BlackRock Variable Series Funds II, Inc. (Form: N-CSR, Received: 02/28/2020 10:19:24)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-23346

Name of Fund: BlackRock Variable Series Funds II, Inc.

BlackRock High Yield V.I. Fund

BlackRock Total Return V.I. Fund

BlackRock U.S. Government Bond V.I. Fund

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Variable

Series Funds II, Inc., 55 East 52^nd Street, New York, NY 10055

Registrant’s telephone number, including area code: (800) 441-7762

Date of fiscal year end: 12/31/2019

Date of reporting period: 12/31/2019

Item 1 – Report to Stockholders


		DECEMBER 31, 2019



		2019 Annual Report

BlackRock Variable Series Funds II, Inc.

Not FDIC Insured - May Lose Value - No Bank Guarantee

The Markets in Review

Dear Shareholder,

U.S. equities and bonds finished the last year of the decade with impressive returns, putting an exclamation point on a decade of strong performance despite the fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. In many ways, it was fitting that the themes of 2019 — geopolitical uncertainty, fears of recession, and decisive monetary stimulus — put the capstone on a decade that was defined by grappling with these competing forces.

Equity and bond markets posted solid returns, particularly in the second half of the year, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that has characterized this economic cycle. U.S. large cap equities advanced the most, while equities at the high end of the risk spectrum — emerging markets and U.S. small cap — lagged while still posting solid returns.

Fixed-income securities played an important role in diversified portfolios by delivering strong returns amid economic uncertainty, as interest rates declined (and bond prices rose). Long-term bonds, particularly long-term Treasuries, generally posted the strongest returns, as inflation remained low. Investment-grade and high-yield corporate bonds also posted solid returns, as the credit fundamentals in corporate markets remained relatively solid.

As equity performance faltered in late 2018 and global economic growth slowed, the U.S. Federal Reserve (the “Fed”) shifted away from policies designed to decrease inflation in favor of renewed efforts to stimulate economic activity. The Fed left interest rates unchanged in January 2019, then reduced interest rates three times thereafter, starting in July 2019. Similarly, the Fed took measures to support liquidity in short-term lending markets. Following in the Fed’s footsteps, the European Central Bank announced aggressive economic stimulus measures, including lower interest rates and the return of its bond purchasing program. The Bank of Japan signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world despite the headwind of rising geopolitical and trade tensions. Hopes continued to remain high as the current economic expansion became the longest in U.S. history.

Looking ahead, we believe U.S. economic growth will stabilize and gradually improve in 2020. The primary drivers of recent market performance — trade and monetary policies — could take a back seat to a nascent expansion in manufacturing and a recent uptick in global growth. The headwinds of policy uncertainty in 2019 could become tailwinds in 2020 due to pro-cyclical policy shifts.

Overall, we favor increasing investment risk to benefit from the brighter outlook. In addition to having a positive view for equities overall, we favor emerging market equities over developed market equities. Increasing cyclical exposure through value-style investing and maintaining a meaningful emphasis on high-quality companies through quality factors also makes sense for diversified investors. In fixed income, government bonds continue to be important portfolio stabilizers, while emerging market bonds, particularly local currency bonds, offer relatively attractive income opportunities.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC


Total Returns as of December 31, 2019
	6-Month	12-Month
U.S. large cap equities (S&P 500^®Index)	10.92%	31.49%
U.S. small cap equities (Russell 2000^®Index)	7.30	25.52
International equities (MSCI Europe, Australasia, Far East Index)	7.01	22.01
Emerging market equities (MSCI Emerging Markets Index)	7.09	18.42
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	1.03	2.28
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	1.36	8.91
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	2.45	8.72
Tax-exempt municipal bonds (S&P Municipal Bond Index)	2.21	7.26
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	3.98	14.32

Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.


2		THIS PAGE IS NOT PART OF YOUR FUND REPORT


		DECEMBER 31, 2019



		2019 Annual Report

BlackRock Variable Series Funds II, Inc.

BlackRock High Yield V.I. Fund

Not FDIC Insured - May Lose Value - No Bank Guarantee


Fund Summary as of December 31, 2019		BlackRock High Yield V.I. Fund

Investment Objective

BlackRock High Yield V.I. Fund’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended December 31, 2019, the Fund outperformed the benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index.

What factors influenced performance?

High yield bonds performed very well in 2019, as steady economic growth and supportive Fed policy boosted investors’ willingness to search for income in the higher-risk segments of the bond market.

Security selection, particularly in the technology, independent energy, and pharmaceutical industries, was a key contributor to the Fund’s relative performance. Credits rated B were the largest contributors by rating, followed by strong security selection within the CCC rated segment.

The Fund’s underweights in the retail, finance, and home construction industries were the largest detractors at the sector level. An underweight in BB rated securities also detracted, as this high-quality market segment outperformed in 2019. From an asset allocation perspective, an out-of-benchmark position in floating rate loan interests (“bank loans”) — which underperformed high yield bonds — detracted from relative performance.

The Fund may invest in credit default swaps (“CDS”), index credit default swaps (“CDX”) and currency forward contracts. It intermittently employs currency forwards to manage the currency risk of non-dollar denominated bonds, and it uses CDS and CDX to manage risk, express credit views and put capital to work in moving markets. On occasion, the Fund may use equity index futures to manage the risk of financial-market volatility. In combination, these positions had a positive impact on performance for the Fund’s annual period.

Describe recent portfolio activity.

While the Fund’s key investment themes remained broadly consistent, the investment adviser sought to adjust sector- and issuer-level positioning to take advantage of market opportunities. Overall, the Fund continued to favor a measured approach to risk taking.

The Fund maintained an allocation to bank loans, although the investment adviser reduced this position to capitalize on more compelling relative value opportunities in high yield. At the sector level, the Fund decreased its allocation to energy issues during the year.

Describe portfolio positioning at period end.

The Fund was overweight in B rated issues, while underweight in BBs and overweight in select CCCs. The investment adviser’s criteria for owning CCC bonds include the potential for near-term rating upgrade and a specific catalyst for price appreciation.

In addition to holding a core position in high yield bonds and a tactical allocation to loans, the Fund maintained a smaller weighting in common stocks. The Fund’s leading sector overweights were in technology, aerospace & defense, and health care, while midstream energy and consumer cyclicals (primarily retail and home construction) were the largest underweights.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.


2		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of December 31, 2019 (continued)		BlackRock High Yield V.I. Fund

TOTAL RETURN BASED ON A $10,000 INVESTMENT

LOGO

^(a)

Assuming transaction costs, if any, and other operating expenses, including investment advisory fees. Does not include insurance-related fees and expenses. The returns for Class III Shares, prior to February 15, 2012, the recommencement of operations of Class III Shares, are based upon performance of Class I Shares of the Predecessor Fund (as defined below), as adjusted to reflect the distribution and/or service (12b-1) fees applicable to Class III Shares.

^(b)

The Fund invests primarily in non-investment grade bonds with maturities of ten years or less. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock High Yield V.I. Fund (the “Predecessor Fund”), a series of BlackRock Variable Series Funds, Inc., through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Fund’s total returns prior to October 1, 2011 are the returns of the Predecessor Fund when it followed different investment objectives and investment strategies under the name “BlackRock High Income V.I. Fund”.

^(c)	An unmanaged index comprised of issues that meet the following criteria: at least $150 million par value outstanding; maximum credit rating of Ba1; at least one year to maturity; and no issuer represents more than 2% of the index.

Performance Summary for the Period Ended December 31, 2019


										Average Annual Total Returns ^(a)
	Standardized 30-Day Yields^(b)			Unsubsidized 30-Day Yields^(b)			6-Month Total Returns ^(a)			1 Year			5 Years			10 Years
Class I ^(c)		4.66	%		4.57	%		4.87	%		15.29	%		5.57	%		7.35	%
Class III ^(c)		4.42			4.32			4.60			14.86			5.32			7.08^(d	⁾
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index		—			—			3.98			14.32			6.14			7.55

^(a)

For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

^(c)

Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on the ex-dividend/ payable date. Insurance-related fees and expenses are not reflected in these returns. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund, a series of BlackRock Variable Series Funds, Inc., through the Reorganization. The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Fund’s total returns prior to October 1, 2011 are the returns of the Predecessor Fund when it followed different investment objectives and investment strategies under the name “BlackRock High Income V.I. Fund”.

^(d)

The returns for Class III Shares prior to February 15, 2012, the recommencement of operations of Class III Shares, are based upon the performance of the Predecessor Fund’s Class I Shares, as adjusted to reflect the distribution (12b-1) fees applicable to Class III Shares.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


FUND SUMMARY			3


Fund Summary as of December 31, 2019 (continued)		BlackRock High Yield V.I. Fund

Expense Example


	Actual						Hypothetical ^(a)
	Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period ^(b)		Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period ^(b)		Annualized Expense Ratio
Class I	$	1,000.00	$	1,048.70	$	3.05	$	1,000.00	$	1,022.23	$	3.01		0.59	%
Class III		1,000.00		1,046.00		4.28		1,000.00		1,021.02		4.23		0.83

^(a)

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)

For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 5 for further information on how expenses were calculated.

Portfolio Information


CREDIT QUALITY ALLOCATION
Credit Rating ^(a)	Percent of Total Investments ^(b)
BBB/Baa		6	%
BB/Ba		40
B		42
CCC/Caa		11
NR		1

^(a)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/ Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)

Total Investments exclude short-term securities.


4		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Disclosure of Expenses

Shareholders of the Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense example shown on the previous page (which is based on a hypothetical investment of $1,000 invested on July 1, 2019 and held through December 31, 2019) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense example provides information about actual account values and actual expenses. In order to estimate the expenses a shareholder paid during the period covered by this report, shareholders can divide their account value by $1,000 and then multiply the result by the number corresponding to their share class under the heading entitled “Expenses Paid During the Period.”

The expense example also provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. In order to assist shareholders in comparing the ongoing expenses of investing in the Fund and other funds, compare the 5% hypothetical example with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense example are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical example is useful in comparing ongoing expenses only, and will not help shareholders determine the relative total expenses of owning different funds. If these transactional expenses were included, shareholder expenses would have been higher.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.


DISCLOSURE OF EXPENSES / DERIVATIVE FINANCIAL INSTRUMENTS			5

Schedule of Investments

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security		Shares		Value

Common Stocks — 0.9%

Aerospace & Defense — 0.0%
Bombardier, Inc., Class B^(a)			216,793	$	322,214


Chemicals — 0.3%
Element Solutions, Inc.^(a)			153,824		1,796,664


Equity Real Estate Investment Trusts (REITs) — 0.1%
Gaming and Leisure Properties, Inc.			12,660		545,013


Media — 0.1%
Clear Channel Outdoor Holdings, Inc.^(a)			146,145		417,975


Metals & Mining — 0.2%
Constellium SE, Class A^(a)			80,736		1,081,862


Pharmaceuticals — 0.2%
Bausch Health Cos., Inc.^(a)			31,341		937,723


Total Common Stocks — 0.9% (Cost: $4,773,283)					5,101,451

		Par (000)

Corporate Bonds — 85.1%

Aerospace & Defense — 4.2%
Arconic, Inc.:
5.40%, 04/15/21	USD		16		16,495
5.87%, 02/23/22			335		357,721
5.13%, 10/01/24			1,307		1,424,630
Bombardier, Inc.^(b):
8.75%, 12/01/21			1,205		1,320,228
5.75%, 03/15/22			236		243,744
6.13%, 01/15/23			668		685,034
7.50%, 12/01/24			94		98,759
7.50%, 03/15/25			459		473,339
7.88%, 04/15/27			2,284		2,349,665
BWX Technologies, Inc., 5.38%, 07/15/26^(b)			368		390,080
F-Brasile SpA, Series XR, 7.38%, 08/15/26^(b)			741		781,755
Kratos Defense & Security Solutions, Inc.,
6.50%, 11/30/25^(b)			711		760,770
Moog, Inc., 4.25%, 12/15/27^(b)			246		250,330
Signature Aviation US Holdings, Inc.^(b):
5.38%, 05/01/26			537		565,252
4.00%, 03/01/28			661		651,944
SSL Robotics LLC, 9.75%, 12/31/23^(b)			258		280,575
TransDigm UK Holdings plc, 6.88%, 05/15/26			765		814,725
TransDigm, Inc.^(b):
6.25%, 03/15/26			10,065		10,896,471
5.50%, 11/15/27			881		890,893
Triumph Group, Inc., 6.25%, 09/15/24^(b)			1,053		1,106,966

					24,359,376

Air Freight & Logistics — 0.1%
XPO Logistics, Inc., 6.75%, 08/15/24^(b)			378		410,640


Auto Components — 1.7%
Allison Transmission, Inc.^(b):
5.00%, 10/01/24			16		16,380
5.88%, 06/01/29			1,160		1,270,200
Icahn Enterprises LP:
6.75%, 02/01/24			49		50,837
4.75%, 09/15/24^(b)			122		125,355
6.38%, 12/15/25			306		320,918
6.25%, 05/15/26			1,277		1,360,005
5.25%, 05/15/27^(b)			606		619,714


Security		Par (000)		Value

Auto Components (continued)
Panther BF Aggregator 2 LP^(b):
6.25%, 05/15/26	USD		2,310	$	2,489,025
8.50%, 05/15/27			3,219		3,420,187

					9,672,621

Automobiles — 0.1%
Tesla, Inc., 5.30%, 08/15/25^(b)			448		434,560


Banks — 0.4%
Banco Espirito Santo SA^(a)(c):
2.63%, 05/08/17	EUR		100		19,069
4.75%, 01/15/18			100		19,069
4.00%, 01/21/19			100		19,069
Barclays plc:
4.38%, 09/11/24	USD		850		893,049
5.20%, 05/12/26			200		218,748
CIT Group, Inc.:
5.00%, 08/15/22			30		31,800
5.00%, 08/01/23			446		480,565
HSBC Holdings plc, (USD Swap Rate 5 Year + 3.75%), 6.00%^(d)(e)			465		495,225

					2,176,594

Building Products — 0.5%^(b)
Advanced Drainage Systems, Inc., 5.00%, 09/30/27			541		557,906
CPG Merger Sub LLC, 8.00%, 10/01/21			604		605,510
JELD-WEN, Inc.:
4.63%, 12/15/25			200		205,900
4.88%, 12/15/27			4		4,090
Masonite International Corp.:
5.75%, 09/15/26			45		47,813
5.38%, 02/01/28			273		288,356
Standard Industries, Inc.:
5.38%, 11/15/24			474		487,035
6.00%, 10/15/25			746		784,232

					2,980,842

Capital Markets — 0.3%
Credit Suisse Group AG^(b)(d)(e):
(USD Swap Semi 5 Year + 4.60%), 7.50%			200		218,870
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.82%), 6.37%			700		754,600
Goldman Sachs Group, Inc. (The), Series R, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.22%), 4.95%^(d)(e)			280		290,080
MSCI, Inc.^(b):
4.75%, 08/01/26			62		64,945
4.00%, 11/15/29			133		134,829
Owl Rock Capital Corp.:
5.25%, 04/15/24			146		154,930
4.00%, 03/30/25			195		195,774

					1,814,028

Chemicals — 2.0%
Atotech Alpha 2 BV, 8.75%, (8.75% Cash or 9.50% PIK), 06/01/23^(b)(f)			610		622,200
Atotech Alpha 3 BV, 6.25%, 02/01/25^(b)			2,554		2,617,850
Axalta Coating Systems LLC, 4.88%, 08/15/24^(b)			748		774,180
Blue Cube Spinco LLC:
9.75%, 10/15/23			937		1,007,575
10.00%, 10/15/25			408		451,154
Chemours Co. (The):
6.63%, 05/15/23			621		623,378
5.38%, 05/15/27			117		103,545
Element Solutions, Inc., 5.88%, 12/01/25^(b)			2,303		2,409,514


6		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Chemicals (continued)
Gates Global LLC, 6.25%, 01/15/26^(b)		USD 554	$	563,534
GCP Applied Technologies, Inc., 5.50%, 04/15/26^(b)		306		321,300
NOVA Chemicals Corp., 4.88%, 06/01/24^(b)		81		83,633
OCI NV, 5.25%, 11/01/24^(b)		277		287,388
PQ Corp.^(b):
6.75%, 11/15/22		7		7,236
5.75%, 12/15/25		912		953,040
TPC Group, Inc., 10.50%, 08/01/24^(b)		416		419,120
W.R. Grace & Co., 5.63%, 10/01/24^(b)		154		170,170

				11,414,817

Commercial Services & Supplies — 2.3%
ACCO Brands Corp., 5.25%, 12/15/24^(b)		104		108,290
ADT Security Corp. (The):
3.50%, 07/15/22		11		11,199
4.13%, 06/15/23		184		189,750
4.88%, 07/15/32^(b)		1,222		1,121,185
Advanced Disposal Services, Inc., 5.63%, 11/15/24^(b)		146		151,840
Aramark Services, Inc.:
5.00%, 04/01/25^(b)		53		55,252
4.75%, 06/01/26		507		527,280
5.00%, 02/01/28^(b)		832		876,720
Clean Harbors, Inc.^(b):
4.88%, 07/15/27		522		549,405
5.13%, 07/15/29		591		633,907
GFL Environmental, Inc.^(b):
5.38%, 03/01/23		49		50,470
7.00%, 06/01/26		1,359		1,435,648
5.13%, 12/15/26		795		835,847
8.50%, 05/01/27		1,386		1,524,600
GW B-CR Security Corp., 9.50%, 11/01/27^(b)		112		119,560
Harland Clarke Holdings Corp., 8.38%, 08/15/22^(b)		175		142,625
IAA, Inc., 5.50%, 06/15/27^(b)		689		732,063
KAR Auction Services, Inc., 5.13%, 06/01/25^(b)		347		360,880
Mobile Mini, Inc., 5.88%, 07/01/24		1,268		1,318,720
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25^(b)		168		173,040
Prime Security Services Borrower LLC^(b):
5.25%, 04/15/24		528		558,624
5.75%, 04/15/26		539		585,828
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25^(b)		381		397,193
Waste Pro USA, Inc., 5.50%, 02/15/26^(b)		806		840,255

				13,300,181

Communications Equipment — 0.7%
CommScope, Inc.^(b):
5.50%, 03/01/24		950		990,375
6.00%, 03/01/26		437		464,859
Nokia OYJ:
4.38%, 06/12/27		187		194,948
6.63%, 05/15/39		583		675,130
ViaSat, Inc., 5.63%, 04/15/27^(b)		1,391		1,488,370

				3,813,682

Construction & Engineering — 0.2%^(b)
Brand Industrial Services, Inc., 8.50%, 07/15/25		892		914,300
New Enterprise Stone & Lime Co., Inc.:
10.13%, 04/01/22		158		167,282
6.25%, 03/15/26		99		103,703

				1,185,285


Security	Par (000)		Value

Consumer Finance — 1.5%
Ally Financial, Inc.:
4.13%, 03/30/20		USD 100	$	100,375
8.00%, 11/01/31		2,206		3,062,149
Global Aircraft Leasing Co. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 09/15/24^(b)(f)		1,682		1,761,104
Navient Corp.:
5.00%, 10/26/20		47		47,691
6.63%, 07/26/21		373		394,447
7.25%, 09/25/23		157		177,415
6.13%, 03/25/24		295		320,075
5.88%, 10/25/24		116		124,120
6.75%, 06/25/25		120		132,480
6.75%, 06/15/26		205		225,316
Springleaf Finance Corp.:
6.13%, 05/15/22		45		48,319
6.88%, 03/15/25		288		327,600
7.13%, 03/15/26		867		1,002,425
6.63%, 01/15/28		348		392,823
5.38%, 11/15/29		263		274,519

				8,390,858

Containers & Packaging — 2.4%
ARD Finance SA, 6.50%, (6.50% Cash or 0.00% PIK), 06/30/27^(b)(f)		989		1,022,577
Ardagh Packaging Finance plc^(b):
4.13%, 08/15/26		739		757,475
4.75%, 07/15/27		GBP 100		138,951
5.25%, 08/15/27		USD 318		334,701
Berry Global, Inc., 4.88%, 07/15/26^(b)		729		768,876
Crown Americas LLC:
4.75%, 02/01/26		430		454,187
4.25%, 09/30/26		374		392,233
Graphic Packaging International LLC, 4.75%, 07/15/27^(b)		128		136,960
Greif, Inc., 6.50%, 03/01/27^(b)		112		120,960
Intertape Polymer Group, Inc., 7.00%, 10/15/26^(b)		181		191,407
LABL Escrow Issuer LLC, 6.75%, 07/15/26^(b)		1,101		1,169,813
Mauser Packaging Solutions Holding Co., 5.50%, 04/15/24^(b)		2,574		2,651,477
Reynolds Group Issuer, Inc.^(b):
5.13%, 07/15/23		726		743,243
7.00%, 07/15/24		460		475,525
Sealed Air Corp.^(b):
5.13%, 12/01/24		20		21,550
6.88%, 07/15/33		31		36,580
Silgan Holdings, Inc., 4.13%, 02/01/28^(b)		374		374,112
Trivium Packaging Finance BV^(b)(g):
5.50%, 08/15/26		1,544		1,626,990
8.50%, 08/15/27		2,182		2,427,475

				13,845,092

Distributors — 1.0%^(b)
American Builders & Contractors Supply Co., Inc.:
5.88%, 05/15/26		478		507,875
4.00%, 01/15/28		601		610,015
Core & Main Holdings LP, 8.63%, (8.63% Cash or 9.38% PIK), 09/15/24^(f)		748		777,920
Core & Main LP, 6.13%, 08/15/25		1,889		1,969,282
Performance Food Group, Inc., 5.50%, 10/15/27		438		468,113
Wolverine Escrow LLC:
8.50%, 11/15/24		382		395,370


SCHEDULE OF INVESTMENTS			7

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value
Distributors (continued)
9.00%, 11/15/26		USD 690	$	722,775

				5,451,350

Diversified Consumer Services — 0.6%
frontdoor, Inc., 6.75%, 08/15/26^(b)		798		869,820
Graham Holdings Co., 5.75%, 06/01/26^(b)		172		183,610
Laureate Education, Inc., 8.25%, 05/01/25^(b)		171		184,039
Service Corp. International, 5.13%, 06/01/29		519		551,437
ServiceMaster Co. LLC (The), 5.13%, 11/15/24^(b)		851		882,913
Sotheby’s, 7.38%, 10/15/27^(b)		600		607,500

				3,279,319

Diversified Financial Services — 1.8%^(b)
Allied Universal Holdco LLC:
6.63%, 07/15/26		2,620		2,815,714
9.75%, 07/15/27		520		555,500
Fairstone Financial, Inc., 7.88%, 07/15/24		289		310,675
MPH Acquisition Holdings LLC, 7.13%, 06/01/24		1,506		1,457,055
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26		EUR 650		793,448
6.25%, 05/15/26		USD 115		125,494
8.25%, 11/15/26		1,443		1,625,179
Verscend Escrow Corp., 9.75%, 08/15/26		2,406		2,631,563

				10,314,628

Diversified Telecommunication Services — 5.8%
Altice France SA^(b):
7.38%, 05/01/26		2,780		2,984,719
8.13%, 02/01/27		1,881		2,118,477
5.50%, 01/15/28		1,562		1,605,033
CCO Holdings LLC^(b):
4.00%, 03/01/23		169		171,324
5.75%, 02/15/26		52		54,861
5.13%, 05/01/27		972		1,025,460
5.88%, 05/01/27		22		23,265
5.00%, 02/01/28		922		967,473
5.38%, 06/01/29		2,523		2,699,610
4.75%, 03/01/30		1,051		1,069,949
CenturyLink, Inc.:
Series W, 6.75%, 12/01/23		400		446,500
Series Y, 7.50%, 04/01/24		752		847,880
5.63%, 04/01/25		685		727,847
5.13%, 12/15/26^(b)		1,295		1,317,831
Series P, 7.60%, 09/15/39		281		293,645
Series U, 7.65%, 03/15/42		616		645,260
Cincinnati Bell, Inc.^(b):
7.00%, 07/15/24		906		950,167
8.00%, 10/15/25		296		313,760
Frontier Communications Corp., 8.00%, 04/01/27^(b)		3,385		3,537,325
Intelsat Jackson Holdings SA:
5.50%, 08/01/23		820		704,413
9.75%, 07/15/25^(b)		1,413		1,307,025
Level 3 Financing, Inc.:
5.38%, 08/15/22		135		135,499
5.13%, 05/01/23		226		227,413
5.38%, 05/01/25		110		113,850
5.25%, 03/15/26		121		125,840
4.63%, 09/15/27^(b)		430		440,234
Qualitytech LP, 4.75%, 11/15/25^(b)		529		548,176
Qwest Corp., 6.75%, 12/01/21		197		212,112
Sable International Finance Ltd., 5.75%, 09/07/27^(b)		200		212,000


Security	Par (000)		Value
Diversified Telecommunication Services (continued)
Sprint Capital Corp.:
6.88%, 11/15/28		USD 1,035	$	1,115,212
8.75%, 03/15/32		1,030		1,250,163
Telecom Italia Capital SA:
6.38%, 11/15/33		241		267,510
6.00%, 09/30/34		606		649,935
7.20%, 07/18/36		29		34,359
7.72%, 06/04/38		95		116,850
Telecom Italia SpA, 5.30%, 05/30/24^(b)		947		1,018,025
Telesat Canada^(b):
4.88%, 06/01/27		658		669,515
6.50%, 10/15/27		52		54,210
Virgin Media Finance plc, 5.75%, 01/15/25^(b)		1,347		1,385,726
Virgin Media Secured Finance plc, 5.50%, 05/15/29^(b)		800		847,000

				33,235,453

Electric Utilities — 0.5%^(b)
NextEra Energy Operating Partners LP:
4.25%, 07/15/24		816		849,660
4.25%, 09/15/24		193		200,720
4.50%, 09/15/27		334		348,195
Vistra Operations Co. LLC:
3.55%, 07/15/24		383		387,986
4.30%, 07/15/29		816		832,473

				2,619,034

Electrical Equipment — 0.3%^(b)
Sensata Technologies BV:
5.63%, 11/01/24		450		500,625
5.00%, 10/01/25		207		224,854
Vertiv Group Corp., 9.25%, 10/15/24		782		840,650

				1,566,129

Electronic Equipment, Instruments & Components — 0.3%
APX Group, Inc.:
8.75%, 12/01/20		361		361,000
7.88%, 12/01/22		153		154,339
8.50%, 11/01/24^(b)		202		208,060
CDW LLC:
5.50%, 12/01/24		24		26,640
5.00%, 09/01/25		222		231,990
4.25%, 04/01/28		177		185,629
Itron, Inc., 5.00%, 01/15/26^(b)		34		35,232
Sensata Technologies, Inc., 4.38%, 02/15/30^(b)		397		404,710

				1,607,600

Energy Equipment & Services — 1.2%
Apergy Corp., 6.38%, 05/01/26		370		390,350
Archrock Partners LP, 6.88%, 04/01/27^(b)		263		278,122
Nabors Industries, Inc., 4.63%, 09/15/21		338		335,887
Noble Holding International Ltd.:
7.75%, 01/15/24		34		17,663
7.88%, 02/01/26^(b)		233		168,925
Pacific Drilling SA, 8.38%, 10/01/23^(b)		994		907,025
Rowan Cos., Inc., 4.88%, 06/01/22		891		650,430
Tervita Corp., 7.63%, 12/01/21^(b)		994		1,000,213
Transocean, Inc.:
6.50%, 11/15/20		9		9,180
8.37%, 12/15/21^(g)		31		31,775
9.00%, 07/15/23^(b)		1,464		1,546,350
USA Compression Partners LP:
6.88%, 04/01/26		863		906,150
6.88%, 09/01/27		696		724,954
Valaris plc, 4.70%, 03/15/21		52		43,745

				7,010,769


8		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Entertainment — 0.8%
Lions Gate Capital Holdings LLC^(b):
6.38%, 02/01/24		USD 339	$	354,262
5.88%, 11/01/24		150		150,750
Live Nation Entertainment, Inc., 4.75%, 10/15/27^(b)		315		326,025
Netflix, Inc.:
5.38%, 02/01/21		60		61,875
4.88%, 04/15/28		109		113,218
5.88%, 11/15/28		1,534		1,700,531
5.38%, 11/15/29^(b)		822		875,413
4.88%, 06/15/30^(b)		828		840,938

				4,423,012

Equity Real Estate Investment Trusts (REITs) — 2.7%
Brookfield Property REIT, Inc., 5.75%, 05/15/26^(b)		864		911,520
GLP Capital LP:
3.35%, 09/01/24		150		153,106
5.25%, 06/01/25		320		351,232
5.38%, 04/15/26		172		190,129
4.00%, 01/15/30		695		709,387
Iron Mountain, Inc.^(b):
4.88%, 09/15/27		400		413,000
4.88%, 09/15/29		510		518,058
iStar, Inc., 5.25%, 09/15/22		75		76,969
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24		690		754,681
4.50%, 09/01/26		607		638,867
5.75%, 02/01/27^(b)		202		225,230
4.50%, 01/15/28		1,220		1,271,850
MPT Operating Partnership LP:
5.00%, 10/15/27		1,505		1,595,300
4.63%, 08/01/29		894		920,820
Ryman Hospitality Properties, Inc., 4.75%, 10/15/27^(b)		1,013		1,045,922
SBA Communications Corp.:
4.00%, 10/01/22		858		874,088
4.88%, 09/01/24		1,085		1,125,687
VICI Properties 1 LLC, 8.00%, 10/15/23		200		216,538
VICI Properties LP^(b):
4.25%, 12/01/26		1,962		2,020,860
4.63%, 12/01/29		1,454		1,515,795

				15,529,039

Food & Staples Retailing — 0.4%
Albertsons Cos., Inc.:
6.63%, 06/15/24		163		170,606
5.75%, 03/15/25		547		566,145
4.63%, 01/15/27^(b)		655		654,214
5.88%, 02/15/28^(b)		1,002		1,064,625

				2,455,590

Food Products — 1.5%^(b)
Chobani LLC, 7.50%, 04/15/25		1,029		1,034,145
Darling Ingredients, Inc., 5.25%, 04/15/27		192		204,240
JBS Investments II GmbH, 7.00%, 01/15/26		200		217,566
JBS USA LUX SA:
5.88%, 07/15/24		715		735,334
5.75%, 06/15/25		1,268		1,313,965
6.75%, 02/15/28		350		387,078
6.50%, 04/15/29		1,349		1,499,117
5.50%, 01/15/30		960		1,031,136
Post Holdings, Inc.:
5.50%, 03/01/25		349		365,578
5.00%, 08/15/26		46		48,587


Security	Par (000)		Value

Food Products (continued)
5.75%, 03/01/27		USD 337	$	361,432
5.63%, 01/15/28		165		177,788
5.50%, 12/15/29		887		945,808
Simmons Foods, Inc., 7.75%, 01/15/24		415		447,163

				8,768,937

Gas Utilities — 0.1%
Superior Plus LP, 7.00%, 07/15/26^(b)		647		694,716


Health Care Equipment & Supplies — 0.9%
Hill-Rom Holdings, Inc., 4.38%, 09/15/27^(b)		136		139,910
Hologic, Inc.^(b):
4.38%, 10/15/25		286		295,295
4.63%, 02/01/28		185		196,100
Immucor, Inc., 11.13%, 02/15/22^(b)		284		283,290
Ortho-Clinical Diagnostics, Inc., 6.63%, 05/15/22^(b)		3,601		3,578,494
Teleflex, Inc.:
4.88%, 06/01/26		314		328,130
4.63%, 11/15/27		51		54,050

				4,875,269

Health Care Providers & Services — 5.3%
Acadia Healthcare Co., Inc., 5.13%, 07/01/22		231		232,732
AHP Health Partners, Inc., 9.75%, 07/15/26^(b)		645		708,694
Centene Corp.^(b):
5.38%, 06/01/26		508		539,115
4.25%, 12/15/27		1,196		1,230,385
4.63%, 12/15/29		2,760		2,901,726
Community Health Systems, Inc.^(b):
8.63%, 01/15/24		1,267		1,343,020
8.00%, 03/15/26		1,566		1,612,980
Eagle Holding Co. II LLC^(b)(f):
7.63%, (7.63% Cash or 8.38% PIK), 05/15/22		108		109,700
7.75%, (7.75% Cash or 8.50% PIK), 05/15/22		541		549,320
Encompass Health Corp., 5.75%, 11/01/24		109		110,226
Envision Healthcare Corp., 8.75%, 10/15/26^(b)		330		204,600
HCA, Inc.:
5.38%, 02/01/25		598		661,286
5.88%, 02/15/26		37		42,074
5.38%, 09/01/26		268		298,485
5.63%, 09/01/28		1,648		1,878,061
5.88%, 02/01/29		1,507		1,742,469
MEDNAX, Inc.^(b):
5.25%, 12/01/23		343		350,717
6.25%, 01/15/27		1,355		1,388,875
Molina Healthcare, Inc.:
5.38%, 11/15/22^(g)		63		66,968
4.88%, 06/15/25^(b)		809		831,247
NVA Holdings, Inc., 6.88%, 04/01/26^(b)		314		339,513
Polaris Intermediate Corp., 8.50%, (8.50% Cash or 9.25% PIK), 12/01/22^(b)(f)		738		687,207
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 05/01/23^(b)		901		952,808
Surgery Center Holdings, Inc.^(b):
6.75%, 07/01/25		790		790,000
10.00%, 04/15/27		738		809,955
Team Health Holdings, Inc., 6.38%, 02/01/25^(b)		120		80,100
Tenet Healthcare Corp.:
8.13%, 04/01/22		1,865		2,063,156
4.63%, 09/01/24^(b)		536		558,834
4.88%, 01/01/26^(b)		2,348		2,459,295
6.25%, 02/01/27^(b)		1,580		1,700,475
5.13%, 11/01/27^(b)		1,619		1,710,069


SCHEDULE OF INVESTMENTS			9

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Health Care Providers & Services (continued)
Vizient, Inc., 6.25%, 05/15/27^(b)	USD	669	$	715,830
WellCare Health Plans, Inc.:
5.25%, 04/01/25		242		251,680
5.38%, 08/15/26^(b)		722		768,930

				30,690,532

Health Care Technology — 0.3%
IQVIA, Inc.:
3.25%, 03/15/25	EUR	224		256,258
5.00%, 10/15/26^(b)	USD	472		497,960
5.00%, 05/15/27^(b)		681		720,399

				1,474,617

Hotels, Restaurants & Leisure — 5.2%
1011778 BC ULC^(b):
4.25%, 05/15/24		22		22,550
5.00%, 10/15/25		2,380		2,457,350
3.88%, 01/15/28		821		823,053
4.38%, 01/15/28		616		617,540
Aramark International Finance SARL, 3.13%, 04/01/25	EUR	506		584,324
Boyne USA, Inc., 7.25%, 05/01/25^(b)	USD	276		300,150
Cedar Fair LP, 5.25%, 07/15/29^(b)		836		900,790
Churchill Downs, Inc.^(b):
5.50%, 04/01/27		1,081		1,145,860
4.75%, 01/15/28		1,007		1,039,727
Eldorado Resorts, Inc.:
6.00%, 04/01/25		131		137,550
6.00%, 09/15/26		167		183,909
Golden Nugget, Inc., 6.75%, 10/15/24^(b)		2,712		2,806,920
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24		7		7,131
5.13%, 05/01/26		680		715,700
4.88%, 01/15/30		1,755		1,859,256
Hilton Worldwide Finance LLC, 4.88%, 04/01/27		190		201,875
IRB Holding Corp., 6.75%, 02/15/26^(b)		257		269,207
KFC Holding Co.^(b):
5.25%, 06/01/26		395		416,725
4.75%, 06/01/27		96		101,040
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26		66		71,858
MGM Resorts International:
7.75%, 03/15/22		884		988,975
6.00%, 03/15/23		631		692,522
5.75%, 06/15/25		69		77,280
Motion Bondco DAC, 6.63%, 11/15/27^(b)		200		211,500
Sabre GLBL, Inc.^(b):
5.38%, 04/15/23		229		234,611
5.25%, 11/15/23		333		341,741
Scientific Games International, Inc.:
5.00%, 10/15/25^(b)		1,173		1,227,251
3.38%, 02/15/26	EUR	500		580,368
8.25%, 03/15/26^(b)	USD	1,987		2,190,667
7.00%, 05/15/28^(b)		452		484,770
7.25%, 11/15/29^(b)		445		482,825
Six Flags Entertainment Corp.^(b):
4.88%, 07/31/24		1,595		1,652,819
5.50%, 04/15/27		762		812,482
Station Casinos LLC, 5.00%, 10/01/25^(b)		460		468,050
Viking Cruises Ltd.^(b):
6.25%, 05/15/25		101		105,166
5.88%, 09/15/27		1,526		1,630,913
Wyndham Destinations, Inc.^(g):
5.40%, 04/01/24		12		12,705
5.75%, 04/01/27		230		249,550


Security	Par (000)		Value

Hotels, Restaurants & Leisure (continued)
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26^(b)	USD	203	$	214,165
Wynn Las Vegas LLC, 5.25%, 05/15/27^(b)		446		473,875
Wynn Resorts Finance LLC, 5.13%, 10/01/29^(b)		982		1,053,195
Yum! Brands, Inc.:
4.75%, 01/15/30^(b)		1,073		1,123,968
5.35%, 11/01/43		10		9,900

				29,981,813

Household Durables — 1.0%
Brookfield Residential Properties, Inc., 6.25%, 09/15/27^(b)		426		449,430
Installed Building Products, Inc., 5.75%, 02/01/28^(b)		205		219,094
Lennar Corp.:
6.63%, 05/01/20		255		258,506
4.88%, 12/15/23		50		53,500
5.25%, 06/01/26		355		388,725
4.75%, 11/29/27		396		426,690
Mattamy Group Corp., 5.25%, 12/15/27^(b)		246		255,840
MDC Holdings, Inc., 6.00%, 01/15/43		187		194,480
Meritage Homes Corp., 5.13%, 06/06/27		240		256,200
PulteGroup, Inc.:
6.38%, 05/15/33		512		597,760
6.00%, 02/15/35		244		272,060
Taylor Morrison Communities, Inc., 5.88%, 06/15/27^(b)		651		716,100
Tempur Sealy International, Inc., 5.50%, 06/15/26		14		14,752
TRI Pointe Group, Inc.:
5.88%, 06/15/24		123		133,762
5.25%, 06/01/27		385		402,325
Williams Scotsman International, Inc.^(b):
7.88%, 12/15/22		208		216,840
6.88%, 08/15/23		889		935,673

				5,791,737

Household Products — 0.2%
Energizer Holdings, Inc.^(b):
6.38%, 07/15/26		140		149,100
7.75%, 01/15/27		344		384,437
Spectrum Brands, Inc.:
5.75%, 07/15/25		391		408,114
5.00%, 10/01/29^(b)		294		303,555

				1,245,206

Independent Power and Renewable Electricity Producers — 2.0%
Calpine Corp.:
5.50%, 02/01/24		147		149,205
5.75%, 01/15/25		1,576		1,617,370
5.25%, 06/01/26^(b)		1,339		1,394,234
4.50%, 02/15/28^(b)		936		944,302
5.13%, 03/15/28^(b)		2,256		2,302,699
Clearway Energy Operating LLC:
5.75%, 10/15/25		406		427,315
4.75%, 03/15/28^(b)		505		511,944
NRG Energy, Inc.:
3.75%, 06/15/24^(b)		224		231,628
6.63%, 01/15/27		1,143		1,240,155
5.75%, 01/15/28		54		58,590
4.45%, 06/15/29^(b)		726		760,556
5.25%, 06/15/29^(b)		1,217		1,315,881
Pattern Energy Group, Inc., 5.88%, 02/01/24^(b)		649		667,659
Talen Energy Supply LLC: 6.50%, 06/01/25		78		66,567


10		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Independent Power and Renewable Electricity Producers (continued)
10.50%, 01/15/26^(b)	USD	72	$	68,490

				11,756,595

Insurance — 1.3%^(b)
Acrisure LLC, 8.13%, 02/15/24		752		817,800
Alliant Holdings Intermediate LLC, 6.75%, 10/15/27		1,718		1,839,892
AmWINS Group, Inc., 7.75%, 07/01/26		559		617,768
Ardonagh Midco 3 plc, 8.63%, 07/15/23		652		647,110
GTCR AP Finance, Inc., 8.00%, 05/15/27		938		975,520
HUB International Ltd., 7.00%, 05/01/26		2,484		2,626,830
NFP Corp., 8.00%, 07/15/25		176		179,520

				7,704,440

Interactive Media & Services — 0.1%^(b)
Match Group, Inc., 5.63%, 02/15/29		164		174,660
Rackspace Hosting, Inc., 8.63%, 11/15/24		273		266,858
Twitter, Inc., 3.88%, 12/15/27		209		208,891

				650,409

Internet & Direct Marketing Retail — 0.1%
Go Daddy Operating Co. LLC, 5.25%, 12/01/27^(b)		357		375,742


IT Services — 1.8%
Banff Merger Sub, Inc., 9.75%, 09/01/26^(b)		3,295		3,336,187
Booz Allen Hamilton, Inc., 5.13%, 05/01/25^(b)		505		518,887
Gartner, Inc., 5.13%, 04/01/25^(b)		594		618,503
Tempo Acquisition LLC, 6.75%, 06/01/25^(b)		1,626		1,678,845
WEX, Inc., 4.75%, 02/01/23^(b)		301		303,258
Zayo Group LLC:
6.00%, 04/01/23		440		449,900
6.38%, 05/15/25		620		639,115
5.75%, 01/15/27^(b)		2,904		2,951,190

				10,495,885

Leisure Products — 0.4%
Mattel, Inc.^(b):
6.75%, 12/31/25		1,776		1,908,845
5.88%, 12/15/27		554		583,777

				2,492,622

Life Sciences Tools & Services — 1.0%^(b)
Avantor, Inc.:
6.00%, 10/01/24		2,771		2,954,523
9.00%, 10/01/25		1,767		1,974,676
Charles River Laboratories International, Inc.:
5.50%, 04/01/26		466		500,950
4.25%, 05/01/28		521		530,769

				5,960,918

Machinery — 1.6%
Amsted Industries, Inc., 5.63%, 07/01/27^(b)		230		243,800
Colfax Corp.^(b):
6.00%, 02/15/24		669		710,812
6.38%, 02/15/26		659		718,310
EnPro Industries, Inc., 5.75%, 10/15/26		543		578,295
Grinding Media, Inc., 7.38%, 12/15/23^(b)		1,063		1,082,931
Manitowoc Co., Inc. (The), 9.00%, 04/01/26^(b)		344		360,340
Mueller Water Products, Inc., 5.50%, 06/15/26^(b)		476		501,585
Navistar International Corp., 6.63%, 11/01/25^(b)		952		969,850
RBS Global, Inc., 4.88%, 12/15/25^(b)		815		841,488
SPX FLOW, Inc., 5.63%, 08/15/24^(b)		374		389,427
Stevens Holding Co., Inc., 6.13%, 10/01/26^(b)		457		499,273
Terex Corp., 5.63%, 02/01/25^(b)		304		313,880
Titan Acquisition Ltd., 7.75%, 04/15/26^(b)		1,485		1,470,150


Security	Par (000)		Value

Machinery (continued)
Wabash National Corp., 5.50%, 10/01/25^(b)	USD	654	$	654,000

				9,334,141

Media — 6.9%
Altice Financing SA^(b):
6.63%, 02/15/23		1,073		1,091,777
7.50%, 05/15/26		1,502		1,614,650
Altice Luxembourg SA^(b):
7.63%, 02/15/25		1,111		1,154,051
10.50%, 05/15/27		2,342		2,669,997
AMC Networks, Inc.:
4.75%, 12/15/22		222		223,942
5.00%, 04/01/24		69		70,380
4.75%, 08/01/25		512		513,920
Clear Channel Worldwide Holdings, Inc.^(b):
9.25%, 02/15/24		2,230		2,469,725
5.13%, 08/15/27		3,242		3,375,895
CSC Holdings LLC:
5.38%, 07/15/23^(b)		1,248		1,279,200
5.25%, 06/01/24		357		384,667
7.75%, 07/15/25^(b)		636		678,110
10.88%, 10/15/25^(b)		1,771		1,979,093
5.50%, 05/15/26^(b)		598		633,127
5.38%, 02/01/28^(b)		200		213,250
6.50%, 02/01/29^(b)		1,136		1,266,640
5.75%, 01/15/30^(b)		1,271		1,356,792
Diamond Sports Group LLC, 5.38%, 08/15/26^(b)		1,066		1,078,314
DISH DBS Corp.:
6.75%, 06/01/21		614		646,204
5.88%, 07/15/22		1,761		1,866,660
5.00%, 03/15/23		625		641,156
5.88%, 11/15/24		915		935,016
Entercom Media Corp., 6.50%, 05/01/27^(b)		469		501,830
GCI LLC, 6.63%, 06/15/24^(b)		735		795,637
Gray Television, Inc., 5.13%, 10/15/24^(b)		37		38,388
iHeartCommunications, Inc.:
6.38%, 05/01/26		624		677,215
5.25%, 08/15/27^(b)		185		193,565
4.75%, 01/15/28^(b)		130		133,250
LCPR Senior Secured Financing DAC, 6.75%, 10/15/27^(b)		600		636,000
Meredith Corp., 6.88%, 02/01/26		144		149,717
Midcontinent Communications, 5.38%, 08/15/27^(b)		307		324,653
Outfront Media Capital LLC^(b):
5.00%, 08/15/27		671		702,872
4.63%, 03/15/30		443		450,753
Radiate Holdco LLC^(b):
6.88%, 02/15/23		90		91,575
6.63%, 02/15/25		589		594,890
Sirius XM Radio, Inc.^(b):
4.63%, 07/15/24		224		235,200
5.38%, 07/15/26		19		20,181
5.00%, 08/01/27		1,338		1,411,590
5.50%, 07/01/29		1,132		1,223,964
TEGNA, Inc., 5.50%, 09/15/24^(b)		79		81,765
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28^(b)		800		854,000
Terrier Media Buyer, Inc., 8.88%, 12/15/27^(b)		807		853,403
Univision Communications, Inc.^(b):
5.13%, 05/15/23		456		454,860
5.13%, 02/15/25		52		51,415
Videotron Ltd., 5.13%, 04/15/27^(b)		429		459,030
WMG Acquisition Corp., 5.50%, 04/15/26^(b)		182		191,555


SCHEDULE OF INVESTMENTS			11

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Media (continued)
Ziggo Bond Co. BV^(b):
5.88%, 01/15/25	USD	750	$	772,973
6.00%, 01/15/27		565		596,075
Ziggo BV^(b):
5.50%, 01/15/27		825		876,562
4.88%, 01/15/30		292		301,435

				39,816,919

Metals & Mining — 2.6%
Allegheny Technologies, Inc., 5.88%, 12/01/27		621		652,050
Big River Steel LLC, 7.25%, 09/01/25^(b)		516		544,380
Constellium SE^(b):
5.75%, 05/15/24		352		361,680
6.63%, 03/01/25		1,343		1,393,497
5.88%, 02/15/26		1,478		1,562,985
Freeport-McMoRan, Inc.:
3.55%, 03/01/22		733		742,162
3.88%, 03/15/23		1,660		1,690,262
5.00%, 09/01/27		178		186,900
5.25%, 09/01/29		375		401,738
5.45%, 03/15/43		3,101		3,209,535
Kaiser Aluminum Corp., 4.63%, 03/01/28^(b)		289		296,514
New Gold, Inc., 6.25%, 11/15/22^(b)		942		937,585
Novelis Corp.^(b):
6.25%, 08/15/24		1,334		1,399,032
5.88%, 09/30/26		1,316		1,400,362

				14,778,682

Mortgage Real Estate Investment Trusts (REITs) — 0.0%
Starwood Property Trust, Inc., 5.00%, 12/15/21		255		264,563


Oil, Gas & Consumable Fuels — 6.9%
Antero Midstream Partners LP, 5.38%, 09/15/24		200		185,500
Antero Resources Corp., 5.38%, 11/01/21		268		255,186
Ascent Resources Utica Holdings LLC, 10.00%, 04/01/22^(b)		476		473,444
Berry Petroleum Co. LLC, 7.00%, 02/15/26^(b)		214		198,217
Callon Petroleum Co.:
6.13%, 10/01/24		360		366,818
6.38%, 07/01/26		694		704,136
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23		495		502,351
8.25%, 07/15/25		396		404,910
Centennial Resource Production LLC, 6.88%, 04/01/27^(b)		368		382,720
Cheniere Energy Partners LP:
5.63%, 10/01/26		816		862,920
4.50%, 10/01/29^(b)		1,090		1,120,084
Chesapeake Energy Corp.:
6.63%, 08/15/20		389		385,110
4.88%, 04/15/22		1,080		853,200
5.75%, 03/15/23		451		305,273
11.50%, 01/01/25^(b)		903		853,335
CNX Resources Corp., 5.88%, 04/15/22		1,459		1,460,021
Comstock Resources, Inc., 9.75%, 08/15/26		333		302,197
CONSOL Energy, Inc., 11.00%, 11/15/25^(b)		1,273		1,084,443
Covey Park Energy LLC, 7.50%, 05/15/25^(b)		438		376,680
Crestwood Midstream Partners LP:
6.25%, 04/01/23^(g)		238		242,760
5.63%, 05/01/27^(b)		567		574,796
CrownRock LP, 5.63%, 10/15/25^(b)		1,830		1,866,600
DCP Midstream Operating LP:
5.38%, 07/15/25		246		267,525
5.13%, 05/15/29		135		140,063
6.45%, 11/03/36^(b)		269		282,450
6.75%, 09/15/37^(b)		706		741,300


Security	Par (000)		Value

Oil, Gas & Consumable Fuels (continued)
Denbury Resources, Inc.^(b):
9.00%, 05/15/21	USD	717	$	693,698
9.25%, 03/31/22		68		64,090
Endeavor Energy Resources LP^(b):
5.50%, 01/30/26		859		886,918
5.75%, 01/30/28		712		748,490
EnLink Midstream LLC, 5.38%, 06/01/29		121		113,740
EnLink Midstream Partners LP:
4.40%, 04/01/24		498		483,110
4.15%, 06/01/25		27		25,380
4.85%, 07/15/26		79		74,062
5.60%, 04/01/44		255		206,550
5.05%, 04/01/45		41		32,390
Extraction Oil & Gas, Inc.^(b):
7.38%, 05/15/24		1,004		627,500
5.63%, 02/01/26		481		288,600
Genesis Energy LP:
6.00%, 05/15/23		130		128,700
5.63%, 06/15/24		68		65,620
6.50%, 10/01/25		127		122,873
6.25%, 05/15/26		148		141,340
Great Western Petroleum LLC, 9.00%, 09/30/21^(b)		708		632,775
Hess Midstream Operations LP^(b):
5.63%, 02/15/26		316		328,920
5.13%, 06/15/28		257		260,212
Indigo Natural Resources LLC, 6.88%, 02/15/26^(b)		514		483,160
Matador Resources Co., 5.88%, 09/15/26		530		531,325
MEG Energy Corp.^(b):
6.38%, 01/30/23		428		429,070
7.00%, 03/31/24		106		106,662
6.50%, 01/15/25		1,207		1,255,401
Murphy Oil Corp.:
5.75%, 08/15/25		135		141,203
5.88%, 12/01/27		282		296,100
5.87%, 12/01/42^(g)		165		151,800
NGPL PipeCo LLC, 7.77%, 12/15/37^(b)		362		467,408
NuStar Logistics LP, 6.00%, 06/01/26		418		442,035
Parkland Fuel Corp., 5.88%, 07/15/27^(b)		390		419,390
Parsley Energy LLC^(b):
6.25%, 06/01/24		120		124,800
5.38%, 01/15/25		1,109		1,142,270
5.25%, 08/15/25		395		405,863
PBF Holding Co. LLC, 7.25%, 06/15/25		194		207,095
PDC Energy, Inc.:
1.13%, 09/15/21^(h)		32		30,046
6.13%, 09/15/24		31		31,387
5.75%, 05/15/26		293		292,268
QEP Resources, Inc.:
5.38%, 10/01/22		870		874,350
5.25%, 05/01/23		130		128,700
5.63%, 03/01/26		319		311,105
Range Resources Corp.:
5.75%, 06/01/21		360		359,100
5.88%, 07/01/22		136		134,980
5.00%, 08/15/22		267		261,660
SM Energy Co.:
1.50%, 07/01/21^(h)		437		413,703
6.13%, 11/15/22		509		514,090
5.00%, 01/15/24		180		171,450
5.63%, 06/01/25		19		18,034
6.75%, 09/15/26		180		176,400
6.63%, 01/15/27		47		46,194


12		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Oil, Gas & Consumable Fuels (continued)
Southwestern Energy Co.:
6.20%, 01/23/25^(g)	USD	50	$	45,860
7.75%, 10/01/27		28		25,934
SRC Energy, Inc., 6.25%, 12/01/25 Sunoco LP:		10		10,075
4.88%, 01/15/23		279		285,283
5.50%, 02/15/26		47		48,762
6.00%, 04/15/27		195		208,163
5.88%, 03/15/28		185		196,434
Tallgrass Energy Partners LP^(b):
4.75%, 10/01/23		42		41,895
5.50%, 09/15/24		612		615,060
5.50%, 01/15/28		334		327,320
Targa Resources Partners LP:
5.13%, 02/01/25		213		220,987
5.88%, 04/15/26		513		545,063
5.38%, 02/01/27		32		33,200
6.50%, 07/15/27^(b)		811		888,045
5.00%, 01/15/28		597		608,940
6.88%, 01/15/29^(b)		947		1,051,170
5.50%, 03/01/30^(b)		584		600,060
TerraForm Power Operating LLC^(b):
4.25%, 01/31/23		22		22,649
5.00%, 01/31/28		659		696,767
4.75%, 01/15/30		548		557,590
Viper Energy Partners LP, 5.38%, 11/01/27^(b)		193		200,720
WPX Energy, Inc.:
8.25%, 08/01/23		217		249,550
5.25%, 09/15/24		220		233,750
5.75%, 06/01/26		291		310,643
5.25%, 10/15/27		72		75,960

				39,583,936

Paper & Forest Products — 0.0%
Norbord, Inc., 6.25%, 04/15/23^(b)		226		241,820


Pharmaceuticals — 2.5%
Bausch Health Americas, Inc., 8.50%, 01/31/27^(b)		1,329		1,513,465
Bausch Health Cos., Inc.:
5.50%, 03/01/23^(b)		216		217,080
4.50%, 05/15/23	EUR	643		730,269
5.88%, 05/15/23^(b)	USD	148		149,295
7.00%, 03/15/24^(b)		311		323,440
6.13%, 04/15/25^(b)		192		198,380
5.50%, 11/01/25^(b)		1,876		1,960,420
9.00%, 12/15/25^(b)		849		965,483
5.75%, 08/15/27^(b)		555		602,175
7.00%, 01/15/28^(b)		927		1,023,222
5.00%, 01/30/28^(b)		1,017		1,043,839
7.25%, 05/30/29^(b)		975		1,113,937
5.25%, 01/30/30^(b)		1,003		1,040,111
Catalent Pharma Solutions, Inc.^(b):
4.88%, 01/15/26		662		685,170
5.00%, 07/15/27		628		657,830
Elanco Animal Health, Inc., 4.90%, 08/28/28		413		449,436
Par Pharmaceutical, Inc., 7.50%, 04/01/27^(b)		1,762		1,753,190

				14,426,742

Professional Services — 1.1%^(b)
ASGN, Inc., 4.63%, 05/15/28		472		485,159
Dun & Bradstreet Corp. (The):
6.88%, 08/15/26		1,822		2,011,033
10.25%, 02/15/27		1,610		1,851,500
Jaguar Holding Co. II, 6.38%, 08/01/23		2,001		2,065,407

