Fund Description

Incepted in December 2001, the fund is managed by BlackRock Advisors. The fund seeks to realize a total return that exceeds that of the Lehman Brothers Aggregate Index. The fund normally invests at least 80% of its assets in bonds that allow it to maintain an average portfolio duration that is within +/-20% of the Lehman Brothers Aggregate Index. The fund management team invests primarily in dollar-denominated investment grade bonds but may invest up to 20% of its total assets in any combination of non-investment grade bonds (high yield or junk bonds), bonds denominated in foreign currencies and bonds of foreign (including emerging markets) issuers. The management team selects bonds from several categories including U.S. Treasuries and agency securities, commercial and residential mortgage-backed securities, asset-backed securities and corporate bonds. The fund offers dividends every month and capital gains annually.