Invesco Bond Income Plus Limited
Income you can set your
clock by
†
Annual Financial Report
Year Ended 31 December 2025
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Contents
1
2
Strategy
Overview:
Financial Information and Performance Statistics ....................3
Chairman’s Statement .............................................................6
Strategic Report:
Portfolio Managers’ Report .....................................................9
Business Review ...................................................................11
Investments:
Geographic and Industry Analyses ........................................21
Currency Exposure ...............................................................22
Bond Rating Analysis ............................................................23
Investments in Order of Valuation .........................................24
Governance
Directors ..............................................................................33
Directors’ Report ..................................................................34
The Company’s Corporate Governance Framework ................37
Corporate Governance Statement .........................................38
Audit & Risk Committee Report ............................................41
Directors’ Remuneration Report ............................................43
Directors’ Responsibilities Statement .....................................45
Investment Objective
The Company’s investment objective is to seek to obtain capital growth
and high income from investment, predominantly in high-yielding
fix
ed-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.
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1
3
4
Financial
Independent Auditor’s Report ...............................................47
Statement of Comprehensive Income ....................................52
Statement of Changes in Equity ............................................53
Balance Sheet ......................................................................54
Statement of Cash Flows ......................................................55
Notes to the Financial Statements ........................................56
Shareholder
Notice of Annual General Meeting .........................................74
Shareholder Information .......................................................76
Advisers and Principal Service Providers ...............................77
Glossary of Terms and Alternative Performance Measures ....78
Alternative Investment Fund Managers Directive Disclosures ..82
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Invesco Bond Income Plus Limited
1
Strategy
Overview:
Financial Information and Performance Statistics ..............................3
Chairman’s Statement ......................................................................6
Strategic Report:
Portfolio Managers’ Report ...............................................................9
Business Review .............................................................................11
Investments:
Geographic and Industry Analyses ..................................................21
Currency Exposure..........................................................................22
Bond Rating Analysis ......................................................................23
Investments in Order of Valuation ..................................................24
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3
Financial Information and
Performance Statistics
Total Return Statistics
(1)(2)
with dividends reinvested
Change for the year (%)
l
2025
l
2024
Net asset value – total return
with dividends reinvested
8.7%
8.5%
Share price – total return
with dividends reinvested
8.0%
8.8%
Capital Statistics
At 31 December 2025 2024 % change
Net assets (£’000) 410,275 345,799 +18.6
Net asset value per ordinary share
(2)
172.87p 170.87p +1.2
Share price
(1)
175.00p 174.00p +0.6
Premium
(2)
1.2% 1.8%
Gearing
(2)
:
– gross gearing 9.3% 13.1%
– net gearing 2.8% 9.9%
Performance Statistics
Year Ended 31 December 2025 2024 % change
Revenue earnings per ordinary share 13.07p 12.08p
Capital earnings per ordinary share 1.08p 1.57p
Tota l earnings per ordinary share 14.15p 13.65p
Dividend per ordinary share for the year 12.2500p 11.6875p +4.8
Ongoing Charges Ratio
(2)
0.88% 0.89%
(1) Source: LSEG Data & Analytics.
(2) Alternative Performance Measure (APM). See Glossary of Terms and Alternative Performance Measures
on pages 78 to 81 of the financial report for details of the explanation and reconciliations of APMs.
†
Front Page - Capital at risk. Income not guaranteed.
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Ten Year Record
Dividends on Net asset
ordinary shares value per
Ongoing ordinary Share
Year to Amount Rate charges Net Assets share price
31 December £’000 p % £’000 p p
2016 8,995 10.0000 1.01 174,193 189.32 191.00
2017 9,429 10.0000 0.98 186,634 195.40 199.50
2018 9,648 10.0000 0.98 173,489 178.69 175.00
2019 9,870 10.0000 1.02 192,186 192.11 197.00
2020 10,173 10.0000 0.99 197,675 194.29 189.75
2021
(1)(2)
16,452 10.7500 0.87 326,730 193.82 187.25
2022 19,127 11.2500 0.86 281,089 162.20 166.00
2023 20,556 11.5000 0.91 304,629 168.58 171.00
2024 23,168 11.6875 0.89 345,799 170.87 174.00
2025 27,299 12.2500 0.88 410,275 172.87 175.00
(1) On 19 May 2021 and following a contractual scheme of reconstruction, after which 66,836,392 new ordinary shares were issued for ne
t proceeds of £130,092,000 to the
shareholders of Invesco Enhanced Income Limited, in lieu of their investment in that Company.
(2) Following the merger and with effect from 19 May 2021 the management fee was reduced from an annual fee of 0.75% to 0.65% of tot
al assets less current liabilities.
Ten Year Total Return
All figures rebased to 100 at 31 December 2015.
Source: LSEG Data & Analytics.
75
100
125
150
175
200
Dec-25Dec-24Dec-23Dec-22Dec-21Dec-20Dec-19Dec-18Dec-17Dec-16Dec-15
Share Price
Net Asset Value
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6
High yield markets benefitted from a
largely favourable macroeconomic and
political environment in 2025. Modest
economic growth and subdued inflation
allowed central banks to continue to ease
monetary policy and in the UK the Bank
of England reduced interest rates on four
occasions while in the USA the Federal
Reserve implemented three rate cuts in
2025. In contrast to 2024 politics took
more of a backseat although President
Trump’s ‘Liberation Day’ tariff
announcements on 2 April 2025 did
result in a bout of market nervousness.
High yield markets made good progress
and credit spreads – a key barometer of
market confidence – settled around the
lower end of their historical ranges.
Performance
The Company’s NAV and share price total
returns for the year were 8.7% and 8.0%,
respectively. The 8.7% NAV return was
higher than both the 7.4% achieved by the
ICE Bank of America Merrill Lynch
European High Yield Index (‘the Index’)
and the average return of 7.3% for funds
in the Investment Association Sterling
Strategic Bond Sector. The Company’s
investment performance continues to
compare favourably with the Index over
the longer term. For the five and ten years
to the end of 2025 the Company’s NAV
total return was 23.9% and 76.5%
respectively compared to total returns of
25.4% and 68.6% for the Index.
Income Account
It is pleasing to report that we were once
again able to increase the dividend paid to
shareholders. We announced a dividend
for 2025 of 12.25p per share, a 4.8%
increase on the 11.6875p per share for
2024. Our dividend yield of 7%
comfortably exceeded the rate of inflation
and the dividend was 1.07x covered by
earnings.
The dividend was paid in four instalments,
with the fourth dividend payment on the
20 February 2026 in the form of an
interim dividend. Paying the final
instalment in the form of an interim
dividend means that it can be made
earlier than would be the case had we
declared a final dividend since this would
require approval at the Annual General
Meeting later in the year.
We expect to continue the Company’s long
record of providing shareholders with a
high level of income relative to interest
rates in 2026 and our dividend target of
12.25p per share remains unchanged.
The Company’s long-term success in
providing shareholders with a consistently
high level of income is the result of our
Manager’s rigorous investment process
and expertise in managing high yield
portfolios. Moreover, we are able to
enhance returns by making use of the
powers available to us as an investment
company, for example in our use of
gearing which I discuss in more detail later
in this Statement. Lastly, we retained our
position as the largest company in our
Association of Investment Companies
(‘AIC’) sector and our size means that we
are in a relatively good position to spread
the costs of running the Company.
Discount/Premium
The vast majority of investment trusts
have traded at wide discounts to their
NAV’s since the start of 2022. Despite
this backdrop, demand for the Company’s
shares remained very encouraging and
our share price remained at a healthy
premium to NAV throughout 2025,
ending the year at a premium of 1.2%.
Where the Board is able to reduce the gap
between our share price and NAV we will
take action and in 2025 we continued to
issue shares to meet the strong demand
for shares. We issued a total of
34,950,000 shares during the year and
since the start of 2026 we have issued a
further 20,122,588 shares, including a
successful placing of 14.37 million shares
in February.
Invesco Bond Income Plus Limited is the
product of the merger in May 2021
between City Merchants High Yield Trust
Limited and Invesco Enhanced Income
Limited and as we approach the fifth
anniversary of the merger it is extremely
pleasing to be able to report that the
Highlights
• Net asset value (‘NAV’) and share
price total returns with dividends
reinvested for the year of 8.7% and
8.0% respectively
(1)
.
• Shares traded at a premium for
majority of 2025 leading to a strong
demand for shares resulting in
34.95m shares being issued, raising
gross proceeds of £60.50m.
• In addition strong issuance demand
continued in 2026 with a further
20.12m shares issued, including a
successful placing and retail offer,
raising £34.97m in gross proceeds.
• Dividend increased to 12.25p per
share for 2025. Dividend target of
12.25p per share unchanged for
2026.
• Dividend continues to be fully covered
by current year net revenue along
with revenue reserve growth.
Chairman’s
Statement
(1) Alternative Performance Measure (‘APM’).
See Glossary of Terms and Alternative
Performance Measures on pages 78 to 81 of
the financial report for details of the
explanation and reconciliations of APMs.
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Company has grown its shares in issue by a total 40.8% in the
period following the merger. New shares are issued at a small
premium to NAV which ensures that existing shareholders are not
disadvantaged while the growth in the Company also benefits
shareholders by increasing the liquidity of our shares.
Ongoing Charges
A key objective for the Board is to ensure that the costs incurred
in managing the Company are competitive and we use the
Company’s ongoing charges ratio (OCR) to measure these costs.
Details of the OCR can be found on page 12. The OCR for the
year was 0.88% compared to 0.89% in the previous year. The
growth in our shares in issue discussed in the previous paragraphs
provides a further benefit to shareholders in that it allows us to
spread the Company’s fixed costs over a larger base and hence
to place downward pressure on our OCR. I am pleased to report
that our OCR remains the lowest within our AIC sector (Debt –
Loans and Bonds).
Gearing
The degree to which the portfolio is geared is determined by the
Portfolio Managers according t
o their assessment of the
opportunities and risks within the high yield market. The
maximum amount of borrowing is 30% of total assets and
throughout the year the Company maintained a geared portfolio.
As at 31 December 2025 gross gearing was 9.3% (13.1% as at
the 31 December 2024). Net gearing was 2.8% at year-end
compared to 9.9% at the start of the year. Our preferred method
of gearing remains the use of repurchase agreements (‘repo
agreements’), which are described in more detail on page 12.
The Board
In June this year I will complete nine years with the Board and
consequently, in accordance with good corporate governance
practice, I will not seek re-election at the 2026 AGM. As a result
of our succession planning and subject to regulatory approval, I
am delighted to report that Mark Bridgeman will succeed me as
Chair. Mark will be appointed to the Board following the
conclusion of the 2026 AGM. Mark’s background is in investment
management and he will bring extensive financial and leadership
qualities to the Board. I have no doubt that the Company will
continue to flourish under his leadership. I would like to take this
opportunity in what is my final Chairman’s Statement to thank all
colleagues past and present who have ensured that my time with
the Company has been enjoyable and rewarding.
Marketing, Investor Engagement and
Communication
A primary focus for your Board, both last year and continuing into
the current year, is to raise the Company’s profile and expand the
pool of investors familiar with its investment proposition and
strong track record. Ultimately, the Board aims to grow the
Company’s size, which is expected to enhance share liquidity and
reduce the ongoing charges ratio.
As part of this focus, over the last 12 months the Board has
reviewed the Company’s marketing and communications strategy
and
refreshed the value proposition and agreed improvements to
the Company’s dedicated page on the Investment Manager’s
website at www.invesco.co.uk/bips.
Engaging with our shareholders is of utmost importance. Over
the past year, your Investment Manager has actively sought
opportunities to meet with shareholders and prospective
investors, both virtually and in person, to discuss the Company’s
strategy, performance, and outlook. We greatly value the
feedback received. Should you wish to communicate with the
Board or the Investment Manager, please reach out via email at
investmenttrusts@invesco.com.
If you have not already done so, we encourage you to sign up
for updates on the Company, its portfolio, and insights from
your Portfolio Managers. You can do this by scanning the
QR code below with your smartphone or device, visiting
the Company’s dedicated page on the Investment Manager’s
website at https://digitalservices.invesco.com/uk/en/investment-
trusts-subscriptions, or by contacting Invesco directly at
investmenttrusts@invesco.com.
AGM
The AGM will be held on 17 June 2026 at 9.30am at the Jersey
offices of our Company Secretary. Further details of the AGM
arrangements can be found on page 35.
Outlook
The immediate outlook for high yield securities is overshadowed
by events in the Middle East. On 28 February 2026 the US and
Israel launched coordinated strikes against the Iranian leadership
and key strategic assets. Iran responded with widespread missile
and drone attacks and the consequent disruption to oil supplies
resulted in a surge in oil prices and a growing risk of rising
inflation.
At the time of writing it is unclear how or when the conflict will
be resolved and hence it is extremely difficult to reach any firm
conclusions on the outlook for global economy and financial
markets. There is a clear risk Iran may prevent shipping resuming
through the Gulf for an extended period with the result that
inflation would be higher and economic growth lower in 2026.
On the other hand if military action is concluded and the
disruption to shipping turns out to be short lived then I would
expect the global economic backdrop in 2026 to be broadly
supportive for corporate earnings, balance sheets and credit
quality.
The Company began 2026 with a relatively conservative exposure
to risk compared to its history. Net gearing is low and the overall
credit exposure is tilted towards higher quality bonds and well
diversified, giving some resilience to potential shocks. Together
with this lower-risk starting point, the Company's closed ended
structure makes it well positioned to take advantage of a sell-off
when good quality bonds could be available at deeply discounted
prices, locking in returns for the future. Furthermore, in an
uncertain world a regular, dependable source of income is key for
our shareholders and despite the challenging geopolitical outlook
I have no doubt that your Company will continue to meet this
requirement in 2026.
Tim Scholefield
Chairman
31 March 2026
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What happened in the bond
markets in 2025?
Investment in corporate bonds in
2025 was rewarded with a return
well above cash and UK
government bonds. For a third year, high
yield bonds delivered returns that were
positive and higher than investment grade.
However, returns were lower than in 2023
and 2024 and there was less incremental
return for investors who chose to take more
credit risk.
Total return for European High Yield was
7.4%
(1)
, compared to 4.3% for cash
(2)
and 5%
for UK gilts
(3)
. The sterling investment grade
market returned 7.0%
(4)
. Most of this 7.4%
came from income. The return from price
appreciation was relatively modest. Over the
course of the year, the yield to maturity of
the high yield index fell from 6.1% to 5.8%.
It peaked near 9% in 2022. The credit
spread tightened from 3.2% to 2.8%. Again,
this change is relatively modest – it was 6.8%
in 2022. In 2024 the average bond price in
the index rose from 92.0 to 97.8. In 2025
it rose from 97.8 to 98.6.
While the high yield market as a whole
outperformed investment grade, lower
credit quality did not outperform within
high yield. Spreads tightened more for
higher-quality BB than for lower-quality B
rated bonds. In fact, B spreads widened
slightly. So within high yield, prudence was
rewarded.
The return of 7.4% for high yield is a
reminder of the potential of bonds to
deliver attractive total returns in the world
of higher yields we have inhabited since
2022.
The fundamental backdrop for the market
was strong. Interest rates fell. Both the
Bank of England and the European Central
Bank cut four times (a total of 1% for each).
The market has priced in expectation of
another one or two cuts from the Bank of
England this year. The ratio of debt to
earnings and the interest coverage ratio for
European high yield companies were steady
and comfortably within the historical
range
(5)
. Issuance of bonds rose, but so did
demand. Money has been flowing into the
market steadily for more than two years
(6)
.
Viewed in the context of these factors, it
makes sense that indicators of the risk
premium in corporate debt, for example the
iTraxx XOVER index, are at multi-year lows.
But it is worth remembering that this
support has persisted, almost unbroken,
through a year of rapid and unusual political
change. Investors appear to have shown
remarkable sang-froid in the face of
increased and volatile trade tariffs, military
action and geopolitical volatility in the
Middle East and challenges to the
post-World War II system of global alliances.
How did the company perform?
Over the 12 months to
31 December 2025 the share
price rose from 174.00p to
175.00p. With dividends reinvested, the
Company delivered a share price total
return of 8.0%. The net asset value per
share total return with dividends
reinvested was 8.7%.
What drove this return?
Our portfolio is focused on higher
yielding bonds, but with a
substantial allocation to
investment grade. The starting
yield in 2025 for European high yield
bonds was 6.1% and for sterling
investment bonds 5.6%. These yields
provided the base for our returns, which
were then enhanced by bond and market
selection, our leverage strategy and our
trading.
Q
A
Q
A
Q
A
Portfolio
Managers’ Report
Q&A
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.
(1) ICE BofA European Currency High Yield Index, hedged to GBP.
(2) UK Treasury Bills 3 Months.
(3) ICE BofA UK Gilt Index.
(4) ICE BofA Sterling Corporate Index.
(5) JP Morgan, High Yield Talking Points - High Yield Issuer Fundamentals, 20 January 2026.
(6) JP Morgan, European Credit Fund Flows, 9 January 2026.
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The parts of the portfolio which made the biggest contributions
to return were, as usual, high yield corporate bonds and
subordinated financial securities. Subordinated bank debt was one
of the strongest parts of the market. Although we have become
more cautious as valuations have risen, reducing our overall
allocation, we added to positions in some high yielding, smaller
bank names. Across the corporate high yield market, we exercised
caution on valuation.
The ability to use gearing to increase income is a key feature of
the closed-ended structure of the investment trust. Gearing allows
us to add credit exposure. We use it as a tool for our general
management approach – seeking to align the level of risk with our
view of the level of available reward. As valuations have continued
to rise over the last couple of years, we have moderated the level
of gearing. At the end of 2024, gross borrowing was 13.1% and
net gearing was 9.9%. At the end of 2025, the equivalent
numbers were 9.3% and 2.8%. We manage our leverage in line
with our view of market value. This boosted returns in 2025.
2025 was a generally strong period for our markets, but it was
not without its moments! In particular, markets were weak in the
build-up to and immediate aftermath of the US import tariff
announcements in April. This was a quite short-lived sell-off, but
we used it to add to positions, both bonds we already held and
others we had chosen not to buy on the terms on which they were
originally offered to the market. This allowed us to enhance yield
and boost our total return.
Looking at the individual securities which made the largest
positive contributions to returns, financials feature – both smaller
banks we added, such as Atom and United Trust Bank (UTB),
and names bought in April, such as Aviva. Amongst the biggest
detractors there is less of a sector bias. Some lost value due to
poorer operational performance (for example, the transport
company Mobico Group), others to changes in their business
environment (for example, gaming name 888.com, hit by
changes to UK gambling taxation).
One additional factor which helped our returns was the decision
to slightly increase the portfolio’s sensitivity to interest rate
changes. Our modified duration averaged 3.8 over the year,
which meant that we benefitted more from government bond
yields and the falling rate environment than the general high yield
market.
How have you managed your asset allocation?
We seek to align our level and type of risk to the reward
available in the market. As credit markets rallied strongly
in 2023 and 2024, we reduced our exposure to credit
risk. Our allocation to high yield rated bonds fell from 80% in late-
2022 to 68% at the end of 2024. Investment grade rose.
With the much more modest change in the level of yield in 2025,
our allocations have been more stable, high yield (bonds rated
BB+ and below) declining from 65% to 58%. Investment grade has
increased more modestly from 27% to around 30%. Duration
remains slightly higher than the high yield market.
Also, with a view to aligning risk with reward in a more highly
valued market, we have reduced gross portfolio leverage from
13.1% to 9.3%.
One risk we have held a bit more of in the last couple of years is
liquidity risk. As a closed-ended vehicle, the trust does not face
the redemption risk of an open-ended fund. We therefore feel that
it is more appropriate in this portfolio to hold some bonds from
smaller bond deals, where there is consequently likely to be less
market liquidity if we want to sell. We have increased our
allocations to bonds in this category over the past several
quarters, to about 7% of our portfolio. The compensation for this
risk is higher coupons.
Index Credit Default Swaps are a useful tool to manage credit risk
by taking long or short exposure to a broad range of underlying
bonds, as opposed to buying or selling individual bonds in the
portfolio. We have used them over the course of 2025 to reduce
credit risk, as part of our wider strategy of holding a more
defensive portfolio in an environment of tighter credit spreads.
How is Environmental, Social and Governance
(‘ESG’) integrated in the investment process?
The portfolio is not bound by any specific ESG criteria.
However, ESG factors are important in our credit analysis
and our investment decisions.
We incorporate ESG considerations in our process when we
research companies, when we engage with companies and as part
of ongoing monitoring. Our credit analysts assign an ESG rating to
issuers they cover. One of the resources we benefit from as part
of the wider Invesco team is the data and the expertise of the
Invesco ESG team. The ESG team provides a wide range of services
to us, including portfolio monitoring and meetings with managers
to assess por
tfolios, along with support for meetings with
companies and deep knowledge on particular ESG issues.
Our analysts have worked hard over se
veral years to assess and
monitor the ESG factors relating to the companies they cover. In
2025, our team had 70 ESG engagements – either meetings
dedicated to ESG issues or ESG discussions within wider meetings.
These interactions tend to cover a wide range of topics across
environmental, social and governance and vary from name to
name. For example, Invesco’s recent engagement with Anglian
Water focused on environmental issues such as pollution incidents
and compliance with wastewater investigations. With Diageo, the
meeting covered emissions, biodiversity initiatives and recycling.
Governance questions tend to feature more for high yield investors
than they might for others, due to the higher proportion of
privately owned companies.
How is the bond market looking as we begin 2026?
Entering 2026, we viewed the market as well-supported
but also quite fully valued. Corporate earnings were
growing and leverage and debt-affordability metrics were
far from stressed levels. In this environment, supply of bonds was
high but was matched by demand as money flowed into the asset
class. We had a broadly positive macroeconomic outlook,
although perhaps not so rosy as many economic commentators.
Of greater concern was the tight level of credit spreads, on a
historical basis, and the potential for these to widen in 2026.
The outbreak of military conflict in the Persian Gulf has added a
great deal of risk to the economic outlook. This has been reflected
in some market weakness, but we think there is potential for
more. Disruption in energy supplies impacts inflation directly.
Expectations for interest rates have already risen substantially.
For how long the conflict persists is a crucial unknown. It will have
a bearing on the size of the inflationary impulse and on the extent
to which growth is affected as well as inflation. Credit spreads in
our market have widened in recent weeks but they are still
relatively low.
We are confident that we can deliver the income needed for the
trust’s dividends while still aligning risk with reward prudently. As
set out earlier in this report, our portfolio is relatively
conservative, with substantial investment grade exposure and less
leverage. This positioning was built on the view we have had for
some time – that valuations were high and the reward for risk was
not very attractive. We think it will serve us well in the higher risk
environment we now face, offering some protection. If we see
further weakness, either due to a general heightening in risk-
aversion or the deterioration of corporate fundamentals, we will
be eager to assess oppor
tunities to add exposure to credit-worthy
bonds at attractive yields.
Rhys Davies Edward Craven
Portfolio Managers
31 March 2026
Q
A
Q
A
Q
A
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Invesco Bond Income Plus Limited is a Jersey
domiciled investment company which is listed
on the London Stock Exchange
The Company’s purpose is to generate returns over the long-term
for its shareholders by investing their pooled capital to achieve
the Company’s investment objective through the application of
its investment policy (set out below) and with the aim of spreading
investment risk.
The strategy the Board follows to achieve the objective is to set
investment policy and risk guidelines, together with investment
limits, and to monitor how they are applied.
The business model the Company has adopted to achieve its
objective is to contract investment management and
administration to appropriate external service providers, who are
subject to oversight by the Board. The principal service providers
are:
– Invesco Fund Managers Limited (the ‘Manager’) to manage
the portfolio in accordance with the Board’s strategy; and
– JTC Fund Solutions (Jersey) Limited (the ‘Company
Secretary’) to provide company secretarial, compliance and
general administration services.
In addition to the management and administrative functions of
the Manager and the Company Secretary, the Company has
contractual arrangements with Computershare Investor Services
(Jersey) Limited to act as registrar and the Bank of New York
Mellon (International) Limited (‘BNYMIL’) as depositary and
custodian.
The Board has oversight of the Company’s service providers, and
monitors them on a formal and regular basis. The Board has a
collegiate culture and pursues its fiduciary responsibilities with
independence, integrity and diligence, taking advice and outside
views as appropriate and constructively challenging and
interacting with service providers, including the Manager. The
portfolio managers responsible for the day-to-day management
of the portfolio are Rhys Davies, Portfolio Manager and Edward
Craven, Deputy Portfolio Manager, supported by the wider fixed
interest team.
The Company is an alternative in
vestment fund for the purposes
of the Alternative Investment Fund Managers Directive.
Investment Objective and Policy
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 Investment Objective.
This Investment Policy should be read in conjunction with the
descriptions of Investment Style, Investment Limits, Derivatives
and Currency Hedging, and Borrowings set out below.
Investment Style
The Manager seeks to ensure that the portfolio is diversified,
having regard to the nature and type of securities (including
duration, credit rating, performance and risk measures and
liquidity) and the geographic and industry sector composition of
the portfolio. The Company may hold both illiquid securities (for
example, securities where trading volumes are relatively low and
unlisted securities) and concentrated positions (for example,
where a high proportion of the Company’s total assets are
comprised of a relatively small number of investments).
Investment Limits
– the Company may invest in fixed-interest securities, including
but not restricted to preference shares, loan stocks
(convertible and redeemable), corporate bonds and
government stocks, up to 100% of total assets;
– investments in equities may be made up to an aggregate
limit of 20% of total assets;
– the aggregate value of holdings of shares and securities in a
single issuer or company, including a listed investment
company or trust, will not exceed 15% of the value of the
Company’s investments; and
– investments in unlisted investments will not exceed 10% of
the Company’s total assets for individual holdings and 25%
in aggregate.
All the above limits are measured at the time a new investment
is made.
Derivatives and Currency Hedging
The Company may enter into derivative transactions (including
options, futures, contracts for difference, credit derivatives and
interest rate swaps) f
or the purposes of efficient portfolio
management. The Company will not enter into derivative
transactions for speculativ
e purposes.
Efficient portfolio management may include reduction of risk,
reduction of cost and enhancement of capital or income through
transactions designed to hedge all or part of the portfolio, to
replicate or gain synthetic exposure to a particular investment
position where this can be done more effectively or efficiently
through the use of derivatives than through investment in
securities or to transfer risk or obtain protection from a particular
type of risk which might attach to portfolio investments.
The Company may hedge against exposure to changes in
currency rates to the full extent of any such exposure.
Borrowings
The Company’s borrowing policy is determined by the Board,
which has set a maximum of 30% of the Company’s total assets.
This limit may be varied from time to time in the light of prevailing
circumstances, but has not been changed since the Company’s
incorporation in its current form. The Manager has discretion to
Purpose, Business Model and Strategy
Business
Review
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 11
borrow within the limit set by the Board. Any borrowings are
covered by investments in matching currencies to manage
exposure to exchange rate fluctuations.
The Board has reviewed the methods of financing available to the
Company including repo financing whereby a company
participates in sale and repurchase arrangements in connection
with its portfolio. Under these arrangements, a company sells
fixed interest securities and is contractually obliged to repurchase
them at a fixed price on a fixed date, whilst retaining economic
exposure to the securities sold. The difference between the
(lower) sale price and the later purchase price is the cost
(effectively interest) of the repo financing. Our preferred method
of gearing remains the use of repurchase agreements and such
repo financing agreements are in place and may be used subject
to the aggregate 30% ceiling. At the year end, the sum borrowed
using this method was £38.0 million (2024: £45.1 million). This
represents gross gearing of 9.3% with cash and cash equivalents
including margin of 6.5% giving net gearing of 2.8% (2024: gross
gearing of 13.1% with cash and cash equivalents including margin
of 3.2% giving net gearing of 9.9%)
(1)
.
Key Performance Indicators
The Board reviews performance by reference to a number of Key
Performance Indicators which include the following:
• Performance
• Dividends
• Premium/Discount
• Ongoing Charges Ratio
Performance
As the Company’s objective is to seek to obtain capital growth
and high income, the performance is best measured in terms of
total return. There is no single index against which the Company’s
performance may be meaningfully assessed. T
herefore, the Board
refers to a variety of relevant data and this is reflected in both
the Chairman’s Statement and the Portfolio Managers’ Report on
pages 6 to 10. The Manager has a long-term horizon and
consequently the Board pays close attention to returns over three
and five years in its assessment o
f investment performance. As
explained in the Chairman’s Statement, the Board has noted the
performance in the year and is satisfied with the longer term
performance of the portfolio.
Ten Year Total Return Graph
All figures rebased to 100 at 31 December 2015.
Source: LSEG Data & Analytics.
Dividends and Dividend Payment Policy
Dividends form a key component of the total return to
shareholders and the Company has adopted a dividend policy to
target an annualised dividend of
12.25p per share for 2026. In
the year under review all 4 interim dividends paid to shareholders
were 3.0625p totalling 12.25p. Dividends paid over the last
ten years are shown in the table on page 4.
The Board’s Dividend Payment Policy is to pay dividends on a
quarterly basis in May, August, November and February in
respect of each accounting year. The timing of these regular
three-monthly payments means that shareholders do not have
an opportunity to vote on a final dividend. Recognising the
importance of shareholder engagement, and although not
required by any regulation, shareholders are given an opportunity
to vote on this policy at the forthcoming AGM.
