Multi Asset

ECAT

BlackRock ESG Capital Allocation Trust

  • NAV as of Mar 24, 2023 $17.05
    52 WK: 15.76 - 19.21
  • 1 Day NAV Change as of Mar 24, 2023 0.01 (0.06%)
  • Market Price as of Mar 24, 2023 $14.68
  • 1 Day Price Change as of Mar 24, 2023 0.09 (0.62%)
  • Distribution Rate as of Mar 24, 2023 10.22%
  • Premium Discount as of Mar 24, 2023 -13.90%

Overview

Investment Approach

BlackRock ESG Capital Allocation Trust’s (ECAT) (the 'Trust') investment objectives are to provide total return and income through a combination of current income, current gains and long-term capital appreciation. The Trust invests in a portfolio of equity and debt securities. Generally, the Trust’s portfolio will include both equity and debt securities. At any given time, however, the Trust may emphasize either debt securities or equity securities. The Trust will invest at least 80% of its total assets in securities that, in the Advisor’s assessment, meet the environmental, social and governance (“ESG”) criteria as described in the Trust’s prospectus and shareholder reports. The Trust utilizes an option writing (selling) strategy in an effort to generate current gains from options premiums and to enhance the Trust’s risk-adjusted 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 Income

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 Incept.
Total Return (%) -12.89 - - - -7.54
Market Price (%) -21.91 - - - -21.92
  YTD 1m 1y 3y 5y 10y Incept.
Total Return (%) -12.89 -4.01 -12.89 - - - -9.41
Market Price (%) -21.91 -5.67 -21.91 - - - -26.79
  2018 2019 2020 2021 2022
Total Return (%) - - - - -12.89
Market Price (%) - - - - -21.91

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 $1,745,180,448
Size of Fund (Millions) as of Mar 24, 2023 $1,745.2 M
Share Class launch date Sep 27, 2021
Exchange New York Stock Exchange Inc.
Asset Class MultiAsset
Morningstar Category Tactical Allocation
Lipper Classification Opt Arbitrage/Opt Strat
CUSIP 09262F100
Shares Outstanding as of Mar 24, 2023 102,382,241
Number of Holdings as of Feb 28, 2023 373
Managed Assets as of Mar 24, 2023 $1,745,180,447.65
Premium Discount as of Mar 24, 2023 -13.90%

Portfolio Characteristics

Portfolio Characteristics

Distribution Rate as of Mar 24, 2023 10.22%
Average Market Cap (Millions) as of Feb 28, 2023 $ 268,324.0 M
Yield to Worst as of Feb 28, 2023 2.78%
Effective Duration as of Feb 28, 2023 1.30 yrs
Type of Options Single Stock, Index
% Overwritten as of Feb 28, 2023 12.76

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. Learn more


This fund seeks to follow a sustainable, impact or ESG investment strategy, as disclosed in its prospectus. For more information regarding the 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 Feb 07, 2023 AA
MSCI ESG % Coverage as of Feb 07, 2023 69.12%
MSCI ESG Quality Score (0-10) as of Feb 07, 2023 7.7
MSCI ESG Quality Score - Peer Percentile as of Feb 07, 2023 58.58%
Fund Lipper Global Classification as of Feb 07, 2023 Alternative Other
Funds in Peer Group as of Feb 07, 2023 169
MSCI Weighted Average Carbon Intensity (Tons CO2E/$M SALES) as of Feb 07, 2023 196.03
MSCI Weighted Average Carbon Intensity % Coverage as of Feb 07, 2023 62.53%
All data is from MSCI ESG Fund Ratings as of Feb 07, 2023, based on holdings as of Aug 31, 2022. 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. 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 0.00%
MSCI - UN Global Compact Violators as of Feb 28, 2023 0.02%
MSCI - Nuclear Weapons as of Feb 28, 2023 0.00%
MSCI - Thermal Coal as of Feb 28, 2023 0.00%
MSCI - Civilian Firearms as of Feb 28, 2023 0.00%
MSCI - Oil Sands as of Feb 28, 2023 0.00%
MSCI - Tobacco as of Feb 28, 2023 0.00%
Business Involvement Coverage as of Feb 28, 2023 74.78%
Percentage of Fund not covered as of Feb 28, 2023 25.22%
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 0.01% and for Oil Sands 0.57%.

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 Global Allocation Investment Team believes that a company’s ability to manage material environmental, social and governance (“ESG”) issues may be essential to the company’s ability to sustain growth and generate value for shareholders over the long term, and thus ESG performance indicators are considered as part of our investment process. For long-term investors like Global Allocation, incorporating ESG information into its research and investment decisions has been, and remains, very important to our fundamental investment process and our goal of seeking to maximize risk-adjusted returns.


