Sector-Specific

Corporate Bond

BlackRock applies the same controlled duration, relative value sector rotation, and security selection style to the management of fundamental fixed income mandates, including Corporate Bond. The distinguishing feature of BlackRock's fixed income investment management style is the ability to generate alpha within a risk-managed framework. Real-time analysis of a vast array of risk measures allows assessment of the potential impact of various sector and security strategies on total return. As a result, consistent value is added and performance volatility is controlled.

High Yield / Bank Loans

BlackRock's investment strategy for high yield fixed income is subject to the same discipline, oversight and investment philosophy as are all our fundamental fixed income mandates. We employ a team-oriented approach with close communication between portfolio management and credit research to focus on idea generation and portfolio surveillance.

Our emphasis on independent fundamental research of securities and sectors allows us to uncover relative value and provide ample diversification of risk. Our research effort is strengthened by our network of communication among analysts, not only across the credit spectrum but also across asset classes. Consistent with our style, we assess return per unit of risk in order to achieve our investment objective, which for all credit-sensitive fixed income products, is to provide consistent and optimal risk-adjusted returns.

BlackRock's disciplined investment process seeks to add value through:

• Intense fundamental credit analysis
• Relative value security selection
• Credit surveillance
• The judgment of experienced portfolio managers.

We believe our investment philosophy has been successful due to its strong emphasis on independent fundamental research of individual securities and industries, which allows us to uncover relative value and provides ample diversification of risk. Where permitted, we actively rotate among capital structures and individual issuers and sectors based on relative value considerations.

Mortgages

BlackRock applies the same controlled duration, relative value sector rotation, and security selection style to the management of fundamental fixed income mandates, including mortgage products. The distinguishing feature of BlackRock's fixed income investment management style is the ability to generate alpha within a risk-managed framework. Real-time analysis of a vast array of risk measures allows assessment of the potential impact of various sector and security strategies on total return. As a result, consistent value is added and performance volatility is controlled.

Stable Value

BlackRock's Stable Value strategy applies the same controlled duration, relative value sector rotation, and security selection style management as all of our fundamental fixed income mandates. We offer three Stable Value products:

Retirement Preservation Trust is a stable value collective trust with objectives of preservation of capital, liquidity, and current income at levels higher than an institutional money market portfolio, while producing returns similar to short to medium-term bond funds without the volatility.
Active management of synthetic GIC portfolios offers the stability, book value accounting, and benefit responsiveness of traditional GICs and the potential for higher returns and superior diversification inherent in an actively managed portfolio. We use sophisticated risk analytics to help customize portfolios within client specific risk constraints, including credit quality, sector emphasis, and duration.

Stable Value separate account portfolio management provides a comprehensive and tailored solution for clients that combines active management of stable value portfolios with a liquidity component.
The distinguishing feature of BlackRock's fixed income investment management style is the ability to generate alpha within a risk-managed framework. Real-time analysis of a vast array of risk measures allows assessment of the potential impact of various sector and security strategies on total return. As a result, consistent value is added and performance volatility is controlled.
 

Inflation-Linked Bonds

BlackRock applies the same controlled duration, relative value sector rotation, and security selection style to the management of fundamental fixed income mandates, including Inflation-Linked Bonds (ILBs). The distinguishing feature of BlackRock's fixed income investment management style is the ability to generate alpha within a risk-managed framework. Consistent value is added and performance performance volatility is controlled. BlackRock's ILB philosophy emphasizes incremental excess return without the use of leverage. We can manage US TIPS-only portfolios, ILB portfolios that allow the use of nominal securities, and global ILB portfolios that allow non-dollar ILBs and nominal securities.

For inquiries on these products, please email: institutional.canada@blackrock.com.