Q2 2024 Fund Performance: A Mixed Bag for American Century and BlackRock

American Century Ultra Fund Q2 2024 Commentary

While we believe there's a tendency to think about potential Fed rate changes and economic uncertainty in binary terms, we would argue that individual companies respond differently to macroeconomic conditions. Average Annual Total Returns for Period Ended 6/30/2024 Class Qtr (%) 1 Year (%) 3 Year (%) 5 Year (%) 10 Year (%) Inception (%) Inception Date Gross Expense Ratio (%) Net Expense Ratio (%) Investor 8.87 31.33 8.58 19.20 16.28 12.68 11/2/81 0.95 0.91 I 8.93 31.60 8.80 19.44 16.51 10.12 11/14/96 0.75 0.71 R5 8.92 31.60 8.81 19.44 16.51 19.25 4/10/17 0.75 0.71 R6 8.96 31.80 8.97 19.62 16.69 17.16 7/26/13 0.60 0.56 Russell 1000 Growth Index 8.33 33.48 11.28 19.34 16.33 - - - - Click to enlarge Expense ratio as of the most current prospectus. Historical performance for the R5 Class prior to its inception is based on the performance of I Class shares, which have the same expenses as the R5 Class. Pre-inception differences in R5 Class and I Class performance are based on rounding. The I Class minimum investment amount is$5 million ($3 million for endowments and foundations) per fund. The R5 Share Class is available only to participants in group employer-sponsored retirement plans where a financial intermediary provides record-keeping services to plan participants. The gross expense ratio is the fund's total annual operating costs, expressed as a percentage of the fund's average net assets for a given time period. It is gross of any fee waivers or expense reimbursement. The net expense ratio is the expense ratio after the application of any waivers or reimbursement. This is the actual ratio that investors paid during the fund's most recent fiscal year. Please see the prospectus for more information. The advisor has agreed to waive a portion of the fund's management fee such that the management fee does not exceed 0.91% for Investor, A, C and R Classes, 0.71% for I and R5 Classes, and 0.56% for Y and R6 Classes. The advisor expects this waiver arrangement to continue until February 28, 2025, and cannot terminate it prior to such date without the approval of the Board of Directors. Periods greater than one year have been annualized. Click to enlarge Portfolio Review Stocks posted gains. U.S. large-cap stocks broadly moved higher. Performance continued to be largely driven by the stocks of companies currently benefiting from artificial intelligence and those expected to benefit as AI is incorporated into their businesses. Large-cap growth stocks led performance. Stock gains were mostly due to the outperformance of large-cap stocks, especially select large-cap growth stocks that benefited from optimism about AI. Value stocks struggled across the market-capitalization spectrum, as did mid- and small-cap growth stocks. Consumer discretionary benefited performance. Stock selection in the sector was positive. We did not own any specialty retailers such as The Home Depot, which according to our research, have been hurt by weaker consumer spending. Consumer staples was a top contributor. Stock selection in the sector was favorable. In the consumer staples distribution and retail industry, not owning Target helped performance. Financials weighed on performance. In general, payments stocks such as Mastercard have not kept up with the broader market as we believe these companies will see limited benefit from AI in the near term. Our research also indicated that the large payment processors also face headwinds from diminished cross-border travel and slower business in China. Key Contributors NVIDIA (NVDA). The stock price of this leading maker of graphics processing units continued to soar on the strength of demand for its chips in artificial intelligence applications. In May, NVIDIA reported quarterly revenue and earnings that beat already high analysts' estimates and raised guidance. The Home Depot (HD). High interest rates and a weak housing market have hurt the home improvement retailer's earnings. We did not own Home Depot, which helped performance relative to the benchmark. Alphabet (GOOG). Google parent Alphabet reported strong results with higher earnings, revenues and margins driven by strength across all major business segments. Management attributed results to Alphabet's investment in AI capabilities. Alphabet also announced a large share repurchase program. Key Detractors Lululemon Athletica (LULU). The athletic retailer's stock has struggled after a stellar 2023 on investor concerns about competition and weaker consumer spending. Lululemon's chief product manager resigned, and the company announced a restructuring of its product and brand teams. Mastercard (MA). Mastercard is part of a global duopoly in what we view as a secular growth market. We expect the company to maintain double-digit revenue growth for the foreseeable future. However, the company reported revenue and earnings that disappointed analyst expectations in the latest quarter because of foreign currency exchange effects. salesforce.com (CRM): The Customer Company. The stock of this subscription-based business software company fell sharply after it missed revenue expectations and offered weak guidance. However, we continue to see what we believe are growth and margin expansion opportunities for the company. Notable Trades There were no new purchases during the period. Paycom Software (PAYC). We exited our position in this human resources software company after we continued to be disappointed by the company's continued weak results and poor communication around sales and billing practices and management changes. We put the proceeds into stocks where we have greater confidence in the management team and attractive risk/reward characteristics. NIKE (NKE). We believe NIKE is a dominant global brand but eliminated the position amid management turnover and a multiyear cost-cutting and restructuring plan. We used the sale as a source of funds to purchase stocks that we believed were more compelling. Portfolio Positioning Our process uses bottom-up analysis aimed at identifying large-cap companies that we believe are capable of producing attractive, sustainable earnings growth. We seek to reduce what our research has identified are unintended financial risks and align the portfolio with company-specific risks that we think will be rewarded over time. As a result of this approach, our sector and industry allocations reflect those areas of the market where we believe we are finding opportunities at a given time. We think several secular trends remain in place. We believe market uncertainty will likely remain high as investors shift their focus from the Federal Reserve's (Fed's) interest rate policy to other aspects