Fixed Income

BIT

Multi-Sector Income Trust

  • NAV as of Mar 24, 2023 $14.48
    52 WK: 14.37 - 16.80
  • 1 Day NAV Change as of Mar 24, 2023 -0.07 (-0.48%)
  • Market Price as of Mar 24, 2023 $14.08
  • 1 Day Price Change as of Mar 24, 2023 -0.11 (-0.78%)
  • Distribution Rate as of Mar 24, 2023 10.54%
  • Premium Discount as of Mar 24, 2023 -2.76%

Overview

Investment Approach

BlackRock Multi-Sector Income Trust’s (BIT) (the 'Trust') primary investment objective is to seek high current income, with a secondary objective of capital appreciation. The Trust seeks to achieve its investment objectives by investing, under normal market conditions, at least 80% of its assets in loan and debt instruments and other investments with similar economic characteristics. 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 FLEXIBLE BOND FUND BUILT TO ADAPT

A flexible bond fund that blends traditional and non-traditional investment strategies

DIVERSIFIED, UNBIASED APPROACH

Seeks to provide a more diversified approach to generating returns


PROVEN RECORD OF HIGH INCOME AND RETURNS

The fund has consistently delivered an attractive yield and high returns


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Performance

Performance

Growth of Hypothetical $10,000

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NAV Market Price

Distributions

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

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Year Total Distribution

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 (%) -8.68 3.66 2.91 -
Market Price Total Return (%) -14.34 4.76 3.89 -
  YTD 1m 1y 3y 5y 10y
NAV Total Return (%) -8.68 0.32 -8.68 11.40 15.44 -
Market Price Total Return (%) -14.34 -3.81 -14.34 14.98 21.00 -
  2018 2019 2020 2021 2022
NAV Total Return (%) -2.17 5.93 16.43 4.78 -8.68
Market Price Total Return (%) -8.02 14.41 19.59 12.23 -14.34

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 Mar 24, 2023 $546,196,029
Size of Fund (Millions) as of Mar 24, 2023 $546.2 M
Share Class launch date Feb 25, 2013
Exchange New York Stock Exchange Inc.
Asset Class Fixed Income
Morningstar Category Multisector Bond
Lipper Classification General Bond Funds
CUSIP 09258A107
Shares Outstanding as of Mar 24, 2023 37,712,759
Number of Holdings as of Feb 28, 2023 1,535
Managed Assets as of Mar 24, 2023 $803,744,974.29
Premium Discount as of Mar 24, 2023 -2.76%

Portfolio Characteristics

Portfolio Characteristics

Distribution Rate as of Mar 24, 2023 10.54%
Yield to Worst as of Feb 28, 2023 9.80%
Effective Duration as of Feb 28, 2023 1.69 yrs
WAL to Worst as of Feb 28, 2023 10.95 yrs
Leverage as of Feb 28, 2023 $ 275,662,895.00
% Leveraged as of Feb 28, 2023 33.08%
% Insured as of Feb 28, 2023 0.05%
% Overwritten with Swaptions as of Oct 31, 2022 0.04

Sustainability Characteristics

Sustainability Characteristics

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. 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 Feb 28, 2023 0.37%
MSCI - UN Global Compact Violators as of Feb 28, 2023 0.07%
MSCI - Nuclear Weapons as of Feb 28, 2023 0.35%
MSCI - Thermal Coal as of Feb 28, 2023 0.01%
MSCI - Civilian Firearms as of Feb 28, 2023 0.00%
MSCI - Oil Sands as of Feb 28, 2023 0.04%
MSCI - Tobacco as of Feb 28, 2023 0.10%
Business Involvement Coverage as of Feb 28, 2023 36.40%
Percentage of Fund not covered as of Feb 28, 2023 63.60%
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 0.04% and for Oil Sands 0.06%.

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 combination with other information in the research and due diligence phase of the investment process. ESG information may be sourced internally, via collaboration with the BlackRock Investment Stewardship team in engaging issuers on material environmental, social or governance topics, or from third-party providers. The Fund manager’s ongoing monitoring of the portfolio involves regular portfolio risk reviews with the Risk and Quantitative Analysis group. These reviews include discussion of the portfolio’s exposure to material ESG risks, as well as exposure to sustainability-related business involvements, climate-related metrics, and other factors.

