FIXED INCOME LIQUIDITY EQUITIES ALTERNATIVES BLACKROCK SOLUTIONS

Dividend Investing

NOT FDIC INSURED MAY LOSE VALUE NO BANK GUARANTEE About the Dividend Getting Back to Basics AchieversTM Universe1 As investors have witnessed firsthand in recent years, the financial markets can rise and fall with little warning. Because of these Over 25% of the companies fluctuations, it makes sense to invest in companies that have weathered the market's various cycles over the long term. But the challenge in the Dividend AchieversTM remains—how do you determine which companies are truly standouts? universe have increased their dividends a minimum There are numerous ways to gauge a company's viability, but one of the more effective methods is to examine its dividend history. Companies of 30 consecutive years. that have paid a steady dividend over time are typically those with capable management teams, solid fundamentals and healthy balance sheets. During the past 10 years, TM these companies reported The BlackRock Dividend Achievers Fund seeks to invest in these types of companies, by combining the strong research capabilities of Mergent® an 11.4% average annual with a time-tested quantitative investment strategy. compound dividend growth rate, compared to only 7.2% The Mergent Dividend AchieversTM Universe for the S&P 500 Index. Mergent, Inc. (formerly a division of Moody's Investors Service) has been Only 3% of approximately collecting and delivering financial information since 1900. Mergent's research capabilities are extensive—its databases contain key financial, 10,000 North American fundamental and descriptive data for thousands of companies, both listed companies satisfy domestic and non-U.S. based. Mergent's requirements to Mergent's Dividend AchieversTM universe represents what BlackRock TM be Dividend Achievers . believes is the upper echelon of dividend-paying companies. The list is a selection of publicly traded stocks that have increased their dividends for the past 10 or more consecutive years. These companies are committed to paying dividends and have demonstrated the ability to increase dividend payments over time, through volatile markets and challenging economic conditions.

New Tax Laws Favor Dividend Paying Stocks. In 2003, Congress passed the Jobs and Growth Tax Relief Act of 2003, lowering the long-term capital gains tax rate on qualified dividend income (QDI) to 15% through 2008. (It also allows low income tax payers to pay a 5% tax rate on QDI through 2007, and 0% in 2008.) Prior to the Tax Act passage, investors were taxed on dividends from stocks and mutual funds at their ordinary income tax rate, which meant that investors in the highest tax bracket were taxed on dividends at the rate of 38.6% (currently 35%). This makes investing in dividend- paying stocks a more attractive opportunity. Perhaps one of the most compelling reasons to invest in dividend-paying stocks is that over the long term, investing in stocks that pay consistent dividends can enhance total return. In fact, dividends have provided approximately 4.3 percentage points, or more than 40% of the market's average annual return of 10.4% since 1926, according to Ibbotson (as measured by the S&P 500 Index).

Source: Ibbotson. The chart above depicts the average annual total return of the S&P 500 Index (both including and excluding dividends), from January 1, 1926 through September 30, 2004. Performance shown is not indicative of any fund. For information about the BlackRock Dividend Achievers Fund, please call 888-825-2257.

Why BlackRock Dividend AchieversTM Fund Investment Process The BlackRock Dividend AchieversTM Fund combines Mergent's vast research capabilities with a risk-managed, quantitative investment process. Using a proprietary computer model, the portfolio managers screen the companies in the Dividend AchieversTM list, seeking to identify those with the most favorable risk/reward characteristics. • Portfolio of high-quality companies • Proprietary quantitative process, with added emphasis on risk management • Convenient access to some of the most committed dividend-paying stocks in the United States The portfolio management team takes an active role in the fund's quantitative investment process. This includes: • Monitoring the portfolio for fundamental changes • Reviewing the computer models for predictive consistency • Rebalancing the portfolio on a bi-weekly basis Fund Symbols About BlackRock Investor A ...... BDAVX Since 1988, BlackRock has built a reputation as a world class provider of Investor B ...... BDABX financial and risk management expertise to institutions around the world. Investor C ...... BDACX Today, we manage approximately $323 billion (as of September 30, 2004) in Service ...... BDASX assets for many of the most demanding investors-including endowments Institutional ...... BDAIX and foundations, hospitals, corporate and public treasurers, plan sponsors, and high net worth individuals. We also provide risk management services to portfolios with aggregate assets of more than $2.5 trillion. This same expertise is available to individual investors through the BlackRock funds. The BlackRock funds provide the ease of fund investing with the resources of a world class institutional asset manager. Individual investors can benefit from the same active portfolio management, in-depth investment research capabilities, and state-of-the-art technology that our institutional clients have enjoyed for years.

You should consider the investment objectives, risks, charges and expenses of the fund(s) carefully before investing. For complete information about any of the BlackRock funds, including objectives, risks, charges and expenses, you may obtain a prospectus from BlackRock Distributors, Inc., 760 Moore Road, King of Prussia, PA 19406. 888-825-2257. Please read the prospectus carefully before you invest or send money. The fund may, from time to time, invest a substantial portion of its assets in the securities of issuers in any single industry or sector of the economy. The fund's use of derivatives may reduce the fund's returns and/or increase volatility. Higher than normal 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. Distributed by BlackRock Distributors, Inc. Affiliates of PNC Bank receive compensation from BlackRock funds for providing investment advisory and other services. Mutual fund shares are not deposits or obligations of, or guaranteed or endorsed by, any bank, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other agency. 1Mergent’s Dividend AchieversTM Guide, 2004. FOR MORE INFORMATION 888-825-2257 www.blackrock.com DA-BRO 4Q04