1. Enhanced Diversification to Help Improve Your Portfolio
Strategic Risk Allocation Fund
July 2015
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

2. A Multi-Asset, Diversified Risk Factor Strategy
BlackRock Strategic Risk Allocation Fund:
Seeks consistent long-term returns with protection during market downturns and reduced correlation to traditional investments
1) Growth
Seeks consistent returns throughout a market cycle
2) Lower Volatility
Seeks less volatility than global equities and protection during drawdowns
3) Portfolio Diversification
Seeks lower correlation to equities (0.57) than a traditional 60/40 portfolio (0.99)*
*Source: Morningstar as of 12/31/14. Past correlations are no guarantee of future correlations. Stocks represented by the S&P 500 Index and bonds are represented by the Barclays US Aggregate Bond Index. Based on daily returns from fund inception (12/28/12) to latest quarter end. Example for illustrative purposes only.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

3. Problem #1: Diversification Across Asset Classes Has Limited Benefit
A traditional 60/40 “balanced” portfolio has exhibited limited diversification benefit due to high correlations
Without adequate risk diversification, portfolios aren’t prepared to provide consistency and weather down markets
The Diversification Reality of a Traditional Balanced Portfolio
Asset Allocation
Risk Allocation
Correlation
Bond Volatility
10%
+0.93
Correlation of 60/40 portfolio to S&P 500 Index
Asset Allocation
Drives
Risk Allocation
Risk Drives
Correlations
Stock Volatility
90%
Source: BlackRock. As of 12/31/14. Example for illustrative purposes only. Past correlations are no guarantee of future correlations.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 3

4. Market Capitalization Geography
Problem #2: Diversification Within Asset Classes Delivers Even Less Benefit
Correlations have continued to rise over the past decade
Diversification benefits are further reduced during periods of market stress, when investors need it the most
Equity Correlations Tend to Spike During Difficult Markets
Market Capitalization
Geography
Correlation with S&P 500
Last 5 Years
Credit Crisis
US Large-Cap
1.00
MSCI EAFE
0.88
0.93
US Mid-Cap
0.97
MSCI EM
0.80
0.87
US Small-Cap
0.94
0.96
When we think about diversification, we need to look at correlations among different asset classes
Traditionally, we would diversify not just between equity and fixed income, but also across capitalizations and geographies
But correlations have been increasing over time, which creates a challenge to improving diversification under Modern Portfolio Theory principles
Correlations have increased measurably over the previous two decades as compared the two decades of the 1980’s and 1990’s
In times market stress, when you need diversification the most, correlations among traditional asset classes have shown to increase even more
Source: Morningstar, as of 12/31/14, based on monthly returns. Past correlations are no guarantee of future correlations. US Small Cap represented by the Morningstar US Small Cap Blend category average. International represented by the Morningstar Foreign Large Blend Category Average. Emerging Market Equity represented by the Morningstar Diversified Emerging Markets category average. Credit Crisis defined as
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

5. … Because Asset Classes Are In Reality, A Composite of Risk Factors
Fundamental risk factors drive asset class returns
A risk factor approach provides a different understanding of asset class returns
Risk Factor Decomposition of Selected Asset Classes
Higher Expected Return
Inflation-protected bonds
Nominal bonds
Corporate bonds
Emerging
Bonds
Equities
Interest Rate Premium
Inflation
Premium
Risk Free Rate
Cash
Equity
Credit Premium
Credit
Emerging Premium
Economic
Growth
Lower Expected Return
For illustrative purposes only
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

6. Risk Factor Investing Offers Enhanced Diversification
Correlations between asset classes are typically high and increase during periods of volatility
Conversely, risk factors exhibit lower correlations, making them potentially more effective in enhancing diversification
Lower Correlation for Enhanced Diversification
Correlations among risk factors
Economic
Credit
Real Rates
Inflation
Emerging Markets
Liquidity 1
0.62
0.14
-0.09
-0.41
-0.35
-0.16
0.59
0.57
0.11
-0.32
0.50
0.44
-0.33
Source: BlackRock. Correlations measured over the period 8/88 to 12/14. Past correlations are no guarantee of future correlations. Factor returns are annualized returns to investable portfolios (in excess of one-month T-Bills) that mimic the fundamental risk factors, adjusted to ex-ante annualized risk level of 10%. Diversification does not ensure profit or protect against a loss. Correlation is A statistical measure of how two securities move in relation to each other. A perfect correlation of +1 implies movement in lockstep, -1 implies movement in the opposite direction, while a correlation of 0 implies completely random movement. Correlations near zero (from +0.6 to -0.6) enhance diversification.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