Premium/Discount
The Board monitors the price of the Company’s shares in relation
to their net asset value and the premium/discount at which the
shares trade. Powers are taken each year to issue and buy back
shares, which can assist short term management, however the
level of discount or premium is mostly a function of investor
sentiment and demand for the shares, over which the Board may
have limited influence. The ideal would be for the shares to trade
close to their net asset value. The following graph shows the
premium/discount through the year. The Company’s shares
traded at a premium for the majority of the year, with the shares
only trading at a discount during certain very limited periods of
time due to market factors, but ended the year at a premium
of 1.2%.
Source: LSEG Data & Analytics.
Ongoing Charges Ratio
The expenses of managing the Company are carefully monitored
by the Board. The standard measure of these is the ongoing
charges ratio (OCR), which is calculated by dividing the sum of such
expenses over the course of the year, including those charged to
capital, by the average net asset value. This ongoing charges ratio
provides a guide to the effect on performance of annual operating
costs. The Company’s ongoing charges ratio for the current year
was 0.88%, compared to 0.89% for the previous year. Your Board
continues to believe that costs remain competitive compared to
those of similar products.
Investment Process
At the core of the portfolio managers’ philosophy is a belief in active
investment management. They seek to invest where they see the
potential for attractive returns and to avoid risks that they do not
think are well rewarded. Fundamental principles drive a genuinely
active investment approach, with a strong emphasis on value.
The investment process comprises four key elements to deliver
the information the portfolio managers use to make their
decisions:
• top down, macroeconomic analysis – examining the factors
that shape the economy;
• credit analysis using internal and external research with a
view to maximising returns from acceptable and understood
credit risk exposure;
• value assessment, considering the risk/return profile of any
bond in relation to cash, core government bonds and the rest
of the fixed interest universe; and
75
100
125
150
175
200
Dec-25
Dec-24
Dec-23
Dec-22
Dec-21
Dec-20
Dec-19
Dec-18
Dec-17
Dec-16
Dec-15
Share Price
Net Asset Value
Premium/(Discount) %
–1
0
1
2
3
4
Dec-25Sep-25Jun-25Mar-25Dec-24
(1) Alternative Performance Measure (APM). See Glossary of Terms and Alternative Performance Measures on pages 78 to 81 of the financial report for details
of the explanation and reconciliations of APMs.
12
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 12
13
• risk considerations, analysing all holdings to allow for a
comprehensive understanding of risks involved to ensure
diversification of the portfolio.
The portfolio managers enter into the majority of positions with
a view to holding them until their call or maturity date and their
investment process is based on making investments where the
yield to maturity or call appears to them to be at least an
adequate reward for the risk. The nature of the high yield market
and the Company’s mandate mean that there will be occasions
when the value the portfolio managers assessed in an in
vestment
is fully realised by the market. On these occasions, they may exit
the position before maturity.
The portfolio managers believe that it is good investment practice
to try and keep the level of turnover low, whilst at the same time
recognising that this should not at any time act as a deterrent to
effective portfolio management. Turnover will generally be very
low due to the long term nature of many of the holdings, and
given the closed end nature of the Company, the portfolio
managers are not presented with regular daily inflows and
outflows which require managing.
The portfolio managers also consider environmental, social and
governance (‘ESG’) factors details of which are given on pages 17
to 20.
Internal Control and Risk Management
The Directors have overall responsibility for the Company’s system
of internal controls and are responsible for reviewing the
effectiveness of these controls. This includes safeguarding of the
Company’s assets. The Directors have carried out a robust
assessment o
f the principal and emerging risks facing the
Company, including those that would threaten its business model,
future performance, solvency and liquidity.
The Audit & Risk Committee (the ‘Committee’), on behalf of the
Board, has established an ongoing process for identifying and
assessing the risk
s to which the Company is exposed by reference
to a risk control summary, which maps the risks, mitigating
controls in place, and monitoring and reporting of relevant
information to it. The review of the risk control summary also
incorporated a robust assessment o
f new and emerging risks for
monitoring purposes.
As part of the process, the Committee has identified five risk
categories: strategic; investment management; third party service
providers; regulation and corporate governance; and operational.
An explanation of these categories follows.
Strategic Risk
The Board sets the Company’s strategy, including setting
its objective and how this should be achieved. The Board
assesses the perf
ormance of the Company in the context
of the market and macro conditions and gives direction to,
and monitors, the Manager’s actions, and those of other
third parties, on behalf of the Company.
Investment Management Risk
Investment management covers management of the
portfolio together with cash management, gearing and
hedging, all being areas the portfolio managers can control,
and which generate the Company’s investment performance.
Third Party Service Providers Risk
The Company has no employees and its Directors are
appointed on a non-executive basis. The Company is reliant
on Third Party Service Providers (‘TPPs’) for its executive
functions. The Company’s most significant TPPs are the
Manager, to which portfolio management is delegated as
well as certain administrative services including accounting
and marketing and the Company Secretary. Other
significant TPPs are the depositary, custodian, registrar,
external auditor and corporate broker.
Regulation and Corporate Governance Risk
The Company is required to comply with many regulations.
For the year under review these included but were not
limited to, the provisions of the Companies (Jersey) Law
1991, the UK Listing Rules, the Alternative Investment Fund
Managers Directive, the Market Abuse Regulation, the FCA’s
Disclosure Guidance and Transparency Rules, the
UK Corporate Governance Code, the AIC Corporate
Governance Code and Statement of Recommended Practice
and International Financial Reporting Standards (‘IFRS’)
Accounting Standards as adopted by the European Union.
Operational Risk
Operational risk covers the day to day operational matters
mainly at the Manager, but also at other TPPs.
A matrix of the risks, set out ac
cording to their assessed risk
levels after mitigation, enables the Directors to concentrate on
those risks that are most significant, and also forms the basis of
the list of principal risks and uncertainties on pages 14 and 15.
The ratings take into account the Board’s risk appetite and the
ongoing monitoring by the Manager.
Oversight of the control environment is based on the Company’s
relationship with its TPPs, all of which have clearly defined lines of
responsibility, delegated authority, and control procedures and
systems. The Company’s main TPPs, the Manager, Fund Accounting
and the Company Secretary, all have, a ‘Three Lines of Defence
Model’, which is embedded into their risk management systems.
The effectiveness of the Company’s internal control and risk
management system is reviewed at least twice a year by the
Committee. The Committee received and considered, together
with representatives of the Manager, reports in relation to
operations and systems of internal controls of the Manager,
Company Secretary, accounting administrator, custodian and
registrar. The Committee also receives regular reports from the
Company Secretary’s compliance officer and the Manager’s
internal audit and compliance departments. The Committee also
received a comprehensive and satisfactory report from the
depositary at the year end Committee meeting. The Company’s
risk management policies and procedures for financial
instruments are set out in note 19 on pages 63 to 70.
Due diligence is undertaken before any contracts are entered into
with any third party service provider. The Manager regularly
reviews, against agreed service standards, the performance of
TPPs through formal and informal meetings, and by reference to
third party independently audited control reports. The results of
the Manager’s reviews are reported to and reviewed by the
Committee. These various reports and reviews did not identify
any significant failings or w
eaknesses which were relevant to the
Company during the year and up to the date of this Annual
Financial Report. If any had been identified, the required remedial
action would have been taken.
Reporting to the Board at each board meeting comprises, but is
not limited to: financial reports, including any hedging and
gearing; performance against relevant indices and the Company’s
peers; the portfolio managers’ review, including of the market,
the portfolio, transactions and prospects; revenue forecasts; and
investment monitoring against investment guidelines. The
portfolio managers are permitted discretion within these
investment guidelines, which are set by the Board. Compliance
with the guidelines is monitored daily by the Manager. Any
proposed variation to these guidelines is referred to the Board for
consideration and approval.
The Board, through the Management Engagement Committee,
formally reviews the performance of the Manager, the Company
Secretary and the other key TPPs annually. The Board has
reviewed and accepted both the Manager’s and Company
Secretary’s whistleblowing policy under which staff of both
Invesco Fund Managers Limited (‘the Manager’) and JTC Fund
Solutions (Jersey) Limited (‘the Company Secretary’) can, in
confidence, raise concerns about possible improprieties or
irregularities in matters affecting the Company.
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 13
Principal 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, but
may have the potential to be in the future. In carrying out this assessment, the Boar
d considered the emerging risks facing the
Company including geopolitical risks and uncertainties such as the ongoing conflicts in Ukraine and the Middle East, uncertain
economic outlook, especially in Europe, USA & the UK as a result of geo-political tensions, evolving cyber threats (including
risks associated with Artificial Intelligence) and ESG, including climate risk. The principal risks that follow are those identified
by the Board as the most significant after consideration of mitigating factors and not intended to cover all the risk categories
as shown in the Internal Control and Risk Management section on page 13.
Category and Principal Risk Description Mitigating Procedures and Ongoing Controls
Strategic Risk
An explanation of market risk and how this is addressed is
given in note 19.1 to the financial statements. The Portfolio
Managers’ Report summarises particular macro economic
factors affecting performance during the year and the portfolio
managers’ views on those most relevant to the outlook for the
portfolio.
The Directors continue to monitor developments closely during
this period of heightened uncertainty and are actively
assessing an
y potential implications for the Company.
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.
Since the end of the accounting year, conflict in the Middle
East has significantly escalated with the US and Israel
launching coordinated strikes against Iran.This escalation has
contributed to increased market volatility and disruptions to
global energy supply routes.
Market risk also arises from movements in foreign currency
exchange rates and interest rates.
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. In 2024, Jersey 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%99sStr
engthInCombattingFinancialCrimeIsRecognised.aspx
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 both the Manager and
the Company’s corporate 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 seeks
authority 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.
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.
14
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 14
15
Category and Principal Risk Description Mitigating Procedures and Ongoing Controls
Third Party Service Providers Risk
Business Continuity Risk
Impact of a major event, such as Covid-19, 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 c
ontinuity 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.
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.
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.
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 13.
Unsatisfactory Performance by 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 abilit
y 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.
Viability Statement
This Company is an investment company whose business consists
of investing the pooled funds of its shareholders to provide them
with capital growth and a high income over the long term,
predominantly from a portfolio of high yielding fixed income
securities. Long term for this purpose is considered to be at least
five years and the Directors hav
e assessed the Company’s viability
over that period. However, the life of the Company is not intended
to be limited to that or any other period.
The main risks to the Company’s continuation is a significant fall
in markets or a prolonged period of decline due to political
uncertainty or other macro factors outside the Company’s control.
This could lead to shareholder dissatisfaction through failure to
meet the Company’s investment objective, through poor
investment performance or the investment policy not being
appropriate in prevailing market conditions, any of which could
affect the demand for and liquidity of the Company’s shares.
Accordingly, market and political/fiscal risks, are deemed by the
Board to be the key principal risks of the Company and are given
particular consideration in the continuing assessment o
f its long
term viability.
The Company’s investment objective and policy are kept under
review. The continued relevance of the investment objective and
policy are underlined by the Company’s annual continuation vote.
Last year over 99% of the votes registered were in favour of
continuation and the Board has no reason to believe that the
continuation resolution will not be passed at the forthcoming and
subsequent AGMs.
Performance derives from returns for risk taken. The Portfolio
Managers’ Report on pages 9 and 10 sets out the current
investment strategy of the portfolio managers. Whilst there has
been an increase in the credit quality of the portfolio during the
year, it remains the case that the portfolio continues to contain a
high level of relatively high-yielding non-investment grade bonds
and these carry a higher risk of default than investment grade
paper. This is discussed further in note 19 to the financial
statements. The Board has adopted investment limits within
which the portfolio managers operate. The Directors and the
portfolio managers constantly monitor the portfolio, its ratings
and default risk. A bond rating analysis of the portfolio at the year
end is shown on page 23. Exposure is weighted towards higher
quality issuers where the risk of default is considered to be more
remote.
Performance has been strong for many years through different,
and difficult, market cycles – as shown by the ten year total return
performance graph on page 12. The investment policy has been
stress tested by market events in recent times by both global and
domestic events such as the pandemic and the conflicts in
Ukraine and the Middle East. These events affected performance,
but at no time in the past did they threaten the viability of the
Company. Whilst past performance may not be indicative of
performance in the future, the investment policy has been
consistent throughout those past periods.
Performance and demand for the Company’s shares are not things
that can be forecast. Indeed, whilst recent geopolitical and
macroeconomic events may impact the Company, there are no
current indications that performance or demand for the
Company’s shares may be permanently affected by such events
over the next five years so as to affect the Company’s viability.
The Company is permitted to borrow up to a maximum of 30% of
the Company’s total assets and currently has no long-term debt
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 15
obligations. Current borrowing is in the form of repo financing
spread over a number of good quality counterparties whose
credit-standing is reviewed periodically by the Manager. There is
a maximum limit allowed with any one counterparty, and the repo
entered into must have a maturity tenor of three months or less.
Debt levels have been stress tested with more than adequate debt
cover in place.
As described in note 19.2 to the financial statements on pages 67
to 68 liquidity risk is not viewed by the Directors as a significant
risk. The majority of the Company’s assets are readily realisable
and amount to many times the value of its short term liabilities
and annual operating costs.
Based on the above analysis, the Directors confirm that they have
a reasonable expectation that the Company will be able to
continue in operation and meet its liabilities as they fall due over
the five year period of their assessment and the D
irectors
consider that the Company’s investment strategy will continue to
serve shareholders well over the longer term.
Investment Management
As noted earlier, the Manager provides investment management
and certain administrative services to the Company. The
agreement is terminable by either party giving no less than
three months’ prior written notice and subject to earlier termination
without compensation in the event of a material breach of the
agreement or the insolvency of either party. The management fee
is payable quarterly in arrears and is equal to 0.1625% of the value
of the Company’s total assets under management less current
liabilities at the end of the relevant quarter. In addition, the
Manager was paid a fee of £103,000 during the year for
marketing services (2024: £103,000).
The portfolio managers responsible for the day-to-day
management of the portfolio are Rhys Davies, Portfolio Manager
and Edward Craven, Deputy Portfolio Manager.
The Manager’s Responsibilities
The Directors have delegated to the Manager the responsibility
for the investment management activities of the Company, for
seeking and evaluating investment opportunities and for
analysing the accounts of investee companies. The Manager has
full discretion to manage the assets of the Company in
accordance with the Company’s stated objectives and policies as
determined from time to time by the Board and approved by
shareholders. Within the guidelines specified by the Board, the
Manager has discretion to make purchases and sales, make and
withdraw cash deposits, enter into underwriting commitments
and exercise all rights over the investment portfolio. The Manager
also advises on currency exposures and borrowings.
Assessment of the Manager
The performance of the Manager is reviewed continuously by the
Board and the ongoing requirements of the Company and
services received ar
e assessed annually with reference to key
performance indicators as set out on page 12.
The Management Engagement Committee is responsible for
reviewing the Manager. Based on its recent review of activities,
the Board believes that the continuing appointment of Invesco
Fund Managers Limited remains in the best interests of the
Company and its shareholders.
Financial Position
The Company’s balance sheet on page 54 shows the assets and
liabilities at the year end. The Company has repo financing
agreements in place, with an amount of £38.0 million (2024:
£45.1 million) borrowed at year end, representing gross gearing
of 9.3% (2024: 13.1%) and net gearing of 2.8% (2024: 9.9%),
after taking cash and cash equivalents including margin into
account, as at 31 December 2025.
Performance and Future Development
The performance and future development of the Company
depend on the success of the Company’s investment strategy.
A review of the Company’s performance, market background,
investment activity and strategy during the year, together with
the investment outlook are provided in the Chairman’s Statement
and Portfolio Managers’ Report on pages 6 to 10.
Annual Continuation Vote
The Articles of Association of the Company require that unless
an ordinary resolution is passed at or before the Annual General
Meeting (‘AGM’) each year releasing the Directors from the
obligation to do so, the Directors shall convene a general meeting
within six months of the AGM at which a special resolution would
be proposed to wind up the Company. Having reviewed the
performance of the Company, the Directors have no reason to
believe that a resolution to release them from that obligation will
not be passed at the AGM to be held later in the year. Further
details can be found in note 2 (a) (ii) on page 56.
Substantial Holdings in the Company
The Company has been notified of the following holdings of 3% and over of the Company’s ordinary share capital carrying unrestricted
voting rights:
As at As at As at
28 February 2026 31 December 2025 31 December 2024
Fund Manager/Registered Holder Holding % Holding % Holding %
Hargreaves Lansdown, stockbrokers (EO) 49,293,992 19.19 44,928,699 18.96 38,088,524 18.83
Interactive Investor (EO) 36,794,502 14.33 34,140,629 14.41 25,386,222 12.55
AJ Bell, stockbrokers (EO) 24,666,816 9.60 20,817,911 8.79 14,946,175 7.39
Invesco* 17,540,155 6.83 17,540,155 7.40 17,540,155 8.67
Redmayne Bentley, stockbrokers 15,540,868 6.05 14,683,425 6.20 10,622,010 5.25
Charles Stanley 10,891,138 4.24 10,515,903 4.44 10,063,995 4.98
HSDL, stockbrokers (EO) 8,803,620 3.43 8,325,810 3.51 6,976,268 3.45
EO: Execution only.
* Held across a number of Invesco Funds. Invesco is not considered a related party. For further information see Related Party Transactions and T
ransactions with
Manager note 23 on page 72
.
16
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 16
17
Board’s Duty to Promote the Success of
the Company
The Directors have a fiduciary duty to act, in good faith, for the
benefit of shareholders taken as a whole. In the UK, section 172
of the Companies Act 2006 seeks to codify this duty and to widen
the responsibility to incorporate the consideration of wider
relationships that are necessary for the Company’s sustainability.
Although the Company is not incorporated in the UK, its ordinary
shares are listed on the London Stock Exchange, hence the Board
deems it appropriate for the Company to report against this UK
statutory duty, being that the Directors have a duty to promote
the success of the Company, whilst also having regard to certain
broader matters, including the need to engage with employees,
service providers, customers and others, and to have regard to
their interests. This is reflected in the summary of the Board’s
responsibilities on pages 38 and 39.
In fulfilling these duties, and in accordance with the Company’s
nature as an investment company with no employees and no
customers in the traditional sense, the Board’s principal concern
has been, and continues to be, the interests of the Company’s
shareholders taken as a whole. Notwithstanding this, the Board
has a responsible governance culture and also has due regard for
broader matters so far as they apply. In particular, the Board
engages with the Manager and Company Secretary at every
Board meeting and the Management Engagement Committee
also reviews the Company’s relationships with these and other
service providers, such as the registrar, corporate broker,
depositary and custodian, at least annually. The assessment o
f
the Manager consequent to these reviews is set out above.
The Company formally communicates with its shareholders at
least three times a year providing information about shareholder
meetings, dividend payments and half-yearly and annual financial
results. As set out on page 34, the Company uses a number of
methods to engage with its shareholders via regular
communications such as the monthly factsheet and through
investor events and other media channels.The annual general
meeting of the Company provides shareholders with the
opportunity to attend and meet with the Directors and the
Manager. The Company’s AGM will be held on 17 June 2026 at
9.30am at the offices of JTC Fund Solutions (Jersey) Limited.
Shareholders are welcome to attend the AGM in person.
Shareholders who cannot attend in person are encouraged to
submit their votes by proxy.
Board Diversity
The Company’s policy on diversity is set out on page 39, under
the section ‘Nomination and Remuneration Committee’. The
Board considers diversity, including the balance of skills,
knowledge, experience, gender and ethnicity amongst other
factors when reviewing its composition and appointing new
directors. The Board continues to recognise the importance of
having a range of skilled, experienced individuals with the right
knowledge represented on the Board in order to allow it to fulfil
its obligations.
In view of its relatively small size, the Board will continue to
ensure that all appointments are made on the basis of merit
against the specification prepared for each appointment. In doing
so, the Board will seek to meet the targets set out in the FCA’s
UK Listing Rule 6.6.6R (9)(a), which are summarised below. In
accordance with UK Listing Rule 6.6.6R (9), (10) and (11) the
Board has provided the following information in relation to its
diversity as at 31 December 2025, being the financial year-end
of the Company. The information included in the tables below has
been obtained following confirmation from the individual
Directors.
Board Gender as at 31 December 2025
Number of Number of Number in Percentage of
Board Percentage of senior positions executive executive
members the Board on the Board management
A
management
A
Men 2 40% 1 n/a n/a
Women 3 60%
B
1
C,D
n/a n/a
A the Company does not disclose the number of directors in executive management as this is not applicable for an investment trust.
B meets the target of 40% as set out in UKLR 6.6.6R (9)(a)(i).
C the positions of Senior Independent Director and Chair of the Audit & Risk Committee are held by the same woman (Heather MacCallum). T
he latter position is
not currently defined as a senior position under LR 9.8.6R (9)(a)(ii).
D meets the target of 1 as set out in UKLR 6.6.6R (9)(a)(ii).
Board Ethnic Background as at 31 December 2025
Number of Number of Number in Percentage of
Board Percentage of senior positions executive executive
members the Board on the Board management
A
management
A
White British or other White
(including minority-white groups) 4 80% 2 n/a n/a
Minority ethnic 1
B
20% 0 n/a n/a
A the Company does not disclose the number of directors in executive management as this is not applicable for an investment trust.
B meets the target of 1 as set out in UKLR 6.6.6R (9)(a)(iii).
There have been no changes since the year end that have affected the Company’s ability to meet the targets set in UKLR 6.6.6R (9)(a).
Modern Slavery Act 2015
The Company is an investment vehicle and does not provide
goods or services in the normal course of business, or have
customers. Accordingly, the Directors consider that the Company
is not required to make any slavery or human trafficking
statement under the Modern Slavery Act 2015.
Sustainability-relatedMatters
In relation to the portfolio, the Company has delegated the
management of the Company’s investments to the Manager. The
Manager’s approach to investment stewardship and to the use of
sustainability-related information is outlined in its UK Stewardship
Code Report, which sets out a number of principles that are
intended to be considered in the context of its responsibility to
manage investments in the financial interests of shareholders.
A greenhouse gas emissions statement is included in the
Directors’ Report on page 34.
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 17
The Manager forms part of the Invesco Ltd group, which is a
signatory to, the United Nations Principles for Responsible Investment
(‘PRI’), Invesco scored four stars for its Investment & Stewardship
Policy in its most r
ecent PRI assessment. In addition, Invesco is an
active member of the UK Sustainable Investment and Finance
Association as well as a supporter of the Task Force on Climate-related
Financial Disclosure (‘TCFD’) since 2019 and Invesco’s latest iteration
of its Global TCFD Report is available at
https://www.invesco.com/content/dam/invesco/emea/en/pdf/ivz_
global-tcfd-report.pdf.
The Manager’s investment team may take sustainability-related
information (including selected environmental, social and
governance data) into account as one input among many when
evaluating investments, where relevant to the investment thesis
and the Company’s objectives. Third-party data and ratings may
inform analysis but do not determine investment decisions.
Investment professionals are supported by the Manager’s
investment stewardship function, which provides research and
engagement support.
Regarding stewardship, the Board considers that the Company
has a responsibility as an investor towards ensuring that
appropriate standards of corporate governance are maintained in
the companies in which it invests. To achieve this, the Board does
not seek to intervene in daily management decisions, but aims to
support high standards of governance and, where necessary, will
take the initiative to ensure those standards are met.
The Company’s stewardship functions have been delegated to the
Manager. The Manager has adopted a clear and considered policy
towards its responsibility as an investor on behalf of the Company.
As part of this policy, the Manager takes steps to satisfy itself
about the extent to which the companies in which it invests look
after shareholders’ value and comply with local recommendations
and practices, such as the UK Corporate Governance Code. The
Manager is also a signatory of the Financial Reporting Council’s
Stewardship Code, which seeks to improve the quality of
engagement between institutional investors and companies to
help improve long-term returns to shareholders and the efficient
exercise of governance responsibilities.
A copy of the current Manager’s UK Stewardship Code Report can
be found at
https://www.invesco.com/content/dam/invesco/emea/en/pdf/2024
-uk-stewardship-code-report.pdf
How the investment team incorporates
sustainable investing in its process
The Invesco Fixed Income team (‘IFI’), of which the portfolio
managers are a part, has managed ESG-aware portfolios for more
than two decades and their approach has consistently evolved.
Exclusion based screening once dominated the ESG landscape,
but has since been augmented by positive selection-based criteria
for holdings as well as embedding decarbonisation objectives.
This reflects how industry dynamics have changed and how the
appetite for more sophisticated and targeted sustainability-linked
outcomes has grown among clients.
IFI believes that evaluating ESG criteria leads to better long-term
risk-adjusted returns. With this in mind, IFI looks for a combination
of materiality, momentum, and engagement.
Materiality means being clear about the ESG considerations that
have the potential to most impact an issuer’s ability to meet its
debt obligations. IFI integrate these ESG considerations into their
fundamental resear
ch processes by providing an independent
assessment o
f each investment, complementing third-party ESG
ratings and expanding the investable universe to include issuers
that lack external coverage. IFI maintain global standards for
research and investment decision-making, allowing ESG
considerations to be applied across asset classes wher
e
appropriate and enhancing comparability across multi-sector fixed
income portfolios.
Momentum means using expert analysis to determine which
issuers are outpacing their peers in terms of making progress on
ESG considerations. IFI believes that a link may exist between
positive momentum in ESG characteristics and improving
creditworthiness, which is potentially advantageous for fixed
income prices and investment returns.
Engagement means encouraging momentum by working with
Invesco’s Sustainable Investing Services team and other experts
to engage with issuers to provide our views on matters such as
strategy, transparency, capital allocation and ESG concerns. IFI
view active ownership as a vital element of our fiduciary
responsibilities to clients.
The fixed income landscape is br
oad and varied. It encompasses
government securities issued by c
ountries, securitised debt, loans
undertaken by private companies, and many other forms of asset.
Geographical, structural, and regulatory differences mean that
data availability, ESG factors, and management engagement
levels are highly diverse.
As a result, while the underlying approach taken by IFI to ESG is
consistent, the path t
o arriving at an ESG-based assessment differs
to account for the constraints and challenges posed by a particular
asset class. It is important to highlight that integration is an ongoing
strategic effort and these approaches will continue to evolve.
ESG overview
Although ESG integration forms part of the investment process,
the Company is not managed to sustainable ESG objectives,
constraints or outcomes.
The portfolio managers’ approach is centred on macroeconomic
and corporate credit research and focuses on fundamental
valuation to support the active management of portfolios. The
Manager has always incorporated ESG analysis into its investment
research because it believes that non-financial risks can have a
material impact on credit risk and by identifying those risks, it can
improve its credit risk assessment and pr
oduce better
risk-adjusted returns in portfolios.
The core objective of the Manager’s E
SG approach is to assess
issuers’ performance across environmental, social and
governance factors and to determine where those risks are
potentially material or mispriced.
The fixed income universe is broad and varied. Geographical,
structural and regulatory differences mean that data availability,
ESG awareness and management engagement levels can vary
greatly. As a result, while the investment team’s commitment to
ESG risk assessment is c
onstant, the path to arriving at an
ESG-based assessment necessarily dif
fers to account for the
constraints and challenges of different circumstances.
Common Principles for ESG Research
The Invesco team’s approach to ESG is based on a belief that
incorporating material environmental, social and governance risks
into a broader risk assessment, leads t
o better long-term
risk
-adjusted returns. In order to do this, the team considers
materiality and momentum.
ESG analysis for corporate bonds
IFI’s credit analysts are tasked with understanding the ESG drivers
for the companies they cover and conducting ESG-based analysis
along with their fundamental financial analysis. This applies across
corporate credit research teams in North America, Europe, and Asia.
IFI’s corporate research follows the same set of standards globally,
encompassing investment grade and high yield issuers, whether
an issuer is based in a developed or an emerging market country.
This approach is also applied to short-dated securities held in IFI-
managed global liquidity products. Analysts are primarily focused
on identifying risk factors that could be financially material, and
these may be common to all industry participants or unique to a
specific issuer.
18
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19
The starting point for ESG assessment is at the industry level.
Global sector teams set out common ESG risk factors for each
industry, and individual analysts work within this framework on
each issuer in their coverage area, while also seeking to identify
idiosyncratic ESG risks to which individual issuers might be exposed.
IFI also use third-party research and data to provide broad market
context and transparency. These external sources supplement our
proprietary research and assist analysts in identifying areas or
issues of interest where engagement with company management
is warranted. We engage directly with companies to better
understand their positions and their future intentions. IFI and
industry participants’ increased focus and engagement on ESG
factors has resulted in material improvements in ESG-related
issuer reporting and heightened management focus on
governance practices.
IFI has developed its own ESG methodology and grading system
to provide clear and consistent outputs for portfolio managers.
Each issuer receives a proprietary overall ESG grade,
accompanied by sub-grades covering the three pillars of E, S and
G. In addition, ESG momentum is captured through trend
assessments, which add fur
ther useful information for portfolio
managers in the same way that creditworthiness trend
assessments do f
or fundamental credit ratings. All ESG research
is stored on the Manager’s research platform so that portfolio
managers across asset classes ma
y easily access it.
IFI is committed to continuous innovation and improvement in its
ESG corporate research process. For example, with the increased
issuance of green bonds and growing client interest, we have
recently developed specialised templates to aid in analysing such
bonds.
