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: 811-23339
 
Name of Fund:  BlackRock Funds V
BlackRock Core Bond Portfolio
BlackRock GNMA Portfolio
BlackRock High Yield Bond Portfolio
BlackRock Income Fund
(Formerly BlackRock Credit Strategies Income Fund)
BlackRock Low Duration Bond Portfolio
BlackRock U.S. Government Bond Portfolio
                               
 
Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809
 
Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Funds V, 55 East 52nd Street, New York, NY 10055
 
Registrant’s telephone number, including area code: (800) 441-7762
 
Date of fiscal year end: 09/30/2020
 
Date of reporting period: 09/30/2020
 
Item 1 – Report to Stockholders

 
September
30,
2020
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2020
Annual
Report
BlackRock
Funds
V
BlackRock
GNMA
Portfolio
BlackRock
Income
Fund
BlackRock
U.S.
Government
Bond
Portfolio
Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
the
Securities
and
Exchange
Commission,
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Fund’s
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Instead,
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Please
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Dear
Shareholder,
The
12-month
reporting
period
as
of
September
30,
2020
has
been
a
time
of
sudden
change
in
global
financial
markets,
as
the
emergence
and
spread
of
the
coronavirus
(or
“COVID-19”)
led
to
a
vast
disruption
in
the
global
economy
and
financial
markets.
Prior
to
the
outbreak
of
the
virus,
U.S.
equities
and
bonds
both
delivered
impressive
returns,
despite
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.
But
as
the
threat
from
the
coronavirus
became
more
apparent
throughout
February
and
March
2020,
countries
around
the
world
took
economically
disruptive
countermeasures.
Stay-at-home
orders
and
closures
of
non-essential
businesses
became
widespread,
many
workers
were
laid
off,
and
unemployment
claims
spiked,
causing
a
global
recession
and
a
sharp
fall
in
equity
prices.
After
markets
hit
their
lowest
point
during
the
reporting
period
in
late
March
2020,
a
steady
recovery
ensued,
as
businesses
began
to
re-open
and
governments
learned
to
adapt
to
life
with
the
virus.
Equity
prices
continued
to
rise
throughout
the
summer,
fed
by
strong
fiscal
and
monetary
support
and
improving
economic
indicators.
Many
equity
indices
neared
or
surpassed
all-time
highs
in
early
September
2020
before
retreating
amid
concerns
about
a
second
wave
of
infections.
In
the
United
States,
large-capitalization
stocks
advanced,
outperforming
small-capitalization
stocks,
which
gained
only
marginally
during
the
reporting
period.
International
equities
from
developed
economies
were
nearly
flat,
lagging
emerging
market
stocks,
which
rebounded
sharply.
During
the
market
downturn,
the
performance
of
different
types
of
fixed-income
securities
initially
diverged
due
to
a
reduced
investor
appetite
for
risk.
U.S.
Treasuries
benefited
from
the
risk-off
environment,
and
posted
solid
returns,
as
the
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
touched
an
all-time
low.
In
the
corporate
bond
market,
support
from
the
U.S.
Federal
Reserve
(the
“Fed”)
assuaged
credit
concerns
and
both
investment-grade
and
high-yield
bonds
recovered
to
post
positive
returns.
The
Fed
reduced
short-term
interest
rates
in
late
2019
to
support
slowing
economic
growth.
After
the
coronavirus
outbreak,
the
Fed
instituted
an
additional
two
emergency
rate
cuts,
pushing
short-term
interest
rates
close
to
zero.
To
stabilize
credit
markets,
the
Fed
also
implemented
a
new
bond-buying
program,
as
did
several
other
central
banks
around
the
world,
including
the
European
Central
Bank
and
the
Bank
of
Japan.
Looking
ahead,
while
coronavirus-related
disruptions
have
clearly
hindered
worldwide
economic
growth,
we
believe
that
the
global
expansion
is
likely
to
continue
as
economic
activity
resumes.
Several
risks
remain,
however,
including
a
potential
resurgence
of
the
coronavirus
amid
loosened
restrictions,
policy
fatigue
among
governments
already
deep
into
deficit
spending,
and
structural
damage
to
the
financial
system
from
lengthy
economic
interruptions.
Overall,
we
favor
a
moderately
positive
stance
toward
risk,
and
in
particular
toward
credit
given
the
extraordinary
central
bank
measures
taken
in
recent
months.
This
support
extends
beyond
investment-grade
corporates
and
into
high-yield,
leading
to
attractive
opportunities
in
that
end
of
the
market.
We
believe
that
international
diversification
and
a
focus
on
sustainability
can
help
provide
portfolio
resilience,
and
the
disruption
created
by
the
coronavirus
appears
to
be
accelerating
the
shift
toward
sustainable
investments.
We
remain
neutral
on
equities
overall
while
favoring
European
stocks,
which
are
poised
for
cyclical
upside
as
re-openings
continue.
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,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
September
30,
2020
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
31.31%
15.15%
U.S.
small
cap
equities
(Russell
2000
®
Index)
31.60
0.39
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
20.39
0.49
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
29.37
10.54
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.06
1.10
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
0.71
10.74
U.S.
investment
grade
bonds
(Bloomberg
Barclays
U.S.
Aggregate
Bond
Index)
3.53
6.98
Tax-exempt
municipal
bonds
(S&P
Municipal
Bond
Index)
3.78
3.85
U.S.
high
yield
bonds
(Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
15.18
3.20
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Fund
Summaries
.......................................................................................................
4
The
Benefits
and
Risks
of
Leveraging
..........................................................................................
14
About
Fund
Performance
.................................................................................................
15
Disclosure
of
Expenses
...................................................................................................
16
Derivative
Financial
Instruments
.............................................................................................
16
Financial
Statements:
Schedules
of
Investments
...............................................................................................
17
Statements
of
Assets
and
Liabilities
.........................................................................................
76
Statements
of
Operations
................................................................................................
79
Statements
of
Changes
in
Net
Assets
........................................................................................
80
Financial
Highlights
.....................................................................................................
82
Notes
to
Financial
Statements
...............................................................................................
97
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
114
Important
Tax
Information
.................................................................................................
115
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
..................................................................
116
Trustee
and
Officer
Information
..............................................................................................
121
Additional
Information
....................................................................................................
124
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
126
Fund
Summary
as
of
September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
4
BlackRock
GNMA
Portfolio
Investment
Objective
BlackRock
GNMA
Portfolio’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
September
30,
2020,
the
Fund’s
Institutional
and
Class
K
Shares
performed
in
line
with
the
benchmark,
the
Bloomberg
Barclays
GNMA
MBS
Index,
while
the
Fund’s
Service,
Investor
A
and
Investor
C
Shares
underperformed
the
benchmark.
What
factors
influenced
performance?
The
Fund's
active
strategy
of
seeking
to
optimize
the
blend
of
to-be-announced
and
existing
mortgage
pools
versus
the
benchmark
index
contributed
positively,
driven
by
holdings
of
specified
pools.
Allocations
to
agency
mortgage
derivatives
such
as
interest-only
and
inverse
interest-only
agency
collateralized
mortgage
obligations
(“CMOs”)
also
contributed
positively
as
this
sector
rebounded
from
the
first
quarter
of
2020.
Relative
value
strategies
within
GNMA
coupons
also
contributed
positively.
The
Fund’s
interest
rate
volatility
strategies
and
allocation
to
Treasury
inflation-protected
securities
detracted
modestly
from
performance.
The
Fund
held
a
small
percentage
of
assets
in
derivatives,
primarily
through
futures
contracts,
as
a
means
to
manage
risk
against
allocations
in
mortgage-backed
securities
("MBS")
and
securitized
assets.
The
Fund’s
use
of
derivatives
had
a
negative
impact
on
Fund
performance.
Describe
recent
portfolio
activity.
Within
GNMA
coupons,
the
Fund
shifted
to
an
underweight
stance
in
middle
coupons
(primarily
3%
but
also
3.5%).
The
Fund
moved
slightly
overweight
in
2%
and
2.5%
coupons,
with
a
larger
overweight
position
in
the
4.5%
coupon
area.
The
Fund
continues
to
hold
an
allocation
to
agency
CMO's
with
seasoned
collateral,
although
this
was
trimmed
slightly
over
the
period.
The
Fund’s
already
modest
position
in
agency
commercial
mortgage-backed
securities
was
further
reduced.
Describe
portfolio
positioning
at
period
end.
The
Fund’s
positioning
continued
to
reflect
a
modestly
constructive
near-term
outlook
on
agency
MBS
based
on
a
supportive
technical
backdrop,
as
the
Fed’s
ongoing
purchases
are
driving
fundamental
support
for
low-coupon
MBS.
At
the
same
time,
the
investment
adviser
remained
cognizant
of
the
potential
for
valuations
to
become
stretched
to
unattractive
levels.
The
Fund
closed
the
period
with
a
neutral
stance
with
respect
to
duration
(and
corresponding
sensitivity
to
interest
rate
changes)
relative
to
the
benchmark.
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.
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
100‌
%
Non-Agency
Mortgage-Backed
Securities
..................
—‌
(b)
(a)
Excludes
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)
......................................
100‌
%
(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)
Excludes
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.
Fund
Summary
as
of
September
30,
2020
(continued)
5
Fund
Summary
BlackRock
GNMA
Portfolio
TOTAL
RETURN
BASED
ON
A
$10,000
INVESTMENT
Performance
Summary
for
the
Period
Ended
September
30,
2020
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
Under
normal
circumstances,
the
Fund
invests
at
least
80%
of
its
assets
in
Government
National
Mortgage
Association
("GNMA")
securities.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
GNMA
Portfolio
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Funds
II,
through
a
tax-free
reorganization
(the
“Reorganization”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization
.
(c)
An
unmanaged
index
comprised
of
mortgage-backed
pass
through
securities
of
GNMA.
Average
Annual
Total
Returns
(a)(b)
1
Year
5
Years
10
Years
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
Institutional
......................
1.88‌%
1.72‌%
1.47‌%
3.86‌%
N/A‌
2.67‌%
N/A‌
2.99‌%
N/A‌
Service
........................
1.63‌
1.44‌
1.34‌
3.71‌
N/A‌
2.40‌
N/A‌
2.67‌
N/A‌
Investor
A
.......................
1.57‌
1.40‌
1.34‌
3.60‌
(0.55‌)%
2.40‌
1.57‌%
2.67‌
2.25‌%
Investor
C
.......................
0.88‌
0.77‌
0.96‌
2.83‌
1.83‌
1.63‌
1.63‌
1.90‌
1.90‌
Class
K
........................
1.93‌
1.82‌
1.49‌
3.91‌
N/A‌
2.72‌
N/A‌
3.02‌
N/A‌
Bloomberg
Barclays
GNMA
MBS
Index
.
—‌
—‌
0.26‌
3.86‌
N/A‌
2.74‌
N/A‌
2.91‌
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
on
page
15
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
(b)
Under
normal
circumstances,
the
Fund
invests
at
least
80%
of
its
assets
in
GNMA
securities.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
the
“Predecessor
”
Fund
,
a
s
e
ries
of
BlackRock
Funds
II,
thr
ough
the
“Reorganization”
.
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization
.
N/A
-
Not
applicable
as
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.
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
6
BlackRock
GNMA
Portfolio
Expense
Example
Actual
Hypothetical
(a)
sa
Including
Interest
Expense
Excluding
Interest
Expense
Including
Interest
Expense
Excluding
Interest
Expense
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Expenses
Paid
During
the
Period
(c)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(c)
Institutional
...............
$
1,000.00‌
$
1,014.70‌
$
2.17‌
$
2.12‌
$
1,000.00‌
$
1,022.85‌
$
2.17‌
$
1,022.90‌
$
2.12‌
Service
.................
1,000.00‌
1,013.40‌
3.32‌
3.27‌
1,000.00‌
1,021.70‌
3.34‌
1,021.75‌
3.29‌
Investor
A
................
1,000.00‌
1,013.40‌
3.42‌
3.37‌
1,000.00‌
1,021.60‌
3.44‌
1,021.65‌
3.39‌
Investor
C
................
1,000.00‌
1,009.60‌
7.1
3‌
7.08‌
1,000.00‌
1,017.
90‌
7.
16‌
1,017.95‌
7.11‌
Class
K
.................
1,000.00‌
1,014.90‌
1.9
1‌
1.86‌
1,000.00‌
1,023.
10‌
1.9
2‌
1,023.15‌
1.87‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
366.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class
(0.43%
for
Institutional,
0.66%
for
Service,
0.68%
for
Investor
A,
1.42%
for
Investor
C
and
0.38%
for
Class
K),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(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
(0.42%
for
Institutional,
0.65%
for
Service,
0.67%
for
Investor
A,
1.41%
for
Investor
C
and
0.37%
for
Class
K),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(to
reflect
the
one-half
year
period
shown).
See
“Disclosure
of
Expenses”
on
page
16
for
further
information
on
how
expenses
were
calculated.
Fund
Summary
as
of
September
30,
2020
7
Fund
Summary
BlackRock
Income
Fund
Investment
Objective
BlackRock
Income
Fund’s
(the
“Fund”)
investment
objective
is
to
seek
to
provide
high
current
income,
with
a
secondary
objective
of
long-term
capital
appreciation.
On
February
20,
2020,
the
Board
of
Trustees
of
the
Trust
approved
a
change
in
the
name
of
BlackRock
Credit
Strategies
Income
Fund,
effective
as
of
May
1,
2020,
to
BlackRock
Income
Fund.
Portfolio
Management
Commentary
How
did
the
Fund
perform?
For
the
12-month
period
ended
September
30,
2020,
the
Fund’s
Institutional
and
Class
K
Shares
outperformed
its
Customized
Reference
Benchmark,
while
its
Investor
A
and
Investor
C
Shares
underperformed.
The
Customized
Reference
Benchmark
is
comprised
of
the
returns
of
the
Bloomberg
Barclays
Global
High
Yield
100%
Hedged
USD
Index
(25%),
S&P/LSTA
Leveraged
Loan
Index
(25%),
Bloomberg
Barclays
U.S.
CMBS
Investment
Grade
Index
(25%),
and
JPMorgan
Corporate
Emerging
Markets
Bond
Index
Broad
Diversified
(CEMBI
Broad
Diversified)
(25%).
The
Fund
is
not
managed
with
reference
to
the
current
performance
benchmark
and
its
exposures
may
deviate
meaningfully
from
the
current
performance
benchmark.
What
factors
influenced
performance?
Contributors
to
the
Fund’s
performance
during
the
12-month
period
included
a
range
of
credit-oriented
exposures,
including
U.S.
investment
grade
corporate
bonds,
Asian
and
European
corporate
credit,
U.S.
high
yield
corporates
and
capital
securities.
The
Fund’s
positioning
with
respect
to
duration
(sensitivity
to
interest
rate
changes)
also
contributed
positively.
Detractors
from
performance
included
holdings
in
floating
rate
loan
interests
(“bank
loans”)
and
emerging
markets
exchange
traded
funds.
The
Fund’s
cash
position
was
8.7%
of
portfolio
assets
as
of
September
30,
2020.
The
cash
position
serves
two
purposes:
First,
it
is
held
against
certain
derivatives
that
add
market
exposure.
Second,
the
investment
adviser
is
comfortable
allowing
cash
to
build
up
as
they
look
for
the
most
favorable
opportunities
to
deploy
capital
into
risk
assets.
The
Fund’s
cash
position
did
not
have
a
significant
impact
on
Fund
performance.
Lastly,
as
part
of
its
investment
strategy,
the
Fund
utilizes
derivatives,
mainly
forward
contracts
to
manage
foreign
currency
exposure
of
non-U.S.
positions
back
to
U.S.
dollars
and
interest
rate
futures
to
adjust
duration
positioning
tactically
as
needed.
During
the
period,
portfolio
hedges
performed
poorly
while
risk
assets
performed
well.
Overall,
the
use
of
derivatives
had
a
negative
impact
on
Fund
performance.
Describe
recent
portfolio
activity.
Over
the
past
12
months,
the
Fund
navigated
a
period
of
heightened
volatility
due
to
the
COVID-19
pandemic.
During
the
period,
the
Fund
tactically
increased
exposure
to
U.S.
investment
grade
corporate
securities.
In
the
height
of
the
pandemic,
the
investment
adviser
shifted
Fund
investments
to
take
advantage
of
the
opportunities
presented
by
market
dislocations.
To
illustrate,
the
Fund’s
allocation
to
U.S.
investment
grade
corporate
issues
was
as
low
as
4%,
and
as
high
as
14%,
during
the
period.
Throughout
the
12-month
period,
exposure
to
bank
loans
was
reduced
as
the
sector
faced
headwinds
in
the
form
of
technical
pressures,
leading
to
a
reduction
in
the
Fund’s
bank
loan
allocation
to
11%.
The
Fund
also
made
several
other
portfolio
adjustments,
including
the
addition
of
holdings
in
global
high
yield
and
capital
securities.
Describe
portfolio
positioning
at
period
end.
The
Fund
ended
the
12-month
period
with
meaningful
allocations
to
global
high
yield
corporate
and
emerging
market
bonds
where
the
investment
adviser
sees
the
best
opportunities
to
generate
attractive
income.
In
terms
of
credit
quality,
the
Fund
was
positioned
with
an
up-in-quality
bias
at
period
end
given
COVID-19
uncertainty,
fairer
valuations,
and
the
upcoming
U.S.
presidential
election.
Overall,
the
investment
adviser
was
constructive
regarding
risk
assets
while
seeking
to
be
selective
in
deploying
capital.
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.
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
8
BlackRock
Income
Fund
Portfolio
Information
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
72‌
%
Floating
Rate
Loan
Interests
...........................
13‌
Asset-Backed
Securities
..............................
8‌
Investment
Companies
...............................
3‌
Non-Agency
Mortgage-Backed
Securities
..................
2‌
Foreign
Agency
Obligations
............................
1‌
Preferred
Securities
.................................
1‌
Foreign
Government
Obligations
........................
—‌
(b)
Common
Stocks
...................................
—‌
(b)
U.S.
Government
Sponsored
Agency
Securities
..............
—‌
(b)
Warrants
........................................
—‌
(b)
Other
Interests
....................................
—‌
(b)
(a)
Excludes
short-term
securities,
options
purchased
and
options
written.
(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)
.....................................
1‌
%
AA/Aa
........................................
1‌
A
...........................................
8‌
BBB/Baa
......................................
21‌
BB/Ba
........................................
24‌
B
...........................................
28‌
CCC/
Caa
......................................
6‌
CC/Ca
.......................................
—‌
(d)
NR
..........................................
11‌ 
(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)
Excludes
short-term
securities,
options
purchased
and
options
written.
(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.
Fund
Summary
as
of
September
30,
2020
(continued)
9
Fund
Summary
BlackRock
Income
Fund
TOTAL
RETURN
BASED
ON
A
$10,000
INVESTMENT
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
(plus
the
amount
of
any
borrowing
for
investment
purposes)
in
fixed-income
securities.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
Credit
Strategies
Income
Fund
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Funds
II,
through
a
tax-free
reorganization
(the
“Reorganization
”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
The
Predecessor
Fund’s
returns
between
July
2,
2012
and
July
1,
2016
are
the
returns
of
the
Predecessor
Fund
when
it
followed
different
investment
objectives
and
different
investment
strategies
under
the
name
BlackRock
Secured
Credit
Portfolio.
The
Predecessor
Fund’s
returns
prior
to
July
2,
2012
are
the
returns
of
the
Predecessor
Fund
when
it
followed
different
investment
objectives
and
investment
strategies
under
the
name
BlackRock
Multi-Sector
Bond
Portfolio.
(c)
Market
value-weighted
index
designed
to
measure
the
performance
of
U.S.
leveraged
loan
market.
It
mirrors
the
market-weighted
performance
of
the
largest
institutional
leveraged
loans
based
upon
market
weightings,
spreads
and
interest
payments.
(d)
Bloomberg
Barclays
Global
High
Yield
100%
Hedged
USD
Index
is
a
“hedged”
version
of
the
Bloomberg
Barclays
Global
High
Yield
Index
which
is
a
multi-currency
flagship
measure
of
the
global
high
yield
debt
market.
The
index
represents
the
union
of
the
U.S.
High
Yield,
the
Pan-European
High
Yield,
and
Emerging
Markets
(EM)
Hard
Currency
High
Yield
Indices.
The
high
yield
and
emerging
markets
sub-components
are
mutually
exclusive.
(e)
The
index
measures
the
market
of
conduit
and
fusion
CMBS
deals
with
a
minimum
current
deal
size
of
$300
million.
The
index
is
divided
into
two
subcomponents:
the
U.S.
Aggregate-eligible
component,
which
contains
bonds
that
are
Employee
Retirement
Income
Security
Act
of
1974,
as
amended
(“ERISA”),
eligible
under
the
underwriter’s
exemption,
and
the
non-U.S.
Aggregate-
eligible
component,
which
consists
of
bonds
that
are
not
ERISA
eligible.
(f)
A
market
capitalization
weighted
index
consisting
of
U.S.-dollar-denominated
emerging
market
corporate
bonds.
According
to
J.P.
Morgan,
this
index
limits
the
weights
of
those
index
countries
with
larger
corporate
debt
stocks
by
only
including
a
specified
portion
of
these
countries’
eligible
current
face
amounts
of
debt
outstanding.
(g)
A
customized
performance
benchmark
comprised
of
the
returns
of
the
Bloomberg
Barclays
Global
High
Yield
100%
Hedged
USD
Index
(25%),
the
S&P/LSTA
Leveraged
Loan
Index
(25%),
the
Bloomberg
Barclays
U.S.
CMBS
Investment
Grade
Index
(25%)
and
the
JPMorgan
Corporate
Emerging
Markets
Bond
Index
Broad
Diversified
(CEMBI
Broad
Diversified)
(25%).
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
10
BlackRock
Income
Fund
Performance
Summary
for
the
Period
Ended
September
30,
2020
Expense
Example
Average
Annual
Total
Returns
(a)(b)
1
Year
5
Years
10
Years
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
Institutional
......................
3.71‌%
3.66‌%
13.77‌%
3.90‌%
N/A‌
5.16‌%
N/A‌
4.81‌%
N/A‌
Investor
A
.......................
3.37‌
3.34‌
13.63‌
3.64‌
1.05‌%
4.89‌
4.36‌%
4.56‌
4.30‌%
Investor
C
.......................
2.70‌
2.65‌
13.32‌
2.97‌
1.98‌
4.13‌
4.13‌
3.78‌
3.78‌
Class
K
........................
3.76‌
3.70‌
13.80‌
3.95‌
N/A‌
5.20‌
N/A‌
4.83‌
N/A‌
S&P/LSTA
Leveraged
Loan
Index
.....
—‌
—‌
14.24‌
1.06‌
N/A‌
4.01‌
N/A‌
4.25‌
N/A‌
Bloomberg
Barclays
Global
High
Yield
100%
Hedged
USD
Index
........
—‌
—‌
15.81‌
1.99‌
N/A‌
6.40‌
N/A‌
6.46‌
N/A‌
Bloomberg
Barclays
U.S.
CMBS
Investment
Grade
Index
.........
—‌
—‌
5.73‌
6.63‌
N/A‌
4.25‌
N/A‌
4.40‌
N/A‌
JPMorgan
CEMBI
Broad
Diversified
Index
—‌
—‌
14.20‌
4.85‌
N/A‌
6.29‌
N/A‌
5.32‌
N/A‌
Customized
Reference
Benchmark
...
—‌
—‌
12.45‌
3.76‌
N/A‌
5.29‌
N/A‌
5.15‌
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
on
page
15
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
fees,
and
how
performance
was
calculated
for
certain
share
classes.
(b)
Under
normal
market
conditions,
the
Fund
invests
at
least
80%
of
its
net
assets
(plus
the
amount
of
any
borrowing
for
investment
purposes)
in
fixed-income
securities.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
the
“Predecessor
Fund”,
a
series
of
BlackRock
Funds
II,
through
the
“Reorganization”.
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
The
Predecessor
Fund’s
returns
between
July
2,
2012
and
July
1,
2016
are
the
returns
of
the
Predecessor
Fund
when
it
followed
different
investment
objectives
and
different
investment
strategies
under
the
name
BlackRock
Secured
Credit
Portfolio.
The
Predecessor
Fund’s
returns
prior
to
July
2,
2012
are
the
returns
of
the
Predecessor
Fund
when
it
followed
different
investment
objectives
and
investment
strategies
under
the
name
BlackRock
Multi-Sector
Bond
Portfolio.
N/A
-
Not
applicable
as
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.
Actual
Hypothetical
(a)
Including
Interest
Expense
Excluding
Interest
Expense
Including
Interest
Expense
Excluding
Interest
Expense
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Expenses
Paid
During
the
Period
(c)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(c)
Institutional
...............
$
1,000.00‌
$
1,137.70‌
$
3.31‌
$
3.31‌
$
1,000.00‌
$
1,021.90‌
$
3.13‌
$
1,021.90‌
$
3.13‌
Investor
A
................
1,000.00‌
1,136.30‌
4.65‌
4.65‌
1,000.00‌
1,020.65‌
4.39‌
1,020.65‌
4.39‌
Investor
C
................
1,000.00‌
1,133.20‌
8.64‌
8.59‌
1,000.00‌
1,016.90‌
8.17‌
1,016.90‌
8.17‌
Class
K
.................
1,000.00‌
1,138.00‌
3.05‌
3.05‌
1,000.00‌
1,022.15‌
2.88‌
1,022.15‌
2.88‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
366.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class
(0.62%
for
Institutional,
0.87%
for
Investor
A,
1.62%
for
Investor
C
and
0.57%
for
Class
K),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(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
(0.62%
for
Institutional,
0.87%
for
Investor
A,
1.62%
for
Investor
C
and
0.57%
for
Class
K),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(to
reflect
the
one-half
year
period
shown).
See
“Disclosure
of
Expenses”
on
page
16
for
further
information
on
how
expenses
were
calculated.
Fund
Summary
as
of
September
30,
2020
11
Fund
Summary
BlackRock
U.S.
Government
Bond
Portfolio
Investment
Objective
BlackRock
U.S.
Government
Bond
Portfolio’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
September
30,
2020,
the
Fund’s
Institutional
and
Class
K
Shares
outperformed
the
benchmark,
the
Bloomberg
Barclays
U.S.
Government/
Mortgage
Index,
while
the
Fund’s
Service,
Investor
A,
Investor
C
and
Class
R
Shares
underperformed
the
benchmark.
What
factors
influenced
performance?
The
largest
detractor
from
performance
relative
to
the
benchmark
was
the
Fund’s
allocation
to
securitized
assets,
most
notably
commercial
mortgage-backed
securities
(“CMBS”).
Most
of
the
performance
shortfall
from
CMBS
exposure
occurred
during
the
sell-off
in
credit
assets
seen
in
the
first
quarter
of
2020.
Positive
contributions
to
relative
performance
were
led
by
the
Fund’s
interest
rate-based
strategies,
most
notably
allocations
to
global
sovereign
bonds.
Positioning
with
respect
to
U.S.
interest
rates
contributed
as
well
as
Treasury
yields
declined
sharply
in
the
first
quarter
of
2020
given
escalating
COVID-19
concerns.
Relative
value
strategies
within
agency
mortgage-backed
securities
(“MBS”)
also
contributed
to
performance,
including
trading
the
spread
between
agency
mortgages
and
Treasuries
during
the
first
quarter
of
2020.
Finally,
long
exposure
to
U.S.
inflation
in
early
2020
aided
returns.
Describe
recent
portfolio
activity.
The
Fund
maintained
a
slight
overweight
to
agency
MBS,
while
favoring
lower
coupon
pools
benefiting
from
Fed
support
and
preferring
to
avoid
middle
coupons.
Allocations
to
agency
collateralized
mortgage
obligations
were
reduced
along
with
exposure
to
agency
CMBS.
The
Fund
has
maintained
an
essentially
neutral
stance
with
respect
to
overall
U.S.
duration
(and
corresponding
interest
rate
sensitivity)
while
preferring
the
seven-
to
10-year
part
of
the
Treasury
yield
curve.
Exposure
to
emerging
market
interest
rates
was
increased,
primarily
in
Asia,
while
European
sovereign
rate
exposure
was
maintained.
The
Fund’s
cash
position
was
elevated
in
the
wake
of
the
disruption
in
financial
markets
caused
by
COVID-19
concerns,
as
the
investment
adviser
sought
to
maintain
liquidity
and
preserve
capital.
The
Fund’s
cash
position
did
not
have
a
significant
impact
on
Fund
performance.
Describe
portfolio
positioning
at
period
end.
The
Fund
held
a
modestly
constructive
near-term
outlook
on
agency
MBS
based
on
strong
technical
support,
as
the
Fed’s
ongoing
volume
of
purchases
should
drive
fundamental
benefits
to
low-coupon
issues
within
the
segment.
Overall
U.S.
duration
was
neutral
with
a
preference
for
the
seven-
to
10-year
part
of
the
yield
curve.
Within
global
rates
and
currencies,
the
Fund
maintained
small
long
positions
in
select
European
peripheral
and
Asian
emerging
market
sovereign
issues.
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.
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
12
BlackRock
U.S.
Government
Bond
Portfolio
Portfolio
Information
TOTAL
RETURN
BASED
ON
A
$10,000
INVESTMENT
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
U.S.
Government
Sponsored
Agency
Securities
..............
47‌
%
U.S.
Treasury
Obligations
.............................
47‌
Foreign
Government
Obligations
........................
3‌
Non-Agency
Mortgage-Backed
Securities
..................
2‌
Asset-Backed
Securities
..............................
1‌
Foreign
Agency
Obligations
............................
—‌
(b)
(a)
Excludes
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)
......................................
95‌
%
AA/Aa
.........................................
1‌
A
............................................
2‌
BBB/Baa
.......................................
1‌
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)
Excludes
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.
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
Under
normal
circumstances,
the
Fund
invests
at
least
80%
of
its
assets
in
bonds
that
are
issued
or
guaranteed
by
the
U.S.
Government
and
its
agencies.
The
Fund
invests
primarily
in
the
highest
rated
government
and
agency
bonds
and
maintains
an
average
portfolio
duration
that
is
within
±20%
of
the
duration
of
the
Bloomberg
Barclays
U.S.
Government/Mortgage
Index.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
U.S.
Government
Bond
Portfolio
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Funds
II,
through
a
tax-free
reorganization
(the
“Reorganization”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
(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.
Fund
Summary
as
of
September
30,
2020
(continued)
13
Fund
Summary
BlackRock
U.S.
Government
Bond
Portfolio
Performance
Summary
for
the
Period
Ended
September
30,
2020
Expense
Example
Average
Annual
Total
Returns
(a)(b)
1
Year
5
Years
10
Years
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
Institutional
......................
1.22‌%
1.03‌%
1.73‌%
6.72‌%
N/A‌
3.34‌%
N/A‌
2.84‌%
N/A‌
Service
........................
0.99‌
0.90‌
1.70‌
6.46‌
N/A‌
3.10‌
N/A‌
2.63‌
N/A‌
Investor
A
.......................
0.93‌
0.77‌
1.60‌
6.45‌
2.19‌%
3.07‌
2.23‌%
2.55‌
2.13‌%
Investor
C
.......................
0.23‌
0.11‌
1.23‌
5.66‌
4.66‌
2.30‌
2.30‌
1.75‌
1.75‌
Class
K
........................
1.27‌
1.12‌
1.76‌
6.78‌
N/A‌
3.37‌
N/A‌
2.86‌
N/A‌
Class
R
........................
0.72‌
0.60‌
1.48‌
6.18‌
N/A‌
2.81‌
N/A‌
2.29‌
N/A‌
Bloomberg
Barclays
U.S.
Government/
Mortgage
Index
..............
—‌
—‌
0.71‌
6.55‌
N/A‌
3.45‌
N/A‌
3.07‌
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
on
page
15
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees,
and
how
performance
was
calculated
for
certain
share
classes.
(b)
Under
normal
circumstances,
the
Fund
invests
at
least
80%
of
its
assets
in
bonds
that
are
issued
or
guaranteed
by
the
U.S.
Government
and
its
agencies.
The
Fund
invests
primarily
in
the
highest
rated
government
and
agency
bonds
and
maintains
an
average
portfolio
duration
that
is
within
±20%
of
the
duration
of
the
Bloomberg
Barclays
U.S.
Government/Mortgage
Index.
On
September
17,
2018,
the
Fund
acquired
all
of
the
asset
s,
subject
to
the
liabilities,
of
the
“Predecessor
Fund”
,
a
series
of
BlackRock
Funds
II,
thr
ough
the
“Reorganization”
.
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
N/A
-
Not
applicable
as
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.
Actual
Hypothetical
(a)
Including
Interest
Expense
Excluding
Interest
Expense
Including
Interest
Expense
Excluding
Interest
Expense
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Expenses
Paid
During
the
Period
(c)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(c)
Institutional
...............
$
1,000.00‌
$
1,017.30‌
$
2.37‌
$
2.37‌
$
1,000.00‌
$
1,022.65‌
$
2.38‌
$
1,022.65‌
$
2.38‌
Service
.................
1,000.00‌
1,017.00‌
3.5
3‌
3.5
3‌
1,000.00‌
1,021.5
0‌
3.5
4‌
1,021.5
0‌
3.
54‌
Investor
A
................
1,000.00‌
1,016.00‌
3.48‌
3.48‌
1,000.00‌
1,021.55‌
3.49‌
1,021.55‌
3.49‌
Investor
C
................
1,000.00‌
1,012.30‌
7.29‌
7.29‌
1,000.00‌
1,017.75‌
7.31‌
1,017.75‌
7.31‌
Class
K
.................
1,000.00‌
1,017.60‌
2.22‌
2.22‌
1,000.00‌
1,022.80‌
2.23‌
1,022.80‌
2.23‌
Class
R
.................
1,000.00‌
1,014.80‌
4.18‌
4.18‌
1,000.00‌
1,020.85‌
4.19‌
1,020.85‌
4.19‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
366.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class
(0.47%
for
Institutional,
0.70%
for
Service,
0.69%
for
Investor
A,
1.45%
for
Investor
C,
0.44%
for
Class
K
and
0.83%
for
Class
R),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(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
(0.47%
for
Institutional,
0.70%
for
Service,
0.69%
for
Investor
A,
1.45%
for
Investor
C,
0.44%
for
Class
K
and
0.83%
for
Class
R),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(to
reflect
the
one-half
year
period
shown).
See
“Disclosure
of
Expenses”
on
page
16
for
further
information
on
how
expenses
were
calculated.
2020
BlackRock
Annual
Report
to
Shareholders
14
The
Benefits
and
Risks
of
Leveraging 
The
Funds
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
Funds
may
utilize
leverage
through
a
credit
facility
and/or
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
each
Fund
on
its
longer-term
portfolio
investments
purchased
with
the
proceeds
from
leverage.
To
the
extent
that
the
total
assets
of
each
Fund
(including
the
assets
obtained
from
leverage)
are
invested
in
higher-yielding
portfolio
investments, each
Fund's
shareholders
benefit
from
the
incremental
net
income.
The
interest
earned
on
securities
purchased
with
the
proceeds
from
leverage
is
distributed
to each
Fund's
shareholders,
and
the
value
of
these
portfolio
holdings
is
reflected
in each
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
a
Fund’s
return
on
assets
purchased
with
leverage
proceeds,
income
to
shareholders
is
lower
than
if
the
Funds
had
not
used
leverage.
Furthermore,
the
value
of
each
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
each
Fund’s
NAV
positively
or
negatively
in
addition
to
the
impact
on
each
Fund’s
performance
from
leverage.
Changes
in
the
direction
of
interest
rates
are
difficult
to
predict
accurately,
and
there
is
no
assurance
that
a
Fund’s
leveraging
strategy
will
be
successful.
The
use
of
leverage
also
generally
causes
greater
changes
in
each
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,
each
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
a
Fund’s
ability
to
invest
in
certain
types
of
securities
or
use
certain
types
of
hedging
strategies.
Each
Fund
incurs
expenses
in
connection
with
the
use
of
leverage,
all
of
which
are
borne
by
each
Fund’s
shareholders
and
may
reduce
income.
About
Fund
Performance
15
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
shown
prior
to
the
Income
Fund's
Class
K
Shares
inception
date
of
August
1,
2016
and
U.S.
Government
Bond
Portfolio's
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
.
Service
Shares
(available
only
in
GNMA
Portfolio
and
U.S.
Government
Bond
Portfolio)
are
not
subject
to
any
sales
charge.
These
shares
are
subject
to
a
service
fee
of 
0.25%
per
year
(but
no
distribution
fee)
and
are
only
available
to
certain
eligible
investors. 
Investor
A
Shares
are
subject
to
a
maximum
initial
sales
charge
(front-end
load)
of 
4.00%
for
all
Funds
included
in
this
report,
except
for
Income
Fund
(which
is
subject
to
an
initial
sales
charge
of
2.50%)
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.
On
February
24,
2020,
U.S.
Government
Bond
Portfolio's
issued
and
outstanding
Investor
C1
Shares
converted
into
Investor
A
Shares
with
the
same
relative
aggregate
NAV.
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%
pe
r
year.
These
shares
are
generally
available
through
financial
intermediaries.
These
shares
automatically
convert
to
Investor
A
Shares
after
approximately
ten
years.
Effective
November
23,
2020,
the
automatic
conversion
feature
will
be
modified
to
reduce
the
conversion
period
from
ten
years
to
eight
years.
Class
R
Shares
(available
only
in
U.S.
Government
Bond
Portfolio)
are
not
subject
to
any
sales
charge.
These
shares
are
subject
to
a
distribution
fee
of 
0.25%
per
year
and
a
service
fee
of 
0.25%
per
year.
These
shares
are
available
only
to
certain
employer-sponsored
retirement
plans.
Class
R
Shares
performance
shown
prior
to
the
U.S.
Government
Bond
Portfolio’s
Class
R
inception
date
of
July
18,
2011
is
that
of
Institutional
Shares
(which
have
no
distribution
or
service
fees)
and
was
restated
to
reflect
Class
R
Shares
fees.
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
page(s)
assu
me
reinvestment
of
all
distributions,
if
any,
at
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
and/or
reimbursement,
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. 
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.
Disclosure
of
Expenses
2020
BlackRock
Annual
Report
to
Shareholders
16
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
on
the
previous
pages
(which are
based
on
a
hypothetical
investment
of
$1,000
invested
on April
1,
2020 and
held
through
September
30,
2020) 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.
BlackRock
GNMA
Portfolio
Schedules
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2020
Security
Par
(000)
Value
Non-Agency
Mortgage-Backed
Securities
—
0.2%
Collateralized
Mortgage
Obligations
—
0.2%
Seasoned
Credit
Risk
Transfer
Trust,
Series
2018-4,
Class
MA,
3.50%,
03/25/58
.....
USD
1,005
$
1,084,450
Total
Non-Agency
Mortgage-Backed
Securities
—
0.2%
(Cost:
$982,158)
.................................
1,084,450
U.S.
Government
Sponsored
Agency
Securities
—
157.1%
Collateralized
Mortgage
Obligations
—
8.5%
Federal
Home
Loan
Mortgage
Corp.:
Series
3745,
Class
ZA,
4.00%, 10/15/40
..
367
433,347
Series
3780,
Class
ZA,
4.00%, 12/15/40
..
1,212
1,464,956
Series
3960,
Class
PL,
4.00%, 11/15/41
..
900
1,074,435
Series
4325,
Class
ZX,
4.50%, 04/15/44
..
2,535
3,068,238
Series
4384,
Class
LB,
3.50%, 08/15/43
..
1,500
1,651,935
Federal
National
Mortgage
Association:
Series
1996-48,
Class
Z,
7.00%, 11/25/26
.
136
148,276
Series
2010-134,
Class
KZ,
4.50%, 12/25/40
397
427,199
Series
2010-141,
Class
LZ,
4.50%, 12/25/40
346
387,360
Series
2011-8,
Class
ZA,
4.00%, 02/25/41
.
1,937
2,124,470
Series
2011-131,
Class
LZ,
4.50%, 12/25/41
331
387,193
Series
2017-76,
Class
PB,
3.00%, 10/25/57
1,125
1,274,614
Series
2018-21,
Class
CA,
3.50%, 04/25/45
1,103
1,143,759
Federal
National
Mortgage
Association
Variable
Rate
Notes,
Series
2018-32,
Class
PS,
(LIBOR
USD
1
Month
+
7.23%),
7.06%, 05/25/48
(a)
.................
2,814
3,166,354
Government
National
Mortgage
Association:
Series
2009-122,
Class
PY,
6.00%, 12/20/39
581
667,738
Series
2015-79,
Class
MY,
3.50%, 05/20/45
3,278
3,810,779
Series
2015-106,
Class
DY,
3.50%, 07/20/45
2,411
2,832,075
Series
2016-123,
Class
LM,
3.00%, 09/20/46
(b)
...............
400
441,768
Series
2019-5,
Class
P,
3.50%, 07/20/48
..
593
626,271
Government
National
Mortgage
Association
Variable
Rate
Notes
(c)
:
Series
2009-31,
Class
PT,
3.59%, 05/20/39
236
249,351
Series
2014-107,
Class
WX,
6.78%, 07/20/39
................
1,100
1,290,384
Series
2015-55,
Class
A,
5.40%, 03/16/36
.
8,227
9,480,272
Series
2015-103,
Class
B,
6.91%, 01/20/40
5,199
6,136,339
Series
2015-187,
Class
C,
5.29%, 03/20/41
9,023
10,708,576
52,995,689
Commercial
Mortgage-Backed
Securities
—
0.5%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(c)
:
Series
2019-SB60,
Class
A10F,
3.31%, 01/25/29
................
1,675
1,799,444
Series
2019-SB61,
Class
A10F,
3.17%, 01/25/29
................
1,271
1,374,218
Government
National
Mortgage
Association,
Series
2019-7,
Class
V,
3.00%, 05/16/35
..
163
179,900
3,353,562
Interest
Only
Collateralized
Mortgage
Obligations
—
1.7%
Federal
Home
Loan
Mortgage
Corp.:
Series
4062,
Class
GI,
4.00%, 02/15/41
..
91
7,761
Series
4533,
Class
JI,
5.00%, 12/15/45
...
656
121,249
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(a)
:
Series
4119,
Class
SC,
(LIBOR
USD
1
Month
+
6.15%),
6.00%, 10/15/42
....
1,929
339,133
Series
4901,
Class
CS,
(LIBOR
USD
1
Month
+
6.10%),
5.95%, 07/25/49
....
4,070
713,834
Series
4941,
Class
SH,
(LIBOR
USD
1
Month
+
5.95%),
5.80%, 12/25/49
....
2,930
500,819
Security
Par
(000)
Value
Interest
Only
Collateralized
Mortgage
Obligations
(continued)
Federal
National
Mortgage
Association:
Series
2013-10,
Class
PI,
3.00%, 02/25/43
USD
109
$
8,629
Series
2014-68,
Class
YI,
4.50%, 11/25/44
.
147
20,431
Series
2015-74,
Class
IA,
6.00%, 10/25/45
(b)
3,773
827,513
Series
2015-77,
6.00%, 10/25/45
(b)
......
4,421
996,882
Series
2017-68,
Class
IE,
4.50%, 09/25/47
3,873
513,018
Federal
National
Mortgage
Association
Variable
Rate
Notes
(a)
:
Series
2015-66,
Class
AS,
(LIBOR
USD
1
Month
+
6.25%),
6.10%, 09/25/45
....
5,873
1,173,771
Series
2016-60,
Class
SD,
(LIBOR
USD
1
Month
+
6.10%),
5.95%, 09/25/46
....
911
178,274
Series
2016-78,
Class
CS,
(LIBOR
USD
1
Month
+
6.10%),
5.95%, 05/25/39
....
1,136
223,948
Series
2017-70,
Class
SA,
(LIBOR
USD
1
Month
+
6.15%),
6.00%, 09/25/47
....
1,238
277,896
Series
2019-5,
Class
SA,
(LIBOR
USD
1
Month
+
6.10%),
5.95%, 03/25/49
....
5,173
1,095,395
Series
2019-25,
Class
SA,
(LIBOR
USD
1
Month
+
6.05%),
5.90%, 06/25/49
....
4,287
907,679
Series
2019-35,
Class
SA,
(LIBOR
USD
1
Month
+
6.10%),
5.95%, 07/25/49
....
2,272
410,163
Government
National
Mortgage
Association:
Series
2017-139,
Class
IB,
4.50%, 09/20/47
564
79,290
Series
2017-144,
Class
DI,
4.50%, 09/20/47
422
60,958
Series
2019-42,
Class
AI,
4.00%, 01/20/46
11,329
1,488,594
Government
National
Mortgage
Association
Variable
Rate
Notes,
Series
2017-101,
Class
SL,
(LIBOR
USD
1
Month
+
6.20%),
6.04%, 07/20/47
(a)
.................
2,464
491,065
10,436,302
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.9%
Government
National
Mortgage
Association
Variable
Rate
Notes:
Series
2016-22,
0.76%, 11/16/55
(c)
......
15,908
716,301
Series
2016-45,
0.97%, 02/16/58
(c)
......
7,740
453,255
Series
2016-92,
0.90%, 04/16/58
(c)
......
3,800
211,743
Series
2016-110,
0.98%, 05/16/58
(c)
.....
4,288
259,678
Series
2016-113,
(LIBOR
USD
1
Month
+
0.00%),
1.16%, 02/16/58
(a)
.........
9,090
675,895
Series
2016-151,
1.06%, 06/16/58
(c)
.....
15,642
1,044,360
Series
2017-53,
0.66%, 11/16/56
(c)
......
17,280
802,758
Series
2017-61,
0.77%, 05/16/59
(c)
......
4,372
261,358
Series
2017-64,
0.68%, 11/16/57
(c)
......
5,271
288,769
Series
2017-72,
0.66%, 04/16/57
(c)
......
9,949
512,811
5,226,928
Mortgage-Backed
Securities
—
145.5%
Federal
Home
Loan
Mortgage
Corp.:
3.00%, 06/01/35
-
07/01/35
...........
1,185
1,247,929
3.50%, 07/01/26
-
09/01/26
...........
36
37,944
4.00%, 01/01/22
-
05/01/26
...........
131
138,725
5.00%, 05/01/35
-
12/01/38
...........
82
94,878
5.65%, 05/01/37
-
12/01/37
...........
972
1,081,736
5.75%, 08/01/37
-
04/01/38
...........
1,461
1,626,520
7.50%, 03/01/27
..................
—
(d)
79
Federal
National
Mortgage
Association:
3.40%, 04/01/41
..................
160
164,700
3.50%, 11/01/46
..................
1,510
1,626,836
4.45%, 03/01/36
-
06/01/36
...........
763
807,796
4.94%, 01/01/35
-
05/01/35
...........
175
181,142
5.00%, 04/01/36
..................
98
102,621
5.20%, 08/01/34
-
09/01/34
...........
220
229,536
5.25%, 08/01/37
-
09/01/37
...........
971
1,063,990
5.54%, 01/01/35
..................
72
75,289
5.75%, 04/01/37
..................
389
426,096
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
GNMA
Portfolio
18
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
5.80%, 07/01/34
..................
USD
46
$
47,718
5.94%, 09/01/34
..................
73
76,714
6.50%, 09/01/28
-
02/01/31
...........
1,324
1,478,570
Government
National
Mortgage
Association:
2.00%, 10/15/50
(e)
.................
7,900
8,207,359
2.50%, 06/20/50
-
09/20/50
...........
7,643
8,062,398
2.50%, 10/15/50
-
11/15/50
(e)
..........
120,387
126,329,806
3.00%, 05/15/42
-
09/20/50
...........
130,247
138,215,534
3.00%, 10/15/50
-
11/15/50
(e)
..........
92,009
96,332,509
3.50%, 04/15/41
-
09/20/50
...........
143,113
152,702,096
3.50%, 08/20/42
(f)
.................
32,040
34,763,155
3.50%, 10/15/50
-
11/15/50
(e)
..........
53,156
55,966,028
4.00%, 10/20/41
-
08/20/50
...........
50,692
54,731,734
4.00%, 12/20/47
(f)
.................
6,244
6,661,503
4.00%, 10/15/50
(e)
.................
20,401
21,675,655
4.50%, 12/15/34
-
05/20/50
...........
66,177
71,416,211
5.00%, 09/15/28
-
05/20/50
...........
24,289
27,194,510
5.00%, 10/15/50
(e)
.................
1,900
2,068,254
5.30%, 02/15/37
-
04/15/37
...........
189
207,904
5.50%, 03/15/32
-
12/15/34
...........
7,040
8,178,096
5.64%, 02/15/37
-
06/15/37
...........
1,761
1,982,488
5.65%, 05/20/37
-
12/20/37
...........
930
1,024,196
5.75%, 08/20/37
-
04/20/38
...........
449
488,661
5.80%, 11/15/36
-
03/15/37
...........
1,808
2,018,423
6.00%, 03/20/28
-
01/15/39
...........
9,411
10,830,052
6.50%, 09/20/27
-
10/20/40
...........
3,402
3,912,389
7.00%, 03/20/24
-
05/20/27
...........
14
14,894
7.50%, 04/20/23
-
10/20/25
...........
2
2,196
8.00%, 05/15/21
-
05/15/30
...........
35
36,888
8.50%, 01/15/22
-
02/15/25
...........
15
15,686
9.00%, 06/15/21
-
10/15/21
...........
2
1,531
9.50%, 11/15/20
-
09/15/22
...........
—
(d)
304
Uniform
Mortgage-Backed
Securities:
2.00%, 10/25/50
(e)
.................
8,564
8,854,373
2.50%, 10/25/35
(e)
.................
154
160,810
3.00%, 07/01/35
-
06/01/43
...........
18,323
19,544,966
3.00%, 10/25/50
(e)
.................
19,815
20,757,373
3.50%, 10/25/35
(e)
.................
1,796
1,900,743
3.50%, 03/01/43
-
08/01/43
...........
1,811
1,961,570
4.00%, 07/01/43
..................
2,988
3,323,478
4.00%, 10/25/50
(e)
.................
133
141,850
5.00%, 01/01/21
-
07/01/35
...........
1,404
1,613,052
5.25%, 07/01/37
-
08/01/37
...........
476
523,312
5.50%, 12/01/32
-
04/01/35
...........
118
135,817
6.50%, 08/01/35
..................
690
806,830
903,273,453
Total
U.S.
Government
Sponsored
Agency
Securities
—
157.1%
(Cost:
$959,249,936)
..............................
975,285,934
Total
Long-Term
Investments
—
157.3%
(Cost:
$960,232,094)
..............................
976,370,384
Security
Shares
Value
Short-Term
Securities
—
5.4%
Money
Market
Funds
—
0.5%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.02%
(g)*
...................
3,225,583
$
3,225,583
Total
Money
Market
Funds
—
0.5%
(Cost:
$3,225,583)
...............................
3,225,583
Pa
r
(
000)
U.S.
Treasury
Obligations
—
4.9%
U.S.
Treasury
Bills
(h)
:
0.07%, 11/03/20
..................
USD
134
133,988
0.08%, 11/05/20
..................
25,272
25,269,850
0.08%, 11/12/20
..................
716
715,924
0.08%, 11/17/20
..................
3,660
3,659,570
0.09%, 11/24/20
..................
738
737,903
Total
U.S.
Treasury
Obligations
—
4.9%
(Cost:
$30,517,469)
...............................
30,517,235
Total
Short-Term
Securities
—
5.4%
(Cost:
$33,743,052)
...............................
33,742,818
Total
Options
Purchased
—
0.0%
(Cost:
$223,200)
.................................
253,621
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
162.7%
(Cost:
$994,198,346
)
..............................
1,010,366,823
Total
Options
Written
—
(0.0)%
(Premium
Received
—
$170,424)
.....................
(53,604)
TBA
Sale
Commitments
—
(34.4)%
(e)
Mortgage-Backed
Securities
—
(34.4)%
Government
National
Mortgage
Association:
2.50%, 10/15/50
..................
45,489
(47,772,334)
3.00%, 10/15/50
..................
48,577
(50,862,586)
3.50%, 10/15/50
..................
66,515
(70,022,770)
Uniform
Mortgage-Backed
Securities:
3.00%, 10/25/50
-
11/25/50
...........
39,280
(41,151,903)
3.50%, 10/25/50
..................
364
(383,779)
4.00%, 10/25/50
..................
3,109
(3,315,882)
Total
TBA
Sale
Commitments
—
(34.4)%
(Proceeds:
$213,450,077)
..........................
(213,509,254)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
128.3%
(Cost:
$780,577,845
)
..............................
796,803,965
Liabilities
in
Excess
of
Other
Assets
—
(28.3)%
............
(175,918,310)
Net
Assets
—
100.0%
...............................
$
620,885,655
(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
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(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)
Amount
is
less
than
500.
(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)
Annualized
7-day
yield
as
of
period
end.
(h)
Rates
are
discount
rates
or
a
range
of
discount
rates
as
of
period
end.
BlackRock
GNMA
Portfolio
Schedules
of
Investments
19
Schedule
of
Investments
(continued)
September
30,
2020
*
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2020
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/19
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/20
Shares
Held
at
09/30/20
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
2,823,418
$
402,165
$
—
$
—
$
—
$
3,225,583
3,225,583
$
33,708
$
6
(a)
Represents
net
amount
purchased
(sold).
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
BNP
Paribas
SA
.......
0.18
%
09/21/20
10/14/20  
$
6,485,871
$
6,486,196
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
BNP
Paribas
SA
.......
0.18
09/21/20
10/14/20  
11,765,021
11,765,609
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
$
18,250,892
$
18,251,805
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
GNMA
Portfolio
20
Schedule
of
Investments
(continued)
September
30,
2020
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
U.S.
Treasury
5
Year
Note
....................................................
386
12/31/20
$
48,648
$
53,344
Short
Contracts
90-day
Eurodollar
.........................................................
24
12/14/20
5,985
(36,558)
U.S.
Treasury
10
Year
Note
...................................................
226
12/21/20
31,534
(28,540)
U.S.
Treasury
10
Year
Ultra
Note
...............................................
5
12/21/20
800
(3,546)
U.S.
Treasury
Long
Bond
....................................................
91
12/21/20
16,042
(23,051)
U.S.
Treasury
Ultra
Bond
....................................................
18
12/21/20
3,993
9,795
U.S.
Treasury
2
Year
Note
....................................................
34
12/31/20
7,513
(4,706)
90-day
Eurodollar
.........................................................
22
03/15/21
5,489
(20,968)
90-day
Eurodollar
.........................................................
8
06/14/21
1,996
(16,433)
90-day
Eurodollar
.........................................................
8
09/13/21
1,996
(9,336)
90-day
Eurodollar
.........................................................
17
12/13/21
4,241
(18,848)
90-day
Eurodollar
.........................................................
7
03/14/22
1,746
(3,547)
90-day
Eurodollar
.........................................................
9
12/19/22
2,244
(13,850)
(169,588)
$
(116,244)
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
Put
10-Year
Interest
Rate
Swap
(a)
1.05%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
02/22/22
1.05
%
USD
12,000
$
253,621
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
U.S.
Treasury
5
Year
Note
.......................
200
10/23/20
USD
126.00
USD
20,000
$
(29,688)
Put
U.S.
Treasury
5
Year
Note
.......................
200
10/23/20
USD
126.00
USD
20,000
(23,438)
$
(53,126)
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
Call
10-Year
Interest
Rate
Swap
(a)
0.40%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
10/28/20
0.40
%
USD
6,100
$
(478)
(a)
Forward
settling
swaption.
BlackRock
GNMA
Portfolio
Schedules
of
Investments
21
Schedule
of
Investments
(continued)
September
30,
2020
i
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Centrally
Cleared
Interest
Rate
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
2.66%
Semi-Annual
3
month
LIBOR
Quarterly
02/06/23
USD
12,000
$
(732,391)
$
—
$
(732,391)
2.87%
Semi-Annual
3
month
LIBOR
Quarterly
03/23/23
USD
9,600
(634,540)
—
(634,540)
2.85%
Semi-Annual
3
month
LIBOR
Quarterly
12/21/28
USD
2,000
(382,138)
—
(382,138)
$
(1,749,069)
$
—
$
(1,749,069)
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.23
%
Balances
Reported
in
the
Statements
of
Assets
and
Liabilities
for
Centrally
Cleared
Swaps
and
Options
Written
Swap
Premiums
Paid
Swap
Premiums
Received
Unrealized
Appreciation
Unrealized
Depreciation
Value
Centrally
Cleared
Swaps
(a)
...........................................
$
—
$
—
$
—
$
(1,749,069)
$
—
Options
Written
...................................................
N/A
N/A
116,820
—
(53,604)
(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
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
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)
.....
$
—
$
—
$
—
$
—
$
63,139
$
—
$
63,139
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
—
—
253,621
—
253,621
$
—
$
—
$
—
$
—
$
316,760
$
—
$
316,760
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
179,383
—
179,383
Options
written
(b)
Options
written
at
value
.....................
—
—
—
—
53,604
—
53,604
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
1,749,069
—
1,749,069
$
—
$
—
$
—
$
—
$
1,982,056
$
—
$
1,982,056
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
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
forward
settling
swaptions.
(c)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
GNMA
Portfolio
22
Schedule
of
Investments
(continued)
September
30,
2020
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
For
the
year
ended
September
30,
2020,
the
effect
of
derivative
financial
instruments
in
the
Statements
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
.......................
$
—
$
—
$
—
$
—
$
(5,483,827)
$
—
$
(5,483,827)
Options
purchased
(a)
....................
—
—
—
—
(405,118)
—
(405,118)
Options
written
........................
—
—
—
—
731,924
—
731,924
Swaps
..............................
—
—
—
—
(4,032,926)
—
(4,032,926)
$
—
$
—
$
—
$
—
$
(9,189,947)
$
—
$
(9,189,947)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
(142,568)
—
(142,568)
Options
purchased
(b)
....................
—
—
—
—
198,306
—
198,306
Options
written
........................
—
—
—
—
138,453
—
138,453
Swaps
..............................
—
—
—
—
1,291,534
—
1,291,534
$
—
$
—
$
—
$
—
$
1,485,725
$
—
$
1,485,725
(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
..................................................................................
$
41,432,842
Average
notional
value
of
contracts
—
short
.................................................................................
91,233,846
Options:
Average
value
of
option
contracts
purchased
................................................................................
—
(a)
Average
value
of
option
contracts
written
...................................................................................
289,815
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
28,600,000
Average
notional
value
of
swaption
contracts
written
...........................................................................
26,675,000
Interest
rate
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
55,850,000
Average
notional
value
—
receives
fixed
rate
................................................................................
7,525,000
(a)
Derivative
not
held
at
any
quarter-end.
The
risk
exposure
table
serves
as
an
indicator
of
activity
during
the
period.
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
170,580
$
40,629
Options
(a)(b)
........................................................................................
253,621
53,604
Swaps
—
Centrally
cleared
.............................................................................
—
88
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
424,201
$
94,321
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(170,580)
(93,843)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
253,621
$
478
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
of
Assets
and
Liabilities
and
reported
in
the
Schedule
of
Investments.
(b)
Includes
forward
settling
swaptions.
BlackRock
GNMA
Portfolio
Schedules
of
Investments
23
Schedule
of
Investments
(continued)
September
30,
2020
See
notes
to
financial
statements.
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
(b)
Barclays
Bank
plc
................................
$
253,621
$
(478)
$
—
$
—
$
253,143
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
Barclays
Bank
plc
................................
$
478
$
(478)
$
—
$
—
$
—
(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.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
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.
The
breakdown
of
the
Fund's
investments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Non-Agency
Mortgage-Backed
Securities
........................
$
—
$
1,084,450
$
—
$
1,084,450
U.S.
Government
Sponsored
Agency
Securities
....................
—
973,019,771
2,266,163
975,285,934
Short-Term
Securities:
Money
Market
Funds
......................................
3,225,583
—
—
3,225,583
U.S.
Treasury
Obligations
...................................
—
30,517,235
—
30,517,235
Options
Purchased:
Interest
rate
contracts
......................................
—
253,621
—
253,621
Liabilities:
Investments:
TBA
Sale
Commitments
....................................
—
(213,509,254)
—
(213,509,254)
$
3,225,583
$
791,365,823
$
2,266,163
$
796,857,569
Derivative
Financial
Instruments
(a)
Assets:
Interest
rate
contracts
.......................................
$
63,139
$
—
$
—
$
63,139
Liabilities:
Interest
rate
contracts
.......................................
(232,509)
(1,749,547)
—
(1,982,056)
$
(169,370)
$
(1,749,547)
$
—
$
(1,918,917)
(a)
Derivative
financial
instruments
are
swaps,
futures
contracts
and
options
written.
Swaps
and
futures
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
agre
ements
of
$18,251,805
are
categorized
as
Level
2
within
the
disclosure
hierarchy.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
24
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
—
7.1%
522
Funding
CLO
I
Ltd.,
Series
2019-4A,
Class
D,
(LIBOR
USD
3
Month
+
3.85%),
4.12%,
04/20/30
(a)(b)
....................
USD
1,000
$
994,341
AIG
CLO
Ltd.,
Series
2019-2A,
Class
A,
(LIBOR
USD
3
Month
+
1.36%),
1.60%,
10/25/32
(a)(b)
....................
3,000
2,994,145
AIMCO
CLO,
Series
2017-AA,
Class
C,
(LIBOR
USD
3
Month
+
2.45%),
2.72%,
07/20/29
(a)(b)
1,000
979,415
AIMCO
CLO
10
Ltd.,
Series
2019-10A,
Class
D,
(LIBOR
USD
3
Month
+
3.55%),
3.81%,
07/22/32
(a)(b)
....................
750
744,806
Ajax
Mortgage
Loan
Trust
(b)
:
Series
2017-D,
Class
A,
3.75%,
12/25/57
703
705,695
Series
2018-A,
Class
A,
3.85%,
04/25/58
(c)
1,814
1,804,821
Series
2018-E,
Class
A,
4.38%,
06/25/58
(d)
2,689
2,758,898
Series
2018-F,
Class
A,
4.38%,
11/25/58
(c)(d)
2,740
2,762,552
Series
2018-G,
Class
A,
4.38%,
06/25/57
(c)(d)
2,549
2,485,024
Series
2019-E,
Class
A,
3.00%,
09/25/59
(e)
2,410
2,393,646
Series
2019-E,
Class
B,
4.88%,
09/25/59
(e)
280
241,858
Series
2019-E,
Class
C,
0.00%,
09/25/59
646
346,196
Allegro
CLO
II-S
Ltd.,
Series
2014-1RA,
Class
B,
(LIBOR
USD
3
Month
+
2.15%),
2.42%,
10/21/28
(a)(b)
....................
1,000
979,451
ALM
Ltd.,
Series
2020-1A,
Class
A2,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
10/15/29
(a)(b)
3,000
2,997,655
ALM
XVI
Ltd.
(a)(b)
:
Series
2015-16A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.90%),
2.18%,
07/15/27
..
1,200
1,168,564
Series
2015-16A,
Class
CR2,
(LIBOR
USD
3
Month
+
2.70%),
2.98%,
07/15/27
..
1,000
968,127
Anchorage
Capital
CLO
4-R
Ltd.
(a)(b)
:
Series
2014-4RA,
Class
C,
(LIBOR
USD
3
Month
+
1.85%),
2.10%,
01/28/31
...
1,000
958,477
Series
2014-4RA,
Class
D,
(LIBOR
USD
3
Month
+
2.60%),
2.85%,
01/28/31
...
1,000
906,451
Anchorage
Capital
CLO
Ltd.,
Series
2013-1A,
Class
CR,
(LIBOR
USD
3
Month
+
3.20%),
3.47%,
10/13/30
(a)(b)
...............
1,000
983,324
Anchorage
Capital
Europe
CLO
2
DAC,
Series
2X,
Class
E,
(EURIBOR
3
Month
+
5.66%),
5.66%,
05/15/31
(a)
................
EUR
140
154,219
Apidos
CLO
XV,
Series
2013-15A,
Class
CRR,
(LIBOR
USD
3
Month
+
1.85%),
2.12%,
04/20/31
(a)(b)
....................
USD
500
473,379
Apidos
CLO
XX
(a)(b)
:
Series
2015-20A,
Class
BRR,
(LIBOR
USD
3
Month
+
1.95%),
2.22%,
07/16/31
..
1,000
942,065
Series
2015-20A,
Class
CR,
(LIBOR
USD
3
Month
+
2.95%),
3.22%,
07/16/31
...
1,500
1,425,077
Apidos
CLO
XXII,
Series
2015-22A,
Class
CR,
(LIBOR
USD
3
Month
+
2.95%),
3.22%,
04/20/31
(a)(b)
....................
500
473,668
Apidos
CLO
XXXII,
Series
2019-32A,
Class
C,
(LIBOR
USD
3
Month
+
2.40%),
2.67%,
01/20/33
(a)(b)
....................
500
498,851
Arbour
CLO
IV
DAC,
Series
4X,
Class
E,
(EURIBOR
3
Month
+
5.60%),
5.60%,
01/15/30
(a)
.....................
EUR
183
204,632
Ares
XLIV
CLO
Ltd.,
Series
2017-44A,
Class
C,
(LIBOR
USD
3
Month
+
3.45%),
3.72%,
10/15/29
(a)(b)
....................
USD
1,000
965,112
Ares
XLIX
CLO
Ltd.,
Series
2018-49A,
Class
D,
(LIBOR
USD
3
Month
+
3.00%),
3.26%,
07/22/30
(a)(b)
....................
1,000
952,340
Ares
XXXVII
CLO
Ltd.
(a)(b)
:
Series
2015-4A,
Class
BR,
(LIBOR
USD
3
Month
+
1.80%),
2.08%,
10/15/30
...
250
237,194
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2015-4A,
Class
CR,
(LIBOR
USD
3
Month
+
2.65%),
2.93%,
10/15/30
...
USD
1,000
$
957,491
Atrium
XV,
Series
15A,
Class
D,
(LIBOR
USD
3
Month
+
3.00%),
3.26%,
01/23/31
(a)(b)
...
500
482,364
Avoca
CLO
XV
DAC,
Series
15X,
Class
ER,
(EURIBOR
3
Month
+
4.13%),
4.13%,
04/15/31
(a)
.....................
EUR
260
265,184
Bear
Stearns
Asset-Backed
Securities
I
Trust,
Series
2007-HE5,
Class
1A4,
(LIBOR
USD
1
Month
+
0.30%),
0.45%,
06/25/47
(a)
...
USD
3,300
3,027,587
CIFC
Funding
Ltd.
(a)(b)
:
Series
2013-4A,
Class
DRR,
(LIBOR
USD
3
Month
+
2.80%),
3.04%,
04/27/31
...
1,000
944,062
Series
2016-1A,
Class
BR,
(LIBOR
USD
3
Month
+
1.95%),
2.22%,
10/21/31
...
1,000
993,560
Series
2016-1A,
Class
CR,
(LIBOR
USD
3
Month
+
2.80%),
3.07%,
10/21/31
...
1,000
988,914
Series
2017-1A,
Class
D,
(LIBOR
USD
3
Month
+
3.50%),
3.77%,
04/23/29
...
1,000
920,602
Series
2017-5A,
Class
B,
(LIBOR
USD
3
Month
+
1.85%),
2.12%,
11/16/30
...
1,500
1,414,669
Dryden
50
Senior
Loan
Fund,
Series
2017-50A,
Class
C,
(LIBOR
USD
3
Month
+
2.25%),
2.53%,
07/15/30
(a)(b)
...............
2,000
1,931,775
Dryden
86
CLO
Ltd.,
Series
2020-86A,
Class
C,
(LIBOR
USD
3
Month
+
2.80%),
3.03%,
07/17/30
(a)(b)(c)
...................
1,500
1,500,000
Flatiron
CLO
19
Ltd.
(a)(b)
:
Series
2019-1A,
Class
C,
(LIBOR
USD
3
Month
+
2.70%),
2.98%,
11/16/32
...
1,000
988,737
Series
2019-1A,
Class
D,
(LIBOR
USD
3
Month
+
3.90%),
4.18%,
11/16/32
...
1,500
1,500,939
Galaxy
XVIII
CLO
Ltd.,
Series
2018-28A,
Class
C,
(LIBOR
USD
3
Month
+
1.95%),
2.23%,
07/15/31
(a)(b)
....................
500
479,624
GoldenTree
Loan
Management
US
CLO
5
Ltd.,
Series
2019-5A,
Class
D,
(LIBOR
USD
3
Month
+
3.85%),
4.12%,
10/20/32
(a)(b)
...
1,000
999,912
Greene
King
Finance
plc,
Series
B1,  (LIBOR
GBP
3
Month
+
1.80%),
1.86%,
12/15/34
(a)
GBP
100
112,326
Greywolf
CLO
V
Ltd.,
Series
2015-1A,
Class
BR,
(LIBOR
USD
3
Month
+
2.00%),
2.24%,
01/27/31
(a)(b)
....................
USD
500
468,697
Gulf
Stream
Meridian
1
Ltd.
(a)(b)
:
Series
2020-IA,
Class
A1,
(LIBOR
USD
3
Month
+
1.37%),
1.64%,
04/15/33
...
3,000
2,994,106
Series
2020-IA,
Class
B,
(LIBOR
USD
3
Month
+
2.00%),
2.27%,
04/15/33
...
2,000
1,999,991
Harvest
CLO
XVI
DAC,
Series
16X,
Class
ER,
(EURIBOR
3
Month
+
5.57%),
5.57%,
10/15/31
(a)
.....................
EUR
330
359,586
Kayne
CLO
5
Ltd.,
Series
2019-5A,
Class
D,
(LIBOR
USD
3
Month
+
3.80%),
4.06%,
07/24/32
(a)(b)
....................
USD
500
499,709
Kayne
CLO
I
Ltd.,
Series
2018-1A,
Class
C,
(LIBOR
USD
3
Month
+
2.00%),
2.27%,
07/15/31
(a)(b)
....................
1,000
966,262
Legacy
Mortgage
Asset
Trust,
Series
2019-
SL2,
Class
A,
3.38%,
02/25/59
(b)(c)(d)
....
2,784
2,791,950
Mariner
CLO
LLC,
Series
2015-1A,
Class
CR2,
(LIBOR
USD
3
Month
+
1.90%),
2.17%,
04/20/29
(a)(b)
....................
2,000
1,940,060
Mariner
CLO
Ltd.,
Series
2017-4A,
Class
D,
(LIBOR
USD
3
Month
+
3.05%),
3.30%,
10/26/29
(a)(b)
....................
1,300
1,252,524
BlackRock
Income
Fund
Schedules
of
Investments
25
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
Morgan
Stanley
ABS
Capital
I,
Inc.
Trust,
Series
2007-HE6,
Class
A2,
(LIBOR
USD
1
Month
+
0.14%),
0.29%,
05/25/37
(a)
....
USD
3,357
$
2,893,789
Neuberger
Berman
CLO
XVII
Ltd.,
Series
2014-
17A,
Class
CR2,
(LIBOR
USD
3
Month
+
2.00%),
2.26%,
04/22/29
(a)(b)
.........
1,000
954,708
Neuberger
Berman
CLO
XXII
Ltd.,
Series
2016-22A,
Class
CR,
(LIBOR
USD
3
Month
+
2.20%),
2.47%,
10/17/30
(a)(b)
........
1,000
958,299
Neuberger
Berman
CLO
XXIII
Ltd.,
Series
2016-23A,
Class
DR,
(LIBOR
USD
3
Month
+
2.90%),
3.17%,
10/17/27
(a)(b)
........
500
484,007
OCP
CLO
Ltd.
(a)(b)
:
Series
2015-8A,
Class
CR,
(LIBOR
USD
3
Month
+
2.80%),
3.07%,
04/17/27
...
500
487,667
Series
2020-18A,
Class
D,
(LIBOR
USD
3
Month
+
4.33%),
4.58%,
04/20/30
...
250
248,611
OCP
Euro
CLO
DAC
(a)
:
Series
2017-2X,
Class
E,
(EURIBOR
3
Month
+
5.00%),
5.00%,
01/15/32
...
EUR
148
162,203
Series
2017-2X,
Class
F,
(EURIBOR
3
Month
+
6.40%),
6.40%,
01/15/32
...
100
99,638
Octagon
Investment
Partners
28
Ltd.,
Series
2016-1A,
Class
C1R,
(LIBOR
USD
3
Month
+
2.25%),
2.51%,
10/24/30
(a)(b)
........
USD
1,000
959,032
OCTAGON
INVESTMENT
PARTNERS
31
LLC,
Series
2017-1A,
Class
C,
(LIBOR
USD
3
Month
+
2.40%),
2.67%,
07/20/30
(a)(b)
...
1,000
994,436
OHA
Credit
Funding
4
Ltd.,
Series
2019-4A,
Class
D,
(LIBOR
USD
3
Month
+
3.75%),
4.01%,
10/22/32
(a)(b)
...............
1,000
986,038
OHA
Credit
Funding
5
Ltd.,
Series
2020-5A,
Class
D,
(LIBOR
USD
3
Month
+
3.00%),
4.31%,
04/18/33
(a)(b)
...............
500
478,363
OHA
Credit
Partners
XI
Ltd.,
Series
2015-11A,
Class
DR,
(LIBOR
USD
3
Month
+
2.95%),
3.22%,
01/20/32
(a)(b)
...............
500
466,468
Option
One
Mortgage
Loan
Trust,
Series
2007-
FXD1,
Class
2A1,
5.87%,
01/25/37
(e)
....
1,134
1,120,486
OZLME
BV,
Series
1X,
Class
ER,
(EURIBOR
3
Month
+
5.90%),
5.90%,
01/18/30
(a)
....
EUR
158
177,617
OZLME
II
DAC,
Series
2X,
Class
E,
(EURIBOR
3
Month
+
4.90%),
4.90%,
10/15/30
(a)
...
100
104,402
Palmer
Square
CLO
Ltd.
(a)(b)
:
Series
2013-2A,
Class
BRR,
(LIBOR
USD
3
Month
+
2.20%),
2.47%,
10/17/31
...
USD
2,000
1,925,787
Series
2015-1A,
Class
BR2,
(LIBOR
USD
3
Month
+
2.25%),
2.50%,
05/21/29
...
500
486,834
Series
2015-2A,
Class
CR2,
(LIBOR
USD
3
Month
+
2.75%),
3.02%,
07/20/30
...
500
467,902
Series
2018-2A,
Class
A2,
(LIBOR
USD
3
Month
+
1.65%),
1.92%,
07/16/31
...
1,000
995,116
Series
2019-1A,
Class
B,
(LIBOR
USD
3
Month
+
2.65%),
2.91%,
11/14/32
...
1,000
982,442
Series
2019-1A,
Class
C,
(LIBOR
USD
3
Month
+
3.75%),
4.01%,
11/14/32
...
1,000
991,726
Series
2020-1A,
Class
C,
(LIBOR
USD
3
Month
+
3.00%),
3.30%,
04/20/29
...
1,000
982,417
Palmer
Square
Loan
Funding
Ltd.,
Series
2019-3A,
Class
A2,
(LIBOR
USD
3
Month
+
1.60%),
1.85%,
08/20/27
(a)(b)
.........
1,500
1,480,634
Park
Avenue
Institutional
Advisers
CLO
Ltd.,
Series
2019-1A,
Class
C,
(LIBOR
USD
3
Month
+
3.85%),
4.13%,
05/15/32
(a)(b)
...
1,500
1,478,140
Progress
Residential
Trust,
Series
2019-SFR4,
Class
E,
3.44%,
10/17/36
(b)
..........
3,000
3,071,825
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
Prudential
plc,
Series
2018-1A,
Class
C,
(LIBOR
USD
3
Month
+
2.15%),
2.43%,
07/15/31
(a)(b)
....................
USD
1,000
$
957,268
Regata
XII
Funding
Ltd.,
Series
2019-1A,
Class
D,
(LIBOR
USD
3
Month
+
3.75%),
4.03%,
10/15/32
(a)(b)
....................
1,000
991,493
Regatta
VII
Funding
Ltd.,
Series
2016-1A,
Class
DR,
(LIBOR
USD
3
Month
+
2.75%),
2.98%,
12/20/28
(a)(b)
...............
1,000
933,051
Regatta
XVI
Funding
Ltd.
(a)(b)
:
Series
2019-2A,
Class
C,
(LIBOR
USD
3
Month
+
2.70%),
2.98%,
01/15/33
...
1,000
984,006
Series
2019-2A,
Class
D,
(LIBOR
USD
3
Month
+
3.90%),
4.17%,
01/15/33
...
1,000
999,984
Rockford
Tower
CLO
Ltd.
(a)(b)
:
Series
2017-3A,
Class
A,
(LIBOR
USD
3
Month
+
1.19%),
1.46%,
10/20/30
...
1,500
1,493,926
Series
2018-2A,
Class
C,
(LIBOR
USD
3
Month
+
2.20%),
2.47%,
10/20/31
...
500
481,165
Series
2018-2A,
Class
D,
(LIBOR
USD
3
Month
+
3.10%),
3.37%,
10/20/31
...
500
480,454
Series
2019-1A,
Class
D,
(LIBOR
USD
3
Month
+
3.85%),
4.12%,
04/20/32
...
500
497,268
RRE
1
Loan
Management
DAC,
Series
1X,
Class
E,
(EURIBOR
3
Month
+
5.95%),
5.95%,
04/15/32
(a)
................
EUR
300
335,758
TCW
CLO
Ltd.
(a)(b)
:
Series
2017-1A,
Class
CR,
(LIBOR
USD
3
Month
+
2.05%),
2.32%,
07/29/29
...
USD
1,000
965,025
Series
2017-1A,
Class
DR,
(LIBOR
USD
3
Month
+
3.15%),
3.42%,
07/29/29
...
1,000
968,824
Series
2018-1A,
Class
CR,
(LIBOR
USD
3
Month
+
3.40%),
3.64%,
04/25/31
...
1,000
991,130
TICP
CLO
IX
Ltd.
(a)(b)
:
Series
2017-9A,
Class
B,
(LIBOR
USD
3
Month
+
1.60%),
1.87%,
01/20/31
...
500
489,337
Series
2017-9A,
Class
D,
(LIBOR
USD
3
Month
+
2.90%),
3.17%,
01/20/31
...
1,000
952,329
TICP
CLO
V
Ltd.,
Series
2016-5A,
Class
DR,
(LIBOR
USD
3
Month
+
3.15%),
3.42%,
07/17/31
(a)(b)
....................
1,050
1,002,237
TICP
CLO
VIII
Ltd.,
Series
2017-8A,
Class
C,
(LIBOR
USD
3
Month
+
3.10%),
3.37%,
10/20/30
(a)(b)
....................
1,000
974,301
TICP
CLO
XI
Ltd.
(a)(b)
:
Series
2018-11A,
Class
C,
(LIBOR
USD
3
Month
+
2.15%),
2.42%,
10/20/31
...
600
583,530
Series
2018-11A,
Class
D,
(LIBOR
USD
3
Month
+
3.05%),
3.32%,
10/20/31
...
1,050
1,014,555
TICP
CLO
XV
Ltd.
(a)(b)
:
Series
2020-15A,
Class
A,
(LIBOR
USD
3
Month
+
1.28%),
2.92%,
04/20/33
...
3,500
3,496,610
Series
2020-15A,
Class
C,
(LIBOR
USD
3
Month
+
2.15%),
3.79%,
04/20/33
...
1,000
961,366
Trestles
CLO
III
Ltd.,
Series
2020-3A,
Class
B1,
(LIBOR
USD
3
Month
+
1.85%),
2.12%,
01/20/33
(a)(b)
....................
1,000
999,995
Vericrest
Opportunity
Loan
Trust,
Series
2019-
NPL2,
Class
A1,
3.97%,
02/25/49
(b)(e)
...
1,866
1,867,191
Westcott
Park
CLO
Ltd.,
Series
2016-1A,
Class
CR,
(LIBOR
USD
3
Month
+
2.25%),
2.52%,
07/20/28
(a)(b)
....................
500
480,446
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
26
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
York
CLO
1
Ltd.,
Series
2014-1A,
Class
DRR,
(LIBOR
USD
3
Month
+
3.01%),
3.27%,
10/22/29
(a)(b)
....................
USD
1,000
$
941,245
Total
Asset-Backed
Securities
—
7.1%
(Cost:
$115,719,452)
.............................
114,561,695
Shares
Common
Stocks
—
0.2%
Building
Products
—
0.0%
AZEK
Co.,
Inc.
(The)
(f)
...............
234
8,146
Chemicals
—
0.1%
Element
Solutions,
Inc.
(f)
..............
51,799
544,407
Commercial
Services
&
Supplies
—
0.0%
Preston
Holdings
LLC
(c)(f)
..............
1,227
9,816
Construction
&
Engineering
—
0.0%
Mcdermott
International
Ltd.
(f)
...........
48,333
115,999
Consumer
Finance
—
0.0%
Arrow
Global
Group
plc
...............
10,661
17,471
Diversified
Telecommunication
Services
—
0.0%
Telecom
Italia
SpA
..................
109,444
44,191
Entertainment
—
0.0%
Live
Nation
Entertainment,
Inc.
(f)
.........
3,488
187,933
Equity
Real
Estate
Investment
Trusts
(REITs)
—
0.1%
Gaming
and
Leisure
Properties,
Inc.
......
14,814
547,081
VICI
Properties,
Inc.
.................
36,414
850,995
1,398,076
Health
Care
Providers
&
Services
—
0.0%
New
Millennium
Holdco,
Inc.
(c)(f)
.........
3,880
4
Life
Sciences
Tools
&
Services
—
0.0%
PPD,
Inc.
(f)
.......................
1,022
37,804
Machinery
—
0.0%
(f)
AFGlobal
Corp.
(c)
...................
897
—
Ameriforge
Group,
Inc.
...............
283
4,669
4,669
Marine
—
0.0%
Projector
SA
(c)(f)
....................
1,227
—
Media
—
0.0%
Clear
Channel
Outdoor
Holdings,
Inc.
(f)
....
76,920
76,920
Metals
&
Mining
—
0.0%
Constellium
SE,
Class
A
(f)
.............
50,427
395,852
Pharmaceuticals
—
0.0%
Bausch
Health
Cos.,
Inc.
(f)
.............
24,785
385,159
Professional
Services
—
0.0%
NMG
Inc.
(f)
.......................
1,905
80,963
Software
—
0.0%
Avaya
Holdings
Corp.
(f)
...............
12
182
Total
Common
Stocks
—
0.2%
(Cost:
$3,936,596)
..............................
3,307,592
Security
Par
(000)
Value
Corporate
Bonds
—
65.5%
Aerospace
&
Defense
—
1.8%
Boeing
Co.
(The),
5.15%,
05/01/30
......
USD
4,790
$
5,384,002
Bombardier,
Inc.
(b)
:
8.75%,
12/01/21
.................
524
530,770
5.75%,
03/15/22
.................
46
44,574
6.00%,
10/15/22
.................
162
150,255
6.13%,
01/15/23
.................
202
172,710
7.50%,
12/01/24
.................
171
131,242
7.50%,
03/15/25
.................
836
627,000
7.88%,
04/15/27
.................
615
466,440
BWX
Technologies,
Inc.
(b)
:
5.38%,
07/15/26
.................
471
489,251
4.13%,
06/30/28
.................
292
298,570
F-Brasile
SpA,
Series
XR,
7.38%,
08/15/26
(b)
400
338,000
General
Dynamics
Corp.,
4.25%,
04/01/50
.
960
1,253,811
Howmet
Aerospace,
Inc.,
5.13%,
10/01/24
.
161
170,660
Kratos
Defense
&
Security
Solutions,
Inc.,
6.50%,
11/30/25
(b)
...............
366
382,090
L3Harris
Technologies,
Inc.,
4.40%,
06/15/28
300
357,605
Northrop
Grumman
Corp.,
5.25%,
05/01/50
.
2,320
3,328,032
Raytheon
Technologies
Corp.:
4.63%,
11/16/48
.................
120
156,731
3.13%,
07/01/50
.................
2,365
2,522,460
Rolls-Royce
plc:
0.88%,
05/09/24
.................
EUR
600
609,422
1.63%,
05/09/28
.................
200
187,508
Signature
Aviation
US
Holdings,
Inc.
(b)
:
5.38%,
05/01/26
.................
USD
294
296,940
4.00%,
03/01/28
.................
410
381,300
Spirit
AeroSystems
Inc.,
5.50%,
01/15/25
(b)
.
233
234,165
SSL
Robotics
LLC,
9.75%,
12/31/23
(b)
....
48
52,871
TransDigm,
Inc.
(b)
:
8.00%,
12/15/25
.................
740
804,750
6.25%,
03/15/26
.................
8,204
8,567,396
Triumph
Group,
Inc.,
8.88%,
06/01/24
(b)
...
823
876,495
28,815,050
Air
Freight
&
Logistics
—
0.0%
FedEx
Corp.,
4.05%,
02/15/48
.........
155
178,733
XPO
Logistics,
Inc.,
6.25%,
05/01/25
(b)
....
74
79,077
257,810
Airlines
—
0.2%
American
Airlines,
Inc.,
11.75%,
07/15/25
(b)
.
183
176,595
Delta
Air
Lines,
Inc.
(b)
:
7.00%,
05/01/25
.................
387
424,936
4.50%,
10/20/25
.................
230
236,176
4.75%,
10/20/28
.................
680
706,030
easyJet
plc,
0.88%,
06/11/25
..........
EUR
400
386,897
International
Consolidated
Airlines
Group
SA:
0.63%,
11/17/22
(g)
................
100
95,250
0.50%,
07/04/23
.................
200
185,833
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
(b)
USD
1,345
1,400,481
Spirit
Loyalty
Cayman
Ltd.,
8.00%,
09/20/25
(b)
91
96,106
3,708,304
Auto
Components
—
1.0%
Adient
US
LLC,
9.00%,
04/15/25
(b)
......
190
209,475
Allison
Transmission,
Inc.,
5.88%,
06/01/29
(b)
770
832,755
Clarios
Global
LP:
6.75%,
05/15/25
(b)
................
657
691,492
4.38%,
05/15/26
.................
EUR
1,034
1,213,829
6.25%,
05/15/26
(b)
................
USD
1,853
1,942,963
8.50%,
05/15/27
(b)
................
3,172
3,275,090
Continental
AG,
2.50%,
08/27/26
.......
EUR
200
254,660
Dealer
Tire
LLC,
8.00%,
02/01/28
(b)
......
USD
468
477,360
BlackRock
Income
Fund
Schedules
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Auto
Components
(continued)
Faurecia
SE:
2.63%,
06/15/25
.................
EUR
393
$
453,146
3.75%,
06/15/28
.................
227
264,542
Goodyear
Europe
BV,
3.75%,
12/15/23
...
400
458,306
Goodyear
Tire
&
Rubber
Co.
(The),
9.50%,
05/31/25
.....................
USD
241
261,485
Icahn
Enterprises
LP:
6.75%,
02/01/24
.................
725
743,687
4.75%,
09/15/24
.................
93
94,163
6.38%,
12/15/25
.................
125
128,496
6.25%,
05/15/26
.................
569
593,182
5.25%,
05/15/27
.................
114
118,765
IHO
Verwaltungs
GmbH,
3.88%,
05/15/27
(h)
.
EUR
500
586,436
ZF
Europe
Finance
BV:
2.00%,
02/23/26
.................
300
320,753
2.50%,
10/23/27
.................
1,000
1,066,092
ZF
Finance
GmbH:
3.00%,
09/21/25
.................
500
570,088
3.75%,
09/21/28
.................
600
680,607
15,237,372
Automobiles
—
0.7%
Fiat
Chrysler
Automobiles
NV,
4.50%,
07/07/28
225
300,074
Ford
Motor
Co.:
8.50%,
04/21/23
.................
USD
238
259,420
4.35%,
12/08/26
.................
30
29,612
4.75%,
01/15/43
.................
104
94,164
5.29%,
12/08/46
.................
75
70,359
General
Motors
Co.:
6.13%,
10/01/25
.................
990
1,150,042
6.80%,
10/01/27
.................
614
747,817
5.00%,
10/01/28
.................
572
643,194
Jaguar
Land
Rover
Automotive
plc,
4.50%,
01/15/26
.....................
EUR
200
194,709
Nissan
Motor
Co.
Ltd.:
3.20%,
09/17/28
.................
625
738,551
4.81%,
09/17/30
(b)
................
USD
4,571
4,598,448
Peugeot
SA,
2.75%,
05/15/26
.........
EUR
100
125,584
RCI
Banque
SA,
(EUR
Swap
Annual
5
Year
+
2.85%),
2.63%,
02/18/30
(a)
..........
600
668,769
Renault
SA,
1.25%,
06/24/25
..........
400
431,252
Tesla,
Inc.,
5.30%,
08/15/25
(b)
.........
USD
870
900,450
Volvo
Car
AB,
2.50%,
10/07/27
........
EUR
390
457,256
Winnebago
Industries,
Inc.,
6.25%,
07/15/28
(b)
USD
162
170,910
11,580,611
Banks
—
6.3%
AIB
Group
plc
(a)(i)
:
(EUR
Swap
Annual
5
Year
+
5.70%),
5.25%
EUR
400
445,478
(EUR
Swap
Annual
5
Year
+
6.63%),
6.25%
3,000
3,508,557
Allied
Irish
Banks
plc,
(EUR
Swap
Annual
5
Year
+
7.34%),
7.37%
(a)(i)
...........
200
235,090
Banco
Bilbao
Vizcaya
Argentaria
SA:
(EUR
Swap
Annual
5
Year
+
5.66%),
5.87%
(a)(i)
....................
800
922,718
1.00%,
06/21/26
.................
400
476,013
Banco
de
Credito
e
Inversiones
SA,
3.50%,
10/12/27
.....................
USD
1,205
1,311,191
Banco
de
Sabadell
SA
(a)
:
(EUR
Swap
Annual
5
Year
+
6.41%),
6.50%
(i)
.....................
EUR
200
209,545
(EUR
Swap
Annual
5
Year
+
2.20%),
2.00%,
01/17/30
...............
300
304,736
Banco
General
SA,
4.13%,
08/07/27
.....
USD
1,179
1,300,216
Banco
Inbursa
SA
Institucion
De
Banca
Multiple
Grupo
Financiero
Inbursa:
4.13%,
06/06/24
.................
653
685,854
Security
Par
(000)
Value
Banks
(continued)
4.38%,
04/11/27
.................
USD
170
$
178,500
Banco
Internacional
del
Peru
SAA
Interbank,
3.25%,
10/04/26
................
1,248
1,303,380
Banco
Santander
Mexico
SA
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand,
5.38%,
04/17/25
(b)
...............
1,149
1,272,345
Banco
Santander
SA
(a)(i)
:
(EUR
Swap
Annual
5
Year
+
6.80%),
6.75%
EUR
2,600
3,180,590
(EUR
Swap
Annual
5
Year
+
4.53%),
4.37%
400
423,254
Bangkok
Bank
PCL
(a)
:
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.73%),
5.00%
(i)
.....................
USD
950
950,000
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.90%),
3.73%,
09/25/34
...............
5,300
5,162,531
Bank
of
America
Corp.:
(LIBOR
USD
3
Month
+
0.87%),
2.46%,
10/22/25
(a)
...................
530
558,793
Series
L,
4.18%,
11/25/27
..........
2,000
2,291,436
(LIBOR
USD
3
Month
+
1.18%),
3.19%,
07/23/30
(a)
...................
850
935,141
Bank
of
East
Asia
Ltd.
(The),
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.26%),
5.87%
(a)(i)
...........
1,477
1,478,846
Bank
of
Ireland
Group
plc:
1.38%,
08/29/23
.................
EUR
150
178,995
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.50%),
4.12%,
09/19/27
(a)
..............
USD
200
198,833
Bankia
SA
(a)
:
(EUR
Swap
Annual
5
Year
+
5.82%),
6.00%
(i)
.....................
EUR
200
236,249
(EUR
Swap
Annual
5
Year
+
6.22%),
6.37%
(i)
.....................
400
479,068
(EUR
Swap
Annual
5
Year
+
3.62%),
3.75%,
02/15/29
...............
100
123,862
Barclays
plc
(a)
:
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
6.58%),
7.12%
(i)
..
GBP
2,400
3,222,262
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
6.02%),
6.37%
(i)
..
2,200
2,807,089
(EUR
Swap
Annual
1
Year
+
0.78%),
1.38%,
01/24/26
...............
EUR
375
447,804
BBVA
Bancomer
SA,
4.38%,
04/10/24
....
USD
650
697,327
BNP
Paribas
SA
(i)
:
6.50%
........................
22
22,261
(USD
Swap
Rate
5
Year
+
4.15%),
6.63%
(a)
2,200
2,329,250
(USD
Swap
Semi
5
Year
+
5.15%),
7.38%
(a)
400
445,500
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.94%),
4.50%
(a)(b)
....................
200
191,750
Burgan
Bank
SAK,
(USD
Swap
Semi
5
Year
+
4.01%),
5.75%
(a)(i)
...............
256
253,280
CaixaBank
SA
(a)(i)
:
(EUR
Swap
Annual
5
Year
+
6.50%),
6.75%
EUR
200
243,570
(EUR
Swap
Annual
5
Year
+
4.50%),
5.25%
600
652,271
CBQ
Finance
Ltd.,
3.25%,
06/13/21
......
USD
1,173
1,187,663
China
Construction
Bank
Corp.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.15%),
2.45%,
06/24/30
(a)
.....
1,400
1,400,546
Chong
Hing
Bank
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.86%),
5.70%
(a)(i)
..............
250
248,748
CIT
Group,
Inc.:
5.00%,
08/01/23
.................
800
830,000
4.75%,
02/16/24
.................
94
96,761
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
28
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Banks
(continued)
Citigroup,
Inc.:
(LIBOR
USD
3
Month
+
1.02%),
4.04%,
06/01/24
(a)
...................
USD
500
$
541,678
(LIBOR
USD
3
Month
+
0.90%),
3.35%,
04/24/25
(a)
...................
610
659,974
(SOFR
+
2.75%),
3.11%,
04/08/26
(a)
....
4,435
4,800,162
4.30%,
11/20/26
.................
500
573,004
Commerzbank
AG:
(EUR
Swap
Annual
5
Year
+
6.36%),
6.12%
(a)(i)
....................
EUR
400
457,256
4.00%,
03/23/26
.................
150
187,288
(EUR
Swap
Annual
5
Year
+
4.35%),
4.00%,
12/05/30
(a)
..............
100
119,746
Cooperatieve
Rabobank
UA,
(EUR
Swap
Annual
5
Year
+
4.10%),
4.62%
(a)(i)
.....
200
240,707
Credit
Agricole
SA
(a)(i)
:
(EUR
Swap
Annual
5
Year
+
5.12%),
6.50%
200
239,731
(USD
Swap
Semi
5
Year
+
4.90%),
7.88%
USD
2,200
2,431,000
(USD
Swap
Semi
5
Year
+
6.19%),
8.12%
2,400
2,820,000
(GBP
Swap
5
Year
+
4.54%),
7.50%
...
GBP
200
290,437
DBS
Group
Holdings
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.92%),
3.30%
(a)(i)
..............
USD
995
995,497
Emirates
NBD
Bank
PJSC,
(USD
Swap
Semi
6
Year
+
3.66%),
6.13%
(a)(i)
...........
257
264,790
HBOS
Capital
Funding
No.
1
LP:
6.85%
(i)
.......................
2,756
2,797,340
HSBC
Holdings
plc
(a)
:
(EUR
Swap
Annual
5
Year
+
5.34%),
6.00%
(i)
.....................
EUR
2,200
2,715,148
(LIBOR
USD
3
Month
+
0.99%),
3.95%,
05/18/24
....................
USD
285
304,863
(LIBOR
USD
3
Month
+
1.61%),
3.97%,
05/22/30
....................
510
569,399
ING
Groep
NV,
(USD
Swap
Rate
5
Year
+
4.20%),
6.75%
(a)(i)
...............
725
766,688
Intesa
Sanpaolo
SpA:
1.00%,
11/19/26
.................
EUR
300
354,119
(EUR
Swap
Annual
5
Year
+
7.19%),
7.75%
(a)(i)
....................
2,600
3,424,252
5.15%,
06/10/30
.................
GBP
2,325
3,250,008
(EUR
Swap
Annual
5
Year
+
6.09%),
5.87%
(a)(i)
....................
EUR
275
314,766
JPMorgan
Chase
&
Co.:
3.63%,
12/01/27
.................
USD
300
335,938
Series
W,
(LIBOR
USD
3
Month
+
1.00%),
1.28%,
05/15/47
(a)
..............
1,000
778,306
Kasikornbank
PCL,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.70%),
3.34%,
10/02/31
(a)
..........
830
815,060
Kookmin
Bank,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.64%),
4.35%
(a)(i)
....................
500
521,719
Lloyds
Banking
Group
plc,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.00%),
2.44%,
02/05/26
(a)
........
200
207,254
Nanyang
Commercial
Bank
Ltd.
(a)
:
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.21%),
5.00%
(i)
.....................
200
197,813
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.18%),
3.80%,
11/20/29
...............
750
758,906
National
Westminster
Bank
plc
(a)(i)
:
Series
C,
(LIBOR
USD
3
Month
+
0.25%),
0.51%
......................
200
176,000
Security
Par
(000)
Value
Banks
(continued)
Series
B,
(LIBOR
USD
6
Month
+
0.25%),
0.41%
......................
USD
2,200
$
1,928,960
Natwest
Group
plc
(a)
:
(USD
Swap
Semi
5
Year
+
7.60%),
8.62%
(i)
995
1,019,875
(LIBOR
USD
3
Month
+
1.76%),
4.27%,
03/22/25
....................
630
684,346
Nordea
Bank
Abp,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.11%),
6.63%
(a)(b)(i)
..............
585
660,073
QIIB
Tier
1
Sukuk
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.19%),
4.88%
(a)(i)
..............
500
496,406
QNB
Finance
Ltd.,
2.75%,
02/12/27
......
1,231
1,283,318
Rizal
Commercial
Banking
Corp.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
6.24%),
6.50%
(a)(i)
...........
1,850
1,840,750
Santander
UK
plc,
5.00%,
11/07/23
(b)
.....
352
383,874
Shizuoka
Bank
Ltd.
(The),
(LIBOR
USD
3
Month
-
0.50%),
0.00%,
01/25/23
(a)(g)
....
100
94,895
Societe
Generale
SA,
(USD
Swap
Semi
5
Year
+
6.24%),
7.38%
(a)(b)(i)
.............
200
205,000
Stichting
AK
Rabobank
Certificaten,
0.00%
(e)(i)
EUR
2,348
3,274,279
Svenska
Handelsbanken
AB,
(USD
Swap
Semi
5
Year
+
4.05%),
5.13%
(a)(i)
..........
USD
200
200,000
TMB
Bank
PCL,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.26%),
4.90%
(a)(i)
....................
256
243,280
UniCredit
SpA
(a)
:
(EUR
Swap
Annual
5
Year
+
6.10%),
6.75%
(i)
.....................
EUR
800
938,699
(EUR
Swap
Annual
5
Year
+
9.30%),
9.25%
(i)
.....................
200
254,009
(EUR
Swap
Annual
5
Year
+
6.39%),
6.62%
(i)
.....................
400
464,230
(EURIBOR
Swap
Rate
5
Year
+
7.33%),
7.50%
(i)
.....................
2,700
3,418,636
(EURIBOR
Swap
Rate
5
Year
+
4.74%),
4.87%,
02/20/29
...............
400
496,506
(EUR
Swap
Annual
5
Year
+
2.40%),
2.00%,
09/23/29
...............
200
221,007
(EUR
Swap
Annual
5
Year
+
2.80%),
2.73%,
01/15/32
...............
200
221,007
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.75%),
5.46%,
06/30/35
(b)
..............
USD
4,725
4,813,593
Unione
di
Banche
Italiane
SpA
(a)
:
(EUR
Swap
Annual
5
Year
+
6.07%),
5.87%
(i)
.....................
EUR
200
228,335
(EUR
Swap
Annual
5
Year
+
5.75%),
5.87%,
03/04/29
...............
200
259,065
Wells
Fargo
&
Co.,
5.38%,
11/02/43
.....
USD
500
661,876
Woori
Bank,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.66%),
4.25%
(a)(i)
....................
256
260,800
100,888,971
Beverages
—
0.5%
Anheuser-Busch
InBev
Worldwide,
Inc.:
4.60%,
04/15/48
.................
750
894,334
4.44%,
10/06/48
.................
2,225
2,597,886
Coca-Cola
Femsa
SAB
de
CV:
2.75%,
01/22/30
.................
1,172
1,256,970
1.85%,
09/01/32
.................
657
662,453
Coca-Cola
Icecek
A/S,
4.22%,
09/19/24
...
250
253,594
Embotelladora
Andina
SA,
3.95%,
01/21/50
(b)
1,826
1,931,566
Fomento
Economico
Mexicano
SAB
de
CV,
3.50%,
01/16/50
................
498
525,826
BlackRock
Income
Fund
Schedules
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Beverages
(continued)
Heineken
NV:
1.25%,
05/07/33
.................
EUR
150
$
181,863
1.75%,
05/07/40
.................
100
122,585
8,427,077
Biotechnology
—
0.1%
AbbVie,
Inc.:
2.80%,
03/15/23
(b)
................
USD
1,012
1,057,980
4.88%,
11/14/48
.................
500
634,928
4.25%,
11/21/49
(b)
................
295
350,217
Emergent
BioSolutions,
Inc.,
3.88%,
08/15/28
(b)
89
89,350
2,132,475
Building
Products
—
0.3%
Advanced
Drainage
Systems,
Inc.,
5.00%,
09/30/27
(b)
....................
206
215,270
Builders
FirstSource,
Inc.,
6.75%,
06/01/27
(b)
113
121,051
Cornerstone
Building
Brands,
Inc.,
6.13%,
01/15/29
(b)
....................
284
287,661
Forterra
Finance
LLC,
6.50%,
07/15/25
(b)
..
414
437,412
Griffon
Corp.,
5.75%,
03/01/28
.........
100
104,383
HT
Troplast
GmbH,
9.25%,
07/15/25
.....
EUR
192
238,887
James
Hardie
International
Finance
DAC,
5.00%,
01/15/28
(b)
...............
USD
200
208,500
JELD-WEN,
Inc.
(b)
:
6.25%,
05/15/25
.................
150
159,750
4.63%,
12/15/25
.................
72
72,360
4.88%,
12/15/27
.................
23
23,438
Masonite
International
Corp.
(b)
:
5.75%,
09/15/26
.................
25
26,062
5.38%,
02/01/28
.................
100
106,644
Standard
Industries,
Inc.:
2.25%,
11/21/26
.................
EUR
397
444,544
5.00%,
02/15/27
(b)
................
USD
162
168,480
4.38%,
07/15/30
(b)
................
555
569,022
3.38%,
01/15/31
(b)
................
843
832,037
Summit
Materials
LLC,
5.25%,
01/15/29
(b)
..
206
214,498
Whirlpool
EMEA
Finance
SARL,
0.50%,
02/20/28
.....................
EUR
100
112,692
4,342,691
Capital
Markets
—
2.1%
Blackstone
Property
Partners
Europe
Holdings
SARL,
2.20%,
07/24/25
...........
200
245,579
CCTI
Ltd.,
3.63%,
08/08/22
...........
USD
710
719,762
Cerah
Capital
Ltd.,
0.00%,
08/08/24
(g)(j)
....
1,300
1,222,298
China
Great
Wall
International
Holdings
V
Ltd.,
2.38%,
08/18/30
................
690
662,525
Cindai
Capital
Ltd.,
0.00%,
02/08/23
(g)(j)
...
900
910,069
Credit
Suisse
Group
AG
(a)
:
(USD
Swap
Semi
5
Year
+
4.60%),
7.50%
(b)
(i)
..........................
400
422,124
(USD
Swap
Semi
5
Year
+
4.60%),
7.50%
(i)
2,200
2,321,682
(USD
Swap
Semi
5
Year
+
3.46%),
6.25%
(i)
2,400
2,570,731
(SOFR
+
1.56%),
2.59%,
09/11/25
(b)
....
1,500
1,566,370
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.33%),
7.25%
(i)
.....................
200
216,750
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.82%),
6.37%
(b)(i)
....................
350
374,063
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.89%),
5.25%
(b)(i)
....................
290
290,580
(GUKG1
+
2.23%),
2.25%,
06/09/28
...
GBP
250
331,020
Deutsche
Bank
AG,
3.15%,
01/22/21
.....
USD
500
503,025
Security
Par
(000)
Value
Capital
Markets
(continued)
Goldman
Sachs
Group,
Inc.
(The),
Series
R,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.22%),
4.95%
(a)(i)
USD
1,130
$
1,130,339
Huarong
Finance
2019
Co.
Ltd.:
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
6.98%),
4.25%
(a)(i)
....................
670
667,487
4.50%,
05/29/29
.................
500
537,344
3.38%,
02/24/30
.................
1,844
1,832,475
3.63%,
09/30/30
.................
1,030
1,046,724
Huarong
Finance
Co.
Ltd.,
3.88%,
11/13/29
.
1,000
1,028,750
Intermediate
Capital
Group
plc,
1.63%,
02/17/27
.....................
EUR
200
222,333
JAB
Holdings
BV,
3.38%,
04/17/35
......
100
137,934
LHC3
plc,
4.13%,
(4.13%
Cash
or
9.00%
PIK),
08/15/24
(k)
....................
753
887,205
Mirae
Asset
Daewoo
Co.
Ltd.,
2.63%,
07/30/25
USD
975
988,894
Morgan
Stanley
(a)
:
(SOFR
+
1.15%),
2.72%,
07/22/25
.....
1,040
1,104,763
(SOFR
+
1.99%),
2.19%,
04/28/26
.....
2,805
2,937,634
MSCI,
Inc.
(b)
:
4.00%,
11/15/29
.................
144
151,200
3.63%,
09/01/30
.................
82
84,114
3.88%,
02/15/31
.................
1,009
1,051,580
Owl
Rock
Capital
Corp.:
4.00%,
03/30/25
.................
90
90,796
3.75%,
07/22/25
.................
415
413,718
4.25%,
01/15/26
.................
221
223,879
Poseidon
Finance
1
Ltd.,
0.00%,
02/01/25
(g)(j)
1,490
1,420,563
SBI
Holdings,
Inc.,
0.00%,
09/13/23
(g)(j)
....
JPY
110,000
1,075,567
SURA
Asset
Management
SA:
4.88%,
04/17/24
.................
USD
400
433,462
4.88%,
04/17/24
.................
1,318
1,428,259
UBS
Group
AG
(a)(i)
:
(USD
Swap
Semi
5
Year
+
4.87%),
7.00%
2,200
2,444,750
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.86%),
5.13%
......................
200
204,710
Xi
Yang
Overseas
Ltd.,
4.30%,
06/05/24
...
355
370,975
34,272,033
Chemicals
—
1.7%
Arkema
SA,
0.75%,
12/03/29
..........
EUR
100
117,743
Atotech
Alpha
2
BV,
8.75%,
(8.75%
Cash
or
9.50%
PIK),
06/01/23
(b)(k)
...........
USD
1,610
1,614,025
Atotech
Alpha
3
BV,
6.25%,
02/01/25
(b)
....
2,569
2,604,324
Axalta
Coating
Systems
LLC
(b)
:
4.88%,
08/15/24
.................
300
305,625
4.75%,
06/15/27
.................
196
200,410
Blue
Cube
Spinco
LLC:
9.75%,
10/15/23
.................
342
352,687
10.00%,
10/15/25
................
570
602,775
Braskem
Netherlands
Finance
BV,
5.88%,
01/31/50
.....................
729
667,263
CeramTec
BondCo
GmbH,
5.25%,
12/15/25
EUR
300
336,118
Chemours
Co.
(The),
6.63%,
05/15/23
....
USD
1,368
1,384,409
CNAC
HK
Finbridge
Co.
Ltd.:
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
3
Year
+
6.35%),
3.35%
(a)(i)
....................
1,150
1,146,550
3.00%,
09/22/30
.................
1,150
1,133,394
Dow
Chemical
Co.
(The),
5.55%,
11/30/48
.
125
167,252
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
.
1,797
1,763,306
Gates
Global
LLC,
6.25%,
01/15/26
(b)
.....
602
620,536
GCP
Applied
Technologies,
Inc.,
5.50%,
04/15/26
(b)
....................
546
556,920
Illuminate
Buyer
LLC,
9.00%,
07/01/28
(b)
...
333
357,975
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
30
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Chemicals
(continued)
K+S
AG,
3.00%,
06/20/22
............
EUR
100
$
114,607
Kraton
Polymers
LLC,
5.25%,
05/15/26
...
345
407,529
Kronos
International,
Inc.,
3.75%,
09/15/25
.
100
115,486
Minerals
Technologies,
Inc.,
5.00%,
07/01/28
(b)
USD
196
202,819
Monitchem
HoldCo
2
SA,
9.50%,
09/15/26
.
EUR
100
120,443
Monitchem
HoldCo
3
SA,
5.25%,
03/15/25
.
696
828,266
NOVA
Chemicals
Corp.,
4.88%,
06/01/24
(b)
.
USD
21
20,849
Nutrition
&
Biosciences,
Inc.,
3.47%,
12/01/50
(b)
3,100
3,130,000
OCI
NV:
5.00%,
04/15/23
.................
EUR
300
359,805
3.13%,
11/01/24
.................
100
116,366
5.25%,
11/01/24
(b)
................
USD
200
206,340
3.63%,
10/15/25
.................
EUR
385
451,393
Orbia
Advance
Corp.
SAB
de
CV:
4.00%,
10/04/27
.................
USD
659
708,219
5.50%,
01/15/48
.................
1,563
1,752,514
Pearl
Holding
III
Ltd.,
9.50%,
12/11/22
....
1,000
220,305
PQ
Corp.,
5.75%,
12/15/25
(b)
..........
615
632,681
Rock
International
Investment,
Inc.,
6.63%,
03/27/20
(f)(l)
...................
1,000
300,000
Sociedad
Quimica
y
Minera
de
Chile
SA:
4.25%,
05/07/29
.................
824
937,017
4.25%,
01/22/50
(b)
................
400
437,500
Solvay
SA,
2.75%,
12/02/27
..........
EUR
100
134,750
Synthomer
plc,
3.88%,
07/01/25
........
334
398,451
Valvoline,
Inc.,
4.25%,
02/15/30
(b)
.......
USD
227
231,540
WR
Grace
&
Co.,
5.63%,
10/01/24
(b)
.....
216
229,500
WR
Grace
&
Co.-Conn.,
4.88%,
06/15/27
(b)
.
327
337,693
Yingde
Gases
Investment
Ltd.,
6.25%,
01/19/23
(b)
....................
200
206,563
26,531,948
Commercial
Services
&
Supplies
—
1.3%
ACCO
Brands
Corp.,
5.25%,
12/15/24
(b)
...
64
65,520
ADT
Security
Corp.
(The):
4.13%,
06/15/23
.................
32
33,472
4.88%,
07/15/32
(b)
................
585
590,850
Allied
Universal
Holdco
LLC
(b)
:
6.63%,
07/15/26
.................
3,020
3,216,300
9.75%,
07/15/27
.................
1,877
2,039,398
APX
Group,
Inc.:
7.88%,
12/01/22
.................
93
93,000
8.50%,
11/01/24
.................
76
80,180
6.75%,
02/15/27
(b)
................
539
559,212
Aramark
Services,
Inc.:
5.00%,
04/01/25
(b)
................
1,299
1,317,706
6.38%,
05/01/25
(b)
................
245
255,210
4.75%,
06/01/26
.................
158
159,864
5.00%,
02/01/28
(b)
................
200
201,500
Brink's
Co.
(The),
5.50%,
07/15/25
(b)
.....
135
140,738
Clean
Harbors,
Inc.
(b)
:
4.88%,
07/15/27
.................
332
344,450
5.13%,
07/15/29
.................
383
415,505
Covanta
Holding
Corp.,
5.00%,
09/01/30
..
106
106,986
Garda
World
Security
Corp.
(b)
:
4.63%,
02/15/27
.................
254
255,270
9.50%,
11/01/27
.................
214
224,700
GFL
Environmental,
Inc.
(b)
:
4.25%,
06/01/25
.................
86
86,860
3.75%,
08/01/25
.................
310
311,713
7.00%,
06/01/26
.................
882
929,804
5.13%,
12/15/26
.................
1,126
1,162,708
8.50%,
05/01/27
.................
320
347,200
IAA,
Inc.,
5.50%,
06/15/27
(b)
..........
384
399,840
Intrum
AB:
3.13%,
07/15/24
.................
EUR
300
330,631
4.88%,
08/15/25
.................
207
237,843
Security
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
3.50%,
07/15/26
.................
EUR
151
$
160,664
ISS
Global
A/S,
1.50%,
08/31/27
.......
100
118,275
KAR
Auction
Services,
Inc.,
5.13%,
06/01/25
(b)
USD
552
551,989
Nielsen
Finance
LLC
(b)
:
5.63%,
10/01/28
.................
500
517,150
5.88%,
10/01/30
.................
352
364,320
Prime
Security
Services
Borrower
LLC
(b)
:
5.25%,
04/15/24
.................
320
335,200
5.75%,
04/15/26
.................
156
166,823
3.38%,
08/31/27
.................
608
583,221
6.25%,
01/15/28
.................
1,024
1,036,800
Techem
Verwaltungsgesellschaft
674
mbH,
6.00%,
07/30/26
................
EUR
600
715,774
Techem
Verwaltungsgesellschaft
675
mbH,
2.00%,
07/15/25
................
300
335,028
Verisure
Holding
AB:
3.50%,
05/15/23
.................
100
117,726
(EURIBOR
3
Month
+
5.00%),
5.00%,
04/15/25
(a)
...................
300
355,308
3.88%,
07/15/26
.................
326
382,410
Verisure
Midholding
AB,
5.75%,
12/01/23
..
400
468,203
Waste
Pro
USA,
Inc.,
5.50%,
02/15/26
(b)
...
USD
821
830,844
20,946,195
Communications
Equipment
—
0.3%
Avaya,
Inc.,
6.13%,
09/15/28
(b)
.........
728
742,269
CommScope
Technologies
LLC,
6.00%,
06/15/25
(b)
....................
462
468,260
CommScope,
Inc.
(b)
:
5.50%,
03/01/24
.................
868
891,931
6.00%,
03/01/26
.................
277
288,772
8.25%,
03/01/27
.................
48
49,920
Nokia
OYJ:
4.38%,
06/12/27
.................
11
11,681
6.63%,
05/15/39
.................
79
97,866
ViaSat,
Inc.
(b)
:
5.63%,
04/15/27
.................
1,059
1,089,446
6.50%,
07/15/28
.................
453
453,657
Xiaomi
Best
Time
International
Ltd.,
3.38%,
04/29/30
(b)
....................
900
941,344
5,035,146
Construction
&
Engineering
—
0.3%
Brand
Industrial
Services,
Inc.,
8.50%,
07/15/25
(b)
....................
582
549,990
China
Shandong
International
Economic
&
Technical
Finance
1
Ltd.,
4.00%,
12/21/20
600
599,502
China
Shuifa
Singyes
Energy
Holdings
Ltd.,
2.00%,
(2.00%
Cash
or
6.00%
PIK),
12/19/22
(k)
....................
895
803,557
Delhi
International
Airport
Ltd.:
6.45%,
06/04/29
(b)
................
200
199,063
6.45%,
06/04/29
.................
525
522,539
Ferrovial
Netherlands
BV,
(EUR
Swap
Annual
5
Year
+
2.13%),
2.12%
(a)(i)
...........
EUR
700
769,540
GMR
Hyderabad
International
Airport
Ltd.,
4.25%,
10/27/27
................
USD
200
177,000
Heathrow
Finance
plc,
4.13%,
09/01/29
...
GBP
543
640,403
Heathrow
Funding
Ltd.,
1.88%,
03/14/34
..
EUR
100
108,871
Leader
Goal
International
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
6.92%),
4.25%
(a)(i)
...........
USD
200
204,250
MasTec,
Inc.,
4.50%,
08/15/28
(b)
........
290
292,900
New
Enterprise
Stone
&
Lime
Co.,
Inc.
(b)
:
6.25%,
03/15/26
.................
70
72,100
9.75%,
07/15/28
.................
97
104,760
Pike
Corp.,
5.50%,
09/01/28
(b)
.........
198
199,226
BlackRock
Income
Fund
Schedules
of
Investments
31
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Construction
&
Engineering
(continued)
Weekley
Homes
LLC,
4.88%,
09/15/28
(b)
...
USD
92
$
92,920
5,336,621
Construction
Materials
—
0.2%
CEMEX
Finance
LLC,
4.63%,
06/15/24
...
EUR
300
358,330
Cemex
SAB
de
CV,
3.13%,
03/19/26
.....
300
352,284
HeidelbergCement
Finance
Luxembourg
SA,
1.75%,
04/24/28
................
200
246,666
Holcim
Finance
Luxembourg
SA,
2.25%,
05/26/28
.....................
200
262,649
Inversiones
CMPC
SA:
4.75%,
09/15/24
.................
USD
600
658,500
3.85%,
01/13/30
.................
593
644,146
US
Concrete,
Inc.,
5.13%,
03/01/29
(b)
.....
120
120,300
2,642,875
Consumer
Finance
—
1.7%
AerCap
Ireland
Capital
DAC,
4.50%,
05/15/21
200
203,811
Ally
Financial,
Inc.,
8.00%,
11/01/31
.....
1,480
2,026,304
Encore
Capital
Group,
Inc.,
4.88%,
10/15/25
EUR
246
287,459
FCE
Bank
plc:
2.73%,
06/03/22
.................
GBP
100
126,810
1.62%,
05/11/23
.................
EUR
900
1,015,635
Ford
Motor
Credit
Co.
LLC:
5.88%,
08/02/21
.................
USD
1,529
1,557,669
2.98%,
08/03/22
.................
738
726,930
3.35%,
11/01/22
.................
811
798,835
3.09%,
01/09/23
.................
200
195,978
3.81%,
01/09/24
.................
609
602,910
3.02%,
03/06/24
.................
EUR
200
229,507
1.74%,
07/19/24
.................
132
143,967
4.06%,
11/01/24
.................
USD
200
199,750
5.13%,
06/16/25
.................
768
792,000
4.13%,
08/04/25
.................
379
375,367
3.25%,
09/15/25
.................
EUR
125
142,624
2.33%,
11/25/25
.................
700
764,086
4.39%,
01/08/26
.................
USD
700
692,013
2.39%,
02/17/26
.................
EUR
300
327,020
5.11%,
05/03/29
.................
USD
656
672,400
General
Motors
Financial
Co.,
Inc.:
3.55%,
04/09/21
.................
140
141,854
3.20%,
07/06/21
.................
1,000
1,015,132
4.20%,
11/06/21
.................
475
490,269
5.20%,
03/20/23
.................
1,685
1,827,960
2.75%,
06/20/25
.................
4,105
4,199,900
5.65%,
01/17/29
.................
79
92,155
Global
Aircraft
Leasing
Co.
Ltd.,
6.50%,
(6.50%
Cash
or
7.25%
PIK),
09/15/24
(b)(k)
......
323
171,484
Hanhui
International
Ltd.,
4.37%,
08/22/22
.
570
581,998
LeasePlan
Corp.
NV,
(EURIBOR
3
Month
+
0.50%),
0.05%,
01/25/21
(a)
..........
EUR
200
234,420
Manappuram
Finance
Ltd.,
5.90%,
01/13/23
USD
900
880,313
Muthoot
Finance
Ltd.,
4.40%,
09/02/23
...
200
195,063
Navient
Corp.:
5.00%,
10/26/20
.................
171
171,000
7.25%,
09/25/23
.................
70
72,275
6.13%,
03/25/24
.................
97
97,727
5.88%,
10/25/24
.................
13
12,927
6.75%,
06/25/25
.................
108
109,350
6.75%,
06/15/26
.................
224
223,440
5.00%,
03/15/27
.................
26
24,415
New
Lion
Bridge
Co.
Ltd.,
9.75%,
10/10/20
.
1,430
1,419,275
OneMain
Finance
Corp.:
6.13%,
05/15/22
.................
22
22,825
6.88%,
03/15/25
.................
150
166,451
8.88%,
06/01/25
.................
97
107,428
7.13%,
03/15/26
.................
714
797,681
Security
Par
(000)
Value
Consumer
Finance
(continued)
6.63%,
01/15/28
.................
USD
448
$
497,190
5.38%,
11/15/29
.................
87
90,480
Shriram
Transport
Finance
Co.
Ltd.,
5.10%,
07/16/23
.....................
300
275,156
Synchrony
Financial,
2.85%,
07/25/22
....
245
252,141
Universe
Trek
Ltd.,
2.50%,
07/08/25
(g)
....
1,000
981,890
Volkswagen
International
Finance
NV,
4.13%,
11/16/38
.....................
EUR
100
157,659
27,190,933
Containers
&
Packaging
—
0.8%
ARD
Finance
SA,
6.50%,
06/30/27
(b)
.....
USD
1,179
1,172,869
Ardagh
Packaging
Finance
plc:
5.25%,
04/30/25
(b)
................
244
254,980
4.13%,
08/15/26
(b)
................
755
765,381
4.75%,
07/15/27
.................
GBP
600
775,930
5.25%,
08/15/27
(b)
................
USD
1,143
1,164,717
Ball
Corp.:
4.88%,
03/15/26
.................
133
148,295
2.88%,
08/15/30
.................
337
333,209
Crown
Americas
LLC,
4.75%,
02/01/26
...
378
392,175
Crown
Cork
&
Seal
Co.,
Inc.,
7.38%,
12/15/26
177
209,966
DS
Smith
plc:
0.88%,
09/12/26
.................
EUR
100
116,875
2.88%,
07/26/29
.................
GBP
100
133,796
Graham
Packaging
Co.,
Inc.,
7.13%,
08/15/28
(b)
USD
125
130,156
Graphic
Packaging
International
LLC
(b)
:
4.75%,
07/15/27
.................
123
133,147
3.50%,
03/15/28
.................
58
57,855
3.50%,
03/01/29
.................
127
127,794
Intelligent
Packaging
Ltd.
Finco,
Inc.,
6.00%,
09/15/28
(b)
....................
154
156,164
Intertape
Polymer
Group,
Inc.,
7.00%,
10/15/26
(b)
....................
257
269,850
LABL
Escrow
Issuer
LLC,
6.75%,
07/15/26
(b)
707
745,885
Mauser
Packaging
Solutions
Holding
Co.:
4.75%,
04/15/24
.................
EUR
549
625,902
5.50%,
04/15/24
(b)
................
USD
626
628,216
OI
European
Group
BV,
2.88%,
02/15/25
..
EUR
500
576,129
Silgan
Holdings,
Inc.,
4.13%,
02/01/28
....
USD
103
105,318
Trivium
Packaging
Finance
BV
(e)
:
3.75%,
08/15/26
.................
EUR
500
578,792
5.50%,
08/15/26
(b)
................
USD
1,450
1,501,439
8.50%,
08/15/27
(b)
................
1,658
1,787,697
12,892,537
Distributors
—
0.2%
(b)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
4.00%,
01/15/28
.............
346
351,623
Core
&
Main
LP,
6.13%,
08/15/25
.......
2,274
2,303,391
Wolverine
Escrow
LLC:
8.50%,
11/15/24
.................
149
122,180
9.00%,
11/15/26
.................
192
158,400
2,935,594
Diversified
Consumer
Services
—
0.1%
frontdoor,
Inc.,
6.75%,
08/15/26
(b)
.......
285
303,525
Graham
Holdings
Co.,
5.75%,
06/01/26
(b)
..
110
115,775
Laureate
Education,
Inc.,
8.25%,
05/01/25
(b)
42
44,520
New
Oriental
Education
&
Technology
Group,
Inc.,
2.13%,
07/02/25
.............
404
394,910
Service
Corp.
International:
5.13%,
06/01/29
.................
68
75,353
3.38%,
08/15/30
.................
306
306,382
ServiceMaster
Co.
LLC
(The),
5.13%,
11/15/24
(b)
....................
310
316,975
Sotheby's,
7.38%,
10/15/27
(b)
..........
500
500,000
2,057,440
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
32
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Diversified
Financial
Services
—
1.5%
Arrow
Global
Finance
plc,
5.13%,
09/15/24
.
GBP
300
$
365,187
Blue
Bright
Ltd.,
2.50%,
06/04/25
.......
USD
400
399,628
Cabot
Financial
Luxembourg
SA,
7.50%,
10/01/23
.....................
GBP
900
1,170,989
China
Development
Bank
Financial
Leasing
Co.
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.75%),
2.88%,
09/28/30
(a)
...............
USD
1,000
996,397
Coastal
Emerald
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
7.45%),
4.30%
(a)(i)
...............
595
600,578
Fairstone
Financial,
Inc.,
7.88%,
07/15/24
(b)
.
128
131,200
Garfunkelux
Holdco
3
SA:
7.50%,
08/01/22
.................
EUR
630
681,030
8.50%,
11/01/22
.................
GBP
300
354,979
(EURIBOR
3
Month
+
3.50%),
3.50%,
09/01/23
(a)
...................
EUR
100
104,491
GE
Capital
Funding
LLC,
4.40%,
05/15/30
(b)
USD
5,000
5,369,544
Inventive
Global
Investments
Ltd.,
1.65%,
09/03/25
.....................
1,290
1,276,666
MAR
Sukuk
Ltd.,
2.21%,
09/02/25
.......
1,400
1,401,173
MPH
Acquisition
Holdings
LLC,
7.13%,
06/01/24
(b)
....................
2,115
2,172,845
ProGroup
AG,
3.00%,
03/31/26
........
EUR
100
115,936
Refinitiv
US
Holdings,
Inc.:
4.50%,
05/15/26
.................
896
1,097,936
6.25%,
05/15/26
(b)
................
USD
1,782
1,906,740
8.25%,
11/15/26
(b)
................
1,156
1,265,820
Sabre
GLBL,
Inc.
(b)
:
5.25%,
11/15/23
.................
54
52,785
9.25%,
04/15/25
.................
451
496,357
7.38%,
09/01/25
.................
293
295,930
Verscend
Escrow
Corp.,
9.75%,
08/15/26
(b)
.
3,544
3,853,356
24,109,567
Diversified
Telecommunication
Services
—
3.4%
Altice
France
Holding
SA:
8.00%,
05/15/27
(b)
................
EUR
100
124,280
8.00%,
05/15/27
.................
1,200
1,491,356
10.50%,
05/15/27
(b)
...............
USD
4,421
4,912,836
6.00%,
02/15/28
(b)
................
584
557,014
Altice
France
SA:
7.38%,
05/01/26
(b)
................
1,354
1,418,856
5.88%,
02/01/27
.................
EUR
250
309,452
8.13%,
02/01/27
(b)
................
USD
898
978,820
5.50%,
01/15/28
(b)
................
496
502,200
4.13%,
01/15/29
.................
EUR
254
297,609
5.13%,
01/15/29
(b)
................
USD
200
199,250
AT&T,
Inc.:
2.45%,
03/15/35
.................
EUR
100
130,081
4.50%,
03/09/48
.................
USD
856
982,358
3.65%,
09/15/59
(b)
................
165
162,088
CCO
Holdings
LLC
(b)
:
5.13%,
05/01/27
.................
812
854,402
5.00%,
02/01/28
.................
14
14,700
5.38%,
06/01/29
.................
373
404,239
4.75%,
03/01/30
.................
587
621,486
4.50%,
08/15/30
.................
1,144
1,201,252
4.25%,
02/01/31
.................
1,194
1,237,536
4.50%,
05/01/32
.................
1,919
2,002,956
Cellnex
Telecom
SA,
2.38%,
01/16/24
....
EUR
100
123,366
CenturyLink,
Inc.:
Series
W,
6.75%,
12/01/23
..........
USD
533
584,301
Series
Y,
7.50%,
04/01/24
..........
106
118,678
5.13%,
12/15/26
(b)
................
2,363
2,427,723
4.00%,
02/15/27
(b)
................
703
714,185
Series
P,
7.60%,
09/15/39
..........
271
306,197
Security
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
Series
U,
7.65%,
03/15/42
..........
USD
375
$
419,062
Cincinnati
Bell,
Inc.
(b)
:
7.00%,
07/15/24
.................
170
174,996
8.00%,
10/15/25
.................
82
86,613
Consolidated
Communications,
Inc.,
6.50%,
10/01/28
(b)
....................
249
253,980
Deutsche
Telekom
International
Finance
BV,
3.25%,
01/17/28
................
EUR
100
141,503
Frontier
Communications
Corp.
(b)(e)
:
8.50%,
04/01/26
.................
USD
278
280,224
8.00%,
04/01/27
.................
3,566
3,553,679
Global
Switch
Finance
BV,
1.38%,
10/07/30
.
EUR
200
233,081
Global
Switch
Holdings
Ltd.,
2.25%,
05/31/27
200
251,203
Intelsat
Jackson
Holdings
SA,
8.00%,
02/15/24
(b)(e)
...................
USD
574
582,610
Level
3
Financing,
Inc.:
5.25%,
03/15/26
.................
175
181,291
4.63%,
09/15/27
(b)
................
220
226,050
4.25%,
07/01/28
(b)
................
1,210
1,228,537
3.63%,
01/15/29
(b)
................
454
448,325
Lorca
Telecom
Bondco
SAU,
4.00%,
09/18/27
EUR
313
372,970
Network
i2i
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.27%),
5.65%
(a)(i)
....................
USD
256
254,480
Oi
SA,
10.00%,
(10.00%
Cash
or
4.00%
PIK),
07/27/25
(k)
....................
180
172,941
Ooredoo
International
Finance
Ltd.,
3.75%,
06/22/26
.....................
1,139
1,267,137
Orange
SA,
0.50%,
09/04/32
..........
EUR
300
346,169
QualityTech
LP
(b)
:
4.75%,
11/15/25
.................
USD
476
493,707
3.88%,
10/01/28
.................
364
366,403
Sable
International
Finance
Ltd.,
5.75%,
09/07/27
(b)
....................
200
208,576
Sprint
Capital
Corp.:
6.88%,
11/15/28
.................
405
506,250
8.75%,
03/15/32
.................
1,401
2,050,798
Switch
Ltd.,
3.75%,
09/15/28
(b)
.........
411
415,110
Telecom
Italia
Capital
SA:
6.38%,
11/15/33
.................
648
771,120
6.00%,
09/30/34
.................
822
953,520
7.20%,
07/18/36
.................
324
408,629
7.72%,
06/04/38
.................
142
188,860
Telecom
Italia
Finance
SA,
7.75%,
01/24/33
EUR
500
838,302
Telecom
Italia
SpA:
1.13%,
03/26/22
(g)
................
100
116,282
5.30%,
05/30/24
(b)
................
USD
695
752,338
2.38%,
10/12/27
.................
EUR
300
351,155
5.25%,
03/17/55
.................
500
684,326
Telefonica
Emisiones
SA,
2.93%,
10/17/29
.
200
283,777
Telesat
Canada
(b)
:
4.88%,
06/01/27
.................
USD
773
776,130
6.50%,
10/15/27
.................
24
24,173
Verizon
Communications,
Inc.:
1.38%,
10/27/26
.................
EUR
150
187,411
3.88%,
02/08/29
.................
USD
325
384,476
4.50%,
08/10/33
.................
500
634,168
2.88%,
01/15/38
.................
EUR
150
217,389
5.50%,
03/16/47
.................
USD
225
338,905
5.01%,
04/15/49
.................
290
417,415
4.00%,
03/22/50
.................
780
960,278
Virgin
Media
Finance
plc:
3.75%,
07/15/30
.................
EUR
742
830,648
Virgin
Media
Secured
Finance
plc:
5.50%,
08/15/26
(b)
................
USD
200
208,500
5.50%,
05/15/29
(b)
................
655
703,110
BlackRock
Income
Fund
Schedules
of
Investments
33
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
4.25%,
01/15/30
.................
GBP
500
$
634,969
4.50%,
08/15/30
(b)
................
USD
400
410,976
Zayo
Group
Holdings,
Inc.
(b)
:
4.00%,
03/01/27
.................
2,700
2,657,407
6.13%,
03/01/28
.................
2,043
2,108,785
54,035,965
Electric
Utilities
—
1.2%
Adani
Electricity
Mumbai
Ltd.,
3.95%,
02/12/30
800
780,500
Adani
Transmission
Ltd.,
4.25%,
05/21/36
..
871
867,142
AES
Panama
Generation
Holdings
SRL,
4.38%,
05/31/30
(b)
...............
985
1,009,317
China
Huadian
Overseas
Development
2018
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
6.07%),
3.38%
(a)(i)
1,030
1,051,887
Drax
Finco
plc,
4.25%,
05/01/22
........
GBP
100
129,378
Duke
Energy
Corp.,
3.95%,
08/15/47
.....
USD
750
885,947
Enel
Finance
International
NV,
4.25%,
09/14/23
(b)
....................
595
651,207
Engie
Energia
Chile
SA,
3.40%,
01/28/30
..
1,214
1,311,120
Entergy
Corp.,
3.75%,
06/15/50
........
740
838,340
Exelon
Corp.,
4.45%,
04/15/46
.........
200
242,704
FirstEnergy
Transmission
LLC,
4.55%,
04/01/49
(b)
....................
715
840,530
Huachen
Energy
Co.
Ltd.,
6.63%,
05/18/20
(f)(l)
275
99,086
LLPL
Capital
Pte.
Ltd.,
6.88%,
02/04/39
...
446
515,159
Mong
Duong
Finance
Holdings
BV,
5.13%,
05/07/29
.....................
256
259,920
Naturgy
Finance
BV,
1.88%,
10/05/29
....
EUR
100
131,700
NextEra
Energy
Capital
Holdings,
Inc.:
2.75%,
11/01/29
.................
USD
495
536,760
2.25%,
06/01/30
.................
6,000
6,213,168
NextEra
Energy
Operating
Partners
LP
(b)
:
4.25%,
07/15/24
.................
148
154,320
4.25%,
09/15/24
.................
60
62,550
NRG
Energy,
Inc.:
3.75%,
06/15/24
(b)
................
63
67,253
6.63%,
01/15/27
.................
144
152,280
4.45%,
06/15/29
(b)
................
291
320,638
5.25%,
06/15/29
(b)
................
105
114,188
Oncor
Electric
Delivery
Co.
LLC,
3.10%,
09/15/49
.....................
165
181,341
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(b)
....................
667
692,012
PG&E
Corp.,
5.25%,
07/01/30
.........
400
387,000
Texas
Competitive
Electric
Holdings
Co.
LLC,
Escrow,
5.10%,
12/31/49
(c)(f)(l)
........
815
—
Virginia
Electric
&
Power
Co.,
Series
B,
3.80%,
09/15/47
.....................
500
606,719
Vistra
Operations
Co.
LLC,
4.30%,
07/15/29
(b)
409
446,433
19,548,599
Electrical
Equipment
—
0.1%
Orano
SA,
2.75%,
03/08/28
..........
EUR
200
231,371
Sensata
Technologies
BV
(b)
:
5.63%,
11/01/24
.................
USD
123
133,455
5.00%,
10/01/25
.................
886
952,450
1,317,276
Electronic
Equipment,
Instruments
&
Components
—
0.3%
Belden,
Inc.:
4.13%,
10/15/26
.................
EUR
210
249,908
3.88%,
03/15/28
.................
200
234,490
CDW
LLC:
5.50%,
12/01/24
.................
USD
1,002
1,093,432
4.13%,
05/01/25
.................
168
173,460
3.25%,
02/15/29
.................
603
600,739
Ingenico
Group
SA,
1.63%,
09/13/24
.....
EUR
200
240,528
Security
Par
(000)
Value
Electronic
Equipment,
Instruments
&
Components
(continued)
Innolux
Corp.,
Series
1,
0.00%,
01/22/25
(g)(j)
.
USD
1,200
$
1,302,584
Itron,
Inc.,
5.00%,
01/15/26
(b)
..........
7
7,175
LG
Display
Co.
Ltd.,
Series
3,
1.50%,
08/22/24
(g)
....................
400
417,901
Sensata
Technologies,
Inc.
(b)
:
4.38%,
02/15/30
.................
317
332,850
3.75%,
02/15/31
.................
294
292,163
Zhen
Ding
Technology
Holding
Ltd.,
0.00%,
06/30/25
(g)(j)
...................
400
422,000
5,367,230
Energy
Equipment
&
Services
—
0.2%
Anton
Oilfield
Services
Group,
7.50%,
12/02/22
800
451,750
Archrock
Partners
LP
(b)
:
6.88%,
04/01/27
.................
285
272,996
6.25%,
04/01/28
.................
203
191,327
ChampionX
Corp.,
6.38%,
05/01/26
......
138
131,816
Hilong
Holding
Ltd.,
8.25%,
09/26/22
(f)(l)
...
2,695
1,344,131
Tervita
Corp.,
7.63%,
12/01/21
(b)
........
403
367,738
Transocean,
Inc.,
11.50%,
01/30/27
(b)
.....
104
42,661
USA
Compression
Partners
LP:
6.88%,
04/01/26
.................
698
691,893
6.88%,
09/01/27
.................
329
326,243
3,820,555
Entertainment
—
0.5%
Banijay
Entertainment
SASU,
3.50%,
03/01/25
EUR
100
114,157
Lions
Gate
Capital
Holdings
LLC
(b)
:
6.38%,
02/01/24
.................
USD
74
73,260
5.88%,
11/01/24
.................
108
106,110
Live
Nation
Entertainment,
Inc.:
2.50%,
03/15/23
(g)
................
220
245,051
6.50%,
05/15/27
(b)
................
1,585
1,710,595
Netflix,
Inc.:
5.88%,
11/15/28
.................
500
596,602
5.38%,
11/15/29
(b)
................
1,024
1,206,938
4.88%,
06/15/30
(b)
................
1,020
1,162,800
Pinewood
Finance
Co.
Ltd.,
3.25%,
09/30/25
GBP
575
738,687
Tencent
Music
Entertainment
Group,
2.00%,
09/03/30
.....................
USD
1,212
1,184,451
WMG
Acquisition
Corp.
(b)
:
5.50%,
04/15/26
.................
3
3,113
3.88%,
07/15/30
.................
232
239,237
3.00%,
02/15/31
.................
79
76,808
7,457,809
Equity
Real
Estate
Investment
Trusts
(REITs)
—
1.4%
American
Tower
Corp.,
3.13%,
01/15/27
...
1,000
1,091,955
Brookfield
Property
REIT,
Inc.,
5.75%,
05/15/26
(b)
....................
714
562,682
Crown
Castle
International
Corp.:
3.80%,
02/15/28
.................
1,000
1,134,508
3.30%,
07/01/30
.................
865
945,940
4.15%,
07/01/50
.................
580
662,952
Diversified
Healthcare
Trust,
9.75%,
06/15/25
287
319,224
GLP
Capital
LP:
3.35%,
09/01/24
.................
70
71,002
5.25%,
06/01/25
.................
348
377,865
5.38%,
04/15/26
.................
131
145,187
5.30%,
01/15/29
.................
50
55,684
4.00%,
01/15/30
.................
325
336,375
4.00%,
01/15/31
.................
325
338,335
Iron
Mountain
UK
plc,
3.88%,
11/15/25
....
GBP
400
521,207
Iron
Mountain,
Inc.
(b)
:
5.25%,
03/15/28
.................
USD
194
202,003
4.88%,
09/15/29
.................
40
40,700
5.25%,
07/15/30
.................
482
502,485
4.50%,
02/15/31
.................
103
103,968
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
34
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
5.63%,
07/15/32
.................
USD
627
$
662,112
MGM
Growth
Properties
Operating
Partnership
LP:
5.63%,
05/01/24
.................
1,518
1,609,505
4.63%,
06/15/25
(b)
................
507
517,140
4.50%,
09/01/26
.................
669
678,710
5.75%,
02/01/27
.................
36
38,790
4.50%,
01/15/28
.................
541
551,144
MPT
Operating
Partnership
LP:
5.00%,
10/15/27
.................
1,333
1,389,919
4.63%,
08/01/29
.................
496
516,073
Park
Intermediate
Holdings
LLC,
5.88%,
10/01/28
(b)
....................
112
111,720
Prologis
International
Funding
II
SA,
1.63%,
06/17/32
.....................
EUR
125
157,844
RHP
Hotel
Properties
LP,
4.75%,
10/15/27
.
USD
659
607,545
SBA
Communications
Corp.:
4.88%,
09/01/24
.................
505
517,575
3.88%,
02/15/27
(b)
................
1,465
1,486,975
Service
Properties
Trust:
4.50%,
06/15/23
.................
50
49,034
4.35%,
10/01/24
.................
