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Schroder Investment Management is bolstering its alternative solutions range with the launch of a Gold & Metals fund.

The Luxembourg-domiciled vehicle, which is due to launch on 7 July, will be managed by Robert Howell, who already runs the $2.9bn (£1.4bn) Commodities fund, and co-managed by analyst Paula Bujia.

The new fund will sit alongside Schroders' existing alternatives funds such as the $5.3bn Agricultural and $669m Global Energy funds.

It will be structured to have futures, physically backed ETFs and equities.

The benchmark will be a composite, with 25 per cent comprising the Rogers Gold index and 75 per cent made up from the Rogers Metals index, which contains a weighting of 10 per cent in gold.

It will have a minimum investment of £1000 and the managers will be able to invest up to 24 different metals with a minimum of 15.

Neil Bridge, head of sales at Schroders, said: "Structurally there's a long-term argument for investing in metals. There are factors such as emerging markets and infrastructure demands driving the asset class.

"Gold is also extremely attractive as it is non-correlated and can be used to hedge against equities."

The fund will also have the ability to make use of the futures market in order to reduce exposure to market volatility while gaining exposure to rising prices in metals such as zinc, copper and aluminium.

For both gold and silver exposure it will use physically-backed ETFs.

Mr Bridge added: "More and more we are dealing with investors who want to unbundle commodity assets and buy individual components.

"If they don't want to make a decision they can buy into our commodities fund, but others can gain great exposure to metals through the new vehicle."

Despite Schroders' optimism for the asset class, Adrian Shandley, managing director of Premier Wealth Management, said he was cautious on commodities, and questioned whether the asset class could be heading for a bubble.

"Gold and oil have been shooting up, but you can always tell the extent of a bubble by the amount of funds being launched in that sector.

"The fund will do well, but if we go into recession demand for metals will completely fall off."

Fund Facts:

AMC: 1.5 per cent

Performance Fee: 10 per cent