				6,413,099


Security	Par (000)		Value

Real Estate Management & Development — 0.4%
Five Point Operating Co. LP, 7.88%, 11/15/25^(b)USD		834	$	840,097
Greystar Real Estate Partners LLC, 5.75%, 12/01/25^(b)		532		551,950
Howard Hughes Corp. (The), 5.38%, 03/15/25^(b)		619		645,307
Newmark Group, Inc., 6.13%, 11/15/23		152		167,627

				2,204,981

Road & Rail — 0.6%^(b)
Ashtead Capital, Inc.:
4.00%, 05/01/28		310		313,100
4.25%, 11/01/29		355		362,544
Capitol Investment Merger Sub 2 LLC, 10.00%, 08/01/24		395		409,812
Hertz Corp. (The):
7.63%, 06/01/22		210		218,400
6.00%, 01/15/28		539		539,000
Uber Technologies, Inc.:
7.50%, 11/01/23		714		746,130
8.00%, 11/01/26		291		303,367
7.50%, 09/15/27		258		264,693

				3,157,046

Semiconductors & Semiconductor Equipment — 0.2%
Advanced Micro Devices, Inc., 7.50%, 08/15/22		79		88,974
Entegris, Inc., 4.63%, 02/10/26^(b)		251		259,785
Qorvo, Inc.:
5.50%, 07/15/26		276		293,940
4.38%, 10/15/29^(b)		136		142,460
Sensata Technologies UK Financing Co. plc, 6.25%, 02/15/26^(b)		400		431,000

				1,216,159

Software — 4.2%
ACI Worldwide, Inc., 5.75%, 08/15/26^(b)		1,087		1,171,242
Ascend Learning LLC:
6.88%, 08/01/25^(b)		1,721		1,807,050
Camelot Finance SA, 4.50%, 11/01/26^(b)		1,159		1,190,872
CDK Global, Inc.:
4.88%, 06/01/27		1,084		1,144,975
5.25%, 05/15/29^(b)		658		705,705
Change Healthcare Holdings LLC, 5.75%, 03/01/25^(b)		1,777		1,825,867
Fair Isaac Corp., 4.00%, 06/15/28^(b)		276		278,070
Genesys Telecommunications Laboratories,
Inc., 10.00%, 11/30/24^(b)		1,617		1,748,381
Infor US, Inc., 6.50%, 05/15/22		3,691		3,746,365
Informatica LLC, 7.13%, 07/15/23^(b)		1,249		1,267,735
Nuance Communications, Inc., 5.63%, 12/15/26		559		595,746
PTC, Inc., 6.00%, 05/15/24		209		218,144
RP Crown Parent LLC, 7.38%, 10/15/24^(b)		1,049		1,089,649
Solera LLC, 10.50%, 03/01/24^(b)		3,512		3,726,443
Sophia LP, 9.00%, 09/30/23^(b)		215		220,913
SS&C Technologies, Inc., 5.50%, 09/30/27^(b)		1,925		2,054,938
TIBCO Software, Inc., 11.38%, 12/01/21^(b)		1,200		1,243,560
Veritas US, Inc., 7.50%, 02/01/23^(b)		326		325,185

				24,360,840

Specialty Retail — 1.2%
Asbury Automotive Group, Inc., 6.00%, 12/15/24		863		891,047
eG Global Finance plc^(b):
6.75%, 02/07/25		620		629,300
8.50%, 10/30/25		399		423,439
Group 1 Automotive, Inc., 5.25%, 12/15/23^(b)		45		46,237
L Brands, Inc.:
6.88%, 11/01/35		654		585,330
6.75%, 07/01/36		119		104,423


SCHEDULE OF INVESTMENTS			13

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Specialty Retail (continued)
Murphy Oil USA, Inc., 4.75%, 09/15/29	USD	501	$	529,091
Penske Automotive Group, Inc., 5.50%, 05/15/26		170		178,075
PetSmart, Inc.^(b):
7.13%, 03/15/23		81		79,380
5.88%, 06/01/25		790		804,812
SRS Distribution, Inc., 8.25%, 07/01/26^(b)		575		593,688
Staples, Inc., 7.50%, 04/15/26^(b)		1,738		1,803,175

				6,667,997

Technology Hardware, Storage & Peripherals — 0.6%
Dell International LLC, 7.13%, 06/15/24^(b)		1,129		1,191,095
NCR Corp.^(b):
5.75%, 09/01/27		305		324,825
6.13%, 09/01/29		718		779,116
Western Digital Corp., 4.75%, 02/15/26		1,055		1,099,837
Xerox Corp., 4.80%, 03/01/35		331		305,391

				3,700,264

Textiles, Apparel & Luxury Goods — 0.1%
William Carter Co. (The), 5.63%, 03/15/27^(b)		610		655,750


Thrifts & Mortgage Finance — 0.4%^(b)
Ladder Capital Finance Holdings LLLP, 5.25%, 10/01/25		897		930,637
Nationstar Mortgage Holdings, Inc.:
8.13%, 07/15/23		849		898,683
9.13%, 07/15/26		653		723,198

				2,552,518

Trading Companies & Distributors — 1.2%
Beacon Roofing Supply, Inc.^(b):
4.88%, 11/01/25		334		335,670
4.50%, 11/15/26		143		147,290
Flexi-Van Leasing, Inc., 10.00%, 02/15/23^(b)		247		234,032
Fortress Transportation & Infrastructure Investors LLC^(b):
6.75%, 03/15/22		113		117,802
6.50%, 10/01/25		225		237,488
HD Supply, Inc., 5.38%, 10/15/26^(b)		2,643		2,801,580
Herc Holdings, Inc., 5.50%, 07/15/27^(b)		897		944,093
United Rentals North America, Inc.:
5.50%, 07/15/25		603		626,554
4.63%, 10/15/25		425		436,943
5.88%, 09/15/26		166		178,076
6.50%, 12/15/26		187		205,525
5.50%, 05/15/27		399		427,437
3.88%, 11/15/27		397		405,317
5.25%, 01/15/30		30		32,289

				7,130,096

Wireless Telecommunication Services — 1.6%
Connect Finco SARL, 6.75%, 10/01/26^(b)		2,400		2,556,000
Gogo Intermediate Holdings LLC, 9.88%, 05/01/24^(b)		1,311		1,384,744
Hughes Satellite Systems Corp., 5.25%, 08/01/26		250		274,375
Sprint Corp.:
7.88%, 09/15/23		642		708,338
7.13%, 06/15/24		765		825,244
7.63%, 02/15/25		836		917,384
7.63%, 03/01/26		457		503,980
T-Mobile USA, Inc.:
6.50%, 01/15/26		441		472,844
4.50%, 02/01/26		495		507,375
4.75%, 02/01/28		753		789,001


Security	Par (000)		Value

Wireless Telecommunication Services (continued)
Xplornet Communications, Inc., 9.63%, (9.63% Cash or 10.63% PIK), 06/01/22^(b)(f)	USD	205	$	204,332

				9,143,617


Total Corporate Bonds — 85.1% (Cost: $473,424,693)				489,899,107


Floating Rate Loan Interests — 8.5%⁽ⁱ⁾

Aerospace & Defense — 0.1%
Atlantic Aviation FBO, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%) , 5.55%, 12/06/25		79		80,042
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 6.90%, 11/28/21		208		207,611

				287,653

Auto Components — 0.1%
Panther BF Aggregator 2 LP, Term Loan B, (LIBOR USD 1 Month + 3.50%), 5.30%, 04/30/26		513		513,826


Building Products — 0.0%
CPG International, Inc., Term Loan, (LIBOR USD 3 Month + 3.75%), 5.93%, 05/05/24		195		194,598


Capital Markets — 0.1%
Jefferies Finance LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.50%, 06/03/26		567		564,648


Chemicals — 0.4%
Alpha 3 BV, Term Loan, 01/31/24^(j)		1,238		1,239,816
Ascend Performance Materials LLC, Term Loan B, (LIBOR USD 1 Month + 5.25%), 7.19%, 08/14/26^(k)		607		612,033
Invictus Co., Term Loan B26, (LIBOR USD 3 Month + 6.75%), 8.68%, 03/30/26		74		68,171
Momentive Performance Materials, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.05%, 05/15/24		127		125,868

				2,045,888

Commercial Services & Supplies — 0.8%
Brand Energy & Infrastructure Services, Inc., Term Loan, 06/21/24^(j)		3,129		3,117,463
Diamond (BC) BV, Term Loan, (LIBOR USD 3 Month + 3.00%), 4.93%, 09/06/24		585		571,906
GFL Environmental, Inc., Term Loan B, 05/30/25^(j)		676		676,642

				4,366,011

Construction & Engineering — 0.1%
SRS Distribution, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.05%, 05/23/25		683		677,347


Containers & Packaging — 0.1%
BWAY Holding Co., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.23%, 04/03/24		513		511,137
Charter NEX US, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.50%), 5.30%, 05/16/24		129		129,997

				641,134

Diversified Consumer Services — 0.0%
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.55%, 05/06/24		195		189,078


14		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Diversified Financial Services — 0.2%
Sotheby’s, Inc., Term Loan B, (LIBOR USD 1 Month + 5.50%), 7.24%, 01/15/27	USD	460	$	455,144
Triton Bidco, Term Loan B, (LIBOR USD 6 Month + 4.50%), 0.00%, 09/23/26		411		412,659

				867,803

Diversified Telecommunication Services — 0.2%
Altice France SA, Term Loan, (LIBOR USD 1 Month + 4.00%), 5.74%, 08/14/26		290		290,505
CenturyLink, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 4.55%, 01/31/25		812		814,588
Iridium Satellite LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.55%, 11/04/26		200		202,376
Telesat Canada, Term Loan, (LIBOR USD 6 Month + 2.75%), 4.63%, 12/07/26		117		117,342

				1,424,811

Energy Equipment & Services — 0.2%
McDermott International, Inc., Term Loan, 10/21/21^(j)		443		451,542
Pioneer Energy Services Corp., Term Loan, (LIBOR USD 1 Month + 7.75%), 9.55%, 11/08/22^(k)		1,007		966,720

				1,418,262

Entertainment — 0.0%
Renaissance Learning, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.05%, 05/24/25		97		96,096


Food & Staples Retailing — 0.0%
US Foods, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 3.80%, 08/14/26		110		110,102


Food Products — 0.1%^(j)
Aramark Services, Inc., Term Loan, 01/27/27		77		77,361
Chobani LLC, Term Loan, 10/10/23		283		282,451

				359,812

Health Care Equipment & Supplies — 0.3%
Immucor, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 6.94%, 06/15/21		1,569		1,561,191


Health Care Providers & Services — 0.5%
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.30%, 06/30/25		230		232,002
Azalea TopCo, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 5.30%, 07/24/26		554		556,209
Envision Healthcare Corp., Term Loan, (LIBOR USD 1 Month + 3.75%), 5.55%, 10/10/25		1,536		1,306,647
Gentiva Health Services, Inc., Term Loan U, (LIBOR USD 1 Month + 3.75%), 5.56%, 07/02/25		408		409,511
Quorum Health Corp., 1st Lien Term Loan, (LIBOR USD 3 Month + 6.75%), 8.68%, 04/29/22		308		301,442
WIRB-Copernicus Group, Inc., Term Loan, 12/11/26^(j)		319		319,000

				3,124,811

Health Care Technology — 0.2%
Athenahealth, Inc., Term Loan B, (LIBOR USD 3 Month + 4.50%), 6.40%, 02/05/26		1,213		1,218,036


Hotels, Restaurants & Leisure — 0.1%
Stars Group Holdings BV, Term Loan, (LIBOR USD 3 Month + 3.50%), 5.44%, 07/10/25		732		738,016


Security	Par (000)		Value

Independent Power and Renewable Electricity Producers — 0.0%
Calpine Corp., Term Loan, (LIBOR USD 1 Month + 2.50%), 4.30%, 08/12/26	USD	126	$	126,301


Industrial Conglomerates — 0.3%
PSAV Holdings LLC, 2nd Lien Term Loan, 09/01/25^(j)(k)		247		232,090
Vertiv Co., Term Loan B, (LIBOR USD 3 Month + 4.00%), 5.93%, 11/30/23		1,313		1,308,560

				1,540,650

Insurance — 0.5%
Alliant Holdings Intermediate LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 4.80%, 05/09/25		81		80,725
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 8.30%, 08/04/25		681		688,832
Hub International, Inc., Term Loan B, (LIBOR USD 6 Month + 4.00%), 5.90%, 04/25/25		413		416,791
Sedgwick, 1st Lien Term Loan, 12/31/25^(j)		1,037		1,037,007
Sedgwick, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.00%), 5.80%, 09/03/26		370		373,149

				2,596,504

IT Services — 0.6%
Camelot US Acquisition 1 Co., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.05%, 10/30/26		284		285,562
CCC Information Services, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 8.55%, 04/28/25		40		40,060
CCC Information Services, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 4.55%, 04/29/24		129		129,303
Mitchell International, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.05%, 11/29/24		451		446,930
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.05%, 12/01/25^(k)		123		117,453
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.16%, 08/01/25		83		50,976
Peak 10 Holding Corp., Term Loan, (LIBOR USD 3 Month + 3.50%), 5.44%, 08/01/24		191		158,613
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.05%, 04/16/25		239		240,916
Verscend Holding Corp., Term Loan B, (LIBOR USD 1 Month + 4.50%), 6.30%, 08/27/25		2,077		2,088,965

				3,558,778

Life Sciences Tools & Services — 0.2%
Sotera Health Holdings LLC, Term Loan, (LIBOR USD 6 Month + 4.50%), 6.29%, 11/20/26		1,220		1,222,668


Machinery — 0.3%
MHI Holdings LLC, Term Loan B, (LIBOR USD 1 Month + 5.00%), 6.80%, 09/21/26		352		351,560
Titan Acquisition Ltd., Term Loan, (LIBOR USD 1 Month + 3.00%), 4.80%, 03/28/25		1,456		1,429,532

				1,781,092


SCHEDULE OF INVESTMENTS			15

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Media — 1.0%
Ascend Learning LLC, Term Loan B, (LIBOR USD 1 Month + 3.00%), 4.80%, 07/12/24	USD	75	$	75,691
Clear Channel Outdoor Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 5.30%, 08/21/26		1,264		1,269,697
Intelsat Jackson Holdings SA, Term Loan:
(LIBOR USD 3 Month + 3.75%), 5.68%, 11/27/23		117		117,004
(LIBOR USD 6 Month + 4.50%), 6.43%, 01/02/24		388		391,002
6.63%, 01/02/24^(l)		2,255		2,278,566
Terrier Media Buyer, Inc., Term Loan, (LIBOR USD 6 Month + 4.25%), 6.15%, 12/17/26		1,262		1,273,838
Xplornet Communications, Inc., Term Loan, (LIBOR USD 3 Month + 4.00%), 5.94%, 09/09/21^(k)		250		250,552

				5,656,350

Oil, Gas & Consumable Fuels — 0.5%
California Resources Corp., Term Loan, (LIBOR USD 1 Month + 10.38%), 12.18%, 12/31/21		752		557,910
Chesapeake Energy Corp., Term Loan, 06/24/24^(j)		2,254		2,317,856
CNX Resources Corp., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.30%, 11/28/22		321		282,910

				3,158,676

Pharmaceuticals — 0.2%
Bausch Health Cos., Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 4.74%, 06/02/25		423		424,617
Endo Pharmaceuticals, Inc., Term Loan B, (LIBOR USD 1 Month + 4.25%), 6.06%, 04/29/24		604		576,468
Jaguar Holding Co. I, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.30%, 08/18/22		115		115,934

				1,117,019

Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, (LIBOR USD 1 Month + 5.00%), 6.79%, 02/06/26		438		441,469


Road & Rail — 0.2%^(j)
Genesee & Wyoming, Inc., Term Loan, 11/06/26		258		260,211
Uber Technologies, Inc., Term Loan, 03/14/25		852		849,812

				1,110,023

Semiconductors & Semiconductor Equipment — 0.0%
ON Semiconductor Corp., Term Loan B, (LIBOR USD 1 Month + 2.00%), 3.80%, 09/19/26		179		180,587


Software — 0.6%
Infor US, Inc., Term Loan, (LIBOR USD 3 Month + 2.75%), 4.69%, 02/01/22		206		207,074
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.16%, 11/01/24		569		579,430
Refinitiv US Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.05%, 10/01/25		2,186		2,204,446
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.05%, 04/16/25		154		155,435
TIBCO Software, Inc., Term Loan, (LIBOR USD 1 Month + 4.00%), 5.71%, 06/30/26		300		301,280
Ultimate Software Group, Inc. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 3.75%), 5.55%, 05/04/26		136		136,795

				3,584,460


Security			Par (000)		Value

Specialty Retail — 0.2%
PetSmart, Inc., Term Loan, 03/11/22^(j)		USD		1,213	$	1,198,037


Wireless Telecommunication Services — 0.3%
Digicel International Finance Ltd., Term Loan, 05/27/24^(j)				409		363,610
Ligado Networks LLC, Term Loan, 14.39%, 12/07/20^(l)				711		133,951
New LightSquared LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%), 0.00%, 12/07/20				1,509		954,418

						1,451,979


Total Floating Rate Loan Interests — 8.5% (Cost: $50,178,444)						49,123,716


Preferred Securities — 2.0%

Capital Trusts — 2.0%^(d)(i)

Banks — 2.0%
Bank of America Corp.:
Series X, 6.25%				808		897,890
Series Z, 6.50%				584		662,840
Series AA, 6.10%				1,855		2,066,099
Series DD, 6.30%				240		277,200
CIT Group, Inc., Series A, 5.80%				295		303,112
JPMorgan Chase & Co.:
Series I, 5.41%				197		198,773
Series V, 5.42%				640		644,800
Series Q, 5.15%				190		198,550
Series S, 6.75%				240		271,020
Series U, 6.13%				99		108,157
Series FF, 5.00%				1,865		1,939,600
Series X, 6.10%				1,356		1,479,803
Wells Fargo & Co., Series U, 5.87%				1,646		1,831,175

						10,879,019

Capital Markets — 0.0%
Goldman Sachs Group, Inc. (The), Series P, 5.00%				207		208,553
Morgan Stanley, Series H, 5.61%				162		163,426

						371,979


Total Capital Trusts — 2.0% (Cost: $10,753,697)						11,250,998



	Shares

Trust Preferreds — 0.0%

Banks — 0.0%
GMAC Capital Trust I, Series 2, 7.69%, 02/15/40⁽ⁱ⁾				3,325		86,616


Total Trust Preferreds — 0.0% (Cost: $87,381)						86,616


Total Preferred Securities — 2.0% (Cost: $10,841,078)						11,337,614


Total Long-Term Investments — 96.5% (Cost: $539,217,498)						555,461,888


16		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

(Percentages shown are based on Net Assets)


Security	Shares		Value

Short-Term Securities — 3.1%^(m)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.51%^*		17,457,639	$	17,457,639
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.41%		277,797		277,797


Security	Shares	Value

Total Short-Term Securities — 3.1% (Cost: $17,735,436)		$	17,735,436


Total Investments — 99.6% (Cost: $556,952,934)			573,197,324

Other Assets Less Liabilities — 0.4%			2,198,857


Net Assets — 100.0%		$	575,396,181

^(a)	Non-income producing security.

^(b)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)	Issuer filed for bankruptcy and/or is in default.

^(d)	Perpetual security with no stated maturity date.

^(e)	Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(f)	Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

^(g)	Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(h)	Convertible security.

⁽ⁱ⁾	Variable rate security. Rate shown is the rate in effect as of period end.

^(j)	Represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.

^(k)	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(l)	Fixed rate.

^(m)	Annualized 7-day yield as of period end.

*	During the year ended December 31, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 12/31/19		Value at 12/31/19		Income		Net Realized Gain (Loss) ^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		21,772,561		(4,314,922	)		17,457,639	$	17,457,639	$	370,612	$	46	$	—

^(a)	Includes net capital gain distributions, if applicable.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.


SCHEDULE OF INVESTMENTS			17

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Forward Foreign Currency Exchange Contracts


	Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD		250,469	CAD	333,000	BNP Paribas SA		02/05/20	$	(6,014	)
USD		52,899	CAD	70,000	HSBC Bank plc		02/05/20		(1,016	)
USD		3,243,332	EUR	2,934,000	Natwest Markets plc		02/05/20		(54,671	)
USD		117,558	GBP	91,000	Barclays Bank plc		02/05/20		(3,097	)

Net Unrealized Depreciation								$	(64,798	)

Centrally Cleared Credit Default Swaps — Sell Protection

Reference Obligation/Index

Financing
Rate Received
by the Fund

Payment
Frequency

Termination
Date

Credit
Rating ^(a)

Notional
Amount
(000) ^(b)

Value

Upfront
Premium
Paid
(Received)

Unrealized
Appreciation
(Depreciation)

CDX.NA.HY33.V1

5.00

Quarterly

12/20/24

USD

9,515

932,475

615,411

317,064

^(a)	Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)	The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

OTC Credit Default Swaps — Sell Protection


Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency		Counterparty		Termination Date		Credit Rating ^(a)		Notional Amount (000) ^(b)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CenturyLink, Inc.		1.00	%		Quarterly		Barclays Bank plc		12/20/23	NR	USD		312	$	(5,808	)	$	(19,011	)	$	13,203
Chesapeake Energy Corp.		5.00	%		Quarterly		Barclays Bank plc		12/20/23	B+	USD		116		(44,586	)		176			(44,762	)
Chesapeake Energy Corp.		5.00	%		Quarterly		Barclays Bank plc		12/20/23	B+	USD		208		(79,947	)		1,549			(81,496	)
CenturyLink, Inc.		1.00	%		Quarterly		Barclays Bank plc		06/20/25	NR	USD		567		(37,710	)		(82,334	)		44,624

														$	(168,051	)	$	(99,620	)	$	(68,431	)

^(a)	Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)	The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps and OTC Swaps


	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps ^(a)	$	615,411	$	—		$	317,064	$	—
OTC Swaps		1,725		(101,345	)		57,827		(126,258	)

^(a)	Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.


18		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps^(a)	$	—	$	317,064	$	—	$	—	$	—	$	—	$	317,064
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		59,552		—		—		—		—		59,552

	$	—	$	376,616	$	—	$	—	$	—	$	—	$	376,616


Liabilities — Derivative Financial Instruments
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		64,798		—		—		64,798
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		227,603		—		—		—		—		227,603

	$	—	$	227,603	$	—	$	64,798	$	—	$	—	$	292,401

^(a)

Net cumulative unrealized appreciation (depreciation) on centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the year ended December 31, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	(494,944	)	$	—		$	58,895		$	—	$	(436,049	)
Forward foreign currency exchange contracts		—		—		—			341,784			—			—		341,784
Swaps		—		64,742		—			—			—			—		64,742

	$	—	$	64,742	$	(494,944	)	$	341,784		$	58,895		$	—	$	(29,523	)


Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—			—			(137,851	)		—		(137,851	)
Forward foreign currency exchange contracts		—		—		—			(2,304	)		—			—		(2,304	)
Swaps		—		424,929		—			—			—			—		424,929

	$	—	$	424,929	$	—		$	(2,304	)	$	(137,851	)	$	—	$	284,774

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — long	$	—	^(a)
Average notional value of contracts — short		922,285
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		8,381,244
Average amounts sold — in USD		3,302,468
Credit default swaps:
Average notional value — sell protection		9,519,473

^(a)	Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period.

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.


SCHEDULE OF INVESTMENTS			19

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:


	Assets		Liabilities
Derivative Financial Instruments:
Forward foreign currency exchange contracts	$	—	$	64,798
Swaps — Centrally cleared		—		11,643
Swaps — OTC ^(a)		59,552		227,603

Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	59,552	$	304,044
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		(11,643	)

Total derivative assets and liabilities subject to an MNA	$	59,552	$	292,401

^(a)	Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/received in the Statement of Assets and Liabilities.

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:


Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset ^(a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets
Barclays Bank plc	$	59,552	$	(59,552	)	$	—	$	—	$	—


Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset ^(a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities ^(b)
Barclays Bank plc	$	230,700	$	(59,552	)	$	—	$	—	$	171,148
BNP Paribas SA		6,014		—			—		—		6,014
HSBC Bank plc		1,016		—			—		—		1,016
Natwest Markets plc		54,671		—			—		—		54,671

	$	292,401	$	(59,552	)	$	—	$	—	$	232,849

^(a)	The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b)	Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Common Stocks ^(a)	$	5,101,451	$	—	$	—	$	5,101,451
Corporate Bonds ^(a)		—		489,899,107		—		489,899,107
Floating Rate Loan Interests:
Aerospace & Defense		—		287,653		—		287,653
Auto Components		—		513,826		—		513,826
Building Products		—		194,598		—		194,598
Capital Markets		—		564,648		—		564,648
Chemicals		—		1,433,855		612,033		2,045,888
Commercial Services & Supplies		—		4,366,011		—		4,366,011
Construction & Engineering		—		677,347		—		677,347
Containers & Packaging		—		641,134		—		641,134
Diversified Consumer Services		—		189,078		—		189,078
Diversified Financial Services		—		867,803		—		867,803


20		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund


	Level 1		Level 2			Level 3		Total
Diversified Telecommunication Services	$	—	$	1,424,811		$	—	$	1,424,811
Energy Equipment & Services		—		451,542			966,720		1,418,262
Entertainment		—		96,096			—		96,096
Food & Staples Retailing		—		110,102			—		110,102
Food Products		—		359,812			—		359,812
Health Care Equipment & Supplies		—		1,561,191			—		1,561,191
Health Care Providers & Services		—		3,124,811			—		3,124,811
Health Care Technology		—		1,218,036			—		1,218,036
Hotels, Restaurants & Leisure		—		738,016			—		738,016
Independent Power and Renewable Electricity Producers		—		126,301			—		126,301
Industrial Conglomerates		—		1,308,560			232,090		1,540,650
Insurance		—		2,596,504			—		2,596,504
IT Services		—		3,441,325			117,453		3,558,778
Life Sciences Tools & Services		—		1,222,668			—		1,222,668
Machinery		—		1,781,092			—		1,781,092
Media		—		5,405,798			250,552		5,656,350
Oil, Gas & Consumable Fuels		—		3,158,676			—		3,158,676
Pharmaceuticals		—		1,117,019			—		1,117,019
Professional Services		—		441,469			—		441,469
Road & Rail		—		1,110,023			—		1,110,023
Semiconductors & Semiconductor Equipment		—		180,587			—		180,587
Software		—		3,584,460			—		3,584,460
Specialty Retail		—		1,198,037			—		1,198,037
Wireless Telecommunication Services		—		1,451,979			—		1,451,979
Preferred Securities:
Banks		86,616		10,879,019			—		10,965,635
Capital Markets		—		371,979			—		371,979
Short-Term Securities		17,735,436		—			—		17,735,436
Unfunded Floating Rate Loan Interests ^(b)		—		29,247			—		29,247

	$	22,923,503	$	548,124,220		$	2,178,848	$	573,226,571

Derivative Financial Instruments ^(c)
Assets:
Credit contracts	$	—	$	374,891		$	—	$	374,891
Liabilities:
Credit contracts		—		(126,258	)		—		(126,258	)
Foreign currency exchange contracts		—		(64,798	)		—		(64,798	)

	$	—	$	183,835		$	—	$	183,835

^(a)	See above Schedule of Investments for values in each industry.

^(b)	Unfunded floating rate loan interests are valued at the unrealized appreciation (depreciation) on the commitment.

^(c)	Derivative financial instruments are swaps and forward foreign currency exchange contracts. Swaps and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.


SCHEDULE OF INVESTMENTS			21

Schedule of Investments (continued)

December 31, 2019

BlackRock High Yield V.I. Fund

A reconciliation of Level 3 investments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:


	Floating Rate Loan Interests			Unfunded Floating Rate Loan Interests			Total
Investments:
Assets/Liabilities:
Opening balance, as of December 31, 2018	$	6,063,675		$	(527	)	$	6,063,148
Transfers into level 3		118,911			—			118,911
Transfers out of level 3		(1,414,112	)		527			(1,413,585	)
Accrued discounts/premiums		12,603			—			12,603
Net realized loss		(31,274	)		—			(31,274	)
Net change in unrealized appreciation ^(a)(b)		152,704			—			152,704
Purchases		1,033,520			—			1,033,520
Sales		(3,757,179	)		—			(3,757,179	)

Closing balance, as of December 31, 2019	$	2,178,848		$	—		$	2,178,848

Net change in unrealized depreciation on investments still held at December 31, 2019 ^(b)	$	(18,614	)	$	—		$	(18,614	)

^(a)	Included in the related net change in unrealized appreciation (depreciation) in the Statement of Operations.

^(b)	Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at December 31, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

The Fund’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.

See notes to financial statements.


22		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Assets and Liabilities

December 31, 2019


	BlackRock High Yield V.I. Fund

ASSETS
Investments at value — unaffiliated (cost — $539,495,295)	$	555,739,685
Investments at value — affiliated (cost — $17,457,639)		17,457,639
Cash pledged for centrally cleared swaps		521,000
Foreign currency at value (cost — $291,842)		295,861
Receivables:
Investments sold		1,023,928
Capital shares sold		1,713,281
Dividends — affiliated		29,969
Dividends — unaffiliated		101
Interest — unaffiliated		8,213,162
Swap premiums paid		1,725
Unrealized appreciation on:
OTC swaps		57,827
Unfunded floating rate loan interests		29,247
Prepaid expenses		9,256

Total assets		585,092,681


LIABILITIES
Bank overdraft		60,703
Payables:
Investments purchased		6,346,873
Capital shares redeemed		20,607
Distribution fees		78,722
Income dividend distributions		2,284,478
Investment advisory fees		221,595
Directors’ and Officer’s fees		3,604
Other affiliates		3,111
Variation margin on centrally cleared swaps		11,643
Other accrued expenses		372,763
Swap premiums received		101,345
Unrealized depreciation on:
Forward foreign currency exchange contracts		64,798
OTC swaps		126,258

Total liabilities		9,696,500


NET ASSETS	$	575,396,181


NET ASSETS CONSIST OF
Paid-in capital	$	572,339,396
Accumulated earnings		3,056,785

NET ASSETS	$	575,396,181


NET ASSET VALUE
Class I — Based on net assets of $178,147,031 and 23,981,587 shares outstanding, 200 million shares authorized, $0.10 par value	$	7.43

Class III — Based on net assets of $397,249,150 and 53,510,611 shares outstanding, 100 million shares authorized, $0.10 par value	$	7.42

See notes to financial statements.


FINANCIAL STATEMENTS			23

Statement of Operations

Year Ended December 31, 2019


	BlackRock High Yield V.I. Fund

INVESTMENT INCOME
Dividends — affiliated	$	370,612
Dividends — unaffiliated		99,864
Interest — unaffiliated		29,732,505

Total investment income		30,202,981


EXPENSES
Investment advisory		2,394,677
Distribution — class specific		847,988
Transfer agent — class specific		812,426
Accounting services		133,434
Professional		85,150
Printing		58,541
Custodian		41,833
Directors and Officer		6,195
Transfer agent		5,599
Miscellaneous		21,902

Total expenses		4,407,745
Less:
Fees waived and/or reimbursed by the Manager		(13,100)
Transfer agent fees waived and/or reimbursed — class specific		(538,616)

Total expenses after fees waived and/or reimbursed		3,856,029

Net investment income		26,346,952


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		(2,874,187)
Capital gain distributions from investment companies — affiliated		46
Forward foreign currency exchange contracts		341,784
Foreign currency transactions		(25,174)
Futures contracts		(436,049)
Swaps		64,742

		(2,928,838)

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		45,316,682
Forward foreign currency exchange contracts		(2,304)
Foreign currency translations		(6,751)
Futures contracts		(137,851)
Swaps		424,929
Unfunded floating rate loan interests		30,432

		45,625,137

Net realized and unrealized gain		42,696,299

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	69,043,251

See notes to financial statements.


24		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statements of Changes in Net Assets


	BlackRock High Yield V.I. Fund
	Year Ended December 31,
	2019		2018

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income	$	26,346,952	$	24,175,311
Net realized loss		(2,928,838)		(3,228,636)
Net change in unrealized appreciation (depreciation)		45,625,137		(34,525,623)

Net increase (decrease) in net assets resulting from operations		69,043,251		(13,578,948)


DISTRIBUTIONS TO SHAREHOLDERS^(a)
Class I		(9,356,058)		(10,593,725)
Class III		(17,474,280)		(14,484,449)

Decrease in net assets resulting from distributions to shareholders		(26,830,338)		(25,078,174)


CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		103,576,572		22,839,455


NET ASSETS
Total increase (decrease) in net assets		145,789,485		(15,817,667)
Beginning of year		429,606,696		445,424,363

End of year	$	575,396,181	$	429,606,696

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


FINANCIAL STATEMENTS			25

Financial Highlights

(For a share outstanding throughout each period)


	BlackRock High Yield V.I. Fund

	Class I

	Year Ended December 31,
	2019			2018			2017			2016			2015


Net asset value, beginning of year	$	6.80		$	7.39		$	7.24		$	6.77		$	7.44

Net investment income^(a)		0.38			0.38			0.38			0.37			0.36
Net realized and unrealized gain (loss)		0.64			(0.57	)		0.15			0.48			(0.61	)

Net increase (decrease) from investment operations		1.02			(0.19	)		0.53			0.85			(0.25	)


Distributions from net investment income^(b)		(0.39	)		(0.40	)		(0.38	)		(0.38	)		(0.42	)


Net asset value, end of year	$	7.43		$	6.80		$	7.39		$	7.24		$	6.77


Total Return^(c)
Based on net asset value		15.29%			(2.79	)%		7.48%			12.92%			(3.60)%


Ratios to Average Net Assets^(d)
Total expenses		0.70%			0.77%			0.78%			0.80%			0.84%

Total expenses after fees waived and/or reimbursed		0.59%			0.63%			0.67%			0.68%			0.70%

Net investment income		5.28%			5.30%			5.13%			5.29%			4.86%


Supplemental Data
Net assets, end of year (000)	$	178,147		$	185,736		$	201,945		$	152,835		$	127,742

Portfolio turnover rate		83%			79%			75%			89%			73%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)	Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:


	Year Ended December 31,
	2019		2018		2017		2016		2015

Investments in underlying funds		0.01%		0.01%		0.01%		0.01%		0.01%

See notes to financial statements.


26		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock High Yield V.I. Fund

	Class III

	Year Ended December 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	6.80		$	7.38		$	7.24		$	6.76		$	7.43

Net investment income^(a)		0.37			0.36			0.36			0.36			0.34
Net realized and unrealized gain (loss)		0.62			(0.56	)		0.14			0.48			(0.61	)

Net increase (decrease) from investment operations		0.99			(0.20	)		0.50			0.84			(0.27	)


Distributions from net investment income^(b)		(0.37	)		(0.38	)		(0.36	)		(0.36	)		(0.40	)


Net asset value, end of year	$	7.42		$	6.80		$	7.38		$	7.24		$	6.76


Total Return^(c)
Based on net asset value		14.86%			(2.89	)%		7.08%			12.82%			(3.85)%


Ratios to Average Net Assets^(d)
Total expenses		0.94%			1.02%			1.03%			1.00%			1.06%

Total expenses after fees waived and/or reimbursed		0.83%			0.87%			0.92%			0.92%			0.94%

Net investment income		5.06%			5.05%			4.87%			5.05%			4.63%


Supplemental Data
Net assets, end of year (000)	$	397,249		$	243,871		$	243,479		$	190,149		$	95,139

Portfolio turnover rate		83%			79%			75%			89%			73%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)	Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:


	Year Ended December 31,
	2019		2018		2017		2016		2015
Investments in underlying funds		0.01%		0.01%		0.01%		0.01%		0.01%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			27

Notes to Financial Statements

1.	*ORGANIZATION*

BlackRock Variable Series Funds II, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation that is comprised of 3 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and variable life insurance contracts. The financial statements presented are for BlackRock High Yield V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

2.	*SIGNIFICANT ACCOUNTING POLICIES*

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), which may require management to make estimates and assumptions that affect the reported amounts of assets and liabilities in the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the portion of the results of operations arising as a result of changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for U.S. federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts, forward foreign currency exchange contracts and swaps) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Board of Directors of the Fund (the “Board”) effective January 1, 2019, the directors who are not “interested persons” of the Fund, as defined in the 1940 Act (“Independent Directors”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of the Fund, as applicable. Deferred compensation liabilities are included in the Directors’ and Officer’s fees payable in the Statement of Assets and Liabilities and will remain as a liability of the Fund until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the fiscal period ended December 31, 2019. The adjusted cost basis of securities at December 31, 2018 is $460,695,656. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value (“NAV”) of the Fund.


28		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

Other: Expenses directly related to the Fund or its classes are charged to the Fund or the applicable class. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods.

3.	*INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS*

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the NYSE (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

•

Equity investments traded on a recognized securities exchange are valued at the official closing price each day, if available. For equity investments traded on more than one exchange, the official closing price on the exchange where the stock is primarily traded is used. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last available bid (long positions) or ask (short positions) price.

•

Fixed-income securities for which market quotations are readily available are generally valued using the last available bid prices or current market quotations provided by independent dealers or third party pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more independent brokers or dealers as obtained from a third party pricing service. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots may trade at lower prices than institutional round lots. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of trading on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded and over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of trading on the NYSE, which follows the close of the local markets.

•

Investments in open-end U.S. mutual funds are valued at NAV each business day.

•

Futures contracts traded on exchanges are valued at their last sale price.

•

Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

•

Swap agreements are valued utilizing quotes received daily by the Fund’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.


NOTES TO FINANCIAL STATEMENTS			29

Notes to Financial Statements (continued)

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Global Valuation Committee and third party pricing services utilize one or a combination of, but not limited to, the following inputs.


		Standard Inputs Generally Considered By Third Party Pricing Services
Market approach		(i) recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii) market multiples of comparable issuers.
Income approach		(i) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach		(i) audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii) relevant news and other public sources; and (iv) known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing market approach in determining the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”) or a hybrid of those techniques are used in allocating enterprise value of the company, as deemed appropriate under the circumstances. The use of OPM and PWERM techniques involve a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

The Private Companies are not subject to the public company disclosure, timing, and reporting standards as other investments held by the Fund. Typically, the most recently available information by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

•

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

•

Level 2 — Other observable inputs (including, but not limited to, quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

•

Level 3 — Unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Global Valuation Committee’s assumptions used in determining the fair value of investments and derivative financial instruments)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.	*SECURITIES AND OTHER INVESTMENTS*

Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior


30		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.

When a fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, a fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. A fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a fund having a contractual relationship only with the lender, not with the borrower. A fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a fund assumes the credit risk of both the borrower and the lender that is selling the Participation. A fund’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a fund having a direct contractual relationship with the borrower, and a fund may enforce compliance by the borrower with the terms of the loan agreement.

In connection with floating rate loan interests, the fund may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, the fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statement of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation (depreciation) is included in the Statement of Assets and Liabilities and Statement of Operations. As of period end, the fund had the following unfunded floating rate loan interests:


Borrower	Par		Commitment Amount		Value		Unrealized Appreciation (Depreciation)
McDermott International, Inc., Term Loan	$	276,951	$	267,258	$	282,213	$	14,955
Triton Bidco, Term Loan B		594,010		582,129		596,421		14,292

5.	*DERIVATIVE FINANCIAL INSTRUMENTS*

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.


NOTES TO FINANCIAL STATEMENTS			31

Notes to Financial Statements (continued)

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Fund are denominated and in some cases, may be used to obtain exposure to a particular market.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount(s) reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities.

Swaps: Swap contracts are entered into to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Statement of Assets and Liabilities. Payments received or paid are recorded in the Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker a variation margin. Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.

•

Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).

The Fund may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Fund will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Fund will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risk in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.


32		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from its counterparties are not fully collateralized, it bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, it bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

6.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee based on a percentage of the aggregate average daily net assets of the Fund and BlackRock Total Return V.I. Fund, a series of the Company, at the following annual rates:


Average Daily Net Assets	Investment Advisory Fees
First $250 Million		0.55	%
$250 Million — $500 Million		0.50
$500 Million — $750 Million		0.45
Greater than $750 Million		0.40

For the year ended December 31, 2019, the aggregate average daily net assets of the Fund and BlackRock Total Return V.I. Fund were approximately $1,116,375,659.

Distribution Fees: The Company, on behalf of the Fund, entered into a Distribution Agreement and a Distribution Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution Plan and in accordance with Rule 12b-1 under the 1940 Act, the Fund pays BRIL ongoing distribution fees. The fees are accrued daily and paid monthly at an annual rate of 0.25% based upon the average daily net assets attributable to Class III.

BRIL and broker-dealers, pursuant to sub-agreements with BRIL, provide shareholder distribution services to the Fund. The ongoing distribution fee compensates BRIL and each broker-dealer for providing shareholder distribution related services to shareholders.

For the year ended December 31, 2019, the class specific distribution fees borne directly by Class III were $847,988.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping, sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations, which is shown as transfer agent — class specific. For the year ended December 31, 2019, the Fund did not pay any amounts to affiliates in return for these services.

In addition, the Fund pays the transfer agent, which is not an affiliate, a fee for the issuance, transfer and redemption of shares and the opening and maintenance of shareholder accounts, which is included in transfer agent in the Statement of Operations.

For the year ended December 31, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:


Class I	$	282,002
Class III		530,424
	$	812,426

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitations described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2019, the amount waived was $13,100.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended December 31, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the year ended December 31, 2019, the Fund reimbursed the Manager $6,288 for certain accounting services, which is included in accounting services in the Statement of Operations.


NOTES TO FINANCIAL STATEMENTS			33

Notes to Financial Statements (continued)

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:


Class I	0.06	%
Class III	0.05

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2020, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund.

These amounts waived and/or reimbursed are included in transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the year ended December 31, 2019, class specific expense waivers and/or reimbursements are as follows:


	Transfer Agent Fees Waived and/or Reimbursed
Class I	$	177,865
Class III		360,751
	$	538,616

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitations”). These expense limitations as a percentage of average daily net assets are as follows:


Class I	1.25	%
Class III	1.50

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended December 31, 2019, the Fund did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Company are directors and/or officers of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Company’s Chief Compliance Officer, which is included in Directors and Officer in the Statement of Operations.

Other Transactions: The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the year ended December 31, 2019, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:


Purchases	$	1,709,818
Sales		13,044,185
Net Realized Gain		444,033

7.	*PURCHASES AND SALES*

For the year ended December 31, 2019, purchases and sales of investments, including paydowns and excluding short-term securities, were $513,668,660 and $407,790,581, respectively.

8.	*INCOME TAX INFORMATION*

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for each of the four years ended December 31, 2019. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.


34		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

Management has analyzed tax laws and regulations and their application to the Fund as of December 31, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

The tax character of distributions paid was as follows:


	12/31/19		12/31/18
Ordinary income	$	26,830,338	$	25,078,174

As of period end, the tax components of accumulated earnings were as follows:


Undistributed ordinary income	$	160,322
Non-expiring capital loss carryforwards ^(a)		(11,692,295)
Net unrealized gains ^(b)		14,588,758

	$	3,056,785

^(a)	Amount available to offset future realized capital gains.

^(b)

The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/ losses on certain futures and foreign currency contracts, the accounting for swap agreements and the classification of investments.

As of December 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:


Tax cost	$	558,880,709

Gross unrealized appreciation	$	19,100,252
Gross unrealized depreciation		(4,490,640)

Net unrealized appreciation	$	14,609,612

9.	*BANK BORROWINGS*

The Company, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended December 31, 2019, the Fund did not borrow under the credit agreement.

10.

PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force the Fund to reinvest in lower yielding securities. The Fund may also be exposed to reinvestment risk, which is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called fixed-income securities at market interest rates that are below the Fund portfolio’s current earnings rate.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests.


NOTES TO FINANCIAL STATEMENTS			35

Notes to Financial Statements (continued)

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

With exchange-traded futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: Certain Funds may invest in securities that are rated below investment grade quality (sometimes called “junk bonds”), which are predominantly speculative, have greater credit risk and generally are less liquid than, and have more volatile prices than, higher quality securities.

The Fund invests a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:


	Year Ended 12/31/19				Year Ended 12/31/18
	Shares		Amount		Shares		Amount
Class I
Shares sold		7,593,809	$	55,369,906		5,042,504	$	36,340,639
Shares issued in reinvestment of distributions		1,308,440		9,425,674		1,458,219		10,550,832
Shares redeemed		(12,221,914)		(88,379,054)		(6,544,646)		(47,246,857)

Net decrease		(3,319,665)	$	(23,583,474)		(43,923)	$	(355,386)

Class III
Shares sold		42,635,935	$	307,644,405		33,609,633	$	243,303,797
Shares issued in reinvestment of distributions		2,356,193		17,002,418		1,977,382		14,290,069
Shares redeemed		(27,351,268)		(197,486,777)		(32,705,712)		(234,399,025)

Net increase		17,640,860	$	127,160,046		2,881,303	$	23,194,841

Total Net Increase		14,321,195	$	103,576,572		2,837,380	$	22,839,455

12.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.


36		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock High Yield V.I. Fund and the Board of Directors of BlackRock Variable Series Funds II, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of BlackRock High Yield V.I. Fund of BlackRock Variable Series Funds II, Inc. (the “Fund”), including the schedule of investments, as of December 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian, agent banks and brokers; when replies were not received from agent banks or brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

February 14, 2020

We have served as the auditor of one or more BlackRock investment companies since 1992.


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			37

Glossary of Terms Used in this Report

Currency



CAD		Canadian Dollar

EUR		Euro

GBP		British Pound

USD		United States Dollar

Portfolio Abbreviations

DAC		Designated Activity Company

LIBOR		London Interbank Offered Rate

MSCI		Morgan Stanley Capital International

OTC		Over-the-counter

PIK		Payment-In-Kind

REIT		Real Estate Investment Trust


38		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


		DECEMBER 31, 2019



		2019 Annual Report

BlackRock Variable Series Funds II, Inc.

BlackRock Total Return V.I. Fund

Not FDIC Insured - May Lose Value - No Bank Guarantee


Fund Summary as of December 31, 2019		BlackRock Total Return V.I. Fund

Investment Objective

BlackRock Total Return V.I. Fund’s (the “Fund”) investment objective is to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended December 31, 2019, the Fund outperformed its benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index.

What factors influenced performance?

An above-benchmark stance with respect to portfolio duration (and corresponding sensitivity to changes in interest rates) was the leading positive contributor to Fund performance as Treasury yields declined over the period. The Fund’s overweighting of U.S. investment grade corporate bonds also added to relative performance as the asset class benefited from tightening credit spreads. Allocations to non-agency mortgage-backed securities (“MBS”) and collateralized loan obligations contributed to performance as well.

The Fund’s foreign exchange exposure and absolute return strategies detracted from performance during the period.

Describe recent portfolio activity.

The Fund began the period positioned around the Fed’s dovish shift in monetary policy. The Fund’s investment adviser started to increase duration on the view that with a near-neutral policy rate U.S. interest rates would likely remain range-bound in the near term. With the Fed committed to underwriting the economic expansion, the investment adviser believed duration had become a means to manage risk against credit exposure in the portfolio. After the aggressive re-pricing in spread assets at the end of 2018, the Fund used the opportunity to add in investment grade corporate credit while holding a higher quality bias within the asset class. Outside of the United States, the Fund became modestly constructive on emerging market debt on the view that the global easing of monetary policy should be supportive for the asset class, tactically adding back some exposure in local currency bonds.

During the latter portion of the period, the Fund maintained a relatively long duration position while favoring the front end of the U.S. yield curve. As the European Central Bank delivered on its easing package, the Fund increased its European sovereign debt exposure including to longer maturities in Germany, France and Italy. The Fund reduced exposure in investment grade credit given rich valuations while adding to agency MBS given the robust demand and attractive relative value compared to other high-quality spread assets. The Fund also increased its exposure to inflation-protected bonds that could benefit from any modest uptick in global growth.

Describe portfolio positioning at period end.

The Fund somewhat reduced its overweight duration stance and held exposure further in on the curve relative to most of the second half of 2019. The Fund was underweight in investment grade corporate credit given valuation concerns while overweighting agency MBS. The investment adviser favored agency MBS on the view that demand from banks and foreign investors should remain supportive and that prepayment speeds will likely be slower than market expectations. The Fund had exposure to inflation-protected bonds, which could benefit from a weaker dollar, a strong labor market and a bottoming out in global growth.


2		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of December 31, 2019 (continued)		BlackRock Total Return V.I. Fund

TOTAL RETURN BASED ON A $10,000 INVESTMENT

LOGO

^(a)

Assuming transaction costs, if any, and other operating expenses, including investment advisory fees. Does not include insurance-related fees and expenses. The returns for Class III Shares prior to August 14, 2012, the recommencement of operations of Class III Shares, are based upon the performance of Class I Shares of the Predecessor Fund (as defined below), as adjusted to reflect the distribution and/or service (12b-1) fees applicable to Class III Shares.

^(b)

Under normal circumstances, the Fund invests at least 80%, and typically invests 90% or more, of its assets in fixed income securities, such as corporate bonds and notes, mortgage-backed securities, asset-backed securities, convertible securities, preferred securities, government obligations and money market securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Total Return V.I. Fund (the “Predecessor Fund”), a series of BlackRock Variable Series Funds, Inc., through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)	A widely recognized unmanaged market-weighted index, comprised of investment-grade corporate bonds rated BBB or better, mortgages and U.S. Treasury and U.S. Government agency issues with at least one year to maturity.

Performance Summary for the Period Ended December 31, 2019


	Standardized 30-Day Yields^(b)			Unsubsidized 30-Day Yields^(b)			6-Month Total Returns ^(a)			Average Annual Total Returns ^(a)
	Standardized 30-Day Yields^(b)			Unsubsidized 30-Day Yields^(b)			6-Month Total Returns ^(a)			1 Year			5 Years			10 Years
Class I ^(c)		2.47	%		2.14	%		2.57	%		9.49	%		3.07	%		4.45	%
Class III^(c)		2.16			1.90			2.43			9.05			2.74			4.14	^(d)
Bloomberg Barclays U.S. Aggregate Bond Index		—			—			2.45			8.72			3.05			3.75

^(a)

For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

^(c)

Average annual and cumulative total returns are based on changes in net asset value for the periods shown, and assume reinvestment of all distributions at net asset value on the ex-dividend/payable date. Insurance-related fees and expenses are not reflected in these returns. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund, a series of BlackRock Variable Series Funds Inc., through the Reorganization. The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(d)

The returns for Class III Shares prior to August 14, 2012, the recommencement of operations of Class III Shares, are based upon the performance of the Predecessor Fund’s Class I Shares, as adjusted to reflect the distribution (12b-1) fees applicable to Class III Shares.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


FUND SUMMARY			3


Fund Summary as of December 31, 2019 (continued)		BlackRock Total Return V.I. Fund

Expense Example


	Actual								Hypothetical ^(a)
					Including interest expense and Fees		Excluding interest expense and Fees				Including interest expense and Fees				Excluding interest expense and Fees
	Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period ^(b)		Expenses Paid During the Period ^(c)		Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period^(b)		Ending Account Value (12/31/19)		Expenses Paid During the Period^(c)
Class I	$	1,000.00	$	1,025.70	$	2.91	$	2.76	$	1,000.00	$	1,022.33	$	2.91	$	1,022.48	$	2.75
Class III		1,000.00		1,024.30		4.49		4.34		1,000.00		1,020.77		4.48		1,020.92		4.33

^(a)	Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)	For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.57% for Class I and 0.88% for Class III), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

^(c)	For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.54% for Class I and 0.85% for Class III), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 5 for further information on how expenses were calculated.

Portfolio Information

PORTFOLIO COMPOSITION


Asset Type	Percent of Total Investments^(a)
U.S. Government Sponsored Agency Securities		38	%
Corporate Bonds		24
U.S. Treasury Obligations		19
Asset-Backed Securities		6
Municipal Bonds		4
Non-Agency Mortgage-Backed Securities		3
Investment Companies		3
Foreign Government Obligations		2
Foreign Agency Obligations		1
Floating Rate Loan Interests		_	^(b)
Capital Trusts		_	^(b)
Other Interests		_	^(b)

^(a)

Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(b)

Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION


Credit Rating^(a)	Percent of Total Investments^(b)
AAA/Aaa ^(c)		62	%
AA/Aa		5
A		15
BBB/Baa		12
BB/Ba		1
B		1
CCC/Caa		—	^(d)
CC/Ca		1
C		—	^(d)
NR		3

^(a)

For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)

Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(c)

The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.

^(d)

Represents less than 1% of the Fund’s total investments.


4		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

The Benefits and Risks of Leveraging

The Fund may utilize leverage to seek to enhance returns and net asset value (“NAV”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

The Fund may utilize leverage by entering into reverse repurchase agreements.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by the Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of the Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Fund’s shareholders benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is distributed to the Fund’s shareholders, and the value of these portfolio holdings is reflected in the Fund’s per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed the Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Fund had not used leverage.

Furthermore, the value of the Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence the Fund’s NAV positively or negatively in addition to the impact on the Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that the Fund’s leveraging strategy will be successful.

The use of leverage also generally causes greater changes in the Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of the Fund’s shares than if the Fund were not leveraged. In addition, the Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Fund to incur losses. The use of leverage may limit the Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. The Fund incurs expenses in connection with the use of leverage, all of which are borne by the Fund’s shareholders and may reduce income.

