Invesco Closed-End Funds Pay Dividends
The Board of Trustees of Invesco High Income Trust II (VLT) and Invesco Senior Income Trust (VVR) announced dividend payments effective September 30, 2022. VLT will distribute $0.0964 per share, while VVR will pay $0.0260 per share. The ex-dividend date is September 14, 2022, with a record date of September 15, 2022. Both funds operate under a Managed Distribution Plan, which allows for fixed monthly distributions. Note that part of these distributions may be a return of capital rather than net income.
- Monthly dividends reaffirmed for VLT at $0.0964 and VVR at $0.0260 enhances shareholder income.
- Managed Distribution Plans (MDPs) in place provide consistent income to shareholders.
- Distributions include a return of capital, which may raise concerns about sustainability.
- Both funds reported negative cumulative total returns, -9.55% for VLT and -3.25% for VVR, indicating potential investment risks.
ATLANTA, Sept. 30, 2022 /PRNewswire/ -- The Board of Trustees (the "Board") of each of Invesco High Income Trust II and Invesco Senior Income Trust (each, a "Fund" and collectively, the "Funds") today announces the payment of the following dividends:
EX-DATE | RECORD DATE | REINVEST DATE | PAYABLE DATE | |||
Name of Closed-End |
Ticker | Dividend Amount | Change From | |||
Invesco High Income Trust II | VLT | - | ||||
Invesco Senior Income Trust | VVR | - | ||||
1 | A portion of this distribution is estimated to be from a return of principal rather than net income. The Section 19 notice referenced below provides more information and can be found on the Invesco website at www.invesco.com. |
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 April 1, 2022, 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 | September 2022 | ||||||
Net Investment | Net Realized Capital | Estimated Return of | Total | ||||
Per | % of | Per Share | % of | Per | % of | ||
Invesco High Income | 60.37 % | 0.00 % | 39.63 % | ||||
Invesco Senior | 100.00 % | 0.00 % | 0.00 % | ||||
Fund | CUMULATIVE FISCAL YEAR-TO-DATE (YTD) August 31, 2022* | ||||||
Net Investment | Net Realized Capital | Return of Principal (or | Total FYTD | ||||
Per | % of 2022 | Per Share | % of 2022 | Per | % of 2022 | ||
Invesco High Income | 91.15 % | 0.00 % | 8.85 % | ||||
Invesco Senior | 100.00 % | 0.00 % | 0.00 % | ||||
* | 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 2022 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, 2022 to August | Five year period ending | ||
FYTD | Cumulative | Current | Average Annual Total | |
Invesco High Income | -9.55 % | 4.84 % | 9.67 % | 2.09 % |
Invesco Senior Income | -3.25 % | 3.53 % | 7.19 % | 4.23 % |
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, 2022 to August 31, 2022) 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 August 31, 2022. |
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 August 31, 2022. |
4 | Average Annual Total Return represents the compound average of the annual NAV Total Returns of the Fund for the five-year period ending August 31, 2022. 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 call Invesco at 800-983-0903.
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
For more information, visit www.invesco.com.
Invesco Distributors, Inc. is the US distributor for Invesco Ltd. It is an indirect, wholly owned, subsidiary of Invesco Ltd.
Note: There is no assurance that a closed-end fund will achieve its investment objective. 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 l MAY LOSE VALUE l NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
CONTACT: Jeaneen Terrio 212-278-9205 Jeaneen.Terrio@invesco.com
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SOURCE Invesco Ltd.
FAQ
What are the dividend amounts for VLT and VVR in September 2022?
What are the ex-dividend and record dates for the dividends?
What is a return of capital in the context of these dividends?
What is the Managed Distribution Plan for VLT and VVR?
