The growth-focused defined benefit (DB) pension scheme strategy in the Broadstone Sirius Index improved its funding position by 1 percentage point in July, reaching 94.1 per cent, according the firm's latest update.

The strategy continued to outperform the matching-focused approach, which finished July unchanged at 89.9 per cent, after a rise of 0.5 percentage points in June.

Both schemes started 2026 at the same 90 per cent funding level.

The Broadstone Sirius Index measures how various scheme strategies are performing on their paths to low dependency through tracking a growth-focused model scheme and more conservative matching-focused model scheme.

Broadstone head of trustee services, Chris Rice, explained that the growth-focused scheme’s underhedged position benefitted in a rising yield environment and from greater exposure to return-seeking assets, performing well recently.

“However, the contrasting performance of the two strategies should not be interpreted as evidence that taking greater investment risk will always deliver a better outcome,” he said.

Recent gains in the growth-focused scheme could be exposed to a market downturn, while the matching-focused strategy is designed to offer greater stability and liability protection.

Rice explained the appropriate balance between growth and matching assets will depend on each scheme’s funding position, covenant strength and liquidity requirements. Trustees should avoid making decisions based on a few months of performance.

He added: “For schemes that have benefited from recent market strength, now may be an appropriate time to review their long-term objectives.

"Clear triggers and a well-defined journey plan can help trustees reduce risk at the right time rather than relying on market conditions remaining favourable.”

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