The Railways Pension Scheme, one of the UK’s biggest pension schemes, has hired a fund manager to help protect its portfolio against rising prices and interest rates, as concerns grow that inflation may pick up in the years ahead.

The Railways Pension Scheme, worth about £17bn (€19bn), is building a liability-driven investment sub-portfolio which will be managed by Insight Investment. It is not yet funded, but the scheme's size means that Insight's mandate could grow into one of the most significant LDI contracts in the UK, according to rivals.