BlackRock Global Allocation Fund A Portfolio for All Seasons

Transcription

1 BlackRock Global Allocation Fund A Portfolio for All Seasons

2 A Portfolio for All Seasons 2009 Lipper Award Winner Institutional shares ranked No. out of 46 funds in the 3-year time period ending 2/3/08 Global Flexible Portfolio Funds category* Today, global economies are more interconnected than ever. The United States traditional role as the engine of the global economy is changing profoundly as other parts of the world experience rapid economic growth and development. At BlackRock, we believe this changing global landscape presents investors with an unprecedented opportunity to shift their investment perspective, establishing a global strategy as the core of their investment portfolios. The BlackRock Global Allocation Fund provides broad diversification across stocks, bonds and cash around the globe and can help investors navigate through unpredictable markets. The BlackRock Global Allocation Fund helps you achieve your long-term financial goals by providing a: portfolio for all seasons unique approach to diversification disciplined management team history of proven performance Many successful investors have adopted a core/satellite approach to portfolio Building a Portfolio Around the BlackRock Global Allocation Fund construction, which provides a solid framework for implementing an asset allocation model. Establishing a core Tactical (Regional and/or Sector) portfolio that is highly diversified among asset classes, market capitalizations and regions can help protect investors during market downturns, while participating in positive markets. Investors can enhance and further customize their core portfolios by adding shorter-term, Equity (Small-, Midand Large- Capitalization) BlackRock Global Allocation Fund Fixed Income (Across Quality and Maturity) tactical, satellite investments, which are designed to opportunistically take advantage of market trends or special investment situations. International (Equity and Fixed Income) * BlackRock Global Allocation Fund ranked 5 out of 35 funds for the 5-year time period and 3 out of 2 funds for the 0-year time period ending December 3, NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE 2

3 A Unique Approach to Diversification Most investors understand that their portfolios need to be appropriately allocated among stocks, bonds and cash in order to temper volatility while pursuing return. In addition, diversification within asset classes by type of security, sector and region can further help mitigate unnecessary risk. The BlackRock Global Allocation Fund typically invests in more than 700 securities across stocks, bonds and cash. As illustrated by the chart below, the fund s Investor A shares at NAV have outperformed their peer group as well as US and international stocks and bonds from 2000 to Seeking to Reward and Preserve Over the Long Term As the chart below illustrates, the highly diversified BlackRock Global Allocation Fund outperformed its peer group in bear and bull markets. A Diversified Fund Designed to Perform in all Market Conditions*: Cumulative Total Return % Bear Market //00 2/3/02 Bull Market //03 2/3/07 Bear Market 2 //08 2/3/08 Combination //00 2/3/08 Sources: Lipper, Inc.; Bloomberg. Data as of 2/3/08. Bear Market Bull Market Bear Market 2 Combination BlackRock Global Allocation Fund (A at NAV).80% 3.98% % 87.60% US Stocks International Stocks US Bonds International Bonds Lipper Global Flexible Category Avg BlackRock Global Allocation Fund (A With Maximum Sales Charge) Performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Refer to to obtain performance data current to the most recent month-end. All returns assume reinvestment of all distributions. Index performance is shown for illustrative purposes only. You cannot invest directly in an index. US stocks are represented by the S&P 500 Index. 2 International stocks are represented by the FTSE World Index ex-us. 3 US bonds are represented by the Merill Lynch 5-Year US Treasury Bond Index. 4 International bonds are represented by the Citigroup Non-USD World Government Bond Index. (See back cover for index details.) * Relative to its peer group and other broad-based indices. Maximum initial sales charge of 5.25% for Investor A shares deducted at beginning of investment period on //00. Total return is based on net asset value (NAV) and assumes initial investment on //00. 3

