Invesco Advisers, Inc. Announces Decrease in Monthly Distribution for Invesco Senior Income Trust
Rhea-AI Summary
Invesco Senior Income Trust (NYSE: VVR) announced a decrease in its monthly distribution amount under its Managed Distribution Plan. Starting January 1, 2025, the monthly dividend will decrease from $0.0430 to $0.0380 per share, effective for the January 31, 2025 payment.
The Plan aims to provide consistent periodic cash payments to shareholders, regardless of when income is earned or capital gains realized. While it may help narrow the discount between market price and NAV, this is not guaranteed. If investment income is insufficient, the Fund may distribute long-term capital gains or return capital to maintain distribution levels. The Board retains the right to terminate or amend the Plan, which could affect the Fund's common shares market price.
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- Monthly distribution decreased by 11.6% (from $0.0430 to $0.0380 per share)
- Fund may need to distribute capital gains or return capital if investment income is insufficient
- Plan amendment or termination could adversely affect share market price
News Market Reaction 1 Alert
On the day this news was published, IVZ declined 1.60%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
The Plan is intended to provide shareholders with a consistent, but not guaranteed, periodic cash payment from the Fund, regardless of when or whether income is earned, or capital gains are realized. The Plan may have the effect of narrowing the discount between the Fund's market price and the net asset value ("NAV") of the Fund's common shares, but there is no assurance that the Plan will be effective in this regard.
If the Fund's investment income is not sufficient to cover the Fund's intended monthly distribution, the Fund will distribute long-term capital gains and/or return of capital in order to maintain its managed distribution level under the Plan. The Fund may at times distribute more than its income and net realized gains; therefore, a portion of the distribution may result in a return of capital. A return of capital may occur, for example, when some or all of the money that shareholders invested in the Fund is paid back to them. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." No conclusions should be drawn about the Fund's investment performance from the amount of the Fund's distributions or from the terms of the Plan.
In order to comply with the requirements of Section 19 of the Investment Company Act of 1940 and an exemptive order granted to the Fund by the Securities and Exchange Commission, the Fund will provide its shareholders of record on each distribution date with a 19(a) Notice and issue an accompanying press release disclosing the sources of its dividend payment when a distribution includes anything other than net investment income.
The amounts and sources of distributions reported in 19(a) Notices are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its full fiscal year and may be subject to changes based on tax regulations. The Fund will send shareholders a Form 1099-DIV for the calendar year that will tell them how to report these distributions for federal income tax purposes. Information on the Fund's 19(a) Notices can be found at www.invesco.com.
The final determination of the source and tax characteristics of all distributions in 2025 will be made after the end of the year.
The Plan is subject to periodic review by the Board, and the Board may terminate or amend the terms of the Plan at any time without prior notice to the Fund's shareholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund's common shares.
The amount of dividends paid by the Fund may vary from time to time. Past amounts of dividends are no guarantee of future dividend payment amounts.
Investing involves risk and it is possible to lose money on any investment in the Fund.
For additional information, shareholders of the closed end fund may call Invesco at 800-341-2929.
About Invesco Ltd.
Invesco Ltd. is a global independent investment management firm dedicated to delivering an investment experience that helps people get more out of life. Our distinctive investment teams deliver a comprehensive range of active, passive and alternative investment capabilities. With offices in more than 20 countries, Invesco managed
Invesco Distributors, Inc. is the
Note: There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply.
NOT A DEPOSIT l NOT FDIC INSURED l NOT GUARANTEED BY THE BANK | MAY LOSE VALUE | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
CONTACT: Closed-End Funds 800-341-2929
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SOURCE Invesco Ltd.
FAQ
What is the new monthly distribution amount for Invesco Senior Income Trust (VVR) starting January 2025?
When will the first reduced distribution payment for VVR take effect?
How much did IVZ reduce VVR's monthly distribution by?
What happens if VVR's investment income doesn't cover the monthly distribution?
How will VVR shareholders be informed about the tax characteristics of their distributions?