Disclosure of Expenses

Derivative Financial Instruments


THE BENEFITS AND RISKS OF LEVERAGING / DISCLOSURE OF EXPENSES / DERIVATIVE FINANCIAL INSTRUMENTS			5

Schedule of Investments

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Asset-Backed Securities — 7.3%
Accredited Mortgage Loan Trust, Series 2006-1, Class M2, (LIBOR USD 1 Month + 0.34%), 2.13%, 04/25/36^(a)	USD	190	$	104,026
ACE Securities Corp. Home Equity Loan Trust^(a):
Series 2003-OP1, Class A2, (LIBOR USD 1 Month + 0.72%), 2.51%, 12/25/33		122		119,867
Series 2007-HE4, Class A2A, (LIBOR USD 1 Month + 0.13%), 1.92%, 05/25/37		96		25,675
Adams Mill CLO Ltd., Series 2014-1A, Class A2R, (LIBOR USD 3 Month + 1.10%), 3.10%, 07/15/26^(a)(b)		180		179,816
Ajax Mortgage Loan Trust^(b):
Series 2017-D, Class A, 3.75%, 12/25/57		336		345,608
Series 2018-A, Class A, 3.85%, 04/25/58^(c)		326		325,954
Series 2018-A, Class B, 0.00%, 04/25/58^(c)		90		51,920
Series 2018-B, Class A, 3.75%, 02/26/57^(c)		243		242,724
Series 2018-B, Class B, 0.00%, 02/26/57^(c)		100		27,885
Series 2018-D, Class A, 3.75%, 08/25/58^(c)(d)		369		371,767
Series 2018-D, Class B, 0.00%, 08/25/58^(c)(d)		110		61,399
Series 2018-E, Class A, 4.38%, 06/25/58^(d)		206		208,507
Series 2018-E, Class B, 5.25%, 06/25/58^(c)(d)		100		100,590
Series 2018-E, Class C, 0.00%, 06/25/58^(c)(d)		98		29,371
Series 2018-F, Class A, 4.38%, 11/25/58^(c)(d)		674		679,852
Series 2018-F, Class B, 5.25%, 11/25/58^(c)(d)		111		110,346
Series 2018-F, Class C, 0.00%, 11/25/58^(c)		246		119,971
Series 2018-G, Class A, 4.38%, 06/25/57^(c)(d)		603		604,872
Series 2018-G, Class B, 5.25%, 06/25/57^(c)(d)		103		101,321
Series 2018-G, Class C, 5.25%, 06/25/57^(c)		227		213,331
Series 2019-A, Class A, 3.75%, 08/25/57^(d)		607		610,131
Series 2019-A, Class B, 5.25%, 08/25/57^(c)(d)		100		98,120
Series 2019-A, Class C, 0.00%, 08/25/57^(c)		185		145,328
Series 2019-B, Class A, 3.75%, 01/25/59^(d)		1,034		1,036,794
Series 2019-B, Class B, 5.25%, 01/25/59^(c)(d)		117		114,871
Series 2019-B, Class C, 0.00%, 01/25/59^(c)		299		244,265
Allegro CLO ll-S Ltd., Series 2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 3.05%, 10/21/28^(a)(b)		500		498,182
Allegro CLO V Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.24%), 3.24%, 10/16/30^(a)(b)		250		249,732
ALM V Ltd.^(a)(b):
Series 2012-5A, Class A1R3, (LIBOR USD 3 Month + 0.91%), 2.91%, 10/18/27		290		289,784
Series 2012-5A, Class A2R3, (LIBOR USD 3 Month + 1.25%), 3.25%, 10/18/27		250		247,245
Series 2012-5A, Class BR3, (LIBOR USD 3 Month + 1.65%), 3.65%, 10/18/27		250		247,262
ALM VII R Ltd., Series 2013-7RA, Class A1R, (LIBOR USD 3 Month + 1.41%), 3.41%, 10/15/28^(a)(b)		250		249,367
ALM VIII Ltd., Series 2013-8A, Class A1R, (LIBOR USD 3 Month + 1.49%), 3.49%, 10/15/28^(a)(b)		380		380,570
ALM XII Ltd., Series 2015-12A, Class A1R2, (LIBOR USD 3 Month + 0.89%), 2.89%, 04/16/27^(a)(b)		207		206,768
ALM XVI Ltd., Series 2015-16A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 3.50%, 07/15/27^(a)(b)		255		252,512
American Homes 4 Rent Trust, Series 2014-SFR3, Class A, 3.68%, 12/17/36^(b)		182		189,103
Anchorage Capital CLO 1-R Ltd., Series 2018-1RA, Class A1, (LIBOR USD 3 Month + 0.99%), 2.99%, 04/13/31^(a)(b)		310		305,178


Security	Par (000)		Value

Asset-Backed Securities (continued)
Anchorage Capital CLO 4-R Ltd.^(a)(b):
Series 2014-4RA, Class A, (LIBOR USD 3 Month + 1.05%), 2.99%, 01/28/31	USD	250	$	248,465
Series 2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 3.79%, 01/28/31		250		241,375
Anchorage Capital CLO 5-R Ltd.^(a)(b):
Series 2014-5RA, Class B, (LIBOR USD 3 Month + 1.45%), 3.45%, 01/15/30		500		493,296
Series 2014-5RA, Class C, (LIBOR USD 3 Month + 1.85%), 3.85%, 01/15/30		250		242,687
Anchorage Capital CLO 6 Ltd., Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.27%), 3.27%, 07/15/30^(a)(b)		250		249,331
Anchorage Capital CLO 7 Ltd., Series 2015-7A, Class AR, (LIBOR USD 3 Month + 0.96%), 2.96%, 10/15/27^(a)(b)		750		749,453
Anchorage Capital CLO Ltd., Series 2013-1A, Class AIR, (LIBOR USD 3 Month + 1.25%), 3.24%, 10/13/30^(a)(b)		250		248,645
Apidos CLO XII, Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.08%, 04/15/31^(a)(b)		500		496,681
Apidos CLO XV, Series 2013-15A, Class AIRR, (LIBOR USD 3 Month + 1.01%), 2.98%, 04/20/31^(a)(b)		500		494,478
Arbor Realty CLO Ltd., Series 2017-FL3, Class A, (LIBOR USD 1 Month + 0.99%), 2.73%, 12/15/27^(a)(b)		130		130,018
Arbor Realty Commercial Real Estate Notes Ltd., Series 2017-FL2, Class A, (LIBOR USD 1 Month + 0.99%), 2.73%, 08/15/27^(a)(b)		250		250,023
Ares XXXVII CLO Ltd., Series 2015-4A, Class A1R, (LIBOR USD 3 Month + 1.17%), 3.17%, 10/15/30^(a)(b)		250		250,325
Argent Mortgage Loan Trust, Series 2005-W1, Class A2, (LIBOR USD 1 Month + 0.48%), 2.27%, 05/25/35^(a)		50		47,317
Avery Point V CLO Ltd., Series 2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 2.98%, 07/17/26^(a)(b)		152		151,720
Avery Point VI CLO Ltd., Series 2015-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.39%, 08/05/27^(a)(b)		250		248,358
B2R Mortgage Trust, Series 2015-2, Class A, 3.34%, 11/15/48^(b)		23		22,869
Babson CLO Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.19%), 3.16%, 10/20/30^(a)(b)		260		260,511
BankAmerica Manufactured Housing Contract Trust, Series 1998-2, Class B1, 7.56%, 12/10/25^(d)		300		168,188
Battalion CLO X Ltd., Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.19%, 01/24/29^(a)(b)		940		940,277
Bayview Financial Revolving Asset Trust^(a)(b):
Series 2004-B, Class A1, (LIBOR USD 1 Month + 1.00%), 2.80%, 05/28/39		119		110,146
Series 2005-A, Class A1, (LIBOR USD 1 Month + 1.00%), 2.80%, 02/28/40		158		152,652
Series 2005-E, Class A1, (LIBOR USD 1 Month + 1.00%), 2.80%, 12/28/40		61		60,956
BCMSC Trust^(d):
Series 2000-A, Class A2, 7.58%, 06/15/30		40		12,847
Series 2000-A, Class A3, 7.83%, 06/15/30		37		12,330
Series 2000-A, Class A4, 8.29%, 06/15/30		27		9,447


6		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Asset-Backed Securities (continued)
BDS Ltd., Series 2019-FL3, Class A, (LIBOR USD 1 Month + 1.40%), 3.14%, 12/15/35^(a)(b)		USD 200	$	200,157
Bear Stearns Asset-Backed Securities I Trust^(a):
Series 2007-FS1, Class 1A3, (LIBOR USD 1 Month + 0.17%), 1.96%, 05/25/35		73		80,054
Series 2007-HE2, Class 23A, (LIBOR USD 1 Month + 0.14%), 1.93%, 03/25/37		46		48,589
Series 2007-HE3, Class 1A4, (LIBOR USD 1 Month + 0.35%), 2.14%, 04/25/37		195		179,140
Bear Stearns Asset-Backed Securities Trust, Series 2005-4, Class M2, (LIBOR USD 1 Month + 1.20%), 2.99%, 01/25/36^(a)		4		3,821
Benefit Street Partners CLO VI Ltd., Series 2015-VIA, Class A1R, (LIBOR USD 3 Month + 1.24%), 3.24%, 10/18/29^(a)(b)		250		250,003
BlueMountain CLO Ltd.^(a)(b):
Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.23%), 3.20%, 01/20/29		310		309,681
Series 2013-2A, Class A1R, (LIBOR USD 3 Month + 1.18%), 3.13%, 10/22/30		500		499,592
California Street CLO XII Ltd., Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.03%), 3.03%, 10/15/25^(a)(b)		148		148,411
Carrington Mortgage Loan Trust^(a):
Series 2006-NC4, Class A3, (LIBOR USD 1 Month + 0.16%), 1.95%, 10/25/36		76		70,881
Series 2007-RFC1, Class A4, (LIBOR USD 1 Month + 0.22%), 2.01%, 10/25/36		100		84,275
CBAM Ltd., Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.22%, 07/20/30^(a)(b)		250		250,287
C-BASS Trust, Series 2006-CB7, Class A4, (LIBOR USD 1 Month + 0.16%), 1.95%, 10/25/36^(a)		57		43,058
Cedar Funding II CLO Ltd.^(a)(b):
Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.23%), 3.12%, 06/09/30		250		250,110
Series 2013-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 3.63%, 06/09/30		250		249,051
Cedar Funding VI CLO Ltd., Series 2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 3.06%, 10/20/28^(a)(b)		430		429,696
Cedar Funding VIII CLO Ltd., Series 2017-8A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.25%, 10/17/30^(a)(b)		510		510,256
CIFC Funding Ltd.^(a)(b):
Series 2013-2A, Class A1LR, (LIBOR USD 3 Month + 1.21%), 3.21%, 10/18/30		230		230,075
Series 2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 3.13%, 10/17/30		540		538,224
Citicorp Residential Mortgage Trust, Series 2007-2, Class M1, 5.06%, 06/25/37^(e)		100		97,275
Citigroup Mortgage Loan Trust^(a):
Series 2007-AHL2, Class A3B, (LIBOR USD 1 Month + 0.20%), 1.99%, 05/25/37		235		170,551
Series 2007-AHL2, Class A3C, (LIBOR USD 1 Month + 0.27%), 2.06%, 05/25/37		106		78,122
Citigroup Mortgage Loan Trust, Inc., Series 2006-WFH4, Class M3, (LIBOR USD 1 Month + 0.32%), 2.11%,11/25/36^(a)		100		88,960
Conseco Finance Corp.:
Series 1997-3, Class M1, 7.53%, 03/15/28^(d)		46		46,504
Series 1997-6, Class M1, 7.21%, 01/15/29^(d)		30		30,623
Series 1998-8, Class M1, 6.98%, 09/01/30^(d)		107		95,778
Series 1999-5, Class A5, 7.86%, 03/01/30^(d)		30		19,521
Series 1999-5, Class A6, 7.50%, 03/01/30^(d)		31		19,944


Security	Par (000)		Value

Asset-Backed Securities (continued)
Series 2001-D, Class B1, (LIBOR USD 1 Month + 2.50%), 4.24%, 11/15/32^(a)		USD 74	$	72,351
Conseco Finance Securitizations Corp.:
Series 2000-1, Class A5, 8.06%, 09/01/29^(d)		56		23,030
Series 2000-4, Class A6, 8.31%, 05/01/32^(d)		151		62,407
Series 2000-5, Class A7, 8.20%, 05/01/31		143		77,412
Countrywide Asset-Backed Certificates^(a):
Series 2006-S10, Class A3, (LIBOR USD 1 Month + 0.32%), 2.11%, 10/25/36		30		29,004
Series 2006-SPS1, Class A, (LIBOR USD 1 Month + 0.22%), 2.01%, 12/25/25		2		1,913
Credit-Based Asset Servicing & Securitization LLC:
Series 2006-CB2, Class AF4, 3.32%, 12/25/36^(e)		14		12,794
Series 2006-MH1, Class B1, 6.25%, 10/25/36^(b)(e)		100		102,357
Series 2006-SL1, Class A2, 6.06%, 09/25/36^(b)(e)		84		11,153
Series 2007-CB6, Class A4, (LIBOR USD 1 Month + 0.34%), 2.13%, 07/25/37^(a)(b)		53		35,749
CWABS Asset-Backed Certificates Trust:
Series 2005-16, Class 1AF, 4.73%, 04/25/36^(d)		127		125,327
Series 2005-16, Class 2AF3, 4.47%, 05/25/36^(d)		23		23,621
Series 2006-11, Class 3AV2, (LIBOR USD 1 Month + 0.16%), 1.95%, 09/25/46^(a)		8		7,632
CWABS Revolving Home Equity Loan Trust, Series 2004-U, Class 2A, (LIBOR USD 1 Month + 0.27%), 2.01%, 03/15/34^(a)		22		21,364
CWABS, Inc. Asset-Backed Certificates Trust, Series 2004-5, Class A, (LIBOR USD 1 Month + 0.90%), 2.69%, 10/25/34^(a)		109		106,964
CWHEQ Home Equity Loan Trust, Series 2006-S5, Class A5, 6.16%, 06/25/35		11		12,418
CWHEQ Revolving Home Equity Loan Resuritization Trust^(a)(b):
Series 2006-RES, Class 4Q1B, (LIBOR USD 1 Month + 0.30%), 2.04%, 12/15/33		17		15,982
Series 2006-RES, Class 5B1B, (LIBOR USD 1 Month + 0.19%), 1.93%, 05/15/35^(c)		8		8,166
CWHEQ Revolving Home Equity Loan Trust^(a):
Series 2005-B, Class 2A, (LIBOR USD 1 Month + 0.18%), 1.92%, 05/15/35		14		13,925
Series 2006-C, Class 2A, (LIBOR USD 1 Month + 0.18%), 1.92%, 05/15/36		97		95,176
Series 2006-H, Class 1A, (LIBOR USD 1 Month + 0.15%), 1.89%, 11/15/36		60		51,335
Dorchester Park CLO DAC, Series 2015-1A, Class BR, (LIBOR USD 3 Month + 1.45%), 3.42%, 04/20/28^(a)(b)		250		247,745
Dryden 53 CLO Ltd., Series 2017-53A, Class A, (LIBOR USD 3 Month + 1.12%), 3.12%, 01/15/31^(a)(b)		800		796,630
Dryden XXV Senior Loan Fund, Series 2012-25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 2.89%, 10/15/27^(a)(b)		250		249,786
First Franklin Mortgage Loan Trust^(a):
Series 2004-FFH3, Class M3, (LIBOR USD 1 Month + 1.05%), 2.84%, 10/25/34		33		30,433
Series 2006-FF16, Class 2A3, (LIBOR USD 1 Month + 0.14%), 1.93%, 12/25/36		708		405,198
Series 2006-FF17, Class A5, (LIBOR USD 1 Month + 0.15%), 1.94%, 12/25/36		584		531,646


SCHEDULE OF INVESTMENTS			7

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Asset-Backed Securities (continued)
Series 2006-FFH1, Class M2, (LIBOR USD 1 Month + 0.40%), 2.19%, 01/25/36	USD	93	$	62,766
Flatiron CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.89%), 2.89%, 04/15/27^(a)(b)		216		215,960
Fremont Home Loan Trust, Series 2006-3, Class 1A1, (LIBOR USD 1 Month + 0.14%), 1.93%, 02/25/37^(a)		232		173,499
GE-WMC Asset-Backed Pass-Through Certificates^(a):
Series 2005-2, Class A2C, (LIBOR USD 1 Month + 0.25%), 2.04%, 12/25/35		17		16,642
Series 2005-2, Class M1, (LIBOR USD 1 Month + 0.44%), 2.23%, 12/25/35		172		145,872
GSAA Home Equity Trust, Series 2007-2, Class AF3, 5.92%, 03/25/37^(d)		28		8,851
GSAMP Trust^(a):
Series 2007-H1, Class A1B, (LIBOR USD 1 Month + 0.20%), 1.99%, 01/25/47		28		16,773
Series 2007-HS1, Class M6, (LIBOR USD 1 Month + 2.25%), 4.04%, 02/25/47		40		41,438
Halcyon Loan Advisors Funding Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.02%, 07/25/27^(a)(b)		376		375,108
Highbridge Loan Management Ltd., Series 6A-2015, Class AIR, (LIBOR USD 3 Month + 1.00%), 2.89%, 02/05/31^(a)(b)		250		248,363
Home Equity Asset Trust, Series 2007-1, Class 2A3, (LIBOR USD 1 Month + 0.15%), 1.94%, 05/25/37^(a)		90		75,139
Home Equity Mortgage Loan Asset-Backed Trust^(a):
Series 2004-A, Class M2, (LIBOR USD 1 Month + 2.03%), 3.82%, 07/25/34		25		24,922
Series 2007-A, Class 2A2, (LIBOR USD 1 Month + 0.19%), 1.98%, 04/25/37		68		49,133
Home Equity Mortgage Trust, Series 2006-2, Class 1A1, 5.87%, 07/25/36^(e)		67		19,262
Home Loan Mortgage Loan Trust, Series 2005-1, Class A3, (LIBOR USD 1 Month + 0.72%), 2.46%, 04/15/36^(a)		22		20,142
ICG US CLO Ltd., Series 2015-1A, Class A1R, (LIBOR USD 3 Month + 1.14%), 3.11%, 10/19/28^(a)(b)		250		249,109
Invitation Homes Trust, Series 2018-SFR3, Class A, (LIBOR USD 1 Month + 1.00%), 2.74%, 07/17/37^(a)(b)		123		123,032
Irwin Home Equity Loan Trust, Series 2006-3, Class 2A3, 6.53%, 09/25/37^(b)(e)		39		38,306
JPMorgan Mortgage Acquisition Trust, Series 2006-CW1, Class M1, (LIBOR USD 1 Month + 0.27%), 2.06%, 05/25/36^(a)		100		95,921
LCM 26 Ltd., Series 26A, Class A1, (LIBOR USD 3 Month + 1.07%), 3.04%, 01/20/31^(a)(b)		280		279,108
LCM XX LP, Series 20A, Class AR, (LIBOR USD 3 Month + 1.04%), 3.01%, 10/20/27^(a)(b)		250		250,318
LCM XXIV Ltd., Series 24A, Class A, (LIBOR USD 3 Month + 1.31%), 3.28%, 03/20/30^(a)(b)		250		249,939
Legacy Mortgage Asset Trust^(b):
Series 2019-GS2, Class A1, 3.75%, 01/25/59^(e)		106		107,161
Series 2019-SL1, Class A, 4.00%, 12/28/54^(d)		384		386,975


Security	Par (000)		Value

Asset-Backed Securities (continued)
Lehman ABS Manufactured Housing Contract Trust, Series 2001-B, Class M1, 6.63%, 04/15/40^(d)	USD	77	$	83,146
Litigation Fee Residual Funding LLC, Series 2015-1, Class A, 4.00%, 10/30/27^(c)		57		57,298
Long Beach Mortgage Loan Trust^(a):
Series 2006-2, Class 1A, (LIBOR USD 1 Month + 0.18%), 1.97%, 03/25/46		223		179,228
Series 2006-4, Class 2A3, (LIBOR USD 1 Month + 0.16%), 1.95%, 05/25/36		362		165,338
Series 2006-4, Class 2A4, (LIBOR USD 1 Month + 0.26%), 2.05%, 05/25/36		402		188,854
Series 2006-9, Class 2A2, (LIBOR USD 1 Month + 0.11%), 1.90%, 10/25/36		53		21,917
Series 2006-9, Class 2A3, (LIBOR USD 1 Month + 0.16%), 1.95%, 10/25/36		324		135,593
Series 2006-9, Class 2A4, (LIBOR USD 1 Month + 0.23%), 2.02%, 10/25/36		120		50,946
Series 2006-10, Class 2A3, (LIBOR USD 1 Month + 0.16%), 1.95%, 11/25/36		82		38,855
Series 2006-10, Class 2A4, (LIBOR USD 1 Month + 0.22%), 2.01%, 11/25/36		62		29,463
Madison Avenue Manufactured Housing Contract Trust, Series 2002-A, Class B2, (LIBOR USD 1 Month + 3.25%), 5.04%, 03/25/32^(a)		34		34,135
Madison Park Funding XI Ltd., Series 2013-11A, Class AR, (LIBOR USD 3 Month + 1.16%), 3.09%, 07/23/29^(a)(b)		250		249,912
Madison Park Funding XIII Ltd., Series 2014-13A, Class AR2, (LIBOR USD 3 Month + 0.95%), 2.92%, 04/19/30^(a)(b)		580		577,101
Madison Park Funding XVIII Ltd., Series 2015-18A, Class AIR, (LIBOR USD 3 Month + 1.19%), 3.16%, 10/21/30^(a)(b)		510		510,320
Madison Park Funding XXVI Ltd., Series 2017-26A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.13%, 07/29/30^(a)(b)		270		269,384
Marble Point CLO XI Ltd., Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.18%), 3.18%, 12/18/30^(a)(b)		250		248,474
Mariner CLO 5 Ltd., Series 2018-5A, Class A, (LIBOR USD 3 Month + 1.11%), 3.05%, 04/25/31^(a)(b)		250		249,099
Mariner CLO Ltd., Series 2017-4A, Class A, (LIBOR USD 3 Month + 1.21%), 3.15%, 10/26/29^(a)(b)		250		250,149
MASTR Specialized Loan Trust, Series 2006-3, Class A, (LIBOR USD 1 Month + 0.26%), 2.05%, 06/25/46^(a)(b)		17		15,880
Merrill Lynch Mortgage Investors Trust^(a):
Series 2006-OPT1, Class M1, (LIBOR USD 1 Month + 0.26%), 2.05%, 08/25/37		35		18,469
Series 2006-RM3, Class A2B, (LIBOR USD 1 Month + 0.09%), 1.88%, 06/25/37		27		7,971
Morgan Stanley ABS Capital I, Inc. Trust^(a):
Series 2005-HE1, Class A2MZ, (LIBOR USD 1 Month + 0.60%), 2.39%, 12/25/34		155		154,330
Series 2005-HE5, Class M4, (LIBOR USD 1 Month + 0.87%), 2.66%, 09/25/35		128		73,253
Series 2007-NC1,Class A1, (LIBOR USD 1 Month + 0.13%), 1.92%, 11/25/36		450		267,342
MP CLO III Ltd., Series 2013-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 3.22%, 10/20/30^(a)(b)		250		249,137


8		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Asset-Backed Securities (continued)
MP CLO VIII Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 0.91%), 2.85%, 10/28/27^(a)(b)	US	D 270	$	269,479
Navient Private Education Loan Trust, Series 2014-AA, Class A2B, (LIBOR USD 1 Month + 1.25%), 2.99%, 02/15/29^(a)(b)		262		263,167
Neuberger Berman Loan Advisers CLO Ltd., Series 2017-26A, Class A, (LIBOR USD 3 Month + 1.17%), 3.17%, 10/18/30^(a)(b)		250		249,848
Oakwood Mortgage Investors, lnc.^(d):
Series 2001-D, Class A2, 5.26%, 01/15/19		21		14,860
Series 2001-D, Class A4, 6.93%, 09/15/31		12		9,725
Series 2002-B, Class M1, 7.62%, 06/15/32		79		66,990
OCP CLO Ltd.^(a)(b):
Series 2016-12A, Class A1R, (LIBOR USD 3 Month + 1.12%), 3.12%, 10/18/28		216		216,329
Series 2017-13A, Class A1A, (LIBOR USD 3 Month + 1.26%), 3.26%, 07/15/30		300		300,007
Series 2017-14A, Class B, (LIBOR USD 3 Month + 1.95%), 3.85%, 11/20/30		250		240,733
Octagon Investment Partners XIX Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 3.10%, 04/15/26^(a)(b)		117		117,430
Octagon Investment Partners XVI Ltd., Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.02%), 3.02%, 07/17/30^(a)(b)		250		247,707
Octagon Investment Partners XVII Ltd., Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.00%), 2.94%, 01/25/31^(a)(b)		250		248,468
OFSI Fund VI Ltd., Series 2014-6A, Class A2R, (LIBOR USD 3 Month + 1.13%), 3.13%, 03/20/25^(a)(b)		184		184,312
OFSI Fund VII Ltd., Series 2014-7A, Class AR, (LIBOR USD 3 Month + 0.90%), 2.90%, 10/18/26^(a)(b)		105		104,609
OHA Loan Funding Ltd., Series 2013-2A, Class AR, (LIBOR USD 3 Month + 1.04%), 2.95%, 05/23/31^(a)(b)		225		224,062
Option One Mortgage Accep Corp. Asset- Backed Certificates, Series 2003-4, Class A2, (LIBOR USD 1 Month + 0.64%), 2.43%, 07/25/33^(a)		167		165,572
Option One Mortgage Loan Trust:
Series 2007-CP1, Class 2A3, (LIBOR USD 1 Month + 0.21%), 2.00%, 03/25/37^(a)		90		62,942
Series 2007-FXD1, Class 1A1, 5.87%, 01/25/37^(e)		94		90,113
Series 2007-FXD1, Class 2A1, 5.87%, 01/25/37^(e)		247		243,668
Series 2007-FXD2, Class 1A1, 5.82%, 03/25/37^(e)		413		416,099
Origen Manufactured Housing Contract Trust, Series 2007-B, Class A1, (LIBOR USD 1 Month + 1.20%), 2.94%, 10/15/37^(a)(b)(c)		71		70,674
Ownit Mortgage Loan Trust, Series 2006-2, Class A2C, 6.00%, 01/25/37^(e)		70		67,157
OZLM Funding IV Ltd., Series 2013-4A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.20%, 10/22/30^(a)(b)		390		387,747
OZLM XIV Ltd., Series 2015-14A, Class A2AR, (LIBOR USD 3 Month + 1.70%), 4.00%, 01/15/29^(a)(b)		250		249,032
Palmer Square CLO Ltd.^(a)(b):
Series 2014-1A, Class A1R2, (LIBOR USD 3 Month + 1.13%), 3.13%, 01/17/31		250		249,515


Security	Par (000)		Value

Asset-Backed Securities (continued)
Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.03%, 04/18/31	USD	250	$	247,313
Series 2018-2A, Class A1A, (LIBOR USD 3 Month + 1.10%), 3.10%, 07/16/31		420		418,752
Park Avenue Institutional Advisers CLO Ltd.^(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.22%), 3.13%, 11/14/29		280		280,093
Series 2017-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 3.61%, 11/14/29		300		297,972
Progress Residential Trust^(b):
Series 2015-SFR3, Class A, 3.07%, 11/12/32		197		197,140
Series 2017-SFR1, Class A, 2.77%, 08/17/34		100		99,753
Series 2018-SFR1, Class F, 4.78%, 03/17/35		100		101,812
Race Point IX CLO Ltd., Series 2015-9A, Class A1AR, (LIBOR USD 3 Month + 1.21%), 3.21%, 10/15/30^(a)(b)		500		498,328
Race Point X CLO Ltd., Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.10%), 3.04%, 07/25/31^(a)(b)		250		248,762
Regatta VI Funding Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.05%, 07/20/28^(a)(b)		330		329,918
Rockford Tower CLO Ltd.^(a)(b):
Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.37%), 3.37%, 04/15/29		250		250,089
Series 2017-1A, Class B, (LIBOR USD 3 Month + 1.80%), 3.80%, 04/15/29		250		250,106
Series 2017-2A, Class B, (LIBOR USD 3 Month + 1.75%), 3.75%, 10/15/29		250		249,270
Series 2017-2A, Class C, (LIBOR USD 3 Month + 2.30%), 4.30%, 10/15/29		250		245,174
Series 2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.16%, 10/20/30		250		249,643
Romark WM-R Ltd., Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.00%, 04/20/31^(a)(b)		250		247,064
RR 3 Ltd., Series 2018-3A, Class A1R2, (LIBOR USD 3 Month + 1.09%), 3.09%, 01/15/30^(a)(b)		1,250		1,240,062
Securitized Asset-Backed Receivables LLC Trust^(a):
Series 2006-WM4, Class A1, (LIBOR USD 1 Month + 0.19%),1.98%,11/25/36^(b)		97		56,723
Series 2006-WM4, Class A2A, (LIBOR USD 1 Month + 0.08%), 1.87%, 11/25/36		47		17,313
Series 2006-WM4, Class A2C, (LIBOR USD 1 Month + 0.16%), 1.95%, 11/25/36		140		52,681
SG Mortgage Securities Trust, Series 2006- OPT2, Class A3D, (LIBOR USD 1 Month + 0.21%), 2.00%, 10/25/36^(a)		100		82,427
Silver Creek CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.24%), 3.21%, 07/20/30^(a)(b)		250		250,601
SLM Private Credit Student Loan Trust, Series 2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 2.22%, 03/15/24^(a)		190		189,370
SMB Private Education Loan Trust, Series 2015-B, Class B, 3.50%, 12/17/40^(b)		100		100,461
Sound Point CLO XXIII Ltd., Series 2019-2A, Class A1, (LIBOR USD 3 Month + 1.40%), 3.40%, 04/15/32^(a)(b)		800		796,312


SCHEDULE OF INVESTMENTS			9

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Asset-Backed Securities (continued)
Soundview Home Loan Trust, Series 2004- WMC1, Class M2, (LIBOR USD 1 Month + 0.80%), 2.59%, 01/25/35^(a)	USD	2	$	1,627
Structured Asset Securities Corp. Mortgage Pass-Through Certificates, Series 2004-23XS, Class 2A1, (LIBOR USD 1 Month + 0.30%), 2.09%, 01/25/35^(a)		82		80,834
TCI-Flatiron CLO Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.20%), 3.10%, 11/18/30^(a)(b)		250		250,129
Towd Point Mortgage Trust^(b)(d):
Series 2019-SJ2, Class A2, 4.25%, 11/25/58		140		143,584
Series 2019-SJ2, Class M1, 4.50%, 11/25/58		340		352,126
Tricon American Homes Trust, Series 2018-SFR1, Class E, 4.56%, 05/17/37^(b)		100		103,971
Union Pacific Railroad Co. Pass-Through Trust, Series 2014-1, 3.23%, 05/14/26		94		97,880
Venture 35 CLO Ltd., Series 2018-35A, Class AS, (LIBOR USD 3 Month + 1.15%), 3.10%, 10/22/31^(a)(b)		100		99,659
Venture XVIII CLO Ltd., Series 2014-18A, Class AR, (LIBOR USD 3 Month + 1.22%), 3.22%, 10/15/29^(a)(b)		315		315,973
Voya CLO Ltd.^(a)(b):
Series 2017-4A, Class A1, (LIBOR USD 3 Month + 1.13%), 3.13%, 10/15/30		250		249,350
Series 2019-1A, Class A, (LIBOR USD 3 Month + 1.17%), 3.17%, 04/15/29		225		224,670
Wachovia Asset Securitization Issuance II LLC Trust, Series 2007-HE2A, Class A, (LIBOR USD 1 Month + 0.13%), 1.92%, 07/25/37^(a)(b)		77		73,177
WaMu Asset-Backed Certificates Trust^(a):
Series 2007-HE2, Class 2A3, (LIBOR USD 1 Month + 0.25%), 2.04%, 04/25/37		521		269,458
Series 2007-HE2, Class 2A4, (LIBOR USD 1 Month + 0.36%), 2.15%, 04/25/37		33		17,140
Washington Mutual Asset-Backed Certificates Trust^(a):
Series 2006-HE4, Class 2A2, (LIBOR USD 1 Month + 0.18%), 1.97%, 09/25/36		158		72,538
Series 2006-HE5, Class 1A, (LIBOR USD 1 Month + 0.16%), 1.95%, 10/25/36		168		137,052
Yale Mortgage Loan Trust, Series 2007-1, Class A, (LIBOR USD 1 Month + 0.40%), 2.19%, 06/25/37^(a)(b)		92		37,830
York CLO-2 Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.10%, 01/22/31^(a)(b)		250		249,448


Total Asset-Backed Securities — 7.3% (Cost: $46,089,893)				45,809,729


Corporate Bonds — 31.3%

Aerospace & Defense — 1.2%
BAE Systems Holdings, Inc.^(b):
3.80%, 10/07/24		48		50,757
3.85%, 12/15/25		265		281,304
4.75%, 10/07/44		8		9,107
Boeing Co. (The):
3.25%, 02/01/35		80		81,877
3.38%, 06/15/46		6		5,864
3.83%, 03/01/59		55		57,506
General Dynamics Corp., 3.75%, 05/15/28		143		157,457
L3Harris Technologies, Inc.:
3.85%, 06/15/23^(b)		670		705,406


Security	Par (000)		Value

Aerospace & Defense (continued)
3.83%, 04/27/25	US	D 34	$	36,286
3.85%, 12/15/26^(b)		435		466,813
4.40%, 06/15/28		485		540,730
4.40%, 06/15/28^(b)		165		183,960
4.85%, 04/27/35		8		9,445
5.05%, 04/27/45		15		18,507
Lockheed Martin Corp.:
3.60%, 03/01/35		520		568,636
4.50%, 05/15/36		10		11,861
4.07%, 12/15/42		7		7,994
Northrop Grumman Corp.:
3.50%, 03/15/21		10		10,193
2.55%, 10/15/22		60		60,910
2.93%, 01/15/25		380		391,856
3.25%, 01/15/28		588		613,677
Raytheon Co.:
7.20%, 08/15/27		45		59,089
7.00%, 11/01/28		360		476,861
4.20%, 12/15/44		62		72,239
Rockwell Collins, Inc., 3.20%, 03/15/24		23		23,938
Textron, Inc.:
3.65%, 03/15/27		130		135,185
3.90%, 09/17/29		235		251,109
TransDigm, Inc.:
6.25%, 03/15/26^(b)		451		488,257
6.38%, 06/15/26		106		112,425
7.50%, 03/15/27		62		67,816
5.50%, 11/15/27^(b)		276		279,099
United Technologies Corp.:
1.95%, 11/01/21		598		599,304
4.13%, 11/16/28		590		663,806
5.40%, 05/01/35		95		122,084
6.13%, 07/15/38		15		20,832
4.15%, 05/15/45		10		11,470

				7,653,660

Air Freight & Logistics — 0.1%
FedEx Corp.:
3.30%, 03/15/27		15		15,512
4.90%, 01/15/34		30		34,260
3.90%, 02/01/35		48		48,933
3.88%, 08/01/42		231		222,850
5.10%, 01/15/44		15		16,464
4.40%, 01/15/47		2		2,009
United Parcel Service, Inc.:
2.50%, 04/01/23		18		18,331
3.40%, 03/15/29		208		223,459
2.50%, 09/01/29		185		184,586

				766,404

Airlines — 0.6%
Air Canada Pass-Through Trust^(b):
Series 2015-2, Class B, 5.00%, 12/15/23		61		63,020
Series 2017-1, Class B, 3.70%, 01/15/26		1		900
Series 2017-1, Class AA, 3.30%, 01/15/30		91		92,849
American Airlines Group, Inc., 4.63%, 03/01/20^(b)		103		103,162
American Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.38%, 10/01/22		3		3,444
Series 2015-1, Class B, 3.70%, 05/01/23		33		33,114
Series 2015-2, Class B, 4.40%, 09/22/23		258		266,833
Series 2016-1, Class B, 5.25%, 01/15/24		189		199,843
Series 2017-1, Class B, 4.95%, 02/15/25		57		60,661
Series 2017-2, Class B, 3.70%, 10/15/25		68		68,606
Series 2016-3, Class B, 3.75%, 10/15/25		3		3,330
Series 2015-2, Class AA, 3.60%, 09/22/27		43		44,887


10		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Airlines (continued)
Series 2019-1, Class B, 3.85%, 02/15/28	USD	235	$	238,808
Series 2016-2, Class AA, 3.20%, 06/15/28		75		77,332
Series 2016-3, Class AA, 3.00%, 10/15/28		193		196,412
Series 2017-1, Class AA, 3.65%, 02/15/29		60		63,725
Series 2017-2, Class AA, 3.35%, 10/15/29		86		88,140
Series 2019-1, Class AA, 3.15%, 02/15/32		215		221,067
Continental Airlines Pass-Through Trust, Series 2012-1, Class B, 6.25%, 04/11/20		2		1,720
Delta Air Lines Pass-Through Trust, Series 2019-1, Class AA, 3.20%, 04/25/24		215		223,654
Delta Air Lines, Inc., 2.88%, 03/13/20		871		871,135
Gol Finance, Inc., 7.00%, 01/31/25^(b)		55		56,650
Transportes Aereos Portugueses SA, 5.63%, 12/02/24^(b)	EUR	100		111,469
Turkish Airlines Pass-Through Trust, Series 2015-1, Class A, 4.20%, 03/15/27^(b)	USD	31		28,985
United Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.75%, 04/11/22		14		14,611
Series 2014-2, Class B, 4.63%, 09/03/22		22		22,614
Series 2016-2, Class B, 3.65%, 10/07/25		12		12,605
Series 2016-1, Class B, 3.65%, 01/07/26		19		19,364
Series 2018-1, Class B, 4.60%, 03/01/26		74		76,017
Series 2015-1, Class AA, 3.45%, 12/01/27		38		39,947
Series 2019-2, Class B, 3.50%, 05/01/28		158		159,587
Series 2016-1, Class AA, 3.10%, 07/07/28		12		12,453
Series 2016-2, Class AA, 2.88%, 10/07/28		80		80,603
Series 2018-1, Class AA, 3.50%, 03/01/30		38		39,470
Series 2019-2, Class AA, 2.70%, 05/01/32		130		130,506
US Airways Pass-Through Trust:
Series 2012-2, Class B, 6.75%, 06/03/21		7		7,077
Series 2013-1, Class B, 5.38%, 11/15/21		25		26,154

				3,760,754

Auto Components — 0.0%
American Axle & Manufacturing, Inc., 6.25%, 04/01/25		74		77,053
Aptiv plc, 5.40%, 03/15/49		30		34,084
Lear Corp., 5.25%, 05/15/49		23		23,878

				135,015

Automobiles — 0.4%
BMW US Capital LLC, 2.80%, 04/11/26^(b)		84		85,309
Daimler Finance North America LLC^(b):
3.10%, 05/04/20		340		341,120
2.30%, 02/12/21		150		150,283
3.35%, 05/04/21		430		436,708
3.75%, 11/05/21		150		154,191
General Motors Co.:
6.60%, 04/01/36		156		184,127
6.25%, 10/02/43		114		128,083
Hyundai Capital America^(b):
2.55%, 04/03/20		786		786,246
3.95%, 02/01/22		305		313,098
Toyota Motor Corp., 2.76%, 07/02/29		115		118,004

				2,697,169

Banks — 6.8%
ABN AMRO Bank NV, 2.65%, 01/19/21^(b)		275		276,650
Australia & New Zealand Banking Group Ltd., 2.63%, 11/09/22		250		254,627
Banco Santander SA:
2.71%, 06/27/24		200		202,848
3.31%, 06/27/29		400		412,256
Bangkok Bank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.90%), 3.73%, 09/25/34^(a)		200		202,250


Security	Par (000)		Value

Banks (continued)
Bank of America Corp.:
2.63%, 10/19/20	USD	175	$	176,002
2.63%, 04/19/21		3		3,027
(LIBOR USD 3 Month + 0.66%), 2.37%, 07/21/21^(a)		485		485,996
(LIBOR USD 3 Month + 0.63%), 2.33%, 10/01/21^(a)		1,835		1,840,228
(LIBOR USD 3 Month + 0.63%), 3.50%, 05/17/22^(a)		285		290,726
3.30%, 01/11/23		42		43,423
(LIBOR USD 3 Month + 0.93%), 2.82%, 07/21/23^(a)		280		284,478
4.10%, 07/24/23		49		52,268
4.13%, 01/22/24		20		21,499
4.00%, 04/01/24		90		96,398
4.20%, 08/26/24		6		6,443
4.00%, 01/22/25		85		90,669
(LIBOR USD 3 Month + 0.97%), 3.46%, 03/15/25^(a)		200		208,857
Series L, 3.95%, 04/21/25		265		283,009
3.88%, 08/01/25		10		10,746
4.45%, 03/03/26		374		410,768
4.25%, 10/22/26		3		3,272
(LIBOR USD 3 Month + 1.06%), 3.56%, 04/23/27^(a)		259		273,777
(LIBOR USD 3 Month + 1.58%), 3.82%, 01/20/28^(a)		637		683,949
Series FF, (LIBOR USD 3 Month + 2.93%), 5.87%^(a)(f)		290		321,552
(LIBOR USD 3 Month + 1.51%), 3.71%, 04/24/28^(a)		1,007		1,076,740
(LIBOR USD 3 Month + 1.04%), 3.42%, 12/20/28^(a)		1,730		1,816,749
(LIBOR USD 3 Month + 1.07%), 3.97%, 03/05/29^(a)		232		252,827
(LIBOR USD 3 Month + 1.31%), 4.27%, 07/23/29^(a)		8		8,892
(LIBOR USD 3 Month + 1.21%), 3.97%, 02/07/30^(a)		46		50,502
Series L, 4.75%, 04/21/45		3		3,718
Bank of East Asia Ltd. (The), (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.26%), 5.87%^(a)(f)		250		259,062
Bank of Montreal:
3.10%, 07/13/20		7		7,049
Series D, 3.10%, 04/13/21		52		52,849
1.90%, 08/27/21		10		10,019
2.90%, 03/26/22		85		86,665
Series E, 3.30%, 02/05/24		16		16,678
2.50%, 06/28/24		59		59,731
Barclays plc, 4.38%, 01/12/26		220		237,666
BNP Paribas SA^(b):
3.50%, 03/01/23		400		413,950
(LIBOR USD 3 Month + 2.24%), 4.70%, 01/10/25^(a)		400		433,419
Citibank NA:
(LIBOR USD 3 Month + 0.53%), 3.16%, 02/19/22^(a)		365		369,624
3.65%, 01/23/24		1,515		1,603,838
Citigroup, Inc.:
2.75%, 04/25/22		2		2,032
4.05%, 07/30/22		1		1,045
(LIBOR USD 3 Month + 1.02%), 4.04%, 06/01/24^(a)		40		42,317


SCHEDULE OF INVESTMENTS			11

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Banks (continued)
(LIBOR USD 3 Month + 0.90%), 3.35%, 04/24/25^(a)		USD 36	$	37,469
4.40%, 06/10/25		252		273,947
5.50%, 09/13/25		4		4,574
4.45%, 09/29/27		216		237,985
(LIBOR USD 3 Month + 1.56%), 3.89%, 01/10/28^(a)		673		725,300
(LIBOR USD 3 Month + 1.39%), 3.67%, 07/24/28^(a)		792		844,385
(LIBOR USD 3 Month + 1.15%), 3.52%, 10/27/28^(a)		60		63,174
8.13%, 07/15/39		5		8,347
4.65%, 07/23/48		5		6,254
Citizens Bank NA, 2.25%, 03/02/20		544		544,042
Credit Agricole SA, (USD Swap Semi 5 Year + 6.19%), 8.12%^(a)(b)(f)		450		545,625
Credit Suisse Group Funding Guernsey Ltd., 3.80%, 09/15/22		270		281,110
Danske Bank A/S^(b):
5.00%, 01/12/22		400		420,157
3.88%, 09/12/23		210		218,081
5.38%, 01/12/24		300		328,390
Emirates NBD Bank PJSC, (USD Swap Semi 6 Year + 3.66%), 6.13%^(a)(f)		200		210,250
Fifth Third Bancorp, 3.65%, 01/25/24		100		105,552
HSBC Holdings plc^(a):
(LIBOR USD 3 Month + 1.21%), 3.80%, 03/11/25		464		487,110
(LIBOR USD 3 Month + 1.55%), 4.04%, 03/13/28		460		492,185
HSBC USA, Inc., 2.35%, 03/05/20		655		655,335
ING Groep NV:
4.10%, 10/02/23		480		510,385
3.55%, 04/09/24		200		209,331
4.63%, 01/06/26^(b)		200		222,482
JPMorgan Chase & Co.:
4.25%, 10/15/20		14		14,249
2.55%, 03/01/21		344		346,661
4.63%, 05/10/21		189		195,606
2.40%, 06/07/21		2		2,013
4.35%, 08/15/21		16		16,616
(LIBOR USD 3 Month + 0.61%), 3.51%, 06/18/22^(a)		271		276,870
2.97%, 01/15/23		204		207,862
3.20%, 01/25/23		24		24,769
(LIBOR USD 3 Month + 0.70%), 3.21%, 04/01/23^(a)		1,201		1,229,641
(LIBOR USD 3 Month + 0.94%), 2.78%, 04/25/23^(a)		73		74,153
3.38%, 05/01/23		10		10,392
2.70%, 05/18/23		231		235,203
3.88%, 02/01/24		40		42,695
(LIBOR USD 3 Month + 0.73%), 3.56%, 04/23/24^(a)		117		121,924
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24^(a)		392		413,187
3.88%, 09/10/24		85		90,999
(LIBOR USD 3 Month + 1.00%), 4.02%, 12/05/24^(a)		956		1,019,547
3.13%, 01/23/25		66		68,880
(LIBOR USD 3 Month + 1.16%), 3.22%, 03/01/25^(a)		336		348,358
3.90%, 07/15/25		6		6,481
(SOFR + 1.16%), 2.30%, 10/15/25^(a)		315		314,645


Security	Par (000)		Value

Banks (continued)
(LIBOR USD 3 Month + 1.25%), 3.96%, 01/29/27^(a)		USD 120	$	130,240
4.25%, 10/01/27		24		26,572
(LIBOR USD 3 Month + 1.34%), 3.78%, 02/01/28^(a)		913		984,565
(LIBOR USD 3 Month + 1.38%), 3.54%, 05/01/28^(a)		1,324		1,406,782
(LIBOR USD 3 Month + 1.26%), 4.20%, 07/23/29^(a)		242		270,142
(LIBOR USD 3 Month + 1.36%), 3.88%, 07/24/38^(a)		85		94,089
Kasikornbank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.70%), 3.34%, 10/02/31^(a)		200		200,625
KeyBank NA, 2.30%, 09/14/22		250		252,776
KeyCorp:
4.15%, 10/29/25		69		75,673
4.10%, 04/30/28		8		8,774
2.55%, 10/01/29		8		7,823
Lloyds Banking Group plc:
3.90%, 03/12/24		210		221,765
3.75%, 01/11/27		212		222,990
Mitsubishi UFJ Financial Group, Inc.:
3.54%, 07/26/21		35		35,824
3.00%, 02/22/22		85		86,635
3.22%, 03/07/22		20		20,493
2.67%, 07/25/22		20		20,296
3.46%, 03/02/23		935		967,700
3.76%, 07/26/23		65		68,476
3.41%, 03/07/24		246		256,540
Mizuho Financial Group, Inc.:
2.27%, 09/13/21		200		200,820
2.95%, 02/28/22		1,183		1,204,678
(LIBOR USD 3 Month + 1.10%), 2.55%, 09/13/25^(a)		360		360,104
3.66%, 02/28/27		200		212,475
(LIBOR USD 3 Month + 1.31%), 2.87%, 09/13/30^(a)		200		199,835
Nordea Bank Abp, 2.13%, 05/29/20^(b)		310		310,107
Santander UK Group Holdings plc, 2.88%, 08/05/21		370		373,448
Santander UK plc, 5.00%, 11/07/23^(b)		560		602,148
Shinhan Financial Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.50%), 3.34%, 02/05/30^(a)		200		203,042
Sumitomo Mitsui Financial Group, Inc.:
3.75%, 07/19/23		97		101,770
3.04%, 07/16/29		200		204,095
Svenska Handelsbanken AB, 2.40%, 10/01/20		250		250,814
Toronto-Dominion Bank (The):
2.50%, 12/14/20		257		258,477
3.25%, 03/11/24		79		82,725
2.65%, 06/12/24		122		124,976
Truist Bank:
2.80%, 05/17/22		185		188,519
3.20%, 04/01/24		3		3,122
US Bancorp:
2.95%, 07/15/22		172		176,016
2.40%, 07/30/24		309		313,301
3.10%, 04/27/26		17		17,700
Series X, 3.15%, 04/27/27		8		8,408
US Bank NA, (LIBOR USD 3 Month + 0.29%), 3.10%, 05/21/21^(a)		265		266,242
Washington Mutual Escrow Bonds^(c)(g)(h):
0.00%, 11/06/09		300		—


12		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Banks (continued)
0.00%, 09/19/17		USD 250	$	—
0.00%, 09/29/17		500		—
Wells Fargo & Co.:
2.60%, 07/22/20		77		77,294
2.55%, 12/07/20		397		399,418
2.50%, 03/04/21		608		612,369
4.60%, 04/01/21		136		140,414
2.10%, 07/26/21		13		13,019
3.50%, 03/08/22		270		278,833
2.63%, 07/22/22		649		658,699
3.07%, 01/24/23		65		66,341
3.75%, 01/24/24		785		830,001
3.00%, 02/19/25		24		24,766
3.55%, 09/29/25		198		209,665
(LIBOR USD 3 Month + 0.83%), 2.41%, 10/30/25^(a)		19		19,018
3.00%, 04/22/26		409		420,733
3.00%, 10/23/26		184		188,582
(LIBOR USD 3 Month + 1.17%), 3.20%, 06/17/27^(a)		48		49,808
(LIBOR USD 3 Month + 1.31%), 3.58%, 05/22/28^(a)		906		963,138
(LIBOR USD 3 Month + 1.17%), 2.88%, 10/30/30^(a)		75		75,521
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21^(a)		540		544,228

				42,826,760

Beverages — 0.5%
Anheuser-Busch Cos. LLC:
4.70%, 02/01/36		1,153		1,336,044
4.90%, 02/01/46		94		111,495
Anheuser-Busch InBev Worldwide, Inc.:
4.00%, 04/13/28		30		33,017
4.75%, 01/23/29		1,015		1,176,557
5.45%, 01/23/39		92		115,776
4.95%, 01/15/42		20		23,674
Coca-Cola Co. (The):
2.20%, 05/25/22		13		13,135
2.88%, 10/27/25		73		76,121
2.13%, 09/06/29		99		96,512
Keurig Dr Pepper, Inc.:
3.55%, 05/25/21		89		90,901
4.06%, 05/25/23		24		25,313
Molson Coors Brewing Co.:
5.00%, 05/01/42		50		54,673
4.20%, 07/15/46		60		59,889
PepsiCo, Inc.:
4.45%, 04/14/46		4		4,914
3.45%, 10/06/46		65		69,004
4.00%, 05/02/47		91		105,275
3.38%, 07/29/49		20		20,980

				3,413,280

Biotechnology — 0.4%
AbbVie, Inc.:
2.95%, 11/21/26^(b)		184		187,342
4.50%, 05/14/35		598		674,455
4.30%, 05/14/36		14		15,411
4.05%, 11/21/39^(b)		170		178,680
4.88%, 11/14/48		50		57,767
Amgen, Inc., 4.40%, 05/01/45		361		404,518
Gilead Sciences, Inc.:
2.55%, 09/01/20		135		135,575
3.70%, 04/01/24		15		15,908
3.50%, 02/01/25		348		369,393


Security	Par (000)		Value

Biotechnology (continued)
3.65%, 03/01/26		USD 30	$	32,310
4.60%, 09/01/35		101		120,607
5.65%, 12/01/41		20		26,285
4.80%, 04/01/44		71		85,327
4.50%, 02/01/45		34		39,525
4.75%, 03/01/46		49		58,924

				2,402,027

Building Products — 0.0%
Johnson Controls International plc:
4.63%, 07/02/44^(e)		80		87,940
5.13%, 09/14/45		5		5,842
4.50%, 02/15/47		2		2,163
Owens Corning:
3.95%, 08/15/29		75		78,071
4.30%, 07/15/47		5		4,746

				178,762

Capital Markets — 1.9%
ARI Investments LLC, (LIBOR USD 1 Month + 2.90%), 4.61%, 01/06/25^(a)(c)		807		806,975
Bank of New York Mellon Corp. (The):
Series E, (LIBOR USD 3 Month + 3.42%), 4.95%^(a)(f)		200		202,000
2.95%, 01/29/23		13		13,351
3.40%, 05/15/24		2		2,109
2.80%, 05/04/26		8		8,227
(LIBOR USD 3 Month + 1.07%), 3.44%, 02/07/28^(a)		293		310,904
Charles Schwab Corp. (The), 3.20%, 03/02/27		140		146,544
CME Group, Inc.:
3.00%, 09/15/22		2		2,059
3.75%, 06/15/28		44		48,616
Coastal Emerald Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 7.45%), 4.30%^(a)(f)		200		199,742
Credit Suisse Group AG, (LIBOR USD 3 Month + 1.20%), 3.00%, 12/14/23^(a)(b)		530		539,927
Deutsche Bank AG:
2.70%, 07/13/20		422		422,297
2.95%, 08/20/20		100		100,234
4.25%, 02/04/21		155		157,479
E*TRADE Financial Corp., 3.80%, 08/24/27		30		31,196
Goldman Sachs Group, Inc. (The):
2.75%, 09/15/20		65		65,306
5.25%, 07/27/21		37		38,829
2.35%, 11/15/21		460		461,828
5.75%, 01/24/22		60		64,411
(LIBOR USD 3 Month + 1.05%), 2.91%, 06/05/23^(a)		25		25,412
(LIBOR USD 3 Month + 0.99%), 2.90%, 07/24/23^(a)		22		22,397
3.63%, 02/20/24		90		94,477
4.00%, 03/03/24		80		85,251
3.50%, 01/23/25		5		5,249
3.75%, 05/22/25		32		33,970
(LIBOR USD 3 Month + 1.17%), 3.08%, 05/15/26^(a)		230		232,391
3.50%, 11/16/26		240		252,587
3.85%, 01/26/27		245		260,814
(LIBOR USD 3 Month + 1.51%), 3.69%, 06/05/28^(a)		515		547,952
(LIBOR USD 3 Month + 1.37%), 4.02%, 10/31/38^(a)		140		152,149
(LIBOR USD 3 Month + 1.43%), 4.41%, 04/23/39^(a)		69		78,629


SCHEDULE OF INVESTMENTS			13

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Capital Markets (continued)
4.80%, 07/08/44		USD 3	$	3,634
Huarong Finance Co. Ltd.:
3.25%, 11/13/24		200		200,413
3.88%, 11/13/29		200		201,624
Intercontinental Exchange, Inc.:
2.75%, 12/01/20		11		11,069
2.35%, 09/15/22		2		2,021
4.00%, 10/15/23		8		8,536
3.75%, 12/01/25		312		335,998
3.10%, 09/15/27		17		17,813
3.75%, 09/21/28		280		305,743
Joy Treasure Assets Holdings, Inc., 3.50%, 09/24/29		200		200,438
Moody’s Corp.:
2.75%, 12/15/21		9		9,139
4.88%, 02/15/24		59		64,885
Morgan Stanley:
2.75%, 05/19/22		273		278,042
3.13%, 01/23/23		144		148,044
3.75%, 02/25/23		164		171,743
(LIBOR USD 3 Month + 0.85%), 3.74%, 04/24/24^(a)		3		3,135
3.70%, 10/23/24		189		200,775
3.88%, 01/27/26		20		21,482
6.25%, 08/09/26		283		344,703
3.63%, 01/20/27		1,077		1,146,805
(LIBOR USD 3 Month + 1.34%), 3.59%, 07/22/28^(a)		120		127,598
(LIBOR USD 3 Month + 1.14%), 3.77%, 01/24/29^(a)		310		333,700
Northern Trust Corp., 3.15%, 05/03/29		19		19,962
Nuveen LLC, 4.00%, 11/01/28^(b)		20		22,273
State Street Corp.:
(LIBOR USD 3 Month + 0.77%), 3.78%, 12/03/24^(a)		30		31,749
3.30%, 12/16/24		26		27,429
2.65%, 05/19/26		150		152,688
UBS Group AG^(b):
2.95%, 09/24/20		205		206,434
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23^(a)		510		518,178
(USD Swap Semi 5 Year + 4.34%), 7.00%^(a)^(f)		490		535,325
(LIBOR USD 3 Month + 1.47%), 3.13%, 08/13/30^(a)		200		203,454
UBS Group Funding Switzerland AG, 4.13%, 09/24/25^(b)		470		511,382

				11,779,526

Chemicals — 0.4%
CNAC HK Finbridge Co. Ltd., 4.63%, 03/14/23		200		210,125
Dow Chemical Co. (The):
9.00%, 04/01/21		135		146,740
3.00%, 11/15/22		85		86,921
4.55%, 11/30/25		89		98,347
3.63%, 05/15/26		272		286,248
5.25%, 11/15/41		21		24,481
4.38%, 11/15/42		290		309,768
DuPont de Nemours, Inc.:
4.49%, 11/15/25		604		665,239
5.32%, 11/15/38		5		5,968
5.42%, 11/15/48		135		166,574
LYB International Finance BV, 4.00%, 07/15/23		10		10,578
LYB International Finance III LLC, 4.20%, 10/15/49		125		130,468


Security	Par (000)		Value

Chemicals (continued)
Methanex Corp., 5.25%, 12/15/29		USD 70	$	72,336
Sherwin-Williams Co. (The):
4.00%, 12/15/42		20		20,633
4.50%, 06/01/47		70		79,568
3.80%, 08/15/49		20		20,390

