UK – News and data group Reuters says it plans to “de-risk” the investment strategy of its UK defined benefit pension plans.

Although no details were disclosed, the firm said it plans to make a fuller announcement on proposals it is currently discussing with trustees in a few weeks time.

The London-based firm said: “Reuters is in the final stages of constructive discussions with the trustees of its UK defined benefit pension plans.

“These discussions include proposals to enhance the security of the plans by substantially funding the pension deficits in this financial year as well as initiatives to de-risk the investment strategy and reduce Reuters exposure to future asset and liability risk.”

The package of measures also includes a once off payment to cover a discretionary inflation increase for pensioners in 2006.

The company recorded a £265m deficit on its 2005 balance sheet.

Elsewhere, the pension scheme of retailer Sainsbury has adopted to a liability-driven investment model by creating a £1bn swaps overlay portfolio, according to a report on AFX News.

It said the firm has used the £3bn pension assets to fund a swaps overlay programme with Morgan Stanley and UBS. State Street Global Advisors had been appointed to manage the swaps for scheme, the report added.

Yesterday, rival Tesco said its £3bn scheme returned 20% in 2005.

It said the fund's strategy is to invest in 50% equities, 20% bonds, 10% property and 20% alternative asset classes, including private equity and commodities.