BlackRock CoRI™ Funds
A New Choice for Pre-Retirees
Designed for Pre-Retirees Seeking Retirement Income Clarity
Introducing the BlackRock CoRI™ Funds, designed for people 55 and older who would like to plan for retirement income. The combination of the BlackRock CoRI™ Retirement Indexes and the BlackRock CoRI Funds have the potential to offer increased clarity and a new way to plan for retirement income.
The Pre-Retirement Challenge
Pre-Retirement (the ten years before you turn 65), is when retirement planning becomes critical. Pre-retirees need to answer tough questions, such as:
1. Have I saved enough?
2. Is there a way to stay on track?
3. Do I have to give up flexibility?
Together, the CoRI Retirement Indexes and CoRI Funds can help pre-retirees obtain clarity around these questions.
So What Do I Do With My Money?®
If you are 55 to 64 years old, here's how the CoRI Retirement Indexes and CoRI Funds can help you obtain clarity in preparing for retirement. By choosing the CoRI Retirement Index and CoRI Fund whose name corresponds most closely to the year in which you turn 65, you can:
FIND YOUR NUMBER: Refer to your CoRI Retirement Index level for the estimated cost of $1 of inflation adjusted lifetime income starting when you turn 65.
INVEST IN A CoRI FUND: Use the CoRI Retirement Index level to determine how much to invest in the corresponding CoRI Fund.
TRACK YOUR INDEX: Your CoRI Retirement Index can help you understand changes in the income-purchasing power of your savings.
CHOOSE AN INCOME PLAN: Once you turn 65, you can liquidate your holdings in the fund and buy an annuity, remain invested in the fund for up to ten years after you turn 65 and take distributions as part of your retirement income plan*, or design your own plan.
*Once your CoRI Fund reaches the year in which you turn 75, the fund will be liquidated and your remaining investment will be returned to you.
Carefully consider the BlackRock CoRI Funds' investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds' prospectus and, if available, summary prospectus, which may be obtained by calling 800-882-0052. Read the prospectus carefully before investing.
Investing involves risk, including possible loss of principal.
The CoRI Funds are not target date funds and do not by themselves represent a balanced investment. Each CoRI Fund has a number (a "reference year") in its name that designates the year in which an investor turns 65. An investment in the CoRI Funds is not guaranteed, and an investor may experience losses, including near, at, or after the reference year. Each CoRI Fund will commence its liquidation process 10 years after (on or about) July 1st of the reference year.
The CoRI Funds do not ensure that an investor will have sufficient assets to cover retirement expenses or that an investor will have enough saved to be able to retire in the year identified in the CoRI Fund name. The CoRI Funds, the CoRI Retirement Indexes, their returns, and the value of an investment in the CoRI Funds, do not reflect the fees, expenses and cost that may be associated with an annuity or any other retirement income product that an individual may purchase, or any assumption that such a product will be available for purchase at the time of retirement. There can be no assurance that an investment strategy based on a CoRI Retirement Index will be successful. The CoRI Retirement Indexes are unmanaged and an investor cannot invest directly in a CoRI Retirement Index.
The CoRI Funds may engage in active and frequent trading and may experience high portfolio turnover, which may result in increased transaction costs to the funds. 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 bond values. The CoRI Funds may be subject to a greater risk of rising interest rates due to the current period of historically low rates. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. The CoRI Funds may use derivatives to hedge investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility.
The CoRI Retirement Indexes are maintained by BlackRock Index Services, LLC (the "Affiliated Index Provider"), a subsidiary of BlackRock, Inc., that designs, sponsors and publishes indices for use in portfolio benchmarking and portfolio management. The Affiliated Index Provider is affiliated with, but a separate legal entity from, BlackRock Advisors, LLC, a subsidiary of BlackRock, Inc. and the CoRI Funds' investment adviser. BlackRock Advisors, LLC will have no role in maintaining the CoRI Retirement Indexes and will not be involved in, or have any control over, the calculation of the CoRI Retirement Index Levels or the construction of the CoRI Retirement Indexes' securities portfolios.
While the Affiliated Index Provider publishes descriptions of what the CoRI Retirement Indexes are designed to achieve, the Affiliated Index Provider does not provide any warranty or accept any liability in relation to quality, accuracy or completeness of data in respect of the CoRI Retirement Indexes, and does not guarantee that the CoRI Retirement Indexes will not deviate from their stated methodologies. The Affiliated Index Provider does not provide any warranty or guarantee for Affiliated Index Provider errors.
This material is not intended to provide investment advice. BlackRock does not guarantee the suitability or potential value of any particular investment.
Prepared by BlackRock Investments, LLC ("BRIL"), member FINRA. BRIL is a subsidiary of BlackRock, Inc.
©2014 BlackRock, Inc. All Rights Reserved. BLACKROCK, CoRI, SO WHAT DO I DO WITH MY MONEY, and the CoRI logo are registered and unregistered trademarks of BlackRock, Inc. or its subsidiaries. All other trademarks are those of their respective owners.