1. BlackRock Model Portfolios
FA Presentation
Thank you for taking time out of your schedules today.
As you are all aware BlackRock has been built around the solutions investors need today, and over the years, millions of investors have entrusted their assets to us.
We’re the world’s largest asset manager with over $3 trillion in assets and the only asset manager to be ranked in the Top 10 for OEFs and ETFs. We use our proprietary risk management technology to monitor over $12 Trillion for the largest banks, insurance companies and sovereign nations – running stress tests weekly….
And now we have put the very best that BlackRock can offer from our leading investment solutions and proprietary risk management into a solution for you and your clients.
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.
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2. Trend Towards FA-Driven Advisory
Trend: “Rep-as-Portfolio Manager” and “Rep-as-Advisor” are the fastest growing advisory platforms 38% 2-year growth rate)
Implications: Important changes in FA buying behavior:
FA’s manage model portfolios
Increased use of ETFs alongside mutual funds
The trend towards FA-driven advisory platforms is changing the industry landscape. BlackRock wanted to understand this phenomenon to better partner with you, the advisor, so we talked and listened to hundreds of Financial Advisors across the country. We learned that this trend can benefit you and your client by making you the center of the value proposition, while allowing you to scale and annuitize your business. The client also benefits by always receiving your best thinking across their entire account.
We also heard that as you build your practice you implement tactical asset allocation, utilize ETFs and Mutual Funds together and want asset allocation guidance. This is where BlackRock can help.
Increased Tactical Asset Allocation
FAs seek asset allocation guidance
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3. Portfolio Implementation is Challenging
FAs need two things to succeed 1 2
Quality investment solutions
Scale business
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
Managing portfolios is not easy and successful FAs seem to have two common characteristics – they use quality investment solutions that can also help scale their business in a cost efficient manner.
BlackRock is uniquely positioned to partner with you to grow your business, while providing you with professional investing and extensive risk management. We have put the very best that BlackRock can offer from our leading investment solutions and proprietary risk management into a solution for you and your clients.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

4. The BlackRock Advantage
BlackRock is uniquely positioned to partner with you to grow your business Introducing BlackRock Model Portfolios
Asset allocation guidance
Combines iShares ETFs with select active mutual funds
Tactically updated
What are they?
Delivered through an exclusive FA-only web portal
Implemented by FA with no overlay fee*
Supported by our field based wholesalers
How do I use them?
Read Slide
ETFs + MFs
Risk management is our core competency
Wholesaler support – partner with you to scale business
Why BlackRock?
*Buying or selling shares of iShares Funds will result in brokerage commissions.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

5. Subscribe to Models for Tactical Updates
Step 1: Log In: To gain access to BlackRock Model Portfolios, visit iShares.com/model portfolios
Step 3: Follow the Updates
Step 2: Subscribe to the Model Portfolios That Interest You
Here’s how it works….
We have created a FA-only portal to access the model portfolios.
Simply go to www/ishares.com/model portfolios and click on “Subscribe to Updates” You will be asked to create a username and password to access the holding allocations and risk analytics. Once registered simply click “subscribe” to the models that most interest you. We will you on a quarterly basis to your (LPL/MSSB/WELLS/ML/UBS – ETC) inbox with the tactical update, recommended changes within the model and written rationale for every trade. You can then take this client-approved document and use it as your talking points with your clients – or give it to your clients to show you are following BlackRock models.
Sample screenshots are for illustrative purposes only
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

