Even as reflation takes root, low expected returns across asset classes make allocation decisions more difficult and consequential. In this first edition of a new quarterly web publication, we introduce a hypothetical asset allocation for corporate and public defined benefit pension plans.
Alain Kerneis and Gabriella Barschdorff of BlackRock Client Solutions on the market outlook and asset allocation decisions.
We’re pleased to introduce a new resource for U.S. defined-benefit pension funds.
Every quarter, we plan to present two hypothetical model portfolios—one for corporate plans and one for public plans—updated to reflect the latest revisions to our five-year capital market assumptions.
We’ll also provide timely commentary on our return outlook and its impact on asset allocation decisions. In future issues, look for us to delve more deeply into active vs. passive tradeoffs, the segmenting of alternatives allocations and other important inputs into portfolio design.
This new resource is a collaborative effort between the BlackRock Client Solutions team and the BlackRock Investment Institute.
By pairing our market outlook with allocation ideas tailored to the objectives of corporate and public DB plans, we aim to provide a clearer view of the road ahead and how pension investors can travel it more effectively.
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