UK pension funds' use of derivatives lower than expected

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Only 12.6% of UK pension funds surveyed by the Pension Protection Fund (PPF) use swaps to hedge interest and inflation risks.

This was one of the key findings of the PPF's research into investment strategy among UK pension funds, which was carried out by auditors KPMG on 95 pension schemes with assets totalling £191 billion.

"Our survey found there has not been the headlong march into hedging that people first thought - a finding echoed in the UK National Association of Pension Funds' (NAPF) own

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