BlackRock High Yield Bond Fund
Prudently Balancing Income, Risk & Return
The BlackRock High Yield Bond Fund has helped investors achieve high levels of income and capital appreciation using a disciplined, research-intensive investment process.
Source: BlackRock. Morningstar Category, Lipper Category, St. Louis FED as of 12/31/12.
The BlackRock High Yield Bond Fund has a remarkable record of consistency, outperforming its Morningstar and Lipper peer group averages in 9 out of the last 10 calendar years. This proven record is predicated on the Fund’s ability to prudently manage and balance income, risk and return through diverse market conditions; appropriately increasing risk in stronger credit environments while carefully dialing down risk when needed. After all, the key to weathering markets isn’t focusing solely on the highest yielding bonds and sacrificing total return, but rather, flexibly adapting for changing markets.
Portfolio Management Team
BlackRock's leveraged finance group manages over $25bn in floating rate bank loans and high yield securities. The team has over 35 investment professionals, which is among the market's largest. Among the market's most experienced managers of bank loan funds with a track record dating back to 1988. The fund is managed by:
- James Keenan, Portfolio Manager and Head of the BlackRock Leveraged Finance Group, over 15 years investment experience
- Leland Hart, Lead Portfolio Manager and Head of BlackRock's Bank Loan Team; over 18 years industry experience
- Adrian Marshall, Portfolio Manager, over 10 years investment experience
Investor A: BHYAX
Investor C: BHYCX
Class R: BHYRX
Overall Morningstar Rating™
Investor A shares rated against 524 High Yield Bond funds as of 9/30/13.‡
IMPORTANT RISKS OF THE FUND
Past performance is no guarantee of future results. The fund is actively managed and its characteristics will vary. Any holdings shown are for information only and should not be deemed as a recommendation to buy or sell the securities mentioned. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Two main risks related to fixed income investing are interest-rate 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 the bond issuer will not be able to make principal and interest payments. The principal on mortgage or asset-backed securities normally may be prepaid at any time, which will reduce the yield and market value of those securities. US obligations are supported by varying degrees of credit but generally are not backed by the full faith and credit of the US government. Investments in non-investment-grade debt securities ("highyield" or "junk" bonds) may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility.
‡ Ratings are determined monthly and subject to change. 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. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each 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. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) BlackRock High Yield Bond Fund was rated against the following numbers of US-domiciled High Yield Bond funds over the following time periods: 534 in the last 3 years, 462 in 5 years, and 319 in 10 years. With respect to these High Yield Bond funds, the fund received a Morningstar Rating of 3, 3 and 4 stars for the 3-, 5- and 10-year periods, respectively. Other classes may have different performance characteristics. ©2013 Morningstar, Inc. All rights reserved.
You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The Fund's prospectus contains this and other information about the Fund. The prospectus should be read carefully before investing.
Prepared by BlackRock Investments, LLC, member FINRA.