RiskMetrics Group Supports Western Investment Nominee for Board at TS&W/Claymore Tax-Advantaged Balanced Fund

NEW YORK, July 8 /PRNewswire/ -- Western Investment LLC today announced that RiskMetrics Group/ISS, a leading proxy advisory service that provides analyses and vote recommendations to major institutional investors worldwide, has recommended that TYW shareholders vote on the GOLD proxy for Western Investment's nominee, Neil Chelo, and for Western Investment's proposal to declassify the Board so that all directors face election annually instead of every three years.  Western Investment also encourages all preferred shareholders to vote for Western Investment's preferred share nominee, Robert A. Wood, on the GOLD proxy.

Specifically, RiskMetrics/ISS believes that "Western's nominee deserves an opportunity to focus more on adding value to the Fund through the authorization of an accretive program of share repurchases when the Fund's discount to NAV rises above a set value between 3%-5%."  

In reaching its conclusion, RiskMetrics/ISS pointed to TYW's "wide discount compared to its benchmark index" and noted that "[s]ince the Fund's inception, the Fund's share price has for the most part traded at a greater discount to its per share NAV than all leveraged equity closed-end funds and leveraged non-insured US national muni closed-end funds." (emphasis added).  Additionally, in discussing Western Investment's trustee nominee, Neil Chelo, RiskMetrics/ISS noted that Mr. Chelo's "diverse background and board experience" may provide a "fresh perspective to board deliberations."  

In supporting Western Investment's proposal to declassify the Board, RiskMetrics/ISS agreed with Western Investment, stating that "the only real motive for implementing a [classified board] is to make it more difficult to change control of the board."  Additionally, in reaching its conclusion, RiskMetrics/ISS highlighted the fact that "empirical evidence has suggested that [a classified board] is not in shareholders' best interests from a financial perspective."

Art Lipson, Managing Member of Western Investment, stated, "We are gratified for RiskMetrics' support and the fact that they realize the importance of accountability to shareholders in both of their recommendations.  This Board has chosen to maximize fees for Claymore at the expense of shareholder returns for far too long."

Mr. Lipson concluded, "This Board's failures are not limited to the Fund's poor performance and excessive discount.  To date, the Board has failed to address with shareholders the tax cuts relating to dividend income on which the Fund's investment strategy depends.  Frankly, we would like to know whether the Board has a plan with respect to this crucial issue.  We are also disturbed by the Board's failure to address the Fund's financial incentive to over-leverage.  Due to this Board's inability to manage the Fund's leverage, shareholders are left paying for additional risk without receiving the full and fair benefit of the reward.  We believe shareholders deserve a board that will take steps to address these important issues."

Western Investment sincerely appreciates the support it has received so far, and urges ALL TYW shareholders to support Western Investment's nominee on the GOLD proxy today.  Shareholders needing assistance in voting their shares should contact Western Investment's proxy solicitor, InvestorCom, Inc. at (877) 972-0090.

SOURCE Western Investment LLC