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Investec Asset Management is broadening its commodities offering with the launch of the Investec Enhanced Natural Resources fund.

The commodity and resource equities fund has a total return objective, and aims to hit this goal through a combination of top-down fundamental analysis of commodity securities with bottom-up stock picking.

The fund will comprise a diverse portfolio of more than 30 commodities and 800 resource stocks spanning the whole sector, including companies involved in energy, metals and mining and agriculture.

The Ucits III-compliant fund, which will be managed by Bradley George and George Cheveley, can take both long and short positions.

Both Mr George and Mr Cheveley have been running an institutional version of the retail fund for just over a year.

Mr George said he hoped to bring the successful techniques of the hedge fund world to the UK retail market.

He added: "The fund is founded on the belief we are in a long-term secular growth cycle for commodities, driven by demand from both emerging economies and the developed world."

David Aird, managing director of UK distribution for Investec, said the fund differed from many of the other commodities products that had been launched recently. Clients would welcome a fund with a total return objective, which provided them with some protection in falling markets, he added.

"Mr George joined Investec two years ago, and straight away we looked into setting up a fund like this that could utilise hedge fund skills for the retail market," Mr Aird said.

"The fund is unique, in that it can invest in so many different commodities, such as mining and cattle.

"The main thing is that we are modernising people's ability to invest in commodities and further developments can be made from here."

The fund follows on from the launch of the Investec Global Commodities & Resources fund, a hedge fund launched by Investec last year.

In February, Investec also took control of its £235.4m Global Energy fund, bringing management back in-house from former managers Guinness Asset Management.

Gavin Haynes, managing director of Bristol-based IFA firm Whitechurch Securities, said: "I'm relatively cautious on commodities, as I am not sure if there is the long-term dynamics to meet demand and supply."

Fund Facts

AMC: 1.5 per cent

Initial charge: 4.5 per cent

Trail commission: 0.5 per cent