The total deficit of U.K. corporate pension funds covered by the Pension Protection Fund's 7800 index fell 26.6% for the month and 46.4% for the year ended July 31, to £62.8 billion ($82.4 billion).
The PPF said in an update Tuesday that the funding level of these plans improved to 96.3% as of July 31, compared with 94.9% as at June 30 and 92.9% a year earlier.
Assets grew 0.9% in July and 4.9% for the year to £1.621 trillion. The FTSE All-World index was up 9.4% for the year.
Liabilities fell in July by 0.5% to £1.684 trillion, but grew 1.3% over the past year. Conventional 10-, 15- and 20-year gilt yields rose by 5 basis points, 4 basis points and 3 basis points, respectively, over the month. Index-linked five-to-15-year gilt yields rose by 2 basis points in July.
Over the past year, 10-, 15- and 20-year gilt yields were up 19 basis points, unchanged, and fell 9 basis points, respectively. Index-linked five-to-15-year gilt yields were up 13 basis points for the year, said the update.
The percentage of funds in deficit improved to 63.3% as at July 31, compared with 65% a month earlier and 67.9% as of July 31, 2017.