BlackRock Model Portfolios FA Presentation The information shown does not constitute investment advice, does not consider the investment objectives, risk.

FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

BlackRock Model Portfolios

FA Presentation

The information shown does not constitute investment advice, does not consider the investment objectives, risk tolerance or financial circumstances of any specific investor and cannot be shown to current or prospective investors or clients. The information shown does not supplant the obligation of a Financial Advisor to interpose its own best judgment in making investment decisions or investment recommendations for its clients. Before making an investment decision or recommendation for any of its clients, the Financial Advisor should have a reasonable basis for any such decision or recommendation without having relied on information from BlackRock and should take into account the client’s circumstances, objectives and risk tolerance to ensure the security or other investment is suitable for the client. BlackRock is not, and will not be, responsible for the accuracy, completeness, or use of any information provided herein, and BlackRock does not make any warranty, express or implied, concerning such information. BlackRock is not acting as an investment adviser or fiduciary to the Financial Advisor or its clients in connection with the provision of the information contained herein or the investment by such clients in any fund identified herein. Financial Advisors should not state or imply that BlackRock has made or endorsed any investment decision or recommendation, whether on specific funds or other investments or on a client’s portfolio as a whole, or otherwise has any relationship or obligations to any of the Financial Advisor’s clients.

FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION. 2

Trend Towards FA-Driven Advisory

Trend: “Rep-as-Portfolio Manager” and “Rep-as-Advisor” are the fastest growing advisory platforms ($1.1T @ 38% 2-year growth rate)

Implications: Important changes in FA buying behavior:

FA’s manage model portfolios

Increased use of ETFs alongside mutual funds

Increased Tactical Asset Allocation

FAs seek asset allocation guidance


Portfolio Implementation is Challenging

FAs need two things to succeed

Carefully managed

Risk managed

Focused on client goals

Tactical asset allocation

Scalable and easy to implement

FA is center of value proposition

Keep expenses low for client

No overlay fee

Quality investment solutions Scale business

1 2


The BlackRock Advantage

BlackRock is uniquely positioned to partner with you to grow your business

Introducing BlackRock Model Portfolios

What are they?

How do I use them?

Why BlackRock?

Asset allocation guidance

Combines iShares ETFs with select active mutual funds

Tactically updated

Delivered through an exclusive FA-only web portal

Implemented by FA with no overlay fee*

Supported by our field based wholesalers

ETFs + MFs

Risk management is our core competency

Wholesaler support – partner with you to scale business

*Buying or selling shares of iShares Funds will result in brokerage commissions.


Subscribe to Models for Tactical Updates

Sample screenshots are for illustrative purposes only

Step 1: Log In: To gain access to BlackRock Model Portfolios, visit iShares.com/model portfolios

Step 2: Subscribe to the Model Portfolios That Interest You

Step 3: Follow the E-mail Updates

FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

Model Portfolios – Income Solutions

Target Income Models – Available Active/Index and Index Only

Hedged-Risk Income Models – Available Active/Index and Index Only

Portfolio I Core Income

Portfolio II Moderate Income

Portfolio III High Income

Portfolio IV Agg. Income

Current Yield Objective after Expenses* 2.0% + 0.25% 3.0% + 0.25% 4.0% + 0.25% 5.0% + 0.25%

Volatility-HedgedIncome

Rising Rates-Hedged Income

Inflation-Hedged Income

Current Yield Objective after Expenses* 4.0% + 0.25% 4.0% + 0.25% 4.0% + 0.25%

*Please see important notes at the end of this presentation

6

Tax Aware Target Income Models – Available Active/Index

Portfolio I Tax Aware Core

Income

Portfolio II Tax Aware

Moderate Income

Portfolio III Tax Aware High

Income

Portfolio IV Tax Aware

Agg. Income

Tax Equivalent Yield Objective After Expenses* 2.0% + 0.25% 3.0% + 0.25% 4.0% + 0.25% 5.0% + 0.25%


Model Portfolios – Tactical & Strategic Solutions

Strategic Models – Available Index Only

Conservative Moderate

Conservative Moderate

Moderate Aggressive

Aggressive

Tactical Equity Model – Available Index Only

Tactical Equity


BlackRock Model Portfolio Solutions Team

Russ Koesterich, CFARuss is the Global Chief Investment Strategist for BlackRock and the co-head of the BlackRock Model Portfolios Solutions team

Daniel Morillo, PhDDaniel is the Global Head of Investment Research and co-head of the Model Portfolio Solutions business.

