BlackRock LifePath Index 2020 Fund

C000101138 Fund Overview

BlackRock LifePath Index 2020 Fund is a US mutual fund managed by BlackRock Funds III, categorised as Target Date / Glide Path Allocation. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: BlackRock Funds III
• Category: Target Date / Glide Path Allocation
• Assets under management: $4.89B
• SEC CIK: 0000893818
• SEC series ID: S000032776
• Share class ID: C000101138

C000101138 Investment Objective and Strategy

BlackRock LifePath Index 2020 Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by BlackRock Funds III.

Investment objective

The investment objective of BlackRock LifePath ® Index 2020 Fund (“LifePath Index 2020 Fund” or the “Fund”), a series of BlackRock Funds III (the “Trust”), is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath Index 2020 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

Principal investment strategy

LifePath Index 2020 Fund is a feeder fund that invests all of its assets in the Master Portfolio, a series of Master Investment Portfolio (MIP) with a substantially identical investment objective, which allocates and reallocates its assets among a combination of equity and bond index funds and money market funds (the Underlying Funds) in proportions based on its own comprehensive investment strategy. All investments are made at the Master Portfolio level. This structure is sometimes called a master/feeder structure. The Funds investment results will correspond directly to the investment results of the Master Portfolio. For simplicity, this prospectus uses the name of the Fund or the term Fund (as applicable) to include the Master Portfolio. LifePath Index 2020 Fund seeks to provide for retirement outcomes based on quantitatively measured risk.

BFA employs a multi-dimensional approach to assess risk for LifePath Index 2020 Fund and to determine LifePath Index 2020 Funds allocation across asset classes. As part of this multi-dimensional approach, BFA aims to quantify risk using proprietary risk measurement tools that, among other things, analyze historical and forward-looking securities market data, including risk, asset class correlations, and expected returns. Under normal circumstances, the Fund intends to invest primarily in affiliated open-end index funds and affiliated exchange-traded funds (ETFs). LifePath Index 2020 Fund will invest, under normal circumstances, at least 80% of its assets in securities or other financial instruments that are components of or have economic characteristics similar to the securities included in its custom benchmark index, the LifePath Index 2020 Fund Custom Benchmark.

LifePath Index 2020 Fund is designed for investors expecting to retire or to begin withdrawing assets around the year 2020. The Fund employs a passive management approach, attempting to invest in a portfolio of assets whose performance is expected to match approximately the performance of the Funds custom benchmark index. As of March 31, 2018, the Fund held approximately 54% of its assets in Underlying Funds designed to track particular equity indexes, 46% of its assets in Underlying Funds designed to track particular bond indexes and the remainder of its assets in Underlying Funds that invest primarily in money market instruments. Certain Underlying Funds may invest in real estate investment trusts (REITs), foreign securities, emerging market securities, below investment-grade bonds and derivative securities or instruments, such as options and futures, the value of which is derived from another security, a currency or an index, when seeking to match the performance of a particular market index.

The Fund and certain Underlying Funds may also lend securities with a value up to 33 1 / 3 % of their respective total assets to financial institutions that provide cash or securities issued or guaranteed by the U.S. Government as collateral. Under normal circumstances, the asset allocation will change over time according to a predetermined glide path as the Fund approaches its target date. The glide path below represents the shifting of asset classes over time. As the glide path shows, the Funds asset allocations become more conservative prior to retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of the Fund, which may be a primary source of income after retirement. LifePath Index 2020 Fund is one of a group of funds referred to as the LifePath Index Funds, each of which seeks to provide for retirement outcomes based on quantitatively measured risk that investors on average may be willing to accept given a particular time horizon.

