{"id":207756,"date":"2025-09-11T07:44:18","date_gmt":"2025-09-11T07:44:18","guid":{"rendered":"https:\/\/ibkrcampus.eu\/campus\/?p=207756"},"modified":"2025-09-11T13:10:13","modified_gmt":"2025-09-11T13:10:13","slug":"why-are-public-pension-funds-re-thinking-allocations","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/why-are-public-pension-funds-re-thinking-allocations\/","title":{"rendered":"Why are Public Pension Funds re-thinking allocations?"},"content":{"rendered":"\n<p>Originally Posted 09 September 2025 &#8211; <a href=\"https:\/\/www.ssga.com\/ie\/en_gb\/institutional\/insights\/public-pension-funds-rethink-allocation-in-a-higher-rate-world\">Why are Public Pension Funds re-thinking allocations?<\/a><\/p>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Bonds are back<\/strong> After a decade of chasing yield in risk assets, public pension funds (PPFs) are rebalancing toward fixed income as rising rates restore its appeal.<\/li>\n\n\n\n<li><strong>Private markets plateau<\/strong> Allocations to alternatives\u2014especially private equity\u2014are leveling off, with liquidity risks and higher rates cooling past enthusiasm.<\/li>\n\n\n\n<li><strong>Returns diverge widely<\/strong> While average returns remain solid at 6\u20138%, performance dispersion has increased, spotlighting the benefits of diversification and the importance of making early strategic pivots.<\/li>\n<\/ul>\n\n\n\n<p>This report is part of a long-running series on asset allocation among public investors \u2013 among them PPFs, sovereign wealth funds and central banks. In past reports, we highlighted nascent, later significant, trends such as the shift towards risk assets, driven by a combination of near-zero interest rates and structural diversification trends among global PPFs. In our latest update, we see the beginnings of a pivot in response to a new macro regime as interest rates normalize and risk asset allocations peak.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<p><a href=\"https:\/\/www.ssga.com\/ie\/en_gb\/institutional\/library-content\/assets\/pdf\/global\/multi-asset\/2025\/public-pension-funds-report.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Read More<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>    Bonds are back After a decade of chasing yield in risk assets, public pension funds (PPFs) are rebalancing toward fixed income as rising rates restore its appeal.<br \/>\n    Private markets plateau Allocations to alternatives\u2014especially private equity\u2014are leveling off, with liquidity risks and higher rates cooling past enthusiasm.<br \/>\n    Returns diverge widely While average returns remain solid at 6\u20138%, performance dispersion has increased, spotlighting the benefits of diversification and the importance of making early strategic pivots.<\/p>\n","protected":false},"author":1344,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":true,"footnotes":""},"categories":[14,146,12,153,148,7],"tags":[3801,362,314,3802],"contributors-categories":[462],"class_list":{"0":"post-207756","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-fixed-income","7":"category-macro","8":"category-securities","9":"category-stocks","10":"category-text-articles","11":"category-traders-insight","12":"tag-allocations","13":"tag-economic-outlook","14":"tag-market-outlook","15":"tag-pension-funds","16":"contributors-categories-state-street-global-advisors"},"pp_statuses_selecting_workflow":false,"pp_workflow_action":"current","pp_status_selection":"publish","acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.5) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Why are Public Pension Funds re-thinking allocations?<\/title>\n<meta name=\"description\" content=\"Bonds are back After a decade of chasing yield in risk assets, public pension funds (PPFs) are rebalancing toward fixed income as rising rates restore...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.interactivebrokers.eu\/campus\/wp-json\/wp\/v2\/posts\/207756\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Why are Public Pension Funds re-thinking allocations?\" \/>\n<meta property=\"og:description\" content=\"Bonds are back After a decade of chasing yield in risk assets, public pension funds (PPFs) are rebalancing toward fixed income as rising rates restore its appeal. Private markets plateau Allocations to alternatives\u2014especially private equity\u2014are leveling off, with liquidity risks and higher rates cooling past enthusiasm. Returns diverge widely While average returns remain solid at 6\u20138%, performance dispersion has increased, spotlighting the benefits of diversification and the importance of making early strategic pivots.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/why-are-public-pension-funds-re-thinking-allocations\/\" \/>\n<meta property=\"og:site_name\" content=\"IBKR Campus EU\" \/>\n<meta property=\"article:published_time\" content=\"2025-09-11T07:44:18+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-09-11T13:10:13+00:00\" \/>\n<meta name=\"author\" content=\"Vladimir Gorshkov, CFA\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Vladimir Gorshkov, CFA\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"1 minute\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\n\t    \"@context\": \"https:\\\/\\\/schema.org\",\n\t    \"@graph\": [\n\t        {\n\t            \"@type\": \"Article\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/traders-insight\\\/securities\\\/why-are-public-pension-funds-re-thinking-allocations\\\/#article\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/traders-insight\\\/securities\\\/why-are-public-pension-funds-re-thinking-allocations\\\/\"\n\t            },\n\t            \"author\": {\n\t                \"name\": \"Vladimir Gorshkov, CFA\",\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/#\\\/schema\\\/person\\\/24a49b56d63849590ce986c691382dbe\"\n\t            },\n\t            \"headline\": \"Why are Public Pension Funds re-thinking allocations?\",\n\t            \"datePublished\": \"2025-09-11T07:44:18+00:00\",\n\t            \"dateModified\": \"2025-09-11T13:10:13+00:00\",\n\t            \"mainEntityOfPage\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/traders-insight\\\/securities\\\/why-are-public-pension-funds-re-thinking-allocations\\\/\"\n\t            },\n\t            \"wordCount\": 175,\n\t            \"commentCount\": 0,\n\t            \"keywords\": [\n\t                \"allocations\",\n\t                \"economic outlook\",\n\t                \"market outlook\",\n\t                \"pension funds\"\n\t            ],\n\t            \"articleSection\": [\n\t                \"Fixed Income\",\n\t                \"Macro\",\n\t                \"Securities\",\n\t                \"Stocks\",\n\t                \"Text Articles\",\n\t                \"Traders' Insight\"\n\t            ],\n\t            \"inLanguage\": \"en-US\",\n\t            \"potentialAction\": [\n\t                {\n\t                    \"@type\": \"CommentAction\",\n\t                    \"name\": \"Comment\",\n\t                    \"target\": [\n\t                        \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/traders-insight\\\/securities\\\/why-are-public-pension-funds-re-thinking-allocations\\\/#respond\"\n\t                    ]\n\t                }\n\t            ]\n\t        },\n\t        {\n\t            \"@type\": \"WebPage\",\n\t            \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/traders-insight\\\/securities\\\/why-are-public-pension-funds-re-thinking-allocations\\\/\",\n\t            \"url\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/traders-insight\\\/securities\\\/why-are-public-pension-funds-re-thinking-allocations\\\/\",\n\t            \"name\": \"Why are Public Pension Funds re-thinking allocations? - IBKR Campus EU\",\n\t            \"isPartOf\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/#website\"\n\t            },\n\t            \"datePublished\": \"2025-09-11T07:44:18+00:00\",\n\t            \"dateModified\": \"2025-09-11T13:10:13+00:00\",\n\t            \"author\": {\n\t                \"@id\": \"https:\\\/\\\/ibkrcampus.eu\\\/campus\\\/#\\\/schema\\\/person\\\/24a49b56d63849590ce986c691382dbe\"\n\t            },\n\t            \"description\": \"Bonds are back After a decade of chasing yield in risk assets, public pension funds (PPFs) are rebalancing toward fixed income as rising rates restore its appeal. 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