BRW Announces Notification of Sources of Distributions
Saba Capital Income & Opportunities Fund (NYSE: BRW) has announced its monthly distribution for July 31, 2024, and provided estimates of the distribution sources. The Fund estimates that 63.45% of the July distribution is a return of capital, with the remaining 36.55% coming from net investment income. For the fiscal year-to-date, 61.21% of distributions have been return of capital.
The Fund's annualized distribution rate is 15.89% of NAV as of June 30, 2024. The Fund's average annual total return for the 5-year period ended June 30, 2024, was 2.56%. The Fund maintains a managed distribution plan with a fixed monthly distribution of $0.085 per share.
Shareholders are cautioned that the Fund may be distributing more than its income and net realized capital gains, which could impact the Fund's long-term sustainability.
Il Saba Capital Income & Opportunities Fund (NYSE: BRW) ha annunciato la sua distribuzione mensile per il 31 luglio 2024 e fornito stime sulle fonti di distribuzione. Il Fondo stima che il 63,45% della distribuzione di luglio sia un ritorno di capitale, con il restante 36,55% proveniente da reddito da investimenti netti. Fino ad oggi per l'anno fiscale il 61,21% delle distribuzioni è stato un ritorno di capitale.
Il tasso di distribuzione annualizzato del Fondo è 15,89% del NAV al 30 giugno 2024. Il rendimento annuale totale medio del Fondo per il periodo di 5 anni terminato il 30 giugno 2024 è stato del 2,56%. Il Fondo mantiene un piano di distribuzione gestito con una distribuzione mensile fissa di $0,085 per azione.
Si invita gli azionisti a prestare attenzione al fatto che il Fondo potrebbe distribuire più del proprio reddito e dei guadagni di capitale netti realizzati, il che potrebbe influire sulla sostenibilità a lungo termine del Fondo.
El Saba Capital Income & Opportunities Fund (NYSE: BRW) ha anunciado su distribución mensual para el 31 de julio de 2024 y ha proporcionado estimaciones de las fuentes de distribución. El Fondo estima que el 63,45% de la distribución de julio es un retorno de capital, con el 36,55% restante procedente de ingresos netos por inversiones. Hasta la fecha, el 61,21% de las distribuciones han sido retorno de capital en el año fiscal en curso.
La tasa de distribución anualizada del Fondo es 15,89% del NAV a partir del 30 de junio de 2024. El rendimiento total anual promedio del Fondo para el periodo de 5 años que terminó el 30 de junio de 2024 fue del 2,56%. El Fondo mantiene un plan de distribución gestionado con una distribución fija mensual de $0,085 por acción.
Se advierte a los accionistas que el Fondo puede estar distribuyendo más de sus ingresos y ganancias de capital netas realizadas, lo que podría afectar la sostenibilidad a largo plazo del Fondo.
사바 캐피탈 인컴 & 오퍼튜니티 펀드 (NYSE: BRW)가 2024년 7월 31일의 월간 분배 발표와 분배 출처 추정치를 제공했습니다. 펀드는 7월 분배의 63.45%가 자본 반환으로 추정하며, 나머지 36.55%는 순투자 수익에서 발생합니다. 회계 연도 초부터 분배의 61.21%는 자본 반환으로 나타났습니다.
펀드의 연간화된 분배률은 2024년 6월 30일 기준으로 NAV의 15.89%입니다. 2024년 6월 30일로 종료된 5년 기간 동안 펀드의 평균 연간 총수익률은 2.56%였습니다. 펀드는 주당 $0.085의 고정 월 분배로 관리되는 분배 계획을 유지하고 있습니다.
주주들에게는 펀드가 자신의 수익 및 순실현 자본 이득 이상으로 분배할 수 있다는 점을 유의하라고 권고합니다. 이는 펀드의 장기적인 지속 가능성에 영향을 미칠 수 있습니다.
Le Saba Capital Income & Opportunities Fund (NYSE: BRW) a annoncé sa distribution mensuelle pour le 31 juillet 2024 et a fourni des estimations des sources de distribution. Le Fonds estime que 63,45% de la distribution de juillet est un retour de capital, le reste de 36,55% provenant de revenus nets d'investissement. Pour l'année fiscale en cours, 61,21% des distributions ont été un retour de capital.
Le taux de distribution annualisé du Fonds est de 15,89% du NAV au 30 juin 2024. Le rendement total annuel moyen du Fonds pour la période de 5 ans se terminant le 30 juin 2024 était de 2,56%. Le Fonds maintient un plan de distribution géré avec une distribution mensuelle fixe de 0,085 $ par action.
Les actionnaires sont avertis que le Fonds pourrait distribuer plus que ses revenus et gains en capital nets réalisés, ce qui pourrait affecter la durabilité à long terme du Fonds.
Der Saba Capital Income & Opportunities Fund (NYSE: BRW) hat seine monatliche Ausschüttung für den 31. Juli 2024 bekannt gegeben und Schätzungen zu den Quellen der Ausschüttung bereitgestellt. Der Fonds schätzt, dass 63,45% der Ausschüttung im Juli eine Rückzahlung des Kapitals ist, während die verbleibenden 36,55% aus Nettokapitalerträgen stammen. Für das laufende Geschäftsjahr waren 61,21% der Ausschüttungen Rückzahlungen des Kapitals.
Die annualisierte Ausschüttungsrate des Fonds beträgt 15,89% des NAV zum 30. Juni 2024. Die durchschnittliche jährliche Gesamtverzinsung des Fonds für den Zeitraum von 5 Jahren endend am 30. Juni 2024 betrug 2,56%. Der Fonds hat einen verwalteten Ausschüttungsplan mit einer festen monatlichen Ausschüttung von 0,085 USD pro Aktie.
Aktionäre werden gewarnt, dass der Fonds möglicherweise mehr ausschüttet als seine Einkünfte und realisierten Kapitalgewinne, was die langfristige Nachhaltigkeit des Fonds beeinträchtigen könnte.
- High annualized distribution rate of 15.89% of NAV
- Consistent monthly distribution of $0.085 per share under the managed distribution plan
- Positive average annual total return of 2.56% over the past 5 years
- Majority of distributions (63.45% for July, 61.21% YTD) classified as return of capital, potentially impacting long-term sustainability
- Low portion of distribution (36.55% for July) coming from net investment income
- No realized capital gains contributing to distributions, indicating potential lack of profitable investments
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 to be paid on July 31, 2024 and for the fiscal year 2024 year-to-date are as follows:
Estimated Allocations for the distribution to be paid on July 31, 2024 (estimated as of June 21, 2024):
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Cumulative Estimated Allocations fiscal year-to-date as of June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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.
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, investing in closed‐end funds, special purpose acquisition companies (“SPACs”), reinsurance, public and private debt instruments, as well as derivatives, including, but not limited to, total return swaps, credit default swaps, options (including but not limited to index options) and futures, where the Fund seeks to enhance returns and/or to reduce portfolio risk. From time to time, in pursuit of its investment objective, the Fund may also invest up to
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. 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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Contact: 844-460-9411
Source: Saba Capital Income & Opportunities Fund
FAQ
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