Saba Capital Corrects BlackRock’s Intentionally False and Misleading 2024 Annual Meeting Results
July 01 2024 - 8:00AM
Business Wire
BlackRock Materially Misled Stakeholders by
Announcing Results That Exclude All of Saba's Votes and Other
Supportive Shareholders
Shareholders Voted for Each of Saba’s Nominees
by Wide Margin in Two of BlackRock’s Largest Funds – BIGZ and ECAT
– and Potentially Other Funds That Have Yet to Be Tallied
BlackRock’s Outrageous Behavior Follows the
Court Reaffirming That BlackRock Violated Federal Law and the Court
Permitting Saba’s Lawsuit to Overturn the Manager’s Rigged Election
System to Proceed to Trial
Saba Capital Management, L.P. (together with certain of its
affiliates, “Saba” or “we”) today issued a statement regarding its
campaign to improve the Boards of Trustees of 10 poorly governed
and underperforming closed-end funds managed by BlackRock Advisors,
LLC (“BlackRock”) and BlackRock’s intentionally false and
misleading press release issued on June 28, 2024.
Boaz Weinstein, Founder and Chief Investment Officer of Saba,
said:
“Our campaign shined a light on BlackRock’s hypocrisy as an ESG
profiteer, while maintaining shameful governance at its own
closed-end funds. There is a great injustice that continues as
BlackRock refuses to let its fund owners have their voices heard.
This is particularly intolerable considering the significant
financial losses shareholders have suffered as nine out of the ten
BlackRock funds have delivered negative returns over the last three
years. BlackRock’s Friday press release only added insult to injury
by making clear the manager’s disdain for its investors. In
removing Saba’s votes and others who also voted for Saba's nominees
from its 2024 Annual Meeting vote tally, BlackRock has slumped to a
new low where anything goes – even outright deceit.
BlackRock has created an unlevel playing field by manufacturing
rigged elections that allow its hand-picked trustees to serve
indefinitely. According to BlackRock’s rules, if 52 people show up
to vote out of 100 registered voters, the winning party must
receive support from 50 of them – or 96% of the votes. It's a fact
that shareholders by a huge margin chose Saba’s nominees for BIGZ
and ECAT (and potentially other funds that have yet to be tallied).
In some cases, Saba received roughly 2x the votes BlackRock did.
Yet, BlackRock is undeterred from blissfully ignoring the outcome
and issuing a statement that falsely claims victory – when in
actuality they lost in a landslide.
BlackRock’s flagrant disregard for the truth and its investors
is unacceptable. While the world’s largest asset manager has
attempted to paint Saba as a self-serving investor with undue
influence, the courts have upheld that every share gets to vote.
Saba is proud to have clients that include millions of U.S. pension
employees who are invested in a strategy that has fixed dozens of
broken closed-end funds. BlackRock, on the other hand, was found to
have violated federal law because it stripped votes last year,
removed Saba’s holdings from its vote tally this year and continues
to maintain a rigged election system across its closed-end funds.
Looking ahead, we plan to hold BlackRock accountable in court for
its continued flouting of federal law. Shareholders deserve to have
their voices heard.”