The following chart illustrates the glide path the target allocation among asset classes as the LifePath Index Funds approach their target dates: The following table lists the years until retirement and the target allocation among asset classes for each of the LifePath Index Funds as set out in the above chart: Name of Fund Years Until Retirement Equity Index Funds (includes REITs) Fixed- Income Index Funds BlackRock LifePath Index 2060 Fund 42 99% 1% BlackRock LifePath Index 2055 Fund 37 99% 1% BlackRock LifePath Index 2050 Fund 32 99% 1% BlackRock LifePath Index 2045 Fund 27 96% 4% BlackRock LifePath Index 2040 Fund 22 89% 11% BlackRock LifePath Index 2035 Fund 17 80% 20% BlackRock LifePath Index 2030 Fund 12 70% 30% BlackRock LifePath Index 2025 Fund 7 59% 41% BlackRock LifePath Index 2020 Fund 2 46% 54% BlackRock LifePath Index Retirement Fund 0 40% 60% The asset allocation targets are established by the portfolio managers.

The investment team, including the portfolio managers, meets regularly to assess market conditions, review the asset allocation targets of the Fund, and determine whether any changes are required to enable the Fund to achieve its investment objective. Although the asset allocation targets listed for the glide path are general, long-term targets, BFA may periodically adjust the proportion of equity index funds and fixed-income index funds in the Fund, based on an assessment of the current market conditions, the potential contribution of each asset class to the expected risk and return characteristics of the Fund, reallocations of Fund composition to reflect intra-year movement along the glide path and other factors. In general, such adjustments will be limited; however, BFA may determine that a greater degree of variation is warranted to protect the Fund or achieve its investment objective.

BFAs second step in the structuring of the Fund is the selection of the Underlying Funds. Factors such as fund classifications, historical risk and performance, and the relationship to other Underlying Funds in the Fund are considered when selecting Underlying Funds. The specific Underlying Funds selected for the Fund are determined at BFAs discretion and may change as deemed appropriate to allow the Fund to meet its investment objective. See the Details About the Funds Information About the Underlying Funds section of the prospectus for a list of the Underlying Funds, their classification into equity, fixed income or money market funds and a brief description of their investment objectives and primary investment strategies. Within the prescribed percentage allocations to equity and fixed-income index funds, BFA seeks to diversify the Fund.

The allocation to Underlying Funds that track equity indexes may be further diversified by style (including both value and growth), market capitalization (including both large cap and small cap), region (including domestic and international (including emerging markets)) or other factors. The allocation to Underlying Funds that track fixed-income indexes may be further diversified by sector (including government, corporate, agency, and other sectors), duration (a calculation of the average life of a bond which measures its price risk), credit quality (including non-investment grade debt or junk bonds), geographic location (including U.S. and foreign-issued securities), or other factors. The percentage allocation to the various styles of equity and fixed-income Underlying Funds is determined at the discretion of the investment team and can be changed to reflect the current market environment.

C000101138 Costs and Fees

C000101138 costs about $15 per $10,000 invested per year in fund expenses.

• Net expense ratio: 0.15%
• Gross expense ratio: 0.20%
• Portfolio turnover: 20%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

C000101138 Cashflows

Over the 12 months to 2019-09, BlackRock LifePath Index 2020 Fund had net inflows of $114.97M, from monthly SEC N-PORT filings.

C000101138 Debt Constituents

No individual debt constituents are reported in BlackRock LifePath Index 2020 Fund's latest SEC N-PORT filing.

C000101138 Prospectus and SEC Filings

Official BlackRock LifePath Index 2020 Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2019-05-20
• Prospectus supplement (497) — filed 2018-08-03
• Prospectus supplement (497) — filed 2018-05-21
• Portfolio holdings (N-PORT) — filed 2019-11-27
• Annual census (N-CEN) — filed 2019-03-18

Related Funds

Other Target Date / Glide Path Allocation funds tracked on ABC INVEST:

• Vanguard Target Retirement 2035 Fund (VTTHX)
• Vanguard Target Retirement 2045 Fund (VTIVX)
• Vanguard Target Retirement 2040 Fund (VFORX)
• Vanguard Target Retirement 2030 Fund (VTHRX)
• Vanguard Target Retirement 2050 Fund (VFIFX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.