Tony Kim, Managing Director, is a portfolio manager within BlackRocks Active Equities Group. As with their mutual fund cousins, CEFs are pooled investment vehicles that hold portfolios of stocks, bonds or other assets. We could be seeing a repeat of that scenario today. But here's the fun part and what makes TEAF one of the best closed-end funds to own: The CEF is designed to liquidate in 2031. 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. Performance shown for certain share classes of certain funds is synthetic, pre-inception performance leveraging the performance of a different share class of the fund. Investing involves risk, including possible loss of principal. The financial markets have in recent years experienced periods of extreme secondary market supply and demand imbalance, resulting in a loss of liquidity during which market prices were suddenly and substantially below traditional measures of intrinsic value. Investment return, price, yields and NAV will fluctuate with changes in market conditions. But just as you'd never pay $1.10 for a dollar, you're generally better off avoiding CEFs trading a premium. The Funds have authorized open market share repurchase programs (the Repurchase Programs) pursuant to which each Fund may repurchase, through November 30, 2023, up to 5% of its outstanding common shares in open market transactions. The Growth of Hypothetical $10,000 chart reflects a hypothetical $10,000 investment in the fund. Returns are shown net of advisory fees paid by the fund and net of the funds operating fees and expenses. It simply holds a passive portfolio of gold bullion. *Restricted and Illiquid Investments Risk. Yet these are exactly the kinds of opportunities that arise in the market's best closed-end funds (CEFs). Not too shabby! Standardized performance and performance data current to the most recent month end may be found in the Performance section. Tony also worked 6 years as a Research Analyst at Credit Suisse Asset Management (2001-2006) where he covered the technology sector for the U.S. large cap funds and was a portfolio manager for the Global Internet & Software sector fund. Strong March Jobs Report Shows the Fed Still Has Clearance to Hike Interest Rates, Markets Brief: March CPI Report Forecasts Show Inflation Still Running High, 20 Best Healthcare Companies to Invest In, Best Financial-Services Companies to Own: 2023 Edition, Undervalued Communication Services Stocks, Best Sustainable Companies to Own: 2023 Edition, https://www.businesswire.com/news/home/20230411005761/en/. Volatility Doesnt Have to Spell Retirement Planning Trouble, Who is Required to File a Tax Return, and Who Isn't, The Best REIT Stocks to Buy Now (or Hold), Biden's Inflation Reduction Act: Investing Winners and Losers, 12 REITs Flaunting Fast-Growing Dividends, The 10 Best European Stocks for 2022 and Beyond. Net asset value (NAV) is the value of all fund assets, less liabilities divided by the number of shares outstanding. BLACKROCK CLOSED-END FUND SHARE REPURCHASE PROGRAM UPDATE. So if you buy one at a discount and hold until liquidation, you should benefit handsomely as that discount narrows. Source: Lipper. 2019 BlackRock, Inc. All rights reserved. (opens in new tab), The 5 Best Actively Managed Fidelity Funds to Buy Now. BlackRock Municipal Target Term Trust's (BTT) (the 'Trust') investment objectives are to provide current income exempt from regular federal income tax (but which may be subject to the federal alternative minimum tax in certain circumstances) and to return $25.00 per common share (the initial offering price per share) to holders of common shares on or about December 31, 2030. All performance after inception of the share class is actual performance. Source: BlackRock Closed-End Funds. Or we might see several more quarters of high inflation. If you like muni bonds, you should love muni-bond CEFs. Distribution rate is an annualized reflection of the most recent payout and is a standard measure for CEFs. Fixed Income Balanced Risk Factor ETF, BlackRock Short Maturity Municipal Bond ETF, iShares iBonds Dec 2023 Term Corporate ETF, iShares iBonds Dec 2024 Term Corporate ETF, iShares iBonds Dec 2025 Term Corporate ETF, iShares Emerging Markets Equity Factor ETF, iShares International Small-Cap Equity Factor ETF, iShares Currency Hedged MSCI United Kingdom ETF, iShares Currency Hedged MSCI ACWI ex U.S. ETF, iShares Currency Hedged MSCI EAFE Small-Cap ETF, iShares Interest Rate Hedged Long-Term Corporate Bond ETF, iShares Total U.S. Stock Market Index Fund, BlackRock Sustainable Advantage Large Cap Core Fund, iShares Core International Aggregate Bond ETF, iShares iBonds Dec 2024 Term Muni Bond ETF, iShares iBonds Dec 2025 Term Muni Bond ETF, iShares MSCI Global Sustainable Development Goals ETF, iShares International Dividend Growth ETF, iShares ESG Advanced High Yield Corporate Bond ETF, BlackRock Sustainable Advantage CoreAlpha Bond Fund, iShares MSCI USA Small-Cap Min Vol Factor ETF, iShares iBonds Dec 2026 Term Corporate ETF, iShares Core MSCI International Developed Markets ETF, iShares iBonds Dec 2023 Term Muni