1Q 2022 | Commentary

Multi-Asset Income MF/ETF Model Portfolios

We see a relatively healthy macroeconomic climate in 2022, however, we do anticipate a year of heightened volatility alongside potentially more muted returns. Ongoing virus uncertainty, elevated valuations and tightening central banks all point to a bumpier path ahead. And while we expect earnings growth to drive further stock market gains, we think investors should be wary of the most richly valued parts of markets. In January, we rotated away from parts of the market that have exhibited the greatest correlation with rates

(e.g., equities with more exposure to the growth factor) as well as utilities. We increased high dividend stocks, where forward price/earnings expectations are lower and therefore present a lower bar to beat. Within bonds, we believe lower quality credit should continue to outperform interest rate sensitive assets. We sold a short duration high yield strategy in favor of bank loans, which may provide more stability given the asset class’s relatively lower volatility profile.

The portfolios seek to provide generous yields with lower volatility than their risk benchmarks

3.13% Yield

Hig

h

High

Low

Low

3.45% Volatility

Conservative

1.61% Yield3.84% Volatility

30/70 Riskbenchmark

1.71% Yield5.40% Volatility

50/50 Riskbenchmark

1.70% Yield7.18% Volatility

70/30 Riskbenchmark

3.48% Yield5.05% Volatility

Moderate

3.18% Yield7.35% Volatility

Growth

Risk

Yiel

d

Source: BlackRock, as of 12/31/21. For illustrative purposes only. Past performance is no guarantee of future results. Volatility is based on 1-year standard deviation using monthly returns. The 12-month trailing yield for the model portfolios assumes that the constituents were held in the weights as of the most recent quarter end and does not reflect changes made in response to market conditions. Benchmark yields represented by yield-to-worst for fixed income and by 12-month dividend yield for equity. Components of the risk benchmarks are as follows: 30% MSCI World Index & 70% Bloomberg U.S. Aggregate Bond Index for Conservative MF/ETF, 50% MSCI World Index & 50% Bloomberg U.S. Aggregate Bond Index for Moderate MF/ETF, and 70% MSCI World Index & 30% Bloomberg U.S. Aggregate Bond Index for Growth MF/ETF. It is not possible to invest directly in an index.

This information is not personalized investment advice or an investment recommendation by BlackRock, and is intended for use only by a third party investment advisory firm in connection with its management of its own clients. BlackRock does not have investment discretion over, or place trade orders for, any portfolio or account derived from this information. Performance of any portfolio or account derived from this information may vary materially from the performance shown herein. There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results. Please review the disclosures at the end of this document and consult your financial advisor for more information.

The Multi-Asset Income MF/ETF Models are comprised of three multi-asset model portfolios that each seek to provide yield at varying risk levels. The models are intended as tools to help investors, together with their advisors take a fresh approach to income generation across asset classes while managing for broad risks. Whether investors are saving for their future or are nearing retirement, their advisors will work with them to select the portfolio that best reflects their financial needs.

This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) any 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.

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Compelling income and downside mitigation is hard to findNow more than ever, sourcing income and managing risk across a variety of asset classes requires specialized expertise.

MLPsPreferredstock

Bankloans

EMdebt

U.S.REITs

Highyield

Dividendequities

Inv. gradebonds

Corebonds

U.S.equities

Treasurybonds

Non-traditional sources of incomeTraditional sources of income

Ave

rage

yiel

d (%

)A

vera

ge a

nn

ual

draw

dow

n (%

)

1.85

-4.32

-13.50

-3.30

2.96

-5.91

-12.48

-6.26

3.77

-14.84

5.53

-7.22

5.66

-5.18-9.66

6.149.41

-30.40

2.26 3.89 5.701.81

Source: Morningstar and Bloomberg as of 12/31/21. For illustrative purposes only. Yields represent 5-year average monthly yield. Fixed income yields represented by yield-to-worst, equity yields by 12-month dividend yield, while MLP yield consists primarily of return of capital, which reduces the investor’s 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. Average annual drawdown is the average of the largest declines in value from peak to trough during 12/31/2016-12/31/2021. Asset classes represented by indices indicated on page 6. MLP yield consists primarily of return of capital, which reduces the investor’s adjusted cost basis. Data represents past performance and does not guarantee future results.

