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The new fund will be launched on 17 September, and like all other Pictet funds, it will be an equity-based product.

During the current downturn, a number of companies have launched similar funds, as timber has historically offered low volatility and minimal correlation with equities. Investors have also been attracted by the general rise of commodity prices.

Another advantage for investors includes tax breaks. Forestry investment is not liable for income or capital gains tax and so has increasingly caught the eye of high net worth investors, especially as other tax-efficient investments have been closed.

Radicle Projects recently launched an investment company focusing on timber plantations in Australia and the Asia Pacific region, while the closed-end Phaunos Timber fund migrated to the London Stock Exchange’s main market in June, aiming to raise $33m (£17m) with a new share placing.

The IPD UK Forestry index generated a return of more than 30 per cent last year, eclipsing returns from all the other main asset types.

Gavin Haynes, managing director at Bristol-based IFA Whitechurch Securities, said: "For us and our clients, a timber fund is a bit too specialist. But I am not surprised they are launching one with the recent performance of commodities, and people are looking to exploit that in different ways."

"Exposure to commodities and natural resources is good, but if it's too specialist, there's a risk of making no money. We would invest in a natural resources fund, as that gives you a wider spread."