DB funding is being hit with perfect storm of lower returns and yields

As falling yields lower funding levels, PP finds DB schemes are in a predicament.

Stephanie Baxter
clock • 5 min read

Gilt yields have fallen on the back of January's market jitters and rate rise expectations have been pushed back again. This coupled with lower returns does not bode well for DB schemes, finds Stephanie Baxter

At a glance DB funding levels have fallen since the end of 2015 Schemes will have to cope with low yields and lower equity returns 2016 valuations will be challenging and sponsors ...

To continue reading this article...

Join Professional Pensions

  • Unlimited access to real-time news, analysis and opinion from the industry
  • Receive our in-depth monthly magazine in either print or digital format
  • Access our Sustainable Investment Hub covering news and opinion from thought leaders in the ESG space
  • Receive important and breaking news stories selected by the Editors in our daily newsletter
  • Hear from industry experts and other forward-thinking leaders
  • Receive a monthly members-only newsletter with exclusive opinion pieces from leading industry experts and a feature from the magazine in advance of its release date

Join now

 

Already a Professional Pensions
member?

Login

More on Investment

SPP calls into question British business investment disclosure proposals for DC

SPP calls into question British business investment disclosure proposals for DC

Society’s members say the proposals could have an opposite effect

Martin Richmond
clock 01 May 2024 • 2 min read
Partner Insight: How can we unlock opportunity in a new market regime?

Partner Insight: How can we unlock opportunity in a new market regime?

Several multi-decade trends have recently come to an end, and investors are contending with a world that is less connected, less stable geopolitically, and potentially more inflationary. Against this complex backdrop, Newton CEO Euan Munro explores how pension fund investors can seek to unlock opportunity.

XPS review reveals 'wide divergence' in 2023 fiduciary investment performance

XPS review reveals 'wide divergence' in 2023 fiduciary investment performance

Portfolios most exposed to illiquid assets most likely to have suffered low returns

Jonathan Stapleton
clock 30 April 2024 • 1 min read
Trustpilot