BlackRock Capital Allocation Trust Announces Initial Distribution and Fund Commentary
12/04/2020 - 04:30 PM
NEW YORK--(BUSINESS WIRE
Declaration Date- 12/4/2020 Ex-Date- 12/14/2020 Record Date- 12/15/2020 Payable Date- 12/31/2020
Trust
Ticker
Initial Monthly
Per-Share
Distribution
Yield on Initial Public
Offering (“IPO”) Price*
BlackRock Capital Allocation Trust
BCAT
$0.10 4100
6.25%
*The yield on the IPO price shown above is calculated by dividing the initial monthly per-share distribution by the Trust’s IPO price of $20.00 per share and annualizing the results.
For an update on the Trust’s portfolio and positioning please see the BCAT Mid-Quarter Update .
The Trust has adopted a managed distribution plan (the “Plan”) and employs an option over-write policy to support a level distribution of income, capital gains and/or return of capital. The fixed amounts distributed per share are subject to change at the discretion of the Trust’s Board of Trustees. Under the Plan, the Trust will distribute all available investment income to its shareholders, consistent with its primary investment objectives and as required by the Internal Revenue Code of 1986, as amended (the “Code”). If sufficient investment income is not available on a monthly basis, the Trust will distribute long-term capital gains and/or return capital to its shareholders in order to maintain a level distribution.
The estimated sources of the Trust’s distribution as of November 30, 2020 and for its current fiscal year are as follows:
Estimated Allocations as of November 30, 2020
Trust
Distribution
Net Investment Income
Net Realized Short-Term Gains
Net Realized Long-Term Gains
Return of Capital
BCAT1
$0.10 4100
$0.01 3907 (13% )
$0.02 0364 (20% )
$0 (0% )
$0.06 9829 (67% )
Estimated Allocations for the Fiscal Year through November 30, 2020
Trust
Distribution
Net Investment Income
Net Realized Short-Term Gains
Net Realized Long-Term Gains
Return of Capital
BCAT1
$0.10 4100
$0.01 3907 (13% )
$0.02 0364 (20% )
$0 (0% )
$0.06 9829 (67% )
1The Trust estimates that it has distributed more than its income and net-realized capital gains in the current fiscal year; therefore, a portion of your distribution may be a return of capital. A return of capital may occur, for example, when some or all of the shareholder’s investment is paid back to the shareholder. A return of capital distribution does not necessarily reflect the Trust’s investment performance and should not be confused with ‘yield’ or ‘income’. When distributions exceed total return performance, the difference will reduce the Trust’s net asset value per share.
The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. The actual amounts and sources of the amounts for tax reporting purposes will depend upon the Trust’s investment experience during the remainder of its fiscal year and may be subject to changes based on tax regulations. The Trust will send you a Form 1099-DIV for the calendar year that will tell you how to report these distributions for federal income tax purposes.
Trust Performance and Distribution Rate Information:
Trust
Average annual total return (in relation to NAV) for the 5-year period ending on 10/31/2020
Annualized current distribution rate expressed as a percentage of NAV as of 10/31/2020
Cumulative total return (in relation to NAV) for the fiscal year through 10/31/2020
Cumulative fiscal year distributions as a percentage of NAV as of 10/31/2020
BCAT*
-1.50%
6.34%
-1.50%
-
*The Trust launched within the past 5 years; the performance and distribution rate information presented reflects data from inception to 10/31/2020.
Shareholders should not draw any conclusions about the Trust’s investment performance from the amount of the Trust’s current distributions or from the terms of the Plan.
The amount distributed per share under the Plan is subject to change at the discretion of the Trust’s Board. The Plan will be subject to ongoing review by the Board to determine whether the Plan should be continued, modified or terminated. The Board may amend the terms of the Plan or suspend or terminate the Plan at any time without prior notice to the Trust’s shareholders if it deems such actions to be in the best interest of the Trust or its shareholders. The amendment or termination of the Plan could have an adverse effect on the market price of the Trust’s shares.
About BlackRock
BlackRock’s purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, our clients turn to us for the solutions they need when planning for their most important goals. As of September 30, 2020, the firm managed approximately $7.81 trillion in assets on behalf of investors worldwide. For additional information on BlackRock, please visit www.blackrock.com/corporate | Twitter: @blackrock | LinkedIn: www.linkedin.com/company/blackrock
Forward-Looking Statements
This press release, and other statements that BlackRock or the Trust may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to the Trust or BlackRock’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
BlackRock cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and BlackRock assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
With respect to the Trust, the following factors, among others, could cause actual events to differ materially from forward-looking statements or historical performance: (1) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets, which could result in changes in demand for the Trust or in the Trust’s net asset value; (2) the relative and absolute investment performance of the Trust and its investments; (3) the impact of increased competition; (4) the unfavorable resolution of any legal proceedings; (5) the extent and timing of any distributions or share repurchases; (6) the impact, extent and timing of technological changes; (7) the impact of legislative and regulatory actions and reforms, including the Dodd-Frank Wall Street Reform and Consumer Protection Act, and regulatory, supervisory or enforcement actions of government agencies relating to the Trust or BlackRock, as applicable; (8) terrorist activities, international hostilities and natural disasters, which may adversely affect the general economy, domestic and local financial and capital markets, specific industries or BlackRock; (9) BlackRock’s ability to attract and retain highly talented professionals; (10) the impact of BlackRock electing to provide support to its products from time to time; and (11) the impact of problems at other financial institutions or the failure or negative performance of products at other financial institutions.
Annual and Semi-Annual Reports and other regulatory filings of the Trust with the Securities and Exchange Commission (“SEC”) are accessible on the SEC's website at www.sec.gov www.blackrock.com
