EFTA00236350.pdf

BLACKROCK® STRATEGIC INCOME OPPORTUNITIES FUND Institutional: BSI IX • Investor A: BASIX • Investor C: BSICX Lipper Category Alternative Credit Focus Funds Fund Highlights • A Flexible, Core Bond Alternative: An all-in-one flexible bond portfolio that widens the investment opportunity set by blending traditional and non-traditional investment strategies. • Adapting to Changing Bond Markets: Built to adapt to diverse interest rate and credit conditions by investing across the entire bond market without sector, quality and geography limitations. • A History of Attractive Income & Returns: The Fund has offered a unique combination of attractive income, strong returns and downside protection through diverse market environments. %AVERAGE ANNUAL TOTAL RETURNS (0/30/14)' 111111fita sa Institutional Investor A Investor C With Sales Investor A Investor C tipper CategoryAvg. Morningstar Category A Barclays US Universal: BotA ML 3-Month T-BiW 5.46 5.19 5 Years 10 Years h 791 7.14 %CALENDAR YEAR RETURNS (FUND PERFORMANCE WITHOUT SALES CHARGES)' Institutional 26.23 13.39 -0.73 9.91 3.28 YID 3.35 2Q14 .I 1.65 Walnut A 24.76 13.10 -0.98 064 3.02 3.10 1.58 Investor C 23.86 12.27 -1.72 8.84 2.24 2.81 1.39 Lipper Category Avg. 2195 1124 1.46 6.91 0.95 2.68 1.23 Barclays USUniversal? 8.60 7.17 7.40 6.63 -1.35 4.19 2.20 MomIngsterCategoryttig. 1900 5.44 -1.29 7.60 0.29 2.38 1.14 BoM ML 3-MomhT-BilF 0.21 0.13 0.10 0.11 0.07 0.02 0.01 4.39 moan 4.57 Performance dote quoted represents post performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that on investor's shores, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. All returns assume reinvestment of all dividend and capitol gain distributions. Refer to vwvev.blockrociccom for current month-end performance. Index performance is shown for illustrative purposes only. You cannot invest directly in on index. The aure classes hen differed vies Ellaya an! otter features. Rooms uthsates charge tetett to deducton of meet mama inlet salts charge al f cr Ingmar A dares ad aeVcette comment (Ward saes chays1COSC Icr Inetear C shuts the martin COSC of Icr !newer C shares s reload Is i%aarr 1 yea. Nimmun total vittStIlInt lot Inaeutoret aura" c $2 mt1on. Irdetuarnat flies as) ae aattLe to cLena d roIrstrof irvistrart atheads Nn $ISCICIIIrmated Inthe knl. and added to patty:Wsin rap fee porays aid other SICrSat1 at:edemas a %anode memos. FACTS EETtv www.blackrock.com/sio Morningstar Category Nontraditional Bond Overall Morningstar Rating1 e: Institutional **** Riot aparst VD Ilentradilioral &M Funts, as of Wilk [seat on rah-gored lad atom. Ratngs ale Oteminel rely arif %egad la orange the %Mt ilannpa Rani fora Punt is dewed lama wiltile6 neap of 7e piitamece lyulei asaciauilotili la 3.. I, and I 011sr I I appOuttel Fixrugszer Rating metro.: Objective Seeks total return as is consistent with preservation of capital. Portfolio Management Rick Rieder Bob Miller PORTFOLIO STATISTICS Inception Date 2/6/08 Number of Hold 2,068 Size ot Fund 617.4 8 We ed A LIfe' 6.48 rs Effective Buffalo& 0.90 re Dividend F • use Moiled ANNUAL EXPENSES (% OF ASSETS) Inet 0.92 0.90 0.65 Inv. A 1.18 1.15 I 0.90 Inv. C 1.96 1.90 I 1.66 Expenses stotedos of the fund's most recent prospectus. Investment dividend expense. interest expense, acquired fund fees and expenses and certain other fund expenses ore included en the Net, Including Investment Related Expenses and excluded from the Net, Ex-Investment Related Expenses. Institu- tional. Investor A, Investor C hove contractual waivers