The total deficit of defined benefit funds covered by the PPF 7800 index fell 0.1% in November and dropped 55% for the year ended Nov. 30, to £87.6 billion ($117.4 billion).
In an update Tuesday, the Pension Protection Fund, London — the lifeboat fund for DB plans of insolvent U.K. companies — said the funded level of the 5,588 funds covered in the index was 94.7%, no change from October. As of Nov. 30, 2016, the funded level of the 5,794 funds covered at that time was 88.1%.
Assets grew 0.1% in November and 8.3% for the year to total £1.564 trillion. The update said the increase reflects the impact of higher overseas equity prices and bond returns. For the year the FTSE All-Share index was up 9.2%. Figures for the month were not available.
Liabilities also grew 0.1% in November, and 0.8% for the year to £1.651 trillion. Conventional 15-year gilt yields fell by 3 basis points and index-linked five- to 15-year gilt yields rose 7 basis points in November, said the PPF. Over the year ended Nov. 30, 15-year gilt yields were down 12 basis points, while index-linked five-to-15-year gilt yields were up 5 basis points.
The percentage of deficit funds was 65.6% as of Nov. 30, up slightly from 65.4% in October. As of Nov. 30, 2016, 73.7% of the 5,794 funds in the index were in deficit.
