BlackRock Funds
SM
| Investor
and Institutional Shares
> BlackRock Global Long/Short Credit
Fund
Fund
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Investor A
Shares
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Investor C
Shares
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Institutional
Shares
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BlackRock Global Long/Short Credit Fund
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BGCAX
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BGCCX
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BGCIX
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Before you invest, you may want to review the Funds
prospectus, which contains more information about the Fund and its risks. You can find the Funds prospectus (including amendments and
supplements) and other information about the Fund, including the Funds statement of additional information and shareholder report, online at
http://www.blackrock.com/prospectus. You can also get this information at no cost by calling (800) 441-7762 or by sending an e-mail request to
prospectus.request@blackrock.com
, or from your financial professional. The Funds prospectus and statement of additional information, both
dated November 28, 2012, as amended and supplemented from time to time, are incorporated by reference into (legally made a part of) this Summary
Prospectus.
This Summary Prospectus contains information you should know
before investing, including information about risks. Please read it before you invest and keep it for future reference.
The Securities and Exchange Commission has not approved or
disapproved these securities or passed upon the accuracy or adequacy of this Summary Prospectus. Any representation to the contrary is a criminal
offense.
Not FDIC Insured No Bank Guarantee May Lose Value
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Summary Prospectus
Key Facts About BlackRock Global Long/Short Credit
Fund
The investment objective of BlackRock Global Long/Short Credit
Fund (the Fund), a series of BlackRock Funds
SM
(the Trust), is to seek absolute total returns over a complete market
cycle.
Fees and Expenses of the
Fund
This table describes the fees and expenses that you may pay if you
buy and hold shares of the Fund. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least
$25,000 in the fund complex advised by BlackRock Advisors, LLC (BlackRock). More information about these and other discounts is available
from your financial professional and in the Details About the Share Classes section on page 26 of the Funds prospectus and in the
Purchase of Shares section on page II-71 of the Funds statement of additional information (the SAI).
Shareholder Fees
(fees paid directly
from your investment)
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Investor A
Shares
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Investor C
Shares
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Institutional
Shares
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Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price)
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4.00
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%
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None
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None
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Maximum Deferred Sales Charge (Load) (as a percentage of
offering price or redemption proceeds,
whichever is lower)
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None
1
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1.00
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%
2
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None
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Annual Fund Operating
Expenses
(expenses that you pay each year as a
percentage of the value of your investment)
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Investor A
Shares
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Investor C
Shares
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Institutional
Shares
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Management Fee
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0.95
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%
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0.95
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%
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0.95
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%
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Distribution and/or Service (12b-1) Fees
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0.25
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%
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1.00
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%
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None
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Other Expenses
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0.73
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%
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0.71
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%
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0.78
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%
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Interest Expense
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0.26%
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0.26%
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0.26%
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Miscellaneous Other Expenses
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0.47%
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0.45%
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0.52%
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Acquired Fund Fees and Expenses
3
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0.11
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%
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0.11
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%
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0.11
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%
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Total Annual Fund Operating Expenses
3
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2.04
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%
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2.77
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%
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1.84
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%
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Fee Waivers and/or Expense Reimbursements
4
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(0.27
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)%
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(0.25
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)%
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(0.27
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)%
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Total Annual Fund Operating Expenses After Fee Waivers
and/or Expense
Reimbursements
4
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1.77
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%
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2.52
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%
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1.57
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%
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1
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A contingent deferred sales charge
(CDSC) of 0.75% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge
was paid at time of purchase as part of an investment of $1,000,000 or more.
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2
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There is no CDSC on Investor C Shares after one
year.
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3
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The Total Annual Fund Operating Expenses do not
correlate to the ratios of expenses to average net assets given in the Funds annual report, which do not include Acquired Fund Fees and
Expenses.
