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Prospectus |
Key facts and details about the Fund listed in this prospectus, including
investment objectives, principal investment strategies, principal
risk factors, fee and expense information and
historical performance information
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42 |
Information about account services, sales charges and waivers,
shareholder transactions, and distributions and other
payments |
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74 |
Information about BlackRock and the Portfolio Managers |
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80 |
Financial Performance of the Fund |
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86 |
Glossary of Investment Terms |
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A-1 |
Inside Back Cover | ||
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Back Cover |
Shareholder Fees
(fees paid directly from your investment) |
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Investor A
Shares |
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Investor C
Shares |
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Institutional Shares |
Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
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4.00% |
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None |
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None |
Maximum Deferred Sales Charge (Load) (as a percentage of offering price or redemption proceeds, whichever is lower) |
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None1 |
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1.00%2 |
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None |
Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
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Investor A
Shares |
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Investor C
Shares |
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Institutional
Shares |
Management Fee3 |
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0.35% |
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0.35% |
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0.35% |
Distribution and/or Service (12b-1) Fees |
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0.25% |
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1.00% |
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None |
Other Expenses4 |
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0.23% |
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0.25% |
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0.28% |
Acquired Fund Fees and Expenses5
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0.09% |
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0.09% |
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0.09% |
Total Annual Fund Operating Expenses5 |
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0.92% |
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1.69% |
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0.72% |
Fee Waivers and/or Expense Reimbursements3,4
|
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(0.19)% |
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(0.21)% |
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(0.24)% |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements3,4 |
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0.73% |
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1.48% |
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0.48% |
|
1 Year |
3 Years |
5 Years |
10 Years |
Investor A Shares |
$472 |
$663 |
$871 |
$1,469 |
Investor C Shares |
$251 |
$512 |
$898 |
$1,775 |
Institutional Shares |
$49 |
$206 |
$377 |
$872 |
|
1 Year |
3 Years |
5 Years |
10 Years |
Investor C Shares |
$151 |
$512 |
$898 |
$1,775 |
For the periods ended 12/31/23
Average Annual Total Returns |
1 Year |
5 Years |
10 Years |
BlackRock Managed Income Fund — Investor A Shares |
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|
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Return Before Taxes |
5.63 % |
3.05 % |
3.35 % |
Return After Taxes on Distributions |
3.65 % |
1.40 % |
1.84 % |
Return After Taxes on Distributions and Sale of Fund Shares |
3.36 % |
1.68 % |
1.96 % |
BlackRock Managed Income Fund — Investor C Shares |
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|
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Return Before Taxes |
8.18 % |
3.13 % |
3.01 % |
BlackRock Managed Income Fund — Institutional Shares |
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|
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Return Before Taxes |
10.31 % |
4.18 % |
4.07 % |
Bloomberg U.S. Aggregate Bond Index
(Reflects no deduction for fees, expenses or taxes) |
5.53 % |
1.10 % |
1.81 % |
Customized Reference Benchmark (Reflects no deduction for fees, expenses or taxes) |
11.48 % |
5.58 % |
5.00 % |
Portfolio Manager |
Portfolio Manager of the Fund Since |
Title |
Justin Christofel, CFA |
2016 |
Managing Director of BlackRock, Inc. |
Alex Shingler, CFA |
2016 |
Managing Director of BlackRock, Inc. |
|
Investor A and Investor C Shares |
Institutional Shares |
Minimum Initial
Investment |
$1,000 for all accounts except:
•$50, if establishing an Automatic Investment Plan. •There is no investment minimum for employer-
sponsored retirement plans (not including SEP
IRAs, SIMPLE IRAs or SARSEPs).
•There is no investment minimum for certain fee- based programs. |
There is no minimum initial investment for:
•Employer-sponsored
retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs),
state sponsored 529 college savings plans,
collective trust funds, investment companies or
other pooled investment vehicles, unaffiliated
thrifts and unaffiliated banks and trust
companies, each of which may purchase shares
of the Fund through a Financial Intermediary that
has entered into an agreement with the Fund’s
distributor to purchase such shares.
•Clients
of Financial Intermediaries that: (i) charge such clients a fee for advisory, investment
consulting, or similar services or (ii) have entered
into an agreement with the Fund’s distributor to
offer Institutional Shares through a no-load
program or investment platform.
•Clients
investing through a self-directed IRA brokerage account program sponsored by a
retirement plan record-keeper, provided that such
program offers only mutual fund options and that
the program maintains an account with the Fund
on an omnibus basis. $2 million for individuals and “Institutional
Investors,” which include, but are not limited to,
endowments, foundations, family offices, local,
city, and state governmental institutions,
corporations and insurance company separate
accounts who may purchase shares of the Fund
through a Financial Intermediary that has entered
into an agreement with the Fund’s distributor to
purchase such shares. $1,000 for:
•Clients
investing through Financial Intermediaries that offer such shares on a platform that
charges a transaction based sales commission outside of
the Fund. •Tax-qualified accounts for insurance agents that
are registered representatives of an insurance
company’s broker-dealer that has entered into an
agreement with the Fund’s distributor to offer
Institutional Shares, and the family members of
such persons. |
Minimum Additional Investment |
$50 for all accounts (with the exception of certain employer-sponsored retirement plans which may have a lower minimum). |
No subsequent minimum. |
Fund Name |
Investment Objective and Principal Strategies |
|
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BlackRock Floating Rate Income Portfolio |
The primary investment objective of the fund is to seek to provide high current income,
with a secondary objective of long-term capital appreciation. The fund normally invests at least 80% of its
assets in floating rate investments and investments that are the economic equivalent of
floating rate investments, which effectively enables the fund to achieve a floating rate
of income. These investments may include, but are not limited to, any combination of the
following securities: (i) senior secured floating rate loans or debt; (ii) second lien
or other subordinated or unsecured floating rate loans or debt; and (iii) fixed-rate
loans or debt with respect to which the fund has entered into derivative instruments to
effectively convert the fixed-rate interest payments into floating rate interest
payments. The fund may also purchase, without limitation, participations or assignments
in senior floating rate loans or second lien floating rate loans. For purposes of the fund’s investments, the
term debt includes investments in convertible or preferred securities.
The fund may invest in investments of any
credit quality without limitation, including investments rated below investment grade.
The fund anticipates that, under current market conditions, a substantial portion of its
portfolio will consist of leveraged loans rated below investment grade and similar
investments. These investments are expected to exhibit credit risks similar to high
yield securities, which are commonly referred to as “junk
bonds.” The fund may
invest up to 20% of its assets in fixed-income securities with respect to which the fund
has not entered into derivative instruments to effectively convert the fixed-rate
interest payments into floating-rate interest payments. Such fixed-income securities
include, but are not limited to, corporate bonds, preferred securities, convertible
securities, mezzanine investments, collateralized loan obligations, senior loans, second
lien loans, structured products and U.S. government debt securities. The fund’s investments in any floating rate and fixed-income securities may be of any duration or maturity. The fund may invest in securities of foreign issuers, including issuers located in emerging markets, without limitation. The fund may also invest up to 15% of its net assets in illiquid investments. The fund may also invest in companies whose financial condition is uncertain, where the
borrower has defaulted in the payment of interest or principal or in the performance of
its covenants or agreements, or that may be involved in bankruptcy proceedings,
reorganizations or financial restructurings. The fund may invest up to 10% of its assets in
common stocks or other equity securities. In addition, the fund may acquire and hold
such securities (or rights to acquire such securities) in unit offerings with
fixed-income securities, in connection with an amendment, waiver, conversion or exchange
of fixed-income securities, in connection with the bankruptcy or workout of a distressed
fixed-income security, or upon the exercise of a right or warrant obtained on account of
a fixed-income security. The
fund may buy or sell options or futures on a security or an index of securities, buy or
sell options on futures or enter into credit default swaps and interest rate or foreign
currency transactions, including swaps and forward contracts (collectively, commonly
known as derivatives). The fund may use derivatives for hedging purposes, but is not
required to, as well as to increase the total return on its portfolio investments. |
BlackRock Global Dividend Portfolio |
The investment objective of the fund is to seek to provide a level of current income that exceeds the average yield on global stocks generally. Additionally, the fund seeks to provide long-term capital appreciation. |
Fund Name |
Investment Objective and Principal Strategies |
BlackRock Global Dividend Portfolio (continued) |
Under normal circumstances, the fund will invest at least 80% of its net assets in
dividend-paying equity securities and at least 40% of its assets outside of the United
States (unless market conditions are not deemed favorable by fund management, in
which case the fund would invest at least 30% of its assets outside of the United
States). The fund will primarily invest in common stock, preferred stock, securities
convertible into common and preferred stock and non-convertible preferred stock. The
fund may invest in securities of non-U.S. issuers that can be U.S. dollar based or non-
U.S. dollar based. The fund may invest in securities of companies of any market
capitalization, but intends to invest primarily in securities of large capitalization
companies. The combination of equity securities will be varied from time to time both
with respect to types of securities and markets in response to changing market and
economic trends. The fund may invest in shares of companies through IPOs and “new
issues.” The fund may invest up to 20% of its net assets in global fixed-income securities,
including corporate bonds, U.S. Government debt securities, non-U.S. Government and
supranational debt securities (an example of such an entity is the International Bank for
Reconstruction and Development (the “World Bank”)), asset-backed securities,
mortgage-backed securities, corporate loans, emerging market debt securities and
non- investment grade debt securities (high yield or junk bonds). Investment in
fixed-income securities will be made on an opportunistic basis. The fund may invest in
fixed-income securities of any duration or maturity. The fund has no geographic limits in where it may
invest and has no specific policy on the number of different countries in which it will
invest. The fund may invest in both developed and emerging markets. The fund may
emphasize foreign securities when fund management expects these investments to
outperform U.S. securities. The fund may use derivatives, including options, futures,
swaps and forward contracts both to seek to increase the return of the fund or to hedge
(or protect) the value of its assets against adverse movements in currency exchange
rates, interest rates and movements in the securities markets. The fund may enter into
currency transactions on a hedged or unhedged basis in order to seek total
return. The Fund may use
indexed and inverse securities. Under normal circumstances, the fund anticipates it will allocate a substantial amount
(at least 40% or more — unless market conditions are not deemed favorable by fund
management, in which case the fund would invest at least 30%) of its total assets in
foreign securities, which may include securities (i) of foreign government issuers, (ii) of
issuers organized or located outside the United States, (iii) of issuers which primarily
trade in a market located outside the United States, or (iv) of issuers doing a
substantial amount of business outside the United States, which the fund considers to be
companies that derive at least 50% of their revenue or profits from business outside the
United States or have at least 50% of their sales or assets outside the United States.
The fund will allocate its assets among various regions and countries, including the
United States (but in no less than three different countries). For temporary defensive
purposes the fund may deviate very substantially from this allocation.
The fund may engage in active and frequent
trading of portfolio securities to achieve its principal investment
strategies. |
BlackRock GNMA Portfolio |
The investment objective of the fund is to seek to maximize total return, consistent with income generation and prudent investment management. Under normal circumstances, the fund invests at least 80% of its assets in GNMA
securities. The fund invests primarily in securities issued by GNMA as well as other U.S.
Government securities. Securities purchased by the fund are rated in the highest rating category (AAA or Aaa) at the time of purchase by at least one major rating agency or are determined by the fund management team to be of similar quality. Split rated bonds will be considered to have the higher credit rating. Split rated bonds are bonds that receive different ratings from two or more rating agencies. The fund measures its performance against the Bloomberg GNMA Total Return Index Value Unhedged USD (the benchmark). Under normal circumstances, the fund seeks to maintain an average portfolio duration that is within ±1 year of the duration of the benchmark. The fund also makes investments in residential and commercial mortgage-backed securities and other asset-backed securities. |
Fund Name |
Investment Objective and Principal Strategies |
BlackRock GNMA Portfolio (continued) |
The fund may buy or sell options or futures on a security or an index of securities, or
enter into credit default swaps and interest rate transactions, including swaps
(collectively, commonly known as derivatives). The fund may seek to obtain market
exposure to the securities in which it primarily invests by entering into a series of
purchase and sale contracts or by using other investment techniques (such as reverse
repurchase agreements or dollar rolls). The fund may engage in active and frequent trading
of portfolio securities to achieve its primary investment strategies.
|
BlackRock High Equity Income Fund |
The investment objective of the fund is to seek high current income while maintaining
prospects for capital appreciation. The fund seeks to achieve its investment objective
by investing primarily in a diversified portfolio of equity securities. Under normal
circumstances, the fund will invest at least 80% of its net assets, plus the amount of
any borrowings for investment purposes, in equity securities and equity-related
instruments, including equity-linked notes. The fund may invest in securities of
companies with any market capitalization, but will generally focus on large cap
securities. The fund may invest up to 50% of its assets in equity- linked notes that
provide exposure to equity securities and covered call options or other types of
financial instruments. With
respect to the fund’s equity investments, the fund may invest in common stock,
preferred stock, securities convertible into common and preferred stock, non-convertible
preferred stock and depositary receipts. The fund generally intends to invest in dividend
paying stocks. From time to time, the fund may invest in shares of companies through
IPOs. The fund may invest in securities from any country, including emerging markets.
The fund may invest in securities denominated in both U.S. dollars and non-U.S. dollar
currencies. BlackRock chooses investments for the fund that it believes will provide
current income and current gains. The fund’s portfolio, in the aggregate, will
be structured in a manner designed to deliver high current income while maintaining
prospects for capital appreciation. The fund intends to employ a strategy of writing (selling) covered call and put options on common stocks, indices of securities, sectors of securities and baskets of securities, primarily through structured notes. This option strategy is intended to generate current gains from option premiums as a means to enhance distributions payable to the fund’s shareholders. As the fund writes more covered call options, its ability to benefit from capital appreciation becomes more limited and the fund’s total return may deviate more from the returns of the Russell 1000® Value Index, an all equity benchmark. The fund seeks to produce a high level of current income from dividends and from option writing premiums. The fund may invest in master limited partnerships that are generally in energy- and financial-related industries and in U.S. and non-U.S. real estate investment trusts, as well as structured products, including equity-linked notes, to maximize the fund’s current
income. The fund may engage in active and frequent trading of portfolio securities to achieve its
primary investment strategies. |
BlackRock High Yield Bond Portfolio |
The investment objective of the fund is to seek to maximize total return, consistent with income generation and prudent investment management. The fund invests primarily in non-investment grade bonds with maturities of ten years or
less. The fund normally invests at least 80% of its assets in high yield bonds. The high
yield securities (commonly called “junk bonds”) acquired by the fund will generally be in
the lower rating categories of the major rating agencies (BB or lower by S&P Global
Ratings or Fitch Ratings, Inc. or Ba or lower by Moody’s Investor Services) or
will be determined by the fund management team to be of similar quality. Split rated
bonds and other fixed-income securities (securities that receive different ratings from
two or more rating agencies) are valued as follows: if three agencies rate a security,
the security will be considered to have the median credit rating; if two of the three
agencies rate a security, the security will be considered to have the lower credit
rating. The fund may invest up to 30% of its assets in non-dollar denominated bonds of
issuers located outside of the United States. The fund’s investment in non-dollar
denominated bonds may be on a currency hedged or unhedged basis. The fund may also
invest in convertible and preferred securities. Convertible debt securities will be
counted toward the fund’s 80% policy to the extent they have characteristics
similar to the securities included within that policy. |
Fund Name |
Investment Objective and Principal Strategies |
BlackRock High Yield Bond Portfolio
(continued) |
To add additional diversification, the management team can invest in a wide range of
securities including corporate bonds, mezzanine investments, collateralized bond
obligations, bank loans and mortgage-backed and asset-backed securities. The High
Yield Fund can also invest, to the extent consistent with its investment objective, in
non- U.S. and emerging market securities and currencies. The High Yield Fund may invest
in securities of any rating, and may invest up to 10% of its assets (measured at the
time of investment) in distressed securities that are in default or the issuers of which
are in bankruptcy. The fund may buy or sell options or futures on a
security or an index of securities, or enter into credit default swaps and interest rate
or foreign currency transactions, including swaps (collectively, commonly known as
derivatives). The fund may use derivative instruments to hedge its investments or to
seek to enhance returns. The fund may seek to obtain market exposure to the securities
in which it primarily invests by entering into a series of purchase and sale contracts
or by using other investment techniques (such as reverse repurchase agreements or dollar
rolls). The fund may engage in
active and frequent trading of portfolio securities to achieve its principal investment
strategies. |
|
|
Fund Name |
Investment Objective and Principal Strategies |
|
|
iShares 0-5 Year High Yield Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, high yield corporate bonds with remaining maturities of less than five
years. The fund seeks to track the investment results of the Markit iBoxx® USD Liquid High
Yield 0-5 Index (the “Underlying Index”), which is designed to reflect the performance of
U.S. dollar-denominated high yield (as determined by Markit Indices Limited (the
“Index Provider” or “Markit”)) corporate debt. High yield bonds
are also known as “junk bonds” and are generally rated below
investment-grade. The Underlying Index offers exposure to liquid (according to
Markit’s liquidity screens, which could vary from other measures of liquidity)
U.S. dollar-denominated high yield corporate bonds maturing between zero and five years
and is rebalanced on a monthly basis. Only bonds with $350 million minimum face value
per bond are included in the Underlying Index, provided they are trading at a minimum
price in accordance with Markit’s liquidity screens. The Underlying Index uses a
market-value weighted methodology with a cap on each issuer of 3%. As of October 31,
2023, a significant portion of the Underlying Index is represented by securities of
companies in the consumer services and industrials industries or sectors. The components
of the Underlying Index are likely to change over time. |
iShares 1-3 Year Treasury Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one and three years. The fund seeks to track the investment results of the ICE U.S. Treasury 1-3 Year Bond
Index (the “Underlying Index”), which measures the performance of public obligations of
the U.S. Treasury that have a remaining maturity of greater than or equal to one year
and less than three years. As of February 28, 2023, there were 94 issues in the
Underlying Index. The Underlying Index consists of publicly-issued U.S. Treasury
securities that have a remaining maturity of greater than or equal to one year and less
than three years and have $300 million or more of outstanding face value, excluding
amounts held by the Federal Reserve System. In addition, the securities in the
Underlying Index must be fixed-rate and denominated in U.S. dollars. Excluded from the
Underlying Index are inflation-linked securities, Treasury bills, cash management bills,
any government agency debt issued with or without a government guarantee and zero-coupon
issues that have |
Fund Name |
Investment Objective and Principal Strategies |
iShares 1-3 Year Treasury Bond ETF
(continued) |
been stripped from coupon-paying bonds. The Underlying Index is market value weighted,
and the securities in the Underlying Index are updated on the last business day of each
month. |
iShares 1-5 Year Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, investment-grade corporate bonds with remaining maturities between one
and five years. The fund seeks to track the investment results of the ICE BofA 1-5 Year US Corporate
Index (the “Underlying Index”), which measures the performance of investment-grade
corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and
publicly issued in the U.S. domestic market and have a remaining maturity of greater
than or equal to one year and less than five years. As of February 28, 2023, there were
3,667 issues in the Underlying Index. As of February 28, 2023, a significant portion of
the Underlying Index is represented by securities of companies in the financials
industry or sector. The components of the Underlying Index are likely to change over
time. The Underlying Index consists of investment-grade corporate bonds of both U.S. and non-
U.S. issuers that have a remaining maturity of greater than or equal to one year and less
than five years, have been publicly issued in the U.S. domestic market, and have
$250 million or more of outstanding face value. The Index Provider deems securities as
“investment grade” based on the average rating of Fitch Ratings, Inc. (BBB
or better), Moody’s Investors Service, Inc. (Baa or better) and/or Standard &
Poor’s® Financial
Services LLC, a subsidiary of S&P Global (BBB or better). In addition, the securities in
the Underlying Index must be denominated in U.S. dollars and must be fixed-rate.
Excluded from the Underlying Index are equity-linked securities, securities in legal
default, hybrid securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated
securities not issued in the U.S. domestic market), taxable and tax-exempt U.S.
municipal securities and dividends-received-deduction-eligible securities. The
Underlying Index is market capitalization-weighted, and the securities in the Underlying
Index are updated on the last calendar day of each month. Under normal circumstances,
the fund will seek to maintain a weighted average maturity that is less than or equal to
three years. Weighted average maturity is a U.S. dollar-weighted average of the
remaining term to maturity of the underlying securities in the fund’s
portfolio. |
iShares 5-10 Year Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar- denominated investment-grade corporate bonds with remaining maturities between five and ten years. The fund seeks to track the investment results of the ICE BofA 5-10 Year US Corporate Index (the “Underlying Index”), which measures the performance of investment-grade
corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and
publicly issued in the U.S. domestic market and have a remaining maturity of greater
than or equal to five years and less than ten years. As of February 28, 2023, there were
2,634 issues in the Underlying Index. As of February 28, 2023, a significant portion of
the Underlying Index is represented by securities of companies in the financials industry
or sector. The components of the Underlying Index are likely to change over
time. The Underlying Index
consists of investment-grade corporate bonds of both U.S. and non- U.S. issuers that have
a remaining maturity of greater than or equal to five years and less than ten years,
have been publicly issued in the U.S. domestic market, and have $250 million or more of
outstanding face value. The Index Provider deems securities as “investment
grade” based on the average rating of Fitch Ratings, Inc. (BBB or better),
Moody’s Investors Service, Inc. (Baa or better) and/or Standard & Poor’s® Financial
Services LLC, a subsidiary of S&P Global (BBB or better). In addition, the securities in
the Underlying Index must be denominated in U.S. dollars and must be fixed-rate.
Excluded from the Underlying Index are equity-linked securities, securities in legal
default, hybrid securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated
securities not issued in the U.S. domestic market), taxable and tax-exempt U.S.
municipal securities and dividends-received-deduction-eligible securities. The
Underlying Index is market capitalization-weighted, and the securities in the Underlying
Index are updated on the last calendar day of each month. Under normal circumstances,
the fund will seek to maintain a weighted average maturity that is greater than three
years and lower than 10 years. Weighted average maturity is a U.S. dollar-weighted
average of the remaining term to maturity of the underlying securities in the
fund’s portfolio. |
Fund Name |
Investment Objective and Principal Strategies |
iShares 10+ Year Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated investment-grade corporate bonds with remaining maturities greater than
ten years. The fund seeks to track the investment results of the ICE BofA 10+ Year US Corporate
Index (the “Underlying Index”), which measures the performance of investment-grade
corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and
publicly issued in the U.S. domestic market and have a remaining maturity of greater
than or equal to ten years. As of February 28, 2023, there were 3,530 issues in the
Underlying Index. As of February 28, 2023, a significant portion of the Underlying Index
is represented by securities of companies in the healthcare and utilities industries or
sectors. The components of the Underlying Index are likely to change over time. The Underlying Index consists of investment-grade corporate bonds of both U.S. and non- U.S. issuers that have a remaining maturity of greater than or equal to ten years, have been publicly issued in the U.S. domestic market, and have $250 million or more of outstanding face value. The Index Provider deems securities as “investment grade” based on the average rating of Fitch Ratings, Inc. (BBB or better), Moody’s Investors Service, Inc. (Baa or better) and/or Standard & Poor’s® Financial Services LLC, a
subsidiary of S&P Global (BBB or better). In addition, the securities in the Underlying
Index must be denominated in U.S. dollars and must be fixed-rate. Excluded from the
Underlying Index are equity-linked securities, securities in legal default, hybrid
securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated securities not
issued in the U.S. domestic market), taxable and tax-exempt U.S. municipal securities
and dividends- received-deduction-eligible securities. The Underlying Index is market
capitalization- weighted, and the securities in the Underlying Index are updated on the
last calendar day of each month. Under normal circumstances, the fund will seek to
maintain a weighted average maturity that is greater than ten years. Weighted average
maturity is a U.S. dollar-weighted average of the remaining term to maturity of the
underlying securities in the fund’s portfolio. |
iShares 20+ Year Treasury Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. Treasury
bonds with remaining maturities greater than twenty years. The fund seeks to track the investment results of
the ICE U.S. Treasury 20+ Year Bond Index (the “Underlying Index”), which
measures the performance of public obligations of the U.S. Treasury that have a
remaining maturity greater than or equal to twenty years. As of February 28, 2023, there
were 40 issues in the Underlying Index. The Underlying Index consists of publicly-issued U.S. Treasury securities that have a
remaining maturity greater than or equal to twenty years and have $300 million or more
of outstanding face value, excluding amounts held by the Federal Reserve System. In
addition, the securities in the Underlying Index must be fixed-rate and denominated in
U.S. dollars. Excluded from the Underlying Index are inflation-linked securities, Treasury
bills, cash management bills, any government agency debt issued with or without a
government guarantee and zero-coupon issues that have been stripped from
coupon- paying bonds. The Underlying Index is market value weighted, and the securities
in the Underlying Index are updated on the last business day of each month.
