BLW

BlackRock Ltd. Duration Income Trust is a closed-end management investment company that seeks to provide high current income and capital appreciation with a duration target of less than five years. Managed by BlackRock Advisors, LLC, the fund invests primarily in intermediate-term investment-grade and below-investment-grade debt securities. The "Limited Duration" designation indicates the fund maintains shorter duration positioning compared to longer-duration bond funds, providing reduced sensitivity to interest rate changes while still capturing attractive yields from credit and term premiums. The fund's portfolio includes a diversified mix of corporate bonds, bank loans, mortgage-backed securities, asset-backed securities, high-yield bonds, and other fixed income instruments with the duration target kept below five years. This intermediate duration positioning balances income generation with interest rate risk management, making the fund less volatile than long-duration bond funds during periods of rising interest rates. The investment team actively manages credit exposure, sector allocations, and security selection to optimize risk-adjusted returns while maintaining the duration target. As a closed-end fund, BlackRock Ltd. Duration Income Trust issues a fixed number of shares that trade on exchanges, often at premiums or discounts to net asset value (NAV). The fund employs leverage through borrowings or other financial instruments to potentially enhance returns and income generation, though leverage increases risk. The trust provides monthly distributions to shareholders, sourced from interest income, capital gains, and potentially return of capital. The fund serves income-focused investors seeking attractive yields with moderate interest rate sensitivity through a professionally managed, diversified credit portfolio. The limited duration approach provides downside protection compared to longer-duration strategies when interest rates rise, while still offering meaningful yield pickup compared to short-duration or money market investments. Performance is influenced by credit spreads, interest rate movements, default rates, and overall bond market conditions.