REG-Invesco Bond Income Plus Ltd: Half-Year Report
15/08/2025 07:02
LEI: 549300JLX6ELWUZXCX14
INVESCO BOND INCOME PLUS LIMITED
HALF-YEARLY FINANCIAL REPORT FOR THE SIX MONTHS ENDED 30 JUNE 2025
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
President Trump had promised he would move quickly to implement his economic
agenda and financial markets began the year in a nervous mood as investors
struggled to keep up with the pace and scale of announcements coming from the
White House. Three main policy priorities dominated the news flow. First, the
somewhat ‘on-off’ imposition of tariffs on foreign goods, particularly
from China. Secondly, reductions in income tax combined with cuts to Medicaid,
the health insurance programme for low income families, and thirdly a drive to
reduce the size of federal government.
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 President Trump and by his attacks on Jay Powell,
the chair of the Federal Reserve. Markets then regained some poise as
President Trump backtracked on some of his threatened tariffs.
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 3.0625 pence per share
during the first six months of the year, a 6.5% increase on the total dividend
declared for the same period in 2024. Moreover I am pleased to confirm that we
remain on course to meet our full year dividend target of 12.25 pence per
share.
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 30 June 2025, raising gross proceeds of £22.3 million. For the
period from 1 July 2025 to the date of this report we have issued a further
4.2m shares. Our ability to grow steadily the number of shares in issue
benefits shareholders by improving liquidity and by ensuring that the fixed
costs of running the Company are spread across a larger base.
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.
Tim Scholefield
Chairman
14 August 2025
Portfolio Managers’ Report
Portfolio Manager
Rhys Davies, CFA, Fund 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 University of
Manchester Management School. He is a CFA charterholder.
Deputy Portfolio Manager
Edward Craven, FCA, Fund Manager
Edward is a fund manager for the Invesco Fixed Interest Europe team, based in
our Henley office.
He began his career with KPMG in 2003. In 2008 he moved to The Royal Bank of
Scotland, where he worked in structured finance. He joined the team at Invesco
in 2011 as a credit analyst and became a fund manager in 2020, managing
multi-asset and high yield funds.
He holds a Master’s degree in Physics from the University of Bath. He is an
FCA qualified chartered accountant.
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 marketi returned 2.5%, bringing the
yield from 4.59% to 4.40%. Sterling investment grade bondsii 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 bondsiii, 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 Bank of England and the European Central Bank
have cut rates, by 0.5% and 1.0% respectively. Market expectations are that
they will both cut at least once more this year.
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 2021iv. On the demand side, more money has flowed into the
asset classiv. 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 30 June 2025 the share price fell from 174.0p to
172.5p. With dividends reinvested the Company delivered a positive share price
total return of 2.8%. The net asset value per share total return (with
dividends reinvested) was 3.4%.
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 GBP 7.75% 2032 (call date) subordinated bond
has performed well. Eutelsat EUR 9.75% 2029 was boosted by Europe’s
increased commitment to defence spending and desire to diversify suppliers for
satellite communications technology. Over the last few quarters we have taken
advantage of the closed-ended structure of the investment trust to build a
position in a number of smaller subordinated bank and building society
instruments. These offer higher coupons in compensation for their lower
liquidity. Several of these, including UTB Partners GBP 13% 2030 (call),
Saffron Building Society GBP 12.5% 2029 (call) and Newcastle Building Society
GBP 12.25% 2034, contributed strongly.
On the negative side, Mobico Group GBP 4.25% 2025 (call) fell sharply in price
in the second quarter. The company is struggling with problems in several of
its transport businesses which date back to the pandemic period. Ineos Quattro
EUR 6.75% 2030 was also a negative contributor in a period when cyclical and
export-sensitive businesses faced uncertainty. Another volatile name was
Thames Water Finance. We are holders of the company’s senior and Class A
bonds and we continue to work with other creditors and other parties to reach
an agreement that will deliver financial stability for the company. It’s a
lengthy process.
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 EUR 8.625%
2030 issue. We sold our position in Merlin bonds (UK theme parks) due to the
company’s high leverage and capital expenditure requirements.
The sell-off after President Trump’s initial tariff announcements offered
buying opportunities in the secondary market. We topped up on our Aviva GBP
7.75% 2032 (insurance) position at prices equating to a yield at or above 8%.
We also bought Wagamama GBP 8.5% 2030 (restaurants) for a price of 95. We had
chosen not to participate at new issue. The market volatility also gave us an
opportunity to trim our CDS position at a good price. This is a derivative we
have held for several months as we felt it offered valuable protection against
credit market volatility.
