DEFA14A: BlackRock Science and Technology Term Trust Urges Shareholders to Vote in Upcoming Annual Meeting

BlackRock Science and Technology Term Trust (BSTZ) encourages shareholders to vote FOR the Board's nominees and AGAINST the proposal to terminate BlackRock as the investment manager at the upcoming annual meeting on July 16.

Summary

• BlackRock Science and Technology Term Trust (BSTZ) is urging shareholders to vote at the annual meeting scheduled for July 16.
• The Board recommends voting FOR the election of its Class II Board Member Nominees.
• The Board also recommends voting AGAINST the proposal to terminate BlackRock as BSTZ's investment manager.
• Since 2023, BSTZ has delivered a 29% total shareholder return, outperforming its peers.
• The fund has generated $118 million in value for shareholders through a 9% discount improvement.
• BSTZ offers an additional 10% annual liquidity at NAV through its discount management program.
• Shareholders are encouraged to vote online before the meeting.

Sentiment

Score: 7

Explanation: The document presents a positive outlook with strong performance metrics and active discount management, but the presence of a proposal to terminate the investment manager introduces a note of caution.

Positives

• BSTZ has delivered a 29% total shareholder return since 2023, outperforming its peers.
• The fund has generated $118 million in value for shareholders through a 9% discount improvement.
• BSTZ offers an additional 10% annual liquidity at NAV through its discount management program.
• The Board is actively working to enhance shareholder value.

Risks

• The document highlights a proposal to terminate BlackRock as BSTZ's investment manager, indicating potential disagreement or dissatisfaction among some shareholders.
• The fund's discount management program is contingent on the fund's common shares trading at a discount of more than 7.5% during specific quarters, which may not always occur.

Future Outlook

The fund intends to offer to repurchase 2.5% of its outstanding common shares at a price equal to 98% of NAV following the end of applicable quarters if the fund's common shares trade at a discount of more than 7.5% during each of the quarters ended 6/30/24, 9/30/24, 12/31/24 and 3/31/25.

Management Comments

• Your Board consistently takes actions that enhance the value of your investment.
• The Board recommends voting FOR the Boards Class II Board Member Nominees.
• The Board recommends voting AGAINST Sabas proposal to terminate BlackRock as BSTZs investment manager.

Industry Context

This announcement is typical for closed-end funds, particularly those managed by large firms like BlackRock, to ensure shareholder participation in key decisions such as board elections and management agreements. The focus on discount management and shareholder returns reflects the competitive landscape of closed-end funds, where attracting and retaining investors is crucial.

Comparison to Industry Standards

• The document benchmarks BSTZ's performance against the MSCI custom ACWI SMID Growth IT Call Overwrite Index (ex-BSTZ).
• A 29% total shareholder return since 2023 is a strong performance metric, suggesting BSTZ is competitive within its peer group of technology-focused closed-end funds.
• Discount management programs are common in the closed-end fund industry to address the issue of funds trading below their net asset value; the specifics of BSTZ's program (repurchasing 2.5% of shares at 98% of NAV if the discount exceeds 7.5%) are fairly standard.

Stakeholder Impact

• Shareholders are directly impacted by the voting decisions regarding board members and the investment manager.
• The discount management program aims to benefit shareholders by increasing liquidity and potentially reducing the discount to NAV.

Next Steps

• Shareholders are encouraged to vote before the annual meeting on July 16.
• The fund will assess its discount levels quarterly to determine if share repurchases are necessary.

Key Dates

Keywords

BlackRock, BSTZ, shareholder, vote, annual meeting, investment manager, discount, liquidity, nominees