Perspectives Newsletter Q3 2013
Seeking a high-quality income option for your portfolio? Consider the BlackRock National Municipal Fund.
The municipal bond market experienced a fairly tortured summer, but that has resulted in tremendous value in the tax-exempt marketplace. Consider this:
- Favorable entry point. Municipal bond yields have risen to levels not seen since 2011, offering a compelling buying opportunity for investors.
- Attractive income. Muni-to-Treasury ratios are at or near 100% across all maturities. This means munis are offering yields comparable to or higher than Treasuries before tax, and looking even better on an after-tax basis.
- High quality. With an average rating of AA, the municipal market as a whole remains of high quality, particularly relative to the corporate bond market (though there may be less information available on the financial condition of issuers of municipal securities).
For more than 30 years, the National Municipal Fund has offered exposure to high-quality municipal bonds across the US. The Fund boasts:
- Experienced management team. Lead portfolio managers Walter O'Connor and Ted Jaeckel have nearly 60 years of combined investment experience.
- Commitment to credit research. The portfolio managers are supported by a dedicated team of 16 credit research analysts focused exclusively on evaluating each credit and issuer prior to investment.
- Long-term track record. Through the years, the Fund has sought to preserve wealth and generate income by delivering an attractive yield and above-average performance with less volatility than its peers.
To learn more, contact your financial professional or call our award-winning service center at 800-441-7762.
Investment involves risks. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves additional risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. These risks are magnified for investments in emerging/developing markets or smaller capital markets. The two main risks related to fixed income investing are interest-rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. The market for municipal bonds may be less liquid than for taxable bonds. A portion of the income may be taxable. Some investors may be subject to Alternative Minimum Tax (AMT). Capital gains distributions, if any, are taxable.
This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are those of the investment professionals profiled as of September 2013, and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or make investment decisions that may, in certain respects, not be consistent with the information contained in this report. The information and opinions contained in this material are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Any investments named within this material may not necessarily be held in any accounts managed by BlackRock. Reliance upon information in this material is at the sole discretion of the reader. Investment involves risks.
You should consider the investment objectives, risks, charges and expenses of any fund carefully before investing. The funds' prospectuses and, if available, the summary prospectuses contain this and other information about the funds, and are available, along with information on other BlackRock funds by calling 800-882-0052. The prospectus and, if available, the summary prospectuses should be read carefully before investing.
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