Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.

BlackRock Funds^SM

Table of Contents

Investment Objective

BlackRock Advantage Emerging Markets Fund’s (the “Fund”) investment objective is to seek long-term capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended April 30, 2021, the Fund outperformed its benchmark, the MSCI Emerging Markets Index.

What factors influenced performance?

Overall, the Fund performed well in a generally favorable market environment. Emerging market (“EM”) equities got off to a strong start, buoyed by U.S. dollar weakness, and continued to benefit from the broader reopening theme throughout the first half of the period. During the fourth quarter of 2020, however, momentum styles experienced their sharpest drawdown since the global financial crisis, as investors shifted to cyclical exposures due to positive news on COVID-19 vaccine development.

As 2021 began, EM equities regained their upward momentum, driven by reflationary trends that made investors more risk tolerant as well as by vaccine rollouts. EM equities outperformed their developed market (“DM”) counterparts until February 2021, when a sudden spike in U.S. interest rates in response to inflationary pressures weighed on the market. This ultimately benefited styles focusing on reflationary trends, especially within the energy and financials sectors, as value outperformed growth and momentum. Toward the end of the period, equities saw a rotation back toward physical world stocks away from virtual world stocks, which reversed their performance during most of 2020. EM equities were relatively weak going into period end compared to their DM counterparts, largely due to a wave of COVID-19 cases and deaths in India.

The biggest contributors to the Fund’s relative performance were sentiment-based insights that were able to position the portfolio correctly across the ever-changing market backdrop. Specifically, an insight designed to combine signals and data sources optimally was additive. A version of this insight designed to do well during momentum drawdowns was the top contributor, given the style weakness during the period. This insight motivated an overweight to machinery and semiconductor stocks, boosting performance as economies reopened and production levels recovered from shutdowns.

Macro thematic insights also aided performance. In particular, an insight that takes the opposite view on crowded positions held by generic style managers was a top contributor. While this insight struggled early in 2021 during the style shift, it benefited the Fund both in 2020 as many generic factor-focused managers struggled and late in the period as the value rally subsided.

The Fund’s fundamental measures were also contributors. Value-based measures notably performed well in the first quarter of 2021 amid reflationary market trends. Traditional measures such as measuring valuations by sales metrics supported fund performance. Additionally, the Fund’s environmental, social and governance (“ESG”) related measures were additive, with an insight that looks to capture investor flow into ESG-related positions driving gains. Notably, these proprietary ESG insights continued to demonstrate differentiation and resilience across different market environments.

Despite the Fund’s outperformance, however, there were measures that struggled during the period. Specifically, insights with a preference for less highly levered stocks detracted from performance amid a market environment that favored risk-taking and the broader reopening theme. Also, while macro thematic themes performed well in the aggregate, top-down country positioning dragged on performance. Specifically, an overweight to India weighed on relative return, given the country’s severe outbreak of COVID-19 late in the period. Additionally, select dynamic timing signals underperformed, as insights prompted overweight positions in consumer services stocks, which performed poorly.

The Fund was fully invested throughout the period. The investment adviser kept a higher average cash balance over the period, which was hedged by MSCI Emerging Markets Index futures to manage client flows. The Fund’s cash exposure had no material impact on Fund performance.

Describe recent portfolio activity.

Over the course of the period, the Fund maintained a balanced allocation of risk across all major return drivers. There were, however, several new signals added within the stock selection model. For instance, the Fund built on its alternative data capabilities by adding an insight that captures brand sentiment toward retail names. Additionally, given the dynamic nature of the current market environment, the Fund instituted enhanced signal constructs to identify emerging trends such as sentiment around vaccine development and its impact on economic reopening.

Describe portfolio positioning at period end.

Relative to the benchmark, the Fund ended the period with largely neutral positioning from a sector perspective. The Fund had slight overweight positions in the industrials and information technology sectors and maintained slight underweights in financials and consumer discretionary stocks. From a geographical perspective, the Fund had slight overweight positions to South Africa and Brazil and maintained underweights to India and China.

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.

TOTAL RETURN BASED ON A $10,000 INVESTMENT

The Fund commenced operations on October 6, 2011.

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

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

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

Investment Objective

BlackRock Global Long/Short Equity Fund’s (the “Fund”) investment objective is to seek total return over the long term.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended April 30, 2021, the Fund outperformed its benchmark, the ICE BofA 3-Month U.S. Treasury Bill Index.

What factors influenced performance?

Overall, the Fund performed well amid a volatile and uncertain economic backdrop. Early in the period, markets benefited from the early stages of reopening after COVID-19 lockdown measures imposed earlier in 2020. However, it was stronger-than-expected efficacy from vaccine developers in November that provided an accelerated market recovery. This prompted a sharp rotation away from momentum styles toward cyclical styles, as investors moved their expectations for an economic rebound forward. This became the dominant theme late in the period, as expedited vaccine rollouts provided a more ebullient market tone.

