Summary

• The fund posted a return of -0.20% (Class I shares) for the first quarter of 2026.
• Structured products, selection among agency mortgage-backed securities (MBS), and U.S. investment grade credit sector allocation contributed to performance, while U.S. rates, emerging market debt, and European credit detracted.
• The fund's overweight exposure to duration was reduced, with positioning concentrated in the front end of the yield curve.
• BlackRock maintained a U.S. steepening bias, favoring the front end of the yield curve given the view that the Federal Reserve could decrease rates by more than investors expect.
• BlackRock adopted a more defensive posture across spread sectors amid elevated macroeconomic uncertainty, maintaining flexibility to redeploy capital at attractive entry points.

• The fund posted a return of -0.20% ((Class I shares)) for the first quarter of 2026.

• Structured products, selection among agency mortgage-backed securities (MBS), and U.S. investment grade credit sector allocation contributed to performance, while U.S. rates, emerging market debt, and