Global Allocation Fund

October 2019

Global Allocation Fund

NOT FDIC INSURED ? MAY LOSE VALUE ? NO GUARANTEE MASM1019U-977085-1/30

It's not how much you make, it's how much you keep

U.S. stocks: All the up-all the down

12/31/18 $240K

Half the up-half the down*

12/31/18 $245K

3/24/00 $100K

10/9/07 $117K

+121%

-47%

-55%

+355%

$53K 10/9/02

$53K 3/9/09

+178%

3/24/00 $100K

+61%

-24%

$76K 10/9/02

10/9/07 $122K

-28% $88K

3/9/09

Performance data quoted represents past performance and does not guarantee future results. As of December 31, 2018. Source: BlackRock, Bloomberg. For illustrative purposes only. It is not possible to invest directly in an index. U.S. stocks are represented by the S&P 500 Index. *Half the up-half the down illustration captures 50% of bull markets and 50% of bear markets relative to the S&P 500 Index.

MASM1019U-977085-2/30 2

The math behind the impact of losses

1000% 900% 800% 700% 600% 500% 400% 300% 200% 100% 0% -100%

Return needed to breakeven

11%

25%

43%

-10%

-20%

Investment loss

-30%

67% -40%

900%

100%

150%

400% 233%

-50%

-60%

-70%

-80%

-90%

Source: BlackRock, Crestmont Research (). For illustrative purpose only. Hypothetical example.

MASM1019U-977085-3/30 3

S&P Envy: Diversification can feel disappointing

? The U.S. stock market has delivered positive performance in 14 of the last 16 calendar years

? Clients fail to understand why a diversified portfolio makes sense when it loses money in a bear market and trails in a bull market

? In an extended bull market, this can leave clients feeling envious towards the stock market

Years

S&P 500

Diversified Portfolio*

BlackRock Global Allocation Fund

2000-2002

-37.6%

-16.3%

"I lost money"

+2.6%

2003-2007

+82.9%

+73.8%

"I didn't make as much"

+134.9%

2008

-37.0%

-24.0%

"I lost money"

-20.4%

2009-2017

+243.0%

+152.2%

"I didn't make as much"

+96.6%

2018 Total Return

-4.4% +146.6%

-4.6%

+166.1%

"I lost MORE money"

"Diversification wins even when it feels like it's losing"

-7.4% +249.8%

Performance data quoted represents past performance and does not guarantee future results. As of December 31, 2018. Source: Morningstar. The performance depicted above is for the BlackRock Global Allocation Fund (Institutional). Returns are net of fees and include reinvestment of dividends and capital gains. Other classes of shares with differing fees and expenses are available. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. U.S. stock market represented by the S&P 500 Index. * Diversified Portfolio is represented by 40% S&P 500 Index, 15% MSCI EAFE Index, 5% Russell 2000 Index, 30% Bloomberg Barclays U.S. Aggregate Bond Index, and 10% Bloomberg Barclays U.S. Corporate High Yield Index.

MASM1019U-977085-4/30 4

GA_A

It's not how much you make, it's how much you keep (part 2)

U.S. stocks: All the up-all the down

12/31/18 $240K

Global Allocation Fund (A)

12/31/18 $332K

10/9/07 $231K

+105%

3/24/00 $100K

10/9/07 $117K

+121%

-47%

-55%

+355%

+162%

3/24/00 $100K

-12% $88K

10/9/02

-30%

$162K 3/9/09

$53K 10/9/02

$53K 3/9/09

Performance data quoted represents past performance and does not guarantee future results. As of December 31, 2018. Source: BlackRock, Bloomberg. The performance depicted above is for the BlackRock Global Allocation Fund (Investor A) at NAV. Had sales charges been included, the returns would have been lower. Performance, fees and rankings for other share classes could be higher or lower. Returns are net of fees and include reinvestment of dividends and capital gains. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an index. U.S. stocks represented by the S&P 500 Index.

MASM1019U-977085-5/30 5

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download