Invesco Advisers, Inc. Announces Liquidation Details for Invesco High Income 2024 Target Term Fund

Rhea-AI Summary

Invesco Advisers, Inc., a subsidiary of Invesco (NYSE: IVZ), has announced details for the liquidation of Invesco High Income 2024 Target Term Fund (NYSE: IHTA). The Fund is set to terminate and liquidate on or about December 2, 2024. As it prepares for liquidation, the Fund will deviate from its stated investment strategy, moving assets to high-quality, short-term securities, U.S. Treasury securities, and cash equivalents. As of October 21, 2024, the Fund's portfolio consisted of approximately 100% cash and cash equivalents.

The Fund's objective to return the original NAV of $9.835 per share to common shareholders on the Termination Date is not expected to be met. As of October 18, 2024, the Fund's NAV per share was $7.71. Trading of common shares on the NYSE will continue through November 25, 2024, and be suspended from November 26, 2024. A final liquidating distribution is anticipated on or about the Termination Date.

Positive

• Fund liquidation provides clarity and a definite timeline for investors
• 100% of portfolio already converted to cash and cash equivalents, reducing market risk

Negative

• Fund will not meet its objective of returning the original NAV of $9.835 per share
• Current NAV per share of $7.71 represents a significant decrease from the original NAV
• Deviation from stated investment strategy may impact returns
• Shareholders may recognize taxable gains or losses upon liquidation

Insights

Financial Analyst

The liquidation of Invesco High Income 2024 Target Term Fund (IHTA) marks a significant event for investors. Key points to consider:

• The fund will deviate from its original investment strategy, moving to cash and short-term securities.
• As of October 21, 2024, the fund's portfolio was already 100% cash and cash equivalents.
• The fund's objective to return the original NAV of $9.835 per share will not be met, with the current NAV at $7.71 as of October 18, 2024.
• Trading will be suspended on November 26, 2024, with final liquidation expected around December 2, 2024.
• Investors should be aware of potential tax implications, as they may recognize gains or losses upon liquidation.

This liquidation highlights the risks associated with target-term funds and the impact of market conditions on fund performance. Investors should closely monitor communications from Invesco and consider consulting with financial advisors to manage the transition of their investments.

ATLANTA, Oct. 21, 2024 /PRNewswire/ -- Invesco Advisers, Inc., a subsidiary of Invesco Ltd. (NYSE: IVZ), announced today additional details concerning the liquidation of Invesco High Income 2024 Target Term Fund (NYSE: IHTA) (the "Fund"). In accordance with its investment objectives and organizational documents, the Fund plans to terminate and liquidate on or about December 2, 2024 (the "Termination Date").

As the Fund prepares for its liquidation on the Termination Date, the Fund will deviate from its stated investment strategy and policies, which are to primarily invest in securities collateralized by loans secured by real properties and other real estate related debt securities. Instead, the Fund's portfolio managers will continue to move the Fund's assets to high quality, short-term securities and U.S. Treasury securities, and cash and cash equivalents. As of October 21, 2024, the Fund's portfolio consisted of approximately 100% cash and cash equivalents. 

The Fund's investment objectives are to provide a high level of current income and to return $9.835 per share (the original net asset value ("NAV") per Common Share before deducting offering costs of $0.02 per share) ("Original NAV") to common shareholders on the Termination Date. As previously disclosed, based on current market conditions, management anticipates that the Fund's objective of returning the Original NAV to common shareholders on or about the Termination Date will not be met. The objective to return the Fund's Original NAV is not an express or implied guarantee obligation of the Fund and is dependent on a number of factors. As of October 18, 2024, the Fund's NAV per share was $7.71.

The Fund's common shares will continue trading on the New York Stock Exchange through November 25, 2024 and will be suspended from trading before the open of trading on November 26, 2024. The Fund will declare its regular monthly distribution in November 2024 and expects that all other accumulated earnings will be included in the final liquidating distribution. The Fund anticipates making its final liquidating distribution on or about the Termination Date.

Shareholders may recognize a gain or loss for U.S. tax purposes as a result of the liquidation of the Fund. Invesco does not provide tax advice; shareholders should consult a professional tax advisor regarding their specific tax situation.

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 Fund.

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 $1.7 trillion in assets on behalf of clients worldwide as of June 30, 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 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

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

View original content to download multimedia:https://www.prnewswire.com/news-releases/invesco-advisers-inc-announces-liquidation-details-for-invesco-high-income-2024-target-term-fund-302282273.html

SOURCE Invesco Ltd.

FAQ

When will the Invesco High Income 2024 Target Term Fund (IHTA) be liquidated?

The Invesco High Income 2024 Target Term Fund (IHTA) is scheduled to be liquidated on or about December 2, 2024.

What is the current NAV per share of IHTA as of October 18, 2024?

As of October 18, 2024, the NAV per share of IHTA was $7.71.

Will IHTA meet its objective of returning the original NAV of $9.835 per share?

No, based on current market conditions, management anticipates that IHTA will not meet its objective of returning the original NAV of $9.835 per share to common shareholders on the Termination Date.

When will IHTA stop trading on the New York Stock Exchange?

IHTA will continue trading on the NYSE through November 25, 2024, and will be suspended from trading before the open of trading on November 26, 2024.