Saba Capital Launches Definitive Proxy Fight at BNY Mellon Municipal Bond Fund, Nominates Paul Kazarian to Board
DMB is trading near its 52-week low of $9.85 (11% above the low).
Summary
Saba Capital, owning 8.5% of BNY Mellon Municipal Bond Infrastructure Fund, has launched a definitive proxy fight to elect Paul Kazarian to the board and push for board declassification, aiming to close the fund's persistent discount to NAV.
Key Events · Executive and Board Changes · DMB
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Saba Capital Launches Proxy Contest
Saba Capital, holding 1,565,216 shares (8.5% of outstanding), filed a definitive proxy statement to elect its nominee, Paul Kazarian, to the board at the August 27, 2026 annual meeting.
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Nominee Paul Kazarian's Background
Kazarian, 42, is a Partner and Closed-End Fund Portfolio Manager at Saba Capital, with board experience at ASA Gold and Precious Metals and other closed-end funds. He would be an independent director if elected.
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Persistent Discount to NAV
The fund's discount to net asset value was -6.06% as of July 16, 2026, with a three-year average of -10.23%, which Saba argues requires new board oversight to address.
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Board Declassification Proposal
Saba supports the fund's proposal to declassify the board, requiring a 75% supermajority vote. Shareholders approved a similar non-binding proposal in 2025.
Analysis · DMB · Unknown
Activist investor Saba Capital, holding an 8.5% stake, has filed its definitive proxy statement to elect Paul Kazarian to the board of the BNY Mellon Municipal Bond Infrastructure Fund. The fund trades at a persistent discount to net asset value (currently -6.06%, with a three-year average of -10.23%), and Saba argues the board needs fresh perspectives to address this. The proxy contest also pushes for board declassification, which shareholders approved last year but requires a 75% supermajority vote to amend the charter. This is a high-stakes governance battle at a $202 million closed-end fund, with the annual meeting set for August 27, 2026.
At the time of this filing, DMB was trading at $10.98 on NYSE in the Unknown sector, with a market capitalization of approximately $202.5M. The 52-week trading range was $9.85 to $11.28. This filing was assessed with neutral market sentiment and an importance score of 8 out of 10.