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.

This material is provided for informational purposes only and is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are subject to change at any time without notice. References to specific securities, asset classes and financial markets are for illustrative purposes only and are not intended to be and should not be interpreted as recommendations.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, any historical performance information of other investment vehicles or composite accounts managed by BlackRock, Inc. and/or its subsidiaries (together, “BlackRock”) included in this material is presented by way of example only. No representation is made that any performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. Past performance is no guarantee of future results.

The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.


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