|
iShares Aaa - A Rated Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of Aaa to A, or equivalently rated, fixed rate U.S. dollar-denominated bonds issued by U.S. and non-U.S. corporations. The fund seeks to track the investment results of the Bloomberg U.S. Corporate Aaa - A Capped Index (the “Underlying Index”), which is a subset of the Bloomberg U.S. Corporate Index, which measures the performance of the Aaa – A rated range of the fixed-rate, U.S. dollar-denominated taxable, corporate bond market. The Underlying Index is market capitalization-weighted with a 3% cap on any one issuer and a pro rata distribution of any excess weight across the remaining issuers in the Underlying Index. The Underlying Index includes U.S. dollar-denominated securities publicly-issued by U.S. and non-U.S. industrials, utility and financial corporate issuers, with maturities of one year or more, that have $500 million or more of outstanding face value. Each corporate bond must be registered with the SEC, have been exempt from registration at issuance, or have been offered pursuant to Rule 144A under the Securities Act of 1933, as amended, with registration rights. In addition, only securities rated A3 by Moody’s or higher (or the equivalent on another rating agency’s scale) will be included in the Underlying Index. When ratings from each of Fitch Ratings, Inc., Moody’s and S&P Global
Ratings are available, the median rating is used to determine eligibility. When ratings
|
Fund Name |
Investment Objective and Principal Strategies |
iShares Aaa - A Rated Corporate Bond ETF (continued) |
from only two of the three rating agencies are available, the lower rating is used to
determine eligibility. When a rating from only one of these agencies is available, that
rating is used to determine eligibility. The securities in the Underlying Index are updated
on the last calendar day of each month. The fund will invest in non-U.S. issuers to the
extent necessary for it to track the Underlying Index. As of October 31, 2023, 21.11% of
the Underlying Index was composed of bonds issued by non-U.S. issuers from the following
countries or regions: Australia, Belgium, Bermuda, Canada, China, France, Germany, Hong
Kong, Japan, Mexico, the Netherlands, South Korea, Spain, Switzerland, Taiwan and the
United Kingdom. As of October 31, 2023, a significant portion of the Underlying Index is
represented by securities of companies in the financials industry or sector. The
components of the Underlying Index are likely to change over time. |
iShares Broad USD Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated investment-grade corporate bonds. The fund seeks to track the investment results of
the ICE BofA US Corporate Index (the “Underlying Index”), which measures the
performance of investment-grade corporate bonds of both U.S. and non-U.S. issuers that
are U.S. dollar-denominated and publicly issued in the U.S. domestic market. As of
February 28, 2023, there were 9,831 issues in the Underlying Index. As of February 28,
2023, a significant portion of the Underlying Index is represented by securities of
companies in the financials industry or sector. The components of the Underlying Index
are likely to change over time. The Underlying Index consists of investment-grade corporate bonds of both U.S. and non-
U.S. issuers that have a remaining maturity of greater than or equal to one year, have
been publicly issued in the U.S. domestic market, and have $250 million or more of
outstanding face value. The Index Provider deems securities as “investment grade”
based on the average rating of Fitch Ratings, Inc. (BBB or better), Moody’s
Investors Service, Inc. (Baa or better) and/or Standard & Poor’s® Financial Services LLC, a
subsidiary of S&P Global (BBB or better). In addition, the securities in the Underlying
Index must be denominated in U.S. dollars and must be fixed-rate. Excluded from the
Underlying Index are equity-linked securities, securities in legal default, hybrid
securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated securities not
issued in the U.S. domestic market), taxable and tax-exempt U.S. municipal securities
and dividends- received-deduction-eligible securities. The Underlying Index is market
capitalization- weighted, and the securities in the Underlying Index are updated on the
last calendar day of each month. |
iShares CMBS ETF |
The fund seeks to track the investment results of an index composed of investment-
grade commercial mortgage-backed securities. The fund seeks to track the investment results of
the Bloomberg U.S. CMBS (ERISA Only) Index (the “Underlying Index”), which
measures the performance of investment- grade (as determined by Bloomberg Index Services
Limited) commercial mortgage- backed securities (“CMBS”), which are classes
of securities (known as “certificates”) that represent interests in
“pools” of commercial mortgages. The Underlying Index includes only CMBS that are Employee Retirement Income Security Act of 1974, as amended (“ERISA”) eligible under the underwriter’s exemption, which
will deem ERISA eligible the certificates with the first priority of principal repayment, as
long as certain conditions are met, including the requirement that the certificates be
rated in one of the three highest rating categories by Fitch Ratings, Inc.,
Moody’s Investors Service, Inc. or S&P Global Ratings. The Underlying Index includes investment-grade CMBS that are ERISA eligible with $300 million or more of aggregate outstanding transaction size. In addition, the original aggregate transaction must be $500 million or more and the tranche size must be $25 million or more. CMBS certificates must have an expected life of at least one year and must be either fixed-rate or subject to an interest rate cap equal to the weighted average coupon of the underlying asset pool. Excluded from the Underlying Index are non-ERISA eligible securities, agency transactions and privately issued securities, including those which may be resold in accordance with Rule 144A under the Securities Act of 1933, as amended. The securities in the Underlying Index are updated on the last calendar day of each month. |
iShares Core Dividend Growth ETF |
The fund seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends. |
Fund Name |
Investment Objective and Principal Strategies |
iShares Core Dividend Growth ETF
(continued) |
The fund seeks to track the investment results of the Morningstar® US Dividend Growth
IndexSM (the “Underlying Index”), which is a
dividend dollar-weighted index that seeks to measure the performance of U.S. companies
selected based on a consistent history of growing dividends. The Underlying Index is a
subset of the Morningstar® US Market
IndexSM, which is a broad market index that represents
approximately 97% of the market capitalization of publicly traded U.S. stocks. Eligible
companies must pay a qualified dividend, must have at least five years of uninterrupted
annual dividend growth and their earnings payout ratio must be less than 75%. Companies
that are in the top decile based on dividend yield are excluded from the Underlying
Index prior to the dividend growth and payout ratio screens. The Underlying Index may
include large-, mid- and small-capitalization companies and may change over time. As of
April 30, 2023, a significant portion of the Underlying Index is represented by
securities of companies in the financials, healthcare and technology industries or
sectors. The components of the Underlying Index are likely to change over
time. |
iShares Core High Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high
dividend paying U.S. equities. The fund seeks to track the investment results of the Morningstar® Dividend Yield Focus
IndexSM (the “Underlying Index”), which offers
exposure to high quality U.S.-domiciled companies that have had strong financial health
and an ability to sustain above average dividend payouts. The Underlying Index is a
subset of the Morningstar® US Market
IndexSM, a broad market index that represents approximately
97% of the market capitalization of publicly traded U.S. stocks. The Underlying Index is
composed of qualified income-paying securities that are screened for superior company
quality and financial health as determined by Morningstar, Inc.’s
(“Morningstar” or the “Index Provider”) proprietary index
methodology. Stocks in the Underlying Index represent the top 75 high-yielding stocks
meeting the screening requirements. The Morningstar index methodology determines
“company quality” in accordance with the Morningstar Economic Moat™
rating system, in which companies are assigned a moat rating of “none,”
“narrow” or “wide” based on the prospect of earning above average returns on capital and the strength of the company’s competitive advantage. Additionally, companies are screened for “financial health” using Morningstar’s Distance to Default
measure, a quantitative option pricing approach that estimates a company’s probability
of default. To qualify for inclusion in the Underlying Index, constituents must have a
Morningstar Economic Moat rating of “narrow” or “wide” and have
a Morningstar Distance to Default score in the top 50% of eligible dividend-paying
companies within their sector. Companies that are not assigned a Morningstar Economic
Moat rating must have a Morningstar Distance to Default score in the top 30% of eligible
dividend-paying companies within their sector. Additionally, each constituent’s
dividend must be deemed to be qualified income. The Underlying Index may include large-, mid- and
small-capitalization companies and may change over time. As of April 30, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the energy and healthcare industries or sectors. The components of the Underlying Index
are likely to change over time. |
iShares Emerging Markets Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high dividend paying equities in emerging markets. The fund seeks to track the investment results of the Dow Jones Emerging Markets
Select Dividend Index (the “Underlying Index”), which measures the performance of 100
leading dividend-paying emerging-market companies, selected by dividend yield subject
to screening and buffering criteria. Dividend yield is calculated using a stock’s
indicated annual dividend (not including any special dividends) divided by its price.
The starting universe for the Underlying Index is the S&P Emerging BMI, excluding
real estate investment trusts (“REITs”). As of April 30, 2023, the Underlying Index
consisted of issuers in the following countries: Brazil, Chile, China, Czech Republic,
Greece, India, Indonesia, Malaysia, Mexico, the Philippines, Poland, Qatar, South
Africa, Taiwan, Thailand, Turkey and the United Arab Emirates. The Underlying Index
includes large-, mid- and small-capitalization companies and may change over time. As of
April 30, 2023, a significant portion of the Underlying Index is represented by
securities of companies in the basic materials and financials industries or sectors. The
components of the Underlying Index are likely to change over time. |
Fund Name |
Investment Objective and Principal Strategies |
iShares Europe ETF |
The fund seeks to track the investment results of an index composed of European
equities. The fund seeks to track the investment results of the S&P Europe 350TM (the “Underlying
Index”), which measures the performance of the securities of leading companies in the
following countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland,
Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the
United Kingdom. The market capitalization of constituent companies is adjusted to
reflect the available float and, if necessary, any foreign investment restrictions. The
stocks in the Underlying Index are chosen by S&P Dow Jones Indices LLC for market
size, liquidity, industry group representation and geographic diversity. The Underlying
Index is a subset of the S&P Global 1200, which is designed to measure the
performance of large-capitalization stocks from major global markets, as determined by
SPDJI. As of March 31, 2023, a significant portion of the Underlying Index is
represented by securities of companies in the financials and healthcare industries or
sectors. The components of the Underlying Index are likely to change over
time. |
iShares Floating Rate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, investment-grade floating rate bonds with remaining maturities between
one month and five years. The fund seeks to track the investment results of the Bloomberg US Floating Rate Note
˂ 5 Years Index (the “Underlying Index”), which measures the performance of U.S.
dollar-denominated, investment-grade (as determined by Bloomberg Index Services
Limited) floating rate notes. Securities in the Underlying Index have a remaining
maturity of greater than or equal to one month and less than five years, and have $300
million or more of outstanding face value. As of October 31, 2023, a significant portion
of the Underlying Index is represented by securities of companies in the financials
industry or sector. As of October 31, 2023, the Underlying Index was composed of
securities of companies in the following countries or regions: Australia, Canada, China,
Finland, France, Germany, Japan, the Netherlands, New Zealand, Norway, Singapore, South
Korea, Spain, Sweden, Switzerland, the United Kingdom and the U.S. The components of
the Underlying Index are likely to change over time. The Underlying Index consists of debt instruments that pay a variable coupon rate based on a reference rate such as the 3-month London Interbank Offered Rate (“LIBOR”) or the
Secured Overnight Financing Rate (“SOFR”) and a fixed spread. The Underlying Index is
market capitalization-weighted and the securities in the Underlying Index are updated on
the last calendar day of each month. The Underlying Index may include U.S. registered,
dollar-denominated bonds of non-U.S. corporations, governments and supranational
entities. |
iShares iBoxx $ High Yield Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar- denominated, high yield corporate bonds. The fund seeks to track the investment results of the Markit iBoxx® USD Liquid High
Yield Index (the “Underlying Index”), which is a rules-based index consisting of U.S.
dollar-denominated, high yield (as determined by Markit Indices Limited (the
“Index Provider” or “Markit”)) corporate bonds for sale in the
U.S. The Underlying Index is designed to provide a broad representation of the U.S.
dollar-denominated liquid high yield corporate bond market. The Underlying Index is a
modified market-value weighted index with a cap on each issuer of 3%. There is no limit
to the number of issues in the Underlying Index. As of February 28, 2023, the Underlying
Index included approximately 1,175 constituents. As of February 28, 2023, a significant
portion of the Underlying Index is represented by securities of companies in the
consumer services industry or sector. The components of the Underlying Index are likely
to change over time. Bonds in
the Underlying Index are selected from the universe of eligible bonds in the Markit
iBoxx USD Corporate Bond Index using defined rules. As of June 30, 2023, the bonds
eligible for inclusion in the Underlying Index include U.S. dollar-denominated high
yield corporate bonds that: (i) are issued by companies domiciled in countries classified
as developed markets by Markit; (ii) have an average rating of sub-investment grade
(ratings from Fitch Ratings, Inc., Moody’s Investors Service, Inc. or Standard
&
Poor’s®
Global Ratings, a subsidiary of S&P Global are considered; if more than one agency
provides a rating, the average rating is attached to the bond); (iii) are from issuers
with at least $1 billion outstanding face value; (iv) have at least $400 million of
outstanding |
Fund Name |
Investment Objective and Principal Strategies |
iShares iBoxx $ High Yield Corporate Bond ETF (continued) |
face value; (v) have an original maturity date of less than 15 years; (vi) have at least one
year to maturity; and (vii) have at least one year and 6 months to maturity for new
index insertions. |
iShares iBoxx $ Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, investment-grade corporate bonds. The fund seeks to track the investment results of
the Markit iBoxx® USD Liquid
Investment Grade Index (the “Underlying Index”), which is a rules-based
index consisting of U.S. dollar-denominated, investment-grade (as determined by Markit
Indices Limited (“Markit”)) corporate bonds for sale in the U.S. The
Underlying Index is designed to provide a broad representation of the U.S.
dollar-denominated liquid investment-grade corporate bond market. The Underlying Index
is a modified market-value weighted index with a cap on each issuer of 3%. There is no
limit to the number of issues in the Underlying Index. As of February 28, 2023, the
Underlying Index included approximately 2,570 constituents. As of February 28, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the financials industry or sector. The components of the Underlying Index are likely to
change over time. The Underlying Index is a subset of the Markit iBoxx USD Corporate Bond Index, which
as of February 28, 2023 is an index of 7,573 investment-grade bonds. Bonds in the
Underlying Index are selected from the universe of eligible bonds in the Markit iBoxx USD
Corporate Bond Index using defined rules. As of June 30, 2023, the bonds eligible for
inclusion in the Underlying Index consist of U.S. dollar-denominated corporate bonds
that: (i) are issued by companies domiciled in countries classified as developed markets
by Markit; (ii) have an average rating of investment grade (ratings from Fitch Ratings,
Inc., Moody’s Investors Service, Inc. or Standard & Poor’s® Global Ratings, a subsidiary
of S&P Global are considered; if more than one agency provides a rating, the average
rating is attached to the bond); (iii) are from issuers with at least $2 billion outstanding
face value; (iv) have at least $750 million of outstanding face value; (v) have at least
three years to maturity; and (vi) have at least three years and 6 months to maturity for
new index insertions. |
iShares International Developed Real Estate ETF |
The fund seeks to track the investment results of an index composed of real estate
equities in developed non-U.S. markets. The fund seeks to track the investment results of
the FTSE EPRA Nareit Developed ex US Index (the “Underlying Index”), which
measures the performance of companies engaged in the ownership, trading and development
of income-producing real estate in the developed real estate markets (except for the
U.S.) as defined by FTSE EPRA Nareit. As of April 30, 2023, the Underlying Index was
composed of securities of companies in the following countries or regions: Australia,
Austria, Belgium, Canada, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, Luxembourg, the Netherlands, New Zealand, Norway, Singapore, South Korea, Spain,
Sweden, Switzerland and the United Kingdom. As of April 30, 2023, a significant portion
of the Underlying Index includes companies offering various real estate services, real
estate operating companies and REITs. The components of the Underlying Index are likely
to change over time. |
iShares International Select Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets. The fund seeks to track the investment results of the Dow Jones EPAC Select Dividend
Index (the “Underlying Index”), which measures the performance of 100 high
dividend- paying companies in the EPAC (Europe, Pacific, Asia and Canada) region, which
covers developed markets excluding the U.S.. Dividend yield is calculated using a
stock’s indicated annual dividend (not including any special dividends) divided by
its price. S&P Dow Jones Indices LLC (the “Index Provider”) begins with
the S&P EPAC BMI and the S&P Canada BMI indices, excluding REITs. The Index
Provider selects new constituents based on the following criteria: (i) the company must
have paid dividends in each of the previous three years; (ii) the company’s
current year trailing twelve months dividend per share ratio must be greater than or
equal to its three-year average dividend per share ratio; (iii) the company’s
five-year average dividend coverage ratio must be greater than or equal to two-thirds of
the five-year average dividend coverage ratio of the corresponding S&P BMI®
country index, or greater than 118%, whichever is greater; (iv) the company’s
securities must have a three-month average daily dollar trading value of at least $3
million; (v) the company’s securities must have a non-negative trailing 12- month
earnings per share; and (vi) the company’s securities must have a float-adjusted
market capitalization of at least $1 billion. The Index Provider next ranks the stocks
|
Fund Name |
Investment Objective and Principal Strategies |
iShares International Select Dividend ETF (continued) |
based on dividend yield and selects 100 constituents by first including all existing
constituents ranked in the top 200 and next by selecting non-constituent stocks in rank
order. The Underlying Index is weighted based on dividend yield. However, the Index
Provider applies a capping methodology that limits the dividend yield values used to
calculate constituent weights to 20%, the weights of individual securities to the lower of
10% or five times the constituent’s float-adjusted market capitalization weight,
and the aggregate weight of constituents within each Global Industry Classification
Standard (“GICS”) sector and each country of domicile to 30%. The Underlying
Index is reviewed annually; however, component changes may take place on a monthly
basis. As of April 30, 2023, the Underlying Index was composed of securities of companies in
the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Hong Kong, Israel, Italy, Japan, the Netherlands, New Zealand, Norway,
Singapore, South Korea, Spain, Sweden, Switzerland and the United Kingdom. The fund
invests in non-U.S. securities, which may in some cases not produce qualifying dividend
income. The Underlying Index includes large-, mid-and small-capitalization companies
and may change over time. As of April 30, 2023, a significant portion of the Underlying
Index is represented by securities of companies in the financials, industrials and utilities
industries or sectors. The components of the Underlying Index are likely to change over
time. |
iShares J.P. Morgan EM Local Currency Bond ETF |
The fund seeks to track the investment results of an index composed of local currency
denominated, emerging market sovereign bonds. The fund seeks to track the investment results of
the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor Index (the
“Underlying Index”), which tracks the performance of local
currency-denominated sovereign bond markets of emerging market countries. All bonds
included in the Underlying Index are selected according to a set of rule-based inclusion
criteria regarding issue size, bond type, maturity, and liquidity. The securities
included in the Underlying Index are rebalanced on the last weekday of the month.
Eligible countries included in the Underlying Index are determined by JPMorgan Chase
& Co. or its affiliates (the “Index Provider”) based on the Index Provider’s definition of emerging market countries. Eligible issuer countries must have (1) gross
national income (“GNI”) below the Index Income Ceiling (“IIC”)
for three consecutive years or (2) an Index Purchasing Power Parity Ratio (the
“IPR”) below the EM IPR threshold, each as defined by the Index Provider, for
three consecutive years. An existing country may be considered for removal from the
Underlying Index if its GNI per capita is above the IIC for three consecutive years and its
long-term sovereign credit rating from Standard & Poor’s Global Ratings,
Moody’s Investors Service, Inc., and Fitch Ratings, Inc. is A-/A3/A- or above for
three consecutive years. For purposes of compiling the Underlying Index, individual
country weights are capped at maximum 15% and floored at minimum 4.5%. Eligible
individual securities must have a minimum face amount outstanding of U.S. $1 billion
equivalent for onshore local currency bonds and U.S. $500 million for global bonds
(offshore currency linked bonds). All component securities must have at least 2.5 years
to maturity from the inclusion date and a remaining maturity of 6 months or greater at
the time of rebalancing to remain eligible for the Underlying Index. Floating-rate issues, capitalization/amortizing
bonds, and bonds with callable, puttable or convertible features are not eligible for
inclusion in the Underlying Index. As of October 31, 2023, the Underlying Index included securities issued by Brazil, Chile, China, Colombia, Czech Republic, Dominican Republic, Egypt, Hungary, Indonesia, Malaysia, Mexico, Peru, Poland, Romania, Serbia, South Africa, Thailand, Turkey and Uruguay. |
iShares J.P. Morgan USD Emerging Markets Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar- denominated, emerging market bonds. The fund seeks to track the investment results of the J.P. Morgan EMBI® Global Core
Index (the “Underlying Index”), which is a broad, diverse U.S. dollar-denominated
emerging markets debt benchmark that tracks the total return of actively traded external
debt instruments in emerging market countries. The methodology is designed to
distribute the weight of each country within the Underlying Index by limiting the
weights of countries with higher debt outstanding and reallocating this excess to
countries with lower debt outstanding. |
Fund Name |
Investment Objective and Principal Strategies |
iShares J.P. Morgan USD Emerging Markets Bond ETF (continued) |
The Underlying Index was composed of 54 countries as of October 31, 2023. As of
October 31, 2023, the Underlying Index’s five highest weighted countries were
Indonesia, Mexico, Saudi Arabia, Turkey and the United Arab Emirates. The Underlying Index may change its composition
and weighting monthly upon rebalancing. The Underlying Index includes both fixed-rate
and floating-rate instruments issued by sovereign and quasi-sovereign entities from
index-eligible countries. Quasi- sovereign entities are defined as entities that are 100%
guaranteed or 100% owned by the national government and reside in the index-eligible
country. To be considered for inclusion in the Underlying Index, instruments must: (i)
be denominated in U.S. dollars, (ii) have a current face amount outstanding of $1
billion or more, (iii) have at least 2.5 years until maturity to be eligible for
inclusion and, at each subsequent rebalance, have at least one year until maturity to
remain in the index, (iv) be able to settle internationally through Euroclear or another
institution domiciled outside the issuing country and (v) have bid and offer prices that
are available on a daily and timely basis sourced from a third party valuation vendor.
As of October 31, 2023, the Underlying Index consisted of both investment-grade and
non-investment-grade bonds (commonly referred to as “junk bonds”), each as
defined by JPMorgan Chase & Co. (the “Index Provider”). Convertible
bonds are not eligible for inclusion in the Underlying Index. The Underlying Index is
market value-weighted and is rebalanced monthly on the last business day of the month.
Eligible issuer countries must have (1) gross national income below the Index Income
Ceiling for three consecutive years or (2) an Index Purchasing Power Parity Ratio below
the emerging market IPR threshold, each as defined by the Index Provider, for three
consecutive years. |
iShares MBS ETF |
The fund seeks to track the investment results of an index composed of investment-
grade mortgage-backed pass-through securities issued and/or guaranteed by U.S.
government agencies. The fund seeks to track the investment results of the Bloomberg U.S. MBS Index (the
“Underlying Index”), which measures the performance of investment-grade (as
determined by Bloomberg Index Services Limited) mortgage-backed pass-through
securities (“MBS”) issued or guaranteed by U.S. government agencies or sponsored
entities. The Underlying Index includes fixed-rate MBS issued by the Government
National Mortgage Association, Federal National Mortgage Association and Federal
Home Loan Mortgage Corporation that have 30-, 20-, or 15-year maturities. All securities
in the Underlying Index must have a remaining weighted average maturity of at least one
year. In addition, the securities in the Underlying Index must be denominated in U.S.
dollars and must be non-convertible. The Underlying Index is market
capitalization- weighted and the securities in the Underlying Index are updated on the
last business day of each month. As of February 28, 2023, approximately 100% of the bonds represented in the Underlying Index were U.S. agency MBS. Most transactions in MBS occur through standardized contracts for future delivery in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement (TBA transactions). The fund may enter into such contracts for fixed-rate pass-through securities on a regular basis. The fund, pending settlement of such contracts, will invest its assets in liquid, short-term instruments, including shares of money market funds advised by BlackRock Fund Advisors or its affiliates. The fund will assume its pro rata share of the fees and expenses of any money market fund that it may invest in, in addition to the fund’s own fees and expenses. The fund may also acquire interests in mortgage pools through means other than such standardized contracts for future delivery. |
iShares MSCI USA Min Vol Factor ETF |
The fund seeks to track the investment results of an index composed of U.S. equities that, in the aggregate, have lower volatility characteristics relative to the broader U.S. equity market. The fund seeks to track the investment results of the MSCI USA Minimum Volatility (USD) Index (the “Underlying Index”), which has been developed by MSCI Inc. (“MSCI”)
to measure the performance of large- and mid-capitalization equity securities listed on
stock exchanges in the U.S. that, in the aggregate, have lower volatility relative to the
large- and mid-cap U.S. equity market. In constructing the Underlying Index, MSCI uses a
rules-based methodology to select securities from the MSCI USA Index (the “Parent
Index”), which is a capitalization-weighted index, and to determine the weightings
of such securities. In order to determine weightings of securities within the Underlying
Index, MSCI seeks to optimize the Parent Index such that the resulting portfolio
exhibits the |
Fund Name |
Investment Objective and Principal Strategies |
iShares MSCI USA Min Vol Factor ETF
(continued) |
lowest absolute volatility, as measured by MSCI, while applying constraints based on
turnover, minimum and maximum weightings of index constituents, sectors and
countries, as well as factor constraints (for example, liquidity and financial leverage) as
measured by MSCI. The Underlying Index includes large- and
mid-capitalization companies and may change over time. As of July 31, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the healthcare and technology industries or sectors. The components of the Underlying
Index are likely to change over time. |
iShares Preferred and Income Securities ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated preferred and hybrid securities. The fund seeks to track the investment results of
the ICE Exchange-Listed Preferred & Hybrid Securities Index (the “Underlying
Index”), which measures the performance of a select group of exchange-listed, U.S.
dollar-denominated preferred securities, hybrid securities and convertible preferred
securities listed on the New York Stock Exchange or the Nasdaq Capital Market. The
Underlying Index includes issuances of preferred stocks with amounts outstanding over
$100 million, convertible preferred stock with at least $50 million face amount
outstanding, and hybrid securities with at least $250 million face amount outstanding,
that meet minimum maturity and other requirements, as applicable, as determined by ICE
Data Indices, LLC (the “Index Provider” or “ICE Data”). In general, preferred stock is a class of equity
security that pays a specified dividend that must be paid before any dividends can be
paid to common stockholders and takes precedence over common stock in the event of a
company’s liquidation. In general, a “hybrid” security refers to a
security which combines both debt and equity characteristics. In general, hybrid
securities included in the Underlying Index, like traditional preferred stock, have
preference over the common stock within an issuer’s capital structure, and are
issued and traded in a similar manner to traditional preferred stock. Like debt
securities and preferred stock (but unlike common stock), issuers of hybrid securities
included in the Underlying Index may make fixed, periodic payments to the holders of
such securities. Like preferred stock, issuers of hybrid securities included in the
Underlying Index have the ability to defer dividend payments and to extend such
securities’ maturity dates. Although preferred stocks represent a partial ownership
interest in a company, preferred stocks generally do not carry voting rights. Preferred
stocks have economic characteristics similar to fixed-income securities. Preferred
stocks and hybrid securities generally are issued with a fixed par value and pay
dividends based on a percentage of that par value at a fixed or variable rate.
