Fund Description

Incepted in July 1992, the fund is managed by BlackRock Advisors. The fund seeks to realize a rate of return that exceeds the total return of the Merrill Lynch 1-3 Year Treasury Index. The fund invests primarily in investment grade bonds that allow it to maintain an average portfolio duration that is within +/- 20% of the Merrill Lynch 1-3 Year Treasury Index. The fund normally invests at least 80% of its assets in bonds diversified among several categories. The fund may also invest up to 20% of its assets in non-investment grade bonds or convertible securities with a minimum rating of 'B' and up to 20% of its assets in bonds of foreign issuers. The fund management team selects securities from several categories including U.S. Treasuries and agency securities, asset-backed securities, collateralized mortgage obligations (CMOs), corporate bonds and commercial and residential mortgage-backed securities. The fund offers dividends every month and capital gains annually.