BlackRock Multi-Asset Income Fund Q2 2024 Commentary

Average annual total returns (%) as of 6/30/24

	2Q24 (not annualized)	YTD (not annualized)	1 Year	3 Year	5 Years	10 Years
Institutional (MUTF:BIICX)	0.79	3.41	9.72	1.06	3.77	3.81
Investor A (Without Sales Charge)	0.72	3.29	9.45	0.83	3.51	3.55
Investor A (With Sales Charge)	-4.57	-2.14	3.70	-0.96	2.40	3.00
Morningstar Moderately Conservative Allocation Category Avg.	0.75	4.05	9.14	0.70	4.25	4.06
Blended Benchmark ¹	1.35	5.40	11.19	2.01	5.92	5.44

Expenses for Institutional shares: Total 0.68%; Net, Including Investment Related Expenses (dividend expense, interest expense, acquired fund fees and expenses and certain other fund expenses) 0.57%. For Investor A shares: Total 0.91%; Net, Including Investment Related Expenses 0.82%. Institutional and Investor A shares have contractual waivers with an end date of 06/30/2025 terminable upon 90 days’ notice. For certain share classes, BlackRock may voluntarily agree to waive certain fees and expenses in which the adviser may discontinue at any time without notice. Expenses stated as of the fund’s most recent prospectus. 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. Refer to Investment Management & Financial Services | BlackRock for most recent month-end performance. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an unmanaged index. Share classes have different sales charges, fees and other features. Returns with sales charge reflect deduction of current maximum initial sales charge of 5.25% for Investor A shares. Institutional shares have no front- or back-end load. Institutional shares have limited availability and may be purchased at various minimums. See prospectus for details. Net Expenses Excluding Investment Related Expenses for Institutional shares: 0.55%; for Investor A shares: 0.80%.

Commentary as of 06/30/24

The fund posted returns of 0.79% (Institutional shares) and 0.72% (Investor A shares, without sales charge) for the second quarter quarter of 2024, while its benchmark, a blend of 50% MSCI World Index and 50% U.S. Aggregate Bond Index, returned 1.35%. At quarter-end, the fund’s 30-day SEC yield was 6.15% subsidized and 6.03% unsubsidized for institutional shares, and 5.58% subsidized and 5.49% unsubsidized for investor A shares. The fund strives to maintain a consistent yield and attractive total return with volatility similar to or less than its risk benchmark. Performance is reviewed on an absolute basis due to the nature of the fund. In May, we tactically reduced equity exposure, as various markets returned to year-todate highs, and U.S. preferred stock exposure, in favor of cash and European high yield credit, where spreads were relatively wider. In June, we reduced the allocations to U.S. high yield credit and cash in favor of dividend growth equities and defensive fixed income.

Top 10 equity holdings (%)

iShares Core Dividend Growth ETF (DGRO)

Microsoft Corp (MSFT) – Eln

Taiwan Semiconductor Manufacturing (TSM)

Amazon Com Inc (AMZN) – Eln

Apple Inc (AAPL) – Eln

Alphabet Inc Class A (GOOG,GOOGL

Meta Platforms Inc Class A (META) – Eln

Microsoft

Nvidia Corp (NVDA) – Eln

Novo Nordisk (NVO) Class B

*equity-linked note

4.21

0.80

0.72

0.53

0.51

0.41

0.35

0.33

0.28

0.25

Contributors

Floating rate exposures, including collateralized loan obligations and individual bank loans, were the largest contributors to performance, driven by coupon income. Similarly, despite already tight spreads, other lower-quality bond positions, including commercial and nonagency residential mortgages, high yield bonds, and preferred stock, also delivered positive results from income returns. The cash position was additive amid higher front-end rates. Emerging market and international developed market equities boosted returns, while currency hedging was generally positive.

Detractors

Futures used to manage duration (interest rate sensitivity) and provide support to the fund s higher equity allocation detracted as the five- and 10-year points of the U.S. Treasury curve moved meaningfully higher at the beginning of the quarter. This ultimately led to a negative price return. Similarly, more rate sensitive real estate investment trusts weighed modestly on performance. In addition, although the S&P 500 and Nasdaq indices reached all-time highs, breadth was narrow and U.S. dividend oriented names in the fund lagged.

Further insight

We expect U.S. growth to remain strong in 2024, although it is likely to decelerate from the highs reached in the second half of 2023. We acknowledge the progress made on inflation but caution against any early celebrations. The fund’s equity exposure remains at the higher end of the historical range, due to strong earnings growth and more inexpensive valuations for dividend growth expressions, especially in the United States. We remain very light on long duration assets on poor valuations coupled with a concerning fiscal outlook. We prefer to look for better “carry” opportunities across spread assets in floating rate, European credit, and parts of the investment grade corporate market. We remain very selective and continue to reduce exposure where we see complacency and unattractive risk/reward profiles.

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. The Fund may invest significantly in BlackRock equity and/or fixed income mutual funds (“underlying funds”) and affiliated and unaffiliated ETFs. As such, it is subject to the risks associated with the underlying BlackRock funds in which it invests. 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 political risks, 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. Asset allocation strategies do not assure profit and do not protect against loss. 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. 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.

The opinions expressed are those of the fund’s portfolio management team as of June 30, 2024, and may change as subsequent conditions vary. Information and opinions are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy.

BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings.

1 Blended benchmark is 50% MSCI World Index/50% U.S. Aggregate Bond. MSCI World is designed to measure the equity market performance of developed markets, including the United States. U.S. Aggregate Bond Index comprises the total U.S. investment grade bond market.

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 800-882-0052 or from your financial professional. The prospectus should be read carefully before investing.

Prepared by BlackRock Investments, LLC, member FINRA.

Not FDIC Insured • May Lose Value • No Bank Guarantee

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