BlackRock Build America Bond Trust to change name, investment policy

By Toni Weeks

San Luis Obispo, Calif., June 12 – The board of trustees of BlackRock Build America Bond Trust announced changes to the name and investment policies of the trust, according to a press release from BlackRock Advisors, LLC, the fund’s New York-based investment adviser.

The trust will continue to pursue its primary investment objective of seeking high current income with a secondary objective of capital appreciation, but it will no longer be required to invest 80% of its managed assets in Build America Bonds (BABs) but will instead be required to invest at least 80% of its managed assets in taxable municipal securities, which may include Build America Bonds, the release said.

In connection with the investment policy change, the trust’s name will become BlackRock Taxable Municipal Bond Trust. The trust’s ticker symbol (NYSE: BBN) will remain the same.

According to the release, the 2010 prospectus of the trust’s initial public offering contained a provision that allowed, if for any 24-month period there were no new issuances of BABs or other analogous taxable municipal securities, the board to evaluate the trust to broaden its focus.

Given that there have been no new issuances of BABs, the board has opted to change the investment policy and believes that broadening and diversifying the trust’s portfolio will keep it flexible enough to take advantage of relative value opportunities in the taxable municipal market.

The changes will become effective Aug. 25.

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