with on end date of 5/7/15 terminable upon 90 doys' notice. CONFIDENTIAL UBSTERRAMAR00000651 EFTA00236350 LIPPER AND MORNINGSTAR RANKINGS (6,30114) Institutional Investor A 1 Year 3Year 5 Year 29 36 Out of 136 23 29 Out of 1% 12 14 Out of 41 Institutional 39 34 21 Investor A 51 39 23 1 Year 3 Year 5Year 10 Year 1 2 2 2 2 2 1 1 1 1 2 Out of 262 Outer 170 Out of 88 RISK MEASURES (3-YEAR)a Standard Deviation 2.83% 2.71% Beta ft-Squared Sharpe Ratio 0.40 1.00 14.49% 1.63 1.52 YIELD (56) Standardized 30-day SEC yield as of 6/30/14 liccec facie cry Alm:nava Clad rows beds. as of 4/30/I I all may not accurately keeskt te cumin ccrythiton it the thrtf the. shro dams of the laid are Imre; m a common mild*. Upon rirlungs are bast on total relict miming sales ewes Mttnrigsta Category. Institutional 2.30 2.30 E:9: 1)74:1;S w- tat: an via alum Excliidnj sales dirges. Intecentent4 calculated an: nit coattail to mate an okra Investor A 1.92 1.92 Investor C 1.26 1.24 SECTOR ALLOCATION WillaSa(% Notional Exposures) 4% Notional Exposuresk.i —.,, ......... —,...••• — ... Other v v 3.3 USAgency/MBS 16.3 Emerging16kt Debt 11.2 Bank Loans 1.3 Non-US Credit 10.2 ' Non-US Sovereign I I -6.2 Municipals 4.9 USTreasury/Other -12.0 Investmem Grade Credit 4.1 1 Cash' 382 • Cash impact SS I reasry Lae te CREDIT OUAUTY (% MARKET VALUE) Subsdeede2eafSECKeltacasedma3 ply period erring on the last dry of to Fiscus 11110th antis comp* by daidno fe eel trtrestned income per Mare eared dung te penal ty Ire manure offennj pro pu share rn te last thy of tv maid. If the lin, opensistek tows. de suttatdal yell a tined m to rid etwases Urthteldec 31.0a; SEC Tad *teal to total espouse( IR lira the lurid gall has not en rate ty an ih14:cmlent salmi Nosy. Credit iliac'/ mange on inilerlpngsecutiw ol the fund are reseed from SR?. Mcky's at Filch aril arsaltd tom comelier. S&P Nor titmo Worry. tits RealmIs plata q &atlas& ard Wes the medial tang of the trea areas shin all thee Nemo rate a setae), the Lir ol de hvo raw if only we aeons rate a scantyand ate tang e that is at Yet 5 proved Orated manta di nit necessonlyrnhcate loci anal. ease riestmertiale is roprasentel tit a [Ong of 88 ant tette Raysand penSim auk null may chance ORE mt. Aga invieightinp ray fall from soeold cacumstaxes lircludnj Inn? finances Caron vale aid settle dates td secludes purchased ty the lints' and the use el (Man boatel nithmints. Addle) Walrus. wadi mat te used to pan a Sae trinket elpisure angni nsk banagenenl. Cedan Males de bas may setae mai grot re to a Item at taw, IWO alter aldiatal masa opiate cr boxotang captit n marmot to increase Immanent rthrn. lease of such venactom ninths leseragerelaUd rats. Inkling mutual. for ban v aim greater thane et to funds nit amt tend Retaken et Shards al klatch= hill ty tit lad %%otiose( bawls twesetts a `ad's use of duratria inclohni tut rot anted to batons. atom ed seals. Ithsvalue warm re for ennthreSaS d the terra was reolaml oath to underlyng most and the ccoraionlo; Innong cr lording such del al upsues sum lo the net asset vita far ncalemativas. do alm het Yalu, ant the Rotund Market Yam am dentcal Important Risks: The fund is actively managed and its characteristics will vary. Bond values fluctuate in price so the value of your investment can go down depending on market conditions. Fixed income risks include interest-rote and credit risk. Typically, when interest rotes 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 pay- ments. Principal of mortgage- or asset-backed securities normally maybe prepaid of any time, reducing the yield and market value of those secu- rities. Obligations of US gov't agencies ore supported by varying degrees of credit but generally ore not backed by the full faith and credit of the US govt The fund 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. International investing involves special risks including but not limited to currency fluctua- tions, illiquidity and volatility. These risks may be heightened for investments in emerging markets. 