Additionally, preferred stocks and hybrid securities often have a liquidation value that
generally equals the original purchase price of such security at the date of issuance.
The Underlying Index may include many different categories of preferred stock and hybrid
securities, such as floating and fixed rate preferreds, fixed-to-floating rate
securities, callable preferreds, convertible preferreds, cumulative and non-cumulative
preferreds, certain capital securities, trust preferreds or various other preferred
stock and hybrid securities. The total allocation to an individual issuer across the
entire Underlying Index is limited to 4.75%. The Underlying Index uses a market
capitalization weighted methodology subject to certain constraints and is rebalanced
monthly. The Underlying Index may include large-, mid- or small-capitalization companies and
includes preferred stocks and hybrid securities of non-U.S. issuers. As of
March 31, 2023, a significant portion of the Underlying Index is represented by
securities of companies in the financial industry or sector. The components of the
Underlying Index are likely to change over time. |
iShares Select Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities. The fund seeks to track the investment results of the Dow Jones U.S. Select Dividend Index (the “Underlying Index”), which measures the performance of the U.S.’s leading
stocks by dividend yield. Dividend yield is calculated using a stock’s indicated annual
dividend (not including any special dividends) divided by its price. The Underlying
Index is composed of 100 of the highest dividend-yielding securities (excluding REITs)
in the Dow Jones U.S. Index, a broad-based index representative of the total market for
U.S. equity securities. To be included in the Underlying Index, each security (i) must
have a dividend per share greater than or equal to its five-year average dividend per
share; (ii) must have a five-year average dividend coverage ratio of greater than or
equal to 167%; (iii) must have a three-month average daily trading volume of 200,000
shares (100,000 shares |
Fund Name |
Investment Objective and Principal Strategies |
iShares Select Dividend ETF
(continued) |
for current constituents); (iv) must have paid dividends in each of the previous five years;
(v) must have a non-negative trailing 12 month earnings per share; and (vi) must have a
float-adjusted market cap of at least $3 billion ($2 billion for current constituents).
The Underlying Index is reviewed quarterly and rebalanced annually. The Underlying Index includes large-, mid- and
small- capitalization companies and may change over time. As of April 30, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the financials and utilities industry or sector. The components of the Underlying Index
are likely to change over time. |
iShares U.S. Real Estate ETF |
The fund seeks to track the investment results of an index composed of U.S. equities in the real estate sector. The fund seeks to track the investment results of the Dow Jones U.S. Real Estate Capped Index (the “Underlying Index”), which measures the performance of the real estate sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC (the “Index Provider”). The Underlying Index uses a capping methodology to limit the weight of
the securities of any single issuer (as determined by SPDJI) to a maximum of 10% of the
Underlying Index. Additionally, the Underlying Index constrains at each quarterly review:
(i) the weight of any single issuer to a maximum of 10%, and (ii) the aggregate weight
of all issuers that individually exceed 4.50% of the index weight to a maximum of
22.50%. Between scheduled quarterly index reviews, the Underlying Index is rebalanced at
the end of any day on which all issuers that individually constitute more than 5% of the
weight of the Underlying Index constitute more than 25% of the weight of the Underlying
Index in the aggregate. In implementing this capping methodology, the Index Provider
may consider two or more companies as belonging to the same issuer where there is
reasonable evidence of common control. As of March 31, 2023, a significant portion of the
Underlying Index is represented by securities of companies in the real estate investment
trust industry or sector. The components of the Underlying Index are likely to change
over time. |
|
Investor A |
Investor C2,3 |
Institutional |
Availability |
Generally available through Financial Intermediaries. |
Generally available through Financial Intermediaries. Must be held through a Financial Intermediary. |
Limited to certain investors, including:
•Individuals
and “Institutional Investors,” which include, but
are not limited to, endowments,
foundations, family offices,
local, city, and state
governmental institutions,
corporations and insurance
company separate accounts,
who may purchase shares of
the Fund through a Financial
Intermediary that has entered
into an agreement with the
Distributor to purchase such
shares. •Employer-sponsored retirement
plans (not including SEP IRAs,
SIMPLE IRAs or SARSEPs),
state sponsored 529 college
savings plans, collective trust
funds, investment companies
or other pooled investment
vehicles, unaffiliated thrifts and
unaffiliated banks and trust
companies, each of which may
purchase shares of the Fund
through a Financial
Intermediary that has entered
into an agreement with the
Distributor to purchase such
shares. •Employees, officers and
directors/trustees of BlackRock
or its affiliates and immediate
family members of such
persons, if they open an
account directly with
BlackRock. •Participants in certain
programs sponsored by
BlackRock or its affiliates or
other Financial Intermediaries.
•Tax-qualified
accounts for insurance agents that are
registered representatives of
an insurance company’s broker-
dealer that has entered into an
agreement with the Distributor
to offer Institutional Shares,
and the family members of
such persons. •Clients investing through
Financial Intermediaries that
have entered into an
agreement with the Distributor
to offer such shares on a
platform that charges a
transaction based sales
commission outside of the
Fund. |
|
Investor A |
Investor C2,3 |
Institutional |
|
|
|
•Clients
investing through a self- directed IRA brokerage account
program sponsored by a
retirement plan record-keeper,
provided that such program
offers only mutual fund options
and that the program maintains
an account with the Fund on an
omnibus basis. |
Minimum Investment |
$1,000 for all accounts except: •$50, if establishing an
Automatic Investment Plan
(“AIP”).
•There is no investment minimum for employer- sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs). •There is no investment
minimum for certain fee-based
programs. |
$1,000 for all accounts except: •$50, if establishing an AIP.
•There is no investment minimum for employer- sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs or SARSEPs). •There is no investment
minimum for certain fee-based
programs. |
There is no investment minimum for:
•Employer-sponsored
retirement plans (not including SEP IRAs,
SIMPLE IRAs or SARSEPs),
state sponsored 529 college
savings plans, collective trust
funds, investment companies
or other pooled investment
vehicles, unaffiliated thrifts and
unaffiliated banks and trust
companies. •Employees, officers and
directors/trustees of BlackRock
or its affiliates and immediate
family members of such
persons, if they open an
account directly with
BlackRock. •Clients of Financial
Intermediaries that: (i) charge
such clients a fee for advisory,
investment consulting, or
similar services or (ii) have
entered into an agreement with
the Distributor to offer
Institutional Shares through a
no-load program or investment
platform. •Clients investing through a self-
directed IRA brokerage account
program sponsored by a
retirement plan record-keeper,
provided that such program
offers only mutual fund options
and that the program maintains
an account with the Fund on an
omnibus basis. |
|
Investor A |
Investor C2,3 |
Institutional |
|
|
|
$2 million for individuals and
Institutional Investors.
$1,000 investment minimum for:
•Clients
investing through Financial Intermediaries that
offer such shares on a platform
that charges a transaction
based sales commission
outside of the Fund.
•Tax-qualified
accounts for insurance agents that are
registered representatives of
an insurance company’s broker-
dealer that has entered into an
agreement with the Distributor
to offer Institutional Shares,
and the family members of
such persons. |
Initial Sales Charge? |
Yes. Payable at time of purchase.
Lower sales charges are
available for larger investments. |
No. Entire purchase price is
invested in shares of the Fund. |
No. Entire purchase price is
invested in shares of the Fund. |
Deferred Sales
Charge? |
No. (May be charged for
purchases of $250,000 or more
that are redeemed within 18
months). |
Yes. Payable if you redeem within
one year of purchase. |
No. |
Distribution and
Service (12b-1) Fees? |
No Distribution Fee.
0.25% Annual Service Fee. |
0.75% Annual Distribution Fee.
0.25% Annual Service Fee. |
No. |
Redemption Fees? |
No. |
No. |
No. |
Conversion to Investor A Shares? |
N/A |
Yes, automatically approximately eight years after the date of purchase. It is the Financial Intermediary’s responsibility to ensure that the shareholder is credited with the proper holding period. As of the Effective Date (as defined below), certain Financial Intermediaries, including group retirement recordkeeping platforms, may not have been tracking such holding periods and therefore may not be able to process such conversions. In such instances, the automatic conversion of Investor C Shares to Investor A Shares will occur approximately eight years after the Effective Date. In addition, accounts that do not have a Financial Intermediary associated with them are not eligible to hold Investor C Shares, and any Investor C Shares held in such accounts will be automatically converted to Investor A Shares. |
No. |
|
Investor A |
Investor C2,3 |
Institutional |
Advantage |
Makes sense for investors who
are eligible to have the sales
charge reduced or eliminated or
who have a long-term investment
horizon because there are no
ongoing distribution fees. |
No up-front sales charge so you
start off owning more shares.
These shares may make sense
for investors who have a shorter
investment horizon relative to
Investor A Shares. |
No up-front sales charge so you
start off owning more shares. No
distribution or service fees. |
Disadvantage |
You pay a sales charge up-front, and therefore you start off owning fewer shares. |
You pay ongoing distribution fees each year you own Investor C Shares, which means that over the long term you can expect higher total fees per share than Investor A Shares and, as a result, lower total performance. |
Limited availability. |
Your Investment |
Sales Charge
as a % of
Offering Price |
Sales Charge
as a % of
Your Investment1 |
Dealer
Compensation
as a % of
Offering Price |
Less than $25,000 |
4.00 % |
4.17 % |
3.75 % |
$25,000 but less than $100,000 |
3.75 % |
3.90 % |
3.50 % |
$100,000 but less than $250,000 |
3.50 % |
3.63 % |
3.25 % |
$250,000 and over2 |
0.00 % |
0.00 % |
—
2 |
|
Your Choices |
Important Information for You to Know |
Initial Purchase |
First, select the share class
appropriate for you |
Refer to the “Share Classes at a Glance” table in this prospectus (be
sure to read this prospectus carefully). When you place your initial
order, you must indicate which share class you select (if you do not
specify a share class and do not qualify to purchase Institutional
Shares, you will receive Investor A Shares). Certain factors, such as
the amount of your investment, your time frame for investing, and your
financial goals, may affect which share class you choose. Your
Financial Intermediary can help you determine which share class is
appropriate for you. |
|
Next, determine the amount of your investment |
Refer to the minimum initial investment in the “Share Classes at a Glance” table of this prospectus. Be sure to note the maximum investment amounts in Investor C Shares. See “Account Information — Details About the Share Classes” for information on a lower initial investment requirement for certain Fund investors if their purchase, combined with purchases by other investors received together by the Fund, meets the minimum investment requirement. |
|
Your Choices |
Important Information for You to Know |
Initial Purchase (continued) |
Have your Financial Intermediary
submit your purchase order |
The price of your shares is based on the next calculation of the Fund’s
net asset value after your order is placed. Any purchase orders placed
prior to the close of business on the New York Stock Exchange (the
“NYSE
”) (generally 4:00 p.m. Eastern time) will be priced at the net
asset value determined that day. Certain Financial Intermediaries,
however, may require submission of orders prior to that time. Purchase
orders placed after that time will be priced at the net asset value
determined on the next business day. A broker-dealer or financial institution
maintaining the account in which you hold shares may charge a separate account, service
or transaction fee on the purchase or sale of Fund shares that would be in addition to
the fees and expenses shown in the Fund’s “Fees and Expenses”
table. The Fund may reject any order to buy shares and may suspend the sale
of shares at any time. Certain Financial Intermediaries may charge a
processing fee to confirm a purchase. |
|
Or contact BlackRock (for
accounts held directly with
BlackRock) |
To purchase shares directly from BlackRock, call (800) 441-7762 and
request a new account application. Mail the completed application
along with a check payable to “BlackRock Funds” to the Transfer Agent
at the address on the application. The Fund limits purchases by
personal check to $500,000 per trade. |
Add to Your Investment |
Purchase additional shares |
For Investor A and Investor C Shares, the minimum investment for
additional purchases is generally $50 for all accounts (with the
exception of certain employer-sponsored retirement plans which may
have a lower minimum for additional purchases). The minimums for
additional purchases may be waived under certain circumstances.
Institutional Shares have no minimum for additional purchases. |
|
Have your Financial Intermediary
submit your purchase order for
additional shares |
To purchase additional shares you may contact your Financial
Intermediary. For more details on purchasing by Internet see below. |
|
Or contact BlackRock (for accounts held directly with BlackRock) |
Purchase by Telephone: Call (800) 441-7762 and speak with one of
our representatives. The Fund has the right to reject any telephone
request for any reason. Purchase in Writing: You may send a written request to BlackRock at the address on the back cover of this prospectus.
Purchase by VRU: Investor Shares may also be purchased by use of the Fund’s automated voice response unit (“VRU”) service at (800) 441-7762. Purchase by Internet: You may purchase your shares and view activity in your account by logging onto the BlackRock website at www.blackrock.com. Purchases made on the Internet using the Automated Clearing House (“ACH”) will have a trade date that is the day after the purchase is made. Certain institutional clients’ purchase orders of Institutional Shares placed by wire prior to the close of business on the NYSE will be priced at the net asset value determined that day. Contact your Financial Intermediary or BlackRock for further information. The Fund limits Internet purchases in shares of the Fund to $25,000 per trade. Different maximums may apply to certain institutional investors. Please read the On-Line Services Disclosure Statement and User
Agreement, the Terms and Conditions page and the Consent to
Electronic Delivery Agreement (if you consent to electronic delivery),
before attempting to transact online. The Fund employs reasonable procedures to confirm that transactions entered over the Internet are genuine. By entering into the User Agreement with the Fund in order to open an account through the website, the shareholder waives any right to reclaim any losses from the Fund or any of its affiliates incurred through fraudulent activity. |
|
Your Choices |
Important Information for You to Know |
Add to Your Investment (continued) |
Acquire additional shares by
reinvesting dividends and capital
gains |
All dividends and capital gains distributions are automatically
reinvested without a sales charge. To make any changes to your
dividend and/or capital gains distributions options, please call
(800)
441-7762 or contact your Financial Intermediary (if your account is not held directly with BlackRock). |
|
Participate in the AIP |
BlackRock’s AIP allows you to invest a specific amount on a periodic
basis from your checking or savings account into your investment
account. Refer to the “Account Services and Privileges” section of this
prospectus for additional information. |
How to Pay for Shares |
Making payment for purchases |
Payment for an order must be made in Federal funds or other immediately available funds by the time specified by your Financial Intermediary, but in no event later than 4:00 p.m. (Eastern time) on the second business day (in the case of Investor Shares) or the first business day (in the case of Institutional Shares) following BlackRock’s receipt of the order. If payment is not received by this time, the order will be canceled and you and your Financial Intermediary will be responsible for any loss to the Fund. For shares purchased directly from the Fund, a check payable to
BlackRock Funds which bears the name of the Fund must accompany a
completed purchase application. The Fund limits purchases by personal
check to $500,000 per trade. There is a $20 fee for each purchase
check that is returned due to insufficient funds. The Fund does not
accept third-party checks. You may also wire Federal funds to the Fund
to purchase shares, but you must call (800) 441-7762 before doing so
to confirm the wiring instructions. |
|
Your Choices |
Important Information for You to Know |
Full or Partial Redemption of Shares |
Have your Financial Intermediary
submit your sales order |
You can make redemption requests through your Financial
Intermediary. Shareholders should indicate whether they are
redeeming Investor A, Investor C or Institutional Shares. The price of
your shares is based on the next calculation of the Fund’s net asset
value after your order is placed. For your redemption request to be
priced at the net asset value on the day of your request, you must
submit your request to your Financial Intermediary prior to that day’s
close of business on the NYSE (generally 4:00 p.m. Eastern time).
Certain Financial Intermediaries, however, may require submission of
orders prior to that time. Any redemption request placed after that time
will be priced at the net asset value at the close of business on the
next business day. Regardless of the method the Fund uses to make payment of your
redemption proceeds (check, wire or ACH), your redemption proceeds
typically will be sent one to two business days after your request is
submitted, but in any event, within seven days. Certain Financial Intermediaries may charge a fee
to process a redemption of shares. The Fund may reject an order to sell shares under certain circumstances. |
|
Selling shares held directly with BlackRock |
Methods of Redeeming Redeem by Telephone: You may redeem Investor Shares held directly with BlackRock by telephone request if certain conditions are met and if the amount being sold is less than (i) $100,000 for payments by check or (ii) $250,000 for payments through ACH or wire transfer. Certain redemption requests, such as those in excess of these amounts, must be in writing with a medallion signature guarantee. For Institutional Shares, certain redemption requests may require written instructions with a medallion signature guarantee. Call (800) 441-7762 for details. You can obtain a medallion signature guarantee
stamp from a bank, securities dealer, securities broker, credit union, savings and loan
|
|
Your Choices |
Important Information for You to Know |
Full or Partial Redemption of Shares (continued) |
Selling shares held directly with BlackRock (continued) |
association, national securities exchange or registered securities association. A notary public seal will not be acceptable. The Fund, its administrators and the Distributor will employ reasonable
procedures to confirm that instructions communicated by telephone are
genuine. The Fund and its service providers will not be liable for any
loss, liability, cost or expense for acting upon telephone instructions
that are reasonably believed to be genuine in accordance with such
procedures. The Fund may refuse a telephone redemption request if it
believes it is advisable to do so. During periods of substantial economic or market
change, telephone redemptions may be difficult to complete. Please find alternative
redemption methods below. Redeem by VRU: Investor Shares may also be redeemed by use of the Fund’s automated VRU service. Payment for Investor Shares redeemed by the VRU service may be made for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire. Redeem by Internet: You may redeem in your account by logging onto the BlackRock website at www.blackrock.com. Proceeds from Internet redemptions may be sent via check, ACH or wire to the bank account of record. Payment for Investor Shares redeemed by Internet may be made for non-retirement accounts in amounts up to $25,000, either through check, ACH or wire. Different maximums may apply to investors in Institutional Shares. Redeem in Writing: You may sell shares held at BlackRock by writing
to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429 or
for overnight delivery, Attention: 534429, 500 Ross Street 154-0520,
Pittsburgh, Pennsylvania 15262. All shareholders on the account must
sign the letter. A medallion signature guarantee will generally be
required but may be waived in certain limited circumstances. You can
obtain a medallion signature guarantee stamp from a bank, securities
dealer, securities broker, credit union, savings and loan association,
national securities exchange or registered securities association. A
notary public seal will not be acceptable. If you hold stock certificates,
return the certificates with the letter. Proceeds from redemptions may
be sent via check, ACH or wire to the bank account of record. Payment of Redemption
Proceeds Redemption proceeds may be paid by check or, if the Fund has verified
banking information on file, through ACH or by wire transfer. Payment by Check: BlackRock will normally mail redemption proceeds within three business days following receipt of a properly completed request, but in any event within seven days. Shares can be redeemed by telephone and the proceeds sent by check to the shareholder at the address on record. Shareholders will pay $15 for redemption proceeds sent by check via overnight mail. You are responsible for any additional charges imposed by your bank for this service. The Fund reserves the right to reinvest any dividend or distribution
amounts (e.g., income dividends or capital gains) which you have
elected to receive by check should your check be returned as
undeliverable or remain uncashed for more than 6 months. No interest
will accrue on amounts represented by uncashed checks. Your check
will be reinvested in your account at the net asset value next
calculated, on the day of the investment. When reinvested, those
amounts are subject to the risk of loss like any Fund investment. If you
elect to receive distributions in cash and a check remains undeliverable
or uncashed for more than 6 months, your cash election may also be
changed automatically to reinvest and your future dividend and capital
gains distributions will be reinvested in the Fund at the net asset value
as of the date of payment of the distribution. Payment by Wire Transfer: Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally made in Federal funds wired to the redeeming |
|
Your Choices |
Important Information for You to Know |
Full or Partial Redemption of Shares (continued) |
Selling shares held directly with
BlackRock (continued) |
shareholder on the next business day, provided that the Fund’s
custodian is also open for business. Payment for redemption orders
received after
4:00 p.m. (Eastern time) or on a day when the Fund’s
custodian is closed is normally wired in Federal funds on the next
business day following redemption on which the Fund’s custodian is
open for business. The Fund reserves the right to wire redemption
proceeds within seven days after receiving a redemption order if, in the
judgment of the Fund, an earlier payment could adversely affect the
Fund. If a shareholder has given authorization for expedited redemption,
shares can be redeemed by Federal wire transfer to a single previously
designated bank account. Shareholders will pay $7.50 for redemption
proceeds sent by Federal wire transfer. You are responsible for any
additional charges imposed by your bank for this service. No charge for
wiring redemption payments with respect to Institutional Shares is
imposed by the Fund. The Fund is not responsible for the efficiency of the Federal wire
system or the shareholder’s firm or bank. To change the name of the
single, designated bank account to receive wire redemption proceeds, it
is necessary to send a written request to the Fund at the address on
the back cover of this prospectus. Payment by ACH: Redemption proceeds may be sent to the shareholder’s bank account (checking or savings) via ACH. Payment for redeemed shares for which a redemption order is received before 4:00 p.m. (Eastern time) on a business day is normally sent to the
redeeming shareholder the next business day, with receipt at the
receiving bank within the next two business days (48-72 hours),
provided that the Fund’s custodian is also open for business. Payment
for redemption orders received after 4:00 p.m. (Eastern time) or on a
day when the Fund’s custodian is closed is normally sent on the next
business day following redemption on which the Fund’s custodian is
open for business. The Fund reserves the right to send redemption proceeds within seven
days after receiving a redemption order if, in the judgment of the Fund,
an earlier payment could adversely affect the Fund. No charge for
sending redemption payments via ACH is imposed by the Fund.
*** If you make a redemption request before the Fund has collected payment for the purchase of shares, the Fund may delay mailing your proceeds. This delay will usually not exceed ten days. |
Redemption Proceeds |
|
Under normal circumstances, the Fund expects to meet redemption requests by using cash or cash equivalents in its portfolio or by selling portfolio assets to generate cash. During periods of stressed market conditions, when a significant portion of the Fund’s portfolio may be comprised of less-liquid investments, the Fund may be more likely to limit cash redemptions and may determine to pay redemption proceeds by (i) borrowing under a line of credit it has entered into with a group of lenders, (ii) borrowing from another BlackRock Fund pursuant to an interfund lending program, to the extent permitted by the Fund’s investment policies and restrictions as set forth in the SAI, and/or (iii) transferring portfolio securities in-kind to you. The SAI includes more information about the Fund’s line of credit and interfund lending program, to the extent applicable. If the Fund pays redemption proceeds by transferring portfolio securities in-kind to you, you may pay transaction costs to dispose of the securities, and you may receive less for them than the price at which they were valued for purposes of redemption. |
|
Your Choices |
Important Information for You to Know |
Exchange Privilege
|
Selling shares of one BlackRock
Fund to purchase shares of
another BlackRock Fund
(“exchanging”) |
Investor or Institutional Shares of the Fund are generally exchangeable
for shares of the same class of another BlackRock Fund, to the extent
such shares are offered by your Financial Intermediary. You can exchange $1,000 or more of Investor Shares from one fund into the same class of another fund which offers that class of shares (you can exchange less than $1,000 of Investor Shares if you already have an account in the fund into which you are exchanging). Investors who currently own Institutional Shares of the Fund may make exchanges into Institutional Shares of other BlackRock Funds except for investors holding shares through certain client accounts at Financial Intermediaries that are omnibus with the Fund and do not meet applicable minimums. There is no required minimum amount with respect to exchanges of Institutional Shares. You may only exchange into a share class and fund that are open to new investors or in which you have a current account if the fund is closed to new investors. Some of the BlackRock Funds impose a different initial or deferred sales charge schedule. The CDSC will continue to be measured from the date of the original purchase. The CDSC schedule applicable to your original purchase will apply to the shares you receive in the exchange and any subsequent exchange. To exercise the exchange privilege, you may contact your Financial Intermediary. Alternatively, if your account is held directly with BlackRock, you may: (i) call (800) 441-7762 and speak with one of our representatives, (ii) make the exchange via the Internet by accessing your account online at www.blackrock.com, or (iii) send a written request to the Fund at the address on the back cover of this prospectus. Please note, if you indicated on your new account application that you did not want the Telephone Exchange Privilege, you will not be able to place exchanges via the telephone until you update this option either in writing or by calling (800) 441-7762. The Fund has
the right to reject any telephone request for any reason. Although there is currently no limit on the number
of exchanges that you can make, the exchange privilege may be modified or terminated at
any time in the future. The Fund may suspend or terminate your
exchange privilege at any time for any reason, including if the Fund
believes, in its sole discretion, that you are engaging in market timing
activities. See “Short-Term Trading Policy” below. For U.S. federal
income tax purposes a share exchange is a taxable event and a capital
gain or loss may be realized. Please consult your tax adviser or other
Financial Intermediary before making an exchange request. |
Transfer Shares to Another Financial Intermediary |
Transfer to a participating
Financial Intermediary |
You may transfer your shares of the Fund only to another Financial
Intermediary that has entered into an agreement with the Distributor.