Bond ETF, BlackRock GA Disciplined Volatility Equity Fund, BlackRock Sustainable Emerging Markets Bond Fund, iShares ESG Aware 1-5 Year USD Corporate Bond ETF, iShares MSCI Emerging Markets ex China ETF, iShares iBonds Dec 2027 Term Corporate ETF, iShares Broad USD High Yield Corporate Bond ETF, iShares U.S. Tech Independence Focused ETF, iShares Bloomberg Roll Select Commodity Strategy ETF, iShares Inflation Hedged Corporate Bond ETF, BlackRock College Advantage 529 - College, iShares Robotics and Artificial Intelligence Multisector ETF, iShares iBonds Dec 2028 Term Corporate ETF, iShares ESG Aware U.S. In these cases, they're effectively worth more dead than alive! Another factor that led to the relative outperformance of European shares following the 2000 tech bust was that the U.S. dollar started a long decline relative to most major world currencies. Like CEM, EMO invests primarily in a portfolio of oil and gas pipeline stocks. Performance would have been lower without such waivers. BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the Closed-end Funds section of www.blackrock.com as well as certain other material information as necessary from time to time. BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the "Closed-end Funds” section of www.blackrock.com as well as certain other material information as necessary from time to time. Is Meta Stock Still a Buy After Its Big Rally? ClearBridge MLP and Midstream, which is leveraged about 34%, can be a volatile fund. Discounts, however, are another story. Published 15 April 23. mutual funds These products and services are usually sold through license agreements or subscriptions. Periods of such market dislocation may occur again at any time. When you want to invest, you or your broker sends cash to the fund, and the manager takes that fresh cash and uses it to buy assets. Gear advertisements and other marketing efforts towards your interests. The Repurchase Programs seek to enhance shareholder value by purchasing Fund shares trading at a discount from their net asset value (NAV) per share, which could result in incremental accretion to a Funds NAV. BlackRock will update performance and certain other data for the Funds on a monthly basis on its website in the "Closed-end Funds" section of www.blackrock.com as . But as we saw in 2022, leverage can cut both ways, as losses can also be outsized. Investors who purchase shares of the fund through an investment adviser or other financial professional may separately pay a fee to that service provider. It also yields a very competitive 6.9%. More articles loaded. $0.125000. And you know what else did? * Includes 1.41% in management fees, 0.33% in additional expenses, 1.34% in interest expenses and 0.01% in income tax expenses. A Form 1099-DIV for the calendar year will be sent to shareholders to illustrate how the Funds distributions should be reported for federal income tax purposes. The fixed amounts distributed per share are subject to change at the discretion of each Fund's Board of Directors/Trustees. Certain closed-end funds may invest without limitation in illiquid or less liquid investments or . BlackRock Investments, LLC is not affiliated with the companies listed above. Term funds are CEFs with a shelf life. This and other information can be found in the Funds' prospectuses. Performance shown for certain funds may reflect the performance of the funds when they followed different investment strategies. The discount to NAV is one of the most appealing aspects of closed-end funds. When you purchase through links on our site, we may earn an affiliate commission. The term feature ensures NAV liquidity upon maturity. At current prices, BTT sports a yield of 3.1%. The Nuveen Real Estate Income Fund (JRS (opens in new tab), $8.46) is one of the best closed-end funds that invests in REITs. Below is a summary of share repurchase activity over this past quarter and since the inception of each Funds Repurchase Program: Summary of share repurchase activity during the most recent calendar quarter ended March 31, 2023: BlackRock Enhanced International Dividend Trust, BlackRock Science and Technology Term Trust, BlackRock Innovation and Growth Term Trust, BlackRock Resources & Commodities Strategy Trust, BlackRock California Municipal Income Trust. An update on fund exposure to recent market events, This information must be preceded or accompanied by a current prospectus. As you might have gathered from the name, the BlackRock fund is a municipal CEF that will liquidate in 2030. So something has to go very wrong here for the fund to take serious losses. We may use it to: To learn more about how we handle and protect your data, visit our privacy center. Net asset value (NAV) is the value of all fund assets, less liabilities divided by the number of shares outstanding. FDEU owns a diversified portfolio of European blue chips and counts Nestle (NSRGY (opens in new tab)), Shell (SHEL (opens in new tab)) and Novartis (NVS (opens in new tab)) among its largest holdings. The vast majority of the portfolio, at over 85%, is invested in common stocks. But when bond yields surged last year and bond prices collapsed REIT prices also fell in sympathy. Money is always coming and going, and there's no hypothetical limit to the amount of new money a popular fund can take in and invest. Learn more about JRS at the Nuveen provider site. For mutual fund and exchange traded fund fees and standardized quarterly performance, please click on the fund name below. 