Webinar replay: Delivering income in a low yield world
Listen to Rhys Davies as he discusses the current challenges and opportunities in high yield markets and answers questions on the proposed merger of City Merchants High Yield Trust Limited and Invesco Enhanced Income Limited to form Invesco Bond Income Plus Ltd. Rhys covers:
- How 2020 provided an opportunity to lock-in yield
- Examples of the investments he has made and how he approaches credit selection
- The current position of the portfolios
Investment risks
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The value of investments and any income will fluctuate (this may partly be the result of exchange rate fluctuations) and investors may not get back the full amount invested.
The portfolios have a significant proportion of high-yielding bonds, which are of lower credit quality and may result in large fluctuations in the NAV of the products. The products uses derivatives for efficient portfolio management which may result in increased volatility in the NAV. The use of borrowings may increase the volatility of the NAV and may reduce returns when asset values fall. The products may invest in contingent convertible bonds which may result in significant risk of capital loss based on certain trigger events. As a result of COVID-19, markets have seen a noticeable increase in volatility as well as, in some cases, lower liquidity levels; this may continue and may increase these risks in the future.
Important information
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This video is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell securities.
Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.
For more information on our products, please refer to the relevant Key Information Document (KID), Alternative Investment Fund Managers Directive document (AIFMD), and the latest Annual or Half-Yearly Financial Reports. This information is available using the contact details shown.
City Merchants High Yield Trust Limited and Invesco Enhanced Income Limited are regulated by the Jersey Financial Services Commission.
