BlackRock Multi-Asset Strategies Income Suite · 2020-01-17 · BlackRock Multi-Asset Strategies...

BlackRock Multi-Asset Strategies Income Suite Rethink your income strategy

For financial professional use only. Not to be shown or distributed to clients.MKTGM1119U-1016100-1/38

Rethink your income strategyBlackRock Multi-Asset Strategies (MAS) Income Suite

BDHIXDynamic High Income Fund

BIICXMulti-Asset Income Fund

BLDIXManaged Income Fund

Income Models

Today’s income challenge

BlackRock Multi-Asset Strategies Income Suite


Yields remain below historical averagesYields are low across the income landscape, with less than 25% of fixed income assets yielding over 4%.

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.Source: BlackRock Investment Institute, Barclays and Thomson Reuters, 9/30/2019. The bars show market capitalization weights of assets with an average annual yield over 4% in a select universe that represents about 70% of the Bloomberg Barclays Multiverse Bond Index. U.S. Treasury represented by the Bloomberg Barclays U.S. Treasury index. Euro Core is based on the Bloomberg Barclays French and German government debt indexes. U.S. Agencies represented by Bloomberg Barclays U.S. Aggregate Agencies index. U.S. Municipal represented by Bloomberg Barclays Municipal Bond index. Euro Periphery is an average of the Bloomberg Barclays government debt indexes for Italy, Spain and Ireland. U.S. MBS represented by the Bloomberg Barclays U.S. Mortgage Backed Securities index. Global Credit represented by the Bloomberg Barclays Global Aggregate Corporate index. U.S. CMBS represented by the Bloomberg Barclays Investment Grade CMBS index. Emerging Market combines the Bloomberg Barclays EM hard and local currency debt indexes. Global High Yield represented by the Bloomberg Barclays Global High Yield index.

TODAY’S INCOME CHALLENGE

For financial professional use only. Not to be shown or distributed to clients.

Percent of fixed income markets yielding over 4%

U.S. Treasury

Euro Core

U.S. Agencies

U.S. Municipal

Euro Periphery

U.S. MBS

Global Credit

U.S. CMBS

Emerging Market

Global High Yield

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

100%

25%

50%

75%

0%

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BlackRock Multi-Asset Income Fund

(BIICX)

2.0% 2.1% 2.4% 3.3% 4.0%6.4%

3.8%5.6% 5.6% 6.5% 6.8%

4.9%

-9.2%

-4.8%-2.6% -3.5%

-9.3%

-4.6%

-11.0%

-5.9%-1.9%

-4.6%

-21.6%

-4.0%

High income assets can be volatileConcentrated positions come with downside risk. Relative value can change quickly across asset classes.

Source: Morningstar and Bloomberg, yields as of 9/30/19. Data is since start of Fund’s first full calendar year (1/1/2012) after the fund’s strategy changed (11/28/11) through 9/30/19. For illustrative purposes only. Data represents past performance and is no guarantee of future results. Multi-Asset Income Fund yield represented by average 30-Day SEC Yield for Instl. Share Class (Subsidized). Index yields are shown for illustrative purposes only and do not predict or depict the yield of any BlackRock fund. Yields for the various asset class indices have material differences including investment objectives, liquidity, safety, guarantees of insurance, fluctuation of principal or return and tax features. Fixed income yields represented by, equity yields by 12 month dividend yield while MLPs' yield consists primarily of return of capital which reduces the investors adjusted cost basis, the composition of which varies based on income, expenses, depreciation and tax elections made by the MLyield-to-worstP based on each investor’s share of the MLP’s income, expenses, gains and losses. Yield data based on month-end numbers. Average annual drawdown is the average of the largest declines in value from peak to trough during each of the following periods: 2012, 2013, 2014, 2015, 2016, 2017, 2018 and 2019 YTD. Additional annual drawdowns are added following an equity drawdown greater than 5% or at the close of a calendar year depending on which occurs first. Represented Indices: Treasury bonds, Bloomberg Barclays U.S. 7-10 Year Treasury Bond Index; Core bonds, Bloomberg Barclays U.S. Aggregate Bond Index; Inv. Grade Debt, Bloomberg Barclays U.S. Corporate Bond Index; High yield bonds, Bloomberg Barclays HY 2% Issuer Capped Index; EM debt, JP Morgan Emerging Market Bond Index Global; Bank loans, S&P Leveraged Loan Index; U.S. equities, S&P 500 Index; Dividend Equities, MSCI World High Dividend Yield Index; Preferred stock, S&P U.S. Preferred Stock Index; U.S. REITs, FTSE NAREIT Equity REIT Index; MLPs, Alerian MLP Index. MLP yield consists primarily of return of capital, which reduces the investor’s adjusted cost basis.

TODAY’S INCOME CHALLENGE


Traditional sources of income

Non-traditional sources of income

Average yield

Averageannual

drawdown

S&P 500 U.S. Treasuries

Core Bonds

Inv.Grade Debt

Dividend Equities

High Yield

U.S. REITS

Bank Loans

EM Debt Preferred Stocks

MLPs

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Income Models




BlackRock MAS Income Team

As of 9/30/2019. Subject to change.

BLACKROCK MAS INCOME SUITE

Alex Shingler, CFAPortfolio Manager

Michael FredericksLead Portfolio Manager

Justin Christofel, CFA, CAIAPortfolio Manager


$33B in global income strategies

Equity income Fixed income Non-traditional income sources

Asia high yieldSingapore

Asia dividendsHong Kong

Global dividend equityLondon

European dividend equityLondon

Global fixed incomeLondon

EM dividend equityLondon

US high yield & bank loansNew York

Fundamental fixed incomeNew York

Mortgage TeamNew York

Preferred stockNew York

US dividend equityPrinceton

MLPsNew York

Covered call writing BostonQuantitative

fixed incomeSan Francisco

European high yieldLondon

Top down asset allocation... …leveraging BlackRock’s global expertise bottom up.

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An income platform for all investors

Source: BlackRock and Morningstar as of 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns are determined monthly and are subject to change. BlackRock Managed Income Fund (I) rated against 192 Allocation 15-30% Equity Funds. BlackRock Multi-Asset Income Fund (I) rated against 492 Allocation – 30% to 50% Equity Funds. BlackRock Dynamic High Income Fund (I) rated against 395 World Allocation Funds. Please note – prior to November 2018, Multi-Asset Income was categorized in Tactical Allocation Category. Morningstar Ratings are for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. The ratings for respective periods as well as the full methodology are included in “Important notes” section.



