Rethink your income strategy

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1 Rethink your income strategy BlackRock Multi-Asset Income Fund (BIICX) 1

2 THE CHALLENGE Yields remain low Yields are low across the income landscape, with less than 25% of fixed income assets yielding over 4%. Percent of fixed income markets yielding over 4% 100% U.S. Treasury Euro Core U.S. Agencies U.S. Municipal Euro Periphery 75% 50% U.S. MBS Global Credit U.S. CMBS 25% Emerging Market Global High Yield % Risk required to generate 4% yield* 5.25% Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index Source: BlackRock Investment Institute, Barclays and Thomson Reuters, March The bars show market capitalization weights of assets with an average annual yield over 4% in a select universe that represents about 70% of the Bloomberg Barclays Multiverse Bond Index. U.S. Treasury represented by the Bloomberg Barclays U.S. Treasury index. Euro Core is based on the Bloomberg Barclays French and German government debt indexes. U.S. Agencies represented by Bloomberg Barclays U.S. Aggregate Agencies index. U.S. Municipal represented by Bloomberg Barclays Municipal Bond index. Euro Periphery is an average of the Bloomberg Barclays government debt indexes for Italy, Spain and Ireland. U.S. MBS represented by the Bloomberg Barclays U.S. Mortgage Backed Securities index. Global Credit represented by the Bloomberg Barclays Global Aggregate Corporate index. U.S. CMBS represented by the Bloomberg Barclays Investment Grade CMBS index. Emerging Market combines the Bloomberg Barclays EM hard and local currency debt indexes. Global High Yield represented by the Bloomberg Barclays Global High Yield index. * Source: Morningstar, as of 12/31/17. For illustrative purposes only. Performance data quoted represents past performance and is no guarantee of future results. Illustration assumes an investment universe of Money Funds, Core Bonds and High Yield Bonds represented by the Morningstar Taxable Money Market Funds category, Bloomberg Barclays U.S. Aggregate Bond Index and Bloomberg Barclays U.S. High Yield 2% Issuer Capped Index, respectively. You cannot invest directly in an index. Allocations determined by portfolio mix that achieves stated yield target with lowest level of risk. Risk represented by trailing 10-year annualized standard deviation. The hypothetical 4% Income Portfolio in 2007 consisted of a 96% allocation to Money Funds and the remainder allocation is not invested. In 2017 that allocation was 57% Core Bonds and 43% High Yield Bonds. 2

3 THE CHALLENGE High income assets can be volatile Concentrated positions come with downside risk. Relative value can change quickly across high income asset classes. Traditional sources of income Non-traditional sources of income BlackRock Multi- Asset Income Fund (BIICX) Average yield 2.0% 2.0% 2.3% 3.1% 4.0% 6.3% 3.8% 5.4% 5.4% 6.6% 6.6% 4.9% Average annual drawdown -4.9% -8.2% -2.6% -3.5% -8.9% -4.6% -11.7% -5.9% -1.6% -4.2% -4.0% -22.4% U.S. S&P 500 Bloomberg Treasuries Barclays Aggregate Inv. Grade Debt Dividend Equities High Yield U.S. REITS Emerging Market Debt Bank Loans MLPs Preferred Stocks Source: Morningstar and Bloomberg, yields as of 3/31/18. Data is since start of Fund s first full calendar year (1/1/2012) after the fund s strategy changed (11/28/11) through 3/31/18. For illustrative purposes only. Data represents past performance and is no guarantee of future results. Multi-Asset Income Fund yield represented by average 30-Day SEC Yield for Instl. Share Class (Subsidized). Index yields are shown for illustrative purposes only and do not predict or depict the yield of any BlackRock fund. Yields for the various asset class indices have material differences including investment objectives, liquidity, safety, guarantees of insurance, fluctuation of principal or return and tax features. Fixed income yields represented by yield-to-worst, equity yields by 12 month dividend yield while MLPs' yield consists primarily of return of capital which reduces the investors adjusted cost basis, the composition of which varies based on income, expenses, depreciation and tax elections made by the MLP based on each investor s share of the MLP s income, expenses, gains and losses. Yield data based on month-end numbers. Average annual drawdown is the average of the largest declines in value from peak to trough during each of the following periods: 2012, 2013, 2014, 2015, 2016, 2017 and YTD Additional annual drawdowns are added following an equity drawdown greater than 5% or at the close of a calendar year depending on which occurs first. See Important Notes for additional information on the indices shown. 3

