BlackRock Global Funds (BGF)

Local Emerging Markets Short DurationBond FundOctober 2011

FOR PROFESSIONAL INTERMEDIARIES ONLY

2

Table of Contents

I. BlackRock Emerging Market Debt CapabilitiesII. Investment PhilosophyIII. Investment ProcessIV. BGF Local Emerging Markets Short Duration Bond FundV. Investment Themes and Market Review

Section I

BlackRock Emerging Market Debt Capabilities

Overview of BlackRock’s Emerging Market Debt Platform

1 Includes EM portion of Universal indexed mandates* Assets as of 30 September 2011

$4.9 billion in Dedicated EMD Mandates*BlackRock manages approximately $4.9 billion in dedicated external debt and local currency portfolios1

Highly integrated with BlackRock’s fixed income and global businesses

• Emerging market team works closely with global bond team

• Active, multi-disciplinary approach supported by BlackRock’s fixed income efforts globally

• Coordinated corporate, high yield and sovereign credit research

• BlackRock Solutions risk management and trading platforms

Dedicated professional resources and broaderproduct capabilities

• Imran Hussain with 21 years of industry experience is the lead sector specialist

• External debt and local currency product offerings

• Broad mutual fund offerings in the US and internationally as well as a strong institutional product

Considerable local market expertise• Dedicated personnel for the management of currency exposure

• Specialized analytics for local currency instruments

• $2.2 billion in dedicated local currency assets

• Provide a leadership role for the markets as a member of the JPM Index Advisory Committee

2,2392,703

External DebtLocal Currency

BlackRock Emerging Market Debt Expertise

Managing EM fixed income since 1996

Dedicated EMD assignments since January 2001

Focus on external debt and local markets

Leverage expansive capabilities as a global asset manager

• Strong, highly consistent performance in dedicated portfolios• EMD annualized active return +2.08% since inception through 30 September 2011

Performance

• Global fixed income• Sovereign research analysts• Global credit research• International equity

People

• Proprietary and third-party data• Sophisticated relative value

analysis• Analytical and empirical risk

measures• VAR and stress testing tools• Regression models• Flexible reporting

Tools

• Disciplined investment process incorporates top-down and bottom-up analysis with rigorous risk management

Process

For use with institutional and professional investors only — proprietary and confidential

Investment Team Leverages the Firm’s Resources

• Peter Fisher, Head of Fixed Income• Imran Hussain, Lead Emerging Markets Specialist• Kanzo Nakayama, Emerging Market Analyst• Daniel Shaykevich, Emerging Markets Specialist• Yudhveer Chaudhry, Lead Foreign Exchange Specialist• Javier Revelo, Foreign Exchange Specialist• Miguel Rodriguez, Emerging Markets Quant Specialist• Scott Thiel, Deputy CIO, Head of European & Non-US Fixed

Income

Portfolio Management

• Global Credit Research Analysts analyze sovereigns, investment grade, and high yield corporates

• Senior Asian Credit Analyst: Neeraj Seth• Senior Sovereign Credit Analyst: Edward Stevens• Senior Financial Analyst: Keven Maloney• Senior Commodity Analyst: Ned Hole• Senior Tech/ Telecom Analyst: Melvin Rosa• Over 45 corporate investment grade and high yield credit

analysts specialize by sector

Credit Management

• Proprietarily-developed risk management and analytics platform measures global fixed income risks

• Daily parametric analysis measures individual portfolio risks versus benchmarks

• Daily valuation of index positions• Daily value-at risk analysis and stress testing

BlackRock Solutions

• Non-US equity team provide insights on macroeconomic outlook

• Lead Emerging Market Equity Regional Specialists– Sam Vecht - Europe, Middle East, Africa– William Landers - Latin America

Non-US Equity Team

BlackRock’s Global Emerging Market Debt performance

* Annualized since inceptionResults do not reflect the deduction of management/advisory fees and other expenses; management/advisory fees and other expenses will reduce a client’s return. For example, assuming an annual gross return of 8% and an annual management/advisory fee of 0.25%, the net annualized total return of the portfolio would be 7.74% over a 5-year period. Fees are described in Part II of BlackRock’s Form ADV. Past results are not necessarily indicative of future results

Portfolio Statistics*

Composite EMBI Global Index

Portfolio volatility 10.35% 9.61%

Sharpe ratio 0.95 0.81

Information ratio 0.81 -

BlackRock’s Emerging Market Debt Composite has outperformed the JPMorgan EMBI Global Index in 62% of past quarters since inception

As of 30 September 2011

• No leverage• No emerging market equity• No CDS until January 2007• Around 75% of the portfolio allocated to the most liquid bonds, compared to

59% in the benchmark • Portfolio holds ~38% of the bonds in the benchmark which is consistent with

our philosophy of controlling liquidity and taking active bets against the benchmark

Portfolio Information

• Outperformed every calendar year with the exception of 2007 and 2009• Proven ability to navigate difficult market conditions, including:

– 2001 Argentina Debt Default– 2002 Brazil Crisis– 2008 Global Credit Crisis

Record of Outperformance

Total return in USD (Ann%)

