Invesco Bond Income Plus hikes dividend, says tariffs are 'worrying'
Invesco Bond Income Plus Ltd on Thursday said it underperformed a comparative index in 2024 but increased its dividend as net asset value rose.
The UK investment company, which focuses on bonds and other fixed-interest securities, said its net asset value total return was positive 8.5% for 2024.
The return was below the 10.2% achieved by the ICE Bank of America Merrill Lynch European Currency High Yield index, Chair Tim Scholefield said.
Scholefield noted that the return was above the average of 4.6% for funds in the Investment Association Sterling Strategic Bond Sector.
‘The under-performance against the index is attributable to a number of factors. Our managers chose to hold a higher credit quality portfolio, on average, than the index. The portfolio had some unhedged currency exposure (non-GBP) and the pound was relatively strong in 2024. The portfolio also gained and lost some performance through individual holdings,’ said Chair Tim Scholefield.
The net asset value per ordinary share increased 1.4% to 170.87 pence at the end of 2024 from 168.58 pence at the end of 2023.
Invesco declared a total dividend for 2024 of 11.69 pence, up 1.6% from 11.50 pence in 2023. The company is targeting a dividend of 12.25 pence per share for 2025, which would be an increase of 4.8% from the 2024 pay out.
Looking ahead, Chair Tim Scholefield said the imposition of tariffs from US is a ‘worrying development and a potential threat to the global economic outlook’ which adds to ‘a sense of heightened global geopolitical uncertainty’.
Scholefield said: ‘The company has consistently provided shareholders with an attractive dividend, this despite in recent years an ever changing and uncertain macroeconomic environment, the shock of a global pandemic and heightened geopolitical uncertainty. I am confident that our successful and long established investment process, together with the powers we have as an investment trust, will allow us to build on our strong dividend income record in 2025 despite the uncertain outlook.’
Shares in Invesco Bond Income Plus were up 0.5% at 172.89 pence in London on Thursday afternoon.
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