4 30-day Volatility BlackRock Multi-Asset Income Fund A risk-first approach to generating income. Focused on managing risk 12% 8% Historically less risk than a 50/50 stock/bond portfolio Average 30-day volatility 4% 0% Jan-12 Jul-12 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan % 50/50 Benchmark 3.82% BLK Multi-Asset Income with a track record of competitive and consistent yield 6% 3% Average yield 4.95% BLK Multi-Asset Income 2.40% 50/50 Benchmark 0% Dec-11 Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17 Dec-17 Source: Morningstar and Bloomberg, as of 3/31/18. The fund changed to this strategy on 11/28/11. Investing involves risk. Information is subject to change. 30-Day Volatility measures the short-term standard deviation of the fund s returns. Higher deviation represents higher risk. Volatility of the 50/50 benchmark incorporates the rolling 5-year correlation of global equities and core bonds. Global equity represented by the MSCI World Index. Core bonds represented by the Bloomberg Barclays U.S. Aggregate Index. Average yield on MAI is represented by the average 30-Day SEC Yield for Instl. Share Class (Subsidized). Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. 4

A tactical unconstrained approach BlackRock Multi-Asset Income Fund seeks the best income opportunities across geographies and asset classes, quickly adapting the portfolio to changing market

5 A tactical unconstrained approach BlackRock Multi-Asset Income Fund seeks the best income opportunities across geographies and asset classes, quickly adapting the portfolio to changing market conditions. BlackRock Multi-Asset Income Fund (BIICX) Tactical asset allocation in action Increased exposure to high yield bonds in beginning part of 2012 owing to low default rate expectations and upbeat market sentiment Significant reduction in high yield exposure during elevated market risks in spring 2012 Increased covered calls for five straight months in fall 2014 to capitalize on higher market volatility Reduced global equity in the first half of 2016 amid rich valuations and global growth uncertainty 100% 90% 80% Asset Class Current High Low Bank Loans/CLOs 12% 13% 0% EM Debt 6% 7% 1% Non-Agency/CMBS 13% 16% 0% 70% 60% Preferred Stock 11% 12% 5% Covered Calls 14% 21% 0% Global REITs 2% 4% 0% 50% 40% MLPs 3% 7% 1% U.S. Equity 3% 11% 3% Intl Equity 7% 16% 6% 30% 20% EM Equity 3% 8% 1% Global High Yield 16% 55% 12% Inv. Grade Bonds 8% 20% 0% 10% 0% -10% -20% Agency/Govt. 1% 8% 0% Cash 0% 11% 0% Equity Hedges -6% -13% 0% Duration Hedges 0% -21% 0% Currency Hedges -4% -6% 0% -30% Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Source: BlackRock. As of 03/31/18. Not a recommended allocation. Subject to change. Asset class exposure shown as a percent of market value. Hedging strategies and other exposures shown as a percent of notional value. 5

Protection during sell-offs BlackRock Multi-Asset Income Fund (BIICX) BlackRock Multi-Asset Income Fund has a proven record of protecting during down markets for both stock market and bond market