Managed Income Multi-Asset Income Dynamic High Income

Conservative approach seeking consistent income

BENCHMARK

30% S&P 500 /70% Barclays Agg

Core solutionbalancing yield & volatility

BENCHMARK50% MSCI World /50% Barclays Agg

INST: BLDIX A: BLDAX C: BMICX INST: BIICX A: BAICX C: BCICX INST: BDHIX A: BDHAX C: BDHCX

Seeks high income from non-traditional sources

BENCHMARK70% MSCI World /30% Barclays Agg

Overall Morningstar Rating™ based on Institutional shares Overall Morningstar Rating™ based on Institutional shares Overall Morningstar Rating™ based on Institutional shares

Strategies also available in model portfolios

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Lowest expense quartile2

Managed Income 0.49

Multi-Asset Income 0.58

Dynamic High Income 0.77

Expenses represented as Net, including investment related expenses for Inst. shares.

An income platform for all investorsBlackRock offers a series of portfolios to help meet the risk tolerance and income needs of different investors.

Total expenses as stated in the funds’ most recent prospectus are: 0.89% for Managed Income Fund (Inst.); 0.70% for Multi-Asset Income Fund (Inst.); and 1.02% for Dynamic High Income Fund (Inst.).1 Source: BlackRock, Morningstar as of 9/30/19. For illustration purposes only. Past performance is no guarantee of future results. *Risk represented by the 1-year standard deviation based on monthly returns of the funds and benchmarks. Yields for Managed Income, Multi-Asset Income and Dynamic High Income are represented by trailing 12-month distribution yields as of 9/30/19. Benchmark yields represented by yield-to-worst for fixed income and by 12 month dividend yield for equity. Allocations for the risk benchmarks are as follows: 30% S&P 500 & 70% Bloomberg Barclays U.S. Aggregate Bond Index for Managed Income, 50% MSCI World & 50% Bloomberg Barclays U.S. Aggregate Bond Index for Multi-Asset Income, and 70% MSCI World & 30% Bloomberg Barclays U.S. Aggregate Bond Index for Dynamic High Income.

2 Source: Morningstar. As of 9/30/19. Current fee rankings may vary based on recent and frequent prospectus updates to the funds within the respective Morningstar categories. Analysis based only on institutional shares of BlackRock Managed Income Fund, BlackRock Multi-Asset Income Fund and BlackRock Dynamic High Income Fund vs. institutional shares of active funds within their respective Morningstar categories. Expenses are based on the funds’ most recent prospectus net expense ratios, excluding investment dividend expense, interest expense, and certain other fund expenses. Morningstar category net expense ratio also excludes these expenses. Includes active open-end mutual funds only, and excludes index funds. Institutional shares may not be available to all retail investors. Performance for different share classes may vary. Morningstar has awarded the Fund a Silver Medal. Fewer than 10% of US open-end funds hold medalist ratings (Effective 04/24/19). The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics (See more information on page 30-31).



Managed Income Fund Multi-Asset Income Fund Dynamic High Income Fund

Consistent income Core income High income

Low HighVolatility

Yie

ld1

7%

6

5

4

3

2

1

00 3 6 9 12

Managed Income4.08% 12 Mo. Dist. Yield

3.12% Risk

Multi-Asset Income5.13% 12 Mo. Dist. Yield

6.30% Risk

Dynamic High Income6.11% 12 Mo. Dist. Yield

11.44% Risk

30/70 Risk benchmark2.16% Yield5.83% Risk



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Results that are hard to beat

Source: BlackRock. Sample of 768 advisor income models collected by the BlackRock Portfolio Solutions team as of December 31, 2018. Advisor portfolio yields represented by blended trailing 12-month distributions yields as of 12/31/18. Yields for Multi-Asset Income, Dynamic High Income and Managed Income are also represented by trailing 12-month distribution yields on the Instl. share classes as of 12/31/18. *Ex-ante risk is an estimate of a portfolio’s annualized standard deviation based on its exposure to 2,200 risk factors in BlackRock’s proprietary risk model using 10-years of monthly risk factor data with a 36-month half-life. Risk factors are objective, measurable characteristics of a security that historically have had explanatory power of volatility. Exposures to these risk factors are aggregated, with correlations taken into account, to arrive at an estimate of total standard deviation at the portfolio level.


Dynamic High Income7.39% Yield8.16% Risk

Multi-Asset Income5.51% Yield4.35% RiskManaged Income

4.02% Yield1.89% Risk


Sample of 768 advisor income models analyzed by BlackRock Portfolio Solutions

-

1

2

3

4

5

6

7

8

9

- 2 4 6 8 10 12 14

Dis

trib

utio

n yi

eld

(%)

Volatility

MKTGM1119U-1016100-9/38





Income Models





Source: Morningstar as of 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns,are determined monthly and are subject to change. BlackRock Multi-Asset Income Fund (I) rated against 497 Allocation – 30% to 50% Equity Funds. Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. Effective date: 4/24/19. Please note – prior to November 2018, Multi-Asset Income was categorized as Tactical Allocation. Morningstar Rating is for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. More information available in “Important Notes” section.

1 Source: Morningstar and Bloomberg, as of 9/30/19. Portfolio takeover 11/28/11. Average yield represented by the SEC Yield of Instl. Share Class (BIICX). Yield data based on month end numbers. Yield on MAI is represented by 30-Day SEC Yield for Instl. 30-Day SEC Yield (subsidized) – The calculation is based on a 30-day period ending on the last day of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. If the fund expenses have waivers, the subsidized yield is based on the net expenses. 30-Day SEC Yield (unsubsidized) – This calculation is based on total expenses of the fund. Share Class (Subsidized).

2 Measured by monthly standardized deviation since portfolio takeover 11/28/11. The benchmark is composed of 50% MSCI World /50% Barclays Aggregate Index. BIICX has a 4.16% standard deviation and the benchmark has a 8.72% standard deviation.

Investing involves risk. Information is subject to change. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

INST: BIICX • A: BDHAX • C: BDHCX


About the fund Portfolio characteristics

Allocates across countries and asset classesGenerated return from over 15 asset classes in 50 countries

Less risk than the benchmark28% less risk than 50/50 benchmark since PM inception2

History of attractive yield4.94% average yield since PM inception1

Proven record of attractive income and total return

Focused on managing volatility & risk mitigation

A go-anywhere, income solution

Portfolio characteristics as of 9/30/2019.

BIICX

MKTGM1119U-1016100-11/38

A risk-first approach to income


1 Source: Morningstar and Bloomberg, as of 9/30/19. The fund changed to this strategy on 11/28/11. Investing involves risk. Information is subject to change. 30-Day Volatility measures the short-term standard deviation of the fund’s returns. Higher deviationrepresents higher risk. Volatility of the 50/50 benchmark incorporates the rolling 5-year correlation of global equities and core bonds. Global equity represented by the MSCI World Index. Core bonds represented by the Bloomberg Barclays U.S. Aggregate Index.

2 Average yield on MAI is represented by the average 30-Day SEC Yield for Instl. Share Class (Subsidized). Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index.

