Fixed income times have changed. We live in a different world than the one we lived in 5 years ago. Relative values across fixed income securities such as government bonds, corporate bonds, and sovereign debt change quickly, requiring active monitoring and oversight of assets, and tactical asset allocation.

Furthermore, every investor is different. Your needs are different from those of your neighbour and that should be reflected in your fixed income investments. A very conservative investor will likely have a different portfolio than that of an investor seeking high income.

iShares fixed income models were designed with that in mind. Diversified, tactically managed fixed income models, that seek to provide a range of potential yield and risk levels. The models are comprised of iShares ETFs and rebalanced on a quarterly basis based on current market conditions. The models are dynamic and yield targets are analyzed on an ongoing basis and adjusted as a result of what’s really going on in the market and how feasible it is to achieve low, moderate or high yield. Although the models have particular yield objectives, which are based on past performance, the yield objectives are not predictive of future performance. There is no guarantee that any model will achieve their objectives.

Conservative Income

Government 53.0% Corporate 47.0% US Corporate 0.0% International 0.0%

Moderate Income

Government 8.0% Corporate 87.0% US Corporate 5.0% International 0.0%

High Income

Government 0.0% Corporate 40.0% US Corporate 30.0% International 30.0%