SCHEDULE: Saba Capital Boosts Stake in Virtus Dividend Fund to 9.57%

Saba Capital Management, L.P. and its affiliates have increased their beneficial ownership in Virtus Dividend, Interest and Premium Strategy Fund to 9.57%.

Summary

• Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein (the "Reporting Persons") collectively beneficially own 9,008,235 common shares of Virtus Dividend, Interest and Premium Strategy Fund.
• This represents 9.57% of the issuer's common shares outstanding, calculated based on 94,101,764 shares as of July 31, 2025.
• The total cost to acquire these shares was approximately $110,219,429.
• Funds for the acquisition were sourced from investor subscription proceeds, capital appreciation, and margin account borrowings.
• Transactions in the past 60 days prior to January 14, 2026, included multiple open market purchases and one sale, resulting in a net acquisition of 1,233,157 shares.

Sentiment

Score: 7

Explanation: The increased stake by Saba Capital, a prominent activist investor, is generally viewed positively by the market as it often signals potential for value creation through governance changes or other strategic initiatives. While no specific plans are disclosed, the accumulation of shares suggests a strategic interest.

Positives

• Increased stake by a prominent activist investor group, potentially signaling confidence or intent to drive value.
• Significant investment of approximately $110.2 million in the fund.

Negatives

• One sale transaction occurred on January 8, 2026, for 15,681 shares at $13.20, which could indicate some profit-taking or portfolio rebalancing.

Risks

• The filing states 'Purpose of Transaction: Not Applicable,' meaning no specific activist intent or risk is declared in this amendment beyond the investment itself.

Future Outlook

The filing states 'Purpose of Transaction: Not Applicable,' indicating no specific future plans or intentions regarding the issuer's business, management, or corporate structure are being disclosed at this time beyond the investment itself.

Industry Context

This filing reflects an increased stake by Saba Capital, a known activist investor in closed-end funds. Such increased ownership often precedes or accompanies efforts to influence fund management, governance, or distribution policies, aiming to narrow discounts to Net Asset Value (NAV) common in the closed-end fund sector. This aligns with a broader trend of activist investors targeting closed-end funds to unlock shareholder value.

Comparison to Industry Standards

• NA

Legal Proceedings

• The Reporting Persons (Saba Capital Management, L.P., Saba Capital Management GP, LLC, and Boaz R. Weinstein) have not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) during the last five years.
• The Reporting Persons have not been a party to a civil proceeding of a judicial or administrative body of competent jurisdiction resulting in a judgment, decree, or final order enjoining future violations of, or prohibiting or mandating activities subject to, Federal or State securities laws, or finding any violation with respect to such laws, during the last five years.

Stakeholder Impact

• Shareholders may anticipate potential future engagement or proposals from Saba Capital aimed at enhancing shareholder value, given their history as an activist investor.
• The increased ownership could lead to greater scrutiny of the fund's management and governance practices.

Next Steps

• The filing states 'Purpose of Transaction: Not Applicable,' meaning no specific future actions or milestones are explicitly mentioned by the Reporting Persons in this amendment.

Key Dates

Recommendation

While Saba Capital's increased stake could be a catalyst for future value creation, the filing itself does not disclose any specific plans or intentions beyond the investment. Investors should 'hold' to observe any subsequent actions or communications from Saba Capital or the fund's management that might clarify the strategic implications of this increased ownership. A 'buy' or 'sell' recommendation would require more concrete information regarding Saba Capital's intentions or the fund's underlying performance.

Keywords

Saba Capital Management, Virtus Dividend Fund, Schedule 13D, Beneficial Ownership, Investment Fund, Closed-End Fund, Shareholder Activism, Boaz Weinstein