Invesco Bond Income Plus Ltd - Half-Year Report
LEI: 549300JLX6ELWUZXCX14
HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED
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 For Year
Months to Ended
30 June 31 December
2025 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 At
30 June 31 December
2025 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 For Six
Months to Months to
30 June 30 June
2025 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
(1) Source: LSEG Data & Analytics.
(2) Alternative Performance Measures (APM). See Glossary of Terms and Alternative Performance Measures on pages 15 and 16 of the financial report for details of the explanation and reconciliations of APMs.
Chairman’s Statement
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
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
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
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.
Chairman
Portfolio Managers’ Report
Portfolio Manager
Rhys is a fund manager for the Invesco Fixed Interest Europe team, based in our Henley office.
He began his investment career with Invesco in 2002, moving to the Henley Fixed Interest team in 2003. He became a fund manager in 2014. He manages high yield credit portfolios.
He holds a BSc (Honours) in Management Science from the
Deputy Portfolio Manager
Edward is a fund manager for the Invesco Fixed Interest Europe team, based in our Henley office.
He began his career with
He holds a Master’s degree in Physics from the
Q How did the high yield bond market perform in H1 2025?
A The rally that began late in 2022 has extended into this year, with the high yield bond market producing broadly positive returns. Credit risk has continued to be rewarded. Corporate bonds, our main market, outperformed government bonds, but both recorded gains. Credit’s outperformance was driven by its higher level of income.
In the year to the end of June, the gilt market i returned 2.5%, bringing the yield from 4.59% to 4.40%. Sterling investment grade bonds ii returned 3.4%, with the yield falling from 5.38% to 5.17% and the spread over gilts widening slightly, from 91bps to 96bps. European high yield bonds iii, hedged to sterling, returned 3.8%. Again, while the overall yield fell from 6.11% to 6.01%, the spread widened from 316bps to 321bps. Within the high yield market, riskier B rated bonds outperformed higher quality BB rated bonds slightly.
As always for bonds, the starting yield has been an important driver of returns. But prices have also risen modestly as the macroeconomic environment has remained supportive. The
The credit markets have also been supported by economic growth (albeit the level is modest), which has underpinned corporate earnings. Other credit fundamentals, such as the level of indebtedness and the degree to which earnings cover interest, remain within their longer-term ranges.
These factors are certainly positive. However, when we take a broader view, the market’s resilience has been impressive, not to say surprising. The new US administration has introduced an extraordinary level of policy uncertainty which has impacted on sentiment. There is a high probability that we are entering a period of significantly increased tariffs, which will directly affect corporate sales and earnings. At the same time, the fiscal position in many of the major developed economies is concerning. On top of this, geo-political risks are high. For now, investors seem content to wait and see – to see if weakness in sentiment leads to weakness in demand, if threats turn into the imposition of tariffs and if those tariffs lead to inflation or weaker earnings or both.
One reason for this resilience is market technicals. Corporate bond valuations are benefitting from strong demand relative to supply. On the supply side, bond issuance has risen from the low level of 2022 but remains well below the levels of 2020 and 2021 iv . On the demand side, more money has flowed into the asset class iv . Asset flows are not immune to sentiment – there was some outflow in April, when the market sold-off immediately after ‘Liberation Day’, but there has been a strong recovery since. Overall, money is seeking out yield.
Q How did the company perform?
A
Over the six months to
Q What were the drivers of portfolio return?
A In the first half of 2024, credit spreads tightened and the portfolio’s return was dominated by the contribution from credit risk. The first half of this year has been quite different. Government bonds have rallied and credit spreads are narrow by historic standards. A greater share of the yield in our market is coming from interest rate risk or duration. According to our return contribution analysis, well over half of the total gross portfolio return of 3.5% is accounted for by interest rates.
This reflects our positioning as well as current valuations. The level of interest rate risk in the portfolio has been slightly higher than that of the European high yield market, meaning that we have benefitted more from the returns of the government bond market. However, we have also held less credit risk in the face of tight spreads, holding higher quality assets. This means we have benefitted less from the returns in this part of the market. Overall, the net asset value of the portfolio rose by 3.4% compared to 3.8% for the ICE BofA European Currency High Yield Index, hedged to GBP (both in total return terms).
