Saba Capital Shifts CEFS ETF to Quarterly Distributions at 12% Rate

The first distribution under this new policy, set at $0.246 per share, is scheduled for payment on September 30, 2026, to shareholders of record as of September 28. Paul Kazarian, portfolio manager at Saba Capital, stated that the shift to a quarterly schedule offers greater flexibility in managing the fund's hedged portfolio while aiming for consistent risk-adjusted returns.

Investors should note that the 12% target is not a guaranteed yield. Because the fund pursues a fixed percentage of its net asset value, distributions may occasionally exceed income and gains. In such instances, portions of the payment may be classified as a return of capital, which effectively reduces the original investment value. The fund is required to disclose these sources under Section 19(a) of the Investment Company Act of 1940, and management advises shareholders to review these notices carefully rather than assuming payouts are derived solely from net profit.