The PPF 7800 Index showed that the aggregate surplus of the 5,131 schemes is estimated to have increased over the month to £446.1bn at the end of July 2023, from a surplus of £437.0bn at the end of April 2023, according to its latest update.
The funding ratio increased from 145.8 per cent at the end of June 2023 to 146.4 per cent, with the number of schemes in surplus rising to 4,673 from 4,652.
Broadstone senior actuarial director Jaime Norman says: “We are now entering a new phase of the current economic cycle which presents opportunities and challenges for pension schemes and their trustees.
“Persistent inflation is starting to come down and economists forecast that we are nearing the end of the Bank of England’s rate hiking. Growth assets delivered positive performance through the month as the market becomes increasingly optimistic that a recession is looking less likely as inflation starts to come under control.
“The second half of the year is therefore a crucial time for pension scheme trustees to take stock, particularly given many will have significant improvements in their funding position over the past 18 months.
“Their job now will be capitalising on the market environment either by rapidly pursuing their end-game objectives or assessing the suitability of their investment strategy to the current economic situation.
“In such a congested market, trustees will also need to ensure their data and administration is in good order to make their scheme as attractive as possible to insurers.”
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