DEFA14A: BlackRock Urges BNY Shareholders to Vote for Board Nominees Amid Saba Capital's Challenge

BlackRock is urging shareholders of BlackRock New York Municipal Income Trust (BNY) to vote for its board nominees, highlighting increased distributions, improved discount, and strong shareholder returns, while cautioning against Saba Capital's self-interested actions.

Summary

• BlackRock is soliciting votes for its Class II Board Member Nominees for the BlackRock New York Municipal Income Trust (BNY).
• The annual meeting was adjourned to July 16 to allow more time for voting.
• BlackRock highlights a 41% increase in distributions since 2023 and a 3% improvement in the discount, generating $9 million in value for shareholders.
• The fund has delivered total shareholder returns of 7.6% since 2023, which is more than double its peers.
• BlackRock is cautioning against voting for Saba Capital's nominees, claiming they are underqualified and prioritize their own profits over the fund's shareholders.
• Independent proxy advisors ISS and Glass Lewis recommend voting FOR ALL Board nominees.
• Shareholders are instructed to vote using the WHITE proxy card and disregard any gold proxy cards from Saba Capital.

Sentiment

Score: 7

Explanation: The document conveys a positive sentiment regarding BlackRock's performance and a negative sentiment towards Saba Capital's involvement. The emphasis on increased distributions and strong returns contributes to the positive score, while the warnings about Saba temper it.

Positives

• Distributions have increased by 41% since 2023.
• The discount has improved by 3%, generating $9 million in value for shareholders.
• Total shareholder returns of 7.6% since 2023, more than double peers.
• Independent proxy advisors ISS and Glass Lewis recommend voting for BlackRock's nominees.

Negatives

• Saba Capital is attempting to gain control of the fund.
• Saba's nominees are described as underqualified and self-interested.
• Saba has never launched a closed-end fundjust taken them over.

Risks

• Saba Capital's involvement could lead to riskier strategies and increased fees.
• Saba's actions may not serve the investment goals of all shareholders.
• The market value and net asset value (NAV) of the fund's shares will fluctuate with market conditions.

Future Outlook

The document focuses on the immediate action of voting for board nominees and does not provide a detailed future outlook for the fund's performance.

Management Comments

• BlackRock and your Board continue to deliver for you.
• Your Board nominees are trusted fiduciaries with a strong track record of protecting your long-term investment.
• Saba's true aim is a quick profit for themselves at the expense of your Fund and shareholders like you.
• Saba's nominees are underqualified, have zero closed-end fund expertise and are beholden to Saba's interests, not yours.

Industry Context

This announcement reflects the ongoing activist investor activity in the closed-end fund space, where firms like Saba Capital seek to influence fund management for potential short-term gains. BlackRock is positioning itself as a stable, shareholder-focused manager in contrast to Saba's perceived opportunistic approach.

Comparison to Industry Standards

• The document compares BNY's total shareholder return to its peers in the Morningstar Muni New York Long category, stating that BNY's 7.6% return is more than double the peer average.
• It does not provide specific comparisons to individual funds or benchmarks beyond this peer group comparison.

Stakeholder Impact

• Shareholders are directly impacted by the outcome of the proxy vote, which will determine the composition of the board.
• The fund's performance and management strategies will affect shareholder returns.
• Employees of BlackRock may be indirectly affected by the outcome of the proxy vote, as it could influence the fund's management and direction.

Next Steps

• Shareholders need to vote on the Class II Board Member Nominees before the deadline.
• Shareholders should disregard any proxy cards received from Saba Capital and only use the WHITE proxy card from BlackRock.

Key Dates

Keywords

BlackRock, BNY, Saba Capital, proxy vote, board nominees, shareholders, closed-end fund, municipal income trust, distributions, discount, total shareholder return