BRW Announces $0.085 Dividend
September 01 2023 - 8:45AM
Business Wire
Saba Capital Income & Opportunities Fund (NYSE: BRW) (the
“Fund”), a closed-end management investment company listed on the
New York Stock Exchange, declared a monthly dividend of $0.085 per
share on August 31, 2023, payable on September 29, 2023 to
shareholders of record as of September 11, 2023.
Managed Distribution Plan. The above distribution was
declared in accordance with the Fund’s currently effective managed
distribution plan, whereby the Fund will make monthly distributions
to shareholders at an annual minimum fixed rate of 12.00%, based on
the average monthly net asset value of the Fund’s common shares as
of the last business day of June or December, as more fully
described below. As of July 2023, the Fund will (a) for the
distributions that are paid in the months of January, February,
March, April, May, and June (each, a “First Half Distribution”),
use the average net asset value for the month of December from the
previous calendar year (the “December NAV Month”) and (b) for the
distributions that are paid in the months of July, August,
September, October, November, and December (each, a “Second Half
Distribution”), use the average net asset value for the month of
June from the current calendar year (the “June NAV Month” and
together with the December NAV Month, each a “NAV Month”). Such
average net asset value calculations for a NAV Month will be based
on the number of business days in such applicable NAV Month. The
distribution will be calculated as 12.00% of the applicable NAV
Month’s average net asset value, divided by twelve. Prior to July
2023, under the managed distribution plan, monthly distributions
were based on the average net asset value for the month in which
the distribution was declared. 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 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 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 managed
distribution plan. The Board of Trustees (the “Board”) may amend
the terms of the plan or terminate the plan at any time. 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=826020&owner=exclude.
Principal Risk Factor(s): The Fund’s investment objective
is to provide investors with a high level of current income, with a
secondary goal of capital appreciation. There can be no assurance
that the Fund will meet its investment objective. The Fund invests
globally in debt and equity securities of public and private
companies, which includes, but is not limited to, investing in
registered closed‐end funds and special purpose acquisition
companies (“SPACs”), public and private debt instruments as well as
derivatives where the Fund’s investment manager, Saba Capital
Management, LP (the “Investment Manager”) believes the Fund can
achieve attractive risk‐adjusted returns and/or as a way to reduce
portfolio risk. The Fund may also invest up to 15% of its total
assets in private funds on a discretionary basis, if the Investment
Manager determines that such an arrangement represents the best way
to access a particular investment opportunity or otherwise expand
the investment expertise available to the Fund.
The value of the Fund’s 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 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’s investments
in closed-end funds and SPACs are subject to additional risks and
considerations. The Fund’s high yield investments carry a higher
than normal risk that borrowers may default in the timely payment
of principal and interest on their bonds or loans, which would
likely cause the value of the Fund’s common shares to decrease.
Changes in short-term market interest rates will directly affect
the yield on the Fund’s common shares and is subject to additional
risks. If such rates fall, the Fund’s yield will also fall. If
interest rate spreads on the Fund’s bonds and loans decline in
general, the yield on the Fund’s bonds and loans will fall and the
value of the Fund’s 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. The Fund’s use of leverage,
if any, through borrowings or issuance of preferred shares can
adversely affect the yield on the Fund’s common shares. Investment
in foreign borrowers involves special risks, including 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, risks relating 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 the Fund’s risks.
About Saba Capital Income & Opportunities Fund. Saba
Capital Income & Opportunities Fund is a publicly-traded
registered closed-end management investment company with an
investment objective to provide investors with a high level of
current income, with a secondary goal of capital appreciation. The
Fund’s common shares trade on the New York Stock Exchange under the
ticker symbol “BRW”. 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 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 the
“Principal Risk Factor(s)” 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.
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