11.9512.08

9.57

2.77

8.339.79

11.68

8.33

1.28

7.81 8.679.87

0

5

10

15

20

25

1 Year 2 Year 3 Year 5 Year 7 Year SinceInception

1 April 2001

Value added+149 bps +124 bps +40 bps +52 bps +112 bps + 208 bps

BlackRock Emerging Market Debt Composite

JPMorgan EMBI Global Index

0

5

10

15

20

25

30

35

-2.7

0

-2.4

0

-2.1

0

-1.8

0

-1.5

0

-1.2

0

-0.9

0

-0.6

0

-0.3

0

0.00

0.30

0.60

0.90

1.20

1.50

1.80

2.10

2.40

2.70

3.00

Active Return (pct)

Freq

uenc

y (m

onth

s)

BlackRock Emerging Market Debt Active Performance Analysis - Exhibits Positive Skew

Distribution of Gross Monthly Active Returns

Source: BlackRockAs of 30 September 2011.Past results are not necessarily indicative of future results

Return Statistics

Returns Fund Benchmark Active

worst -17.36 -14.89 -2.47

5% -3.54 -4.04 -1.05

Mean 0.99 0.86 0.16

95% 4.39 4.40 1.39

Best 9.32 7.77 2.70

*

* Reported Fund performance relative to its Benchmark in Oct 2008 was negatively affected by the timing differential between pricing of the Fund and its benchmark

BlackRock’s Local Emerging Market Debt Performance

* Annualized since inceptionResults do not reflect the deduction of management/advisory fees and other expenses; management/advisory fees and other expenses will reduce a client’s return. For example, assuming an annual gross return of 8% and an annual management/advisory fee of 0.25%, the net annualized total return of the portfolio would be 7.74% over a 5-year period. Fees are described in Part II of BlackRock’s Form ADV. Past results are not necessarily indicative of future results

Local Emerging Market Debt Representative Portfolio

As of 30 September 2011

• Regulations dictate that the fund invests a minimum of 70% in local currency-denominated emerging markets fixed income securities with a duration of less than 5 years, while the index is an all currency benchmark

• Fund pays out dividends (not promised) on a regular basis

Portfolio Information Total Return in USD (Ann%)

1.550.86

-4.94

5.12

8.20

1.741.12

-3.83

6.127.22

-6

-4

-2

0

2

4

6

8

10

1 Yr 2 Yr 3 Yr 5 Yr SinceInception

1 July 1997

Value Added

-111 bps -26 bps -19 bps -100 bps +98bps

Local Emerging Market Debt Representative Portfolio

JPMorgan ELMI+ Index

Section II

Investment Philosophy

11

Investment Philosophy and Process: Flexibility, Agility and Discipline

The changing nature of global risk requires an active and flexible investment philosophy • Employ a holistic, dynamic, multi-disciplinary approach to generate consistent returns

– Integrate views on global fixed income, currencies, equities and commodities

• Primary focus on more liquid strategies and instruments

• Core positions based on macro environment, fundamentals, valuation, volatility, correlation, liquidity and momentum

• Evaluate internal themes against market perceptions while defining potential catalysts

Strategies based on investment themes and trends• Identify stages of the economic cycle, trends, and catalysts to define opportunity set

• Focus on macro and micro vulnerabilities

Dynamic capital allocation and bottom-up portfolio construction• Identify mispricings and implement trades that best express themes

• Capital allocation based on risk / reward and market outlook

Discipline is the foundation of prudent risk management• Capital preservation through active management, risk limits and insurance strategies

• Respect market momentum, recognize market non-linearity and avoid “value traps”

• Cross market inferences for risk premia, correlations, volatilities and liquidity

12

Tradable Instruments in Emerging Markets – Risk Spectrum

Hard Currency External Debt (public obligations)• Highest payment priority

• Cross-border trade and capital flows are vitally important to economic health

• Countries generally prefer to maintain strong relationships with external creditors

Local Currency Domestic Debt (public obligations)• Most “Junior” class of debt (lowest payment priority)

• Currency risk

Equity Market (private obligations)• Most volatile Emerging Markets asset class

• Credit and currency risk

• Encompasses Sovereign risk and corporate risk

Lowest Risk

Highest Risk

13

BlackRock Local Debt and Currency Market Capabilities

Philosophy: Controlled risk, active management style• Evaluating currency risk separate from interest rate risk• Focus on fundamentals (macro and micro economic analysis)

– Growth and inflation Trends

– Politics, monetary and fiscal policy

– Trade and capital flows

• Valuation– Nominal rates

– Real rates

– Real effective exchange rates

• Attention to technicals– Analysis of foreign and local demand

– Market segmentation

• Emphasis on directional and relative value strategies• Active risk management

– State of the art risk management tools

– Use of derivatives and stop loss levels

Section III

Investment Process

15

Distinct Active Investment Process: Fundamental

Collaborative process combining top-down and bottom-up investment insights• Rick Rieder as Chief Investment Officer of Fixed Income, Fundamental Portfolios, leads the investment strategy meetings

• Investment Teams are responsible for research, analysis, security selection, and execution

• Portfolio Teams are each independently accountable for asset allocation and portfolio construction

