Invesco Perpetual’s Paul Read and Paul Causer were reappointed as the managers of Invesco Perpetual Enhanced Income (IPE) on Wednesday, after a major dispute with the board over fees was resolved.
The newly agreed pay structure will see Invesco receive 80bps on the first £80m of net asset value, 70bps on the next £70m and 60ps thereafter.
The performance fee, which together with ongoing charges saw Invesco receive 2.16 per cent in management fees, will be removed and the notice period reduced to three months.
As a consequence of the agreement, chairman of the board Donald Adamson and chairman of the management committee Richard Williams announced they will stand down with immediate effect, a month before a general meeting in which Invesco intended to remove both from the board.
Chairman of the audit committee Peter Yates will lead the board until a replacement is found, which is expected to occur in September.
The news comes after Invesco announced it would step down as manager of the £120m investment trust in April after what it described as contractual arrangements.
Trust chair Adamson had previously said that the £12.3m the trust paid to Invesco between 2007 and 2017 was not in line with its size.
This has been a protracted and longstanding disagreement with Invesco initially not cooperating with a review of its fees, before agreeing and subsequently backing out of new terms.
It appeared the two sides were at an impasse when Invesco Perpetual resigned as manager of the closed-ended fund.
Previously Read and Causer have managed the fund since 2004 with Rhys Davies joining them in in 2014.
The managers said in a statement: "Managing the IPE portfolio has always been important to us and we are proud of the trust's long-term track record.
“We are pleased that both parties were able to agree a constructive solution that is in the best interest of all shareholders."
IPE has returned 19.15 per cent in the past three years, underperforming the FTSE All Share while outperforming the only other fund in the IT Global High Income sector, Henderson Diversified Income Trust, but year-to-date it has made a loss of nearly 10 per cent.
Over the 10 years from 2007 to 2017, the trust returned 83.59 per cent, beating the FTSE All Share by 11.79 percentage points.