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 higher-rated securities Short- selling entails special risks. If the fund makes short soles in securities that increase in value. the fund will lose value. My loss on short positions may or may not be offset by investing short-sole proceeds in other investments. You should consider the investment objectives, risks, charges and expenses of the fund carefully before Investing. The prospectus and, if (wadable, the summary prospectus contain this and other information about the fund and are available, along with information on other EllackRock funds. by calling 800-882-0052 or from your financial professional. The prospectus should be read carefully before Investing. ribrimed dans and (Imam ovestrrent :a:Tom:Set 2 : LS plain-Lela-4 Yet-giant-in& dal rem,norst-woh;tolt .rt cfl: 'Till t. , ,.kel Strati matuturs ri a i leas l pre ' 3 • :AIAMctrillp:h3.Mint 15 Irmsury Fill Intel tracks US heasurythatmes mawonge 90 des and slashes rerwestmtht al ' 4 Weighted AVM age liter The mine nim:e, of tint.. • - • r .nced woad on alama mingige oulstaVsng Duns ITIUSUM MS/0010f coblornahe Irwin:1EN SUE It a ".' Effectually/boo °tapas 'r, ..• ,Late as Interest rata Mange. SRI* stashei ate taw. mlnrests A monthly retort tot the Iva petod Ihmtneth iskomacresaii ZaLulale: [ntEson • US Ilarreria Et Standard Clenation -eiwei the rotates it the hinds retort alsit tenaon represents hOer viably. Sharp Ratio clew lints stantedd &yahoo ond its so:es neon tetwean te funds r• -tie ;: r,:r add/ lreasuy (iasI to &Imre read thy toil of mak. Data mastics the lois sins troly I? make MONMIFIS. beta pea thin 1 ,s sank:la* than the market tete less theftsless Vaallk thin the whet. R-Squind reffe:ts te pmetaie of a lunismornents that are nplarret tyrnocsuren* ruts bendrred ShOVAN the deists of opielibm bays the find and tsniti k. Ito Ague is WAIL in assearro ka Day it 5 tat teal * statistically sapient. f fur each fad nth a 3-yw henry a Muringsta Rotor rs atorinierl bawl on itsk.alluslerl returns that moult it mantra in a lints meanly reformats Iscislinp sales Mapes. bads ad udenpum hesl. axon nicre mixes in dectoraid *nacre aral mane cokatent perturrence. Elie top I0% of fields :teem 5 stars. the reel 72.5% nem 4 sin N next 35% recera 3 stns. S'e next 22 5% New ? stars aid tit bittern 1OR mart star. tEach shoe class is cooled a a !warm ol are lord irithn this Seih ant rata stswaleV. shim a • . vl N lanes) numbers ol US.domeral Noacad both( kind lot net the lamog time Knot: 170 in thetas) 3 pun ant 38 mild :conga Rang of l and d stars for IN). and Staa wags wesectively. Other Haan Iayhe,m different perfonate theractensta FOR MORE INFORMATION: www. blac krock.com 0101/8 • BLACKROCK Sa redacted traletterk of EllackRok. Int. es its sstestdanes in tie United States all elseWrere. kJ other ralerterle at three 0l their rtsptane wets. Pr erxm . r l I- E I' ;t!nents.t.l.C. member 1-ihrPa Not FDIC Insured • May Lose Value • No Bank Guarantee 17/14 - Soaks Mon* Cgoloauts ford/WI-We 11%-4234 BLACKROCK' CONFIDENTIAL UBSTERRAMAR00000652 EFTA00236351