Consistent monthly yieldThe Multi-Asset Income MF/ETF Managed Portfolio Strategies aim to provide consistent and compelling levels of monthly income. Since inception, the Moderate Portfolio has generated an average yield of 4.44%.

0

2

4

6%

Feb-17 Feb-18 Feb-19 Feb-20 Feb-21

Global equities avg = 2.25%

Core bonds avg = 2.26%

Moderate Portfolio avg = 4.39%

Dec-21

As of 12/31/21. The 12-month trailing yield for the model portfolio assumes that the constituents were held in the weights as of the most recent quarter end and does not reflect changes made in response to market conditions. Core bonds represented by the Bloomberg U.S. Aggregate Bond Index yield-to-worst. Global equities represented by the MSCI World Index 12-month dividend yield. It is not possible to invest directly in an index.

Lower volatility than their risk benchmarksThe Multi-Asset Income MF/ETF Moderate Managed Portfolio Strategy (the “Moderate Portfolio”), for instance, has maintained lower risk than a portfolio comprised of 50% stocks and 50% bonds.*

50% stock/50% bond portfolio avg volatility = 7.56Moderate Portfolio avg volatility = 5.87

00

15

30%

Feb-20 Feb-21Feb-19Feb-18Feb-17 Dec-21

* 50% stock/50% bond portfolio represented by 50% MSCI World Index/50% Bloomberg U.S. Aggregate Bond Index. It is not possible to invest directly in an index. Volatility based on Aladdin ex-ante risk, an estimate of a portfolios’ annualized standard deviation based on its exposure to 2,200 risk factors in BlackRock’s proprietary risk model. Risk factors are objective, measurable characteristics of a security that historically have had explanatory power of volatility. Exposures to these risk factors are aggregated, with correlations taken into account, to arrive at an estimate of total standard deviation at the portfolio level. Standard deviation measures the volatility of returns. Higher deviation represents higher volatility.

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A flexible and dynamic investment processUnlike strategies that are beholden to a strategic benchmark, the Multi-Asset Income MF/ETF Managed Portfolio Strategies have the flexibility to invest in a broad universe of asset classes and adjust allocations as markets change.

0

20

40

60

80

100%

Multi-asset income

Government bondsEM debt

Non-traditional fixed income

Preferred stock

Floating rate loans

Investment grade

High yield

REITs

MLPs

Emerging market equities

Global developed equities

US Equities

Cash

Feb-17 Feb-18 Feb-19 Feb-20 Feb-21 Dec-21

A Boosted equity regional diversification by adding emerging markets

B Reduced risk amid economic shutdown due to Coronavirus pandemic

C Highest historical equity exposure based upon strong growth outlook

A

B

C

Source: BlackRock. Investing involves risk. For illustrative purposes only and subject to change. The portfolio holdings and characteristics of the Multi-Asset Income MF/ETF Moderate Portfolio reflects the current strategy for the fully discretionary, unconstrained account and is not the result of actual trading. Actual portfolios may differ as a result of the account size, client-imposed investment restrictions, the timing of client investments and market, economic and individual company considerations.

Your portfolio management teamJustin Christofel Michael Fredericks Alex Shingler

The BlackRock Multi-Asset Strategies Income team is responsible for portfolio management, risk monitoring and tactical investment ideas for $37 billion* of global income strategy assets.

* As of 12/31/21.

MKTGM0222U/S-2041873-3/8

Positioning insights

Asset class Our view

Dividend equities In January, we added to high dividend equities, both US and developed international, to tap into still relatively attractive valuations and return potential amidst a broader backdrop of above-trend economic growth. We simultaneously reduced more expensive and lower yielding equities, which may be more sensitive to rising interest rates and may offer less upside after having repriced meaningfully higher last year, particularly if earnings results disappoint compared to lofty investor expectations. We trimmed utility stocks, which had a strong run against U.S. equities in the second half of 2021, offering an opportunity to take profits on a portion of the position.