6. Model Portfolios – Income Solutions
Target 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% %
3.0% %
4.0% %
5.0% %
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% %
3.0% %
4.0% %
5.0% %
Transition: Now that you know how to access the models, let’s look at what solutions are available for you and your clients. In our conversations with FAs we heard that your clients are looking for income and yield which is difficult to do in the current environment and with the threat of rising rates looming. Also, we heard that you struggled to tactically rotate Fixed Income asset classes to achieve these yields in a thoughtful manner that was difficult to scale across your book of business.
We have created model portfolios that start with the client goal as the primary objective. We have created 3 suites of models that all achieve levels of income in different ways across fixed income and multi-asset.
Descriptions of each Model Series
Target Income – an all fixed income solution that aims to beat the barcap with more yield per unit of risk. We offer five models within this series each with a specific yield target ranging from 2% to 5%. Available in active/index or index only models.
Tax-Aware – an all fixed income solution that tactically manages taxable exposures with municipal for your clients who are in the 43.4% tax bracket. There are five models available with a tax equivalent yield objective after expenses ranging from 2% to 5%
Hedged Risk Income – a multi-asset class solution that aims to hedge out a specific risk you or your clients have while achieving a 4% yield objective. Available in active/index or index only models.
In your materials you have information on the specific models, holdings and allocations.
Hedged-Risk Income Models – Available Active/Index and Index Only
Volatility-Hedged Income
Rising Rates-Hedged Income
Inflation-Hedged Income
Current Yield Objective after Expenses*
4.0% %
*Please see important notes at the end of this presentation
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

7. Model Portfolios – Tactical & Strategic Solutions
Tactical Equity Model – Available Index Only
Tactical Equity
Strategic Models – Available Index Only
To complement our income model portfolios, we leveraged the best thinking of BlackRock around rotating across sectors and geographies to create tactical and strategic equity solutions for you to implement into broader portfolios.
Descriptions of each Model Series
Tactical Equity Model - Tactical equity-only model portfolio enables you to capitalize on timely global themes. This is tactically updated on a monthly basis and involves only index funds.
Strategic Models – A diversified model portfolios that can help anchor a comprehensive, long-term asset allocation strategy. Available in index only. These models have been created to use in coordination with the other models available such as our income solutions.
Conservative
Moderate Conservative
Moderate
Moderate Aggressive
Aggressive
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8. BlackRock Model Portfolio Solutions Team
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
Russ Koesterich, CFA
Russ is the Global Chief Investment Strategist for BlackRock and the co-head of the BlackRock Model Portfolios Solutions team
Daniel Morillo, PhD
Daniel is the Global Head of Investment Research and co-head of the Model Portfolio Solutions business.
BlackRock is taking this initiative very seriously and taking a strategic bet that FAs will follow our models and buy the underlying BlackRock Mutual Funds and iShares ETFs.
The team who create these models is based in our San Francisco office and is lead by our Global Market Strategist – Russ Koesterich and co-lead by, Dan Morillo, Global Head of Research for iShares.
The Model Portfolio Initiative is supported by 12+ investment professionals – including 7 PhDs and 3 CFA holders who are responsible for portfolio construction, asset allocation and the constant monitoring and rebalancing of the Model Portfolios. The team is solely focused on the maintenance and creation of model portfolios – this is their full-time job!
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9. Investment Process: Starts with a Portfolio Goal
Four-step Investment Process
Target Income Portfolio IV – Aggressive Income 1
ESTABLISH PORTFOLIO GOALS
5% % current yield objective after expenses* 2
DEFINE INVESTMENT UNIVERSE
Fixed income only
All iShares and BlackRock mutual fund across
Treasuries
Credit 3
MINIMIZE VOLATILITY
Attempt to minimize volatility by optimizing across 3 factors:
Yield of each ETF / MF
Volatility of each ETF / MF
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
Asset Backed Securities
Non-US Government
Let’s just walk through the investment process the team goes through to create just one of these Model Portfolios.
The Portfolio IV – Aggressive Income has a yield objective of 5%. The team starts with the yield objective and works around this goal to create a portfolio that can meet that objective with the least amount of risk.
The investment universe for the Target Income Series focuses only on Fixed Income – the team then analyzes the universe available with them. Using proprietary technology and our risk analytics the team analyzes correlations, volatility and yield across each of the underlying potential ETFs/Mutual Funds – going through this process allows the team to create a portfolio that will meet that goal with the least amount of volatility.
Of course yields, correlations and volatility change daily – the team constantly monitors the allocations and each quarter will update the allocations to optimize the portfolio to ensure we are meeting the portfolio goal with the least amount of risk. If there are inter-quarter market shocks the team is prepared to do special one-off reallocations and we will communicate these in real-time to you.
*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.
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10. Target Income Model Portfolio III – High Income
Target Income Portfolio III
Current yield objective = 4% +/- 0.25%
ETF
Mutual Fund
We listened to a lot of FA feedback and you told us to keep any models manageable and that’s exactly what we’ve done. Our models contain 7-10 tickers, are majority iShares ETFs with select Active Mutual Fund exposures. They are tactically managed with % turnover annually and easy to implement and manage because the portfolios reallocate quarterly, mid-quarter – that’s only four trades per year unless there’s a market shock that would necessitate an additional reallocation outside the normal schedule.
These models demonstrate the power of the iShares ETF franchise in the hands of skilled Portfolio Management team – these are passive instruments, but there is nothing passive about the select and deliberate exposures the team has allocated to within each model.
7 to 10 Tickers
Targeted exposures
Quarterly tactical updates
50% to 100% annual turnover
As of February 14, 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

