Pension schemes hedged against inflation hikes at record levels over the second quarter, according to asset manager F&C, as liability driven investment strategies continue to become more popular.

The volume of deals carried out to hedge against inflation-linked liabilities hit £18.5bn in the second quarter of this year, according to F&C's latest Liability Driven Investment survey. The figure represents an all-time high, and was almost three times that of the same period in 2011.