7. BlackRock Strategic Risk Allocation Fund – Performance Attribution
Strategic Risk Allocation Fund 2014 – Q Monthly Performance
Table comes from “Attribution” tab – column BV, row 4
Factor
Economic
Credit
Emerging Markets
Liquidity
Real Rates
Inflation
Factor Portfolio
Developed equities, commodities, and property
Corporate bonds versus government bonds
Emerging markets versus developed markets
Small cap equity versus large cap equity
Globally diversified inflation-linked government bond portfolio
Nominal bonds versus inflation-linked bonds
Source: BlackRock. Institutional shares performance as of 6/30/15
Data 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. All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 7

8. Economic Risk Dominates An Institutional Portfolio
A traditionally-balanced, institutional portfolio is heavily dependent on economic risk
Investing across a more diverse & balanced set of risk factors may help lower volatility through diverse markets
Most Diversified Portfolios Aren’t Diversified From a Risk Allocation Standpoint
Typical Investor 60/40 Portfolio =
VS.
Economic
Credit
Real Rates
Inflation
Emerging Markets
Liquidity
Source: BlackRock. As of 6/30/15. Typical Investor Portfolio consists of 46% S&P 500, 8% MSCI World ex. US, 4% Russell 2000, 2% MSCI EM, 13% Barclays Intermediate Government Bond, 9% Barclays US Aggregate Bond, 9% Barclays MBS, 2% Barclays High Yield Bond, 2% Citigroup WGBI Index and 5% cash.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 8

9. BlackRock Strategic Risk Allocation Fund – Portfolio Breakdown
Risk Factor Exposure Capital Allocation
Real Assets 26%
Sovereign Nominal Debt 37%
Equities
12%
Credit　　
26%
Instrument
Capital allocation
Risk contribution
Developed Sovereign Debt
Futures
31.37%
13.07%
Emerging Sovereign Debt
Total return swaps / CDS
5.23%
8.10%
Investment Grade Credit
Credit default swaps
20.09%
4.81%
High Yield Credit
5.57%
6.03%
Developed Equity
3.24%
7.56%
Developed Small Cap Equity
Total return swaps
4.18%
12.65%
Emerging Equity
Total return swaps / Futures
3.64%
14.28%
Volatility
0.46%
8.63%
Inflation Linked Debt
Bonds
19.34%
9.75%
Property
2.24%
7.51%
Commodities Ex Energy
3.10%
4.63%
Energy
1.55%
2.98%
Total
100%
100.00%
Leverage (for the 10% volatility strategy)
2.45x
n/a
As of 6/30/ Allocation to asset classes is subject to changes through time and is left at BlackRock’s discretion. Asset classes may be added or removed over time.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

10. Tactical Lever #1 – Tilts Across Factor Exposures
When factors are extremely over- or under-valued: Increase or decrease an individual factor exposure
Macro-economic & risk factor valuation data help identify bubbles or buying opportunities
Risk Factor Valuations
Number of standard deviations away from the long-term average risk factor as of 6/30/15
Lever #1:
Factor-Level Tilts
Example: Real Rates
Currently underweight Real Rates exposure vs. our long-term strategic allocation
Real Rates
Red = factor is expensive Blue = factor is fairly valued Green = factor is cheap
Source: BlackRock as of 6/30/2015
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11. Tactical Lever #3 - Reduce Overall Volatility
When diversification fails: Reduce risk pro-rata across the whole portfolio to limit drawdown
A proprietary risk tolerance indicator help guide risk exposures
Reduce Overall Volatility In The Portfolio
CASH
Lever #3:
Reduce Overall Volatility
Example: De-Risk
Non-market / cash exposure
For illustrative purposes only
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 11

