Latest news with #InvestmentCompanyAct
Coin Geek
a day ago
- Business
- Coin Geek
Staking status uncertain as SEC pulls brakes on ETFs
Getting your Trinity Audio player ready... The Securities and Exchange Commission (SEC) has written to the owner of two proposed exchange-traded funds (ETFs), warning that the staking components of their products may make them ineligible for a regulated exchange listing. The two funds, one intended to be based on Solana and the other on Ethereum, were formally proposed in January by ETF Opportunities Trust, a special-purpose vehicle for launching ETFs. In this instance, it represents REX-Osprey, a joint venture and the ultimate proposer of the funds. What sets these funds apart is that their construction allows for their digital assets to be 'staked'—in other words, deployed to the network's consensus mechanism—in exchange for further rewards. The initial filing was made on January 21, with a designated 'go-live' date of May 30. In the intervening months, the Trust went back and forth with the SEC over the specifics of the proposals, which apparently involved the Trust repeatedly tweaking the disclosures made to the SEC. When the May 30 effective date came and went, the Trust had still not resolved all of the SEC's queries, according to a warning letter sent by the SEC last week. At the heart of the SEC's concerns is whether the funds meet the definition of an 'investment company' under the Investment Company Act in light of the proposed staking functionality. Any fund seeking SEC approval for exchange listing must comply with this definition. Under the Act, an 'investment company' is defined as: 'any issuer… which is or holds itself out as being primarily engaged, or proposes to engage primarily, in the business of investment, reinvesting or trading in securities.' The SEC apparently feels that the staking proposed by the REX-Opsrey ETFs would remove the funds from that definition. Though not explicitly linked, the SEC's trepidation can be speculated to stem from recent, sweeping guidance issued by the regulator, which suggests that staking activities definitively do not meet the definition of 'securities' such that they would be regulated by the SEC. Though the industry celebrated this as a manifestation of the SEC's new pro-crypto bent, it may have had the unintended effect of making it more difficult to get approval for staking-enabled ETFs. Staking is becoming the new battleground between the new and old regulatory approaches If the SEC allows staking ETF-bound digital assets, it would be the latest expansion of crypto's role in traditional financial product models. Certain sectors of the industry have eagerly anticipated such expansion with the arrival of the Trump administration and the appointment of a more crypto-positive SEC Chair in Paul Atkins. Previous Chair Gary Gensler had indicated that digital assets that offer staking may cross over into the securities definition. However, after industry pressure earlier this year, the SEC issued new guidance in May that, though non-binding, indicated that the regulator would not view staking as a securities product. Notably, the latest SEC guidance drew criticism from within the SEC itself. Commissioner Caroline Crenshaw accused the guidance of taking a 'fake it till you make it' approach to regulation, pointing out that well-trodden securities rules have already been applied to staking services and, in some cases, have found them to qualify as securities. 'This is yet another example of the SEC's ongoing 'fake it till we make it' approach to crypto – taking action based on anticipation of future changes while ignoring existing law,' wrote the Commissioner. It's at least arguable that Crenshaw's criticisms are borne out in the hold-up in approving the REX-Osprey ETFs, which presumably would have found an easier path to approval if the SEC considered staking a securities activity. Watch: Breaking down solutions to blockchain regulation hurdles title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Economic Times
3 days ago
- Business
- Economic Times
SEC's crypto confusion deepens as next-gen ETFs test limits
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel A new line of yield-chasing crypto funds is forcing the Securities and Exchange Commission to confront unresolved gaps in its regulatory framework, just as the Trump administration eases oversight of digital immediate dispute centres on two proposed funds from ETF firms REX Financial and Osprey Funds that would allow investors to earn rewards by deploying Ether and Solana tokens to help validate blockchain transactions, a process known as staking. The firms said they had cleared an initial SEC registration hurdle last week, but agency staff took the unusual step of objecting that very same evening. Staff warned the products may not meet standards to qualify as investment companies under federal law, raising broader questions about the regulation of a hot corner of the crypto-investment staff noted that to meet the definition of an investment company, a firm must primarily invest in securities. That's a problem when it comes to digital assets: there are no clear lines around what crypto activities trip securities laws and what don't.'When ETFs generate income from staking, they may start to resemble traditional investment companies under the Investment Company Act — especially if investors are relying on the managerial efforts of others to earn those returns,' said Adam Gana, an attorney at law firm Gana Weinstein LLP. 