The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index fell 3.3% in July, and dropped 46% over the year ended July 31, to £180.1 billion ($236.6 billion).
The latest update by the U.K. lifeboat for DB funds of insolvent companies said assets grew 0.7% over the month and 4.6% over the year to total £1.525 trillion. The FTSE All-Share index rose 1.1% over the month, and was up 10.7% for the year.
Liabilities grew slightly in July, by 0.2% to £1.705 trillion. Conventional 15-year gilt yields fell 2 basis points, and index-linked five-to-15 year gilt yields rose 1 basis point. For the year, liabilities fell 4.9%. Over that period 15-year gilt yields were up 43 basis points, and index-linked five-to-15 year gilt yields were down 15 basis points, said the PPF.
The funded levels of these pension funds improved to 89.4% as of July 31, up from 89.1% as of June 30 and 81.4% as of July 31, 2016.
The proportion of funds in deficit also fell, to 71.7% from 72.2% as of June 30 and 81.7% as of July 31, 2016.