of the economy such as the pace of growth and corporate earnings. While consensus earnings forecasts for 2024 and 2025 predict solid growth, we believe, even using these lofty projections, that valuations on large-cap stocks look expensive. Having said that, we acknowledge that the earnings of a handful of large growth companies have been excellent, in our view. Add it all up, and we've been looking to identify companies that we think can benefit from enduring, secular business trends while growing earnings rapidly. Examples of the types of companies that we have found attractive include those involved in digital advertising and business transformation, the reliance on the cloud and mobile, process automation and electric vehicle adoption, among others. Corporate earnings often drive returns. Corporate earnings are key in our opinion because we see stock returns as a function of earnings growth often indicating the price investors are willing to pay for those earnings. We've seen some companies recently issuing earnings guidance that have pushed up full-year 2024 estimates. We believe this reflects a stable economy with firms able to navigate the current environment despite significantly higher interest rates. However, because the market is typically forward-looking, trading on expectations of future growth, we expect investors to focus more on 2025 earnings estimates, which we think could be a bit high as future earnings often depend on the broader economy and Fed interest rate policy. We believe the more restrictive the Fed stays, the more difficult the environment will be for future earnings growth. Democratization of technology continues. We recognize the near-term uncertainty about interest rates, corporate earnings and the state of the broader economy. However, consistent with our strategy, we believe it's preferable to focus on companies whose earnings growth is driven by innovation and industry disruption based on our research, rather than depend on the economic cycle. For example, we cite trends in technology infrastructure, software and tools previously only available to the largest enterprises now being made available to smaller businesses and even micro-merchants. We remain focused on individual security selection. While we believe there's a tendency to think about potential Fed rate changes and economic uncertainty in binary terms, we would argue that individual companies respond differently to macroeconomic conditions. Indeed, we've found what we believe have been opportunities in diverse companies developing new products and technologies that are transforming entire sectors and industries. We don't view these as top-down solutions. Rather, we rely on our bottom-up, financial research to identify individual companies that we think are innovating and reimagining their competitive landscape. This is why we remain focused on investing in what we consider dynamic, innovative growth companies with healthy balance sheets and cash flows that can improve throughout the economic cycle. Top 10 Holdings (%) NVIDIA Corp 12.71 Apple Inc (AAPL) 11.56 Alphabet Inc (GOOG) 8.70 Microsoft Corp (MSFT) 7.19 Amazon.com Inc (AMZN) 6.49 Mastercard Inc (MA) 3.35 Meta Platforms Inc (META) 2.95 Eli Lilly & Co (LLY) 2.72 Chipotle Mexican Grill Inc (CMG) 2.33 Applied Materials Inc (AMAT) 2.28 Click to enlarge As of 6/30/2024 The holdings listed should not be considered recommendations to purchase or sell a particular security. Equity holdings are grouped to include common shares, depository receipts, rights and warrants issued by the same company. Fund holdings subject to change. Click to enlarge Data presented reflects past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. To obtain performance data current to the most recent month end, please visit www.americancentury.com/performance. Investment return and share value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains. Returns for periods less than one year are not annualized. For information about other share classes available, please consult the prospectus. There is no guarantee that the investment objectives will be met. Dividends and yields represent past performance and there is no guarantee that they will continue to be paid. You should consider the fund's investment objectives, risks, and charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained at American Century Investments® Home, contains this and other information about the fund, and should be read carefully before investing. The opinions expressed are those of the portfolio investment team and are no guarantee of the future performance of any American Century Investments portfolio. Statements regarding specific holdings represent personal views and compensation has not been received in connection with such views. This information is for an educational purpose only and is not intended to serve as investment advice. The information is not intended as a personalized recommendation or fiduciary advice and should not be relied upon for investment, accounting, legal or tax advice. The Russell 1000® Index measures the performance of the 1,000 largest companies in the Russell 3000® Index (the 3,000 largest publicly traded U.S. companies based on total market capitalization). The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price-to-book ratios and higher forecasted growth values. Created by Frank Russell Company, indices are not investment products available for purchase. Click to enlarge Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. American Century Investments® is a leading asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve health and save lives. It's how we help our clients Prosper With Purpose. Every day people are increasingly focused on investing to make the world a better place for themselves, their families, their organizations, and the world at large. It is possible to live a more meaningful and impactful life and give back something that's more valuable than money. When you invest with us, you can also invest in the future of others and have the potential to impact the lives of millions. That's possible because of the distinct relationship with the Stowers Institute for Medical Research, which owns more than 40% of American Century Investments. Our dividend payments provide the ongoing financial support for the Institute's work of uncovering the causes, treatments and prevention of life-threatening diseases, like cancer. Together we can become a powerful force for good...it's like nothing you've seen before from an investment management firm. Note: American Century Investments is not an analyst publishing actively on Seeking Alpha; rather, our editors excerpt and republish from American Century Investments' publicly-available statements and letters.