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As described in the Management of the
Fund section of the Funds prospectus on pages 40-44, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order
to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired
Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 1.40% (for Investor A Shares), 2.15% (for
Investor C Shares) and 1.20% (for Institutional Shares) until December 1, 2013. The Fund may have to repay some of these waivers and reimbursements to
BlackRock in the following two years. The agreement may be terminated upon 90 days notice by a majority of the non-interested trustees of the
Trust or by a vote of a majority of the outstanding voting securities of the Fund.
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2
Example:
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated
and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the
Funds operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would
be:
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1 Year
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3 Years
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5 Years
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10 Years
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Investor A Shares
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$
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573
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$
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989
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$
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1,430
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$
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2,653
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Investor C Shares
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$
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355
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$
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836
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$
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1,442
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$
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3,081
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Institutional Shares
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$
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160
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$
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552
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$
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970
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$
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2,136
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You would pay the following expenses if you did not redeem your
shares:
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1 Year
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3 Years
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5 Years
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10 Years
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Investor C Shares
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$
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255
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$
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836
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$
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1,442
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$
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3,081
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Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or turns over its portfolio). A higher portfolio turnover may indicate higher transaction costs and may result in
higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example,
affect the Funds performance. For the period September 30, 2011 (commencement of operations) through July 31, 2012, the Funds portfolio
turnover rate was 355% of the average value of its portfolio.
Principal Investment Strategies
of the Fund
The Fund seeks to provide absolute total returns over a complete
market cycle through diversified long and short exposure to the global fixed income markets. A complete market cycle for fixed income funds such as the
Fund is typically three to five years.
Under normal circumstances, the Fund invests at least 80% of its
total assets in credit-related instruments, including, but not limited to, U.S. Government and agency securities, foreign government and supranational
debt securities, corporate bonds, including bonds of companies principally engaged in the aircraft or air transportation industries, mortgage-related
securities and asset-backed securities, collateralized debt and loan obligations, including bonds collateralized by aircraft and/or aircraft equipment,
emerging market debt securities, preferred securities, structured products, mezzanine securities, senior secured floating rate and fixed rate loans or
debt, second lien or other subordinated or unsecured floating rate and fixed rate loans or debt, convertible debt securities, and derivatives with
similar economic characteristics. The Fund may invest in fixed, variable and floating rate instruments, including participations and assignments, of
any duration or maturity.
Under normal circumstances, the Fund anticipates it will allocate
a substantial amount (approximately 40% or more, unless market conditions are not deemed favorable by BlackRock, in which case the Fund would invest at
least 30%) of its total assets in securities (or derivatives with similar economic characteristics) of (i) foreign government issuers, (ii) issuers
organized or located outside the U.S., (iii) issuers whose securities primarily trade in a market located outside the U.S., or (iv) issuers doing a
substantial amount of business outside the U.S., which the Fund considers to be companies that derive at least 50% of their revenue or profits from
business outside the U.S. or have at least 50% of their sales or assets outside the U.S. The Fund will allocate its assets among various regions and
countries, including the United States (but in no less than three different countries).
The Fund may invest in credit-related instruments rated below
investment grade or deemed equivalent by Fund management, which are commonly referred to as junk bonds.
Generally, the Funds average maturity is expected to be less
than 6 years.
The Fund may invest in non-U.S. dollar denominated investments
including investments denominated in European and Asian currencies and in other non-U.S. and emerging market currencies. The Funds investments in
non-U.S. dollar based assets may be made on a currency hedged or unhedged basis.
The Fund may invest up to 20% of its total assets in equity
instruments, including common stock, depositary receipts, rights, warrants and other instruments whose price is linked to the value of common stock.
The Fund may hold long or short positions in equity instruments, and may invest in equity instruments of issuers of any market
capitalization.