Master limited partnerships (MLPs)

MLPs rebounded strongly during the first half of 2021, but as the drawdown in the third quarter exemplified, the asset class remains highly volatile despite strength in energy prices. We remain unallocated.

Real estate investment trusts (REITs)

We re-allocated to US REITs in October, an asset class that strongly outperformed broad domestic stocks during the fourth quarter. We maintain a favorable view given REITs tend to offer resilient fundamentals in inflationary environments while generating relatively attractive income levels and benefiting as broader activity normalizes. With the recent move up in Treasury yields, we are less concerned about imbedded rate risk.

High yield debt Fundamentals remain strong with default activity low and technical demand (due to scarcity of yield globally) likely to remain a powerful tailwind. That said, we expect more muted returns given relatively tight spreads and lower all-in yields. We further trimmed exposure in January in favor of bank loans.

Investment grade debt

Owning meaningful amounts of investment grade bonds remains unattractive when adjusted for the negative real (inflation-adjusted) yields and today’s ultra-tight spreads. Furthermore, the investment grade asset class over time has lengthened in terms of duration and increased its proportion of lowest quality BBB-rated bonds, making the risk/reward even more asymmetric. We continue to run low exposure across the models.

Bank loans We again increased exposure to bank loans in January, an area we have increased several times over the past year. Bank loans offer appealing relative income and may offer greater resilience against the possibility of rising interest rates and higher market volatility as they are generally senior in the capital structure to high yield bonds.

Preferred stock Preferred stocks performed well in 2021, outperforming broad high yield, bank loans and investment grade. While fundamentals are supportive (i.e., U.S. banks — the dominant issuers of preferreds — should do well as the economy continues to re-open), yields are low and spreads are tight. We retain exposure to the asset class.

Emerging market debt

We added to EM sovereign bonds in October 2021. While China property concerns have weighed on the space overall, we believe this is well reflected in wider spreads versus developed market corporate and government bonds. EM markets may also have more room to benefit should COVID risks recede in 2022 given their slower vaccine rollout and economic recovery in 2021. However, we remain cognizant of the elevated volatility in the asset class and are thus keeping our exposure modest.

This material represents an assessment of the market environment as of the date indicated; is subject to change; and is not intended to be a forecast of future events or a guarantee of future results. This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) any 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 portfolio holdings of the Multi-Asset Income model portfolios reflects the current strategy of a fully discretionary, unconstrained account and is not the result of actual trading. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments and market, economic and other considerations.

Rigorous risk managementThere’s more to managing risk than navigating volatility in equity markets and interest rates. We manage overall portfolio risk by diversifying across a broad spectrum of risk sources based on rigorous analysis and research.

Source: BlackRock as of 12/31/21. For illustrative purposes only. Risk composition reflects month-end ex-ante risk using 252 days of data with a 40-day half life.

Non-G10 currency

G10 currency

Loans

Mortgages

Emerging market spread

High yield

Investment grade CMBS

Non U.S. interest rates

U.S. interest rates

Equity specific

Equity industry

Equity countryEquity styleConservative Moderate Growth

4

MKTGM0222U/S-2041873-4/8

5

High-level portfolio allocation and yield

Holdings updateEffective January 13, 2022

Conservative Moderate Growth

Current (%)

Change* (%)

Current (%)

Change* (%)

Current (%)

Change* (%)

