The 2026 Pension Fund Managers Sentiment Report shows a clear improvement in

confidence across the pension industry. All pension fund managers surveyed

expect economic conditions to improve over the next quarter, supported by

easing inflation and improving macroeconomic stability.

Inflation moderated significantly in 2025, reshaping expectations around interest

rates and government borrowing costs. Pension funds continue to hold over 60%

of assets in government securities, but portfolio rebalancing is underway as risk

appetite improves. About 73% of pension fund managers plan to take on more risk

in 2026, with increased allocations to equities and alternative assets, while bond

exposure has edged lower.