				2,334,384

Commercial Services & Supplies — 0.4%
Conservation Fund A Nonprofit Corp. (The), 3.47%, 12/15/29		86		85,742
KAR Auction Services, Inc., 5.13%, 06/01/25^(b)		106		110,240
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25^(b)		53		54,590
RELX Capital, Inc.:
3.50%, 03/16/23		355		368,630
4.00%, 03/18/29		261		283,491
Republic Services, Inc.:
3.55%, 06/01/22		40		41,326
4.75%, 05/15/23		305		328,462
2.90%, 07/01/26		131		134,217
3.38%, 11/15/27		40		42,310
3.95%, 05/15/28		286		315,171
Waste Management, Inc.:
3.13%, 03/01/25		40		41,800
3.45%, 06/15/29		5		5,355
3.90%, 03/01/35		58		63,939
4.00%, 07/15/39		306		342,873
Waste Pro USA, Inc., 5.50%, 02/15/26^(b)		55		57,337

				2,275,483

Communications Equipment — 0.1%
Cisco Systems, Inc., 2.95%, 02/28/26		44		45,897
Motorola Solutions, Inc.:
4.60%, 02/23/28		5		5,423
4.60%, 05/23/29		416		454,123
5.50%, 09/01/44		34		37,925

				543,368

Construction Materials — 0.0%
Cemex SAB de CV, 3.72%, 03/15/20⁽ⁱ⁾		24		24,037


Consumer Finance — 0.9%
American Express Co.:
2.50%, 08/01/22		100		101,195
3.70%, 08/03/23		202		212,382
3.40%, 02/22/24		113		118,210
2.50%, 07/30/24		151		152,767
4.20%, 11/06/25		110		121,278
3.13%, 05/20/26		405		421,251
American Express Credit Corp.:
Series F, 2.60%, 09/14/20		2		2,008
2.25%, 05/05/21		175		175,843
2.70%, 03/03/22		9		9,151
American Honda Finance Corp., 2.15%, 09/10/24		185		185,146
Capital One Financial Corp.:
3.45%, 04/30/21		2		2,036
3.50%, 06/15/23		39		40,531
3.90%, 01/29/24		554		587,621
3.75%, 04/24/24		10		10,532
3.30%, 10/30/24		87		90,610
4.25%, 04/30/25		2		2,178
3.80%, 01/31/28		36		38,715
Discover Financial Services, 4.10%, 02/09/27		44		47,415
Ford Motor Credit Co. LLC:
3.20%, 01/15/21		200		201,119
5.75%, 02/01/21		200		206,457


14		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Consumer Finance (continued)
4.13%, 08/04/25		USD 240	$	243,376
5.11%, 05/03/29		750		772,948
General Motors Financial Co., Inc.:
4.20%, 11/06/21		66		68,428
3.55%, 07/08/22		16		16,471
3.70%, 05/09/23		4		4,124
5.10%, 01/17/24		30		32,569
3.50%, 11/07/24		2		2,061
4.00%, 01/15/25		370		388,954
4.35%, 04/09/25		67		71,490
5.25%, 03/01/26		22		24,398
4.35%, 01/17/27		18		18,923
Hyundai Capital Services, Inc., 3.00%, 08/29/22^(b)		250		252,969
Navient Corp.:
5.88%, 03/25/21		62		64,046
6.63%, 07/26/21		74		78,255
6.50%, 06/15/22		100		108,375
7.25%, 09/25/23		58		65,542
5.88%, 10/25/24		55		58,850
6.75%, 06/25/25		57		62,928
6.75%, 06/15/26		55		60,450
Synchrony Financial:
2.70%, 02/03/20		48		48,016
4.38%, 03/19/24		140		149,381
4.25%, 08/15/24		11		11,741
4.50%, 07/23/25		6		6,474
Toyota Motor Credit Corp., 3.05%, 01/11/28		103		108,629

				5,445,843

Containers & Packaging — 0.1%
International Paper Co.:
6.00%, 11/15/41		116		144,802
4.80%, 06/15/44		64		70,338
Owens-Brockway Glass Container, Inc.^(b):
5.00%, 01/15/22		55		57,090
5.88%, 08/15/23		78		83,265

				355,495

Distributors — 0.0%^(b)
American Builders & Contractors Supply Co., Inc.:
5.88%, 05/15/26		67		71,187
4.00%, 01/15/28		74		75,110
Performance Food Group, Inc., 5.50%, 10/15/27		118		126,113

				272,410

Diversified Consumer Services — 0.2%
American University (The), 3.67%, 04/01/49		265		284,228
Claremont Mckenna College, 3.38%, 01/01/50		184		182,749
George Washington University (The), Series 2018, 4.13%, 09/15/48		81		93,506
President & Fellows of Harvard College, 5.63%, 10/01/38		229		310,354
University of Southern California, 3.03%, 10/01/39		50		50,267
Wesleyan University, 4.78%, 07/01/2116		45		50,484

				971,588

Diversified Financial Services — 0.3%
AXA Equitable Holdings, Inc.:
3.90%, 04/20/23		30		31,439
5.00%, 04/20/48		35		37,671
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35		400		427,894


Security	Par (000)		Value

Diversified Financial Services (continued)
MDGH - GMTN BV:
2.50%, 11/07/24^(b)		USD 200	$	200,500
3.70%, 11/07/49		200		208,000
ORIX Corp., 2.90%, 07/18/22		155		158,024
Shell International Finance BV:
1.88%, 05/10/21		70		70,082
3.25%, 05/11/25		125		132,497
4.13%, 05/11/35		283		331,140
6.38%, 12/15/38		49		71,520
3.63%, 08/21/42		64		68,467
4.55%, 08/12/43		27		32,927
4.38%, 05/11/45		80		95,505
4.00%, 05/10/46		7		7,977

				1,873,643

Diversified Telecommunication Services — 1.4%
Altice France SA, 7.38%, 05/01/26^(b)		516		553,998
AT&T, Inc.:
0.00%, 11/27/22^(b)(j)		1,000		935,039
3.60%, 07/15/25		50		52,928
3.80%, 02/15/27		69		73,556
4.25%, 03/01/27		113		124,117
4.10%, 02/15/28		48		52,231
4.35%, 03/01/29		170		189,127
4.30%, 02/15/30		71		78,895
4.50%, 05/15/35		1,007		1,122,128
6.00%, 08/15/40		204		261,292
5.35%, 09/01/40		4		4,828
5.15%, 03/15/42		150		175,274
4.65%, 06/01/44		24		26,235
4.80%, 06/15/44		97		110,676
4.85%, 07/15/45		146		166,755
4.75%, 05/15/46		2		2,263
5.15%, 11/15/46		47		56,275
5.45%, 03/01/47		2		2,485
CCO Holdings LLC^(b):
5.75%, 02/15/26		226		238,435
5.50%, 05/01/26		134		141,203
5.13%, 05/01/27		288		303,840
5.88%, 05/01/27		71		75,082
5.00%, 02/01/28		223		233,998
5.38%, 06/01/29		138		147,660
4.75%, 03/01/30		159		161,867
Deutsche Telekom International Finance BV, 3.60%, 01/19/27^(b)		225		236,959
Frontier Communications Corp., 8.00%, 04/01/27^(b)		182		190,190
Verizon Communications, Inc.:
4.13%, 03/16/27		1,359		1,508,815
4.40%, 11/01/34		17		19,707
4.27%, 01/15/36		1,127		1,276,387
5.25%, 03/16/37		11		13,815
4.81%, 03/15/39		27		32,594

				8,568,654

Electric Utilities — 2.2%
Adani Transmission Ltd., 4.25%, 05/21/36		200		202,000
AEP Texas, Inc.:
3.95%, 06/01/28		424		461,078
Series H, 3.45%, 01/15/50		14		14,013
AEP Transmission Co. LLC:
3.75%, 12/01/47		40		43,057
4.25%, 09/15/48		76		87,312
3.80%, 06/15/49		155		165,874
3.15%, 09/15/49		115		111,272


SCHEDULE OF INVESTMENTS			15

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Electric Utilities (continued)
Alabama Power Co.:
Series 13-A, 3.55%, 12/01/23		USD 35	$	36,937
4.15%, 08/15/44		130		144,952
3.75%, 03/01/45		150		159,020
Series A, 4.30%, 07/15/48		74		85,767
3.45%, 10/01/49		110		112,861
Baltimore Gas & Electric Co.:
2.80%, 08/15/22		327		332,240
3.50%, 08/15/46		86		87,587
3.75%, 08/15/47		85		90,750
4.25%, 09/15/48		105		120,121
3.20%, 09/15/49		125		122,516
CenterPoint Energy Houston Electric LLC, 3.95%, 03/01/48		85		95,490
China Huaneng Group Hong Kong Treasury Management Holding Ltd., 3.00%, 12/10/29		200		200,967
Dayton Power & Light Co. (The), 3.95%, 06/15/49^(b)		178		182,439
DTE Electric Co., Series A, 4.05%, 05/15/48		265		307,676
Duke Energy Carolinas LLC:
3.35%, 05/15/22		2		2,066
3.05%, 03/15/23		45		46,384
3.95%, 11/15/28		72		79,982
2.45%, 08/15/29		230		228,455
3.70%, 12/01/47		115		123,763
3.95%, 03/15/48		52		58,387
3.20%, 08/15/49		145		144,519
Duke Energy Florida LLC:
3.80%, 07/15/28		100		109,549
2.50%, 12/01/29		415		413,900
6.40%, 06/15/38		140		202,021
3.40%, 10/01/46		90		91,708
Duke Energy Ohio, Inc., 3.65%, 02/01/29		425		461,908
Duke Energy Progress LLC:
3.00%, 09/15/21		75		76,377
3.25%, 08/15/25		162		170,185
3.70%, 09/01/28		400		436,470
3.45%, 03/15/29		115		123,274
4.10%, 03/15/43		105		117,649
4.20%, 08/15/45		92		104,793
Edison International:
2.40%, 09/15/22		42		41,899
3.55%, 11/15/24		48		49,169
Entergy Arkansas LLC, 4.20%, 04/01/49		4		4,656
Entergy Corp., 2.95%, 09/01/26		31		31,501
Entergy Louisiana LLC:
5.40%, 11/01/24		65		74,448
4.20%, 09/01/48		185		214,144
4.20%, 04/01/50		45		52,218
Eversource Energy:
2.80%, 05/01/23		100		101,504
Series N, 3.80%, 12/01/23		17		17,906
Exelon Corp.:
4.95%, 06/15/35		18		20,840
4.45%, 04/15/46		65		73,078
FirstEnergy Transmission LLC^(b):
4.35%, 01/15/25		555		596,428
4.55%, 04/01/49		180		206,357
Florida Power & Light Co.:
(LIBOR USD 3 Month + 0.40%), 2.31%, 05/06/22^(a)		1,095		1,095,033
3.25%, 06/01/24		2		2,095
4.05%, 06/01/42		14		15,923
3.70%, 12/01/47		32		34,947
3.95%, 03/01/48		250		285,310


Security	Par (000)		Value

Electric Utilities (continued)
3.15%, 10/01/49		USD 165	$	166,901
ITC Holdings Corp., 2.70%, 11/15/22		10		10,125
MidAmerican Energy Co.:
3.10%, 05/01/27		10		10,428
3.65%, 04/15/29		80		87,485
4.25%, 07/15/49		131		157,269
3.15%, 04/15/50		120		118,538
Mid-Atlantic Interstate Transmission LLC, 4.10%, 05/15/28^(b)		40		43,779
Mong Duong Finance Holdings BV, 5.13%, 05/07/29		250		255,625
Northern States Power Co.:
2.15%, 08/15/22		370		372,570
3.40%, 08/15/42		205		214,643
4.00%, 08/15/45		60		68,118
3.60%, 09/15/47		20		21,415
2.90%, 03/01/50		88		84,072
NSTAR Electric Co.:
3.20%, 05/15/27		76		79,706
3.25%, 05/15/29		35		36,960
Ohio Power Co.:
Series G, 6.60%, 02/15/33		140		189,943
4.00%, 06/01/49		99		111,199
Oncor Electric Delivery Co. LLC:
3.70%, 11/15/28		235		257,249
4.55%, 12/01/41		63		75,487
3.80%, 09/30/47		101		111,494
3.80%, 06/01/49		11		11,963
3.10%, 09/15/49		95		92,857
Public Service Electric & Gas Co.:
2.38%, 05/15/23		35		35,471
3.00%, 05/15/25		16		16,622
3.00%, 05/15/27		26		26,903
3.65%, 09/01/28		210		229,066
3.20%, 05/15/29		84		88,626
Southern California Edison Co., 3.88%, 06/01/21		36		36,782
Southwestern Public Service Co.:
Series 6, 4.40%, 11/15/48		9		10,647
3.75%, 06/15/49		2		2,152
Stoneway Capital Corp., 10.00%, 03/01/27^(b)		133		83,895
Tampa Electric Co.:
4.30%, 06/15/48		30		34,969
4.45%, 06/15/49		175		207,512
Trans-Allegheny Interstate Line Co., 3.85%, 06/01/25^(b)		420		445,718
Virginia Electric & Power Co.:
Series C, 2.75%, 03/15/23		210		213,866
Series A, 3.50%, 03/15/27		275		294,193
Series B, 6.00%, 01/15/36		7		9,306
4.00%, 01/15/43		170		187,977
Series B, 4.20%, 05/15/45		43		49,177
Series C, 4.00%, 11/15/46		57		62,911
3.30%, 12/01/49		4		4,039
Vistra Operations Co. LLC, 4.30%, 07/15/29^(b)		381		388,692

				14,079,125

Electronic Equipment, Instruments & Components — 0.0%
Amphenol Corp., 3.20%, 04/01/24		20		20,753
Corning, Inc.:
3.70%, 11/15/23		35		36,482
4.38%, 11/15/57		75		76,964
Tyco Electronics Group SA:
3.45%, 08/01/24		30		31,439


16		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Electronic Equipment, Instruments & Components (continued)
3.13%, 08/15/27		USD 65	$	66,954

				232,592

Energy Equipment & Services — 0.0%
Hilong Holding Ltd., 8.25%, 09/26/22		200		201,625
Odebrecht Drilling Norbe VIII/IX Ltd., 6.35%, 12/01/21^(b)		25		24,932
Odebrecht Offshore Drilling Finance Ltd., 6.72%, 12/01/22^(b)		24		23,513

				250,070

Entertainment — 0.1%
NBCUniversal Media LLC, 5.95%, 04/01/41		130		178,882
Walt Disney Co. (The):
6.40%, 12/15/35		142		201,830
6.65%, 11/15/37		57		84,732
4.75%, 09/15/44		75		93,694

				559,138

Equity Real Estate Investment Trusts (REITs) — 0.4%
American Tower Corp.:
2.25%, 01/15/22		60		60,195
3.00%, 06/15/23		161		164,561
2.95%, 01/15/25		15		15,329
4.00%, 06/01/25		80		85,616
2.75%, 01/15/27		66		65,928
3.13%, 01/15/27		16		16,378
3.95%, 03/15/29		80		86,049
Boston Properties LP, 3.85%, 02/01/23		67		70,208
CC Holdings GS V LLC, 3.85%, 04/15/23		80		83,859
Crown Castle International Corp.:
3.40%, 02/15/21		3		3,041
4.88%, 04/15/22		16		16,949
5.25%, 01/15/23		82		89,078
3.20%, 09/01/24		395		408,612
4.45%, 02/15/26		32		35,059
3.70%, 06/15/26		251		265,344
3.65%, 09/01/27		48		50,799
3.80%, 02/15/28		6		6,396
4.30%, 02/15/29		10		11,084
3.10%, 11/15/29		270		273,461
5.20%, 02/15/49		115		139,922
Equinix, Inc., 2.63%, 11/18/24		178		178,331
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24		122		133,436
4.50%, 09/01/26		55		57,888
5.75%, 02/01/27^(b)		90		100,350
Prologis Euro Finance LLC, 1.50%, 09/10/49		EUR 100		101,116
Realty Income Corp.:
4.65%, 08/01/23		USD 6		6,494
3.88%, 04/15/25		6		6,471
4.13%, 10/15/26		112		122,908
3.00%, 01/15/27		35		36,020
Ryman Hospitality Properties, Inc., 4.75%, 10/15/27^(b)		76		78,470

				2,769,352

Food & Staples Retailing — 0.3%
Albertsons Cos., Inc.:
5.75%, 03/15/25		136		140,760
7.50%, 03/15/26^(b)		71		79,697
5.88%, 02/15/28^(b)		85		90,313
Alimentation Couche-Tard, Inc., 3.55%, 07/26/27^(b)		425		437,167
Walmart, Inc.:
3.55%, 06/26/25		227		243,854


Security	Par (000)		Value

Food & Staples Retailing (continued)
3.70%, 06/26/28		USD 265	$	291,975
3.25%, 07/08/29		125		134,165
3.95%, 06/28/38		123		142,488
3.63%, 12/15/47		23		25,600
2.95%, 09/24/49		16		15,942

				1,601,961

Food Products — 0.2%
Campbell Soup Co., 8.88%, 05/01/21		100		108,058
Mondelez International, Inc., 4.00%, 02/01/24		22		23,429
Pilgrim’s Pride Corp., 5.88%, 09/30/27^(b)		97		104,881
Post Holdings, Inc.^(b):
5.00%, 08/15/26		162		171,112
5.75%, 03/01/27		147		157,657
5.63%, 01/15/28		108		116,370
5.50%, 12/15/29		85		90,636
Simmons Foods, Inc., 5.75%, 11/01/24^(b)		57		57,285
Tyson Foods, Inc.:
3.95%, 08/15/24		12		12,868
4.00%, 03/01/26		63		68,197
3.55%, 06/02/27		159		169,063
4.35%, 03/01/29		4		4,534
4.55%, 06/02/47		34		38,928
5.10%, 09/28/48		17		21,406

				1,144,424

Gas Utilities — 0.0%
Atmos Energy Corp., 3.38%, 09/15/49		95		96,475
Dominion Energy Gas Holdings LLC, 4.80%, 11/01/43		45		51,459
Piedmont Natural Gas Co., Inc., 3.64%, 11/01/46		25		24,874

				172,808

Health Care Equipment & Supplies — 0.2%
Abbott Laboratories, 3.75%, 11/30/26		725		792,172
Baxter International, Inc., 1.70%, 08/15/21		20		19,971
Becton Dickinson and Co., 3.30%, 03/01/23		170		173,640
DH Europe Finance II SARL, 1.80%, 09/18/49		EUR 100		108,204
Edwards Lifesciences Corp., 4.30%, 06/15/28		USD 11		12,232
Medtronic Global Holdings SCA, 1.75%, 07/02/49		EUR 100		109,602
Medtronic, Inc.:
3.15%, 03/15/22		USD 20		20,570
3.50%, 03/15/25		47		50,384

				1,286,775

Health Care Providers & Services — 1.2%
Aetna, Inc.:
4.50%, 05/15/42		119		128,368
4.13%, 11/15/42		4		4,098
4.75%, 03/15/44		50		55,854
Anthem, Inc.:
3.50%, 08/15/24		31		32,503
2.38%, 01/15/25		32		31,962
3.65%, 12/01/27		26		27,534
4.10%, 03/01/28		30		32,598
2.88%, 09/15/29		11		10,958
Baylor Scott & White Holdings, 4.19%, 11/15/45		35		39,144
CHRISTUS Health, Series C, 4.34%, 07/01/28		113		124,842
Cigna Corp.:
3.30%, 02/25/21^(b)		94		95,202
3.90%, 02/15/22^(b)		65		67,321
3.05%, 11/30/22^(b)		9		9,200
3.75%, 07/15/23		110		115,368
3.50%, 06/15/24^(b)		102		106,540
3.25%, 04/15/25^(b)		166		172,161


SCHEDULE OF INVESTMENTS			17

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Health Care Providers & Services (continued)
3.40%, 03/01/27^(b)	USD	5	$	5,197
3.05%, 10/15/27^(b)		58		58,826
4.38%, 10/15/28		250		276,972
4.80%, 08/15/38		3		3,499
CommonSpirit Health:
3.35%, 10/01/29		101		101,620
4.35%, 11/01/42		30		30,814
4.19%, 10/01/49		105		104,981
CVS Health Corp.:
3.70%, 03/09/23		52		54,202
4.10%, 03/25/25		347		372,561
3.88%, 07/20/25		12		12,781
4.30%, 03/25/28		8		8,740
4.78%, 03/25/38		321		364,935
5.13%, 07/20/45		516		612,139
Encompass Health Corp.:
4.50%, 02/01/28		53		54,921
4.75%, 02/01/30		55		57,063
Express Scripts Holding Co., 2.60%, 11/30/20		50		50,281
HCA, Inc.:
4.75%, 05/01/23		264		282,827
5.00%, 03/15/24		85		92,919
5.25%, 04/15/25		552		617,638
4.50%, 02/15/27		92		99,221
4.13%, 06/15/29		309		327,874
Montefiore Obligated Group, Series 18-C, 5.25%, 11/01/48		96		108,155
Ochsner Clinic Foundation, 5.90%, 05/15/45		21		27,793
PeaceHealth Obligated Group, Series 2018, 4.79%, 11/15/48		16		19,700
RWJ Barnabas Health, Inc., 3.48%, 07/01/49		56		55,346
Select Medical Corp., 6.25%, 08/15/26^(b)		62		67,116
Spectrum Health System Obligated Group,
Series 19A, 3.49%, 07/15/49		99		99,137
SSM Health Care Corp., Series 2018, 3.69%, 06/01/23		309		322,405
Sutter Health, Series 2018, 3.70%, 08/15/28		104		111,458
Tenet Healthcare Corp.:
5.13%, 05/01/25		152		156,560
6.25%, 02/01/27^(b)		168		180,810
Toledo Hospital (The), 5.75%, 11/15/38		36		41,154
UnitedHealth Group, Inc.:
2.38%, 08/15/24		48		48,637
3.75%, 07/15/25		805		869,610
3.70%, 12/15/25		30		32,471
3.10%, 03/15/26		122		127,794
3.85%, 06/15/28		155		171,042
2.88%, 08/15/29		25		25,732
5.80%, 03/15/36		66		87,647
3.50%, 08/15/39		180		189,034
4.63%, 11/15/41		92		109,744
4.75%, 07/15/45		37		45,563
3.75%, 10/15/47		92		99,027

				7,639,599

Hotels, Restaurants & Leisure — 0.4%
1011778 BC ULC, 5.00%, 10/15/25^(b)		304		313,880
Boyd Gaming Corp.:
6.38%, 04/01/26		74		79,619
6.00%, 08/15/26		68		72,930
Caesars Resort Collection LLC, 5.25%, 10/15/25^(b)		182		188,370
Cedar Fair LP:
5.38%, 04/15/27		55		59,184
5.25%,07/15/29^(b)		58		62,495


Security	Par (000)		Value

Hotels, Restaurants & Leisure (continued)
Churchill Downs, Inc.^(b):
5.50%, 04/01/27	USD	67	$	71,020
4.75%, 01/15/28		55		56,787
Eldorado Resorts, Inc., 6.00%, 09/15/26		60		66,075
McDonald’s Corp.:
3.70%, 01/30/26		214		230,915
2.63%, 09/01/29		1		1,002
4.70%, 12/09/35		27		32,023
6.30%, 03/01/38		34		46,057
3.70%, 02/15/42		37		37,580
3.63%, 05/01/43		132		131,529
4.88%, 12/09/45		48		57,869
4.45%, 03/01/47		83		94,377
4.45%, 09/01/48		60		68,769
3.63%, 09/01/49		359		365,182
Scientific Games International, Inc., 5.00%, 10/15/25^(b)		118		123,458
Six Flags Entertainment Corp., 5.50%, 04/15/27^(b)		55		58,644
Station Casinos LLC, 5.00%, 10/01/25^(b)		60		61,050
Viking Cruises Ltd., 5.88%, 09/15/27^(b)		92		98,325
Wynn Las Vegas LLC^(b):
5.50%, 03/01/25		203		217,210
5.25%, 05/15/27		101		107,313
Wynn Resorts Finance LLC, 5.13%, 10/01/29^(b)		83		89,018

				2,790,681

Household Durables — 0.0%
Brookfield Residential Properties, Inc., 6.25%, 09/15/27^(b)		65		68,575
Century Communities, Inc., 6.75%, 06/01/27^(b)(e)		58		62,188
Mattamy Group Corp, 6.50%, 10/01/25^(b)		55		58,712
Tempur Sealy International, Inc., 5.50%, 06/15/26		67		70,601

				260,076

Household Products — 0.0%
Clorox Co. (The), 3.10%, 10/01/27		31		31,963
Spectrum Brands, Inc., 5.75%, 07/15/25		96		100,202

				132,165

Independent Power and Renewable Electricity Producers — 0.0%
Calpine Corp., 5.50%, 02/01/24		56		56,840
NRG Energy, Inc., 3.75%, 06/15/24^(b)		19		19,647

				76,487

Industrial Conglomerates — 0.2%
3M Co.:
3.25%, 02/14/24		15		15,700
2.00%, 02/14/25		57		56,694
3.00%, 08/07/25		125		131,438
3.38%, 03/01/29		30		32,060
2.38%, 08/26/29		195		192,408
General Electric Co.:
5.88%, 01/14/38		252		306,321
6.88%, 01/10/39		50		66,827
4.13%, 10/09/42		33		34,044
Honeywell International, Inc., 2.70%, 08/15/29		155		158,648

				994,140

Insurance — 0.4%
Ambac Assurance Corp, 5.10%, 06/07/20^(b)		15		21,971
Ambac LSNI LLC, (LIBOR USD 3 Month + 5.00%), 6.94%, 02/12/23^(a)(b)		91		92,255
Aon Corp.:
4.50%, 12/15/28		469		528,396
3.75%, 05/02/29		260		278,220


18		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Insurance (continued)
Aon plc:
3.88%, 12/15/25	USD	16	$	17,222
4.75%, 05/15/45		57		67,226
Hartford Financial Services Group, Inc. (The), 4.30%, 04/15/43		35		38,966
Marsh & McLennan Cos., Inc.:
3.50%, 12/29/20		108		109,586
4.05%, 10/15/23		105		111,711
3.50%, 06/03/24		316		331,973
3.50%, 03/10/25		135		142,519
4.38%, 03/15/29		217		247,410
4.20%, 03/01/48		57		64,880
Principal Financial Group, Inc., 3.70%, 05/15/29		105		114,512
Travelers Cos., Inc. (The):
6.75%, 06/20/36		5		7,240
6.25%, 06/15/37		2		2,793
Trinity Acquisition plc, 4.40%, 03/15/26		80		86,991
Willis North America, Inc.:
3.60%, 05/15/24		36		37,615
3.88%, 09/15/49		15		14,965

				2,316,451

Internet & Direct Marketing Retail — 0.2%
Alibaba Group Holding Ltd., 3.60%, 11/28/24		220		231,176
Amazon.com, Inc., 3.88%, 08/22/37		245		278,463
Expedia Group, Inc.:
3.80%, 02/15/28		103		105,357
3.25%, 02/15/30^(b)		345		332,049

				947,045

IT Services — 0.9%
Fidelity National Information Services, Inc.:
3.00%, 08/15/26		521		539,131
3.75%, 05/21/29		34		37,272
Fiserv, Inc.:
3.85%, 06/01/25		65		69,361
3.20%, 07/01/26		737		763,271
4.20%, 10/01/28		288		319,463
3.50%, 07/01/29		280		294,302
Global Payments, Inc.:
3.80%, 04/01/21		62		63,220
3.75%, 06/01/23		85		88,538
4.00%, 06/01/23		12		12,626
2.65%, 02/15/25		90		90,410
4.80%, 04/01/26		308		342,839
3.20%, 08/15/29		255		259,898
IBM Credit LLC, 3.45%, 11/30/20		210		213,242
International Business Machines Corp.:
2.90%, 11/01/21		100		101,855
3.00%, 05/15/24		235		243,864
3.30%, 05/15/26		980		1,034,545
Mastercard, Inc.:
2.95%, 11/21/26		50		52,022
2.95%, 06/01/29		345		360,043
3.65%, 06/01/49		75		83,316
PayPal Holdings, Inc.:
2.20%, 09/26/22		10		10,057
2.40%, 10/01/24		195		196,923
2.65%, 10/01/26		155		157,177
2.85%, 10/01/29		250		252,322
Visa, Inc., 4.30%, 12/14/45		43		52,860
Zayo Group LLC:
6.38%, 05/15/25		99		102,052
5.75%, 01/15/27^(b)		180		182,925

				5,923,534


Security	Par (000)		Value

Leisure Products — 0.0%
Hasbro, Inc.:
2.60%, 11/19/22	USD	131	$	131,802
3.90%, 11/19/29		50		50,363

				182,165

Life Sciences Tools & Services — 0.2%
Agilent Technologies, Inc.:
3.88%, 07/15/23		34		35,681
3.05%, 09/22/26		366		374,363
2.75%, 09/15/29		105		104,254
Thermo Fisher Scientific, Inc.:
2.95%, 09/19/26		478		491,574
2.60%, 10/01/29		285		281,933
5.30%, 02/01/44		5		6,406
1.88%, 10/01/49	EUR	200		207,500

				1,501,711

Machinery — 0.1%
CNH Industrial NV, 3.85%, 11/15/27	USD	40		41,764
Parker-Hannifin Corp.:
2.70%, 06/14/24		140		143,031
3.25%, 06/14/29		110		114,923
Terex Corp., 5.63%, 02/01/25^(b)		64		66,080

				365,798

Media — 1.1%
Charter Communications Operating LLC:
4.50%, 02/01/24		230		247,533
4.91%, 07/23/25		327		360,085
4.20%, 03/15/28		15		15,991
6.38%, 10/23/35		471		592,822
6.48%, 10/23/45		329		407,870
5.75%, 04/01/48		130		151,830
5.13%, 07/01/49		45		48,976
4.80%, 03/01/50		188		198,247
Clear Channel Worldwide Holdings, Inc., 5.13%, 08/15/27^(b)		138		143,699
Comcast Corp.:
3.13%, 07/15/22		7		7,220
3.70%, 04/15/24		51		54,396
3.15%, 03/01/26		376		394,199
2.35%, 01/15/27		30		29,975
3.15%, 02/15/28		86		90,161
4.15%, 10/15/28		37		41,675
4.25%, 01/15/33		145		168,067
4.20%, 08/15/34		55		62,771
5.65%, 06/15/35		1		1,316
4.40%, 08/15/35		76		89,150
6.50%, 11/15/35		130		184,367
3.20%, 07/15/36		516		528,287
4.60%, 10/15/38		311		370,795
4.65%, 07/15/42		70		84,169
3.40%, 07/15/46		189		191,829
3.97%, 11/01/47		45		49,578
4.95%, 10/15/58		5		6,516
Cox Communications, Inc.^(b):
3.15%, 08/15/24		557		572,785
3.35%, 09/15/26		32		33,028
Diamond Sports Group LLC, 6.63%, 08/15/27^(b)		200		194,500
Discovery Communications LLC:
5.00%, 09/20/37		158		178,569
5.20%, 09/20/47		175		203,997
Fox Corp., 4.03%, 01/25/24^(b)		75		79,924
Gray Television, Inc.^(b):
5.88%, 07/15/26		78		82,973
7.00%, 05/15/27		89		98,901


SCHEDULE OF INVESTMENTS			19

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Media (continued)
Meredith Corp., 6.88%, 02/01/26	USD	140	$	145,558
Nexstar Broadcasting, Inc., 5.63%, 07/15/27^(b)		127		133,833
Outfront Media Capital LLC, 5.00%, 08/15/27^(b)		74		77,515
Time Warner Cable LLC:
5.00%, 02/01/20		58		58,109
4.00%, 09/01/21		22		22,513
6.55%, 05/01/37		50		61,337
5.50%, 09/01/41		113		126,233
4.50%, 09/15/42		9		9,201
ViacomCBS, Inc.:
6.88%, 04/30/36		122		163,363
4.38%, 03/15/43		150		159,039

				6,922,902

Metals & Mining — 0.2%
Anglo American Capital plc^(b):
3.63%, 09/11/24		270		280,111
4.75%, 04/10/27		220		240,654
ArcelorMittal SA:
3.60%, 07/16/24		28		28,713
6.13%, 06/01/25		10		11,490
4.55%, 03/11/26		90		95,574
Barrick Gold Corp.:
3.85%, 04/01/22		108		112,402
5.25%, 04/01/42		46		54,899
Barrick North America Finance LLC, 5.75%, 05/01/43		47		59,845
Chinalco Capital Holdings Ltd., 4.25%, 04/21/22		200		202,870
Newmont Goldcorp Corp., 2.80%, 10/01/29		190		188,245
Nucor Corp.:
5.20%, 08/01/43		40		49,409
4.40%, 05/01/48		18		20,423
Steel Dynamics, Inc., 5.13%, 10/01/21		110		110,066
Teck Resources Ltd., 6.13%, 10/01/35		81		95,254

				1,549,955

Multiline Retail — 0.0%
Dollar General Corp.:
3.88%, 04/15/27		40		42,833
4.13%, 05/01/28		9		9,830

				52,663

Multi-Utilities — 0.1%
Ameren Illinois Co.:
3.80%, 05/15/28		120		130,847
3.25%, 03/15/50		155		156,970
Consumers Energy Co.:
3.38%, 08/15/23		2		2,090
3.80%, 11/15/28		25		27,647
3.95%, 07/15/47		21		23,535
4.05%, 05/15/48		45		51,929
4.35%, 04/15/49		8		9,712
3.75%, 02/15/50		161		177,981
3.10%, 08/15/50		85		84,850

				665,561

Oil, Gas & Consumable Fuels — 2.7%
BP Capital Markets America, Inc.:
3.79%, 02/06/24		168		178,800
3.80%, 09/21/25		297		321,439
3.41%, 02/11/26		24		25,572
3.12%, 05/04/26		105		109,724
3.94%, 09/21/28		20		22,106
BP Capital Markets plc:
2.32%, 02/13/20		46		46,010
3.81%, 02/10/24		10		10,684
3.28%, 09/19/27		7		7,366


Security	Par (000)		Value

Oil, Gas & Consumable Fuels (continued)
Cameron LNG LLC^(b):
3.30%, 01/15/35	USD	245	$	247,448
3.40%, 01/15/38		245		245,893
Cheniere Corpus Christi Holdings LLC:
5.88%, 03/31/25		348		391,312
5.13%, 06/30/27		429		474,122
Chevron Corp., 2.90%, 03/03/24		282		292,315
Cimarex Energy Co.:
4.38%, 06/01/24		69		72,884
4.38%, 03/15/29		2		2,122
Citgo Holding, Inc., 9.25%, 08/01/24^(b)		75		80,437
Concho Resources, lnc., 3.75%, 10/01/27		150		157,776
Diamondback Energy, Inc., 3.50%, 12/01/29		375		381,600
Enbridge Energy Partners LP, 7.38%, 10/15/45		13		19,422
Enbridge, Inc.:
2.90%, 07/15/22		55		56,032
5.50%, 12/01/46		55		70,684
(LIBOR USD 3 Month + 3.42%), 5.50%, 07/15/77^(a)		475		490,062
Energy Transfer Operating LP:
5.88%, 01/15/24		178		197,071
4.75%, 01/15/26		6		6,498
4.20%, 04/15/27		5		5,237
5.50%, 06/01/27		98		110,177
5.80%, 06/15/38		56		63,424
6.50%, 02/01/42		448		532,898
5.15%, 03/15/45		5		5,264
6.13%, 12/15/45		18		20,875
5.30%, 04/15/47		158		168,670
6.00%, 06/15/48		2		2,334
Enterprise Products Operating LLC:
3.75%, 02/15/25		25		26,644
3.13%, 07/31/29		34		34,986
Series D, 6.88%, 03/01/33		56		76,367
5.95%, 02/01/41		21		27,102
4.45%, 02/15/43		176		193,699
4.85%, 03/15/44		25		28,927
5.10%, 02/15/45		206		246,969
EOG Resources, Inc.:
4.15%, 01/15/26		80		87,941
3.90%, 04/01/35		20		22,187
Exxon Mobil Corp.:
2.73%, 03/01/23		70		71,700
2.02%, 08/16/24		40		40,145
2.71%, 03/06/25		274		283,286
3.04%, 03/01/26		48		50,359
2.28%, 08/16/26		268		269,808
3.00%, 08/16/39		49		49,131
3.57%, 03/06/45		10		10,739
4.11%, 03/01/46		24		28,177
Hess Corp., 6.00%, 01/15/40		120		141,798
Kinder Morgan Energy Partners LP:
5.80%, 03/15/35		55		66,590
6.50%, 02/01/37		112		139,704
6.95%, 01/15/38		51		67,569
6.38%, 03/01/41		43		54,002
5.00%, 03/01/43		120		131,615
Kinder Morgan, Inc., 4.30%, 03/01/28		254		276,966
Marathon Petroleum Corp.:
4.75%, 12/15/23		106		115,200
5.13%, 12/15/26		9		10,196
4.75%, 09/15/44		15		16,491
5.85%, 12/15/45		65		74,645
MPLX LP:
4.88%, 12/01/24		489		531,637


20		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Oil, Gas & Consumable Fuels (continued)
5.25%, 01/15/25^(b)	USD	40	$	42,014
4.13%, 03/01/27		398		418,075
4.25%, 12/01/27^(b)		220		231,641
NGPL PipeCo LLC, 4.38%, 08/15/22^(b)		102		105,951
Northwest Pipeline LLC, 4.00%, 04/01/27		365		388,712
Occidental Petroleum Corp.:
2.60%, 08/13/21		63		63,466
3.20%, 08/15/26		45		45,541
0.00%, 10/10/36^(j)		2,000		1,004,675
Petrobras Global Finance BV:
7.38%, 01/17/27		141		171,738
6.00%, 01/27/28		57		64,909
7.25%, 03/17/44		452		548,191
6.85%, 06/05/2115		136		155,720
Plains All American Pipeline LP, 3.65%, 06/01/22		6		6,156
ReNew Power Synthetic, 6.67%, 03/12/24		200		207,000
Sabine Pass Liquefaction LLC:
5.63%, 04/15/23^(e)		184		200,269
5.75%, 05/15/24		460		513,221
5.63%, 03/01/25		661		744,490
5.88%, 06/30/26		273		313,820
Spectra Energy Partners LP:
3.38%, 10/15/26		3		3,106
5.95%, 09/25/43		20		25,138
4.50%, 03/15/45		73		80,549
Suncor Energy, Inc.:
3.60%, 12/01/24		85		90,214
6.80%, 05/15/38		70		99,727
6.50%, 06/15/38		44		61,251
Sunoco Logistics Partners Operations LP:
5.30%, 04/01/44		17		18,094
5.35%, 05/15/45		12		12,905
Texas Eastern Transmission LP, 3.50%, 01/15/28^(b)		475		488,007
Total Capital International SA:
2.75%, 06/19/21		40		40,540
2.88%, 02/17/22		20		20,436
3.70%, 01/15/24		2		2,127
3.75%, 04/10/24		70		74,978
2.43%, 01/10/25		200		202,541
TransCanada PipeLines Ltd.:
3.75%, 10/16/23		13		13,700
4.88%, 01/15/26		487		545,269
4.25%, 05/15/28		115		127,741
4.63%, 03/01/34		20		22,814
5.85%, 03/15/36		33		40,815
6.20%, 10/15/37		10		13,049
4.75%, 05/15/38		38		43,414
6.10%, 06/01/40		179		236,991
5.10%, 03/15/49		2		2,441
Transcontinental Gas Pipe Line Co. LLC:
7.85%, 02/01/26		162		205,895
4.00%, 03/15/28		246		261,738
4.60%, 03/15/48		55		60,314
Valero Energy Corp.:
3.65%, 03/15/25		39		41,488
3.40%, 09/15/26		297		311,322
Western Midstream Operating LP:
4.00%, 07/01/22		90		92,256
4.65%, 07/01/26		100		102,401
5.30%, 03/01/48		15		13,116
Williams Cos., Inc. (The):
4.55%, 06/24/24		24		25,912
3.90%, 01/15/25		29		30,540


Security	Par (000)		Value

Oil, Gas & Consumable Fuels (continued)
4.00%, 09/15/25	USD	72	$	76,395
3.75%, 06/15/27		98		102,220
Series A, 7.50%, 01/15/31		15		19,577
5.75%, 06/24/44		110		130,366

				16,955,814

Paper & Forest Products — 0.1%
Georgia-Pacific LLC:
5.40%, 11/01/20^(b)		177		181,913
3.73%, 07/15/23^(b)		184		192,644
3.60%, 03/01/25^(b)		40		42,270
7.38%, 12/01/25		97		122,769
7.75%, 11/15/29		60		84,941
8.88%, 05/15/31		13		20,206

				644,743

Pharmaceuticals — 0.9%
Allergan Funding SCS:
3.85%, 06/15/24		14		14,706
3.80%, 03/15/25		487		511,792
4.55%, 03/15/35		269		294,075
Bausch Health Americas, Inc.^(b):
9.25%, 04/01/26		154		176,884
8.50%, 01/31/27		180		204,984
Bausch Health Cos., Inc.^(b):
5.88%, 05/15/23		102		102,893
9.00%, 12/15/25		157		178,540
7.00%, 01/15/28		74		81,681
7.25%, 05/30/29		76		86,830
Bristol-Myers Squibb Co.^(b):
2.25%, 08/15/21		25		25,156
2.75%, 02/15/23		305		310,852
3.25%, 02/20/23		575		595,539
3.63%, 05/15/24		3		3,171
3.20%, 06/15/26		721		757,496
4.13%, 06/15/39		5		5,771
GlaxoSmithKline Capital plc, 3.38%, 06/01/29		55		59,034
GlaxoSmithKline Capital, Inc., 3.88%, 05/15/28		330		364,515
Pfizer, Inc.:
3.00%, 06/15/23		16		16,636
5.80%, 08/12/23		29		32,776
3.45%, 03/15/29		4		4,311
Shire Acquisitions Investments Ireland DAC:
2.88%, 09/23/23		170		173,233
3.20%, 09/23/26		469		483,349
Takeda Pharmaceutical Co. Ltd., 5.00%, 11/26/28		600		699,055
Wyeth LLC, 5.95%, 04/01/37		341		465,800

				5,649,079

Real Estate Management & Development — 0.5%
Central China Real Estate Ltd.:
6.50%, 03/05/21		200		199,418
6.75%, 11/08/21		200		199,132
China Aoyuan Group Ltd., 7.95%, 02/19/23		200		212,000
China Resources Land Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.14%), 3.75%^(a)(f)		200		200,500
CIFI Holdings Group Co. Ltd., 5.50%, 01/23/22		200		201,250
Easy Tactic Ltd., 8.13%, 07/11/24		200		203,500
Kaisa Group Holdings Ltd., 11.95%, 10/22/22		200		209,500
Powerlong Real Estate Holdings Ltd., 7.13%, 11/08/22		200		202,370
Ronshine China Holdings Ltd., 8.95%, 01/22/23		200		209,375
Scenery Journey Ltd., 11.00%, 11/06/20		200		204,500
Sunac China Holdings Ltd., 7.50%, 02/01/24		200		205,350


SCHEDULE OF INVESTMENTS			21

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Real Estate Management & Development (continued)
Vanke Real Estate Hong Kong Co. Ltd., 3.15%, 05/12/25	USD	200	$	199,381
Yuzhou Properties Co. Ltd.:
6.00%, 10/25/23		200		195,500
8.50%, 02/26/24		200		207,875
Zhenro Properties Group Ltd., 8.70%, 08/03/22		200		203,500

				3,053,151

Road & Rail — 0.4%
Burlington Northern Santa Fe LLC:
3.00%, 03/15/23		89		91,438
6.15%, 05/01/37		63		88,311
5.05%, 03/01/41		160		198,340
4.95%, 09/15/41		25		30,625
CSX Corp.:
4.25%, 03/15/29		90		101,385
6.15%, 05/01/37		15		19,939
4.30%, 03/01/48		142		161,323
4.75%, 11/15/48		93		112,858
4.50%, 03/15/49		109		127,753
3.35%, 09/15/49		125		123,294
4.25%, 11/01/66		59		63,119
Norfolk Southern Corp.:
3.85%, 01/15/24		60		63,679
3.65%, 08/01/25		86		92,045
2.90%, 06/15/26		255		262,973
2.55%, 11/01/29		6		5,985
4.84%, 10/01/41		30		35,553
4.45%, 06/15/45		45		51,943
3.94%, 11/01/47		23		24,790
4.10%, 05/15/49		25		27,631
3.40%, 11/01/49		25		24,838
4.05%, 08/15/52		112		123,304
Penske Truck Leasing Co. LP^(b):
2.70%, 03/14/23		5		5,054
4.45%, 01/29/26		20		21,564
3.40%, 11/15/26		20		20,419
3.35%, 11/01/29		20		19,986
Ryder System, Inc.:
3.45%, 11/15/21		21		21,471
2.80%, 03/01/22		3		3,038
3.40%, 03/01/23		120		123,768
Union Pacific Corp.:
3.15%, 03/01/24		130		135,342
2.75%, 03/01/26		175		179,357
3.38%, 02/01/35		93		96,388
3.60%, 09/15/37		221		230,574
3.55%, 08/15/39		34		35,333
3.84%, 03/20/60^(b)		93		94,360

				2,817,780

Semiconductors & Semiconductor Equipment — 0.7%
Analog Devices, Inc., 3.50%, 12/05/26		105		110,170
Applied Materials, Inc.:
5.10%, 10/01/35		30		37,932
4.35%, 04/01/47		227		274,334
Broadcom Corp.:
2.38%, 01/15/20		38		38,002
3.13%, 01/15/25		86		87,048
3.88%, 01/15/27		669		694,929
Broadcom, Inc.^(b):
3.13%, 04/15/21		40		40,486
4.25%, 04/15/26		295		313,340
KLA Corp.:
4.10%, 03/15/29		225		246,522
5.00%, 03/15/49		105		129,162


Security	Par (000)		Value

Semiconductors & Semiconductor Equipment (continued)
Lam Research Corp.:
2.75%, 03/15/20	USD	121	$	121,061
3.75%, 03/15/26		257		275,541
4.00%, 03/15/29		15		16,520
4.88%, 03/15/49		117		146,520
NVIDIA Corp., 3.20%, 09/16/26		508		533,480
NXP BV^(b):
4.13%, 06/01/21		450		461,379
3.88%, 09/01/22		200		207,510
4.63%, 06/01/23		300		320,730
3.88%, 06/18/26		30		31,825
5.55%, 12/01/28		3		3,507
4.30%, 06/18/29		157		169,777
QUALCOMM, Inc.:
4.80%, 05/20/45		71		86,995
4.30%, 05/20/47		98		112,433
Texas Instruments, Inc.:
2.25%, 05/01/23		90		91,128
2.25%, 09/04/29		140		138,237
3.88%, 03/15/39		35		39,569

				4,728,137

Software — 0.5%
Autodesk, Inc., 3.50%, 06/15/27		468		490,685
Microsoft Corp.:
3.50%, 02/12/35		331		364,721
4.20%, 11/03/35		91		108,268
3.45%, 08/08/36		606		664,184
3.70%, 08/08/46		195		220,497
Oracle Corp.:
2.50%, 05/15/22		40		40,525
2.65%, 07/15/26		370		378,505
3.90%, 05/15/35		274		305,612
3.85%, 07/15/36		80		87,717
3.80%, 11/15/37		14		15,301
5.38%, 07/15/40		84		109,187
4.13%, 05/15/45		51		57,630
4.00%, 07/15/46		21		23,377

				2,866,209

Specialty Retail — 0.1%
Home Depot, Inc. (The):
2.80%, 09/14/27		25		26,006
3.90%, 12/06/28		35		39,308
2.95%, 06/15/29		142		147,752
5.88%, 12/16/36		4		5,522
Lowe’s Cos., Inc.:
4.38%, 09/15/45		150		167,437
3.70%, 04/15/46		55		56,106
4.05%, 05/03/47		55		59,419

				501,550

Technology Hardware, Storage & Peripherals — 0.3%
Apple, Inc.:
3.00%, 02/09/24		175		181,748
2.85%, 05/11/24		8		8,275
3.35%, 02/09/27		22		23,434
3.85%, 05/04/43		759		850,939
Dell International LLC, 8.10%, 07/15/36^(b)		295		387,907
Hewlett Packard Enterprise Co.^(e):
3.60%, 10/15/20		2		2,023
4.40%, 10/15/22		20		21,132
6.35%, 10/15/45		95		114,393
HP, Inc., 6.00%, 09/15/41		10		11,088
Seagate HDD Cayman:
4.25%, 03/01/22		22		22,773


22		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Technology Hardware, Storage & Peripherals (continued)
5.75%, 12/01/34	USD	50	$	52,384

				1,676,096

Thrifts & Mortgage Finance — 0.1%^(b)
BPCE SA, 2.70%, 10/01/29		491		487,426
Nationstar Mortgage Holdings, Inc.:
8.13%, 07/15/23		108		114,320
9.13%, 07/15/26		88		97,460

				699,206

Tobacco — 0.5%
Altria Group, Inc.:
4.40%, 02/14/26		348		378,327
4.80%, 02/14/29		292		325,482
5.80%, 02/14/39		536		630,612
6.20%, 02/14/59		22		26,215
BAT Capital Corp.:
3.22%, 09/06/26		115		115,882
3.56%, 08/15/27		214		218,500
4.54%, 08/15/47		136		136,778
Philip Morris International, Inc.:
2.13%, 05/10/23		85		85,259
2.88%, 05/01/24		170		174,995
4.50%, 03/20/42		5		5,683
3.88%, 08/21/42		29		30,210
Reynolds American, Inc.:
4.45%, 06/12/25		606		652,592
5.70%, 08/15/35		29		33,717
5.85%, 08/15/45		250		286,923

				3,101,175

Trading Companies & Distributors — 0.1%
Beacon Roofing Supply, Inc., 4.88%, 11/01/25^(b)		134		134,670
BOC Aviation Ltd., 3.00%, 09/11/29		200		196,138
GATX Corp., 2.60%, 03/30/20		59		59,035
H&E Equipment Services, Inc., 5.63%, 09/01/25		106		111,035
Herc Holdings, Inc., 5.50%, 07/15/27^(b)		134		141,035

				641,913

Wireless Telecommunication Services — 0.3%
Sprint Corp.:
7.63%, 02/15/25		176		193,133
7.63%, 03/01/26		177		195,196
Sprint Spectrum Co. LLC, 3.36%, 09/20/21^(b)(e)		346		349,143
Vodafone Group plc:
3.75%, 01/16/24		153		161,844
4.13%, 05/30/25		118		128,180
4.38%, 05/30/28		18		19,957
5.00%, 05/30/38		8		9,265
4.38%, 02/19/43		135		144,988
5.25%, 05/30/48		336		403,611
5.13%, 06/19/59		1		1,176

				1,606,493


Total Corporate Bonds — 31.3% (Cost: $189,518,550)				197,636,786


Floating Rate Loan Interests — 0.7%^(k)

Air Freight & Logistics — 0.1%
XPO Logistics, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 3.80%, 02/24/25		309		310,564


Banks — 0.1%
Goldman Sachs Bank USA, Term Loan, (LIBOR USD 6 Month + 1.90%), 4.10%, 09/17/22^(c)		368		366,783


Security	Par (000)		Value

Building Products — 0.0%
Advanced Drainage Systems, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.00%, 07/31/26	USD	45	$	44,869
Jeld-Wen, Inc., Term Loan, (LIBOR USD 3 Month + 2.00%), 3.94%, 12/14/24		117		117,450

				162,319

Capital Markets — 0.0%
Goldman Sachs Lending Partners LLC, Term Loan, (LIBOR USD 6 Month + 1.75%), 3.95%, 09/17/22^(c)		157		156,422


Construction Materials — 0.0%
Foundation Building Materials, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.00%), 4.80%, 08/13/25		134		134,068


Diversified Financial Services — 0.0%
Triton Bidco, Term Loan B, 09/23/26^(l)		111		111,703


Health Care Providers & Services — 0.1%
Acadia Healthcare Co., Term Loan B2, (LIBOR USD 1 Month + 2.50%), 4.30%, 02/16/23		304		303,947
Select Medical Corp., Term Loan, (LIBOR USD 3 Month + 2.50%), 4.58%, 03/01/21		46		45,998

				349,945

Hotels, Restaurants & Leisure — 0.1%
Aimbridge Acquisition, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%), 5.54%, 02/02/26^(c)		156		157,407
Golden Nugget, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 2.75%), 4.55% - 4.72%, 10/04/23		186		186,035

				343,442

Media — 0.0%
CSC Holdings LLC, Term Loan B, (LIBOR USD 1 Month + 2.50%), 4.24%, 04/15/27		181		181,600
Lamar Media Corp., Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.56%, 03/14/25		19		19,380

				200,980

Oil, Gas & Consumable Fuels — 0.1%
Buckeye Partners LP, Term Loan, (LIBOR USD 1 Month + 2.75%), 4.44%, 11/01/26		467		470,699


Pharmaceuticals — 0.0%
Grifols Worldwide Operations Ltd., Term Loan B, (LIBOR USD 1 Month + 2.00%), 3.74%, 11/15/27		287		289,600


Road & Rail — 0.0%
Genesee & Wyoming, Inc., Term Loan, 11/06/26^(l)		169		170,448


Thrifts & Mortgage Finance — 0.2%^(c)
Caliber Home Loans, Inc., Term Loan, 04/24/21^(l)		477		475,717
Roundpoint Mortgage Servicing Corp., Term Loan, (LIBOR USD 6 Month + 2.49%), 5.87%, 08/08/20		832		832,138

				1,307,855


Total Floating Rate Loan Interests — 0.7% (Cost: $4,361,013)				4,374,828


SCHEDULE OF INVESTMENTS			23

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Foreign Agency Obligations — 0.8%

Argentina — 0.0%
YPF SA^(b):
8.50%, 07/28/25	USD	15	$	14,114
8.50%, 06/27/29		10		9,028

				23,142

India — 0.0%
Power Finance Corp. Ltd., 4.50%, 06/18/29		200		206,312


Indonesia — 0.0%
Indonesia Asahan Aluminium Persero PT, 5.71%, 11/15/23		200		221,125


Mexico — 0.8%
Petroleos Mexicanos:
6.38%, 02/04/21		224		232,540
(LIBOR USD 3 Month + 3.65%), 5.54%, 03/11/22^(a)		44		45,843
4.50%, 01/23/26		55		54,665
6.88%, 08/04/26		103		113,094
6.49%, 01/23/27^(b)		258		274,770
6.50%, 03/13/27		2,013		2,132,723
5.35%, 02/12/28		1,490		1,475,100
6.63%, 06/15/35		127		129,921
7.69%, 01/23/50^(b)		208		227,908

				4,686,564

South Africa — 0.0%
Eskom Holdings SOC Ltd., 6.75%, 08/06/23^(b).		200		203,500


Total Foreign Agency Obligations — 0.8% (Cost: $5,166,817)				5,340,643


Foreign Government Obligations — 2.6%

Argentina — 0.1%
Republic of Argentina:
7.50%, 04/22/26		150		77,672
5.88%, 01/11/28		335		157,345
7.13%, 07/06/36		150		71,766
6.88%, 01/11/48		224		107,240

				414,023

Colombia — 0.2%
Republic of Colombia, 3.88%, 04/25/27		1,408		1,492,480


Egypt — 0.1%
Arab Republic of Egypt:
15.90%, 07/02/24	EGP	550		36,847
16.10%, 05/07/29		5,041		352,282
5.63%, 04/16/30	EUR	117		135,504
6.38%, 04/11/31^(b)		132		158,244

				682,877

Hungary — 0.1%
Republic of Hungary, 5.38%, 03/25/24	USD	414		465,621


Indonesia — 0.4%
Republic of Indonesia:
4.10%, 04/24/28		270		293,119
8.25%, 05/15/29	IDR	9,034,000		707,362
6.63%, 05/15/33		1,064,000		71,316
8.38%, 03/15/34		4,623,000		358,651
7.50%, 06/15/35		6,138,000		441,034
8.38%, 04/15/39		7,876,000		609,174

