-

U.S. Court of Appeals for the Second Circuit Reaffirms Ruling That Certain Closed-End Funds, Including Funds Advised by BlackRock, Violated the Investment Company Act of 1940

Appellate Court Upholds Saba’s Victory Over 11 Closed-End Funds That Broke Federal Law

BlackRock, Royce Investment Partners, Tortoise Capital Advisors, Adams Funds and FS Investments Illegally Adopted Control Share Provisions at Their Closed-End Funds

NEW YORK--(BUSINESS WIRE)--Saba Capital Management, L.P. (together with certain of its affiliates, “Saba” or “we”) today commented on the outcome of the appeal brought in the United States Court of Appeals for the Second Circuit (the “Appellate Court”) by the BlackRock ESG Capital Allocation Term Trust (NYSE: ECAT), BlackRock Municipal Income Fund (NYSE: MUI), Royce Global Value Trust (NYSE: RGT), Tortoise Midstream Energy Fund (NYSE: NTG), Tortoise Energy Independence Fund (NYSE: NDP), Tortoise Pipeline & Energy Fund (NYSE: TTP), Tortoise Energy Infrastructure Corp. (NYSE: TYG), Ecofin Sustainable and Social Impact Term Fund (NYSE: TEAF), Adams Diversified Equity Fund (NYSE: ADX), Adams Natural Resources Fund (NYSE: PEO) and FS Credit Opportunities Corp. (NYSE: FSCO) (collectively, the “Funds”). Royce Global Value Trust is managed by Royce Investment Partners, an affiliate of Franklin Templeton.

The Appellate Court agreed with the December 2023 ruling from the U.S. District Court for the Southern District of New York that the Funds adopted control share provisions in violation of the Investment Company Act.

Michael D’Angelo, Partner and General Counsel of Saba, said:

“In concluding that BlackRock and other entrenched managers were found to have violated federal law, today’s ruling will finally put an end to these Funds’ practice of illegally stripping shareholders’ right to vote all of their shares in an election. This decisive victory will uphold the Investment Company Act and protect closed-end fund shareholders everywhere, who have suffered billions of dollars in losses. We are pleased to have fought and won this lawsuit on behalf of all our fellow shareholders across these 11 Funds.”

Saba has previously brought and won similar lawsuits against Eaton Vance and Nuveen regarding illegal vote stripping in recent years.

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 clients. Founded in 2009 by Boaz Weinstein, Saba is a pioneer of credit relative value strategies and capital structure arbitrage. Saba is headquartered in New York City. Learn more at www.sabacapital.com.

Contacts

Longacre Square Partners
Charlotte Kiaie / Kate Sylvester, 646-386-0091
ckiaie@longacresquare.com / ksylvester@longacresquare.com

Industry:

Saba Capital Management, L.P.

NYSE:ECAT
Release Versions
English

Contacts

Longacre Square Partners
Charlotte Kiaie / Kate Sylvester, 646-386-0091
ckiaie@longacresquare.com / ksylvester@longacresquare.com

More News From Saba Capital Management, L.P.

Saba Capital and Cox Capital Partners Announce Commencement of Tender Offer for Shares of Blue Owl Capital Corporation II

NEW YORK--(BUSINESS WIRE)--Saba Capital Management, L.P. (together with certain of its affiliates, “Saba”) and Cox Capital Partners (“Cox”) (together with Saba, the “Purchasers”) today announced the commencement of a tender offer to purchase outstanding shares (“Shares”) of Blue Owl Capital Corporation II (“OBDC II”), a non-traded business development company with limited liquidity. The OBDC II offer (the “Tender Offer”) will commence on March 6, 2026, and will expire at 5:00 p.m. Eastern Time...

Saba Capital and Cox Capital Partners Announce Commencement of Tender Offer for Shares of Starwood Real Estate Income Trust

NEW YORK--(BUSINESS WIRE)--Saba Capital Management, L.P. (together with certain of its affiliates, “Saba”) and Cox Capital Partners (“Cox”) (together with Saba, the “Purchasers”) today announced the commencement of a tender offer to purchase outstanding shares (“Shares”) of Starwood Real Estate Income Trust (“SREIT”), a non-traded real estate fund with limited liquidity. The SREIT offer (the “Tender Offer”) will commence on March 5, 2026, and expire at 5:00 p.m. Eastern Time on April 25, 2026,...

Saba Capital Launches UK Investment Trust ETF Designed for Investors to Profit from Narrowing Discounts

LONDON--(BUSINESS WIRE)--Saba Capital Management, L.P. (together with certain of its affiliates, “Saba” or “we”) today announced the launch of the Saba Capital Investment Trusts UCITS ETF (“UKIT” or the “ETF”), an actively managed ETF that seeks to achieve capital appreciation by investing in investment trusts trading at attractive discounts to net asset value (“NAV”). UKIT invests in trusts with underlying holdings in public and private equities, bonds and alternative asset classes such as rea...
Back to Newsroom