Mercer Global Investments (MGI) has seeded Invesco's new multi-strategy hedge fund.
The fund will manage the multi-strategy hedge fund component of MGI's manager line-up.
MGI has targeted a 10 per cent allocation to Invesco's fund within its alternatives asset class, with the balance invested across 11 other strategies.
Invesco's Multi-Strategy Fund is an absolute-return product with a performance target of 8 per cent above cash.
It combines four broad strategies: United States market neutral, European market neutral, global tactical asset allocation and diversified fixed income.
"The fund was developed from investor feedback. Our investors were looking for a product that would combine Invesco's investment strategies from around the world," Invesco chief executive Mick O'Brien said.
MGI chief investment officer Russell Clarke said he chose Invesco's alternatives fund because its underlying strategies would result in attractive diversification to its multi-manager mix.
MGI also acknowledged the high level of transparency inherent in Invesco's investment process.
"In its due diligence process MGI was impressed with the high level of transparency in the investment process and the thought that had been put into the portfolio construction process," Clarke said.
