Invesco Value Municipal Income Trust (IIM)
Frequently Asked Questions About Invesco Value Municipal Income Trust (IIM)
Does IIM offer a DRIP (Dividend Reinvestment Plan)?
Yes, Invesco Value Municipal Income Trust often offers a Dividend Reinvestment Plan (DRIP) which allows investors to reinvest their distributions into additional shares of the fund, potentially compounding their investment over time without incurring transaction fees.
How can investors purchase shares of IIM?
Investors can purchase shares of Invesco Value Municipal Income Trust through a brokerage account. Shares are traded on the New York Stock Exchange under the ticker symbol 'IIM'. Investors can buy or sell shares like any publicly traded stock, subject to market price fluctuations.
How do interest rate changes affect IIM?
Interest rate changes can significantly affect Invesco Value Municipal Income Trust’s net asset value and market price. Generally, as interest rates rise, the value of existing bonds falls, which may lead to a decrease in the fund’s share price. Conversely, falling interest rates generally lead to increased bond values.
How does IIM generate income for its shareholders?
IIM generates income for its shareholders primarily through the interest earned on the municipal bonds and securities within its investment portfolio. The fund focuses on high-quality debt securities that provide a reliable income stream.
How often does Invesco Value Municipal Income Trust pay distributions?
Invesco Value Municipal Income Trust typically pays distributions on a monthly basis. The amount and frequency of distributions are determined by the fund's earnings and can change depending on market conditions.
Is Invesco Value Municipal Income Trust a good investment?
Whether Invesco Value Municipal Income Trust is a good investment depends on individual investors' financial goals, risk tolerance, and tax situation. It may be suitable for investors seeking tax-exempt income and having a conservative investment outlook.
What are municipal securities?
Municipal securities are debt instruments issued by state and local governments or their agencies to finance public projects, like schools, highways, or utilities. The interest income from these securities is often exempt from federal income tax, making them appealing to investors in higher tax brackets.
What are the risks associated with investing in IIM?
Investing in IIM involves several risks, including interest rate risk, credit risk, and market risk. Changes in interest rates can affect the value of municipal bonds, while credit risk pertains to the ability of the municipal issuer to meet its obligations. Market risk involves fluctuations in the fund's share price.
What are the tax implications of investing in IIM?
Investing in Invesco Value Municipal Income Trust can yield tax-exempt income, as the distributions from the municipal bonds held by the fund are often exempt from federal income tax. However, investors should consult with a tax advisor to understand specific tax implications related to their personal circumstances.
What does Invesco Value Municipal Income Trust do?
Invesco Value Municipal Income Trust is a closed-end fund that primarily invests in a diversified portfolio of municipal securities. These securities are issued by various state and local governments, with the aim of providing investors with a high level of current income exempt from federal income tax.
What is a closed-end fund?
A closed-end fund is a type of investment fund that raises a fixed amount of capital through an initial public offering (IPO) and then trades on stock exchanges. Unlike open-end funds, closed-end funds do not issue new shares or redeem existing shares daily, which can lead to trading at a premium or discount to the net asset value.
What is the expense ratio of Invesco Value Municipal Income Trust?
As of the latest available data, Invesco Value Municipal Income Trust has an expense ratio that reflects the operating costs of managing the fund. Investors should check the fund's most recent reports for the exact percentage, as it may fluctuate over time.
What is the historical performance of IIM?
Historical performance data for Invesco Value Municipal Income Trust can provide insight into its returns over various timeframes. Investors should review the fund's performance charts and reports to evaluate its past performance against benchmarks and peers.
What is the investment objective of IIM?
The investment objective of Invesco Value Municipal Income Trust is to provide current income exempt from federal income tax while maintaining capital preservation. The fund seeks to invest in high-quality municipal bonds to achieve this objective.
What is the net asset value (NAV) of IIM?
The net asset value (NAV) of Invesco Value Municipal Income Trust represents the total value of the fund's assets minus its liabilities, divided by the number of outstanding shares. It is an important metric that can help investors assess whether shares are trading at a premium or discount to their value.
What kind of investors would benefit from IIM?
Investors who may benefit from IIM include those looking for a steady stream of tax-exempt income, particularly individuals in higher tax brackets, those seeking relative stability in their investment portfolios, and conservative investors focused on capital preservation.
When was Invesco Value Municipal Income Trust established?
Invesco Value Municipal Income Trust was established in 2003. Since then, it has been managed by Invesco, a leading global investment management firm.
Where can investors find information on IIM's performance?
Investors can find information on Invesco Value Municipal Income Trust's performance on financial news websites, brokerage platforms, and the Invesco website, which provides performance data, portfolio holdings, and market commentary for its funds.
Who manages Invesco Value Municipal Income Trust?
The fund is managed by Invesco Ltd., a global asset management firm with a significant presence in the investment industry. It utilizes professional portfolio management teams to select and manage the investments within IIM.
What is the current price of Invesco Value Municipal Income Trust?
The current price of Invesco Value Municipal Income Trust is 11.64
When was Invesco Value Municipal Income Trust last traded?
The last trade of Invesco Value Municipal Income Trust was at 4:10 pm EDT on April 7th, 2025