1. Interim Head of US IG Credit Investments.

Investment Teams

Bottom-up idea generation and research

Global RatesEric Pellicciaro

Securitized AssetsDik Blewitt

Randy Robertson

Corporate Credit (IG – Lev Fin)Jeff Cucunato1

James KeenanMichael Phelps

Neeraj Seth

MunicipalsPeter Hayes

Portfolio TeamsTop-down determination of themes and

portfolio construction

Multi-Sector & MortgageRick Rieder – Retail & Mutual Fund

Akiva Dickstein – MortgageStuart Spodek – Obsidian & Short Duration

Brian Weinstein – Inst’l Multi-Sector

Corporate CreditRick Rieder – Credit Strategies

Jeff Cucunato – IG / Long DurationJames Keenan – Lev. Finance

European & Non-US Fixed IncomeScott Thiel – Euro

Shigeru Endo – YenAndrew Gordon – Global Bond

Imran Hussain – EMDMichael Krautzberger – Euro

Steve Miller – AustraliaPaul Shuttleworth – Sterling

Financial InstitutionsKevin HoltJeff Jacobs

MunicipalsPeter Hayes

James Pruskowski – Inst’l & WealthTed Jaeckel – Mutual Fund

Walter O’Connor – Mutual Fund

Investment Strategy Meetings

Rick RiederChief Investment Officer

Scott ThielDeputy CIO

Market outlook meeting

• Trade ideas• Intra-sector and security

selection• Focus topics

Portfolio strategy meeting

• Asset allocation• Sector rotation• Duration / curve decisions

• Investment Teams• Portfolio Teams

• Lead Portfolio Managers• Lead Investment Managers

16

Investment Process: Integration

Monday meeting• Global Emerging Market trends

• Bond / currency / equity analysis

• Event risk analysis

Global Emerging Markets Debt Investment Team

Tuesday meeting• Global macroeconomic trends

• Market / sector themes

Market Outlook Meeting

Thursday meeting• Global macroeconomic trends

• Market / sector themes

Emerging Markets Fixed-Incomeand Equity Teams

Regional/Sovereign Review and Allocation• Top / down assessment• Review of key fundamental factors

Portfolio Construction: Sector and Security Selection• Relative value analysis• Extensive use of proprietary models• Technical / structural characteristics

Emerging Markets Portfolio• Risk analysis• Guideline monitoring

17

Investment Process: Portfolio Construction

Value Added

Macro Perspective• Global monetary and fiscal policies

• Global asset prices

• Contagion

• Geo-politics

• Globalization

Macro & Country Strategies

Sovereign Fundamentals• External accounts

• Domestic conditions

• Policies

• Politics / reforms

Risk and Return Profile• Spread and interest rate durations

• Empirical adjustments

• Volatilities and correlations

• Expected return analysis

Relative Value Strategies

Onshore – Offshore• External debt

• Local debt

• Foreign exchange

Sector• Governments

• Quasi-governments

• Corporates

• Securitizations

Security Selection• Apply proprietary models

• Assess relative spread, yield and price

• Determine relative volatility to index (bond “beta”)

Sovereign Curve Slope,Level and Curvature

18

Local Market Currency Allocation

Currencies and local rates exposures are an integral part of the investment process• Separation between local interest rate and currency decisions

• Currency overlay

• Directional and relative value opportunities

• Forwards most often the instrument of choice

• Risk management

Currency and Local Rates Allocation

Country Fundamentals

Valuation

Exchange Regime

Convergence Potential

Macro PerspectiveTechnicals

19

Investment Process: Sovereign Review

• Liquidity / Solvency

• Political Outlook

• Fiscal Policy

• Reform Progress

• Current Account Analysis

• Monetary and Exchange Rate Analysis

• Capital Account Analysis

• Domestic Market Assessment

• Ability / willingness to pay / politics

• Debt sustainability

• Balance of payments

• Multilateral institutions / Geo-politics

Identify “event risks” Determine the trend of external and internal indicators

Macro

RV

Macro

20

Market Non-Normality as it Relates to Portfolio Construction

Fat Tail Risk Management

• EM, G-7, macro hedges• Short liquidity premiums• Derivative / insurance strategies• Momentum

Positive Skew/Upside

• High beta spreads, rate, FX• Derivative strategies• Momentum

Core Strategies: Standstill/High Risk Adjusted

• Modest beta / low vol / high carry securities• EM relative value or EM vs. G7• Cross-sector, cross-market, cross-asset class

Distribution of Risks

• Make money off a standstill return environment: Non-correlated trades – high sharpe ratio• Generally favor long gamma profile• Long downside protection (against “Black Swan”)• Application of stop losses (there is no substitute for investment discipline)

21

An Intuitive, Dynamically Integrated Risk Management Framework

BlackRock’s investment management culture is predicated on understanding and adapting to changesin risk

• Focus on understanding risk and generating risk-adjusted returns

• Risk & quantitative analysis team supports investment process with portfolio and position-level risk analysis

• Proprietary research platform (Galileo™) consolidates global research in order to maximize information flow

Integrated Risk Management Framework

ParametricRisk Analysis

Duration, convexity,spread duration, credit

spread duration,key rate analysis

ProbabilisticRisk AnalysisPortfolio strategy

and securityValue-at-Risk analysis

StressTesting

Analysis of portfolio inactual and hypothetical

market conditions

LiquidityRisk

Analysis of changes in financing costs, liquidation costs, and credit conditions

CounterpartyRisk

Measure and monitor counterparty, issuer,

enhancer, andunderlier exposures

Fundamentals(“What”)

Macro rankingsTrend assessmentIdentify event risks

Cross market analysis

Quant(“When”)

Technical analysisRisk sentiment

Cross correlationsRegime shiftsStop losses

Allocation/Trade Size(“How Much”)

Risk-reward rankingsCorrelations, Volatility, Liquidity

Idiosyncratic riskFactor risk

22

BlackRock Solutions Risk Model

BlackRock solutions’ risk model contains over 1,200 distinct global risk factors designed to capture implications of all major market movementsThe risk model is used to calculate various portfolio level risk measures including VaR, tracking error (ex ante) andstress testing

• Two types of VaR / TE analysis

– Analytic VaR measures expected risk based on the linear sensitivity of the portfolio to a complete set of market risk factors

– Historical VaR measure expected risk based on current parametric exposures and actual observed historical daily market changes

• BlackRock solutions works with each client to determine the most appropriate methodology for their portfolios

Types of scenario analysis and stress testingBasic sensitivity analysis

• P&L impact due to perturbation of individual or groups ofrisk factors

– Market shifts may be historical, empirical or ad hoc

Full scenario analysis• P&L due to changes in all risk factors affecting a

portfolio’s value

– Hypothetically-defined based on directional market views

– Historical shifts based on time series data

– Statistically-based principal component shocks

Crisis scenario stress testing• P&L due to changes during highly-volatile market conditions

– Historical shocks during market crises

– Worst case combinations of rate shocks across a time series

Sample BlackRock Solutions Crisis Scenarios

Stress Test Scenario

Historical Period Description of Events

Asian financial crisis Jul 28, 1998–Sep 29, 1998

• Credit & liquidity crisis in Asia and Russia, dramatic treasury market rally

Long-term capital management

Oct 2–Oct 9, 1998

• Credit & liquidity crisis stemming from collapse of long-term capital, simultaneous increase in treasury rates and credit spreads with significant implied volatility

World Trade Center Sep 10–Sep 28, 2001

• Significant decrease in interest rates coupled with market volatility in wake of World Trade Center catastrophe

Prolonged recession N/A • Ad-hoc “worst-case” environment based on empirical data

Summer 2003 –treasury back up

Jun 13–Jul 31, 2003

• Treasury sell off

Jul 2003 – mortgage spread widening

Jul 14–Aug 1, 2003

• Convexity selling as mortgagedurations lengthen

23

Why Choose BlackRock for Emerging Market Debt

People

• Experienced global bond team leverages broad firmwide resources

Process

• Repeatable and disciplined EMD investment process • Diversified set of alpha strategies (not solely country positions), producing a less volatile return series • Sophisticated proprietary analytical platform

Performance

• Exceptional and consistent track record in bull and bear markets

Flexibility in Tailoring Mandates and Service to each Client’s Needs

Section IVBGF Local Emerging Markets Short Duration Bond Fund

25

BGF Local Emerging Markets Short Duration Bond Fund Guidelines

Fund Guidelines• Fund invests in a minimum of 70% of total assets in local currency-

denominated emerging markets fixed income securities with a duration of less than 5 years

• Average fund duration is not more than 2 years

• Includes government, agency and corporate fixed income securities

• Primarily below investment grade but will hold both investment grade and high yield securities

• Active currency management

• Fund rated “A” by Standard & Poor’s

• Ability to pay on interest rates

USD

<2 yearsAverage Duration

Global Emerging MarketsInvest. Region

High Yield

MultiPrimary Currency Exposure

Local EMShort

DurationBondFund

Base Currency

Corporate

Govt &Supranational

Inve

stm

ent G

rade

Inve

stm

ent U

nive

rse

20%

39%

28%

13%

Latin America

Cash & Cash equiv

Developing Europe

Africa / Middle East

-0.50-0.40-0.30-0.20-0.100.000.100.200.300.40

Mexico Brazil Poland South Africa

0.250.15

18.6%

-5.1% -6.9%

5.4%

-5.6%-4.9%

1.9% 3.8%

-6.1%

-20%-15%-10%-5%0%5%

10%15%20%

Uni

ted

Stat

es

Can

adia

nD

olla

r

Aust

ralia

nD

olla

r

Chi

nese

Ren

min

bi

Mex

ican

Peso

Braz

ilian

Rea

l

Sout

hAf

rican

Ran

d

Polis

hZl

oty

Cze

chKo

runa

26

BGF Local Emerging Markets Short Duration Bond Fund

Absolute EM Currency Breakdown by Region

Top Active Currency Exposures (%)

1. Only includes positions >10bps or >-10bps.As of September 30, 2011. Source: BlackRock.

9%

38%41%

8%

Latin America

Developing Europe

Asia

Africa/Middle East

Duration Contribution1

Local Fixed Income Exposure by Region (%)

Effective Duration = 1.30 yrs

0.28 0.26

27

BGF Local Emerging Markets Short Duration Bond Fund Performance

-10%

-8%

-6%

-4%

-2%

0%

2%

4%

6%

8%

10%

BGF Local Emerging Markets Short DurationBond Fund - Gross

-8.10% -9.22% -5.32% -4.94% 1.55% 5.12% 8.20%

BGF Local Emerging Markets Short DurationBond Fund

-8.19% -9.51% -6.22% -6.15% 0.24% 3.83% 7.07%

JPM ELMI+ -7.61% -8.94% -4.24% -3.83% 1.74% 6.12% 7.22%

Sector Average* -9.81% -8.99% -4.39% -4.70% 5.05% 6.30% 7.94%

1 Month % 3 Months % YTD % 1 Year % 3 Years p.a. %

5 Years p.a. %

Since Launch p.a. %

As of 9/30/11. Fund Size: $2.3 billion. ISIN code: LU0278470058Source: BlackRock, Morningstar, and DataStream. Past performance is not a guide to future performance. The value of investments and the income from them can fall as well as rise and is not guaranteed. You may not get back the amount originally invested. Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. BGF Local Emerging Markets Short Duration Bond Fund is a newly created BGF fund which was previously the ML Developing Limited Maturity Portfolio (Local Currency) during Q1 2007. Class A2 since inception - 26 June 1997. * Sector – Mstar IM SB Global Emg Mkt Bond- Local Currency. Not annualized for periods less than one year. All total returns are based on a NAV (net asset value) basis and do include the deduction of sales charge and taxes. Returns assume reinvestment of capital gains and dividends. Past performance is not a guide to future performance. Information subject to change.