Within the investment team, ESG views are formed by credit
analysts and feed into their fundamental investment
recommendations. Analysts work with their colleagues at a sector
level across our global platform to identify key ESG metrics per
sector to consider when analysing individual companies. This all
forms part of the toolkit which portfolio managers have at their
disposal when constructing portfolios.
IFI believes that evaluating ESG criteria leads to better long-term
risk adjusted returns. IFI follows an investment approach that
integrates ESG into the fundamental research carried out by
Invesco’s credit research analysts. Integrating ESG criteria into
research provides an independent assessment o
f each
investment’s suitability for responsible investment strategies to
complement ratings from third party providers or indeed, expand
the investable universe for issuers not yet covered by external
providers.
External ESG resources
Invesco has a range of third-party research and data available as
an input to support the analysts in their E
SG risk assessment.
Examples:
• MSCI ESG Scores, industry percentiles and weights
• CDP carbon and scoring data
• Sustainalytics Risk scores and category summary data
• Global Compact compliance or violation fields (MSCI and
Sustainalytics)
• ISS Climate Solutions – Scope 1 to 3 emissions and science-
based emission targets
• Controversies – MSCI & Sustainalytics data feeds
Invesco’s Stewardship resources
Invesco’s Global Sustainable Investing Services team has
resources in research, portfolio analytics and management
engagement.
Furthermore, Invesco’s own proprietary developed tool –
ESGCentral – brings together multiple external and internal
datasets and maps them to portfolios and benchmarks to provide
portfolio and issuer-level sustainability analytics and screening
capabilities for strategies and clients that request such analysis.
Availability varies by dataset, license, and mandate.
In addition to portfolio views, ESGCentral can surface issuer-level
analytics linked to portfolio holdings (and, where relevant,
benchmark constituents). These issuer views provide snapshots
of selected indicators, disclosures, and controversies (with source
and date), peer comparisons and point-in-time vs historical
perspectives. Issuer-level analytics are analytical reference views
to support research and stewardship workflows; they do not
impose firmwide criteria or generate compliance determinations.
While disclosure levels vary greatly by the issuer due to sector,
size and regional factors, these data analytics can provide
a comprehensive picture of each issuer’s performance.
The importance of fundamental ESG
analysis
At the issuer level, data availability, disclosure rules and
management engagement levels can vary across each global
sector. Raw ESG data can sometimes present a partial or even
misleading picture. When placed alongside the fact that issuers
themselves have unique features in terms of business models, the
weighting of ESG factors in each issuer assessment must be
interpreted and understood in a broader context.
In our research process, the qualitative judgement of the credit
analyst is therefore central to determining whether an ESG factor
is evolving in a manner that may compromise an issuer’s financial
indicators and ultimately, its creditworthiness.
ESG in credit selection
Once a credit analyst has undertaken their credit assessment,
including that of the materiality and momentum of ESG risks, then
credit research is presented to portfolio managers.
The portfolio managers need to assess the t
ype and materiality
of any ESG risk and set that against the potential investment
return in the context of the Company’s objectives.
Other than the exclusions related to certain types of munitions,
there are no pre-determined rules on how securities are selected
in light of any ESG risks. Each investment case is likely to have its
own unique set of risks. The investment team’s credit selection
emphasises fund manager judgement and each case is considered
on its own merits.
Engagement with issuers
Invesco engages directly with companies to better understand
their positions and their future intentions and lobby for change
where Invesco believe it is necessary. Although engagement as
pure debt investors can be challenging, Invesco’s ownership of
both equity and debt can often be used to increase our voice as
a stakeholder. Engagement is carried out on a case by case basis
by relevant analysts and strategically with co-ordination through
Invesco’s Sustainable Investing Services Team.
Invesco’s Sustainable Investing Services Team is led by the Global
Head of ESG. Reporting to the Global Head of ESG is the Director
of ESG Research, who leads the ESG analyst team who in turn
focus on ESG company engagement activity. Invesco has
established a global process to ensure that its ESG-targeted
engagements are a collaboration between its Sustainable
Investing Services Team and the investment teams across Invesco
who may have interest in the issuer:
i. Internal assessment and c
oordination: the Sustainable Investing
Services Team consults with the investment teams and reviews
the ESG Engagement focus list and decides whether to: (a) gather
feedback on a topic and provide that feedback to an issuer; (b)
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 19
20
schedule a call with the issuer if it is deemed to be necessary; or
(c) engage directly with the issuer and serve as a liaison. Invesco’s
Sustainable Investing Services Team will arrange contact between
the relevant investment teams and issuers when and if it is
deemed necessary. Any ESG engagement meeting is added to a
centralised calendar that investment teams can access.
ii. Research and follow up: the Sustainable Investing Services
Research team conducts in-depth ESG research in preparation for
these meetings and discusses with the r
elevant investment teams
across Invesco to ensure that companies are questioned on the
key ESG topics. The Sustainable Investing Services Team produces
an Engagement Report for these meetings which is shared via
the Bloomberg platform for all relevant investment teams to
access. Invesco is also a member of several organisations that
facilitate collective dialogue with companies and continues to
assess other c
ollective engagements that we would like to work
more closely with in the future.
ESG portfolio reviews
Dedicated ESG-focused portfolio reviews are in place to
complement the existing risk-return portfolio review process.
Invesco’s Global Sustainable Investing Services team leads each
review meeting which is attended by fund managers and credit
research analysts. Portfolios are reviewed on the basis of a wide
range of ESG metrics on an absolute basis and also relative to
benchmarks where appropriate.
ESG portfolio monitoring includes measurement, based on
Sustainalytics ESG research data, of total portfolio ESG risk and
identification of holdings with the highest and lowest ESG risk. As
of the end of 2025, holdings with the highest ESG risk were
concentrated in the energy sector. The holdings with the lowest
ESG risk were spread across several sectors.
Invesco also carry out Carbon Footprint Analysis of the portfolio,
in absolute terms and compared to the wider high yield market,
using data from ISS Climate Solutions.
Task Force on Climate-related Financial
Disclosures (‘TCFD’)
Whilst TCFD is currently not applicable to the Company,
the Manager has produced a product level report on the
Company in accordance with the Financial Conduct Authority’s
(‘FCA’) rules and guidance regarding the disclosure of
climate-related financial information consistent with TCFD
Recommendations and Recommended Disclosures. These
disclosures are intended to help meet the information needs of
market participants, including institutional clients and consumers
of financial products, in relation to the climate-related impact and
risks of the Manager’s TCFD in-scope business. The product level
report on the Company is available on the Managers’ website at
www.invesco.co.uk/bips. Key elements of the product level report
include a scenario analysis of how climate change is likely to
impact the portfolio valuation under net zero 2050, delayed
transition and hothouse scenarios, and a discussion of the most
significant drivers of performance under those scenarios.
Invesco’s Group Level Task Force on Climate-Related Financial
Disclosures (‘TCFD’) is available on the Managers’ Website at
https://www.invesco.com/content/dam/invesco/emea/en/pdf/ivz_
global-tcfd-report.pdf.
In addition the Managers’ Entity Level TCFD Report is available at
https://www.invesco.com/content/dam/invesco/emea/en/pdf/IFML
_and_IAML_tcfd-entity-level_report.pdf.
The reports noted above are in the process of being updated for
the period to 31 December 2025 and will be made available via
the respective websites by 30 June 2026.
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21
At 31 December 2025
United North Other
Kingdom America Europe locations Total
% % % %
Fixed interest securities
(1)
33.8 5.9 43.4 0.1 83.2
Convertibles 12.8 – 2.8 – 15.6
Preference 1.2 0.4 – – 1.6
Equities – – 0.2 – 0.2
Credit Default Swaps – – (0.6) – (0.6)
Total 47.8 6.3 45.8 0.1 100.0
At 31 December 2024
United North Other
Kingdom America Europe locations Total
% % % % %
Fixed interest securities
(1)
34.1 7.1 39.0 – 80.2
Convertibles 14.4 – 2.8 – 17.2
Preference 1.7 0.4 – – 2.1
Equities – – 0.8 – 0.8
Credit Default Swaps – – (0.3) – (0.3)
Total 50.2 7.5 42.3 – 100.0
(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.
Classification of Investments
by Geographical Location
Industry Analysis of Investments
by Geographical Location
At 31 December 2025 At 31 December 2024
United United
Kingdom Non-UK Total Kingdom Non-UK Total
% % % % % %
Financials 33.0 11.1 44.1 30.0 16.7 46.7
Consumer Goods 1.8 12.1 13.9 1.5 8.6 10.1
Consumer Services 3.3 10.2 13.5 4.6 9.2 13.8
Utilities 2.2 3.1 5.3 2.4 3.0 5.4
Basic Materials 3.5 1.0 4.5 2.3 1.3 3.6
Telecommunications 0.6 3.5 4.1 1.5 3.5 5.0
Oil and Gas 0.3 3.6 3.9 0.8 2.3 3.1
Technology – 3.6 3.6 – 0.7 0.7
Health Care 0.9 2.2 3.1 1.0 2.9 3.9
Industrials 0.7 1.8 2.5 3.5 1.7 5.2
Government Bonds 1.5 0.6 2.1 2.6 0.2 2.8
Derivative Instrument – (0.6) (0.6) – (0.3) (0.3)
Portfolio Total 47.8 52.2 100.0 50.2 49.8 100.0
The percentages shown in the above tables are related to the value of investments of £417.8 million (2024: £375.7 million).
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22
Currency Exposure
Investments and cash, including and excluding
currency hedging
At 31 December 2025 At 31 December 2024
Including Currency Hedging
Excluding
Including Currency Hedging
Excluding
Sterling Other Total Hedging Sterling Other Total Hedging
% % % % % % % %
Fixed interest
(1)(2)
37.7 44.2 81.9 82.2 35.5 43.4 78.9 78.5
Convertibles
(2)
13.5 1.8 15.3 15.4 15.1 1.8 16.9 16.8
Preference 1.2 0.4 1.6 1.6 1.7 0.4 2.1 2.1
Equities – 0.2 0.2 0.2 – 0.8 0.8 0.8
Credit Default Swaps – (0.6) (0.6) (0.6) – (0.3) (0.3) (0.3)
Portfolio Total 52.4 46.0 98.4 98.8 52.3 46.1 98.4 97.9
Cash 0.5 0.7 1.2 1.2 0.3 1.8 2.1 2.1
Portfolio and Cash Total 52.9 46.7 99.6 100.0 52.6 47.9 100.5 100.0
Currency Hedging
Forward currency sales 38.6 (38.2) 0.4 ______ 30.8 (31.3) (0.5)
Net Currency Exposure 91.5 8.5 100.0 ______ 83.4 16.6 100.0
(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.
(2) Fixed interest (81.9%) includes 9.6% attributable to Additional Tier 1 bonds and Convertibles (15.3%) includes 6.3% attributable t
o Additional Tier 1 bonds at 31 December 2025
(31 December 2024: Fixed interest (78.9%) includes 10.2% attributable to Additional Tier 1 bonds and Convertibles (16.9%) includes 7.6% at
tributable to Additional Tier 1 bonds).
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 22
23
Standard and Poor’s (‘S&P’) ratings. Where a 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 81.
Bond Rating
Analysis
2025 2024
% of Cumulative % of Cumulative
Rating Portfolio Total % Portfolio Total %
Investment Grade:
AAA 0.2 0.2 – –
AA+ 0.2 0.4 0.2 0.2
AA 1.5 1.9 2.6 2.8
A+ 0.3 2.2 0.2 3.0
A – 2.2 0.1 3.1
BBB+ 2.2 4.4 0.6 3.7
BBB 17.4 21.8 19.0 22.7
BBB– 8.2 30.0 4.0 26.7
Non-investment Grade:
BB+ 9.1 39.1 7.5 34.2
BB 10.4 49.5 15.4 49.6
BB– 8.7 58.2 13.6 63.2
B+ 7.4
65.6 5.5 68.7
B 12.0 77.6 14.1 82.8
B– 5.7 83.3 4.9 87.7
CCC+ 2.2 85.5 0.7 88.4
CCC 2.2 87.7 0.7 89.1
CC – 87.7 2.1 91.2
NR (including equity and CDS) 12.3 100.0 8.8 100.0
100.0 100.0
Summary of Analysis
Investment Grade 30.0 26.7
Non-investment Grade 57.7 64.5
NR (including equity and CDS) 12.3 8.8
Total 100.0 100.0
NR: not rated.
CDS: Credit Default Swap
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24
Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Lloyds Banking Group Financials UK
7.875% FRN Perpetual (AT1) Baa3/BBB–/BBB 7,200 1.7
8.5% Cnv FRN Perpetual (AT1) Baa3/BBB–/BBB 3,275 0.8
8.5% Cnv FRN 27 Mar 2071 (AT1) Baa3/BBB–/BBB 1,478 0.4
11,953 2.9
Nationwide Financials UK
7.875% FRN Perpetual (AT1) Baa3/NR/BBB 4,401 1.1
10.25% Perpetual (CCDS) NR/NR/NR 3,911 0.9
7.5% Cnv FRN Perpetual (AT1) Baa3/BB+/BBB 3,493 0.8
11,805 2.8
Barclays Financials UK
9.25% Cnv FRN Perpetual (AT1) Ba1/BB+/BB 5,334 1.3
FRN 14 Nov 2032 Baa1/BBB/BBB 3,825 0.9
8.5% FRN Perpetual (AT1) Ba1/BB+/BB 965 0.2
8.875% Cnv FRN Perpetual (AT1) Ba1/BB+/BB 767 0.2
10,891 2.6
Aviva Financials UK
6.875% Cnv FRN Perpetual Baa2/NR/BBB 5,782 1.4
7.75% FRN Perpetual Baa2/NR/BBB 4,739 1.1
10,521 2.5
Co-Operative Bank Financials UK
11.75% 22 May 2034 Baa2/NR/BBB 4,129 1.0
9.5% Cnv FRN 24 May 2028 (SNR) Baa2/NR/BBB 1,647 0.4
6% FRN 06 Apr 2027 (SNR) Baa2/NR/BBB 1,421 0.3
7.5% FRN 08 Jul 2026 NR/BB–/BB 1,008 0.3
8,205 2.0
Eléctricité De France Utilities France
7.375% FRN Perpetual Ba2/B+/BB 2,976 0.7
5.875% Perpetual Ba2/B+/BB 1,804 0.4
6% Perpetual Baa1/BBB/BBB 1,503 0.4
7.5% FRN Perpetual Ba2/B+/BB 951 0.2
5.625% FRN Perpetual Ba2/B+/BB 908 0.2
8,142 1.9
Thames Water Finance Utilities UK
7.75% 30 Apr 2044 Caa3/CCC/CCC 4,869 1.1
8.25% 25 Apr 2040 (SNR) Caa3/CCC/CCC 2,024 0.5
9.75% 10 Oct 2027 B2/NR/B 1,145 0.3
0% 22 Mar 2027 NR/NR/NR 63 0.0
4.625% 19 May 2026 (SNR) NR/NR/NR 20 0.0
8,121 1.9
BNP Paribas Financials France
9.25% FRN Perpetual (AT1) Ba1/BBB–/BBB 6,503 1.6
FRN Perpetual (AT1) Ba1/BBB–/BBB 1,358 0.3
7,861 1.9
OSB Financials UK
7.75% FRN Perpetual (AT1) Ba2/NR/BB 3,599 0.8
8.875% Cnv 16 Jan 2030 (SNR) Baa2/NR/BBB 1,952 0.5
Cnv FRN 27 Jul 2033 Baa3/NR/BBB 1,653 0.4
7,204 1.7
Engineering Ingegneria Informatica Technology Italy
11.125% 15 May 2028 B3/B–/B 4,150 1.0
FRN Perpetual B3/B–/B 1,951 0.5
8.625% 15 Feb 2030 (SNR) B3/B–/B 934 0.2
7,035 1.7
Portfolio of Investments
in order of Market Valuation
AT 31 DECEMBER 2025
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 24
25
Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Market Bidco Finco Consumer Goods UK
8.75% 31 Jan 2031 (SNR) B1/B+/B 3,943 1.0
6.75% 31 Jan 2031 (SNR) B1/B+/B 3,032 0.7
6,975 1.7
Ineos Quattro Basic Materials UK
7.25% 31 Mar 2031 (SNR) B2/BB–/BB 2,999 0.7
6.75% 15 Apr 2030 (SNR) B3/BB–/BB 1,602 0.4
8.5% 15 Mar 2029 (SNR) B3/BB–/BB 1,038 0.2
7.5% 15 Apr 2029 (SNR) B2/BB–/BB 754 0.2
9.625% 15 Mar 2029 (SNR) B3/BB–/BB 309 0.1
6,702 1.6
Jerrold Finco Financials UK
7.875% 15 Apr 2030 NR/BB/BB 3,551 0.9
7.5% 15 Jun 2031 (SNR) NR/BB/BB 3,067 0.7
6,618 1.6
Techem Consumer Services Germany
FRN 15 Jul 2032 (SNR) B2/B+/B 6,592 1.6
Zopa Group Financials UK
14.4% FRN 25 Nov 2033 NR/NR/NR 4,459 1.1
12.875% FRN Perpetual (AT1) NR/NR/NR 2,120 0.5
6,579 1.6
UK Treasury Bill Government Bonds UK
0.5% 22 Oct 2061 Aa3/AA/AA 3,129 0.7
3.75% 22 Oct 2053 Aa3/AA/AA 2,356 0.6
4% 22 Oct 2063 Aa3/AA/AA 772 0.2
6,257 1.5
Natwest Financials UK
7.5% Cnv FRN Perpetual (AT1) Baa3/NR/BBB 3,665 0.9
7.625% FRN Perpetual (AT1) Baa3/NR/BBB 1,475 0.4
Cnv FRN 6 Jun 2033 Baa1/BBB+/BBB 947 0.2
6,087 1.5
Saffron Building Society Financials UK
Cnv FRN 19 Oct 2034 NR/NR/NR 5,996 1.4
Volkswagen Financial Services Consumer Goods Netherlands
5.994% FRN Perpetual Baa3/BBB–/BBB 5,867 1.4
Atom Financials UK
Cnv FRN 08 Jan 2035 NR/NR/NR 5,663 1.4
Vodafone Group Basic Materials UK
8% FRN Perpetual (SUB) Ba1/BB+/BB 5,450 1.3
888.com Consumer Services Gibraltar
10.75% 15 May 2030 (SNR) B2/B–/B 3,772 0.9
8% 30 Sep 2031 (SNR) B2/B–/B 1,560 0.4
5,332 1.3
Virgin Media O2 Telecommunications Ireland
7.875% 15 Mar 2032 NR/NR/NR 5,159 1.2
Newcastle Building Society Financials UK
12.25% Cnv FRN Perpetual NR/NR/NR 5,004 1.2
CPUK Finance Consumer Services Jersey
7.875% 28 Aug 2055 NR/B/B 2,197 0.5
6.875% 28 Aug 2032 NR/B/B 1,472 0.4
4.5% 28 Aug 2027 NR/B/B 1,176 0.3
4,845 1.2
UTB Partners Financials UK
13% FRN Perpetual (AT1) NR/NR/NR 4,472 1.1
Kane Bidco Financials Jersey
7.75% 15 Jul 2031 (SNR) B1/B+/B 2,852 0.7
FRN 15 Jul 2032 (SNR) B1/B+/B 1,547 0.4
4,399 1.1
Legal & General Financials UK
5.625% FRN Perpetual Baa2/BBB/BBB 4,379 1.1
DNO ASA Oil and Gas Norway
9.25% 04 Jun 2029 (SNR) NR/NR/NR 2,510 0.6
8.5% 27 Mar 2030 (SNR) NR/NR/NR 1,684 0.4
4,194 1.0
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Portfolio of Investments
in order of Market Valuation (continued)
Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Atos Technology France
5% Var 18 Dec 2030 (SNR) NR/CCC/CCC 2,153 0.5
9% Var 18 Dec 2029 NR/B+/B 1,996 0.5
4,149 1.0
Waga Bond Consumer Services Jersey
8.5% 15 Jun 2030 (SNR) B2/B/B 4,111 1.0
Punch Finance Consumer Services UK
7.8755% 30 Dec 2030 (SNR) B3/NR/B 4,077 1.0
Ford Motor Credit Consumer Goods USA
6.86% 05 Jun 2026 Ba1/BBB–/BBB 4,063 1.0
Lion/Polaris Consumer Goods Luxembourg
FRN 01 July 2029 (SNR) B2/B/B 4,026 1.0
Sainsbury’s Bank Financials UK
10.5% FRN 12 Mar 2033 Ba1/NR/BB 4,016 1.0
Deutsche Bank Financials Germany
FRN Perpetual (AT1) Ba2/BB/BB 3,446 0.8
8.125% Cnv FRN Perpetual (AT1) Ba2/BB/BB 568 0.1
4,014 0.9
Bertrand Franchise Consumer Goods France
FRN Perpetual (SNR) B3/B–/B 3,980 0.9
Fiber Bidco Industrials Italy
FRN 15 Jan 2030 (SNR) B3/B–/B 2,134 0.5
5.125% 30 Jan 2032 (SNR) Ba1/BB+/BB 1,773 0.4
3,907 0.9
Rino Mastrotto Consumer Goods Italy
FRN 31 Jul 2031 (SNR) B2/B/B 3,797 0.9
RL Finance Financials UK
10.125% Cnv FRN Perpetual Baa3/BBB/BBB 3,741 0.9
Haleon Health Care UK
9.5% Preference NR/NR/NR 3,654 0.9
Bayer Health Care Germany
7% FRN Perpetual (SUB) Ba1/BB+/BB 1,917 0.5
5.5% FRN Perpetual (SUB) Baa3/BB+/BB 1,713 0.4
3,630 0.9
ING Financials Netherlands
6.25% Cnv FRN 20 May 2033 Baa2/BBB+/BBB 3,604 0.9
IHO Verwaltungs Consumer Goods Germany
6.75% 15 Nov 2029 (SNR) Ba2/BB–/BB 1,929 0.5
8% 15 Nov 2032 (SNR) Ba2/BB–/BB 1,604 0.4
3,533 0.9
ASG Finance Design Consumer Services Ireland
9.75% 15 May 2029 (SNR) NR/BB–/BB 3,461 0.8
IM Group Consumer Services France
8% 01 Mar 2028 (SNR) Caa1/CCC+/CCC 3,430 0.8
Pension Insurance Financials UK
7.375% FRN Perpetual NR/NR/BBB 3,269 0.8
Telefonica Telecommunications Netherlands
FRN Perpetual Ba2/BB/BB 2,174 0.5
6.75% FRN Perpetual (SUB) Ba2/BB/BB 868 0.2
3,042 0.7
JP Morgan Chase Financials USA
FRN Perpetual (SNR) (AT1) Baa1/BBB/BBB 3,026 0.7
Maison Industrials UK
6% 31 Oct 2027 (SNR) NR/B/B 2,974 0.7
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Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Grupo Antolin Consumer Goods Spain
10.375% 30 Jan 2030 (SNR) B3/B–/B 2,952 0.7
Teva Pharmaceutical Finance Health Care Netherlands
6.75% 01 Mar 2028 (SNR) Ba1/BB+/BB 2,315 0.6
5.125% 09 May 2029 (SNR) Ba1/BB+/BB 585 0.1
2,900 0.7
Pinewood Finance Consumer Services UK
6% 27 Mar 2030 (SNR) NR/BB+/BB 2,855 0.7
BT Telecommunications UK
8.375% FRN Perpetual Ba1/BB+/BB 2,672 0.6
ZF Group Consumer Goods Netherlands
7% 12 Jun 2030 (SNR) Ba2/BB–/BB 1,836 0.4
6.125% 13 Mar 2029 (SNR) Ba2/BB–/BB 452 0.1
7.125% 14 Apr 2030 (SNR) Ba2/BB–/BB 375 0.1
2,663 0.6
Codere New Topco Consumer Services Luxembourg
11% PIK 31 Dec 2028 NR/NR/NR 1,707 0.4
A1 Shares NR/NR/NR 639 0.1
A2 Shares NR/NR/NR 302 0.1
2,648 0.6
Allwyn Entertainment Consumer Services UK
7.875% 30 Apr 2029 (SNR) NR/BB/BB 1,780 0.4
7.25% 30 Apr 2030 NR/BB/BB 830 0.2
2,610 0.6
Flora Food Management Consumer Goods Netherlands
6.875% 02 Jul 2029 (SNR) B2/B/B 2,606 0.6
RLGH Finance Bermuda Financials Bermuda
8.25% 17 Jul 2031 Baa2/NR/BBB 2,604 0.6
CaixaBank Financials Spain
8.25% Cnv FRN Perpetual (AT1) NR/BB+/BB 2,526 0.6
Dana Financing Luxembourg Consumer Goods Luxembourg
8.5% 15 Jul 2031 (SNR) B1/BB–/BB 2,508 0.6
Société Générale Financials France
7.875% Cnv FRN Perpetual (AT1) Ba2/BB/BB 1,509 0.4
FRN Perpetual (AT1) Ba2/BB/BB 890 0.2
2,399 0.6
Voyager Parent Consumer Services USA
9.25% 01 Jul 2032 (SNR) B1/B/B 2,367 0.6
Boots Group Finco Health Care USA
7.375% 31 Aug 2032 (SNR) B1/B+/B 1,447 0.4
5.375% 31 Aug 2032 (SNR) B1/B+/B 901 0.2
2,348 0.6
Petra Diamonds Basic Materials UK
10.5% PIK 08 Mar 2026 NR/B–/B 2,289 0.6
Common Stock NR/NR/NR 55 0.0
2,344 0.6
HSBC Financials UK
FRN 13 Nov 2034 (SUB) Baa1/BBB+/BBB 1,885 0.5
5.25% 14 Mar 2044 Baa1/BBB+/BBB 444 0.1
2,329 0.6
Eutelsat Telecommunications France
9.75% 13 Apr 2029 (SNR) Ba3/NR/BB 2,304 0.6
DeepOcean Oil and Gas Jersey
6% 08 Apr 2031 (SNR) B1/BB–/BB 2,234 0.5
New Frigoglass Group Industrials Netherlands
11% PIK 27 Mar 2026 NR/NR/NR 1,145 0.3
11% 20 Apr 2028 NR/NR/NR 877 0.2
0% 27 Mar 2028 NR/NR/NR 187 0.0
Common Stock NR/NR/NR 5 0.0
2,214 0.5
Heathrow Finance Financials UK
6.625% 01 Mar 2031 (SNR) B1/NR/B 1,267 0.3
4.125% 01 Sep 2029 (SNR) B1/NR/B 938 0.2
2,205 0.5
Aston Martin Consumer Goods Jersey
10.375% 31 Mar 2029 (SNR) Caa1/CCC+/CCC 1,821 0.4
10% 31 Mar 2029 (SNR) Caa1/CCC+/CCC 346 0.1
2,167 0.5
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Portfolio of Investments
in order of Market Valuation (continued)
Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Beazley Financials Ireland
5.875% 04 Nov 2026 NR/NR/BBB 2,147 0.5
Benteler International Consumer Goods Austria
7.25% 15 Jun 2031 (SNR) Ba3/BB–/BB 2,089 0.5
Lancashire Financials Bermuda
5.625% 18 Sep 2041 (FRN) Baa3/BBB–/BBB 2,087 0.5
MAHLE Consumer Goods Germany
7.125% 15 Jul 2032 (SNR) Ba2/BB–/BB 1,607 0.4
6.5% 02 May 2031 (SNR) Ba2/BB–/BB 453 0.1
2,060 0.5
BP Capital Financials UK
4.25% FRN Perpetual A3/BBB/A 2,037 0.5
Galaxy Bidco Financials UK
8.125% 19 Dec 2029 (SNR) B2/B/B 2,036 0.5
Forvia Consumer Goods France
8% 15 Jun 2030 (SNR) B1/BB–/BB 1,990 0.5
ContourGlobal Utilities Luxembourg
6.75% 28 Feb 2030 (SNR) NR/BB/BB 1,946 0.5
Currenta Group Basic Materials Luxembourg
5.5% 15 May 2030 (SNR) Ba3/BB–/BB 1,937 0.5
Albion Finance Consumer Services Luxembourg
7% 21 May 2030 (SNR) B1/BB–/BB 980 0.2
5.375% 21 May 2030 (SNR) B1/BB–/BB 898 0.2
1,878 0.4
Nexture Consumer Goods Italy
FRN 30 Jul 2032 (SNR) B2/B/B 1,872 0.4
Marb Bondco Consumer Services UK
3.95% 29 Jan 2031 (SNR) NR/BB+/BB 1,804 0.4
Petroleos Mexicanos Oil and Gas Mexico
9.5% 15 Sep 2027 (SNR) B1/BBB/BB 788 0.2
6.95% 28 Jan 2060 (SNR) B1/BBB/BB 548 0.1
6.75% 21 Sep 2047 (SNR) B1/BBB/BB 428 0.1
1,764 0.4
TGS ASA Oil and Gas Norway
8.5% 15 Jan 2030 (SNR) Ba3/BB–/BB 1,738 0.4
AA Bond Co Consumer Services Jersey
7.375% 31 Jul 2050 (SNR) NR/BBB/BBB 1,353 0.3
8.45% 31 Jul 2050 (SNR) NR/BBB/BBB 366 0.1
1,719 0.4
Enel Utilities Netherlands
7.75% 14 Oct 2052 (SNR) Baa1/BBB/BBB 1,716 0.4
Monitchem Basic Materials Luxembourg
8.75% 01 May 2028 (SNR) B3/B/B 1,661 0.4
Stora Enso Industrials Finland
7.25% 15 Apr 2036 Baa3/NR/BBB 1,645 0.4
Intesa Financials Italy
6.375% Cnv FRN Perpetual (AT1) Ba2/BB/BB 1,642 0.4
Telecom Italia Telecommunications Italy
7.875% 31 Jul 2028 (SNR) Ba2/BB/BB 1,053 0.3
7.721% 04 Jun 2038 (SNR) Ba2/BB/BB 537 0.1
1,590 0.4
Viridien Oil and Gas France
10% 15 Oct 2030 (SNR) B2/B/B 1,567 0.4
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Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Genesis Energy Oil and Gas USA
8.875% 15 Apr 2030 (SNR) B3/B/B 1,563 0.4
Gatwick Airport Finance Financials UK
6% 21 Nov 2030 (SNR) Ba2/NR/BB 1,560 0.4
Morgan Stanley Financials USA
Depositary Shares (AT1) Baa3/BBB–/BBB 1,551 0.4
Quick Top Technology Sweden
FRN 21 Mar 2030 (SNR) B2/B/B 1,518 0.4
Saturn Holdings Financials UK
9% FRN 26 Feb 2036 NR/NR/NR 1,511 0.4
Preem Oil and Gas Sweden
12% 30 Jun 2027 (SNR) B2/BB–/B 1,444 0.4
Ecclesiastical Insurance Office Financials UK
8.625% Preference NR/NR/NR 1,440 0.3
Altice Telecommunications France
5.625% 15 Jun 2032 (SNR) Caa1/CCC+/CCC 958 0.2
7.25% 01 Nov 2029 (SNR) Caa1/CCC+/CCC 333 0.1
Common Stock NR/NR/NR 135 0.0
1,426 0.3
Lottomatica Consumer Services Italy
4.875% 31 Jan 2031 (SNR) Ba2/BB/BB 1,404 0.3
FR Bondco Consumer Goods France
6.875% 31 Oct 2032 (SNR) Caa1/CCC+/CCC 1,394 0.3
Vattenfall Utilities Sweden
6.875% FRN Perpetual (SUB) Baa2/BB+/BB 1,375 0.3
Coventry Building Society Financials UK
8.75% Cnv FRN Perpetual (AT1) Ba1/NR/BB 1,370 0.3
GTCR Technology Netherlands
8.5% 15 Jan 2031 (SNR) Ba3/BB/BB 1,364 0.3
Valeo Consumer Goods France
5.125% 20 May 2031 (SNR) Ba1/BB/BB 1,348 0.3
Virgin Money Financials UK
Cnv FRN 23 Aug 2029 (SNR) A3/BBB+/A 1,332 0.3
Mobico Group Consumer Services UK
4.875% 26 Sep 2031 (SNR) B2/NR/B 690 0.2
FRN Perpetual Caa1/NR/CCC 626 0.1
1,316 0.3
OEG Finance Oil and Gas UK
7.25% 27 Sep 2029 (SNR) B1/NR/B 1,307 0.3
CIRSA Finance Consumer Services Luxembourg
7.875% 31 Jul 2028 (SNR) B1/NR/B 1,282 0.3
John Lewis Consumer Services UK
4.25% 18 Dec 2034 (SNR) NR/NR/NR 1,272 0.3
Aegon Financials Bermuda
5.625% FRN Perpetual Baa3/BB+/BB 1,256 0.3
Alexandrite Lake Lux Holdings Financials Luxembourg
6.75% 30 Jul 2030 (SNR) NR/B+/B 1,254 0.3
Dynamo Consumer Goods Germany
6.25% 15 Oct 2031 (SNR) B2/B/B 1,209 0.3
Quilter Financials UK
8.625% FRN 18 Apr 2033 NR/NR/BBB 1,116 0.3
Centrica Utilities UK
7% 19 Sep 2033 (SNR) Baa2/BBB/BBB 1,108 0.3
Commerzbank Financials Germany
7.5% FRN Perpetual (AT1) Ba1/BB/BB 1,093 0.3
Bank Of Ireland Financials Ireland
7.594% FRN 06 Dec 2032 Baa1/BBB/BBB 1,046 0.2
FiberCop Technology Italy
7.721% 04 Jun 2038 (SNR) Ba1/BB+/BB 1,004 0.2
Hammerson Financials UK
5.875% 08 Oct 2036 Baa2/NR/BBB 1,000 0.2
Alpha Services & Holdings Consumer Goods Greece
11.875% Cnv FRN Perpetual (AT1) Ba3/NR/BB 970 0.2
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Portfolio of Investments
in order of Market Valuation (continued)
Market
Country of Value % of
Issuer/issue Rating
(1)
Industry Incorporation £’000 Portfolio
Castello BC Bidco Consumer Services Italy
FRN 14 Nov 2031 (SNR) B2/B/B 879 0.2
Chesnara Financials UK
8.5% FRN Perpetual NR/NR/BBB 867 0.2
Germany (Federal Republic Of) Government Bonds Germany
2.5% 15 Feb 2035 NR/AAA/AAA 851 0.2
AXA Financials France
6.379% FRN Perpetual A2/BBB+/BBB 850 0.2
B&M Consumer Services Luxembourg
4% 15 Nov 2028 (SNR) Ba1/BB+/BB 833 0.2
Bausch & Lomb Consumer Services USA
FRN 15 Jan 2031 (SNR) B1/NR/B 813 0.2
National Bank Of Greece Financials Greece
Cnv FRN 28 Jun 2035 Ba1/NR/BB 777 0.2
CCO Holdings Telecommunications USA
7.375% 01 Mar 2031 (SNR) B1/BB–/BB 759 0.2
US Treasury Note Government Bonds USA
3.875% 15 Aug 2033 Aa1/AA+/AA 739 0.2
Zurich Finance Financials Ireland
5.125% FRN 23 Nov 2052 A1/A+/A 710 0.2
CNP Assurances Financials France
4.875% FRN Perpetual Baa2/BBB/BBB 693 0.2
Phoenix Financials UK
FRN Perpetual NR/NR/BBB 648 0.2
La Financière ATALIAN Consumer Services France
8.5% PIK 30 Jun 2028 Caa3/CCC+/CCC 646 0.2
PGH Capital Financials UK
5.375% 06 Jul 2027 NR/NR/BBB 624 0.1
Cerved Consumer Services Italy
FRN 15 Feb 2029 (SNR) B3/B/B 614 0.1
Nickel Industries Basic Materials Australia
9% 30 Sep 2030 (SNR) B1/NR/B 611 0.1
UBS Financials Switzerland
9.75% FRN Perpetual (AT1) NR/NR/NR 384 0.1
4.5% FRN Perpetual (AT1) NR/NR/NR 171 0.0
555 0.1
Spectrum Management Telecommunications USA
4.5% 15 Sep 2042 (SNR) Ba1/BBB–/BBB 516 0.1
RAC Bond Consumer Goods UK
FRN 04 Nov 2046 (SNR) NR/B+/B 496 0.1
Peel Land & Property Investments Financials UK
8.375% Var 30 Apr 2040 NR/BBB/BBB 494 0.1
Italy (Republic Of) Government Bonds Italy
3.65% 01 Aug 2035 Baa2/BBB/BBB 443 0.1
Spain (Kingdom Of) Government Bonds Spain
3.15% 30 Apr 2035 NR/A+/A 433 0.1
Kosmos Energy Oil and Gas USA
7.75% 01 May 2027 (SNR) Caa3/CCC+/CCC 338 0.1
Total investments held at fair value
through profit or loss 420,214 100.6
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Derivative Instruments – Credit Default Swaps
Market
Coupon Value % of
Company Nominal % Maturity Date £’000 Portfolio
iTraxx Europe Crossover
Series 42 5% 5 Year €6,000,000 5.00 20 Dec 2030 (1,857) (0.5)
Series 42 5% 5 Year €19,000,000 5.00 20 Dec 2030 (586) (0.1)
Total derivatives held at fair value
through profit or loss (2,443) (0.6)
Total investments and derivatives held
at fair value through profit or loss 417,771 100.0
(1) Moody’s/Standard & Poor’s (S&P)/Equivalent average rating. Please see Credit Ratings Definitions on page 81 for further information.
