Global equities fell by 4.2% (in local currency terms) in March, with Eurozone markets falling by 2.9% and North America by 9.1% over the month.
Negative returns were observed across all markets in March, with Eurozone equities demonstrating resilience compared to global peers.
The Eurozone bond yields experienced a notable shift upwards in March, primarily influenced by an anticipation of increased borrowing as a result of Germany's significant fiscal policy shift and the ECB’s monetary policy adjustments. Over the month, the ECB lowered its key interest rate by 25 basis points to 2.5%, marking its sixth rate cut since June 2024.
Annuity prices experienced a fall in March as bond prices fell. All annuity rates are 5-year guarantee and single life.
The funding level of our sample DB scheme fell to 103% in March, with assets falling more than its liabilities (calculated using a Funding Standard proxy).
Our High Risk, Medium Risk and Pension Purchase DC strategies posted negative returns over the month with both equities and bonds down.
