BRW Announces Notification of Sources of Distributions
Saba Capital Income & Opportunities Fund (NYSE: BRW) has announced its monthly distribution and provided an estimate of the sources of this distribution as required by securities laws. For the September 30, 2024 distribution of $0.085 per share, the estimated allocations are:
- 52.81% from Net Investment Income
- 47.19% from Return of Capital
The Fund estimates it has distributed more than its income and net realized capital gains, indicating a portion of the distribution may be a return of capital. For the fiscal year-to-date as of August 31, 2024, the cumulative distribution of $0.9640 per share is estimated to come from:
- 39.54% Net Investment Income
- 60.46% Return of Capital
The Fund's annualized distribution rate is 14.69% of NAV as of August 31, 2024. The Fund operates under a managed distribution plan, aiming to provide a fixed monthly distribution of $0.085 per share.
Il Saba Capital Income & Opportunities Fund (NYSE: BRW) ha annunciato la sua distribuzione mensile e fornito una stima delle fonti di questa distribuzione come richiesto dalle leggi in materia di titoli. Per la distribuzione del 30 settembre 2024 di $0.085 per azione, le allocazioni stimate sono:
- 52.81% da Reddito di Investimento Netto
- 47.19% da Rimborso di Capitale
Il Fondo stima di aver distribuito più del suo reddito e delle plusvalenze nette realizzate, indicando che una parte della distribuzione potrebbe essere un rimborso di capitale. Per l'anno fiscale fino al 31 agosto 2024, la distribuzione cumulativa di $0.9640 per azione è stimata provenire da:
- 39.54% Reddito di Investimento Netto
- 60.46% Rimborso di Capitale
Il tasso di distribuzione annualizzato del Fondo è del 14.69% del NAV al 31 agosto 2024. Il Fondo opera sotto un piano di distribuzione gestita, con l'obiettivo di fornire una distribuzione mensile fissa di $0.085 per azione.
El Saba Capital Income & Opportunities Fund (NYSE: BRW) ha anunciado su distribución mensual y ha proporcionado una estimación de las fuentes de esta distribución, como lo exigen las leyes de valores. Para la distribución del 30 de septiembre de 2024 de $0.085 por acción, las asignaciones estimadas son:
- 52.81% de Ingresos de Inversión Netos
- 47.19% de Devolución de Capital
El Fondo estima que ha distribuido más de su ingreso y ganancias de capital netas realizadas, lo que indica que una parte de la distribución puede ser una devolución de capital. Para el año fiscal hasta el 31 de agosto de 2024, se estima que la distribución acumulada de $0.9640 por acción proviene de:
- 39.54% Ingresos de Inversión Netos
- 60.46% Devolución de Capital
La tasa de distribución anualizada del Fondo es del 14.69% del NAV al 31 de agosto de 2024. El Fondo opera bajo un plan de distribución gestionada, con el objetivo de proporcionar una distribución mensual fija de $0.085 por acción.
사바 캐피탈 인컴 & 오퍼튜니티 펀드(NYSE: BRW)는 월 배당금을 발표하고 증권법에 따라 이 배당금의 출처 추정치를 제공했습니다. 2024년 9월 30일 배당금은 주당 $0.085입니다, 예상 할당은 다음과 같습니다:
- 52.81% 순투자소득
- 47.19% 자본 반환
펀드는 수익과 순실현 자본 이익보다 더 많은 배당금을 분배했다고 추정하고 있으며, 이는 배당금의 일부가 자본 반환일 수 있음을 나타냅니다. 2024년 8월 31일 기준으로 세무 연도에 대한 총 누적 배당금 $0.9640은 다음 출처에서 추정됩니다:
- 39.54% 순투자소득
- 60.46% 자본 반환
펀드의 연화 배당률은 2024년 8월 31일 기준 NAV의 14.69%입니다. 펀드는 월 고정 배당금 $0.085를 제공하기 위한 관리 배당 계획 하에 운영됩니다.
Le Saba Capital Income & Opportunities Fund (NYSE: BRW) a annoncé sa distribution mensuelle et a fourni une estimation des sources de cette distribution, comme l'exigent les lois sur les valeurs mobilières. Pour la distribution du 30 septembre 2024 de 0,085 $ par action, les allocations estimées sont :
- 52,81 % des revenus nets d'investissement
- 47,19 % du remboursement de capital
Le fonds estime avoir distribué plus que son revenu et ses gains en capital nets réalisés, ce qui indique qu'une partie de la distribution pourrait être un remboursement de capital. Pour l'exercice fiscal jusqu'au 31 août 2024, la distribution cumulative de 0,9640 $ par action est estimée provenir de :
- 39,54 % des revenus nets d'investissement
- 60,46 % du remboursement de capital
Le taux de distribution annualisé du fonds est de 14,69 % de la NAV au 31 août 2024. Le fonds fonctionne sous un plan de distribution géré, visant à fournir une distribution mensuelle fixe de 0,085 $ par action.
Der Saba Capital Income & Opportunities Fund (NYSE: BRW) hat seine monatliche Ausschüttung angekündigt und eine Schätzung der Quellen dieser Ausschüttung bereitgestellt, wie es die Wertpapiergesetze verlangen. Für die Ausschüttung am 30. September 2024 von $0.085 pro Aktie sind die geschätzten Verteilungen:
- 52.81% aus Nettoinvestitionseinkommen
- 47.19% aus Kapitalrückzahlung
Der Fonds schätzt, dass er mehr als sein Einkommen und seine realisierten Nettoveräußerungsgewinne verteilt hat, was darauf hindeutet, dass ein Teil der Ausschüttung eine Kapitalrückzahlung sein könnte. Für das Geschäftsjahr bis zum 31. August 2024 wird die kumulierte Ausschüttung von $0.9640 pro Aktie auf geschätzt:
- 39.54% Nettoinvestitionseinkommen
- 60.46% Kapitalrückzahlung
Die annualisierte Ausschüttungsrate des Funds beträgt 14,69% des NAV am 31. August 2024. Der Fonds arbeitet unter einem verwalteten Ausschüttungsplan, der darauf abzielt, eine feste monatliche Ausschüttung von $0.085 pro Aktie bereitzustellen.
