Invesco Closed-End Funds to Unify Dividend Reinvestment Plans

Jul 30, 2013, 11:41 ET from Invesco

ATLANTA, July 30, 2013 /PRNewswire/ -- Invesco announced today that Invesco Advantage Municipal Income Trust II (VKI), Invesco Bond Fund (VBF), Invesco California Value Municipal Income Trust (VCV), Invesco Dynamic Credit Opportunities Fund (VTA), Invesco High Income Trust II (VLT), Invesco Municipal Trust (VKQ), Invesco Municipal Income Opportunities Trust (OIA), Invesco Municipal Opportunity Trust (VMO), Invesco Pennsylvania Value Municipal Income Trust (VPV), Invesco Quality Municipal Income Trust (IQI), Invesco Senior Income Trust (VVR), Invesco Trust for Investment Grade Municipals (VGM), Invesco Trust for Investment Grade New York Municipals (VTN) and Invesco Value Municipal Income Trust (IIM) (the "Funds") are amending certain terms of their Dividend Reinvestment Plans.  The amendments to the Dividend Reinvestment Plans will become effective September 3, 2013.  Upon effectiveness of these amendments, the Funds will utilize a uniform Dividend Reinvestment Plan (the "Plan"). 

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Certain Plan changes are summarized below.

"Opt-Out" Feature

OIA, IIM, IQI, VKI, VBF, VCV, VMO, VKQ, VPV, VGM, VTN and VVR are amending their Plans to adopt "Opt-Out" plans.  VTA and VLT already have "Opt-Out" plans.  Under an "Opt-Out" plan, new shareholders in a Fund will be automatically enrolled in the Plan unless otherwise designated by the shareholder when the shares are purchased.  If at any time a shareholder does not want to participate in the Plan and would like to receive dividends and capital gains distributions ("Distributions") in cash, such shareholder may contact Invesco to withdraw from the Plan.  Shareholders of all Funds that are not currently enrolled in the Plan will continue to receive cash Distributions. 

Share Purchase Price for Participants

OIA, IIM, IQI, VLT and VVR are amending their Plans to provide for the purchase of shares at a reduced price when the Fund's common shares are trading at a premium.  Distributions will be promptly reinvested for Plan participants.  If a Fund's common shares are trading at a share price that is equal to its net asset value ("NAV"), participants will pay that amount for their reinvested shares.  If a Fund's common shares are trading at a premium (a market price that is higher than its NAV), participants will pay either the NAV or 95 percent of the market price, whichever is greater.  If a Fund's common shares are trading at a discount (a market price that is lower than its NAV), participants will pay the market price for their reinvested shares.  VKI, VBF, VCV, VTA, VKQ, VMO, VPV, VGM and VTN already offer this feature. 

Service Fee for Share Sales

OIA, IIM and IQI are amending their Plans to implement a service fee for share sales.  If a participant withdraws from the Plan and opts to sell their common shares through Computershare Trust Company, N.A. (the "Agent"), the Agent will sell all full and fractional shares and send the proceeds to such participant after deducting a $2.50 service fee and per share fees.  Per share fees include any applicable brokerage commissions the Agent is required to pay.  VKI, VBF, VCV, VTA, VLT, VKQ, VMO, VPV, VVR, VGM and VTN already impose such service fees.

Small Account Termination

Each Fund is amending its Plan to provide that a Fund may cause the Agent to terminate Plan accounts holding less than a designated number of shares, upon notice to such participants, in which case the Agent will arrange for the sale of such shares and send such participants the proceeds, less applicable fees.

Governing Law

OIA, IIM, IQI, VKI, VBF, VCV, VLT, VMO, VKQ, VPV, VGM, VTN and VVR are amending their Plans to provide that the terms and conditions of the Plan shall be governed by the laws of the state of Delaware.  VTA's Plan will continue to be governed by the laws of the state of Delaware. 

The full version of the Plan will be available on

Investing involves risk and it is possible to lose money on any investment in the funds.

About Invesco Ltd.
Invesco Ltd. is a leading independent global investment management firm, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the firm is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at

Invesco Advisers, Inc. is an investment adviser; it provides investment advisory services to individual and institutional clients and does not sell securities. Invesco Distributors, Inc. is the U.S. distributor for Invesco Ltd.'s retail mutual funds, exchange-traded funds and institutional money market funds and the subdistributor for its STIC Global Funds. Both Invesco Advisers, Inc. and Invesco Distributors, Inc. are wholly owned, indirect subsidiaries 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.


SOURCE Invesco