Blackrock Diversified Income Portfolio | Investment Strategy

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This chart is for illustrative purposes only and does not predict or depict the portfolio's asset allocation, investment selection/types of investments, or percent holdings the account can invest in. Asset allocation does not ensure a profit or guarantee against loss.

As you can see in the chart below, one of the portfolio's strengths is the freedom it has to go beyond traditional sources of income and pursue nontraditional income sources—such as ETF exposure to bank loans, preferred stock, and emerging market debt—in order to seek yield.

This chart is for illustrative purposes only and does not predict or depict the portfolio's asset allocation, investment selection/types of investments, or percent holdings the account can invest in.

A Way to Potentially Outpace Inflation
As you can see above, some traditional income investments are currently, providing yields that lag inflation. Investing in nontraditional sources of income is a way to potentially counter low yields. That's why it's important to have a mix of both types of investments.

More about Nontraditional Sources of Income
Nontraditional sources of income—such as real estate investment trusts (REITs), emerging market debt, bank loans, master limited partnerships (MLPs), and preferred stock—not only may provide additional opportunities for diversification, but may offer a way to capture yield

Source: Bloomberg, Standard & Poor's and U.S. Department of the Treasury as of 12/31/2023. Long-term inflation rate (CPI data) is approximately 2.9% sourced from Morningstar from 1926 through 12/31/2023. Index yields are shown for illustrative purposes only and do not predict or depict the yield of this product. Securities indexes are unmanaged and are not subject to fees and expenses typically associated with managed accounts or investment funds. You cannot invest directly in an index. Past performance does not guarantee future results. Fixed income yields are represented by Yield to Worst. The yield reflected for Short Term is the 3 Month Daily Treasury Yield Curve Rate. All other yields are represented by Current Yield (Trailing 12-Month Yield). U.S. Treasuries represented by the Bloomberg U.S. 7-10 Year Treasury Bond Index, including U.S. Treasury securities with a maturity of 7–10 years. Core bonds represented by the Bloomberg U.S. Aggregate Index, comprising more than 5,000 investment-grade taxable bonds. Investment-grade bonds represented by the Bloomberg investment-grade Index, consisting of publicly issued, fixed rate, non-convertible investment grade debt securities. High-yield bonds represented by the Bloomberg High Yield 2% Issuer Capped Index, comprising issues that have at least $150 million par value outstanding, a maximum credit rating of Ba1 or BB+ (including defaulted issues) and at least one year to maturity. Each issuer is limited to 2% of the index. Bank loans represented by the S&P Leveraged Loan Index, designed to reflect the largest facilities in the leveraged loan market. It mirrors the market weighted performance of the largest institutional leveraged loans based on market weightings, spreads, and interest payments. U.S. stocks represented by the S&P 500 Index, covering 500 industrial, utility, transportation, and financial companies of the U.S. markets (mostly NYSE issues). Global stocks represented by the MSCI World Index, consisting of a market value–weighted average of the performance of about 1,350 securities on the stock exchange of selected countries. Dividend-paying stocks represented by the MSCI USA High Dividend Yield Index, reflecting the performance of the high dividend yield of large- and mid-cap stocks in the U.S. Preferred stock represented by the S&P U.S. Preferred Stock Index , measuring the performance of preferred stocks listed in the U.S. with a market capitalization over $100 million. Emerging market debt represented by the Bloomberg Barclays Emerging Market Debt Index, an unmanaged index that tracks total returns for externalcurrency- denominated debt instruments of the emerging markets. U.S. REITs represented by the FTSE NAREIT Equity REITs Index, measuring the stock performance of companies engaged in the ownership and development of the real estate markets. Master limited partnerships represented by the Alerian MLP Index, a market cap– weighted, float-adjusted index composite of the 50 most prominent energy master limited partnerships (MLPs). Money market yields are based off the 3-Month Treasury Yield Curve Rate. Treasury Yield Curve Rates are commonly referred to as "Constant Maturity Treasury" rates, or CMTs. Yields are interpolated by the Treasury from the daily yield curve. This curve, which relates the yield on a security to its time to maturity, is based on the closing market bid yields on actively traded Treasury securities in the over-the-counter market. These market yields are calculated from composites of quotations obtained by the Federal Reserve Bank of New York. The yield values are read from the yield curve at fixed maturities, currently 1, 3 and 6 months and 1, 2, 3, 5, 7, 10, 20, and 30 years. Source: U.S. Department of the Treasury, www.treasury.gov, as of 12/31/2014. You cannot invest directly in an index. Diversification does not ensure a profit or guarantee against loss.

Blackrock^® Diversified Income Portfolio

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$50,000¹

0.50%–1.50%²

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A Flexible Approach to Yield

Expanded Income Opportunities

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Blackrock® Diversified Income Portfolio

Summary

FAQs

Summary

$50,0001

0.50%–1.50%2

FAQs

Let's talk about how we can work together

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Blackrock^® Diversified Income Portfolio

$50,000¹

0.50%–1.50%²