4 A Disciplined Management Team Investment Process Universe Global stocks and bonds (across all company sizes and qualities) and cash equivalents. Research The team leverages global research and explores investment ideas by analyzing market trends, demographic changes and corporate financial statements and by participating in regular meetings with the management teams of companies it is researching. Asset Allocation Top-down consideration of asset classes, regions and industries. The fund s reference benchmark is 60% equities, 40% fixed income/ 60% US, 40% non-us. The BlackRock Global Allocation Fund management team seeks to provide high total return with relatively low to moderate levels of volatility through a fully managed investment policy utilizing US and foreign equity, debt and money market securities. As illustrated to the left, the management team follows a comprehensive and disciplined investment process when selecting investments for the fund s portfolio. Senior portfolio manager Dennis Stattman, CFA, and associate portfolio managers Dan Chamby, CFA, and Aldo Roldan, PhD, oversee the overall asset mix, geography, industry and currency allocation strategies. The investment team is highly experienced and includes seven analysts and eight research associates in addition to Mr. Stattman, Mr. Chamby and Mr. Roldan. The analysts have a wide degree of flexibility in the development of investment ideas and have both equity and fixed income expertise. Strong team interaction and knowledge sharing exists among the overall group, utilizing BlackRock s worldwide resources for investment ideas, fundamental analysis, technology and risk analysis. The team also draws on the expertise of James Macmillan, the senior portfolio manager who oversees the European value strategies for the BlackRock European Style Diversified team, when looking for attractive equity investments located in European regions. Portfolio Construction Typically more than 700 holdings, broadly diversified. Sell Discipline Valuation significantly above historic averages. Change in company fundamentals. Risk impact on fund. The investment process described for the fund in this brochure represents the fund manager s current process for selecting investments in the fund s portfolio in accordance with the fund s stated investment objectives and policies. Processes are subject to change based on market conditions, the opinions of the portfolio manager and other factors. The Global Allocation Fund Team 4

5 Leveraging More Than 200 Years of Investment Experience Dennis Stattman, CFA Senior Portfolio Manager Portfolio Manager of the BlackRock Global Allocation Fund since its inception in years of industry experience Dan Chamby, CFA Associate Portfolio Manager Member of the BlackRock Global Allocation Fund team since years of industry experience Aldo Roldan, PhD Associate Portfolio Manager 25 years of industry experience Ben Moyer, CFA Senior Fund Analyst 28 years of industry experience Karen Morely, CFA Senior Fund Analyst 24 years of industry experience Kate Brady-Rauscher, CFA Senior Fund Analyst 23 years of industry experience Lisa O Donnell, JD Senior Fund Analyst 8 years of industry experience Kent Hogshire, CFA Senior Fund Analyst 9 years of industry experience Patrick Edelmann, CFA Fund Analyst 0 years of industry experience Competitive returns with low to moderate levels of risk can be achieved through a flexible, research-intensive, valueoriented approach that seeks the best investment opportunities worldwide, broadly diversified across asset classes, countries and securities. Dennis Stattman Senior Portfolio Manager BlackRock Global Allocation Fund Eric Mitofsky Quantitative Analyst 26 years of industry experience Dennis Stattman, senior portfolio manager, has been with the fund since its inception in 989. Collectively, the BlackRock Global Allocation Fund team has more than 200 years of experience. Aldo Roldan Dennis Stattman Dan Chamby 5

6 A History of Proven Performance As the chart illustrates, since its inception in 989, the BlackRock Global Allocation Fund (Investor A shares) has outperformed its peer group, stocks, bonds and cash investments. While past performance is not a guarantee of future results, the fund s management team seeks to maximize high total return with relatively moderate levels of risk, by following a disciplined investment process. Please keep in mind that stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. The two main risks related to fixed income investing are interest rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the issuer of the bond will not be able to make principal and interest payments. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Investments in non-investmentgrade debt securities ( high-yield bonds or junk bonds ) may be subject to greater market fluctuations and risk of default loss of income and principal than securities in higher rating categories. Asset allocation strategies do not ensure profit and do not protect against loss. Short selling entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short sale proceeds in other investments. Sources: BlackRock; Lipper, Inc.; Bloomberg. * Based on a hypothetical investment of $00,000 in Investor A shares on 2/28/89 with an initial sales charge of 3%, resulting in a net investment of $97,000, and assuming reinvestment of all distributions. Performance for other share classes will vary. The actual inception date for Investor A shares is 0/2/94. Total returns for periods prior to Investor A inception are based on the fund s Institutional share returns, adjusted to reflect the higher A share fees. The inception date for the Institutional shares is 2/3/89. This information may be considered when assessing the fund s performance, but does not represent actual performance of the share class. Refer to footnotes on back cover for benchmark definitions. Proven Performance Throughout All Seasons (Growth of a Hypothetical $0 0,000 Inve $,000, , , , , , , , ,000 00,000 0 S&L Crisis BlackRock Global Allocation Fund: Investor A Shares* Lipper Global Flexible Category Average 5 Global Stocks (FTSE World Index) 6 Global Bonds (Citigroup World Government Bond Index) 7 Cash (90-Day T-Bills) 8 Gulf War Inception Date 2/3/ Performance data quoted represents past performance and does not guarantee future results. Current per 0-year periods depicted in the enclosed fund fact sheet. It is not possible to invest directly in an index. Sto Yearly Total Returns (%) Global Allocation Fund: A* Lipper Average Global Stocks Global Bonds Cash Historical Fund Asset Allocation (%) Equities Fixed Income Cash Equivalents Formation of EU Oklahoma City Bombing 6

