HOUSTON, July 12, 2011 /PRNewswire/ -- Invesco Advisers,
Inc. ("Invesco") and the Boards of Trustees (the "Board") of each
of the Invesco closed-end funds identified below (the "Funds")
today announced that the Board has determined to reject the demands
contained in the demand letters received by each Fund related to
the Fund's redemption of auction rate preferred shares
("ARPS").
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)
As previously announced on September 10,
2010 and April 15, 2011, each
of the Funds listed below received a demand letter from a law firm
on behalf of purported common shareholders of the Fund. The demand
letters alleged breaches of fiduciary duties owed to the Fund's
common shareholders as a result of redemptions at par of certain of
the Funds' ARPS, and demanded that the Board take action to remedy
those alleged breaches. Some of the allegations made in the
demand letters were repeated and expanded in complaints filed on
July 22, 2010 and August 3, 2010 in the Supreme Court of the
State of New York, New York County.
The Funds that received the demand letters are:
|
|
Symbol
|
Fund
|
|
IQT
|
Invesco Quality Municipal
Investment Trust
|
|
IQI
|
Invesco Quality Municipal Income
Trust
|
|
IIM
|
Invesco Insured Municipal Income
Trust
|
|
PIA
|
Invesco Municipal Premium Income
Trust
|
|
|
|
|
|
On June 24, 2010 the Board
established a special committee (the "Special Committee") of
certain independent Trustees to evaluate the claims made in the
demand letters and complaints with the assistance of independent
counsel. A subsequent demand letter was also referred to the
Special Committee. Based upon its inquiry, the Special Committee
recommended that the Board reject the demands specified in the
demand letters. After reviewing the findings of the Special
Committee, the independent Trustees for each Fund who were entitled
to vote accepted the Special Committee's recommendation and voted
to reject the demands and seek dismissal of related lawsuits.
Invesco is currently exploring potential alternative forms of
leverage, including alternative preferred stock structures like
variable rate demand preferred shares (VRDP) and variable municipal
term preferred shares (VMTP) and the expanded use of tender option
bonds (TOBs) and reverse repurchase agreements, in order to provide
liquidity to ARPS holders for each Invesco closed-end fund with
ARPS outstanding (the "Closed-End Funds"). The Board will consider
recommendations from Invesco. There is no guarantee that all
or a portion of a particular Closed-End Fund's ARPS will be
redeemed. The Board and Invesco will determine, based on the facts
and circumstances applicable to each Closed-End Fund, whether such
alternative forms of leverage would be appropriate and in the best
interest of the respective Closed-End Fund as a whole and its
shareholders.
Invesco will continue to keep market participants and
shareholders informed of the progress to redeem ARPS via press
releases and Invesco's website at www.invesco.com.
The Closed-End Funds covered by the Board and utilizing ARPS
include:
|
|
Symbol
|
Fund
|
|
IMC
|
Invesco Insured Municipal Bond
Trust
|
|
IQT
|
Invesco Quality Municipal
Investment Trust
|
|
IMT
|
Invesco Insured Municipal
Trust
|
|
IQI
|
Invesco Quality Municipal Income
Trust
|
|
IIM
|
Invesco Insured Municipal Income
Trust
|
|
IIC
|
Invesco California Insured
Municipal Income Trust
|
|
IQM
|
Invesco Quality Municipal
Securities
|
|
IQC
|
Invesco California Quality
Municipal Securities
|
|
IQN
|
Invesco New York Quality
Municipal Securities
|
|
PIA
|
Invesco Municipal Premium Income
Trust
|
|
|
|
|
|
About Invesco
Invesco is a leading independent global investment manager,
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 company is listed on the New York Stock Exchange
under the symbol IVZ. Additional information is available at
www.invesco.com.
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 are wholly owned,
indirect subsidiaries of Invesco Ltd.
SOURCE Invesco