12. So What Do I Do With My Money?®
Blending a Risk Factor Strategy into a Traditional Portfolio Increased Risk-Adjusted Returns
Investors are using this strategy for:
Equity Substitute
Seek to reduce risk without sacrificing long-term returns
Add diversification to an existing portfolio
Designed to lessen the blow from extreme drawdowns
Liquid Alternative
Differentiated source & pattern of risk-adjusted returns
Returns driven by beta, not alpha
Return & risk 12/31/89 – 12/31/14
Traditional 60/40 Portfolio
Return = 8.52%
Volatility = 8.82%
Multi Asset Income can be a solution for investors who are starved for yield, who may have too high an allocation to cash or lower yielding fixed income asset classes. The fund is a one-stop income solution, providing exposure to a wide range of asset classes around the globe to generate attractive risk-adjusted income and returns.
As an example, you can see on this slide Multi-Asset Income Fund was 50% of a portfolio, over the course of a year, return would have been substantially improved and risk would have also been reduced.
Replacing 20% of Equities with Hypothetical Risk Factor Strategy
Hypothetical Risk Parity Portfolio 50%
Return = 8.84%
Volatility = 7.64%
Tickers A: BSTAX C: BSTCX I: BSTIX
Source: BlackRock as of 12/31/14. The hypotheticals are provided for illustrative purposes only as the results are not based on a single actual investment. Performance data quoted represents past performance and does not guarantee future results. US Federal Reserve, Ibbotson, Datastream, Bloomberg, Standard & Poor’s, Goldman Sachs, National Bureau of Economic Research. The hypothetical strategy is a 22%/62%/16% allocation of the S&P 500, Ibbotson Intermediate-Term Treasury Index and the GSCI Commodity Index with notional exposure of 1.8x capital invested. The strategy targets a risk level of 10% and equal risk allocation among all three components, assuming zero correlations at volatilities of 15%/5%/20%. Thirty percent of capital is invested in T-bills to meet margin calls. Notional exposure is greater than capital invested. We assume a 50-bps spread over T-bills for derivatives financing. Index performance is for illustrative purposes only. You cannot invest directly in an index. Performance returns for strategies do not reflect any management fees, transaction costs or non-financial expenses.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

13. Large Institutions Outsource This To Firms Like BlackRock
Risk factor strategies are increasingly gaining the attention and assets of institutional investors
BLK’s Market Advantage Team has run risk-factor strategies for over 5-years with over $9B in AUM. See prospectus
Firms Offering Risk Factor Approach
Client Types / Examples
Texas Teachers Retirement System
Adopted a new 5% strategic allocation of their $130B portfolio to risk-parity strategies
Pensions & Investments 9/14
Bridgewater - $81B
AQR - $31B
Invesco - $10B
BlackRock - $9B
It takes advanced research, technology, infrastructure & expertise to identify & access discrete risk factor exposures & blend them in an optimal portfolio
Source: Envestnet, as of 9/30/14
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

14. BlackRock Strategic Risk Allocation Fund - Performance
Average annual total returns (%)
(as of 6/30/15)
2Q151
YTD
1-year
Since inception (12/27/12)
BLK Strategic Risk Allocation Fund (Institutional)
-3.60%
0.51%
1.13%
2.88%
Morningstar World Allocation Category Average
-0.68
1.21
-2.34 -
Blended Benchmark2
-1.10
2.44
5.72
Here you can see the Fund’s history of performance.
Performance data quoted represents past performance and does not guarantee future results. The investment return and principal value of an investment will 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 the performance data quoted. Refer to website at to obtain performance data current to the most recent month-end. Returns include reinvestment of dividends and capital gains. Morningstar category returns are based on total return and do not reflect sales charges. Total/net expenses including investment related/net excluding investment related expenses as stated in this fund’s most recent prospectus are 1.66%/1.10%/1.00% for Institutional shares as of the fund's most recent prospectus. Investment dividend expense, interest expense, acquired fund fees and expenses and certain other fund expenses are included in the Net, Including Investment Related Expenses and excluded from the Net, Excluding Investment Related Expenses. Institutional share class has a contractual waiver with an end date of 12/1/15 terminable upon 90 days’ notice.
1 Performance is cumulative, not annualized. 2. The Blended Benchmark represents 60% MSCI World Index/40% Barclays U.S. Aggregate Bond Index.