6 Protection during sell-offs BlackRock Multi-Asset Income Fund (BIICX) BlackRock Multi-Asset Income Fund has a proven record of protecting during down markets for both stock market and bond market downturns. Equity sell-offs Drawdown during equity market downturns Market downturn (date) BlackRock Multi-Asset Income Fund 50/50 Benchmark MSCI World European Sovereign Debt Crisis (Q2 2012) -4.0% -5.4% -12.5% U.S. Fiscal Cliff Showdown (Q4 2012) -2.1% -2.9% -6.3% BLK Multi-Asset Income -4.2% 50/50 Benchmark -4.9% MSCI World -10.0% U.S. Taper Tantrum (Q2 2013) -4.9% -5.4% -7.7% Energy Sell-Off (2H 2014) -3.6% -4.0% -9.3% Global Growth Fears (2Q2015 1Q2016) -8.9% -8.4% -18.0% Brexit (Q2 2016) -2.2% -3.2% -7.4% Inflation Scare (Q1 2018) -3.8% -5.2% -9.1% Bond sell-offs Average returns during rising interest rates 10-yr treasury move (date) Bloomberg Barclays US Aggregate 2.4% BLK Multi-Asset Income 2.7% Bloomberg Barclays US Aggregate -2.0% +57 bps (12/19/11 3/19/12) 7.3% -0.3% +45 bps (7/25/12 9/14/12) 4.5% -0.7% +49 bps 11/15/12 3/11/13) 6.7% -0.9% +132 bps (5/1/13 9/5/13) -2.2% -4.9% +53 bps (10/23/13 12/31/13) 1.8% -1.1% +74 bps (2/2/15 6/9/15) 0.6% -2.3% +110 bps (8/10/16 12/15/16) 0.2% -4.1% +64 bps (10/13/17 2/15/18) 0.6% -2.2% Source: Morningstar and Bloomberg, as of 3/31/18. Data is since inception of the Fund s current strategy (11/28/11). Benchmark is 50% MSCI World Index and 50% Bloomberg Barclays U.S. Aggregate Index. Fund performance based on BlackRock Multi-Asset Income Fund Inst. Share Class (BIICX). Performance data quoted represents past performance and does not guarantee future results. Performance for drawdown and rising rate periods not annualized. Periods of market stress include any S&P 500 Index peak to trough drawdowns greater than 5%. Rising rate periods include periods with the maximum of at least a 40 bps increase in 10-year Treasury from start date to end date within a 90 day rolling window. 6

70% Risk Multi-Asset Income 4.77% Yield 4.02% Risk 30/70 Risk benchmark 2.77% Yield 5.14% Risk Dynamic High Income 6.29% Yield 7.85% Risk 50/50 Risk benchmark 2.77% Yield 7.

7 Low Yield High A diverse income platform for investors BlackRock offers a series of income portfolios to help meet the risk profile and income needs of different investors. BlackRock Multi-Asset Income Fund (BIICX) 7% Managed Income Fund Multi-Asset Income Fund Dynamic High Income Fund Consistent income Core income High income Managed Income 3.74% Yield 1.70% Risk Multi-Asset Income 4.77% Yield 4.02% Risk 30/70 Risk benchmark 2.77% Yield 5.14% Risk Dynamic High Income 6.29% Yield 7.85% Risk 50/50 Risk benchmark 2.77% Yield 7.51% Risk 70/30 Risk benchmark 2.63% Yield 10.36% Risk % Dynamic High Income Multi-Asset Income Managed Income Lowest expense quartile Expenses represented as Net, including investment related expenses for Inst. shares. Low Volatility (ex-ante risk*) High Total expenses as stated in the funds most recent prospectus are: 1.45% for Managed Income Fund (Inst.); 0.70% for Multi-Asset Income Fund (Inst.); and 1.07% for Dynamic High Income Fund (Inst.). Source: BlackRock, Morningstar as of 3/31/18. For illustration purposes only. Past performance is no guarantee of future results. * Ex-ante risk is an estimate of a portfolios annualized standard deviation based on its exposure to 2,200 risk factors in BlackRock s proprietary risk model. Risk factors are objective, measurable characteristics of a security that historically have had explanatory power of volatility. Exposures to these risk factors are aggregated, with correlations taken into account, to arrive at an estimate of total standard deviation at the portfolio level. Yields for Managed Income, Multi-Asset Income and Dynamic High Income are represented by trailing 12-month distribution yields as of 3/31/18. Benchmark yields represented by yield-to-worst for fixed income and by 12 month dividend yield for equity. Allocations for the risk benchmarks are as follows: 30% S&P 500 & 70% Bloomberg Barclays U.S. Aggregate Bond Index for Managed Income, 50% MSCI World & 50% Bloomberg Barclays U.S. Aggregate Bond Index for Multi-Asset Income, and 70% MSCI World & 30% Bloomberg Barclays U.S. Aggregate Bond Index for Dynamic High Income. 1 Source: Morningstar. As of 3/31/18. Current fee rankings may vary based on recent and frequent prospectus updates to the funds within the respective Morningstar categories. Analysis based only on institutional shares of BlackRock Managed Income Fund, BlackRock Multi-Asset Income Fund and BlackRock Dynamic High Income Fund vs. institutional shares of active funds within their respective Morningstar categories. Expenses are based on the funds most recent prospectus net expense ratios, excluding investment dividend expense, interest expense, and certain other fund expenses. Morningstar category net expense ratio also excludes these expenses. Includes active open-end mutual funds only, and excludes index funds. Institutional shares may not be available to all retail investors. Performance for different share classes may vary. 7