The team analyzes ESG data when conducting research and due diligence on new investments, and when monitoring existing investments within the portfolio. The team’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 0.00%
Other Expenses 0.04%
Acquired Fund Fees and Expenses 0.04%
Gross Expense Ratio 1.33%
on managed assets
Management Fee 1.25%
Interest Expense 0.00%
Other Expenses 0.04%
Acquired Fund Fees and Expenses 0.04%
Gross Expense Ratio 1.33%

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

Ratings

Holdings

Holdings

as of Feb 28, 2023
Name Weight (%)
S&P500 EMINI MAR 23 3.23
NASDAQ 100 E-MINI MAR 23 3.08
MICROSOFT CORP 2.56
THERMO FISHER SCIENTIFIC INC 2.06
BOSTON SCIENTIFIC CORP 2.03
Name Weight (%)
MARSH & MCLENNAN INC 1.81
ALPHABET INC CLASS C 1.78
LVMH 1.67
AMERICAN TOWER REIT CORP 1.60
NEXTERA ENERGY INC 1.48
as of Feb 28, 2023
Name Weight (%)
UMBS 30YR TBA(REG A) 8.49
ISHARES JPMORGAN USD EMERGING MARK 0.75
SPRINT CORP 7.875 09/15/2023 0.54
ABBVIE INC 3.2 11/21/2029 0.38
GALAXY BRANDS (REFI) TL Prvt 0.35
Name Weight (%)
CSX CORP 4.1 11/15/2032 0.35
SPDR BLOOMBERG HIGH YIELD BOND ETF 0.33
WORKDAY INC 3.5 04/01/2027 0.33
CML PARADISE PLAZA CML Prvt 0.31
ANHEUSER-BUSCH INBEV WORLDWIDE INC 3.5 06/01/2030 0.30

Exposure Breakdowns

Exposure Breakdowns

as of Feb 28, 2023

% of Market Value

Type Fund
Allocations subject to change.
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.

as of Feb 28, 2023

% of Market Value

Type Fund

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.


% of Net Assets represents the Fund’s exposure based on the economic value of securities and is adjusted for futures, options, and swaps (except with respect to fixed income securities), and convertible bonds.

Portfolio Managers

Portfolio Managers

Rick Rieder
Rick Rieder
Managing Director, CIO of Global Fixed Income

        

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Rick Rieder, Managing Director, is BlackRock's Chief Investment Officer of Global Fixed Income, Head of the Fundamental Fixed Income business, and Head of the Global Allocation Investment Team. Mr. Rieder is responsible for roughly $2.4 trillion in assets. He is a member of BlackRock’s Executive Sub-Committee on Investments, a member of BlackRock's Global Operating Committee, and Chairman of the firm-wide BlackRock Investment Council.

 

Before joining BlackRock in 2009, Mr. Rieder was President and Chief Executive Officer of R3 Capital Partners. He served as Vice Chairman and member of the Borrowing Committee for the U.S. Treasury and member of the Federal Reserve’s Investment Advisory Committee on Financial Markets.

 

Mr. Rieder currently serves on the Alphabet/Google Investment Advisory Committee and the UBS Research Advisory Board. He was nominated for Outstanding Portfolio Manager by Morningstar in 2021, was awarded the Global Unconstrained Fixed Income Manager of the Year for 2015 by Institutional Investor, was nominated for Fixed Income Manager of the Year by Institutional Investor for 2014, and was inducted into the Fixed Income Analysts Society Fixed Income Hall of Fame in 2013. Four of the funds Mr. Rieder manages (Strategic Income Opportunities, Fixed Income Global Opportunities, Total Return, and Strategic Global Bond) have been awarded Gold Medals by Morningstar.

 

From 1987 to 2008, Mr. Rieder was with Lehman Brothers, most recently as head of the firm's Global Principal Strategies team, a global proprietary investment platform. He was also global head of the firm's credit businesses, Chairman of the Corporate Bond and Loan Capital Commitment Committee, and a member of the Board of Trustees for the corporate pension fund. Before joining Lehman Brothers, Mr. Rieder was a credit analyst at SunTrust Banks in Atlanta.

 

Mr. Rieder earned a BBA degree in Finance from Emory University in 1983 and an MBA degree from The Wharton School of the University of Pennsylvania in 1987. He is a member of the board of Emory University, Emory's Business School, and the University's Finance Committee, and is the Vice Chairman of the Investment Committee. Mr. Rieder is founder and chairman of the business school's BBA investment fund and community financial literacy program.