American Century Equity Income Fund Q2 2024 Commentary

The portfolio focuses on high-quality stocks with stable revenues, significant overweight in consumer staples and utilities, and selective exposure to regional banks. Average Annual Total Returns for Period Ended 6/30/2024 Class Qtr(%) 1 Year(%) 3 Year(%) 5 Year(%) 10 Year(%) Since Inception(%) Inception Date Gross ExpenseRatio (%) nvestor (MUTF:TWEIX) -1.30 5.20 3.64 5.85 7.59 9.81 8/1/94 0.93 I -1.25 5.28 3.80 6.06 7.79 8.29 7/8/98 0.73 R5 -1.25 5.29 3.81 6.07 7.79 6.90 4/10/17 0.73 R6 -1.09 5.55 3.99 6.23 7.97 8.42 7/26/13 0.58 Russell 3000 Value Index -2.25 12.93 5.14 8.89 8.10 - - - Click to enlarge Data presented reflects past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown. To obtain performance data current to the most recent month end, please visit www.americancentury.com/performance. Investment return and share value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains. Returns for periods less than one year are not annualized. For information about other share classes available, please consult the prospectus. There is no guarantee that the investment objectives will be met. Dividends and yields represent past performance and there is no guarantee that they will continue to be paid. Historical performance for the R5 Class prior to its inception is based on the performance of I Class shares, which have the same expenses as the R5 Class. Expense ratio is as of the fund's current prospectus. The I Class minimum investment amount is$5 million($3 million for endowments and foundations) per fund. The R5 Share Class is available only to participants in group employer-sponsored retirement plans where a financial intermediary provides recordkeeping services to plan participants. Periods greater than one year have been annualized. Click to enlarge Portfolio Review U.S. stocks advanced. During the quarter, broad U.S. equity markets rose amid moderating inflation, strong corporate earnings growth and weakening employment data. While the Federal Reserve kept interest rates steady, policymakers suggested they may cut rates once by year-end. Large-cap growth stocks led U.S. equities higher. While large-cap growth stocks delivered notable gains, value indices declined across the market-capitalization spectrum. Mid- and small-cap growth indices also fell. Financials was an area of strength. Opportune stock picks in the financials sector contributed to the portfolio's outperformance of the benchmark for the period. Strategic picks in the insurance industry, where the portfolio is overweight relative to the benchmark, helped. Information technology contributed. Stock selection in the information technology sector gave the portfolio's performance a boost compared with the benchmark. Avoiding certain names in the benchmark helped results. In particular, not owning Intel, whose foundry business reported weak financial results, aided performance. Industrials pressured performance. The industrials sector, where the portfolio is broadly underweight relative to the benchmark, hampered results. Allocation among names in the ground transportation industry weighed on performance compared with the benchmark. In particular, an overweight holding in Norfolk Southern was a laggard, given that its rail volumes were soft during the period. Key Contributors Roche Holding (OTCQX:RHHBY). Shares of this Switzerland-based pharmaceutical company rallied on news of encouraging clinical trial results for its GLP-1 obesity treatment. Intel (INTC). Lack of exposure to the common stock of this semiconductor company helped relative performance. Intel's shares underperformed after the company provided worse- than-expected financial results for its foundry business. Unilever (UL). Shares of this consumer goods company rose after Unilever released quarterly results that exceeded expectations. The company has increased its product sales volume, which seems to have helped investors gain comfort around the sustainability of Unilever's sales growth. Key Detractors Medtronic (MDT). This medical device stock underperformed on concerns about health care utilization slowing in the future. Medtronic also reported slightly weaker margins for its recent quarter. However, in our view, Medtronic is trading at a very attractive valuation, and the company should be able to expand its margins over time. Norfolk Southern (NSC). This railroad company underperformed after an activist investor was only successful in electing three directors to the board's 13 seats. Norfolk Southern's rail volumes also continued to be soft. Kenvue (KVUE). Shares of this consumer health company underperformed after a corporate shareholder sold a large amount of stock. In addition, Kenvue is facing some temporary headwinds in one of its relatively seasonal businesses, weighing on the earnings potential of that business. Top 10 Holdings (%) As of 6/30/2024 The holdings listed should not be considered recommendations to purchase or sell a particular security. Equity holdings are grouped to include common shares, depository receipts, rights and warrants issued by the same company. Fund holdings subject to change. Click to enlarge Notable Trades Microchip Technology (MCHP). We initiated a position in this convertible security because we believe it offers an attractive risk/reward profile. In our view, the company's actions, such as its recent cost-cutting initiatives as revenue and earnings appear to be bottoming, should result in relatively stable margins. Analog Devices (ADI). We initiated a position in this semiconductor company. Recent weakness in automobile and industrial demand weighed on its shares, providing an entry point that we deemed attractive. We think the company is high quality and should benefit from higher electric vehicle and advanced driver-assistance systems adoption. Texas Instruments (TXN). We exited our position in this large analog supplier. We think its risk/reward profile is less attractive, and the company's aggressive capacity expansion plan over the next few years could weigh on its free