46
41,630
7.50%,
09/15/25
.................
395
419,766
Trust
Fibra
Uno,
4.87%,
01/15/30
(b)
......
905
911,109
Uniti
Group
LP:
6.00%,
04/15/23
(b)
................
374
376,104
8.25%,
10/15/23
.................
269
264,965
7.88%,
02/15/25
(b)
................
212
224,657
VICI
Properties
LP
(b)
:
3.50%,
02/15/25
.................
318
314,822
4.25%,
12/01/26
.................
1,137
1,142,287
3.75%,
02/15/27
.................
470
462,142
4.63%,
12/01/29
.................
1,004
1,021,570
4.13%,
08/15/30
.................
1,450
1,426,437
22,911,647
Food
&
Staples
Retailing
—
0.3%
Albertsons
Cos.,
Inc.
(b)
:
3.25%,
03/15/26
.................
531
526,922
4.63%,
01/15/27
.................
1,196
1,223,735
5.88%,
02/15/28
.................
336
358,680
4.88%,
02/15/30
.................
346
360,705
Casino
Guichard
Perrachon
SA,
3.58%,
02/07/25
(e)
....................
EUR
400
354,301
Picard
Groupe
SAS,
(EURIBOR
3
Month
+
3.00%),
3.00%,
11/30/23
(a)
..........
600
682,338
Quatrim
SASU,
5.88%,
01/15/24
.......
300
335,887
Tesco
Corporate
Treasury
Services
plc,
0.88%,
05/29/26
.....................
125
149,067
US
Foods,
Inc.,
6.25%,
04/15/25
(b)
......
USD
142
150,343
4,141,978
Food
Products
—
1.2%
Bunge
Finance
Europe
BV,
1.85%,
06/16/23
EUR
100
119,400
China
Mengniu
Dairy
Co.
Ltd.,
1.50%,
06/24/23
(g)
....................
USD
1,400
1,487,864
Chobani
LLC,
7.50%,
04/15/25
(b)
.......
1,918
1,982,771
FPC
Resources
Ltd.,
4.38%,
09/11/27
....
1,500
1,516,875
Gruma
SAB
de
CV,
4.88%,
12/01/24
.....
760
844,550
Grupo
Bimbo
SAB
de
CV,
4.00%,
09/06/49
.
1,304
1,367,977
JBS
USA
LUX
SA
(b)
:
5.75%,
06/15/25
.................
374
384,678
6.75%,
02/15/28
.................
2
2,170
6.50%,
04/15/29
.................
763
846,907
Knight
Castle
Investments
Ltd.,
7.99%,
01/23/21
.....................
1,400
983,938
Security
Par
(000)
Value
Food
Products
(continued)
Kraft
Heinz
Foods
Co.:
3.88%,
05/15/27
(b)
................
USD
57
$
60,375
4.25%,
03/01/31
(b)
................
1,085
1,190,409
5.00%,
07/15/35
.................
107
123,210
6.88%,
01/26/39
.................
219
293,342
4.63%,
10/01/39
(b)
................
67
71,130
6.50%,
02/09/40
.................
145
184,283
5.00%,
06/04/42
.................
9
9,856
5.20%,
07/15/45
.................
237
259,096
4.38%,
06/01/46
.................
289
296,927
4.88%,
10/01/49
(b)
................
1,440
1,519,657
5.50%,
06/01/50
(b)
................
2,415
2,767,724
Lamb
Weston
Holdings,
Inc.,
4.88%,
05/15/28
(b)
372
401,760
Post
Holdings,
Inc.
(b)
:
5.00%,
08/15/26
.................
224
229,600
5.63%,
01/15/28
.................
463
491,285
4.63%,
04/15/30
.................
175
180,031
Premier
Foods
Finance
plc,
6.25%,
10/15/23
GBP
400
528,837
Simmons
Foods,
Inc.,
7.75%,
01/15/24
(b)
..
USD
283
296,442
Tingyi
Cayman
Islands
Holding
Corp.,
1.63%,
09/24/25
.....................
1,070
1,061,585
TreeHouse
Foods,
Inc.,
4.00%,
09/01/28
..
141
142,605
19,645,284
Gas
Utilities
—
0.1%
China
Oil
&
Gas
Group
Ltd.,
5.50%,
01/25/23
200
204,813
Ferrellgas
LP,
10.00%,
04/15/25
(b)
.......
555
600,787
Infraestructura
Energetica
Nova
SAB
de
CV,
4.75%,
01/15/51
(b)
...............
709
658,927
1,464,527
Health
Care
Equipment
&
Supplies
—
0.5%
Avantor
Funding,
Inc.,
4.63%,
07/15/28
(b)
..
1,177
1,221,137
Becton
Dickinson
and
Co.:
4.67%,
06/06/47
.................
275
339,570
3.79%,
05/20/50
.................
1,310
1,465,256
Hologic,
Inc.
(b)
:
4.63%,
02/01/28
.................
488
512,586
3.25%,
02/15/29
.................
173
174,081
Ortho-Clinical
Diagnostics,
Inc.
(b)
:
7.38%,
06/01/25
.................
693
703,395
7.25%,
02/01/28
.................
2,473
2,571,920
Stryker
Corp.,
0.75%,
03/01/29
........
EUR
200
236,869
Teleflex,
Inc.,
4.25%,
06/01/28
(b)
........
USD
488
505,080
7,729,894
Health
Care
Providers
&
Services
—
1.8%
Acadia
Healthcare
Co.,
Inc.
(b)
:
5.50%,
07/01/28
.................
237
243,757
5.00%,
04/15/29
.................
154
156,118
AdaptHealth
LLC,
6.13%,
08/01/28
(b)
.....
170
175,984
AHP
Health
Partners,
Inc.,
9.75%,
07/15/26
(b)
1,265
1,356,712
Anthem,
Inc.,
2.88%,
09/15/29
.........
325
351,058
Centene
Corp.:
5.38%,
06/01/26
(b)
................
13
13,699
5.38%,
08/15/26
(b)
................
936
991,388
4.25%,
12/15/27
.................
298
311,836
4.63%,
12/15/29
.................
1,737
1,873,632
3.38%,
02/15/30
.................
22
22,825
3.00%,
10/15/30
.................
830
846,766
Community
Health
Systems,
Inc.
(b)
:
8.63%,
01/15/24
.................
1,052
1,046,740
6.63%,
02/15/25
.................
1,699
1,643,783
8.00%,
03/15/26
.................
2,046
2,011,218
CVS
Health
Corp.,
5.05%,
03/25/48
......
600
765,845
Encompass
Health
Corp.:
4.50%,
02/01/28
.................
54
54,270
4.75%,
02/01/30
.................
76
77,105
BlackRock
Income
Fund
Schedules
of
Investments
35
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Health
Care
Providers
&
Services
(continued)
4.63%,
04/01/31
.................
USD
131
$
131,000
HCA,
Inc.:
5.38%,
02/01/25
.................
349
382,155
5.88%,
02/15/26
.................
7
7,840
5.38%,
09/01/26
.................
419
462,995
5.63%,
09/01/28
.................
193
220,782
5.88%,
02/01/29
.................
350
407,750
3.50%,
09/01/30
.................
2,219
2,260,895
LifePoint
Health,
Inc.
(b)
:
6.75%,
04/15/25
.................
190
199,975
4.38%,
02/15/27
.................
360
360,450
MEDNAX,
Inc.
(b)
:
5.25%,
12/01/23
.................
88
89,100
6.25%,
01/15/27
.................
350
363,111
Molina
Healthcare,
Inc.
(b)
:
4.88%,
06/15/25
.................
31
31,620
4.38%,
06/15/28
.................
302
308,191
Polaris
Intermediate
Corp.,
8.50%,
(8.50%
Cash
or
9.25%
PIK),
12/01/22
(b)(k)
......
275
280,044
RegionalCare
Hospital
Partners
Holdings,
Inc.,
9.75%,
12/01/26
(b)
...............
40
42,500
Surgery
Center
Holdings,
Inc.
(b)
:
6.75%,
07/01/25
.................
1,592
1,584,040
10.00%,
04/15/27
................
1,294
1,378,110
Synlab
Bondco
plc,
(EURIBOR
3
Month
+
4.75%),
4.75%,
07/01/25
(a)
..........
EUR
375
444,351
Synlab
Unsecured
Bondco
plc,
8.25%,
07/01/23
.....................
200
239,766
Tenet
Healthcare
Corp.:
8.13%,
04/01/22
.................
USD
930
1,034,067
4.63%,
09/01/24
(b)
................
219
220,778
7.50%,
04/01/25
(b)
................
182
195,650
4.88%,
01/01/26
(b)
................
1,685
1,715,600
6.25%,
02/01/27
(b)
................
25
25,805
5.13%,
11/01/27
(b)
................
1,542
1,583,943
4.63%,
06/15/28
(b)
................
165
167,376
6.13%,
10/01/28
(b)
................
530
515,425
UnitedHealth
Group,
Inc.,
3.50%,
08/15/39
.
800
919,056
Vizient,
Inc.,
6.25%,
05/15/27
(b)
........
511
535,273
West
Street
Merger
Sub,
Inc.,
6.38%,
09/01/25
(b)
....................
510
520,093
28,570,477
Health
Care
Technology
—
0.1%
IQVIA,
Inc.
(b)
:
5.00%,
10/15/26
.................
400
418,000
5.00%,
05/15/27
.................
573
600,831
1,018,831
Hotels,
Restaurants
&
Leisure
—
2.6%
1011778
BC
ULC
(b)
:
4.25%,
05/15/24
.................
84
85,550
5.75%,
04/15/25
.................
320
341,600
5.00%,
10/15/25
.................
1,872
1,919,474
3.88%,
01/15/28
.................
448
456,422
4.38%,
01/15/28
.................
467
476,247
4.00%,
10/15/30
.................
82
82,632
Boyd
Gaming
Corp.:
8.63%,
06/01/25
(b)
................
292
320,114
6.38%,
04/01/26
.................
118
122,860
4.75%,
12/01/27
.................
207
203,119
Boyne
USA,
Inc.,
7.25%,
05/01/25
(b)
.....
227
238,350
Burger
King
France
SAS,
6.00%,
05/01/24
.
EUR
500
572,550
Caesars
Entertainment,
Inc.
(b)
:
6.25%,
07/01/25
.................
USD
1,894
1,979,694
8.13%,
07/01/27
.................
1,078
1,142,680
Security
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
Caesars
Resort
Collection
LLC,
5.75%,
07/01/25
(b)
....................
USD
553
$
570,281
Carnival
Corp.:
11.50%,
04/01/23
(b)
...............
727
814,709
10.13%,
02/01/26
................
EUR
168
208,819
10.50%,
02/01/26
(b)
...............
USD
145
160,587
9.88%,
08/01/27
(b)
................
157
166,356
Cedar
Fair
LP,
5.50%,
05/01/25
(b)
.......
637
656,110
Churchill
Downs,
Inc.
(b)
:
5.50%,
04/01/27
.................
1,107
1,155,487
4.75%,
01/15/28
.................
579
581,895
Cirsa
Finance
International
SARL,
4.75%,
05/22/25
.....................
EUR
329
332,890
Codere
Finance
2
Luxembourg
SA:
6.75%,
11/01/21
(f)(l)
...............
300
191,696
12.75%,
09/30/23
................
76
89,091
CPUK
Finance
Ltd.:
4.25%,
08/28/22
.................
GBP
52
66,216
4.88%,
08/28/25
.................
300
361,060
Fortune
Star
BVI
Ltd.:
5.95%,
01/29/23
.................
USD
200
202,687
6.75%,
07/02/23
.................
256
264,000
6.85%,
07/02/24
.................
1,885
1,941,550
Gamma
Bidco
SpA,
6.25%,
07/15/25
.....
EUR
745
864,741
Golden
Nugget,
Inc.,
6.75%,
10/15/24
(b)
...
USD
1,212
1,012,020
Greene
King
Finance
plc,
Series
B2,
(LIBOR
GBP
3
Month
+
2.08%),
2.14%,
03/15/36
(a)
GBP
100
92,905
Hilton
Domestic
Operating
Co.,
Inc.:
4.25%,
09/01/24
.................
USD
93
92,535
5.38%,
05/01/25
(b)
................
180
187,974
5.13%,
05/01/26
.................
337
346,864
5.75%,
05/01/28
(b)
................
203
213,911
4.88%,
01/15/30
.................
2,063
2,124,890
International
Game
Technology
plc:
3.50%,
07/15/24
.................
EUR
500
577,431
3.50%,
06/15/26
.................
500
555,425
5.25%,
01/15/29
(b)
................
USD
200
202,250
IRB
Holding
Corp.,
7.00%,
06/15/25
(b)
....
210
223,912
KFC
Holding
Co.,
5.25%,
06/01/26
(b)
.....
48
49,872
Las
Vegas
Sands
Corp.:
2.90%,
06/25/25
.................
52
51,934
3.50%,
08/18/26
.................
46
46,615
3.90%,
08/08/29
.................
43
42,992
Marriott
International,
Inc.,
Series
EE,
5.75%,
05/01/25
.....................
925
1,032,319
Marriott
Ownership
Resorts,
Inc.,
6.50%,
09/15/26
.....................
14
14,374
McDonald's
Corp.:
4.45%,
09/01/48
.................
300
373,567
4.20%,
04/01/50
.................
375
456,411
Melco
Resorts
Finance
Ltd.:
5.25%,
04/26/26
.................
256
258,560
5.38%,
12/04/29
.................
545
542,020
MGM
China
Holdings
Ltd.:
5.25%,
06/18/25
.................
760
773,538
5.88%,
05/15/26
.................
486
503,010
MGM
Resorts
International:
7.75%,
03/15/22
.................
1,139
1,200,563
6.00%,
03/15/23
.................
229
237,566
5.75%,
06/15/25
.................
23
24,122
NCL
Corp.
Ltd.,
10.25%,
02/01/26
(b)
......
140
145,862
Powdr
Corp.,
6.00%,
08/01/25
(b)
........
213
217,792
Royal
Caribbean
Cruises
Ltd.
(b)
:
10.88%,
06/01/23
................
125
139,842
9.13%,
06/15/23
.................
196
207,760
11.50%,
06/01/25
................
260
301,614
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
36
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
Scientific
Games
International,
Inc.
(b)
:
8.63%,
07/01/25
.................
USD
235
$
245,217
5.00%,
10/15/25
.................
1,642
1,650,210
8.25%,
03/15/26
.................
605
631,674
7.00%,
05/15/28
.................
138
138,338
7.25%,
11/15/29
.................
50
50,750
SeaWorld
Parks
&
Entertainment,
Inc.,
9.50%,
08/01/25
(b)
....................
186
193,247
Sisal
Group
SpA,
7.00%,
07/31/23
......
EUR
344
406,979
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(b)
USD
1,334
1,419,042
Station
Casinos
LLC,
4.50%,
02/15/28
(b)
...
286
263,120
Stonegate
Pub
Co.
Financing
plc:
8.00%,
07/13/25
.................
GBP
272
322,897
8.25%,
07/31/25
.................
400
477,401
Studio
City
Finance
Ltd.,
7.25%,
02/11/24
..
USD
746
769,163
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(b)
.....
154
163,433
Viking
Cruises
Ltd.,
5.88%,
09/15/27
(b)
....
250
194,375
Wagamama
Finance
plc,
4.13%,
07/01/22
..
GBP
200
238,684
Wyndham
Destinations,
Inc.,
6.63%,
07/31/26
(b)
USD
197
206,379
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(b)
....................
218
211,460
Wynn
Las
Vegas
LLC,
5.25%,
05/15/27
(b)
..
183
170,190
Wynn
Macau
Ltd.:
5.50%,
01/15/26
.................
2,630
2,597,125
5.50%,
10/01/27
.................
200
195,500
Wynn
Resorts
Finance
LLC
(b)
:
7.75%,
04/15/25
.................
328
347,380
5.13%,
10/01/29
.................
453
431,482
Yum!
Brands,
Inc.:
7.75%,
04/01/25
(b)
................
736
816,261
4.75%,
01/15/30
(b)
................
89
96,120
3.63%,
03/15/31
.................
166
166,000
5.35%,
11/01/43
.................
127
133,985
41,356,329
Household
Durables
—
0.3%
Ashton
Woods
USA
LLC,
6.63%,
01/15/28
(b)
54
54,270
Brookfield
Residential
Properties,
Inc.
(b)
:
6.25%,
09/15/27
.................
120
121,011
4.88%,
02/15/30
.................
756
707,624
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(b)
269
283,795
Installed
Building
Products,
Inc.,
5.75%,
02/01/28
(b)
....................
101
106,302
K.
Hovnanian
Enterprises,
Inc.,
7.75%,
02/15/26
(b)
....................
340
343,400
Lennar
Corp.:
6.25%,
12/15/21
.................
360
370,350
4.88%,
12/15/23
.................
82
88,252
4.75%,
05/30/25
.................
191
208,454
5.25%,
06/01/26
.................
56
62,860
4.75%,
11/29/27
.................
354
404,180
Mattamy
Group
Corp.
(b)
:
5.25%,
12/15/27
.................
118
121,245
4.63%,
03/01/30
.................
498
504,275
MDC
Holdings,
Inc.,
6.00%,
01/15/43
.....
32
38,720
Meritage
Homes
Corp.,
5.13%,
06/06/27
...
60
66,450
Newell
Brands,
Inc.,
4.88%,
06/01/25
.....
167
180,151
Picasso
Finance
Sub,
Inc.,
6.13%,
06/15/25
(b)
580
624,741
PulteGroup,
Inc.:
7.88%,
06/15/32
.................
15
20,625
6.38%,
05/15/33
.................
352
442,640
Taylor
Morrison
Communities,
Inc.
(b)
:
5.88%,
06/15/27
.................
49
53,900
5.13%,
08/01/30
.................
174
185,310
Tempur
Sealy
International,
Inc.,
5.50%,
06/15/26
.....................
8
8,304
Security
Par
(000)
Value
Household
Durables
(continued)
TRI
Pointe
Group,
Inc.:
5.25%,
06/01/27
.................
USD
2
$
2,135
5.70%,
06/15/28
.................
65
71,175
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
(b)
....................
283
284,143
5,354,312
Household
Products
—
0.0%
(b)
Energizer
Holdings,
Inc.:
6.38%,
07/15/26
.................
90
96,768
7.75%,
01/15/27
.................
96
104,880
4.75%,
06/15/28
.................
227
234,922
4.38%,
03/31/29
.................
23
23,230
Spectrum
Brands,
Inc.:
5.00%,
10/01/29
.................
87
90,263
5.50%,
07/15/30
.................
182
192,010
742,073
Independent
Power
and
Renewable
Electricity
Producers
—
0.4%
Calpine
Corp.
(b)
:
5.25%,
06/01/26
.................
346
359,453
4.50%,
02/15/28
.................
275
281,639
5.13%,
03/15/28
.................
2,205
2,282,175
4.63%,
02/01/29
.................
1,002
1,000,121
5.00%,
02/01/31
.................
648
660,506
Clearway
Energy
Operating
LLC,
4.75%,
03/15/28
(b)
....................
370
382,025
Colbun
SA,
3.15%,
03/06/30
..........
1,853
1,995,449
6,961,368
Industrial
Conglomerates
—
0.1%
General
Electric
Co.,
3.63%,
05/01/30
....
1,565
1,620,735
Insurance
—
1.8%
Achmea
BV,
(EURIBOR
Swap
Rate
5
Year
+
4.78%),
4.62%
(a)(i)
...............
EUR
2,850
3,315,218
Acrisure
LLC,
8.13%,
02/15/24
(b)
........
USD
84
87,990
Alliant
Holdings
Intermediate
LLC,
6.75%,
10/15/27
(b)
....................
2,017
2,116,075
AmWINS
Group,
Inc.,
7.75%,
07/01/26
(b)
...
161
172,270
Ardonagh
Midco
2
plc,
11.50%,
01/15/27
(b)
.
200
202,000
Asahi
Mutual
Life
Insurance
Co.,
(USD
Swap
Semi
5
Year
+
4.59%),
6.50%
(a)(i)
......
1,056
1,132,560
Assicurazioni
Generali
SpA
(a)
:
(EURIBOR
3
Month
+
4.50%),
4.60%
(i)
..
EUR
300
375,038
(EURIBOR
3
Month
+
5.35%),
5.50%,
10/27/47
....................
450
619,273
BNP
Paribas
Cardif
SA,
(EURIBOR
3
Month
+
3.93%),
4.03%
(a)(i)
...............
200
257,320
CNP
Assurances:
1.88%,
10/20/22
.................
100
120,530
(EURIBOR
3
Month
+
4.60%),
4.50%,
06/10/47
(a)
...................
100
136,639
ELM
BV
for
Swiss
Re
Ltd.,
3.25%,
06/13/24
(g)
USD
200
208,128
FWD
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.08%),
5.50%
(a)(i)
....................
1,200
1,116,334
Galaxy
Bidco
Ltd.,
6.50%,
07/31/26
......
GBP
555
729,393
GTCR
AP
Finance,
Inc.,
8.00%,
05/15/27
(b)
.
USD
525
553,875
Heungkuk
Life
Insurance
Co.
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.47%),
4.48%
(a)(i)
....
2,000
2,000,000
HUB
International
Ltd.,
7.00%,
05/01/26
(b)
..
1,957
2,027,941
KDB
Life
Insurance
Co.
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.66%),
7.50%
(a)(i)
...........
1,800
1,723,500
Legal
&
General
Group
plc,
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
5.38%),
5.62%
(a)(i)
...............
GBP
2,450
3,233,753
BlackRock
Income
Fund
Schedules
of
Investments
37
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Insurance
(continued)
Marsh
&
McLennan
Cos.,
Inc.,
2.25%,
11/15/30
USD
2,545
$
2,663,143
NFP
Corp.
(b)
:
7.00%,
05/15/25
.................
100
106,000
6.88%,
08/15/28
.................
723
731,947
QBE
Insurance
Group
Ltd.,
(USD
Swap
Rate
10
Year
+
4.40%),
5.87%,
06/17/46
(a)
...
1,200
1,311,065
Societa
Cattolica
di
Assicurazioni
SC,
(EURIBOR
3
Month
+
4.46%),
4.25%,
12/14/47
(a)
....................
EUR
100
117,578
Tongyang
Life
Insurance
Co.
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.98%),
5.25%
(a)(i)
...........
USD
800
794,000
Union
Life
Insurance
Co.
Ltd.,
3.00%,
09/19/21
1,200
1,118,625
Unipol
Gruppo
SpA,
3.25%,
09/23/30
.....
EUR
600
710,773
Willis
North
America,
Inc.,
2.95%,
09/15/29
.
USD
20
21,552
ZhongAn
Online
P&C
Insurance
Co.
Ltd.,
3.50%,
03/08/26
................
1,000
1,001,388
28,703,908
Interactive
Media
&
Services
—
0.1%
Baidu,
Inc.,
4.13%,
06/30/25
..........
600
666,375
Rackspace
Technology
Global,
Inc.,
8.63%,
11/15/24
(b)
....................
326
341,387
1,007,762
Internet
&
Direct
Marketing
Retail
—
0.4%
ANGI
Group
LLC,
3.88%,
08/15/28
(b)
.....
306
302,940
Baozun,
Inc.,
1.63%,
05/01/24
(g)
........
413
380,112
Expedia
Group,
Inc.
(b)
:
6.25%,
05/01/25
.................
4,357
4,805,374
4.63%,
08/01/27
.................
270
283,710
Go
Daddy
Operating
Co.
LLC,
5.25%,
12/01/27
(b)
....................
120
124,868
Match
Group
Holdings
II
LLC
(b)
:
4.63%,
06/01/28
.................
404
416,120
4.13%,
08/01/30
.................
426
430,925
Very
Group
Funding
plc
(The),
7.75%,
11/15/22
GBP
100
123,228
6,867,277
IT
Services
—
1.0%
21Vianet
Group,
Inc.,
7.88%,
10/15/21
....
USD
2,065
2,108,881
Banff
Merger
Sub,
Inc.:
8.38%,
09/01/26
.................
EUR
310
368,912
9.75%,
09/01/26
(b)
................
USD
2,152
2,274,879
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(b)
452
456,802
Booz
Allen
Hamilton,
Inc.,
3.88%,
09/01/28
(b)
489
501,983
Cablevision
Lightpath
LLC
(b)
:
3.88%,
09/15/27
.................
207
207,000
5.63%,
09/15/28
.................
200
202,940
Fidelity
National
Information
Services,
Inc.,
3.75%,
05/21/29
................
235
276,555
Fiserv,
Inc.,
3.50%,
07/01/29
..........
495
564,258
Gartner,
Inc.
(b)
:
4.50%,
07/01/28
.................
395
415,244
3.75%,
10/01/30
.................
532
538,144
Global
Payments,
Inc.,
2.90%,
05/15/30
...
3,260
3,488,233
International
Business
Machines
Corp.,
2.95%,
05/15/50
.....................
745
769,756
KBR,
Inc.,
4.75%,
09/30/28
(b)
..........
229
230,431
Northwest
Fiber
LLC,
10.75%,
06/01/28
(b)
..
109
118,810
Presidio
Holdings,
Inc.,
4.88%,
02/01/27
(b)
..
568
573,680
Science
Applications
International
Corp.,
4.88%,
04/01/28
(b)
...............
230
233,517
Tempo
Acquisition
LLC
(b)
:
5.75%,
06/01/25
.................
196
205,310
6.75%,
06/01/25
.................
1,193
1,217,588
United
Group
BV:
4.88%,
07/01/24
.................
EUR
400
473,670
Security
Par
(000)
Value
IT
Services
(continued)
(EURIBOR
3
Month
+
3.25%),
3.25%,
02/15/26
(a)
...................
EUR
200
$
221,072
3.63%,
02/15/28
.................
111
122,125
WEX,
Inc.,
4.75%,
02/01/23
(b)
.........
USD
122
122,153
15,691,943
Leisure
Products
—
0.1%
Mattel,
Inc.:
6.75%,
12/31/25
(b)
................
1,297
1,368,335
6.20%,
10/01/40
.................
20
19,379
5.45%,
11/01/41
.................
102
95,382
1,483,096
Life
Sciences
Tools
&
Services
—
0.1%
(b)
Avantor,
Inc.,
6.00%,
10/01/24
.........
1,196
1,249,820
Charles
River
Laboratories
International,
Inc.:
5.50%,
04/01/26
.................
125
131,563
4.25%,
05/01/28
.................
76
79,761
1,461,144
Machinery
—
0.5%
Amsted
Industries,
Inc.,
5.63%,
07/01/27
(b)
.
108
114,893
Clark
Equipment
Co.,
5.88%,
06/01/25
(b)
...
305
316,056
CNH
Industrial
Finance
Europe
SA,
1.75%,
09/12/25
.....................
EUR
100
121,525
Colfax
Corp.,
6.38%,
02/15/26
(b)
........
USD
334
354,040
EnPro
Industries,
Inc.,
5.75%,
10/15/26
...
781
823,955
Grinding
Media,
Inc.,
7.38%,
12/15/23
(b)
...
435
440,437
Husky
III
Holding
Ltd.,
0.00%,
(0.00%
Cash
or
13.75%
PIK),
02/15/25
(b)(k)
..........
210
213,580
Mueller
Water
Products,
Inc.,
5.50%,
06/15/26
(b)
124
128,030
Navistar
International
Corp.
(b)
:
9.50%,
05/01/25
.................
73
82,254
6.63%,
11/01/25
.................
548
560,330
Novafives
SAS,
5.00%,
06/15/25
.......
EUR
100
84,651
Platin
1426
GmbH,
5.38%,
06/15/23
.....
300
330,631
RBS
Global,
Inc.,
4.88%,
12/15/25
(b)
.....
USD
10
10,138
Stevens
Holding
Co.,
Inc.,
6.13%,
10/01/26
(b)
80
85,600
Terex
Corp.,
5.63%,
02/01/25
(b)
........
205
205,513
Titan
Acquisition
Ltd.,
7.75%,
04/15/26
(b)
...
1,476
1,468,620
Vertical
Holdco
GmbH,
7.63%,
07/15/28
(b)
..
200
211,375
Vertical
Midco
GmbH,
4.38%,
07/15/27
...
EUR
288
342,899
Vertical
US
Newco,
Inc.,
5.25%,
07/15/27
(b)
.
USD
1,121
1,165,016
Wabash
National
Corp.,
5.50%,
10/01/25
(b)
.
335
335,000
7,394,543
Marine
—
0.0%
CMA
CGM
SA,
6.50%,
07/15/22
........
EUR
200
231,798
Media
—
3.2%
Altice
Financing
SA:
2.25%,
01/15/25
.................
280
314,137
7.50%,
05/15/26
(b)
................
USD
3,807
4,029,824
3.00%,
01/15/28
.................
EUR
147
159,738
5.00%,
01/15/28
(b)
................
USD
292
283,605
Altice
Finco
SA,
4.75%,
01/15/28
.......
EUR
300
318,320
AMC
Networks,
Inc.:
5.00%,
04/01/24
.................
USD
24
24,540
4.75%,
08/01/25
.................
317
327,681
Block
Communications,
Inc.,
4.88%,
03/01/28
(b)
254
259,080
Charter
Communications
Operating
LLC,
5.13%,
07/01/49
................
1,000
1,159,453
Clear
Channel
International
BV,
6.63%,
08/01/25
(b)
....................
445
455,146
Clear
Channel
Worldwide
Holdings,
Inc.:
9.25%,
02/15/24
.................
587
569,038
5.13%,
08/15/27
(b)
................
2,678
2,571,549
Comcast
Corp.:
0.25%,
05/20/27
.................
EUR
100
117,402
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
38
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Media
(continued)
1.50%,
02/20/29
.................
GBP
175
$
230,579
1.95%,
01/15/31
.................
USD
3,545
3,643,692
3.75%,
04/01/40
.................
910
1,064,227
4.70%,
10/15/48
.................
2,130
2,840,569
4.05%,
11/01/52
.................
500
614,058
CSC
Holdings
LLC:
6.75%,
11/15/21
.................
92
96,485
5.25%,
06/01/24
.................
167
179,107
5.50%,
05/15/26
(b)
................
384
399,360
5.38%,
02/01/28
(b)
................
629
664,381
5.75%,
01/15/30
(b)
................
1,392
1,479,000
4.13%,
12/01/30
(b)
................
691
704,302
4.63%,
12/01/30
(b)
................
2,277
2,294,078
3.38%,
02/15/31
(b)
................
344
333,078
Diamond
Sports
Group
LLC,
5.38%,
08/15/26
(b)
122
86,315
Discovery
Communications
LLC,
3.95%,
03/20/28
.....................
250
284,400
DISH
DBS
Corp.:
6.75%,
06/01/21
.................
475
486,875
5.88%,
07/15/22
.................
1,911
1,987,440
5.00%,
03/15/23
.................
662
675,240
7.75%,
07/01/26
.................
830
912,469
DISH
Network
Corp.
(g)
:
2.38%,
03/15/24
.................
322
289,784
3.38%,
08/15/26
.................
443
406,672
Entercom
Media
Corp.,
6.50%,
05/01/27
(b)
..
303
263,610
GCI
LLC
(b)
:
6.63%,
06/15/24
.................
168
180,197
4.75%,
10/15/28
.................
108
109,351
Grupo
Televisa
SAB:
4.63%,
01/30/26
.................
562
631,609
5.00%,
05/13/45
.................
1,133
1,279,792
Informa
plc,
2.13%,
10/06/25
..........
EUR
650
760,317
Interpublic
Group
of
Cos.,
Inc.
(The),
4.65%,
10/01/28
.....................
USD
150
177,793
Lamar
Media
Corp.,
4.00%,
02/15/30
(b)
....
251
251,000
LCPR
Senior
Secured
Financing
DAC,
6.75%,
10/15/27
(b)
....................
808
844,360
Liberty
Broadband
Corp.,
2.75%,
09/30/50
(b)(g)
785
844,447
Meredith
Corp.,
6.88%,
02/01/26
.......
100
83,500
Midcontinent
Communications,
5.38%,
08/15/27
(b)
....................
122
125,355
Outfront
Media
Capital
LLC,
5.00%,
08/15/27
(b)
328
319,800
Radiate
Holdco
LLC
(b)
:
4.50%,
09/15/26
.................
766
765,839
6.50%,
09/15/28
.................
1,376
1,410,073
SES
SA:
(EUR
Swap
Annual
5
Year
+
5.40%),
5.62%
(a)(i)
....................
EUR
300
371,509
1.63%,
03/22/26
.................
100
121,401
Sirius
XM
Radio,
Inc.
(b)
:
5.00%,
08/01/27
.................
USD
1,025
1,068,562
5.50%,
07/01/29
.................
609
653,153
4.13%,
07/01/30
.................
479
487,981
Summer
BC
Holdco
A
SARL,
9.25%,
10/31/27
EUR
180
195,441
Summer
BC
Holdco
B
SARL,
5.75%,
10/31/26
1,300
1,494,006
Summer
BidCo
BV
(k)
:
9.00%,
(9.00%
Cash
or
9.75%
PIK),
11/15/25
....................
182
206,710
9.00%,
(9.00%
Cash
or
9.75%
PIK),
11/15/25
(h)
...................
103
116,314
Tele
Columbus
AG,
3.88%,
05/02/25
.....
500
558,079
Telenet
Finance
Luxembourg
Notes
SARL,
5.50%,
03/01/28
(b)
...............
USD
400
420,000
Terrier
Media
Buyer,
Inc.,
8.88%,
12/15/27
(b)
1,075
1,083,063
Security
Par
(000)
Value
Media
(continued)
Univision
Communications,
Inc.
(b)
:
5.13%,
02/15/25
.................
USD
307
$
290,882
6.63%,
06/01/27
.................
650
634,563
UPCB
Finance
VII
Ltd.,
3.63%,
06/15/29
...
EUR
200
234,490
Videotron
Ltd.,
5.13%,
04/15/27
(b)
.......
USD
478
502,856
Virgin
Media
Vendor
Financing
Notes
III
DAC,
4.88%,
07/15/28
................
GBP
300
389,970
Virgin
Media
Vendor
Financing
Notes
IV
DAC,
5.00%,
07/15/28
(b)
...............
USD
871
868,823
VZ
Vendor
Financing
BV,
2.50%,
01/31/24
.
EUR
512
588,289
WPP
Finance
SA,
2.38%,
05/19/27
......
200
255,352
Ziggo
Bond
Co.
BV
(b)
:
6.00%,
01/15/27
.................
USD
330
341,138
5.13%,
02/28/30
.................
600
607,380
Ziggo
BV:
4.25%,
01/15/27
.................
EUR
270
328,670
5.50%,
01/15/27
(b)
................
USD
606
634,785
4.88%,
01/15/30
(b)
................
200
207,000
50,969,084
Metals
&
Mining
—
1.6%
ABJA
Investment
Co.
Pte.
Ltd.,
5.95%,
07/31/24
.....................
257
263,423
Arconic
Corp.
(b)
:
6.00%,
05/15/25
.................
555
592,699
6.13%,
02/15/28
.................
407
417,938
BHP
Billiton
Finance
Ltd.,
(EUR
Swap
Annual
5
Year
+
4.80%),
5.63%,
10/22/79
(a)
.....
EUR
100
136,817
Big
River
Steel
LLC,
6.63%,
01/31/29
(b)
...
USD
974
984,860
Chinalco
Capital
Holdings
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.79%),
4.10%
(a)(i)
...........
525
531,234
Constellium
SE
(b)
:
5.75%,
05/15/24
.................
352
358,160
5.88%,
02/15/26
.................
2,114
2,169,049
5.63%,
06/15/28
.................
526
536,888
Freeport-McMoRan,
Inc.:
4.38%,
08/01/28
.................
572
591,422
4.63%,
08/01/30
.................
588
618,253
5.40%,
11/14/34
.................
71
78,544
5.45%,
03/15/43
.................
2,381
2,640,005
Glencore
Finance
Europe
Ltd.,
1.50%,
10/15/26
.....................
EUR
100
120,214
GUSAP
III
LP,
4.25%,
01/21/30
........
USD
1,234
1,282,897
Industrias
Penoles
SAB
de
CV,
4.75%,
08/06/50
(b)
....................
235
241,869
Joseph
T
Ryerson
&
Son,
Inc.,
8.50%,
08/01/28
(b)
....................
178
187,345
JSW
Steel
Ltd.,
5.95%,
04/18/24
.......
200
205,800
Kaiser
Aluminum
Corp.
(b)
:
6.50%,
05/01/25
.................
107
110,295
4.63%,
03/01/28
.................
238
221,935
New
Gold,
Inc.
(b)
:
6.38%,
05/15/25
.................
173
178,623
7.50%,
07/15/27
.................
428
455,820
Newmont
Corp.,
2.80%,
10/01/29
.......
220
236,931
Novelis
Corp.
(b)
:
5.88%,
09/30/26
.................
1,349
1,386,097
4.75%,
01/30/30
.................
1,476
1,449,757
thyssenkrupp
AG:
2.88%,
02/22/24
.................
EUR
1,699
1,867,991
2.50%,
02/25/25
.................
1
1,076
United
States
Steel
Corp.,
12.00%,
06/01/25
(b)
USD
585
622,727
Vale
Overseas
Ltd.:
6.25%,
08/10/26
.................
874
1,033,505
3.75%,
07/08/30
.................
660
677,985
BlackRock
Income
Fund
Schedules
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Metals
&
Mining
(continued)
Vedanta
Resources
Finance
II
plc:
8.00%,
04/23/23
.................
USD
2,321
$
1,822,710
9.25%,
04/23/26
.................
2,820
2,115,000
Vedanta
Resources
Ltd.,
6.13%,
08/09/24
..
1,002
701,400
24,839,269
Multiline
Retail
—
0.3%
Future
Retail
Ltd.,
5.60%,
01/22/25
......
2,850
2,407,563
Macy's,
Inc.,
8.38%,
06/15/25
(b)
........
759
784,753
Nordstrom,
Inc.,
8.75%,
05/15/25
(b)
......
780
854,766
4,047,082
Multi-Utilities
—
0.1%
Consumers
Energy
Co.,
3.10%,
08/15/50
..
160
174,631
NiSource,
Inc.,
3.60%,
05/01/30
........
1,500
1,709,208
1,883,839
Oil,
Gas
&
Consumable
Fuels
—
4.1%
Apache
Corp.:
4.88%,
11/15/27
.................
247
233,415
5.10%,
09/01/40
.................
284
254,358
5.25%,
02/01/42
.................
40
35,800
4.75%,
04/15/43
.................
379
337,073
4.25%,
01/15/44
.................
221
187,850
5.35%,
07/01/49
.................
86
75,895
Ascent
Resources
Utica
Holdings
LLC,
10.00%,
04/01/22
(b)
....................
362
356,570
Baytex
Energy
Corp.,
8.75%,
04/01/27
(b)
...
230
103,787
BP
Capital
Markets
plc
(a)(i)
:
(EUR
Swap
Annual
5
Year
+
3.88%),
3.25%
EUR
500
601,974
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
4.17%),
4.25%
...
GBP
375
506,866
Buckeye
Partners
LP:
4.13%,
03/01/25
(b)
................
USD
63
59,850
3.95%,
12/01/26
.................
45
41,931
4.50%,
03/01/28
(b)
................
233
224,554
5.85%,
11/15/43
.................
104
96,340
5.60%,
10/15/44
.................
136
120,627
Callon
Petroleum
Co.:
6.25%,
04/15/23
.................
228
72,960
6.13%,
10/01/24
.................
295
84,075
8.25%,
07/15/25
.................
177
47,790
6.38%,
07/01/26
.................
149
36,505
Cenovus
Energy,
Inc.:
3.00%,
08/15/22
.................
100
97,477
3.80%,
09/15/23
.................
57
55,061
5.38%,
07/15/25
.................
719
691,992
5.40%,
06/15/47
.................
42
35,484
Centennial
Resource
Production
LLC,
6.88%,
04/01/27
(b)
....................
199
81,092
Cheniere
Corpus
Christi
Holdings
LLC,
5.13%,
06/30/27
.....................
500
556,571
Cheniere
Energy
Partners
LP:
5.63%,
10/01/26
.................
194
201,760
4.50%,
10/01/29
.................
525
538,529
Cheniere
Energy,
Inc.,
4.63%,
10/15/28
(b)
..
1,755
1,801,069
CITGO
Petroleum
Corp.,
7.00%,
06/15/25
(b)
.
325
320,531
CNX
Resources
Corp.,
7.25%,
03/14/27
(b)
..
233
237,660
Comstock
Resources,
Inc.:
7.50%,
05/15/25
(b)
................
443
416,420
9.75%,
08/15/26
.................
611
626,737
Contemporary
Ruiding
Development
Ltd.,
2.63%,
09/17/30
................
1,135
1,131,243
Continental
Resources,
Inc.:
5.00%,
09/15/22
.................
433
429,787
4.50%,
04/15/23
.................
146
139,138
4.90%,
06/01/44
.................
305
229,717
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Crestwood
Midstream
Partners
LP:
6.25%,
04/01/23
(e)
................
USD
60
$
58,656
5.63%,
05/01/27
(b)
................
158
141,137
CrownRock
LP,
5.63%,
10/15/25
(b)
......
1,318
1,242,215
CVR
Energy,
Inc.
(b)
:
5.25%,
02/15/25
.................
185
160,950
5.75%,
02/15/28
.................
62
52,700
DCP
Midstream
Operating
LP:
5.38%,
07/15/25
.................
222
228,900
5.63%,
07/15/27
.................
232
237,336
5.13%,
05/15/29
.................
25
24,625
6.45%,
11/03/36
(b)
................
39
37,373
6.75%,
09/15/37
(b)
................
509
488,640
Diamondback
Energy,
Inc.:
4.75%,
05/31/25
.................
1,685
1,817,673
3.50%,
12/01/29
.................
371
359,657
Enbridge,
Inc.:
4.00%,
10/01/23
.................
514
556,443
(LIBOR
USD
3
Month
+
3.64%),
6.25%,
03/01/78
(a)
...................
360
365,400
Endeavor
Energy
Resources
LP
(b)
:
6.63%,
07/15/25
.................
202
207,555
5.50%,
01/30/26
.................
710
704,675
5.75%,
01/30/28
.................
140
140,700
Energy
Transfer
Operating
LP:
3.75%,
05/15/30
.................
80
77,481
6.50%,
02/01/42
.................
205
214,731
5.15%,
02/01/43
.................
150
138,275
6.00%,
06/15/48
.................
140
140,810
5.00%,
05/15/50
.................
1,261
1,167,569
Energy
Transfer
Partners
LP,
5.88%,
03/01/22
500
522,293
EnLink
Midstream
LLC,
5.38%,
06/01/29
..
44
35,640
EnLink
Midstream
Partners
LP:
4.40%,
04/01/24
.................
85
76,500
4.15%,
06/01/25
.................
4
3,444
4.85%,
07/15/26
.................
126
109,004
5.60%,
04/01/44
.................
105
67,462
5.05%,
04/01/45
.................
14
8,890
Enterprise
Products
Operating
LLC:
4.80%,
02/01/49
.................
320
369,035
3.95%,
01/31/60
.................
320
315,770
EOG
Resources,
Inc.,
4.38%,
04/15/30
...
1,985
2,338,895
EQM
Midstream
Partners
LP:
6.00%,
07/01/25
(b)
................
301
310,407
4.13%,
12/01/26
.................
64
60,991
6.50%,
07/01/27
(b)
................
412
436,728
EQT
Corp.:
3.90%,
10/01/27
.................
388
357,202
8.75%,
02/01/30
(e)
................
164
193,520
Extraction
Oil
&
Gas,
Inc.
(b)(f)(l)
:
7.38%,
05/15/24
.................
375
93,750
5.63%,
02/01/26
.................
317
79,250
Genesis
Energy
LP:
6.00%,
05/15/23
.................
177
160,627
5.63%,
06/15/24
.................
169
144,044
6.50%,
10/01/25
.................
12
10,380
7.75%,
02/01/28
.................
60
52,131
Great
Western
Petroleum
LLC,
9.00%,
09/30/21
(b)
....................
179
104,267
Greenko
Dutch
BV,
5.25%,
07/24/24
.....
200
203,438
Greenko
Mauritius
Ltd.,
6.25%,
02/21/23
..
200
204,500
Greenko
Solar
Mauritius
Ltd.:
5.55%,
01/29/25
.................
200
204,000
5.95%,
07/29/26
.................
4,200
4,347,000
Harvest
Midstream
I
LP,
7.50%,
09/01/28
(b)
.
344
342,280
Hess
Corp.,
5.80%,
04/01/47
..........
500
548,124
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
40
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Hess
Midstream
Operations
LP
(b)
:
5.63%,
02/15/26
.................
USD
100
$
101,873
5.13%,
06/15/28
.................
125
124,765
Holly
Energy
Partners
LP,
5.00%,
02/01/28
(b)
165
160,875
HPCL-Mittal
Energy
Ltd.,
5.45%,
10/22/26
..
256
258,000
Indigo
Natural
Resources
LLC,
6.88%,
02/15/26
(b)
....................
407
396,125
Ithaca
Energy
North
Sea
plc,
9.38%,
07/15/24
(b)
400
372,000
Kinder
Morgan,
Inc.,
5.55%,
06/01/45
....
250
296,774
Lukoil
Securities
BV,
3.88%,
05/06/30
(b)
...
600
633,000
Matador
Resources
Co.,
5.88%,
09/15/26
..
536
448,069
Medco
Oak
Tree
Pte.
Ltd.,
7.38%,
05/14/26
.
250
238,672
MEG
Energy
Corp.
(b)
:
7.00%,
03/31/24
.................
450
418,500
6.50%,
01/15/25
.................
411
403,158
7.13%,
02/01/27
.................
132
118,382
Mongolian
Mining
Corp.:
9.25%,
04/15/24
.................
1,470
1,092,394
MPLX
LP,
5.50%,
02/15/49
...........
375
421,172
Murphy
Oil
Corp.:
5.75%,
08/15/25
.................
135
117,771
6.37%,
12/01/42
(e)
................
16
12,560
Neerg
Energy
Ltd.,
6.00%,
02/13/22
.....
2,400
2,394,750
Neptune
Energy
Bondco
plc,
6.63%,
05/15/25
(b)
400
356,768
New
Fortress
Energy,
Inc.,
6.75%,
09/15/25
(b)
1,056
1,104,048
NGPL
PipeCo
LLC,
7.77%,
12/15/37
(b)
....
122
155,294
NuStar
Logistics
LP:
5.75%,
10/01/25
.................
168
173,510
6.00%,
06/01/26
.................
162
162,457
Occidental
Petroleum
Corp.:
2.70%,
08/15/22
.................
428
399,910
2.90%,
08/15/24
.................
265
224,834
3.20%,
08/15/26
.................
19
15,069
3.00%,
02/15/27
.................
6
4,705
4.30%,
08/15/39
.................
582
403,419
6.20%,
03/15/40
.................
874
724,196
4.50%,
07/15/44
.................
212
151,713
4.63%,
06/15/45
.................
606
437,835
6.60%,
03/15/46
.................
26
22,393
4.40%,
04/15/46
.................
502
356,526
4.10%,
02/15/47
.................
65
43,882
4.20%,
03/15/48
.................
328
225,500
4.40%,
08/15/49
.................
127
88,913
Oleoducto
Central
SA,
4.00%,
07/14/27
(b)
..
831
862,993
Parkland
Corp.,
5.88%,
07/15/27
(b)
......
147
154,534
Parsley
Energy
LLC
(b)
:
5.38%,
01/15/25
.................
579
577,552
5.25%,
08/15/25
.................
43
42,570
5.63%,
10/15/27
.................
28
27,860
4.13%,
02/15/28
.................
270
253,800
PBF
Holding
Co.
LLC,
9.25%,
05/15/25
(b)
..
826
846,667
PDC
Energy,
Inc.:
1.13%,
09/15/21
(g)
................
405
384,080
6.13%,
09/15/24
.................
51
48,578
6.25%,
12/01/25
.................
38
35,340
5.75%,
05/15/26
.................
356
330,564
Plains
All
American
Pipeline
LP,
3.55%,
12/15/29
.....................
86
83,117
QEP
Resources,
Inc.:
5.38%,
10/01/22
.................
213
174,660
5.25%,
05/01/23
.................
607
441,592
5.63%,
03/01/26
.................
162
91,935
Raizen
Fuels
Finance
SA,
5.30%,
01/20/27
(b)
1,200
1,311,000
Range
Resources
Corp.:
5.88%,
07/01/22
.................
17
16,490
5.00%,
08/15/22
.................
157
151,458
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
5.00%,
03/15/23
.................
USD
177
$
168,150
Rattler
Midstream
LP,
5.63%,
07/15/25
(b)
...
277
279,077
Reliance
Industries
Ltd.:
4.13%,
01/28/25
.................
750
822,422
3.67%,
11/30/27
.................
412
450,754
ReNew
Power
Pvt
Ltd.,
5.88%,
03/05/27
...
800
795,440
ReNew
Power
Synthetic:
6.67%,
03/12/24
(b)
................
200
206,250
6.67%,
03/12/24
.................
1,701
1,754,156
Repsol
International
Finance
BV:
(EUR
Swap
Annual
5
Year
+
4.00%),
3.75%
(a)(i)
....................
EUR
100
117,835
(EUR
Swap
Annual
5
Year
+
4.41%),
4.25%
(a)(i)
....................
100
119,297
2.63%,
04/15/30
.................
100
134,264
Sabine
Pass
Liquefaction
LLC,
4.50%,
05/15/30
(b)
....................
USD
411
462,972
Sinopec
Group
Overseas
Development
2018
Ltd.,
3.35%,
05/13/50
.............
675
731,109
SM
Energy
Co.:
6.13%,
11/15/22
.................
43
33,453
10.00%,
01/15/25
(b)
...............
705
669,750
Southwestern
Energy
Co.:
4.10%,
03/15/22
.................
240
237,000
6.45%,
01/23/25
(e)
................
132
127,875
7.50%,
04/01/26
.................
95
92,862
8.38%,
09/15/28
.................
160
157,218
Sunoco
Logistics
Partners
Operations
LP:
4.00%,
10/01/27
.................
125
127,737
5.30%,
04/01/44
.................
120
111,803
5.40%,
10/01/47
.................
139
131,239
Sunoco
LP:
4.88%,
01/15/23
.................
83
83,415
5.50%,
02/15/26
.................
16
15,980
6.00%,
04/15/27
.................
25
25,688
5.88%,
03/15/28
.................
36
36,810
Tallgrass
Energy
Partners
LP
(b)
:
5.50%,
09/15/24
.................
173
162,620
7.50%,
10/01/25
.................
170
170,688
Targa
Resources
Partners
LP:
4.25%,
11/15/23
.................
57
56,430
5.13%,
02/01/25
.................
98
97,755
5.38%,
02/01/27
.................
15
15,084
6.50%,
07/15/27
.................
36
37,530
5.00%,
01/15/28
.................
362
352,950
6.88%,
01/15/29
.................
807
863,248
5.50%,
03/01/30
(b)
................
282
282,296
4.88%,
02/01/31
(b)
................
351
339,917
TerraForm
Power
Operating
LLC
(b)
:
4.25%,
01/31/23
.................
375
384,330
5.00%,
01/31/28
.................
30
32,840
4.75%,
01/15/30
.................
115
121,613
Thaioil
Treasury
Center
Co.
Ltd.,
3.75%,
06/18/50
.....................
1,185
1,124,639
Transcontinental
Gas
Pipe
Line
Co.
LLC,
3.25%,
05/15/30
(b)
...............
690
745,801
UGI
International
LLC,
3.25%,
11/01/25
...
EUR
100
118,406
Viper
Energy
Partners
LP,
5.38%,
11/01/27
(b)
USD
203
199,955
Western
Midstream
Operating
LP:
4.00%,
07/01/22
.................
44
44,261
4.10%,
02/01/25
(e)
................
84
80,010
3.95%,
06/01/25
.................
182
171,043
4.65%,
07/01/26
.................
134
130,315
4.75%,
08/15/28
.................
68
65,381
5.05%,
02/01/30
(e)
................
155
150,856
5.45%,
04/01/44
.................
328
280,440
BlackRock
Income
Fund
Schedules
of
Investments
41
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
5.30%,
03/01/48
.................
USD
663
$
533,715
5.50%,
08/15/48
.................
67
55,275
6.25%,
02/01/50
(e)
................
331
306,589
WPX
Energy,
Inc.:
8.25%,
08/01/23
.................
106
119,780
5.75%,
06/01/26
.................
98
101,430
5.25%,
10/15/27
.................
75
76,125
5.88%,
06/15/28
.................
238
248,710
4.50%,
01/15/30
.................
585
575,134
66,163,885
Paper
&
Forest
Products
—
0.1%
Boise
Cascade
Co.,
4.88%,
07/01/30
(b)
....
162
174,150
Norbord,
Inc.,
6.25%,
04/15/23
(b)
........
98
104,860
Stora
Enso
OYJ,
2.13%,
06/16/23
.......
EUR
200
244,106
WEPA
Hygieneprodukte
GmbH,
(EURIBOR
3
Month
+
2.88%),
2.88%,
12/15/26
(a)
....
400
457,887
981,003
Personal
Products
—
0.1%
Coty,
Inc.:
4.00%,
04/15/23
.................
400
391,598
4.75%,
04/15/26
.................
500
453,985
6.50%,
04/15/26
(b)
................
USD
100
78,500
Edgewell
Personal
Care
Co.,
5.50%,
06/01/28
(b)
206
216,759
1,140,842
Pharmaceuticals
—
1.3%
Bausch
Health
Americas,
Inc.,
8.50%,
01/31/27
(b)
....................
175
192,281
Bausch
Health
Cos.,
Inc.:
4.50%,
05/15/23
.................
EUR
1,400
1,626,102
5.88%,
05/15/23
(b)
................
USD
7
6,965
6.13%,
04/15/25
(b)
................
655
670,556
5.50%,
11/01/25
(b)
................
69
70,811
9.00%,
12/15/25
(b)
................
1,304
1,418,491
5.75%,
08/15/27
(b)
................
216
229,230
7.00%,
01/15/28
(b)
................
1,324
1,403,440
5.00%,
01/30/28
(b)
................
15
14,569
6.25%,
02/15/29
(b)
................
626
643,879
7.25%,
05/30/29
(b)
................
504
543,060
5.25%,
01/30/30
(b)
................
433
426,505
Catalent
Pharma
Solutions,
Inc.:
4.88%,
01/15/26
(b)
................
156
159,120
5.00%,
07/15/27
(b)
................
70
72,800
2.38%,
03/01/28
.................
EUR
794
893,688
Cheplapharm
Arzneimittel
GmbH,
3.50%,
02/11/27
.....................
496
559,728
Diocle
Spa,
(EURIBOR
3
Month
+
3.88%),
3.87%,
06/30/26
(a)
...............
331
381,513
Elanco
Animal
Health,
Inc.,
5.90%,
08/28/28
(e)
USD
28
32,340
Endo
DAC
(b)
:
9.50%,
07/31/27
.................
167
174,515
6.00%,
06/30/28
.................
182
133,770
Luye
Pharma
Group
Ltd.,
1.50%,
07/09/24
(g)
1,500
1,470,183
Nidda
BondCo
GmbH:
5.00%,
09/30/25
.................
EUR
200
227,418
7.25%,
09/30/25
.................
300
357,011
Nidda
Healthcare
Holding
GmbH:
3.50%,
09/30/24
.................
902
1,025,734
Par
Pharmaceutical,
Inc.,
7.50%,
04/01/27
(b)
USD
2,011
2,106,885
Rossini
SARL,
6.75%,
10/30/25
........
EUR
362
445,860
Takeda
Pharmaceutical
Co.
Ltd.:
2.25%,
11/21/26
.................
125
162,737
5.00%,
11/26/28
.................
USD
1,000
1,242,891
2.05%,
03/31/30
.................
1,975
1,994,443
3.00%,
11/21/30
.................
EUR
175
245,880
Security
Par
(000)
Value
Pharmaceuticals
(continued)
Teva
Pharmaceutical
Finance
Netherlands
II
BV:
6.00%,
01/31/25
.................
EUR
500
$
600,331
1.88%,
03/31/27
.................
500
491,880
1.63%,
10/15/28
.................
100
92,440
20,117,056
Professional
Services
—
0.2%
(b)
ASGN,
Inc.,
4.63%,
05/15/28
..........
USD
108
108,445
Dun
&
Bradstreet
Corp.
(The):
6.88%,
08/15/26
.................
819
879,647
10.25%,
02/15/27
................
1,018
1,150,340
Jaguar
Holding
Co.
II/PPD
Development
LP:
4.63%,
06/15/25
.................
634
653,020
5.00%,
06/15/28
.................
1,094
1,141,862
3,933,314
Real
Estate
Management
&
Development
—
8.2%
ADLER
Real
Estate
AG,
3.00%,
04/27/26
..
EUR
900
1,034,101
ADO
Properties
SA,
3.25%,
08/05/25
.....
300
354,504
Agile
Group
Holdings
Ltd.:
6.70%,
03/07/22
.................
USD
256
262,080
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
9.22%),
6.87%
(a)(i)
....................
4,100
4,059,000
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
11.29%),
7.88%
(a)(i)
....................
200
202,500
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
11.08%),
7.75%
(a)(i)
....................
795
794,006
Alam
Synergy
Pte.
Ltd.,
11.50%,
04/22/21
..
184
134,895
APL
Realty
Holdings
Pte.
Ltd.,
5.95%,
06/02/24
2,400
1,642,500
Aroundtown
SA:
(EUR
Swap
Annual
5
Year
+
3.98%),
3.38%
(a)(i)
....................
EUR
700
816,612
1.88%,
01/19/26
.................
100
122,746
ATF
Netherlands
BV,
(EUR
Swap
Annual
5
Year
+
4.38%),
3.75%
(a)(i)
...........
100
118,094
Celulosa
Arauco
y
Constitucion
SA:
4.25%,
04/30/29
.................
USD
920
979,800
5.15%,
01/29/50
.................
962
1,015,211
Central
China
Real
Estate
Ltd.:
6.88%,
10/23/20
.................
850
850,000
6.88%,
02/10/21
.................
710
707,337
6.75%,
11/08/21
.................
745
748,122
6.88%,
08/08/22
.................
200
200,500
7.25%,
04/24/23
.................
1,800
1,804,500
7.65%,
08/27/23
.................
820
822,050
7.90%,
11/07/23
.................
1,200
1,206,000
CFLD
Cayman
Investment
Ltd.:
8.63%,
02/28/21
.................
200
200,000
6.90%,
01/13/23
.................
800
756,000
8.60%,
04/08/24
.................
200
185,188
China
Aoyuan
Group
Ltd.:
7.95%,
09/07/21
.................
416
423,800
8.50%,
01/23/22
.................
200
205,750
7.95%,
02/19/23
.................
2,257
2,335,995
6.35%,
02/08/24
.................
3,050
3,027,125
China
Evergrande
Group:
6.25%,
06/28/21
.................
200
187,813
9.50%,
04/11/22
.................
200
180,000
11.50%,
01/22/23
................
770
682,653
4.25%,
02/14/23
(g)
................
HKD
37,000
4,437,331
12.00%,
01/22/24
................
USD
1,270
1,113,631
China
Overseas
Finance
Cayman
VIII
Ltd.,
2.75%,
03/02/30
................
1,179
1,195,948
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
42
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Real
Estate
Management
&
Development
(continued)
China
Resources
Land
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
5.14%),
3.75%
(a)(i)
..............
USD
905
$
921,120
China
SCE
Group
Holdings
Ltd.:
5.88%,
03/10/22
.................
800
796,544
7.25%,
04/19/23
.................
1,400
1,421,438
7.38%,
04/09/24
.................
600
605,062
CIFI
Holdings
Group
Co.
Ltd.:
6.55%,
03/28/24
.................
808
832,240
6.45%,
11/07/24
.................
200
204,500
Citycon
OYJ,
(EUR
Swap
Annual
5
Year
+
4.71%),
4.50%
(a)(i)
...............
EUR
100
101,993
Consus
Real
Estate
AG,
9.63%,
05/15/24
..
700
872,469
Country
Garden
Holdings
Co.
Ltd.:
6.50%,
04/08/24
.................
USD
200
215,563
5.40%,
05/27/25
.................
505
542,717
6.15%,
09/17/25
.................
200
221,750
7.25%,
04/08/26
.................
1,135
1,263,397
5.13%,
01/14/27
.................
1,200
1,270,875
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
(b)
...............
381
395,535
DEMIRE
Deutsche
Mittelstand
Real
Estate
AG,
1.88%,
10/15/24
................
EUR
500
538,799
Easy
Tactic
Ltd.:
9.13%,
07/28/22
.................
USD
200
185,750
8.13%,
02/27/23
.................
600
528,000
Elect
Global
Investments
Ltd.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.89%),
4.10%
(a)(i)
...........
2,550
2,486,250
Esic
Sukuk
Ltd.,
3.94%,
07/30/24
.......
500
502,187
Fantasia
Holdings
Group
Co.
Ltd.:
8.38%,
03/08/21
.................
200
198,813
15.00%,
12/18/21
................
200
211,375
11.75%,
04/17/22
................
1,650
1,690,219
7.95%,
07/05/22
.................
750
721,641
12.25%,
10/18/22
................
755
775,762
11.88%,
06/01/23
................
935
944,642
9.25%,
07/28/23
.................
1,000
949,062
Five
Point
Operating
Co.
LP,
7.88%,
11/15/25
(b)
1,599
1,598,200
Global
Prime
Capital
Pte.
Ltd.,
5.50%,
10/18/23
200
195,750
Greenland
Global
Investment
Ltd.:
7.25%,
03/12/22
.................
200
201,500
5.60%,
11/13/22
.................
200
194,313
Greystar
Real
Estate
Partners
LLC,
5.75%,
12/01/25
(b)
....................
18
18,135
Heimstaden
Bostad
AB:
(EUR
Swap
Annual
5
Year
+
3.67%),
3.25%
(a)(i)
....................
EUR
150
175,867
1.13%,
01/21/26
.................
100
116,965
Hong
Seng
Ltd.,
9.88%,
08/27/22
.......
USD
800
800,000
Hopson
Development
Holdings
Ltd.,
7.50%,
06/27/22
.....................
200
199,500
Howard
Hughes
Corp.
(The)
(b)
:
5.38%,
03/15/25
.................
682
692,980
5.38%,
08/01/28
.................
399
398,797
JGC
Ventures
Pte.
Ltd.,
10.75%,
08/30/21
..
1,500
598,125
Jingrui
Holdings
Ltd.:
9.45%,
04/23/21
.................
200
196,063
10.88%,
10/04/21
................
1,800
1,743,187
Kaisa
Group
Holdings
Ltd.:
11.25%,
04/09/22
................
200
204,125
11.95%,
10/22/22
................
3,200
3,304,000
11.50%,
01/30/23
................
1,556
1,585,661
10.88%,
07/23/23
................
2,000
1,985,000
9.38%,
06/30/24
.................
1,800
1,689,750
11.25%,
04/16/25
................
780
763,230
Security
Par
(000)
Value
Real
Estate
Management
&
Development
(continued)
KWG
Group
Holdings
Ltd.:
7.88%,
08/09/21
.................
USD
200
$
204,687
7.88%,
09/01/23
.................
450
462,375
7.40%,
03/05/24
.................
200
205,563
Logan
Group
Co.
Ltd.:
6.50%,
07/16/23
.................
200
203,688
5.75%,
01/14/25
.................
200
200,625
Modern
Land
China
Co.
Ltd.:
12.85%,
10/25/21
................
1,329
1,362,225
11.80%,
02/26/22
................
1,800
1,827,000
New
Metro
Global
Ltd.:
6.50%,
04/23/21
.................
200
200,978
7.13%,
05/23/21
.................
700
707,175
7.50%,
12/16/21
.................
1,095
1,123,744
No
Va
Land
Investment
Group
Corp.,
5.50%,
04/27/23
(g)
....................
1,376
1,396,347
NWD
MTN
Ltd.,
4.13%,
07/18/29
.......
1,200
1,214,625
Peach
Property
Finance
GmbH,
3.50%,
02/15/23
.....................
EUR
100
116,403
Powerlong
Real
Estate
Holdings
Ltd.:
7.13%,
11/08/22
.................
USD
750
772,500
6.95%,
07/23/23
.................
1,300
1,326,000
6.25%,
08/10/24
.................
1,620
1,613,419
Realogy
Group
LLC,
7.63%,
06/15/25
(b)
...
149
156,077
Redco
Properties
Group
Ltd.:
11.50%,
12/08/20
................
1,120
1,128,050
8.50%,
08/19/21
.................
700
693,350
Redsun
Properties
Group
Ltd.:
9.95%,
04/11/22
.................
2,400
2,459,250
9.70%,
04/16/23
.................
550
560,656
RKPF
Overseas
2019
A
Ltd.,
6.70%,
09/30/24
200
205,938
RongXingDa
Development
BVI
Ltd.,
8.75%,
01/28/21
.....................
450
450,000
Ronshine
China
Holdings
Ltd.:
11.25%,
08/22/21
................
460
478,400
10.50%,
03/01/22
................
200
207,625
8.95%,
01/22/23
.................
2,460
2,513,813
8.10%,
06/09/23
.................
200
199,250
6.75%,
08/05/24
.................
495
469,012
Scenery
Journey
Ltd.:
11.00%,
11/06/20
................
200
199,125
11.50%,
10/24/22
................
2,695
2,438,975
13.00%,
11/06/22
................
700
647,063
13.75%,
11/06/23
................
750
686,096
Seazen
Group
Ltd.:
6.45%,
06/11/22
.................
960
967,200
6.00%,
08/12/24
.................
780
776,100
Shimao
Group
Holdings
Ltd.:
5.60%,
07/15/26
.................
3,550
3,879,484
4.60%,
07/13/30
.................
423
444,150
Shui
On
Development
Holding
Ltd.:
5.75%,
11/12/23
.................
200
199,500
6.15%,
08/24/24
.................
200
200,000
Sino-Ocean
Land
Treasure
IV
Ltd.,
4.75%,
08/05/29
.....................
1,060
1,071,925
Summit
Properties
Ltd.,
2.00%,
01/31/25
..
EUR
100
110,278
Sunac
China
Holdings
Ltd.:
7.25%,
06/14/22
.................
USD
200
199,875
7.95%,
10/11/23
.................
200
201,688
7.50%,
02/01/24
.................
200
200,700
6.65%,
08/03/24
.................
1,100
1,058,676
7.00%,
07/09/25
.................
1,480
1,428,125
Theta
Capital
Pte.
Ltd.,
6.75%,
10/31/26
...
200
157,875
Times
China
Holdings
Ltd.:
6.75%,
07/16/23
.................
322
328,943
6.75%,
07/08/25
.................
1,800
1,831,544
BlackRock
Income
Fund
Schedules
of
Investments
43
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Real
Estate
Management
&
Development
(continued)
6.20%,
03/22/26
.................
USD
950
$
934,563
Unique
Pub
Finance
Co.
plc
(The):
Series
A4,
5.66%,
06/30/27
.........
GBP
59
78,822
Series
N,
6.46%,
03/30/32
(e)
.........
300
366,042
Vanke
Real
Estate
Hong
Kong
Co.
Ltd.,
3.50%,
11/12/29
.....................
USD
1,166
1,221,749
Vonovia
Finance
BV,
1.50%,
01/14/28
....
EUR
200
251,739
Wanda
Group
Overseas
Ltd.,
7.50%,
07/24/22
USD
960
925,200
Wanda
Properties
Overseas
Ltd.,
6.88%,
07/23/23
.....................
4,115
4,069,992
Yango
Justice
International
Ltd.:
10.00%,
02/12/23
................
200
208,688
9.25%,
04/15/23
.................
535
549,211
8.25%,
11/25/23
.................
680
680,637
7.50%,
04/15/24
.................
835
830,825
Yanlord
Land
HK
Co.
Ltd.:
6.75%,
04/23/23
.................
200
206,813
6.80%,
02/27/24
.................
200
209,500
Yuzhou
Group
Holdings
Co.
Ltd.:
8.63%,
01/23/22
.................
200
207,500
8.50%,
02/04/23
.................
200
208,688
6.00%,
10/25/23
.................
1,565
1,551,306
8.50%,
02/26/24
.................
200
207,375
7.70%,
02/20/25
.................
1,550
1,557,750
8.30%,
05/27/25
.................
1,200
1,208,250
7.85%,
08/12/26
.................
900
877,500
Zhenro
Properties
Group
Ltd.:
9.80%,
08/20/21
.................
340
347,650
9.15%,
03/08/22
.................
890
920,037
8.70%,
08/03/22
.................
1,400
1,431,500
8.30%,
09/15/23
.................
1,185
1,199,442
7.88%,
04/14/24
.................
550
544,844
7.35%,
02/05/25
.................
1,840
1,757,200
Zhongliang
Holdings
Group
Co.
Ltd.,
8.75%,
06/27/21
.....................
900
895,500
131,799,063
Road
&
Rail
—
0.6%
CMB
International
Leasing
Management
Ltd.:
1.88%,
08/12/25
.................
1,085
1,071,247
2.75%,
08/12/30
.................
1,150
1,126,560
CSX
Corp.,
3.80%,
04/15/50
..........
560
666,493
Deutsche
Bahn
Finance
GmbH,
(EUR
Swap
Annual
5
Year
+
1.26%),
0.95%
(a)(i)
.....
EUR
200
231,163
Loxam
SAS:
4.25%,
04/15/24
.................
700
800,102
3.25%,
01/14/25
.................
300
332,242
3.75%,
07/15/26
.................
300
335,027
Penske
Truck
Leasing
Co.
LP,
2.70%,
11/01/24
(b)
....................
USD
330
350,120
Rubis
Terminal
Infra
SAS,
5.63%,
05/15/25
.
EUR
253
305,825
SF
Holding
Investment
Ltd.,
2.88%,
02/20/30
USD
1,161
1,210,342
Uber
Technologies,
Inc.
(b)
:
7.50%,
11/01/23
.................
561
584,394
7.50%,
05/15/25
.................
1,159
1,235,019
8.00%,
11/01/26
.................
214
228,079
7.50%,
09/15/27
.................
309
330,630
6.25%,
01/15/28
.................
247
253,718
Union
Pacific
Corp.,
3.75%,
02/05/70
.....
175
197,573
Yunda
Holding
Investment
Ltd.,
2.25%,
08/19/25
.....................
725
719,323
9,977,857
Semiconductors
&
Semiconductor
Equipment
—
1.1%
ams
AG,
6.00%,
07/31/25
............
EUR
704
870,637
Broadcom,
Inc.:
4.70%,
04/15/25
.................
USD
3,985
4,528,205
Security
Par
(000)
Value
Semiconductors
&
Semiconductor
Equipment
(continued)
5.00%,
04/15/30
.................
USD
1,025
$
1,209,087
4.30%,
11/15/32
.................
485
554,060
Entegris,
Inc.,
4.38%,
04/15/28
(b)
.......
232
238,380
Infineon
Technologies
AG,
(EUR
Swap
Annual
5
Year
+
3.39%),
2.88%
(a)(i)
..........
EUR
700
814,560
KLA
Corp.,
3.30%,
03/01/50
..........
USD
560
591,652
Lam
Research
Corp.,
3.75%,
03/15/26
....
320
367,114
Microchip
Technology,
Inc.:
1.63%,
02/15/25
(g)
................
69
153,706
4.25%,
09/01/25
(b)
................
1,331
1,380,991
NVIDIA
Corp.,
3.50%,
04/01/50
........
2,035
2,381,518
NXP
BV
(b)
:
5.35%,
03/01/26
.................
500
591,122
3.40%,
05/01/30
.................
1,210
1,324,598
ON
Semiconductor
Corp.:
1.00%,
12/01/20
(g)
................
220
262,900
3.88%,
09/01/28
(b)
................
385
390,419
Qorvo,
Inc.,
3.38%,
04/01/31
(b)
.........
495
503,044
QUALCOMM,
Inc.,
4.30%,
05/20/47
.....
195
250,478
Sensata
Technologies
UK
Financing
Co.
plc,
6.25%,
02/15/26
(b)
...............
400
419,000
16,831,471
Software
—
1.5%
ACI
Worldwide,
Inc.,
5.75%,
08/15/26
(b)
...
719
759,307
Ascend
Learning
LLC:
6.88%,
08/01/25
(b)
................
741
755,500
Boxer
Parent
Co.,
Inc.:
6.50%,
10/02/25
.................
EUR
973
1,176,296
7.13%,
10/02/25
(b)
................
USD
454
484,899
9.13%,
03/01/26
(b)
................
969
1,027,140
BY
Crown
Parent
LLC
(b)
:
7.38%,
10/15/24
.................
474
481,110
4.25%,
01/31/26
.................
655
666,872
Camelot
Finance
SA,
4.50%,
11/01/26
(b)
...
568
579,360
Castle
US
Holding
Corp.,
9.50%,
02/15/28
(b)
256
244,160
CDK
Global,
Inc.:
4.88%,
06/01/27
.................
286
301,015
5.25%,
05/15/29
(b)
................
486
517,590
Change
Healthcare
Holdings
LLC,
5.75%,
03/01/25
(b)
....................
2,389
2,423,163
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
......
130
134,062
Genesys
Telecommunications
Laboratories,
Inc.,
10.00%,
11/30/24
(b)
...........
1,249
1,322,691
Nuance
Communications,
Inc.,
5.63%,
12/15/26
.....................
647
682,585
Open
Text
Corp.,
3.88%,
02/15/28
(b)
.....
199
201,300
Open
Text
Holdings,
Inc.,
4.13%,
02/15/30
(b)
674
693,169
Oracle
Corp.,
4.00%,
11/15/47
.........
5,000
5,927,617
PTC,
Inc.
(b)
:
3.63%,
02/15/25
.................
85
86,275
4.00%,
02/15/28
.................
274
281,624
Solera
LLC,
10.50%,
03/01/24
(b)
........
2,418
2,526,810
Sophia
LP,
9.00%,
09/30/23
(b)
.........
135
135,081
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
1,898
2,017,043
TeamSystem
SpA,
(EURIBOR
3
Month
+
4.00%),
4.00%,
04/15/23
(a)
..........
EUR
300
348,667
Veritas
US,
Inc.
(b)
:
7.50%,
02/01/23
.................
USD
200
199,542
7.50%,
09/01/25
.................
704
726,000
24,698,878
Specialty
Retail
—
0.8%
Asbury
Automotive
Group,
Inc.
(b)
:
4.50%,
03/01/28
.................
121
121,756
4.75%,
03/01/30
.................
119
119,893
Douglas
GmbH,
6.25%,
07/15/22
.......
EUR
300
321,838
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
44
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Specialty
Retail
(continued)
Dufry
One
BV:
2.50%,
10/15/24
.................
EUR
300
$
303,667
2.00%,
02/15/27
.................
100
97,401
eG
Global
Finance
plc:
4.38%,
02/07/25
.................
289
320,202
6.75%,
02/07/25
(b)
................
USD
1,200
1,228,500
6.25%,
10/30/25
.................
EUR
868
1,013,107
8.50%,
10/30/25
(b)
................
USD
200
210,500
Gap,
Inc.
(The),
8.88%,
05/15/27
(b)
......
164
186,550
Group
1
Automotive,
Inc.,
4.00%,
08/15/28
(b)
189
185,692
Ken
Garff
Automotive
LLC,
4.88%,
09/15/28
(b)
158
155,432
L
Brands,
Inc.:
6.88%,
07/01/25
(b)
................
491
530,280
6.63%,
10/01/30
(b)
................
177
180,098
6.88%,
11/01/35
.................
187
184,252
6.75%,
07/01/36
.................
8
7,840
Matalan
Finance
plc,
6.75%,
01/31/23
....
GBP
100
85,163
Michaels
Stores,
Inc.,
4.75%,
10/01/27
(b)
...
USD
194
192,302
Murphy
Oil
USA,
Inc.,
4.75%,
09/15/29
....
152
161,880
Penske
Automotive
Group,
Inc.:
3.50%,
09/01/25
.................
284
282,843
5.50%,
05/15/26
.................
75
77,368
PetSmart,
Inc.
(b)
:
7.13%,
03/15/23
.................
339
341,966
5.88%,
06/01/25
.................
2,318
2,372,705
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
(b)
...............
406
413,105
SRS
Distribution,
Inc.,
8.25%,
07/01/26
(b)
..
1,730
1,846,775
Staples,
Inc.,
7.50%,
04/15/26
(b)
........
1,538
1,421,358
Tendam
Brands
SAU:
5.00%,
09/15/24
.................
EUR
100
96,119
(EURIBOR
3
Month
+
5.25%),
5.25%,
09/15/24
(a)
...................
100
95,100
12,553,692
Technology
Hardware,
Storage
&
Peripherals
—
0.2%
Dell
International
LLC,
5.85%,
07/15/25
(b)
..
USD
1,645
1,916,741
Diebold
Nixdorf,
Inc.,
9.38%,
07/15/25
(b)
...
146
154,030
Hurricane
Finance
plc,
8.00%,
10/15/25
...
GBP
230
309,275
NCR
Corp.
(b)
:
8.13%,
04/15/25
.................
USD
101
111,630
5.75%,
09/01/27
.................
51
53,320
5.00%,
10/01/28
.................
128
128,103
6.13%,
09/01/29
.................
259
274,260
5.25%,
10/01/30
.................
130
130,000
Nuoxi
Capital
Ltd.,
7.88%,
06/24/21
(f)(l)
....
600
144,000
Seagate
HDD
Cayman,
4.13%,
01/15/31
(b)
.
80
86,335
Xerox
Corp.,
4.80%,
03/01/35
.........
144
137,520
3,445,214
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
Delta
Merlin
Dunia
Tekstil
PT,
8.63%,
03/12/24
(f)
(l)
.........................
600
57,938
Hanesbrands,
Inc.,
5.38%,
05/15/25
(b)
....
123
129,765
Levi
Strauss
&
Co.,
5.00%,
05/01/25
.....
68
69,573
Prime
Bloom
Holdings
Ltd.,
6.95%,
07/05/22
955
179,659
William
Carter
Co.
(The)
(b)
:
5.50%,
05/15/25
.................
85
89,037
5.63%,
03/15/27
.................
141
147,169
Wolverine
World
Wide,
Inc.,
6.38%,
05/15/25
(b)
88
92,840
765,981
Thrifts
&
Mortgage
Finance
—
0.4%
Genworth
Mortgage
Holdings,
Inc.,
6.50%,
08/15/25
(b)
....................
466
486,830
Ladder
Capital
Finance
Holdings
LLLP,
4.25%,
02/01/27
(b)
....................
330
285,450
MGIC
Investment
Corp.,
5.25%,
08/15/28
..
228
235,165
Security
Par
(000)
Value
Thrifts
&
Mortgage
Finance
(continued)
Mongolian
Mortgage
Corp.
HFC
LLC,
9.75%,
01/29/22
.....................
USD
2,100
$
2,031,094
Nationstar
Mortgage
Holdings,
Inc.
(b)
:
6.00%,
01/15/27
.................
148
150,865
5.50%,
08/15/28
.................
296
295,630
Nationwide
Building
Society,
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
5.39%),
5.87%
(a)(i)
...............
GBP
2,200
2,912,567
6,397,601
Tobacco
—
0.1%
Altria
Group,
Inc.:
3.80%,
02/14/24
.................
USD
245
267,792
4.40%,
02/14/26
.................
120
138,620
5.95%,
02/14/49
.................
485
649,675
4.45%,
05/06/50
.................
805
895,792
BAT
Netherlands
Finance
BV,
3.13%,
04/07/28
EUR
100
134,168
Imperial
Brands
Finance
plc,
2.13%,
02/12/27
100
124,568
2,210,615
Trading
Companies
&
Distributors
—
0.4%
Air
Lease
Corp.,
3.88%,
07/03/23
.......
USD
125
130,260
BOC
Aviation
Ltd.,
2.63%,
09/17/30
......
1,450
1,429,801
Fortress
Transportation
and
Infrastructure
Investors
LLC,
9.75%,
08/01/27
(b)
.....
59
63,167
HD
Supply,
Inc.,
5.38%,
10/15/26
(b)
......
2,593
2,712,382
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
....
500
517,325
United
Rentals
North
America,
Inc.:
5.88%,
09/15/26
.................
73
76,923
3.88%,
11/15/27
.................
53
54,590
5.25%,
01/15/30
.................
11
12,004
4.00%,
07/15/30
.................
266
272,650
WESCO
Distribution,
Inc.
(b)
:
7.13%,
06/15/25
.................
889
968,388
7.25%,
06/15/28
.................
720
788,886
7,026,376
Transportation
Infrastructure
—
0.1%
Adani
Ports
&
Special
Economic
Zone
Ltd.,
3.95%,
01/19/22
................
729
745,257
Wireless
Telecommunication
Services
—
1.4%
Connect
Finco
SARL,
6.75%,
10/01/26
(b)
...
2,588
2,596,152
Digicel
International
Finance
Ltd.,
8.75%,
05/25/24
(b)
....................
200
199,999
Empresa
Nacional
de
Telecomunicaciones
SA,
4.75%,
08/01/26
................
1,116
1,228,303
Globe
Telecom,
Inc.:
2.50%,
07/23/30
.................
1,300
1,256,125
3.00%,
07/23/35
.................
750
713,438
Gogo
Intermediate
Holdings
LLC,
9.88%,
05/01/24
(b)
....................
1,018
1,088,242
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
.....................
301
320,011
Matterhorn
Telecom
SA:
2.63%,
09/15/24
.................
EUR
100
114,068
4.00%,
11/15/27
.................
650
750,661
PPF
Telecom
Group
BV,
3.25%,
09/29/27
..
700
816,694
SoftBank
Group
Corp.:
(USD
Swap
Rate
5
Year
+
4.23%),
6.00%
(a)
(i)
..........................
USD
1,400
1,288,000
4.75%,
09/19/24
.................
200
202,500
4.50%,
04/20/25
.................
EUR
200
245,816
4.75%,
07/30/25
.................
385
480,734
3.13%,
09/19/25
.................
300
348,530
5.00%,
04/15/28
.................
1,200
1,488,714
4.00%,
09/19/29
.................
200
234,406
Sprint
Corp.:
7.88%,
09/15/23
.................
USD
296
340,030
BlackRock
Income
Fund
Schedules
of
Investments
45
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Wireless
Telecommunication
Services
(continued)
7.13%,
06/15/24
.................
USD
196
$
225,520
7.63%,
02/15/25
.................
315
368,550
7.63%,
03/01/26
.................
783
946,165
Telefonica
Europe
BV
(a)(i)
:
(EUR
Swap
Annual
10
Year
+
4.30%),
5.87%
......................
EUR
1,200
1,546,939
(EUR
Swap
Annual
10
Year
+
4.30%),
5.87%
......................
200
257,823
(EUR
Swap
Annual
6
Year
+
4.11%),
4.37%
200
246,909
T-Mobile
USA,
Inc.:
4.50%,
02/01/26
.................
USD
75
77,280
4.75%,
02/01/28
.................
233
249,249
3.88%,
04/15/30
(b)
................
1,225
1,389,910
Vmed
O2
UK
Financing
I
plc,
3.25%,
01/31/31
EUR
599
697,908
Vodafone
Group
plc:
2.20%,
08/25/26
.................
100
130,488
4.38%,
05/30/28
.................
USD
350
414,295
2.50%,
05/24/39
.................
EUR
100
134,186
(EUR
Swap
Annual
5
Year
+
3.43%),
4.20%,
10/03/78
(a)
..............
368
471,877
(USD
Swap
Semi
5
Year
+
3.05%),
6.25%,
10/03/78
(a)
...................
USD
1,100
1,186,625
(EUR
Swap
Annual
5
Year
+
2.67%),
3.10%,
01/03/79
(a)
..............
EUR
200
238,300
VTR
Comunicaciones
SpA,
5.13%,
01/15/28
(b)
USD
237
244,251
22,538,698
Total
Corporate
Bonds
—
65.5%
(Cost:
$1,023,085,593)
...........................
1,048,313,687
Floating
Rate
Loan
Interests
—
11.4%
Aerospace
&
Defense
—
0.2%
(h)
Bleriot
US
Bidco,
Inc.,
Delayed
Draw
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
4.97%, 10/31/26
.................
29
28,415
Bleriot
US
Bidco,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
4.97%, 10/30/26
....
183
181,862
Dynasty
Acquisition
Co.,
Inc.,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
3.50%),
3.72%, 04/06/26
.................
926
814,338
Dynasty
Acquisition
Co.,
Inc.,
Term
Loan
B2,
(LIBOR
USD
3
Month
+
3.50%),
3.72%, 04/06/26
.................
498
437,737
Sequa
Mezzanine
Holdings
LLC,
1st
Lien
Term
Loan,
11/28/23
(m)
.................
295
279,479
TransDigm,
Inc.,
Term
Loan
F,
(LIBOR
USD
1
Month
+
2.25%),
2.40%, 12/09/25
.....
1,421
1,340,646
TransDigm,
Inc.,
Term
Loan
G,
08/22/24
(m)
..
116
109,624
3,192,101
Airlines
—
0.2%
(h)
American
Airlines,
Inc.,
Term
Loan
B:
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 04/28/23
...............
579
472,035
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 12/15/23
...............
1,076
875,667
JetBlue
Airways
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%, 06/17/24
.
250
247,704
Kestrel
Bidco,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 12/11/26
......
979
845,981
2,441,387
Security
Par
(000)
Value
Auto
Components
—
0.2%
(h)
Clarios
Global
LP,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 04/30/26
.
USD
1,970
$
1,916,812
Wand
Newco
3,
Inc.,
1st
Lien
Term
Loan
B1,
02/05/26
(m)
.....................
636
613,053
2,529,865
Automobiles
—
0.1%
Dealer
Tire
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 01/01/38
(h)
....
904
881,152
Building
Products
—
0.1%
(h)
CPG
International
LLC,
Term
Loan,
05/05/24
(m)
649
645,935
Wilsonart
LLC,
Term
Loan
D,
(LIBOR
USD
3
Month
+
3.25%),
4.25%, 12/19/23
.....
1,240
1,227,195
1,873,130
Capital
Markets
—
0.1%
(h)
Greenhill
&
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 04/12/24
(c)
...
160
156,831
Jefferies
Finance
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.44%, 06/03/26
(c)
339
324,829
Orion
Advisor
Solutions,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.00%, 09/24/27
.................
198
196,329
Travelport
Finance
(Luxembourg)
SARL,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
5.00%),
6.07%, 05/29/26
............
410
307,466
985,455
Chemicals
—
0.4%
(h)
Alpha
3
BV,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 01/31/24
.....
1,116
1,096,940
Ascend
Performance
Materials
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%, 08/27/26
.................
727
723,747
Chemours
Co.
(The),
Term
Loan
B2,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/03/25
.
204
196,198
Greenrock
Finance,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.50%),
4.50%, 06/28/24
.................
371
352,040
Illuminate
Buyer
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.31%, 06/30/27
....
745
737,755
Invictus
US
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.16%, 03/28/25
.
223
216,392
Invictus
US
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
6.75%),
6.91%, 03/30/26
.
75
69,797
IPS
Acquisition
LLC,
1st
Lien
Term
Loan
B2,
(LIBOR
USD
1
Month
+
3.25%),
4.25%, 11/07/24
(c)
................
345
337,880
Messer
Industries
GmbH,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
2.50%),
2.72%, 01/01/38
.................
603
589,174
Momentive
Performance
Materials,
Inc.,
1st
Lien
Term
Loan,
05/15/24
(m)
..........
419
399,937
Nouryon
Finance
BV,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 10/01/25
....
74
71,172
OXEA
Holding
Vier
GmbH,
Term
Loan
B2,
(LIBOR
USD
1
Month
+
3.50%),
3.69%, 10/14/24
.................
626
599,821
Road
Infrastructure
Investment
Holdings,
Inc,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
4.50%
-
5.75%, 06/13/23
......
603
546,892
5,937,745
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
46
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Commercial
Services
&
Supplies
—
0.5%
(h)
Advanced
Disposal
Services,
Inc.,
Term
Loan,
(LIBOR
USD
1
Week
+
2.25%),
3.00%, 11/10/23
.................
USD
707
$
705,380
Allied
Universal
Holdco
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 07/10/26
.................
512
505,881
Asplundh
Tree
Expert
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.50%),
2.65%, 09/07/27
.
538
536,994
Brand
Energy
&
Infrastructure
Services,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.25%),
5.25%, 06/21/24
.................
1,102
1,023,249
Capri
Acquisitions
Bidco
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.26%, 11/01/24
.................
1,103
1,100,886
Diamond
(BC)
BV,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.26%, 09/06/24
.....
777
724,317
EnergySolutions
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.75%, 05/09/25
....
214
204,064
GFL
Environmental,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 05/30/25
.
186
185,210
Harland
Clarke
Holdings
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.75%),
5.75%, 11/03/23
.................
197
160,630
Intrado
Corp.,
Term
Loan
B,
10/10/24
(m)
....
308
278,516
Intrado
Corp.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.50%),
4.50%, 10/10/24
.....
24
22,065
KAR
Auction
Services,
Inc.,
Term
Loan
B6,
(LIBOR
USD
1
Month
+
2.25%),
2.44%, 09/19/26
(c)
................
242
233,106
Prime
Security
Services
Borrower
LLC,
1st
Lien
Term
Loan
B1,
(LIBOR
USD
3
Month
+
3.25%),
4.25%, 09/23/26
............
448
443,808
Spring
Education
Group,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.25%),
4.47%, 07/30/25
.................
91
86,327
Tempo
Acquisition
LLC,
Term
Loan,
11/02/26
(m)
1,856
1,797,892
US
Ecology
Holdings,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.50%),
2.65%, 11/02/26
(c)
................
130
128,230
8,136,555
Construction
&
Engineering
—
0.1%
(h)
Pike
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 07/24/26
............
136
134,640
Ply
Gem
Midco,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 04/12/25
....
288
282,407
SRS
Distribution,
Inc.,
Term
Loan,
05/23/25
(m)
760
738,401
1,155,448
Construction
Materials
—
0.1%
(h)
American
Builders
&
Contractors
Supply
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 01/15/27
............
690
669,984
Core
&
Main
LP,
Term
Loan,
(LIBOR
USD
3
Month
+
2.75%),
3.75%, 08/01/24
.....
1,328
1,298,081
Forterra
Finance
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 10/25/23
....
388
384,027
2,352,092
Containers
&
Packaging
—
0.4%
(h)
Berry
Global,
Inc.,
Term
Loan
W,
(LIBOR
USD
1
Month
+
2.00%),
2.16%, 10/01/22
....
748
740,512
BWAY
Holding
Co.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
3.52%, 04/03/24
.....
987
924,274
Charter
NEX
US,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
3.75%, 05/16/24
.................
1,114
1,084,961
Security
Par
(000)
Value
Containers
&
Packaging
(continued)
Flex
Acquisition
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 12/29/23
.
USD
1,003
$
979,549
Graham
Packaging
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.50%, 08/04/27
.................
205
203,549
Pactiv
Evergreen
Inc.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
2.75%),
2.90%
-
5.00%, 02/05/23
.................
1,158
1,142,108
Pactiv
Evergreen
Inc.,
Term
Loan
B2,
02/05/26
(m)
.....................
515
505,215
Pregis
TopCo
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 07/31/26
.
86
85,061
Tosca
Services
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
5.25%, 08/18/27
.................
206
205,743
5,870,972
Diversified
Consumer
Services
—
0.4%
(h)
AlixPartners
LLP,
Term
Loan,
(LIBOR
USD
1
Month
+
2.50%),
2.66%, 04/04/24
.....
1,029
1,002,304
Amentum
Government
Services
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 01/29/27
............
232
228,448
APX
Group,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.16%
-
7.25%, 12/31/25
195
190,873
Bright
Horizons
Family
Solutions
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
1.75%),
2.50%, 11/07/23
.................
675
653,157
Mileage
Plus
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%, 06/21/27
.
1,194
1,212,579
Research
Now
Group,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
5.50%),
6.50%, 12/20/24
.................
452
426,791
Reynolds
Consumer
Products
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 02/04/27
.................
43
42,155
SIRVA
Worldwide,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
5.50%),
5.65%
-
5.76%, 08/04/25
.................
344
284,537
Sotheby's,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
5.50%),
6.50%, 01/15/27
.....
939
933,092
TierPoint
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 05/06/24
.
358
347,652
Trugreen
Ltd.
Partnership,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.91%, 03/19/26
.................
654
647,008
5,968,596
Diversified
Financial
Services
—
0.6%
(h)
Advisor
Group
Holdings,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
5.00%),
5.15%, 07/31/26
.................
279
269,084
Alchemy
Copyrights
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
4.00%, 08/05/27
(c)
215
214,462
Belron
Finance
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
2.77%, 10/30/26
....
494
487,054
BW
Gas
&
Convenience
Holdings
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
6.25%),
6.40%, 11/18/24
.................
212
212,333
Connect
Finco
SARL,
Term
Loan,
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 12/11/26
....
2,139
2,071,261
Deerfield
Dakota
Holding
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 04/09/27
.................
1,300
1,290,065
Genuine
Financial
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 07/11/25
.................
879
799,248
BlackRock
Income
Fund
Schedules
of
Investments
47
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Diversified
Financial
Services
(continued)
Lealand
Finance
Co.
BV,
Term
Loan,
06/28/24
(c)
(m)
...........................
USD
17
$
14,762
Lealand
Finance
Co.
BV,
Term
Loan,
(LIBOR
USD
1
Month
+
4.00%),
4.16%, 06/30/25
.
109
81,618
LEB
Holdings
(USA),
Inc.,
Term
Loan
B,
09/25/27
(m)
.....................
155
153,644
Milano
Acquisition
Corp.,
Term
Loan
B,
08/17/27
(m)
.....................
658
649,775
SMG
US
Midco
2,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
2.65%
-
2.76%, 01/23/25
.................
462
402,309
Travelport
Finance
(Luxembourg)
SARL,
Term
Loan,
02/28/25
(m)
.................
375
360,242
VICI
Properties
1
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
1.75%),
1.91%, 12/20/24
.
576
555,337
VS
Buyer
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 02/28/27
.....
938
920,193
Ziggo
Finance
Partnership,
Facility
Term
Loan
I,
04/30/28
(m)
....................
572
549,327
9,030,714
Diversified
Telecommunication
Services
—
0.6%
Altice
Financing
SA,
Term
Loan:
(h)
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 07/15/25
...............
410
390,656
(LIBOR
USD
1
Month
+
2.75%),
2.89%, 01/31/26
...............
650
612,578
Altice
France
SA,
Term
Loan
B13,
(LIBOR
USD
1
Month
+
4.00%),
4.15%, 08/14/26
(h)
...
1,126
1,091,488
Cablevision
Lightpath
LLC,
Term
Loan,
09/24/27
(h)(m)
....................
154
153,038
Consolidated
Communications,
Inc.,
Term
Loan
B,
09/15/27
(m)(n)
..................
328
324,208
GCI
Holdings,
Inc.,
Term
Loan
B,
09/24/25
(c)(h)(m)
323
320,578
Iridium
Satellite
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 11/04/26
(h)
...
640
638,366
Level
3
Financing,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 03/01/27
(h)
498
482,388
Ligado
Networks
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
0.00%),
0.00%, 12/07/20
(f)(h)(l)
.
78
70,320
MTN
Infrastructure
TopCo,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 11/15/24
(h)
................
940
922,787
Northwest
Fiber
LLC,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
5.50%),
5.66%, 04/30/27
(h)
................
231
230,861
Virgin
Media
Bristol
LLC,
Term
Loan
Q,
01/31/29
(h)(m)
....................
616
604,930
Zayo
Group
Holdings,
Inc.,
Term
Loan,
03/09/27
(h)(m)
....................
3,783
3,666,030
9,508,228
Electric
Utilities
—
0.0%
(h)
Calpine
Construction
Finance
Co.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 01/15/25
.................
224
217,112
Edgewater
Generation
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 12/13/25
.................
111
107,720
PG&E
Corp.,
Term
Loan,
06/18/25
(m)
......
375
366,932
691,764
Security
Par
(000)
Value
Electrical
Equipment
—
0.1%
(h)
Graftech
International
Ltd.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
4.50%, 02/12/25
.
USD
437
$
430,559
MH
Sub
I
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 09/13/24
.
1,211
1,176,530
1,607,089
Entertainment
—
0.2%
(h)
Creative
Artists
Agency
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 11/27/26
.................
289
277,436
Datto,
Inc.,
Term
Loan,
04/02/26
(m)
.......
373
372,434
Kingpin
Intermediate
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
4.50%, 07/03/24
.................
587
498,479
Live
Nation
Entertainment,
Inc.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
1.75%),
1.94%, 10/19/26
.................
791
735,398
Renaissance
Holding
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 05/30/25
.................
36
34,813
UFC
Holdings
LLC,
1st
Lien
Term
Loan
B1,
(LIBOR
USD
3
Month
+
3.25%),
4.25%, 04/29/26
.................
173
169,853
William
Morris
Endeavor
Entertainment
LLC,
1st
Lien
Term
Loan
B1,
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 05/18/25
.....
1,077
916,666
3,005,079
Equity
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
(h)
Cushman
&
Wakefield
US
Borrower
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 08/21/25
.................
671
645,751
RHP
Hotel
Properties
LP,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 05/11/24
.
130
122,969
768,720
Food
&
Staples
Retailing
—
0.1%
(h)
H-Food
Holdings
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.69%),
3.84%, 05/23/25
....
115
111,046
H-Food
Holdings
LLC,
Term
Loan
B2,
05/23/25
(m)
.....................
434
422,533
US
Foods,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 06/27/23
.....
962
923,703
US
Foods,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 09/13/26
.....
222
211,532
1,668,814
Food
Products
—
0.3%
(h)
1011778
BC
ULC,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 11/19/26
....
698
667,700
8th
Avenue
Food
&
Provisions,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 10/01/25
.................
354
349,800
B&G
Foods,
Inc.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
2.50%),
2.65%, 10/10/26
....
58
57,988
Chobani
LLC,
1st
Lien
Term
Loan,
10/10/23
(m)
1,781
1,758,462
Froneri
International
Ltd.,
Facility
1st
Lien
Term
Loan
B2,
(LIBOR
USD
1
Month
+
2.25%),
2.41%, 01/29/27
.................
1,539
1,476,248
Froneri
International
Ltd.,
Facility
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
5.75%),
5.90%, 01/31/28
(c)
................
168
166,566
Hostess
Brands
LLC,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
2.25%),
3.00%, 08/03/25
.................
328
321,604
JBS
USA
LUX
SA,
Term
Loan,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 05/01/26
.....
121
117,365
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
48
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Food
Products
(continued)
Nomad
Foods
Ltd.,
Facility
Term
Loan
B4,
(LIBOR
USD
1
Month
+
2.25%),
2.40%, 05/15/24
.................
USD
332
$
322,678
Pathway
Vet
Alliance
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
4.00%),
4.15%, 03/31/27
.................
134
132,235
Pathway
Vet
Alliance
LLC,
Delayed
Draw
1st
Lien
Term
Loan,
03/31/27
(m)
..........
11
10,801
Shearer's
Foods
LLC,
1st
Lien
Term
Loan,
09/23/27
(m)
.....................
170
168,620
5,550,067
Health
Care
Equipment
&
Supplies
—
0.1%
Sotera
Health
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.50%),
5.50%, 12/11/26
(h)
................
1,665
1,656,649
Health
Care
Providers
&
Services
—
0.4%
(h)
AHP
Health
Partners,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 06/30/25
.
486
484,584
Azalea
TopCo,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.76%, 07/24/26
.................
840
806,933
CHG
Healthcare
Services,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 06/07/23
.................
414
406,507
Dentalcorp
Health
Services
ULC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 06/06/25
.................
425
400,603
Envision
Healthcare
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.91%, 10/10/25
.
509
366,307
Eyecare
Partners
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 02/18/27
.................
312
292,382
EyeCare
Partners
LLC,
Delayed
Draw
1st
Lien
Term
Loan,
02/18/27
(m)
.............
73
68,565
Femur
Buyer,
Inc.,
1st
Lien
Term
Loan,
03/05/26
(m)
.....................
57
51,441
Gentiva
Health
Services,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.25%),
3.44%, 07/02/25
.................
495
484,526
MPH
Acquisition
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
2.75%),
3.75%, 06/07/23
.................
107
105,115
nThrive,
Inc.,
Term
Loan
B2,
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 10/20/22
.....
325
294,313
Option
Care
Health,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.50%),
4.65%, 08/06/26
.
684
676,376
Ortho-Clinical
Diagnostics,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.41%, 06/30/25
.................
1,034
987,760
Team
Health
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
3.75%, 02/06/24
.
59
49,102
WCG
Purchaser
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.24%, 01/08/27
.................
602
594,401
Wink
Holdco,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 12/02/24
.
342
341,115
WP
CityMD
Bidco
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.50%),
5.50%, 08/13/26
.
344
341,400
6,751,430
Security
Par
(000)
Value
Health
Care
Technology
—
0.1%
(h)
Change
Healthcare
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
3.50%, 03/01/24
.................
USD
1,109
$
1,084,212
GoodRx,
Inc.,
1st
Lien
Term
Loan,
10/10/25
(m)
352
345,379
1,429,591
Hotels,
Restaurants
&
Leisure
—
0.5%
(h)
Aimbridge
Acquisition
Co.,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.89%, 02/02/26
(c)
................
249
221,765
Aristocrat
Leisure
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.75%, 10/19/24
.
270
268,549
Boyd
Gaming
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Week
+
2.25%),
2.36%, 09/15/23
.
256
248,235
Caesars
Resort
Collection
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 12/23/24
.................
850
794,328
Caesars
Resort
Collection
LLC,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
4.50%),
4.65%
-
4.77%, 07/21/25
.................
985
951,894
CCM
Merger,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.25%),
3.00%, 08/06/21
.....
260
257,959
CityCenter
Holdings
LLC,
Term
Loan
B,
04/18/24
(m)
.....................
677
648,413
Flutter
Entertainment
plc,
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.72%, 07/10/25
.
296
295,008
Four
Seasons
Holdings,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 11/30/23
.................
491
477,002
Golden
Nugget
Online
Gaming,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
12.00%),
13.00%, 10/04/23
(c)
...............
58
65,984
Golden
Nugget,
Inc.,
Term
Loan
B,
(LIBOR
USD
2
Month
+
2.50%),
3.25%, 10/04/23
.
576
512,452
Herschend
Entertainment
Co.,
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.75%),
6.75%, 08/25/25
(c)
................
154
147,070
IRB
Holding
Corp.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
2.75%),
3.75%, 02/05/25
....
974
928,584
KFC
Holding
Co.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/03/25
.....
408
397,890
Playa
Resorts
Holding
BV,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
3.75%, 04/29/24
.
102
89,321
Playtika
Holding
Corp.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
6.00%),
7.00%, 12/10/24
.
395
395,029
Scientific
Games
International,
Inc.,
Term
Loan
B5,
(LIBOR
USD
3
Month
+
2.75%),
2.90%
-
3.61%, 08/14/24
.................
226
212,450
Station
Casinos
LLC,
Facility
Term
Loan
B1,
(LIBOR
USD
1
Month
+
2.25%),
2.50%, 02/08/27
.................
529
505,079
Whatabrands
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
2.91%, 07/31/26
.....
759
741,539
Wyndham
Hotels
&
Resorts,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 05/30/25
.................
148
142,790
8,301,341
Household
Durables
—
0.0%
Serta
Simmons
Bedding
LLC,
Term
Loan:
(LIBOR
USD
1
Month
+
7.50%),
8.50%, 08/10/23
(h)
..............
255
227,876
227,876
BlackRock
Income
Fund
Schedules
of
Investments
49
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Independent
Power
and
Renewable
Electricity
Producers
—
0.0%
Calpine
Corp.,
Term
Loan:
(h)
(LIBOR
USD
1
Month
+
2.25%),
2.40%, 04/05/26
...............
USD
610
$
592,702
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 08/12/26
...............
—
(o)
405
593,107
Industrial
Conglomerates
—
0.2%
(h)
AVSC
Holding
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
4.25%, 03/03/25
.................
1,248
926,991
Filtration
Group
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.16%, 03/31/25
....
654
640,659
Vertiv
Group
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.16%, 03/02/27
.....
2,014
1,979,400
3,547,050
Insurance
—
0.5%
(h)
Alliant
Holdings
Intermediate
LLC,
Term
Loan:
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 05/09/25
...............
1,157
1,122,525
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 05/09/25
...............
164
160,783
AmWINS
Group,
Inc.,
1st
Lien
Term
Loan,
01/25/24
(m)
.....................
885
876,010
AssuredPartners,
Inc.,
Term
Loan:
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 02/12/27
...............
342
331,408
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 02/12/27
...............
105
104,987
Asurion
LLC,
2nd
Lien
Term
Loan
B2,
(LIBOR
USD
1
Month
+
6.50%),
6.65%, 08/04/25
.
442
442,547
Asurion
LLC,
Term
Loan
B4,
08/04/22
(m)
....
508
501,908
Asurion
LLC,
Term
Loan
B6,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 11/03/23
......
552
542,825
HUB
International
Ltd.,
Term
Loan:
(LIBOR
USD
2
Month
+
3.00%),
3.22%
-
3.26%, 04/25/25
...............
1,169
1,128,106
(LIBOR
USD
3
Month
+
4.00%),
5.00%, 04/25/25
...............
238
236,854
Ryan
Specialty
Group
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
4.00%, 09/01/27
.
409
404,656
Sedgwick
Claims
Management
Services,
Inc.,
Term
Loan:
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 12/31/25
...............
430
413,775
(LIBOR
USD
1
Month
+
4.00%),
4.15%, 09/03/26
...............
664
653,285
 09/03/26
(m)
.....................
440
435,746
USI,
Inc.,
Term
Loan:
(LIBOR
USD
3
Month
+
3.00%),
3.22%, 05/16/24
...............
1,276
1,232,489
(LIBOR
USD
3
Month
+
4.00%),
4.22%, 12/02/26
...............
87
86,321
8,674,225
Interactive
Media
&
Services
—
0.1%
Camelot
U.S.
Acquisition
1
Co.,
Term
Loan,
10/30/26
(h)(m)
....................
1,099
1,093,043
IT
Services
—
1.3%
(h)
Ancestry.com
Operations,
Inc.,
1st
Lien
Term
Loan:
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 10/19/23
...............
727
725,333
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 08/27/26
...............
57
57,155
Security
Par
(000)
Value
IT
Services
(continued)
Applied
Systems,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
4.25%, 09/19/24
.................
USD
791
$
785,451
Applied
Systems,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.00%),
8.00%, 09/19/25
.................
211
212,788
Boxer
Parent
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 10/02/25
.
758
734,331
Camelot
US
Acquisition
1
Co.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 10/30/26
.................
1,284
1,257,958
CCC
Information
Services,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 04/29/24
.................
831
824,199
Epicor
Software
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.75%),
8.75%, 07/31/28
.................
528
541,200
Epicor
Software
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.25%),
5.25%, 07/30/27
.
1,303
1,299,771
Go
Daddy
Operating
Co.
LLC,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
2.50%),
2.66%, 08/10/27
.................
605
595,771
Greeneden
US
Holdings
I
LLC,
Term
Loan
B3,
12/01/23
(m)
.....................
1,595
1,589,692
IG
Investments
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.00%, 05/23/25
.................
861
846,819
Mitchell
International,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 11/29/24
.................
460
438,818
Mitchell
International,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.25%),
7.40%, 12/01/25
.................
197
185,948
Mitchell
International,
Inc.,
Facility
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.75%, 11/29/24
.................
523
512,216
Peak
10
Holding
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.72%, 08/01/24
.................
172
147,008
Peak
10
Holding
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.25%),
7.50%, 08/01/25
.................
168
98,700
Pug
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.50%),
3.66%, 02/12/27
(c)
..........
779
684,355
Rackspace
Technology
Global,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 11/03/23
............
85
83,053
Solera
LLC,
Term
Loan,
(LIBOR
USD
2
Month
+
2.75%),
2.94%, 03/03/23
..........
1,119
1,094,155
Sophia
LP,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.25%),
4.25%, 09/30/22
..........
1,108
1,101,987
Sophia
LP.,
Term
Loan,
09/23/27
(m)
.......
1,411
1,400,770
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/16/25
.................
333
321,678
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B5,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/16/25
.................
165
159,757
Trans
Union
LLC,
Term
Loan
B5,
(LIBOR
USD
1
Month
+
1.75%),
1.91%, 11/16/26
....
472
459,276
Veritas
US,
Inc.,
Term
Loan
B,
09/01/25
(m)
..
2,226
2,175,552
Verscend
Holding
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.50%),
4.65%, 08/27/25
.
828
818,563
WEX,
Inc.,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
2.25%),
2.40%, 05/15/26
.....
1,157
1,115,311
20,267,615
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
50
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Life
Sciences
Tools
&
Services
—
0.1%
(h)
Albany
Molecular
Research,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.00%),
8.00%, 08/30/25
.................
USD
60
$
59,000
Avantor
Funding,
Inc.,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
2.25%),
3.25%, 11/21/24
.
507
500,012
eResearchTechnology,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 02/04/27
.................
606
602,837
IQVIA,
Inc.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 03/07/24
.....
61
60,086
1,221,935
Machinery
—
0.2%
(h)
Gates
Global
LLC,
Term
Loan
B2,
(LIBOR
USD
1
Month
+
2.75%),
3.75%, 04/01/24
....
947
931,170
Ingersoll-Rand
Services
Co.,
Term
Loan
B1,
03/01/27
(m)
.....................
474
457,647
Terex
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
3.50%, 01/31/24
(c)
.........
70
68,187
Titan
Acquisition
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.36%, 03/28/25
....
1,890
1,781,168
Vertical
Midco
GmbH,
Term
Loan,
(LIBOR
USD
6
Month
+
4.25%),
4.57%, 06/30/27
....
465
460,601
3,698,773
Media
—
0.7%
(h)
Ascend
Learning
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 07/12/24
....
342
336,430
Cable
One,
Inc.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 05/01/24
.....
135
133,240
Charter
Communications
Operating
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/30/25
.................
563
552,528
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.50%),
3.76%, 08/21/26
.................
1,859
1,687,845
Cogeco
Communications
(USA)
II
LP,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 01/03/25
.................
53
51,564
CSC
Holdings
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.50%),
2.65%, 04/15/27
.....
1,320
1,277,132
Gray
Television,
Inc.,
Term
Loan
B2,
(LIBOR
USD
1
Month
+
2.25%),
2.41%, 02/07/24
.
213
208,252
Intelsat
Jackson
Holdings
SA,
Facility
Term
Loan,
07/13/22
(m)
.................
25
25,502
Intelsat
Jackson
Holdings
SA,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
4.75%),
8.00%, 11/27/23
.................
145
145,503
LCPR
Loan
Financing
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
5.00%),
5.15%, 10/15/26
.
529
527,900
Learfield
Communications
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
4.25%, 12/01/23
.................
1,119
947,492
Lions
Gate
Capital
Holdings
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
2.25%),
2.40%, 03/24/25
.................
536
516,230
Midcontinent
Communications,
Term
Loan,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 08/15/26
.................
216
211,576
Nexstar
Broadcasting,
Inc.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
2.75%),
2.91%, 09/18/26
.................
457
446,590
Radiate
HoldCo
LLC,
Term
Loan
B,
09/25/26
(m)
778
763,639
Terrier
Media
Buyer,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 01/01/38
.
750
730,609
Trader
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 09/28/23
....
1,281
1,242,477
Security
Par
(000)
Value
Media
(continued)
Virgin
Media
Bristol
LLC,
Facility
Term
Loan
N,
01/31/28
(m)
.....................
USD
754
$
730,807
Xplornet
Communications,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.75%),
4.90%, 12/31/28
.................
1,272
1,245,588
11,780,904
Metals
&
Mining
—
0.1%
(h)
Ball
Metalpack
Finco
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.50%),
4.76%, 07/31/25
.................
712
682,562
Equinox
Holdings,
Inc.,
1st
Lien
Term
Loan
B1,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 03/08/24
.................
973
743,246
1,425,808
Multiline
Retail
—
0.0%
NMG
Holding
Co.,
Inc.,
Term
Loan,
09/25/25
(h)
(m)
...........................
148
151,581
Multi-Utilities
—
0.0%
ExGen
Renewables
IV
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 11/28/24
(h)
................
448
446,873
Oil,
Gas
&
Consumable
Fuels
—
0.1%
(h)
California
Resources
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
10.38%),
11.38%, 12/31/21
(f)
(l)
............................
860
16,490
EG
Group
Ltd.,
Facility
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.22%, 02/07/25
.
992
970,783
987,273
Personal
Products
—
0.1%
Sunshine
Luxembourg
VII
SARL,
Facility
Term
Loan
B1,
(LIBOR
USD
3
Month
+
4.25%),
4.47%, 10/01/26
(h)
................
1,290
1,281,817
Pharmaceuticals
—
0.4%
(h)
Amneal
Pharmaceuticals
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.69%, 05/04/25
.................
762
716,118
Bausch
Health
Cos.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 06/02/25
.
1,954
1,912,892
Catalent
Pharma
Solutions,
Inc.,
Term
Loan
B2,
(LIBOR
USD
1
Month
+
2.25%),
3.25%, 05/18/26
.................
571
567,485
Elanco
Animal
Health,
Inc.,
Term
Loan,
08/01/27
(m)
.....................
173
167,875
Grifols
Worldwide
Operations
Ltd.,
Term
Loan
B,
(LIBOR
USD
1
Week
+
2.00%),
2.10%, 11/15/27
.................
274
267,941
Jaguar
Holding
Co.
I
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.50%),
3.50%, 08/18/22
.
2,071
2,061,481
5,693,792
Professional
Services
—
0.1%
(h)
Dun
&
Bradstreet
Corp.
(The),
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.89%, 02/06/26
.................
1,929
1,906,489
STG-Fairway
Holdings
LLC,
Facility
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 01/31/27
(c)
................
404
395,370
2,301,859
BlackRock
Income
Fund
Schedules
of
Investments
51
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Road
&
Rail
—
0.1%
(h)
Lineage
Logistics
LLC,
Term
Loan,
02/27/25
(m)
USD
1,701
$
1,674,565
Uber
Technologies,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 07/13/23
.
746
732,884
2,407,449
Semiconductors
&
Semiconductor
Equipment
—
0.0%
(h)
Microchip
Technology,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 05/29/25
(c)
296
294,436
ON
Semiconductor
Corp.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 09/19/26
.................
226
222,372
516,808
Software
—
1.0%
(h)
BY
Crown
Parent
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 02/02/26
.
1,192
1,175,253
Castle
US
Holding
Corp.,
Term
Loan,
01/29/27
(m)
.....................
764
732,792
Cornerstone
OnDemand,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.41%, 04/22/27
.................
311
310,157
DTI
Holdco,
Inc.,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
4.75%),
5.75%, 09/29/23
.....
529
460,924
Informatica
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.13%),
7.13%, 02/25/25
.
676
685,579
Informatica
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 02/25/27
.....
1,932
1,887,132
McAfee
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 09/30/24
.....
1,108
1,098,701
MH
Sub
I
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 09/13/24
.
287
283,000
Netsmart,
Inc.,1st
Lien
Term
Loan,
10/01/27
(m)
379
377,200
Refinitiv
US
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 10/01/25
.
2,547
2,518,796
Severin
Acquisition
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.41%, 08/01/25
.................
959
928,551
SolarWinds
Holdings,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 02/05/24
.................
468
458,288
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/16/25
.................
234
225,955
TIBCO
Software,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.25%),
7.40%, 03/03/28
.................
953
928,943
Ultimate
Software
Group,
Inc.
(The),
1st
Lien
Term
Loan:
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 05/04/26
...............
1,473
1,458,514
(LIBOR
USD
3
Month
+
4.00%),
4.75%, 05/04/26
...............
1,584
1,578,266
Ultimate
Software
Group,
Inc.
(The),
2nd
Lien
Term
Loan,
05/03/27
(m)
.............
613
623,219
15,731,270
Specialty
Retail
—
0.2%
(h)
Belron
Finance
US
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
2.50%),
2.75%, 11/13/25
.
91
90,002
Belron
Finance
US
LLC,
Term
Loan
B,
(LIBOR
USD
3
Month
+
2.50%),
2.74%, 11/07/24
.
553
544,602
IAA,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.25%),
2.44%, 06/28/26
(c)
..........
208
204,307
MED
ParentCo
LP,
Delayed
Draw
1st
Lien
Term
Loan,
08/31/26
(m)
.................
92
87,332
MED
ParentCo.
LP,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 08/31/26
.................
525
497,742
Security
Par
(000)
Value
Specialty
Retail
(continued)
Midas
Intermediate
Holdco
II
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
2.75%),
3.75%, 08/18/21
.................
USD
394
$
367,395
PetSmart,
Inc.,
Term
Loan,
03/11/22
(m)
.....
1,473
1,468,486
3,259,866
Technology
Hardware,
Storage
&
Peripherals
—
0.1%
(h)
Electronics
for
Imaging,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
5.00%),
07/23/26
(m)
.....................
606
488,624
Western
Digital
Corp.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
1.75%),
1.91%, 04/29/23
.
450
446,036
934,660
Trading
Companies
&
Distributors
—
0.1%
(h)
Beacon
Roofing
Supply,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.25%),
2.40%, 01/02/25
.................
249
241,167
HD
Supply,
Inc.,
Term
Loan
B5,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 10/17/23
.....
1,114
1,109,588
TMK
Hawk
Parent,
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.50%),
4.50%, 08/28/24
.
754
655,714
Trimark,
Term
Loan,
(LIBOR
USD
3
Month
+
0.00%),
0.00%, 01/01/28
............
226
217,137
2,223,606
Wireless
Telecommunication
Services
—
0.2%
(h)
Digicel
International
Finance
Ltd.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.25%),
3.80%, 05/27/24
.................
391
342,481
Hargray
Communications
Group,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 05/16/24
.................
410
407,402
SBA
Senior
Finance
II
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/11/25
.
675
657,085
T-Mobile
USA,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 04/01/27
.....
1,930
1,927,229
3,334,197
Total
Floating
Rate
Loan
Interests
—
11.4%
(Cost:
$187,002,116)
.............................
183,095,371
Foreign
Agency
Obligations
—
1.3%
Chile
—
0.1%
Corp.
Nacional
del
Cobre
de
Chile,
3.63%,
08/01/27
......................
1,163
1,272,758
China
—
0.0%
Chengdu
Xingcheng
Investment
Group
Co.
Ltd.,
2.50%,
03/20/21
..............
EUR
100
116,146
China
Minmetals
Corp.,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.72%),
3.75%
(a)(i)
...............
USD
300
305,931
Guangxi
Financial
Investment
Group
Co.
Ltd.,
5.75%,
01/23/21
.................
200
198,063
620,140
Colombia
—
0.2%
(b)
Ecopetrol
SA:
6.88%,
04/29/30
.................
1,146
1,370,616
5.88%,
05/28/45
.................
630
686,306
Empresas
Publicas
de
Medellin
ESP,
4.38%,
02/15/31
......................
310
310,000
Grupo
Energia
Bogota
SA
ESP,
4.88%,
05/15/30
......................
1,200
1,341,000
3,707,922
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
52
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
France
—
0.2%
Electricite
de
France
SA:
(EUR
Swap
Annual
6
Year
+
3.44%),
4.00%
(a)(i)
....................
EUR
300
$
367,122
(GBP
Swap
13
Year
+
3.96%),
6.00%
(a)(i)
.
GBP
800
1,111,621
(EUR
Swap
Annual
5
Year
+
3.37%),
2.88%
(a)(i)
....................
EUR
400
457,514
(EUR
Swap
Annual
5
Year
+
3.20%),
3.00%
(a)(i)
....................
200
228,625
2.00%,
12/09/49
.................
200
240,456
2,405,338
India
—
0.3%
Indian
Oil
Corp.
Ltd.,
4.75%,
01/16/24
.....
USD
1,200
1,275,000
Oil
India
Ltd.,
5.13%,
02/04/29
..........
640
684,000
Power
Finance
Corp.
Ltd.:
3.75%,
12/06/27
.................
303
298,171
4.50%,
06/18/29
.................
365
368,650
3.95%,
04/23/30
.................
800
774,900
Rural
Electrification
Corp.
Ltd.,
4.63%,
03/22/28
497
510,202
3,910,923
Indonesia
—
0.1%
Pertamina
Persero
PT:
4.30%,
05/20/23
.................
569
608,688
4.15%,
02/25/60
.................
659
656,557
Perusahaan
Penerbit
SBSN
Indonesia
III,
3.80%,
06/23/50
.................
732
779,123
2,044,368
Italy
—
0.0%
Banca
Monte
dei
Paschi
di
Siena
SpA:
2.63%,
04/28/25
.................
EUR
125
144,907
(EUR
Swap
Annual
5
Year
+
8.92%),
8.50%,
09/10/30
(a)
..............
250
282,121
427,028
Mexico
—
0.0%
Petroleos
Mexicanos:
6.50%,
03/13/27
.................
USD
461
430,081
5.35%,
02/12/28
.................
140
120,498
550,579
Panama
—
0.1%
Banco
Latinoamericano
de
Comercio
Exterior
SA,
2.38%,
09/14/25
(b)
.............
858
866,580
Empresa
de
Transmision
Electrica
SA,
5.13%,
05/02/49
......................
1,139
1,313,053
2,179,633
Peru
—
0.1%
Corp.
Financiera
de
Desarrollo
SA,
2.40%,
09/28/27
(b)
.....................
659
662,084
Saudi
Arabia
—
0.1%
Saudi
Arabian
Oil
Co.,
3.50%,
04/16/29
....
1,181
1,295,778
Sri
Lanka
—
0.1%
SriLankan
Airlines
Ltd.,
7.00%,
06/25/24
...
1,700
1,139,000
Total
Foreign
Agency
Obligations
—
1.3%
(Cost:
$19,813,071)
..............................
20,215,551
Foreign
Government
Obligations
—
0.3%
Indonesia
—
0.1%
Pertamina
Persero
PT,
4.18%,
01/21/50
...
800
806,600
Maldives
—
0.0%
Republic
of
Maldives,
7.00%,
06/07/22
....
900
668,250
Security
Par
(000)
Value
Mongolia
—
0.0%
State
of
Mongolia,
8.75%,
03/09/24
.......
USD
256
$
286,160
Sri
Lanka
—
0.2%
Democratic
Socialist
Republic
of
Sri
Lanka:
6.85%,
03/14/24
.................
200
146,625
6.35%,
06/28/24
.................
200
144,313
6.83%,
07/18/26
.................
1,000
701,875
7.85%,
03/14/29
.................
200
137,812
7.55%,
03/28/30
.................
2,600
1,755,000
2,885,625
Total
Foreign
Government
Obligations
—
0.3%
(Cost:
$6,180,914)
..............................
4,646,635
Shares
Investment
Companies
—
2.6%
Invesco
Senior
Loan
ETF
.............
123,131
2,676,868
iShares
0-5
Year
High
Yield
Corporate
Bond
ETF
*
.........................
530,200
23,302,290
iShares
Floating
Rate
Bond
ETF
*
........
308,079
15,625,767
Total
Investment
Companies
—
2.6%
(Cost:
$43,077,300)
..............................
41,604,925
Par
(000)
Non-Agency
Mortgage-Backed
Securities
—
1.9%
Collateralized
Mortgage
Obligations
—
0.4%
Alternative
Loan
Trust:
Series
2006-OA11,
Class
A1B,
0.34%,
09/25/46
(d)
...................
2,475
2,299,056
Series
2007-3T1,
Class
1A1,
6.00%,
04/25/37
....................
2,164
1,411,255
LSTAR
Securities
Investment
Trust,
Series
2019-1,
Class
A1,
1.86%,
03/01/24
(b)(d)
..
921
911,503
MCM
Trust,
Series
2018-NPL2,
Class
A,
4.00%,
10/25/28
(b)(c)(e)
..............
990
989,655
5,611,469
Commercial
Mortgage-Backed
Securities
—
1.4%
BAMLL
Commercial
Mortgage
Securities
Trust,
Series
2016-ISQ,
Class
E,
3.73%,
08/14/34
(b)(d)
....................
861
828,183
BX
Commercial
Mortgage
Trust,
Series
2019-
XL,
Class
G,
2.45%,
10/15/36
(b)(d)
......
2,848
2,801,608
Citigroup
Commercial
Mortgage
Trust,
Series
2016-GC37,
Class
D,
2.79%,
04/10/49
(b)
.
1,000
722,173
Commercial
Mortgage
Trust,
Series
2016-
667M,
Class
D,
3.28%,
10/10/36
(b)(d)
....
1,000
973,935
CSAIL
Commercial
Mortgage
Trust:
Series
2015-C2,
Class
B,
4.21%,
06/15/57
(d)
2,000
1,913,812
Series
2019-C17,
Class
C,
3.93%,
09/15/52
2,158
2,321,603
DBJPM
Mortgage
Trust,
Series
2016-C3,
Class
D,
3.63%,
08/10/49
(b)(d)
.............
230
177,143
DBUBS
Mortgage
Trust,
Series
2017-BRBK,
Class
D,
3.65%,
10/10/34
(b)(c)(d)
........
990
984,053
GS
Mortgage
Securities
Trust,
Series
2015-
GC32,
Class
D,
3.35%,
07/10/48
......
440
342,129
Hudson
Yards
Mortgage
Trust,
Series
2019-
55HY,
Class
F,
3.04%,
12/10/41
(b)(d)
.....
1,886
1,655,436
JPMCC
Commercial
Mortgage
Securities
Trust,
Series
2017-JP5,
Class
D,
4.78%,
03/15/50
(b)(d)
....................
990
731,117
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust:
Series
2015-C23,
Class
D,
4.29%,
07/15/50
(b)(d)
..................
310
273,509
BlackRock
Income
Fund
Schedules
of
Investments
53
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2015-C25,
Class
D,
3.07%,
10/15/48
USD
650
$
565,973
USDC,
Series
2018,
Class
E,
4.64%,
05/13/38
(b)(d)
....................
2,000
1,658,715
Velocity
Commercial
Capital
Loan
Trust
(b)(d)
:
Series
2019-3,
Class
M2,
3.28%,
10/25/49
3,370
3,261,081
Series
2019-3,
Class
M3,
3.38%,
10/25/49
978
911,444
Wells
Fargo
Commercial
Mortgage
Trust
(d)
:
Series
2015-C30,
Class
C,
4.65%,
09/15/58
1,000
1,035,856
Series
2016-NXS5,
Class
D,
5.14%,
01/15/59
....................
750
651,394
21,809,164
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.1%
(d)
Benchmark
Mortgage
Trust,
Series
2019-B13,
Class
XA,
1.27%,
08/15/57
..........
25,628
1,986,443
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust,
Series
2016-JP3,
Class
XC,
0.75%,
08/15/49
(b)
.............
8,700
323,643
2,310,086
Total
Non-Agency
Mortgage-Backed
Securities
—
1.9%
(Cost:
$31,042,702)
..............................
29,730,719
Beneficial
Interest
(000)
Other
Interests
—
0.0%
(p)
Capital
Markets
—
0.0%
Millennium
Corp.
Claim
(c)
..............
811
—
Total
Other
Interests
—
0.0%
.........................
—
Pa
r
(
000)
Preferred
Securities
—
0.8%
Capital
Trusts
—
0.8%
Banks
—
0.2%
(h)(i)
Bank
of
America
Corp.:
Series
X,
6.25%
.................
370
395,345
Series
Z,
6.50%
.................
30
33,345
Series
AA,
6.10%
................
240
261,267
Series
DD,
6.30%
................
60
67,806
Citigroup,
Inc.,
Series
V,
4.70%
.........
440
425,150
JPMorgan
Chase
&
Co.:
Series
FF,
5.00%
.................
489
488,157
Series
HH,
4.60%
................
180
176,400
Lloyds
Banking
Group
plc,
6.41%
(b)
.......
100
116,000
Wells
Fargo
&
Co.,
Series
U,
5.87%
......
165
177,641
2,141,111
Capital
Markets
—
0.1%
Morgan
Stanley,
Series
J,
4.08%
(h)(i)
......
2,250
2,200,320
Consumer
Finance
—
0.5%
General
Motors
Financial
Co.,
Inc.,
Series
C,
5.70%
(h)(i)
......................
8,540
8,572,025
Total
Capital
Trusts
—
0.8%
(Cost:
$12,745,041)
..............................
12,913,456
Security
Shares
Value
Preferred
Stocks
—
0.0%
Banks
—
0.0%
CF-B
L2
(D),
LLC
(Acquired
4/08/15-12/15/15,
cost
$53,170)
(i)(q)
.................
56,714
$
4,480
Total
Preferred
Stocks
—
0.0%
(Cost:
$55,498)
................................
4,480
Total
Preferred
Securities
—
0.8%
(Cost:
$12,800,539)
..............................
12,917,936
Par
(000)
U.S.
Government
Sponsored
Agency
Securities
—
0.1%
Collateralized
Mortgage
Obligations
—
0.1%
Federal
Home
Loan
Mortgage
Corp.
Structured
Agency
Credit
Risk
Debt
Notes
Variable
Rate
Notes,
Series
2018-DNA1,
Class
B1,
(LIBOR
USD
1
Month
+
3.15%),
3.30%, 07/25/30
(a)
................
USD
1,500
1,334,740
Total
U.S.
Government
Sponsored
Agency
Securities
—
0.1%
(Cost:
$1,500,000)
..............................
1,334,740
Shares
Warrants
—
0.0%
Oil,
Gas
&
Consumable
Fuels
—
0.0%
SM
Energy
Co.
(Issued/exercisable
06/18/20,
1
share
for
1
warrant,
Expires
06/30/23,
Strike
Price
USD
0.01)
(f)
................
18,140
28,661
Total
Warrants
—
0.0%
.............................
28,661
Total
Long-Term
Investments
—
91.2%
(Cost:
$1,444,158,283)
...........................
1,459,757,512
Short-Term
Securities
—
8.6%
(r)
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.02%
*
...................
137,443,744
137,443,744
JPMorgan
U.S.
Treasury
Plus
Money
Market
Fund,
Agency
Class,
0.01%
..........
993,169
993,169
Total
Short-Term
Securities
—
8.6%
(Cost:
$138,436,913)
.............................
138,436,913
Total
Options
Purchased
—
0.1%
(Cost:
$740,530)
................................
222,078
Total
Investments
Before
Options
Written
—
99.9%
(Cost:
$1,583,335,726
)
...........................
1,598,416,503
Total
Options
Written
—
(0.0)%
(Premium
Received
—
$31,880)
.....................
(42,518)
Total
Investments
Net
of
Options
Written
—
99.9%
(Cost:
$1,583,303,846
)
...........................
1,598,373,985
Other
Assets
Less
Liabilities
—
0.1%
...................
2,388,739
Net
Assets
—
100.0%
..............................
$
1,600,762,724
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
54
Schedule
of
Investments
(continued)
September
30,
2020
(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)
Non-income
producing
security.
(g)
Convertible
security.
(h)
Variable
rate
security.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(i)
Perpetual
security
with
no
stated
maturity
date.
(j)
Zero-coupon
bond.
(k)
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.
(l)
Issuer
filed
for
bankruptcy
and/or
is
in
default.
(m)
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.
(n)
Fixed
rate.
(o)
Amount
is
less
than
500.
(p)
Other
interests
represent
beneficial
interests
in
liquidation
trusts
and
other
reorganization
or
private
entities.
(q)
Restricted
security
as
to
resale,
excluding
144A
securities.
The
Fund
held
restricted
securities
with
a
current
value
of
$4,480,
representing
less
than
0.05%
of
its
net
assets
as
of
period
end,
and
an
original
cost
of
$53,170.
(r)
Annualized
7-day
yield
as
of
period
end.
*
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2020
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/19
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/20
Shares
Held
at
09/30/20
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
.
$
124,707,965
$
12,735,779
$
—
$
—
$
—
$
137,443,744
137,443,744
$
1,013,101
$
303
iShares
0-5
Year
High
Yield
Corporate
Bond
ETF
.....
24,648,998
—
—
—
(1,346,708)
23,302,290
530,200
1,251,010
—
iShares
Floating
Rate
Bond
ETF
25,073,774
—
(8,240,673)
(1,106,413)
(100,921)
15,625,767
308,079
403,683
—
iShares
J.P.
Morgan
USD
Emerging
Markets
Bond
ETF
(b)
3,719,353
—
(3,009,955)
(484,137)
(225,261)
—
—
81,431
—
$
(1,590,550)
$
(1,672,890)
$
176,371,801
$
2,749,225
$
303
(a)
Represents
net
amount
purchased
(sold).
(b)
As
of
period
end,
the
entity
is
no
longer
held.
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.
BlackRock
Income
Fund
Schedules
of
Investments
55
Schedule
of
Investments
(continued)
September
30,
2020
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
U.S.
Treasury
10
Year
Note
...................................................
59
12/21/20
$
8,232
$
(632)
U.S.
Treasury
Long
Bond
....................................................
146
12/21/20
25,737
(86,161)
U.S.
Treasury
Ultra
Bond
....................................................
28
12/21/20
6,211
(17,825)
U.S.
Treasury
2
Year
Note
....................................................
138
12/31/20
30,493
15,947
U.S.
Treasury
5
Year
Note
....................................................
251
12/31/20
31,634
18,707
(69,964)
Short
Contracts
Euro-
Bobl
...............................................................
9
12/08/20
1,426
(231)
Euro-Bund
..............................................................
10
12/08/20
2,046
(6,332)
Euro-Schatz
.............................................................
1
12/08/20
132
(67)
U.S.
Treasury
10
Year
Ultra
Note
...............................................
165
12/21/20
26,387
(94,421)
Long
Gilt
...............................................................
2
12/29/20
351
(1,918)
(102,969)
$
(172,933)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
EUR
150,500
USD
176,435
Bank
of
America
NA
10/05/20
$
32
USD
360,246
EUR
301,000
Citibank
NA
10/05/20
7,317
EUR
50,000
USD
58,335
Bank
of
America
NA
10/19/20
308
EUR
460,000
USD
538,491
BNP
Paribas
SA
10/19/20
1,030
GBP
390,000
USD
496,143
JPMorgan
Chase
Bank
NA
10/19/20
7,138
USD
1,630,037
EUR
1,380,000
Bank
of
America
NA
10/19/20
11,473
USD
11,743
EUR
10,000
Citibank
NA
10/19/20
14
USD
23,807
EUR
20,000
JPMorgan
Chase
Bank
NA
10/19/20
349
USD
13,757,167
EUR
11,600,000
Morgan
Stanley
&
Co.
International
plc
10/19/20
151,850
USD
110,523,987
EUR
93,340,000
UBS
AG
10/19/20
1,048,098
USD
1,154,086
GBP
890,000
Bank
of
America
NA
10/19/20
5,573
USD
31,305,599
GBP
24,140,000
JPMorgan
Chase
Bank
NA
10/19/20
153,800
USD
176,736
EUR
150,500
Goldman
Sachs
International
11/04/20
158
HKD
5,900,000
USD
760,937
Morgan
Stanley
&
Co.
International
plc
12/16/20
125
USD
112,191
EUR
94,680
UBS
AG
12/16/20
988
1,388,253
EUR
150,500
USD
176,627
Goldman
Sachs
International
10/05/20
(161)
CHF
30,000
USD
33,094
Citibank
NA
10/19/20
(507)
EUR
570,000
USD
668,648
Barclays
Bank
plc
10/19/20
(111)
EUR
460,000
USD
546,986
UBS
AG
10/19/20
(7,465)
GBP
300,000
USD
387,875
Barclays
Bank
plc
10/19/20
(736)
GBP
1,140,000
USD
1,478,331
Deutsche
Bank
AG
10/19/20
(7,203)
GBP
1,140,000
USD
1,471,480
Morgan
Stanley
&
Co.
International
plc
10/19/20
(351)
USD
280,536
EUR
240,000
JPMorgan
Chase
Bank
NA
10/19/20
(953)
USD
570,888
EUR
490,000
UBS
AG
10/19/20
(3,820)
USD
176,545
EUR
150,500
Bank
of
America
NA
11/04/20
(33)
USD
4,835,677
HKD
37,497,533
Bank
of
America
NA
12/16/20
(1,263)
USD
1,165,249
JPY
123,581,620
Goldman
Sachs
International
12/16/20
(7,785)
(30,388)
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
56
Schedule
of
Investments
(continued)
September
30,
2020
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
S&P
500
Index
.............................
5
12/18/20
USD
3,500.00
USD
1,682
$
42,325
Put
EURO
STOXX
50
Index
.......................
75
10/16/20
EUR
3,250.00
EUR
2,395
76,195
$
118,520
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
Put
10-Year
Interest
Rate
Swap
(a)
2.50%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
01/15/21
2.50
%
USD
57,250
$
3,600
30-Year
Interest
Rate
Swap
(a)
2.50%
Semi-Annual
3
month
LIBOR
Quarterly
JPMorgan
Chase
Bank
NA
08/13/21
2.50
USD
18,000
99,958
$
103,558
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
S&P
500
Index
..............................
5
12/18/20
USD
3,600.00
USD
1,682
$
(24,975)
Put
EURO
STOXX
50
Index
........................
75
10/16/20
EUR
3,050.00
EUR
2,395
(17,543)
$
(42,518)
Centrally
Cleared
Credit
Defa
ul
t
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.IG.34.V1
.....
1.00
%
Quarterly
06/20/25
BBB+
USD
31,000
$
222,356
$
140,995
$
81,361
ITRAXX.EUR.
CROSSOVER.34.V1
.
5.00
Quarterly
12/20/25
B
EUR
510
41,101
41,101
—
$
263,457
$
182,096
$
81,361
(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
Swap
s
—
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)
Nordstrom,
Inc.
...........
1.00
%
Quarterly
Barclays
Bank
plc
06/20/25
USD
57
$
10,909
$
12,898
$
(1,989)
Nordstrom,
Inc.
...........
1.00
Quarterly
BNP
Paribas
SA
06/20/25
USD
67
12,806
15,109
(2,303)
ITRAXX.ASIA.XJ.IG.34.V1
...
1.00
Quarterly
JPMorgan
Chase
Bank
NA
12/20/25
USD
2,043
(24,247)
(21,329)
(2,918)
BlackRock
Income
Fund
Schedules
of
Investments
57
Schedule
of
Investments
(continued)
September
30,
2020
i
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)
ITRAXX.ASIA.XJ.IG.34.V1
...
1.00
%
Quarterly
JPMorgan
Chase
Bank
NA
12/20/25
USD
2,777
$
(32,969)
$
(30,684)
$
(2,285)
$
–
$
–
$
–
$
(33,501)
$
(24,006)
$
(9,495)
$
–
$
–
$
–
OTC
Credit
Default
Swap
s
—
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)
Casino
Guichard
Perrachon
SA
.............
1.00
%
Quarterly
Citibank
NA
06/20/23
B
EUR
16
$
(4,071)
$
(1,335)
$
(2,736)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
Citibank
NA
06/20/23
NR
EUR
33
(8,414)
(2,654)
(5,760)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/23
NR
EUR
33
(8,421)
(2,656)
(5,765)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/23
NR
EUR
20
(5,053)
(1,492)
(3,561)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/23
NR
EUR
13
(3,369)
(995)
(2,374)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
Goldman
Sachs
International
12/20/23
NR
EUR
160
(45,529)
(16,646)
(28,883)
CenturyLink,
Inc.
......
1.00
Quarterly
Barclays
Bank
plc
12/20/23
NR
USD
30
(1,174)
(1,482)
308
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
20
(3,429)
597
(4,026)
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
200
(34,294)
7,934
(42,228)
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
80
(13,718)
4,156
(17,874)
Altice
France
SA
......
5.00
Quarterly
Credit
Suisse
International
06/20/25
B
EUR
190
15,410
20,767
(5,357)
Casino
Guichard
Perrachon
SA
.............
5.00
Quarterly
Credit
Suisse
International
06/20/25
B
EUR
100
(21,433)
(6,339)
(15,094)
Garfunkelux
Holdco
2
SA
5.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/25
B-
EUR
140
(22,818)
(9,792)
(13,026)
Rolls-Royce
plc
.......
1.00
Quarterly
Citibank
NA
06/20/25
BB-
EUR
38
(7,198)
(6,433)
(765)
Rolls-Royce
plc
.......
1.00
Quarterly
Citibank
NA
06/20/25
BB-
EUR
82
(15,785)
(14,106)
(1,679)
Rolls-Royce
plc
.......
1.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/25
BB-
EUR
80
(15,322)
(11,155)
(4,167)
$
(194,618)
$
(41,631)
$
(152,987)
(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.
