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

Glass Lewis recommends voting 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 all BlackRock board nominees and against all proposals by Saba Capital Management 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 stated that BlackRock's nominees have more relevant 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.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the support from Glass Lewis and the board's confidence in their performance, although the challenge from Saba Capital introduces some uncertainty.

Positives

• Glass Lewis's support for BlackRock's board nominees validates the strength of the board members and the quality of the portfolio management team.
• BlackRock has a legacy of delivering for all shareholders.
• BlackRock's nominees have more relevant professional credentials than Saba's nominees, according to Glass Lewis.
• BlackRock's recent enhancements across its closed-end fund complex, including discount management programs, distribution increases, and fee waivers, provide $2.9 billion in liquidity.

Negatives

• Saba Capital Management is attempting to terminate BlackRock as investment adviser for ten closed-end funds, indicating potential dissatisfaction among some shareholders.

Risks

• The document mentions forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which change over time.
• Factors such as changes in political, economic, or industry conditions, interest rate environment, and regulatory actions could affect the funds' performance.

Future Outlook

The document contains forward-looking statements regarding BlackRock's and the funds' future financial or business performance, strategies, or expectations, which are subject to risks and uncertainties.

Management Comments

• R. Glenn Hubbard, Chair of the Boards of BlackRock Closed-End Funds, stated that the recommendations from Glass Lewis and ISS 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 the ongoing engagement between activist investors like Saba Capital and established asset managers like BlackRock, a common theme in the closed-end fund space where discounts to net asset value can attract activist attention.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards.
• However, the mention of total shareholder return (TSR) and premium/discount to NAV are common metrics used to evaluate closed-end fund performance relative to peers.

Stakeholder Impact

• Shareholders are directly impacted by the outcome of the vote on board nominees and the potential termination of BlackRock as investment adviser.
• The outcome could affect the funds' performance, distribution rates, and overall investment strategy.

Next Steps

• Shareholders are encouraged to vote on the WHITE proxy card to support BlackRock's board nominees.
• BlackRock will update performance and certain other data for the funds on a monthly basis on their website.

Key Dates

Keywords

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