BlackRock Multi-Asset Income Fund Inst: BIICX A: BAICX C: BCICX As of 3/31/18 Morningstar Analyst Rating Average annual total returns (%) 1 year 3 year 5 year Strategy inception (11/28/11)* Fund

8 BlackRock Multi-Asset Income Fund Inst: BIICX A: BAICX C: BCICX As of 3/31/18 Morningstar Analyst Rating Average annual total returns (%) 1 year 3 year 5 year Strategy inception (11/28/11)* Fund inception (4/7/08) BlackRock Multi-Asset Income Fund (Inst.) Blended Benchmark Morningstar Tactical Allocation Category Day SEC Yield (Inst) Subsidized = 4.85% Unsubsidized = 4.76% *Strategy inception reflects date of current PM takeover; the fund s annual total returns prior to 11/28/11 reflect a different investment strategy. Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Refer to website at to obtain performance data current to the most recent month-end. Returns include reinvestment of dividends and capital gains. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Total annual operating expenses for Multi-Asset Income Fund (Inst.) as of the most recent prospectus are 0.70%. 30-Day SEC Yield (subsidized) The calculation is based on a 30-day period ending on the last day of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. If the fund expenses have waivers, the subsidized yield is based on the net expenses. 30-Day SEC Yield (unsubsidized) This calculation is based on total expenses of the fund. Source: Morningstar. All data as of 3/31/18. Past performance is no guarantee of future results. This presentation should be limited to those institutions who are eligible to invest in Inst. Shares. The Blended Benchmark represents 50% MSCI World/50% Barclays US Aggregate Index. The Net Expense Ratio including Investment Related Expenses are 0.57% for the Institutional share class and 0.82% for the A share class. Index performance is shown for illustrative purposes only. Morningstar has awarded the Fund a Bronze medal. Fewer than 10% of US open-end funds hold medalist ratings. (Effective May 24, 2017) 1 8