Abbreviations used in the above valuation:
Cnv: Convertible
FRN: Floating Rate Note
SNR: Senior
SUB: Subordinated Notes
PIK: Payment in Kind
Var: Variable
CCDS: Core Capital Deferred Shares
AT1: Additional Tier 1 bond
Portfolio of Investments
in order of Market Valuation (continued)
Bond Income Plus AR 1 Strategy p06-31 V2.qxp 31/03/2026 14:23 Page 31
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Invesco Bond Income Plus Limited
2
Governance
Directors ........................................................................................33
Directors’ Report ............................................................................34
The Company’s Corporate Governance Framework .........................37
Corporate Governance Statement ..................................................38
Audit & Risk Committee Report ......................................................41
Directors’ Remuneration Report .....................................................43
Directors’ Responsibilities Statement ..............................................45
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 32
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Directors
Tim Scholefield (Chairman)
Tim Scholefield, a Director of the Company,
joined the Board on 15 June 2017, and
became Chairman on the same date. He was
Head of Equities at Baring Asset Management
until 2014. He now holds a portfolio of
non-executive directorships including
Aberdeen UK Smaller Companies Growth Trust
Plc and Allianz Technology Trust plc.
Tim contributes to the Company’s long-term sustainable success by
drawing on his considerable experience of the investment
management industry and asset markets. He has extensive
experience of the management and operation of investment trusts,
and his independence from the Manager means that he is able to act
as Chairman to lead the Board effectively.
Heather MacCallum
Heather MacCallum, a Director of the
Company, joined the Board on 25 June 2019
and became Chair of the Audit & Risk
Committee in September 2019 and Senior
Independent Director in June 2023. She is a
Chartered Accountant and was a partner with
KPMG Channel Islands for 15 years before
retiring from the partnership in 2016. She now
holds a portfolio of non-executive
directorships, including EPE Special Opportunities Limited.
Heather contributes to the Company’s long term sustainable success
by drawing on her qualification as a Chartered Accountant and
significant relevant experience as partner at KPMG Channel Islands.
This allows her to effectively contribute and Chair the Company’s
Audit & Risk Committee.
Christine Johnson
Christine Johnson, a Director of the Company,
joined the Board on 19 May 2021 following the
merger with Invesco Enhanced Income Limited
(‘IPE’), and became Chair of the Management
Engagement Committee on the same day. She
was formerly Head of Fixed Income at Old
Mutual Global Investors, Senior Fund Manager
at HSBC Group (Halbis Capital Management)
and Fund Manager at Investec Asset
Management. She is currently a non-executive director of Golden
Charter Trust, First Sentier Investors and Mainsheet Ventures UK.
Christine’s executive career provides her with an in depth knowledge
of investment management and in particular of the Fixed Income
sector. Her other non-executive positions provide experience in a
range of sectors and asset classes.
Caroline Dutot
Caroline Dutot, a Director of the Company,
joined the Board on 15 December 2020. She
is a founder of and Advocate at Ardent
Chambers, a legal chambers based in Jersey.
She has a specialist knowledge of compliance,
governance and risk matters and provides
advice and litigation services to individuals,
boards, businesses, go
vernments and
regulators. She has long-standing experience
of working with and for regulatory and public authorities, including
the Attorney General in Jersey and the Jersey Financial Services
Commission.
Caroline brings to the Company her legal knowledge and specialism
in compliance, governance and risk. She also brings her experience
of working with regulatory and public authorities.
Arun Kumar Sarwal
Arun Kumar Sarwal, a Director of the
Company, joined the Board on 11 June 2025.
He has broad experience of global equities and
fund management with over 35 years in the
UK, Europe, and Asia. He is Chair of the Board
at Tumelo and Audit Chair of Dunedin Income
Growth Investment Trust plc and JPMorgan
European Discovery Trust plc. He is a qualified
Chartered Accountant, Fellow of The
Association of Corporate Treasurers and Chartered Marketer. His
previous roles include CEO of Broadridge Fund Communication
Solutions and DST Global Solutions, COO at Scottish Widows
Investment Partnership and global roles at ABN AMRO and Societe
Generale.
Arun brings commercial experience from C-Suite roles in companies
in the financial sector, including investment and wealth management,
in addition to his financial skills, from being an accountant and
corporate treasurer.
All Directors are non-executive and, in the opinion of the Board, are
independent of the Manager.
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 33
Business and Status
The Company is a closed-end public investment company limited
by shares incorporated in Jersey, Channel Islands on
19 December 2011, registered under the Companies (Jersey)
Law 1991 (registered number 109714) and established as a
Listed fund. It commenced trading on 2 April 2012 following the
scheme of reconstruction and voluntary winding up of CMHYT
PLC on 30 March 2012, as detailed in the prospectus dated
23 February 2012. On 19 May 2021 the Company merged with
Invesco Enhanced Income Limited (‘IPE’), effected by way of a
shareholder approved contractual scheme of reconstruction by
IPE and a transfer of assets. The Company is a collective
investment fund under the Collective Investment Funds (Jersey)
Law 1988 and is registered as an International Services Entity
under the Goods and Services Tax (Jersey) Law 2007.
Corporate Governance
The Corporate Governance Statement set out on pages 38 to 40
is included in this Directors’ Report by reference.
Directors’ Remuneration and Interests
Details of the Directors’ remuneration and interests in the
Company are set out on pages 43 and 44 and are included in this
Directors’ Report by reference.
Greenhouse Gas Emissions
The Company has no employees or property, it does not combust
any fuel or operate any facility. The Company does not purchase
electricity, heat, steam or cooling for its own use. All services are
outsourced on a fee basis that is independent of any energy
expended on its behalf and it is not practical for the Company to
attempt to quantify emissions in respect of such proxy energy
use. Where possible, the Directors offset their carbon usage for
travel to board meetings by the purchase of carbon credits from
the Durrell Rewild Carbon scheme.
Stated Capital and Rights Attaching to the
Company’s Ordinary Shares
At the beginning of the year, the Company’s stated capital
consisted of 202,379,323 ordinary shares of no par value,
allotted and fully paid. During the year, 34,950,000 ordinary
shares of no par value (representing 17.3% of the number of
shares in issue at the beginning of the year) were issued to
Winterflood Securities Limited at a price range of 167.00p to
176.05p for total proceeds (net of commission) of £60,098,000.
No shares were bought back during the year.
As at 31 December 2025, the number of ordinary shares in issue
(with voting rights) was 237,329,323. There are no shares in
treasury.
At an Extraordinary General Meeting of the Company, held on
12
February 2026, shareholders approved the renewal of
authorities to issue up to 20% of the Company’s shares on a non
pre-emptive basis. These authorities are valid until the conclusion
of the 2026 AGM at which new authorities will be sought (see
page 35 for further information).
A further 20.12 million shares have been issued since
31 December 2025 and up to 27 March 2026, being the last
practicable date prior to publication of the Annual Financial
Report. These shares were issued at a price range of 171.84p to
176.43p for total proceeds (net of commission) of £34,794,000.
This includes 14,372,588 shares issued as a result of a Placing
and Retail Offer at a price of 173.28p for total proceeds (net of
commission) of £24,780,000. No shares have been bought back
since the year end.
At a general meeting of the Company every member has one vote
on a show of hands and on a poll one vote for each share held.
The notice of general meeting will specify deadlines for exercising
voting rights either by proxy or in person in relation to resolutions
to be passed at the meeting.
The Directors may restrict voting powers where shareholders fail
to provide information with respect to interests in voting rights
when so requested, may refuse to register any transfer of a share
in favour of more than four persons jointly and can require certain
US holders of shares to transfer their shares compulsorily.
Save for the foregoing, there are no restrictions concerning the
transfer of securities in the Company; no special rights with
regard to control attached to securities; no agreements between
holders of securities regarding their transfer known to the
Company; and no agreements which the Company is party to that
might affect its control follo
wing a successful takeover bid.
Disclosures Required by UK Listing
Rule6.6.1R
The above rule requires the Company to include certain applicable
information in a single identifiable section of the Annual Financial
Report. For this year, only one item of this information
applies – disclosure around the issue of shares – and this is
covered by note 16 on page 63 (stated capital).
Relations with Shareholders and other
Stakeholders
Some examples of the Company’s engagement with shareholders
and other stakeholders are:
Shareholders: The Board endeavours to provide shareholders with
a full understanding of the Company’s activities and reports
formally to shareholders each year by way of the Half-Yearly and
Annual Financial Reports. This is supplemented by the daily
publication of the net asset value of the Company’s ordinary
shares and monthly fac
tsheets. Shareholders who attend the
AGM can meet the Board and the Manager and have the
opportunity to hear directly from the Manager and
ask questions. Shareholders can also visit the Company’s
section of the Manager’s investment trust website,
www.invesco.co.uk/bips to access copies of Half-Yearly and
Annual Financial Reports, shareholder circulars, factsheets and
Stock Exchange Announcements.
There is a regular dialogue between the Board, the Manager and
significant shareholders to discuss aspects of investment
performance, governance and strategy and to listen to
Directors’ Report
34
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35
shareholders’ views in order to help to develop an understanding
of their issues. Meetings between the Manager and shareholders
are reported to the Board, which monitors and reviews
shareholder communications on a regular basis.
Portfolio companies: The Manager engages with investee
companies, particularly in relation to ESG matters and has also
engaged with some investee companies in relation to restructuring.
Corporate Broker: The Board and the Manager regularly engage
with the Corporate Broker in relation to the sales strategy and
marketing of the Company, in order to provide liquidity for
investors. The Corporate Broker also supports the Manager by
arranging webinars, roadshows and meetings to introduce the
Manager to potential investors.
Media: The Manager’s Investor Relations team work with the
mainstream press and social media platforms such as LinkedIn,
to raise the Company’s profile and that of the Portfolio Manager’s.
The success of this activity is measured by monitoring direct
website hits, click-throughs from third party websites, as well as
new investment in the Company via retail platforms.
AIC: the Company is a member of the AIC, which looks after the
interests of investment trusts and provides information to the
market. Comprehensive information relating to the Company can
be found on the AIC website.
The Administrator, the Company Secretary, the Registrar, the
Depositary/Custodian: In order to function as an investment trust
with a listing on the London Stock Exchange, the Company relies
on a diverse range of reputable advisers for support in meeting all
relevant obligations. The Board maintains regular contact with its
key external service providers and receives regular reporting from
them, both through the Board and committee meetings, as well as
outside of the regular meeting cycle. Their advice, as well as their
needs and views are routinely taken into account. The Board
(through the Management Engagement Committee) formally
assesses their perf
ormance, fees and continuing appointment
annually to ensure that the key service providers continue to
function at an acceptable level and are appropriately remunerated
to deliver the required level of service. The Audit & Risk Committee
reviews and evaluates the financial reporting control environments
in place at each service provider.
Going Concern
As set out in note 2(a)(ii) to the financial statements on page 56,
the financial statements have been prepared on a going concern
basis. The Directors consider this to be appropriate as the
Company has adequate resources to continue in operational
existence for a period of at least 12 months after approval of the
financial statements. In reaching this conclusion, the Directors
took into account the value of net assets covering the net current
liability position at balance sheet date. the Company’s Investment
Policy; its risk management policies; the diversified portfolio of
readily realisable securities which can be used to meet funding
commitments; its revenue; risks relating to the continuation of
the Company (as set out in the Viability Statement on page 15);
the uncertain economic and geopolitical outlook, the conflicts in
Ukraine and the Middle East; and the ability of the Company in
the light of these factors to meet all its liabilities and ongoing
expenses.
Individual Savings Account (‘ISA’)
The ordinary shares of the Company are qualifying investments
under applicable ISA regulations.
Business of the Annual General Meeting
(‘AGM’)
The following summarises the business of the forthcoming AGM
of the Company, which is to be held at the offices of JTC Fund
Solutions (Jersey) Limited at PO Box 1075, 28 Esplanade,
St Helier, Jersey JE4 2QP on 17 June 2026 at 9.30am. The
Notice of the AGM and related notes can be found on pages 74
and 75. Shareholders are welcome to attend the AGM in person.
If you cannot attend in person please lodge your vote either
electronically via the registrar’s online portal or using the Form(s)
of Proxy to appoint the Chairman of the General Meeting as your
proxy to vote on your behalf.
Ordinary Business:
Resolution 1 is for members to receive this Annual Financial
Report, including the financial statements and Auditor’s Report.
Resolution 2 is for members to approve the Directors’
Remuneration Report. This is an advisory vote.
Resolution 3 is for members to approve the Company’s dividend
payment policy which is set out on page 12. This is also an
advisory vote.
Resolution 4 is to approve the appointment of KPMG Audit
Limited as the Company’s auditor (see page 41 for further
details).
Resolution 5 is to authorise the Audit & Risk Committee to
determine the auditor’s remuneration.
Resolution 6 is to re-elect Heather MacCallum as a Director of
the Company.
Resolution 7 is to re-elect Caroline Dutot as a Director of the
Company.
Resolution 8 is to re-elect Christine Johnson as a Director of the
Company.
Resolution 9 is to elect Arun Kumar Sarwal as a Director of the
Company.
Resolution 10 is to approve the continuation of the Company.
The Company does not have a fixed life, but the Company’s
Articles of Association require that, unless an ordinary resolution
to approve continuation of the Company is passed at or before
the AGM each year, the Directors must convene a general
meeting, to be held within six months of the AGM, at which a
special resolution to wind up the Company would be proposed.
Resolution 11 is to renew the Directors’ authority to issue shares,
up to 10% of the existing shares in issue at the time of the AGM,
without pre-emption. This will allow shares to be issued to new
shareholders without them first having to be offered to existing
shareholders, thus broadening the shareholder base of the
Company. This authority will not be exercised at a price below
NAV so the interests of existing shareholders are not diluted and
will expire at the AGM in 2027. There are no provisions of Jersey
law which confer rights of pre-emption in respect of the allotment
of shares, or require shareholder approval for issues of shares.
The Articles, however, contain pre-emption rights in relation to
allotments of shares for cash and the D
irectors expressed an
intention in the Company’s 2012 prospectus to request that the
authority to allot shares for cash on a non-pre-emptive basis is
renewed at each AGM.
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 35
Resolution 12 seeks an additional authority to that in
Resolution 11 for the Directors to issue shares up to a further 10%
of the existing shares in issue at the time of the AGM. As noted
above for Resolution 11, any shares issued in accordance with this
additional authority would not be at a price below NAV and will
expire at the AGM in 2027. This additional share issuance authority
is aimed at ensuring that the Company is positioned to issue into
market demand on a timely basis at minimal cost to shareholders
in view of the high level of demand for the Company’s shares over
the year under review, with 34,950,000 ordinary shares issued
over the period and a further 20,122,588 ordinary shares issued
since the year end and up to 27 March 2026 (being the latest
practicable date prior to the publication of this report). The Board
believes that such issuance is beneficial for shareholders as it
increases the capital base over which the Company’s fixed costs
are spread, reducing the Company’s ongoing charges ratio and
further minimising costs for shareholders.
Resolution 13 is to renew the authority for the Company to
purchase up to 14.99% of its own ordinary shares subject to the
restrictions referred to in the notice of the AGM. This authority will
expire at the AGM in 2027. These powers, if approved, will allow
the Company to buy back shares at a discount to NAV. Your
Directors are proposing that shares bought back by the Company
either be cancelled or, alternatively, be held as treasury shares
with a view to their resale, if appropriate, or later cancellation. Any
resale of treasury shares will only take place on terms that are in
the best interests of shareholders.
Resolution 14 is to permit the Company to hold general meetings
(other than annual general meetings) on 14 days’ notice. In
accordance with the requirements of the Articles, the Company
will offer shareholders an electronic voting facility at each general
meeting convened on such shorter notice period. The minimum
notice period for annual general meetings will remain at 21 clear
days, in accordance with the Articles. This authority would provide
the Company with flexibility where action needs to be taken quickly
but will only be used where the Directors consider it in the best
interests of shareholders to do so and the matter is required to be
dealt with expediently.
JTC Fund Solutions (Jersey) Limited
Company Secretary
31 March 2026
36
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37
The Board and Committees
Responsibility for good governance lies with the Board. The governance framework of the Company reflects the fact that as an investment
company it has no employees and outsources investment management to the Manager, administration to JTC Fund Solutions (Jersey)
Limited and other related services to external service providers.
The Board
Five non-executive directors
(‘NEDs’)
Chairman: Tim Scholefield
Key objectives:
– to set strategy, values and
standards;
– to provide leadership within
a framework of prudent and
effective controls which
enable risk to be assessed and
managed; and
– to constructively challenge and
scrutinise performance of all
outsourced activities.
The Company’s Corporate
Governance Framework
Management Engagement Committee
All NEDs
Chair: Christine Johnson
Key objectives:
– to review the performance of the Manager; and
– to review other service providers.
Nomination and
Remuneration Committee
All NEDs
Chair: Caroline Dutot
Key objectives:
– to review regularly the Board’s structure and
composition and carry out an annual
performance evaluation of the Chairman, the
Board and committees;
– to make recommendations for any new
appointments and plan for the Board’s succession; and
– to set the remuneration policy of the Company.
Audit & Risk Committee
All NEDs
Chair: Heather MacCallum
Key objectives:
– to oversee financial reporting and the control
environment; and
– to review the effectiveness of the audit process and
the independence and objectivity of the auditor.
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 37
FOR THE YEAR ENDED 31 DECEMBER 2025
The Board is committed to maintaining high standards of
Corporate Governance and is accountable to shareholders for the
governance of the Company’s affairs.
The Directors have considered the principles and
recommendations of the 2024 AIC Code of Corporate
Governance (‘AIC Code’). The AIC Code sets out a framework of
best practice in respect of the governance of investment
companies and has been endorsed by the Financial Reporting
Council (‘FRC’) and is supported by the Jersey Financial Services
Commission. The AIC Code closely reflects the principles and
provisions of the FRC UK Corporate Governance Code
(‘UK Code’).
The AIC Code is available from the Association of Investment
Companies (www.theaic.co.uk).
The Company has complied with the recommendations of the AIC
Code. It has also complied with the provisions of the UK Code,
except its provisions relating to:
• the role of the chief executive;
• executive directors’ remuneration; and
• the need for an internal audit function.
For the reasons explained in the AIC Code, the Board considers
these provisions are not relevant to the position of Invesco Bond
Income Plus Limited, being an externally managed investment
company with no executive employees and, in relation to the
third, in view of the Manager having an internal audit function.
All Directors are available to shareholders if they have concerns
that cannot be resolved through contact with the Chairman, the
Senior Independent Director or the Manager or for which such
contact is inappropriate. The Board considers all Directors to be
independent and thus all Directors are members of the respective
Committees of the Board.
Information on how the Company has applied the principles of
the AIC Code and the UK Code follows:
The composition and operation of the Board and its committee
functions are summarised below and on page 39, and on
pages 41 and 42 in respect of the Audit & Risk Committee.
The Company’s policy on diversity is set out on page 39.
The Company’s approach to internal control and risk management
is summarised on page 13.
The contractual arrangements with, and assessment o
f, the
Manager are summarised on page 16.
The Company’s capital structure and voting rights are
summarised on page 34.
The most substantial shareholders in the Company are listed on
page 16.
The rules concerning the appointment and replacement of
directors are contained in the Company’s Articles of Association
and are discussed on page 39. There are no agreements between
the Company and its directors concerning compensation for loss
of office.
Powers to issue or buy back the Company’s shares, which are
sought annually, and any amendments to the Company’s Articles
of Association require a special resolution to be passed by
shareholders.
The Board
At the end of the financial year the Board comprised five
Directors, all of whom were non-executive. The Board considers
all of the Directors to be independent of the Company’s Manager.
The Directors have a range of financial, business, legal, regulatory
and asset management skills as well as recent and relevant
experience pertinent to the direction and control of the Company.
Brief biographical details of the members of the Board are shown
on page 33. During the year Tom Quigley retired from the Board
and Arun Kumar Sarwal was appointed as a Director, both
effective on 11 June 2025.
Chairman of the Board
The Chair of the Board is Tim Scholefield, an independent
non-executive Director, who has no conflicting relationships.
Senior Independent Director
The Senior Independent Director is Heather MacCallum.
Board Responsibilities
The Directors have a duty to promote the success of the
Company, taking into consideration the likely long-term
consequences of any decisions; the need to foster the Company’s
business relationships with its Manager, other service providers
and advisers; the impact of the Company’s operations on the
community and the environment; the desirability of the Company
maintaining a reputation for high standards of business conduct;
and the need to treat shareholders fairly. This is reported on in
the Business Review on page 17.
The Directors are equally responsible for the proper conduct of
the Company’s affairs and for promoting the success of the
Company by directing and supervising its affairs within a
framework of effective contr
ols which enable risk to be assessed
and managed. In addition, the Directors are responsible for
ensuring that the Company’s policies and operations are in the
best interests of all its shareholders and that the interests of other
stakeholders such as creditors are also properly considered.
Board meetings follow a formal agenda, which includes a review
of the investment portfolio with a report from the portfolio
managers on the current investment position and outlook,
performance against appropriate indices and the Company’s peer
group, asset allocation, gearing, cash management, revenue
forecasts for the financial year, marketing and shareholder
relations, corporate governance, compliance, regulatory changes
and industry and other issues.
