BLACKROCK EQUITY DIVIDEND FUND
(the “Fund”)
Supplement dated May 23, 2024 to the
Summary Prospectuses, the Prospectuses and the Statement of Additional Information (“SAI”) of the Fund,
each dated August 28, 2023, as supplemented to date
Effective June 1, 2024, BlackRock Advisors, LLC, the Fund’s investment adviser (“BlackRock”), has agreed to contractually cap net expenses of the Fund at certain levels for the Fund’s Investor A, Investor C, Institutional, Class R, Service and Class K Shares. To achieve these expense caps, BlackRock has agreed to waive and/or reimburse fees or expenses if the Fund’s total annual fund operating expenses, excluding certain expenses described in the Prospectuses, exceed a certain limit for the Fund’s Investor A, Investor C, Institutional, Class R, Service and Class K Shares.
Accordingly, effective June 1, 2024, the following changes are made to the Fund’s Summary Prospectuses, Prospectuses and SAI, as applicable:
The section of the Investor A, Investor C, Institutional and Class R Shares Summary Prospectus entitled “Key Facts About BlackRock Equity Dividend Fund — Fees and Expenses of the Fund” and the section of the Investor A, Investor C, Institutional and Class R Shares Prospectus entitled “Fund Overview — Key Facts About BlackRock Equity Dividend Fund — Fees and Expenses of the Fund” are deleted in their entirety and replaced with the following:
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are not reflected in the table and example below. You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $25,000 in the fund complex advised by BlackRock or its affiliates. More information about these and other discounts is available from your Financial Intermediary and in the “Details About the Share Classes” and the “Intermediary-Defined Sales Charge Waiver Policies” sections on pages 24 and A‑1, respectively, of the Fund’s prospectus and in the “Purchase of Shares” section on page II‑91 of Part II of the Fund’s Statement of Additional Information.
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Shareholder Fees
(fees paid directly from your investment) |
|
Investor A
Shares |
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Investor C
Shares |
|
Institutional
Shares |
|
Class R
Shares |
Maximum Sales Charge (Load) Imposed on Purchases
(as a percentage of offering price) |
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5.25 |
% |
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None |
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None |
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None |
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| Maximum Deferred Sales Charge (Load) (as a percentage of offering price or redemption proceeds, whichever is lower) |
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None |
1 |
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1.00 |
%2 |
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None |
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None |
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of
your investment)
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|
Investor A
Shares |
|
Investor C
Shares |
|
Institutional
Shares |
|
Class R
Shares |
| Management Fee3 |
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0.56 |
% |
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0.56 |
% |
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0.56 |
% |
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0.56 |
% |
| Distribution and/or Service (12b‑1) Fees |
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0.25 |
% |
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1.00 |
% |
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None |
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0.50 |
% |
| Other Expenses |
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|
0.12 |
% |
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0.13 |
% |
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0.13 |
% |
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0.22 |
% |
| Acquired Fund Fees and Expenses4 |
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0.01 |
% |
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0.01 |
% |
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0.01 |
% |
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|
0.01 |
% |
| Total Annual Fund Operating Expenses4 |
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0.94 |
% |
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1.70 |
% |
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|
0.70 |
% |
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1.29 |
% |
| Fee Waivers and/or Expense Reimbursements3,5 |
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(0.01 |
)% |
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(0.01 |
)% |
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(0.01 |
)% |
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(0.07 |
)% |
| Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements3,5 |
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0.93 |
% |
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1.69 |
% |
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0.69 |
% |
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1.22 |
% |
| 1 |
A contingent deferred sales charge (“CDSC”) of 1.00% is assessed on certain redemptions of Investor A Shares made within 18 months after purchase where no initial sales charge was paid at time of purchase as part of an investment of $1,000,000 or more. |
| 2 |
There is no CDSC on Investor C Shares after one year. |
| 3 |
As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 40, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
| 4 |
The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent annual report, which do not include Acquired Fund Fees and Expenses. |
| 5 |
As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 40, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) as a percentage of average daily net assets to 0.96% (for Investor A Shares), 1.71% (for Investor C Shares), 0.71% (for Institutional Shares) and 1.21% (for Class R Shares) through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
Example:
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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| |
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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| Investor A Shares |
|
$ |
615 |
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$ |
807 |
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$ |
1,016 |
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$ |
1,617 |
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| Investor C Shares |
|
$ |
272 |
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$ |
534 |
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$ |
921 |
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$ |
1,805 |
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| Institutional Shares |
|
$ |
70 |
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$ |
222 |
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$ |
388 |
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$ |
869 |
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| Class R Shares |
|
$ |
124 |
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$ |
395 |
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$ |
694 |
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$ |
1,544 |
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You would pay the following expenses if you did not redeem your shares:
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1 Year |
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3 Years |
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5 Years |
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10 Years |
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| Investor C Shares |
|
$ |
172 |
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$ |
534 |
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$ |
921 |
|
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$ |
1,805 |
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Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 58% of the average value of its portfolio.
