BlackRock Launches High Yield Municipal Interval Fund with 5.75% Tax-Exempt Yield
BlackRock Advisors, LLC announced today the launch of BlackRock Municipal Credit Alpha Portfolio, Inc. ("Interval Fund" or "Fund"), expanding its suite of interval funds providing alternative investment solutions for retail wealth clients.
The Fund seeks to provide attractive after-tax total return, through income and capital appreciation, by investing in municipal securities. The Fund's Institutional Share Class ("MUNEX") is launching with a 5.75% annualized rate on the initial NAV, payable monthly. MUNEX currently has approximately $565 million in managed assets, ranking as one of the largest municipal interval funds.
BlackRock is an industry leader with $182 billion in municipal bond investments, supported by a team of 59 investment professionals. The interval fund structure provides flexibility for BlackRock's experienced team to invest in more bespoke areas of the high yield market, including special situations, while taking larger concentrations in high conviction names compared to traditional high yield municipal funds.
"The Fund's interval structure provides long-term capital, allowing my team to take advantage of bond market volatility and inefficiency. This enables MUNEX to invest in traditional high yield assets, while also utilizing our deep credit expertise to identify less liquid opportunities and special situations. Furthermore, the interval structure allows us to purchase assets when others are compelled to sell, potentially securing higher yields and greater overall returns." ? Ryan McDonald, Portfolio Manager for MUNEX.
"In our view, high yield municipal bonds offer alternative return drivers that complement traditional fixed income portfolios. We think that the interval fund structure is the best way to take advantage of inefficiencies in the high yield market, from both a yield and total return perspective. Our expertise in this market, particularly in the event-driven space, provides investors a unique opportunity for high tax-efficient yield and superior total return." ? Patrick Haskell, Head of BlackRock's Municipal Bond Group.
The below table highlights the various share classes available to investors.
|
Ticker |
BlackRock Municipal Credit Alpha Portfolio, Inc., Institutional Class |
MUNEX |
BlackRock Municipal Credit Alpha Portfolio, Inc., Class A |
XMUNX |
BlackRock Municipal Credit Alpha Portfolio, Inc., Class U |
MUNUX |
Important Notice
This press release is for informational purposes only and shall not constitute a recommendation, an offer to purchase or a solicitation of an offer to sell any common shares of the Fund.
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