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.23
%
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
58
Schedule
of
Investments
(continued)
September
30,
2020
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Balances
Reported
in
the
Statements
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)
...........................................
$
182,096
$
—
$
81,361
$
—
$
—
OTC
Swaps
.....................................................
61,461
(127,098)
308
(162,790)
—
Options
Written
...................................................
N/A
N/A
9,878
(20,516)
(42,518)
(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
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
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)
.....
$
—
$
—
$
—
$
—
$
34,654
$
—
$
34,654
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
1,388,253
—
—
1,388,253
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
118,520
—
103,558
—
222,078
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
81,361
—
—
—
—
81,361
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
61,769
—
—
—
—
61,769
$
—
$
143,130
$
118,520
$
1,388,253
$
138,212
$
—
$
1,788,115
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
207,587
—
207,587
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
30,388
—
—
30,388
Options
written
Options
written
at
value
.....................
—
—
42,518
—
—
—
42,518
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
289,888
—
—
—
—
289,888
$
—
$
289,888
$
42,518
$
30,388
$
207,587
$
—
$
570,381
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
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
forward
settling
swaptions.
(c)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
For
the
year
ended
September
30,
2020,
the
effect
of
derivative
financial
instruments
in
the
Statements
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
.......................
$
—
$
—
$
(244,089)
$
—
$
16,417,618
$
—
$
16,173,529
Forward
foreign
currency
exchange
contracts
....
—
—
—
(3,056,697)
—
—
(3,056,697)
Options
purchased
(a)
....................
—
(1,575,623)
(5,612,098)
—
(1,720,741)
—
(8,908,462)
Options
written
........................
—
(1,683,760)
2,295,550
—
118,581
—
730,371
Swaps
..............................
—
(9,204,553)
—
—
—
—
(9,204,553)
$
—
$
(12,463,936)
$
(3,560,637)
$
(3,056,697)
$
14,815,458
$
—
$
(4,265,812)
BlackRock
Income
Fund
Schedules
of
Investments
59
Schedule
of
Investments
(continued)
September
30,
2020
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
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
.......................
—
—
(1,837)
—
451,708
—
449,871
Forward
foreign
currency
exchange
contracts
....
—
—
—
780,244
—
—
780,244
Options
purchased
(b)
....................
—
223,495
1,553,337
—
(144,317)
—
1,632,515
Options
written
........................
—
(97,037)
(661,826)
—
—
—
(758,863)
Swaps
..............................
—
(955,701)
—
—
—
—
(955,701)
$
—
$
(829,243)
$
889,674
$
780,244
$
307,391
$
—
$
1,148,066
(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
..................................................................................
$
147,845,789
Average
notional
value
of
contracts
—
short
.................................................................................
23,200,007
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
100,323,424
Average
amounts
sold
—
in
USD
........................................................................................
3,204,905
Options:
Average
value
of
option
contracts
purchased
................................................................................
197,410
Average
value
of
option
contracts
written
...................................................................................
121,924
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
138,562,500
Average
notional
value
of
swaption
contracts
written
...........................................................................
—
(a)
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
1,538,553
Average
notional
value
—
sell
protection
...................................................................................
40,618,435
(a)
Derivative
not
held
at
any
quarter-end.
The
risk
exposure
table
serves
as
an
indicator
of
activity
during
the
period.
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
157,336
$
299,102
Forward
foreign
currency
exchange
contracts
.................................................................
1,388,253
30,388
Options
(a)(b)
........................................................................................
222,078
42,518
Swaps
—
Centrally
cleared
.............................................................................
55,178
—
Swaps
—
OTC
(c)
....................................................................................
61,769
289,888
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
1,884,614
$
661,896
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(331,034)
(341,620)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
1,553,580
$
320,276
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
of
Assets
and
Liabilities
and
reported
in
the
Schedule
of
Investments.
(b)
Includes
forward
settling
swaptions.
(c)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/received
in
the
Statements
of
Assets
and
Liabilities.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
60
Schedule
of
Investments
(continued)
September
30,
2020
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
(b)
Net
Amount
of
Derivative
Assets
(c)(d)
Bank
of
America
NA
..............................
$
17,386
$
(1,296)
$
—
$
—
$
16,090
Barclays
Bank
plc
................................
13,206
(4,318)
—
—
8,888
BNP
Paribas
SA
.................................
16,139
(2,303)
—
—
13,836
Citibank
NA
....................................
10,931
(10,931)
—
—
—
Credit
Suisse
International
..........................
33,454
(33,454)
—
—
—
Goldman
Sachs
International
........................
158
(158)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
261,245
(113,152)
—
(60,000)
88,093
Morgan
Stanley
&
Co.
International
plc
..................
151,975
(351)
—
—
151,624
UBS
AG
......................................
1,049,086
(11,285)
—
—
1,037,801
$
1,553,580
$
(17
7,248)
$
—
$
(60,000)
$
1,316,332
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
(e)
Net
Amount
of
Derivative
Liabilities
(d)(f)
Bank
of
America
NA
..............................
$
1,296
$
(1,296)
$
—
$
—
$
—
Barclays
Bank
plc
................................
4,318
(4,318)
—
—
—
BNP
Paribas
SA
.................................
2,303
(2,303)
—
—
—
Citibank
NA
....................................
35,975
(10,931)
—
—
25,044
Credit
Suisse
International
..........................
90,918
(33,454)
—
—
57,464
Deutsche
Bank
AG
...............................
7,203
—
—
—
7,203
Goldman
Sachs
International
........................
53,475
(158)
—
—
53,317
JPMorgan
Chase
Bank
NA
..........................
113,152
(113,152)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
351
(351)
—
—
—
UBS
AG
......................................
11,285
(11,285)
—
—
—
$
320,276
$
(177,248)
$
—
$
—
$
143,028
(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)
Excess
of
collateral
received
from
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(d)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(e)
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(f)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
BlackRock
Income
Fund
Schedules
of
Investments
61
Schedule
of
Investments
(continued)
September
30,
2020
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
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.
The
breakdown
of
the
Fund's
investments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
....................................
$
—
$
103,217,348
$
11,344,347
$
114,561,695
Common
Stocks:
Building
Products
.......................................
8,146
—
—
8,146
Chemicals
............................................
544,407
—
—
544,407
Commercial
Services
&
Supplies
.............................
—
—
9,816
9,816
Construction
&
Engineering
................................
115,999
—
—
115,999
Consumer
Finance
......................................
17,471
—
—
17,471
Diversified
Telecommunication
Services
........................
—
44,191
—
44,191
Entertainment
.........................................
187,933
—
—
187,933
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
1,398,076
—
—
1,398,076
Health
Care
Providers
&
Services
............................
—
—
4
4
Life
Sciences
Tools
&
Services
..............................
37,804
—
—
37,804
Machinery
............................................
—
4,669
—
4,669
Media
...............................................
76,920
—
—
76,920
Metals
&
Mining
........................................
395,852
—
—
395,852
Pharmaceuticals
.......................................
385,159
—
—
385,159
Professional
Services
....................................
—
80,963
—
80,963
Software
.............................................
182
—
—
182
Corporate
Bonds
........................................
—
1,048,313,687
—
1,048,313,687
Floating
Rate
Loan
Interests:
Aerospace
&
Defense
....................................
—
3,192,101
—
3,192,101
Airlines
..............................................
—
2,441,387
—
2,441,387
Auto
Components
......................................
—
2,529,865
—
2,529,865
Automobiles
..........................................
—
881,152
—
881,152
Building
Products
.......................................
—
1,873,130
—
1,873,130
Capital
Markets
........................................
—
503,795
481,660
985,455
Chemicals
............................................
—
5,599,865
337,880
5,937,745
Commercial
Services
&
Supplies
.............................
—
7,775,219
361,336
8,136,555
Construction
&
Engineering
................................
—
1,155,448
—
1,155,448
Construction
Materials
....................................
—
2,352,092
—
2,352,092
Containers
&
Packaging
..................................
—
5,870,972
—
5,870,972
Diversified
Consumer
Services
..............................
—
5,968,596
—
5,968,596
Diversified
Financial
Services
...............................
—
8,801,490
229,224
9,030,714
Diversified
Telecommunication
Services
........................
—
9,187,650
320,578
9,508,228
Electric
Utilities
........................................
—
691,764
—
691,764
Electrical
Equipment
.....................................
—
1,607,089
—
1,607,089
Entertainment
.........................................
—
3,005,079
—
3,005,079
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
—
768,720
—
768,720
Food
&
Staples
Retailing
..................................
—
1,668,814
—
1,668,814
Food
Products
.........................................
—
5,383,501
166,566
5,550,067
Health
Care
Equipment
&
Supplies
...........................
—
1,656,649
—
1,656,649
Health
Care
Providers
&
Services
............................
—
6,751,430
—
6,751,430
Health
Care
Technology
..................................
—
1,429,591
—
1,429,591
Hotels,
Restaurants
&
Leisure
..............................
—
7,866,522
434,819
8,301,341
Household
Durables
.....................................
—
227,876
—
227,876
Independent
Power
and
Renewable
Electricity
Producers
............
—
593,107
—
593,107
Industrial
Conglomerates
..................................
—
3,547,050
—
3,547,050
Insurance
............................................
—
8,674,225
—
8,674,225
Interactive
Media
&
Services
...............................
—
1,093,043
—
1,093,043
IT
Services
...........................................
—
19,583,260
684,355
20,267,615
Life
Sciences
Tools
&
Services
..............................
—
1,221,935
—
1,221,935
Machinery
............................................
—
3,630,586
68,187
3,698,773
Media
...............................................
—
11,780,904
—
11,780,904
Metals
&
Mining
........................................
—
1,425,808
—
1,425,808
Multiline
Retail
.........................................
—
151,581
—
151,581
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Income
Fund
62
Schedule
of
Investments
(continued)
September
30,
2020
Level
1
Level
2
Level
3
Total
Multi-Utilities
..........................................
$
—
$
446,873
$
—
$
446,873
Oil,
Gas
&
Consumable
Fuels
...............................
—
987,273
—
987,273
Personal
Products
......................................
—
1,281,817
—
1,281,817
Pharmaceuticals
.......................................
—
5,693,792
—
5,693,792
Professional
Services
....................................
—
1,906,489
395,370
2,301,859
Road
&
Rail
...........................................
—
2,407,449
—
2,407,449
Semiconductors
&
Semiconductor
Equipment
....................
—
222,372
294,436
516,808
Software
.............................................
—
15,731,270
—
15,731,270
Specialty
Retail
........................................
—
3,055,559
204,307
3,259,866
Technology
Hardware,
Storage
&
Peripherals
....................
—
934,660
—
934,660
Trading
Companies
&
Distributors
............................
—
2,223,606
—
2,223,606
Wireless
Telecommunication
Services
.........................
—
3,334,197
—
3,334,197
Foreign
Agency
Obligations
.................................
—
20,215,551
—
20,215,551
Foreign
Government
Obligations
..............................
—
4,646,635
—
4,646,635
Investment
Companies
....................................
41,604,925
—
—
41,604,925
Non-Agency
Mortgage-Backed
Securities
........................
—
27,757,011
1,973,708
29,730,719
Preferred
Securities
......................................
—
12,913,456
—
12,913,456
U.S.
Government
Sponsored
Agency
Securities
....................
—
1,334,740
—
1,334,740
Warrants
..............................................
—
28,661
—
28,661
Short-Term
Securities
.......................................
138,436,913
—
—
138,436,913
Options
Purchased:
Equity
contracts
..........................................
118,520
—
—
118,520
Interest
rate
contracts
......................................
—
103,558
—
103,558
Unfunded
Floating
Rate
Loan
Interests
(a)
..............................
—
397
—
397
Liabilities:
Unfunded
Floating
Rate
Loan
Interests
(a)
..............................
—
(1,804)
—
(1,804)
Subtotal
....................................................
$
183,328,307
$
1,397,775,716
$
17,306,593
$
1,598,410,616
Investments
valued
at
NAV
(b)
......................................
4,480
$
—
Total
Investments
..............................................
$
1,598,415,096
$
—
Derivative
Financial
Instruments
(c)
Assets:
Credit
contracts
...........................................
$
—
$
81,669
$
—
$
81,669
Foreign
currency
exchange
contracts
............................
—
1,388,253
—
1,388,253
Interest
rate
contracts
.......................................
34,654
—
—
34,654
Liabilities:
Credit
contracts
...........................................
—
(162,790)
—
(162,790)
Equity
contracts
...........................................
(42,518)
—
—
(42,518)
Foreign
currency
exchange
contracts
............................
—
(30,388)
—
(30,388)
Interest
rate
contracts
.......................................
(207,587)
—
—
(207,587)
$
(215,451)
$
1,276,744
$
—
$
1,061,293
(a)
Unfunded
floating
rate
loan
interests
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
commitment.
(b)
Certain
investments
of
the
Fund
were
fair
valued
using
NAV
per
share
as
no
quoted
market
value
is
available
and
therefore
have
been
excluded
from
the
fair
value
hierarchy.
(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.
BlackRock
Income
Fund
Schedules
of
Investments
63
Schedule
of
Investments
(continued)
September
30,
2020
See
notes
to
financial
statements.
A
reconciliation
of
Level
3
financial
instruments
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:
Asset-
Backed
Securities
Common
Stocks
Floating
Rate
Loan
Interests
Non-Agency
Mortgage-
Backed
Securities
Total
Investments:
Assets:
Opening
balance,
as
of
September
30,
2019
...............................................
$
6,491,103
$
67,907
$
8,561,187
$
3,182,368
$
18,302,565
Transfers
into
level
3
.............................................................
—
27
1,783,190
1,018,907
2,802,124
Transfers
out
of
level
3
............................................................
—
—
(4,422,346)
—
(4,422,346)
Accrued
discounts/premiums
.........................................................
(215)
—
7,897
(616)
7,066
Net
realized
gain
(loss)
............................................................
1,467
(29,093)
(694,702)
5,325
(717,003)
Net
change
in
unrealized
appreciation
(depreciation)
(a)(b)
.......................................
(103,521)
12,987
(126,445)
(63,253)
(280,232)
Purchases
.....................................................................
6,787,977
—
7,152,655
—
13,940,632
Sales
........................................................................
(1,832,464)
(42,008)
(8,282,718)
(2,169,023)
(12,326,213)
Closing
balance,
as
of
September
30,
2020
...............................................
$
11,344,347
$
9,820
$
3,978,718
$
1,973,708
$
17,306,593
Net
change
in
unrealized
appreciation
(depreciation)
on
investments
still
held
at
September
30,
2020
(b)
........
$
(106,839)
$
3,118
$
(137,106)
$
(63,253)
$
(304,080)
(a)
Included
in
the
related
net
change
in
unrealized
appreciation
(depreciation)
in
the
Statements
of
Operations.
(b)
Any
difference
between
net
change
in
unrealized
appreciation
(depreciation)
and
net
change
in
unrealized
appreciation
(depreciation)
on
investments
still
held
at
September
30,
2020
is
generally
due
to
investments
no
longer
held
or
categorized
as
Level
3
at
period
end.
The
Fund’s
financial
instruments
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
financial
instruments.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
Portfolio
64
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
—
0.8%
(a)
Dryden
XXVIII
Senior
Loan
Fund,
Series
2013-
28A,
Class
A1LR,
(LIBOR
USD
3
Month
+
1.20%),
1.48%,
08/15/30
(b)
..........
USD
5,800
$
5,736,840
Mosaic
Solar
Loan
Trust,
Series
2019-2A,
Class
A,
2.88%,
09/20/40
...........
152
161,178
Progress
Residential
Trust,
Series
2017-SFR1,
Class
A,
2.77%,
08/17/34
...........
974
992,187
Total
Asset-Backed
Securities
—
0.8%
(Cost:
$6,926,367)
..............................
6,890,205
Foreign
Agency
Obligations
—
0.0%
Mexico
—
0.0%
Petroleos
Mexicanos
:
4.25%,
01/15/25
.................
81
75,059
4.50%,
01/23/26
.................
163
144,288
6.95%,
01/28/60
.................
254
196,469
415,816
Total
Foreign
Agency
Obligations
—
0.0%
(Cost:
$401,822)
................................
415,816
Foreign
Government
Obligations
—
4.0%
Chile
—
0.0%
Republic
of
Chile,
2.45%,
01/31/31
.......
200
210,500
China
—
3.1%
People's
Republic
of
China:
1.99%,
04/09/25
.................
CNY
110,150
15,542,209
2.41%,
06/19/25
.................
10,500
1,512,476
2.85%,
06/04/27
.................
7,400
1,067,715
3.29%,
05/23/29
.................
3,840
570,526
2.68%,
05/21/30
.................
57,760
8,184,487
26,877,413
Colombia
—
0.1%
Republic
of
Colombia:
6.25%,
11/26/25
.................
COP
288,100
82,232
3.13%,
04/15/31
.................
USD
390
398,385
7.25%,
10/18/34
.................
COP
810,800
230,681
711,298
Indonesia
—
0.1%
Republic
of
Indonesia:
7.00%,
05/15/27
.................
IDR
2,072,000
141,754
2.85%,
02/14/30
.................
USD
334
351,222
7.00%,
09/15/30
.................
IDR
916,000
61,559
6.63%,
05/15/33
.................
552,000
34,964
7.50%,
06/15/35
.................
1,565,000
105,766
8.38%,
04/15/39
.................
2,068,000
147,804
7.38%,
05/15/48
.................
1,766,000
116,494
959,563
Italy
—
0.3%
Republic
of
Italy,
1.80%,
03/01/41
(a)
.......
EUR
2,160
2,652,628
Mexico
—
0.1%
United
Mexican
States,
3.25%,
04/16/30
...
USD
370
379,620
Panama
—
0.0%
Republic
of
Panama,
3.16%,
01/23/30
.....
274
297,633
Peru
—
0.0%
Republic
of
Peru,
2.78%,
01/23/31
.......
149
161,218
Philippines
—
0.0%
Republic
of
Philippines,
3.75%,
01/14/29
...
200
233,438
Security
Par
(000)
Value
Qatar
—
0.1%
State
of
Qatar,
3.75%,
04/16/30
.........
USD
290
$
335,856
Romania
—
0.0%
Romania
Government
Bond,
3.00%,
02/14/31
(a)
184
188,830
Russia
—
0.1%
Russian
Federation:
8.15%,
02/03/27
.................
RUB
13,055
189,321
6.00%,
10/06/27
.................
7,540
97,567
4.38%,
03/21/29
.................
USD
200
229,800
6.90%,
05/23/29
.................
RUB
15,386
208,640
8.50%,
09/17/31
.................
11,711
177,138
902,466
Saudi
Arabia
—
0.1%
Kingdom
of
Saudi
Arabia,
3.25%,
10/22/30
..
USD
386
418,810
Uruguay
—
0.0%
Oriental
Republic
of
Uruguay,
4.38%,
10/27/27
252
291,060
Total
Foreign
Government
Obligations
—
4.0%
(Cost:
$34,246,468)
..............................
34,620,333
Non-Agency
Mortgage-Backed
Securities
—
2.9%
Commercial
Mortgage-Backed
Securities
—
2.7%
BANK
(c)
:
Series
2020-BN25,
Class
B,
3.04%,
01/15/63
....................
180
192,952
Series
2020-BN26,
Class
B,
2.91%,
03/15/63
....................
2,035
2,144,845
BFLD
Trust,
Series
2020-EYP,
Class
A,
1.35%,
10/15/22
(a)(c)
....................
1,984
1,984,000
BX
Commercial
Mortgage
Trust,
Series
2019-
XL,
Class
D,
1.60%,
10/15/36
(a)(c)
......
3,038
3,018,862
BX
Trust,
Series
2019-OC11,
Class
A,
3.20%,
12/09/41
(a)
.....................
3,168
3,353,421
CFK
Trust,
Series
2020-MF2,
Class
B,
2.79%,
03/15/39
(a)
.....................
810
804,625
Citigroup
Commercial
Mortgage
Trust,
Series
2016-P6,
Class
B,
4.38%,
12/10/49
(c)
...
735
768,735
Commercial
Mortgage
Trust:
Series
2017-COR2,
Class
AM,
3.80%,
09/10/50
....................
297
333,967
Series
2017-PANW,
Class
A,
3.24%,
10/10/29
(a)
...................
4,050
4,277,448
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2020-NET,
Class
A,
2.26%,
08/15/37
(a)
.....................
972
1,002,361
CSAIL
Commercial
Mortgage
Trust,
Series
2019-C17,
Class
C,
3.93%,
09/15/52
...
863
928,426
Hudson
Yards
Mortgage
Trust,
Series
2019-
30HY,
Class
D,
3.56%,
07/10/39
(a)(c)
....
526
541,157
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust,
Series
2020-MKST,
Class
B,
1.20%,
12/15/36
(a)(c)
.............
986
952,894
KKR
Industrial
Portfolio
Trust,
Series
2020-AIP,
Class
A,
1.19%,
03/15/37
(a)(c)
.........
403
403,204
Morgan
Stanley
Capital
I
Trust:
Series
2018-H3,
Class
B,
4.62%,
07/15/51
(c)
533
615,785
Series
2018-SUN,
Class
A,
1.30%,
07/15/35
(a)(c)
..................
1,480
1,432,163
Series
2020-HR8,
Class
AS,
2.30%,
07/15/53
....................
265
274,089
Series
2020-HR8,
Class
B,
2.70%,
07/15/53
318
326,594
23,355,528
BlackRock
U.S.
Government
Bond
Portfolio
Schedules
of
Investments
65
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.2%
(c)
CSAIL
Commercial
Mortgage
Trust:
Series
2018-C14,
Class
XA,
0.73%,
11/15/51
....................
USD
3,490
$
125,294
Series
2019-C16,
Class
XA,
1.73%,
06/15/52
....................
10,268
1,088,711
UBS
Commercial
Mortgage
Trust,
Series
2019-
C17,
Class
XA,
1.64%,
10/15/52
......
7,740
807,363
2,021,368
Total
Non-Agency
Mortgage-Backed
Securities
—
2.9%
(Cost:
$25,148,182)
..............................
25,376,896
U.S.
Government
Sponsored
Agency
Securities
—
55.6%
Agency
Obligations
—
0.6%
Federal
Home
Loan
Bank,
4.00%, 04/10/28
.
4,100
5,075,151
Federal
National
Mortgage
Association
Variable
Rate
Notes,
Series
1996-W1,
Class
AL,
7.25%, 03/25/26
(c)
................
3
3,306
5,078,457
Collateralized
Mortgage
Obligations
—
0.8%
Federal
National
Mortgage
Association:
Series
2011-8,
Class
ZA,
4.00%, 02/25/41
1,857
2,035,951
Series
2014-27,
Class
VC,
4.00%, 05/25/31
3,236
3,486,550
Government
National
Mortgage
Association,
Series
2016-123,
Class
LM,
3.00%, 09/20/46
(d)
................
500
552,210
Government
National
Mortgage
Association
Variable
Rate
Notes,
Series
2014-107,
Class
WX,
6.78%, 07/20/39
(c)
.............
1,069
1,255,097
7,329,808
Commercial
Mortgage-Backed
Securities
—
0.5%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(c)
:
Series
2019-SB60,
Class
A10F,
3.31%, 01/25/29
...............
2,236
2,401,720
Series
2019-SB61,
Class
A10F,
3.17%, 01/25/29
...............
1,703
1,840,989
Government
National
Mortgage
Association,
Series
2019-7,
Class
V,
3.00%, 05/16/35
.
221
244,583
4,487,292
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.7%
Federal
Home
Loan
Mortgage
Corp.,
Series
2015-K718,
Class
X2A,
0.10%, 02/25/48
(a)
183,705
152,659
Government
National
Mortgage
Association
Variable
Rate
Notes:
Series
2005-9,
0.78%, 01/16/45
(c)
......
1,302
26
Series
2005-50,
0.40%, 06/16/45
(c)
.....
1,611
10,692
Series
2006-30,
2.58%, 05/16/46
(c)
.....
718
23,784
Series
2016-22,
0.76%, 11/16/55
(c)
.....
18,593
837,210
Series
2016-45,
0.97%, 02/16/58
(c)
.....
9,794
573,530
Series
2016-92,
0.90%, 04/16/58
(c)
.....
4,930
274,684
Series
2016-113,
(LIBOR
USD
1
Month
+
0.00%),
1.16%, 02/16/58
(b)
........
11,603
862,700
Series
2016-151,
1.06%, 06/16/58
(c)
....
9,195
613,959
Series
2017-30,
0.67%, 08/16/58
(c)
.....
5,502
257,356
Series
2017-44,
0.67%, 04/17/51
(c)
.....
5,897
277,638
Series
2017-53,
0.66%, 11/16/56
(c)
.....
16,631
772,607
Series
2017-61,
0.77%, 05/16/59
(c)
.....
4,430
264,818
Series
2017-64,
0.68%, 11/16/57
(c)
.....
6,137
336,217
Series
2017-72,
0.66%, 04/16/57
(c)
.....
10,517
542,050
5,799,930
Mortgage-Backed
Securities
—
53.0%
Federal
Home
Loan
Mortgage
Corp.:
2.50%, 03/01/30
-
04/01/31
..........
1,674
1,781,505
Security
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
3.00%, 09/01/27
-
12/01/46
..........
USD
4,383
$
4,706,921
3.50%, 12/01/40
-
01/01/48
..........
5,122
5,627,930
4.00%, 08/01/40
-
12/01/45
..........
2,529
2,824,896
4.50%, 02/01/39
-
08/01/48
..........
2,972
3,319,842
5.00%, 04/01/36
-
10/01/41
..........
927
1,066,836
5.50%, 06/01/41
.................
933
1,083,408
Federal
National
Mortgage
Association:
3.00%, 02/01/44
.................
570
605,320
3.50%, 11/01/46
.................
1,770
1,907,324
4.00%, 01/01/41
.................
63
68,552
Government
National
Mortgage
Association:
2.00%, 10/15/50
(e)
................
659
684,639
2.50%, 10/15/50
-
11/15/50
(e)
.........
14,172
14,870,333
3.00%, 02/15/45
-
09/20/50
..........
24,340
25,711,635
3.00%, 10/15/50
-
11/15/50
(e)
.........
9,507
9,953,562
3.50%, 01/15/42
-
10/20/46
..........
19,034
20,422,489
3.50%, 10/15/50
-
11/15/50
(e)
.........
13,160
13,858,421
4.00%, 04/20/39
-
05/20/50
..........
6,749
7,272,396
4.00%, 10/15/50
(e)
................
6,216
6,604,379
4.50%, 12/20/39
-
08/20/50
..........
9,404
10,204,730
4.50%, 10/15/50
(e)
................
620
664,369
5.00%, 12/15/38
-
07/20/41
..........
2,077
2,368,828
7.00%, 06/15/23
-
11/15/23
..........
—
(f)
29
Uniform
Mortgage-Backed
Securities:
2.00%, 10/01/31
-
03/01/32
..........
1,043
1,088,720
2.00%, 10/25/35
-
10/25/50
(e)
.........
30,718
31,795,643
2.50%, 04/01/30
-
10/01/50
..........
10,788
11,519,663
2.50%, 10/25/35
-
11/25/50
(e)
.........
17,232
18,063,452
3.00%, 04/01/28
-
09/01/50
..........
61,250
65,498,150
3.00%, 10/25/35
-
11/25/50
(e)
.........
47,823
50,108,882
3.50%, 11/01/28
-
08/01/50
..........
43,124
47,290,383
3.50%, 10/25/50
(e)
................
733
772,828
4.00%, 09/01/33
-
03/01/50
..........
22,432
24,942,887
4.00%, 10/25/50
-
11/25/50
(e)
.........
30,623
32,678,456
4.50%, 02/01/25
-
01/01/50
..........
28,212
30,725,952
4.50%, 10/25/50
(e)
................
3,576
3,868,226
5.00%, 11/01/32
-
06/01/45
..........
792
898,644
5.00%, 10/25/50
(e)
................
2,157
2,363,516
5.50%, 02/01/35
-
04/01/41
..........
2,850
3,338,433
6.00%, 05/01/33
-
06/01/41
..........
2,606
3,058,710
6.50%, 05/01/40
.................
588
707,449
464,328,338
Total
U.S.
Government
Sponsored
Agency
Securities
—
55.6%
(Cost:
$480,213,389)
.............................
487,023,825
U.S.
Treasury
Obligations
—
55.4%
U.S.
Treasury
Bonds:
4.25%, 05/15/39
-
11/15/40
..........
3,503
5,413,823
4.50%, 08/15/39
.................
1,760
2,786,644
4.38%, 11/15/39
.................
1,760
2,753,712
4.63%, 02/15/40
.................
1,743
2,810,587
3.88%, 08/15/40
.................
1,743
2,583,861
3.13%, 02/15/43
.................
6,770
9,190,011
2.88%, 05/15/43
-
11/15/46
..........
13,280
17,479,458
3.63%, 08/15/43
.................
6,770
9,888,167
3.75%, 11/15/43
.................
6,770
10,075,135
2.50%, 02/15/45
.................
6,264
7,726,252
2.75%, 11/15/47
.................
6,264
8,160,573
3.00%, 02/15/48
.................
12,774
17,400,583
2.25%, 08/15/49
.................
9,205
10,978,760
U.S.
Treasury
Inflation
Linked
Bonds,
0.25%, 02/15/50
.................
3,310
3,912,254
U.S.
Treasury
Inflation
Linked
Notes:
0.63%, 04/15/23
.................
26,350
27,571,012
0.13%, 07/15/30
.................
1,983
2,205,590
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
Portfolio
66
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
U.S.
Treasury
Obligations
(continued)
U.S.
Treasury
Notes:
1.13%, 07/31/21
.................
USD
29,290
$
29,534,847
1.75%, 07/31/21
-
11/15/29
..........
76,690
79,500,293
1.50%, 01/31/22
-
02/15/30
..........
47,070
48,965,465
2.13%, 12/31/22
-
05/15/25
..........
40,360
43,129,121
0.50%, 03/15/23
-
05/31/27
..........
35,575
35,878,719
0.25%, 04/15/23
.................
8,835
8,858,813
2.75%, 05/31/23
.................
13,020
13,921,737
2.25%, 11/15/24
-
08/15/27
..........
27,938
30,763,197
2.00%, 02/15/25
.................
16,270
17,516,307
0.38%, 04/30/25
.................
14,918
15,005,993
0.63%, 03/31/27
.................
5,911
5,988,582
2.88%, 08/15/28
.................
3,910
4,617,618
3.13%, 11/15/28
.................
3,910
4,712,161
1.63%, 08/15/29
.................
6,070
6,610,609
Total
U.S.
Treasury
Obligations
—
55.4%
(Cost:
$455,844,610)
.............................
485,939,884
Total
Long-Term
Investments
—
118.7%
(Cost:
$1,002,780,838)
...........................
1,040,266,959
Shares
Short-Term
Securities
—
3.3%
(g)
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.02%
*
...................
28,606,884
28,606,884
JPMorgan
U.S.
Treasury
Plus
Money
Market
Fund,
Agency
Class,
0.01%
..........
126,183
126,183
Total
Short-Term
Securities
—
3.3%
(Cost:
$28,733,067)
..............................
28,733,067
Total
Options
Purchased
—
0.0%
(Cost:
$1,044,957)
..............................
702,676
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
122.0%
(Cost:
$1,032,558,862
)
...........................
1,069,702,702
Total
Options
Written
—
(0.0)%
(Premium
Received
—
$337,116)
....................
(117,759)
Security
Pa
r
(
000)
Value
TBA
Sale
Commitments
—
(13.4)%
(e)
Mortgage-Backed
Securities
—
(13.4)%
Government
National
Mortgage
Association:
2.50%, 10/15/50
.................
USD
3,800
$
(3,990,742)
3.00%, 10/15/50
.................
6,993
(7,322,026)
3.50%, 10/15/50
.................
7,165
(7,544,055)
4.00%, 10/15/50
.................
710
(754,361)
4.50%, 10/15/50
.................
6,757
(7,302,707)
5.00%, 10/15/50
.................
185
(201,383)
Uniform
Mortgage-Backed
Securities:
2.50%, 10/25/35
-
11/25/50
..........
14,910
(15,637,480)
3.00%, 10/25/35
-
11/25/50
..........
58,949
(61,760,665)
3.50%, 10/25/35
-
10/25/50
..........
5,302
(5,592,675)
4.00%, 10/25/35
-
10/25/50
..........
6,374
(6,794,253)
4.50%, 10/25/50
.................
665
(719,343)
Total
TBA
Sale
Commitments
—
(13.4)%
(Proceeds:
$117,717,770)
.........................
(117,619,690)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
108.6%
(Cost:
$914,503,976
)
.............................
951,965,253
Liabilities
in
Excess
of
Other
Assets
—
(8.6)%
............
(75,588,757)
Net
Assets
—
100.0%
..............................
$
876,376,496
(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)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(e)
Represents
or
includes
a
TBA
transaction.
(f)
Amount
is
less
than
500.
(g)
Annualized
7-day
yield
as
of
period
end.
*
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2020
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/19
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/20
Shares
Held
at
09/30/20
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
1,676,500
$
26,930,384
$
—
$
—
$
—
$
28,606,884
28,606,884
$
88,497
$
3
(a)
Represents
net
amount
purchased
(sold).
BlackRock
U.S.
Government
Bond
Portfolio
Schedules
of
Investments
67
Schedule
of
Investments
(continued)
September
30,
2020
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
U.S.
Treasury
10
Year
Note
...................................................
322
12/21/20
$
44,929
$
(6,726)
U.S.
Treasury
2
Year
Note
....................................................
237
12/31/20
52,368
16,701
9,975
Short
Contracts
Euro-Bund
..............................................................
25
12/08/20
5,115
(7,322)
Canada
10
Year
Bond
......................................................
46
12/18/20
5,244
4,171
U.S.
Treasury
10
Year
Ultra
Note
...............................................
64
12/21/20
10,235
(35,989)
U.S.
Treasury
Long
Bond
....................................................
32
12/21/20
5,641
1,396
U.S.
Treasury
Ultra
Bond
....................................................
103
12/21/20
22,847
27,104
U.S.
Treasury
5
Year
Note
....................................................
116
12/31/20
14,620
(7,603)
(18,243)
$
(8,268)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
USD
90,000
BRL
490,185
Barclays
Bank
plc
10/02/20
$
2,716
USD
40,000
BRL
222,412
Citibank
NA
10/02/20
396
EUR
10,500
USD
12,296
UBS
AG
10/05/20
16
USD
57,013
EUR
48,000
State
Street
Bank
and
Trust
Co.
10/05/20
732
AUD
313,000
USD
222,942
Bank
of
America
NA
10/06/20
1,246
USD
229,827
AUD
313,000
BNP
Paribas
SA
10/06/20
5,639
USD
420,000
BRL
2,259,973
BNP
Paribas
SA
11/03/20
17,921
USD
150,000
BRL
806,302
UBS
AG
11/03/20
6,548
USD
12,330
EUR
10,500
Goldman
Sachs
International
11/04/20
11
USD
620,000
TRY
4,785,160
JPMorgan
Chase
Bank
NA
11/18/20
8,336
USD
338,228
COP
1,254,300,659
Barclays
Bank
plc
12/04/20
11,582
USD
116,354
MXN
2,495,163
Deutsche
Bank
AG
12/04/20
4,339
USD
1,125,723
RUB
85,213,252
Citibank
NA
12/04/20
35,528
CLP
78,566,000
USD
100,000
Citibank
NA
12/16/20
155
JPY
9,543,465
USD
90,000
Bank
of
America
NA
12/16/20
586
JPY
11,591,803
USD
110,000
BNP
Paribas
SA
12/16/20
29
KRW
82,916,820
USD
70,000
UBS
AG
12/16/20
1,120
TWD
2,583,603
USD
90,000
BNP
Paribas
SA
12/16/20
254
USD
131,095
AUD
180,000
ANZ
Banking
Group
Ltd.
12/16/20
2,143
USD
110,000
BRL
591,217
Morgan
Stanley
&
Co.
International
plc
12/16/20
4,952
USD
90,000
CLP
68,888,700
Citibank
NA
12/16/20
2,181
USD
80,000
CLP
61,561,920
HSBC
Bank
plc
12/16/20
1,521
USD
90,000
COP
335,714,400
Barclays
Bank
plc
12/16/20
2,629
USD
226,154
EUR
190,000
Bank
of
America
NA
12/16/20
2,996
USD
4,543,185
EUR
3,830,000
Morgan
Stanley
&
Co.
International
plc
12/16/20
44,793
USD
130,000
KRW
151,376,810
UBS
AG
12/16/20
160
USD
260,000
MXN
5,661,961
Goldman
Sachs
International
12/16/20
6,171
USD
230,000
MXN
4,897,717
State
Street
Bank
and
Trust
Co.
12/16/20
10,432
USD
130,000
PLN
487,033
Citibank
NA
12/16/20
3,974
USD
310,000
RUB
23,743,023
Citibank
NA
12/16/20
6,757
USD
110,000
RUB
8,603,007
Goldman
Sachs
International
12/16/20
124
USD
440,000
ZAR
7,393,366
Goldman
Sachs
International
12/17/20
2,672
ZAR
1,868,835
USD
110,000
State
Street
Bank
and
Trust
Co.
12/17/20
544
189,203
BRL
217,860
USD
40,000
Barclays
Bank
plc
10/02/20
(1,208)
BRL
484,830
USD
90,000
BNP
Paribas
SA
10/02/20
(3,668)
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
Portfolio
68
Schedule
of
Investments
(continued)
September
30,
2020
Forward
Foreign
Currency
Exchange
Contracts
(continued)
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
EUR
10,500
USD
12,323
Goldman
Sachs
International
10/05/20
$
(11)
KZT
9,564,849
USD
22,540
Citibank
NA
10/23/20
(596)
BRL
2,423,696
USD
440,000
Citibank
NA
11/03/20
(8,792)
BRL
706,563
USD
130,000
Goldman
Sachs
International
11/03/20
(4,293)
USD
222,957
AUD
313,000
Bank
of
America
NA
11/04/20
(1,246)
USD
12,303
EUR
10,500
UBS
AG
11/04/20
(16)
IDR
2,154,000,000
USD
145,364
BNP
Paribas
SA
12/04/20
(1,446)
IDR
2,154,000,000
USD
145,836
Citibank
NA
12/04/20
(1,919)
RUB
2,646,905
USD
34,408
Bank
of
America
NA
12/04/20
(545)
RUB
23,201,656
USD
301,793
Credit
Suisse
International
12/04/20
(4,959)
RUB
5,285,856
USD
68,952
HSBC
Bank
plc
12/04/20
(1,327)
USD
434,535
CNY
2,988,000
Barclays
Bank
plc
12/04/20
(3,929)
USD
2,797,055
CNY
19,225,000
Citibank
NA
12/04/20
(24,049)
USD
89,956
CNY
618,000
HSBC
Bank
plc
12/04/20
(730)
USD
836,344
IDR
12,660,581,507
Standard
Chartered
Bank
12/04/20
(9,560)
BRL
593,885
USD
110,000
BNP
Paribas
SA
12/16/20
(4,478)
COP
336,875,400
USD
90,000
Citibank
NA
12/16/20
(2,327)
EUR
300,000
USD
355,046
Bank
of
America
NA
12/16/20
(2,692)
KRW
69,741,810
USD
60,000
UBS
AG
12/16/20
(180)
MXN
6,418,362
USD
300,000
Citibank
NA
12/16/20
(12,261)
MXN
14,274,106
USD
660,000
Goldman
Sachs
International
12/16/20
(20,083)
PLN
488,724
USD
130,000
Goldman
Sachs
International
12/16/20
(3,536)
RUB
16,756,498
USD
220,000
BNP
Paribas
SA
12/16/20
(5,988)
RUB
8,371,990
USD
110,000
Citibank
NA
12/16/20
(3,074)
RUB
9,893,353
USD
130,000
Goldman
Sachs
International
12/16/20
(3,644)
TRY
2,248,080
USD
290,000
JPMorgan
Chase
Bank
NA
12/16/20
(5,439)
USD
12,271,538
CNY
84,370,504
Standard
Chartered
Bank
12/16/20
(99,244)
USD
128,205
EUR
110,000
JPMorgan
Chase
Bank
NA
12/16/20
(991)
USD
170,000
MXN
3,827,280
Citibank
NA
12/16/20
(1,579)
USD
190,000
MXN
4,274,719
Morgan
Stanley
&
Co.
International
plc
12/16/20
(1,638)
USD
40,000
RUB
3,158,121
Goldman
Sachs
International
12/16/20
(335)
USD
90,000
TWD
2,606,737
UBS
AG
12/16/20
(1,062)
ZAR
1,853,108
USD
110,000
Bank
of
America
NA
12/17/20
(386)
(237,231)
OTC
Barrier
Options
Purchased
Description
Type
of
Option
Counterparty
Expiration  
Date
Exercise
Price
Barrier
Price/Range
Notional
Amount
(000)
Value
Call
USD
Currency
...............
Down
and
In
BNP
Paribas
SA
11/02/20
ZAR
16.58
ZAR
15.68
USD
1,920
$
611
USD
Currency
...............
Down
and
In
Bank
of
America
NA
11/02/20
ZAR
17.03
ZAR
16.13
USD
2,180
2,571
USD
Currency
...............
Down
and
In
Morgan
Stanley
&
Co.
International
plc
11/02/20
MXN
21.40
MXN
20.40
USD
4,100
740
$
3,922
$
–
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
90-day
Eurodollar
December
2020
Futures
..........
2,668
12/11/20
USD
99.63
USD
667,000
$
133,400
90-day
Eurodollar
June
2021
Futures
..............
996
06/11/21
USD
99.25
USD
249,000
186,750
$
320,150
BlackRock
U.S.
Government
Bond
Portfolio
Schedules
of
Investments
69
Schedule
of
Investments
(continued)
September
30,
2020
OTC
Currency
Options
Purchased
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
AUD
Currency
...........................
Morgan
Stanley
&
Co.
International
plc
10/14/20
JPY
72.40
AUD
5,052
$
2,399
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
Put
10-Year
Interest
Rate
Swap
(a)
1.05%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
02/22/22
1.05
%
USD
17,800
$
376,205
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Call
U.S.
Treasury
5
Year
Note
.......................
300
10/23/20
USD
126.00
USD
30,000
$
(44,531)
Put
U.S.
Treasury
5
Year
Note
.......................
300
10/23/20
USD
126.00
USD
30,000
(35,156)
90-day
Eurodollar
June
2021
Futures
...............
996
06/11/21
USD
98.75
USD
249,000
(37,350)
(72,506)
$
(117,037)
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
Call
10-Year
Interest
Rate
Swap
(a)
0.40%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
10/28/20
0.40
%
USD
9,200
$
(722)
(a)
Forward
settling
swaption.
Centrally
Cleared
Interest
Rate
Swap
s
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)
1.37%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
11/30/20
USD
10,970
$
(68,223)
$
—
$
(68,223)
28
day
MXIBTIIE
Monthly
4.51%
Monthly
10/01/20
(a)
09/29/22
MXN
30,163
—
—
—
1
day
Fed
Funds
At
Termination
0.04%
At
Termination
09/19/22
(a)
09/19/23
USD
42,911
(8,964)
—
(8,964)
1
day
Fed
Funds
At
Termination
0.05%
At
Termination
09/19/22
(a)
09/19/23
USD
85,822
(6,893)
—
(6,893)
1
day
Fed
Funds
At
Termination
0.04%
At
Termination
09/23/22
(a)
09/23/23
USD
42,904
(8,350)
—
(8,350)
28
day
MXIBTIIE
Monthly
8.39%
Monthly
N/A
01/18/24
MXN
6,196
32,588
—
32,588
28
day
MXIBTIIE
Monthly
6.67%
Monthly
N/A
08/12/24
MXN
5,385
16,079
—
16,079
28
day
MXIBTIIE
Monthly
6.72%
Monthly
N/A
08/13/24
MXN
4,634
14,172
—
14,172
28
day
MXIBTIIE
Monthly
6.59%
Monthly
N/A
11/08/24
MXN
3,373
9,852
—
9,852
3
month
BA
Semi-Annual
0.75%
Semi-Annual
N/A
05/26/25
CAD
5,960
6,883
—
6,883
3
month
BA
Semi-Annual
0.85%
Semi-Annual
N/A
06/04/25
CAD
2,977
14,205
(20)
14,225
3
month
BA
Semi-Annual
0.85%
Semi-Annual
N/A
06/04/25
CAD
2,978
13,987
—
13,987
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
Portfolio
70
Schedule
of
Investments
(continued)
September
30,
2020
Centrally
Cleared
Interest
Rate
Swaps
(continued)
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)
3
month
BA
Semi-Annual
0.70%
Semi-Annual
N/A
08/06/25
CAD
11,895
$
(16,256)
$
—
$
(16,256)
0.39%
At
Termination
1
day
Fed
Funds
At
Termination
09/18/24
(a)
09/18/25
USD
85,822
(4,015)
—
(4,015)
0.38%
At
Termination
1
day
Fed
Funds
At
Termination
09/18/24
(a)
09/18/25
USD
42,911
4,343
—
4,343
0.39%
At
Termination
1
day
Fed
Funds
At
Termination
09/23/24
(a)
09/23/25
USD
42,904
(550)
—
(550)
2.85%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
12/21/28
USD
2,600
(496,780)
—
(496,780)
1.61%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
10/01/29
USD
4,700
(432,249)
—
(432,249)
$
(930,171)
$
(20)
$
(930,151)
(a)
Forward
swap.
Centrally
Cleared
Inflation
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
0.72%
At
Termination
1
month
HICPXT
At
Termination
09/15/25
EUR
3,015
$
(21,978)
$
—
$
(21,978)
0.73%
At
Termination
1
month
HICPXT
At
Termination
09/15/25
EUR
3,015
(23,853)
—
(23,853)
1
month
HICPXT
At
Termination
0.96%
At
Termination
09/15/30
EUR
3,015
35,907
—
35,907
1
month
HICPXT
At
Termination
0.98%
At
Termination
09/15/30
EUR
3,015
42,061
—
42,061
$
32,137
$
—
$
32,137
OTC
Interest
Rate
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Rate
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1
day
BZDIOVER
At
Termination
3.10%
At
Termination
Citibank
NA
01/03/22
BRL
4,592
$
934
$
—
$
934
1
day
BZDIOVER
At
Termination
4.52%
At
Termination
BNP
Paribas
SA
01/02/23
BRL
5,039
1,353
—
1,353
1
day
BZDIOVER
At
Termination
5.13%
At
Termination
JPMorgan
Chase
Bank
NA
01/02/23
BRL
1,401
6,271
—
6,271
$
8,558
$
—
$
8,558
OTC
Inflation
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid  (Received)
Unrealized
Appreciation
(Depreciation)
1
month
USCPI
At
Termination
(0.96)%
At
Termination
Citibank
NA
04/15/21
USD
6,094
$
(102,751)
$
—
$
(102,751)
1
month
USCPI
At
Termination
(1.00)%
At
Termination
Citibank
NA
04/15/21
USD
6,094
(104,915)
—
(104,915)
1
month
USCPI
At
Termination
(1.00)%
At
Termination
Citibank
NA
04/15/21
USD
6,094
(104,915)
—
(104,915)
1
month
USCPI
At
Termination
(1.02)%
At
Termination
Citibank
NA
04/15/21
USD
6,094
(106,032)
—
(106,032)
0.04%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
6,094
125,453
—
125,453
0.02%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
6,094
128,021
—
128,021
0.01%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
6,094
128,954
—
128,954
BlackRock
U.S.
Government
Bond
Portfolio
Schedules
of
Investments
71
Schedule
of
Investments
(continued)
September
30,
2020
i
OTC
Inflation
Swaps
(continued)
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid  (Received)
Unrealized
Appreciation
(Depreciation)
0.00%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
6,094
$
130,355
$
—
$
130,355
1
month
USCPI
At
Termination
(0.05)%
At
Termination
Citibank
NA
04/15/22
USD
9,140
(204,285)
—
(204,285)
0.62%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/24
USD
9,140
302,688
—
302,688
–
$
–
$
–
$
192,573
$
—
$
192,573
–
–
–
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
0.01
%
1
day
Fed
Funds
......................................
1
day
Fed
Funds
0.09
1
month
HICPXT
......................................
Harmonized
Index
Of
Consumer
Prices
Excluding
Tobacco
0.00
1
month
USCPI
.......................................
U.S.
Consumer
Price
Index
2.06
28
day
MXIBTIIE
......................................
Mexico
Interbank
TIIE
28-Day
4.55
3
month
BA
..........................................
Canadian
Bankers
Acceptances
0.51
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.23
Balances
Reported
in
the
Statements
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)
...........................................
$
—
$
(20)
$
190,097
$
(1,088,111)
$
—
OTC
Swaps
.....................................................
—
—
824,029
(622,898)
—
Options
Written
...................................................
N/A
N/A
219,357
—
(117,759)
(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
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
Portfolio
72
Schedule
of
Investments
(continued)
September
30,
2020
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
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)
.....
$
—
$
—
$
—
$
—
$
49,372
$
—
$
49,372
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
189,203
—
—
189,203
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
—
6,321
696,355
—
702,676
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
112,129
77,968
190,097
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
—
—
—
8,558
815,471
824,029
$
—
$
—
$
—
$
195,524
$
866,414
$
893,439
$
1,955,377
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
57,640
—
57,640
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
237,231
—
—
237,231
Options
written
(b)
Options
written
at
value
.....................
—
—
—
—
117,759
—
117,759
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
1,042,280
45,831
1,088,111
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
—
—
—
—
622,898
622,898
$
—
$
—
$
—
$
237,231
$
1,217,679
$
668,729
$
2,123,639
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
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
forward
settling
swaptions.
(c)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
For
the
year
ended
September
30,
2020,
the
effect
of
derivative
financial
instruments
in
the
Statements
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
.......................
$
—
$
—
$
—
$
—
$
6,565,396
$
—
$
6,565,396
Forward
foreign
currency
exchange
contracts
....
—
—
—
128,973
—
—
128,973
Options
purchased
(a)
....................
—
—
—
(140,274)
(943,142)
—
(1,083,416)
Options
written
........................
—
—
—
—
1,298,701
—
1,298,701
Swaps
..............................
—
22,148
—
—
(10,406,939)
127,392
(10,257,399)
$
—
$
22,148
$
—
$
(11,301)
$
(3,485,984)
$
127,392
$
(3,347,745)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
(164,427)
—
(164,427)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(408,702)
—
—
(408,702)
Options
purchased
(b)
....................
—
—
—
(50,903)
(59,474)
—
(110,377)
Options
written
........................
—
—
—
—
248,139
—
248,139
Swaps
..............................
—
(1,815)
—
—
5,082,255
217,630
5,298,070
$
—
$
(1,815)
$
—
$
(459,605)
$
5,106,493
$
217,630
$
4,862,703
(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.
BlackRock
U.S.
Government
Bond
Portfolio
Schedules
of
Investments
73
Schedule
of
Investments
(continued)
September
30,
2020
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
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts:
Average
notional
value
of
contracts
—
long
..................................................................................
$
145,009,649
Average
notional
value
of
contracts
—
short
.................................................................................
31,472,893
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
21,992,596
Average
amounts
sold
—
in
USD
........................................................................................
8,938,944
Options:
Average
value
of
option
contracts
purchased
................................................................................
88,581
Average
value
of
option
contracts
written
...................................................................................
387,121
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
43,647,000
Average
notional
value
of
swaption
contracts
written
...........................................................................
48,855,500
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
541,875
Interest
rate
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
120,841,408
Average
notional
value
—
receives
fixed
rate
................................................................................
101,472,426
Inflation
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
18,524,618
Average
notional
value
—
receives
fixed
rate
................................................................................
18,524,618
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
324,596
$
89,665
Forward
foreign
currency
exchange
contracts
.................................................................
189,203
237,231
Options
(a)(b)
........................................................................................
702,676
117,759
Swaps
—
Centrally
cleared
.............................................................................
16,524
—
Swaps
—
OTC
(c)
....................................................................................
824,029
622,898
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
2,057,028
$
1,067,553
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(661,270)
(206,702)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
1,395,758
$
860,851
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
of
Assets
and
Liabilities
and
reported
in
the
Schedule
of
Investments.
(b)
Includes
forward
settling
swaptions.
(c)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/received
in
the
Statements
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
(b)
Net
Amount
of
Derivative
Assets
(c)
ANZ
Banking
Group
Ltd.
...........................
$
2,143
$
—
$
—
$
—
$
2,143
Bank
of
America
NA
..............................
7,399
(4,869)
—
—
2,530
Barclays
Bank
plc
................................
393,132
(5,859)
—
(387,273)
—
BNP
Paribas
SA
.................................
25,807
(15,580)
—
—
10,227
Citibank
NA
....................................
865,396
(677,495)
—
(187,901)
—
Deutsche
Bank
AG
...............................
4,339
—
—
—
4,339
Goldman
Sachs
International
........................
8,978
(8,978)
—
—
—
HSBC
Bank
plc
..................................
1,521
(1,521)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
14,607
(6,430)
—
(8,177)
—
Morgan
Stanley
&
Co.
International
plc
..................
52,884
(1,638)
—
—
51,246
State
Street
Bank
and
Trust
Co.
......................
11,708
—
—
—
11,708
UBS
AG
......................................
7,844
(1,258)
—
—
6,586
$
1,395,758
$
(723,628)
$
—
$
(583,351)
$
88,779
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
U.S.
Government
Bond
Portfolio
74
Schedule
of
Investments
(continued)
September
30,
2020
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
(d)
Bank
of
America
NA
..............................
$
4,869
$
(4,869)
$
—
$
—
$
—
Barclays
Bank
plc
................................
5,859
(5,859)
—
—
—
BNP
Paribas
SA
.................................
15,580
(15,580)
—
—
—
Citibank
NA
....................................
677,495
(677,495)
—
—
—
Credit
Suisse
International
..........................
4,959
—
—
—
4,959
Goldman
Sachs
International
........................
31,902
(8,978)
—
—
22,924
HSBC
Bank
plc
..................................
2,057
(1,521)
—
—
536
JPMorgan
Chase
Bank
NA
..........................
6,430
(6,430)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
1,638
(1,638)
—
—
—
Standard
Chartered
Bank
...........................
108,804
—
—
—
108,804
UBS
AG
......................................
1,258
(1,258)
—
—
—
$
860,851
$
(723,628)
$
—
$
—
$
137,223
(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)
Excess
of
collateral
received
from
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(d)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
BlackRock
U.S.
Government
Bond
Portfolio
Schedules
of
Investments
75
Schedule
of
Investments
(continued)
September
30,
2020
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
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.
The
breakdown
of
the
Fund's
investments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
...................................
$
—
$
6,890,205
$
—
$
6,890,205
Foreign
Agency
Obligations
.................................
—
415,816
—
415,816
Foreign
Government
Obligations
..............................
—
34,620,333
—
34,620,333
Non-Agency
Mortgage-Backed
Securities
........................
—
25,376,896
—
25,376,896
U.S.
Government
Sponsored
Agency
Securities
....................
—
486,471,615
552,210
487,023,825
U.S.
Treasury
Obligations
...................................
—
485,939,884
—
485,939,884
Short-Term
Securities
.......................................
28,733,067
—
—
28,733,067
Options
Purchased:
Foreign
currency
exchange
contracts
...........................
—
6,321
—
6,321
Interest
rate
contracts
......................................
320,150
376,205
—
696,355
Liabilities:
Investments:
TBA
Sale
Commitments
....................................
—
(117,619,690)
—
(117,619,690)
$
29,053,217
$
922,477,585
$
552,210
$
952,083,012
Derivative
Financial
Instruments
(a)
Assets:
Foreign
currency
exchange
contracts
............................
$
—
$
189,203
$
—
$
189,203
Interest
rate
contracts
.......................................
49,372
120,687
—
170,059
Other
contracts
...........................................
—
893,439
—
893,439
Liabilities:
Foreign
currency
exchange
contracts
............................
—
(237,231)
—
(237,231)
Interest
rate
contracts
.......................................
(174,677)
(1,043,002)
—
(1,217,679)
Other
contracts
...........................................
—
(668,729)
—
(668,729)
$
(125,305)
$
(745,633)
$
—
$
(870,938)
(a)
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.
Statements
of
Assets
and
Liabilities

September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
76
BlackRock
GNMA
Portfolio
BlackRock
Income
Fund
BlackRock
U.S.
Government
Bond
Portfolio
ASSETS
Investments
at
value
—
unaffiliated
(a)
..........................................................
$
1,007,141,240‌
$
1,422,044,702‌
$
1,041,095,818‌
Investments
at
value
—
affiliated
(b)
............................................................
3,225,583‌
176,371,801‌
28,606,884‌
Cash  
...............................................................................
10,493‌
220,110‌
147,068‌
Cash
pledged:
Collateral
—
OTC
derivatives
..............................................................
—‌
5,950,000‌
—‌
Collateral
—
TBA
commitments
.............................................................
499,000‌
—‌
—‌
Futures
contracts
......................................................................
928,310‌
2,106,000‌
1,558,650‌
Centrally
cleared
swaps
..................................................................
351,000‌
1,033,000‌
918,560‌
Foreign
currency
at
value
(c)
.................................................................
—‌
839,042‌
1,953,832‌
Receivables:
–‌
–‌
–‌
Investments
sold
......................................................................
119,562,394‌
7,410,578‌
101,080,427‌
TBA
sale
commitments
..................................................................
213,450,077‌
—‌
117,717,770‌
Capital
shares
sold
.....................................................................
2,735,821‌
4,751,782‌
1,849,802‌
Dividends
—
affiliated
...................................................................
147‌
5,204‌
1,025‌
Dividends
—
unaffiliated
.................................................................
—‌
14,694‌
—‌
Interest
—
unaffiliated
...................................................................
2,680,528‌
16,004,254‌
3,566,100‌
From
the
Manager
.....................................................................
23,053‌
10,366‌
44,707‌
Variation
margin
on
futures
contracts
.........................................................
170,580‌
157,336‌
324,596‌
Variation
margin
on
centrally
cleared
swaps
....................................................
—‌
55,178‌
16,524‌
Swap
premiums
paid
.....................................................................
—‌
61,461‌
—‌
Unrealized
appreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
—‌
1,388,253‌
189,203‌
OTC
swaps
..........................................................................
—‌
308‌
824,029‌
Unfunded
floating
rate
loan
interests
.........................................................
—‌
397‌
—‌
Prepaid
expenses
.......................................................................
74,515‌
95,607‌
165,374‌
Total
assets
...........................................................................
1,350,852,741‌
1,638,520,073‌
1,300,060,369‌
LIABILITIES
Cash
received
as
collateral
for
OTC
derivatives
...................................................
—‌
60,000‌
690,000‌
Options
written
at
value
(d)
..................................................................
53,604‌
42,518‌
117,759‌
TBA
sale
commitments
at
value
(e)
............................................................
213,509,254‌
—‌
117,619,690‌
Reverse
repurchase
agreements
at
value
.......................................................
18,251,805‌
—‌
—‌
Payables:
–‌
–‌
–‌
Investments
purchased
..................................................................
493,963,590‌
29,843,528‌
300,403,382‌
Swaps  
............................................................................
—‌
41,932‌
—‌
Accounting
services
fees
.................................................................
38,409‌
141,781‌
55,402‌
Administration
fees
.....................................................................
20,888‌
55,208‌
29,611‌
Capital
shares
redeemed
.................................................................
3,302,993‌
4,901,376‌
2,510,219‌
Custodian
fees
........................................................................
25,192‌
74,817‌
33,544‌
Income
dividend
distributions
..............................................................
292,423‌
682,719‌
504,954‌
Investment
advisory
fees
.................................................................
124,681‌
604,236‌
212,266‌
Trustees'
and
Officer's
fees
...............................................................
601‌
1,709‌
662‌
Other
affiliate
fees
.....................................................................
6,442‌
1,914‌
7,360‌
Printing
and
postage
fees
................................................................
13,154‌
25,905‌
111‌
Professional
fees
......................................................................
73,006‌
116,562‌
59,372‌
Registration
fees
......................................................................
9,980‌
45,481‌
10,036‌
Service
and
distribution
fees
...............................................................
63,300‌
55,892‌
113,851‌
Transfer
agent
fees
....................................................................
163,477‌
396,766‌
359,997‌
Other
accrued
expenses
.................................................................
13,570‌
43,823‌
5,863‌
Variation
margin
on
futures
contracts
.........................................................
40,629‌
299,102‌
89,665‌
Variation
margin
on
centrally
cleared
swaps
....................................................
88‌
—‌
—‌
Swap
premiums
received
..................................................................
—‌
127,098‌
—‌
Unrealized
depreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
—‌
30,388‌
237,231‌
OTC
swaps
..........................................................................
—‌
162,790‌
622,898‌
Unfunded
floating
rate
loan
interests
.........................................................
—‌
1,804‌
—‌
Total
liabilities
..........................................................................
729,967,086‌
37,757,349‌
423,683,873‌
NET
ASSETS
..........................................................................
$
620,885,655‌
$
1,600,762,724‌
$
876,376,496‌
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2020
77
Financial
Statements
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
BlackRock
Income
Fund
BlackRock
U.S.
Government
Bond
Portfolio
NET
ASSETS
CONSIST
OF
Paid-in
capital
..........................................................................
$
685,061,215‌
$
1,606,398,282‌
$
881,565,536‌
Accumulated
loss
.......................................................................
(64,175,560‌)
(5,635,558‌)
(5,189,040‌)
NET
ASSETS
..........................................................................
$
620,885,655‌
$
1,600,762,724‌
$
876,376,496‌
(a)
  Investments
at
cost
—
unaffiliated
...........................................................
$
990,972,763‌
$
1,405,563,190‌
$
1,003,951,978‌
(b)
  Investments
at
cost
—
affiliated
............................................................
$
3,225,583‌
$
177,772,536‌
$
28,606,884‌
(c)
  Foreign
currency
at
cost
.................................................................
$
—‌
$
835,431‌
$
1,827,327‌
(d)
  Premiums
received
....................................................................
$
170,424‌
$
31,880‌
$
337,116‌
(e)
  Proceeds
from
TBA
sale
commitments
.......................................................
$
213,450,077‌
$
—‌
$
117,717,770‌
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
78
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
BlackRock
Income
Fund
BlackRock
U.S.
Government
Bond
Portfolio
NET
ASSET
VALUE
Institutional
Net
assets
...........................................................................
$
356,671,451‌
$
1,300,682,524‌
$
412,161,196‌
Share
outstanding
(f)
....................................................................
37,538,384‌
127,210,571‌
37,082,372‌
Net
asset
value
.......................................................................
$
9.50‌
$
10.22‌
$
11.11‌
Service
Net
assets
...........................................................................
$
4,168,118‌
$
—‌
$
1,113,249‌
Share
outstanding
(f)
....................................................................
439,376‌
—‌
100,235‌
Net
asset
value
.......................................................................
$
9.49‌
$
—‌
$
11.11‌
Investor
A
Net
assets
...........................................................................
$
161,035,089‌
$
142,602,472‌
$
414,711,372‌
Share
outstanding
(f)
....................................................................
16,877,329‌
13,948,334‌
37,229,977‌
Net
asset
value
.......................................................................
$
9.54‌
$
10.22‌
$
11.14‌
Investor
C
Net
assets
...........................................................................
$
31,335,901‌
$
30,905,056‌
$
25,922,330‌
Share
outstanding
(f)
....................................................................
3,298,683‌
3,021,405‌
2,330,950‌
Net
asset
value
.......................................................................
$
9.50‌
$
10.23‌
$
11.12‌
Class
K
Net
assets
...........................................................................
$
67,675,096‌
$
126,572,672‌
$
17,335,084‌
Share
outstanding
(f)
....................................................................
7,145,840‌
12,380,229‌
1,559,619‌
Net
asset
value
.......................................................................
$
9.47‌
$
10.22‌
$
11.11‌
Class
R
Net
assets
...........................................................................
$
—‌
$
—‌
$
5,133,265‌
Share
outstanding
(f)
....................................................................
—‌
—‌
460,859‌
Net
asset
value
.......................................................................
$
—‌
$
—‌
$
11.14‌
(f)
Unlimited
number
of
shares
authorized,
$0.001
par
value.
Statements
of
Operations

Year
Ended
September
30,
2020
79
Financial
Statements
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
BlackRock
Income
Fund
BlackRock
U.S.
Government
Bond
Portfolio
INVESTMENT
INCOME
–
–
–
Dividends
—
affiliated
...................................................................
$
33,708‌
$
2,749,225‌
$
88,497‌
Dividends
—
unaffiliated
.................................................................
2,456‌
1,105,602‌
1,082‌
Interest
—
unaffiliated
...................................................................
14,798,421‌
62,490,751‌
18,031,277‌
Foreign
taxes
withheld
..................................................................
—‌
(653‌)
(14,260‌)
Total
investment
income
...................................................................
14,834,585‌
66,344,925‌
18,106,596‌
EXPENSES
Investment
advisory
....................................................................
1,820,878‌
6,501,895‌
2,946,887‌
Service
and
distribution
—
class
specific
......................................................
711,008‌
618,979‌
1,318,714‌
Transfer
agent
—
class
specific
............................................................
560,716‌
1,235,404‌
1,054,824‌
Administration
.......................................................................
226,677‌
537,659‌
314,746‌
Registration
.........................................................................
111,431‌
265,532‌
142,848‌
Administration
—
class
specific
............................................................
107,104‌
266,733‌
151,112‌
Professional
.........................................................................
95,777‌
187,231‌
76,929‌
Accounting
services
....................................................................
77,603‌
295,378‌
106,323‌
Custodian
...........................................................................
54,177‌
119,018‌
76,306‌
Printing
and
postage
...................................................................
38,622‌
33,821‌
39,543‌
Trustees
and
Officer
....................................................................
4,459‌
16,237‌
7,279‌
Miscellaneous
........................................................................
28,440‌
142,265‌
27,411‌
Total
expenses
excluding
interest
expense
.......................................................
3,836,892‌
10,220,152‌
6,262,922‌
Interest
expense
........................................................................
329,662‌
22,735‌
840,282‌
Total
expenses
.........................................................................
4,166,554‌
10,242,887‌
7,103,204‌
Less:
–‌
–‌
–‌
Fees
waived
and/or
reimbursed
by
the
Manager
.................................................
(477,507‌)
(544,238‌)
(712,286‌)
Transfer
agent
fees
waived
and/or
reimbursed
—
class
specific
.......................................
(324,797‌)
(576,558‌)
(692,945‌)
Administration
fees
waived
—
class
specific
....................................................
(107,104‌)
(263,300‌)
(150,698‌)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
3,257,146‌
8,858,791‌
5,547,275‌
Net
investment
income
....................................................................
11,577,439‌
57,486,134‌
12,559,321‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
7,411,311‌
$
(13,696,754‌)
$
33,842,426‌
Net
realized
gain
(loss)
from:
Investments
—
affiliated
...............................................................
$
—‌
$
(1,590,550‌)
$
—‌
Investments
—
unaffiliated
.............................................................
8,350,469‌
(20,876,803‌)
11,647,251‌
Capital
gain
distributions
from
underlying
funds
—
affiliated
........................................
6‌
303‌
3‌
Forward
foreign
currency
exchange
contracts
.................................................
—‌
(3,056,697‌)
128,973‌
Foreign
currency
transactions
...........................................................
—‌
(2,725,478‌)
(161,296‌)
Futures
contracts
....................................................................
(5,483,827‌)
16,173,529‌
6,565,396‌
Options
written
.....................................................................
731,924‌
730,371‌
1,298,701‌
Payment
by
affiliate
..................................................................
—‌
6,184‌
—‌
Swaps  
..........................................................................
(4,032,926‌)
(9,204,553‌)
(10,257,399‌)
Unfunded
floating
rate
loan
interests
.......................................................
—‌
(964‌)
—‌
(434,354‌)
(20,544,658‌)
9,221,629‌
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
affiliated
...............................................................
—‌
(1,672,890‌)
—‌
Investments
—
unaffiliated
.............................................................
6,558,246‌
8,978,973‌
19,524,573‌
Forward
foreign
currency
exchange
contracts
.................................................
—‌
780,244‌
(408,702‌)
Foreign
currency
translations
............................................................
—‌
28,151‌
123,144‌
Futures
contracts
....................................................................
(142,568‌)
449,871‌
(164,427‌)
Options
written
.....................................................................
138,453‌
(758,863‌)
248,139‌
Swaps  
..........................................................................
1,291,534‌
(955,701‌)
5,298,070‌
Unfunded
floating
rate
loan
interests
.......................................................
—‌
(1,881‌)
—‌
7,845,665‌
6,847,904‌
24,620,797‌
Net
realized
and
unrealized
gain
(loss)
.........................................................
7,411,311‌
(13,696,754‌)
33,842,426‌
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
....................................
$
18,988,750‌
$
43,789,380‌
$
46,401,747‌
Suppression
logic
for
footnote
Statements
of
Changes
in
Net
Assets

2020
BlackRock
Annual
Report
to
Shareholders
80
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
BlackRock
Income
Fund
Year
Ended
September
30,
Year
Ended
September
30,
2020
2019
2020
2019
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
11,577,439‌
$
12,682,621‌
$
57,486,134‌
$
37,646,638‌
Net
realized
gain
(loss)
....................................................
(434,354‌)
(3,470,345‌)
(20,544,658‌)
11,206,283‌
Net
change
in
unrealized
appreciation
(depreciation)
................................
7,845,665‌
23,265,410‌
6,847,904‌
12,468,193‌
Net
increase
in
net
assets
resulting
from
operations
...................................
18,988,750‌
32,477,686‌
43,789,380‌
61,321,114‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
From
net
investment
income
and
net
realized
gain:
  Institutional
...........................................................
(9,664,123‌)
(9,407,704‌)
(51,450,923‌)
(33,063,857‌)
  Service
..............................................................
(165,522‌)
(252,843‌)
—‌
—‌
  Investor
A
............................................................
(4,476,553‌)
(4,412,535‌)
(5,326,152‌)
(3,996,498‌)
  Investor
C
............................................................
(803,210‌)
(950,086‌)
(1,235,281‌)
(1,240,495‌)
  Class
K
..............................................................
(2,225,573‌)
(1,314,642‌)
(4,951,889‌)
(2,349,783‌)
From
return
of
capital:
–
–
–
–
  Institutional
...........................................................
—‌
(35,973‌)
—‌
—‌
  Service
..............................................................
—‌
(967‌)
—‌
—‌
  Investor
A
............................................................
—‌
(16,873‌)
—‌
—‌
  Investor
C
............................................................
—‌
(3,633‌)
—‌
—‌
  Class
K
..............................................................
—‌
(5,027‌)
—‌
—‌
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(17,334,981‌)
(16,400,283‌)
(62,964,245‌)
(40,650,633‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.........................
130,528,317‌
30,377,670‌
485,402,609‌
535,223,240‌
NET
ASSETS
Total
increase
in
net
assets
...................................................
132,182,086‌
46,455,073‌
466,227,744‌
555,893,721‌
Beginning
of
year
..........................................................
488,703,569‌
442,248,496‌
1,134,534,980‌
578,641,259‌
End
of
year
..............................................................
$
620,885,655‌
$
488,703,569‌
$
1,600,762,724‌
$
1,134,534,980‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Statements
of
Changes
in
Net
Assets
(continued)
81
Financial
Statements
See
notes
to
financial
statements.
BlackRock
U.S.
Government
Bond
Portfolio
Year
Ended
September
30,
2020
2019
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..................................................................................
$
12,559,321‌
$
13,953,283‌
Net
realized
gain
......................................................................................
9,221,629‌
6,746,627‌
Net
change
in
unrealized
appreciation
(depreciation)
..............................................................
24,620,797‌
29,198,303‌
Net
increase
in
net
assets
resulting
from
operations
.................................................................
46,401,747‌
49,898,213‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
From
net
investment
income:
  Institutional
.........................................................................................
(6,146,838‌)
(5,086,218‌)
  Service
............................................................................................
(74,974‌)
(64,915‌)
  Investor
A
..........................................................................................
(6,697,465‌)
(8,976,963‌)
  Investor
C
..........................................................................................
(267,817‌)
(549,706‌)
  Investor
C1
.........................................................................................
(50,588‌)
(257,385‌)
  Class
K
............................................................................................
(251,979‌)
(74,873‌)
  Class
R
............................................................................................
(137,036‌)
(391,511‌)
From
return
of
capital:
–
–
  Institutional
.........................................................................................
—‌
(19,062‌)
  Service
............................................................................................
—‌
(243‌)
  Investor
A
..........................................................................................
—‌
(33,644‌)
  Investor
C
..........................................................................................
—‌
(2,060‌)
  Investor
C1
.........................................................................................
—‌
(965‌)
  Class
K
............................................................................................
—‌
(281‌)
  Class
R
............................................................................................
—‌
(1,467‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.......................................................
(13,626,697‌)
(15,459,293‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.......................................................
208,076,330‌
7,461,750‌
NET
ASSETS
Total
increase
in
net
assets
.................................................................................
240,851,380‌
41,900,670‌
Beginning
of
year
........................................................................................
635,525,116‌
593,624,446‌
End
of
year
............................................................................................
$
876,376,496‌
$
635,525,116‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
82
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
Institutional
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.46‌
$
9.13‌
$
9.59‌
$
9.89‌
$
9.83‌
Net
investment
income
(a)
.....................................
0.22‌
0.27‌
0.25‌
0.19‌
0.19‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.14‌
0.41‌
(0.38‌)
(0.19‌)
0.15‌
Net
increase
(decrease)
from
investment
operations
....................
0.36‌
0.68‌
(0.13‌)
—‌
0.34‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.32‌)
(0.35‌)
(0.33‌)
(0.30‌)
(0.28‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.00‌)
(c)
(0.00‌)
(c)
Total
distributions
...........................................
(0.32‌)
(0.35‌)
(0.33‌)
(0.30‌)
(0.28‌)
Net
asset
value,
end
of
year
...................................
$
9.50‌
$
9.46‌
$
9.13‌
$
9.59‌
$
9.89‌
Total
Return
(d)
3.86%
7.55%
—
—
—
Based
on
net
asset
value
......................................
3.86%
7.55%
(1.36)%
0.01%
3.54%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
0.65%
1.14%
1.06%
0.74%
0.66%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.48%
0.95%
0.84%
0.52%
0.57%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.42%
0.42%
0.42%
0.43%
0.55%
Net
investment
income
.......................................
2.28%
2.92%
2.69%
1.93%
1.88%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
356,671‌
$
264,811‌
$
249,030‌
$
316,891‌
$
457,730‌
Portfolio
turnover
rate
(f)
.......................................
1,380%
1,482%
1,450%
1,198%
1,139%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.00%
0.00%
0.00%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
912%
947%
823%
423%
502%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
83
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
Service
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.44‌
$
9.12‌
$
9.57‌
$
9.87‌
$
9.82‌
Net
investment
income
(a)
.....................................
0.20‌
0.25‌
0.22‌
0.16‌
0.16‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.15‌
0.39‌
(0.36‌)
(0.19‌)
0.14‌
Net
increase
(decrease)
from
investment
operations
....................
0.35‌
0.64‌
(0.14‌)
(0.03‌)
0.30‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.30‌)
(0.32‌)
(0.31‌)
(0.27‌)
(0.25‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.00‌)
(c)
(0.00‌)
(c)
Total
distributions
...........................................
(0.30‌)
(0.32‌)
(0.31‌)
(0.27‌)
(0.25‌)
Net
asset
value,
end
of
year
...................................
$
9.49‌
$
9.44‌
$
9.12‌
$
9.57‌
$
9.87‌
Total
Return
(d)
3.71%
7.18%
—
—
—
Based
on
net
asset
value
......................................
3.71%
7.18%
(1.51)%
(0.25)%
3.08%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
0.92%
1.43%
1.32%
1.05%
0.98%
(f)
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.73%
1.20%
1.09%
0.79%
0.92%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.67%
0.67%
0.67%
0.68%
0.90%
Net
investment
income
.......................................
2.07%
2.70%
2.41%
1.68%
1.60%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
4,168‌
$
6,638‌
$
7,592‌
$
9,347‌
$
12,129‌
Portfolio
turnover
rate
(g)
.......................................
1,380%
1,482%
1,450%
1,198%
1,139%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.00%
0.00%
0.00%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
912%
947%
823%
423%
502%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
84
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
Investor
A
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.50‌
$
9.17‌
$
9.63‌
$
9.93‌
$
9.87‌
Net
investment
income
(a)
.....................................
0.19‌
0.25‌
0.23‌
0.16‌
0.15‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.15‌
0.40‌
(0.38‌)
(0.19‌)
0.16‌
Net
increase
(decrease)
from
investment
operations
....................
0.34‌
0.65‌
(0.15‌)
(0.03‌)
0.31‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.30‌)
(0.32‌)
(0.31‌)
(0.27‌)
(0.25‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.00‌)
(c)
(0.00‌)
(c)
Total
distributions
...........................................
(0.30‌)
(0.32‌)
(0.31‌)
(0.27‌)
(0.25‌)
Net
asset
value,
end
of
year
...................................
$
9.54‌
$
9.50‌
$
9.17‌
$
9.63‌
$
9.93‌
Total
Return
(d)
3.60%
7.27%
(1.58)%
—
—
Based
on
net
asset
value
......................................
3.60%
7.27%
(1.58)%
(0.23)%
3.19%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
0.93%
1.43%
1.33%
1.01%
(f)
0.92%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.73%
1.20%
1.09%
0.78%
0.91%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.67%
0.67%
0.67%
0.68%
0.89%
Net
investment
income
.......................................
2.04%
2.67%
2.44%
1.68%
1.51%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
161,035‌
$
137,065‌
$
120,582‌
$
172,685‌
$
256,577‌
Portfolio
turnover
rate
(g)
.......................................
1,380%
1,482%
1,450%
1,198%
1,139%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.00%
0.00%
0.00%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
912%
947%
823%
423%
502%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
85
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
Investor
C
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.46‌
$
9.13‌
$
9.58‌
$
9.88‌
$
9.83‌
Net
investment
income
(a)
.....................................
0.12‌
0.18‌
0.16‌
0.09‌
0.08‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.15‌
0.40‌
(0.37‌)
(0.19‌)
0.14‌
Net
increase
(decrease)
from
investment
operations
....................
0.27‌
0.58‌
(0.21‌)
(0.10‌)
0.22‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.23‌)
(0.25‌)
(0.24‌)
(0.20‌)
(0.17‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.00‌)
(c)
(0.00‌)
(c)
Total
distributions
...........................................
(0.23‌)
(0.25‌)
(0.24‌)
(0.20‌)
(0.17‌)
Net
asset
value,
end
of
year
...................................
$
9.50‌
$
9.46‌
$
9.13‌
$
9.58‌
$
9.88‌
Total
Return
(d)
2.83%
6.49%
(2.24)%
—
—
Based
on
net
asset
value
......................................
2.83%
6.49%
(2.24)%
(0.99)%
2.31%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
1.63%
2.17%
2.07%
1.76%
(f)
1.68%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.48%
1.95%
1.84%
1.53%
1.67%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
1.42%
1.42%
1.42%
1.43%
1.65%
Net
investment
income
.......................................
1.30%
1.96%
1.70%
0.93%
0.79%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
31,336‌
$
34,257‌
$
44,241‌
$
64,370‌
$
96,578‌
Portfolio
turnover
rate
(g)
.......................................
1,380%
1,482%
1,450%
1,198%
1,139%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.00%
0.00%
0.00%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
912%
947%
823%
423%
502%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
86
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
GNMA
Portfolio
Class
K
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.43‌
$
9.10‌
$
9.55‌
$
9.85‌
$
9.80‌
Net
investment
income
(a)
.....................................
0.22‌
0.27‌
0.25‌
0.19‌
0.19‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.1
4‌
0.41‌
(0.37‌)
(0.19‌)
0.15‌
Net
increase
(decrease)
from
investment
operations
....................
0.3
6‌
0.68‌
(0.12‌)
—‌
0.34‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.3
2‌
)
(0.35‌)
(0.33‌)
(0.30‌)
(0.29‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.00‌)
(c)
(0.00‌)
(c)
Total
distributions
...........................................
(0.3
2‌
)
(0.35‌)
(0.33‌)
(0.30‌)
(0.29‌)
Net
asset
value,
end
of
year
...................................
$
9.47‌
$
9.43‌
$
9.10‌
$
9.55‌
$
9.85‌
Total
Return
(d)
3.91%
7.62%
(1.22)%
—
—
Based
on
net
asset
value
......................................
3.91%
7.62%
(1.22)%
0.04%
3.47%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
0.54%
1.03
%
0.94%
0.66%
0.56%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.43%
0.90%
0.79%
0.50%
0.54%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.37%
0.37%
0.37%
0.38%
0.52%
Net
investment
income
.......................................
2.34%
2.93%
2.73%
2.00%
1.90%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
67,675‌
$
45,934‌
$
20,802‌
$
21,025‌
$
19,209‌
Portfolio
turnover
rate
(f)
.......................................
1,380%
1,482%
1,450%
1,198%
1,139%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.00%
0.00%
0.00%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
912%
947%
823%
423%
502%
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
87
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
BlackRock
Income
Fund
Institutional
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.32‌
$
10.13‌
$
10.31‌
$
10.14‌
$
9.99‌
Net
investment
income
(a)
.....................................
0.44‌
0.47‌
0.43‌
0.41‌
0.43‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.06‌)
0.24‌
(0.18‌)
0.20‌
0.16‌
Net
increase
from
investment
operations
............................
0.38‌
0.71‌
0.25‌
0.61‌
0.59‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.47‌)
(0.52‌)
(0.43‌)
(0.44‌)
(0.44‌)
From
net
realized
gain
.......................................
(0.01‌)
—‌
—‌
—‌
—‌
Total
distributions
...........................................
(0.48‌)
(0.52‌)
(0.43‌)
(0.44‌)
(0.44‌)
Net
asset
value,
end
of
year
...................................
$
10.22‌
$
10.32‌
$
10.13‌
$
10.31‌
$
10.14‌
Total
Return
(c)
3.90%
7.22%
2.52%
—
—
Based
on
net
asset
value
......................................
3.90%
(d)
7.22%
2.52%
6.12%
6.09%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
(f)
............................................
0.73%
0.78%
0.83%
0.90%
0.80%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.62%
0.62%
0.63%
0.63%
0.68%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.....................................
0.62%
0.62%
0.63%
0.63%
0.68%
Net
investment
income
.......................................
4.35%
4.64%
4.22%
4.03%
4.28%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
1,300,683‌
$
919,409‌
$
457,518‌
$
337,106‌
$
218,738‌
Portfolio
turnover
rate
........................................
92%
77%
100%
126%
101%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.03%
0.04%
0.01%
0.02%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
N/A
0.82%
0.90%
0.80%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
88
(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
the
effects
of
any
sales
charges
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees
for
the
year
ended
September
30,
2018,
the
expense
ratio
would
have
been
1.11%.
BlackRock
Income
Fund
Investor
A
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.32‌
$
10.13‌
$
10.30‌
$
10.13‌
$
9.99‌
Net
investment
income
(a)
.....................................
0.41‌
0.44‌
0.40‌
0.39‌
0.40‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.05‌)
0.24‌
(0.16‌)
0.19‌
0.16‌
Net
increase
from
investment
operations
............................
0.36‌
0.68‌
0.24‌
0.58‌
0.56‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.45‌)
(0.49‌)
(0.41‌)
(0.41‌)
(0.42‌)
From
net
realized
gain
.......................................
(0.01‌)
—‌
—‌
—‌
—‌
Total
distributions
...........................................
(0.46‌)
(0.49‌)
(0.41‌)
(0.41‌)
(0.42‌)
Net
asset
value,
end
of
year
...................................
$
10.22‌
$
10.32‌
$
10.13‌
$
10.30‌
$
10.13‌
Total
Return
(c)
3.64%
6.96%
2.36%
—
—
Based
on
net
asset
value
......................................
3.64%
(d)
6.96%
2.36%
5.86%
5.72%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
0.97%
1.04%
1.12%
(f)
1.17%
1.10%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.87%
0.87%
0.88%
0.88%
0.93%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.....................................
0.87%
0.87%
0.88%
0.88%
0.93%
Net
investment
income
.......................................
4.10%
4.40%
3.94%
3.81%
4.04%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
142,602‌
$
102,857‌
$
75,462‌
$
109,702‌
$
120,167‌
Portfolio
turnover
rate
........................................
92%
77%
100%
126%
101%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.03%
0.04%
0.01%
0.02%
0.01%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
89
Financial
Highlights
(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
the
effects
of
any
sales
charges
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees
for
the
year
ended
September
30,
2018,
the
expense
ratio
would
have
been
1.83%.
BlackRock
Income
Fund
Investor
C
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.32‌
$
10.13‌
$
10.31‌
$
10.14‌
$
9.99‌
Net
investment
income
(a)
.....................................
0.34‌
0.37‌
0.33‌
0.31‌
0.33‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.05‌)
0.23‌
(0.18‌)
0.19‌
0.16‌
Net
increase
from
investment
operations
............................
0.29‌
0.60‌
0.15‌
0.50‌
0.49‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.37‌)
(0.41‌)
(0.33‌)
(0.33‌)
(0.34‌)
From
net
realized
gain
.......................................
(0.01‌)
—‌
—‌
—‌
—‌
Total
distributions
...........................................
(0.38‌)
(0.41‌)
(0.33‌)
(0.33‌)
(0.34‌)
Net
asset
value,
end
of
year
...................................
$
10.23‌
$
10.32‌
$
10.13‌
$
10.31‌
$
10.14‌
Total
Return
(c)
2.97%
6.16%
1.50%
—
—
Based
on
net
asset
value
......................................
2.97%
(d)
6.16%
1.50%
5.07%
5.04%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
1.73%
1.79%
1.84%
(f)
1.90%
1.82%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.62%
1.62%
1.63%
1.63%
1.68%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.....................................
1.62%
1.62%
1.63%
1.63%
1.68%
Net
investment
income
.......................................
3.37%
3.66%
3.21%
3.06%
3.28%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
30,905‌
$
32,197‌
$
29,812‌
$
30,536‌
$
29,321‌
Portfolio
turnover
rate
........................................
92%
77%
100%
126%
101%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.03%
0.04%
0.01%
0.02%
0.01%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
90
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Aggregate
total
return.
(g)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(h)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(i)
Annualized.
(j)
Portfolio
turnover
rate
is
representative
of
the
portfolio
for
the
entire
year.
BlackRock
Income
Fund
Class
K
Year
Ended
September
30,
Period
from
08/01/16
(a)
to
09/30/16
2020
2019
2018
2017
Net
asset
value,
beginning
of
period
.............................
$
10.32‌
$
10.13‌
$
10.31‌
$
10.14‌
$
10.08‌
Net
investment
income
(b)
.....................................
0.44‌
0.47‌
0.44‌
0.42‌
0.07‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.05‌)
0.24‌
(0.18‌)
0.19‌
0.06‌
Net
increase
from
investment
operations
............................
0.39‌
0.71‌
0.26‌
0.61‌
0.13‌
Distributions
(c)
–
–
–
–
–
From
net
investment
income
..................................
(0.48‌)
(0.52‌)
(0.44‌)
(0.44‌)
(0.07‌)
From
net
realized
gain
.......................................
(0.01‌)
—‌
—‌
—‌
—‌
Total
distributions
...........................................
(0.49‌)
(0.52‌)
(0.44‌)
(0.44‌)
(0.07‌)
Net
asset
value,
end
of
period
..................................
$
10.22‌
$
10.32‌
$
10.13‌
$
10.31‌
$
10.14‌
Total
Return
(d)
3.95%
7.27%
2.57%
—
—
Based
on
net
asset
value
......................................
3.95%
(e)
7.27%
2.57%
6.17%
1.32%
(f)
Ratios
to
Average
Net
Assets
(g)
Total
expenses
.............................................
0.65%
0.69%
0.74%
(h)
0.84%
0.76%
(
i
)
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.57%
0.57%
0.57%
0.58%
0.57%
(
i
)
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.....................................
0.57%
0.57%
0.57%
0.58%
0.57%
(
i
)
Net
investment
income
.......................................
4.40%
4.65%
4.37%
4.11%
4.36%
(
i
)
Supplemental
Data
Net
assets,
end
of
period
(000)
..................................
$
126,573‌
$
80,072‌
$
15,849‌
$
206‌
$
201‌
Portfolio
turnover
rate
........................................
92%
77%
100%
126%
101%
(j)
Year
Ended
September
30,
Period
from
08/01/16
(a)
to
09/30/16
2020
2019
2018
2017
Investments
in
underlying
funds
..................................
0.03%
0.04%
0.01%
0.02%
0.01%
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
91
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
Portfolio
Institutional
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.62‌
$
10.03‌
$
10.45‌
$
10.76‌
$
10.64‌
Net
investment
income
(a)
.....................................
0.20‌
0.26‌
0.23‌
0.20‌
0.18‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.51‌
0.62‌
(0.40‌)
(0.26‌)
0.20‌
Net
increase
(decrease)
from
investment
operations
....................
0.71‌
0.88‌
(0.17‌)
(0.06‌)
0.38‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.22‌)
(0.29‌)
(0.25‌)
(0.24‌)
(0.26‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.01‌)
—‌
Total
distributions
...........................................
(0.22‌)
(0.29‌)
(0.25‌)
(0.25‌)
(0.26‌)
Net
asset
value,
end
of
year
...................................
$
11.11‌
$
10.62‌
$
10.03‌
$
10.45‌
$
10.76‌
Total
Return
(d)
6.72%
8.86%
(1.68)%
—
—
Based
on
net
asset
value
......................................
6.72%
8.86%
(1.68)%
(0.55)%
3.67%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
0.76%
(e)
1.20%
1.04%
0.90%
0.92%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.56%
(e)
0.96%
0.76%
0.58%
0.73%
Total
expenses
afte
r
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.45%
(e)
0.45%
0.45%
0.46%
0.62%
Net
investment
income
.......................................
1.79%
(e)
2.51%
2.21%
1.81%
1.70%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
412,161‌
$
217,815‌
$
166,465‌
$
165,709‌
$
156,865‌
Portfolio
turnover
rate
(f)
.......................................
745%
837%
892%
982%
929%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
508%
571%
590%
658%
619%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
92
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
Portfolio
Service
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.62‌
$
10.03‌
$
10.45‌
$
10.75‌
$
10.63‌
Net
investment
income
(a)
.....................................
0.22‌
0.21‌
0.20‌
0.17‌
0.16‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.46‌
0.64‌
(0.40‌)
(0.25‌)
0.20‌
Net
increase
(decrease)
from
investment
operations
....................
0.68‌
0.85‌
(0.20‌)
(0.08‌)
0.36‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.19‌)
(0.26‌)
(0.22‌)
(0.21‌)
(0.24‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.01‌)
—‌
Total
distributions
...........................................
(0.19‌)
(0.26‌)
(0.22‌)
(0.22‌)
(0.24‌)
Net
asset
value,
end
of
year
...................................
$
11.11‌
$
10.62‌
$
10.03‌
$
10.45‌
$
10.75‌
Total
Return
(d)
6.46%
8.60%
(1.93)%
—
—
Based
on
net
asset
value
......................................
6.46%
8.60%
(1.93)%
(0.70)%
3.47%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
0.96%
(e)
1.48%
1.28%
1.18%
1.21%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.81%
(e)
1.21%
1.01%
0.82%
0.92%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.70%
(e)
0.70%
0.70%
0.70%
0.81%
Net
investment
income
.......................................
2.03%
(e)
2.04%
1.96%
1.57%
1.51%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
1,113‌
$
8,040‌
$
541‌
$
2,039‌
$
4,452‌
Portfolio
turnover
rate
(f)
.......................................
745%
837%
892%
982%
929%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
508%
571%
590%
658%
619%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
93
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
Portfolio
Investor
A
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.65‌
$
10.06‌
$
10.47‌
$
10.79‌
$
10.66‌
Net
investment
income
(a)
.....................................
0.18‌
0.24‌
0.20‌
0.15‌
0.15‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.50‌
0.61‌
(0.39‌)
(0.25‌)
0.21‌
Net
increase
(decrease)
from
investment
operations
....................
0.68‌
0.85‌
(0.19‌)
(0.10‌)
0.36‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.19‌)
(0.26‌)
(0.22‌)
(0.21‌)
(0.23‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.01‌)
—‌
Total
distributions
...........................................
(0.19‌)
(0.26‌)
(0.22‌)
(0.22‌)
(0.23‌)
Net
asset
value,
end
of
year
...................................
$
11.14‌
$
10.65‌
$
10.06‌
$
10.47‌
$
10.79‌
Total
Return
(d)
6.45%
8.57%
(1.82)%
—
—
Based
on
net
asset
value
......................................
6.45%
8.57%
(1.82)%
(0.88)%
3.42%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
1.02%
(e)
1.47%
1.31%
1.16%
(f)
1.19%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.81%
(e)
1.21%
1.01%
0.83%
1.06%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.70%
(e)
0.70%
0.70%
0.71%
0.95%
Net
investment
income
.......................................
1.61%
(e)
2.28%
1.96%
1.56%
1.40%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
414,711‌
$
354,704‌
$
353,770‌
$
422,775‌
$
463,530‌
Portfolio
turnover
rate
(g)
.......................................
745%
837%
892%
982%
929%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
508%
571%
590%
658%
619%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
94
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
Portfolio
Investor
C
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.63‌
$
10.04‌
$
10.46‌
$
10.77‌
$
10.65‌
Net
investment
income
(a)
.....................................
0.09‌
0.16‌
0.12‌
0.07‌
0.07‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.51‌
0.61‌
(0.40‌)
(0.24‌)
0.20‌
Net
increase
(decrease)
from
investment
operations
....................
0.60‌
0.77‌
(0.28‌)
(0.17‌)
0.27‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.11‌)
(0.18‌)
(0.14‌)
(0.13‌)
(0.15‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.01‌)
—‌
Total
distributions
...........................................
(0.11‌)
(0.18‌)
(0.14‌)
(0.14‌)
(0.15‌)
Net
asset
value,
end
of
year
...................................
$
11.12‌
$
10.63‌
$
10.04‌
$
10.46‌
$
10.77‌
Total
Return
(d)
5.66%
7.78%
(2.66)%
—
—
Based
on
net
asset
value
......................................
5.66%
7.78%
(2.66)%
(1.54)%
2.53%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
1.80%
(e)
2.30%
2.14%
1.94%
1.97%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.56%
(e)
1.96%
1.76%
1.58%
1.83%
Total
expenses
after
fees
waived
and/or
reimburse
d
and
excluding
interest
expense
1.45%
(e)
1.45%
1.45%
1.46%
1.72%
Net
investment
income
.......................................
0.84%
(e)
1.55%
1.21%
0.80%
0.62%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
25,922‌
$
26,193‌
$
35,014‌
$
38,574‌
$
51,545‌
Portfolio
turnover
rate
(f)
.......................................
745%
837%
892%
982%
929%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
508%
571%
590%
658%
619%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
95
Financial
Highlights
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(d)
Amount
is
greater
than
$(0.005)
per
share.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Aggregate
total
return.
(g)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(h)
Annualized.
(i)
Offering
and
Board
realignment
and
consolidation
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
1.04%.
(j)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
(k)
Portfolio
turnover
rate
is
representative
of
the
portfolio
for
the
entire
year.
BlackRock
U.S.
Government
Bond
Portfolio
Class
K
Year
Ended
September
30,
Period
from
01/25/18
(a)
to
09/30/18
2020
2019
Net
asset
value,
beginning
of
period
...........................................................
$
10.62‌
$
10.04‌
$
10.27‌
Net
investment
income
(b)
...................................................................
0.20‌
0.25‌
0.14‌
Net
realized
and
unrealized
gain
(loss)
.........................................................
0.51‌
0.62‌
(0.20‌)
Net
increase
(decrease)
from
investment
operations
..................................................
0.71‌
0.87‌
(0.06‌)
Distributions
(c)
–
–
–
From
net
investment
income
................................................................
(0.22‌)
(0.29‌)
(0.17‌)
From
return
of
capital
.....................................................................
—‌
(0.00‌)
(d)
—‌
Total
distributions
.........................................................................
(0.22‌)
(0.29‌)
(0.17‌)
Net
asset
value,
end
of
period
................................................................
$
11.11‌
$
10.62‌
$
10.04‌
Total
Return
(e)
6.78%
8.81%
(0.60)%
Based
on
net
asset
value
....................................................................
6.78%
8.81%
(0.60)%
(f)
Ratios
to
Average
Net
Assets
Total
expenses
...........................................................................
0.64%
(g)
1.06%
1.03%
(h)(
i
)
Total
expenses
after
fees
waived
and/or
reimbursed
..................................................
0.51%
(g)
0.91%
0.86%
(h)
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
.............................
0.40%
(g)
0.40%
0.40%
(h)
Net
investment
income
.....................................................................
1.79%
(g)
2.44%
2.03%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
................................................................
$
17,335‌
$
5,031‌
$
1,517‌
Portfolio
turnover
rate
(j)
......................................................................
745%
837%
892%
(k)
Year
Ended
September
30,
Period
from
01/25/18
(a)
to
09/30/18
2020
2019
Portfolio
turnover
rate
(excluding
MDRs)
..........................................................
508%
571%
590%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
96
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.01%.
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
U.S.
Government
Bond
Portfolio
Class
R
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
10.65‌
$
10.06‌
$
10.47‌
$
10.78‌
$
10.66‌
Net
investment
income
(a)
.....................................
0.16‌
0.21‌
0.18‌
0.13‌
0.12‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.49‌
0.61‌
(0.40‌)
(0.24‌)
0.20‌
Net
increase
(decrease)
from
investment
operations
....................
0.65‌
0.82‌
(0.22‌)
(0.11‌)
0.32‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.16‌)
(0.23‌)
(0.19‌)
(0.19‌)
(0.20‌)
From
return
of
capital
.......................................
—‌
(0.00‌)
(c)
—‌
(0.01‌)
—‌
Total
distributions
...........................................
(0.16‌)
(0.23‌)
(0.19‌)
(0.20‌)
(0.20‌)
Net
asset
value,
end
of
year
...................................
$
11.14‌
$
10.65‌
$
10.06‌
$
10.47‌
$
10.78‌
Total
Return
(d)
6.18%
8.30%
(2.07)%
—
—
Based
on
net
asset
value
......................................
6.18%
8.30%
(2.07)%
(1.04)%
3.06%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
1.36%
(e)
2.11%
1.64%
1.47%
1.49%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.06%
(e)
1.46%
1.26%
1.08%
1.32%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.95%
(e)
0.95%
0.95%
0.96%
1.21%
Net
investment
income
.......................................
1.51%
(e)
2.06%
1.72%
1.30%
1.12%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
5,133‌
$
13,734‌
$
19,660‌
$
22,215‌
$
26,247‌
Portfolio
turnover
rate
(f)
.......................................
745%
837%
892%
982%
929%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
508%
571%
590%
658%
619%
See
notes
to
financial
statements.
Notes
to
Financial
Statements
97
Notes
to
Financial
Statements
ORGANIZATION 
BlackRock
Funds
V (the
“Trust”)
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
management
investment
company.
The
Trust
is
organized
as
a
Massachusetts
business trust.
The
following,
each
of
which
is
a
series
of
the
Trust,
are
referred
to
herein
collectively
as
the
“Funds”
or
individually
as
a
“Fund”:
Each
Fund
offers
multiple
classes
of
shares.
All
classes
of
shares
have
identical
voting,
dividend,
liquidation
and
other
rights
and
are
subject
to
the
same
terms
and
conditions,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares.
Institutional,
Service
and
Class K
Shares
are
sold
only
to
certain
eligible
investors.
Service,
Investor
A,
Investor
C
and
Class
R
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares,
and
Investor
C
and
Class
R
Shares
also
bear
certain
expenses
related
to
the
distribution
of
such
shares.
Investor A
and
Investor C
Shares
are
generally
available
through
financial
intermediaries.
Class R
Shares
are
sold
only
to
certain
employer-sponsored
retirement
plans.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures
(except
that
Investor C
shareholders
may
vote
on
material
changes
to
the
Investor
A
Shares
distribution
and
service
plan).
On
February
24,
2020,
U.S.
Government
Bond’s
issued
and
outstanding
Investor
C1
Shares
converted
into
Investor
A
Shares.
(a)
Investor
A
Shares
may
be
subject
to
a
contingent
deferred
sales
charge
(“CDSC”)
for
certain
redemptions
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
(b)
A
CDSC
of
1.00%
is
assessed
on
certain
redemptions
of
Investor
C
Shares
made
within
one
year
after
purchase.
(c)
Effective
November
23,
2020,
the
automatic
conversion
feature
will
be
modified
to
reduce
the
conversion
period
from
ten
years
to
eight
years.
On
February
20,
2020,
the
Board
of
Trustees
of
the
Trust
(the
"Board")
approved
a
change
in
the
name
of
BlackRock
Credit
Strategies
Income
Fund,
effective
as
of
May
1,
2020,
to
BlackRock
Income
Fund.
The
Funds,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
"Manager") or
its
affiliates,
are
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.
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.
Each
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
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
date
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
date
may
have
passed
are
subsequently
recorded
when
the
Funds
are
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
daily
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.
For
convertible
securities,
premiums
attributable
to
the
debt
instrument
are
amortized,
but
premiums
attributable
to
the
conversion
feature
are
not
amortized.
Foreign
Currency
Translation:
Each
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. 
Each
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statements
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.
Each
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.
Fund
Name
Herein
Referred
To
As
Diversification
Classification
BlackRock
GNMA
Portfolio
..................................................
GNMA
Diversified
BlackRock
Income
Fund
....................................................
Income
Fund
Diversified
BlackRock
U.S.
Government
Bond
Portfolio
.......................................
U.S.
Government
Bond
Diversified
Share
Class
Initial
Sales
Charge
CDSC
Conversion
Privilege
Institutional,
Service,
Class
K
and
Class
R
Shares
........................
No
No
None
Investor
A
Shares
............................................
Yes
No
(a)
None
Investor
C
Shares
...........................................
No
Yes
(b)
To
Investor
A
Shares
after
approximately
10
years
(c)
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
98
Foreign
Taxes:
The
Funds
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
each
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
each
Fund
and
are
reflected
in
its
Statements
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Foreign
taxes
withheld”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
September
30,
2020
,
if
any,
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
Segregation
and
Collateralization:
In
cases
where a
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, a
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
Funds
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
portion
of
distributions,
if
any,
that
exceeds
a
fund's
current
and
accumulated
earnings
and
profits,
as
measured
on
a
tax
basis,
constitute
a
non-taxable
return
of
capital.
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
,
the
trustees
who
are
not
“interested
persons”
of
the
Funds,
as
defined
in
the
1940
Act
(“Independent
Trustees
”),
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
Trustees
.
This
has
the
same
economic
effect
for
the
Independent 
Trustees
as
if
the
Independent 
Trustees
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
each
Fund,
as
applicable.
Deferred
compensation
liabilities,
if
any, are
included
in
the
Trustees’
and
Officer’s
fees
payable
in
the
Statements
of
Assets
and
Liabilities
and
will
remain
as
a
liability
of
the
Funds
until
such
amounts
are
distributed
in
accordance
with
the
Plan. 
Recent
Accounting
Standards:
The
Funds
have
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
Funds
have
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
Funds
applied
the
amendments
on
a
modified
retrospective
basis
beginning
with
the
fiscal
period
ended
September
30,
2020.
The
adjusted
cost
basis
of
securities
at September
30,
2019,
if
applicable,
are
as
follows:
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
Funds.
Indemnifications:
In
the
normal
course
of
business,
a
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
A
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
a
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to
a
Fund
or
its
classes
are
charged
to
that
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Funds
and
other
shared
expenses
prorated
to
the
Funds
are
allocated
daily
to
each
class
based
on
their
relative
net
assets
or
other
appropriate
methods.
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. 
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 The
Funds'
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes.
U.S.
GAAP
defines
fair
value
as
the
price
the
Funds
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Funds
determine
the
fair
values
of
their
financial
instruments
using
various
independent
dealers
or
pricing
services
under
policies
approved
by
the
Board.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value.
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
each
Fund’s
assets
and
liabilities: 
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day's official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
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.  
Generally,
trading
in
foreign
instruments
is
substantially
completed
each
day
at
various
times
prior
to
the
close
of
trading
on
the
Funds'
listing
exchange.
Occasionally,
events
affecting
the
values
of
such
instruments
may
occur
between
the
foreign
market
close
and
the
close
of
trading
on
the Funds'
listing
exchange that
may
not
be
GNMA
...............................................................................................
$
694
,
459
,
531‌
Income
Fund
...........................................................................................
1,
164,690,167‌
U.S.
Government
Bond
.....................................................................................
739
,
220,279‌
Notes
to
Financial
Statements
(continued)
99
Notes
to
Financial
Statements
reflected
in
the
computation
of
the
Funds’
net
assets.
Each
business
day,
the
Funds
use
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
Funds'
listing
exchange,
which
follows
the
close
of
the
local
markets. 
Fixed-income investments
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),
market
data, 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.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day's
published
net
asset
value
(“NAV”). 
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
price
on
the
exchange
where
the
contract
is
traded.
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.
Exchange-traded
equity
options
for
which
market
quotations
are
readily
available
will
be
valued
at
the
National
Best
Bid
and
Offer
quotes
(“NBBO”).
NBBO
represents
the
mean
of
the
bid
and
ask
prices
as
quoted
on
the
exchange
on
which
such
options
are
traded.
In
the
event
that
there
is
no
mean
price
available,
the
last
bid
(long
positions)
or
ask
(short
positions)
price
will
be
used.
If
no
bid
or
ask
price
is
available,
the
prior
day's
price
may
be
used.
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.
Swap
agreements
are
valued
utilizing
quotes
received
daily
by
independent pricing
services
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
investment,
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
each
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.  
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.  
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. 
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.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
100
The
Private
Companies
are
not
subject
to
the
public
company
disclosure,
timing,
and
reporting
standards
applicable
to other
investments
held
by
a
Fund.
Typically,
the
most
recently
available
information
by
a
Private
Company
is
as
of
a
date
that
is
earlier
than
the
date
a
Fund
is
calculating
its
NAV.
This
factor
may
result
in
a
difference
between
the
value
of
the
investment
and
the
price
a
Fund
could
receive
upon
the
sale
of
the
investment. 
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows: 
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
each
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
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
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
As
of
September
30,
2020,
certain
investments
of
the
Income
Fund
were
fair
valued
using
NAV
per
share
as
no
quoted
market
value
is
available
and
therefore
have
been
excluded
from
the
fair
value
hierarchy. 
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. 
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.
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
Statements
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
Notes
to
Financial
Statements
(continued)
101
Notes
to
Financial
Statements
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. 
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
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. 
Warrants:
Warrants
entitle
a
fund
to
purchase
a
specified
number
of
shares
of
common
stock
and
are
non-income
producing.
The
purchase
price
and
number
of
shares
are
subject
to
adjustment
under
certain
conditions
until
the
expiration
date
of
the
warrants,
if
any.
If
the
price
of
the
underlying
stock
does
not
rise
above
the
strike
price
before
the
warrant
expires,
the
warrant
generally
expires
without
any
value
and
a
fund
will
lose
any
amount
it
paid
for
the
warrant.
Thus,
investments
in
warrants
may
involve
more
risk
than
investments
in
common
stock.
Warrants
may
trade
in
the
same
markets
as
their
underlying
stock;
however,
the
price
of
the
warrant
does
not
necessarily
move
with
the
price
of
the
underlying
stock. 
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
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
102
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,
certain
Funds
may
also
enter
into
unfunded
floating
rate
loan
interests
(“commitments”).
In
connection
with
these
commitments,
a
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
Statements
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
Statements
of
Assets
and
Liabilities
and
Statements
of
Operations.
As
of
period
end,
the
Income
Fund
had
the
following
unfunded
floating
rate
loan
interests: 
Forward
Commitments,
When-Issued
and
Delayed
Delivery
Securities:
Certain
funds
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.
A
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,
a
Fund
may
be
required
to
pay
more
at
settlement
than
the
security
is
worth.
In
addition,
a
Fund
is
not
entitled
to
any
of
the
interest
earned
prior
to
settlement.
When
purchasing
a
security
on
a
delayed
delivery
basis,
a
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,
a
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 its
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
Statements
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
Schedules
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
:
Certain
funds
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. 
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
Statements
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
Statements
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.
Borrower
Par
Commitment
Amount
Value
Unrealized
Appreciation
(Depreciation)
Intelsat
Jackson
Holdings
SA,
Facility
Term
Loan
............................
$
25,105‌
$
25,105‌
$
25,502‌
$
397‌
MED
ParentCo
LP,
Delayed
Draw
1st
Lien
Term
Loan
.........................
39,532‌
39,289‌
37,485‌
(1,804‌)
Notes
to
Financial
Statements
(continued)
103
Notes
to
Financial
Statements
For
the
year
ended
September
30,
2020,
the
average
amount
of
reverse
repurchase
agreements
outstanding and
the
daily
weighted
average
interest
rate
for
the
Funds
were
as
follows:
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
GNMA’s
open
reverse
repurchase
agreements by
counterparty
which
are
subject
to
offset
under
an
MRA
on
a
net
basis:  
(a)
Collateral
with
a
value
of
$18,869,940
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.
Derivative
Financial
Instruments
The
Funds
engage
in
various
portfolio
investment
strategies
using
derivative
contracts
both
to
increase
the
returns
of
the
Funds
and/or
to
manage
their
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
Schedules
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
Funds
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
Funds
are
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
Statements
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedules
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Funds
agree
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
Statements
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statements
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).
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
Funds
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
Statements
of
Assets
and
Liabilities.
When
a
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statements
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 Statements
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
Statements
of
Assets
and
Liabilities.
GNMA
U.S.
Government
Bond
Average
Borrowings
..............................................................................
$
24,409,088‌
$
50,408,490‌
Daily
Weighted
Average
Interest
Rate
..................................................................
1.34%
1.62%
Counterparty
Reverse
Repurchase
Agreements
Fair
Value
of
Non-cash
Collateral
Pledged
Including
Accrued
Interest
(a)
Cash
Collateral
Pledged
Net
Amount
BNP
Paribas
SA
................................................
$
(18,251,805)
$
18,251,805
$
–
$
–
$
(18,251,805)
$
18,251,805
$
–
$
–
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
104
Options:
Certain
Funds
purchase
and
write
call
and
put
options
to
increase
or
decrease
their
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
Statements
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
Statements
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
Statements
of
Operations
to
the
extent
the
cost
of
the
closing
transaction
exceeds
the
premiums
received
or
paid.
When
the
Funds
write
a
call
option,
such
option
is
typically
“covered,”
meaning
that
they
hold
the
underlying
instrument
subject
to
being
called
by
the
option
counterparty.
When
the
Funds
write
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
Statements
of
Assets
and
Liabilities.
Swaptions
–
Certain
Funds
purchase
and
write
swaptions
primarily
to
preserve
a
return
or
spread
on
a
particular
investment
or
portion
of
the
Funds’
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
– Certain
Funds
purchase
and
write
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
– Certain
Funds
may
purchase
and
write
a
variety
of
options
with
non-standard
payout
structures
or
other
features
(“barrier
options”)
that
are
generally
traded
OTC.
The
Funds
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
purchasing
and
writing
options,
the
Funds
bear
the
risk
of
an
unfavorable
change
in
the
value
of
the
underlying
instrument
or
the
risk
that
they
may
not
be
able
to
enter
into
a
closing
transaction
due
to
an
illiquid
market.
Exercise
of
a
written
option
could
result
in
the
Funds
purchasing
or
selling
a
security
when they
otherwise
would
not,
or
at
a
price
different
from
the
current
market
value.
Swaps:
Swap
contracts
are
entered
into
to
manage
exposure
to
issuers,
markets
and
securities.
Such
contracts
are
agreements
between
the
Funds
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
Statements
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
Statements
of
Assets
and
Liabilities.
Payments
received
or
paid
are
recorded
in
the
Statements
of
Operations
as
realized
gains
or
losses,
respectively.
When
an
OTC
swap
is
terminated,
a
realized
gain
or
loss
is
recorded
in
the
Statements
of
Operations
equal
to
the
difference
between
the
proceeds
from
(or
cost
of)
the
closing
transaction
and
the
Funds’
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
Funds’
counterparty
on
the
swap
agreement
becomes
the
CCP.
The
Funds
are
required
to
interface
with
the
CCP
through
the
broker.
Upon
entering
into
a
centrally
cleared
swap,
the
Funds
are
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
Schedules
of
Investments
and
cash
deposited
is
shown
as
cash
pledged
for
centrally
cleared
swaps
in
the
Statements
of
Assets
and
Liabilities.
Amounts
pledged,
which
are
considered
restricted
cash,
are
included
in
cash
pledged
for
centrally
cleared
swaps
in
the
Statements
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Funds
agree
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
Statements
of
Assets
and
Liabilities.
Payments
received
from
(paid
to)
the
counterparty,
including
at
termination,
are
recorded
as
realized
gains
(losses)
in
the
Statements
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
Funds
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
Funds
will
either
(i)
receive
from
the
seller
an
amount
equal
to
the
notional
Notes
to
Financial
Statements
(continued)
105
Notes
to
Financial
Statements
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
Funds
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.
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.
Forward
swaps
— Certain
Funds
enter
into
forward
interest
rate
swaps
and
forward
total
return
swaps.
In
a
forward
swap,
each
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.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risk
in
excess
of
the
amounts
recognized
in
the
Statements
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 their
contractual
rights
and
to
secure
rights
that
will
help
them mitigate
their
counterparty
risk,
the
Funds
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
their
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between each
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,
each
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
Funds
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
obligations
of
the
Funds
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statements
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
and
cash
received
as
collateral,
respectively.
Non-cash
collateral
pledged
by
the
Funds,
if
any,
is
noted
in
the
Schedules
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
Funds.
Any
additional
required
collateral
is
delivered
to/pledged
by
the
Funds
on
the
next
business
day.
Typically,
the
counterparty
is
not
permitted
to
sell,
re-pledge
or
use
cash
and
non-cash
collateral
it
receives.
A
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
Funds
from their
counterparties
are
not
fully
collateralized,
they
bear
the
risk
of
loss
from
counterparty
non-performance.
Likewise,
to
the
extent
the
Funds have
delivered
collateral
to
a
counterparty
and
stand
ready
to
perform
under
the
terms
of
their
agreement
with
such
counterparty, they
bear
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
Funds
do
not
offset
derivative
assets
and
derivative
liabilities
that
are
subject
to
netting
arrangements,
if
any,
in
the
Statements
of
Assets
and
Liabilities.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES 
Investment
Advisory:
The
Trust,
on
behalf
of
the
Funds,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Funds'
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”)
,
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of each
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of each
Fund.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
106
For
such
services,
each
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
the
following
percentages
of
the
average
daily
value
of
each
Fund’s
net
assets:
With
respect
to Income
Fund,
the
Manager
entered
into
separate
sub-advisory
agreements
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 Income
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 Income
Fund
to
the
Manager.
With
respect
to
U.S.
Government
Bond,
effective
May
19,
2020,
the
Manager
entered
into
a
sub-advisory
agreement
with
BIL,
an
affiliate
of
the
Manager.
The
Manager
pays
BIL
for
services
it
provides
for
that
portion
of
U.S.
Government
Bond
for
which
BIL,
as
applicable,
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
U.S.
Government
Bond
to
the
Manager.
Service
and
Distribution
Fees:
The
Trust
,
on behalf
of
the
Funds,
entered
into
a
Distribution
Agreement
and
a Distribution and
Service
Plan
with
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
the
Manager.
Pursuant
to
the
Distribution
and
Service
Plan
and
in
accordance
with
Rule
12b-1
under
the
1940
Act,
each
Fund
pays
BRIL
ongoing
service
and
distribution
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
annual
rates
based
upon
the
average
daily
net
assets
of
the
relevant
share
class
of
each
Fund
as
follows:
(a)
On
February
24,
2020,
Investor
C1
Shares
converted
into
Investor
A
Shares.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing
and
distribution
services to
the
Funds.
The
ongoing
service
and/or
distribution
fee
compensates
BRIL
and
each
broker-dealer
for
providing
shareholder
servicing
and/or
distribution related
services
to
shareholders.
For
the year
ended
September
30,
2020,
the
following
table
shows
the
class
specific
service
and
distribution
fees
borne
directly
by
each
share
class
of
each
Fund:
Administration:
The
Trust,
on
behalf
of
the
Funds,
entered
into
an
Administration
Agreement
with
the
Manager
,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
each
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statements
of
Operations,
is
paid
at
the
annual
rates
below.
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration —
class
specific
in
the
Statements
of
Operations,
at
an
annual
rate
of
0.02%
of
the
average
daily
net
assets
of
each
respective
class.
GNMA
U.S.
Government
Bond
Average
Daily
Net
Assets
Investment
Advisory
Fees
Investment
Advisory
Fees
First
$1
Billion
............................................................................................
0.340‌%
0.390‌%
$1
Billion
-
$3
Billion
........................................................................................
0.320‌
0.370‌
$3
Billion
-
$5
Billion
.......................................................................................
0.310‌
0.350‌
$5
Billion
-
$10
Billion
.......................................................................................
0.300‌
0.340‌
Greater
than
$10
Billion
.....................................................................................
0.280‌
0.330‌
Income
Fund
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
Billion
..........................................................................................................
0.500‌%
$1
Billion
-
$2
Billion
......................................................................................................
0.450‌
$2
Billion
-
$3
Billion
.....................................................................................................
0.425‌
Greater
than
$3
Billion
....................................................................................................
0.400‌
Service
Fees
Distribution
Fees
Service
..................................................................................................
0.25‌%
—‌%
Investor
A
.................................................................................................
0.25‌
—‌
Investor
C
.................................................................................................
0.25‌
0.75‌
Investor
C1
(a)
...............................................................................................
0.25‌
0.55‌
Class
R
..................................................................................................
0.25‌
0.25‌
Service
Investor
A
Investor
C
Investor
C1
Class
R
Total
GNMA
.....................................................
$
13,240‌
$
359,515‌
$
338,253‌
$
—‌
$
—‌
$
711,008‌
Income
Fund
.................................................
—‌
294,863‌
324,116‌
—‌
—‌
618,979‌
U.S.
Government
Bond
..........................................
9,692‌
9
62,636‌
273,730‌
28,575‌
44,081‌
1,318,714‌
Average
Daily
Net
Assets
Administration
Fees
First
$500
Million
0.0425
%
$500
Million
-
$1
Billion
0.0400
$1
Billion
-
$2
Billion
0.0375
$2
Billion
-
$4
Billion
0.0350
$4
Billion
-
$13
Billion
0.0325
Greater
than
$13
Billion
0.0300
Notes
to
Financial
Statements
(continued)
107
Notes
to
Financial
Statements
For
the
year
ended
September
30,
2020, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
each
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Funds
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
year ended September
30,
2020,
the
Funds 
paid
the
following
amounts
to
affiliates
of
BlackRock
in
return
for
these
services,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statements
of
Operations:
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Funds.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the year
ended
September
30,
2020,
each
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statements
of
Operations:
For
the
year ended
September
30,
2020,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
each
Fund:
(a)
On
February
24,
2020,
Investor
C1
Shares
converted
into
Investor
A
Shares.
Other
Fees:
For
the 
year
ended 
September
30,
2020
,
affiliates
earned
underwriting
discounts,
direct
commissions
and
dealer
concessions
on
sales
of
each
Fund's Investor
A
Shares
as
follows:
For
the
year
ended
September
30,
2020,
affiliates
received
CDSCs
as
follows:
Expense
Limitations,
Waivers,
Reimbursements,
and
Recoupments:
With
respect
to each
Fund,
the
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
each
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
January
31
,
2021
.
The
contractual
agreement
may
be
terminated upon
90
days’
notice
by
a
majority
of
the
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of a
Fund.
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.
Prior
to 
January
28,
2020,
this
waiver
was
voluntary. These
amounts
are
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations.
For
the
year
ended
September
30,
2020,
the
amounts
waived
were
as
follows:
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
each
Fund's
assets
invested
in
affiliated
equity
and
fixed-income
mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
January
31,
2021.
The
contractual
agreement
may
be terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Trustees, or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of a
Fund.
These
amounts
are
included
in
fees
waived
Institutional
Service
Investor
A
Investor
C
Investor
C1
(a)
Class
K
Class
R
Total
GNMA
.........................
$
57,559‌
$
1,058‌
$
28,740‌
$
6,760‌
$
—‌
$
12,987‌
$
—‌
$
107,104‌
Income
Fund
.....................
216,001‌
—‌
23,572‌
6,477‌
—‌
20,683‌
—‌
266,733‌
U.S.
Government
Bond
..............
62,889‌
774‌
76,95
6‌
5,471‌
714‌
2,546‌
1,76
2‌
151,112‌
Institutional
Investor
A
Total
GNMA
.........................................................................................
$
14,814‌
$
877‌
$
15,691‌
U.S.
Government
Bond
..............................................................................
89,244‌
2,151‌
91,395‌
Institutional
Service
Investor
A
Investor
C
Investor
C1
(a)
Class
K
Class
R
Total
GNMA
..............................
$
10,063‌
$
—‌
$
1,7
30‌
$
211‌
$
—‌
$
82‌
$
—‌
$
12,08
6‌
Income
Fund
..........................
1,874‌
—‌
79
6‌
1,139‌
—‌
—‌
—‌
3,8
09‌
U.S.
Government
Bond
...................
586‌
32‌
15,748‌
783‌
7‌
19‌
64‌
17,239‌
Institutional
Service
Investor
A
Investor
C
Investor
C1
(a)
Class
K
Class
R
Total
GNMA
.......................................
$
329,617‌
$
6,796‌
$
192,774‌
$
31,447‌
$
—‌
$
82‌
$
—‌
$
560,716‌
Income
Fund
...................................
1,068,412‌
—‌
108,740‌
31,736‌
—‌
26,516‌
—‌
1,235,404‌
U.S.
Government
Bond
............................
434,396‌
2,711‌
536,298‌
46,33
2‌
12,888‌
1,53
5‌
20,664‌
1,054,824‌
GNMA
................................................................................................................
$
24,229‌
Income
Fund
............................................................................................................
25,465‌
U.S.
Government
Bond
.....................................................................................................
15,233‌
Investor
A
Investor
C
GNMA
.....................................................................................................
$
4,874‌
$
6
,449‌
Income
Fund
.................................................................................................
9,070‌
7
,9
89‌
U.S.
Government
Bond
..........................................................................................
30
,
43
1‌
5,650‌
GNMA
....................................................................................................................
$
3,650‌
Income
Fund
................................................................................................................
81,709‌
U.S.
Government
Bond
.........................................................................................................
39,050‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
108
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations.
For
the
year
ended
September
30,
2020,
Income
Fund
waived
$203,562
in
investment
advisory
fees
pursuant
to
these
arrangements.
With
respect
to
each
Fund,
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 each
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets are
as
follows:
(a)
Share
class
currently
active,
but
no
assets
in
share
class.
The
Manager
has
agreed
not
to
reduce
or
discontinue
these
contractual
expense
limitations
through
January
31,
2021,
unless
approved
by
the
Board,
including
a
majority
of
Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
a
Fund. For
the
year
ended
September
30,
2020,
amounts
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations
were
as
follows:
These
amounts
waived
and/or
reimbursed
are
included
in administration
fees
waived
—
class
specific
and
transfer
agent
fees
waived
and/or
reimbursed
—
class
specific,
respectively,
in
the
Statements
of
Operations.
For
the
year ended
September
30,
2020,
class
specific
expense
waivers
and/or
reimbursements were
as
follows: 
With
respect
to
the
contractual
expense
limitation,
if
during
a
Fund’s
fiscal
year
the
operating
expenses
of
a
share
class,
that
at
any
time
during
the
prior
two
fiscal
years
received
a
waiver
and/or
reimbursement
from
the
Manager,
are
less
than
the
current
expense
limitation
for
that
share
class,
the
Manager
is
entitled
to
be
reimbursed
by
such
share
class
up
to
the
lesser
of:
(a)
the
amount
of
fees
waived
and/or
expenses
reimbursed
during
those
prior
two
fiscal
years
under
the
agreement
and
(b)
an
amount
not
to
exceed
either
the
current
expense
limitation
of
that
share
class
or
the
expense
limitation
of
the
share
class
in
effect
at
the
time
that
the
share
class
received
the
applicable
waiver
and/or
reimbursement,
provided
that:
(1)
each
Fund,
of
which
the
share
class
is
a
part,
has
more
than
$50
million
in
assets
for
the
fiscal
year,
and
(2)
the
Manager
or
an
affiliate
continues
to
serve
as
a
Fund’s
investment
adviser
or
administrator.
This
repayment
applies
only
to
the
contractual
expense
limitation
on
net
expenses
and
does
not
apply
to
the
contractual
investment
advisory
fee
waiver
described
above
or
any
voluntary
waivers
that
may
be
in
effect
from
time
to
time.
Effective
December
1,
2019,
the
repayment
arrangement
between each
Fund
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under each
Fund's
contractual
caps
on
net
expenses
was
terminated.
The
following
fund
level
and
class
specific
waivers
and/or
reimbursements
previously
recorded
by
the
Funds,
which
were
subject
to
recoupment
by
the
Manager,
expired
on
December
1,
2019:  
Institutional
Service
Investor
A
Investor
C
Investor
C1
Class
K
Class
R
GNMA
..........................................
0.42‌%
0.67‌%
0.67‌%
1.42‌%
N/A‌
0.37‌%
1.17‌%
(a)
Income
Fund
......................................
0.62‌
N/A‌
0.87‌
1.62‌
N/A‌
0.57‌
N/A‌
U.S.
Government
Bond
...............................
0.45‌
0.70‌
0.70‌
1.45‌
1.25‌%
0.40‌
0.95‌
GNMA
..................................................................................................................
$
473,857‌
Income
Fund
..............................................................................................................
258,967‌
U.S.
Government
Bond
.......................................................................................................
673,236‌
Administration
Fees
Waived
Institutional
Service
Investor
A
Investor
C
Investor
C1
Class
K
Class
R
Total
GNMA
..............................
$
57,55
9‌
$
1,058‌
$
28,74
0‌
$
6,760‌
$
—‌
$
12,987‌
$
—‌
$
107,104‌
Income
Fund
..........................
214,476‌
—‌
21,691‌
6,455‌
—‌
20,678‌
—‌
$
263,300‌
U.S.
Government
Bond
...................
62,738‌
75
7‌
76,7
39‌
5,456‌
71
4‌
2,539‌
1,755‌
$
150,698‌
Transfer
Agent
Fees
Waived
and/or
Reimbursed
Institutional
Service
Investor
A
Investor
C
Investor
C1
Class
K
Class
R
Total
GNMA
..............................
$
184,840‌
$
4,171‌
$
121,118‌
$
14,586‌
$
—‌
$
82‌
$
—‌
$
324,797‌
Income
Fund
..........................
492,197‌
—‌
47,761‌
15,031‌
—‌
21,569‌
—‌
$
576,558‌
U.S.
Government
Bond
...................
279,168‌
941‌
350,426‌
33,182‌
11,221‌
1,532‌
16,475‌
$
692,945‌
GNMA
Income
Fund
U.S.
Government
Bond
Fund
Level
....................................................................................
$
1,114,823‌
$
1,232,385‌
$
1,499,708‌
Institutional
....................................................................................
514,584‌
806,062‌
506,563‌
Service
......................................................................................
18,680‌
—‌
9,596‌
Investor
A
.....................................................................................
338,316‌
166,722‌
1,225,465‌
Investor
C
.....................................................................................
99,081‌
49,596‌
168,880‌
Investor
C1
....................................................................................
—‌
—‌
121,593‌
Class
K
......................................................................................
13,944‌
26,005‌
1,439‌
Class
R
......................................................................................
—‌
—‌
146,283‌
Notes
to
Financial
Statements
(continued)
109
Notes
to
Financial
Statements
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
each
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
each
Fund’s
investment
policies
and
restrictions.
Each
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
September
30,
2020,
the
Funds
did
not
participate
in
the
Interfund
Lending
Program.
Trustees
and
Officers:
Certain
trustees
and/or
officers
of
the Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Funds
reimburse
the
Manager
for
a
portion
of
the
compensation
paid
to
the 
Funds'
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statements
of
Operations. 
Other
Transactions:
During
the
year
ended
September
30,
2020,
Income
Fund
received
a
reimbursement
of
$6,184
from
an
affiliate,
which
is
included
in
payment
by
affiliate
in
the
Statements
of
Operations,
related
to
an
operating
event.
The
Funds
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 trustees.
For
the
year
ended
September
30,
2020,
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
AND
SALES 
For
the
year
ended
September
30,
2020,
purchases
and
sales
of
investments,
including
paydowns,
mortgage
dollar
rolls
and
excluding
short-term
investments,
were
as
follows:
For
the
year
ended
September
30,
2020,
purchases
and
sales
related
to
mortgage
dollar
rolls
were
as
follows:
INCOME
TAX
INFORMATION 
It
is
each
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. 
Each 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
each
Fund’s
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
years
after
they
are
filed.
The
statutes
of
limitations
on
each
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction. 
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Funds
as
of
September
30,
2020,
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
Funds’
financial
statements.
Purchases 
Sales 
Net
Realized
Gain
Income
Fund
......................................................................
$
5,865,194‌
$
1,056,278‌
$
6,951‌
U.S.
Government
Bond
...............................................................
—‌
213,550‌
13,500‌
GNMA
Income
Fund
U.S.
Government
Bond
Purchases
Non-U.S.
Government
Securities
.........................................................
$
9,931,978,779‌
$
1,539,374,469‌
$
6,108,351,689‌
U.S.
Government
Securities
.............................................................
5,206,159‌
—‌
220,769,513‌
$
9,937,184,938‌
$
1,539,374,469‌
$
6,329,121,202‌
Sales
Non-U.S.
Government
Securities
.........................................................
$
9,859,558,241‌
$
1,097,156,944‌
$
6,053,549,225‌
U.S.
Government
Securities
.............................................................
10,333,768‌
23,341,836‌
130,820,170‌
$
9,869,892,009‌
$
1,120,498,780‌
$
6,184,369,395‌
GNMA
U.S.
Government
Bond
Purchases
..........................................................................................
$
3,343,714,055‌
$
1,966,314,761‌
Sales
..............................................................................................
3,346,386,014‌
1,966,351,056‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
110
The
tax
character
of
distributions
paid
was
as
follows: 
As
of
period
end,
the
tax
components
of
accumulated
loss
were
as
follows:
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
differences
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
were
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,
the
timing
and
recognition
of
partnership
income,
dividends
deemed
recognized
for
tax
purposes,
the
accounting
for
swap
agreements,
the
classification
of
investments,
the
accrual
of
income
on
securities
in
default,
and
amortization
methods
for
premiums
and
discounts
on
fixed
income
securities.
(c)
The
Funds
have
elected
to
defer
certain
qualified
late-year
losses
and
recognize
such
losses
in
the
next
taxable
year.
During
the
year
ended September
30,
2020,
the
Fund
listed
below
utilized
the
following
amounts
of
their
respective
capital
loss
carryforward: 
As
of
September
30,
2020, gross
unrealized
appreciation
and
depreciation
for
investments
and
derivatives
based
on
cost
for
U.S.
federal
income
tax
purposes
were
as
follows: 
BANK
BORROWINGS 
BlackRock
Funds
V,
on
behalf
of
the
Funds,
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
Funds
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Funds,
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
2021
unless
extended
or
renewed.
Prior
to
April
16,
2020,
$500
million
was
specifically
designated
to
BlackRock
Floating
Rate
Income
Portfolio
and
Income
Fund
in
the
aggregate
under
the
credit
agreement
(the
"Additional
Tranche"),
with
the
ability
to
borrow
up
to
an
additional
$350
million
in
the
aggregate
of
the
remaining
aggregate
commitment.
Effective
April
16,
2020,
Income
Fund
is
no
longer
permitted
to
borrow
under
the
Additional
Tranche
and
is
only
permitted
to
borrow
under
the
$1.75
billion
tranche
in
the
same
capacity
as
other
Participating
Funds.
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
September
30,
2020,
the
Funds
did
not
borrow
under
the
credit
agreement.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business, certain
Funds
invest
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
each
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
Ordinary
Income
Return
of
Capital
Total
GNMA
09/30/20
............................................................................
$
17,334,981‌
$
—‌
$
17,334,981‌
09/30/19
............................................................................
16,337,810‌
62,473‌
16,400,283‌
Income
Fund
09/30/20
............................................................................
62,964,245‌
—‌
62,964,245‌
09/30/19
............................................................................
40,650,633‌
—‌
40,650,633‌
U.S.
Government
Bond
09/30/20
............................................................................
13,626,697‌
—‌
13,626,697‌
09/30/19
............................................................................
15,401,571‌
57,722‌
15,459,293‌
Non-expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Qualified
Late-year
Losses
(c)
Total
GNMA
...................................................................
$
(78,228,175‌)
$
14,052,615‌
$
—‌
$
(64,175,560‌)
Income
Fund
...............................................................
(14,917,285‌)
11,267,473‌
(1,985,746‌)
(5,635,558‌)
U.S.
Government
Bond
........................................................
(41,484,493‌)
36,295,453‌
—‌
(5,189,040‌)
U.S.
Government
Bond
Amount
utilized
............................................................................................................
$
7,138,321‌
GNMA
Income
Fund
U.S.
Government
Bond
Tax
cost
.................................................................................
$
994,533,952‌
$
1,586,410,404‌
$
1,032,720,134‌
Gross
unrealized
appreciation
..................................................................
$
20,341,471‌
$
44,013,126‌
$
45,542,360‌
Gross
unrealized
depreciation
..................................................................
(6,070,891‌)
(32,084,945‌)
(8,564,725‌)
Net
unrealized
appreciation
(depreciation)
..........................................................
$
14,270,580‌
$
11,928,181‌
$
36,977,635‌
Notes
to
Financial
Statements
(continued)
111
Notes
to
Financial
Statements
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Funds
and their
investments.
Each
Fund’s
prospectus
provides
details
of
the
risks
to
which
each
Fund
is
subject. 
Market
Risk:
Each
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
each
Fund
to
reinvest
in
lower
yielding
securities. Each
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
each
Fund’s
portfolio
will
decline
if
each
Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
each
Fund
portfolio’s
current
earnings
rate.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund's
investments.
The duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
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. A
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that a
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. A
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
each
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 a
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which a
Fund
invests. 
The
price a
Fund
could
receive
upon
the
sale
of
any
particular
portfolio
investment
may
differ
from a
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 a
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 a
Fund,
and a
Fund
could
realize
a
greater
than
expected
loss
or
lesser
than
expected
gain
upon
the
sale
of
the
investment.
A
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
Funds
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,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Funds
manage
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
Funds
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Funds’
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statements
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Funds. 
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.
For
OTC
options
purchased,
each
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
Funds
should
the
counterparty
fail
to
perform
under
the
contracts.
Options
written
by
the
Funds
do
not
typically
give
rise
to
counterparty
credit
risk,
as
options
written
generally
obligate
the
Funds,
and
not
the
counterparty,
to
perform.
The
Funds
may
be
exposed
to
counterparty
credit
risk
with
respect
to
options
written
to
the
extent
each
Fund
deposits
collateral
with
its
counterparty
to
a
written
option. 
With
exchange-traded
options
purchased
and
futures
and
centrally
cleared
swaps,
there
is
less
counterparty
credit
risk
to
the
Funds
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, a
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
Funds. 
Concentration
Risk:
 A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within certain
Fund's
portfolios
are
disclosed
in
its Schedule
of
Investments.
Certain
Funds
invest
a
significant
portion
of their
assets
in
high
yield
securities.
High
yield
securities
that
are
rated
below
investment-grade
(commonly
referred
to
as
“junk
bonds”)
or
are
unrated
may
be
deemed
speculative,
involve
greater
levels
of
risk
than
higher-rated
securities
of
similar
maturity
and
are
more
likely
to
default.
High
yield
securities
may
be
issued
by
less
creditworthy
issuers,
and
issuers
of
high
yield
securities
may
be
unable
to
meet
their
interest
or
principal
payment
obligations.
High
yield
securities
are
subject
to
extreme
price
fluctuations,
may
be
less
liquid
than
higher
rated
fixed-income
securities,
even
under
normal
economic
conditions,
and
frequently
have
redemption
features.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
112
Certain
Funds
invest
a
significant
portion
of
their
assets
in fixed-income securities and/or use
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
Funds
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates. 
Certain Funds
invest
a
significant
portion
of their
assets
in
securities
backed
by
commercial
or
residential
mortgage
loans
or
in
issuers
that
hold
mortgage
and
other
asset-
backed
securities.
When
a
Fund
concentrates
its
investments
in
this
manner,
it
assumes
a
greater
risk
of
prepayment
or
payment
extension
by
securities
issuers.
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.
Investment
percentages
in
these
securities
are
presented
in
the
Schedules
of
Investments.
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a
phase
out
of
the
London
Interbank
Offered
Rate
(“LIBOR”)
by
the
end
of
2021,
and
it
is
expected
that
LIBOR
will
cease
to
be
published
after
that
time.
The
Funds
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against,
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Funds
is
uncertain.
CAPITAL
SHARE
TRANSACTIONS 
Transactions
in
capital
shares
for
each
class
were
as
follows:
d
Year
Ended
09/30/20
Year
Ended
09/30/19
Shares
Amount
Shares
Amount
GNMA
Institutional
Shares
sold
21,783,881‌
$
207,426,644‌
15,427,334‌
$
142,988,642‌
Shares
issued
in
reinvestment
of
distributions
........................
882,155‌
8,391,822‌
864,234‌
8,003,637‌
Shares
redeemed
(13,127,218‌)
(124,488,338‌)
(15,566,731‌)
(144,024,973‌)
        Net
increase
9,538,818‌
$
91,330,128‌
724,837‌
$
6,967,306‌
Service
Shares
sold
144,213‌
$
1,362,929‌
164,494‌
$
1,526,020‌
Shares
issued
in
reinvestment
of
distributions
........................
17,432‌
165,394‌
27,198‌
251,100‌
Shares
redeemed
(425,266‌)
(4,017,245‌)
(321,603‌)
(2,989,876‌)
        Net
decrease
(263,621‌)
$
(2,488,922‌)
(129,911‌)
$
(1,212,756‌)
Investor
A
Shares
sold
and
automatic
conversion
of
shares
5,424,838‌
$
51,804,643‌
5,250,976‌
$
48,741,502‌
Shares
issued
in
reinvestment
of
distributions
........................
438,538‌
4,188,800‌
450,307‌
4,187,905‌
Shares
redeemed
(3,417,239‌)
(32,516,110‌)
(4,421,131‌)
(41,065,515‌)
        Net
increase
2,446,137‌
$
23,477,333‌
1,280,152‌
$
11,863,892‌
Investor
C
Shares
sold
1,393,639‌
$
13,236,020‌
1,163,829‌
$
10,937,269‌
Shares
issued
in
reinvestment
of
distributions
........................
79,185‌
752,969‌
91,518‌
845,219‌
Shares
redeemed
and
automatic
conversion
of
shares
(1,796,831‌)
(17,074,392‌)
(2,479,363‌)
(22,822,846‌)
        Net
decrease
(324,007‌)
$
(3,085,403‌)
(1,224,016‌)
$
(11,040,358‌)
Class
K
Shares
sold
4,121,946‌
$
38,870,562‌
3,022,864‌
$
27,813,799‌
Shares
issued
in
reinvestment
of
distributions
........................
234,383‌
2,223,384‌
142,490‌
1,318,004‌
Shares
redeemed
(2,083,158‌)
(19,798,765‌)
(578,778‌)
(5,332,217‌)
        Net
increase
2,273,171‌
$
21,295,181‌
2,586,576‌
$
23,799,586‌
Total
Net
Increase
13,670,498‌
$
130,528,317‌
3,237,638‌
$
30,377,670‌
Income
Fund
Institutional
Shares
sold
97,648,717‌
$
972,138,650‌
65,723,825‌
$
663,085,768‌
Shares
issued
in
reinvestment
of
distributions
........................
4,494,246‌
45,313,555‌
2,914,388‌
29,393,206‌
Shares
redeemed
(64,047,827‌)
(620,418,238‌)
(24,678,714‌)
(247,207,703‌)
        Net
increase
38,095,136‌
$
397,033,967‌
43,959,499‌
$
445,271,271‌
Investor
A
Shares
sold
and
automatic
conversion
of
shares
7,710,036‌
$
78,046,154‌
6,426,382‌
$
64,943,941‌
Shares
issued
in
reinvestment
of
distributions
........................
