Shareholders in the Invesco Perpetual Select Trust have decided to ditch Fauchier Partners in favour of Invesco manager Scott Wolle to run the hedge portion of the multi-asset trust.
Fauchier Partners has underperformed with the hedge fund portfolio, known as Balanced Risk, posting a 13.5% loss over the past 12 months and a 9.35% loss in NAV terms, while the FTSE World was down 0.8%.
This led shareholders to vote in favour of replacing Fauchier as manager of the hedge portfolio in favour of Wolle, who is CIO of Invesco's Atlanta-based global asset allocation team. The trust is currently trading on a 13% discount to net asset value.
The trust, which enables shareholders to tailor their asset allocation to reflect their market views by having the opportunity to convert between share classes every quarter. Alongside hedge fund of funds, investors can gain access to cash-plus strategy, UK equities and global equities strategies.
New manager Wolle will adopt a risk parity strategy in the porfolio, replicating the strategy he uses for the Invesco Balanced Risk fund, which has posted an annualised return of 13.8% since the fund was launched in June 2009.