Pension funds are navigating a more complex environment shaped by higher rates, inflation and shifting currency dynamics. In its latest World View paper, Canada’s IMCO warns of rising bond yields, concentration risks in passive investing, and the need to prepare for a weaker US dollar, with alternatives like the Swiss franc and yen gaining relevance.

Speaking to Amanda White on the Top1000funds.com podcast, IMCO chief strategist Nick Chamie said higher yields on risk-free assets are reshaping portfolio construction and the risk-return trade-off across markets.