Certain shareholder services may not be available for the transferred
shares. All future trading of these assets must be coordinated by the
receiving firm. If your account is held directly with BlackRock, you may call
(800)
441-7762 with any questions; otherwise please contact your Financial Intermediary to accomplish the transfer of shares. |
|
Transfer to a non-participating Financial Intermediary |
You must either:
•Transfer
your shares to an account with the Fund; or •Sell your shares, paying any applicable deferred sales charge. If your account is held directly with BlackRock, you may call
(800)
441-7762 with any questions; otherwise please contact your Financial Intermediary to accomplish the transfer of shares. |
Automatic Investment Plan
|
Allows systematic investments
on a periodic basis from your
checking or savings account. |
BlackRock’s AIP allows you to invest a specific amount on a periodic
basis from your checking or savings account into your investment
account. You may apply for this option upon account opening or by
completing the AIP application. The minimum investment amount for
an automatic investment is $50 per portfolio. |
Dividend Allocation Plan |
Automatically invests your
distributions into another
BlackRock Fund of your choice
pursuant to your instructions,
without any fees or sales
charges. |
Dividend and capital gains distributions may be reinvested in your
account to purchase additional shares or paid in cash. Using the
Dividend Allocation Plan, you can direct your distributions to your bank
account (checking or savings), to purchase shares of another fund at
BlackRock without any fees or sales charges, or by check to a special
payee. Please call (800) 441-7762 for details. If investing in another
fund at BlackRock, the receiving fund must be open to new purchases. |
EZ Trader |
Allows an investor to purchase or
sell Investor Shares by telephone
or over the Internet through ACH. |
(NOTE: This option is offered to shareholders whose accounts are held
directly with BlackRock. Please speak with your Financial Intermediary
if your account is held elsewhere.) Prior to establishing an EZ Trader account, please
contact your bank to confirm that it is a member of the ACH system. Once confirmed,
complete an application, making sure to include the appropriate bank
information, and return the application to the address listed on the
form. Prior to placing a telephone or Internet purchase or sale order, please
call (800)
441-7762 to confirm that your bank information has been updated on your account. Once this is established, you may place your request to sell shares with the Fund by telephone or Internet. Proceeds will be sent to your pre-designated bank account. |
Systematic Exchange Plan |
This feature can be used by
investors to systematically
exchange money from one fund
to up to four other funds. |
A minimum of $10,000 in the initial BlackRock Fund is required, and
investments in any additional funds must meet minimum initial
investment requirements. |
Systematic Withdrawal Plan
|
This feature can be used by investors who want to receive regular distributions from their accounts. |
To start an SWP, a shareholder must have a current investment of $10,000 or more in a BlackRock Fund. Shareholders can elect to receive cash payments of $50 or more at any interval they choose. Shareholders may sign up by completing the SWP Application Form, which may be obtained from BlackRock. Shareholders should realize that if withdrawals exceed income the invested principal in their account will be depleted. To participate in the SWP, shareholders must have their dividends reinvested. Shareholders may change or cancel the SWP at any time, with a minimum of 24 hours’ notice. If a shareholder purchases additional Investor A Shares of a fund at the same time he or she redeems shares through the SWP, that investor may lose money because of the sales charge involved. No CDSC will be assessed on redemptions of Investor A or Investor C Shares made through the SWP that do not exceed 12% of the account’s net asset value on an annualized basis. For example, monthly, quarterly, and semi-annual SWP redemptions of Investor A or Investor C Shares will not be subject to the CDSC if they do not exceed 1%, 3% and 6%, respectively, of an account’s net asset value on the redemption date. SWP redemptions of Investor A or Investor C Shares in excess of this limit will still pay any applicable CDSC. Ask your Financial Intermediary for details. |
Reinstatement Privilege |
|
If you redeem Investor A or Institutional Shares and buy new Investor A Shares of the same or another BlackRock Fund (equal to all or a portion of the redemption amount) within 90 days of such redemption, you will not pay a sales charge on the new purchase amount. This right may be exercised within 90 days of the redemption, provided that the Investor A Share class of that fund is currently open to new investors or the shareholder has a current account in that closed fund. Shares will be purchased at the net asset value calculated at the close of trading on the day the request is received. To exercise this privilege, the Fund must receive written notification from the shareholder of record or the Financial Intermediary of record, at the time of purchase. Investors should consult a tax adviser concerning the tax consequences of exercising this reinstatement privilege. |
Average Daily Net Assets |
Rate of
Management Fee |
First $1 billion |
0.35 % |
$1 billion – $2 billion |
0.34 % |
$2 billion – $3 billion |
0.33 % |
Greater than $3 billion |
0.32 % |
|
Contractual Caps1 on
Other Expenses2 (excluding Dividend Expense, Interest Expense and certain other Fund expenses) |
Investor A Shares |
0.09 % |
Investor C Shares |
0.09 % |
Institutional Shares |
0.09 % |
Portfolio Manager |
Primary Role |
Since |
Title and Recent Biography |
Justin Christofel, CFA |
Jointly and primarily responsible for
the day-to-day management of the
Fund’s portfolio, including setting the
Fund’s overall investment strategy
and overseeing the management of
the Fund. |
2016 |
Managing Director of BlackRock, Inc. since
2016; Director of BlackRock, Inc. from 2013
to 2015; Vice President of BlackRock, Inc.
from 2010 to 2013; Associate of BlackRock,
Inc. from 2008 to 2010; Analyst of BlackRock,
Inc. from 2007 to 2008. |
Alex Shingler, CFA |
Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. |
2016 |
Managing Director of BlackRock, Inc. since 2011; Director of BlackRock, Inc. from 2009 to 2010; Senior Vice President at R3 Capital Partners from 2008 to 2009. |
|
BlackRock Managed Income Fund | ||||
|
Institutional | ||||
(For a share outstanding throughout each period) |
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Net asset value, beginning of year |
$8.95 |
$10.31 |
$10.28 |
$10.08 |
$9.56 |
Net investment income(a) |
0.47 |
0.38 |
0.33 |
0.35 |
0.39 |
Net realized and unrealized gain (loss) |
0.43 |
(1.34 ) |
0.24 |
0.21 |
0.52 |
Net increase (decrease) from investment operations
|
0.90 |
(0.96 ) |
0.57 |
0.56 |
0.91 |
Distributions(b)
|
|
|
|
|
|
From net investment income |
(0.47 ) |
(0.39 ) |
(0.34 ) |
(0.34 ) |
(0.39 ) |
From net realized gain |
— |
(0.01 ) |
(0.20 ) |
(0.02 ) |
— |
Total distributions |
(0.47 ) |
(0.40 ) |
(0.54 ) |
(0.36 ) |
(0.39 ) |
Net asset value, end of year |
$9.38 |
$8.95 |
$10.31 |
$10.28 |
$10.08 |
Total
Return(c) |
|
|
|
|
|
Based on net asset value |
10.31 % |
(9.27 )% |
5.61 % |
5.78 % |
9.63 % |
Ratios to Average Net Assets(d) |
|
|
|
|
|
Total expenses |
0.63 % |
0.60 % |
0.61 % |
0.62 % |
0.59 % |
Total expenses after fees waived and/or reimbursed
|
0.39 % |
0.41 % |
0.40 % |
0.38 % |
0.34 % |
Net investment income |
5.12 % |
4.06 % |
3.17 % |
3.51 % |
3.90 % |
Supplemental Data |
|
|
|
|
|
Net assets, end of year (000) |
$342,754 |
$340,824 |
$447,218 |
$317,679 |
$199,220 |
Portfolio turnover rate(e) |
65 % |
60 % |
45 % |
76 % |
71 % |
|
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Portfolio turnover rate (including equity-linked notes)
|
95 % |
103 % |
88 % |
94 % |
91 % |
|
BlackRock Managed Income Fund | ||||
|
Investor A | ||||
(For a share outstanding throughout each period) |
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Net asset value, beginning of year |
$8.95 |
$10.31 |
$10.28 |
$10.08 |
$9.56 |
Net investment income(a) |
0.44 |
0.36 |
0.30 |
0.32 |
0.36 |
Net realized and unrealized gain (loss) |
0.43 |
(1.34 ) |
0.24 |
0.22 |
0.52 |
Net increase (decrease) from investment operations
|
0.87 |
(0.98 ) |
0.54 |
0.54 |
0.88 |
Distributions(b)
|
|
|
|
|
|
From net investment income |
(0.44 ) |
(0.37 ) |
(0.31 ) |
(0.32 ) |
(0.36 ) |
From net realized gain |
— |
(0.01 ) |
(0.20 ) |
(0.02 ) |
— |
Total distributions |
(0.44 ) |
(0.38 ) |
(0.51 ) |
(0.34 ) |
(0.36 ) |
Net asset value, end of year |
$9.38 |
$8.95 |
$10.31 |
$10.28 |
$10.08 |
Total
Return(c) |
|
|
|
|
|
Based on net asset value |
10.03 % |
(9.51 )% |
5.36 % |
5.51 % |
9.36 % |
Ratios to Average Net Assets(d) |
|
|
|
|
|
Total expenses |
0.83 % |
0.81 % |
0.82 % |
0.83 % |
0.80 % |
Total expenses after fees waived and/or reimbursed
|
0.64 % |
0.66 % |
0.65 % |
0.62 % |
0.59 % |
Net investment income |
4.87 % |
3.83 % |
2.91 % |
3.27 % |
3.65 % |
Supplemental Data |
|
|
|
|
|
Net assets, end of year (000) |
$303,048 |
$322,849 |
$401,138 |
$261,322 |
$190,848 |
Portfolio turnover rate(e) |
65 % |
60 % |
45 % |
76 % |
71 % |
|
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Portfolio turnover rate (including equity-linked notes)
|
95 % |
103 % |
88 % |
94 % |
91 % |
|
BlackRock Managed Income Fund | ||||
|
Investor C | ||||
(For a share outstanding throughout each period) |
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Net asset value, beginning of year |
$8.96 |
$10.31 |
$10.29 |
$10.09 |
$9.56 |
Net investment income(a) |
0.38 |
0.29 |
0.23 |
0.25 |
0.29 |
Net realized and unrealized gain (loss) |
0.42 |
(1.33 ) |
0.23 |
0.21 |
0.53 |
Net increase (decrease) from investment operations
|
0.80 |
(1.04 ) |
0.46 |
0.46 |
0.82 |
Distributions(b)
|
|
|
|
|
|
From net investment income |
(0.37 ) |
(0.30 ) |
(0.24 ) |
(0.24 ) |
(0.29 ) |
From net realized gain |
— |
(0.01 ) |
(0.20 ) |
(0.02 ) |
— |
Total distributions |
(0.37 ) |
(0.31 ) |
(0.44 ) |
(0.26 ) |
(0.29 ) |
Net asset value, end of year |
$9.39 |
$8.96 |
$10.31 |
$10.29 |
$10.09 |
Total
Return(c) |
|
|
|
|
|
Based on net asset value |
9.18 % |
(10.12 )% |
4.50 % |
4.72 % |
8.65 % |
Ratios to Average Net Assets(d) |
|
|
|
|
|
Total expenses |
1.60 % |
1.59 % |
1.59 % |
1.60 % |
1.58 % |
Total expenses after fees waived and/or reimbursed
|
1.39 % |
1.41 % |
1.40 % |
1.37 % |
1.34 % |
Net investment income |
4.12 % |
3.08 % |
2.18 % |
2.54 % |
2.89 % |
Supplemental Data |
|
|
|
|
|
Net assets, end of year (000) |
$21,541 |
$23,296 |
$29,565 |
$26,419 |
$23,347 |
Portfolio turnover rate(e) |
65 % |
60 % |
45 % |
76 % |
71 % |
|
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Portfolio turnover rate (including equity-linked notes) |
95 % |
103 % |
88 % |
94 % |
91 % |
|
Prospectus |
Key facts and details about the Fund listed in this prospectus, including
investment objectives, principal investment strategies, principal
risk factors, fee and expense information and
historical performance information
|
| |
|
3 | |
|
3 | |
|
4 | |
|
4 | |
|
15 | |
|
15 | |
|
16 | |
|
16 | |
|
16 | |
|
16 |
17 | ||
|
18 | |
|
40 |
Information about account services, sales charges and waivers,
shareholder transactions, and distributions and other
payments |
| |
|
54 | |
|
55 | |
|
60 | |
|
60 |
Information about BlackRock and the Portfolio Managers |
| |
|
62 | |
|
63 | |
|
64 | |
|
64 | |
|
66 |
Financial Performance of the Fund |
68 | |
|
|
69 | ||
|
69 | |
|
70 |
Glossary of Investment Terms |
71 | |
|
|
Inside Back Cover | ||
|
Back Cover |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) |
|
Class K Shares |
Management Fee1 |
|
0.35 % |
Distribution and/or Service (12b-1) Fees |
|
None |
Other Expenses2 |
|
0.19 % |
Acquired Fund Fees and Expenses3 |
|
0.09 % |
Total Annual Fund Operating Expenses3 |
|
0.63 % |
Fee Waivers and/or Expense Reimbursements1,2 |
|
(0.20 )% |
Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements1,2 |
|
0.43 % |
|
1 Year |
3 Years |
5 Years |
10 Years |
Class K Shares |
$44 |
$182 |
$331 |
$767 |
For the periods ended 12/31/23
Average Annual Total Returns |
1 Year |
5 Years |
10 Years |
BlackRock Managed Income Fund — Class K Shares |
|
|
|
Return Before Taxes |
10.35 % |
4.23 % |
4.13 % |
Return After Taxes on Distributions |
8.15 % |
2.44 % |
2.47 % |
Return After Taxes on Distributions and Sale of Fund Shares |
6.15 % |
2.54 % |
2.52 % |
Bloomberg U.S. Aggregate Bond Index
(Reflects no deduction for fees, expenses or taxes) |
5.53 % |
1.10 % |
1.81 % |
Customized Reference Benchmark (Reflects no deduction for fees, expenses or taxes) |
11.48 % |
5.58 % |
5.00 % |
Portfolio Manager |
Portfolio Manager of the Fund Since |
Title |
Justin Christofel, CFA |
2016 |
Managing Director of BlackRock, Inc. |
Alex Shingler, CFA |
2016 |
Managing Director of BlackRock, Inc. |
Fund Name |
Investment Objective and Principal Strategies |
|
|
BlackRock Floating Rate Income Portfolio |
The primary investment objective of the fund is to seek to provide high current income,
with a secondary objective of long-term capital appreciation. The fund normally invests at least 80% of its
assets in floating rate investments and investments that are the economic equivalent of
floating rate investments, which effectively enables the fund to achieve a floating rate
of income. These investments may include, but are not limited to, any combination of the
following securities: (i) senior secured floating rate loans or debt; (ii) second lien
or other subordinated or unsecured floating rate loans or debt; and (iii) fixed-rate
loans or debt with respect to which the fund has entered into derivative instruments to
effectively convert the fixed-rate interest payments into floating rate interest
payments. The fund may also purchase, without limitation, participations or assignments
in senior floating rate loans or second lien floating rate loans. For purposes of the fund’s investments, the
term debt includes investments in convertible or preferred securities.
The fund may invest in investments of any
credit quality without limitation, including investments rated below investment grade.
The fund anticipates that, under current market conditions, a substantial portion of its
portfolio will consist of leveraged loans rated below investment grade and similar
investments. These investments are expected to exhibit credit risks similar to high
yield securities, which are commonly referred to as “junk
bonds.” The fund may
invest up to 20% of its assets in fixed-income securities with respect to which the fund
has not entered into derivative instruments to effectively convert the fixed-rate
interest payments into floating-rate interest payments. Such fixed-income securities
include, but are not limited to, corporate bonds, preferred securities, convertible
securities, mezzanine investments, collateralized loan obligations, senior loans, second
lien loans, structured products and U.S. government debt securities. The fund’s investments in any floating rate and fixed-income securities may be of any duration or maturity. The fund may invest in securities of foreign issuers, including issuers located in emerging markets, without limitation. The fund may also invest up to 15% of its net assets in illiquid investments. The fund may also invest in companies whose financial condition is uncertain, where the
borrower has defaulted in the payment of interest or principal or in the performance of
its covenants or agreements, or that may be involved in bankruptcy proceedings,
reorganizations or financial restructurings. The fund may invest up to 10% of its assets in
common stocks or other equity securities. In addition, the fund may acquire and hold
such securities (or rights to acquire such securities) in unit offerings with
fixed-income securities, in connection with an amendment, waiver, conversion or exchange
of fixed-income securities, in connection with the bankruptcy or workout of a distressed
fixed-income security, or upon the exercise of a right or warrant obtained on account of
a fixed-income security. The
fund may buy or sell options or futures on a security or an index of securities, buy or
sell options on futures or enter into credit default swaps and interest rate or foreign
currency transactions, including swaps and forward contracts (collectively, commonly
known as derivatives). The fund may use derivatives for hedging purposes, but is not
required to, as well as to increase the total return on its portfolio investments. |
BlackRock Global Dividend Portfolio |
The investment objective of the fund is to seek to provide a level of current income that exceeds the average yield on global stocks generally. Additionally, the fund seeks to provide long-term capital appreciation. |
Fund Name |
Investment Objective and Principal Strategies |
BlackRock Global Dividend Portfolio (continued) |
Under normal circumstances, the fund will invest at least 80% of its net assets in
dividend-paying equity securities and at least 40% of its assets outside of the United
States (unless market conditions are not deemed favorable by fund management, in
which case the fund would invest at least 30% of its assets outside of the United
States). The fund will primarily invest in common stock, preferred stock, securities
convertible into common and preferred stock and non-convertible preferred stock. The
fund may invest in securities of non-U.S. issuers that can be U.S. dollar based or non-
U.S. dollar based. The fund may invest in securities of companies of any market
capitalization, but intends to invest primarily in securities of large capitalization
companies. The combination of equity securities will be varied from time to time both
with respect to types of securities and markets in response to changing market and
economic trends. The fund may invest in shares of companies through IPOs and “new
issues.” The fund may invest up to 20% of its net assets in global fixed-income securities,
including corporate bonds, U.S. Government debt securities, non-U.S. Government and
supranational debt securities (an example of such an entity is the International Bank for
Reconstruction and Development (the “World Bank”)), asset-backed securities,
mortgage-backed securities, corporate loans, emerging market debt securities and
non- investment grade debt securities (high yield or junk bonds). Investment in
fixed-income securities will be made on an opportunistic basis. The fund may invest in
fixed-income securities of any duration or maturity. The fund has no geographic limits in where it may
invest and has no specific policy on the number of different countries in which it will
invest. The fund may invest in both developed and emerging markets. The fund may
emphasize foreign securities when fund management expects these investments to
outperform U.S. securities. The fund may use derivatives, including options, futures,
swaps and forward contracts both to seek to increase the return of the fund or to hedge
(or protect) the value of its assets against adverse movements in currency exchange
rates, interest rates and movements in the securities markets. The fund may enter into
currency transactions on a hedged or unhedged basis in order to seek total
return. The Fund may use
indexed and inverse securities. Under normal circumstances, the fund anticipates it will allocate a substantial amount
(at least 40% or more — unless market conditions are not deemed favorable by fund
management, in which case the fund would invest at least 30%) of its total assets in
foreign securities, which may include securities (i) of foreign government issuers, (ii) of
issuers organized or located outside the United States, (iii) of issuers which primarily
trade in a market located outside the United States, or (iv) of issuers doing a
substantial amount of business outside the United States, which the fund considers to be
companies that derive at least 50% of their revenue or profits from business outside the
United States or have at least 50% of their sales or assets outside the United States.
The fund will allocate its assets among various regions and countries, including the
United States (but in no less than three different countries). For temporary defensive
purposes the fund may deviate very substantially from this allocation.
The fund may engage in active and frequent
trading of portfolio securities to achieve its principal investment
strategies. |
BlackRock GNMA Portfolio |
The investment objective of the fund is to seek to maximize total return, consistent with income generation and prudent investment management. Under normal circumstances, the fund invests at least 80% of its assets in GNMA
securities. The fund invests primarily in securities issued by GNMA as well as other U.S.
Government securities. Securities purchased by the fund are rated in the highest rating category (AAA or Aaa) at the time of purchase by at least one major rating agency or are determined by the fund management team to be of similar quality. Split rated bonds will be considered to have the higher credit rating. Split rated bonds are bonds that receive different ratings from two or more rating agencies. The fund measures its performance against the Bloomberg GNMA Total Return Index Value Unhedged USD (the benchmark). Under normal circumstances, the fund seeks to maintain an average portfolio duration that is within ±1 year of the duration of the benchmark. The fund also makes investments in residential and commercial mortgage-backed securities and other asset-backed securities. |
Fund Name |
Investment Objective and Principal Strategies |
BlackRock GNMA Portfolio (continued) |
The fund may buy or sell options or futures on a security or an index of securities, or
enter into credit default swaps and interest rate transactions, including swaps
(collectively, commonly known as derivatives). The fund may seek to obtain market
exposure to the securities in which it primarily invests by entering into a series of
purchase and sale contracts or by using other investment techniques (such as reverse
repurchase agreements or dollar rolls). The fund may engage in active and frequent trading
of portfolio securities to achieve its primary investment strategies.
|
BlackRock High Equity Income Fund |
The investment objective of the fund is to seek high current income while maintaining
prospects for capital appreciation. The fund seeks to achieve its investment objective
by investing primarily in a diversified portfolio of equity securities. Under normal
circumstances, the fund will invest at least 80% of its net assets, plus the amount of
any borrowings for investment purposes, in equity securities and equity-related
instruments, including equity-linked notes. The fund may invest in securities of
companies with any market capitalization, but will generally focus on large cap
securities. The fund may invest up to 50% of its assets in equity- linked notes that
provide exposure to equity securities and covered call options or other types of
financial instruments. With
respect to the fund’s equity investments, the fund may invest in common stock,
preferred stock, securities convertible into common and preferred stock, non-convertible
preferred stock and depositary receipts. The fund generally intends to invest in dividend
paying stocks. From time to time, the fund may invest in shares of companies through
IPOs. The fund may invest in securities from any country, including emerging markets.
The fund may invest in securities denominated in both U.S. dollars and non-U.S. dollar
currencies. BlackRock chooses investments for the fund that it believes will provide
current income and current gains. The fund’s portfolio, in the aggregate, will
be structured in a manner designed to deliver high current income while maintaining
prospects for capital appreciation. The fund intends to employ a strategy of writing (selling) covered call and put options on common stocks, indices of securities, sectors of securities and baskets of securities, primarily through structured notes. This option strategy is intended to generate current gains from option premiums as a means to enhance distributions payable to the fund’s shareholders. As the fund writes more covered call options, its ability to benefit from capital appreciation becomes more limited and the fund’s total return may deviate more from the returns of the Russell 1000® Value Index, an all equity benchmark. The fund seeks to produce a high level of current income from dividends and from option writing premiums. The fund may invest in master limited partnerships that are generally in energy- and financial-related industries and in U.S. and non-U.S. real estate investment trusts, as well as structured products, including equity-linked notes, to maximize the fund’s current
income. The fund may engage in active and frequent trading of portfolio securities to achieve its
primary investment strategies. |
BlackRock High Yield Bond Portfolio |
The investment objective of the fund is to seek to maximize total return, consistent with income generation and prudent investment management. The fund invests primarily in non-investment grade bonds with maturities of ten years or
less. The fund normally invests at least 80% of its assets in high yield bonds. The high
yield securities (commonly called “junk bonds”) acquired by the fund will generally be in
the lower rating categories of the major rating agencies (BB or lower by S&P Global
Ratings or Fitch Ratings, Inc. or Ba or lower by Moody’s Investor Services) or
will be determined by the fund management team to be of similar quality. Split rated
bonds and other fixed-income securities (securities that receive different ratings from
two or more rating agencies) are valued as follows: if three agencies rate a security,
the security will be considered to have the median credit rating; if two of the three
agencies rate a security, the security will be considered to have the lower credit
rating. The fund may invest up to 30% of its assets in non-dollar denominated bonds of
issuers located outside of the United States. The fund’s investment in non-dollar
denominated bonds may be on a currency hedged or unhedged basis. The fund may also
invest in convertible and preferred securities. Convertible debt securities will be
counted toward the fund’s 80% policy to the extent they have characteristics
similar to the securities included within that policy. |
Fund Name |
Investment Objective and Principal Strategies |
BlackRock High Yield Bond Portfolio
(continued) |
To add additional diversification, the management team can invest in a wide range of
securities including corporate bonds, mezzanine investments, collateralized bond
obligations, bank loans and mortgage-backed and asset-backed securities. The High
Yield Fund can also invest, to the extent consistent with its investment objective, in
non- U.S. and emerging market securities and currencies. The High Yield Fund may invest
in securities of any rating, and may invest up to 10% of its assets (measured at the
time of investment) in distressed securities that are in default or the issuers of which
are in bankruptcy. The fund may buy or sell options or futures on a
security or an index of securities, or enter into credit default swaps and interest rate
or foreign currency transactions, including swaps (collectively, commonly known as
derivatives). The fund may use derivative instruments to hedge its investments or to
seek to enhance returns. The fund may seek to obtain market exposure to the securities
in which it primarily invests by entering into a series of purchase and sale contracts
or by using other investment techniques (such as reverse repurchase agreements or dollar
rolls). The fund may engage in
active and frequent trading of portfolio securities to achieve its principal investment
strategies. |
|
|
Fund Name |
Investment Objective and Principal Strategies |
|
|
iShares 0-5 Year High Yield Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, high yield corporate bonds with remaining maturities of less than five
years. The fund seeks to track the investment results of the Markit iBoxx® USD Liquid High
Yield 0-5 Index (the “Underlying Index”), which is designed to reflect the performance of
U.S. dollar-denominated high yield (as determined by Markit Indices Limited (the
“Index Provider” or “Markit”)) corporate debt. High yield bonds
are also known as “junk bonds” and are generally rated below
investment-grade. The Underlying Index offers exposure to liquid (according to
Markit’s liquidity screens, which could vary from other measures of liquidity)
U.S. dollar-denominated high yield corporate bonds maturing between zero and five years
and is rebalanced on a monthly basis. Only bonds with $350 million minimum face value
per bond are included in the Underlying Index, provided they are trading at a minimum
price in accordance with Markit’s liquidity screens. The Underlying Index uses a
market-value weighted methodology with a cap on each issuer of 3%. As of October 31,
2023, a significant portion of the Underlying Index is represented by securities of
companies in the consumer services and industrials industries or sectors. The components
of the Underlying Index are likely to change over time. |
iShares 1-3 Year Treasury Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between one and three years. The fund seeks to track the investment results of the ICE U.S. Treasury 1-3 Year Bond
Index (the “Underlying Index”), which measures the performance of public obligations of
the U.S. Treasury that have a remaining maturity of greater than or equal to one year
and less than three years. As of February 28, 2023, there were 94 issues in the
Underlying Index. The Underlying Index consists of publicly-issued U.S. Treasury
securities that have a remaining maturity of greater than or equal to one year and less
than three years and have $300 million or more of outstanding face value, excluding
amounts held by the Federal Reserve System. In addition, the securities in the
Underlying Index must be fixed-rate and denominated in U.S. dollars. Excluded from the
Underlying Index are inflation-linked securities, Treasury bills, cash management bills,
any government agency debt issued with or without a government guarantee and zero-coupon
issues that have |
Fund Name |
Investment Objective and Principal Strategies |
iShares 1-3 Year Treasury Bond ETF
(continued) |
been stripped from coupon-paying bonds. The Underlying Index is market value weighted,
and the securities in the Underlying Index are updated on the last business day of each
month. |
iShares 1-5 Year Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, investment-grade corporate bonds with remaining maturities between one
and five years. The fund seeks to track the investment results of the ICE BofA 1-5 Year US Corporate
Index (the “Underlying Index”), which measures the performance of investment-grade
corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and
publicly issued in the U.S. domestic market and have a remaining maturity of greater
than or equal to one year and less than five years. As of February 28, 2023, there were
3,667 issues in the Underlying Index. As of February 28, 2023, a significant portion of
the Underlying Index is represented by securities of companies in the financials
industry or sector. The components of the Underlying Index are likely to change over
time. The Underlying Index consists of investment-grade corporate bonds of both U.S. and non-
U.S. issuers that have a remaining maturity of greater than or equal to one year and less
than five years, have been publicly issued in the U.S. domestic market, and have
$250 million or more of outstanding face value. The Index Provider deems securities as
“investment grade” based on the average rating of Fitch Ratings, Inc. (BBB
or better), Moody’s Investors Service, Inc. (Baa or better) and/or Standard &
Poor’s® Financial
Services LLC, a subsidiary of S&P Global (BBB or better). In addition, the securities in
the Underlying Index must be denominated in U.S. dollars and must be fixed-rate.
