UK company pensions liabilities worth about £18bn (€23bn) were protected against market volatility in the first half of this year, according to asset manager F&C. The figure represents 2% of the total pensions obligation in the country's private sector and suggests that hedging is on the rise.

F&C interviewed derivatives dealers at investment banks, who provide the financial instruments - typically interest rate and inflation swaps - which insulate companies against unexpected movements in the estimated value of their pensions debt.