A UK pension fund is implementing a liability-driven investment model even though many of its counterparts have held their fire.

The £250m (€372.5m) Cookson Group pension scheme, which had a £96m deficit at June 30 last year, has opted to diversify its equity risk using equity derivatives and alternative asset classes. It has also established a portfolio of interest rate and inflation-linked swaps, following a strategic review of risk and return.