Morley Fund Management has won the mandate to run a strategic asset allocation overlay for the £200m (€286m) pension fund of Go Ahead, the public transport company, with a remit of boosting returns by 1% a year. Go Ahead hopes the appointment will help to reduce its £60m pensions deficit.

The mandate is the first asset allocation brief that Morley has won for an external client using specialist investment managers. The company manages £75bn in overlay strategies for Aviva, Go Ahead's parent, and other clients that use balanced managers. It has added returns through its tactical asset allocation programme in each of the last six years it has been in operation.