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 GBP 7.875% 2030 (leisure) and Albion Finance USD 7%
2030 (equipment rental). We increased our allocation to smaller UK bank names
with the addition of Zopa Group GBP 12.875% 2030 (banks).
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 UK Gilt Index.
ii ICE BofA Sterling Corporate Index.
iii ICE BofA European Currency High Yield Index.
iv JP Morgan European High Yield Quarterly Review, 8 July 2025.
Rhys Davies Edward Craven
Portfolio Managers
14 August 2025
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 Ukraine and ongoing conflict
in the Middle East, uncertain economic outlook in Europe, USA and the UK as a
result of geo-political tensions, evolving cyber threats (including risks
associated with artificial intelligence) and ESG factors, including climate
risk. The principal risks that follow are those identified by the Board as the
most significant after consideration of mitigating factors and are not
intended to cover all the risk categories as shown in the Internal Control and
Risk Management section on page 14 of the 2024 annual financial report.
Category and Principal Risk Description Mitigating Procedures and Controls
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 prolonged period of decline in these markets. This could be triggered by unfavourable developments globally and/or in one or more regions, such as the current conflicts in Ukraine and the Middle East, 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 An explanation of market risk and how this is addressed is given in note 19.1 to the financial statements within the 2024 annual financial report. The Portfolio Managers’ Report summarises particular macro economic factors affecting performance during the
currency exchange rates and interest rates. period and the portfolio managers’ views on those most relevant to the outlook for the portfolio.
Regulatory or Fiscal Changes The Company is incorporated in Jersey which is a low tax jurisdiction subject to global scrutiny. Any adverse global regulatory or fiscal measures taken against such low tax jurisdictions, could negatively impact the Company. The Board receives regular reports from the Manager and Company Secretary which highlight any proposed changes to the regulatory/fiscal regimes which might impact the Company. Jersey has recently received a positive report from MoneyVal, the Council of
Europe’s permanent monitoring body. MoneyVal concludes that Jersey’s effectiveness in preventing financial crime is among the highest level found in jurisdictions evaluated around the world. More information can be found here:
https://www.gov.je/News/2024/Pages/Jersey%E2%80%99s
StrengthInCombattingFinancialCrimeIsRecognised.aspx
Wide Discount leading to Shareholder Dissatisfaction The Company’s shares are subject to market movements and can trade at a premium or discount to NAV. Should the Company’s shares trade at a significant discount compared to its peers, then shareholder dissatisfaction may result if shareholders cannot realise the value of their investment close to NAV, with the ultimate risk that arbitragers join the share register. The Board receives regular reports from both the Manager and the Company’s broker on the Company’s share price performance and level of discount (or premium), together with regular reports on marketing and meetings with shareholders and prospective
investors. The Board recognises the importance of the Company’s scale in terms of the aggregate value of its shares in the market (‘market cap’) in creating liquidity and the benefit of a wide shareholder base, and has the ability to both issue and buy
back shares to assist with market volatility. The foundation to this lies in solid investment performance and an attractive level of dividend.
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 have a materially detrimental impact on the operations of the Company and affect its ability to pursue successfully its 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. Details of how the Board monitors the services provided by the Manager and the other TPPs, and the key elements designed to provide effective internal control, are included in the internal control and risk management section on page 14 of the 2024 annual
financial report.
Cyber Risk The Company’s operational structure means that cyber risk (information technology and physical security, including risks associated with Artificial Intelligence) predominantly arises at its TPPs. This cyber risk includes fraud, sabotage or crime perpetrated against the Company or any of its TPPs. The Audit & Risk Committee on behalf of the Board periodically reviews TPPs’ service organisation control reports and meets with representatives of the Manager’s Investment Management, Compliance, Internal Audit and Investment Trust teams as well as the
Company Secretary’s senior staff and Compliance team. The Board receives periodic updates on the Manager’s and the Company Secretary’s information security arrangements. The Board monitors TPPs’ business continuity plans and testing – including their
regular ‘live’ testing of workplace recovery arrangements.
Business Continuity Risk Impact of a major event on the operations of the service providers, including any prolonged disruption. 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 the impact on its operations so that the Company can continue
to trade, meet regulatory obligations, report and meet shareholder requirements. The Board receives periodic reports from the 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 30 JUNE 2025
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 Informatica Technology Italy 6,910 1.8
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
Invesco Bond Income Plus Limited is a Jersey domiciled investment company and
is regulated by the Jersey Financial Services Commission.
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.