The fifth paragraph in the section of the Investor A, Investor C, Institutional and Class R Shares Prospectus entitled “Management of the Fund — BlackRock” is deleted in its entirety and replaced with the following:
BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and ETFs managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.
2
BlackRock has contractually agreed to cap net expenses (excluding: (i) interest, taxes, dividends tied to short sales, brokerage commissions, and other expenditures which are capitalized in accordance with generally accepted accounting principles; (ii) expenses incurred directly or indirectly by the Fund as a result of investments in other investment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result of, the Fund’s investments; and (iv) extraordinary expenses (including litigation expenses) not incurred in the ordinary course of the Fund’s business, if any) of each share class of the Fund at the levels shown below and in the Fund’s fees and expenses table in the “Fund Overview” section of this prospectus. Items (i), (ii), (iii) and (iv) in the preceding sentence are referred to in this prospectus as “Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses.” To achieve these expense caps, BlackRock has agreed to waive and/or reimburse fees or expenses if the Fund’s operating expenses exceed a certain limit.
With respect to the Fund, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses to the amounts noted in the table below.
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Contractual Caps1 on
Total Annual Fund
Operating Expenses2
(excluding Dividend
Expense, Interest
Expense, Acquired Fund
Fees and Expenses and
certain other Fund
expenses) |
| Investor A Shares |
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|
0.96 |
% |
| Investor C Shares |
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|
1.71 |
% |
| Institutional Shares |
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|
0.71 |
% |
| Class R Shares |
|
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|
1.21 |
% |
| 1 |
The contractual caps are in effect through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
| 2 |
As a percentage of average daily net assets. |
The amount of the contractual waivers and/or reimbursements of fees and expenses made pursuant to the contractual caps on net expenses will be reduced by the amount of the affiliated money market fund waiver.
3
The section of the Service Shares Summary Prospectus entitled “Key Facts About BlackRock Equity Dividend Fund — Fees and Expenses of the Fund” and the section of the Service Shares Prospectus entitled “Fund Overview — Key Facts About BlackRock Equity Dividend Fund — Fees and Expenses of the Fund” are deleted in their entirety and replaced with the following:
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell Service Shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are not reflected in the table and example below.
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Service Shares |
| Management Fee1 |
|
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|
0.56 |
% |
| Distribution and/or Service (12b‑1) Fees |
|
|
|
0.25 |
% |
| Other Expenses |
|
|
|
0.19 |
% |
| Acquired Fund Fees and Expenses2 |
|
|
|
0.01 |
% |
| Total Annual Fund Operating Expenses2 |
|
|
|
1.01 |
% |
| Fee Waivers and/or Expense Reimbursements1,3 |
|
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|
(0.04 |
)% |
| Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements1,3 |
|
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|
0.97 |
% |
| 1 |
As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 26, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
| 2 |
The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent annual report, which do not include Acquired Fund Fees and Expenses. |
| 3 |
As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 26, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.96% of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
Example:
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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1 Year |
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3 Years |
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5 Years |
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|
10 Years |
|
| Service Shares |
|
$ |
99 |
|
|
$ |
313 |
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|
$ |
550 |
|
|
$ |
1,229 |
|
Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 58% of the average value of its portfolio.
4
The fifth paragraph in the section of the Service Shares Prospectus entitled “Management of the Fund — BlackRock” is deleted in its entirety and replaced with the following:
BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and ETFs managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.
BlackRock has contractually agreed to cap net expenses (excluding: (i) interest, taxes, dividends tied to short sales, brokerage commissions, and other expenditures which are capitalized in accordance with generally accepted accounting principles; (ii) expenses incurred directly or indirectly by the Fund as a result of investments in other investment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result of, the Fund’s investments; and (iv) extraordinary expenses (including litigation expenses) not incurred in the ordinary course of the Fund’s business, if any) of Service Shares of the Fund at the level shown below and in the Fund’s fees and expenses table in the “Fund Overview” section of this prospectus. Items (i), (ii), (iii) and (iv) in the preceding sentence are referred to in this prospectus as “Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses.” To achieve this expense cap, BlackRock has agreed to waive and/or reimburse fees or expenses if the Fund’s operating expenses exceed a certain limit.
With respect to the Fund, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses to the amount noted in the table below.
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| |
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Contractual Cap1 on
Total Annual Fund
Operating Expenses2
(excluding Dividend
Expense, Interest
Expense, Acquired Fund
Fees and Expenses and
certain other Fund
expenses) |
| Service Shares |
|
|
|
0.96 |
% |
| 1 |
The contractual cap is in effect through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
| 2 |
As a percentage of average daily net assets. |
The amount of the contractual waivers and/or reimbursements of fees and expenses made pursuant to the contractual cap on net expenses will be reduced by the amount of the affiliated money market fund waiver.