Bonds from a range of sectors feature in the list of top contributors to the portfolio’s return. Aviva’s
On the negative side, Mobico Group
Q How have you managed the portfolio?
A Credit spreads tightened considerably in 2023 and 2024. As the market rallied and the reward for continuing to hold credit risk diminished, we increased the quality of our portfolio. The allocation to investment grade bonds rose and the allocation to high yield was reduced.
The credit rally has slowed this year. Spreads have been relatively steady, at historically low levels, and we have maintained our relatively high quality allocation. We currently hold over 30% in investment grade and cash and 65% in high yield/non-rated. In recent months we have reduced our exposure to AT1 bank instruments (the most junior rank of bank debt capital). We think this positioning is a prudent alignment of risk with reward in the context of our mandate to deliver income for the Company to pay dividends.
Looking at the portfolio from the bottom-up, at the level of individual bonds and companies, we have, as always, been busy and we have been happy to buy bonds that we thought offered attractive income. In the early months of the year, purchases included a new bond issued by Viridien (a French seismic data company) with a 10% coupon in USD and 2030 maturity. We also bought Italian company Engineering Ingegneria Informatica’s (engineering) new
The sell-off after President Trump’s initial tariff announcements offered buying opportunities in the secondary market. We topped up on our Aviva
The market recovered quickly and lots of new bonds have been issued in May and June. We have been mindful of rising valuations but we have added some bonds, including Punch Finance
Q What is your outlook for the market?
A Without putting out of our minds the high level of policy uncertainty and geopolitical risk, there is a positive case to be made for the bond markets. Interest rates are still high, broadly speaking, and government bond yield curves are a lot steeper. This means the starting point for yields is reasonably high. Central banks appear set to continue to cut interest rates over coming quarters, if inflation data does not surprise on the upside. This adds a tail wind for bond investors.
Conditions in the credit markets remain robust. Fundamental data on earnings and debt levels are okay and there is little sign yet of a widespread inability to refinance. That said, credit risk is not being generously rewarded at the market level – credit spreads are tight.
We are happy that our markets can produce reasonable levels of income, but we do not want to stretch for yield in parts of the market where the reward is less generous. Our focus remains on careful assessment and management of the risks at the portfolio level and in the bonds in our market.
i
ICE BofA
ii ICE BofA Sterling Corporate Index.
iii ICE BofA European Currency High Yield Index.
iv
JP Morgan European High Yield Quarterly Review,
Portfolio Managers
Principal and Emerging Risks and Uncertainties
The Board has carried out a robust assessment of the risks facing the Company, including those that would threaten its business model, future performance, solvency and liquidity. As part of this process, the Board conducted a full review of the Company’s risk control summary and considered new and emerging risks. These are not necessarily principal risks for the Company at present but may have the potential to be in the future. In carrying out this assessment, the Board considered the emerging risks facing the Company including geopolitical risks such as the war in
Category and Principal Risk Mitigating Procedures and Controls Description Strategic Risks Market and Political Risk The Company invests primarily in fixed interest securities, the majority of which are traded on global security markets. The principal risk for investors in the Company is a significant fall and/or a An explanation of market risk and how this is prolonged period of decline addressed is given in note 19.1 to the financial in these markets. This could statements within the 2024 annual financial report. be triggered by unfavourable The Portfolio Managers’ Report summarises developments globally and/or particular macro economic factors affecting in one or more regions, such performance during the period and the portfolio as the current conflicts in managers’ views on those most relevant to theUkraine and theMiddle East , outlook for the portfolio. and other geopolitical tensions and uncertainties and their impact on the global economy. The Board cannot control the effect of such external influences on