Fund Description

Incepted in July 1992, the fund is managed by BlackRock Advisors. 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.