UK pension schemes are using less hedging to manage their exposure to risks such as inflation and interest rates than might be expected and many "have not fully considered their investment strategy" in the light of all the available financial tools, according to a survey by financial services group KPMG.

KPMG asked 95 schemes with £191bn of assets under management about their use of hedging strategies to cover exposure to inflation and interest rate risks. Thirty-eight or 40% said they already used financial tools called swaps for the purpose, while 28 were considering it.