497,828‌
5,019,143‌
368,175‌
3,706,033‌
Shares
redeemed
(4,230,230‌)
(41,600,818‌)
(4,273,098‌)
(42,987,376‌)
        Net
increase
3,977,634‌
$
41,464,479‌
2,521,459‌
$
25,662,598‌
Investor
C
Shares
sold
1,022,086‌
$
10,343,775‌
1,111,478‌
$
11,196,542‌
Shares
issued
in
reinvestment
of
distributions
........................
114,660‌
1,151,515‌
115,945‌
1,164,939‌
Shares
redeemed
and
automatic
conversion
of
shares
(1,235,657‌)
(12,269,922‌)
(1,049,227‌)
(10,552,124‌)
        Net
increase
(decrease)
(98,911‌)
$
(774,632‌)
178,196‌
$
1,809,357‌
Notes
to
Financial
Statements
(continued)
113
Notes
to
Financial
Statements
(a)
On
February
24,
2020,
the
Fund's
issued
and
outstanding
Investor
C1
Shares
converted
into
Investor
A
Shares.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Funds
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.
d
Year
Ended
09/30/20
Year
Ended
09/30/19
Shares
Amount
Shares
Amount
Class
K
Shares
sold
7,800,082‌
$
78,878,095‌
6,948,483‌
$
70,078,828‌
Shares
issued
in
reinvestment
of
distributions
........................
491,477‌
4,948,309‌
231,036‌
2,339,282‌
Shares
redeemed
(3,673,497‌)
(36,147,609‌)
(981,717‌)
(9,938,096‌)
        Net
increase
4,618,062‌
$
47,678,795‌
6,197,802‌
$
62,480,014‌
Total
Net
Increase
46,591,921‌
$
485,402,609‌
52,856,956‌
$
535,223,240‌
U.S.
Government
Bond
Institutional
Shares
sold
38,104,428‌
$
417,361,174‌
10,668,766‌
$
109,831,549‌
Shares
issued
in
reinvestment
of
distributions
........................
471,328‌
5,165,188‌
384,160‌
3,965,079‌
Shares
redeemed
(21,998,760‌)
(241,508,631‌)
(7,136,526‌)
(73,080,273‌)
        Net
increase
16,576,996‌
$
181,017,731‌
3,916,400‌
$
40,716,355‌
Service
Shares
sold
103,433‌
$
1,145,971‌
751,150‌
$
7,875,541‌
Shares
issued
in
reinvestment
of
distributions
........................
6,994‌
74,917‌
6,221‌
65,067‌
Shares
redeemed
(767,518‌)
(8,476,667‌)
(54,005‌)
(556,203‌)
        Net
increase
(decrease)
(657,091‌)
$
(7,255,779‌)
703,366‌
$
7,384,405‌
Investor
A
Shares
sold
and
automatic
conversion
of
shares
22,022,095‌
$
242,950,051‌
8,716,105‌
$
89,895,499‌
Shares
issued
in
reinvestment
of
distributions
........................
519,585‌
5,686,092‌
730,163‌
7,535,350‌
Shares
redeemed
(18,627,031‌)
(205,522,613‌)
(11,304,953‌)
(116,685,677‌)
        Net
increase
(decrease)
3,914,649‌
$
43,113,530‌
(1,858,685‌)
$
(19,254,828‌)
Investor
C
Shares
sold
2,930,005‌
$
32,066,591‌
1,161,487‌
$
11,995,422‌
Shares
issued
in
reinvestment
of
distributions
........................
22,413‌
244,727‌
48,463‌
498,458‌
Shares
redeemed
and
automatic
conversion
of
shares
(3,085,379‌)
(33,732,143‌)
(2,232,542‌)
(23,016,807‌)
        Net
decrease
(132,961‌)
$
(1,420,825‌)
(1,022,592‌)
$
(10,522,927‌)
Investor
C1
(a)
Shares
sold
74,
400‌
$
789,110‌
338,307‌
$
3,502,377‌
Shares
issued
in
reinvestment
of
distributions
........................
4,103‌
43,575‌
25,010‌
256,867‌
Shares
redeemed
and
automatic
conversion
of
shares
(1,019,983‌
)
(10,944,602‌)
(1,080,651‌)
(11,093,108‌)
        Net
decrease
(941,480‌)
$
(10,111,917‌)
(717,334‌)
$
(7,333,864‌)
Class
K
Shares
sold
1,516,654‌
$
16,452,149‌
377,980‌
$
3,927,086‌
Shares
issued
in
reinvestment
of
distributions
........................
22,805‌
250,537‌
6,679‌
69,463‌
Shares
redeemed
(453,390‌)
(4,970,984‌)
(62,292‌)
(647,151‌)
        Net
increase
1,086,069‌
$
11,731,702‌
322,367‌
$
3,349,398‌
Class
R
Shares
sold
297,271‌
$
3,244,106‌
623,197‌
$
6,385,776‌
Shares
issued
in
reinvestment
of
distributions
........................
12,584‌
136,664‌
38,152‌
392,618‌
Shares
redeemed
(1,139,131‌)
(12,378,882‌)
(1,326,242‌)
(13,655,183‌)
        Net
decrease
(829,276‌)
$
(8,998,112‌)
(664,893‌)
$
(6,876,789‌)
Total
Net
Increase
19,016,906‌
$
208,076,330‌
678,629‌
$
7,461,750‌
Report
of
Independent
Registered
Public
Accounting
Firm
2020
BlackRock
Annual
Report
to
Shareholders
114
To
the
Shareholders
of
BlackRock
GNMA
Portfolio,
BlackRock
Income
Fund
and
BlackRock
U.S.
Government
Bond
Portfolio
and
the
Board
of
Trustees
of
BlackRock
Funds
V:
Opinion
on
the
Financial
Statements
and
Financial
Highlights
We
have
audited
the
accompanying
statements
of
assets
and
liabilities
of
BlackRock
GNMA
Portfolio,
BlackRock
Income
Fund
(formerly,
BlackRock
Credit
Strategies
Income
Fund)
and
BlackRock
U.S.
Government
Bond
Portfolio
of
BlackRock
Funds
V
(the
“Funds”),
including
the
schedules
of
investments,
as
of
September
30,
2020,
the
related
statements
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
Funds
as
of
September
30,
2020,
and
the
results
of
their
operations
for
the
year
then
ended,
the
changes
in
their
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,
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
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
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
Funds
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
Funds
are
not
required
to
have,
nor
were
we
engaged
to
perform,
an
audit
of
their
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
Funds’
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
September
30,
2020,
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
November
20,
2020
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
1992.
Important
Tax
Information
(unaudited)
115
Important
Tax
Information
For
corporate
shareholders,
the
percentage
of
ordinary
income
distributions
paid
during
the
fiscal
year
ended
September
30,
2020
that
qualified
for
the
dividends-received
deduction
were
as
follows:
The
following
maximum
amounts
are
hereby
designated
as
qualified
dividend
income
for
individuals
for
the
fiscal
year
ended
September
30,
2020:
For
the
fiscal
year
ended
September
30,
2020,
the
Funds
hereby
designate
the
following
maximum
amounts
allowable
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations:
The
Funds
hereby
designate
the
following
amount
of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
year
ended
September
30,
2020:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attribute
to
federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
check
with
their
tax
advisers
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
tax.
Fund
Dividend-Received
Deduction
BlackRock
Income
Fund
................................................................................................
1.09
%
Fund
Qualified
Dividend
Income
BlackRock
Income
Fund
..............................................................................................
$
2,333,135
Fund
Interest-Related
Dividends
BlackRock
GNMA
Portfolio
............................................................................................
$
17,962,881
BlackRock
Income
Fund
..............................................................................................
32,943,483
BlackRock
U.S.
Government
Bond
Portfolio
.................................................................................
13,155,25
1
Fund
Federal
Obligation
Interest
BlackRock
GNMA
Portfolio
............................................................................................
$
98,770
BlackRock
Income
Fund
..............................................................................................
851
,
824
BlackRock
U.S.
Government
Bond
Portfolio
.................................................................................
5,540,743
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
2020
BlackRock
Annual
Report
to
Shareholders
116
The
Board
of
Trustees
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Funds
V
(the
“Trust”)
met
on
April
16,
2020
(the
“April
Meeting”)
and
May
20-21,
2020
(the
“May
Meeting”)
to
consider
the
approval
of
the
investment
advisory
agreement
(the
“Advisory
Agreement”)
between
the
Trust,
on
behalf
of
BlackRock
Income
Fund
(the
“Income
Fund”),
BlackRock
GNMA
Portfolio
(the
“GNMA
Portfolio”)
and
BlackRock
U.S.
Government
Bond
Portfolio
(the
“U.S.
Government
Bond
Portfolio”
and
together
with
the
Income
Fund
and
the
GNMA
Portfolio,
the
“Funds”
and
each,
a
“Fund”),
and
BlackRock
Advisors,
LLC
(the
“Manager”),
each
Fund’s
investment
advisor.
The
Board
also
considered
the
approval
of
the
sub-advisory
agreements
(the
“Sub-Advisory
Agreements”)
between
(1)
the
Manager
and
BlackRock
International
Limited
(“BIL”),
with
respect
to
the
Income
Fund
and
(2)
BlackRock
(Singapore)
Limited
(“BRS”
and
together
with
BIL,
the
“Sub-Advisors”),
with
respect
to
the
Income
Fund.
The
Manager
and
the
Sub-Advisors
are
referred
to
herein
as
“BlackRock.”
The
Advisory
Agreement
and
the
Sub-Advisory
Agreements
are
referred
to
herein
as
the
“Agreements.”
Activities
and
Composition
of
the
Board
On
the
date
of
the
May
Meeting,
the
Board
consisted
of
ten
individuals,
eight
of
whom
were
not
“interested
persons”
of
the
Trust
as
defined
in
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”)
(the
“Independent
Board
Members”).
The
Board
Members
are
responsible
for
the
oversight
of
the
operations
of
each
Fund
and
perform
the
various
duties
imposed
on
the
directors
of
investment
companies
by
the
1940
Act.
The
Independent
Board
Members
have
retained
independent
legal
counsel
to
assist
them
in
connection
with
their
duties.
The
Co-Chairs
of
the
Board
are
Independent
Board
Members.
The
Board
has
established
five
standing
committees:
an
Audit
Committee,
a
Governance
and
Nominating
Committee,
a
Compliance
Committee,
a
Performance
Oversight
Committee
and
an
Executive
Committee,
each
of
which
is
chaired
by
an
Independent
Board
Member
and
composed
of
Independent
Board
Members
(except
for
the
Executive
Committee,
which
also
has
one
interested
Board
Member).
The
Agreements
Consistent
with
the
requirements
of
the
1940
Act,
the
Board
considers
the
continuation
of
the
Agreements
on
an
annual
basis.
The
Board
has
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
and
additional
in-person
and
telephonic
meetings
throughout
the
year,
as
needed.
While
the
Board
also
has
a
fifth
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
Agreements,
the
Board’s
consideration
entails
a
year-long
deliberative
process
whereby
the
Board
and
its
committees
assess
BlackRock’s
services
to
each
Fund.
In
particular,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
each
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
each
Fund’s
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock’s
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considers
information
that
is
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreements,
including
the
services
and
support
provided
by
BlackRock
to
each
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
This
additional
information
is
discussed
further
in
the
section
titled
“Board
Considerations
in
Approving
the
Agreements.”
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
applicable
benchmarks,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management’s
and
portfolio
managers’
analyses
of
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
each
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
each
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
each
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
each
Fund’s
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services;
(g)
BlackRock’s
and
other
service
providers’
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock’s
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
execution
quality
of
portfolio
transactions;
(j)
BlackRock’s
implementation
of
each
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
(“ETF”),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
each
Fund;
(l)
BlackRock’s
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals’
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock’s
business.
Board
Considerations
in
Approving
the
Agreements
The
Approval
Process:
Prior
to
the
April
Meeting,
the
Board
requested
and
received
materials
specifically
relating
to
the
Agreements.
The
Independent
Board
Members
are
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
April
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
each
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
each
Fund
as
compared
with
a
peer
group
of
funds
(“Performance
Peers”);
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge’s
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreements
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts,
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
each
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
each
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
each
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock’s
and
each
Fund’s
operations.
At
the
April
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreements.
As
a
result
of
the
discussions
that
occurred
during
the
April
Meeting,
and
as
a
culmination
of
the
Board’s
year-long
deliberative
process,
the
Board
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
May
Meeting.
Topics
covered
included:
(a)
the
methodology
for
measuring
estimated
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
117
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
fund
profitability;
(b)
economies
of
scale;
(c)
fund
expenses
and
potential
fee
waivers;
and
(d)
differences
in
services
provided
and
management
fees
between
open-end
funds
and
other
product
channels.
At
the
May
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
each
Fund;
(d)
each
Fund’s
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock’s
relationship
with
each
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock’s
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock’s
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
Board
did
not
identify
any
particular
information
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
considered.
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock
:
The
Board,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services,
and
the
resulting
performance
of
each
Fund.
Throughout
the
year,
the
Board
compared
Fund
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmarks,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock’s
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
each
Fund’s
portfolio
management
team
discussing
each
Fund’s
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
number,
education
and
experience
of
investment
personnel
generally
and
each
Fund’s
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock’s
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock’s
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock’s
compensation
structure
with
respect
to
each
Fund’s
portfolio
management
team
and
BlackRock’s
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
each
Fund.
BlackRock
and
its
affiliates
provide
each
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
each
Fund
by
third-parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
each
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
each
Fund
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers
including,
among
others,
each
Fund’s
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
each
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
each
Fund’s
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock’s
fund
administration,
shareholder
services,
and
legal
&
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
B.
The
Investment
Performance
of
each
Fund
and
BlackRock:
The
Board,
including
the
Independent
Board
Members,
also
reviewed
and
considered
the
performance
history
of
each
Fund.
In
preparation
for
the
April
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
each
Fund’s
performance
as
of
December
31,
2019,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers.
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
each
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
the
Income
Fund
ranked
in
the
first
quartile
against
its
Performance
Peers.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
the
GNMA
Portfolio
ranked
in
the
first,
third
and
second
quartiles,
respectively,
against
its
Performance
Peers.
The
Board
and
BlackRock
reviewed
the
GNMA
Portfolio’s
underperformance
relative
to
its
Performance
Peers
during
the
applicable
period.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
the
U.S.
Government
Bond
Portfolio
ranked
in
the
first
quartile
against
its
Performance
Peers.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
each
Fund:
The
Board,
including
the
Independent
Board
Members,
reviewed
each
Fund’s
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
each
Fund’s
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund’s
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
the
services
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
118
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
The
Board
received
and
reviewed
statements
relating
to
BlackRock’s
financial
condition.
The
Board
reviewed
BlackRock’s
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
each
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
each
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2019
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock’s
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock’s
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock’s
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreements
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock’s
commitment
of
time,
assumption
of
risk,
and
liability
profile
in
servicing
each
Fund,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
noted
that
the
Income
Fund’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
second
quartiles,
respectively,
relative
to
the
Income
Fund’s
Expense
Peers.
The
Board
also
noted
that
the
Income
Fund
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Income
Fund
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Income
Fund
were
to
decrease,
the
Income
Fund
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Income
Fund’s
total
expenses
as
a
percentage
of
the
Income
Fund’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
the
GNMA
Portfolio’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile,
relative
to
the
GNMA
Portfolio’s
Expense
Peers.
The
Board
also
noted
that
the
GNMA
Portfolio
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
GNMA
Portfolio
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
GNMA
Portfolio
were
to
decrease,
the
GNMA
Portfolio
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
GNMA
Portfolio’s
total
expenses
as
a
percentage
of
the
GNMA
Portfolio’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
the
U.S.
Government
Bond
Portfolio’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
first
and
second
quartiles,
respectively,
relative
to
the
U.S.
Government
Bond
Portfolio’s
Expense
Peers.
The
Board
also
noted
that
the
U.S.
Government
Bond
Portfolio
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
U.S.
Government
Bond
Portfolio
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
U.S.
Government
Bond
Portfolio
were
to
decrease,
the
U.S.
Government
Bond
Portfolio
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
U.S.
Government
Bond
Portfolio’s
total
expenses
as
a
percentage
of
the
U.S.
Government
Bond
Portfolio’s
average
daily
net
assets
on
a
class-by-class
basis.
D.
Economies
of
Scale
:
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
each
Fund
increase,
including
the
existence
of
fee
waivers
and/or
expense
caps,
as
applicable,
noting
that
any
contractual
fee
waivers
and
contractual
expense
caps
had
been
approved
by
the
Board.
In
its
consideration,
the
Board
further
considered
the
continuation
and/or
implementation
of
fee
waivers
and/or
expense
caps,
as
applicable.
The
Board
also
considered
the
extent
to
which
each
Fund
benefits
from
such
economies
of
scale
in
a
variety
of
ways,
and
whether
there
should
be
changes
in
the
advisory
fee
rate
or
breakpoint
structure
in
order
to
enable
each
Fund
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
each
Fund’s
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members:
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
“fall-
out”
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock’s
respective
relationships
with
each
Fund,
both
tangible
and
intangible,
such
as
BlackRock’s
ability
to
leverage
its
investment
professionals
who
manage
other
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock’s
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock’s
affiliates
as
service
providers
to
each
Fund,
including
for
administrative,
distribution,
securities
lending
and
cash
management
services.
The
Board
also
considered
BlackRock’s
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreements,
the
Board
also
received
information
regarding
BlackRock’s
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
each
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
each
Fund.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
(continued)
119
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreements
Conclusion
The
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreement
between
the
Manager
and
the
Trust,
on
behalf
of
each
Fund,
for
a
one-year
term
ending
June
30,
2021,
and
the
Sub-Advisory
Agreements
between
the
Manager
and
the
Sub-Advisors,
with
respect
to
the
Income
Fund,
for
a
one-year
term
ending
June
30,
2021.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreements
were
fair
and
reasonable
and
in
the
best
interest
of
each
Fund
and
its
shareholders.
In
arriving
at
its
decision
to
approve
the
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
Agreement
2020
BlackRock
Annual
Report
to
Shareholders
120
The
Board
of
Trustees
(the
“Board,”
and
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Funds
V
(the
“Trust”),
on
behalf
of
its
series
BlackRock
U.S.
Government
Bond
Portfolio
(the
“Fund”),
met
on
April
16,
2020
(the
“April
Meeting”)
to
consider
the
initial
approval
of
the
sub-advisory
agreement
(the
“Sub-Advisory
Agreement”)
between
BlackRock
Advisors,
LLC
(the
“Manager”),
the
Fund’s
investment
advisor,
and
BlackRock
International
Limited,
with
respect
to
the
Fund.
The
Sub-
Advisory
Agreement
was
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
April
Meeting,
the
Board
consisted
of
ten
individuals,
eight
of
whom
were
not
“interested
persons”
of
the
Trust
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
Agreement.
At
the
April
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
proposed
Sub-Advisory
Agreement.
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
annual
shareholder
report
for
the
reporting
period
ended
September
30,
2019.
The
factors
considered
by
the
Board
at
the
April
Meeting
in
connection
with
approval
of
the
proposed
Sub-Advisory
Agreement
were
substantially
the
same
as
the
factors
considered
at
the
May
and
June
Meetings.
Following
discussion,
all
the
Board
Members
present
at
the
April
Meeting,
including
all
the
Independent
Board
Members
present,
approved
the
Sub-Advisory
Agreement
between
the
Manager
and
BlackRock
International
Limited,
with
respect
to
the
Fund
for
a
two-year
term
beginning
on
the
effective
date
of
the
Sub-Advisory
Agreement.
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
Agreement
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
Agreement,
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.
Trustee
and
Officer
Information
121
Trustee
and
Officer
Information
Independent
Trustees
(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
Trustee
(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.
87
RICs
consisting
of
111
Portfolios
None
Karen
P.
Robards
1950
Co-Chair
of
the
Board
and
Trustee
(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.
87
RICs
consisting
of
111
Portfolios
Greenhill
&
Co.,
Inc.;
AtriCure,
Inc.
(medical
devices)
from
2000
until
2017
Michael
J.
Castellano
1946
Trustee
(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
2017
to
September
2020;
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)
from
2015
to
June
2020.
87
RICs
consisting
of
111
Portfolios
None
Cynthia
L.
Egan
1955
Trustee
(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.
87
RICs
consisting
of
111
Portfolios
Unum
(insurance);
The
Hanover
Insurance
Group
(insurance);
Envestnet
(investment
platform)
from
2013
until
2016
Frank
J.
Fabozzi
(d)
1948
Trustee
(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;
Visiting
Professor,
Rutgers
University
for
the
Spring
2019
semester;
Visiting
Professor,
New
York
University
for
the
2019
academic
year.
88
RICs
consisting
of
112
Portfolios
None
R.
Glenn
Hubbard
1958
Trustee
(Since
2019)
Dean,
Columbia
Business
School
from
2004
to
2019;
Faculty
member,
Columbia
Business
School
since
1988.
87
RICs
consisting
of
111
Portfolios
ADP
(data
and
information
services);
Metropolitan
Life
Insurance
Company
(insurance);
KKR
Financial
Corporation
(finance)
from
2004
until
2014
W.
Carl
Kester
(d)
1951
Trustee
(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.
88
RICs
consisting
of
112
Portfolios
None
Catherine
A.
Lynch
(d)
1961
Trustee
(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.
88
RICs
consisting
of
112
Portfolios
None
Trustee
and
Officer
Information
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
122
Interested
Trustees
(a)(e)
(a)
The
address
of
each
Trustee
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Each
Independent
Trustee
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
Trust’s
by-laws
or
charter
or
statute,
or
until
December
31
of
the
year
in
which
he
or
she
turns
75.
Trustees
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
Trust’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
Trustees
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
Trustees
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
Trustees
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
Trust
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.
Robert
Fairbairn
1965
Trustee
(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.
122
RICs
consisting
of
269
Portfolios
None
John
M.
Perlowski
(d)
1964
Trustee
(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.
123
RICs
consisting
of
270
Portfolios
None
Trustee
and
Officer
Information
(continued)
123
Trustee
and
Officer
Information
Officers
Who
Are
Not
Trustees
(a)
(a)
The
address
of
each
Officer
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Officers
of
the
Trust
serve
at
the
pleasure
of
the
Board.
Further
information
about
the
Trust’s
Trustees
and
Officers
is
available
in
the
Trust’s
Statement
of
Additional
Information,
which
can
be
obtained
without
charge
by
calling
(800)
441-7762.
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
Americas
Product
Development
and
Governance
for
BlackRock’s
Global
Product
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
from
2019
to
2020;
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.
Additional
Information
2020
BlackRock
Annual
Report
to
Shareholders
124
General
Information
Householding
The
Funds
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ended
June
30
is
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Additional
Information
(continued)
125
Additional
Information
BlackRock
Privacy
Principles
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need
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information.
BlackRock
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physical,
electronic
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non-public
personal
information
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its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Advisers
BlackRock
International
Limited
(a)
Edinburgh,
EH3
8BL
United
Kingdom
BlackRock
(Singapore)
Limited
(b)
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
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
(a)
For
BlackRock
Income
Fund
and
BlackRock
U.S.
Government
Bond
Portfolio.
(b)
For
BlackRock
Income
Fund.
Glossary
of
Terms
Used
in
this
Report
2020
BlackRock
Annual
Report
to
Shareholders
126
Currency
AUD
Australian
Dollar
BRL
Brazilian
Real
CAD
Canadian
Dollar
CHF
Swiss
Franc
CLP
Chilean
Peso
CNY
Chinese
Yuan
COP
Colombian
Peso
EUR
Euro
GBP
British
Pound
HKD
Hong
Kong
Dollar
IDR
Indonesian
Rupiah
JPY
Japanese
Yen
KRW
South
Korean
Won
KZT
Kazakhstani
Tenge
MXN
Mexican
Peso
PLN
Polish
Zloty
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
DAC
Designated
Activity
Company
ETF
Exchange-Traded
Fund
EURIBOR
Euro
Interbank
Offered
Rate
GUKG1
UK
Government
Bond
1
Year
Note
Generic
Bid
Yield
LIBOR
London
Interbank
Offered
Rate
MSCI
Morgan
Stanley
Capital
International
MXIBTIIE
Mexico
Interbank
TIIE
28-Day
OTC
Over-the-counter
PCL
Public
Company
Limited
PIK
Payment-In-Kind
PJSC
Public
Joint
Stock
Company
REIT
Real
Estate
Investment
Trust
S&P
Standard
&
Poor's
SOFR
Secured
Overnight
Financing
Rate
TBA
To-be-announced
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Investment
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2020
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Low
Duration
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Beginning
on
January
1,
2021,
as
permitted
by
regulations
adopted
by
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Securities
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Exchange
Commission,
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Fund’s
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Please
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Dear
Shareholder,
The
12-month
reporting
period
as
of
September
30,
2020
has
been
a
time
of
sudden
change
in
global
financial
markets,
as
the
emergence
and
spread
of
the
coronavirus
(or
“COVID-19”)
led
to
a
vast
disruption
in
the
global
economy
and
financial
markets.
Prior
to
the
outbreak
of
the
virus,
U.S.
equities
and
bonds
both
delivered
impressive
returns,
despite
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.
But
as
the
threat
from
the
coronavirus
became
more
apparent
throughout
February
and
March
2020,
countries
around
the
world
took
economically
disruptive
countermeasures.
Stay-at-home
orders
and
closures
of
non-essential
businesses
became
widespread,
many
workers
were
laid
off,
and
unemployment
claims
spiked,
causing
a
global
recession
and
a
sharp
fall
in
equity
prices.
After
markets
hit
their
lowest
point
during
the
reporting
period
in
late
March
2020,
a
steady
recovery
ensued,
as
businesses
began
to
re-open
and
governments
learned
to
adapt
to
life
with
the
virus.
Equity
prices
continued
to
rise
throughout
the
summer,
fed
by
strong
fiscal
and
monetary
support
and
improving
economic
indicators.
Many
equity
indices
neared
or
surpassed
all-time
highs
in
early
September
2020
before
retreating
amid
concerns
about
a
second
wave
of
infections.
In
the
United
States,
large-capitalization
stocks
advanced,
outperforming
small-capitalization
stocks,
which
gained
only
marginally
during
the
reporting
period.
International
equities
from
developed
economies
were
nearly
flat,
lagging
emerging
market
stocks,
which
rebounded
sharply.
During
the
market
downturn,
the
performance
of
different
types
of
fixed-income
securities
initially
diverged
due
to
a
reduced
investor
appetite
for
risk.
U.S.
Treasuries
benefited
from
the
risk-off
environment,
and
posted
solid
returns,
as
the
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
touched
an
all-time
low.
In
the
corporate
bond
market,
support
from
the
U.S.
Federal
Reserve
(the
“Fed”)
assuaged
credit
concerns
and
both
investment-grade
and
high-yield
bonds
recovered
to
post
positive
returns.
The
Fed
reduced
short-term
interest
rates
in
late
2019
to
support
slowing
economic
growth.
After
the
coronavirus
outbreak,
the
Fed
instituted
an
additional
two
emergency
rate
cuts,
pushing
short-term
interest
rates
close
to
zero.
To
stabilize
credit
markets,
the
Fed
also
implemented
a
new
bond-buying
program,
as
did
several
other
central
banks
around
the
world,
including
the
European
Central
Bank
and
the
Bank
of
Japan.
Looking
ahead,
while
coronavirus-related
disruptions
have
clearly
hindered
worldwide
economic
growth,
we
believe
that
the
global
expansion
is
likely
to
continue
as
economic
activity
resumes.
Several
risks
remain,
however,
including
a
potential
resurgence
of
the
coronavirus
amid
loosened
restrictions,
policy
fatigue
among
governments
already
deep
into
deficit
spending,
and
structural
damage
to
the
financial
system
from
lengthy
economic
interruptions.
Overall,
we
favor
a
moderately
positive
stance
toward
risk,
and
in
particular
toward
credit
given
the
extraordinary
central
bank
measures
taken
in
recent
months.
This
support
extends
beyond
investment-grade
corporates
and
into
high-yield,
leading
to
attractive
opportunities
in
that
end
of
the
market.
We
believe
that
international
diversification
and
a
focus
on
sustainability
can
help
provide
portfolio
resilience,
and
the
disruption
created
by
the
coronavirus
appears
to
be
accelerating
the
shift
toward
sustainable
investments.
We
remain
neutral
on
equities
overall
while
favoring
European
stocks,
which
are
poised
for
cyclical
upside
as
re-openings
continue.
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,
Rob
Kapito
President,
BlackRock
Advisors,
LLC
The
Markets
in
Review
Rob
Kapito
President,
BlackRock
Advisors,
LLC
Past
performance
is
not
an
indication
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Total
Returns
as
of
September
30,
2020
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
31.31%
15.15%
U.S.
small
cap
equities
(Russell
2000
®
Index)
31.60
0.39
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
20.39
0.49
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
29.37
10.54
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.06
1.10
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
0.71
10.74
U.S.
investment
grade
bonds
(Bloomberg
Barclays
U.S.
Aggregate
Bond
Index)
3.53
6.98
Tax-exempt
municipal
bonds
(S&P
Municipal
Bond
Index)
3.78
3.85
U.S.
high
yield
bonds
(Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
15.18
3.20
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Fund
Summaries
.......................................................................................................
4
The
Benefits
and
Risks
of
Leveraging
..........................................................................................
13
About
Fund
Performance
..................................................................................................
14
Disclosure
of
Expenses
...................................................................................................
15
Derivative
Financial
Instruments
.............................................................................................
15
Financial
Statements:
Schedules
of
Investments
...............................................................................................
16
Statements
of
Assets
and
Liabilities
.........................................................................................
107
Statements
of
Operations
................................................................................................
110
Statements
of
Changes
in
Net
Assets
........................................................................................
111
Financial
Highlights
.....................................................................................................
113
Notes
to
Financial
Statements
...............................................................................................
132
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
153
Important
Tax
Information
.................................................................................................
154
Disclosure
of
Investment
Advisory
Agreement
.....................................................................................
155
Trustee
and
Officer
Information
..............................................................................................
159
Additional
Information
....................................................................................................
162
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
164
Fund
Summary
as
of
September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
4
BlackRock
Core
Bond
Portfolio
Investment
Objective
BlackRock
Core
Bond
Portfolio’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
September
30,
2020,
all
of
the
Fund’s
share
classes
outperformed
its
benchmark,
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
with
the
exception
of
Investor
C
and
Class
R
Shares,
which
underperformed.
What
factors
influenced
performance?
During
the
12-month
period,
the
Fund’s
active
positioning
with
respect
to
duration
(sensitivity
to
interest
rate
changes)
was
a
leading
positive
contributor
to
performance
relative
to
the
benchmark.
In
addition,
overweight
positions
to
credit-oriented
sectors
including
investment
grade
corporate
bonds
and
emerging
market
debt
contributed
positively
to
relative
performance,
along
with
an
overweight
to
agency
mortgage-backed
securities
(“MBS”).
Overweight
positioning
within
U.S.
municipal
bonds
and
commercial
mortgage-backed
securities
detracted
slightly
from
performance
as
COVID-19-related
conditions
put
pressure
on
both
sectors.
The
Fund
held
a
7.7%
cash
position
at
the
end
of
the
period.
The
Fund
has
often
held
an
elevated
cash
position
as
part
of
its
“barbell”
approach
to
maturity
structure,
holding
cash
instruments
along
with
other
income-generating
securities
in
the
portfolio
given
the
decreased
hedging
effectiveness
from
duration.
The
Fund’s
cash
position
did
not
have
a
material
impact
on
Fund
performance
during
the
period.
Describe
recent
portfolio
activity.
During
the
fourth
quarter
of
2019,
the
Fund’s
duration
was
slightly
reduced,
but
a
small
overweight
in
duration
versus
the
benchmark
was
maintained.
Duration
exposure
was
reduced
mainly
from
the
long
end
of
the
yield
curve,
with
some
of
the
risk
shifted
to
the
front
end
of
the
curve.
As
exposures
in
investment
grade
credits
were
reduced
given
valuation
concerns,
overweight
positions
in
agency
MBS
and
inflation-protected
bonds
were
increased.
The
Fund
favored
agency
MBS
on
the
view
that
demand
from
banks
and
foreign
investors
should
remain
supportive,
and
prepayment
speeds
will
likely
be
slower
than
the
market
expects.
The
investment
adviser
also
anticipated
slow
and
steady
increases
in
inflation
driven
mainly
by
a
weaker
U.S.
dollar,
a
strong
labor
market
and
a
bottoming
out
of
global
growth.
In
the
first
quarter
of
2020,
the
tone
of
the
markets
took
a
sharply
negative
turn
as
the
COVID-19
pandemic
emerged,
essentially
bringing
much
of
the
global
economy
to
a
halt.
With
investors
reaching
for
cash,
liquidity
became
a
major
issue
across
fixed-income
markets.
Given
the
massive
magnitude
of
the
economic
shock,
while
still
holding
a
duration
overweight
versus
the
benchmark,
the
Fund
eliminated
its
overweight
within
the
front
end
of
the
yield
curve
and
added
to
the
three-
to
five-year
and
the
seven-
to
10-year
portions
of
the
yield
curve.
After
meaningfully
reducing
exposure
to
agency
MBS
in
February
on
valuation
concerns,
the
Fund
returned
to
an
overweight
position
in
mid-March
as
mortgage
spreads
widened
alongside
other
risk
assets.
The
sector
has
since
benefited
as
the
Fed
announced
an
MBS
purchase
program.
Securitized
assets
experienced
significant
selling
pressure
in
March
as
investors
sought
liquidity.
The
Fund’s
positioning
in
securitized
assets
focused
on
higher
quality
assets
with
strong
levels
of
protection.
For
the
second
half
of
the
12-month
period,
the
Fund's
duration
underweight
stance
was
slightly
increased
versus
the
benchmark,
mainly
at
the
long
end
of
the
yield
curve
(15
years
and
over),
given
expectations
for
increased
issuance.
In
addition,
the
Fund’s
overweight
positions
in
emerging
markets,
European
sovereign
debt
and
non-agency
MBS
were
increased
on
the
view
that
each
of
these
segments
continues
to
possess
reasonable
upside
potential.
At
the
same
time,
the
Fund’s
positioning
within
agency
MBS
was
reduced.
Describe
portfolio
positioning
at
period
end.
At
period
end,
the
Fund
maintained
a
modest
duration
underweight
versus
the
benchmark,
as
U.S.
rates
continued
to
move
to
historically
low
levels.
Most
of
the
Fund’s
underweights
were
positioned
at
the
long
end
of
the
yield
curve
given
the
increasing
level
of
issuance
expected,
with
a
small
overweight
in
the
seven-
to
10-year
portion
of
the
yield
curve.
The
investment
adviser
also
held
a
constructive
view
regarding
inflation-protected
bonds
given
the
recent
strength
of
the
Consumer
Price
Index
and
the
Fed's
shift
to
a
more
flexible
approach
in
evaluating
inflation
levels.
Given
tight
spread
levels
across
high
quality
credit
names,
the
Fund
continued
to
trade
opportunistically
within
sectors
outside
of
the
realm
of
Fed
policy,
including
a
slight
overweight
in
select
segments
of
emerging
market
external
debt
given
attractive
valuations.
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.
Fund
Summary
as
of
September
30,
2020
(continued)
5
Fund
Summary
BlackRock
Core
Bond
Portfolio
Total
Return
based
on
a
$10,000
Investment
Performance
Summary
for
the
Period
Ended
September
30,
2020
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
The
Fund
normally
invests
at
least
80%
of
its
assets
in
bonds
and
maintains
an
average
portfolio
duration
that
is
within
±20%
of
the
duration
of
the
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
(the
“benchmark”).
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
Core
Bond
Portfolio
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Funds
II,
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.
Average
Annual
Total
Returns
(a)
1
Year
5
Years
10
Years
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
Institutional
......................
1.40‌%
1.28‌%
6.34‌%
7.42‌%
N/A‌
4.24‌%
N/A‌
3.81‌%
N/A‌
Service
........................
1.15‌
0.98‌
6.21‌
7.16‌
N/A‌
3.94‌
N/A‌
3.51‌
N/A‌
Investor
A
.......................
1.11‌
0.98‌
6.20‌
7.15‌
2.86‌%
3.94‌
3.10‌%
3.51‌
3.08‌%
Investor
C
.......................
0.41‌
0.33‌
5.83‌
6.37‌
5.37‌
3.17‌
3.17‌
2.74‌
2.74‌
Class
K
........................
1.45‌
1.39‌
6.35‌
7.46‌
N/A‌
4.29‌
N/A‌
3.90‌
N/A‌
Class
R
........................
0.91‌
0.74‌
6.07‌
6.88‌
N/A‌
3.70‌
N/A‌
3.24‌
N/A‌
Bloomberg
Barclays
U.S.
Aggregate
Bond
Index
.....................
—‌
—‌
3.53‌
6.98‌
N/A‌
4.18‌
N/A‌
3.64‌
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
on
page
14
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
N/A
–
Not
applicable
as
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.
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
6
BlackRock
Core
Bond
Portfolio
Expense
Example
Portfolio
Information
Actual
Hypothetical
(a)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
1,063.40‌
$
2.22‌
$
1,000.00‌
$
1,022.85‌
$
2.17‌
0.43‌%
Service
..................................
1,000.00‌
1,062.10‌
3.51‌
1,000.00‌
1,021.60‌
3.44‌
0.68‌
Investor
A
................................
1,000.00‌
1,062.00‌
3.51‌
1,000.00‌
1,021.60‌
3.44‌
0.68‌
Investor
C
................................
1,000.00‌
1,058.30‌
7.36‌
1,000.00‌
1,017.85‌
7.21‌
1.43‌
Class
K
..................................
1,000.00‌
1,063.50‌
1.96‌
1,000.00‌
1,023.10‌
1.92‌
0.38‌
Class
R
..................................
1,000.00‌
1,060.70‌
4.79‌
1,000.00‌
1,020.35‌
4.70‌
0.93‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
366.
(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
183/366
(to
reflect
the
one-half
year
period
shown).
See
“Disclosure
of
Expenses”
on
page
15
for
further
information
on
how
expenses
were
calculated.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
34‌
%
U.S.
Government
Sponsored
Agency
Securities
..............
32‌
U.S.
Treasury
Obligations
.............................
15‌
Asset-Backed
Securities
..............................
7‌
Foreign
Government
Obligations
........................
5‌
Non-Agency
Mortgage-Backed
Securities
..................
4‌
Municipal
Bonds
...................................
3‌
Capital
Trusts
.....................................
—‌
(b)
Foreign
Agency
Obligations
............................
—‌
(b)
Other
Interests
....................................
—‌
(b)
(a)
Excludes
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)
......................................
54‌
%
AA/Aa
.........................................
6‌
A
............................................
19‌
BBB/Baa
.......................................
20‌
BB/Ba
.........................................
—‌
(d)
CCC/
Caa
.......................................
—‌
(d)
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)
Excludes
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.
Fund
Summary
as
of
September
30,
2020
7
Fund
Summary
BlackRock
High
Yield
Bond
Portfolio
Investment
Objective
BlackRock
High
Yield
Bond
Portfolio’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
September
30,
2020,
the
Fund
underperformed
its
benchmark,
the
Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index.
What
factors
influenced
performance?
During
the
period,
security
selection
within
the
independent
energy,
midstream
and
banking
sectors
detracted
from
relative
performance.
From
an
asset
allocation
perspective,
out-of-benchmark
positions
in
both
high
yield
index
products
and
bank
loans
weighed
on
Fund
returns.
By
credit
rating,
selection
within
BB-rated
and
B-rated
names
constrained
performance.
Conversely,
security
selection
within
the
oil
field
services
and
technology
sectors
added
to
Fund
returns,
as
did
an
underweight
to
transportation
services.
By
rating,
the
Fund’s
tactical
allocation
to
BBB-rated
names
contributed,
along
with
strong
security
selection
within
CCC-rated
credits.
From
an
asset
allocation
perspective,
the
Fund’s
out-of-benchmark
allocation
to
investment
grade
bonds
proved
beneficial.
Describe
recent
portfolio
activity.
The
portfolio’s
overall
themes
remained
the
same
during
the
period,
as
the
Fund
maintained
an
underweight
to
BB-rated
securities,
an
overweight
in
select
CCC-rated
issues
and
underweights
to
energy
and
consumer
cyclicals.
From
a
quality
perspective,
exposure
to
investment
grade
credits
was
increased
throughout
the
period,
particularly
at
the
end
of
March
as
investment
grade
new
issues
were
well
received
by
the
market
at
that
time.
However,
since
March
the
Fund
roughly
halved
this
exposure
given
that
high
yield
issuance
has
expanded
and
high
yield
bonds
have
become
more
attractively
valued.
Other
meaningful
out-of-benchmark
allocations
included
floating
rate
loan
interests
(“bank
loans”)
and
high
yield
liquid
products.
From
a
sector
perspective,
the
Fund
increased
exposures
within
the
technology,
independent
energy
and
cable
&
satellite
sectors,
while
reducing
holdings
within
banking,
finance
companies
and
construction
machinery.
Describe
portfolio
positioning
at
period
end.
Overall,
the
Fund
remained
underweight
in
BB-rated
credits,
overweight
in
single-B
issuers
and
overweight
in
select
CCC-rated
bonds
with
improving
credit
positions,
specific
catalysts
or
attractive
yields.
Importantly,
the
Fund
maintained
underweights
to
the
market’s
“tails”
–
both
the
higher-yielding
segment
that
contains
a
larger
concentration
of
stressed
assets,
and
the
lower-yielding
portion
where
spreads
do
not
provide
high
income.
By
sector,
the
Fund’s
largest
overweights
included
technology,
aerospace
&
defense
and
banking,
while
the
most
significant
underweights
were
to
media
&
entertainment,
finance
companies
and
home
construction.
Within
energy,
the
Fund
was
underweight
across
midstream,
independent
energy
and
oil
field
services.
Additionally,
the
Fund
continued
to
maintain
allocations
to
bank
loans
and
high
yield
liquid
products.
Lastly,
investment
grade
exposure
was
the
Fund’s
most
significant
tactical
allocation,
largely
comprised
of
second-quarter
2020
new-issue
transaction
where
the
investment
adviser
saw
upside
price
potential
based
on
relative
value.
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.
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
8
BlackRock
High
Yield
Bond
Portfolio
Total
Return
based
on
a
$10,000
Investment
Performance
Summary
for
the
Period
Ended
September
30,
2020
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
The
Fund
invests
primarily
in
non-investment
grade
bonds
with
maturities
of
ten
years
or
less.
The
Fund
normally
invests
at
least
80%
of
its
assets
in
high
yield
bonds.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
High
Yield
Bond
Portfolio
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Funds
II,
through
a
tax-free
reorganization
(the
“Reorganization”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
(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
percent
of
the
index.
Average
Annual
Total
Returns
(a)
1
Year
5
Years
10
Years
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
Institutional
......................
4.54‌%
4.53‌%
15.00‌%
2.21‌%
N/A‌
6.14‌%
N/A‌
6.54‌%
N/A‌
Service
........................
4.26‌
4.25‌
14.83‌
2.08‌
N/A‌
5.86‌
N/A‌
6.21‌
N/A‌
Investor
A
.......................
4.05‌
4.04‌
14.83‌
1.90‌
(2.18‌)%
5.83‌
4.97‌%
6.20‌
5.77‌%
Investor
C
.......................
3.51‌
3.49‌
14.41‌
1.19‌
0.22‌
5.04‌
5.04‌
5.42‌
5.42‌
Class
K
........................
4.63‌
4.62‌
15.04‌
2.46‌
N/A‌
6.27‌
N/A‌
6.64‌
N/A‌
Class
R
........................
3.93‌
3.92‌
14.68‌
1.64‌
N/A‌
5.48‌
N/A‌
5.87‌
N/A‌
Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index
.....
—‌
—‌
15.18‌
3.20‌
N/A‌
6.78‌
N/A‌
6.46‌
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
on
page
14
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees.
N/A
–
Not
applicable
as
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.
Fund
Summary
as
of
September
30,
2020
(continued)
9
Fund
Summary
BlackRock
High
Yield
Bond
Portfolio
Expense
Example
Portfolio
Information
Actual
Hypothetical
(a)
Including
Interest
Expense
Excluding
Interest
Expense
Including
Interest
Expense
Excluding
Interest
Expense
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Expenses
Paid
During
the
Period
(c)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(c)
Institutional
...............
$
1,000.00‌
$
1,150.00‌
$
3.06‌
$
3.06‌
$
1,000.00‌
$
1,022.15‌
$
2.88‌
$
1,022.15‌
$
2.88‌
Service
.................
1,000.00‌
1,148.30‌
4.51‌
4.51‌
1,000.00‌
1,020.80‌
4.24‌
1,020.80‌
4.24‌
Investor
A
................
1,000.00‌
1,148.30‌
4.73‌
4.73‌
1,000.00‌
1,020.60‌
4.45‌
1,020.60‌
4.45‌
Investor
C
................
1,000.00‌
1,144.10‌
8.47‌
8.47‌
1,000.00‌
1,017.10‌
7.97‌
1,017.10‌
7.97‌
Class
K
.................
1,000.00‌
1,150.40‌
2.53‌
2.53‌
1,000.00‌
1,022.65‌
2.38‌
1,022.65‌
2.38‌
Class
R
.................
1,000.00‌
1,146.80‌
6.06‌
6.06‌
1,000.00‌
1,019.35‌
5.70‌
1,019.35‌
5.70‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
366.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class
(0.57%
for
Institutional,
0.84%
for
Service,
0.88%
for
Investor
A,
1.58%
for
Investor
C,
0.47%
for
Class
K
and
1.13%
for
Class
R),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183
/366
(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
(0.57%
for
Institutional,
0.84%
for
Service,
0.88%
for
Investor
A,
1.58%
for
Investor
C,
0.47%
for
Class
K
and
1.13%
for
Class
R),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(to
reflect
the
one-half
year
period
shown).
See
“Disclosure
of
Expenses”
on
page
15
for
further
information
on
how
expenses
were
calculated.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
85‌
%
Floating
Rate
Loan
Interests
...........................
8‌
Investment
Companies
...............................
5‌
Common
Stocks
...................................
1‌
Preferred
Securities
.................................
1‌
Asset-Backed
Securities
..............................
—‌
(b)
Foreign
Agency
Obligations
............................
—‌
(b)
Warrants
........................................
—‌
(b)
Other
Interests
....................................
—‌
(b)
(a)
Excludes
short-term
securities,
options
purchased
and
options
written
.
(b)
Represents
less
than
1%
of
the
Fund's
total
investments.
CREDIT
QUALITY
ALLOCATION
Credit
Rating
(a)
Percent
of
Total
Investments
(b)
A
............................................
—‌
%
(c)
BBB/Baa
.......................................
11‌
BB/Ba
.........................................
37‌
B
............................................
32‌
CCC/
Caa
.......................................
12‌
CC/Ca
........................................
—‌
(c)
NR
...........................................
8‌ 
(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)
Excludes
short-term
securities,
options
purchased
and
options
written
.
(c)
Represents
less
than
1%
of
the
Fund's
total
investments.
Fund
Summary
as
of
September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
10
BlackRock
Low
Duration
Bond
Portfolio
Investment
Objective
BlackRock
Low
Duration
Bond
Portfolio’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
September
30,
2020,
the
Fund
underperformed
its
benchmark,
the
ICE
BofAML1-3
Year
U.S.
Corporate
&
Government
Index.
What
factors
influenced
performance?
During
the
period,
the
main
detractor
from
the
Fund’s
performance
relative
to
the
benchmark
was
its
allocations
to
high
yield
corporate
credit,
as
the
sector
was
particularly
hard
hit
by
the
emergence
of
the
COVID-19
crisis.
Exposure
to
sovereign
securities
and
commercial
mortgage-backed
securities
(“CMBS”)
also
detracted.
Conversely,
the
leading
positive
contributor
to
relative
performance
was
the
Fund’s
allocation
to
investment
grade
corporate
issues,
which
rebounded
in
the
second
quarter
of
2020
in
part
on
the
basis
of
Fed
support
for
the
sector.
Exposure
to
mortgage-backed
securities
(“MBS”)
and
asset-backed
securities
(“ABS”)
also
boosted
relative
return.
The
Fund
held
derivatives
during
the
reporting
period.
Specifically,
the
Fund
primarily
used
financial
futures
and
interest
rate
swaps
for
managing
duration
and
yield
curve
positioning.
The
Fund
also
utilized
credit
default
swaps
on
individual
names
and
indices
to
either
manage
credit
risk
or
gain
credit
exposure.
Currency
forwards
were
utilized
to
manage
currency
risk
or
take
active
currency
positions,
and
options
were
employed
on
swaps
to
express
views
on
volatility.
Overall,
the
Fund’s
use
of
derivatives
had
a
negative
impact
on
Fund
performance.
The
Fund’s
cash
position
was
8.5%
of
portfolio
assets
at
period
end.
The
position
was
largely
driven
by
purchases
of
Japanese
and
European
government
bills
hedged
back
to
the
U.S.
dollar
to
generate
attractive
carry
in
a
low
yield
environment.
The
Fund’s
cash
position
had
a
positive
impact
on
performance
during
the
period.
Describe
recent
portfolio
activity.
The
start
of
the
12-month
period
was
characterized
by
generally
“risk-on”
market
sentiment
as
a
trade
agreement
between
the
United
States
and
China
finally
materialized,
the
United
Kingdom
took
crucial
steps
towards
Brexit,
and
bipartisan
support
for
a
new
North
American
trade
pact
reduced
geopolitical
uncertainty.
However,
the
positive
momentum
was
quickly
reversed
in
February
2020
as
growing
fears
surrounding
the
increasing
spread
of
the
coronavirus
began
to
dominate
the
market
narrative.
As
U.S.
credit
spreads
widened
to
levels
last
seen
in
2009
and
the
Fed
started
up
its
primary
and
secondary
corporate
credit
facilities,
the
Fund’s
allocation
to
U.S.
credit
was
increased,
with
a
preference
for
the
communication,
banking,
technology,
pharmaceutical,
health
care
and
consumer
non-cyclical
segments.
During
the
second
quarter
of
2020,
the
Fed’s
purchases
of
corporate
credits,
combined
with
improving
economic
data,
prompted
front-end
spreads
to
tighten
to
levels
last
seen
at
the
end
of
February.
This
prompted
the
investment
adviser
to
take
profits
in
high
quality
corporate
issues
and
ABS
during
the
third
quarter
of
2020,
and
to
reallocate
some
of
that
risk
into
high
yield
corporate
credits
with
strong
fundamentals.
The
Fund
also
maintained
exposure
to
BBB-rated
corporates,
given
the
outlook
for
Fed
support
through
year
end,
a
favorable
technical
environment
and
record
inflows
into
the
sector.
Lastly,
the
Fund
tactically
purchased
MBS,
which
have
benefited
from
the
Fed's
purchases
during
2020.
Describe
portfolio
positioning
at
period
end.
At
the
end
of
the
reporting
period,
the
Fund
was
positioned
with
an
overweight
to
corporate
credit,
while
maintaining
an
underweight
to
government
sectors
such
as
Treasuries,
agencies
and
sovereigns.
The
Fund
also
held
out-of-benchmark
allocations
to
ABS,
CMBS
and
agency
MBS.
In
addition,
the
Fund
was
positioned
with
a
short
stance
with
respect
to
duration
(sensitivity
to
interest
rate
changes)
on
the
view
that
the
U.S.
Treasury
curve
will
eventually
steepen
on
positive
developments
regarding
fiscal
stimulus
and
a
COVID-19
vaccine
as
the
Fed
continues
to
hold
short
rates
near
zero.
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.
Fund
Summary
as
of
September
30,
2020
(continued)
11
Fund
Summary
BlackRock
Low
Duration
Bond
Portfolio
Total
Return
based
on
a
$10,000
Investment
Performance
Summary
for
the
Period
Ended
September
30,
2020
(a)
Assuming
maximum
sales
charges,
if
any,
transaction
costs
and
other
operating
expenses,
including
investment
advisory
fees
and
administration
fees,
if
any.
Institutional
Shares
do
not
have
a
sales
charge.
(b)
The
Fund
invests
primarily
in
investment
grade
bonds
and
maintains
an
average
portfolio
duration
that
is
between
0-3
years.
The
Fund
normally
invests
at
least
80%
of
its
assets
in
debt
securities.
On
September
17,
2018,
the
Fund
acquired
all
of
the
assets,
subject
to
the
liabilities,
of
BlackRock
Low
Duration
Bond
Portfolio
(the
“Predecessor
Fund”),
a
series
of
BlackRock
Funds
II,
through
a
tax-free
reorganization
(the
“Reorganization”).
The
Predecessor
Fund
is
the
performance
and
accounting
survivor
of
the
Reorganization.
(c)
An
unmanaged
index
comprised
of
investment
grade
corporate
bonds
and
U.S.
Government
Agency
and
U.S.
Treasury
securities
with
a
maturity
ranging
from
one
to
three
years.
Effective
January
1,
2020,
the
Fund's
benchmark
was
renamed
from
ICE
BofAML
1-3
Year
U.S.
Corporate
&
Government
Index
to
ICE
BofA
1-3
Year
U.S.
Corporate
&
Government
Index.
Average
Annual
Total
Returns
(a)
1
Year
5
Years
10
Years
Standardized
30-Day
Yields
Unsubsidized
30-Day
Yields
6-Month
Total
Returns
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
w/o
sales
charge
w/sales
charge
Institutional
......................
1.24‌%
1.20‌%
5.64‌%
3.00‌%
N/A‌
2.35‌%
N/A‌
2.34‌%
N/A‌
Service
........................
0.99‌
0.89‌
5.52‌
2.74‌
N/A‌
2.08‌
N/A‌
2.02‌
N/A‌
Investor
A
.......................
0.97‌
0.86‌
5.51‌
2.85‌
0.54‌%
2.10‌
1.63‌%
2.03‌
1.80‌%
Investor
A1
......................
1.14‌
1.04‌
5.59‌
2.90‌
N/A‌
2.24‌
N/A‌
2.18‌
N/A‌
Investor
C
.......................
0.25‌
0.17‌
5.13‌
1.98‌
0.98‌
1.32‌
1.32‌
1.28‌
1.28‌
Class
K
........................
1.29‌
1.24‌
5.67‌
3.05‌
N/A‌
2.40‌
N/A‌
2.39‌
N/A‌
Class
R
........................
0.75‌
0.65‌
5.39‌
2.49‌
N/A‌
1.82‌
N/A‌
1.69‌
N/A‌
ICE
BofAML
1-3
Year
U.S.
Corporate
&
Government
Index
............
—‌
—‌
1.49‌
3.74‌
N/A‌
2.11‌
N/A‌
1.60‌
N/A‌
(a)
Assuming
maximum
sales
charges,
if
any.
Average
annual
total
returns
with
and
without
sales
charges
reflect
reductions
for
distribution
and
service
fees.
See
“About
Fund
Performance”
on
page
14
for
a
detailed
description
of
share
classes,
including
any
related
sales
charges
and
fees,
and
how
performance
was
calculated
for
certain
classes.
N/A
–
Not
applicable
as
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.
Fund
Summary
as
of
September
30,
2020
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
12
BlackRock
Low
Duration
Bond
Portfolio
Expense
Example
Portfolio
Information
Actual
Hypothetical
(a)
Including
Interest
Expense
Excluding
Interest
Expense
Including
Interest
Expense
Excluding
Interest
Expense
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Expenses
Paid
During
the
Period
(c)
Beginning
Account
Value
(04/01/20)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(b)
Ending
Account
Value
(09/30/20)
Expenses
Paid
During
the
Period
(c)
Institutional
...............
$
1,000.00‌
$
1,056.40‌
$
2.11‌
$
2.06‌
$
1,000.00‌
$
1,022.95‌
$
2.07‌
$
1,023.00‌
$
2.02‌
Service
.................
1,000.00‌
1,055.20‌
3.39‌
3.34‌
1,000.00‌
1,021.70‌
3.34‌
1,021.75‌
3.29‌
Investor
A
................
1,000.00‌
1,055.10‌
3.39‌
3.34‌
1,000.00‌
1,021.70‌
3.34‌
1,021.75‌
3.29‌
Investor
A1
...............
1,000.00‌
1,055.90‌
2.62‌
2.57‌
1,000.00‌
1,022.45‌
2.58‌
1,022.50‌
2.53‌
Investor
C
................
1,000.00‌
1,051.30‌
7.23‌
7.18‌
1,000.00‌
1,017.95‌
7.11‌
1,018.00‌
7.06‌
Class
K
.................
1,000.00‌
1,056.70‌
1.85‌
1.80‌
1,000.00‌
1,023.20‌
1.82‌
1,023.25‌
1.77‌
Class
R
.................
1,000.00‌
1,053.90‌
4.67‌
4.62‌
1,000.00‌
1,020.45‌
4.60‌
1,020.50‌
4.55‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
366.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annu
alized
expense
ratio
for
the
class
(0.41%
for
Institutional,
0.66%
for
Service,
0.66%
for
Investor
A
0.51%
for
Investor
A1,
1.41%
for
Investor
C,
0.36%
for
Class
K
and
0.91%
for
Class
R),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(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
(0.40%
for
Institutional,
0.65%
for
Service,
0.65%
for
Investor
A
0.50%
for
Investor
A1,
1.40%
for
Investor
C,
0.35%
for
Class
K
and
0.90%
for
Class
R),
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/366
(to
reflect
the
one-half
year
period
shown).
See
“Disclosure
of
Expenses”
on
page
15
for
further
information
on
how
expenses
were
calculated.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
at
Total
Investments
(a)
Corporate
Bonds
...................................
40‌
%
Asset-Backed
Securities
..............................
16‌
Non-Agency
Mortgage-Backed
Securities
..................
15‌
U.S.
Government
Sponsored
Agency
Securities
..............
10‌
U.S.
Treasury
Obligations
.............................
10‌
Foreign
Agency
Obligations
............................
5‌
Investment
Companies
...............................
2‌
Foreign
Government
Obligations
........................
2‌
Municipal
Bonds
...................................
—‌
(b)
Floating
Rate
Loan
Interests
...........................
—‌
(b)
(a)
Excludes
short-term
securities,
options
purchased
and
options
written.
(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)
.....................................
49‌
%
AA/Aa
........................................
2‌
A
...........................................
11‌
BBB/Baa
......................................
22‌
BB/Ba
........................................
7‌
B
...........................................
4‌
CCC/
Caa
......................................
—‌
(d)
D
...........................................
—‌
(d)
NR
..........................................
5‌
(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)
Excludes
short-term
securities,
options
purchased
and
options
written.
(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.
13
The
Benefits
and
Risks
of
Leveraging
The
Benefits
and
Risks
of
Leveraging 
The
Funds
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
Funds
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
each
Fund
on
its
longer-term
portfolio
investments
purchased
with
the
proceeds
from
leverage.
To
the
extent
that
the
total
assets
of
each
Fund
(including
the
assets
obtained
from
leverage)
are
invested
in
higher-yielding
portfolio
investments, each
Fund's
shareholders
benefit
from
the
incremental
net
income.
The
interest
earned
on
securities
purchased
with
the
proceeds
from
leverage
is
distributed
to each
Fund's
shareholders,
and
the
value
of
these
portfolio
holdings
is
reflected
in each
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
a
Fund’s
return
on
assets
purchased
with
leverage
proceeds,
income
to
shareholders
is
lower
than
if
the
Funds
had
not
used
leverage.
Furthermore,
the
value
of
each
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
each
Fund’s
NAV
positively
or
negatively
in
addition
to
the
impact
on
each
Fund’s
performance
from
leverage.
Changes
in
the
direction
of
interest
rates
are
difficult
to
predict
accurately,
and
there
is
no
assurance
that
a
Fund’s
leveraging
strategy
will
be
successful.
The
use
of
leverage
also
generally
causes
greater
changes
in
each
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,
each
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.
Each
Fund
incurs
expenses
in
connection
with
the
use
of
leverage,
all
of
which
are
borne
by
each
Fund’s
shareholders
and
may
reduce
income.
2020
BlackRock
Annual
Report
to
Shareholders
14
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.
Service
Shares
are
not
subject
to
any
sales
charge.
These
shares
are
subject
to
a
service
fee
of 
0.25%
per
year
(but
no
distribution
fee)
and
are
only
available
to
certain
eligible
investors. 
Investor
A
Shares
are
subject
to
a
maximum
initial
sales
charge
(front-end
load)
of
4.00%
for
all
Funds
included
in
this
report,
except
for
BlackRock
Low
Duration
Bond
Portfolio
(“Low
Duration
Bond”),
which
is
subject
to
an
initial
sales
charge
of
2.25%.
These
shares
are
subject
to
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.
On
February
24,
2020,
BlackRock
High
Yield
Bond
Portfolio's
issued
and
outstanding
Investor
C1
Shares
and
BlackRock
Low
Duration
Bond
Portfolio's
issued
and
outstanding
Investor
C2
and
Investor
C3
Shares
converted
into
Investor
A
Shares
with
the
same
relative
aggregate
NAV.
Investor
A1
Shares
(available
only
in
Low
Duration
Bond
Portfolio)
are
subject
to
a
maximum
initial
sales
charge
(front-end
load)
of
1.00%
and
a
service
fee
of 
0.10%
per
year
(but
no
distribution
fee).
The
maximum
initial
sales
charge
does
not
apply
to
current
eligible
shareholders
of
Investor
A1
Shares
of
the
Fund.
These
shares
are
only
available
for
dividend
and
capital
gain
reinvestment
by
existing
shareholders
and
for
purchase
by
certain
eligible
employer-sponsored
retirement
plans.
Certain
redemption
of
these
shares
may
be
subject
to
a
CDSC
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
However,
the
CDSC
does
not
apply
to
redemptions
by
certain
employer-sponsored
retirement
plans
or
to
redemptions
of
shares
acquired
through
the
reinvestment
of
dividends
and
capital
gains
by
existing
shareholders.
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
ten
years.
Effective
November
23,
2020,
the
automatic
conversion
feature
will
be
modified
to
reduce
the
conversion
period
from
ten
years
to
eight
years.
Class
R
Shares
are
not
subject
to
any
sales
charge.
These
shares
are
subject
to
a
distribution
fee
of 
0.25%
per
year
and
a
service
fee
of 
0.25%
per
year.
These
shares
are
available
only
to
certain
employer-sponsored
retirement
plans.
Prior
to
July
18,
2011,
Low
Duration
Bond’s
Class
R
Shares
performance
results
are
those
of
Institutional
Shares
(which
have
no
distribution
or
service
fees)
restated
to
reflect
Class
R
Shares
fees
.
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
an
y,
at
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
and/or
reimbursement,
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.
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.
Disclosure
of
Expenses
15
Disclosure
of
Expenses
/
Derivative
Financial
Instruments
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
on
the
previous
pages
(which are
based
on
a
hypothetical
investment
of
$1,000
invested
on April
1,
2020 and
held
through
September
30,
2020) 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.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
16
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
—
6.9%
Adams
Mill
CLO
Ltd.
(a)(b)
:
Series
2014-1A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.10%),
1.37%,
07/15/26
....
USD
710
$
706,964
Series
2014-1A,
Class
C1R,
(LIBOR
USD
3
Month
+
2.35%),
2.63%,
07/15/26
....
390
385,748
AGL
CLO
7
Ltd.
(a)(b)
:
Series
2020-7A,
Class
A1,
(LIBOR
USD
3
Month
+
1.80%),
2.05%,
07/15/31
....
540
540,001
Series
2020-7A,
Class
D,
(LIBOR
USD
3
Month
+
4.40%),
4.65%,
07/15/31
....
250
250,006
AGL
Core
CLO
2
Ltd.,
Series
2019-2A,
Class
A1,
(LIBOR
USD
3
Month
+
1.39%),
1.66%,
04/20/32
(a)(b)
.....................
1,320
1,318,737
AGL
Core
CLO
5
Ltd.,
Series
2020-5A,
Class
D,
(LIBOR
USD
3
Month
+
4.95%),
5.25%,
07/20/30
(a)(b)(c)
....................
250
248,200
Allegro
CLO
II-S
Ltd.,
Series
2014-1RA,
Class
A1,
(LIBOR
USD
3
Month
+
1.08%),
1.35%,
10/21/28
(a)(b)
.....................
1,130
1,126,968
Allegro
CLO
IV
Ltd.
(a)(b)
:
Series
2016-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.15%),
1.42%,
01/15/30
....
1,444
1,438,465
Series
2016-1A,
Class
BR,
(LIBOR
USD
3
Month
+
1.70%),
1.98%,
01/15/30
....
560
550,156
ALM
Ltd.,
Series
2020-1A,
Class
A2,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
10/15/29
(a)(b)
1,660
1,658,703
ALM
VII
R
Ltd.,
Series
2013-7RA,
Class
A1R,
(LIBOR
USD
3
Month
+
1.41%),
1.69%,
10/15/28
(a)(b)
.....................
690
687,120
ALM
XIX
Ltd.,
Series
2016-19A,
Class
A2RA,
(LIBOR
USD
3
Month
+
1.45%),
1.73%,
04/16/29
(a)(b)(c)
....................
730
723,284
ALM
XVI
Ltd.
(a)(b)
:
Series
2015-16A,
Class
A2R2,
(LIBOR
USD
3
Month
+
1.50%),
1.78%,
07/15/27
...
1,480
1,465,714
Series
2015-16A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.90%),
2.18%,
07/15/27
....
560
545,330
ALM
XVIII
Ltd.,
Series
2016-18A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.65%),
1.92%,
01/15/28
(a)(b)
.....................
500
490,319
AMMC
CLO
16
Ltd.,
Series
2015-16A,
Class
BR,
(LIBOR
USD
3
Month
+
1.60%),
1.87%,
04/14/29
(a)(b)
.....................
250
243,989
AMMC
CLO
XII
Ltd.,
Series
2013-12A,
Class
AR,
(LIBOR
USD
3
Month
+
1.20%),
1.44%,
11/10/30
(a)(b)
.....................
500
496,701
AMMC
CLO
XIII
Ltd.,
Series
2013-13A,
Class
A1LR,
(LIBOR
USD
3
Month
+
1.26%),
1.52%,
07/24/29
(a)(b)
................
781
779,589
AMMC
CLO
XIV
Ltd.,
Series
2014-14A,
Class
A1LR,
(LIBOR
USD
3
Month
+
1.25%),
1.50%,
07/25/29
(a)(b)
................
1,530
1,524,427
AMSR
Trust,
Series
2020-SFR2,
Class
D,
3.28%,
07/17/37
(b)
.................
557
579,183
Anchorage
Capital
CLO
1-R
Ltd.,
Series
2018-
1RA,
Class
A1,
(LIBOR
USD
3
Month
+
0.99%),
1.26%,
04/13/31
(a)(b)
..........
2,240
2,214,117
Anchorage
Capital
CLO
3-R
Ltd.,
Series
2014-3RA,
Class
B,
(LIBOR
USD
3
Month
+
1.50%),
1.75%,
01/28/31
(a)(b)
..........
1,040
1,020,952
Anchorage
Capital
CLO
4-R
Ltd.
(a)(b)
:
Series
2014-4RA,
Class
A,
(LIBOR
USD
3
Month
+
1.05%),
1.30%,
01/28/31
....
920
910,916
Series
2014-4RA,
Class
C,
(LIBOR
USD
3
Month
+
1.85%),
2.10%,
01/28/31
....
360
345,051
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Anchorage
Capital
CLO
5-R
Ltd.
(a)(b)
:
Series
2014-5RA,
Class
B,
(LIBOR
USD
3
Month
+
1.45%),
1.73%,
01/15/30
....
USD
420
$
410,223
Series
2014-5RA,
Class
C,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
01/15/30
....
250
238,966
Anchorage
Capital
CLO
6
Ltd.,
Series
2015-6A,
Class
AR,
(LIBOR
USD
3
Month
+
1.27%),
1.55%,
07/15/30
(a)(b)
................
580
576,064
Anchorage
Capital
CLO
7
Ltd.
(a)(b)
:
Series
2015-7A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.09%),
1.34%,
01/28/31
....
930
917,880
Series
2015-7A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.75%),
2.00%,
01/28/31
....
1,640
1,604,931
Series
2015-7A,
Class
D1R2,
(LIBOR
USD
3
Month
+
3.50%),
3.75%,
01/28/31
....
250
238,035
Anchorage
Capital
CLO
8
Ltd.
(a)(b)
:
Series
2016-8A,
Class
AR,
(LIBOR
USD
3
Month
+
1.00%),
1.25%,
07/28/28
....
570
568,465
Series
2016-8A,
Class
BR,
(LIBOR
USD
3
Month
+
1.60%),
1.85%,
07/28/28
....
650
639,759
Anchorage
Capital
CLO
Ltd.,
Series
2013-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.25%),
1.52%,
10/13/30
(a)(b)
................
670
667,628
Anchorage
Capital
Europe
CLO
2
DAC,
Series
2A,
Class
B,
(EURIBOR
3
Month
+
1.80%),
1.80%,
05/15/31
(a)(b)
................
EUR
250
292,538
Apidos
CLO
XII,
Series
2013-12A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.36%,
04/15/31
(a)(b)
.....................
USD
4,916
4,839,797
Apidos
CLO
XV,
Series
2013-15A,
Class
A1RR,
(LIBOR
USD
3
Month
+
1.01%),
1.28%,
04/20/31
(a)(b)
.....................
500
496,791
Apidos
CLO
XVIII,
Series
2018-18A,
Class
A1,
(LIBOR
USD
3
Month
+
1.14%),
1.40%,
10/22/30
(a)(b)
.....................
350
345,561
Apidos
CLO
XXXI,
Series
2019-31A,
Class
B,
(LIBOR
USD
3
Month
+
1.90%),
2.18%,
04/15/31
(a)(b)
.....................
580
579,998
Aqueduct
European
CLO
DAC,
Series
2019-4X,
Class
B1,
(EURIBOR
3
Month
+
1.80%),
1.80%,
07/15/32
(a)
.................
EUR
340
398,268
Arbour
CLO
II
DAC,
Series
2014-2X,
Class
B2R,
(EURIBOR
3
Month
+
1.50%),
1.50%,
05/15/30
(a)
......................
202
235,429
Ares
European
CLO
X
BV,
Series
10X,
Class
B1,
(EURIBOR
3
Month
+
1.70%),
1.70%,
10/15/31
(a)
......................
180
209,455
Ares
European
CLO
XI
BV,
Series
11X,
Class
B1,
(EURIBOR
3
Month
+
1.85%),
1.85%,
04/15/32
(a)
......................
170
198,738
Ares
European
CLO
XII
BV,
Series
12X,
Class
B1,
(EURIBOR
3
Month
+
1.75%),
1.75%,
04/20/32
(a)
......................
200
233,648
Ares
XXXVII
CLO
Ltd.,
Series
2015-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.17%),
1.45%,
10/15/30
(a)(b)
................
USD
310
306,880
Atrium
IX,
Series
9A,
Class
AR,
(LIBOR
USD
3
Month
+
1.24%),
1.50%,
05/28/30
(a)(b)
....
990
966,085
Atrium
XII,
Series
12A,
Class
AR,
(LIBOR
USD
3
Month
+
0.83%),
1.09%,
04/22/27
(a)(b)
...
376
372,208
Avery
Point
IV
CLO
Ltd.,
Series
2014-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.10%),
1.34%,
04/25/26
(a)(b)
.....................
1,553
1,552,824
Avery
Point
V
CLO
Ltd.
(a)(b)
:
Series
2014-5A,
Class
AR,
(LIBOR
USD
3
Month
+
0.98%),
1.25%,
07/17/26
....
360
359,580
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
17
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2014-5A,
Class
BR,
(LIBOR
USD
3
Month
+
1.50%),
1.77%,
07/17/26
....
USD
650
$
644,460
Avery
Point
VI
CLO
Ltd.
(a)(b)
:
Series
2015-6A,
Class
AR,
(LIBOR
USD
3
Month
+
1.05%),
1.30%,
08/05/27
....
900
898,918
Series
2015-6A,
Class
BR,
(LIBOR
USD
3
Month
+
1.50%),
1.75%,
08/05/27
....
840
822,576
Avery
Point
VII
CLO
Ltd.,
Series
2015-7A,
Class
AR,
(LIBOR
USD
3
Month
+
1.14%),
1.42%,
01/15/28
(a)(b)
................
1,650
1,641,188
Avoca
CLO
XVII
DAC,
Series
17A,
Class
B1R,
(EURIBOR
3
Month
+
1.70%),
1.70%,
10/15/32
(a)(b)
.....................
EUR
262
308,949
Avoca
CLO
XVIII
DAC,
Series
18X,
Class
C,
(EURIBOR
3
Month
+
1.75%),
1.75%,
04/15/31
(a)
......................
100
113,864
B2R
Mortgage
Trust,
Series
2015-2,
Class
A,
3.34%,
11/15/48
(b)
.................
USD
11
10,644
Babson
CLO
Ltd.,
Series
2015-IA,
Class
BR,
(LIBOR
USD
3
Month
+
1.40%),
1.67%,
01/20/31
(a)(b)
.....................
250
244,138
Bain
Capital
Credit
CLO
Ltd.,
Series
2018-2A,
Class
A1,
(LIBOR
USD
3
Month
+
1.08%),
1.35%,
07/19/31
(a)(b)
................
330
325,945
Barings
CLO
Ltd.,
Series
2018-3A,
Class
A1,
(LIBOR
USD
3
Month
+
0.95%),
1.22%,
07/20/29
(a)(b)
.....................
270
267,172
Battalion
CLO
18
Ltd.
(a)(b)
:
Series
2020-18A,
Class
B,
(LIBOR
USD
3
Month
+
2.30%),
0.00%,
10/15/32
....
375
375,000
Series
2020-18A,
Class
D1,
(LIBOR
USD
3
Month
+
4.00%),
4.23%,
10/15/32
....
326
326,000
Battalion
CLO
VII
Ltd.,
Series
2014-7A,
Class
A1RR,
(LIBOR
USD
3
Month
+
1.04%),
1.31%,
07/17/28
(a)(b)
................
800
795,332
Battalion
CLO
VIII
Ltd.
(a)(b)
:
Series
2015-8A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.07%),
1.34%,
07/18/30
....
1,332
1,315,977
Series
2015-8A,
Class
A2R2,
(LIBOR
USD
3
Month
+
1.55%),
1.82%,
07/18/30
....
666
646,671
Battalion
CLO
X
Ltd.,
Series
2016-10A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.25%),
1.51%,
01/24/29
(a)(b)
................
4,880
4,860,462
BDS
Ltd.,
Series
2019-FL3,
Class
A,
(LIBOR
USD
1
Month
+
1.40%),
1.55%,
12/15/35
(a)(b)
1,080
1,061,148
Benefit
Street
Partners
CLO
II
Ltd.,
Series
2013-IIA,
Class
A2R,
(LIBOR
USD
3
Month
+
1.75%),
2.03%,
07/15/29
(a)(b)
.........
650
646,011
Benefit
Street
Partners
CLO
V-B
Ltd.,
Series
2018-5BA,
Class
A1A,
(LIBOR
USD
3
Month
+
1.09%),
1.36%,
04/20/31
(a)(b)
.........
960
952,287
Benefit
Street
Partners
CLO
VII
Ltd.,
Series
2015-VIIA,
Class
A1AR,
(LIBOR
USD
3
Month
+
0.78%),
1.05%,
07/18/27
(a)(b)
....
392
390,367
Benefit
Street
Partners
CLO
XX
Ltd.,
Series
2020-20A,
Class
D,
(LIBOR
USD
3
Month
+
4.25%),
4.40%,
07/15/31
(a)(b)
..........
640
639,551
Birch
Grove
CLO
Ltd.,
Series
19A,
Class
D,
(LIBOR
USD
3
Month
+
3.90%),
4.15%,
06/15/31
(a)(b)
.....................
500
495,309
Black
Diamond
CLO
Ltd.,
Series
2013-1A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.45%),
1.72%,
02/06/26
(a)(b)
................
172
172,184
BlueMountain
CLO
Ltd.
(a)(b)
:
Series
2013-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.23%),
1.50%,
01/20/29
....
1,340
1,337,009
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2013-2A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.18%),
1.44%,
10/22/30
....
USD
1,756
$
1,737,408
Series
2015-3A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.00%),
1.27%,
04/20/31
....
250
246,297
BlueMountain
CLO
XXIX
Ltd.,
Series
2020-29A,
Class
B,
(LIBOR
USD
3
Month
+
2.25%),
2.56%,
07/25/31
(a)(b)
................
250
249,986
BlueMountain
Fuji
Eur
CLO
IV
DAC,
Series
4X,
Class
A2,
(EURIBOR
3
Month
+
1.35%),
1.35%,
03/30/32
(a)
.................
EUR
130
152,378
BlueMountain
Fuji
Eur
CLO
V
DAC,
Series
5X,
Class
C,
(EURIBOR
3
Month
+
2.45%),
2.45%,
01/15/33
(a)
.................
340
392,150
Cairn
CLO
XII
DAC
(a)(b)(c)
:
Series
2020-12A,
Class
B,
(EURIBOR
3
Month
+
2.30%),
2.30%,
04/15/33
....
250
293,845
Series
2020-12A,
Class
C,
(EURIBOR
3
Month
+
3.00%),
3.00%,
04/15/33
....
250
293,406
Carlyle
C17
CLO
Ltd.,
Series
C17A,
Class
A1AR,
(LIBOR
USD
3
Month
+
1.03%),
1.30%,
04/30/31
(a)(b)
................
USD
1,860
1,837,290
Carlyle
Global
Market
Strategies
CLO
Ltd.
(a)(b)
:
Series
2014-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
0.97%),
1.24%,
04/17/31
....
798
787,964
Series
2014-3RA,
Class
A1A,
(LIBOR
USD
3
Month
+
1.05%),
1.29%,
07/27/31
....
3,333
3,284,201
Series
2015-3A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.60%),
1.85%,
07/28/28
....
530
520,121
Carlyle
US
CLO
Ltd.
(a)(b)
:
Series
2016-4A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.45%),
1.72%,
10/20/27
....
250
243,520
Series
2020-1A,
Class
C1,
(LIBOR
USD
3
Month
+
4.00%),
4.19%,
07/20/31
....
250
250,003
CarVal
CLO
II
Ltd.,
Series
2019-1A,
Class
D,
(LIBOR
USD
3
Month
+
4.15%),
4.42%,
04/20/32
(a)(b)
.....................
998
997,978
CBAM
Ltd.
(a)(b)
:
Series
2017-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.25%),
1.52%,
07/20/30
....
1,600
1,598,596
Series
2017-2A,
Class
B1,
(LIBOR
USD
3
Month
+
1.75%),
2.02%,
10/17/29
....
810
795,362
CDO
Repack
SPC
Ltd.,
Series
2006-CLF1,
Class
D1,
7.11%,
05/20/30
(b)
..........
389
406,815
Cedar
Funding
II
CLO
Ltd.,
Series
2013-1A,
Class
BR,
(LIBOR
USD
3
Month
+
1.75%),
1.99%,
06/09/30
(a)(b)
................
550
544,273
Cedar
Funding
VI
CLO
Ltd.,
Series
2016-6A,
Class
AR,
(LIBOR
USD
3
Month
+
1.09%),
1.36%,
10/20/28
(a)(b)
................
2,980
2,957,690
Cedar
Funding
VIII
CLO
Ltd.
(a)(b)
:
Series
2017-8A,
Class
A1,
(LIBOR
USD
3
Month
+
1.25%),
1.52%,
10/17/30
....
4,530
4,495,988
Series
2017-8A,
Class
B,
(LIBOR
USD
3
Month
+
1.70%),
1.97%,
10/17/30
....
750
732,399
Series
2017-8A,
Class
C,
(LIBOR
USD
3
Month
+
2.25%),
2.52%,
10/17/30
....
250
240,487
Cent
CLO
24
Ltd.,
Series
2015-24A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.07%),
1.35%,
10/15/26
(a)(b)
.....................
890
887,749
CIFC
Funding
Ltd.
(a)(b)
:
Series
2014-4RA,
Class
A1A,
(LIBOR
USD
3
Month
+
1.13%),
1.40%,
10/17/30
....
6,450
6,421,085
Series
2015-2A,
Class
CR2,
(LIBOR
USD
3
Month
+
2.00%),
2.27%,
04/15/30
....
633
605,600
Series
2015-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.15%),
1.42%,
10/20/27
....
250
248,600
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
18
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2017-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.01%),
1.28%,
04/23/29
....
USD
1,190
$
1,186,030
Series
2017-1A,
Class
B,
(LIBOR
USD
3
Month
+
1.70%),
1.97%,
04/23/29
....
340
335,247
Series
2018-1A,
Class
A,
(LIBOR
USD
3
Month
+
1.00%),
1.27%,
04/18/31
....
1,230
1,205,585
Series
2020-1A,
Class
B,
(LIBOR
USD
3
Month
+
2.30%),
2.54%,
07/15/32
....
740
739,996
Series
2020-1A,
Class
D,
(LIBOR
USD
3
Month
+
4.00%),
4.24%,
07/15/32
....
380
376,829
Cloud
Pass-Through
Trust,
Series
2019-1A,
Class
CLOU,
3.55%,
12/05/22
(b)(d)
.......
860
873,970
Contego
CLO
VIII
DAC,
Series
8A,
Class
B1,
(EURIBOR
3
Month
+
2.10%),
2.10%,
01/25/32
(a)(b)
.....................
EUR
540
632,352
Corevest
American
Finance
Trust,
Series
2020-
2,
Class
A,
3.38%,
05/15/52
(b)
.........
USD
2,081
2,263,341
Cumberland
Park
CLO
Ltd.,
Series
2015-2A,
Class
CR,
(LIBOR
USD
3
Month
+
1.80%),
2.07%,
07/20/28
(a)(b)
................
310
300,378
CVC
Cordatus
Loan
Fund
VI
DAC,
Series
6X,
Class
CR,
(EURIBOR
3
Month
+
1.60%),
1.60%,
04/15/32
(a)
.................
EUR
250
280,794
Deer
Creek
CLO
Ltd.,
Series
2017-1A,
Class
A,
(LIBOR
USD
3
Month
+
1.18%),
1.45%,
10/20/30
(a)(b)
.....................
USD
1,500
1,480,437
Dryden
36
Senior
Loan
Fund,
Series
2014-36A,
Class
DR2,
(LIBOR
USD
3
Month
+
3.70%),
3.98%,
04/15/29
(a)(b)
................
250
243,201
Dryden
43
Senior
Loan
Fund,
Series
2016-43A,
Class
AR,
(LIBOR
USD
3
Month
+
1.14%),
1.41%,
07/20/29
(a)(b)
................
1,590
1,586,879
Dryden
53
CLO
Ltd.,
Series
2017-53A,
Class
A,
(LIBOR
USD
3
Month
+
1.12%),
1.40%,
01/15/31
(a)(b)
.....................
4,900
4,859,554
Dryden
76
CLO
Ltd.,
Series
2019-76A,
Class
A1,
(LIBOR
USD
3
Month
+
1.33%),
1.60%,
10/20/32
(a)(b)
.....................
250
246,876
Dryden
XXV
Senior
Loan
Fund,
Series
2012-
25A,
Class
ARR,
(LIBOR
USD
3
Month
+
0.90%),
1.18%,
10/15/27
(a)(b)
..........
2,911
2,889,253
Dryden
XXVI
Senior
Loan
Fund,
Series
2013-
26A,
Class
AR,
(LIBOR
USD
3
Month
+
0.90%),
1.18%,
04/15/29
(a)(b)
..........
330
326,471
Dryden
XXVIII
Senior
Loan
Fund,
Series
2013-
28A,
Class
A1LR,
(LIBOR
USD
3
Month
+
1.20%),
1.48%,
08/15/30
(a)(b)
..........
1,660
1,641,923
Eaton
Vance
CLO
Ltd.
(a)(b)
:
Series
2013-1A,
Class
A1RR,
(LIBOR
USD
3
Month
+
1.16%),
1.44%,
01/15/28
...
270
268,716
Series
2013-1A,
Class
A2RR,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
01/15/28
...
250
249,378
Elm
CLO
Ltd.
(a)(b)
:
Series
2014-1A,
Class
ARR,
(LIBOR
USD
3
Month
+
1.17%),
1.44%,
01/17/29
....
5,500
5,473,129
Series
2014-1A,
Class
BRR,
(LIBOR
USD
3
Month
+
1.75%),
2.02%,
01/17/29
....
470
466,238
Elmwood
CLO
II
Ltd.
(a)(b)
:
Series
2019-2A,
Class
A,
(LIBOR
USD
3
Month
+
1.45%),
1.72%,
04/20/31
....
1,050
1,049,997
Series
2019-2A,
Class
D,
(LIBOR
USD
3
Month
+
3.95%),
4.22%,
04/20/31
....
250
247,753
Elmwood
CLO
V
Ltd.
(a)(b)
:
Series
2020-2A,
Class
B,
(LIBOR
USD
3
Month
+
2.20%),
2.47%,
07/24/31
....
620
619,946
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2020-2A,
Class
C,
(LIBOR
USD
3
Month
+
2.75%),
3.02%,
07/24/31
....
USD
620
$
615,755
Flatiron
CLO
Ltd.,
Series
2015-1A,
Class
AR,
(LIBOR
USD
3
Month
+
0.89%),
1.17%,
04/15/27
(a)(b)
.....................
482
480,988
Galaxy
XXIII
CLO
Ltd.,
Series
2017-23A,
Class
A,
(LIBOR
USD
3
Month
+
1.28%),
1.54%,
04/24/29
(a)(b)
.....................
577
573,401
Galaxy
XXIX
CLO
Ltd.
(a)(b)
:
Series
2018-29A,
Class
B,
(LIBOR
USD
3
Month
+
1.40%),
1.68%,
11/15/26
....
250
245,131
Series
2018-29A,
Class
C,
(LIBOR
USD
3
Month
+
1.68%),
1.96%,
11/15/26
....
350
332,713
Gilbert
Park
CLO
Ltd.,
Series
2017-1A,
Class
C,
(LIBOR
USD
3
Month
+
1.95%),
2.23%,
10/15/30
(a)(b)
.....................
640
613,575
Goldentree
Loan
Management
US
CLO
7
Ltd.,
Series
2020-7A,
Class
D,
(LIBOR
USD
3
Month
+
2.98%),
3.39%,
04/20/31
(a)(b)
....
510
503,790
GoldenTree
Loan
Opportunities
IX
Ltd.,
Series
2014-9A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.11%),
1.38%,
10/29/29
(a)(b)
.........
420
419,187
GoldentTree
Loan
Management
US
CLO
1
Ltd.
(a)(b)
:
Series
2017-1A,
Class
CR,
(LIBOR
USD
3
Month
+
1.85%),
2.12%,
04/20/29
....
630
609,484
Series
2017-1A,
Class
DR,
(LIBOR
USD
3
Month
+
2.65%),
2.92%,
04/20/29
....
360
334,159
Grippen
Park
CLO
Ltd.,
Series
2017-1A,
Class
A,
(LIBOR
USD
3
Month
+
1.26%),
1.53%,
01/20/30
(a)(b)
.....................
251
250,459
GSAA
Home
Equity
Trust,
Series
2006-5,
Class
2A1,
(LIBOR
USD
1
Month
+
0.07%),
0.22%,
03/25/36
(a)
......................
543
251,161
Gulf
Stream
Meridian
1
Ltd.,
Series
2020-IA,
Class
A1,
(LIBOR
USD
3
Month
+
1.37%),
1.64%,
04/15/33
(a)(b)
................
1,180
1,177,682
Halcyon
Loan
Advisors
Funding
Ltd.,
Series
2015-2A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.32%,
07/25/27
(a)(b)
..........
2,810
2,799,827
Highbridge
Loan
Management
Ltd.
(a)(b)
:
Series
12A-18,
Class
A1B,
(LIBOR
USD
3
Month
+
1.25%),
1.52%,
07/18/31
....
250
245,774
Series
6A-2015,
Class
A1R,
(LIBOR
USD
3
Month
+
1.00%),
1.25%,
02/05/31
....
3,009
2,961,540
HPS
Loan
Management
Ltd.,
Series
10A-16,
Class
A1R,
(LIBOR
USD
3
Month
+
1.14%),
1.41%,
01/20/28
(a)(b)
................
970
964,835
ICG
US
CLO
Ltd.,
Series
2015-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.14%),
1.41%,
10/19/28
(a)(b)
.....................
865
859,267
Invesco
Euro
CLO
II
DAC,
Series
2X,
Class
B1,
(EURIBOR
3
Month
+
1.80%),
1.80%,
08/15/32
(a)
......................
EUR
300
351,626
Invitation
Homes
Trust,
Series
2018-SFR3,
Class
A,
(LIBOR
USD
1
Month
+
1.00%),
1.15%,
07/17/37
(a)(b)
................
USD
634
634,079
Kayne
CLO
5
Ltd.,
Series
2019-5A,
Class
A,
(LIBOR
USD
3
Month
+
1.35%),
1.61%,
07/24/32
(a)(b)
.....................
800
798,086
LCM
XIV
LP,
Series
14A,
Class
AR,
(LIBOR
USD
3
Month
+
1.04%),
1.31%,
07/20/31
(a)(b)
250
244,846
LCM
XXI
LP,
Series
21A,
Class
AR,
(LIBOR
USD
3
Month
+
0.88%),
1.15%,
04/20/28
(a)(b)
820
812,848
Lendmark
Funding
Trust,
Series
2019-2A,
Class
A,
2.78%,
04/20/28
(b)
...........
2,600
2,628,881
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
19
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
LoanCore
Issuer
Ltd.,
Series
2018-CRE1,
Class
A,
(LIBOR
USD
1
Month
+
1.13%),
1.28%,
05/15/28
(a)(b)
.....................
USD
537
$
534,014
Madison
Park
Funding
X
Ltd.,
Series
2012-10A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.22%),
1.49%,
01/20/29
(a)(b)
................
1,700
1,693,797
Madison
Park
Funding
XI
Ltd.,
Series
2013-
11A,
Class
AR,
(LIBOR
USD
3
Month
+
1.16%),
1.42%,
07/23/29
(a)(b)
..........
2,000
1,988,371
Madison
Park
Funding
XIII
Ltd.
(a)(b)
:
Series
2014-13A,
Class
AR2,
(LIBOR
USD
3
Month
+
0.95%),
1.22%,
04/19/30
....
1,090
1,079,164
Series
2014-13A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.50%),
1.77%,
04/19/30
....
960
943,306
Madison
Park
Funding
XIX
Ltd.,
Series
2015-
19A,
Class
A1R2,
(LIBOR
USD
3
Month
+
0.92%),
1.18%,
01/22/28
(a)(b)
..........
1,229
1,219,408
Madison
Park
Funding
XVII
Ltd.,
Series
2015-
17A,
Class
B1R,
(LIBOR
USD
3
Month
+
1.75%),
2.02%,
07/21/30
(a)(b)
..........
350
345,118
Madison
Park
Funding
XXVI
Ltd.,
Series
2017-
26A,
Class
AR,
(LIBOR
USD
3
Month
+
1.20%),
1.47%,
07/29/30
(a)(b)
..........
1,665
1,648,882
Madison
Park
Funding
XXXVI
Ltd.,
Series
2019-36A,
Class
B1,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
01/15/33
(a)(b)
.........
530
527,567
Marble
Point
CLO
XI
Ltd.,
Series
2017-2A,
Class
A,
(LIBOR
USD
3
Month
+
1.18%),
1.45%,
12/18/30
(a)(b)
................
430
424,500
Mariner
CLO
8
Ltd.,
Series
2020-8A,
Class
A,
(LIBOR
USD
3
Month
+
1.27%),
2.44%,
04/20/33
(a)(b)
.....................
640
634,873
Mariner
CLO
LLC
(a)(b)
:
Series
2015-1A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.50%),
1.77%,
04/20/29
....
1,466
1,431,874
Series
2016-3A,
Class
CR2,
(LIBOR
USD
3
Month
+
2.05%),
2.31%,
07/23/29
(c)
...
1,125
1,112,288
Mariner
Finance
Issuance
Trust
(b)
:
Series
2020-AA,
Class
A,
2.19%,
08/21/34
.
1,510
1,515,017
Series
2020-AA,
Class
B,
3.21%,
08/21/34
260
262,201
Series
2020-AA,
Class
C,
4.10%,
08/21/34
330
335,616
MidOcean
Credit
CLO
III,
Series
2014-3A,
Class
A3A2,
(LIBOR
USD
3
Month
+
0.97%),
1.24%,
04/21/31
(a)(b)
................
477
467,504
Mid-State
Trust
VII,
Series
7,
Class
A,
6.34%,
12/15/36
.......................
1,075
1,136,282
Mountain
Hawk
II
CLO
Ltd.,
Series
2013-2A,
Class
BR,
(LIBOR
USD
3
Month
+
1.60%),
1.87%,
07/20/24
(a)(b)
................
332
331,233
MP
CLO
III
Ltd.,
Series
2013-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.25%),
1.52%,
10/20/30
(a)(b)
.....................
830
822,764
MP
CLO
VIII
Ltd.
(a)(b)
:
Series
2015-2A,
Class
AR,
(LIBOR
USD
3
Month
+
0.91%),
1.16%,
10/28/27
....
1,324
1,317,700
Series
2015-2A,
Class
BR,
(LIBOR
USD
3
Month
+
1.42%),
1.67%,
10/28/27
....
1,500
1,463,301
Navient
Private
Education
Refi
Loan
Trust,
Series
2020-A,
Class
A2B,
(LIBOR
USD
1
Month
+
0.90%),
1.05%,
11/15/68
(a)(b)
....
490
487,705
Neuberger
Berman
CLO
XX
Ltd.,
Series
2015-
20A,
Class
BR,
(LIBOR
USD
3
Month
+
1.25%),
1.53%,
01/15/28
(a)(b)
..........
250
245,095
Neuberger
Berman
Loan
Advisers
CLO
26
Ltd.,
Series
2017-26A,
Class
A,
(LIBOR
USD
3
Month
+
1.17%),
1.44%,
10/18/30
(a)(b)
....
1,430
1,418,351
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Neuberger
Berman
Loan
Advisers
CLO
37
Ltd.,
Series
2020-37A,
Class
B,
(LIBOR
USD
3
Month
+
2.20%),
2.37%,
07/20/31
(a)(b)(c)
...
USD
250
$
251,000
Neuberger
Berman
Loan
Advisers
CLO
Ltd.,
Series
2017-26A,
Class
B,
(LIBOR
USD
3
Month
+
1.50%),
1.77%,
10/18/30
(a)(b)
....
250
246,999
Oaktree
CLO,
Series
2014-1A,
Class
A2R,
(LIBOR
USD
3
Month
+
1.85%),
2.10%,
05/13/29
(a)(b)
.....................
410
398,214
Oaktree
CLO
Ltd.,
Series
2015-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
0.87%),
1.14%,
10/20/27
(a)(b)
.....................
422
420,946
Oaktree
EIF
III
Series
I
Ltd.,
Series
2016-IIIA,
Class
B,
(LIBOR
USD
3
Month
+
2.00%),
2.27%,
10/20/27
(a)(b)
................
250
248,737
OCP
CLO
Ltd.
(a)(b)
:
Series
2013-4A,
Class
BRR,
(LIBOR
USD
3
Month
+
1.90%),
2.16%,
04/24/29
....
945
899,563
Series
2014-5A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.08%),
1.32%,
04/26/31
....
140
139,040
Series
2015-10A,
Class
BR,
(LIBOR
USD
3
Month
+
1.85%),
2.09%,
10/26/27
....
380
371,305
Series
2016-12A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.12%),
1.39%,
10/18/28
....
640
637,822
Series
2017-13A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.26%),
1.54%,
07/15/30
....
2,610
2,600,929
Series
2017-14A,
Class
B,
(LIBOR
USD
3
Month
+
1.95%),
2.20%,
11/20/30
....
250
234,082
Series
2020-19A,
Class
B,
(LIBOR
USD
3
Month
+
2.50%),
2.82%,
07/20/31
....
250
249,952
OCP
Euro
CLO
DAC,
Series
2017-2X,
Class
B,
(EURIBOR
3
Month
+
1.35%),
1.35%,
01/15/32
(a)
......................
EUR
170
197,444
Octagon
Investment
Partners
18-R
Ltd.,
Series
2018-18A,
Class
A1A,
(LIBOR
USD
3
Month
+
0.96%),
1.23%,
04/16/31
(a)(b)
.........
USD
1,780
1,751,661
Octagon
Investment
Partners
32
Ltd.,
Series
2017-1A,
Class
B1,
(LIBOR
USD
3
Month
+
1.70%),
1.98%,
07/15/29
(a)(b)
..........
350
344,097
Octagon
Investment
Partners
46
Ltd.
(a)(b)
:
Series
2020-2A,
Class
B,
(LIBOR
USD
3
Month
+
2.20%),
2.45%,
07/15/33
....
710
709,981
Series
2020-2A,
Class
D,
(LIBOR
USD
3
Month
+
4.60%),
4.85%,
07/15/33
....
530
529,912
Octagon
Investment
Partners
XVI
Ltd.,
Series
2013-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.02%),
1.29%,
07/17/30
(a)(b)
.........
2,755
2,715,643
Octagon
Investment
Partners
XVII
Ltd.,
Series
2013-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.00%),
1.24%,
01/25/31
(a)(b)
.........
2,390
2,389,995
Octagon
Investment
Partners
XXIII
Ltd.,
Series
2015-1A,
Class
CR,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
07/15/27
(a)(b)
..........
660
635,666
OFSI
Fund
VII
Ltd.,
Series
2014-7A,
Class
AR,
(LIBOR
USD
3
Month
+
0.90%),
1.17%,
10/18/26
(a)(b)
.....................
32
31,922
OHA
Credit
Funding
3
Ltd.,
Series
2019-3A,
Class
B1,
(LIBOR
USD
3
Month
+
1.80%),
2.07%,
07/20/32
(a)(b)
................
668
658,944
OHA
Loan
Funding
Ltd.
(a)(b)
:
Series
2013-2A,
Class
AR,
(LIBOR
USD
3
Month
+
1.04%),
1.30%,
05/23/31
....
4,495
4,435,335
Series
2015-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.34%),
1.62%,
11/15/32
....
1,170
1,167,139
OneMain
Financial
Issuance
Trust
(b)
:
Series
2019-2A,
Class
A,
3.14%,
10/14/36
.
3,140
3,363,204
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
20
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2020-1A,
Class
A,
3.84%,
05/14/32
.
USD
2,800
$
2,945,053
Series
2020-2A,
Class
C,
2.76%,
09/14/35
.
550
555,425
Series
2020-2A,
Class
D,
3.45%,
09/14/35
.
1,410
1,434,208
OZLM
Funding
III
Ltd.,
Series
2013-3A,
Class
BRR,
(LIBOR
USD
3
Month
+
2.70%),
2.96%,
01/22/29
(a)(b)
................
990
983,956
OZLM
Funding
IV
Ltd.,
Series
2013-4A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.25%),
1.51%,
10/22/30
(a)(b)
................
9,077
9,032,725
OZLM
Ltd.,
Series
2019-24A,
Class
A2A,
(LIBOR
USD
3
Month
+
2.25%),
2.52%,
07/20/32
(a)(b)
.....................
250
249,998
OZLM
VI
Ltd.,
Series
2014-6A,
Class
A2AS,
(LIBOR
USD
3
Month
+
1.75%),
2.02%,
04/17/31
(a)(b)
.....................
250
246,986
OZLM
VIII
Ltd.,
Series
2014-8A,
Class
BRR,
(LIBOR
USD
3
Month
+
2.20%),
2.47%,
10/17/29
(a)(b)
.....................
340
331,512
OZLM
XIV
Ltd.,
Series
2015-14A,
Class
A2AR,
(LIBOR
USD
3
Month
+
1.70%),
1.98%,
01/15/29
(a)(b)
.....................
2,110
2,077,161
Palmer
Square
CLO
Ltd.
(a)(b)
:
Series
2015-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.22%),
1.47%,
05/21/29
....
2,420
2,412,750
Series
2015-1A,
Class
A2R2,
(LIBOR
USD
3
Month
+
1.65%),
1.90%,
05/21/29
....
530
520,527
Series
2015-2A,
Class
A2R2,
(LIBOR
USD
3
Month
+
1.55%),
1.82%,
07/20/30
....
500
494,444
Series
2018-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.03%),
1.30%,
04/18/31
....
850
834,696
Series
2018-2A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.10%),
1.37%,
07/16/31
....
1,070
1,058,007
Series
2018-3A,
Class
A2,
(LIBOR
USD
3
Month
+
1.35%),
1.63%,
08/15/26
....
776
762,818
Palmer
Square
Loan
Funding
Ltd.
(a)(b)
:
Series
2018-2A,
Class
A2,
(LIBOR
USD
3
Month
+
1.05%),
1.33%,
07/15/26
....
700
691,008
Series
2018-4A,
Class
A1,
(LIBOR
USD
3
Month
+
0.90%),
1.18%,
11/15/26
....
393
392,498
Series
2019-2A,
Class
C,
(LIBOR
USD
3
Month
+
3.25%),
3.52%,
04/20/27
....
250
229,922
Series
2019-3A,
Class
A2,
(LIBOR
USD
3
Month
+
1.60%),
1.85%,
08/20/27
....
440
434,319
Series
2019-3A,
Class
B,
(LIBOR
USD
3
Month
+
2.10%),
2.35%,
08/20/27
....
350
338,377
Series
2020-1A,
Class
A2,
(LIBOR
USD
3
Month
+
1.35%),
1.60%,
02/20/28
....
990
960,162
Series
2020-2A,
Class
A2,
(LIBOR
USD
3
Month
+
1.55%),
1.82%,
04/20/28
....
1,270
1,241,352
Series
2020-4A,
Class
A2,
(LIBOR
USD
3
Month
+
1.60%),
0.00%,
11/25/28
....
560
560,000
Park
Avenue
Institutional
Advisers
CLO
Ltd.
(a)(b)
:
Series
2017-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.22%),
1.48%,
11/14/29
....
1,870
1,859,523
Series
2017-1A,
Class
A2,
(LIBOR
USD
3
Month
+
1.70%),
1.96%,
11/14/29
....
780
765,518
Progress
Residential
Trust
(b)
:
Series
2017-SFR1,
Class
A,
2.77%,
08/17/34
.....................
736
749,203
Series
2020-SFR2,
Class
D,
3.87%,
06/17/37
.....................
400
418,964
Race
Point
IX
CLO
Ltd.,
Series
2015-9A,
Class
A1AR,
(LIBOR
USD
3
Month
+
1.21%),
1.49%,
10/15/30
(a)(b)
................
716
715,133
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Regatta
VI
Funding
Ltd.,
Series
2016-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.35%,
07/20/28
(a)(b)
.....................
USD
2,360
$
2,356,226
Riserva
CLO
Ltd.,
Series
2016-3A,
Class
AR,
(LIBOR
USD
3
Month
+
1.14%),
1.41%,
10/18/28
(a)(b)
.....................
1,040
1,031,435
Rockford
Tower
CLO
Ltd.
(a)(b)
:
Series
2017-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.03%),
1.31%,
04/15/29
....
2,060
2,044,842
Series
2017-1A,
Class
BR,
(LIBOR
USD
3
Month
+
1.45%),
1.73%,
04/15/29
....
960
941,182
Series
2017-1A,
Class
CR,
(LIBOR
USD
3
Month
+
1.85%),
2.13%,
04/15/29
....
510
486,932
Series
2017-2A,
Class
BR,
(LIBOR
USD
3
Month
+
1.50%),
1.78%,
10/15/29
....
1,695
1,643,733
Series
2017-2A,
Class
DR,
(LIBOR
USD
3
Month
+
2.85%),
3.13%,
10/15/29
....
1,039
1,025,067
Series
2017-3A,
Class
A,
(LIBOR
USD
3
Month
+
1.19%),
1.46%,
10/20/30
....
3,237
3,223,891
Series
2018-1A,
Class
A,
(LIBOR
USD
3
Month
+
1.10%),
1.35%,
05/20/31
....
297
294,644
Series
2018-2A,
Class
A,
(LIBOR
USD
3
Month
+
1.16%),
1.43%,
10/20/31
....
250
248,491
Series
2019-2A,
Class
B,
(LIBOR
USD
3
Month
+
1.93%),
2.18%,
08/20/32
....
250
245,915
Rockford
Tower
Europe
CLO
DAC,
Series
2018-1X,
Class
B,
(EURIBOR
3
Month
+
1.85%),
1.85%,
12/20/31
(a)
...........
EUR
826
969,202
Romark
WM-R
Ltd.,
Series
2018-1A,
Class
A1,
(LIBOR
USD
3
Month
+
1.03%),
1.30%,
04/20/31
(a)(b)
.....................
USD
713
711,209
RR
11
Ltd.,
Series
2020-11A,
Class
A2,
(LIBOR
USD
3
Month
+
2.10%),
2.28%,
10/15/31
(a)(b)
870
869,997
RR
2
Ltd.,
Series
2017-2A,
Class
A2,
(LIBOR
USD
3
Month
+
1.60%),
1.87%,
10/15/29
(a)(b)
250
244,445
RR
3
Ltd.,
Series
2018-3A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.09%),
1.37%,
01/15/30
(a)(b)
.....................
670
663,260
RR
6
Ltd.,
Series
2019-6A,
Class
A1A,
(LIBOR
USD
3
Month
+
1.25%),
1.53%,
04/15/30
(a)(b)
2,140
2,130,893
RRE
2
Loan
Management
DAC,
Series
2A,
Class
B,
(EURIBOR
3
Month
+
1.80%),
1.80%,
01/15/32
(a)(b)
................
EUR
250
293,320
Silver
Creek
CLO
Ltd.,
Series
2014-1A,
Class
CR,
(LIBOR
USD
3
Month
+
2.30%),
2.57%,
07/20/30
(a)(b)
.....................
USD
500
480,909
SLM
Private
Credit
Student
Loan
Trust
(a)
:
Series
2004-B,
Class
A3,
(LIBOR
USD
3
Month
+
0.33%),
0.58%,
03/15/24
....
690
683,607
Series
2006-A,
Class
A5,
(LIBOR
USD
3
Month
+
0.29%),
0.54%,
06/15/39
....
3,082
2,931,748
SLM
Private
Education
Loan
Trust,
Series
2010-C,
Class
A5,
(LIBOR
USD
1
Month
+
4.75%),
4.90%,
10/15/41
(a)(b)
..........
3,683
4,013,859
SMB
Private
Education
Loan
Trust
(b)
:
Series
2015-B,
Class
B,
3.50%,
12/17/40
..
990
1,017,341
Series
2020-BA,
Class
B,
2.76%,
07/15/53
510
507,423
Series
2020-PTA,
Class
A2A,
1.60%,
09/15/54
.....................
4,730
4,759,470
Series
2020-PTA,
Class
B,
2.50%,
09/15/54
1,540
1,513,498
Sound
Point
CLO
XIV
Ltd.,
Series
2016-3A,
Class
AR,
(LIBOR
USD
3
Month
+
1.15%),
1.41%,
01/23/29
(a)(b)
................
1,000
996,983
Sound
Point
CLO
XV
Ltd.,
Series
2017-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.15%),
1.41%,
01/23/29
(a)(b)
................
280
277,930
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
21
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Sound
Point
CLO
XXIII
Ltd.,
Series
2019-2A,
Class
A1,
(LIBOR
USD
3
Month
+
1.40%),
1.68%,
04/15/32
(a)(b)
................
USD
4,180
$
4,145,525
Sound
Point
Euro
CLO
I
Funding
DAC,
Series
1X,
Class
B1,
(EURIBOR
3
Month
+
2.00%),
2.00%,
04/25/32
(a)
.................
EUR
140
163,522
Sound
Point
Euro
CLO
II
Funding
DAC,
Series
2A,
Class
B1,
(EURIBOR
3
Month
+
1.85%),
1.85%,
10/26/32
(a)(b)
................
610
716,259
St.
Paul's
CLO
XII
DAC,
Series
12X,
Class
B1,
(EURIBOR
3
Month
+
1.60%),
1.60%,
04/15/33
(a)
......................
310
357,605
Steele
Creek
CLO
Ltd.,
Series
2017-1A,
Class
A,
(LIBOR
USD
3
Month
+
1.25%),
1.53%,
10/15/30
(a)(b)
.....................
USD
1,070
1,054,325
Sutton
Park
CLO
DAC,
Series
1X,
Class
BE,
(EURIBOR
3
Month
+
2.35%),
2.35%,
11/15/31
(a)
......................
EUR
202
231,993
Symphony
CLO
XVII
Ltd.,
Series
2016-17A,
Class
AR,
(LIBOR
USD
3
Month
+
0.88%),
1.15%,
04/15/28
(a)(b)
................
USD
875
867,808
Symphony
CLO
XVIII
Ltd.,
Series
2016-18A,
Class
AR,
(LIBOR
USD
3
Month
+
1.15%),
1.41%,
01/23/28
(a)(b)
................
900
894,825
Symphony
CLO
XXI
Ltd.,
Series
2019-21A,
Class
A,
(LIBOR
USD
3
Month
+
1.38%),
1.65%,
07/15/32
(a)(b)
................
860
859,546
TCW
CLO
Ltd.,
Series
2020-1A,
Class
D,
(LIBOR
USD
3
Month
+
4.50%),
5.26%,
04/20/28
(a)(b)
.....................
500
500,461
THL
Credit
Wind
River
CLO
Ltd.
(a)(b)
:
Series
2012-1A,
Class
BR2,
(LIBOR
USD
3
Month
+
1.45%),
1.73%,
01/15/26
....
280
276,873
Series
2016-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.05%),
1.33%,
07/15/28
....
1,120
1,117,447
TIAA
CLO
III
Ltd.,
Series
2017-2A,
Class
A,
(LIBOR
USD
3
Month
+
1.15%),
1.42%,
01/16/31
(a)(b)
.....................
910
897,953
TICP
CLO
IX
Ltd.,
Series
2017-9A,
Class
A,
(LIBOR
USD
3
Month
+
1.14%),
1.41%,
01/20/31
(a)(b)
.....................
670
663,302
TICP
CLO
VI
Ltd.
(a)(b)
:
Series
2016-6A,
Class
AR,
(LIBOR
USD
3
Month
+
1.20%),
1.47%,
01/15/29
....
480
477,386
Series
2016-6A,
Class
BR,
(LIBOR
USD
3
Month
+
1.70%),
1.98%,
01/15/29
....
1,190
1,170,079
Towd
Point
Mortgage
Trust,
Series
2019-SJ2,
Class
M1,
4.50%,
11/25/58
(b)(d)
.........
3,000
3,123,055
Trestles
CLO
III
Ltd.
(a)(b)
:
Series
2020-3A,
Class
A1,
(LIBOR
USD
3
Month
+
1.33%),
1.60%,
01/20/33
....
1,830
1,826,411
Series
2020-3A,
Class
B1,
(LIBOR
USD
3
Month
+
1.85%),
2.12%,
01/20/33
....
530
529,998
Tricon
American
Homes,
Series
2020-SFR1,
Class
D,
2.55%,
07/17/38
(b)
...........
2,225
2,271,437
Union
Pacific
Railroad
Co.
Pass-Through
Trust,
Series
2014-1,  3.23%,
05/14/26
.......
1,334
1,480,020
Venture
32
CLO
Ltd.,
Series
2018-32A,
Class
A2A,
(LIBOR
USD
3
Month
+
1.07%),
1.34%,
07/18/31
(a)(b)
................
350
344,836
Venture
35
CLO
Ltd.,
Series
2018-35A,
Class
AS,
(LIBOR
USD
3
Month
+
1.15%),
1.41%,
10/22/31
(a)(b)
.....................
660
661,324
Venture
XVIII
CLO
Ltd.,
Series
2014-18A,
Class
AR,
(LIBOR
USD
3
Month
+
1.22%),
1.50%,
10/15/29
(a)(b)
.....................
3,230
3,183,763
Security
Par
(000)
Par
(000)
Value
Asset-Backed
Securities
(continued)
Voya
CLO
Ltd.
(a)(b)
:
Series
2014-3A,
Class
CR,
(LIBOR
USD
3
Month
+
2.65%),
2.89%,
07/25/26
....
USD
350
$
327,985
Series
2017-4A,
Class
A1,
(LIBOR
USD
3
Month
+
1.13%),
1.41%,
10/15/30
....
1,680
1,670,970
Series
2019-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.06%),
1.33%,
04/15/31
....
2,064
2,044,678
Voya
Euro
CLO
II
DAC,
Series
2X,
Class
C,
(EURIBOR
3
Month
+
2.75%),
2.75%,
07/15/32
(a)
......................
EUR
170
199,356
Westcott
Park
CLO
Ltd.,
Series
2016-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.21%),
1.48%,
07/20/28
(a)(b)
.....................
USD
1,210
1,205,166
Whitebox
CLO
I
Ltd.,
Series
2019-1A,
Class
C,
(LIBOR
USD
3
Month
+
4.35%),
4.61%,
07/24/32
(a)(b)
.....................
650
645,488
Whitebox
CLO
II
Ltd.
(a)(b)
:
Series
2020-2A,
Class
A1,
(LIBOR
USD
3
Month
+
1.75%),
1.99%,
10/24/31
....
280
279,434
Series
2020-2A,
Class
B,
(LIBOR
USD
3
Month
+
2.25%),
2.49%,
10/24/31
....
280
276,193
Series
2020-2A,
Class
D,
(LIBOR
USD
3
Month
+
4.15%),
4.39%,
10/24/31
....
280
278,274
York
CLO-2
Ltd.,
Series
2015-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.15%),
1.41%,
01/22/31
(a)(b)
.....................
1,250
1,240,179
York
CLO-3
Ltd.
(a)(b)
:
Series
2016-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.25%),
1.52%,
10/20/29
....
520
515,226
Series
2016-1A,
Class
BR,
(LIBOR
USD
3
Month
+
1.75%),
2.02%,
10/20/29
....
930
914,010
York
CLO-4
Ltd.,
Series
2016-2A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.09%),
1.36%,
04/20/32
(a)(b)(c)
....................
1,050
1,034,250
Total
Asset-Backed
Securities
—
6.9%
(Cost:
$295,860,690)
..............................
294,932,233
Corporate
Bonds
—
36.6%
Aerospace
&
Defense
—
2.0%
BAE
Systems
Holdings,
Inc.
(b)
:
2.85%,
12/15/20
..................
728
730,008
3.80%,
10/07/24
..................
962
1,067,780
3.85%,
12/15/25
..................
5,207
5,877,679
4.75%,
10/07/44
..................
87
111,052
BAE
Systems
plc,
3.40%,
04/15/30
(b)
......
3,193
3,568,534
Boeing
Co.
(The):
4.88%,
05/01/25
..................
1,084
1,179,528
3.83%,
03/01/59
..................
195
171,876
5.93%,
05/01/60
..................
1,415
1,751,260
Embraer
Netherlands
Finance
BV,
5.40%,
02/01/27
......................
218
205,874
Embraer
Overseas
Ltd.,
5.70%,
09/16/23
...
308
311,994
General
Dynamics
Corp.:
3.75%,
05/15/28
..................
1,569
1,841,802
3.63%,
04/01/30
..................
2,602
3,094,392
Huntington
Ingalls
Industries,
Inc.
(b)
:
3.84%,
05/01/25
..................
1,635
1,796,529
4.20%,
05/01/30
..................
2,110
2,421,846
L3Harris
Technologies,
Inc.:
3.95%,
05/28/24
..................
627
690,560
4.40%,
06/15/28
..................
7,791
9,286,989
Leidos,
Inc.,
4.38%,
05/15/30
(b)
.........
3,335
3,908,453
Lockheed
Martin
Corp.:
3.60%,
03/01/35
..................
4,168
5,013,810
4.07%,
12/15/42
..................
1,547
1,932,574
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
22
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Aerospace
&
Defense
(continued)
2.80%,
06/15/50
..................
USD
2,088
$
2,194,583
Northrop
Grumman
Corp.:
2.93%,
01/15/25
..................
2,721
2,960,595
3.20%,
02/01/27
..................
391
437,039
3.25%,
01/15/28
..................
7,366
8,276,253
4.75%,
06/01/43
..................
329
428,494
4.03%,
10/15/47
..................
6
7,346
5.25%,
05/01/50
..................
579
830,574
Raytheon
Technologies
Corp.:
3.65%,
08/16/23
..................
155
167,485
3.15%,
12/15/24
(b)
.................
920
993,852
3.95%,
08/16/25
..................
2,422
2,752,447
7.20%,
08/15/27
(b)
.................
630
851,150
7.00%,
11/01/28
(b)
.................
2,010
2,755,170
7.50%,
09/15/29
..................
913
1,327,011
2.15%,
05/18/30
..................
EUR
1,815
2,366,717
2.25%,
07/01/30
..................
USD
4,525
4,785,807
5.40%,
05/01/35
..................
105
142,703
4.20%,
12/15/44
(b)
.................
515
583,696
4.15%,
05/15/45
..................
799
958,425
Textron,
Inc.:
3.88%,
03/01/25
..................
810
887,605
3.65%,
03/15/27
..................
845
919,408
3.90%,
09/17/29
..................
3,111
3,485,493
83,074,393
Air
Freight
&
Logistics
—
0.3%
FedEx
Corp.:
4.20%,
10/17/28
..................
68
79,885
1.30%,
08/05/31
..................
EUR
1,470
1,768,554
3.88%,
08/01/42
..................
USD
1,070
1,179,920
United
Parcel
Service,
Inc.:
3.40%,
03/15/29
..................
2,839
3,279,435
2.50%,
09/01/29
..................
744
813,460
4.45%,
04/01/30
..................
684
856,236
5.20%,
04/01/40
..................
1,911
2,647,101
10,624,591
Airlines
—
0.5%
Air
Canada
Pass-Through
Trust
(b)
:
Series
2015-2,
Class
B,
5.00%,
12/15/23
.
382
317,194
Series
2017-1,
Class
B,
3.70%,
01/15/26
.
8
6,561
Series
2017-1,
Class
AA,
3.30%,
01/15/30
456
433,507
Alaska
Airlines
Pass-Through
Trust,
Series
2020-1,
Class
A,
4.80%,
08/15/27
(b)
.....
1,880
1,968,839
American
Airlines
Pass-Through
Trust:
Series
2015-2,
Class
B,
4.40%,
09/22/23
.
1,739
1,251,935
Series
2016-1,
Class
B,
5.25%,
01/15/24
.
1,276
881,710
Series
2016-2,
Class
B,
4.38%,
06/15/24
(b)
740
500,882
Series
2017-1,
Class
B,
4.95%,
02/15/25
.
612
431,498
Series
2017-2,
Class
B,
3.70%,
10/15/25
.
383
243,615
Series
2016-3,
Class
B,
3.75%,
10/15/25
.
19
13,065
Series
2015-2,
Class
AA,
3.60%,
09/22/27
331
317,643
Series
2016-1,
Class
AA,
3.58%,
01/15/28
2,469
2,368,925
Series
2019-1,
Class
B,
3.85%,
02/15/28
.
1,156
763,947
Series
2016-2,
Class
AA,
3.20%,
06/15/28
471
442,621
Series
2016-3,
Class
AA,
3.00%,
10/15/28
988
923,327
Series
2017-1,
Class
AA,
3.65%,
02/15/29
375
361,095
Series
2017-2,
Class
AA,
3.35%,
10/15/29
721
683,378
Series
2019-1,
Class
AA,
3.15%,
02/15/32
1,096
1,033,202
Delta
Air
Lines
Pass-Through
Trust,
Series
2019-1,
Class
AA,
3.20%,
04/25/24
.....
2,780
2,770,587
JetBlue
Pass-Through
Trust,
Series
2020-1,
Class
A,
4.00%,
11/15/32
...........
2,065
2,136,697
United
Airlines
Pass-Through
Trust:
Series
2014-1,
Class
B,
4.75%,
04/11/22
.
18
16,091
Security
Par
(000)
Par
(000)
Value
Airlines
(continued)
Series
2014-2,
Class
B,
4.63%,
09/03/22
.
USD
146
$
135,530
Series
2016-2,
Class
B,
3.65%,
10/07/25
.
93
70,127
Series
2016-1,
Class
B,
3.65%,
01/07/26
.
126
95,755
Series
2018-1,
Class
B,
4.60%,
03/01/26
.
490
379,933
Series
2015-1,
Class
AA,
3.45%,
12/01/27
972
952,396
Series
2019-2,
Class
B,
3.50%,
05/01/28
.
1,193
872,821
Series
2016-1,
Class
AA,
3.10%,
07/07/28
57
56,044
Series
2016-2,
Class
AA,
2.88%,
10/07/28
475
450,736
Series
2018-1,
Class
AA,
3.50%,
03/01/30
581
550,689
Series
2019-1,
Class
AA,
4.15%,
08/25/31
665
663,275
Series
2019-2,
Class
AA,
2.70%,
05/01/32
885
837,153
22,930,778
Automobiles
—
0.3%
Daimler
Finance
North
America
LLC
(b)
:
2.30%,
02/12/21
..................
3,005
3,023,443
3.35%,
05/04/21
..................
3,060
3,108,822
General
Motors
Co.,
6.25%,
10/02/43
.....
682
808,213
Hyundai
Capital
America
(b)
:
3.95%,
02/01/22
..................
290
300,331
2.38%,
02/10/23
..................
3,260
3,342,511
Nissan
Motor
Co.
Ltd.,
4.81%,
09/17/30
(b)
...
3,191
3,210,161
13,793,481
Banks
—
6.4%
Banco
de
Credito
del
Peru,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.00%),
3.13%,
07/01/30
(a)(b)
........
703
703,000
Banco
Internacional
del
Peru
SAA
Interbank,
3.25%,
10/04/26
(b)
................
360
375,975
Banco
Nacional
de
Panama,
2.50%,
08/11/30
(b)
347
341,504
Banco
Santander
Mexico
SA
Institucion
de
Banca
Multiple
Grupo
Financiero
Santand,
5.38%,
04/17/25
(b)
................
731
809,473
Banco
Santander
SA:
2.71%,
06/27/24
..................
2,800
2,962,456
3.31%,
06/27/29
..................
1,800
1,957,902
Bank
of
America
Corp.:
(LIBOR
USD
3
Month
+
0.37%),
2.74%,
01/23/22
(a)
....................
1,534
1,544,796
5.70%,
01/24/22
..................
751
802,887
(LIBOR
USD
3
Month
+
0.63%),
3.50%,
05/17/22
(a)
....................
6,024
6,136,939
(LIBOR
USD
3
Month
+
0.79%),
3.00%,
12/20/23
(a)
....................
843
884,977
4.20%,
08/26/24
..................
1,567
1,745,072
4.00%,
01/22/25
..................
443
493,502
Series
L,
3.95%,
04/21/25
...........
901
1,000,864
(LIBOR
USD
3
Month
+
0.87%),
2.46%,
10/22/25
(a)
....................
3,690
3,890,470
4.45%,
03/03/26
..................
2,675
3,085,195
(LIBOR
USD
3
Month
+
1.58%),
3.82%,
01/20/28
(a)
....................
6,362
7,190,777
Series
FF,
(LIBOR
USD
3
Month
+
2.93%),
5.87%
(a)(e)
.....................
1,895
2,043,290
(LIBOR
USD
3
Month
+
1.51%),
3.71%,
04/24/28
(a)
....................
4,068
4,600,032
(LIBOR
USD
3
Month
+
1.37%),
3.59%,
07/21/28
(a)
....................
11,443
12,851,161
(LIBOR
USD
3
Month
+
1.04%),
3.42%,
12/20/28
(a)
....................
8,681
9,660,005
(LIBOR
USD
3
Month
+
1.31%),
4.27%,
07/23/29
(a)
....................
1,605
1,882,765
(LIBOR
USD
3
Month
+
1.18%),
3.19%,
07/23/30
(a)
....................
859
945,042
(LIBOR
USD
3
Month
+
1.19%),
2.88%,
10/22/30
(a)
....................
2,909
3,141,988
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
23
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
(LIBOR
USD
3
Month
+
1.32%),
4.08%,
04/23/40
(a)
....................
USD
645
$
767,992
(SOFR
+
1.93%),
2.68%,
06/19/41
(a)
....
1,012
1,033,334
Barclays
plc:
4.38%,
01/12/26
..................
525
588,166
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.90%),
2.64%,
06/24/31
(a)
...............
2,389
2,383,419
BBVA
Bancomer
SA,
6.75%,
09/30/22
(b)
....
665
716,953
BNP
Paribas
SA
(b)
:
3.50%,
03/01/23
..................
2,516
2,666,894
(LIBOR
USD
3
Month
+
1.11%),
2.82%,
11/19/25
(a)
....................
4,612
4,860,215
(SOFR
+
1.51%),
3.05%,
01/13/31
(a)
....
3,353
3,595,970
Citigroup,
Inc.:
4.40%,
06/10/25
..................
775
874,439
3.70%,
01/12/26
..................
2,082
2,333,096
4.60%,
03/09/26
..................
1,304
1,494,837
3.20%,
10/21/26
..................
2,613
2,882,400
(LIBOR
USD
3
Month
+
1.39%),
3.67%,
07/24/28
(a)
....................
7,297
8,202,648
(LIBOR
USD
3
Month
+
1.19%),
4.07%,
04/23/29
(a)
....................
5,536
6,403,064
(SOFR
+
1.42%),
2.98%,
11/05/30
(a)
.....
4,248
4,592,648
(SOFR
+
3.91%),
4.41%,
03/31/31
(a)
....
2,713
3,252,144
Citizens
Financial
Group,
Inc.,
3.25%,
04/30/30
1,112
1,227,478
Credicorp
Ltd.,
2.75%,
06/17/25
(b)
........
200
202,550
Credit
Suisse
Group
Funding
Guernsey
Ltd.:
3.80%,
09/15/22
..................
2,099
2,221,049
3.80%,
06/09/23
..................
261
280,790
Danske
Bank
A/S
(b)
:
5.00%,
01/12/22
..................
7,968
8,370,771
(LIBOR
USD
3
Month
+
1.25%),
3.00%,
09/20/22
(a)
....................
206
209,910
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.03%),
1.17%,
12/08/23
(a)
...............
287
287,278
5.38%,
01/12/24
..................
4,145
4,662,312
Discover
Bank,
4.65%,
09/13/28
.........
3,977
4,680,662
Fifth
Third
Bancorp,
1.63%,
05/05/23
......
709
728,005
Grupo
Aval
Ltd.:
4.75%,
09/26/22
..................
232
237,800
4.38%,
02/04/30
(b)
.................
845
814,496
HSBC
Holdings
plc:
(LIBOR
USD
3
Month
+
1.06%),
3.26%,
03/13/23
(a)
....................
250
258,456
(LIBOR
USD
3
Month
+
1.35%),
4.29%,
09/12/26
(a)
....................
623
695,573
(LIBOR
USD
3
Month
+
1.55%),
4.04%,
03/13/28
(a)
....................
632
698,476
(SOFR
+
1.73%),
2.01%,
09/22/28
(a)
....
818
810,848
(LIBOR
USD
3
Month
+
1.53%),
4.58%,
06/19/29
(a)
....................
1,201
1,385,631
4.95%,
03/31/30
..................
1,236
1,487,901
(LIBOR
USD
3
Month
+
1.61%),
3.97%,
05/22/30
(a)
....................
1,782
1,989,547
ING
Groep
NV:
4.10%,
10/02/23
..................
4,284
4,694,044
4.63%,
01/06/26
(b)
.................
2,024
2,373,890
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.10%),
1.40%,
07/01/26
(a)(b)
..............
1,850
1,871,095
JPMorgan
Chase
&
Co.:
2.97%,
01/15/23
..................
119
122,882
(LIBOR
USD
3
Month
+
0.70%),
3.21%,
04/01/23
(a)
....................
1,962
2,038,694
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
(LIBOR
USD
3
Month
+
0.73%),
3.56%,
04/23/24
(a)
....................
USD
289
$
309,895
(LIBOR
USD
3
Month
+
0.89%),
3.80%,
07/23/24
(a)
....................
2,839
3,075,435
3.88%,
09/10/24
..................
997
1,105,859
3.90%,
07/15/25
..................
3,004
3,397,899
(SOFR
+
1.16%),
2.30%,
10/15/25
(a)
....
3,113
3,275,268
(SOFR
+
1.59%),
2.00%,
03/13/26
(a)
....
8,630
8,935,101
(LIBOR
USD
3
Month
+
1.25%),
3.96%,
01/29/27
(a)
....................
6,737
7,672,692
(LIBOR
USD
3
Month
+
1.34%),
3.78%,
02/01/28
(a)
....................
6,262
7,082,563
(LIBOR
USD
3
Month
+
1.38%),
3.54%,
05/01/28
(a)
....................
5,817
6,552,258
(LIBOR
USD
3
Month
+
1.33%),
4.45%,
12/05/29
(a)
....................
6,466
7,774,036
(SOFR
+
3.79%),
4.49%,
03/24/31
(a)
....
1,069
1,304,546
4.85%,
02/01/44
..................
1,564
2,108,599
(LIBOR
USD
3
Month
+
1.46%),
4.03%,
07/24/48
(a)
....................
1,589
1,934,139
KeyCorp:
4.15%,
10/29/25
..................
139
159,857
4.10%,
04/30/28
..................
498
584,187
Lloyds
Banking
Group
plc,
3.75%,
01/11/27
..
3,479
3,850,818
Mitsubishi
UFJ
Financial
Group,
Inc.:
3.00%,
02/22/22
..................
1,276
1,318,645
3.46%,
03/02/23
..................
3,633
3,870,730
2.19%,
02/25/25
..................
3,939
4,125,546
Mizuho
Financial
Group,
Inc.:
(LIBOR
USD
3
Month
+
0.84%),
2.72%,
07/16/23
(a)
....................
200
207,045
(LIBOR
USD
3
Month
+
0.98%),
2.84%,
07/16/25
(a)
....................
542
575,230
(LIBOR
USD
3
Month
+
1.10%),
2.55%,
09/13/25
(a)
....................
2,440
2,564,467
(LIBOR
USD
3
Month
+
0.83%),
2.23%,
05/25/26
(a)
....................
3,201
3,327,423
3.66%,
02/28/27
..................
203
226,612
(LIBOR
USD
3
Month
+
1.27%),
1.98%,
09/08/31
(a)
....................
1,788
1,775,963
Natwest
Group
plc,
(LIBOR
USD
3
Month
+
1.48%),
3.50%,
05/15/23
(a)
...........
457
473,316
Santander
UK
Group
Holdings
plc:
2.88%,
08/05/21
..................
3,006
3,066,456
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.25%),
1.53%,
08/21/26
(a)
...............
963
948,170
Standard
Chartered
plc,
(LIBOR
USD
3
Month
+
1.08%),
3.89%,
03/15/24
(a)(b)
........
654
689,316
Sumitomo
Mitsui
Financial
Group,
Inc.:
2.70%,
07/16/24
..................
4,741
5,044,349
2.45%,
09/27/24
..................
294
310,598
2.35%,
01/15/25
..................
1,251
1,317,736
1.47%,
07/08/25
..................
828
843,227
Wells
Fargo
&
Co.:
2.63%,
07/22/22
..................
1,874
1,942,960
3.75%,
01/24/24
..................
5,183
5,631,438
(LIBOR
USD
3
Month
+
0.83%),
2.41%,
10/30/25
(a)
....................
2,301
2,409,436
3.00%,
04/22/26
..................
3,771
4,105,217
(LIBOR
USD
3
Month
+
1.31%),
3.58%,
05/22/28
(a)
....................
2,235
2,501,951
(SOFR
+
2.10%),
2.39%,
06/02/28
(a)
....
1,798
1,875,816
(LIBOR
USD
3
Month
+
1.17%),
2.88%,
10/30/30
(a)
....................
3,233
3,471,911
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
24
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Banks
(continued)
(LIBOR
USD
3
Month
+
1.00%),
2.57%,
02/11/31
(a)
....................
USD
1,074
$
1,127,498
(SOFR
+
2.53%),
3.07%,
04/30/41
(a)
....
2,524
2,640,358
Wells
Fargo
Bank
NA,
(LIBOR
USD
3
Month
+
0.61%),
2.90%,
05/27/22
(a)
...........
525
533,260
274,096,255
Beverages
—
0.8%
Anheuser-Busch
Cos.
LLC,
4.70%,
02/01/36
.
6,423
7,759,113
Anheuser-Busch
InBev
Worldwide,
Inc.:
4.75%,
01/23/29
..................
10,002
12,206,630
3.50%,
06/01/30
..................
4,474
5,090,209
8.20%,
01/15/39
..................
5
8,128
5.45%,
01/23/39
..................
259
335,312
Coca-Cola
Co.
(The):
2.50%,
06/01/40
..................
930
975,137
2.75%,
06/01/60
..................
1,700
1,726,559
Coca-Cola
Femsa
SAB
de
CV,
1.85%,
09/01/32
540
544,482
Embotelladora
Andina
SA,
3.95%,
01/21/50
(b)
.
436
461,206
Fomento
Economico
Mexicano
SAB
de
CV,
3.50%,
01/16/50
.................
582
614,519
Keurig
Dr
Pepper,
Inc.,
3.20%,
05/01/30
....
1,416
1,588,668
Molson
Coors
Beverage
Co.,
5.00%,
05/01/42
481
544,759
PepsiCo,
Inc.:
4.60%,
07/17/45
..................
363
497,337
4.00%,
05/02/47
..................
388
489,922
32,841,981
Biotechnology
—
0.7%
AbbVie,
Inc.:
2.30%,
11/21/22
(b)
.................
735
760,524
2.60%,
11/21/24
(b)
.................
1,784
1,890,155
3.80%,
03/15/25
(b)
.................
8,324
9,230,005
3.20%,
05/14/26
..................
609
670,463
4.55%,
03/15/35
(b)
.................
235
288,917
4.50%,
05/14/35
..................
2,625
3,194,927
4.05%,
11/21/39
(b)
.................
499
573,829
4.63%,
10/01/42
(b)
.................
98
119,283
4.70%,
05/14/45
..................
1,072
1,319,955
4.88%,
11/14/48
..................
462
586,674
Amgen,
Inc.:
2.45%,
02/21/30
..................
1,816
1,924,843
2.30%,
02/25/31
..................
610
639,914
4.40%,
05/01/45
..................
2,156
2,671,054
Biogen,
Inc.,
2.25%,
05/01/30
..........
1,309
1,340,518
Gilead
Sciences,
Inc.:
1.20%,
10/01/27
..................
443
444,334
4.80%,
04/01/44
..................
421
542,640
4.75%,
03/01/46
..................
1,433
1,866,809
28,064,844
Building
Products
—
0.3%
Carrier
Global
Corp.
(b)
:
1.92%,
02/15/23
..................
1,337
1,375,643
2.24%,
02/15/25
..................
10,659
11,119,163
Johnson
Controls
International
plc:
4.63%,
07/02/44
(f)
.................
203
253,789
5.13%,
09/14/45
..................
10
13,201
Owens
Corning,
3.88%,
06/01/30
........
864
978,006
13,739,802
Capital
Markets
—
2.3%
Bank
of
New
York
Mellon
Corp.
(The):
3.40%,
01/29/28
..................
1,428
1,651,294
(LIBOR
USD
3
Month
+
1.07%),
3.44%,
02/07/28
(a)
....................
1,555
1,783,946
Charles
Schwab
Corp.
(The),
3.20%,
03/02/27
725
812,785
Security
Par
(000)
Par
(000)
Value
Capital
Markets
(continued)
Credit
Suisse
AG,
3.63%,
09/09/24
.......
USD
1,064
$
1,177,138
Credit
Suisse
Group
AG
(a)(b)
:
(LIBOR
USD
3
Month
+
1.20%),
3.00%,
12/14/23
.....................
1,682
1,750,850
(SOFR
+
3.73%),
4.19%,
04/01/31
......
7,056
8,146,082
E*TRADE
Financial
Corp.,
3.80%,
08/24/27
..
165
185,501
Goldman
Sachs
Group,
Inc.
(The):
2.35%,
11/15/21
..................
2,637
2,643,044
3.85%,
07/08/24
..................
571
627,963
3.50%,
01/23/25
..................
2,174
2,385,318
3.50%,
04/01/25
..................
6,702
7,396,796
3.75%,
05/22/25
..................
544
604,603
3.75%,
02/25/26
..................
1,451
1,633,116
(LIBOR
USD
3
Month
+
1.75%),
2.00%,
10/28/27
(a)
....................
400
416,589
(LIBOR
USD
3
Month
+
1.51%),
3.69%,
06/05/28
(a)
....................
8,125
9,107,546
Huarong
Finance
2019
Co.
Ltd.,
4.50%,
05/29/29
......................
300
322,406
Intercontinental
Exchange,
Inc.:
3.75%,
09/21/28
..................
1,235
1,429,182
1.85%,
09/15/32
..................
1,956
1,943,419
Moody's
Corp.,
4.88%,
02/15/24
.........
316
357,145
Morgan
Stanley:
(SOFR
+
1.15%),
2.72%,
07/22/25
(a)
....
1,776
1,886,595
4.00%,
07/23/25
..................
1,197
1,352,910
3.88%,
01/27/26
..................
3,981
4,537,444
(SOFR
+
1.99%),
2.19%,
04/28/26
(a)
....
1,129
1,182,384
3.13%,
07/27/26
..................
942
1,042,852
6.25%,
08/09/26
..................
1,468
1,864,356
3.63%,
01/20/27
..................
1,367
1,549,166
(LIBOR
USD
3
Month
+
1.34%),
3.59%,
07/22/28
(a)
....................
2,787
3,134,513
(LIBOR
USD
3
Month
+
1.14%),
3.77%,
01/24/29
(a)
....................
2,408
2,748,519
(LIBOR
USD
3
Month
+
1.63%),
4.43%,
01/23/30
(a)
....................
7,477
8,933,684
(SOFR
+
3.12%),
3.62%,
04/01/31
(a)
....
3,611
4,148,966
Nomura
Holdings,
Inc.,
2.68%,
07/16/30
....
1,206
1,244,937
Northern
Trust
Corp.:
3.15%,
05/03/29
..................
628
716,190
1.95%,
05/01/30
..................
626
651,680
State
Street
Corp.,
2.65%,
05/19/26
......
758
830,034
UBS
Group
AG
(b)
:
(LIBOR
USD
3
Month
+
0.95%),
2.86%,
08/15/23
(a)
....................
2,212
2,294,061
(USD
Swap
Semi
5
Year
+
4.34%),
7.00%
(a)
(e)
..........................
2,615
2,791,512
4.13%,
09/24/25
..................
4,450
5,068,917
4.13%,
04/15/26
..................
2,416
2,789,369
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.08%),
1.36%,
01/30/27
(a)
...............
2,602
2,600,630
USAA
Capital
Corp.,
2.13%,
05/01/30
(b)
....
154
162,254
95,905,696
Chemicals
—
0.4%
Dow
Chemical
Co.
(The):
9.00%,
04/01/21
..................
915
951,843
4.55%,
11/30/25
..................
45
52,347
DuPont
de
Nemours,
Inc.,
4.49%,
11/15/25
..
5,022
5,788,659
Eastman
Chemical
Co.,
4.50%,
12/01/28
...
1,500
1,763,923
Ecolab,
Inc.,
4.80%,
03/24/30
..........
1,366
1,742,391
Equate
Petrochemical
BV,
4.25%,
11/03/26
..
202
211,682
LYB
International
Finance
BV,
4.88%,
03/15/44
763
912,013
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
25
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Chemicals
(continued)
MEGlobal
Canada
ULC
(b)
:
5.00%,
05/18/25
..................
USD
700
$
753,594
5.88%,
05/18/30
..................
410
477,137
SABIC
Capital
II
BV,
4.00%,
10/10/23
(b)
....
523
562,225
Sherwin-Williams
Co.
(The):
2.30%,
05/15/30
..................
1,283
1,339,820
4.00%,
12/15/42
..................
538
595,695
15,151,329
Commercial
Services
&
Supplies
—
0.3%
Ford
Foundation
(The),
Series
2020,
2.42%,
06/01/50
......................
60
61,639
RELX
Capital,
Inc.:
3.50%,
03/16/23
..................
3,006
3,197,001
4.00%,
03/18/29
..................
1,057
1,240,466
3.00%,
05/22/30
..................
3,694
4,039,143
Republic
Services,
Inc.:
2.90%,
07/01/26
..................
824
911,168
3.38%,
11/15/27
..................
312
354,690
3.95%,
05/15/28
..................
1,871
2,204,211
2.30%,
03/01/30
..................
