The current funding ratio increased from 119.9% at the end of February to 123.0% at the end of March. Good investment returns and a decrease in pension liabilities due to higher interest rates resulted in a 3.1 percentage point increase in the current funding ratio.
The increase in the current funding ratio was mainly due to good returns on equity markets. The portfolio of equities therefore showed a good return in March. Investments in fixed-income securities involving more risk, such as corporate bonds with a lower creditworthiness and government bonds in emerging countries, also benefited from the positive economic developments.
Pension liabilities decreased
In addition to good investment returns, higher interest rates were the second reason for the sharp rise in the current funding ratio. The higher interest rate led to a decrease in pension liabilities in March.