ISS recommends BlackRock ESG fund shareholders vote for incumbents

Published 18/06/2025, 22:50
ISS recommends BlackRock ESG fund shareholders vote for incumbents

NEW YORK - Institutional Shareholder Services (ISS) has recommended that shareholders of BlackRock ESG Allocation Term Trust (NYSE: ECAT), a $1.57 billion fund currently yielding an impressive 22.58%, vote for nine of ten incumbent board nominees and against a proposal to terminate BlackRock as investment adviser, according to a statement from BlackRock Advisors LLC.

ISS, a leading independent proxy advisory firm, rejected a dissident shareholder’s full slate of eight nominees ahead of the Fund’s annual meeting scheduled for June 26. This recommendation follows Glass Lewis, another proxy advisory firm, which previously endorsed all incumbent nominees and opposed the termination proposal. According to InvestingPro, the fund has demonstrated strong performance with a 7.58% return year-to-date.

In its recommendation, ISS noted that "the dissident has not presented a compelling case for change" and acknowledged that "the board’s actions have had a positive impact on the discount since the 2024 AGM." ISS also recognized that "ECAT outperforms both peer groups from inception to present." InvestingPro data supports this strong performance, showing the fund maintains a "GREAT" financial health score and has consistently raised its dividend for four consecutive years.

BlackRock is urging shareholders to vote on the white proxy card for all board nominees and against the termination proposal. The company advises shareholders who may have already submitted a gold proxy card that they can change their vote by using the website or toll-free number provided on the white proxy card, or by completing and returning a new white proxy card.

The fund’s annual meeting of shareholders is scheduled for June 26, 2025. The information is based on a press release statement from BlackRock Advisors LLC.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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