BLACKROCK MULTI-ASSET INCOME FUND (BIICX)

0%

3%

6%

Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

Focused on managing risk1…

…with a track record of competitive and consistent yield2

Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-190%

4%

8%

12%


30 day volatility

Average 30-day volatility

4.99%50/50 Benchmark

3.65%BLK Multi-Asset Income

Historically less risk than a 50/50 stock/bond portfolio

Average yield


2.48%50/50 Benchmark

MKTGM1119U-1016100-12/38

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18

A tactical unconstrained approachBIICX seeks the best income opportunities across geographies and asset classes, quickly adapting the portfolio to changing market conditions.1


1 Source: BlackRock. As of 9/30/19. Not a recommended allocation. Subject to change. Asset class exposure shown as a percent of market value. Values may not equal 100% due to rounding.


Asset Class Current High Low Bank Loans/CLOs 13% 13% 0% EM Debt 6% 7% 1% Non-Agency/CMBS 9% 16% 0% Preferred Stock 8% 12% 5% Covered Calls 12% 21% 0% Global REITs 3% 4% 0% MLPs/Energy Infra. 4% 7% 1% U.S. Equity 5% 11% 3% Intl Equity 5% 16% 5% EM Equity 3% 8% 1% High Yield 23% 55% 12% Inv. Grade Bonds 5% 20% 0% Agency/Govt. 1% 8% 0% Cash 3% 11% 0% Equity Hedges -6% -13% 0% Duration Hedges 0% -21% 0% Currency Hedges -4% -6% 0%


Increased exposure to high yield bonds in beginning part of 2012 owing to low default rate

expectations and upbeat market sentiment

Significant reduction in high yield exposure during elevated market

risks in spring 2012

Increased covered calls for five straight months in fall 2014 to capitalize on

higher market volatility

Reduced global equity in the first half of 2016 amid rich valuations

and global growth uncertainty

MKTGM1119U-1016100-13/38

Protection during sell-offsThe fund has a proven record during down markets – for both stock market and bond market downturns.1

Source: Morningstar as of 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns, are determined monthly and are subject to change. BlackRock Multi-Asset Income Fund (I) rated against 497 Allocation – 30% to 50% Equity Funds. Morningstar has awarded the Fund a Silver medal. Fewer than 10% of US open-end funds hold medalist ratings. Effective date: 4/24/19. Please note – prior to November 2018, Multi-Asset Income was categorized as Tactical Allocation. Morningstar Rating is for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. More information available in “Important Notes” section.

1 Source: Morningstar and Bloomberg, as of 9/30/19. Data is since inception of the Fund’s current strategy (11/28/11). Benchmark is 50% MSCI World Index and 50% Bloomberg Barclays U.S. Aggregate Index. Fund performance based on BlackRock Multi-Asset Income Fund Inst. Share Class (BIICX). Performance data quoted represents past performance and does not guarantee future results. Performance for drawdown and rising rate periods not annualized. Average annual drawdown (top left) is the average of the largest yearly declines in value from peak to trough during the each of the calendar years 2012 – 2018 and YTD 2019. Equity sell-off events (top right) represent market, economic, or geopolitical events that lead to a period of global stock market volatility and subsequent equity market weakness where the MSCI World Index sells off more than 5%. A new equity market peak is not required for a sell-off event to occur. Rising rate periods include periods with the maximum of at least a 40 bps increase in 10-year Treasury from start date to end date within a 90 day rolling window.



10-yr treasury move (date) BlackRock Multi-Asset Income Fund

Bloomberg Barclays US Aggregate

+57 bps (12/19/11 ⎯ 3/19/12) 7.3% -0.3%+48 bps (7/24/12 ⎯ 9/14/12) 4.5% -0.7%+49 bps (11/15/12 ⎯ 3/11/13) 6.7% -0.9%+132 bps (5/1/13 ⎯ 9/5/13) -2.2% -4.9%+53 bps (10/23/13 ⎯ 12/31/13) 1.8% -1.1%+74 bps (2/2/15 ⎯ 6/9/15) 0.6% -2.3%+110 bps (8/10/16 ⎯ 12/15/16) 0.2% -4.1%+64 bps (10/13/17 ⎯ 2/15/18) 0.6% -2.2%+43 bps (8/24/18 ⎯ 11/8/18) -1.1% -1.8%

Equity Sell-off Events(date of MSCI sell-off)


50/50 Benchmark

MSCI World

European Sovereign Debt Crisis (Q2 2012) -4.0% -5.4% -12.5%U.S. Fiscal Cliff Showdown (Q4 2012) -2.1% -2.9% -6.7%U.S. Taper Tantrum (Q2 2013) -4.9% -5.4% -7.7%Energy Sell-Off (2H 2014) -3.6% -3.7% -9.2%Global Growth Fears Pt. 1 (Q2-Q3 2015) -6.1% -6.8% -13.8%Global Growth Fears Pt. 2 (Q3 2015- Q1 2016) -6.5% -6.3% -14.1%“Brexit” (Q2 2016) -2.2% -3.2% -7.4%Inflation Scare (Q1 2018) -3.8% -5.2% -9.1%Peak Cycle Concerns (Q3-Q4 2018) -6.1% -8.5% -18.1%Trade Concerns Pt. 1 (Q2 2019) -1.0% -2.0% -5.8%Trade Concerns Pt. 2 (Q3 2019) -1.1% -2.1% -5.9%

MSCI World

-10.2%

2.7%

Equity sell-offsAverage annual maximum drawdown

Bond sell-offsAverage returns during rising interest rates

50/50 Benchmark

-4.9%

BLK Multi-Asset Income

-4.1%


Bloomberg Barclays US Aggregate

-2.0%

MKTGM1119U-1016100-14/38

Average monthly income

$4,680

Total distributions taken

$439,890


1,000,000

1,100,000

1,200,000

1,300,000

1,400,000

1,500,000

1,600,000

1,700,000

Nov-11 Jun-12 Jan-13 Aug-13 Mar-14 Oct-14 May-15 Dec-15 Jul-16 Feb-17 Sep-17 Apr-18 Nov-18 Jun-19

Take income or harness the power of compounding returnsHypothetical growth with and without reinvestment1


1 Source: BlackRock and Morningstar as of 11/30/19- 9/30/19. Past performance is no guarantee of future results. Illustration based on a hypothetical $1,000,000 investment in BlackRock Multi-Asset Income Instl. (BIICX) monthly since inception 11/28/11. (LHS) = Left Hand Side. (RHS) = Right Hand Side. Average monthly income assume distributions are not reinvested.


Reinvesting distributions$1,635,749

Taking distributions$1,098,178

MKTGM1119U-1016100-15/38





Income Models




BlackRock Dynamic High Income Fund

Source: Morningstar as of 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, and 5- year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns aredetermined monthly and are subject to change. BlackRock Dynamic High Income Fund (I) rated against 395 World Allocation Funds. Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. Effective date: Apr 24, 2019. Morningstar Rating are for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. The ratings for respective periods as well as the full methodology are included in “Important notes” section.

1 Source: Morningstar and Bloomberg, as of 9/30/19. Average yield represented by the monthly distribution yield of Instl. Share Class (BDHIX). Average yield of 6.36 is since PM inception 11/3/14. Investing involves risk. Information is subject to change. The fund was ranked 43 out of 461 funds (13th percentile) for the 1Y and 29 out of 415 funds (5th percentile) for the 3Y.

