#United States #Atlanta #VVR #VLT #Invesco Trust

Invesco Maintains Steady Dividend Rates for Investors

Invesco Ltd., a leading independent investment management firm, has recently made an announcement that is sure to please investors in the Invesco closed-end funds. On March 24, 2025, the Board of Trustees authorized dividends to be declared for the Invesco Senior Income Trust (NYSE: VVR) and the Invesco High Income Trust II (NYSE: VLT). This announcement comes amidst a stable financial environment, reassuring investors about the reliability of their investments.

Key Details of the Announcement

The announcement specified that the Managed Distribution Plans (MDP) for both funds are set to be removed. It is crucial to understand that this decision does not imply a reduction in monthly distributions. On the contrary, investors can continue to anticipate stable monthly distributions from these funds, which will be communicated through official press releases. According to Invesco's expectations, the distribution rates for both VVR and VLT are slated to remain unchanged in the near future, subject to market fluctuations.

The initial rationale behind implementing the MDP was to create a consistent monthly distribution stream for investors, thereby minimizing volatility—a common characteristic of senior loan products due to their floating interest rates. Over the past few years, the MDP has seen fluctuating levels of undistributed net investment income, which has had both positive and negative impacts on investors. By removing the MDP, Invesco aims to gain flexibility in adjusting to the changing income levels underlying the funds.

Other Stable Features

Aside from the removal of MDPs, Invesco has confirmed that there will be no changes to the portfolios, investment philosophies, or management teams of VVR and VLT. This consistency in management style is vital as it gives investors confidence in the fund’s integrity and commitment to its investment strategies.

The decision to maintain the existing distribution amounts reflects the Board of Trustees' continuous evaluation concerning how distributions affect total return outcomes for investors in closed-end funds. It has been noted that to sustain the targeted distribution levels, some funds may utilize sources beyond current net investment income, including prior accumulated undistributed net investment income or, occasionally, returns of capital.

Upcoming Distribution Schedule

The upcoming distribution dates for the relevant funds are as follows:

• - Ex-Date: April 16, 2025
• - Record Date: April 16, 2025
• - Reinvest Date: April 30, 2025
• - Payable Date: April 30, 2025

The Board has outlined specific dividends for various Invesco closed-end management investment companies, with VVR slated for a monthly dividend of $0.03801 per share, maintaining the previous distribution level without any changes.

Understanding the Impact

Investing in closed-end funds can pose risks, including potential losses. Invesco emphasizes the importance of being aware that past dividends do not guarantee future distributions. They are committed to transparency, and shareholders will receive notices disclosing the sources of dividend payments when distributions include amounts other than net investment income.

In conclusion, Invesco's commitment to steadiness in dividend payments through VVR and VLT affirms their dedication to providing stability for investors. This consistency provides a strong foundation for those looking to invest in closed-end funds, allowing them to plan their financial strategies accordingly, knowing that their dividend income is secure.

For more insights, investors are encouraged to reach out directly to Invesco at their contact number, 1-800-341-2929, or visit their official website for ongoing updates.