Preliminary Voting
Results of BIGZ and ECAT 2024 Annual Meetings
BlackRock Innovation and
Growth Term Trust (NYSE: BIGZ)
Saba's Nominees
For
Against
Abstain
Ilya Gurevich
72,812,673
832,071
190,258
Shavar Jeffries
72,826,638
819,106
189,258
Jennifer Raab
57,240,005
16,404,612
190,383
David Littlewood
57,249,664
16,395,482
189,953
David Locala
72,842,321
805,353
187,328
Athanassios Diplas
72,801,186
845,813
188,003
Alexander Vindman
57,195,707
16,452,550
186,743
BlackRock's Nominees
For
Against
Abstain
Cynthia L. Egan
38,341,904
3,833,235
823,249
Lorenzo A. Flores
38,038,290
3,905,798
1,054,298
Stayce D. Harris
38,243,188
3,891,512
863,685
R. Glenn Hubbard
38,086,316
3,858,382
1,047,546
W. Carl Kester
37,114,615
3,800,479
1,075,378
Catherine A. Lynch
37,418,793
3,707,175
870,507
John M. Perlowski
37,178,273
3,751,995
1,060,203
BlackRock ESG Capital
Allocation Term Trust (NYSE: ECAT)
Saba's Nominees
For
Against
Abstain
Ilya Gurevich
39,264,545
395,713
254,417
Shavar Jeffries
31,744,622
7,915,360
254,694
Jennifer Raab
31,907,192
7,917,088
90,396
David Littlewood
31,740,433
7,914,772
259,471
David Locala
31,740,483
7,913,974
260,219
Athanassios Diplas
39,427,016
393,852
93,807
Alexander Vindman
31,728,232
7,931,861
254,583
BlackRock's Nominees
For
Against
Abstain
Cynthia L. Egan
21,151,631
939,349
348,214
Lorenzo A. Flores
21,143,312
943,681
352,203
Stayce D. Harris
21,174,760
924,446
339,989
R. Glenn Hubbard
21,103,305
965,253
370,637
W. Carl Kester
21,110,233
952,498
376,465
Catherine A. Lynch
21,199,975
913,496
325,724
John M. Perlowski
21,111,719
966,584
360,894
Update on Saba’s Legal
Proceedings Against BlackRock
Earlier this week, the U.S. District Court for the Southern
District of New York denied BlackRock’s motion to dismiss Saba’s
lawsuit against the BlackRock ESG Capital Allocation Term Trust
(NYSE: ECAT) (“ECAT”) and all 10 of its incumbent trustees. The
court’s ruling paves the way for Saba’s lawsuit to proceed to
trial. There, we plan to hold ECAT and its trustees accountable for
adopting an illegal “Entrenchment Bylaw” that deprives shareholders
of their right to elect directors annually.
Additionally, the U.S. Court of Appeals for the Second Circuit
reaffirmed an earlier ruling that 11 closed-end funds, including
two managed by BlackRock, illegally adopted control share
provisions in violation of the Investment Company Act. The
appellate court’s ruling upheld Saba’s victory over these funds
that broke federal law by illegally stripping shareholders’ right
to vote all of their shares in an election.
***
About Saba Capital
Saba Capital Management, L.P. is a global alternative asset
management firm that seeks to deliver superior risk-adjusted
returns for a diverse group of clients. Founded in 2009 by Boaz
Weinstein, Saba is a pioneer of credit relative value strategies
and capital structure arbitrage. Saba is headquartered in New York
City. Learn more at www.sabacapital.com.
1 The 10 BlackRock closed-end funds include: the BlackRock
California Municipal Income Trust (NYSE: BFZ), BlackRock Capital
Allocation Term Trust (NYSE: BCAT), BlackRock ESG Capital
Allocation Term Trust (NYSE: ECAT), BlackRock Health Sciences Term
Trust (NYSE: BMEZ), BlackRock Innovation and Growth Term Trust
(NYSE: BIGZ), BlackRock MuniHoldings New York Quality Fund (NYSE:
MHN), BlackRock MuniYield New York Quality Fund (NYSE: MYN),
BlackRock MuniYield Pennsylvania Quality Fund (NYSE: MPA),
BlackRock New York Municipal Income Trust (NYSE: BNY) and BlackRock
Science and Technology Term Trust (NYSE: BSTZ).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240630658123/en/
Longacre Square Partners Charlotte Kiaie / Kate Sylvester,
646-386-0091 ckiaie@longacresquare.com /
ksylvester@longacresquare.com
BlackRock MuniHoldings N... (NYSE:MHN)
Historical Stock Chart
From Sep 2024 to Oct 2024
BlackRock MuniHoldings N... (NYSE:MHN)
Historical Stock Chart
From Oct 2023 to Oct 2024