Page 8 of 9 – SEC Filing
SUPPORTING STATEMENT
The Closed-End Fund Center
(www.CEFA.com) classifies the Fund in a peer group of twenty-five “Loan-Participation” closed-end funds. Within
this peer group, the Fund’s discount to NAV ranks the last (i.e., the worst) out of the twenty-five closed-end funds.
The Fund has become too large
since BlackRock merged it with other funds in 2013. BlackRock has taken the Fund that had averaged a 1.5% discount to NAV for fifteen
years before the merger and left shareholders with a fund that has averaged 10.9% discount to NAV since the merger. It is time
for shareholders to see their shares trade at their actual value, something which would currently lead to an approximate 10% gain
for shareholders.
If the Fund were to trade back
to NAV, BlackRock stands ready with a “Shelf Offering” to issue up to an additional 16.125 million shares and dilute
shareholders, likely returning the Fund to a significant discount.
In comparison, BlackRock’s
peer investment manager PIMCO manages twenty closed-end funds which average an approximate 10% PREMIUM to NAV and none with
a discount greater than 2.4%. With BlackRock’s 5.7 trillion in AUM, why is BlackRock allowing shareholders to suffer
for a less then market valuation for their investment?
Recently, there have been dozens
of examples where boards have taken corporate action in the closed-end fund space. Shareholders should have the opportunity to
realize a price for their shares close to NAV. Toward that end; the Board should consider authorizing a self-tender offer for 30%
of the shares outstanding of the Fund at or close to NAV.
Please vote FOR the Proposal
and tell the Board that you want it to take action to collapse the Fund’s discount and increase shareholder value.
END OF PROPOSAL
The Saba Group began
purchasing the shares as early as 2013. As is required by Rule 14a-8 of the Securities Exchange Act of 1934, attached is a letter
from National Financial Services verifying that the Saba Fund referenced therein continuously and beneficially owned shares having
a market value of $2,000 or more for at least one year prior to the date of the