The section of the Class K Shares Summary Prospectus entitled “Key Facts About BlackRock Equity Dividend Fund — Fees and Expenses of the Fund” and the section of the Class K Shares Prospectus entitled “Fund Overview — Key Facts About BlackRock Equity Dividend Fund — Fees and Expenses of the Fund” are deleted in their entirety and replaced with the following:
Fees and Expenses of the Fund
This table describes the fees and expenses that you may pay if you buy, hold and sell Class K Shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to your financial professional or your selected securities dealer, broker, investment adviser, service provider or industry professional (including BlackRock Advisors, LLC (“BlackRock”) and its affiliates) (each, a “Financial Intermediary”), which are not reflected in the table and example below.
5
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Annual Fund Operating Expenses
(expenses that you pay each year as a percentage of the value of your investment) |
|
Class K Shares |
| Management Fee1 |
|
|
|
0.56 |
% |
| Distribution and/or Service (12b‑1) Fees |
|
|
|
None |
|
| Other Expenses |
|
|
|
0.02 |
% |
| Acquired Fund Fees and Expenses2 |
|
|
|
0.01 |
% |
| Total Annual Fund Operating Expenses2 |
|
|
|
0.59 |
% |
| Fee Waivers and/or Expense Reimbursements1,3 |
|
|
|
(0.01 |
)% |
| Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements1,3 |
|
|
|
0.58 |
% |
| 1 |
As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 26, BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and exchange-traded funds managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
| 2 |
The Total Annual Fund Operating Expenses do not correlate to the ratios of expenses to average net assets given in the Fund’s most recent annual report, which do not include Acquired Fund Fees and Expenses. |
| 3 |
As described in the “Management of the Fund” section of the Fund’s prospectus beginning on page 26, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses) to 0.66% of average daily net assets through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
Example:
This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund’s operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:
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| |
|
1 Year |
|
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3 Years |
|
|
5 Years |
|
|
10 Years |
|
| Class K Shares |
|
$ |
59 |
|
|
$ |
187 |
|
|
$ |
327 |
|
|
$ |
736 |
|
Portfolio Turnover:
The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the Example, affect the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio turnover rate was 58% of the average value of its portfolio.
The fifth paragraph in the section of the Class K Shares Prospectus entitled “Management of the Fund — BlackRock” is deleted in its entirety and replaced with the following:
BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and ETFs managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. In addition, BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.
6
BlackRock has contractually agreed to cap net expenses (excluding: (i) interest, taxes, dividends tied to short sales, brokerage commissions, and other expenditures which are capitalized in accordance with generally accepted accounting principles; (ii) expenses incurred directly or indirectly by the Fund as a result of investments in other investment companies and pooled investment vehicles; (iii) other expenses attributable to, and incurred as a result of, the Fund’s investments; and (iv) extraordinary expenses (including litigation expenses) not incurred in the ordinary course of the Fund’s business, if any) of Class K Shares of the Fund at the level shown below and in the Fund’s fees and expenses table in the “Fund Overview” section of this prospectus. Items (i), (ii), (iii) and (iv) in the preceding sentence are referred to in this prospectus as “Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses.” To achieve this expense cap, BlackRock has agreed to waive and/or reimburse fees or expenses if the Fund’s operating expenses exceed a certain limit.
With respect to the Fund, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses to the amount noted in the table below.
|
|
|
|
|
|
| |
|
Contractual Cap1 on
Total Annual Fund
Operating Expenses2
(excluding Dividend
Expense, Interest
Expense, Acquired Fund
Fees and Expenses and
certain other Fund
expenses) |
| Class K Shares |
|
|
|
0.66 |
% |
| 1 |
The contractual cap is in effect through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the non‑interested trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund. |
| 2 |
As a percentage of average daily net assets. |
The amount of the contractual waivers and/or reimbursements of fees and expenses made pursuant to the contractual cap on net expenses will be reduced by the amount of the affiliated money market fund waiver.
The second paragraph in the section of the SAI entitled “Management, Advisory and Other Service Arrangements” is deleted in its entirety and replaced with the following:
BlackRock has contractually agreed to waive the management fee with respect to any portion of the Fund’s assets estimated to be attributable to investments in other equity and fixed-income mutual funds and ETFs managed by BlackRock or its affiliates that have a contractual management fee, through June 30, 2026. BlackRock has contractually agreed to waive its management fees by the amount of investment advisory fees the Fund pays to BlackRock indirectly through its investment in money market funds managed by BlackRock or its affiliates, through June 30, 2026. The contractual agreements may be terminated upon 90 days’ notice by a majority of the Independent Trustees of the Fund or by a vote of a majority of the outstanding voting securities of the Fund.
Effective June 1, 2024, BlackRock has contractually agreed to waive and/or reimburse fees or expenses in order to limit Total Annual Fund Operating Expenses After Fee Waivers and/or Expense Reimbursements (excluding Dividend Expense, Interest Expense, Acquired Fund Fees and Expenses and certain other Fund expenses (as defined in the Fund’s Prospectuses)) as a percentage of average daily net assets to 0.96% for Investor A Shares, 1.71% for Investor C Shares, 0.71% for Institutional Shares, 1.21% for Class R Shares, 0.96% for Service Shares and 0.66% for Class K Shares through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of the Fund.
Shareholders should retain this Supplement for future reference.
PR2SAI-EQD-0524SUP
7