View more on these topics

‘Sudden resignation’ by Invesco in fight over fees leaves trust hunting for new manager

The Invesco Perpetual Enhanced Income investment trust is weighing up bids from new managers after Invesco unexpectedly resigned from the mandate over a dispute around fees.

The board of Invesco Perpetual Enhanced Income Limited says it has received “a significant number of highly credible proposals” from investment managers wishing to take over the trust.

It has narrowed down four proposals in particular which it will investigate further. The pitches have been kept anonymous, but proposed charges range from 0.35 per cent NAV to 0.65 per cent NAV. Figures as high as 0.83 per cent were proposed by those that did not make the top four. No manager asked for a performance fee.

Management and performance fees paid to Invesco for the 2017 financial year amounted to 0.93 per cent, with around £12.3m paid to Invesco between 2007 and 2017.

While most managers showed significant experience with listed closed-ended investment companies, others had none, and fixed income assets at the companies submitting the top four proposals ranged from £11bn to $370bn (£279bn).

Invesco Perpetual Enhanced Income Limited says: “Every proposal received would result in lower management costs than those currently incurred by the company and indeed almost all the fee proposals are lower than those that the board thought it had agreed with Invesco before their sudden resignation.

Investment trusts get a bad press – but are they worth a look?

“The board intends to progress the process of appointing a new manager, and notwithstanding their previously indicated refusal to participate in an open and competitive process, the board would consider a revised fee proposal from Invesco in the context of a withdrawal of the requisition notice.

“The board believes the responses received fully vindicate its position that significantly more attractive management terms are available in the market from managers of comparable quality and standing to Invesco.”


Equity release a growing market for solicitors – Pru

Research from Prudential conducted among UK private client solicitors shows a growing need for advisory work in equity release. Twenty nine per cent of solicitors believe demand for legal guidance in the area of equity release will increase in the next five years and over the last two years, one in four (26 per cent) […]


Moneyhub signs integration deal with Intelliflo

Technology provider Moneyhub will now use Intelliflo’s application programming interface for its advisers. Integration onto the API will allow for advisers to access real-time information of client’s managed pensions and investments. Advisers will also be able to link investments they manage and see clients’ spending and savings patterns. The Big Interview: Moneyhub chief executive on […]

Offshore amnesty could bring in 5bn

The Government’s amnesty for UK taxpayers with undisclosed offshore bank accounts could net the Treasury up to 5bn.


Claire Trott: Can pension contributions paid in error be refunded?

Refunds are not always possible, so what can be done to unwind the overpayments? I am often asked if pension contributions paid in error can be refunded to the client or their employer. In most cases, the answer is no, so we need to be sure that any contributions paid are made and calculated correctly. Let’s […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment