BlackRock Dynamic High Income Fund Flyer 201810

1 BlackRock Dynamic High Income fund OCTOBER 2018 A flexible approach aiming to achieve high yield through exposure to complementary Income sources Important Information 1. The fund may invest in debt securities that are subject to actual or perceived ratings downgrade. An increase in interest rates may adversely affect the value of the bonds held by the fund . The fund may invest in non-investment grade and unrated bonds that may be subject to higher default, volatility and liquidity risks. The fund invests in bonds issued or guaranteed by governments or authorities, which may involve political, economic, default or other risks.

2 The fund 's investments in equities could incur significant losses due to higher fluctuation of equity values. The fund invests in asset/mortgage backed securities that may be subject to greater credit, liquidity, and interest rate risks and are often exposed to extension and prepayment risks. The fund 's Income -generating investment strategy may reduce the potential for capital growth and future Income of the fund . 2. The fund is subject to currency risk, emerging market risk and securities lending counterparty risk. 3. Class 6 Shares pay dividends gross of expenses and/or from capital at the Directors' discretion.

3 Class 8 Shares pay dividends gross of expenses and/or from capital at the Directors' discretion and include interest rate differentials arising from share class currency hedging. Negative interest rate differentials may decrease the dividends paid. Paying dividends gross of expenses may result in more Income being available for distribution; however these shares may effectively pay dividends from capital may amount to a partial return or withdrawal of an investor's original investment or capital gains. All declared dividends result in an immediate reduction in the NAV price of the share class on the ex-dividend date.

4 4. The fund may use derivatives for hedging and for investment purposes. However, usage for investment purposes will not be extensive. The fund may suffer losses from its derivatives usage. 5. The value of the fund can be volatile and can go down substantially within a short period of time. It is possible that a certain amount of your investment could be lost. 6. Investors should not make investment decisions based on this document alone. Investors should refer to the Prospectus and Key Facts Statement for details including risk factors. Why invest? yield 1. Blends traditional and complementary SHARE CLASSES.

5 (A6 USD) Income sources to help deliver high yield yield Targeted exposure of the strategy (A8 AUD Hedged) Covered Calls Global REITs Institutional Preferred Latest dividend yield (09/28/18) Stock (A6 and A8 share classes aim Collateralised Loan Obligations /. to pay a dividend on a monthly Dividend Equities Floating Rate Loans US, Global and basis. Dividend Payment is not Emerging Markets Traditional Complementary Non-Agency Mortgages guaranteed , and is not indicative Bonds Income sources Income sources Commercial Mortgage . ~0-30% ~70 100%. Sovereign, of the return of the fund . The Corporate and backed Securities fund may effectively pay High Yield Emerging Market Debt dividend from capital.)

6 See important ). information 3 Footnote 2. Source: BlackRock , as of August 2018. For illustrative purposes only. Subject to change. The listed Income sources are not equally weighted. The percentages shown represent the overall target exposure of the listed Income sources in a whole which are not investment restrictions and may vary from time to time. Diversified Sources of 2. Provides exposure to diversified, complementary asset Incomes classes which can be difficult for individuals to access Complementary Income sources tend to have low or negative correlation to Complementary Income traditional Income sources1.

7 Sources of higher yield with low correlation to traditional 120%. asset classes Covered Calls 80. Global Equity Collateralised Lower Sensitivity 40. Preferred Stock Loan Obligations Global REITs to Interest Rate Emerging Market Debt Changes 0. Non-Agency MBS/CMBS. -40. -80 -40 0 40%. Global Bonds To learn more about the fund and complementary Source: BlackRock as at end June 2018. Correlations based on select underlying sleeves within the US '40 Act Dynamic High Income Income sources, please Strategy (the Strategy ) using the BlackRock DLY risk model data (252 daily observations with a 40 day half life). Global Bonds refers to speak to your adviser or visit Barclays Global Agg (USD Hedged); Global Equity refers to MSCI World.

8 Correlation ranges from +1 (perfect positive correlation) to -1. (perfect negative correlation). Index performance is for illustrative purpose only. Investor cannot invest directly into the index. MKTG1018A-644762-1999485. BlackRock Dynamic High Income fund Investment Objective fund Data The Dynamic High Income fund follows a flexible asset allocation policy that Michael Fredericks/ seeks to provide a high level of Income . In order to generate high levels of Manager Alex Shingler/ Income the fund will seek diversified Income sources across a variety of asset Justin Christofel classes, investing significantly in Income producing assets such as fixed Income Inception transferable securities, including corporate and government issues which may Currency Unhedged: USD be fixed and floating and may be investment grade, sub-investment grade or SGD, CAD, EUR, unrated, covered call options and preference shares.

9 The fund will use a variety Hedged: GBP, HKD, AUD, NZD of investment strategies and may invest globally in the full spectrum of permitted Total fund Size (m) USD2, investments including equities, equity-related securities, fixed Income transferable Annual Management Fee securities, units of undertakings for collective investment, cash, deposits and (Including Distribution money market instruments. Currency exposure is flexibly managed. fee, if any). Initial Charge 5%. Bloomberg Ticker BGDHA2U. Performance in USD (%). ISIN Code LU1564329032 Cumulative 3 Months 6 Months NAV (USD) fund (A2) + + Composition of fund (%) 102.

10 Country fund Indexed Performance 101. North America 100. Europe Emerging Markets 99. Asia Pacific ex-Japan Japan 98. Others Feb 18 Mar 18 May 18 Jul 18 Sep 18. Cash and Derivatives Distribution Information Ex-dividend date: Currency Share Class Frequency Dividend Yield (%)2. Asset AUD hedged A8 Distributing (R) Monthly NZD hedged A8 Distributing (R) Monthly US Fixed Income CAD hedged A6 Distributing (S) Monthly US Equity EUR hedged A6 Distributing (S) Monthly Non-US Fixed Income Non-US Equity GBP hedged A6 Distributing (S) Monthly Others HKD hedged A6 Distributing (S) Monthly Cash and Derivatives SGD hedged A6 Distributing (S) Monthly USD A6 Distributing (S) Monthly Asset Breakdown 10 Largest Holdings Covered Call Writing Company Weighting (%).