The £9 billion ICI Pension Fund has raised its inflation and interest-rate hedging targets to 80% of its liabilities, a high level for a UK pension scheme, as the fund takes an increasingly cautious investment approach.

The fund's trustees said they set the target last year, and by its financial year-end at the end of March the ICI fund was 71% covered against adverse movements in interest-rates, and 80% covered against movements in inflation.