Schemes suffer funding level drop of 1.5 points in Q2

clock

Scheme funding levels fell by 1.5 percentage points over the second quarter, Investment Solutions research reveals.

The consultant said that, over the second quarter, scheme funding levels fell from 75.6% on 31 March to 74.1% on the 30 June.

It said the fall was due to a three percentage point increase in liability values - a decline offset by a 1.5 percentage point increase in asset values.

Investment Solutions said the increase in liabilities was due to falling gilt yields - yields which had dropped back as investors sought refuge in safe-haven investments such as index-linked and fixed UK government bonds following concerns around peripheral European debt, pushing up the prices of bonds. Increases in bond prices leads to falls in the yield on those bonds.

Despite this, it said equity markers had risen over the quarter - with the FTSE All Share index rising by 1.9% and MSCI World increasing by 0.5% in sterling terms over the period.

More on Investment

LGPS Central launches stewardship service

LGPS Central launches stewardship service

Midlands LGPS pool says service designed to ease governance burden on partner funds

Martin Richmond
clock 02 May 2025 • 1 min read
How the way schemes are working with asset managers is changing

How the way schemes are working with asset managers is changing

As schemes grow in size and sophistication, collaboration is becoming key

Charlotte Moore
clock 01 May 2025 • 8 min read
Future Growth Capital formally launches UK and global LTAFs

Future Growth Capital formally launches UK and global LTAFs

Side by side offerings gives investors options on where private markets exposures should be

Jonathan Stapleton
clock 29 April 2025 • 4 min read
Trustpilot