Morley, an asset management company, has launched Diversified Strategy Fund to provide smaller pension funds with access to a lower risk solution without compromising longer-term returns.

The Diversified Strategy Fund will aim to generate capital growth through investment in a wide range of assets including conventional assets such as equities and bonds; and alternative asset classes like infrastructure, currency and hedge funds. It also draws on the full range of modern investment tools, including the use of derivatives and portable alpha techniques.

Paul Moody, head of investment development at Morley, said: Recent market volatility serves to highlight the importance of asset allocation, with academic research suggesting that 90% of the variation in pension scheme returns can be attributed to asset allocation.