Invesco Bond Income Plus Share Discussion Threads

[marktime1231] 04/4/2024 13:33

A quick scan to see what scope there might be for dividend increases shows revenue cover (gross or net ?) was only x 1.06, which is why we look settled on a 2.875p quarterly for 2024.

Given the interest rate outlook a pretty safe yield of 6.5% is attractive, but not quite the spectacular income we enjoyed from CMHY or is still available from high yield debt trusts like SMIF (8.4%) and NCYF (8.6%). I suppose if I was looking to derisk my pension portfolio adding some BIPS would make sense, but I will continue with my slightly higher risk-higher reward strategy while alternatives trade at a premium and share price recovering.

[spangle93] 04/4/2024 09:30

2023 Annual Results



Synopsis
Happy with last year, cautious moving forward, with limited guidance beyond a summary of risks for 2024

[panshanger1] 30/3/2024 15:51

Top sliced a few after a strong run but still a core holding for me Well done to the managers

[nerja] 12/2/2024 17:02

Yes I bought them for Sipp and two isa , just seemed a good deal with no fees I wanted to add. Did miss the chance to sell and buy back drat

[holts] 12/2/2024 15:55

Did anyone get notice from II abut this ?

[boystown] 25/1/2024 20:24

Thanks pvb - sorry; I read it all wrong!

[pvb] 25/1/2024 20:16

Boystown24 Jan '24 - 21:34 - 230 of 233

"the Offer has been limited to the sterling equivalent of €8m and may only be open for a very short period. Applications are due to close at 11am on Wednesday 07 February. Due to the nature of the fundraising, applications can close at any time and without prior warning. Shares are being offered at a price equal to a 0.75% premium to the last published cum-income Net Asset Value (NAV) per Share prior to the close of the Fundraising. This is anticipated to be announced on Tuesday 06 February."

The current NAV is 166pps - so am I being offered shares at c.124.5p?

Surely not? If the NAV were 166pps then a price at a 0.75% premium to that would be
166 * (1 + 0.75%) = 167.25pps.

[boystown] 25/1/2024 10:52

Thanks both - I don't really understand it all but I guess the wisest thing is to do nothing?

[spangle93] 25/1/2024 09:29

It's also "at a price equal to a 0.75% premium to the last published cum-income Net Asset Value (NAV) per Share prior to the close of the Fundraising."

So you commit to purchase now, but you won't know until after Feb 6th at what price you bought... only that your premium to NAV is lower that what it was on the date of the announcement.

Price unknown, and actual premium (do you benefit versus the 0.75%) unknown

[mancman1] 24/1/2024 21:47

You would be offered shares at a premium to NAV, which is around 1.2p more than NAV. Thisis less than the current buy price of 169 - but perhaps not enough to get excited about unless you intend to buy a lot.

[boystown] 24/1/2024 21:34

I received my email from HL today - the important parts of which are:

"the Offer has been limited to the sterling equivalent of €8m and may only be open for a very short period. Applications are due to close at 11am on Wednesday 07 February. Due to the nature of the fundraising, applications can close at any time and without prior warning. Shares are being offered at a price equal to a 0.75% premium to the last published cum-income Net Asset Value (NAV) per Share prior to the close of the Fundraising. This is anticipated to be announced on Tuesday 06 February."

The current NAV is 166pps - so am I being offered shares at c.124.5p? Also - do I need to say yes quickly given that it may be closed at any point?

Thanks in advance for any advice.

[marktime1231] 24/1/2024 11:51

Actually they do say why and how much, it is to capture anticipated demand of up to £15M from HDIV punters cashing in rather than rolling into HHI. Not sure why that qualifies them for a reduced premium deal effectively at the expense of existing BIPS holders, although the opportunity is available to all should you wish to increase your holding. Presumably there are attractive opportunities to spend the new cash on, and of course any expansion means higher fees for the manager.

[spangle93] 24/1/2024 07:56

Retail offer in association with Placing

Price set by NAV in Feb, so it's a bit of an unknown, but smaller premium to NAV than currently reported

No specified reason, or quantum, for the placing

[speedsgh] 12/12/2023 16:36

Dividend Declaration -

The Directors of Invesco Bond Income Plus Limited (the “Company”) are pleased to announce the 4th interim dividend, in respect of the year ended 31 December 2023 of 2.875 pence per share. This dividend will be paid on 20 February 2024, to shareholders on the register at close of business on 19 January 2024. The shares will be marked ex-dividend on 18 January 2024...

[pyemckay] 29/10/2023 12:53

That was a typo. I will be starting to scale into them. BIPS looks like it will be my first purchase.

[aishah] 29/10/2023 01:28

Which ones pyemckay?

[pyemckay] 28/10/2023 19:27

That was interesting speedsgh. I have been looking for some exposure to bond funds and I am starting to scale into them given where we are in the cycle. Very interesting podcast. cheers

[speedsgh] 25/10/2023 12:43

Short interview with Fund Manager, Rhys Davies from 2m07s to 7m49s...



In this bonus edition of the Weekly Investment Trust Podcast, Jonathan Davis, editor of the Investment Trusts Handbook, speaks to Rhys Davis (Invesco Bond Income Plus; BIPS), Phil Kent (GCP Infrastructure; GCP), and Simon Gergel (Merchants Trust; MRCH), all of who were at the recent AIC Investment Trusts Showcase event in London...

