DEFA14A: BlackRock Defends New York Municipal Income Trust Against Saba's Proxy Fight

BlackRock urges shareholders to vote for its nominees to protect the fund's performance and income against what it characterizes as Saba's self-serving actions.

Summary

• BlackRock is actively campaigning against a proxy fight initiated by Saba Capital Management concerning the BlackRock New York Municipal Income Trust (BNY).
• BlackRock is urging shareholders to vote using the WHITE proxy card to elect its nominees, J. Phillip Holloman and Arthur P. Steinmetz.
• The firm highlights BNY's outperformance of its peers in 2023, with a total shareholder return of 8.70% compared to the peer median of 7.00%.
• BlackRock emphasizes the narrowing of BNY's discount to NAV, from 27.1% on 12/31/2022 to 13.2% on 5/24/2024.
• They also point to a 41.0% growth in sustainable distributions between May 2023 and May 2024, compared to a 29.9% growth among peers.
• BlackRock has implemented meaningful fee waivers to enhance shareholder returns.
• The document refutes Saba's claims, asserting that BlackRock CEFs have delivered consistent long-term value, generating $3.6 billion in gains in 2023 and paying $3.1 billion in annual dividends.
• BlackRock also highlights $1.3 billion in share repurchases, resulting in over $200 million in gains.
• The document criticizes Saba's track record, citing underperformance and riskier strategies in funds Saba has taken over, such as BRW.

Sentiment

Score: 7

Explanation: The document conveys a positive sentiment regarding BlackRock's management and BNY's performance, but the need to defend against a proxy fight introduces an element of concern. The tone is assertive and confident in BlackRock's ability to deliver value.

Positives

• BNY outperformed its peers in 2023, demonstrating strong performance.
• The discount to NAV has significantly narrowed, increasing shareholder value.
• Sustainable distributions have grown substantially, providing increased income to shareholders.
• Fee waivers have been implemented to maximize tax-exempt income.
• BlackRock has a long track record of delivering long-term value for CEF shareholders.

Negatives

• The document focuses on defending against a proxy fight, indicating potential concerns about shareholder activism.
• Saba's involvement suggests potential dissatisfaction among some shareholders.
• The need to actively campaign for votes implies a level of uncertainty regarding the outcome.

Risks

• The proxy fight with Saba Capital Management could lead to changes in the fund's management or strategy.
• Saba's influence could potentially shift the fund towards riskier strategies, as alleged by BlackRock.
• Market fluctuations could impact the fund's NAV and market price.

Future Outlook

The document does not provide specific forward-looking statements but implies a continuation of the current strategy and performance if BlackRock's nominees are elected.

Management Comments

• BlackRock is fighting for you.
• Defend your fund, save your income.
• BlackRock is delivering real value.
• This is no time for taking chances.
• We need all shareholders to vote on the enclosed WHITE proxy card today to preserve YOUR Fund.

Industry Context

This announcement reflects the increasing trend of shareholder activism in closed-end funds, where firms like Saba Capital seek to influence fund management for short-term gains. BlackRock's defense highlights the tension between activist demands and long-term value creation.

Comparison to Industry Standards

• The document compares BNY's performance to a peer set including MYN, MHN, VTN, NRK, NAN, PNF, PNI, and PYN.
• BNY's total shareholder return of 8.70% outperformed the peer median of 7.00% in 2023.
• BNY's distribution growth of 41.0% exceeded the peer average of 29.9% between May 2023 and May 2024.
• The document cites the underperformance of BRW (a fund taken over by Saba) compared to the BlackRock Bank Loans Funds Median since Saba's takeover.

Stakeholder Impact

• Shareholders are directly impacted by the outcome of the proxy vote, which will determine the fund's management and strategy.
• The fund's performance affects shareholders' investment returns and income.
• The proxy fight could create uncertainty and volatility in the fund's share price.

Next Steps

• Shareholders are urged to vote using the WHITE proxy card.
• Shareholders are encouraged to contact Georgeson LLC with any questions.

Key Dates

Keywords

BlackRock, Saba Capital, Proxy Fight, Closed-End Fund, Municipal Income Trust, Shareholder Value, Discount to NAV, Distributions, Fee Waivers, BNY