Deficits for half-hedged scheme reaches 99.9% in August but drops back to 97.4%. Both schemes see small declines in funding position through the month. Market outlook is for longer than expected higher inflation |
The Broadstone Sirius Index – a monitor of how various pension scheme strategies are performing on their journeys to self-sufficiency – posts its latest update. The Broadstone Sirius Index found that both the 50% and fully hedged scheme saw a deterioration in funding position through August. The 50% hedged scheme initially saw continued, steady improvement in funding and became the closest to fully funded status since Broadstone began tracking the scheme at the start of 2022. The scheme reached 99.9% but then dropped back in the second half of the month to 97.4%, marking a decline compared to the end of July (98.2%). Similarly, the fully hedged scheme’s funding position dropped from 69.8% at the end of July to 68.6% at the end of August.
Chris Rice, Head of Trustee Services at Broadstone noted "Funding positions for both of our schemes registered small declines in August. We saw gilt yields rise through the first half of the month to a 15 year high which coincided with our half-hedged scheme becoming as close to full funding since we started tracking the scheme. “The market reaction came amid fears of a longer-than-expected high interest rate environment, and the economic impact that this could bring. If expectations of prolonged high inflation are true, the present value of the liabilities will soon begin to creep up.” “Trustees should be discussing the possibility of higher-than-expected inflation with their Scheme Actuary, both in terms of its impact on funding as well as member benefit calculations.” |
|
|
|
Pensions Data Science Actuary | ||
Offices UK wide, hybrid working - Negotiable |
Head of Pricing | ||
London - Negotiable |
Global Specialty Pricing Actuary | ||
London - £95,000 Per Annum |
Client-facing DC investment manager | ||
London / hybrid 3 dpw office-based - Negotiable |
Financial Risk Leader - Bermuda | ||
Bermuda - Negotiable |
Aylesbury Actuaries | ||
Aylesbury / hybrid 3dpw office-based - Negotiable |
Make an impact in protection pricing ... | ||
London / hybrid 2 days p/w office-based - Negotiable |
BPA Implementation Manager | ||
North / hybrid 50/50 - Negotiable |
Head of Reserving | ||
London - £160,000 Per Annum |
In-force Longevity Actuarial Analyst | ||
London / hybrid 2 dpw office-based - Negotiable |
Make a difference within reinsurance ... | ||
London / hybrid 2 dpw office-based - Negotiable |
Be at the cutting-edge of life & heal... | ||
London / hybrid 2 dpw office-based - Negotiable |
Longevity Pricing Analyst | ||
London / hybrid 2 dpw office-based - Negotiable |
Develop your career in life reinsuran... | ||
London / hybrid 2 dpw office-based - Negotiable |
Protection Pricing Actuary - Life Rei... | ||
London / hybrid 2 dpw office-based - Negotiable |
Life (Re)insurance Pricing Manager (P... | ||
London / hybrid 2 dpw office-based - Negotiable |
Take the lead: life & health reinsura... | ||
London / hybrid 2 dpw office-based - Negotiable |
Pricing Tools and Systems Developer | ||
London / hybrid 2 dpw office-based - Negotiable |
Longevity Pricing Actuary | ||
London / hybrid 2 dpw office-based - Negotiable |
Shape the future of longevity | ||
London / hybrid 2 dpw office-based - Negotiable |
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.