BlackRock Credit Allocation Income Trust

Frequently Asked Questions About BTZ

What does BTZ invest in?

BlackRock Credit Allocation Income Trust is a closed ended balanced mutual fund launched by BlackRock, Inc. The fund is co-managed by BlackRock Advisors, LLC and BlackRock (Singapore) Limited. It invests in the fixed income markets across the globe. For the fixed income portion of the portfolio, the fund primarily invests in securities with an average credit quality of BBB by Standard & Poor’s Corporation. It invests in investment grade corporate bonds, high yield bonds, bank loans, preferred securities or convertible bonds or derivatives. The fund was formerly known as BlackRock Preferred & Equity Advantage Trust. BlackRock Credit Allocation Income Trust was formed on December 27, 2006 and is domiciled in the United States.

What is the expense ratio of BTZ?

BlackRock Credit Allocation Income Trust (BTZ) charges an expense ratio of 3.38%. This is the annual fee deducted from fund assets to cover management and operations.

What is BTZ's dividend yield?

BTZ's trailing-twelve-month yield is 10.63%, calculated from the sum of dividends over the past year divided by the current price.

What is the duration of BTZ?

Effective duration measures BTZ's sensitivity to interest-rate changes: a duration of 6 means a 1% rate move shifts NAV by roughly 6% in the opposite direction. BTZ's current duration is published on the fund's factsheet on the issuer's website.

What is the credit quality of BTZ?

BTZ's credit quality breakdown (the share of holdings rated AAA through CCC and below) is published on the fund's factsheet. Higher-quality (investment-grade) funds yield less but carry less default risk than high-yield / junk bond funds.

What is the yield to maturity of BTZ?

Yield to maturity (YTM) is the total return you'd earn from BTZ if every bond in the portfolio is held to maturity at the current price. BTZ's YTM is published on the fund's factsheet on the issuer's website. It differs from the trailing-12-month yield because YTM reflects current bond prices rather than historical income paid.