Excluded from the Underlying Index are equity-linked securities, securities in legal
default, hybrid securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated
securities not issued in the U.S. domestic market), taxable and tax-exempt U.S.
municipal securities and dividends-received-deduction-eligible securities. The
Underlying Index is market capitalization-weighted, and the securities in the Underlying
Index are updated on the last calendar day of each month. Under normal circumstances,
the fund will seek to maintain a weighted average maturity that is less than or equal to
three years. Weighted average maturity is a U.S. dollar-weighted average of the
remaining term to maturity of the underlying securities in the fund’s
portfolio. |
iShares 5-10 Year Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar- denominated investment-grade corporate bonds with remaining maturities between five and ten years. The fund seeks to track the investment results of the ICE BofA 5-10 Year US Corporate Index (the “Underlying Index”), which measures the performance of investment-grade
corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and
publicly issued in the U.S. domestic market and have a remaining maturity of greater
than or equal to five years and less than ten years. As of February 28, 2023, there were
2,634 issues in the Underlying Index. As of February 28, 2023, a significant portion of
the Underlying Index is represented by securities of companies in the financials industry
or sector. The components of the Underlying Index are likely to change over
time. The Underlying Index
consists of investment-grade corporate bonds of both U.S. and non- U.S. issuers that have
a remaining maturity of greater than or equal to five years and less than ten years,
have been publicly issued in the U.S. domestic market, and have $250 million or more of
outstanding face value. The Index Provider deems securities as “investment
grade” based on the average rating of Fitch Ratings, Inc. (BBB or better),
Moody’s Investors Service, Inc. (Baa or better) and/or Standard & Poor’s® Financial
Services LLC, a subsidiary of S&P Global (BBB or better). In addition, the securities in
the Underlying Index must be denominated in U.S. dollars and must be fixed-rate.
Excluded from the Underlying Index are equity-linked securities, securities in legal
default, hybrid securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated
securities not issued in the U.S. domestic market), taxable and tax-exempt U.S.
municipal securities and dividends-received-deduction-eligible securities. The
Underlying Index is market capitalization-weighted, and the securities in the Underlying
Index are updated on the last calendar day of each month. Under normal circumstances,
the fund will seek to maintain a weighted average maturity that is greater than three
years and lower than 10 years. Weighted average maturity is a U.S. dollar-weighted
average of the remaining term to maturity of the underlying securities in the
fund’s portfolio. |
Fund Name |
Investment Objective and Principal Strategies |
iShares 10+ Year Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated investment-grade corporate bonds with remaining maturities greater than
ten years. The fund seeks to track the investment results of the ICE BofA 10+ Year US Corporate
Index (the “Underlying Index”), which measures the performance of investment-grade
corporate bonds of both U.S. and non-U.S. issuers that are U.S. dollar-denominated and
publicly issued in the U.S. domestic market and have a remaining maturity of greater
than or equal to ten years. As of February 28, 2023, there were 3,530 issues in the
Underlying Index. As of February 28, 2023, a significant portion of the Underlying Index
is represented by securities of companies in the healthcare and utilities industries or
sectors. The components of the Underlying Index are likely to change over time. The Underlying Index consists of investment-grade corporate bonds of both U.S. and non- U.S. issuers that have a remaining maturity of greater than or equal to ten years, have been publicly issued in the U.S. domestic market, and have $250 million or more of outstanding face value. The Index Provider deems securities as “investment grade” based on the average rating of Fitch Ratings, Inc. (BBB or better), Moody’s Investors Service, Inc. (Baa or better) and/or Standard & Poor’s® Financial Services LLC, a
subsidiary of S&P Global (BBB or better). In addition, the securities in the Underlying
Index must be denominated in U.S. dollars and must be fixed-rate. Excluded from the
Underlying Index are equity-linked securities, securities in legal default, hybrid
securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated securities not
issued in the U.S. domestic market), taxable and tax-exempt U.S. municipal securities
and dividends- received-deduction-eligible securities. The Underlying Index is market
capitalization- weighted, and the securities in the Underlying Index are updated on the
last calendar day of each month. Under normal circumstances, the fund will seek to
maintain a weighted average maturity that is greater than ten years. Weighted average
maturity is a U.S. dollar-weighted average of the remaining term to maturity of the
underlying securities in the fund’s portfolio. |
iShares 20+ Year Treasury Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. Treasury
bonds with remaining maturities greater than twenty years. The fund seeks to track the investment results of
the ICE U.S. Treasury 20+ Year Bond Index (the “Underlying Index”), which
measures the performance of public obligations of the U.S. Treasury that have a
remaining maturity greater than or equal to twenty years. As of February 28, 2023, there
were 40 issues in the Underlying Index. The Underlying Index consists of publicly-issued U.S. Treasury securities that have a
remaining maturity greater than or equal to twenty years and have $300 million or more
of outstanding face value, excluding amounts held by the Federal Reserve System. In
addition, the securities in the Underlying Index must be fixed-rate and denominated in
U.S. dollars. Excluded from the Underlying Index are inflation-linked securities, Treasury
bills, cash management bills, any government agency debt issued with or without a
government guarantee and zero-coupon issues that have been stripped from
coupon- paying bonds. The Underlying Index is market value weighted, and the securities
in the Underlying Index are updated on the last business day of each month.
|
iShares Aaa - A Rated Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of Aaa to A, or equivalently rated, fixed rate U.S. dollar-denominated bonds issued by U.S. and non-U.S. corporations. The fund seeks to track the investment results of the Bloomberg U.S. Corporate Aaa - A Capped Index (the “Underlying Index”), which is a subset of the Bloomberg U.S. Corporate Index, which measures the performance of the Aaa – A rated range of the fixed-rate, U.S. dollar-denominated taxable, corporate bond market. The Underlying Index is market capitalization-weighted with a 3% cap on any one issuer and a pro rata distribution of any excess weight across the remaining issuers in the Underlying Index. The Underlying Index includes U.S. dollar-denominated securities publicly-issued by U.S. and non-U.S. industrials, utility and financial corporate issuers, with maturities of one year or more, that have $500 million or more of outstanding face value. Each corporate bond must be registered with the SEC, have been exempt from registration at issuance, or have been offered pursuant to Rule 144A under the Securities Act of 1933, as amended, with registration rights. In addition, only securities rated A3 by Moody’s or higher (or the equivalent on another rating agency’s scale) will be included in the Underlying Index. When ratings from each of Fitch Ratings, Inc., Moody’s and S&P Global
Ratings are available, the median rating is used to determine eligibility. When ratings
|
Fund Name |
Investment Objective and Principal Strategies |
iShares Aaa - A Rated Corporate Bond ETF (continued) |
from only two of the three rating agencies are available, the lower rating is used to
determine eligibility. When a rating from only one of these agencies is available, that
rating is used to determine eligibility. The securities in the Underlying Index are updated
on the last calendar day of each month. The fund will invest in non-U.S. issuers to the
extent necessary for it to track the Underlying Index. As of October 31, 2023, 21.11% of
the Underlying Index was composed of bonds issued by non-U.S. issuers from the following
countries or regions: Australia, Belgium, Bermuda, Canada, China, France, Germany, Hong
Kong, Japan, Mexico, the Netherlands, South Korea, Spain, Switzerland, Taiwan and the
United Kingdom. As of October 31, 2023, a significant portion of the Underlying Index is
represented by securities of companies in the financials industry or sector. The
components of the Underlying Index are likely to change over time. |
iShares Broad USD Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated investment-grade corporate bonds. The fund seeks to track the investment results of
the ICE BofA US Corporate Index (the “Underlying Index”), which measures the
performance of investment-grade corporate bonds of both U.S. and non-U.S. issuers that
are U.S. dollar-denominated and publicly issued in the U.S. domestic market. As of
February 28, 2023, there were 9,831 issues in the Underlying Index. As of February 28,
2023, a significant portion of the Underlying Index is represented by securities of
companies in the financials industry or sector. The components of the Underlying Index
are likely to change over time. The Underlying Index consists of investment-grade corporate bonds of both U.S. and non-
U.S. issuers that have a remaining maturity of greater than or equal to one year, have
been publicly issued in the U.S. domestic market, and have $250 million or more of
outstanding face value. The Index Provider deems securities as “investment grade”
based on the average rating of Fitch Ratings, Inc. (BBB or better), Moody’s
Investors Service, Inc. (Baa or better) and/or Standard & Poor’s® Financial Services LLC, a
subsidiary of S&P Global (BBB or better). In addition, the securities in the Underlying
Index must be denominated in U.S. dollars and must be fixed-rate. Excluded from the
Underlying Index are equity-linked securities, securities in legal default, hybrid
securitized corporate bonds, Eurodollar bonds (U.S. dollar-denominated securities not
issued in the U.S. domestic market), taxable and tax-exempt U.S. municipal securities
and dividends- received-deduction-eligible securities. The Underlying Index is market
capitalization- weighted, and the securities in the Underlying Index are updated on the
last calendar day of each month. |
iShares CMBS ETF |
The fund seeks to track the investment results of an index composed of investment-
grade commercial mortgage-backed securities. The fund seeks to track the investment results of
the Bloomberg U.S. CMBS (ERISA Only) Index (the “Underlying Index”), which
measures the performance of investment- grade (as determined by Bloomberg Index Services
Limited) commercial mortgage- backed securities (“CMBS”), which are classes
of securities (known as “certificates”) that represent interests in
“pools” of commercial mortgages. The Underlying Index includes only CMBS that are Employee Retirement Income Security Act of 1974, as amended (“ERISA”) eligible under the underwriter’s exemption, which
will deem ERISA eligible the certificates with the first priority of principal repayment, as
long as certain conditions are met, including the requirement that the certificates be
rated in one of the three highest rating categories by Fitch Ratings, Inc.,
Moody’s Investors Service, Inc. or S&P Global Ratings. The Underlying Index includes investment-grade CMBS that are ERISA eligible with $300 million or more of aggregate outstanding transaction size. In addition, the original aggregate transaction must be $500 million or more and the tranche size must be $25 million or more. CMBS certificates must have an expected life of at least one year and must be either fixed-rate or subject to an interest rate cap equal to the weighted average coupon of the underlying asset pool. Excluded from the Underlying Index are non-ERISA eligible securities, agency transactions and privately issued securities, including those which may be resold in accordance with Rule 144A under the Securities Act of 1933, as amended. The securities in the Underlying Index are updated on the last calendar day of each month. |
iShares Core Dividend Growth ETF |
The fund seeks to track the investment results of an index composed of U.S. equities with a history of consistently growing dividends. |
Fund Name |
Investment Objective and Principal Strategies |
iShares Core Dividend Growth ETF
(continued) |
The fund seeks to track the investment results of the Morningstar® US Dividend Growth
IndexSM (the “Underlying Index”), which is a
dividend dollar-weighted index that seeks to measure the performance of U.S. companies
selected based on a consistent history of growing dividends. The Underlying Index is a
subset of the Morningstar® US Market
IndexSM, which is a broad market index that represents
approximately 97% of the market capitalization of publicly traded U.S. stocks. Eligible
companies must pay a qualified dividend, must have at least five years of uninterrupted
annual dividend growth and their earnings payout ratio must be less than 75%. Companies
that are in the top decile based on dividend yield are excluded from the Underlying
Index prior to the dividend growth and payout ratio screens. The Underlying Index may
include large-, mid- and small-capitalization companies and may change over time. As of
April 30, 2023, a significant portion of the Underlying Index is represented by
securities of companies in the financials, healthcare and technology industries or
sectors. The components of the Underlying Index are likely to change over
time. |
iShares Core High Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high
dividend paying U.S. equities. The fund seeks to track the investment results of the Morningstar® Dividend Yield Focus
IndexSM (the “Underlying Index”), which offers
exposure to high quality U.S.-domiciled companies that have had strong financial health
and an ability to sustain above average dividend payouts. The Underlying Index is a
subset of the Morningstar® US Market
IndexSM, a broad market index that represents approximately
97% of the market capitalization of publicly traded U.S. stocks. The Underlying Index is
composed of qualified income-paying securities that are screened for superior company
quality and financial health as determined by Morningstar, Inc.’s
(“Morningstar” or the “Index Provider”) proprietary index
methodology. Stocks in the Underlying Index represent the top 75 high-yielding stocks
meeting the screening requirements. The Morningstar index methodology determines
“company quality” in accordance with the Morningstar Economic Moat™
rating system, in which companies are assigned a moat rating of “none,”
“narrow” or “wide” based on the prospect of earning above average returns on capital and the strength of the company’s competitive advantage. Additionally, companies are screened for “financial health” using Morningstar’s Distance to Default
measure, a quantitative option pricing approach that estimates a company’s probability
of default. To qualify for inclusion in the Underlying Index, constituents must have a
Morningstar Economic Moat rating of “narrow” or “wide” and have
a Morningstar Distance to Default score in the top 50% of eligible dividend-paying
companies within their sector. Companies that are not assigned a Morningstar Economic
Moat rating must have a Morningstar Distance to Default score in the top 30% of eligible
dividend-paying companies within their sector. Additionally, each constituent’s
dividend must be deemed to be qualified income. The Underlying Index may include large-, mid- and
small-capitalization companies and may change over time. As of April 30, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the energy and healthcare industries or sectors. The components of the Underlying Index
are likely to change over time. |
iShares Emerging Markets Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high dividend paying equities in emerging markets. The fund seeks to track the investment results of the Dow Jones Emerging Markets
Select Dividend Index (the “Underlying Index”), which measures the performance of 100
leading dividend-paying emerging-market companies, selected by dividend yield subject
to screening and buffering criteria. Dividend yield is calculated using a stock’s
indicated annual dividend (not including any special dividends) divided by its price.
The starting universe for the Underlying Index is the S&P Emerging BMI, excluding
real estate investment trusts (“REITs”). As of April 30, 2023, the Underlying Index
consisted of issuers in the following countries: Brazil, Chile, China, Czech Republic,
Greece, India, Indonesia, Malaysia, Mexico, the Philippines, Poland, Qatar, South
Africa, Taiwan, Thailand, Turkey and the United Arab Emirates. The Underlying Index
includes large-, mid- and small-capitalization companies and may change over time. As of
April 30, 2023, a significant portion of the Underlying Index is represented by
securities of companies in the basic materials and financials industries or sectors. The
components of the Underlying Index are likely to change over time. |
Fund Name |
Investment Objective and Principal Strategies |
iShares Europe ETF |
The fund seeks to track the investment results of an index composed of European
equities. The fund seeks to track the investment results of the S&P Europe 350TM (the “Underlying
Index”), which measures the performance of the securities of leading companies in the
following countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland,
Italy, Luxembourg, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the
United Kingdom. The market capitalization of constituent companies is adjusted to
reflect the available float and, if necessary, any foreign investment restrictions. The
stocks in the Underlying Index are chosen by S&P Dow Jones Indices LLC for market
size, liquidity, industry group representation and geographic diversity. The Underlying
Index is a subset of the S&P Global 1200, which is designed to measure the
performance of large-capitalization stocks from major global markets, as determined by
SPDJI. As of March 31, 2023, a significant portion of the Underlying Index is
represented by securities of companies in the financials and healthcare industries or
sectors. The components of the Underlying Index are likely to change over
time. |
iShares Floating Rate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, investment-grade floating rate bonds with remaining maturities between
one month and five years. The fund seeks to track the investment results of the Bloomberg US Floating Rate Note
˂ 5 Years Index (the “Underlying Index”), which measures the performance of U.S.
dollar-denominated, investment-grade (as determined by Bloomberg Index Services
Limited) floating rate notes. Securities in the Underlying Index have a remaining
maturity of greater than or equal to one month and less than five years, and have $300
million or more of outstanding face value. As of October 31, 2023, a significant portion
of the Underlying Index is represented by securities of companies in the financials
industry or sector. As of October 31, 2023, the Underlying Index was composed of
securities of companies in the following countries or regions: Australia, Canada, China,
Finland, France, Germany, Japan, the Netherlands, New Zealand, Norway, Singapore, South
Korea, Spain, Sweden, Switzerland, the United Kingdom and the U.S. The components of
the Underlying Index are likely to change over time. The Underlying Index consists of debt instruments that pay a variable coupon rate based on a reference rate such as the 3-month London Interbank Offered Rate (“LIBOR”) or the
Secured Overnight Financing Rate (“SOFR”) and a fixed spread. The Underlying Index is
market capitalization-weighted and the securities in the Underlying Index are updated on
the last calendar day of each month. The Underlying Index may include U.S. registered,
dollar-denominated bonds of non-U.S. corporations, governments and supranational
entities. |
iShares iBoxx $ High Yield Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar- denominated, high yield corporate bonds. The fund seeks to track the investment results of the Markit iBoxx® USD Liquid High
Yield Index (the “Underlying Index”), which is a rules-based index consisting of U.S.
dollar-denominated, high yield (as determined by Markit Indices Limited (the
“Index Provider” or “Markit”)) corporate bonds for sale in the
U.S. The Underlying Index is designed to provide a broad representation of the U.S.
dollar-denominated liquid high yield corporate bond market. The Underlying Index is a
modified market-value weighted index with a cap on each issuer of 3%. There is no limit
to the number of issues in the Underlying Index. As of February 28, 2023, the Underlying
Index included approximately 1,175 constituents. As of February 28, 2023, a significant
portion of the Underlying Index is represented by securities of companies in the
consumer services industry or sector. The components of the Underlying Index are likely
to change over time. Bonds in
the Underlying Index are selected from the universe of eligible bonds in the Markit
iBoxx USD Corporate Bond Index using defined rules. As of June 30, 2023, the bonds
eligible for inclusion in the Underlying Index include U.S. dollar-denominated high
yield corporate bonds that: (i) are issued by companies domiciled in countries classified
as developed markets by Markit; (ii) have an average rating of sub-investment grade
(ratings from Fitch Ratings, Inc., Moody’s Investors Service, Inc. or Standard
&
Poor’s®
Global Ratings, a subsidiary of S&P Global are considered; if more than one agency
provides a rating, the average rating is attached to the bond); (iii) are from issuers
with at least $1 billion outstanding face value; (iv) have at least $400 million of
outstanding |
Fund Name |
Investment Objective and Principal Strategies |
iShares iBoxx $ High Yield Corporate Bond ETF (continued) |
face value; (v) have an original maturity date of less than 15 years; (vi) have at least one
year to maturity; and (vii) have at least one year and 6 months to maturity for new
index insertions. |
iShares iBoxx $ Investment Grade Corporate Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated, investment-grade corporate bonds. The fund seeks to track the investment results of
the Markit iBoxx® USD Liquid
Investment Grade Index (the “Underlying Index”), which is a rules-based
index consisting of U.S. dollar-denominated, investment-grade (as determined by Markit
Indices Limited (“Markit”)) corporate bonds for sale in the U.S. The
Underlying Index is designed to provide a broad representation of the U.S.
dollar-denominated liquid investment-grade corporate bond market. The Underlying Index
is a modified market-value weighted index with a cap on each issuer of 3%. There is no
limit to the number of issues in the Underlying Index. As of February 28, 2023, the
Underlying Index included approximately 2,570 constituents. As of February 28, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the financials industry or sector. The components of the Underlying Index are likely to
change over time. The Underlying Index is a subset of the Markit iBoxx USD Corporate Bond Index, which
as of February 28, 2023 is an index of 7,573 investment-grade bonds. Bonds in the
Underlying Index are selected from the universe of eligible bonds in the Markit iBoxx USD
Corporate Bond Index using defined rules. As of June 30, 2023, the bonds eligible for
inclusion in the Underlying Index consist of U.S. dollar-denominated corporate bonds
that: (i) are issued by companies domiciled in countries classified as developed markets
by Markit; (ii) have an average rating of investment grade (ratings from Fitch Ratings,
Inc., Moody’s Investors Service, Inc. or Standard & Poor’s® Global Ratings, a subsidiary
of S&P Global are considered; if more than one agency provides a rating, the average
rating is attached to the bond); (iii) are from issuers with at least $2 billion outstanding
face value; (iv) have at least $750 million of outstanding face value; (v) have at least
three years to maturity; and (vi) have at least three years and 6 months to maturity for
new index insertions. |
iShares International Developed Real Estate ETF |
The fund seeks to track the investment results of an index composed of real estate
equities in developed non-U.S. markets. The fund seeks to track the investment results of
the FTSE EPRA Nareit Developed ex US Index (the “Underlying Index”), which
measures the performance of companies engaged in the ownership, trading and development
of income-producing real estate in the developed real estate markets (except for the
U.S.) as defined by FTSE EPRA Nareit. As of April 30, 2023, the Underlying Index was
composed of securities of companies in the following countries or regions: Australia,
Austria, Belgium, Canada, Finland, France, Germany, Hong Kong, Ireland, Israel, Italy,
Japan, Luxembourg, the Netherlands, New Zealand, Norway, Singapore, South Korea, Spain,
Sweden, Switzerland and the United Kingdom. As of April 30, 2023, a significant portion
of the Underlying Index includes companies offering various real estate services, real
estate operating companies and REITs. The components of the Underlying Index are likely
to change over time. |
iShares International Select Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high dividend paying equities in non-U.S. developed markets. The fund seeks to track the investment results of the Dow Jones EPAC Select Dividend
Index (the “Underlying Index”), which measures the performance of 100 high
dividend- paying companies in the EPAC (Europe, Pacific, Asia and Canada) region, which
covers developed markets excluding the U.S.. Dividend yield is calculated using a
stock’s indicated annual dividend (not including any special dividends) divided by
its price. S&P Dow Jones Indices LLC (the “Index Provider”) begins with
the S&P EPAC BMI and the S&P Canada BMI indices, excluding REITs. The Index
Provider selects new constituents based on the following criteria: (i) the company must
have paid dividends in each of the previous three years; (ii) the company’s
current year trailing twelve months dividend per share ratio must be greater than or
equal to its three-year average dividend per share ratio; (iii) the company’s
five-year average dividend coverage ratio must be greater than or equal to two-thirds of
the five-year average dividend coverage ratio of the corresponding S&P BMI®
country index, or greater than 118%, whichever is greater; (iv) the company’s
securities must have a three-month average daily dollar trading value of at least $3
million; (v) the company’s securities must have a non-negative trailing 12- month
earnings per share; and (vi) the company’s securities must have a float-adjusted
market capitalization of at least $1 billion. The Index Provider next ranks the stocks
|
Fund Name |
Investment Objective and Principal Strategies |
iShares International Select Dividend ETF (continued) |
based on dividend yield and selects 100 constituents by first including all existing
constituents ranked in the top 200 and next by selecting non-constituent stocks in rank
order. The Underlying Index is weighted based on dividend yield. However, the Index
Provider applies a capping methodology that limits the dividend yield values used to
calculate constituent weights to 20%, the weights of individual securities to the lower of
10% or five times the constituent’s float-adjusted market capitalization weight,
and the aggregate weight of constituents within each Global Industry Classification
Standard (“GICS”) sector and each country of domicile to 30%. The Underlying
Index is reviewed annually; however, component changes may take place on a monthly
basis. As of April 30, 2023, the Underlying Index was composed of securities of companies in
the following countries: Australia, Austria, Belgium, Canada, Denmark, Finland, France,
Germany, Hong Kong, Israel, Italy, Japan, the Netherlands, New Zealand, Norway,
Singapore, South Korea, Spain, Sweden, Switzerland and the United Kingdom. The fund
invests in non-U.S. securities, which may in some cases not produce qualifying dividend
income. The Underlying Index includes large-, mid-and small-capitalization companies
and may change over time. As of April 30, 2023, a significant portion of the Underlying
Index is represented by securities of companies in the financials, industrials and utilities
industries or sectors. The components of the Underlying Index are likely to change over
time. |
iShares J.P. Morgan EM Local Currency Bond ETF |
The fund seeks to track the investment results of an index composed of local currency
denominated, emerging market sovereign bonds. The fund seeks to track the investment results of
the J.P. Morgan GBI-EM Global Diversified 15% Cap 4.5% Floor Index (the
“Underlying Index”), which tracks the performance of local
currency-denominated sovereign bond markets of emerging market countries. All bonds
included in the Underlying Index are selected according to a set of rule-based inclusion
criteria regarding issue size, bond type, maturity, and liquidity. The securities
included in the Underlying Index are rebalanced on the last weekday of the month.
