NEW YORK–(COMMERCIAL THREAD) – Saba Capital Income & Opportunities Fund (NYSE: BRW) (the “Fund”) today announced that its board of directors has approved an increase in the annual target distribution rate as part of the Managed Distribution Plan of the Funds from 8% to 12%.
Therefore, effective from the first distribution paid in January 2022, the Fund will pay monthly distributions to shareholders at a minimum annual fixed rate of 12.00%, based on the average monthly net asset value of the common shares of the Fund. The Fund will calculate the average net asset value for the previous month based on the number of business days in that month on which the net asset value is calculated. The distribution will be calculated at 12.00% of the average NAV of the previous month, divided by twelve. The Fund will generally distribute the amounts necessary to satisfy the Fund plan and the requirements prescribed by the excise tax rules and Subchapter M of the Internal Revenue Code. The Fund’s managed distribution plan aims to provide shareholders with a constant, but not guaranteed, fixed minimum distribution rate each month and aims to reduce the discount between the market price and the net asset value of the Fund’s common shares, but nothing does not guarantee that the plan will succeed in doing so.
As part of the managed distribution plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund will distribute long term capital gains and / or return of capital in order to maintain its rate. distribution managed. No conclusions should be drawn about the performance of the Fund’s investments from the amount of the Fund’s distributions or the terms of the Fund’s managed distribution plan. The board can change or terminate the terms of the plan at any time. The modification or termination of the plan could have an adverse effect on the price of the common shares of the Fund. The Plan will be subject to a periodic review by the Board, including an annual review of the minimum annual fixed rate to determine whether an adjustment should be made.
In accordance with rule 19a-1 of the Investment Company Act of 1940, shareholders will receive a notice detailing the source of income for each dividend, such as net investment income, gain from the sale of securities and principal repayment. . However, the determination of the actual source of the Fund’s dividend can only be made at the end of the year. The actual source amounts of all dividends from the Fund will be included in the Fund’s annual or semi-annual reports. In addition, the tax treatment may differ from the accounting treatment used to calculate the source of dividends from the Fund, as disclosed on shareholder returns. Shareholders should refer to their Form 1099-DIV for the nature and amount of distributions for income tax reporting purposes. As the tax situation of each shareholder is unique, it may be advisable to consult a tax advisor as to the appropriate treatment of distributions from the Fund.
This press release is for informational purposes only and does not constitute a recommendation, offer or solicitation to purchase common shares.
About Saba Capital
Saba Capital Management, LP is a registered investment advisor founded in 2009. Saba is a spin-out of a proprietary investment group founded by Boaz Weinstein at Deutsche Bank in 1998. Saba manages $ 3.8 billion through four main strategies: Credit Relative Value, Tail Hedge, SAVS and closed-end funds. Saba’s investors are primarily institutions and include public and corporate pension plans, endowments and foundations, family offices, banks and insurers, bank wealth management platforms, funds of funds and certain high net worth individuals.