15. Important Notes
Please ask your clients to consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the fund and are available, along with information on other BlackRock funds, by calling or at The prospectus and, if available, the summary prospectus should be read carefully before investing.
Important Risks: The fund is actively managed and its characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves special risks including, but not limited to currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Fixed income risks include interest-rate and credit risk. Typically, when interest rates 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 payments. 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. Asset allocation strategies do not assure profit and do not protect against loss. Short-selling entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short-sale proceeds in other investments. Investing in commodity-linked derivatives and commodity-related companies may increase volatility. Non-diversification of investments means that more assets are potentially invested in fewer securities than if investments were diversified, so risk is increased because each investment has a greater effect on performance. 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.
1 Institutional shares are sold to a limited group of investors, including certain retirement plans. Institutional shares also are sold to certain investment programs. See prospectus for details. Since inception performance less than one year not annualized. 2 The Blended Benchmark is 60% MSCI World Index and 40% Barclays US Aggregate Bond. The unmanaged, market- capitalization weighted Morgan Stanley Capital International (MSCI) World Index consists of a representative sampling of stocks of large-, medium- and small-capitalization companies in 23 countries, including the United States. The unmanaged, market-weighted Barclays US Aggregate Bond Index comprises investment-grade corporate bonds (rated BBB or better), Mortgages and US Treasury and government agency issues with at least 1 year to maturity.
Prepared by BlackRock Investments, LLC, member FINRA.
FOR MORE INFORMATION:
©2015 So What Do I Do With My Money?® BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
USR-6921
You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the fund and are available, along with information on other BlackRock funds, by calling or at The prospectus and, if available, the summary prospectus should be read carefully before investing.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

16. Drawing From Specialized Knowledge & Market Insights Across BLK
Multi-Asset Strategies
Chief Risk Officer
Ked Hogan, PhD
Managing Director (30)
Team Head
Philip Hodges, PhD
Managing Director (8)
Head of Research
Vincent de Martel, CFA
Managing Director (16)
Head of Investment Strategy
Ben Golub, PhD
BlackRock
Chief Risk Officer (30)
Investment Strategy
Portfolio Management
Research
RQA — Risk and Quantitative Analysis
Kristin Fergis
Associate (3)
Shinda Bickham
Director (15)
Garth Flannery
Director (16)
Ron Ratcliffe, PhD
Director (25)
Robert Holmes, CQF
Vice President (6)
Stefan Sluke
Vice President (5)
Nicky Lai
Associate (5)
+ 2 TBAs
Kris Keltner
Associate (7)
Ted Daverman
Vice President (8)
Paolo Miranda
Associate (3)
Jack Davies
Associate (4)
Justin Peterson
Associate (4)
BlackRock Global Investment Platform
Multi-asset
Research
Global
Investment Teams
Risk & Quantitative
Analysis
BlackRock
Solutions
BlackRock
Investment Institute
+150 investors dedicated to multi-asset investing
+1,600 investment professionals with specialties across all asset classes
+500 professionals partner with investment teams to monitor and analyze risk
Proprietary Aladdin® platform integrates portfolio management, risk analytics, trading and operations
Internal forum facilitates idea sharing and debates insights
() reflects years investment experience. Team is based in San Francisco and London
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 16

17. Traditional Portfolios Appear Diversified
Diversification seeks to provide consistency through diverse markets
A traditionally 60/40 institutional portfolio appears diversified from a capital allocation standpoint
Capital Allocation of a Traditional 60/40 Institutional Portfolio 5%
Cash
35%
Bonds
60%
Stocks
Source: BlackRock.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 17

