Blackrock ESG Capital Allocation Trust (ECAT) is a closed-end management investment company that was launched by BlackRock in June 2020. The fund seeks to provide total return by investing in a globally diversified portfolio of equity securities and fixed-income instruments that are aligned with certain environmental, social, and governance (ESG) criteria.
ECAT invests in securities that are expected to be attractive from a risk-return standpoint and also meet certain ESG criteria. The fund may invest in companies across a wide range of market capitalizations and sectors, including consumer discretionary, energy, financials, healthcare, industrials, information technology, materials, real estate, telecommunication services, and utilities. It may also invest in U.S. and foreign issuers, as well as emerging market issuers.
ECAT’s investment process is based on BlackRock’s proprietary Aladdin technology platform, which integrates risk analytics, portfolio management tools, and trading systems to help the fund’s portfolio managers make investment decisions. The fund’s portfolio is actively managed by BlackRock’s Global Allocation Team, which seeks to optimize the portfolio’s risk-return profile and ESG characteristics.
As of December 31, 2021, ECAT had total assets of approximately $203 million and held investments in 128 different securities. The fund’s top holdings included Microsoft Corp., Procter & Gamble Co., Nestle SA, Taiwan Semiconductor Manufacturing Co., and Visa Inc.
Investing in ECAT involves risks, including the risk that the fund’s investments may not achieve their ESG objectives, the risk of fluctuations in market value, and the risk that the fund’s share price will fluctuate based on its net asset value. Investors should carefully consider the investment objectives, risks, charges, and expenses of the fund before investing.
Overall, ECAT is a fund that seeks to provide investors with exposure to a globally diversified portfolio of equity securities and fixed-income instruments that are aligned with certain ESG criteria. As with any investment, investors should carefully consider the risks and potential rewards before investing in the fund.
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