1,586
1,686,188
13,694,506
Communications
Equipment
—
0.1%
Motorola
Solutions,
Inc.:
4.60%,
05/23/29
..................
3,497
4,129,865
2.30%,
11/15/30
..................
96
95,301
5.50%,
09/01/44
..................
1,509
1,753,915
5,979,081
Construction
Materials
—
0.0%
Inversiones
CMPC
SA,
4.38%,
05/15/23
(b)
...
200
212,063
Consumer
Finance
—
0.7%
American
Express
Co.,
3.70%,
08/03/23
....
586
636,142
Capital
One
Financial
Corp.,
3.90%,
01/29/24
2,752
2,995,499
Discover
Financial
Services,
4.10%,
02/09/27
987
1,094,552
Ford
Motor
Credit
Co.
LLC:
3.20%,
01/15/21
..................
694
692,534
3.34%,
03/18/21
..................
656
656,164
General
Motors
Financial
Co.,
Inc.:
5.20%,
03/20/23
..................
3,732
4,048,634
4.15%,
06/19/23
..................
1,382
1,467,020
1.70%,
08/18/23
..................
593
594,482
5.10%,
01/17/24
..................
2,537
2,770,410
4.00%,
01/15/25
..................
3,127
3,341,168
2.90%,
02/26/25
..................
2,361
2,433,176
4.35%,
04/09/25
..................
1,215
1,318,061
2.75%,
06/20/25
..................
1,828
1,870,260
0.85%,
02/26/26
..................
EUR
3,600
3,992,018
Hyundai
Capital
Services,
Inc.,
3.00%,
08/29/22
(b)
.....................
USD
1,650
1,706,203
Synchrony
Financial,
4.38%,
03/19/24
.....
619
669,787
Toyota
Motor
Credit
Corp.,
3.38%,
04/01/30
..
1,227
1,414,393
31,700,503
Containers
&
Packaging
—
0.0%
International
Paper
Co.:
6.00%,
11/15/41
..................
603
828,886
4.40%,
08/15/47
..................
283
345,704
1,174,590
Diversified
Consumer
Services
—
0.3%
American
University
(The),
Series
2019,
3.67%,
04/01/49
......................
953
1,089,834
Claremont
Mckenna
College,
Series
2019,
3.38%,
01/01/50
.................
709
802,213
George
Washington
University
(The),
Series
2018,
4.13%,
09/15/48
.............
552
678,330
Security
Par
(000)
Par
(000)
Value
Diversified
Consumer
Services
(continued)
Massachusetts
Institute
of
Technology,
3.96%,
07/01/38
......................
USD
1,866
$
2,319,040
University
of
Southern
California,
3.03%,
10/01/39
......................
6,056
6,553,375
11,442,792
Diversified
Financial
Services
—
0.3%
GE
Capital
International
Funding
Co.
Unlimited
Co.,
4.42%,
11/15/35
..............
2,475
2,612,508
MDGH
-
GMTN
BV
(b)
:
2.50%,
11/07/24
..................
557
580,672
2.88%,
11/07/29
..................
372
398,040
ORIX
Corp.,
2.90%,
07/18/22
..........
941
974,067
Petronas
Capital
Ltd.,
3.50%,
04/21/30
(b)
....
584
652,976
Shell
International
Finance
BV:
3.88%,
11/13/28
..................
4,092
4,778,370
2.38%,
11/07/29
..................
3,226
3,404,979
3.63%,
08/21/42
..................
189
206,581
4.38%,
05/11/45
..................
442
542,061
14,150,254
Diversified
Telecommunication
Services
—
1.4%
AT&T,
Inc.:
0.00%,
11/27/22
(b)(g)
................
8,000
7,889,078
3.80%,
02/15/27
..................
4
4,513
4.35%,
03/01/29
..................
1,984
2,335,381
2.75%,
06/01/31
..................
868
915,790
2.25%,
02/01/32
..................
3,017
3,017,600
4.50%,
05/15/35
..................
4,085
4,822,937
3.15%,
09/04/36
..................
EUR
385
533,919
2.60%,
05/19/38
..................
2,550
3,335,189
4.80%,
06/15/44
..................
USD
140
166,855
4.35%,
06/15/45
..................
125
140,052
3.30%,
02/01/52
..................
275
260,650
3.50%,
09/15/53
(b)
.................
1,522
1,471,506
3.55%,
09/15/55
(b)
.................
5,124
4,966,041
Deutsche
Telekom
International
Finance
BV,
3.60%,
01/19/27
(b)
................
1,021
1,144,059
Verizon
Communications,
Inc.:
4.13%,
03/16/27
..................
6,915
8,175,619
4.33%,
09/21/28
..................
6,943
8,418,381
1.50%,
09/18/30
..................
1,292
1,287,673
4.50%,
08/10/33
..................
1,916
2,430,130
4.40%,
11/01/34
..................
556
693,151
4.27%,
01/15/36
..................
3,727
4,597,230
5.25%,
03/16/37
..................
705
976,326
2.88%,
01/15/38
..................
EUR
1,000
1,449,259
4.81%,
03/15/39
..................
USD
835
1,093,447
1.85%,
05/18/40
..................
EUR
980
1,231,219
5.01%,
04/15/49
..................
USD
182
261,964
61,617,969
Electric
Utilities
—
2.9%
Adani
Electricity
Mumbai
Ltd.,
3.95%,
02/12/30
(b)
.....................
337
328,786
AEP
Texas,
Inc.:
3.95%,
06/01/28
..................
2,914
3,367,884
Series
G,
4.15%,
05/01/49
...........
232
278,608
Series
H,
3.45%,
01/15/50
...........
551
602,762
AEP
Transmission
Co.
LLC:
4.25%,
09/15/48
..................
490
622,680
3.80%,
06/15/49
..................
1,080
1,276,557
3.15%,
09/15/49
..................
800
857,370
Series
M,
3.65%,
04/01/50
...........
1,678
1,956,782
Alabama
Power
Co.:
Series
13-A,
3.55%,
12/01/23
.........
190
207,807
6.00%,
03/01/39
..................
80
116,577
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
26
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
3.75%,
03/01/45
..................
USD
1,430
$
1,652,992
Series
A,
4.30%,
07/15/48
...........
1,271
1,628,816
Baltimore
Gas
&
Electric
Co.:
3.50%,
08/15/46
..................
1,218
1,381,479
3.75%,
08/15/47
..................
557
653,806
3.20%,
09/15/49
..................
578
622,451
CenterPoint
Energy
Houston
Electric
LLC,
3.95%,
03/01/48
.................
448
555,040
Commonwealth
Edison
Co.,
Series
122,
2.95%,
08/15/27
......................
400
445,024
Consorcio
Transmantaro
SA,
4.70%,
04/16/34
(b)
245
288,878
Dayton
Power
&
Light
Co.
(The),
3.95%,
06/15/49
......................
1,358
1,473,364
DTE
Electric
Co.:
4.30%,
07/01/44
..................
321
400,449
Series
A,
4.05%,
05/15/48
...........
1,505
1,896,407
3.95%,
03/01/49
..................
95
119,870
2.95%,
03/01/50
..................
631
665,673
Duke
Energy
Carolinas
LLC:
3.95%,
11/15/28
..................
326
390,898
2.45%,
02/01/30
..................
7,330
7,927,124
3.75%,
06/01/45
..................
110
130,025
3.88%,
03/15/46
..................
942
1,140,609
3.70%,
12/01/47
..................
125
148,057
3.95%,
03/15/48
..................
4
4,951
3.20%,
08/15/49
..................
776
861,865
Duke
Energy
Florida
LLC:
3.80%,
07/15/28
..................
861
1,008,385
2.50%,
12/01/29
..................
5,901
6,400,918
1.75%,
06/15/30
..................
381
386,927
3.40%,
10/01/46
..................
570
640,246
Duke
Energy
Ohio,
Inc.,
3.65%,
02/01/29
...
3,036
3,525,045
Duke
Energy
Progress
LLC:
3.70%,
09/01/28
..................
2,285
2,653,557
3.45%,
03/15/29
..................
2,901
3,348,944
4.10%,
03/15/43
..................
788
962,673
4.20%,
08/15/45
..................
596
742,376
2.50%,
08/15/50
..................
546
529,365
Edison
International:
2.40%,
09/15/22
..................
38
38,737
3.13%,
11/15/22
..................
8
8,255
3.55%,
11/15/24
..................
564
594,632
Entergy
Louisiana
LLC:
5.40%,
11/01/24
..................
340
400,595
4.20%,
09/01/48
..................
2,035
2,578,877
Exelon
Corp.,
5.10%,
06/15/45
..........
36
46,699
FirstEnergy
Corp.:
Series
B,
3.90%,
07/15/27
...........
990
1,088,465
2.65%,
03/01/30
..................
2,240
2,271,475
Series
B,
2.25%,
09/01/30
...........
1,855
1,814,253
Series
C,
3.40%,
03/01/50
...........
1,036
1,005,000
FirstEnergy
Transmission
LLC
(b)
:
4.35%,
01/15/25
..................
5,908
6,585,231
5.45%,
07/15/44
..................
267
344,997
4.55%,
04/01/49
..................
2,564
3,014,153
Florida
Power
&
Light
Co.:
3.25%,
06/01/24
..................
80
86,747
3.95%,
03/01/48
..................
2,081
2,632,413
4.13%,
06/01/48
..................
403
527,016
3.15%,
10/01/49
..................
2,490
2,826,672
ITC
Holdings
Corp.,
2.70%,
11/15/22
......
1,194
1,245,355
MidAmerican
Energy
Co.:
3.10%,
05/01/27
..................
90
100,337
3.65%,
04/15/29
..................
4,502
5,363,903
3.65%,
08/01/48
..................
180
212,470
Security
Par
(000)
Par
(000)
Value
Electric
Utilities
(continued)
4.25%,
07/15/49
..................
USD
910
$
1,179,484
3.15%,
04/15/50
..................
920
1,019,504
Northern
States
Power
Co.:
3.40%,
08/15/42
..................
1,482
1,692,267
4.00%,
08/15/45
..................
669
838,376
2.90%,
03/01/50
..................
755
808,487
NSTAR
Electric
Co.:
3.20%,
05/15/27
..................
282
315,636
3.25%,
05/15/29
..................
140
159,816
3.95%,
04/01/30
..................
751
908,436
Ohio
Power
Co.:
Series
G,
6.60%,
02/15/33
...........
1,165
1,643,124
4.00%,
06/01/49
..................
945
1,157,312
Oncor
Electric
Delivery
Co.
LLC:
3.70%,
11/15/28
..................
1,672
1,966,361
5.75%,
03/15/29
..................
100
131,489
2.75%,
05/15/30
..................
308
343,795
5.30%,
06/01/42
..................
127
179,773
3.80%,
09/30/47
..................
565
686,210
3.80%,
06/01/49
..................
260
316,383
3.10%,
09/15/49
..................
1,248
1,371,598
5.35%,
10/01/52
(b)
.................
218
330,248
Public
Service
Electric
&
Gas
Co.:
3.00%,
05/15/25
..................
3
3,278
3.65%,
09/01/28
..................
1,440
1,686,046
3.20%,
05/15/29
..................
110
125,625
5.50%,
03/01/40
..................
120
170,695
3.60%,
12/01/47
..................
9
10,648
Public
Service
Electric
and
Gas
Co.,
2.05%,
08/01/50
......................
400
368,215
Southern
California
Edison
Co.:
Series
A,
2.90%,
03/01/21
...........
490
495,199
1.85%,
02/01/22
..................
464
464,479
Series
E,
3.70%,
08/01/25
...........
1,688
1,871,095
Series
20C,
1.20%,
02/01/26
.........
290
288,451
Series
A,
4.20%,
03/01/29
...........
840
961,464
2.25%,
06/01/30
..................
3,211
3,221,875
Series
C,
3.60%,
02/01/45
...........
29
29,775
Tampa
Electric
Co.:
4.30%,
06/15/48
..................
267
336,231
4.45%,
06/15/49
..................
892
1,152,192
Trans-Allegheny
Interstate
Line
Co.,
3.85%,
06/01/25
(b)
.....................
3,808
4,219,968
Virginia
Electric
&
Power
Co.:
Series
C,
2.75%,
03/15/23
...........
104
108,957
Series
A,
3.50%,
03/15/27
...........
1,101
1,255,154
4.00%,
01/15/43
..................
1,211
1,482,350
4.45%,
02/15/44
..................
415
541,122
Series
B,
4.20%,
05/15/45
...........
679
861,104
Series
C,
4.00%,
11/15/46
...........
234
289,514
Series
B,
3.80%,
09/15/47
...........
208
252,395
Virginia
Electric
and
Power
Co.,
Series
A,
6.00%,
05/15/37
.................
735
1,061,123
Vistra
Operations
Co.
LLC,
4.30%,
07/15/29
(b)
3,627
3,958,951
125,252,514
Electronic
Equipment,
Instruments
&
Components
—
0.0%
Corning,
Inc.:
3.70%,
11/15/23
..................
180
194,829
4.38%,
11/15/57
..................
503
609,041
Tyco
Electronics
Group
SA:
3.45%,
08/01/24
..................
215
233,778
3.13%,
08/15/27
..................
464
507,375
1,545,023
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
27
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Entertainment
—
0.2%
Activision
Blizzard,
Inc.:
1.35%,
09/15/30
..................
USD
1,330
$
1,300,133
2.50%,
09/15/50
..................
1,350
1,257,993
NBCUniversal
Media
LLC,
5.95%,
04/01/41
..
861
1,285,906
Walt
Disney
Co.
(The):
1.75%,
08/30/24
..................
1,975
2,056,097
5.40%,
10/01/43
..................
138
192,561
4.70%,
03/23/50
..................
725
959,662
3.60%,
01/13/51
..................
1,768
1,992,372
9,044,724
Equity
Real
Estate
Investment
Trusts
(REITs)
—
1.2%
American
Tower
Corp.:
5.00%,
02/15/24
..................
416
470,399
3.38%,
05/15/24
..................
1,590
1,721,502
2.40%,
03/15/25
..................
697
736,607
2.75%,
01/15/27
..................
413
445,518
3.95%,
03/15/29
..................
1,668
1,920,352
3.80%,
08/15/29
..................
2,440
2,793,242
2.90%,
01/15/30
..................
335
362,141
1.88%,
10/15/30
..................
312
308,276
Boston
Properties
LP,
3.13%,
09/01/23
.....
5,382
5,692,867
CC
Holdings
GS
V
LLC,
3.85%,
04/15/23
...
463
498,634
Crown
Castle
International
Corp.:
3.15%,
07/15/23
..................
820
872,011
1.35%,
07/15/25
..................
3,255
3,290,319
4.45%,
02/15/26
..................
331
379,346
3.70%,
06/15/26
..................
1,283
1,430,892
3.80%,
02/15/28
..................
721
817,980
3.10%,
11/15/29
..................
4,903
5,313,018
3.30%,
07/01/30
..................
90
98,422
2.25%,
01/15/31
..................
1,044
1,055,213
Digital
Dutch
Finco
BV:
1.50%,
03/15/30
..................
EUR
1,950
2,386,874
1.00%,
01/15/32
..................
1,070
1,238,910
Equinix,
Inc.:
2.63%,
11/18/24
..................
USD
882
937,791
1.25%,
07/15/25
..................
1,065
1,072,297
1.00%,
09/15/25
..................
3,463
3,438,222
1.55%,
03/15/28
..................
824
825,382
GLP
Capital
LP:
5.25%,
06/01/25
..................
2,013
2,185,756
4.00%,
01/15/31
..................
1,149
1,196,143
National
Retail
Properties,
Inc.,
2.50%,
04/15/30
......................
931
923,304
Prologis
Euro
Finance
LLC,
1.50%,
09/10/49
.
EUR
1,560
1,855,140
Realty
Income
Corp.:
4.65%,
08/01/23
..................
USD
5
5,525
3.25%,
01/15/31
..................
2,887
3,194,889
Service
Properties
Trust,
4.35%,
10/01/24
...
990
895,950
Trust
Fibra
Uno,
6.95%,
01/30/44
(b)
.......
674
717,389
49,080,311
Food
&
Staples
Retailing
—
0.1%
Alimentation
Couche-Tard,
Inc.,
3.55%,
07/26/27
(b)
.....................
2,352
2,632,487
Food
Products
—
0.0%
Campbell
Soup
Co.,
8.88%,
05/01/21
.....
560
587,510
Mondelez
International,
Inc.,
2.75%,
04/13/30
1,155
1,255,977
1,843,487
Gas
Utilities
—
0.1%
Atmos
Energy
Corp.:
4.13%,
03/15/49
..................
684
871,630
3.38%,
09/15/49
..................
212
240,388
Security
Par
(000)
Par
(000)
Value
Gas
Utilities
(continued)
CenterPoint
Energy
Resources
Corp.,
1.75%,
10/01/30
......................
USD
2,575
$
2,584,856
Dominion
Energy
Gas
Holdings
LLC:
4.80%,
11/01/43
..................
358
446,647
4.60%,
12/15/44
..................
198
246,145
Piedmont
Natural
Gas
Co.,
Inc.:
3.64%,
11/01/46
..................
92
104,510
3.35%,
06/01/50
..................
1,282
1,402,905
Promigas
SA
ESP,
3.75%,
10/16/29
.......
336
329,280
6,226,361
Health
Care
Equipment
&
Supplies
—
0.2%
Becton
Dickinson
and
Co.,
3.30%,
03/01/23
..
1,065
1,118,916
Boston
Scientific
Corp.,
4.00%,
03/01/29
...
1,169
1,359,945
DH
Europe
Finance
II
SARL:
1.35%,
09/18/39
..................
EUR
1,105
1,280,231
1.80%,
09/18/49
..................
800
943,261
Medtronic
Global
Holdings
SCA:
1.50%,
07/02/39
..................
785
962,269
1.38%,
10/15/40
..................
130
155,510
1.75%,
07/02/49
..................
800
983,677
6,803,809
Health
Care
Providers
&
Services
—
1.4%
Aetna,
Inc.:
4.50%,
05/15/42
..................
USD
745
887,009
4.75%,
03/15/44
..................
259
319,844
AHS
Hospital
Corp.,
5.02%,
07/01/45
.....
1,755
2,362,704
Anthem,
Inc.:
3.65%,
12/01/27
..................
628
715,572
4.10%,
03/01/28
..................
790
918,696
Centene
Corp.:
4.75%,
05/15/22
..................
3,290
3,331,125
3.00%,
10/15/30
..................
3,317
3,384,004
CHRISTUS
Health,
Series
C,
4.34%,
07/01/28
965
1,123,062
Cigna
Corp.:
3.50%,
06/15/24
..................
325
354,521
3.40%,
03/01/27
..................
967
1,084,364
4.38%,
10/15/28
..................
3,923
4,666,635
4.80%,
07/15/46
..................
18
22,555
Cottage
Health
Obligated
Group,
Series
2020,
3.30%,
11/01/49
.................
61
67,717
CVS
Health
Corp.:
4.10%,
03/25/25
..................
612
691,334
3.25%,
08/15/29
..................
2,792
3,071,223
3.75%,
04/01/30
..................
5,227
5,964,706
5.13%,
07/20/45
..................
2,308
2,916,133
Express
Scripts
Holding
Co.,
2.60%,
11/30/20
275
275,965
HCA,
Inc.:
4.75%,
05/01/23
..................
5,473
5,970,436
5.00%,
03/15/24
..................
5,312
5,951,133
5.25%,
04/15/25
..................
1,842
2,126,864
5.25%,
06/15/26
..................
1,266
1,477,027
Humana,
Inc.:
4.50%,
04/01/25
..................
760
872,913
3.13%,
08/15/29
..................
524
579,760
4.88%,
04/01/30
..................
368
459,937
McLaren
Health
Care
Corp.,
Series
A,
4.39%,
05/15/48
......................
472
586,937
PeaceHealth
Obligated
Group,
Series
2018,
4.79%,
11/15/48
.................
107
139,046
Sutter
Health,
Series
2018,
3.70%,
08/15/28
.
110
123,717
UnitedHealth
Group,
Inc.:
3.38%,
04/15/27
..................
710
810,510
2.95%,
10/15/27
..................
2,331
2,601,385
5.80%,
03/15/36
..................
375
543,097
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
28
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Health
Care
Providers
&
Services
(continued)
6.88%,
02/15/38
..................
USD
534
$
860,121
3.50%,
08/15/39
..................
764
877,698
2.75%,
05/15/40
..................
2,075
2,192,526
4.63%,
11/15/41
..................
102
133,832
4.75%,
07/15/45
..................
307
419,054
4.20%,
01/15/47
..................
1,419
1,797,241
60,680,403
Hotels,
Restaurants
&
Leisure
—
0.2%
McDonald's
Corp.:
2.13%,
03/01/30
..................
870
905,272
4.45%,
09/01/48
..................
667
830,563
3.63%,
09/01/49
..................
1,957
2,197,424
Starbucks
Corp.:
2.25%,
03/12/30
..................
883
917,034
2.55%,
11/15/30
..................
1,440
1,528,926
6,379,219
Household
Durables
—
0.1%
Lennar
Corp.,
4.13%,
01/15/22
.........
3,020
3,091,725
PulteGroup,
Inc.,
5.50%,
03/01/26
........
1,880
2,143,200
5,234,925
Household
Products
—
0.0%
Clorox
Co.
(The),
3.10%,
10/01/27
.......
905
1,019,505
Kimberly-Clark
de
Mexico
SAB
de
CV,
2.43%,
07/01/31
(b)
.....................
407
416,157
1,435,662
Independent
Power
and
Renewable
Electricity
Producers
—
0.0%
Colbun
SA,
3.15%,
03/06/30
(b)
..........
200
215,375
Industrial
Conglomerates
—
0.2%
3M
Co.:
3.38%,
03/01/29
..................
629
723,352
2.38%,
08/26/29
..................
485
524,554
General
Electric
Co.:
6.15%,
08/07/37
..................
2,492
2,987,601
5.88%,
01/14/38
..................
796
930,807
6.88%,
01/10/39
..................
357
458,600
Honeywell
International,
Inc.,
0.75%,
03/10/32
EUR
1,730
2,040,295
Roper
Technologies,
Inc.:
2.95%,
09/15/29
..................
USD
634
697,862
1.75%,
02/15/31
..................
478
478,258
8,841,329
Insurance
—
0.4%
Aon
Corp.:
3.75%,
05/02/29
..................
5,740
6,620,944
2.80%,
05/15/30
..................
40
43,339
Aon
plc,
4.75%,
05/15/45
.............
285
371,254
Hartford
Financial
Services
Group,
Inc.
(The):
5.95%,
10/15/36
..................
721
989,698
4.30%,
04/15/43
..................
360
422,828
Marsh
&
McLennan
Cos.,
Inc.:
1.35%,
09/21/26
..................
EUR
1,005
1,241,642
1.98%,
03/21/30
..................
694
919,571
2.25%,
11/15/30
..................
USD
1,932
2,021,687
MetLife,
Inc.,
4.72%,
12/15/44
(f)
.........
400
528,286
Principal
Financial
Group,
Inc.,
2.13%,
06/15/30
1,167
1,202,135
Trinity
Acquisition
plc,
4.40%,
03/15/26
.....
175
202,084
Willis
North
America,
Inc.,
3.60%,
05/15/24
..
486
530,796
15,094,264
Interactive
Media
&
Services
—
0.0%
Baidu,
Inc.,
4.38%,
05/14/24
...........
755
828,820
Internet
&
Direct
Marketing
Retail
—
0.4%
Alibaba
Group
Holding
Ltd.,
3.60%,
11/28/24
.
1,170
1,282,016
Amazon.com,
Inc.,
3.88%,
08/22/37
......
3,057
3,806,049
Security
Par
(000)
Par
(000)
Value
Internet
&
Direct
Marketing
Retail
(continued)
Booking
Holdings,
Inc.:
4.10%,
04/13/25
..................
USD
3,724
$
4,190,322
1.80%,
03/03/27
..................
EUR
1,320
1,630,306
Expedia
Group,
Inc.:
5.00%,
02/15/26
..................
USD
214
228,232
3.80%,
02/15/28
..................
1,682
1,698,554
3.25%,
02/15/30
..................
2,149
2,070,584
14,906,063
IT
Services
—
1.2%
DXC
Technology
Co.,
4.00%,
04/15/23
.....
852
897,192
Fidelity
National
Information
Services,
Inc.:
1.00%,
12/03/28
..................
EUR
2,550
3,061,501
2.95%,
05/21/39
..................
780
1,105,708
Fiserv,
Inc.:
3.20%,
07/01/26
..................
USD
612
679,959
3.50%,
07/01/29
..................
4,609
5,253,870
2.65%,
06/01/30
..................
1,825
1,963,856
1.63%,
07/01/30
..................
EUR
1,850
2,312,880
Global
Payments,
Inc.:
3.80%,
04/01/21
..................
USD
830
841,061
4.80%,
04/01/26
..................
1,143
1,334,453
4.45%,
06/01/28
..................
533
626,166
3.20%,
08/15/29
..................
1,647
1,796,454
2.90%,
05/15/30
..................
923
987,619
International
Business
Machines
Corp.:
3.45%,
02/19/26
..................
862
978,996
3.30%,
05/15/26
..................
4,346
4,894,089
1.70%,
05/15/27
..................
775
801,218
3.50%,
05/15/29
..................
767
884,009
1.95%,
05/15/30
..................
7,111
7,336,241
2.85%,
05/15/40
..................
2,134
2,263,987
Mastercard,
Inc.:
2.95%,
06/01/29
..................
2,948
3,329,459
3.35%,
03/26/30
..................
2,720
3,189,360
PayPal
Holdings,
Inc.:
2.40%,
10/01/24
..................
917
971,605
1.65%,
06/01/25
..................
364
377,001
2.65%,
10/01/26
..................
515
561,959
Visa,
Inc.:
1.90%,
04/15/27
..................
1,134
1,204,401
4.15%,
12/14/35
..................
1,307
1,692,482
2.70%,
04/15/40
..................
556
601,417
49,946,943
Leisure
Products
—
0.2%
Hasbro,
Inc.:
2.60%,
11/19/22
..................
3,267
3,384,555
3.90%,
11/19/29
..................
4,433
4,665,551
8,050,106
Life
Sciences
Tools
&
Services
—
0.2%
Agilent
Technologies,
Inc.:
3.05%,
09/22/26
..................
2,061
2,265,328
2.75%,
09/15/29
..................
873
946,341
Thermo
Fisher
Scientific,
Inc.:
3.65%,
12/15/25
..................
732
824,927
4.50%,
03/25/30
..................
995
1,230,933
1.88%,
10/01/49
..................
EUR
1,600
1,887,457
7,154,986
Machinery
—
0.1%
John
Deere
Cash
Management
SA:
1.85%,
04/02/28
..................
175
228,980
2.20%,
04/02/32
..................
555
768,298
Otis
Worldwide
Corp.:
2.29%,
04/05/27
..................
USD
250
265,915
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
29
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Machinery
(continued)
2.57%,
02/15/30
..................
USD
489
$
525,543
Parker-Hannifin
Corp.:
2.70%,
06/14/24
..................
422
451,812
3.25%,
06/14/29
..................
1,154
1,292,419
3,532,967
Media
—
1.3%
Charter
Communications
Operating
LLC:
6.38%,
10/23/35
..................
2,309
3,166,559
6.48%,
10/23/45
..................
4,197
5,629,239
5.38%,
05/01/47
..................
1,699
2,017,327
4.80%,
03/01/50
..................
487
553,784
Comcast
Corp.:
4.15%,
10/15/28
..................
1,627
1,960,566
2.65%,
02/01/30
..................
5,123
5,582,098
3.40%,
04/01/30
..................
4,609
5,318,154
4.25%,
10/15/30
..................
837
1,027,869
1.95%,
01/15/31
..................
7,081
7,278,134
4.40%,
08/15/35
..................
87
110,399
4.60%,
10/15/38
..................
1,509
1,928,724
3.25%,
11/01/39
..................
602
670,407
4.60%,
08/15/45
..................
1,290
1,664,098
3.40%,
07/15/46
..................
639
711,009
4.70%,
10/15/48
..................
33
44,009
4.00%,
11/01/49
..................
728
883,369
2.65%,
08/15/62
..................
230
219,868
Cox
Communications,
Inc.
(b)
:
3.25%,
12/15/22
..................
675
711,507
3.15%,
08/15/24
..................
5,438
5,851,259
Discovery
Communications
LLC:
1.90%,
03/19/27
..................
EUR
860
1,052,691
5.20%,
09/20/47
..................
USD
548
663,823
4.00%,
09/15/55
(b)
.................
2,101
2,133,156
TCI
Communications,
Inc.,
7.88%,
02/15/26
..
291
393,117
Time
Warner
Cable
LLC,
5.50%,
09/01/41
...
1,275
1,544,519
ViacomCBS,
Inc.:
6.88%,
04/30/36
..................
1,245
1,713,132
4.38%,
03/15/43
..................
598
635,687
53,464,504
Metals
&
Mining
—
0.3%
Anglo
American
Capital
plc
(b)
:
5.63%,
04/01/30
..................
342
419,778
2.63%,
09/10/30
..................
1,654
1,649,501
AngloGold
Ashanti
Holdings
plc,
3.75%,
10/01/30
......................
234
238,973
Fresnillo
plc,
4.25%,
10/02/50
(b)
.........
773
763,780
Industrias
Penoles
SAB
de
CV
(b)
:
4.15%,
09/12/29
..................
705
765,806
4.75%,
08/06/50
..................
229
235,694
Minera
Mexico
SA
de
CV,
4.50%,
01/26/50
(b)
.
418
453,530
Newmont
Corp.,
2.25%,
10/01/30
........
4,526
4,670,941
Nucor
Corp.,
3.95%,
05/01/28
..........
512
596,745
Steel
Dynamics,
Inc.,
2.80%,
12/15/24
.....
845
891,414
Teck
Resources
Ltd.:
6.13%,
10/01/35
..................
301
359,809
6.00%,
08/15/40
..................
2
2,265
Vale
Overseas
Ltd.,
3.75%,
07/08/30
......
535
549,579
Votorantim
SA,
6.75%,
04/05/21
(b)
........
296
303,400
11,901,215
Multiline
Retail
—
0.0%
Dollar
General
Corp.,
4.13%,
04/03/50
.....
200
237,191
Multi-Utilities
—
0.2%
Ameren
Illinois
Co.:
3.80%,
05/15/28
..................
430
502,655
Security
Par
(000)
Par
(000)
Value
Multi-Utilities
(continued)
3.70%,
12/01/47
..................
USD
11
$
12,943
3.25%,
03/15/50
..................
1,389
1,562,667
Consumers
Energy
Co.:
3.80%,
11/15/28
..................
81
96,538
4.05%,
05/15/48
..................
625
785,265
4.35%,
04/15/49
..................
517
682,039
3.75%,
02/15/50
..................
1,096
1,344,551
3.10%,
08/15/50
..................
864
943,004
3.50%,
08/01/51
..................
1,412
1,652,812
7,582,474
Oil,
Gas
&
Consumable
Fuels
—
2.8%
Boardwalk
Pipelines
LP,
4.80%,
05/03/29
...
9
9,807
BP
Capital
Markets
America,
Inc.:
3.79%,
02/06/24
..................
1,163
1,275,381
3.22%,
04/14/24
..................
597
643,608
3.41%,
02/11/26
..................
485
541,316
3.12%,
05/04/26
..................
433
478,033
3.54%,
04/06/27
..................
932
1,043,252
BP
Capital
Markets
plc:
2.75%,
05/10/23
..................
680
716,203
3.81%,
02/10/24
..................
432
474,885
Cameron
LNG
LLC
(b)
:
3.30%,
01/15/35
..................
3,606
4,068,488
3.40%,
01/15/38
..................
717
775,962
Cheniere
Corpus
Christi
Holdings
LLC:
7.00%,
06/30/24
..................
2,820
3,246,830
5.88%,
03/31/25
..................
1,681
1,916,063
5.13%,
06/30/27
..................
4,200
4,675,194
Chevron
USA,
Inc.,
2.34%,
08/12/50
......
1,150
1,089,089
Concho
Resources,
Inc.:
3.75%,
10/01/27
..................
910
982,969
4.30%,
08/15/28
..................
3,446
3,811,462
Diamondback
Energy,
Inc.,
3.50%,
12/01/29
.
4,825
4,677,474
Enbridge
Energy
Partners
LP,
7.38%,
10/15/45
125
183,018
Energen
Corp.,
4.63%,
09/01/21
.........
950
959,013
Energy
Transfer
Operating
LP:
5.20%,
02/01/22
..................
737
763,716
3.60%,
02/01/23
..................
1,257
1,293,510
4.25%,
03/15/23
..................
875
909,774
4.20%,
09/15/23
..................
977
1,031,176
4.90%,
02/01/24
..................
190
202,755
4.50%,
04/15/24
..................
378
400,392
4.05%,
03/15/25
..................
10
10,511
2.90%,
05/15/25
..................
5,575
5,605,123
4.75%,
01/15/26
..................
227
241,744
7.50%,
07/01/38
..................
539
638,827
6.50%,
02/01/42
..................
703
736,369
Energy
Transfer
Partners
LP:
5.88%,
03/01/22
..................
2,590
2,705,478
5.00%,
10/01/22
..................
2,600
2,736,319
4.50%,
11/01/23
..................
354
376,647
Enterprise
Products
Operating
LLC:
3.13%,
07/31/29
..................
63
68,669
Series
D,
6.88%,
03/01/33
...........
192
257,451
Series
H,
6.65%,
10/15/34
...........
35
46,543
4.45%,
02/15/43
..................
1,586
1,712,086
4.85%,
03/15/44
..................
605
688,109
4.25%,
02/15/48
..................
621
659,310
EOG
Resources,
Inc.:
4.15%,
01/15/26
..................
553
633,306
3.90%,
04/01/35
..................
75
84,033
Exxon
Mobil
Corp.,
1.41%,
06/26/39
......
EUR
2,120
2,449,856
Kinder
Morgan
Energy
Partners
LP:
6.50%,
02/01/37
..................
USD
558
694,293
6.95%,
01/15/38
..................
647
846,703
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
30
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
6.38%,
03/01/41
..................
USD
724
$
886,827
5.00%,
08/15/42
..................
60
66,630
Marathon
Petroleum
Corp.:
4.75%,
12/15/23
..................
800
876,809
5.85%,
12/15/45
..................
345
391,763
5.00%,
09/15/54
..................
1,469
1,511,238
MPLX
LP:
4.88%,
12/01/24
..................
3,506
3,916,857
2.65%,
08/15/30
..................
2,345
2,288,870
NGPL
PipeCo
LLC
(b)
:
4.38%,
08/15/22
..................
3,673
3,812,722
4.88%,
08/15/27
..................
3,479
3,775,210
7.77%,
12/15/37
..................
178
226,577
Northwest
Pipeline
LLC,
4.00%,
04/01/27
...
3,865
4,261,792
Oleoducto
Central
SA,
4.00%,
07/14/27
(b)
...
475
493,287
Pioneer
Natural
Resources
Co.,
1.90%,
08/15/30
......................
937
878,832
PTTEP
Treasury
Center
Co.
Ltd.,
2.59%,
06/10/27
(b)
.....................
200
206,810
Sabine
Pass
Liquefaction
LLC:
5.63%,
04/15/23
(f)
.................
1,205
1,319,921
5.75%,
05/15/24
..................
2,707
3,065,617
5.63%,
03/01/25
..................
7,866
8,997,448
4.20%,
03/15/28
..................
4,077
4,427,237
Santos
Finance
Ltd.,
5.25%,
03/13/29
.....
600
660,634
Sinopec
Group
Overseas
Development
2018
Ltd.,
2.15%,
05/13/25
(b)
.............
545
563,503
Suncor
Energy,
Inc.:
6.80%,
05/15/38
..................
371
485,316
6.50%,
06/15/38
..................
491
628,621
6.85%,
06/01/39
..................
426
558,366
Sunoco
Logistics
Partners
Operations
LP:
4.25%,
04/01/24
..................
1,310
1,375,547
5.95%,
12/01/25
..................
685
781,951
Texas
Eastern
Transmission
LP
(b)
:
3.50%,
01/15/28
..................
2,049
2,214,638
4.15%,
01/15/48
..................
910
971,818
Total
Capital
International
SA,
3.70%,
01/15/24
3,477
3,814,640
TransCanada
PipeLines
Ltd.:
4.63%,
03/01/34
..................
265
312,948
5.85%,
03/15/36
..................
213
278,603
Transcontinental
Gas
Pipe
Line
Co.
LLC:
7.85%,
02/01/26
..................
1,895
2,453,467
4.00%,
03/15/28
..................
3,422
3,821,014
4.60%,
03/15/48
..................
560
640,330
3.95%,
05/15/50
(b)
.................
1,197
1,256,474
Williams
Cos.,
Inc.
(The):
Series
A,
7.50%,
01/15/31
...........
495
652,045
7.75%,
06/15/31
..................
374
491,955
120,727,064
Paper
&
Forest
Products
—
0.2%
Georgia-Pacific
LLC:
3.73%,
07/15/23
(b)
.................
2,088
2,248,000
7.38%,
12/01/25
..................
1,203
1,554,692
2.10%,
04/30/27
(b)
.................
844
886,257
7.75%,
11/15/29
..................
300
448,509
2.30%,
04/30/30
(b)
.................
1,310
1,390,019
8.88%,
05/15/31
..................
165
266,748
Suzano
Austria
GmbH,
3.75%,
01/15/31
....
170
169,830
6,964,055
Pharmaceuticals
—
0.7%
AstraZeneca
plc,
1.38%,
08/06/30
........
2,804
2,727,438
Bayer
US
Finance
II
LLC
(b)
:
2.85%,
04/15/25
..................
1,500
1,539,844
Security
Par
(000)
Par
(000)
Value
Pharmaceuticals
(continued)
4.38%,
12/15/28
..................
USD
1,368
$
1,606,294
Bristol-Myers
Squibb
Co.:
6.80%,
11/15/26
..................
339
445,773
5.00%,
08/15/45
..................
497
698,914
4.55%,
02/20/48
..................
452
611,282
Eli
Lilly
&
Co.,
1.70%,
11/01/49
.........
EUR
800
1,018,739
GlaxoSmithKline
Capital
plc,
3.38%,
06/01/29
USD
560
647,622
GlaxoSmithKline
Capital,
Inc.,
3.88%,
05/15/28
1,247
1,482,140
Johnson
&
Johnson,
3.70%,
03/01/46
.....
501
627,110
Merck
&
Co.,
Inc.,
3.40%,
03/07/29
.......
2,177
2,536,364
Novartis
Capital
Corp.,
2.20%,
08/14/30
....
888
958,764
Pfizer,
Inc.:
3.45%,
03/15/29
..................
1,590
1,861,405
2.63%,
04/01/30
..................
1,147
1,282,432
1.70%,
05/28/30
..................
1,514
1,560,303
Pharmacia
LLC,
6.60%,
12/01/28
(f)
.......
808
1,120,724
Shire
Acquisitions
Investments
Ireland
DAC:
2.88%,
09/23/23
..................
562
595,692
3.20%,
09/23/26
..................
1,100
1,223,115
Takeda
Pharmaceutical
Co.
Ltd.:
4.40%,
11/26/23
..................
545
605,155
5.00%,
11/26/28
..................
1,184
1,471,583
2.05%,
03/31/30
..................
1,019
1,029,032
2.00%,
07/09/40
..................
EUR
2,215
2,750,635
Wyeth
LLC,
5.95%,
04/01/37
...........
USD
451
668,741
29,069,101
Real
Estate
Management
&
Development
—
0.0%
Celulosa
Arauco
y
Constitucion
SA,
4.25%,
04/30/29
(b)
.....................
200
213,000
MAF
Global
Securities
Ltd.,
4.75%,
05/07/24
.
232
246,790
459,790
Road
&
Rail
—
0.8%
Burlington
Northern
Santa
Fe
LLC:
5.75%,
05/01/40
..................
1,117
1,614,076
5.05%,
03/01/41
..................
275
370,925
4.40%,
03/15/42
..................
939
1,178,493
CSX
Corp.:
4.25%,
03/15/29
..................
2,679
3,222,024
6.00%,
10/01/36
..................
182
257,761
6.15%,
05/01/37
..................
11
15,980
4.30%,
03/01/48
..................
1,913
2,382,740
4.50%,
03/15/49
..................
600
782,310
4.25%,
11/01/66
..................
696
863,324
4.65%,
03/01/68
..................
87
114,025
Norfolk
Southern
Corp.:
3.65%,
08/01/25
..................
1,005
1,130,316
2.90%,
06/15/26
..................
1,355
1,495,692
4.45%,
06/15/45
..................
23
29,178
3.40%,
11/01/49
..................
842
932,699
4.05%,
08/15/52
..................
709
868,844
Penske
Truck
Leasing
Co.
LP
(b)
:
4.25%,
01/17/23
..................
1,550
1,668,095
2.70%,
03/14/23
..................
2,070
2,154,870
3.90%,
02/01/24
..................
561
611,086
2.70%,
11/01/24
..................
710
753,288
4.00%,
07/15/25
..................
1,555
1,751,752
Ryder
System,
Inc.:
2.50%,
09/01/22
..................
310
320,019
2.50%,
09/01/24
..................
1,270
1,334,756
4.63%,
06/01/25
..................
3,096
3,557,716
Union
Pacific
Corp.:
3.25%,
01/15/25
..................
1,820
2,002,260
3.25%,
08/15/25
..................
389
431,961
2.75%,
03/01/26
..................
1,097
1,203,004
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
31
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Road
&
Rail
(continued)
2.15%,
02/05/27
..................
USD
374
$
397,581
3.38%,
02/01/35
..................
495
572,627
3.84%,
03/20/60
..................
705
817,820
4.38%,
11/15/65
..................
283
351,113
4.10%,
09/15/67
..................
323
384,304
3.75%,
02/05/70
..................
554
625,460
34,196,099
Semiconductors
&
Semiconductor
Equipment
—
1.4%
Applied
Materials,
Inc.,
2.75%,
06/01/50
....
1,495
1,571,160
Broadcom
Corp.,
3.88%,
01/15/27
.......
6,271
6,947,673
Broadcom,
Inc.:
2.25%,
11/15/23
..................
1,891
1,965,972
4.70%,
04/15/25
..................
5,950
6,761,060
4.25%,
04/15/26
..................
3,030
3,413,662
4.11%,
09/15/28
..................
1,875
2,114,530
4.75%,
04/15/29
..................
577
672,237
4.15%,
11/15/30
..................
1,190
1,336,779
Intel
Corp.:
4.10%,
05/19/46
..................
579
722,666
3.73%,
12/08/47
..................
20
23,885
4.75%,
03/25/50
..................
1,299
1,788,879
KLA
Corp.:
4.10%,
03/15/29
..................
2,990
3,588,396
5.00%,
03/15/49
..................
239
319,174
3.30%,
03/01/50
..................
1,930
2,039,087
Lam
Research
Corp.:
3.75%,
03/15/26
..................
5,527
6,340,750
1.90%,
06/15/30
..................
556
576,907
4.88%,
03/15/49
..................
888
1,256,933
NVIDIA
Corp.:
3.20%,
09/16/26
..................
2,060
2,323,628
2.85%,
04/01/30
..................
3,073
3,452,535
3.50%,
04/01/50
..................
1,397
1,634,880
NXP
BV
(b)
:
4.63%,
06/01/23
..................
1,374
1,502,672
3.15%,
05/01/27
..................
2
2,162
5.55%,
12/01/28
..................
604
746,982
4.30%,
06/18/29
..................
1,878
2,164,828
3.40%,
05/01/30
..................
1,935
2,118,261
QUALCOMM,
Inc.:
4.80%,
05/20/45
..................
373
503,391
4.30%,
05/20/47
..................
1,928
2,476,524
Texas
Instruments,
Inc.,
1.75%,
05/04/30
...
563
580,722
58,946,335
Software
—
0.6%
Autodesk,
Inc.,
3.50%,
06/15/27
.........
4,684
5,313,804
Microsoft
Corp.:
3.45%,
08/08/36
..................
1,642
1,992,496
2.53%,
06/01/50
..................
2,810
2,938,751
Oracle
Corp.:
3.90%,
05/15/35
..................
2,544
3,094,751
3.80%,
11/15/37
..................
1,220
1,431,315
3.60%,
04/01/40
..................
1,742
1,995,413
5.38%,
07/15/40
..................
326
454,683
4.13%,
05/15/45
..................
360
429,420
4.00%,
07/15/46
..................
1,944
2,304,284
3.60%,
04/01/50
..................
3,753
4,230,266
24,185,183
Specialty
Retail
—
0.2%
Home
Depot,
Inc.
(The),
2.95%,
06/15/29
...
3,131
3,535,153
Lowe's
Cos.,
Inc.:
4.00%,
04/15/25
..................
3,995
4,533,427
Security
Par
(000)
Par
(000)
Value
Specialty
Retail
(continued)
4.55%,
04/05/49
..................
USD
486
$
623,620
8,692,200
Technology
Hardware,
Storage
&
Peripherals
—
0.5%
Apple,
Inc.:
3.85%,
05/04/43
..................
2,368
2,952,100
3.45%,
02/09/45
..................
467
545,203
3.75%,
11/13/47
..................
621
762,891
2.55%,
08/20/60
..................
1,600
1,589,445
Dell
International
LLC
(b)
:
6.02%,
06/15/26
..................
695
816,055
4.90%,
10/01/26
..................
1,758
1,987,283
8.10%,
07/15/36
..................
1,267
1,666,153
Hewlett
Packard
Enterprise
Co.:
4.40%,
10/15/22
(f)
.................
6,330
6,764,384
4.65%,
10/01/24
..................
2,266
2,562,393
HP,
Inc.,
6.00%,
09/15/41
.............
290
355,490
Seagate
HDD
Cayman,
4.09%,
06/01/29
(b)
..
729
792,980
20,794,377
Textiles,
Apparel
&
Luxury
Goods
—
0.1%
NIKE,
Inc.,
2.75%,
03/27/27
...........
3,883
4,318,713
Thrifts
&
Mortgage
Finance
—
0.1%
BPCE
SA
(b)
:
3.00%,
05/22/22
..................
606
626,926
2.70%,
10/01/29
..................
3,023
3,250,153
3,877,079
Tobacco
—
0.6%
Altria
Group,
Inc.:
4.00%,
01/31/24
..................
740
813,777
4.40%,
02/14/26
..................
3,910
4,516,687
4.80%,
02/14/29
..................
1,635
1,940,082
3.13%,
06/15/31
..................
EUR
1,950
2,610,472
5.80%,
02/14/39
..................
USD
2,382
3,048,274
BAT
Capital
Corp.:
3.22%,
08/15/24
..................
692
740,382
3.22%,
09/06/26
..................
1,075
1,155,733
4.54%,
08/15/47
..................
1,152
1,233,647
4.76%,
09/06/49
..................
473
513,703
5.28%,
04/02/50
..................
569
668,727
BAT
International
Finance
plc,
3.95%,
06/15/25
(b)
.....................
1,039
1,154,406
Philip
Morris
International,
Inc.,
1.45%,
08/01/39
......................
EUR
2,600
3,012,247
Reynolds
American,
Inc.:
4.45%,
06/12/25
..................
USD
3,559
4,005,079
5.85%,
08/15/45
..................
930
1,130,084
26,543,300
Trading
Companies
&
Distributors
—
0.0%
United
Rentals
North
America,
Inc.,
3.88%,
11/15/27
......................
1,880
1,936,400
Transportation
Infrastructure
—
0.0%
DP
World
Crescent
Ltd.,
3.91%,
05/31/23
...
441
464,687
Wireless
Telecommunication
Services
—
0.6%
America
Movil
SAB
de
CV,
2.88%,
05/07/30
..
1,316
1,423,741
Empresa
Nacional
de
Telecomunicaciones
SA,
4.75%,
08/01/26
(b)
................
305
335,692
Sprint
Spectrum
Co.
LLC,
3.36%,
09/20/21
(b)(f)
1,022
1,033,699
T-Mobile
USA,
Inc.
(b)
:
3.50%,
04/15/25
..................
4,151
4,554,893
3.75%,
04/15/27
..................
5,987
6,718,252
3.88%,
04/15/30
..................
4,913
5,574,388
2.55%,
02/15/31
..................
320
331,075
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
32
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Wireless
Telecommunication
Services
(continued)
Vodafone
Group
plc:
4.13%,
05/30/25
..................
USD
1,009
$
1,150,552
4.38%,
02/19/43
..................
1,004
1,167,272
5.25%,
05/30/48
..................
2,697
3,486,742
25,776,306
Total
Corporate
Bonds
—
36.6%
(Cost:
$1,484,227,861)
............................
1,555,060,759
Foreign
Agency
Obligations
—
0.2%
Chile
—
0.0%
(b)
Empresa
de
los
Ferrocarriles
del
Estado,
3.07%,
08/18/50
..................
240
234,000
Empresa
de
Transporte
de
Pasajeros
Metro
SA,
3.65%,
05/07/30
..................
255
281,456
515,456
Colombia
—
0.1%
Ecopetrol
SA:
5.38%,
06/26/26
..................
2,553
2,810,294
6.88%,
04/29/30
..................
503
601,588
Empresas
Publicas
de
Medellin
ESP,
4.38%,
02/15/31
(b)
......................
311
311,000
3,722,882
Mexico
—
0.1%
Petroleos
Mexicanos:
(LIBOR
USD
3
Month
+
3.65%),
3.90%,
03/11/22
(a)
....................
527
514,842
4.25%,
01/15/25
..................
766
709,819
4.50%,
01/23/26
..................
1,580
1,398,616
6.95%,
01/28/60
..................
2,348
1,816,178
4,439,455
Morocco
—
0.0%
OCP
SA,
4.50%,
10/22/25
..............
270
284,766
Panama
—
0.0%
Banco
Latinoamericano
de
Comercio
Exterior
SA,
2.38%,
09/14/25
(b)
..............
488
492,880
Total
Foreign
Agency
Obligations
—
0.2%
(Cost:
$8,876,678)
...............................
9,455,439
Foreign
Government
Obligations
—
5.3%
Chile
—
0.0%
Corp.
Nacional
del
Cobre
de
Chile,
3.75%,
01/15/31
(b)
......................
200
222,500
Republic
of
Chile,
2.45%,
01/31/31
........
450
473,625
696,125
China
—
3.2%
People's
Republic
of
China:
1.99%,
04/09/25
..................
CNY
491,480
69,348,023
2.41%,
06/19/25
..................
96,000
13,828,357
2.85%,
06/04/27
..................
68,300
9,854,718
3.29%,
05/23/29
..................
36,590
5,436,339
2.68%,
05/21/30
..................
256,870
36,398,013
134,865,450
Colombia
—
0.3%
Republic
of
Colombia:
6.25%,
11/26/25
..................
COP
2,831,100
808,080
3.88%,
04/25/27
..................
USD
4,080
4,406,400
4.50%,
03/15/29
..................
2,500
2,800,781
3.13%,
04/15/31
..................
1,829
1,868,324
Security
Par
(000)
Par
(000)
Value
Colombia
(continued)
7.25%,
10/18/34
..................
COP
7,906,400
$
2,249,450
5.20%,
05/15/49
..................
USD
1,580
1,908,838
14,041,873
Hungary
—
0.1%
Hungary
Government
Bond,
5.38%,
03/25/24
.
2,860
3,277,381
Indonesia
—
0.3%
Republic
of
Indonesia:
7.00%,
05/15/27
..................
IDR
20,463,000
1,399,955
4.10%,
04/24/28
..................
USD
3,006
3,415,567
2.85%,
02/14/30
..................
3,065
3,223,039
7.00%,
09/15/30
..................
IDR
9,058,000
608,737
6.63%,
05/15/33
..................
5,775,000
365,789
7.50%,
06/15/35
..................
16,322,000
1,103,079
8.38%,
04/15/39
..................
22,826,000
1,631,415
7.38%,
05/15/48
..................
15,488,000
1,021,669
12,769,250
Italy
—
0.3%
Republic
of
Italy,
1.80%,
03/01/41
(b)
........
EUR
10,100
12,403,494
Mexico
—
0.3%
United
Mexican
States:
4.15%,
03/28/27
..................
USD
6,531
7,259,206
3.25%,
04/16/30
..................
1,734
1,779,084
4.50%,
01/31/50
..................
3,100
3,262,750
12,301,040
Panama
—
0.2%
Republic
of
Panama:
3.88%,
03/17/28
..................
5,319
6,032,078
3.16%,
01/23/30
..................
1,282
1,392,573
7,424,651
Peru
—
0.1%
Republic
of
Peru:
4.13%,
08/25/27
..................
2,903
3,382,902
2.78%,
01/23/31
..................
696
753,072
4,135,974
Philippines
—
0.2%
Republic
of
Philippines:
3.00%,
02/01/28
..................
6,085
6,696,177
3.75%,
01/14/29
..................
888
1,036,463
7,732,640
Qatar
—
0.0%
State
of
Qatar,
3.75%,
04/16/30
..........
1,358
1,572,734
Romania
—
0.0%
Romania
Government
Bond,
3.00%,
02/14/31
(b)
863
885,654
Russia
—
0.2%
Russian
Federation:
8.15%,
02/03/27
..................
RUB
127,758
1,852,717
6.00%,
10/06/27
..................
72,675
940,412
4.38%,
03/21/29
..................
USD
1,200
1,378,800
6.90%,
05/23/29
..................
RUB
149,187
2,023,033
8.50%,
09/17/31
..................
130,034
1,966,868
8,161,830
Saudi
Arabia
—
0.0%
Kingdom
of
Saudi
Arabia,
3.25%,
10/22/30
...
USD
1,807
1,960,595
Uruguay
—
0.1%
Oriental
Republic
of
Uruguay:
4.38%,
10/27/27
..................
3,870
4,470,221
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
33
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Uruguay
(continued)
5.10%,
06/18/50
..................
USD
680
$
911,837
5,382,058
Total
Foreign
Government
Obligations
—
5.3%
(Cost:
$222,646,127)
..............................
227,610,749
Municipal
Bonds
—
2.7%
California
-
0.7%
Bay
Area
Toll
Authority:
Series
2010S-1,
RB,
6.92%, 04/01/40
....
1,090
1,677,129
Series
2010S-1,
RB,
7.04%, 04/01/50
....
1,875
3,372,169
California
State
University,
Series
2020B,
RB,
2.98%, 11/01/51
..................
1,720
1,797,090
Los
Angeles
Community
College
District,
Series
2010E,
GO,
6.60%, 08/01/42
..........
980
1,668,274
Los
Angeles
Department
of
Water,
Series
2009C,
RB,
6.01%, 07/01/39
..........
750
1,025,812
Los
Angeles
Unified
School
District,
Series
2010I,
GO,
6.76%, 07/01/34
..........
1,870
2,767,394
San
Jose
Redevelopment
Agency
Successor
Agency,
Series
2017A-T,
3.18%, 08/01/26
.
445
496,500
State
of
California:
Series
2009,
GO,
7.50%, 04/01/34
......
365
604,969
Series
2018,
GO,
4.60%, 04/01/38
......
4,110
4,879,433
Series
2009,
GO,
7.55%, 04/01/39
......
1,105
1,924,059
Series
2009,
GO,
7.30%, 10/01/39
......
420
689,648
University
of
California:
Series
2009R,
RB,
5.77%, 05/15/43
.....
4,260
6,204,605
Series
2012AD,
RB,
4.86%, 05/15/2112
..
334
474,507
27,581,589
Colorado
-
0.0%
Colorado
Health
Facilities
Authority,
Series
2019A-2,
RB,
5.00%, 08/01/44
.........
1,330
1,608,688
Delaware
-
0.1%
State
of
Delaware,
Series
2019,
GO,
5.00%, 02/01/24
..................
2,320
2,692,754
District
of
Columbia
-
0.0%
District
of
Columbia,
Series
2016A,
GO,
5.00%, 06/01/41
..................
675
820,307
Florida
-
0.1%
County
of
Miami-Dade:
Series
2019E,
RB,
2.45%, 10/01/29
.....
2,500
2,496,825
Series
2019E,
RB,
2.53%, 10/01/30
.....
1,215
1,212,278
3,709,103
Georgia
-
0.0%
Municipal
Electric
Authority
of
Georgia:
Series
2010A,
RB,
6.64%, 04/01/57
.....
515
768,411
Series
2010A,
RB,
6.66%, 04/01/57
.....
389
589,868
1,358,279
Hawaii
-
0.0%
State
of
Hawaii,
Series
2020FZ,
GO,
1.70%, 08/01/32
..................
85
84,566
Illinois
-
0.1%
State
of
Illinois,
Series
2003,
GO,
5.10%, 06/01/33
..................
3,525
3,538,994
Massachusetts
-
0.1%
Commonwealth
of
Massachusetts:
Series
2009E,
GO,
5.46%, 12/01/39
.....
95
134,814
Series
2017F,
GO,
5.00%, 11/01/40
.....
1,350
1,668,317
Security
Par
(000)
Par
(000)
Value
Massachusetts
(continued)
Series
2017F,
GO,
5.00%, 11/01/46
.....
USD
2,575
$
3,115,750
Series
2019H,
GO,
2.90%, 09/01/49
.....
50
55,031
Massachusetts
Housing
Finance
Agency:
Series
2014B,
RB,
4.50%, 12/01/39
.....
215
227,511
Series
2014B,
RB,
4.60%, 12/01/44
.....
220
238,022
Series
2015A,
RB,
4.50%, 12/01/48
.....
275
294,555
Massachusetts
School
Building
Authority,
Series
2019B,
RB,
2.87%, 10/15/31
.....
1,115
1,204,468
6,938,468
Michigan
-
0.0%
Michigan
Finance
Authority,
Series
2016,
RB,
5.00%, 11/15/28
..................
290
356,628
Michigan
State
Housing
Development
Authority:
Series
2018B,
RB,
3.55%, 10/01/33
.....
250
274,205
Series
2018A,
RB,
4.00%, 10/01/43
.....
240
263,969
Series
2018A,
RB,
4.05%, 10/01/48
.....
110
120,776
1,015,578
Mississippi
-
0.0%
State
of
Mississippi:
Series
2020A,
GO,
1.63%, 11/01/31
.....
30
30,693
Series
2020A,
GO,
1.73%, 11/01/32
.....
100
102,466
133,159
New
Jersey
-
0.1%
New
Jersey
Transportation
Trust
Fund
Authority:
Series
2010C,
RB,
5.75%, 12/15/28
.....
350
398,500
Series
2019B,
RB,
4.08%, 06/15/39
.....
1,500
1,426,380
New
Jersey
Turnpike
Authority,
Series
2009F,
RB,
7.41%, 01/01/40
...............
496
835,790
Rutgers
The
State
University
of
New
Jersey:
Series
2010H,
RB,
5.67%, 05/01/40
.....
1,770
2,457,486
Series
2019R,
RB,
3.27%, 05/01/43
.....
510
550,264
5,668,420
New
York
-
0.8%
Long
Island
Power
Authority,
Series
2017,
RB,
5.00%, 09/01/47
..................
1,145
1,363,260
Metropolitan
Transportation
Authority:
Series
2010A,
RB,
6.67%, 11/15/39
.....
200
254,104
Series
2010E,
RB,
6.81%, 11/15/40
.....
610
784,442
New
York
City
Housing
Development
Corp.:
Series
2018C-1-A,
RB,
3.70%, 11/01/38
..
260
275,925
Series
2018C-1-B,
RB,
3.85%, 11/01/43
..
780
836,027
Series
2014C-1-A,
RB,
4.20%, 11/01/44
..
3,490
3,665,442
New
York
City
Transitional
Finance
Authority
Future
Tax
Secured:
Series
2018,
Sub-Series
C-4,
RB,
3.55%, 05/01/25
................
495
553,247
Series
2018,
Sub-Series
C-5,
RB,
3.90%, 05/01/31
................
3,000
3,429,480
New
York
City
Water
&
Sewer
System:
Series
2010GG,
RB,
5.72%, 06/15/42
....
1,720
2,674,927
Series
2020AA,
RB,
5.38%, 06/15/43
(h)
...
2,725
2,753,558
Series
2020AA,
RB,
5.38%, 06/15/43
....
1,395
1,409,299
Series
2011AA,
RB,
5.44%, 06/15/43
....
775
1,197,925
Series
2011EE,
RB,
5.50%, 06/15/43
(h)
...
3,525
3,563,246
Series
2011CC,
RB,
5.88%, 06/15/44
....
330
529,396
New
York
State
Dormitory
Authority:
Series
2010H,
RB,
5.39%, 03/15/40
.....
320
448,416
Series
2020A,
RB,
2.99%, 07/01/40
.....
135
140,663
Series
2020F,
RB,
3.19%, 02/15/43
.....
400
433,776
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
34
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
New
York
(continued)
New
York
State
Urban
Development
Corp.,
Series
2019B,
RB,
3.90%, 03/15/33
.....
USD
2,485
$
2,847,089
New
York
Transportation
Development
Corp.,
Series
2018,
RB,
5.00%, 01/01/30
......
1,365
1,482,704
Port
Authority
of
New
York
&
New
Jersey:
Series
2014-181,
RB,
4.96%, 08/01/46
...
1,665
2,242,255
Series
2012-174,
RB,
4.46%, 10/01/62
...
920
1,178,676
Triborough
Bridge
&
Tunnel
Authority,
Series
2017A,
RB,
5.00%, 11/15/47
..........
2,135
2,521,392
34,585,249
Ohio
-
0.0%
American
Municipal
Power,
Inc.:
Series
2010B,
RB,
7.83%, 02/15/41
.....
350
583,349
Series
2010B,
RB,
8.08%, 02/15/50
.....
570
1,042,285
1,625,634
Oregon
-
0.0%
State
of
Oregon,
Series
2003,
GO,
5.89%, 06/01/27
..................
850
1,075,760
South
Carolina
-
0.0%
South
Carolina
Public
Service
Authority,
Series
2016D,
RB,
2.39%, 12/01/23
..........
495
520,106
Texas
-
0.3%
City
of
San
Antonio
Electric
&
Gas
Systems:
Series
2010A,
RB,
5.72%, 02/01/41
.....
715
1,041,698
Series
2010A,
RB,
5.81%, 02/01/41
.....
815
1,230,438
State
of
Texas,
Series
2009A,
GO,
5.52%, 04/01/39
..................
4,485
6,677,044
8,949,180
Utah
-
0.1%
Utah
Transit
Authority,
Series
2009B,
RB,
5.94%, 06/15/39
..................
1,455
2,099,580
Virginia
-
0.0%
Virginia
College
Building
Authority,
Series
2020B,
RB,
1.97%, 02/01/32
..........
840
852,281
Washington
-
0.3%
Central
Puget
Sound
Regional
Transit
Authority,
Series
2015S-1,
RB,
5.00%, 11/01/50
....
420
500,153
City
of
Seattle:
Series
2019A,
RB,
5.00%, 04/01/46
.....
1,355
1,698,587
Series
2019A,
RB,
5.00%, 04/01/47
.....
1,935
2,421,014
Series
2019A,
RB,
5.00%, 04/01/48
.....
1,170
1,461,880
State
of
Washington,
Series
2018C,
GO,
5.00%, 02/01/39
..................
1,935
2,413,158
8,494,792
Total
Municipal
Bonds
—
2.7%
(Cost:
$104,511,412)
..............................
113,352,487
Non-Agency
Mortgage-Backed
Securities
—
3.9%
Collateralized
Mortgage
Obligations
—
0.9%
Angel
Oak
Mortgage
Trust
(b)(d)
:
Series
2020-3,
Class
A3,
2.87%,
04/25/65
.
2,337
2,348,345
Series
2020-3,
Class
M1,
3.81%,
04/25/65
.
880
892,115
Series
2020-4,
Class
A3,
2.81%,
06/25/65
.
1,002
1,006,118
Angel
Oak
Mortgage
Trust
I
LLC,
Series
2019-
4,
Class
A3,
3.30%,
07/26/49
(b)(d)
.......
1,516
1,531,604
CHL
Mortgage
Pass-Through
Trust,
Series
2004-29,
Class
1A1,
0.69%,
02/25/35
(d)
...
259
243,384
COLT
Mortgage
Loan
Trust,
Series
2020-3,
Class
A3,
2.38%,
04/27/65
(b)(d)
.........
938
939,012
Security
Par
(000)
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2020-SPT1,
Class
M1,
3.85%,
04/25/65
(b)(d)
.....................
USD
1,020
$
1,029,459
Deephaven
Residential
Mortgage
Trust,
Series
2020-2,
Class
A3,
2.86%,
05/25/65
(b)
.....
2,000
2,007,700
Homeward
Opportunities
Fund
I
Trust
(b)(d)
:
Series
2020-2,
Class
A2,
2.63%,
05/25/65
.
1,733
1,778,570
Series
2020-2,
Class
A3,
3.20%,
05/25/65
.
1,237
1,279,478
JPMorgan
Mortgage
Trust,
Series
2017-3,
Class
1A6,
3.00%,
08/25/47
(b)(d)
........
1,328
1,332,140
MFA
Trust,
Series
2020-NQM1,
Class
A3,
2.30%,
08/25/49
(b)(d)
................
1,469
1,476,850
Mortgage
Loan
Resecuritization
Trust,
Series
2009-RS1,
Class
A85,
0.50%,
04/16/36
(b)(d)
6,102
5,382,907
MortgageIT
Trust,
Series
2004-1,
Class
A1,
0.93%,
11/25/34
(d)
.................
415
422,109
New
Residential
Mortgage
Loan
Trust,
Series
2019-2A,
Class
A1,
4.25%,
12/25/57
(b)(d)
..
403
433,440
Residential
Mortgage
Loan
Trust
(b)(d)
:
Series
2020-2,
Class
A2,
2.51%,
05/25/60
.
1,500
1,509,194
Series
2020-2,
Class
M1,
3.57%,
05/25/60
.
1,680
1,723,877
Structured
Asset
Securities
Corp.
Assistance
Loan
Trust,
Series
2003-AL1,
Class
A,
3.36%,
04/25/31
(b)
.................
194
193,432
Verus
Securitization
Trust
(b)
:
Series
2019-INV2,
Class
M1,
3.50%,
07/25/59
(d)
....................
3,000
3,057,433
Series
2020-4,
Class
A3,
2.32%,
05/25/65
(f)
1,928
1,935,188
Series
2020-4,
Class
M1,
3.29%,
05/25/65
(d)
670
684,484
Series
2020-INV1,
Class
A2,
3.04%,
03/25/60
(d)
....................
902
926,155
Series
2020-INV1,
Class
A3,
3.89%,
03/25/60
(d)
....................
1,000
1,040,739
Visio
Trust,
Series
2020-1,
Class
M1,
4.45%,
08/25/55
(b)(d)
.....................
2,000
2,045,800
Vista
Point
Securitization
Trust
(b)(d)
:
Series
2020-1,
Class
A1,
1.76%,
03/25/65
.
3,269
3,286,589
Series
2020-2,
Class
A3,
2.50%,
04/25/65
.
1,944
1,945,253
40,451,375
Commercial
Mortgage-Backed
Securities
—
2.7%
1211
Avenue
of
the
Americas
Trust,
Series
2015-1211,
Class
D,
4.28%,
08/10/35
(b)(d)
..
1,401
1,439,589
280
Park
Avenue
Mortgage
Trust,
Series
2017-
280P,
Class
D,
1.69%,
09/15/34
(b)(d)
......
640
625,546
AOA
Mortgage
Trust,
Series
2015-1177,
Class
C,
3.11%,
12/13/29
(b)(d)
..............
2,390
2,373,876
Ashford
Hospitality
Trust,
Series
2018-ASHF,
Class
D,
2.25%,
04/15/35
(b)(d)
..........
174
158,390
Atrium
Hotel
Portfolio
Trust,
Series
2017-ATRM,
Class
D,
2.10%,
12/15/36
(b)(d)
..........
4,050
3,407,914
BAMLL
Commercial
Mortgage
Securities
Trust
(b)
(d)
:
Series
2017-SCH,
Class
AF,
1.15%,
11/15/33
.....................
1,480
1,399,612
Series
2017-SCH,
Class
CL,
1.65%,
11/15/32
.....................
1,450
1,239,619
Series
2017-SCH,
Class
DL,
2.15%,
11/15/32
.....................
1,490
1,218,477
Series
2018-DSNY,
Class
C,
1.50%,
09/15/34
.....................
1,000
941,155
Series
2018-DSNY,
Class
D,
1.85%,
09/15/34
.....................
830
766,953
BANK:
Series
2017-BNK9,
Class
A4,
3.54%,
11/15/54
.....................
920
1,048,706
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
35
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2019-BN19,
Class
C,
4.17%,
08/15/61
(d)
....................
USD
187
$
203,992
Series
2019-BN21,
Class
A5,
2.85%,
10/17/52
.....................
251
277,691
Series
2020-BN28,
Class
D,
2.50%,
03/15/63
(b)
....................
2,300
2,010,350
Bayview
Commercial
Asset
Trust
(b)(d)
:
Series
2005-3A,
Class
A1,
0.47%,
11/25/35
297
278,905
Series
2005-4A,
Class
A1,
0.45%,
01/25/36
2,250
2,102,242
BBCMS
Mortgage
Trust:
Series
2018-TALL,
Class
A,
0.87%,
03/15/37
(b)(d)
...................
232
222,772
Series
2018-TALL,
Class
D,
1.60%,
03/15/37
(b)(d)
...................
600
562,549
Series
2019-BWAY,
Class
D,
2.31%,
11/25/34
(b)(d)
...................
510
471,907
Series
2020-C6,
Class
A4,
2.64%,
02/15/53
1,050
1,147,209
BBCMS
Trust,
Series
2015-SRCH,
Class
A1,
3.31%,
08/10/35
(b)
.................
1,109
1,168,356
BB-UBS
Trust,
Series
2012-SHOW,
Class
E,
4.16%,
11/05/36
(b)(d)
................
260
208,895
Bear
Stearns
Commercial
Mortgage
Securities
Trust
(d)
:
Series
2005-PWR7,
Class
B,
5.21%,
02/11/41
.....................
87
86,084
Series
2007-T26,
Class
AM,
5.51%,
01/12/45
.....................
175
175,025
Benchmark
Mortgage
Trust:
Series
2018-B3,
Class
D,
3.21%,
04/10/51
(b)
(d)
..........................
130
101,745
Series
2018-B5,
Class
A3,
3.94%,
07/15/51
1,110
1,302,127
Series
2019-B10,
Class
3CCA,
4.03%,
03/15/62
(b)(d)
...................
823
850,476
Series
2020-B16,
Class
C,
3.66%,
02/15/53
(d)
....................
126
124,798
Series
2020-B16,
Class
D,
2.50%,
02/15/53
(b)
....................
413
348,084
BWAY
Mortgage
Trust
(b)
:
Series
2013-1515,
Class
A2,
3.45%,
03/10/33
.....................
710
764,108
Series
2013-1515,
Class
C,
3.45%,
03/10/33
2,810
2,866,529
Series
2013-1515,
Class
E,
3.72%,
03/10/33
100
99,449
BX
Commercial
Mortgage
Trust,
Series
2020-
VIV3,
Class
B,
3.54%,
03/09/44
(b)
.......
1,600
1,607,811
BX
Trust
(b)
:
Series
2019-OC11,
Class
A,
3.20%,
12/09/41
.....................
110
116,438
Series
2019-OC11,
Class
D,
4.08%,
12/09/41
(d)
....................
1,982
1,923,025
BXP
Trust
(b)(d)
:
Series
2017-CC,
Class
D,
3.67%,
08/13/37
210
209,042
Series
2017-GM,
Class
D,
3.54%,
06/13/39
140
146,406
CAMB
Commercial
Mortgage
Trust,
Series
2019-LIFE,
Class
D,
1.90%,
12/15/37
(b)(d)
..
815
812,491
CD
Mortgage
Trust:
Series
2006-CD3,
Class
AM,
5.65%,
10/15/48
.....................
1,259
1,287,383
Series
2017-CD3,
Class
A4,
3.63%,
02/10/50
.....................
280
317,343
Series
2017-CD4,
Class
A4,
3.51%,
05/10/50
(d)
....................
720
813,182
Series
2017-CD5,
Class
B,
3.96%,
08/15/50
(d)
....................
446
488,263
CFCRE
Commercial
Mortgage
Trust:
Series
2016-C3,
Class
A3,
3.87%,
01/10/48
110
123,306
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2018-TAN,
Class
C,
5.29%,
02/15/33
(b)
....................
USD
840
$
819,761
CGDBB
Commercial
Mortgage
Trust
(b)(d)
:
Series
2017-BIOC,
Class
A,
0.94%,
07/15/32
.....................
822
822,057
Series
2017-BIOC,
Class
D,
1.75%,
07/15/32
.....................
1,316
1,313,912
CHC
Commercial
Mortgage
Trust,
Series
2019-
CHC,
Class
B,
1.65%,
06/15/34
(b)(d)
......
1,605
1,514,007
Citigroup
Commercial
Mortgage
Trust:
Series
2013-375P,
Class
C,
3.63%,
05/10/35
(b)(d)
...................
245
246,323
Series
2014-GC19,
Class
C,
5.26%,
03/10/47
(d)
....................
120
126,040
Series
2015-GC27,
Class
B,
3.77%,
02/10/48
.....................
240
250,682
Series
2016-C1,
Class
D,
5.12%,
05/10/49
(b)
(d)
..........................
110
93,493
Series
2016-P3,
Class
C,
5.05%,
04/15/49
(d)
501
488,570
Series
2016-P3,
Class
D,
2.80%,
04/15/49
(b)
(d)
..........................
29
17,657
Series
2017-C4,
Class
A4,
3.47%,
10/12/50
290
329,008
Series
2018-C6,
Class
A4,
4.41%,
11/10/51
460
552,789
Series
2019-C7,
Class
A4,
3.10%,
12/15/72
260
293,520
Commercial
Mortgage
Trust:
Series
2013-GAM,
Class
E,
3.53%,
02/10/28
(b)(d)
...................
490
349,226
Series
2014-CR14,
Class
A4,
4.24%,
02/10/47
(d)
....................
600
651,334
Series
2014-CR15,
Class
C,
4.89%,
02/10/47
(d)
....................
853
906,111
Series
2014-CR18,
Class
A4,
3.55%,
07/15/47
.....................
124
133,628
Series
2014-CR19,
Class
A5,
3.80%,
08/10/47
.....................
440
483,142
Series
2014-CR21,
Class
A3,
3.53%,
12/10/47
.....................
305
330,648
Series
2014-LC15,
Class
A4,
4.01%,
04/10/47
.....................
320
348,393
Series
2014-UBS4,
Class
C,
4.80%,
08/10/47
(d)
....................
153
151,819
Series
2015-CR24,
Class
A5,
3.70%,
08/10/48
.....................
300
335,680
Series
2015-CR25,
Class
A4,
3.76%,
08/10/48
.....................
854
955,387
Series
2015-LC19,
Class
D,
2.87%,
02/10/48
(b)
....................
115
102,250
Series
2015-LC23,
Class
A4,
3.77%,
10/10/48
.....................
200
224,590
Series
2016-667M,
Class
D,
3.28%,
10/10/36
(b)(d)
...................
440
428,531
Series
2017-COR2,
Class
A3,
3.51%,
09/10/50
.....................
270
302,043
Series
2017-COR2,
Class
D,
3.00%,
09/10/50
(b)
....................
1,829
1,461,357
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2020-NET,
Class
D,
3.83%,
08/15/37
(b)(d)
.....................
600
600,687
CSAIL
Commercial
Mortgage
Trust:
Series
2015-C2,
Class
A4,
3.50%,
06/15/57
270
297,516
Series
2016-C5,
Class
B,
4.46%,
11/15/48
(d)
510
549,864
Series
2018-CX12,
Class
A4,
4.22%,
08/15/51
(d)
....................
90
107,039
Series
2019-C15,
Class
A4,
4.05%,
03/15/52
870
1,015,084
Series
2019-C16,
Class
C,
4.24%,
06/15/52
(d)
....................
649
638,463
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
36
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2019-C17,
Class
C,
3.93%,
09/15/52
USD
672
$
722,946
Series
2019-C17,
Class
D,
2.50%,
09/15/52
(b)
....................
522
384,350
Series
2020-C19,
Class
A3,
2.56%,
03/15/53
2,320
2,496,894
CSMC
Trust
(b)
:
Series
2017-CALI,
Class
C,
3.90%,
11/10/32
(d)
....................
370
389,268
Series
2017-PFHP,
Class
A,
1.10%,
12/15/30
(d)
....................
530
515,531
Series
2017-TIME,
Class
A,
3.65%,
11/13/39
230
229,010
DBGS
Mortgage
Trust,
Series
2018-5BP,
Class
B,
0.98%,
06/15/33
(b)(d)
..............
610
599,563
DBJPM
Mortgage
Trust,
Series
2016-C1,
Class
A4,
3.28%,
05/10/49
...............
240
264,923
DBUBS
Mortgage
Trust
(b)
:
Series
2011-LC1A,
Class
E,
5.79%,
11/10/46
(d)
....................
1,310
1,309,278
Series
2017-BRBK,
Class
A,
3.45%,
10/10/34
.....................
1,080
1,157,971
Series
2017-BRBK,
Class
D,
3.65%,
10/10/34
(c)(d)
...................
360
357,837
Eleven
Madison
Trust
Mortgage
Trust,
Series
2015-11MD,
Class
A,
3.67%,
09/10/35
(b)(d)
.
350
381,561
GPMT
Ltd.,
Series
2018-FL1,
Class
A,
1.06%,
11/21/35
(b)(d)
.....................
96
95,197
GS
Mortgage
Securities
Corp.
II
(b)
:
Series
2005-ROCK,
Class
A,
5.37%,
05/03/32
.....................
800
928,706
Series
2012-TMSQ,
Class
D,
3.57%,
12/10/30
(d)
....................
250
218,549
GS
Mortgage
Securities
Corp.
Trust
(b)
:
Series
2016-RENT,
Class
C,
4.20%,
02/10/29
(d)
....................
395
393,149
Series
2017-500K,
Class
D,
1.55%,
07/15/32
(d)
....................
360
357,335
Series
2017-GPTX,
Class
A,
2.86%,
05/10/34
.....................
570
559,920
Series
2019-BOCA,
Class
A,
1.35%,
06/15/38
(d)
....................
317
309,113
Series
2019-SOHO,
Class
A,
1.05%,
06/15/36
(d)
....................
760
754,357
GS
Mortgage
Securities
Trust:
Series
2012-GCJ9,
Class
C,
4.45%,
11/10/45
(b)(d)
...................
280
283,907
Series
2014-GC20,
Class
B,
4.53%,
04/10/47
(d)
....................
400
418,994
Series
2015-GC32,
Class
C,
4.57%,
07/10/48
(d)
....................
170
166,903
Series
2015-GS1,
Class
A3,
3.73%,
11/10/48
.....................
150
167,284
Series
2017-GS7,
Class
D,
3.00%,
08/10/50
(b)
....................
150
120,889
Series
2017-GS7,
Class
E,
3.00%,
08/10/50
(b)
....................
50
36,660
Series
2019-GSA1,
Class
C,
3.93%,
11/10/52
(d)
....................
110
102,125
HMH
Trust,
Series
2017-NSS,
Class
A,
3.06%,
07/05/31
(b)
......................
1,890
1,822,583
Hudson
Yards
Mortgage
Trust,
Series
2016-
10HY,
Class
A,
2.84%,
08/10/38
(b)
.......
660
708,801
IMT
Trust
(b)
:
Series
2017-APTS,
Class
AFX,
3.48%,
06/15/34
.....................
440
467,754
Series
2017-APTS,
Class
DFX,
3.61%,
06/15/34
(d)
....................
730
699,816
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
JP
Morgan
Chase
Commercial
Mortgage
Securities
Corp.,
Series
2018-AON,
Class
D,
4.77%,
07/05/31
(b)(d)
................
USD
323
$
333,133
JPMBB
Commercial
Mortgage
Securities
Trust:
Series
2014-C21,
Class
A5,
3.77%,
08/15/47
450
492,970
Series
2014-C22,
Class
B,
4.71%,
09/15/47
(d)
....................
2,000
1,998,890
Series
2014-C26,
Class
A4,
3.49%,
01/15/48
753
825,225
Series
2015-C33,
Class
D1,
4.27%,
12/15/48
(b)(d)
...................
553
433,918
JPMCC
Commercial
Mortgage
Securities
Trust:
Series
2017-JP5,
Class
D,
4.78%,
03/15/50
(b)(d)
...................
520
384,021
Series
2017-JP6,
Class
A5,
3.49%,
07/15/50
270
305,788
Series
2017-JP7,
Class
B,
4.05%,
09/15/50
90
97,021
Series
2019-COR5,
Class
A3,
3.12%,
06/13/52
.....................
390
434,953
Series
2019-COR5,
Class
C,
3.75%,
06/13/52
.....................
219
209,677
JPMDB
Commercial
Mortgage
Securities
Trust,
Series
2018-C8,
Class
A4,
4.21%,
06/15/51
200
237,888
JPMorgan
Chase
Commercial
Mortgage
Securities
Corp.,
Series
2018-AON,
Class
A,
4.13%,
07/05/31
(b)
.................
642
683,213
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust:
Series
2012-CBX,
Class
A4FL,
1.45%,
06/15/45
(b)(d)
...................
102
102,468
Series
2014-C20,
Class
A5,
3.80%,
07/15/47
480
523,831
Series
2015-JP1,
Class
A5,
3.91%,
01/15/49
50
56,679
Series
2015-JP1,
Class
C,
4.87%,
01/15/49
(d)
....................
730
734,650
Series
2015-JP1,
Class
D,
4.37%,
01/15/49
(d)
....................
770
624,236
Series
2015-JP1,
Class
E,
4.37%,
01/15/49
(b)
(d)
..........................
299
208,371
Series
2016-NINE,
Class
A,
2.95%,
09/06/38
(b)(d)
...................
193
207,537
Series
2018-WPT,
Class
DFX,
5.35%,
07/05/33
(b)
....................
1,000
994,980
LCCM
Mortgage
Trust,
Series
2014-909,
Class
A,
3.39%,
05/15/31
(b)
...............
470
471,774
MAD
Mortgage
Trust,
Series
2017-330M,
Class
D,
4.11%,
08/15/34
(b)(d)
..............
300
304,759
Manhattan
West,
Series
2020-1MW,
Class
D,
2.41%,
09/10/39
(b)(d)
................
267
259,669
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust:
Series
2014-C16,
Class
A5,
3.89%,
06/15/47
1,120
1,218,511
Series
2015-C23,
Class
A4,
3.72%,
07/15/50
248
274,787
Series
2015-C23,
Class
D,
4.29%,
07/15/50
(b)(d)
...................
116
102,345
Series
2015-C25,
Class
B,
4.68%,
10/15/48
(d)
....................
620
693,635
Series
2015-C25,
Class
C,
4.68%,
10/15/48
(d)
....................
320
341,758
Series
2015-C26,
Class
A5,
3.53%,
10/15/48
74
82,225
Series
2015-C26,
Class
D,
3.06%,
10/15/48
(b)
....................
313
222,804
Series
2016-C31,
Class
A5,
3.10%,
11/15/49
460
505,198
Series
2017-C33,
Class
C,
4.56%,
05/15/50
(d)
....................
585
575,354
Morgan
Stanley
Capital
Barclays
Bank
Trust,
Series
2016-MART,
Class
A,
2.20%,
09/13/31
(b)
......................
200
199,430
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
37
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Morgan
Stanley
Capital
I
Trust:
Series
2007-T27,
Class
AJ,
6.21%,
06/11/42
(d)
....................
USD
311
$
311,615
Series
2014-150E,
Class
D,
4.44%,
09/09/32
(b)(d)
...................
642
647,534
Series
2014-CPT,
Class
E,
3.56%,
07/13/29
(b)(d)
...................
350
354,763
Series
2017-H1,
Class
C,
4.28%,
06/15/50
(d)
121
122,893
Series
2017-H1,
Class
D,
2.55%,
06/15/50
(b)
2,440
1,777,814
Series
2017-HR2,
Class
D,
2.73%,
12/15/50
(c)
....................
1,360
1,101,600
Series
2018-H3,
Class
A5,
4.18%,
07/15/51
37
43,921
Series
2018-H3,
Class
C,
5.01%,
07/15/51
(d)
220
227,332
Series
2018-H3,
Class
D,
3.00%,
07/15/51
(b)
510
366,247
Series
2018-L1,
Class
A3,
4.14%,
10/15/51
120
137,910
Series
2018-SUN,
Class
A,
1.30%,
07/15/35
(b)(d)
...................
300
290,303
Series
2019-H6,
Class
A4,
3.42%,
06/15/52
420
477,865
Series
2019-H7,
Class
A4,
3.26%,
07/15/52
520
585,845
Series
2019-L2,
Class
A4,
4.07%,
03/15/52
347
409,277
Series
2020-L4,
Class
D,
2.50%,
02/15/53
(b)
875
698,678
Natixis
Commercial
Mortgage
Securities
Trust
(b)
:
Series
2018-FL1,
Class
A,
1.11%,
06/15/35
(d)
177
171,011
Series
2018-SOX,
Class
A,
4.40%,
06/17/38
886
970,442
Series
2019-LVL,
Class
D,
4.44%,
08/15/38
(d)
....................
310
303,852
One
Market
Plaza
Trust,
Series
2017-1MKT,
Class
D,
4.15%,
02/10/32
(b)
...........
920
939,276
Prima
Capital
CRE
Securitization
Ltd.,
Series
2015-4A,
Class
C,
4.00%,
08/24/49
(b)(c)
...
370
357,531
Scorpio
European
Loan
Conduit
No.
34
DAC,
Series
34A,
Class
C,
2.17%,
05/17/29
(b)(d)
.
GBP
260
314,737
SG
Commercial
Mortgage
Securities
Trust,
Series
2019-PREZ,
Class
D,
3.59%,
09/15/39
(b)(d)
.....................
USD
460
454,716
VNDO
Mortgage
Trust,
Series
2013-PENN,
Class
D,
4.08%,
12/13/29
(b)(d)
..........
150
148,776
VNDO
Trust,
Series
2016-350P,
Class
D,
4.03%,
01/10/35
(b)(d)
................
710
725,900
Wells
Fargo
Commercial
Mortgage
Trust:
Series
2014-LC18,
Class
A5,
3.41%,
12/15/47
.....................
130
141,796
Series
2015-C27,
Class
C,
3.89%,
02/15/48
425
405,465
Series
2015-C28,
Class
A4,
3.54%,
05/15/48
220
242,509
Series
2015-C31,
Class
A4,
3.70%,
11/15/48
250
279,616
Series
2015-NXS1,
Class
A5,
3.15%,
05/15/48
.....................
89
96,358
Series
2015-NXS2,
Class
A5,
3.77%,
07/15/58
(d)
....................
890
989,507
Series
2015-NXS4,
Class
A4,
3.72%,
12/15/48
.....................
150
168,052
Series
2015-P2,
Class
A4,
3.81%,
12/15/48
510
572,967
Series
2016-C32,  1.57%,
01/15/59
(d)
....
720
720,000
Series
2016-C34,
Class
A3FL,
1.19%,
06/15/49
(b)(d)
...................
390
389,596
Series
2016-NXS5,
Class
B,
5.10%,
01/15/59
(d)
....................
200
228,567
Series
2016-NXS5,
Class
D,
5.14%,
01/15/59
(d)
....................
2,717
2,359,783
Series
2017-C39,
Class
D,
4.50%,
09/15/50
(b)(d)
...................
120
95,729
Series
2017-C41,
Class
B,
4.19%,
11/15/50
(d)
....................
3,000
3,186,986
Series
2017-C41,
Class
C,
4.66%,
11/15/50
(d)
....................
200
183,166
Security
Par
(000)
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2017-HSDB,
Class
A,
1.00%,
12/13/31
(b)(d)
...................
USD
397
$
381,218
Series
2018-1745,
Class
A,
3.87%,
06/15/36
(b)(d)
...................
210
231,383
Series
2018-C44,
Class
D,
3.00%,
05/15/51
(b)
....................
83
61,480
Series
2018-C45,
Class
C,
4.73%,
06/15/51
130
132,132
Series
2018-C48,
Class
B,
4.90%,
01/15/52
(d)
....................
766
905,257
Series
2019-C52,
Class
C,
3.56%,
08/15/52
380
388,319
Series
2020-SDAL,
Class
D,
2.24%,
02/15/37
(b)(d)
...................
720
607,236
WFRBS
Commercial
Mortgage
Trust,
Series
2014-C21,
Class
A5,
3.68%,
08/15/47
....
485
530,409
112,878,672
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.3%
(d)
245
Park
Avenue
Trust,
Series
2017-245P,
Class
XA,
0.27%,
06/05/37
(b)
..........
11,000
125,871
Banc
of
America
Commercial
Mortgage
Trust:
Series
2017-BNK3,
Class
XB,
0.78%,
02/15/50
.....................
4,185
155,497
Series
2017-BNK3,
Class
XD,
1.44%,
02/15/50
(b)
....................
2,000
135,440
BANK:
Series
2019-BN20,
Class
XA,
0.96%,
09/15/62
.....................
2,470
154,585
Series
2019-BN20,
Class
XB,
0.46%,
09/15/62
.....................
8,371
250,715
Barclays
Commercial
Mortgage
Trust,
Series
2019-C3,
Class
XA,
1.51%,
05/15/52
....
2,193
204,434
BBCMS
Mortgage
Trust,
Series
2020-C7,
Class
XA,
1.63%,
04/15/53
...............
1,816
199,412
BBCMS
Trust,
Series
2015-SRCH,
Class
XA,
1.12%,
08/10/35
(b)
.................
7,265
366,735
BB-UBS
Trust,
Series
2012-SHOW,
Class
XA,
0.73%,
11/05/36
(b)
.................
65,905
1,528,831
Benchmark
Mortgage
Trust:
Series
2019-B13,
Class
XA,
1.27%,
08/15/57
.....................
12,346
956,982
Series
2019-B9,
Class
XA,
1.21%,
03/15/52
4,936
354,071
Series
2020-B17,
Class
XB,
0.65%,
03/15/53
(c)
....................
1,560
65,520
CFCRE
Commercial
Mortgage
Trust,
Series
2016-C4,
Class
XB,
0.89%,
05/10/58
....
2,030
76,430
Commercial
Mortgage
Trust:
Series
2013-CR6,
Class
XA,
1.16%,
03/10/46
.....................
14,778
250,993
Series
2015-3BP,
Class
XA,
0.17%,
02/10/35
(b)
....................
40,878
165,965
Series
2018-COR3,
Class
XD,
1.75%,
05/10/51
(b)
....................
770
82,683
CSAIL
Commercial
Mortgage
Trust:
Series
2017-CX10,
Class
XB,
0.22%,
11/15/50
.....................
3,170
47,295
Series
2019-C16,
Class
XA,
1.73%,
06/15/52
.....................
9,065
961,148
Series
2019-C17,
Class
XA,
1.51%,
09/15/52
.....................
8,596
800,657
Series
2019-C17,
Class
XB,
0.70%,
09/15/52
.....................
4,040
170,820
DBGS
Mortgage
Trust,
Series
2019-1735,
Class
X,
0.43%,
04/10/37
(b)
...........
5,975
146,328
DBJPM
Mortgage
Trust,
Series
2017-C6,
Class
XD,
1.00%,
06/10/50
...............
3,040
162,549
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
38
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Interest
Only
Commercial
Mortgage-Backed
Securities
(continued)
GS
Mortgage
Securities
Trust,
Series
2019-
GSA1,
Class
XA,
0.96%,
11/10/52
......
USD
3,083
$
191,816
JPMBB
Commercial
Mortgage
Securities
Trust,
Series
2014-C22,
Class
XA,
0.98%,
09/15/47
.......................
945
25,717
JPMDB
Commercial
Mortgage
Securities
Trust,
Series
2016-C4,
Class
XC,
0.75%,
12/15/49
(b)
......................
1,800
68,347
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust:
Series
2013-LC11,
Class
XB,
0.65%,
04/15/46
.....................
4,040
52,277
Series
2016-JP3,
Class
XC,
0.75%,
08/15/49
(b)
....................
4,330
161,077
Ladder
Capital
Commercial
Mortgage
Mortgage
Trust,
Series
2013-GCP,
Class
XA,
1.35%,
02/15/36
(b)
......................
2,966
212,945
Morgan
Stanley
Capital
I
Trust:
Series
2017-H1,
Class
XD,
2.36%,
06/15/50
(b)
....................
3,030
358,297
Series
2019-H6,
Class
XB,
0.87%,
06/15/52
5,210
278,239
Series
2019-L2,
Class
XA,
1.19%,
03/15/52
2,050
148,113
Olympic
Tower
Mortgage
Trust,
Series
2017-
OT,
Class
XA,
0.51%,
05/10/39
(b)
.......
10,700
258,726
One
Market
Plaza
Trust
(b)
:
Series
2017-1MKT,
Class
XCP,
0.22%,
02/10/32
.....................
17,050
33,930
Series
2017-1MKT,
Class
XNCP,
0.00%,
02/10/32
(c)
....................
3,410
34
UBS
Commercial
Mortgage
Trust:
Series
2019-C17,
Class
XA,
1.64%,
10/15/52
.....................
6,820
711,441
Series
2019-C18,
Class
XA,
1.18%,
12/15/52
.....................
7,306
519,889
Wells
Fargo
Commercial
Mortgage
Trust:
Series
2016-BNK1,
Class
XD,
1.40%,
08/15/49
(b)
....................
1,180
72,676
Series
2019-C50,
Class
XA,
1.59%,
05/15/52
.....................
4,739
438,456
10,894,941
Total
Non-Agency
Mortgage-Backed
Securities
—
3.9%
(Cost:
$165,125,856)
..............................
164,224,988
Beneficial
Interest
(000)
Other
Interests
—
0.0%
(i)
Capital
Markets
—
0.0%
Lehman
Brothers
Holdings,
Inc.
(c)(j)(k)
.......
16,030
—
Total
Other
Interests
—
0.0%
..........................
—
Par
(000)
Pa
r
(
000)
Capital
Trusts
—
0.3%
Capital
Markets
—
0.2%
(e)(l)
Bank
of
New
York
Mellon
Corp.
(The),
Series
F,
4.62%
.........................
1,874
1,941,933
State
Street
Corp.:
Series
F,
3.85%
...................
1,110
1,103,673
Series
H,
5.63%
..................
3,780
3,890,376
6,935,982
Security
Par
(000)
Par
(000)
Value
Entertainment
—
0.1%
NBCUniversal
Enterprise,
Inc.,
5.25%
(b)(e)
....
USD
5,050
$
5,100,500
Total
Capital
Trusts
—
0.3%
(Cost:
$11,911,597)
...............................
12,036,482
U.S.
Government
Sponsored
Agency
Securities
—
34.0%
Agency
Obligations
—
0.1%
Federal
National
Mortgage
Association,
6.63%, 11/15/30
..................
1,500
2,304,688
Collateralized
Mortgage
Obligations
—
0.0%
Federal
Home
Loan
Mortgage
Corp.:
Series
1591,
Class
PK,
6.35%, 10/15/23
..
164
174,319
Series
2996,
Class
MK,
5.50%, 06/15/35
..
6
6,281
Federal
National
Mortgage
Association:
Series
2005-29,
Class
WB,
4.75%, 04/25/35
65
68,860
Series
2005-62,
Class
CQ,
4.75%, 07/25/35
18
17,952
267,412
Commercial
Mortgage-Backed
Securities
—
0.1%
Federal
Home
Loan
Mortgage
Corp.
Multifamily
Structured
Pass-Through
Certificates
Variable
Rate
Notes,
Series
KL4F,
Class
A2AS,
3.68%, 10/25/25
(d)
............
382
418,910
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(d)
:
Series
2018-K80,
Class
B,
4.37%, 08/25/50
(b)
...............
340
391,420
Series
2018-SB52,
Class
A10F,
3.48%, 06/25/28
................
529
566,531
Series
2018-SB53,
Class
A10F,
3.66%, 06/25/28
................
323
356,064
Federal
National
Mortgage
Association
ACES
Variable
Rate
Notes,
Series
2006-M2,
Class
A2A,
5.27%, 10/25/32
(d)
.............
2,863
3,226,417
Federal
National
Mortgage
Association
Variable
Rate
Notes,
Series
2018-M14,
Class
A2,
3.70%, 08/25/28
(d)
.................
751
886,544
Government
National
Mortgage
Association:
Series
2015-97,
Class
VA,
2.25%, 12/16/38
230
239,143
Series
2016-158,
Class
VA,
2.00%, 03/16/35
148
150,822
6,235,851
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.1%
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes,
Series
K111,
Class
X1,
1.68%, 05/25/30
(d)
.................
4,368
562,619
Government
National
Mortgage
Association
Variable
Rate
Notes:
Series
2012-23,
0.28%, 06/16/53
(d)
......
702
7,083
Series
2013-30,
0.75%, 09/16/53
(d)
......
2,613
82,361
Series
2013-63,
0.83%, 09/16/51
(d)
......
2,945
70,200
Series
2013-78,
0.72%, 10/16/54
(d)
......
2,791
94,132
Series
2013-191,
0.72%, 11/16/53
(d)
.....
799
20,796
Series
2015-22,
0.62%, 03/16/55
(d)
......
1,880
61,456
Series
2015-37,
0.69%, 10/16/56
(d)
......
445
19,747
Series
2015-48,
0.66%, 02/16/50
(d)
......
1,231
41,521
Series
2016-26,
0.90%, 02/16/58
(d)
......
6,991
360,430
Series
2016-67,
1.00%, 07/16/57
(d)
......
632
35,496
Series
2016-92,
0.90%, 04/16/58
(d)
......
1,400
77,993
Series
2016-96,
0.93%, 12/16/57
(d)
......
3,517
192,552
Series
2016-110,
0.98%, 05/16/58
(d)
.....
3,873
234,548
Series
2016-113,
(LIBOR
USD
1
Month
+
0.00%),
1.16%, 02/16/58
(a)
.........
1,556
115,732
Series
2016-128,
0.90%, 09/16/56
(d)
.....
2,696
166,547
Series
2016-152,
0.84%, 08/15/58
(d)
.....
2,395
141,224
Series
2016-162,
0.91%, 09/16/58
(d)
.....
4,400
280,697
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
39
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Interest
Only
Commercial
Mortgage-Backed
Securities
(continued)
Series
2016-165,
0.96%, 12/16/57
(d)
.....
USD
1,530
$
95,461
2,660,595
Mortgage-Backed
Securities
—
33.7%
Federal
Home
Loan
Mortgage
Corp.:
2.50%, 01/01/29
-
04/01/31
...........
5,938
6,317,076
3.00%, 09/01/27
-
12/01/46
...........
14,417
15,569,851
3.50%, 11/01/41
-
01/01/48
...........
12,132
13,378,763
4.00%, 08/01/40
-
02/01/47
...........
4,526
5,023,544
4.50%, 02/01/39
-
04/01/49
...........
27,899
31,133,706
5.00%, 07/01/35
-
11/01/41
...........
3,178
3,651,594
5.50%, 05/01/36
-
06/01/41
...........
2,162
2,507,146
6.00%, 06/01/29
-
12/01/32
...........
4
5,142
8.00%, 11/01/22
..................
—
(m)
138
Federal
National
Mortgage
Association:
4.00%, 01/01/41
..................
189
205,656
7.00%, 06/01/32
..................
11
13,399
Government
National
Mortgage
Association:
2.00%, 10/15/50
(n)
.................
2,090
2,171,314
2.50%, 10/15/50
-
11/15/50
(n)
..........
44,585
46,783,301
3.00%, 12/20/44
-
09/20/50
...........
75,492
79,790,928
3.00%, 10/15/50
-
11/15/50
(n)
..........
29,095
30,461,918
3.50%, 01/15/42
-
04/20/48
...........
47,526
50,796,741
3.50%, 10/15/50
-
11/15/50
(n)
..........
63,886
67,277,418
4.00%, 04/20/39
-
05/20/50
...........
21,886
23,448,161
4.00%, 10/15/50
(n)
.................
18,713
19,882,197
4.50%, 12/20/39
-
04/20/50
...........
21,179
22,942,233
4.50%, 10/15/50
(n)
.................
832
891,540
5.00%, 12/15/38
-
07/20/41
...........
4,093
4,667,936
5.00%, 10/15/50
(n)
.................
48
52,251
5.50%, 03/15/32
-
11/15/33
...........
4
4,327
5.50%, 10/15/50
(n)
.................
4,400
4,828,141
6.00%, 12/15/36
..................
45
50,110
7.50%, 11/15/29
..................
—
(m)
347
Uniform
Mortgage-Backed
Securities:
2.00%, 10/01/31
-
03/01/32
...........
3,414
3,565,119
2.00%, 10/25/35
-
10/25/50
(n)
..........
116,661
120,730,414
2.50%, 09/01/27
-
10/01/50
...........
30,295
32,314,307
2.50%, 10/25/35
-
11/25/50
(n)
..........
65,691
68,838,067
3.00%, 04/01/28
-
09/01/50
...........
168,185
180,710,095
3.00%, 10/25/35
-
11/25/50
(n)
..........
73,308
76,822,429
3.50%, 08/01/27
-
08/01/50
...........
102,700
112,773,979
3.50%, 10/25/35
-
10/25/50
(n)
..........
10,558
11,135,601
4.00%, 08/01/33
-
09/01/50
...........
51,456
57,071,465
4.00%, 10/25/50
-
11/25/50
(n)
..........
134,474
143,505,701
4.50%, 02/01/25
-
01/01/50
...........
131,253
145,220,927
4.50%, 10/25/50
(n)
.................
14,641
15,837,444
5.00%, 11/01/32
-
06/01/45
...........
4,142
4,731,428
5.00%, 10/25/50
(n)
.................
13,305
14,578,850
5.50%, 10/01/21
-
04/01/41
...........
4,946
5,792,062
6.00%, 01/01/21
-
06/01/41
...........
7,065
8,315,979
6.50%, 05/01/40
..................
1,524
1,832,633
1,435,631,378
Total
U.S.
Government
Sponsored
Agency
Securities
—
34.0%
(Cost:
$1,418,231,411)
............................
1,447,099,924
U.S.
Treasury
Obligations
—
16.1%
U.S.
Treasury
Bonds:
4.25%, 05/15/39
-
11/15/40
...........
4,474
6,923,576
4.50%, 08/15/39
..................
1,764
2,792,977
4.38%, 11/15/39
..................
1,764
2,759,971
4.63%, 02/15/40
..................
2,710
4,369,875
3.88%, 08/15/40
..................
2,710
4,017,364
3.13%, 02/15/43
..................
6,784
9,209,015
2.88%, 05/15/43
-
11/15/46
...........
13,320
17,532,213
Security
Par
(000)
Par
(000)
Value
U.S.
Treasury
Obligations
(continued)
3.63%, 08/15/43
..................
USD
6,784
$
9,908,615
3.75%, 11/15/43
..................
6,784
10,095,970
2.50%, 02/15/45
..................
9,684
11,944,609
2.75%, 11/15/47
..................
9,684
12,616,058
3.00%, 02/15/48
..................
16,220
22,094,681
2.25%, 08/15/49
..................
9,235
11,014,541
U.S.
Treasury
Inflation
Linked
Bonds,
0.25%, 02/15/50
..................
15,734
18,597,588
U.S.
Treasury
Inflation
Linked
Notes:
0.63%, 04/15/23
..................
122,057
127,711,163
0.13%, 07/15/30
..................
9,592
10,670,468
U.S.
Treasury
Notes:
1.13%, 07/31/21
..................
29,384
29,629,632
1.75%, 07/31/21
-
11/15/29
...........
106,242
110,817,636
1.50%, 01/31/22
-
02/15/30
...........
71,609
74,812,505
2.13%, 12/31/22
-
05/15/25
...........
40,484
43,261,521
0.50%, 03/15/23
-
05/31/27
...........
22,404
22,560,546
0.25%, 04/15/23
..................
13,778
13,815,136
2.75%, 05/31/23
..................
13,062
13,966,646
2.00%, 02/15/25
..................
16,322
17,572,291
0.38%, 04/30/25
..................
23,263
23,400,215
2.38%, 05/15/27
..................
8,626
9,725,478
2.25%, 08/15/27
..................
21,688
24,330,378
2.88%, 08/15/28
..................
3,916
4,624,704
3.13%, 11/15/28
..................
3,916
4,719,392
1.63%, 08/15/29
..................
7,213
7,855,408
Total
U.S.
Treasury
Obligations
—
16.1%
(Cost:
$655,113,404)
..............................
683,350,172
Total
Long-Term
Investments
—
106.0%
(Cost:
$4,366,505,036)
............................
4,507,123,233
Shares
Shares
Short-Term
Securities
—
8.6%
(o)
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.02%
*
....................
364,094,477
364,094,477
JPMorgan
U.S.
Treasury
Plus
Money
Market
Fund,
Agency
Class,
0.01%
...........
279,163
279,163
Total
Short-Term
Securities
—
8.6%
(Cost:
$364,373,640)
..............................
364,373,640
Total
Options
Purchased
—
0.0%
(Cost:
$3,302,461)
...............................
1,516,922
Total
Investments
Before
Options
Written
and
TBA
Sale
Commitments
—
114.6%
(Cost:
$4,734,181,137
)
............................
4,873,013,795
Total
Options
Written
—
(0.0)%
(Premium
Received
—
$381,675)
.....................
(175,875)
Par
(000)
Pa
r
(
000)
TBA
Sale
Commitments
—
(5.7)%
(n)
Mortgage-Backed
Securities
—
(5.7)%
Government
National
Mortgage
Association:
2.50%, 10/15/50
..................
11,700
(12,287,285)
3.00%, 10/15/50
..................
12,408
(12,991,806)
3.50%, 10/15/50
..................
32,087
(33,785,843)
4.00%, 10/15/50
..................
476
(505,741)
4.50%, 10/15/50
..................
6,454
(7,040,378)
5.00%, 10/15/50
..................
48
(52,251)
5.50%, 10/15/50
..................
4,400
(4,828,142)
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
40
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
Uniform
Mortgage-Backed
Securities:
4.00%, 10/25/35
-
10/25/50
...........
USD
24,820
$
(26,444,140)
2.00%, 10/25/50
..................
928
(959,465)
2.50%, 10/25/50
..................
42,700
(44,789,440)
Security
Par
(000)
Par
(000)
Value
Mortgage-Backed
Securities
(continued)
3.00%, 10/25/50
-
11/25/50
...........
USD
93,104
$
(97,541,533)
Total
TBA
Sale
Commitments
—
(5.7)%
(Proceeds:
$241,353,956)
..........................
(241,226,024)
Total
Investments
Net
of
Options
Written
and
TBA
Sale
Commitments
—
108.9%
(Cost:
$4,492,445,506
)
............................
4,631,611,896
Liabilities
in
Excess
of
Other
Assets
—
(8.9)%
.............
(377,932,925)
Net
Assets
—
100.0%
...............................
$
4,253,678,971
(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)
Perpetual
security
with
no
stated
maturity
date.
(f)
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.
(g)
Zero-coupon
bond.
(h)
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.
(i)
Other
interests
represent
beneficial
interests
in
liquidation
trusts
and
other
reorganization
or
private
entities.
(j)
Issuer
filed
for
bankruptcy
and/or
is
in
default.
(k)
Non-income
producing
security.
(l)
Variable
rate
security.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(m)
Amount
is
less
than
500.
(n)
Represents
or
includes
a
TBA
transaction.
(o)
Annualized
7-day
yield
as
of
period
end.
*
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2020
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/19
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/20
Shares
Held
at
09/30/20
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
.........
$
45,790,217
$
318,304,260
$
—
$
—
$
—
$
364,094,477
364,094,477
$
1,998,205
$
379
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
(b)
.......
—
39,880,368
(41,379,971)
1,499,603
—
—
—
137,045
—
$
1,499,603
$
—
$
364,094,477
$
2,135,250
$
379
(a)
Represents
net
amount
purchased
(sold).
(b)
As
of
period
end,
the
entity
is
no
longer
held.
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.
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
41
Schedule
of
Investments
(continued)
September
30,
2020
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
U.S.
Treasury
Ultra
Bond
....................................................
780
12/21/20
$
173,014
$
(452,665)
U.S.
Treasury
2
Year
Note
....................................................
1,240
12/31/20
273,992
113,954
U.S.
Treasury
5
Year
Note
....................................................
1,096
12/31/20
138,130
51,402
(287,309)
Short
Contracts
Euro-Bund
..............................................................
123
12/08/20
25,168
(34,437)
Euro-
Buxl
...............................................................
119
12/08/20
31,069
(602,837)
Canada
10
Year
Bond
......................................................
223
12/18/20
25,424
20,217
U.S.
Treasury
10
Year
Note
...................................................
1,626
12/21/20
226,878
229,732
U.S.
Treasury
10
Year
Ultra
Note
...............................................
371
12/21/20
59,331
(178,689)
U.S.
Treasury
Long
Bond
....................................................
34
12/21/20
5,994
19,143
(546,871)
$
(834,180)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
USD
840,000
BRL
4,575,060
Barclays
Bank
plc
10/02/20
$
25,337
USD
420,000
BRL
2,335,326
Citibank
NA
10/02/20
4,158
EUR
23,333,500
USD
27,323,529
UBS
AG
10/05/20
35,534
USD
620,345
EUR
527,000
Bank
of
America
NA
10/05/20
2,425
USD
1,389,653
EUR
1,166,000
State
Street
Bank
and
Trust
Co.
10/05/20
22,491
USD
51,341,961
EUR
42,937,000
UBS
AG
10/05/20
997,346
AUD
1,308,000
USD
931,655
Bank
of
America
NA
10/06/20
5,207
USD
960,428
AUD
1,308,000
BNP
Paribas
SA
10/06/20
23,566
USD
3,960,000
BRL
21,309,252
BNP
Paribas
SA
11/03/20
168,799
USD
1,470,000
BRL
7,901,760
UBS
AG
11/03/20
64,171
USD
27,401,112
EUR
23,333,500
Goldman
Sachs
International
11/04/20
24,547
USD
5,410,000
TRY
41,754,380
JPMorgan
Chase
Bank
NA
11/18/20
72,742
USD
3,305,423
COP
12,257,995,898
Barclays
Bank
plc
12/04/20
113,183
USD
1,131,290
MXN
24,260,053
Deutsche
Bank
AG
12/04/20
42,185
USD
11,785,892
RUB
892,150,803
Citibank
NA
12/04/20
371,968
CLP
832,799,600
USD
1,060,000
Citibank
NA
12/16/20
1,645
JPY
89,072,340
USD
840,000
Bank
of
America
NA
12/16/20
5,473
JPY
112,756,995
USD
1,070,000
Morgan
Stanley
&
Co.
International
plc
12/16/20
287
KRW
746,251,380
USD
630,000
UBS
AG
12/16/20
10,081
TWD
23,826,561
USD
830,000
BNP
Paribas
SA
12/16/20
2,345
USD
1,245,383
AUD
1,710,000
Westpac
Banking
Corp.
12/16/20
20,339
USD
1,010,000
BRL
5,428,447
Morgan
Stanley
&
Co.
International
plc
12/16/20
45,466
USD
830,000
CLP
635,315,200
Citibank
NA
12/16/20
20,106
USD
870,000
CLP
669,498,930
HSBC
Bank
plc
12/16/20
16,529
USD
840,000
COP
3,133,334,400
Barclays
Bank
plc
12/16/20
24,540
USD
2,130,607
EUR
1,790,000
Bank
of
America
NA
12/16/20
28,225
USD
21,719,463
EUR
18,310,000
State
Street
Bank
and
Trust
Co.
12/16/20
214,093
USD
1,280,000
KRW
1,490,479,360
UBS
AG
12/16/20
1,573
USD
410,000
MXN
8,684,887
Bank
of
America
NA
12/16/20
20,651
USD
2,520,000
MXN
54,877,470
Goldman
Sachs
International
12/16/20
59,809
USD
1,870,000
MXN
39,864,628
State
Street
Bank
and
Trust
Co.
12/16/20
82,844
USD
1,270,000
PLN
4,757,933
Citibank
NA
12/16/20
38,825
USD
2,910,000
RUB
222,874,623
Citibank
NA
12/16/20
63,477
USD
1,050,000
RUB
82,119,797
Goldman
Sachs
International
12/16/20
1,178
USD
4,150,000
ZAR
69,732,897
Goldman
Sachs
International
12/17/20
25,196
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
42
Schedule
of
Investments
(continued)
September
30,
2020
Forward
Foreign
Currency
Exchange
Contracts
(continued)
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
ZAR
17,667,428
USD
1,040,000
Bank
of
America
NA
12/17/20
$
5,055
2,661,396
BRL
2,287,530
USD
420,000
Barclays
Bank
plc
10/02/20
(12,669)
BRL
4,525,080
USD
840,000
BNP
Paribas
SA
10/02/20
(34,238)
EUR
23,333,500
USD
27,384,196
Goldman
Sachs
International
10/05/20
(25,131)
USD
357,251
EUR
305,000
Bank
of
America
NA
10/05/20
(368)
USD
428,955
EUR
368,000
Goldman
Sachs
International
10/05/20
(2,534)
USD
1,598,154
EUR
1,364,000
Royal
Bank
of
Scotland
10/05/20
(1,167)
KZT
109,057,950
USD
257,000
Citibank
NA
10/23/20
(6,800)
BRL
22,859,860
USD
4,150,000
Citibank
NA
11/03/20
(82,926)
BRL
6,956,928
USD
1,280,000
Goldman
Sachs
International
11/03/20
(42,269)
USD
931,720
AUD
1,308,000
Bank
of
America
NA
11/04/20
(5,208)
USD
27,340,445
EUR
23,333,500
UBS
AG
11/04/20
(36,120)
IDR
21,728,500,000
USD
1,466,358
BNP
Paribas
SA
12/04/20
(14,590)
IDR
21,728,500,000
USD
1,471,124
Citibank
NA
12/04/20
(19,356)
RUB
27,274,968
USD
354,561
Bank
of
America
NA
12/04/20
(5,613)
RUB
239,080,867
USD
3,109,821
Credit
Suisse
International
12/04/20
(51,090)
RUB
54,467,974
USD
710,520
HSBC
Bank
plc
12/04/20
(13,672)
USD
3,939,897
CNY
27,092,000
Barclays
Bank
plc
12/04/20
(35,622)
USD
25,913,317
CNY
178,110,000
Citibank
NA
12/04/20
(222,801)
USD
853,567
CNY
5,864,000
HSBC
Bank
plc
12/04/20
(6,925)
USD
8,941,850
IDR
135,361,728,789
Standard
Chartered
Bank
12/04/20
(102,208)
BRL
5,452,940
USD
1,010,000
BNP
Paribas
SA
12/16/20
(41,114)
COP
3,144,170,400
USD
840,000
Citibank
NA
12/16/20
(21,720)
EUR
2,860,000
USD
3,384,801
Westpac
Banking
Corp.
12/16/20
(25,689)
KRW
755,536,275
USD
650,000
UBS
AG
12/16/20
(1,955)
MXN
67,606,749
USD
3,160,000
Citibank
NA
12/16/20
(129,148)
MXN
135,386,138
USD
6,260,000
Goldman
Sachs
International
12/16/20
(190,556)
PLN
4,774,417
USD
1,270,000
Goldman
Sachs
International
12/16/20
(34,559)
RUB
157,663,413
USD
2,070,000
BNP
Paribas
SA
12/16/20
(56,345)
RUB
79,914,450
USD
1,050,000
Citibank
NA
12/16/20
(29,344)
RUB
95,892,765
USD
1,260,000
HSBC
Bank
plc
12/16/20
(35,271)
TRY
17,907,120
USD
2,310,000
JPMorgan
Chase
Bank
NA
12/16/20
(43,324)
USD
54,706,836
CNY
376,125,907
Standard
Chartered
Bank
12/16/20
(442,433)
USD
1,247,087
EUR
1,070,000
JPMorgan
Chase
Bank
NA
12/16/20
(9,644)
USD
1,680,000
MXN
37,822,534
Citibank
NA
12/16/20
(15,608)
USD
1,890,000
MXN
42,526,981
State
Street
Bank
and
Trust
Co.
12/16/20
(16,511)
USD
420,000
RUB
33,160,293
Goldman
Sachs
International
12/16/20
(3,519)
USD
830,000
TWD
24,039,903
UBS
AG
12/16/20
(9,797)
ZAR
17,014,897
USD
1,010,000
Bank
of
America
NA
12/17/20
(3,544)
(1,831,388)
OTC
Barrier
Options
Purchased
Description
Type
of
Option
Counterparty
Expiration  
Date
Exercise
Price
Barrier
Price/Range
Notional
Amount
(000)
Value
Call
USD
Currency
...............
Down
and
In
BNP
Paribas
SA
11/02/20
ZAR
16.58
ZAR
15.68
USD
9,337
$
2,969
USD
Currency
...............
Down
and
In
Bank
of
America
NA
11/02/20
ZAR
17.03
ZAR
16.13
USD
10,603
12,506
USD
Currency
...............
Down
and
In
Morgan
Stanley
&
Co.
International
plc
11/02/20
MXN
21.40
MXN
20.40
USD
19,940
3,601
$
19,076
$
–
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
43
Schedule
of
Investments
(continued)
September
30,
2020
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
90-day
Eurodollar
December
2020
Futures
..........
12,148
12/11/20
USD
99.63
USD
3,037,000
$
607,400
90-day
Eurodollar
June
2021
Futures
..............
4,690
06/11/21
USD
99.25
USD
1,172,500
879,375
$
1,486,775
OTC
Currency
Options
Purchased
Description
Counterparty
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
AUD
Currency
...........................
Morgan
Stanley
&
Co.
International
plc
10/14/20
JPY
72.40
AUD
23,316
$
11,071
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
90-day
Eurodollar
June
2021
Futures
...............
4,690
06/11/21
USD
98.75
USD
1,172,500
$
(175,875)
Centrally
Cleared
Interest
Rate
Swap
s
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)
28
day
MXIBTIIE
Monthly
4.51%
Monthly
10/01/20
(a)
09/29/22
MXN
292,103
$
—
$
—
$
—
1
day
Fed
Funds
At
Termination
0.04%
At
Termination
09/19/22
(a)
09/19/23
USD
207,920
(43,437)
—
(43,437)
1
day
Fed
Funds
At
Termination
0.05%
At
Termination
09/19/22
(a)
09/19/23
USD
415,841
(33,399)
—
(33,399)
1
day
Fed
Funds
At
Termination
0.04%
At
Termination
09/23/22
(a)
09/23/23
USD
208,521
(40,583)
—
(40,583)
28
day
MXIBTIIE
Monthly
6.67%
Monthly
N/A
08/12/24
MXN
27,583
82,354
—
82,354
28
day
MXIBTIIE
Monthly
6.72%
Monthly
N/A
08/13/24
MXN
23,733
72,584
—
72,584
28
day
MXIBTIIE
Monthly
6.59%
Monthly
N/A
11/08/24
MXN
35,449
103,532
—
103,532
28
day
MXIBTIIE
Monthly
6.58%
Monthly
N/A
01/06/25
MXN
112,180
330,141
—
330,141
3
month
BA
Semi-Annual
0.75%
Semi-Annual
N/A
05/26/25
CAD
25,605
29,569
—
29,569
3
month
BA
Semi-Annual
0.85%
Semi-Annual
N/A
06/04/25
CAD
14,482
68,018
—
68,018
3
month
BA
Semi-Annual
0.85%
Semi-Annual
N/A
06/04/25
CAD
14,483
69,106
(99)
69,205
3
month
BA
Semi-Annual
0.70%
Semi-Annual
N/A
08/06/25
CAD
55,310
(75,586)
—
(75,586)
0.39%
At
Termination
1
day
Fed
Funds
At
Termination
09/18/24
(a)
09/18/25
USD
415,841
(19,454)
—
(19,454)
0.38%
At
Termination
1
day
Fed
Funds
At
Termination
09/18/24
(a)
09/18/25
USD
207,920
21,044
—
21,044
0.39%
At
Termination
1
day
Fed
Funds
At
Termination
09/23/24
(a)
09/23/25
USD
208,521
(2,673)
—
(2,673)
2.91%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/23/26
USD
844
(125,860)
—
(125,860)
2.93%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/24/28
USD
1,870
(349,828)
—
(349,828)
3.16%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
10/03/28
USD
1,035
(226,787)
—
(226,787)
$
(141,259)
$
(99)
$
(141,160)
(a)
Forward
swap.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
44
Schedule
of
Investments
(continued)
September
30,
2020
Centrally
Cleared
Inflation
Swap
s
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
0.72%
At
Termination
1
month
HICPXT
At
Termination
09/15/25
EUR
14,610
$
(106,501)
$
—
$
(106,501)
0.73%
At
Termination
1
month
HICPXT
At
Termination
09/15/25
EUR
14,610
(115,588)
—
(115,588)
1
month
HICPXT
At
Termination
0.96%
At
Termination
09/15/30
EUR
14,610
173,999
—
173,999
1
month
HICPXT
At
Termination
0.98%
At
Termination
09/15/30
EUR
14,610
203,817
—
203,817
$
155,727
$
—
$
155,727
OTC
Credit
Default
Swap
s
—
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
Chile
..........
1.00
%
Quarterly
Citibank
NA
12/20/25
USD
1,076
$
(18,004)
$
(14,785)
$
(3,219)
Republic
of
Colombia
.......
1.00
Quarterly
Barclays
Bank
plc
12/20/25
USD
460
11,274
7,900
3,374
Republic
of
Colombia
.......
1.00
Quarterly
Barclays
Bank
plc
12/20/25
USD
470
11,519
8,537
2,982
Republic
of
Colombia
.......
1.00
Quarterly
Citibank
NA
12/20/25
USD
9,470
232,104
183,622
48,482
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
12/20/25
USD
1,690
41,421
31,478
9,943
Republic
of
Colombia
.......
1.00
Quarterly
Goldman
Sachs
International
12/20/25
USD
682
16,715
15,666
1,049
Republic
of
Colombia
.......
1.00
Quarterly
Morgan
Stanley
&
Co.
International
plc
12/20/25
USD
410
10,049
7,608
2,441
Republic
of
Colombia
.......
1.00
Quarterly
Morgan
Stanley
&
Co.
International
plc
12/20/25
USD
280
6,863
4,951
1,912
Republic
of
Indonesia
.......
1.00
Quarterly
Citibank
NA
12/20/25
USD
690
5,272
1,282
3,990
Republic
of
Indonesia
.......
1.00
Quarterly
Citibank
NA
12/20/25
USD
710
5,425
1,675
3,750
Republic
of
Indonesia
.......
1.00
Quarterly
JPMorgan
Chase
Bank
NA
12/20/25
USD
902
6,892
1,814
5,078
Russian
Federation
........
1.00
Quarterly
Bank
of
America
NA
12/20/25
USD
2,302
28,963
17,720
11,243
Russian
Federation
........
1.00
Quarterly
Bank
of
America
NA
12/20/25
USD
1,749
22,004
16,825
5,179
Russian
Federation
........
1.00
Quarterly
Bank
of
America
NA
12/20/25
USD
1,936
24,363
14,074
10,289
Russian
Federation
........
1.00
Quarterly
Citibank
NA
12/20/25
USD
787
9,898
5,263
4,635
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
12/20/25
USD
770
19,033
13,129
5,904
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
12/20/25
USD
6,505
160,786
120,256
40,530
United
Mexican
States
......
1.00
Quarterly
Barclays
Bank
plc
12/20/25
USD
760
18,786
11,827
6,959
United
Mexican
States
......
1.00
Quarterly
Morgan
Stanley
&
Co.
International
plc
12/20/25
USD
772
19,082
13,354
5,728
CMBX.NA.9.AAA
..........
0.50
Monthly
Credit
Suisse
International
09/17/58
USD
1,280
(10,228)
15,707
(25,935)
CMBX.NA.9.AAA
..........
0.50
Monthly
Deutsche
Bank
AG
09/17/58
USD
1,030
(8,230)
12,807
(21,037)
CMBX.NA.9.AAA
..........
0.50
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
1,570
(12,545)
20,747
(33,292)
CMBX.NA.9.AAA
..........
0.50
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
860
(6,872)
10,553
(17,425)
CMBX.NA.9.AAA
..........
0.50
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
720
(5,753)
8,835
(14,588)
CMBX.NA.9.BBB-
.........
3.00
Monthly
Citigroup
Global
Markets,
Inc.
09/17/58
USD
440
115,638
14,746
100,892
CMBX.NA.9.BBB-
.........
3.00
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
USD
288
75,690
15,777
59,913
CMBX.NA.6.AAA
..........
0.50
Monthly
Deutsche
Bank
AG
05/11/63
USD
1,769
(8,092)
(1,331)
(6,761)
CMBX.NA.6.AAA
..........
0.50
Monthly
Deutsche
Bank
AG
05/11/63
USD
757
(3,464)
(111)
(3,353)
CMBX.NA.6.BBB-
.........
3.00
Monthly
JPMorgan
Securities
LLC
05/11/63
USD
270
90,055
24,630
65,425
CMBX.NA.6.BBB-
.........
3.00
Monthly
JPMorgan
Securities
LLC
05/11/63
USD
10
3,335
586
2,749
$
–
$
–
$
–
$
861,979
$
585,142
$
276,837
$
–
$
–
$
–
OTC
Credit
Default
Swap
s
—
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)
CMBX.NA.3.AM
.......
0.50
%
Monthly
Credit
Suisse
International
12/13/49
NR
USD
—
$
—
$
(5)
$
5
CMBX.NA.3.AM
.......
0.50
Monthly
Goldman
Sachs
International
12/13/49
A
USD
—
—
(13)
13
CMBX.NA.3.AM
.......
0.50
Monthly
JPMorgan
Chase
Bank
NA
12/13/49
AA
USD
1
—
(60)
60
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
45
Schedule
of
Investments
(continued)
September
30,
2020
i
OTC
Credit
Default
Swaps
—
Sell
Protection
(continued)
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)
CMBX.NA.9.BBB-
.....
3.00
%
Monthly
Deutsche
Bank
AG
09/17/58
NR
USD
531
$
(139,554)
$
(60,659)
$
(78,895)
CMBX.NA.9.BBB-
.....
3.00
Monthly
Deutsche
Bank
AG
09/17/58
NR
USD
352
(92,512)
(35,656)
(56,856)
CMBX.NA.9.BBB-
.....
3.00
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
NR
USD
207
(54,402)
(24,057)
(30,345)
CMBX.NA.9.BBB-
.....
3.00
Monthly
Morgan
Stanley
&
Co.
International
plc
09/17/58
NR
USD
240
(63,075)
251
(63,326)
CMBX.NA.10.A
.......
2.00
Monthly
Deutsche
Bank
AG
11/17/59
A-
USD
4,050
(330,745)
(165,908)
(164,837)
CMBX.NA.10.A
.......
2.00
Monthly
Deutsche
Bank
AG
11/17/59
A-
USD
2,020
(164,964)
(84,168)
(80,796)
CMBX.NA.10.BBB-
....
3.00
Monthly
JPMorgan
Securities
LLC
11/17/59
BBB-
USD
35
(8,571)
—
(8,571)
CMBX.NA.6.BBB-
.....
3.00
Monthly
Credit
Suisse
International
05/11/63
BBB
USD
280
(93,390)
(21,127)
(72,263)
$
(947,213)
$
(391,402)
$
(555,811)
(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
Rate
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
3.27%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
05/16/21
USD
8,580
$
(263,468)
$
—
$
(263,468)
1
day
BZDIOVER
At
Termination
3.10%
At
Termination
Citibank
NA
01/03/22
BRL
44,480
9,053
—
9,053
1
day
BZDIOVER
At
Termination
4.52%
At
Termination
BNP
Paribas
SA
01/02/23
BRL
48,805
13,107
—
13,107
1
day
BZDIOVER
At
Termination
5.13%
At
Termination
JPMorgan
Chase
Bank
NA
01/02/23
BRL
13,280
59,425
—
59,425
28
day
MXIBTIIE
Monthly
6.43%
Monthly
Bank
of
America
NA
06/06/25
MXN
6,011
16,686
—
16,686
28
day
MXIBTIIE
Monthly
6.33%
Monthly
Citibank
NA
06/09/25
MXN
3,006
7,769
—
7,769
$
(157,428)
$
—
$
(157,428)
OTC
Inflation
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Reference
Frequency
Rate
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid  (Received)
Unrealized
Appreciation
(Depreciation)
1
month
USCPI
At
Termination
(0.96)%
At
Termination
Citibank
NA
04/15/21
USD
23,134
$
(390,096)
$
—
$
(390,096)
1
month
USCPI
At
Termination
(1.00)%
At
Termination
Citibank
NA
04/15/21
USD
30,122
(518,626)
—
(518,626)
1
month
USCPI
At
Termination
(1.00)%
At
Termination
Citibank
NA
04/15/21
USD
30,122
(518,626)
—
(518,626)
1
month
USCPI
At
Termination
(1.02)%
At
Termination
Citibank
NA
04/15/21
USD
30,122
(524,146)
—
(524,146)
0.04%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
23,134
476,277
—
476,277
0.02%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
30,122
632,845
—
632,845
0.01%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
30,122
637,461
—
637,461
0.00%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/22
USD
30,122
644,384
—
644,384
1
month
USCPI
At
Termination
(0.05)%
At
Termination
Citibank
NA
04/15/22
USD
42,563
(951,280)
—
(951,280)
0.62%
At
Termination
1
month
USCPI
At
Termination
Citibank
NA
04/15/24
USD
42,563
1,409,505
—
1,409,505
–
$
–
$
–
$
897,698
$
—
$
897,698
–
–
–
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
46
Schedule
of
Investments
(continued)
September
30,
2020
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
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
0.01
%
1
day
Fed
Funds
......................................
1
day
Fed
Funds
0.09
1
month
HICPXT
......................................
Harmonized
Index
Of
Consumer
Prices
Excluding
Tobacco
0.00
1
month
USCPI
.......................................
U.S.
Consumer
Price
Index
2.06
28
day
MXIBTIIE
......................................
Mexico
Interbank
TIIE
28-Day
4.55
3
month
BA
..........................................
Canadian
Bankers
Acceptances
0.51
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.23
Balances
Reported
in
the
Statements
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)
...........................................
$
—
$
(99)
$
1,154,263
$
(1,139,696)
$
—
OTC
Swaps
.....................................................
601,620
(407,880)
4,309,037
(3,847,741)
—
Options
Written
...................................................
N/A
N/A
205,800
—
(175,875)
(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
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
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)
.....
$
—
$
—
$
—
$
—
$
434,448
$
—
$
434,448
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
2,661,396
—
—
2,661,396
Options
purchased
Investments
at
value
—
unaffiliated
(b)
...........
—
—
—
30,147
1,486,775
—
1,516,922
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
776,447
377,816
1,154,263
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
1,004,145
—
—
106,040
3,800,472
4,910,657
$
—
$
1,004,145
$
—
$
2,691,543
$
2,803,710
$
4,178,288
$
10,677,686
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
1,268,628
—
1,268,628
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
1,831,388
—
—
1,831,388
Options
written
Options
written
at
value
.....................
—
—
—
—
175,875
—
175,875
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
917,607
222,089
1,139,696
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
1,089,379
—
—
263,468
2,902,774
4,255,621
$
—
$
1,089,379
$
—
$
1,831,388
$
2,625,578
$
3,124,863
$
8,671,208
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
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.
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
47
Schedule
of
Investments
(continued)
September
30,
2020
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
For
the
year
ended
September
30,
2020,
the
effect
of
derivative
financial
instruments
in
the
Statements
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
.......................
$
—
$
—
$
—
$
—
$
46,212,767
$
—
$
46,212,767
Forward
foreign
currency
exchange
contracts
....
—
—
—
(1,673,545)
—
—
(1,673,545)
Options
purchased
(a)
....................
—
—
—
(701,713)
(1,721,377)
—
(2,423,090)
Options
written
........................
—
—
—
—
1,356,440
—
1,356,440
Swaps
..............................
—
1,751,481
—
—
4,459,625
971,732
7,182,838
$
—
$
1,751,481
$
—
$
(2,375,258)
$
50,307,455
$
971,732
$
50,655,410
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
572,275
—
572,275
Forward
foreign
currency
exchange
contracts
....
—
—
—
(2,454,094)
—
—
(2,454,094)
Options
purchased
(b)
....................
—
—
—
(233,776)
(1,495,244)
—
(1,729,020)
Options
written
........................
—
—
—
—
205,800
—
205,800
Swaps
..............................
—
(493,389)
—
—
(248,464)
1,016,043
274,190
$
—
$
(493,389)
$
—
$
(2,687,870)
$
(965,633)
$
1,016,043
$
(3,130,849)
(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
..................................................................................
$
680,693,306
Average
notional
value
of
contracts
—
short
.................................................................................
277,765,934
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
195,037,958
Average
amounts
sold
—
in
USD
........................................................................................
88,959,204
Options:
Average
value
of
option
contracts
purchased
................................................................................
417,723
Average
value
of
option
contracts
written
...................................................................................
67,417
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
26,119,500
Average
notional
value
of
swaption
contracts
written
...........................................................................
44,550,750
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
41,889,044
Average
notional
value
—
sell
protection
...................................................................................
9,519,232
Interest
rate
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
703,894,529
Average
notional
value
—
receives
fixed
rate
................................................................................
792,298,319
Inflation
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
86,596,247
Average
notional
value
—
receives
fixed
rate
................................................................................
86,596,247
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
987,743
$
1,626,786
Forward
foreign
currency
exchange
contracts
.................................................................
2,661,396
1,831,388
Options
(a)
.........................................................................................
1,516,922
175,875
Swaps
—
Centrally
cleared
.............................................................................
37,128
—
Swaps
—
OTC
(b)
....................................................................................
4,910,657
4,255,621
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
10,113,846
$
7,889,670
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(2,511,646)
(1,802,661)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
7,602,200
$
6,087,009
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
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
Statements
of
Assets
and
Liabilities.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Core
Bond
Portfolio
48
Schedule
of
Investments
(continued)
September
30,
2020
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
(b)
Cash
Collateral
Received
(b)
Net
Amount
of
Derivative
Assets
(c)(d)
Bank
of
America
NA
..............................
$
171,558
$
(14,733)
$
—
$
—
$
156,825
Barclays
Bank
plc
................................
384,458
(48,291)
(336,167)
—
—
BNP
Paribas
SA
.................................
210,786
(146,287)
—
—
64,499
Citibank
NA
....................................
4,570,172
(3,448,481)
—
(1,121,691)
—
Citigroup
Global
Markets,
Inc.
........................
115,638
—
—
—
115,638
Credit
Suisse
International
..........................
15,712
(15,712)
—
—
—
Deutsche
Bank
AG
...............................
54,992
(54,992)
—
—
—
Goldman
Sachs
International
........................
168,879
(168,879)
—
—
—
HSBC
Bank
plc
..................................
16,529
(16,529)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
139,119
(53,028)
—
(86,091)
—
JPMorgan
Securities
LLC
...........................
93,390
(8,571)
—
—
84,819
Morgan
Stanley
&
Co.
International
plc
..................
212,495
(183,033)
—
—
29,462
State
Street
Bank
and
Trust
.........................
319,428
(16,511)
—
—
302,917
UBS
AG
......................................
1,108,705
(47,872)
—
—
1,060,833
Westpac
Banking
Corp.
............................
20,339
(20,339)
—
—
—
$
7,602,200
$
(4,243,258)
$
(336,167)
$
(1,207,782)
$
1,814,993
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
(e)
Net
Amount
of
Derivative
Liabilities
(d)(f)
Bank
of
America
NA
..............................
$
14,733
$
(14,733)
$
—
$
—
$
—
Barclays
Bank
plc
................................
48,291
(48,291)
—
—
—
BNP
Paribas
SA
.................................
146,287
(146,287)
—
—
—
Citibank
NA
....................................
3,448,481
(3,448,481)
—
—
—
Credit
Suisse
International
..........................
170,420
(15,712)
—
—
154,708
Deutsche
Bank
AG
...............................
1,023,836
(54,992)
—
(968,844)
—
Goldman
Sachs
International
........................
298,581
(168,879)
—
—
129,702
HSBC
Bank
plc
..................................
55,868
(16,529)
—
—
39,339
JPMorgan
Chase
Bank
NA
..........................
53,028
(53,028)
—
—
—
JPMorgan
Securities
LLC
...........................
8,571
(8,571)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
183,033
(183,033)
—
—
—
Royal
Bank
of
Scotland
............................
1,167
—
—
—
1,167
Standard
Chartered
Bank
...........................
544,641
—
—
—
544,641
State
Street
Bank
and
Trust
.........................
16,511
(16,511)
—
—
—
UBS
AG
......................................
47,872
(47,872)
—
—
—
Westpac
Banking
Corp.
............................
25,689
(20,339)
—
—
5,350
$
6,087,009
$
(4,243,258)
$
—
$
(968,844)
$
874,907
(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)
Excess
of
collateral
received
from
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(d)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(e)
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(f)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
BlackRock
Core
Bond
Portfolio
Schedules
of
Investments
49
Schedule
of
Investments
(continued)
September
30,
2020
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Pe
riod
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
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.
The
breakdown
of
the
Fund's
investments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
....................................
$
—
$
290,975,960
$
3,956,273
$
294,932,233
Corporate
Bonds
........................................
—
1,555,060,759
—
1,555,060,759
Foreign
Agency
Obligations
.................................
—
9,455,439
—
9,455,439
Foreign
Government
Obligations
..............................
—
227,610,749
—
227,610,749
Municipal
Bonds
.........................................
—
113,352,487
—
113,352,487
Non-Agency
Mortgage-Backed
Securities
........................
—
162,342,466
1,882,522
164,224,988
Capital
Trusts
...........................................
—
12,036,482
—
12,036,482
U.S.
Government
Sponsored
Agency
Securities
....................
—
1,447,099,924
—
1,447,099,924
U.S.
Treasury
Obligations
...................................
—
683,350,172
—
683,350,172
Short-Term
Securities
.......................................
364,373,640
—
—
364,373,640
Options
Purchased:
Foreign
currency
exchange
contracts
...........................
—
30,147
—
30,147
Interest
rate
contracts
......................................
1,486,775
—
—
1,486,775
Liabilities:
Investments:
TBA
Sale
Commitments
....................................
—
(241,226,024)
—
(241,226,024)
$
365,860,415
$
4,260,088,561
$
5,838,795
$
4,631,787,771
Derivative
Financial
Instruments
(a)
Assets:
Credit
contracts
...........................................
$
—
$
402,525
$
—
$
402,525
Foreign
currency
exchange
contracts
............................
—
2,661,396
—
2,661,396
Interest
rate
contracts
.......................................
434,448
882,487
—
1,316,935
Other
contracts
...........................................
—
4,178,288
—
4,178,288
Liabilities:
Credit
contracts
...........................................
—
(681,499)
—
(681,499)
Foreign
currency
exchange
contracts
............................
—
(1,831,388)
—
(1,831,388)
Interest
rate
contracts
.......................................
(1,444,503)
(1,181,075)
—
(2,625,578)
Other
contracts
...........................................
—
(3,124,863)
—
(3,124,863)
$
(1,010,055)
$
1,305,871
$
—
$
295,816
(a)
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.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
50
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
—
0.1%
ALM
VII
R
Ltd.,
Series
2013-7RA,
Class
BR,
(LIBOR
USD
3
Month
+
2.70%),
2.98%,
10/15/28
(a)(b)
.....................
USD
1,000
$
990,986
Anchorage
Capital
Europe
CLO
2
DAC,
Series
2X,
Class
E,
(EURIBOR
3
Month
+
5.66%),
5.66%,
05/15/31
(a)
.................
EUR
1,561
1,719,547
Aqueduct
European
CLO
DAC,
Series
2017-2X,
Class
E,
(EURIBOR
3
Month
+
4.40%),
4.40%,
10/15/30
(a)
.................
884
924,899
Arbour
CLO
IV
DAC,
Series
4X,
Class
E,
(EURIBOR
3
Month
+
5.60%),
5.60%,
01/15/30
(a)
......................
917
1,025,397
Ares
XLVI
CLO
Ltd.,
Series
2017-46A,
Class
SUB,
(LIBOR
USD
3
Month
+
0.00%),
0.00%,
01/15/30
(a)(b)
................
USD
2,000
1,194,376
Atrium
VIII,
Series
8A,
Class
SUB,
0.00%,
10/23/24
(b)(c)
.....................
11,500
361,100
Avoca
Capital
CLO
X
Ltd.,
Series
10X,
Class
ER,
(EURIBOR
3
Month
+
6.05%),
6.05%,
01/15/30
(a)
......................