the portfolio. Market risk also arises from movements in foreign currency exchange rates and interest rates. The Board receives regular reports from the Manager Regulatory orFiscal Changes and Company Secretary which highlight any proposed changes to the regulatory/fiscal regimes which The Company is incorporated might impact the Company. Jersey has recently in Jersey which is a low tax received a positive report from MoneyVal, the jurisdiction subject to Council of Europe’s permanent monitoring body. global scrutiny. Any adverse MoneyVal concludes that Jersey’s effectiveness in global regulatory or fiscal preventing financial crime is among the highest measures taken against such level found in jurisdictions evaluated around the low tax jurisdictions, could world. More information can be found here: negatively impact the Company. https://www.gov.je/News/2024/Pages/Jersey%E2%80%99s StrengthInCombattingFinancialCrimeIsRecognised.aspx Wide Discount leading to Shareholder Dissatisfaction The Board receives regular reports from both the Manager and the Company’s broker on the Company’s The Company’s shares are share price performance and level of discount (or subject to market movements premium), together with regular reports on and can trade at a premium marketing and meetings with shareholders and or discount to NAV. Should prospective investors. The Board recognises the the Company’s shares trade importance of the Company’s scale in terms of the at a significant discount aggregate value of its shares in the market compared to its peers, then (‘market cap’) in creating liquidity and the shareholder dissatisfaction benefit of a wide shareholder base, and has the may result if shareholders ability to both issue and buy back shares to assist cannot realise the value of with market volatility. The foundation to this lies their investment close to in solid investment performance and an attractive NAV, with the ultimate risk level of dividend. that arbitragers join the share register. Third Party Service Providers Risks Lack of Control over, or Unsatisfactory Performance of Third Party Service Providers (‘TPPs’) Failure by any service provider to carry out its obligations to the Company in accordance with the terms of its appointment could Details of how the Board monitors the services have a materially provided by the Manager and the other TPPs, and the detrimental impact on the key elements designed to provide effective internal operations of the Company control, are included in the internal control and and affect its ability to risk management section on page 14 of the 2024 pursue successfully its annual financial report. investment policy and expose it to reputational risk. Disruption to the accounting, payment systems or custody records could prevent the accurate reporting and monitoring of the Company’s financial position. Cyber RiskThe Audit & Risk Committee on behalf of the Board The Company’s operational periodically reviews TPPs’ service organisation structure means that cyber control reports and meets with representatives of risk (information technology the Manager’s Investment Management, Compliance, and physical security,Internal Audit and Investment Trust teams as well including risks associated as the Company Secretary’s senior staff and with Artificial Compliance team. The Board receives periodic Intelligence) predominantly updates on the Manager’s and the Company arises at its TPPs. This Secretary’s information security arrangements. The cyber risk includes fraud, Board monitors TPPs’ business continuity plans and sabotage or crime testing – including their regular ‘live’ testing of perpetrated against the workplace recovery arrangements. Company or any of its TPPs. The Manager’s and other TPPs business continuity plans are reviewed on a regular basis and the Directors are satisfied that the Manager has in place robust plans and infrastructure to minimise Business Continuity Risk the impact on its operations so that the Company can continue to trade, meet regulatory obligations, Impact of a major event on report and meet shareholder requirements. the operations of the service providers, including The Board receives periodic reports from the any prolonged disruption. Manager and TPPs on business continuity processes and has been provided with assurance from them all insofar as possible that measures are in place for them to continue to provide contracted services to the Company.
In the view of the Board, these principal and emerging risks and uncertainties are as applicable to the remaining six months of the financial year as they were to the period under review.