INST: BDHIX A: BDHAX C: BDHCX



Diversifies your existing core income strategyExposures within BDHIX tend to have low correlation to each other and traditional fixed income and equity markets

Access to asset classes that are hard to manageExamples: covered calls, REITs, MLPs, commercial real estate

6.32% average distribution yield since PM inception1

1st quartile total return over 1 yr, 3 yr, and since inception in the World Allocation Category

Seeks high income and returns to complement traditional income assets

Taps into difficult-to access income streams

Complement to your core income portfolio


BDHIX

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Seeks high income and returns to complement traditional assets

Source: Morningstar as of 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, and 5- year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns are determined monthly and are subject to change. BlackRock Dynamic High Income Fund (I) rated against 376 World Allocation Funds. Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. Effective date: Apr 24, 2019. Morningstar Rating are for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. The ratings for respective periods as well as the full methodology are included in “Important notes” section.

Source: Morningstar as of 9/30/19. For illustration purposes only. Past performance is no guarantee of future results. Fund performance based on Dynamic High Income Inst. Share Class (BDHIX). Asset classes represented by respective Morningstar category. Yield represented by Trailing 12-month yields as SEC Yields are not reported for all Morningstar categories. Returns calculated since Dynamic High Income Inst. Share Class (BDHIX) inception on Nov. 3, 2014. Risk based on standard deviation of monthly returns over 1-year period.

BLACKROCK DYNAMIC HIGH INCOME FUND (BDHIX)

BlackRock Dynamic High Income Fund 5.79%

US Fund Bank Loan 3.20%

US Fund Emerging Markets Bond 2.53%

US Fund Energy Limited Partnership -7.32%

US Fund Global Real Estate 5.04%

US Fund Preferred Stock 5.44%

US Fund Real Estate 7.14%

US Fund World Allocation 3.08%

Attractive risk-adjusted yield… …with strong total returns

BlackRock Dynamic High Income Instl

US Fund Bank Loan

US Fund Emerging Markets Bond

US Fund Energy Limited

Partnership

US Fund Global Real Estate

US Fund Preferred Stock

US Fund Real EstateUS Fund World

Allocation

0%

2%

4%

6%

8%

0% 5% 10% 15% 20% 25%

12 m

o yi

eld

Standard deviation (1-year)


0%

2%

4%

6%

8%

Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19

High income delivered monthly

Source: Morningstar as 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, and 5- year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns are determined monthly and are subject to change. BlackRock Dynamic High Income Fund (I) rated against 376 World Allocation Funds. Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. Effective date: Apr 24, 2019. Morningstar Rating are for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. The ratings for respective periods as well as the full methodology are included in “Important notes” section.

1 Source: Morningstar, BlackRock as of 9/30/19 since inception 11/3/2014. Average yield represented by the monthly distribution yield on the fund’s institutional Share Class (BDHIX). Average yield of 6.36 is since PM inception 11/3/14. The risk benchmark is composed of 70% MSCI World/30% Barclays US Aggregate Index. Volatility represented by standard deviation based of monthly returns since the fund’s inception. Higher deviation represents higher risk. Beta is versus the S&P 500 Index and uses the primary Aladdin risk model, DLY (252 daily observations with a 40 day half life). Investing involves risk. Information is subject to change. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. Past performance is no guarantee of future results.



BDHIX annualized monthly income since inception1

More than just an income storyMany advisors utilize BDHIX seeking total return with lower beta and lower volatility.

BDHIXVolatility 8.02% Beta 0.42

70/30 BenchmarkVolatility 8.20% Beta 0.58

S&P 500Volatility 12.08% Beta 1.00

6.32% avg. distribution yield since inception

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Opportunities across non-traditional asset classesBDHIX invests primarily in markets that are difficult to access and trading strategies that are hard to replicate.1


1 Source: BlackRock as of 9/30/19. Past performance is no guarantee of future results. Not a recommendation to buy or sell any of these individual asset classes. Average yields based on monthly historical yields of asset class within the portfolio, since inception (11/3/14). These are samples of asset classes held in the portfolio. See the next slide for complete asset class breakdown as of 9/30/19.



Institutional Preferred StockFixed-to-floating coupon securities, typically issued by financial companies

Average yield

Current exposure6% 7%

Non-agency MortgagesPrivately issued securities which are back by residential properties

Average yield


Energy Infrastructure/MLPsEntities exposed to U.S. pipelines (“mid-stream”) with structurally high payouts

Average yield


Equity Covered Call WritingEarning premiums for selling some future potential stock upside

Average yield


Floating Rate Loans/CLOsCorporate loans with minimal interest rate risk due to floating rate structure

Average yield


Commercial Real EstateSingle Asset/Single Borrower properties like hotels, office buildings, and malls

Average yield


MKTGM1119U-1016100-20/38

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 May-18 Nov-18 May-19

A tactical unconstrained approachThe fund seeks the best income opportunities across geographies and asset classes, quickly adapting the portfolio to changing market conditions.


1 Source: BlackRock. As of 9/30/19. Not a recommended allocation. Subject to change. Asset class exposure shown as a percent of market value. Values may not equal 100% due to rounding.



Tactical asset allocation across non-traditional income sources1

Asset Class 9/30 High Low Bank Loans/CLOs 13% 17% 4% EM Debt 9% 11% 3% Non-Agency MBS/CMBS 7% 19% 5% Preferred Stock 7% 18% 7% Covered Calls 22% 36% 16% Global REITs 5% 9% 3% MLPs/Energy Infra. 4% 11% 0% Other Fixed Income 0% 10% 0% US Equity 1% 6% 0% Intl Equity 1% 2% 0% EM Equity 5% 6% 0% High Yield 17% 18% 2% Inv Grade Bonds 3% 6% 1% Cash 7% 15% 0%

Largest historical weighting to non-agency/CMBS in light of compelling

spread opportunities

Built up cash position to protect portfolio amidst elevated market risks

in early 2016

Increased covered calls for three straight months to capitalize on

market rebound

Reduced preferred stock amid strong performance and little

remaining upside

MKTGM1119U-1016100-21/38





Income Models




BlackRock Managed Income Fund

Source: Morningstar as of 9/30/19. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year Morningstar Rating metrics. Ratings are based on risk-adjusted total returns,are determined monthly and are subject to change. BlackRock Managed Income Fund (I) rated against 178 Allocation 15-30% Equity Funds is based on risk-adjusted total returns are determined monthly and are subject to change. Morningstar Rating is for the Institutional share class only; other classes may have different performance characteristics. Past performance is no guarantee of future results. More information available in “Important Notes” section.

1 Source: BlackRock as of 9/30/19. Subject to change. Historical distributions based on income paid since strategy inception.