% R

etur

n

Section V

Investment Themes and Market Review

Key Local Emerging Market Investment Themes

Latin America Asia Eastern Europe Middle East/Africa Summary

Currency AllocationUnderweightMexican PesoBrazilian Real

OverweightChinese Renminbi

UnderweightTaiwan Dollar

OverweightPolish Zloty

Russian RubleUnderweightCzech KorunaSwiss Franc

-

• Emphasis on balance of payments and external liquidity positions

• Actively managed currency exposure• Largest weights in currencies of countries

with supportive technicals and positive fundamentals

Local Rates Exposure

LongMexicoBrazil

-Long

PolandLong

South Africa

• Rise in commodity prices has the potential to lead to a turn in the EM rate cycle

• Keep duration short and hedge exposure to most vulnerable markets

Source: BlackRock.As of 30 September 2011.

Global Response to the 2008 Credit Crisis

Overnight Lending Rate Budget Balances

The unprecedented level of monetary accommodation in both developed and emerging economies demonstrates the scale of the response

• While rates in emerging economies remained higher than those of developed economies, relative to historical levels rates are low

Record levels of fiscal stimulus have been provided by both the developed world and from some of the larger emerging market economies

• In the developed world, fiscal stimulus is coming at the expense of a deterioration in government balance sheets

• Fiscal stimulus from EM economies is only coming from those in a strong pre-crisis position that could afford it without a significant deterioration in government balance sheets

0

2

4

6

8

10

12

14

16

18

US

Fed

ECB

BOE

Cze

chR

epub

lic

Indo

nesi

a

Bra

zil

Mex

ico

Turk

ey

Pre-Crisis Average 03-07 2010 Low

2007 2009 ChangeUnited States -1.3% -10.3% -9.0%Euro-zone -0.6% -6.3% -5.7%Japan 0.3% -3.0% -3.3%China 0.6% -2.3% -2.9%Brazil -2.9% -3.4% -0.5%

Budget Balance Deterioration

Source: BloombergAs of 31 December 2009.

Source: BloombergAs of 31 December 2010.

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

Global Purchasing Manufacture's Index (PMIs) are the best high frequency data to gauge growth momentum• Almost all countries above 50 and improving month over month, indicating industry expansion

Real GDP growth improvements are more broad based, with few countries left behind

Continued fiscal accommodation in the US and other developed markets is increasing the 2011 global growth outlook• Stimulus is being front loaded while tax hikes and spending cuts are progressive

• In the US, tax cut extensions and the 2% social security payroll tax holiday is significant

-10

-5

0

5

10

15

1992

–200

1Av

g 2002

2003

2004

2005

2006

2007

2008

2009

2010

F

Advanced Economies United StatesEuro Area Developing EconomiesBrazil MexicoTurkey China

Crisis Response… It Worked!

Global PMIs Real GDP Growth (%)

Source: IMF, HSBCAs of 31 December 2010.

Source: HSBCAs of 31 January 2011.

11-Jan 10-Dec 10-Nov 10-OctAustralia 46.7 46.3 47.6 49.4New Zealand 53.1 52.7 50China HSBC 54.5 54.4 55.3 54.8China NBS 52.9 53.9 55.2 54.7India 56.8 56.7 58.4 57.2Japan 51.4 48.3 47.3 47.2Korea 53.5 53.9 50.2 46.8Singapore 50.5 50.7 51.4 50.7Taiwan 59.8 54.7 51.7 48.6Global 57.2 55.6 54.7 53.9US 60.8 57 56.6 56.9UK 62 58.7 58.5 55.5Germany 60.5 60.7 58.1 56.6France 54.9 57.2 57.9 55.2EURO 57.3 57.1 55.3 54

above 50 above 50 or 0 + falling. below 50 or 0 + falling below 50 or 0 + risingor 0 + rising Same above 50 Same below 50 or 0

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

0

50

100

150

200

250

300

1/2000 9/2001 5/2003 1/2005 9/2006 5/2008 1/2010

Food Price Index Dairy Price Index Cereals Price Index Oils Price Index

Supply Side Inflation Pressures

Weight of Food Prices in CPI Baskets Real Food Prices

The 1st wave of inflation is coming from the supply side• Food and commodity prices are at multi-year highs and their effect on inflation cannot be ignored

• Oil prices are increasing on the back of a stronger global growth outlook

• Demand for commodities being driven in large part by the domestic demand in EM countries

Protectionist measures, export quotas, and subsidies can amplify the effects of supply side shocks

Ultimately, pass through into long-run inflation expectations and core inflation depends on the strength of domestic demand

Source: Food and Agriculture Organization of the United NationsAs of 31 January 2011.

Source: Morgan Stanley; Haver AnalyticsAs of 31 December 2010.

