Jessica O'ConnorBroadstone’s Sirius Index recorded an improvement in pension scheme funding levels during April, with both modelled schemes reversing losses experienced in March.
The index, which tracks how different pension scheme investment strategies are performing against a low dependency basis, found that the “growth focused” scheme improved from 89.0% funded at the end of March to 91.7% at the end of April.
Meanwhile, the more conservative “matching focused” scheme increased from 88.6% funded at the end of March to 89.7% at the end of April.
Both schemes had started 2026 at a funding level of 90.0%.
Broadstone said the stronger performance of the growth-focused scheme was driven by positive returns from growth assets and higher interest rates, as the strategy was not fully hedged against interest rate movements.
Andrew Knight-Stephens, investment director at Broadstone, said: “Pension schemes with lower levels of interest rate hedging generally saw an improvement in funding levels over April, as higher gilt yields reduced the value of scheme liabilities.
“However, whilst retaining interest rate exposure was rewarded over April, such a position continues to represent a source of funding level risk.
“Growth assets, particularly equities, delivered positive returns over April, with most major equity markets advancing despite continued volatility and an uncertain macroeconomic backdrop.”