The Board is committed to the prevention of corruption in the
conduct of the Company’s affairs and, taking account of the
nature of the Company’s business and operations, has put in place
procedures that the Board considers adequate to prevent persons
associated with it from engaging in bribery for and on behalf of
the Company. The Board has a zero tolerance approach towards
the facilitation of tax evasion.
Corporate Governance
Statement
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39
A formal schedule of matters reserved for decision by the Board
has been established and is available at the Registered Office of the
Company and on the Company’s section of the Manager’s website
at www.invesco.co.uk/bips. The main responsibilities of the Board
include: setting the Company’s objectives, strategy and standards;
ensuring that the Company’s obligations to shareholders and others
are understood and complied with; approving accounting policies
and dividend policy; managing the capital structur
e; assessing risk
and overseeing its mitigation; reviewing investment performance;
approving loans and borrowing; and approving recommendations
by the Audit & Risk Committee, the Nomination and Remuneration
Committee and the Management Engagement Committee.
There is an agreed procedure for Directors, in the furtherance of
their duties, to take legal advice at the Company’s expense up to
an initial cost of £10,000, having first consulted the Chairman.
Management Engagement Committee
The Management Engagement Committee is chaired by Christine
Johnson. The Committee comprises the full Board. The main
responsibilities are to review the Company’s Investment
Management and Company Secretarial and Administration
Agreements. The performance of the Manager in respect of
investment performance and administration is reviewed formally
against agreed standards and reported on page 16 under
‘Assessment o
f the Manager’. The Committee is also responsible
for the review of arrangements with other TPPs. The Committee
has adopted appropriate terms of reference in respect of its
responsibilities which are available at the registered office of the
Company and on the Company’s section of the Manager’s website
at www.invesco.co.uk/bips.
Nomination and Remuneration
Committee
The fact that the Board is small in size and comprised entirely of
independent non-executive Directors means that all Directors are
members of the Nomination and Remuneration Committee. The
Committee is chaired by Caroline Dutot. The main responsibilities
of the Committee are to review the size, structure and skills of the
Board, to make recommendations with regard to any changes
considered necessary or new appointments, and to plan for the
Board’s succession. The Committee is also responsible for
determining the Company’s remuneration policy, taking into account
all factors which are deemed necessary in order to ensure that
members of the Board are provided with appropriate compensation.
The Committee has written terms of reference which are reviewed
regularly and clearly define its responsibilities and duties. The terms
of reference will be available for inspection at the AGM and can
be inspected at the registered office of the Company as well as
on the Company’s section of the Manager’s website at
www.invesco.co.uk/bips.
The Board’s policy on diversity is to seek to ensure that the
Board’s structure, size and composition, including the skills,
knowledge, gender, ethnicity and experience of the Directors, are
sufficient for the effective direction and control of the Company.
This policy, which covers the Board and the Committees, together
with the tenure principles set out in the next section, guides the
Committee.
During the year, as part of ongoing succession planning, Audelis,
an independent external consultancy with no connection to the
Company, was engaged to assist with the search for candidates
in order to appoint a new Director to succeed Tom Quigley. The
search requirements included a preference for a diverse range of
candidates, including those with a strong background in listed
investment trusts, with relevant accountancy and asset
management experience. Following this process, the Nomination
and Remuneration Committee recommended to the Board the
appointment of Arun Kumar Sarwal. After due consideration
Mr Sarwal was appointed to the Board with effect from 11 June
2025, being the strongest candidate with relevant knowledge,
qualifications and experience.
Appointment, Re-election and Tenure of
Directors
New Directors are appointed by the Board, following
recommendation by the Nomination and Remuneration
Committee. An independent external search consultancy may be
used to assist in the selection of Directors. Care is taken to ensure
that when a new Director is appointed there is a balance of skills
and experience appropriate for the requirements of the Company
and that new Directors have enough time available to devote to
the affairs of the Company. The Board has formulated a
programme of induction training for newly-appointed Directors.
There are ongoing arrangements in place to ensure that Directors
can keep up-to-date with new legislation, industry and regulatory
matters and changing risks, including briefings from the Manager
and the Company Secretary.
No Director has a contract of employment with the Company.
Directors’ terms and conditions of appointment are set out in
letters of appointment which are available for inspection at the
registered office of the Company and on the Company’s section
of the Manager’s website at www.invesco.co.uk/bips.
The Articles of Association require that a Director shall retire and
be subject to re-election at the first AGM after appointment and
at least every three years thereafter. Thus, no Director serves a
term of more than three years before re-election. A Director’s
tenure will normally be a maximum of three terms of three years,
except that the Board may determine otherwise if it is considered
that the continued service on the Board of an individual Director
is in the best interests of the Company and its shareholders. The
Board has resolved that in compliance with the 2024 AIC Code
all Directors shall stand for annual re-election. An outline of the
reasons why their contributions and skills continue to be
important to the Company’s long term sustainable success are
included on page 33. The Chairman’s tenure of office will also
normally be for up to nine years, except that the Board may
determine otherwise if it is considered that the continued service
on the Board of a Chairman, who has in addition served a period
of time as a Director, is in the best interests of the Company and
its shareholders.
The Articles of Association provide that the Directors may, by
notice in writing, remove any Director from the Board.
The Audit & Risk Committee
The composition and activities of the Audit & Risk Committee are
summarised in the Audit & Risk Committee Report on pages 41
and 42.
Board, Committee and Directors’
Performance Appraisal
The Directors recognise the importance of the AIC Code’s
recommendations in respect of evaluating the performance of the
Board as a whole, its Committees and individual Directors. The
performance of the Board, Committees and D
irectors is assessed
in the following terms:
• attendance at Board and Committee meetings;
• independence of Directors;
• the ability of Directors to make an effective contribution to
the Board and Committees through the diversity of skills
and experience each Director brings to their role; and
• the Board’s ability to challenge the Manager’s
recommendations, suggest areas of debate and set the
future strategy of the Company.
The composition of the Board is reviewed annually as part of the
appraisal of the Board, the Committees and the individual
Directors. The Board has determined that, periodically and as
appropriate, this review will be facilitated by an external agency.
The last such externally facilitated review was conducted in 2022
and the next one will be undertaken in 2026.
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 39
Heather MacCallum, as Senior Independent Director, was
responsible for the performance evaluation of the Chairman,
taking into account the views of the other Directors.
The Board conducted its performance evaluation through
questionnaires and discussion between the Directors and the
Chairman. The results of this review confirmed that the Board
and committees of the Board are effective, as are the individual
Directors, and that the current directors provide a good range of
experience and backgrounds and are independent of the Manager
and Company Secretary. Accordingly, the Board recommends to
shareholders the approval of AGM resolutions 6 to 9 relating to
the election and re-election of the Directors.
Attendance at Board and Committee Meetings
The Board meets on a regular basis at least four times a year. The following table sets out the number of scheduled meetings of the
Board and Committees held during the year and the number attended by each Director. In addition the Board held a number of ad-hoc
meetings.
Nomination
and Management
Scheduled Audit & Risk Remuneration Engagement
Board Committee Committee Committee
Meeting Meeting Meeting Meeting
Number of Meetings Held: 4 2 2 1
Meetings Attended:
Tim Scholefield (Chairman of the Board) 4 2 2 1
Caroline Dutot (Chair of the Nomination &
Remuneration Committee) 4 2 2 1
Christine Johnson (Chair of the Management
Engagement Committee) 4 2 2 1
Heather MacCallum (Senior Independent Director & Chair
of the Audit Committee) 4 2 2 1
Tom Quigley
(1)
2 1 1 1
Arun Kumar Sarwal
(2)
4
(3)
2
(3)
2
(3)
1
(1) Retired from the Board on 11 June 2025.
(2) Appointed to the Board on 11 June 2025.
(3) Attended one meeting as an observer prior to appointment to the Board.
Regular contact is maintained between the Manager, including the portfolio managers, the Company Secretary and the Board between
formal meetings.
Conflicts of Interest
A Director must avoid a situation where he/she has, or can have,
a direct or indirect interest that conflicts, or possibly may conflict,
with the Company’s interests.
The Articles of Association of the Company give the Directors
authority to approve conflicts and potential conflicts. The
Directors are able to impose limits or conditions when giving
authorisation if they think it is appropriate. Only Directors who
have no conflict of interest in the matter being considered are
able to take the relevant decision. Also, in taking the decision the
Directors must act in a way they consider, in good faith, is most
likely to promote the Company’s success.
The Directors have declared any potential conflicts of interest to
the Company. Any potential conflicts o
f interest are entered onto
the Company’s Register of Potential Conflicts, which is kept at the
Company’s registered office and is reviewed regularly by the
Board. The Directors must advise the Company Secretary as soon
as they become aware of any potential conflicts of interest.
The Company Secretary
JTC Fund Solutions (Jersey) Limited was appointed with effect
from 10 December 2019 as Company Secretary and
Administrator.
The Board has direct access to the advice and services of the
Company Secretary, JTC Fund Solutions (Jersey) Limited, which
is responsible for ensuring that Board and Committee procedures
are followed and that applicable rules and regulations are
complied with. The Company Secretary is also responsible to the
Board for ensuring timely delivery of information and reports and
that the statutory obligations of the Company are met. In
addition, the Company Secretary is responsible for advising the
Board through the Chairman on all governance matters.
Stewardship
The Company’s portfolio predominantly comprises bonds, which
rarely carry voting rights except in specific limited circumstances.
The Company’s stewardship functions have been delegated to the
Manager which exercises the Company’s voting rights on an
informed and independent basis. To the extent that voting rights
are exercisable, the Board considers that the Company has
responsibility as an investor towards ensuring that votes are cast
with a view to supporting high standards of corporate
governance. A copy of the Manager’s Stewardship Code can be
found at www.invesco.co.uk.
By order of the Board
JTC Fund Solutions (Jersey) Limited
Company Secretary
31 March
2026
40
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41
Audit & Risk
Committee Report
FOR THE YEAR ENDED 31 DECEMBER 2025
The Audit & Risk Committee, chaired by Heather MacCallum,
comprises all of the Directors on the Board including the
Chairman of the Board. The Board consider the Chairman of the
Board to be independent and therefore Tim Scholefield has been
appointed as a member of the Audit & Risk Committee. The
Committee has written terms of reference that clearly define its
responsibilities and duties. These can be inspected at the
registered office of the Company and on the Company’s section
of the Manager’s website at www.invesco.co.uk/bips. The
Committee members consider that collectively they have
substantial recent and relevant financial experience and
competence relevant to the sector to discharge their
responsibilities effectively.
Audit & Risk Committee Responsibilities
The responsibilities of the Audit & Risk Committee include:
– evaluation of the effectiveness of the internal controls and
risk management systems, including reports received on
the operational controls of the Company’s service providers
and the Manager’s and the Company Secretary’s
whistleblowing arrangements;
– reviewing the Company’s annual and half-yearly financial
reports and announcements and ensuring compliance with
relevant statutory and listing requirements and the
appropriateness of accounting policies applied;
– management of the relationship with the external auditor,
including their appointment, remuneration, and the scope,
effectiveness, independence and objectivity of their audit;
and
– ensuring, at the request of the Board, that the Company’s
Annual Financial Report taken as a whole is fair, balanced
and understandable and provides the necessary
information for shareholders to assess the C
ompany’s
position and performance, business model and strategy.
Audit & Risk Committee Activities
The Committee met twice during the year. The Committee
undertook a review of the Company’s internal controls and risk
management including the risk control summary used to identify
the Company’s top risks. The review process included
consideration of emerging risks and procedures for their
identification. The result of this work is reflected in the Internal
Controls and Risk Management and Principal Risks and
Uncertainties sections on pages 14 and 15. Particular attention
was also given to reviewing controls and policies with respect to
cyber security, ESG, the continuing impact of geopolitical and
macroeconomic events on the Company and the investment
portfolio. The business continuity practices of the Company’s
TPPs were also reviewed.
Other activities undertaken by the Committee follow:
The audit programme and timetable were drawn up and agreed
with the auditor in advance of the financial year end. At this
stage, matters for audit focus were discussed and agreed. These
matters were given particular attention during the audit process
and, among other matters, were reported on by the auditor in
the audit report to the Committee. The report was considered by
the Committee and discussed with the auditor and the Manager
prior to approval and signature of the Company’s Annual Financial
Report. The Committee considered the content of the Company’s
Annual Financial Report, including the accounting policies applied,
and recommended it to the Board.
The Committee reviewed the auditor’s independence, objectivity
and effectiveness, the quality of the services provided to the
Company and, together with the Manager, reviewed the Company’s
compliance with financial reporting and regulatory requirements
as well as risk management pr
ocesses. Representatives of the
Manager’s Compliance and Internal Audit Departments attended
both meetings and would have met privately with the Committee
if it was considered necessary. The depositary also provided a
satisfactory report to the Committee on their monitoring of the
activities of the Company throughout the year.
Representatives of the auditor, PricewaterhouseCoopers CI LLP,
attended the Committee meeting at which the Company’s draft
Annual Financial Report was reviewed and were given the
opportunity to speak to Committee members without the presence
of representatives of the Manager. The Committee is satisfied that
PricewaterhouseCoopers CI LLP has fulfilled its obligations to
shareholders as independent auditor to the Company. The
Committee conducted an audit tender process during the year. As
a result the Committee recommended to the Board the
appointment of KPMG Audit Limited (‘KPMG’) as the Company’s
auditor for the year ending 31 December 2026.
The allocation of management fees and finance costs between
revenue and capital is considered annually by the Committee
which takes account of the long-term split of returns from the
portfolio, yields, the objective of the Company and current market
practice.
The Audit & Risk Committee has also reviewed its own
competence and effectiv
eness in the year and has assessed both
to be satisfactory.
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 41
Accounting Matters and Significant Areas
The Committee’s review of the audit plan included identifying accounting estimates and accounting matters that were expected to
require focus in relation to the Company’s Annual Financial Report.
The accounting estimates and accounting matters that were subject to specific consideration by the Committee follow:
Significant Area How Addressed
The Committee was satisfied that these mat
ters have been satisfactorily addressed through consideration of reports provided by, and
discussed with, the Manager and the auditor. Following a thorough review process, the Audit & Risk Committee advised the Board that
the Company’s 2025 Annual Financial Report, taken as a whole, is fair, balanced and understandable and provides the information
necessary f
or shareholders to assess the Company’s performance and position, business model and strategy.
Actively traded listed investments are valued using exchange prices provided by third party
pricing vendors. Any non-actively traded investments are reviewed relative to appropriate
supporting evidence. The Board reviews detailed portfolio valuations on a regular basis
throughout the year and receives confirmation from the Manager that the pricing basis is
appropriate and in line with relevant accounting standards as adopted by the Company.
Accrued income is calculated by the Manager and each stock line is reviewed to ensure
that capital appreciation is not inappropriately attributed to revenue. The Board reviews
revenue estimates and receives explanations from the Manager for any significant
movements from previous estimates and, if applicable, prior year figures. The audit includes
checks on completeness and accuracy of income.
Income recognition
Accuracy of the portfolio
valuation
Auditor
PricewaterhouseCoopers CI LLP (‘PwC’) has been the auditor of
the Company since 2016. David Clare acted as engagement leader
for the 2025 audit.
The Committee evaluated the independence, performance and
effectiveness of PwC. This included discussions with the Manager
and review of the audit planning, execution and reporting, the
quality of the audit work and the auditor’s independence. The
quality of audit service provision was satisfactory.
It is the Company’s policy normally not to seek substantial
non-audit services from its auditor and no such services were
supplied in 2025 (2024: none). Prior to any engagement for
non-audit services, the Audit & Risk Committee considers whether
the skills and experience of the auditor make them a suitable
supplier of such services and to ensure that there is no threat to
objectivity and independence in the conduct of the audit as a
result.
As highlighted in Company’s annual report for the year ended
31 December 2024, in compliance with auditor rotation
regulations the Committee undertook a competitive audit tender
during the year. As part of the audit tender process, the
Committee invited a number of firms, including PwC, to tender
and set out their proposed terms and offering. These proposals
were considered by the Committee and matters including the
proposed audit approach, sector expertise, resourcing, quality
assurance, results of recent FRC’s Audit Quality Inspections and
proposed fees were considered.
Subsequent to this and following presentations by the audit teams
of the short-listed firms, after due consideration, the Committee
recommended to the Board the appointment of KPMG Audit
Limited. The Board consequently invited KPMG to be the
Company’s auditor for the year ending 31 December 2026. PwC
will resign after signing this year’s Annual Financial Report.
Resolutions appointing KPMG and authorising the Committee to
determine their remuneration will be put to shareholders at the
forthcoming AGM.
Internal Audit
As the Company is an externally managed investment company
with no executive employees and given that the Manager
maintains an internal audit function with which the Committee
regularly meets and from which it receives reports, the Company
does not maintain its own internal audit function.
Yours faithfully,
Heather MacCallum
Audit & Risk Committee Chair
31 March 2026
42
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43
FOR THE YEAR ENDED 31 DECEMBER 2025
Remuneration Responsibilities
All Directors are members of the Nomination and Remuneration
Committee which is chaired by Caroline Dutot. Details of the
Committee’s responsibilities can be found on page 39.
Directors’ Remuneration Policy
The Board’s policy is that Directors’ remuneration should be fair
and reasonable by comparison with fees paid by other investment
companies of similar size and complexity. The remuneration of
the Chairman, Senior Independent Director and the Audit & Risk
Committee Chair is set to reflect the extra responsibilities and
time spent on their respective roles. The policy, which is approved
annually by shareholders, was last approved at the Company’s
2025 Annual General Meeting.
Fees for Directors are determined by the Board within the
aggregate limit stated in the Company’s Articles of Association of
£250,000 per annum.
Directors do not have service contracts. Directors are appointed
under letters of appointment, copies of which are available for
inspection at the registered office of the Company and on the
Manager’s website. The same fees will apply to both current and
new Directors. Directors are entitled to be reimbursed for any
reasonable expenses properly incurred by them in connection
with the performance of their duties and attendance at board and
general meetings and committees. Directors are not eligible for
bonuses, pension benefits, share options or other incentives or
benefits. There are no agreements between the Company and its
Directors concerning compensation for loss of office.
The Company’s Articles also provide that additional discretionary
payments can be made for services which in the opinion of the
Directors are outside the scope of the ordinary duties of a
Director.
The Company has no employees and consequently has no policy
on the remuneration of employees.
The Board will consider, where raised, shareholders’ views on
Directors’ remuneration.
Directors’ Fee Rates
As reported in last year’s Directors’ Remuneration Report
directors’ fees were increased from 1 January 2025 and the
following rates applied: Chairman £46,000; Chair of the Audit &
Risk Committee £39,000; and other Directors £32,000. The
Senior Independent Director received a fee of £1,000 in addition
to their base fee.
The Nomination and Remuneration Committee further reviewed
the level of fees at the end of the financial year to ensure that
they were fair and reasonable compared to those of similar
investment companies. The review also considered the increasing
regulatory requirements (including those specific to the Channel
Islands) and time commitments for Directors. As a result of this
review, and in accordance with the Directors’ Remuneration
Policy, the Nomination and Remuneration Committee determined
that directors’ fees will be increased with effect from 1 January
2026 by an average of circa 13.5%.
From 1 January 2026 Directors’ fees will be paid at the following
rates: Chairman £50,000; Chair of the Audit & Risk Committee
£44,000; and other Directors £37,000. As noted above the
Senior Independent Director will receive a fee of £1,500 in
addition to their base fee. The total fees to be paid to the
Directors during 2026 will remain within the current limit
prescribed by the Company’s Articles of Association.
Chairman’s Annual Statement on
Directors’ Remuneration
For the year to 31 December 2025, the Directors were paid the
fee rates in the table below. No additional discretionary payments
were made in the current year (2024: nil).
Annual Report on Directors’ Remuneration
Directors’ Remuneration for the Year
The Directors who served during the year received the following emoluments, all of which were in the form of fees:
2025 2024
£ £
Tim Scholefield — Chairman 46,000 45,000
Heather MacCallum — Senior Independent Director & Chair of the Audit & Risk Committee 40,000 39,000
Caroline Dutot – Chair of the Nomination & Remuneration Committee 32,000 31,000
Tom Quigley
(1)
14,330 31,000
Christine Johnson – Chair of the Management Engagement Committee 32,000 31,000
Arun Kumar Sarwal
(2)
17,753 n/a
Total 182,083 177,000
(1) Retired as a Director on 11 June 2025.
(2) Appointed as a Director 11 June 2025.
Directors’ Remuneration
Report
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 43
Directors’ Interests
The beneficial interests of the Directors in the ordinary share capital of the Company are shown below:
31 December 31 December
2025 2024
Shares Held Shares Held
Tim Scholefield (Chairman) 32,000 32,000
Heather MacCallum 8,000 8,000
Caroline Dutot
(1)(4)
77,150 –
Tom Quigley
(2)
– 15,000
Christine Johnson 2,547 2,539
Arun Kumar Sarwal
(3)(4)
24,238 –
(1) Includes 57,140 shares held by a person closely associated with Caroline Dutot.
(2) Retired as a Director on 11 June 2025.
(3) Appointed as a Director on 11 June 2025.
(4) Subsequent to the year end, Caroline Dutot and Arun Kumar Sarwal acquired 101 and 424 shares respectively via a dividend re-in
vestment plan.
Save as aforesaid, no Director had any other interests, beneficial or otherwise, in the shares of the Company during the year. No further
changes to these holdings have been notified up to the date of this report.
No connected person interests have been notified.
Directors hold shares in the Company at their discretion. Share ownership is encouraged, but no guidelines have been set.
No Director was a party to, or had any interests in, any contract or arrangement with the Company at any time during the period or
at the year end other than in respect of indemnification and insurance as set out below.
Directors’ Indemnification and Insurance
The Company maintains a Directors’ and Officers’ liability insurance policy.
The Company has entered into a Deed of Indemnity with each of the Directors by which, to the extent permitted by law and the
Company’s Articles of Association, the Company will indemnify them against liabilities incurred in connection with their office as Dir
ectors
of the Company and fund reasonable expenditure incurred by them in defending proceedings brought against them in connection with
their position as Directors of the Company. The indemnity does not apply to the extent that the costs are recoverable under the
Directors’ and Officers’ liability insurance policy maintained by the Company or from any other insurance maintained by the Direct
or.
44
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45
The Directors are responsible for preparing the Company’s Annual
Financial Report in accordance with applicable laws and
regulations.
The Companies (Jersey) Law 1991 requires the Directors to
prepare financial statements for each financial period. Under that
law the Directors have elected to prepare the financial statements
in accordance with International Financial Reporting Accounting
Standards issued by the International Financial Reporting
Standards as adopted by the European Union (‘IFRS’ Accounting
Standards as adopted by the EU). The financial statements are
required by law to give a true and fair view of the state of affairs
of the Company and of the profit or loss of the Company for that
period.
International Accounting Standard 1 requires that financial
statements present fairly for each financial year the Company’s
financial position, financial performance and cash flows. This
requires the faithful representation of the effects of transactions,
other events and conditions in accordance with the definitions
and recognition criteria for assets, liabilities, income and expenses
set out in the International Accounting Standards Board’s
‘Framework for the preparation and presentation of financial
statements’. In virtually all circumstances, a fair presentation will
be achieved by compliance with all applicable IFRS Accounting
Standards as adopted by the EU.
In preparing these financial statements, the Directors are required
to:
– properly select and apply accounting policies and then
apply them consistently;
– present information, including accounting policies, in a
manner that provides relevant, reliable, comparable and
understandable information;
– provide additional disclosures when compliance with
specific requirements in IFRS Accounting Standards are
insufficient to enable users to understand the impact of
particular transactions, other events and conditions on the
entity’s financial position and financial performance; and
– make an assessment o
f the Company’s ability to continue
as a 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 (as explained in detail on
page 56) 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.
The Directors are responsible for keeping proper accounting
records that disclose with reasonable accuracy at any time the
financial position of the Company and which enable them to
ensure that the accounts comply with the Companies (Jersey)
Law 1991. They are also responsible for safeguarding the assets
of the Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Under applicable law and regulations, the Directors are also
responsible for preparing a Corporate Governance Statement and
a Directors’ Report that comply with that law and those
regulations.
The Directors of the Company, who are listed on page 33, each
confirm to the best of their knowledge that:
– the financial statements, which have been prepared in
accordance with applicable accounting standards, give a
true and fair view of the financial position and profit or loss
of the Company;
– this Annual Financial Report includes a fair review of the
development and performance of the business and the
position of the Company, together with a description of the
principal risks and uncertainties that it faces;
– this Annual Financial Report, taken as a whole, is fair,
balanced and understandable and provides the information
necessary f
or shareholders to assess the Company’s
position and performance, business model and strategy;
and
– there is no relevant audit information of which the
Company’s auditor is unaware, and each Director has taken
steps that they ought to have taken as a Director to make
themselves aware of any relevant audit information and to
establish that the Company’s auditor is aware of that
information.
Signed on behalf of the Board of Directors
Heather MacCallum
Audit & Risk Committee Chair
31 March 2026
Directors’ Responsibilities
Statement
a. The directors have delegated responsibility for the maintenance and integrity of the Invesco Bond Income Plus Limited website to the Manager; the work carried out by the auditors
does not involve consideration of these matters and, accordingly, the auditor accept no responsibility for any changes that may have occurred to the financial statements since they
were initially presented on the website.
b. Legislation in Jersey governing the preparation and dissemination of financial statements may differ from legislation in other juris
dictions.
Bond Income Plus AR 2 Governance p32-45.qxp 31/03/2026 14:23 Page 45
46
Invesco Bond Income Plus Limited
3
Financial
Independent Auditor’s Report ...................................................47
Statement of Comprehensive Income .......................................52
Statement of Changes in Equity ...............................................53
Balance Sheet ..........................................................................54
Statement of Cash Flows ..........................................................55
Notes to the Financial Statements ............................................56
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 46
47
Report on the audit of the financial statements
Our opinion
In our opinion, the financial statements give a true and fair view of the financial position of Invesco Bond Income Plus Limited (the
“company”) as at 31 December 2025, and of its financial performance and its cash flows for the year then ended in accordance with
International Financial Reporting Standards as adopted by the European Union and have been properly prepared in accordance with
the requirements of the Companies (Jersey) Law 1991.
What we have audited
The company’s financial statements comprise:
• the balance sheet as at 31 December 2025;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (“ISAs”). Our responsibilities under those standards
are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements
of the company, which includes those required by the Crown Dependencies’ Audit Rules and Guidance. We have also fulfilled our other
ethical responsibilities in accordance with these requirements.
Our audit approach
The scope of our audit
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements.
In particular, we considered where the directors made subjective judgement
s; for example, in respect of significant accounting estimates
that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addr
essed
the risk of management override of internal controls, including among other matters, consideration of whether there was evidence o
f
bias that represented a risk of material misstatement due to fraud.
Overview
Audit scope
• The company is a closed-end investment company, incorporated and based in Jersey, with ordinary shares listed on the Main
Market of the London Stock Exchange.
• We conducted our audit of the financial statements using information provided by JTC Fund Solutions (Jersey) Limited (the
“administrator”) and Invesco Fund Managers Limited (the “manager”).
Our audit work was performed in Jersey. We tailored the scope of our risk-based audit considering the types of investments held
by the company, the accounting pr
ocesses and controls, and the industry in which the company operates.
Key audit matters
• Valuation and ownership of investments.
• Income recognition.
Materiality
• Overall materiality: £8,206,000 (2024: £3,457,000) based on 2% (2024: 1%) of net assets.
• Performance materiality: £6,154,000 (2024: £2,593,000).
Independent Auditor’s Report
To the Members of
InvescoBondIncome Plus Limited
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 47
Key audit matters
Key audit matters are those matters that, in the auditor’s professional judgement, were of most significance in the audit of the financial
statements of the current period and include the most signific
ant assessed risks of material misstatement (whether or not due to fraud)
identified by the auditor, including those which had the greatest effect on: the overall audit strategy; the allocation of resour
ces in the
audit; and directing the efforts of the engagement team. These matters, and any comments we make on the results of our procedures
thereon, were addressed in the c
ontext of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
This is not a complete list of all risks identified by our audit.
Key audit matter How our audit addressed the key audit matter
How we tailored the audit scope
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial statements
as a whole, taking into account the structur
e of the company, the accounting processes and controls, the industry in which the company
operates, and we considered the risk of climate change and the potential impact thereof on our audit approach.
Materiality
The scope of our audit was influenced by our application of materiality. We set certain quantitative thresholds for materiality. These,
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing and extent of our audit
procedures on the individual financial statement line items and disclosures and in evaluating the effect of misstatements, both individually
and in aggregate on the financial statements as a whole.
We obtained an understanding of, and evaluated, the design and
implementation of key controls relevant to the valuation and
ownership.
We used independent third-party pricing sources to recalculate the
valuation of all level 1 and level 2 positions within the bond and
equity portfolio and compared it to the valuation performed by
management.
For the bond and equity portfolio, we obtained an independent
third-party confirmation from the company’s custodian and
compared it to the company’s investment ownership records.
We have no material matters to report.
Key audit matter
Valuation and ownership of investments
Refer to note 2 (Principal Accounting Policies), note 11
(Investments Held at Fair Value Through Profit and Loss), and
note 20 (Classification Under Fair Value Hierarchy) to the financial
statements.