11. Inflation-Hedged Income Model Portfolio
ETF
Mutual Fund
Inflation-Hedged Income
Current yield objective = 4% +/- 0.25%
Another example of the Model Portfolios and how they are designed to meet client concerns and goals. Our team designed an income model targeting a 4% +/- 0.25% with a hedge to combat inflation.
How do you hedge in long only positions?
iShares offers our PM team a roster of exposures that the team can utilize to find indexes with positive correlation to inflationary movements. They do this through exposures to infrastructure, energy and utilities however there is a trade-off for this exposure with increased volatility – however as you will see in the next few slides there is no free lunch – our models balance trade-offs between risk, yield and volatility.
Sector equities that hedge inflation risk…but the trade-off is higher volatility
As of February 14, 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

12. 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.
Portfolio IV Aggressive Income
Portfolio III High Income
Portfolio II Moderate Income
Portfolio I Core Income
And here is the final product. The Target Income Series aims to beat the BarCap Agg with more yield per unit of risk.
In this efficient frontier we plot the Model Portfolios against volatility and yield – it illustrates that our model portfolios beat the barcap agg per unit of risk. Of course for our more aggressive models, the risk increases – we will discuss shortly how you can analyze the trade-offs within each portfolio to meet the yield objectives.
Barclays US Aggregate Bond Index
As of February 14, 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION. 12

13. 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
Barclays US Aggregate
Bond Index
Concentrated risk exposure
>100% is Rate Risk
Portfolio I Core Income
Portfolio II Moderate Income
Portfolio III High 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%
0.06%
Risk Contribution**
Risk – the four letter word that is on the mind of every investor. With our models we are taking your discussions to risk to another level. On our FP website where you can see the holdings, and allocations for the models you can also access our institutional risk analytics “BlackRock Solutions” to understand the component risk you are taking within each model. This is the same technology we use to analyze sovereign wealth funds, pension funds and Fortune 500 companies.
*Assets as of December 31, 2012 **Please see important notes at the end of this presentation.
All figures as of February 14, 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.
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14. 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
High Yield Fixed Income
Portfolio II - Moderate Income Model
A case study in Active-Index investing
Most high yield bonds are illiquid
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
20%
The Portfolio Management team that manages these models has access to the full range of BlackRock mutual funds and ETFs – however they carefully construct these portfolios to make them as efficient as possible and provide the best exposure possible for you and your clients.
Our team uses active strategies where ETFs cannot gain exposure ensuring your clients have the best possible exposure to certain asset classes to take advantage of tactical asset allocation. ETFs also provide liquid exposures that can be efficiently changed in tactical reallocations.
Take for example High Yield – The High Yield Universe is over securities, however due to liquidity the Index only has access to ~600 securities – this presents an opportunity to use an active manager to gain exposure to the full High Yield universe while also leveraging the ETF as a liquid tactical allocation to dial up/down the position. This is exactly the strategy implemented in our Target Income Series where we have a 20% strategic allocation to BHYIX and a tactical allocation of up to 10% in HYG the ETF.
20%
BHYIX (MF)
BlackRock High Yield Bond Fund
20% strategic allocation
0-10%
HYG (ETF)
iShares iBoxx $ High Yield Corporate Bond Fund"
0 to 10% tactical allocation
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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

