BlackRock Total Return Fund

Balancing outperformance and diversification is a central challenge for today's bond investor.

Bond yields near record lows
Stretching for yield undermines diversification
Stocks near record highs
Portfolio diversification is more important than ever

Overcome the challenge

BlackRock Total Return Fund can help you overcome the challenge in two ways.

Diversify equity risk

With equity markets near all-time highs, many advisors want protection in case of a sell-off. BlackRock Total Return Fund has half the correlation to the S&P 500 versus its peers and has delivered better protection when stocks have fallen.

Correlation to S&P 500 Index

Chart:Correlation to S&P 500 Index

Source: Morningstar. Based on the cumulative period 12/31/2012 – 12/31/2017. Past performance is no guarantee of future results. Correlation of 0.11 represents the average correlation of the entire Morningstar Intermediate-Term Bond Fund category to the S&P 500 Index. Correlation of 0.19 represents the correlation of the first decile performing funds (as of 12/31/17) within the Morningstar Intermediate-Term Bond Fund category to the S&P 500 Index.

Returns during S&P 500 sell-offs

Chart: Returns during S&P 500 sell-offs

Source: Morningstar as of 12/31/2017. S&P 500 Sell-Offs is defined as calendar month period in which the S&P 500 fell by 2 or more percent. Based on 9 monthly periods from 12/31/10-12/31/17. 

For standardized performance, click here.

Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may 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 that shown. All returns assume reinvestment of all dividend and capital gain distributions. Refer to blackrock.com/tr for current month-end performance. Investment returns reflect total fund operating expenses, net of all fees, waivers, and/or expense reimbursement. Expenses stated as of the fund’s most recent prospectus: Institutional Shares Total/Net, Including Investment Related expenses are 0.74%/0.68% and have contractual waivers with an end date of 1/31/19 terminable upon 90 days’ notice.

Diversify across bond sectors

BlackRock Total Return Fund has delivered first decile performance over five years without taking excessive sector bets. Be aware of core bond funds that may take concentrated sector bets, such as in mortgages, which could add more risk to your portfolio.

MAHQX sources ideas across BlackRock's high-performing bond platform

MAHQX sources ideas across BlackRock's high-performing bond platform

Source: Morningstar. As of 12/31/17. 3

Diversified positioning for all bond market scenarios
Upside/downside capture ratio vs. benchmark

Diversified positioning for all bond market scenarios

Based on 5 year annualized returns as of 12/31/2017 vs the Bloomberg Barclays U.S. Aggregate Bond Index.

Outperformance with diversification

BlackRock Total Return Fund has outperformed the category average with better diversification.

BlackRock
Total Return Fund
(MAHQX)
Morningstar
Intermediate-Term Bond
Category Average
Higher return (5 year)      3.14% 2.05%
Higher 30-day SEC yield
(Subsidized/Unsubsidized)
     2.74% / 2.71% 2.31%
Higher Sharpe Ratio (5 year)      0.96 0.63
Better diversification
(correlation to equities)
     0.04 0.11

Source: Morningstar. Data is from 12/31/2012-12/31/2017. Yield is based on 30-day SEC yield (subsidized & unsubsidized for the fund; subsidized for the category as unsubsidized is unavailable) as of 12/31/2017. Correlation to equities based on the 5-year correlation (12/31/2012-12/31/2017). All data based on the Institutional shares of the Total Return Fund. Diversification cannot assure profit or protect against a loss. Past performance does not guarantee or indicate future results. For standardized performance, click here

Performance data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may 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 that shown. All returns assume reinvestment of all dividend and capital gain distributions. Refer to blackrock.com/tr for current month-end performance. Investment returns reflect total fund operating expenses, net of all fees, waivers, and/or expense reimbursement. Expenses stated as of the fund’s most recent prospectus: Institutional Shares Total/Net, Including Investment Related expenses are 0.74%/0.68% and have contractual waivers with an end date of 1/31/19 terminable upon 90 days’ notice.

Contact Us
For any questions related to the website specifically please call 877-275-1255 or email askblackrock@blackrock.com. For questions regarding BlackRock investments please reach out to your BlackRock representative.