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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.