DEFA14A: BlackRock Urges Shareholders to Reject Saba Capital's Board Nominees and Investment Management Termination Proposal

BlackRock is urging shareholders to vote against Saba Capital's proposals to install its own nominees and terminate BlackRock's investment management agreement for certain closed-end funds.

Summary

• BlackRock is asking shareholders to vote using the WHITE proxy card to reject Saba Capital Management's proposals at the upcoming annual meetings for BlackRock New York Municipal Income Trust (BNY) and BlackRock Science and Technology Term Trust (BSTZ).
• Saba is attempting to install its own hand-picked nominees with little to no experience and, in some instances, fire BlackRock as investment manager of one or more CEFs.
• BlackRock argues that Saba's actions are self-serving and aimed at making a quick profit at the expense of shareholders.
• Independent proxy advisory firms Institutional Shareholder Services Inc. (ISS) and Glass Lewis have recommended that shareholders vote with BlackRock's nominees at BNY and BSTZ.
• BlackRock defends its performance, stating that it has improved discounts and outperformed benchmarks in recent years.
• The company encourages shareholders to contact Georgeson LLC for any questions about the proposals.

Sentiment

Score: 6

Explanation: The document conveys a defensive stance, highlighting both positive aspects of BlackRock's performance and negative aspects of Saba's proposals. The sentiment is neutral to slightly positive, as BlackRock is actively trying to reassure shareholders.

Positives

• Leading independent proxy advisory firms ISS and Glass Lewis support BlackRock's nominees.
• BlackRock highlights its strong performance and improved discounts in recent years.
• BlackRock's experienced portfolio managers, including Sean Carney, are managing the CEFs.

Negatives

• Saba Capital is attempting to install its own nominees, potentially disrupting the current board.
• Saba Capital is proposing to terminate BlackRock's investment management agreement for BSTZ.
• BlackRock accuses Saba of acting in its own self-interest at the expense of shareholders.

Risks

• If Saba's proposals are approved, there could be changes in the board and investment management of the funds.
• Saba's actions could create uncertainty and potentially impact the funds' performance.
• There is a risk that Saba's proposals could lead to a quick profit for Saba at the expense of long-term shareholders.

Future Outlook

BlackRock is focused on defending its board nominees and investment management agreements to ensure the long-term interests of shareholders are protected.

Management Comments

• BlackRock believes Saba Capital is seeking to benefit itself by making a quick profit at the expense of shareholders.
• BlackRock asserts that its CEFs are performing as intended, with improved discounts and outperformance of benchmarks.

Industry Context

Activist investors like Saba Capital often target closed-end funds to unlock value by influencing management and fund strategy. This proxy battle reflects a broader trend of increased shareholder activism in the investment management industry.

Comparison to Industry Standards

• BlackRock's defense against Saba Capital's proposals is similar to other instances where established fund managers have resisted activist campaigns.
• The support from ISS and Glass Lewis aligns with industry norms where independent proxy advisors play a crucial role in guiding shareholder votes.
• BlackRock's emphasis on its performance and improved discounts is a common tactic used by fund managers to demonstrate their value to shareholders.

Stakeholder Impact

• Shareholders could be impacted by changes in the board and investment management of the funds.
• The outcome of the proxy vote could affect the funds' performance and long-term value.
• Employees of BlackRock could be affected if the investment management agreement for BSTZ is terminated.

Next Steps

• Shareholders are urged to vote on the proposals.
• BlackRock will continue to engage with shareholders to advocate for its board nominees and investment management agreements.

Keywords

BlackRock, Saba Capital, proxy, shareholders, closed-end funds, BNY, BSTZ, nominees, investment management, proxy vote