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IPE Invesco Enhanced Income Limited

73.80
0.00 (0.00%)
18 Mar 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Invesco Enhanced Income Limited LSE:IPE London Ordinary Share GB00B05NYM32 ORD 5P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 73.80 72.80 74.80 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Invesco Enhanced Income Share Discussion Threads

Showing 151 to 173 of 175 messages
Chat Pages: 7  6  5  4  3  2  1
DateSubjectAuthorDiscuss
24/5/2021
07:55
There is one now :-)
cwa1
24/5/2021
07:50
Has a new thread been set up for IPE / CMHY Now BIPS
panshanger1
21/5/2021
11:11
There you go, transformation complete with the renaming of CMHY to Invesco Bond Income Plus (BIPS).

My service provider in this case AJBell, as you say they seem to execute corporate transactions and to credit dividends promptly and with the customer in mind, compared to HL for example who it seems like to "process" our cash for a while as if to help their own overnight liquidity.

Historically CMHY used to trade at a modest premium to NAV, until the covid crash. NAV is now largely restored which signals the quality of the debt assets and faith in Invesco, but the share price is lagging at a slight discount. A small premium is very useful for a fixed-income trust, it means they can issue shares from time to time and make immediate small net gains when making further investment as opportunities arise.

Since this merger adds scale, reduces costs and from a CMHY perspective increases the yield by 10% I would imagine demand will be high for BIPS. Hoping for a small premium to develop over time. In the short term we will need to watch NAV and the use of new issues to meet demand which might combine to restrain the share price from advancing.

I cannot work out how BIPS might perform in an environment with increasing inflation. On the one hand inflation erodes the attraction of high yield stocks which do not have progression, on the other hand high yielders should be appreciated if inflation is higher but contained. Inv trusts which can produce a rising income from real assets, eg property finance and REITs, shipping and logistics, are being tipped as the hedge against higher inflation.

marktime1231
21/5/2021
10:52
ii handled it by the close yesterday - got the dividend too. Has a date been set for CMHY'S name change ?
mister md
21/5/2021
09:36
I use HL and AJBell. I only have IPE with HL, which credited my dividend yesterday but the shares still show as IPE.

Reading these BB over the years out of the mainstream brokers HL, AJBell provide the best service in terms of corporate action. Probably ii next and Barclays go to the bottom of the list

cc2014
21/5/2021
09:00
HSBC InvestDirect. Today, IPE still showing in my portfolio &, as usual, yesterday's dividend has not yet been credited.

Am interested to know how other platforms perform.

HSBC RARELY credit on dividend payment date and I'm getting fed up with them

rahosi
20/5/2021
17:10
According to an announcement by CMHY today its merger with (acquisition of) IPE completed today.

My 0.75p bonus dividend on IPE shares landed this morning, and the IPE holding was wiped.

In exchange we will receive 0.383084 shares in CMHY for every IPE held. This should show up in your portfolio tomorrow if it didn't already today.

Future dividends are expected at the rate of 11p per annum in quarterly instalments of 2.75p per share, the next ex-div in mid July. A yield c. 5.7% at a price around 193p.

At some stage I think pretty soon the combined entity will be renamed BIPS. I wonder if a member on here will set up a BIPS thread now this one is defunct.

marktime1231
07/5/2021
07:19
I have voted for the merger today. The reduction in fees was enough to push me in that direction
cc2014
09/4/2021
11:57
genuinely LOL
stansmith3
16/3/2021
09:39
20000 @ 73.628 is a sale not a purchase
rahosi
09/3/2021
09:00
Cmhy only aye 10 p at the moment, so the 11p would be a slight increase. I can’t work out what the combined price should be.
nerja
01/3/2021
13:04
So for both companies there is a dividend rerating downwards. Forward yield for IPE holders is 6% based on Friday close.
Based on the time frame we should get the usual 1.25p in April plus the 0.75p special as well.

scrwal
01/3/2021
07:50
Proposed Merger with City Merchants High Yield Trust Ltd -

The Board of Invesco Enhanced Income Limited (the “Company” or “IPE”) is pleased to announce that it has signed Heads of Terms with the Board of City Merchants High Yield Trust Limited (“CMHY”) in respect of a proposed merger with CMHY to be effected by way of a shareholder approved contractual scheme of reconstruction (the “Scheme”). The Scheme will be implemented on a Formula Asset Value (“FAV”) for FAV basis.

