DEFA14A: BlackRock Wins Key Proxy Advisor Support in 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 advisor 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 and opposes all proposals from Saba Capital Management to terminate BlackRock as investment advisor for ten closed-end funds.
• Glass Lewis recommends shareholders vote on the WHITE proxy card for BlackRock's nominees at several funds, including BlackRock Capital Allocation Term Trust, BlackRock California Municipal Income Trust, and BlackRock MuniHoldings New York Quality Fund, Inc.
• Glass Lewis believes Saba Capital has failed to make a compelling case for the changes it seeks and that BlackRock's nominees are more qualified.
• BlackRock highlights enhancements across its closed-end fund complex, including discount management programs, distribution increases, and fee waivers, providing $2.9 billion in liquidity.
• Shareholders are urged to vote using the WHITE proxy card and disregard any gold proxy cards from Saba Capital.

Sentiment

Score: 8

Explanation: The document conveys a positive sentiment due to the support from Glass Lewis and the emphasis on BlackRock's strong performance and enhancements to its fund complex. The tone is confident and reassuring.

Positives

• Independent proxy advisor Glass Lewis supports BlackRock's board nominees.
• Glass Lewis rejects Saba Capital's proposals to terminate BlackRock as investment advisor.
• BlackRock has implemented enhancements providing $2.9 billion in liquidity across its closed-end funds.
• Glass Lewis acknowledges the exceptional distribution rates delivered by some of the funds without excessive fees.
• Glass Lewis notes that 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.

Risks

• The document mentions forward-looking statements are subject to numerous assumptions, risks, and uncertainties, including changes in market conditions, investment performance, and regulatory actions.
• The document mentions potential impacts from 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 regarding BlackRock's and the funds' future financial or business performance, strategies, or expectations, but cautions that these are subject to numerous 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 the continued legacy of delivering for all shareholders.

Industry Context

This announcement reflects the ongoing trend of activist investors challenging established asset managers in the closed-end fund space, seeking to unlock value through various strategies such as fund terminations or changes in investment strategy.

Comparison to Industry Standards

• The document references total shareholder return (TSR) and premium/discount to NAV as metrics for comparative performance, which are standard benchmarks in the closed-end fund industry.
• The document does not provide specific comparisons to named competitors or industry benchmarks, but it implies that BlackRock's funds are performing competitively based on Glass Lewis's assessment.

Stakeholder Impact

• Shareholders are directly impacted by the outcome of the proxy vote, which will determine the composition of the board and the future management of the funds.
• The outcome could affect the funds' investment strategies, distribution rates, and overall performance, impacting shareholder returns.

Next Steps

• Shareholders are encouraged to vote using the WHITE proxy card before the upcoming meetings.
• BlackRock will continue to update performance and other data for the funds on its website.

Key Dates

Keywords

BlackRock, Saba Capital, Proxy Fight, Closed-End Funds, Glass Lewis, Board Nominees, Investment Advisor, Shareholder Vote