Glass Lewis recommended that shareholders of BlackRock ESG Capital Allocation Term Trust (NYSE: ECAT) vote for all nine board nominees proposed by the fund's current management, according to a statement from BlackRock Advisors LLC.

The proxy advisory firm issued its recommendation ahead of ECAT's annual meeting scheduled for June 9. Glass Lewis rejected a dissident slate of nominees challenging the current board.

In its recommendation, Glass Lewis noted that ECAT's discount sat near 2.8% as of May 15 and described the fund's discount and distribution rate as "functionally best-in-class." The firm stated that the board's focus on capital and discount management has "driven measurable, competitive results."

Glass Lewis also commented on the dissident investor Saba's reduced stake in the fund, noting that Saba "has since sold down nearly a third of its stake" and "again failed to gather any meaningful investor coalition."

According to BlackRock, ECAT has outperformed its peer group by 36% since 2023 based on Morningstar data as of April 30. The fund has also maintained the lowest average discount to net asset value among competitor funds over a one-year period, according to the same data source.

BlackRock cited the fund's implementation of discount management and share repurchase programs, along with increased distribution rates since inception, as factors contributing to performance.

The fund's proxy materials for the June 9 annual meeting are available through BlackRock's designated proxy website. Shareholders can vote using the white proxy card provided by BlackRock through online, telephone, or mail options.