The pension fund of telecommunications company, KPN, has raised its strategic interest hedge to 100% from 70%, IPE reports. Stichting Pensioenfonds KPN has also introduced swaptions to minimise the risk of a very low funding ratio. The amount of swaptions represents 50% of the hedge, while the remaining is covered by swaps and fixed income investments. Interest swaps and swaptions contributed 3.6% to the pension fund’s result of 10.2% in 2010.

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