London Pension Fund Authority, with GBP2.7 billion (USD4.89 billion) is holding a meeting on Thursday to discuss whether to pursue its interest in derivatives. Amanda Walker, director of finance and investments, said if the trustees agree it will review the instruments and make a decision in the summer.
The move is part of a trend among pension funds to look at alternatives to traditional equity and fixed-income products, prompted by deteriorating assets and increasing liabilities.
Walker listed credit-default swaps, collateralized debt obligations, interest rate swaps and equity-linked products among the instruments that any review would study.