				2,480,656


Security	Par (000)		Value

Mexico — 0.8%
United Mexican States:
6.50%, 06/09/22	MXN	88	$	462,028
8.00%, 12/07/23		79		436,064
8.00%, 09/05/24		62		344,415
10.00%, 12/05/24		186		1,117,481
4.15%, 03/28/27	USD	2,233		2,391,403

				4,751,391

Nigeria — 0.0%
Federal Republic of Nigeria, 13.98%, 02/23/28	NGN	19,895		61,357


Panama — 0.1%
Republic of Panama, 3.88%, 03/17/28	USD	626		682,927


Peru — 0.1%
Republic of Peru, 4.13%, 08/25/27		548		613,760


Philippines — 0.2%
Republic of the Philippines, 3.00%, 02/01/28		1,010		1,049,107


Russia — 0.3%
Russian Federation:
7.10%, 10/16/24	RUB	47,161		795,524
8.50%, 09/17/31		61,886		1,175,875

				1,971,399

Saudi Arabia — 0.1%
Kingdom of Saudi Arabia:
3.25%, 10/26/26	USD	200		206,500
4.38%, 04/16/29		230		257,025

				463,525

Sri Lanka — 0.0%
Democratic Socialist Republic of Sri Lanka, 7.55%, 03/28/30		200		197,487


Turkey — 0.0%
Republic of Turkey, 7.63%, 04/26/29		200		221,375


United Arab Emirates — 0.0%
Emirate of Abu Dhabi United Arab Emirates, 3.13%, 09/30/49		200		195,063


Uruguay — 0.1%
Oriental Republic of Uruguay, 4.38%, 10/27/27		683		754,248


Total Foreign Government Obligations — 2.6% (Cost: $15,854,404)				16,497,296


	Shares

Investment Companies — 4.3%
BlackRock Allocation Target Shares- BATS Series A*		2,726,552		27,401,851


Total Investment Companies — 4.3% (Cost: $27,500,000)				27,401,851


	Par (000)

Municipal Bonds — 5.0%
American Municipal Power, Inc. (Combined Hydroelectric Project):
Series 2010B, RB, 7.83%, 02/15/41		50		78,179
Series 2009B, RB, 6.45%, 02/15/44		30		41,594
Arizona Health Facilities Authority (Banner Health), Series 2007B, RB, VRDN, 2.22%, 01/01/20^(m)		35		34,721


24		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds (continued)
Bay Area Toll Authority:
Series 2019F-1, RB, 2.43%, 04/01/26	USD	285	$	287,613
Series 2010S-1, RB, 6.92%, 04/01/40		90		131,845
Series 2010S-1, RB, 7.04%, 04/01/50		600		961,284
Berks County Industrial Development Authority (Tower Health Project), Series 2017, RB, 5.00%, 11/01/47		60		68,110
Buckeye Tobacco Settlement Financing Authority, Series 2007A-2, RB, 5.88%, 06/01/47		180		180,626
California Health Facilities Financing Authority (Cedars- Sinai Medical Center):
Series 2019, RB, 2.93%, 06/01/32		40		39,680
Series 2016A, RB, 5.00%, 08/15/33		40		48,695
Series 2017A, RB, 5.00%, 08/15/47		60		70,036
California State Public Works Board (Various Capital Projects), Series 2009G, Sub-Series G-2, RB, 8.36%, 10/01/34		35		53,580
Canaveral Port Authority:
Series 2018A, RB, 5.00%, 06/01/45		80		93,432
Series 2018B, RB, 5.00%, 06/01/48		80		94,891
Central Puget Sound Regional Transit Authority, Series 2015S-1, RB, 5.00%, 11/01/50		60		69,641
Central Texas Regional Mobility Authority:
Series 2015A, RB, 5.00%, 01/01/45		30		34,348
Series 2016, RB, 5.00%, 01/01/46		30		34,517
Chesapeake Bay Bridge & Tunnel District (Parallel Thimble Shoal Tunnel Project):
Series 2016, RB, 5.00%, 07/01/41		30		34,888
Series 2016, RB, 5.00%, 07/01/51		25		28,821
City of Atlanta, Series 2015, RB, 5.00%, 11/01/40		30		34,989
City of New York:
Series 2019D, Sub-Series D-2, GO, 3.76%, 12/01/27		115		124,891
Series 2019A, Sub-Series A-3, GO, 2.85%, 08/01/31		220		221,093
Series 2019A, Sub-Series A-3, GO, 2.90%, 08/01/32		370		371,683
Series 2010F-1, GO, 6.27%, 12/01/37...		85		117,867
Series 2018F, Sub-Series F-1, GO, 5.00%, 04/01/43		375		455,651
City of Riverside, Series 2010A, RB, 7.61%, 10/01/40		50		77,655
City of San Antonio Electric & Gas Systems, Series 2010A, RB, 5.81%, 02/01/41		160		219,901
Colorado Health Facilities Authority (Catholic Health Initiatives):
Series 2011A, RB, 5.25%, 02/01/31⁽ⁿ⁾		25		26,104
Series 2019A-2, RB, 5.00%, 08/01/44		520		613,408
Commonwealth Financing Authority:
Series 2018A, RB, 3.86%, 06/01/38		40		42,872
Series 2016A, RB, 4.14%, 06/01/38		60		65,756
Series 2019A, RB, 3.81%, 06/01/41		460		490,631
Commonwealth of Massachusetts, Series 2019H, GO, 2.90%, 09/01/49		175		166,596
Connecticut Housing Finance Authority, Series 2015A, RB, 3.75%, 11/15/40		1,350		1,397,034
Connecticut State Health & Educational Facilities Authority (Hartford Healthcare Corp.):
Series 2015F, RB, 5.00%, 07/01/45		60		67,048
Series 2015L, RB, 5.00%, 07/01/45		90		102,219
Contra Costa Community College District, Series 2010B, GO, 6.50%, 08/01/34		10		13,251


Security	Par (000)		Value

Municipal Bonds (continued)
County of Broward Airport System:
Series 2019C, RB, 2.81%, 10/01/31	USD	65	$	64,123
Series 2019C, RB, 2.91%, 10/01/32		60		59,308
County of Miami-Dade:
Series 2017D, RB, 3.35%, 10/01/29		20		20,689
Series 2019E, RB, 2.53%, 10/01/30		235		226,693
Series 2017D, RB, 3.45%, 10/01/30		35		36,357
Series 2017D, RB, 3.50%, 10/01/31		30		31,177
Series 2018C, RB, 4.06%, 10/01/31		55		59,719
Series 2015A, RB, 5.00%, 10/01/38		10		11,507
Series 2017B, RB, 5.00%, 10/01/40		60		70,708
Dallas Area Rapid Transit:
Series 2016A, RB, 5.00%, 12/01/41		60		70,444
Series 2016A, RB, 5.00%, 12/01/46		90		105,470
Dallas/Fort Worth International Airport, Series 2019A-2, RB, 3.14%, 11/01/45		100		99,334
DuBois Hospital Authority (Penn Highlands Healthcare),Series 2018, RB, 5.00%, 07/15/43		60		69,589
Dutchess County Local Development Corp. (Health Quest Systems, Inc. Project), Series 2016B, RB, 5.00%, 07/01/46		100		115,198
Foothill-Eastern Transportation Corridor Agency, Series 2019A, RB, 4.09%, 01/15/49		85		85,056
Grant County Public Utility District No. 2 (The Priest Rapids Project), Series 2015M, RB, 4.58%, 01/01/40		15		17,494
Great Lakes Water Authority Water Supply System, Series 2016C, RB, 5.25%, 07/01/33		20		24,016
Health & Educational Facilities Authority of the State of Missouri (Saint Luke’s Health System, Inc.):
Series 2016, RB, 5.00%, 11/15/29		25		29,877
Series 2016A, RB, 3.65%, 01/15/46		20		21,465
Series 2016B, RB, 3.09%, 09/15/51		115		112,312
Idaho Health Facilities Authority (Trinity Health Credit Group), Series 2017A, RB, 5.00%, 12/01/47		50		59,040
Indiana Finance Authority (CWA Authority Project):
Series 2015A, RB, 5.00%, 10/01/45		130		147,811
Series 2016A, RB, 5.00%, 10/01/46		420		492,425
Indiana Housing & Community Development Authority, Series 2018A, RB, 3.80%, 07/01/38		30		32,209
JobsOhio Beverage System, Series 2013B, RB, 3.99%, 01/01/29		340		369,519
Lexington County Health Services District, Inc., Series 2016, RB, 5.00%, 11/01/41		30		34,814
Los Angeles Community College District, Series 2010E, GO, 6.60%, 08/01/42		115		175,336
Los Angeles Department of Water & Power System, Series 2010D, RB, 6.57%, 07/01/45		45		70,413
Los Angeles Unified School District, Series 2010), GO, 6.76%, 07/01/34		375		513,652
Louisiana Public Facilities Authority, Series 2018E, RB, 5.00%, 07/01/48		50		58,838
Maryland Health & Higher Educational Facilities Authority:
Series 2015, RB, 5.00%, 08/15/25		80		94,230
Series 2015, RB, 5.00%, 08/15/27		50		58,616
Massachusetts Development Finance Agency (Partners Healthcare System Issue):
Series 2018J-2, RB, 5.00%, 07/01/43		80		94,882
Series 2017L, RB, 5.00%, 07/01/44		100		116,335


SCHEDULE OF INVESTMENTS			25

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds (continued)
Series 2016Q, RB, 5.00%, 07/01/47	USD	50	$	58,181
Series 2018J-2, RB, 5.00%, 07/01/48		70		82,318
Massachusetts Housing Finance Agency:
Series 2014B, RB, 4.50%, 12/01/39		25		26,213
Series 2014B, RB, 4.60%, 12/01/44		40		42,794
Series 2015A, RB, 4.50%, 12/01/48		40		42,073
Massachusetts School Building Authority:
Series 2019B, RB, 2.87%, 10/15/31		275		273,309
Series 2019B, RB, 2.97%, 10/15/32		170		169,590
Massachusetts Water Resources Authority, Series 2016C, RB, 5.00%, 08/01/40		30		35,844
Metropolitan Atlanta Rapid Transit Authority Series 2015A, RB, 5.00%, 07/01/41		110		128,134
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center):
Series 2016A, RB, 5.00%, 07/01/40		40		46,656
Series 2016A, RB, 5.00%, 07/01/46		60		69,394
Metropolitan Transportation Authority:
Series 2010A, RB, 6.67%, 11/15/39		55		77,464
Series 2009C, RB, 7.34%, 11/15/39		520		812,760
Series 2019C, RB, 5.00%, 11/15/41		80		98,807
Metropolitan Washington Airports Authority Dulles Toll Road (Dulles Metrorail and Capital Improvement Project), Series 2009D, RB, 7.46%, 10/01/46		30		47,798
Michigan Finance Authority (Henry Ford Health System):
Series 2016, RB, 5.00%, 11/15/28		50		60,828
Series 2019T, RB, 3.38%, 12/01/40		175		175,044
Series 2016, RB, 5.00%, 11/15/41		30		35,234
Series 2017A-MI, RB, 5.00%, 12/01/47⁽ⁿ⁾		120		133,332
Michigan State Housing Development Authority:
Series 2018B, RB, 3.55%, 10/01/33		30		31,940
Series 2018A, RB, 4.00%, 10/01/43		30		32,088
Series 2018A, RB, 4.05%, 10/01/48		20		21,286
Series 2018A, RB, 4.15%, 10/01/53		80		84,614
Mississippi Hospital Equipment & Facilities Authority (Baptist Memorial Health Corp.), Series 2016A, RB, 5.00%, 09/01/46		60		66,439
Municipal Electric Authority of Georgia (Plant Vogtle Units 3&4 Units Project):
Series 2010A, RB, 6.64%, 04/01/57		40		53,798
Series 2010A, RB, 6.66%, 04/01/57		75		104,234
New Hope Cultural Education Facilities Finance Corp. (Children’s Health System of Texas Project), Series 2017A, RB, 5.00%, 08/15/47		60		70,896
New Jersey Transportation Trust Fund Authority:
Series 2010C, RB, 5.75%, 12/15/28		140		161,297
Series 2010C, RB, 6.10%, 12/15/28⁽ⁿ⁾		135		140,365
Series 2016A, Sub-Series A-1, RB, 5.00%, 06/15/29		30		35,047
Series 2019B, RB, 4.13%, 06/15/42		95		93,950
New Jersey Turnpike Authority, Series 2009F, RB, 7.41%, 01/01/40		565		886,553
New Orleans Aviation Board (North Terminal Project), Series 2015B, RB, 5.00%, 01/01/40		50		56,286
New York City Housing Development Corp.:
Series 2018C-1-A, RB, 3.70%, 11/01/38		40		42,182
Series 2018C-1-B, RB, 3.85%, 11/01/43		110		116,105
Series 2018C-1-A, RB, 4.00%, 11/01/53		120		125,365


Security	Par (000)		Value

Municipal Bonds (continued)
New York City Transitional Finance Authority Building Aid, Series 2015S-2, RB, 5.00%, 07/15/40	USD	30	$	35,030
New York City Transitional Finance Authority Future Tax Secured:
Series 2014A, Sub-Series A-2, RB, 3.65%, 11/01/24		165		174,393
Series 2018, Sub-Series C-4, RB, 3.55%, 05/01/25		170		181,589
Series 2014A, Sub-Series A-2, RB, 3.75%, 11/01/25		165		174,426
Series 2017F, Sub-Series F-2, RB, 3.05%, 05/01/27		160		166,258
Series 2019C, Sub-Series C-3, RB, 3.35%, 11/01/30		255		265,939
Series 2019B, Sub-Series B-3, RB, 3.90%, 08/01/31		210		226,781
New York City Water & Sewer System:
Series 2010AA,, RB, 5.75%, 06/15/41		35		48,685
Series 2010EE, RB, 6.01%, 06/15/42		25		35,499
Series 2020AA, RB, 5.38%, 06/15/43⁽ⁿ⁾		135		140,531
Series 2020AA, RB, 5.38%, 06/15/43		65		67,350
Series 2011AA, RB, 5.44%, 06/15/43		60		81,620
Series 2011EE, RB, 5.50%, 06/15/43⁽ⁿ⁾		240		250,049
Series 2011CC, RB, 5.88%, 06/15/44		40		57,465
New York Convention Center Development Corp., Series 2015, RB, 5.00%, 11/15/40		30		35,309
New York State Dormitory Authority:
Series 2010H, RB, 5.39%, 03/15/40		60		76,152
Series 2019F, RB, 3.19%, 02/15/43^(o)		160		160,237
Series 2019B, RB, 3.14%, 07/01/43		120		118,957
New York State Urban Development Corp.:
Series 2017B, RB, 3.12%, 03/15/25		65		67,924
Series 2019B, RB, 3.25%, 03/15/25		100		105,369
Series 2019B, RB, 3.35%, 03/15/26		395		417,396
Series 2019B, RB, 2.35%, 03/15/27		230		228,779
Series 2017D, RB, 3.32%, 03/15/29		140		145,873
New York Transportation Development Corp. (LaGuardia Airport Terminal B Redevelopment Project):
Series 2016A, RB, 5.00%, 07/01/46		30		33,167
Series 2016A, RB, 5.25%, 01/01/50		340		381,171
North Carolina Turnpike Authority, Series 2018, RB, 5.00%, 01/01/35		60		73,682
Orange County Local Transportation Authority, Series 2010A, RB, 6.91%, 02/15/41		75		106,109
Oregon School Boards Association:
Series 2005A, GO, 4.76%, 06/30/28		220		245,890
Series 2002B, GO, 5.55%, 06/30/28		290		342,731
Series 2003B, GO, 5.68%, 06/30/28		210		251,767
Pennsylvania Economic Development Financing Authority (Pennsylvania Rapid Bridge Replacement Project (The)), Series 2015, RB, 5.00%, 06/30/23		310		345,294
Pennsylvania Turnpike Commission:
Series 2016A-1, RB, 5.00%, 12/01/46		50		58,203
Series 2018B, RB, 5.00%, 12/01/48		90		107,133
Port Authority of New York & New Jersey:
Series 165, RB, 5.65%, 11/01/40		95		126,872
Series 181, RB, 4.96%, 08/01/46		235		298,119
Series 174, RB, 4.46%, 10/01/62		105		128,922
Port of Seattle, Series 2018A, RB, 5.00%, 05/01/43		30		35,081


26		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Municipal Bonds (continued)
Regents of the University of California Medical Center Pooled, Series 2009F, RB, 6.58%, 05/15/49	USD	75	$	106,755
Royal Oak Hospital Finance Authority (William Beaumont Hospital Obligated Group), Series 2014D, RB, 5.00%, 09/01/39		40		44,760
Rutgers The State University of New Jersey, Series 2019R, RB, 3.27%, 05/01/43		90		88,475
Sacramento County Sanitation Districts Financing Authority, Series 2035B, RB, VRDN, 1.81%, 03/02/20^(m)		330		318,587
Salt River Project Agricultural Improvement & Power District, Series 2015A, RB, 5.00%, 12/01/45		180		210,091
San Antonio Water System, Series 2015B, RB, 5.00%, 05/15/39		30		34,798
San Diego Public Facilities Financing Authority, Series 2016A, RB, 5.00%, 05/15/39		50		60,229
San Jose Redevelopment Agency Successor Agency:
Series 2017A-T, 2.96%, 08/01/24		250		258,973
Series 2017A-T, 3.18%, 08/01/26		85		89,009
South Carolina Public Service Authority:
Series 2016D, RB, 2.39%, 12/01/23		257		255,851
Series 2012E, RB, 3.72%, 12/01/23		65		67,744
Series 2010C, RB, 6.45%, 01/01/50		136		199,882
State of California:
Series 2019, GO, 2.65%, 04/01/26		425		433,989
Series 2009, GO, 7.50%, 04/01/34		60		90,554
Series 2018, GO, 4.60%, 04/01/38		815		907,886
Series 2009, GO, 7.55%, 04/01/39		85		136,003
Series 2009, GO, 7.30%, 10/01/39		85		129,851
Series 2009, GO, 7.35%, 11/01/39		340		517,847
State of Colorado, Series 2018N, COP, 5.00%, 03/15/38		1,030		1,251,471
State of Connecticut:
Series 2017A, GO, 3.31%, 01/15/26		155		161,463
Series 2008A, GO, 5.85%, 03/15/32		210		267,187
State of Illinois, Series 2003, GO, 5.10%, 06/01/33		580		624,718
State of Minnesota, Series 2018A, GO, 5.00%, 08/01/36		170		212,797
State of New York, Series 2019B, GO, 2.80%, 02/15/32		205		205,656
State of Ohio:
Series 2017A, GO, 5.00%, 05/01/36		90		105,289
Series 2017A, GO, 5.00%, 05/01/37		70		81,837
State of Oregon, Series 2003, GO, 5.89%, 06/01/27		335		399,615
State of Washington:
Series 2016A-1, GO, 5.00%, 08/01/40		100		116,834
Series 2018B, GO, 5.00%, 08/01/40		40		48,351
Series 2018B, GO, 5.00%, 08/01/41		40		48,285
State of Wisconsin:
Series 2017C, RB, 3.15%, 05/01/27		65		67,782
Series 2017B, GO, 5.00%, 05/01/36		50		58,631
Series 2017B, GO, 5.00%, 05/01/38		50		58,456
Sumter Landing Community Development District, Series 2016, RB, 4.17%, 10/01/47		100		110,221
Tennessee Housing Development Agency (Residential Finance Program):
Series 2018-3, RB, 3.75%, 07/01/38		30		31,861
Series 2018-3, RB, 3.85%, 07/01/43		20		21,160
Series 2018-3, RB, 3.95%, 01/01/49		10		10,577


Security	Par (000)		Value

Municipal Bonds (continued)
Texas A&M University, Series 2017B, RB, 2.84%, 05/15/27	USD	75	$	77,228
Texas Municipal Gas Acquisition & Supply Corp. I, Series 2008D, RB, 6.25%, 12/15/26		30		35,463
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC Segment 3C Project), Series 2019, RB, 5.00%, 06/30/58		290		337,635
Tobacco Settlement Finance Authority, Series 2007A, RB, 7.47%, 06/01/47		125		129,603
TSASC, Inc., Series 2017A, RB, 5.00%, 06/01/41		60		67,314
University of California:
Series 2017AX, RB, 3.06%, 07/01/25		520		543,171
Series 2019BD, RB, 3.35%, 07/01/29		235		251,452
Series 2013AJ, RB, 4.60%, 05/15/31		300		345,282
Series 2015AO, RB, 5.00%, 05/15/32		80		95,220
Series 2009R, RB, 5.77%, 05/15/43		165		218,340
Series 2012AD, RB, 4.86%, 05/15/12		20		24,738
Virginia Small Business Financing Authority (Transform 66 P3 Project):
Series 2017, RB, 5.00%, 12/31/52		90		103,016
Series 2017, RB, 5.00%, 12/31/56		80		91,003
West Virginia Hospital Finance Authority (West Virginia United Health System Obligated Group):
Series 2016A, RB, 5.00%, 06/01/20		30		30,458
Series 2016A, RB, 5.00%, 06/01/21		30		31,550
Series 2016A, RB, 5.00%, 06/01/22		30		32,603
Series 2016A, RB, 5.00%, 06/01/23		25		28,001
Series 2016A, RB, 5.00%, 06/01/24		25		28,775


Total Municipal Bonds — 5.0% (Cost: $29,699,221)				31,282,103


Non-Agency Mortgage-Backed Securities — 3.7%

Collateralized Mortgage Obligations — 1.4%
Alternative Loan Trust:
Series 2005-22T1, Class A1, 2.14%, 06/25/35^(d)		143		124,433
Series 2005-72, Class A3, 2.39%, 01/25/36^(d)		72		67,699
Series 2005-76, Class 2A1, 3.24%, 02/25/36^(d)		25		23,178
Series 2006-11CB, Class 3A1, 6.50%, 05/25/36		64		49,016
Series 2006-15CB, Class A1, 6.50%, 06/25/36		10		7,700
Series 2006-OA14, Class 1A1, 3.97%, 11/25/46^(d)		88		77,785
Series 2006-OA16, Class A4C, 2.13%, 10/25/46^(d)		145		87,945
Series 2006-OA8, Class 1A1, 1.98%, 07/25/46^(d)		13		13,114
Series 2006-OC10, Class 2A3, 2.02%, 11/25/36^(d)		57		46,892
Series 2006-OC7, Class 2A3, 2.04%, 07/25/46^(d)		83		69,098
Series 2007-3T1, Class 1A1, 6.00%, 04/25/37		13		9,289
Series 2007-OA3, Class 1A1, 1.93%, 04/25/47^(d)		23		21,669
American Home Mortgage Assets Trust^(d):
Series 2006-3, Class 2A11, 3.18%, 10/25/46		64		57,038
Series 2006-4, Class 1A12, 2.00%, 10/25/46		76		51,855
Series 2006-5, Class A1, 3.16%, 11/25/46		125		60,105


SCHEDULE OF INVESTMENTS			27

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Collateralized Mortgage Obligations (continued)
Series 2007-1, Class A1, 2.94%, 02/25/47	USD	65	$	39,497
APS Resecuritization Trust^(b)(d):
Series 2016-1, Class 1MZ, 4.33%, 07/31/57		246		92,520
Series 2016-3, Class 3A, 4.64%, 09/27/46		191		194,794
Series 2016-3, Class 4A, 4.39%, 04/27/47^(c)		38		38,052
Banc of America Funding Trust^(b)(d):
Series 2014-R2, Class 1C, 0.00%, 11/26/36		143		35,493
Series 2016-R2, Class 1A1, 4.70%, 05/01/33^(c)		86		89,598
Bear Stearns Mortgage Funding Trust^(d):
Series 2006-SL1, Class A1, 2.07%, 08/25/36		52		51,319
Series 2007-AR2, Class A1, 1.96%, 03/25/37		158		148,045
Series 2007-AR3, Class 1A1, 1.93%, 03/25/37		17		16,767
Series 2007-AR4, Class 1A1, 1.99%, 09/25/47		68		64,767
Series 2007-AR4, Class 2A1, 2.00%, 06/25/37		22		21,587
Chase Mortgage Finance Trust, Series 2007- S6, Class 1A1, 6.00%, 12/25/37		877		633,923
CHL Mortgage Pass-Through Trust:
Series 2006-OA4, Class A1, 3.20%, 04/25/46^(d)		153		71,952
Series 2006-OA5, Class 3A1, 1.99%, 04/25/46^(d)		26		24,577
Series 2007-15, Class 2A2, 6.50%, 09/25/37		231		159,276
Citicorp Mortgage Securities Trust:
Series 2007-9, Class 1A1, 6.25%, 12/25/37		65		57,648
Series 2008-2, Class 1A1, 6.50%, 06/25/38		93		81,101
Credit Suisse Mortgage Capital Certificates^(b):
Series 2009-12R, Class 3A1, 6.50%, 10/27/37		281		154,809
Series 2019-RPL4, Class A1, 3.83%, 08/26/58		385		387,787
CSFB Mortgage-Backed Pass-Through Certificates, Series 2005-10, Class 10A1, 3.14%, 11/25/35^(d)		45		13,057
CSMC Trust^(b)(d):
Series 2009-5R, Class 4A4, 4.16%, 06/25/36		76		69,757
Series 2014-11R, Class 16A1, 3.98%, 09/27/47		45		45,605
Series 2015-6R, Class 5A1, 2.07%, 03/27/36		2		1,500
Series 2015-6R, Class 5A2, 2.07%, 03/27/36		60		45,941
Series 2019-JR1, Class A1,4.10%, 09/27/66		1,619		1,620,952
Deutsche Alt-A Securities Mortgage Loan Trust, Series 2007-OA4, Class A2A, 1.96%, 08/25/47^(d)		148		103,999
Deutsche Alt-B Securities Mortgage Loan Trust, Series 2006-AB3, Class A8, 6.36%, 07/25/36^(d)		13		11,737
GreenPoint Mortgage Funding Trust, Series 2006-AR2, Class 4A1, 4.24%, 03/25/36^(d)		26		26,006
GSMPS Mortgage Loan Trust^(b)(d):
Series 2005-RP1, Class 1AF, 2.14%, 01/25/35		48		44,256
Series 2005-RP2, Class 1AF, 2.14%, 03/25/35		57		52,761
Series 2006-RP1, Class 1AF1, 2.14%, 01/25/36		43		37,570
GSR Mortgage Loan Trust, Series 2007-1F, Class 2A4, 5.50%, 01/25/37		11		11,996


Security	Par (000)		Value

Collateralized Mortgage Obligations (continued)
HarborView Mortgage Loan Trust, Series 2007-4, Class 2A2, 2.01%, 07/19/47^(d)	USD	162	$	148,126
IndyMac INDX Mortgage Loan Trust^(d):
Series 2007-AR19, Class 3A1, 3.61%, 09/25/37		83		58,389
Series 2007-FLX5, Class 2A2, 2.03%, 08/25/37		155		136,948
Lehman XS Trust, Series 2007-20N, Class A1, 2.94%, 12/25/37^(d)		30		29,702
LSTAR Securities Investment Trust^(b)(d):
Series 2019-1, Class A1, 3.41%, 03/01/24		137		136,710
Series 2019-2, Class A1, 3.21%, 04/01/24		165		165,405
MASTR Resecuritization Trust, Series 2008-3, Class A1, 2.14%, 08/25/37^(b)(c)(d)		27		21,331
MCM Trust^(b):
Series 2018-NPL1, Class A, 4.00%, 05/28/58		70		70,079
Series 2018-NPL2, Class A, 4.00%, 10/25/28^(c)(e)		433		436,194
Series 2018-NPL2, Class B, 0.00%, 10/25/28^(c)		1,000		221,400
Merrill Lynch Alternative Note Asset Trust, Series 2007-OAR2, Class A2, 2.00%, 04/25/37^(d)		212		184,579
Mortgage Loan Resecuritization Trust, Series 2009-RS1, Class A85, 2.05%, 04/16/36^(b)(d)		394		345,502
New Residential Mortgage Loan Trust^(b):
Series 2019-2A, Class A1, 4.25%, 12/25/57^(d)		94		97,577
Series 2019-RPL1, Class A1, 4.33%, 02/26/24^(e)		757		759,162
Nomura Asset Acceptance Corp. Alternative Loan Trust, Series 2007-2, Class A4, 2.21%, 06/25/37^(d)		16		13,395
RALI Trust, Series 2007-QH9, Class A1, 3.47%, 11/25/37^(d)		37		34,516
Reperforming Loan REMIC Trust, Series 2005- R3, Class AF, 2.19%, 09/25/35^(b)(d)		6		5,381
Seasoned Credit Risk Transfer Trust^(d):
Series 2017-3, Class M2, 4.75%, 07/25/56^(b)		100		101,797
Series 2018-1, Class BX, 4.45%, 05/25/57		20		8,132
Series 2018-1, Class M, 4.75%, 05/25/57		20		20,547
Series 2018-3, Class M, 4.75%, 08/25/57^(b)		90		92,673
STACR Trust, Series 2018-DNA2, Class M2, 3.94%, 12/25/30^(b)(d)		47		47,845
Structured Adjustable Rate Mortgage Loan Trust, Series 2006-3, Class 4A, 4.02%, 04/25/36^(d)		68		54,849
Structured Asset Mortgage Investments II Trust^(d⁾:
Series 2006-AR4, Class 3A1, 1.98%, 06/25/36		94		91,036
Series 2006-AR5, Class 2A1, 2.00%, 05/25/46		57		48,902
WaMu Mortgage Pass-Through Certificates Trust, Series 2005-AR2, Class B1, 2.32%, 01/25/45^(d)		95		64,161
Washington Mutual Mortgage Pass-Through Certificates WMALT Trust:
Series 2006-4, Class 1A1, 6.00%, 04/25/36		87		84,812
Series 2006-4, Class 3A1, 6.50%, 05/25/36^(e)		43		39,674

				8,734,289


28		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Commercial Mortgage-Backed Securities — 2.1%
245 Park Avenue Trust, Series 2017-245P, Class E, 3.66%, 06/05/37^(b)(d)	USD	200	$	195,978
280 Park Avenue Mortgage Trust^(b)(d):
Series 2017-280P, Class D, 3.28%, 09/15/34		100		100,121
Series 2017-280P, Class E, 3.86%, 09/15/34		150		150,286
AOA Mortgage Trust, Series 2015-1177, Class C, 3.01%, 12/13/29^(b)(d)		100		100,433
Ashford Hospitality Trust, Series 2018-ASHF, Class D, 3.84%, 04/15/35^(b)(d)		19		18,952
BAMLL Commercial Mortgage Securities Trust^(b)(d):
Series 2015-200P, Class F, 3.60%, 04/14/33		300		296,642
Series 2016-ISQ, Class E, 3.61%, 08/14/34		200		197,529
Series 2017-SCH, Class CL, 3.24%, 11/15/32		100		99,996
Series 2017-SCH, Class DL, 3.74%, 11/15/32		100		100,040
Series 2018-DSNY, Class D, 3.44%, 09/15/34		650		651,139
Bancorp Commercial Mortgage Trust (The), Series 2018-CR3, Class A, 2.59%, 01/15/33^(b)(d)		61		60,683
Bayview Commercial Asset Trust^(b)(d):
Series 2005-2A, Class A1, 2.10%, 08/25/35		51		48,787
Series 2005-4A, Class A1, 2.09%, 01/25/36		45		43,772
Series 2005-4A, Class M1, 2.24%, 01/25/36		33		32,031
Series 2006-1A, Class A2, 2.15%, 04/25/36		12		11,120
Series 2006-3A, Class A1, 2.04%, 10/25/36		21		19,850
Series 2006-3A, Class A2, 2.09%, 10/25/36		17		16,578
Series 2007-2A, Class A1, 2.06%, 07/25/37		32		30,566
Series 2007-4A, Class A1, 2.24%, 09/25/37		164		153,877
BBCMS Mortgage Trust, Series 2018-TALL, Class A, 2.46%, 03/15/37^(b)(d)		35		34,825
BBCMS Trust, Series 2015-SRCH, Class A1, 3.31%, 08/10/35^(b)		100		103,117
Bear Stearns Commercial Mortgage Securities Trust, Series 2007-T26, Class AM, 5.45%, 01/12/45^(d)		29		28,613
Benchmark Mortgage Trust, Series 2019-B10, Class 3CCA, 3.90%, 03/15/62^(b)(d)		148		151,000
BHMS, Series 2018-ATLS, Class A, 2.99%, 07/15/35^(b)(d)		140		139,876
BWAY Mortgage Trust^(b):
Series 2013-1515, Class A2, 3.45%, 03/10/33		150		156,200
Series 2013-1515, Class C, 3.45%, 03/10/33		105		107,258
BX Commercial Mortgage Trust, Series 2018- IND, Class H, 4.74%, 11/15/35^(b)(d)		371		371,346
BXP Trust^(b)(d):
Series 2017-CC, Class D, 3.55%, 08/13/37		60		60,852
Series 2017-CC, Class E, 3.55%, 08/13/37		110		107,961
Series 2017-GM, Class D, 3.42%, 06/13/39		200		201,822
Series 2017-GM, Class E, 3.42%, 06/13/39		50		48,819
CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class D, 3.49%, 12/15/37^(b)(d)		218		218,612
CCRESG Commercial Mortgage Trust, Series 2016-HEAT, Class D, 5.49%, 04/10/29^(b)(d)		20		20,356
CD Mortgage Trust:
Series 2006-CD3, Class AM, 5.65%, 10/15/48		18		18,864
Series 2017-CD3, Class A4, 3.63%, 02/10/50		30		32,113
CFCRE Commercial Mortgage Trust, Series 2016-C3, Class A3, 3.87%, 01/10/48		10		10,709


Security	Par (000)		Value

Commercial Mortgage-Backed Securities (continued)
CFK Trust, Series 2019-FAX, Class D, 4.64%, 01/15/39^(b)(d)	USD	126	$	139,676
CGBAM Commercial Mortgage Trust, Series 2015-SMRT, Class E, 3.79%, 04/10/28^(b)(d)		100		99,943
CGDBB Commercial Mortgage Trust^(b)(d):
Series 2017-BIOC, Class A, 2.53%, 07/15/32		174		173,410
Series 2017-BIOC, Class D, 3.34%, 07/15/32		100		100,552
Series 2017-BIOC, Class E, 3.89%, 07/15/32		247		246,039
Citigroup Commercial Mortgage Trust^(d):
Series 2016-GC37, Class C, 4.92%, 04/10/49		20		21,424
Series 2016-P3, Class C, 4.83%, 04/15/49		10		10,770
Commercial Mortgage Trust:
Series 2005-C6, Class F, 5.72%, 06/10/44^(b)^(d)		78		78,543
Series 2014-CR14, Class A4, 4.24%, 02/10/47^(d)		30		32,013
Series 2014-CR16, Class A4, 4.05%, 04/10/47		177		187,853
Series 2014-CR17, Class A5, 3.98%, 05/10/47		59		62,774
Series 2014-CR19, Class A5, 3.80%, 08/10/47		50		53,002
Series 2014-LC15, Class A4, 4.01%, 04/10/47		50		53,181
Series 2014-UBS4, Class C, 4.61%, 08/10/47^(d)		50		51,710
Series 2015-CR23, Class CMD, 3.68%, 05/10/48^(b)(d)		350		350,154
Series 2015-CR25, Class A4, 3.76%, 08/10/48		100		106,643
Series 2015-LC19, Class A4, 3.18%, 02/10/48		59		61,173
Series 2015-LC19, Class D, 2.87%, 02/10/48^(b)		10		9,225
Series 2015-LC21, Class C, 4.30%, 07/10/48^(d)		150		156,490
Series 2016-667M, Class D, 3.18%, 10/10/36^(b)(d)		100		99,187
CSAIL Commercial Mortgage Trust, Series 2015-C2, Class A4, 3.50%, 06/15/57		50		52,274
CSMC Trust^(b):
Series 2017-PFHP, Class A, 2.69%, 12/15/30^(d)		60		59,925
Series 2017-TIME, Class A, 3.65%, 11/13/39		100		104,078
DBGS Mortgage Trust, Series 2019-1735, Class F, 4.19%, 04/10/37^(b)(d)		100		96,595
DBUBS Mortgage Trust^(b):
Series 2017-BRBK, Class A, 3.45%, 10/10/34		140		145,856
Series 2017-BRBK, Class E, 3.53%, 10/10/34^(d)		310		308,412
Series 2017-BRBK, Class F, 3.53%, 10/10/34^(d)		80		78,906
Eleven Madison Mortgage Trust, Series 2015-11MD, Class A, 3.55%, 09/10/35^(b)(d)		100		104,693
Exantas Capital Corp. Ltd.^(b)(d):
Series 2018-RSO6, Class A, 2.57%, 06/15/35		39		38,442
Series 2019-RSO7, Class AS, 3.24%, 04/15/36		160		160,000


SCHEDULE OF INVESTMENTS			29

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Commercial Mortgage-Backed Securities (continued)
GPMT Ltd., Series 2018-FL1, Class A, 2.66%, 11/21/35^(b)(d)		USD 40	$	39,729
GRACE Mortgage Trust, Series 2014-GRCE, Class F, 3.59%, 06/10/28^(b)(d)		330		331,156
GS Mortgage Securities Corp. II, Series 2005- ROCK, Class A, 5.37%, 05/03/32^(b)		100		113,642
GS Mortgage Securities Corp. Trust^(b):
Series 2017-500K, Class D, 3.04%, 07/15/32^(d)		10		9,988
Series 2017-500K, Class E, 3.24%, 07/15/32^(d)		20		19,968
Series 2017-500K, Class F, 3.54%, 07/15/32^(d)		110		110,000
Series 2017-GPTX, Class A, 2.86%, 05/10/34		100		99,707
GS Mortgage Securities Trust:
Series 2015-GC32, Class C, 4.41%, 07/10/48^(d)		30		31,618
Series 2017-GS6, Class A3, 3.43%, 05/10/50		150		158,420
Series 2017-GS7, Class A4, 3.43%, 08/10/50		76		80,429
Series 2017-GS7, Class D, 3.00%, 08/10/50^(b)		20		18,798
HMH Trust, Series 2017-NSS, Class A, 3.06%, 07/05/31^(b)		110		111,184
IMT Trust^(b):
Series 2017-APTS, Class AFX, 3.48%, 06/15/34		100		103,762
Series 2017-APTS, Class EFX, 3.50%, 06/15/34^(d)		100		99,084
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C21, Class A5, 3.77%, 08/15/47		50		52,997
Series 2015-C33, Class D1, 4.12%, 12/15/48^(b)(d)		100		99,050
JPMCC Commercial Mortgage Securities Trust:
Series 2017-JP5, Class D, 4.64%, 03/15/50^(b)(d)		100		103,366
Series 2017-JP7, Class B, 4.05%, 09/15/50		10		10,572
JPMDB Commercial Mortgage Securities Trust, Series 2017-C5, Class D, 4.55%, 03/15/50^(b)^(d)		70		71,152
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2012-CBX, Class A4FL, 3.04%, 06/15/45^(b)(d)		96		96,743
Series 2014-C20, Class A5, 3.80%, 07/15/47		70		74,190
Series 2015-JP1, Class D, 4.24%, 01/15/49^(d)		50		50,022
Series 2015-UES, Class D, 3.62%, 09/05/32^(b)(d)		130		130,318
Series 2015-UES, Class E, 3.62%, 09/05/32^(b)(d)		100		100,045
Series 2016-NINE, Class A, 2.85%, 09/06/38^(b)(d)		150		152,279
Lehman Brothers Small Balance Commercial Mortgage Trust, Series 2007-1A, Class 1A, 2.04%, 03/25/37^(b)(d)		32		31,362
LSTAR Commercial Mortgage Trust, Series 2015-3, Class AS, 3.15%, 04/20/48^(b)(d)		100		101,506
Madison Avenue Trust, Series 2013-650M, Class D, 4.03%, 10/12/32^(b)(d)		101		101,278


Security	Par (000)			Value

Commercial Mortgage-Backed Securities (continued)
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2014-C16, Class A5, 3.89%, 06/15/47		USD 140		$	148,125
Series 2015-C26, Class D, 3.06%, 10/15/48^(b)		26			24,663
Morgan Stanley Capital I Trust:
Series 2007-T27, Class AJ, 5.95%, 06/11/42^(d)		74			78,477
Series 2015-MS1, Class D, 4.03%, 05/15/48^(b)(d)		100			95,689
Series 2017-CLS, Class F, 4.34%, 11/15/34^(b)^(d)		211			211,000
Series 2017-H1, Class D, 2.55%, 06/15/50^(b)		140			120,797
Series 2019-AGLN, Class D, 3.49%, 03/15/34^(b)(d)		150			149,999
Series 2019-AGLN, Class F, 4.34%, 03/15/34^(b)(d)		150			150,657
Natixis Commercial Mortgage Securities Trust, Series 2018-FL1, Class MCR1, 4.12%, 06/15/35^(b)(d)		85			85,156
Olympic Tower Mortgage Trust, Series 2017- OT, Class E, 3.95%, 05/10/39^(b)(d)		190			191,919
PFP Ltd.^(b)(d):
Series 2019-5, Class A, 2.71%, 04/14/36		63			62,994
Series 2019-5, Class AS, 3.16%, 04/14/36		40			40,000
Prima Capital CRE Securitization Ltd., Series 2015-4A, Class C, 4.00%, 08/24/49^(b)(c)		100			102,560
USDC, Series 2018-USDC, Class E, 4.49%, 05/13/38^(b)(d)		50			51,200
Velocity Commercial Capital Loan Trust^(d):
Series 2016-2, Class M4, 7.23%, 10/25/46		100			103,135
Series 2017-2, Class M3, 4.24%, 11/25/47^(b)		144			145,602
Series 2017-2, Class M4, 5.00%, 11/25/47^(b)		72			73,092
Wells Fargo Commercial Mortgage Trust:
Series 2015-C27, Class C, 3.89%, 02/15/48		20			19,772
Series 2015-C31, Class A4, 3.70%, 11/15/48		50			53,337
Series 2015-NXS2, Class A5, 3.77%, 07/15/58^(d)		110			117,515
Series 2015-NXS4, Class A4, 3.72%, 12/15/48		20			21,355
Series 2015-P2, Class A4, 3.81%, 12/15/48		70			75,109
Series 2015-P2, Class D, 3.24%, 12/15/48^(b)		78			69,732
Series 2017-C39, Class D, 4.35%, 09/15/50^(b)(d)		83			83,206
Series 2017-C41, Class D, 2.60%, 11/15/50^(b)(d)		60			52,492
Series 2017-HSDB, Class A, 2.59%, 12/13/31^(b)(d)		151			150,545
Series 2018-C44, Class A5, 4.21%, 05/15/51		770			857,341
WFRBS Commercial Mortgage Trust:
Series 2011-C3, Class A3FL, 2.69%, 03/15/44^(b)(d)		—	^(P)		421
Series 2014-C21, Class A5, 3.68%, 08/15/47		60			63,311

					13,285,232

Interest Only Commercial Mortgage-Backed Securities — 0.2%^(d)
BAMLL Commercial Mortgage Securities Trust, Series 2016-SS1, Class XA, 0.56%, 12/15/35^(b)		15,000			472,050
Banc of America Commercial Mortgage Trust, Series 2017-BNK3, Class XB, 0.63%, 02/15/50		1,000			41,244
BBCMS Trust, Series 2015-SRCH, Class XA, 0.96%, 08/10/35^(b)		1,030			58,648
BB-UBS Trust, Series 2012-SHOW, Class XA, 0.60%, 11/05/36^(b)		3,475			97,912


30		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Interest Only Commercial Mortgage-Backed Securities (continued)
Benchmark Mortgage Trust:
Series 2018-B8, Class XA, 0.67%, 01/15/52		USD 4,991	$	241,804
Series 2019-B9, Class XA, 1.05%, 03/15/52		1,048		82,360
CFCRE Commercial Mortgage Trust, Series 2016-C4, Class XB, 0.73%, 05/10/58		170		7,266
Commercial Mortgage Trust:
Series 2015-3BP, Class XA, 0.06%, 02/10/35^(b)		1,916		9,158
Series 2015-CR25, Class XA, 0.84%, 08/10/48		198		7,624
CSAIL Commercial Mortgage Trust, Series 2017-CX10, Class XB, 0.13%, 11/15/50		1,430		23,011
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C22, Class XA, 0.85%, 09/15/47		1,164		38,361
Series 2014-C23, Class XA, 0.64%, 09/15/47		1,224		30,012
JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Class XC, 0.75%, 12/15/49(^b)		1,800		80,057
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class XC, 0.75%, 08/15/49^(b)		900		38,592
Morgan Stanley Bank of America Merrill Lynch Trust^(b):
Series 2014-C19, Class XF, 1.21%, 12/15/47		130		6,394
Series 2015-C26, Class XD, 1.34%, 10/15/48		120		8,420
Morgan Stanley Capital I Trust:
Series 2016-UBS9, Class XD, 1.61%, 03/15/49^(b)		1,000		88,310
Series 2017-H1, Class XD, 2.20%, 06/15/50^(b)		110		15,353
Series 2019-L2, Class XA, 1.03%, 03/15/52		385		30,332
One Market Plaza Trust^(b):
Series 2017-1MKT, Class XCP, 0.09%, 02/10/32		1,880		5,696
Series 2017-1MKT, Class XNCP, 0.00%, 02/10/32)^(c)		376		4
Wells Fargo Commercial Mortgage Trust, Series 2016-BNK1, Class XD, 1.26%, 08/15/49^(b)		1,000		68,750

				1,451,358

Principal Only Collateralized Mortgage Obligations — 0.0%
Seasoned Credit Risk Transfer Trust, Series 2017-3, Class B, 0.00%, 07/25/56^(b)(l)		117		13,145


Total Non-Agency Mortgage-Backed Securities — 3.7% (Cost: $23,203,358)				23,484,024


	Beneficial Interest (000)

Other Interests — 0.0%^(q)

Capital Markets — 0.0%^(c)(g)(h)
Lehman Brothers Holdings Capital Trust VII		185		—
Lehman Brothers Holdings, Inc.		1,365		—


Total Other Interests — 0.0%				—


	Par (000)

Capital Trusts — 0.3%

Banks — 0.1%
JPMorgan Chase & Co., Series FF, 5.00%^(f)(k)		435		452,400


Security	Par (000)		Value

Capital Markets — 0.1%^(f)(k)
Bank of New York Mellon Corp. (The), Series F, 4.62%		USD 310	$	326,080
State Street Corp.:
Series F, 5.25%		205		210,223
Series H, 5.63%		335		355,522

				891,825

Entertainment — 0.1%
NBCUniversal Enterprise, Inc., 5.25%^(b)(f)		620		640,150


Total Capital Trusts — 0.3% (Cost: $1,920,570)				1,984,375


U.S. Government Sponsored Agency Securities — 49.6%

Collateralized Mortgage Obligations — 0.1%
Federal Home Loan Mortgage Corp. Structured
Agency Credit Risk Debt Notes, Series 2017-DNA3, Class B1, (LIBOR USD 1 Month + 4.45%), 6.24%, 03/25/30^(a)		250		276,482


Commercial Mortgage-Backed Securities — 0.1%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K076, Class A2, 3.90%, 04/25/28		22		24,310
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes, Series KL4F, Class A2AS, 3.68%, 10/25/25^(k)		71		75,230
Federal Home Loan Mortgage Corp. Variable Rate Notes^(k):
Series 2017-K64, Class B, 3.98%, 05/25/50^(b)		20		21,140
Series 2018-K77, Class B, 4.16%, 05/25/51^(b)		20		21,175
Series 2018-K732, Class B, 4.06%, 05/25/25^(b)		100		103,708
Series 2018-SB52, Class A10F, 3.48%, 06/25/28		77		80,761
Series 2018-SB53, Class A10F, 3.66%, 06/25/28		46		48,618
Government National Mortgage Association:
Series 2015-97, Class VA, 2.25%, 12/16/38		32		31,152
Series 2016-158, Class VA, 2.00%, 03/16/35		86		81,447

				487,541

Interest Only Commercial Mortgage-Backed Securities — 0.0%
Government National Mortgage Association Variable Rate Notes:
Series 2013-63, 0.79%, 09/16/51^(k)		577		28,531
Series 2013-191, 0.73%, 11/16/53^(k)		95		2,915
Series 2015-48, 0.69%, 02/16/50^(k)		183		7,422
Series 2015-173, 0.88%, 09/16/55^(k)		214		13,059
Series 2016-26, 0.94%, 02/16/58^(k)		567		37,482
Series 2016-67, 1.14%, 07/16/57^(k)		139		10,203
Series 2016-110,1.03%, 05/16/58^(k)		192		13,680
Series 2016-113, (LIBOR USD 1 Month + 0.00%),1.18%,02/16/58^(a)		264		21,578
Series 2016-125, 0.99%, 12/16/57^(k)		254		17,849
Series 2016-128, 0.95%, 09/16/56^(k)		150		10,769
Series 2016-152, 0.88%, 08/15/58^(k)		495		33,554
Series 2016-162, 0.99%, 09/16/58^(k)		122		9,369

				206,411

Mortgage-Backed Securities — 49.4%
Federal Home Loan Mortgage Corp.:
2.50%, 02/01/24 - 04/01/31		597		606,170
3.00%, 09/01/27 - 02/01/47		4,966		5,112,323


SCHEDULE OF INVESTMENTS			31

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

Mortgage-Backed Securities (continued)
3.50%, 09/01/30 - 01/01/48		USD 8,457	$	8,961,380
4.00%, 08/01/40 - 02/01/47		1,065		1,141,293
4.50%, 02/01/39 - 04/01/49		6,547		7,112,393
5.00%,10/01/41 - 11/01/41		158		173,241
5.50%, 02/01/35 - 06/01/41		186		208,863
Federal National Mortgage Association:
4.00%, 01/01/41		29		30,415
6.00%, 07/01/39		151		170,781
Government National Mortgage Association:
2.50%,1/15/50^(r)		603		605,568
3.00%, 02/15/45 - 12/20/46		5,399		5,576,866
3.00%, 01/15/50^(r)		8,346		8,574,023
3.50%, 01/15/42- 11/20/46		13,609		14,178,405
3.50%, 01/15/50 - 02/15/50^(r)		6,187		6,377,422
4.00%, 04/20/39- 12/20/47		2,118		2,222,932
4.00%, 01/15/50 - 02/15/50^(r)		9,743		10,085,409
4.50%, 12/20/39 - 03/20/49		2,486		2,622,311
4.50%, 01/15/50^(r)		2,242		2,343,941
5.00%, 12/15/38-07/20/44		167		185,572
5.00%, 01/15/50^(r)		2,112		2,223,540
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32		558		554,715
2.50%, 09/01/27 - 02/01/33		3,002		3,046,137
2.50%, 01/25/35 - 01/25/50^(r)		6,440		6,380,030
3.00%, 04/01/28 - 03/01/47		9,210		9,504,223
3.00%, 01/25/35 - 01/25/50^(r)		23,067		23,433,849
3.50%, 03/01/29 - 01/01/48		11,978		12,697,340
3.50%, 01/25/35 - 02/25/50^(r)		31,304		32,204,171
4.00%, 08/01/31 - 08/01/48		8,797		9,447,364
4.00%, 01/25/50 - 02/25/50^(r)		93,199		96,944,872
4.50%, 02/01/25 - 05/01/49		16,120		17,632,907
4.50%, 01/25/50 - 02/25/50^(r)		16,166		17,023,087
5.00%, 02/01/35 - 06/01/45		1,075		1,180,724
5.00%, 01/25/50^(r)		1,077		1,151,380
5.50%, 02/01/35 - 03/01/40		548		612,526
5.50%, 01/25/50^(r)		987		1,062,876
6.00%, 04/01/35 - 06/01/41		305		350,157
6.00%, 01/25/50^(r)		172		189,523
6.50%, 05/01/40		122		138,590

				312,067,319


Total U.S. Government Sponsored Agency Securities - 49.6% (Cost: $309,683,938)				313,037,753


U.S. Treasury Obligations — 24.3%
U.S. Treasury Bonds:
4.25%, 05/15/39		431		568,078
4.50%, 08/15/39		431		585,840
4.38%, 11/15/39		431		577,725
3.13%, 02/15/43		1,623		1,844,451
2.88%, 05/15/43 - 05/15/49		3,287		3,602,260
3.63%, 08/15/43		1,623		1,994,388
3.75%, 11/15/43		1,623		2,033,758
3.00%, 02/15/48		1,559		1,757,042
2.25%, 08/15/49		3,701		3,600,379
2.38%, 11/15/49		3,385		3,383,281
U.S. Treasury Inflation Linked Notes:
0.50%, 04/15/24^(s)		50,117		50,927,543
0.13%, 10/15/24		4,947		4,975,468
0.25%, 01/15/25		8,959		9,038,816
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25		10,178		10,247,600
2.50%, 12/31/20		4,699		4,738,281
1.13%, 07/31/21		7,049		6,996,408
1.75%, 07/31/21 - 11/15/29		15,821		15,871,938


Security	Par (000)		Value

U.S. Treasury Obligations (continued)
1.50%, 01/31/22 - 08/15/26	USD	10,796	$	10,698,982
2.13%, 12/31/22 - 05/15/25		9,722		9,901,916
2.75%, 05/31/23		3,139		3,254,751
2.25%, 08/15/27		3,139		3,228,633
2.88%, 08/15/28		942		1,015,962
3.13%, 11/15/28		942		1,036,457
1.63%, 08/15/29		1,408		1,372,745


Total U.S. Treasury Obligations — 24.3% (Cost: $151,212,412)				153,252,702


Total Long-Term Investments — 129.9% (Cost: $804,210,188)				820,102,090


Short-Term Securities — 2.8%

Foreign Government Obligations — 2.1%

Egypt — 0.1%
Arab Republic of Egypt Treasury Bills^(t):
16.60%, 05/05/20	EGP	2,575		152,514
15.75%, 07/28/20		5,700		327,263

				479,777


Japan — 2.0%
Japan Treasury Bills^(t):
(0.14)%, 03/09/20	JPY	685,050		6,306,606
(0.11)%, 03/16/20		681,650		6,275,460

				12,582,066


Nigeria — 0.0%
Nigeria OMO Bills^(t):
14.60%, 01/16/20	NGN	11,370		31,200
11.09%, 01/30/20		19,898		53,775
13.47%, 05/28/20		11,370		29,737
12.34%, 07/30/20		5,685		14,741

				129,453


Total Foreign Government Obligations — 2.1% (Cost: $13,173,251)				13,191,296


	Shares

Money Market Funds — 0.7%^(u)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.51%*		4,269,478		4,269,478
JPMorgan U.S. Treasury Plus Money Market
Fund, Agency Class, 1.41%		10,706		10,706


Total Money Market Funds — 0.7% (Cost: $4,280,184)				4,280,184


Total Short-Term Securities — 2.8% (Cost: $17,453,435)				17,471,480


Total Options Purchased — 0.0% (Cost: $470,181)				340,728


Total Investments Before Options Written and TBA Sale Commitments — 132.7% (Cost: $822,133,804)				837,914,298


Total Options Written — (0.0)% (Premium Received — $217,339)				(59,776	)


32		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

(Percentages shown are based on Net Assets)


Security	Par (000)		Value

TBA Sale Commitments — (3.0)%^(r)

Mortgage-Backed Securities — (3.0)%
Government National Mortgage Association:
3.50%, 01/15/50	USD	2,967	$	(3,058,162	)
4.00%, 01/15/50		2,120		(2,194,200	)
4.50%, 01/15/50		100		(106,344	)
Uniform Mortgage-Backed Securities:
4.00%, 01/25/35 - 01/25/50		5,066		(5,270,208	)


Security	Par (000)		Value

Mortgage-Backed Securities (continued)
3.00%, 01/25/50	USD	2,658	$	(2,695,794)
3.50%, 01/25/50		5,193		(5,341,913)
4.50%, 01/25/50		190		(200,042)


Total TBA Sale Commitments — (3.0)% (Proceeds: $18,856,953)				(18,866,663)


Total Investments Net of Options Written and TBA Sale Commitments — 129.7% (Cost: $803,059,512)				818,987,859

Liabilities in Excess of Other Assets — (29.7)%				(187,655,767)


Net Assets — 100.0%			$	631,332,092

^(a)	Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(b)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(c)	Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d)	Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

^(e)	Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(f)	Perpetual security with no stated maturity date.

