21st May 2018 18:06
LONDON (Alliance News) - Invesco Perpetual Enhanced Income Ltd late Monday said it generated a negative return amid high-yield bond market fall.
The bonds-focused investment company reported a net asset value total return of negative 0.2% for the six months ended March, compared to the 3-month LIBOR rate which reported a 0.7% return.
Its net asset value per share at the end of the period stood at 74.9 pence, down 3.4% from 77.5p at the end of September, with overall net assets falling to GBP123.6 million from GBP125.3 million over the period.
Share price at the end of reported period was 79.2p, which represented 5.7% premium to the net asset value.
The stock closed 1.5% higher at 76.40 pence per share on Monday.
The company said that during the period the high-yield bond prices remain elevated and yields correspondingly low. Among the key drivers of bond market returns during the reported period were US tax reforms and central bank activity.
"The board is optimistic that with the recruitment of a high quality and experienced bond manager and a lower cost structure, the prospects for the future will be significantly improved with enhanced dividend cover and higher net returns for any given level of portfolio return," said Chairman Donald Adamson.
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