 

Mr. Rieder serves as Chairman and President of the Board of Education for North Star Academy's fourteen Charter Schools in Newark, New Jersey, and is the Founder and Chairman of the Board of Graduation Generation Public School Collaboration in Atlanta. He is on the Board of the BlackRock Foundation, the Board of Advisors for the Hospital for Special Surgery, and the Board of Big Brothers/Big Sisters of Newark and Essex County. Mr. Rieder formerly served on the Board and National Leadership Council of the Communities in Schools Educational Foundation, and Trustee for the US Olympic Foundation. Mr. Rieder was honored at the Choose Success Awards ceremony in Atlanta in 2015 for his dedication to public education in Atlanta through CIS and Graduation Generation.

David Clayton, CFA, JD
David Clayton, CFA, JD

  

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David Clayton, CFA, JD, Managing Director and portfolio manager, is a member of the Global Allocation team.

 

Mr. Clayton joined the BlackRock Global Allocation team in 2010 and was named a portfolio manager of the Fund in 2017. Prior to his current role, he was head of portfolio oversight, as well as a senior investor and investment group leader, on the Fund, primarily responsible for coverage of the energy, real estate, autos, industrials, materials and utilities sectors. Prior to joining BlackRock, he was Of Counsel in the Financial Restructuring Group at Milbank, Tweed, Hadley & McCloy LLP. Previously he was a Managing Director and analyst with The Blackstone Group, responsible for distressed and special situations investments across multiple industries. Prior to joining Blackstone, Mr. Clayton spent six years at Merrill Lynch Investment Managers (MLIM), initially as an attorney specializing in corporate finance transactions and restructurings, and most recently as a Vice President and analyst in the Global High Yield Bond & Bank Debt Group. Mr. Clayton began his career as an attorney specializing in corporate finance transactions, first at Blake, Cassels & Graydon in Toronto and then at Milbank in New York.

 

Mr. Clayton earned a BA degree, with honors, in economics from the University of Western Ontario in 1990 and MBA and LLB degrees from Dalhousie University in 1994. He is a CFA® Charterholder.

Russ Koesterich, CFA, JD
Russ Koesterich, CFA, JD

        

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Russ Koesterich, CFA, JD, Managing Director and portfolio manager, is a member of the Global Allocation team.

 

Mr. Koesterich's service with the firm dates back to 2005, including his years with Barclays Global Investors (BGI), which merged with BlackRock in 2009. He joined the BlackRock Global Allocation team in 2016 as Head of Asset Allocation and was named a portfolio manager of the Fund in 2017. Previously, he was BlackRock's Global Chief Investment Strategist and Chairman of the Investment Committee for the Model Portfolio Solutions business, and formerly served as the Global Head of Investment Strategy for scientific active equities and as senior portfolio manager in the U.S. Market Neutral Group. Prior to joining BGI, Mr. Koesterich was the Chief North American Strategist at State Street Bank and Trust. He began his investment career at Instinet Research Partners where he occupied several positions in research, including Director of Investment Strategy for both U.S. and European research, and Equity Analyst. He is a frequent contributor to financials news media and the author of two books, including his most recent "The Ten Trillion Dollar Gamble."

 

Mr. Koesterich earned a BA in history from Brandeis University, a JD from Boston College and an MBA from Columbia University. He is a CFA Charterholder.

Kate Moore
Kate Moore

  

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Kate Moore, Managing Director, is a member of the Global Allocation investment team and Head of Thematic Strategy. Her investment mandate includes identifying opportunities to exploit structural change, policy evolution, and dislocations across global industries. She is a member of the Human Capital Committee.

Ms. Moore's service with the firm dates back to June 2016, when she joined as Chief Equity Strategist in the BlackRock Investment Institute. In that role, she was responsible for research on global equity markets, formulating tactical investment recommendations, and delivering thought leadership to both internal stakeholders and clients.

Prior to joining BlackRock, Ms. Moore was the Chief Investment Strategist for the Private Bank at J.P. Morgan and a member of the Global Investment Committee. In this role she set asset allocation and investment strategy for US discretionary multi-asset portfolios and managed a macro equity strategy for private clients. Before joining J.P. Morgan, Ms. Moore was the Senior Global Equity Strategist at BofA Merrill Lynch Global Research, an Emerging Markets Strategist at Moore Capital Management, and a member of the Global Strategy team at Morgan Stanley Investment Management, a team which managed several global asset allocation funds. Ms. Moore began her career as a strategy consultant for both Mitchell Madison Group and Silver Oak Partners.

Ms. Moore regularly contributes her macro and financial market views across a variety of global media outlets. She holds a B.A. in Political and Social Thought from the University of Virginia, where she currently serves on the Board of Managers of the Alumni Association. She also holds an M.A. in Political Economy from the University of Chicago.

Portfolio Manager

Literature

Literature