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Bond managers prosper as pension hedging booms

The likes of Insight, BlackRock and BMO are profiting from the growing appeal of liability hedges to smaller pension funds

Bond managers prosper as pension hedging booms

BlackRock, Insight Investment and Canadian fund manager BMO are among the select group of bond managers profiting from a continuing surge in liability-hedging contracts for UK pension schemes.

The total value of pension promises covered by these smart bond mandates grew by 6% during 2017, to £965bn, according to a survey of the market by pension consultancy XPS. That is around half of a total UK pension liability of £2tn.

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