November saw a slight dip in defined benefit (DB) funding levels, Broadstone’s Sirius Index has revealed, although overall positions remained resilient amid muted market movements around the Budget.

According to the latest update, both of the index’s modelled schemes slipped back by similar margins as growth assets softened and gilt yields edged lower over the month.

The fully hedged scheme saw its funding level fall from 72.5 per cent at the end of October to 71.7 per cent at the end of November, a decrease of 0.8 percentage points.

The 50 per cent hedged scheme recorded a 0.7 percentage point fall, from 109.1 per cent to 108.4 per cent.

Broadstone head of trustee services, Christopher Rice, acknowledged that November had been “an active month” as speculation gathered in the lead-up to the Chancellor’s 26 November statement.

However, he noted that, despite minimal volatility, DB trustees had been alert to potential reforms that could affect schemes.

“In the end, changes to pre-97 indexation and further colour on access to surpluses were the main takeaways, and the fiscal event was broadly welcomed by markets,” Rice explained.

“Trustees will hope that market turbulence is behind them as we head towards 2026, which looks set to be another active year for the insurance de-risking market, building on a busy
2025, particularly for smaller deals,” he continued.

"The continued strength of funding levels, as well as growing insurer and consolidator capacity, means that demand should continue to be serviced over the coming months,” added Rice.

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