Equity 14 2 31 – 53 –

U.S. equities

DGRO iShares Core Dividend Growth ETF 7 1 10 – 18 –

BMCIX BlackRock High Equity Income Fund 2 – 4 – 7 –

VYM Vanguard High Dividend Yield ETF – – 2 2 6 6

QUAL iShares Edge MSCI USA Quality Factor ETF – – – – – 4

International/ Global equities

BIBDX BlackRock Global Dividend Fund – – 6 – 9 –

IGRO iShares International Dividend Growth ETF – – 2 2 3 3

IQLT iShares MSCI Intl Quality Factor ETF – – – 2 – 3

ESGE iShares ESG Aware MSCI EM ETF – – 2 – 4 –

Sector equitiesXLU Utilities Select Sector SPDR Fund 3 1 3 2 4 2

BIREX BlackRock Real Estate Securities Fund 2 – 2 – 2 –

Fixed income 69 2 52 – 30 –

Investment grade

IGSB iShares Short–Term Corporate Bond ETF 8 5 – – – –

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 2 2 – – – –

FLOT iShares Floating Rate Bond ETF – 7 – – – –

High yield BHYIX BlackRock High Yield Bond Fund 9 – 15 – 5 –

SHYG iShares 0–5 Year High Yield Corporate Bond ETF – 3 – 3 – –

Floating rate loans BFRIX BlackRock Floating Rate Income Fund 19 5 15 3 6 –

Non–traditional fixed income

BSIIX BlackRock Strategic Income Oppts Fund 19 – 7 – – –

BMSIX BlackRock Income Fund 5 – 5 – 5 –

Preferred stock PFF iShares Preferred and Income Securities ETF 4 – 7 – 7 –

Emerging market debt EMB iShares J.P. Morgan USD Emerging Markets Bond

ETF 3 – 3 – 7 –

Multi–asset 15 – 15 – 15 –

Tactical income BDHIX BlackRock Dynamic High Income Fund 15 – 15 – 15 –

Cash 2 – 2 – 2 –

100 0 100 0 100 0

* Change since previous trade date on 10/21/21.

The 12–month trailing yield for the model portfolios assumes that the constituents were held in the weights as of the most recent quarter end and does not reflect changes made in response to market conditions. Current asset allocations for sample portfolios are subject to change. Values may not equal 100% due to rounding.

This information should not be relied upon as investment advice, research, or a recommendation by BlackRock regarding (i) any 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 portfolio holdings of the Multi–Asset Income model portfolio reflects the current strategy of a fully discretionary, unconstrained account and is not the result of actual trading. Actual portfolios may differ as a result of account size, client–imposed investment restrictions, the timing of client investments and market, economic and other considerations.Multi-asset

Cash

Fixed income

Equity

Multi-asset

Cash

Fixed income

Equity

Multi-asset

Cash

Fixed income

Equity

Conservative3.13%

Moderate 3.48%

Growth 3.18%

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The Omicron variant helped spook markets into negative returns in November, but strong returns in October and December were enough to push many markets back to all-time highs by year-end. Developed market stocks outperformed while emerging market stocks struggled. U.S. REITs, in particular, produced standout returns amidst rising inflation while MLPs were broadly flat during the quarter after delivering strong performance in the first half of the year.

The Fed announced the end to its asset purchase program and signaled it may raise interest rates faster than originally expected due to inflationary pressures. Treasury yields grinded modestly higher to end the year. High quality bonds struggled in the fourth quarter like they did for much of the year driven by higher interest rates and inflation. Core bonds delivered their worst full-year return since 2013. Against this backdrop, lower credit quality fixed income — including preferred stock, high yield and floating rate bank loans — did relatively well. Emerging market debt was flat as China concerns and COVID risks to growth lingered.

Market highlights

Quarterly returns for the period 9/30/21-12/31/21. Represented Indices: U.S. equities, S&P 500 Index; Dividend equities, MSCI World High Dividend Yield Index; U.S. REITs, FTSE NAREIT All Equity REITs Index; MLPs, Alerian MLP Index; Treasury bonds, Bloomberg U.S. Treasury 7-10 Yr Index; Investment grade bonds, Bloomberg U.S. Corporate Bond Index; Core bonds, Bloomberg U.S. Aggregate Bond Index; High yield bonds, Bloomberg High Yield 2% Issuer Capped Index; EM bonds, JP Morgan Emerging Market Bond Index-Global; Bank loans, S&P/LSTA Leveraged Loan Index; Preferred stock, S&P Preferred Stock Index. It is not possible to invest directly in an index. Past performance does not guarantee or indicate future results.

Quarterly performance review (Fourth quarter 2021)

Portfolio performance

Largest detractorsAn income-focused global credit exposure

Emerging market equities

A flexible fixed income strategy

Largest contributorsHigh dividend stocks

Utility sector equities

A diversified multi-asset exposure

Attribution may vary between each Model Portfolio Strategy depending on specific holdings and weightings.

