Invesco Announces New Dividends for High Income Trust II and Senior Income Trust
Invesco Ltd., a major global investment management firm, has recently made headlines by declaring dividends for its closed-end funds, notably Invesco High Income Trust II and Invesco Senior Income Trust. This announcement provides shareholders with important details regarding upcoming dividends, marking a significant moment for investors in these funds.
On January 2, 2025, the Board of Trustees for both trusts declared dividends which will be effective starting January 31, 2025. The ex-dividend date, which is crucial for investors wishing to receive the upcoming distribution, is set for January 17, 2025. Invesco High Income Trust II will provide a fixed monthly dividend amount of $0.09641 per share, maintaining its previous distribution rate. Conversely, the Invesco Senior Income Trust, which operates under a different managed distribution plan, has announced a decrease in its monthly dividend amount from $0.0430 to $0.0380 per share – reflecting a 12% reduction.
These dividends are part of broader managed distribution plans implemented by Invesco. The Invesco High Income Trust II employs a plan based on an 8.5% distribution rate calculated from the closing market price as of August 1, 2018. Both investment trusts aim to provide consistent cash payments to shareholders, albeit these payments are not guaranteed. The organizations recognize the necessity of being transparent with the shareholders about how their funds are performing and the necessity of maintaining the stated dividend payments.
The managed distribution plans are designed to provide periodic cash payments regardless of the income generated or capital gains realized by the funds. However, it's important to understand that if the funds’ regular investment returns fall short of covering the intended monthly distributions, they may have to distribute long-term capital gains or return capital as part of the managed distribution strategy. Shareholders are thus cautioned that part of the distributions may represent a return of the original capital investment, not derived from realized investment profits.
This return of capital may not accurately reflect the performance of the funds and should be carefully considered by investors. It’s essential for current and potential shareholders to comprehend these dynamics and stay informed about the implications of such distributions.
Invesco's approach allows the firms to narrow any discounts that may occur between the funds' market price and their net asset value (NAV); however, there is no guarantee that this strategy will be effective. As mandated by regulatory standards, the funds will issue a 19(a) Notice each time a payment includes anything beyond net investment income. This notice will offer details on the source of the dividends, allowing investors to better understand the nature of their distributions for tax purposes. The firm will send out Form 1099-DIV at the end of the year to assist shareholders in accurately reporting these dividends to the tax authorities.
Further details, including information about the 19(a) Notices, can be accessed through Invesco's official website. Shareholders should be aware that the sources and amounts reported in the 19(a) Notices remain estimates and can change depending on the actual investment returns experienced by the funds throughout the fiscal year.
As noted repeatedly, investing in closed-end funds involves certain risks, and the potential for losing money is a critical consideration. Prices of common shares may fluctuate in the market, trading either at a premium or discount compared to their NAV.
For inquiries related to investments in these trusts or to gain further insight into the funds' strategies, shareholders can contact Invesco directly at their dedicated support line. With over $1.79 trillion in assets managed as of September 2024, Invesco remains committed to delivering valuable investment experiences for its clientele worldwide.
On January 2, 2025, the Board of Trustees for both trusts declared dividends which will be effective starting January 31, 2025. The ex-dividend date, which is crucial for investors wishing to receive the upcoming distribution, is set for January 17, 2025. Invesco High Income Trust II will provide a fixed monthly dividend amount of $0.09641 per share, maintaining its previous distribution rate. Conversely, the Invesco Senior Income Trust, which operates under a different managed distribution plan, has announced a decrease in its monthly dividend amount from $0.0430 to $0.0380 per share – reflecting a 12% reduction.
These dividends are part of broader managed distribution plans implemented by Invesco. The Invesco High Income Trust II employs a plan based on an 8.5% distribution rate calculated from the closing market price as of August 1, 2018. Both investment trusts aim to provide consistent cash payments to shareholders, albeit these payments are not guaranteed. The organizations recognize the necessity of being transparent with the shareholders about how their funds are performing and the necessity of maintaining the stated dividend payments.
The managed distribution plans are designed to provide periodic cash payments regardless of the income generated or capital gains realized by the funds. However, it's important to understand that if the funds’ regular investment returns fall short of covering the intended monthly distributions, they may have to distribute long-term capital gains or return capital as part of the managed distribution strategy. Shareholders are thus cautioned that part of the distributions may represent a return of the original capital investment, not derived from realized investment profits.
This return of capital may not accurately reflect the performance of the funds and should be carefully considered by investors. It’s essential for current and potential shareholders to comprehend these dynamics and stay informed about the implications of such distributions.
Invesco's approach allows the firms to narrow any discounts that may occur between the funds' market price and their net asset value (NAV); however, there is no guarantee that this strategy will be effective. As mandated by regulatory standards, the funds will issue a 19(a) Notice each time a payment includes anything beyond net investment income. This notice will offer details on the source of the dividends, allowing investors to better understand the nature of their distributions for tax purposes. The firm will send out Form 1099-DIV at the end of the year to assist shareholders in accurately reporting these dividends to the tax authorities.
Further details, including information about the 19(a) Notices, can be accessed through Invesco's official website. Shareholders should be aware that the sources and amounts reported in the 19(a) Notices remain estimates and can change depending on the actual investment returns experienced by the funds throughout the fiscal year.
As noted repeatedly, investing in closed-end funds involves certain risks, and the potential for losing money is a critical consideration. Prices of common shares may fluctuate in the market, trading either at a premium or discount compared to their NAV.
For inquiries related to investments in these trusts or to gain further insight into the funds' strategies, shareholders can contact Invesco directly at their dedicated support line. With over $1.79 trillion in assets managed as of September 2024, Invesco remains committed to delivering valuable investment experiences for its clientele worldwide.
Topics Financial Services & Investing）
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