^(g)	Issuer filed for bankruptcy and/or is in default.

^(h)	Non-income producing security.

⁽ⁱ⁾	Convertible security.

^(j)	Zero-coupon bond.

^(k)	Variable rate security. Rate shown is the rate in effect as of period end.

^(l)	Represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.

^(m)	Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand.

⁽ⁿ⁾	U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

^(o)	When-issued security.

^(p)	Amount is less than 500.

^(q)	Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

^(r)	Represents or includes a TBA transaction.

^(s)	All or a portion of the security has been pledged as collateral in connection with outstanding reverse repurchase agreements.

^(t)	Rates are discount rates or a range of discount rates as of period end.

^(u)	Annualized 7-day yield as of period end.

*	During the year ended December 31, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:


Affiliated Persons and/or Related Parties	Shares Held at 12/31/18		Shares Purchased		Shares Sold			Shares Held at 12/31/19		Value at 12/31/19		Income		Net Realized Gain (Loss)^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class^(b)		22,894,841		—		(18,625,363	)		4,269,478	$	4,269,478	$	416,081	$	4	$	—
BlackRock Allocation Target Shares- BATS Series A		—		2,726,552		—			2,726,552		27,401,851		478,868		—		(98,149)

										$	31,671,329	$	894,949	$	4	$	(98,149)

^(a)	Includes net capital gain distributions, if applicable.

^(b)	Represents net shares purchased (sold).


SCHEDULE OF INVESTMENTS			33

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

Reverse Repurchase Agreements

Counterparty

Interest
Rate

Trade
Date

Maturity
Date

Face Value

Face Value
Including
Accrued Interest

Type of Non-Cash
Underlying Collateral

Remaining Contractual
Maturity of the Agreements

J.P. Morgan Securities LLC

1.75

12/30/19

01/02/20

14,525,000

14,525,706

U.S. Treasury Obligations

Overnight

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-BTP		27		03/06/20	$	4,315	$	(11,098)
Euro-Schatz		230		03/06/20		28,870		(25,684)
U.S. Treasury 10 Year Ultra Note		81		03/20/20		11,397		(131,360)
U.S. Treasury Ultra Bond		140		03/20/20		25,432		(759,488)
U.S. Treasury 2 Year Note		347		03/31/20		74,779		(50,060)

								(977,690)

Short Contracts
Euro-Bund		21		03/06/20		4,016		41,085
Euro-Buxl		3		03/06/20		668		14,634
U.S. Treasury 10 Year Note		460		03/20/20		59,074		462,249
U.S. Treasury Long Bond		25		03/20/20		3,898		24,355
Long Gilt		20		03/27/20		3,481		13,991
U.S. Treasury 5 Year Note		13		03/31/20		1,542		(4,695)

								551,619

							$	(426,071)

Forward Foreign Currency Exchange Contracts


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
BRL	1,679,550	USD	402,000	Citibank NA		01/03/20	$	15,518
BRL	2,326,489	USD	566,000	Deutsche Bank AG		01/03/20		12,340
MXN	2,439,337	USD	125,000	Citibank NA		01/03/20		4,014
MXN	2,446,969	USD	125,000	HSBC Bank plc		01/03/20		4,418
ZAR	3,530,943	USD	251,000	JPMorgan Chase Bank NA		01/06/20		1,007
CNY	1,327,111	USD	188,000	Bank of America NA		01/08/20		2,631
EUR	114,000	USD	126,371	HSBC Bank plc		01/08/20		1,542
KRW	162,723,650	USD	138,500	BNP Paribas SA		01/08/20		2,331
KRW	111,813,000	USD	94,000	Deutsche Bank AG		01/08/20		2,770
KRW	148,425,000	USD	125,000	JPMorgan Chase Bank NA		01/08/20		3,457
MXN	1,040,199	USD	53,000	Morgan Stanley & Co. International plc		01/08/20		1,978
RUB	8,060,812	USD	125,000	BNP Paribas SA		01/09/20		4,780
RUB	2,122,527	USD	33,000	Citibank NA		01/09/20		1,173
USD	6,311,768	JPY	685,256,000	Citibank NA		01/09/20		2,809
USD	6,294,986	JPY	681,854,000	UBS AG		01/14/20		15,576
AUD	379,000	JPY	28,641,014	Morgan Stanley & Co. International plc		01/17/20		2,251
COP	2,262,978,030	USD	655,208	JPMorgan Chase Bank NA		01/22/20		32,702
COP	799,788,920	USD	231,020	Natwest Markets plc		01/22/20		12,104
RUB	10,667,871	USD	165,221	HSBC Bank plc		01/22/20		6,245
RUB	15,792,129	USD	245,200	JPMorgan Chase Bank NA		01/22/20		8,628
MXN	2,397,049	USD	126,000	Bank of America NA		01/23/20		387
BRL	2,708,656	USD	666,000	Credit Suisse International		02/04/20		6,695
BRL	637,169	USD	157,000	Morgan Stanley & Co. International plc		02/04/20		1,241
JPY	11,083,177	USD	102,000	Morgan Stanley & Co. International plc		02/05/20		194
MXN	12,990,000	USD	670,822	Bank of America NA		02/05/20		12,666
MXN	3,962,000	USD	202,123	HSBC Bank plc		02/05/20		6,344


34		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
JPY	34,123,228	USD	313,000	UBS AG		02/06/20	$	1,656
RUB	19,878,075	USD	315,000	Bank of America NA		02/18/20		3,446
USD	1,514,264	EUR	1,160,000	Deutsche Bank AG		02/25/20		208,779
USD	1,543,322	JPY	154,610,000	HSBC Bank plc		03/16/20		114,439
BRL	6,343,620	USD	1,549,000	Bank of America NA		03/18/20		23,082
BRL	6,482,530	USD	1,570,000	Deutsche Bank AG		03/18/20		36,506
MXN	10,832,080	USD	560,000	BNP Paribas SA		03/18/20		6,524
MXN	41,467,892	USD	2,125,000	Citibank NA		03/18/20		43,794
MXN	8,798,335	USD	455,000	Deutsche Bank AG		03/18/20		5,158
RUB	200,502,910	USD	3,129,000	Bank of America NA		03/18/20		72,142

								681,327

USD	302,000	BRL	1,286,580	Citibank NA		01/03/20		(17,830)
USD	666,000	BRL	2,705,292	Credit Suisse International		01/03/20		(6,506)
USD	126,000	MXN	2,412,522	BNP Paribas SA		01/03/20		(1,596)
USD	124,000	MXN	2,367,904	Citibank NA		01/03/20		(1,236)
JPY	10,193,031	USD	94,000	Bank of America NA		01/06/20		(172)
JPY	13,546,317	USD	125,000	Morgan Stanley & Co. International plc		01/06/20		(305)
USD	219,000	JPY	23,862,104	Morgan Stanley & Co. International plc		01/06/20		(652)
USD	126,000	ZAR	1,819,886	Bank of America NA		01/06/20		(3,887)
USD	125,000	ZAR	1,842,375	BNP Paribas SA		01/06/20		(6,492)
USD	188,000	CNY	1,324,028	Bank of America NA		01/08/20		(2,188)
USD	127,022	EUR	114,000	Bank of America NA		01/08/20		(891)
USD	357,500	KRW	425,289,150	Deutsche Bank AG		01/08/20		(10,573)
USD	53,000	MXN	1,041,964	Goldman Sachs International		01/08/20		(2,072)
USD	158,000	RUB	9,927,140	Citibank NA		01/09/20		(1,828)
JPY	18,752,805	AUD	250,140	Morgan Stanley & Co. International plc		01/17/20		(2,870)
USD	126,000	KRW	146,550,600	BNP Paribas SA		01/21/20		(883)
USD	883,609	COP	3,062,766,950	Credit Suisse International		01/22/20		(47,428)
USD	741,227	RUB	48,000,001	Morgan Stanley & Co. International plc		01/22/20		(30,281)
COP	412,524,000	USD	126,000	JPMorgan Chase Bank NA		01/24/20		(607)
USD	126,000	COP	419,643,000	Citibank NA		01/24/20		(1,557)
USD	100,449	AUD	148,000	State Street Bank and Trust Co.		02/05/20		(3,498)
USD	240,947	EUR	216,000	Goldman Sachs International		02/05/20		(1,850)
USD	275,500	EUR	245,148	HSBC Bank plc		02/05/20		(62)
USD	104,434	EUR	94,000	Morgan Stanley & Co. International plc		02/05/20		(1,228)
USD	22,109	EUR	20,000	Natwest Markets plc		02/05/20		(373)
USD	878,019	IDR	12,445,917,844	Barclays Bank plc		02/05/20		(19,182)
USD	645,833	IDR	9,143,464,536	BNP Paribas SA		02/05/20		(13,301)
USD	438,545	IDR	6,222,957,844	Citibank NA		02/05/20		(10,055)
USD	144,559	IDR	2,051,725,000	Deutsche Bank AG		02/05/20		(3,346)
USD	3,232,723	MXN	62,557,067	HSBC Bank plc		02/05/20		(58,812)
USD	1,538,984	RUB	98,899,738	JPMorgan Chase Bank NA		02/05/20		(47,806)
USD	251,000	ZAR	3,545,224	JPMorgan Chase Bank NA		02/05/20		(987)
EUR	1,160,000	USD	1,429,520	JPMorgan Chase Bank NA		02/25/20		(124,033)
JPY	154,610,000	USD	1,432,635	JPMorgan Chase Bank NA		03/16/20		(3,752)
USD	1,183,000	CAD	1,537,545	Bank of America NA		03/18/20		(1,362)
USD	1,183,000	CHF	1,138,845	Morgan Stanley & Co. International plc		03/18/20		(48)
USD	111,922	EUR	99,463	UBS AG		11/27/20		(1,977)

								(431,526)

Net Unrealized Appreciation							$	249,801

Exchange-Traded Options Purchased

Description

Number of
Contracts

Expiration
Date

Exercise
Price

Notional
Amount (000)

Value

Call

90-day Eurodollar March 2020 Futures

258

03/13/20

USD

99.00

USD

64,500

6,450


SCHEDULE OF INVESTMENTS			35

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

Exchange-Traded Options Purchased (continued)

Description

Number of
Contracts

Expiration
Date

Exercise Price

Notional
Amount (000)

Value

90-day Eurodollar March 2020 Futures

516

03/13/20

USD 99.13

USD

129,000

$ 9,673

$ 16,123

OTC Barrier Options Purchased

Description

Type of
Option

Counterparty

Expiration
Date

Exercise
Price

Barrier
Price/Range

Notional
Amount (000)

Value

Put

USD Currency

One-Touch

Bank of America NA

01/06/20

TRY

5.60

TRY

5.60

USD

—

USD Currency

One-Touch

BNP Paribas SA

01/06/20

TRY

5.60

TRY

5.60

USD

—

USD Currency

One-Touch

BNP Paribas SA

01/10/20

TRY

5.67

TRY

5.67

USD

100

USD Currency

One-Touch

BNP Paribas SA

01/10/20

TRY

5.67

TRY

5.67

USD

163

USD Currency

One-Touch

HSBC Bank plc

01/23/20

CNH

6.90

CNH

6.90

USD

3,716

EUR Currency

One-Touch

Deutsche Bank AG

02/06/20

NOK

9.85

NOK

9.85

EUR

4,650

USD Currency

One-Touch

Deutsche Bank AG

02/06/20

BRL

3.98

BRL

3.98

USD

8,202

USD Currency

One-Touch

Citibank NA

02/06/20

BRL

3.98

BRL

3.98

USD

10,066

USD Currency

One-Touch

Bank of America NA

02/07/20

RUB

62.10

RUB

62.10

USD

9,829

USD Currency

One-Touch

Bank of America NA

02/14/20

RUB

61.10

RUB

61.10

USD

5,588

42,314

OTC Currency Options Purchased

Description

Counterparty

Expiration
Date

Exercise
Price

Notional

Amount (000)

Value

Call

USD Currency

Deutsche Bank AG

01/09/20

ZAR

15.30

USD

157

—

USD Currency

Bank of America NA

01/21/20

TWD

30.60

USD

313

USD Currency

Bank of America NA

03/24/20

ZAR

15.50

USD

495

2,238

USD Currency

Citibank NA

03/24/20

ZAR

17.00

USD

247

120

USD Currency

Deutsche Bank AG

03/31/20

ZAR

14.65

USD

235

3,521

USD Currency

Citibank NA

04/08/20

ZAR

15.60

USD

470

2,566

8,466

Put

USD Currency

Deutsche Bank AG

01/14/20

KRW

1,178.00

USD

314

6,511

USD Currency

Deutsche Bank AG

01/17/20

BRL

3.96

USD

188

386

USD Currency

Morgan Stanley & Co. International plc

01/17/20

BRL

4.10

USD

250

5,114

USD Currency

Citibank NA

02/06/20

BRL

4.14

USD

299

9,577

USD Currency

Credit Suisse International

02/06/20

BRL

4.18

USD

252

10,199

USD Currency

Deutsche Bank AG

02/14/20

BRL

4.10

USD

471

11,756

USD Currency

Citibank NA

02/19/20

BRL

4.16

USD

156

5,829

USD Currency

Bank of America NA

03/06/20

RUB

64.30

USD

299

9,857

USD Currency

Citibank NA

03/06/20

BRL

4.14

USD

299

10,304

USD Currency

Deutsche Bank AG

04/02/20

JPY

107.00

USD

940

7,131

USD Currency

Citibank NA

05/01/20

JPY

107.00

USD

313

3,140

79,804

88,270


36		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration
Date

Exercise
Rate

Notional
Amount (000)

Value

Call

10-Year lnterest Rate Swap

3 month LIBOR

Quarterly

1.71%

Semi-Annual

Citibank NA

06/03/20

1.71

USD

4,565

36,736

Put

10-Year lnterest Rate Swap

2.00%

Semi-Annual

3 month LIBOR

Quarterly

Morgan Stanley & Co. International plc

01/29/20

2.00

USD

6,744

21,111

10-Year lnterest Rate Swap

2.30%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

03/30/20

2.30

USD

1,967

3,521

10-Year lnterest Rate Swap

2.30%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

03/30/20

2.30

USD

5,901

10,562

10-Year lnterest Rate Swap

1.71%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

06/03/20

1.71

USD

4,565

122,091

157,285

194,021

Exchange-Traded Options Written


Description	Number of Contracts	Expiration Date			Exercise Price			Notional Amount (000)		Value
Call
90-day Eurodollar March 2020 Futures	258		03/13/20	USD		98.88	USD		64,500	$	(8,063)
90-day Eurodollar March 2020 Futures	516		03/13/20	USD		99.00	USD		129,000		(9,674)

										$	(17,737)

OTC Currency Options Written


Description	Counterparty	Expiration Date		Exercise Price			Notional Amount (000)			Value
Call
USD Currency	Citibank NA		01/09/20		ZAR	15.30		USD	157	$	—
USD Currency	Morgan Stanley & Co. International plc		01/17/20		BRL	4.35		USD	94		(1	)
USD Currency	Citibank NA		01/20/20		RUB	62.60		USD	220		(949	)
USD Currency	Citibank NA		02/05/20		JPY	109.00		USD	94		(401	)
USD Currency	Credit Suisse International		02/06/20		BRL	4.35		USD	126		(73	)
EUR Currency	Bank of America NA		02/14/20		CNH	7.85		EUR	226		(1,786	)
USD Currency	Citibank NA		02/19/20		BRL	4.35		USD	94		(116	)
USD Currency	Bank of America NA		03/24/20		ZAR	17.00		USD	495		(239	)
USD Currency	Deutsche Bank AG		03/31/20		ZAR	15.35		USD	470		(3,026	)
USD Currency	Citibank NA		04/08/20		ZAR	17.00		USD	470		(429	)

											(7,020	)

Put
USD Currency	Citibank NA		01/09/20		ZAR	14.45		USD	157		(4,956	)
USD Currency	Morgan Stanley & Co. International plc		01/17/20		BRL	3.99		USD	188		(746	)
USD Currency	Citibank NA		02/05/20		JPY	108.00		USD	94		(479	)
USD Currency	Credit Suisse International		02/06/20		BRL	4.06		USD	378		(6,581	)
USD Currency	Citibank NA		02/06/20		BRL	3.98		USD	449		(3,355	)
USD Currency	Deutsche Bank AG		02/14/20		BRL	3.98		USD	628		(5,232	)
USD Currency	Bank of America NA		03/06/20		RUB	62.50		USD	448		(5,754	)
USD Currency	Citibank NA		03/06/20		BRL	3.98		USD	449		(4,897	)


SCHEDULE OF INVESTMENTS			37

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

OTC Currency Options Written (continued)


Description	Counterparty	Expiration Date		Exercise Price				Notional Amount (000)		Value
USD Currency	Citibank NA		05/01/20		JPY	104.00	USD		313	$	(1,323	)

											(33,323	)

										$	(40,343	)

OTC Interest Rate Swaptions Written

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration
Date

Exercise
Rate

Notional
Amount (000)

Value

Put

2-Year Interest Rate Swap

1.86%

Semi-Annual

3 month LIBOR

Quarterly

Morgan Stanley & Co.
International plc

01/29/20

1.86

USD

33,720

(1,696

)

Centrally Cleared Credit Default Swaps — Buy Protection


Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Termination Date		Notional Amount (000)			Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
CDX.NA.IG.33.V1		1.00	%		Quarterly		12/20/24		USD	13,669	$	(358,936)	$	(285,769)	$	(73,167)

Centrally Cleared Interest Rate Swaps


Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Effective Date			Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
1.62%	At Termination	1 day REPO_CORRA	At Termination		03/04/20	^(a)		04/15/20	CAD	359,260	$	34,688	$	—	$	34,688
1 day REPO_CORRA	At Termination	1.59%	At Termination		04/15/20	^(a)		06/03/20	CAD	309,350		(43,924)		—		(43,924)
28 day MXIBTIIE	Monthly	6.88%	Monthly		N/A			12/15/20	MXN	23,154		(2,000)		—		(2,000)
28 day MXIBTIIE	Monthly	6.88%	Monthly		N/A			12/16/20	MXN	44,796		(3,905)		—		(3,905)
6.86%	Monthly	28 day MXIBTIIE	Monthly		07/24/20	^(a)		07/23/21	MXN	5,597		(1,056)		—		(1,056)
6.90%	Monthly	28 day MXIBTIIE	Monthly		07/27/20	^(a)		07/26/21	MXN	7,812		(1,645)		—		(1,645)
6.78%	Monthly	28 day MXIBTIIE	Monthly		08/07/20	^(a)		08/06/21	MXN	24,720		(3,911)		—		(3,911)
3 month BA	Semi-Annual	1.94%	Semi-Annual		N/A			12/06/21	CAD	11,840		(7,829)		—		(7,829)
28 day MXIBTIIE	Monthly	6.52%	Monthly		N/A			12/14/21	MXN	35,148		(6,540)		—		(6,540)
28 day MXIBTIIE	Monthly	6.51%	Monthly		N/A			12/15/21	MXN	29,946		(5,779)		—		(5,779)
3 month BA	Semi-Annual	2.02%	Semi-Annual		N/A			12/17/21	CAD	12,165		5,278		—		5,278
7.23%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/18/22	MXN	6,068		(4,602)		—		(4,602)
7.23%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/19/22	MXN	3,034		(2,306)		—		(2,306)
7.22%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/20/22	MXN	1,167		(875)		—		(875)
7.21%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/25/22	MXN	1,633		(1,216)		—		(1,216)
7.20%	Monthly	28 day MXIBTIIE	Monthly		N/A			08/03/22	MXN	7,566		(5,691)		—		(5,691)
28 day MXIBTIIE	Monthly	7.00%	Monthly		N/A			08/11/22	MXN	14,122		6,727		—		6,727
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	3,855		(2,630)		—		(2,630)
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	5,081		(3,430)		—		(3,430)
28 day MXIBTIIE	Monthly	6.73%	Monthly		N/A			08/09/24	MXN	4,769		1,232		—		1,232
28 day MXIBTIIE	Monthly	6.67%	Monthly		N/A			08/12/24	MXN	10,494		1,369		—		1,369
28 day MXIBTIIE	Monthly	6.72%	Monthly		N/A			08/13/24	MXN	9,029		2,074		—		2,074
28 day MXIBTIIE	Monthly	6.59%	Monthly		N/A			11/08/24	MXN	13,689		(787)		—		(787)
28 day MXIBTIIE	Monthly	6.32%	Monthly		N/A			07/17/25	MXN	1,733		(1,494)		—		(1,494)
3 month LIBOR	Quarterly	2.13%	Semi-Annual		N/A			08/25/25	USD	60		1,532		—		1,532
2.27%	Semi-Annual	3 month LIBOR	Quarterly		N/A			09/11/25	USD	91		(3,068)		—		(3,068)


38		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

Centrally Cleared Interest Rate Swaps (continued)


Paid by the Fund		Received by the Fund				Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency	Effective Date		Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
2.91%	Semi-Annual	3 month LIBOR	Quarterly		N/A		08/23/26	USD	125	$	(9,898)	$	—	$	(9,898	)
3.16%	Semi-Annual	3 month LIBOR	Quarterly		N/A		10/03/28	USD	152		(16,345)		—		(16,345	)

										$	(76,031)	$	—	$	(76,031	)

^(a)

Forward Swap.

OTC Credit Default Swaps — Buy Protection


Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/20	USD	135	$	(583	) $		115		$	(698	)
United Mexican States		1.00	%		Quarterly	Bank of America NA		09/20/20	USD	135		(840	)		249			(1,089	)
Federative Republic of Brazil		1.00	%		Quarterly	Barclays Bank plc		12/20/23	USD	142		(1,426	)		4,989			(6,415	)
Federative Republic of Brazil		1.00	%		Quarterly	Citibank NA		12/20/24	USD	1,491		(1,124	)		24,624			(25,748	)
Federative Republic of Brazil		1.00	%		Quarterly	Citibank NA		12/20/24	USD	47		(36	)		776			(812	)
Federative Republic of Brazil		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	982		(741	)		17,725			(18,466	)
Federative Republic of Brazil		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	155		(117	)		2,796			(2,913	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	220		(6,156	)		(5,153	)		(1,003	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	110		(3,079	)		(2,643	)		(436	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	111		(3,106	)		(2,473	)		(633	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	120		(3,358	)		(2,616	)		(742	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	111		(3,101	)		(2,690	)		(411	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	152		(4,242	)		(3,384	)		(858	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	222		(6,202	)		(5,379	)		(823	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	111		(3,106	)		(2,744	)		(362	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	203		(5,681	)		(4,910	)		(771	)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24	USD	110		(3,079	)		(2,613	)		(466	)
Republic of Colombia		1.00	%		Quarterly	Citibank NA		12/20/24	USD	671		(8,932	)		(2,423	)		(6,509	)
Republic of Colombia		1.00	%		Quarterly	Citibank NA		12/20/24	USD	46		(612	)		(166	)		(446	)
Republic of Colombia		1.00	%		Quarterly	Morgan Stanley & Co. International plc		12/20/24	USD	360		(4,792	)		(1,364	)		(3,428	)
Republic of Colombia		1.00	%		Quarterly	Morgan Stanley & Co. International plc		12/20/24	USD	20		(267	)		(76	)		(191	)
Republic of South Africa		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	731		20,948			28,071			(7,123	)
Republic of the Philippines		1.00	%		Quarterly	Citibank NA		12/20/24	USD	1,046		(33,438	)		(26,277	)		(7,161	)
Republic of Turkey		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	508		40,655			62,803			(22,148	)
State of Qatar		1.00	%		Quarterly	JPMorgan Chase Bank NA		12/20/24	USD	172		(5,289	)		(4,251	)		(1,038	)
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	118		(1,246	)		(1,222	)		(24	)
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	236		(2,493	)		(2,333	)		(160	)
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	118		(1,246	)		(1,222	)		(24	)
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	118		(1,246	)		(1,194	)		(52	)
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	118		(1,246	)		(1,278	)		32
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	118		(1,246	)		(1,250	)		4
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	118		(1,246	)		(1,166	)		(80	)
United Mexican States		1.00	%		Quarterly	Barclays Bank plc		12/20/24	USD	186		(1,965	)		(1,839	)		(126	)
United Mexican States		1.00	%		Quarterly	BNP Paribas SA		12/20/24	USD	118		(1,246	)		(1,222	)		(24	)
United Mexican States		1.00	%		Quarterly	BNP Paribas SA		12/20/24	USD	118		(1,246	)		(1,250	)		4
United Mexican States		1.00	%		Quarterly	Citibank NA		12/20/24	USD	1,709		(18,051	)		12,830			(30,881	)
United Mexican States		1.00	%		Quarterly	Citibank NA		12/20/24	USD	277		(2,926	)		2,080			(5,006	)
United Mexican States		1.00	%		Quarterly	Citibank NA		12/20/24	USD	1,000		(10,563	)		6,035			(16,598	)
United Mexican States		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	149		(1,574	)		(1,543	)		(31	)
United Mexican States		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	213		(2,250	)		(2,509	)		259
United Mexican States		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	107		(1,131	)		(1,260	)		129
United Mexican States		1.00	%		Quarterly	Goldman Sachs International		12/20/24	USD	128		(1,352	)		(1,447	)		95
United Mexican States		1.00	%		Quarterly	Morgan Stanley & Co. International plc		12/20/24	USD	126		(1,331	)		(1,246	)		(85	)
CMBX.NA.9.AAA-		0.50	%		Monthly	Credit Suisse International		09/17/58	USD	150		(1,960	)		1,731			(3,691	)
CMBX.NA.9.AAA-		0.50	%		Monthly	Deutsche Bank AG		09/17/58	USD	120		(1,568	)		1,401			(2,969	)
CMBX.NA.9.AAA-		0.50	%		Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	100		(1,306	)		1,154			(2,460	)


SCHEDULE OF INVESTMENTS			39

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

OTC Credit Default Swaps — Buy Protection (continued)


Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CMBX.NA.9.AAA-		0.50	%		Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	90	$	(1,176	)	$	1,040		$	(2,216	)
CMBX.NA.9.AAA-		0.50	%		Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	230		(3,005	)		2,860			(5,865	)
CMBX.NA.9.BBB-		3.00	%		Monthly	Morgan Stanley & Co. International plc		09/17/58	USD	8		43			447			(404	)
CMBX.NA.6.AAA-		0.50	%		Monthly	Deutsche Bank AG		05/11/63	USD	188		(1,607	)		(141	)		(1,466	)
CMBX.NA.6.AAA-		0.50	%		Monthly	Deutsche Bank AG		05/11/63	USD	80		(681	)		(12	)		(669	)
CMBX.NA.6.BBB-		3.00	%		Monthly	JPMorgan Securities LLC		05/11/63	USD	30		1,518			2,780			(1,262	)

											$	(101,050	)	$	83,210		$	(184,260	)

OTC Credit Default Swaps — Sell Protection


Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency		Counterparty	Termination Date		Credit Rating^(a)	Notional Amount (000)^(b)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly	Bank of America NA		06/20/20	BBB+	USD	135	$	583		$	(133	)	$	716
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		09/20/20	BBB+	USD	135		840			(218	)		1,058
Republic of Turkey		1.00	%		Quarterly	Goldman Sachs International		12/20/24	B+	USD	127		(10,164	)		(15,701	)		5,537
CMBX.NA.3.AM		0.50	%		Monthly	Credit Suisse International		12/13/49	NR	USD	—		—			(5	)		5
CMBX.NA.9.BBB-		3.00	%		Monthly	Deutsche Bank AG		09/17/58	NR	USD	29		(156	)		(3,378	)		3,222
CMBX.NA.10.A		2.00	%		Monthly	Deutsche Bank AG		11/17/59	A	USD	120		2,186			(5,014	)		7,200
CMBX.NA.10.A		2.00	%		Monthly	Deutsche Bank AG		11/17/59	A	USD	60		1,093			(2,553	)		3,646
CMBX.NA.10.BBB-		3.00	%		Monthly	JPMorgan Securities LLC		11/17/59	BBB-	USD	10		(20	)		(829	)		809
CMBX.NA.6.BBB-		3.00	%		Monthly	Credit Suisse International		05/11/63	BBB	USD	30		(1,518	)		(2,298	)		780

												$	(7,156	)	$	(30,129	)	$	22,973

^(a)

Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)

The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

OTC Interest Rate Swaps


Paid by the Fund		Received by the Fund			Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency	Counterparty	Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
4.45%	At Termination	1 day BZDIOVER	At Termination	JPMorgan Chase Bank NA		01/04/21	BRL	8,436	$	3,512	$	—	$	3,512
4.46%	At Termination	1 day BZDIOVER	At Termination	Citibank NA		01/04/21	BRL	5,656		2,191		—		2,191
4.49%	At Termination	1 day BZDIOVER	At Termination	Citibank NA		01/04/21	BRL	8,299		2,612		—		2,612
3.27%	Semi-Annual	3 month LIBOR	Quarterly	Deutsche Bank AG		05/16/21	USD	470		(10,617)		—		(10,617)
1 day BZDIOVER	At Termination	5.32%	At Termination	JPMorgan Chase Bank NA		01/03/22	BRL	6,564		2,566		—		2,566
1 day BZDIOVER	At Termination	6.35%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL	4,521		25,102		—		25,102
1 day BZDIOVER	At Termination	8.27%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL	2,627		64,813		—		64,813
1 day BZDIOVER	At Termination	5.98%	At Termination	JPMorgan Chase Bank NA		01/02/25	BRL	2,684		(8,897)		—		(8,897)
1 day BZDIOVER	At Termination	5.99%	At Termination	Citibank NA		01/02/25	BRL	1,899		(5,931)		—		(5,931)


40		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

OTC Interest Rate Swaps (continued)


Paid by the Fund		Received by the Fund				Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate		Frequency	Counterparty	Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
1 day BZDIOVER	At Termination		6.03%	At Termination	JPMorgan Chase Bank NA		01/02/25	BRL	1,899	$	(5,092)	$	—	$	(5,092)
1 day BZDIOVER	At Termination		6.05%	At Termination	Citibank NA		01/02/25	BRL	1,863		(4,523)		—		(4,523)
1 day BZDIOVER	At Termination		6.26%	At Termination	Citibank NA		01/02/25	BRL	2,836		(120)		—		(120)
5.73%	Monthly		28 day MXIBTIIE	Monthly	Bank of America NA		01/03/25	MXN	672		1,405		—		1,405
28 day MXIBTIIE	Monthly		6.43%	Monthly	Bank of America NA		06/06/25	MXN	541		(290)		—		(290)
28 day MXIBTIIE	Monthly		6.33%	Monthly	Citibank NA		06/09/25	MXN	271		(208)		—		(208)
28 day MXIBTIIE	Monthly		6.33%	Monthly	Citibank NA		07/17/25	MXN	864		(734)		—		(734)
6.31%	Monthly		28 day MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN	3,395		3,135		—		3,135
28 day MXIBTIIE	Monthly		6.27%	Monthly	Bank of America NA		12/05/25	MXN	122		(134)		^—		(134)

										$	68,790	$	—	$	68,790

The following reference rates, and their values as of period end, are used for security descriptions:


Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate	0.02%
1 day REPO_CORRA	Canadian Overnight Repo Rate	1.78%
28 day MXIBTIIE	Mexico Interbank THE 28-Day	7.55%
3 month BA	Canadian Bankers Acceptances	2.08%
3 month LIBOR	London Interbank Offered Rate	1.91%

Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written


	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps^(a)	$	—	$	(285,769	)	$	52,900	$	(202,098	)	$	—
OTC Swaps		174,506		(121,425	)		128,832		(221,329	)		—
Options Written		N/A		N/A			177,854		(20,291	)		(59,776	)

^(a)

Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statement of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.


SCHEDULE OF INVESTMENTS			41

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts^(a)	$	—	$	—	$	—	$	—	$	556,314	$	—	$	556,314
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		681,327		—		—		681,327
Options purchased
Investments at value — unaffiliated^(b)		—		—		—		130,584		210,144		—		340,728
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps^(a)		—		—		—		—		52,900		—		52,900
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		198,002		—		—		105,336		—		303,338

	$	—	$	198,002	$	—	$	811,911	$	924,694	$	—	$	1,934,607

Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts ^(a)		—		—		—		—		982,385		—		982,385
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		431,526		—		—		431,526
Options written
Options written at value		—		—		—		40,343		19,433		—		59,776
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps ^(a)		—		73,167		—		—		128,931		—		202,098
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		306,208		—		—		36,546		—		342,754

	$	—	$	379,375	$	—	$	471,869	$	1,167,295	$	—	$	2,018,539

^(a)

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statement of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b)

Includes options purchased at value as reported in the Schedule of Investments.

For the year ended December 31, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:


	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	7,044,219		$	—		$	7,044,219
Forward foreign currency exchange contracts		—		—			—		(1,150,365	)		—			—			(1,150,365	)
Options purchased^(a)		—		—			—		(940,966	)		(155,092	)		—			(1,096,058	)
Options written		—		—			—		523,882			107,535			—			631,417
Swaps		—		(431,305	)		—		2,915			83,460			(313,232	)		(658,162	)

	$	—	$	(431,305	)	$	—	$	(1,564,534	)	$	7,080,122		$	(313,232	)	$	4,771,051

Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—			(2,310,925	)		—			(2,310,925	)
Forward foreign currency exchange contracts		—		—			—		469,637			—			—			469,637
Options purchased^(b)		—		—			—		72,378			(268,207	)		—			(195,829	)
Options written		—		—			—		(8,378	)		248,614			—			240,236
Swaps		—		(262,396	)		—		2,640			(4,014	)		(8,941	)		(272,711	)

	$	—	$	(262,396	)	$	—	$	536,277		$	(2,334,532	)	$	(8,941	)	$	(2,069,592	)

^(a)

Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)

Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.


42		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — long	$	154,313,854
Average notional value of contracts — short		68,193,383
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		35,452,349
Average amounts sold — in USD		18,525,143
Options:
Average value of option contracts purchased		149,870
Average value of option contracts written		72,427
Average notional value of swaption contracts purchased		7,602,250
Average notional value of swaption contracts written		8,430,000
Credit default swaps:
Average notional value — buy protection		24,553,601
Average notional value — sell protection		662,036
Interest rate swaps:
Average notional value — pays fixed rate		87,749,974
Average notional value — receives fixed rate		99,025,407
Currency swaps:
Average notional value — pays		—	^(a)
Average notional value — receives		—	^(a)
Inflation Swaps:
Average notional value — pays fixed rate		7,234,423
Average notional value — receives fixed rate		9,302,063

^(a)

Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period.

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:


	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	76,927		$	186,789
Forward foreign currency exchange contracts		681,327			431,526
Options^(a)		340,728			59,776
Swaps — Centrally cleared		1,114			—
Swaps — OTC^(b)		303,338			342,754

Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	1,403,434		$	1,020,845
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(94,164	)		(204,526	)

Total derivative assets and liabilities subject to an MNA	$	1,309,270		$	816,319

^(a)

Includes options purchased at value which is included in Investments at value — unaffiliated in the Statement of Assets and Liabilities and reported in the Schedule of Investments.

^(b)

Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/received in the Statement of Assets and Liabilities.


SCHEDULE OF INVESTMENTS			43

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund


Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset^(a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets ^(b)
Bank of America NA	$	147,778	$	(17,925	)	$	—	$	—	$	129,853
Barclays Bank plc		5,025		(5,025	)		—		—		—
BNP Paribas SA		13,902		(13,902	)		—		—		—
Citibank NA		329,447		(224,064	)		—		—		105,383
Credit Suisse International		19,410		(19,410	)		—		—		—
Deutsche Bank AG		326,314		(48,996	)		—		—		277,318
Goldman Sachs International		117,415		(77,063	)		—		—		40,352
HSBC Bank plc		136,704		(58,874	)		—		—		77,830
JPMorgan Chase Bank NA		142,960		(142,960	)		—		—		—
JPMorgan Securities LLC		3,589		(2,091	)		—		—		1,498
Morgan Stanley & Co. International plc		37,390		(37,390	)		—		—		—
Natwest Markets plc		12,104		(373	)		—		—		11,731
UBS AG		17,232		(1,977	)		—		—		15,255

	$	1,309,270	$	(650,050	)	$	—	$	—	$	659,220


Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset^(a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities^(c)
Bank of America NA	$	17,925	$	(17,925	)	$	—	$	—	$	—
Barclays Bank plc		37,567		(5,025	)		—		—		32,542
BNP Paribas SA		24,768		(13,902	)		—		—		10,866
Citibank NA		224,064		(224,064	)		—		—		—
Credit Suisse International		66,582		(19,410	)		—		—		47,172
Deutsche Bank AG		48,996		(48,996	)		—		—		—
Goldman Sachs International		77,063		(77,063	)		—		—		—
HSBC Bank plc		58,874		(58,874	)		—		—		—
JPMorgan Chase Bank NA		197,379		(142,960	)		—		—		54,419
JPMorgan Securities LLC		2,091		(2,091	)		—		—		—
Morgan Stanley & Co. International plc		55,162		(37,390	)		—		—		17,772
Natwest Markets plc		373		(373	)		—		—		—
State Street Bank and Trust Co.		3,498		—			—		—		3,498
UBS AG		1,977		(1,977	)		—		—		—

	$	816,319	$	(650,050	)	$	—	$	—	$	166,269

^(a)

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b)

Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)

Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:


	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	42,029,704	$	3,780,025	$	45,809,729
Corporate Bonds:
Aerospace & Defense		—		7,653,660		—		7,653,660
Air Freight & Logistics		—		766,404		—		766,404


44		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund


	Level 1		Level 2		Level 3		Total
Airlines	$	—	$	3,760,754	$	—	$	3,760,754
Auto Components		—		135,015		—		135,015
Automobiles		—		2,697,169		—		2,697,169
Banks		—		42,826,760		—		42,826,760
Beverages		—		3,413,280		—		3,413,280
Biotechnology		—		2,402,027		—		2,402,027
Building Products		—		178,762		—		178,762
Capital Markets		—		10,972,551		806,975		11,779,526
Chemicals		—		2,334,384		—		2,334,384
Commercial Services & Supplies		—		2,275,483		—		2,275,483
Communications Equipment		—		543,368		—		543,368
Construction Materials		—		24,037		—		24,037
Consumer Finance		—		5,445,843		—		5,445,843
Containers & Packaging		—		355,495		—		355,495
Distributors		—		272,410		—		272,410
Diversified Consumer Services		—		971,588		—		971,588
Diversified Financial Services		—		1,873,643		—		1,873,643
Diversified Telecommunication Services		—		8,568,654		—		8,568,654
Electric Utilities		—		14,079,125		—		14,079,125
Electronic Equipment, Instruments & Components		—		232,592		—		232,592
Energy Equipment & Services		—		250,070		—		250,070
Entertainment		—		559,138		—		559,138
Equity Real Estate Investment Trusts (REITs)		—		2,769,352		—		2,769,352
Food & Staples Retailing		—		1,601,961		—		1,601,961
Food Products		—		1,144,424		—		1,144,424
Gas Utilities		—		172,808		—		172,808
Health Care Equipment & Supplies		—		1,286,775		—		1,286,775
Health Care Providers & Services		—		7,639,599		—		7,639,599
Hotels, Restaurants & Leisure		—		2,790,681		—		2,790,681
Household Durables		—		260,076		—		260,076
Household Products		—		132,165		—		132,165
Independent Power and Renewable Electricity Producers		—		76,487		—		76,487
Industrial Conglomerates		—		994,140		—		994,140
Insurance		—		2,316,451		—		2,316,451
Internet & Direct Marketing Retail		—		947,045		—		947,045
IT Services		—		5,923,534		—		5,923,534
Leisure Products		—		182,165		—		182,165
Life Sciences Tools & Services		—		1,501,711		—		1,501,711
Machinery		—		365,798		—		365,798
Media		—		6,922,902		—		6,922,902
Metals & Mining		—		1,549,955		—		1,549,955
Multiline Retail		—		52,663		—		52,663
Multi-Utilities		—		665,561		—		665,561
Oil, Gas & Consumable Fuels		—		16,955,814		—		16,955,814
Paper & Forest Products		—		644,743		—		644,743
Pharmaceuticals		—		5,649,079		—		5,649,079
Real Estate Management & Development		—		3,053,151		—		3,053,151
Road & Rail		—		2,817,780		—		2,817,780
Semiconductors & Semiconductor Equipment		—		4,728,137		—		4,728,137
Software		—		2,866,209		—		2,866,209
Specialty Retail		—		501,550		—		501,550
Technology Hardware, Storage & Peripherals		—		1,676,096		—		1,676,096
Thrifts & Mortgage Finance		—		699,206		—		699,206
Tobacco		—		3,101,175		—		3,101,175
Trading Companies & Distributors		—		641,913		—		641,913
Wireless Telecommunication Services		—		1,606,493		—		1,606,493
Floating Rate Loan Interests:
Air Freight & Logistics		—		310,564		—		310,564
Banks		—		—		366,783		366,783
Building Products		—		162,319		—		162,319
Capital Markets		—		—		156,422		156,422
Construction Materials		—		134,068		—		134,068
Diversified Financial Service		—		111,703		—		111,703
Health Care Providers & Service		—		349,945		—		349,945
Hotels, Restaurants & Leisure		—		186,035		157,407		343,442
Media		—		200,980		—		200,980


SCHEDULE OF INVESTMENTS			45

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund


	Level 1			Level 2			Level 3		Total
Oil, Gas & Consumable Fuels	$	—		$	470,699		$	—	$	470,699
Pharmaceuticals		—			289,600			—		289,600
Road & Rail		—			170,448			—		170,448
Thrifts & Mortgage Finance		—			—			1,307,855		1,307,855
Foreign Agency Obligations ^(a)		—			5,340,643			—		5,340,643
Foreign Government Obligations ^(a)		—			16,497,296			—		16,497,296
Investment Companies		27,401,851			—			—		27,401,851
Municipal Bonds		—			31,282,103			—		31,282,103
Non-Agency Mortgage-Backed Securities		—			22,574,885			909,139		23,484,024
Capital Trusts ^(a)		—			1,984,375			—		1,984,375
U.S. Government Sponsored Agency Securities		—			313,037,753			—		313,037,753
U.S. Treasury Obligations		—			153,252,702			—		153,252,702
Short-Term Securities:
Foreign Government Obligations ^(a)		—			13,191,296			—		13,191,296
Money Market Funds		4,280,184			—			—		4,280,184
Options Purchased:
Foreign currency exchange contracts		—			130,584			—		130,584
Interest rate contracts		16,123			194,021			—		210,144
Unfunded Floating Rate Loan Interests^(b)		—			3,142			—		3,142
Liabilities:
Investments:
TBA Sale Commitments		—			(18,866,663	)		—		(18,866,663	)

	$	31,698,158		$	779,868,013		$	7,484,606	$	819,050,777

Derivative Financial Instruments ^(c)
Assets:
Credit contracts	$	—		$	23,496		$	—	$	23,496
Foreign currency exchange contracts		—			681,327			—		681,327
Interest rate contracts		556,314			158,236			—		714,550
Liabilities:
Credit contracts		—			(257,950	)		—		(257,950	)
Foreign currency exchange contracts		—			(471,869	)		—		(471,869	)
Interest rate contracts		(1,000,122	)		(167,173	)		—		(1,167,295	)

	$	(443,808	)	$	(33,933	)	$	—	$	(477,741	)

^(a)

See above Schedule of Investments for values in each industry or country.

^(b)

Unfunded floating rate loan interests are valued at the unrealized appreciation (depreciation) on the commitment.

^(c)

Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, Reverse Repurchase Agreements of $14,525,706 are categorized as Level 2 within the disclosure hierarchy.


46		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock Total Return V.I. Fund


	Asset- Backed Securities			Corporate Bonds			Floating Rate Loan Interests			Non-Agency Mortgage- Backed Securities			U.S. Government Sponsored Agency Securities			Total
Investments:
Assets:
Opening balance, as of December 31, 2018	$	1,026,437		$	894,031		$	3,465,229		$	3,137,920		$	81,630		$	8,605,247
Transfers into level 3		2,352,107			—			—			—			—			2,352,107
Transfers out of level 3		(20,381	)		—			—			(654,516	)		(81,630	)		(756,527	)
Other ^(a)		808,297			—			—			(808,297	)		—			—
Accrued discounts/premiums		8,242			—			2			38,415			—			46,659
Net realized gain		17,265			—			4,588			24,547			—			46,400
Net change in unrealized appreciation (depreciation)^(b)(c)		89,518			—			60			(79,170	)		—			10,408
Purchases		599,865			—			698,387			—			—			1,298,252
Sales		(1,101,325	)		(87,056	)		(2,179,799	)		(749,760	)		—			(4,117,940	)

Closing balance, as of December 31, 2019	$	3,780,025		$	806,975		$	1,988,467		$	909,139		$	—		$	7,484,606

Net change in unrealized appreciation (depreciation) on investments still held at December 31, 2019 ^(c)	$	88,062		$	—		$	61		$	(79,270	)	$	—		$	8,853

^(a)

Certain Level 3 investments were re-classified between Asset-Backed Securities and Non-Agency Mortgage-Backed Securities.

^(b)

Included in the related net change in unrealized appreciation (depreciation) in the Statement of Operations.

^(c)

Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at December 31, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

See notes to financial statements.


SCHEDULE OF INVESTMENTS			47

Statement of Assets and Liabilities

December 31, 2019


	BlackRock Total Return V.I. Fund

ASSETS
Investments at value — unaffiliated (cost — $790,364,326)	$	806,242,969
Investments at value — affiliated (cost — $31,769,478)		31,671,329
Cash pledged:
Futures contracts		731,050
Centrally cleared swaps		388,090
Foreign currency at value (cost — $3,739,009)		3,771,780
Receivables:
Investments sold		41,614,321
TBA sale commitments		18,856,953
Capital shares sold		369,256
Dividends — affiliated		104,154
Dividends — unaffiliated		14,125
Interest — unaffiliated		4,168,530
Variation margin on futures contracts		76,927
Variation margin on centrally cleared swaps		1,114
Swap premiums paid		174,506
Unrealized appreciation on:
Forward foreign currency exchange contracts		681,327
OTC swaps		128,832
Unfunded floating rate loan interests		3,142
Prepaid expenses		10,674
Other assets		3,870

Total assets		909,012,949


LIABILITIES
Bank overdraft		56,723
Cash received as collateral for TBA commitments		22,000
Options written at value (premium received $217,339)		59,776
TBA sale commitments at value (proceeds $18,856,953)		18,866,663
Reverse repurchase agreements at value		14,525,706
Payables:
Investments purchased		241,150,459
Capital shares redeemed		165,232
Distribution fees		77,510
Income dividend distributions		1,264,550
Interest expense		2,101
Investment advisory fees		120,707
Directors’ and Officer’s fees		2,912
Other affiliates		3,508
Variation margin on futures contracts		186,789
Other accrued expenses		401,941
Swap premiums received		121,425
Unrealized depreciation on:
Forward foreign currency exchange contracts		431,526
OTC swaps		221,329

Total liabilities		277,680,857


NET ASSETS	$	631,332,092


NET ASSETS CONSIST OF
Paid-in capital	$	614,447,345
Accumulated earnings		16,884,747

NET ASSETS	$	631,332,092


NET ASSET VALUE
Class I — Based on net assets of $245,548,084 and 20,096,033 shares outstanding, 600 million shares authorized, $0.10 par value	$	12.22

Class III — Based on net assets of $385,784,008 and 31,952,392 shares outstanding, 100 million shares authorized, $0.10 par value	$	12.07

See notes to financial statements.


48		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations

Year Ended December 31, 2019


	BlackRock Total Return V.I. Fund

INVESTMENT INCOME
Dividends — affiliated	$	894,949
Dividends — unaffiliated		2,976
Interest — unaffiliated		19,888,969
Foreign taxes withheld		(40,529)

Total investment income		20,746,365


EXPENSES
Investment advisory		2,517,635
Transfer agent — class specific		999,078
Distribution — class specific		889,389
Printing		284,927
Accounting services		138,668
Professional		116,381
Custodian		78,930
Directors and Officer		7,127
Transfer agent		5,000
Registration		162
Miscellaneous		106,855

Total expenses excluding interest expense		5,144,152
Interest expense		135,638

Total expenses		5,279,790
Less:
Fees waived and/or reimbursed by the Manager		(113,070)
Transfer agent fees waived and/or reimbursed — class specific		(785,596)

Total expenses after fees waived and/or reimbursed		4,381,124

Net investment income		16,365,241


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		11,855,371
Borrowed bonds		(262,106)
Capital gain distributions from investment companies — affiliated		4
Forward foreign currency exchange contracts		(1,150,365)
Foreign currency transactions		446,201
Futures contracts		7,044,219
Options written		631,417
Swaps		(658,162)

		17,906,579

Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		(98,149)
Investments — unaffiliated		20,567,798
Borrowed bonds		46,605
Forward foreign currency exchange contracts		469,637
Foreign currency translations		(61,624)
Futures contracts		(2,310,925)
Options written		240,236
Swaps		(272,711)
Unfunded floating rate loan interests		3,142

		18,584,009

Net realized and unrealized gain		36,490,588

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	52,855,829

See notes to financial statements.


FINANCIAL STATEMENTS			49

Statements of Changes in Net Assets


	BlackRock Total Return V.I. Fund
	Year Ended December 31,
	2019			2018

INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income	$	16,365,241		$	12,069,063
Net realized gain (loss)		17,906,579			(11,445,812	)
Net change in unrealized appreciation (depreciation)		18,584,009			(1,221,799	)

Net increase (decrease) in net assets resulting from operations		52,855,829			(598,548	)


DISTRIBUTIONS TO SHAREHOLDERS ^(a)
Class I		(8,096,255	)		(4,558,310	)
Class III		(10,610,090	)		(7,248,839	)

Decrease in net assets resulting from distributions to shareholders		(18,706,345	)		(11,807,149	)


CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		32,197,720			157,601,267


NET ASSETS
Total increase in net assets		66,347,204			145,195,570
Beginning of year		564,984,888			419,789,318

End of year	$	631,332,092		$	564,984,888

^(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


50		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)


	BlackRock Total Return V.I. Fund

	Class I

	Year Ended December 31,
	2019		2018		2017		2016		2015


Net asset value, beginning of year	$	11.53	$	11.91	$	11.79	$	11.71	$	11.93

Net investment income^(a)		0.35		0.33		0.29		0.23		0.22
Net realized and unrealized gain (loss)		0.73		(0.39)		0.13		0.09		(0.19)

Net increase (decrease) from investment operations		1.08		(0.06)		0.42		0.32		0.03


Distributions^(b)
From net investment income		(0.35)		(0.32)		(0.30)		(0.24)		(0.25)
From net realized gain		(0.04)		—		—		—		—

Total distributions		(0.39)		(0.32)		(0.30)		(0.24)		(0.25)


Net asset value, end of year	$	12.22	$	11.53	$	11.91	$	11.79	$	11.71


Total Return^(c)
Based on net asset value		9.49%		(0.46)%		3.60%^(d)		2.76%		0.26%


Ratios to Average Net Assets^(e)
Total expenses		0.74%		0.85%^(f)		0.94%		0.82%		0.92%

Total expenses after fees waived and/or reimbursed and paid indirectly		0.54%		0.58%^(f)		0.74%		0.62%		0.74%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.52%		0.55%		0.62%		0.59%		0.69%

Net investment income		2.90%		2.84%		2.43%		1.92%		1.89%


Supplemental Data
Net assets, end of year (000)	$	245,548	$	246,390	$	152,138	$	157,445	$	154,046

Portfolio turnover rate^(g)		536%		488%		627%		590%		900%

^(a) Based on average shares outstanding. ^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. ^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions. ^(d) Includes payment received from an affiliate, which impacted the Fund’s total return. Excluding the payment from an affiliate, the Fund’s total return is 3.51%. ^(e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended December 31,
	2019		2018		2017		2016		2015

Investments in underlying funds		0.01%		0.01%		—%		0.01%		0.01%

^(f) Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 0.82% and 0.57%, respectively. ^(g) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended December 31,
	2019		2018		2017		2016		2015

Portfolio turnover rate (excluding MDRs)		326%		310%		389%		396%		625%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			51

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock Total Return V.I. Fund
	Class III
	Year Ended December 31,
	2019			2018			2017			2016			2015


Net asset value, beginning of year	$	11.40		$	11.76		$	11.65		$	11.57		$	11.79

Net investment income^(a)		0.31			0.29			0.25			0.19			0.18
Net realized and unrealized gain (loss)		0.71			(0.37	)		0.12			0.10			(0.19	)

Net increase (decrease) from investment operations		1.02			(0.08	)		0.37			0.29			(0.01	)


Distributions^(b)
From net investment income		(0.31	)		(0.28	)		(0.26	)		(0.21	)		(0.21	)
From net realized gain		(0.04	)		—			—			—			—

Total distributions		(0.35	)		(0.28	)		(0.26	)		(0.21	)		(0.21	)


Net asset value, end of year	$	12.07		$	11.40		$	11.76		$	11.65		$	11.57


Total Return^(c)
Based on net asset value		9.05	%		(0.63	)%		3.21	%^(d)		2.46	%		(0.08	)%


Ratios to Average Net Assets^(e)
Total expenses		0.97	%		1.06	%^(f)		1.16	%		1.01	%		1.06	%

Total expenses after fees waived and/or reimbursed and paid indirectly		0.85	%		0.89	%^(f)		1.06	%		0.93	%		1.04	%

Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.83	%		0.86	%		0.94	%		0.89	%		0.98	%

Net investment income		2.58	%		2.54	%		2.15	%		1.61	%		1.54	%


Supplemental Data
Net assets, end of year (000)	$	385,784		$	318,595		$	267,651		$	175,153		$	68,844

Portfolio turnover rate^(g)		536	%		488	%		627	%		590	%		900	%

^(a) Based on average shares outstanding. ^(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. ^(c) Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions. ^(d) Includes payment received from an affiliate, which had no impact on the Fund’s total return. ^(e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended December 31,
	2019			2018			2017			2016			2015

Investments in underlying funds		0.01%			0.01%			—%			0.01%			0.01%

^(f) Includes reorganization costs associated with the Fund’s reorganization. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 1.03% and 0.88%, respectively. ^(g) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended December 31,
	2019			2018			2017			2016			2015

Portfolio turnover rate (excluding MDRs)		326%			310%			389%			396%			625%

See notes to financial statements.


52		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

1.	*ORGANIZATION*

BlackRock Variable Series Funds II, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation that is comprised of 3 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and variable life insurance contracts. The financial statements presented are for BlackRock Total Return V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

Prior Year Reorganization: The Board of Trustees of State Farm Variable Product Trust and shareholders of the State Farm Fund approved the reorganization (the “State Farm Reorganization”) of the State Farm Fund (defined below) into the Fund. As a result, the Fund acquired substantially all of the assets and assumed substantially all of the liabilities of the State Farm Fund in exchange for an equal aggregate value of newly-issued Class I Shares of the Fund.

Each shareholder of the State Farm Fund received shares of the Fund in an amount equal to the aggregate net asset value (“NAV”) of such shareholder’s State Farm Fund shares, as determined at the close of business on October 26, 2018, less the costs of the State Farm Reorganization.

