BlackRock Credit Allocation Income Trust · NYSE:BTZ
BlackRock Credit Allocation Income Trust — Proxy Contest (June 2019)
20 slides from BlackRock Credit Allocation Income Trust's proxy contest presentation, Jun 19, 2019
Slide 1: BlackRock Credit Allocation Income Trust (BTZ) June 2019
BlackRock Credit Allocation Income Trust (BTZ) June 2019
Slide 2: Executive Summary
Executive Summary The Fund’s current Board, including the Board Nominees, is a diverse group of women and men – under their experienced and independent stewardship, the Fund has enjoyed consistently strong performance Outperformed comparable closed-end funds over 1, 3, 5 and 10 year periods1 Outperf
Slide 3: BlackRock Credit Allocation Income Trust (BTZ) performance summary
BlackRock Credit Allocation Income Trust (BTZ) Source: Lipper as of 5/31/2019. Comparable closed-end funds = Lipper Corporate BBB-Rated Debt Funds (Leveraged). Lipper defines this peer group as funds that invest primarily in corporate and government debt issues rated in the top four grades. These fu
Slide 4: Board Recommendation for Proposal
Board Recommendation for Proposal 1 The Board unanimously recommends that shareholders vote “FOR” the Board Nominees Under the Board’s independent, diverse and experienced stewardship, the Fund has benefited from strong performance relative to its Lipper peer group and publicly disclosed benchmark T
Slide 5: Board Recommendation for Proposal (continued)
Board Recommendation for Proposal 1 (continued) In contrast, Saba is a short-term shareholder that has a history of withdrawing its nominations once a closed-end fund has succumbed to its demand for a liquidity event such as a significant tender offer – clearly evidencing a lack of interest in fund
Slide 6: Discounts are common in the closed-end fund market
Discounts are common in the closed-end fund market While the Fund’s discount is a constant area of focus for the Board, we believe it is not the most important metric to long-term shareholders in evaluating a closed-end fund The primary metric in evaluating a closed-end fund is performance The Fund
Slide 7: Saba is a short term shareholder seeking its own agenda
Saba is a short term shareholder seeking its own agenda Saba has a history of short termism, attacking funds for its own profit at the expense of long term shareholders It is typical for Saba to extract a concession in which the fund being attacked agrees to a liquidity event in exchange for Saba wi
Slide 8: Saba's attempted slate is inexperienced
Saba’s attempted slate is inexperienced and the same individuals have been simultaneously named as nominees in past and ongoing closed-end fund proxy contests Saba is seeking to elect inexperienced individuals whom the Board believes intend to serve Saba’s purposes rather than the best interest of l
Slide 9: In contrast, the Fund's 2019 Board Nominees
… in contrast, the Fund’s 2019 Board Nominees Experience Diversity Independence Acting for shareholders Thinking for the long-term
Slide 10: Saba failed to comply with the Fund's bylaws and its nominations are invalid
Saba failed to comply with the Fund’s bylaws and it’s nominations are invalid The Fund’s bylaws set forth procedures for nominating trustees and expressly allow the Board to request further information about a candidate The Fund’s bylaws are clear – their purpose is to establish whether a candidate
Slide 11: Board Recommendation on Proposal
Board Recommendation on Proposal 2 The Board unanimously recommends that shareholders vote “AGAINST” the Hedge Fund Proposal (as described in the Fund’s proxy statement) Considerations with respect to classified boards for closed-end funds differ from those for traditional operating companies. Close
Slide 12: Appendix A
Appendix A Fund v. Comparable Closed-End Funds (Market Price) Fund v. Comparable Closed-End Funds (Net Asset Value) Fund v. Shareholder Report Benchmark (Net Asset Value)
Slide 13: Higher yield and market price outperformance vs comparable funds
The Fund has paid a higher yield and its Market Price has outperformed comparable closed-end funds over the 1, 3, 5 and 10 year periods1 Yield (%) and Annualized Return (%) on Market Price v. Comparable Closed-End Funds1 Source: Lipper as of 5/31/2019. Comparable closed-end funds = Lipper Corporate
Slide 14: Higher yield and NAV outperformance vs comparable funds
The Fund has paid a higher yield and its Net Asset Value (“NAV”) has outperformed comparable closed-end funds over the 1, 3, 5 and 10 year periods1 Yield (%) and Annualized Return (%) on NAV v. Comparable Closed- End Funds1 Source: Lipper as of 5/31/2019. Comparable closed-end funds = Lipper Corpora
Slide 15: Higher yield and NAV outperformance vs shareholder report benchmark
The Fund has paid a higher yield and its Net Asset Value (“NAV”) has outperformed its shareholder report benchmark over the 3, 5 and 10 year periods1 Yield (%) and Annualized NAV Return (%) v. Shareholder Report Benchmark1 Source: Lipper as of 5/31/2019. The shareholder report benchmark is comprised
Slide 16: Appendix B Biographies of Board Nominees and Other Board Members
Appendix B Biographies of Board Nominees and Other Board Members
Slide 17: Board Nominees
Board Nominees Richard E. Cavanagh Mr. Cavanagh served for over a decade as President and Chief Executive Officer of The Conference Board, Inc., a global business research organization. He is able to provide the Board with expertise about business and economic trends and governance practices. Mr. Ca
Slide 18: Michael J. Castellano
Michael J. Castellano Mr. Castellano has served as Chief Financial Officer of Lazard Ltd. and as a Managing Director and Chief Financial Officer of Lazard Group. Prior to joining Lazard, Mr. Castellano held various senior management positions at Merrill Lynch & Co., including Senior Vice President—C
Slide 19: Appendix C BlackRock's Global Credit Platform
Appendix C BlackRock’s Global Credit Platform
Slide 20: BlackRock's Global Credit Platform
BlackRock’s Global Credit Platform As of March 31, 2019 *(Years in Industry, Years at BlackRock) Portfolio Managers Jeff Cucunato (24, 24)* Stephan Bassas (22, 18)* Mitchell Garfin (21, 21)* BlackRock Credit Allocation Income Trust (BTZ) Product Strategy 9 investment professionals Risk & Quantitativ
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