The Model Portfolios are managed by the Blackrock Model Portfolio Solutions team

• Led by Daniel Morillo and Russ Koesterich

• The team has nine members, including 7 PhDs and 3 CFA charterholders


Investment Process: Starts with a Portfolio Goal

Four-step Investment ProcessTarget Income Portfolio IV – Aggressive Income

1 ESTABLISH PORTFOLIO GOALS 5% + 0.25% current yield objective after expenses*

2 DEFINEINVESTMENT UNIVERSE

• Fixed income only• All iShares and BlackRock mutual fund across

K̶ TreasuriesK̶ Credit

3 MINIMIZEVOLATILITY Attempt to minimize volatility by optimizing across 3 factors:

1. Yield of each ETF / MF

2. Volatility of each ETF / MF

3. Correlations across all ETFs / MFs

4 TACTICALLY RE-ALLOCATE • BlackRock tactically re-allocates the model portfolios as market

conditions change• Subscribers to our service receive exclusive tactical updates from

our portfolio managers

K̶ Asset Backed SecuritiesK̶ Non-US Government

*Please see important notes at the end of this presentation. Investment process represents the current investment process for BlackRock Model Portfolios and is subject to change.

Target Income Model Portfolio III – High Income


As of February 14, 2013. Information shown represents the Target Income Model's current asset class breakdown and is subject to change.Asset allocation strategies do not assure profit or protect against loss.*See important notes at the end of this presentation.

7 to 10 Tickers

Targeted exposures

Quarterly tactical updates

50% to 100% annual turnover

ETF

Mutual Fund

Target Income Portfolio IIICurrent yield objective = 4% +/- 0.25%

BlackRock Floating Rate Income Fund BFRIX;

10.0%

BlackRock GNMA Fund BGNIX; 15.0%

BlackRock High Yield Bond Fund BHYIX; 20.0%

iShares Barclays 1-3 Year Credit Bond Fund CSJ; 13.4%

iShares iBoxx $ High Yield Corporate Bond Fund HYG;

5.0%

iShares iBoxx $ Investment Grade Corporate Bond Fund

LQD; 6.6%

iShares Barclays MBS Bond Fund MBB; 5.0%

iShares Barclays 1-3 Year Treasury Bond Fund SHY;

20.0%

iShares Barclays 20+ Year Treasury Bond Fund TLT; 5.0%

Inflation-Hedged Income Model Portfolio

ETF

Mutual Fund


Inflation-Hedged IncomeCurrent yield objective = 4% +/- 0.25%

BlackRock Floating Rate Income Fund BFRIX; 7.1%

BlackRock High Yield Bond Fund BHYIX; 20.0%

BlackRock Inflation Protected Bond Fund BPRIX; 16.5%

iShares DJ EPAC Select Dividend Index Fund IDV; 12.9%

iShares S&P Global Infrastructure Index Fund IGF; 5.0%

iShares S&P Global Energy IXC; 15.5%

iShares S&P Global Utilities Sector JXI, 15.3%

iShares Emerging Markets Local Currency Bond Fund LEMB; 7.7%

Sector equities that hedge inflation risk…but the trade-off is higher volatility

As of February 14, 2013. Information shown represents the Target Income Model's current asset class breakdown and is subject to change.Asset allocation strategies do not assure profit or protect against loss.*See important notes at the end of this presentation.

Target Income models: Yield vs. Risk

Fixed Income portfolios that seek a superior risk-return profile as compared to the Barclays US Aggregate Bond Index.

As of February 14, 2013. Please see important notes at the end of this presentation. Index returns are for illustrative purposes only. Indexes are unmanaged and one cannot invest directly in an index.