2 Morningstar and Bloomberg, as of 9/30/19. Investing involves risk. Information is subject to change. 30-Day Volatility measures 30-day standard deviation based on daily returns. Higher deviation represents higher risk. Past performance is no guarantee of future results. The Blended Benchmark represents 30% S&P 500 Index/70% Bloomberg Barclays US Aggregate Index.

3 Source: Morningstar as of 9/30/19. For illustration purposes only. The illustration includes the entire universe of mutual funds. All mutual funds are represented by the instl. Share class. BLDIX has an expense ratio of 0.49% and the average cost of all mutual funds in the industry is 0.84%. The Net Expense Ratio including Investment Related Expenses are 0.49% for the Institutional share class. The Net Expense Ratio excluding Investment Related Expenses is 0.45% for the Institutional share class. Investment Related Expenses include acquired fund fees of 0.18% and interest expense (cost of borrowing securities to seek to enhance return or reduce risk) of 0.00%, and certain other expenses, if applicable. Expenses stated as of the fund’s most recent prospectus. The difference between gross and net expense ratios are due to contractual and/or voluntary waivers, if applicable. This share class has a contractual waiver with an end date of 4/30/2019 terminable upon 90 days’ notice. BlackRock may agree to voluntarily waive certain fees and expenses, which the adviser may discontinue at any time without notice. The standard deviation of BLDIX is 3.2% and the average standard deviation of all mutual funds is 13.6%.

INST: BLDIX A: BLDAX C: BMICX


Seeks attractive income with low expensesLower cost and lower risk compared to average mutual funds and ETFs3

Historically less risk than benchmark46% less risk than 30/70 benchmark since inception2

Designed to deliver consistent incomeSeeks to distribute consistent income each month with the potential to distribute accrued interest quarterly1

Seeks consistent income in all markets

Conservative, risk managed approach

Core, low-cost income solution


BLDIX


Designed to deliver consistent income


1 Source: BlackRock as of 9/30/19. Subject to change. Historical distributions based on income paid since strategy inception. Past performance is not guarantee future results.

BLACKROCK MANAGED INCOME FUND (BLDIX)


Historical dividend distributions since inception

Potential quarterly

distributions

Monthly income

BlackRock Managed

Income Fund

Savings

0.000

0.013

0.025

0.038

0.050

0.063

0.075

Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19

Special distribution Monthly dividend

Monthly incomeseeks to distribute a consistent income each month

Quarterly distributionsaccrued undistributed income is actively monitored and potential distributed quarterly

MKTGM1119U-1016100-24/38

0%10%20%30%40%50%60%70%80%90%

100%

Oct-16 Feb-17 Jun-17 Oct-17 Feb-18 Jun-18 Oct-18 Feb-19 Jun-19

Diversified sources of incomeBroad investment universe with a focus on quality stocks and bonds1


1 Source: BlackRock as of 9/30/19. Not a recommended allocation. Subject to change. Asset class exposure shown as a percent of market value. Hedging strategies and other exposures shown as a percent of notional value.


Asset allocation since inception


Traditional Equity Income

U.S. Dividend EquitiesInternational Dividend Equities

EM Dividend Equities

Min / Max0% / 30%

Typical range0% – 20%

Traditional Fixed Income

Agency MBSGovernment Bonds

High Yield BondsInvestment Grade Bonds

Min / Max0% / 100%


Nontraditional Income Sources

Bank Loans/CLOs, EM DebtNon-Agency MBS/CMBS

Preferred StockCovered Calls, Global REITs, MLPs


Bank Loans/CLOs Non-Agency Mortgages Preferred Stock CMBS EM Debt MLPs Global REITs Covered Calls EM Equity Intl Equity U.S. Equity Agency/Govt. Inv. Grade Bonds High Yield Cash

MKTGM1119U-1016100-25/38

$240,000

$250,000

$260,000

$270,000

$280,000

$290,000

Oct-16 Mar-17 Aug-17 Jan-18 Jun-18 Nov-18 Apr-19 Sep-19

$281,995

$274,044

Generating attractive total return since inception… …on a consistent, risk-adjusted basis.1


A fixed income diversifier in a lower rate world


1 Source: Morningstar as of 9/30/19. Subject to change. For illustrative purposes only. Fund data represents the institutional share class (BLDIX) since inception October 1, 2016. Investing involves risk. Information is subject to change. Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. Risk represented by standard deviation of monthly returns. Higher deviation represents higher volatility. Sharpe ratio based on monthly returns.


BlackRock Managed

Income Fund

Bloomberg Barclays US

Agg Bond Index

Since inception annual return 4.23 2.92

Since inception annual risk 2.21 3.35

Since inception Sharpe ratio 1.16 0.41

BlackRock Managed Income Fund Bloomberg Barclays US Agg Bond Index

MKTGM1119U-1016100-26/38





Income Models




BlackRock Multi-Asset Income Model PortfoliosConservative, Moderate, and Growth

Source: BlackRock as of 9/30/19. This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the Funds, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Only an investor and their financial advisor know enough about their circumstances to make an investment decision. For more information on the models, please see the "important information on Model Portfolios" at the end of this document.

BLACKROCK INCOME MODELS


About the models Types of models

GrowthSeeking income with growthRisk benchmark: 70% MSCI World/30% Barclays US Aggregate

ModerateCore income solutionRisk benchmark: 50% MSCI World/50% Barclays US Aggregate

Conservative Seeking income with capital preservationRisk benchmark: 30% MSCI World/70% Barclays US Aggregate

Designed to generate risk-efficient income and total return

Dynamic approach across global income asset classes

MF/ETF blends across three varying risk and yield profiles

Models

Strategies also available in tax aware versions

MKTGM1119U-1016100-28/38

Seek income with lower volatility than the risk benchmark

Source: BlackRock, as of 9/30/19. The model performance shown is hypothetical and for illustrative purposes only and does not represent the performance of a specific investment product or any client account. Performance does not include any overlay fee, brokerage fees, or commissions. Past performance does not guarantee future results. For standardized performance on the underlying holdings, please see the end of this document. Volatility is based on ex-ante risk, which is an estimate of a portfolios’ annualized standard deviation based on its exposure to 2,200 risk factors in BlackRock’s proprietary risk model. Risk factors are objective, measurable characteristics of a security that historically had explanatory power of volatility. Exposures to these risk factors are aggregated, with correlations taken into account, to arrive at an estimate of total standard deviation at the portfolio level. Yield levels for portfolios correspond to blend, tax-agnostic version of models and represent the yield-to-worst of the underlying model holdings. Benchmark yields represented by yield-to-worst for fixed income and by 12-month dividend yield for equity. Components of the risk benchmarks are as follows: 30% MSCI World Index & 70% Bloomberg Barclays U.S. Aggregate Bond Index for Conservative MF/ETF, 50% MSCI World Index & 50% Bloomberg Barclays U.S. Aggregate Bond Index for Moderate MF/ETF, and 70% MSCI World Index & 30% Bloomberg Barclays U.S. Aggregate Bond Index for Growth MF/ETF. It is not possible to invest directly in an index.