7 stment From 2/28/89 to 2/3/08*) $736,074 $502,8 $424,50 Asian Stock Market Crisis Long-Term Capital Mgmt. Failure Peak of Technology Bubble September th War in Iraq Begins Subprime Loan Issues Global Credit Crisis $28,744 $24, formance may be lower or higher than performance data quoted. This illustration should be read along with the average annual total returns for the -, 5- and ck values fluctuate with market conditions. Bonds, if held to maturity, offer a fixed rate of return. T-bills are guaranteed by the US government. 7

8 Supplementing Retirement Income As part of a diversified portfolio, the BlackRock Global Allocation Fund offers investors an efficient way to save for retirement and other long-term goals. As illustrated below, a hypothetical investment of $500,000 in the BlackRock Global Allocation Fund (Investor A shares) on February 28, 989, yielded a steady stream of income by taking annual withdrawals of $30,000 (increased by 3% each year to compensate for inflation) and still grew substantially. The $500,000 hypothetical lump-sum investment yielded a total of $806, through annual withdrawals and still had an ending value of $,749,4 in December of Total Investment: $500,000 Total Withdrawals: $806, Ending Value: $,749,4 Access a Supplementary Income and Grow Your Retirement Assets Withdrawals Year Initial Investment on Dec. 3 Investment Value* This illustration should be read along with the average annual total returns for the -, 5- and 0-year periods depicted in the enclosed fund fact sheet. 2/28/89 $500,000 $490,000 2/3/89 $30,000 $535,068 2/3/90 $30,900 $52,836 2/3/9 $3,827 $626,808 2/3/92 $32,782 $668,679 2/3/93 $33,765 $773,398 2/3/94 $34,778 $72,99 2/3/95 $35,822 $854,322 2/3/96 $36,896 $953,775 2/3/97 $38,003 $,02,832 2/3/98 $39,43 $986,470 2/3/99 $40,37 $,26,74 2/3/00 $4,527 $,279,488 2/3/0 $42,773 $,260,770 2/3/02 $44,056 $,6,357 2/3/03 $45,378 $,472,644 2/3/04 $46,739 $,636,05 2/3/05 $48,4 $,756,94 2/3/06 $49,585 $,987,38 2/3/07 $5,073 $2,268,399 2/3/08 $52,605 $,749,4 Total value as of 2/3/08 $806, $,749,4 Sources: BlackRock; Lipper, Inc. Past performance does not guarantee future results. * Growth of a hypothetical $500,000 investment and assumed reinvestment of all distributions with yearly $30,000 (6%) withdrawals. Since the associated sales charge of 2% was taken out of the $500,000 up front, the net investment was $490,000. Returns for periods prior to Investor A inception (0/2/94) are based on the fund s Institutional share (inception: 2/3/89) returns adjusted to reflect the higher Investor A share fees. 8

