DEFA14A: BlackRock Receives Support from Glass Lewis in Proxy Fight Against Saba Capital

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 has recommended shareholders vote for BlackRock's board nominees and against Saba Capital's proposals to terminate BlackRock as investment adviser for ten closed-end funds.
• The recommendations apply to BlackRock Capital Allocation Term Trust (BCAT), BlackRock California Municipal Income Trust (BFZ), BlackRock Innovation and Growth Term Trust (BIGZ), BlackRock Health Sciences Term Trust (BMEZ), BlackRock New York Municipal Income Trust (BNY), BlackRock Science and Technology Term Trust (BSTZ), BlackRock ESG Capital Allocation Trust (ECAT), BlackRock MuniHoldings New York Quality Fund, Inc. (MHN), BlackRock MuniYield Pennsylvania Quality Fund (MPA), and BlackRock MuniYield New York Quality Fund, Inc. (MYN).
• Glass Lewis believes Saba Capital has failed to make a compelling case for the changes it seeks.
• Glass Lewis notes that BlackRock's board nominees have more relevant and substantive professional credentials than Saba Capital's nominees.
• Glass Lewis highlights that some funds have delivered exceptional distribution rates without excessive fees.
• BlackRock has recently announced enhancements across its closed-end fund complex, including discount management programs, distribution increases, and fee waivers, providing $2.9 billion in liquidity.

Sentiment

Score: 8

Explanation: The document presents a positive outlook for BlackRock, highlighting the support from Glass Lewis and recent enhancements to its closed-end fund complex. The tone is confident and reassuring.

Positives

• Glass Lewis's support strengthens BlackRock's position in the proxy fight against Saba Capital.
• Glass Lewis believes Saba Capital has failed to make a compelling case to support the changes it is seeking at the Fund.
• Glass Lewis states that the Management Nominees have far more relevant and substantive professional credentials than the Dissident 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 across those funds.

Risks

• The outcome of the shareholder votes on June 17, June 18, June 25 and June 26 is uncertain.
• Saba Capital's continued activism could lead to further challenges for BlackRock.

Future Outlook

BlackRock will update performance and certain other data for the funds on a monthly basis on their website in the Closed-end Funds section of www.blackrock.com, as well as certain other material information as necessary from time to time.

Management Comments

• We applaud Glass Lewis for backing our incumbent Board nominees and rejecting every Saba proposal to terminate BlackRock as investment manager.
• These recommendations, along with the strong support we received from ISS, highlight the strength of our Board members, the quality of our portfolio management team and our continued legacy of delivering for all shareholders, said R. Glenn Hubbard, Chair of the Boards of BlackRock Closed-End Funds.

Industry Context

Activist investors like Saba Capital often target closed-end funds to unlock value through various strategies, including terminating existing investment advisory agreements.

Comparison to Industry Standards

• The document does not provide specific performance metrics to compare against industry standards.
• The document mentions that some funds have delivered exceptional distribution rates without excessive fees, but does not provide specific numbers or benchmarks.

Stakeholder Impact

• Shareholders will be impacted by the outcome of the proxy vote.
• The investment advisory agreements for the closed-end funds are at stake.

Next Steps

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

Key Dates

Keywords

BlackRock, Saba Capital, proxy fight, closed-end funds, Glass Lewis, board nominees, investment adviser, shareholder vote