EUR
800
899,875
Avoca
CLO
XV
DAC,
Series
15X,
Class
ER,
(EURIBOR
3
Month
+
4.13%),
4.13%,
04/15/31
(a)
......................
620
632,361
Avoca
CLO
XVIII
DAC,
Series
18X,
Class
E,
(EURIBOR
3
Month
+
4.60%),
4.60%,
04/15/31
(a)
......................
700
725,364
Bilbao
CLO
I
DAC,
Series
1X,
Class
D,
(EURIBOR
3
Month
+
4.73%),
4.73%,
07/20/31
(a)
......................
400
424,699
Carlyle
Global
Market
Strategies
CLO
Ltd.,
Series
2015-4A,
Class
SBB1,
(LIBOR
USD
3
Month
+
8.50%),
8.77%,
07/20/32
(a)(b)
....
USD
1,403
1,227,734
CIFC
Funding
Ltd.,
Series
2014-4RA,
Class
B,
(LIBOR
USD
3
Month
+
2.20%),
2.47%,
10/17/30
(a)(b)
.....................
850
818,134
Galaxy
XVIII
CLO
Ltd.,
Series
2018-28A,
Class
C,
(LIBOR
USD
3
Month
+
1.95%),
2.23%,
07/15/31
(a)(b)
.....................
250
239,812
Greene
King
Finance
plc,
Series
B1,  (LIBOR
GBP
3
Month
+
1.80%),
1.86%,
12/15/34
(a)
GBP
100
112,326
Harvest
CLO
XVI
DAC,
Series
16X,
Class
ER,
(EURIBOR
3
Month
+
5.57%),
5.57%,
10/15/31
(a)
......................
EUR
1,125
1,225,862
Harvest
CLO
XXIII
DAC,
Series
23X,
Class
E,
(EURIBOR
3
Month
+
5.33%),
5.33%,
10/20/32
(a)
......................
148
152,298
Invesco
Euro
CLO
III
DAC,
Series
3X,
Class
F,
(EURIBOR
3
Month
+
8.07%),
8.07%,
07/15/32
(a)
......................
294
328,462
Jamestown
CLO
IV
Ltd.,
Series
2014-4A,
Class
SUB,
0.00%,
07/15/26
(b)(c)
............
USD
2,000
15,620
OCP
Euro
CLO
DAC
(a)
:
Series
2017-2X,
Class
E,
(EURIBOR
3
Month
+
5.00%),
5.00%,
01/15/32
....
EUR
1,347
1,476,269
Series
2017-2X,
Class
F,
(EURIBOR
3
Month
+
6.40%),
6.40%,
01/15/32
....
900
896,740
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
Series
2019-3X,
Class
E,
(EURIBOR
3
Month
+
5.75%),
5.75%,
04/20/30
....
EUR
300
$
331,620
OZLME
BV,
Series
1X,
Class
ER,
(EURIBOR
3
Month
+
5.90%),
5.90%,
01/18/30
(a)
.....
990
1,112,914
OZLME
II
DAC,
Series
2X,
Class
E,
(EURIBOR
3
Month
+
4.90%),
4.90%,
10/15/30
(a)
....
807
842,522
OZLME
III
DAC,
Series
3X,
Class
E,
(EURIBOR
3
Month
+
4.80%),
4.80%,
08/24/30
(a)
....
1,000
1,007,734
Rockford
Tower
Europe
CLO
DAC,
Series
2018-1X,
Class
E,
(EURIBOR
3
Month
+
5.36%),
5.36%,
12/20/31
(a)
...........
300
319,508
Seneca
Park
CLO
Ltd.,
Series
2014-1A,
Class
SUB,
0.00%,
07/17/26
(b)(c)
............
USD
2,500
30,725
Total
Asset-Backed
Securities
—
0.1%
(Cost:
$32,922,783)
...............................
19,036,884
Shares
Common
Stocks
—
1.0%
Auto
Components
—
0.0%
Lear
Corp.
........................
2,756
300,506
Building
Products
—
0.0%
AZEK
Co.,
Inc.
(The)
(d)
................
14,842
516,650
Chemicals
—
0.2%
Element
Solutions,
Inc.
(d)
...............
5,675,453
59,649,011
Commercial
Services
&
Supplies
—
0.0%
FreedomPay,
Inc.
(d)(e)
.................
314,534
3
Consumer
Finance
—
0.0%
Arrow
Global
Group
plc
................
286,606
469,673
Diversified
Financial
Services
—
0.1%
(d)
Adelphia
Recovery
Trust
...............
1,339,784
903
Adelphia
Recovery
Trust
(e)
..............
130,590
1
Remainco
LLC
(e)
....................
1,260,653
12,694,776
12,695,680
Diversified
Telecommunication
Services
—
0.1%
Altice
Europe
NV
(d)
...................
2,674,678
12,734,467
CenturyLink,
Inc.
....................
1,182,548
11,931,909
Telecom
Italia
SpA
...................
1,512,681
610,780
25,277,156
Energy
Equipment
&
Services
—
0.0%
Pioneer
Energy
Services
Corp.
(d)(e)
........
43,326
1,682,479
Entertainment
—
0.1%
Live
Nation
Entertainment,
Inc.
(d)(f)
.........
205,113
11,051,488
Equity
Real
Estate
Investment
Trusts
(REITs)
—
0.3%
Gaming
and
Leisure
Properties,
Inc.
(f)
......
952,354
35,170,433
VICI
Properties,
Inc.
..................
2,100,289
49,083,754
84,254,187
Life
Sciences
Tools
&
Services
—
0.0%
PPD,
Inc.
(d)
........................
66,112
2,445,483
Media
—
0.0%
Clear
Channel
Outdoor
Holdings,
Inc.
(d)
.....
4,744,023
4,744,023
Metals
&
Mining
—
0.1%
Constellium
SE,
Class
A
(d)
..............
3,222,337
25,295,346
Oil,
Gas
&
Consumable
Fuels
—
0.0%
(d)(e)
KCAD
Holdings
I
Ltd.
.................
4,067,849,248
40,678
Osum
Oil
Sands
Corp.
(g)
...............
1,600,000
1,622,170
1,662,848
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
51
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Shares
Value
Pharmaceuticals
—
0.1%
Bausch
Health
Cos.,
Inc.
(d)(f)
.............
1,598,134
$
24,835,002
Semiconductors
&
Semiconductor
Equipment
—
0.0%
(d)
Maxeon
Solar
Technologies
Ltd.
..........
171
2,900
SunPower
Corp.
....................
1,369
17,126
20,026
Total
Common
Stocks
—
1.0%
(Cost:
$332,730,776)
..............................
254,899,561
Par
(000)
Corporate
Bonds
—
82.8%
Aerospace
&
Defense
—
3.6%
Boeing
Co.
(The):
5.15%,
05/01/30
..................
USD
49,450
55,582,232
5.81%,
05/01/50
..................
69,460
84,031,326
5.93%,
05/01/60
..................
70,460
87,204,073
Bombardier,
Inc.
(b)
:
8.75%,
12/01/21
..................
41,209
41,741,420
5.75%,
03/15/22
..................
5,590
5,416,710
6.00%,
10/15/22
..................
4,529
4,200,648
6.13%,
01/15/23
..................
15,790
13,500,450
7.50%,
12/01/24
..................
8,238
6,322,624
7.50%,
03/15/25
..................
4,496
3,372,000
7.88%,
04/15/27
..................
38,721
29,367,555
BWX
Technologies,
Inc.
(b)
:
5.38%,
07/15/26
..................
12,065
12,532,519
4.13%,
06/30/28
..................
14,487
14,812,957
F-Brasile
SpA,
Series
XR,
7.38%,
08/15/26
(b)
.
19,961
16,867,045
Howmet
Aerospace,
Inc.:
5.87%,
02/23/22
..................
6,850
7,245,245
5.13%,
10/01/24
..................
7,706
8,168,360
Kratos
Defense
&
Security
Solutions,
Inc.,
6.50%,
11/30/25
(b)
................
21,326
22,263,491
Rolls-Royce
plc:
0.88%,
05/09/24
..................
EUR
1,100
1,117,273
1.63%,
05/09/28
..................
1,700
1,593,822
Signature
Aviation
US
Holdings,
Inc.
(b)
:
5.38%,
05/01/26
..................
USD
8,861
8,949,610
4.00%,
03/01/28
..................
11,220
10,434,600
Spirit
AeroSystems
Inc.,
5.50%,
01/15/25
(b)
..
12,439
12,501,195
SSL
Robotics
LLC,
9.75%,
12/31/23
(b)
.....
17,258
19,009,342
TransDigm,
Inc.
(b)
:
8.00%,
12/15/25
..................
33,543
36,478,013
6.25%,
03/15/26
..................
321,069
335,290,751
Triumph
Group,
Inc.,
8.88%,
06/01/24
(b)
....
50,912
54,221,280
892,224,541
Air
Freight
&
Logistics
—
0.0%
XPO
Logistics,
Inc.,
6.25%,
05/01/25
(b)
.....
7,079
7,564,726
Airlines
—
0.7%
American
Airlines,
Inc.,
11.75%,
07/15/25
(b)
..
11,613
11,206,545
Delta
Air
Lines,
Inc.
(b)
:
7.00%,
05/01/25
..................
24,092
26,453,606
4.50%,
10/20/25
..................
13,900
14,273,248
4.75%,
10/20/28
..................
41,280
42,860,163
easyJet
plc,
0.88%,
06/11/25
...........
EUR
2,500
2,418,108
International
Consolidated
Airlines
Group
SA,
0.50%,
07/04/23
.................
1,200
1,115,000
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
(b)
USD
60,466
62,960,222
Spirit
Loyalty
Cayman
Ltd.,
8.00%,
09/20/25
(b)
5,503
5,830,789
167,117,681
Security
Par
(000)
Value
Auto
Components
—
1.5%
Adient
US
LLC,
9.00%,
04/15/25
(b)
.......
USD
15,490
$
17,077,725
Allison
Transmission,
Inc.
(b)
:
5.00%,
10/01/24
..................
6,077
6,138,135
5.88%,
06/01/29
..................
28,932
31,289,958
Clarios
Global
LP:
6.75%,
05/15/25
(b)
.................
20,523
21,600,457
4.38%,
05/15/26
..................
EUR
5,988
7,029,406
6.25%,
05/15/26
(b)
.................
USD
64,790
67,935,555
8.50%,
05/15/27
(b)
.................
101,988
105,302,610
Dealer
Tire
LLC,
8.00%,
02/01/28
(b)
.......
14,221
14,505,420
Faurecia
SE:
2.63%,
06/15/25
..................
EUR
2,428
2,799,590
3.75%,
06/15/28
..................
1,679
1,956,673
Goodyear
Europe
BV,
3.75%,
12/15/23
....
1,000
1,145,765
Goodyear
Tire
&
Rubber
Co.
(The),
9.50%,
05/31/25
......................
USD
12,574
13,642,790
Icahn
Enterprises
LP:
6.25%,
02/01/22
..................
618
624,532
6.75%,
02/01/24
..................
1,752
1,797,158
4.75%,
09/15/24
..................
6,704
6,787,800
6.38%,
12/15/25
..................
14,114
14,508,698
6.25%,
05/15/26
..................
16,189
16,877,033
5.25%,
05/15/27
..................
28,803
30,006,965
IHO
Verwaltungs
GmbH:
3.88%,
05/15/27
(h)
.................
EUR
2,911
3,414,231
6.00%,
(6.00%
Cash
or
6.75%
PIK),
05/15/27
(b)(i)
...................
USD
400
422,000
ZF
Europe
Finance
BV:
2.00%,
02/23/26
..................
EUR
1,200
1,283,011
2.50%,
10/23/27
..................
3,800
4,051,151
ZF
Finance
GmbH:
3.00%,
09/21/25
..................
2,100
2,394,367
3.75%,
09/21/28
..................
2,800
3,176,167
375,767,197
Automobiles
—
0.8%
Fiat
Chrysler
Automobiles
NV:
3.88%,
01/05/26
..................
675
855,661
4.50%,
07/07/28
..................
1,825
2,433,933
Ford
Motor
Co.:
8.50%,
04/21/23
..................
USD
17,001
18,531,090
4.35%,
12/08/26
..................
3,011
2,972,038
4.75%,
01/15/43
..................
7,441
6,737,267
5.29%,
12/08/46
..................
4,727
4,434,517
General
Motors
Co.:
6.80%,
10/01/27
..................
33,571
40,887,547
5.00%,
10/01/28
..................
3,205
3,603,909
5.00%,
04/01/35
..................
6,675
7,231,411
6.25%,
10/02/43
..................
10,365
12,283,184
5.20%,
04/01/45
..................
10,008
10,780,266
5.95%,
04/01/49
..................
27,278
31,962,609
Jaguar
Land
Rover
Automotive
plc,
4.50%,
01/15/26
......................
EUR
1,300
1,265,607
Nissan
Motor
Co.
Ltd.:
3.20%,
09/17/28
..................
1,750
2,067,944
4.81%,
09/17/30
(b)
.................
USD
22,442
22,576,759
RCI
Banque
SA,
(EUR
Swap
Annual
5
Year
+
2.85%),
2.63%,
02/18/30
(a)
...........
EUR
1,700
1,894,846
Renault
SA,
1.25%,
06/24/25
...........
1,200
1,293,757
Tesla,
Inc.,
5.30%,
08/15/25
(b)
..........
USD
27,273
28,227,555
Volvo
Car
AB,
2.50%,
10/07/27
.........
EUR
1,051
1,232,245
Winnebago
Industries,
Inc.,
6.25%,
07/15/28
(b)
USD
9,309
9,820,995
211,093,140
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
52
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Banks
—
0.7%
ABN
AMRO
Bank
NV,
(EUR
Swap
Annual
5
Year
+
4.67%),
4.37%
(a)(j)
............
EUR
700
$
818,030
AIB
Group
plc
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
5.70%),
5.25%
1,750
1,948,968
(EUR
Swap
Annual
5
Year
+
6.63%),
6.25%
3,975
4,648,838
Allied
Irish
Banks
plc,
(EUR
Swap
Annual
5
Year
+
7.34%),
7.37%
(a)(j)
............
1,444
1,697,352
Banco
Bilbao
Vizcaya
Argentaria
SA
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
9.18%),
8.87%
1,400
1,694,612
(EUR
Swap
Annual
5
Year
+
5.66%),
5.87%
400
461,359
Banco
BPM
SpA,
2.50%,
06/21/24
.......
1,103
1,320,491
Banco
de
Sabadell
SA
(a)
:
(EUR
Swap
Annual
5
Year
+
6.41%),
6.50%
(j)
......................
1,800
1,885,904
(EUR
Swap
Annual
5
Year
+
2.20%),
2.00%,
01/17/30
.....................
2,300
2,336,311
Banco
Espirito
Santo
SA
(d)(k)
:
2.63%,
05/08/17
..................
10,400
1,585,152
4.75%,
01/15/18
..................
12,300
1,874,748
4.00%,
01/21/19
..................
12,000
1,829,022
Banco
Santander
SA
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
6.80%),
6.75%
1,900
2,324,277
(EUR
Swap
Annual
5
Year
+
4.53%),
4.37%
2,200
2,327,900
Bank
of
Ireland
Group
plc,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.50%),
4.12%,
09/19/27
(a)
.........
USD
2,285
2,271,665
Bankia
SA
(a)
:
(EUR
Swap
Annual
5
Year
+
5.82%),
6.00%
(j)
......................
EUR
600
708,746
(EUR
Swap
Annual
5
Year
+
6.22%),
6.37%
(j)
......................
3,000
3,593,008
(EUR
Swap
Annual
5
Year
+
3.62%),
3.75%,
02/15/29
.....................
500
619,313
Barclays
plc:
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
6.58%),
7.12%
(a)(j)
..
GBP
1,200
1,611,131
5.20%,
05/12/26
..................
USD
7,800
8,648,250
BNP
Paribas
SA
(j)
:
6.50%
.........................
376
380,459
(USD
Swap
Semi
5
Year
+
5.15%),
7.38%
(a)
2,200
2,450,250
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
2.94%),
4.50%
(a)(b)
.....................
10,150
9,731,313
CaixaBank
SA
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
6.50%),
6.75%
EUR
3,000
3,653,549
(EUR
Swap
Annual
5
Year
+
4.50%),
5.25%
2,400
2,609,086
CIT
Group,
Inc.:
5.00%,
08/01/23
..................
USD
5,582
5,791,325
4.75%,
02/16/24
..................
526
541,449
6.00%,
04/01/36
..................
23,131
23,362,310
Commerzbank
AG
(a)
:
(EUR
Swap
Annual
5
Year
+
6.36%),
6.12%
(j)
......................
EUR
2,400
2,743,533
(EUR
Swap
Annual
5
Year
+
4.35%),
4.00%,
12/05/30
.....................
1,400
1,676,442
Cooperatieve
Rabobank
UA,
(EUR
Swap
Annual
5
Year
+
4.10%),
4.62%
(a)(j)
......
400
481,414
Credit
Agricole
SA
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
5.12%),
6.50%
3,237
3,880,051
(GBP
Swap
5
Year
+
4.54%),
7.50%
....
GBP
2,200
3,194,809
Erste
Group
Bank
AG,
(EUR
Swap
Annual
5
Year
+
6.20%),
6.50%
(a)(j)
............
EUR
800
1,005,643
HBOS
Capital
Funding
No.
1
LP:
6.85%
(j)
........................
USD
6,730
6,830,950
HSBC
Holdings
plc,
(USD
Swap
Rate
5
Year
+
3.75%),
6.00%
(a)(j)
................
24,053
24,654,325
Security
Par
(000)
Value
Banks
(continued)
ING
Groep
NV
(a)(j)
:
(USD
Swap
Rate
5
Year
+
4.20%),
6.75%
.
USD
2,764
$
2,922,930
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.34%),
5.75%
.......................
2,200
2,285,250
Intesa
Sanpaolo
SpA:
(EUR
Swap
Annual
5
Year
+
7.19%),
7.75%
(a)(j)
.....................
EUR
4,683
6,167,605
5.15%,
06/10/30
..................
GBP
1,800
2,516,135
(EUR
Swap
Annual
5
Year
+
6.09%),
5.87%
(a)(j)
.....................
EUR
1,325
1,516,601
National
Westminster
Bank
plc
(a)(j)
:
Series
C,
(LIBOR
USD
3
Month
+
0.25%),
0.51%
.......................
USD
1,240
1,091,200
Series
A,
(LIMEAN
USD
6
Month
+
0.25%),
0.63%
.......................
600
526,080
Series
B,
(LIBOR
USD
6
Month
+
0.25%),
0.41%
.......................
800
701,440
Natwest
Group
plc,
(USD
Swap
Semi
5
Year
+
7.60%),
8.62%
(a)(j)
................
6,571
6,735,275
Santander
UK
Group
Holdings
plc,
(GBP
Swap
5
Year
+
5.79%),
6.75%
(a)(j)
...........
GBP
200
271,172
Societe
Generale
SA
(a)(j)
:
(USD
Swap
Semi
5
Year
+
6.24%),
7.38%
USD
600
615,000
(USD
Swap
Rate
5
Year
+
5.87%),
8.00%
.
400
446,500
Stichting
AK
Rabobank
Certificaten,
0.00%
(j)(l)
.
EUR
1,900
2,649,897
UniCredit
SpA
(a)
:
(EUR
Swap
Annual
5
Year
+
6.10%),
6.75%
(j)
......................
2,622
3,076,586
(EUR
Swap
Annual
5
Year
+
9.30%),
9.25%
(j)
......................
2,294
2,913,483
(EUR
Swap
Annual
5
Year
+
6.39%),
6.62%
(j)
......................
1,200
1,392,691
(EURIBOR
Swap
Rate
5
Year
+
7.33%),
7.50%
(j)
......................
2,200
2,785,555
(EURIBOR
Swap
Rate
5
Year
+
4.74%),
4.87%,
02/20/29
................
3,000
3,723,790
(EUR
Swap
Annual
5
Year
+
2.40%),
2.00%,
09/23/29
.....................
1,400
1,547,048
(EUR
Swap
Annual
5
Year
+
2.80%),
2.73%,
01/15/32
.....................
1,200
1,326,041
Unione
di
Banche
Italiane
SpA
(a)
:
(EUR
Swap
Annual
5
Year
+
6.07%),
5.87%
(j)
......................
1,400
1,598,342
(EUR
Swap
Annual
5
Year
+
5.75%),
5.87%,
03/04/29
.....................
1,313
1,700,762
185,701,368
Biotechnology
—
0.0%
Emergent
BioSolutions,
Inc.,
3.88%,
08/15/28
(b)
USD
5,317
5,337,896
Building
Products
—
0.9%
Advanced
Drainage
Systems,
Inc.,
5.00%,
09/30/27
(b)
.....................
10,364
10,830,380
Builders
FirstSource,
Inc.,
6.75%,
06/01/27
(b)
.
6,822
7,308,068
Cornerstone
Building
Brands,
Inc.,
6.13%,
01/15/29
(b)
.....................
17,336
17,559,461
Forterra
Finance
LLC,
6.50%,
07/15/25
(b)
...
34,612
36,569,309
Griffon
Corp.,
5.75%,
03/01/28
..........
5,922
6,181,561
HT
Troplast
GmbH,
9.25%,
07/15/25
......
EUR
1,171
1,456,963
James
Hardie
International
Finance
DAC
(b)
:
4.75%,
01/15/25
..................
USD
5,069
5,176,716
5.00%,
01/15/28
..................
3,204
3,340,170
JELD-WEN,
Inc.
(b)
:
6.25%,
05/15/25
..................
9,275
9,877,875
4.63%,
12/15/25
..................
4,547
4,569,735
4.88%,
12/15/27
..................
3,220
3,281,341
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
53
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Building
Products
(continued)
Masonite
International
Corp.
(b)
:
5.75%,
09/15/26
..................
USD
1,286
$
1,340,655
5.38%,
02/01/28
..................
4,831
5,151,947
Standard
Industries,
Inc.:
2.25%,
11/21/26
..................
EUR
2,959
3,313,367
5.00%,
02/15/27
(b)
.................
USD
9,261
9,631,440
4.75%,
01/15/28
(b)
.................
604
626,650
4.38%,
07/15/30
(b)
.................
32,311
33,127,337
3.38%,
01/15/31
(b)
.................
45,121
44,534,201
Summit
Materials
LLC,
5.25%,
01/15/29
(b)
...
14,390
14,983,588
218,860,764
Capital
Markets
—
0.9%
Credit
Suisse
Group
AG
(a)(j)
:
(USD
Swap
Semi
5
Year
+
4.60%),
7.50%
(b)
8,217
8,671,482
(USD
Swap
Semi
5
Year
+
4.60%),
7.50%
969
1,056,210
(USD
Swap
Semi
5
Year
+
3.46%),
6.25%
(b)
3,000
3,213,414
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.33%),
7.25%
.......................
2,400
2,601,000
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.82%),
6.37%
(b)
......................
23,920
25,564,500
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.89%),
5.25%
(b)
......................
18,860
18,897,720
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.29%),
5.10%
(b)
......................
7,205
6,952,825
Goldman
Sachs
Group,
Inc.
(The),
Series
R,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.22%),
4.95%
(a)(j)
39,265
39,276,779
Lehman
Brothers
Holdings
Capital
Trust
Escrow
Bonds
(d)(k)
:
5.38%,
10/17/12
..................
EUR
4,550
61,348
4.75%,
01/16/14
..................
14,545
196,113
(EURIBOR
3
Month
+
0.30%),
0.00%,
02/05/14
(a)
....................
22,800
307,416
LHC3
plc,
4.13%,
(4.13%
Cash
or
9.00%
PIK),
08/15/24
(i)
.....................
3,876
4,567,339
LPL
Holdings,
Inc.,
5.75%,
09/15/25
(b)
.....
USD
3,669
3,801,763
MSCI,
Inc.
(b)
:
4.75%,
08/01/26
..................
1,689
1,752,338
4.00%,
11/15/29
..................
2,410
2,530,500
3.63%,
09/01/30
..................
2,974
3,050,670
3.88%,
02/15/31
..................
37,917
39,517,097
Owl
Rock
Capital
Corp.:
5.25%,
04/15/24
..................
4,662
4,836,865
4.00%,
03/30/25
..................
3,540
3,571,315
3.75%,
07/22/25
..................
26,546
26,463,973
4.25%,
01/15/26
..................
13,774
13,953,475
Pershing
Square
Holdings
Ltd.,
5.50%,
07/15/22
(b)
.....................
12,000
12,693,750
UBS
Group
AG
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
5.29%),
5.75%
EUR
1,238
1,509,553
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.86%),
5.13%
.......................
USD
900
921,195
225,968,640
Chemicals
—
1.9%
Ashland
Services
BV,
2.00%,
01/30/28
.....
EUR
2,540
2,829,122
Atotech
Alpha
2
BV,
8.75%,
(8.75%
Cash
or
9.50%
PIK),
06/01/23
(b)(i)
............
USD
24,627
24,688,095
Atotech
Alpha
3
BV,
6.25%,
02/01/25
(b)
.....
109,128
110,628,510
Axalta
Coating
Systems
LLC
(b)
:
4.88%,
08/15/24
..................
7,033
7,164,869
4.75%,
06/15/27
..................
16,506
16,877,385
Security
Par
(000)
Value
Chemicals
(continued)
Blue
Cube
Spinco
LLC:
9.75%,
10/15/23
..................
USD
16,015
$
16,515,469
10.00%,
10/15/25
.................
25,910
27,399,825
CeramTec
BondCo
GmbH,
5.25%,
12/15/25
.
EUR
1,000
1,120,393
Chemours
Co.
(The),
6.63%,
05/15/23
.....
USD
16,336
16,531,950
Element
Solutions,
Inc.,
3.88%,
09/01/28
(b)
..
82,411
80,865,794
Gates
Global
LLC,
6.25%,
01/15/26
(b)
......
26,567
27,384,998
GCP
Applied
Technologies,
Inc.,
5.50%,
04/15/26
(b)
.....................
9,304
9,490,080
Illuminate
Buyer
LLC,
9.00%,
07/01/28
(b)
....
34,279
36,849,925
K+S
AG,
3.00%,
06/20/22
.............
EUR
1,300
1,489,891
Kraton
Polymers
LLC,
5.25%,
05/15/26
....
1,597
1,886,446
Kronos
International,
Inc.,
3.75%,
09/15/25
..
800
923,891
Minerals
Technologies,
Inc.,
5.00%,
07/01/28
(b)
USD
11,828
12,239,496
Monitchem
HoldCo
2
SA,
9.50%,
09/15/26
..
EUR
1,000
1,204,434
Monitchem
HoldCo
3
SA,
5.25%,
03/15/25
..
2,993
3,561,780
NOVA
Chemicals
Corp.,
4.88%,
06/01/24
(b)
..
USD
1,606
1,594,477
OCI
NV:
5.00%,
04/15/23
..................
EUR
1,000
1,199,351
3.13%,
11/01/24
..................
1,300
1,512,753
5.25%,
11/01/24
(b)
.................
USD
4,834
4,987,238
3.63%,
10/15/25
..................
EUR
1,730
2,028,339
Olin
Corp.,
5.50%,
08/15/22
...........
USD
255
260,737
PQ
Corp.,
5.75%,
12/15/25
(b)
...........
32,061
32,982,754
Synthomer
plc,
3.88%,
07/01/25
.........
EUR
1,199
1,430,368
Valvoline,
Inc.:
4.38%,
08/15/25
..................
USD
1,591
1,636,741
4.25%,
02/15/30
(b)
.................
9,921
10,119,420
WR
Grace
&
Co.,
5.63%,
10/01/24
(b)
......
6,558
6,967,875
WR
Grace
&
Co.-Conn.,
4.88%,
06/15/27
(b)
..
17,561
18,135,245
482,507,651
Commercial
Services
&
Supplies
—
2.7%
ADT
Security
Corp.
(The):
4.13%,
06/15/23
..................
198
207,108
4.88%,
07/15/32
(b)
.................
28,122
28,403,220
Advanced
Disposal
Services,
Inc.,
5.63%,
11/15/24
(b)
.....................
2,587
2,667,844
Allied
Universal
Holdco
LLC
(b)
:
6.63%,
07/15/26
..................
136,644
145,525,860
9.75%,
07/15/27
..................
36,426
39,577,577
APX
Group,
Inc.:
7.88%,
12/01/22
..................
2,587
2,587,000
8.50%,
11/01/24
..................
7,550
7,965,250
6.75%,
02/15/27
(b)
.................
14,991
15,553,162
Aramark
Services,
Inc.:
5.00%,
04/01/25
(b)
.................
10,790
10,945,376
6.38%,
05/01/25
(b)
.................
20,573
21,430,379
4.75%,
06/01/26
..................
2,051
2,075,202
5.00%,
02/01/28
(b)
.................
14,358
14,465,685
Brink's
Co.
(The),
5.50%,
07/15/25
(b)
......
5,676
5,917,230
Clean
Harbors,
Inc.
(b)
:
4.88%,
07/15/27
..................
16,513
17,132,238
5.13%,
07/15/29
..................
9,714
10,538,427
Covanta
Holding
Corp.,
5.00%,
09/01/30
...
6,192
6,249,586
Garda
World
Security
Corp.
(b)
:
4.63%,
02/15/27
..................
16,687
16,770,435
9.50%,
11/01/27
..................
12,169
12,777,450
GFL
Environmental,
Inc.
(b)
:
4.25%,
06/01/25
..................
5,193
5,244,930
3.75%,
08/01/25
..................
16,709
16,801,317
7.00%,
06/01/26
..................
39,583
41,728,399
5.13%,
12/15/26
..................
46,333
47,843,456
8.50%,
05/01/27
..................
16,900
18,336,500
IAA,
Inc.,
5.50%,
06/15/27
(b)
...........
14,507
15,105,414
Intrum
AB:
3.13%,
07/15/24
..................
EUR
2,000
2,204,206
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
54
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Commercial
Services
&
Supplies
(continued)
4.88%,
08/15/25
..................
EUR
346
$
397,554
3.50%,
07/15/26
..................
1,754
1,866,253
KAR
Auction
Services,
Inc.,
5.13%,
06/01/25
(b)
USD
3,920
3,919,922
Nielsen
Finance
LLC
(b)
:
5.63%,
10/01/28
..................
31,916
33,010,719
5.88%,
10/01/30
..................
21,427
22,176,945
Prime
Security
Services
Borrower
LLC
(b)
:
5.25%,
04/15/24
..................
3,134
3,282,865
5.75%,
04/15/26
..................
6,437
6,883,599
3.38%,
08/31/27
..................
24,066
23,085,190
6.25%,
01/15/28
..................
23,595
23,889,938
Ritchie
Bros
Auctioneers,
Inc.,
5.38%,
01/15/25
(b)
.....................
4,373
4,504,190
SPIE
SA,
2.63%,
06/18/26
............
EUR
1,800
2,089,306
Techem
Verwaltungsgesellschaft
674
mbH,
6.00%,
07/30/26
.................
2,900
3,459,573
Verisure
Holding
AB:
(EURIBOR
3
Month
+
5.00%),
5.00%,
04/15/25
(a)
....................
791
936,831
3.88%,
07/15/26
..................
2,325
2,727,309
Verisure
Midholding
AB,
5.75%,
12/01/23
...
3,167
3,707,000
Waste
Pro
USA,
Inc.,
5.50%,
02/15/26
(b)
....
USD
34,283
34,694,053
678,684,498
Communications
Equipment
—
0.8%
Avaya,
Inc.,
6.13%,
09/15/28
(b)
..........
43,165
44,011,034
CommScope
Technologies
LLC,
6.00%,
06/15/25
(b)
.....................
26,973
27,338,484
CommScope,
Inc.
(b)
:
5.50%,
03/01/24
..................
27,346
28,099,929
6.00%,
03/01/26
..................
17,363
18,100,928
8.25%,
03/01/27
..................
2,988
3,107,520
Nokia
OYJ,
6.63%,
05/15/39
...........
10,393
12,874,994
ViaSat,
Inc.
(b)
:
5.63%,
04/15/27
..................
37,847
38,935,101
6.50%,
07/15/28
..................
30,587
30,631,351
203,099,341
Construction
&
Engineering
—
0.3%
Brand
Industrial
Services,
Inc.,
8.50%,
07/15/25
(b)
.....................
21,064
19,905,480
Ferrovial
Netherlands
BV,
(EUR
Swap
Annual
5
Year
+
2.13%),
2.12%
(a)(j)
............
EUR
4,200
4,617,241
Heathrow
Finance
plc:
4.75%,
03/01/24
..................
GBP
400
511,925
4.13%,
09/01/29
..................
2,142
2,526,232
MasTec,
Inc.,
4.50%,
08/15/28
(b)
.........
USD
15,885
16,043,850
New
Enterprise
Stone
&
Lime
Co.,
Inc.
(b)
:
6.25%,
03/15/26
..................
3,485
3,589,550
9.75%,
07/15/28
..................
5,862
6,330,960
Pike
Corp.,
5.50%,
09/01/28
(b)
..........
7,928
7,977,074
Weekley
Homes
LLC,
4.88%,
09/15/28
(b)
....
5,596
5,651,960
67,154,272
Construction
Materials
—
0.0%
CEMEX
Finance
LLC,
4.63%,
06/15/24
....
EUR
800
955,547
Cemex
SAB
de
CV:
3.13%,
03/19/26
..................
1,600
1,878,851
US
Concrete,
Inc.,
5.13%,
03/01/29
(b)
......
USD
7,317
7,335,292
10,169,690
Consumer
Finance
—
1.5%
Ally
Financial,
Inc.:
5.75%,
11/20/25
..................
1,161
1,301,696
8.00%,
11/01/31
..................
38,760
53,067,267
Encore
Capital
Group,
Inc.,
4.88%,
10/15/25
.
EUR
1,032
1,205,927
FCE
Bank
plc,
1.62%,
05/11/23
.........
2,500
2,821,208
Ford
Motor
Credit
Co.
LLC:
3.20%,
01/15/21
..................
USD
1,300
1,297,254
Security
Par
(000)
Value
Consumer
Finance
(continued)
3.34%,
03/18/21
..................
USD
17,517
$
17,521,379
3.47%,
04/05/21
..................
3,150
3,142,125
5.88%,
08/02/21
..................
17,644
17,974,825
3.81%,
10/12/21
..................
3,433
3,441,583
5.60%,
01/07/22
..................
3,471
3,549,098
3.22%,
01/09/22
..................
5,619
5,611,695
2.98%,
08/03/22
..................
14,098
13,886,530
3.35%,
11/01/22
..................
6,788
6,686,180
3.09%,
01/09/23
..................
27,641
27,085,139
4.14%,
02/15/23
..................
10,485
10,550,217
3.10%,
05/04/23
..................
2,515
2,455,897
4.38%,
08/06/23
..................
3,687
3,743,411
3.81%,
01/09/24
..................
6,312
6,248,880
5.58%,
03/18/24
..................
3,500
3,640,831
1.74%,
07/19/24
..................
EUR
542
591,138
3.66%,
09/08/24
..................
USD
13,120
12,838,248
4.06%,
11/01/24
..................
15,724
15,704,345
5.13%,
06/16/25
..................
31,514
32,498,812
4.13%,
08/04/25
..................
10,779
10,675,683
3.25%,
09/15/25
..................
EUR
600
684,598
2.33%,
11/25/25
..................
6,200
6,767,616
4.39%,
01/08/26
..................
USD
16,342
16,155,538
General
Motors
Financial
Co.,
Inc.,
5.65%,
01/17/29
......................
3,986
4,649,727
Global
Aircraft
Leasing
Co.
Ltd.,
6.50%,
(6.50%
Cash
or
7.25%
PIK),
09/15/24
(b)(i)
.......
18,432
9,776,215
Navient
Corp.:
5.00%,
10/26/20
..................
4,891
4,891,000
7.25%,
09/25/23
..................
3,544
3,659,180
6.13%,
03/25/24
..................
6,829
6,880,218
5.88%,
10/25/24
..................
1,709
1,699,395
6.75%,
06/25/25
..................
1,258
1,273,725
6.75%,
06/15/26
..................
3,042
3,034,395
5.00%,
03/15/27
..................
227
213,160
OneMain
Finance
Corp.:
6.88%,
03/15/25
..................
11,432
12,685,805
8.88%,
06/01/25
..................
6,911
7,653,932
7.13%,
03/15/26
..................
13,690
15,294,468
6.63%,
01/15/28
..................
14,896
16,531,581
5.38%,
11/15/29
..................
3,575
3,718,000
373,107,921
Containers
&
Packaging
—
1.7%
ARD
Finance
SA,
6.50%,
06/30/27
(b)
......
42,209
41,989,236
Ardagh
Packaging
Finance
plc:
5.25%,
04/30/25
(b)
.................
12,840
13,417,800
2.13%,
08/15/26
..................
EUR
1,000
1,137,145
4.13%,
08/15/26
(b)
.................
USD
30,674
31,095,768
4.75%,
07/15/27
(b)
.................
GBP
4,000
5,172,867
4.75%,
07/15/27
..................
1,889
2,442,887
5.25%,
08/15/27
(b)
.................
USD
52,359
53,353,821
Ball
Corp.:
5.25%,
07/01/25
..................
994
1,125,133
4.88%,
03/15/26
..................
10,666
11,892,590
2.88%,
08/15/30
..................
20,318
20,089,423
Berry
Global,
Inc.:
1.00%,
01/15/25
..................
EUR
901
1,013,774
1.50%,
01/15/27
..................
600
677,329
Crown
Americas
LLC:
4.75%,
02/01/26
..................
USD
7,113
7,379,737
4.25%,
09/30/26
..................
9,441
9,771,435
Crown
Cork
&
Seal
Co.,
Inc.,
7.38%,
12/15/26
1,896
2,249,130
Graham
Packaging
Co.,
Inc.,
7.13%,
08/15/28
(b)
7,326
7,628,197
Graphic
Packaging
International
LLC:
4.88%,
11/15/22
..................
223
231,641
4.75%,
07/15/27
(b)
.................
1,424
1,541,480
3.50%,
03/15/28
(b)
.................
3,557
3,548,108
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
55
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Containers
&
Packaging
(continued)
3.50%,
03/01/29
(b)
.................
USD
3,580
$
3,602,375
Intelligent
Packaging
Ltd.
Finco,
Inc.,
6.00%,
09/15/28
(b)
.....................
9,294
9,424,581
Intertape
Polymer
Group,
Inc.,
7.00%,
10/15/26
(b)
.....................
6,245
6,557,250
LABL
Escrow
Issuer
LLC,
6.75%,
07/15/26
(b)
.
18,537
19,556,535
Mauser
Packaging
Solutions
Holding
Co.:
4.75%,
04/15/24
..................
EUR
1,416
1,614,348
5.50%,
04/15/24
(b)
.................
USD
17,665
17,727,534
OI
European
Group
BV:
3.13%,
11/15/24
..................
EUR
1,200
1,419,199
2.88%,
02/15/25
..................
2,184
2,516,532
Sealed
Air
Corp.
(b)
:
5.25%,
04/01/23
..................
USD
534
563,370
5.13%,
12/01/24
..................
2,230
2,415,369
6.88%,
07/15/33
..................
158
202,635
Silgan
Holdings,
Inc.:
3.25%,
03/15/25
..................
EUR
1,300
1,539,029
4.13%,
02/01/28
..................
USD
730
746,425
2.25%,
06/01/28
..................
EUR
2,254
2,570,028
Trivium
Packaging
Finance
BV
(l)
:
3.75%,
08/15/26
..................
2,005
2,320,955
5.50%,
08/15/26
(b)
.................
USD
39,883
41,297,849
8.50%,
08/15/27
(b)
.................
82,773
89,247,918
419,079,433
Distributors
—
0.5%
(b)
American
Builders
&
Contractors
Supply
Co.,
Inc.:
5.88%,
05/15/26
..................
12,097
12,550,637
4.00%,
01/15/28
..................
5,395
5,482,669
Core
&
Main
LP,
6.13%,
08/15/25
........
90,214
91,380,016
Wolverine
Escrow
LLC:
8.50%,
11/15/24
..................
3,284
2,692,880
9.00%,
11/15/26
..................
4,827
3,982,275
116,088,477
Diversified
Consumer
Services
—
0.4%
frontdoor,
Inc.,
6.75%,
08/15/26
(b)
........
11,272
12,004,680
Graham
Holdings
Co.,
5.75%,
06/01/26
(b)
...
7,807
8,216,867
Laureate
Education,
Inc.,
8.25%,
05/01/25
(b)
.
5,260
5,575,600
Service
Corp.
International:
5.13%,
06/01/29
..................
4,971
5,508,514
3.38%,
08/15/30
..................
18,644
18,667,305
ServiceMaster
Co.
LLC
(The),
5.13%,
11/15/24
(b)
.....................
11,645
11,907,013
Sotheby's,
7.38%,
10/15/27
(b)
...........
30,117
30,117,000
91,996,979
Diversified
Financial
Services
—
1.5%
Arrow
Global
Finance
plc,
5.13%,
09/15/24
..
GBP
2,521
3,068,789
Cabot
Financial
Luxembourg
II
SA,
(EURIBOR
3
Month
+
6.38%),
6.37%,
06/14/24
(a)
....
EUR
115
134,511
Cabot
Financial
Luxembourg
SA,
7.50%,
10/01/23
......................
GBP
4,200
5,464,614
Fairstone
Financial,
Inc.,
7.88%,
07/15/24
(b)
..
USD
7,510
7,697,750
Garfunkelux
Holdco
3
SA:
7.50%,
08/01/22
..................
EUR
4,930
5,329,325
8.50%,
11/01/22
..................
GBP
600
709,958
(EURIBOR
3
Month
+
3.50%),
3.50%,
09/01/23
(a)
....................
EUR
500
522,456
MPH
Acquisition
Holdings
LLC,
7.13%,
06/01/24
(b)
.....................
USD
58,605
60,207,847
ProGroup
AG,
3.00%,
03/31/26
.........
EUR
600
695,618
Refinitiv
US
Holdings,
Inc.:
4.50%,
05/15/26
(b)
.................
20,132
24,669,237
4.50%,
05/15/26
..................
5,809
7,118,200
6.25%,
05/15/26
(b)
.................
USD
26,516
28,372,120
Security
Par
(000)
Value
Diversified
Financial
Services
(continued)
8.25%,
11/15/26
(b)
.................
USD
43,163
$
47,263,485
Sabre
GLBL,
Inc.
(b)
:
5.25%,
11/15/23
..................
2,409
2,354,797
9.25%,
04/15/25
..................
27,659
30,440,666
7.38%,
09/01/25
..................
16,679
16,845,790
Verscend
Escrow
Corp.,
9.75%,
08/15/26
(b)
..
119,762
130,216,025
371,111,188
Diversified
Telecommunication
Services
—
6.4%
Altice
France
Holding
SA:
8.00%,
05/15/27
(b)
.................
EUR
1,000
1,242,797
8.00%,
05/15/27
..................
2,854
3,546,943
10.50%,
05/15/27
(b)
................
USD
114,718
127,480,377
6.00%,
02/15/28
(b)
.................
36,385
34,703,649
Altice
France
SA:
2.50%,
01/15/25
..................
EUR
1,577
1,761,128
7.38%,
05/01/26
(b)
.................
USD
54,231
56,828,665
5.88%,
02/01/27
..................
EUR
4,300
5,322,570
8.13%,
02/01/27
(b)
.................
USD
61,282
66,797,380
5.50%,
01/15/28
(b)
.................
25,331
25,647,637
4.13%,
01/15/29
..................
EUR
1,123
1,315,806
5.13%,
01/15/29
(b)
.................
USD
10,979
10,937,829
CCO
Holdings
LLC
(b)
:
5.75%,
02/15/26
..................
5,794
6,025,760
5.50%,
05/01/26
..................
6,220
6,461,025
5.13%,
05/01/27
..................
36,903
38,830,075
5.00%,
02/01/28
..................
22,257
23,369,850
5.38%,
06/01/29
..................
16,724
18,124,635
4.75%,
03/01/30
..................
18,094
19,157,022
4.50%,
08/15/30
..................
49,648
52,132,634
4.25%,
02/01/31
..................
55,139
57,149,484
4.50%,
05/01/32
..................
62,734
65,478,613
CenturyLink,
Inc.:
Series
W,
6.75%,
12/01/23
...........
8,467
9,281,949
Series
Y,
7.50%,
04/01/24
...........
10,062
11,265,415
5.13%,
12/15/26
(b)
.................
56,344
57,887,262
4.00%,
02/15/27
(b)
.................
37,664
38,263,234
Series
P,
7.60%,
09/15/39
...........
21,890
24,733,073
Series
U,
7.65%,
03/15/42
...........
36,891
41,225,693
Cincinnati
Bell,
Inc.
(b)
:
7.00%,
07/15/24
..................
34,421
35,432,633
8.00%,
10/15/25
..................
6,103
6,446,294
Consolidated
Communications,
Inc.,
6.50%,
10/01/28
(b)
.....................
14,303
14,589,060
Frontier
Communications
Corp.
(b)(l)
:
8.50%,
04/01/26
..................
13,730
13,839,840
8.00%,
04/01/27
..................
95,351
95,021,562
Intelsat
Jackson
Holdings
SA,
8.00%,
02/15/24
(b)(l)
....................
4,260
4,323,900
Level
3
Financing,
Inc.:
5.38%,
05/01/25
..................
5,354
5,520,028
5.25%,
03/15/26
..................
4,170
4,319,911
4.63%,
09/15/27
(b)
.................
15,410
15,833,775
4.25%,
07/01/28
(b)
.................
34,920
35,454,974
3.63%,
01/15/29
(b)
.................
24,579
24,271,763
Lorca
Telecom
Bondco
SAU,
4.00%,
09/18/27
EUR
1,459
1,738,539
Oi
SA,
10.00%,
(10.00%
Cash
or
4.00%
PIK),
07/27/25
(i)
.....................
USD
3,560
3,420,382
QualityTech
LP
(b)
:
4.75%,
11/15/25
..................
11,541
11,970,325
3.88%,
10/01/28
..................
20,872
21,009,755
Sable
International
Finance
Ltd.,
5.75%,
09/07/27
(b)
.....................
5,600
5,840,128
Sprint
Capital
Corp.:
6.88%,
11/15/28
..................
40,747
50,933,750
8.75%,
03/15/32
..................
42,630
62,402,220
Switch
Ltd.,
3.75%,
09/15/28
(b)
..........
25,063
25,313,630
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
56
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Diversified
Telecommunication
Services
(continued)
Telecom
Italia
Capital
SA:
6.38%,
11/15/33
..................
USD
16,703
$
19,876,570
6.00%,
09/30/34
..................
21,001
24,361,160
7.20%,
07/18/36
..................
11,490
14,491,188
7.72%,
06/04/38
..................
13,197
17,552,010
Telecom
Italia
Finance
SA,
7.75%,
01/24/33
.
EUR
3,262
5,469,081
Telecom
Italia
SpA:
4.00%,
04/11/24
..................
2,764
3,435,091
5.30%,
05/30/24
(b)
.................
USD
22,700
24,572,750
2.75%,
04/15/25
..................
EUR
2,313
2,788,851
3.00%,
09/30/25
..................
1,000
1,217,882
2.88%,
01/28/26
..................
500
603,719
3.63%,
05/25/26
..................
1,900
2,380,918
Telesat
Canada,
4.88%,
06/01/27
(b)
.......
USD
22,178
22,267,821
Virgin
Media
Finance
plc:
3.75%,
07/15/30
..................
EUR
4,933
5,522,354
Virgin
Media
Secured
Finance
plc:
5.00%,
04/15/27
..................
GBP
1,000
1,348,416
5.25%,
05/15/29
..................
300
408,880
5.50%,
05/15/29
(b)
.................
USD
23,896
25,651,161
4.50%,
08/15/30
(b)
.................
23,844
24,498,279
Zayo
Group
Holdings,
Inc.
(b)
:
4.00%,
03/01/27
..................
61,750
60,775,894
6.13%,
03/01/28
..................
83,907
86,608,805
1,586,483,804
Electric
Utilities
—
0.6%
ContourGlobal
Power
Holdings
SA,
4.13%,
08/01/25
......................
EUR
1,806
2,132,902
Drax
Finco
plc,
4.25%,
05/01/22
.........
GBP
500
646,891
Naturgy
Finance
BV,
(EUR
Swap
Annual
9
Year
+
3.08%),
3.37%
(a)(j)
...............
EUR
2,500
3,000,780
NextEra
Energy
Operating
Partners
LP
(b)
:
4.25%,
07/15/24
..................
USD
8,233
8,584,549
4.25%,
09/15/24
..................
5,361
5,588,843
4.50%,
09/15/27
..................
64
68,320
NRG
Energy,
Inc.:
3.75%,
06/15/24
(b)
.................
7,805
8,331,907
6.63%,
01/15/27
..................
5,532
5,850,090
5.75%,
01/15/28
..................
35
37,756
4.45%,
06/15/29
(b)
.................
22,117
24,369,623
5.25%,
06/15/29
(b)
.................
2,038
2,216,325
Pattern
Energy
Operations
LP,
4.50%,
08/15/28
(b)
.....................
37,151
38,544,162
PG&E
Corp.,
5.25%,
07/01/30
..........
23,538
22,773,015
Vistra
Operations
Co.
LLC
(b)
:
3.55%,
07/15/24
..................
2,619
2,790,001
5.00%,
07/31/27
..................
1,576
1,651,648
4.30%,
07/15/29
..................
14,842
16,200,370
142,787,182
Electrical
Equipment
—
0.1%
Orano
SA:
3.38%,
04/23/26
..................
EUR
500
603,763
2.75%,
03/08/28
..................
1,000
1,156,856
Sensata
Technologies
BV
(b)
:
5.63%,
11/01/24
..................
USD
3,212
3,485,020
5.00%,
10/01/25
..................
16,028
17,230,100
22,475,739
Electronic
Equipment,
Instruments
&
Components
—
0.4%
Belden,
Inc.:
4.13%,
10/15/26
..................
EUR
3,120
3,712,915
3.88%,
03/15/28
..................
900
1,055,205
CDW
LLC:
5.50%,
12/01/24
..................
USD
15,074
16,449,502
4.13%,
05/01/25
..................
16,367
16,898,928
3.25%,
02/15/29
..................
25,931
25,833,759
Security
Par
(000)
Value
Electronic
Equipment,
Instruments
&
Components
(continued)
Itron,
Inc.,
5.00%,
01/15/26
(b)
...........
USD
1,171
$
1,200,275
MTS
Systems
Corp.,
5.75%,
08/15/27
(b)
....
880
866,536
Sensata
Technologies,
Inc.
(b)
:
4.38%,
02/15/30
..................
5,571
5,849,550
3.75%,
02/15/31
..................
16,622
16,518,112
88,384,782
Energy
Equipment
&
Services
—
0.5%
Archrock
Partners
LP
(b)
:
6.88%,
04/01/27
..................
8,195
7,849,827
6.25%,
04/01/28
..................
25,310
23,854,675
ChampionX
Corp.,
6.38%,
05/01/26
.......
11,427
10,914,956
Pioneer
Energy
Services
Corp.
(b)(e)
:
(LIBOR
USD
3
Month
+
9.50%),
11.00%,
05/15/25
(a)
....................
17,965
14,113,753
5.00%,
(5.00%
Cash
or
5.00%
PIK),
11/15/25
(i)(m)
...................
12,112
6,545,882
Tervita
Corp.,
7.63%,
12/01/21
(b)
.........
20,090
18,332,125
Transocean,
Inc.,
11.50%,
01/30/27
(b)
......
6,899
2,829,970
USA
Compression
Partners
LP:
6.88%,
04/01/26
..................
18,357
18,196,376
6.88%,
09/01/27
..................
14,748
14,624,412
117,261,976
Entertainment
—
1.1%
Banijay
Entertainment
SASU,
3.50%,
03/01/25
EUR
892
1,018,285
Lions
Gate
Capital
Holdings
LLC
(b)
:
6.38%,
02/01/24
..................
USD
5,145
5,093,550
5.88%,
11/01/24
..................
6,779
6,660,367
Live
Nation
Entertainment,
Inc.:
2.50%,
03/15/23
(m)
................
14,109
15,715,537
6.50%,
05/15/27
(b)
.................
67,024
72,334,982
Netflix,
Inc.:
4.88%,
04/15/28
..................
12,199
13,632,383
5.88%,
11/15/28
..................
48,635
58,031,525
6.38%,
05/15/29
..................
4,457
5,482,110
3.88%,
11/15/29
..................
EUR
1,030
1,331,405
5.38%,
11/15/29
(b)
.................
USD
24,580
28,971,217
3.63%,
06/15/30
..................
EUR
6,167
7,827,015
4.88%,
06/15/30
(b)
.................
USD
24,703
28,161,420
Pinewood
Finance
Co.
Ltd.,
3.25%,
09/30/25
.
GBP
2,679
3,441,638
WMG
Acquisition
Corp.
(b)
:
5.50%,
04/15/26
..................
USD
6,577
6,823,637
3.88%,
07/15/30
..................
12,908
13,310,665
3.00%,
02/15/31
..................
4,626
4,497,629
272,333,365
Equity
Real
Estate
Investment
Trusts
(REITs)
—
3.2%
Brookfield
Property
REIT,
Inc.,
5.75%,
05/15/26
(b)
.....................
5,138
4,049,104
Diversified
Healthcare
Trust,
9.75%,
06/15/25
16,648
18,517,237
GLP
Capital
LP:
5.25%,
06/01/25
..................
16,029
17,404,609
5.38%,
04/15/26
..................
3,645
4,039,753
5.75%,
06/01/28
..................
4,199
4,793,956
5.30%,
01/15/29
..................
6,580
7,327,949
4.00%,
01/15/30
..................
26,174
27,090,090
4.00%,
01/15/31
..................
19,540
20,341,726
Host
Hotels
&
Resorts
LP,
Series
I,
3.50%,
09/15/30
......................
8,640
8,270,297
Iron
Mountain
UK
plc,
3.88%,
11/15/25
.....
GBP
4,932
6,426,486
Iron
Mountain,
Inc.
(b)
:
5.25%,
03/15/28
..................
USD
8,371
8,716,304
4.88%,
09/15/29
..................
2,975
3,027,063
5.25%,
07/15/30
..................
30,031
31,307,317
4.50%,
02/15/31
..................
6,445
6,505,583
5.63%,
07/15/32
..................
31,149
32,893,344
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
57
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
MGM
Growth
Properties
Operating
Partnership
LP:
5.63%,
05/01/24
..................
USD
35,390
$
37,523,309
4.63%,
06/15/25
(b)
.................
26,217
26,741,340
4.50%,
09/01/26
..................
26,710
27,097,696
5.75%,
02/01/27
..................
4,476
4,822,890
4.50%,
01/15/28
..................
25,313
25,787,619
MPT
Operating
Partnership
LP:
5.25%,
08/01/26
..................
4,582
4,719,460
5.00%,
10/15/27
..................
50,289
52,436,341
4.63%,
08/01/29
..................
29,626
30,824,964
Park
Intermediate
Holdings
LLC,
5.88%,
10/01/28
(b)
.....................
6,429
6,412,927
RHP
Hotel
Properties
LP,
4.75%,
10/15/27
..
36,128
33,307,126
SBA
Communications
Corp.:
4.88%,
09/01/24
..................
18,782
19,249,672
3.88%,
02/15/27
(b)
.................
68,309
69,333,635
Service
Properties
Trust:
4.50%,
06/15/23
..................
2,810
2,755,711
4.35%,
10/01/24
..................
2,862
2,590,110
7.50%,
09/15/25
..................
21,355
22,693,958
Uniti
Group
LP:
6.00%,
04/15/23
(b)
.................
14,142
14,221,549
8.25%,
10/15/23
..................
16,898
16,644,530
7.88%,
02/15/25
(b)
.................
9,927
10,519,691
VICI
Properties
LP
(b)
:
3.50%,
02/15/25
..................
18,185
18,003,241
4.25%,
12/01/26
..................
61,441
61,726,701
3.75%,
02/15/27
..................
22,580
22,202,462
4.63%,
12/01/29
..................
26,831
27,300,543
4.13%,
08/15/30
..................
58,987
58,028,461
795,654,754
Food
&
Staples
Retailing
—
0.6%
Albertsons
Cos.,
Inc.:
5.75%,
03/15/25
..................
1,518
1,565,893
3.25%,
03/15/26
(b)
.................
31,210
30,970,307
4.63%,
01/15/27
(b)
.................
30,755
31,468,208
5.88%,
02/15/28
(b)
.................
19,068
20,355,090
4.88%,
02/15/30
(b)
.................
11,009
11,476,883
Casino
Guichard
Perrachon
SA
(l)
:
3.58%,
02/07/25
..................
EUR
1,900
1,682,931
4.05%,
08/05/26
..................
900
789,399
Picard
Groupe
SAS,
(EURIBOR
3
Month
+
3.00%),
3.00%,
11/30/23
(a)
...........
3,000
3,411,689
Quatrim
SASU,
5.88%,
01/15/24
........
1,600
1,791,398
Sysco
Corp.:
6.60%,
04/01/40
..................
USD
11,350
15,351,212
6.60%,
04/01/50
..................
11,350
15,932,448
US
Foods,
Inc.,
6.25%,
04/15/25
(b)
.......
8,772
9,287,355
144,082,813
Food
Products
—
2.3%
Chobani
LLC,
7.50%,
04/15/25
(b)
........
43,711
45,187,120
Darling
Ingredients,
Inc.,
5.25%,
04/15/27
(b)
..
3,825
4,016,250
JBS
Investments
II
GmbH,
7.00%,
01/15/26
(b)
.
1,800
1,921,500
JBS
USA
LUX
SA
(b)
:
5.88%,
07/15/24
..................
11,896
12,130,351
5.75%,
06/15/25
..................
21,955
22,581,815
6.75%,
02/15/28
..................
6,468
7,017,780
6.50%,
04/15/29
..................
32,825
36,434,766
Kraft
Heinz
Foods
Co.:
3.88%,
05/15/27
(b)
.................
3,435
3,638,388
4.25%,
03/01/31
(b)
.................
89,669
98,380,421
5.00%,
07/15/35
..................
6,073
6,993,037
6.88%,
01/26/39
..................
14,509
19,434,200
4.63%,
10/01/39
(b)
.................
6,926
7,352,955
Security
Par
(000)
Value
Food
Products
(continued)
6.50%,
02/09/40
..................
USD
8,755
$
11,126,888
5.00%,
06/04/42
..................
3,696
4,047,574
5.20%,
07/15/45
..................
11,149
12,188,452
4.38%,
06/01/46
..................
32,798
33,697,581
4.88%,
10/01/49
(b)
.................
75,340
79,507,617
5.50%,
06/01/50
(b)
.................
84,604
96,960,885
Lamb
Weston
Holdings,
Inc.,
4.88%,
05/15/28
(b)
25,207
27,223,560
Post
Holdings,
Inc.
(b)
:
5.00%,
08/15/26
..................
15,207
15,587,175
5.75%,
03/01/27
..................
280
294,350
5.63%,
01/15/28
..................
4,943
5,244,968
5.50%,
12/15/29
..................
52
55,640
4.63%,
04/15/30
..................
12,002
12,347,057
Premier
Foods
Finance
plc,
6.25%,
10/15/23
.
GBP
800
1,057,674
Simmons
Foods,
Inc.,
7.75%,
01/15/24
(b)
...
USD
13,292
13,923,370
TreeHouse
Foods,
Inc.,
4.00%,
09/01/28
...
4,486
4,537,051
582,888,425
Gas
Utilities
—
0.2%
Ferrellgas
LP,
10.00%,
04/15/25
(b)
........
35,845
38,802,213
Health
Care
Equipment
&
Supplies
—
1.0%
Avantor
Funding,
Inc.,
4.63%,
07/15/28
(b)
...
64,079
66,481,963
Hologic,
Inc.
(b)
:
4.38%,
10/15/25
..................
8,587
8,780,207
4.63%,
02/01/28
..................
13,045
13,702,207
3.25%,
02/15/29
..................
2,251
2,265,069
Ortho-Clinical
Diagnostics,
Inc.
(b)
:
7.38%,
06/01/25
..................
37,086
37,642,290
7.25%,
02/01/28
..................
78,533
81,674,320
Teleflex,
Inc.:
4.88%,
06/01/26
..................
2,653
2,739,222
4.63%,
11/15/27
..................
1,930
2,031,325
4.25%,
06/01/28
(b)
.................
22,972
23,776,020
239,092,623
Health
Care
Providers
&
Services
—
4.4%
Acadia
Healthcare
Co.,
Inc.:
5.63%,
02/15/23
..................
4,501
4,529,131
5.50%,
07/01/28
(b)
.................
13,004
13,374,777
5.00%,
04/15/29
(b)
.................
8,248
8,361,410
AdaptHealth
LLC,
6.13%,
08/01/28
(b)
......
9,719
10,061,109
AHP
Health
Partners,
Inc.,
9.75%,
07/15/26
(b)
.
17,938
19,238,505
Centene
Corp.:
5.25%,
04/01/25
(b)
.................
15,431
16,036,667
5.38%,
06/01/26
(b)
.................
16,017
16,877,914
5.38%,
08/15/26
(b)
.................
24,103
25,529,295
4.25%,
12/15/27
..................
35,381
37,023,740
4.63%,
12/15/29
..................
53,213
57,398,734
3.38%,
02/15/30
..................
657
681,637
3.00%,
10/15/30
..................
28,909
29,492,962
Community
Health
Systems,
Inc.
(b)
:
8.63%,
01/15/24
..................
35,766
35,587,170
6.63%,
02/15/25
..................
20,376
19,713,780
8.00%,
03/15/26
..................
86,522
85,051,126
Encompass
Health
Corp.:
5.75%,
11/01/24
..................
273
273,410
4.50%,
02/01/28
..................
2,939
2,953,695
4.75%,
02/01/30
..................
4,115
4,174,832
4.63%,
04/01/31
..................
6,979
6,979,000
HCA,
Inc.:
5.38%,
02/01/25
..................
22,487
24,623,265
5.88%,
02/15/26
..................
3,301
3,697,120
5.38%,
09/01/26
..................
24,034
26,557,570
5.63%,
09/01/28
..................
46,327
52,995,772
5.88%,
02/01/29
..................
14,758
17,193,070
3.50%,
09/01/30
..................
70,456
71,786,209
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
58
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Health
Care
Providers
&
Services
(continued)
LifePoint
Health,
Inc.
(b)
:
6.75%,
04/15/25
..................
USD
12,850
$
13,524,625
4.38%,
02/15/27
..................
3,392
3,396,240
MEDNAX,
Inc.
(b)
:
5.25%,
12/01/23
..................
10,568
10,700,100
6.25%,
01/15/27
..................
18,981
19,692,028
Molina
Healthcare,
Inc.:
5.38%,
11/15/22
(l)
.................
12,838
13,415,710
4.88%,
06/15/25
(b)
.................
3,370
3,437,400
4.38%,
06/15/28
(b)
.................
12,500
12,756,250
Phoenix
PIB
Dutch
Finance
BV,
2.38%,
08/05/25
......................
EUR
1,200
1,417,239
Polaris
Intermediate
Corp.,
8.50%,
(8.50%
Cash
or
9.25%
PIK),
12/01/22
(b)(i)
.......
USD
26,850
27,319,659
RegionalCare
Hospital
Partners
Holdings,
Inc.,
9.75%,
12/01/26
(b)
................
8,178
8,689,125
Surgery
Center
Holdings,
Inc.
(b)
:
6.75%,
07/01/25
..................
36,990
36,805,465
10.00%,
04/15/27
.................
17,542
18,682,230
Synlab
Bondco
plc,
(EURIBOR
3
Month
+
4.75%),
4.75%,
07/01/25
(a)
...........
EUR
3,429
4,063,148
Tenet
Healthcare
Corp.:
8.13%,
04/01/22
..................
USD
66,832
74,310,501
4.63%,
07/15/24
..................
8,506
8,548,530
4.63%,
09/01/24
(b)
.................
11,186
11,276,830
7.50%,
04/01/25
(b)
.................
10,079
10,834,925
4.88%,
01/01/26
(b)
.................
67,080
68,298,173
6.25%,
02/01/27
(b)
.................
9,671
9,982,503
5.13%,
11/01/27
(b)
.................
41,787
42,923,606
4.63%,
06/15/28
(b)
.................
9,494
9,630,714
6.13%,
10/01/28
(b)
.................
34,030
33,094,175
Vizient,
Inc.,
6.25%,
05/15/27
(b)
.........
18,737
19,627,007
West
Street
Merger
Sub,
Inc.,
6.38%,
09/01/25
(b)
.....................
29,827
30,417,276
1,083,035,359
Health
Care
Technology
—
0.1%
IQVIA,
Inc.:
3.25%,
03/15/25
..................
EUR
8,000
9,433,251
5.00%,
10/15/26
(b)
.................
USD
18,194
19,012,730
5.00%,
05/15/27
(b)
.................
6,301
6,607,040
35,053,021
Hotels,
Restaurants
&
Leisure
—
4.6%
1011778
BC
ULC
(b)
:
4.25%,
05/15/24
..................
10,511
10,704,928
5.75%,
04/15/25
..................
15,028
16,042,390
5.00%,
10/15/25
..................
66,624
68,313,585
3.88%,
01/15/28
..................
19,508
19,874,750
4.38%,
01/15/28
..................
31,003
31,616,859
4.00%,
10/15/30
..................
1,022
1,029,880
Aramark
International
Finance
SARL,
3.13%,
04/01/25
......................
EUR
1,140
1,276,446
Boyd
Gaming
Corp.:
8.63%,
06/01/25
(b)
.................
USD
21,706
23,795,854
6.38%,
04/01/26
..................
7,879
8,203,536
4.75%,
12/01/27
..................
10,866
10,662,262
Boyne
USA,
Inc.,
7.25%,
05/01/25
(b)
......
9,453
9,925,650
Burger
King
France
SAS,
6.00%,
05/01/24
..
EUR
1,486
1,701,617
Caesars
Entertainment,
Inc.
(b)
:
6.25%,
07/01/25
..................
USD
92,595
96,784,461
8.13%,
07/01/27
..................
54,289
57,546,340
Caesars
Resort
Collection
LLC,
5.75%,
07/01/25
(b)
.....................
42,188
43,506,375
Carnival
Corp.:
11.50%,
04/01/23
(b)
................
33,928
38,021,244
10.13%,
02/01/26
.................
EUR
576
715,952
Security
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
10.50%,
02/01/26
(b)
................
USD
9,034
$
10,005,155
9.88%,
08/01/27
(b)
.................
8,628
9,142,142
Cedar
Fair
LP,
5.50%,
05/01/25
(b)
........
38,100
39,243,000
Churchill
Downs,
Inc.
(b)
:
5.50%,
04/01/27
..................
30,057
31,373,497
4.75%,
01/15/28
..................
21,020
21,125,100
Cirsa
Finance
International
SARL:
7.88%,
12/20/23
(b)
.................
600
553,500
4.75%,
05/22/25
..................
EUR
2,920
2,954,527
Codere
Finance
2
Luxembourg
SA:
6.75%,
11/01/21
(d)(k)
................
1,900
1,214,072
7.63%,
11/01/21
(b)(d)(k)
...............
USD
1,300
715,000
12.75%,
09/30/23
.................
EUR
768
900,287
CPUK
Finance
Ltd.:
4.25%,
08/28/22
..................
GBP
396
503,909
4.88%,
08/28/25
..................
1,050
1,263,709
Gamma
Bidco
SpA,
6.25%,
07/15/25
......
EUR
3,272
3,797,894
Golden
Nugget,
Inc.,
6.75%,
10/15/24
(b)
....
USD
45,589
38,066,815
Greene
King
Finance
plc,
Series
B2,
(LIBOR
GBP
3
Month
+
2.08%),
2.14%,
03/15/36
(a)
.
GBP
100
92,905
Hilton
Domestic
Operating
Co.,
Inc.:
4.25%,
09/01/24
..................
USD
6,432
6,399,840
5.38%,
05/01/25
(b)
.................
10,562
11,029,897
5.13%,
05/01/26
..................
26,290
27,059,508
5.75%,
05/01/28
(b)
.................
11,868
12,505,905
4.88%,
01/15/30
..................
47,452
48,875,560
Hilton
Worldwide
Finance
LLC:
4.63%,
04/01/25
..................
966
975,660
4.88%,
04/01/27
..................
4,937
5,015,622
International
Game
Technology
plc:
3.50%,
07/15/24
..................
EUR
2,100
2,425,213
3.50%,
06/15/26
..................
400
444,339
5.25%,
01/15/29
(b)
.................
USD
575
581,469
IRB
Holding
Corp.,
7.00%,
06/15/25
(b)
.....
11,038
11,769,267
KFC
Holding
Co.
(b)
:
5.00%,
06/01/24
..................
2,000
2,050,600
5.25%,
06/01/26
..................
7,623
7,920,297
Las
Vegas
Sands
Corp.:
2.90%,
06/25/25
..................
2,276
2,273,114
3.50%,
08/18/26
..................
2,312
2,342,889
3.90%,
08/08/29
..................
4,781
4,780,102
Marriott
Ownership
Resorts,
Inc.,
6.50%,
09/15/26
......................
1,952
2,004,157
Merlin
Entertainments
Ltd.,
5.75%,
06/15/26
(b)
600
571,500
MGM
Resorts
International:
7.75%,
03/15/22
..................
29,981
31,601,473
6.00%,
03/15/23
..................
20,120
20,872,589
5.75%,
06/15/25
..................
744
780,307
NCL
Corp.
Ltd.,
10.25%,
02/01/26
(b)
.......
9,259
9,646,721
Powdr
Corp.,
6.00%,
08/01/25
(b)
.........
16,789
17,166,752
Royal
Caribbean
Cruises
Ltd.
(b)
:
10.88%,
06/01/23
.................
7,560
8,457,623
9.13%,
06/15/23
..................
11,493
12,182,580
11.50%,
06/01/25
.................
14,495
16,815,009
Scientific
Games
International,
Inc.:
8.63%,
07/01/25
(b)
.................
13,100
13,669,522
5.00%,
10/15/25
(b)
.................
9,833
9,882,165
3.38%,
02/15/26
..................
EUR
8,200
9,133,386
8.25%,
03/15/26
(b)
.................
USD
25,663
26,794,482
7.00%,
05/15/28
(b)
.................
7,540
7,558,454
7.25%,
11/15/29
(b)
.................
4,781
4,852,715
SeaWorld
Parks
&
Entertainment,
Inc.,
9.50%,
08/01/25
(b)
.....................
10,911
11,336,093
Sisal
Group
SpA,
7.00%,
07/31/23
.......
EUR
688
813,959
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(b)
USD
56,514
60,116,767
Station
Casinos
LLC,
4.50%,
02/15/28
(b)
....
10,413
9,579,960
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
59
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Hotels,
Restaurants
&
Leisure
(continued)
Stonegate
Pub
Co.
Financing
plc:
8.00%,
07/13/25
..................
GBP
1,764
$
2,094,083
8.25%,
07/31/25
..................
3,100
3,699,855
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(b)
......
USD
11,406
12,104,618
Wagamama
Finance
plc,
4.13%,
07/01/22
...
GBP
2,800
3,341,573
Wyndham
Destinations,
Inc.,
6.63%,
07/31/26
(b)
USD
11,413
11,956,373
Wyndham
Hotels
&
Resorts,
Inc.,
4.38%,
08/15/28
(b)
.....................
13,123
12,729,310
Wynn
Las
Vegas
LLC,
5.25%,
05/15/27
(b)
...
7,671
7,134,030
Wynn
Resorts
Finance
LLC
(b)
:
7.75%,
04/15/25
..................
15,193
16,090,678
5.13%,
10/01/29
..................
25,757
24,533,543
Yum!
Brands,
Inc.:
7.75%,
04/01/25
(b)
.................
22,592
25,055,658
4.75%,
01/15/30
(b)
.................
10,447
11,282,760
3.63%,
03/15/31
..................
4,589
4,589,000
5.35%,
11/01/43
..................
718
757,490
1,156,328,108
Household
Durables
—
1.1%
Ashton
Woods
USA
LLC,
6.63%,
01/15/28
(b)
.
3,575
3,592,875
Brookfield
Residential
Properties,
Inc.
(b)
:
6.25%,
09/15/27
..................
6,121
6,172,569
4.88%,
02/15/30
..................
25,482
23,851,407
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(b)
15,749
16,615,195
Installed
Building
Products,
Inc.,
5.75%,
02/01/28
(b)
.....................
6,390
6,725,475
K.
Hovnanian
Enterprises,
Inc.,
7.75%,
02/15/26
(b)
.....................
21,092
21,302,920
Lennar
Corp.:
8.38%,
01/15/21
..................
7,612
7,745,210
6.25%,
12/15/21
..................
54
55,553
4.88%,
12/15/23
..................
4,416
4,752,720
4.75%,
05/30/25
..................
4,283
4,674,391
5.25%,
06/01/26
..................
4,134
4,640,415
4.75%,
11/29/27
..................
11,628
13,276,269
Mattamy
Group
Corp.
(b)
:
5.25%,
12/15/27
..................
7,685
7,896,337
4.63%,
03/01/30
..................
14,421
14,602,705
MDC
Holdings,
Inc.,
6.00%,
01/15/43
......
5,518
6,676,780
Meritage
Homes
Corp.,
5.13%,
06/06/27
....
2,751
3,046,732
Newell
Brands,
Inc.,
4.88%,
06/01/25
......
9,423
10,165,061
Picasso
Finance
Sub,
Inc.,
6.13%,
06/15/25
(b)
30,340
32,680,428
PulteGroup,
Inc.:
5.00%,
01/15/27
..................
1,006
1,138,038
7.88%,
06/15/32
..................
1,100
1,512,500
6.38%,
05/15/33
..................
11,485
14,442,387
6.00%,
02/15/35
..................
7,702
9,511,970
Taylor
Morrison
Communities,
Inc.
(b)
:
5.88%,
06/15/27
..................
9,532
10,485,200
5.13%,
08/01/30
..................
15,320
16,315,800
Tempur
Sealy
International,
Inc.,
5.50%,
06/15/26
......................
218
226,273
Toll
Brothers
Finance
Corp.,
4.35%,
02/15/28
.
639
693,315
TRI
Pointe
Group,
Inc.:
5.88%,
06/15/24
..................
1,663
1,796,040
5.25%,
06/01/27
..................
4,958
5,292,665
5.70%,
06/15/28
..................
3,737
4,092,015
Williams
Scotsman
International,
Inc.,
4.63%,
08/15/28
(b)
.....................
15,640
15,703,186
269,682,431
Household
Products
—
0.2%
Energizer
Holdings,
Inc.
(b)
:
6.38%,
07/15/26
..................
5,333
5,734,042
7.75%,
01/15/27
..................
2,628
2,871,090
4.75%,
06/15/28
..................
11,547
11,949,990
Security
Par
(000)
Value
Household
Products
(continued)
4.38%,
03/31/29
..................
USD
1,324
$
1,337,240
Spectrum
Brands,
Inc.:
5.75%,
07/15/25
..................
1,010
1,041,310
5.00%,
10/01/29
(b)
.................
6,057
6,284,137
5.50%,
07/15/30
(b)
.................
10,692
11,280,060
40,497,869
Independent
Power
and
Renewable
Electricity
Producers
—
0.9%
Calpine
Corp.
(b)
:
5.25%,
06/01/26
..................
12,100
12,570,448
4.50%,
02/15/28
..................
38,139
39,059,675
5.13%,
03/15/28
..................
80,911
83,742,885
4.63%,
02/01/29
..................
38,543
38,470,732
5.00%,
02/01/31
..................
37,109
37,825,204
Clearway
Energy
Operating
LLC:
5.75%,
10/15/25
..................
10,270
10,783,500
4.75%,
03/15/28
(b)
.................
11,597
11,973,903
234,426,347
Industrial
Conglomerates
—
0.1%
General
Electric
Co.:
4.25%,
05/01/40
..................
8,425
8,547,665
4.35%,
05/01/50
..................
6,695
6,826,294
15,373,959
Insurance
—
1.1%
Achmea
BV,
(EURIBOR
Swap
Rate
5
Year
+
4.78%),
4.62%
(a)(j)
................
EUR
2,800
3,257,057
Acrisure
LLC,
8.13%,
02/15/24
(b)
.........
USD
2,020
2,115,950
Alliant
Holdings
Intermediate
LLC,
6.75%,
10/15/27
(b)
.....................
87,461
91,757,084
AmWINS
Group,
Inc.,
7.75%,
07/01/26
(b)
....
23,856
25,525,920
Ardonagh
Midco
2
plc,
11.50%,
01/15/27
(b)
..
5,972
6,031,720
Assicurazioni
Generali
SpA,
(EURIBOR
3
Month
+
4.50%),
4.60%
(a)(j)
...........
EUR
900
1,125,112
ELM
BV
for
Swiss
Re
Ltd.,
3.25%,
06/13/24
(m)
USD
1,000
1,040,640
Galaxy
Bidco
Ltd.,
6.50%,
07/31/26
.......
GBP
1,984
2,607,415
GTCR
AP
Finance,
Inc.,
8.00%,
05/15/27
(b)
..
USD
13,165
13,889,075
HUB
International
Ltd.,
7.00%,
05/01/26
(b)
...
67,197
69,632,891
Legal
&
General
Group
plc,
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
5.38%),
5.62%
(a)(j)
................
GBP
1,925
2,540,806
NFP
Corp.
(b)
:
7.00%,
05/15/25
..................
USD
5,646
5,984,760
6.88%,
08/15/28
..................
44,381
44,930,215
Societa
Cattolica
di
Assicurazioni
SC,
(EURIBOR
3
Month
+
4.46%),
4.25%,
12/14/47
(a)
.....................
EUR
1,000
1,175,782
Unipol
Gruppo
SpA,
3.25%,
09/23/30
......
2,625
3,109,634
Willis
North
America,
Inc.,
2.95%,
09/15/29
..
USD
1,190
1,282,319
276,006,380
Interactive
Media
&
Services
—
0.1%
(b)
Rackspace
Technology
Global,
Inc.,
8.63%,
11/15/24
......................
17,307
18,123,890
Twitter,
Inc.,
3.88%,
12/15/27
...........
4,852
4,985,430
23,109,320
Internet
&
Direct
Marketing
Retail
—
0.5%
ANGI
Group
LLC,
3.88%,
08/15/28
(b)
......
17,407
17,232,930
Expedia
Group,
Inc.
(b)
:
6.25%,
05/01/25
..................
37,743
41,627,092
4.63%,
08/01/27
..................
15,680
16,476,160
Go
Daddy
Operating
Co.
LLC,
5.25%,
12/01/27
(b)
.....................
7,055
7,341,221
Match
Group
Holdings
II
LLC
(b)
:
4.63%,
06/01/28
..................
16,511
17,006,330
4.13%,
08/01/30
..................
11,975
12,113,431
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
60
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Internet
&
Direct
Marketing
Retail
(continued)
Very
Group
Funding
plc
(The),
7.75%,
11/15/22
GBP
1,000
$
1,232,284
113,029,448
IT
Services
—
1.4%
Banff
Merger
Sub,
Inc.:
8.38%,
09/01/26
..................
EUR
1,247
1,483,976
9.75%,
09/01/26
(b)
.................
USD
75,956
80,293,088
Black
Knight
InfoServ
LLC,
3.63%,
09/01/28
(b)
25,056
25,322,220
Booz
Allen
Hamilton,
Inc.,
3.88%,
09/01/28
(b)
.
29,489
30,271,933
Cablevision
Lightpath
LLC
(b)
:
3.88%,
09/15/27
..................
11,893
11,893,000
5.63%,
09/15/28
..................
12,436
12,618,809
Gartner,
Inc.
(b)
:
4.50%,
07/01/28
..................
20,761
21,825,001
3.75%,
10/01/30
..................
30,898
31,254,872
KBR,
Inc.,
4.75%,
09/30/28
(b)
...........
13,182
13,264,388
Northwest
Fiber
LLC,
10.75%,
06/01/28
(b)
...
6,083
6,630,470
Presidio
Holdings,
Inc.,
4.88%,
02/01/27
(b)
...
13,056
13,186,560
Science
Applications
International
Corp.,
4.88%,
04/01/28
(b)
................
11,711
11,890,061
Tempo
Acquisition
LLC
(b)
:
5.75%,
06/01/25
..................
20,268
21,230,730
6.75%,
06/01/25
..................
66,720
68,095,099
United
Group
BV:
4.88%,
07/01/24
..................
EUR
1,796
2,126,777
(EURIBOR
3
Month
+
3.25%),
3.25%,
02/15/26
(a)
....................
721
796,966
3.63%,
02/15/28
..................
1,104
1,214,651
WEX,
Inc.,
4.75%,
02/01/23
(b)
..........
USD
7,640
7,649,550
361,048,151
Leisure
Products
—
0.2%
Mattel,
Inc.:
6.75%,
12/31/25
(b)
.................
41,448
43,727,640
5.88%,
12/15/27
(b)
.................
10,302
11,087,527
6.20%,
10/01/40
..................
1,322
1,280,952
5.45%,
11/01/41
..................
6,903
6,455,099
62,551,218
Life
Sciences
Tools
&
Services
—
0.4%
Avantor,
Inc.:
4.75%,
10/01/24
..................
EUR
1,237
1,499,211
6.00%,
10/01/24
(b)
.................
USD
71,685
74,910,825
Charles
River
Laboratories
International,
Inc.
(b)
:
5.50%,
04/01/26
..................
13,662
14,379,255
4.25%,
05/01/28
..................
10,990
11,533,895
102,323,186
Machinery
—
1.2%
Amsted
Industries,
Inc.,
5.63%,
07/01/27
(b)
..
12,691
13,500,940
Clark
Equipment
Co.,
5.88%,
06/01/25
(b)
....
17,196
17,819,355
Colfax
Corp.
(b)
:
6.00%,
02/15/24
..................
14,566
15,094,017
6.38%,
02/15/26
..................
13,344
14,144,640
EnPro
Industries,
Inc.,
5.75%,
10/15/26
....
6,448
6,802,640
Grinding
Media,
Inc.,
7.38%,
12/15/23
(b)
....
11,995
12,144,937
Husky
III
Holding
Ltd.,
0.00%,
(0.00%
Cash
or
13.75%
PIK),
02/15/25
(b)(i)
...........
13,775
14,009,845
Mueller
Water
Products,
Inc.,
5.50%,
06/15/26
(b)
7,959
8,217,668
Navistar
International
Corp.
(b)
:
9.50%,
05/01/25
..................
4,413
4,972,436
6.63%,
11/01/25
..................
14,062
14,378,395
Novafives
SAS,
5.00%,
06/15/25
........
EUR
1,660
1,405,205
Platin
1426
GmbH,
5.38%,
06/15/23
......
723
796,820
RBS
Global,
Inc.,
4.88%,
12/15/25
(b)
......
USD
27,588
27,967,335
Rebecca
Bidco
GmbH,
5.75%,
07/15/25
....
EUR
2,323
2,731,772
Stevens
Holding
Co.,
Inc.,
6.13%,
10/01/26
(b)
.
USD
7,007
7,497,490
Terex
Corp.,
5.63%,
02/01/25
(b)
.........
4,154
4,164,385
Security
Par
(000)
Value
Machinery
(continued)
Titan
Acquisition
Ltd.,
7.75%,
04/15/26
(b)
....
USD
30,438
$
30,285,810
Vertical
Holdco
GmbH,
7.63%,
07/15/28
(b)
...
13,100
13,845,063
Vertical
Midco
GmbH,
4.38%,
07/15/27
....
EUR
2,069
2,463,399
Vertical
US
Newco,
Inc.,
5.25%,
07/15/27
(b)
..
USD
59,862
62,212,481
Wabash
National
Corp.,
5.50%,
10/01/25
(b)
..
14,911
14,911,000
289,365,633
Marine
—
0.0%
CMA
CGM
SA,
6.50%,
07/15/22
.........
EUR
1,800
2,086,183
Media
—
5.3%
Altice
Financing
SA:
2.25%,
01/15/25
..................
2,351
2,637,628
7.50%,
05/15/26
(b)
.................
USD
66,514
70,407,064
3.00%,
01/15/28
..................
EUR
1,649
1,791,894
5.00%,
01/15/28
(b)
.................
USD
21,472
20,854,680
Altice
Finco
SA,
4.75%,
01/15/28
........
EUR
2,400
2,546,561
AMC
Networks,
Inc.,
4.75%,
08/01/25
.....
USD
6,612
6,834,791
Block
Communications,
Inc.,
4.88%,
03/01/28
(b)
6,846
6,982,920
Century
Communications
Corp.
Escrow,
0.00%,
03/15/13
(d)(e)(k)
...................
625
—
Clear
Channel
International
BV,
6.63%,
08/01/25
(b)
.....................
26,062
26,656,214
Clear
Channel
Worldwide
Holdings,
Inc.:
9.25%,
02/15/24
..................
25,306
24,531,636
5.13%,
08/15/27
(b)
.................
85,782
82,372,166
CSC
Holdings
LLC:
5.25%,
06/01/24
..................
15,856
17,005,560
5.50%,
05/15/26
(b)
.................
8,096
8,419,840
5.38%,
02/01/28
(b)
.................
10,356
10,938,525
6.50%,
02/01/29
(b)
.................
14,034
15,560,197
5.75%,
01/15/30
(b)
.................
20,143
21,401,937
4.13%,
12/01/30
(b)
.................
35,094
35,769,560
4.63%,
12/01/30
(b)
.................
115,519
116,385,393
3.38%,
02/15/31
(b)
.................
27,297
26,430,320
Diamond
Sports
Group
LLC,
5.38%,
08/15/26
(b)
15,649
11,071,668
DISH
DBS
Corp.:
6.75%,
06/01/21
..................
23,677
24,268,925
5.88%,
07/15/22
..................
56,935
59,212,400
5.00%,
03/15/23
..................
50,252
51,257,040
5.88%,
11/15/24
..................
26,788
27,471,094
7.75%,
07/01/26
..................
31,474
34,601,257
DISH
Network
Corp.
(m)
:
2.38%,
03/15/24
..................
17,298
15,567,331
3.38%,
08/15/26
..................
24,335
22,339,446
Entercom
Media
Corp.,
6.50%,
05/01/27
(b)
...
12,966
11,280,420
GCI
LLC
(b)
:
6.63%,
06/15/24
..................
10,042
10,771,049
4.75%,
10/15/28
..................
6,216
6,293,762
Informa
plc,
2.13%,
10/06/25
...........
EUR
1,727
2,020,103
LCPR
Senior
Secured
Financing
DAC,
6.75%,
10/15/27
(b)
.....................
USD
35,950
37,567,750
Liberty
Broadband
Corp.,
2.75%,
09/30/50
(b)(m)
50,498
54,322,141
Meredith
Corp.,
6.88%,
02/01/26
........
3,766
3,144,610
Midcontinent
Communications,
5.38%,
08/15/27
(b)
.....................
8,651
8,888,903
Outfront
Media
Capital
LLC,
5.00%,
08/15/27
(b)
13,418
13,082,550
PFD
ADELPHIA,
Series
B,
10.50%,
07/15/04
(d)
(e)(k)
.........................
800
—
Quebecor
Media,
Inc.,
5.75%,
01/15/23
....
1,537
1,648,433
Radiate
Holdco
LLC
(b)
:
4.50%,
09/15/26
..................
44,256
44,246,706
6.50%,
09/15/28
..................
71,977
73,759,331
SES
SA
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
4.66%),
4.62%
EUR
300
355,692
(EUR
Swap
Annual
5
Year
+
5.40%),
5.62%
3,400
4,210,442
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
61
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Media
(continued)
Sirius
XM
Radio,
Inc.
(b)
:
4.63%,
07/15/24
..................
USD
3,230
$
3,341,031
5.38%,
07/15/26
..................
4,435
4,615,504
5.00%,
08/01/27
..................
25,176
26,245,980
5.50%,
07/01/29
..................
18,333
19,662,143
4.13%,
07/01/30
..................
26,870
27,373,813
Summer
BC
Holdco
A
SARL,
9.25%,
10/31/27
EUR
1,982
2,149,854
Summer
BC
Holdco
B
SARL,
5.75%,
10/31/26
5,500
6,320,795
Summer
BidCo
BV
(i)
:
9.00%,
(9.00%
Cash
or
9.75%
PIK),
11/15/25
.....................
1,165
1,319,857
9.00%,
(9.00%
Cash
or
9.75%
PIK),
11/15/25
(h)
....................
1,582
1,792,397
TEGNA,
Inc.
(b)
:
5.50%,
09/15/24
..................
USD
2,361
2,404,489
4.63%,
03/15/28
..................
446
436,099
Tele
Columbus
AG,
3.88%,
05/02/25
......
EUR
3,473
3,876,418
Telenet
Finance
Luxembourg
Notes
SARL,
5.50%,
03/01/28
(b)
................
USD
17,200
18,060,000
Terrier
Media
Buyer,
Inc.,
8.88%,
12/15/27
(b)
.
35,840
36,108,800
Univision
Communications,
Inc.
(b)
:
5.13%,
02/15/25
..................
8,403
7,961,842
6.63%,
06/01/27
..................
35,303
34,464,554
UPC
Holding
BV,
3.88%,
06/15/29
.......
EUR
100
113,562
UPCB
Finance
VII
Ltd.,
3.63%,
06/15/29
....
2,854
3,346,172
Videotron
Ltd.,
5.13%,
04/15/27
(b)
........
USD
869
914,188
Virgin
Media
Vendor
Financing
Notes
III
DAC,
4.88%,
07/15/28
.................
GBP
1,527
1,984,945
Virgin
Media
Vendor
Financing
Notes
IV
DAC,
5.00%,
07/15/28
(b)
................
USD
45,818
45,703,455
VZ
Vendor
Financing
BV,
2.50%,
01/31/24
..
EUR
2,962
3,403,341
Ziggo
Bond
Co.
BV
(b)
:
6.00%,
01/15/27
..................
USD
3,625
3,747,344
5.13%,
02/28/30
..................
14,336
14,512,333
Ziggo
BV:
4.25%,
01/15/27
..................
EUR
3,081
3,750,124
5.50%,
01/15/27
(b)
.................
USD
26,909
28,187,178
2.88%,
01/15/30
..................
EUR
1,018
1,163,715
4.88%,
01/15/30
(b)
.................
USD
3,994
4,133,790
1,322,001,662
Metals
&
Mining
—
2.4%
ArcelorMittal
SA,
4.25%,
07/16/29
........
654
688,214
Arconic
Corp.
(b)
:
6.00%,
05/15/25
..................
22,808
24,357,233
6.13%,
02/15/28
..................
8,216
8,436,805
Big
River
Steel
LLC,
6.63%,
01/31/29
(b)
....
55,341
55,958,052
Constellium
SE
(b)
:
5.75%,
05/15/24
..................
28,610
29,110,675
6.63%,
03/01/25
..................
23,173
23,708,876
5.88%,
02/15/26
..................
33,879
34,761,209
5.63%,
06/15/28
..................
18,362
18,742,093
Freeport-McMoRan,
Inc.:
4.55%,
11/14/24
..................
18,140
19,496,509
4.38%,
08/01/28
..................
29,647
30,653,664
4.63%,
08/01/30
..................
34,179
35,937,510
5.40%,
11/14/34
..................
6,466
7,153,012
5.45%,
03/15/43
..................
103,178
114,401,703
Joseph
T
Ryerson
&
Son,
Inc.,
8.50%,
08/01/28
(b)
.....................
10,196
10,731,290
Kaiser
Aluminum
Corp.
(b)
:
6.50%,
05/01/25
..................
6,715
6,921,755
4.63%,
03/01/28
..................
5,166
4,817,295
New
Gold,
Inc.
(b)
:
6.38%,
05/15/25
..................
12,300
12,699,750
7.50%,
07/15/27
..................
25,741
27,414,165
Security
Par
(000)
Value
Metals
&
Mining
(continued)
Novelis
Corp.
(b)
:
5.88%,
09/30/26
..................
USD
39,726
$
40,818,465
4.75%,
01/30/30
..................
38,886
38,194,607
thyssenkrupp
AG:
1.88%,
03/06/23
..................
EUR
1,147
1,254,699
2.88%,
02/22/24
..................
9,272
10,194,239
2.50%,
02/25/25
..................
200
215,154
United
States
Steel
Corp.,
12.00%,
06/01/25
(b)
USD
32,865
34,984,464
591,651,438
Mortgage
Real
Estate
Investment
Trusts
(REITs)
—
0.0%
Starwood
Property
Trust,
Inc.,
5.00%,
12/15/21
3,256
3,223,440
Multiline
Retail
—
0.4%
B&M
European
Value
Retail
SA,
3.63%,
07/15/25
......................
GBP
1,213
1,592,586
Macy's,
Inc.,
8.38%,
06/15/25
(b)
.........
USD
40,427
41,798,688
Marks
&
Spencer
plc,
4.50%,
07/10/27
(l)
....
GBP
3,400
4,347,530
Nordstrom,
Inc.,
8.75%,
05/15/25
(b)
.......
USD
48,699
53,366,987
101,105,791
Oil,
Gas
&
Consumable
Fuels
—
9.2%
Apache
Corp.:
4.88%,
11/15/27
..................
13,789
13,030,605
5.10%,
09/01/40
..................
2,125
1,903,203
5.25%,
02/01/42
..................
2,180
1,951,100
4.75%,
04/15/43
..................
17,226
15,320,374
4.25%,
01/15/44
..................
1,654
1,405,900
5.35%,
07/01/49
..................
5,923
5,227,047
Ascent
Resources
Utica
Holdings
LLC,
10.00%,
04/01/22
(b)
.....................
73,066
71,970,010
Baytex
Energy
Corp.,
8.75%,
04/01/27
(b)
....
15,350
6,926,687
BP
Capital
Markets
plc
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
3.88%),
3.25%
EUR
1,100
1,324,344
(U.K.
Government
Bonds
5
Year
Note
Generic
Bid
Yield
+
4.17%),
4.25%
....
GBP
1,475
1,993,671
Buckeye
Partners
LP:
4.13%,
03/01/25
(b)
.................
USD
1,622
1,540,900
3.95%,
12/01/26
..................
2,631
2,451,566
4.50%,
03/01/28
(b)
.................
6,121
5,899,114
5.85%,
11/15/43
..................
5,841
5,410,781
5.60%,
10/15/44
..................
8,956
7,943,658
Callon
Petroleum
Co.:
6.25%,
04/15/23
..................
15,656
5,009,920
6.13%,
10/01/24
..................
11,650
3,320,250
8.25%,
07/15/25
..................
15,782
4,261,140
6.38%,
07/01/26
..................
12,657
3,100,965
Cenovus
Energy,
Inc.:
3.00%,
08/15/22
..................
5,595
5,453,830
3.80%,
09/15/23
..................
3,180
3,071,844
5.38%,
07/15/25
..................
40,130
38,622,604
5.40%,
06/15/47
..................
2,330
1,968,495
Centennial
Resource
Production
LLC,
6.88%,
04/01/27
(b)
.....................
9,314
3,795,455
Cheniere
Energy
Partners
LP:
5.25%,
10/01/25
..................
868
887,964
5.63%,
10/01/26
..................
5,046
5,247,840
4.50%,
10/01/29
..................
33,234
34,090,440
Cheniere
Energy,
Inc.,
4.63%,
10/15/28
(b)
...
94,301
96,776,401
CITGO
Petroleum
Corp.,
7.00%,
06/15/25
(b)
..
18,761
18,503,036
CNX
Resources
Corp.,
7.25%,
03/14/27
(b)
...
21,053
21,474,060
Comstock
Resources,
Inc.:
7.50%,
05/15/25
(b)
.................
21,993
20,673,420
9.75%,
08/15/26
..................
35,968
36,912,271
Continental
Resources,
Inc.:
5.00%,
09/15/22
..................
19,349
19,205,430
4.50%,
04/15/23
..................
11,793
11,238,729
4.90%,
06/01/44
..................
16,264
12,249,557
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
62
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Crestwood
Midstream
Partners
LP:
6.25%,
04/01/23
(l)
.................
USD
7,097
$
6,938,098
5.63%,
05/01/27
(b)
.................
10,081
9,005,055
CrownRock
LP,
5.63%,
10/15/25
(b)
.......
56,203
52,971,327
CVR
Energy,
Inc.
(b)
:
5.25%,
02/15/25
..................
12,037
10,472,190
5.75%,
02/15/28
..................
4,096
3,481,600
DCP
Midstream
Operating
LP:
5.38%,
07/15/25
..................
12,978
13,381,356
5.63%,
07/15/27
..................
11,961
12,236,103
5.13%,
05/15/29
..................
9,524
9,381,140
6.45%,
11/03/36
(b)
.................
14,865
14,244,832
6.75%,
09/15/37
(b)
.................
13,525
12,984,000
Diamondback
Energy,
Inc.:
4.75%,
05/31/25
..................
8,675
9,358,051
3.50%,
12/01/29
..................
19,697
19,094,756
Endeavor
Energy
Resources
LP
(b)
:
6.63%,
07/15/25
..................
12,619
12,966,023
5.50%,
01/30/26
..................
38,367
38,079,247
5.75%,
01/30/28
..................
23,826
23,945,130
Energy
Transfer
Operating
LP:
4.95%,
06/15/28
..................
4,300
4,556,366
5.25%,
04/15/29
..................
4,400
4,723,871
3.75%,
05/15/30
..................
6,590
6,382,464
6.50%,
02/01/42
..................
16,965
17,770,272
6.00%,
06/15/48
..................
8,533
8,582,398
5.00%,
05/15/50
..................
25,437
23,552,305
EnLink
Midstream
LLC,
5.38%,
06/01/29
...
502
406,620
EnLink
Midstream
Partners
LP:
4.40%,
04/01/24
..................
14,993
13,493,700
4.15%,
06/01/25
..................
377
324,608
4.85%,
07/15/26
..................
1,948
1,685,234
5.60%,
04/01/44
..................
7,271
4,671,618
5.05%,
04/01/45
..................
1,306
829,310
EQM
Midstream
Partners
LP:
4.00%,
08/01/24
..................
5,000
4,893,675
6.00%,
07/01/25
(b)
.................
18,139
18,705,844
4.13%,
12/01/26
..................
1,685
1,605,780
6.50%,
07/01/27
(b)
.................
22,620
23,977,652
5.50%,
07/15/28
..................
9,013
9,076,542
EQT
Corp.:
7.88%,
02/01/25
(l)
.................
3,000
3,325,350
3.90%,
10/01/27
..................
21,853
20,118,418
8.75%,
02/01/30
(l)
.................
13,191
15,565,380
Extraction
Oil
&
Gas,
Inc.
(b)(d)(k)
:
7.38%,
05/15/24
..................
25,017
6,254,250
5.63%,
02/01/26
..................
22,123
5,530,750
Genesis
Energy
LP:
6.00%,
05/15/23
..................
8,289
7,522,267
5.63%,
06/15/24
..................
11,166
9,517,117
6.50%,
10/01/25
..................
355
307,075
7.75%,
02/01/28
..................
1,513
1,314,570
Great
Western
Petroleum
LLC,
9.00%,
09/30/21
(b)
.....................
23,178
13,501,185
Harvest
Midstream
I
LP,
7.50%,
09/01/28
(b)
..
20,765
20,661,175
Hess
Midstream
Operations
LP
(b)
:
5.63%,
02/15/26
..................
9,696
9,877,606
5.13%,
06/15/28
..................
3,833
3,825,794
Holly
Energy
Partners
LP,
5.00%,
02/01/28
(b)
.
11,011
10,735,725
Indigo
Natural
Resources
LLC,
6.88%,
02/15/26
(b)
.....................
26,988
26,266,881
Ithaca
Energy
North
Sea
plc,
9.38%,
07/15/24
(b)
3,275
3,045,750
Jagged
Peak
Energy
LLC,
5.88%,
05/01/26
..
2,000
1,990,000
Kinder
Morgan
Energy
Partners
LP:
4.70%,
11/01/42
..................
19,570
21,150,693
5.00%,
03/01/43
..................
7,000
7,799,687
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Kinder
Morgan,
Inc.,
5.55%,
06/01/45
.....
USD
6,120
$
7,265,016
Matador
Resources
Co.,
5.88%,
09/15/26
...
30,913
25,841,722
MEG
Energy
Corp.
(b)
:
7.00%,
03/31/24
..................
24,280
22,580,400
6.50%,
01/15/25
..................
24,771
24,298,369
7.13%,
02/01/27
..................
7,601
6,816,805
MPLX
LP:
2.65%,
08/15/30
..................
29,195
28,496,182
5.20%,
03/01/47
..................
6,671
7,273,693
4.70%,
04/15/48
..................
6,700
6,799,840
5.50%,
02/15/49
..................
12,223
13,727,954
Murphy
Oil
Corp.:
5.75%,
08/15/25
..................
6,527
5,693,992
6.37%,
12/01/42
(l)
.................
1,714
1,345,490
Neptune
Energy
Bondco
plc,
6.63%,
05/15/25
(b)
2,826
2,520,566
New
Fortress
Energy,
Inc.,
6.75%,
09/15/25
(b)
.
62,155
64,983,053
NGPL
PipeCo
LLC,
7.77%,
12/15/37
(b)
.....
12,239
15,579,063
NuStar
Logistics
LP:
5.75%,
10/01/25
..................
10,223
10,558,314
6.00%,
06/01/26
..................
6,462
6,480,223
Occidental
Petroleum
Corp.:
2.70%,
08/15/22
..................
25,343
23,679,739
2.70%,
02/15/23
..................
4,509
4,125,735
2.90%,
08/15/24
..................
17,550
14,889,947
3.20%,
08/15/26
..................
1,221
968,406
3.00%,
02/15/27
..................
400
313,698
7.20%,
03/15/29
..................
5,695
5,182,450
4.30%,
08/15/39
..................
27,765
19,245,587
6.20%,
03/15/40
..................
35,022
29,019,229
4.50%,
07/15/44
..................
16,520
11,822,125
4.63%,
06/15/45
..................
39,559
28,581,377
6.60%,
03/15/46
..................
3,328
2,866,240
4.40%,
04/15/46
..................
30,470
21,640,099
4.10%,
02/15/47
..................
4,297
2,900,905
4.20%,
03/15/48
..................
21,725
14,935,938
4.40%,
08/15/49
..................
14,073
9,852,577
Parkland
Corp.,
5.88%,
07/15/27
(b)
.......
11,300
11,879,125
Parsley
Energy
LLC
(b)
:
5.38%,
01/15/25
..................
9,784
9,759,540
5.25%,
08/15/25
..................
6,084
6,023,160
5.63%,
10/15/27
..................
1,691
1,682,545
4.13%,
02/15/28
..................
20,804
19,555,760
PBF
Holding
Co.
LLC,
9.25%,
05/15/25
(b)
...
44,783
45,903,471
PDC
Energy,
Inc.:
1.13%,
09/15/21
(m)
................
10,294
9,762,282
6.13%,
09/15/24
..................
9,909
9,438,323
6.25%,
12/01/25
..................
2,220
2,064,600
5.75%,
05/15/26
..................
18,264
16,959,037
Plains
All
American
Pipeline
LP:
3.55%,
12/15/29
..................
13,064
12,626,060
3.80%,
09/15/30
..................
12,255
11,883,454
6.65%,
01/15/37
..................
8,186
8,957,396
5.15%,
06/01/42
..................
3,791
3,577,988
4.30%,
01/31/43
..................
3,350
2,838,906
4.90%,
02/15/45
..................
6,605
6,028,017
QEP
Resources,
Inc.:
5.38%,
10/01/22
..................
19,076
15,642,320
5.25%,
05/01/23
..................
29,410
21,395,775
5.63%,
03/01/26
..................
11,441
6,492,768
Range
Resources
Corp.:
5.88%,
07/01/22
..................
1,521
1,475,370
5.00%,
08/15/22
..................
24,638
23,768,279
5.00%,
03/15/23
..................
12,930
12,283,500
Rattler
Midstream
LP,
5.63%,
07/15/25
(b)
....
15,781
15,899,358
Repsol
International
Finance
BV
(a)(j)
:
(EUR
Swap
Annual
5
Year
+
4.00%),
3.75%
EUR
1,250
1,472,943
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
63
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
(EUR
Swap
Annual
5
Year
+
4.41%),
4.25%
EUR
825
$
984,199
Sabine
Pass
Liquefaction
LLC,
4.50%,
05/15/30
(b)
.....................
USD
25,015
28,178,186
SM
Energy
Co.:
6.13%,
11/15/22
..................
2,667
2,074,846
10.00%,
01/15/25
(b)
................
43,494
41,319,300
Southwestern
Energy
Co.:
4.10%,
03/15/22
..................
18,800
18,565,000
7.50%,
04/01/26
..................
2,357
2,303,968
8.38%,
09/15/28
..................
6,835
6,716,139
Sunoco
Logistics
Partners
Operations
LP:
4.00%,
10/01/27
..................
15,655
15,997,759
5.30%,
04/01/44
..................
9,500
8,851,050
5.40%,
10/01/47
..................
11,828
11,167,606
Sunoco
LP:
4.88%,
01/15/23
..................
4,626
4,649,130
5.50%,
02/15/26
..................
1,578
1,576,027
6.00%,
04/15/27
..................
637
654,518
Tallgrass
Energy
Partners
LP
(b)
:
5.50%,
09/15/24
..................
4,987
4,687,780
7.50%,
10/01/25
..................
9,745
9,784,467
Targa
Resources
Partners
LP:
4.25%,
11/15/23
..................
6,631
6,564,690
5.13%,
02/01/25
..................
4,963
4,950,593
5.88%,
04/15/26
..................
12,267
12,594,529
5.38%,
02/01/27
..................
1,247
1,254,008
6.50%,
07/15/27
..................
11,294
11,773,995
5.00%,
01/15/28
..................
18,580
18,115,500
6.88%,
01/15/29
..................
14,223
15,214,343
5.50%,
03/01/30
(b)
.................
21,171
21,193,230
4.88%,
02/01/31
(b)
.................
20,789
20,132,587
TerraForm
Power
Operating
LLC
(b)
:
4.25%,
01/31/23
..................
13,671
14,011,134
5.00%,
01/31/28
..................
138
151,065
4.75%,
01/15/30
..................
16,093
17,018,348
UGI
International
LLC,
3.25%,
11/01/25
....
EUR
1,700
2,012,897
Viper
Energy
Partners
LP,
5.38%,
11/01/27
(b)
.
USD
12,031
11,850,535
Western
Midstream
Operating
LP:
4.00%,
07/01/22
..................
2,523
2,537,949
4.10%,
02/01/25
(l)
.................
4,568
4,351,020
3.95%,
06/01/25
..................
11,043
10,378,211
4.65%,
07/01/26
..................
7,758
7,544,655
4.75%,
08/15/28
..................
3,963
3,810,345
5.05%,
02/01/30
(l)
.................
5,026
4,891,630
5.45%,
04/01/44
..................
22,222
18,999,810
5.30%,
03/01/48
..................
27,114
21,826,770
5.50%,
08/15/48
..................
3,840
3,168,000
6.25%,
02/01/50
(l)
.................
27,548
25,516,335
Williams
Cos.,
Inc.
(The):
5.80%,
11/15/43
..................
19,570
22,951,864
5.10%,
09/15/45
..................
5,485
6,151,142
WPX
Energy,
Inc.:
8.25%,
08/01/23
..................
8,856
10,007,280
5.75%,
06/01/26
..................
7,872
8,147,520
5.25%,
10/15/27
..................
8,464
8,590,960
5.88%,
06/15/28
..................
12,214
12,763,630
4.50%,
01/15/30
..................
21,418
21,056,785
2,296,945,497
Paper
&
Forest
Products
—
0.1%
Boise
Cascade
Co.,
4.88%,
07/01/30
(b)
.....
9,465
10,174,875
Norbord,
Inc.,
6.25%,
04/15/23
(b)
.........
9,325
9,977,750
WEPA
Hygieneprodukte
GmbH,
(EURIBOR
3
Month
+
2.88%),
2.88%,
12/15/26
(a)
.....
EUR
837
958,128
21,110,753
Security
Par
(000)
Value
Personal
Products
—
0.1%
Coty,
Inc.:
4.00%,
04/15/23
..................
EUR
2,900
$
2,839,087
4.75%,
04/15/26
..................
1,700
1,543,547
Edgewell
Personal
Care
Co.,
5.50%,
06/01/28
(b)
USD
11,708
12,319,509
16,702,143
Pharmaceuticals
—
2.0%
Bausch
Health
Americas,
Inc.
(b)
:
9.25%,
04/01/26
..................
9,296
10,225,600
8.50%,
01/31/27
..................
55,971
61,498,136
Bausch
Health
Cos.,
Inc.:
5.50%,
03/01/23
(b)
.................
1,847
1,840,074
4.50%,
05/15/23
..................
EUR
22,371
25,983,954
5.88%,
05/15/23
(b)
.................
USD
489
486,555
6.13%,
04/15/25
(b)
.................
28,644
29,324,295
5.50%,
11/01/25
(b)
.................
15,833
16,248,616
9.00%,
12/15/25
(b)
.................
31,897
34,697,557
5.75%,
08/15/27
(b)
.................
18,173
19,286,096
7.00%,
01/15/28
(b)
.................
24,811
26,299,660
5.00%,
01/30/28
(b)
.................
8,674
8,424,622
6.25%,
02/15/29
(b)
.................
41,363
42,544,327
7.25%,
05/30/29
(b)
.................
21,116
22,752,490
5.25%,
01/30/30
(b)
.................
12,350
12,164,750
Catalent
Pharma
Solutions,
Inc.:
4.88%,
01/15/26
(b)
.................
16,224
16,548,480
5.00%,
07/15/27
(b)
.................
15,139
15,744,560
2.38%,
03/01/28
..................
EUR
6,615
7,445,527
Cheplapharm
Arzneimittel
GmbH,
3.50%,
02/11/27
......................
2,430
2,742,214
Diocle
Spa,
(EURIBOR
3
Month
+
3.88%),
3.87%,
06/30/26
(a)
................
810
932,833
Elanco
Animal
Health,
Inc.,
5.90%,
08/28/28
(l)
.
USD
5,904
6,819,120
Endo
DAC
(b)
:
9.50%,
07/31/27
..................
13,660
14,274,700
6.00%,
06/30/28
..................
8,414
6,184,290
Nidda
BondCo
GmbH:
5.00%,
09/30/25
..................
EUR
2,300
2,615,304
7.25%,
09/30/25
..................
2,899
3,449,917
Nidda
Healthcare
Holding
GmbH:
3.50%,
09/30/24
..................
3,731
4,237,583
Par
Pharmaceutical,
Inc.,
7.50%,
04/01/27
(b)
.
USD
81,396
85,276,961
Rossini
SARL,
6.75%,
10/30/25
.........
EUR
1,952
2,404,198
Teva
Pharmaceutical
Finance
Netherlands
II
BV:
6.00%,
01/31/25
..................
3,600
4,322,384
4.50%,
03/01/25
..................
1,600
1,824,332
1.88%,
03/31/27
..................
600
590,255
1.63%,
10/15/28
..................
500
462,202
Teva
Pharmaceutical
Finance
Netherlands
III
BV,
3.15%,
10/01/26
..............
USD
10,000
8,822,100
496,473,692
Professional
Services
—
0.5%
ASGN,
Inc.,
4.63%,
05/15/28
(b)
..........
5,000
5,020,600
Dun
&
Bradstreet
Corp.
(The)
(b)
:
6.88%,
08/15/26
..................
17,134
18,402,773
10.25%,
02/15/27
.................
20,604
23,282,520
Intertrust
Group
BV,
3.38%,
11/15/25
......
EUR
4,373
5,216,233
Jaguar
Holding
Co.
II/PPD
Development
LP
(b)
:
4.63%,
06/15/25
..................
USD
31,213
32,149,390
5.00%,
06/15/28
..................
34,002
35,489,588
119,561,104
Real
Estate
Management
&
Development
—
0.4%
ADLER
Real
Estate
AG:
1.50%,
04/17/22
..................
EUR
1,400
1,592,187
2.13%,
02/06/24
..................
500
562,776
3.00%,
04/27/26
..................
1,700
1,953,302
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
64
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Real
Estate
Management
&
Development
(continued)
ADO
Properties
SA,
3.25%,
08/05/25
......
EUR
2,800
$
3,308,703
Aroundtown
SA,
(EUR
Swap
Annual
5
Year
+
3.98%),
3.38%
(a)(j)
................
2,100
2,449,834
Citycon
OYJ,
(EUR
Swap
Annual
5
Year
+
4.71%),
4.50%
(a)(j)
................
1,700
1,733,886
Consus
Real
Estate
AG,
9.63%,
05/15/24
...
2,441
3,042,425
Cushman
&
Wakefield
US
Borrower
LLC,
6.75%,
05/15/28
(b)
................
USD
22,559
23,419,626
DEMIRE
Deutsche
Mittelstand
Real
Estate
AG,
1.88%,
10/15/24
.................
EUR
1,600
1,724,158
Five
Point
Operating
Co.
LP,
7.88%,
11/15/25
(b)
USD
8,725
8,720,638
Greystar
Real
Estate
Partners
LLC,
5.75%,
12/01/25
(b)
.....................
1,897
1,911,228
Heimstaden
Bostad
AB,
(EUR
Swap
Annual
5
Year
+
3.67%),
3.25%
(a)(j)
............
EUR
925
1,084,516
Howard
Hughes
Corp.
(The)
(b)
:
5.38%,
03/15/25
..................
USD
3,747
3,807,327
5.38%,
08/01/28
..................
22,025
22,013,767
Peach
Property
Finance
GmbH,
3.50%,
02/15/23
......................
EUR
1,163
1,353,769
Realogy
Group
LLC,
7.63%,
06/15/25
(b)
....
USD
8,964
9,389,790
Summit
Properties
Ltd.,
2.00%,
01/31/25
...
EUR
1,440
1,588,004
Unique
Pub
Finance
Co.
plc
(The),
Series
N,
6.46%,
03/30/32
(l)
................
GBP
3,266
3,984,975
93,640,911
Road
&
Rail
—
0.5%
Ashtead
Capital,
Inc.
(b)
:
5.25%,
08/01/26
..................
USD
1,100
1,159,125
4.00%,
05/01/28
..................
6,915
7,174,313
Loxam
SAS:
3.50%,
05/03/23
..................
EUR
2,100
2,400,591
4.25%,
04/15/24
..................
1,100
1,257,303
3.25%,
01/14/25
..................
1,631
1,806,288
3.75%,
07/15/26
..................
1,202
1,342,344
Rubis
Terminal
Infra
SAS,
5.63%,
05/15/25
..
2,843
3,436,607
Uber
Technologies,
Inc.
(b)
:
7.50%,
11/01/23
..................
USD
13,698
14,269,207
7.50%,
05/15/25
..................
44,543
47,464,575
8.00%,
11/01/26
..................
11,699
12,468,677
7.50%,
09/15/27
..................
28,057
30,020,990
6.25%,
01/15/28
..................
14,188
14,573,914
137,373,934
Semiconductors
&
Semiconductor
Equipment
—
1.1%
ams
AG,
6.00%,
07/31/25
.............
EUR
5,513
6,817,929
Broadcom,
Inc.:
5.00%,
04/15/30
..................
USD
75,724
89,323,824
4.30%,
11/15/32
..................
32,690
37,344,761
Entegris,
Inc.
(b)
:
4.63%,
02/10/26
..................
7,360
7,525,600
4.38%,
04/15/28
..................
12,192
12,527,280
Infineon
Technologies
AG,
(EUR
Swap
Annual
5
Year
+
3.39%),
2.88%
(a)(j)
............
EUR
2,000
2,327,313
Microchip
Technology,
Inc.,
4.25%,
09/01/25
(b)
USD
59,000
61,215,969
ON
Semiconductor
Corp.,
3.88%,
09/01/28
(b)
.
22,231
22,543,902
Qorvo,
Inc.:
5.50%,
07/15/26
..................
157
166,508
3.38%,
04/01/31
(b)
.................
24,964
25,369,665
Sensata
Technologies
UK
Financing
Co.
plc,
6.25%,
02/15/26
(b)
................
5,060
5,300,350
270,463,101
Software
—
3.3%
ACI
Worldwide,
Inc.,
5.75%,
08/15/26
(b)
....
38,263
40,408,024
Ascend
Learning
LLC:
6.88%,
08/01/25
(b)
.................
42,124
42,996,671
Security
Par
(000)
Value
Software
(continued)
Boxer
Parent
Co.,
Inc.:
6.50%,
10/02/25
..................
EUR
5,621
$
6,795,433
7.13%,
10/02/25
(b)
.................
USD
31,158
33,278,613
9.13%,
03/01/26
(b)
.................
42,315
44,853,900
BY
Crown
Parent
LLC
(b)
:
7.38%,
10/15/24
..................
33,509
34,011,635
4.25%,
01/31/26
..................
37,979
38,667,369
Camelot
Finance
SA,
4.50%,
11/01/26
(b)
....
31,708
32,342,160
Castle
US
Holding
Corp.,
9.50%,
02/15/28
(b)
.
16,748
15,973,405
CDK
Global,
Inc.:
4.88%,
06/01/27
..................
23,914
25,169,485
5.25%,
05/15/29
(b)
.................
2,926
3,116,190
Change
Healthcare
Holdings
LLC,
5.75%,
03/01/25
(b)
.....................
68,086
69,059,630
Fair
Isaac
Corp.,
4.00%,
06/15/28
(b)
.......
5,403
5,571,844
Genesys
Telecommunications
Laboratories,
Inc.,
10.00%,
11/30/24
(b)
............
61,026
64,626,534
Nuance
Communications,
Inc.,
5.63%,
12/15/26
6,349
6,698,195
Open
Text
Corp.,
3.88%,
02/15/28
(b)
......
28,327
28,654,460
Open
Text
Holdings,
Inc.,
4.13%,
02/15/30
(b)
.
19,368
19,918,826
PTC,
Inc.
(b)
:
3.63%,
02/15/25
..................
14,651
14,870,765
4.00%,
02/15/28
..................
7,643
7,855,666
Solera
LLC,
10.50%,
03/01/24
(b)
.........
120,694
126,125,230
Sophia
LP,
9.00%,
09/30/23
(b)
..........
18,579
18,590,147
SS&C
Technologies,
Inc.,
5.50%,
09/30/27
(b)
.
86,317
91,730,802
Veritas
US,
Inc.,
7.50%,
09/01/25
(b)
.......
40,430
41,693,438
813,008,422
Specialty
Retail
—
1.2%
Asbury
Automotive
Group,
Inc.
(b)
:
4.50%,
03/01/28
..................
7,004
7,047,775
4.75%,
03/01/30
..................
4,457
4,490,427
Douglas
GmbH,
6.25%,
07/15/22
........
EUR
500
536,396
Dufry
One
BV:
2.50%,
10/15/24
..................
1,000
1,012,223
2.00%,
02/15/27
..................
2,943
2,866,520
eG
Global
Finance
plc:
4.38%,
02/07/25
..................
817
905,208
6.75%,
02/07/25
(b)
.................
USD
11,810
12,090,487
6.25%,
10/30/25
..................
EUR
6,309
7,363,701
8.50%,
10/30/25
(b)
.................
USD
12,676
13,341,490
Gap,
Inc.
(The),
8.88%,
05/15/27
(b)
.......
10,060
11,443,250
Group
1
Automotive,
Inc.,
4.00%,
08/15/28
(b)
.
11,337
11,138,602
Ken
Garff
Automotive
LLC,
4.88%,
09/15/28
(b)
9,662
9,504,993
L
Brands,
Inc.:
6.88%,
07/01/25
(b)
.................
27,372
29,561,760
6.63%,
10/01/30
(b)
.................
10,188
10,366,290
6.88%,
11/01/35
..................
18,575
18,302,040
6.75%,
07/01/36
..................
3,311
3,244,780
Matalan
Finance
plc,
6.75%,
01/31/23
.....
GBP
100
85,163
Michaels
Stores,
Inc.,
4.75%,
10/01/27
(b)
....
USD
11,136
11,038,560
Murphy
Oil
USA,
Inc.,
4.75%,
09/15/29
.....
6,154
6,554,010
Penske
Automotive
Group,
Inc.:
3.50%,
09/01/25
..................
16,036
15,970,653
5.50%,
05/15/26
..................
2,732
2,818,277
PetSmart,
Inc.
(b)
:
7.13%,
03/15/23
..................
22,628
22,825,995
5.88%,
06/01/25
..................
24,437
25,013,713
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
(b)
................
23,306
23,713,855
SRS
Distribution,
Inc.,
8.25%,
07/01/26
(b)
...
26,477
28,264,198
Staples,
Inc.,
7.50%,
04/15/26
(b)
.........
24,814
22,932,106
Tendam
Brands
SAU:
5.00%,
09/15/24
..................
EUR
546
524,809
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
65
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Specialty
Retail
(continued)
(EURIBOR
3
Month
+
5.25%),
5.25%,
09/15/24
(a)
....................
EUR
364
$
346,163
303,303,444
Technology
Hardware,
Storage
&
Peripherals
—
0.3%
Dell
International
LLC,
7.13%,
06/15/24
(b)
...
USD
1,181
1,228,464
Diebold
Nixdorf,
Inc.,
9.38%,
07/15/25
(b)
....
8,326
8,783,930
Hurricane
Finance
plc,
8.00%,
10/15/25
....
GBP
1,512
2,033,147
NCR
Corp.
(b)
:
8.13%,
04/15/25
..................
USD
5,816
6,428,134
5.75%,
09/01/27
..................
4,998
5,225,359
5.00%,
10/01/28
..................
7,692
7,698,154
6.13%,
09/01/29
..................
9,012
9,542,987
5.25%,
10/01/30
..................
6,891
6,891,000
Seagate
HDD
Cayman,
4.13%,
01/15/31
(b)
..
5,100
5,503,880
Xerox
Corp.,
4.80%,
03/01/35
..........
11,712
11,184,960
64,520,015
Textiles,
Apparel
&
Luxury
Goods
—
0.2%
European
TopSoho
SARL,
Series
SMCP,
4.00%,
09/21/21
(m)
................
EUR
2,700
1,385,748
Hanesbrands,
Inc.,
5.38%,
05/15/25
(b)
.....
USD
7,966
8,404,130
Levi
Strauss
&
Co.,
5.00%,
05/01/25
......
16,277
16,653,406
William
Carter
Co.
(The)
(b)
:
5.50%,
05/15/25
..................
4,554
4,770,315
5.63%,
03/15/27
..................
2,686
2,803,512
Wolverine
World
Wide,
Inc.,
6.38%,
05/15/25
(b)
4,722
4,981,710
38,998,821
Thrifts
&
Mortgage
Finance
—
0.3%
Deutsche
Pfandbriefbank
AG,
4.60%,
02/22/27
EUR
700
828,802
Genworth
Mortgage
Holdings,
Inc.,
6.50%,
08/15/25
(b)
.....................
USD
28,171
29,430,244
Ladder
Capital
Finance
Holdings
LLLP,
4.25%,
02/01/27
(b)
.....................
18,966
16,405,590
MGIC
Investment
Corp.,
5.25%,
08/15/28
...
13,726
14,157,340
Nationstar
Mortgage
Holdings,
Inc.
(b)
:
6.00%,
01/15/27
..................
9,048
9,223,169
5.50%,
08/15/28
..................
16,070
16,049,913
86,095,058
Trading
Companies
&
Distributors
—
0.9%
Fortress
Transportation
and
Infrastructure
Investors
LLC,
9.75%,
08/01/27
(b)
......
3,399
3,639,054
HD
Supply,
Inc.,
5.38%,
10/15/26
(b)
.......
84,085
87,956,273
Herc
Holdings,
Inc.,
5.50%,
07/15/27
(b)
.....
19,055
19,715,256
United
Rentals
North
America,
Inc.:
4.63%,
10/15/25
..................
4,491
4,592,048
5.88%,
09/15/26
..................
3,504
3,692,340
3.88%,
11/15/27
..................
4,010
4,130,300
4.88%,
01/15/28
..................
1,500
1,575,000
5.25%,
01/15/30
..................
2,941
3,209,366
4.00%,
07/15/30
..................
10,444
10,705,100
WESCO
Distribution,
Inc.
(b)
:
7.13%,
06/15/25
..................
42,265
46,039,265
7.25%,
06/15/28
..................
40,673
44,564,389
229,818,391
Transportation
Infrastructure
—
0.0%
Autostrade
per
l'Italia
SpA:
6.25%,
06/09/22
..................
GBP
600
815,674
5.88%,
06/09/24
..................
EUR
3,600
4,685,110
4.38%,
09/16/25
..................
500
635,632
1.88%,
11/04/25
..................
700
786,769
1.75%,
06/26/26
..................
500
553,087
1.75%,
02/01/27
..................
1,700
1,867,097
9,343,369
Security
Par
(000)
Value
Wireless
Telecommunication
Services
—
1.5%
Connect
Finco
SARL,
6.75%,
10/01/26
(b)
....
USD
127,925
$
128,327,964
Gogo
Intermediate
Holdings
LLC,
9.88%,
05/01/24
(b)
.....................
1,133
1,211,177
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
......................
3,334
3,544,575
Matterhorn
Telecom
SA:
2.63%,
09/15/24
..................
EUR
300
342,203
4.00%,
11/15/27
..................
3,940
4,550,161
PPF
Telecom
Group
BV,
3.25%,
09/29/27
...
2,775
3,237,606
SoftBank
Group
Corp.:
4.00%,
04/20/23
..................
5,441
6,589,817
(USD
Swap
Rate
5
Year
+
4.23%),
6.00%
(a)
(j)
...........................
USD
4,600
4,232,000
4.75%,
09/19/24
..................
3,300
3,341,250
4.50%,
04/20/25
..................
EUR
1,400
1,720,711
4.75%,
07/30/25
..................
1,409
1,759,361
3.13%,
09/19/25
..................
3,200
3,717,653
5.00%,
04/15/28
..................
2,896
3,592,764
4.00%,
09/19/29
..................
2,900
3,398,895
Sprint
Corp.:
7.88%,
09/15/23
..................
USD
31,776
36,502,680
7.13%,
06/15/24
..................
23,813
27,399,476
7.63%,
02/15/25
..................
13,186
15,427,620
7.63%,
03/01/26
..................
35,073
42,381,687
Telefonica
Europe
BV
(a)(j)
:
(EUR
Swap
Annual
10
Year
+
4.30%),
5.87%
.......................
EUR
100
128,911
(EUR
Swap
Annual
10
Year
+
4.30%),
5.87%
.......................
4,600
5,929,933
(EUR
Swap
Annual
6
Year
+
4.11%),
4.37%
4,000
4,938,172
(EUR
Swap
Annual
8
Year
+
2.97%),
3.87%
3,500
4,188,946
T-Mobile
USA,
Inc.:
6.00%,
04/15/24
..................
USD
1,489
1,520,180
5.13%,
04/15/25
..................
866
884,939
6.50%,
01/15/26
..................
3,360
3,511,200
4.50%,
02/01/26
..................
10,809
11,137,594
4.75%,
02/01/28
..................
15,507
16,588,458
Vmed
O2
UK
Financing
I
plc,
3.25%,
01/31/31
EUR
2,726
3,176,123
Vodafone
Group
plc
(a)
:
(EUR
Swap
Annual
5
Year
+
3.43%),
4.20%,
10/03/78
.....................
1,700
2,179,865
(USD
Swap
Semi
5
Year
+
3.05%),
6.25%,
10/03/78
.....................
USD
4,000
4,315,000
(EUR
Swap
Annual
5
Year
+
2.67%),
3.10%,
01/03/79
.....................
EUR
4,600
5,480,911
VTR
Comunicaciones
SpA,
5.13%,
01/15/28
(b)
USD
14,343
14,781,807
370,039,639
Total
Corporate
Bonds
—
82.8%
(Cost:
$19,865,113,408)
............................
20,582,180,317
Floating
Rate
Loan
Interests
—
7.9%
Aerospace
&
Defense
—
0.1%
(h)
Sequa
Mezzanine
Holdings
LLC,
1st
Lien
Term
Loan,
11/28/23
(n)
..................
10,504
9,939,202
Spirit
Aerosystems,
Inc.,
Term
Loan,
0.00%, 01/30/25
(e)
.................
14,286
14,250,285
24,189,487
Airlines
—
0.1%
(h)
JetBlue
Airways
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%, 06/17/24
..
4,346
4,308,873
SkyMiles
IP
Ltd.,
Term
Loan,
10/20/27
(n)
.....
23,672
23,828,472
28,137,345
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
66
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Auto
Components
—
0.1%
Clarios
Global
LP,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 04/30/26
(h)
USD
14,093
$
13,709,998
Automobiles
—
0.0%
Dealer
Tire
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 01/01/38
(h)
.....
4,065
3,963,648
Building
Products
—
0.0%
CPG
International
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
4.75%, 05/05/24
(h)
4,776
4,755,637
Capital
Markets
—
0.0%
Jefferies
Finance
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.44%, 06/03/26
(e)(h)
...
5,614
5,375,464
Chemicals
—
0.5%
(h)
Alpha
3
BV,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 01/31/24
......
78,419
77,079,584
Ascend
Performance
Materials
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%, 08/27/26
..................
20,146
20,061,503
Illuminate
Buyer
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.31%, 06/30/27
.....
20,532
20,339,615
Invictus
US
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
6.75%),
6.91%, 03/30/26
..
2,582
2,402,858
Momentive
Performance
Materials,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.41%, 05/15/24
.............
6,004
5,737,695
Nouryon
Finance
BV,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 10/01/25
.....
2,487
2,404,447
128,025,702
Commercial
Services
&
Supplies
—
0.6%
(h)
Advanced
Disposal
Services,
Inc.,
Term
Loan,
(LIBOR
USD
1
Week
+
2.25%),
3.00%, 11/10/23
..................
2,044
2,039,063
Allied
Universal
Holdco
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 07/10/26
..................
1,990
1,965,817
Brand
Energy
&
Infrastructure
Services,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.25%),
5.25%, 06/21/24
..................
98,636
91,591,987
Capri
Acquisitions
Bidco
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.26%, 11/01/24
..................
5,339
5,330,177
Diamond
(BC)
BV,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.26%, 09/06/24
......
36,147
33,707,305
GFL
Environmental,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 05/30/25
..
8,737
8,688,691
KAR
Auction
Services,
Inc.,
Term
Loan
B6,
(LIBOR
USD
1
Month
+
2.25%),
2.44%, 09/19/26
(e)
.................
2,806
2,701,250
Tempo
Acquisition
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.75%, 11/02/26
..
1,462
1,416,231
147,440,521
Construction
&
Engineering
—
0.1%
SRS
Distribution,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 05/23/25
(h)
....
17,831
17,326,948
Construction
Materials
—
0.0%
(h)
Core
&
Main
LP,
Term
Loan,
(LIBOR
USD
3
Month
+
2.75%),
3.75%, 08/01/24
......
5,454
5,333,119
Forterra
Finance
LLC,
Term
Loan,
10/25/23
(n)
.
7,005
6,924,290
12,257,409
Security
Par
(000)
Value
Containers
&
Packaging
—
0.1%
(h)
BWAY
Holding
Co.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.25%),
3.52%, 04/03/24
......
USD
15,552
$
14,570,118
Charter
NEX
US,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 05/16/24
..................
4,201
4,091,741
18,661,859
Diversified
Consumer
Services
—
0.1%
(h)
Amentum
Government
Services
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 01/29/27
.............
3,523
3,462,994
Mileage
Plus
Holdings
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
5.25%),
6.25%, 06/21/27
..
13,311
13,518,119
Sotheby's,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
5.50%),
6.50%, 01/15/27
......
6,863
6,820,202
TierPoint
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 05/06/24
..
6,781
6,580,585
30,381,900
Diversified
Financial
Services
—
0.2%
(h)
Advisor
Group
Holdings,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
5.00%),
5.15%, 07/31/26
..................
5,219
5,041,708
Connect
Finco
SARL,
Term
Loan,
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 12/11/26
.....
8,789
8,508,500
Deerfield
Dakota
Holding
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
4.75%, 04/09/27
..................
4,562
4,528,697
Lealand
Finance
Co.
BV,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.16%, 06/28/24
(e)
758
651,679
Milano
Acquisition
Corp.,
Term
Loan
B,
08/17/27
(n)
......................
35,890
35,441,375
VS
Buyer
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 02/28/27
......
3,950
3,874,426
58,046,385
Diversified
Telecommunication
Services
—
1.0%
(h)
Altice
Financing
SA,
Term
Loan,
07/15/25
(n)
..
2,645
2,520,851
Altice
France
SA,
Term
Loan
B13,
(LIBOR
USD
1
Month
+
4.00%),
4.15%, 08/14/26
.....
8,530
8,269,039
Frontier
Communications
Corp.,
Term
Loan
B1,
(LIBOR
USD
3
Month
+
2.75%),
6.00%, 06/15/24
..................
102,878
100,977,865
Ligado
Networks
LLC,
Term
Loan:
(LIBOR
USD
3
Month
+
0.00%),
0.00%, 12/07/20
(d)(k)
..............
15,897
14,400,760
(LIBOR
USD
6
Month
+
12.50%),
0.00%, 07/12/21
................
72,220
32,968,330
Northwest
Fiber
LLC,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
5.50%),
5.66%, 04/30/27
..................
14,968
14,930,566
Zayo
Group
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 03/09/27
..
69,757
67,602,652
241,670,063
Entertainment
—
0.0%
Renaissance
Holding
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 05/30/25
(h)
.................
288
277,137
Food
Products
—
0.1%
Chobani
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.50%),
4.50%, 10/10/23
(h)
....
20,950
20,688,534
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
67
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Health
Care
Equipment
&
Supplies
—
0.1%
(h)
Ortho-Clinical
Diagnostics,
Inc.,
Term
Loan,
(EURIBOR
3
Month
+
3.50%),
3.50%, 06/30/25
..................
EUR
8,955
$
10,066,194
Sotera
Health
Holdings
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.50%),
5.50%, 12/11/26
..................
USD
25,351
25,224,720
35,290,914
Health
Care
Providers
&
Services
—
0.3%
(h)
AHP
Health
Partners,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.50%),
5.50%, 06/30/25
..
6,705
6,690,778
Azalea
TopCo,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.76%, 07/24/26
..
8,306
7,979,055
Envision
Healthcare
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.91%, 10/10/25
..
32,978
23,714,590
Gentiva
Health
Services,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.25%),
3.44%, 07/02/25
..................
8,709
8,518,618
LifePoint
Health,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 11/16/25
..................
6,123
5,939,465
Ortho-Clinical
Diagnostics,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.41%, 06/30/25
..................
7,437
7,105,712
Quorum
Health
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
8.25%),
9.25%, 04/29/25
.....
9,490
8,789,867
Surgery
Center
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
8.00%),
9.00%, 09/03/24
..................
1,128
1,138,203
WCG
Purchaser
Corp.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.24%, 01/08/27
..................
9,975
9,842,033
79,718,321
Hotels,
Restaurants
&
Leisure
—
0.1%
(h)
Flutter
Entertainment
plc,
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
3.72%, 07/10/25
..
4,260
4,245,657
Golden
Nugget
Online
Gaming,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
12.00%),
13.00%, 10/04/23
(e)
................
3,252
3,675,047
Golden
Nugget,
Inc.,
Term
Loan
B,
(LIBOR
USD
2
Month
+
2.50%),
3.25%, 10/04/23
..
18,315
16,281,057
24,201,761
Independent
Power
and
Renewable
Electricity
Producers
—
0.0%
Calpine
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.00%),
2.15%, 08/12/26
(h)
.....
846
820,434
Industrial
Conglomerates
—
0.1%
(h)
AVSC
Holding
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.25%),
8.25%, 09/01/25
..................
15,568
4,242,356
Vertiv
Group
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.16%, 03/02/27
......
18,490
18,175,754
22,418,110
Insurance
—
0.4%
(h)
Alliant
Holdings
Intermediate
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 05/09/25
..................
5,429
5,265,476
Asurion
LLC,
2nd
Lien
Term
Loan
B2,
(LIBOR
USD
1
Month
+
6.50%),
6.65%, 08/04/25
..
21,598
21,602,142
Asurion
LLC,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 08/04/22
......
3,501
3,456,775
HUB
International
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
5.00%, 04/25/25
..
8,829
8,787,993
Ryan
Specialty
Group
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
4.00%, 09/01/27
..
14,153
14,002,695
Security
Par
(000)
Value
Insurance
(continued)
Sedgwick
Claims
Management
Services,
Inc.,
Term
Loan:
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 12/31/25
................
USD
20,028
$
19,289,972
(LIBOR
USD
1
Month
+
4.00%),
4.15%, 09/03/26
................
11,957
11,764,267
(LIBOR
USD
1
Month
+
4.25%),
5.25%, 09/03/26
................
22,813
22,613,213
106,782,533
Interactive
Media
&
Services
—
0.0%
Camelot
U.S.
Acquisition
1
Co.,
Term
Loan,
10/30/26
(h)(n)
.....................
9,592
9,540,011
IT
Services
—
1.5%
(h)
Airbnb,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.50%),
8.50%, 04/17/25
......
4,263
4,583,064
Boxer
Parent
Co.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 10/02/25
..
22,181
21,480,719
Camelot
US
Acquisition
1
Co.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 10/30/26
..................
8,847
8,667,460
CCC
Information
Services,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 04/29/24
..................
2,120
2,101,890
Epicor
Software
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.75%),
8.75%, 07/31/28
..................
6,927
7,100,175
Epicor
Software
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.25%),
5.25%, 07/30/27
..
19,257
19,211,380
Greeneden
US
Holdings
I
LLC,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 12/01/23
..................
12,450
12,408,705
Mitchell
International,
Inc.,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 11/29/24
..................
6,559
6,256,556
Mitchell
International,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.25%),
7.40%, 12/01/25
..................
5,095
4,817,760
Peak
10
Holding
Corp.,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.25%),
7.50%, 08/01/25
..................
3,818
2,243,150
Pug
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.50%),
3.66%, 02/12/27
(e)
...........
9,335
8,199,644
Rackspace
Technology
Global,
Inc.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.00%),
4.00%, 11/03/23
.............
13,082
12,818,742
Solera
LLC,
Term
Loan,
(LIBOR
USD
2
Month
+
2.75%),
2.94%, 03/03/23
...........
10,802
10,564,555
Sophia
LP,
Term
Loan
B,
(LIBOR
USD
1
Month
+
3.25%),
4.25%, 09/30/22
...........
1,041
1,035,614
Sophia
LP.,
2nd
Lien
Term
Loan,
10/07/28
(n)
..
61,702
60,159,450
Sophia
LP.,
Term
Loan,
09/23/27
(n)
........
48,537
48,185,107
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/16/25
..................
3,019
2,918,735
Veritas
US,
Inc.,
Term
Loan
B,
09/01/25
(n)
...
68,212
66,677,369
Verscend
Holding
Corp.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.50%),
4.65%, 08/27/25
..
69,317
68,537,317
367,967,392
Life
Sciences
Tools
&
Services
—
0.1%
Parexel
International
Corp.,
Term
Loan,
(LIBOR
USD
1
Month
+
2.75%),
2.90%, 09/27/24
(h)
16,112
15,437,391
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
68
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Machinery
—
0.3%
(h)
Ingersoll-Rand
Services
Co.,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
1.75%),
1.91%, 03/01/27
..................
USD
4,481
$
4,325,883
MHI
Holdings
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
5.00%),
5.15%, 09/21/26
(e)
.....
11,027
10,971,541
Titan
Acquisition
Ltd.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.00%),
3.36%, 03/28/25
.....
52,215
49,196,231
64,493,655
Media
—
1.0%
Ascend
Learning
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 07/12/24
(h)
....
5,915
5,826,144
Clear
Channel
Outdoor
Holdings,
Inc.,
Term
Loan
B,
08/21/26
(h)(n)
................
54,487
49,460,175
Intelsat
Jackson
Holdings
SA,
Facility
Term
Loan,
07/13/22
(h)(n)
.................
22,059
22,408,620
Intelsat
Jackson
Holdings
SA,
Term
Loan
B3,
(LIBOR
USD
1
Month
+
4.75%),
8.00%, 11/27/23
(h)
.................
29,487
29,589,234
Intelsat
Jackson
Holdings
SA,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
5.50%),
8.75%, 01/02/24
(h)
.................
17,838
17,949,078
Intelsat
Jackson
Holdings
SA,
Term
Loan
B5,
8.63%, 01/02/24
(o)
.................