cash flow and margin. Chubb (CB). After years of strong relative outperformance, we viewed the valuation of this insurance company as less attractive. In turn, we exited the position and used the proceeds to fund other positions with risk/reward profiles that we deemed more attractive. Portfolio Positioning The portfolio seeks to invest in companies where we believe the valuation does not reflect the quality and normal earnings power of the company. We believe this can result in a portfolio with less volatility. Our process is based on individual security selection, but broad themes have emerged. Higher-quality stocks may offer resilience. We believe that, while central banks may enact small cuts to interest rates if inflation continues to subside, the economy should still experience the lagging effects of elevated rates over the next year. That, along with continuing geopolitical risks, may contribute to an uncertain economic environment for investors. Against this backdrop, we continue to focus on companies that we view as higher quality with stable revenues and profits, low indebtedness, stable cash flows and predictable business models that are less sensitive to economic conditions. Opportunities in consumer staples and utilities. We maintain a significant overweight in consumer staples. Even as consumers grapple with economic pressures like inflation, they still have to buy the necessities sold by companies in the defensive consumer staples sector. We also remain keen on utilities for their defensive nature and attractive valuations, as well as the potential for new electricity demand from data centers supporting the computing power of artificial intelligence. Remaining selective in regional banks. While bank valuations are historically low, regional banks continue to face headwinds to net interest income from the higher cost of deposits, while loan growth is subdued. Also, regulatory requirements for capital and liquidity have been rising since the bank failures last year. Despite the challenges to regional banks, we continue our focus on attractively valued equities in the financials sector that generate consistent returns from diverse sources that also maintain strong capital and liquidity ratios. Few opportunities in consumer discretionary and real estate. While consumer activity has provided significant support to the economy, recent economic reports point to a slowdown in spending. That may put pressure on consumer discretionary stocks, a sector where we already find it difficult to identify companies with durable business models. Within the real estate sector, our metrics continue to show that most equities remain overvalued. Our exposure to the communication services sector remains limited. The portfolio is underweight relative to the benchmark in the communication services sector. To us, many companies in this sector have volatile business models and high levels of debt, which prevents them from meeting our investment criteria. You should consider the fund's investment objectives, risks, and charges and expenses carefully before you invest. The fund's prospectus or summary prospectus, which can be obtained at American Century Investments® Home, contains this and other information about the fund, and should be read carefully before investing. The fund invests in convertible securities, which may be affected by changes in interest rates, the credit of the issuer and the value of the underlying common stock. The fund also may invest in foreign securities, which can be riskier than investing in U.S. securities. The opinions expressed are those of the portfolio investment team and are no guarantee of the future performance of any American Century Investments portfolio. Statements regarding specific holdings represent personal views and compensation has not been received in connection with such views. This information is for an educational purpose only and is not intended to serve as investment advice. The information is not intended as a personalized recommendation or fiduciary advice and should not be relied upon for investment, accounting, legal or tax advice. The Russell 3000® Value Index measures the performance of those Russell 3000® Index companies(the 3,000 largest U.S. companies based on total market capitalization) with lower price-to-book ratios and lower forecasted growth values. The Russell 3000® Index is a trademark/service mark of the Frank Russell Company. Russell® is trademark of the Frank Russell Company. IN-FLY-92059 American Century Investments Services, Inc., Distributor©2024 American Century Proprietary Holdings, Inc. All rights reserved. Non-FDIC Insured May Lose Value No Bank Guarantee Click to enlarge Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks. American Century Investments® is a leading asset manager focused on delivering investment results and building long-term client relationships while supporting research that can improve health and save lives. It's how we help our clients Prosper With Purpose. Every day people are increasingly focused on investing to make the world a better place for themselves, their families, their organizations, and the world at large. It is possible to live a more meaningful and impactful life and give back something that's more valuable than money. When you invest with us, you can also invest in the future of others and have the potential to impact the lives of millions. That's possible because of the distinct relationship with the Stowers Institute for Medical Research, which owns more than 40% of American Century Investments. Our dividend payments provide the ongoing financial support for the Institute's work of uncovering the causes, treatments and prevention of life-threatening diseases, like cancer. Together we can become a powerful force for good...it's like nothing you've seen before from an investment management firm. Note: American Century Investments is not an analyst publishing actively on Seeking Alpha; rather, our editors excerpt and republish from American Century Investments' publicly-available statements and letters.

