1st Dec 2016 10:53
LONDON (Alliance News) - Invesco Perpetual Enhanced Income Ltd said Thursday that despite low yields in bond markets, it delivered improved returns in its most recent financial year.
Invesco Perpetual Enhanced, which invests primarily in corporate and government bonds, reported a total return on a net asset value basis of 16% over its financial year ended September 30.
Invesco Perpetual Enhanced Income reported its net asset value per share stood at 74.5 pence on September 30, increased by 8.4% from 68.7p at the same date in 2015.
The fund's share price at September 30 stood at 77.4p, a 3.9% premium to net asset value, improved from 69.8p and a 1.6% premium at the end of the previous financial year.
Shares in Invesco Perpetual Income were down 0.1% at 77.07p Thursday.
The fund paid out a total dividend of 5.00p per share over the financial year, comprising four interim dividends of 1.25p each. As revenue return for the period was 4.5p a share, the shortfall was made up by GBP615,000 from the company's revenue reserve.
The performance of the company over the year led to GBP848,000 being paid out in a 0.96% performance fee to investment manager Invesco Fund Managers Ltd.
"The corporate bond buying programmes initiated by the [European Central Bank] and [Bank of England] have significantly impacted European corporate bond markets. Looking ahead, these programmes will likely continue to provide bond markets with strong support," said Invesco portfolio managers Paul Read, Paul Causer and Rhys Davies.
"However, the bond-positive aspect of these programmes needs to be set against the ever-diminishing level of income available to investors. The market, meanwhile, remains vulnerable to sharp reversals such as we have seen over the past 12 months. But, as has been the case this year, such risk-off periods can provide the opportunity to lock in attractive yields. Taking these factors into consideration, our strategy remains defensive and patient," added the managers.
By Adam Clark; [email protected]
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