Invesco Advisers, Inc. Announces Termination of Managed Distribution Plans for Invesco High Income Trust II and Invesco Senior Income Trust

Rhea-AI Summary

Invesco Advisers (NYSE: IVZ) announced the immediate termination of Managed Distribution Plans for two funds: Invesco High Income Trust II (NYSE: VLT) and Invesco Senior Income Trust (NYSE: VVR). The VLT Plan previously provided fixed monthly distributions based on an 8.5% distribution rate of the closing market price as of August 1, 2018, while VVR paid $0.0380 per share monthly.

The Plans were designed to provide consistent periodic cash payments to shareholders, utilizing long-term capital gains and/or return of capital when investment income was insufficient. The Board's decision to terminate the Plans could adversely affect the funds' market prices. Future distributions will be declared alongside other Invesco closed-end funds.

Positive

• None.

Negative

• Termination of guaranteed monthly distribution plans for two funds
• Potential adverse effect on market price of both funds' common shares
• Loss of consistent periodic cash payment guarantee for shareholders

ATLANTA, March 20, 2025 /PRNewswire/ -- Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today that, effective immediately, the Board of Trustees ("Board") of each of Invesco High Income Trust II (NYSE: VLT) and Invesco Senior Income Trust (NYSE: VVR) (each, a "Fund" and collectively, the "Funds") terminated the Managed Distribution Plan for each Fund (individually, the "VLT Plan" and "VVR Plan" and collectively, the "Plans").

Pursuant to the VLT Plan, VLT paid a stated fixed monthly distribution amount based on a distribution rate of 8.5% of the closing market price per share as of August 1, 2018, the date the VLT Plan became effective. Pursuant to the VVR Plan, VVR paid a monthly distribution amount of $0.0380 per share. 

The Plans were intended to provide shareholders with a consistent, but not guaranteed, periodic cash payment from each Fund, regardless of when or whether income was earned, or capital gains were realized. Under the Plans, each Fund distributed long-term capital gains and/or return of capital to shareholders to maintain its monthly distribution level if sufficient investment income was not available.  As previously provided, the Plans were subject to periodic review by each Fund's Board, and each Fund's Board could terminate or amend the terms of the respective Plan at any time.  After consideration of a variety of factors, the Board of each Fund determined that terminating each Fund's Plan was advisable.  The termination of the Plans could have an adverse effect on the market price of the Funds' common shares. Future distributions for each Fund will be declared together with each of the Invesco closed-end funds. No conclusions should be drawn about a Fund's investment performance from the amount of a Fund's distributions or from the termination of the Plans.

Form 1099-DIV for the calendar year will report distributions for federal income tax purposes.  Each Fund's annual report to shareholders will include information regarding the tax character of a Fund's distributions for the fiscal year.

The final determination of the source and tax characteristics of all distributions in 2025 for the Funds will be made after the end of the year.

In order to comply with the requirements of Section 19 of the Investment Company Act of 1940, each Fund will provide its shareholders of record on the record date with a Section 19 Notice disclosing the sources of its dividend payment when a distribution includes anything other than net investment income. The Section 19 Notice is not provided for tax reporting purposes but for informational purposes only. If applicable, this Section 19 Notice information can be found on a Fund's website at www.invesco.com.

The amount of dividends paid by each 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 Funds.

For more information, call 1-800-341-2929.

This communication is not intended to, and shall not, constitute an offer to purchase or sell shares of any of the Invesco Funds, including the Funds.

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 Ltd. managed $1.85 trillion in assets on behalf of clients worldwide as of December 31, 2024. For more information, visit www.invesco.com.

Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail products. Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Each entity is a wholly owned, indirect subsidiary of Invesco Ltd.

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 net asset value. 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

Media Relations Contact: Matthew Chisum,
Matthew.Chisum@invesco.com, 212-652-4368

 

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SOURCE Invesco Ltd.

FAQ

What are the implications of IVZ terminating the Managed Distribution Plans for VLT and VVR shareholders?

The termination could adversely affect the funds' market prices and changes how distributions will be made, no longer guaranteeing consistent monthly payments.

What was the previous distribution rate for Invesco High Income Trust II (VLT) under the terminated plan?

VLT paid monthly distributions based on 8.5% of the closing market price as of August 1, 2018.

How much was the monthly distribution for Invesco Senior Income Trust (VVR) before the plan termination?

VVR paid a fixed monthly distribution of $0.0380 per share.

When did Invesco (IVZ) implement these changes to the distribution plans?

The changes were implemented immediately as of March 20, 2025.