BlackRock Advantage Large Cap Value Fund Q2 2024 Commentary

Trend-based sentiment insights drove returns, as they correctly captured the artificial intelligence theme. Average annual total returns(%) as of 6/30/24 2Q24 (not annualized) YTD (not annualized) 1 Year 3 Years 5 Years 10 Years Institutional -1.19 8.48 17.02 6.71 9.84 9.15 Investor A (Without Sales Charge) -1.25 8.36 16.74 6.45 9.57 8.86 Investor A (With Sales Charge) -6.44 2.67 10.61 4.55 8.39 8.28 Morningstar Large Value Category Avg. -1.44 7.33 14.82 6.46 9.86 8.44 Russell 1000 Value2 -2.17 6.62 13.06 5.52 9.01 8.23 Click to enlarge The fund's annual total returns prior to June 12, 2017, reflect a different investment strategy. Expenses for Institutional shares: Total 0.70%; Net, Including Investment Related Expenses (dividend expense, interest expense, acquired fund fees and expenses and certain other fund expenses) 0.54%. For Investor A shares: Total 0.97%; Net, Including Investment Related Expenses 0.79%. Institutional and Investor A shares have contractual waivers with an end date of 06/30/2025 terminable upon 90 days notice. For certain share classes, BlackRock may voluntarily agree to waive certain fees and expenses in which the adviser may discontinue at any time without notice. Expenses stated as of the fund's most recent prospectus. Data represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. All returns assume reinvestment of dividends and capital gains. Current performance may be lower or higher than that shown. Refer to Investment Management & Financial Services | BlackRock for most recent month-end performance. Investment returns reflect total fund operating expenses, net of all fees, waivers and/or expense reimbursements. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an unmanaged index. Share classes have different sales charges, fees and other features. Returns with sales charge reflect deduction of current maximum initial sales charge of 5.25% for Investor A shares. Institutional shares have no front- or back-end load. Institutional shares have limited availability and may be purchased at various minimums. See prospectus for details. Net Expenses Excluding Investment Related Expenses for Institutional shares: 0.54%; for Investor A shares: 0.79%. Click to enlarge Commentary as of 06/30/24 The fund posted returns of -1.19% (Institutional shares) and -1.25% (Investor A shares, without sales charge) for the second quarter of 2024. Sentiment-related insights were the top contributor to performance, followed by macro-related measures. Within fundamental insights, stock selection driven by valuation insights worked well. From a sector-positioning perspective, the fund remained largely neutral. However, there were slight overweight exposures to the information technology and consumer discretionary sectors, and slight underweight allocations to the materials and consumer staples sectors. ★★★★ Morningstar Overall TM Institutional shares rated against 1,099 Large Value Funds, as of 6/30/24, based on risk-adjusted total return. Ratings are determined monthly and subject to change. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.†† Click to enlarge Top 10 holdings(%) Berkshire Hathaway (BRK.A) 3.00 JPMorgan Chase (JPM) 2.43 Comcast (CMCSA) 1.92 Medtronic (MDT) 1.65 ExxonMobil (XOM) 1.64 Eaton Corporation Plc (ETN) 1.60 Gilead Sciences (GILD) 1.59 Micron Technology Inc (MU) 1.35 Pfizer (PFE) 1.30 Lockheed Martin Corporation (LMT) 1.30 Click to enlarge Contributors Trend-based sentiment insights drove returns, as they correctly captured the artificial intelligence theme. This was evident with overweight positions in IT stocks, notably in the semiconductors & semiconductor equipment and software industries. Measures focused on social media "likes" motivated a successful overweight exposure to the consumer discretionary sector. Insights looking at the discrepancy between bond default risk and equity market optimism correctly positioned the fund around IT stocks. Macro-related insights that drove positioning across the health care sector based on the weight-loss drug theme were also beneficial. Detractors Fundamental measures struggled during the quarter. Specifically, positioning in the industrials sector proved wrong-footed, particularly in the machinery and building products industries. This was driven by defensive-quality-related measures looking at balance sheet strength. Fundamental quality insights measuring companies' strong cash flow over total assets struggled to position the fund around stocks in the financials sector. Select valuation measures also detracted. Further insight Despite a pullback in April, driven by inflation surprises and a short-lived rate spike, equities again continued their ascent, driven by persistent returns of the AI theme. Strong earnings from AI leaders in May ignited another rally as investor focus shifted to earnings momentum. This highlighted a more discriminatory tone as investors chased fundamental strength. Cyclical stocks struggled amid softening macroeconomic data, with economic surprises falling to levels last observed in 2022. Unsurprisingly, IT performed best as seven of 11 global sectors posted negative returns. As a result, growth outperformed value as an investment style while small-cap equities lagged. Investment approach Invests at least 80% of its assets in equity securities or other financial instruments that are components of, or have market capitalizations similar to, the securities included in the Russell 1000 Value® Index. Important Risks: The fund is actively managed and its characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. Stock values fluctuate in price so the value of your investment can go down depending on market conditions. The fund may use derivatives to hedge its investments or to seek to enhance returns. Derivatives entail risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. The opinions expressed are those of the fund's portfolio management team as of June 30, 2024, and may change as subsequent conditions vary. Information and opinions are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings. 1 Class R shares are sold to a limited group of investors, including certain retirement plans. See prospectus for details. 2 Russell 1000 Value Index comprises the large-cap value segment of U.S. equities. It is a subset of the Russell 1000 Index that consists of those Russell 1000 securities with lower price-to-book ratios and lower expected growth values.†† The Morningstar Rating TM for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed products monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. The fund was rated against the following numbers of U.S.-domiciled Large Value funds over the following time periods:1,099 in the last 3 years, 1,035 in the last 5 years and 809 in the last 10 years. With respect to these Large Value funds, the fund received a Morningstar Rating of 3, 3 and 4 stars for the 3-, 5- and 10-year periods, respectively. Other classes may have different performance characteristics. You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the fund and are available, along with information on other BlackRock funds, by calling 800-882-0052 or from your financial professional. The prospectus should be read carefully before investing. ©2024 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners. Prepared by BlackRock Investments, LLC, member FINRA. Not FDIC Insured* May Lose Value* No Bank Guarantee 07/24- Advantage Large Cap Value Fund Click to enlarge Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. This post originally appeared on BlackRock. BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.