Eligible countries included in the Underlying Index are determined by JPMorgan Chase
& Co. or its affiliates (the “Index Provider”) based on the Index Provider’s definition of emerging market countries. Eligible issuer countries must have (1) gross
national income (“GNI”) below the Index Income Ceiling (“IIC”)
for three consecutive years or (2) an Index Purchasing Power Parity Ratio (the
“IPR”) below the EM IPR threshold, each as defined by the Index Provider, for
three consecutive years. An existing country may be considered for removal from the
Underlying Index if its GNI per capita is above the IIC for three consecutive years and its
long-term sovereign credit rating from Standard & Poor’s Global Ratings,
Moody’s Investors Service, Inc., and Fitch Ratings, Inc. is A-/A3/A- or above for
three consecutive years. For purposes of compiling the Underlying Index, individual
country weights are capped at maximum 15% and floored at minimum 4.5%. Eligible
individual securities must have a minimum face amount outstanding of U.S. $1 billion
equivalent for onshore local currency bonds and U.S. $500 million for global bonds
(offshore currency linked bonds). All component securities must have at least 2.5 years
to maturity from the inclusion date and a remaining maturity of 6 months or greater at
the time of rebalancing to remain eligible for the Underlying Index. Floating-rate issues, capitalization/amortizing
bonds, and bonds with callable, puttable or convertible features are not eligible for
inclusion in the Underlying Index. As of October 31, 2023, the Underlying Index included securities issued by Brazil, Chile, China, Colombia, Czech Republic, Dominican Republic, Egypt, Hungary, Indonesia, Malaysia, Mexico, Peru, Poland, Romania, Serbia, South Africa, Thailand, Turkey and Uruguay. |
iShares J.P. Morgan USD Emerging Markets Bond ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar- denominated, emerging market bonds. The fund seeks to track the investment results of the J.P. Morgan EMBI® Global Core
Index (the “Underlying Index”), which is a broad, diverse U.S. dollar-denominated
emerging markets debt benchmark that tracks the total return of actively traded external
debt instruments in emerging market countries. The methodology is designed to
distribute the weight of each country within the Underlying Index by limiting the
weights of countries with higher debt outstanding and reallocating this excess to
countries with lower debt outstanding. |
Fund Name |
Investment Objective and Principal Strategies |
iShares J.P. Morgan USD Emerging Markets Bond ETF (continued) |
The Underlying Index was composed of 54 countries as of October 31, 2023. As of
October 31, 2023, the Underlying Index’s five highest weighted countries were
Indonesia, Mexico, Saudi Arabia, Turkey and the United Arab Emirates. The Underlying Index may change its composition
and weighting monthly upon rebalancing. The Underlying Index includes both fixed-rate
and floating-rate instruments issued by sovereign and quasi-sovereign entities from
index-eligible countries. Quasi- sovereign entities are defined as entities that are 100%
guaranteed or 100% owned by the national government and reside in the index-eligible
country. To be considered for inclusion in the Underlying Index, instruments must: (i)
be denominated in U.S. dollars, (ii) have a current face amount outstanding of $1
billion or more, (iii) have at least 2.5 years until maturity to be eligible for
inclusion and, at each subsequent rebalance, have at least one year until maturity to
remain in the index, (iv) be able to settle internationally through Euroclear or another
institution domiciled outside the issuing country and (v) have bid and offer prices that
are available on a daily and timely basis sourced from a third party valuation vendor.
As of October 31, 2023, the Underlying Index consisted of both investment-grade and
non-investment-grade bonds (commonly referred to as “junk bonds”), each as
defined by JPMorgan Chase & Co. (the “Index Provider”). Convertible
bonds are not eligible for inclusion in the Underlying Index. The Underlying Index is
market value-weighted and is rebalanced monthly on the last business day of the month.
Eligible issuer countries must have (1) gross national income below the Index Income
Ceiling for three consecutive years or (2) an Index Purchasing Power Parity Ratio below
the emerging market IPR threshold, each as defined by the Index Provider, for three
consecutive years. |
iShares MBS ETF |
The fund seeks to track the investment results of an index composed of investment-
grade mortgage-backed pass-through securities issued and/or guaranteed by U.S.
government agencies. The fund seeks to track the investment results of the Bloomberg U.S. MBS Index (the
“Underlying Index”), which measures the performance of investment-grade (as
determined by Bloomberg Index Services Limited) mortgage-backed pass-through
securities (“MBS”) issued or guaranteed by U.S. government agencies or sponsored
entities. The Underlying Index includes fixed-rate MBS issued by the Government
National Mortgage Association, Federal National Mortgage Association and Federal
Home Loan Mortgage Corporation that have 30-, 20-, or 15-year maturities. All securities
in the Underlying Index must have a remaining weighted average maturity of at least one
year. In addition, the securities in the Underlying Index must be denominated in U.S.
dollars and must be non-convertible. The Underlying Index is market
capitalization- weighted and the securities in the Underlying Index are updated on the
last business day of each month. As of February 28, 2023, approximately 100% of the bonds represented in the Underlying Index were U.S. agency MBS. Most transactions in MBS occur through standardized contracts for future delivery in which the exact mortgage pools to be delivered are not specified until a few days prior to settlement (TBA transactions). The fund may enter into such contracts for fixed-rate pass-through securities on a regular basis. The fund, pending settlement of such contracts, will invest its assets in liquid, short-term instruments, including shares of money market funds advised by BlackRock Fund Advisors or its affiliates. The fund will assume its pro rata share of the fees and expenses of any money market fund that it may invest in, in addition to the fund’s own fees and expenses. The fund may also acquire interests in mortgage pools through means other than such standardized contracts for future delivery. |
iShares MSCI USA Min Vol Factor ETF |
The fund seeks to track the investment results of an index composed of U.S. equities that, in the aggregate, have lower volatility characteristics relative to the broader U.S. equity market. The fund seeks to track the investment results of the MSCI USA Minimum Volatility (USD) Index (the “Underlying Index”), which has been developed by MSCI Inc. (“MSCI”)
to measure the performance of large- and mid-capitalization equity securities listed on
stock exchanges in the U.S. that, in the aggregate, have lower volatility relative to the
large- and mid-cap U.S. equity market. In constructing the Underlying Index, MSCI uses a
rules-based methodology to select securities from the MSCI USA Index (the “Parent
Index”), which is a capitalization-weighted index, and to determine the weightings
of such securities. In order to determine weightings of securities within the Underlying
Index, MSCI seeks to optimize the Parent Index such that the resulting portfolio
exhibits the |
Fund Name |
Investment Objective and Principal Strategies |
iShares MSCI USA Min Vol Factor ETF
(continued) |
lowest absolute volatility, as measured by MSCI, while applying constraints based on
turnover, minimum and maximum weightings of index constituents, sectors and
countries, as well as factor constraints (for example, liquidity and financial leverage) as
measured by MSCI. The Underlying Index includes large- and
mid-capitalization companies and may change over time. As of July 31, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the healthcare and technology industries or sectors. The components of the Underlying
Index are likely to change over time. |
iShares Preferred and Income Securities ETF |
The fund seeks to track the investment results of an index composed of U.S. dollar-
denominated preferred and hybrid securities. The fund seeks to track the investment results of
the ICE Exchange-Listed Preferred & Hybrid Securities Index (the “Underlying
Index”), which measures the performance of a select group of exchange-listed, U.S.
dollar-denominated preferred securities, hybrid securities and convertible preferred
securities listed on the New York Stock Exchange or the Nasdaq Capital Market. The
Underlying Index includes issuances of preferred stocks with amounts outstanding over
$100 million, convertible preferred stock with at least $50 million face amount
outstanding, and hybrid securities with at least $250 million face amount outstanding,
that meet minimum maturity and other requirements, as applicable, as determined by ICE
Data Indices, LLC (the “Index Provider” or “ICE Data”). In general, preferred stock is a class of equity
security that pays a specified dividend that must be paid before any dividends can be
paid to common stockholders and takes precedence over common stock in the event of a
company’s liquidation. In general, a “hybrid” security refers to a
security which combines both debt and equity characteristics. In general, hybrid
securities included in the Underlying Index, like traditional preferred stock, have
preference over the common stock within an issuer’s capital structure, and are
issued and traded in a similar manner to traditional preferred stock. Like debt
securities and preferred stock (but unlike common stock), issuers of hybrid securities
included in the Underlying Index may make fixed, periodic payments to the holders of
such securities. Like preferred stock, issuers of hybrid securities included in the
Underlying Index have the ability to defer dividend payments and to extend such
securities’ maturity dates. Although preferred stocks represent a partial ownership
interest in a company, preferred stocks generally do not carry voting rights. Preferred
stocks have economic characteristics similar to fixed-income securities. Preferred
stocks and hybrid securities generally are issued with a fixed par value and pay
dividends based on a percentage of that par value at a fixed or variable rate.
Additionally, preferred stocks and hybrid securities often have a liquidation value that
generally equals the original purchase price of such security at the date of issuance.
The Underlying Index may include many different categories of preferred stock and hybrid
securities, such as floating and fixed rate preferreds, fixed-to-floating rate
securities, callable preferreds, convertible preferreds, cumulative and non-cumulative
preferreds, certain capital securities, trust preferreds or various other preferred
stock and hybrid securities. The total allocation to an individual issuer across the
entire Underlying Index is limited to 4.75%. The Underlying Index uses a market
capitalization weighted methodology subject to certain constraints and is rebalanced
monthly. The Underlying Index may include large-, mid- or small-capitalization companies and
includes preferred stocks and hybrid securities of non-U.S. issuers. As of
March 31, 2023, a significant portion of the Underlying Index is represented by
securities of companies in the financial industry or sector. The components of the
Underlying Index are likely to change over time. |
iShares Select Dividend ETF |
The fund seeks to track the investment results of an index composed of relatively high dividend paying U.S. equities. The fund seeks to track the investment results of the Dow Jones U.S. Select Dividend Index (the “Underlying Index”), which measures the performance of the U.S.’s leading
stocks by dividend yield. Dividend yield is calculated using a stock’s indicated annual
dividend (not including any special dividends) divided by its price. The Underlying
Index is composed of 100 of the highest dividend-yielding securities (excluding REITs)
in the Dow Jones U.S. Index, a broad-based index representative of the total market for
U.S. equity securities. To be included in the Underlying Index, each security (i) must
have a dividend per share greater than or equal to its five-year average dividend per
share; (ii) must have a five-year average dividend coverage ratio of greater than or
equal to 167%; (iii) must have a three-month average daily trading volume of 200,000
shares (100,000 shares |
Fund Name |
Investment Objective and Principal Strategies |
iShares Select Dividend ETF
(continued) |
for current constituents); (iv) must have paid dividends in each of the previous five years;
(v) must have a non-negative trailing 12 month earnings per share; and (vi) must have a
float-adjusted market cap of at least $3 billion ($2 billion for current constituents).
The Underlying Index is reviewed quarterly and rebalanced annually. The Underlying Index includes large-, mid- and
small- capitalization companies and may change over time. As of April 30, 2023, a
significant portion of the Underlying Index is represented by securities of companies in
the financials and utilities industry or sector. The components of the Underlying Index
are likely to change over time. |
iShares U.S. Real Estate ETF |
The fund seeks to track the investment results of an index composed of U.S. equities in the real estate sector. The fund seeks to track the investment results of the Dow Jones U.S. Real Estate Capped Index (the “Underlying Index”), which measures the performance of the real estate sector of the U.S. equity market, as defined by S&P Dow Jones Indices LLC (the “Index Provider”). The Underlying Index uses a capping methodology to limit the weight of
the securities of any single issuer (as determined by SPDJI) to a maximum of 10% of the
Underlying Index. Additionally, the Underlying Index constrains at each quarterly review:
(i) the weight of any single issuer to a maximum of 10%, and (ii) the aggregate weight
of all issuers that individually exceed 4.50% of the index weight to a maximum of
22.50%. Between scheduled quarterly index reviews, the Underlying Index is rebalanced at
the end of any day on which all issuers that individually constitute more than 5% of the
weight of the Underlying Index constitute more than 25% of the weight of the Underlying
Index in the aggregate. In implementing this capping methodology, the Index Provider
may consider two or more companies as belonging to the same issuer where there is
reasonable evidence of common control. As of March 31, 2023, a significant portion of the
Underlying Index is represented by securities of companies in the real estate investment
trust industry or sector. The components of the Underlying Index are likely to change
over time. |
|
|
Availability |
Available only to (i) certain employee benefit plans, such as health savings accounts,
and certain employer-sponsored retirement plans (not including SEP IRAs, SIMPLE IRAs
and SARSEPs) (collectively, “Employer-Sponsored Retirement Plans”), (ii) collective trust
funds, investment companies and other pooled investment vehicles, each of which may
purchase shares of the Fund through a Financial Intermediary that has entered into an
agreement with the Distributor to purchase such shares, (iii) “Institutional Investors,”
which include, but are not limited to, endowments, foundations, family offices, banks
and bank trusts, local, city, and state governmental institutions, corporations and
insurance company separate accounts, each of which may purchase shares of the Fund
through a Financial Intermediary that has entered into an agreement with the Distributor
to purchase such shares, (iv) clients of private banks that purchase shares of the Fund
through a Financial Intermediary that has entered into an agreement with the Distributor
to sell such shares; (v) fee-based advisory platforms of a Financial Intermediary that
(a) has specifically acknowledged in a written agreement with the Distributor and/or its
affiliate(s) that the Financial Intermediary shall offer such shares to fee-based advisory
clients through an omnibus account held at the Fund or (b) transacts in the Fund’s
shares through another intermediary that has executed such an agreement and (vi) any
other investors who met the eligibility criteria for BlackRock Shares or Class K Shares
prior to August 15, 2016 and have continually held Class K Shares of the Fund in the
same account since August 15, 2016. |
Minimum Investment |
$5 million minimum initial investment for Institutional Investors. There is no minimum initial investment requirement
for any Employer-Sponsored Retirement Plans or any other eligible investors other than
Institutional Investors. There
is no minimum investment amount for additional purchases. |
Initial Sales Charge? |
No. Entire purchase price is invested in shares of the Fund. |
Deferred Sales Charge? |
No. |
Distribution and Service (12b-1) Fees? |
No. |
Redemption Fees? |
No. |
|
Your Choices |
Important Information for You to Know |
Initial Purchase |
Determine the amount of your investment |
There is no minimum initial investment for any Employer-Sponsored Retirement Plans or any other investors other than Institutional Investors. For Institutional Investors, there is a $5 million minimum initial investment for all accounts. |
|
Your Choices |
Important Information for You to Know |
Initial Purchase (continued) |
Have your Financial
Intermediary submit
your purchase order |
The price of your shares is based on the next calculation of the Fund’s
net asset value after your order is placed. Any purchase orders placed
prior to the close of business on the New York Stock Exchange (the
“NYSE”) (generally 4:00 p.m. Eastern time) will be priced at the net
asset value determined that day. Certain Financial Intermediaries,
however, may require submission of orders prior to that time. Purchase
orders placed after that time will be priced at the net asset value
determined on the next business day. A broker-dealer or financial
institution maintaining the account in which you hold shares may
charge a separate account, service or transaction fee on the purchase
or sale of Fund shares that would be in addition to the fees and
expenses shown in the Fund’s “Fees and Expenses” table. The Fund may reject any order to buy shares and may suspend the sale of shares at any time. Certain Financial Intermediaries may charge a processing fee to confirm a purchase. |
|
Or contact BlackRock (for accounts held
directly with BlackRock) |
For investors not purchasing shares through an Employer-Sponsored
Retirement Plan, to purchase shares directly from BlackRock, call
(800)
537-4942 and request a new account application.
|
Add to Your Investment |
Purchase additional shares |
There is no minimum investment amount for additional purchases. |
|
Have your Financial
Intermediary submit
your purchase order for
additional shares |
To purchase additional shares, you may contact your Financial
Intermediary or Employer-Sponsored Retirement Plan. |
|
Or contact BlackRock (for accounts held
directly with BlackRock) |
For investors not purchasing shares through an Employer-Sponsored
Retirement Plan: Purchase by Telephone: Call the Fund at (800) 537-4942 and speak
with one of our representatives. The Fund has the right to reject any
telephone request for any reason. Purchase by Internet: You may purchase your shares, and view activity
in your account, by logging onto the BlackRock website at
www.blackrock.com. Purchases made on the Internet using the
Automated Clearing House (“ACH”) will have a trade date that is the
day after the purchase is made. Certain institutional clients’ purchase
orders placed by wire prior to the close of business on the NYSE will be
priced at the net asset value determined that day. Contact your
Financial Intermediary or BlackRock for further information. Limits on
amounts that may be purchased via Internet may vary. For additional
information call BlackRock at (800) 537-4942. Please read the On-Line Services Disclosure
Statement and User Agreement, the Terms and Conditions page and the Consent to
Electronic Delivery Agreement (if you consent to electronic delivery),
before attempting to transact online. The Fund employs reasonable procedures to confirm
that transactions entered over the Internet are genuine. By entering into the User
Agreement with the Fund in order to open an account through the
website, the shareholder waives any right to reclaim any losses from
the Fund or any of its affiliates incurred through fraudulent activity. |
|
Acquire additional shares by reinvesting dividends and capital gains |
All dividends and capital gains distributions are automatically reinvested in shares of the Fund at net asset value. To make any changes to your dividend and/or capital gains distributions options, please call BlackRock at (800) 537-4942 (for investors who are not purchasing shares through an Employer-Sponsored Retirement Plan) or contact your Financial Intermediary. |
|
Your Choices |
Important Information for You to Know |
How to Pay for Shares |
Making payment for purchases |
If you are purchasing shares through an Employer-Sponsored Retirement Plan, payment for an order must be made in Federal funds or other immediately available funds by the time specified by your Financial Intermediary, but in no event later than 4:00 p.m. (Eastern
time) on the first business day following the receipt of the order. If
payment is not received by this time, the order will be canceled and
you and your Financial Intermediary will be responsible for any loss to
the Fund. If you are not purchasing shares through an Employer-Sponsored
Retirement Plan, payment for shares must normally be made in Federal
funds or other immediately available funds by the time specified by your
Financial Intermediary but in no event later than 4:00 p.m. (Eastern
time) on the first business day following receipt of the order. Payment
may also, at the discretion of the Fund, be made in the form of
securities that are permissible investments for the respective fund. If
payment is not received by this time, the order will be canceled and you
and your Financial Intermediary will be responsible for any loss to the
Fund. |
|
Your Choices |
Important Information for You to Know |
Full or Partial Redemption of Shares |
Have your Financial
Intermediary submit
your sales order |
If you purchased shares through an Employer-Sponsored Retirement
Plan, you can make redemption requests through your Financial
Intermediary in accordance with the procedures applicable to your
accounts. These procedures may vary according to the type of account
and the Financial Intermediary involved, and customers should consult
their Financial Intermediary in this regard. Financial Intermediaries are
responsible for transmitting redemption orders and crediting their
customers’ accounts with redemption proceeds on a timely basis.
Information relating to such redemption services and charges to
process a redemption of shares, if any, should be obtained by
customers from their Financial Intermediaries. If you did not purchase your shares through an
Employer-Sponsored Retirement Plan, you can make redemption requests through your
Financial Intermediary. The price of Class K Shares is based on the next
calculation of the Fund’s net asset value after your order is placed. For your
redemption request to be priced at the net asset value on the day of your request,
you must submit your request to your Financial Intermediary prior to
that day’s close of business on the NYSE (generally, 4:00 p.m. Eastern
time). Certain Financial Intermediaries, however, may require
submission of orders prior to that time. Any redemption request placed
after that time will be priced at the net asset value at the close of
business on the next business day. Regardless of the method the Fund uses to make
payment of your redemption proceeds (check or wire), your redemption proceeds
typically will be sent one to two business days after your request is
submitted, but in any event, within seven days. Certain Financial Intermediaries may charge a fee
to process a redemption of shares. The Fund may reject an order to sell shares under
certain circumstances. |
|
Selling shares held
directly with BlackRock |
Methods of Redeeming if You Did Not Purchase Your Shares Through an Employer-Sponsored Retirement Plan Redeem by Telephone: You may sell shares held at BlackRock by telephone request. Call (800) 537-4942 for details. The Fund, its administrator and the Distributor will employ reasonable procedures to confirm that instructions communicated by telephone are genuine. The Fund and its service providers will not be liable for any loss, liability, cost or expense for acting upon telephone instructions |
|
Your Choices |
Important Information for You to Know |
Full or Partial Redemption of Shares (continued) |
Selling shares held directly with BlackRock (continued) |
that are reasonably believed to be genuine in accordance with such procedures. The Fund may refuse a telephone redemption request if it believes it is advisable to do so. During periods of substantial economic or market change, telephone redemptions may be difficult to complete. Please find below alternative redemption methods. Redeem by Internet: You may redeem in your account, by logging onto the BlackRock website at www.blackrock.com. Proceeds from Internet redemptions will be sent via wire to the bank account of record. Redeem in Writing: Redemption requests may be sent in proper form to BlackRock, P.O. Box 534429, Pittsburgh, Pennsylvania 15253-4429 or for overnight delivery, Attention: 534429, 500 Ross Street 154- 0520, Pittsburgh, Pennsylvania 15262. Under certain circumstances, a medallion signature guarantee will be required. Payment of Redemption Proceeds Redemption proceeds may be paid by check or, if the
Fund has verified banking information on file, by wire transfer. Payment by Check: BlackRock will normally mail redemption proceeds within three business days following receipt of a properly completed request, but in any event within seven days. Shares can be redeemed by telephone and the proceeds sent by check to the shareholder at the address on record. Shareholders will pay $15 for redemption proceeds sent by check via overnight mail. You are responsible for any additional charges imposed by your bank for this service.
The Fund reserves the right to reinvest any
dividend or distribution amounts (e.g., income dividends or capital gains) which you
have elected to receive by check should your check be returned as
undeliverable or remain uncashed for more than 6 months. No interest
will accrue on amounts represented by uncashed checks. Your check
will be reinvested in your account at the net asset value next
calculated, on the day of the investment. When reinvested, those
amounts are subject to the risk of loss like any Fund investment. If you
elect to receive distributions in cash and a check remains undeliverable
or uncashed for more than 6 months, your cash election may also be
changed automatically to reinvest and your future dividend and capital
gains distributions will be reinvested in the Fund at the net asset value
as of the date of payment of the distribution. Payment by Wire Transfer: Payment for redeemed shares for which a
redemption order is received before 4:00 p.m. (Eastern time) on a
business day is normally made in Federal funds wired to the redeeming
shareholder on the next business day, provided that the Fund’s
custodian is also open for business. Payment for redemption orders
received after
4:00 p.m. (Eastern time) or on a day when the Fund’s
custodian is closed is normally wired in Federal funds on the next
business day following redemption on which the Fund’s custodian is
open for business. The Fund reserves the right to wire redemption
proceeds within seven days after receiving a redemption order if, in the
judgment of the Fund, an earlier payment could adversely affect the
Fund. Shares can be redeemed by Federal wire transfer to a single
previously designated bank account. No charge for wiring redemption
payments with respect to Class K Shares is imposed by the Fund. You
are responsible for any additional charges imposed by your bank for
wire transfers. The Fund is not responsible for the efficiency of the Federal wire
system or the shareholder’s firm or bank. To change the name of the
single, designated bank account to receive wire redemption proceeds, it
is necessary to send a written request to the Fund at the address on
the back cover of this prospectus.
