BlackRock Capital Allocation Term Trust (NYSE: BCAT) is a closed-end management investment company that commenced operations in late 2020. Structured as a term trust with a predetermined termination date, BCAT seeks to provide total return through a balanced allocation across equity securities, taxable fixed-income instruments and derivative positions. The trust’s shares trade on the New York Stock Exchange under the symbol BCAT, offering investors access to a multi-asset strategy in a listed structure.
The trust’s investment portfolio is diversified across U.S. and non-U.S. equity markets, including common stocks, convertible securities and depositary receipts. To complement its equity exposure, BCAT allocates capital to investment-grade and high-yield corporate bonds, government and agency securities, and securitized debt. The use of futures, options and other derivative instruments enables the portfolio managers to manage risk, adjust asset allocation dynamically and potentially enhance income generation.
Although domiciled in the United States, BlackRock Capital Allocation Term Trust pursues global investment opportunities. The trust’s mandate allows up to 35% of its total assets to be invested in emerging-market securities, while also maintaining flexibility to overweight or underweight developed markets based on relative valuation and macroeconomic themes. This international scope aims to capture growth prospects across regions and sectors, supporting the trust’s long-term return objectives.
BCAT is advised by BlackRock Advisors, LLC, part of BlackRock, Inc., one of the world’s largest asset managers. The trust’s portfolio management team leverages BlackRock’s research platform, risk-management systems and proprietary quantitative tools. Under the broader leadership of BlackRock’s executive team, BCAT’s managers integrate top-down macro views with bottom-up security selection to deliver a cohesive, actively managed solution for investors seeking diversified exposure in a single vehicle.
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