Pension funds face a host of challenges in today's markets – their need for effective risk management has grown in magnitude, while their internal systems and staff remain constrained. Markets are more complex, dynamic, and uncertain than ever, yet plans often lack the resources to fully staff a risk function. Whether assets are managed in-house or by external investment managers, staying on top of portfolio risks while aggressively managing costs are a significant challenge.

Aladdin, along with the BlackRock Solutions team, helps pension funds in several ways. Leveraging BlackRock's extensive industry knowledge, we provide risk analysis tools and advisory services tailored to meet the unique needs facing pension funds. Services include risk management framework design, ongoing risk reporting, including analyses relative to liability based benchmarks, and custom analysis, training and education. With Aladdin, pensions can overcome some of their most critical challenges.

See how Aladdin provides solutions to Pension funds' key challenges.

  • Limited staff and technology as the need for better risk management is growing.

    Aladdin team handles data collection/aggregation and production of analyses.

    ▪ Service offering, with technology fully hosted and supported by BlackRock.

    ▪ Source, load and aggregate positions from custodians and market data from third party providers.

    ▪ Run analyses and deliver relevant information to pension plan constituents in a digestible and transparent format (e.g. detailed reports for investment staff, summary-level views for trustees, etc.).

  • Need for custom reporting and analysis.

    Customizable and sophisticated risk analyses available through Aladdin and Aladdin Risk offerings.

    ▪ Aladdin teams work with pensions to build custom analysis to address the needs of multiple audiences: Investment Officers, Risk Managers, Portfolio Managers, Boards and Investment Committees.

    ▪ Assist in designing and producing stress tests (historical and hypothetical).

    ▪ BlackRock Solutions' Risk Advisory Services supplement reports with relevant commentary and analysis.

  • Need for better investment tools.

    Aladdin provides the tools you need to support the full investment process.

    ▪ Perform portfolio construction, pro forma modeling, and "what-if" analysis.

    ▪ Support for asset allocation and risk budgeting analysis.

    ▪ Combine Aladdin's risk and portfolio modeling tools with a full order management and operations platform.

  • Lack of independent risk function.

    Custom analysis training and education through Risk Advisory Services.

    ▪ Risk-related educational topics and targeted training sessions.

    ▪ Customized training program for effective knowledge transfer, access to BlackRock sector specialists, product strategists, and other subject matter experts.

    ▪ Ongoing support for market-based themes and risk-based recommendations.