The State Farm Reorganization was accomplished by a tax-free exchange of shares of the Fund in the following amount and at the following conversion ratio:

State Farm Fund

Shares Prior to
Reorganization

Conversion
Ratio

Total Return
V.I. Fund
Share Class

Shares of
Total Return
V.I. Fund

State Farm Bond Fund, a series of State Farm Variable Product Trust

11,641,553

0.85469550

Class I

9,949,983

The State Farm Fund’s net assets and composition of net assets on October 26,2018, the valuation date of the State Farm Reorganization were as follows:


State Farm Fund	Net Assets		Paid-In Capital		Accumulated Loss
State Farm Bond Fund, a series of State Farm Variable Product Trust	$	113,486,424	$	116,592,762	$	(3,106,338	)

For financial reporting purposes, assets received and shares issued by the Fund were recorded at fair value. However, the cost basis of the investments received from the State Farm Fund was carried forward to align ongoing reporting of the Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.

The net assets of the Fund before the State Farm Reorganization were $440,042,333. The aggregate net assets of the Fund immediately after the reorganization amounted to $553,528,757. The State Farm Fund’s fair value and cost of investments prior to the State Farm Reorganization were as follows:


State Farm Fund	Fair Value of Investments		Cost of Investments
State Farm Bond Fund, a series of State Farm Variable Product Trust	$	102,795,581	$	105,908,727

The purpose of the transaction was to combine the assets of the State Farm Fund with the assets of the Fund. The State Farm Reorganization was a tax-free event and was effective on October 29, 2018.

Assuming the reorganization had been completed on January 1, 2018, the beginning of the fiscal reporting period of the Fund, the pro forma results of operations for the year ended December 31, 2018, are as follows:

•

Net investment income: $15,145,680

•

Net realized and change in unrealized loss on investments: $(17,219,170)

•

Net decrease in net assets resulting from operations: $(2,073,490)

Because the combined investment portfolios have been managed as a single integrated portfolio since the reorganization was completed, it is not practicable to separate the amounts of revenue and earnings of the Fund that have been included in the Fund’s Statement of Operations since October 29, 2018.

State Farm Reorganization costs incurred by the Fund in connection with the State Farm Reorganization were expensed by the Fund.

2.	*SIGNIFICANT ACCOUNTING POLICIES*


NOTES TO FINANCIAL STATEMENTS			53

Notes to Financial Statements (continued)

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Dividends from foreign securities where the ex-dividend date may have passed are subsequently recorded when the Fund is informed of the ex-dividend date. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., dollar rolls, TBA sale commitments, futures contracts, forward foreign currency exchange contracts, options written and swaps) or certain borrowings (e.g., reverse repurchase agreements) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the fiscal period ended December 31, 2019. The adjusted cost basis of securities at December 31, 2018 is $623,962,504. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of the Fund.

3.	*INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS*

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

•


54		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

•

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

•

Investments in open-end U.S. mutual funds are valued at NAV each business day.

•

Futures contracts traded on exchanges are valued at their last sale price.

•

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. OTC options and options on swaps (“swaptions”) are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

•

To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services.


NOTES TO FINANCIAL STATEMENTS			55

Notes to Financial Statements (continued)


		Standard Inputs Generally Considered By Third Party Pricing Services
Market approach		(i) recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii) market multiples of comparable issuers.
Income approach		(i) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach		(i) audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii) relevant news and other public sources; and (iv) known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

•

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

•

4.	*SECURITIES AND OTHER INVESTMENTS*

Asset-Backed and Mortgage-Backed Securities: Asset-backed securities are generally issued as pass-through certificates or as debt instruments. Asset-backed securities issued as pass-through certificates represent undivided fractional ownership interests in an underlying pool of assets. Asset-backed securities issued as debt instruments, which are also known as collateralized obligations, are typically issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security will have the effect of shortening the maturity of the security. In addition, a fund may subsequently have to reinvest the proceeds at lower interest rates. If a fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.


56		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.

Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Collateralized Debt Obligations: Collateralized debt obligations (“CDOs”), including collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”), are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

Inflation-Indexed Bonds: Inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are typically issued by the U.S. Government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. Stripped mortgage-backed securities may be privately issued.

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.


NOTES TO FINANCIAL STATEMENTS			57

Notes to Financial Statements (continued)

include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.


Borrower	Par	Commitment Amount	Value	Unrealized Appreciation (Depreciation)
Triton Bidco, Term Loan B	$160,793	$ 158,304	$ 161,446	$ 3,142

Forward Commitments, When-Issued and Delayed Delivery Securities: The fund may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the fund may be required to pay more at settlement than the security is worth. In addition, the fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

TBA Commitments: TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. When entering into TBA commitments, a fund may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

In order to better define contractual rights and to secure rights that will help a fund mitigate their counterparty risk, TBA commitments may be entered into by a fund under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other things, collateral posting terms and netting provisions in the event of default and/or termination event. The collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of the collateral currently pledged by a fund and the counterparty. Cash collateral that has been pledged to cover the obligations of a fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a fund, if any, is noted in the Schedule of Investments. Typically, a fund is permitted to sell, re-pledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a fund are not fully collateralized, contractually or otherwise, a fund bears the risk of loss from counterparty non-performance.

Mortgage Dollar Roll Transactions: The fund may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and realize gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.

Borrowed Bond Agreements: Repurchase agreements may be referred to as borrowed bond agreements when entered into in connection with short sales of bonds. In a borrowed bond agreement, a fund borrows a bond from a counterparty in exchange for cash collateral. The agreement contains a commitment that the security and the


58		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

cash will be returned to the counterparty and a fund at a mutually agreed upon date. Certain agreements have no stated maturity and can be terminated by either party at any time. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between a fund and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. A fund may also experience delays in gaining access to the collateral.

Reverse Repurchase Agreements: Reverse repurchase agreements are agreements with qualified third party broker dealers in which a fund sells securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. A fund receives cash from the sale to use for other investment purposes. During the term of the reverse repurchase agreement, a fund continues to receive the principal and interest payments on the securities sold. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. A fund may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk. If a fund suffers a loss on its investment of the transaction proceeds from a reverse repurchase agreement, a fund would still be required to pay the full repurchase price. Further, a fund remains subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, a fund would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

Cash received in exchange for securities delivered plus accrued interest due to the counterparty is recorded as a liability in the Statement of Assets and Liabilities at face value including accrued interest. Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value. Interest payments made by a fund to the counterparties are recorded as a component of interest expense in the Statement of Operations. In periods of increased demand for the security, a fund may receive a fee for the use of the security by the counterparty, which may result in interest income to a fund.

For the year ended December 31, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Fund were $3,990,936 and 1.73%, respectively.

Reverse repurchase agreements are entered into by a fund under Master Repurchase Agreements (each, an “MRA”), which permit a fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from a fund. With reverse repurchase agreements, typically a fund and counterparty under an MRA are permitted to sell, re-pledge, or use the collateral associated with the transaction. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, a fund receives or posts securities and cash as collateral with a market value in excess of the repurchase price to be paid or received by a fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, a fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.

As of period end, the following table is a summary of the Fund’s open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis:

Counterparty

Reverse
Repurchase
Agreements

Fair Value of
Non-cash
Collateral
Pledged

Including

Accrued
Interest^(a)

Cash
Collateral
Pledged/
Received

Net
Amount

Bank of America Securities, Inc.

$ (14,525,706)

$ 14,525,706

$ —

^(a)	Collateral with a value of $14,531,347 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

In the event the counterparty of securities under an MRA files for bankruptcy or becomes insolvent, a fund’s use of the proceeds from the agreement may be restricted while the counterparty, or its trustee or receiver, determines whether or not to enforce a fund’s obligation to repurchase the securities.

Short Sale Transactions: In short sale transactions, a fund sells a security it does not hold in anticipation of a decline in the market price of that security. When a fund makes a short sale, it will borrow the security sold short (borrowed bond) and deliver the fixed-income security to the counterparty to which it sold the security short. An amount equal to the proceeds received by a fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. A fund is required to repay the counterparty interest on the security sold short, which, if applicable, is included in interest expense in the Statement of Operations. A fund is exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of an unlimited loss since there is an unlimited potential for the market price of the security sold short to increase. A gain is limited to the price at which a fund sold the security short. A realized gain or loss is recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance that a fund will be able to close out a short position at a particular time or at an acceptable price.


NOTES TO FINANCIAL STATEMENTS			59

Notes to Financial Statements (continued)

5.	*DERIVATIVE FINANCIAL INSTRUMENTS*

varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Amounts pledged, which are considered restricted, are included in cash pledged for futures contracts in the Statement of Assets and Liabilities.

Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited, if any, are shown as cash pledged for futures contracts in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the notional amount of the contract at the time it was opened and the notional amount at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities.

Options: The Fund purchases and writes call and put options to increase or decrease its exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value — unaffiliated and options written at value, respectively, in the Statement of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statement of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statement of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Fund writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Fund writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statement of Assets and Liabilities.

•

Swaptions — The Fund purchases and writes options on swaps (“swaptions”) primarily to preserve a return or spread on a particular investment or portion of the Fund’s holdings, as a duration management technique or to protect against an increase in the price of securities it anticipates purchasing at a later date. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

•

Foreign currency options — The Fund purchases and writes foreign currency options, foreign currency futures and options on foreign currency futures to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk). Foreign currency options give the purchaser the right to buy from or sell to the writer a foreign currency at any time before the expiration of the option.

•

Barrier options — The Fund may purchase and write a variety of options with non-standard payout structures or other features (“barrier options”) that are generally traded OTC.


60		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

predetermined barrier price levels prior to the option’s expiration date. One-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument reaches or surpasses predetermined barrier price levels prior to the expiration date. Up-and-out options expire worthless to the purchaser if the price of the underlying instrument increases beyond a predetermined barrier price level prior to the expiration date. Up-and-in options can only be exercised when the price of the underlying instrument increases beyond a predetermined barrier price level.

In purchasing and writing options, the Fund bears the risk of an unfavorable change in the value of the underlying instrument or the risk that it may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Fund purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.

•

Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.

•

Currency swaps — Currency swaps are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

Currency swaps are interest rate swaps in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Currency swaps may also involve an exchange of notional amounts at the start, during and/or at expiration of the contract, either at the current spot rate or another specified rate.

•

Forward swaps — The Fund enters into forward interest rate swaps and forward total return swaps. In a forward swap, the Fund and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.

•

Inflation swaps — Inflation swaps are entered into to gain or reduce exposure to inflation (inflation risk). In an inflation swap, one party makes fixed interest payments on a notional principal amount in exchange for another party’s variable payments based on an inflation index, such as the Consumer Price Index.


NOTES TO FINANCIAL STATEMENTS			61

Notes to Financial Statements (continued)

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from its counterparties are not fully collateralized, it bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, it bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

6.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

For such services, the Fund pays the Manager a monthly fee based on a percentage of the aggregate average daily net assets of the Fund and BlackRock High Yield V.I. Fund, a series of the Company, at the following annual rates:


Average Daily Net Assets	Investment Advisory Fees
First $250 Million		0.50	%
$250 Million — $500 Million		0.45
$500 Million — $750 Million		0.40
Greater than $750 Million		0.35

With respect to the Fund, the Manager entered into separate sub-advisory agreements, effective August 27, 2019, with BlackRock International Limited (“BIL”) and BlackRock (Singapore) Limited (“BRS”) (collectively, the “Sub-Advisers”), each an affiliate of the Manager. The Manager pays BIL and BRS for services they provide for that portion of the Fund for which BIL and BRS, as applicable, acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

For the year ended December 31, 2019, the aggregate average daily net assets of the Fund and BlackRock High Yield V.I. Fund were approximately $1,116,375,659.

For the year ended December 31, 2019, the class specific distribution fees borne directly by Class III were $889,389.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping, sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific in the Statement of Operations. For the year ended December 31, 2019, the Fund did not pay any amounts to affiliates in return for these services.


62		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

For the year ended December 31, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:


Class I			$ 449,013
Class III			550,065
			$ 999,078

Expense Limitations, Waivers and Reimbursements: The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2019, the amount waived was $13,800.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through April 30, 2021. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended December 31, 2019, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

For the year ended December 31, 2019, the Fund reimbursed the Manager $7,655 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:


Class I	0.00	%
Class III	0.06

These amounts waived and/or reimbursed are shown as transfer agent fees waived and/or reimbursed — class specific in the Statement of Operations. For the year ended December 31, 2019, class specific expense waivers and/or reimbursements are as follows:


			Transfer Agent Fees Waived and/or Reimbursed
Class I			$ 449,013
Class III			336,583
			$ 785,596

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business and excluding distribution fees for Class III shares (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:


Class I		0.60%
Class III		1.50

In addition, with respect to Class I shares, the Manager has contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses including interest expense, and excluding dividend expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business to 0.60% of average daily net assets through April 30, 2021.

The Manager has agreed not to reduce or discontinue these contractual expense limitations through April 30, 2021, unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended December 31, 2019, the Manager waived and/or reimbursed $99,270 which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

During the year ended December 31, 2019, the Fund did not participate in the Interfund Lending Program.


NOTES TO FINANCIAL STATEMENTS			63

Notes to Financial Statements (continued)

Other Transactions: The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the year ended December 31, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:


Purchases	$	485,455
Sales		171,317
Net Realized Gain		6,889

7.	*PURCHASES AND SALES*

For the year ended December 31, 2019, purchases and sales of investments, including paydowns and mortgage dollar rolls and excluding short-term securities, were as follows:


	Purchases		Sales
Non-U.S. Government Securities	$	3,562,463,471	$	3,438,407,290
U.S. Government Securities		198,115,908		129,318,282

For the year ended December 31, 2019, purchases and sales related to mortgage dollar rolls were $1,398,597,539 and $1,398,808,099, respectively.

8.	*INCOME TAX INFORMATION*

The tax character of distributions paid was as follows:


	12/31/19		12/31/18
Ordinary income	$	17,557,301	$	11,807,149
Long-term capital gains		1,149,044		—

	$	18,706,345		11,807,149

As of period end, the tax components of accumulated earnings were as follows:


Undistributed ordinary income	$	706,135
Undistributed long-term capital gains	$	1,245,132
Net unrealized gains ^(a)		14,933,480

	$	16,884,747

^(a)

The difference between book-basis and tax-basis net unrealized gains was attributable primarily to the tax deferral of losses on wash sales and straddles, the realization for tax purposes of unrealized gains/losses on certain futures, options and foreign currency contracts, amortization methods for premiums and discounts on fixed income securities, the accounting for swap agreements and the classification of investments.

During the year ended December 31, 2019, the Fund utilized $11,325,583 of its capital loss carryforward.

As of December 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:


Tax cost	$	822,513,391

Gross unrealized appreciation	$	19,602,496
Gross unrealized depreciation		(4,359,131	)

Net unrealized appreciation	$	15,243,365

9.	*BANK BORROWINGS*


64		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statement of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended December 31, 2019, the Fund did not borrow under the credit agreement.

10.

PRINCIPAL RISKS

Many municipalities insure repayment of their bonds, which may reduce the potential for loss due to credit risk. The market value of these bonds may fluctuate for other reasons, including market perception of the value of such insurance, and there is no guarantee that the insurer will meet its obligation.

Inventories of municipal bonds held by brokers and dealers may decrease, which would lessen their ability to make a market in these securities. Such a reduction in market making capacity could potentially decrease the Fund’s ability to buy or sell bonds. As a result, the Fund may sell a security at a lower price, sell other securities to raise cash, or give up an investment opportunity, any of which could have a negative impact on performance. If the Fund needed to sell large blocks of bonds, those sales could further reduce the bonds’ prices and impact performance.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

For OTC options purchased, the Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Fund should the counterparty fail to perform under the contracts. Options written by the Fund do not typically give rise to counterparty credit risk, as options written generally obligate the Fund, and not the counterparty, to perform. The Fund may be exposed to counterparty credit risk with respect to options written to the extent the Fund deposits collateral with its counterparty to a written option.


NOTES TO FINANCIAL STATEMENTS			65

Notes to Financial Statements (continued)

clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: The Fund invests a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

The Fund invests a significant portion of its assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Investment percentages in these securities are presented in the Schedule of Investments. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions.

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:


	Year Ended 12/31/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		993,847		$	11,950,864			933,798		$	10,833,853
Shares issued in reinvestment of distributions		677,136			8,126,680			369,629			4,273,362
Shares issued resulting from reorganization		—			—			9,949,983			113,486,424
Shares redeemed		(2,942,075	)		(35,288,318	)		(2,665,076	)		(30,779,754	)
Net increase (decrease)		(1,271,092	)	$	(15,210,774	)		8,588,334		$	97,813,885
Class III
Shares sold		6,788,622		$	80,399,856			6,390,408		$	73,352,056
Shares issued in reinvestment of distributions		883,225			10,495,162			616,305			7,043,445
Shares redeemed		(3,678,563	)		(43,486,524	)		(1,797,585	)		(20,608,119	)
Net increase		3,993,284		$	47,408,494			5,209,128		$	59,787,382
Total Net Increase		2,722,192		$	32,197,720			13,797,462		$	157,601,267

12.

SUBSEQUENT EVENTS


66		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Total Return V.I. Fund and the Board of Directors of BlackRock Variable Series Funds II, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of BlackRock Total Return V.I. Fund of BlackRock Variable Series Funds II, Inc. (the “Fund”), including the schedule of investments, as of December 31, 2019, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2019, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Deloitte & Touche LLP

Boston, Massachusetts

February 14, 2020

We have served as the auditor of one or more BlackRock investment companies since 1992.


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM			67

Glossary of Terms Used in this Report

Currency


AUD		Australian Dollar
BRL		Brazilian Real
CAD		Canadian Dollar
CHF		Swiss Franc
CNH		Chinese Yuan Offshore
CNY		Chinese Yuan
COP		Colombian Peso
EGP		Egyptian Pound
EUR		Euro
IDR		Indonesian Rupiah
JPY		Japanese Yen
KRW		South Korean Won
MXN		Mexican Peso
NGN		Nigerian Naira
NOK		Norwegian Krone
RUB		New Russian Ruble
TRY		Turkish Lira
TWD		Taiwan New Dollar
USD		United States Dollar
ZAR		South African Rand

Portfolio Abbreviations


ABS		Asset-Backed Security
BA		Canadian Bankers Acceptances
BZDIOVER		Overnight Brazil CETIP — Interbank Rate
CLO		Collateralized Loan Obligation
COP		Certificates of Participation
CSMC		Credit Suisse Mortgage Capital
CWABS		Countrywide Asset-Backed Certificates
DAC		Designated Activity Company
GO		General Obligation Bonds
LIBOR		London lnterbank Offered Rate
MXIBTIIE		Mexico Interbank THE 28-Day
OTC		Over-the-counter
PCL		Public Company Limited
PJSC		Public Joint Stock Company
RB		Revenue Bonds
REMIC		Real Estate Mortgage Investment Conduit
REPO_CORRA		Canadian Overnight Repo Rate
SCA		Svenska Cellulosa Aktiebolaget
SOFR		Secured Overnight Financing Rate
TBA		To-be-announced
VRDN		Variable Rate Demand Notes


68		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


		DECEMBER 31, 2019



		2019 Annual Report

BlackRock Variable Series Funds II, Inc.

BlackRock U.S. Government Bond V.I. Fund

Not FDIC Insured - May Lose Value - No Bank Guarantee


Fund Summary as of December 31, 2019		BlackRock U.S. Government Bond V.I. Fund

Investment Objective

BlackRock U.S. Government Bond V.I. Fund’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended December 31, 2019, the Fund underperformed its benchmark, the Bloomberg Barclays U.S. Government/Mortgage Index. For the same period, the Fund’s Class I Shares performed in line with its secondary benchmark, the Bloomberg Barclays U.S. Mortgage-Backed Securities Index, while the Fund’s Class III Shares underperformed. The following discussion of relative performance pertains to the Bloomberg Barclays U.S. Government/Mortgage Index.

What factors influenced performance?

Detractors from the Fund’s performance relative to the benchmark included the use of swap and swaption strategies to gain tactical interest rate exposures. Positioning with respect to global interest rates and currencies also weighed on Fund returns.

Positive contributors to performance relative to the benchmark included the Fund’s stance with respect to U.S. interest rates. Specifically, an above-benchmark stance with respect to duration (and corresponding interest rate sensitivity) aided returns as Treasury yields declined. Within securitized sectors, an allocation to commercial mortgage-backed securities (“CMBS”) contributed positively, as the segment continued to benefit from favorable fundamentals. In addition, the Fund’s exposure to inflation-protected securities and security selection with 30-year agency mortgage-backed securities (“MBS”) proved beneficial.

Describe recent portfolio activity.

During the reporting period, the Fund’s underweight position to agency MBS was shifted to an overweight position as valuations became attractive and the Fund’s investment adviser’s fundamental outlook remained positive. The Fund maintained an overweight allocation to CMBS overall while trimming exposure to agency CMBS. The Fund shifted from an underweight stance with respect to duration to a duration overweight stance relative to the benchmark.

The Fund had a modestly elevated cash position at period end due to the investment adviser’s increasing preference for using forward contracts to gain MBS exposure as opposed to holding cash bonds. The Fund’s cash position did not have a material impact on performance over the 12-months period ended December 31, 2019.

Describe portfolio positioning at period end.

The Fund was overweight in agency MBS relative to the benchmark, with exposures continuing to favor higher coupons relative to lower coupons, given valuations that appear attractive relative to the underlying fundamentals. The Fund continued to hold a core allocation to CMBS and agency collateralized mortgage obligations for carry (incremental income). The Fund was slightly overweight in duration at the headline level, favoring the front end of the yield curve. The Fund had meaningful exposure to U.S. inflation on the view that the market was underpricing a potential pickup in realized inflation data. Outside the United States, the Fund was marginally positioned on the long end of the yield curve in German, Italian and Canadian interest rates, and positioned short to U.K. rates. Additionally, the Fund had an allocation to local currency emerging market sovereign debt in Asia, Latin America and Central Europe.

Portfolio Information

PORTFOLIO COMPOSITION


Asset Type	Percent of Total Investments ^(a)
U.S. Government Sponsored Agency Securities		52	%
U.S. Treasury Obligations		41
Non-Agency Mortgage-Backed Securities		5
Asset-Backed Securities		2
Foreign Government Obligations		—	^(b)

^(a)

Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(b)

Represents less than 1% of the Fund’s total investments.


2		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS


Fund Summary as of December 31, 2019 (continued)		BlackRock U.S. Government Bond V.I. Fund

TOTAL RETURN BASED ON A $10,000 INVESTMENT

LOGO

^(a)

Assuming transaction costs, if any, and other operating expenses, including investment advisory fees. Does not include insurance related fees and expenses. The returns for Class III Shares prior to July 15, 2013, the recommencement of operations of Class III Shares, are based upon the performance of the Predecessor Fund’s Class I Shares. The returns for Class III Shares, however, are adjusted to reflect the distribution and/or service (12b-1) fees applicable to Class III Shares.

^(b)

The Fund invests, under normal circumstances, at least 80% of its assets in fixed-income securities that are issued or guaranteed by the U.S. Government and its agencies. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock U.S. Government Bond V.I. Fund (the “Predecessor Fund”), a series of BlackRock Variable Series Funds, Inc., through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Fund’s total returns prior to October 1, 2011 are the returns of the Predecessor Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Government Income V.I. Fund”.

^(c)

An index that measures debt issued by the U.S. Government, and its agencies, as well as mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac.

^(d)

An unmanaged index that includes the mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac that meet certain maturity and liquidity criteria.

Performance Summary for the Period Ended December 31, 2019


										Average Annual Total Returns ^(a)
	Standardized 30-Day Yields^(b)			Unsubsidized 30-Day Yields^(b)			6-Month Total Returns ^(a)			1 Year			5 Years			10 Years
Class I ^(c)		2.02	%		1.56	%		1.68	%		6.36	%		1.97	%		2.94	%
Class III ^(c)		1.73			1.38			1.52			6.14			1.65			2.66	^(d)
Bloomberg Barclays U.S. Government/Mortgage Index		—			—			1.79			6.63			2.45			3.07
Bloomberg Barclays U.S. Mortgage-Backed Securities Index		—			—			2.09			6.35			2.58			3.15

^(a)

For a portion of the period, the Fund’s investment adviser waived a portion of its fee. Without such waiver, the Fund’s performance would have been lower.

^(b)

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

^(c)

Average annual and cumulative total returns are based on changes in net asset value (“NAV”) for the periods shown, and assume reinvestment of all distributions at NAV on the ex-dividend/ payable date. Insurance-related fees and expenses are not reflected in these returns. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of the Predecessor Fund, a series of BlackRock Variable Series Funds, Inc., through the Reorganization. The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Fund’s total returns prior to October 1, 2011 are the returns of the Predecessor Fund when it followed a different investment objective and different investment strategies under the name “BlackRock Government Income V.I. Fund”.

^(d)

The returns for Class III Shares prior to July 15, 2013, the recommencement of operations of Class III Shares, are based upon the performance of the Predecessor Fund’s Class I Shares. The returns for Class III Shares, however, are adjusted to reflect the distribution (12b-1) fees applicable to Class III Shares.

Past performance is not indicative of future results. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.


FUND SUMMARY			3


Fund Summary as of December 31, 2019 (continued)		BlackRock U.S. Government Bond V.I. Fund

Expense Example


	Actual								Hypothetical ^(a)
					Including Interest Expense and Fees		Excluding Interest Expense and Fees				Including Interest Expense and Fees				Excluding Interest Expense and Fees
	Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period ^(b)		Expenses Paid During the Period ^(c)		Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period ^(b)		Ending Account Value (12/31/19)		Expenses Paid During the Period ^(c)
Class I	$	1,000.00	$	1,016.80	$	5.69	$	3.25	$	1,000.00	$	1,019.56	$	5.70	$	1,021.98	$	3.26
Class III		1,000.00		1,015.20		7.26		4.83		1,000.00		1,018.00		7.27		1,020.42		4.84

^(a)

Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)

For each class of the Fund, expenses are equal to the annualized expense ratio for the class (1.12% for Class I and 1.43% for Class III), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

^(c)

For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.64% for Class I and 0.95% for Class III), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 5 for further information on how expenses were calculated.


4		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

The Benefits and Risks of Leveraging

The Fund may utilize leverage to seek to enhance returns and net asset value (“NAV”). However, there is no guarantee that these objectives can be achieved in all interest rate environments.

The Fund may utilize leverage by entering into reverse repurchase agreements.

Disclosure of Expenses

Derivative Financial Instruments


THE BENEFITS AND RISKS OF LEVERAGING / DISCLOSURE OF EXPENSES / DERIVATIVE FINANCIAL INSTRUMENTS			5

Schedule of Investments

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

(Percentages shown are based on Net Assets)


Security		Par (000)		Value

Asset-Backed Securities — 2.3%^(a)
Dryden XXVIII Senior Loan Fund, Series 2013- 28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 3.11%, 08/15/30^(b)	USD		700	$	698,948
LMREC, Inc., Series 2016-CRE2, Class A, (LIBOR USD 1 Month + 1.70%), 3.48%, 11/24/31^(b)			13		12,699
Progress Residential Trust, Series 2017-SFR1, Class A, 2.77%, 08/17/34			100		99,753
Romark WM-R Ltd., Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.00%, 04/20/31^(b)			500		494,128


Total Asset-Backed Securities — 2.3% (Cost: $1,312,286)					1,305,528


Foreign Government Obligations — 0.4%

Mexico — 0.2%
United Mexican States:
6.50%, 06/09/22	MXN		4		22,096
8.00%, 12/07/23			4		20,688
8.00%, 09/05/24			3		17,512
10.00%, 12/05/24			9		56,818

					117,114

Russia — 0.2%
Russian Federation:
7.10%, 10/16/24	RUB		2,227		37,565
8.50%, 09/17/31			3,107		59,035

					96,600


Total Foreign Government Obligations — 0.4% (Cost: $201,270)					213,714


Non-Agency Mortgage-Backed Securities — 6.9%

Collateralized Mortgage Obligations — 0.6%
Seasoned Credit Risk Transfer Trust:
Series 2018-2, Class MA, 3.50%, 11/25/57	USD		108		111,560
Series 2018-3, Class MA, 3.50%, 08/25/57			137		142,211
Series 2019-2, Class MA, 3.50%, 08/25/58			79		81,863

					335,634

Commercial Mortgage-Backed Securities — 5.8%
BX Commercial Mortgage Trust, Series 2019- XL, Class D, 3.19%, 10/15/36^(a)(c)			300		300,375
BX Trust, Series 2019-OC11, Class A, 3.20%, 12/09/41^(a)			300		308,560
Cantor Commercial Real Estate Lending, Series 2019-CF3, Class A4, 3.01%, 01/15/53			234		240,049
Commercial Mortgage Trust, Series 2017- PANW, Class A, 3.24%, 10/10/29^(a)			440		453,317
CSAIL Commercial Mortgage Trust, Series 2019-C17, Class C, 3.93%, 09/15/52			85		86,593
Hudson Yards Mortgage Trust, Series 2019- 30HY, Class D, 3.44%, 07/10/39^(a)(c)			101		101,317
JPMCC Commercial Mortgage Securities Trust, Series 2019-COR5, Class A4, 3.39%, 06/13/52			80		84,568
JPMDB Commercial Mortgage Securities Trust, Series 2019-COR6, Class A4, 3.06%, 11/13/52			169		174,141
Morgan Stanley Capital I Trust: Series 2018-SUN, Class A, 2.64%, 07/15/35^(a)(c)			145		144,545
Series 2019-H6, Class A4, 3.42%, 06/15/52			131		138,939
Series 2019-H7, Class A4, 3.26%, 07/15/52			173		180,442


Security		Par (000)		Value

Commercial Mortgage-Backed Securities (continued)
Series 2019-L3, Class A4, 3.13%, 11/15/29	USD		257	$	265,217
One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 09/15/54^(a)			290		282,329
UBS Commercial Mortgage Trust:
Series 2019-C17, Class A4, 2.92%, 10/15/52			273		277,433
Series 2019-C18, Class A4, 3.04%, 12/15/52			98		100,443
Wells Fargo Commercial Mortgage Trust, Series 2019-C54, Class A4, 3.15%, 12/15/52			126		130,671

					3,268,939

Interest Only Commercial Mortgage-Backed Securities — 0.5%^(c)
CSAIL Commercial Mortgage Trust, Series 2019-C16, Class XA, 1.57%, 06/15/52			1,741		207,344
UBS Commercial Mortgage Trust, Series 2019- C17, Class XA, 1.64%, 10/15/52			1,019		114,771

					322,115


Total Non-Agency Mortgage-Backed Securities — 6.9% (Cost: $3,909,492)					3,926,688


U.S. Government Sponsored Agency Securities — 69.8%

Agency Obligations — 1.0%
Federal Home Loan Bank, 4.00%, 04/10/28			500		574,363


Collateralized Mortgage Obligations — 2.6%
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 4901, Class BF, (LIBOR USD 1 Month + 0.40%), 2.14%, 07/25/49^(b)			236		235,054
Federal National Mortgage Association, Series 2011-8, Class ZA, 4.00%, 02/25/41			218		229,474
Federal National Mortgage Association Variable Rate Notes, Series 2019-39, Class LF, (LIBOR USD 1 Month + 0.45%), 2.24%, 08/25/49^(b)			206		205,380
Government National Mortgage Association Variable Rate Notes:
Series 2014-107, Class WX, 6.83%, 07/20/39^(d)			132		149,390
Series 2019-21, Class FL, (LIBOR USD 1 Month + 0.45%), 2.21%, 02/20/49^(b)			320		319,793
Series 2019-89, Class FH, (LIBOR USD 1 Month + 0.40%), 2.16%, 07/20/49^(b)			326		326,175

					1,465,266

Commercial Mortgage-Backed Securities — 1.1%
Federal Home Loan Mortgage Corp. Variable Rate Notes^(d):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			221		228,746
Series 2019-SB61, Class A10F, 3.17%, 01/25/29			184		189,974
Federal National Mortgage Association ACES Variable Rate Notes, Series 2019-M1, Class A2, 3.56%, 09/25/28^(d)			118		127,597
Government National Mortgage Association:
Series 2019-7, Class V, 3.00%, 05/16/35			22		22,668
Series 2019-53, Class V, 2.75%, 08/16/31			55		56,206

					625,191

Interest Only Commercial Mortgage-Backed Securities — 1.7%
Federal Home Loan Mortgage Corp., Series 2015-K718, Class X2A, 0.10%, 02/25/48^(a).			20,878		32,208
Federal National Mortgage Association ACES Variable Rate Notes, Series 2015-M1, Class X2, 0.54%, 09/25/24^(d)			4,419		94,605


6		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

(Percentages shown are based on Net Assets)


Security		Par (000)		Value

Interest Only Commercial Mortgage-Backed Securities (continued)
Government National Mortgage Association Variable Rate Notes:
Series 2002-83, 0.00%, 10/16/42^(d)	USD		894	$	1
Series 2003-17, 0.00%, 03/16/43^(d)			2,035		—
Series 2003-109, 0.00%, 11/16/43^(d)			1,685		66
Series 2016-22, 0.77%, 11/16/55^(d)			2,533		127,408
Series 2016-45, 0.99%, 02/16/58^(d)			1,816		121,955
Series 2016-92, 1.00%, 04/16/58^(d)			635		43,024
Series 2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58^(b)			1,374		112,067
Series 2016-151, 1.09%, 06/16/58^(d)			969		72,991
Series 2017-30, 0.71%, 08/16/58^(d)			685		37,585
Series 2017-44, 0.70%, 04/17/51^(d)			739		39,933
Series 2017-53, 0.69%, 11/16/56^(d)			2,000		107,113
Series 2017-61, 0.77%, 05/16/59^(d)			502		33,117
Series 2017-64, 0.72%, 11/16/57^(d)			803		48,249
Series 2017-72, 0.68%, 04/16/57^(d)			1,304		75,629

					945,951

Mortgage-Backed Securities — 63.4%
Federal Home Loan Mortgage Corp.:
2.50%, 03/01/30 - 04/01/31			205		208,021
3.00%, 09/01/27 - 12/01/46			503		518,960
3.50%, 04/01/31 - 01/01/48			2,143		2,272,586
4.00%, 08/01/40 - 12/01/45			238		256,477
4.50%, 02/01/39 - 07/01/47			241		261,900
5.00%, 10/01/41 - 11/01/41			158		173,241
5.50%, 06/01/41			106		119,507
8.00%, 12/01/29 - 07/01/30			25		28,557
Federal National Mortgage Association:
3.00%, 02/01/44			68		70,291
3.13%, 09/01/27			122		128,064
3.16%, 03/01/27			186		195,639
3.50%, 11/01/46			189		198,511
4.00%, 01/01/41			10		11,152
Government National Mortgage Association:
2.50%, 01/15/50^(e)			80		80,341
3.00%, 02/15/45 - 12/20/46			1,504		1,553,138
3.00%, 01/15/50^(e)			54		55,479
3.50%, 01/15/42 - 10/20/46			2,631		2,744,482
4.00%, 09/20/40 - 01/15/48			801		840,667
4.00%, 01/15/50 - 02/15/50^(e)			630		651,660
4.50%, 12/20/39 - 03/20/49			1,517		1,626,268
4.50%, 01/15/50^(e)			1,473		1,539,975
5.00%, 12/15/38 - 07/20/42			99		109,525
5.00%, 01/15/50^(e)			214		225,302
5.50%, 01/15/34			490		542,022
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32			120		119,033
2.50%, 04/01/30 - 02/01/33			676		686,233
2.50%, 01/25/35 - 01/25/50^(e)			863		863,500
3.00%, 04/01/29 - 03/01/47			3,652		3,764,790
3.00%, 01/25/35 - 01/25/50^(e)			309		314,514
3.50%, 04/01/29 - 01/01/48			2,827		3,002,685
3.50%, 01/25/35 - 02/25/50^(e)			1,199		1,233,307
4.00%, 01/01/26 - 08/01/49			2,746		2,950,105
4.00%, 01/25/50 - 02/25/50^(e)			5,372		5,587,794
4.50%, 05/01/24 - 05/01/48			496		535,601
4.50%, 01/25/50 - 02/25/50^(e)			1,499		1,578,482
5.00%, 09/01/35 - 08/01/41			215		236,446
5.50%, 05/01/34 - 12/01/39			216		242,878
6.00%, 04/01/35 - 06/01/41			245		280,629


Security		Par (000)		Value

Mortgage-Backed Securities (continued)
6.50%, 05/01/40	USD		43	$	49,251

					35,857,013


Total U.S. Government Sponsored Agency Securities — 69.8% (Cost: $38,859,129)					39,467,784


U.S. Treasury Obligations — 56.1%
U.S. Treasury Bonds:
4.25%, 05/15/39			170		224,068
4.50%, 08/15/39			170		231,074
4.38%, 11/15/39			170		227,873
3.13%, 02/15/43			660		750,054
2.88%, 05/15/43 - 11/15/46			1,290		1,413,314
3.63%, 08/15/43			660		811,026
3.75%, 11/15/43			660		827,037
3.00%, 02/15/48			630		710,030
2.25%, 08/15/49^(f)			895		870,667
U.S. Treasury Inflation Linked Notes:
0.50%, 04/15/24^(f)			5,098		5,180,286
0.25%, 07/15/29			302		304,750
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25^(f)			4,100		4,128,053
2.50%, 12/31/20^(f)			1,890		1,905,799
1.13%, 07/31/21			740		734,479
1.75%, 07/31/21 - 07/31/24^(f)			3,965		3,976,501
2.13%, 12/31/22 - 05/15/25^(f)			2,650		2,697,864
2.75%, 05/31/23			1,260		1,306,463
2.13%, 07/31/24			1,260		1,284,511
1.50%, 08/15/26			1,830		1,794,615
2.25%, 08/15/27			1,260		1,295,979
2.88%, 08/15/28			380		409,836
3.13%, 11/15/28			380		418,104
1.63%, 08/15/29^(f)			215		209,617


Total U.S. Treasury Obligations — 56.1% (Cost: $30,946,358)					31,712,000


Total Long-Term Investments — 135.5% (Cost: $75,228,535)					76,625,714


Short-Term Securities — 16.6%

Foreign Government Obligations — 2.0%

Japan — 2.0%
Japan Treasury Bills^(g):
(0.14)%, 03/09/20	JPY		62,600		576,299
(0.11)%, 03/16/20			61,600		567,107

					1,143,406


Total Foreign Government Obligations — 2.0% (Cost: $1,142,211)					1,143,406


		Shares
Money Market Funds — 2.3%^(h)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.51%*			1,258,784		1,258,784
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.41%			23,625		23,625


Total Money Market Funds — 2.3% (Cost: $1,282,409)					1,282,409


SCHEDULE OF INVESTMENTS			7

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

(Percentages shown are based on Net Assets)


Security		Par (000)		Value

U.S. Government Sponsored Agency Securities — 12.3%
Federal Home Loan Bank Discount Notes, 1.57%, 02/12/20^(g)	USD		7,000	$	6,987,882


Total U.S. Government Sponsored Agency Securities — 12.3% (Cost: $6,987,186)					6,987,882


Total Short-Term Securities — 16.6% (Cost: $9,411,806)					9,413,697


Total Options Purchased — 0.0% (Cost: $62,699)					29,733


Total Investments Before Options Written and TBA Sale Commitments — 152.1% (Cost: $84,703,040)					86,069,144


Total Options Written — (0.0)% (Premium Received — $40,445)					(29,622	)


TBA Sale Commitments — (10.7)%^(e)

Mortgage-Backed Securities — (10.7)%
Government National Mortgage Association:
3.00%, 01/15/50			323		(331,844	)
3.50%, 01/15/50			1,629		(1,678,336	)
4.00%, 01/15/50			140		(144,900	)
4.50%, 01/15/50			43		(44,955	)
5.00%, 01/15/50			28		(29,479	)
Uniform Mortgage-Backed Securities:
2.50%, 01/25/35 - 02/25/35			1,071		(1,080,237	)
3.00%, 01/25/35 - 01/25/50			1,398		(1,418,060	)
3.50%, 01/25/35 - 01/25/50			334		(343,590	)
4.00%, 01/25/35 - 01/25/50			483		(502,827	)
4.50%, 01/25/50			142		(149,505	)
5.00%, 01/25/50			51		(54,522	)
5.50%, 01/25/50			88		(94,765	)
6.00%, 01/25/50			160		(176,300	)


Total TBA Sale Commitments — (10.7)% (Proceeds: $6,051,181)					(6,049,320	)


Total Investments Net of Options Written and TBA Sale Commitments — 141.4% (Cost: $78,611,414)					79,990,202

Liabilities in Excess of Other Assets — (41.4)%					(23,427,601	)


Net Assets — 100.0%				$	56,562,601

^(a)	Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(b)	Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(c)	Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

^(d)	Variable rate security. Rate shown is the rate in effect as of period end.

^(e)	Represents or includes a TBA transaction.

^(f)	All or a portion of the security has been pledged as collateral in connection with outstanding reverse repurchase agreements.

^(g)	Rates are discount rates or a range of discount rates as of period end.

^(h)	Annualized 7-day yield as of period end.

*	During the year ended December 31, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:


8		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund


Affiliate	Shares Held at 12/31/18		Net Activity			Shares Held at 12/31/19		Value at 12/31/19		Income		Net Realized Gain (Loss) ^(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		2,138,766		(879,982	)		1,258,784	$	1,258,784	$	30,119	$	—	$	—

^(a)	Includes net capital gain distributions, if applicable.

Reverse Repurchase Agreements

Counterparty

Interest
Rate

Trade
Date

Maturity
Date

Face Value

Face Value
Including
Accrued Interest

Type of Non-Cash
Underlying Collateral

Remaining Contractual
Maturity of the Agreements

J.P. Morgan Securities LLC

1.75

12/30/19

01/02/20

5,183,454

5,183,706

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

0.05

12/31/19

01/02/20

883,813

883,814

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.20

12/31/19

01/02/20

211,238

211,245

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

1,615,550

1,615,633

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

1,906,537

1,906,635

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

2,457,337

2,457,463

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

1,423,012

1,423,085

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

2,545,200

2,545,331

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

1,550,350

1,550,430

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

1.85

12/31/19

01/02/20

1,278,900

1,278,966

U.S. Treasury Obligations

Overnight

19,055,391

19,056,308


SCHEDULE OF INVESTMENTS			9

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts


Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-BTP		2		03/06/20	$	320	$	(621	)
Euro-Schatz		21		03/06/20		2,636		(2,343	)
U.S. Treasury 2 Year Note		76		03/31/20		16,378		3,245
90-day Eurodollar		12		09/14/20		2,951		733

								1,014

Short Contracts
Euro-Bund		2		03/06/20		382		3,729
U.S. Treasury 10 Year Note		6		03/20/20		771		(727	)
U.S. Treasury 10 Year Ultra Note		3		03/20/20		422		4,123
U.S. Treasury Ultra Bond		1		03/20/20		182		2,659
Long Gilt		2		03/27/20		348		1,244
U.S. Treasury 5 Year Note		10		03/31/20		1,186		4,619

								15,647

							$	16,661

Forward Foreign Currency Exchange Contracts


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)

BRL	42,639	USD	10,000	Citibank NA		01/03/20	$	600
ZAR	140,675	USD	10,000	JPMorgan Chase Bank NA		01/06/20		40
KRW	5,874,500	USD	5,000	BNP Paribas SA		01/08/20		84
KRW	11,869,800	USD	10,000	Citibank NA		01/08/20		273
MXN	195,316	USD	10,000	State Street Bank and Trust Co.		01/08/20		323
RUB	641,550	USD	10,000	Bank of America NA		01/09/20		329
USD	576,772	JPY	62,619,000	Citibank NA		01/09/20		257
USD	568,877	JPY	61,619,000	UBS AG		01/14/20		1,408
COP	106,019,600	USD	30,696	JPMorgan Chase Bank NA		01/22/20		1,533
COP	37,835,500	USD	10,929	Natwest Markets plc		01/22/20		573
RUB	497,511	USD	7,706	Citibank NA		01/22/20		290
RUB	736,489	USD	11,435	JPMorgan Chase Bank NA		01/22/20		402
BRL	40,670	USD	10,000	Credit Suisse International		02/04/20		100
JPY	1,086,615	USD	10,000	State Street Bank and Trust Co.		02/05/20		19
MXN	622,000	USD	32,121	Bank of America NA		02/05/20		607
MXN	190,000	USD	9,693	HSBC Bank plc		02/05/20		304
BRL	622,486	USD	152,000	Bank of America NA		03/18/20		2,265
BRL	578,060	USD	140,000	Deutsche Bank AG		03/18/20		3,255
MXN	967,150	USD	50,000	BNP Paribas SA		03/18/20		583
MXN	3,707,635	USD	190,000	Citibank NA		03/18/20		3,911
MXN	773,480	USD	40,000	Deutsche Bank AG		03/18/20		453
RUB	18,134,950	USD	283,000	Bank of America NA		03/18/20		6,535

								24,144

USD	10,000	BRL	40,620	Credit Suisse International		01/03/20		(97	)
JPY	1,086,282	USD	10,000	State Street Bank and Trust Co.		01/06/20		(1	)
USD	10,000	JPY	1,088,433	State Street Bank and Trust Co.		01/06/20		(19	)
USD	10,000	ZAR	147,523	Natwest Markets plc		01/06/20		(529	)
USD	15,000	KRW	17,844,300	Deutsche Bank AG		01/08/20		(444	)
USD	10,000	MXN	191,152	UBS AG		01/08/20		(103	)
USD	10,000	RUB	627,827	Standard Chartered Bank		01/09/20		(108	)
USD	41,502	COP	143,855,100	Credit Suisse International		01/22/20		(2,228	)
USD	32,027	RUB	2,074,201	JPMorgan Chase Bank NA		01/22/20		(1,311	)
USD	14,296	RUB	925,800	Natwest Markets plc		01/22/20		(585	)
USD	154,771	MXN	2,995,000	HSBC Bank plc		02/05/20		(2,816	)


10		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

Forward Foreign Currency Exchange Contracts (continued)


Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	75,422	RUB	4,846,868	JPMorgan Chase Bank NA		02/05/20	$	(2,343	)
USD	10,000	ZAR	141,244	JPMorgan Chase Bank NA		02/05/20		(39	)
								(10,623	)

Net Unrealized Appreciation							$	13,521

Exchange-Traded Options Purchased


Description	Number of Contracts	Expiration Date			Exercise Price			Notional Amount (000)		Value
Call
90-day Eurodollar March 2020 Futures	24		03/13/20	USD		99.00	USD		6,000	$	600
90-day Eurodollar March 2020 Futures	48		03/13/20	USD		99.13	USD		12,000		900

										$	1,500

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration
Date

Exercise
Rate

Notional

Amount (000)

Value

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.71%

Semi-Annual

Citibank NA

06/03/20

1.71

USD

220

1,770

Put

2-Year Interest Rate Swap

2.00%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

01/22/20

2.00

USD

4,700

5-Year Interest Rate Swap

2.72%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

02/03/20

2.72

USD

700

—

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

USD

1,700

10-Year Interest Rate Swap

2.30%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

03/30/20

2.30

USD

168

10-Year Interest Rate Swap

2.30%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

03/30/20

2.30

USD

282

505

10-Year Interest Rate Swap

1.71%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

06/03/20

1.71

USD

220

5,884

10-Year Interest Rate Swap

2.11%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

08/17/20

2.11

USD

1,800

19,900

26,463

28,233

Exchange-Traded Options Written


Description	Number of Contracts	Expiration Date			Exercise Price			Notional Amount (000)		Value
Call
90-day Eurodollar March 2020 Futures	24		03/13/20	USD		98.88	USD		6,000	$	(750	)
90-day Eurodollar March 2020 Futures	48		03/13/20	USD		99.00	USD		12,000		(900	)

										$	(1,650)


SCHEDULE OF INVESTMENTS			11

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

OTC Interest Rate Swaptions Written

Paid by the Fund

Received by the Fund

Counterparty

Expiration
Date

Exercise

Rate

Notional

Amount (000)

Value

Description

Rate

Frequency

Rate

Frequency

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.45%

Semi-Annual

Deutsche Bank AG

01/16/20

1.45

USD

800

)

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.66%

Semi-Annual

Citibank NA

03/12/20

1.66

USD

1,400

(4,755

)

2-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.89%

Semi-Annual

Citibank NA

05/01/20

1.89

USD

4,300

(23,209

)

(27,972)

Centrally Cleared Interest Rate Swaps


Paid by the Fund		Received by the Fund				Effective Date			Termination Date					Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate		Frequency		Effective Date			Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
3 month LIBOR	Quarterly		1.37%		Semi-Annual		N/A			11/30/20		USD	1,350	$	(5,655)		$	11,222	$	(16,877)
1.37%	Semi-Annual		3 month LIBOR		Quarterly		N/A			11/30/20		USD	2,470		10,347			—		10,347
28 day MXIBTIIE	Monthly		6.88%		Monthly		N/A			12/15/20		MXN	1,043		(91	)		—		(91	)
28 day MXIBTIIE	Monthly		6.88%		Monthly		N/A			12/16/20		MXN	2,018		(176	)		—		(176	)
3 month LIBOR	Quarterly		2.38%		Semi-Annual		N/A			05/03/21		USD	1,460		13,647			—		13,647
6.86%	Monthly		28 day MXIBTIIE		Monthly		07/24/20	^(a)		07/23/21		MXN	265		(50	)		—		(50	)
6.90%	Monthly		28 day MXIBTIIE		Monthly		07/27/20	^(a)		07/26/21		MXN	370		(78	)		—		(78	)
6.78%	Monthly		28 day MXIBTIIE		Monthly		08/07/20	^(a)		08/06/21		MXN	1,171		(185	)		—		(185	)
3 month BA	Semi-Annual		1.94%		Semi-Annual		N/A			12/06/21		CAD	1,075		(711	)		—		(711	)
28 day MXIBTIIE	Monthly		6.52%		Monthly		N/A			12/14/21		MXN	1,583		(295	)		—		(295	)
28 day MXIBTIIE	Monthly		6.51%		Monthly		N/A			12/15/21		MXN	1,349		(260	)		—		(260	)
3 month BA	Semi-Annual		2.02%		Semi-Annual		N/A			12/17/21		CAD	1,095		475			—		475
7.23%	Monthly		28 day MXIBTIIE		Monthly		N/A			07/18/22		MXN	288		(218	)		—		(218	)
7.23%	Monthly		28 day MXIBTIIE		Monthly		N/A			07/19/22		MXN	144		(110	)		—		(110	)
7.22%	Monthly		28 day MXIBTIIE		Monthly		N/A			07/20/22		MXN	55		(40	)		—		(40	)
7.21%	Monthly		28 day MXIBTIIE		Monthly		N/A			07/25/22		MXN	77		(57	)		—		(57	)
7.20%	Monthly		28 day MXIBTIIE		Monthly		N/A			08/03/22		MXN	359		(270	)		—		(270	)
28 day MXIBTIIE	Monthly		7.00%		Monthly		N/A			08/11/22		MXN	669		319			—		319
7.11%	Monthly		28 day MXIBTIIE		Monthly		N/A			10/14/22		MXN	321		(219	)		—		(219	)
7.11%	Monthly		28 day MXIBTIIE		Monthly		N/A			10/14/22		MXN	424		(286	)		—		(286	)
2.50%	Semi-Annual		3 month LIBOR		Quarterly		N/A			01/29/23		USD	1,035		(32,843	)		—		(32,843	)
3 month LIBOR	Quarterly		2.61%		Semi-Annual		N/A			02/07/24		USD	700		30,363			—		30,363
2.71%	Semi-Annual		3 month LIBOR		Quarterly		N/A			03/18/24		USD	1,700		(81,065	)		—		(81,065	)
28 day MXIBTIIE	Monthly		6.73%		Monthly		N/A			08/09/24		MXN	226		59			—		59
28 day MXIBTIIE	Monthly		6.67%		Monthly		N/A			08/12/24		MXN	496		65			—		65
28 day MXIBTIIE	Monthly		6.72%		Monthly		N/A			08/13/24		MXN	427		98			—		98
28 day MXIBTIIE	Monthly		6.59%		Monthly		N/A			11/08/24		MXN	642		(37	)		—		(37	)
3 month LIBOR	Quarterly		2.13%		Semi-Annual		N/A			08/25/25		USD	15		382			—		382
3.07%	Semi-Annual		3 month LIBOR		Quarterly		N/A			08/31/25		USD	4,230		(338,530	)		—		(338,530	)
3.04%	Semi-Annual		3 month LIBOR		Quarterly		N/A			08/31/25		USD	1,700		(133,006	)		—		(133,006	)
2.85%	Semi-Annual		3 month LIBOR		Quarterly		N/A			12/21/28		USD	300		(24,397	)		—		(24,397	)
3 month LIBOR	Quarterly		1.45%		Semi-Annual		N/A			08/19/29		USD	200		(7,437	)		—		(7,437	)
3 month LIBOR	Quarterly		1.47%		Semi-Annual		N/A			09/09/29		USD	200		(6,996	)		—		(6,996	)
1.59%	Semi-Annual		3 month LIBOR		Quarterly		N/A			09/12/29		USD	150		3,588			—		3,588
1.61%	Semi-Annual		3 month LIBOR		Quarterly		N/A			10/01/29		USD	400		11,129			—		11,129

														$	(562,540	)	$	11,222	$	(573,762	)

^(a)

Forward Swap.


12		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

OTC Credit Default Swaps — Buy Protection


Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Republic of Colombia		1.00	%		Quarterly		Citibank NA		12/20/24		USD	49	$	(652	)	$	(177	)	$	(475	)
United Mexican States		1.00	%		Quarterly		Citibank NA		12/20/24		USD	23		(243	)		173			(416	)
United Mexican States		1.00	%		Quarterly		Citibank NA		12/20/24		USD	10		(106	)		60			(166	)

													$	(1,001	)	$	56		$	(1,057	)

OTC Interest Rate Swaps


Paid by the Fund		Received by the Fund			Termination Date				Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency	Counterparty	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)

4.45%	At Termination	1 day BZDIOVER	At Termination	JPMorgan Chase Bank NA		01/04/21	BRL	400	$	166		$	—	$	166
4.46%	At Termination	1 day BZDIOVER	At Termination	Citibank NA		01/04/21	BRL	268		104			—		104
4.49%	At Termination	1 day BZDIOVER	At Termination	Citibank NA		01/04/21	BRL	393		124			—		124
1 day
BZDIOVER	At Termination	5.32%	At Termination	JPMorgan Chase Bank NA		01/03/22	BRL	295		115			—		115
1 day
BZDIOVER	At Termination	6.35%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL	211		1,170			—		1,170
1 day
BZDIOVER	At Termination	8.27%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL	134		3,310			—		3,310
1 day
BZDIOVER	At Termination	5.98%	At Termination	JPMorgan Chase Bank NA		01/02/25	BRL	126		(418	)		—		(418	)
1 day
BZDIOVER	At Termination	5.99%	At Termination	Citibank NA		01/02/25	BRL	90		(281	)		—		(281	)
1 day
BZDIOVER	At Termination	6.03%	At Termination	JPMorgan Chase Bank NA		01/02/25	BRL	90		(241	)		—		(241	)
1 day
BZDIOVER	At Termination	6.05%	At Termination	Citibank NA		01/02/25	BRL	88		(214	)		—		(214	)
1 day
BZDIOVER	At Termination	6.26%	At Termination	Citibank NA		01/02/25	BRL	133		(6	)		—		(6	)
28 day				Goldman Sachs
MXIBTIIE	Monthly	6.32%	Monthly	International		08/06/25	MXN	640		(571	)		—		(571	)
		28 day
6.31%	Monthly	MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN	810		748			—		748

									$	4,006		$	—	$	4,006

The following reference rates, and their values as of period end, are used for security descriptions:


Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate	0.02%
28 day MXIBTIIE	Mexico Interbank TIIE 28-Day	7.55%
3 month BA	Canadian Bankers Acceptances	2.08%
3 month LIBOR	London Interbank Offered Rate	1.91%


SCHEDULE OF INVESTMENTS			13

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

Balances Reported in the Statement of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written


	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation			Value
Centrally Cleared Swaps ^(a)	$	11,222	$	—		$	70,472	$	(644,234	)	$	—
OTC Swaps		233		(177	)		5,737		(2,788	)		—
Options Written		N/A		N/A			21,669		(10,846	)		(29,622	)

^(a)

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statement of Assets and Liabilities were as follows:


	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts ^(a)	$	—	$	—	$	—	$	—	$	20,352	$	—	$	20,352
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		24,144		—		—		24,144
Options purchased
Investments at value — unaffiliated ^(b)		—		—		—		—		29,733		—		29,733
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps ^(a)		—		—		—		—		70,472		—		70,472
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		233		—		—		5,737		—		5,970

	$	—	$	233	$	—	$	24,144	$	126,294	$	—	$	150,671


Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts ^(a)		—		—		—		—		3,691		—		3,691
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		10,623		—		—		10,623
Options written
Options written at value		—		—		—		—		29,622		—		29,622
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps ^(a)		—		—		—		—		644,234		—		644,234
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		1,234		—		—		1,731		—		2,965

	$	—	$	1,234	$	—	$	10,623	$	679,278	$	—	$	691,135

^(a)

^(b)

Includes options purchased at value as reported in the Schedule of Investments.