Investment Portfolio
AT
Market
Country of Value % of
Issuer Industry Incorporation £’000 Portfolio
Lloyds Banking Group Financials UK 11,801 3.0
Nationwide Financials UK 11,579 3.0
Aviva Financials UK 10,176 2.6
Barclays Financials UK 10,099 2.6
Co-Operative Bank Financials UK 8,287 2.1
Eléctricité De France Utilities France 7,985 2.1
UK Treasury Bill Government Bonds UK 7,854 2.0
Thames Water Finance Utilities UK 7,089 1.8
Engineering Ingegneria Technology Italy 6,910 1.8
Informatica
Jerrold Finco Financials UK 6,588 1.7
BNP Paribas Financials France 5,837 1.5
Saffron Building Society Financials UK 5,609 1.5
CPUK Finance Financials Jersey 5,553 1.4
Vodafone Group Basic Materials UK 5,425 1.4
Atom Financials UK 5,073 1.3
OSB Financials UK 5,040 1.3
Intesa Financials Italy 4,889 1.3
Deutsche Bank Financials Germany 4,714 1.2
Newcastle Building Society Financials UK 4,687 1.2
Ineos Quattro Industrials UK 4,556 1.2
NatWest Financials UK 4,456 1.2
UTB Partners Financials UK 4,258 1.1
Legal & General Financials UK 4,257 1.1
Sainsbury’s Bank Financials UK 4,128 1.1
Clarios Consumer Services USA 4,092 1.1
Ford Motor Credit Consumer Goods USA 4,088 1.1
DNO ASA Oil & Gas Norway 3,989 1.0
Benteler International Consumer Services Austria 3,965 1.0
Lion/Polaris Consumer Goods Luxembourg 3,928 1.0
Rino Mastrotto Consumer Goods Italy 3,878 1.0
Top 30 issuers 180,790 46.7
Other issuers 207,842 53.7
Total portfolio held at fair
value
through profit or loss 388,632 100.4
Derivative Instruments – Credit Default Swaps
Market
Value % of
Company Nominal Coupon % Maturity Date £’000 Portfolio
Itraxx Europe Crossover
Series 42 5% 5 Year € 19,000,000 5.00 20 Jun 2030 (1,540) (0.4)
Total derivatives held at
fair value
through profit or loss (1,540) (0.4)
Total investments and
derivatives
held at fair value through
profit
or loss 387,092 100.0
Governance
Related Parties
Note 23 to the financial statements within the Company’s 2024 annual financial report gives details of related party transactions. The basis of these has not changed for the six months being reported. The 2024 annual financial report is available on the Company’s section of the Manager’s website at: www.invesco.co.uk/bips.
Going Concern
The financial statements have been prepared on a going concern basis. When considering this, the Directors took into account the annual shareholders’ continuation vote and the following: the Company’s investment objective and risk management policies, the nature of the portfolio and expenditure and cash flow projections. As a result, they determined that the Company has adequate resources, an appropriate financial structure, readily realisable fixed assets to repay current liabilities and suitable management arrangements in place to continue in operational existence for the foreseeable future.
Bond Rating Analysis
The table below reflects Standard and Poor’s (‘S&P’) ratings. Where an S&P rating is not available, an equivalent average rating has been used. Investment grade is BBB– and above.
For the definitions of these ratings see the Glossary of Terms and Alternative Performance Measures on page 80 of the Company’s 2024 annual financial report.
30 June 2025 31 December 2024
Cumulative Cumulative
Rating Portfolio % Total % Portfolio % Total %
Investment Grade:
AAA 0.2 0.2 – –
AA+ 0.2 0.4 0.2 0.2
AA 2.2 2.6 2.6 2.8
A+ 0.3 2.9 0.2 3.0
A 0.1 3.0 0.1 3.1
BBB+ 0.6 3.6 0.6 3.7
BBB 19.2 22.8 19.0 22.7
BBB– 4.8 27.6 4.0 26.7
Non-investment Grade:
BB+ 10.1 37.7 7.5 34.2
BB 13.9 51.6 15.4 49.6
BB– 12.2 63.8 13.6 63.2
B+ 7.8 71.6 5.5 68.7
B 14.5 86.1 14.1 82.8
B– 5.0 91.1 4.9 87.7
CCC+ 0.9 92.0 0.7 88.4
CCC 2.5 94.5 0.7 89.1
CC 0.4 94.9 2.1 91.2
NR (including equity) 5.1 100.0 8.8 100.0
100.0 100.0
Summary of Analysis
Investment Grade 27.6 26.7
Non-investment Grade 67.3 64.5
NR (including equity) 5.1 8.8
Total 100.0 100.0
Directors’ Responsibility Statement
in respect of the preparation of the Half-Yearly Financial Report
The Directors are responsible for preparing the financial report, using accounting policies consistent with applicable law and International Financial Reporting Standards.