Fees

Fees

on net assets
Management Fee 1.25%
Interest Expense 0.65%
Other Expenses 0.09%
Acquired Fund Fees and Expenses 0.00%
Gross Expense Ratio 1.99%
on managed assets
Management Fee 0.80%
Interest Expense 0.42%
Other Expenses 0.06%
Acquired Fund Fees and Expenses 0.00%
Gross Expense Ratio 1.28%

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

Ratings

Holdings

Holdings

as of Feb 28, 2023
Name Weight (%)
FEDERAL NATIONAL MORTGAGE ASSOCIATION 8.91
UNIFORM MBS 2.17
TRANSDIGM INC 1.33
GOLDMAN SACHS GROUP INC/THE 1.29
WELLS FARGO & COMPANY 1.04
Name Weight (%)
BANK OF AMERICA CORP 0.96
FEDERAL HOME LOAN MORTGAGE CORPORATION 0.82
CCO HOLDINGS LLC 0.77
ALLIANT HOLDINGS INTERMEDIATE LLC 0.77
SOCIETE GENERALE SA 0.64

Exposure Breakdowns

Exposure Breakdowns

as of Feb 28, 2023

% of Market Value

Type Fund
as of Feb 28, 2023

% of Market Value

Type Fund
as of Feb 28, 2023

% of Market Value

Type Fund
as of Feb 28, 2023

% of Market Value

Type Fund
as of Feb 28, 2023

% of Market Value

Type Fund
as of Feb 28, 2023

% of Market Value

Type Fund
as of Feb 28, 2023

% 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.

Allocations are subject to change.

Portfolio Managers

Portfolio Managers

Scott MacLellan, CFA, CMT
Scott MacLellan, CFA, CMT
Managing Director, Portfolio Manager

  

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Scott MacLellan, CFA, CMT, Managing Director, is a portfolio manager in BlackRock's Global Fixed Income Group. He is the co-lead portfolio manager of BlackRock's Low Duration Bond Fund, BGF USD Short Duration Bond Fund and the iShares Short Maturity Bond ETF (NEAR). As a lead portfolio manager on the USD short duration fixed income platform, he also focuses on managing a large number of multi sector fixed income separate accounts. Mr. MacLellan is named as lead portfolio manager for the BlackRock Target Allocation Shares Series P Fund and the lead portfolio manager for four multi-sector BlackRock closed end funds, the BlackRock Core Bond Trust, BlackRock Multi-Sector Income Trust, BlackRock Limited Duration Income Trust and Enhanced Government Fund. He also served on BlackRock's Obsidian hedge fund team.


Mr. MacLellan serves in number of capacities with regard to sustainable investing in the Fundamental Fixed Income Team, including as a member of the Global Fixed Income ESG Leadership Committee and a member of the ESG Advisory Group to the Fundamental Fixed Income Executive Committee.

 

Prior to assuming his current responsibilities in 2012, Mr. MacLellan was a an account manager in the Global Client Group, covering clients in Asia and the Middle East. Previously, Mr. MacLellan spent four years with Nomura BlackRock Asset Management (NBAM) in Tokyo. Prior to joining NBAM in 2001, Mr. MacLellan spent a year at the Industrial Bank of Japan Leasing in Tokyo, investing in emerging markets.

 

Mr. MacLellan earned a BA degree, with combined honors, in economics and international development studies from King's College, Dalhousie University in Canada. Mr. MacLellan attended the Graduate School of International Relations and Pacific Studies at the University of California, San Diego and Tohoku University in Japan. He has received both the Chartered Financial Analyst and Chartered Market Technician designations. He is proficient in Japanese.

Akiva Dickstein
Akiva Dickstein
Managing Director, Head of Customized Multi-Sector Portfolios

    

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Akiva Dickstein, Managing Director, is Head of Customized Core Portfolios within BlackRock's Americas Fixed Income Alpha Strategies and a member of the Americas Fixed Income Executive Team. Prior to his current role, he was the lead manager for the firm's mortgage portfolios.

 

Before joining BlackRock in 2009, Mr. Dickstein spent eight years at Merrill Lynch, where he served as Managing Director and head of the U.S. Rates & Structured Credit Research Group. He was responsible for the team that produced MBS, ABS, CMBS, Treasuries, swaps, and interest rate derivatives research. Mr. Dickstein's publications on MBS strategy included the weekly Mortgage Investor as well as numerous lengthier articles on topics such as optimal loan modifications, the valuation of credit-sensitive MBS and ABS, and the pricing of mortgage derivatives, options, and pass-throughs. In addition, he developed Merrill's prepayment models for fixed rate and hybrid MBS. From 1993 to 2001, Mr. Dickstein was with Lehman Brothers, most recently as a Senior Vice President in Mortgage Derivatives Trading. In this role, he traded mortgage derivatives and developed Lehman's credit default model. He joined Lehman as a mortgage and asset-backed securities analyst and was named to Institutional Investor's All American Fixed Income Research Team in pass-throughs, non-agency mortgages, and asset-backed securities.

 

Mr. Dickstein earned a BA degree in economics, summa cum laude, from Yale University in 1990, and an MA degree in physics from Princeton University in 1993.

Samir Lakhani
Samir Lakhani
Portfolio Manager

Literature

Literature