2021 a good year for Pension Scheme Funding
Bobby Riddaway
Chair of Trustee Sustainability Working Group | Professional Trustee | Managing Director HS Trustees | International Keynote Speaker | Mallowstreet Most Influential Advisor | NED | C-Suite |
The funding levels of the Creatingbetteroutcomes Pension Scheme look well on course to deliver a positive result at the end of 2021.
They all rose by between 1 and 2% over the week due to a significant rise in Gilt Yields. UK Equities rose by 1% but global equities were flat.
As long as there isn't a significant move over the last week then the funding levels will all be between 4% and 14% higher than at the start of 2021.
The main reason for the improvement has been strong equity markets. Nominal gilt yields rose over the year, whereas real gilt yields fell again.
So whilst the hedged strategies performed better than the non hedged, this was only to a small amount due to the mixed performance of gilts.
The best performing strategies, and they ended up being number one and two, were the 75% equity strategies - with the hedged being slightly better than the unhedged.
That is all for 2021 and I will post a year end result early in 2022. Also in 2022 I will be dropping the 2017 charts as all of the Actuarial Valuations with an effective date of 2017 should now be finished and signed off.