Gloves are off as Invesco Perpetual launches a rear-guard action to defeat their enemies.
How can they get away with charging a high base fee and, and, and a performance fee for a bond fund. That’s daylight robbery.
Bet they don’t get away with high fees like that on their unit trusts.
Good luck to the Board and take a hike Invesco Perpetual!
Invesco could this vote as they and their two supporters have a reasonably large shareholding but I hope they lose. They should come back to the negotiating table. Dropping the performance fee would mean they still have a large management fee. Maybe they could try to grow the trust instead.
The problem with Invesco perpetual is they don’t make much effort to promote their investment trust business, I think they prefer to concentrate on their OEICs because they’re more compliant. I think they’re missing a trick here.
I’m a shareholder In Enhanced income, principally because it offers a high dividend all be it with anaemic growth.
I will be voting with the Board however because I think the performance fee is inexcusable in the context of the overall returns generated here. The management fee is high enough and I would personally be context with leaving the management fee as it is but axing the performance fee.
If this is not agreeable to Invesco Perpetual the Board should proceed to hire a new manager.
InvPert could instead focus on growing the trust which is remarkably small, which generate higher fees for them as an overall percentage of the assets.
They should take their que from Scottish mortgage who I’ve just been reading about here as they celebrate reducing their ongoing charge over the year by 16%.