DEFA14A: BlackRock Board Nominees Gain Support from Glass Lewis Amidst Saba Capital Challenge

Glass Lewis recommends shareholders vote for BlackRock's board nominees and against Saba Capital's proposals to terminate BlackRock as investment adviser for ten closed-end funds.

Summary

• BlackRock announced that Glass Lewis, a leading independent proxy advisory firm, supports the reelection of all BlackRock's board nominees.
• Glass Lewis recommends voting against all proposals by Saba Capital Management to terminate BlackRock as the investment adviser for ten closed-end funds.
• The recommendations pertain to BlackRock Capital Allocation Term Trust (BCAT), BlackRock California Municipal Income Trust (BFZ), BlackRock Innovation and Growth Term Trust (BIGZ), BlackRock Health Sciences Term Trust (BMEZ), BlackRock New York Municipal Income Trust (BNY), BlackRock Science and Technology Term Trust (BSTZ), BlackRock ESG Capital Allocation Trust (ECAT), BlackRock MuniHoldings New York Quality Fund, Inc. (MHN), BlackRock MuniYield Pennsylvania Quality Fund (MPA), and BlackRock MuniYield New York Quality Fund, Inc. (MYN).
• Glass Lewis believes Saba Capital has not made a compelling case to support the changes it is seeking.
• Glass Lewis considers BlackRock's nominees to have more relevant and substantive professional credentials than Saba's nominees.
• BlackRock recently announced enhancements across its closed-end fund complex, including discount management programs, distribution increases, and fee waivers, providing $2.9 billion in liquidity.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as it highlights support from Glass Lewis for BlackRock's board nominees and a rejection of Saba Capital's proposals. However, the presence of a contested proxy battle introduces some uncertainty.

Positives

• Glass Lewis supports BlackRock's board nominees, reinforcing confidence in their capabilities.
• Glass Lewis rejects Saba Capital's proposals, indicating a lack of support for their proposed changes.
• BlackRock's board nominees are considered more qualified than Saba's nominees.
• BlackRock's recent enhancements, including discount management programs and distribution increases, provide $2.9 billion in liquidity.

Negatives

• Saba Capital is attempting to terminate BlackRock as the investment adviser for several closed-end funds, creating uncertainty.
• Saba Capital's nominees are considered less qualified than BlackRock's nominees.

Risks

• The outcome of the shareholder votes on June 17, June 18, June 25 and June 26 is uncertain and could impact the management of the funds.
• Potential for changes in fund management if Saba Capital's proposals gain traction.
• The document mentions forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time.

Future Outlook

The document contains forward-looking statements regarding BlackRock's and the funds' future financial or business performance, strategies, or expectations, which are subject to risks and uncertainties.

Management Comments

• R. Glenn Hubbard, Chair of the Boards of BlackRock Closed-End Funds, stated that the recommendations from Glass Lewis and ISS highlight the strength of the Board members, the quality of the portfolio management team, and the continued legacy of delivering for all shareholders.

Industry Context

This announcement reflects the ongoing activism in the closed-end fund space, where dissident shareholders like Saba Capital seek to influence fund management and strategy. Proxy advisory firms like Glass Lewis and ISS play a crucial role in guiding shareholder voting decisions.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards in terms of financial performance.
• However, it highlights that the funds have been able to deliver exceptional distribution rates without paying excessive fees and other expenses, which could be considered a positive comparison to peers.
• The document also mentions that the Funds comparative performance in terms of both premium/discount to NAV and TSR have been in line with or even outperformed peers, while being able to maintain an attractive distribution rate and expense ratio.

Stakeholder Impact

• Shareholders will be impacted by the outcome of the vote, which will determine the management and direction of the funds.
• Employees of BlackRock could be affected by changes in fund management.
• The outcome could impact the funds' investment strategies and performance, affecting returns for investors.

Next Steps

• Shareholders will vote on the board nominees and proposals at the upcoming annual meetings on June 17, June 18, June 25 and June 26.
• BlackRock will continue to update performance and other data for the funds on their website.

Key Dates

Keywords

BlackRock, Saba Capital, Glass Lewis, Proxy, Board Nominees, Closed-End Funds, Investment Adviser, Shareholder Vote