April 2021

Closed-End Funds vs

Mutual Funds

Structure and Performance

USWAM0421U/S-1623235-1/9

Closed-End vs. Mutual Funds

Share Treatment

Closed-End Funds

Mutual Funds

Exchange Listed

Yes

No

Liquidity

Intraday (shares trade on an exchange)

Market Close

Return Focus

Primarily Current Income / Total Return

Current Income/Total Return

Total shares are determined by initial demand

Shares Offered

during the initial public offering("IPO").

Continuously offered.

Shares can be bought and sold in secondary

market post IPO.

Shares Redeemed

No. Shares are bought and sold in the

Yes. Once a day, at the close of business.

secondary market.1

Based on market supply and demand. Priced

Shares Priced

at either a premium or discount to net asset

Price is set daily by NAV.

value ("NAV").

Use of Leverage

Prevalent among CEFs

Can use leverage, but employed much less

than in CEFs

Share Classes

Not typical in CEF structure

Multiple share classes with different expense

structures

Illiquid Security Exposure

Yes

Limited

1. Certain closed-end funds may make periodic tender offers for shares.

USWAM0421U/S-1623235-2/92

Performance of Closed-End Funds vs. Mutual Funds

3-Year Annualized Total Return of CEFs & Mutual Funds Lipper Classifications (as of 3/31/2021)

+53

bps

12.00

-141

-638

-154

+147

bps

bps

bps

bps

10.94

+60

+149

bps

bps

10.00

9.40

8.00

6.37

6.24

6.40

5.80

6.16

6.00

4.96

4.77

4.67

4.00

3.54

3.01

3.02

2.00

0.00

-2.00

-4.00

-3.36

-6.00

Bank Loan

Emerging Market

Emerging Market

Equity Income

General Bond

High Yield

Municipal

Equity

Debt

CEF (NAV)

Mutual Fund

Source: Lipper LANA. Data as of 3/31/21. Returns show the median NAV return for CEFs and the median NAV return for Mutual Funds. Past performance is no indication of future results. Performance shown is the average for the funds in the category; individual fund performance could have been positive or negative. CEFs represented by the following Lipper categories, Municipal Debt represented by General & Insured Municipal Funds (Levered), High Yield represented by High Yield Funds (Levered), Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Options Arbitrage/Opt Strategies Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Mutual Funds represented by the following categories, Municipal Debt represented by General & Insured Municipal Funds , High Yield represented by High Yield Funds, Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Equity Income Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Any funds not incepted in this time period will not be included in return numbers.

USWAM0421U/S-1623235-3/9

3

Performance of Closed-End Funds vs. Mutual Funds

5-Year Annualized Total Return of CEFs & Mutual Funds Lipper Classifications (as of 3/31/2021)

+167

bps

14.00

-265

-245

-187

bps

bps

bps

+459

+215

+115

bps

bps

bps

12.00

11.88

11.46

9.59

10.00

9.23

9.38

8.96

8.00

6.81

6.00

5.72

4.90

4.79

4.51

4.05

4.00

2.45

3.36

2.00

0.00

Bank Loan

Emerging Market

Emerging Market

Equity Income

General Bond

High Yield

Municipal

Equity

Debt

CEF (NAV)

Mutual Fund

Source: Lipper LANA. Data as of 3/31/21. Returns show the median NAV return for CEFs and the median NAV return for Mutual Funds. Past performance is no indication of future results. Performance shown is the average for the funds in the category; individual fund performance could have been positive or negative. CEFs represented by the following Lipper categories, Municipal Debt represented by General & Insured Municipal Funds (Levered), High Yield represented by High Yield Funds (Levered), Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Options Arbitrage/Opt Strategies Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Mutual Funds represented by the following categories, Municipal Debt represented by General & Insured Municipal Funds , High Yield represented by High Yield Funds, Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Equity Income Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Any funds not incepted in this time period will not be included in return numbers.

USWAM0421U/S-1623235-4/9

4

Performance of Closed-End Funds vs. Mutual Funds

10-Year Annualized Total Return of CEFs & Mutual Funds Lipper Classifications (as of 3/31/2021)

+168

+53

bps

bps

12.00

-284

-128

bps

bps

+253

+160

+277

bps

bps

bps

10.10

10.00

8.82

8.00

7.84

7.45

6.95

6.00

5.07

5.31

5.35

4.68

4.32

4.28

4.00

3.39

3.79

2.00

1.44

0.00

Bank Loan

Emerging Market

Emerging Market

Equity Income

General Bond

High Yield

Municipal

Equity

Debt

CEF (NAV)

Mutual Fund

Source: Lipper LANA. Data as of 3/31/21. Returns show the median NAV return for CEFs and the median NAV return for Mutual Funds. Past performance is no indication of future results. Performance shown is the average for the funds in the category; individual fund performance could have been positive or negative. CEFs represented by the following Lipper categories, Municipal Debt represented by General & Insured Municipal Funds (Levered), High Yield represented by High Yield Funds (Levered), Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Options Arbitrage/Opt Strategies Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Mutual Funds represented by the following categories, Municipal Debt represented by General & Insured Municipal Funds , High Yield represented by High Yield Funds, Bank Loans represented by Loan Participation Funds, General Bond represented by General Bond Funds, Equity Income represented by Equity Income Funds, Emerging Market Equity represented by Emerging Market Funds, Emerging Market Debt (Hard) represented by Emerging Market Debt (Hard) Category. Any funds not incepted in this time period will not be included in return numbers.

USWAM0421U/S-1623235-5/9

5

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BlackRock Capital Allocation Trust published this content on 30 April 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 30 April 2021 06:11:00 UTC.