BlackRock Basic Value VI Fund Q2 2024 Commentary

The largest contributor to relative performance was stock selection in the IT sector, specifically in the technology hardware, storage & peripherals industry. Average annual total returns (%) as of 6/30/24 2Q24 (not annualized) YTD (not annualized) 1 Year 3 Years 5 Years 10 Years Class I (Without Sales Charge)1 -1.43 6.18 12.96 6.75 9.94 7.60 Morningstar Large Value Category Avg. -1.53 7.33 14.54 6.52 9.66 8.21 Russell 1000 Value2 -2.17 6.62 13.06 5.52 9.01 8.23 Click to enlarge Data quoted represents past performance and is no guarantee of future results. Investment returns and principal values may fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown, which assumes reinvestment of dividends and capital gains. Insurance fees and charges are not included. Index performance is shown for illustrative purposes only. It is not possible to invest directly in an unmanaged index. Expenses for Class I shares: Net, Excluding Investment Related Expenses 0.71%. For Class II shares: Net, Excluding Investment Related Expenses 0.88%. For Class III shares: Net, Excluding Investment Related Expenses 0.99%. Refer to (800)-441-7762 for most recent month-end performance. Click to enlarge Commentary as of 06/30/24 The fund posted a return of -1.43% (Class I shares) for the second quarter of 2024. The fund outperformed its benchmark, led by security selection in the information technology and industrials sectors. Allocation decisions in the consumer staples and health care sectors hindered relative returns. Due to a combination of trading activity and market movements, allocations to the communication services, health care, and IT sectors increased, while exposures to the consumer staples, financials, and industrials sectors decreased. Top 10 holdings (%) Citigroup (C) 3.45 Wells Fargo (WFC) 3.30 L3harris Technologies Inc (LHX) 2.55 First Citizens Bancshares Inc Class (FCNCA) 2.55 Cardinal Health Inc (CAH) 2.51 Fidelity National Information Serv (FIS) 2.49 Shell Plc (SHEL) 2.42 General Motors (GM) 2.38 Bp Adr Each Representing Six Plc 2.35 Rtx Corp (RTX) 2.32 Click to enlarge Contributors The largest contributor to relative performance was stock selection in the IT sector, specifically in the technology hardware, storage & peripherals industry. Stock selection in the industrials sector, notably in the aerospace & defense industry, was beneficial. Security selection in the energy sector had a favorable impact, particularly in the oil, gas & consumable fuels industry. Other contributors included security selection in the consumer discretionary sector. Detractors Asset allocation decisions in the consumer staples and health care sectors hindered relative performance the most, particularly in the consumer staples distribution & retail industry. Investment decisions in the health care sector negatively impacted relative returns, notably in the health care equipment & supplies industry. Investment approach The fund seeks capital appreciation and, secondarily, income by investing in securities, primarily equities, that fund management believes to be undervalued. Further insight The U.S. has tools for economic growth within its resilient consumer base and productivity growth from generative artificial intelligence. Late-cycle risks remain, such as persistent inflation/rates, a weakening U.S. balance sheet, and a deteriorating U.S. consumer, particularly within lower income households. Valuations look stretched due to large technology companies "pulling" indexes and portfolios to be more growth-oriented. Value earnings growth is underappreciated, we believe, and may offer an attractive risk-return skew, given differences in expectations. We have leaned into more defensive areas, such health care, due to attractive valuations relative to history, while we emphasize stock-specific risks in more cyclical areas, such as financials. Important Risks: The fund is actively managed and its characteristics will vary. Holdings shown should not be deemed as a recommendation to buy or sell securities. Stock and bond values fluctuate in price so the value of your investment can go down depending on market conditions. International investing involves special risks including, but not limited to political risks, currency fluctuations, illiquidity and volatility. These risks may be heightened for investments in emerging markets. Derivatives entails risks relating to liquidity, leverage and credit that may reduce returns and increase volatility. The opinions expressed are those of the fund's portfolio management team as of June 30, 2024, and may change as subsequent conditions vary. Information and opinions are derived from proprietary and nonproprietary sources deemed by BlackRock to be reliable, are not necessarily all-inclusive and are not guaranteed as to accuracy. BlackRock provides compensation in connection with obtaining or using third-party ratings and rankings. 1 All data refers to the underlying variable insurance product and not the retail mutual fund of the same name. All returns assume reinvestment of all dividends and capital gains distributions. Total investment returns exclude separate account fees, insurance-related fees and expenses. See the funds prospectus and the prospectus for the applicable variable insurance product for more information including fees and expenses. 2 The Russell 1000 Value Index comprises the large-cap value segment of U.S. equities. You should consider the investment objectives, risks, charges and expenses of the fund carefully before investing. The prospectus and, if available, the summary prospectus contain this and other information about the fund and are available, along with information on other BlackRock funds, by calling 800-882-0052 or from your financial professional. The prospectus should be read carefully before investing. ©2024 BlackRock, Inc. or its affiliates. All Rights Reserved. BLACKROCK is a trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners. Prepared by BlackRock Investments, LLC, member FINRA. Not FDIC Insured * May Lose Value * No Bank Guarantee 07/24 - Basic Value V.I. Fund Click to enlarge Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. This post originally appeared on BlackRock. BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.

