Industry split as Invesco Perpetual Enhanced Income trust spat intensifies

'Clearly out of line'

Investment trust commentators are divided on what action is in the best interests of shareholders in the £123m Invesco Perpetual Enhanced Income trust (IPE) as the battle intensifies between its board and manager Invesco Perpetual following a disagreement on fees, with some believing there is "an important piece of information missing".

On 23 April, Invesco gave 12 months' written notice to the board of the trust, which has been managed by fixed income stars Paul Read and Paul Causer since 2004, stating it would be resigning over "contractual arrangements (including in respect of fees payable)".  Following this, the board initiated the process to receive proposals from potential new managers through adviser JPMorgan Cazenove. However, on 22 May, the board then received a requisition to call a general meeting by 22 July on behalf of shares the board understands are managed by Invesco (16.9%), GAM (3.9%) and Practical ...