Equity markets Fixed income markets

U.S. equities

Dividendequities

U.S.REITs

MLPs Emergingmarketbonds

Highyield

bonds

Bankloans

Preferredstock

Treasury bonds

Investmentgradebonds

Corebonds

11.0%

7.0%

16.2%

0.6% 0.3% 0.0%0.2% 0.0% 0.8%0.7% 1.2%

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Composite returnsGross composite returns do not reflect any fees or expenses that may be charged by a program sponsor or financial advisor in relation to the management of a client’s account.

Net composite returns reflect the deduction of the highest program sponsor fee as determined by a survey of program sponsors who partner with BlackRock. Program sponsor fees are not determined by BlackRock and may vary widely among program sponsors. The net composite returns below reflect the deduction of the maximum annual fee of 3% charged on a quarterly basis, based on the most recent survey. In practice, the actual fee charged by a program sponsor may be much lower and therefore have a smaller impact on the net performance returns.

Cumulative returns (%) Annualized returns (%) Standard Deviation (%) Weighted average expense

ratio (%)**As of 12/31/21 4Q21 YTD 1 Year 3 Year Since

inception* 1 Year Since inception*

MAI MF/ETF Conservative (Gross) 2.42 6.12 6.12 8.10 5.40 3.45 5.36 0.56%MAI MF/ETF Conservative (Net) 1.65 2.94 2.94 4.86 2.23 3.44 5.35 0.52%Benchmark 2.34 5.09 5.09 9.97 7.15 3.84 5.05 —MAI MF/ETF Moderate (Gross) 3.51 8.64 8.64 9.01 6.12 5.05 7.71 0.58%MAI MF/ETF Moderate (Net) 2.73 5.38 5.38 5.74 2.94 5.04 7.69 0.53%Benchmark 3.89 9.69 9.69 13.38 9.36 5.40 7.77 —MAI MF/ETF Growth (Gross) 5.26 12.40 12.40 10.90 6.57 7.35 11.05 0.50%MAI MF/ETF Growth (Net) 4.46 9.03 9.03 7.57 3.37 7.33 11.02 0.45%Benchmark 5.44 14.43 14.43 16.75 11.04 7.18 11.03 —

Standard deviation based on ex-post monthly returns. * Inception date of MAI MF/ETF Conservative is 12/31/16; MAI MF/ETF Moderate, 2/1/17; Universal MAI SMA 12/13/11; MAI MF/ETF Growth, 5/31/17. ** The difference between gross and net expense ratios are due to contractual and/or voluntary waivers on underlying funds, if applicable. Any applicable waiver will be terminable based upon each fund’s respective prospectus notice period. BlackRock may agree to voluntarily waive certain fees and expenses, which the adviser may discontinue at any time without notice. Please see the respective prospectus’s for contractual waiver end dates. Components of the risk benchmarks are as follows: 30% MSCI World Index & 70% Bloomberg U.S. Aggregate Bond Index for MAI MF/ETF Conservative, 50% MSCI World Index & 50% Bloomberg U.S. Aggregate Bond Index for MAI MF/ETF Moderate, and 70% MSCI World Index & 30% Bloomberg U.S. Aggregate Bond Index for MAI MF/ETF Growth. It is not possible to invest directly in an index. Past performance is not indicative of future results. See disclosure for benchmark information and relevant GIPS disclosure.

Ticker Mutual Fund/ETF Inception Expense SEC Yield (%)

NAV (%)

Market  Price (%)

NAV (%)

Market  Price (%)

NAV (%)

Market  Price (%)

NAV (%)

Market  Price (%)

DGRO iShares Core Dividend Growth ETF 06/10/14 0.08 1.93 26.56 26.64 16.69 16.69 – – 13.80 13.97

QUAL iShares MSCI USA Quality Dividend ETF 07/16/13 0.15 0.99 26.90 26.93 18.06 18.06 – – 15.38 15.35

IQLT iShares MSCI Intl Quality Factor ETF 01/13/15 0.30 2.19 12.78 12.94 12.52 12.51 – – 8.98 8.89

VYM Vanguard High Dividend Yield ETF 11/10/06 0.06 2.66 26.14 26.21 11.67 11.65 12.99 12.98 8.80 8.80