The Directors confirm that to the best of their knowledge:
– the condensed set of financial statements contained within the Half-Yearly Financial Report have been prepared in accordance with International Accounting Standards 34 ‘Interim Financial Reporting’;
– the interim management report includes a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R of the FCA’s Disclosure Guidance and Transparency Rules; and
– the interim management report includes a fair review of the information required on related party transactions.
The Half-Yearly Financial Report has not been audited or reviewed by the Company’s auditor.
Signed on behalf of the Board of Directors.
Audit & Risk Committee Chair
Condensed Statement of Comprehensive Income
Six months ended Six months ended
30 June 2025 30 June 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Net (losses)/gains on
investments held at fair
value through profit or – (4,606) (4,606) – 2 2
loss
Net gains on derivative
instruments – currency
hedges and CDS – 5,856 5,856 – 891 891
Exchange differences – (1,766) (1,766) – 666 666
Income – note 2 14,691 – 14,691 12,140 – 12,140
Investment management (581) (581) (1,162) (532) (532) (1,064)
fees – note 3
Other expenses (868) (113) (981) (411) (68) (479)
Profit/(loss) before
finance costs
and taxation 13,242 (1,210) 12,032 11,197 959 12,156
Finance costs – note 3 (304) (304) (608) (430) (430) (860)
Profit/(loss) before 12,938 (1,514) 11,424 10,767 529 11,296
taxation
Taxation – note 4 (45) – (45) (14) – (14)
Profit/(loss) after 12,893 (1,514) 11,379 10,753 529 11,282
taxation
Return per ordinary 6.26p (0.73)p 5.53p 5.66p 0.28p 5.94p
share
Weighted average number
of ordinary shares
in issue during the 205,884,845 189,998,186
period
The total columns of this statement represent the Company’s statement of comprehensive income, prepared in accordance with International Financial Reporting Standards as adopted by the
Condensed Statement of Changes in Equity
Stated Capital Revenue
Capital Reserve Reserve Total
£’000 £’000 £’000 £’000
For the six months ended 30 June 2025
At 31 December 2024 353,041 (18,973) 11,731 345,799
(Loss)/profit after taxation – (1,514) 12,893 11,379
Dividends paid – note 5 (118) – (12,382) (12,500)
Net proceeds from issue of new shares – note 22,166 – – 22,166
6
At 30 June 2025 375,089 (20,487) 12,242 366,844
For the six months ended 30 June 2024
At 31 December 2023 316,793 (22,018) 9,854 304,629
Profit after taxation – 529 10,753 11,282
Dividends paid – note 5 (336) – (10,430) (10,766)
Net proceeds from issue of new shares – note 24,600 – – 24,600
6
At 30 June 2024 341,057 (21,489) 10,177 329,745
Condensed Balance Sheet
At At
30 June 31 December
2025 2024
£’000 £’000
Non-current assets
Investments held at fair value through profit or loss 388,632 376,963
Current assets
Derivative financial instruments – receivable 2,874 415
Margin held at brokers 4,127 2,783
Proceeds due from issue of new shares 993 260
Prepayments and accrued income 6,711 6,896
Cash and cash equivalents 20,274 8,153
34,979 18,507
Current liabilities
Amounts due to brokers (8,731) –
Amounts payable relating to issue of new shares (5) (1)
Accruals (947) (999)
Derivative financial instruments – payable (356) (2,321)
Securities sold under agreements to repurchase (45,188) (45,127)
(55,227) (48,448)
Net current liabilities (20,248) (29,941)
Total assets less current liabilities 368,384 347,022
Non-current liabilities
Derivatives held at fair value through profit or loss (1,540) (1,223)
Net assets 366,844 345,799
Capital and reserves
Stated capital 375,089 353,041
Capital reserve (20,487) (18,973)
Revenue reserve 12,242 11,731
Total shareholders’ funds 366,844 345,799
Net asset value per ordinary share 170.32p 170.87p
Number of ordinary shares in issue at the period end – 215,379,323 202,379,323
note 6
Condensed Statement of Cash Flows
Six months to Six months to
30 June 30 June
2025 2024
Cash flow from operating activities
Profit before finance costs and taxation 12,032 12,156
