Global equities rose by 2.2% (in local currency terms) in July, with Eurozone markets rising by 1.0% and North America by 4.8% (in EUR terms).
European equities experienced modest gains in July amid a new U.S.-EU trade deal imposing a 15% tariff on most European exports to the U.S. While the agreement brings stability after weeks of uncertainty, EU exporters face higher costs, it sparked some concerns over European competitiveness. These factors contributed to the euro weakening against the dollar by the end of the month.
U.S. equity markets continued their strong run in July. Positive returns were driven by the tech sector, with the Nasdaq & S&P 500 posting new all-time highs over the month, despite ongoing geopolitical tensions and the August 1 deadline for unresolved U.S. trade deals.
The funding level of our sample DB scheme rose to c.105% in July (calculated using a Funding Standard proxy).
Our High Risk and Medium Risk DC strategies posted positive returns over the month while the Pension Purchase DC strategy experienced a fall, reflecting a decrease in the cost of annuities.
