The Broadstone Sirius Index has seen an improvement in defined benefit pension scheme funding, with the 50 per cent hedged scheme moving from full funding to a surplus of 101.8 per cent, raising its surplus by £0.4m to reach £0.5m.
The fully hedged scheme maintained its funding level, dropping just slightly to 69.4 per cent from 69.5 per cent. However, rising interest rates reduced assets and liabilities, cutting the deficit by £0.2 million to £8.4 million.
Broadstone head of trustee services Chris Rice says: “Thankfully, in the face of a highly anticipated Autumn Budget on October 30th, scheme funding remained largely stable throughout the month.
“There were steady rises in interest rates in October, reducing liabilities and hedging assets. This caused the fully hedged scheme to hold its funding level as expected, but the half-hedged scheme continued to improve its funding level with a reasonable surplus now being disclosed.
“Recent improvements in the under-hedged scheme over the past few months serve as a reminder to trustees of partially hedged schemes that their funding status may be stronger than anticipated, making this a potentially opportune moment to consider enhancing their protection.”