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The Fund may also gain both long and short exposure to
credit-related instruments by entering into a series of purchase and sale contracts or by investing in, among other instruments, swaps, including total
return, credit default, index and interest rate swaps; options; forward contracts; futures contracts and options on futures contracts that provide long
or short exposure to other credit obligations; credit-linked notes that provide long or short exposure to other credit obligations; repurchase
agreements; reverse repurchase agreements; dollar rolls; exchange-traded funds and closed-end registered investment companies, which may be managed by
BlackRock or one of its affiliates; and other similar transactions.
The Fund may engage in short sales for hedging purposes or to
enhance total return. The Fund also may make short sales against the box without limitation. In this type of short sale, at the time of the
sale, the Fund owns or has the immediate and unconditional right to acquire the identical security at no additional cost.
As part of its normal operations, the Fund may hold high quality
money market securities and invest in money market funds, including affiliated money market funds, pending investments or when it expects to need cash
to pay redeeming shareholders. The Fund also may invest in these securities in order to achieve its investment goal. Money market securities are short
term securities consisting primarily of short term U.S. Government securities, U.S. Government agency securities, securities issued by U.S. Government
sponsored enterprises and U.S. Government instrumentalities, bank obligations, commercial paper, including asset backed commercial paper, corporate
notes and repurchase agreements.
The Fund may engage in active and frequent trading of portfolio
securities to achieve its primary investment strategies.
The Fund may borrow from banks for investment
purposes.
Principal Risks of Investing in
the Fund
Risk is inherent in all investing. The value of your investment in
the Fund, as well as the amount of return you receive on your investment, may fluctuate significantly from day to day and over time. You may lose part
or all of your investment in the Fund or your investment may not perform as well as other similar investments. The following is a summary description
of certain risks of investing in the Fund.
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Air Transportation Industry Risks
The air
transportation industry can be significantly affected by competition within the industry, domestic and foreign economies, government regulation, labor
relations, and the price of fuel. Airline deregulation has substantially diminished the governments role in the air transport industry while
promoting an increased level of competition. However, regulations and policies of various domestic and foreign governments can still affect the
profitability of individual carriers as well as the entire industry.
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Borrowing Risk
Borrowing may exaggerate
changes in the net asset value of Fund shares and in the return on the Funds portfolio. Borrowing will cost the Fund interest expense and other
fees. The costs of borrowing may reduce the Funds return. Borrowing may cause the Fund to liquidate positions when it may not be advantageous to
do so to satisfy its obligations.
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Collateralized Debt Obligations Risks
Collateralized debt obligations are subject to credit, interest rate, valuation, prepayment and extension risks. These securities also are subject to
risk of default on the underlying asset, particularly during periods of economic downturn.
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Convertible Securities Risk
The market value
of a convertible security performs like that of a regular debt security; that is, if market interest rates rise, the value of a convertible security
usually falls. In addition,
convertible securities are subject to the risk that the issuer will not be able to pay interest or dividends when due,
and their market value may change based on changes in the issuers credit rating or the markets perception of the issuers
creditworthiness. Since it derives a portion of its value from the common stock into which it may be converted, a convertible security is also subject
to the same types of market and issuer risk as apply to the underlying common stock.
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Corporate Loans Risk
Commercial banks and
other financial institutions or institutional investors make corporate loans to companies that need capital to grow or restructure. Borrowers generally
pay interest on corporate loans at rates that change in response to changes in market interest rates such as the London Interbank Offered Rate
(LIBOR) or the prime rates of U.S. banks. As a result, the value of corporate loan investments is generally less exposed to the adverse
effects of shifts in market interest rates than investments that pay a fixed rate of interest. The market for corporate loans may be subject to
irregular trading activity, wide bid/ask spreads and extended trade settlement periods. The corporate loans in which the Fund invests are usually rated
below investment grade.
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Credit Risk
Credit risk refers to the
possibility that the issuer of a security will not be able to make payments of interest and principal when due. Changes in an issuers credit
rating or the markets perception of an issuers creditworthiness may also affect the value of the Funds investment in that
issuer.