'However, these types of ETFs are testing the boundaries of what counts as an investment company, and the SEC is sending mixed signals.'Gana added that 'just because you throw some stocks into the mix doesn't mean the SEC will look the other way.'The SEC, REX and Osprey declined to comment. The general counsel at REX said earlier that the firm expected to satisfy the SEC's crypto industry has long argued that many tokens aren't securities and shouldn't fall under the SEC rules. Under Trump, the agency has appeared open to these arguments, and its new chair, Paul Atkins, is a proponent of digital currencies. SEC staff guidance has signalled that memecoins and stablecoins may fall outside securities recently as May 29, the staff said federal securities laws generally don't apply to staking activities — further complicating the regulatory picture as firms try to launch novel piecemeal statements create inconsistent policy, according to Corey Frayer, director of investor protection at the Consumer Federation of America.'The SEC and the industry don't get to treat crypto assets as securities when it's convenient, and not as securities when they want weaker regulation,' said Frayer, who served as a senior adviser to former SEC Chair Gary Gensler, a frequent target of crypto industry the crux of the matter is the so-called Howey test , which comes from a 1946 Supreme Court decision that still governs securities classification. Under the test, an asset can be considered a security — and thus will fall under SEC purview — if investors contribute capital with the expectation derived from the managerial efforts of others. Bitcoin is generally considered a commodity but the status of other tokens like Ether and Solana are less Commissioner Hester Peirce, head of the agency's crypto task force, took the unusual step of highlighting the SEC staff's queries about whether the proposed funds met the definition.'I have those same questions,' Peirce wrote in a post on Trump embraced the digital-asset industry during his reelection campaign, pledging to make the US the 'crypto capital of the planet.' Since re-entering the White House, he has established a national stockpile of Bitcoin, anointed a 'crypto czar' and welcomed memecoin enthusiasts to a private dinner in have recently been successful in resolving SEC staff concerns about novel offerings. Earlier this year, agency staffers rebuked an ETF by State Street Corp. and Apollo Global Management — the world's first to invest in private credit — hours after the fund listed over concerns about the fund's liquidity and its ability to comply with valuation rules. The firms took action to rectify the executives are optimistic that US regulators will eventually greenlight the staking ETFs.'They've followed a crawl-walk-run approach — first futures ETFs, then spot ETFs, and hopefully staking ETFs,' said Matt Hougan, chief investment officer at Bitwise Asset Management Inc., which acquired an Ethereum staking platform last year. 'I'm hopeful we'll get to the finish line soon.'
Yahoo
02-06-2025
- Business
- Yahoo
SEC Concerned About Crypto ETFs With Staking Exposure
The Securities and Exchange Commission (SEC) is concerned that crypto exchange-traded funds that offer exposure to staking may not qualify as ETFs after all. On Friday, the agency sent a letter to ETF Opportunities Trust regarding Ethereum and Solana funds by REX Financial and Osprey Funds with staking exposure: the REX-Osprey ETH ETF and the REX-Osprey SOL ETF. Staking allows crypto investors to earn rewards on the tokens they hold. The SEC letter said that it 'continues to have unresolved questions whether the Funds, if structured and operated as proposed, would be able to meet the definition of 'investment company' under the Investment Company Act.' Under the law, funds must meet this definition to be eligible to trade on the stock market. The financial regulator added that it is 'concerned that the Funds may have improperly filed their registration statement on Form N-1A and that disclosures in the registration statement regarding the Funds' status as investment companies may be potentially misleading.' REX Financial and Osprey Funds declined to comment to However, Bloomberg reported that Greg Collett, general counsel at REX Financial, said, 'We think we can satisfy the SEC on the investment company question, and we don't intend to launch the funds until we do that.' The funds would have been the 'first-ever staked Ether and Solana ETFs' as well as the "first-ever spot Solana" ETF, according to Eric Balchunas, senior ETF analyst at Bloomberg. The SEC's delay comes after it issued guidance on Thursday, stating that staking participants don't need to register their transactions with the agency. On Saturday, Commissioner Caroline Crenshaw issued a statement criticizing the SEC's 'confusion' on crypto asset security status. 'In the name of this clarity, we've seen staff statement after staff statement, pronouncing that all sorts of crypto assets are not securities. And yet, now we see no objection to the effectiveness of new exchange-traded funds that assert certain crypto assets—ETH and SOL—actually are securities. Does this Commission, in fact, believe that ETH and SOL are securities?' Crenshaw wrote. 'How is it that these crypto assets are supposedly not securities when it comes to registration requirements but conveniently are securities when a registrant sees an opportunity to sell a new product?'Permalink | © Copyright 2025 All rights reserved Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-05-2025