Tax on overseas income (45) (14)
Adjustment for:
Purchases of investments (76,528) (82,738)
Sales of investments 68,984 58,041
(7,544) (24,697)
Increase/(decrease) from securities sold under 61 (5,364)
agreements to repurchase
Loss/(profit) on investments held at fair value 4,606 (2)
Net movement from derivative instruments – currency (4,107) 794
hedges and CDS
(Increase)/decrease in receivables (1,159) 1,390
Increase in payables 30 63
Net cash inflow/(outflow) from operating activities 3,874 (15,674)
Cash flow from financing activities
Finance cost paid (690) (894)
Net proceeds from issue of new shares 21,437 24,723
Dividends paid - note 5 (12,500) (10,766)
Cost of shares issued – (124)
Net cash inflow from financing activities 8,247 12,939
Net increase/(decrease) in cash and cash equivalents 12,121 (2,735)
Cash and cash equivalents at the start of the period 8,153 8,138
Cash and cash equivalents at the end of the period 20,274 5,403
Reconciliation of cash and cash equivalents to the
Balance Sheet is as follows:
Cash held at custodian 8,844 4,913
Invesco Liquidity Funds plc – Sterling 11,430 490
Cash and cash equivalents 20,274 5,403
Cash flow from operating activities includes:
Dividends received 413 151
Interest received 14,443 12,017
At At
1 January Cash 30 June
2025 flows 2025
Reconciliation of net debt £’000 £’000 £’000
Cash and cash equivalents 8,153 12,121 20,274
Securities sold under agreements to repurchase (45,127) (61) (45,188)
Total (36,974) 12,060 (24,914)
Notes to the Condensed Financial Statements
1. Basis of Preparation
The condensed financial statements have been prepared using the same accounting policies as those adopted in the Company’s 2024 annual financial report. They have been prepared on an historical cost basis, in accordance with the applicable International Financial Reporting Standards (IFRS), as adopted by the
2. Income
Six months to Six months to
30 June 30 June
2025 2024
£’000 £’000
Income from investments:
UK dividends 252 94
UK investment income – interest 6,812 5,685
Overseas dividends 123 57
Overseas investment income – interest 7,378 6,147
14,565 11,983
Other income:
Deposit interest 80 114
Other income 46 43
126 157
Total income 14,691 12,140
3. Management Fees and Finance costs
Investment management fees and finance costs are allocated 50% to capital and 50% to revenue (2024: 50% to capital and 50% to revenue).
Finance costs relate to interest payable on borrowings from securities sold under agreements to repurchase (repo) or bank overdrafts. In some instances, interest on repo is negative i.e. receivable and has been netted against interest payable, shown within finance costs, as they relate to borrowings utilised by the Company.
4. Taxation
The Company is subject to Jersey income tax at the rate of 0% (2024: 0%). The overseas tax charge consists of irrecoverable withholding tax.
5. Dividends paid on Ordinary Shares
Six months to Six months to
30 June 2025 30 June 2024
pence £’000 pence £’000
Interim dividends in respect of previous period 3.0625 6,206 2.8750 5,212
First interim dividend 3.0625 6,294 2.8750 5,554
Total 6.1250 12,500 5.7500 10,766
Dividends paid in the period have been charged to revenue except for £118,000 which was charged to stated capital (six months to 30
A second interim dividend of 3.0625p (2024: 2.875p) has been declared and will be paid on
6.
Allotted ordinary shares of no par value.
Six months to Year to
30 June 31 December
2025 2024
Stated capital:
Brought forward £353,041,000 £316,793,000
Net issue proceeds £22,166,000 £36,762,000
Dividends paid from stated capital £(118,000) £(514,000)
Carried forward £375,089,000 £353,041,000
Number of ordinary shares:
Brought forward 202,379,323 180,702,596
Issued in the period 13,000,000 21,676,727
Carried forward 215,379,323 202,379,323
Per share:
– average issue price 171.37p 170.44p
7. Classification Under Fair Value Hierarchy
Note 20 of the 2024 annual financial report sets out the basis of classification.