It is proposed that IPE will be merged into CMHY and the current fund manager of both IPE and CMHY, Rhys Davies, will continue as the fund manager of the enlarged entity which will be renamed Invesco Bond Income Plus Limited (“BIPS”) which, based on the existing net assets of IPE and CMHY, would have net assets in excess of £300 million.

(The above proposals are referred to herein as the “Proposals”.)

The Board believes that the Proposals will enable IPE shareholders to benefit from greater economies of scale that are expected to result from the enlarged asset base of BIPS whilst retaining the same investment approach and manager.

Benefits of the Proposals to IPE Shareholders

The Board believes that the Proposals have a number of benefits for IPE shareholders:

~ Greater scale through the combination of similar investment portfolios: Shareholders will be able to continue with the same fund management company and investment manager with a similar investment style. Rhys Davies currently manages both funds with a good track record and does so with a similar investment objective of high income and a focus on high-yield fixed-interest securities. There is a high degree of overlap between the two investment portfolios.

~ Lower management fee arrangements: In connection with the Proposals, it has been agreed with Invesco Fund Managers Limited (“IFML”) that the management fee will be reduced to an annual amount equal to 0.65 per cent of the total assets less current liabilities to reflect the larger size of BIPS. This is a reduction from the IPE tiered annual management fee with a current blended rate of 0.76 per cent of IPE’s net assets; other costs will be spread across a larger asset base resulting in further economies of scale.

~ Sustainable income level: It is anticipated that the income yield payable to IPE shareholders will be placed onto a more sustainable basis as a consequence of the transaction. In addition, IPE shareholders will be paid a special pre-liquidation dividend of 0.75 pence per IPE ordinary share ahead of the transaction.

~ Increase in scale and improved liquidity: The Board expects that the enlarged entity will benefit from greater liquidity in its shares.

~ Potential for strong share price rating: The Board believes that the above benefits should assist the shares in maintaining a strong rating as the greater scale of BIPS is expected to result in broader market appeal.

The Proposals will be subject to the approval by the shareholders of both IPE and CMHY in addition to regulatory and tax approvals. A timetable and further details of the Proposals will be announced in due course...

Dividend Policy

In connection with the Proposals, it is proposed that BIPS adopt a dividend policy to target an annual dividend of 11.0 pence per share over a three year period following the implementation of the Scheme by way of 4 quarterly dividends of 2.75 pence per share. This is approximately equivalent to an annual dividend of 4.25p per share for IPE shareholders[1]. It is anticipated that dividends will be substantially covered by net income from the portfolio, although BIPS will support the target dividend over this period through the use of revenue and capital reserves if necessary. Thereafter, the Board of BIPS shall give consideration to its ongoing dividend policy, taking into account the annualised net income from its portfolio and the market environment at that time.

This proposed dividend policy has been agreed between the Board of IPE and CMHY in recognition of the differential in income distribution ratios adopted by each of the two companies and is intended to provide a path towards a longer-term sustainable income distribution to shareholders of BIPS.

Whilst the target dividend of 11.0 pence per share would result in a reduction in the annual dividend income for IPE’s shareholders compared with IPE’s historical dividend pay-out, IPE shareholders will be paid a special pre-liquidation dividend of 0.75 pence per IPE ordinary share ahead of the transaction, which is expected to be approximately equal to the reduction for the first year following the merger.

IPE’s dividend has been supported by the use of revenue reserves for several years. As noted in IPE’s 2020 Annual Financial Report, the medium term effects of Covid-19 will likely bring a prolonged period of very low interest rates, in light of which the Board would be reviewing whether the dividend policy is sustainable, balancing the need for current income against the requirement to preserve investors’ capital to earn that income in coming years. The Board of IPE has taken this into account when considering the dividend proposals set out above and believes they will continue to provide an attractive level of income for IPE shareholders over the long-term...

Expected timetable

It is currently envisaged that a shareholder circular and notice of the general meeting setting out the details of the Scheme and seeking shareholder approval will be sent to shareholders in April 2021. The relevant general meetings are also expected to be convened in May 2021.

