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Investors should consider Managing Partners's Traded Policies fund an IFA has claimed in the wake of a dramatic increase in its assets under management, although security may still be an issue.

The boutique manager's product has grown by almost £60bn in the last 12 months, up from £138m on 15 September 2007.

Managing Partner claims this rise in investment has come from some major companies, including five of the worlds top 20 largest banks and half the UK's top 210 largest life offices.

Marlene Shalton, managing director of Swansea IFA Chambers Morgan James, said she would recommend the fund as "a small part of an overall portfolio".

She said: "It is an alternative asset class to equities and at a time of stock market volatility it is one that will give you consistent returns.

"But it is not regulated by the FSA, so it does not quite have the security that some investors might require in the current climate. You cannot make any claims to the ombudsman."

Jeremy Leach, managing director of Managing Partner, said: "Investors have been forced to look at alternatives to equities after more than a year of declining returns.

"The volatility just keeps continuing and investors do not see any indication of when that will end. In such circumstances, an asset class that offers the prospect of steady annual returns of circa eight to 10 per cent a year year-in year-out is impossible to ignore."