Heather MacCallum
Audit & Risk Committee Chair
14 August 2025
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 loss – (4,606) (4,606) – 2 2
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 fees – note 3 (581) (581) (1,162) (532) (532) (1,064)
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 taxation 12,938 (1,514) 11,424 10,767 529 11,296
Taxation – note 4 (45) – (45) (14) – (14)
Profit/(loss) after taxation 12,893 (1,514) 11,379 10,753 529 11,282
Return per ordinary share 6.26p (0.73)p 5.53p 5.66p 0.28p 5.94p
Weighted average number of ordinary shares
in issue during the period 205,884,845 189,998,186
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 European Union. The profit/(loss) after
taxation is the total comprehensive income/(loss). The supplementary revenue
and capital columns are both prepared in accordance with the Statement of
Recommended Practice issued by the Association of Investment Companies. All
items in the above statement derive from continuing operations of the Company.
No operations were acquired or discontinued in the period.
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 6 22,166 – – 22,166
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 6 24,600 – – 24,600
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 – note 6 215,379,323 202,379,323
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 agreements to repurchase 61 (5,364)
Loss/(profit) on investments held at fair value 4,606 (2)
Net movement from derivative instruments – currency hedges and CDS (4,107) 794
(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 European Union and, where possible, in accordance with the
Statement of Recommended Practice for Financial Statements of Investment Trust
Companies and Venture Capital Trusts, updated by the Association of Investment
Companies in July 2022 (AIC SORP).
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 June 2024: £336,000).
This amount is equivalent to the income accrued on the new shares issued in
the period (see note 6).
A second interim dividend of 3.0625p (2024: 2.875p) has been declared and will
be paid on 20 August 2025 to ordinary shareholders on the register on 18 July
2025.
6. Stated Capital, including Movements
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 30 June 2025 and the half
year ended 30 June 2024 has not been audited. The figures and financial
information for the year ended 31 December 2024 are extracted and abridged
from the latest audited accounts and do not constitute the statutory accounts
for that year.
By order of the Board
JTC Fund Solutions (Jersey) Limited
Company Secretary
14 August 2025
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 30 June 2025 and the year ended 31 December 2024. The
APMs listed here are widely used in reporting within the investment company
sector and consequently aid comparability, providing useful additional
information.
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 (repo financing) 45,188 45,127
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 or Net Cash (‘APM’)
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 (repo financing) 45,188 45,127
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 (31 December 2024:
11.50p) reinvested at the NAV or share price on the ex-dividend date. NAV or
share price falls subsequent to the reinvestment date consequently further
reduce the returns, vice versa if the NAV or share price rises.
Directors, Investment Manager and Administration
Directors
Tim Scholefield (Chairman)
Heather MacCallum (Audit & Risk Committee Chair and Senior Independent
Director)
Christine Johnson
Caroline Dutot
Arun Kumar Sarwal
Alternative Investment Fund Manager (Manager)
Invesco Fund Managers Limited
Perpetual Park
Perpetual Park Drive
Henley-on-Thames
Oxfordshire RG9 1HH
☎ +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
JTC Fund Solutions (Jersey) Limited
PO Box 1075
28 Esplanade
St Helier
Jersey JE4 2QP
Company Secretarial Contact: Hilary Jones
☎ +44 (0) 1534 700000
invesco@jtcgroup.com
General Data Protection Regulation
The Company’s privacy notice can be found at:
www.invesco.co.uk/bips
Corporate Broker
Winterflood Investment Trusts
Riverbank House
2 Swan Lane
London
EC4R 3GA
Independent Auditor
PricewaterhouseCoopers CI LLP
37 Esplanade
St Helier
Jersey JE1 4XA
Depositary, Custodian & Banker
The Bank of New York Mellon (International) Limited
160 Queen Victoria Street
London EC4V 4LA
Invesco Client Services
Invesco has a Client Services Team available from 8.30am to 6.00pm every
working day. Please feel free to take advantage of their expertise by ringing:
☎ 0800 085 8677
www.invesco.co.uk/investmenttrusts
Registrar
Computershare Investor Services (Jersey) Limited
13 Castle Street
St Helier
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 United Kingdom will be charged at the applicable
international rate. Lines are open 8.30am to 5.30pm Monday to Friday
(excluding UK public holidays).
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 United Kingdom will be charged at the applicable
international rate. Lines are open 8.30am to 5.30pm Monday to Friday
(excluding UK public holidays).
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, JTC Fund Solutions (Jersey) Limited, PO Box 1075,
28 Esplanade, St Helier, Jersey JE4 2QP or the Manager's website via the
directory found at the following link: www.invesco.co.uk/bips.
Hilary Jones
JTC Fund Solutions (Jersey) Limited
Company Secretary
Telephone: 01534 700000
14 August 2025
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