SABA Announces Source of Distribution

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08/29/2025 – 11:45 PM

NEW YORK – Get ready for some portfolio housekeeping. Saba Capital Income & Opportunities Fund II (NYSE: SABA), the closed-end fund aiming to deliver a one-two punch of income and strategic plays, is letting investors know where those monthly distributions are *actually* coming from. It’s like peeking behind the curtain – essential intel for anyone serious about their investments.

Under the regulatory microscope (Section 19(a) of the Investment Company Act of 1940, to be exact!), SABA is providing a breakdown of its distribution sources to current and prospective shareholders. Think of it as financial transparency on steroids.

So, what’s in the August 29th distribution cocktail? According to their calculations as of August 22nd, let’s break down the allocation:

For the fiscal year to date, things look like this:

Caveats, Disclaimers, and Need-to-Knows: SABA is quick to caution investors *not* to extrapolate too much from these distribution figures. A significant portion stems from “return of capital,” where a chunk of your initial investment gets paid back. It doesn’t necessarily reflect outstanding performance, but rather how the distributions are being funded. The true source of distributions won’t be finalized until after December 31, 2025, and will be detailed on Form 1099-DIV in early 2026.

Also of note, Saba Capital Management took over investment advisory duties for SABA on January 1, 2024, replacing Franklin Templeton Advisers. Earlier performance isn’t attributable to the current management.

By the Numbers: Performance Snapshot

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 July 31, 2025. 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 July 31, 2025 annualized as a percentage of the Fund’s NAV as of July 31, 2025. 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 July 31, 2025, 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 July 31, 2025 as a percentage of the Fund’s NAV as of July 31, 2025. 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 $0.058/Share Promise

Saba is committed to a managed distribution plan, targeting $0.058 per share monthly. This doesn’t include potential special dividends, but sets a minimum distribution rate via a payout sourced from investment income or, increasingly, capital or return of capital.

Heads up: The Board can modify or even scrap the plan altogether; no guarantees there.

Bottom Line: Do Your Homework

Past performance isn’t predictive. SABA invests across a wide range of assets–debt, equity, closed-end funds, SPACs, reinsurance, derivatives, you name it–with the goal of income and some capital upside. Investment values can swing, especially in the current challenging environment. Investors need to read all filings with the SEC and visit the Fund’s website for a complete accounting of these and other risk factors.

Saba Capital Income & Opportunities Fund II (NYSE:SABA) manages the closed-end fund from Saba Capital Management, L.P.

Forward-Looking Statements Disclaimer: These statements contain potential risks and uncertainties. Factors, including those listed in the Fund’s filings with the SEC, could shift how things ultimately pan out. The Fund isn’t obligated to update these statements down the road, except where required by law.

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