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BlackRock Investment Directions
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Key: = Current Quarter = Tactical Position
= Previous Quarter
Investor A: BGCAX Investor C: BGCCX Institutional: BGCIX
- The fund takes long and short positions in a variety of global credit securities and seeks tomitigate interest rate sensitivity.
- Analysts provide local market insight to uncover value across regions and credit quality.
Investor A: BHYAX Investor C: BHYCX Institutional: BHYIX
- Overall Morningstar Rating Investor A shares rated against 512 High Yield Bond funds, as of 9/30/12, based on risk-adjusted total return. Ratings determined monthly, subject to change.
- Focuses on well-run companies with strong cash flows and ability to pay down debt.
- Credit intensive, research driven, bottom-up process led by a deep and experienced team.
Investor A: BASIX Investor C: BSICX Institutional: BSIIX
- Overall Morningstar Rating Investor C shares rated against 71 Non-traditional Bond Funds, as of 9/30/12, based on risk-adjusted total return. Ratings determined monthly, subject to change.
- Invests opportunistically without sector constraints across the fixed income universe.
- Broad flexibility provides ability to capitalize on market shifts and identify bonds with the best prospects for achieving consistent total return over the long term.
|High Yield |
|Securitized Assets |
"Longer term, we continue to hold that investors should be positioned to take advantage of the income and total return opportunity gained from fixed income credit, in particular, high yield and bank loan asset classes."
Investor A: MDDVX Investor C: MCDVX Institutional: MADVX
- Overall Morningstar Rating Investor C shares rated against 1,063 Large Value funds, as of 9/30/12, based on risk-adjusted total return. Ratings determined monthly, subject to change.
- Invests in high-quality, large-capitalization companies, focusing on multi-national, dividendpayingvalue stocks exhibiting strong balance sheets, solid earnings and revenue growth.
- Employs a process that balances current income with capital appreciation.
"It is a lot to ask, but while the near-term risks are high, equities should continue to outperform Treasuries and cash over the next twelve months."
Global Allocation Fund Fund Profile
Investor A: MDLOX Investor C: MCLOX Institutional: MALOX
- Highly diversified approach that typically invests in over 700 holdings in different assetclasses, sectors, regions and market capitalizations.
- A core holding for clients of various risk profiles, investment objectives and portfolio sizes.
Multi-Asset Income Fund Fund Profile
Investor A: BAICX Investor C: BCICX Institutional: BIICX
- A "one-stop shop' income portfolio pursuing the best yield opportunities around the world for attractive, growing and diversified income.
"We suggest investors balance risk assets with capital preservation as the coming three months could see ups and downs."
Investor A: MDNLX Investor C: MFNLX Institutional: MANLX
- Overall Morningstar Rating Investor A shares rated against 219 Muni National Long funds, as of 9/30/12 based on risk-adjusted total return. Ratings determined monthly, subject to change.
- Seeks to provide a competitive yield while minimizing risk and volatility.
- Draws on the expertise of a deep and seasoned team of over 30 investment professionals.
|Yield Curve |
"Still, munis offer yield, income and capital preservation in an environment where each is highly prized."
The main risk of any investment in stocks and bonds is that values fluctuate in price. The value of an investment can go up or down depending upon market conditions. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. There is more business risk in investing in small- and mid-capitalization companies than in larger, better-capitalized companies. Investing in long/short strategies presents the opportunity for significant losses including in some cases, losses which exceed the principal amount invested. There is also the possibility that long and short strategies could both fail, thereby increasing volatility and potential losses. 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 non-investment-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. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. There is no guarantee that dividends will be paid. 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. Concentrating investments in a certain sector means that performance will be more susceptible to factors affecting that sector(s) and more volatile than funds that invest in many different sectors/stocks.
Past performance is no guarantee of future results. The opinions presented are those of the authors on October 5, 2012, and may change as subsequent conditions vary. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in the fund's monthly performance (including the effects of sale charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receives 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% receives 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variation in the distribution percentages.) Equity Dividend Fund (C) received 4 stars 3-year, 4 stars 5-year and 5 stars 10-year, among 1063, 938 and 587 funds. High Yield Bond Fund (A) received 4 stars 3-year, 3 stars 5-year and 4 stars 10-year, among 512, 448 and 312 funds. National Municipal Fund (A) received 3 stars 3-year, and 5-year and 4 stars 10-year, rated against 219, 205 and 175 funds. Strategic Income Opportunities received 4 stars for the 3-year period against 71 Funds.
Investors 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.