The Henderson Private Equity Investment Trust has proposed a change in investment strategy that will eventually lead to the winding-up of the fund.

In a statement from the investment trust's board, it said the new strategy would mean the end of all further investment and include the return of all cash to investors.

According to the board, all investment other than existing commitments would be ceased and steps would be taken to realist all the assets in the trust's portfolio.

The decision was taken as the trust's share price continued to trade at a discount and a situation the board considered was unlikely to be remedied in the short to medium-term.

The trust came to be managed by Henderson following its acquisition of New Star Asset Management in 2009. According to the trust, steps to raise new funds and attract new investors had not succeeded.

The realisation process is expected to last two years, according to the board.