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 Shares Traded Last Trade
  0.20 0.28% 72.80 116,175 16:35:20
Bid Price Offer Price High Price Low Price Open Price
71.60 74.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 8.88 7.88 4.54 16.0 127
Last Trade Time Trade Type Trade Size Trade Price Currency
16:20:46 O 6,705 73.80 GBX

Invesco Enhanced Income (IPE) Latest News (1)

Invesco Enhanced Income News

Date Time Source Headline
15/4/202111:56UKREGInvesco Enh Inc Net Asset Value(s)
14/4/202111:55UKREGInvesco Enh Inc Net Asset Value(s)
13/4/202111:48UKREGInvesco Enh Inc Net Asset Value(s)
12/4/202111:25UKREGInvesco Enh Inc Net Asset Value(s)
09/4/202111:35UKREGInvesco Enh Inc Net Asset Value(s)
08/4/202111:48UKREGInvesco Enh Inc Net Asset Value(s)
07/4/202113:11UKREGInvesco Enh Inc Net Asset Value(s)
06/4/202111:24UKREGInvesco Enh Inc Net Asset Value(s)
01/4/202113:31UKREGInvesco Investment Trusts Portfolio Update
01/4/202111:51UKREGInvesco Enh Inc Net Asset Value(s)
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Invesco Enhanced Income Investors    Invesco Enhanced Income Takeover Rumours

Invesco Enhanced Income (IPE) Discussions and Chat

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Date Time Title Posts
09/4/202112:57Help with adding IPE to monitor list2
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Invesco Enhanced Income (IPE) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2021-04-15 15:20:4773.806,7054,948.29O
2021-04-15 15:17:2672.668,7226,337.06O
2021-04-15 14:56:5673.436,7974,990.94O
2021-04-15 14:38:5073.436,8094,999.75O
2021-04-15 14:36:0373.434,0742,991.48O
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Invesco Enhanced Income (IPE) Top Chat Posts

Invesco Enhanced Income Daily Update: Invesco Enhanced Income Limited is listed in the Equity Investment Instruments sector of the London Stock Exchange with ticker IPE. The last closing price for Invesco Enhanced Income was 72.60p.
Invesco Enhanced Income Limited has a 4 week average price of 71.20p and a 12 week average price of 68p.
The 1 year high share price is 75.20p while the 1 year low share price is currently 59.40p.
There are currently 173,969,855 shares in issue and the average daily traded volume is 298,408 shares. The market capitalisation of Invesco Enhanced Income Limited is £126,650,054.44.
nerja: 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.
scrwal: 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.
speedsgh: Proposed Merger with City Merchants High Yield Trust Ltd - HTTPS:// 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: Dividend Declaration - HTTPS:// 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.
cc2014: 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.
speedsgh: A warning in today's results that the current dividend policy is to be reviewed... Annual Financial Report - HTTPS:// "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: Dividend Declaration - HTTPS:// 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: Dividend Declaration - HTTPS:// 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: HTTPS:// ‘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: Portfolio Update - HTTPS:// In this very challenging time, an update from the Company’s portfolio manager is set out below. The Company’s closed ended structure means the Manager does not have to realise investments in these volatile markets to meet redemptions. It also enables the Manager to utilise borrowings to take advantage of opportunities to purchase bonds at attractive prices and enhance income as and when they present themselves. Furthermore, the Company has material revenue reserves available to support the payment of the quarterly dividend. The Company’s dividend policy remains unchanged and, whilst the Board is closely monitoring developments throughout this crisis, it remains confident that the portfolio is in good hands. Rhys Davies, Portfolio Manager, commented: “The rapid spread of the coronavirus outbreak has sadly impacted many lives and will impact many more over the coming months. This sobering prospect is paramount in my thoughts. As a portfolio manager I must, however, consider the economic and market impact of the virus, and how best to position Invesco Enhanced Income Limited (IPE). As of the date of this release, high yield bond markets appear dysfunctional. We are observing widespread selling and at times there are very few buyers, which creates immense downward pressure on bond prices. Cash is king and those that can invest are able to name their price. We have not witnessed markets like this since the financial crisis. Shareholders in the Company have experienced a decline in the share price that extends far beyond the movement in the Company’s NAV. Thankfully, IPE entered this crisis on a relatively strong footing. The portfolio was cautiously positioned by the end of 2019, which was a natural response to yields having fallen so much and our sober view on valuations. At the very early stages of the virus outbreak I raised cash in the portfolio significantly. As the crisis developed, I also put a hedge in place via a credit default swap. This defensive stance has meaningfully reduced the impact of market volatility on the Company’s NAV and leaves the Company with a solid base from which to invest. The portfolio is well diversified and has always maintained exposure to well over 100 different companies. It is my belief that such diversification of credit risk is essential in a portfolio that is focussed on high yield bonds. These are unprecedented times and it is not clear how the default environment will evolve but a diversified portfolio will leave the Company in a strong position to cope. Finally, the portfolio has been constructed with a bottom-up approach, based on individual company selection. Invesco has a team of highly experienced credit analysts whose job it is to navigate credit markets in both good times and bad. The global policy responses announced so far are astounding but markets remain rightly focussed on the economic impact that the virus will inflict. High yield bond markets have repriced to reflect the severe economic shock that we can expect, but a lack of market liquidity has undoubtedly exacerbated price moves. Such dislocation between prices today and longer-term value is already creating very attractive opportunities for the Company. Whilst maintaining a prudent level of cash I am slowly and cautiously starting to add positions to the portfolio, buying bonds from companies that we believe have a balance sheet and business profile that can survive even a severe economic disruption. These attractive purchases at low prices will increase the Company’s income beyond its pre-crisis level, to the benefit of dividend cover. It is important that I, and indeed shareholders, take a longer-term view beyond the current volatility in markets. We do not know when there will be a positive development around the virus, but in the meantime the Company contains a diversified portfolio of bonds that produce an attractive level of income for shareholders. I would like to wish all shareholders and readers of this note good health at this worrying time and to reassure you that our long established and successful investment process ensures that we are well equipped to manage the portfolio through the current uncertainty.”
Invesco Enhanced Income share price data is direct from the London Stock Exchange
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