BlackRock Innovation And Growth Term Trust Q2 2024 Commentary

The investment outlook remains positive, focusing on strong corporate earnings and potential economic growth, despite recent market volatility and economic normalization. Performance Summary** 1 year Since Inception Annualized Q2 2024 Total return (NAV) -2.9% -17.1% -6.2% Total return (market price) 0.6% -20.0% -9.0% MSCI USA SMID Growth Call Overwrite Index 9.3% 5.9% -3.9% Russell 2500 Growth Index 9.0% -1.8% -4.2% Click to enlarge MSCI USA SMID Growth Call Overwrite Index: An index that incorporates an option overlay component on the MSCI USA SMID Growth Index with a 25% overwrite level. Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the US equity universe. ** Source: Morningstar & BlackRock as of 6/30/2024. The Trust's inception date was 3/29/21. Returns are shown net of advisory fees paid by the Trust and net of the Trust's operating fees and expenses. As of the Trust's annual report dated 12/31/2023, the Trust's gross expense ratio is 1.44%. Investors who purchase shares of the Trust through an investment adviser or other financial professional may separately pay a fee to that service provider. Past performance is not indicative of future results. The performance quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor's shares may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted, and numbers may reflect small variances due to rounding. Refer to BlackRock.com for current month end performance. Click to enlarge Performance During the second quarter, shares of NYSE:BIGZ underperformed the Russell 2500 Growth Index on a market price basis, returning- 9.0% vs- 4.2% for the index. On an NAV basis, BIGZ returned- 6.2%, underperforming the Russell 2500 Growth Index. Contributors to Performance ** The largest contributor to performance during the quarter was stock selection in the communication services sector, particularly within the interactive media and services industry. In this space, Pinterest Inc. (PINS) appreciated over during the period. Elsewhere in Communication services, returns were bolstered by stock selection in both the wireless telecom and media industries, as private holding Loft Orbital Solutions Inc. was revalued upward and public holding Liberty Media Corp. appreciated more during the period* In Financials, the Trust achieved outperformance across several industries by carrying underweights in poor performing areas and through strong stock selection in the lone overweight, the capital markets industry. In the information technology space, excellent results in the semi-conductor space were offset by some weakness in the IT services area. Within semis, Trust holdings Monolithic Power Systems, Inc. (MPWR) and ASM International NV (OTCQX:ASMIY) both had strong returns during the quarter, fueled by continued excitement around artificial intelligence. Private holdings PSI Quantum Corp. was also revalued upward, further enhancing returns for the Trust. ** References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. BlackRock may or may not own the securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held. The holdings mentioned in the commentary represent the largest contributors and detractors to performance relative to the benchmark. They are not representative of all underlying investments made by the manager on behalf of the strategy, and it should not be assumed that the manager will invest in these investments or in comparable investments, or that any future investments made by the manager will be successful. To the extent that these investments prove to be profitable, it should not be assumed that the strategy will be profitable or will be as profitable. **Source: BlackRock 6/30/2024 Click to enlarge Detractors from Performance* The largest detractor from returns during the quarter was stock selection in the healthcare sector, which was most notable across the healthcare equipment and supplies space. Here, Align Technology Inc. (ALGN), a marker of clear plastic teeth aligners, declined after posting negative quarterly results and highlighting softening orthodontic case starts in the industry. Healthcare positions in the life sciences tools & services industry also declined. Holdings in Repligen Corp. (RGEN), West Pharmaceutical Services Inc. (WST) and Charles River Laboratories International Inc. (CRL) all posted negative returns during the quarter. Results in the real estate sector also weighed on performance during the quarter, mostly within the real estate management and development space. Here, portfolio company CoStar Group Inc. (CSGP) declined- 23.3% after missing expectations on earnings and reporting pressure on profit margins. Stock selection in the industrials sector also detracted from performance during the period. This was most notable in the ground transportation industry where trucking company Saia Inc. (SAIA) reported softer than expected earnings, some weather-related operational disruptions and weaker than anticipated seasonal shipments during the prior quarter. Our energy and utilities companies also detracted during the second quarter. *References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as recommendations to purchase or sell such securities. BlackRock may or may not own the securities referenced and, if such securities are owned, no representation is being made that such securities will continue to be held. The holdings mentioned in the commentary represent the largest contributors and detractors to performance relative to the benchmark. They are not representative of all underlying investments made by the manager on behalf of the strategy, and it should not be assumed that the manager will invest in these investments or in comparable investments, or