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BTZ

BlackRock Credit Allocation Income Trust

Fixed Income

BTZ

BlackRock Credit Allocation Income Trust

  • Market Price as of Nov 19, 2019 $13.62
  • 1 Day Price Change as of Nov 19, 2019 -0.04 (-0.29%)
  • Distribution Rate as of Nov 18, 2019 7.37%
  • Premium Discount as of Nov 19, 2019 -8.28%

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

  • Returns

  1y 3y 5y 10y
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 12.76 6.87 6.51 9.40
Market Price (%) Market price return represents changes to the fund’s closing market price on its primary exchange and accounts for distributions from the fund. 18.65 7.30 7.50 9.37
  YTD 1m 1y 3y 5y 10y
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 18.51 -0.18 12.76 22.07 37.07 145.52
Market Price (%) Market price return represents changes to the fund’s closing market price on its primary exchange and accounts for distributions from the fund. 26.94 -0.31 18.65 23.54 43.56 145.00
  2014 2015 2016 2017 2018
Total Return (%) Total return represents changes to the NAV and accounts for distributions from the fund. 9.05 -1.57 11.09 10.14 -5.04
Market Price (%) Market price return represents changes to the fund’s closing market price on its primary exchange and accounts for distributions from the fund. 6.23 3.03 12.66 9.27 -10.33

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.

Growth of Hypothetical $10,000 The growth of hypothetical $10,000 chart reflects a hypothetical $10,000 investment and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.

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NAV Market Price

Distributions

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Ex-Date Payable Date Record Date Total Distribution Current year distributions are not classified as “Income,” “Short-Term Capital Gains,” “Long-Term Capital Gains,” or “Return of Capital” until approximately 60 days following calendar year-end. Return of Capital

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Year Total Distribution Current year distributions are not classified as “Income,” “Short-Term Capital Gains,” “Long-Term Capital Gains,” or “Return of Capital” until calendar year-end.

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.

Key Facts

Key Facts

Net Assets as of Nov 19, 2019 $1,542,700,686
Managed Assets -
Share Class launch date Dec 27, 2006
Exchange New York Stock Exchange Inc.
Asset Class Fixed Income
Morningstar Category Corporate Bond
Lipper Classification Corp Debt BBB Leveraged
CUSIP 092508100
Management Fee 0.88%
Gross Expense Ratio 1.82%
Shares Outstanding as of Nov 19, 2019 103,865,554
Number of Holdings as of Oct 31, 2019 872
Premium/Discount The amount the Fund is trading above or below the reported NAV expressed as a percentage of NAV. When the Fund’s closing price is greater than the Fund’s NAV, it is said to be trading at a "Premium" and the percentage is expressed as a positive number. When the Fund’s closing price is less than the Fund’s NAV, it is said to be trading at a "Discount" and the percentage is expressed as a negative number. Closing price is determined using the last traded price on the Fund’s listed exchange and NAV is calculated daily (usually 4:00pm eastern time). -

Portfolio Characteristics

Portfolio Characteristics

Distribution Rate The annual yield an investor would receive if the most recent fund distribution and current fund price stayed the same going forward. It is calculated by annualizing the most recent distribution and dividing by the fund's market price from the as-of-date. The distribution rate may include a return of capital. 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 relied upon for tax reporting purposes. as of Nov 18, 2019 7.37%
Yield to Worst The average rate of return of the portfolio at current market prices, adjusting for optionality. as of Oct 31, 2019 4.71%
Effective Duration Effective Duration measures the sensitivity of the price of a bond with or without embedded options to changes in interest rates, taking into account the likelihood of the bond being called, put and/or sunk prior to its final maturity date while incorporating after-tax impacts on the bond. The options-based duration model used by BlackRock employs certain assumptions and may differ from other fund complexes. Effective Duration is measured at the individual bond level, aggregated to the portfolio level, and adjusted for leverage, hedging transactions and non-bond holdings, including derivatives. as of Oct 31, 2019 6.97 yrs
WAL to Worst The weighted average time to receipt of principal, adjusting for embedding optionality. as of Oct 31, 2019 13.86 yrs
Leverage The amount of borrowed funds used to purchase assets in order to enhance returns. as of Oct 31, 2019 $ 568,373,251.00
% Leveraged The relative amount of total managed assets financed through leverage. as of Oct 31, 2019 26.77%
% Insured Amount of assets in the portfolio that have their principal and interest backed by an additional entity in the form of insurance, relative to the total managed assets. as of Oct 31, 2019 0.12%

