BRW Announces Notification of Sources of Distributions
Saba Capital Income & Opportunities Fund (NYSE: BRW) has announced its monthly distribution details for December 31, 2024. The Fund will distribute $0.085 per share, with 100% sourced from net investment income for December. For the fiscal year-to-date ending November 30, 2024, distributions comprised 23.87% from net investment income and 76.13% return of capital.
The Fund's performance metrics show a 5.45% average annual total return over the five-year period ended November 30, 2024, with an annualized distribution rate of 12.79%. The cumulative total return for the current fiscal period is 6.37%, with a fiscal year-to-date distribution rate of 1.01%.
Il Saba Capital Income & Opportunities Fund (NYSE: BRW) ha annunciato i dettagli della sua distribuzione mensile per il 31 dicembre 2024. Il Fondo distribuirà $0.085 per azione, con il 100% proveniente da reddito netto da investimenti per dicembre. Per l'anno fiscale fino al 30 novembre 2024, le distribuzioni sono state costituite da 23.87% di reddito netto da investimenti e 76.13% di restituzione di capitale.
I parametri di performance del Fondo mostrano un ritorno totale medio annuale del 5.45% nel periodo di cinque anni terminato il 30 novembre 2024, con un tasso di distribuzione annualizzato del 12.79%. Il ritorno totale cumulativo per l'attuale periodo fiscale è 6.37%, con un tasso di distribuzione dall'inizio dell'anno fiscale pari a 1.01%.
El Saba Capital Income & Opportunities Fund (NYSE: BRW) ha anunciado los detalles de su distribución mensual para el 31 de diciembre de 2024. El Fondo distribuirá $0.085 por acción, con el 100% proveniente de ingresos netos de inversiones para diciembre. Para el año fiscal hasta el 30 de noviembre de 2024, las distribuciones consistieron en 23.87% de ingresos netos de inversiones y 76.13% de retorno de capital.
Los indicadores de rendimiento del Fondo muestran un retorno total anual promedio del 5.45% durante el período de cinco años que terminó el 30 de noviembre de 2024, con un tasa de distribución anualizada del 12.79%. El retorno total acumulado para el período fiscal actual es 6.37%, con una tasa de distribución hasta la fecha del año fiscal de 1.01%.
사바 캐피탈 인컴 & 오퍼튜니티 펀드 (NYSE: BRW)는 2024년 12월 31일 월간 배당금 세부사항을 발표했습니다. 이 펀드는 주당 $0.085를 배당할 예정이며, 12월에 대한 배당금의 100%는 순투자 수익에서 나오게 됩니다. 2024년 11월 30일 기준으로 올해 회계 연도의 배당금은 23.87%는 순투자 수익에서, 76.13%는 자본 회수에서 형성되었습니다.
펀드의 성과 지표는 2024년 11월 30일로 끝나는 5년 동안의 연평균 총 수익률 5.45%를 나타내며, 연환산 배당률 12.79%를 기록하고 있습니다. 현재 회계 기간의 누적 총 수익률은 6.37%이며, 회계 연도 시작부터의 배당률은 1.01%입니다.
Le Saba Capital Income & Opportunities Fund (NYSE: BRW) a annoncé les détails de sa distribution mensuelle pour le 31 décembre 2024. Le Fonds distribuera 0,085 $ par action, avec 100% provenant du revenu net d'investissement pour décembre. Pour l'année fiscale se terminant le 30 novembre 2024, les distributions comprenaient 23,87% de revenu net d'investissement et 76,13% de retour de capital.
Les indicateurs de performance du Fonds montrent un rendement total moyen annuel de 5,45% sur la période de cinq ans se terminant le 30 novembre 2024, avec un taux de distribution annualisé de 12,79%. Le rendement total cumulé pour la période fiscale actuelle est de 6,37%, avec un taux de distribution pour l'année fiscale jusqu'à présent de 1,01%.
Der Saba Capital Income & Opportunities Fund (NYSE: BRW) hat die Details seiner monatlichen Ausschüttung für den 31. Dezember 2024 bekannt gegeben. Der Fonds wird 0,085 $ pro Aktie ausschütten, wobei 100% aus dem Nettoinvestitionseinkommen für Dezember stammen. Für das bis zum 30. November 2024 laufende Geschäftsjahr setzten sich die Ausschüttungen aus 23,87% nettoem Einkommen aus Investitionen und 76,13% Rückzahlung von Kapital zusammen.
Die Leistungskennzahlen des Fonds zeigen eine durchschnittliche jährliche Gesamtrendite von 5,45% über den Zeitraum von fünf Jahren bis zum 30. November 2024, mit einer annualisierten Ausschüttungsquote von 12,79%. Die kumulierte Gesamtrendite für den aktuellen Geschäftsjahrzeitraum beträgt 6,37%, mit einer Ausschüttungsquote von 1,01% seit Beginn des Geschäftsjahres.
- Monthly distribution maintained at $0.085 per share
- 5.45% average annual total return over 5-year period
- 12.79% annualized distribution rate
- 6.37% cumulative total return for current fiscal period
- 76.13% of year-to-date distributions represent return of capital rather than earned income
- Fund has distributed more than its income and realized capital gains
Insights
This distribution notice reveals several critical aspects of BRW's financial position. The fund's monthly distribution of
The fund's
The fund's investment strategy spans multiple asset classes including debt, equity, SPACs and reinsurance, with the ability to use derivatives and leverage. While this diversification could provide opportunities, it also introduces complex risk factors that could impact distribution stability.
The distribution structure raises several concerns regarding long-term sustainability. The high proportion of return of capital in the year-to-date distributions (
The fund's comprehensive risk disclosure highlights significant exposure to various market sectors including high-yield securities, SPACs and reinsurance-related securities. The use of derivatives and potential leverage adds another layer of complexity and risk. The relatively wide gap between the
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 December 31, 2024 and for the fiscal year 2025 year-to-date are as follows:
Estimated Allocations for the distribution to be paid on December 31, 2024 (estimated as of December 20, 2024):
Distribution Per Share |
Net Investment Income Per Share and Percentage of Such Distribution Amount |
Net Realized Short-Term Capital Gains Per Share and Percentage of Such Distribution Amount |
Net Realized Long-Term Capital Gains Per Share and Percentage of Such Distribution Amount |
Return of Capital Per Share and Percentage of Such Distribution Amount |
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Cumulative Estimated Allocations fiscal year-to-date as of November 30, 2024, for the fiscal year ending October 31, 2025:
Distribution Per Share |
Net Investment Income Per Share and Percentage of Such Distribution Amount |
Net Realized Short-Term Capital Gains Per Share and Percentage of Such Distribution Amount |
Net Realized Long-Term Capital Gains Per Share and Percentage of Such Distribution Amount |
Return of Capital Per Share and Percentage of Such Distribution Amount |
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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.
Average Annual Total Return (in relation to the change in net asset value (NAV) for the 5-year period ended on November 30, 2024)1 |
Annualized Distribution Rate (for the current fiscal period as a percentage of NAV as of November 30, 2024)2 |
Cumulative Total Return (in relation to the change in NAV for the current fiscal period through November 30, 2024)3 |
Cumulative Fiscal Year-To-Date Distribution Rate (as a percentage of NAV as of November 30, 2024)4 |
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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 November 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, 2024 through November 30, 2024 annualized as a percentage of the Fund’s NAV as of November 30, 2024. The level of distribution amount shown is not guaranteed and special dividends may or 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, 2024 through November 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, 2024 through November 30, 2024 as a percentage of the Fund’s NAV as of November 30, 2024. The level of distribution amount shown is not guaranteed and special dividends may or 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
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