US Court Rules That Nuveen and its Fund Trustees Violated Federal Law by Stripping Shareholders’ Voting Rights

NEW YORK--(BUSINESS WIRE)--Saba Capital Management, L.P. (collectively with its affiliates, “Saba”) today highlighted the outcome of the lawsuit it brought in the United States District Court for the Southern District of New York (the “Court”) against certain closed-end funds advised by Nuveen Fund Advisors, LLC and Nuveen Asset Management, LLC (collectively, “Nuveen”) and the following fund trustees: Jack B. Evans, William C. Hunter, Albin F. Moschner, John K. Nelson, Judith M. Stockdale, Carole E. Stone, Matthew Thornton, III, Terence J. Toth, Margaret L. Wolff and Robert L. Young.

On January 14, 2021, Saba sued Nuveen and the trustees after they stripped voting rights from shareholders of their closed-end fund. On February 17, 2022, the Court issued a summary judgement ruling in favor of Saba and invalidating Nuveen’s and the trustees’ actions. The Court ruling is a significant victory for closed-end fund shareholders, who are primarily retail shareholders, and should have far-reaching implications for other closed-end funds that have attempted to entrench trustees and investment advisors.

“The ability for shareholders to vote all of their shares is one of the most essential elements of the Investment Company Act. Without it, shareholders lack the ability to hold management teams and trustees accountable for excessive fees, poor performance and governance failures. The Investment Company Act is designed to ensure trustees and investment advisors, like Nuveen, do not use their power to place their own private interests ahead of shareholders’ interests.” said Michael D’Angelo, Partner and General Counsel of Saba.

About Saba Capital

Saba Capital Management, L.P. is a global alternative asset management firm that seeks to deliver superior risk-adjusted returns for a diverse group of institutional clients. The firm, which is a pioneer of credit relative value and capital structure trading, currently invests across four core strategies: Credit Relative Value, Tail Hedge, SPACs and Closed-End Funds. Founded in 2009 by Boaz Weinstein, Saba is privately held by its partnership and headquartered in New York City. Learn more at www.sabacapital.com.