9 Standardized performance as of 3/31/18 Managed Income Fund INST: BLDIX A: BLADX C:BMICX Average annual total returns (%) 1-year 3-year 5-year 10-year Since inception (10/19/07) BLK Managed Income Fund (Inst) Morningstar Allocation 15% to 30% Equity Category Avg Blended Benchmark * BLK Managed Income Fund 30-Day SEC Yield (Inst) Subsidized = 3.69% Unsubsidized = 3.28% Dynamic High Income Fund INST: BDHIX A: BDHAX C:BDHCX Average annual total returns (%) 1-year 3-year 5-year Since inception (11/3/14) BLK Dynamic High Income Fund (Inst) Morningstar World Allocation Category Avg Blended Benchmark BLK Dynamic High Income Fund 30-Day SEC Yield (Inst) Subsidized = 6.39% Unsubsidized = 6.21% 30-Day SEC Yield (subsidized) The calculation is based on a 30-day period ending on the last day of the previous month. It is computed by dividing the net investment income per share earned during the period by the maximum offering price per share on the last day of the period. If the fund expenses have waivers, the subsidized yield is based on the net expenses. 30-Day SEC Yield (unsubsidized) This calculation is based on total expenses of the fund. Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Refer to website at to obtain performance data current to the most recent month-end. Returns include reinvestment of dividends and capital gains. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Total annual operating expenses for Managed Income Fund (Inst.) as of the most recent prospectus are 1.45% and 1.07% for Dynamic High Income Fund (Inst.) * The Blended Benchmark represents 30% S&P 500 Index/70% Bloomberg Barclays US Aggregate Index. The Blended Benchmark represents 70% MSCI World/30% Bloomberg Barclays US Aggregate Index. The Net Expense Ratio including Investment Related Expenses are 0.57% for the Multi-Asset Income Fund (Inst.); 0.49% for the Managed Income Fund (Inst.); and 0.74% for the Dynamic High Income Fund (Inst.). The Net Expense Ratio excluding Investment Related Expenses is 0.55% for the Multi-Asset Income Fund; 0.44% for the Managed Income Fund (Inst.); and 0.65% for Dynamic High Income Fund (Inst.). Investment Related Expenses include acquired fund fees of 0.02% for Multi-Asset Income Fund (Inst.); 0.19% for Managed Income Fund (Inst.); 0.09% for Dynamic High Income Fund (Inst.), and interest expense (cost of borrowing securities to seek to enhance return or reduce risk) of 0.00% for all funds, and certain other expenses, if applicable. Expenses stated as of the fund s most recent prospectus. The difference between gross and net expense ratios are due to contractual and/or voluntary waivers, if applicable. Multi-Asset Income Fund (Inst.) have contractual waivers with an end date of 11/30/18; Managed Income Fund (Inst.) 4/30/2018; and Dynamic High Income Fund 11/30/18 terminable upon 90 days notice. BlackRock may agree to voluntarily waive certain fees and expenses, which the adviser may discontinue at any time without notice. 9

10 Important notes Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. Important Risks of the Funds: The funds are actively managed and their characteristics will vary. These Funds may invest significantly in BlackRock equity and/or fixed income mutual funds ( underlying funds ) and affiliated and unaffiliated ETFs. As such, it is subject to the risks associated with the underlying BlackRock funds in which they invests. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves special risks including, but not limited to political risks, currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Fixed income risks include interest-rate and credit risk. Typically, when interest rates rise, there is a corresponding decline in bond values. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. Asset allocation strategies do not assure profit and do not protect against loss. Non-diversification of investments means that more assets are potentially invested in fewer securities than if investments were diversified, so risk is increased because each investment has a greater effect on performance. These funds may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. Non-investment-grade debt securities (high-yield/junk bonds) may be subject to greater market fluctuations, risk of default or loss of income and principal than higherrated securities. Additional Risks for the Dynamic High Income Fund: Covered call risk is the risk that the issuer will forgo any profit from increases in the market value of the security covering the call option but retain the risk of loss if the security declines in value. A number of factors may influence the option holder s decision to exercise the option, including the value of the security, price volatility, dividend yield and interest rates. To the extent that these factors increase the value of the call option, the option holder is more likely to exercise the option, which may negatively affect the fund. 1 The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar's analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst's overall assessment and is overseen by Morningstar's Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar's global coverage universe. The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A "Bronze"-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. Analyst Ratings are evaluated at least every 14 months. "For more detailed information about Morningstar's Analyst Rating, including its methodology, please go to The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar's current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar's expectations not to occur or to differ significantly from what we expected. Must be preceded or accompanied by a prospectus for BlackRock Multi-Asset Income Fund, BlackRock Managed Income Fund and BlackRock Dynamic High Income Fund BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners. Prepared by BlackRock Investments, LLC, member FINRA. Not FDIC Insured May Lose Value No Bank Guarantee 10

Global Allocation Fund

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