DEFA14A: BlackRock Urges Investors to Defend Funds Against Saba's Proxy Fight

BlackRock is urging shareholders of BNY and BSTZ to vote for their board nominees, claiming Saba Capital is attempting to drown out the voices of individual investors.

Summary

• BlackRock is actively campaigning to encourage shareholders of BlackRock New York Municipal Income Trust (BNY) and BlackRock Science and Technology Trust (BSTZ) to vote for BlackRock's board nominees.
• The campaign highlights that Saba Capital is attempting to gain enough votes to influence the outcome of the annual meetings.
• BlackRock claims preliminary results from recent shareholder meetings indicate that shareholders are rejecting Saba's nominees and efforts to replace BlackRock as investment advisor at certain contested closed-end funds (CEFs).
• The company urges investors to vote 'FOR' BlackRock board nominees.

Sentiment

Score: 6

Explanation: The sentiment is neutral to slightly positive as BlackRock is actively defending its position and claims shareholders are supporting them. However, the presence of a proxy fight introduces uncertainty.

Positives

• BlackRock highlights preliminary results suggesting shareholders are rejecting Saba's proposals.

Risks

• The proxy fight with Saba Capital introduces uncertainty regarding the future governance and investment advisory arrangements of BNY and BSTZ.

Future Outlook

The outcome of the shareholder votes will determine the composition of the board and potentially the investment advisor for BNY and BSTZ.

Management Comments

• R. Glenn Hubbard, Chair of the Board of BlackRock Closed-End Funds, states that Saba is attempting to 'buy enough votes to drown out the voices of tens of thousands of individual investors'.
• A BlackRock spokesperson said to Reuters, 6/25/24, that preliminary results from recent shareholder meetings show that shareholders have rejected both Saba's nominees and its efforts to replace BlackRock as investment advisor at certain contested closed-end funds (CEFs).

Industry Context

Activist investors like Saba Capital often target closed-end funds to unlock value or influence management decisions, leading to proxy fights and potential changes in fund strategy.

Stakeholder Impact

• The outcome of the proxy fight will impact shareholders of BNY and BSTZ, potentially affecting the fund's investment strategy and performance.

Next Steps

• Shareholders of BNY and BSTZ will vote on the board nominees at the upcoming annual meetings.

Keywords

BlackRock, Saba Capital, proxy fight, shareholders, board nominees, BNY, BSTZ, closed-end funds, investment advisor