Fixed Income

BTZ

BlackRock Credit Allocation Income Trust

  • NAV as of Nov 06, 2024 $11.42
    52 WK: 10.79 - 11.77
  • NAV Total Return as of: Sep 30, 2024 YTD: 8.42%
  • Distribution Rate as of Nov 06, 2024 9.31%
  • Market Price as of Nov 06, 2024 $10.81
  • Market Price Total Return as of: Sep 30, 2024 YTD: 17.20%
  • Premium Discount as of Nov 06, 2024 -5.34%

Overview

Investment Approach

BlackRock Credit Allocation Income Trust’s (BTZ) (the 'Trust') investment objective is to provide current income, current gains and capital appreciation. The Trust seeks to achieve its investment objective by investing, under normal market conditions, at least 80% of its assets in credit-related securities, including, but not limited to, investment grade corporate bonds, high yield bonds (commonly referred to as 'junk' bonds), bank loans, preferred securities or convertible bonds or derivatives with economic characteristics similar to these credit-related securities. The Trust may invest directly in such securities or synthetically through the use of derivatives.

No assurance can be given that the Trust’s investment objective will be achieved.

A BOND SOLUTION BUILT FOR INCOME

A flexible approach designed to capture a diversified set of investment credit opportunities

UNCOVERING CREDIT OPPORTUNITIES

Seeking attractive credit opportunities while leveraging BlackRock’s deep insight


PURSUING CONSISTENT, HIGH INCOME

The fund targets a high and consistent level of income to maximize capital appreciation


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Performance

Performance

Distributions

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Ex-Date Payable Date Record Date Total Distribution Income ST Cap Gains Return of Capital LT Cap Gains
Record Date Ex-Date Payable Date Total Distribution Income ST Cap Gains LT Cap Gains Return of Capital

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Year Total Distribution Income ST Cap Gains LT Cap Gains

Past distributions are not indicative of future distributions.


If a Fund estimates that it has distributed more than its income and net realized capital gains in the current fiscal year; a portion of its distribution may be a return of capital. A return of capital may occur, for example, when some or all of a shareholder's investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect a Fund's investment performance and should not be confused with 'yield' or 'income'. When distributions exceed total return performance, the difference will reduce the Fund's net asset value per share. Although the character of income will not be determined until the end of the fund’s fiscal year, please refer to the 'Closed-End Fund Resources' section of the BlackRock website for Section 19 notices that provide estimated amounts and sources of the fund's distributions, which should not be not be relied upon for tax reporting purposes. A Form 1099-DIV for the calendar year will be sent to shareholders to illustrate how the Fund’s distributions should be reported for federal income tax purposes.

  1y 3y 5y 10y
NAV Total Return (%) 19.21 -0.08 3.53 5.01
Market Price Total Return (%) 28.14 -0.73 4.60 6.04
  YTD 1m 3m 1y 3y 5y 10y
NAV Total Return (%) 8.42 1.87 - 19.21 -0.24 18.94 63.03
Market Price Total Return (%) 17.20 3.22 - 28.14 -2.17 25.21 79.75
  2019 2020 2021 2022 2023
NAV Total Return (%) 21.90 12.78 2.80 -19.55 14.34
Market Price Total Return (%) 33.49 13.07 9.36 -27.10 12.70

Performance is shown after deduction of ongoing charges. Any entry and exit charges are excluded from the calculation.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted.


Returns are shown net of advisory fees paid by the fund and net of the fund’s operating fees and expenses. Investors who purchase shares of the fund through an investment adviser or other financial professional may separately pay a fee to that service provider. Past performance is not indicative of future results.

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted, and numbers may reflect small variances due to rounding. Standardized performance and performance data current to the most recent month end may be found in the Performance section.

Key Facts

Key Facts

Net Assets
as of Nov 06, 2024
$1,065,594,732
Share Class launch date
Dec 27, 2006
Asset Class
Fixed Income
Distribution Frequency
Monthly
Lipper Classification
Corp Debt BBB Leveraged
CUSIP
092508100
Managed Assets
as of Nov 06, 2024
$1,627,390,975.06
Exchange
New York Stock Exchange Inc.
Shares Outstanding
as of Nov 06, 2024
93,324,457
Morningstar Category
Multisector Bond
Premium Discount
as of Nov 06, 2024
-5.34%
Number of Holdings
as of Sep 30, 2024
1,735

Portfolio Characteristics

Portfolio Characteristics

Distribution Rate
as of Nov 06, 2024
9.31%
Average Coupon
as of Sep 30, 2024
7.27%
Effective Duration
as of Sep 30, 2024
5.86 yrs
WAL to Maturity
as of Sep 30, 2024
21.66 yrs
% Leveraged
as of Sep 30, 2024
34.90%
Yield to Maturity
as of Sep 30, 2024
6.79%
Yield to Worst
as of Sep 30, 2024
6.36%
WAL to Worst
as of Sep 30, 2024
13.29 yrs
Leverage
as of Sep 30, 2024
$ 588,172,374.00

Sustainability Characteristics

Sustainability Characteristics

To be included in MSCI ESG Fund Ratings, 65% (or 50% for bond funds and money market funds) of the fund’s gross weight must come from securities with ESG coverage by MSCI ESG Research (certain cash positions and other asset types deemed not relevant for ESG analysis by MSCI are removed prior to calculating a fund’s gross weight; the absolute values of short positions are included but treated as uncovered), the fund’s holdings date must be less than one year old, and the fund must have at least ten securities. MSCI Ratings are currently unavailable for this fund.

