17th Dec 2019 10:29
(Alliance News) - Invesco Enhanced Income Ltd said Tuesday its net asset value rose in its recently ended financial year due to a more supportive European high-yield bond market, buoyed by central banks.
The investment company said as at September 30, net asset value per share was 74.2 pence, up 1.5% from 73.1p on the same date a year before.
Invesco Enhanced reported a net asset value total return of 8.9% for the year.
The firm's share price at the end of September was 75.2p, reflecting a 1.3% premium to net asset value.
Shares in Invesco Enhanced Income was up 0.1% on the day Tuesday at 76.66 pence in London, having improved further since the year-end.
The investment firm said overall the high-yield bond market delivered a positive return, with a strong rally in 2019 more than offsetting a weak finish to 2018, driven by more dovish stances from the US Federal Reserve and European Central Bank.
With the Fed cutting interest rates during the summer, and the ECB restarting its asset purchase programme to ease monetary policy, this allow the bond market to prosper during the period.
Invesco Enhanced Income declared a total dividend of 5.00 pence per share, in line with the year before.
"The outlook is clearer than it has been for some time following the election result. Both the UK market and sterling have strengthened, and we have clarity on the direction of travel in terms of our future relationship with the EU," said Chair Kate Bolsover.
"Turning to the bond markets, yields remain low and the manager continues to focus on quality when assessing current and potential investments. Whilst there is much commentary in the press about the high levels of bond prices, having discussed this with the manager, the board is comfortable that the portfolio is well positioned," Bolsover added.
By Dayo Laniyan; [email protected]
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