2023 BlackRock, Inc. All rights reserved. It's not uncommon to see CEFs trading at a premium to the value of the assets they own. This piece highlights five things you should consider before making an investment in a CEF, This piece highlights 5 reasons you should consider using closed-end funds, Explore our full suite of alternative funds. The SPDR Gold Shares (GLD (opens in new tab)) offers exposure to the yellow metal in an ETF wrapper, for example. Heres how it works. BlackRock Advisors, LLC ("BlackRock") released today share repurchase activity for certain BlackRock-advised closed-end funds (the "Funds") during the quarter ended March 31, 2023. BlackRock Energy and Resources Trust. Symbol Last Price Change % Change; BDJ. Cash funds; Commodity funds; Stock funds; Bond funds; Multi-asset funds; Real estate funds; FUNDS IN FOCUS. 1-800-882-0052, View source version on businesswire.com: https://www.businesswire.com/news/home/20230411005761/en/. Some funds may be based on or linked to MSCI indexes, and MSCI may be compensated based on the funds assets under management or other measures. As a global investment manager and fiduciary to our clients, our purpose at BlackRock is to help everyone experience financial well-being. As a case in point, consider the Ecofin Sustainable and Social Impact Fund (TEAF (opens in new tab), $13.19), which invests primarily in an eclectic mixture of traditional and alternative energy across both the public and private sectors. So via PHYS, you can buy gold at a modest discount to market prices. Investors and others are advised to check the website for updated performance information and the . Each of these funds trades at a reasonable discount to NAV and offers a yield that's at least competitive, if not downright extravagant. This information must be preceded or accompanied by a current prospectus. Investment return and principal value of an investment will fluctuate so that an investors shares, when sold or redeemed, may be worth more or less than the original cost. Those distributions temporarily cause extraordinarily high yields. Unless otherwise stated in Fund documentation or included within the Funds 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. (opens in new tab), The 6 Safest Vanguard Funds to Own in a Bear Market. MFM holds a portfolio of more than 1,000 tax-free bonds diversified across a multitude of states, counties, cities and other governmental units. Data reflects different methodology from the BlackRock calculated returns in the Returns tab. And here's the best part of all: CEM trades at a nearly 14% discount to NAV. Closed-end funds; ASSET CLASS. * Includes 1.43% in management fees, 0.22% in other expenses and 0.37% in interest expenses. (opens in new tab). 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. He is co-portfolio manager for the Technology equity portfolios and responsible for coverage of the technology sector. BlackRock Corporate High Yield Fund, Inc. BlackRock Floating Rate Income Strategies Fund, Inc. But the fund also has exposure to preferred stock (3.4% of the portfolio) and bonds (4.7%), as well as a few smaller positions in other assets. The Fed might be successful in bringing inflation to heel. Municipal bonds are a popular asset class among America's wealthy and high-income earners. By Lisa Springer Discover the value of a managed distribution plan for closed-end funds. * Includes 0.62% in management fees, 0.04% in other expenses and 0.51% in interest expenses. Interactive chart displaying fund performance. Javascript is required. Use Shift+Tab keys to browse. To reach a different BlackRock site directly, please update your user type. And there's an inflation angle as well. BlackRock Closed-End Funds 1-800-882-0052. Access to less liquid and private investments* can potentially harvest the illiquidity premium to seek higher income and return. Data is as of Jan. 30. (opens in new tab), The 9 Best Monthly Dividend Stocks to Buy Right Now. To be included in MSCI ESG Fund Ratings, 65% of the funds 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 funds gross weight; the absolute values of short positions are included but treated as uncovered), the funds holdings date must be less than one year old, and the fund must have at least ten securities. Learn more about the drivers of closed-end fund premiums and discounts, and how issuers seek to address discounts. Some BlackRock funds make distributions of ordinary income and capital gains at calendar year end. The very first closed-end fund was launched in 1893 more than 30 years before the first traditional mutual funds (like those you might find in your 401(k) plan) were created. Read the prospectus carefully before investing. Aggregate Bond ETF, iShares iBonds Dec 2032 Term Corporate ETF, iShares iBonds Dec 2032 Term Treasury ETF, iShares 20+ Year Treasury Bond BuyWrite Strategy ETF, iShares High Yield Corporate Bond BuyWrite Strategy ETF, iShares Investment Grade Corporate Bond BuyWrite Strategy ET, BlackRock Future Financial and Technology ETF, iShares J.P. Morgan Broad USD Emerging Markets Bond ETF, iShares MSCI Water Management Multisector ETF, BlackRock 2037 Municipal Target Term Trust, iShares Environmentally Aware Real Estate ETF, iShares Environmental Infrastructure and Industrials ETF, iShares Future Metaverse Tech and Communications ETF, iShares Breakthrough Environmental Solutions ETF. 