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

-2.00%

-1.50%

-1.00%

-0.50%

0.00%

0.50%

1.00%

1.50%

US Euro-zone China India Indonesia Turkey Mexico

Real Rates

Demand Side Inflation Pressures

The demand side effects which were deflationary during the crisis are set to contribute to inflationary pressures

More than two-thirds of EM economies are now operating with zero or positive output gaps, which can put upward pressure on the prices of goods and services

• Real rates should rise as inflation pressures increase

• There is still a lot of tightening to be done

Real Rates Output Gaps and Inflation

Source: BloombergAs of 31 January 2011.

Source: Morgan Stanley Global Econ estimates, *Sums to 96% as excludes 3 small economiesAs of 31 January 2011.

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

Local Yields on the Rise

12 month Implied Rate Path

EM local yields have risen 70 to 90bps from their lows in 2010 with between 100 and 200bps of rate hikes now being priced into local curves for 2011

As EM economies attempt to balance fighting inflation and cooling ‘hot money’ capital flows, central banks are turning towards quantitative tightening tools such as reserve requirements and liquidity measures

• As central banks respond differently to inflation expectations, country selection will become increasingly important as performance differentiation increases

Monetary Policy Tools

Traditional Channels Banking ChannelsPolicy Exch. Money Lending Reserves/ Moralrates rates Supply Constraints liq-req suasion Other*

Russia 10% 25% 55% 5% 5%Poland 55% 35% 10%Cz. Republic 50% 50%Hungary 40% 40% 10% 10%Turkey 70% 20% 10%Israel 60% 40%UAE 10% 10% 10% 10% 25% 35%S. Africa 90% 5% 5%China 30% 30% 30% 10%India 55% 5% 5% 10% 20% 5%S. Korea 60% 10% 15% 5% 10%Taiwan 30% 10% 20% 30% 10%Singapore 90% 10%Indonesia 55% 15% 10% 10% 10%Malaysia 45% 35% 10% 10%Thailand 80% 10% 10%Brazil 60% 10% 20% 10%Mexico 70% 15% 10% 5%Argentina 75% 20% 5%Chile 60% 10% 10% 20%Peru 65% 5% 15% 15%Colombia 60% 10% 20% 10%

Source: Morgan Stanley Econ estimates. *Liquidity and capital injections for UAE, capital controls for ColombiaAs of 31 December 2010.

Source: HSBC, Bloomberg, Central bank websitesAs of 31 January 2011.

(25)

25

75

125

175

225

Current 2m 4m 6m 8m 10m 12m

Brazil India Korea Mexico Poland South Africa

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

What Does this Mean for EM Local Market Performance?

How 2010 is different from the 2007 – 2008 pre-crisis period• Central banks are attempting to intervene to stem currency appreciation – scope will be limited as rates rise

• Flows out of emerging market equity impact local market performance

• EM currency performance is not directional with equity market performance

Rates are likely to detract from local market returns in 2011• A rising rate environment should be supportive of currency appreciation but will be negative for local rate returns

• Already seeing a negative contribution from rates reflected in local market returns

-10%

0%

10%

20%

30%

40%

50%

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep

-07

Nov

-07

Jan-

08

Mar

-08

May

-08

Jul-0

8

6.0%

6.5%

7.0%

7.5%

8.0%

ELMI+ (EM FX Index) Total Return (LHS)S&P 500 (LHS)GBI-EM (EM Local FI Index) Yield (RHS)

EM Local Market Performance & Rate Contribution

Source: Bloomberg.As of 31 January 2011.

Source: BloombergAs of 31 July 2008.

Not Just a Beta Trade

-2% 0% 2% 4% 6% 8% 10% 12%

Jan 2010 to Aug 2010

Sept 2010 to Jan 2011

GBI-EM Global Diversified Total ReturnGBI-EM GD Return Contribution From Local Rates

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

Indebtedness and Growth Differentials

Emerging market governments carry a much lower debt burden than the developed world• Debt to GDP ratios are lower vs. historical levels with external debt comprising a smaller percentage of debt

While the developed world debt burden is projected to grow, Emerging Markets, with stronger balance sheets and less leverage than the developed world, will see their debt levels decline after post-crisis peak

• Solid fundamentals have allowed emerging markets to better weather the recent periods of stress

This debt dichotomy will fuel increasing growth differentials between EM and developed countries• Relative currency volatility differentials in relation to the developed world continue to converge

• From an asset allocation perspective this implies higher returns with similar volatility to the G-7 currency markets

Gross Government Debt as % of GDP

Source: IMF, World Economic Outlook.As of 31 December 2009.

0

20

40

60

80

100

120

2000 2005 2006 2007 2008 2009 2010 2011E 2014E 2015E

Gro

ss G

ovt D

ebt a

s a

% o

f GD

P

Advanced Countries Emerging Markets

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

Markets Paying More Attention to Sovereign Fundamentals

CDS being used to express negative sovereign views - Governments bonds = credit?

The lines between EM and Advanced economies a bit blurred: A sign of things to come?

