22 October 2012
The Pension Protection Fund produces a monthly index update (this month’s release has data taken as at end-September 2012) of the estimated funding position of the defined benefit schemes which would be potentially eligible for entry into the Fund.
Total scheme deficits fell very slightly during the month, from £280.3bn as at end August to £229.1bn at end September with a corresponding small improvement in s179 funding ratio to 82.3% from 79.1%.
Whilst it was true that return-seeking asset values rose during the month, by the larger contributor to improved performance came from the increase in yields during the period, with 20yr conventional yields increasing by some 10bp. This increase has continued in the early part of October promising the likelihood of a further improvement at this month end.
A full report is provided by the PPF at this external page