9 Saving for College As a highly diversified core holding, the BlackRock Global Allocation Fund is an attractive option for a college savings plan. As illustrated in the table below, a hypothetical annual investment of $5,000 for 0 years to save for college and withdrawals of $30,000 annually for tuition to a 4-year college or university yielded a substantial investment that can potentially provide for other life events. Total Investment: $50,000 ($5,000 over a 0-year period) Total Withdrawals: $20,000 ($30,000 annually ) Ending Value: $04,240 Fund College Tuition and Grow Your Asset Base Over Time Initial Investment Withdrawals Investment Value Year Beginning of Year on Dec. 3 End of Year 989 $5,000*, $5, $5,000 $0, $5,000 $9, $5,000 $27, $5,000 $38, $5,000 $42, $5,000 $57, $5,000 $72, $5,000 $86, $5,000 $9, $6, $26, $28, $8, $60, $83, $30,000 $72, $30,000 $70, $30,000 $68, $30,000 $04,240 Total value as of 2/3/08 $50,000 $20,000 $04,240 Sources: BlackRock; Lipper, Inc. This illustration should be read along with the average annual total returns for the -, 5- and 0-year periods depicted in the enclosed fund fact sheet. Past performance does not guarantee future results. * Initial investment made on 2/28/89. Fund inception is 2/3/89. Since the sales charge of 5.25% (the maximum sales charge) was taken out of the $5,000 up front, the net investment was $4, Based on a hypothetical investment in Investor A shares and assumed reinvestment of all distributions. Returns for periods prior to Investor A inception (0/2/94) are based on the fund s Institutional share (inception 2/3/89) returns adjusted to reflect the higher Investor A share fees. Since the sales charge of 4.75% (reflecting the reduced sales charge for account values of $25,000 to $49,999) was taken out of the $5,000 up front, the net investment was $4, Since the sales charge of 4.00% (reflecting the reduced sales charge for account values of $50,000 to $99,999) was taken out of the $5,000 up front, the net investment was $4,800. 9

10 Why Invest in the BlackRock Global Allocation Fund? The BlackRock Global Allocation Fund offers a highly diversified core holding to help you achieve your long-term financial goals. The fund provides a: Portfolio for All Seasons Diversified among asset classes, sectors and regions, the BlackRock Global Allocation Fund can provide a simple solution for building the core of your investment portfolio to help you achieve your long-term goals. Unique Approach to Diversification Typically holding more than 700 securities, the fund is highly diversified by asset class, market capitalization, sector and region. Disciplined Management Team Led by senior portfolio manager Dennis Stattman, who has been with the fund since its inception in 989, the members of the investment team employ a disciplined investment process to determine the most appropriate overall asset, geographic and industry allocation strategies. History of Proven Performance In 2009, the BlackRock Global Allocation Fund celebrates its 20-year anniversary with a record of outperforming its peer group, stocks, bonds and cash investments over the long term. 0

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13 Talk to Your Financial Professional Today Talk to your financial professional today about making the BlackRock Global Allocation Fund the core of your investment portfolio. You can begin investing today in the BlackRock Global Allocation Fund with a minimum $,000 investment and subsequent purchases of $50 or more.

