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
  0.00 0.0% 69.50 177,489 08:07:53
Bid Price Offer Price High Price Low Price Open Price
68.20 70.00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Equity Investment Instruments 8.88 7.88 4.54 15.3 121
Last Trade Time Trade Type Trade Size Trade Price Currency
13:43:04 O 3,423 69.023 GBX

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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 69.50p.
Invesco Enhanced Income Limited has a 4 week average price of 68p and a 12 week average price of 64.30p.
The 1 year high share price is 78.60p while the 1 year low share price is currently 43p.
There are currently 173,969,855 shares in issue and the average daily traded volume is 270,162 shares. The market capitalisation of Invesco Enhanced Income Limited is £120,909,049.23.
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.
mbu69: 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 !!!!!
speedsgh: Statement re Portfolio Manager Changes - HTTPS:// The Board is pleased to announce that Rhys Davies, who is responsible for the day-to-day management of the Company’s portfolio, will be named lead manager and Edward Craven has been appointed as deputy portfolio manager to assist Rhys. Paul Read and Paul Causer, co-heads of the Invesco Henley Fixed Interest team, will step back as co-fund managers but will continue to provide support along with the wider fixed interest team. The changes take effect from today. Rhys was promoted to portfolio manager in May 2016 to co-manage the Company’s portfolio having been deputy portfolio manager since June 2014 and has been associated with the Company’s portfolio for many years since joining Invesco in 2002. Edward Craven is a senior credit analyst having been part of the Fixed Interest team for more than nine years. He has more than 17 years’ financial services experience having begun his career at KPMG in Assurance and Corporate Finance, before moving to The Royal Bank of Scotland, where he worked in structured finance. Paul Read/Paul Causer commented: “The changes represent a natural progression recognising Rhys’s success as the Company’s portfolio manager and bringing on Edward Craven to work with him as a deputy portfolio manager. Rhys and Edward have our continuing support and that of the fixed interest team.”
9stilton: I believe John Baron has sold out all his holdings in IPE - no doubt all his followers are doing the same, hence the reason for the fall. No idea of the reason for the sale
speedsgh: Half-year Report - HTTPS:// Market background The performance of the high yield bond market over the six months to the 31 March 2020 was dominated by the market’s reaction to the impact of Covid-19 in late February and March 2020. The deterioration in sentiment was further compounded by a collapse in the oil price. This had a significant impact on the US high yield market, which has a high number of energy companies. By end of March, most countries across the world had, in response to the virus, introduced some form of lockdown. Economic activity has been significantly curtailed and many companies shuttered. The world’s central banks have responded to these shocks with unprecedented stimulus, slashing interest rates and restarting Quantitative Easing programmes. In the US, the Federal Reserve has committed to direct support of the corporate bond market including the unprecedented step of announcing it will purchase high yield bonds under certain conditions. After a very sharp market correction from late February, these announcements sparked the biggest rally in high yield bonds since the global financial crisis in 2008. Large fiscal policy stimulus programmes have also been a part of the response of many governments. This has included loans and support for companies. Nonetheless, the period has been extremely difficult for many companies, in particular those in leisure, travel and parts of the retail sector. For many companies the impact of this crisis will be felt for some time. The banking sector has also come under pressure and many banks have announced that they are stopping dividends, in-line with recommendations from both the European Central Bank and the Bank of England. The payment of interest on bank capital bonds, including additional tier 1 (AT1) bonds, is not affected. Unsurprisingly, this difficult environment for companies has led the rating agencies to revise their predictions of default rates higher. The market has also aggressively repriced the risk of default with large moves in credit spreads (the premium over government bonds that companies need to pay to borrow). By 31 March 2020 European high yield spreads had increased to 854 basis points (bps). This compares to a level of 405 bps at the 30 September 2019 and a low of 316 in mid-January 2020. With a recessionary backdrop it is inevitable that default rates will rise, and indeed we have already observed several high yield issuers appoint financial advisors with a view to restructuring their debt. Portfolio strategy The Company entered the 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 we raised cash in the portfolio significantly. This defensive stance, combined with the closed-ended structure, meant that we were well positioned to take advantage of the re-pricing that occurred. Slowly and cautiously credit risk was added. The focus of these purchases was on companies that we think have the balance sheet and business profile to survive the economic shock. Names added included Ziggo, Pinewood, IHO Schaeffler and Teva. The financial sector also provided some very attractive opportunities during March. Both Senior and AT1 bonds were added across multiple issuers with a focus on large European banks. Following these purchases, subordinated financials remain the fund’s largest sectoral allocation. Despite European banks having been asked to halt dividends and share buy-backs, the current situation is very different to the 2008 crisis. Then, banks and other financial institutions were the problem. This is a real economy shock and banks have come into it with much stronger liquidity and higher capital levels and asset quality. The announcement to halt shareholder payments has no bearing on banks’ intentions to pay AT1 coupons and we believe they will continue to do so. Outside of subordinated financials, the three largest sectors in the portfolio are telecoms, food and utilities. Over the period under review, the Company’s NAV fell from 74.2p to 62.1p. The NAV total return was –13.4%. The portfolio maintained gross borrowing of 19%. Outlook High yield bond markets have repriced to reflect the severe economic shock that the crisis is inflicting. A lack of market liquidity at the start of the crisis exacerbated price moves and created some very attractive opportunities for the Company. We were able to add positions to the portfolio, buying bonds from companies that we believe have a balance sheet and business profile that can survive. Looking ahead, although markets have rallied from the lows of 23 March 2020, credit spreads still offer some of the best value we have seen for many years. That said, there are undoubtedly challenging times ahead for many companies and default rates are likely to increase. A thorough and comprehensive analysis of each issuer and maintaining a diversified portfolio remain a crucial part of our approach, as we seek to add exposure and lock in value for when markets do recover.
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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