LCP Investment Summary July 2026

Global equities fell by -0.3% (in local currency terms) in July, with Eurozone markets falling by -0.1% and North America falling by -0.6% (in EUR terms). The U.S. dollar weakened against the Euro over the month.

Following a strong first half of the year, global equities experienced heightened volatility in July, driven by renewed geopolitical tensions and growing scrutiny of the sustainability of profits across the AI investment cycle. Technology stocks came under pressure as investors reassessed elevated valuations and the returns expected from continued AI-related capital expenditure. Semiconductor companies were among the weakest performers, while forced deleveraging by some hedge funds amplified the sell-off. However, resilient corporate earnings and relative strength in selected mega-cap companies, as well as the financials and energy sectors, helped limit the overall decline.

The sample DB scheme’s funding level fell to c.111% during the month, reflecting a decline in asset values (calculated using a Funding Standard proxy).

Our High Risk, Medium Risk and Pension Purchase DC strategies all experienced negative returns over the month.