Saba fund shows 12.2% payout rate, warns some may be return of capital

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Saba Capital Income & Opportunities Fund II (SABA) announced its monthly distribution of $0.058 per share, estimating that 100% comes from net investment income. The fund has a 12.17% annualized distribution rate, but warns that distributions might include return of capital, which does not reflect investment performance and could reduce the fund’s net asset value. Shareholders will receive a Form 1099-DIV for tax reporting purposes at year-end.

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