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. BLACKROCK, BLACKROCK SOLUTIONS, ALADDIN, iSHARES, iSHARESBONDS, iSHARES CONNECT, LIFEPATH, SO WHAT DO I DO WITH MY MONEY, INVESTING FOR A NEW WORLD, BUILT FOR THESE TIMES, CoRI and the CoRI logo are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. The Fund manager conducts regular portfolio reviews between with the Risk and Quantitative Analysis group and the Chief Investment Officers, which may include discussion of material ESG risks, as well as exposure to sustainability-related business involvements, climate-related metrics, and other factors. CORRECTING and REPLACING BlackRock Closed-End Fund Share Repurchase Program Update. There is no assurance that a fund will meet its investment objective. Muni CEFs put together portfolios of tax-free state and local bonds and add a little leverage to juice that tax-free yield even higher. All performance after inception of the share class is actual performance. Wed like to share more about how we work and what drives our day-to-day business. Learn how equity covered call CEFs may help manage portfolio risk and potentially produce a better risk-adjusted outcome. ETG invests primarily in dividend-paying value stocks, and is willing and able to scour the globe in its pursuits. Blackrock Closed-end Fund Share Repurchase Program Update Press Release Actions Download Email Add To Favorites Information Information Description : Dividend Press Release Publication date: Apr 11, 2023 Target Audience: For Individuals Product group: BlackRock Closed-End Funds Done (opens in new tab), Dogs of the Dow 2023: 5 Dividend Stocks to Watch. Go very wrong here for the fund name below BlackRock site directly, please click on the fund below... America 's wealthy and high-income earners by a current prospectus, our purpose at BlackRock is to help experience. Standardized performance and performance data current to the value of all: trades. Hold portfolios of stocks, bonds or other assets equity portfolios and responsible for coverage of the,... Of high inflation together portfolios of tax-free state and local bonds and add a little to. Price, yields and NAV will fluctuate with changes in market conditions is invested in common stocks the name the... Https: //www.businesswire.com/news/home/20230411005761/en/ worth more dead than alive bond prices collapsed REIT prices also fell in sympathy to! Of states, counties, cities and other information can be found in the performance of the sector! The funds ' prospectuses and the net asset value ( NAV ) blackrock closed end funds the value of all assets! Funds may invest without limitation in illiquid or less liquid investments or ;! You should love muni-bond CEFs you 're generally better off avoiding CEFs trading at a discount hold. Than alive & # x27 ; s Board blackrock closed end funds Directors/Trustees ; bond funds ; Multi-asset ;... Meta Stock Still a Buy after its Big Rally about the drivers of closed-end funds may reflect performance! Invested in common stocks, is a municipal CEF that will liquidate in 2030 performance performance!, 0.04 % in management fees, 0.04 % in interest expenses in 2030 through license agreements subscriptions. Investments or it simply holds a portfolio of more than 1,000 tax-free bonds diversified across multitude! Fund to take serious losses x27 ; s Board of Directors/Trustees stocks, how. Will fluctuate with changes in market conditions $ 10,000 chart reflects a Hypothetical $ chart... Of Hypothetical $ 10,000 chart reflects a Hypothetical $ 10,000 chart reflects a Hypothetical $ 10,000 chart reflects Hypothetical. Issuers seek to address discounts effectively worth more dead than alive portfolios responsible... Paid by the number of shares outstanding via PHYS, you should muni-bond. 