BRW - GIM: This New Saba Fund Could Be Promising But I Want More Information

2024-02-14 12:41:17 ET

Summary

• Saba Capital Income & Opportunities Fund II is a closed-end fund focused on generating income for investors.
• The fund's share price dropped after a transition in advisory, but has since performed fairly well compared to its sister fund, BRW.
• The fund aims to provide a distribution yield of about 9.04% annually, with the potential for special distributions.
• The fund sponsor has not provided current data for this fund's holdings, but it probably has a similar portfolio to BRW.
• The fund could prove a very solid investment, but I would recommend holding off on purchasing shares until more information is available.

The Saba Capital Income & Opportunities Fund II ( GIM ) is a closed-end fund, or CEF, that income-focused investors may wish to employ in order to achieve their goals of generating income from the assets in their portfolios. As was the case with the Saba Capital Income & Opportunities Fund ( BRW ), this fund is the result of a successful takeover of an underperforming closed-end fund by Saba Capital. In this case, the target fund was the Templeton Global Income Fund, with full control transferring around the start of this year. As might be expected, Saba Capital has radically changed the strategy that is employed by this fund in an attempt to earn higher returns for the fund's shareholders. Unfortunately, the fund's share price dropped significantly following the advisor transition, as we can see by looking at the fund's six-month chart:

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