ISS Supports Saba Capital’s Nominee at Neuberger Berman Municipal Fund and Neuberger Berman Next Generation Connectivity Fund

Business Wire
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In This Article:

Recommends NBH and NBXG Shareholders Vote FOR the Election of Saba Nominee Paul Kazarian on the GOLD Proxy Card

Concludes Saba "Has Presented a Compelling Case for Change" at Both Funds

NEW YORK, August 05, 2024--(BUSINESS WIRE)--Saba Capital Management, L.P. (together with certain of its affiliates, "Saba" or "we"), the largest shareholder of the Neuberger Berman Municipal Fund (NYSE: NBH) and the Neuberger Berman Next Generation Connectivity Fund (NYSE: NBXG) (collectively, the "Funds"), today announced that Institutional Shareholder Services Inc. ("ISS") has recommended NBH and NBXG shareholders elect Saba’s director candidate, Paul Kazarian, to the Funds’ Boards of Directors (the "Boards") at the 2024 Joint Annual Meeting of Shareholders.

In its full report on NBH, ISS affirmed Saba’s case for boardroom change, citing deficiencies in NBH’s governance, performance and fees:1

  • "… NBH has experienced significant deterioration in [its NAV discount], and now trades at a wider discount than the peers it once consistently outperformed."

  • "…NBH delivered negative returns and underperformed both peers and its benchmark over all measurement periods prior to the public entrance of the dissident."

  • "Despite delivering below-market performance, NBH has an above-market expense ratio."

  • "[T]he corporate governance structure provides shareholders with little reason to have faith in the board."

  • "Dissident nominee Paul Kazarian is independent, has meaningful CEF experience, and would impart the perspective of a large shareholder, all of which would be additive at this juncture. As such, a vote FOR dissident nominee Paul Kazarian on the dissident GOLD card is warranted."

In its full report on NBXG, ISS also noted concerns with NBXG’s performance and its Board’s decision-making:2

  • "There are clear concerns in nearly all areas of performance."

  • "NBXG has generally traded at a NAV discount in excess of 15 percent, and has fared worse than peers over all measurement periods."

  • "The board's willingness to brazenly ignore the will of shareholders is just further evidence in support of a case for change."

  • "[N]ot only is the board classified, but the fund has a majority vote standard for both uncontested and contested elections."

  • "[The] fund was not only willing to disenfranchise shareholders by actively opting into the [Maryland Control Share Acquisition Act], but is now apparently unwilling to remove ambiguity about the applicability of the provision."

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