ATLANTA, June 16, 2021 /PRNewswire/ -- Invesco Advisers,
Inc. (the "Adviser"), a subsidiary of Invesco Ltd. (NYSE: IVZ),
announced today that the Board of Trustees (the "Board") of Invesco
Dynamic Credit Opportunities Fund (NYSE: VTA) (the "Fund") recently
approved changes to the Fund's investment policy effective on or
about June 16, 2021. These changes
will permit the Fund to invest up to 20% of its total assets in
equity securities without restriction on the types of equity
securities that may be purchased.
Accordingly, the Fund's investment policy regarding its ability
to invest in equities is revised to reflect that the Fund may
invest up to 20% of its total assets in equity securities
(including common stocks, preferred stocks, rights, warrants, and
securities convertible into common stock). Under the prior
investment policy, the Fund's investment in equity securities was
limited to equity securities obtained through debt restructurings
or bankruptcy proceedings.
In connection with the investment policy change above, the Fund
will be subject to the following risks:
Common Stock and Other Equity
Investments. Equity securities include common stock,
preferred stock, rights, warrants and certain securities that are
convertible into common stock. Stocks and other equity securities
fluctuate in price in response to changes to equity markets in
general and those fluctuations may affect the value of the Fund's
portfolio. Stock markets may experience significant short-term
volatility and may fall or rise sharply at times. Adverse events in
any part of the equity or fixed-income markets may have unexpected
negative effects on other market segments. Different stock markets
may behave differently from each other. A variety of factors,
including, but not limited to, poor earnings reports, loss of
customers, litigation, unfavorable performance and changes in
government regulations, can negatively affect the price of a
particular company's stock. To the extent that securities of a
particular type are emphasized (for example foreign stocks, stocks
of small- or mid-cap companies, growth or value stocks, or stocks
of companies in a particular industry) their share values may
fluctuate more in response to events affecting the market for that
type of security. Common stock represents an ownership interest in
a company.
Preferred stock has a set dividend
rate and ranks ahead of common stocks and behind debt securities in
claims for dividends and for assets of the issuer in a liquidation
or bankruptcy. The fixed dividend rate of preferred stocks
may cause their prices to behave more like those of debt
securities. If prevailing interest rates rise, the fixed dividend
on preferred stock may be less attractive, which may cause the
price of preferred stock to decline.
Warrants are options to purchase
equity securities at specific prices that are valid for a specific
period of time. Their prices do not necessarily move parallel to
the prices of the underlying securities and can be more volatile
than the price of the underlying securities. If the market price of
the underlying security does not exceed the exercise price during
the life of the warrant, the warrant will expire worthless and any
amount paid for the warrant will be lost. The market for warrants
may be very limited and it may be difficult to sell a warrant
promptly at an acceptable price. Rights are similar to warrants,
but normally have a short duration and are distributed directly by
the issuer to its shareholders. Rights and warrants have no voting
rights, receive no dividends and have no rights with respect to the
assets of the issuer.
Convertible securities can be
converted into or exchanged for a set amount of common stock of an
issuer within a particular period of time at a specified price or
according to a price formula. Convertible debt securities pay
interest and convertible preferred stocks pay dividends until they
mature or are converted, exchanged or redeemed. Some convertible
debt securities may be considered "equity equivalents" because of
the feature that makes them convertible into common stock. The
conversion feature of convertible securities generally causes the
market value of convertible securities to rise and fall when the
value of the underlying common stock rises and falls. Convertible
securities may provide more income than common stock but they
generally provide less income than comparable non-convertible debt
securities. Most convertible securities will vary, to some extent,
with changes in the price of the underlying common stock and are
therefore subject to the risks of that stock. In addition,
convertible securities may be subject to the risk that the issuer
will not be able to pay interest or dividends when due, and their
market value may change based on changes in the issuer's credit
rating or the market's perception of the issuer's creditworthiness.
Some convertible preferred stocks have a mandatory conversion
feature or a call feature that allows the issuer to redeem the
stock on or prior to a mandatory conversion date. Those features
could diminish the potential for capital appreciation on the
investment.
Warrants, Equity Securities and
Junior Debt Securities of the Borrower. Warrants, equity
securities and junior debt securities have a subordinate claim on a
Borrower's assets as compared with Senior Loans. As a result,
the values of warrants, equity securities and junior debt
securities generally are more dependent on the financial condition
of the Borrower and less dependent on fluctuations in interest
rates than are the values of many debt securities. The values of
warrants, equity securities and junior debt securities may be more
volatile than those of Senior Loans and thus may increase the
volatility of the Fund's net asset value. Additionally, warrants
may be significantly less valuable on their relevant expiration
date resulting in a loss of money or they may expire worthless
resulting in a total loss of the investment. Warrants may also be
postponed or terminated early resulting in a partial or total loss
of the investment. Warrants may also be illiquid.
The Adviser believes that by implementing these changes, the
Adviser will be better able to manage the Fund's portfolio in the
best interests of its shareholders and to meet the Fund's
investment objective. The Fund is not changing its investment
objective, which is to seek a high level of current income, with a
secondary objective of capital appreciation.
A discussion of the Fund's investment strategies and associated
risks will be included in the Fund's next annual report to
shareholders.
_____________________________________
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 $1.4 trillion in assets on behalf of clients
worldwide as of March 31, 2021.
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
—Invesco—
CONTACT: Jeaneen Terrio
212-278-9205 Jeaneen.Terrio@invesco.com
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