The Multi-Asset Income MF/ETF Models are comprised of three multi-asset model portfolios that each seek to provide yield at varying risk levels. This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the Funds, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Only an investor and their financial advisor know enough about their circumstances to make an investment decision. This information must be preceded or accompanied by a current prospectus. Investors should read and consider it carefully before investing. To view an iShares ETF Prospectus click here. To view a BlackRock mutual fund prospectus click here. For MLPA’s prospectus, click here



Conservative Model Moderate Model Growth Model

Low HighVolatility

Yie

ld1

7%

6

5

4

3

2

1

00 3 6 9

Conservative4.28% 12 Mo. Dist. Yield

2.91% Risk

Moderate4.71% 12 Mo. Dist. Yield

4.68% Risk

Growth4.66% 12 Mo. Dist. Yield

7.17% Risk




MKTGM1119U-1016100-29/38

https://www.ishares.com/us/library/financial-legal-tax

https://www.blackrock.com/us/individual/resources/regulatory-documents/mutual-funds

http://globaldocuments.morningstar.com/documentlibrary/dochistory.aspx?c=USA&cusip=37950E473

Sample portfolioBlackRock Multi-Asset Income MF/ETF Moderate Model

Source: BlackRock as of 9/30/19. The model performance shown is hypothetical and for illustrative purposes only and does not represent the performance of a specific investment product or any client account. Performance does not include any overlay fee, brokerage fees, or commissions. Past performance does not guarantee future results. This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the Funds, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Only an investor and their financial advisor know enough about their circumstances to make an investment decision. For Standardized performance of the underlying holdings, please see the end of this document. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns. If applicable, the net expense ratio has been applied to the calculation of the average weighted expense ratio. Weighted average expense ratio as of last month end. Weighted average prospectus net expense ratio of the portfolio. Source: Morningstar. This information must be preceded or accompanied by a current prospectus. Investors should read and consider it carefully before investing. To view an iShares ETF Prospectus click here. To view a BlackRock mutual fund prospectus click here. For MLPA’s prospectus, click here



US EquitiesiShares Core Dividend Growth ETF DGRO 4%iShares Core High Dividend ETF HDV 4%iShares Emerging Markets Dividend ETF DVYE 4%BlackRock Global Dividend Instl BIBDX 3%iShares Currency Hedged MSCI Eurozone ETF HEZU 3%Global X MLP ETF MLPA 2%

US Fixed Income

BlackRock Floating Rate Income Instl BFRIX 18%BlackRock High Yield Bond Instl BHYIX 11%iShares 0-5 Year High Yield Corp Bd ETF SHYG 9%iShares Preferred & Income Securities ETF PFF 7%iShares iBoxx $ Invmt Grade Corp Bd ETF LQD 6%

Multi-Asset

BlackRock Dynamic High Income BDHIX 15%

CashCash - United States Dollar CASH-USD 2%

US Fixed Income

BlackRock Strategic Income Opps Instl BSIIX 4%iShares 7-10 Year Treasury Bond ETF IEF 3%iShares MBS ETF MBB 3%iShares Short-Term Corporate Bond ETF IGSB 2%

4.75%Current yield

4.36%Average volatility

0.50%Weighted average expense ratio

Moderate Income Model

MKTGM1119U-1016100-30/38

https://www.ishares.com/us/library/financial-legal-tax

https://www.blackrock.com/us/individual/resources/regulatory-documents/mutual-funds

http://globaldocuments.morningstar.com/documentlibrary/dochistory.aspx?c=USA&cusip=37950E473

https://www.blackrock.com/us/financial-professionals/products/264623/




https://www.ishares.com/us/products/268708/ishares-currency-hedged-msci-emu-etf

https://www.globalxetfs.com/funds/mlpa/






https://www.blackrock.com/us/individual/products/270654/





BlackRock Model PortfoliosBlackRock gives you the people, marketing and technology to keep you and your clients informed.

blackrock.com/models

For illustrative purposes only. There is no guarantee that any of these services will be made available.



Visit blackrock.com/models to explore any model

Quarterly podcasts

Trade notices

Quarterly commentaries

Digital wealth

Client materials

MKTGM1119U-1016100-31/38

https://www.blackrock.com/us/financial-professionals/investments/model-portfolios

https://www.blackrock.com/us/financial-professionals/investments/model-portfolios

Standardized performance as of 9/30/19Managed Income Fund INST: BLDIX • A: BLADX • C: BMICX

Average annual total returns (%) YTD 1-year 3-year 5-year 10-year Since strategy inception (10/1/16)1

BLK Managed Income Fund (Inst) 7.62 5.43 4.23 4.27 6.04 4.23

Morningstar Allocation – 15% to 30% Equity Category Avg. 8.43 8.12 4.34 3.35 5.01 3.59

Blended Benchmark* 12.23 8.86 6.16 5.74 6.72 6.16

BLK Managed Income Fund 30-Day SEC Yield (Inst) Subsidized = 3.84% Unsubsidized = 3.59%


1 Strategy inception reflects date of current PM takeover; the fund’s annual total returns prior to 10/1/16 reflect a different investment strategy.2 Strategy inception reflects date of current PM takeover; the fund’s annual total returns prior to 11/28/11 reflect a different investment strategy.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Refer to website at www.blackrock.com to obtain performance data current to the most recent month-end. Returns include reinvestment of dividends and capital gains. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Total annual operating expenses for Managed Income Fund (Inst.) as of the most recent prospectus are 0.89% and 0.70% for Multi-Asset Income Fund (Inst.)‡The Blended Benchmark represents 30% S&P 500 Index/70% Bloomberg Barclays US Aggregate Index. †The Blended Benchmark represents 50% MSCI World/50% Bloomberg Barclays US Aggregate Index. ‡The Net Expense Ratio including Investment Related Expenses are 0.58% for the Multi-Asset Income Fund (Inst.); 0.49% for the Managed Income Fund (Inst.); and 0.77% for the Dynamic High Income Fund (Inst.). The Net Expense Ratio excluding Investment Related Expenses is 0.55% for the Multi-Asset Income Fund; 0.44% for the Managed Income Fund (Inst.); and 0.65% for Dynamic High Income Fund (Inst.). Investment Related Expenses include acquired fund fees of 0.03% for Multi-Asset Income Fund (Inst.); 0.17% for Managed Income Fund (Inst.); 0.12% for Dynamic High Income Fund (Inst.), and interest expense (cost of borrowing securities to seek to enhance return or reduce risk) of 0.00% for all funds, and certain other expenses, if applicable. Expenses stated as of the fund’s most recent prospectus. The difference between gross and net expense ratios are due to contractual and/or voluntary waivers, if applicable. Multi-Asset Income Fund (Inst.) have contractual waivers with an end date of 11/30/19; Managed Income Fund (Inst.) – 4/30/20; and Dynamic High Income Fund – 11/30/19 terminable upon 90 days’ notice. BlackRock may agree to voluntarily waive certain fees and expenses, which the adviser may discontinue at any time without notice.