- Business
- Yahoo
BRW Announces Notification of Sources of Distributions
NEW YORK, May 30, 2025--(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 Investment Company Act, the Fund is providing its shareholders with an estimate of the source of the Fund's monthly distribution as required by current securities laws. The Fund's estimated sources of the distribution to be paid on May 30, 2025 and for the fiscal year 2025 year-to-date are as follows: Estimated Allocations for the distribution to be paid on May 30, 2025 (estimated as of May 22, 2025): Distribution PerShare Net InvestmentIncome Per Share andPercentage of SuchDistribution Amount Net Realized Short-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Net Realized Long-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Return of Capital PerShare and Percentageof Such DistributionAmount $0.08500 $0.01952 (22.97%) $0.00000 (0.00%) $0.00000 (0.00%) $0.06548 (77.03%) Cumulative Estimated Allocations fiscal year-to-date as of April 30, 2025, for the fiscal year ending October 31, 2025: Distribution PerShare Net InvestmentIncome Per Share andPercentage of SuchDistribution Amount Net Realized Short-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Net Realized Long-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Return of Capital PerShare and Percentageof Such DistributionAmount $0.51000 $0.38522 (75.53%) $0.00000 (0.00%) $0.00000 (0.00%) $0.12478 (24.47%) Shareholders, prospective shareholders, and third parties should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Plan (as defined below). The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the Fund's distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund's distributions for federal income tax purposes. The determination of the actual source of distributions can only be made at year-end. The actual source amounts of all Fund distributions will be included in the Fund's annual or semi-annual reports. In addition, the tax treatment may differ from the accounting treatment used to calculate the source of the Fund's distributions as shown on shareholders' statements. Shareholders should refer to their Form 1099-DIV for the character and amount of distributions for income tax reporting purposes. The final determination of the source and tax characteristics of all distributions will be made after December 31, 2025 and reported to you on Form 1099-DIV early in 2026. Since each shareholder's tax situation is unique, it may be advisable to consult a tax advisor as to the appropriate treatment of Fund distributions. Effective after the close of business on June 4, 2021, Saba Capital Management, L.P. replaced Voya Financial as the investment adviser to Saba Capital Income & Opportunities Fund (formerly known as the Voya Prime Rate Trust). Performance of the Fund prior to the close of business on June 4, 2021 is not attributable to Saba Capital Management, L.P. Average Annual Total Return(in relation to the change innet asset value (NAV) for the5-year period ended on April30, 2025)1 Annualized DistributionRate (for the currentfiscal period as apercentage of NAV as ofApril 30, 2025)2 Cumulative Total Return(in relation to the changein NAV for the currentfiscal period through April30, 2025)3 Cumulative Fiscal Year-To-Date Distribution Rate (as apercentage of NAV as ofApril 30, 2025)4 9.31% 13.01% 7.77% 6.30% Fund Performance and Distribution Rate Information: 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 April 30, 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 April 30, 2025 annualized as a percentage of the Fund's NAV as of April 30, 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 April 30, 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 April 30, 2025 as a percentage of the Fund's NAV as of April 30, 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 above distribution was declared in accordance with the Fund's currently effective managed distribution plan (the "Plan"), whereby the Fund will make monthly distributions to shareholders at a fixed amount of $0.085 per share. Thus, the distribution amount shown excludes special dividends (which are not paid pursuant to the plan). 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. Under the Plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of capital in order 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. No conclusions should be drawn about the Fund's investment performance from the amount of the Fund's distributions or from the terms 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 Fund shareholders. No level of distribution can be guaranteed. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund's common shares. The Plan is subject to the periodic review by the Board, including a yearly review of the annual minimum fixed rate to determine if an adjustment should be made. Past Performance is No Assurance of Future Results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. Investors should consider the investment objective, risks and expenses carefully. You can obtain the Fund's most recent periodic reports and filings by visiting Other Information and Certain Risk Factors: The Fund's investment objective is to provide investors with a high level of current income, with a secondary goal of capital appreciation. There can be no assurance that the Fund will meet its investment objective. The Fund seeks to achieve this objective by investing globally in debt and equity securities of public and private companies, which includes, among other things, investments in closed‐end funds, special purpose acquisition companies ("SPACs"), reinsurance, and public and private debt instruments. The Fund also may utilize derivatives including but not limited to total return swaps, credit default swaps, options (including but not limited to index options) and futures, in seeking to enhance returns and/or to 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 focus on debt, equity or other investments consistent with the Fund's investment objective. The value of the Fund's investments in equity securities of public and private, listed and unlisted companies and equity derivatives generally varies with the performance of the issuer and movements in the equity markets more generally. As a result, the Fund may suffer losses if it invests in equity instruments of issuers whose performance diverges from the Fund's investment manager's expectations or if equity markets generally move in a single direction and the Fund has not hedged against such a general move. The Fund may invest in closed-end funds and SPACs, which are subject to additional risks and considerations. The performance of reinsurance-related securities and the reinsurance industry itself are tied to the occurrence of various triggering events, including but not limited to weather, natural disasters (hurricanes, earthquakes, etc.), non-natural large catastrophes and other specified events causing physical and/or economic loss. To the extent the Fund invests in reinsurance-related securities for which a triggering event occurs, losses associated with such event could result in losses to the Fund's investment, and a series of major triggering events affecting a large portion of the reinsurance- related securities held by the Fund could result in substantial losses to the Fund's investment. The Fund may invest in high yield securities, which are speculative in nature and are 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 may directly affect the yield on the Fund's common shares. If such rates fall, the Fund's yield may also fall. If interest rate spreads on bonds and loans owned by the Fund decline in general, the yield on the bonds and loans will likely fall and the value of such bonds and loans 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 bonds and loans 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 certain bonds and loans, the Fund's ability to sell such securities in a timely fashion and/or at a favorable price may be limited. An increase in the demand for bonds and loans may adversely affect the rate of interest payable on new bonds and loans acquired by the Fund, and it may also increase the price of bonds and loans purchased by the Fund in the secondary market. A decrease in the demand for bonds and loans may adversely affect the price of bonds and loans in the Fund's portfolio, which would cause the Fund's net asset value to decrease. The Fund's use of leverage, if any, through borrowings or issuance of preferred shares can adversely affect the yield on the Fund's common shares. Investment in foreign borrowers involves special risks, including but not limited to potentially less rigorous accounting requirements, differing legal systems and potential political, social and economic adversity. The Fund may engage in currency exchange transactions to seek to hedge, as closely as practicable, all of the economic impact to 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 consult 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 that affect the Fund. About Saba Capital Income & Opportunities Fund. Saba Capital Income & Opportunities Fund is a publicly-traded registered closed-end management investment company. The Fund's common shares trade on the New York Stock Exchange under the ticker symbol "BRW". The Fund is managed by Saba Capital Management, L.P. Forward-Looking Statements. This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any 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 to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors, including but not limited to the "Certain Risk Factors" noted above, are identified from time to time in the Fund's filings with the Securities and Exchange Commission as well as the materials on the Fund's website. The Fund undertakes no obligation to update such statements to reflect subsequent events, except as may be required by law. For further information on Saba Capital Income & Opportunities Fund, please visit our website at: View source version on Contacts 844-460-9411
Yahoo
30-05-2025
- Business
- Yahoo
SABA Announces Notification of Sources of Distributions