Concerns with remaining private sector leverage and currency mismatches have added fuel to the fire

Lack of currency flexibility is an issue in the developed world (eurozone)

Debt to GDP vs. CDS spreads

Developed Nations Emerging Nations

The opinions expressed are as of May 2011 and may change as subsequent conditions vary

Belgium

Italy

Russia

Chile

Ireland

Portugal

Spain

Austria

Finland Netherlands

FranceTurkey

Korea

ChinaBrazil

Mexico UK

US

South AfricaPhilippines

Ukraine

Indonesia

AustraliaNew Zealand GermanySweden Norway

Denmark

-100

200300400

500600700

800900

1,000

1,1001,200

0 20 40 60 80 100 120 140IMF Debt to GDP 2010 Forecast

CDS

5yr S

prea

d

Source: Bloomberg, IMF estimatesAs of 18 October 2011

BGF Local Emerging Markets Short Duration Bond Fund

Opportunities:• EM local currencies are a gauge of relative growth rates and are the most direct way to get access to growth differentials

– Historically, 70% of the Fund’s total return can be attributed to currency movements

• Cyclical trend for EM local rates was supportive for most of 2010 but rates in EM have been rising 3Q10 and we expect this structural headwind to continue

– The Fund’s short duration nature and flexible approach allows us to both short interest rates when we feel rates are vulnerable and opportunistically take duration exposure when we believe rates are attractive

• Lower beta nature and focus on preserving investors' capital allows investors to use the Fund as a more strategic allocation to local market investing

Risks: • Currency volatility is the dominant risk factor in any unhedged fixed income product

• Removal of monetary accommodation in the G-3 can make EM currencies less attractive

– We have the ability to partially hedge the Fund’s vulnerability to a removal of G-3 monetary accommodation

• Contagion from sovereign vulnerabilities, particularly in developed markets

– We implement insurance strategies, which have historically been used successfully to mitigate tail risks

• Some central banks are behind the curve in terms of fighting inflation

Active management is key as currency performance differentiation increases across markets

The opinions expressed are as of March 2011 and may change as subsequent conditions vary

Disclosures

40

Historical Data: BlackRock Emerging Markets Debt Composite

* Total firm assets for 2003 and 2004 have been revised from amounts previously reported due to inclusion of assets that have been excluded based on the firm definition in Note 1. Such changes are deemed insignificant.BlackRock, Inc. has prepared and presented this report in compliance with the performance standards of the Global Investment Performance Standards (GIPS®).

Notes:1. For purposes of compliance with the Global Investment Performance Standards (GIPS®), the “firm” refers to the

investment adviser and national trust bank subsidiaries of BlackRock, Inc., located globally, with the exception of BlackRock Kelso Capital Advisors, LLC. This definition excludes: i) any accounts managed through “wrap fee” or other separately managed account programs, ii) BlackRock subsidiaries that do not provide investment advisory or management services, and iii) the Absolute Return Strategies (funds-of-hedge-funds) business unit under the “BlackRock Alternative Advisers” platformOn December 1, 2009, BlackRock acquired Barclays Global Investors (“BGI”), including BGI bank and investment advisor entities. The firm definition and the assets under management shown above represent all applicable assets of the combined firm. BGI had not claimed compliance with GIPS with the exception of BGI Japan. BlackRock is currently in the process of bringing such assets into compliance as permitted in accordance with the GIPS standards

2. These results have been prepared and presented in compliance with the Global Investment Performance Standards (GIPS®). This composite has been examined from the period April 1, 2001 (Inception) through June 30, 2008. The composite is currently being examined through June 30, 2009. The currency used to calculate performance is US dollars

3. BlackRock uses a time-weighted linked rate of return formula with adjustments for cash flows to calculate rates of return. The current rates of return may not be indicative of future rates of return; other methods may produce different results and the results for individual accounts and for different periods may vary

4. The benchmark index shown is the JPMorgan Emerging Markets Global Bond Index5. Composite dispersion measures represent the consistency of a firm’s composite performance results with respect to the

individual portfolio returns within a compositeComposite dispersion is the square root of the sum of monthly variances of portfolio returns around the composite returns. The monthly variance is the sum of the asset-weighted squared differences between the individual portfolio returns and the composite returnsOnly portfolios that have been included in the composite style for a full month are accounted for in the dispersion calculation. For composites containing only one account, a measure of dispersion is not meaningful unless the composite contains more than one account for each of the presented periods

6. Percentage of Firm Assets and Percentage of Non-Fee Paying Assets are rounded to the nearest whole percent

7. There have been no alterations of the composite due to changes in personnel or other reasons8. When permitted by investment guidelines, futures and options may be used to manage the portfolio’s duration and yield

curve positioning. Futures and options are not used to create leverage in the portfolio9. Gross of fee performance results are presented before management and custodial fees and net of broker fees and

transaction costs. Net performance reflects the deduction of the highest advisor fee that can be charged to any account in the composite. The standard management fee schedule for this strategy for institutional separate accounts in excess of $50mn is as follows: first $50mn of assets, 0.65 of 1%; next $50mn of assets, 0.60 of 1%; remaining assets in excess of $100mn, 0.50 of 1%

10. A complete list and description of all composites maintained by BlackRock and the related performance results are available upon request. Additional information regarding policies for calculating and reporting returns is also available upon requestThe BlackRock Emerging Markets Debt Composite is comprised of all fully discretionary, total return fixed income accounts that invest principally in emerging markets. These portfolios have at least $25mn in assets and are actively managed to exceed the performance of the JPMorgan Emerging Markets Global Bond (or similar) Index. All accounts included in the composite follow a similar investment philosophy. The composite excludes emerging markets bond portfolios that: (i) have gain / loss or other constraints that limit investment flexibility, (ii) are managed to emphasize income, or (iii) are managed against customized or other benchmarksThe creation date of the composite is April 1, 2001. New accounts and accounts that have changed their investment mandate to that of the composite are included in the composite upon the completion of the first full month under management. Closed accounts and accounts that change their investment mandate are included in the composite through the completion of the last full month under management or the last full month under the old strategy. Effective July 1, 2007, the Composite has a Significant Cashflow (SCF) policy to temporarily remove accounts from the Composite. A significant cash flow is defined as a series of cash flows equaling 100% of an account’s net asset value in a calendar month. The account is removed from the Composite as of the month-end prior to the occurrence of the SCF, and is re-entered into the composite at the beginning of the first full month after the occurrence of the SCF, subject to it still being eligible for inclusion. Additional information regarding the treatment of Significant Cash Flows is availableupon request

