Saba Capital Income & Opportunities Fund (NYSE: BRW) (the âFundâ), a closed-end investment company listed on the New York Stock Exchange, declared a monthly dividend of $ 0.033 per share on September 30, 2021, payable in October 25, 2021 to shareholders of record on October 12, 2021.
Managed distribution plan. The above distribution has been declared in accordance with the Fund’s managed distribution plan, whereby the Fund will pay monthly distributions to shareholders at an initial minimum annual fixed rate of 8.00%, based on the average monthly net asset value of the shares. ordinary funds. The Fund will calculate the average net asset value for the previous month on the basis of the number of business days in that month on which the net asset value is calculated. The distribution will be calculated at 8.00% of the average net asset value 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 plan aims to provide shareholders with a fixed, constant but not guaranteed minimum distribution rate each month and aims to reduce the discount between the market price and the net asset value of the common shares of the Fund, but there is no guarantee that the plan will succeed.
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 the above dividend, such as net investment income, gain from the sale of securities and repayment of capital. However, the determination of the actual source of the aforementioned 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.
Past performance is no guarantee of future results. The return on investments and the principal value of an investment in the Fund will fluctuate. Stocks, when sold, may be worth more or less than their original cost.
Main risk factor (s): The Fund invests in high yield credit on an undiversified basis and also opportunistically targets other investments, such as registered closed-end funds and special purpose acquisition companies. The Fund will use derivatives when it believes it can generate attractive risk-adjusted returns. High yield investments carry a higher than normal risk that borrowers will not be able to repay principal and interest on their bonds or loans on time, which would likely cause the value of the common shares of the Fund to decline. Changes in short-term market interest rates will directly affect the return on the common shares of the Fund. If these rates fall, the Fund’s return will also decline. If interest rate spreads on Fund loans generally decrease, the yield on Fund loans will decline and the value of Fund loans may decline. When short-term market interest rates rise, due to the lag between changes in these short-term rates and the resetting of variable rates on loans in the Fund’s portfolio, the impact of the rate hike will be delayed. to the extent of this shift. Due to the limited secondary market for senior variable rate bank loans, the Fund’s ability to sell its loans on a timely basis and / or at a favorable price may be limited. An increase in loan demand may adversely affect the interest rate payable on new loans acquired by the Fund and may also increase the price of loans purchased by the Fund in the secondary market. A decrease in loan demand could have an adverse effect on the price of loans in the Fund’s portfolio, resulting in a decrease in the net asset value of the Fund. The Fund’s use of leverage, if any, through borrowing or issuance of preferred shares may adversely affect the performance of the common shares of the Fund. Investing in foreign borrowers involves special risks, including potentially less onerous accounting requirements, different legal systems, and potential political, social and economic adversity. The Fund may engage in foreign exchange transactions to seek to hedge, as closely as possible, any economic impact on the Fund resulting from fluctuations in foreign currencies. Other risks include, but are not limited to, the risks of using leverage (including borrowing or issuing preferred shares) to fund investments, the potential lack of portfolio diversification of the Fund and the fact that the Fund’s portfolio may be concentrated from time to time in a small group of industries or industrial sectors. Investors should consult the documents filed by the Fund with the Securities and Exchange Commission for a more detailed discussion of the risks of the Fund.
About Saba Capital Income & Opportunities Fund. Saba Capital Income & Opportunities Fund is a publicly traded closed-end management investment company whose investment objective is to provide investors with a high level of current income, with a secondary objective of capital appreciation. The common shares of the Fund trade on the New York Stock Exchange under the ticker symbol “BRW”. The Fund is managed by Saba Capital Management, LP
Forward-looking statements. This press release contains forward-looking statements subject to the uncertainties inherent in predicting future results and conditions. All statements which are not statements of historical fact (including statements containing the words “belief”, “plans”, “anticipates”, “expects”, “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements do not constitute guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors, including the âprimary risk factor (s)â set out above, are identified from time to time in documents filed by the Fund with the Securities and Exchange Commission. The Fund assumes no obligation to update these statements to reflect subsequent events, except as required by law.