NEW YORK, May 30, 2025--(BUSINESS WIRE)--Saba Capital Income & Opportunities Fund II (NYSE: SABA) (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 Investment Company Act, the Fund is providing its shareholders with an estimate of the source of the Fund's monthly distribution as required by current securities laws. The Fund's estimated sources of the distribution to be paid on May 30, 2025 and for the fiscal year 2025 year-to-date are as follows: Estimated Allocations for the distribution to be paid on May 30, 2025 (estimated as of May 22, 2025): Distribution PerShare Net InvestmentIncome Per Share andPercentage of SuchDistribution Amount Net Realized Short-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Net Realized Long-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Return of Capital PerShare and Percentageof Such DistributionAmount $0.05800 $0.00428 (7.38%) $0.00000 (0.00%) $0.00000 (0.00%) $0.05372 (92.62%) Cumulative Estimated Allocations fiscal year-to-date as of April 30, 2025, for the fiscal year ending October 31, 2025: Distribution PerShare Net Investment IncomePer Share andPercentage of SuchDistribution Amount Net Realized Short-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Net Realized Long-Term Capital GainsPer Share andPercentage of SuchDistribution Amount Return of CapitalPer Share andPercentage of SuchDistributionAmount $0.34800 $0.15803 (45.41%) $0.00000 (0.00%) $0.00000 (0.00%) $0.18997 (54.59%) Shareholders, prospective shareholders, and third parties should not draw any conclusions about the Fund's investment performance from the amount of this distribution or from the terms of the Fund's Plan (as defined below). The Fund estimates that it has distributed more than its income and net realized capital gains; therefore, a portion of the Fund's distribution to shareholders may be a return of capital. A return of capital may occur, for example, when some or all of the money that a shareholder invested in a Fund is paid back to them. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income." The amounts and sources of distributions reported in this 19(a) Notice are only estimates and are not being provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Fund's investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Fund will send a Form 1099-DIV to shareholders for the calendar year that will describe how to report the Fund's distributions for federal income tax purposes. The determination of the actual source of distributions can only be made at year-end. The actual source amounts of all Fund distributions will be included in the Fund's annual or semi-annual reports. In addition, the tax treatment may differ from the accounting treatment used to calculate the source of the Fund's distributions as shown on shareholders' statements. Shareholders should refer to their Form 1099-DIV for the character and amount of distributions for income tax reporting purposes. The final determination of the source and tax characteristics of all distributions will be made after December 31, 2025 and reported to you on Form 1099-DIV early in 2026. Since each shareholder's tax situation is unique, it may be advisable to consult a tax advisor as to the appropriate treatment of Fund distributions. Effective on January 1, 2024, Saba Capital Management, L.P. replaced Franklin Templeton Advisers, Inc. as the investment adviser to Saba Capital Income & Opportunities Fund II (formerly known as the Templeton Global Income Fund). Performance of the Fund prior to January 1, 2024 is not attributable to Saba Capital Management, L.P. Average Annual Total Return(in relation to the change innet asset value (NAV) for the5-year period ended on April30, 2025)1 Annualized DistributionRate (for the currentfiscal period as apercentage of NAV as ofApril 30, 2025)2 Cumulative Total Return(in relation to the changein NAV for the currentfiscal period through April30, 2025)3 Cumulative Fiscal Year-To-Date Distribution Rate (as apercentage of NAV as ofApril 30, 2025)4 2.31% 7.44% 5.25% 3.65% Fund Performance and Distribution Rate Information: 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 April 30, 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 April 30, 2025 annualized as a percentage of the Fund's NAV as of April 30, 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 April 30, 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 April 30, 2025 as a percentage of the Fund's NAV as of April 30, 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 above distribution was declared in accordance with the Fund's currently effective managed distribution plan (the "Plan"), whereby the Fund will make monthly distributions to shareholders at a fixed amount of $0.058 per share. Thus, the distribution amount shown excludes special dividends (which are not paid pursuant to the plan). 