1% 2% 3% 4% 5% 6% 7% 8%0%

1%

2%

3%

4%

5%

6%

Total Standard Deviation

Cu

rre

nt

Yie

ld O

bje

cti

ve

Barclays US Aggregate Bond Index

Portfolio ICore

Income

Portfolio IIModerate Income

Portfolio IIIHigh Income

Portfolio IVAggressive Income



Risk Analytics

BlackRock is a leader in institutional risk management

BlackRock Solutions® provides independent risk management and enterprise investment services for over $13 trillion in assets*

Institutional clients need to understand sources of risk

Risk Contribution**

Barclays US AggregateBond Index

• Concentrated risk exposure

• >100% is Rate Risk

*Assets as of December 31, 2012 **Please see important notes at the end of this presentation.All figures as of February 14, 2013. See Model Portfolios website for most up to date information. Asset allocation strategies do not assure profit and do not protect against losses. It is not possible to invest directly in an index.

Portfolio I Core Income

Portfolio II Moderate Income


Portfolio IV Aggressive

Income

Barclays US Aggregate Bond Index

Total Standard Deviation** 1.86% 2.83% 5.74% 6.89% 2.45%

Rate Risk Contribution 0.67% 1.00% 3.32% 0.70% 2.54%

Credit Risk Contribution 1.04% 1.61% 1.71% 5.40% -0.15%

FX Risk Contribution – 0.01% 0.52% 0.58% –

Other 0.14% 0.21% 0.18% 0.21% 0.06%


A case study in Active-Index investing

• Most high yield bonds are illiquid

K̶ There are >1800 bonds in Barclays US High Yield Index

• Active manager can seek alpha via credit research in illiquid securities

• ETF provides efficient liquid exposure as tactical changes are implement

Active–Index: High Yield Case Study

BlackRock is a world leader in Active-Index investing

• ETFs can reduce active risk and lower expense ratios. ETFs are 50% to 70% of the models

• Mutual funds can add alpha and obtain exposures ETFs cannot

BHYIX (MF)BlackRock High Yield Bond Fund

20% strategic allocation

HYG (ETF)iShares iBoxx $ High Yield Corporate Bond Fund"

0 to 10% tactical allocation

High Yield Fixed Income Portfolio II - Moderate Income Model

20%

20%

0-10%

This information should not be relied upon as research, investment advice or a recommendation regarding any security in particular. This information is subject to change. Please see important notes at the end of this presentation.


Subscribe to Models for Tactical Updates

Sample screenshots are for illustrative purposes only

Step 1: Log In: To gain access to BlackRock Model Portfolios, visit iShares.com/model portfolios

Step 2: Subscribe to the Model Portfolios That Interest You

Step 3: Follow the E-mail Updates


Capabilities Brochure

Resources to Support Your Business

Sample screenshots are for illustrative purposes only.

Client-Approved Quarterly Tactical Update

Weekly Investment Commentary from Russ

Koesterich

Appendix

FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION

Risk Contribution Factors

18

As of February 14, 2013 Please see important notes at the end of this presentation.


Betas

Barclays Aggregate

Bond Index*

Portfolio I Core

Income

Portfolio II ModerateIncome

Portfolio III High

Income


Income

Beta to 10-Year Treasuries -2.94 -0.63 -0.64 -2.17 0.26

Beta to 2-Year Inflation Expectations -0.36 0.37 0.47 0.38 1.32

Beta to Investment Grade Credit Spreads -0.17 -1.29 -2.24 -3.31 -6.70

Beta to S&P 500 Index 0.00 0.07 0.11 0.15 0.32

Beta to USDX (US Dollar Currency Index) -0.08 -0.10 -0.12 -0.21 -0.34

19



Beta to 10-year Treasury Rate

-3.5

-3

-2.5

-2

-1.5

-1

-0.5

0

0.5

-2.94 -0.63 -0.64 -2.170.26

Barclays Aggregate Bond Index

Portfolio I Core

Income

Portfolio II Moderate

Income



Income

20



Beta to Investment Grade Credit Spreads

There’s no “free lunch”

Risk management does not mean avoiding risk

It means understanding the risks you are taking and consciously making those trade-offs

