Mark Barnett’s Invesco Perpetual Select Trust cuts fees


#1

The Board of the £135 million trust is the latest in a long line of trusts to reduce management fee in response to pressure as a result of RDR. The ne
[See the full post at: Mark Barnett’s Invesco Perpetual Select Trust cuts fees]


#2

What weird set-up. How on earth did that come about. Some of the parts of this trust are tiny winy.

It just seems a little bit too complicated for its own good.


#3

I think it was designed for the benefit of IFAs/Wealth managers @WickedInvestor. The intention was to make it easy for them to shift between the liquidity part of the share class as they saw fit.

I am not sure it works as well now though.


#4

It is unusual, I cant quite get my head around it.

As Barnett has so many unit trusts and investment trusts I don’t understand why his part of this trust isn’t merged in to one of his other trusts. It’s cut costs for investors because fixed costs would be shared amongst a wider pool of people.


#5

As Casper says, the separate asset pools allows an investor to periodically swap between them as they see fit, and without triggering a capital gain event. So if the investor wanted to hold cash (or near-cash) for a while then they could do so without worrying about CGT. This might be of more interest to larger investors who have fully utilised their ISA/SIPP allowances, but whether it is beneficial for many is moot.

There are trusts with similar structures, such as JP Morgan Elect and JPM European. Also, trusts that have share classes in different denominatons.

+++

@ChrisBu, I don’t see the trusts being merged. Perpetual Income & Growth has a mandate to grow its income, whereas IVPU does not: infact, the dividend was cut this year. Both Keystone and Edinburgh employ Invesco as the investment manager, and administration and secretarial services, but neither trusts ‘belong’ to IP for them to decide to merge. The boards of these trusts could also decide to move the management to a different company at some point in the future.

Where it would make sense (to me) to merge funds would be with the IP Income and High Income OEICs. They do look to be doing largely the same job, and both are under IP’s control. Moving to quarterly, or perhaps even monthly dividends would cater for the different distribution dates between the two.