Business Involvement

Business Involvement

Business Involvement metrics can help investors gain a more comprehensive view of specific activities in which a fund may be exposed through its investments.


Business Involvement metrics are not indicative of a fund’s investment objective, and, unless otherwise stated in fund documentation and included within a fund’s investment objective, do not change a fund’s investment objective or constrain the fund’s investable universe. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodology behind the Business Involvement metrics, using links below.

MSCI - Controversial Weapons
as of Sep 30, 2024
0.96%
MSCI - Nuclear Weapons
as of Sep 30, 2024
0.89%
MSCI - Civilian Firearms
as of Sep 30, 2024
0.00%
MSCI - Tobacco
as of Sep 30, 2024
1.35%
MSCI - UN Global Compact Violators
as of Sep 30, 2024
0.04%
MSCI - Thermal Coal
as of Sep 30, 2024
0.00%
MSCI - Oil Sands
as of Sep 30, 2024
0.01%
Business Involvement Coverage
as of Sep 30, 2024
54.93%
Percentage of Fund not covered
as of Sep 30, 2024
45.07%
BlackRock business involvement exposures as shown above for Thermal Coal and Oil Sands are calculated and reported for companies that generate more than 5% of revenue from thermal coal or oil sands as defined by MSCI ESG Research. For the exposure to companies that generate any revenue from thermal coal or oil sands (at a 0% revenue threshold), as defined by MSCI ESG Research, it is as follows: Thermal Coal 0.07% and for Oil Sands 0.32%.

Business Involvement metrics are calculated by BlackRock using data from MSCI ESG Research which provides a profile of each company’s specific business involvement. BlackRock leverages this data to provide a summed up view across holdings and translates it to a fund's market value exposure to the listed Business Involvement areas above.


Business Involvement metrics are designed only to identify companies where MSCI has conducted research and identified as having involvement in the covered activity. As a result, it is possible there is additional involvement in these covered activities where MSCI does not have coverage. This information should not be used to produce comprehensive lists of companies without involvement. Business Involvement metrics are only displayed if at least 1% of the fund’s gross weight includes securities covered by MSCI ESG Research.

ESG Integration

ESG Integration

ESG integration is the practice of incorporating financially material environmental, social and governance (ESG) data or information into the investment decision process with the objective of enhancing risk-adjusted returns of our clients’ portfolios. Unless otherwise stated in Fund documentation or included within the Fund's investment objective, inclusion of this statement does not imply that the Fund has an ESG-aligned investment objective or strategy, but rather describes how ESG data or information is considered as part of the overall investment process.

The Fund manager includes ESG considerations in the investment research, portfolio construction, and investment monitoring phases of the investment process. The Fund manager maintains internal ESG scorecards for certain issuers under consideration for investment and certain existing issuers of publicly traded securities. These scorecards analyze and track internal and external research views across a range of environmental, social, and governance factors sourced from primary and third-party ESG information and research. Portfolio management teams may consider the sector and issuer ESG views and scores during portfolio construction. The Fund manager also considers ESG criteria during post-investment monitoring and conducts regular portfolio risk reviews between the investment team and BlackRock’s Risk and Quantitative Analysis group. These reviews include discussion of the portfolio's exposure to material ESG risks, where appropriate.

Fees

Fees

on net assets
Gross Expense Ratio 3.98%
Management Fee 0.97%
Interest Expense 2.94%
Other Expenses 0.07%
Acquired Fund Fees and Expenses 0.00%
on managed assets
Acquired Fund Fees and Expenses 0.00%
Interest Expenses 1.88%
Management Fee 0.62%
Other Expenses 0.04%
Gross Expense 2.54%

Fees data reflected above is current as of the latest annual shareholder report.