For the year ended December 31, 2019, the effect of derivative financial instruments in the Statement of Operations was as follows:


	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	241,405		$	—		$	241,405
Forward foreign currency exchange contracts		—		—			—		(48,414	)		—			—			(48,414	)
Options purchased ^(a)		—		—			—		(17,260	)		(5,532	)		—			(22,792	)
Options written		—		—			—		33			66,416			—			66,449
Swaps		—		(6,035	)		—		—			(97,920	)		(32,363	)		(136,318	)

	$	—	$	(6,035	)	$	—	$	(65,641	)	$	204,369		$	(32,363	)	$	100,330


14		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund


	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts			Total
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—		(81,040	)		—			(81,040	)
Forward foreign currency exchange contracts		—		—			—		11,969		—			—			11,969
Options purchased ^(b)		—		—			—		158		(79,592	)		—			(79,434	)
Options written		—		—			—		—		94,042			—			94,042
Swaps		—		(4,070	)		—		—		(389,497	)		(890	)		(394,457	)

	$	—	$	(4,070)		$	—	$	12,127		$ (456,087)		$	(890)		$	(448,920	)

^(a)

Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)

Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

Average Quarterly Balances of Outstanding Derivative Financial Instruments


Futures contracts:
Average notional value of contracts — long	$	22,198,928
Average notional value of contracts — short		3,700,045
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		1,107,767
Average amounts sold — in USD		1,079,331
Options:
Average value of option contracts purchased		4,338
Average value of option contracts written		14,663
Average notional value of swaption contracts purchased		6,472,000
Average notional value of swaption contracts written		8,370,000
Credit default swaps:
Average notional value — buy protection		103,596
Interest rate swaps:
Average notional value — pays fixed rate		14,790,966
Average notional value — receives fixed rate		7,829,969
Inflation swaps:
Average notional value — pays fixed rate		1,414,657
Average notional value — receives fixed rate		1,311,151

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:


	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	6,023		$	1,584
Forward foreign currency exchange contracts		24,144			10,623
Options ^(a)		29,733			29,622
Swaps — Centrally cleared		18,642			—
Swaps — OTC ^(b)		5,970			2,965

Total derivative assets and liabilities in the Statement of Assets and Liabilities	$	84,512		$	44,794
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(26,165	)		(3,234	)

Total derivative assets and liabilities subject to an MNA	$	58,347		$	41,560

^(a)

Includes options purchased at value which is included in Investments at value – unaffiliated in the Statement of Assets and Liabilities and reported in the Schedule of Investments.

^(b)

Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/received in the Statement of Assets and Liabilities.


SCHEDULE OF INVESTMENTS			15

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund


Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset ^(a)			Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets ^(b)
Bank of America NA	$	9,904	$	—		$	—	$	—	$	9,904
BNP Paribas SA		667		—			—		—		667
Citibank NA		33,855		(29,699	)		—		—		4,156
Credit Suisse International		100		(100	)		—		—		—
Deutsche Bank AG		4,456		(452	)		—		—		4,004
HSBC Bank plc		304		(304	)		—		—		—
JPMorgan Chase Bank NA		6,738		(4,352	)		—		—		2,386
Natwest Markets plc		573		(573	)		—		—		—
State Street Bank and Trust Co.		342		(20	)		—		—		322
UBS AG		1,408		(103	)		—		—		1,305

	$	58,347	$	(35,603	)	$	—	$	—	$	22,744


Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset ^(a)			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities ^(c)
Citibank NA	$	29,699	$	(29,699	)	$	—	$	—	$	—
Credit Suisse International		2,325		(100	)		—		—		2,225
Deutsche Bank AG		452		(452	)		—		—		—
Goldman Sachs International		571		—			—		—		571
HSBC Bank plc		2,816		(304	)		—		—		2,512
JPMorgan Chase Bank NA		4,352		(4,352	)		—		—		—
Natwest Markets plc		1,114		(573	)		—		—		541
Standard Chartered Bank		108		—			—		—		108
State Street Bank and Trust Co.		20		(20	)		—		—		—
UBS AG		103		(103	)		—		—		—

	$	41,560	$	(35,603	)	$	—	$	—	$	5,957

^(a)

The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b)

Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)

Net amount represents the net amount payable due to the counterparty in the event of default.


16		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments (continued)

December 31, 2019

BlackRock U.S. Government Bond V.I. Fund

Fair Value Hierarchy as of Period End

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:



	Level 1			Level 2			Level 3		Total

Assets:
Investments:
Long-Term Investments ^(a)	$	—		$	76,625,714		$	—	$	76,625,714
Short-Term Securities:
Foreign Government Obligations ^(a)		—			1,143,406			—		1,143,406
Money Market Funds		1,282,409			—			—		1,282,409
U.S. Government Sponsored Agency Securities		—			6,987,882			—		6,987,882
Options Purchased:
Interest rate contracts.		1,500			28,233			—		29,733
Liabilities:
Investments:
TBA Sale Commitments		—			(6,049,320	)		—		(6,049,320	)

	$	1,283,909		$	78,735,915		$	—	$	80,019,824

Derivative Financial Instruments ^(b)
Assets:
Foreign currency exchange contracts	$	—		$	24,144		$	—	$	24,144
Interest rate contracts		20,352			76,209			—		96,561
Liabilities:
Credit contracts		—			(1,057	)		—		(1,057	)
Foreign currency exchange contracts		—			(10,623	)		—		(10,623	)
Interest rate contracts		(5,341	)		(673,937	)		—		(679,278	)

	$	15,011		$	(585,264	)	$	—	$	(570,253	)

^(a)

See above Schedule of Investments for values in each security type or country.

^(b)

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, Reverse Repurchase Agreements of $19,056,308 are categorized as Level 2 within the disclosure hierarchy.

See notes to financial statements.


SCHEDULE OF INVESTMENTS			17

Statement of Assets and Liabilities

December 31, 2019


	BlackRock U.S. Government Bond V.I. Fund

ASSETS
Investments at value — unaffiliated (cost — $83,444,256)	$	84,810,360
Investments at value — affiliated (cost — $1,258,784)		1,258,784
Cash pledged:
Futures contracts		62,710
Centrally cleared swaps		208,943
Foreign currency at value (cost — $148,512)		148,913
Receivables:
Investments sold		3,147,567
TBA sale commitments		6,051,181
Capital shares sold		177,703
Dividends — affiliated		1,490
Dividends — unaffiliated		10,658
Interest — unaffiliated		296,812
Variation margin on futures contracts		6,023
Variation margin on centrally cleared swaps		18,642
Swap premiums paid		233
Unrealized appreciation on:
Forward foreign currency exchange contracts		24,144
OTC swaps		5,737
Prepaid expenses		1,047
Other assets		2,928

Total assets		96,233,875


LIABILITIES
Bank overdraft		8,133
Options written at value (premium received $40,445)		29,622
TBA sale commitments at value (proceeds $6,051,181)		6,049,320
Reverse repurchase agreements at value		19,056,308
Payables:
Investments purchased		14,263,034
Capital shares redeemed		305
Distribution fees		545
Income dividend distributions		89,852
Investment advisory fees		11,485
Directors’ and Officer’s fees		6,643
Other affiliates		360
Variation margin on futures contracts		1,584
Other accrued expenses		140,495
Swap premiums received		177
Unrealized depreciation on:
Forward foreign currency exchange contracts		10,623
OTC swaps		2,788

Total liabilities		39,671,274


NET ASSETS	$	56,562,601


NET ASSETS CONSIST OF
Paid-in capital	$	60,081,423
Accumulated loss		(3,518,822)

NET ASSETS	$	56,562,601


NET ASSET VALUE
Class I — Based on net assets of $53,865,072 and 5,217,566 shares outstanding, 300 million shares authorized, $0.10 par value	$	10.32

Class III — Based on net assets of $2,697,529 and 261,444 shares outstanding, 100 million shares authorized, $0.10 par value	$	10.32

See notes to financial statements.


18		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Operations

Year Ended December 31, 2019


	BlackRock U.S. Government Bond V.I. Fund

INVESTMENT INCOME
Dividends — affiliated	$	30,119
Dividends — unaffiliated		99
Interest — unaffiliated		2,038,348
Foreign taxes withheld		(93)

Total investment income		2,068,473


EXPENSES
Investment advisory		293,505
Transfer agent — class specific		118,052
Professional		92,733
Accounting services		75,748
Custodian		37,024
Distribution — class specific		9,561
Transfer agent		5,000
Directors and Officer		4,235
Printing		2,482
Miscellaneous		27,326

Total expenses excluding interest expense		665,666
Interest expense		338,399

Total expenses		1,004,065
Less:
Fees waived and/or reimbursed by the Manager		(106,873)
Transfer agent fees waived and/or reimbursed — class specific		(115,758)

Total expenses after fees waived and/or reimbursed		781,434

Net investment income		1,287,039


REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — unaffiliated		638,891
Forward foreign currency exchange contracts		(48,414)
Foreign currency transactions		(1,533)
Futures contracts		241,405
Options written		66,449
Swaps		(136,318)

		760,480

Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		1,939,311
Forward foreign currency exchange contracts		11,969
Foreign currency translations		1,152
Futures contracts		(81,040)
Options written		94,042
Swaps		(394,457)

		1,570,977

Net realized and unrealized gain		2,331,457

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,618,496

See notes to financial statements.


FINANCIAL STATEMENTS			19

Statements of Changes in Net Assets


	BlackRock U.S. Government Bond V.I. Fund

	Year Ended December 31,

	2019		2018


INCREASE (DECREASE) IN NET ASSETS

OPERATIONS
Net investment income	$	1,287,039	$	1,275,743
Net realized gain (loss)		760,480		(684,974)
Net change in unrealized appreciation (depreciation)		1,570,977		(536,909)

Net increase in net assets resulting from operations		3,618,496		53,860


DISTRIBUTIONS TO SHAREHOLDERS ^(a)
Class I		(1,276,900)		(1,272,977)
Class III		(76,865)		(44,457)

Decrease in net assets resulting from distributions to shareholders		(1,353,765)		(1,317,434)


CAPITAL SHARE TRANSACTIONS
Net decrease in net assets derived from capital share transactions		(3,827,360)		(7,496,000)


NET ASSETS
Total decrease in net assets		(1,562,629)		(8,759,574)
Beginning of year		58,125,230		66,884,804

End of year	$	56,562,601	$	58,125,230

^(a)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

See notes to financial statements.


20		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Statement of Cash Flows

Year Ended December 31, 2019


	BlackRock U.S. Government Bond V.I. Fund

CASH PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	3,618,496
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Proceeds from sales of long-term investments and principal paydowns		499,114,681
Purchases of long-term investments		(492,088,415	)
Net purchases of short-term securities		(6,777,760	)
Amortization of premium and accretion of discount on investments		(71,143	)
Premiums received from options written		188,329
Premiums paid on closing options written		(138,006	)
Net realized (gain) loss on investments and options written		(705,340	)
Net unrealized (appreciation) depreciation on investments, options written, forward foreign currency exchange contracts, foreign currency translations and swaps		(2,044,040	)

(Increase) Decrease in Assets:
Receivables:
Dividends — affiliated		103
Dividends — unaffiliated		(1,430	)
Interest — unaffiliated		40,432
From the Manager		161,754
Variation margin on futures contracts		21,961
Variation margin on centrally cleared swaps		(18,642	)
Swap premiums paid		3,103
Prepaid expenses		(985	)
Other assets		1,054

Increase (Decrease) in Liabilities:
Payables:
Distribution fees		(61	)
Investment advisory fees		(30,918	)
Directors’ and Officer’s fees		1,502
Other affiliates		202
Interest expense and fees		(370	)
Variation margin on futures contracts		(195	)
Variation margin on centrally cleared swaps		(21,105	)
Board realignment and consolidation		(161,754	)
Other accrued expenses		20,902
Swap premiums received		(25	)

Net cash provided by operating activities		1,112,330


CASH USED FOR FINANCING ACTIVITIES
Cash dividends paid to shareholders		(408	)
Payments on redemption of capital shares		(15,678,883	)
Proceeds from issuance of capital shares		9,963,715
Net borrowing of reverse repurchase agreements		4,507,886
Increase in bank overdraft		8,133

Net cash used for financing activities		(1,199,557	)


CASH IMPACT FROM FOREIGN EXCHANGE FLUCTUATIONS
Cash impact from foreign exchange fluctuations		1,003


CASH AND FOREIGN CURRENCY
Net decrease in restricted and unrestricted cash and foreign currency		(86,224	)
Restricted and unrestricted cash and foreign currency at beginning of year		506,790

Restricted and unrestricted cash and foreign currency at end of year	$	420,566


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest expense	$	338,769


NON-CASH FINANCING ACTIVITIES
Capital shares issued in reinvestment of dividends and distributions paid to shareholders	$	1,373,725

See notes to financial statements.


FINANCIAL STATEMENTS			21

Statement of Cash Flows (continued)

Year Ended December 31, 2019


	Year Ended December 31,
	2019		2018

RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AND FOREIGN CURRENCY TO THE STATEMENT OF ASSETS AND LIABILITIES:
Cash	$	—	$	8,664
Cash pledged:
Futures contracts		62,710		110,710
Centrally cleared swaps		208,943		238,000
Foreign currency at value		148,913		149,416
	$	420,566	$	506,790

See notes to financial statements.


22		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Financial Highlights

(For a share outstanding throughout each period)


	BlackRock U.S. Government Bond V.I. Fund

	Class I

	Year Ended December 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	9.93		$	10.12		$	10.18		$	10.23		$	10.39

Net investment income ^(a)		0.23			0.21			0.16			0.15			0.15
Net realized and unrealized gain (loss)		0.40			(0.18	)		(0.01	)		(0.01	)		(0.10	)
Net increase from investment operations		0.63			0.03			0.15			0.14			0.05

Distributions from net investment income ^(b)		(0.24	)		(0.22	)		(0.21	)		(0.19	)		(0.21	)

Net asset value, end of year	$	10.32		$	9.93		$	10.12		$	10.18		$	10.23

Total Return ^(c)
Based on net asset value		6.36%			0.29%			1.52%			1.33%			0.45%

Ratios to Average Net Assets
Total expenses		1.70%			1.85%			1.31%			1.02%			0.96%
Total expenses after fees waived and/or reimbursed		1.31%			1.27%			1.01%			0.76%			0.73%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.74%			0.82%			0.87%			0.70%			0.70%
Net investment income		2.22%			2.10%			1.58%			1.43%			1.41%

Supplemental Data
Net assets, end of year (000)	$	53,865		$	54,820		$	65,100		$	72,433		$	83,016
Portfolio turnover rate ^(d)		699%			737%			1,052%			1,140%			1,581%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions. (d) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:


	Year Ended December 31,
	2019		2018		2017		2016		2015
Portfolio turnover rate (excluding MDRs)		445%		435%		681%		705%		991%

See notes to financial statements.


FINANCIAL HIGHLIGHTS			23

Financial Highlights (continued)

(For a share outstanding throughout each period)


	BlackRock U.S. Government Bond V.I. Fund
	Class III
	Year Ended December 31,
	2019			2018			2017			2016			2015

Net asset value, beginning of year	$	9.92		$	10.11		$	10.18		$	10.22		$	10.39
Net investment income ^(a)		0.19			0.18			0.13			0.11			0.13
Net realized and unrealized gain (loss)		0.42			(0.18	)		(0.02	)		—			(0.12	)
Net increase from investment operations		0.61			0.00			0.11			0.11			0.01

Distributions from net investment income ^(b)		(0.21	)		(0.19	)		(0.18	)		(0.15	)		(0.18	)

Net asset value, end of year	$	10.32		$	9.92		$	10.11		$	10.18		$	10.22

Total Return ^(c)
Based on net asset value		6.14%			(0.01)%			1.10%			1.08%			0.08%

Ratios to Average Net Assets
Total expenses		1.89%			2.03%			1.45%			1.27%			1.11%
Total expenses after fees waived and/or reimbursed		1.61%			1.57%			1.30%			1.08%			1.00%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.03%			1.13%			1.17%			1.01%			0.97%
Net investment income		1.86%			1.86%			1.30%			1.09%			1.27%

Supplemental Data
Net assets, end of year (000)	$	2,698		$	3,305		$	1,785		$	2,758		$	1,894
Portfolio turnover rate ^(d)		699%			737%			1,052%			1,140%			1,581%

^(a)	Based on average shares outstanding.

^(b)	Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

^(c)	Where applicable, excludes insurance-related fees and expenses and assumes the reinvestment of distributions.

^(d)	Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:


	Year Ended December 31,
	2019		2018		2017		2016		2015
Portfolio turnover rate (excluding MDRs)		445%		435%		681%		705%		991%

See notes to financial statements.


24		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements

1.	*ORGANIZATION*

BlackRock Variable Series Funds II, Inc. (the “Company”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Company is organized as a Maryland corporation that is comprised of 3 separate funds. The funds offer shares to insurance companies for their separate accounts to fund benefits under certain variable annuity and variable life insurance contracts. The financial statements presented are for BlackRock U.S. Government Bond V.I. Fund (the “Fund”). The Fund is classified as diversified. Class I and Class III Shares have identical voting, dividend, liquidation and other rights, except that only shares of the respective classes are entitled to vote on matters concerning only that class. In addition, Class III Shares bear certain expenses related to the distribution of such shares.

2.	*SIGNIFICANT ACCOUNTING POLICIES*

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed (the “trade dates”). Realized gains and losses on investment transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., dollar rolls, TBA sale commitments, futures contracts, forward foreign currency exchange contracts, options written and swaps) or certain borrowings (e.g., reverse repurchase transactions) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Board of Directors of the Fund (the “Board”), effective January 1, 2019, the directors who are not “interested persons” of the Fund, as defined in the 1940 Act (“Independent Directors”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Directors. This has the same economic effect for the Independent Directors as if the Independent Directors had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

Recent Accounting Standards: The Fund has adopted Financial Accounting Standards Board Accounting Standards Update 2017-08 to amend the amortization period for certain purchased callable debt securities held at a premium. Under the new standard, the Fund has changed the amortization period for the premium on certain purchased callable debt securities with non-contingent call features to the earliest call date. In accordance with the transition provisions of the standard, the Fund applied the amendments on a modified retrospective basis beginning with the fiscal period ended December 31, 2019. The adjusted cost basis of securities at December 31, 2018 is $71,887,218. This change in accounting policy has been made to comply with the newly issued accounting standard and had no impact on accumulated earnings (loss) or the net asset value of the Fund.


NOTES TO FINANCIAL STATEMENTS			25

Notes to Financial Statements (continued)

3.	*INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS*

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

•

Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

•

Futures contracts traded on exchanges are valued at their last sale price.

•

To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services.

•

Level 1 — Unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

•


26		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

curves, volatilities, prepayment speeds, loss severities, credit risks and default rates) or other market–corroborated inputs)

•

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.	*SECURITIES AND OTHER INVESTMENTS*

For mortgage pass-through securities (the “Mortgage Assets”) there are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury. Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks.

Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Inflation-Indexed Bonds: Inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) are fixed income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statement of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.


NOTES TO FINANCIAL STATEMENTS			27

Notes to Financial Statements (continued)

including issuer, rate and mortgage terms. When entering into TBA commitments, a fund may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

Mortgage Dollar Roll Transactions: The fund may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and realizes gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.

Reverse Repurchase Agreements: Reverse repurchase agreements are agreements with qualified third party broker-dealers in which a fund sells securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. A fund receives cash from the sale to use for other investment purposes. During the term of the reverse repurchase agreement, a fund continues to receive the principal and interest payments on the securities sold. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. A fund may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk. If a fund suffers a loss on its investment of the transaction proceeds from a reverse repurchase agreement, a fund would still be required to pay the full repurchase price. Further, a fund remains subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, a fund would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

For the year ended December 31, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Fund were $14,896,647 and 2.25%, respectively.

Reverse repurchase transactions are entered into by a fund under Master Repurchase Agreements (each, an “MRA”), which permit a fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from a fund. With reverse repurchase transactions, typically a fund and counterparty under an MRA are permitted to sell, re-pledge, or use the collateral associated with the transaction. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, a fund receives or posts securities and cash as collateral with a market value in excess of the repurchase price to be paid or received by a fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, a fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.

As of period end, the following table is a summary of the Fund’s open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis:


Counterparty	Reverse Repurchase Agreements			Fair Value of Non-cash Collateral Pledged Including Accrued Interest^(a)		Cash Collateral Pledged/Received		Net Amount^(b)
Bank of America Securities, Inc.	$	(13,872,602	)	$	13,863,508	$	—	$	(9,094	)
J.P. Morgan Securities LLC		(5,183,706	)		5,183,706		—		—

	$	(19,056,308)		$	19,047,214	$	—	$	(9,094	)

^(a)

Collateral with a value of $19,049,227 has been pledged in connection with open reverse repurchase agreements. Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(b)

Net amount represents the net amount payable due to the counterparty in the event of default.


28		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

5.	*DERIVATIVE FINANCIAL INSTRUMENTS*

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statement of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount reflected in the Statement of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statement of Assets and Liabilities.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value —unaffiliated and options written at value, respectively, in the Statement of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statement of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statement of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Fund writes a call option, such option is typically “covered,” meaning that it holds the underlying instrument subject to being called by the option counterparty. When the Fund writes a put option, cash is segregated in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statement of Assets and Liabilities.

•

Interest rate caps — Interest rate caps are entered into to gain or reduce exposure to interest rates (interest rate risk). Caps are agreements whereby one party agrees to make payments to the other, in return for a premium, to the extent that interest rate indexes exceed a specified rate, or “cap.” The maximum potential amount of future payments that the Fund would be required to make under an interest rate cap would be the notional amount times the percentage increase in interest rates determined by the difference between the interest rate index current value and the value at the time the cap was entered into.

•

Barrier options — The Fund may purchase and write a variety of options with non-standard payout structures or other features (“barrier options”) that are generally traded OTC.


NOTES TO FINANCIAL STATEMENTS			29

Notes to Financial Statements (continued)

The Fund may invest in various types of barrier options, including down-and-out options, down-and-in options, double no-touch options, one-touch options, up-and-out options and up-and-in options. Down-and-out options expire worthless to the purchaser if the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Down-and-in options expire worthless to the purchaser unless the price of the underlying instrument falls below a specific barrier price level prior to the expiration date. Double no-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument does not reach or surpass predetermined barrier price levels prior to the option’s expiration date. One-touch options provide the purchaser an agreed-upon payout if the price of the underlying instrument reaches or surpasses predetermined barrier price levels prior to the expiration date. Up-and-out options expire worthless to the purchaser if the price of the underlying instrument increases beyond a predetermined barrier price level prior to the expiration date. Up-and-in options can only be exercised when the price of the underlying instrument increases beyond a predetermined barrier price level.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Fund’s counterparty on the swap agreement becomes the CCP. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statement of Operations.

•

Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

•


30		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, the Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statement of Assets and Liabilities.

6.	*INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES*

Investment Advisory: The Company, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”) to provide investment advisory and administrative services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:



Average Daily Net Assets	Investment Advisory Fees

First $1 Billion		0.50%
$1 Billion - $3 Billion		0.47
$3 Billion - $5 Billion		0.45
$5 Billion - $10 Billion		0.44
Greater than $10 Billion		0.43

For the year ended December 31, 2019, the class specific distribution fees borne directly by Class III were $9,561.

Transfer Agent: On behalf of the Fund, the Manager entered into agreements with insurance companies and other financial intermediaries (“Service Organizations”), some of which may be affiliates. Pursuant to these agreements, the Service Organizations provide the Fund with administrative, networking, recordkeeping, sub-transfer agency and shareholder services to underlying investor accounts. For these services, the Service Organizations receive an annual fee per shareholder account, which will vary depending on share class and/or net assets of Fund shareholders serviced by the Service Organizations which is shown as transfer agent — class specific. For the year ended December 31, 2019, the Fund did not pay any amounts to affiliates in return for these services.

For the year ended December 31, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:


Class I	$	112,153
Class III		5,899
	$	118,052

Expense Limitations, Waivers and Reimbursements: Effective July 3, 2019, the Manager voluntarily agreed to waive 0.26% of its investment advisory fee paid by the Fund. Prior to July 3, 2019, the Manager voluntarily agreed to waive 0.10% of its investment advisory fee paid by the Fund. This voluntary waiver may be reduced or discontinued at any time without notice. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2019, the amount waived was $105,768.


NOTES TO FINANCIAL STATEMENTS			31

Notes to Financial Statements (continued)

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended December 31, 2019, the amount waived was $1,105.

For the year ended December 31, 2019, the Fund reimbursed the Manager $743 for certain accounting services, which is included in accounting services in the Statement of Operations.

The Manager has contractually agreed to reimburse certain transfer agent fees in order to limit such expenses to a percentage of average daily net assets as follows:


Class I	0.00	%
Class III	0.06


	Transfer Agent Fees Waived and/or Reimbursed
Class I		$ 112,153
Class III		3,605
		$ 115,758

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:


Class I	1.25	%
Class III	1.50

lnterfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), the Fund may participate in a joint lending and borrowing facility for temporary purposes (the “lnterfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. The Fund is currently permitted to borrow under the lnterfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets, to any one borrowing fund through the lnterfund Lending Program. A borrowing BlackRock fund may not borrow through the lnterfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended December 31, 2019, the Fund did not participate in the lnterfund Lending Program.

7.	*PURCHASES AND SALES*

For the year ended December 31, 2019, purchases and sales of investments, including paydowns and mortgage dollar rolls and excluding short-term securities, were as follows:


	Purchases		Sales
Non-U.S. Government Securities	$	417,865,242	$	414,121,229
U.S. Government Securities		65,666,343		64,868,085


32		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

For the year ended December 31, 2019, purchases and sales related to mortgage dollar rolls were $173,603,724 and $173,711,513, respectively.

8.	*INCOME TAX INFORMATION*

The tax character of distributions paid was as follows:


	12/31/19		12/31/18
Ordinary income	$	1,353,765	$	1,317,434

As of period end, the tax components of accumulated loss were as follows:



Undistributed ordinary income	$	279,273
Non-expiring capital loss carryforwards ^(a)		(4,638,280)
Net unrealized gains ^(b)		840,185

	$	(3,518,822)

^(a)	Amounts available to offset future realized capital gains.

^(b)

During the year ended December 31, 2019, the Fund utilized $588,227 of its capital loss carryforward.

As of December 31, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:



Tax cost	$	84,724,041

Gross unrealized appreciation	$	1,861,953
Gross unrealized depreciation		(1,012,746)

Net unrealized appreciation	$	849,207

9.	*BANK BORROWINGS*

10.

PRINCIPAL RISKS


NOTES TO FINANCIAL STATEMENTS			33

Notes to Financial Statements (continued)

The Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force the Fund to reinvest in lower yielding securities. The Fund may also be exposed to reinvestment risk, which is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below the Fund portfolio’s current earnings rate.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

With exchange-traded options purchased and futures and centrally cleared swaps, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: The Fund invests a significant portion of its assets in fixed income securities and/or uses derivatives tied to the fixed income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed income securities will increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:


	Year Ended 12/31/19						Year Ended 12/31/18
	Shares			Amount			Shares			Amount
Class I
Shares sold		306,520		$	3,139,125			227,543		$	2,244,550
Shares issued in reinvestment of distributions		127,398			1,295,840			126,644			1,252,195
Shares redeemed		(736,860	)		(7,515,644	)		(1,268,374	)		(12,548,771	)
Net decrease		(302,942	)	$	(3,080,679	)		(914,187	)	$	(9,052,026	)

Class III
Shares sold		674,859		$	6,868,096			407,411		$	4,028,833
Shares issued in reinvestment of distributions		7,647			77,885			4,147			40,897
Shares redeemed		(754,061	)		(7,692,662	)		(255,082	)		(2,513,704	)
Net increase (decrease)		(71,555	)	$	(746,681	)		156,476		$	1,556,026
Total Net Decrease		(374,497	)	$	(3,827,360	)		(757,711	)	$	(7,496,000	)

As of December 31, 2019, BlackRock HoldCo 2, Inc., an affiliate of the Fund, owned 1,963 Class III Shares of BlackRock U.S. Government Bond V.I. Fund.


34		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Notes to Financial Statements (continued)

12.

SUBSEQUENT EVENTS


NOTES TO FINANCIAL STATEMENTS			35

Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock U.S. Government Bond V.I. Fund and the Board of Directors of BlackRock Variable Series Funds II, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of BlackRock U.S. Government Bond V.I. Fund of BlackRock Variable Series Funds II, Inc. (the “Fund”), including the schedule of investments, as of December 31, 2019, the related statements of operations and cash flows for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2019, and the results of its operations and its cash flows for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

February 14, 2020

We have served as the auditor of one or more BlackRock investment companies since 1992.


36		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Glossary of Terms Used in this Report

Currency



BRL		Brazilian Real

CAD		Canadian Dollar

COP		Colombian Peso

JPY		Japanese Yen

KRW		South Korean Won

MXN		Mexican Peso

RUB		New Russian Ruble

USD		United States Dollar

ZAR		South African Rand

Portfolio Abbreviations



BA		Canadian Bankers Acceptances

BZDIOVER		Overnight Brazil CETIP — Interbank Rate

LIBOR		London Interbank Offered Rate

MXIBTIIE		Mexico Interbank TIIE 28-Day

OTC		Over-the-counter

TBA		To-be-announced


GLOSSARY OF TERMS USED IN THIS REPORT			37


Disclosure of Sub-Advisory Agreements

The Board of Directors (the “Board,” and the members of which are referred to as “Board Members”) of BlackRock Variable Series Funds II, Inc. (the “Corporation”), on behalf of its series BlackRock Total Return V.I. Fund (the “Fund”), met in person on July 29, 2019 (the “July Meeting”) to consider the initial approval of the sub-advisory agreements (the “Sub-Advisory Agreements”) between BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor, and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited with respect to the Fund. The Sub-Advisory Agreements were substantially similar to the sub-advisory agreements previously approved with respect to certain other portfolios in the BlackRock Fixed-Income Complex.

On the date of the July Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of the Corporation as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). Pursuant to the 1940 Act, the Board is required to consider the initial approval of the Sub-Advisory Agreements.

At the July Meeting, the Board reviewed materials relating to its consideration of the proposed Sub-Advisory Agreements. The Fund’s investment advisory agreement with the Manager was most recently approved by the Board at in-person meetings on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”). A discussion of the basis for the Board’s approval of this agreement at the May and June Meetings is included in the Fund’s semi-annual shareholder report for the fiscal period ended June 30, 2019. The factors considered by the Board at the July Meeting in connection with approval of the proposed Sub-Advisory Agreements were substantially the same as the factors considered at the May and June Meetings.

Following discussion, all the Board Members present at the July Meeting, including all the Independent Board Members present, approved the Sub-Advisory Agreements between the Manager and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited with respect to the Fund for a two-year term beginning on the effective date of the Sub-Advisory Agreements. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of the Sub-Advisory Agreements were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Sub-Advisory Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.


DISCLOSURE OF SUB-ADVISORY AGREEMENTS

Statement Regarding Liquidity Risk Management Program

The Securities and Exchange Commission adopted Rule 22e-4 under the Investment Company Act of 1940, as amended (the “Liquidity Rule”) to promote effective liquidity risk management throughout the open-end investment company industry, thereby reducing the risk that funds will be unable to meet their redemption obligations and mitigating dilution of the interests of fund shareholders.

The Board of Directors (the “Board”) of BlackRock Variable Series Funds, Inc., on behalf of BlackRock 60/40 Target Allocation ETF V.I. Fund, BlackRock Advantage Large Cap Core V.I. Fund, BlackRock Advantage Large Cap Value V.I. Fund, BlackRock Advantage U.S. Total Market V.I. Fund, BlackRock Basic Value V.I. Fund, BlackRock Capital Appreciation V.I. Fund, BlackRock Equity Dividend V.I. Fund, BlackRock Global Allocation V.I. Fund, BlackRock International Index V.I. Fund, BlackRock International V.I. Fund, BlackRock Large Cap Focus Growth V.I. Fund, BlackRock Managed Volatility V.I. Fund, BlackRock S&P 500 Index V.I. Fund and BlackRock Small Cap Index V.I. Fund met on November 12-13, 2019 and the Board of BlackRock Variable Series Funds II, Inc., on behalf of BlackRock High Yield V.I. Fund, BlackRock Total Return V.I. Fund and BlackRock U.S. Government Bond V.I. Fund met on November 14-15, 2019 (each, the “Meeting”) to review the liquidity risk management program (the “Program”) applicable to the BlackRock open-end funds, excluding money market funds (each, a “Fund”), pursuant to the Liquidity Rule. The Board has appointed BlackRock Advisors, LLC or BlackRock Fund Advisors (“BlackRock”), each an investment adviser to certain Funds, as the program administrator for each Fund’s Program, as applicable. BlackRock has delegated oversight of the Program to the 40 Act Liquidity Risk Management Committee (the “Committee”). At the Meeting, the Committee, on behalf of BlackRock, provided the Board with a report that addressed the operation of the Program and assessed its adequacy and effectiveness of implementation, including the operation of each Fund’s Highly Liquid Investment Minimum (“HLIM”) where applicable, and any material changes to the Program (the “Report”). The Report covered the period from December 1, 2018 through September 30, 2019 (the “Program Reporting Period”).

The Report described the Program’s liquidity classification methodology for categorizing a Fund’s investments (including derivative transactions) into one of four liquidity buckets. It also described BlackRock’s methodology in establishing a Fund’s HLIM and noted that the Committee reviews and ratifies the HLIM assigned to each Fund no less frequently than annually.

The Report noted that the Program complied with the key factors for consideration under the Liquidity Rule for assessing, managing and periodically reviewing a Fund’s liquidity risk, as follows:

A. The Fund’s investment strategy and liquidity of portfolio investments during both normal and reasonably foreseeable stressed conditions: During the Program Reporting Period, the Committee reviewed whether each Fund’s strategy is appropriate for an open-end fund structure with a focus on Funds with more significant and consistent holdings of less liquid and illiquid assets. The Committee also factored a Fund’s concentration in an issuer into the liquidity classification methodology by taking issuer position sizes into account. Where a Fund participated in borrowings for investment purposes (such as tender option bonds and reverse repurchase agreements), such borrowings were factored into the Program’s calculation of a Fund’s liquidity bucketing. Derivative exposure was also considered in such calculation.

B. Short-term and long-term cash flow projections during both normal and reasonably foreseeable stressed conditions: During the Program Reporting Period, the Committee reviewed historical net redemption activity, and used this information as a component to establish each Fund’s reasonably anticipated trading size (“RATS”). Each Fund has adopted an in-kind redemption policy which may be utilized to meet larger redemption requests. The Committee may also take into consideration a Fund’s shareholder ownership concentration (which, depending on product type and distribution channel, may or may not be available), a Fund’s distribution channels, and the degree of certainty associated with a Fund’s short-term and long-term cash flow projections.

C. Holdings of cash and cash equivalents, as well as borrowing arrangements: The Committee considered the terms of the credit facility applicable to the Funds, the financial health of the institution providing the facility and the fact that the credit facility is shared among multiple Funds (including that a portion of the aggregate commitment amount is specifically designated for BlackRock Floating Rate Income Portfolio and BlackRock Credit Strategies Income Fund, each a series of BlackRock Funds V). The Committee also considered other types of borrowing available to the Funds, such as the ability to use reverse repurchase agreements and interfund lending, as applicable.

There were no material changes to the Program during the Program Reporting Period. The Report provided to the Board stated that the Committee concluded that based on the operation of the functions, as described in the Report, the Program is operating as intended and is effective in implementing the requirements of the Liquidity Rule.


		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

BlackRock Variable Series Funds, Inc.

Independent Directors^(a)



Name Year of Birth ^(b)	Position(s) Held (Length of Service) ^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Mark Stalnecker 1951	Chair of the Board and Director (Since 2019)	Chief Investment Officer, University of Delaware from 1999 to 2013; Trustee and Chair of the Finance and Investment Committees, Winterthur Museum and Country Estate from 2005 to 2016; Member of the Investment Committee, Delaware Public Employees’ Retirement System since 2002; Member of the Investment Committee, Christiana Care Health System from 2009 to 2017; Member of the Investment Committee, Delaware Community Foundation from 2013 to 2014; Director and Chair of the Audit Committee, SEI Private Trust Co. from 2001 to 2014.	37 RICs consisting of 177 Portfolios	None
Bruce R. Bond 1946	Director (Since 2007)	Board Member, Amsphere Limited (software) since 2018; Trustee and Member of the Governance Committee, State Street Research Mutual Funds from 1997 to 2005; Board Member of Governance, Audit and Finance Committee, Avaya Inc. (computer equipment) from 2003 to 2007.	37 RICs consisting of 177 Portfolios	None
Susan J. Carter 1956	Director (Since 2019)	Director, Pacific Pension Institute from 2014 to 2018; Advisory Board Member, Center for Private Equity and Entrepreneurship at Tuck School of Business since 1997; Senior Advisor, Commonfund Capital, Inc. (“CCI”) (investment adviser) in 2015; Chief Executive Officer, CCI from 2013 to 2014; President & Chief Executive Officer, CCI from 1997 to 2013; Advisory Board Member, Girls Who Invest from 2015 to 2018 and Board Member thereof since 2018; Advisory Board Member, Bridges Fund Management since 2016; Trustee, Financial Accounting Foundation since 2017; Practitioner Advisory Board Member, Private Capital Research Institute (“PCRI”) since 2017.	37 RICs consisting of 177 Portfolios	None
Collette Chilton 1958	Director (Since 2019)	Chief Investment Officer, Williams College since 2006; Chief Investment Officer, Lucent Asset Management Corporation from 1998 to 2006.	37 RICs consisting of 177 Portfolios	None
Neil A. Cotty 1954	Director (Since 2019)	Bank of America Corporation from 1996 to 2015, serving in various senior finance leadership roles, including Chief Accounting Officer from 2009 to 2015, Chief Financial Officer of Global Banking, Markets and Wealth Management from 2008 to 2009, Chief Accounting Officer from 2004 to 2008, Chief Financial Officer of Consumer Bank from 2003 to 2004, Chief Financial Officer of Global Corporate Investment Bank from 1999 to 2002.	37 RICs consisting of 177 Portfolios	None
Lena G. Goldberg 1949	Director (Since 2016)	Senior Lecturer, Harvard Business School, since 2008; Director, Charles Stark Draper Laboratory, Inc. since 2013; FMR LLC/ Fidelity Investments (financial services) from 1996 to 2008, serving in various senior roles including Executive Vice President - Strategic Corporate Initiatives and Executive Vice President and General Counsel; Partner, Sullivan & Worcester LLP from 1985 to 1996 and Associate thereof from 1979 to 1985.	37 RICs consisting of 177 Portfolios	None
Robert M. Hernandez 1944	Director (Since 2007)	Director, Vice Chairman and Chief Financial Officer of USX Corporation (energy and steel business) from 1991 to 2001; Director and non-executive Chairman, RTI International Metals, Inc. from 1990 to 2015; Director, TE Connectivity (electronics) from 2006 to 2012.	37 RICs consisting of 177 Portfolios	Chubb Limited (insurance company); Eastman Chemical Company


DIRECTOR AND OFFICER INFORMATION

Director and Officer Information (continued)

Independent Directors^(a) (continued)



Name Year of Birth ^(b)	Position(s) Held (Length of Service) ^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Henry R. Keizer 1956	Director (Since 2016)	Director, Park Indemnity Ltd. (captive insurer) since 2010; Director, MUFG Americas Holdings Corporation and MUFG Union Bank, N.A. (financial and bank holding company) from 2014 to 2016; Director, American Institute of Certified Public Accountants from 2009 to 2011; Director, KPMG LLP (audit, tax and advisory services) from 2004 to 2005 and 2010 to 2012; Director, KPMG International in 2012, Deputy Chairman and Chief Operating Officer thereof from 2010 to 2012 and U.S. Vice Chairman of Audit thereof from 2005 to 2010; Global Head of Audit, KPMGI (consortium of KPMG firms) from 2006 to 2010; Director, YMCA of Greater New York from 2006 to 2010.	37 RICs consisting of 177 Portfolios	Hertz Global Holdings (car rental); Montpelier Re Holdings, Ltd. (publicly held property and casualty reinsurance) from 2013 until 2015; Sealed Air Corp. (packaging); WABCO (commercial vehicle safety systems)
Cynthia A. Montgomery 1952	Director (Since 2019)	Professor, Harvard Business School since 1989.	37 RICs consisting of 177 Portfolios	Newell Rubbermaid, Inc. (manufacturing)
Donald C. Opatrny 1952	Director (Since 2015)	Trustee, Vice Chair, Member of the Executive Committee and Chair of the Investment Committee, Cornell University since 2004; President, Trustee and Member of the Investment Committee, The Aldrich Contemporary Art Museum from 2007 to 2014; Member of the Board and Investment Committee, University School from 2007 to 2018; Member of the Investment Committee, Mellon Foundation from 2009 to 2015; Trustee, Artstor (a Mellon Foundation affiliate) from 2010 to 2015; President and Trustee, the Center for the Arts, Jackson Hole from 2011 to 2018; Director, Athena Capital Advisors LLC (investment management firm) since 2013; Trustee and Chair of the Investment Committee, Community Foundation of Jackson Hole since 2014; Member of Affordable Housing Supply Board of Jackson, Wyoming since 2018; Member, Investment Funds Committee, State of Wyoming since 2017; Trustee, Phoenix Art Museum since 2018.	37 RICs consisting of 177 Portfolios	None
Joseph P. Platt 1947	Director (Since 2019)	General Partner, Thorn Partners, LP (private investments) since 1998; Director, WQED Multi-Media (public broadcasting not-for-profit) since 2001; Chair, Basic Health International (non-profit) since 2015.	37 RICs consisting of 177 Portfolios	Greenlight Capital Re, Ltd. (reinsurance company); Consol Energy Inc.
Kenneth L. Urish 1951	Director (Since 2019)	Managing Partner, Urish Popeck & Co., LLC (certified public accountants and consultants) since 1976; Past-Chairman of the Professional Ethics Committee of the Pennsylvania Institute of Certified Public Accountants and Committee Member thereof since 2007; Member of External Advisory Board, The Pennsylvania State University Accounting Department since founding in 2001; Principal, UP Strategic Wealth Investment Advisors, LLC since 2013; Trustee, The Holy Family Institute from 2001 to 2010; President and Trustee, Pittsburgh Catholic Publishing Associates from 2003 to 2008; Director, Inter-Tel from 2006 to 2007.	37 RICs consisting of 177 Portfolios	None
Claire A. Walton 1957	Director (Since 2019)	Chief Operating Officer and Chief Financial Officer of Liberty Square Asset Management, LP from 1998 to 2015; General Partner of Neon Liberty Capital Management, LLC since 2003; Director, Boston Hedge Fund Group from 2009 to 2018; Director, Woodstock Ski Runners since 2013; Director, Massachusetts Council on Economic Education from 2013 to 2015.	37 RICs consisting of 177 Portfolios	None


		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (continued)



		Interested Directors ^(a)(d)

Name Year of Birth ^(b)	Position(s) Held (Length of Service) ^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Robert Fairbairn 1965	Director (Since 2015)	Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares^®businesses from 2012 to 2016.	123 RICs consisting of 287 Portfolios	None
John M. Perlowski ^(e) 1964	Director (Since 2015); President and Chief Executive Officer (Since 2010)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.	124 RICs consisting of 288 Portfolios	None

^(a)	The address of each Director is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

^(b)

Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Company’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Directors who are “interested persons,” as defined in the 1940 Act, serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Company’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate.

^(c)

Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. In addition, effective January 1, 2019, three BlackRock Fund Complexes were realigned and consolidated into two BlackRock Fund Complexes. As a result, although the chart shows the year that each Independent Director joined the Board, certain Independent Directors first became members of the boards of other BlackRock-advised Funds, legacy MLIM funds or legacy BlackRock funds as follows: Bruce R. Bond, 2005; Susan J. Carter, 2016; Collette Chilton, 2015; Neil A. Cotty, 2016; Robert M. Hernandez, 1996; Cynthia A. Montgomery, 1994; Joseph P. Platt, 1999; Mark Stalnecker, 2015; Kenneth L. Urish, 1999; Claire A. Walton, 2016.

^(d)	Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Company based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Fixed-Income Complex.

^(e)	Mr. Perlowski is also a trustee of the BlackRock Credit Strategies Fund.


DIRECTOR AND OFFICER INFORMATION

Director and Officer Information (continued)

Officers Who Are Not Directors ^(a)



Name Year of Birth^(b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years
Jennifer McGovern 1977	Vice President (Since 2014)	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Product Development and Oversight for BlackRock’s Strategic Product Management Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews 1966	Chief Financial Officer (Since 2007)	Chief Financial Officer of the iShares^®exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife 1970	Treasurer (Since 2007)	Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares^®Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares^®exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle 1968	Anti-Money Laundering Compliance Officer (Since 2019)	Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn 1975	Secretary (Since 2019)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

^(a)	The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

^(b)	Officers of the Company serve at the pleasure of the Board.

Effective September 19, 2019, Lisa Belle replaced John MacKessy as the Anti-Money Laundering Compliance Officer of the Company.

Effective September 19, 2019, Janey Ahn replaced Benjamin Archibald as the Secretary of the Company.

Effective December 31, 2019, Robert M. Hernandez retired as Director of the Company.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers

BlackRock International Limited ^(a)

Edinburgh, EH3 8BL

United Kingdom

BlackRock Asset Management ^(c)

North Asia Limited

Hong Kong

BlackRock (Singapore) Limited ^(c)

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodians

JPMorgan Chase Bank, N.A.

New York, NY 10179

Brown Brothers Harriman & Co. ^(b)

Boston, MA 02109

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

^(a)	For BlackRock International V.I. Fund and BlackRock Managed Volatility V.I. Fund.

^(b)	For BlackRock Global Allocation V.I. Fund, BlackRock International V.I. Fund and BlackRock Large Cap Focus Growth V.I. Fund.

^(c)	For BlackRock Managed Volatility V.I. Fund.


		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information

BlackRock Variable Series Funds II, Inc.

Independent Directors ^(a)



Name Year of Birth ^(b)	Position(s) Held (Length of Service) ^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
Richard E. Cavanagh 1946	Co-Chair of the Board and Director (Since 2019)	Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.	86 RICs consisting of 110 Portfolios	None
Karen P. Robards 1950	Co-Chair of the Board and Director (Since 2019)	Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987.	86 RICs consisting of 110 Portfolios	Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017
Michael J. Castellano 1946	Director (Since 2019)	Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015.	86 RICs consisting of 110 Portfolios	None
Cynthia L. Egan 1955	Director (Since 2019)	Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007.	86 RICs consisting of 110 Portfolios	Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016
Frank J. Fabozzi ^(d) 1948	Director (Since 2019)	Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011.	87 RICs consisting of 111 Portfolios	None
Henry Gabbay 1947	Director (Since 2007)	Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity and BlackRock Closed-End Fund Boards from 2007 through 2014; Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	86 RICs consisting of 110 Portfolios	None
R. Glenn Hubbard 1958	Director (Since 2019)	Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988.	86 RICs consisting of 110 Portfolios	ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014


DIRECTOR AND OFFICER INFORMATION

Director and Officer Information (continued)


Independent Directors^(a)^(continued)

Name Year of Birth ^(b)	Position(s) Held (Length of Service)^(c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships Held During Past Five Years
W. Carl Kester ^(d) 1951	Director (Since 2019)	George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.	87 RICs consisting of 111 Portfolios	None
Catherine A. Lynch^(d) 1961	Director (Since 2019)	Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999.	87 RICs consisting of 111 Portfolios	None

Interested Directors^(a)(e)
Robert Fairbairn 1965	Director (Since 2015)	Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares^®businesses from 2012 to 2016.	123 RICs consisting of 287 Portfolios	None
John M. Perlowski^(d) 1964	Director (Since 2015); President and Chief Executive Officer (Since 2010)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.	124 RICs consisting of 288 Portfolios	None

^(a)	The address of each Director is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

^(b)

Each Independent Director holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Company’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Directors who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Company’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Directors on a case-by-case basis, as appropriate.

^(c)

Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Directors first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. Certain other Independent Directors became members of the boards of the closed-end funds in the Fixed-Income Complex as follows: Michael J. Castellano, 2011; Cynthia L. Egan, 2016; and Catherine A. Lynch, 2016.

^(d)	Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund.

^(e)	Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Company based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.


		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Director and Officer Information (continued)


Officers Who Are Not Directors ^(a)

Name Year of Birth^(b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years
Jennifer McGovern 1977	Vice President (Since 2014)	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Product Development and Oversight for BlackRock’s Strategic Product Management Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews 1966	Chief Financial Officer (Since 2007)	Chief Financial Officer of the iShares^®exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife 1970	Treasurer (Since 2007)	Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares^®Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares^®exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle 1968	Anti-Money Laundering Compliance Officer (Since 2019)	Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn 1975	Secretary (Since 2019)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.

^(a)	The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055.

^(b)	Officers of the Company serve at the pleasure of the Board.

Further information about the Company’s Directors and Officers is available in the Company’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Effective September 4, 2019, Janey Ahn replaced Benjamin Archibald as the Secretary of the Company.

Effective September 5, 2019, Lisa Belle replaced John MacKessy as the Anti-Money Laundering Compliance Officer of the Company.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers^(a)

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

BlackRock (Singapore) Limited

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Funds

100 Bellevue Parkway

Wilmington, DE 19809

^(a)	For BlackRock Total Return V.I. Fund.


DIRECTOR AND OFFICER INFORMATION

Additional Information

General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds (except BlackRock Government Money Market V.I. Fund) file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at sec.gov. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

The BlackRock Government Money Market V.I. Fund files its complete schedule of portfolio holdings with the SEC each month on Form N-MFP. The Fund’s reports on Form N-MFP are available on the SEC’s website at sec.gov. The Fund makes portfolio holdings available to shareholders on its website at blackrock.com.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) at blackrock.com/prospectus/insurance; and (3) on the SEC’s website at sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at blackrock.com/prospectus/insurance or by calling (800) 441-7762 and (2) on the SEC’s website at sec.gov.

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed-income and tax-exempt investing. Visit blackrock.com for more information.

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

Investor class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.


		2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Additional Information (continued)

BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.


ADDITIONAL INFORMATION

Want to know more?

blackrock.com | 877-275-1255 (1-877-ASK-1BLK)

This report is only for distribution to shareholders of the Funds of BlackRock Variable Series Funds, Inc. and BlackRock Variable Series Funds II, Inc. Past performance results shown in this report should not be considered a representation of future performance. Investment return and principal value of non-money market fund shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. You could lose money by investing in the Funds. Although BlackRock Government Money Market V.I. Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in BlackRock Government Money Market V.I. Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. BlackRock Government Money Market V.I. Fund’s sponsor has no legal obligation to provide financial support to the Fund at any time. Performance data quoted represents past performance and does not guarantee future results. Total return information assumes reinvestment of all distributions. Current performance may be higher or lower than the performance data quoted. For current month-end performance information, call (800) 626-1960. BlackRock Government Money Market V.I. Fund’s current 7-day yield more closely reflects the current earnings of the Fund than the total returns quoted. Statements and other information herein are as dated and are subject to change.

VS-12/19-AR


Item 2 –		Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 –		Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

		Michael Castellano
		Frank J. Fabozzi
		Henry Gabbay
		Catherine A. Lynch
		Karen P. Robards

		The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

		Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

		Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 –		Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:


	(a) Audit Fees		(b) Audit-Related Fees¹		(c) Tax Fees²		(d) All Other Fees
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock High Yield V.I. Fund	$39,984	$39,984	$0	$0	$14,000	$14,000	$0	$0
BlackRock Total Return V.I. Fund	$50,898	$50,898	$750	$0	$15,400	$15,400	$0	$0
BlackRock U.S. Government Bond V.I. Fund	$38,352	$38,352	$0	$0	$15,400	$15,400	$0	$0


		The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):


	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees¹	$0	$0
(c) Tax Fees²	$0	$0
(d) All Other Fees³	$2,050,500	$2,274,000

¹ The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

² The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

³ Non-audit fees of $2,050,500 and $2,274,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.


(e)(1) Audit Committee Pre-Approval Policies and Procedures:
		The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

		Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved


		subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

		(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

		(f) Not Applicable

		(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:


Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock High Yield V.I. Fund	$14,000	$14,000
BlackRock Total Return V.I. Fund	$16,150	$15,400
BlackRock U.S. Government Bond V.I. Fund	$15,400	$15,400


		Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:


Current Fiscal Year End		Previous Fiscal Year End
$2,050,500		$2,274,000


		These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

		(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 –		Audit Committee of Listed Registrants – Not Applicable

Item 6 –		Investments
		(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

		(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.



Item 7 –		Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 –		Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 –		Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 –		Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 –		Controls and Procedures

		(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

		(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –		Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable to the registrant.

Item 13 –		Exhibits attached hereto

		(a)(1) Code of Ethics – See Item 2

		(a)(2) Certifications – Attached hereto

		(a)(3) Not Applicable

		(a)(4) Not Applicable

		(b) Certifications – Attached hereto

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


BlackRock Variable Series Funds II, Inc.

By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Variable Series Funds II, Inc.

Date: February 28, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.


By:		/s/ John M. Perlowski
		John M. Perlowski
		Chief Executive Officer (principal executive officer) of
		BlackRock Variable Series Funds II, Inc.

Date: February 28, 2020


By:		/s/ Neal J. Andrews
		Neal J. Andrews
		Chief Financial Officer (principal financial officer) of
		BlackRock Variable Series Funds II, Inc.

Date: February 28, 2020

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, John M. Perlowski, Chief Executive Officer (principal executive officer) of BlackRock Variable Series Funds II, Inc., certify that:

1. I have reviewed this report on Form N-CSR of BlackRock Variable Series Funds II, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 28, 2020


/s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Variable Series Funds II, Inc.

EX-99. CERT

CERTIFICATION PURSUANT TO RULE 30a-2(a) UNDER THE 1940 ACT AND SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Neal J. Andrews, Chief Financial Officer (principal financial officer) of BlackRock Variable Series Funds II, Inc., certify that:

1. I have reviewed this report on Form N-CSR of BlackRock Variable Series Funds II, Inc.;

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: February 28, 2020


/s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of BlackRock Variable Series Funds II, Inc.

Exhibit 99.906CERT

Certification Pursuant to Rule 30a-2(b) under the 1940 Act and

Section 906 of the Sarbanes-Oxley Act of 2002

Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Variable Series Funds II, Inc. (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant’s Report on Form N-CSR for the period ended December 31, 2019 (the “Report”) fully complies with the requirements of Section 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

Date: February 28, 2020


/s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Variable Series Funds II, Inc.

Date: February 28, 2020


/s/ Neal J. Andrews
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Variable Series Funds II, Inc.

This certification is being furnished pursuant to Rule 30a-2(b) under the Investment Company Act of 1940, as amended, and 18 U.S.C. § 1350 and is not being filed as part of the Form N-CSR with the Securities and Exchange Commission.