Saba Launches Campaign to Improve the Boards of 10 Poorly Governed and Underperforming Closed-End Funds Managed by BlackRock
Intends to Hold BlackRock and Its Hand-Picked Board Members Accountable for Destroying Billions in Shareholder Value
Names Incumbent Board Members
Nominates Seven Board Candidates with Experience in Corporate Governance, Credit Markets, Financial Services and Other Areas Required to Help Close the Funds’ Large Discounts to NAV
Additionally, Saba filed a lawsuit today in the
“BlackRock holds itself up as a leader in corporate governance despite the fact that many of its funds, including the CEFs, entrench compromised trustees, hinder shareholders’ rights and put up roadblocks when attempts are made to narrow persistent discounts to Net Asset Value (‘NAV’). Last year, a leading independent proxy advisory firm chastised BlackRock for its ‘abusive’ governance. Saba also won a lawsuit against BlackRock that should have ended its illegal efforts to deprive shareholders of their right to vote all of their shares. Instead of following the Court’s order, BlackRock is pursuing a baseless appeal. Clearly, our work is not done.
BlackRock acts as if federal law does not apply to its CEFs by blatantly ignoring the Investment Company Act. Shareholders are repeatedly deprived of their lawful voting rights, while directors avoid accountability for their own governance and performance failures.
Under the Entrenchment Bylaw, any share not voted in a contested election is counted as a vote for BlackRock. Dear reader, your eyes do not deceive you – yes, that’s how BlackRock believes elections ought to be decided when their directors are challenged.
The case for immediate change at the BlackRock Funds is clear. This is why we have filed a lawsuit to protect shareholder rights and nominated slates of highly qualified and independent candidates for election to the BlackRock Funds’ Boards at the 2024 Annual Meetings. Our nominees have a plan to enact changes that will return the funds to their full NAV – just like we have successfully done in dozens of prior campaigns. We believe that executing on our plan will deliver a staggering
BlackRock must not stand in the way of shareholders recouping their financial losses. All BlackRock has to do is put aside its greed and self-interest and offer shareholders an exit at NAV, just as it offers daily for the trillions of dollars it holds in the same investments across BlackRock mutual funds and ETFs.”
The BlackRock Funds for which Saba has nominated Board candidates include: the
Saba’s slate:
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Athanassios Diplas possesses significant expertise in credit markets – including swaps, derivatives, risk management and trading – having served in senior leadership roles at Deutsche Bank (including Global Head of System Risk Management andChief Risk Officer ) andGoldman Sachs & Co. over the last decade.
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Ilya Gurevich is a retirement planner with more than 25 years of experience in the financial services industry. He has a deep understanding of the BlackRock Funds’ shareholder base and received a recommendation fromInstitutional Shareholder Services Inc. for election to the ECAT and BIGZ boards in 2023.
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Shavar Jeffries is the CEO of theKIPP Foundation and is a corporate governance expert with a 24-year career in law who has served on boards includingPzena Investment Management , theKIPP Foundation ,New Classrooms andDuke University .
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David Littlewood has more than two decades of experience in capital markets, asset management and securities trading, as well as valuable expertise in debt securities (credit product structuring and distribution) from his time serving as Global Head of Structured Credit Products at theRoyal Bank of Scotland .
- David Locala is a former M&A banker with more than 30 years of experience working in the financial services industry at Citigroup Global Markets, Deutsche Bank and Lazard, where he advised companies on M&A across the technology sector.
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Jennifer Raab is an executive of various private and nonprofit organizations, including as the CEO of the New York Stem Cell FoundationResearch Institute , the former Chairperson of theNew York City Landmarks Preservation Commission and the President Emerita ofHunter College .
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Alexander Vindman is a former member of the White House’sNational Security Council who has significant experience in high-ranking roles in political and military affairs. He is renowned for upholding sound governance principles through ethical leadership and accountability, including as Political-Military Affairs Officer forRussia for the Chairman of theJoint Chiefs of Staff .
About
IMPORTANT INFORMATION
The “Nominees” refer to (i) with respect to BIGZ, BCAT, ECAT, BMEZ, BSTZ and MPA,
Information about any direct or indirect interests by security holdings or otherwise of the Participants is contained in Exhibit 1 to the Form DFAN14A filed with respect to each of the BlackRock Funds by
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gmarose@longacresquare.com / ksylvester@longacresquare.com
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