1 Source: Morningstar. As of 12/31/16. For illustrative purposes only. Illustration assumes an investment universe of Money Funds, Core Bonds and High Yield Bonds represented by the Morningstar Taxable Money Market Funds category, Barclays US Aggregate Bond Index and Barclays US High Yield 2% Issuer Capped Index, respectively. 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 3% Income Portfolio in 2006 consisted of a 68% allocation to Money Funds and the remainder allocation is not invested. In 2016 that allocation was 83% Core Bonds and 17% High Yield Bonds. The hypothetical 4% Income Portfolio in 2006 consisted of a 91% allocation to Money Funds and the remainder allocation is not invested. In 2016 that allocation was 63% Core Bonds and 37% High Yield Bonds. The hypothetical 5% Income Portfolio in 2006 consisted of a 75% allocation to Money Funds, 12% to Core Bonds and 13% to High Yields bonds. In 2016 that allocation was 43% Core Bonds and 57% High Yield Bonds.
2Source: Morningstar and Bloomberg, as of 12/31/16. 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 representedby 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 the referenced time periods. Core bonds represented by the Bloomberg Barclays US Aggregate Index, comprising more than 5,000 investment-grade taxable bonds. High yield represented by the Bloomberg Barclays HY 2% Issuer Capped Index, comprising issues that have at least $150 million par value outstanding, a maximum credit rating of Ba1 or BB+ (including defaulted issues) and at least 1 year to maturity. Each issuer is limited to 2% of the index. Bank loans represented by the S&P Leveraged Loan Index, designed to reflect the largest facilities in the leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based upon market weightings, spreads, and interest payments. Dividend Equities represented by the MSCI World High Dividend Yield Index, reflecting the performance of the high dividend yield of large-and mid-cap stocks in the US. Preferred stock represented by the S&P US Preferred Stock Index measures the performance of preferred stocks listed in US with a market capitalization over $100 million. EM debt represented by JPM EMBI Global Total Return Index tracking total returns for traded external debt instruments in the emerging markets including US dollar-denominated Brady bonds, loans, and Eurobonds with an outstanding face value of at least $500 million. US REITs represented by the FTSE NAREIT All Equity REITS Total Return Index, measuring the stock performance of companies engaged in the ownership and development of the real estate markets. MLPs represented by the Alerian MLP Index, a market-cap weighted, float-adjusted index composite of the 50 most prominent energy Master Limited Partnerships. (MLPs).
3 Source: BlackRock, Morningstar. As of 9/30/16. Assumes constant annual inflation rates. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index. Cash is represented by the Barclays U.S. 1-3 Month Treasury Index. Cash returns from inception of index, 11/30/1991. Inflation is represented by the Consumer Price Index. Index performance returns do not reflect any management fees, transaction costs or expenses.