The valuation and ownership of investments represent the
principal element of the net asset value of the company as
disclosed on the balance sheet in the financial statements. The
valuation of investments drives several key performance
indicators, such as net asset value, which is of significant interest
to investors. 99% of the bond and equity portfolio by value are
classified as either level 1 or level 2 in the fair value hierarchy.
The nature of level 1 and level 2 investment valuations is not
complex as they are based primarily on quoted prices from
independent pricing sources. However, the magnitude of the
amounts involved means that there is potential for material
misstatement.
If the recorded investments do not accurately reflect the
company’s actual holdings, this discrepancy could significantly
affect the financial statements.
We assessed the ac
counting policy for income recognition for
compliance with applicable accounting st
andards and assessed
whether income had been accounted for in accordance with the
stated accounting policy.
For a sample of bonds, we compared the interest rates from the
accounting records to independent sources and recalculated the
income recognised by the company; and recalculated interest
accrued at the year-end.
Using data analytic techniques, we matched revenue receipts from
the general ledger system to receipts in the bank statement and
investigated a sample of unmatched items.
To address the risk of incomplete income recognition, our sample
included interest received and accrued from bonds held at
31 December 2025, as well as bonds that had been purchased
and sold during the year.
We have no material matters to report.
Income recognition
Refer to note 2 (Principal Accounting Policies) and note 4 (Income)
to the financial statements.
Income is earned primarily through bond interest income, with an
immaterial amount of dividend income recognised in the year. The
calculation and recognition of income receipts and accrued
income is not considered to be complex.
We identified the accuracy, occurrence and completeness of bond
interest income to be an area of focus, because the incomplete
or inaccurate recognition of income could have a material impact
on the company’s financial performance for the year.
48
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49
Based on our professional judgement, we determined materiality for the financial statements as a whole as follows:
We use performance materiality to reduce to an appropriately low level the probability that the aggregate of uncorrected and unde
tected
misstatements exceeds overall materiality. Specifically, we use performance materiality in determining the scope of our audit and the
nature and extent of our testing of ac
count balances, classes of transactions and disclosures, for example in determining sample sizes.
Our performance materiality was 75% (2024: 75%) of overall materiality, amounting to £6,154,000 (2024: £2,593,000) for the
company financial statements.
In determining the performance materiality, we considered a number of factor
s – the history of misstatements, risk assessment and
aggregation risk and the effectiveness of controls - and concluded that an amount at the upper end of our normal range was appropriat
e.
We agreed with the Audit & Risk Committee that we would report to them misstatements identified during our audit above £410,000
(2024: £173,000) as well as misstatements below that amount that, in our view, warranted reporting for qualitative reasons.
Reporting on other information
The other information comprises all the information included in the Annual Financial Report (the “Annual Report”) but does not include
the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the
financial statements does not cover the other information and we do not e
xpress any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, c
onsider
whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilitie
s.
Responsibilities for the financial statements and the audit
Responsibilities of the directors for the financial statements
As explained more fully in the Directors’ Responsibilities Statement, the directors are responsible for the preparation of the financial
statements that give a true and fair view in accordance with International Financial Reporting Standards as adopted by the European
Union, the requirements of Jersey law and for such internal control as the directors determine is necessary to enable the preparation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are r
esponsible for assessing the company’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstat
ement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they c
ould
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Our audit testing might include testing complete populations of certain transactions and balances, possibly using data auditing
techniques. However, it typically involves selecting a limited number of items for testing, rather than testing complete populations. W
e
will often seek to target particular items for testing based on their size or risk characteristics. In other cases, we will use audit sampling
to enable us to draw a conclusion about the population from which the sample is selected.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risk
s of material misstatement of the financial statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our
opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fr
aud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by the directors.
Overall materiality £8,206,000 (2024: £3,457,000).
How we determined it 2% (2024: 1%) of net assets.
Rationale for benchmark applied We believe that net assets is the most appropriate benchmark because this is the key
metric of interest to investors. It is also a generally accepted measure used for companies in
this industry
.
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 49
• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence
obtained, whether a material uncertainty exists related to event
s or conditions that may cast significant doubt on the company’s
ability to continue as a going concern over a period of at least 12 months from the date of approval of the financial statements. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosur
es
in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to
continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencie
s in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, w
e
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.
Use of this report
This report, including the opinions, has been prepared for and only for the members as a body in accordance with Article 113A of the
Companies (Jersey) Law 1991 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for an
y
other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by
our prior consent in writing.
Report on other legal and regulatory requirements
Company Law exception reporting
Under the Companies (Jersey) Law 1991 we are required to report to you if, in our opinion:
• we have not received all the information and explanations we require for our audit;
• proper accounting records have not been kept; or
• the financial statements are not in agr
eement with the accounting records.
We have no exceptions to report arising from this responsibility.
Corporate governance statement
The UK Listing Rules require us to review the directors’ statements in relation to going concern, longer-term viability and that part of
the corporate governance statement relating to the company’s compliance with the provisions of the UK Corporate Governance Code
specified for our review. Our additional responsibilities with respect to the corporate governance statement as other information ar
e
described in the Reporting on other information section of this report.
The company has reported compliance against the AIC Corporate Governance Code (the “Code”) which has been endorsed by the UK
Financial Reporting Council as being consistent with the UK Corporate Go
vernance Code for the purposes of meeting the company’s
obligations, as an investment company, under the UK Listing Rules of the FCA.
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate governanc
e
statement, included within the Business Review and Directors’ Responsibilities Statement is materially consistent with the financial
statements and our knowledge obtained during the audit, and we have nothing material to add or draw attention to in relation to:
• The directors’ confirmation that they have carried out a r
obust assessment of the emerging and principal risks;
• The disclosures in the Annual Report that describe those principal risks, what procedures are in place to identify emerging risks
and an explanation of how these are being managed or mitigated;
• The directors’ statement in the financial statements about whether they considered it appropriate to adopt the going concern basis
of accounting in preparing them, and their identification of any material unc
ertainties to the company’s ability to continue to do so
over a period of at least 12 months from the date of approval of the financial statements;
• The directors’ explanation as to their assessment o
f the company’s prospects, the period this assessment covers and why the period
is appropriate; and
• The directors’ statement as to whether they have a reasonable expectation that the company will be able to continue in operation
and meet its liabilities as the
y fall due over the period of its assessment, including any related disclosures drawing attention to any
necessary qualifications or assumptions.
Our review of the directors’ statement regarding the longer-term viability of the company was substantially less in scope than an audit
and only consisted of making inquiries and considering the directors’ process supporting their statements; checking that the stat
ements
are in alignment with the relevant provisions of the Code; and considering whether the statement is consistent with the financial
statements and our knowledge and understanding of the company and its environment obtained in the course of the audit.
50
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51
In addition, based on the work undertaken as part of our audit, we have concluded that each of the following elements of the corporate
governance statement is materially consistent with the financial statements and our knowledge obtained during the audit:
• The directors’ statement that they consider the Annual Report, taken as a whole, is fair, balanced and understandable, and provide
s
the information necessary for the member
s to assess the company’s position, performance, business model and strategy;
• The section of the Annual Report that describes the review of effectiveness of risk management and internal control systems; and
• The section of the Annual Report describing the work of the Audit & Risk Committee.
We have nothing to report in respect of our responsibility to report when the directors’ statement relating to the company’s complianc
e
with the Code does not properly disclose a departure from a relevant provision of the Code specified under the UK Listing Rules fo
r
review by the auditors.
David Clare
For and on behalf of PricewaterhouseCoopers CI LLP
Chartered Accountants and
Recognised Auditor
Jersey, Channel Islands
31 March 2026
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 51
Year ended Year ended
31 December 2025 31 December 2024
Revenue Capital Total Revenue Capital Total
Notes £’000 £’000 £’000 £’000 £’000 £’000
Net gains on investments held at fair value
through profit or loss 11 – 3,548 3,548 – 2,093 2,093
Net gains on derivative instruments –
forward currency contracts and CDS 13 – 3,273 3,273 – 943 943
Exchange differences – (2,717) (2,717) – 1,965 1,965
Income 4 30,853 – 30,853 26,370 – 26,370
Investment management fee 5 (1,230) (1,230) (2,460) (1,090) (1,090) (2,180)
Other expenses 6 (815) (14) (829) (856) (40) (896)
Profit before finance costs and taxation 28,808 2,860 31,668 24,424 3,871 28,295
Finance costs 7 (534) (534) (1,068) (826) (826) (1,652)
Profit before taxation 28,274 2,326 30,600 23,598 3,045 26,643
Tax on ordinary activities 8 (89) – (89) (61) – (61)
Profit after taxation 28,185 2,326 30,511 23,537 3,045 26,582
Earnings per ordinary share 9 13.07p 1.08p 14.15p 12.08p 1.57p 13.65p
The total columns of this statement represent the Company’s statement of comprehensive income, prepared in accordance with
International Financial Reporting Standards (‘IFRS’) Accounting Standards adopted by the European Union. The profit after taxation is
the total comprehensive income. 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 year.
Statement of
Comprehensive Income
The accompanying accounting policies and notes are an integral part of these financial statements.
52
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53
Stated Capital Revenue
Capital Reserve Reserve Total
Notes £’000 £’000 £’000 £’000
At 31 December 2023 316,793 (22,018) 9,854 304,629
Profit after taxation – 3,045 23,537 26,582
Dividends paid 10 (514) – (21,660) (22,174)
Net proceeds from issue of new shares 16 36,762 – – 36,762
At 31 December 2024 353,041 (18,973) 11,731 345,799
Profit after taxation – 2,326 28,185 30,511
Dividends paid 10 (642) – (25,491) (26,133)
Net proceeds from issue of new shares 16 60,098 – – 60,098
At 31 December 2025 412,497 (16,647) 14,425 410,275
Statement of
Changes in Equity
The accompanying accounting policies and notes are an integral part of these financial statements.
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 53
At At
31 December 31 December
2025 2024
Notes £’000 £’000
Non-current assets
Investments held at fair value through profit or loss 11 420,214 376,963
Current assets
Other receivables 12 13,783 9,939
Derivative financial instruments – receivable 13 1,729 415
Cash and cash equivalents 21,232 8,153
36,744 18,507
Current liabilities
Other payables 14 (6,198) (1,000)
Derivative financial instruments – payable 13 (24) (2,321)
Securities sold under agreements to repurchase 15 (38,018) (45,127)
(44,240) (48,448)
Net current liabilities (7,496) (29,941)
Total assets less current liabilities 412,718 347,022
Non-current liabilities
Derivatives held at fair value through profit or loss 13 (2,443) (1,223)
Net assets 410,275 345,799
Capital and reserves
Stated capital 16 412,497 353,041
Capital reserve 17 (16,647) (18,973)
Revenue reserve 17 14,425 11,731
Total shareholders’ funds 410,275 345,799
Net asset value per ordinary share 18 172.87p 170.87p
The financial statements were approved and authorised for issue by the Board of Directors on 31 March 2026.
Signed on behalf of the Board of Directors
Heather MacCallum
Audit & Risk Committee Chair
Balance Sheet
The accompanying accounting policies and notes are an integral part of these financial statements.
54
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55
Year ended Year ended
31 December 31 December
2025 2024
£’000 £’000
Cash flow from operating activities
Profit before finance costs and taxation 31,668 28,295
Tax on overseas income (89) (61)
Adjustment for:
Purchases of investments (164,225) (139,225)
Sales of investments 129,737 99,926
(34,488) (39,299)
Decrease from securities sold under agreements to repurchase (7,109) (2,941)
Net gains through profit or loss on investments held at fair value (3,548) (2,093)
Net movement from derivative instruments – forward currency contracts and CDS (2,391) 4,519
Increase in other receivables (3,446) (1,336)
Increase in other payables 80 101
Effect of foreign exchange rate changes 545 135
Net cash outflow from operating activities (18,778) (12,680)
Cash flow from financing activities
Finance cost paid (1,167) (1,669)
Net proceeds from issue of new shares - note 16 60,103 36,856
Dividends paid – note 10 (26,133) (22,174)
Cost of shares issued – note 16 (401) (183)
Net cash inflow from financing activities 32,402 12,830
Net increase in cash and cash equivalents 13,624 150
Cash and cash equivalents at start of the year 8,153 8,138
Effect of foreign exchange rate changes (545) (135)
Cash and cash equivalents at the end of the year 21,232 8,153
Reconciliation of cash and cash equivalents to the Balance Sheet is as follows:
Cash held at custodian 5,114 7,903
Invesco Liquidity Funds plc – Sterling 16,118 250
Cash and cash equivalents 21,232 8,153
Cash flow from operating activities includes:
Dividends received 642 627
Interest received 29,073 24,984
Reconciliation of net debt
At At
1 January Cash Non-cash 31 December
2025 flows movement 2025
£’000 £’000 £’000 £’000
Cash and cash equivalents 8,153 13,624 (545) 21,232
Securities sold under agreements to repurchase (45,127) 7,109 – (38,018)
Total (36,974) 20,733 (545) (16,786)
Statement of Cash
Flows
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 55
1. Principal Activity
The Company is a closed-end investment company incorporated in Jersey and operates under the Companies (Jersey) Law 1991. The
principal activity of the Company is investment in a diversified portfolio of high-yielding fixed-interest securities as set out in the
Company’s Investment Objective and Policy.
2. Principal Accounting Policies
The principal accounting policies describe the Company’s approach to recognising and measuring transactions during the year
and the position of the Company at the year end.
The principal accounting policies adopted in the preparation of these financial statements are set out below. These policies hav
e been
consistently applied during the current year and preceding year, unless otherwis
e stated. The financial statements have been prepared
on a going concern basis as noted below.
(a) Basis of Preparation
(i) Accounting Standards Applied
The financial statements have been prepared on a historical cost basis, except for the measurement at fair value of
investments and derivatives, and in accordance with the applicable International Financial Reporting Standards as adopted
by the European Union (‘IFRS’ Accounting Standards as adopted by the EU). The standards are those endorsed by the
European Union and effective at the date the financial statements were approved by the Board.
Where presentational guidance set out in the Statement of Recommended Practice (SORP) ‘Financial Statements of
Investment Trust Companies and Venture Capital Trusts’, updated by the Association of Investment Companies in July
2022, is consistent with the requirements of IFRS Accounting Standards as adopted by the EU, the Directors have prepared
the financial statements on a basis compliant with the recommendations of the SORP. The supplementary information
which analyses the statement of comprehensive income between items of a revenue and a capital nature is presented in
accordance with the SORP.
(ii) Going Concern
As explained on page 16, the Company has an Annual Continuation Vote and the Directors believe shareholders will vote
for the Company to continue. Accordingly, the Directors have determined that the financial statements should and have
been prepared on a going concern basis, which does not include any adjustments that might arise from cessation of the
Company. The Articles of Association of the Company require that unless an ordinary resolution is passed at or before the
Annual General Meeting (‘AGM’) each year releasing the Directors from the obligation to do so, the Directors shall convene
a general meeting within six months of the AGM at which a special resolution would be proposed to wind up the Company.
The directors plan on presenting an ordinary resolution at the forthcoming AGM for which a 50% majority is needed for
a special resolution regarding continuance not to be held.
If a special resolution was held regarding a continuation vote a 75% majority of the shareholders need to vote for the
Company not to continue.
Last year nearly 100% of the votes registered at the AGM were in favour of releasing the obligation to hold a continuation
vote.
Based upon the current financial performance and financial position of the Company including the net current liability
position at the balance sheet date along with the AGM vote outcome last year and ongoing dialogue with investors, the
Directors do not have any concerns regarding the outcome of the forthcoming ordinary resolution and hence do not
consider there to be a material uncertainty over going concern.
If a continuation vote was held and was unsuc
cessful, the basis of preparation would be switched at that date to a basis
other than going concern and the NAV impacting adjustments would not be material as the majority of investments are
Level 2, based on observable market prices and investments are classified as held at fair value through profit or loss.
(iii) Adoption of New and Revised Standards
There were no new nor revised standards and interpretations that became effective during the year having a significant
impact on the amounts reported in these financial statements.
During the year the following standards were issued but were not effective and the Company has chosen not to early
adopt:
• IFRS 18, ‘Presentation and Disclosure in Financial Statements’ – effective 1 January 2027 (early adoption is
permitted).
• Amendments to the Classification and Measurement of Financial Instruments – Amendments to IFRS 9 and IFRS 7
– effective 1 January 2026.
Notes to the
Financial Statements
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57
(iv) Critical Accounting Estimates and Judgements
The preparation of the financial statements may require the Directors to make estimations where uncertainty exists. It
also requires the Directors to exercise judgement in the process of applying the accounting policies. The Directors, having
taken into account the factors in note 2a(ii), judge it appropriate t
o continue to use the going concern basis to prepare the
financial statements given the Annual Continuation Vote.
The area requiring the most significant judgement and estimation in the preparation of the financial statements is:
accounting for the value of Level 3 investments. Further details can be found in note 20 on pages 70 and 71.
(b) Foreign Currency
(i) Functional and Presentation Currency
The financial statements are presented in sterling, which is the Company’s functional and presentation currency and the
currency in which the Company’s stated capital and expenses are denominated, as well as a certain proportion of its
income, assets and liabilities.
(ii) Transactions and Balances
Transactions in foreign currency, whether of a revenue or capital nature, are translated to sterling at the rate of exchange
ruling on the date of such transactions. Foreign currency assets and liabilities are translated to sterling at the rates of
exchange ruling at the balance sheet date. Foreign exchange gains and losses relating t
o non investments are presented
in the statement of comprehensive income within ‘exchange diff
erences’. Foreign exchange gains and losses relating to
the financial assets and liabilities carried at fair value through profit or loss are presented in the statement of comprehensive
income within ’net gains on investments held at fair value through pr
ofit or loss’. All profits and losses, whether realised
or unrealised, are recognised in the statement of comprehensive income and are taken to capital reserve or revenue
reserve, depending on whether the gain or loss is capital or revenue in nature.
(c) Financial Instruments
(i) Recognition of Financial Assets and Financial Liabilities
Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions
of the instrument. These are offset if the Company has a legally enforceable right to set off the recognised amounts and
interests and intends to settle on a net basis.
(ii) Derecognition of Financial Assets
Financial assets are derecognised when the contractual rights to the cash flows from the asset expire, or it transfers the
right to receive the contractual cash flows on the financial asset in a transaction in which substantially all the risks and
rewards of ownership of the financial asset are transferred. Any interest in the transferred financial asset that is created
or retained by the Company is recognised as an asset.
(iii) Derecognition of Financial Liabilities
Financial liabilities are derecognised when the Company’s obligations are discharged, cancelled or expired.
(iv) Trade Date Accounting
Purchases and sales of financial assets are recognised on trade date, being the date on which the Company commits to
purchase or sell the assets.
(v) Classification of Financial Assets and Financial Liabilities
Financial assets
Investments are classified as held at fair value through profit or loss as the investments are managed and their performance
evaluated on a fair value basis in accordance with the Company’s documented investment strategy and this is also the
basis on which information about investments is provided internally to the Board.
Financial assets held at fair value through profit or loss are initially recognised at fair value, which is taken to be their cost
,
with transaction costs expensed in the statement of comprehensive income, and are subsequently valued at fair value.
Changes in fair value including the related foreign exchange gains and losses ar
e recognised in the statement of
comprehensive income under net gains and losses on in
vestments.
For investments that are actively traded in organised financial markets, fair value is determined by reference to stock
exchange quoted bid prices at the balance sheet date. For investments that are not actively traded or where active stock
exchange quoted bid prices are not available, fair value is determined by reference to a variety of valuation techniques
including broker quotes and price modelling.
Financial Liabilities
Financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs and are subsequently
measured at amortised cost using the effective interest method, where applicable.
(d) Derivatives and Hedging
Derivative instruments are valued at fair value in the balance sheet. Hedge accounting has not been adopted.
Forward currency contracts ent
ered into for hedging purposes are valued at the appropriate forward exchange rate ruling at the
balance sheet date and any profits and losses ar
e recognised in the statement of comprehensive income and taken to capital.
The treatment of the earnings
from credit default swaps depends upon the nature of the transaction. Both motives and
circumstances are used to determine whether earnings should be treated as capital or revenue. Given that the primary rationale
for holding credit default swaps is capital prot
ection, any gains/(losses) and premiums paid are reflected within net gain/(losses)
on derivative instruments and taken to capital. Prior to 1 January 2025 the expense element was reflected within revenue in
other expenses within the statement of comprehensive income.
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 57
2. Principal Accounting Policies (continued)
(e) Cash and Cash Equivalents
Cash and cash equivalents may comprise cash (including short term deposits which are readily convertible to a known amount
of cash and are subject to an insignificant risk of change in value) as well as cash equivalents, including money market funds.
(f) Securities Sold Under Agreements to Repurchase (‘repo financing’)
The Company participates in repo financing arrangements in connection with its investment portfolio. Under these arrangements,
the Company sells fixed interest securities but is contractually obliged to repurchase them at a fixed price on a fixed date.
Securities which are the subject of repo financing arrangements are included in investments in the balance sheet at their fair
value and the associated liability is recognised at amortised cost, being the capital amounts owing under the repo financing
arrangements. The difference between sale and repurchase prices for such transactions is reflected in the statement of
comprehensive income over the lives of the transactions, within finance costs which is allocated 50% to capital and 50% to
revenue (2024: 50% capital; 50% revenue). This accounting has been adopted because the repurchase price results in a lender’s
return for the transferee as the Company has retained substantially all the risks and rewards of ownership of the asset.
(g) Income Recognition
All income is recognised in the statement of comprehensive income. Interest income arising from fixed income securities classified
as fair value through profit or loss is recognised in the statement of comprehensive income based on the contractual interest
rate. Interest income is recognised as it accrues, using the coupon rate specified in the bond terms. Dividend income arises from
equity investments held and is recognised on the date investments are marked ‘ex-dividend’. Deposit interest is taken into account
on an accruals basis.
Special dividends are considered individually to ascertain the reason behind the payment. This will determine whether they are
treated as income or capital in the statement of comprehensive income.
(h) Expenses and Finance Costs
All expenses are accounted for on an accruals basis and are recognised in the statement of comprehensive income. Investment
management fees and finance costs are allocated 50% to capital and 50% to revenue (2024: 50% capital; 50% revenue) in
accordance with the Board’s expected long-term split of earnings, in the form of capital gains and income respectively, from the
investment portfolio. Except for custodian dealing costs, all other expenses are charged through revenue.
(i) Taxation
Overseas interest and dividends are shown gross of withholding tax and the corresponding irrecoverable tax is shown as a charge
in the statement of comprehensive income.
(j) Dividends payable to shareholders
Interim dividends are recognised in the period in which they are paid and are dealt with in the statement of changes in equity.
(k) Stated Capital
Stated Capital represents the total value of shares in issue, including net issue proceeds resulting from share issuances and if
appropriate, payments as a result of share buybacks. Stated Capital can be used for distributions under the Companies (Jersey)
Law 1991.
Because the criteria in paragraphs 16C and 16D of IAS 32 Financial Instruments: Presentation, have been met, the stated capital
of the Company is classified as equity even though there is a continuation vote.
3. Segmental Reporting
No segmental reporting is provided as the Directors are of the opinion that the Company is engaged in a single segment of
business o
f investing in debt and, to a significantly lesser extent, equity securities.
4. Income
This note shows the income generated from the portfolio (investment assets) of the Company and income received from
any other source.
2025 2024
£’000 £’000
Income from investments
UK investment income – interest 14,122 12,412
UK dividends 367 436
Overseas investment income – interest 15,806 13,067
Overseas dividends 252 182
30,547 26,097
Other income
Deposit interest 199 212
Other income 107 61
306 273
Total income 30,853 26,370
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59
5. Investment Management Fee
This note shows the fees paid to the Manager, which are calculated quarterly on the basis of the value of the assets being
managed.
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Investment management fee 1,230 1,230 2,460 1,090 1,090 2,180
Details of the investment management and secretarial agreement are given on page 35 in the Directors’ Report.
At 31 December 2025, £667,000 (2024: £562,000) was accrued in respect of the investment management fee.
The management fee is payable quarterly in arrears and is equal to 0.1625% of the value of the Company’s total assets under
management less current liabilities at the end of the relevant quarter.
6. Other Expenses
The other expenses of the Company are presented below; those paid to the Directors and the auditor are separately
identified.
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Directors’ remuneration
(i)
182 – 182 177 – 177
Auditors’ fees
(ii)
:
– for audit of the Company’s
annual financial statements 70 – 70 57 – 57
Other expenses
(iii)
563 14 577 622 40 662
815 14 829 856 40 896
(i) The maximum Directors’ fees authorised by the Articles of Association are £250,000 (2024: £250,000) per annum. The
Directors’ Remuneration Report on page 43, provides further information on Directors’ fees.
(ii) Auditor’s fees include out of pocket expenses. There was a £6,500 additional fee in relation to Level 3 investments incurred
in respect of the year to 31 December 2024 audit, paid in the year to 31 December 2025.
(iii) Other expenses include:
• custodian transaction charges of £3,000 (2024: £4,000). These are charged to capital.
• legal and administrative fees of £11,000 related to the adoption of updated Articles of Association (2024: £36,000
share placing). These were charged to capital.
• amounts due to JTC Fund Solutions (Jersey) Limited who acted as Administrator and Company Secretary to the
Company under an agreement starting from 10 December 2019. The fee paid for company secretarial and
administration services in the current year was £143,000 (2024: £139,000).
• A fee of £103,000 was paid to the Manager for marketing services on behalf of the Company (2024: £103,000).
• A premium of £38,000 was paid from revenue, during the year to 31 December 2024, on credit default swaps.
From 1 January 2025 onwards premiums paid are reflected in capital within net gains on derivative instruments.
Further details are shown in note 2(d) and note 13.
7. Finance Costs
Finance costs arise on any borrowing the Company has and comprises of interest due under repo financing, being the
Company's preferred method of borrowing.
2025 2024
Revenue Capital Total Revenue Capital Total
£’000 £’000 £’000 £’000 £’000 £’000
Interest due under repo financing 534 534 1,068 826 826 1,652
534 534 1,068 826 826 1,652
The Company has repo financing arrangements in place which were used during the year. For repos that are denominated in
currencies where the interest rate is negative, the interest is receivable and has been netted against repo interest payable within
finance costs, as they relate to borrowing costs.
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8 Taxation
As a Jersey investment company no tax is payable on capital gains and, as the Company principally invests in assets
which do not result in a revenue tax, the only overseas tax arises on assets domiciled in countries with which Jersey has
no double-taxation treaty.
2025 2024
£’000 £’000
Overseas taxation 89 61
The Company is subject to Jersey income tax at the rate of 0% (2024: 0%). The overseas tax charge consists of irrecoverable
withholding tax suffered.
9. Earnings per Ordinary Share
Earnings per ordinary share is the amount of gain generated for the financial year divided by the weighted average number
of ordinary shares in issue.
The basic revenue, capital and total earnings per ordinary share is based on each of the earnings on ordinary activities after
taxation and on 215,592,679 (2024: 194,765,138) ordinary shares, being the weighted average number of ordinary shares in
issue throughout the year.
10. Dividends on Ordinary Shares
Dividends are usually paid from the income less expenses. Dividends are paid as an amount per ordinary share held.
The fourth interim dividend shown below is based on shares in issue at the record date or, if the record date has not been
reached, on shares in issue on the date the balance sheet is signed. The fourth interim dividend was paid after the balance sheet
date.
2025 2024
Pence £’000 Pence £’000
Dividends paid and recognised in the year:
Fourth interim 3.0625 6,206 2.8750 5,212
First interim 3.0625 6,294 2.8750 5,554
Second interim 3.0625 6,677 2.8750 5,625
Third interim 3.0625 6,956 2.8750 5,783
12.2500 26,133 11.5000 22,174
Dividends paid in respect of the year have been charged to revenue except for £642,000 (2024: £514,000) which was charged
to stated capital. This amount is equivalent to the cumulative income accrued on the new shares issued in the year. When new
shares are issued there is an element of income accrued in the issuance price paid, with proceeds fully taken to capital. As a
result, the accrued income element is then used as part of dividend payments from stated capital. This has the effect of reducing
the amount of revenue used for dividend payments.
2025 2024
Pence £’000 Pence £’000
Dividends payable in respect of the year:
First interim 3.0625 6,294 2.8750 5,554
Second interim 3.0625 6,677 2.8750 5,625
Third interim 3.0625 6,956 2.8750 5,783
Fourth interim 3.0625 7,372 3.0625 6,206
12.2500 27,299 11.6875 23,168
The fourth interim dividend for 2025 was paid on 20 February 2026 to shareholders on the register on 16 January 2026.
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11. Investments Held at Fair Value Through Profit and Loss
The portfolio is principally made up of investments which are listed and traded on regulated stock exchanges. Profits and
losses are either:
• realised, usually arising when investments are sold; or
• unrealised, being the difference from cost of those investments still held at the year end.
(a) Analysis of investment movement during the year
2025 2024
£’000 £’000
Opening book cost 386,556 352,292
Opening investment holding losses (9,593) (16,759)
Opening valuation 376,963 335,533
Movements in year:
Purchases at cost 169,440 139,225
Sales – proceeds (129,737) (99,888)
Net gains on investments held at fair value through profit or loss 3,548 2,093
Closing valuation 420,214 376,963
Closing book cost 423,811 386,556
Closing investment holding losses (3,597) (9,593)
Closing valuation 420,214 376,963
The Company received £129,737,000 (2024: £99,888,000) from investments sold in the year. The book cost of these
investments when they were purchased was £131,942,000 (2024: £104,961,000) realising a loss of £2,205,000 (2024:
£5,073,000). These in
vestments have been revalued over time and until they were sold any unrealised profits/losses were
included in the fair value of the investments.