84,234
83,391,816
Learfield
Communications
LLC,
1st
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
4.25%, 12/01/23
(h)
.................
3,935
3,333,096
Promotora
de
Informaciones
SA,
Term
Loan:
(h)
(EURIBOR
6
Month
+
4.50%),
4.50%, 11/30/22
................
EUR
28
30,090
(EURIBOR
6
Month
+
4.50%),
4.50%, 12/31/22
................
423
441,553
Radiate
HoldCo
LLC,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.25%),
4.25%, 09/25/26
(h)
USD
2,371
2,326,440
Terrier
Media
Buyer,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.25%),
4.40%, 01/01/38
(h)
7,081
6,896,585
Xplornet
Communications,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
4.75%),
4.90%, 12/31/28
(h)
.................
20,280
19,861,995
241,514,826
Oil,
Gas
&
Consumable
Fuels
—
0.1%
(h)
Chesapeake
Energy
Corp.,
Term
Loan
A,
06/24/24
(d)(e)(k)(n)
...................
33,307
22,648,749
CONSOL
Energy,
Inc.,
Term
Loan
B,
(LIBOR
USD
1
Month
+
4.50%),
4.65%, 09/27/24
..
7,129
5,685,225
28,333,974
Pharmaceuticals
—
0.1%
(h)
Bausch
Health
Cos.,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.00%),
3.15%, 06/02/25
..
7,786
7,621,949
Endo
Luxembourg
Finance
Co.
I
SARL,
Term
Loan,
(LIBOR
USD
3
Month
+
4.25%),
5.00%, 04/29/24
..................
12,187
11,577,717
Jaguar
Holding
Co.
I
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
2.50%),
3.50%, 08/18/22
..
10,938
10,888,642
30,088,308
Professional
Services
—
0.1%
Dun
&
Bradstreet
Corp.
(The),
Term
Loan,
(LIBOR
USD
1
Month
+
3.75%),
3.89%, 02/06/26
(h)
.................
25,380
25,088,105
Road
&
Rail
—
0.0%
Uber
Technologies,
Inc.,
Term
Loan:
(h)
(LIBOR
USD
1
Month
+
3.50%),
3.65%, 07/13/23
................
3,455
3,392,028
Security
Par
(000)
Value
Road
&
Rail
(continued)
(LIBOR
USD
1
Month
+
4.00%),
5.00%, 04/04/25
................
USD
3,482
$
3,450,423
6,842,451
Software
—
0.4%
(h)
BY
Crown
Parent
LLC,
Term
Loan
B1,
(LIBOR
USD
1
Month
+
3.00%),
4.00%, 02/02/26
..
4,852
4,785,298
Castle
US
Holding
Corp.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.75%),
3.97%, 01/29/27
..
11,304
10,841,496
Informatica
LLC,
2nd
Lien
Term
Loan,
(LIBOR
USD
3
Month
+
7.13%),
7.13%, 02/25/25
..
23,229
23,558,155
Informatica
LLC,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 02/25/27
......
10,728
10,478,340
Omnitracs
LLC,
2nd
Lien
Term
Loan,
10/23/28
(n)
4,119
4,052,066
Refinitiv
US
Holdings,
Inc.,
Term
Loan,
(LIBOR
USD
1
Month
+
3.25%),
3.40%, 10/01/25
..
10,009
9,899,632
SS&C
Technologies
Holdings,
Inc.,
Term
Loan
B4,
(LIBOR
USD
1
Month
+
1.75%),
1.90%, 04/16/25
..................
1,721
1,663,496
TIBCO
Software,
Inc.,
2nd
Lien
Term
Loan,
(LIBOR
USD
1
Month
+
7.25%),
7.40%, 03/03/28
..................
18,473
18,011,175
Ultimate
Software
Group,
Inc.
(The),
1st
Lien
Term
Loan:
(LIBOR
USD
1
Month
+
3.75%),
3.90%, 05/04/26
................
5,433
5,380,431
(LIBOR
USD
3
Month
+
4.00%),
4.75%, 05/04/26
................
14,928
14,873,961
103,544,050
Specialty
Retail
—
0.2%
PetSmart,
Inc.,
Term
Loan,
(LIBOR
USD
3
Month
+
3.50%),
4.50%, 03/11/22
(h)
......
39,314
39,194,185
Wireless
Telecommunication
Services
—
0.1%
Digicel
International
Finance
Ltd.,
1st
Lien
Term
Loan
B,
(LIBOR
USD
3
Month
+
3.25%),
3.80%, 05/27/24
(h)
.................
15,972
13,985,988
Total
Floating
Rate
Loan
Interests
—
7.9%
(Cost:
$2,049,818,833)
............................
1,970,170,446
Foreign
Agency
Obligations
—
0.1%
France
—
0.1%
Electricite
de
France
SA
(a)(j)
:
(EUR
Swap
Annual
6
Year
+
3.44%),
4.00%
EUR
4,400
5,384,456
(GBP
Swap
13
Year
+
3.96%),
6.00%
....
GBP
4,100
5,697,058
(EUR
Swap
Annual
5
Year
+
3.37%),
2.88%
EUR
1,200
1,372,540
(EUR
Swap
Annual
5
Year
+
3.20%),
3.00%
400
457,251
12,911,305
Italy
—
0.0%
Banca
Monte
dei
Paschi
di
Siena
SpA:
3.63%,
09/24/24
..................
400
481,780
2.63%,
04/28/25
..................
2,450
2,840,187
(EUR
Swap
Annual
5
Year
+
8.92%),
8.50%,
09/10/30
(a)
....................
1,175
1,325,968
4,647,935
Total
Foreign
Agency
Obligations
—
0.1%
(Cost:
$16,963,666)
...............................
17,559,240
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
69
(Percentages
shown
are
based
on
Net
Assets)
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Security
Shares
Value
Investment
Companies
—
4.7%
iShares
Broad
USD
High
Yield
Corporate
Bond
ETF
(f)*
.........................
4,082,695
$
161,143,972
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
(f)*
.........................
2,696,000
226,194,400
iShares
Preferred
&
Income
Securities
ETF
(f)*
.
8,600,000
313,470,000
SPDR
Bloomberg
Barclays
High
Yield
Bond
ETF
...........................
2,700,000
281,529,000
SPDR
Bloomberg
Barclays
Short
Term
High
Yield
Bond
ETF
...................
3,985,000
103,091,950
Xtrackers
USD
High
Yield
Corporate
Bond
ETF
(f)
..........................
2,000,000
96,200,000
Total
Investment
Companies
—
4.7%
(Cost:
$1,149,123,884)
............................
1,181,629,322
Beneficial
Interest
(000)
Other
Interests
—
0.0%
(p)
Capital
Markets
—
0.0%
(e)
Lehman
Brothers
Holdings
Capital
Trust
Escrow
Bonds
(d)(k)
.......................
USD
11,550
121,275
Lehman
Brothers
Holdings
Capital
Trust
VII
Escrow
Bonds
(h)
...................
5,500
57,750
Lehman
Brothers
Holdings
Capital
Trust
VII
Escrow
Bonds
....................
1,000
10,500
Lehman
Brothers
Holdings,
Inc.
(d)(k)
........
5,675
59,587
249,112
Independent
Power
and
Renewable
Electricity
Producers
—
0.0%
(d)(e)(h)(k)
GenOn
Energy
Holdings,
Inc.,
Escrow
......
1,864
—
GenOn
Energy
Holdings,
Inc.,
Escrow
(f)
.....
3,270
1
1
Media
—
0.0%
Adelphia
Communications
Corp.,
Escrow
(d)(e)(k)
325
—
Total
Other
Interests
—
0.0%
..........................
249,113
Preferred
Securities
—
0.9%
Pa
r
(
000)
Capital
Trusts
—
0.9%
Banks
—
0.7%
(h)(j)
Bank
of
America
Corp.:
Series
X,
6.25%
..................
17,568
18,771,408
Series
Z,
6.50%
..................
14,316
15,912,234
Series
AA,
6.10%
.................
5,669
6,171,330
Series
DD,
6.30%
.................
4,245
4,797,275
CIT
Group,
Inc.,
Series
A,
5.80%
.........
14,850
11,940,291
Citigroup,
Inc.,
Series
V,
4.70%
..........
7,705
7,444,956
JPMorgan
Chase
&
Co.:
Series
I,
3.74%
...................
10,460
10,029,751
Series
Z,
4.05%
..................
10,770
10,621,913
Series
V,
3.62%
...................
17,297
16,003,184
Series
S,
6.75%
..................
6,105
6,608,662
Series
FF,
5.00%
..................
30,260
30,207,841
Series
X,
6.10%
..................
5,667
5,950,350
Series
HH,
4.60%
.................
5,845
5,728,100
Wells
Fargo
&
Co.,
Series
U,
5.87%
.......
29,750
32,029,221
182,216,516
Capital
Markets
—
0.1%
(h)(j)
Goldman
Sachs
Group,
Inc.
(The),
Series
M,
4.17%
.........................
3,000
2,948,400
Morgan
Stanley:
Series
H,
3.89%
..................
6,961
6,569,444
Series
J,
4.08%
...................
22,303
21,810,550
31,328,394
Security
Par
(000)
Value
Consumer
Finance
—
0.1%
General
Motors
Financial
Co.,
Inc.,
Series
C,
5.70%
(h)(j)
.......................
USD
10,625
$
10,664,844
Entertainment
—
0.0%
NBCUniversal
Enterprise,
Inc.,
5.25%
(b)(j)
....
2,827
2,855,270
Total
Capital
Trusts
—
0.9%
(Cost:
$225,747,619)
..............................
227,065,024
Shares
Preferred
Stocks
—
0.0%
Banks
—
0.0%
CF-B
L2
(D),
LLC
(Acquired
4/08/15-12/15/15,
cost
$3,532,445)
(j)(q)
................
3,650,855
288,417
Total
Preferred
Stocks
—
0.0%
(Cost:
$3,572,595)
...............................
288,417
Total
Preferred
Securities
—
0.9%
(Cost:
$229,320,214)
..............................
227,353,441
Warrants
—
0.0%
Oil,
Gas
&
Consumable
Fuels
—
0.0%
SM
Energy
Co.
(Issued/exercisable
06/18/20,
1
share
for
1
warrant,
Expires
06/30/23,
Strike
Price
USD
0.01)
..................
1,172,536
1,852,607
Total
Warrants
—
0.0%
..............................
1,852,607
Total
Long-Term
Investments
—
97.5%
(Cost:
$23,675,993,564)
............................
24,254,930,931
Short-Term
Securities
—
3.2%
(r)
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.02%
*
....................
604,504,790
604,504,790
JPMorgan
U.S.
Treasury
Plus
Money
Market
Fund,
Agency
Class,
0.01%
...........
9,415,787
9,415,787
SL
Liquidity
Series,
LLC,
Money
Market
Series,
0.25%
(s)*
........................
167,836,125
167,903,259
Total
Short-Term
Securities
—
3.2%
(Cost:
$781,824,413)
..............................
781,823,836
Total
Options
Purchased
—
0.0%
(Cost:
$276,809)
.................................
345,416
Total
Investments
Before
Options
Written
—
100.7%
(Cost:
$24,458,094,786
)
............................
25,037,100,183
Total
Options
Written
—
(0.0)%
(Premium
Received
—
$124,305)
.....................
(79,527)
Total
Investments
Net
of
Options
Written
—
100.7%
(Cost:
$24,457,970,481
)
............................
25,037,020,656
Liabilities
in
Excess
of
Other
Assets
—
(0.7)%
.............
(165,167,552)
Net
Assets
—
100.0%
...............................
$
24,871,853,104
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
70
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
(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)
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)
Non-income
producing
security.
(e)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(f)
All
or
a
portion
of
this
security
is
on
loan.
(g)
All
or
a
portion
of
the
security
is
held
by
a
wholly-owned
subsidiary.
See
Note
1
of
the
Notes
to
Financial
Statements
for
details
on
the
wholly-owned
subsidiary.
(h)
Variable
rate
security.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(i)
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.
(j)
Perpetual
security
with
no
stated
maturity
date.
(k)
Issuer
filed
for
bankruptcy
and/or
is
in
default.
(l)
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.
(m)
Convertible
security.
(n)
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.
(o)
Fixed
rate.
(p)
Other
interests
represent
beneficial
interests
in
liquidation
trusts
and
other
reorganization
or
private
entities.
(q)
Restricted
security
as
to
resale,
excluding
144A
securities.
The
Fund
held
restricted
securities
with
a
current
value
of
$288,417,
representing
less
than
0.05%
of
its
net
assets
as
of
period
end,
and
an
original
cost
of
$3,532,445.
(r)
Annualized
7-day
yield
as
of
period
end.
(s)
All
or
a
portion
of
this
security
was
purchased
with
the
cash
collateral
from
loaned
securities.
*
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2020
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/19
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/20
Shares
Held
at
09/30/20
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
380,229,234
$
224,275,556
$
—
$
—
$
—
$
604,504,790
604,504,790
$
2,753,726
$
532
SL
Liquidity
Series,
LLC,
Money
Market
Series
(a)
..........
6,691,674
160,908,363
—
303,910
(688)
167,903,259
167,836,125
690,693
(b)
—
iShares
0-5
Year
High
Yield
Corporate
Bond
ETF
(c)
.....
69,735,000
392,551,640
(462,074,847)
(201,793)
(10,000)
—
—
1,684,518
—
iShares
Broad
USD
High
Yield
Corporate
Bond
ETF
......
69,115,410
228,951,393
(147,266,682)
(721,828)
11,065,679
161,143,972
4,082,695
5,471,393
—
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
......
155,514,418
4,065,261,638
(4,010,261,315)
10,297,858
5,381,801
226,194,400
2,696,000
12,805,518
—
iShares
iBoxx
$
Investment
Grade
Corporate
Bond
ETF
(c)
.....
—
180,076,200
(193,964,053)
13,887,853
—
—
—
465,056
—
iShares
Preferred
&
Income
Securities
ETF
..........
—
315,330,928
—
—
(1,860,928)
313,470,000
8,600,000
1,377,875
—
$
23,566,000
$
14,575,864
$
1,473,216,421
$
25,248,779
532
(a)
Represents
net
amount
purchased
(sold).
(b)
All
or
a
portion
represents
securities
lending
income
earned
from
the
reinvestment
of
cash
collateral
from
loaned
securities,
net
of
fees
and
collateral
investment
expenses,
and
other
payments
to
and
from
borrowers
of
securities.
(c)
As
of
period
end,
the
entity
is
no
longer
held.
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.
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
71
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Derivative
Financial
Instruments
Outstanding
as
of
Period
End
Futures
Contracts
Description
Number
of
Contracts
Expiration
Date
Notional
Amount
(000)
Value/
Unrealized
Appreciation
(Depreciation)
Short
Contracts
U.S.
Treasury
10
Year
Note
...................................................
3,956
12/21/20
$
551,986
$
(2,390,915)
U.S.
Treasury
Long
Bond
....................................................
728
12/21/20
128,333
1,522,010
U.S.
Treasury
Ultra
Bond
....................................................
1,046
12/21/20
232,016
(2,903,522)
U.S.
Treasury
5
Year
Note
....................................................
2,068
12/31/20
260,633
(489,227)
$
(4,261,654)
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
CAD
13,395,000
USD
10,005,272
Barclays
Bank
plc
10/05/20
$
54,530
EUR
285,590,000
USD
334,425,890
UBS
AG
10/05/20
434,915
GBP
58,884,000
USD
75,660,052
HSBC
Bank
plc
10/05/20
321,928
USD
10,260,051
CAD
13,395,000
Citibank
NA
10/05/20
200,250
USD
701,209,910
EUR
586,418,000
UBS
AG
10/05/20
13,621,396
USD
77,355,414
GBP
58,106,000
Bank
of
America
NA
10/05/20
2,377,340
USD
799,773
GBP
607,000
State
Street
Bank
and
Trust
Co.
10/05/20
16,520
USD
795,047
GBP
612,000
UBS
AG
10/05/20
5,342
AUD
10,492,000
USD
7,473,187
Bank
of
America
NA
10/06/20
41,768
USD
7,703,987
AUD
10,492,000
BNP
Paribas
SA
10/06/20
189,031
USD
335,375,477
EUR
285,590,000
Goldman
Sachs
International
11/04/20
300,438
17,563,458
EUR
285,590,000
USD
335,168,424
Goldman
Sachs
International
10/05/20
(307,619)
USD
7,473,703
AUD
10,492,000
Bank
of
America
NA
11/04/20
(41,779)
USD
10,006,238
CAD
13,395,000
Barclays
Bank
plc
11/04/20
(54,532)
USD
334,632,943
EUR
285,590,000
UBS
AG
11/04/20
(442,096)
USD
75,672,005
GBP
58,884,000
HSBC
Bank
plc
11/04/20
(322,331)
(1,168,357)
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
EURO
STOXX
50
Index
.......................
340
10/16/20
EUR
3,250.00
EUR
10,858
$
345,416
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
EURO
STOXX
50
Index
........................
340
10/16/20
EUR
3,050.00
EUR
10,858
$
(79,527)
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
72
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Centrally
Cleared
Credit
Defa
ul
t
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.HY.35.V1
.....
5.00
%
Quarterly
12/20/25
BB-
USD
150,000
$
6,420,000
$
6,420,000
$
—
ITRAXX.EUR.
CROSSOVER.34.V1
.
5.00
Quarterly
12/20/25
B
EUR
2,280
183,746
183,746
—
$
6,603,746
$
6,603,746
$
—
(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
Swap
s
—
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)
Nordstrom,
Inc.
...........
1.00
%
Quarterly
Barclays
Bank
plc
06/20/25
USD
3,612
$
687,989
$
813,418
$
(125,429)
Nordstrom,
Inc.
...........
1.00
Quarterly
BNP
Paribas
SA
06/20/25
USD
4,240
807,639
952,869
(145,230)
$
–
$
–
$
–
$
1,495,628
$
1,766,287
$
(270,659)
$
–
$
–
$
–
OTC
Credit
Default
Swap
s
—
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)
Casino
Guichard
Perrachon
SA
.............
1.00
%
Quarterly
Barclays
Bank
plc
06/20/23
NR
EUR
200
$
(50,640)
$
(14,694)
$
(35,946)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
Barclays
Bank
plc
06/20/23
B
EUR
800
(202,673)
(59,427)
(143,246)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
Citibank
NA
06/20/23
B
EUR
1,044
(264,450)
(86,670)
(177,780)
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/23
B
EUR
10
(2,532)
(573)
(1,959)
CenturyLink,
Inc.
......
1.00
Quarterly
Barclays
Bank
plc
06/20/23
NR
USD
20,000
(550,741)
(1,231,382)
680,641
Casino
Guichard
Perrachon
SA
.............
1.00
Quarterly
Goldman
Sachs
International
12/20/23
NR
EUR
210
(59,757)
(21,848)
(37,909)
CenturyLink,
Inc.
......
1.00
Quarterly
Barclays
Bank
plc
12/20/23
NR
USD
5,176
(202,517)
(255,754)
53,237
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
910
(156,038)
47,273
(203,311)
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
490
(84,021)
14,628
(98,649)
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
460
(78,876)
(5,177)
(73,699)
Garfunkelux
Holdco
2
SA
5.00
Quarterly
Credit
Suisse
International
12/20/24
B-
EUR
190
(32,579)
—
(32,579)
Altice
France
SA
......
5.00
Quarterly
Credit
Suisse
International
06/20/25
B
EUR
1,280
103,812
139,903
(36,091)
CenturyLink,
Inc.
......
1.00
Quarterly
Barclays
Bank
plc
06/20/25
NR
USD
3,720
(349,658)
(466,066)
116,408
Garfunkelux
Holdco
2
SA
5.00
Quarterly
JPMorgan
Chase
Bank
NA
06/20/25
B-
EUR
780
(127,127)
(54,555)
(72,572)
Rolls-Royce
plc
.......
1.00
Quarterly
Citibank
NA
06/20/25
BB-
EUR
510
(97,774)
(87,374)
(10,400)
Rolls-Royce
plc
.......
1.00
Quarterly
Citibank
NA
06/20/25
BB-
EUR
1,120
(214,416)
(191,610)
(22,806)
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
73
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
i
OTC
Credit
Default
Swaps
—
Sell
Protection
(continued)
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)
Rolls-Royce
plc
.......
1.00
%
Quarterly
JPMorgan
Chase
Bank
NA
06/20/25
BB-
EUR
1,280
$
(245,155)
$
(178,485)
$
(66,670)
$
(2,615,142)
$
(2,451,811)
$
(163,331)
(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
Total
Return
Swaps
Paid
by
the
Fund
Received
by
the
Fund
Rate
(Amount)/
Reference
Frequency
Rate/Reference
Frequency
Counterparty
Termination
Date
Notional
Amount
(000)
Value
Upfront
Premium
Paid
(Received)
Unrealized
Appreciation
(Depreciation)
1
month
LIBOR
plus
0.27%
.........
At
Termination
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
At
Termination
JPMorgan
Chase
Bank
NA
10/01/20
USD
1,000
$
(818,223)
$
—
$
(818,223)
1
month
LIBOR
plus
0.25%
.........
At
Termination
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
At
Termination
Merrill
Lynch
International
&
Co.
10/26/20
USD
1,000
798,178
—
798,178
1
month
LIBOR
plus
0.19%
.........
At
Termination
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
At
Termination
JPMorgan
Chase
Bank
NA
10/28/20
USD
2,000
820,000
—
820,000
1
month
LIBOR
plus
0.25%
.........
At
Termination
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
At
Termination
Merrill
Lynch
International
&
Co.
10/28/20
USD
1,000
410,000
—
410,000
1
month
LIBOR
plus
0.14%
.........
At
Termination
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
At
Termination
Merrill
Lynch
International
&
Co.
11/03/20
USD
1,000
—
—
—
3
month
LIBOR
.....
Quarterly
iBoxx
USD
Liquid
High
Yield
Total
Return
Index
At
Termination
Goldman
Sachs
International
12/20/20
USD
83,066
7,173,581
(52,664)
7,226,245
3
month
LIBOR
.....
Quarterly
iBoxx
USD
Liquid
High
Yield
Total
Return
Index
At
Termination
JPMorgan
Chase
Bank
NA
12/20/20
USD
80,933
6,887,638
(51,312)
6,938,950
3
month
LIBOR
.....
Quarterly
iBoxx
USD
Liquid
High
Yield
Total
Return
Index
At
Termination
Morgan
Stanley
&
Co.
International
plc
12/20/20
USD
112,088
6,400,218
(39,354)
6,439,572
3
month
LIBOR
.....
Quarterly
iBoxx
USD
Liquid
High
Yield
Total
Return
Index
At
Termination
Morgan
Stanley
&
Co.
International
plc
03/20/21
USD
342,880
2,059,517
(81,918)
2,141,435
$
23,730,909
$
(225,248)
$
23,956,157
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
1
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.15
%
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.23
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
74
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
Balances
Reported
in
the
Statements
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)
...........................................
$
6,603,746
$
—
$
—
$
—
$
—
OTC
Swaps
.....................................................
1,968,091
(2,878,863)
25,624,666
(2,102,499)
—
Options
Written
...................................................
N/A
N/A
44,778
—
(79,527)
(a)
Includes
cumulative
appreciation
(depreciation)
on
centrally
cleared
swaps,
as
reported
in
the
Consolidated
Schedule
of
Investments.
Only
current
day’s
variation
margin
is
reported
within
the
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
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)
.....
$
—
$
—
$
—
$
—
$
1,522,010
$
—
$
1,522,010
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
17,563,458
—
—
17,563,458
Options
purchased
Investments
at
value
—
unaffiliated
(b)
...........
—
—
345,416
—
—
—
345,416
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
2,818,377
2,028,178
—
22,746,202
—
27,592,757
$
—
$
2,818,377
$
2,373,594
$
17,563,458
$
24,268,212
$
—
$
47,023,641
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
5,783,664
—
5,783,664
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
1,168,357
—
—
1,168,357
Options
written
Options
written
at
value
.....................
—
—
79,527
—
—
—
79,527
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
3,937,891
818,223
—
225,248
—
4,981,362
$
—
$
3,937,891
$
897,750
$
1,168,357
$
6,008,912
$
—
$
12,012,910
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Consolidated
Schedule
of
Investments.
In
the
Statements
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
Consolidated
Schedule
of
Investments.
For
the
year
ended
September
30,
2020,
the
effect
of
derivative
financial
instruments
in
the
Statements
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
.......................
$
—
$
—
$
(26,467,522)
$
—
$
(14,918,077)
$
—
$
(41,385,599)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(52,196,357)
—
—
(52,196,357)
Options
purchased
(a)
....................
—
(4,271,030)
(11,303,142)
—
(5,616,419)
—
(21,190,591)
Options
written
........................
—
(49,894,354)
5,150,010
—
636,680
—
(44,107,664)
Swaps
..............................
—
(26,677,191)
(1,983,782)
—
(30,984,056)
—
(59,645,029)
$
—
$
(80,842,575)
$
(34,604,436)
$
(52,196,357)
$
(50,881,872)
$
—
$
(218,525,240)
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
75
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
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
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
.......................
—
—
(17,880)
—
(4,284,791)
—
(4,302,671)
Forward
foreign
currency
exchange
contracts
....
—
—
—
12,152,908
—
—
12,152,908
Options
purchased
(b)
....................
—
—
96,111
—
—
—
96,111
Options
written
........................
—
—
44,778
—
—
—
44,778
Swaps
..............................
—
462,648
2,809,742
—
22,806,912
—
26,079,302
$
—
$
462,648
$
2,932,751
$
12,152,908
$
18,522,121
$
—
$
34,070,428
(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
..................................................................................
$
413,753
Average
notional
value
of
contracts
—
short
.................................................................................
869,167,291
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
1,136,097,546
Average
amounts
sold
—
in
USD
........................................................................................
493,328,796
Options:
Average
value
of
option
contracts
purchased
................................................................................
4,254,448
Average
value
of
option
contracts
written
...................................................................................
2,638,568
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
709,935,000
Average
notional
value
of
swaption
contracts
written
...........................................................................
393,340,000
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
7,139,805
Average
notional
value
—
sell
protection
...................................................................................
422,345,441
Total
return
swaps:
Average
notional
value
...............................................................................................
440,189,500
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
3,988,532
$
—
Forward
foreign
currency
exchange
contracts
.................................................................
17,563,458
1,168,357
Options
(a)
.........................................................................................
345,416
79,527
Swaps
—
Centrally
cleared
.............................................................................
—
180,749
Swaps
—
OTC
(b)
....................................................................................
27,592,757
4,981,362
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
49,490,163
$
6,409,995
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(4,333,948)
(260,276)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
45,156,215
$
6,149,719
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
of
Assets
and
Liabilities
and
reported
in
the
Consolidated
Schedule
of
Investments.
(b)
Includes
unrealized
appreciation
(depreciation)
on
OTC
swaps
and
swap
premiums
paid/received
in
the
Statements
of
Assets
and
Liabilities.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
76
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
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
(b)
Net
Amount
of
Derivative
Assets
(c)(d)
Bank
of
America
NA
..............................
$
2,419,108
$
(41,779)
$
—
$
—
$
2,377,329
Barclays
Bank
plc
................................
1,718,234
(1,718,234)
—
—
—
BNP
Paribas
SA
.................................
1,141,900
(145,230)
—
(640,000)
356,670
Citibank
NA
....................................
200,250
(200,250)
—
—
—
Credit
Suisse
International
..........................
201,804
(201,804)
—
—
—
Goldman
Sachs
International
........................
7,526,683
(420,040)
—
(6,570,000)
536,643
HSBC
Bank
plc
..................................
321,928
(321,928)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
7,758,950
(1,244,349)
—
(2,570,000)
3,944,601
Merrill
Lynch
International
&
Co.
......................
1,208,178
—
—
—
1,208,178
Morgan
Stanley
&
Co.
International
plc
..................
8,581,007
(121,272)
—
(6,540,000)
1,919,735
State
Street
Bank
and
Trust
Co.
......................
16,520
—
—
—
16,520
UBS
AG
......................................
14,061,653
(442,096)
—
—
13,619,557
$
45,156,215
$
(4,856,982)
$
—
$
(16,320,000)
$
23,979,233
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
(e)
Net
Amount
of
Derivative
Liabilities
(d)(f)
Bank
of
America
NA
..............................
$
41,779
$
(41,779)
$
—
$
—
$
—
Barclays
Bank
plc
................................
2,386,476
(1,718,234)
—
(668,242)
—
BNP
Paribas
SA
.................................
145,230
(145,230)
—
—
—
Citibank
NA
....................................
576,640
(200,250)
—
(376,390)
—
Credit
Suisse
International
..........................
449,506
(201,804)
—
—
247,702
Goldman
Sachs
International
........................
420,040
(420,040)
—
—
—
HSBC
Bank
plc
..................................
322,331
(321,928)
—
—
403
JPMorgan
Chase
Bank
NA
..........................
1,244,349
(1,244,349)
—
—
—
Morgan
Stanley
&
Co.
International
plc
..................
121,272
(121,272)
—
—
—
UBS
AG
......................................
442,096
(442,096)
—
—
—
$
6,149,719
$
(4,856,982)
$
—
$
(1,044,632)
$
248,105
(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)
Excess
of
collateral
received
from
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(d)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(e)
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(f)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
77
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
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.
The
breakdown
of
the
Fund's
investments
into
major
categories
is
disclosed
in
the
Consolidated
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
...................................
$
—
$
19,036,884
$
—
$
19,036,884
Common
Stocks:
Auto
Components
......................................
300,506
—
—
300,506
Building
Products
.......................................
516,650
—
—
516,650
Chemicals
............................................
59,649,011
—
—
59,649,011
Commercial
Services
&
Supplies
.............................
—
—
3
3
Consumer
Finance
......................................
469,673
—
—
469,673
Diversified
Financial
Services
...............................
—
903
12,694,777
12,695,680
Diversified
Telecommunication
Services
........................
11,931,909
13,345,247
—
25,277,156
Energy
Equipment
&
Services
..............................
—
—
1,682,479
1,682,479
Entertainment
.........................................
11,051,488
—
—
11,051,488
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
84,254,187
—
—
84,254,187
Life
Sciences
Tools
&
Services
..............................
2,445,483
—
—
2,445,483
Media
...............................................
4,744,023
—
—
4,744,023
Metals
&
Mining
........................................
25,295,346
—
—
25,295,346
Oil,
Gas
&
Consumable
Fuels
...............................
—
—
1,662,848
1,662,848
Pharmaceuticals
.......................................
24,835,002
—
—
24,835,002
Semiconductors
&
Semiconductor
Equipment
....................
20,026
—
—
20,026
Corporate
Bonds:
Aerospace
&
Defense
....................................
—
892,224,541
—
892,224,541
Air
Freight
&
Logistics
....................................
—
7,564,726
—
7,564,726
Airlines
..............................................
—
167,117,681
—
167,117,681
Auto
Components
......................................
—
375,767,197
—
375,767,197
Automobiles
..........................................
—
211,093,140
—
211,093,140
Banks
...............................................
—
185,701,368
—
185,701,368
Biotechnology
.........................................
—
5,337,896
—
5,337,896
Building
Products
.......................................
—
218,860,764
—
218,860,764
Capital
Markets
........................................
—
225,968,640
—
225,968,640
Chemicals
............................................
—
482,507,651
—
482,507,651
Commercial
Services
&
Supplies
.............................
—
678,684,498
—
678,684,498
Communications
Equipment
................................
—
203,099,341
—
203,099,341
Construction
&
Engineering
................................
—
67,154,272
—
67,154,272
Construction
Materials
....................................
—
10,169,690
—
10,169,690
Consumer
Finance
......................................
—
373,107,921
—
373,107,921
Containers
&
Packaging
..................................
—
419,079,433
—
419,079,433
Distributors
...........................................
—
116,088,477
—
116,088,477
Diversified
Consumer
Services
..............................
—
91,996,979
—
91,996,979
Diversified
Financial
Services
...............................
—
371,111,188
—
371,111,188
Diversified
Telecommunication
Services
........................
—
1,586,483,804
—
1,586,483,804
Electric
Utilities
........................................
—
142,787,182
—
142,787,182
Electrical
Equipment
.....................................
—
22,475,739
—
22,475,739
Electronic
Equipment,
Instruments
&
Components
.................
—
88,384,782
—
88,384,782
Energy
Equipment
&
Services
..............................
—
96,602,341
20,659,635
117,261,976
Entertainment
.........................................
—
272,333,365
—
272,333,365
Equity
Real
Estate
Investment
Trusts
(REITs)
....................
—
795,654,754
—
795,654,754
Food
&
Staples
Retailing
..................................
—
144,082,813
—
144,082,813
Food
Products
.........................................
—
582,888,425
—
582,888,425
Gas
Utilities
...........................................
—
38,802,213
—
38,802,213
Health
Care
Equipment
&
Supplies
...........................
—
239,092,623
—
239,092,623
Health
Care
Providers
&
Services
............................
—
1,083,035,359
—
1,083,035,359
Health
Care
Technology
..................................
—
35,053,021
—
35,053,021
Hotels,
Restaurants
&
Leisure
..............................
—
1,156,328,108
—
1,156,328,108
Household
Durables
.....................................
—
269,682,431
—
269,682,431
Household
Products
.....................................
—
40,497,869
—
40,497,869
Independent
Power
and
Renewable
Electricity
Producers
............
—
234,426,347
—
234,426,347
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
High
Yield
Bond
Portfolio
78
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
Level
1
Level
2
Level
3
Total
Industrial
Conglomerates
..................................
$
—
$
15,373,959
$
—
$
15,373,959
Insurance
............................................
—
276,006,380
—
276,006,380
Interactive
Media
&
Services
...............................
—
23,109,320
—
23,109,320
Internet
&
Direct
Marketing
Retail
............................
—
113,029,448
—
113,029,448
IT
Services
...........................................
—
361,048,151
—
361,048,151
Leisure
Products
.......................................
—
62,551,218
—
62,551,218
Life
Sciences
Tools
&
Services
..............................
—
102,323,186
—
102,323,186
Machinery
............................................
—
289,365,633
—
289,365,633
Marine
..............................................
—
2,086,183
—
2,086,183
Media
...............................................
—
1,322,001,662
—
1,322,001,662
Metals
&
Mining
........................................
—
591,651,438
—
591,651,438
Mortgage
Real
Estate
Investment
Trusts
(REITs)
..................
—
3,223,440
—
3,223,440
Multiline
Retail
.........................................
—
101,105,791
—
101,105,791
Oil,
Gas
&
Consumable
Fuels
...............................
—
2,296,945,497
—
2,296,945,497
Paper
&
Forest
Products
..................................
—
21,110,753
—
21,110,753
Personal
Products
......................................
—
16,702,143
—
16,702,143
Pharmaceuticals
.......................................
—
496,473,692
—
496,473,692
Professional
Services
....................................
—
119,561,104
—
119,561,104
Real
Estate
Management
&
Development
.......................
—
93,640,911
—
93,640,911
Road
&
Rail
...........................................
—
137,373,934
—
137,373,934
Semiconductors
&
Semiconductor
Equipment
....................
—
270,463,101
—
270,463,101
Software
.............................................
—
813,008,422
—
813,008,422
Specialty
Retail
........................................
—
303,303,444
—
303,303,444
Technology
Hardware,
Storage
&
Peripherals
....................
—
64,520,015
—
64,520,015
Textiles,
Apparel
&
Luxury
Goods
............................
—
38,998,821
—
38,998,821
Thrifts
&
Mortgage
Finance
................................
—
86,095,058
—
86,095,058
Trading
Companies
&
Distributors
............................
—
229,818,391
—
229,818,391
Transportation
Infrastructure
...............................
—
9,343,369
—
9,343,369
Wireless
Telecommunication
Services
.........................
—
370,039,639
—
370,039,639
Floating
Rate
Loan
Interests:
Aerospace
&
Defense
....................................
—
9,939,202
14,250,285
24,189,487
Airlines
..............................................
—
28,137,345
—
28,137,345
Auto
Components
......................................
—
13,709,998
—
13,709,998
Automobiles
..........................................
—
3,963,648
—
3,963,648
Building
Products
.......................................
—
4,755,637
—
4,755,637
Capital
Markets
........................................
—
—
5,375,464
5,375,464
Chemicals
............................................
—
128,025,702
—
128,025,702
Commercial
Services
&
Supplies
.............................
—
144,739,271
2,701,250
147,440,521
Construction
&
Engineering
................................
—
17,326,948
—
17,326,948
Construction
Materials
....................................
—
12,257,409
—
12,257,409
Containers
&
Packaging
..................................
—
18,661,859
—
18,661,859
Diversified
Consumer
Services
..............................
—
30,381,900
—
30,381,900
Diversified
Financial
Services
...............................
—
57,394,706
651,679
58,046,385
Diversified
Telecommunication
Services
........................
—
241,670,063
—
241,670,063
Entertainment
.........................................
—
277,137
—
277,137
Food
Products
.........................................
—
20,688,534
—
20,688,534
Health
Care
Equipment
&
Supplies
...........................
—
35,290,914
—
35,290,914
Health
Care
Providers
&
Services
............................
—
79,718,321
—
79,718,321
Hotels,
Restaurants
&
Leisure
..............................
—
20,526,714
3,675,047
24,201,761
Independent
Power
and
Renewable
Electricity
Producers
............
—
820,434
—
820,434
Industrial
Conglomerates
..................................
—
22,418,110
—
22,418,110
Insurance
............................................
—
106,782,533
—
106,782,533
Interactive
Media
&
Services
...............................
—
9,540,011
—
9,540,011
IT
Services
...........................................
—
359,767,748
8,199,644
367,967,392
Life
Sciences
Tools
&
Services
..............................
—
15,437,391
—
15,437,391
Machinery
............................................
—
53,522,114
10,971,541
64,493,655
Media
...............................................
—
241,514,826
—
241,514,826
Oil,
Gas
&
Consumable
Fuels
...............................
—
5,685,225
22,648,749
28,333,974
Pharmaceuticals
.......................................
—
30,088,308
—
30,088,308
Professional
Services
....................................
—
25,088,105
—
25,088,105
Road
&
Rail
...........................................
—
6,842,451
—
6,842,451
Software
.............................................
—
103,544,050
—
103,544,050
Specialty
Retail
........................................
—
39,194,185
—
39,194,185
Wireless
Telecommunication
Services
.........................
—
13,985,988
—
13,985,988
Foreign
Agency
Obligations
.................................
—
17,559,240
—
17,559,240
Investment
Companies
....................................
1,181,629,322
—
—
1,181,629,322
BlackRock
High
Yield
Bond
Portfolio
Consolidated
Schedules
of
Investments
79
Consolidated
Schedule
of
Investments
(continued)
September
30,
2020
See
notes
to
financial
statements.
Level
1
Level
2
Level
3
Total
Other
Interests
..........................................
$
—
$
—
$
249,113
$
249,113
Preferred
Securities
......................................
—
227,353,441
—
227,353,441
Warrants
..............................................
—
1,852,607
—
1,852,607
Short-Term
Securities
.......................................
613,920,577
—
—
613,920,577
Options
Purchased:
Equity
contracts
..........................................
345,416
—
—
345,416
Unfunded
Floating
Rate
Loan
Interests
(a)
..............................
—
349,201
—
349,201
Subtotal
....................................................
$
2,021,408,619
$
22,742,714,992
$
105,422,514
$
24,869,546,125
Investments
valued
at
NAV
(b)
......................................
167,903,259
$
—
Total
Investments
..............................................
$
25,037,449,384
$
—
Derivative
Financial
Instruments
(c)
Assets:
Credit
contracts
...........................................
$
—
$
850,286
$
—
$
850,286
Equity
contracts
...........................................
—
2,028,178
—
2,028,178
Foreign
currency
exchange
contracts
............................
—
17,563,458
—
17,563,458
Interest
rate
contracts
.......................................
1,522,010
22,746,202
—
24,268,212
Liabilities:
Credit
contracts
...........................................
—
(1,284,276)
—
(1,284,276)
Equity
contracts
...........................................
(79,527)
(818,223)
—
(897,750)
Foreign
currency
exchange
contracts
............................
—
(1,168,357)
—
(1,168,357)
Interest
rate
contracts
.......................................
(5,783,664)
—
—
(5,783,664)
$
(4,341,181)
$
39,917,268
$
—
$
35,576,087
(a)
Unfunded
floating
rate
loan
interests
are
valued
at
the
unrealized
appreciation
(depreciation)
on
the
commitment.
(b)
Certain
investments
of
the
Fund
were
fair
valued
using
NAV
per
share
as
no
quoted
market
value
is
available
and
therefore
have
been
excluded
from
the
fair
value
hierarchy.
(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.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
80
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
—
15.0%
Ajax
Mortgage
Loan
Trust,
Series
2019-G,
Class
A,
3.00%,
09/25/59
(a)(b)
..........
USD
7,575
$
7,513,031
Allegro
CLO
II-S
Ltd.,
Series
2014-1RA,
Class
A1,
(LIBOR
USD
3
Month
+
1.08%),
1.35%,
10/21/28
(b)(c)
.....................
5,600
5,584,973
ALM
XVII
Ltd.,
Series
2015-17A,
Class
A1AR,
(LIBOR
USD
3
Month
+
0.93%),
1.20%,
01/15/28
(b)(c)
.....................
3,680
3,657,682
AmeriCredit
Automobile
Receivables
Trust,
Series
2020-2,
Class
B,
0.97%,
02/18/26
..
3,870
3,882,356
AMMC
CLO
XIII
Ltd.,
Series
2013-13A,
Class
A1LR,
(LIBOR
USD
3
Month
+
1.26%),
1.52%,
07/24/29
(b)(c)
................
3,957
3,947,288
Anchorage
Capital
CLO
13
LLC,
Series
2019-13A,
Class
A,
(LIBOR
USD
3
Month
+
1.47%),
1.74%,
04/15/32
(b)(c)
..........
27,170
27,095,592
Anchorage
Capital
CLO
7
Ltd.,
Series
2015-7A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.09%),
1.34%,
01/28/31
(b)(c)
................
14,523
14,333,732
Ares
XXIX
CLO
Ltd.,
Series
2014-1A,
Class
A1R,
(LIBOR
USD
3
Month
+
1.19%),
1.46%,
04/17/26
(b)(c)
................
1,231
1,231,243
ARI
Fleet
Lease
Trust,
Series
2020-A,
Class
B,
2.06%,
11/15/28
(b)
.................
1,470
1,485,433
Atlas
Senior
Loan
Fund
III
Ltd.,
Series
2013-1A,
Class
AR,
(LIBOR
USD
3
Month
+
0.83%),
1.11%,
11/17/27
(b)(c)
................
4,588
4,550,289
Atrium
XII,
Series
12A,
Class
AR,
(LIBOR
USD
3
Month
+
0.83%),
1.09%,
04/22/27
(b)(c)
...
9,590
9,501,106
Avery
Point
IV
CLO
Ltd.,
Series
2014-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.10%),
1.34%,
04/25/26
(b)(c)
.....................
786
785,246
Avery
Point
V
CLO
Ltd.,
Series
2014-5A,
Class
AR,
(LIBOR
USD
3
Month
+
0.98%),
1.25%,
07/17/26
(b)(c)
.....................
1,021
1,019,428
Azure
Finance
No.
2
plc,
Series
2,
Class
C,
(SONIA1M
IR
+
3.00%),
3.06%,
07/20/30
(c)
GBP
555
719,024
Ballyrock
CLO
Ltd.,
Series
2016-1A,
Class
CR,
(LIBOR
USD
3
Month
+
2.40%),
2.68%,
10/15/28
(b)(c)
.....................
USD
3,000
2,930,426
Benefit
Street
Partners
CLO
II
Ltd.,
Series
2013-IIA,
Class
A2R,
(LIBOR
USD
3
Month
+
1.75%),
2.03%,
07/15/29
(b)(c)
.........
8,355
8,303,725
Benefit
Street
Partners
CLO
V-B
Ltd.,
Series
2018-5BA,
Class
A1A,
(LIBOR
USD
3
Month
+
1.09%),
1.36%,
04/20/31
(b)(c)
.........
2,230
2,212,083
BlueMountain
CLO
Ltd.,
Series
2012-2A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.05%),
1.30%,
11/20/28
(b)(c)
................
13,440
13,375,387
BSPRT
Issuer
Ltd.,
Series
2018-FL3,
Class
A,
(LIBOR
USD
1
Month
+
1.05%),
1.20%,
03/15/28
(b)(c)
.....................
12,155
12,086,946
Carlyle
Global
Market
Strategies
CLO
Ltd.,
Series
2014-5A,
Class
A1RR,
(LIBOR
USD
3
Month
+
1.14%),
1.42%,
07/15/31
(b)(c)
...
5,996
5,892,324
Catamaran
CLO
Ltd.,
Series
2015-1A,
Class
AR,
(LIBOR
USD
3
Month
+
0.90%),
1.16%,
04/22/27
(b)(c)
.....................
2,892
2,876,106
Cedar
Funding
VI
CLO
Ltd.,
Series
2016-6A,
Class
AR,
(LIBOR
USD
3
Month
+
1.09%),
1.36%,
10/20/28
(b)(c)
................
26,890
26,688,685
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
Chesapeake
Funding
II
LLC
(b)
:
Series
2018-1A,
Class
A1,
3.04%,
04/15/30
USD
7,374
$
7,535,521
Series
2019-1A,
Class
B,
3.11%,
04/15/31
.
5,230
5,438,370
Series
2019-1A,
Class
C,
3.36%,
04/15/31
.
4,930
5,055,323
Series
2019-1A,
Class
D,
3.80%,
04/15/31
.
6,630
6,761,587
Series
2020-1A,
Class
A1,
0.87%,
08/16/32
9,292
9,318,593
Series
2020-1A,
Class
B,
1.24%,
08/16/32
.
1,170
1,169,748
Series
2020-1A,
Class
C,
2.14%,
08/16/32
.
720
720,101
CIFC
Funding
Ltd.
(b)(c)
:
Series
2014-4RA,
Class
A1A,
(LIBOR
USD
3
Month
+
1.13%),
1.40%,
10/17/30
....
17,860
17,779,934
Series
2015-2A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.01%),
1.28%,
04/15/30
(d)
...
27,350
27,079,235
Credit
Acceptance
Auto
Loan
Trust
(b)
:
Series
2018-1A,
Class
A,
3.01%,
02/16/27
.
7,454
7,482,975
Series
2018-2A,
Class
A,
3.47%,
05/17/27
.
20,701
20,922,718
Series
2019-1A,
Class
A,
3.33%,
02/15/28
.
25,440
26,061,988
Series
2019-3A,
Class
A,
2.38%,
11/15/28
.
13,620
14,007,505
Series
2020-1A,
Class
A,
2.01%,
02/15/29
.
26,840
27,473,032
Series
2020-2A,
Class
A,
1.37%,
07/16/29
.
6,450
6,526,762
Drive
Auto
Receivables
Trust:
Series
2019-4,
Class
A3,
2.16%,
05/15/23
.
7,930
7,983,747
Series
2020-1,
Class
A3,
2.02%,
11/15/23
.
9,220
9,340,847
Dryden
XXV
Senior
Loan
Fund,
Series
2012-
25A,
Class
ARR,
(LIBOR
USD
3
Month
+
0.90%),
1.18%,
10/15/27
(b)(c)
..........
27,494
27,287,390
Dryden
XXVI
Senior
Loan
Fund,
Series
2013-
26A,
Class
AR,
(LIBOR
USD
3
Month
+
0.90%),
1.18%,
04/15/29
(b)(c)
..........
13,800
13,652,421
EDvestinU
Private
Education
Loan
Issue
No.
1
LLC,
Series
2019-A,
Class
A,
3.58%,
11/25/38
(b)(e)
.....................
8,527
9,072,477
Enterprise
Fleet
Financing
LLC
(b)
:
Series
2018-1,
Class
A2,
2.87%,
10/20/23
.
4,898
4,923,744
Series
2019-2,
Class
A3,
2.38%,
02/20/25
.
14,800
15,280,606
FT
Santander
Consumer
Spain
Auto:
Series
2020-1,
Class
B,
(EURIBOR
3
Month
+
0.95%),
0.44%,
03/20/33
(c)
........
EUR
1,000
1,172,681
Series
2020-1,
Class
C,
(EURIBOR
3
Month
+
1.95%),
1.44%,
03/20/33
(c)
........
300
351,802
Series
2020-1,
Class
D,
3.50%,
03/20/33
..
500
586,225
GoldenTree
Loan
Opportunities
X
Ltd.,
Series
2015-10A,
Class
AR,
(LIBOR
USD
3
Month
+
1.12%),
1.39%,
07/20/31
(b)(c)
.........
USD
5,275
5,221,061
GoldenTree
Loan
Opportunities
XI
Ltd.,
Series
2015-11A,
Class
AR2,
(LIBOR
USD
3
Month
+
1.07%),
1.34%,
01/18/31
(b)(c)
.........
3,815
3,785,627
Halcyon
Loan
Advisors
Funding
Ltd.,
Series
2015-2A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.32%,
07/25/27
(b)(c)
..........
11,389
11,347,698
Harley-Davidson
Motorcycle
Trust,
Series
2020-
A,
Class
A3,
1.87%,
10/15/24
.........
16,900
17,179,766
KKR
CLO
16
Ltd.,
Series
16,
Class
A2R,
(LIBOR
USD
3
Month
+
1.80%),
2.07%,
01/20/29
(b)(c)
.....................
10,610
10,488,074
Lendmark
Funding
Trust
(b)
:
Series
2018-1A,
Class
A,
3.81%,
12/21/26
.
18,440
18,837,098
Series
2019-2A,
Class
A,
2.78%,
04/20/28
.
6,170
6,238,538
Litigation
Fee
Residual
Funding
LLC,
Series
2015-1,
Class
A,
4.00%,
10/30/27
(d)
.....
4,624
4,621,905
LoanCore
Issuer
Ltd.,
Series
2018-CRE1,
Class
A,
(LIBOR
USD
1
Month
+
1.13%),
1.28%,
05/15/28
(b)(c)
.....................
10,895
10,840,483
Loanpal
Solar
Loan
Ltd.,
Series
2020-2GF,
Class
A,
2.75%,
07/20/47
(b)
...........
2,695
2,754,078
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
81
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
Madison
Park
Funding
XII
Ltd.,
Series
2014-
12A,
Class
AR,
(LIBOR
USD
3
Month
+
1.26%),
1.53%,
07/20/26
(b)(c)
..........
USD
979
$
979,318
Madison
Park
Funding
XIX
Ltd.,
Series
2015-
19A,
Class
A2R2,
(LIBOR
USD
3
Month
+
1.50%),
1.76%,
01/22/28
(b)(c)
..........
15,900
15,711,963
Marathon
CRE
Ltd.,
Series
2018-FL1,
Class
A,
(LIBOR
USD
1
Month
+
1.15%),
1.30%,
06/15/28
(b)(c)
.....................
4,841
4,795,515
Mariner
Finance
Issuance
Trust
(b)
:
Series
2019-AA,
Class
A,
2.96%,
07/20/32
.
6,804
6,923,595
Series
2020-AA,
Class
A,
2.19%,
08/21/34
.
3,020
3,030,034
Mill
City
Mortgage
Loan
Trust,
Series
2016-1,
Class
A1,
(LIBOR
USD
1
Month
+
0.00%),
2.50%,
04/25/57
(b)(c)
................
7,688
7,793,143
Mill
City
Solar
Loan
Ltd.,
Series
2019-2GS,
Class
A,
3.69%,
07/20/43
(b)
...........
13,510
14,178,097
Mosaic
Solar
Loan
Trust:
  1.44%,
08/20/46
.................
3,020
2,997,255
Series
2019-2A,
Class
A,
2.88%,
09/20/40
(b)
362
382,798
Series
2020-2A,
Class
B,
2.21%,
08/20/46
.
1,820
1,793,887
Navient
Private
Education
Refi
Loan
Trust
(b)
:
Series
2019-CA,
Class
A2,
3.13%,
02/15/68
5,000
5,163,204
Series
2019-EA,
Class
A2B,
(LIBOR
USD
1
Month
+
0.92%),
1.07%,
05/15/68
(c)
...
16,440
16,452,741
Series
2019-FA,
Class
A1,
2.18%,
08/15/68
5,292
5,311,017
Series
2019-GA,
Class
A,
2.40%,
10/15/68
10,227
10,469,943
Series
2020-A,
Class
A2B,
(LIBOR
USD
1
Month
+
0.90%),
1.05%,
11/15/68
(c)
...
1,480
1,473,068
Series
2020-BA,
Class
A1,
1.80%,
01/15/69
19,376
19,463,511
Navient
Student
Loan
Trust
(b)
:
Series
2018-EA,
Class
A2,
4.00%,
12/15/59
2,872
2,984,845
Series
2019-BA,
Class
A2A,
3.39%,
12/15/59
(d)
....................
7,880
8,246,420
Neuberger
Berman
CLO
XX
Ltd.,
Series
2015-
20A,
Class
AR,
(LIBOR
USD
3
Month
+
0.80%),
1.08%,
01/15/28
(b)(c)
..........
7,355
7,301,496
NLY
Commercial
Mortgage
Trust,
Series
2019-FL2,
Class
A,
(LIBOR
USD
1
Month
+
1.30%),
1.45%,
02/15/36
(b)(c)
..........
5,121
5,004,096
OCP
CLO
Ltd.,
Series
2015-8A,
Class
A1R,
(LIBOR
USD
3
Month
+
0.85%),
1.12%,
04/17/27
(b)(c)
.....................
766
765,165
Octagon
Investment
Partners
30
Ltd.,
Series
2017-1A,
Class
B,
(LIBOR
USD
3
Month
+
2.35%),
2.62%,
03/17/30
(b)(c)
..........
4,200
4,080,719
OFSI
Fund
VI
Ltd.,
Series
2014-6A,
Class
BR,
(LIBOR
USD
3
Month
+
1.50%),
1.78%,
03/20/25
(b)(c)
.....................
4,226
4,200,850
OneMain
Direct
Auto
Receivables
Trust,
Series
2018-1A,
Class
A,
3.43%,
12/16/24
(b)
....
18,758
18,994,678
OneMain
Financial
Issuance
Trust
(b)
:
Series
2018-1A,
Class
A,
3.30%,
03/14/29
.
4,835
4,963,924
Series
2019-2A,
Class
A,
3.14%,
10/14/36
.
7,730
8,279,479
Palmer
Square
CLO
Ltd.,
Series
2014-1A,
Class
A1R2,
(LIBOR
USD
3
Month
+
1.13%),
1.40%,
01/17/31
(b)(c)
..........
15,000
14,820,783
Palmer
Square
Loan
Funding
Ltd.
(b)(c)
:
Series
2018-5A,
Class
A1,
(LIBOR
USD
3
Month
+
0.85%),
1.12%,
01/20/27
....
12,808
12,727,889
Series
2019-1A,
Class
B,
(LIBOR
USD
3
Month
+
2.25%),
2.52%,
04/20/27
....
3,450
3,411,198
Parallel
Ltd.,
Series
2015-1A,
Class
AR,
(LIBOR
USD
3
Month
+
0.85%),
1.12%,
07/20/27
(b)(c)
8,277
8,203,158
PCL
Funding
IV
plc,
Series
2020-1,
Class
C,
(SONIA1M
IR
+
2.20%),
0.00%,
09/15/24
(c)
GBP
230
296,781
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
PFS
Financing
Corp.
(b)
:
Series
2018-B,
Class
A,
2.89%,
02/15/23
..
USD
9,120
$
9,201,955
Series
2019-A,
Class
A1,
(LIBOR
USD
1
Month
+
0.55%),
0.70%,
04/15/24
(c)
...
8,480
8,458,880
Series
2019-A,
Class
A2,
2.86%,
04/15/24
.
10,780
11,064,399
Series
2019-B,
Class
A,
(LIBOR
USD
1
Month
+
0.55%),
0.70%,
09/15/23
(c)
...
33,100
33,151,798
Series
2020-F,
Class
A,
0.93%,
08/15/24
..
3,840
3,842,560
Recette
CLO
Ltd.,
Series
2015-1A,
Class
AR,
(LIBOR
USD
3
Month
+
0.92%),
1.19%,
10/20/27
(b)(c)
.....................
6,375
6,364,763
Regatta
VI
Funding
Ltd.,
Series
2016-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.08%),
1.35%,
07/20/28
(b)(c)
.....................
19,235
19,204,243
Regional
Management
Issuance
Trust
(b)
:
Series
2019-1,
Class
A,
3.05%,
11/15/28
..
5,930
5,935,008
Series
2020-1,
Class
A,
2.34%,
10/15/30
(d)
.
2,430
2,429,870
Republic
Finance
Issuance
Trust,
Series
2019-
A,
Class
A,
3.43%,
11/22/27
(b)
.........
17,110
17,394,438
Santander
Drive
Auto
Receivables
Trust:
Series
2020-2,
Class
B,
0.96%,
11/15/24
..
2,810
2,819,240
Series
2020-2,
Class
C,
1.46%,
09/15/25
..
9,680
9,798,627
Sesac
Finance
LLC,
Series
2019-1,
Class
A2,
5.22%,
07/25/49
(b)
.................
3,029
3,216,435
Silver
Creek
CLO
Ltd.,
Series
2014-1A,
Class
AR,
(LIBOR
USD
3
Month
+
1.24%),
1.51%,
07/20/30
(b)(c)
.....................
5,000
4,985,172
SLM
Private
Credit
Student
Loan
Trust
(c)
:
Series
2004-A,
Class
A3,
(LIBOR
USD
3
Month
+
0.40%),
0.65%,
06/15/33
....
1,298
1,275,338
Series
2004-B,
Class
A3,
(LIBOR
USD
3
Month
+
0.33%),
0.58%,
03/15/24
....
1,883
1,864,382
Series
2005-A,
Class
A4,
(LIBOR
USD
3
Month
+
0.31%),
0.56%,
12/15/38
....
9,589
9,174,834
Series
2005-B,
Class
A4,
(LIBOR
USD
3
Month
+
0.33%),
0.58%,
06/15/39
....
8,241
7,811,868
Series
2007-A,
Class
A4A,
(LIBOR
USD
3
Month
+
0.24%),
0.55%,
12/16/41
....
5,944
5,713,942
SLM
Private
Education
Loan
Trust,
Series
2010-C,
Class
A5,
(LIBOR
USD
1
Month
+
4.75%),
4.90%,
10/15/41
(b)(c)
..........
7,910
8,620,587
SLM
Student
Loan
Trust,
Series
2013-4,
Class
A,
(LIBOR
USD
1
Month
+
0.55%),
0.70%,
06/25/43
(c)
......................
5,179
5,067,103
SMB
Private
Education
Loan
Trust
(b)
:
Series
2015-A,
Class
A2A,
2.49%,
06/15/27
4,081
4,127,968
Series
2016-A,
Class
A2A,
2.70%,
05/15/31
4,187
4,287,497
Series
2018-A,
Class
A2A,
3.50%,
02/15/36
20,310
21,521,737
Series
2018-B,
Class
A2B,
(LIBOR
USD
1
Month
+
0.72%),
0.87%,
01/15/37
(c)
...
9,954
9,869,358
Series
2019-A,
Class
A2A,
3.44%,
07/15/36
6,210
6,540,673
Series
2020-A,
Class
A2B,
(LIBOR
USD
1
Month
+
0.83%),
0.98%,
09/15/37
(c)
...
1,410
1,396,582
SoFi
Professional
Loan
Program
LLC
(b)
:
Series
2016-A,
Class
A2,
2.76%,
12/26/36
.
1,793
1,814,762
Series
2016-C,
Class
A2B,
2.36%,
12/27/32
1,323
1,340,028
Series
2016-D,
Class
A2B,
2.34%,
04/25/33
1,430
1,455,614
Series
2016-E,
Class
A2B,
2.49%,
01/25/36
807
817,616
Series
2018-A,
Class
A2B,
2.95%,
02/25/42
7,770
8,025,084
Series
2019-A,
Class
A2FX,
3.69%,
06/15/48
(d)
....................
6,180
6,434,146
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
82
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Asset-Backed
Securities
(continued)
SoFi
Professional
Loan
Program
Trust
(b)
:
Series
2018-C,
Class
A2FX,
3.59%,
01/25/48
.....................
USD
4,663
$
4,929,343
Series
2018-D,
Class
A1FX,
3.12%,
02/25/48
.....................
829
831,704
Series
2020-A,
Class
A2FX,
2.54%,
05/15/46
.....................
12,040
12,501,461
Sound
Point
CLO
XV
Ltd.,
Series
2017-1A,
Class
C,
(LIBOR
USD
3
Month
+
2.50%),
2.76%,
01/23/29
(b)(c)
................
1,500
1,453,030
Soundview
Home
Loan
Trust,
Series
2003-2,
Class
A2,
(LIBOR
USD
1
Month
+
1.30%),
1.45%,
11/25/33
(c)
.................
309
307,713
SpringCastle
America
Funding
LLC,
Series
2020-AA,
Class
A,
1.97%,
09/25/37
(b)
....
11,780
11,822,277
Springleaf
Funding
Trust
(b)
:
Series
2015-BA,
Class
A,
3.48%,
05/15/28
.
12,553
12,605,511
Series
2017-AA,
Class
A,
2.68%,
07/15/30
(d)
6,750
6,752,923
Towd
Point
Mortgage
Trust
(b)(e)
:
Series
2016-3,
Class
A1,
2.25%,
04/25/56
.
5,144
5,206,077
Series
2016-4,
Class
A1,
2.25%,
07/25/56
.
7,716
7,839,652
Transportation
Finance
Equipment
Trust,
Series
2019-1,
Class
A3,
1.85%,
04/24/23
(b)
.....
14,540
14,779,829
Treman
Park
CLO
Ltd.,
Series
2015-1A,
Class
ARR,
(LIBOR
USD
3
Month
+
1.07%),
1.34%,
10/20/28
(b)(c)
................
27,750
27,659,163
Tryon
Park
CLO
Ltd.,
Series
2013-1A,
Class
A1SR,
(LIBOR
USD
3
Month
+
0.89%),
1.17%,
04/15/29
(b)(c)
................
5,070
5,026,010
Turbo
Finance
plc,
Series
9,
Class
B,
(SONIA1M
IR
+
1.65%),
0.00%,
08/20/28
(c)
GBP
1,590
2,051,657
Verizon
Owner
Trust,
Series
2020-A,
Class
A1A,
1.85%,
07/22/24
..............
USD
9,930
10,184,547
Westlake
Automobile
Receivables
Trust,
Series
2019-3A,
Class
A2,
2.15%,
02/15/23
(b)
....
6,612
6,661,105
Total
Asset-Backed
Securities
—
15.0%
(Cost:
$1,112,366,655)
............................
1,120,810,844
Corporate
Bonds
—
38.0%
Aerospace
&
Defense
—
0.6%
Airbus
SE,
1.38%,
06/09/26
...........
EUR
5,320
6,512,722
Boeing
Co.
(The),
2.70%,
05/01/22
.......
USD
4,580
4,670,455
Kratos
Defense
&
Security
Solutions,
Inc.,
6.50%,
11/30/25
(b)
................
237
247,419
L3Harris
Technologies,
Inc.,
3.85%,
06/15/23
.
1,194
1,292,687
Raytheon
Technologies
Corp.:
2.80%,
03/15/22
(b)
.................
3,693
3,807,620
3.65%,
08/16/23
..................
37
39,980
Rolls-Royce
plc,
2.13%,
06/18/21
........
EUR
530
613,072
Signature
Aviation
US
Holdings,
Inc.,
5.38%,
05/01/26
(b)
.....................
USD
917
926,170
Spirit
AeroSystems
Inc.,
5.50%,
01/15/25
(b)
..
424
426,120
Thales
SA:
0.00%,
05/31/22
..................
EUR
3,300
3,870,207
0.75%,
06/07/23
..................
3,900
4,654,593
TransDigm
,
Inc.
(b)
:
8.00%,
12/15/25
..................
USD
2,380
2,588,250
6.25%,
03/15/26
..................
14,601
15,247,751
44,897,046
Airlines
—
0.1%
Avianca
Holdings
SA,
9.00%,
05/10/23
(b)(f)(g)
..
910
142,756
Continental
Airlines
Pass-Through
Trust,
Series
2000-1,
Class
B,
8.39%,
11/01/20
......
2
1,703
Gol
Finance
SA,
7.00%,
01/31/25
(b)
.......
610
425,182
Mileage
Plus
Holdings
LLC,
6.50%,
06/20/27
(b)
2,416
2,515,660
Security
Par
(000)
Value
Airlines
(continued)
Northwest
Airlines
Pass-Through
Trust,
Series
2002-1,
Class
G-2,
6.26%,
11/20/21
.....
USD
185
$
181,493
Spirit
Loyalty
Cayman
Ltd.,
8.00%,
09/20/25
(b)
206
218,242
3,485,036
Auto
Components
—
0.3%
Adient
US
LLC,
9.00%,
04/15/25
(b)
.......
233
256,883
Allison
Transmission,
Inc.,
5.00%,
10/01/24
(b)
.
647
653,509
Clarios
Global
LP
(b)
:
6.75%,
05/15/25
..................
4,278
4,502,595
6.25%,
05/15/26
..................
5,453
5,717,743
Conti-Gummi
Finance
BV,
1.13%,
09/25/24
..
EUR
2,240
2,678,551
Goodyear
Tire
&
Rubber
Co.
(The),
9.50%,
05/31/25
......................
USD
69
74,865
Icahn
Enterprises
LP:
4.75%,
09/15/24
..................
100
101,250
6.38%,
12/15/25
..................
485
498,563
6.25%,
05/15/26
..................
112
116,760
5.25%,
05/15/27
..................
1,804
1,879,407
ZF
Finance
GmbH,
3.00%,
09/21/25
......
EUR
4,600
5,244,804
ZF
North
America
Capital,
Inc.,
4.50%,
04/29/22
(b)
.....................
USD
2,431
2,485,697
24,210,627
Automobiles
—
1.8%
BMW
Finance
NV,
0.00%,
04/14/23
.......
EUR
6,120
7,167,272
BMW
US
Capital
LLC,
3.80%,
04/06/23
(b)
...
USD
23,200
24,996,570
Daimler
Finance
North
America
LLC,
3.35%,
05/04/21
(b)
.....................
5,520
5,608,071
Daimler
International
Finance
BV,
0.25%,
11/06/23
......................
EUR
1,970
2,307,209
Fiat
Chrysler
Automobiles
NV,
3.38%,
07/07/23
3,250
3,943,829
General
Motors
Co.,
5.40%,
10/02/23
.....
USD
4,920
5,423,623
Nissan
Motor
Acceptance
Corp.
(b)
:
2.55%,
03/08/21
..................
12,731
12,797,088
3.65%,
09/21/21
..................
25,000
25,496,124
Nissan
Motor
Co.
Ltd.:
1.94%,
09/15/23
..................
EUR
1,520
1,811,814
3.04%,
09/15/23
(b)
.................
USD
15,475
15,687,231
Tesla,
Inc.,
5.30%,
08/15/25
(b)
..........
1,197
1,238,895
Volkswagen
Group
of
America
Finance
LLC
(b)
:
2.70%,
09/26/22
..................
2,145
2,223,613
3.13%,
05/12/23
..................
23,300
24,595,865
133,297,204
Banks
—
5.4%
Banco
Bradesco
SA,
2.85%,
01/27/23
(b)
....
19,500
19,768,125
Banco
de
Credito
del
Peru,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
3.00%),
3.13%,
07/01/30
(b)(c)
........
690
690,000
Banco
de
Sabadell
SA:
0.88%,
07/22/25
..................
EUR
1,500
1,758,221
(EUR
Swap
Annual
1
Year
+
0.97%),
0.63%,
11/07/25
(c)
....................
1,900
2,195,397
(EUR
Swap
Annual
1
Year
+
1.55%),
1.13%,
03/11/27
(c)
....................
700
821,805
Banco
do
Brasil
SA,
4.75%,
03/20/24
......
USD
920
968,300
Banco
Internacional
del
Peru
SAA
Interbank,
3.25%,
10/04/26
(b)
................
2,050
2,140,969
Banco
Nacional
de
Panama,
2.50%,
08/11/30
(b)
1,305
1,284,329
Banco
Santander
SA:
2.71%,
06/27/24
..................
11,600
12,273,032
2.75%,
05/28/25
..................
10,800
11,328,693
Bancolombia
SA,
3.00%,
01/29/25
.......
690
689,828
Bank
Leumi
Le-Israel
BM,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
1.63%),
3.27%,
01/29/31
(b)(c)
........
1,798
1,804,743
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
83
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Banks
(continued)
Bank
of
America
Corp.
(c)
:
(LIBOR
USD
3
Month
+
0.37%),
2.74%,
01/23/22
.....................
USD
3,500
$
3,524,632
(LIBOR
USD
3
Month
+
1.02%),
2.88%,
04/24/23
.....................
5,690
5,885,673
(LIBOR
USD
3
Month
+
0.93%),
2.82%,
07/21/23
.....................
14,500
15,060,049
(LIBOR
USD
3
Month
+
0.79%),
3.00%,
12/20/23
.....................
11,000
11,547,748
(LIBOR
USD
3
Month
+
0.94%),
3.86%,
07/23/24
.....................
20,000
21,659,661
(SOFR
+
0.91%),
0.98%,
09/25/25
......
16,700
16,696,159
Bank
of
America
NA,
(LIBOR
USD
3
Month
+
0.65%),
3.34%,
01/25/23
(c)
...........
1,740
1,805,594
Banque
Federative
du
Credit
Mutuel
SA:
0.13%,
02/05/24
..................
EUR
3,400
4,008,414
2.63%,
03/18/24
..................
500
640,744
Barclays
Bank
plc,
1.70%,
05/12/22
.......
USD
6,025
6,128,990
Barclays
plc,
(LIBOR
USD
3
Month
+
1.40%),
4.61%,
02/15/23
(c)
................
6,970
7,294,017
BBVA
Bancomer
SA,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
4.31%),
5.87%,
09/13/34
(b)(c)
..........
561
568,861
BNP
Paribas
SA:
0.75%,
11/11/22
..................
EUR
3,900
4,659,123
(SOFR
+
2.07%),
2.22%,
06/09/26
(b)(c)
...
USD
7,260
7,486,438
CIT
Group,
Inc.,
5.00%,
08/01/23
........
1,188
1,232,550
Citigroup,
Inc.
(c)
:
(LIBOR
USD
3
Month
+
0.72%),
3.14%,
01/24/23
.....................
500
515,920
(LIBOR
USD
3
Month
+
0.95%),
2.88%,
07/24/23
.....................
20,000
20,753,472
(SOFR
+
2.75%),
3.11%,
04/08/26
......
12,805
13,859,318
Commerzbank
AG,
(EURIBOR
3
Month
+
1.30%),
0.75%,
03/24/26
(c)
...........
EUR
800
934,218
Credicorp
Ltd.,
2.75%,
06/17/25
(b)
........
USD
685
693,734
Danske
Bank
A/S
(b)(c)
:
(LIBOR
USD
3
Month
+
1.25%),
3.00%,
09/20/22
.....................
17,255
17,582,497
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.35%),
1.62%,
09/11/26
................
14,205
14,103,038
Discover
Bank,
3.35%,
02/06/23
.........
5,225
5,526,072
DNB
Bank
ASA,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
5
Year
+
0.85%),
1.13%,
09/16/26
(b)(c)
...............
11,420
11,393,163
ING
Groep
NV,
1.00%,
09/20/23
.........
EUR
4,500
5,429,557
Itau
Unibanco
Holding
SA,
3.25%,
01/24/25
(b)
.
USD
950
967,813
JPMorgan
Chase
&
Co.
(c)
:
(LIBOR
USD
3
Month
+
0.70%),
3.21%,
04/01/23
.....................
3,600
3,740,724
(LIBOR
USD
3
Month
+
0.89%),
3.80%,
07/23/24
.....................
27,900
30,223,545
(SOFR
+
1.85%),
2.08%,
04/22/26
......
20,755
21,705,161
KBC
Group
NV,
1.13%,
01/25/24
........
EUR
3,800
4,601,622
Lloyds
Banking
Group
plc,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
1.10%),
1.33%,
06/15/23
(c)
.........
USD
4,950
4,979,295
Mizuho
Financial
Group,
Inc.,
0.52%,
06/10/24
EUR
4,565
5,415,626
Natwest
Group
plc:
3.88%,
09/12/23
..................
USD
8,585
9,204,837
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.15%),
2.36%,
05/22/24
(c)
...............
9,520
9,767,086
Santander
Holdings
USA,
Inc.:
3.70%,
03/28/22
..................
5,480
5,681,018
3.50%,
06/07/24
..................
3,000
3,217,834
Security
Par
(000)
Value
Banks
(continued)
Santander
UK
Group
Holdings
plc:
3.57%,
01/10/23
..................
USD
1,715
$
1,772,222
(LIBOR
USD
3
Month
+
1.08%),
3.37%,
01/05/24
(c)
....................
3,715
3,879,149
Toronto-Dominion
Bank
(The),
0.38%,
04/25/24
EUR
2,625
3,107,996
UniCredit
SpA,
(US
Treasury
Yield
Curve
Rate
T
Note
Constant
Maturity
1
Year
+
2.30%),
2.57%,
09/22/26
(b)(c)
...............
USD
4,475
4,435,092
Wells
Fargo
&
Co.:
3.75%,
01/24/24
..................
18,005
19,562,811
(SOFR
+
1.60%),
1.65%,
06/02/24
(c)
.....
12,500
12,733,110
399,708,025
Beverages
—
0.2%
Central
American
Bottling
Corp.,
5.75%,
01/31/27
(b)
.....................
1,990
2,062,242
Coca-Cola
Femsa
SAB
de
CV,
1.85%,
09/01/32
410
413,403
Pernod
Ricard
SA:
0.00%,
10/24/23
..................
EUR
10,000
11,718,779
1.13%,
04/07/25
..................
1,900
2,328,202
16,522,626
Biotechnology
—
1.1%
AbbVie,
Inc.:
3.45%,
03/15/22
(b)
.................
USD
39,913
41,398,956
2.90%,
11/06/22
..................
1,945
2,039,574
2.80%,
03/15/23
(b)
.................
6,200
6,481,694
1.50%,
11/15/23
..................
EUR
5,760
7,035,020
1.25%,
06/01/24
(b)
.................
1,305
1,584,416
2.95%,
11/21/26
(b)
.................
USD
4,050
4,411,370
Gilead
Sciences,
Inc.,
0.75%,
09/29/23
....
21,270
21,314,667
84,265,697
Building
Products
—
0.1%
Carrier
Global
Corp.,
2.24%,
02/15/25
(b)
....
1,765
1,841,197
CRH
Finland
Services
OYJ,
0.88%,
11/05/23
.
EUR
1,670
2,006,844
Forterra
Finance
LLC,
6.50%,
07/15/25
(b)
...
USD
576
608,573
JELD-WEN,
Inc.,
6.25%,
05/15/25
(b)
......
243
258,795
Masonite
International
Corp.,
5.75%,
09/15/26
(b)
110
114,675
4,830,084
Capital
Markets
—
1.3%
Credit
Suisse
Group
AG,
3.57%,
01/09/23
(b)
..
8,565
8,859,536
Deutsche
Bank
AG,
4.25%,
02/04/21
......
11,560
11,682,786
Goldman
Sachs
Group,
Inc.
(The),
(EURIBOR
3
Month
+
0.55%),
0.11%,
04/21/23
(c)
.....
EUR
4,890
5,736,308
ING
Bank
NV:
0.00%,
04/08/22
..................
2,400
2,821,061
(EURIBOR
3
Month
+
0.40%),
0.00%,
04/08/22
(c)
....................
5,700
6,719,842
(EUR
Swap
Annual
5
Year
+
2.25%),
3.62%,
02/25/26
(c)
....................
4,443
5,274,831
Morgan
Stanley
(c)
:
(LIBOR
USD
3
Month
+
0.85%),
3.74%,
04/24/24
.....................
USD
3,550
3,821,301
(EURIBOR
3
Month
+
0.75%),
0.64%,
07/26/24
.....................
EUR
3,100
3,677,570
(SOFR
+
1.99%),
2.19%,
04/28/26
......
USD
18,245
19,107,710
MSCI,
Inc.,
5.38%,
05/15/27
(b)
..........
2,192
2,339,960
SURA
Asset
Management
SA,
4.88%,
04/17/24
(b)
.....................
1,290
1,397,917
UBS
AG:
0.75%,
04/21/23
..................
EUR
4,405
5,275,476
(EUR
Swap
Annual
5
Year
+
3.40%),
4.75%,
02/12/26
(c)
....................
6,025
7,143,481
UBS
Group
AG
(c)
:
(LIBOR
USD
3
Month
+
0.95%),
2.86%,
08/15/23
(b)
....................
USD
5,810
6,025,540
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
84
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Capital
Markets
(continued)
(EUR
Swap
Annual
1
Year
+
0.55%),
0.25%,
01/29/26
.....................
EUR
2,640
$
3,094,302
Volvo
Treasury
AB:
(EURIBOR
3
Month
+
0.65%),
0.16%,
09/13/21
(c)
....................
4,200
4,931,303
0.00%,
02/11/23
..................
940
1,101,684
99,010,608
Chemicals
—
0.7%
Air
Liquide
Finance
SA,
0.38%,
04/18/22
...
2,500
2,949,445
Air
Products
&
Chemicals,
Inc.,
1.50%,
10/15/25
......................
USD
865
897,318
Axalta
Coating
Systems
LLC
(b)
:
4.88%,
08/15/24
..................
308
313,775
4.75%,
06/15/27
..................
1,384
1,415,140
BASF
SE:
2.00%,
12/05/22
..................
EUR
4,520
5,542,476
0.10%,
06/05/23
..................
3,500
4,120,227
Braskem
Idesa
SAPI,
7.45%,
11/15/29
(b)
....
USD
560
528,850
Chemours
Co.
(The):
6.63%,
05/15/23
..................
522
528,261
7.00%,
05/15/25
..................
125
126,563
Covestro
AG,
0.88%,
02/03/26
..........
EUR
1,430
1,692,835
DuPont
de
Nemours,
Inc.:
2.17%,
05/01/23
..................
USD
6,340
6,405,393
4.21%,
11/15/23
..................
9,500
10,431,544
Equate
Petrochemical
BV,
4.25%,
11/03/26
(b)
.
2,077
2,176,551
GCP
Applied
Technologies,
Inc.,
5.50%,
04/15/26
(b)
.....................
2,663
2,716,260
Nutrition
&
Biosciences,
Inc.,
1.23%,
10/01/25
(b)
9,355
9,331,568
Phosagro
OAO,
3.05%,
01/23/25
(b)
.......
1,180
1,201,387
WR
Grace
&
Co.,
5.63%,
10/01/24
(b)
......
472
501,500
WR
Grace
&
Co.-Conn.,
4.88%,
06/15/27
(b)
..
2,680
2,767,636
53,646,729
Commercial
Services
&
Supplies
—
0.5%
ACCO
Brands
Corp.,
5.25%,
12/15/24
(b)
....
513
525,184
ADT
Security
Corp.
(The),
4.13%,
06/15/23
..
396
414,216
Allied
Universal
Holdco
LLC,
6.63%,
07/15/26
(b)
8,845
9,419,925
APX
Group,
Inc.,
6.75%,
02/15/27
(b)
.......
658
682,675
Aramark
Services,
Inc.:
5.00%,
04/01/25
(b)
.................
5,662
5,743,533
6.38%,
05/01/25
(b)
.................
2,457
2,559,395
4.75%,
06/01/26
..................
1,313
1,328,493
5.00%,
02/01/28
(b)
.................
118
118,885
Brink's
Co.
(The),
5.50%,
07/15/25
(b)
......
40
41,700
Garda
World
Security
Corp.,
4.63%,
02/15/27
(b)
1,223
1,229,115
GFL
Environmental,
Inc.
(b)
:
4.25%,
06/01/25
..................
226
228,260
3.75%,
08/01/25
..................
532
534,939
5.13%,
12/15/26
..................
6,324
6,530,163
Motability
Operations
Group
plc,
1.63%,
06/09/23
......................
EUR
5,305
6,530,468
Prime
Security
Services
Borrower
LLC
(b)
:
5.25%,
04/15/24
..................
USD
782
819,145
5.75%,
04/15/26
..................
2,668
2,853,106
3.38%,
08/31/27
..................
796
763,559
40,322,761
Communications
Equipment
—
0.1%
(b)
CommScope
Technologies
LLC,
6.00%,
06/15/25
......................
1,266
1,283,154
CommScope
,
Inc.:
6.00%,
03/01/26
..................
3,442
3,588,285
8.25%,
03/01/27
..................
184
191,360
ViaSat,
Inc.,
5.63%,
04/15/27
..........
4,493
4,622,174
9,684,973
Security
Par
(000)
Value
Construction
&
Engineering
—
0.0%
(b)
Aeropuertos
Dominicanos
Siglo
XXI
SA,
6.75%,
03/30/29
......................
USD
530
$
471,699
Mexico
City
Airport
Trust,
4.25%,
10/31/26
..
2,080
1,840,800
2,312,499
Construction
Materials
—
0.0%
(b)
Cemex
SAB
de
CV,
5.20%,
09/17/30
......
1,455
1,460,311
Inversiones
CMPC
SA,
3.85%,
01/13/30
....
1,170
1,270,912
2,731,223
Consumer
Finance
—
3.0%
AerCap
Ireland
Capital
DAC:
3.95%,
02/01/22
..................
7,750
7,846,289
3.50%,
05/26/22
..................
21,035
21,244,696
4.63%,
07/01/22
..................
4,515
4,635,312
2.88%,
08/14/24
..................
9,600
9,246,154
Capital
One
Financial
Corp.,
2.40%,
10/30/20
4,420
4,420,000
FCA
Bank
SpA,
0.50%,
09/18/23
........
EUR
2,474
2,897,433
Ford
Motor
Credit
Co.
LLC:
3.34%,
03/18/21
..................
USD
4,000
4,001,000
3.34%,
03/28/22
..................
9,589
9,551,603
2.98%,
08/03/22
..................
503
495,455
3.35%,
11/01/22
..................
357
351,645
4.14%,
02/15/23
..................
10,623
10,689,075
3.37%,
11/17/23
..................
15,574
15,340,390
3.81%,
01/09/24
..................
1,611
1,594,890
5.13%,
06/16/25
..................
3,947
4,070,344
General
Motors
Financial
Co.,
Inc.:
3.70%,
11/24/20
..................
7,720
7,731,403
3.20%,
07/06/21
..................
29,901
30,353,467
4.20%,
11/06/21
..................
14,325
14,785,474
5.20%,
03/20/23
..................
19,565
21,224,951
Muthoot
Finance
Ltd.,
6.13%,
10/31/22
(b)
...
1,110
1,126,997
Navient
Corp.:
7.25%,
09/25/23
..................
62
64,015
6.13%,
03/25/24
..................
1,008
1,015,560
6.75%,
06/15/26
..................
296
295,260
OneMain
Finance
Corp.:
6.88%,
03/15/25
..................
145
160,903
7.13%,
03/15/26
..................
2,158
2,410,917
Synchrony
Financial:
3.75%,
08/15/21
..................
15,000
15,301,236
2.85%,
07/25/22
..................
8,300
8,541,930
Volkswagen
Bank
GmbH,
1.88%,
01/31/24
..
EUR
7,000
8,540,442
Volkswagen
Leasing
GmbH:
(EURIBOR
3
Month
+
0.45%),
0.00%,
08/02/21
(c)
....................
5,600
6,560,270
1.00%,
02/16/23
..................
9,800
11,655,926
226,153,037
Containers
&
Packaging
—
0.4%
Ardagh
Packaging
Finance
plc
(b)
:
5.25%,
04/30/25
..................
USD
2,486
2,597,870
4.13%,
08/15/26
..................
4,272
4,330,740
Crown
Americas
LLC:
4.75%,
02/01/26
..................
2,705
2,806,437
4.25%,
09/30/26
..................
948
981,180
Graphic
Packaging
International
LLC,
4.88%,
11/15/22
......................
389
404,074
LABL
Escrow
Issuer
LLC,
6.75%,
07/15/26
(b)
.
609
642,495
Mauser
Packaging
Solutions
Holding
Co.,
5.50%,
04/15/24
(b)
................
4,578
4,594,206
Trivium
Packaging
Finance
BV,
5.50%,
08/15/26
(a)(b)
....................
6,561
6,793,751
WRKCo,
Inc.,
3.75%,
03/15/25
..........
2,210
2,469,734
25,620,487
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
85
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Distributors
—
0.0%
American
Builders
&
Contractors
Supply
Co.,
Inc.,
5.88%,
05/15/26
(b)
.............
USD
705
$
731,437
Diversified
Consumer
Services
—
0.1%
(b)
frontdoor,
Inc.,
6.75%,
08/15/26
.........
1,668
1,776,420
Graham
Holdings
Co.,
5.75%,
06/01/26
....
2,200
2,315,500
4,091,920
Diversified
Financial
Services
—
1.2%
GE
Capital
Funding
LLC,
3.45%,
05/15/25
(b)
.
16,900
18,138,931
GE
Capital
International
Funding
Co.
Unlimited
Co.,
2.34%,
11/15/20
..............
42,130
42,224,282
Operadora
de
Servicios
Mega
SA
de
CV
Sofom
ER,
8.25%,
02/11/25
(b)
.............
990
906,469
Petronas
Capital
Ltd.,
3.50%,
04/21/30
(b)
....
1,954
2,184,787
Refinitiv
US
Holdings,
Inc.,
6.25%,
05/15/26
(b)
1,460
1,562,200
Sabre
GLBL,
Inc.
(b)
:
5.25%,
11/15/23
..................
280
273,700
9.25%,
04/15/25
..................
925
1,018,027
7.38%,
09/01/25
..................
798
805,980
Siemens
Financieringsmaatschappij
NV:
0.00%,
02/20/23
..................
EUR
6,500
7,643,864
0.38%,
09/06/23
..................
5,710
6,796,061
Synchrony
Bank,
3.65%,
05/24/21
.......
USD
10,000
10,151,592
91,705,893
Diversified
Telecommunication
Services
—
1.2%
Altice
France
SA
(b)
:
7.38%,
05/01/26
..................
4,195
4,395,941
8.13%,
02/01/27
..................
5,744
6,260,960
AT&T,
Inc.,
1.05%,
09/05/23
...........
EUR
3,815
4,596,349
CCO
Holdings
LLC
(b)
:
5.13%,
05/01/27
..................
USD
8,193
8,620,838
5.88%,
05/01/27
..................
741
777,976
CenturyLink,
Inc.:
Series
W,
6.75%,
12/01/23
...........
1,911
2,094,934
Series
Y,
7.50%,
04/01/24
...........
931
1,042,347
5.13%,
12/15/26
(b)
.................
6,667
6,849,609
4.00%,
02/15/27
(b)
.................
2,436
2,474,757
Deutsche
Telekom
International
Finance
BV,
4.25%,
07/13/22
.................
EUR
7,135
9,019,357
Level
3
Financing,
Inc.,
5.25%,
03/15/26
....
USD
3,858
3,996,695
Orange
SA,
0.75%,
09/11/23
...........
EUR
8,000
9,590,641
QualityTech
LP,
4.75%,
11/15/25
(b)
.......
USD
475
492,670
Telecom
Italia
SpA,
5.30%,
05/30/24
(b)
.....
3,010
3,258,325
Telesat
Canada,
4.88%,
06/01/27
(b)
.......
3,306
3,319,389
Telstra
Corp.
Ltd.,
3.50%,
09/21/22
.......
EUR
4,700
5,898,014
Virgin
Media
Secured
Finance
plc,
5.50%,
08/15/26
(b)
.....................
USD
3,239
3,376,658
Zayo
Group
Holdings,
Inc.,
4.00%,
03/01/27
(b)
9,353
9,205,456
85,270,916
Electric
Utilities
—
1.0%
Adani
Electricity
Mumbai
Ltd.,
3.95%,
02/12/30
(b)
.....................
390
380,494
AES
Panama
Generation
Holdings
SRL,
4.38%,
05/31/30
(b)
.....................
1,185
1,214,255
Alliant
Energy
Finance
LLC,
3.75%,
06/15/23
(b)
8,085
8,681,063
Duke
Energy
Corp.:
3.95%,
10/15/23
..................
8,435
9,195,872
0.90%,
09/15/25
..................
5,885
5,885,838
Enel
Americas
SA,
4.00%,
10/25/26
......
2,110
2,297,263
Enel
Finance
International
NV,
0.00%,
06/17/24
EUR
7,930
9,277,142
Enexis
Holding
NV,
3.38%,
01/26/22
......
2,200
2,696,092
ESB
Finance
DAC,
3.49%,
01/12/24
......
2,185
2,844,811
Exelon
Corp.,
2.45%,
04/15/21
..........
USD
4,890
4,932,334
FirstEnergy
Corp.,
Series
A,
2.85%,
07/15/22
.
4,346
4,454,704
ITC
Holdings
Corp.,
2.70%,
11/15/22
......
2,180
2,273,763
Kallpa
Generacion
SA,
4.88%,
05/24/26
....
441
474,902
Security
Par
(000)
Value
Electric
Utilities
(continued)
NextEra
Energy
Capital
Holdings,
Inc.,
2.75%,
05/01/25
......................
USD
5,870
$
6,344,565
NextEra
Energy
Operating
Partners
LP,
4.25%,
07/15/24
(b)
.....................
2,486
2,592,152
NRG
Energy,
Inc.,
6.63%,
01/15/27
.......
3,296
3,485,520
RTE
Reseau
de
Transport
d'Electricite
SADIR:
4.13%,
02/03/21
..................
EUR
3,400
4,042,115
1.63%,
10/08/24
..................
1,000
1,248,232
Vistra
Operations
Co.
LLC
(b)
:
5.63%,
02/15/27
..................
USD
4,205
4,437,116
5.00%,
07/31/27
..................
934
978,832
77,737,065
Electrical
Equipment
—
0.2%
Eaton
Capital
Unlimited
Co.,
0.02%,
05/14/21
EUR
4,595
5,386,567
Schneider
Electric
SE:
0.00%,
06/12/23
..................
1,700
1,999,519
0.25%,
09/09/24
..................
2,900
3,446,782
Sensata
Technologies
BV
(b)
:
5.63%,
11/01/24
..................
USD
800
868,000
5.00%,
10/01/25
..................
2,325
2,499,375
14,200,243
Electronic
Equipment,
Instruments
&
Components
—
0.1%
Amphenol
Technologies
Holding
GmbH,
0.75%,
05/04/26
......................
EUR
2,645
3,138,034
CDW
LLC:
5.50%,
12/01/24
..................
USD
1,312
1,431,720
4.13%,
05/01/25
..................
4,526
4,673,095
9,242,849
Energy
Equipment
&
Services
—
0.1%
Archrock
Partners
LP,
6.88%,
04/01/27
(b)
....
3,363
3,221,351
Halliburton
Co.,
3.80%,
11/15/25
........
398
432,461
Schlumberger
Finance
Canada
Ltd.,
1.40%,
09/17/25
......................
2,895
2,921,185
USA
Compression
Partners
LP,
6.88%,
04/01/26
......................
3,689
3,656,721
10,231,718
Entertainment
—
0.1%
Live
Nation
Entertainment,
Inc.,
6.50%,
05/15/27
(b)
.....................
3,626
3,913,324
Netflix,
Inc.,
5.88%,
02/15/25
...........
3,598
4,056,673
7,969,997
Equity
Real
Estate
Investment
Trusts
(REITs)
—
1.1%
American
Tower
Corp.:
3.38%,
05/15/24
..................
6,725
7,281,198
2.40%,
03/15/25
..................
4,355
4,602,473
1.30%,
09/15/25
..................
2,245
2,268,902
1.95%,
05/22/26
..................
EUR
2,710
3,442,736
Crown
Castle
International
Corp.:
3.20%,
09/01/24
..................
USD
3,205
3,455,409
1.35%,
07/15/25
..................
9,485
9,587,919
CyrusOne
LP,
1.45%,
01/22/27
.........
EUR
945
1,099,064
Diversified
Healthcare
Trust,
9.75%,
06/15/25
USD
895
995,491
Equinix
,
Inc.:
2.63%,
11/18/24
..................
30
31,898
1.25%,
07/15/25
..................
7,215
7,264,433
1.00%,
09/15/25
..................
7,500
7,446,336
MGM
Growth
Properties
Operating
Partnership
LP:
5.63%,
05/01/24
..................
5,150
5,460,442
4.50%,
09/01/26
..................
1,494
1,515,685
5.75%,
02/01/27
..................
1,115
1,201,413
Nationwide
Health
Properties,
Inc.,
6.59%,
07/07/38
......................
1,400
1,663,763
SBA
Communications
Corp.,
3.88%,
02/15/27
(b)
5,926
6,014,890
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
86
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Equity
Real
Estate
Investment
Trusts
(REITs)
(continued)
Service
Properties
Trust,
7.50%,
09/15/25
...
USD
496
$
527,099
Simon
International
Finance
SCA,
1.38%,
11/18/22
......................
EUR
1,535
1,821,019
Trust
Fibra
Uno,
4.87%,
01/15/30
(b)
.......
USD
2,770
2,788,698
VICI
Properties
LP
(b)
:
3.50%,
02/15/25
..................
248
245,521
4.25%,
12/01/26
..................
4,287
4,306,934
3.75%,
02/15/27
..................
5,252
5,164,187
78,185,510
Food
&
Staples
Retailing
—
0.1%
Albertsons
Cos.,
Inc.
(b)
:
3.25%,
03/15/26
..................
907
900,034
4.63%,
01/15/27
..................
3,909
3,999,650
4,899,684
Food
Products
—
0.4%
BRF
GmbH,
4.35%,
09/29/26
..........
508
525,304
Darling
Ingredients,
Inc.,
5.25%,
04/15/27
(b)
..
859
901,950
General
Mills,
Inc.,
0.45%,
01/15/26
......
EUR
1,420
1,683,063
JBS
USA
LUX
SA,
5.75%,
06/15/25
(b)
......
USD
3,845
3,954,775
Kraft
Heinz
Foods
Co.:
3.95%,
07/15/25
..................
10,026
10,878,693
3.88%,
05/15/27
(b)
.................
4,545
4,814,112
Minerva
Luxembourg
SA,
6.50%,
09/20/26
(b)
.
790
820,612
Post
Holdings,
Inc.
(b)
:
5.00%,
08/15/26
..................
3,575
3,664,375
5.75%,
03/01/27
..................
1,617
1,699,871
28,942,755
Gas
Utilities
—
0.0%
Redexis
Gas
Finance
BV,
1.88%,
05/28/25
..
EUR
900
1,102,324
Health
Care
Equipment
&
Supplies
—
0.9%
Abbott
Ireland
Financing
DAC:
0.88%,
09/27/23
..................
4,445
5,361,018
0.10%,
11/19/24
..................
3,290
3,878,190
Becton
Dickinson
and
Co.:
2.89%,
06/06/22
..................
USD
30,000
31,062,302
1.40%,
05/24/23
..................
EUR
1,325
1,596,513
Becton
Dickinson
Euro
Finance
SARL,
1.21%,
06/04/26
......................
1,935
2,327,078
Danaher
Corp.,
1.70%,
03/30/24
........
1,600
1,976,469
Medtronic
Global
Holdings
SCA:
0.00%,
12/02/22
..................
11,190
13,138,135
0.38%,
03/07/23
..................
4,330
5,127,994
0.00%,
10/15/25
..................
2,380
2,780,888
67,248,587
Health
Care
Providers
&
Services
—
0.9%
Anthem,
Inc.,
3.50%,
08/15/24
..........
USD
4,219
4,625,330
Centene
Corp.
(b)
:
5.38%,
06/01/26
..................
2,359
2,485,796
5.38%,
08/15/26
..................
6,764
7,164,260
Community
Health
Systems,
Inc.
(b)
:
8.63%,
01/15/24
..................
136
135,320
6.63%,
02/15/25
..................
2,520
2,438,100
8.00%,
03/15/26
..................
2,543
2,499,769
CVS
Health
Corp.:
4.10%,
03/25/25
..................
7,929
8,956,836
1.30%,
08/21/27
..................
7,840
7,722,340
Express
Scripts
Holding
Co.,
2.60%,
11/30/20
8,700
8,730,537
HCA,
Inc.:
5.38%,
02/01/25
..................
3,605
3,947,475
5.38%,
09/01/26
..................
5,296
5,852,080
LifePoint
Health,
Inc.,
6.75%,
04/15/25
(b)
....
1,162
1,223,005
MEDNAX,
Inc.,
6.25%,
01/15/27
(b)
........
1,124
1,166,105
Molina
Healthcare,
Inc.,
4.88%,
06/15/25
(b)
..
89
90,780
Security
Par
(000)
Value
Health
Care
Providers
&
Services
(continued)
Tenet
Healthcare
Corp.:
4.63%,
07/15/24
..................
USD
300
$
301,500
4.63%,
09/01/24
(b)
.................
1,518
1,530,326
4.88%,
01/01/26
(b)
.................
6,516
6,634,331
Vizient,
Inc.,
6.25%,
05/15/27
(b)
.........
855
895,613
66,399,503
Health
Care
Technology
—
0.1%
IQVIA,
Inc.
(b)
:
5.00%,
10/15/26
..................
200
209,000
5.00%,
05/15/27
..................
3,184
3,338,647
3,547,647
Hotels,
Restaurants
&
Leisure
—
1.1%
1011778
BC
ULC
(b)
:
5.75%,
04/15/25
..................
3,257
3,476,847
5.00%,
10/15/25
..................
6,878
7,052,426
Boyne
USA,
Inc.,
7.25%,
05/01/25
(b)
......
492
516,600
Caesars
Entertainment,
Inc.,
6.25%,
07/01/25
(b)
5,779
6,040,471
Caesars
Resort
Collection
LLC,
5.75%,
07/01/25
(b)
.....................
678
699,187
Carnival
Corp.
(b)
:
11.50%,
04/01/23
.................
469
525,583
10.50%,
02/01/26
.................
256
283,520
9.88%,
08/01/27
..................
268
283,970
Cedar
Fair
LP,
5.50%,
05/01/25
(b)
........
1,535
1,581,050
Churchill
Downs,
Inc.,
5.50%,
04/01/27
(b)
...
4,322
4,511,304
Hilton
Domestic
Operating
Co.,
Inc.:
4.25%,
09/01/24
..................
1,028
1,022,860
5.38%,
05/01/25
(b)
.................
5,837
6,095,579
5.13%,
05/01/26
..................
1,739
1,789,901
Hilton
Worldwide
Finance
LLC,
4.88%,
04/01/27
......................
1,270
1,290,225
KFC
Holding
Co.,
5.25%,
06/01/26
(b)
......
505
524,695
Marriott
International,
Inc.,
2.88%,
03/01/21
..
22,674
22,814,984
MGM
Resorts
International:
7.75%,
03/15/22
..................
2,272
2,394,801
6.00%,
03/15/23
..................
475
492,767
5.75%,
06/15/25
..................
757
793,942
NCL
Corp.
Ltd.,
10.25%,
02/01/26
(b)
.......
80
83,350
Powdr
Corp.,
6.00%,
08/01/25
(b)
.........
356
364,010
Scientific
Games
International,
Inc.,
5.00%,
10/15/25
(b)
.....................
2,013
2,023,065
Six
Flags
Theme
Parks,
Inc.,
7.00%,
07/01/25
(b)
2,793
2,971,054
Vail
Resorts,
Inc.,
6.25%,
05/15/25
(b)
......
244
258,945
Wyndham
Destinations,
Inc.,
6.63%,
07/31/26
(b)
305
319,521
Wynn
Las
Vegas
LLC,
5.25%,
05/15/27
(b)
...
893
830,490
Wynn
Resorts
Finance
LLC,
7.75%,
04/15/25
(b)
2,509
2,657,244
Yum!
Brands,
Inc.,
7.75%,
04/01/25
(b)
......
6,221
6,899,400
78,597,791
Household
Durables
—
0.2%
CD&R
Smokey
Buyer,
Inc.,
6.75%,
07/15/25
(b)
248
261,640
Lennar
Corp.,
5.25%,
06/01/26
.........
6,565
7,369,212
Meritage
Homes
Corp.,
5.13%,
06/06/27
....
507
561,502
Picasso
Finance
Sub,
Inc.,
6.13%,
06/15/25
(b)
2,496
2,688,541
PulteGroup,
Inc.:
5.50%,
03/01/26
..................
515
587,100
5.00%,
01/15/27
..................
2,158
2,441,238
TRI
Pointe
Group,
Inc.,
5.25%,
06/01/27
....
961
1,025,868
14,935,101
Household
Products
—
0.0%
(b)
Energizer
Holdings,
Inc.,
7.75%,
01/15/27
...
1,242
1,356,885
Kimberly-Clark
de
Mexico
SAB
de
CV,
2.43%,
07/01/31
......................
605
618,613
1,975,498
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
87
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Independent
Power
and
Renewable
Electricity
Producers
—
0.1%
Calpine
Corp.,
5.25%,
06/01/26
(b)
........
USD
4,029
$
4,185,648
Clearway
Energy
Operating
LLC,
5.75%,
10/15/25
......................
2,670
2,803,500
Colbun
SA,
3.15%,
03/06/30
(b)
..........
295
317,678
7,306,826
Industrial
Conglomerates
—
0.2%
Grupo
KUO
SAB
de
CV,
5.75%,
07/07/27
(b)
..
560
540,750
Honeywell
International,
Inc.,
1.30%,
02/22/23
EUR
6,450
7,799,819
Roper
Technologies,
Inc.,
1.00%,
09/15/25
..
USD
4,530
4,539,776
12,880,345
Insurance
—
0.1%
AmWINS
Group,
Inc.,
7.75%,
07/01/26
(b)
....
201
215,070
Marsh
&
McLennan
Cos.,
Inc.,
1.35%,
09/21/26
EUR
3,040
3,755,812
Willis
Towers
Watson
plc,
5.75%,
03/15/21
..
USD
2,206
2,255,285
6,226,167
Interactive
Media
&
Services
—
0.1%
Baidu,
Inc.,
2.88%,
07/06/22
...........
8,205
8,451,150
Tencent
Holdings
Ltd.,
2.39%,
06/03/30
(b)
...
2,042
2,081,023
10,532,173
Internet
&
Direct
Marketing
Retail
—
0.1%
Expedia
Group,
Inc.,
3.60%,
12/15/23
(b)
....
9,090
9,287,359
IT
Services
—
0.2%
Amadeus
IT
Group
SA,
2.50%,
05/20/24
....
EUR
6,100
7,443,702
Cablevision
Lightpath
LLC,
3.88%,
09/15/27
(b)
USD
884
884,000
Capgemini
SE,
0.63%,
06/23/25
.........
EUR
2,400
2,865,025
Presidio
Holdings,
Inc.,
4.88%,
02/01/27
(b)
...
USD
769
776,690
Tempo
Acquisition
LLC,
5.75%,
06/01/25
(b)
..
200
209,500
12,178,917
Leisure
Products
—
0.0%
Mattel,
Inc.,
6.75%,
12/31/25
(b)
..........
1,806
1,905,330
Life
Sciences
Tools
&
Services
—
0.0%
Thermo
Fisher
Scientific,
Inc.,
2.00%,
04/15/25
EUR
2,550
3,234,347
Machinery
—
0.3%
Atlas
Copco
AB,
2.50%,
02/28/23
........
5,700
7,107,360
Colfax
Corp.,
6.38%,
02/15/26
(b)
.........
USD
2,665
2,824,900
EnPro
Industries,
Inc.,
5.75%,
10/15/26
....
156
164,580
KION
Group
AG,
1.63%,
09/24/25
........
EUR
2,200
2,581,454
Mueller
Water
Products,
Inc.,
5.50%,
06/15/26
(b)
USD
981
1,012,882
Parker-Hannifin
Corp.,
2.70%,
06/14/24
....
2,115
2,264,415
RBS
Global,
Inc.,
4.88%,
12/15/25
(b)
......
1,791
1,815,626
Stevens
Holding
Co.,
Inc.,
6.13%,
10/01/26
(b)
.
916
980,120
Terex
Corp.,
5.63%,
02/01/25
(b)
.........
2,967
2,974,418
Vertical
US
Newco,
Inc.,
5.25%,
07/15/27
(b)
..
2,166
2,251,048
23,976,803
Media
—
1.7%
Altice
Financing
SA,
7.50%,
05/15/26
(b)
.....
7,984
8,451,303
AMC
Networks,
Inc.:
5.00%,
04/01/24
..................
766
783,235
4.75%,
08/01/25
..................
186
192,267
Cable
Onda
SA,
4.50%,
01/30/30
(b)
.......
590
614,706
Charter
Communications
Operating
LLC:
4.46%,
07/23/22
..................
9,000
9,528,634
4.50%,
02/01/24
..................
12,280
13,616,268
4.91%,
07/23/25
..................
9,000
10,406,005
Clear
Channel
International
BV,
6.63%,
08/01/25
(b)
.....................
981
1,003,367
Clear
Channel
Worldwide
Holdings,
Inc.,
5.13%,
08/15/27
(b)
................
4,709
4,521,817
Cox
Communications,
Inc.,
3.15%,
08/15/24
(b)
7,755
8,344,339
CSC
Holdings
LLC:
5.25%,
06/01/24
..................
5,780
6,199,050
5.50%,
05/15/26
(b)
.................
4,125
4,290,000
Security
Par
(000)
Value
Media
(continued)
DISH
DBS
Corp.:
5.88%,
07/15/22
..................
USD
1,722
$
1,790,880
5.00%,
03/15/23
..................
1,504
1,534,080
7.75%,
07/01/26
..................
2,347
2,580,198
GCI
LLC,
6.63%,
06/15/24
(b)
...........
47
50,412
Informa
plc,
1.50%,
07/05/23
...........
EUR
5,000
5,837,546
Interpublic
Group
of
Cos.,
Inc.
(The):
3.50%,
10/01/20
..................
USD
4,490
4,490,000
3.75%,
10/01/21
..................
1,545
1,593,788
JCDecaux
SA,
2.00%,
10/24/24
.........
EUR
1,900
2,325,048
MMS
USA
Investments,
Inc.,
0.63%,
06/13/25
3,300
3,890,187
Radiate
Holdco
LLC,
4.50%,
09/15/26
(b)
....
USD
1,626
1,625,659
RELX
Finance
BV,
0.00%,
03/18/24
......
EUR
1,620
1,896,824
Sirius
XM
Radio,
Inc.
(b)
:
4.63%,
07/15/24
..................
USD
2,735
2,829,016
5.38%,
07/15/26
..................
2,545
2,648,581
5.00%,
08/01/27
..................
1,019
1,062,308
Sky
Ltd.,
1.50%,
09/15/21
.............
EUR
2,040
2,430,086
Univision
Communications,
Inc.,
6.63%,
06/01/27
(b)
.....................
USD
3,361
3,281,176
ViacomCBS,
Inc.,
3.88%,
04/01/24
.......
3,860
4,206,107
Videotron
Ltd.,
5.13%,
04/15/27
(b)
........
2,464
2,592,128
WPP
Finance
2013,
3.00%,
11/20/23
......
EUR
1,610
2,060,569
Ziggo
Bond
Co.
BV,
6.00%,
01/15/27
(b)
.....
USD
836
864,215
Ziggo
BV,
5.50%,
01/15/27
(b)
...........
7,120
7,458,200
124,997,999
Metals
&
Mining
—
0.4%
Anglo
American
Capital
plc,
4.13%,
04/15/21
(b)
2,221
2,255,584
AngloGold
Ashanti
Holdings
plc,
3.75%,
10/01/30
......................
455
464,669
Arconic
Corp.,
6.00%,
05/15/25
(b)
........
1,561
1,667,031
Constellium
SE
(b)
:
5.75%,
05/15/24
..................
592
602,360
6.63%,
03/01/25
..................
500
511,563
5.88%,
02/15/26
..................
5,610
5,756,084
Freeport-McMoRan,
Inc.,
4.55%,
11/14/24
...
1,882
2,022,736
Fresnillo
plc,
4.25%,
10/02/50
(b)
.........
1,130
1,116,522
Gold
Fields
Orogen
Holdings
BVI
Ltd.,
5.13%,
05/15/24
(b)
.....................
1,260
1,368,675
Industrias
Penoles
SAB
de
CV,
4.75%,
08/06/50
(b)
.....................
685
705,023
Kaiser
Aluminum
Corp.,
6.50%,
05/01/25
(b)
..
236
243,266
Nexa
Resources
SA,
5.38%,
05/04/27
(b)
....
2,226
2,317,823
Novelis
Corp.,
5.88%,
09/30/26
(b)
........
6,444
6,621,210
Nucor
Corp.,
2.00%,
06/01/25
..........
1,245
1,299,479
Steel
Dynamics,
Inc.,
2.40%,
06/15/25
.....
765
798,180
United
States
Steel
Corp.,
12.00%,
06/01/25
(b)
750
798,368
Usiminas
International
SARL,
5.88%,
07/18/26
(b)
.....................
510
519,403
Vale
Overseas
Ltd.,
3.75%,
07/08/30
......
1,040
1,068,340
30,136,316
Multiline
Retail
—
0.0%
Macy's,
Inc.,
8.38%,
06/15/25
(b)
.........
1,621
1,676,001
Multi-Utilities
—
0.6%
CenterPoint
Energy,
Inc.,
2.50%,
09/01/22
..
5,150
5,322,257
Dominion
Energy,
Inc.,
2.72%,
08/15/21
(a)
...
10,910
11,109,790
E.ON
SE,
0.00%,
10/24/22
............
EUR
5,720
6,719,626
Engie
SA,
0.38%,
02/28/23
............
3,600
4,266,903
innogy
Finance
BV,
0.75%,
11/30/22
......
1,150
1,369,901
National
Grid
Electricity
Transmission
plc,
0.19%,
01/20/25
.................
1,490
1,758,183
Sempra
Energy,
(LIBOR
USD
3
Month
+
0.50%),
0.78%,
01/15/21
(c)
...........
USD
6,185
6,185,559
Veolia
Environnement
SA,
0.67%,
03/30/22
..
EUR
5,400
6,390,301
43,122,520
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
88
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
—
3.3%
BP
Capital
Markets
plc,
1.11%,
02/16/23
....
EUR
3,995
$
4,821,938
Cenovus
Energy,
Inc.:
3.00%,
08/15/22
..................
USD
59
57,512
5.38%,
07/15/25
..................
1,103
1,061,568
Cheniere
Energy
Partners
LP:
5.25%,
10/01/25
..................
747
764,181
5.63%,
10/01/26
..................
1,242
1,291,680
CNX
Resources
Corp.,
7.25%,
03/14/27
(b)
...
466
475,320
Continental
Resources,
Inc.:
5.00%,
09/15/22
..................
731
725,576
4.50%,
04/15/23
..................
592
564,176
CrownRock
LP,
5.63%,
10/15/25
(b)
.......
5,421
5,109,292
DCP
Midstream
Operating
LP:
5.38%,
07/15/25
..................
3,185
3,283,990
5.63%,
07/15/27
..................
867
886,941
Diamondback
Energy,
Inc.:
2.88%,
12/01/24
..................
8,710
8,818,941
4.75%,
05/31/25
..................
8,600
9,277,146
Endeavor
Energy
Resources
LP
(b)
:
6.63%,
07/15/25
..................
1,005
1,032,638
5.50%,
01/30/26
..................
2,171
2,154,717
Energy
Transfer
Operating
LP:
3.60%,
02/01/23
..................
2,900
2,984,233
4.25%,
03/15/23
..................
35,795
37,217,546
5.88%,
01/15/24
..................
10,825
11,918,190
4.50%,
04/15/24
..................
1,433
1,517,887
Enterprise
Products
Operating
LLC,
2.85%,
04/15/21
......................
5,800
5,864,628
EQM
Midstream
Partners
LP
(b)
:
6.00%,
07/01/25
..................
1,010
1,041,563
6.50%,
07/01/27
..................
903
957,198
Exxon
Mobil
Corp.,
0.14%,
06/26/24
......
EUR
8,510
10,015,185
Geopark
Ltd.,
5.50%,
01/17/27
(b)
.........
USD
520
458,087
GNL
Quintero
SA,
4.63%,
07/31/29
.......
2,750
2,944,013
Kinder
Morgan
Energy
Partners
LP,
4.25%,
09/01/24
......................
1,530
1,692,987
Kinder
Morgan,
Inc.:
5.00%,
02/15/21
(b)
.................
7,000
7,087,859
3.15%,
01/15/23
..................
13,475
14,152,571
Leviathan
Bond
Ltd.,
5.75%,
06/30/23
(b)
....
1,855
1,910,648
Marathon
Petroleum
Corp.,
4.50%,
05/01/23
.
9,540
10,295,625
MEG
Energy
Corp.,
6.50%,
01/15/25
(b)
.....
1,338
1,312,471
MPLX
LP:
6.25%,
10/15/22
..................
2,658
2,660,887
3.50%,
12/01/22
..................
4,885
5,119,836
1.75%,
03/01/26
..................
5,395
5,370,694
New
Fortress
Energy,
Inc.,
6.75%,
09/15/25
(b)
.
2,447
2,558,339
Newfield
Exploration
Co.,
5.63%,
07/01/24
..
9,278
9,000,131
NuStar
Logistics
LP,
5.75%,
10/01/25
......
296
305,709
Occidental
Petroleum
Corp.:
2.70%,
08/15/22
..................
1,381
1,290,365
2.90%,
08/15/24
..................
4,849
4,114,037
Ovintiv,
Inc.,
3.90%,
11/15/21
...........
4,850
4,848,426
Parsley
Energy
LLC
(b)
:
5.38%,
01/15/25
..................
3,220
3,211,950
5.25%,
08/15/25
..................
111
109,890
PBF
Holding
Co.
LLC,
9.25%,
05/15/25
(b)
...
2,842
2,913,107
PDC
Energy,
Inc.,
5.75%,
05/15/26
.......
235
218,209
Petrobras
Global
Finance
BV:
4.38%,
05/20/23
..................
760
797,050
5.30%,
01/27/25
..................
3,970
4,302,984
7.38%,
01/17/27
..................
510
602,106
QEP
Resources,
Inc.,
5.25%,
05/01/23
.....
725
527,438
Range
Resources
Corp.,
5.00%,
08/15/22
...
200
192,940
Rattler
Midstream
LP,
5.63%,
07/15/25
(b)
....
672
677,040
Sabine
Pass
Liquefaction
LLC,
5.75%,
05/15/24
5,967
6,757,495
Security
Par
(000)
Value
Oil,
Gas
&
Consumable
Fuels
(continued)
Sinopec
Group
Overseas
Development
2018
Ltd.
(b)
:
2.15%,
05/13/25
..................
USD
510
$
527,314
2.70%,
05/13/30
..................
410
431,476
SM
Energy
Co.,
10.00%,
01/15/25
(b)
......
553
525,350
Southwestern
Energy
Co.:
4.10%,
03/15/22
..................
179
176,762
6.45%,
01/23/25
(a)
.................
61
59,094
7.50%,
04/01/26
..................
456
445,740
Spectra
Energy
Partners
LP,
4.75%,
03/15/24
1,710
1,904,330
Sunoco
LP:
4.88%,
01/15/23
..................
42
42,210
6.00%,
04/15/27
..................
54
55,485
Tallgrass
Energy
Partners
LP,
7.50%,
10/01/25
(b)
.....................
366
367,482
Targa
Resources
Partners
LP:
4.25%,
11/15/23
..................
1,301
1,287,990
5.13%,
02/01/25
..................
623
621,442
5.88%,
04/15/26
..................
1,255
1,288,509
TerraForm
Power
Operating
LLC,
4.25%,
01/31/23
(b)
.....................
3,355
3,438,472
Total
Capital
International
SA,
0.25%,
07/12/23
EUR
4,400
5,213,697
TransCanada
PipeLines
Ltd.,
3.75%,
10/16/23
USD
1,580
1,711,364
Western
Midstream
Operating
LP,
3.95%,
06/01/25
......................
942
885,292
Williams
Cos.,
Inc.
(The):
4.00%,
11/15/21
..................
4,650
4,788,724
3.60%,
03/15/22
..................
7,040
7,278,139
3.70%,
01/15/23
..................
5,300
5,601,224
WPX
Energy,
Inc.:
8.25%,
08/01/23
..................
190
214,700
5.25%,
09/15/24
..................
654
681,658
5.75%,
06/01/26
..................
377
390,195
245,211,589
Pharmaceuticals
—
0.7%
Bausch
Health
Americas,
Inc.
(b)
:
9.25%,
04/01/26
..................
442
486,200
8.50%,
01/31/27
..................
5,207
5,721,191
Bausch
Health
Cos.,
Inc.
(b)
:
6.13%,
04/15/25
..................
2,896
2,964,780
5.50%,
11/01/25
..................
387
397,159
9.00%,
12/15/25
..................
4,662
5,071,323
Bayer
Capital
Corp.
BV,
1.50%,
06/26/26
...
EUR
2,600
3,224,249
Catalent
Pharma
Solutions,
Inc.
(b)
:
4.88%,
01/15/26
..................
USD
947
965,940
5.00%,
07/15/27
..................
248
257,920
Merck
Financial
Services
GmbH,
0.01%,
12/15/23
......................
EUR
4,500
5,285,617
Par
Pharmaceutical,
Inc.,
7.50%,
04/01/27
(b)
.
USD
4,195
4,395,018
Shire
Acquisitions
Investments
Ireland
DAC,
2.88%,
09/23/23
.................
4,600
4,875,769
Takeda
Pharmaceutical
Co.
Ltd.,
4.40%,
11/26/23
......................
8,109
9,004,049
Upjohn
Finance
BV,
0.82%,
06/23/22
......
EUR
5,090
6,030,894
48,680,109
Professional
Services
—
0.2%
(b)
Dun
&
Bradstreet
Corp.
(The),
6.88%,
08/15/26
USD
4,709
5,057,701
Jaguar
Holding
Co.
II/PPD
Development
LP,
4.63%,
06/15/25
.................
5,611
5,779,330
10,837,031
Real
Estate
Management
&
Development
—
0.2%
Howard
Hughes
Corp.
(The),
5.38%,
03/15/25
(b)
3,968
4,031,885
Unique
Pub
Finance
Co.
plc
(The),
Series
M,
7.40%,
03/28/24
(a)
................
GBP
4,920
6,602,436
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
89
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Real
Estate
Management
&
Development
(continued)
Vonovia
Finance
BV:
0.13%,
04/06/23
..................
EUR
4,100
$
4,820,851
1.63%,
04/07/24
..................
1,800
2,217,501
17,672,673
Road
&
Rail
—
0.7%
Penske
Truck
Leasing
Co.
LP
(b)
:
3.30%,
04/01/21
..................
USD
7,930
8,023,162
3.38%,
02/01/22
..................
14,259
14,723,488
4.25%,
01/17/23
..................
3,235
3,481,476
2.70%,
03/14/23
..................
11,114
11,569,675
2.70%,
11/01/24
..................
3,595
3,814,183
Rumo
Luxembourg
SARL,
5.88%,
01/18/25
(b)
.
850
890,109
Ryder
System,
Inc.,
3.75%,
06/09/23
......
4,735
5,089,694
Uber
Technologies,
Inc.
(b)
:
7.50%,
11/01/23
..................
1,131
1,178,163
7.50%,
05/15/25
..................
1,762
1,877,569
50,647,519
Semiconductors
&
Semiconductor
Equipment
—
1.3%
Broadcom
Corp.,
3.63%,
01/15/24
.......
10,800
11,615,841
Broadcom,
Inc.:
3.13%,
04/15/21
..................
8,380
8,473,018
3.63%,
10/15/24
..................
4,400
4,797,649
4.70%,
04/15/25
..................
25,555
29,038,467
Entegris,
Inc.,
4.63%,
02/10/26
(b)
........
753
769,943
Microchip
Technology,
Inc.,
4.25%,
09/01/25
(b)
5,063
5,253,160
NXP
BV
(b)
:
3.88%,
09/01/22
..................
24,804
26,215,776
2.70%,
05/01/25
..................
650
688,586
3.88%,
06/18/26
..................
6,000
6,721,778
Qorvo,
Inc.,
5.50%,
07/15/26
...........
2,961
3,140,318
96,714,536
Software
—
0.5%
Amadeus
Capital
Markets
SA,
1.63%,
11/17/21
EUR
3,100
3,673,398
Boxer
Parent
Co.,
Inc.,
7.13%,
10/02/25
(b)
...
USD
6,678
7,132,505
BY
Crown
Parent
LLC,
4.25%,
01/31/26
(b)
...
2,015
2,051,522
CA,
Inc.,
3.60%,
08/15/22
.............
3,655
3,737,654
Camelot
Finance
SA,
4.50%,
11/01/26
(b)
....
3,223
3,287,460
CDK
Global,
Inc.,
4.88%,
06/01/27
.......
3,412
3,591,130
Change
Healthcare
Holdings
LLC,
5.75%,
03/01/25
(b)
.....................
2,938
2,980,013
Dassault
Systemes
SE,
0.00%,
09/16/22
...
EUR
4,600
5,404,165
Nuance
Communications,
Inc.,
5.63%,
12/15/26
USD
2,665
2,811,575
PTC,
Inc.,
3.63%,
02/15/25
(b)
...........
2,225
2,258,375
Veritas
US,
Inc.
(b)
:
7.50%,
02/01/23
..................
847
845,060
7.50%,
09/01/25
..................
2,295
2,366,719
40,139,576
Specialty
Retail
—
0.1%
L
Brands,
Inc.,
6.88%,
07/01/25
(b)
........
936
1,010,880
Michaels
Stores,
Inc.,
4.75%,
10/01/27
(b)
....
417
413,351
Penske
Automotive
Group,
Inc.,
3.50%,
09/01/25
......................
599
596,559
PetSmart,
Inc.,
5.88%,
06/01/25
(b)
........
4,497
4,603,129
Specialty
Building
Products
Holdings
LLC,
6.38%,
09/30/26
(b)
................
873
888,278
7,512,197
Technology
Hardware,
Storage
&
Peripherals
—
0.4%
(b)
Dell
International
LLC:
4.42%,
06/15/21
..................
3,181
3,256,180
5.45%,
06/15/23
..................
24,275
26,613,304
Diebold
Nixdorf,
Inc.,
9.38%,
07/15/25
.....
251
264,805
NCR
Corp.,
8.13%,
04/15/25
...........
677
748,254
30,882,543
Security
Par
(000)
Value
Textiles,
Apparel
&
Luxury
Goods
—
0.2%
LVMH
Moet
Hennessy
Louis
Vuitton
SE:
0.38%,
05/26/22
..................
EUR
500
$
590,691
0.00%,
02/11/24
..................
4,000
4,700,324
0.00%,
02/11/26
..................
4,700
5,503,748
William
Carter
Co.
(The),
5.63%,
03/15/27
(b)
..
USD
615
641,906
11,436,669
Thrifts
&
Mortgage
Finance
—
0.0%
(b)
Genworth
Mortgage
Holdings,
Inc.,
6.50%,
08/15/25
......................
907
947,543
Ladder
Capital
Finance
Holdings
LLLP,
4.25%,
02/01/27
......................
788
681,620
1,629,163
Tobacco
—
1.0%
Altria
Group,
Inc.,
3.80%,
02/14/24
.......
14,604
15,962,576
BAT
Capital
Corp.:
3.22%,
08/15/24
..................
23,990
25,667,303
2.79%,
09/06/24
..................
29,510
31,163,078
BAT
International
Finance
plc:
3.25%,
06/07/22
(b)
.................
545
568,008
0.88%,
10/13/23
..................
EUR
2,124
2,535,273
Philip
Morris
International,
Inc.,
0.13%,
08/03/26
......................
730
845,372
76,741,610
Trading
Companies
&
Distributors
—
0.6%
Air
Lease
Corp.:
2.50%,
03/01/21
..................
USD
20,000
20,120,536
2.63%,
07/01/22
..................
8,375
8,486,138
3.88%,
07/03/23
..................
4,500
4,689,358
Fortress
Transportation
and
Infrastructure
Investors
LLC,
9.75%,
08/01/27
(b)
......
89
95,286
HD
Supply,
Inc.,
5.38%,
10/15/26
(b)
.......
5,695
5,957,198
United
Rentals
North
America,
Inc.,
4.63%,
10/15/25
......................
281
287,322
WESCO
Distribution,
Inc.,
7.13%,
06/15/25
(b)
.
7,080
7,712,244
47,348,082
Transportation
Infrastructure
—
0.0%
Autoroutes
du
Sud
de
la
France
SA,
2.95%,
01/17/24
......................
EUR
2,500
3,198,192
Wireless
Telecommunication
Services
—
0.6%
Connect
Finco
SARL,
6.75%,
10/01/26
(b)
....
USD
6,436
6,456,273
Hughes
Satellite
Systems
Corp.,
5.25%,
08/01/26
......................
2,309
2,454,836
Millicom
International
Cellular
SA,
5.13%,
01/15/28
(b)
.....................
1,640
1,693,812
Sprint
Corp.:
7.88%,
09/15/23
..................
3,668
4,213,615
7.13%,
06/15/24
..................
892
1,026,344
7.63%,
02/15/25
..................
1,082
1,265,940
7.63%,
03/01/26
..................
2,744
3,315,809
Sprint
Spectrum
Co.
LLC
(b)
:
3.36%,
09/20/21
(a)
.................
786
795,056
4.74%,
03/20/25
..................
8,110
8,768,938
T-Mobile
USA,
Inc.:
3.50%,
04/15/25
(b)
.................
7,515
8,246,210
4.50%,
02/01/26
..................
286
294,694
VEON
Holdings
BV,
4.00%,
04/09/25
(b)
.....
1,995
2,064,825
40,596,352
Total
Corporate
Bonds
—
38.0%
(Cost:
$2,766,817,567)
............................
2,834,424,044
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
90
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Floating
Rate
Loan
Interests
—
0.0%
Chemicals
—
0.0%
Illuminate
Buyer
LLC,
Term
Loan,
(LIBOR
USD
3
Month
+
4.00%),
4.31%, 06/30/27
(h)
....
USD
37
$
36,653
Total
Floating
Rate
Loan
Interests
—
0.0%
(Cost:
$36,075)
.................................
36,653
Foreign
Agency
Obligations
—
4.3%
Bahrain
—
0.0%
CBB
International
Sukuk
Co.
7
SPC,
6.88%,
10/05/25
.......................
587
653,038
CBB
International
Sukuk
Programme
Co.
SPC,
6.25%,
11/14/24
(b)
.................
202
216,392
869,430
Brazil
—
0.0%
Centrais
Eletricas
Brasileiras
SA,
3.63%,
02/04/25
(b)
......................
1,000
996,250
Canada
—
4.1%
Canada
Housing
Trust
No.
1,
2.40%,
12/15/22
(b)
CAD
384,000
301,464,008
Chile
—
0.0%
(b)
Empresa
de
los
Ferrocarriles
del
Estado,
3.07%,
08/18/50
..................
USD
575
560,625
Empresa
de
Transporte
de
Pasajeros
Metro
SA,
3.65%,
05/07/30
..................
655
722,956
1,283,581
Colombia
—
0.0%
Ecopetrol
SA,
5.38%,
06/26/26
...........
2,070
2,278,617
Indonesia
—
0.0%
Pertamina
Persero
PT,
3.10%,
08/27/30
....
2,097
2,175,638
Mexico
—
0.1%
Petroleos
Mexicanos
:
6.88%,
08/04/26
..................
1,720
1,655,328
6.84%,
01/23/30
(b)
.................
1,570
1,401,225
5.95%,
01/28/31
(b)
.................
5,370
4,482,004
7,538,557
Panama
—
0.0%
Banco
Latinoamericano
de
Comercio
Exterior
SA,
2.38%,
09/14/25
(b)
..............
1,110
1,121,100
Peru
—
0.0%
Corp.
Financiera
de
Desarrollo
SA,
2.40%,
09/28/27
(b)
......................
690
693,229
Saudi
Arabia
—
0.1%
Saudi
Arabian
Oil
Co.
(b)
:
2.88%,
04/16/24
..................
3,245
3,402,382
3.50%,
04/16/29
..................
920
1,009,413
4,411,795
Total
Foreign
Agency
Obligations
—
4.3%
(Cost:
$328,525,510)
..............................
322,832,205
Foreign
Government
Obligations
—
1.5%
Bahrain
—
0.0%
Kingdom
of
Bahrain,
7.00%,
01/26/26
......
1,403
1,554,699
Brazil
—
0.1%
Federative
Republic
of
Brazil:
4.88%,
01/22/21
..................
2,440
2,472,788
4.63%,
01/13/28
..................
1,940
2,100,050
4,572,838
Security
Par
(000)
Value
Chile
—
0.1%
Corp.
Nacional
del
Cobre
de
Chile,
3.75%,
01/15/31
(b)
......................
USD
505
$
561,813
Republic
of
Chile:
2.25%,
10/30/22
..................
950
980,875
3.24%,
02/06/28
..................
4,150
4,611,687
2.45%,
01/31/31
..................
3,710
3,904,775
10,059,150
Colombia
—
0.2%
Republic
of
Colombia:
4.00%,
02/26/24
..................
384
410,040
8.13%,
05/21/24
..................
3,010
3,640,595
4.50%,
01/28/26
..................
3,760
4,155,975
3.88%,
04/25/27
..................
2,510
2,710,800
4.50%,
03/15/29
..................
869
973,552
4.13%,
05/15/51
..................
510
531,675
12,422,637
Dominican
Republic
—
0.1%
Dominican
Republic
Government
Bond:
5.50%,
01/27/25
..................
3,599
3,823,938
6.88%,
01/29/26
..................
1,010
1,124,256
4.88%,
09/23/32
(b)
.................
1,210
1,197,900
6,146,094
Egypt
—
0.1%
Arab
Republic
of
Egypt:
6.13%,
01/31/22
..................
500
511,406
5.58%,
02/21/23
(b)
.................
1,160
1,190,087
5.75%,
05/29/24
(b)
.................
935
956,038
4.75%,
04/11/25
(b)
.................
EUR
290
330,448
5.88%,
06/11/25
..................
USD
989
1,014,343
5.25%,
10/06/25
..................
1,595
1,591,013
7.60%,
03/01/29
..................
1,168
1,194,645
6.38%,
04/11/31
(b)
.................
EUR
1,250
1,363,431
8,151,411
Indonesia
—
0.1%
Republic
of
Indonesia:
3.75%,
04/25/22
..................
USD
1,290
1,343,213
4.75%,
01/08/26
..................
2,010
2,335,369
0.90%,
02/14/27
..................
EUR
1,850
2,117,518
3.50%,
01/11/28
..................
USD
1,600
1,749,000
4.10%,
04/24/28
..................
1,190
1,352,137
4.75%,
02/11/29
..................
450
532,687
9,429,924
Israel
—
0.0%
State
of
Israel
Government
Bond,
2.75%,
07/03/30
.......................
990
1,091,475
Mexico
—
0.1%
United
Mexican
States:
4.13%,
01/21/26
..................
1,460
1,622,060
4.50%,
04/22/29
..................
1,997
2,238,512
3,860,572
Panama
—
0.1%
Republic
of
Panama:
4.00%,
09/22/24
..................
2,840
3,109,800
3.88%,
03/17/28
..................
2,560
2,903,200
6,013,000
Paraguay
—
0.1%
Republic
of
Paraguay,
4.95%,
04/28/31
(b)
....
4,368
5,045,040
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
91
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Peru
—
0.1%
Republic
of
Peru,
2.39%,
01/23/26
........
USD
5,229
$
5,490,450
Philippines
—
0.1%
Republic
of
Philippines,
3.75%,
01/14/29
....
4,460
5,205,656
Poland
—
0.0%
Republic
of
Poland,
3.25%,
04/06/26
.......
862
972,713
Qatar
—
0.1%
State
of
Qatar:
3.40%,
04/16/25
(b)
.................
1,290
1,415,372
4.50%,
04/23/28
..................
3,055
3,646,906
4.00%,
03/14/29
(b)
.................
3,740
4,371,125
9,433,403
Romania
—
0.0%
Romania
Government
Bond,
3.00%,
02/14/31
(b)
1,940
1,990,925
Russia
—
0.1%
Russian
Federation:
4.75%,
05/27/26
..................
2,600
2,977,000
4.25%,
06/23/27
..................
2,600
2,925,000
5,902,000
Saudi
Arabia
—
0.1%
Kingdom
of
Saudi
Arabia:
4.00%,
04/17/25
..................
2,050
2,272,938
3.25%,
10/26/26
..................
854
928,298
3.63%,
03/04/28
..................
600
664,313
4.38%,
04/16/29
(b)
.................
2,180
2,554,687
6,420,236
Ukraine
—
0.0%
Ukraine
Government
Bond:
8.99%,
02/01/24
..................
930
970,455
7.75%,
09/01/24
..................
953
956,574
7.25%,
03/15/33
(b)
.................
715
656,012
2,583,041
Uruguay
—
0.0%
Oriental
Republic
of
Uruguay,
4.38%,
10/27/27
1,684
1,945,014
Total
Foreign
Government
Obligations
—
1.5%
(Cost:
$105,545,267)
..............................
108,290,278
Shares
Investment
Companies
—
2.2%
iShares
Short
Maturity
Bond
ETF
*
.........
3,180,000
159,349,800
Total
Investment
Companies
—
2.2%
(Cost:
$159,438,279)
..............................
159,349,800
Par
(000)
Municipal
Bonds
—
0.2%
South
Carolina
-
0.2%
South
Carolina
Public
Service
Authority:
Series
2016D,
RB,
2.39%, 12/01/23
.....
8,975
9,430,212
Series
2012E,
RB,
3.72%, 12/01/23
.....
6,833
7,460,064
16,890,276
Total
Municipal
Bonds
—
0.2%
(Cost:
$15,416,484)
...............................
16,890,276
Security
Par
(000)
Value
Non-Agency
Mortgage-Backed
Securities
—
13.9%
Collateralized
Mortgage
Obligations
—
2.3%
Banc
of
America
Mortgage
Trust,
Series
2003-J,
Class
2A1,
3.96%,
11/25/33
(e)
.........
USD
241
$
228,706
Bear
Stearns
ARM
Trust,
Series
2004-5,
Class
2A,
3.43%,
07/25/34
(e)
..............
364
365,249
BlackRock
Capital
Finance
LP,
Series
1997-R2,
Class
AP,
1.68%,
12/25/35
(b)(e)*
.........
19
17,535
Chase
Home
Lending
Mortgage
Trust
(b)(e)
:
Series
2019-ATR2,
Class
A11,
1.05%,
07/25/49
.....................
2,818
2,812,718
Series
2019-ATR2,
Class
A3,
3.50%,
07/25/49
.....................
6,031
6,210,107
CHL
Mortgage
Pass-Through
Trust:
Series
2004-29,
Class
1A1,
0.69%,
02/25/35
(e)
....................
296
278,199
Series
2005-17,
Class
1A6,
5.50%,
09/25/35
549
545,853
Series
2005-HYB8,
Class
2A1,
3.29%,
12/20/35
(e)
....................
794
726,174
CMF
plc
(e)
:
Series
2020-1,
Class
B,
1.06%,
01/16/57
..
GBP
220
272,194
Series
2020-1,
Class
C,
1.31%,
01/16/57
..
105
127,880
CSMC
Trust,
Series
2019-RP10,
Class
A1,
3.12%,
12/26/59
(b)(e)
................
USD
3,895
3,923,331
Finsbury
Square
plc,
Series
2020-1A,
Class
C,
1.41%,
03/16/70
(b)(e)
................
GBP
225
284,499
Gosforth
Funding
plc,
Series
2018-1A,
Class
A1,
0.70%,
08/25/60
(b)(e)
.............
USD
6,559
6,549,290
GS
Mortgage-Backed
Securities
Corp.
Trust,
Series
2020-PJ4,
Class
A2,
3.00%,
01/25/51
(b)(e)
.....................
11,021
11,357,289
JPMorgan
Mortgage
Trust
(b)(e)
:
Series
2016-2,
Class
A1,
2.66%,
06/25/46
.
8,971
9,274,099
Series
2017-1,
Class
A4,
3.50%,
01/25/47
.
5,230
5,260,815
Series
2017-3,
Class
1A6,
3.00%,
08/25/47
3,146
3,156,214
Series
2017-6,
Class
A6,
3.00%,
12/25/48
.
2,592
2,601,688
Series
2020-7,
Class
A3,
3.00%,
01/25/51
.
8,936
9,206,738
Series
2020-LTV1,
Class
A11,
1.17%,
06/25/50
.....................
9,551
9,539,879
Lanark
Master
Issuer
plc,
Series
2019-1A,
Class
1A1,
1.03%,
12/22/69
(b)(e)
........
6,706
6,714,758
Lanebrook
Mortgage
Transaction
plc,
Series
2020-1,
Class
C,
2.31%,
06/12/57
(e)
.....
GBP
370
477,429
MortgageIT
Trust,
Series
2004-1,
Class
A1,
0.93%,
11/25/34
(e)
.................
USD
765
777,733
National
RMBS
Trust,
Series
2012-2,
Class
A1,
1.19%,
06/20/44
(e)
.................
AUD
749
537,212
New
Residential
Mortgage
Loan
Trust
(b)(e)
:
Series
2016-3A,
Class
A1B,
3.25%,
09/25/56
.....................
USD
2,241
2,382,954
Series
2018-1A,
Class
A1A,
4.00%,
12/25/57
.....................
7,666
8,275,984
Series
2020-1A,
Class
A1B,
3.50%,
10/25/59
.....................
18,504
19,788,579
Permanent
Master
Issuer
plc,
Series
2018-1A,
Class
1A1,
0.65%,
07/15/58
(b)(e)
........
4,160
4,163,491
Residential
Mortgage
Securities
32
plc,
Series
32X,
Class
C,
2.26%,
06/20/70
(e)
.......
GBP
525
679,700
Seasoned
Credit
Risk
Transfer
Trust:
Series
2018-2,
Class
MA,
3.50%,
11/25/57
USD
8,630
9,289,994
Series
2019-4,
Class
MA,
3.00%,
02/25/59
20,359
21,696,568
Sequoia
Mortgage
Trust
(b)(e)
:
Series
2017-CH1,
Class
A2,
3.50%,
08/25/47
.....................
5,035
5,157,845
Series
2017-CH2,
Class
A10,
4.00%,
12/25/47
.....................
1,688
1,700,049
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
92
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Collateralized
Mortgage
Obligations
(continued)
Structured
Adjustable
Rate
Mortgage
Loan
Trust,
Series
2004-13,
Class
A2,
0.45%,
09/25/34
(e)
......................
USD
744
$
696,670
TORRENS
Trust,
Series
2013-1,
Class
A,
1.04%,
04/12/44
(e)
.................
AUD
4,356
3,115,755
Tower
Bridge
Funding
plc
(e)
:
Series
2020-1,
Class
C,
2.59%,
09/20/63
..
GBP
145
187,790
Series
2020-1,
Class
D,
3.52%,
09/20/63
..
120
155,836
Twin
Bridges
plc
(e)
:
Series
2020-1,
Class
C,
2.32%,
12/14/54
..
395
510,001
Series
2020-1,
Class
D,
3.06%,
12/14/54
..
225
290,025
Walsh
Acceptance,
Series
1997-2,
Class
A,
2.19%,
03/01/27
(b)(e)
................
USD
3
1,684
Wells
Fargo
Mortgage
Backed
Securities
Trust
(b)(e)
:
Series
2019-4,
Class
A2,
3.00%,
09/25/49
.
4,254
4,418,285
Series
2020-RR1,
Class
A1,
3.00%,
05/25/50
(d)
....................
7,278
7,498,178
171,254,977
Commercial
Mortgage-Backed
Securities
—
11.6%
280
Park
Avenue
Mortgage
Trust,
Series
2017-
280P,
Class
D,
1.69%,
09/15/34
(b)(e)
......
6,910
6,753,944
AOA
Mortgage
Trust,
Series
2015-1177,
Class
D,
3.11%,
12/13/29
(b)(e)
..............
4,855
4,808,254
BAMLL
Commercial
Mortgage
Securities
Trust
(b)
(e)
:
Series
2017-SCH,
Class
AF,
1.15%,
11/15/33
.....................
3,270
3,092,385
Series
2018-DSNY,
Class
A,
1.00%,
09/15/34
.....................
12,495
12,138,280
BAMLL
Trust,
Series
2011-FSHN,
Class
D,
5.62%,
07/11/33
(b)
.................
11,600
11,392,638
BANK:
Series
2018-BN14,
Class
A2,
4.13%,
09/15/60
.....................
6,000
6,501,975
Series
2019-BN16,
Class
A2,
3.93%,
02/15/52
.....................
