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A motivating factor

The introduction of FTK has seen Dutch pension provider ABP execute a U-turn on its previous dislike of liability-driven investment (LDI) - but others have taken to the concept more willingly. What are the different motivations to the use of derivatives, and how successful have they been? Aaron Woolner reports

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With a coverage ratio of 150% and a parent company which is the second largest global player in its sector, the pension scheme for the Dutch arm of British American Tobacco (BAT) could be expected to take a relaxed approach to the imposition of the FTK regime on 1 January this year.

But in an example of the maxim, "Life is what happens when you are making other plans," the move to FTK compliance

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