MKTGM1119U-1016100-32/38

Standardized performance as of 9/30/19


1 Strategy inception reflects date of current PM takeover; the fund’s annual total returns prior to 10/1/16 reflect a different investment strategy.2 Strategy inception reflects date of current PM takeover; the fund’s annual total returns prior to 11/28/11 reflect a different investment strategy.

Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Refer to website at www.blackrock.com to obtain performance data current to the most recent month-end. Returns include reinvestment of dividends and capital gains. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Total annual operating expenses for Managed Income Fund (Inst.) as of the most recent prospectus are 0.89% and 0.70% for Multi-Asset Income Fund (Inst.)‡The Blended Benchmark represents 30% S&P 500 Index/70% Bloomberg Barclays US Aggregate Index. †The Blended Benchmark represents 50% MSCI World/50% Bloomberg Barclays US Aggregate Index. ‡The Net Expense Ratio including Investment Related Expenses are 0.58% for the Multi-Asset Income Fund (Inst.); 0.49% for the Managed Income Fund (Inst.); and 0.77% for the Dynamic High Income Fund (Inst.). The Net Expense Ratio excluding Investment Related Expenses is 0.55% for the Multi-Asset Income Fund; 0.44% for the Managed Income Fund (Inst.); and 0.65% for Dynamic High Income Fund (Inst.). Investment Related Expenses include acquired fund fees of 0.03% for Multi-Asset Income Fund (Inst.); 0.17% for Managed Income Fund (Inst.); 0.12% for Dynamic High Income Fund (Inst.), and interest expense (cost of borrowing securities to seek to enhance return or reduce risk) of 0.00% for all funds, and certain other expenses, if applicable. Expenses stated as of the fund’s most recent prospectus. The difference between gross and net expense ratios are due to contractual and/or voluntary waivers, if applicable. Multi-Asset Income Fund (Inst.) have contractual waivers with an end date of 11/30/19; Managed Income Fund (Inst.) – 4/30/20; and Dynamic High Income Fund – 11/30/19 terminable upon 90 days’ notice. BlackRock may agree to voluntarily waive certain fees and expenses, which the adviser may discontinue at any time without notice.

Multi-Asset Income Fund INST: BIICX • A: BAICX • C: BCICX

Average annual total returns (%) YTD 1-year 3-year 5-year 10-year Since strategy inception (11/28/11)2

BLK Multi-Asset Income Fund (Inst) 11.22 6.24 5.54 4.40 7.15 6.82

Morningstar Allocation – 30% to 50% Equity Category 11.20 9.38 5.88 4.15 6.34 5.52

Blended Benchmark* 13.22 6.40 6.70 5.46 6.60 7.31

BLK Multi-Asset Income Fund 30-Day SEC Yield (Inst) Subsidized = 4.69% Unsubsidized = 4.56%

MKTGM1119U-1016100-33/38

Standardized performance as of 9/30/19

30-Day SEC Yield (subsidized) – The calculation is based on a 30-day period ending on the last day of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. If the fund expenses have waivers, the subsidized yield is based on the net expenses. 30-Day SEC Yield (unsubsidized) – This calculation is based on total expenses of the fund. Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Refer to website at www.blackrock.com to obtain performance data current to the most recent month-end. Returns include reinvestment of dividends and capital gains. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Total annual operating expenses for Dynamic High Income Fund (Inst.) as of the most recent prospectus are 1.02%.‡Source: Morningstar. All data as of 9/30/19. Past performance is no guarantee of future results. This presentation should be limited to those institutions who are eligible to invest in Inst. Shares. *The Blended Benchmark represents 70% MSCI World/30% Bloomberg Barclays US Aggregate Index. ‡The Net Expense Ratio including Investment Related Expenses are 0.77% for the Institutional share class. Index performance is shown for illustrative purposes only.


Dynamic High Income INST: BDHIX • A: BDHAX • C: BDHCX

Average annual total returns (%) YTD 1-year 3-year 5-year Since strategy inception (11/3/14)*

BLK Dynamic High Income (Inst) 15.63 5.36 7.77 -- 5.79

Morningstar World Allocation Category 10.44 8.51 6.31 3.56 3.03

Blended Benchmark* 15.02 4.65 8.14 -- 6.24

30-Day SEC Yield (Inst) Subsidized = 5.74% Unsubsidized = 5.61%

MKTGM1119U-1016100-34/38

http://www.blackrock.com/

Performance details as of 9/30/19

Ticker ETF Inceptiondate

Grossexpense

Ratio

1-year returns(%)

5-year returns(%)

10-year returns(%)

Since inception(%)

NAV MktPrice NAV Mkt

price NAV Mktprice NAV Mkt

price

DGRO iShares Core Dividend Growth ETF 6/10/2014 0.08% 8.25% 8.22% 11.97% 11.95% -- -- 11.38% 11.38%

HDV iShares Core High Dividend ETF 3/29/2011 0.08% 7.59% 7.59% 8.37% 8.36% -- -- 11.32% 11.32%

BIBDX BlackRock Global Dividend Instl 4/7/2008 0.72% 4.23 -- 5.60 -- 8.51 -- -- --

DVYE iShares Emerging Markets Dividend ETF 2/23/2012 0.49% 1.88% 2.16% 1.38% 1.41% -- -- -0.01% -0.01%

HEZU iShares Currency Hedged MSCI Eurozone ETF 7/9/2014 1.09% 7.37% 7.44% 7.47% 7.46% -- -- 7.00% 7.00%

MLPA Global X MLP ETF 4/18/2012 0.45% -4.53% -4.53% -6.65% -6.66% -- -- -0.72% -0.73%

BFRIX BlackRock Floating Rate Income Instl 11/30/1989 0.67% 3.14 --- 3.77% -- 4.92 --- 4.92% --

BHYIX BlackRock High Yield Bond Instl 11/19/1998 0.61% 6.34% -- 5.07% -- 8.39% -- -- --

BSIIX BlackRock Strategic Income Opps Instl 2/05/2008 0.82% 5.47% -- 2.83% -- 4.61 -- -- --

IEF iShares 7-10 Year Treasury Bond ETF 7/22/2002 0.15% 13.87% 13.86% 3.70% 3.69% 4.30% 4.29% 4.90% 4.90%

IGIB iShares Intermediate-Term Corporate Bond ETF 1/5/2007 0.06% 13.23% 13.32% 4.04% 4.03% 4.47% 4.32% 4.72% 4.71%

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 7/22/2002 0.15% 14.96% 15.03% 5.00% 5.01% 5.84% 5.74% 5.74% 5.73%

MBB iShares MBS ETF 3/13/2007 0.08% 7.82% 7.81% 2.63% 2.62% 2.95% 2.94% 3.67% 3.67%

PFF iShares Preferred & Income Securities ETF 3/26/2007 0.46% 6.84% 7.06% 4.80% 4.83% 6.75% 6.72% 4.36% 4.36%

SHYG iShares 0-5 Year High Yield Corp Bd ETF 10/15/2013 0.30% 4.41% 4.36% 4.17% 4.18% -- -- 3.96% 4.00%

BDHIX BlackRock Dynamic High Income 11/03/2014 1.02% 5.43% -- 4.27% -- 6.04% -- 4.23 --

CASH-USD CASH - USD United States Dollar

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month endmay be obtained by visiting www.iShares.com. Shares of ETFs are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. eastern time (when NAV is normally determined for most ETFs), and do not represent the returns you would receive if you traded shares at other times. Performance shown may reflect fee waivers and/or expense reimbursements by the investment advisor to the fund for some or all of the periods shown. Performance would have been lower without such waivers. Performance for periods longer than a year has been annualized using a geometric mean.


