SCHEDULE: Saba Capital Boosts Stake in BNY Mellon Strategic Municipals

Saba Capital Management, L.P. and its affiliates have increased their beneficial ownership in BNY Mellon Strategic Municipals, Inc. to 9.56% through recent open market purchases.

Summary

• Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein (the "Reporting Persons") jointly filed an Amendment No. 4 to Schedule 13D.
• The filing reports beneficial ownership of 5,955,945 Common Shares, representing 9.56% of BNY MELLON STRATEGIC MUNICIPALS, INC.
• This percentage is calculated based on 62,290,854 shares outstanding as of September 30, 2025, as disclosed in the company's N-CSR filed on December 2, 2025.
• Within the 60 days prior to December 12, 2025, Saba Capital sold 276 shares on November 28, 2025, as a pro-rata distribution in-kind for no consideration.
• On December 12, 2025, Saba Capital purchased 257,402 Common Shares at a price of $6.29 per share in the open market.
• Approximately $35,231,909 was paid to acquire the Common Shares reported in the filing.
• Funds for purchases were derived from investor subscription proceeds, capital appreciation, and margin account borrowings.

Sentiment

Score: 5

Explanation: The filing is a factual disclosure of beneficial ownership and recent transactions, without explicit positive or negative commentary on the issuer's performance or outlook. The increase in stake by an activist investor could be interpreted positively by some, but the filing itself is neutral.

Positives

• Saba Capital Management, a prominent investment firm known for its activist strategies, has increased its stake, potentially signaling confidence in BNY Mellon Strategic Municipals, Inc.
• The recent purchase of 257,402 shares at $6.29 indicates a direct investment at a specific valuation by a sophisticated investor.

Negatives

• The use of margin account borrowings for share acquisition introduces leverage, which can amplify losses if the investment declines.
• A small pro-rata distribution of 276 shares occurred on November 28, 2025, for no consideration, which slightly reduced the overall holding prior to the new purchase.

Risks

• Positions held in margin accounts are pledged as collateral security for the repayment of debit balances, exposing the Reporting Persons to margin calls and potential forced sales if the market value of the pledged securities declines.
• The filing does not disclose the specific amounts of margin used, making it difficult to assess the exact leverage risk undertaken by the Reporting Persons.

Future Outlook

The filing does not provide specific forward-looking statements or guidance from the issuer or the reporting persons regarding their future intentions beyond the disclosure of current ownership.

Management Comments

• No direct quotes or paraphrased statements from the issuer's management are included in this filing. The filing is signed by Michael D'Angelo, General Counsel for Saba Capital Management, L.P., and as Authorized Signatory for Boaz R. Weinstein, and Attorney-in-fact for Saba Capital Management GP, LLC.

Industry Context

This filing details a significant ownership stake by Saba Capital Management, a known activist investor in closed-end funds, in BNY Mellon Strategic Municipals, Inc., a municipal bond fund. Such an accumulation of shares by an activist firm often precedes engagement with management regarding corporate governance, fund strategy, or shareholder value initiatives within the closed-end fund sector.

Comparison to Industry Standards

• The filing is a disclosure of beneficial ownership and does not contain performance metrics or operational data that would allow for a direct comparison to industry standards or specific comparable companies/projects.
• Saba Capital Management is recognized for its activist strategies in the closed-end fund space, often targeting funds trading at a discount to net asset value (NAV) to unlock shareholder value, a common practice among certain investment firms in this niche.

Management Changes

Corporate Governance

Legal Proceedings

• The Reporting Persons (Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein) have affirmed that they have not been convicted in a criminal proceeding or been a party to a civil proceeding related to federal or state securities laws within the last five years.

Related Party Transactions

• No related party dealings concerning BNY Mellon Strategic Municipals, Inc. are disclosed in this filing.

Stakeholder Impact

• The increased ownership by Saba Capital Management, a known activist investor, could potentially lead to future engagement with the issuer's management or board, which might influence strategic decisions, dividend policies, or fund structure, thereby impacting existing shareholders. No immediate impact on employees, customers, suppliers, or creditors is indicated.

Next Steps

• The filing does not explicitly state any future actions, events, or milestones by the Reporting Persons regarding their investment in BNY Mellon Strategic Municipals, Inc.

Key Dates

Keywords

Saba Capital Management, BNY Mellon Strategic Municipals, Schedule 13D/A, Beneficial Ownership, Investment Fund, Municipal Bonds, Share Acquisition, Boaz R. Weinstein, Activist Investor