Funding levels edged lower in November with Broadstone’s fully hedged model slipping from 72.5 per cent to 71.7 per cent while the 50 per cent hedged scheme dipped from 109.1 per cent to 108.4 per cent.
Broadstone says falls of 0.8 and 0.7 percentage points were driven by softer growth asset performance and a modest easing in gilt yields over the month.
Broadstone head of trustee services Christopher Rice says: “November was an active month as the Budget saw a significant level of rumour-mongering in the run up to the Chancellors statement on the 26th. While there was minimal volatility, Defined Benefit pension schemes would have been closely watching for any reform that would have impacted them. In the end, changes to pre-97 indexation and further colour on access to surpluses were the main takeaways and the fiscal event was broadly welcomed by markets.
“Trustees will hope that market turbulence is behind them as we head towards 2026 which looks set to be another active year for the insurance de-risking market building on a busy 2025, particularly for smaller deals. The continued strength of funding levels as well as growing insurer and consolidator capacity means that demand should continue to be serviced over the coming months.”
