Saba Capital Files a Complaint Against Nuveen Global High
January 19, 2021 at 04:29 pm EST
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On January 14, 2021, Saba Capital Management, L.P. and Saba Capital CEF Opportunities 1, Ltd. filed a complaint in the United States District Court for the Southern District of New York against Nuveen Global High Income Fund, and Terence J. Toth, Jack B. Evans, William C. Hunter, Albin F. Moschner, John K. Nelson, Judith M. Stockdale, Carole E. Stone, Margaret L. Wolff, Robert L. Young, and Matthew Thornton III in their capacity as trustees of the Trusts (Defendants), seeking injunctive relief on the basis that the defendants, through their adoption of bylaws purporting to strip voting rights from shares acquired in a control share acquisition, which is defined to include the acquisition of shares constituting as little as 10% of the voting power of the trusts (vote-stripping amendment), violated 15 U.S.C. § 80a-18(i) of the investment company act of 1940, pursuant to which all common shares shall be a voting stock and have equal voting rights with every other outstanding voting stock. As part of the complaint, Saba has requested, among other things, that the court find the vote-stripping amendment to be violative of the 40 act and that such vote-stripping amendment be rescinded and that the defendants, their agents and representatives, and all others acting in concert with them be permanently enjoined from applying the vote-stripping amendment.
Nuveen Global High Income Fund (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide a high level of current income. The Fund invests at least 80% of its managed assets in global income-producing securities including, but not limited to, corporate debt securities, United States and foreign government debt securities, mortgage- and asset-backed securities, preferred securities, secured and unsecured loans, convertible debt securities and contingent capital securities. The Fund's portfolio composition includes sovereign debt, banks, media, metals and mining, insurance, specialty retail, hotels, restaurants and leisure, capital markets, health care providers and services, chemicals, auto components, trading companies and distributors, software, beverages, wireless telecommunication services, electric utilities, commercial services and supplies and asset-backed securities. The Fund's manager is Nuveen Asset Management, LLC.