(b) Registration of investments
The investments of the Company are registered in the name of the Company or in the name of nominees and held to the
account of the Company.
(c) Securities sold under agreements to repurchase
Included in the valuation above are securities under agreements to repurchase which had a market value of £44,796,000
(2024: £51,461,000). Included within current liabilities are Securities sold under agreements to repurchase £38,018,000
(2024: £45,127,000), further details are shown in note 15.
12. Other Receivables
Other receivables are amounts which are due to the Company, such as income which has been earned (accrued) but not
yet received and monies due from brokers for investments sold.
2025 2024
£’000 £’000
Margin held at brokers 5,141 2,783
Proceeds due from issue of new shares 658 260
Prepayments and accrued income 7,984 6,896
13,783 9,939
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13. Derivative Financial Instruments
Derivative financial instruments are financial instruments that derive their value from the performance of another item,
such as an asset or exchange rates. They are used to manage the risk associated with fluctuations in the value of certain
assets and liabilities. The Company can use derivatives to manage its exposure to fluctuations in foreign exchange rates
or to mitigate credit risk.
Derivative financial instruments comprise forward currency contracts and credit default swaps.
2025 2024
Net derivative financial instruments £’000 £’000
Forward currency contracts:
Forward currency contracts – receivable 1,729 415
Forward currency contracts – payable (24) (2,321)
1,705 (1,906)
2025 2024
£’000 £’000
Credit default swaps (‘CDS’):
Opening net CDS liabilities held at fair value as shown in balance sheet (1,223) –
Movements in year :
Purchases at cost (4,539) (1,356)
Sales - proceeds 3,494 –
Net realised gains relating to underlying price movements 112 –
Net change in unrealised (losses)/gains r
elating to underlying price movements (283) 156
Add: Prior year notional interest arising on derivatives 23 –
Less : Notional interest arising on derivatives (27) (23)
Closing net CDS liabilities held at fair value as shown in balance sheet (2,443) (1,223)
Net gains on derivative instruments – forward currency contracts and CDS consists of:
2025 2024
£’000 £’000
Movement in derivative holding gains – forward currency contracts 3,611 (3,296)
Net realised gains on derivative instruments - CDS 112 –
Movement in derivative holding gains – CDS (283) 156
Premium paid - CDS
(i)
(917) –
Net realised gains on derivative instruments – forward currency contracts 750 4,083
Net gains on derivative instruments – forward currency contracts and CDS 3,273 943
(i) Premiums paid on CDS are reflected within net gains on derivative instruments and taken to capital. Prior to 1 January 2025 the expense element was reflected
within revenue in note 6.
14. Other Payables
Other payables are amounts which must be paid by the Company, and include amounts owed to suppliers, such as the
Manager and auditor, and any amounts due to brokers for the purchase of investments.
2025 2024
£’000 £’000
Amounts due to brokers 5,215 –
Amounts payable relating to issue of new shares 3 1
Accruals 980 999
6,198 1,000
15. Securities sold under agreements to repurchase
2025 2024
£’000 £’000
Securities sold under agreements to repurchase 38,018 45,127
During the year, the Company entered into repo financing arrangement
s whereby securities are sold under agreements to
repurchase. Included within Investments Held at Fair Value Through Profit and Loss (note 11) are securities under agreements to
repurchase which had a market value of £44,796,000 (2024: £51,461,000). Further details are shown in note 2(f) and note 19.3.
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16. Stated Capital
The stated capital represents the total number of shares in issue and their attributed value. Stated capital can be used for
distributions under Jersey Law.
2025 2024
Number £’000 Number £’000
Allotted ordinary shares of no par value:
Brought forward 202,379,323 353,041 180,702,596 316,793
Net issue proceeds 34,950,000 60,098 21,676,727 36,762
Dividends paid from stated capital – (642) – (514)
237,329,323 412,497 202,379,323 353,041
At 31 December 2025, the Company’s stated capital consisted of 237,329,323 ordinary shares of no par value, allotted and
fully paid.
For the year to 31 December 2025, 34,950,000 (2024: 21,676,727) new ordinary shares were issued to the Company’s
corporate broker, Winterflood Securities Limited, for onward transmission to their clients. These shares were issued in tranches
of various quantities throughout the year to satisfy secondary market demand. The gross issue proceeds were £60,502,000
(2024: £36,946,000), at an average price of 173.11p (2024: 170.44p), and the net proceeds after issue costs were
£60,098,000 (2024: £36,762,000). The net proceeds included an aggregate amount of £232,000 (2024: £18,000) which
arose from the income accrued component of the net asset value at the date of issue of the new shares.
Subsequent to the year end and up to 27 March 2026 (being the latest practicable date prior to the publication of this report)
20,122,588 ordinary shares were issued at an average price of 173.78p.
Because the criteria in paragraphs 16C and 16D of IAS 32 Financial Instruments: Presentation, have been met, the stated capital
of the Company is classified as equity even though there is a continuation vote.
17. Reserves
This note explains the different reserves attributable to shareholders. The aggregate of the reserves and stated capital
(see previous note) make up total shareholders’ funds.
The capital reserve includes unrealised net gains and losses on in
vestments held at fair value through profit and loss, being the
difference between cost and market value at the balance sheet date, as well as gains and losses on disposal o
f investments held
at fair value through profit and loss. In addition, costs allocated to capital are recognised in the capital reserve. The revenue
reserve shows the net revenue after payment of any dividend from the reserve. Both the capital and revenue reserves are
distributable.
18. Net Asset Value per Ordinary Share
The Company’s total net assets (total assets less total liabilities) are often termed shareholders’ funds and are converted
into net asset value per ordinary share by dividing by the number of shares in issue.
The net asset value per share and the net asset values attributable at the year end were as follows:
Net asset value Net assets
per ordinary share attributable
2025 2024 2025 2024
Pence Pence £’000 £’000
Ordinary shares 172.87 170.87 410,275 345,799
Net asset value per ordinary share is based on net assets at the year end and on 237,329,323 (2024: 202,379,323) ordinary
shares, being the number of ordinary shares in issue (excluding treasury) at the year end.
19. Risk Management: Financial Assets and Liabilities
Financial instruments comprise the Company’s investment portfolio and derivative financial instruments (for the latter
see note 13) as well as any cash, borrowings (i.e. securities s
old under agreements to repurchase otherwise known as ‘repo
financing’), other receivables and other payables. The following note explains the risks that affect the Company’s financial
instruments and looks at the Company’s exposure to these various risks.
Risk Management Policies and Procedures
The Business Review details the Company’s approach to investment management risks on page 13 and the accounting policies
in note 2 explain the Company’s valuation basis for investments and currency.
As an investment company, the Company invests in loan stocks, corporate bonds, government stocks, preference shares and
equities which are held for the long-term in order to achieve the Company’s Investment Objective in accordance with its Investment
Policy. In pursuing these, the Company is exposed to a variety of risks that could result in either a reduction in the Company’s
net assets or a reduction in the profits available for payment as dividends.
The Company’s principal financial instruments at risk comprise its investment portfolio. Other financial instruments at risk include
cash and cash equivalents, borrowings (including repo financing), other receivables and other payables that arise directly from
the Company’s operations.
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19. Risk Management: Financial Assets and Liabilities (continued)
The Company may enter into derivative transactions, including credit default swaps, for efficient portfolio management. Derivative
instruments can be highly volatile and expose investors to a high risk of loss. Where used to hedge risk there is a risk that the
return on a derivative does not exactly correlate to the returns on the underlying investment, obligation or market sector being
hedged against. If there is an imperfect correlation, the Company may be exposed to greater loss than if the derivative had not
been entered into. During the year the only derivatives entered into w
ere forward currency contracts and credit default swaps.
As at the year end, credit default swaps with a market value of £(2,443,000) were held by the Company (2024: £(1,223,000)).
These risks and the Directors’ approach to managing them are set out below, and have not changed from those applied in the
comparative year.
Risk management is an integral part of the investment management process. The Manager controls risk by ensuring that the
Company’s portfolio is appropriately diversified and the portfolio managers actively monitor both the ratings and liquidity of the
fixed-interest securities taking into account the Compan
y’s financing requirements. In-depth and continual analysis of market
and security fundamentals give the portfolio managers the best possible understanding of the risks associated with a particular
security. The portfolio managers assess the e
xposure to market risk when making each investment decision, and monitor the
overall level of market risk on the whole of the portfolio on an ongoing basis.
High-yield fixed-interest securities are subject to a variety of risks, including credit risk (note 19.3).
The day to day management of the investment activities, borrowings and hedging of the Company has been delegated to the
Manager, and is the responsibility of the portfolio managers to whom the Board has given discretion to operate within set
guidelines. Any proposed variation outside those guidelines is referred to the Board and the guidelines themselves are reviewed
at every board meeting.
19.1 Market Risk
Market risk arises from changes in the fair value or future cash flows of a financial instrument. Market risk comprises three types
of risk: currency risk (note 19.1.1), interest rate risk (note 19.1.2) and other price risk (note 19.1.3).
19.1.1 Currency Risk
The Company has assets, liabilities and income which are denominated in currencies other than sterling and movements
in exchange rates will affect the sterling value of those items.
Management of the Currency Risk
The Board meets at least quar
terly to assess risk and review investment performance. The portfolio managers monitor
the Company’s exposure to foreign currencies on a daily basis and exposure is reviewed by Directors at each Board
meeting. The Company may use forward currency contracts to mitigate currency risk. In addition, non-sterling credit
default swaps will either mitigate or increase currency risk depending on whether the Company has sold or bought the
credit default swap as well as exchange movements. Repo financing is matched to the currency of the underlying assets,
which minimises currency risk on the movement of exchange rates affecting the underlying investments. Non-sterling
investments that are not pledged under repo financing can be hedged using forward currency contracts. All borrowings
and derivative contracts are limited to currencies and amounts commensurate with asset exposure to those currencies.
Income denominated in foreign currencies is converted to sterling on receipt. The Company does not use financial
instruments to mitigate the currency exposure in the period between the time that income is included in the financial
statements and its receipt.
Currency Exposure
The following table shows the fair values of the Company’s monetary items that have foreign currency exposure at
31 December. Where the Company’s investments (which are not monetary items) are priced in a foreign currency, they
have been included separately in the analysis to show the overall level of exposure.
US
Euro Dollar
£’000 £’000
31 December 2025
Investments at fair value through profit or loss that are monetary items
(fixed and floating interest) 128,645 66,355
Forward currency contracts (92,958) (69,411)
Other receivables (due from brokers and dividends) 5,828 1,494
Cash and cash equivalents 2,081 715
Derivative liabilities held at fair value through profit or loss (2,443) –
Other payables (due to brokers and accruals) (133) –
Securities sold under agreement to repurchase (34,939) –
Foreign currency exposure on net monetary items 6,081 (847)
Investments at fair value through profit or loss (preference shares and equities) 1,060 1,551
Total net foreign currency 7,141 704
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US
Euro Dollar
£’000 £’000
31 December 2024
Investments at fair value through profit or loss that are monetary items
(fixed and floating interest) 90,634 82,395
Forward currency contracts (40,357) (78,983)
Other receivables (due from brokers and dividends) 3,606 1,406
Cash and cash equivalents 5,623 1,147
Derivative liabilities held at fair value through profit or loss (1,223) –
Other payables (due to brokers and accruals) (243) –
Securities sold under agreement to repurchase (45,127) –
Foreign currency exposure on net monetary items 12,913 5,965
Investments at fair value through profit or loss (preference shares and equities) 2,795 1,678
Total net foreign currency 15,708 7,643
The above may not be representative of the exposure to risk during the year reported because the levels of monetary
foreign currency exposure may change significantly throughout the year.
Currency Sensitivity
The effect on the Statement of Comprehensive Income and the net asset value that changes in exchange rates have on
the Company’s financial assets and liabilities is based on the following currencies. These changes have been calculated
by reference to the volatility of exchange rates during the period using the standard deviation of currency fluctuations
against the mean.
2025 2024
£/Euro
±1.9% ±1.2%
£/US Dollar
±3.0% ±1.7%
The following sensitivity analysis is based on the Company’s monetary foreign currency financial instruments held at the
balance sheet date, taking account of any forward foreign exchange contracts that offset the effects of changes in
currency exchange rates, and the income receivable in foreign currency in the year.
If sterling had strengthened by the changes in exchange rates shown above, this would have had the following effect:
US
Euro Dollar
£’000 £’000
2025
Effect on Statement of Comprehensive Income – profit/(loss) after taxation
Revenue loss (198) (170)
Capital loss (22) 12
Total loss after taxation for the year (220) (158)
Effect on net asset value –0.1% 0.0%
If sterling had weakened by the same amounts, the effect would have been the converse.
US
Euro Dollar
£’000 £’000
2024
Effect on Statement of Comprehensive Income – profit/(loss) after taxation
Revenue loss (89) (103)
Capital loss (140) (104)
Total loss after taxation for the year (229) (207)
Effect on net asset value –0.1% –0.1%
If sterling had weakened by the same amounts, the effect would have been the converse.
In the opinion of the Directors, the above sensitivity analysis is not representative of the year as a whole, since the level
of exposure changes frequently as part of the currency risk management process of the Company.
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19. Risk Management: Financial Assets and Liabilities (continued)
19.1.2 Interest Rate Risk
The Company is exposed to interest rate risk in a number of ways. Movements in interest rates may affect the fair value
of fixed-interest rate securities, income receivable on cash depo
sits and floating rate securities, and interest payable on
variable rate borrowings, including repo financing. Interest rate risk is related above all to long-term financial instruments.
Whilst a significant proportion of the portfolio at both curr
ent and prior financial year ends contains securities designated
as floating rate, many of these securities include a fixed interest rate period resulting in a more predictable income stream
than their technical designation would suggest.
Management of Interest Rate Risk
The possible effects on fair value and cash flows that could arise as a result of changes in interest rates are taken into
account as part of the portfolio management and borrowings proc
esses of the Manager. The Board reviews on a regular
basis the investment portfolio and borr
owings. This encompasses the valuation of fixed-interest and floating rate securities.
When the Company has cash balances, they are held in variable rate bank accounts yielding rates of interest dependent
on the base rate of the Custodian, the Bank of New York Mellon (International) Limited. Holdings in Invesco Liquidity
Funds plc – Sterling are subject to interest rate changes.
The Company has available repo financing arrangements it can use to finance investment activity, details of which are
shown in notes 7 and 15. The Company uses these at levels approved and monitored by the Board.
Interest Rate Exposure
The following table shows the Company’s exposure to interest rate risk at the balance sheet date arising from its monetary
financial assets and liabilities.
Within More than
one year one year Total
£’000 £’000 £’000
2025
Exposure to floating interest rates:
Investments held at fair value through profit or loss 1,008 202,375 203,383
Cash and cash equivalents
(i)
21,232 – 21,232
Margin held at brokers (including collateral pledged on CDS) 5,141 – 5,141
27,381 202,375 229,756
Exposure to fixed interest rates:
Investments held at fair value through profit or loss 7,375 201,675 209,050
Derivatives held at fair value through profit or loss – (2,443) (2,443)
Securities sold under agreements to repurchase (38,018) – (38,018)
(30,643) 199,232 168,589
Net exposure to interest rates (3,262) 401,607 398,345
Within More than
one year one year Total
£’000 £’000 £’000
2024
Exposure to floating interest rates:
Investments held at fair value through profit or loss – 164,673 164,673
Cash and cash equivalents
(i)
8,153 – 8,153
Margin held at brokers (including collateral pledged on CDS) 2,783 – 2,783
10,936 164,673 175,609
Exposure to fixed interest rates:
Investments held at fair value through profit or loss 1,509 199,749 201,258
Derivatives held at fair value through profit or loss – (1,223) (1,223)
Securities sold under agreements to repurchase (45,127) – (45,127)
(43,618) 198,526 154,908
Net exposure to interest rates (32,682) 363,199 330,517
(i) Includes £16,118,000 (2024: £250,000) held in Invesco Liquidity Fund plc - Sterling.
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The nominal interest rates on the investments at fair value through profit or loss are shown in the portfolio list on pages 24
to 31. The weighted average effective interest rate on these investments is 7.9% (2024: 7.6%). The weighted average
effective interest rate on cash and cash equivalents is 3.21% (2024: 4.07%).
Interest Rate Sensitivity
The following table illustrates the sensitivity of the profit or loss after taxation for the year to a 3.25% (2024: 3.25%)
increase in interest rates in regard to the Company’s financial assets and financial liabilities. As future changes cannot
be estimated with any degree of certainty, the sensitivity analysis is based on the Company’s financial instruments held
at the balance sheet date, with all other variables held constant.
2025 2024
£’000 £’000
Effect on Statement of Comprehensive Income – profit after taxation
Revenue profit 857 355
Capital loss (52,169) (47,570)
Total loss after taxation for the year (51,312) (47,215)
Effect on NAV per ordinary share (25.4)p (23.3p)
If interest rates had decreased by 3.25% (2024: 3.25%), this would have had an equal and opposite effect.
The above exposure and sensitivity analysis are not representative of the year as a whole, since the level of exposure changes
frequently as borrowings, which are predominantly from repo financing arrangements, can vary throughout the year.
19.1.3 Other Price Risk
Other price risk includes changes in market prices, other than those arising from currency risk or interest rate risk, which
may affect the value of the investment portfolio, whether by factors specific to an individual investment or its issuer, or
by factors affecting the wider market.
Management of Other Price Risk
It is the portfolio managers’ responsibility to manage the portfolio and borrowings in accordance with the investment
objective and policy, and in accordance with the investment policy guidelines set by the Board. The Board manages the
market price risks inherent in the investment portfolio by meeting regularly to monitor on a formal basis compliance with
these. The Board also reviews investment performance. Because the Company’s portfolio is the result of the portfolio
managers’ investment process, performance may not closely correlate with the markets in which the Company invests.
The Company’s exposure to other changes in market prices at 31 December on its investments is shown in the fair value
hierarchy table on pages 70 and 71.
Concentration of Exposure to Other Price Risks
The Company’s investment portfolio is not concentrated in any single country of domicile, however, it is recognised that
an investment’s country of domicile or listing does not necessarily equate to its exposure to the economic conditions in
that country.
Other Price Risk Sensitivity
Excluding fixed interest securities and convertibles, at the year end the Company held other investments of £7,781,000
(2024: £11,032,000). The effect of a 10% increase or decrease in the fair values of these investments (including any
exposure through derivatives) on the profit after taxation for the year is £778,000 (2024: £1,103,000). This level of
change is considered to be reasonably possible based on the observation of market conditions during the financial year.
19.2 Liquidity Risk
This is the risk that the Company may encounter difficulty in meeting its obligations associated with financial liabilities i.e. when
realising assets or raising/replacing repo financing to meet financial commitments. A lack of liquidity in the portfolio may make
it difficult for the Company to realise assets at or near their purported value in the event of a forced sale.
Management of Liquidity Risk
Liquidity risk is not viewed by the Directors as a significant risk because the majority of the Company’s assets comprise readily
realisable securities, although a lack of liquidity in non-investment grade securities may make it difficult to rebalance the
Company’s investment portfolio as and when the portfolio managers believe it would be advantageous to do so. On a daily basis
the portfolio managers ascertain the Company’s cash and borrowing requirements by reviewing future cash flows arising from
purchases and sales of investments, interest and dividend r
eceipts, expenses and dividend payments, and available financing
(including repo financing).
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19. Risk Management: Financial Assets and Liabilities (continued)
19.2 Liquidity Risk (continued)
Liquidity Risk Exposure
The contractual maturities of the financial liabilities at 31 December, based on the earliest date on which payment can be
required, was as follows:
2025 2024
Less than More Less than More
three than one three than one
months year Total months year Total
£’000 £’000 £’000 £’000 £’000 £’000
Amounts due to brokers (note 14) 5,215 – 5,215 – – –
Accruals and amounts payable relating to
issue of new shares (note 14) 983 – 983 1,000 – 1,000
Derivative financial instruments – payable
(note 13) 24 2,443 2,467 2,321 1,223 3,544
Securities sold under agreements to
repurchase (note 15) 38,018 – 38,018 45,127 – 45,127
44,240 2,443 46,683 48,448 1,223 49,671
19.3 Credit Risk
Credit risk is the risk that the failure of the counterparty to a transaction to discharge its obligation under that transaction could
result in a loss to the Company. The Company’s principal credit risk is the risk of default on the non-investment grade debt. The
Company’s other main credit risk arises from the repo financing arrangements whereby, if a counterparty failed to sell the
required assets to the Company on the repurchase date, the Company would be left with the claim against the defaulting
counterparty for the stock and, if applicable, any margin held by the counterparty and not returned.
At the year end 57.7% (2024: 64.5%) of the Company’s portfolio consisted of non-investment grade securities. To the extent
that the Company invests in non-investment grade securities, the Company may realise a higher current yield than the yield
offered by investment grade securities. On the other hand, investment
s in such securities involve a greater volatility of price and
a greater risk of default by the issuers of such securities, with c
onsequent loss of interest payments and principal. Non-investment
grade securities are likely to be subject to greater uncertainties from exposure to adverse conditions and will be speculative with
respect to an issuer’s capacity to meet interest payments and repay principal in accordance with its obligations.
Investment grade and non-investment grade securities totalled 87.7% (2024: 91.2%) of the portfolio at the year end. Adverse
changes in the financial position of an issuer of such high-yield fixed-interest securities or in general economic conditions may impair
the ability of the issuer to make payments of principal and/or interest or may cause the liquidation or insolvency of an issuer.
The portfolio may be adversely affected if the Company’s custodian suffers insolvency or other financial difficulties. The
appointment of a depositary has subst
antially lessened this risk. The Board reviews the custodian’s annual controls report and
the Manager’s management of the relationship with the custodian.
Management of and Exposure to Credit Risk
Almost all of the Company’s assets are subject to credit risk. Where the portfolio managers make an investment in a bond,
corporate or otherwise, the credit rating of the issuer is also c
onsidered when assessing the risk of defaults. Investments in bonds
are across a variety of industrial sectors and geographical markets to avoid concentration of credit risk. Counterparties for
derivative transactions are also a source of credit risk. Transactions involving derivatives are entered into only with banks whose
credit ratings are taken into account to minimise default risk. The credit ratings of the derivatives counterparties range from
Aa3 through to Baa1. In addition, the Company may use credit default swaps to offset the credit risk of the portfolio. At the yea
r
end, credit default swaps with a market value of £(2,443,000) were held by the Company (2024: £(1,223,000)).
Details of the Company’s investments, including their credit ratings, are shown below. Credit risk for transactions involving
derivatives and equity investments is minimised as the Company only uses approved counterparties.
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2025 2024
% of Cumulative % of Cumulative
Rating Portfolio Total % Portfolio Total %
Investment Grade:
AAA 0.2 0.2 – –
AA+ 0.2 0.4 0.2 0.2
AA 1.5 1.9 2.6 2.8
A+ 0.3 2.2 0.2 3.0
A – 2.2 0.1 3.1
BBB+ 2.2 4.4 0.6 3.7
BBB 17.4 21.8 19.0 22.7
BBB– 8.2 30.0 4.0 26.7
Non-investment Grade:
BB+ 9.1 39.1 7.5 34.2
BB 10.4 49.5 15.4 49.6
BB– 8.7 58.2 13.6 63.2
B+ 7.4 65.6
5.5 68.7
B 12.0 77.6 14.1 82.8
B– 5.7 83.3 4.9 87.7
CCC+ 2.2 85.5 0.7 88.4
CCC 2.2 87.7 0.7 89.1
CC – 87.7 2.1 91.2
NR (including equity and CDS) 12.3 100.0 8.8 100.0
100.0 100.0
Summary of Analysis
Investment Grade 30.0 100.0 26.7 26.7
Non-investment Grade 57.7 64.5
NR (including equity and CDS) 12.3 8.8
Total 100.0 100.0
NR: not rated.
The Company manages the credit risk inherent in repo financing by only dealing with good quality counterparties whose credit-
standing is reviewed periodically by the Manager. There is a maximum limit allowed with any one counterparty, and the repo
entered into must have a maturity tenor of three months or less. The Company has exposure to credit risk on securities pledged
under repo financing held, with 4 counterparties, as follows (2024: 3 counterparties):
2025 2024
Market Market
value of Net value of Net
Amounts securities credit Amounts securities credit
borrowed pledged exposure borrowed pledged exposure
under under to under under to
repo repo counter repo repo counter
financing financing party financing financing party
Counterparty Rating Location £’000 £’000 £’000 £’000 £’000 £’000
Barclays A1/A+ UK 3,573 4,201 628 – – –
BNP UK A1/A+ UK 21,678 25,393 3,715 35,991
40,440 4,449
Morgan Stanley A1/A- UK 6,444 7,576 1,132 4,852 5,977 1,125
HSBC A1/A+ UK 6,323 7,626 1,303 4,284 5,044 760
38,018 44,796 6,778 45,127 51,461 6,334
Net credit exposure as % of net assets 1.7% 1.8
2025 2024
Receivable/ Cash collateral Receivable/ Cash collateral
Counterparty (payable) for pledged/ Counterparty (payable) for pledged/
country of derivatives (received) country of derivatives (received)
Name of counterparty incorporation £’000 £’000 incorporation £’000 £’000
Bank Of America United States (2,443) 3,289 United States (1,223) 2,021
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 69
19. Risk Management: Financial Assets and Liabilities (continued)
19.3 Credit Risk (continued)
Cash balances are held with approved deposit takers only and are limited to a maximum of 4% of the Company’s net asset value
with any one deposit taker. Balances held with Invesco Liquidity Funds plc, a triple-A rated money market fund, are limited to a
maximum of 10% of the Company’s net asset value. At the balance sheet date the Company had £5.11 million (2024:
£7.90 million) held at the custodian and £16.12 million held in Invesco Liquidity Funds plc – Sterling (2024: £0.25 million).
There are no financial assets that are past due or impaired at the year end (2024: none).
Fair Values of Financial Assets and Financial Liabilities
Financial assets are either carried in the balance sheet at their fair value (investments and derivatives), or the balance sheet amount is
a reasonable approximation of fair value (due from brokers, dividends receivable, accrued income, due to brokers, accruals and cash).
Financial liabilities are carried at amortised cost except for derivatives, which as stated above are carried at fair value.
20. Classification Under Fair Value Hierarchy
The valuation techniques used by the Company are explained in the accounting policies note 2(c). The table that follows sets out
the fair value of the financial instruments. The three levels set out in IFRS 7 hierarchy follow:
Level 1 – The unadjusted quoted price in an active market for identical assets or liabilities that the entity can access at the
measurement date.
Level 2 – Inputs other than quoted prices included within Level 1 that are observable (i.e. developed using market data) for the
asset or liability, either directly or indirectly.
Level 3 – Inputs are unobservable (i.e. for which market data is unavailable) for the asset or liability.
Categorisation within the hierarchy is determined on the basis of the lowest level input that is significant to the fair value
measurement of each relevant asset/liability.
Normally investments would be valued using stock market active prices, with investments disclosed as Level 1 and this is the case
for the quoted equity investments that the Company holds. However, the majority of the Company’s investments are non-equity
investments. Evaluated prices from a third party pricing vendor are used to price these securities, together with a price comparis
on
made to secondary and tertiary evaluated third party sources. Evaluated prices are in turn based on a variety of sources including
broker quotes and benchmarks. As a result, the Company’s non-equity investments have been shown as Level 2 – recognising that
the fair values of these investments are not as visible as quot
ed equity investments and their higher inherent pricing risk. However,
this does not mean that the fair values shown in the portfolio valuation are not achievable at point of sale.
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
2025
Financial assets designated at fair value
through profit or loss:
Quoted Investments:
– Fixed interest securities
(i)
– 338,116 1,332 339,448
– Convertibles – 64,695 – 64,695
– Government – 8,290 – 8,290
– Preference 2,991 – 3,654 6,645
– Equities 55 135 946 1,136
Derivative financial instruments:
– Currency hedges – 1,705 – 1,705
– Credit default swaps – (2,443) – (2,443)
Total for financial assets 3,046 410,498 5,932 419,476
A reconciliation of the fair value of Level 3 is set out below.
2025
£’000
Opening fair value 7,420
Transfers from Level 2 to Level 3
(ii)
5
Purchases at cost 308
Sales
– proceeds (629)
– net realised losses (1,433)
Movement in holding gains/(losses) 261
Closing fair value of Level 3 5,932
(i) 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.
(ii) Frigoglass Common Stock was reclassified from Level 2 to Level 3 of the fair value hierarchy during the year. The transfer reflect
s reduced market observability of
key valuation inputs, resulting in the fair value measurement now relying on significant unobservable inputs.