*** |
|
Your Choices |
Important Information for You to Know |
Full or Partial Redemption of Shares (continued) |
Selling shares held
directly with BlackRock
(continued) |
If you make a redemption request before the Fund has collected
payment for the purchase of shares, the Fund may delay mailing your
proceeds. This delay will usually not exceed ten days. |
Redemption Proceeds |
|
Under normal circumstances, the Fund expects to meet redemption requests by using cash or cash equivalents in its portfolio or by selling portfolio assets to generate cash. During periods of stressed market conditions, when a significant portion of the Fund’s portfolio may be comprised of less-liquid investments, the Fund may be more likely to limit cash redemptions and may determine to pay redemption proceeds by (i) borrowing under a line of credit it has entered into with a group of lenders, (ii) borrowing from another BlackRock Fund pursuant to an interfund lending program, to the extent permitted by the Fund’s investment policies and restrictions as set forth in the SAI, and/or (iii) transferring portfolio securities in-kind to you. The SAI includes more information about the Fund’s line of credit and interfund lending program, to the extent applicable. If the Fund pays redemption proceeds by transferring portfolio securities in-kind to you, you may pay transaction costs to dispose of the securities, and you may receive less for them than the price at which they were valued for purposes of redemption. |
|
Your Choices |
Important Information for You to Know |
Exchange Privilege
|
Selling shares of one BlackRock
Fund to purchase shares of
another BlackRock Fund
(“exchanging”) |
Class K Shares of the Fund are generally exchangeable for shares of
the same class of another BlackRock Fund, to the extent such shares
are offered by your Financial Intermediary. Investors who currently own
Class K Shares of the Fund may make exchanges into Class K Shares
of other BlackRock Funds except for investors holding shares through
certain client accounts at Financial Intermediaries that are omnibus
with the Fund and do not meet applicable minimums. There is no
required minimum amount with respect to exchanges of Class K
Shares. You may only exchange into Class K Shares of a BlackRock
Fund that is open to new investors or in which you have a current
account, if the BlackRock Fund is closed to new investors. To exercise the exchange privilege, you may
contact your Financial Intermediary. Alternatively, if your account is held directly
with BlackRock, you may: (i) call (800) 537-4942 and speak with one of our
representatives, (ii) make the exchange via the Internet by accessing
your account online at www.blackrock.com or (iii) send a written request
to the Fund at the address on the back cover of this prospectus. Please
note, if you indicated on your new account application that you did not
want the Telephone Exchange Privilege, you will not be able to place
exchanges via the telephone until you update this option either in
writing or by calling (800) 537-4942. The Fund has the right to reject
any telephone request for any reason. Although there is currently no limit on the number
of exchanges that you can make, the exchange privilege may be modified or terminated at
any time in the future. The Fund may suspend or terminate your
exchange privilege at any time for any reason, including if the Fund
believes, in its sole discretion, that you are engaging in market timing
activities. See “Short-Term Trading Policy” below. For U.S. federal
income tax purposes a share exchange is a taxable event and a capital
gain or loss may be realized. Please consult your tax adviser or other
Financial Intermediary before making an exchange request. |
Transfer Shares to Another Financial Intermediary |
Transfer to a participating
Financial Intermediary |
You may transfer your Class K Shares of the Fund only to another Financial Intermediary that has entered into an agreement with the Distributor. Certain shareholder services may not be available for the transferred shares. All future trading of these assets must be coordinated by the receiving firm. Please contact your Financial Intermediary to accomplish the transfer of your Class K Shares. |
|
Your Choices |
Important Information for You to Know |
Transfer Shares to Another Financial Intermediary (continued) |
Transfer to a non-participating
Financial Intermediary |
You must either:
•Transfer
your Class K Shares to an account with the Fund; or •Sell your Class K Shares. Please contact your Financial Intermediary to accomplish the transfer of your Class K Shares. |
Average Daily Net Assets |
Rate of
Management Fee |
First $1 billion |
0.35 % |
$1 billion – $2 billion |
0.34 % |
$2 billion – $3 billion |
0.33 % |
Greater than $3 billion |
0.32 % |
|
Contractual Cap1 on
Other Expenses2 (excluding Dividend Expense, Interest Expense and certain other Fund expenses) |
Class K Shares |
0.04 % |
Portfolio Manager |
Primary Role |
Since |
Title and Recent Biography |
Justin Christofel, CFA |
Jointly and primarily responsible for
the day-to-day management of the
Fund’s portfolio, including setting the
Fund’s overall investment strategy
and overseeing the management of
the Fund. |
2016 |
Managing Director of BlackRock, Inc. since
2016; Director of BlackRock, Inc. from 2013
to 2015; Vice President of BlackRock, Inc.
from 2010 to 2013; Associate of BlackRock,
Inc. from 2008 to 2010; Analyst of BlackRock,
Inc. from 2007 to 2008. |
Alex Shingler, CFA |
Jointly and primarily responsible for the day-to-day management of the Fund’s portfolio, including setting the Fund’s overall investment strategy and overseeing the management of the Fund. |
2016 |
Managing Director of BlackRock, Inc. since 2011; Director of BlackRock, Inc. from 2009 to 2010; Senior Vice President at R3 Capital Partners from 2008 to 2009. |
|
BlackRock Managed Income Fund | ||||
|
Class K | ||||
(For a share outstanding throughout each period) |
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Net asset value, beginning of year |
$8.98 |
$10.33 |
$10.30 |
$10.11 |
$9.58 |
Net investment income(a) |
0.47 |
0.39 |
0.34 |
0.36 |
0.39 |
Net realized and unrealized gain (loss) |
0.43 |
(1.33 ) |
0.23 |
0.20 |
0.53 |
Net increase (decrease) from investment operations
|
0.90 |
(0.94 ) |
0.57 |
0.56 |
0.92 |
Distributions(b)
|
|
|
|
|
|
From net investment income |
(0.47 ) |
(0.40 ) |
(0.34 ) |
(0.35 ) |
(0.39 ) |
From net realized gain |
— |
(0.01 ) |
(0.20 ) |
(0.02 ) |
— |
Total distributions |
(0.47 ) |
(0.41 ) |
(0.54 ) |
(0.37 ) |
(0.39 ) |
Net asset value, end of year |
$9.41 |
$8.98 |
$10.33 |
$10.30 |
$10.11 |
Total
Return(c) |
|
|
|
|
|
Based on net asset value |
10.35 % |
(9.10 )% |
5.66 % |
5.72 % |
9.78 % |
Ratios to Average Net Assets(d) |
|
|
|
|
|
Total expenses |
0.54 % |
0.52 % |
0.52 % |
0.52 % |
0.50 % |
Total expenses after fees waived and/or reimbursed
|
0.34 % |
0.36 % |
0.35 % |
0.33 % |
0.29 % |
Net investment income |
5.17 % |
4.13 % |
3.22 % |
3.58 % |
3.97 % |
Supplemental Data |
|
|
|
|
|
Net assets, end of year (000) |
$73,413 |
$79,942 |
$102,690 |
$83,808 |
$59,493 |
Portfolio turnover rate(e)
|
65 % |
60 % |
45 % |
76 % |
71 % |
|
Year Ended
12/31/23 |
Year Ended
12/31/22 |
Year Ended
12/31/21 |
Year Ended
12/31/20 |
Year Ended
12/31/19 |
Portfolio turnover rate (including equity-linked notes)
|
95 % |
103 % |
88 % |
94 % |
91 % |
Class |
Ticker Symbol |
Investor A Shares |
BLADX |
Investor C Shares |
BMICX |
Institutional Shares |
BLDIX |
Class K Shares |
BLDRX |
|
Page |
| |
I-1 |
|
I-5 | |
I-7 |
|
I-17 | |
I-22 | |
I-22 | |
I-23 | |
I-25 | |
I-27 | |
| |
II-1 |
|
II-76 | |
II-78 | |
II-90 | |
II-107 | |
II-110 | |
II-114 | |
II-116 | |
II-120 | |
II-127 | |
II-129 | |
II-130 | |
A-1 |
|
B-1 |
|
BlackRock Managed Income Fund |
144A Securities |
X |
Asset-Backed Securities |
X |
Asset-Based Securities |
X |
Precious Metal-Related Securities |
X |
Borrowing and Leverage |
X |
Cash Flows; Expenses |
X |
Cash Management |
X |
Collateralized Debt Obligations |
X |
Collateralized Bond Obligations |
X |
Collateralized Loan Obligations |
X |
Commercial Paper |
X |
Commodity-Linked Derivative Instruments and Hybrid
Instruments |
X |
Qualifying Hybrid Instruments |
X |
Hybrid Instruments Without Principal Protection |
X |
Limitations on Leverage |
X |
Counterparty Risk |
X |
Convertible Securities |
X |
Corporate Loans |
X |
Direct Lending |
|
Credit Linked Securities |
X |
Cyber Security Issues |
X |
Debt Securities |
X |
Inflation-Indexed Bonds |
X |
Investment Grade Debt Obligations |
X |
|
BlackRock Managed Income Fund |
High Yield Investments (“Junk
Bonds”) |
X |
Mezzanine Investments |
X |
Pay-in-kind Bonds |
X |
Supranational Entities |
X |
Depositary Receipts (ADRs, EDRs and GDRs) |
X |
Derivatives |
X |
Hedging |
X |
Speculation |
X |
Risk Factors in Derivatives |
X |
Correlation Risk |
X |
Counterparty Risk |
X |
Credit Risk |
X |
Currency Risk |
X |
Illiquidity Risk |
X |
Leverage Risk |
X |
Market Risk |
X |
Valuation Risk |
X |
Volatility Risk |
X |
Futures |
X |
Swap Agreements |
X |
Credit Default Swaps and Similar Instruments |
X |
Interest Rate Swaps, Floors and Caps |
X |
Total Return Swaps |
X |
Options |
X |
Options on Securities and Securities Indices |
X |
Call Options |
See note 1 below |
Put Options |
See note 1 below |
Options on Government National Mortgage Association (“GNMA”)
Certificates |
X |
Options on Swaps (“Swaptions”) |
X |
Foreign Exchange Transactions |
X |
Spot Transactions and FX Forwards |
X |
Currency Futures |
X |
Currency Options |
See note 1 below |
Currency Swaps |
X |
Distressed Securities |
X |
Environmental, Social and Governance (“ESG”)
Integration |
X |
Equity Securities |
X |
Real Estate-Related Securities |
X |
Securities of Smaller or Emerging Growth Companies |
X |
Exchange-Traded Notes (“ETNs”) |
X |
Foreign Investments |
X |
Foreign Investment Risks |
X |
|
BlackRock Managed Income Fund |
Foreign Market Risk |
X |
Foreign Economy Risk |
X |
Currency Risk and Exchange Risk |
X |
Governmental Supervision and Regulation/Accounting Standards |
X |
Certain Risks of Holding Fund Assets Outside the United States |
X |
Publicly Available Information |
X |
Settlement Risk |
X |
Sovereign Debt |
X |
Withholding Tax Reclaims Risk |
X |
Funding Agreements |
X |
Guarantees |
X |
Illiquid Investments |
X |
Index Funds |
|
Tracking Error Risk |
|
S&P 500 Index |
|
Russell Indexes |
|
MSCI Indexes |
|
FTSE Indexes |
|
Bloomberg Indexes |
|
ICE BofA Indexes |
|
Indexed and Inverse Securities |
X |
Inflation Risk |
X |
Initial Public Offering (“IPO”) Risk
|
X |
Interfund Lending Program |
X |
Borrowing, to the extent permitted by the Fund’s investment policies and
restrictions |
X |
Lending, to the extent permitted by the Fund’s investment policies and
restrictions |
|
Investment in Emerging Markets |
X |
Brady Bonds |
X |
China Investments Risk |
X |
Investment in Other Investment Companies |
X |
Exchange-Traded Funds |
X |
Lease Obligations |
X |
Life Settlement Investments |
|
Liquidity Risk Management |
X |
Master Limited Partnerships |
X |
Merger Transaction Risk |
|
Money Market Obligations of Domestic Banks, Foreign Banks and
Foreign Branches of U.S. Banks |
X |
Money Market Securities |
X |
Mortgage-Related Securities |
X |
Mortgage-Backed Securities |
X |
Collateralized Mortgage Obligations (“CMOs”) |
X |
|
BlackRock Managed Income Fund |
Adjustable Rate Mortgage Securities |
X |
CMO Residuals |
X |
Stripped Mortgage-Backed Securities |
X |
Tiered Index Bonds |
X |
TBA Commitments |
X |
Mortgage Dollar Rolls |
X |
Net Interest Margin (NIM) Securities |
|
Municipal Investments |
X |
Risk Factors and Special Considerations Relating to Municipal Bonds |
X |
Description of Municipal Bonds |
X |
General Obligation Bonds |
X |
Revenue Bonds |
X |
Private Activity Bonds (“PABs”) |
X |
Moral Obligation Bonds |
X |
Municipal Notes |
X |
Municipal Commercial Paper |
X |
Municipal Lease Obligations |
X |
Tender Option Bonds |
X |
Yields |
X |
Variable Rate Demand Obligations (“VRDOs”) |
X |
Transactions in Financial Futures Contracts on Municipal Indexes |
X |
Call Rights |
X |
Municipal Interest Rate Swap Transactions |
X |
Insured Municipal Bonds |
X |
Build America Bonds |
X |
Tax-Exempt Municipal Investments |
X |
Participation Notes |
X |
Portfolio Turnover Rates |
X |
Preferred Stock |
X |
Tax-Exempt Preferred Shares |
X |
Trust Preferred Securities |
X |
Real Estate Investment Trusts (“REITs”) |
X |
Recent Market Events |
X |
Reference Rate Replacement Risk |
X |
Repurchase Agreements and Purchase and Sale Contracts |
X |
Restricted Securities |
X |
Reverse Repurchase Agreements |
X |
Rights Offerings and Warrants to Purchase |
X |
Securities Lending |
X |
Short Sales |
See note 2 below |
Special Purpose Acquisition Companies |
X |
Standby Commitment Agreements |
X |
|
BlackRock Managed Income Fund |
Stripped Securities |
X |
Structured Notes |
X |
Taxability Risk |
X |
Temporary Defensive Measures |
X |
U.S. Government Obligations |
X |
U.S. Treasury Obligations |
X |
U.S. Treasury Rolls |
X |
Utility Industries |
X |
When-Issued Securities, Delayed Delivery Securities and Forward
Commitments |
X |
Yields and Ratings |
X |
Zero Coupon Securities |
X |
Trustees |
Experience, Qualifications and Skills |
Independent Trustees |
|
Susan J. Carter |
Susan J. Carter has over 35 years of experience in investment management. She has served as President & Chief Executive Officer of Commonfund Capital, Inc. (“CCI”), a
registered investment adviser focused on non-profit investors, from 1997 to 2013, Chief
Executive Officer of CCI from 2013 to 2014 and Senior Advisor to CCI in 2015.
Ms. Carter also served as trustee to the Pacific Pension Institute from 2014 to 2018,
trustee to the Financial Accounting Foundation from 2017 to 2021, Advisory Board
Member for the Center for Private Equity and Entrepreneurship at Tuck School of Business
from 1997 to 2021, Advisory Board Member for Bridges Fund Management from 2016 to
2018, and Advisory Board Member for Girls Who Invest from 2015 to 2018 and Board
Member thereof from 2018 to 2022. She currently serves as Member of the President’s
Counsel for Commonfund and Practitioner Advisory Board Member for Private Capital
Research Institute (“PCRI”). These positions have provided her with insight
and perspective on the markets and the economy. |
Collette Chilton |
Collette Chilton has over 20 years of experience in investment management. She held the position of Chief Investment Officer of Williams College from October 2006 to June 2023. Prior to that she was President and Chief Investment Officer of Lucent Asset Management Corporation, where she oversaw approximately $40 billion in pension and retirement savings assets for the company. These positions have provided her with insight and perspective on the markets and the economy. |
Neil A. Cotty |
Neil A. Cotty has more than 30 years of experience in the financial services industry, including 19 years at Bank of America Corporation and its affiliates, where he served, at different times, as the Chief Financial Officer of various businesses including Investment Banking, Global Markets, Wealth Management and Consumer and also served ten years as the Chief Accounting Officer for Bank of America Corporation. Mr. Cotty has been determined by the Audit Committee to be an audit committee financial expert, as such term is defined in the applicable Commission rules. |
Lena G. Goldberg |
Lena G. Goldberg has more than 20 years of business and oversight experience, most recently through her service as a senior lecturer at Harvard Business School. Prior thereto, she held legal and management positions at FMR LLC/Fidelity Investments as well as positions on the boards of various Fidelity subsidiaries over a 12-year period. She has additional corporate governance experience as a member of board and advisory committees for privately held corporations and non-profit organizations. Ms. Goldberg also has more than 17 years of legal experience as an attorney in private practice, including as a partner in a law firm. |
Henry R. Keizer |
Henry R. Keizer brings over 40 years of executive, financial, operational, strategic and global expertise gained through his 35 year career at KPMG, a global professional services organization and by his service as a director to both publicly and privately held organizations. He has extensive experience with issues facing complex, global companies and expertise in financial reporting, accounting, auditing, risk management, and regulatory affairs for such companies. Mr. Keizer’s experience also includes service as an
audit committee chair to both publicly and privately held organizations across numerous
industries including professional services, property and casualty reinsurance, insurance,
diversified financial services, banking, direct to consumer, business to business and
technology. Mr. Keizer is a certified public accountant and also served on the board of
the American Institute of Certified Public Accountants. Mr. Keizer has been determined
by the Audit Committee to be an audit committee financial expert, as such term is
defined in the applicable Commission rules. |
Trustees |
Experience, Qualifications and Skills |
Cynthia A. Montgomery |
Cynthia A. Montgomery has served for over 20 years on the boards of registered investment companies, most recently as a member of the boards of certain BlackRock- advised Funds and predecessor funds, including the legacy Merrill Lynch Investment Managers, L.P. (“MLIM”) funds. The Board benefits from Ms. Montgomery’s more than 20
years of academic experience as a professor at Harvard Business School where she
taught courses on corporate strategy and corporate governance. Ms. Montgomery also
has business management and corporate governance experience through her service on
the corporate boards of a variety of public companies. She has also authored numerous
articles and books on these topics. |
Donald C. Opatrny |
Donald C. Opatrny has more than 40 years of business, oversight and executive experience, including through his service as president, director and investment committee chair for academic and not-for-profit organizations, and his experience as a partner, managing director and advisory director at Goldman Sachs for 32 years. He also has investment management experience as a board member of Athena Capital Advisors LLC. |
Mark Stalnecker |
Mark Stalnecker has gained a wealth of experience in investing and asset management from his over 13 years of service as the Chief Investment Officer of the University of Delaware as well as from his various positions with First Union Corporation, including Senior Vice President and State Investment Director of First Investment Advisors. The Board benefits from his experience and perspective as the Chief Investment Officer of a university endowment and from the oversight experience he gained from service on various private and non-profit boards. |
Kenneth L. Urish |
Kenneth L. Urish has served for over 15 years on the boards of registered investment companies, most recently as a member of the boards of certain BlackRock-advised Funds and predecessor funds, including the legacy BlackRock funds. He has over 30 years of experience in public accounting. Mr. Urish has served as a managing member of an accounting and consulting firm. Mr. Urish has been determined by the Audit Committee to be an audit committee financial expert, as such term is defined in the applicable Commission rules. |
Claire A. Walton |
Claire A. Walton has over 25 years of experience in investment management. She has served as the Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015, an investment manager that specialized in long/ short non-U.S. equity investments, and was an owner and General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023, a firm focusing on long/short equities in global emerging and frontier markets. These positions have provided her with insight and perspective on the markets and the economy. |
Interested Trustees |
|
Robert Fairbairn |
Robert Fairbairn has more than 25 years of experience with BlackRock, Inc. and over 30 years of experience in finance and asset management. In particular, Mr. Fairbairn’s positions as Vice Chairman of BlackRock, Inc., Member of BlackRock’s Global Executive and Global Operating Committees and Co-Chair of BlackRock’s Human Capital Committee provide the Board with a wealth of practical business knowledge and leadership. In addition, Mr. Fairbairn has global investment management and oversight experience through his former positions as Global Head of BlackRock’s Retail and iShares®
businesses, Head of BlackRock’s Global Client Group, Chairman of BlackRock’s
international businesses and his previous oversight over BlackRock’s Strategic Partner
Program and Strategic Product Management Group. Mr. Fairbairn also serves as a board
member for the funds in the BlackRock Fixed-Income Complex. |
Trustees |
Experience, Qualifications and Skills |
John M. Perlowski |
John M. Perlowski’s experience as Managing Director of BlackRock, Inc. since 2009, as the Head of BlackRock Global Accounting and Product Services since 2009, and as President and Chief Executive Officer of the BlackRock-advised Funds provides him with a strong understanding of the BlackRock-advised Funds, their operations, and the business and regulatory issues facing the BlackRock-advised Funds. Mr. Perlowski’s prior position
as Managing Director and Chief Operating Officer of the Global Product Group at Goldman
Sachs Asset Management, and his former service as Treasurer and Senior Vice President
of the Goldman Sachs Mutual Funds and as Director of the Goldman Sachs Offshore
Funds provides the Board with the benefit of his experience with the management
practices of other financial companies. Mr. Perlowski also serves as a board member for
the funds in the BlackRock Fixed-Income Complex. |
Name and Year of Birth1,2 |
Position(s) Held
(Length of Service)3
|
Principal
Occupation(s) During Past Five Years |
Number
of BlackRock- Advised
Registered Investment
Companies (“RICs”)
Consisting of Investment
Portfolios (“Portfolios”)
Overseen |
Public Company
and Other
Investment
Company Directorships
Held
During Past Five Years |
Independent Trustees |
|
|
|
|
Mark Stalnecker 1951 |
Chair of the Board and Trustee
(Since 2019) |
Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014. |
28 RICs consisting of 164 Portfolios |
None |
Name and Year of Birth1,2 |
Position(s) Held (Length of
Service)3 |
Principal
Occupation(s) During Past Five Years |
Number
of BlackRock- Advised
Registered Investment
Companies (“RICs”)
Consisting of Investment
Portfolios (“Portfolios”)
Overseen |
Public Company and Other
Investment Company Directorships
Held During Past Five Years |
Susan J. Carter 1956 |
Trustee
(Since 2019) |
Trustee, Financial Accounting Foundation from 2017 to 2021; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business from 1997 to 2021; Director, Pacific Pension Institute from 2014 to 2018; Senior Advisor, CCI (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof from 2018 to 2022; Advisory Board Member, Bridges Fund Management from 2016 to 2018; Practitioner Advisory Board Member, PCRI since 2017; Lecturer in the Practice of Management, Yale School of Management since 2019; Advisor to Finance Committee, Altman Foundation since 2020; Investment Committee Member, Tostan since 2021; Member of the President’s Counsel, Commonfund since 2023. |
28 RICs consisting of 164 Portfolios |
None |
Collette Chilton 1958 |
Trustee
(Since 2019) |
Senior advisor, Insignia since 2024; Chief Investment Officer, Williams College from 2006 to 2023; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006; Director, Boys and Girls Club of Boston since 2017; Director, B1 Capital since 2018; Director, David and Lucile Packard Foundation since 2020. |
28 RICs consisting of 164 Portfolios |
None |
Neil A. Cotty 1954 |
Trustee
(Since 2019) |
Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002. |
28 RICs consisting of 164 Portfolios |
None |
Lena G. Goldberg 1949 |
Trustee
(Since 2016) |
Director, Pioneer Public Interest Law Center since 2023; Director, Charles Stark Draper Laboratory, Inc. from 2013 to 2021; Senior Lecturer, Harvard Business School from 2008 to 2021; FMR LLC/Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President – Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985. |
28 RICs consisting of 164 Portfolios |
None |
Name and Year of Birth1,2 |
Position(s) Held (Length of
Service)3 |
Principal
Occupation(s) During Past Five Years |
Number
of BlackRock- Advised
Registered Investment
Companies (“RICs”)
Consisting of Investment
Portfolios (“Portfolios”)
Overseen |
Public Company and Other
Investment Company Directorships
Held During Past Five Years |
Henry R. Keizer 1956 |
Trustee
(Since 2016) |
Director, Park Indemnity Ltd. (captive insurer) from 2010 to 2022. |
28 RICs consisting of 164 Portfolios |
GrafTech International Ltd. (materials manufacturing); Sealed Air Corp. (packaging); WABCO (commercial vehicle safety systems) from 2015 to 2020; Hertz Global Holdings (car rental) from 2015 to 2021. |
Cynthia A. Montgomery 1952 |
Trustee
(Since 2019) |
Professor, Harvard Business School since 1989. |
28 RICs consisting of 164 Portfolios |
None |
Donald C. Opatrny 1952 |
Trustee
(Since 2015) |
Chair of the Board of Phoenix Art Museum since 2022 and Trustee thereof since 2018; Chair of the Investment Committee of The Arizona Community Foundation since 2022 and Trustee thereof since 2020; Director, Athena Capital Advisors LLC (investment management firm) from 2013 to 2020; Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University from 2004 to 2019; Member of Affordable Housing Supply Board of Jackson, Wyoming from 2017 to 2022; Member, Investment Funds Committee, State of Wyoming from 2017 to 2023; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014. |
28 RICs consisting of 164 Portfolios |
None |
Kenneth L. Urish 1951 |
Trustee
(Since 2019) |
Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since 2001, Emeritus since 2022; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007; Member, Advisory Board, ESG Competent Boards since 2020. |
28 RICs consisting of 164 Portfolios |
None |
Name and Year of Birth1,2 |
Position(s) Held (Length of
Service)3 |
Principal
Occupation(s) During Past Five Years |
Number
of BlackRock- Advised
Registered Investment
Companies (“RICs”)
Consisting of Investment
Portfolios (“Portfolios”)
Overseen |
Public Company and Other
Investment Company Directorships
Held During Past Five Years |
Claire A. Walton 1957 |
Trustee
(Since 2019) |
Advisory Board Member, Grossman School of Business at the University of Vermont since 2023; Advisory Board Member, Scientific Financial Systems since 2022; General Partner of Neon Liberty Capital Management, LLC from 2003 to 2023; Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Massachusetts Council on Economic Education from 2013 to 2015; Director, Woodstock Ski Runners from 2013 to 2022. |
