The launch of this commodity and resource equity fund follows on from the successful commodities hedge fund, the Investec Global Commodities and Resources Fund, which delivered returns of 37.64 per cent in its first year, to 31 March.

The new fund has a total return objective and aims to deliver its long-term investment goal through a process that combines the fundamental analysis of underlying commodity securities with a bottom-up stock-picking approach.

It is daily traded and can access over 30 commodities and 800 resource stocks spanning the whole commodity spectrum, including companies involved with energy, metals and mining and agriculture.

The term ‘enhanced’ refers to the fund’s UCITS III powers, which enables it to take both long and short positions in the portfolio. This has the potential to protect investors against downside market movements as well as to take advantage of the upside, increasing the potential for a better risk/return balance.

Bradley George, Investec Asset Management’s head of global commodities and resources, and co-portfolio manager of the new fund, says, ‘The Enhanced Natural Resources Fund is founded on the belief that we are in a long-term secular growth cycle for commodities driven by demand from both emerging economies and the developed world.

‘This fund seeks to offer our UK investors the opportunity to access an enhanced commodity solution to those already available in the market at present. The widest opportunity set, including metals, mining, energy and agriculture, coupled with the ability to go short, should help to enhance our clients’ returns. In essence, we are bringing some of the techniques that have made hedge funds successful to the UK retail market.’

The minimum investment in the fund is £1,000. For more information visit www.investecassetmanagement.com