14 EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS About BlackRock BlackRock is a premier provider of global investment management, risk management and advisory services. The firm manages portfolios and provides investment solutions for a broad array of investors that includes corporate, public and union pension plans, insurance companies, mutual funds, endowments, foundations, charities, corporations, official institutions and individuals worldwide. We offer a unique blending of qualities that makes us a preferred choice among individual investors and financial professionals: Sharp investment minds Powerful investment technology Global perspective and connectivity Breadth of investment solutions Entrusted with billions by premier institutions The S&P 500 Index covers 500 industrial, utility, transportation and financial companies of the U.S. markets (mostly NYSE issues). The unmanaged index represents about 75% of NYSE market capitalization and 30% of NYSE issues. 2 The FTSE World Index ex-us is an unmanaged capitalization-weighted index comprised of,630 companies in 28 countries, excluding the United States. 3 The Merrill Lynch 5-Year US Treasury Bond Index is an unmanaged index designed to track the total return of the current coupon 5-Year US Treasury bond. 4 The Citigroup Non-USD World Government Bond Index (formerly the Salomon Brothers World Government Bond Index ex-us) is an unmanaged, market capitalization-weighted index that tracks 0 government bond indices, excluding the United States. 5 Lipper average returns are according to Lipper, Inc. Lipper Global Flexible Category Average classification consists of all funds tracked by Lipper that allocate their investments across various asset classes, including both domestic and foreign stocks, bonds and money market instruments, with a focus on total return. At least 25% of each fund is invested in securities traded outside the United States, including shares of gold mines, gold-oriented mining finance houses, gold coins or bullion. The average reflects the average total return performance of those funds that make up the investment classification and does not take sales charges into consideration. 6 Global stocks are represented by the FTSE World Index, which is a broad-based capitalization-weighted index comprised of 2,200 equities from 24 countries in 2 regions, including the United States. 7 Global bonds are represented by the Citigroup World Government Bond Index, which includes the most significant and liquid government bond markets globally that carry at least an investment-grade rating. Currently, this includes all countries in the Citigroup EMU Governments Index (EGBI) and Australia, Canada, Denmark, Japan, Sweden, Switzerland, United Kingdom and the United States. Index weights are based on the market capitalization of qualifying outstanding debt stocks. 8 Cash is represented by the ML US Treasury Bill 3-Month Index, which is an unmanaged index based on the value of a 3-month Treasury bill assumed to be purchased at the beginning of the month and rolled into another single issue at the end of the month. US Treasury securities are direct obligations of the US government and are backed by the full faith and credit of the US government if held to maturity. Indices are not available for direct investment. This brochure must be accompanied by the BlackRock Global Allocation Fund s most recent quarterly fund fact sheet. You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The fund s prospectus contains this and other information about the fund and is available, along with information about other BlackRock funds, by calling or from your financial professional. The prospectus should be read carefully before investing. Unless otherwise noted, all information contained herein is as of the date of the publication of this brochure. BLACKROCK is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners. FOR MORE INFORMATION Prepared by BlackRock Investments, Inc., member FINRA BlackRock, Inc. All Rights Reserved. F2745-6/2009 GA-BR-0609

