On May 20, 2022, the Fund completed a reverse stock split (the “Reverse Split”) of its common shares at a ratio of 1-for-2. In connection with the Reverse Split, every two shares of the Fund’s issued and outstanding common shares were converted into one single common share. Any less than whole shares that would be held by a shareholder after effecting the Reverse Split were then issued in fractional form. The Fund’s common shares continue to trade on the New York Stock Exchange under the symbol “BRW” and have a new CUSIP (78518H202). The Reverse Split reduced the number of the Fund’s authorized common shares from 85,058,986 shares to 42,529,493 shares.
1Shares are bought and sold at market price not net asset value (NAV) and are not individually redeemed from the Fund. Market performance is determined using the bid/ask midpoint at 4:00 p.m. Eastern time when the NAV is typically calculated. Brokerage commissions will reduce returns.
2The Current Distribution Rate represents the rate approved by the Board of the Fund as part of a managed distribution plan. As part of the managed distribution plan, the Fund will make monthly distributions to shareholders at an initial 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.
Yield figures quoted should not be used as an indication of the income that has or will be received. Yield figures are based on the portfolio's underlying holdings and do not represent a payout of the portfolio.
3Effective after the close of business on June 4, 2021, the Fund’s name, investment adviser, and investment program have changed.
Shareholders of the Fund approved the following changes to the Fund's investment program at a special shareholder meeting on May 21, 2021:
- To approve the New Investment Management Agreement between the Fund and Saba Capital Management, L.P.
- To remove the Fund’s fundamental investment restriction relating to investing in warrants
- To remove the Fund’s fundamental investment restriction relating to purchasing or selling equity securities, engaging in short-selling and the use of certain option arrangements
- To remove the Fund’s fundamental investment restriction relating to investing in other investment companies
- To approve changing the Fund’s sub-classification under the Investment Company Act of 1940 from “diversified” to “non-diversified”
- To approve a change of the Fund’s investment objective and to make the investment objective non-fundamental
Important Risk Information
Carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing.
Investing involves risk, including possible loss of principal. Past performance is not indicative or a guarantee of future results.
All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. The Fund invests primarily in credit instruments that carry a risk that borrowers may default in the timely payment of principal and interest on their debt, 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. If such rates fall, the Fund’s yield will also fall. If interest rate spreads on the Fund's credit investments decline in general, the yield on the Fund’s credit investments will fall and the value of the Fund’s credit investments 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 credit investments 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 a portion of the Fund's investments, the Fund’s ability to sell some assets in a timely fashion and/or at a favorable price may be limited. An increase in the demand for credit investments may adversely affect the rate of interest payable on new credit investments acquired by the Fund, and it may also increase the price of credit investments purchased by the Fund in the secondary market. A decrease in the demand for credit investments may adversely affect the price of such investments in the Fund’s portfolio, which would cause the Fund’s NAV to decrease. The Fund’s use of leverage through borrowings 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 that seeks to hedge some or all of the economic impact to the Fund arising from foreign currency fluctuations.
Investments in foreign securities may involve risks such as social and political instability, market illiquidity, exchange-rate fluctuations, a high level of volatility and limited regulation. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund's portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise. Derivatives may be more sensitive to changes in market conditions, amplifying risks. A liquid market may not exist for derivatives held by the Fund. High-yield bonds have a higher risk of default or other adverse credit events, but have the potential to pay higher earnings over investment grade bonds. The higher risk of default, or the inability of the creditor to repay its debt, is the primary reason for the higher interest rates on high-yield bonds. The Fund intends to be non-diversified and may be subject to concentration risk and outsized market risk within the industries that it invests.
Saba Capital Management, L.P. has been registered as an investment adviser under the Investment Advisers Act of 1940 since August 6, 2010
Investors should carefully consider the investment objectives, risks, charges and expenses of the Saba Capital Income & Opportunities Fund. This and other important information about the Fund, such as information about the Fund’s updated investment program and principal risk factors, is contained in the definitive proxy statement, risk supplement, prospectus and statement of additional information. These documents should be read carefully before investing. Note that shares of the Fund are not currently being offered.
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