The expanded program was welcomed by the Pensions and Lifetime Savings Association, the U.K. trade body for U.K. occupational retirement plans.
"The bank's early intervention was generally effective, with far lower levels of gilts being purchased than provided for – around £5 billion out of a facility of up to £65 billion," the PLSA said in a news release. "Recent days have, however, shown that market confidence remains low."
The PLSA is engaging with regulators and supporting its members to help manage the situation, it said.
The trade body also said it will work to understand any lessons learned and to make sure that the LDI market, "which in general has provided U.K. schemes and U.K. PLC with significant amounts of stability over the last 20 years, remains resilient and effective," the release said.
The PLSA's "analysis suggests that the majority of pension funds used LDI in a prudent manner and with sensible arrangements to meet calls for collateral if normal market conditions, or those under prudent stress scenarios, prevailed," the release said. Pension funds have also worked to strengthen their financial resilience further over recent weeks.
"If there are a minority of cases where – in light of the unprecedented fluctuations in market values – gearing turned out to be too high, or the LDI providers did not have sufficient financial resilience, it is important that the regulators and industry address these risks," it added.
However, the PLSA added that a key concern for pension funds is that the BOE's purchases program should not be ended too soon, with many wanting to extend to Oct. 31 — when the U.K. chancellor of the exchequer, Kwasi Kwarteng, is set to unveil his fiscal plan — or potentially beyond.