#USA #Atlanta #Invesco High Income #Invesco Senior Income #VVR #VLT

Invesco Funds Declare Dividends and Adjustment in Distribution Plans

In a significant financial announcement on March 3, 2025, the Board of Trustees for both Invesco High Income Trust II and Invesco Senior Income Trust disclosed their recent dividend declarations. These funds, recognized as essential players in the investment landscape, have outlined their dividend distribution schedules alongside changes in their Managed Distribution Plans, aimed at benefiting their shareholders while maintaining transparency.

Dividend Declarations

According to the announcement, Invesco High Income Trust II (VLT) will distribute a monthly dividend of $0.09641 per share, while Invesco Senior Income Trust (VVR) has set its monthly dividend at $0.0380 per share. Both dividends are set to be payable on March 31, 2025, with the ex-date and record date also aligned on March 17, 2025. This distribution strategy aligns with the funds' ongoing commitment to provide reliable returns to investors.

Changes in Distribution Plans

Among the key updates disclosed was a modification to the monthly distribution amount for the Invesco Senior Income Trust. Starting January 1, 2025, the fund will reduce its fixed monthly dividend, which previously stood at $0.0430 per share. This adjustment reflects broader strategies in managing distribution approaches that focus on delivering consistent yet sustainable returns to investors.

For Invesco High Income Trust II, the approach remains rooted in its established Managed Distribution Plan initiated on August 1, 2018, which has been designed to reflect a distribution rate pegged to 8.5% of the share price, promoting stability while ensuring predictable payouts. Both plans are poised to bridge the gap between market prices and net asset value (NAV), although they do not guarantee precise results.

Understanding Managed Distribution Plans

The Managed Distribution Plans implemented by Invesco are crucial to providing regular cash flow to shareholders, irrespective of market fluctuations or timing of income realization. It allows both funds to maintain a steady stream of dividend payments, even in instances when external income is insufficient to meet distribution targets. Notably, if the available income isn't adequate, funds might resort to returning capital or distributing long-term capital gains to fulfill their distribution commitments, which could inadvertently lead to a return of capital for investors.

Shareholder Communication and Transparency

In compliance with regulatory obligations, shareholders of record will receive detailed notices accompanying distribution payments. These reports, known as 19(a) Notices, ensure clarity regarding the sources of dividend payments, especially when they include returns of capital. Such practices emphasize Invesco's dedication to transparent communication with its investors, fostering informed decision-making in their investment journeys.

As these funds navigate the ongoing complexities of market dynamics, it's vital for shareholders to remain aware of the potential implications of distribution modifications and capital returns, which may not accurately reflect underlying investment performance. Investors will also receive a Form 1099-DIV at the end of the tax year outlining how to report these distributions for federal income tax purposes.

Conclusion

Invesco's recent dividend announcements and adjustments to their Managed Distribution Plans underscore a robust commitment to maintaining shareholder value while adapting to industry conditions. Investors should keep abreast of these developments, considering how they may affect overall investment strategy and capital management moving forward.

For further inquiries regarding the distributions and fund performance, stakeholders can connect with Invesco's client service center. The overall investment landscape remains complex and dynamic, and staying informed is an investor's best strategy.

About Invesco Ltd.

Invesco Ltd. stands as a prominent independent investment management firm dedicated to enhancing the investment experience for individuals and institutions alike. With a global presence spanning over 20 countries, Invesco managed approximately $1.84 trillion in assets by December 31, 2024. Their comprehensive suite of active, passive, and alternative investment solutions reflects the firm's commitment to innovation and performance in a competitive market.