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Derivatives Risk
The Funds use of
derivatives may reduce the Funds returns and/or increase volatility. Volatility is defined as the characteristic of a security, an index or a
market to fluctuate significantly in price within a short time period. Derivatives are also subject to counterparty risk, which is the risk that the
other party in the transaction will not fulfill its contractual obligation. A risk of the Funds use of derivatives is that the fluctuations in
their values may not correlate perfectly with the overall securities markets. The possible lack of a liquid secondary market for derivatives and the
resulting inability of the Fund to sell or otherwise close a derivatives position could expose the Fund to losses and could make derivatives more
difficult for the Fund to value accurately. Derivatives may give rise to a form of leverage and may expose the Fund to greater risk and increase its
costs. Recent legislation calls for new regulation of the derivatives markets. The extent and impact of the regulation is not yet known and may not be
known for some time. New regulation may make derivatives more costly, may limit the availability of derivatives, or may otherwise adversely affect the
value or performance of derivatives.
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Risks Specific to Certain Derivatives
Used by the Fund
Swaps Swap agreements involve the
risk that the party with whom the Fund has entered into the swap will default on its obligation to pay the Fund and the risk that the Fund will not be
able to meet its obligations to pay the other party to the agreement.
Credit Default Swaps Credit
default swaps involve special risks in addition to those mentioned above because they are difficult to value, are highly susceptible to liquidity and
credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying
obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection buyer in a credit default
contract may be obligated to pay the protection seller an up front payment or a periodic stream of payments over the term of the contract
provided generally that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the
par value (full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity
described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the
buyer or seller in the transaction.
Forward Foreign Currency Exchange
Contracts Forward foreign currency exchange contracts do not eliminate fluctuations in the value of non-U.S. securities but rather allow the
Fund to establish a fixed rate of exchange for a future point in time. This strategy can have the effect of reducing returns and minimizing
opportunities for gain.
To the extent derivatives are utilized
to implement the Funds investment strategies, the transactions may involve the risks described below. For example, to the extent the Fund gains
short exposure to a security through a derivative instrument, the Fund will be subject to risks associated with short sales that are described
below.
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Dividend Risk
Because certain of the
corporate loans held by the Fund will have floating or variable interest rates, the amounts of the Funds monthly distributions to its
stockholders are expected to vary with fluctuations in market interest rates. Generally, when market interest rates fall, the amount of the
distributions to stockholders will likewise decrease.
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Emerging Markets Risk
Emerging markets are
riskier than more developed markets because they tend to develop unevenly and may never fully develop. Investments in emerging markets may be
considered speculative.
Emerging markets are more likely to experience hyperinflation and currency devaluations, which adversely affect returns to
U.S. investors. In addition, many emerging securities markets have far lower trading volumes and less liquidity than developed markets.
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Event Risk
Event risk is the risk that
corporate issuers may undergo restructurings, such as mergers, leveraged buyouts, takeovers, or similar events financed by increased debt. As a result
of the added debt, the credit quality and market value of a companys bonds and/or other debt securities may decline significantly.
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Extension Risk
When interest rates rise,
certain obligations will be paid off by the obligor more slowly than anticipated, causing the value of these securities to fall.
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Foreign Securities Risk
Foreign investments
often involve special risks not present in U.S. investments that can increase the chances that the Fund will lose money. These risks
include:
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The Fund generally holds its foreign securities and cash in
foreign banks and securities depositories, which may be recently organized or new to the foreign custody business and may be subject to only limited or
no regulatory oversight.
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Changes in foreign currency exchange rates can affect the value of
the Funds portfolio.
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The economies of certain foreign markets may not compare favorably
with the economy of the United States with respect to such issues as growth of gross national product, reinvestment of capital, resources and balance
of payments position.
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The governments of certain countries may prohibit or impose
substantial restrictions on foreign investments in their capital markets or in certain industries.
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Many foreign governments do not supervise and regulate stock
exchanges, brokers and the sale of securities to the same extent as does the United States and may not have laws to protect investors that are
comparable to U.S. securities laws.