-8

-7

-6

-5

-4

-3

-2

-1

0-0.17 -1.29 -2.24 -3.31 -6.7

Barclays Aggregate Bond Index

Portfolio I Core

Income

Portfolio II Moderate

Income

Portfolio III High

Income

Portfolio IV

AggressiveIncome

21



Standardized Performance of Underlying Holdings Target Income Model Portfolios (3/31/13)

Ticker Mutual Fund/ETF Inception Date

30 Day SEC Yield

Expense Ratio

1 Year Returns

5 Year Returns

10 Year Returns

Since Inception

NAV Market Price NAV Market

Price NAV MarketPrice NAV Market

Price

CLY iShares 10+ Year Credit Bond Fund 12/8/2009 4.46% 0.20% 9.28% 9.39% - - - - 10.67% 10.58%

CSJ iShares Barclays 1-3 Year Credit Bond Fund 1/5/2007 0.67% 0.20% 2.06% 1.98% 3.36% 3.22% - - 3.91% 3.90%

EMHY iShares Emerging Markets High Yield Bond Fund 4/3/2012 5.40% 0.65% - - - - - - 12.96% 14.05%

HYG iShares iBoxx $ High Yield Corporate Bond Fund 4/4/2007 4.89% 0.50% 11.35% 11.14% 8.76% 8.32% - - 6.89% 6.84%

LEMB iShares Emerging Markets Local Currency Bond Fund 10/18/2011 4.23% 0.60% 7.13% 6.11% - - - - 7.41% 8.21%

MBB iShares Barclays MBS Bond Fund 3/13/2007 2.95% 0.26% 1.82% 1.70% 4.78% 4.75% - - 5.10% 5.09%

LQD iShares iBoxx $ Investment Grade Corporate Bond Fund 7/22/2002 2.88% 0.15% 7.83% 7.73% 8.07% 7.69% 5.94% 5.92% 6.50% 6.50%

QLTC iShares B - Ca Rated Corporate Bond Fund 4/24/2012 5.60% 0.55% - - - - - - 12.24% 11.21%

SHY iShares Barclays 1-3 Year Treasury Bond Fund 7/22/2002 0.12% 0.15% 0.49% 0.53% 1.60% 1.59% 2.56% 2.55% 2.66% 2.66%

IEI iShares Barclays 3-7 Year Treasury Bond Fund 1/5/2007 0.64% 0.15% 2.79% 2.79% 4.39% 4.38% - - 5.95% 5.95%

IEF iShares Barclays 7-10 Year Treasury Bond Fund 7/22/2002 1.52% 0.15% 5.76% 5.74% 6.41% 6.39% 5.87% 5.86% 6.25% 6.25%

TLT iShares Barclays 20+ Year Treasury Bond Fund 7/22/2002 2.90% 0.15% 7.47% 7.74% 8.19% 8.10% 7.32% 7.29% 7.82% 7.82%

BFRIX BlackRock Floating Rate Income Fund 3/18/2011 4.65% 0.81% 7.21% - 5.57% - 5.37% - - -

BGNIX BlackRock GNMA Fund 5/18/1998 1.55% 0.82% 3.00% - 6.00% - 5.34% - 5.99% -

BHYIX BlackRock High Yield Bond Fund 11/19/1998 5.40% 0.64% 13.82% - 11.25% - 10.11% - 8.17% -

The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.iShares.com or www.blackrock.com. Shares of iShares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Market returns are based upon the midpoint of the bid/ask spread at 4:00 p.m. eastern time (when NAV is normally determined for most iShares Funds), and do not represent the returns you would receive if you traded shares at other times.

http://www.ishares.com/

http://www.blackrock.com/


Standardized Performance of Underlying Holdings Tax-Aware Target Income Model Portfolios (3/31/13)


30 Day SEC Yield

Tax Equivalent30 Day SEC Yield

Expense Ratio

1 Year Returns 5 Year Returns 10 Year Returns Since Inception



Price

BGNIX BlackRock GNMA Fund 5/18/1998 1.55% 2.74% 0.82% 3.00% - 6.00% - 5.34% - 5.99% -

