NEW YORK–( BUSINESS WIRE )–Saba Capital Income & Opportunities Fund II (NYSE: SABA ) (the Fund), a registered closed-end investment management company listed on the New York Stock Exchange, announced a monthly dividend of $0.058 per share on December 31, 2024, payable on January 31, 2025 to shareholders of record on January 10, 2025.
Managed distribution plan. The above distribution was announced in accordance with the Fund’s currently valid managed distribution plan (the Plan), under which the Fund will make monthly distributions to shareholders in a fixed amount of USD 0.058 per share. Therefore, the presented distribution amount excludes special dividends (which are not paid in accordance with the plan). The Fund will generally distribute the amounts necessary to fulfill the Fund’s Plan and the requirements prescribed by the excise rules and Subchapter M of the Tax Code. The Plan aims to provide shareholders with a constant, but not guaranteed, fixed minimum distribution rate 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 guarantee that the Plan will be successful in doing so.
Under the Plan, to the extent sufficient investment income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or returns of capital 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. Conclusions about the success of the Fund’s investments may not be drawn from the amount of the Fund’s distributions or from the conditions 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 the Fund’s shareholders. No level of distribution can be guaranteed. Amendment or cancellation of the Plan could negatively affect the market price of the Fund’s ordinary shares. The plan is subject to periodic review by the board, including an annual review of the minimum annual fixed rate to determine whether an adjustment should be made.
Pursuant to Rule 19a-1 of the Investment Company Act of 1940, shareholders will receive a notice detailing the source of income for the above dividend, such as net investment income, gain on sale of securities and return of principal; however, the determination of the actual source of the aforementioned dividend can only be made at the end of the year. The actual original amounts of all Fund dividends will be included in the Fund’s annual or semi-annual reports. Furthermore, the tax treatment may differ from the accounting treatment used to calculate the source of the Fund’s dividends shown in the shareholder statements. Shareholders should refer to their Form 1099-DIV for the nature and amount of distributions for income tax reporting purposes. Since the tax situation of each shareholder is unique, it may be advisable to consult with a tax advisor about the appropriate treatment of Fund distributions.
Past performance is no guarantee of future results. The return on investment and the principal value of investments in the Fund will vary. Shares, when sold, may be worth more or less than their original price. Investors should carefully consider the investment objective, risks and costs. You can get the latest periodic reports and submissions of the Fund by visiting https://www.sec.gov/edgar/browse/?CIK=828803&owner=exclude.
Other information and certain risk factors: The Fund’s investment goal is to provide investors with high current income, with the secondary goal of increasing capital value. There is no guarantee that the Fund will meet its investment objective. The Fund seeks to achieve this objective by investing globally in the debt and equity securities of public and private companies, which includes, among others, investments in closed-end funds, special purpose acquisition companies (SPACs), reinsurance, and public and private debt instruments. The Fund may also use derivatives including but not limited to total return swaps, credit risk swaps, options (including but not limited to index options) and futures in an effort to increase returns and/or 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 are focused on debt, equity or other investments consistent with the Fund’s investment objective.
The value of the Fund’s investment in equity securities of public and private, listed and unlisted companies and equity derivatives generally varies depending on the performance of the issuer and movements on the capital markets in general. As a result, the Fund may incur losses if it invests in the equity instruments of issuers whose performance deviates from the expectations of the Fund’s investment manager or if stock markets generally move in one direction and the Fund has not hedged against such general movement. The Fund may invest in closed-end funds and SPACs, which are subject to additional risks and considerations. The performance of reinsurance-linked securities and the reinsurance industry itself is linked to the occurrence of various triggering events, including but not limited to weather, natural disasters (hurricanes, earthquakes, etc.), major non-natural disasters and other specified events that cause physical and /or economic loss. To the extent the Fund invests in reinsurance-linked securities for which a trigger event occurs, losses associated with such an event could result in losses on the Fund’s investment and a series of large trigger events affecting a large portion of the reinsurance-linked securities held by of the Fund could lead to significant losses for the Fund’s investment. The Fund may invest in high-yield securities, which are speculative in nature and 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 can directly affect the return on the Fund’s common shares. If these rates fall, the Fund’s yield may also fall. If the interest rate spread on the bonds and loans owned by the Fund generally narrows, the yield on the bonds and loans is likely to decline, and the value of such bonds and loans may decline. When short-term market interest rates rise, due to the lag between changes in such short-term rates and the resetting of floating rates on bonds and loans in the Fund’s portfolio, the effect of rising rates will be delayed to the extent that the lag. Due to the limited secondary market for certain bonds and loans, the Fund’s ability to sell such securities in a timely manner and/or at a favorable price may be limited. An increase in demand for bonds and loans may adversely affect the interest rate paid on new bonds and loans acquired by the Fund and may also increase the price of bonds and loans purchased by the Fund in the secondary market. A decrease in demand for bonds and loans may negatively affect the price of bonds and loans in the Fund’s portfolio, which would cause a decline in the Fund’s net asset value. Investing in foreign borrowers involves special risks, including but not limited to potentially less rigorous accounting requirements, different legal systems and potential political, social and economic distress. The Fund may engage in foreign exchange transactions to attempt to hedge, as closely as possible, all of the economic effect on 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 review 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 affecting the Fund.
About Saba Capital Income & Opportunities Fund II. Saba Capital Income & Opportunities Fund II is a publicly registered closed-end investment management company. The Fund’s common shares are traded on the New York Stock Exchange under the symbol SABA. The fund is managed by Saba Capital Management, LP
Forward-looking statements. This press release contains forward-looking statements that are subject to inherent uncertainties in predicting future results and conditions. All 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 forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve numerous risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those anticipated in these forward-looking statements. These factors, including but not limited to the specific risk factors listed above, are set forth from time to time in the Fund’s filings with the Securities and Exchange Commission, as well as in materials on the Fund’s website. The Fund undertakes no obligation to update such statements to reflect subsequent events, except as 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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Source: Saba Capital Income & Opportunities Fund II
