STRATEGIC INCOME OPPORTUNITIES FUND
An Adaptable Approach for Today's Changing Bond Markets
Once thought safe. Now risky? Rethink your bonds.
Many traditional bond funds have been losing money. Yields are near record lows. And if interest rates rise or inflation picks up, you could lose even more ground.
So what do I do with my money?
The BlackRock Strategic Income Opportunities Fund (BSIIX), can adapt as markets change and move freely in search of the best returns, while seeking to protect against rising interest rates.
In fact, the fund has out-yielded a traditional bond investment, with greater protection against rising interest rates - 100% of the time.*
Average Annual Total Returns
as of 9/30/13
|Investor A Shares||1 yr.||3 yr.||5 yr.||10 yr.||Since Inception|
|at NAV (%)||3.10||3.41||6.65||-||4.96|
|w/ sales charge (%)||-1.07||2.02||5.79||-||4.20|
* Source: Morningstar from 3/31/10 (strategy inception 3/5/10) to 9/30/13. As of each month-end, the BlackRock Strategic Income Opportunities Fund ("the Fund") Institutional share class, which lies in the Nontraditional Bond category, had a higher 30-day SEC yield than the Morningstar Intermediate Term Bond category average, as well as lower interest rate risk measured by effective duration. Duration is a measure of a bond fund’s sensitivity to interest rates. For every year of duration, a 1% change in interest rates will lead to a 1% change in the opposite direction of a bond fund’s value. Institutional shares are not available to all investors and may have certain restrictions and limitations.
† Source: Barclays. Based on yield and duration of the Barclays US Aggregate Bond Index as of 9/30/13. Approximation does not take into account potential changes to market credit spreads.
Performance data quoted represents past performance, which is no guarantee of future results. Investment returns and principal values may fluctuate so that 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 that shown. All returns assume reinvestment of all dividend and capital gain distributions. Total annual operating expenses as stated in the fund's most recent prospectus are 0.93% (Institutional Shares). Since inception date of the fund is 02/05/08.
The share classes have different sales charges, fees and other features. Institutional shares are not available to all investors.
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 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 market value of bonds. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Investments in noninvestment-grade debt securities ("high-yield" 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. The fund may use derivatives, such as futures, options, swaps or tender-option bonds, to hedge its investments or to seek to enhance returns. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. There may be less information available on the financial condition of issuers of municipal securities than for public corporations. 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.
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.