BIREX BlackRock Real Estate Securities Fund 09/28/12 0.75 – 46.22 – 13.03 – – – 11.93 –

BMCIX BlackRock High Equity Income Fund 05/01/98 0.85 7.01 23.01 – 10.54 – 11.78 – 13.00 –

BIBDX BlackRock Global Dividend Fund 04/07/08 0.75 – 17.85 – 10.66 – 9.36 – 7.39 –

IGRO iShares International Dividend Growth ETF 05/17/16 0.15 2.26 9.83 9.95 9.89 9.65 – – 8.92 9.17

ESGE iShares ESG Aware MSCI EM ETF 06/28/16 0.25 1.79 –2.78 –2.84 10.28 10.30 – – 10.90 9.16

XLU Utilities Select Sector SPDR Fund 12/16/98 0.12 2.32 17.58 17.69 11.64 11.65 10.91 10.91 7.74 7.62

FLOT iShares Floating Rate Bond ETF 06/14/11 0.15 0.28 0.29 0.45 1.67 1.68 1.55 1.53 1.28 1.28

LQD iShares iBoxx $ Investment Grade Corporate Bond ETF 07/22/02 0.14 2.39 –1.57 –1.84 5.73 5.66 5.06 4.94 5.61 5.59

IGSB iShares Short-Term Corporate Bond ETF 01/05/07 0.06 1.45 –0.49 –0.56 2.87 2.85 2.18 2.13 2.84 2.82

BHYIX BlackRock High Yield Bond Fund 11/19/98 0.62 3.85 5.90 – 6.31 – 6.98 – 7.23 –

SHYG iShares 0-5 Year High Yield Corp Bond ETF 10/15/13 0.30 3.59 4.97 4.60 4.64 4.51 – – 4.05 4.02

BFRIX BlackRock Floating Rate Income Fund 03/18/11 0.71 2.88 4.07 – 3.69 – 4.28 – 4.37 –

BSIIX BlackRock Strategic Income Oppts Fund 02/05/08 0.75 1.62 0.96 – 3.99 – 4.01 – 4.21 –

BMSIX BlackRock Income Fund 02/26/10 0.65 3.22 –0.07 – 4.76 – 4.97 – 5.04 –

PFF iShares US Preferred Stock ETF 03/26/07 0.46 4.16 7.09 7.14 6.63 6.68 6.89 6.90 4.84 4.84

EMB iShares JP Morgan USD EM Mkts Bd ETF 12/17/07 0.39 4.17 –2.45 –2.24 4.29 4.41 4.65 4.59 5.51 5.48

BDHIX BlackRock Dynamic High Income Fund 11/03/14 0.68 4.52 10.77 – 8.14 – – – 6.63 –

As of 12/31/21.

MKTGM0222U/S-2041873-7/8

Indexes are unmanaged and used for illustrative purposes only and are not intended to be indicative of the performance of any fund or managed model. It is not possible to invest directly in an index. The firm claims compliance with GIPS®. For a complete list and description of the firm’s composites and/or a presentation that adheres to the GIPS standards, contact smamarketing@blackrock.com. For purposes of compliance with the Global Investment Performance Standards (GIPS®), the “firm” refers to the investment adviser and national trust bank subsidiaries of BlackRock, Inc., located globally. This definition excludes: i) BlackRock subsidiaries that do not provide investment advisory or management services, ii) the Absolute Return Strategies (funds-of-hedge-funds) business unit under the “BlackRock Alternative Advisers” platform, iii) BlackRock Capital Investment Corporation, LLC, iv) FutureAdvisor, Inc., and v) retail mutual funds and separately managed accounts within BlackRock México Operadora, S.A. de C.V., Sociedad Operadora de Fondos de Inversión.