Calendar year Gross of feecomposite return (%)

Net of feecomposite return (%)

Benchmarkreturn (%)

Number ofportfolios

Composite dispersion (%)

Total assets at end of period (USD millions)

Percentage offirm assets

Percentage of non-feepaying assets

Total firm assets (USD millions)

April 1, 2001–December 31, 2001 8.23 7.83 -0.89 1 0.00 76 <1 0 238,584

2002 14.35 13.79 13.12 1 0.00 65 <1 0 272,8412003 29.92 29.28 25.66 1 0.00 83 <1 0 309,163*2004 13.03 12.47 11.73 1 0.00 76 <1 0 341,397*2005 13.56 13.00 10.73 1 0.00 72 <1 0 443,0322006 11.22 10.67 9.88 1 0.00 80 <1 0 1,078,2172007 5.24 4.72 6.28 1 0.00 82 <1 0 1,278,3332008 -10.00 -10.67 -10.91 1 0.00 111 <1 0 1,251,3702009 27.88 27.07 28.18 1 0.00 311 <1 0 3,290,182

The following notes should be read in conjunction with the attached document:1. Issued by BlackRock Investment Management (UK) Limited (authorised and regulated by the Financial Services Authority). Registered office: 12

Throgmorton Avenue, London, EC2N 2DL. Registered in England No. 2020394. Tel: 020 7743 3000. Tel: 020 7743 3000. For your protection, telephone calls are usually recorded. BlackRock is a trading name of BlackRock Investment Management (UK) Limited. Issued in Switzerland by the representative office BlackRock Asset Management Switzerland Limited, Zurich Branch, Claridenstrasse 25, Postfach 2118 CH-8022 Zürich from where the Company's Prospectus, Simplified Prospectus or Key Investor Information Document, when implemented , Articles of Association, Annual Report and Interim Report are available free of charge. Paying Agent in Switzerland is JPMorgan Chase Bank, National Association, Columbus, Zurich Branch Switzerland, Dreikönigstrasse 21, CH-8002 Zurich.

2. Past performance is not a guide to future performance and should not be the sole factor of consideration when selecting a product. All financial investments involve an element of risk. Therefore, the value of your investment and the income from it will vary and your initial investment amount cannot be guaranteed. Changes in the rates of exchange between currencies may cause the value of investments to go up and down. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time.

3. The fund invests a large portion of assets which are denominated in other currencies; hence changes in the relevant exchange rate will affect the value of the investment.

4. The fund invests in high yielding bonds. Companies who issue higher yield bonds typically have an increased risk of defaulting on repayments. In the event of default, the value of your investment may reduce. Economic conditions and interest rate levels may also impact significantly the values of high yield bonds.

5. The fund invests in economies and markets which may be less developed. Compared to more established economies, the value of investments may be subject to greater volatility due to increased uncertainty as to how these markets operate.

6. Certain developing countries are especially large debtors to commercial banks and foreign governments. Investment in debt obligations (sovereign debt) issued or guaranteed by developing governments or their agencies involve a high degree of risk.

7. The fund invests in fixed interest securities such as corporate or government bonds which pay a fixed or variable rate of interest (also known as the ‘coupon’) and behave similarly to a loan. These securities are therefore exposed to changes in interest rates which will affect the value of any securities held.

8. BlackRock Global Funds (BGF) is an open-ended investment company established in Luxembourg which is available for sale in certain jurisdictions only. BGF is not available for sale in the U.S. or to U.S. persons. Product information concerning BGF should not be published in the U.S. It is recognised under Section 264 of the Financial Services and Markets Act 2000. BlackRock Investment Management (UK) Limited is the UK distributor of BGF. Most of the protections provided by the UK regulatory system, and the compensation under the Financial Services Compensation Scheme, will not be available. A limited range of BGF sub-funds have a distributor status A sterling share class that seeks to comply with UK Distributor Status requirements. Subscriptions in BGF are valid only if made on the basis of the current Prospectus, the most recent financial reports and the Simplified Prospectus which are available on our website. Prospectuses, Simplified Prospectuses and application forms may not be available to investors in certain jurisdictions where the Fund in question has not been authorised. Any research in this document has been procured and may have been acted on by BlackRock Investment Management (UK) Limited for its own purpose. The results of such research are being made available only incidentally. The views expressed do not constitute investment or any other advice and are subject to change. They do not necessarily reflect the views of any company in the BlackRock Group or any part thereof and no assurances are made as to their accuracy.

9. Unless otherwise specified, all information contained in this document is current as at the date on the front page of this presentation.10. No part of this material may be reproduced, stored in retrieval system or transmitted in any form or by any means, electronic, mechanical, recording or

otherwise, without the prior written consent of BlackRock.

THIS MATERIAL IS FOR DISTRIBUTION TO PROFESSIONAL CLIENTS AND SHOULD NOT BE RELIED UPON BY ANY OTHER PERSONS.

Disclosure