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. Under the Plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund will distribute long-term capital gains and/or return of capital in order 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. No conclusions should be drawn about the Fund's investment performance from the amount of the Fund's distributions or from the terms 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 Fund shareholders. No level of distribution can be guaranteed. The amendment or termination of the Plan could have an adverse effect on the market price of the Fund's common shares. The Plan is subject to the periodic review by the Board, including a yearly review of the annual minimum fixed rate to determine if an adjustment should be made. Past Performance is No Assurance of Future Results. Investment return and principal value of an investment in the Fund will fluctuate. Shares, when sold, may be worth more or less than their original cost. Investors should consider the investment objective, risks and expenses carefully. You can obtain the Fund's most recent periodic reports and filings by visiting Other Information and Certain Risk Factors: The Fund's investment objective is to provide investors with high current income, with a secondary goal of capital appreciation. There can be no assurance that the Fund will meet its investment objective. The Fund seeks to achieve this objective by investing globally in debt and equity securities of public and private companies, which includes, among other things, investments in closed‐end funds, special purpose acquisition companies ("SPACs"), reinsurance, and public and private debt instruments. The Fund also may utilize derivatives including but not limited to total return swaps, credit default swaps, options (including but not limited to index options) and futures, in seeking to enhance returns and/or to 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 focus on debt, equity or other investments consistent with the Fund's investment objective. The value of the Fund's investments in equity securities of public and private, listed and unlisted companies and equity derivatives generally varies with the performance of the issuer and movements in the equity markets more generally. As a result, the Fund may suffer losses if it invests in equity instruments of issuers whose performance diverges from the Fund's investment manager's expectations or if equity markets generally move in a single direction and the Fund has not hedged against such a general move. The Fund may invest in closed-end funds and SPACs, which are subject to additional risks and considerations. The performance of reinsurance-related securities and the reinsurance industry itself are tied to the occurrence of various triggering events, including but not limited to weather, natural disasters (hurricanes, earthquakes, etc.), non-natural large catastrophes and other specified events causing physical and/or economic loss. To the extent the Fund invests in reinsurance-related securities for which a triggering event occurs, losses associated with such event could result in losses to the Fund's investment, and a series of major triggering events affecting a large portion of the reinsurance- related securities held by the Fund could result in substantial losses to the Fund's investment. The Fund may invest in high yield securities, which are speculative in nature and are 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 may directly affect the yield on the Fund's common shares. If such rates fall, the Fund's yield may also fall. If interest rate spreads on bonds and loans owned by the Fund decline in general, the yield on the bonds and loans will likely fall and the value of such bonds and loans 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 bonds and loans 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 certain bonds and loans, the Fund's ability to sell such securities in a timely fashion and/or at a favorable price may be limited. An increase in the demand for bonds and loans may adversely affect the rate of interest payable on new bonds and loans acquired by the Fund, and it may also increase the price of bonds and loans purchased by the Fund in the secondary market. A decrease in the demand for bonds and loans may adversely affect the price of bonds and loans in the Fund's portfolio, which would cause the Fund's net asset value to decrease. Investment in foreign borrowers involves special risks, including but not limited to potentially less rigorous accounting requirements, differing legal systems and potential political, social and economic adversity. The Fund may engage in currency exchange transactions to seek to hedge, as closely as practicable, all of the economic impact to 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 consult 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 that affect the Fund. About Saba Capital Income & Opportunities Fund II. Saba Capital Income & Opportunities Fund II is a publicly-traded registered closed-end management investment company. The Fund's common shares trade on the New York Stock Exchange under the ticker symbol "SABA". The Fund is managed by Saba Capital Management, L.P. Forward-Looking Statements. This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any 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 to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors, including but not limited to the "Certain Risk Factors" noted above, are identified from time to time in the Fund's filings with the Securities and Exchange Commission as well as the materials on the Fund's website. The Fund undertakes no obligation to update such statements to reflect subsequent events, except as may be required by law. For further information on Saba Capital Income & Opportunities Fund II, please visit our website at: View source version on Contacts 888-888-0319 Sign in to access your portfolio
