Invesco Closed-End Funds Pay Dividends
The Board of Trustees of Invesco High Income Trust II (NYSE: VLT) and Invesco Senior Income Trust (NYSE: VVR) announced dividends for May 2024. Effective August 1, 2018, VLT adopted a Managed Distribution Plan, establishing a fixed monthly distribution rate of 8.5% based on the closing market price. VVR increased its monthly dividend to $0.043 per share from $0.039 effective October 1, 2023.
For May 2024, VLT’s distribution per common share comprises 60.06% net investment income ($0.0579) and 39.94% return of principal ($0.0385). VVR’s distribution includes 73.02% net investment income ($0.0314) and 26.98% return of principal ($0.0116). Fiscal Year-to-date distributions for VLT and VVR are $0.1928 and $0.0860 per share, respectively, with significant portions being return of capital and investment income.
Investment performance metrics for March 1, 2024 to April 30, 2024 indicate a fiscal year-to-date total return of 11.08% for VLT and 14.18% for VVR. Current annualized distribution rates are 10.24% for VLT and 12.71% for VVR. Past performance is not indicative of future results and dividend amounts may vary.
- Invesco High Income Trust II (VLT) maintains a fixed monthly distribution rate of 8.5%, providing predictable monthly income.
- Invesco Senior Income Trust (VVR) increased its monthly dividend to $0.043 per share, enhancing income for shareholders.
- Fiscal Year-to-date cumulative total returns are 11.08% for VLT and 14.18% for VVR, indicating strong fund performance.
- Both funds have substantial net investment income contributions in their distributions, with VLT at 60.06% and VVR at 73.02% for May 2024.
- Both funds' distributions contain significant return of capital (39.94% for VLT and 26.98% for VVR) which can be seen negatively as it may indicate fund underperformance.
- The actual amounts and sources of distributions are subject to change, adding uncertainty for shareholders.
- Potential future amendments or terminations of the Managed Distribution Plans could adversely affect the market price of the funds' shares.
- Distributions exceeding net investment income and realized gains suggest possible depletion of principal, potentially harming long-term performance.
EX-DATE | RECORD DATE | REINVEST DATE | PAYABLE DATE |
5/15/2024 | 5/16/2024 | 5/31/2024 | 5/31/2024 |
Name of Closed-End |
Ticker | Monthly | Change | % Change |
Invesco High Income Trust II | VLT | - | - | |
Invesco Senior Income Trust | VVR | - | - |
Effective August 1, 2018, the Board of Invesco High Income Trust II (NYSE: VLT) approved a Managed Distribution Plan (the "VLT Plan") for the Fund, whereby the Fund increased its monthly dividend to common shareholders to a stated fixed monthly distribution amount based on a distribution rate of 8.5 percent of the closing market price per share as of August 1, 2018, the date the VLT Plan became effective. The VVR Plan and the VLT Plan are collectively referred to herein as the "Plans."
The Board of Trustees (the "Board") of Invesco Senior Income Trust (NYSE: VVR) (the "Fund") approved an increase in the monthly distribution amount payable to common shareholders pursuant to the Fund's Managed Distribution Plan (the "Plan"). Effective October 1, 2023, the Fund will pay its monthly dividend to common shareholders at a stated fixed monthly distribution amount of
The following tables set forth the estimated amounts of the current distribution and the cumulative distributions paid this fiscal year to date from the sources indicated. You should not draw any conclusions about the Funds' investment performance from the amount of this distribution or from the terms of the Plans. All amounts are expressed per common share. Each Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of your distribution is estimated to be a return of capital. A return of capital may occur, for example,
when some or all of the money that you invested in a Fund is paid back to you. A return of capital distribution does not necessarily reflect the Funds' investment performance and should not be confused with "yield" or "income." The amounts and sources of distributions reported in the 19(a) Notice 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 on each Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. Each 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.
Fund | May 2024 | ||||||
Net Investment Income | Net Realized Capital | Estimated Return of | Total | ||||
Per | % of | Per | % of | Per | % of | ||
Invesco High Income | 60.06 % | 0.00 % | 39.94 % | ||||
Invesco Senior | 73.02 % | 0.00 % | 26.98 % | ||||
Fund | CUMULATIVE FISCAL YEAR-TO-DATE (YTD) April 30, 2024* | ||||||
Net Investment Income | Net Realized Capital | Return of Principal (or | Total FYTD | ||||
Per | % of 2024 | Per | % of 2024 | Per | % of 2024 | ||
Invesco High Income | 42.22 % | 0.00 % | 57.78 % | ||||
Invesco Senior | 88.37 % | 0.00 % | 11.63 % | ||||
* 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 Fund distributions for the fiscal year. The final determination of the source and tax characteristics of all distributions in 2024 will be made after the end of the year.
The monthly distributions are based on estimates and terms of each Fund's Plan. Monthly distribution amounts may vary from these estimates based on a multitude of factors. Changes in portfolio and market conditions may cause deviations from estimates. These estimates should not be taken as indication of a Fund's earnings and performance. The actual amounts and its sources may be subject to additional adjustments and will be reported after year end.
Each Fund's Performance and Distribution Rate Information disclosed in the table below is based on the Fund's net asset value per share (NAV). Shareholders should take note of the relationship between the Fiscal Year-to-date Cumulative Total Return with the Fund's Cumulative Distribution Rate and the Average Annual Total Return with the Fund's Current Annualized Distribution Rate. Each Fund's NAV is calculated as the total market value of all the securities and other assets held by the Fund minus the total liabilities, divided by the total number of shares outstanding. NAV performance may be indicative of a Fund's investment performance. The value of a shareholder's investment in each Fund is determined by the Fund's market price, which is based on the supply and demand for the Fund's shares in the open market.
Funds' Performance and Distribution Rate Information:
Fund | Fiscal Year-to-date March 1, 2024 to April 30, 2024 | Five year period ending | ||
FYTD | Cumulative | Current Rate 3 | Average Annual Total | |
Invesco High Income Trust | 11.08 % | 1.71 % | 10.24 % | 2.97 % |
Invesco Senior Income | 14.18 % | 2.12 % | 12.71 % | 5.96 % |
1 Fiscal year-to-date Cumulative Total Return assumes reinvestment of distributions. This is calculated as the percentage change in the Fund's NAV over the fiscal year-to-date time period including distributions paid and reinvested.
2 Cumulative Distribution Rate for the Fund's current fiscal period (March 1, 2024 to April 30, 2024) is calculated as the dollar value of distributions in the fiscal year-to-date period as a percentage of the Fund's NAV as of April 30, 2024.
3 The Current Annualized Distribution Rate is the current fiscal period's distribution rate annualized as a percentage of the Fund's NAV as of April 30, 2024.
4 Average Annual Total Return represents the compound average of the annual NAV Total Returns of the Fund for the five-year period ending April 30, 2024. Annual NAV Total Return is the percentage change in the Fund's NAV over a year including distributions paid and reinvested.
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 19(a) Notice disclosing the sources of its dividend payment when a distribution includes anything other than net investment income.
The Plans will be subject to periodic review by each Fund's Board, and a Fund's Board may terminate or amend the terms of its Plan at any time without prior notice to the Fund's shareholders. The amendment or termination of a Fund's Plan could have an adverse effect on the market price of such Fund's common shares.
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 additional information, shareholders of the closed end fund may contact
Beverly Khoo, 332-323-8029 beverly.khoo@invesco.com
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
—Invesco—
CONTACT: Closed-End Funds 800-341-2929
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SOURCE Invesco Ltd.
FAQ
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