28 RICs consisting of 164 Portfolios |
None |
Interested
Trustees4 |
|
|
|
|
Robert Fairbairn 1965 |
Trustee
(Since 2015) |
Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016. |
96 RICs consisting of 266 Portfolios |
None |
John M. Perlowski5 1964 |
Trustee
(Since 2015) President and
Chief Executive Officer
(Since 2010) |
Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009. |
98 RICs consisting of 268 Portfolios |
None |
Name and Year of Birth1,2 |
Position(s)
Held (Length of Service) |
Principal Occupation(s) During Past Five Years |
Officers Who Are Not Trustees
|
|
|
Jennifer McGovern 1977 |
Vice President
(Since 2014) |
Managing Director of BlackRock, Inc. since 2016. |
Name and Year of Birth1,2 |
Position(s)
Held (Length of Service) |
Principal Occupation(s) During Past Five Years |
Trent Walker 1974 |
Chief
Financial Officer
(Since 2021) |
Managing Director of BlackRock, Inc. since 2019; Executive Vice President of PIMCO from 2016 to 2019. |
Jay M. Fife 1970 |
Treasurer
(Since 2007) |
Managing Director of BlackRock, Inc. since 2007. |
Aaron Wasserman 1974 |
Chief Compliance Officer
(Since 2023) |
Managing Director of BlackRock, Inc. since 2018; Chief Compliance Officer of the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex since 2023; Deputy Chief Compliance Officer for the BlackRock-advised funds in the BlackRock Multi-Asset Complex, the BlackRock Fixed-Income Complex and the iShares Complex from 2014 to 2023. |
Lisa Belle 1968 |
Anti-Money Laundering Compliance Officer
(Since 2019) |
Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019. |
Janey Ahn 1975 |
Secretary
(Since 2019) |
Managing Director of BlackRock, Inc. since 2018. |
Name |
Dollar Range of Equity Securities
in the Fund |
Aggregate Dollar Range of
Equity Securities in Supervised Funds |
Independent Trustees |
|
|
Susan J. Carter |
None |
Over
$100,000 |
Collette Chilton |
None |
Over
$100,000 |
Neil A. Cotty |
None |
Over
$100,000 |
Lena G. Goldberg |
None |
Over
$100,000 |
Henry R. Keizer |
None |
Over
$100,000 |
Cynthia A. Montgomery |
None |
Over
$100,000 |
Donald C. Opatrny |
None |
Over
$100,000 |
Mark Stalnecker |
None |
Over
$100,000 |
Kenneth L. Urish |
None |
Over
$100,000 |
Claire A. Walton |
None |
Over
$100,000 |
Interested Trustees |
|
|
Robert Fairbairn |
None |
Over
$100,000 |
John M. Perlowski |
None |
Over
$100,000 |
Name |
Compensation from the Fund |
Estimated Annual Benefits upon
Retirement
|
Aggregate Compensation from
the Fund and Other BlackRock- Advised Funds1 |
Independent Trustees |
|
|
|
Susan J. Carter |
$1,094 |
None
|
$425,000 |
Collette Chilton |
$1,094 |
None
|
$425,000 |
Neil A. Cotty |
$1,094 |
None
|
$425,000 |
Lena G. Goldberg2 |
$1,158 |
None |
$470,000 |
Henry R. Keizer3 |
$1,158 |
None |
$470,000 |
Cynthia A. Montgomery4 |
$1,158 |
None
|
$470,000 |
Donald C. Opatrny5 |
$1,158 |
None
|
$470,000 |
Mark Stalnecker6 |
$1,308 |
None |
$575,000 |
Kenneth L. Urish |
$1,094 |
None |
$425,000 |
Claire A. Walton |
$1,094 |
None |
$425,000 |
Interested Trustees |
|
|
|
Robert Fairbairn |
None
|
None
|
None |
John M. Perlowski |
None |
None |
None |
|
Fees Paid
to the Manager |
Fees
Waived by the Manager |
Fees Reimbursed
by the Manager |
Fiscal Year Ended December 31, 2023 |
$2,622,174 |
$399,417 |
$781,377 |
Fiscal Year Ended December 31, 2022 |
$3,211,919 |
$313,680 |
$748,434 |
Fiscal Year Ended December 31, 2021 |
$2,984,780 |
$342,145 |
$745,864 |
|
Fees Paid
to BlackRock |
Fees Waived
by BlackRock |
Fiscal Year Ended December 31, 2023 |
$462,016 |
$439,263 |
Fiscal Year Ended December 31, 2022 |
$563,059 |
$536,074 |
|
Fees Paid to BlackRock |
Fees Waived by
BlackRock |
Fiscal Year Ended December 31, 2021 |
$524,169 |
$514,704 |
|
Fees Paid
to BlackRock |
Fees Waived
by BlackRock |
Fiscal Year Ended December 31, 2023 |
$3,583 |
$1,221 |
Fiscal Year Ended December 31, 2022 |
$5,106 |
$1,519 |
Fiscal Year Ended December 31, 2021 |
$2,262 |
$1,718 |
|
Fees Paid to JPM |
Fiscal Year Ended December 31, 2023 |
$375,377 |
Fiscal Year Ended December 31, 2022 |
$407,157 |
Fiscal Year Ended December 31, 2021 |
$396,620 |
|
Number of Other Accounts Managed
and Assets by Account Type |
Number of Other Accounts and Assets
for Which Advisory Fee is Performance-Based | ||||
Name of Portfolio Manager |
Other
Registered
Investment
Companies |
Other Pooled
Investment
Vehicles |
Other
Accounts |
Other
Registered
Investment
Companies |
Other Pooled
Investment
Vehicles |
Other
Accounts |
Justin Christofel, CFA |
4 |
11 |
1 |
0 |
0 |
0 |
|
$12.56 Billion |
$8.86 Billion |
$7.59 Million |
$0 |
$0 |
$0 |
Alex Shingler, CFA |
4 |
9 |
0 |
0 |
0 |
0 |
|
$12.56 Billion |
$8.21 Billion |
$0 |
$0 |
$0 |
$0 |
Portfolio Manager |
Dollar Range of Equity
Securities Beneficially Owned1 |
Justin Christofel, CFA |
$10,001 -
$50,000 |
Alex Shingler, CFA |
$100,001 -
$500,000 |
|
Investor A Shares | |||
|
Gross Sales
Charges Collected |
Sales Charges Retained by BRIL |
Sales Charges Paid to Affiliates |
CDSCs Received on Redemption
of Load-Waived Shares |
Fiscal Year Ended December 31, 2023 |
$93,166 |
$6,247 |
$6,247 |
$13,407 |
Fiscal Year Ended December 31, 2022 |
$99,080 |
$6,758 |
$6,758 |
$49,550 |
Fiscal Year Ended December 31, 2021 |
$352,328 |
$24,785 |
$24,785 |
$34,299 |
|
Investor C Shares | |
|
CDSCs Received by BRIL |
CDSCs Paid to
Affiliates |
Fiscal Year Ended December 31, 2023 |
$4,068 |
$4,068 |
Fiscal Year Ended December 31, 2022 |
$4,092 |
$4,092 |
Fiscal Year Ended December 31, 2021 |
$4,086 |
$4,086 |
Class Name |
Fees Paid
to BRIL |
Investor A Shares |
$781,456 |
Investor C Shares |
$222,028 |
|
Investor A Shares |
Net Assets |
$303,048,143 |
Number of Shares Outstanding |
32,291,157 |
|
Investor A Shares |
Net Asset Value Per Share (net assets divided by number of shares outstanding) |
$9.38 |
Sales Charge (4.00% of offering price; 4.17% of net asset value per share)1 |
$0.39 |
Offering Price |
$9.77 |
|
Aggregate Brokerage Commissions Paid |
Commissions Paid
to Affiliates |
Fiscal Year Ended December 31, 2023 |
$99,394 |
$0 |
Fiscal Year Ended December 31, 2022 |
$90,253 |
$0 |
Fiscal Year Ended December 31, 2021 |
$70,514 |
$0 |
Amount of
Commissions Paid to Brokers for Providing 28(e) Eligible
Research Services |
Amount of
Brokerage Transactions Involved |
$4,823 |
$15,383,705 |
Regular Broker/Dealer |
Debt (D)/Equity (E) |
Aggregate Holdings
(000’s) |
BofA Securities, Inc. |
D |
$6,544 |
J.P. Morgan Securities LLC |
D |
$5,806 |
Barclays Capital, Inc. |
D |
$5,239 |
Morgan Stanley & Co. LLC |
D |
$4,629 |
Wells Fargo Securities, LLC |
D |
$4,533 |
Citigroup Global Markets Inc. |
D |
$2,816 |
UBS Securities LLC |
D |
$2,360 |
Goldman Sachs & Co. LLC |
D |
$1,997 |
BNP Paribas Securities Corp. |
D |
$1,864 |
RBC Capital Markets, LLC |
D |
$28 |
Gross income from securities lending activities |
$335,619 |
Fees and/or compensation for securities lending activities and related services |
|
Securities lending income paid to BIM for services as securities lending agent |
$9,326 |
Cash collateral management expenses not included in securities lending income paid to BIM |
$2,598 |
Administrative fees not included in securities lending income paid to BIM |
$0 |
Indemnification fees not included in securities lending income paid to BIM |
$0 |
Rebates (paid to borrowers) |
$278,554 |
Other fees not included in securities lending income paid to BIM |
$0 |
Aggregate fees/compensation for securities lending activities |
$290,478 |
Net income from securities lending activities |
$45,141 |
Name |
Address
|
%
|
Class
|
Edward D. Jones & Co. |
12555 Manchester Road St.
Louis, MO 63131-3710 |
57.04% |
Investor A Shares |
Pershing LLC |
1 Pershing Plaza Jersey City,
NJ 07399-0001 |
8.54% |
Investor A Shares |
National Financial Services LLC |
499 Washington Blvd, Fl. 5
Jersey City, NJ 07310-2010 |
6.76% |
Investor A Shares |
Wells Fargo Clearing Services |
2801 Market Street St. Louis,
MO 63103 |
26.22% |
Investor C Shares |
Raymond James |
880 Carillon Pkwy Saint
Petersburg FL 33716-1102 |
14.93% |
Investor C Shares |
LPL Financial |
4707 Executive Drive San
Diego, CA 92121-3091 |
13.24% |
Investor C Shares |
Name |
Address |
% |
Class |
Pershing LLC |
1 Pershing Plaza Jersey City,
NJ 07399-0001 |
10.09% |
Investor C Shares |
American Enterprise Investment SVC |
707 2nd Avenue
S. Minneapolis, MN 55402-2405 |
9.17% |
Investor C Shares |
National Financial Services LLC |
499 Washington Blvd, Fl. 5
Jersey City, NJ 07310-2010 |
8.09% |
Investor C Shares |
Edward D. Jones & Co |
12555 Manchester Road St.
Louis, MO 63131-3710 |
6.64% |
Investor C Shares |
Charles Schwab & Co. Inc. |
101 Montgomery Street San
Francisco, CA 94104-4122 |
56.75% |
Institutional Shares |
National Financial Services LLC |
499 Washington Blvd, Fl. 5
Jersey City, NJ 07310-2010 |
14.00% |
Institutional Shares |
American Enterprise Investment SVC |
707 2nd Ave S. Minneapolis, MN
55402-2405 |
7.01% |
Institutional Shares |
LPL Financial |
4707 Executive Drive San
Diego, CA 92121-3091 |
6.99% |
Institutional Shares |
Edward D. Jones & Co. |
12555 Manchester Road St.
Louis, MO 63131-3710 |
45.43% |
Class K Shares |
Boal & Co. Trustee |
Marquis House Isle of Man Business Park Douglas Isle of Man
British Isles IM2 2QZ |
29.96% |
Class K Shares |
Empower Trust |
8515 E. Orchard Road 2T2
Greenwood Village, CO 80111 |
22.70% |
Class K Shares |
|
Time Periods for Portfolio Holdings | |
Prior to 20 Calendar Days After Month-End |
20 Calendar Days After Month-End To Public
Filing | |
Portfolio
Holdings |
Cannot disclose without non-disclosure or
confidentiality agreement and Chief
Compliance Officer (“CCO”) approval. |
May disclose to shareholders, prospective
shareholders, intermediaries, consultants
and third-party data providers (e.g., Lipper,
Morningstar and Bloomberg), except with
respect to Global Allocation funds*,
BlackRock Core Bond Portfolio and
BlackRock Strategic Income Opportunities
Portfolio of BlackRock Funds V, BlackRock
Strategic Global Bond Fund, Inc., Master
Total Return Portfolio of Master Bond LLC,
BlackRock Total Return V.I. Fund of
BlackRock Variable Series Funds II, Inc.,
BlackRock Sustainable Total Return Fund of
BlackRock Bond Fund, Inc., BlackRock
Unconstrained Equity Fund and BlackRock
Systematic Multi-Strategy Fund (each of
whose portfolio holdings may be disclosed
60 calendar days after month-end).
BlackRock generally discloses portfolio
holdings information on the lag times
established herein on its public website. If
Portfolio Holdings are disclosed to one party,
they must also be disclosed to all other
parties requesting the same information. |
|
Time Periods for Portfolio Characteristics | |
Portfolio
Characteristics
(Excluding
Liquidity
Metrics) |
Prior to 5 Calendar Days After Month-End |
5 Calendar Days After Month-End |
Cannot disclose without non-disclosure or
confidentiality agreement and CCO
approval.*,** |
May disclose to shareholders, prospective
shareholders, intermediaries, consultants
and third-party data providers (e.g., Lipper,
Morningstar and Bloomberg). If Portfolio
Characteristics are disclosed to one party,
they must also be disclosed to all other
parties requesting the same information. | |
Portfolio
Characteristics —
Liquidity Metrics |
Prior to 60 Calendar Days After Calendar
Quarter-End |
60 Calendar Days After Calendar Quarter-
End |
Cannot disclose without non-disclosure or
confidentiality agreement and CCO approval. |
May disclose to shareholders, prospective shareholders, intermediaries and consultants; provided portfolio management has approved. If Liquidity Metrics are disclosed to one party, they must also be disclosed to all other parties requesting the same information. |
|
Time Periods | |
Prior to 5 Calendar Days
After Month-End |
5 Calendar Days After
Month-End to Date of Public Filing | |
Portfolio
Holdings |
Cannot disclose without non-disclosure or
confidentiality agreement and CCO approval
except the following portfolio holdings
information may be released as follows:
•Weekly portfolio holdings information released on the website at least one business day after week-end except: — Other information as may be required
under Rule 2a-7 (e.g., name of issuer,
category of investment, principal amount,
maturity dates, yields).
— For Government money market funds,
daily portfolio holdings are released on
the website the following business day. |
May disclose to shareholders, prospective
shareholders, intermediaries, consultants
and third-party data providers. If portfolio
holdings are disclosed to one party, they
must also be disclosed to all other parties
requesting the same information. |
Portfolio
Characteristics |
Cannot disclose without non-disclosure or
confidentiality agreement and CCO approval
except the following information may be
released on the Fund’s website daily:
•Historical NAVs calculated based on market factors (e.g., marked-to-market) •Percentage of fund assets invested in daily
and weekly liquid assets (as defined under
Rule 2a-7)
•Daily net inflows and outflows •Yields, SEC yields, WAM, WAL, current
assets
•Other information as may be required by Rule 2a-7 |
May disclose to shareholders, prospective shareholders, intermediaries, consultants and third-party data providers. If Portfolio Characteristics are disclosed to one party, they must also be disclosed to all other parties requesting the same information. |
$1 million but less than $3 million |
1.00 % |
$3 million but less than $15 million |
0.50 % |
$15 million and above |
0.25 % |
$250,000 but less than $3 million |
1.00 % |
$3 million but less than $15 million |
0.50 % |
$15 million and above |
0.25 % |
$1 million but less than $3 million |
0.75 % |
$3 million but less than $15 million |
0.50 % |
$15 million and above |
0.25 % |
$1 million but less than $3 million |
0.50 % |
$3 million but less than $15 million |
0.25 % |
$15 million and above |
0.15 % |
$250,000 but less than $3 million |
0.50 % |
$3 million but less than $15 million |
0.25 % |
$15 million and above |
0.15 % |
$1 million but less than $3 million |
0.15 % |
$3 million but less than $15 million |
0.10 % |
$15 million and above |
0.05 % |
$500,000 but less than $3 million |
0.75 % |
$3 million but less than $15 million |
0.50 % |
$15 million and above |
0.25 % |
$250,000 and above |
0.50 % |
$100,000 and above |
0.25 % |
$250,000 and above |
0.25 % |
$250,000 but less than $4 million |
1.00 % |
$4 million but less than $10 million |
0.50 % |
$10 million and above |
0.25 % |
$250,000 but less than $3 million |
0.75 % |
$3 million but less than $15 million |
0.50 % |
$15 million and above |
0.25 % |
$1,000,000 and above |
0.10 % |
$1,000,000 and above |
0.15 % |
Aaa |
Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit
risk. |
Aa |
Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
A |
Obligations rated A are judged to be upper-medium grade and are subject to low credit risk. |
Baa |
Obligations rated Baa are judged to be medium-grade and subject to moderate credit risk and as
such may possess certain speculative characteristics. |
Ba |
Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
B |
Obligations rated B are considered speculative and are subject to high credit risk. |
Caa |
Obligations rated Caa are judged to be speculative of poor standing and are subject to very high
credit risk. |
Ca |
Obligations rated Ca are highly speculative and are likely in, or very near, default, with some
prospect of recovery of principal and interest. |
C |
Obligations rated C are the lowest rated and are typically in default, with little prospect for recovery
of principal or interest. |
P-1 |
Ratings of Prime-1 reflect a superior ability to repay short-term obligations. |
P-2 |
Ratings of Prime-2 reflect a strong ability to repay short-term obligations. |
P-3 |
Ratings of Prime-3 reflect an acceptable ability to repay short-term obligations. |
NP |
Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating
categories. |
MIG 1 |
This designation denotes superior credit quality. Excellent protection is afforded by established
cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for
refinancing. |
MIG 2 |
This designation denotes strong credit quality. Margins of protection are ample, although not as
large as in the preceding group. |
MIG 3 |
This designation denotes acceptable credit quality. Liquidity and cash-flow protection may be narrow, and market access for refinancing is likely to be less well-established. |
SG |
This designation denotes speculative-grade credit quality. Debt instruments in this category may
lack sufficient margins of protection. |
VMIG 1 |
This designation denotes superior credit quality. Excellent protection is afforded by the superior
short-term credit strength of the liquidity provider and structural and legal protections that ensure
the timely payment of purchase price upon demand. |
VMIG 2 |
This designation denotes strong credit quality. Good protection is afforded by the strong short-term
credit strength of the liquidity provider and structural and legal protections that ensure the timely
payment of purchase price upon demand. |
VMIG 3 |
This designation denotes acceptable credit quality. Adequate protection is afforded by the satisfactory short-term credit strength of the liquidity provider and structural and legal protections
that ensure the timely payment of purchase price upon demand. |
SG |
This designation denotes speculative-grade credit quality. Demand features rated in this category
may be supported by a liquidity provider that does not have a sufficiently strong short-term rating or
may lack the structural or legal protections necessary to ensure the timely payment of
purchase price upon demand. |
AAA |
An obligation rated ‘AAA’ has the highest rating assigned by S&P. The obligor’s capacity to meet its
financial commitments on the obligation is extremely strong. |
AA |
An obligation rated ‘AA’ differs from the highest-rated obligations only to a small degree. The
obligor’s capacity to meet its financial commitments on the obligation is very
strong. |
A |
An obligation rated ‘A’ is somewhat more susceptible to the adverse effects of changes in
circumstances and economic conditions than obligations in higher-rated categories. However, the
obligor’s capacity to meet its financial commitments on the obligation is still
strong. |
BBB |
An obligation rated ‘BBB’ exhibits adequate protection parameters. However, adverse economic
conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet
its financial commitments on the obligation. |
BB,
B, CCC,
CC, and C |
Obligations rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded as having significant speculative
characteristics. ‘BB’ indicates the least degree of speculation and ‘C’ the
highest. While such obligations will likely have some quality and protective
characteristics, these may be outweighed by large uncertainties or major exposure to
adverse conditions. |
BB |
An obligation rated ‘BB’ is less vulnerable to nonpayment than other speculative issues. However, it
faces major ongoing uncertainties or exposure to adverse business, financial, or economic
conditions that could lead to the obligor’s inadequate capacity to meet its
financial commitments on the obligation. |
B |
An obligation rated ‘B’ is more vulnerable to nonpayment than obligations rated ‘BB’, but the obligor
currently has the capacity to meet its financial commitments on the obligation. Adverse business,
financial, or economic conditions will likely impair the obligor’s capacity or
willingness to meet its financial commitments on the obligation. |
CCC |
An obligation rated ‘CCC’ is currently vulnerable to nonpayment and is dependent upon favorable
business, financial, and economic conditions for the obligor to meet its financial commitments on
the obligation. In the event of adverse business, financial, or economic conditions, the
obligor is not likely to have the capacity to meet its financial commitments on the
obligation. |
CC |
An obligation rated ‘CC’ is currently highly vulnerable to nonpayment. The ‘CC’ rating is used when
a default has not yet occurred but S&P expects default to be a virtual certainty, regardless of
the anticipated time to default. |
C |
An obligation rated ‘C’ is currently highly vulnerable to nonpayment, and the obligation is expected
to have lower relative seniority or lower ultimate recovery compared with obligations that are rated
higher. |
D |
An obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid capital
instruments, the ‘D’ rating category is used when payments on an obligation are not made
on the date due, unless S&P believes that such payments will be made within five
business days in the absence of a stated grace period or within the earlier of the
stated grace period or 30 calendar days. The ‘D’ rating also will be used
upon the filing of a bankruptcy petition or the taking of similar action and where
default on an obligation is a virtual certainty, for example due to automatic stay
provisions. A rating on an obligation is lowered to ‘D’ if it is subject to a distressed
debt restructuring. |
A-1 |
A short-term obligation rated ‘A-1’ is rated in the highest category by S&P. The obligor’s capacity to
meet its financial commitments on the obligation is strong. Within this category, certain obligations
are designated with a plus sign (+). This indicates that the obligor’s capacity to
meet its financial commitments on these obligations is extremely strong.
|
A-2 |
A short-term obligation rated ‘A-2’ is somewhat more susceptible to the adverse effects of changes
in circumstances and economic conditions than obligations in higher rating categories. However,
the obligor’s capacity to meet its financial commitments on the obligation is
satisfactory. |
A-3 |
A short-term obligation rated ‘A-3’ exhibits adequate protection parameters. However, adverse
economic conditions or changing circumstances are more likely to weaken an obligor’s capacity to
meet its financial commitments on the obligation. |
B |
A short-term obligation rated ‘B’ is regarded as vulnerable and has significant speculative
characteristics. The obligor currently has the capacity to meet its financial commitments; however,
it faces major ongoing uncertainties that could lead to the obligor’s inadequate
capacity to meet its financial commitments. |
C |
A short-term obligation rated ‘C’ is currently vulnerable to nonpayment and is dependent upon
favorable business, financial, and economic conditions for the obligor to meet its financial
commitments on the obligation. |
D |
A short-term obligation rated ‘D’ is in default or in breach of an imputed promise. For non-hybrid
capital instruments, the ‘D’ rating category is used when payments on an obligation are
not made on the date due, unless S&P believes that such payments will be made within
any stated grace period. However, any stated grace period longer than five business days
will be treated as five business days. The ‘D’ rating also will be used upon
the filing of a bankruptcy petition or the taking of a similar action and where default
on an obligation is a virtual certainty, for example due to automatic stay provisions. A
rating on an obligation is lowered to ‘D’ if it is subject to a distressed
debt restructuring. |
SP-1 |
Strong capacity to pay principal and interest. An issue determined to possess a very strong capacity to pay debt service is given a plus (+) designation. |
SP-2 |
Satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and
economic changes over the term of the notes. |
SP-3 |
Speculative capacity to pay principal and interest. |
D |
‘D’ is assigned upon failure to pay the note when due, completion of a distressed debt
restructuring, or the filing of a bankruptcy petition or the taking of similar action and where
default on an obligation is a virtual certainty, for example due to automatic stay
provisions. |
AAA |
Highest Credit Quality. ‘AAA’ ratings denote the lowest expectation of credit risk. They are assigned
only in cases of exceptionally strong capacity for payment of financial commitments. This capacity
is highly unlikely to be adversely affected by foreseeable events. |
AA |
Very High Credit Quality. ‘AA’ ratings denote expectations of very low credit risk. They indicate very
strong capacity for payment of financial commitments. This capacity is not significantly vulnerable
to foreseeable events. |
A |
High Credit Quality. ‘A’ ratings denote expectations of low credit risk. The capacity for payment of
financial commitments is considered strong. This capacity may, nevertheless, be more vulnerable
to adverse business or economic conditions than is the case for higher
ratings. |
BBB |
Good Credit Quality. ‘BBB’ ratings indicate that expectations of credit risk are currently low. The
capacity for payment of financial commitments is considered adequate, but adverse business or
economic conditions are more likely to impair this capacity. |
BB |
Speculative. ‘BB’ ratings indicate an elevated vulnerability to credit risk, particularly in the event of
adverse changes in business or economic conditions over time; however, business or financial
alternatives may be available to allow financial commitments to be met.
|
B |
Highly Speculative. ‘B’ ratings indicate that material credit risk is present. |
CCC |
Substantial Credit Risk. ‘CCC’ ratings indicate that substantial credit risk is present. |
CC |
Very High Levels of Credit Risk. ‘CC’ ratings indicate very high levels of credit risk. |
C |
Exceptionally High Levels of Credit Risk. ‘C’ indicates exceptionally high levels of credit risk. |
F1 |
Highest Short-Term Credit Quality. Indicates the strongest intrinsic capacity for timely payment of
financial commitments; may have an added “+” to denote any exceptionally strong credit
feature. |
F2 |
Good Short-Term Credit Quality. Good intrinsic capacity for timely payment of financial commitments. |
F3 |
Fair Short-Term Credit Quality. The intrinsic capacity for timely payment of financial commitments is
adequate. |
B |
Speculative Short-Term Credit Quality. Minimal capacity for timely payment of financial commitments, plus heightened vulnerability to near term adverse changes in financial and economic conditions. |
C |
High Short-Term Default Risk. Default is a real possibility. |
RD |
Restricted Default. Indicates an entity that has defaulted on one or more of its financial commitments, although it continues to meet other financial obligations. Typically applicable to entity
ratings only. |
D |
Default. Indicates a broad-based default event for an entity, or the default of a short-term obligation. |
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Page |
B-5 | |
B-5 | |
B-5 | |
B-5 | |
B-6 | |
B-8 | |
B-9 | |
B-9 | |
B-10 | |
B-12 | |
B-12 | |
B-13 | |
B-13 | |
B-14 | |
B-14 | |
B-15 | |
B-16 | |
B-16 | |
The purpose of this document is to provide an overarching explanation of BlackRock’s approach globally to our
responsibilities as a shareholder on behalf of our clients, our
expectations of companies, and our commitments to
clients in terms of our own governance and transparency. |
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