INVESCO BOND INCOME PLUS LIMITED
HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2025
Unless otherwise stated, all page numbers below refer to the Half-Yearly Financial Report on the Company’s website.
Highlights
• 6.5% increase in dividends declared compared with same period last year. Interim dividends totalling 6.125p per share declared during the period.
• Positive Net Asset Value total return of 3.4%.
• Share price continued to trade at an average premium of 1.4% during the period.
• 13 million shares issued during the period raising gross proceeds of £22.3 million.
Investment Objective
The Company’s investment objective is to seek to obtain capital growth and high income from investment, predominantly in high-yielding fixed-interest securities.
Investment Policy
The Company seeks to provide a high level of dividend income relative to prevailing interest rates mainly through investment in bonds and other fixed-interest securities. The Company also invests in equities and other equity-like instruments consistent with the overall objective.
Financial Information and Performance Statistics
| Total Return Statistics(1)(2) with dividends reinvested | For Six Months to 30 June 2025 | For Year Ended 31 December 2024 |
| Net asset value – total return with dividends reinvested | +3.4 | +8.5 |
| Share price – total return with dividends reinvested | +2.8 | +8.8 |
| Capital Statistics | At 30 June 2025 | At 31 December 2024 |
| Net assets (£’000) | 366,844 | 345,799 |
| Net asset value per ordinary share(2) | 170.32p | 170.87p |
| Share price(1) | 172.50p | 174.00p |
| Premium(2) | 1.3% | 1.8% |
| Gearing(2) | ||
| Gross gearing | 12.3% | 13.1% |
| Net gearing | 5.7% | 9.9% |
| Performance Statistics | For Six Months to 30 June 2025 | For Six Months to 30 June 2024 |
| Revenue return per ordinary share | 6.26p | 5.66p |
| Capital return per ordinary share | (0.73)p | 0.28p |
| Total return | 5.53p | 5.94p |
| Dividend per ordinary share for the period | 6.125p | 5.750p |
(2) Alternative Performance Measures (APM).
Chairman’s Statement
President Trump had promised he would move quickly to implement his economic agenda and financial markets began the year in a nervous mood as investors struggled to keep up with the pace and scale of announcements coming from the White House. Three main policy priorities dominated the news flow. First, the somewhat ‘on-off’ imposition of tariffs on foreign goods, particularly from China. Secondly, reductions in income tax combined with cuts to Medicaid, the health insurance programme for low income families, and thirdly a drive to reduce the size of federal government.
Market nervousness surrounding the economic impact of this radical policy mix reached a peak in early April. The US dollar fell sharply while fixed income yields rose. Uncertainty was compounded by the unprecedented volume of executive orders issued by President Trump and by his attacks on Jay Powell, the chair of the Federal Reserve. Markets then regained some poise as President Trump backtracked on some of his threatened tariffs.
The Company’s Net Asset Value (NAV) total return was 3.4% for the first six months of 2025, modestly below the 3.8% total return of our reference index, ICE BofA European Currency High Yield Index. The share price total return was 2.8%. The Portfolio Manager’s Report which follows my statement explains in more detail the main determinants of our investment performance during the period under review.
We announced first and second interim dividends of 3.0625 pence per share during the first six months of the year, a 6.5% increase on the total dividend declared for the same period in 2024. Moreover I am pleased to confirm that we remain on course to meet our full year dividend target of 12.25 pence per share.
Demand for the Company’s shares remained strong and it was pleasing to see our shares trade at a consistent premium during the first six months of the year. Against this backdrop we were able to issue a total of 13m shares in the period to 30 June 2025, raising gross proceeds of £22.3 million. For the period from 1 July 2025 to the date of this report we have issued a further 4.2m shares. Our ability to grow steadily the number of shares in issue benefits shareholders by improving liquidity and by ensuring that the fixed costs of running the Company are spread across a larger base.
The direction of high yield markets over the next six months will undoubtedly be shaped by the unfolding impact of President Trump’s dramatic shake-up of the US economy since taking office. The consensus outlook is broadly one of some weakening in economic growth followed by a resumption in interest rate cuts leading to a possible uptick in growth in 2026. This would turn out to be a largely supportive environment for high yield securities given that a protracted or deep recession would be avoided.
Nevertheless, we can certainly anticipate that markets are set to remain jittery over the reminder of the year and investors will be watching closely for any possible signs of risk to the economic outlook, including for example any evidence of stubborn or rising price pressures, trade disruption or deterioration on the fiscal position. Heightened uncertainty typically creates opportunities for the fundamental, long term investor, and I have no doubt that the Company is in a strong position to take advantage of any increase in market volatility over the next six months.