18. Research-Driven Investment Process
Strategic Allocation
Tactical Overlay
Risk factor tilts (under / over weights)
Optimal combination of fundamental risk factors
Identify fundamental risk factors
Implementation of risk factors
Extreme risk
Management to lower overall volatility
There are many asset classes that are exposed to the economic cycle, not just equities: commodities, property, etc. In order to balance truly the investment portfolio, the investment process needs to go deeper than the asset class level, all the way down to fundamental risk factors.
We make hypotheses and test them using past data and economics (scientific)
We create a repeatable process (team-based)
We rebalance monthly (discipline)
14 different asset classes
24 DMs & 21 EMs
Economic
Credit
Emerging Markets
Liquidity
Real Rates
Inflation
Inflation Linked Debt
Developed Equity
Infrastructure
Developed Sovereign Debt
Developed Small-Cap Equity
Property
Investment Grade Debt
Emerging Equity
Commodities Ex-Energy
Emerging Sovereign Debt
Volatility Strategies
Energy
High Yield Credit
Private Equity
Cash
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

19. Risk Factors Drive Investment Returns…
The returns of every asset class are driven by a combination of multiple sources of risk
Diversifying the sources of risk is key to more effective portfolio construction
Risk Exposures
What Drives Risk
Economic
Economic growth
Example: US GDP unexpectedly rises
Credit
Lending money to corporations
Example: High yield default rates remain low
Real Rates
Lending money for a period of time
Example: Fed lowers interest rates
Inflation
Bearing inflation exposure
Example: Supply shock causes expected inflation to rise
Emerging Markets
Investing in EM equities, bonds & currencies
Example: Modi implements reforms in India
Liquidity
Financial market & asset class liquidity
Example: Small-caps trade at a premium to large-caps
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public. 19

20. Solution: Diversify Risk Factors for Better Risk-Adjusted Returns
GA_2
Solution: Diversify Risk Factors for Better Risk-Adjusted Returns
Add a different approach to asset allocation that breaks down investments by their sources of return
This approach can complement a traditional portfolio to enhance overall diversification
Hypothetical Risk Factor Strategy Combined With a Traditional 60/40 Portfolio
Risk and Returns over 25 years (12/31/89 to 12/31/14)
Sourcing 20% from stocks Hypothetical
Diversified Risk
Factor Strategy
Performance data quoted represents past performance and does not guarantee future results.
As of December 31, Sources: BlackRock, US Federal Reserve, Ibbotson, Datastream, Bloomberg, Standard & Poor’s, Goldman Sachs, National Bureau of Economic Research. The hypothetical strategy is a 22%/62%/16% allocation of the S&P 500, Ibbotson Intermediate-Term Treasury Index and the GSCI Commodity Index with notional exposure of 1.8x capital invested, respectively. The strategy targets a risk level of 10% and equal risk allocation among all three components, assuming zero correlations at volatilities of 15%/5%/20%. Thirty percent of capital is invested in T-bills to meet margin calls. Notional exposure is greater than capital invested. We assume a 50-bps spread over T-bills for derivatives financing. Index performance is for illustrative purposes only. You cannot invest directly in an index. Performance returns for strategies do not reflect any management fees, transaction costs or non- financial expenses.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

21. Diversifying Risk Factors To Enhance Performance
We define an optimal portfolio as the one with the highest expected Sharpe Ratio
A truly diversified portfolio with modest leverage is more efficient
Concentration Risk vs. Leverage Risk
Diversified Beta Frontier
Risk Free Cash
Expected Return
Risk (standard deviation)
Some Leverage
Better risk/return trade-off targeted for equity return
No Leverage
Best risk/return
trade-off portfolio
Capital Market Line
Equity portfolio
Unnecessary risk
Source Blackrock. Chart is for illustrative purposes only. Pie charts indicate portfolio risk exposures and are for illustrative purposed only.
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.

22. Tactical Lever #2 – Tilts Within Factor Exposures
When implementation methods are over/under priced: Tilt factor exposures to assets, geographies & vehicles that offer better valuations
Risk factor exposures utilize 14 different asset classes in 24 DMs & 21 EMs
Real Rates Tactical Allocation Change by Geography
Underweight Japanese Government Bonds
Low yields; with a curve that is not any more attractive than other major markets
Large tail risk; skewed return distributions issued by a country that is committed to raising the inflation rate
Return exposure; when the yield offered is more in-line with the associated risks
Lever #2:
Tilts Within Each Factor
Example: Real Rates
We are currently underweight JGBs versus our long-term strategic allocations
Source: BlackRock as of 9/30/14
FOR FINANCIAL PROFESSIONAL USE ONLY. Not to be shown or distributed to the general public.