Important notesInvesting involves risk, including possible loss of principal. Past performance does not guarantee future results.Important Risks of the Funds: The funds are actively managed and their characteristics will vary. These Funds may invest significantly in BlackRock equity and/or fixed income mutual funds (“underlying funds”) and affiliated and unaffiliated ETFs. As such, it is subject to the risks associated with the underlying BlackRock funds in which they invests. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves special risks including, but not limited to political risks, currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Asset allocation strategies do not assure profit and do not protect against loss. Non-diversification of investments means that more assets are potentially invested in fewer securities than if investments were diversified, so risk is increased because each investment has a greater effect on performance. These funds may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higher-rated securities. Additional Risks for the Dynamic High Income Fund: Covered call risk is the risk that the issuer will forgo any profit from increases in the market value of the security covering the call option but retain the risk of loss if the security declines in value. A number of factors may influence the option holder’s decision to exercise the option, including the value of the security, price volatility, dividend yield and interest rates. To the extent that these factors increase the value of the call option, the option holder is more likely to exercise the option, which may negatively affect the fund.

1 The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. Analyst Ratings are evaluated at least every 14 months. "For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf. The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar's current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar's expectations not to occur or to differ significantly from what we expected.


http://corporate.morningstar.com/us/documents/MethodologyDocuments/AnalystRatingforFundsMethodology.pdf

Important notes2 The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60- 119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The Managed Income Fund received a received a Morningstar Rating of 3 stars for the 3-year period, 4 stars for the 5-year period and 4 stars for the 10-year period, rated against 178, 149 and 86 Allocation--15% to 30% Equity Funds, respectively as of 9/30/19. The Multi-Asset Income Fund received a Morningstar Rating of 4 stars for the 3-year period, 3 stars for the 5-year period and 4 stars for the 10-year period, rated against 497, 402 and 267 Allocation--30% to 50% Equity Funds, respectively as 9/30/19. The Dynamic High Income Fund received a Morningstar Rating of 5 stars for the 3-year period, - stars for the 5-year period and - stars for the 10-year period, rated against 376, 307 and 179 World Allocation Funds, respectively as of 9/30/19.

This information should not be relied upon as research, investment advice, or a recommendation regarding any products, strategies, or any security in particular. This material is strictly for illustrative, educational, or informational purposes and is subject to change.

Must be preceded or accompanied by a prospectus for BlackRock Multi-Asset Income Fund, BlackRock Managed Income Fund and BlackRock Dynamic High Income Fund. © 2019 BlackRock, Inc. All Rights Reserved. BlackRock is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners.

Prepared by BlackRock Investments, LLC, member FINRA.

Not FDIC Insured • May Lose Value • No Bank Guarantee


https://www.blackrock.com/us/individual/literature/prospectus/pro-brfunds2-multiassetincomeport-inv-us.pdf?stream=reg&product=BR-INC-AG&shareClass=Class+Inst&documentId=920645%7E920373%7E920959%7E1735940%7E1686539&iframeUrlOverride=%2Fus%2Findividual%2Fliterature%2Fprospectus%2Fpro-brfunds2-multiassetincomeport-inv-us.pdf

https://www.blackrock.com/us/individual/resources/regulatory-documents/stream-document?stream=reg&product=BR-MI-AG&shareClass=CLASS+INST&documentId=1305335%7E1305332%7E1305334%7E1680953%7E1728553&iframeUrlOverride=/us/individual/literature/prospectus/pro-managedincome-inv-us.pdf

https://www.blackrock.com/us/individual/resources/regulatory-documents/stream-document?stream=reg&product=BR-DHI-AG&shareClass=CLASS+I&documentId=1059827%7E1059826%7E1059828%7E1596285%7E1686539&iframeUrlOverride=/us/individual/literature/prospectus/pro-dynamichighincomeport-inv-us.pdf

Important notes Important Information for Model Portfolios

This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the Funds, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Only an investor and their financial advisor know enough about their circumstances to make an investment decision.

Carefully consider the BlackRock and iShares Funds within the model portfolios' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectuses or, if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.

The BlackRock Model Portfolios are provided for illustrative and educational purposes only, do not constitute research, investment advice or a fiduciary investment recommendation from BlackRock to any client of a third party financial advisor (each, a “Financial Advisor”), and are intended for use only by such Financial Advisor as a resource to help build a portfolio or as an input in the development of investment advice from such Financial Advisor to its own clients and shall not be the sole or primary basis for such Financial Advisor’s recommendation and/or decision. Such Financial Advisors are responsible for making their own independent fiduciary judgment as to how to use the BlackRock Model Portfolios and/or whether to implement any trades for their clients. BlackRock does not have investment discretion over, or place trade orders for, any portfolios or accounts derived from the BlackRock Model Portfolios. BlackRock is not responsible for determining the appropriateness or suitability of the BlackRock Model Portfolios or any of the securities included therein for any client of a Financial Advisor. Information and other marketing materials provided by BlackRock concerning the BlackRock Model Portfolios – including holdings, performance, and other characteristics – may vary materially from any portfolios or accounts derived from the BlackRock Model Portfolios. Any performance shown for the BlackRock Model Portfolios does not include brokerage fees, commissions, or any overlay fee for portfolio management, which would further reduce returns. There is no guarantee that any investment strategy will be successful or achieve any particular level of results. The BlackRock Model Portfolios themselves are not funds. The BlackRock Model Portfolios, allocations, and data are subject to change.

The BlackRock and iShares Funds within the model portfolios are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”). BlackRock Fund Advisors and BlackRock Investment Management, LLC, affiliates of BlackRock Investments, LLC, are registered investment advisers.

©2019 BlackRock, Inc. All rights reserved. iShares and BlackRock are registered trademarks of BlackRock, Inc., or its subsidiaries. All other marks are the property of their respective owners.


BlackRock Multi-Asset Strategies Income Suite · 2020-01-17 · BlackRock Multi-Asset Strategies...

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Transcript of BlackRock Multi-Asset Strategies Income Suite · 2020-01-17 · BlackRock Multi-Asset Strategies...