15. Subscribe to Models for Tactical Updates
Step 1: Log In: To gain access to BlackRock Model Portfolios, visit iShares.com/model portfolios
Step 3: Follow the Updates
Step 2: Subscribe to the Model Portfolios That Interest You
Finally, our service to you – offering you ongoing tactical asset allocation. All you need to do is register for our FP website and subscribe to the models that interest you and your clients. Every quarter, mid-quarter we will send you a detailed document outlining the changes, risk statistics, and trade rationale for each model within that family. This commentary is also client-approved so you can share with your clients so they too can understand the changes within the models.
The Portfolio Management team also does a call for FAs with every tactical rebalance to discuss the trades and answer your questions.
Of course, if there is major market shocks we will communicate promptly any changes we would take within the models – for instance we were prepared to do a special markets rebalance if we went over the fiscal cliff.
Sample screenshots are for illustrative purposes only
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16. Resources to Support Your Business
Weekly Investment Commentary from Russ Koesterich
Capabilities Brochure
We have a number of marketing materials to help you understand the Model Portfolios.
We also have a team of specialists who you help you further on detailed portfolio construction information.
Additionally, if you want to hear from the PM team on a weekly basis subscribe to Russ Koesterich weekly market commentary on our FP website.
Client-Approved Quarterly Tactical Update
Sample screenshots are for illustrative purposes only.
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17. Appendix

18. Risk Contribution Factors
PLEASE USE THESE SLIDES IF QUESTIONS COME UP REGARDING THE RISK ANALYTICS AND BETAS AROUND THE MODELS.
Here is a screenshot of the what you can expect to see around our models on the FP website.
On the website – you can see the breakdown for each model of the risk involved so you can have deep and meaningful conversations with your clients.
For instance in the example on the slide we break down the standard deviation (or volatility) of the BarCap Agg – as you can see it’s heavily concentrated in rate risk – our Target Income Models offer an alternative – a more diversified approach to beating the Agg though it involves incorporating significant credit risk.
As of February 14, 2013 Please see important notes at the end of this presentation.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION

19. Betas
Barclays Aggregate Bond Index*
Portfolio I Core Income
Portfolio II Moderate Income
Portfolio III High Income
Portfolio IV Aggressive 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
PLEASE USE THESE SLIDES IF QUESTIONS COME UP REGARDING THE RISK ANALYTICS AND BETAS AROUND THE MODELS.
On the website we also show the related Betas for each Model Portfolio. Instead of just focusing on the usual Beta to the S&P 500 we’ve expanded the range to incorporate other relevant betas for you and your clients.
As of February 14, 2013 Please see important notes at the end of this presentation.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION

20. Beta to 10-year Treasury Rate
Barclays Aggregate Bond Index
Portfolio I
Core Income
Portfolio II Moderate Income
Portfolio III High Income
Portfolio IV Aggressive
Income
PLEASE USE THESE SLIDES IF QUESTIONS COME UP REGARDING THE RISK ANALYTICS AND BETAS AROUND THE MODELS.
Here is a visual example of the 10-year Treasuries Beta for our Target Income Models.
You can see the Barclays Agg has a Beta of -2.5% to the 10 Year which means if there’s a 1% increase in the 10 year the Barclays Agg will decrease in value by 2.5%. Across our Models we have minimal negative Beta’s or even positive Beta’s to a 1% increase in the 10 year.
As of February 14, 2013 Please see important notes at the end of this presentation.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION

21. Beta to Investment Grade Credit Spreads
Barclays Aggregate Bond Index
Portfolio I
Core Income
Portfolio II Moderate Income
Portfolio III High Income
Portfolio IV Aggressive
Income
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
PLEASE USE THESE SLIDES IF QUESTIONS COME UP REGARDING THE RISK ANALYTICS AND BETAS AROUND THE MODELS.
However, as you know with investing there’s trade-offs. The Barclays Agg has almost an 0 Beta to Investment Grade Credit Spreads.
Our Models on the other hand have significant betas to Investment Grade Credit Spreads – at BlackRock risk management doesn’t mean avoiding risk it means understanding the risks you are taking and consciously making those trade-offs. Our PM team believes that credit spreads offer a better opportunity with less risk than exposure to rates (10 year treasury).
We hope by providing you these risk analytics for free you can have these conversations with your clients around the trade-offs they will have to make to meet their objectives.
As of February 14, 2013 Please see important notes at the end of this presentation.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION

22. FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.
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
10 Year
Since
Inception
NAV
Market Price
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%
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%
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
0.12%
0.49%
0.53%
1.60%
1.59%
2.56%
2.55%
2.66%
IEI
iShares Barclays 3-7 Year Treasury Bond Fund
0.64%
2.79%
4.39%
4.38%
5.95%
IEF
iShares Barclays 7-10 Year Treasury Bond Fund
1.52%
5.76%
5.74%
6.41%
6.39%
5.87%
5.86%
6.25%
TLT
iShares Barclays 20+ Year Treasury Bond Fund
2.90%
7.47%
7.74%
8.19%
8.10%
7.32%
7.29%
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
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 or 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

23. FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.
Standardized Performance of Underlying Holdings Tax-Aware Target Income Model Portfolios (3/31/13)
Ticker
Mutual Fund/ETF
Inception Date
30 Day SEC Yield
Tax Equivalent
30 Day SEC Yield
Expense Ratio
1 Year Returns
5 Year Returns
10 Year Returns
Since Inception
NAV
Market Price
Market 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%
0.67%
1.85%
2.08%
4.40%
MANLX
BlackRock National Municipal Fund
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%
3.52%
5.67%
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%
SUB
iShares S&P Short Term National AMT-Free Municipal Bond Fund
11/5/2008
0.23%
0.41%
0.95%
2.57%
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 or 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

24. FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.
Standardized Performance of Underlying Holdings Hedged-Risk 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
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%
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%
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%
3.16%
3.00%
0.70%
12.52%
12.47%
10.05%
IXP
iShares S&P Global Telecommunications Sector Index Fund
4.63%
11.58%
11.20%
2.43%
2.46%
9.56%
9.46%
4.61%
JXI
iShares S&P Global Utilities Sector Index Fund
9/12/2006
3.99%
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%
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%
12.41%
12.36%
5.15%
5.06%
7.29%
1.61%
PFF
iShares S&P U.S. Preferred Stock Index Fund
3/26/2007
5.62%
10.29%
10.22%
6.85%
6.47%
3.86%
3.87%
TLT
iShares Barclays 20+ Year Treasury Bond Fund
2.90%
7.47%
7.74%
8.19%
8.10%
7.32%
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%
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
0.57%
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%
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 or 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

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

26. FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.
Important Notes
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 or 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.
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.

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

28. Not FDIC Insured • No Bank Guarantee • May Lose Value
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
Not FDIC Insured • No Bank Guarantee • May Lose Value
FOR FINANCIAL PROFESSIONAL USE ONLY - NOT FOR PUBLIC DISTRIBUTION.