At 30 June 2025 At 31 December 2024
Level 1 Level 2 Level 3 Level 1 Level 2 Level 3
£’000 £’000 £’000 £’000 £’000 £’000
Financial assets designated at
fair value through profit
or loss:
– Fixed interest securities(1) – 304,593 1,064 – 289,607 969
– Convertibles – 64,078 – – 64,897 –
– Government – 10,285 – – 10,458 –
– Preference 2,940 – 3,661 4,513 – 3,661
– Equities 30 – 1,981 63 5 2,790
Derivative financial
instruments:
- Currency hedges – 2,518 – – (1,906) –
- Credit default swaps – (1,540) – – (1,223) –
Total for financial assets 2,970 379,934 6,706 4,576 361,838 7,420
(1) Fixed interest securities include both fixed and floating rate securities. The directors consider the floating rate securities held by the Company to be fixed in nature due to their characteristics, including a predictable income stream.
8. Status of Half-Yearly Financial Report
The financial information contained in this Half-Yearly Financial Report, which has not been audited by the Company’s auditor, does not constitute statutory accounts as defined in Article 104 of Companies (Jersey) Law 1991. The financial information for the half year ended
By order of the Board
Company Secretary
Glossary of Terms and Alternative Performance Measures
Alternative Performance Measure (‘APM’)
An APM is a measure of performance or financial position that is not defined in applicable accounting standards and cannot be directly derived from the financial statements. The calculations shown in the corresponding tables are for the six months ended
Premium/(discount) (‘APM’)
Premium is a measure of the amount by which the mid-market price of an investment company share is higher than the underlying net asset value of that share. Discount is a measure of the amount by which the mid-market price of an investment company share is lower than the underlying net asset value (‘NAV’) of that share. If the shares are trading at a premium the result of the below calculation will be positive and if they are trading at a discount it will be negative. In this Half-Yearly Financial Report the premium/(discount) is expressed as a percentage of the net asset value per share and is calculated according to the formula set out below.
30 June 31 December
2025 2024
Share price a 172.50p 174.00p
Net asset value per share b 170.32p 170.87p
Premium c = (a-b)/b 1.3% 1.8%
Modified Duration
Modified Duration is regarded as a measure of the volatility of a portfolio, as, with all other risk factors being equal, bonds with higher durations have greater price volatility than bonds with lower durations. Modified duration measures the change in the value of a bond (or portfolio) in response to a change in 100 basis-point (1%) change in interest rates. For example, in general this would mean that a 1% rise in interest rates leads to a 1% fall in the value of the bond or portfolio.
Gearing
The gearing percentage reflects the amount of borrowings that a company has invested. This figure indicates the extra amount by which net assets, or shareholders’ funds, would move if the value of a company’s investments were to rise or fall. A positive percentage indicates the extent to which net assets are geared; a nil gearing percentage, or ‘nil’, shows a company is ungeared. A negative percentage indicates that a company is not fully invested and is holding net cash as described below.
There are several methods of calculating gearing and the following has been used in this report:
Gross Gearing (‘APM’)
This reflects the amount of gross borrowings in use by a company and takes no account of any cash balances. It is based on gross borrowings as a percentage of net assets.
30 June 31 December
2025 2024
£’000 £’000
Securities sold under agreements to repurchase 45,188 45,127
(repo financing)
Gross borrowings a 45,188 45,127
Net asset value b 366,844 345,799
Gross gearing c = a/b 12.3% 13.1%
Net gearing reflects the amount of net borrowings invested, i.e. borrowings less cash and cash equivalents (incl. investments in money market funds). It is based on net borrowings as a percentage of net assets. Net cash reflects the net exposure to cash and cash equivalents, as a percentage of net assets, after any offset against total borrowings.
30 June 31 December
2025 2024
£’000 £’000
Securities sold under agreement to repurchase 45,188 45,127
(repo financing)
Less: cash and cash equivalents including margin (24,401) (10,936)
Net borrowings a 20,787 34,191
Net asset value b 366,844 345,799
Net gearing c = a/b 5.7% 9.9%
Net Asset Value (‘NAV’)
Also described as shareholders’ funds, the NAV is the value of total assets less liabilities. Liabilities for this purpose include current and long-term liabilities. The NAV per ordinary share is calculated by dividing the net assets by the number of ordinary shares in issue. For accounting purposes assets are valued at fair (usually market) value and liabilities are valued at par (their repayment – often nominal – value).
