The three incumbent nominees to the board of BNY Mellon Municipal Bond Infrastructure Fund Inc. (DMB) will continue serving on the board, according to preliminary results from the fund’s annual stockholders meeting held Aug. 27.
The vote came after Saba Capital Management L.P., a 10.48 percent stockholder in the fund, nominated its own candidate for election to the board.
Saba’s solicitation centered on electing Paul Kazarian to a 10-member board as a minority director. In April, Saba nominated Kazarian to serve as a Class III director. The company’s SEC filing listed him as a partner and closed‑end fund portfolio manager at Saba Capital since 2013 and noted prior roles at RBC and Merrill Lynch, as well as trustee roles at other closed‑end funds.
“We believe that the board of directors of the fund needs fresh ideas and perspectives to address the fund’s trading discount,” according to Saba’s filing. “We have therefore nominated a highly qualified and independent nominee for election to the board, whose election, we believe, will send a strong message that the fund’s shareholders are not satisfied with the fund’s management and the fund’s discount to net asset value.”
Proxy advisory firms Glass Lewis and Egan-Jones had recommended that stockholders vote for all three incumbent nominees ahead of the meeting, and both firms had rejected Saba’s nominee, saying their review of the fund’s performance did not establish a compelling case for change.
During their meeting last week, stockholders also voted against a proposal to amend the fund’s charter to eliminate its classified board structure.
The proposal was included in the fund’s proxy statement following a non-binding proposal submitted by Saba last year.