DEFA14A: ISS Recommends Shareholders Support BlackRock Board Nominees, Reject Saba's Proposals at Multiple Closed-End Funds

Institutional Shareholder Services (ISS) recommends shareholders vote for BlackRock's board nominees and against Saba Capital Management's proposals to terminate BlackRock as investment adviser at several closed-end funds.

Summary

• ISS, a leading independent proxy advisory firm, has issued supportive reports for BlackRock and its Board nominees at several closed-end funds.
• ISS recommends shareholders vote against all proposals by Saba Capital Management to terminate BlackRock as investment adviser for multiple funds including BCAT, BFZ, BIGZ, BMEZ, BSTZ and ECAT.
• ISS recommends shareholders vote for all BlackRock Board nominees at BCAT, BMEZ, BNY, and MPA.
• ISS recommends shareholders vote for Board nominee Arthur Steinmetz at both MHN and MYN.
• ISS rejected the nominees put forth by Saba at the majority of the funds.
• 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.
• Shareholder meetings will be held on various dates in June 2024 for different funds.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as ISS's recommendations support BlackRock's management and board nominees, indicating confidence in their stewardship. However, the acknowledgment of some dissenting views and the inherent risks in forward-looking statements temper the overall positivity.

Positives

• ISS support validates BlackRock's investment experience and the Boards track record of stewardship.
• ISS recognizes improvements in fund returns and narrower discounts to NAV for funds like BCAT and ECAT.
• BlackRock's enhancements provide $2.9 billion in liquidity across its closed-end funds.
• ISS acknowledges that some funds have competitive distributions and fees.

Negatives

• ISS did not support BlackRock's nominees at BIGZ and ECAT.
• ISS acknowledges the potential lack of independence of Saba's nominees.

Risks

• The document mentions that forward-looking statements are subject to numerous assumptions, risks, and uncertainties.
• Factors such as changes in market conditions, investment performance, competition, legal proceedings, and regulatory actions could affect actual results.
• Terrorist activities, international hostilities, health epidemics, pandemics and natural disasters may adversely affect the general economy.

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 assumptions, risks, and uncertainties.

Management Comments

• R. Glenn Hubbard, Chair of the Boards of BlackRock Closed-End Funds, stated that the ISS recommendations speak to BlackRock's depth of investment experience and the Boards track record of stewardship.
• Hubbard added that the Board believes their nominees are the right stewards to represent all shareholders.

Industry Context

This announcement reflects the ongoing engagement between activist investors like Saba Capital and established asset managers like BlackRock in the closed-end fund space, where activists often seek to unlock value through various means, including changes in management or fund strategy.

Comparison to Industry Standards

• The document mentions Liberty All-Star Growth Fund, Inc. (ASG) as a point of comparison for BIGZ's distribution rate.
• The document references peer performance in terms of total shareholder return (TSR) and discount to net asset value (NAV) when discussing BCAT and ECAT.

Stakeholder Impact

• Shareholders are directly impacted by the voting recommendations, which will influence the composition of the board and the management of the funds.
• BlackRock's reputation and management of the funds are either validated or challenged based on the outcome of the shareholder votes.
• Saba Capital's influence and potential to enact changes within the funds are either strengthened or diminished based on the voting results.

Next Steps

• Shareholders are urged to vote using the WHITE proxy card.
• Shareholders are advised not to send back any gold proxy card they may receive from Saba.
• Shareholders are encouraged to contact Georgeson LLC with any questions about the nominees or proposals.

Key Dates

Keywords

BlackRock, ISS, Saba Capital, Proxy, Closed-End Funds, Board Nominees, Investment Adviser, Shareholders, Voting Recommendations, BCAT, BMEZ, BNY, MPA, BFZ, BIGZ, BSTZ, ECAT, MHN, MYN