15 EQUITIES FIXED INCOME REAL ESTATE LIQUIDITY ALTERNATIVES BLACKROCK SOLUTIONS Global Allocation Fund, Inc. JUNE 30, 2009 $0,000 Over Time Investor A 2/28/89-6/30/09 $00,000 $76,35 75,000 50,000 25,000 06/89 06/93 06/97 06/0 06/05 06/09 Based on a hypothetical investment of $0,000 in Investor A shares on 2/28/89 with an initial sales charge of 5.25%, resulting in a net investment of $9,475, and assumes reinvestment of dividends and capital gains. Performance for other share classes will vary. Fund operating expenses, including 2b- fees, management fees, distribution fees and other expenses, were deducted. Returns for periods prior to Investor A inception is based on the fund's Institutional returns, adjusted to reflect the higher Investor A fees. Performance Analysis % Average Annual Total Returns (6/30/09) Without Sales Charge Investor A Investor B* Investor C Institutional Class R Year Years Years Years With Sales Charge Investor A Investor B* Investor C Lipper Avg FTSE World Citigroup World Gov't Bond Internal Ref. Benchmark % Calendar Year Returns (Fund Performance Without Sales Charges) Investor A Investor B* Investor C Institutional Class R Lipper Avg. 3 FTSE World 4 Citigroup World Gov't Bond 5 Internal Ref. Benchmark Year-to-Date Since Inception Q Data represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so an investor s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown. All returns assume reinvestment of dividends and capital gains distributions. Refer to for performance current to the most recent month-end. The share classes have different sales charges, ongoing account maintenance and distribution fees and other features. Average annual total returns with sales charge reflect the deduction of current maximum initial sales charge of 5.25% for Inv. A shares and applicable contingent deferred sales charges (CDSC) for Inv. B and Inv. C shares. The maximum CDSC of 4.5% for B shares is reduced to 0% after 6 years. B share performance reflects conversion to A shares after 8 years. The maximum CDSC of % for C shares is reduced to 0% after year. Institutional and Class R shares have no front- or back-end load. Inception date and restated performance for R shares are based on Institutional shares. See footnote 2 for explanation. Ticker Symbols Investor A: MDLOX Investor C: MCLOX Class R: MRLOX Lipper Classification 3 Global Flexible Portfolio Funds Investor B: MBLOX* Institutional: MALOX Overall Morningstar Rating Investor A Rated against 37 World Allocation Funds, as of 6/30/09 based on risk-adjusted total return. Ratings are determined monthly and subject to change. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 0-year (if applicable) Morningstar Rating metrics. Objective Seeks to provide high total return. Strategy A fully managed investment policy using US and foreign equity and debt and money-market securities for high total investment return, varying investments by type and market depending on changing market and economic trends. Portfolio Statistics Inception Date Number of Stocks Weighted Avg. Mkt. Cap Size of Fund Dividend Frequency Portfolio Management Dennis Stattman Dan Chamby Aldo Roldan, PhD Fund 2/3/ $52.8 B $27.5 B Semi-Annual Benchmark 4 $5.7 B Annual Fund Operating Expenses (% of Fund Assets) Total/net annual operating expenses as stated in this fund's most recent prospectus are: Investor A,.22/.2; Investor B, 2.03/.92; Investor C,.98/.88; Institutional, 0.97/0.86; Class R,.57/.46. The fund's net operating expenses exclude investment interest expenses, acquired fund fees, if any, and certain other fund expenses net of all waivers and reimbursements. BlackRock has voluntarily agreed to waive certain fees and expenses. BlackRock may discontinue these voluntary waivers at any time without notice. *Investor B shares are generally not available for purchase, except for exchanges and certain other exceptions. Please see the fund s prospectus for further details. NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE

16 Lipper Rankings (6/30/09) 3 Investor A Investor B Investor C Institutional Lipper Category 3 Year out of 0 3 Year out of 59 5 Year out of 35 0 Year out of 2 Year Quartile Ranking 3 Year 5 Year 0 Year 2 2 Lipper Category: Global Flexible Portfolio Funds. All share classes of the fund are invested in a common portfolio. Lipper rankings are based on total return excluding sales charges. Data shown represents past performance and is not an indication of future results. 3 Geographic Allocation (% of Net Assets) North America 43.9 Cash & Cash Equivalents 3.7 Risk Measures (3-year) 7 Standard Deviation Beta vs. Benchmark R-Squared vs. Benchmark Sharpe Ratio Asset Mix (% of Net Assets) Fund 2.86% % Benchmark %.00 International Stocks 24. US Stocks 28.6 International Bonds 20.8 US Bonds 2.8 Cash & Cash Equivalents* Africa/Middle East.8 Asia 23.0 Europe 4. Latin America 3.5 * Actively managed as part of the fund's investment strategy. Can be considered as "Zero Duration Fixed- Income," and includes US dollar and non-us dollar short-term securities and other money-market type instruments. Important Risks of the Fund: Data as of date noted. The fund is actively managed and its characteristics will vary. Any holdings shown are for information only and should not be deemed as a recommendation to buy or sell the securities mentioned. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. The two main risks related to fixed-income investing are interest-rate risk and credit risk. Typically, when interest rates rise, there is a corresponding decline in the market value of bonds. Credit risk refers to the possibility that the bond issuer will not be able to make principal and interest payments. International investing involves risks, including risks related to foreign currency, limited liquidity, less government regulation and the possibility of substantial volatility due to adverse political, economic or other developments. Investments in non-investment-grade debt securities ( high-yield or junk bonds) may be subject to greater market fluctuations and risk of default or loss of income and principal than securities in higher rating categories. Asset allocation strategies do not assure profit and do not protect against loss. The fund may actively engage in short-selling, which entails special risks. If the fund makes short sales in securities that increase in value, the fund will lose value. Any loss on short positions may or may not be offset by investing short-sale proceeds in other investments. Investing in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The fund's prospectus contains this and other information about the fund and is available, along with information on other BlackRock funds, by calling or from your financial professional. The prospectus should be read carefully before investing. Unless otherwise noted, all information contained herein is as of the date of publication of this fact sheet. Institutional and Class R shares are sold to a limited group of investors, including certain retirement plans. Institutional shares also are sold to certain investment programs. The fund may charge a 2% redemption fee for sales or exchanges of shares made within 30 days of purchase. Performance does not reflect this potential fee. See prospectus for details. 2 Before /3/03, Class R share performance is that of Institutional shares (which have no distribution fees) restated for Class R share distribution fees. Performance for Class R shares after their inception date reflects actual class performance. Performance for Investor A and C shares before their introduction (0/2/94) is based on Institutional share performance adjusted to reflect class-specific fees applicable to Investor A and C shares at the time of their launch. This information may be considered when assessing fund performance, but does not represent actual performance of those share classes. 3 Lipper funds' average returns and rankings are according to Lipper, Inc. Lipper Global Flexible Portfolio Funds classification consists of all funds tracked by Lipper that allocate their investments across various asset classes, including domestic and foreign stocks, bonds and money market instruments, with a focus on total return. Lipper Global Flexible Portfolio Funds Average and Lipper rankings reflect total return performance of funds excluding sales charges. 4 The broad-based capitalization-weighted FTSE World Index comprises 2,200 equities from 24 countries in 2 regions, including the United States. It is not possible to invest directly in an index. 5 The Citigroup World Government Bond Index includes the most significant and liquid government bond markets globally with at least an investment-grade rating. Currently, this includes all countries in the Citigroup EMU Governments Index (EGBI) and Australia, Canada, Denmark, Japan, Sweden, Switzerland, United Kingdom and the United States. Index weights are based on the market capitalization of qualifying outstanding debt stocks. 6 The Internal Reference Benchmark is 36% S&P 500 Index, 24% FTSE World (ex-us), 24% Merrill Lynch 5-year US Treasury Bond Index and 6% Citigroup Non-US Dollar World Government Bond Index. The unmanaged S&P 500 Index covers 500 industrial, utility, transportation and financial companies of the US markets (mostly NYSE issues). It represents about 75% of NYSE market capitalization and 30% of NYSE issues. The unmanaged, capitalization-weighted FTSE World Index (ex-us) Index comprises,630 companies in 28 countries, excluding the United States. The unmanaged ML 5-year US Treasury Bond Index tracks the total return of the current coupon 5-year US Treasury bond. The unmanaged, market-capitalization-weighted Citigroup Non-US Dollar World Government Bond Index tracks 0 government bond indices, excluding the United States. 7 Risk statistics, if any, are measured based on Investor A class monthly returns for the 3-year period at quarter-end. These measures of past risk are not complete or, necessarily, representative measures of future risk and cannot predict a fund's performance. Benchmark-related risk measures are calculated in relation to the FTSE World Index. Standard deviation is a statistical measure of the volatility of the fund's returns. The Sharpe ratio uses a fund's standard deviation and its excess return (the difference between the fund's return and the risk-free return of 90-day Treasury Bills) to determine reward per unit of risk. Beta is a measure of a fund's sensitivity to market movements. A portfolio with a beta greater than is more volatile than the market and a portfolio with a beta less than is less volatile than the market. R-squared reflects the percentage of a fund's movements that are explained by movements in its benchmark index, showing the degree of correlation between the fund and the benchmark. This figure also is helpful in assessing how likely it is that beta is statistically significant. For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 0% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 0% receive star (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages). BlackRock Global Allocation Fund was rated against the following numbers of US-domiciled World Allocation funds over the following time periods: 37 in the last 3 years, 99 in the last 5 years and 56 in the last 0 years. With respect to these World Allocation funds, BlackRock Global Allocation Fund received a Morningstar Rating of 4, 4 and 4 stars for the 3-, 5- and 0-year periods, respectively. Morningstar Rating is for the Investor A share class only; other classes may have different performance characteristics Morningstar, Inc. All rights reserved. FOR MORE INFORMATION: BlackRock, Inc. All Rights Reserved. Prepared by BlackRock Investments, LLC, member FINRA. BLACKROCK is a registered trademark of BlackRock, Inc. All other trademarks are the property of their respective owners. 07/09 - Global Allocation Fund, Inc. MDLOX-0609