Shareholders in UK-listed Dexion Trading have accepted a proposal to change the fund's investment manager rather than wind it up, as the listed fund of hedge funds sector passed its first stern test in corporate governance.

The fund's board of directors said votes representing 41% of the shares had been cast in favour of the proposal, which called for the appointment of Permal as investment manager in place of FRM. The board said it expected the change to go through as a result.