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Settlement and clearance procedures in certain foreign markets may
result in delays in payment for or delivery of securities not typically associated with settlement and clearance of U.S. investments.
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The European financial markets have recently experienced
volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of several European countries. These events
have adversely affected the exchange rate of the Euro and may spread to other countries in Europe, including countries that do not use the Euro. These
events may affect the value and liquidity of certain of the Funds investments.
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High Portfolio Turnover Risk
The Fund may
engage in active and frequent trading of its portfolio securities. High portfolio turnover (more than 100%) may result in increased transaction costs
to the Fund, including brokerage commissions, dealer mark-ups and other transaction costs on the sale of the securities and on reinvestment in other
securities. The sale of Fund portfolio securities may result in the realization and distribution to shareholders of higher capital gains or losses as
compared to a fund with less active trading policies. Given the frequency of sales, such gain or loss will likely be short-term capital gain or loss
and would increase an investors tax liability unless shares are held through a tax-deferred or exempt vehicle. These effects of higher than
normal portfolio turnover may adversely affect Fund performance.
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Interest Rate Risk
Interest rate risk is the
risk that prices of bonds and other fixed income securities will increase as interest rates fall, and decrease as interest rates rise.
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Junk Bonds Risk
Although junk bonds generally
pay higher rates of interest than investment grade bonds, junk bonds are speculative, high risk investments that may cause income and principal losses
for the Fund.
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Leverage Risk
Some transactions may give rise
to a form of economic leverage. These transactions may include, among others, derivatives, and may expose the Fund to greater risk and increase its
costs. As an open-end investment company registered with the Securities and Exchange Commission (the SEC), the Fund is subject to the
federal securities laws, including the Investment Company Act of 1940, as amended, the rules thereunder, and various SEC and SEC staff interpretive
positions. In accordance with these laws, rules and positions, the Fund must set aside liquid assets (often referred to as asset
segregation), or engage in other SEC- or staff-approved measures, to cover open positions with respect to certain kinds of
instruments. The use of leverage may cause the Fund to liquidate portfolio positions when it may not be advantageous to do so to satisfy its
obligations or to meet any required asset segregation requirements. Increases and decreases in the value of the Funds portfolio will be magnified
when the Fund uses leverage.
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Liquidity Risk
Liquidity risk exists when
particular investments are difficult to purchase or sell. The Funds investments in illiquid securities may reduce the returns of the Fund because
it may be difficult to sell the illiquid securities at an advantageous time or price. To the extent that the Funds principal investment
strategies involve derivatives or securities with substantial market and/or credit risk, the Fund will tend to have the greatest exposure to liquidity
risk. Liquid investments may become illiquid after purchase by the Fund, particularly during periods of market turmoil. Illiquid investments may be
harder to value, especially in changing markets, and if the Fund is forced to sell these investments to meet redemption requests or for other cash
needs, the Fund may suffer a loss. In addition, when there is illiquidity in the market for certain securities, the Fund, due to limitations on
illiquid investments, may be subject to purchase and sale restrictions.
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Market Risk and Selection Risk
Market risk is
the risk that one or more markets in which the Fund invests will go down in value, including the possibility that the markets will go down sharply and
unpredictably. Selection risk is the risk that the securities selected by Fund management will underperform the markets, the relevant indices or the
securities selected by other funds with similar investment objectives and investment strategies. This means you may lose money.
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Mezzanine Securities Risk
Mezzanine
securities carry the risk that the issuer will not be able to meet its obligations and that the equity securities purchased with the mezzanine
investments may lose value.
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Mortgage- and Asset-Backed Securities Risks
Mortgage- and asset-backed securities represent interests in pools of mortgages or other assets, including consumer loans or receivables
held in trust. Mortgage- and asset-backed securities are subject to credit, interest rate, prepayment and extension risks. These securities also are
subject to risk of default on the underlying mortgage or asset, particularly during periods of economic downturn. Small movements in interest rates
(both increases and decreases) may quickly and significantly reduce the value of certain mortgage-backed securities.
