Investment Q&A

Q: I asked something about BCAT a little while ago and I now have another question. It appears that the monthly distributions are issued as a return of capital; can you pls confirm if that is the case. And secondly, is a return of capital by a US entity still a return of capital for Canadian tax purposes, or does CRA treat it as interest? I know tax is not your forte, but any info you can provide would be great. Thanks for your excellent service.

Q: Blackrock sent a tender offer today: "Option 1: Tender Consideration (USD funds) (Subject to Proration) - To receive 98% of the NAV per share of Blackrock Capital Allocation Term Trust Common Share tendered on pricing date". Or do nothing and hold.

1. The current NAV shows on a 'net search as $17.45; would you expect that to change much from now until the "pricing date"?
2. What is the date for the "pricing date"?
3. Why would Blackrock want to do this?
4. What would you do if you owned shares? Current share price is $16.36;
5. Where can I find the offering circular?

6. Also, my 2 service providers show the yield at 11.5%; the profile on the 5i Market Data shows it at 21%. What do you think it is?

Many thanks for your excellent service.

Q: What is your current opinion of BCAT? It has been around for approximately 2.5 years since the last question you’ve had and seems to be growing well despite its incongruously large upcoming dividend.
Thanks,
David

Q: I came across this name the other day and it piqued my interest. In particular the yield. Would you recommend this company as part of a dividend portfolio and does it have any growth potential besides its yield?
Thank you as always for your great service it is much appreciated.