The accounting deficit of FTSE 350 company pension funds grew 14.4% to £103 billion ($134.2 billion) for the month ended July 31.
Consultant Mercer's latest pensions risk survey showed assets were unchanged, vs. figures as of June 30, at £867 billion, while liabilities increased by 1.4% to £970 billion as of July 31. That gives a funded status of 89.4% vs. 90.6% as of June 30.
Mercer said the increase in liabilities was driven by falling bond yields. High-quality corporate bond yields were down to 1.37% as of July 31, vs. 1.45% as of June 30, data published by Mercer show. Market implied inflation was unchanged at 3.08%, while the FTSE All-Share Total Return index was down 3.6% over the month.
Deficits increased from £51 billion as of July 31, 2019. Assets grew 4.1% and liabilities were up 9.7%. The funded status as of July 31, 2019 was 94.2%.