Saba Capital Income & Opportunities FundNYSE: BRW

NEW YORK--(BUSINESS WIRE)--Saba Capital Income & Opportunities Fund (NYSE: BRW) (the “Fund”), a registered closed-end management investment company listed on the New York Stock Exchange, is notifying shareholders, prospective shareholders, and third parties of the sources of distributions pursuant to Section 19(a) of the Investment Company Act of 1940 (the “Investment Company Act”). IMPORTANT INFORMATION REGARDING MONTHLY DISTRIBUTION Distribution Notice. Pursuant to Section 19(a) of the In.

We take a look at the trio of Saba's public investment funds. CEFS is a pure-play fund of CEFs, while the CEFs BRW and SABA have allocations to a diverse array of securities, including reinsurance, loans, stocks, SPACs, crypto, etc. SABA will likely transition over time to be similar to BRW - it remains our favored option between the two funds.

Saba Capital Income & Opportunities Fund offers a high current income with a 14.51% yield, outperforming peers. The BRW closed-end fund's poor recent performance appears to have been caused by exposure to catastrophe bonds, leading to a net asset value decrease. The Fund failed to cover distributions in recent periods, indicating a potential need for distribution reduction to avoid running out of money.

Should we consider exchanging BRW for SABA?

Saba Capital Income & Opportunities Fund has a high distribution yield of 13.60% and pays out special distributions to shareholders. The fund has a reputation for activist investing and has attempted to force fund managers to make changes to reduce discounts on NAV. The fund's performance has been flat compared to the S&P 500, but investors have received a 4.94% total return due to high distribution yields.

The market is anticipating rate cuts, which led to a rally in November as rates on risk-free Treasuries retreated. Closed-end funds present good investment opportunities, trading at historically deep discounts. While the key theme this year had been primarily to avoid adding significant amounts of leverage, I made an exception with adding a PIMCO fund.

Saba Capital Income & Opportunities Fund is a closed-end fund that invests in global opportunities across various asset classes. BRW uses both public and private instruments, including CEFs and SPACs, and may use derivatives to enhance returns or reduce portfolio risk. BRW offers a high distribution yield of approximately 12% and trades at a discount of around 11%, making it attractive to income-seeking investors.

For the third straight month, both equity (-2.52% on a NAV basis) and fixed income (-1.62%) CEFs on average suffered downside performance. At month end, 6% of all CEFs traded at a premium to their NAV, with 8% of equity CEFs and only 5% of fixed income CEFs trading in premium territory. Utility CEFs (-0.52%), for the first month in seven, mitigated losses better than the other classifications in the equity CEF universe for October.

Saba Capital Income & Opportunities Fund employs an unusual strategy to provide a high level of income to investors, with a current yield of 13.28%. The fund has outperformed the S&P 500 Index on a total return basis since July, partially due to its high distribution yield and investments that benefit from rising interest rates. The fund's portfolio includes investments in closed-end funds, special-purpose acquisition companies, and public and private debt instruments, offering access to assets typically only available to accredited investors.