SCHEDULE: Saba Capital Reduces Stake in Blackrock California Municipal Income Trust

Saba Capital Management, L.P. and affiliates have reduced their beneficial ownership in Blackrock California Municipal Income Trust to 12.01% through open market sales.

Summary

• Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein (Reporting Persons) filed Amendment No. 14 to their Schedule 13D.
• The Reporting Persons now beneficially own 3,610,866 common shares of Blackrock California Municipal Income Trust.
• This represents 12.01% of the outstanding common shares, calculated based on 30,063,645 shares as of May 19, 2025.
• Between August 8, 2025, and September 3, 2025, Saba Capital sold a total of 318,779 common shares in open market transactions.
• Sale prices for these transactions ranged from $10.35 to $10.59 per share.
• The original acquisition of shares was funded by investor subscription proceeds, capital appreciation, and margin account borrowings, with approximately $39,526,992 paid in total.

Sentiment

Score: 4

Explanation: The reduction in a significant stake by an institutional investor like Saba Capital is generally viewed as a moderately negative signal, as it suggests a less bullish outlook or a strategic shift away from the investment. While not a direct indictment of the issuer's fundamentals, it can create downward pressure or uncertainty.

Risks

• The Reporting Persons utilize margin account borrowings for share acquisition, where positions held are pledged as collateral security for repayment of debit balances, introducing leverage risk to their investment strategy.

Future Outlook

Not Applicable. The filing does not contain forward-looking statements or guidance from the issuer or reporting persons regarding future performance or strategy beyond the ownership change.

Industry Context

This filing reflects a significant institutional investor, Saba Capital, adjusting its position in a closed-end municipal income fund. Such adjustments can be driven by various factors including portfolio rebalancing, changes in market outlook for municipal bonds, or specific views on the fund's discount/premium to Net Asset Value (NAV). While not explicitly stated, a reduction in stake by a prominent investor like Saba Capital could signal a shift in their investment thesis or a decision to deploy capital elsewhere, potentially influencing other investors' perceptions of the fund or the broader municipal bond market.

Stakeholder Impact

• Shareholders: The reduction in Saba Capital's stake could lead to increased selling pressure or a negative perception, potentially impacting share price. Other investors might interpret this as a signal to re-evaluate their own positions.
• Management: May face questions regarding the reasons for a major investor reducing their position, potentially increasing scrutiny on fund performance and strategy.

Key Dates

Recommendation

While Saba Capital's reduction in stake is a negative signal, the filing itself does not provide fundamental information about Blackrock California Municipal Income Trust's performance, financial health, or future prospects. The sales represent a portfolio adjustment by a specific investor. Without further information on the issuer's underlying value, a 'hold' recommendation is prudent, advising investors to monitor the situation and await more comprehensive financial disclosures before making a 'buy' or 'sell' decision.

Keywords

Blackrock California Municipal Income Trust, Saba Capital Management, Schedule 13D/A, Beneficial Ownership, Share Sales, Closed-End Fund, Municipal Bonds, Investment Management, Boaz R. Weinstein