Trustees still slow to learn the value of the perfectly shaped hedge

Market conditions still mean that hedging is an attractive option for schemes

More than a decade ago, when former City minister Paul Myners was just chairman of Gartmore, his report on the UK pension scheme industry was pretty damning, not least concerning the failure of trustees to understand the importance of risk budgets.

Schemes have subsequently learnt a great deal about how to diversify portfolios and match their liabilities.

WSJ Logo