BlackRock Multi-Asset Income MF/ETF - Conservative SMA Composite: This investment strategy seeks current income and to a lesser extent capital preservation. Over the long term, the strategy generally is expected to have a level of risk similar to or lower than that of a blended benchmark of 70% Bloomberg US Aggregate Bond Index and 30% MSCI World Index. It invests in a diversified portfolio of mutual funds and exchange traded funds. Pooled investment vehicles may pay fees and expenses to BlackRock that are in addition to the fees payable to BlackRock for managing the account. Selection of this strategy indicates a willingness to assume a moderate level of portfolio turnover. More detailed information on this strategy is available upon request. As of December 1, 2017 the BlackRock Core Income Conservative MF/ETF SMA Composite has been renamed BlackRock Multi- Asset Income MF/ETF Conservative SMA Composite. The performance results from 12/31/2016 to the end of the most recent calendar year represents the performance of one fully discretionary, unconstrained proprietary separate account managed in this style for one full month that does not pay any fees. The creation date of the composite is 11/01/2017. New accounts and accounts that have changed their investment mandate to that of the composite are included in the composite upon the completion of the first full month under management. Closed accounts and accounts that change their investment mandate are included in the composite through the completion of the last full month under management or the last full month under the old strategy.

BlackRock Multi-Asset Income MF/ETF Moderate SMA Composite. This investment strategy seeks current income and to a lesser extent long-term capital appreciation. Over the long-term, the strategy generally is expected to have a level of risk similar to or lower than that of a blended benchmark of 50% Bloomberg US Aggregate Bond Index and 50% MSCI World Index. It invests in a diversified portfolio of mutual funds and exchange traded funds. Mutual funds and pooled investment vehicles may pay fees and expenses to BlackRock that are in addition to the fees payable to BlackRock for managing the account. Selection of this strategy indicates a willingness to assume a moderate level of portfolio turnover. More detailed information on this strategy is available upon request. As of December 1, 2017 the BlackRock Core Income Moderate MF/ETF SMA Composite has been renamed BlackRock Multi-Asset Income MF/ETF Moderate SMA Composite. The performance results from 02/01/2017 to the end of the most recent calendar year represents the performance of one fully discretionary, unconstrained proprietary separate account managed in this style for one full month that did not pay any fees. The creation date of the composite is 10/15/2017. New accounts and accounts that have changed their investment mandate to that of the composite are included in the composite upon the completion of the first full month under management. Closed accounts and accounts that change their investment mandate are included in the composite through the completion of the last full month under management or the last full month under the old strategy.

BlackRock Multi-Asset Income MF/ETF Growth SMA Composite: This investment strategy seeks current income and long-term capital appreciation. Over the long-term, the strategy generally is expected to have a level of risk similar to or lower than that of a blended benchmark of 70% MSCI World Index and 30% Bloomberg US Aggregate Bond Index. It invests in a diversified portfolio of mutual funds and exchange traded funds. Pooled investment vehicles may pay fees and expenses to BlackRock that are in addition to the fees payable to BlackRock for managing the account. Selection of this strategy indicates a willingness to assume a moderate level of portfolio turnover. Insert strategy description. More detailed information on this strategy is available upon request. As of December 1, 2017 the BlackRock Core Income Growth MF/ETF SMA Composite has been renamed BlackRock Multi-Asset Income MF/ETF Growth SMA Composite. The performance results from 05/31/2017 to the end of the most recent calendar year represents the performance of one fully discretionary, unconstrained proprietary separate account managed in this style for one full month that does not pay any fees. The creation date of the composite is 11/01/2017. New accounts and accounts that have changed their investment mandate to that of the composite are included in the composite upon the completion of the first full month under management. Closed accounts and accounts that change their investment mandate are included in the composite through the completion of the last full month under management or the last full month under the old strategy.

Investing involves risk. Information concerning portfolio allocations and holdings is representative of the target portfolio for this strategy and does not necessarily reflect an actual account. Actual portfolios may differ as a result of account size, client-imposed investment restrictions, the timing of client investments, market, economic and individual company considerations. Futures and options may not be used in the portfolio to create leverage or for any other reason.

