Pensions - Articles - Market volatility back in spades after Trump tariffs

 The Broadstone Sirius Index – a monitor of how various pension scheme strategies are performing on their journeys to self-sufficiency – posts its latest update.

 The Broadstone Sirius Index reports its update for March 2025 which finds contrasting fortunes across its 50% and fully hedged schemes albeit with an uncertain future as market volatility “returns in spades” in April.

 Funding for the 50% hedged scheme saw an increase in the funding level from 103.8% to 104.4% 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% to 69.1%. However, the deficit remained broadly steady at £8.1m. 

 Chris Rice, Head of Trustee Services at Broadstone, commented: "The half-hedged scheme continues to see improvements to its position as it consolidates self-sufficient funding levels in contrast to the fully hedged scheme. “However, the beginning of April saw significant market volatility return in spades as President Trump announced a blitz of wide-ranging, global tariffs on trade. It possibly sets the scene for a bumpier ride for our 50% hedged scheme and Trustees must be aware of how this current bout of turbulence will impact funding.

 “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.”