Uncovering income opportunities in the high yield bond market
Please read the Investment Risks and Footnotes at the bottom of the page.
Invesco Bond Income Plus Limited was previously City Merchants High Yield Trust Limited.
The Company aims to obtain capital growth and high income from investment, predominantly in high-yielding fixed-interest securities.
Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Directors' Report contained within the Company’s Annual Financial Report.
Invesco Bond Income Plus has once again been recognised as the best investment trust in the ‘Bonds – Active’ category in AJ Bell’s annual investment awards. This is the second year in succession BIPS has claimed the award, after being nominated by financial advisors and receiving the most votes from private investors.
The Company has maintained a consistent level of dividend for several years. A simple maxim underpins this success: we will only invest when we think we are being adequately rewarded for doing so.
Today, the portfolio is invested across three broad areas of the high yield bond market. Income generators form the core of the fund, made up of bonds issued by non-financial companies that pay a high level of income to compensate for their leveraged balance sheets. Next, banks and subordinated financials - bonds in this area of the market continue to pay a premium over other areas of the market. Finally, credit intensive bonds, which are bonds that have come under price pressure, but that we believe have the right plans in place to turn around their business.
Rhys Davies, fund manager, outlines why the Invesco's Bond Income Plus portfolio has shifted to higher credit quality bonds, including his reasons for concerns over lower-quality credit.
Over the last two years it’s become much easier to earn an attractive level of yield from bonds. Rhys Davies looks at how the improving opportunity set has boosted the level of income in the Invesco Bond Income Plus portfolio.
We believe holding bonds in an investment trust provides several unique characteristics that should be appealing to investors. One such characteristic is a trust’s ability to borrow (often referred to as ‘gearing’).
Find out what investment trusts are and how to invest in an investment trust with Invesco's introduction. Read more to get started today.
For more than 30 years Invesco has been associated with responsible investing, and today delivers this through equity, fixed income and multi-asset strategies.
| Launch date: | May 1991* | |
| ISIN: | JE00B6RMDP68 | |
| AIC sector: | Debt – Loans & Bonds | |
| Announcements | Dividends payable | Annual General Meeting |
| Annual financial report March/April | Interim dividends May, August, November, February | AGM 27 June 2023 |
| Half-yearly unaudited financial report August | ||
| Year End 31 December |
| 30.09.19 30.09.20 |
30.09.20 30.09.21 |
30.09.21 30.09.22 |
30.09.22 30.09.23 |
30.09.23 30.09.24 |
|
|---|---|---|---|---|---|
| Ordinary Share Price | -4.2 | 15.4 | -18.2 | 20.5 | 11.9 |
| Net Asset Value | 3.0 | 12.4 | -15.1 | 9.7 | 13.8 |
FundCalibre - BIPS / Elite Rated Funds (view on FundCalibre website)
All directors are non-executive and, in the opinion of the Board, are independent of the Manager.
Should you wish to contact a member of the Board of Directors, please email the Company Secretary.
When you interact with us, we may collect information about you which constitutes personal data under applicable laws and regulations. The Trust privacy notice explains how we use and protect your personal data.
* The business of the Company was originally launched in 1991. It has been maintained through two corporate reconstructions, the most recent of which was in 2012 when the business was transferred to the current corporate entity in Jersey. The performance data shown in the factsheet incorporates the performance of the predecessor entity for the period to 31 March 2012 as well as the current Company from 2 April 2012. With effect from 19 May 2021, the Company was enlarged by the merger with Invesco Enhanced Income Limited by way of a contractual scheme of reconstruction, following which the Company changed its name to Invesco Bond Income Plus Limited.
The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
The portfolio has a significant proportion of high-yielding bonds, which are of lower credit quality and may result in large fluctuations in the NAV of the product.
The product may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events.
The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall.
The product uses derivatives for efficient portfolio management which may result in increased volatility in the NAV.
Invesco Bond Income Plus Limited is regulated by the Jersey Financial Services Commission.
This is marketing material and not financial advice. It is not intended as a recommendation to buy or sell any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication.
Views and opinions are based on current market conditions and are subject to change.
For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available in the literature section.
Further details of the Company’s Investment Policy and Risk and Investment Limits can be found in the Report of the Directors contained within the Company’s Annual Financial Report.