Overall, trend-based sentiment measures contributed the most to the Fund’s relative performance, having correctly captured the evolving market backdrop. Early in the period, these insights correctly identified emerging trends during the lockdown and initial reopening phases. Higher-frequency insights that look at data on online search activity, credit card transactions, and mobile application use all performed well, particularly among stocks in the retail industry. Despite coming under pressure in November 2020, trend-based measures once again led gains as the recovery broadened. Insights that tactically identified stocks sensitive to sentiment associated with news about vaccines and their rollout performed well. Elsewhere within sentiment, insights that took opposing views from consensus hedge-fund short positions were rewarded during the severe deleveraging in January 2021.

Macro thematic insights were also additive, motivating a posture favoring value and shorting growth and momentum toward the end of 2020, as regime-timing insights captured reflationary pressures. This benefited the Fund by producing sizable exposure to the recovery trends that boosted the market’s performance. Country positioning performed well, with long positions in the United States and short positions in Europe based on relative speeds of vaccine rollouts and increased mobility. Performance was also strong along the industry spectrum, with long positions in financials and energy driving gains amid a rally in value stocks. Similarly, fundamental value insights were some of the strongest performers late in the period during 2021, having benefited from their style preference. Top-down models motivated a net long position in November 2020, which the Fund maintained until the end of the period. The total net long equity exposure was approximately 9%, which contributed to overall performance as it successfully captured the market’s performance as equities reached new highs.

Conversely, despite broad strength, select insights partially offset gains and detracted from relative performance. During September 2020, the shift in investor focus away from company fundamentals toward macro risk weighed on performance. The combination of the U.S. election, adverse trends in COVID-19 case counts, and expectations for further fiscal policy support became dominant themes, and investors took profits from previous pandemic-related winners. The Fund’s short positions struggled during the resulting rotation, with losses unsurprisingly coming from fundamental quality measures. Performance continued to struggle into October 2020, with insights that seek to capture fundamental trends coming under pressure during earnings season.

Finally, given the strong valuation preference that manifested during the period, the Fund’s ESG-related measures slightly declined, with losses concentrated during 2021. These signals performed well during the early stages of the pandemic, often providing much-needed ballast and resilience. However, the value rally that became the dominant theme later in the period put pressure on the measures, as companies that score poorly by most ESG standards outperformed. As such, ESG flow-related insights that look at investor positioning based on carbon intensity were leading detractors from performance.

During the period, the Fund used derivatives to efficiently implement its stock selection strategy. The Fund’s use of derivatives contributed positively to Fund performance.

The Fund was fully invested throughout the period. The Fund’s cash exposure had no material impact on performance, as cash was principally held in conjunction with the Fund taking long and short positions via the use of total return swap contracts.

Describe recent portfolio activity.

Over the course of the period, the portfolio maintained a balanced allocation of risk across all major return drivers. There were, however, several new signals added within the stock selection group of insights. These included a new insight that looked to capture companies within Europe likely to benefit from fiscal stimulus measures supporting sustainable businesses. Additionally, given the dynamic nature of the current market environment, the Fund instituted enhanced signal constructs to identify emerging trends such as sentiment around vaccine development and sensitivity to a reflationary economic environment.

Describe portfolio positioning at period end.

The Fund maintained a pro-risk stance with a net long posture of 9%, supported by market timing macro models. The Fund retained a preference for value and volatility on the long side, and a negative stance to large-cap stocks on the short side.

Across sectors, long positions in consumer discretionary, industrials, and materials stocks underpinned the Fund’s stance favoring a continued reopening. These positions were funded by short positions in defensive industries such as pharmaceuticals, telecommunications stocks, and utilities. Stimulus and vaccine-related preferences dominated the Fund’s country positioning, with long positions in the United States, United Kingdom and Asia, and small short positions in Europe ex-U.K.

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.

TOTAL RETURN BASED ON A $10,000 INVESTMENT

The Fund commenced operations on December 20, 2012.

N/A — Not applicable as the share class and index do not have a sales charge.

Past performance is not an indication of future results.

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

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

About Fund Performance

Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. Class K Shares performance of BlackRock Global Long/Short Equity Fund shown prior to the Class K Shares inception date of March 28, 2016 is that of Institutional Shares. Class K Shares performance of BlackRock Advantage Emerging Markets Fund shown prior to the Class K Shares inception date of January 25, 2018 is that of Institutional Shares. The performance of each Fund’s Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 5.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. These shares automatically convert to Investor A Shares after approximately eight years.

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time, and may continue to affect adversely the value and liquidity of the fund’s investments. As a result, current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver(s) and/or reimbursement(s), each Fund’s performance would have been lower. With respect to each Fund’s voluntary waiver(s), if any, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waiver(s) may be reduced or discontinued at any time. With respect to each Fund’s contractual waiver(s), if any, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See the Notes to Financial Statements for additional information on waivers and/or reimbursements.

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, administration fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested on November 1, 2020 and held through April 30, 2021) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

The expense examples provide 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 Fund and share class under the heading entitled “Expenses Paid During the Period.”

The expense examples also provide information about hypothetical account values and hypothetical expenses based on a 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 these Funds and other funds, compare the 5% hypothetical examples with the 5% hypothetical examples that appear in shareholder reports of other funds.

The expenses shown in the expense examples are intended to highlight shareholders’ ongoing costs only and do not reflect transactional expenses, such as sales charges, if any. Therefore, the hypothetical examples are 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 Funds 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 Funds’ 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 a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.