fact_sheet_-_build_america_bond_trust.pdf

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  • 7/30/2019 Fact_Sheet_-_Build_America_Bond_Trust.pdf

    1/2

    Fact Shee

    First Quarter 2012

    Build America Bond Trust

    NYSE: BBN

    www.blackrock.com

    Fund Inception Date

    8/27/2010

    Fund Overview

    The Trust's primary investment objective is toseek high current income, with a secondaryobjective of capital appreciation. The Trust seeksto achieve its investment objectives by investingprimarily in a portfolio of taxable municipalsecurities known as "Build America Bonds" .

    Fund Data (3/30/12)

    Net Asset Value (NAV) Per Share $22.48Share Price $21.45Premium/Discount -4.58%Current Yield 7.37%

    Source: BlackRock. Current yield is calculated by dividing the lastdistribution per share (annualized) by market price.

    Top 5 Sectors (3/30/12) *

    1. Tax-Backed 45.5%2. Utility 31.6%3. Transportation 12.8%4. Education 6.5%5. Housing 1.9%

    * Based on Managed Assets

    Top 5 States (3/30/12) *

    1. California 22.3%2. Illinois 14.7%3. New Jersey 10.3%4. New York 9.6%5. Texas 6.5%

    * Based on Managed Assets

    Growth of Hypothetical $10,000 Investment Over Time (8/27/10 - 3/30/12)

    2,500

    5,000

    7,500

    10,000

    $12,500

    8/10 1/11 5/11 9/11 1/12

    $12,239

    The chart illustrates the growth of a hypothetical $10,000 investment in the fund's common shares based onmarket price beginning on the date noted with all distributions reinvested. Ending value as of 3/30/12.Performance does not reflect sales charges or fees that may be incurred. Past performance is no guaranteeof future results.

    Source: BlackRock

    Market price and NAV history 8/27/10 - 3/30/12

    18

    20

    22

    $24

    8/10 1/11 5/11 9/11 1/12

    Market PriceNAV

    Source: BlackRock

    Premium-discount 8/27/10 - 3/30/12

    -20

    -10

    0

    10%

    8/10 1/11 5/11 9/11 1/12

    Premium-discount graph illustrates the amount by which the market price trades above or below net assetvalue.

    Source: BlackRock

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    Distribution History (3/30/12)

    Ex-Date Dividend Per Share

    3/13/2012 $0.1318002/13/2012 $0.12980012/20/2011 * $0.12980012/12/2011 $0.12980011/11/2011 $0.12980010/12/2011 $0.1298009/13/2011 $0.1183008/11/2011 $0.118300

    7/13/2011 $0.1183006/13/2011 $0.1183005/12/2011 $0.118300

    * Represents the January monthly distribution.

    Portfolio Characteristics (3/30/12)

    Net Assets $1.3 billionManaged Assets * $1.8 billionTotal Leverage $547.9 millionPercent Leveraged 29.9%Average Coupon 6.33%Option-Adjusted Duration 13.92 yearsDividend Frequency Monthly

    * Managed Assets means the total assets of the Trust (includingany assets attributable to leverage) minus the sum of accruedliabilities (other than debt representing financial leverage).

    Percent Leveraged represents the amount of total borrowings inrelation to total Managed Assets.

    Credit Quality (3/30/12) *

    AAA 2.8%AA 56.8%A 35.7%BBB 3.6%BB & Below 1.1%

    * Based on Managed Assets. Please see "Important information onthe fund" below.

    Portfolio Breakdown (3/30/12) *

    Maturities of Greater Than 4 Years 100.0%Percent in Insured Municipal Bonds

    3.9%

    * Based on Managed Assets The insurance coverage of a municipal bond depends upon the

    claim-paying ability and financial resources of the insuranceprovider.

    Average annual total returns (3/30/12)*

    0

    10

    20

    30

    40%

    32.32%

    1 Year

    32.59%

    12.20%

    Since Inception(8/2010)

    18.95%

    Market PriceNAV

    Source: BlackRock. * Returns for less than one year are not annualized.

    Performance data quoted represents past performance of common shares and does not guaranteefuture results. Investment return and principal value of an investment will fluctuate so that an investor'sshares may be worth more or less than the original cost. The fund's market price and net asset valuewill fluctuate with market conditions. All return data assumes reinvestment of all distributions. Currentperformance may be lower or higher than the performance data quoted. For more information, pleaserefer to www.blackrock.com.

    BBN-FS-0312

    2012 BlackRock, Inc. All Rights Reserved.

    Prepared by BlackRock Investments, LLC, member FINRA

    BlackRock is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners.

    Important information on the fund: All information and data, including portfolio holdings and performance characteristics, is as of 3/30/12, unless otherwisenoted, and is subject to change. Note that closed-end funds often trade at a discount to NAV but may trade at a premium. There may be less informationavailable on the financial condition of issuers of taxable municipal securities than for public corporations. The market for taxable municipal bonds may be lessliquid than for other bonds. The Trust may utilize leveraging to seek to enhance the yield and net asset value of its common stock, as described in the Trust'sprospectus. These objectives will not necessarily be achieved in all interest rate environments. The use of leverage involves risk, including the potential for higher

    volatility and greater declines of the Trust's net asset value, fluctuations of dividends and other distributions paid by the Trust and the market price of the Trust'scommon stock, among others. BlackRock receives credit quality ratings on underlying securities of the fund from the three major reporting agencies - S&P,Moody's and Fitch. The credit quality breakdown is provided by BlackRock by taking the median rating of the three agencies when all three agencies rate asecurity. BlackRock will use the lower of the two ratings if only two agencies rate a security, and BlackRock will use one rating if that is all that is provided.Securities that are unrated by all three agencies are reflected as such in the breakdown. Below investment-grade is represented by a rating of BB and Below.BlackRock converts all ratings to the equivalent S&P major rating category for purposes of the category shown. Ratings and portfolio credit quality may changeover time. Unrated securities do not necessarily indicate low quality. The fund itself has not been rated by an independent rating agency.