Baring Asset Management has launched an agriculture fund in response to growing interest in the sector from its clients, said fund manager Jonathan Blake.

The fund will invest in "companies that are involved in agriculture from farm to fork," said Blake.

Baring already has a resources fund, which invests in energy, metals and agriculture, but decided to launch an agriculture-specific fund after increasing its allocation to that sector as food investment came to the fore, said Blake.

The agricultural sector is expected to have a brighter outlook than energy and metals in the short term, as its demand usually follows population growth, rather than economic cycles.

Companies the fund is investing in include agricultural group Monsanto Co. (MON) and fertilizer producer Potash Corp. (POT) Blake said anything from seed producers and grain handlers, to food manufacturers and retailers, could provide investment opportunities.

Baring hopes to raise up to GBP1 billion investment in the fund. The fundraising period ends Thursday.

-By Sarah McFarlane, Dow Jones Newswires; +44 (0)20 7842 9327; sarah.mcfarlane@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary. You can use this link on the day this article is published and the following day.