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Scottish Widows Investment Partnership's multi-manager team has made additional investments to increase the focus on capital preservation within its diversity fund during difficult market conditions.

The new investments within the Swip Multi Manager Diversity fund include bond exposure through M&G Optimal Income, PIMCO Global Bond and Julius Baer Absolute Return Bond and increased global equity exposure through CF Odey Opus. The team has also established an overweight position in hedge funds with purchases of FRM Diversified Alpha and Brevan Howard Global. It has added exposure to infrastructure by investing in the First State Global Infrastructure fund.

The Swip Multi-Manager Diversity fund was launched in December last year and invests in a wide range of asset classes and geographic regions with the aim of achieving long-term capital growth.

Mark Harries, head of multi manager for Swip, said: "Infrastructure is an attractive asset class, it has the capacity to generate strong and reliable returns and is more recession-proof than other asset classes. We selected the First State fund because it invests in large cap companies listed in more mature economies and we expect it to be less volatile than other infrastructure products. Our additional fixed income exposure includes funds with full Ucits III powers which have the flexibility and manager skill and experience to help deliver good risk-adjusted returns in the future.

"We typically have a low turnover on our funds, and we expect that approach to remain in the longer term. However, in a turbulent market, it is more important than ever to be broadly diversified. We are constantly researching new opportunities in the market to find funds which reflect our cautious approach to preserve investors' capital in tough markets and these new funds all met our stringent criteria and have an excellent long-term track record."