Aviva Investors has launched a rival to the Pru Funds range.
The Aviva Smooth Managed fund is available through the Pension Portfolio service on Aviva’s adviser platform.
The fund is designed to deliver growth over the medium to long term, employing a 'smoothing' process to shelter clients from some of the impact of adverse market movements.
The fund invests in a broad range of global assets, which can change over time, aiming to keep the investment risk in line with a moderately cautious risk profile.
The new fund is suitable for advisers who have clients moving into income drawdown where smoothing can help manage the risks associated with taking an income in a volatile market.
Clients approaching retirement may also prefer to see a smoother return in the final few years leading up to their retirement date, according to Tim Orton, chief executive of Aviva Investors Adviser Platform.
Mr Orton said: ““In our last Adviser Barometer research, economic uncertainty post-Brexit was one of the biggest concerns for advisers with 78 per cent saying they were most worried about market volatility as the UK goes through the process of leaving the European Union - twice as many as 12 months ago.
"At the same time, interest rates available on cash deposits remain at historically low levels.
“We are launching the Smooth Managed fund in response to adviser and customer demands for investments that have scope to deliver better than cash returns but with fewer of the ups and downs that are usually associated with more traditional investments."
The fund management charge is 0.65 per cent.
Patrick Connolly, head of communications at Chase De Vere, said: "Prudential was the dominant force in with profits investments and is now the market leader in smooth managed funds.
"There is demand for these funds from investors concerned about market volatility and this new launch is especially welcome if it creates more competition, which could lead to better value products for clients."