Ratings

Ratings

Morningstar Rating

4
Overall Morningstar Rating for BlackRock Credit Allocation Income Trust, -, as of Oct 31, 2019 rated against 8 Corporate Bond Funds based on risk adjusted total return.

Holdings

Holdings

as of Oct 31, 2019
Name Weight (%)
VERIZON COMMUNICATIONS INC 2.65
BANK OF AMERICA CORP 2.21
WELLS FARGO & COMPANY 2.10
AVIATION CAPITAL GROUP LLC 1.92
JPMORGAN CHASE & CO 1.67
Name Weight (%)
INTERNATIONAL PAPER CO 1.32
ROYAL BANK OF SCOTLAND GROUP PLC 1.26
MORGAN STANLEY 1.23
ENERGY TRANSFER OPERATING LP 1.20
KINDER MORGAN ENERGY PARTNERS LP 1.13

Exposure Breakdowns

Exposure Breakdowns

as of Oct 31, 2019

% of Market Value Based on Managed Assets

Type Fund
as of Oct 31, 2019

% of Market Value Based on Managed Assets

Type Fund
as of Oct 31, 2019

% of Market Value Based on Managed Assets

Type Fund
as of Oct 31, 2019

% of Market Value Based on Managed Assets

Type Fund
as of Oct 31, 2019

% of Market Value Based on Managed Assets

Type Fund
as of Oct 31, 2019

% of Market Value Based on Managed Assets

Type Fund
as of Oct 31, 2019

% of Market Value Based on Managed Assets

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
Head of Multi-Strategy Credit

     

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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.

Stephan Bassas
Stephan Bassas
Managing Director

Stephan Bassas, Managing Director, is Head of Americas Liability Driven Investing and a member of Americas Fixed Income within Alpha Strategies. In addition to his responsibilities leading the North America LDI effort, he is also an active participant in the Investment Grade Credit Group as a senior portfolio manager.

Mr. Bassas' service with the firm dates back to 2000, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, Mr. Bassas was the lead PM on European corporate bond portfolios. Prior to joining MLIM in 2000, Mr. Bassas worked as a portfolio manager and asset swap proprietary trader for Paribas Asset Management and Paribas Capital Markets in Luxembourg and London.

Mr. Bassas earned an MBA degree from the University of Lyon, France in 1993 and attended the Investment Management Program at the London Business School in 2000.

Read More

Stephan Bassas, Managing Director, is Head of Americas Liability Driven Investing and a member of Americas Fixed Income within Alpha Strategies. In addition to his responsibilities leading the North America LDI effort, he is also an active participant in the Investment Grade Credit Group as a senior portfolio manager.

Mr. Bassas' service with the firm dates back to 2000, including his years with Merrill Lynch Investment Managers (MLIM), which merged with BlackRock in 2006. At MLIM, Mr. Bassas was the lead PM on European corporate bond portfolios. Prior to joining MLIM in 2000, Mr. Bassas worked as a portfolio manager and asset swap proprietary trader for Paribas Asset Management and Paribas Capital Markets in Luxembourg and London.

Mr. Bassas earned an MBA degree from the University of Lyon, France in 1993 and attended the Investment Management Program at the London Business School in 2000.

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

  

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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.

Portfolio Manager

Literature

Literature

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