Past performance does not guarantee or indicate future results. Any performance information included herein represents the performance achieved by BlackRock as a discretionary investment manager with trade implementation responsibility for the accounts included in the performance composite. The performance shown does not reflect the performance of Model-Based Program accounts managed by a Sponsor or Overlay Portfolio Manager (OPM) utilizing BlackRock’s non-discretionary investment recommendations. In Model-Based Programs, although it is generally contemplated that the Sponsor or OPM will implement BlackRock’s investment recommendations in Program accounts, the performance of such accounts may differ from the performance shown for a variety of reasons, including but not limited to: the Sponsor or OPM, and not BlackRock, is responsible for implementing trades in the accounts; differences in market conditions; client-imposed investment restrictions; the timing of client investments and withdrawals; fees payable by Model-Based Program accounts; and/or other factors. The performance results to the end of the most recent calendar quarter represent the performance of one fully discretionary, unconstrained, proprietary separate account that did not pay any fees, managed in this style by the firm for at least one month.

Composite and benchmark/index performance results reflect realized and unrealized appreciation and the reinvestment of dividends, interest, and/or capital gains. Taxes have not been deducted. Gross composite returns do not reflect actual performance because they do not reflect the deduction of any fees or expenses. Certain performance figures do not reflect the deduction of investment advisory fees (please refer to Part 2 of BlackRock’s Form ADV) in the case of both separate investment accounts and mutual funds; but they do reflect commissions, other expenses (except custody), and reinvestment of earnings. Such fees that a client may incur in the management of their investment advisory account may reduce the client’s return. The “net of fees” performance figures reflect the deduction of actual investment advisory fees but do not reflect the deduction of custodial fees. All periods longer than one year are annualized. Net composite returns reflect the deduction of an annual fee of 3.00% typically deducted quarterly. Due to the compounding effect of these fees, annual net composite returns may be lower than stated gross returns less stated annual fee. Index returns do not reflect transaction costs or the deduction of fees and it is not possible to invest directly in an index. This material has been created by BlackRock and the information included herein has not been verified by your program sponsor and may differ from information provided by your program sponsor. This material must be preceded or accompanied by the manager profile, which you can obtain from your Financial Advisor.

This material may contain “forward-looking” information that is not purely historical in nature. Such information may include, among other things, projections, forecasts, estimates of yields or returns, and proposed or expected portfolio composition. Moreover, where certain historical performance information of other investment vehicles or composite accounts managed by BlackRock has been included in this material and such performance information is presented by way of example only. No representation is made that the performance presented will be achieved, or that every assumption made in achieving, calculating or presenting either the forward-looking information or the historical performance information herein has been considered or stated in preparing this material. Any changes to assumptions that may have been made in preparing this material could have a material impact on the investment returns that are presented herein by way of example. There is no guarantee that any forecasts made will come to pass.

For financial professionals: BlackRock’s role is limited to providing you or your firm (collectively, the “Advisor”) with non-discretionary investment advice in the form of model portfolios in connection with its management of its clients’ accounts. The implementation of, or reliance on, a Managed Portfolio Strategy is left to the discretion of the Advisor. BlackRock is not responsible for determining the securities to be purchased, held and sold for a client’s account(s), nor is BlackRock responsible for determining the suitability or appropriateness of a Managed Portfolio Strategy or any securities included therein for any of the Advisor’s clients. BlackRock does not place trade orders for any of the Advisor’s clients’ account(s). Information and other marketing materials provided to you by BlackRock concerning a Managed Portfolio Strategy — including holdings, performance and other characteristics — may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. For end users: BlackRock’s role is limited to providing your Advisor with non-discretionary investment advice in the form of model portfolios in connection with its management of its clients’ accounts. The implementation of, or reliance on, a Managed Portfolio Strategy is left to the discretion of your Advisor. BlackRock is not responsible for determining the securities to be purchased, held and sold for your account(s), nor is BlackRock responsible for determining the suitability or appropriateness of a Managed Portfolio Strategy or any securities included therein. BlackRock does not place trade orders for any Managed Portfolio Strategy account. Information and other marketing materials provided to you by BlackRock concerning a Managed Portfolio Strategy — including holdings, performance and other characteristics — may not be indicative of a client’s actual experience from an account managed in accordance with the strategy. This material has been created by BlackRock and the information included herein has not been verified by your Advisor and may materially differ from information provided by your Advisor.

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Not FDIC Insured • May Lose Value • No Bank Guarantee

Lit No. MAI-MPS-COM-1221 OE12205T-0222

MKTGM0222U/S-2041873-8/8