70
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 70
71
Level 3 investments are investments for which inputs are unobservable (i.e. for which market data is unavailable). The Level 3
investments in the portfolio and their respective values at the year end were Haleon 9.5% Preference £3,654,000 (2024:
£3,661,000), Frigoglass 11% PIK 27 Mar 2026 £1,145,000 (2024: £969,000), Frigoglass 0% 27 Mar 2028 £187,000 (2024:
£nil), Frigoglass Common Stock £5,000 (2024: £5,000 shown as Level 2), Codere A1 Shares £639,000 (2024: £2,132,000)
and Codere A2 Shares £302,000 (2024: £658,000). Haleon 9.5% Preference price is based on a single private indicative broker
quote with no publicly observable market price available, therefore as the price is unobservable this investment has been classified
as Level 3. Frigoglass 11% PIK 27 Mar 2026, Frigoglass 0% 27 Mar 2028: judgement involved assessing the seniorit
y of this
security (regarded as “Super Senior” in relation to the other Frigoglass traded debt securities) which would be a key consideration
should the company fail, with a resultant higher price level compared to comparable Frigoglass traded debt securities, further
justified by its short-term maturity. The Codere A1 and A2 securities, which were taken on as part of a second restructuring where
the Portfolio Manager agreed to participate in short-term financing, are priced based on private indicative broker quotes as no
publicly observable market price is currently available for these securities. Given the restricted nature of these quotes, being
generally unobservable, that trading may not be visible due to trading taking place on the OTC market, a cautious judgement was
applied, taking the lowest bid quote available.
Any non-actively traded investments are reviewed relative to appropriate supporting evidence. The Board reviews detailed portfolio
valuations on a regular basis throughout the year and receives confirmation from the Manager that the pricing basis is appropriate
and in line with relevant accounting standards as adopted by the Company.
The categorisation of an investment within the hierarchy is based upon the pricing transparency of the investment and does not
necessarily correspond to the Directors’ perceived risk of that investment.
Level 1 Level 2 Level 3 Total
£’000 £’000 £’000 £’000
2024
Financial assets designated at fair value
through profit or loss:
Quoted Investments:
– Fixed interest securities
(i)
– 289,607 969 290,576
– Convertibles – 64,897 – 64,897
– Government – 10,458 – 10,458
– Preference 4,513
– 3,661 8,174
– Equities 63 5 2,790 2,858
Derivative financial instruments:
– Currency hedges – (1,906) – (1,906)
– Credit default swaps – (1,223) – (1,223)
Total for financial assets 4,576 361,838 7,420 373,834
A reconciliation of the fair value of Level 3 is set out below.
2024
£’000
Opening fair value –
Securities resulting from restructure 6,913
Purchases at cost 3,694
Movement in holding gains/(losses) (3,187)
Closing fair value of Level 3 7,420
(i) 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.
21. Capital Management
The Company’s capital, or equity, is represented by its net assets which are managed to achieve the Company’s investment
objective set out on page 11.
The main risks to the Company’s investments are shown in the Business Review under the ‘Principal and Emerging Risks and
Uncertainties’ section on pages 14 and 15. These also explain that the Company is able to gear and that gearing will amplify the
effect on equity of changes in the value of the portfolio.
The Board can also manage the capital structure directly since it has taken the powers, which it is seeking to renew, to issue and
buy-back shares and it also determines dividend payments.
The Board regularly monitors the level of borrowing used by the Company and has imposed limits within which borrowings should
be managed.
Total equity at 31 December 2025, the composition of which is shown on the balance sheet on page 54, was £410,275,000
(2024: £345,799,000).
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 71
22. Contingencies, Guarantees and Financial Commitments
Liabilities the Company is committed to honour but which are dependent on a future circumstance or event occurring would
be disclosed in this note if any existed.
There were no contingencies, guarantees or other financial commitments of the Company as at 31 December 2025 (2024: nil).
23. Related Party Transactions and Transactions with Manager
A related party is a company or individual who has direct or indirect control or who has significant influence over the
Company.
Under IFRS Accounting Standards as adopted by the EU, the Company has identified the Directors and their dependents as
related parties. Directors fees paid have been disclosed in the Directors’ Remuneration Report on pages 43 and 44 with additional
disclosure in note 6. Full details of Directors’ interests are set out in the Directors’ Remuneration Report on page 44. No other
related parties have been identified.
Invesco Fund Managers Limited and Invesco Asset Management Limited, both of which are wholly owned subsidiaries of Invesco
Limited, provided investment management and administration services to the Company. Invesco Limited or its subsidiaries are
not considered related parties as they do not have direct or indirect control nor significant influence over the Company. Details
of the services and fees are disclosed in the Business Review and management fees payable are shown in note 5.
24. Post Balance Sheet Events
Any significant events that occurred after the end of the reporting period but before the signing of the balance sheet will
be shown here.
There was a successful placing and Winterflood Retail Access Platform (‘WRAP’) retail offer, announced on 29 January 2026
raising total proceeds (net of commission) of £24,780,000. The Company has issued a total of 14,372,588 new ordinary shares
of no par value in the capital of the Company at a price of 173.28p per New Share, representing a 0.75% premium to the cum-
income NAV per Share as at 10 February 2026, being the last published NAV per Share prior to the close of the Placing and the
WRAP Retail Offer. 7,710,707 New Shares were issued pursuant to the Placing and 6,661,881 New Shares were issued pursuant
to the WRAP Retail Offer.
72
Bond Income Plus AR 3 Financial p46-72.qxp 31/03/2026 14:23 Page 72
73
Invesco Bond Income Plus Limited
4
Shareholder
Notice of Annual General Meeting ............................................74
Shareholder Information ..........................................................76
Advisers and Principal Service Providers ..................................77
Glossary of Terms and Alternative Performance Measures.........78
Alternative Investment Fund Managers Directive Disclosures......82
Bond Income Plus AR 4 Shareholders pp73-84.qxp 31/03/2026 14:22 Page 73
74
THIS NOTICE OF ANNUAL GENERAL MEETING IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. If you are in
any doubt as to what action to take, you should consult your stockbroker, solicitor, accountant or other appropriate independent
professional adviser authorised under the Financial Services and Markets Act 2000. If you have sold or otherwise transferred
all your shares in Invesco Bond Income Plus Limited, please forward this document and accompanying form of Proxy to the
person through whom the sale or transfer was effected, for transmission to the purchaser or transferee.
NOTICE OF ANNUAL GENERAL
MEETING
The Board are pleased to welcome shareholders to attend the
AGM in person. If you cannot attend in person please lodge your
vote either electronically via the registrar’s online portal or using
the Form(s) of Proxy to appoint the Chairman of the General
Meeting as your proxy to vote on your behalf.
NOTICE IS GIVEN that the Annual General Meeting (‘AGM’) of
Invesco Bond Income Plus Limited (‘the Company’) will be held at
9.30am on 17 June 2026 at the offices of JTC Fund Solutions
(Jersey) Limited, PO Box 1075, 28 Esplanade, St Helier, Jersey
JE4 2QP for the follo
wing purposes:
Ordinary Business
1. To receive the Annual Financial Report for the year ended
31 December 2025.
2. To approve the Directors’ Remuneration Report.
3. To approve the Company’s Dividend Payment Policy to pay
four quarterly dividends to shareholders in May, August,
November and February in respect of each accounting year.
4. To approve the appointment of KPMG Audit Limited as the
Company’s auditor.
5. To authorise the Audit & Risk Committee to determine the
remuneration of the auditor.
6. To re-elect Heather MacCallum as a Director of the
Company.
7. To re-elect Caroline Dutot as a Director of the Company.
8. To re-elect Christine Johnson as a Director of the Company.
9. To elect Arun Kumar Sarwal as a Director of the Company.
Special Business
To consider and if thought fit, to pass the following resolutions, of
which resolution 10 will be proposed as an ordinary resolution and
resolutions 11 to 14 will be proposed as special resolutions:
10. THAT, in accordance with Article 158 of the Company’s
Articles of Association, the Directors of the Company be and
are hereby released from their obligation pursuant to such
Article to convene a general meeting of the Company within
six months of the AGM at which a special resolution would
be proposed to wind up the Company.
11. THAT, pursuant to Article 14.1 of the Company’s Articles of
Association, the Directors be and are hereby empowered to
issue shares, up to 10% of the existing shares in issue at the
time of the AGM, without pre-emption.
12. THAT, pursuant to Article 14.1 of the Company’s Articles of
Association and in addition to any authority granted under
Resolution 11 above, the Directors be and are hereby
empowered to issue shares up to 10% of the existing shares
in issue at the time of the AGM, without pre-emption.
13. THAT, pursuant to Article 8.2 of the Company’s Articles of
Association and Article 57 of the Companies (Jersey) Law
1991 as amended (the Law), the Company be generally and
unconditionally authorised to make purchases of its issued
ordinary shares of no par value (Shares) to be cancelled or
held as treasury shares provided that:
(i) the maximum number of Shares hereby authorised
to be purchased shall be 14.99% of the Company’s
issued ordinary shares, this being 38,592,041 as at
27 March 2026 (being the latest practicable date
prior to the publication of this Notice);
(ii) the minimum price which may be paid for a Share is
1p;
(iii) the maximum price which may be paid for a share
must not be more than the higher of:
(i) 5% above the average of the mid-market values
of the Shares for the five business days before
the purchase is made; and
(ii) the higher of the price of the last independent
trade in the shares and the highest then
current independent bid for the Shares on the
London Stock Exchange;
(iv) any purchase of shares will be made in the market
for cash prices below the prevailing net asset value
per share (as determined by the Directors);
(v) the authority hereby conferred shall expire on the
earlier of the conclusion of the next AGM of the
Company held after passing of this resolution or 15
months from the date of the passing of this
resolution, whichever is the earlier.
14. THAT, the period of notice required for general meetings
of the Company (other than AGMs) shall be not less than
14 days.
Dated this 31 March 2026
By order of the Board
JTC Fund Solutions (Jersey) Limited
Company Secretary
Notice of Annual General
Meeting
Bond Income Plus AR 4 Shareholders pp73-84.qxp 31/03/2026 14:22 Page 74
75
Notes:
1. A form of appointment of proxy accompanies this Annual
Financial Report.
A member entitled to attend and vote at the AGM is entitled
to appoint one or more proxies to attend, speak and vote in
his or her stead. Where more than one proxy is appointed,
each proxy must be appointed to exercise the rights attached
to a different share or shares. A proxy need not be a member
of the Company.
In order to be valid an appointment of proxy must be
returned, duly executed and completed, by one of the
following methods:
•
via Computershare’s website
http://www.eproxyappointment.com; or
•
in hard copy form by post, by courier or by hand to the
Company’s registrars, Computershare Investor Services
(Jersey) Limited, C/O The Pavilions, Bridgwater Road,
Bristol BS99 6ZY; or
•
in the case of CREST members, by utilising the CREST
electronic proxy appointment service in accordance with
the procedures set out below and, in each case, to be
received by the Company not less than 48 hours before
the time of the meeting.
The appointment of a proxy (whether by completion of a
form of appointment of pro
xy or other instrument appointing
a proxy or any CREST Proxy Instruction) does not prevent a
member from attending and voting at the AGM.
2. CREST members who wish to appoint a proxy or proxies by
utilising the CREST electronic proxy appointment service
may do so by utilising the procedures described in the CREST
Manual. CREST Personal Members or other CREST
sponsored members and those CREST members who have
appointed a voting service provider(s), should refer to their
CREST sponsor or voting service provider(s), who will be able
to take the appropriate action on their behalf. In order for a
proxy appointment made by means of CREST to be valid, the
appropriate CREST message (a ‘CREST Proxy Instruction’)
must be properly authenticated in accordance with Euroclear
UK & Ireland Limited’s specifications and must contain the
information required for such instructions, as described in
the CREST Manual. The message, regardless of whether it
relates to the appointment of a proxy or to an amendment
to the instruction given to a previously appointed proxy
must, in order to be valid, be transmitted so as to be received
by the issuer’s agent ID 3RA50 (Computershare) by the
latest time for receipt of proxy appointments specified in this
document. For this purpose, the time of receipt will be taken
to be the time (as determined by the time stamp applied to
the message by the CREST Applications Host) from which
the issuer’s agent is able to retrieve the message by enquiry
to CREST in the manner prescribed by CREST. After this time
any change of instructions to proxies through CREST should
be communicated to the appointee through other means.
The Company may treat as invalid a CREST Proxy Instruction
in the circumstances set out in Regulation 35(5)(a) of the
Uncertificated Securities Regulations 2001. CREST members
and, where applicable, their CREST sponsors or voting
service providers should note that Euroclear UK & Ireland
Limited does not make available special procedures in CREST
for any particular messages.
Normal system timings and limitations will therefore apply in
relation to the input of CREST Proxy Instructions. It is the
responsibility of the CREST member concerned to take or, if
the CREST member is a CREST Personal Member or
sponsored member or has appointed a voting service
provider(s), to procure that his CREST sponsor or voting
service provider(s) take(s), such action as shall be necessary
to ensure that a message is transmitted by means of the
CREST system by any particular time. In this connection,
CREST members and, where applicable, their CREST
sponsors or voting service providers are referred, in
particular, to those sections of the CREST Manual concerning
the practical limitations of the CREST system and timings.
3. A person entered on the Register of Members at close of
business 48 hours before the time of the AGM (a member) is
entitled to attend and vote at the AGM pursuant to
Regulation 41 of the Uncertificated Securities Regulations
2001. Any changes to the Register of Members after such time
and date shall be disregarded in determining the rights of any
person to attend and/or vote at the AGM. If the AGM is
adjourned, entitlement to attend and vote at the adjourned
meeting, and the number of votes which may be cast thereat,
will be determined by reference to the Company’s Register of
Members 48 hours before the time fixed for the adjourned
meeting.
4. The schedule of matters for the Board and the terms of
reference of the Audit & Risk Committee will be available at
the AGM for at least 15 minutes prior to and during the AGM.
5. A copy of the Articles of Association is available for
inspection at the Registered Office of the Company during
normal business hours on any business day (excluding public
holidays) and will also be available at the AGM for at least
15 minutes prior to and during the AGM.
6. Any corporation which is a member can appoint one or more
corporate representatives who may exercise on its behalf all
of its powers as a member provided that they do not do so
in relation to the same shares.
7. Any member attending the AGM has the right to ask
questions. The Company must cause to be answered any
such question relating to the business being dealt with at the
AGM but no such answer need be given if: (a) to do so would
interfere unduly with the preparation of the AGM or involve
the disclosure of confidential information; (b) the answer has
already been given on a website in the form of an answer to
a question; or (c) it is undesirable in the interests of the
Company or the good order of the AGM that the question be
answered.
8. You may not use any electronic address (any address or
number used for the purposes o
f sending or receiving
documents or information by electronic means) provided in
this Notice (or in any related documents including the proxy
form) to communicate with the C
ompany for any purposes
other than those expressly stated.
9. As at 27 March 2026 (being the
latest practicable date prior
to the publication of this Notice) the Company’s issued share
capital consisted of 257,451,911 ordinary shares of no par
value each carrying one vote.
10. A copy of the Notice as well as various other documents
relating to the Company can be found at
www.invesco.co.uk/bips.
Bond Income Plus AR 4 Shareholders pp73-84.qxp 31/03/2026 14:22 Page 75
76
The shares of Invesco Bond Income Plus Limited are quoted on
the London Stock Exchange.
Manager’s Website
Information relating to the Company can be found on the
Manager’s website, which can be located at
www.invesco.co.uk/bips.
The contents of websites referred to in this document, or
accessible from links within those websites, are not incorporated
in, nor do they form part of this Annual Financial Report.
Net Asset Value (‘NAV’) Publication
The Company’s NAV is calculated on a daily basis and notified to
the London Stock Exchange on the next business day. Estimated
NAVs are published daily in the national newspapers as detailed
under Share Price Listings.
Share Price Listings
The price of your shares can be found by accessing the Manager’s
website (see below).
In addition, share price information can be found using the BIPS
ticker code.
Internet addresses
Invesco www.invesco.co.uk/bips
The Association www.theaic.co.uk
of Investment Companies
Financial Calendar
In addition, the Company publishes information according to the
following calendar:
Announcements
Annual financial reports April
Half-yearly unaudited financial report August
Ordinary Share Dividends
Interim dividends payable May, August
November, February
Year End 31 December
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 on page 77. Shareholders
holding shares via an investment platform or nominee
arrangement should contact their platform provider or broker for
information on how to reinvest their dividends.
Annual General Meeting
The Annual General Meeting will be held at 9.30am on 17 June
2026 at the offices of JTC Fund Solutions (Jersey) Limited,
PO Box 1075, 28 Esplanade, St Helier, Jersey JE4 2QP. The
Board are pleased to welcome shareholders to attend the AGM in
person. If you cannot attend in person lodge your vote either
electronically via the registrar’s online portal or using the Form(s)
of Proxy to appoint the Chairman of the General Meeting as your
proxy to vote on your behalf.
General Data Protection Regulation (‘GDPR’)
The Company has a privacy notice which sets out what personal
data is collected and how and why it is used. The privacy notice
can be found at www.invesco.co.uk/investmenttrusts under the
‘Literature’ section, or a copy can be obtained from the
Company Secretary whose correspondence address is found on
the next page.
Shareholder Information
Investment and pension scams are
Be a ScamSmart investor and spot the warning signs
Fraudsters will often:
• contact you out of the blue
• apply pressure to invest quickly
• downplay the risks to your money
• promise tempting returns that sound too good to be true
•
even ask you to not tell anyone else about it
How to avoid investment and pension scams
Y
contacting our Consumer Helpline on
0800 111 6768 or using our reporting form
using the link below.
If you’ve lost money in a scam, contact
Action Fraud on 0300 123 2040 or
www.actionfraud.police.uk
Scammers usually cold call, but contact
can also come by email, post, word of mouth
investment out of the blue, chances are it’s
a high risk investment or a scam.
Check the FCA Warning List
Use the FCA Warning List to check the risks
of a potential investment – you can also search
our authorisation.
Get impartial advice before investing – don’t use
Be ScamSmart and visit
1
2
3
Bond Income Plus AR 4 Shareholders pp73-84.qxp 31/03/2026 14:22 Page 76
77
Alternative Investment Fund Manager
(Manager)
Invesco Fund Managers Limited
Perpetual Park
Perpetual Park Drive
Henley-on-Thames
Oxfordshire RG9 1HH
☎ 01491 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 annual 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: Claire Brazenall
☎ 01534 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
From 17 June 2026:
KPMG Audit Limited
37 Esplanade
St Helier
Jersey JE2 3QE
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 (0370) 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).
Advisers and Principal
Service Providers
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78
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 years ended 31 December 2025 and
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, conversely, is a measure of the amount by which the mid-market price of an investment compan
y
share is lower than the underlying net asset value of that share. In this Annual 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. 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.
Page 2025 2024
Share price 3 a 175.00p 174.00p
Net asset value per share 54 b 172.87p 170.87p
Premium c = (a-b)/b 1.2% 1.8%
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 per
centage
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.
2025 2024
Page £’000 £’000
Securities sold under agreements to
repurchase (repo financing) 62 38,018 45,127
Gross borrowings a 38,018 45,127
Net asset value 54 b 410,275 345,799
Gross gearing c = a/b 9.3% 13.1%
Glossary of Terms
and Alternative Performance
Measures
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79
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.
2025 2024
Page £’000 £’000
Securities sold under agreements to
repurchase (repo financing) 62 38,018 45,127
Less: cash and cash equivalents including margin 54 (26,373) (10,936)
Net borrowings a 11,645 34,191
Net asset value 54 b 410,275 345,799
Net gearing c = a/b 2.8% 9.9%
Leverage
Leverage, for the purposes of the Alternative Investment Fund Managers Directive (AIFMD), is not synonymous with gearing as defined
above. In addition to borrowings, it encompasses anything that incr
eases the Company’s exposure, including foreign currency and
exposure gained through derivatives. Leverage expr
esses the Company’s exposure as a ratio of the Company’s net asset value.
Accordingly, if a Company’s exposure was equal to its net assets it would have leverage of 100%. Two methods of calculating such
exposure are set out in the AIFMD, gross and commitment. Under the gross method, exposure represents the aggregate of all the
Company’s exposures other than cash balances held in base currency and without any offsetting. The commitment method takes into
account hedging and other netting arrangements designed to limit risk, offsetting them against the underlying exposure.
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. Therefore a 1% rise in interest rates le
ads to a
1% fall in the value of the bond or portfolio.
Net Asset Value (‘NAV’) and NAV per share
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 share is calculated by dividing the net asset value by the number of ordinary shares in issue (
see
note 18 on page 63). For accounting purposes assets are v
alued at fair (usually market) value and liabilities are valued at par (their
repayment – often nominal – value).
Ongoing Charges Ratio (‘APM’)
The ongoing administrative costs of operating the Company are encapsulated in the ongoing charges ratio, which is calculated in
accordance with guidance issued by the AIC. The calculation incorporates charges allocated to capital in the financial statements
as
well as those allocated to revenue, but excludes non-recurring costs, transaction costs of investments, finance costs, taxation, and the
costs of buying back or issuing shares. T
he ongoing charges ratio is the aggregate of these costs expressed as a percentage of the
daily average net asset value reported in the year.
2025 2024
Page £’000 £’000
Investment management fee 59 2,460 2,180
Other expenses 59 829 896
Less: costs in relation to custody dealing charges, premium on
credit default swaps (2024 only) and one off legal costs (48) (146)
Total recurring expenses a 3,241 2,930
Average daily net asset value b 367,408 328,860
Ongoing charges ratio % c = a/b 0.88% 0.89%
Earnings
The earnings generated in a period from the investments including the increase and decrease in the value of investments over time
and the income received.
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80
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 annual financial report these return figures have been sourced from LSEG Data & Analytics
who calculate returns on an industry comparative basis. The figures calculated below are one year total returns, however the same
calculation would be used for three and five year total returns where quoted in this report, taking the respective Net Asset Value
s and
Share Prices period 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. Refer to the table below
for the reconciliation to the NAV on pages 3 and 4.
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. Refer to the table below for the
reconciliation to the share price on page 3.
Net Asset Share
2025 Page Value Price
As at 31 December 2025 3 172.87p 175.00p
As at 31 December 2024 3 170.87p 174.00p
Change in year a 1.2% 0.6%
Impact of dividend reinvestments
(i)
b 7.5% 7.4%
Total return for the year c = a+b 8.7% 8.0%
Net Asset Share
2024 Page Value Price
As at 31 December 2024 3 170.87p 174.00p
As at 31 December 2023 4 168.58p 171.00p
Change in year a 1.4% 1.8%
Impact of dividend reinvestments
(i)
b 7.1% 7.0%
Total return for the year c = a+b 8.5% 8.8%
(i) Total dividends paid during the year of 12.25p (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.
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81
Credit Ratings Definitions
The definitions for the credit ratings shown in the financial statements are as follows:
Moody’s Ratings
Investment Grade
Aaa: judged to be of the highest quality, with minimal credit risk.
Aa1, Aa2, Aa3: judged to be of high quality and are subject to very low credit risk.
A1, A2, A3: considered upper-medium grade and are subject to low credit risk.
Baa1, Baa2, Baa3: subject to moderate credit risk. They are considered medium-grade and as such
may possess c
ertain speculative characteristics.
Speculative Grade (non-investment grade)
Ba1, Ba2, Ba3: judged to have speculative elements and are subject to substantial credit risk.
B1, B2, B3: considered speculative and are subject to high credit risk.
Caa1, Caa2, Caa3: judged to be of poor standing and are subject to very high credit risk.
Ca: highly speculative and are likely in, or very near, default, with some prospect of recovery of
principal and interest.
C: lowest rated class of bonds and are typically in default, with little prospect for recovery of
principal or interest.
WR: withdrawn rating.
P: provisional.
Standard & Poor’s Ratings
Investment Grade
AAA: the best quality borrowers, reliable and stable (many of them governments).
AA: quality borrowers, a bit higher risk than AAA.
A: economic situation can affect finance.
BBB: medium class borrowers, which are satisfactory at the moment.
Non-investment Grade
BB: more prone to changes in the economy.
B: financial situation varies noticeably.
CCC: currently vulnerable and dependent on favourable economic conditions to meet commitments.
CC: highly vulnerable, very speculative.
C: highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on
obligations.
CI: past due on interest.
R: under regulatory supervision due to the company’s financial situation.
SD: has selectively defaulted on some obligations.
D: has defaulted on obligations and S&P believes that the company will generally default on most or
all obligations.
NR: not rated.
Equivalent average rating is based on the following methodology of rating (using Moody’s, Fitch and
Standard & Poor’s Ratings where applicable for each holding):
• if one rating available, use that rating;
• if two ratings, use the lower rating;
• if three ratings, use the middle rating.
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82
Alternative Investment Fund Manager (‘AIFM’) and
the Alternative Investment Fund Managers Directive (the ‘AIFMD’, the Directive)
Invesco Fund Managers Limited (‘IFML’) was authorised as an AIFM, and appointed by the Company as such, with effect from 22 July
2014. IFML is an associated company of Invesco Asset Management Limited (‘IAML’), the previous Manager, and IAML continues to
manage the Company’s investments under delegated authority from IFML. In accordance with the Directive, the Company qualifies as
an Alternative Investment Fund (‘AIF’).
Amongst other things, the AIFMD requires certain information to be provided to prospective investors. This information can be found
in the Company’s section of the Manager’s website (https://www.invesco.com/uk/en/investment-trusts/invesco-bond-income-plus-
limited.html) in a downloadable document entitled ‘
AIFMD Investor Information’. There have been no material changes to this information
in the year to 31 December 2025 or up to the date of this report. Any information requiring immediate disclosure pursuant to the
Directive will be disclosed through a primary information provider.
In addition, the Directive requires information in relation to the Company’s leverage (both ‘gross’ and ‘commitment’ – see Glossary on
page 79) and the remuneration of the Company’s AIFM (IFML) to be made available to investors.
Accordingly:
– the leverage calculated for the Company at the year end was 153% for gross and 113% for commitment (2024: 158% and 124%
respectively). The limits the AIFM has set for the Company remain unchanged at 300% and 250%, respectively;
– the AIFM summary remuneration policy is available from the corporate policies section of the Manager’s website
(www.invesco.com/uk) and from the Company’s Company Secretary, on request (see contact details on page 77); and
– the AIFM remuneration paid for the year to 31 December 2025 is set out below.
AIFM Remuneration
Remuneration policy
On 18 March 2016, Invesco Fund Managers Limited (the “Manager”) adopted a remuneration policy consistent with the principles
outlined in the European Securities and Markets Authority (ESMA) Guidelines, on sound remuneration policies under the AIFM Directiv
e.
The policy was revised in 2024, to include specificities for some Invesco EU regulated Management Companies. The Manager was not
impacted by the changes.
The purpose of the remuneration policy is to ensure the remuneration of the staff of the Manager is consistent with and promotes
sound and effective risk management, does not encourage risk-taking which is inconsistent with the risk profiles, rules or instrument
s
of incorporation of the Manager and of the AIF it manages and does not impair the Manager’s compliance with its duty to act in the
best interests of the AIF it manages. The Manager’s summary remuneration policy is available from the corporate policies section o
f
our website (www.invesco.co.uk). Paper copies of the full remuneration policy can be obtained for free from the registered office
of
the Manager, Invesco Fund Managers Limited, Perpetual Park, Perpetual Park Drive, Henley-on-Thames, Oxfordshire, RG9 1HH, UK
upon request.
The remuneration policy is reviewed annually by the Compliance, Human Resources and Risk Management functions, who recommend
any adjustments to ensure continued alignment of the policy with s
ound risk management. The board of directors of the Manager are
responsible for the oversight of remuneration and for ensuring adherence to this policy through the Human Resources function.
The Internal Audit function conducts regular testing o
f administration of the remuneration policy to assess its ongoing compliance with
the Invesco Group’s remuneration policies and procedures.
The Manager does not employ any direct staff. All staff involved in the AIF related activities of IFML are employed and paid by v
arious
entities of the Invesco Ltd. Group.
The aggregate total remuneration of Invesco staff involved in AIF related activities of the Manager in respect of performance yea
r
2025 (1 January 2025 to 31 December 2025) is £1.57 million of which £0.97 million is fixed remuneration and £0.60 million is
variable remuneration. The number of beneficiaries apportioned to AIFMD activities is 7.
The Manager has identified individuals considered to have a material impact on the risk profile of the Manager or the AIF it manage
s
(“Identified Staff”), who include board members of the Manager, senior management, he
ads of control functions, other risk takers and
any employees receiving total remuneration that takes them into the same remuneration bracket as senior management and risk taker
s.
The aggregate total remuneration paid to the Identified Staff of the Manager for AIF related activities for the performance year 2025
(1 January 2025 to 31 December 2025) is £0.8
4 million of which £0.55 million is paid to Senior Management and £0.29 million is
paid to other Identified Staff. Please note that remuneration f
or AIFMD Identified Staff includes remuneration for staff employed by
delegates.
Alternative Investment Fund
Managers Directive Disclosures
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The Manager of Invesco Bond Income Plus Limited is
Invesco Fund Managers Limited.
Invesco Fund Managers Limited is a wholly owned subsidiary of Invesco Limited
and is authorised and regulated by the Financial Conduct Authority.
Invesco is one of the largest independent global investment firms, with funds
under management of $2,257.7 billion.*
Invesco aims to provide the highest returns available from markets, through
active management, but in a controlled manner, conscious of the risks involved
and within our clients’ objectives.
* As at 28 February 2026.
Bond Income Plus AR 4 Shareholders pp73-84.qxp 31/03/2026 14:22 Page 83
Invesco Bond Income Plus Limited Annual Financial Report 2025
Income you can set your
clock by
†
†
Capital at risk. Income not guaranteed.
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