Invesco Perpetual Enhanced Income updates on investment manager search – In April 2018, Invesco Perpetual Enhanced Income (IPE) were served notice by their investment manager, Invesco Fund Managers Limited that they were to step down – click here to read more. In May, the company (IPE) received requests from some of its largest institutional shareholders to hold an extraordinary general meeting – click here to read about this announcement.
Further to these announcements, the company has reported that it has “received a significant number of highly credible proposals to act as investment manager for the company”.
From the company’s announcement, it would appear that four fixed income fund management groups (who are not named) have submitted proposals to run the portfolio of IPE. The four firms, which manage fixed income assets of between £11 billion in UK assets and and US$ 370 billion total AUM, are offering to run the portfolio for between 0.35% of NAV and 0.65% of NAV. The board point out that that these are all lower than the offer made by Invesco to the company of 0.77% of NAV before it resigned as manager. None of the proposals include a performance fee, which is one of the targets that the board had in its sights.
The board also points out that each firm has credible performance records in the fixed income sector and the selection process will not focus on fees alone. The pitching process will begins soon, despite the request for an EGM. No time line is published as to when this is to be completed.
IPE : Invesco Perpetual Enhanced Income updates on investment manager search