SABA Announces $0.058 Dividend
01 August 2024 - 2:45PM
Business Wire
Saba Capital Income & Opportunities Fund II (NYSE: SABA)
(the “Fund”), a registered closed-end management investment company
listed on the New York Stock Exchange, declared a monthly dividend
of $0.058 per share on July 31, 2024, payable on August 30, 2024 to
shareholders of record as of August 9, 2024.
Managed Distribution Plan. The above distribution was
declared in accordance with the Fund’s currently effective managed
distribution plan (the “Plan”), whereby the Fund will make monthly
distributions to shareholders at a fixed amount of $0.058 per
share. Thus, the distribution amount shown excludes special
dividends (which are not paid pursuant to the plan), including the
special dividend paid during the current fiscal period in December
2023. The Fund will generally distribute amounts necessary to
satisfy the Fund’s Plan and the requirements prescribed by excise
tax rules and Subchapter M of the Internal Revenue Code. The Plan
is intended to provide shareholders with a constant, but not
guaranteed, fixed minimum rate of distribution each month and is
intended to narrow the discount between the market price and the
net asset value of the Fund’s common shares, but there is no
assurance that the Plan will be successful in doing so.
Under the 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 managed distribution rate. As a result, long-term
capital gains and/or return of capital may be a material source of
any distribution. No conclusions should be drawn about the Fund’s
investment performance from the amount of the Fund’s distributions
or from the terms of the Fund’s Plan. The Board of Trustees (the
“Board”) may amend the terms of the Plan or terminate the Plan at
any time without prior notice to Fund shareholders. No level of
distribution can be guaranteed. The amendment or termination of the
Plan could have an adverse effect on the market price of the Fund’s
common shares. The Plan is subject to the periodic review by the
Board, including a yearly review of the annual minimum fixed rate
to determine if an adjustment should be made.
In compliance with Rule 19a-1 of the Investment Company Act of
1940, shareholders will receive a notice that details the source of
income for the above dividend, such as net investment income, gain
from the sale of securities and return of principal; however,
determination of the actual source of the foregoing dividend can
only be made at year-end. The actual source amounts of all Fund
dividends will be included in the Fund’s annual or semiannual
reports. In addition, the tax treatment may differ from the
accounting treatment used to calculate the source of the Fund’s
dividends as shown on shareholders’ statements. Shareholders should
refer to their Form 1099-DIV for the character and amount of
distributions for income tax reporting purposes. Since each
shareholder’s tax situation is unique, it may be advisable to
consult a tax advisor as to the appropriate treatment of Fund
distributions.
Past Performance is No Assurance of Future Results.
Investment return and principal value of an investment in the Fund
will fluctuate. Shares, when sold, may be worth more or less than
their original cost. Investors should consider the investment
objective, risks and expenses carefully. You can obtain the Fund’s
most recent periodic reports and filings by visiting
https://www.sec.gov/edgar/browse/?CIK=828803&owner=exclude.
Certain Risk Factors: The Fund’s investment objective is
to provide investors with high current income, with a secondary
goal of capital appreciation. There can be no assurance that the
Fund will meet its investment objective. The Fund seeks to achieve
this objective by investing globally in debt and equity securities
of public and private companies, which includes, among other
things, investments in closed‐end funds, special purpose
acquisition companies (“SPACs”), reinsurance, and public and
private debt instruments. The Fund also may utilize derivatives
including but not limited to total return swaps, credit default
swaps, options (including but not limited to index options) and
futures, in seeking to enhance returns and/or to reduce portfolio
risk. In addition, on an opportunistic basis, the Fund may also
invest up to 15% of its total assets in private funds that focus on
debt, equity or other investments consistent with the Fund’s
investment objective.
The value of equity securities of public and private, listed and
unlisted companies and equity derivatives generally varies with the
performance of the issuer and movements in the equity markets more
generally. As a result, the Fund may suffer losses if it invests in
equity instruments of issuers whose performance diverges from the
Fund’s investment manager’s expectations or if equity markets
generally move in a single direction and the Fund has not hedged
against such a general move. The Fund may invest in closed-end
funds and SPACs, which are subject to additional risks and
considerations. The performance of reinsurance-related securities
and the reinsurance industry itself are tied to the occurrence of
various triggering events, including but not limited to weather,
natural disasters (hurricanes, earthquakes, etc.), non-natural
large catastrophes and other specified events causing physical
and/or economic loss. To the extent the Fund invests in
reinsurance-related securities for which a triggering event occurs,
losses associated with such event could result in losses to the
Fund’s investment, and a series of major triggering events
affecting a large portion of the reinsurance- related securities
held by the Fund could result in substantial losses to the Fund’s
investment. The Fund may invest in high yield securities, which are
speculative in nature and are subject to additional risk factors
such as increased possibility of default, illiquidity of the
security, and changes in value based on changes in interest rates.
Changes in short-term market interest rates may directly affect the
yield on the Fund’s common shares. If such rates fall, the Fund’s
yield may also fall. If interest rate spreads on bonds and loans
owned by the Fund decline in general, the yield on the bonds and
loans will likely fall and the value of such bonds and loans may
decrease. When short-term market interest rates rise, because of
the lag between changes in such short-term rates and the resetting
of the floating rates on bonds and loans in the Fund’s portfolio,
the impact of rising rates will be delayed to the extent of such
lag. Because of the limited secondary market for certain bonds and
loans, the Fund’s ability to sell such securities in a timely
fashion and/or at a favorable price may be limited. An increase in
the demand for bonds and loans may adversely affect the rate of
interest payable on new bonds and loans acquired by the Fund, and
it may also increase the price of bonds and loans purchased by the
Fund in the secondary market. A decrease in the demand for bonds
and loans may adversely affect the price of bonds and loans in the
Fund’s portfolio, which would cause the Fund’s net asset value to
decrease. Investment in foreign borrowers involves special risks,
including but not limited to potentially less rigorous accounting
requirements, differing legal systems and potential political,
social and economic adversity. The Fund may engage in currency
exchange transactions to seek to hedge, as closely as practicable,
all of the economic impact to the Fund arising from foreign
currency fluctuations. Other risks include, but are not limited to,
the use of derivatives, the potential lack of diversification in
the Fund’s portfolio, and the fact that the Fund’s portfolio may be
concentrated in a small group of industries or industry sectors
from time to time. Investors should consult the Fund’s filings with
the Securities and Exchange Commission as well as the materials on
the Fund’s website for a more detailed discussion of these or other
risk factors that affect the Fund.
About Saba Capital Income & Opportunities Fund II.
Saba Capital Income & Opportunities Fund II is a
publicly-traded registered closed-end management investment
company. The Fund’s common shares trade on the New York Stock
Exchange under the ticker symbol “SABA”. The Fund is managed by
Saba Capital Management, L.P.
Forward-Looking Statements. This press release contains
forward-looking statements subject to the inherent uncertainties in
predicting future results and conditions. Any statements that are
not statements of historical fact (including but not limited to
statements containing the words “believes,” “plans,” “anticipates,”
“expects,” “estimates” and similar expressions) should also be
considered to be forward-looking statements. These statements are
not 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 but not limited to the “Certain Risk Factors” noted
above, are identified from time to time in the Fund’s filings with
the Securities and Exchange Commission as well as the materials on
the Fund’s website. The Fund undertakes no obligation to update
such statements to reflect subsequent events, except as may be
required by law.
For further information on Saba Capital Income &
Opportunities Fund II, please visit our website at:
www.sabacef.com.
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