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Shareholder® Magazine

We are pleased to present the online version of the magazine created specifically for mutual fund shareholders. This Web-based resource offers insights beyond those available in the pages of our printed magazine via links to complementary content on blackrock.com, including access to Shareholder Perspectives, a quarterly newsletter featuring news and views from BlackRock portfolio managers. Since 2003, we have been bringing shareholders information and perspectives from our own professional investors. Today, we invite you to explore the virtual pages of Shareholder magazine as we continue our quest to provide an online experience rich in investment insight and education.


Confronting Your Financial Fears

Battered by the severe market losses of 2008 and still reeling from the worst economic recession in the post-WWII era, it's no surprise that investors may be treading lightly back into markets. While risks remain, sitting on the sidelines also can come at a cost ? an opportunity cost. Equities, for example, rebounded roughly 50% between March and September. In Investor Introspection, senior BlackRock investment professionals discuss their views on the economy, markets and investment opportunities arising out of recovery. They also look back and venture forward with some of the key Lessons Learned from the crisis. For more on this topic, refer to Senior Portfolio Manager Tom Callan's Point of View commentary, Moving Forward, Guided by History.


Inflation: Low Now, But Looming Large?

Inflation is low right now, and probably will remain so for some time. However, we know from past cycles that fiscal and monetary stimulus can result in rising inflation down the road. This time around, given the severity of the financial and economic crises, the stimulus measures have been monumental. While the response has been critical to getting the economy back on its feet, what can this mean for inflation? And how can investors cushion their portfolios from inflation's inevitable bite? Read Inflation's Next Move and the complementary article in Shareholder Perspectives Ahead of the Curve: Planning for Inflation.


High Time for High Yield?

In times of recession, the historic record shows that high yield bonds have strongly outperformed equities. And in periods of slight recovery, when the market is beginning to turn upward, they've at least paced equities. James Keenan, Portfolio Manager and Head of BlackRock's Leveraged Finance Group, believes high yield bonds and leveraged loans can be a good proxy for equities and, particularly in the case of loans, we may be approaching an investment "sweet spot." See Mr. Keenan's Viewpoint on High Yield.

2008 Silver Spotlight Award and 2008 Star Awards

Investment involves risks. Stock and bond values fluctuate in price so the value of an investment can go up or 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. 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.

For a current prospectus of any BlackRock mutual fund, which contains more complete information, please call your financial professional or BlackRock at 800-882-0052. Before investing, consider the investment objectives, risks, charges and expenses of the fund(s) under consideration. This and other information can be found in each fund's prospectus. Read each prospectus carefully before you invest.

This material is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. The opinions expressed are those of the BlackRock investment professionals profiled as of November 1, 2009, and may change as subsequent conditions vary. Individual portfolio managers for BlackRock may have opinions and/or make investment decisions that, in certain respects, may not be consistent with the information contained in this report. The information and opinions contained in this material 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. Past performance is no guarantee of future results. There is no guarantee that any forecasts made will come to pass. Reliance upon information in this material is at the sole discretion of the reader.

Shareholder, published by BlackRock, Inc., is designed to provide general information about investing. It is not intended to offer specific investment recommendations. Investing involves risk. You should contact your financial professional about your particular situation before making important investment decisions. Contact your financial professional about BlackRock products.

BLACKROCK is a registered trademark and SHAREHOLDER is a registered service mark of BlackRock, Inc. All other trademarks are the property of their respective owners.

Prepared by BlackRock Investments, LLC, member FINRA.