Ratings

Ratings

Morningstar Medalist Rating

Morningstar Medalist Rating - Bronze
Morningstar has awarded the Fund a Bronze medal. (Effective Apr 10, 2017)
Analyst-Driven % as of -
-
Data Coverage % as of -
-

Holdings

Holdings

as of Sep 30, 2024
Name Weight (%)
POWERSHARES SENIOR LOAN PORTFOLIO 4.32
VERIZON COMMUNICATIONS INC 2.08
ALTRIA GROUP INC 1.21
INTERNATIONAL PAPER CO 1.10
ENBRIDGE INC 1.10
Name Weight (%)
ALLIANT HOLDINGS INTERMDIATE LLC 1.03
HSBC CAPITAL FUNDING (DOLLAR 1) LP 0.98
DUN & BRADSTREET CORPORATION (THE) 0.98
BOEING CO 0.97
CITIGROUP INC 0.94
Holdings are subject to change. Fund holdings and allocations shown are unaudited, and may not be representative of current or future investments. The Fund is actively managed and its details, holdings and characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. The user relies on this data at its own risk and neither BlackRock nor any other party makes any representations or express or implied warranties (which are expressly disclaimed) nor shall they incur any liability for any errors or omissions in the data.

Exposure Breakdowns

Exposure Breakdowns

as of Sep 30, 2024

% of Market Value

Type Fund
as of Sep 30, 2024

% of Market Value

Type Fund
as of Sep 30, 2024

% of Market Value

Type Fund
as of Sep 30, 2024

% of Market Value

Type Fund
as of Sep 30, 2024

% of Market Value

Type Fund
as of Sep 30, 2024

% of Market Value

Type Fund
as of Sep 30, 2024

% of Market Value

Type Fund
The fund itself has not been rated by an independent rating agency. Credit quality ratings on underlying securities of the fund are received from S&P, Moody’s and Fitch and converted to the equivalent S&P major rating category. This breakdown is provided by BlackRock and takes the median rating of the three agencies when all three agencies rate a security the lower of the two ratings if only two agencies rate a security and one rating if that is all that is provided. Unrated securities do not necessarily indicate low quality. Below investment-grade is represented by a rating of BB and below. Ratings and portfolio credit quality may change over time.

Negative weightings may result from specific circumstances (including timing differences between trade and settle dates of securities purchased by the funds) and/or the use of certain financial instruments, including derivatives, which may be used to gain or reduce market exposure and/or risk management. Certain transactions the funds may utilize may give rise to a form of leverage through either (a) additional market exposure or (b) borrowing capital in an attempt to increase investment return. The use of such transactions includes certain leverage-related risks, including potential for higher volatility, greater decline of the fund’s net asset value and fluctuations of dividends and distributions paid by the fund.

Allocations are subject to change.

Portfolio Managers

Portfolio Managers

Jeff Cucunato
Jeff Cucunato
Managing Director

Jeff Cucunato is the lead portfolio manager for the Multi-Strategy Credit platform within BlackRock's Global Credit group.

Read More

Jeff Cucunato is the lead portfolio manager for the Multi-Strategy Credit platform within BlackRock's Global Credit group. Mr. Cucunato is responsible for managing portfolios that allocate to opportunities across the global credit markets. He also chairs the credit platform's Investment Strategy Group, which focuses on evaluating investment opportunities across global investment grade, high yield, bank loans and illiquid credit.

 
Previously, Mr. Cucunato was Head of Investment Grade Credit where he lead the firm's U.S. fundamental investment grade credit effort for over 10 years and spent 15 years as the lead portfolio manager for BlackRock's investment grade credit and long duration portfolios. He began his investment career in 1997 focusing on interest rate products, including management of BlackRock's inflation-linked bond portfolios. Mr. Cucunato joined BlackRock in 1995 as an analyst in the Institutional Client Business group, working with international clients and alternative investments. 
 
Mr. Cucunato earned a BA degree, cum laude, in history from Dartmouth College in 1995.

Mitchell S. Garfin, CFA
Mitchell S. Garfin, CFA
Co-Head of U.S. High Yield in Global Credit team

  

Read More

Mitchell S. Garfin, CFA, Managing Director, is the Co-Head of U.S. High Yield within BlackRock's Global Credit team. He is also responsible for managing Global High Yield strategies. 

 

Mr. Garfin joined BlackRock in 1997 as an analyst in the Account Management Group working with taxable financial institutional clients. He joined the Portfolio Management Group in 2000 as a credit research analyst and in 2005 moved to portfolio management.  Mr. Garfin moved to his current role in 2007 and serves as Head of the Global Credit Human Capital Committee.

 

Mr. Garfin earned a BA degree, with distinction, in finance from the University of Michigan in 1997, and an MBA degree in finance and economics from New York University in 2005.

Charley Hung
Charley Hung

CFA, CAIA, is a portfolio manager for the Multi-Strategy Credit team within BlackRock's Global Credit group.

Read More

Charley Hung, CFA, CAIA, is a portfolio manager for the Multi-Strategy Credit team within BlackRock's Global Credit group.

Charley earned a Bachelor of Science degree, summa cum laude, in Finance, Economics, and Statistics from New York University's Stern School of Business in 2013.

Portfolio Manager

Literature

Literature

 

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