SABA Announces Source of Distribution Notification

07/31/2025 – 06:30 PM

NEW YORK–(BUSINESS WIRE)–Saba Capital Income & Opportunities Fund II (NYSE: SABA), a closed-end fund trading on the Big Board, is shedding light on its distribution strategy. In compliance with SEC regulations, specifically Section 19(a) of the Investment Company Act of 1940, the Fund is providing transparency to shareholders, potential investors, and interested parties regarding the composition of its payouts.

Decoding the Monthly Dividend: What You Need to Know

According to regulatory mandates, Saba Capital Income & Opportunities Fund II is issuing a distribution notice, detailing the estimated sources that comprise its monthly distributions.

For the dividend slated for payment on July 31, 2025, and the year-to-date figures for fiscal year 2025, here’s a glimpse under the hood:

Distribution Breakdown for July 31, 2025 Payout (as of July 24, 2025 estimates):

Fiscal Year-to-Date Estimated Allocations (as of June 30, 2025, for the fiscal year ending October 31, 2025):

Important Considerations: Don’t Confuse Distribution with Performance

Saba Capital advises investors to avoid drawing conclusions about the Fund’s performance based solely on distribution amounts or the details of its managed distribution plan. A portion of the distributions may represent a return of capital, which doesn’t necessarily reflect the Fund’s investment performance. Think of it like getting some of your initial investment back—it’s not the same as yield or income generation. Importantly, these figures are estimates for compliance purposes, not tax advice. Actual figures for tax reporting will be provided on Form 1099-DIV. Consult a tax professional for personalized guidance.

The definitive breakdown of distribution sources will be available in the Fund’s annual or semi-annual reports. Keep an eye out for Form 1099-DIV in early 2026, detailing the specifics for your 2025 taxes.

A change at the helm: Since January 1, 2024, Saba Capital Management, L.P., has taken over as the investment advisor, succeeding Franklin Templeton Advisers, Inc. Prior performance figures are not attributable to Saba Capital Management, L.P.

Key Metrics at a Glance:

¹Average Annual Total Return (NAV) represents the compound average for the five-year period ended June 30, 2025, assuming reinvestment of distributions.

²Annualized Distribution Rate reflect distributions from Nov 1 2024, through June 30, 2025 as a percentage of NAV The figure is not a guarantee, and special dividends are not assured. Investors should not equate it with fund performance.

³Cumulative Total Return is the percentage change in NAV from October 31, 2024, through June 30, 2025, assuming reinvestment of distributions.

⁴The Cumulative Fiscal Year-To-Date Distribution Rate is Distributions from November 1, 2024, through June 30, 2025 as a percentage of the Funds NAV

The Managed Distribution Plan: An Overview

The announced distribution aligns with the Fund’s managed distribution plan. The Fund aims for monthly distributions of $0.058 per share, excluding any special dividends paid outside the plan. The design seeks to deliver a consistent, albeit not guaranteed, distribution rate and potentially narrow the gap between market price and net asset value.

To maintain this fixed distribution, the Fund may tap into long-term capital gains and/or return of capital when investment income falls short. The Board of Trustees retains the power to modify or terminate the plan at any time.

Disclaimer: Past Performance is No Predictor of Future Returns.

Investment in the Fund involves risks, including potential loss of principal. For more information, including the Fund’s objectives and risks, review the Fund’s filings at https://www.sec.gov/edgar/browse/?CIK=828803&owner=exclude.

Fund Strategy and Risk Profile:

Saba Capital Income & Opportunities Fund II focuses on generating high current income with capital appreciation as a secondary objective. The fund invests globally in diverse assets including corporate debt and equity, closed-end funds, SPACs, reinsurance instruments, and derivatives. These instruments carry inherent risks, including market volatility, illiquidity, and sector concentration. The fund’s website and SEC filings offer comprehensive details on specific risks.

About Saba Capital Income & Opportunities Fund II:

Saba Capital Income & Opportunities Fund II is a publicly-traded closed-end fund (NYSE: SABA), managed by Saba Capital Management, L.P.

Forward-Looking Statements:

This announcement includes forward-looking statements, subject to uncertainties and risks. Actual results may differ materially from projections. The Fund disclaims any obligation to update these statements.

For more information, visit www.sabacef.com.

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Source: Saba Capital Income & Opportunities Fund II