London-based asset manager Threadneedle Investments has launched a new fund which aims to deliver equity-like returns but with less volatility.

The Threadneedle Dynamic Real Return Fund seeks to give returns of 4 per cent over a three- to five-year investment horizon and will managed by Toby Nangle, head of multi-asset allocation, the firm said in a statement.

The long-only, unleveraged fund will invest across a range of asset classes including equities, fixed income, commodities, property, cash and alternative investments.

Nangle will be supported by head of managed funds, Alex Lyle, and the asset allocation strategy group, which includes chief investment officer Mark Burgess, head of equities Leigh Harrison, head of fixed income Jim Cielinski, head of global equities William Davies, and head of currency Matt Cobon.

In other news, Threadneedle has appointed Matthew Evans to the role of UK small-cap fund manager, starting in October 2013.