BHYIX BlackRock High Yield Bond Fund 11/19/1998 5.40% 9.54% 0.64% 13.82% - 11.25% - 10.11% - 8.17% -

BFRIX BlackRock Floating Rate Income Fund 3/18/2011 4.65% 8.22% 0.81% 7.21% - 5.57% - 5.37% - - -

HYG iShares iBoxx $ High Yield Corporate Bond Fund 4/4/2007 4.89% 8.64% 0.50% 11.35% 11.14% 8.76% 8.32% - - 6.89% 6.84%

MALMX BlackRock Short-Term Municipal Fund 11/2/1979 0.11% 0.19% 0.50% 0.67% - 1.85% - 2.08% - 4.40% -

MANLX BlackRock National Municipal Fund 11/2/1979 2.62% 4.63% 0.71% 6.80% - 6.76% - 5.48% - 7.53% -

MAYHX BlackRock High Yield Municipal Fund 8/1/2006 4.00% 7.07% 0.80% 10.76% - 7.58% - - - 4.69% -

MBB iShares Barclays MBS Bond Fund 3/13/2007 2.95% 5.21% 0.26% 1.82% 1.70% 4.78% 4.75% - - 5.10% 5.09%

MUB iShares S&P National AMT-Free Municipal Bond Fund 9/7/2007 1.69% 2.99% 0.25% 4.63% 3.52% 5.67% 5.48% - - 5.25% 5.19%

SHY iShares Barclays 1-3 Year Treasury Bond Fund 7/22/2002 0.12% 0.21% 0.15% 0.49% 0.53% 1.60% 1.59% 2.56% 2.55% 2.66% 2.66%

SUB iShares S&P Short Term National AMT-Free Municipal Bond Fund 11/5/2008 0.23% 0.41% 0.25% 0.95% 0.71% - - - - 2.57% 2.57%





Standardized Performance of Underlying Holdings Hedged-Risk Income Model Portfolios (3/31/13)


30 Day SEC Yield

Expense Ratio

1 Year Returns 5 Year Returns 10 Year Returns Since Inception



Price

CLY iShares 10+ Year Credit Bond Fund 12/8/2009 4.46% 0.20% 9.28% 9.39% - - - - 10.67% 10.58%

CSJ iShares Barclays 1-3 Year Credit Bond Fund 1/5/2007 0.67% 0.20% 2.06% 1.98% 3.36% 3.22% - - 3.91% 3.90%

HYG iShares iBoxx $ High Yield Corporate Bond Fund 4/4/2007 4.89% 0.50% 11.35% 11.14% 8.76% 8.32% - - 6.89% 6.84%

IDV iShares Dow Jones International Select Dividend Index Fund 6/11/2007 5.21% 0.50% 10.48% 10.34% 1.00% 1.20% - - -1.12% -1.06%

IGF iShares S&P Global Infrastructure Index Fund 12/10/2007 3.50% 0.48% 9.36% 9.42% 0.02% 0.01% - - -1.97% -1.96%

IXC iShares S&P Global Energy Sector Index Fund 11/12/2001 2.19% 0.48% 3.16% 3.00% 0.67% 0.70% 12.52% 12.47% 10.05% 10.05%

IXP iShares S&P Global Telecommunications Sector Index Fund 11/12/2001 4.63% 0.48% 11.58% 11.20% 2.43% 2.46% 9.56% 9.46% 4.61% 4.61%

JXI iShares S&P Global Utilities Sector Index Fund 9/12/2006 3.99% 0.48% 5.97% 5.50% -3.31% -3.36% - - 1.30% 1.28%

LEMB iShares Emerging Markets Local Currency Bond Fund 10/18/2011 4.23% 0.60% 7.13% 6.11% - - - - 7.41% 8.21%

LQD iShares iBoxx $ Investment Grade Corporate Bond Fund 7/22/2002 2.88% 0.15% 7.83% 7.73% 8.07% 7.69% 5.94% 5.92% 6.50% 6.50%

MBB iShares Barclays MBS Bond Fund 3/13/2007 2.95% 0.26% 1.82% 1.70% 4.78% 4.75% - - 5.10% 5.09%

