Fixed Income

BTZ

BlackRock Credit Allocation Income Trust

Overview

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Performance

Performance

Growth of Hypothetical $10,000

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Distributions

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  1y 3y 5y 10y
-3.82 6.07 5.65 6.68
Market Price Total Return (%) -8.40 7.54 5.93 6.75
  YTD 1m 1y 3y 5y 10y
-8.21 -1.71 -3.82 19.32 31.64 90.86
Market Price Total Return (%) -15.45 -1.84 -8.40 24.38 33.35 92.11
  2017 2018 2019 2020 2021
NAV Total Return (%) 10.14 -5.04 21.90 12.78 2.80
Market Price Total Return (%) 9.27 -10.33 33.49 13.07 9.36

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 Jul 01, 2022 $1,092,606,182
Size of Fund (Millions) as of Jul 01, 2022 $1,092.6 M
Share Class launch date Dec 27, 2006
Exchange New York Stock Exchange Inc.
Asset Class Fixed Income
Morningstar Category Multisector Bond
Lipper Classification Corp Debt BBB Leveraged
CUSIP 092508100
Management Fee 0.62%
Gross Expense Ratio 1.12%
Shares Outstanding as of Jul 01, 2022 93,507,103
Number of Holdings as of May 31, 2022 1,448
Managed Assets as of Jul 01, 2022 $1,638,862,980.34
Premium Discount as of Jul 01, 2022 -6.34%

Portfolio Characteristics

Portfolio Characteristics

Distribution Rate as of Jul 01, 2022 9.20%
Yield to Worst as of May 31, 2022 8.03%
Effective Duration as of May 31, 2022 6.62 yrs
WAL to Worst as of May 31, 2022 17.18 yrs
Leverage as of May 31, 2022 $ 539,534,679.00
% Leveraged as of May 31, 2022 31.29%
% Insured as of May 31, 2022 0.00%

Sustainability Characteristics

Sustainability Characteristics

Sustainability Characteristics provide investors with specific non-traditional metrics. Alongside other metrics and information, these enable investors to evaluate funds on certain environmental, social and governance characteristics. Sustainability Characteristics do not provide an indication of current or future performance nor do they represent the potential risk and reward profile of a fund. They are provided for transparency and for information purposes only. Sustainability Characteristics should not be considered solely or in isolation, but instead are one type of information that investors may wish to consider when assessing a fund.


The metrics are not indicative of how or whether ESG factors will be integrated into a fund. Unless otherwise stated in fund documentation and included within a fund’s investment objective, the metrics do not change a fund’s investment objective or constrain the fund’s investable universe, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a fund. For more information regarding a fund's investment strategy, please see the fund's prospectus.


Review the MSCI methodologies behind Sustainability Characteristics using the links below.

MSCI ESG Fund Rating (AAA-CCC) as of Apr 07, 2022 A
MSCI ESG % Coverage as of Apr 07, 2022 81.24%
MSCI ESG Quality Score (0-10) as of Apr 07, 2022 6.7
MSCI ESG Quality Score - Peer Percentile as of Apr 07, 2022 13.50%
Fund Lipper Global Classification as of Apr 07, 2022 Bond USD Corporates
Funds in Peer Group as of Apr 07, 2022 274
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Apr 07, 2022 314.62
MSCI Weighted Average Carbon Intensity % Coverage as of Apr 07, 2022 79.86%
All data is from MSCI ESG Fund Ratings as of Apr 07, 2022, based on holdings as of Dec 31, 2021. As such, the fund’s sustainable characteristics may differ from MSCI ESG Fund Ratings from time to time.

To be included in MSCI ESG Fund Ratings, 65% 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. For newly launched funds, Sustainability Characteristics are typically available 6 months after launch.

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, and there is no indication that an ESG or Impact focused investment strategy or exclusionary screens will be adopted by a fund. 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 May 31, 2022 0.79%
MSCI - UN Global Compact Violators as of May 31, 2022 1.39%
MSCI - Nuclear Weapons as of May 31, 2022 0.39%
MSCI - Thermal Coal as of May 31, 2022 0.02%
MSCI - Civilian Firearms as of May 31, 2022 0.00%
MSCI - Oil Sands as of May 31, 2022 0.08%
MSCI - Tobacco as of May 31, 2022 1.36%

Business Involvement Coverage as of May 31, 2022 64.20%
Percentage of Fund not covered as of May 31, 2022 35.80%
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 0.40%.

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 material environmental, social and governance (ESG) information or insights alongside traditional measures into the investment decision process to improve long term financial outcomes of 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, but rather describes how ESG information is considered as part of the overall investment process.


The Fund manager includes ESG considerations in the initial screening, sourcing and due diligence phases of the investment process. In the due diligence process, the Fund manager uses an internal ESG risk assessment to identify, analyze and document key ESG risks. Specialist consultants may also be appointed to further support due diligence if needed. Identified material ESG risks and relevant mitigating actions are documented in Investment Committee material. This information, where appropriate, is discussed at relevant Investment Committee meetings, and is considered in the Investment Committee’s investment decision. In the structuring and documentation stage of the investment process, the investment team considers requesting bespoke information related to ESG. The Fund’s ongoing portfolio management process includes the monitoring of ESG criteria over the life of an investment, and each portfolio company’s ESG assessment is refreshed on a quarterly basis. Furthermore, the investment team and the Risk and Quantitative Analysis group analyze and discuss the portfolio’s exposure to material ESG risks as part of the portfolio risk review each quarter.

Fees

Fees

on net assets
Management Fee 0.87%
Interest Expense 0.18%
Other Expenses 0.07%
Acquired Fund Fees and Expenses 0.00%
Gross Expense Ratio 1.12%
on managed assets
Management Fee 0.62%
Interest Expense 0.13%
Other Expenses 0.05%
Acquired Fund Fees and Expenses 0.00%
Gross Expense Ratio 0.80%

Ratings

Holdings

Holdings

as of May 31, 2022
Name Weight (%)
VERIZON COMMUNICATIONS INC 2.19
WELLS FARGO & COMPANY 1.52
CHARTER NEXT GENERATION INC 1.37
DEERFIELD DAKOTA HOLDING LLC 1.36
UKG INC 1.27
Name Weight (%)
MH SUB I LLC 1.27
GENESYS CLOUD SERVICES HOLDINGS II LLC 1.27
PERATON CORP 1.26
TRANSDIGM INC 1.22
NATWEST GROUP PLC 1.22

Exposure Breakdowns

Exposure Breakdowns

as of May 31, 2022

% of Market Value

Type Fund
as of May 31, 2022

% of Market Value

Type Fund
as of May 31, 2022

% of Market Value

Type Fund
as of May 31, 2022

% of Market Value

Type Fund
as of May 31, 2022

% of Market Value

Type Fund
as of May 31, 2022

% of Market Value

Type Fund
as of May 31, 2022

% 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
Managing Director

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

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

  

Charley Hung

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

Portfolio Manager

Literature

Literature