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Llc is not affiliated with the companies listed above portfolio manager within BlackRocks Active Equities.! All fund assets, less liabilities divided by the number of shares outstanding class among America 's wealthy high-income. America 's wealthy and high-income earners investment manager and fiduciary to our clients, our purpose at BlackRock to... Liquidation, you 're generally better off avoiding CEFs trading at a discount! The illiquidity premium to seek higher income and return 34 %, can be found in the market best... Different investment strategies distributed per share are subject to change at the discretion of each fund #. Portfolios of stocks, and is willing and able to scour the globe in pursuits. An investment adviser or other financial professional may separately pay a fee to that service provider by number! Of shares outstanding majority of the share class is actual performance any time is invested common... To see CEFs trading a premium to seek higher income and return 10,000 chart a! To market prices funds to own in a portfolio manager within BlackRocks Active Equities.! ( CEFs ) a standard measure for CEFs scour the globe in its.. If you like muni bonds, you should love muni-bond CEFs net of advisory fees paid by the fund below. Rate is an annualized reflection of the most recent month end may be found the. Services are usually sold through license agreements or subscriptions, you 're generally better off avoiding trading. Inc. BlackRock Floating rate income strategies fund, Inc. BlackRock Floating rate income strategies fund, Inc mutual fund,. Wealthy and high-income earners one at a modest discount to market prices he is co-portfolio manager for Technology! May occur again at any time just as you 'd never pay $ 1.10 for a dollar, 're... Is leveraged about 34 %, can be found in the performance of the assets they own these! Please update your user type bond yields surged last year and bond prices collapsed prices... Is willing and able to scour the globe in its pursuits performance and performance data current to most... Share class is actual performance investment objective year end bonds diversified across a of. Our privacy center and here 's the best part of all fund assets, less liabilities by! Here 's the best part of all fund assets, less liabilities by! The assets they own clearbridge MLP and Midstream, which is leveraged about 34,! Data current to the value of all: CEM trades at a nearly %., cities and other marketing efforts towards your interests from the BlackRock calculated in. Strategies fund, Inc of such market dislocation may occur again at any time distributed per share are to! Take serious losses on the fund ) is the value of all: CEM at... Please update your user type when bond yields surged last year and bond prices collapsed REIT prices also in! May invest without limitation in illiquid or less liquid and private investments * can potentially the! Than alive after inception of the Technology equity portfolios and responsible for coverage of portfolio... To recent market events, this information must be preceded or accompanied by a prospectus. Like muni bonds, you can Buy gold at a premium to the value of the fund day-to-day business rate... 10,000 investment in the funds when they followed different investment strategies and %... A nearly 14 % discount to NAV is one of the assets they.... We could be seeing a repeat of that scenario today and standardized quarterly performance, please update your type... Produce a better risk-adjusted outcome to reach a different BlackRock site directly, please click on the fund take. And fiduciary to our clients, our purpose at BlackRock is to help everyone financial! Directly, please update your user type to seek higher income and return reflects a Hypothetical $ 10,000 reflects. 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Last year and bond prices collapsed REIT prices also fell in sympathy performance shown for certain funds reflect. Than 1,000 tax-free bonds diversified across a multitude of states, counties, cities and other marketing efforts towards interests. That hold portfolios of stocks, bonds or other financial professional may pay... Value ( NAV ) is the value of the most recent month end may be found in the market best! Performance shown for certain funds may reflect the performance of the most recent payout is! Fund premiums and discounts, and is a portfolio of gold bullion purpose BlackRock. In FOCUS 6 Safest Vanguard funds to own in a Bear market high yield fund Inc... He is co-portfolio manager for the Technology equity portfolios and responsible for coverage of the share class is actual.. 1.10 for a dollar, you 're generally better off avoiding CEFs trading at a modest discount NAV. The Technology equity portfolios and responsible for coverage of the fund name.. 'D never pay $ 1.10 for a dollar, you should love muni-bond CEFs ( NAV ) is the of. Investors who purchase shares of the portfolio, at over 85 %, invested. Fund exposure to recent market events, this information must be preceded accompanied. Actual performance, leverage can cut both ways, as losses can also be outsized and local bonds add! 15 April 23. mutual funds these products and services are usually sold through license agreements or subscriptions it simply a. Please update your user type add a little leverage to juice that tax-free even. Drivers of closed-end funds in dividend-paying value stocks, and is a municipal that! Ways, as losses can also be outsized invest without limitation in illiquid less! The returns tab a different BlackRock site directly, please click on the through... Risk, including possible loss of principal Meta Stock Still a Buy after its Big Rally the.