that any future investments made by the manager will be successful. To the extent that these investments prove to be profitable, it should not be assumed that the strategy will be profitable or will be as profitable. Click to enlarge Portfolio Positioning As of period-end, the portfolio's largest overweight allocations relative to the Russell 2500 Growth Index were the information technology, communication services and consumer discretionary sectors. The largest underweight allocations were in the healthcare, consumer staples and financials sectors. As a result of portfolio trading and market movements during the first half of the year, the portfolio experienced increasing allocations to the industrials, communication services and consumer discretionary sectors, and decreasing allocations to both the information technology and healthcare sectors. Investment Outlook Large-cap growth equities posting strong gains in each of the first two quarters to start the year. In contrast, Mid-cap growth and small-cap growth equities have achieved more modest year-to-date gains respectively. In addition, first quarter appreciation in the small and mid-cap areas being partially offset by second quarter price declines. In our view, the market rally has continued to be propelled by two primary factors: [1] relatively strong corporate earnings, especially among a small group of mega-cap stocks and [2] continued investor expectations for a"Goldilocks" outcome of positive economic growth, easing inflation and flexibility for future Fed interest rate cuts. Despite recent signs of economic growth moderating and the U.S. job market decelerating, we view these developments as a normalization of the economic backdrop, and not indicative of rising recession risks. In alignment with our investment philosophy, our portfolios continue to seek exposure to businesses with attractive and growing end markets. A swell in datacenter capital expenditures is one of the important points we think about in our research pipeline, while we continue to investigate investment opportunities across a host of other sectors, industries, and business models. The goal of our research process is to identify actionable investment ideas to help understand a company's potential earnings growth, then compare those prospects to consensus expectations. This discipline aligns our investment decision-making alongside the time horizon of company management teams and helps to anchor our investment convictions during bouts of volatility. BIGZ Portfolio Statistic Highlights 1See page 7 for further information. Distribution rate is calculated by annualizing the Trust's latest declared regular distribution on 6/30/2024 and dividing that number by the Trust's market price as of 6/30/2024. The distribution rate is calculated net of expenses. BIGZ's estimated source of distributions paid during the current fiscal year to date is 100% return of capital as of 6/30/2024. The amounts and sources of distributions reported are only estimates and are not provided for tax reporting purposes. Past performance does not guarantee or indicate future results. 2As of 6/30/2024. Source BlackRock. Total BIGZ estimated source of distributions paid since inception are 100% return of capital as of 6/30/2024. See page 7 for further information. Past performance does not guarantee or indicate future results. 3As of 6/30/2024. Source BlackRock. BIGZ seeks to invest in growth companies and earnings growth is a measure that is commonly used to measure growth. "Earnings growth rate" represents the 5-year historical change in profit expressed in annualized terms for the public companies in the portfolio. Past performance does not guarantee or indicate future results. 4As of 6/30/2024. See page 3 for further details Click to enlarge Option activity* BIGZ Options % of portfolio overwritten 11.8% % out of the money 6.0% Days average maturity 54 Days Click to enlarge * Definitions: "% of portfolio overwritten:" Represents the amount of the portfolio represented by the notional value of covered call options. These options generate cash flow via a premium received, potentially offsetting the impact of a specific stock price drop. "% out of the money:" Represents the amount in which the option's strike price is higher than the current market price. If a covered stock's price rises above the strike price, it will limit the profitability of that holding to the amount of that strike price. "Average maturity:" The average length of the option contracts in the Trust. Source: BlackRock as of 6/30/2024. Click to enlarge The Trust utilizes an option writing (selling) strategy in seeking to manage risk, generate current gains from options premiums, and enhance risk-adjusted returns. The team maintained the call option writing strategy during the period. The option strategy employs a dynamic call writing process focused on single stocks to allow for the combination of cash flow and capital appreciation. This includes using multiple option positions diversified across strike prices and expiration dates while taking into account changes in market conditions affecting option pricing. Given the extreme weakness in the small and mid-cap innovation market, the percentage of the portfolio overwritten remained low at the end of the quarter, which we believe positions the strategy for greater potential upside in coming quarters These call options were typically written at prices above the prevailing market prices. Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors. This post originally appeared on BlackRock. Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks. BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that serve them throughout their lives by making investing easier and more affordable.