1. BlackRock funds announced discount management program results. 2. BCAT's shares traded at a 4.77% discount to NAV. 3. Funds will not conduct tender offers as discounts are below thresholds. 4. Programs aim to enhance shareholder value and liquidity. 5. Market effects of the programs remain uncertain.
The lack of required tender offers indicates stable pricing but no immediate upside. Historical instances show similar discount programs often result in transient movements rather than sustained appreciation.
While the news importantly describes BCAT's discount management initiatives, the actual market impact appears muted. Stakeholder sentiment may shift, but tangible impacts on share price seem limited.
Discount management programs typically influence market sentiment initially but have limited long-term effects. Previous fund initiatives have seen quick reactions, but often return to prior trends.
The BlackRock closed-end funds (the "Funds") listed below announced today the results of the Measurement Period (as defined below) under their previously announced discount management programs (the "Programs").
Under the Programs, each Fund intends to offer to repurchase a minimum of 5% of its outstanding common shares if the Fund's common shares trade at an average daily discount to net asset value ("NAV") of greater than 10% during the measurement period that commenced on January 1, 2025 and ended on September 30, 2025 (the "Measurement Period"). The average daily premium/(discount) to NAV for the Funds during the Measurement Period are summarized below.
Measurement Period Results for the Funds in the Program
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Fund Name |
Ticker |
Average Daily Premium/(Discount) for the Measurement Period ended September 30, 2025 |
BlackRock Capital Allocation Term Trust |
BCAT |
(4.77%) |
BlackRock ESG Capital Allocation Term Trust |
ECAT |
(2.89%) |
BlackRock Science and Technology Term Trust |
BSTZ |
(7.82%) |
BlackRock Enhanced Global Dividend Trust |
BOE |
(8.63%) |
BlackRock Energy and Resources Trust |
BGR |
(5.33%) |
BlackRock Enhanced International Dividend Trust |
BGY |
(7.65%) |
BlackRock Enhanced Large Cap Core Fund, Inc. |
CII |
(6.09%) |
BlackRock Enhanced Equity Dividend Trust |
BDJ |
(5.91%) |
BlackRock Science and Technology Trust |
BST |
(5.16%) |
BlackRock Health Sciences Trust |
BME |
(7.29%) |
BlackRock Resources & Commodities Strategy Trust |
BCX |
(7.91%) |
BlackRock Utilities, Infrastructure, & Power Opportunities Trust |
BUI |
+1.87% |
Based on the average daily discounts during the Measurement Period, tender offers are not required under the Programs and therefore the Funds will not be conducting tender offers.
The Programs are part of each Fund's ongoing effort to manage their premium/(discount) to NAV, enhance long-term shareholder value and provide liquidity to the market for their common shareholders. There can be no assurances as to the effect, if any, that the Program will have on the market for each Fund's shares or the discount at which each Fund's shares may trade relative to their NAV.
IMPORTANT NOTICE
This press release is for informational purposes only and is not a recommendation, an offer to purchase or a solicitation of an offer to sell any securities of the Funds and the above statements are not intended to constitute an offer to participate in any tender offer. Any offer to purchase Fund common shares will be made pursuant to an offer on Schedule TO. COMMON SHAREHOLDERS ARE URGED TO READ THE TENDER OFFER MATERIALS, INCLUDING THE OFFER TO PURCHASE AND ANY SOLICITATION/RECOMMENDATION STATEMENT REGARDING THE TENDER OFFER, AS THEY MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, WHEN THEY ARE FILED AND BECOME AVAILABLE, BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF COMMON SHARES SHOULD CONSIDER BEFORE MAKING ANY DECISION REGARDING TENDERING THEIR SHARES. Common shareholders may obtain a free copy of any of these statements and other documents filed with the SEC at the website maintained by the SEC at www.sec.gov or by directing such requests to the applicable Fund.
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Availability of Fund Updates
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. Investors and others are advised to check the website for updated performance information and the release of other material information about the Funds. This reference to BlackRock's website is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock's website in this release.
Forward-Looking Statements
This press release, and other statements that BlackRock or a Fund may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to a Funds' 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 Funds, 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 Funds or in a Funds' net asset value; (2) the relative and absolute investment performance of a Fund 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, and regulatory, supervisory or enforcement actions of government agencies relating to a Fund or BlackRock, as applicable; (8) terrorist activities, international hostilities, health epidemics and/or pandemics 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 Funds with the Securities and Exchange Commission ("SEC") are accessible on the SEC's website at www.sec.gov and on BlackRock's website at www.blackrock.com, and may discuss these or other factors that affect the Funds. The information contained on BlackRock's website is not a part of this press release.
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