Global equity markets rose by 1.3% (in local currency terms) in July, with longer-dated AAA Eurozone government bond prices also rising (and yields falling).
Eurozone annual rate of inflation rose slightly to 2.6% in July, in line with expectations. The ECB kept interest rates on hold at their July meeting and commented on a possible cut in September as ‘wide open’.
Annuity prices increased over July as a result of falling core bond yields. All annuity rates are 5 year guarantee and single life.
The funding level of our sample DB scheme remained stable at 106% as its assets weighed more than its liabilities (calculated using a Funding Standard proxy) over July.
