Pension scheme trustees will need to navigate "significant" market volatility following US President Donald Trump's tariffs, Broadstone has said, after its analysis revealed that half and fully hedged defined benefit (DB) schemes experienced contrasting fortunes in March.

Broadstone's Sirius Index, which monitors how various pension scheme strategies are performing on their journeys to self-sufficiency, showed that the 50 per cent hedged scheme saw an increase in the funding level from 103.8 per cent to 104.4 per cent in March with the surplus also rising to £1.1m.

However, the fully hedged scheme’s funding deteriorated slightly in March with the funding level slipping from 69.7 per cent to 69.1 per cent, although the deficit remained broadly steady at £8.1m.

But Broadstone warned that both schemes face an "uncertain future", as market volatility has returned "in spades" in April.

“The beginning of April saw significant market volatility return in spades as President Trump announced a blitz of wide-ranging, global tariffs on trade," Broadstone head of trustee services, Chris Rice, explained.

"It possibly sets the scene for a bumpier ride for our 50 per cent hedged scheme and trustees must be aware of how this current bout of turbulence will impact funding."

However, Rice suggested that those that can navigate through this period still seem well-set to achieve their end-game objectives with a growing range of insurers servicing buoyant demand across the market.

"Preparation alongside solid data and administration remain the key to attracting an insurer and transacting rapidly," he added.

Industry experts previously urged pension scheme trustees not to panic amid the recent market volatility, warning that making “knee jerk reactions”, such as changing investment strategy or cutting back on contributions, could crystallise losses.

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