Public Pensions Enter a New Era of Portfolio Construction

This study comes from BlackRock

What BlackRock’s latest U.S. Public Pension Peer Study means for pension trustees

U.S. public pension plans are entering the next decade from a stronger position—but the challenges facing trustees are changing.

BlackRock’s latest U.S. Public Pension Peer Study, which examines fiscal-year 2025 data from 150 public pension plans representing more than $5.8 trillion in assets, points to an encouraging trend: funded ratios have stabilized, return assumptions have become more realistic, and many plans have accumulated investment gains that have yet to be fully reflected in reported funded status.

But the study also raises an important question for pension trustees: Is a portfolio truly diversified if much of its risk is still driven by the same underlying economic factors?

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