Sources
Loading...
Additional media
Loading...
DeepNewz, mobile.
People-sourced. AI-powered. Unbiased News.
The closed-end fund industry, valued at $250 billion, is witnessing a significant debate as activist hedge funds, including Saba Capital, challenge moves by major asset managers like BlackRock. The controversy centers on a proposal by the NYSE and CBOE, allegedly influenced by BlackRock, to eliminate annual shareholder meetings for closed-end funds. Critics argue that this change could lead to wider discounts to net asset value (NAV) and diminish shareholder rights. Boaz Weinstein of Saba Capital highlights that in recent elections, directors supported by shareholders, such as Paul Kazarian, have won decisively, even without Saba's votes. BlackRock owns 7.6% of ICE, the owner of the NYSE. The proposal is seen as potentially destructive to shareholder value by increasing entrenchment and reducing accountability.
BlackRock and other asset managers have new allies in their fight with activist hedge funds over control of the $250 billion closed-end fund industry https://t.co/GzWb1JlTOa Weinstein is right. Without the ability to vote out CEF management teams, discounts to NAV will get wider
Who is the largest active investor in $ICE the owner of the NYSE? BlackRock owns 7.6%. Doing away with annual elections which has been a right of shareholders for a century would be so value destructive to every shareholder because of larger discounts and more entrenchment. I… https://t.co/2N3voUwsu6
In these elections shareholders are often heavily voting for our directors even excluding Saba’s voting. In a recent Neuberger Berman election, Paul Kazarian won by more than 2:1 even after excluding our votes. This NYSE proposal is disgusting and unambiguously bad for every… https://t.co/2N3voUwsu6