The Chairman of IPE, Kate Bolsover , commented:

“We believe the combination of the two trusts to form Invesco Bond Income Plus (“BIPS”) to be beneficial and appropriate for IPE shareholders given the greater scale and lower ongoing charges. The Board believes the Proposals will provide an attractive and sustainable level of income for IPE shareholders over the long-term whilst also promoting greater liquidity in its shares and a strong long-term share price rating. The continuation of investment approach which will be led by the same fund manager and fund management house underpins the clear rationale for the merger, allowing shareholders to benefit from the manager’s strong track record.”

speedsgh
26/2/2021
12:13
Dividend Declaration -

The Directors of the Company are pleased to announce the 2nd interim dividend, in respect of the period from 1 January 2021 to 31 March 2021, of 1.25 pence per Ordinary share. This dividend will be paid on 30 April 2021, to shareholders on the register on 9 April 2021. Shares will be quoted ex-dividend on 8 April 2021.

speedsgh
12/1/2021
14:05
Now back to a 0.2p drop which is more realistic.
scrwal
12/1/2021
13:40
5p drop at the moment with no obvious reasons - last nav hadn't changed and no rns release yet.
scrwal
27/11/2020
11:52
Not much to say is there. I don't really care about the split between income and capital but I suspect 90% of investors do and that the share price will fall when it happens based on what's I've seen happen in similar situations.

I don't think IPE is the only one in this situation. NCYF looks far more ready for a cut than here but they don't seem to worry about capital deprecation.


I shall hold my shares here. If they do fall on a dividend cut I'll consider that a buying opportunity.

cc2014
27/11/2020
10:45
That means a cut then.
nerja
27/11/2020
10:31
A warning in today's results that the current dividend policy is to be reviewed...

Annual Financial Report -

"In the current economic and market environment, your Board continues to believe that shareholders place great value on the Company’s consistent dividend stream and has prioritised revenue generation through investment in relatively high-yielding and considered debt positions. Market yields remain at historically low levels but, despite this, your portfolio managers have generated a net revenue return of 4.54p per share. During a period when many companies have been forced to suspend dividends, the Board has maintained the 5.00p annual dividend for the year and a fourth interim dividend of 1.25p per share was declared on 22 September 2020.

The shortfall of net revenue earned versus dividend paid was 0.46p which is the equivalent of £793,000 (2019: £525,000). This has been funded from revenue reserves which the Company has accumulated over a number of years. Our dividend policy has served investors well, but the medium term effects of Covid-19 will likely bring a prolonged period of very low interest rates. With that in mind the Board will be reviewing whether the policy is sustainable, balancing the need for current income against the requirement to preserve investors’ capital to earn that income in coming years."

speedsgh
24/11/2020
13:54
Dividend Declaration -

The Directors of the Company are pleased to announce the 1st interim dividend, in respect of the period from 1 October 2020 to 31 December 2020, of 1.25 pence per Ordinary share. This dividend will be paid on 29 January 2021, to shareholders on the register on 8 January 2021. Shares will be quoted ex-dividend on 7 January 2021.

speedsgh
22/9/2020
13:40
Dividend Declaration -

The Directors of the Company are pleased to announce the 4th interim dividend, in respect of the period from 1 July 2020 to 30 September 2020, of 1.25 pence per Ordinary share. This dividend will be paid on 30 October 2020, to shareholders on the register on 2 October 2020. Shares will be quoted ex-dividend on 1 October 2020.

------------------------------------

TOTAL FY 2019/20 - 5.00p
Q4 (Oct 20) - 1.25p
Q3 (Jul 20) - 1.25p
Q2 (Apr 20) - 1.25p
Q1 (Jan 20) - 1.25p

speedsgh
17/8/2020
14:13
‘Buy’ Invesco Enhanced Income

Investors’ disappointment at the decision of star bond fund managers Paul Causer and Paul Read to step back from Invesco Enhanced Income (IPE) has created a buying opportunity in the Jersey, high yield bond investment company, says Numis.

Analysts at the broker placed a ‘trading buy’ on the £115m fund after its shares slipped to a 9% discount following the announcement last month that Causer and Read’s deputy, Rhys Davies, would take over the portfolio with the help of Edward Craven.

The discount has narrowed to 7% since Numis published their note last week but is still wider than the 1% average of the past year.

Lovett-Turner said the changeover would not have a ‘significant impact on the way the portfolio is run’ as Davies had worked with Causer and Read since 2014.

Shares in the 7.5% yielder have fallen 8% this year, despite the 1.7% gain in the underlying net asset value. Over 10 years shareholders have received a total return, including dividends, of 141% from a portfolio that Lovett-Turner said balanced a core of quality high-yield bonds with low default expectations with more speculative positions subordinated bank and insurance company debt.

The discount ‘looks excessive’ and the yield is ‘attractive’, the analyst said.

speedsgh
07/8/2020
18:36
Looked at my bonus savings account monthly interest today and took at the money out to buy a few more of these and a few trusts. I know it's highly unlikely the price will improve much. The discount might narrow i guess. But getting 0.01% as an interest rate !!!!!
mbu69
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