![]() |
Half hedged scheme funding edges down from 98.2% to 97.6% in October. Fully hedged scheme also declines as funding drops from 68.4% to 67.2% Liabilities close to record lows reached a year ago amidst liability-driven investment (LDI) crisis |
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 finds that both the 50% hedged scheme and fully hedged scheme experienced a slight deterioration in their funding levels during October, as all asset classes fell. Rising interest rate expectations caused a reduction in the liabilities and matching assets but falls in growth assets caused the total value of assets to fall by more than the liabilities. The additional exposure to interest rate movements by the fully hedged scheme caused its funding level to deteriorate more than for the half hedged scheme. Through the month the fully hedged scheme dropped back from 68.4% to 67.2%, with the 50% hedged scheme declining from 98.2% to 97.6%.
The market environment through 2023 has been characterised by rising interest rates driving falls in both assets and liabilities which has protected funding levels. Chris Rice, Head of Trustee Services at Broadstone noted "Economic concerns caused most asset classes to fall in October, which has unsurprisingly been replicated in the funding levels of our schemes. “The schemes’ liabilities are now at a level consistent with the position a year ago, which was in the midst of the LDI crisis. Thankfully, the volatility of last year has not been repeated, and both schemes are exhibiting a more stable funding level and deficit value.
“Nevertheless, Trustees should continue to review their investment strategy to ensure that any opportunities to reduce volatility are taken up.” |
|
|
|
Reinsurance Pricing | ||
London - £180,000 Per Annum |
Senior Pricing Associate - Corporate ... | ||
London / hybrid 2-3 dpw office-based - Negotiable |
Actuarial Reporting Manager | ||
South East / hybrid 3dpw office-based - Negotiable |
FTC: London Market Actuarial Associate | ||
London / hybrid 2 days p/w office-based - Negotiable |
BPA Consultant | ||
London / hybrid 2-3 dpw office-based - Negotiable |
GI Pricing Analyst - Fully Remote | ||
Fully remote - Negotiable |
Technical Pricing Manager | ||
Fully remote with the option to work out of an office in the South of England - Negotiable |
FTC: Technical Pricing Analyst - Remote | ||
Fully remote - Negotiable |
Investment & Pensions Consultant - Bi... | ||
South East / London / hybrid - Negotiable |
1st Investment DB Pensions Actuary in... | ||
UK Flex / hybrid 2 dpw office-based - Negotiable |
Risk Manager | ||
London - Negotiable |
FTC (9-12 months) Financial Risk Manager | ||
London / hybrid 2 days p/w office-based - Negotiable |
Actuarial and Investment Consultant | ||
Remote / 1 dpm office-based - Negotiable |
Senior DB Investment Consultant | ||
Remote / 1 dpm office-based - Negotiable |
Senior Technical BPA Analyst | ||
South East / hybrid 3dpw office-based - Negotiable |
Enterprise Risk Manager | ||
South East / hybrid 3dpw office-based - Negotiable |
Life Actuarial Analyst - Financial Re... | ||
South East / hybrid with 2 days p/w office-based - Negotiable |
STAR EXCLUSIVE: First PRT Actuary in ... | ||
Flex / hybrid - Negotiable |
First Actuary In - Capital | ||
London - Negotiable |
P&C Consulting Actuary | ||
London / hybrid - Negotiable |
Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.