Return
The return generated in a period from the investments including the increase and decrease in the value of investments over time and the income received.
Total Return
Total return is the theoretical return to shareholders that measures the combined effect of any dividends paid together with the rise or fall in the share price or NAV. In this Half-Yearly Financial Report these return figures have been sourced from LSEG Data & Analytics who calculate returns on an industry comparative basis, taking the Net Asset Values and Share Prices for the opening and closing periods and adding the impact of dividend reinvestments for the relevant periods.
Net Asset Value Total Return (‘APM’)
Total return on net asset value per share, with debt at market value, assuming dividends paid by the Company were reinvested into the shares of the Company at the NAV per share at the time the shares were quoted ex-dividend.
Share Price Total Return (‘APM’)
Total return to shareholders, on a mid-market price basis, assuming all dividends received were reinvested, without transaction costs, into the shares of the Company at the time the shares were quoted ex-dividend.
Net Asset Share
Six Months Ended 30 June 2025 Value Price
As at 30 June 2025 170.32p 172.50p
As at 31 December 2024 170.87p 174.00p
Change in period a –0.3% -0.9%
Impact of dividend reinvestments(1) b 3.7% 3.7%
Total return for the period c = a+b 3.4% 2.8%
Net Asset Share
Year Ended 31 December 2023 Value Price
As at 31 December 2024 170.87p 174.00p
As at 31 December 2023 168.58p 171.00p
Change in year a 1.4% 1.8%
Impact of dividend reinvestments(1) b 7.1% 7.0%
Total return for the year c = a+b 8.5% 8.8%
(1)
Total dividends paid during the period of 6.125p (
Directors, Investment Manager and Administration
Directors
☎ +44 (0) 1491 417 000
www.invesco.co.uk/investmenttrusts
Manager’s Website
Information relating to the Company can be found on the Manager’s website, at https://www.invesco.com/uk/en/investment-trusts/invesco-bond-income-plus-limited.html
The contents of websites referred to in this document, or accessible from links within those websites, are not incorporated into, nor do they form part of, this interim report.
Company Secretary, Administrator and Registered Office
PO Box 1075
28 Esplanade
Jersey JE4 2QP
Company Secretarial Contact:
☎ +44 (0) 1534 700000
General Data Protection Regulation
The Company’s privacy notice can be found at:
Corporate Broker
Winterflood Investment Trusts
Riverbank House
EC4R 3GA
Independent Auditor
37 Esplanade
Jersey JE1 4XA
Depositary, Custodian & Banker
Invesco Client Services
Invesco has a Client Services Team available from
☎ 0800 085 8677
www.invesco.co.uk/investmenttrusts
Registrar
Jersey JE1 1ES
☎ +44 (0) 370 707 4040
Shareholders who hold shares directly and not through a Savings Scheme or ISA and have queries relating to their shareholding should contact the Registrar’s call centre on the above number.
Calls are charged at the standard geographic rate and will vary by provider.
Calls from outside the
Shareholders holding shares directly can also access their holding details via Computershare’s website:
http://www.investorcentre.co.uk/je
The Registrar provides an on-line share dealing service to existing shareholders who are not seeking advice on buying or selling via Computershare’s website http://www.investorcentre.co.uk/je
For queries relating to shareholder dealing contact:
☎ +44 (0) 370 703 0084
Calls are charged at the standard geographic rate and will vary by provider. Calls from outside the
Dividend Re-Investment Plan
The Registrar also manages a Dividend Re-Investment Plan for the Company. Shareholders wishing to re-invest their dividends should contact the Registrar as detailed above.
NATIONAL STORAGE MECHANISM
A copy of the Half-Yearly
Financial Report will be
submitted shortly to the National Storage Mechanism ("NSM") and will be available for inspection at the NSM, which is situated at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
.
Hard copies of the Half-Yearly Financial Report will be posted to shareholders. Copies may be obtained during normal business hours from the Company's Registered Office,
Company Secretary
Telephone: 01534 700000
