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

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.

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