BlackRock Closed-End Funds Reveal Estimated Sources of Distributions (June 30, 2025)

BlackRock has disclosed estimated sources of distributions for a broad group of its closed-end funds, detailing per-share distributions paid on June 30, 2025, along with the expected mix of income, capital gains, and return of capital for the current fiscal year. The releases cover a wide array of funds, including energy-focused, technology and science-focused, international and domestic dividend strategies, and broader asset-allocation vehicles. The communications explain how each fund’s distribution plans are structured, how distributions are sourced from net income and gains, and how the funds may include a return of capital when income is insufficient to sustain a level payout. They also outline the performance context, tax reporting considerations, and governance around these plans. Investors should carefully review the detailed allocations and the accompanying notes to understand the potential implications for income and principal over time, as well as the regulatory disclosures guiding these distributions.

Table of Contents

Comprehensive overview of the distribution framework for BlackRock closed-end funds

The disclosed materials center on two principal distribution frameworks used by BlackRock’s closed-end funds. A large group of funds operates under a managed distribution plan designed to sustain a steady monthly distribution profile that combines income, capital gains, and/or return of capital as necessary to maintain stability in monthly payouts. A subset of funds adopts a plan that bases monthly distributions on fixed annual rates, expressed as a percentage of the fund’s 12-month rolling average daily net asset value (NAV), with specific percentages set for certain funds. In particular, BMEZ, BSTZ, BTX, BCAT, and ECAT deploy a monthly distribution model anchored to a fixed annual rate: 12% for BMEZ, BSTZ, and BTX, and 20% for BCAT and ECAT, calculated against the 12-month rolling average NAV determined five business days prior to each distribution declaration date. For all funds, the fixed monthly distribution rates are subject to change at the sole discretion of each Fund’s Board of Directors or Trustees. This governance flexibility ensures that distributions align with fund performance, market conditions, and regulatory requirements, while seeking to preserve a level monthly distribution to shareholders over time.

The funds’ Plan(s) require that distributions be made from all available net income, consistent with each fund’s investment objectives and in accordance with the Internal Revenue Code of 1986, as amended. When monthly income from net investment income and short-term capital gains is insufficient to sustain a level distribution, the funds will distribute long-term capital gains and/or return of capital to maintain the targeted payout level. This framework aims to balance income distribution with capital preservation, recognizing that return of capital is not a measure of yield and should not be mistaken for investment performance. The plans also emphasize that the actual fixed amounts or distribution rates may change at any time at the Board’s discretion, highlighting the dynamic governance that underpins the distribution strategy.

In addition, the funds provide estimated sources of distributions for the current fiscal year and as of the reporting date, broken down into net income, net realized short-term gains, net realized long-term gains, and return of capital. This breakdown helps investors evaluate how much of each monthly and annual distribution originates from income versus capital gains and return of capital, which in turn informs tax planning and NAV trajectories. The communications also note that the estimates are regulatory requirements and may differ from the actual tax reporting amounts, which depend on the funds’ investment experiences through the remainder of the year and applicable tax regulations. Investors are reminded that Form 1099-DIV will eventually illustrate the tax reporting treatment for these distributions.

The communications include performance context, providing a snapshot of five-year total return relative to NAV, the annualized current distribution rate as a percentage of NAV, the cumulative total return for the fiscal year through a given date, and the cumulative fiscal year distributions as a percentage of NAV. The performance disclosures serve to help investors gauge how distributions relate to investment performance and NAV dynamics over time, while acknowledging that past performance does not guarantee future results. The funds also include cautionary statements about not drawing conclusions about investment performance solely from current distributions or from the terms of a Plan, reinforcing the importance of comprehensive due diligence, ongoing monitoring, and an understanding of the distribution framework’s interaction with market volatility and portfolio construction.

Financial governance remains central to these arrangements. Each Plan is subject to ongoing Board review to determine whether a Plan should continue, be modified, or terminated. The Board may amend or suspend a Plan at any time without prior notice to shareholders if deemed in the best interest of the fund or its shareholders. The potential amendment or termination of a Plan can influence the market price of the fund’s shares, underscoring the need for investors to consider the plans’ long-term implications, including the potential for future adjustments in the distribution mix or level.

As part of BlackRock’s broader suite of credit and equity-focused funds, the company emphasizes transparency in the distribution process, including the recognition that distributions may exceed current income and gains, thereby creating a return of capital scenario. While a return of capital can occur in the short term, it does not necessarily reflect the fund’s investment performance and should not be conflated with yield or income. The funds stress that distributions are estimates and will depend on investment performance during the remainder of the fiscal year.

Finally, the communications remind investors that fund updates, performance data, and other material information will be updated on the funds’ pages on BlackRock’s official site on a regular monthly basis. The language makes clear that site updates are intended to provide public access to fund information and are not a substitution for the press release itself. The documentation also incorporates forward-looking statements and risk disclosures, emphasizing that the outlook is subject to numerous assumptions and uncertainties and that actual results could differ materially from expectations.

Fund-by-fund breakdown: distributions paid on June 30, 2025 and estimated sources of distributions as of June 30, 2025

The following sections present the per-share distribution paid on June 30, 2025 for each fund in the first group, followed by the estimated allocations of distributions as of June 30, 2025. For funds that adopted a fixed monthly rate under the 12%/20% annual-rate model, the distribution figure represents the declared per-share amount for that date, and the allocations reflect the plan-driven composition of that amount into net income, gains, and return of capital. The allocation data include a breakdown into net income, net realized short-term gains, net realized long-term gains, and return of capital, expressed in dollars per share and percentage terms where provided. Where a fund’s line includes a “1” preceding the explanatory text, the relevant note indicates the fund’s general statement about the plan’s distribution estimates and their implications.

BCX — BlackRock Resources & Commodities Strategy Trust

Pay Date: June 30, 2025
Per Share Distribution: $0.069700