Invesco Bond Income Plus (BIPS) looks to extend its share issuance programme; JPMorgan Global Core Real Assets (JARA) makes third return of capital under its managed wind-down; European Smaller Companies (ESCT) starts 5% dividend pay-out policy it promised following its merger with European Assets Trust last year; and Strategic Equity Capital (SEC) fund manager Ken Wotton remains positive on the outlook for the UK smaller companies portfolio despite a disappointing end to 2025.
Invesco Bond Income Plus (BIPS), the £418m, 7%-yielding loan and bond fund, is publishing a circular and calling an extraordinary general meeting in Jersey for shareholders to renew the company’s authority to issue up to another 20% of new shares. Since the last annual general meeting in June, BIPS has issued 28.9m shares or 68.2% of the total issuance approved by investors at the AGM. This leaves it with the capacity to issue a further 13.5m shares which at the current rate of demand is unlikely to be sufficient, hence the need for an EGM. The fund intends to undertake a share placing and retail offer that will close mid-February with further details to be announced. Investor demand for the fund managed by Rhys Davies and Edward Craven at Invesco has kept BIPS at an average 1.5% premium above net asset value since the start of last year.
James Carthew, head of investment company research at QuotedData, said: “It is great to see at least one part of the investment companies sector thriving. Shareholders should be happy to recommend BIPS’ new share issuance limits, which should help boost liquidity and the NAV as the shares will be issued at a premium. My only reservation is that demand may still exceed the extra supply. BIPS manager Rhys Davies will be on our weekly show on 30 January, one of three managers with income producing ideas for your ISA.”
JPMorgan Global Core Real Assets (JARA) is to return £20.5m, or 28.9% of its share capital, to shareholders in the third compulsory purchase of shares since it entered a managed wind-down in December 2024. The shares will be bought back at 94.055814p which is the net asset value per share at 31 December minus costs. Following this distribution, JARA will have realised and returned 71.2% of its assets in the wind-down process.
European Smaller Companies (ESCT) has declared its first dividend under the new 5%-pay-out policy it undertook as part of its merger with its higher yielding rival European Assets Trust last October. The board of the £792m investment trust will pay an interim dividend for the second quarter of its financial year to 30 June of 2.81p per share on 27 February. The shares will go ex-dividend on 29 January. Net asset value (NAV) per share at 30 June 2025 was 224.4p. Under the new policy it is anticipated that dividends of at least 2.81p will also be paid in May and August.
Strategic Equity Capital (SEC), the £144m UK smaller companies trust run by Ken Wotton at Gresham House, saw net asset value fall 5.4% in the fourth quarter of last year, underperforming the FTSE Small Cap index which, excluding other investment companies, delivered a flat 0% return. Gains from Costain, ActiveOps and Tribal were offset by falls in Diaceutics, Everplay and Brooks Macdonald, all on no specific company news. The fund made no new investments but several follow-on investments, including XPS Pensions and Fintel, the UK fintech and support services group. One full exit was made from engineer Ricardo following its all-cash takeover by WSP Global at a 28% premium. Wotton said the portfolio was well positioned for a recovery with its high quality stocks possessing good earnings growth forecasts, high margins and strong market positions, although many traded at historically low valuations. “If the market fails to rate these businesses appropriately then it is likely we will continue to see an elevated level of takeover approaches for businesses where private equity and strategic buyers appreciate the value on offer.” SEC has returned a total of 33.7% over three years and stands on an 8% discount.
Aquila European Renewables (AERI) confirms that its listing on Euronext Growth Dublin was cancelled on Friday 16 January as scheduled. The delisting does not affect its listing on the main market of the London Stock Exchange.