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Preferred Securities Risk
Preferred
securities may pay fixed or adjustable rates of return. Preferred securities are subject to issuer-specific and market risks applicable generally to
equity securities. In addition, a companys preferred securities generally pay dividends only after the company makes required payments to holders
of its bonds and other debt. For this reason, the value of preferred securities will usually react more strongly than bonds and other debt to actual or
perceived changes in the companys financial condition or prospects. Preferred securities of smaller companies may be more vulnerable to adverse
developments than preferred stock of larger companies.
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Prepayment Risk
When interest rates fall,
certain obligations will be paid off by the obligor more quickly than originally anticipated, and the Fund may have to invest the proceeds in
securities with lower yields.
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Repurchase Agreements and Purchase and Sale Contracts
Risk
If the other party to a repurchase agreement or purchase and sale contract defaults on its obligation under the agreement, the Fund
may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security in either
situation and the market value of the security declines, the Fund may lose money.
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Reverse Repurchase Agreements Risk
Reverse
repurchase agreements involve the sale of securities held by the Fund with an agreement to repurchase the securities at an agreed-upon price, date and
interest payment. Reverse repurchase agreements involve the risk that the other party may fail to return the securities in a timely manner or at all.
The Fund could lose money if it is unable to recover the securities and the value of the collateral held by the Fund, including the value of the
investments made with cash collateral, is less than the value of securities. These events could also trigger adverse tax consequences to the
Fund.
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Second Lien Loans Risk
Second lien loans
generally are subject to similar risks as those associated with investments in senior loans. Because second lien loans are subordinated or unsecured
and thus lower in priority of payment to senior loans, they are subject to the additional risk that the cash flow of the borrower and property securing
the loan or debt, if any, may be insufficient to meet scheduled payments after giving effect to the senior secured obligations of the
borrower.
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Senior Loans Risk
There is less readily
available, reliable information about most senior loans than is the case for many other types of securities. An economic downturn generally leads to a
higher non-payment rate, and a senior loan may lose significant value before a default occurs. Moreover, any specific collateral used to secure a
senior loan may decline in value or become illiquid, which would adversely affect the senior loans value. No active trading market may exist for
certain senior loans, which may impair the ability of the Fund to realize full value in the event of the need to sell a senior loan and which may make
it difficult to value senior loans. Although senior loans in which the Fund will invest generally will be secured by specific collateral, there can be
no assurance that liquidation of such collateral would satisfy the borrowers obligation in the event of non-payment of scheduled interest or
principal or that such collateral could be readily liquidated. To the extent that a senior loan is collateralized by stock in the borrower or its
subsidiaries, such stock may lose all of its value in the event of the bankruptcy of the borrower. Uncollateralized senior loans involve a greater risk
of loss. The senior loans in which the Fund invests are usually rated below investment grade.
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Short Sales Risk
Because making short sales
in securities that it does not own exposes the Fund to the risks associated with those securities, such short sales involve speculative exposure risk.
The Fund may incur a loss as a result of a short sale if the price of the security increases between the date of the short sale and the date on which
the Fund replaces the security sold short. Short sale transactions involve leverage because they can provide investment exposure in an amount exceeding
the initial investment.
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Small and Mid-Capitalization Company Risk
Companies with small or mid-size market capitalizations will normally have more limited product lines, markets and financial resources and will be
dependent upon a more limited management group than larger capitalized companies. In addition, it is more difficult to get information on smaller
companies, which tend to be less well known, have shorter operating histories, do not have significant ownership by large investors and are followed by
relatively few securities analysts.
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n
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Sovereign Debt Risk
Sovereign debt
instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for
example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entitys
debt position in relation to the economy or the failure to put in place economic reforms required by the International Monetary Fund or other
multilateral agencies.
