MUTUAL FUNDS

What's in a LifePath® Fund?

Like many mutual funds, LifePath funds are made up of stock funds, bond funds, index funds and money market funds or cash equivalents. The chart below shows the funds BlackRock Fund Advisors (BFA) uses to manage the LifePath funds.1

The mix of these asset classes in each LifePath Fund will depend on the risk and return objectives of the Fund.

Domestic Stocks Real Estate
Active Stock Master Portfolio iShares Cohen & Steers REIT ETF
Russell 1000 Index Master Portfolio iShares International Developed Real Estate ETF
SmallCap Index Master Portfolio

International Stocks Bonds
International TILTS Master Portfolio CoreAlpha Bond Master Portfolio
iShares MSCI EAFE Small-Cap ETF iShares TIPS Bond ETF
BlackRock Emerging Markets Fund; Institutional Shares
iShares MSCI Canada ETF

Commodities Money Market
BlackRock Commodity Strategies Fund BlackRock Cash Funds: Institutional; SL Agency Shares

1 These securities are held in the Master Portfolio. It is not possible to invest directly in an index.

Risk Disclosures

Investing involves risk, including potential for loss.

LifePath Funds are target-date portfolios whose investment objectives are adjusted over time to be more conservative as the target date (date the investor plans to start withdrawing their funds) approaches. The principal value of the fund(s) is not guaranteed at any time, including at the target date.

An investment in the Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.

The LifePath Funds invest a portion of their assets in equity securities. Risks of investing in equity securities include the risk that the financial condition of the issuers of the securities in the portfolio, or the condition of the stock market in general, may decline.

The LifePath Funds invest a portion of their assets in smaller capitalization companies. The stocks of small companies are more volatile than the stocks of larger, more established companies.

The LifePath Funds invest a portion of their assets in stocks and bonds of foreign companies. Foreign investments involve greater risks than U.S. investments, including political and economic risks and the risk of currency fluctuations.

The LifePath Funds invest a portion of their assets in Emerging Markets. Emerging markets involve greater risk than U.S. investments due to lower trading volume, political and economic instability, and other governmental limitations on foreign investment policy.

The LifePath Funds invest a portion of their assets in the securities of other investment companies (including money market funds), and certain of the Underlying Funds may invest in real estate investment trusts ("REITs") to the extent allowed by law.

The LifePath Funds invest a portion of their assets in commodities. Commodities are assets that have tangible properties, such as oil and other energy products, metals, and agricultural products. Commodity-linked derivative instruments include, but are not limited to, commodity-linked notes, swap agreements, commodity options, futures and options on futures, that provide exposure to the investment returns of the commodities markets, without investing directly in physical commodities.

The LifePath Funds invest a portion of their assets in debt securities. Risks of investing in debt securities include the risk that the financial condition of the issuers of the securities in the portfolio, or the condition of the bond market in general, may decline. Varying economic and market conditions may affect the value of, and yields on, the debt securities the fund holds. There may also be changes in the issuer's ability to make timely interest and principal payments. The market prices of debt securities generally move inversely to changes in the interest rates. Therefore, the fund's net asset value can be expected to rise when interest rates decline and decline when interest rates rise. Mortgage-backed securities tend not to move in this same manner, as homeowners prepayment of their mortgage obligations generally accelerates during a period of falling interest rates, which can affect the prices of the mortgage securities the fund holds.

The LifePath Funds invest a portion of their assets almost exclusively in inflation-protected public obligations of the U.S. Treasury, commonly known as "TIPS." TIPS are a type of U.S. government obligation issued by the U.S. Treasury that are designed to provide inflation protection to investors.

AP2014/04/0932

Not FDIC Insured

  • No Bank Guarantee
  • May Lose Value