[panshanger1] 22/9/2023 08:40

Been a decent recovery here over the last few months

[speedsgh] 31/8/2023 14:16

Invesco bond trust maintains premium despite Credit Suisse exposure -

[speedsgh] 28/8/2023 09:42

In this week’s edition of the Weekly Investment Trust Podcast, Jonathan Davis, editor of the Investment Trusts Handbook, talks to Max King, the market and investment trust commentator and former Investec fund manager. Jonathan also talks to Rhys Davies, manager of the Invesco Bond Income Plus Investment Trust (BIPS); the first half of that discussion can be heard in the podcast, with the full interview available below...

[speedsgh] 22/8/2023 19:23

Half-year Report -

from the Portfolio Managers' Report:

Q. How did the Company perform?
A. Over the six months to 30 June 2023 the share price fell from 166p to 162p, but with dividends reinvested, the Company delivered a positive share price total return of 1.0%. The net asset value per share total return (with dividends reinvested) was 2.1%.

Q. What were the key contributors and detractors of performance?
A. The portfolio's exposure to credit risk was the main driver of the positive return. Within this, high yield bonds were the largest contributor. Investment grade, corporate hybrids and senior bank debt also contributed. Exposure to subordinated financial debt was a small negative. The portfolio's duration (sensitivity to interest rates) was a negative factor as interest rate expectations rose. A rise in the value of sterling meant that the modest non-sterling exposure in the portfolio was also negative.

The unexpected write-down of Credit Suisse Additional Tier 1 (AT1) bonds when the bank was acquired by UBS was a negative factor. The portfolio holding in Credit Suisse as of the end of February was 0.54%. However, the portfolio's other holdings in AT1 and its holdings in Credit Suisse senior debt recovered strongly after this event. While two Credit Suisse AT1s were in the bottom 10 performing bonds in the portfolio, some other financials such as Banco Comercial Portugues and Piraeus Financial were among the portfolio's top five contributors.

Q. What changes were made to the portfolio?
A. The Company was active in the period with a mixture of primary and secondary market purchases. The focus of purchases was on higher quality BB rated bonds that we feel offer a relatively attractive balance of return to risk.

We participated in a new issue from generics drug manufacturer Teva Pharmaceutical Finance, a company that we have invested in for several years. Other new issues purchased included lottery operator Allwyn Entertainment and car battery manufacturer Clarios. Although these are two very different businesses, we believe that both are well placed to weather any economic downturn. We also bought new hybrid corporate bonds from Swedish state-owned utility Vattenfall, Portuguese utility company EDP, Vodafone Group and BT.

In the secondary market we added to existing positions in UK holiday park operator Center Parcs and retailer Ocado. Center Parcs is expected to perform well again in 2023. Ocado's bonds earn an attractive yield but also have, in our view, good potential capital upside from any good news around the company's technology licensing. During the period of weakness in bank bonds following the write-down of Credit Suisse's AT1s, we added to the position in Nationwide AT1.

Several bonds of companies with weaker balance sheets were sold. These included telecom and retail names. Credit concerns led us to sell French furniture retailer Mobilux Finance and European residential landlord Heimstaden. Heimstaden is an example of a credit where the investment case has changed dramatically due to a rising rate environment. The European real estate sector is an area about which we remain cautious. We fear that some business models built on low borrowing costs are no longer commercially viable.

Following these transactions, the allocation to corporate high yield was reduced from 48.4% to 43.7%. Exposure to subordinated bank and insurance was gradually increased from 30.7% to 33.7%.

We view financials as providing a more favourable risk-reward profile than similar-rated high yield bonds with the Company holding a well-diversified portfolio of more than 20 European banks. We continue to assess and adjust exposures to the banking sector and while we believe fundamentals are strong for the banks held in the trust, we are aware of the risks that a crisis of confidence can pose to the sector and to individual banks.

In other activity, long-dated UK gilts were added and now account for 1.6% of the portfolio.

Net gearing was increased from 15.7% to 16.9%. Gearing is one of the tools we can use to adjust the level of risk in the portfolio to align it with the level of opportunity we see in the market. Although the cost of borrowing has gone up, we believe gearing is still an attractive option given the higher level of yield we can now receive from the bonds we want to buy...

Q. What is your outlook from here?
A. Uncertainty around the outlook for the economy and inflation, combined with the ongoing impact of the interest rate hiking phase of the cycle has fuelled volatility in financial markets, leading to market strain, as seen most clearly in the banking sector. We will continue to monitor our allocations within the banking sector. For now, we are comfortable that the levels of yield provide an attractive reward for the credit risks, especially with a well-diversified spread of risk across many banks. It is certainly encouraging that attractive yields are available from so many more sources today, but we also expect volatility to be a defining feature of 2023. It is therefore important to remain nimble and be prepared to sell bonds that have performed well, especially whilst our outlook for the global economy and high yield bond markets, particularly the weaker parts, remains cautious.

[speedsgh] 10/8/2023 11:53

James Carthew: Soft landing vs recession weighs on bond funds -

The fortunes of Henderson Diversified Income, Invesco Bond Income Plus and CQS New City High Yield depend on getting this crucial forecast right...

[continues]

[shieldbug] 24/5/2023 18:17

Presentation on the Invesco website dated 18th April 2023 by Rhys Davies.

hxxps://www.invesco.com/uk/en/insights/aj-bell-webinar-delivering-steady-income-uncertain-world.html