7th Jun 2019 14:32
LONDON (Alliance News) - Invesco Enhanced Income Ltd said Friday its net asset value fell over the first six months of its financial year due to market volatility.
The investment company, which invests in high yielding corporate and government bonds, reported net asset value of 71.9 pence per share as at March 31, down 1.6% from 73.1p at September 30.
Invesco Enhanced saw a net asset value total return for the period of 1.9%.
The company's share price as at March 31 was 71.2p, reflecting a discount to net asset value of 1.0%.
Shares in Invesco Enhanced Income were up 0.1% on the day Friday at 74.30 pence, having improved since the end of the period.
The company said that the first part of the period was tough, with financial markets under pressure from trade tensions between the US and China, however sentiment became warmer with the US Federal Reserve and European Central Bank taking a more dovish stance on interest rates.
Invesco Enhanced declared an interim dividend of 2.50 pence per share, in line with the year before.
"Despite the rally year-to-date, the premium over government bonds that high yield companies need to pay to borrow remains higher than it was a year ago. Moreover, the more dovish backdrop has re-ignited the search for yield and investor demand for new issues is very strong. That said, the overall level of yield has fallen back towards recent averages and so we must expect the strong gains we enjoyed in the first quarter of 2019 to moderate from this point," said Portfolio Managers Paul Read, Paul Causer and Rhys Davies.
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