Global equity markets fell by 1.5% (in local currency terms) in December, while Eurozone markets rose by 1.5% over the month.
Equities in the Eurozone relatively outperformed global markets in December, demonstrating some resilience despite challenges such as sluggish economic growth, political instability and lingering trade policy concerns. This is against the general trend of Eurozone equities underperforming other regions over 2024.
In contrast, U.S. equities faced a sell-off driven by profit-taking. Whilst the Federal Reserve's decision to reduce interest rates by 0.25% was widely anticipated, the Fed’s forward guidance disappointed investors who had hoped for indications of further series of rate cuts in 2025. This dampened outlook on future liquidity and growth prospects and pushed stock prices lower. Despite this pullback, 2024 was marked one of the strongest years for US equities.
Annuity prices experienced a fall in December as bond yields rose. All annuity rates are 5-year guarantee and single life.
The funding level of our sample DB scheme fell from 109% to 108% in December, with assets falling more than its liabilities (calculated using a Funding Standard proxy) over December.
Sample DC Schemes Our High Risk, Medium Risk and Pension Purchase DC strategies posted negative returns over the month.
