Defined benefit (DB) funding levels improved throughout May, while markets continued to be volatile amid tariff uncertainty, Broadstone's Sirius Index has revealed.

Broadstone's Sirius Index, which monitors how various pension scheme strategies are performing on their journeys to self-sufficiency, showed that Broadstone's fully-hedged scheme saw a slight improvement in its funding position, increasing from 69.1 per cent in April to 69.3 per cent in May.

In addition, the index showed a "significant increase" in the 50 per cent hedged scheme's funding level to 105.8 per cent, up from 103.6 per cent in the previous month.

This corresponded to a £0.5m increase in its surplus.

The index noted that rising long-term interest rates would benefit schemes that have not fully hedged, as evidenced by their significant funding improvement.

Meanwhile, the release of the Pension Schemes Bill and regulator guidance, the firm suggested in its report.

Commenting on the update, Broadstone head of trustee services, Chris Rice, said: "While markets continue to be volatile, DB pension scheme funding continues to hold steady. May was particularly encouraging, with a funding improvement realised whether the scheme was fully hedged or not.

"The growth in the surplus on a low dependency basis comes just as more detail is published on the potential for surplus release via the Pension Schemes Bill, with the rules around extraction set to be eased."

Rice added that the new options granted by the Pension Schemes Bill, and new guidance from the regulator on issues to consider when deciding on strategies, were "broadening" what was previously a relatively short conversation for most schemes.

"Along with continued improvements in funding, this will provide plenty of food for thought for trustees and employers as they consider their long-term strategy and endgame objectives," he concluded.

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