BlackRock Fund Ad: Once Thought Safe Now Risky? Rethink Bonds

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Find the investing review of Once Thought Safe Now Risk? Rethink your bonds, a BlackRock ad. You can find this ad at recent financial newspaper or magazine.

BlackRock Ad

BlackRock Ad: Rethink Bonds
Source: Barron's
If you read financial newspaper, you will notice a BlackRock ad about bond investment. I find this BlackRock ad about “Once Thought Safe Now Risk? Rethink your bonds” in Barron’s page 4 on August 19, 2013. The ad provides 1 mutual fund for consideration. You can invest in your financial account such as retirement account, brokerage account, or 401(k) account.

Whether it is the right choice for your investment account, you should do research and study about this mutual fund. I have provided the fund review below. Please do check the fund prospectus and fund summary profile to understand more about this BlackRock mutual fund.

The ad is as follow:
Once Thought Safe Now Risky? Rethink your Bonds.
The traditional bond funds you once considered safe investments may not be so safe anymore. Yields today are near record lows. Your income stream has slowed to a trickle. Many investments–like U.S. treasuries–aren’t even keeping pace with inflation. And if interest rates rise or inflation picks up, these once low-risk bonds could do something they’ve rarely done in 30 years–lose you money.
“So what do I do with my money?” BlackRock can help you seek out income and returns, no matter the climate. The BlackRock Strategic Income Opportunities Fund (BASIX) is
an “all-weather” approach that looks across the entire bond market for income and growth. Rather than remain narrowly focused, it can move freely in search of the best income opportunities–from a broader range of investments–and adapt as markets change. 
It’s time to be an investor again. 
Talk to your financial advisor about how BlackRock and iShares can help you or visit BlackRock.com/SIO 
BlackRock | Investing for A New World 
Call 1-855-BLK-8880 for more information. Visit blackrock.com or contact your financial professional for a prospectus or summary prospectus…

BlackRock Mutual Fund

If you are a fan of above return mutual fund, BlackRock Strategic Income Opportunities Fund (BASIX) can be your choice. This BlackRock mutual fund has a sales load of 4%. The expense ratio is 0.90%. It uses its assets to purchase a portfolio of fixed income securities. It may invest in high yield securities, international securities, emerging markets debt and mortgages. This nontraditional bond mutual fund objective is to provide total return with consistent capital preservation.

Managed by Rick Reider and Bob Miller, this BlackRock Strategic Income Opportunities Fund has a 5 year annualized return of 6.10%. It managed to beat its benchmark and it is ranked at 34 percentile in its category (5 years). Morningstar has ranked it with 3 stars rating. Its yield is 3.05%.

As of August 2013, the top 5 sectors are securitized (45%), cash & equivalent (24%), government (17%), corporate bond (13%), and municipal (0.63%). The fund risk is considered as average. The current shares price is $9.99. The minimum initial investment is only $1,000. You can invest in your various financial accounts such as brokerage account, traditional IRA, Roth IRA, and 401(k) account.

You can also invest in other classes of this fund such as:
  • Class Inv A with load waived (BASIX.LW) – It has no sales load.
  • Class Inv C (BSICX) – It has a sales load 1%, expense fee of 1.65%.
  • Institutional Class (BSIIX) – It has no sales load, and it has low expense of 0.65%.

Bottom Line

  • The class A fund has a sales load and it is not attractive for long term investment
  • If you interested in nontraditional bond investing, this fund may provide alternative choice for your investment.
  • Invest only in the no sales load fund hence it may enhance your return.

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