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 upcoming contested meetings are scheduled for June 17, June 18, June 25, and June 26.
• Glass Lewis believes Saba Capital has not made a compelling case for the changes it seeks.
• Glass Lewis considers BlackRock's nominees to have more relevant and substantive professional credentials than Saba's nominees.
• 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.
• Shareholders are urged to vote on the WHITE proxy card and disregard any gold proxy cards from Saba.

Sentiment

Score: 7

Explanation: The sentiment is positive due to the support from Glass Lewis and the rejection of Saba Capital's proposals, indicating confidence in BlackRock's management and strategy. However, the ongoing proxy battle introduces some uncertainty.

Positives

• Independent proxy advisory firm Glass Lewis supports BlackRock's board nominees.
• Glass Lewis rejects Saba Capital's proposals to terminate BlackRock as investment adviser.
• BlackRock's board nominees are considered more qualified than Saba's nominees.
• BlackRock has implemented enhancements providing $2.9 billion in liquidity.
• Glass Lewis acknowledges BlackRock's funds have delivered exceptional distribution rates without excessive fees.

Negatives

• Saba Capital is attempting to terminate BlackRock as investment adviser for ten closed-end funds.
• Saba Capital's nominees are considered less qualified than BlackRock's nominees.

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 create instability for the funds.
• Forward-looking statements are subject to numerous assumptions, risks, and uncertainties.

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

• 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 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 termination or board representation.

Comparison to Industry Standards

• The document does not provide specific financial performance data to compare against industry benchmarks.
• The focus is on the proxy battle with Saba Capital and the endorsements from proxy advisory firms.
• Without detailed performance metrics, a direct comparison to industry standards is not possible.

Stakeholder Impact

• Shareholders will be impacted by the outcome of the proxy vote, which could affect the management and strategy of the funds.
• Employees of BlackRock could be affected by changes in the management of the funds.
• The outcome of the vote could impact the value and performance of the funds, affecting shareholder returns.

Next Steps

• Shareholders will vote on the board nominees and proposals at the upcoming annual meetings.
• BlackRock will continue to engage with shareholders to advocate for their 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, proxy advisory, Glass Lewis, board nominees, closed-end funds, investment adviser, shareholder vote, corporate governance, proxy fight