OEF iShares S&P 100 Index Fund 10/23/2000 2.04% 0.20% 12.41% 12.36% 5.15% 5.06% 7.29% 7.29% 1.61% 1.61%

PFF iShares S&P U.S. Preferred Stock Index Fund 3/26/2007 5.62% 0.48% 10.29% 10.22% 6.85% 6.47% - - 3.86% 3.87%

TLT iShares Barclays 20+ Year Treasury Bond Fund 7/22/2002 2.90% 0.15% 7.47% 7.74% 8.19% 8.10% 7.32% 7.29% 7.82% 7.82%

BFRIX BlackRock Floating Rate Income Fund 3/18/2011 4.65% 0.81% 7.21% - 5.57% - 5.37% - - -

BGNIX BlackRock GNMA Fund 5/18/1998 1.55% 0.82% 3.00% - 6.00% - 5.34% - 5.99% -

BHYIX BlackRock High Yield Bond Fund 11/19/1998 5.40% 0.64% 13.82% - 11.25% - 10.11% - 8.17% -

BPRIX BlackRock Inflation Protected Bond Fund 6/28/2004 0.60% 0.57% 5.24% - 5.79% - - - 6.83% -

MADVX BlackRock Equity Dividend Fund 11/29/1988 1.99% 0.72% 12.59% - 5.30% - 10.77% - 9.89% -





Important Notes

This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) the iShares Funds, (ii) the use or suitability of the model portfolios or (iii) any security in particular. Only an investor and their financial advisor know enough about their circumstances to make an investment decision.

The model portfolios, allocations and data are subject to change. Data shown is for informational purposes only, does not represent an actual account, and is not the result of any actual trading. Actual investment outcomes may vary. The financial professional assumes full responsibility in determining the suitability and fitness of each fund, other security, account or model chosen by the financial professional. Information on previous allocations and model changes is available upon request.

Current Yield Objective: While each current yield objective was determined with reference to the current yields of the underlying funds, it is specific to each model and is not a prediction of fund or model yield or reflective of actual results. Realized yields will vary and may be lower. Past performance is not predictive of future results.

Standard Deviation: Standard deviation for the model portfolio is a statistical estimate measuring how dispersed returns are around an average. Standard deviation is estimated using the risk factor exposures and volatilities of the underlying funds, based on BlackRock Solutions multi-asset class risk models, and takes into account the correlations of these factors across the portfolio. Standard deviation is not meant to be a prediction of fund or model volatility and actual volatility of any portfolio based in whole or in part on the models shown will vary and may be higher.

Risk Component Contribution: Contribution to risk measures the historical changes to risk associated with changes in a particular risk factor. Time period used was 5/31/08 to 02/14/13. For funds launched after 5/31/08, time period used was since inception to 02/14/13. Risk contributions are designed to sum to equal the total volatility of the portfolio. Past performance does not guarantee future results. Risk contribution factors here are:

• Total standard deviation of the portfolio is the sum of the risk contributions across rate, credit, FX and other risk.• Rate risk contributions, which capture volatility associated with portfolio covariation with benchmark government interest rates.• Credit risk contributions, which capture volatility associated with portfolio covariation with investment grade, high yield and distressed debt credit spreads over

benchmark interest rates.• FX risk contributions, which capture volatility associated with portfolio covariation with foreign exchange rate fluctuations.• Other risk contributions capture the remaining portion of volatility that is idiosyncratic relative to Rate, Credit and FX risk.

Beta: The Beta of a portfolio is a number describing the historical volatility of that portfolio in relation to the volatility of a selected benchmark. Time period used was 5/31/08 to 02/14/13. For funds launched after 5/31/08, time period used was since inception to 02/14/13. A positive beta indicates a tendency for there to be co-movement with the benchmark, while a negative beta indicates that the portfolio and the benchmark tend to move in opposite directions. For example then, a beta of +2 would indicate that for a given percentage change in the benchmark, the change in the value of the portfolio has historically tended to be twice that. Past performance does not guarantee future results.