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7
n
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Structured Products Risk
Holders of
structured products bear risks of the underlying investments, index or reference obligation and are subject to counterparty risk. The Fund may have the
right to receive payments only from the structured product, and generally does not have direct rights against the issuer or the entity that sold the
assets to be securitized. Certain structured products may be thinly traded or have a limited trading market. In addition to the general risks
associated with debt securities discussed herein, structured products carry additional risks, including, but not limited to: the possibility that
distributions from collateral securities will not be adequate to make interest or other payments; the quality of the collateral may decline in value or
default; and the possibility that the structured products are subordinate to other classes. Structured notes are based upon the movement of one or more
factors, including currency exchange rates, interest rates, referenced bonds and stock indices, and changes in interest rates and impact of these
factors may cause significant price fluctuations. Additionally, changes in the reference instrument or security may cause the interest rate on the
structured note to be reduced to zero.
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n
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Tax and Regulatory Risk
Certain aspects of
the tax treatment of derivative instruments, including swap agreements, are currently unclear and may be affected by changes in legislation,
regulations or other legally binding authority that could affect the character, timing and amount of the Funds taxable income or gains and
distributions. Other future regulatory developments may also impact the Funds ability to invest or remain invested in certain
derivatives.
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Because the Fund does not have a full calendar year of operations,
it does not have performance information an investor would find useful in evaluating the risks of investing in the Fund. The Funds benchmark is
the BofA Merrill Lynch 3-Month U.S. Treasury Bill Index.
The Funds investment manager is BlackRock Advisors, LLC
(previously defined as BlackRock). The Funds sub-advisers are BlackRock Financial Management, Inc. and BlackRock International
Limited. Where applicable, BlackRock refers also to the Funds sub-advisers.
Name
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Portfolio Manager
of the
Fund Since
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Title
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Michael Phelps
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2011
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|
Managing Director of BlackRock, Inc.
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Joshua Tarnow
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2011
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Managing Director of BlackRock, Inc.
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Purchase and Sale of Fund
Shares
You may purchase or redeem shares of the Fund each day the New
York Stock Exchange is open. To purchase or sell shares you should contact your financial intermediary or financial professional, or, if you hold your
shares through the Fund, you should contact the Fund by phone at (800) 441-7762, by mail (c/o BlackRock Funds, P.O. Box 9819, Providence, Rhode Island
02940-8019), or by the Internet at www.blackrock.com/funds. The Funds initial and subsequent investment minimums generally are as follows,
although the Fund may reduce or waive the minimums in some cases:
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|
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Investor A and Investor C
Shares
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Institutional
Shares
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|
Minimum Initial Investment
|
|
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$1,000 for all accounts except:
· $250
for certain fee-based programs.
· $100 for retirement plans.
· $50, if establishing an Automatic
Investment Plan.
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$2 million for institutions and individuals.
Institutional Shares are available to clients of
registered investment advisors who have $250,000 invested in the Fund.
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Minimum Additional Investment
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$50 for all accounts except certain
retirement plans and payroll deduction
programs may
have a lower minimum.
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No subsequent minimum.
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8
The Funds dividends and distributions may be subject to
Federal income taxes and may be taxed as ordinary income or capital gains, unless you are a tax-exempt investor or are investing through a retirement
plan, in which case you may be subject to Federal income tax upon withdrawal from such tax-deferred arrangements.
Payments to Broker/Dealers and
Other Financial Intermediaries
If you purchase shares of the Fund through a broker-dealer or
other financial intermediary, the Fund and BlackRock Investments, LLC, the Funds distributor, or its affiliates may pay the intermediary for the
sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other financial
intermediary and your individual financial professional to recommend the Fund over another investment. Ask your individual financial professional or
visit your financial intermediarys website for more information.
9
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INVESTMENT COMPANY ACT FILE #811-05742
© BlackRock Advisors, LLC
SPRO-GLSC-1112
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