Leading Independent Proxy Advisory Firms ISS & Glass Lewis Recommend Stockholders Vote “FOR” Western Asset High Income Fu...
October 14 2019 - 4:52PM
Business Wire
Western Asset High Income Fund II Urges
Stockholders to Protect the Value of Their Investment by Voting
“FOR” the Fund’s Director Nominees on the WHITE Proxy
Card
Western Asset High Income Fund II Inc. (NYSE:
HIX) (“the Fund”) today announced that two of the leading
independent proxy advisory firms, Institutional Shareholder
Services (“ISS”) and Glass Lewis & Co. (“Glass Lewis”),
recommend that stockholders vote “FOR” the Fund’s
highly-qualified and experienced director nominees – Carol L.
Colman, CFA, William R. Hutchinson and Jane E. Trust, CFA – on the
WHITE proxy card in connection with the Annual Meeting of
Stockholders scheduled for 9:30 a.m. Eastern Time on October 25,
2019.
In their reports dated October 12, 2019, and October 7, 2019,
respectively, ISS and Glass Lewis noted1:
- “… the fund's discount has narrowed from 18 percent in December
2018, (the point over the last five years at which its discount was
greatest), to 8 percent in October 2019. This suggests that
management's efforts focused on discount reduction measures appear
to be working and could be the result of the fund's ongoing fee
reduction management, share repurchases, and increased
distributions to shareholders.” ISS report dated October 12,
2019
- Saba Capital’s activist campaign “is very likely to advance
short-term initiatives aimed at creating a brief uplift in trading
prices, after which we expect Saba would undertake the common tack
of quickly liquidating its position and reallocating any gains to
new opportunities in the satisfaction of its own investment
objectives.” Glass Lewis report dated October 7, 2019
- “… because Saba has not offered any meaningfully detailed
alternatives, ordinary investors are largely left to assume Messrs.
Basile, Flanagan and Gabriel would advance many of the same
outcomes the Dissident is well-known for promoting (e.g.
large-scale share buybacks, open-ending the fund)… we do not
consider these outcomes are particularly well-supported by Saba's
core quantitative arguments, nor do we consider Messrs. Basile,
Flanagan and Gabriel have experience relevant to the pursuit of
these outcomes.” Glass Lewis report dated October 7, 2019
- “In light of these factors, the dissident has not demonstrated
that board level change is warranted at this time. As such, votes
for all incumbent directors on the management (WHITE) card are
warranted.” ISS report dated October 12, 2019
“ISS’s and Glass Lewis’s recommendations underscore our belief
that we have the right Board to continue to oversee the successful
execution of our strategy that is delivering strong returns,” said
Jane E. Trust, Chairman, President and Chief Executive Officer of
Western Asset High Income Fund II. “We are pleased that the proxy
advisory firms recognize that the Fund’s Board is well positioned
to continue serving the best interests of all stockholders.”
Ms. Trust continued, “Saba Capital’s candidates lack critical
diversity and expertise, and would not help our Board continue its
track record of achieving our investment objectives. We believe
that the primary goal of Saba Capital’s proxy contest is to
pressure our Board to implement changes that would be detrimental
to our long-term stockholders. We urge our stockholders to protect
the value of their investment by following the proxy advisory
firms’ recommendations and supporting the Board that has delivered
substantial stockholder value.”
Western Asset High Income Fund II’s Board has a proven track
record of working with the Fund’s investment advisor to achieve its
objectives, including:
- Driving total stockholder returns2 that have outpaced Lipper
peer group3 averages over 1- and 3-year periods and our key
benchmark4 averages over the 1-, 3- and 10-year periods;
- Enhancing the portfolio composition, resulting in 1-year
returns2 of 18.88%, more than double the Lipper peer group3 average
of 8.97% and key benchmark4 average of 8.26%;
- Outperforming peers with 5-year average annualized yield of
8.72%, above the Lipper peer group3 average of 8.03%;
- Increasing its distribution payout for three straight quarters;
and
- Raising the dividend, increasing its distribution yield to
8.60%5.
The Board unanimously urges stockholders to follow the
recommendations from ISS and Glass Lewis by voting “FOR”
Carol L. Colman, CFA, William R. Hutchinson and Jane E. Trust, CFA
and “AGAINST” Saba Capital’s Board De-Classification Proposal on
the WHITE proxy card today.
Your Vote Is Important, No
Matter How Many or How Few Shares You Own
You can vote by Internet,
telephone or by signing and dating the WHITE proxy card and mailing it in the
envelope provided.
If you have any questions about
how to vote your shares, or need additional assistance, please
contact:
Innisfree
Stockholders Call Toll-Free:
(877) 750-8197
Banks and Brokers Call: (212)
750-5833
REMEMBER:
We urge you NOT to vote using any GOLD proxy card sent to you
by Saba Capital, as doing so will revoke your vote on the
WHITE proxy card.
About Western Asset High Income Fund II
Western Asset High Income Fund II Inc., a diversified,
closed-end management investment company, is managed by Legg Mason
Partners Fund Advisor, LLC, a wholly-owned subsidiary of Legg
Mason, Inc., and is sub-advised by Western Asset Management
Company, LLC, an affiliate of the investment manager.
For more information about the Fund, please call 1-888-777-0102
or consult the Fund’s web site at www.lmcef.com. Hard copies of the
Fund’s complete audited financial statements are available free of
charge upon request.
Forward Looking Statement
Past performance is no guarantee of future results. The
information provided is not intended to be a forecast of future
events, a guarantee of future results or investment advice.
All investments are subject to risk including the possible loss
of principal. All benchmark performance reflects no deduction for
fees, expenses or taxes. Please note that an investor cannot invest
directly in a benchmark.
1 Permission to use quotations neither sought not obtained.
2 The Fund’s performance is based on the price of the Fund’s
securities, which are listed for trading on the NYSE.
3 The Fund’s Lipper peer group refers to the peer group of
high-yield, levered closed-end funds as selected by Lipper, an
independent nationally recognized provider of investment company
information.
4 The benchmark is based on the following blend of indexes: 80%
of the benchmark consists of the Bloomberg Barclays U.S. Corporate
High Yield —2%Issuer Cap Index; and 20% of the benchmark consists
of the JPMorgan Emerging Markets Bond Index Global (EMBI Global).
Please note that an investor cannot invest directly in an index.
Additional information about the indexes can be found in the Fund’s
annual shareholder report. Additional information about the Fund’s
performance and about the history of the Board and the Fund’s
management generating strong investor returns is included in the
Fund’s Proxy Statement and in the Fund’s annual shareholder
report.
5 Yield based on market price as of June 30, 2019.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191014005686/en/
Western Asset High Income Fund II 888-777-0102 Or Joele Frank,
Wilkinson Brimmer Katcher Andy Brimmer / Dan Katcher / Mahmoud
Siddig 212-355-4449
Western Asset High Incom... (NYSE:HIX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Western Asset High Incom... (NYSE:HIX)
Historical Stock Chart
From Jul 2023 to Jul 2024