The Beta to the S&P 500 Index measures the portfolio’s sensitivity to changes in the value of the S&P 500 index.

The Beta to 10-year Treasury Interest Rate measures the portfolio’s sensitivity to changes in the 10-year maturity US Treasury bond interest rate.

The Beta to 2-Year Inflation Expectations measures the portfolio’s sensitivity to changes in the market interest rate spread between 2-year US Treasuries and the 2-year US Treasury Inflation Protected Security.

The Beta to Investment Grade Spreads measures the portfolio’s sensitivity to changes in the credit spread of a diversified US investment grade bond index, as measured by the J.P. Morgan US Liquid Index.

The Beta to USDX (US Dollar Currency Index) measures the portfolio’s sensitivity to changes in the value of the US Dollar Index, which measures the average change in value of the USD versus major world currencies.


Carefully consider the Funds’ investment objectives, risk factors, and charges and expenses before investing. This and other information can be found in the Funds’ prospectuses, and if available, the summary prospectuses which may be obtained by visiting www.iShares.com or www.blackrock.com. Read the prospectus carefully before investing.

Investing involves risk, including possible loss of principal. Asset allocation and diversification may not protect against market risk, loss of principal or volatility of returns.

Bonds and bond funds will decrease in value as interest rates rise and are subject to credit risk, which refers to the possibility that the debt issuers may not be able to make principal and interest payments or may have their debt downgraded by ratings agencies. An investment in the Funds is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Important Notes


The information provided is not intended to be a complete analysis of every material fact respecting any strategy and has been presented for educational purposes only.

Asset allocation models and diversification do not promise any level of performance, guarantee against loss of principal or protect against volatility of returns.

Shares of iShares Funds are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. There can be no assurance that an active trading market for shares of an ETF will develop or be maintained.

Mutual funds and iShares Funds are obliged to distribute portfolio gains to shareholders by year-end. These gains may be generated due to index rebalancing or to meet diversification requirements. Trading shares of the iShares Funds will also generate tax consequences and transaction expenses. Certain traditional mutual funds can be tax efficient as well.

When comparing stocks or bonds and iShares Funds, it should be remembered that management fees associated with fund investments, like iShares Funds, are not borne by investors in individual stocks or bonds. The annual management fees of iShares Funds may be substantially less than those of most mutual funds. Buying and selling shares of iShares Funds will result in brokerage commissions, but the savings from lower annual fees can help offset these costs.

Index returns are for illustrative purposes only and do not represent actual iShares Fund performance. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

BlackRock does not provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

Important Notes


Important Notes

The iShares Funds and BlackRock Mutual Funds are distributed by BlackRock Investments, LLC (together with its affiliates, “BlackRock”).

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Cohen & Steers Capital Management, Inc., European Public Real Estate Association (“EPRA®”), FTSE International Limited (“FTSE”), JPMorgan Chase & Co., MSCI Inc., Markit Indices Limited, Morningstar, Inc., The NASDAQ OMX Group, Inc., National Association of Real Estate Investment Trusts (“NAREIT”), New York Stock Exchange, Inc., Russell Investment Group or S&P Dow Jones Indices LLC, nor are they sponsored, endorsed or issued by Barclays Capital Inc. None of these companies make any representation regarding the advisability of investing in the Funds. BlackRock is not affiliated with the companies listed above.

Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50/Residential/ Retail/Mortgage or Industrial/Office Index; all rights vest in NAREIT. Neither FTSE nor NAREIT makes any warranty regarding the FTSE EPRA/NAREIT Developed Real Estate ex-US/North America/Europe/Asia Index; all rights vest in FTSE, NAREIT and EPRA. All rights in the FTSE Developed Small Cap ex-North America Index vest in FTSE. “FTSE®” is a trademark jointly owned by the London Stock Exchange Plc and The Financial Times Limited and is used by FTSE under license.

©2013 BlackRock. All rights reserved. ISHARES and BLACKROCK are registered trademarks of BlackRock. All other marks are the property of their respective owners. iS-9439-0313

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BlackRock Model Portfolios FA Presentation The information shown does not constitute investment advice, does not consider the investment objectives, risk.

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