Invesco team reappointed to Invesco Enhanced – The board of Invesco Perpetual Enhanced Income Limited (“IPE”) has reached a resolution of IPE’s management arrangements.
Following discussions between the board and Invesco Fund Managers Limited (Invesco), and following a process to consult with major shareholders, the board has decided to reappoint Invesco as the manager of IPE. Paul Read and Paul Causer will be back in charge.
This is being done on a revised management fee basis of 80bps on first GBP80m of net asset value, 70bps on next GBP70m and 60bps thereafter. These terms reflect the previously agreed arrangements between the parties. The existing performance fee arrangements will be removed and the notice period reduced to 3 months. These new arrangements will take effect immediately and will be deemed to have had effect from 1 January 2018.
At the meeting planned for 20 July 2018, funds managed by Invesco have undertaken to abstain from voting on the resolutions proposed. Invesco has also clarified to the board that “whilst it has an overriding duty to exercise votes attaching to securities in client portfolios in the interests of those portfolios, it would not normally anticipate voting in respect of future IPE director elections and re-elections.”
Board changes
Donald Adamson, the chairman, intends to stand down with immediate effect. A replacement is being sought but, in the interim, the board will be led by the chairman of the audit committee, Peter Yates.
Richard Williams, chairman of the management engagement committee, separate to this resolution, has informed the board of his decision to stand down as a director of the company with immediate effect.
[QD comment: having made such a fuss, it might be surprising that the board has caved and reappointed Invesco, well ahead the vote in July. IPE’s share price is up 5.7% on the news, pushing it back to a 4.3% premium. The fee cut will be welcome but we aren’t sure how the board and shareholders have reconciled the issue of the superior performance track record that the board’s choice of manager is reported to have delivered. We also don’t know what the outcome of the FCA’s intervention is.]
IPE : Invesco team reappointed to Invesco Enhanced