BlackRock Credit Allocation Income Trust · NYSE:BTZ
BlackRock Credit Allocation Income Trust — Proxy Contest (June 2019)
12 slides from BlackRock Credit Allocation Income Trust's proxy contest presentation, Jun 13, 2019
Slide 1: Blackrock Credit Allocation Income Trust (BTZ)
Blackrock Credit Allocation Income Trust (BTZ) A PRESENTATION TO INSTITUTIONAL SHAREHOLDER SERVICES INC. Junel3, 2019 Saba Capital
Slide 2: Introduction
Introduction The BlackRock Credit Allocation Trust (“BTZ” or the “Fund” is a $1.3bIn taxable fixed income closed-end fund. In Saba’s opinion, the trustees of the Fund have failed shareholders by putting the will and direction of their investment advisor ahead of their fiduciary duty to shareholders.
Slide 3: Independent Trustees
Independent" Trustees ‘The current Trustees who are compensated handsomely for serving on what is essentially one board of trustees for 88 diferent entities, attend less than 10 concurrent board meetings a year for all of those entities and we believe cannot possibly provide individualized attention
Slide 4: Trustees unilaterally adopted problematic bylaw amendments
Saba| Capital tober 2% ‘The trustees of BTZ have undateraly adopted to ofthe most problematic bylaws amendments which we believe have negatively impacted shareholder rights (on October 282016, approximately one month after Saba fied their st 130 in @ Blackrock closed-end fun, the funds Board along ‘
Slide 5: Comparison of BTZ to BlackRock and ISS guidelines
Comparison of BTZ fo BlackRo< k and ISS ¢ ‘harbors by Peng managers eeu on Rake aA Tass amas PSST Goan ‘aia Comma Be aatiat i aes ‘soot mapray votes ca! sansa cor ctor aaa eased actoce anid TTT catna nw Sacer abe recuestn ong ‘ye sharookes cee fia at "Wee scat ain cua esoroirngh pepe sf <u aa ey ote
Slide 6: Trustees Attempt to Exclude Saba's Nominees
Tustees Attempt to Exclude Saba's Nominees ‘The current trustees have attempted to misuse the Fund's bylaws to preclude shareholders from voting on qualied candidates and are Infinging on shareholders’ core franchise right to nomnate and elect board members of tek choosing. (On March 30, 019 Saba pr
Slide 7: Sustained Discount to NAV
Sustained Discount to NAV BBTZ has unfortunately suffered one ofthe largest sustained discounts in the closed-end fund industy. BTZ has never ‘raged at a premium in i's 12 year history, averaging a discount to NAV of 11%. The Board has shown a complete inabilty to manage ts discount, as investors ha
Slide 8: Sustained Discount to NAV, pt. 2
Sustained Discount to NAV, pt. 2 ‘Of the 145 taxable bond closed-end funds, only 13 have failed to achieve a premium to NAV in the last 10 years, BBTZ atts best has never traded for less than a 5.6% discount to NAV, showing that even in the most bulish markets, ‘there is no demand for this closed-en
Slide 9: Saba Nominees
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Slide 10: Saba Nominees
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Slide 11: Actions taken by BTZ trustees that warrant being replaced
Saba| Capita Actions taken by BTZ nominees that warrant being replaced 1.) Utilize the funds bylaws to preclude shareholders from voting on qualified candidates 2.) Unilateral by-law amendment to classify Boards 3.) Unilateral by-law amendment to implement supermajority vote requirement 4.) Failure
Slide 12: Disclaimer
Capital Disclaimer
BlackRock Credit Allocation Income Trust — Proxy Contest (June 2019) on 6ix