Invesco, Trinetra IM strategies to wind up

After failing to scale, Invesco's True Balance Fund and Trinetra Investment Management's emerging markets strategy are set to wind up.

The multi-asset Invesco True Balance Fund, which had about $37.5 million in assets, will terminate on June 4. Application and withdrawal requests were suspended on May 1.

Invesco Australia, the responsible entity of the fund, said: "Following a review of the fund, Invesco has determined that it remains below the scale required to support its ongoing operation to achieve its intended purpose. As such, we consider it is in the best interest of investors to wind-up the fund."

Incepted in 2015, the fund invested in equity, bond and commodity markets via derivatives.

The fund aimed to achieve a positive total return over a market cycle with a low-to-moderate correlation to traditional financial market indices, targeting a gross return of 6% p.a. above the Bloomberg Ausbond Bank Bill Index with 8% p.a. target portfolio volatility.

It returned 22.1% p.a. in the year to April and over a 10-year period achieved 3.2% p.a. while its benchmark made 3.7% and 2.2% respectively.

Separately, the Trinetra Emerging Markets Growth Trust will wind up on June 15.

Perpetual's The Trust Company, as responsible entity, and Trinetra Investment Management, as the investment manager, decided to terminate and wind up the fund due to "insufficient scale to remain economically viable without the management fees and costs charged to members in the fund becoming disproportionately high as a percentage of the net asset value of the fund."

"We understand this decision may be disappointing; however, we have thoroughly assessed the impacts for members and believe this course of action is in their best interests," they told investors.

London-based Trinetra is an emerging markets specialist. The fund launched in early 2019 and is a sub-fund of the Trinetra UCITS ICAV.

Some of the of holdings as at March were Gentera, Tencent, Alibaba, MercadoLibre and Contemporary Amperex Technology. The fund had about $249 million in funds under management.