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U.K. Pension Funds Add Inflation Hedges on BOE Stimulus Outlook

The U.K. pension funds of Royal Bank of Scotland Group Plc, aerospace components maker GKN Plc and the London Pensions Fund Authority have bought inflation-linked bonds and derivatives to limit the impact of salary and price increases in their defined-benefit obligations.

RBS purchased 2.9 billion pounds ($4.4 billion) of notional inflation swaps and 1.1 billion pounds of inflation-linked gilts last year to hedge its 25.6 billion-pound defined-benefit pension fund, according to its annual report published on March