DEFA14A: BlackRock Board Nominees Gain Support from Glass Lewis Amidst Saba Capital Challenge

Glass Lewis recommends shareholders vote for BlackRock's board nominees and against Saba Capital's proposals to terminate BlackRock as investment adviser for ten closed-end funds.

Summary

• BlackRock announced that Glass Lewis, a leading independent proxy advisory firm, supports the reelection of all BlackRock's board nominees.
• Glass Lewis recommends voting against all proposals by Saba Capital Management to terminate BlackRock as the investment adviser for ten closed-end funds.
• The recommendations pertain to BlackRock Capital Allocation Term Trust, BlackRock California Municipal Income Trust, BlackRock Innovation and Growth Term Trust, BlackRock Health Sciences Term Trust, BlackRock New York Municipal Income Trust, BlackRock Science and Technology Term Trust, BlackRock ESG Capital Allocation Trust, BlackRock MuniHoldings New York Quality Fund, Inc., BlackRock MuniYield Pennsylvania Quality Fund, and BlackRock MuniYield New York Quality Fund, Inc.
• Glass Lewis believes Saba Capital has failed to make a compelling case for the changes it seeks.
• Glass Lewis states that BlackRock's nominees have more relevant and substantive professional credentials than Saba's nominees.
• BlackRock recently announced enhancements across its closed-end fund complex, including discount management programs, distribution increases, and fee waivers, providing $2.9 billion in liquidity.
• Shareholder meetings are scheduled for June 17, June 18, June 25, and June 26.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the support from Glass Lewis, which strengthens BlackRock's position against Saba Capital. However, the ongoing challenge from Saba introduces some uncertainty.

Positives

• Glass Lewis supports BlackRock's board nominees.
• Glass Lewis rejects Saba Capital's proposals.
• BlackRock's board nominees are considered more qualified.
• BlackRock has implemented enhancements providing $2.9 billion in liquidity.
• Glass Lewis believes the boards recent actions, particularly the distribution rate increase, are more likely to have been the main contributing factor to the recent narrowing of the Funds NAV discount.

Negatives

• Saba Capital is attempting to terminate BlackRock as investment adviser for several funds.
• Saba Capital's nominees are considered less qualified by Glass Lewis.

Risks

• The outcome of the shareholder votes is uncertain.
• Potential for changes in political, economic, or industry conditions could impact the funds.
• Increased competition could affect the funds' performance.
• Unfavorable resolution of legal proceedings could negatively impact the funds.
• Technological changes could have an impact on the funds.
• Legislative and regulatory actions and reforms could affect the funds.
• Terrorist activities, international hostilities, health epidemics and/or pandemics and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock.

Future Outlook

The document contains forward-looking statements subject to risks and uncertainties, and actual results could differ materially from those anticipated.

Management Comments

• R. Glenn Hubbard, Chair of the Boards of BlackRock Closed-End Funds, stated that the recommendations highlight the strength of the Board members, the quality of the portfolio management team and BlackRock's continued legacy of delivering for all shareholders.

Industry Context

This announcement reflects ongoing activist investor activity in the closed-end fund space, where firms like Saba Capital seek to influence fund management and strategy.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards beyond noting that Glass Lewis believes BlackRock's nominees are more qualified than Saba's.
• The document does not provide specific comparisons to industry standards beyond noting that Glass Lewis believes the boards recent actions, particularly the distribution rate increase, are more likely to have been the main contributing factor to the recent narrowing of the Funds NAV discount.

Stakeholder Impact

• Shareholders will be impacted by the outcome of the vote on board nominees and the potential termination of BlackRock as investment adviser.
• The $2.9 billion in liquidity from BlackRock's enhancements could benefit shareholders.
• The outcome of the proxy contest could impact the funds' investment strategies and performance.

Next Steps

• Shareholders will vote on the board nominees and Saba Capital's proposals at the upcoming meetings in June.
• BlackRock will continue to update performance and other data for the funds on its website.

Key Dates

Keywords

BlackRock, Saba Capital, Glass Lewis, proxy, board nominees, closed-end funds, investment adviser, shareholder vote, BFZ, BCAT, BIGZ, BMEZ, BNY, BSTZ, ECAT, MHN, MPA, MYN