- The Fund maintains a high annualized distribution rate of 14.69% of NAV
- The Fund has a managed distribution plan providing a fixed monthly distribution of $0.085 per share
- The Fund's cumulative total return for the current fiscal period through August 31, 2024, is 9.18%
- A significant portion (47.19%) of the current distribution is classified as return of capital, which may not be sustainable
- For the fiscal year-to-date, 60.46% of distributions have been classified as return of capital, indicating potential overextension
- The Fund is distributing more than its income and net realized capital gains, which could impact long-term sustainability
Insights
This notification from Saba Capital Income & Opportunities Fund (BRW) provides important information about the fund's distribution sources, which is essential for investors to understand the nature of their returns. Key points include:
- The fund estimates it has distributed more than its income and net realized capital gains, with
47.19% of the September 2024 distribution classified as return of capital. - Year-to-date,
60.46% of distributions are estimated to be return of capital. - The fund's annualized distribution rate is
14.69% of NAV, which is notably high. - The fund's 5-year average annual total return is
3.69% , significantly lower than its distribution rate.
This data suggests the fund's distributions may not be sustainable from investment income alone. The high proportion of return of capital in distributions could be eroding the fund's asset base, potentially impacting long-term performance. Investors should carefully consider whether the high distribution rate compensates for the risks associated with potential NAV erosion.
The fund's managed distribution plan of
- It may create a false sense of yield, as part of the "income" is simply investors receiving their own capital back.
- The fund's investment strategy, including use of derivatives, SPACs and private funds, carries significant risks that may not be immediately apparent from the distribution rate.
- The
3.69% 5-year average annual total return suggests the fund's performance hasn't kept pace with its distributions, potentially leading to NAV erosion over time.
Investors should be cautious about interpreting the high distribution rate as indicative of strong performance. The fund's complex investment strategy and the discrepancy between total return and distribution rate warrant careful consideration. This situation underscores the importance of looking beyond headline yield figures when evaluating closed-end funds.
IMPORTANT INFORMATION REGARDING MONTHLY DISTRIBUTION
Distribution Notice. Pursuant to Section 19(a) of the Investment Company Act, the Fund is providing its shareholders with an estimate of the source of the Fund's monthly distribution as required by current securities laws.
The Fund’s estimated sources of the distribution paid on September 30, 2024 and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for the distribution paid on September 30, 2024 (estimated as of September 23, 2024):
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Cumulative Estimated Allocations fiscal year-to-date as of August 31, 2024, for the fiscal year ending October 31, 2024:
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Shareholders, prospective shareholders, and third parties should not draw any conclusions about the Fund’s investment performance from the amount of this distribution or from the terms of the Fund’s Plan (as defined below). The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the Fund’s distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect the Fund’s investment performance and should not be confused with “yield” or “income.” The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund’s distributions for federal income tax purposes.
The determination of the actual source of distributions can only be made at year-end. The actual source amounts of all Fund distributions 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 the Fund’s distributions 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. The final determination of the source and tax characteristics of all distributions will be made after December 31, 2024 and reported to you on Form 1099-DIV early in 2025. 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.
Effective after the close of business on June 4, 2021, Saba Capital Management, L.P. replaced Voya Financial as the investment adviser to Saba Capital Income & Opportunities Fund (formerly known as the Voya Prime Rate Trust). Performance of the Fund prior to the close of business on June 4, 2021 is not attributable to Saba Capital Management, L.P.
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Fund Performance and Distribution Rate Information:
1Average Annual Total Return in relation to NAV represents the compound average of the Annual NAV Total Returns of the Fund for the five-year period ended through August 31, 2024. Annual NAV Total Return is the percentage change in the Fund’s NAV over a year, assuming reinvestment of distributions paid.
2The Annualized Distribution Rate is the dollar value of distributions for the current fiscal period November 1, 2023 through August 31, 2024 (which includes the special dividend paid during the current fiscal period in January 2024) annualized as a percentage of the Fund’s NAV as of August 31, 2024. The level of distribution amount shown is not guaranteed and special dividends may not be paid in the future. Further, no conclusions should be drawn about the Fund’s investment performance from the amount or rate of distribution shown.
3Cumulative Total Return is the percentage change in the Fund’s NAV from October 31, 2023 through August 31, 2024, assuming reinvestment of distributions paid.
4The Cumulative Fiscal Year-To-Date Distribution Rate is the dollar value of distributions for the current fiscal period November 1, 2023 through August 31, 2024 (which includes the special dividend paid during the current fiscal period in January 2024) as a percentage of the Fund’s NAV as of August 31, 2024. The level of distribution amount shown is not guaranteed and special dividends may not be paid in the future. Further, no conclusions should be drawn about the Fund’s investment performance from the amount or rate of distribution shown.
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
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.
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.
Other Information and Certain Risk Factors: 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 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
The value of the Fund’s investments in 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. 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 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. Saba Capital Income & Opportunities Fund 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 “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 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, please visit our website at: www.sabacef.com.
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844-460-9411
Source: Saba Capital Income & Opportunities Fund
FAQ
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