ISS backs Boaz Weinstein’s nominees at four BlackRock funds
What previous support or endorsements have other advisory firms like Glass Lewis given to BlackRock regarding these issues?
Glass Lewis, another leading proxy advisory firm, has previously supported BlackRock in regard to the issues raised by Saba Capital. While the exact details of Glass Lewis' endorsements are not provided in the given context, it is mentioned that BlackRock pointed to prior full endorsements from Glass Lewis in response to ISS' latest findings. This suggests that Glass Lewis has backed BlackRock's position and supported the incumbent directors in the past.
What has been the performance of the funds that Saba Capital is targeting, according to their claims?
According to Saba Capital's claims, the funds they are targeting have been trading at a discount to their net asset value (NAV). Specifically, the funds have traded at discounts ranging from 15.12% to 17.84%, according to Morningstar data. Saba argues that these discounts are among the largest in the closed-end fund market. Additionally, the funds have experienced significant underperformance, with Saba's founder, Boaz Weinstein, stating that the funds' adjusted expense ratios range from 2.75% to 3.03% and have lagged their benchmark index for the past three, five, and ten years for the periods ending October 31.
What specific reasons did ISS provide for recommending Saba Capital's board nominees at the BlackRock Innovation and Growth Term Trust and BlackRock ESG Capital Allocation Term Trust?
ISS provided several reasons for recommending Saba Capital's board nominees at the BlackRock Innovation and Growth Term Trust (BIGZ) and BlackRock ESG Capital Allocation Term Trust (ECAT).
For BIGZ, ISS noted severe underperformance and shareholder disenfranchisement as key reasons for recommending a board refreshment. They specifically endorsed Saba nominees Ilya Gurevich, Shavar Jeffries, David Locala, and Athanassios Diplas.
For ECAT, ISS again cited underperformance and shareholder disenfranchisement as reasons for recommending change. They advised shareholders to support Saba nominees Ilya Gurevich and Athanassios Diplas.
Additionally, ISS pointed to Saba's management of its Capital Income and Opportunities Fund as evidence that it could narrow undervaluation, which they deemed less concerning than BlackRock had suggested.
Overall, ISS' support for Saba's nominees at BIGZ and ECAT indicates their belief that a change in board representation could address the funds' performance issues and better serve shareholders' interests.