12,200
13,127,444
Series
2019-BN18,
Class
A2,
3.47%,
05/15/62
.....................
15,479
16,732,316
BBCMS
Trust,
Series
2013-TYSN,
Class
E,
3.71%,
09/05/32
(b)
.................
3,765
3,648,370
Bear
Stearns
Commercial
Mortgage
Securities
Trust
(e)
:
Series
2005-PW10,
Class
AJ,
5.78%,
12/11/40
.....................
—
(
i
)
1
Series
2005-PW10,
Class
B,
5.80%,
12/11/40
.....................
946
947,041
Benchmark
Mortgage
Trust,
Series
2019-B9,
Class
A5,
4.02%,
03/15/52
...........
10,000
11,868,649
BX
Commercial
Mortgage
Trust
(b)(e)
:
Series
2018-IND,
Class
A,
0.90%,
11/15/35
2,367
2,366,678
Series
2019-XL,
Class
A,
1.07%,
10/15/36
.
25,124
25,116,571
Series
2019-XL,
Class
D,
1.60%,
10/15/36
.
17,590
17,481,095
Series
2020-BXLP,
Class
F,
2.15%,
12/15/36
5,048
4,966,346
CFCRE
Commercial
Mortgage
Trust:
Series
2016-C4,
Class
ASB,
3.09%,
05/10/58
.....................
4,741
5,035,432
Series
2018-TAN,
Class
A,
4.24%,
02/15/33
(b)
....................
15,000
15,576,307
Series
2018-TAN,
Class
B,
4.69%,
02/15/33
(b)
....................
12,905
13,055,205
CGDBB
Commercial
Mortgage
Trust,
Series
2017-BIOC,
Class
A,
0.94%,
07/15/32
(b)(e)
.
5,426
5,425,579
Citigroup
Commercial
Mortgage
Trust:
Series
2012-GC8,
Class
A4,
3.02%,
09/10/45
.....................
14,342
14,689,900
Security
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2013-375P,
Class
A,
3.25%,
05/10/35
(b)
....................
USD
9,460
$
9,856,689
Series
2013-GC11,
Class
A3,
2.82%,
04/10/46
.....................
26,424
27,423,716
Series
2015-GC31,
Class
A4,
3.76%,
06/10/48
.....................
9,000
10,043,687
Series
2016-P3,
Class
A2,
2.74%,
04/15/49
7,213
7,235,200
Series
2016-P4,
Class
A4,
2.90%,
07/10/49
14,575
15,812,769
Commercial
Mortgage
Trust:
Series
2012-CR1,
Class
A3,
3.39%,
05/15/45
.....................
9,571
9,771,506
Series
2012-CR3,
Class
A3,
2.82%,
10/15/45
.....................
7,746
7,893,572
Series
2013-CR10,
Class
ASB,
3.80%,
08/10/46
.....................
1,979
2,064,169
Series
2013-CR12,
Class
A4,
4.05%,
10/10/46
.....................
15,633
17,007,461
Series
2013-CR13,
Class
A4,
4.19%,
11/10/46
(e)
....................
4,515
4,936,744
Series
2014-CR21,
Class
A3,
3.53%,
12/10/47
.....................
15,252
16,507,352
Series
2014-UBS3,
Class
ASB,
3.37%,
06/10/47
.....................
14,811
15,407,805
Series
2014-UBS5,
Class
ASB,
3.55%,
09/10/47
.....................
5,768
6,023,720
Series
2014-UBS6,
Class
ASB,
3.39%,
12/10/47
.....................
1,535
1,614,416
Series
2015-CR22,
Class
A3,
3.21%,
03/10/48
.....................
28,180
28,834,354
Series
2015-CR23,
Class
A2,
2.85%,
05/10/48
.....................
3,951
3,950,036
Series
2015-CR24,
Class
ASB,
3.45%,
08/10/48
.....................
7,236
7,640,140
Series
2015-LC21,
Class
ASB,
3.42%,
07/10/48
.....................
9,129
9,636,352
Credit
Suisse
Mortgage
Capital
Certificates,
Series
2020-NET,
Class
A,
2.26%,
08/15/37
(b)
......................
7,128
7,350,650
CSAIL
Commercial
Mortgage
Trust:
Series
2015-C1,
Class
A4,
3.51%,
04/15/50
11,358
12,427,920
Series
2015-C1,
Class
ASB,
3.35%,
04/15/50
.....................
12,050
12,626,234
Series
2015-C2,
Class
A4,
3.50%,
06/15/57
2,458
2,708,495
GS
Mortgage
Securities
Corp.
II,
Series
2013-
GC10,
Class
A4,
2.68%,
02/10/46
......
3,644
3,752,083
GS
Mortgage
Securities
Corp.
Trust
(b)
:
Series
2012-ALOH,
Class
A,
3.55%,
04/10/34
.....................
17,000
17,137,748
Series
2019-SOHO,
Class
A,
1.05%,
06/15/36
(e)
....................
12,154
12,063,759
Series
2019-SOHO,
Class
C,
1.45%,
06/15/36
(e)
....................
8,815
8,470,459
GS
Mortgage
Securities
Trust:
Series
2011-GC5,
Class
AS,
5.21%,
08/10/44
(b)(e)
...................
8,891
9,092,783
Series
2012-GC6,
Class
A3,
3.48%,
01/10/45
.....................
11,008
11,231,939
Series
2013-GC13,
Class
AAB,
3.72%,
07/10/46
(e)
....................
4,337
4,490,767
Series
2013-GC14,
Class
A3,
3.53%,
08/10/46
.....................
533
532,935
Series
2014-GC24,
Class
AAB,
3.65%,
09/10/47
.....................
7,604
7,962,681
Series
2015-GS1,
Class
A3,
3.73%,
11/10/48
.....................
5,900
6,579,836
Series
2019-GC38,
Class
A2,
3.87%,
02/10/52
.....................
8,134
8,770,758
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
93
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Hawaii
Hotel
Trust,
Series
2019-MAUI,
Class
A,
1.30%,
05/15/38
(b)(e)
................
USD
9,675
$
9,362,038
JPMBB
Commercial
Mortgage
Securities
Trust,
Series
2014-C23,
Class
ASB,
3.66%,
09/15/47
.......................
5,409
5,696,628
JPMCC
Commercial
Mortgage
Securities
Trust,
Series
2017-JP6,
Class
A3,
3.11%,
07/15/50
17,260
18,247,747
JPMorgan
Chase
Commercial
Mortgage
Securities
Trust
(b)
:
Series
2012-HSBC,
Class
D,
4.67%,
07/05/32
(e)
....................
6,490
6,685,299
Series
2018-WPT,
Class
AFX,
4.25%,
07/05/33
.....................
7,070
7,468,583
Series
2019-BKWD,
Class
A,
1.15%,
09/15/29
(e)
....................
1,864
1,819,114
KNDL
Mortgage
Trust,
Series
2019-KNSQ,
Class
D,
1.50%,
05/15/36
(b)(e)
..........
2,972
2,959,195
Morgan
Stanley
Bank
of
America
Merrill
Lynch
Trust:
Series
2013-C13,
Class
A4,
4.04%,
11/15/46
11,900
12,882,553
Series
2013-C9,
Class
AAB,
2.66%,
05/15/46
.....................
3,087
3,151,366
Series
2014-C15,
Class
A4,
4.05%,
04/15/47
9,800
10,731,885
Series
2014-C18,
Class
ASB,
3.62%,
10/15/47
.....................
8,237
8,685,937
Series
2014-C19,
Class
ASB,
3.33%,
12/15/47
.....................
6,796
7,114,753
Series
2016-C30,
Class
ASB,
2.73%,
09/15/49
.....................
14,735
15,517,106
Morgan
Stanley
Capital
I
Trust:
Series
2007-T27,
Class
AJ,
6.21%,
06/11/42
(e)
....................
4,378
4,385,689
Series
2012-C4,
Class
A4,
3.24%,
03/15/45
12,941
13,169,451
Series
2014-CPT,
Class
A,
3.35%,
07/13/29
(b)
....................
11,100
11,250,173
Series
2014-MP,
Class
A,
3.47%,
08/11/33
(b)
4,215
4,284,776
Series
2018-BOP,
Class
A,
1.00%,
08/15/33
(b)(e)
...................
3,671
3,588,763
Series
2018-H4,
Class
A4,
4.31%,
12/15/51
4,995
5,962,129
Series
2019-NUGS,
Class
D,
3.30%,
12/15/36
(b)(e)
...................
8,000
7,505,626
Series
2019-NUGS,
Class
E,
3.74%,
12/15/36
(b)(e)
...................
1,000
912,821
Natixis
Commercial
Mortgage
Securities
Trust,
Series
2018-FL1,
Class
A,
1.11%,
06/15/35
(b)
(e)
............................
6,077
5,859,382
PFP
Ltd.,
Series
2019-5,
Class
A,
1.12%,
04/14/36
(b)(e)
.....................
5,341
5,270,826
UBS
Commercial
Mortgage
Trust:
Series
2012-C1,
Class
A3,
3.40%,
05/10/45
4,130
4,233,508
Series
2019-C18,
Class
A4,
3.04%,
12/15/52
7,873
8,773,101
UBS-Barclays
Commercial
Mortgage
Trust:
Series
2013-C5,
Class
AS,
3.35%,
03/10/46
(b)
....................
9,713
10,099,057
Series
2013-C6,
Class
ASB,
2.79%,
04/10/46
.....................
3,757
3,831,299
Velocity
Commercial
Capital
Loan
Trust
(b)
:
Series
2018-1,
Class
A,
3.59%,
04/25/48
..
1,130
1,135,566
Series
2019-3,
Class
A,
3.03%,
10/25/49
(e)
.
5,405
5,530,780
VNDO
Mortgage
Trust,
Series
2012-6AVE,
Class
A,
3.00%,
11/15/30
(b)
...........
17,397
17,950,251
Wells
Fargo
Commercial
Mortgage
Trust:
Series
2014-LC16,
Class
ASB,
3.48%,
08/15/50
.....................
8,687
9,091,314
Series
2015-C28,
Class
ASB,
3.31%,
05/15/48
.....................
4,862
5,131,143
Security
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
(continued)
Series
2015-LC22,
Class
ASB,
3.57%,
09/15/58
.....................
USD
8,691
$
9,193,760
Series
2017-C39,
Class
A5,
3.42%,
09/15/50
25,064
28,330,243
WFRBS
Commercial
Mortgage
Trust:
Series
2011-C5,
Class
A4,
3.67%,
11/15/44
27,886
28,365,217
Series
2012-C10,
Class
ASB,
2.45%,
12/15/45
.....................
9,699
9,866,456
Series
2012-C6,
Class
A4,
3.44%,
04/15/45
1,880
1,907,310
Series
2014-C21,
Class
ASB,
3.39%,
08/15/47
.....................
11,035
11,460,723
Series
2014-C21,
Class
ASBF,
0.71%,
08/15/47
(b)(e)
...................
2,854
2,814,761
Series
2014-C24,
Class
ASB,
3.32%,
11/15/47
.....................
8,535
8,929,952
860,739,426
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.0%
Commercial
Mortgage
Trust,
Series
2015-
CR23,
Class
XA,
1.04%,
05/10/48
(e)
.....
33,928
1,062,513
Total
Non-Agency
Mortgage-Backed
Securities
—
13.9%
(Cost:
$1,018,117,563)
............................
1,033,056,916
U.S.
Government
Sponsored
Agency
Securities
—
9.9%
Agency
Obligations
—
2.2%
Federal
Home
Loan
Mortgage
Corp.,
0.38%, 09/23/25
..................
145,980
145,498,667
Federal
National
Mortgage
Association,
0.38%, 08/25/25
..................
17,908
17,851,580
163,350,247
Collateralized
Mortgage
Obligations
—
0.9%
Federal
Home
Loan
Mortgage
Corp.:
Series
1165,
Class
LD,
7.00%, 11/15/21
..
10
10,203
Series
3710,
Class
MG,
4.00%, 08/15/25
(a)
643
693,123
Series
3959,
Class
MA,
4.50%, 11/15/41
..
1,664
1,840,465
Series
3986,
Class
M,
4.50%, 09/15/41
...
1,963
2,090,343
Series
4459,
Class
BN,
3.00%, 08/15/43
..
7,134
7,674,610
Series
4569,
Class
JA,
3.00%, 03/15/42
..
10,130
10,489,688
Federal
Home
Loan
Mortgage
Corp.
STACR
REMIC
Trust
Variable
Rate
Notes,
Series
2020-DNA3,
Class
M1,
(LIBOR
USD
1
Month
+
1.50%),
1.65%, 06/25/50
(b)(c)
....
6,709
6,722,432
Federal
Home
Loan
Mortgage
Corp.
STACR
Trust
Variable
Rate
Notes,
Series
2019-
FTR2,
Class
M1,
(LIBOR
USD
1
Month
+
0.95%),
1.10%, 11/25/48
(b)(c)
..........
655
646,634
Federal
Home
Loan
Mortgage
Corp.
Structured
Agency
Credit
Risk
Debt
Notes
Variable
Rate
Notes,
Series
2017-DNA2,
Class
M1,
(LIBOR
USD
1
Month
+
1.20%),
1.35%, 10/25/29
(c)
.................
4,231
4,230,792
Federal
National
Mortgage
Association:
Series
2011-48,
Class
MG,
4.00%, 06/25/26
(a)
...............
1,223
1,315,688
Series
2011-84,
Class
MG,
4.00%, 09/25/26
(a)
...............
1,609
1,705,648
Series
2014-48,
Class
AB,
4.00%, 10/25/40
3,608
3,680,660
Federal
National
Mortgage
Association
Variable
Rate
Notes,
Series
1997-20,
Class
FB,
1.86%, 03/25/27
(e)
.................
57
56,960
Government
National
Mortgage
Association:
Series
2013-131,
Class
PA,
3.50%, 06/16/42
3,657
3,848,651
Series
2018-36,
Class
AM,
3.00%, 07/20/45
22,600
23,437,325
68,443,222
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
94
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
September
30,
2020
Security
Par
(000)
Value
Commercial
Mortgage-Backed
Securities
—
0.5%
Federal
Home
Loan
Mortgage
Corp.,
Series
KJ05,
Class
A2,
2.16%, 10/25/21
.......
USD
5,721
$
5,796,702
Federal
Home
Loan
Mortgage
Corp.
Multifamily
Structured
Pass-Through
Certificates,
Series
KIR2,
Class
A1,
2.75%, 03/25/27
.......
6,703
7,110,881
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes
(b)(e)
:
Series
2012-K18,
Class
B,
4.38%, 01/25/45
5,450
5,654,924
Series
2012-K20,
Class
B,
4.00%, 05/25/45
3,030
3,157,789
Series
2012-K21,
Class
B,
4.07%, 07/25/45
3,053
3,192,166
Series
2013-K25,
Class
B,
3.74%, 11/25/45
1,505
1,574,839
Series
2013-K26,
Class
B,
3.72%, 12/25/45
1,247
1,306,106
Series
2013-K27,
Class
B,
3.62%, 01/25/46
2,875
3,023,466
FREMF
Mortgage
Trust,
Series
2015-K720,
Class
B,
3.51%, 07/25/22
(b)(e)
..........
6,200
6,406,844
37,223,717
Interest
Only
Commercial
Mortgage-Backed
Securities
—
0.0%
(e)
Federal
Home
Loan
Mortgage
Corp.
Multifamily
Structured
Pass-Through
Certificates
Variable
Rate
Notes,
Series
K718,
Class
X1,
0.72%, 01/25/22
..................
11,358
57,750
Government
National
Mortgage
Association
Variable
Rate
Notes,
Series
2012-120,
0.71%, 02/16/53
..................
18,572
700,564
758,314
Mortgage-Backed
Securities
—
6.3%
Federal
Home
Loan
Mortgage
Corp.
(j)
:
4.00%, 02/01/34
-
03/01/34
...........
23,176
25,495,432
4.50%, 07/01/47
-
03/01/49
...........
89,604
101,109,428
Federal
Home
Loan
Mortgage
Corp.
Variable
Rate
Notes,
(LIBOR
USD
12
Month
+
1.63%),
2.98%, 10/01/45
(c)
...........
2,863
2,964,902
Federal
National
Mortgage
Association
Variable
Rate
Notes
(c)
:
(LIBOR
USD
12
Month
+
1.59%),
2.83%, 09/01/45
(j)
...............
6,514
6,791,515
(LIBOR
USD
12
Month
+
1.59%),
2.92%, 11/01/45
................
514
533,727
(LIBOR
USD
12
Month
+
1.59%),
3.13%, 06/01/45
................
7,501
7,842,610
(LIBOR
USD
12
Month
+
1.74%),
3.19%, 09/01/42
................
6,015
6,305,651
Uniform
Mortgage-Backed
Securities:
2.50%, 12/01/27
-
04/01/32
(j)
..........
42,003
44,226,963
3.00%, 12/01/26
-
04/01/33
...........
54,932
58,392,417
3.50%, 04/01/34
..................
3,820
4,210,858
4.00%, 04/01/26
-
06/01/34
(j)
..........
119,208
127,554,534
4.50%, 03/01/47
-
04/01/49
(j)
..........
72,165
81,136,476
5.00%, 04/01/21
..................
—
(
i
)
55
5.50%, 10/01/21
..................
36
36,154
6.50%, 04/01/21
..................
—
(
i
)
495
466,601,217
Total
U.S.
Government
Sponsored
Agency
Securities
—
9.9%
(Cost:
$713,302,701)
..............................
736,376,717
Security
Par
(000)
Value
U.S.
Treasury
Obligations
—
9.3%
U.S.
Treasury
Inflation
Linked
Notes,
0.13%, 04/15/22
..................
USD
93,329
$
94,984,173
U.S.
Treasury
Notes:
1.13%, 06/30/21
(j)
.................
200,000
201,500,000
0.13%, 05/31/22
-
09/15/23
...........
397,700
397,543,697
1.38%, 02/15/23
..................
1,400
1,440,851
Total
U.S.
Treasury
Obligations
—
9.3%
(Cost:
$695,374,906)
..............................
695,468,721
Total
Long-Term
Investments
—
94.3%
(Cost:
$6,914,941,007)
............................
7,027,536,454
Short-Term
Securities
—
8.6%
Commercial
Paper
—
1.0%
(k)
AstraZeneca
plc,
2.07%,
11/03/20
........
31,000
30,989,431
Boeing
Co.
(The),
2.19%,
11/18/20
........
45,000
44,932,257
Total
Commercial
Paper
—
1.0%
(Cost:
$75,812,745)
...............................
75,921,688
Foreign
Government
Obligations
—
4.0%
Japan
—
4.0%
Japan
Treasury
Bills
(k)
:
(0.15)%,
10/12/20
.................
JPY
17,000,000
161,196,427
(0.12)%,
02/25/21
.................
14,000,000
132,831,638
294,028,065
Total
Foreign
Government
Obligations
—
4.0%
(Cost:
$292,451,329)
..............................
294,028,065
Shares
Money
Market
Funds
—
3.6%
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class,
0.02%
(l)*
...................
270,721,972
270,721,972
Total
Money
Market
Funds
—
3.6%
(Cost:
$270,721,972)
..............................
270,721,972
Total
Short-Term
Securities
—
8.6%
(Cost:
$638,986,046)
..............................
640,671,725
Total
Options
Purchased
—
0.0%
(Cost:
$12,995,096)
...............................
13,030,361
Total
Investments
Before
Options
Written
—
102.9%
(Cost:
$7,566,922,149
)
............................
7,681,238,540
Total
Options
Written
—
(0.5)%
(Premium
Received
—
$38,160,801)
...................
(42,217,336)
Total
Investments
Net
of
Options
Written
—
102.4%
(Cost:
$7,528,761,348
)
............................
7,639,021,204
Liabilities
in
Excess
of
Other
Assets
—
(2.4)%
.............
(181,937,187)
Net
Assets
—
100.0%
...............................
$
7,457,084,017
(a)
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.
(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)
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.
(d)
Security
is
valued
using
significant
unobservable
inputs
and
is
classified
as
Level
3
in
the
fair
value
hierarchy.
(e)
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.
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
95
Schedule
of
Investments
(continued)
September
30,
2020
(f)
Issuer
filed
for
bankruptcy
and/or
is
in
default.
(g)
Non-income
producing
security.
(h)
Variable
rate
security.
Rate
shown
is
the
rate
in
effect
as
of
period
end.
(i)
Amount
is
less
than
500.
(j)
All
or
a
portion
of
the
security
has
been
pledged
as
collateral
in
connection
with
outstanding
reverse
repurchase
agreements.
(k)
Rates
are
discount
rates
or
a
range
of
discount
rates
as
of
period
end.
(l)
Annualized
7-day
yield
as
of
period
end.
*
Investments
in
issuers
considered
to
be
affiliate(s)
of
the
Fund
during
the
year
ended
September
30,
2020
for
purposes
of
Section
2(a)(3)
of
the
Investment
Company
Act
of
1940,
as
amended,
were
as
follows:
Affiliated
Issuer
Value
at
09/30/19
Purchases
at
Cost
Proceeds
from
Sale
Net
Realized
Gain
(Loss)
Change
in
Unrealized
Appreciation
(Depreciation)
Value
at
09/30/20
Par/Shares
Held
at
09/30/20
Income
Capital
Gain
Distributions
from
Underlying
Funds
BlackRock
Liquidity
Funds,
T-Fund,
Institutional
Class
(a)
..
$
47,697,236
$
223,024,736
$
—
$
—
$
—
$
270,721,972
270,721,972
$
953,572
$
33
BlackRock
Capital
Finance
LP,
Series
1997-R2,
Class
AP
...
16,809
—
—
—
726
17,535
18,554
1,213
—
iShares
iBoxx
$
High
Yield
Corporate
Bond
ETF
(b)
.....
—
49,505,814
(45,875,986)
(3,629,828)
—
—
—
652,164
—
iShares
Short
Maturity
Bond
ETF
160,081,199
—
—
—
(731,399)
159,349,800
3,180,000
3,250,129
—
$
(3,629,828)
$
(730,673)
$
430,089,307
$
4,857,078
33
(a)
Represents
net
amount
purchased
(sold).
(b)
As
of
period
end,
the
entity
is
no
longer
held.
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.
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
Bank
of
Montreal
.......
0.24
%
07/15/20
10/19/20  
$
102,143,000
$
102,195,433
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
69,821,095
69,855,443
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
20,166,049
20,175,970
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
28,893,997
28,908,211
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
7,517,441
7,521,139
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
9,876,250
9,881,109
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
21,765,020
21,775,727
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
24,163,345
24,175,232
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
23,607,174
23,618,788
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
Daiwa
Capital
Markets
America,
Inc.
.......
0.23
07/15/20
10/19/20  
14,770,568
14,777,834
U.S.
Government
Sponsored
Agency
Securities
Up
to
30
days
$
322,723,939
$
322,884,886
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
96
Schedule
of
Investments
(continued)
September
30,
2020
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
...............................................................
1,047
12/08/20
$
139,045
$
387,018
90-day
Eurodollar
.........................................................
2,698
12/14/20
672,847
813,376
U.S.
Treasury
2
Year
Note
....................................................
5,661
12/31/20
1,250,860
514,076
1,714,470
Short
Contracts
Euro-
Bobl
...............................................................
1,187
12/08/20
188,116
(152,520)
Euro-Bund
..............................................................
382
12/08/20
78,163
(476,485)
Euro-Schatz
.............................................................
2,410
12/08/20
317,287
(100,734)
U.S.
Treasury
10
Year
Note
...................................................
1,161
12/21/20
161,996
(124,028)
U.S.
Treasury
10
Year
Ultra
Note
...............................................
47
12/21/20
7,516
(33,333)
U.S.
Treasury
Long
Bond
....................................................
86
12/21/20
15,160
(6,739)
U.S.
Treasury
Ultra
Bond
....................................................
97
12/21/20
21,516
117,769
U.S.
Treasury
5
Year
Note
....................................................
5,659
12/31/20
713,211
(766,118)
(1,542,188)
$
172,282
Forward
Foreign
Currency
Exchange
Contracts
Currency
Purchased
Currency
Sold
Counterparty
Settlement
Date
Unrealized
Appreciation  
(Depreciation)
EUR
200,481,000
USD
234,763,251
UBS
AG
10/05/20
$
305,306
GBP
7,984,000
USD
10,258,642
HSBC
Bank
plc
10/05/20
43,650
USD
10,796
EUR
9,000
State
Street
Bank
and
Trust
Co.
10/05/20
243
USD
479,056,115
EUR
400,632,000
UBS
AG
10/05/20
9,305,934
USD
10,141,699
GBP
7,618,000
Bank
of
America
NA
10/05/20
311,682
AUD
5,083,000
USD
3,620,493
Bank
of
America
NA
10/06/20
20,234
USD
3,793,986
AUD
5,167,000
BNP
Paribas
SA
10/06/20
93,092
USD
16,064,628
EUR
13,699,271
UBS
AG
10/07/20
1,254
USD
235,429,850
EUR
200,481,000
Goldman
Sachs
International
11/04/20
210,904
EUR
13,850,000
NOK
151,136,067
Goldman
Sachs
International
12/16/20
60,333
EUR
14,420,000
USD
16,904,249
Natwest
Markets
plc
12/16/20
32,258
NZD
24,392,352
AUD
22,400,000
Barclays
Bank
plc
12/16/20
88,303
USD
16,276,865
EUR
13,810,000
JPMorgan
Chase
Bank
NA
12/16/20
56,813
USD
159,665,249
CAD
210,400,000
Standard
Chartered
Bank
02/03/21
1,566,310
USD
148,244,799
CAD
193,488,000
State
Street
Bank
and
Trust
Co.
02/03/21
2,853,889
14,950,205
EUR
200,481,000
USD
235,284,501
Goldman
Sachs
International
10/05/20
(215,945)
USD
374,203
EUR
321,000
Morgan
Stanley
&
Co.
International
plc
10/05/20
(2,177)
USD
470,007
GBP
366,000
Barclays
Bank
plc
10/05/20
(2,267)
USD
160,230,959
JPY
17,000,000,000
Commonwealth
Bank
of
Australia
10/13/20
(979,344)
EUR
13,699,271
USD
16,073,943
UBS
AG
11/04/20
(959)
USD
3,620,743
AUD
5,083,000
Bank
of
America
NA
11/04/20
(20,241)
USD
234,908,600
EUR
200,481,000
UBS
AG
11/04/20
(310,346)
USD
10,260,262
GBP
7,984,000
HSBC
Bank
plc
11/04/20
(43,704)
AUD
22,400,000
NZD
24,385,500
JPMorgan
Chase
Bank
NA
12/16/20
(83,770)
EUR
13,810,000
USD
16,321,500
Bank
of
America
NA
12/16/20
(101,448)
NOK
148,094,411
EUR
13,850,000
JPMorgan
Chase
Bank
NA
12/16/20
(386,497)
USD
16,813,345
EUR
14,420,000
Bank
of
America
NA
12/16/20
(123,161)
USD
3,886,813
EUR
3,310,104
HSBC
Bank
plc
12/16/20
(954)
USD
132,493,865
JPY
14,000,000,000
State
Street
Bank
and
Trust
Co.
02/25/21
(542,619)
(2,813,432)
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
97
Schedule
of
Investments
(continued)
September
30,
2020
Exchange-Traded
Options
Purchased
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
U.S.
Treasury
10
Year
Note
.....................
1,190
11/20/20
USD
139.50
USD
119,000
$
855,313
U.S.
Treasury
10
Year
Note
.....................
1,190
11/20/20
USD
138.00
USD
119,000
353,281
$
1,208,594
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
1-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
0.39%
Semi-Annual
Bank
of
America
NA
05/22/23
0.39
%
USD
75,970
$
177,231
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.49%
Semi-Annual
Citibank
NA
02/25/25
1.49
USD
14,560
974,512
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.28%
Semi-Annual
Goldman
Sachs
Bank
USA
06/04/25
1.28
USD
6,435
357,436
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.43%
Semi-Annual
Citibank
NA
06/05/25
1.43
USD
41,250
2,619,624
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.43%
Semi-Annual
Deutsche
Bank
AG
06/05/25
1.43
USD
22,650
1,434,645
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.43%
Semi-Annual
UBS
AG
06/05/25
1.43
USD
6,435
407,591
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
2.07%
Semi-Annual
JPMorgan
Chase
Bank
NA
01/17/40
2.07
USD
11,730
1,351,223
7,322,262
Put
10-Year
Interest
Rate
Swap
(a)
1.49%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
02/25/25
1.49
USD
14,560
556,642
10-Year
Interest
Rate
Swap
(a)
1.28%
Semi-Annual
3
month
LIBOR
Quarterly
Goldman
Sachs
Bank
USA
06/04/25
1.28
USD
6,435
314,677
10-Year
Interest
Rate
Swap
(a)
1.43%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
06/05/25
1.43
USD
41,250
1,763,039
10-Year
Interest
Rate
Swap
(a)
1.43%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
06/05/25
1.43
USD
22,650
970,751
10-Year
Interest
Rate
Swap
(a)
1.43%
Semi-Annual
3
month
LIBOR
Quarterly
UBS
AG
06/05/25
1.43
USD
6,435
275,796
10-Year
Interest
Rate
Swap
(a)
2.07%
Semi-Annual
3
month
LIBOR
Quarterly
JPMorgan
Chase
Bank
NA
01/17/40
2.07
USD
11,730
618,600
4,499,505
$
11,821,767
(a)
Forward
settling
swaption.
Exchange-Traded
Options
Written
Description
Number
of
Contracts
Expiration
Date
Exercise
Price
Notional
Amount
(000)
Value
Put
U.S.
Treasury
10
Year
Note
......................
1,190
11/20/20
USD
139.00
USD
119,000
$
(632,188)
U.S.
Treasury
10
Year
Note
......................
1,190
11/20/20
USD
138.50
USD
119,000
(483,438)
$
(1,115,626)
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
Call
10-Year
Interest
Rate
Swap
(a)
1.70%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
10/23/20
1.70
%
USD
64,060
$
(6,246,650)
10-Year
Interest
Rate
Swap
(a)
1.58%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
10/27/20
1.58
USD
57,590
(4,894,049)
2-Year
Interest
Rate
Swap
(a)
.
1.45%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
01/25/21
1.45
USD
145,610
(3,606,400)
5-Year
Interest
Rate
Swap
(a)
.
0.10%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
02/08/21
0.10
USD
715,000
(496,546)
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
98
Schedule
of
Investments
(continued)
September
30,
2020
OTC
Interest
Rate
Swaptions
Written
(continued)
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
10-Year
Interest
Rate
Swap
(a)
0.69%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
04/06/21
0.69
%
USD
6,640
$
(91,568)
10-Year
Interest
Rate
Swap
(a)
0.69%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
04/06/21
0.69
USD
6,640
(92,844)
10-Year
Interest
Rate
Swap
(a)
0.71%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
04/06/21
0.71
USD
13,290
(197,513)
10-Year
Interest
Rate
Swap
(a)
0.73%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
04/06/21
0.73
USD
7,980
(125,006)
10-Year
Interest
Rate
Swap
(a)
0.85%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
04/07/21
0.85
USD
5,313
(117,100)
10-Year
Interest
Rate
Swap
(a)
0.87%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
04/09/21
0.87
USD
13,420
(311,939)
10-Year
Interest
Rate
Swap
(a)
0.88%
Semi-Annual
3
month
LIBOR
Quarterly
Barclays
Bank
plc
04/14/21
0.88
USD
6,680
(159,302)
10-Year
Interest
Rate
Swap
(a)
0.77%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
04/15/21
0.77
USD
6,315
(111,134)
10-Year
Interest
Rate
Swap
(a)
0.79%
Semi-Annual
3
month
LIBOR
Quarterly
Citibank
NA
04/15/21
0.79
USD
7,420
(140,097)
10-Year
Interest
Rate
Swap
(a)
0.72%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
04/16/21
0.72
USD
6,315
(97,051)
10-Year
Interest
Rate
Swap
(a)
0.74%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
04/19/21
0.74
USD
20,450
(340,605)
10-Year
Interest
Rate
Swap
(a)
0.69%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
05/13/21
0.69
USD
41,980
(619,009)
10-Year
Interest
Rate
Swap
(a)
0.69%
Semi-Annual
3
month
LIBOR
Quarterly
Goldman
Sachs
Bank
USA
05/13/21
0.69
USD
13,500
(199,062)
10-Year
Interest
Rate
Swap
(a)
0.75%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
06/02/21
0.75
USD
27,560
(496,726)
10-Year
Interest
Rate
Swap
(a)
0.74%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
06/25/21
0.74
USD
13,745
(252,470)
10-Year
Interest
Rate
Swap
(a)
0.72%
Semi-Annual
3
month
LIBOR
Quarterly
BNP
Paribas
SA
06/29/21
0.72
USD
13,745
(237,260)
10-Year
Interest
Rate
Swap
(a)
0.67%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
07/14/21
0.67
USD
36,520
(566,826)
10-Year
Interest
Rate
Swap
(a)
0.45%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
09/30/21
0.45
USD
16,950
(162,720)
10-Year
Interest
Rate
Swap
(a)
1.65%
Semi-Annual
3
month
LIBOR
Quarterly
Bank
of
America
NA
01/18/22
1.65
USD
16,320
(1,366,709)
10-Year
Interest
Rate
Swap
(a)
1.65%
Semi-Annual
3
month
LIBOR
Quarterly
JPMorgan
Chase
Bank
NA
01/18/22
1.65
USD
49,450
(4,141,162)
5-Year
Interest
Rate
Swap
(a)
.
(0.12)%
Annual
6
month
EURIBOR
Semi-Annual
Barclays
Bank
plc
04/04/22
(0.12)
EUR
28,850
(551,407)
5-Year
Interest
Rate
Swap
(a)
.
(0.02)%
Annual
6
month
EURIBOR
Semi-Annual
Barclays
Bank
plc
04/07/22
(0.02)
EUR
33,180
(782,296)
5-Year
Interest
Rate
Swap
(a)
.
(0.02)%
Annual
6
month
EURIBOR
Semi-Annual
BNP
Paribas
SA
04/07/22
(0.02)
EUR
20,470
(482,628)
5-Year
Interest
Rate
Swap
(a)
.
0.61%
Semi-Annual
3
month
LIBOR
Quarterly
BNP
Paribas
SA
06/15/22
0.61
USD
12,610
(164,122)
5-Year
Interest
Rate
Swap
(a)
.
0.61%
Semi-Annual
3
month
LIBOR
Quarterly
Morgan
Stanley
&
Co.
International
plc
06/15/22
0.61
USD
38,210
(497,312)
1-Year
Interest
Rate
Swap
(a)
.
0.69%
Semi-Annual
3
month
LIBOR
Quarterly
Deutsche
Bank
AG
04/11/23
0.69
USD
75,970
(317,490)
(27,865,003)
Put
2-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
1.05%
Semi-Annual
Goldman
Sachs
Bank
USA
10/02/20
1.05
USD
134,880
—
2-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
1.00%
Semi-Annual
Deutsche
Bank
AG
10/05/20
1.00
USD
61,435
—
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.70%
Semi-Annual
Citibank
NA
10/23/20
1.70
USD
64,060
(1)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.58%
Semi-Annual
Barclays
Bank
plc
10/27/20
1.58
USD
57,590
(18)
2-Year
Interest
Rate
Swap
(a)
.
6
month
EURIBOR
Semi-Annual
0.00%
Annual
Bank
of
America
NA
01/18/21
0.00
EUR
366,950
(5,963)
2-Year
Interest
Rate
Swap
(a)
.
6
month
EURIBOR
Semi-Annual
0.00%
Annual
BNP
Paribas
SA
01/18/21
0.00
EUR
121,090
(1,968)
2-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
1.45%
Semi-Annual
Bank
of
America
NA
01/25/21
1.45
USD
145,610
(33)
5-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
0.40%
Semi-Annual
Deutsche
Bank
AG
02/08/21
0.40
USD
715,000
(2,806,829)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
Deutsche
Bank
AG
04/06/21
0.69
USD
6,640
(141,393)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
Barclays
Bank
plc
04/06/21
0.69
USD
6,640
(139,735)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.71%
Semi-Annual
Barclays
Bank
plc
04/06/21
0.71
USD
13,290
(265,266)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.73%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
04/06/21
0.73
USD
7,980
(151,975)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.85%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
04/07/21
0.85
USD
5,313
(72,636)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.87%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
04/09/21
0.87
USD
13,420
(175,334)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.88%
Semi-Annual
Barclays
Bank
plc
04/14/21
0.88
USD
6,680
(87,163)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.77%
Semi-Annual
Bank
of
America
NA
04/15/21
0.77
USD
6,315
(113,198)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.79%
Semi-Annual
Citibank
NA
04/15/21
0.79
USD
7,420
(124,300)
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
99
Schedule
of
Investments
(continued)
September
30,
2020
OTC
Interest
Rate
Swaptions
Written
(continued)
Paid
by
the
Fund
Received
by
the
Fund
Description
Rate
Frequency
Rate
Frequency
Counterparty
Expiration
Date
Exercise
Rate
Notional
Amount
(000)
Value
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.72%
Semi-Annual
Bank
of
America
NA
04/16/21
0.72
%
USD
6,315
$
(128,684)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.74%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
04/19/21
0.74
USD
20,450
(393,172)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
Bank
of
America
NA
05/13/21
0.69
USD
41,980
(1,000,560)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
Goldman
Sachs
Bank
USA
05/13/21
0.69
USD
13,500
(321,762)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.00%
Semi-Annual
Bank
of
America
NA
06/01/21
1.00
USD
58,920
(675,988)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.75%
Semi-Annual
Deutsche
Bank
AG
06/02/21
0.75
USD
27,560
(597,069)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.05%
Semi-Annual
Bank
of
America
NA
06/11/21
1.05
USD
13,380
(141,086)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.74%
Semi-Annual
Bank
of
America
NA
06/25/21
0.74
USD
13,745
(318,967)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.72%
Semi-Annual
BNP
Paribas
SA
06/29/21
0.72
USD
13,745
(341,115)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.10%
Semi-Annual
Citibank
NA
07/14/21
1.10
USD
8,470
(89,721)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.67%
Semi-Annual
Bank
of
America
NA
07/14/21
0.67
USD
36,520
(1,039,331)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.10%
Semi-Annual
Citibank
NA
07/16/21
1.10
USD
8,710
(93,160)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.95%
Semi-Annual
Barclays
Bank
plc
08/04/21
0.95
USD
11,520
(185,434)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.95%
Semi-Annual
Bank
of
America
NA
08/05/21
0.95
USD
40,020
(647,750)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
0.95%
Semi-Annual
Deutsche
Bank
AG
08/05/21
0.95
USD
12,540
(202,968)
5-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
0.60%
Semi-Annual
Deutsche
Bank
AG
09/03/21
0.60
USD
51,720
(247,508)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.45%
Semi-Annual
Bank
of
America
NA
09/30/21
1.45
USD
33,900
(244,128)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.15%
Semi-Annual
Bank
of
America
NA
01/10/22
1.15
USD
7,740
(124,713)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
2.15%
Semi-Annual
Bank
of
America
NA
01/18/22
2.15
USD
16,320
(43,159)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
2.15%
Semi-Annual
JPMorgan
Chase
Bank
NA
01/18/22
2.15
USD
49,450
(130,773)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.95%
Semi-Annual
Bank
of
America
NA
01/28/22
1.95
USD
8,130
(31,703)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.95%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
01/28/22
1.95
USD
24,630
(96,046)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.85%
Semi-Annual
Bank
of
America
NA
02/22/22
1.85
USD
33,900
(171,726)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.60%
Semi-Annual
Deutsche
Bank
AG
02/28/22
1.60
USD
15,890
(127,654)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.60%
Semi-Annual
Deutsche
Bank
AG
03/03/22
1.60
USD
15,890
(128,965)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.60%
Semi-Annual
Bank
of
America
NA
03/04/22
1.60
USD
34,860
(283,586)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.60%
Semi-Annual
Barclays
Bank
plc
03/04/22
1.60
USD
15,433
(125,547)
10-Year
Interest
Rate
Swap
(a)
3
month
LIBOR
Quarterly
1.60%
Semi-Annual
Deutsche
Bank
AG
03/04/22
1.60
USD
24,575
(199,918)
5-Year
Interest
Rate
Swap
(a)
.
6
month
EURIBOR
Semi-Annual
(0.12)%
Annual
Barclays
Bank
plc
04/04/22
(0.12)
EUR
28,850
(157,375)
5-Year
Interest
Rate
Swap
(a)
.
6
month
EURIBOR
Semi-Annual
(0.02)%
Annual
Barclays
Bank
plc
04/07/22
(0.02)
EUR
33,180
(141,183)
5-Year
Interest
Rate
Swap
(a)
.
6
month
EURIBOR
Semi-Annual
(0.02)%
Annual
BNP
Paribas
SA
04/07/22
(0.02)
EUR
20,470
(87,101)
5-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
0.61%
Semi-Annual
BNP
Paribas
SA
06/15/22
0.61
USD
12,610
(137,777)
5-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
0.61%
Semi-Annual
Morgan
Stanley
&
Co.
International
plc
06/15/22
0.61
USD
38,210
(417,483)
1-Year
Interest
Rate
Swap
(a)
.
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
Deutsche
Bank
AG
04/11/23
0.69
USD
75,970
(77,783)
(13,236,707)
$
(41,101,710)
(a)
Forward
settling
swaption.
Centrally
Cleared
Interest
Rate
Swap
s
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)
3
month
LIBOR
Quarterly
0.68%
Semi-Annual
N/A
03/06/22
USD
12,200
$
84,845
$
—
$
84,845
(0.30)%
Annual
6
month
EURIBOR
Semi-Annual
N/A
03/23/22
EUR
5,380
(8,223)
—
(8,223)
6
month
EURIBOR
Semi-Annual
(0.30)%
Annual
N/A
07/20/22
EUR
16,320
58,464
—
58,464
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
100
Schedule
of
Investments
(continued)
September
30,
2020
Centrally
Cleared
Interest
Rate
Swaps
(continued)
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)
(0.40)%
Annual
6
month
EURIBOR
Semi-Annual
N/A
07/21/22
EUR
30,190
$
(40,881)
$
—
$
(40,881)
6
month
EURIBOR
Semi-Annual
(0.24)%
Annual
N/A
07/27/22
EUR
15,750
81,467
—
81,467
0.21%
Semi-Annual
3
month
LIBOR
Quarterly
01/06/21
(a)
09/15/22
USD
162,110
(23,563)
185
(23,748)
3
month
LIBOR
Quarterly
0.34%
Semi-Annual
N/A
09/29/22
USD
35,180
95,160
—
95,160
6
month
EURIBOR
Semi-Annual
(0.35)%
Annual
11/02/20
(a)
11/02/22
EUR
4,320
14,241
—
14,241
6
month
EURIBOR
Semi-Annual
(0.42)%
Annual
12/24/20
(a)
12/24/22
EUR
28,470
43,345
(7,976)
51,321
(0.41)%
Annual
6
month
EURIBOR
Semi-Annual
02/16/21
(a)
02/16/23
EUR
37,590
(69,277)
—
(69,277)
(0.40)%
Annual
6
month
EURIBOR
Semi-Annual
02/16/21
(a)
02/16/23
EUR
37,570
(72,806)
—
(72,806)
3
month
LIBOR
Quarterly
1.05%
Semi-Annual
03/01/21
(a)
03/01/23
USD
18,940
316,876
—
316,876
3
month
LIBOR
Quarterly
1.06%
Semi-Annual
03/01/21
(a)
03/01/23
USD
18,940
318,390
—
318,390
3
month
LIBOR
Quarterly
1.07%
Semi-Annual
03/01/21
(a)
03/01/23
USD
18,990
323,596
—
323,596
3
month
LIBOR
Quarterly
1.10%
Semi-Annual
03/01/21
(a)
03/01/23
USD
75,820
1,335,183
—
1,335,183
3
month
LIBOR
Quarterly
0.88%
Semi-Annual
03/02/21
(a)
03/02/23
USD
38,010
504,424
—
504,424
3
month
LIBOR
Quarterly
0.90%
Semi-Annual
03/02/21
(a)
03/02/23
USD
18,990
261,881
—
261,881
(0.18)%
Annual
6
month
EURIBOR
Semi-Annual
03/24/21
(a)
03/24/23
EUR
28,010
(200,524)
—
(200,524)
(0.17)%
Annual
6
month
EURIBOR
Semi-Annual
03/24/21
(a)
03/24/23
EUR
27,850
(206,797)
—
(206,797)
(0.18)%
Annual
6
month
EURIBOR
Semi-Annual
03/24/21
(a)
03/24/23
EUR
27,850
(202,684)
—
(202,684)
6
month
EURIBOR
Semi-Annual
(0.31)%
Annual
04/29/21
(a)
04/29/23
EUR
10,470
43,167
—
43,167
6
month
EURIBOR
Semi-Annual
(0.34)%
Annual
05/03/21
(a)
05/03/23
EUR
4,310
14,147
—
14,147
6
month
EURIBOR
Semi-Annual
(0.38)%
Annual
05/04/21
(a)
05/04/23
EUR
5,230
12,254
—
12,254
6
month
EURIBOR
Semi-Annual
(0.42)%
Annual
06/24/21
(a)
06/24/23
EUR
15,260
22,861
261
22,600
6
month
EURIBOR
Semi-Annual
(0.40)%
Annual
06/25/21
(a)
06/25/23
EUR
15,180
29,942
(293)
30,235
3
month
LIBOR
Quarterly
0.25%
Semi-Annual
07/08/22
(a)
07/08/23
USD
28,890
(11,109)
—
(11,109)
6
month
EURIBOR
Semi-Annual
(0.41)%
Annual
07/20/21
(a)
07/20/23
EUR
6,300
10,061
—
10,061
(0.43)%
Annual
6
month
EURIBOR
Semi-Annual
08/05/21
(a)
08/05/23
EUR
11,750
(12,913)
—
(12,913)
6
month
EURIBOR
Semi-Annual
(0.43)%
Annual
08/09/21
(a)
08/09/23
EUR
4,530
4,849
(448)
5,297
6
month
EURIBOR
Semi-Annual
(0.43)%
Annual
08/10/21
(a)
08/10/23
EUR
7,040
8,029
—
8,029
6
month
EURIBOR
Semi-Annual
(0.38)%
Annual
08/17/21
(a)
08/17/23
EUR
9,220
20,737
—
20,737
0.30%
Semi-Annual
3
month
LIBOR
Quarterly
01/06/21
(a)
02/28/25
USD
44,120
27,877
—
27,877
0.30%
Semi-Annual
3
month
LIBOR
Quarterly
01/06/21
(a)
02/28/25
USD
23,470
18,152
3,226
14,926
3
month
LIBOR
Quarterly
0.36%
Semi-Annual
N/A
06/02/25
USD
21,910
46,477
—
46,477
3
month
LIBOR
Quarterly
0.27%
Semi-Annual
N/A
08/10/25
USD
5,000
(18,928)
—
(18,928)
0.35%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/18/25
USD
17,750
(5,751)
2,903
(8,654)
6
month
EURIBOR
Semi-Annual
(0.43)%
Annual
N/A
09/21/25
EUR
6,510
(1,059)
(2,582)
1,523
6
month
EURIBOR
Semi-Annual
(0.44)%
Annual
N/A
09/23/25
EUR
4,670
(4,091)
—
(4,091)
3
month
LIBOR
Quarterly
0.33%
Semi-Annual
N/A
09/23/25
USD
8,732
(9,247)
—
(9,247)
0.35%
Semi-Annual
3
month
LIBOR
Quarterly
10/01/20
(a)
10/01/25
USD
6,450
3,132
—
3,132
6
month
EURIBOR
Semi-Annual
(0.34)%
Annual
07/20/21
(a)
07/20/26
EUR
11,930
34,862
—
34,862
0.65%
Semi-Annual
3
month
LIBOR
Quarterly
04/20/22
(a)
04/20/27
USD
24,710
(120,715)
—
(120,715)
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
101
Schedule
of
Investments
(continued)
September
30,
2020
Centrally
Cleared
Interest
Rate
Swaps
(continued)
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)
3
month
LIBOR
Quarterly
0.65%
Semi-Annual
06/20/22
(a)
06/20/27
USD
21,680
$
77,539
$
—
$
77,539
3
month
LIBOR
Quarterly
0.68%
Semi-Annual
06/20/22
(a)
06/20/27
USD
21,680
107,161
—
107,161
6
month
EURIBOR
Semi-Annual
(0.30)%
Annual
08/09/22
(a)
08/09/27
EUR
7,500
6,519
—
6,519
3
month
LIBOR
Quarterly
0.50%
Semi-Annual
12/31/20
(a)
08/15/27
USD
58,900
(36,153)
—
(36,153)
6
month
EURIBOR
Semi-Annual
(0.25)%
Annual
08/16/22
(a)
08/16/27
EUR
29,600
116,958
—
116,958
(0.26)%
Annual
6
month
EURIBOR
Semi-Annual
08/16/22
(a)
08/16/27
EUR
7,410
(25,702)
—
(25,702)
0.50%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/17/27
USD
25,550
(14,031)
—
(14,031)
0.50%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/19/27
USD
5,980
(2,811)
—
(2,811)
3
month
LIBOR
Quarterly
0.65%
Semi-Annual
07/12/23
(a)
07/12/28
USD
21,830
(102,015)
—
(102,015)
3
month
LIBOR
Quarterly
1.43%
Semi-Annual
N/A
02/25/30
USD
7,865
556,007
—
556,007
3
month
LIBOR
Quarterly
1.32%
Semi-Annual
N/A
02/26/30
USD
4,085
245,537
—
245,537
3
month
LIBOR
Quarterly
0.70%
Semi-Annual
N/A
05/28/30
USD
34,520
68,171
28,812
39,359
3
month
LIBOR
Quarterly
0.95%
Semi-Annual
N/A
09/08/30
USD
23,740
551,507
—
551,507
3
month
LIBOR
Quarterly
1.02%
Semi-Annual
N/A
09/08/30
USD
10,635
320,422
—
320,422
3
month
LIBOR
Quarterly
0.68%
Semi-Annual
N/A
09/16/30
USD
1,631
(5,420)
(1,969)
(3,451)
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
N/A
09/16/30
USD
9,710
(25,572)
—
(25,572)
3
month
LIBOR
Quarterly
0.69%
Semi-Annual
N/A
09/23/30
USD
4,490
(14,598)
—
(14,598)
3
month
LIBOR
Quarterly
0.70%
Semi-Annual
N/A
09/28/30
USD
4,250
(9,682)
—
(9,682)
3
month
LIBOR
Quarterly
0.72%
Semi-Annual
N/A
09/30/30
USD
4,180
(1,049)
—
(1,049)
3
month
LIBOR
Quarterly
0.70%
Semi-Annual
10/01/20
(a)
10/01/30
USD
4,510
(8,412)
—
(8,412)
3
month
LIBOR
Quarterly
0.75%
Semi-Annual
04/07/21
(a)
04/07/31
USD
1,150
—
—
—
0.76%
Semi-Annual
3
month
LIBOR
Quarterly
06/03/21
(a)
06/03/31
USD
20,150
74,543
—
74,543
0.86%
Semi-Annual
3
month
LIBOR
Quarterly
10/04/21
(a)
10/04/31
USD
1,480
—
—
—
0.77%
Semi-Annual
3
month
LIBOR
Quarterly
05/06/22
(a)
05/06/32
USD
20,860
287,611
—
287,611
3
month
LIBOR
Quarterly
0.79%
Semi-Annual
05/09/22
(a)
05/09/32
USD
9,310
(111,251)
—
(111,251)
0.97%
Semi-Annual
3
month
LIBOR
Quarterly
N/A
08/17/40
USD
3,550
51,829
—
51,829
3
month
LIBOR
Quarterly
1.08%
Semi-Annual
12/31/20
(a)
02/15/47
USD
8,430
(86,865)
—
(86,865)
3
month
LIBOR
Quarterly
1.09%
Semi-Annual
12/31/20
(a)
02/15/47
USD
8,300
(60,017)
—
(60,017)
3
month
LIBOR
Quarterly
1.02%
Semi-Annual
N/A
08/17/50
USD
2,470
(64,998)
—
(64,998)
3
month
LIBOR
Quarterly
0.99%
Semi-Annual
N/A
08/21/50
USD
1,575
(53,851)
—
(53,851)
3
month
LIBOR
Quarterly
1.06%
Semi-Annual
N/A
09/16/50
USD
329
(5,700)
(1,545)
(4,155)
1.10%
Semi-Annual
3
month
LIBOR
Quarterly
11/25/20
(a)
11/25/50
USD
4,010
—
—
—
1.09%
Semi-Annual
3
month
LIBOR
Quarterly
06/20/22
(a)
06/20/52
USD
3,940
96,669
—
96,669
1.14%
Semi-Annual
3
month
LIBOR
Quarterly
06/20/22
(a)
06/20/52
USD
3,940
49,227
—
49,227
0.88%
Semi-Annual
3
month
LIBOR
Quarterly
07/12/23
(a)
07/12/53
USD
4,020
348,231
—
348,231
$
5,055,655
$
20,574
$
5,035,081
(a)
Forward
swap.
OTC
Credit
Default
Swap
s
—
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)
Walt
Disney
Co.
(The)
......
1.00
%
Quarterly
BNP
Paribas
SA
06/20/24
USD
3,355
$
(106,102)
$
(94,524)
$
(11,578)
Walt
Disney
Co.
(The)
......
1.00
Quarterly
BNP
Paribas
SA
06/20/24
USD
2,858
(90,383)
(82,355)
(8,028)
Financial
Guaranty
Insurance
Company
.............
1.00
Quarterly
JPMorgan
Chase
Bank
NA
12/20/24
USD
1,500
(4,123)
38,838
(42,961)
$
–
$
–
$
–
$
(200,608)
$
(138,041)
$
(62,567)
$
–
$
–
$
–
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
102
Schedule
of
Investments
(continued)
September
30,
2020
i
OTC
Credit
Default
Swap
s
—
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)
Boeing
Co.
(The)
......
1.00
%
Quarterly
BNP
Paribas
SA
12/20/20
BBB-
USD
25,000
$
(86,531)
$
39,662
$
(126,193)
Financial
Guaranty
Insurance
Company
..
1.00
Quarterly
Citibank
NA
06/20/24
BBB-
USD
15,005
110,801
(855,051)
965,852
$
24,270
$
(815,389)
$
839,659
(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.
The
following
reference
rates,
and
their
values
as
of
period
end,
are
used
for
security
descriptions:
Reference
Index
Reference
Rate
3
month
LIBOR
.......................................
London
Interbank
Offered
Rate
0.23
%
6
month
EURIBOR
.....................................
Euro
Interbank
Offered
Rate
(0.48)
Balances
Reported
in
the
Statements
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)
...........................................
$
35,387
$
(14,813)
$
6,670,291
$
(1,635,210)
$
—
OTC
Swaps
.....................................................
78,500
(1,031,930)
965,852
(188,760)
—
Options
Written
...................................................
N/A
N/A
12,438,784
(16,495,319)
(42,217,336)
(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
Statements
of
Assets
and
Liabilities
and
is
net
of
any
previously
paid
(received)
swap
premium
amounts.
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
103
Schedule
of
Investments
(continued)
September
30,
2020
Derivative
Financial
Instruments
Categorized
by
Risk
Exposure
As
of
period
end,
the
fair
values
of
derivative
financial
instruments
located
in
the
Statements
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)
.....
$
—
$
—
$
—
$
—
$
1,832,239
$
—
$
1,832,239
Forward
foreign
currency
exchange
contracts
Unrealized
appreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
14,950,205
—
—
14,950,205
Options
purchased
(b)
Investments
at
value
—
unaffiliated
(c)
...........
—
—
—
—
13,030,361
—
13,030,361
Swaps
—
centrally
cleared
Unrealized
appreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
6,670,291
—
6,670,291
Swaps
—
OTC
Unrealized
appreciation
on
OTC
swaps;
Swap
premiums
paid
................................
—
1,044,352
—
—
—
—
1,044,352
$
—
$
1,044,352
$
—
$
14,950,205
$
21,532,891
$
—
$
37,527,448
Liabilities
—
Derivative
Financial
Instruments
Futures
contracts
Unrealized
depreciation
on
futures
contracts
(a)
.....
—
—
—
—
1,659,957
—
1,659,957
Forward
foreign
currency
exchange
contracts
Unrealized
depreciation
on
forward
foreign
currency
exchange
contracts
......................
—
—
—
2,813,432
—
—
2,813,432
Options
written
Options
written
at
value
.....................
—
—
—
—
42,217,336
—
42,217,336
Swaps
—
centrally
cleared
Unrealized
depreciation
on
centrally
cleared
swaps
(a)
.
—
—
—
—
1,635,210
—
1,635,210
Swaps
—
OTC
Unrealized
depreciation
on
OTC
swaps;
Swap
premiums
received
.............................
—
1,220,690
—
—
—
—
1,220,690
$
—
$
1,220,690
$
—
$
2,813,432
$
45,512,503
$
—
$
49,546,625
(a)
Net
cumulative
unrealized
appreciation
(depreciation)
on
futures
contracts
and
centrally
cleared
swaps,
if
any,
are
reported
in
the
Schedule
of
Investments.
In
the
Statements
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
forward
settling
swaptions.
(c)
Includes
options
purchased
at
value
as
reported
in
the
Schedule
of
Investments.
For
the
year
ended
September
30,
2020,
the
effect
of
derivative
financial
instruments
in
the
Statements
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
.......................
$
—
$
—
$
—
$
—
$
(17,637,715)
$
—
$
(17,637,715)
Forward
foreign
currency
exchange
contracts
....
—
—
—
(20,517,804)
—
—
(20,517,804)
Options
purchased
(a)
....................
—
—
—
—
(2,275,387)
—
(2,275,387)
Options
written
........................
—
—
—
—
295,618
—
295,618
Swaps
..............................
—
(28,060,725)
—
—
(6,165,208)
—
(34,225,933)
$
—
$
(28,060,725)
$
—
$
(20,517,804)
$
(25,782,692)
$
—
$
(74,361,221)
Net
Change
in
Unrealized
Appreciation
(Depreciation)
on:
Futures
contracts
.......................
—
—
—
—
3,589,261
—
3,589,261
Forward
foreign
currency
exchange
contracts
....
—
—
—
9,502,251
—
—
9,502,251
Options
purchased
(b)
....................
—
—
—
—
35,265
—
35,265
Options
written
........................
—
—
—
—
(4,056,535)
—
(4,056,535)
Swaps
..............................
—
1,575,294
—
—
5,388,432
—
6,963,726
$
—
$
1,575,294
$
—
$
9,502,251
$
4,956,423
$
—
$
16,033,968
(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.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
104
Schedule
of
Investments
(continued)
September
30,
2020
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
Average
Quarterly
Balances
of
Outstanding
Derivative
Financial
Instruments
Futures
contracts:
Average
notional
value
of
contracts
—
long
..................................................................................
$
2,922,762,291
Average
notional
value
of
contracts
—
short
.................................................................................
1,522,072,335
Forward
foreign
currency
exchange
contracts:
Average
amounts
purchased
—
in
USD
....................................................................................
1,278,125,229
Average
amounts
sold
—
in
USD
........................................................................................
460,969,381
Options:
Average
value
of
option
contracts
purchased
................................................................................
709,606
Average
value
of
option
contracts
written
...................................................................................
569,118
Average
notional
value
of
swaption
contracts
purchased
.........................................................................
290,182,117
Average
notional
value
of
swaption
contracts
written
...........................................................................
2,023,538,663
Credit
default
swaps:
Average
notional
value
—
buy
protection
...................................................................................
98,049,916
Average
notional
value
—
sell
protection
...................................................................................
133,419,283
Interest
rate
swaps:
Average
notional
value
—
pays
fixed
rate
...................................................................................
348,894,421
Average
notional
value
—
receives
fixed
rate
................................................................................
545,093,854
The
Fund's
derivative
assets
and
liabilities
(by
type)
were
as
follows:
Assets
Liabilities
Derivative
Financial
Instruments:
$
—
Futures
contracts
....................................................................................
$
1,525,796
$
142,264
Forward
foreign
currency
exchange
contracts
.................................................................
14,950,205
2,813,432
Options
(a)
.........................................................................................
13,030,361
42,217,336
Swaps
—
Centrally
cleared
.............................................................................
—
287,446
Swaps
—
OTC
(b)
....................................................................................
1,044,352
1,220,690
Total
derivative
assets
and
liabilities
in
the
Statements
of
Assets
and
Liabilities
............................................
$
30,550,714
$
46,681,168
Derivatives
not
subject
to
a
Master
Netting
Agreement
or
similar
agreement
("MNA")
........................................
(2,734,390)
(1,545,336)
Total
derivative
assets
and
liabilities
subject
to
an
MNA
............................................................
$
27,816,324
$
45,135,832
(a)
Includes
options
purchased
at
value
which
is
included
in
Investments
at
value
–
unaffiliated
in
the
Statements
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
Statements
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
(b)
Cash
Collateral
Received
Net
Amount
of
Derivative
Assets
(c)(d)
Bank
of
America
NA
..............................
$
509,147
$
(509,147)
$
—
$
—
$
—
Barclays
Bank
plc
................................
88,303
(88,303)
—
—
—
BNP
Paribas
SA
.................................
132,754
(132,754)
—
—
—
Citibank
NA
....................................
6,879,669
(6,879,669)
—
—
—
Deutsche
Bank
AG
...............................
2,405,396
(2,405,396)
—
—
—
Goldman
Sachs
Bank
USA
..........................
672,113
(520,824)
—
—
151,289
Goldman
Sachs
International
........................
271,237
(215,945)
—
—
55,292
HSBC
Bank
plc
..................................
43,650
(43,650)
—
—
—
JPMorgan
Chase
Bank
NA
..........................
2,065,474
(2,065,474)
—
—
—
Natwest
Markets
plc
..............................
32,258
—
—
—
32,258
Standard
Chartered
Bank
...........................
1,566,310
—
—
—
1,566,310
State
Street
Bank
and
Trust
Co.
......................
2,854,132
(542,619)
—
—
2,311,513
UBS
AG
......................................
10,295,881
(311,305)
(722,408)
—
9,262,168
$
27,816,324
$
(13,715,086)
$
(722,408)
$
—
$
13,378,830
BlackRock
Low
Duration
Bond
Portfolio
Schedules
of
Investments
105
Schedule
of
Investments
(continued)
September
30,
2020
Counterparty
Derivative
Liabilities
Subject
to
an
MNA
by
Counterparty
Derivatives
Available
for
Offset
(a)
Non-cash
Collateral
Pledged
Cash
Collateral
Pledged
(e)
Net
Amount
of
Derivative
Liabilities
(d)(f)
Bank
of
America
NA
..............................
$
11,997,744
$
(509,147)
$
—
$
(11,080,000)
$
408,597
Barclays
Bank
plc
................................
7,781,399
(88,303)
—
(7,693,096)
—
BNP
Paribas
SA
.................................
1,774,649
(132,754)
—
(1,641,895)
—
Citibank
NA
....................................
7,548,980
(6,879,669)
—
(669,311)
—
Commonwealth
Bank
of
Australia
.....................
979,344
—
—
—
979,344
Deutsche
Bank
AG
...............................
5,932,417
(2,405,396)
—
(2,670,000)
857,021
Goldman
Sachs
Bank
USA
..........................
520,824
(520,824)
—
—
—
Goldman
Sachs
International
........................
215,945
(215,945)
—
—
—
HSBC
Bank
plc
..................................
44,658
(43,650)
—
—
1,008
JPMorgan
Chase
Bank
NA
..........................
4,785,163
(2,065,474)
—
(2,450,000)
269,689
Morgan
Stanley
&
Co.
International
plc
..................
2,700,785
—
—
(2,700,785)
—
State
Street
Bank
and
Trust
Co.
......................
542,619
(542,619)
—
—
—
UBS
AG
......................................
311,305
(311,305)
—
—
—
$
45,135,832
$
(13,715,086)
$
—
$
(28,905,087)
$
2,515,659
(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)
Excess
of
collateral
received
from
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(c)
Net
amount
represents
the
net
amount
receivable
from
the
counterparty
in
the
event
of
default.
(d)
Net
amount
may
also
include
forward
foreign
currency
exchange
contracts
that
are
not
required
to
be
collateralized.
(e)
Excess
of
collateral
pledged
to
the
individual
counterparty
is
not
shown
for
financial
reporting
purposes.
(f)
Net
amount
represents
the
net
amount
payable
due
to
the
counterparty
in
the
event
of
default.
2020
BlackRock
Annual
Report
to
Shareholders
BlackRock
Low
Duration
Bond
Portfolio
106
Schedule
of
Investments
(continued)
September
30,
2020
See
notes
to
financial
statements.
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
description
of
the
input
levels
and
information
about
the
Fund’s
policy
regarding
valuation
of
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.
The
breakdown
of
the
Fund's
investments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Long-Term
Investments:
Asset-Backed
Securities
....................................
$
—
$
1,065,246,345
$
55,564,499
$
1,120,810,844
Corporate
Bonds
........................................
—
2,834,424,044
—
2,834,424,044
Floating
Rate
Loan
Interests
.................................
—
36,653
—
36,653
Foreign
Agency
Obligations
.................................
—
322,832,205
—
322,832,205
Foreign
Government
Obligations
..............................
—
108,290,278
—
108,290,278
Investment
Companies
....................................
159,349,800
—
—
159,349,800
Municipal
Bonds
.........................................
—
16,890,276
—
16,890,276
Non-Agency
Mortgage-Backed
Securities
........................
—
1,025,558,738
7,498,178
1,033,056,916
U.S.
Government
Sponsored
Agency
Securities
....................
—
736,376,717
—
736,376,717
U.S.
Treasury
Obligations
...................................
—
695,468,721
—
695,468,721
Short-Term
Securities:
Commercial
Paper
.......................................
—
75,921,688
—
75,921,688
Foreign
Government
Obligations
..............................
—
294,028,065
—
294,028,065
Money
Market
Funds
......................................
270,721,972
—
—
270,721,972
Options
Purchased:
Interest
rate
contracts
......................................
1,208,594
11,821,767
—
13,030,361
$
431,280,366
$
7,186,895,497
$
63,062,677
$
7,681,238,540
Derivative
Financial
Instruments
(a)
Assets:
Credit
contracts
...........................................
$
—
$
965,852
$
—
$
965,852
Foreign
currency
exchange
contracts
............................
—
14,950,205
—
14,950,205
Interest
rate
contracts
.......................................
1,832,239
6,670,291
—
8,502,530
Liabilities:
Credit
contracts
...........................................
—
(188,760)
—
(188,760)
Foreign
currency
exchange
contracts
............................
—
(2,813,432)
—
(2,813,432)
Interest
rate
contracts
.......................................
(2,775,583)
(42,736,920)
—
(45,512,503)
$
(943,344)
$
(23,152,764)
$
—
$
(24,096,108)
(a)
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
a
greements
of
$322,884,886
are
categorized
as
Level
2
within
the
disclosure
hierarchy.
Statements
of
Assets
and
Liabilities

September
30,
2020
107
Financial
Statements
BlackRock
Core
Bond
Portfolio
BlackRock
High
Yield
Bond
Portfolio
(a)
BlackRock
Low
Duration
Bond
Portfolio
ASSETS
Investments
at
value
—
unaffiliated
(b)
(c)
.........................................................
$
4,508,919,318‌
$
23,563,883,762‌
$
7,251,149,233‌
Investments
at
value
—
affiliated
(d)
............................................................
364,094,477‌
1,473,216,421‌
430,089,307‌
Cash  
...............................................................................
285,513‌
2,368,591‌
115‌
Cash
pledged:
Collateral
—
OTC
derivatives
..............................................................
1,450,000‌
4,895,000‌
30,690,000‌
Collateral
—
TBA
commitments
.............................................................
27,872‌
—‌
—‌
Futures
contracts
......................................................................
8,875,520‌
23,826,999‌
7,764,999‌
Centrally
cleared
swaps
..................................................................
3,859,778‌
15,366,000‌
3,283,000‌
Foreign
currency
at
value
(e)
.................................................................
9,455,626‌
18,999,377‌
14,277,513‌
Receivables:
–‌
–‌
–‌
Investments
sold
......................................................................
283,453,800‌
84,296,637‌
51,058,107‌
Securities
lending
income
—
affiliated
........................................................
—‌
25,970‌
—‌
Swaps  
............................................................................
—‌
3,345,655‌
—‌
TBA
sale
commitments
..................................................................
241,353,956‌
—‌
—‌
Capital
shares
sold
.....................................................................
8,936,855‌
92,175,612‌
37,671,113‌
Dividends
—
affiliated
...................................................................
12,017‌
23,047‌
6,780‌
Dividends
—
unaffiliated
.................................................................
—‌
693,095‌
6‌
Interest
—
unaffiliated
...................................................................
24,629,790‌
311,503,917‌
34,731,299‌
From
the
Manager
.....................................................................
253,155‌
—‌
197,458‌
Variation
margin
on
futures
contracts
.........................................................
987,743‌
3,988,532‌
1,525,796‌
Variation
margin
on
centrally
cleared
swaps
....................................................
37,128‌
—‌
—‌
Swap
premiums
paid
.....................................................................
601,620‌
1,968,091‌
78,500‌
Unrealized
appreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
2,661,396‌
17,563,458‌
14,950,205‌
OTC
swaps
..........................................................................
4,309,037‌
25,624,666‌
965,852‌
Unfunded
floating
rate
loan
interests
.........................................................
—‌
349,201‌
—‌
Prepaid
expenses
.......................................................................
175,014‌
522,548‌
119,985‌
Other
assets
...........................................................................
—‌
17,096‌
—‌
Total
assets
...........................................................................
5,464,379,615‌
25,644,653,675‌
7,878,559,268‌
LIABILITIES
Cash
received
as
collateral
for
OTC
derivatives
...................................................
1,710,000‌
16,320,000‌
—‌
Cash
collateral
on
securities
loaned
at
value
.....................................................
—‌
167,576,478‌
—‌
Options
written
at
value
(f)
..................................................................
175,875‌
79,527‌
42,217,336‌
TBA
sale
commitments
at
value
(g)
............................................................
241,226,024‌
—‌
—‌
Reverse
repurchase
agreements
at
value
.......................................................
—‌
—‌
322,884,886‌
Payables:
–‌
–‌
–‌
Investments
purchased
..................................................................
951,273,306‌
423,613,902‌
30,836,366‌
Swaps  
............................................................................
—‌
6,815,793‌
—‌
Accounting
services
fees
.................................................................
134,425‌
577,077‌
213,965‌
Administration
fees
.....................................................................
127,806‌
1,089,972‌
211,748‌
Capital
shares
redeemed
.................................................................
4,843,895‌
124,875,631‌
15,016,961‌
Custodian
fees
........................................................................
95,294‌
192,116‌
81,863‌
Income
dividend
distributions
..............................................................
1,073,586‌
11,298,890‌
1,695,046‌
Investment
advisory
fees
.................................................................
1,099,799‌
8,258,641‌
1,664,475‌
Trustees'
and
Officer's
fees
...............................................................
4,404‌
84,666‌
36,954‌
Other
affiliate
fees
.....................................................................
5,942‌
92,896‌
455‌
Printing
and
postage
fees
................................................................
50,692‌
113,631‌
141,451‌
Professional
fees
......................................................................
96,217‌
251,320‌
105,352‌
Registration
fees
......................................................................
55,825‌
254,799‌
109,768‌
Service
and
distribution
fees
...............................................................
149,237‌
538,387‌
357,345‌
Transfer
agent
fees
....................................................................
843,887‌
4,205,049‌
1,399,038‌
Other
accrued
expenses
.................................................................
20,635‌
231,328‌
38,410‌
Variation
margin
on
futures
contracts
.........................................................
1,626,786‌
—‌
142,264‌
Variation
margin
on
centrally
cleared
swaps
....................................................
—‌
180,749‌
287,446‌
Swap
premiums
received
..................................................................
407,880‌
2,878,863‌
1,031,930‌
Unrealized
depreciation
on:
–‌
–‌
–‌
Forward
foreign
currency
exchange
contracts
...................................................
1,831,388‌
1,168,357‌
2,813,432‌
OTC
swaps
..........................................................................
3,847,741‌
2,102,499‌
188,760‌
Total
liabilities
..........................................................................
1,210,700,644‌
772,800,571‌
421,475,251‌
NET
ASSETS
..........................................................................
$
4,253,678,971‌
$
24,871,853,104‌
$
7,457,084,017‌
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
108
See
notes
to
financial
statements.
BlackRock
Core
Bond
Portfolio
BlackRock
High
Yield
Bond
Portfolio
(a)
BlackRock
Low
Duration
Bond
Portfolio
NET
ASSETS
CONSIST
OF
Paid-in
capital
..........................................................................
$
3,971,941,283‌
$
25,416,115,983‌
$
7,441,646,061‌
Accumulated
earnings
(loss)
................................................................
281,737,688‌
(544,262,879‌)
15,437,956‌
NET
ASSETS
..........................................................................
$
4,253,678,971‌
$
24,871,853,104‌
$
7,457,084,017‌
(a)
  Consolidated
Statement
of
Assets
and
Liabilities.
(b)
  Investments
at
cost
—
unaffiliated
...........................................................
$
4,370,086,660‌
$
23,000,227,886‌
$
7,136,743,428‌
(c)
  Securities
loaned
at
value
................................................................
$
—‌
$
164,251,457‌
$
—‌
(d)
  Investments
at
cost
—
affiliated
............................................................
$
364,094,477‌
$
1,457,866,900‌
$
430,178,721‌
(e)
  Foreign
currency
at
cost
.................................................................
$
8,558,162‌
$
19,012,029‌
$
14,725,120‌
(f)
  Premiums
received
.....................................................................
$
381,675‌
$
124,305‌
$
38,160,801‌
(g)
  Proceeds
from
TBA
sale
commitments
.......................................................
$
241,353,956‌
$
—‌
$
—‌
Statements
of
Assets
and
Liabilities
(continued)
September
30,
2020
109
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Core
Bond
Portfolio
BlackRock
High
Yield
Bond
Portfolio
(a)
BlackRock
Low
Duration
Bond
Portfolio
NET
ASSET
VALUE
Institutional
Net
assets
...........................................................................
$
2,608,893,003‌
$
11,680,174,678‌
$
5,375,700,930‌
Share
outstanding
(h)
....................................................................
250,132,123‌
1,573,194,600‌
553,749,973‌
Net
asset
value
.......................................................................
$
10.43‌
$
7.42‌
$
9.71‌
Service
Net
assets
...........................................................................
$
44,455,007‌
$
125,535,565‌
$
29,942,016‌
Share
outstanding
(h)
....................................................................
4,261,076‌
16,899,213‌
3,085,666‌
Net
asset
value
.......................................................................
$
10.43‌
$
7.43‌
$
9.70‌
Investor
A
Net
assets
...........................................................................
$
532,706,489‌
$
1,298,176,056‌
$
1,412,985,281‌
Share
outstanding
(h)
....................................................................
51,001,857‌
174,917,239‌
145,588,266‌
Net
asset
value
.......................................................................
$
10.44‌
$
7.42‌
$
9.71‌
Investor
A1
Net
assets
...........................................................................
$
—‌
$
—‌
$
8,140,851‌
Share
outstanding
(h)
....................................................................
—‌
—‌
838,140‌
Net
asset
value
.......................................................................
$
—‌
$
—‌
$
9.71‌
Investor
C
Net
assets
...........................................................................
$
36,598,837‌
$
186,557,541‌
$
69,912,985‌
Share
outstanding
(h)
....................................................................
3,519,138‌
25,096,264‌
7,206,965‌
Net
asset
value
.......................................................................
$
10.40‌
$
7.43‌
$
9.70‌
Class
K
Net
assets
...........................................................................
$
1,029,002,426‌
$
11,470,944,473‌
$
557,996,555‌
Share
outstanding
(h)
....................................................................
98,359,940‌
1,543,916,819‌
57,527,506‌
Net
asset
value
.......................................................................
$
10.46‌
$
7.43‌
$
9.70‌
Class
R
Net
assets
...........................................................................
$
2,023,209‌
$
110,464,791‌
$
2,405,399‌
Share
outstanding
(h)
....................................................................
193,616‌
14,880,558‌
247,908‌
Net
asset
value
.......................................................................
$
10.45‌
$
7.42‌
$
9.70‌
(h)
Unlimited
number
of
shares
authorized,
$0.001
par
value.
Statements
of
Operations

Year
Ended
September
30,
2020
2020
BlackRock
Annual
Report
to
Shareholders
110
See
notes
to
financial
statements.
BlackRock
Core
Bond
Portfolio
BlackRock
High
Yield
Bond
Portfolio
(a)
BlackRock
Low
Duration
Bond
Portfolio
INVESTMENT
INCOME
–
–
–
Dividends
—
affiliated
...................................................................
$
2,135,250‌
$
24,558,086‌
$
4,855,865‌
Dividends
—
unaffiliated
.................................................................
6,787‌
17,528,971‌
16,344‌
Interest
—
affiliated
....................................................................
—‌
—‌
1,213‌
Interest
—
unaffiliated
...................................................................
90,144,091‌
1,139,577,547‌
171,085,932‌
Securities
lending
income
—
affiliated
—
net
...................................................
—‌
690,693‌
—‌
Foreign
taxes
withheld
..................................................................
(127,386‌)
(13,826‌)
(29,779‌)
Total
investment
income
...................................................................
92,158,742‌
1,182,341,471‌
175,929,575‌
EXPENSES
Investment
advisory
....................................................................
12,793,238‌
81,517,591‌
20,541,485‌
Transfer
agent
—
class
specific
............................................................
3,628,447‌
15,811,481‌
6,223,824‌
Service
and
distribution
—
class
specific
......................................................
1,714,458‌
6,416,612‌
4,818,411‌
Administration
.......................................................................
1,419,890‌
6,496,834‌
2,539,749‌
Administration
—
class
specific
............................................................
762,025‌
3,989,408‌
1,447,425‌
Accounting
services
....................................................................
261,399‌
1,079,190‌
437,894‌
Registration
.........................................................................
219,047‌
565,338‌
420,801‌
Custodian
...........................................................................
177,813‌
318,010‌
152,771‌
Professional
.........................................................................
105,341‌
575,112‌
220,389‌
Printing
and
postage
...................................................................
77,881‌
181,367‌
179,461‌
Trustees
and
Officer
....................................................................
43,888‌
216,005‌
88,014‌
Miscellaneous
........................................................................
132,851‌
354,600‌
180,304‌
Total
expenses
excluding
interest
expense
.......................................................
21,336,278‌
117,521,548‌
37,250,528‌
Interest
expense
........................................................................
—‌
105,633‌
460,844‌
Total
expenses
.........................................................................
21,336,278‌
117,627,181‌
37,711,372‌
Less:
–‌
–‌
–‌
Transfer
agent
fees
waived
and/or
reimbursed
—
class
specific
.......................................
(2,195,958‌)
—‌
(1,774,643‌)
Administration
fees
waived
—
class
specific
....................................................
(761,092‌)
(166‌)
(1,401,549‌)
Fees
waived
and/or
reimbursed
by
the
Manager
.................................................
(748,779‌)
(2,144,445‌)
(575,944‌)
Total
expenses
after
fees
waived
and/or
reimbursed
................................................
17,630,449‌
115,482,570‌
33,959,236‌
Net
investment
income
....................................................................
74,528,293‌
1,066,858,901‌
141,970,339‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
198,051,797‌
$
104,841,977‌
$
57,135,272‌
Net
realized
gain
(loss)
from:
Investments
—
affiliated
...............................................................
$
1,499,603‌
$
23,566,000‌
$
(3,629,828‌)
Investments
—
unaffiliated
.............................................................
116,370,213‌
(27,355,496‌)
62,232,971‌
Capital
gain
distributions
from
underlying
funds
—
affiliated
........................................
379‌
532‌
33‌
Forward
foreign
currency
exchange
contracts
.................................................
(1,673,545‌)
(52,196,357‌)
(20,517,804‌)
Foreign
currency
transactions
...........................................................
(480,122‌)
2,314,765‌
(1,779,702‌)
Futures
contracts
....................................................................
46,212,767‌
(41,385,599‌)
(17,637,715‌)
Options
written
.....................................................................
1,356,440‌
(44,107,664‌)
295,618‌
Swaps  
..........................................................................
7,182,838‌
(59,645,029‌)
(34,225,933‌)
170,468,573‌
(198,808,848‌)
(15,262,360‌)
Net
change
in
unrealized
appreciation
(depreciation)
on:
Investments
—
affiliated
...............................................................
—‌
14,575,864‌
(730,673‌)
Investments
—
unaffiliated
.............................................................
28,117,058‌
253,942,134‌
57,344,064‌
Forward
foreign
currency
exchange
contracts
.................................................
(2,454,094‌)
12,152,908‌
9,502,251‌
Foreign
currency
translations
............................................................
867,995‌
809,309‌
(214,461‌)
Futures
contracts
....................................................................
572,275‌
(4,302,671‌)
3,589,261‌
Options
written
.....................................................................
205,800‌
44,778‌
(4,056,535‌)
Swaps  
..........................................................................
274,190‌
26,079,302‌
6,963,726‌
Unfunded
floating
rate
loan
interests
.......................................................
—‌
349,201‌
—‌
27,583,224‌
303,650,825‌
72,397,633‌
Net
realized
and
unrealized
gain
.............................................................
198,051,797‌
104,841,977‌
57,135,273‌
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
....................................
$
272,580,090‌
$
1,171,700,878‌
$
199,105,612‌
Suppression
logic
for
footnote
(a)
  Consolidated
Statement
of
Operations.
Statements
of
Changes
in
Net
Assets

111
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Core
Bond
Portfolio
Year
Ended
September
30,
2020
2019
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
..................................................................................
$
74,528,293‌
$
89,983,257‌
Net
realized
gain
......................................................................................
170,468,573‌
54,790,153‌
Net
change
in
unrealized
appreciation
(depreciation)
..............................................................
27,583,224‌
166,045,774‌
Net
increase
in
net
assets
resulting
from
operations
.................................................................
272,580,090‌
310,819,184‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
  Institutional
.........................................................................................
(49,434,860‌)
(54,866,553‌)
  Service
............................................................................................
(787,490‌)
(1,140,698‌)
  Investor
A
..........................................................................................
(8,763,836‌)
(12,439,292‌)
  Investor
C
..........................................................................................
(513,089‌)
(1,075,593‌)
  Class
K
............................................................................................
(20,445,401‌)
(22,749,446‌)
  Class
R
............................................................................................
(39,393‌)
(69,151‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.......................................................
(79,984,069‌)
(92,340,733‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.......................................................
711,251,379‌
126,135,356‌
NET
ASSETS
Total
increase
in
net
assets
.................................................................................
903,847,400‌
344,613,807‌
Beginning
of
year
........................................................................................
3,349,831,571‌
3,005,217,764‌
End
of
year
............................................................................................
$
4,253,678,971‌
$
3,349,831,571‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Statements
of
Changes
in
Net
Assets
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
112
See
notes
to
financial
statements.
BlackRock
High
Yield
Bond
Portfolio
(a)
BlackRock
Low
Duration
Bond
Portfolio
Year
Ended
September
30,
Year
Ended
September
30,
2020
2019
2020
2019
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
....................................................
$
1,066,858,901‌
$
919,180,188‌
$
141,970,339‌
$
166,297,469‌
Net
realized
gain
(loss)
....................................................
(198,808,848‌)
(289,393,310‌)
(15,262,360‌)
8,591,929‌
Net
change
in
unrealized
appreciation
(depreciation)
................................
303,650,825‌
307,547,007‌
72,397,633‌
113,482,608‌
Net
increase
in
net
assets
resulting
from
operations
...................................
1,171,700,878‌
937,333,885‌
199,105,612‌
288,372,006‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(b)
From
net
investment
income:
  Institutional
...........................................................
(616,071,967‌)
(580,933,412‌)
(115,301,168‌)
(124,569,486‌)
  Service
..............................................................
(6,666,756‌)
(9,749,405‌)
(591,917‌)
(777,510‌)
  Investor
A
............................................................
(67,742,223‌)
(72,925,661‌)
(26,897,801‌)
(31,842,725‌)
  Investor
A1
...........................................................
—
—‌
(176,265‌)
(237,126‌)
  Investor
C
............................................................
(10,830,785‌)
(14,058,610‌)
(1,648,998‌)
(2,783,764‌)
  Investor
C1
...........................................................
(25,535‌)
(121,119‌)
—‌
—‌
  Investor
C2
...........................................................
—‌
—‌
(94‌)
(3,312‌)
  Investor
C3
...........................................................
—‌
—‌
(2,568‌)
(12,932‌)
  Class
K
..............................................................
(404,866,808‌)
(250,925,461‌)
(12,119,525‌)
(10,204,261‌)
  Class
R
..............................................................
(5,876,512‌)
(6,710,371‌)
(51,743‌)
(83,184‌)
From
return
of
capital:
–
–
–
–
  Institutional
...........................................................
—‌
—‌
(310,562‌)
(2,335,509‌)
  Service
..............................................................
—‌
—‌
(1,594‌)
(14,577‌)
  Investor
A
............................................................
—‌
—‌
(72,449‌)
(597,009‌)
  Investor
A1
...........................................................
—‌
—‌
(475‌)
(4,446‌)
  Investor
C
............................................................
—‌
—‌
(4,442‌)
(52,192‌)
  Investor
C2
...........................................................
—‌
—‌
—‌
(62‌)
  Investor
C3
...........................................................
—‌
—‌
(7‌)
(242‌)
  Class
K
..............................................................
—‌
—‌
(32,644‌)
(191,316‌)
  Class
R
..............................................................
—‌
—‌
(139‌)
(1,560‌)
Decrease
in
net
assets
resulting
from
distributions
to
shareholders
.........................
(1,112,080,586‌)
(935,424,039‌)
(157,212,391‌)
(173,711,213‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
.........................
7,601,116,726‌
1,246,394,497‌
12,327,310‌
1,270,043,891‌
NET
ASSETS
Total
increase
in
net
assets
...................................................
7,660,737,018‌
1,248,304,343‌
54,220,531‌
1,384,704,684‌
Beginning
of
year
..........................................................
17,211,116,086‌
15,962,811,743‌
7,402,863,486‌
6,018,158,802‌
End
of
year
..............................................................
$
24,871,853,104‌
$
17,211,116,086‌
$
7,457,084,017‌
$
7,402,863,486‌
(a)
Consolidated
Statements
of
Changes
in
Net
Assets.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
113
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(d)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.02%.
(e)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Core
Bond
Portfolio
Institutional
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.92‌
$
9.25‌
$
9.65‌
$
9.86‌
$
9.65‌
Net
investment
income
(a)
.....................................
0.20‌
0.28‌
0.25‌
0.23‌
0.21‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.53‌
0.68‌
(0.39‌)
(0.19‌)
0.24‌
Net
increase
(decrease)
from
investment
operations
....................
0.73‌
0.96‌
(0.14‌)
0.04‌
0.45‌
Distributions
from
net
investment
income
(b)
........................
(0.22‌)
(0.29‌)
(0.26‌)
(0.25‌)
(0.24‌)
Net
asset
value,
end
of
year
...................................
$
10.43‌
$
9.92‌
$
9.25‌
$
9.65‌
$
9.86‌
Total
Return
(c)
7.42%
10.52%
(1.50)%
—
—
Based
on
net
asset
value
......................................
7.42%
10.52%
(1.50)%
0.46%
4.78%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
0.54%
(d)
0.60%
0.62%
0.66%
0.62%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.43%
(d)
0.51%
0.54%
0.52%
0.50%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.43%
(d)
0.43%
0.44%
0.43%
0.45%
Net
investment
income
.......................................
1.98%
(d)
2.94%
2.61%
2.36%
2.16%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
2,608,893‌
$
1,935,102‌
$
1,762,677‌
$
1,778,980‌
$
1,853,077‌
Portfolio
turnover
rate
(e)
.......................................
692%
684%
658%
712%
594%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
488%
481%
455%
493%
422%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
114
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(d)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
(e)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.02%.
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Core
Bond
Portfolio
Service
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.92‌
$
9.25‌
$
9.65‌
$
9.86‌
$
9.66‌
Net
investment
income
(a)
.....................................
0.18‌
0.26‌
0.22‌
0.20‌
0.18‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.52‌
0.67‌
(0.39‌)
(0.18‌)
0.23‌
Net
increase
(decrease)
from
investment
operations
....................
0.70‌
0.93‌
(0.17‌)
0.02‌
0.41‌
Distributions
from
net
investment
income
(b)
........................
(0.19‌)
(0.26‌)
(0.23‌)
(0.23‌)
(0.21‌)
Net
asset
value,
end
of
year
...................................
$
10.43‌
$
9.92‌
$
9.25‌
$
9.65‌
$
9.86‌
Total
Return
(c)
7.16%
10.24%
(1.74)%
0.20%
4.32%
Based
on
net
asset
value
......................................
7.16%
10.24%
(1.74)%
0.20%
4.32%
Ratios
to
Average
Net
Assets
Total
expenses
(d)
............................................
0.85%
(e)
0.94%
0.98%
0.92%
0.87%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.68%
(e)
0.76%
0.79%
0.78%
0.84%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.68%
(e)
0.68%
0.69%
0.68%
0.79%
Net
investment
income
.......................................
1.76%
(e)
2.70%
2.36%
2.11%
1.81%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
44,455‌
$
40,195‌
$
49,375‌
$
55,196‌
$
55,154‌
Portfolio
turnover
rate
(f)
.......................................
692%
684%
658%
712%
594%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
N/A
N/A
0.92%
0.80%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
488%
481%
455%
493%
422%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
115
Financial
Highlights
(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
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(d)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.02%.
(e)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Core
Bond
Portfolio
Investor
A
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.93‌
$
9.26‌
$
9.66‌
$
9.87‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.18‌
0.26‌
0.22‌
0.20‌
0.18‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.52‌
0.67‌
(0.39‌)
(0.18‌)
0.23‌
Net
increase
(decrease)
from
investment
operations
....................
0.70‌
0.93‌
(0.17‌)
0.02‌
0.41‌
Distributions
from
net
investment
income
(b)
........................
(0.19‌)
(0.26‌)
(0.23‌)
(0.23‌)
(0.21‌)
Net
asset
value,
end
of
year
...................................
$
10.44‌
$
9.93‌
$
9.26‌
$
9.66‌
$
9.87‌
Total
Return
(c)
7.15%
10.24%
(1.74)%
—
—
Based
on
net
asset
value
......................................
7.15%
10.24%
(1.74)%
0.21%
4.32%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
0.81%
(d)
0.93%
0.97%
0.96%
0.91%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.68%
(d)
0.76%
0.79%
0.78%
0.84%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.68%
(d)
0.68%
0.69%
0.68%
0.79%
Net
investment
income
.......................................
1.75%
(d)
2.69%
2.36%
2.11%
1.81%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
532,706‌
$
492,426‌
$
427,610‌
$
470,559‌
$
503,640‌
Portfolio
turnover
rate
(e)
.......................................
692%
684%
658%
712%
594%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
488%
481%
455%
493%
422%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
116
(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
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(d)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.02%.
(e)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(f)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Core
Bond
Portfolio
Investor
C
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.89‌
$
9.22‌
$
9.62‌
$
9.83‌
$
9.63‌
Net
investment
income
(a)
.....................................
0.10‌
0.19‌
0.15‌
0.13‌
0.10‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.53‌
0.67‌
(0.39‌)
(0.19‌)
0.24‌
Net
increase
(decrease)
from
investment
operations
....................
0.63‌
0.86‌
(0.24‌)
(0.06‌)
0.34‌
Distributions
from
net
investment
income
(b)
........................
(0.12‌)
(0.19‌)
(0.16‌)
(0.15‌)
(0.14‌)
Net
asset
value,
end
of
year
...................................
$
10.40‌
$
9.89‌
$
9.22‌
$
9.62‌
$
9.83‌
Total
Return
(c)
6.37%
9.45%
(2.49)%
(0.55)%
—
Based
on
net
asset
value
......................................
6.37%
9.45%
(2.49)%
(0.55)%
3.55%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
1.57%
(d)
1.68%
1.68%
1.68%
(e)
1.63%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.43%
(d)
1.51%
1.54%
1.52%
1.59%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
1.43%
(d)
1.43%
1.44%
1.44%
1.54%
Net
investment
income
.......................................
1.02%
(d)
1.96%
1.63%
1.35%
1.06%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
36,599‌
$
49,848‌
$
61,437‌
$
71,628‌
$
110,227‌
Portfolio
turnover
rate
(f)
.......................................
692%
684%
658%
712%
594%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
488%
481%
455%
493%
422%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
117
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(d)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.02%.
(e)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Core
Bond
Portfolio
Class
K
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.95‌
$
9.28‌
$
9.68‌
$
9.89‌
$
9.68‌
Net
investment
income
(a)
.....................................
0.21‌
0.29‌
0.25‌
0.23‌
0.21‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.52‌
0.67‌
(0.39‌)
(0.18‌)
0.25‌
Net
increase
(decrease)
from
investment
operations
....................
0.73‌
0.96‌
(0.14‌)
0.05‌
0.46‌
Distributions
from
net
investment
income
(b)
........................
(0.22‌)
(0.29‌)
(0.26‌)
(0.26‌)
(0.25‌)
Net
asset
value,
end
of
year
...................................
$
10.46‌
$
9.95‌
$
9.28‌
$
9.68‌
$
9.89‌
Total
Return
(c)
7.46%
10.55%
(1.44)%
—
—
Based
on
net
asset
value
......................................
7.46%
10.55%
(1.44)%
0.52%
4.83%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
0.42%
(d)
0.51%
0.54%
0.54%
0.49%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.38%
(d)
0.46%
0.49%
0.48%
0.45%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.38%
(d)
0.38%
0.39%
0.38%
0.40%
Net
investment
income
.......................................
2.04%
(d)
2.99%
2.66%
2.41%
2.20%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
1,029,002‌
$
829,549‌
$
701,197‌
$
753,563‌
$
701,478‌
Portfolio
turnover
rate
(e)
.......................................
692%
684%
658%
712%
594%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
488%
481%
455%
493%
422%
See
notes
to
financial
statements.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
118
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(d)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
of
0.02%.
(e)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
BlackRock
Core
Bond
Portfolio
Class
R
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.94‌
$
9.27‌
$
9.67‌
$
9.88‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.16‌
0.23‌
0.20‌
0.18‌
0.15‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.52‌
0.68‌
(0.39‌)
(0.19‌)
0.25‌
Net
increase
(decrease)
from
investment
operations
....................
0.68‌
0.91‌
(0.19‌)
(0.01‌)
0.40‌
Distributions
from
net
investment
income
(b)
........................
(0.17‌)
(0.24‌)
(0.21‌)
(0.20‌)
(0.19‌)
Net
asset
value,
end
of
year
...................................
$
10.45‌
$
9.94‌
$
9.27‌
$
9.67‌
$
9.88‌
Total
Return
(c)
6.88%
9.95%
(1.98)%
—
—
Based
on
net
asset
value
......................................
6.88%
9.95%
(1.98)%
(0.04)%
4.16%
Ratios
to
Average
Net
Assets
Total
expenses
.............................................
1.08%
(d)
1.21%
1.25%
1.24%
1.21%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.93%
(d)
1.01%
1.04%
1.03%
1.09%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.93%
(d)
0.93%
0.94%
0.93%
1.04%
Net
investment
income
.......................................
1.54%
(d)
2.45%
2.13%
1.86%
1.56%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
2,023‌
$
2,712‌
$
2,921‌
$
3,900‌
$
3,761‌
Portfolio
turnover
rate
(e)
.......................................
692%
684%
658%
712%
594%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
488%
481%
455%
493%
422%
See
notes
to
financial
statements.
Consolidated
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
119
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
BlackRock
High
Yield
Bond
Portfolio
Institutional
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
7.68‌
$
7.67‌
$
7.85‌
$
7.61‌
$
7.42‌
Net
investment
income
(a)
.....................................
0.40‌
0.44‌
0.42‌
0.43‌
0.41‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.24‌)
0.02‌
(0.16‌)
0.28‌
0.24‌
Net
increase
from
investment
operations
............................
0.16‌
0.46‌
0.26‌
0.71‌
0.65‌
Distributions
from
net
investment
income
(b)
........................
(0.42‌)
(0.45‌)
(0.44‌)
(0.47‌)
(0.46‌)
Net
asset
value,
end
of
year
...................................
$
7.42‌
$
7.68‌
$
7.67‌
$
7.85‌
$
7.61‌
Total
Return
(c)
2.21%
6.34%
3.48%
—
—
Based
on
net
asset
value
......................................
2.21%
6.34%
3.48%
9.64%
(d)
9.21%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
0.59%
0.60%
0.61%
0.62%
0.61%
(f)
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.58%
0.60%
0.61%
0.61%
0.61%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
and
income
tax
...........................................
0.58%
0.60%
0.61%
0.59%
0.60%
Net
investment
income
.......................................
5.37%
5.89%
5.49%
5.61%
5.58%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
11,680,175‌
$
10,693,110‌
$
9,680,691‌
$
9,728,106‌
$
9,031,925‌
Portfolio
turnover
rate
........................................
119%
102%
90%
86%
90%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.04%
0.02%
0.01%
0.01%
0.01%
See
notes
to
financial
statements.
Consolidated
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
120
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
BlackRock
High
Yield
Bond
Portfolio
Service
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
7.68‌
$
7.67‌
$
7.85‌
$
7.62‌
$
7.42‌
Net
investment
income
(a)
.....................................
0.38‌
0.42‌
0.40‌
0.41‌
0.39‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.23‌)
0.02‌
(0.16‌)
0.27‌
0.25‌
Net
increase
from
investment
operations
............................
0.15‌
0.44‌
0.24‌
0.68‌
0.64‌
Distributions
from
net
investment
income
(b)
........................
(0.40‌)
(0.43‌)
(0.42‌)
(0.45‌)
(0.44‌)
Net
asset
value,
end
of
year
...................................
$
7.43‌
$
7.68‌
$
7.67‌
$
7.85‌
$
7.62‌
Total
Return
(c)
2.08%
6.06%
3.19%
—
—
Based
on
net
asset
value
......................................
2.08%
6.06%
3.19%
9.15%
(d)
9.04%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
(f)
............................................
0.86%
0.87%
0.90%
0.93%
0.90%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.85%
0.87%
0.89%
0.93%
0.89%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
and
income
tax
...........................................
0.85%
0.87%
0.89%
0.90%
0.89%
Net
investment
income
.......................................
5.13%
5.64%
5.20%
5.31%
5.32%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
125,536‌
$
154,658‌
$
176,188‌
$
231,741‌
$
378,766‌
Portfolio
turnover
rate
........................................
119%
102%
90%
86%
90%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.04%
0.02%
0.01%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
N/A
0.90%
N/A
0.90%
See
notes
to
financial
statements.
Consolidated
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
121
Financial
Highlights
(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
the
effects
of
any
sales
charges
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
BlackRock
High
Yield
Bond
Portfolio
Investor
A
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
7.68‌
$
7.67‌
$
7.85‌
$
7.61‌
$
7.42‌
Net
investment
income
(a)
.....................................
0.38‌
0.42‌
0.40‌
0.41‌
0.39‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.25‌)
0.02‌
(0.16‌)
0.28‌
0.24‌
Net
increase
from
investment
operations
............................
0.13‌
0.44‌
0.24‌
0.69‌
0.63‌
Distributions
from
net
investment
income
(b)
........................
(0.39‌)
(0.43‌)
(0.42‌)
(0.45‌)
(0.44‌)
Net
asset
value,
end
of
year
...................................
$
7.42‌
$
7.68‌
$
7.67‌
$
7.85‌
$
7.61‌
Total
Return
(c)
1.90%
6.00%
3.15%
—
—
Based
on
net
asset
value
......................................
1.90%
6.00%
3.15%
9.29%
(d)
8.86%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
(f)
............................................
0.90%
0.94%
0.96%
0.98%
0.93%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.89%
0.92%
0.93%
0.94%
0.93%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
and
income
tax
...........................................
0.89%
0.92%
0.93%
0.91%
0.92%
Net
investment
income
.......................................
5.09%
5.58%
5.17%
5.29%
5.27%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
1,298,176‌
$
1,329,156‌
$
1,326,541‌
$
1,672,705‌
$
3,733,406‌
Portfolio
turnover
rate
........................................
119%
102%
90%
86%
90%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.04%
0.02%
0.01%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
N/A
N/A
0.97%
0.90%
See
notes
to
financial
statements.
Consolidated
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
122
(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
the
effects
of
any
sales
charges
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:
BlackRock
High
Yield
Bond
Portfolio
Investor
C
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
7.69‌
$
7.68‌
$
7.86‌
$
7.62‌
$
7.43‌
Net
investment
income
(a)
.....................................
0.33‌
0.37‌
0.35‌
0.35‌
0.33‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.25‌)
0.02‌
(0.16‌)
0.28‌
0.24‌
Net
increase
from
investment
operations
............................
0.08‌
0.39‌
0.19‌
0.63‌
0.57‌
Distributions
from
net
investment
income
(b)
........................
(0.34‌)
(0.38‌)
(0.37‌)
(0.39‌)
(0.38‌)
Net
asset
value,
end
of
year
...................................
$
7.43‌
$
7.69‌
$
7.68‌
$
7.86‌
$
7.62‌
Total
Return
(c)
1.19%
5.25%
2.43%
—
—
Based
on
net
asset
value
......................................
1.19%
5.25%
2.43%
8.48%
(d)
8.04%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
.............................................
1.61%
1.64%
1.64%
1.69%
1.69%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.60%
1.64%
1.63%
1.68%
1.69%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
and
income
tax
...........................................
1.60%
1.64%
1.63%
1.66%
1.68%
Net
investment
income
.......................................
4.39%
4.87%
4.47%
4.55%
4.51%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
186,558‌
$
262,204‌
$
329,005‌
$
417,276‌
$
539,243‌
Portfolio
turnover
rate
........................................
119%
102%
90%
86%
90%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.04%
0.02%
0.01%
0.01%
0.01%
See
notes
to
financial
statements.
Consolidated
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
123
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
BlackRock
High
Yield
Bond
Portfolio
Class
K
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
7.68‌
$
7.68‌
$
7.85‌
$
7.62‌
$
7.42‌
Net
investment
income
(a)
.....................................
0.40‌
0.45‌
0.43‌
0.44‌
0.42‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.22‌)
0.01‌
(0.15‌)
0.27‌
0.25‌
Net
increase
from
investment
operations
............................
0.18‌
0.46‌
0.28‌
0.71‌
0.67‌
Distributions
from
net
investment
income
(b)
........................
(0.43‌)
(0.46‌)
(0.45‌)
(0.48‌)
(0.47‌)
Net
asset
value,
end
of
year
...................................
$
7.43‌
$
7.68‌
$
7.68‌
$
7.85‌
$
7.62‌
Total
Return
(c)
2.46%
6.32%
3.73%
—
—
Based
on
net
asset
value
......................................
2.46%
6.32%
3.73%
9.59%
(d)
9.44%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
(f)
............................................
0.48%
0.49%
0.50%
0.53%
0.53%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.47%
0.49%
0.50%
0.52%
0.53%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
and
income
tax
...........................................
0.47%
0.49%
0.50%
0.50%
0.52%
Net
investment
income
.......................................
5.40%
5.99%
5.59%
5.70%
5.71%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
11,470,944‌
$
4,644,939‌
$
4,312,394‌
$
5,363,522‌
$
5,028,654‌
Portfolio
turnover
rate
........................................
119%
102%
90%
86%
90%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.04%
0.02%
0.01%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
0.49%
0.50%
0.53%
0.53%
See
notes
to
financial
statements.
Consolidated
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
124
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Where
applicable,
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:
(f)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
BlackRock
High
Yield
Bond
Portfolio
Class
R
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
7.68‌
$
7.67‌
$
7.85‌
$
7.61‌
$
7.42‌
Net
investment
income
(a)
.....................................
0.36‌
0.40‌
0.38‌
0.38‌
0.36‌
Net
realized
and
unrealized
gain
(loss)
...........................
(0.25‌)
0.02‌
(0.16‌)
0.28‌
0.24‌
Net
increase
from
investment
operations
............................
0.11‌
0.42‌
0.22‌
0.66‌
0.60‌
Distributions
from
net
investment
income
(b)
........................
(0.37‌)
(0.41‌)
(0.40‌)
(0.42‌)
(0.41‌)
Net
asset
value,
end
of
year
...................................
$
7.42‌
$
7.68‌
$
7.67‌
$
7.85‌
$
7.61‌
Total
Return
(c)
1.64%
5.69%
2.83%
—
—
Based
on
net
asset
value
......................................
1.64%
5.69%
2.83%
8.94%
(d)
8.51%
Ratios
to
Average
Net
Assets
(e)
Total
expenses
(f)
............................................
1.16%
1.22%
1.24%
1.26%
1.26%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.15%
1.21%
1.24%
1.26%
1.26%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
and
income
tax
...........................................
1.15%
1.21%
1.24%
1.23%
1.25%
Net
investment
income
.......................................
4.84%
5.28%
4.86%
4.96%
4.95%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
110,465‌
$
125,710‌
$
128,584‌
$
132,868‌
$
113,010‌
Portfolio
turnover
rate
........................................
119%
102%
90%
86%
90%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.04%
0.02%
0.01%
0.01%
0.01%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
N/A
N/A
1.26%
1.26%
See
notes
to
financial
statements.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
125
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees
with
no
financial
impact
to
the
expense
ratios.
(h)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Institutional
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.64‌
$
9.47‌
$
9.63‌
$
9.65‌
$
9.68‌
Net
investment
income
(a)
.....................................
0.19‌
0.25‌
0.21‌
0.16‌
0.16‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.09‌
0.18‌
(0.14‌)
0.02‌
—‌
Net
increase
from
investment
operations
............................
0.28‌
0.43‌
0.07‌
0.18‌
0.16‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.21‌)
(0.26‌)
(0.21‌)
(0.20‌)
(0.19‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.21‌)
(0.26‌)
(0.23‌)
(0.20‌)
(0.19‌)
Net
asset
value,
end
of
year
...................................
$
9.71‌
$
9.64‌
$
9.47‌
$
9.63‌
$
9.65‌
Total
Return
(d)
3.00%
4.59%
0.69%
—
—
Based
on
net
asset
value
......................................
3.00%
4.59%
(e)
0.69%
(e)
1.88%
1.63%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.............................................
0.45%
0.45%
0.52%
(g)
0.49%
(g)
0.50%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.41%
0.40%
0.48%
0.43%
0.47%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.40%
0.40%
0.40%
0.41%
0.45%
Net
investment
income
.......................................
2.03%
2.60%
2.21%
1.69%
1.66%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
5,375,701‌
$
5,374,564‌
$
4,274,410‌
$
3,097,000‌
$
3,020,681‌
Portfolio
turnover
rate
(h)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
126
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
recoupment
of
past
waived
and/or
reimbursed
fees.
Excluding
the
recoupment
of
past
waived
and/or
reimbursed
fees,
the
expense
ratios
were
as
follows:
(h)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Service
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.63‌
$
9.47‌
$
9.63‌
$
9.64‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.17‌
0.22‌
0.18‌
0.14‌
0.13‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.09‌
0.17‌
(0.14‌)
0.02‌
(0.01‌)
Net
increase
from
investment
operations
............................
0.26‌
0.39‌
0.04‌
0.16‌
0.12‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.19‌)
(0.23‌)
(0.18‌)
(0.17‌)
(0.15‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.19‌)
(0.23‌)
(0.20‌)
(0.17‌)
(0.15‌)
Net
asset
value,
end
of
year
...................................
$
9.70‌
$
9.63‌
$
9.47‌
$
9.63‌
$
9.64‌
Total
Return
(d)
2.74%
4.23%
0.43%
—
—
Based
on
net
asset
value
......................................
2.74%
4.23%
(e)
0.43%
(e)
1.73%
1.29%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
(g)
............................................
0.76%
0.76%
0.87%
0.81%
0.81%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.66%
0.65%
0.74%
0.68%
0.81%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.65%
0.65%
0.66%
0.67%
0.79%
Net
investment
income
.......................................
1.78%
2.36%
1.93%
1.41%
1.32%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
29,942‌
$
30,950‌
$
29,050‌
$
37,710‌
$
60,358‌
Portfolio
turnover
rate
(h)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Expense
ratios
.............................................
N/A
N/A
N/A
0.81%
0.78%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
127
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Investor
A
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.63‌
$
9.47‌
$
9.63‌
$
9.64‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.17‌
0.22‌
0.18‌
0.14‌
0.13‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.10‌
0.17‌
(0.14‌)
0.02‌
(0.01‌)
Net
increase
from
investment
operations
............................
0.27‌
0.39‌
0.04‌
0.16‌
0.12‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.19‌)
(0.23‌)
(0.18‌)
(0.17‌)
(0.15‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.19‌)
(0.23‌)
(0.20‌)
(0.17‌)
(0.15‌)
Net
asset
value,
end
of
year
...................................
$
9.71‌
$
9.63‌
$
9.47‌
$
9.63‌
$
9.64‌
Total
Return
(d)
2.85%
4.23%
0.43%
—
—
Based
on
net
asset
value
......................................
2.85%
4.23%
(e)
0.43%
(e)
1.73%
1.29%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.............................................
0.76%
0.78%
0.88%
0.81%
0.83%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.66%
0.65%
0.74%
0.68%
0.81%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.65%
0.65%
0.66%
0.66%
0.79%
Net
investment
income
.......................................
1.77%
2.35%
1.94%
1.47%
1.32%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
1,412,985‌
$
1,318,473‌
$
1,267,494‌
$
1,309,023‌
$
875,788‌
Portfolio
turnover
rate
(g)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
128
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Investor
A1
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.64‌
$
9.48‌
$
9.64‌
$
9.65‌
$
9.68‌
Net
investment
income
(a)
.....................................
0.19‌
0.24‌
0.20‌
0.15‌
0.15‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.09‌
0.17‌
(0.14‌)
0.03‌
(0.01‌)
Net
increase
from
investment
operations
............................
0.28‌
0.41‌
0.06‌
0.18‌
0.14‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.21‌)
(0.25‌)
(0.20‌)
(0.19‌)
(0.17‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.21‌)
(0.25‌)
(0.22‌)
(0.19‌)
(0.17‌)
Net
asset
value,
end
of
year
...................................
$
9.71‌
$
9.64‌
$
9.48‌
$
9.64‌
$
9.65‌
Total
Return
(d)
2.90%
4.38%
0.59%
—
—
Based
on
net
asset
value
......................................
2.90%
4.38%
(e)
0.59%
(e)
1.88%
1.48%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.............................................
0.60%
0.59%
0.70%
0.66%
0.68%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.51%
0.50%
0.59%
0.53%
0.62%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.50%
0.50%
0.51%
0.51%
0.60%
Net
investment
income
.......................................
1.93%
2.51%
2.09%
1.59%
1.51%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
8,141‌
$
8,621‌
$
9,492‌
$
10,751‌
$
11,892‌
Portfolio
turnover
rate
(g)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
129
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
excludes
the
effects
of
any
sales
charges
and
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Investor
C
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.63‌
$
9.46‌
$
9.63‌
$
9.64‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.10‌
0.15‌
0.11‌
0.06‌
0.06‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.09‌
0.18‌
(0.15‌)
0.03‌
(0.01‌)
Net
increase
(decrease)
from
investment
operations
....................
0.19‌
0.33‌
(0.04‌)
0.09‌
0.05‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.12‌)
(0.16‌)
(0.11‌)
(0.10‌)
(0.08‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.12‌)
(0.16‌)
(0.13‌)
(0.10‌)
(0.08‌)
Net
asset
value,
end
of
year
...................................
$
9.70‌
$
9.63‌
$
9.46‌
$
9.63‌
$
9.64‌
Total
Return
(d)
1.98%
3.56%
(0.42)%
—
—
Based
on
net
asset
value
......................................
1.98%
3.56%
(e)
(0.42)%
(e)
0.97%
0.55%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.............................................
1.50%
1.52%
1.62%
1.58%
1.59%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
1.41%
1.40%
1.49%
1.43%
1.55%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
1.40%
1.40%
1.41%
1.42%
1.53%
Net
investment
income
.......................................
1.05%
1.61%
1.18%
0.67%
0.58%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
69,913‌
$
152,890‌
$
172,631‌
$
243,527‌
$
372,307‌
Portfolio
turnover
rate
(g)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2020
BlackRock
Annual
Report
to
Shareholders
130
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Class
K
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.63‌
$
9.46‌
$
9.62‌
$
9.64‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.20‌
0.25‌
0.22‌
0.15‌
0.16‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.09‌
0.18‌
(0.15‌)
0.03‌
—‌
Net
increase
from
investment
operations
............................
0.29‌
0.43‌
0.07‌
0.18‌
0.16‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.22‌)
(0.26‌)
(0.21‌)
(0.20‌)
(0.19‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.22‌)
(0.26‌)
(0.23‌)
(0.20‌)
(0.19‌)
Net
asset
value,
end
of
year
...................................
$
9.70‌
$
9.63‌
$
9.46‌
$
9.62‌
$
9.64‌
Total
Return
(d)
3.05%
4.65%
0.73%
—
—
Based
on
net
asset
value
......................................
3.05%
4.65%
(e)
0.73%
(e)
1.93%
1.69%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.............................................
0.38%
0.37%
0.46%
0.43%
0.44%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.36%
0.35%
0.44%
0.37%
0.41%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.35%
0.35%
0.35%
0.36%
0.40%
Net
investment
income
.......................................
2.07%
2.64%
2.27%
1.63%
1.71%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
557,997‌
$
512,940‌
$
258,340‌
$
161,006‌
$
930,769‌
Portfolio
turnover
rate
(g)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
131
Financial
Highlights
(a)
Based
on
average
shares
outstanding.
(b)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(c)
Amount
is
greater
than
$(0.005)
per
share.
(d)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(e)
Includes
payment
received
from
an
affiliate,
which
had
no
impact
on
the
Fund’s
total
return.
(f)
Excludes
expenses
incurred
indirectly
as
a
result
of
investments
in
underlying
funds
as
follows:
(g)
Includes
mortgage
dollar
roll
transactions
("MDRs").
Additional
information
regarding
portfolio
turnover
rate
is
as
follows:
See
notes
to
financial
statements.
BlackRock
Low
Duration
Bond
Portfolio
Class
R
Year
Ended
September
30,
2020
2019
2018
2017
2016
Net
asset
value,
beginning
of
year
..............................
$
9.63‌
$
9.47‌
$
9.63‌
$
9.64‌
$
9.67‌
Net
investment
income
(a)
.....................................
0.15‌
0.20‌
0.16‌
0.11‌
0.10‌
Net
realized
and
unrealized
gain
(loss)
...........................
0.09‌
0.17‌
(0.14‌)
0.03‌
—‌
Net
increase
from
investment
operations
............................
0.24‌
0.37‌
0.02‌
0.14‌
0.10‌
Distributions
(b)
–
–
–
–
–
From
net
investment
income
..................................
(0.17‌)
(0.21‌)
(0.16‌)
(0.15‌)
(0.13‌)
From
return
of
capital
.......................................
(0.00‌)
(c)
(0.00‌)
(c)
(0.02‌)
—‌
—‌
Total
distributions
...........................................
(0.17‌)
(0.21‌)
(0.18‌)
(0.15‌)
(0.13‌)
Net
asset
value,
end
of
year
...................................
$
9.70‌
$
9.63‌
$
9.47‌
$
9.63‌
$
9.64‌
Total
Return
(d)
2.49%
3.97%
0.18%
—
—
Based
on
net
asset
value
......................................
2.49%
3.97%
(e)
0.18%
(e)
1.47%
1.04%
Ratios
to
Average
Net
Assets
(f)
Total
expenses
.............................................
1.08%
1.18%
1.24%
1.25%
1.24%
Total
expenses
after
fees
waived
and/or
reimbursed
....................
0.91%
0.90%
0.99%
0.93%
1.06%
Total
expenses
after
fees
waived
and/or
reimbursed
and
excluding
interest
expense
0.90%
0.90%
0.91%
0.92%
1.04%
Net
investment
income
.......................................
1.54%
2.10%
1.69%
1.18%
1.07%
Supplemental
Data
Net
assets,
end
of
year
(000)
....................................
$
2,405‌
$
3,949‌
$
4,493‌
$
4,794‌
$
5,181‌
Portfolio
turnover
rate
(g)
.......................................
213%
182%
218%
292%
316%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Investments
in
underlying
funds
..................................
0.01%
0.01%
0.00%
0.00%
0.00%
Year
Ended
September
30,
2020
2019
2018
2017
2016
Portfolio
turnover
rate
(excluding
MDRs)
............................
170%
144%
169%
208%
246%
Notes
to
Financial
Statements
2020
BlackRock
Annual
Report
to
Shareholders
132
ORGANIZATION 
BlackRock
Funds
V (the
“Trust”)
is
registered
under
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”),
as
an
open-end
management
investment
company.
The
Trust
is
organized
as
a
Massachusetts
business trust.
The
following,
each
of
which
is
a
series
of
the
Trust,
are
referred
to
herein
collectively
as
the
“Funds”
or
individually
as
a
“Fund”:
Each
Fund
offers
multiple
classes
of
shares.
All
classes
of
shares
have
identical
voting,
dividend,
liquidation
and
other
rights
and
are
subject
to
the
same
terms
and
conditions,
except
that
certain
classes
bear
expenses
related
to
the
shareholder
servicing
and
distribution
of
such
shares.
Institutional,
Service
and
Class
K
shares
are
sold
only
to
certain
eligible
investors.
Service,
Investor
A,
Investor
A1,
Investor C
and
Class
R
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares,
and
Investor
C
and
Class R
Shares
also
bear
certain
expenses
related
to
the
distribution
of
such
shares.
Investor
A
and
Investor
C
Shares
are
generally
available
through
financial
intermediaries.
Investor
A1
Shares
are
only
available
for
dividend
and
capital
gain
reinvestment
by
existing
shareholders,
and
for
purchase
by
certain
employer-sponsored
retirement
plans.
Class
R
Shares
are
available
to
only
certain
employer-sponsored
retirement
plans.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures
(except
that
Investor
C
shareholders
may
vote
on
material
changes
to
the
Investor
A
Shares
distribution
and
service
plan).
On
February
24,
2020,
High
Yield
Bond’s
issued
and
outstanding
Investor
C1
Shares
and
Low
Duration
Bond’s
issued
and
outstanding
Investor
C2
and
Investor
C3
Shares
converted
into
Investor
A
Shares.
(a)
 Investor
A
Shares
may
be
subject
to
a
contingent
deferred
sales
charge
("CDSC")
for
certain
redemptions
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
(b)
 Investor
A1
Shares
are
subject
to
a
maximum
sales
charge
on
purchases
of
1.00%.
The
sales
charge
does
not
apply
to
dividend
and
capital
gain
reinvestments
by
existing
shareholders
and
new
purchases
for
certain
employer-sponsored
retirement
plans,
which
are
currently
the
only
investors
who
may
invest
in
Investor
A1
Shares.
(c)
 Investor
A1
Shares
may
be
subject
to
CDSC
for
certain
redemptions
where
no
initial
sales
charge
was
paid
at
the
time
of
purchase.
However,
the
CDSC
does
not
apply
to
redemptions
by
certain
employer-sponsored
retirement
plans
or
to
redemptions
of
shares
acquired
through
reinvestment
of
dividends
and
capital
gains
by
existing
shareholders.
(d)
 A
CDSC
of
1.00%
is
assessed
on
certain
redemptions
of
Investor
C
Shares
made
within
one
year
after
purchase.
(e)
Effective
November
23,
2020,
the
automatic
conversion
feature
will
be
modified
to
reduce
the
conversion
period
from
ten
years
to
eight
years.
The
Funds,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
"Manager") or
its
affiliates,
are
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.
Basis
of
Consolidation:
The
accompanying
consolidated
financial
statements
of
High
Yield
Bond
include
the
accounts
of
BLK
BR
HY
(Luxembourg)
Investments,
S.a.r.l
.
(the
“Taxable
Subsidiary”),
which
is
a
wholly-owned
taxable
subsidiary
of
High
Yield
Bond
which
holds
shares
of
private
Canadian
companies.
Gains
on
the
sale
of
such
shares
will
generally
not
be
subject
to
capital
gains
taxes
in
Canada.
Income
earned
on
the
investment
held
by
the
Taxable
Subsidiary
may
be
taxable
to
such
subsidiary
in
Luxembourg.
A
tax
provision,
if
any,
is
included
in
expenses
in
the
Consolidated
Statement
of
Operations
for
High
Yield
Bond.
An
income
tax
provision
for
income,
if
any,
is
shown
as
income
tax
in
the
Consolidated
Statement
of
Operations.
A
tax
provision
for
realized
and
unrealized
gains,
if
any,
is
included
as
a
reduction
of
realized
and/or
unrealized
gain
(loss)
in
the
Consolidated
Statement
of
Operations
for
High
Yield
Bond.
The
net
assets
of
the
Taxable
Subsidiary
as
of
period
end
were
$1,609,663,
which
is
0.01%
of
High
Yield
Bond’s
consolidated
net
assets.
Intercompany
accounts
and
transactions,
if
any,
have
been
eliminated.
The
Taxable
Subsidiary
is
subject
to
the
same
investment
policies
and
restrictions
that
apply
to
High
Yield
Bond. 
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.
Each
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
and
capital
gain
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Non-cash
dividends,
if
any,
are
recorded
on
the
ex-dividend
date
at
fair
value.
Dividends
from
foreign
securities
where
the
ex-dividend
date
may
have
passed
are
subsequently
recorded
when
the
Funds
are
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
daily
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.
For
convertible
securities,
premiums
attributable
to
the
debt
instrument
are
amortized,
but
premiums
attributable
to
the
conversion
feature
are
not
amortized.
Fund
Name
Herein
Referred
To
As
Diversification
Classification
BlackRock
Core
Bond
Portfolio
...............................................
Core
Bond
Diversified
BlackRock
High
Yield
Bond
Portfolio
............................................
High
Yield
Bond
Diversified
BlackRock
Low
Duration
Bond
Portfolio
..........................................
Low
Duration
Bond
Diversified
Share
Class
Initial
Sales
Charge
CDSC
Conversion
Privilege
Institutional,
Service,
Class
K
and
Class
R
Shares
........................
No
No
None
Investor
A
Shares
............................................
Yes
No
(a)
None
Investor
A1
Shares
...........................................
No
(b)
No
(c)
None
Investor
C
Shares
...........................................
No
Yes
(d)
To
Investor
A
Shares
after
approximately
10
years
(e)
Notes
to
Financial
Statements
(continued)
133
Notes
to
Financial
Statements
Foreign
Currency
Translation:
Each
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. 
Each
Fund
does
not
isolate
the
effect
of
fluctuations
in
foreign
exchange
rates
from
the
effect
of
fluctuations
in
the
market
prices
of
investments
for
financial
reporting
purposes.
Accordingly,
the
effects
of
changes
in
exchange
rates
on
investments
are
not
segregated
in
the
Statements
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.
Each
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.
Foreign
Taxes:
The
Funds
may
be
subject
to
foreign
taxes
(a
portion
of
which
may
be
reclaimable)
on
income,
stock
dividends,
capital
gains
on
investments,
or
certain
foreign
currency
transactions.
All
foreign
taxes
are
recorded
in
accordance
with
the
applicable
foreign
tax
regulations
and
rates
that
exist
in
the
foreign
jurisdictions
in
which
each
Fund
invests.
These
foreign
taxes,
if
any,
are
paid
by
each
Fund
and
are
reflected
in
its
Statements
of
Operations
as
follows:
foreign
taxes
withheld
at
source
are
presented
as
a
reduction
of
income,
foreign
taxes
on
securities
lending
income
are
presented
as
a
reduction
of
securities
lending
income,
foreign
taxes
on
stock
dividends
are
presented
as
“Foreign
taxes
withheld”,
and
foreign
taxes
on
capital
gains
from
sales
of
investments
and
foreign
taxes
on
foreign
currency
transactions
are
included
in
their
respective
net
realized
gain
(loss)
categories.
Foreign
taxes
payable
or
deferred
as
of
September
30,
2020
,
if
any,
are
disclosed
in
the
Statements
of
Assets
and
Liabilities.
Segregation
and
Collateralization:
In
cases
where a
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, a
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
Funds
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
portion
of
distributions,
if
any,
that
exceeds
a
fund's
current
and
accumulated
earnings
and
profits,
as
measured
on
a
tax
basis,
constitute
a
non-taxable
return
of
capital.
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
Trustees
of
the
Trust
(the
“Board”)
, 
the
trustees
who
are
not
“interested
persons”
of
the
Funds,
as
defined
in
the
1940
Act
(“Independent
Trustees
”),
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
Trustees
.
This
has
the
same
economic
effect
for
the
Independent 
Trustees
as
if
the
Independent 
Trustees
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
each
Fund,
as
applicable.
Deferred
compensation
liabilities,
if
any, are
included
in
the
Trustees’
and
Officer’s
fees
payable
in
the
Statements
of
Assets
and
Liabilities
and
will
remain
as
a
liability
of
the
Funds
until
such
amounts
are
distributed
in
accordance
with
the
Plan. 
Recent
Accounting
Standards:
The
Funds
have
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
Funds
have
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
Funds
applied
the
amendments
on
a
modified
retrospective
basis
beginning
with
the
fiscal
period
ended
September
30,
2020.
The
adjusted
cost
basis
of
securities
at September
30,
2019,
if
applicable,
are
as
follows:
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
Funds.
Indemnifications:
In
the
normal
course
of
business,
a
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
A
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
a
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to
a
Fund
or
its
classes
are
charged
to
that
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Funds
and
other
shared
expenses
prorated
to
the
Funds
are
allocated
daily
to
each
class
based
on
their
relative
net
assets
or
other
appropriate
methods.
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. 
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 The
Funds'
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
each
day
that
the
Fund
is
open
for
business
and,
for
financial
reporting
purposes,
as
of
the
report
date.
U.S.
GAAP
defines
fair
value
as
the
price
the
Funds
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Funds
determine
the
fair
values
of
their
financial
instruments
using
C
ore
Bond
.............................................................................................
$
3
,
743
,
772
,
2
7
6‌
High
Yield
Bond
.........................................................................................
16,950,
5
30
,3
58‌
Low
Duration
Bond
.......................................................................................
7
,842
,
491
,9
57‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
134
various
independent
dealers
or
pricing
services
under
policies
approved
by
the
Board.
If
a
security’s
market
price
is
not
readily
available
or
does
not
otherwise
accurately
represent
the
fair
value
of
the
security,
the
security
will
be
valued
in
accordance
with
a
policy
approved
by
the
Board
as
reflecting
fair
value.
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
each
Fund’s
assets
and
liabilities: 
Equity
investments
traded
on
a
recognized
securities
exchange
are
valued
at
that
day's official
closing
price,
as
applicable,
on
the
exchange
where
the
stock
is
primarily
traded.
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.  
Generally,
trading
in
foreign
instruments
is
substantially
completed
each
day
at
various
times
prior
to
the
close
of
trading
on
the
Funds'
listing
exchange.
Occasionally,
events
affecting
the
values
of
such
instruments
may
occur
between
the
foreign
market
close
and
the
close
of
trading
on
the Funds'
listing
exchange that
may
not
be
reflected
in
the
computation
of
the
Funds’
net
assets.
Each
business
day,
the
Funds
use
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
Funds'
listing
exchange,
which
follows
the
close
of
the
local
markets. 
Fixed-income investments
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),
market
data, 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.
Investments
in
open-end
U.S.
mutual
funds
(including
money
market
funds) are
valued
at
that
day's
published
NAV. 
High
Yield
Bond
values
its
investment
in
SL
Liquidity
Series,
LLC,
Money
Market
Series
(the
“Money
Market
Series”)
at
fair
value,
which
is
ordinarily
based
upon
its
pro
rata
ownership
in
the
underlying
fund’s
net
assets.
Futures
contracts
are valued
based
on
that
day’s
last
reported
settlement
price
on
the
exchange
where
the
contract
is
traded.
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.
Exchange-traded
equity
options
for
which
market
quotations
are
readily
available
will
be
valued
at
the
National
Best
Bid
and
Offer
quotes
(“NBBO”).
NBBO
represents
the
mean
of
the
bid
and
ask
prices
as
quoted
on
the
exchange
on
which
such
options
are
traded.
In
the
event
that
there
is
no
mean
price
available,
the
last
bid
(long
positions)
or
ask
(short
positions)
price
will
be
used.
If
no
bid
or
ask
price
is
available,
the
prior
day's
price
may
be
used.
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.
Swap
agreements
are
valued
utilizing
quotes
received
daily
by
independent pricing
services
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
investment,
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
each
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
(continued)
135
Notes
to
Financial
Statements
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.  
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
applicable
to
other
investments
held
by
a
Fund.
Typically,
the
most
recently
available
information
by
a
Private
Company
is
as
of
a
date
that
is
earlier
than
the
date
a
Fund
is
calculating
its
NAV.
This
factor
may
result
in
a
difference
between
the
value
of
the
investment
and
the
price
a
Fund
could
receive
upon
the
sale
of
the
investment. 
Fair
Value
Hierarchy:
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
These
inputs
to
valuation
techniques
are
categorized
into
a
fair
value
hierarchy
consisting
of
three
broad
levels
for
financial reporting purposes
as
follows: 
Level
1
—
Unadjusted
price
quotations
in
active
markets/exchanges
for
identical
assets
or
liabilities
that
each
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
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
that
may
not
have
a
secondary
market
and/or
may
have
a
limited
number
of
investors.
The
categorization
of
a
value
determined
for
financial
instruments
is
based
on
the
pricing
transparency
of
the financial
instruments
and
is
not
necessarily
an
indication
of
the
risks
associated
with
investing
in
those
securities.
As
of
September
30,
2020,
certain
investments
of
the
High
Yield
Bond
were
fair
valued
using
NAV per
share
as
no
quoted
market
value
is
available
and
therefore
have
been
excluded
from
the
fair
value
hierarchy. 
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. 
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
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.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
136
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.
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
Statements
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
pass-through
securities
(the
“Mortgage
Asset
s”)
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. 
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
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. 
Warrants:
Warrants
entitle
a
fund
to
purchase
a
specified
number
of
shares
of
common
stock
and
are
non-income
producing.
The
purchase
price
and
number
of
shares
are
subject
to
adjustment
under
certain
conditions
until
the
expiration
date
of
the
warrants,
if
any.
If
the
price
of
the
underlying
stock
does
not
rise
above
the
strike
price
before
the
warrant
expires,
the
warrant
generally
expires
without
any
value
and
a
fund
will
lose
any
amount
it
paid
for
the
warrant.
Thus,
investments
in
warrants
may
involve
more
Notes
to
Financial
Statements
(continued)
137
Notes
to
Financial
Statements
risk
than
investments
in
common
stock.
Warrants
may
trade
in
the
same
markets
as
their
underlying
stock;
however,
the
price
of
the
warrant
does
not
necessarily
move
with
the
price
of
the
underlying
stock. 
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,
certain
Funds
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
Statements
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
Statements
of
Assets
and
Liabilities
and
Statements
of
Operations.
As
of
period
end,
High
Yield
Bond
had
the
following
unfunded
floating
rate
loan
interests: 
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 its
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
Statements
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
Schedules
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
:
Certain
funds
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. 
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
Borrower
Par
Commitment
Amount
Value
Unrealized
Appreciation
(Depreciation)
Intelsat
Jackson
Holdings
SA,
Facility
Term
Loan
............................
$
22,059,419‌
$
22,059,419‌
$
22,408,620‌
$
349,201‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
138
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
Statements
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
Statements
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
September
30,
2020,
the
average
amount
of
reverse
repurchase
agreements
outstanding and
the
daily
weighted
average
interest
rate
for
the
Funds
were
as
follows:
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
Low
Duration
Bond’s
open
reverse
repurchase
agreements by
counterparty
which
are
subject
to
offset
under
an
MRA
on
a
net
basis:  
(a)
Collateral
with
a
value
of
$317,815,411
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.
(c)
Non-cash
collateral
with
a
value
of
$14,357,036
has
been
sold
and
is
pending
settlement
as
of
September
30,
2020.
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.
Securities
Lending:
 Certain
Funds
may
lend
their
securities
to
approved
borrowers,
such
as
brokers,
dealers
and
other
financial
institutions.
The
borrower
pledges
and
maintains
with
the
Funds
collateral
consisting
of
cash,
an
irrevocable
letter
of
credit
issued
by
a
bank,
or
securities
issued
or
guaranteed
by
the
U.S.
Government.
The
initial
collateral
received
by
each
Fund
is
required
to
have
a
value
of
at
least
102%
of
the
current
value
of
the
loaned
securities
for
securities
traded
on
U.S.
exchanges
and
a
value
of
at
least
105%
for
all
other
securities.
The
collateral
is
maintained
thereafter
at
a
value
equal
to
at
least
100%
of
the
current
market
value
of
the
securities
on
loan.
The
market
value
of
the
loaned
securities
is
determined
at
the
close
of
each
business
day
of the
Fund
and
any
additional
required
collateral
is
delivered
to
the
Fund,
or
excess
collateral returned
by
the
Fund,
on
the
next
business
day.
During
the
term
of
the
loan,
the
Funds
are
entitled
to
all
distributions
made
on
or in
respect
of
the
loaned
securities,
but
do
not
receive
interest
income
on
securities
received
as
collateral.
Loans
of
securities
are
terminable
at
any
time
and
the
borrower,
after
notice,
is
required
to
return
borrowed
securities
within
the
standard
time
period
for
settlement
of
securities
transactions.
The
market
value
of
any
securities
on
loan,
all
of
which
were
classified
as
investment
companies
in
the
Funds’
Schedules
of
Investments,
and
the
value
of
any
related
collateral
are
shown
separately
in
the
Statements
of
Assets
and
Liabilities
as
a
component
of
investments
at
value
–
unaffiliated,
and
collateral
on
securities
loaned
at
value,
respectively.
As
of
period
end,
any
securities
on
loan
were
collateralized
by
cash
and/or
U.S.
Government
obligations.
Cash
collateral
invested
by
the
securities
lending
agent,
BlackRock
Investment
Management,
LLC
(“BIM”),
if
any,
is
disclosed
in
the
Schedules
of
Investments.
Securities
lending
transactions
are
entered
into
by
the
Funds
under
Master
Securities
Lending
Agreements
(each,
an
“MSLA”),
which
provide
the
right,
in
the
event
of
default
(including
bankruptcy
or
insolvency),
for
the
non-defaulting
party
to
liquidate
the
collateral
and
calculate
a
net
exposure
to
the
defaulting
party
or
request
additional
collateral.
In
the
event
that
a
borrower
defaults,
the
Funds,
as
lender,
would
offset
the
market
value
of
the
collateral
received
against
the
market
value
of
the
securities
loaned.
When
the
value
of
the
collateral
is
greater
than
that
of
the
market
value
of
the
securities
loaned,
the
lender
is
left
with
a
net
amount
payable
to
the
defaulting
party.
However,
bankruptcy
or
insolvency
laws
of
a
particular
jurisdiction
may
impose
restrictions
on
or
prohibitions
against
such
a
right
of
offset
in
the
event
of
an
MSLA
counterparty’s
bankruptcy
High
Yield
Bond
Low
Duration
Bond
Average
Borrowings
..............................................................................
$
7,255,663‌
$
148,974,574‌
Daily
Weighted
Average
Interest
Rate
..................................................................
(1.04)%
0.29%
Counterparty
Reverse
Repurchase
Agreements
Fair
Value
of
Non-cash
Collateral
Pledged
Including
Accrued
Interest
(a)
Cash
Collateral
Pledged
Net
Amount
(b)
Bank
of
Montreal
................................................
$
(102,195,433)
$
102,195,433
$
–
$
–
Daiwa
Capital
Markets
America,
Inc.
...................................
(220,689,453)
212,796,486
–
(7,892,9
67)
(c)
$
(322,884,886)
$
314,991,919
$
–
$
(7,892,9
67)
Notes
to
Financial
Statements
(continued)
139
Notes
to
Financial
Statements
or
insolvency.
Under
the
MSLA,
absent
an
event
of
default,
the
borrower
can
resell
or
re-pledge
the
loaned
securities,
and
a
Fund
can
reinvest
cash
collateral
received
in
connection
with
loaned
securities.
Upon
an
event
of
default,
the
parties’
obligations
to
return
the
securities
or
collateral
to
the
other
party
are
extinguished,
and
the
parties
can
resell
or
re-pledge
the
loaned
securities
or
the
collateral
received
in
connection
with
the
loaned
securities
in
order
to
satisfy
the
defaulting
party’s
net
payment
obligation
for
all
transactions
under
the
MSLA.
The
defaulting
party
remains
liable
for
any
deficiency.
The
risks
of
securities
lending
include
the
risk
that
the
borrower
may
not
provide
additional
collateral
when
required
or
may
not
return
the
securities
when
due.
To
mitigate
these
risks,
the
Funds
benefit
from
a
borrower
default
indemnity
provided
by
BIM.
BIM’s
indemnity
allows
for
full
replacement
of
the
securities
loaned
to
the
extent
the
collateral
received
does
not
cover
the
value
on
the
securities
loaned
in
the
event
of
borrower
default.
Each
Fund
could
incur
a
loss
if
the
value
of
an
investment
purchased
with
cash
collateral
falls
below
the
market
value
of
loaned
securities
or
if
the
value
of
an
investment
purchased
with
cash
collateral
falls
below
the
value
of
the
original
cash
collateral
received.
Such
losses
are
borne
entirely
by
the
Funds.
Derivative
Financial
Instruments
The
Funds
engage
in
various
portfolio
investment
strategies
using
derivative
contracts
both
to
increase
the
returns
of
the
Funds
and/or
to
manage
their
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
Schedules
of
Investments.
These
contracts
may
be
transacted
on
an
exchange
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
Funds
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
Funds
are
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
Statements
of
Assets
and
Liabilities.
Securities
deposited
as
initial
margin
are
designated
in
the
Schedules
of
Investments
and
cash
deposited,
if
any, are
shown
as
cash
pledged
for
futures
contracts
in
the
Statements
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Funds
agree
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
Statements
of
Assets
and
Liabilities.
When
the
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statements
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).
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
Funds
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
Statements
of
Assets
and
Liabilities.
When
a
contract
is
closed,
a
realized
gain
or
loss
is
recorded
in
the
Statements
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 Statements
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
Statements
of
Assets
and
Liabilities.
Options:
Certain
Funds
purchase
and
write
call
and
put
options
to
increase
or
decrease
their
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.
As
of
period
end,
the
following
table
is
a
summary
of
the
High
Yield
Bond's
securities
on
loan
by
counterparty
which
are
subject
to
offset
under
an
MSLA:
Counterparty  
Securities
Loaned
at
Value
Cash
Collateral
Received
(a)
Net
Amount
(b)
BofA
Securities,
Inc.
....................................................
$
42,091,465‌
$
(42,091,465‌)
$
—‌
Credit
Suisse
Securities
(USA)
LLC
.........................................
6,216‌
(6,092‌)
124‌
JP
Morgan
Securities
LLC
................................................
112,248,108‌
(112,248,108‌)
—‌
Morgan
Stanley
&
Co.
LLC
...............................................
8,987,184‌
(8,987,184‌)
—‌
State
Street
Bank
&
Trust
Co.
.............................................
918,484‌
(910,643‌)
7,841‌
$
164,251,457‌
$
(164,243,492‌)
$
7,965‌
(a)
Collateral
received
in
excess
of
the
market
value
of
securities
on
loan
is
not
presented
in
this
table.
The
total
cash
collateral
received
by
the
High
Yield
Bond
is
disclosed
in
the
Fund's
Statement
of
Assets
and
Liabilities.
(b)
The
market
value
of
the
loaned
securities
is
determined
as
of
September
30,
2020.
Additional
collateral
is
delivered
to
the
Funds
on
the
next
business
day
in
accordance
with
the
MSLA.
The
net
amount
would
be
subject
to
the
borrower
default
indemnity
in
the
event
of
default
by
the
counterparty.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
140
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
Statements
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
Statements
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
Statements
of
Operations
to
the
extent
the
cost
of
the
closing
transaction
exceeds
the
premiums
received
or
paid.
When
the
Funds
write
a
call
option,
such
option
is
typically
“covered,”
meaning
that
they
hold
the
underlying
instrument
subject
to
being
called
by
the
option
counterparty.
When
the
Funds
write
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
Statements
of
Assets
and
Liabilities.
Swaptions
–
Certain
Funds
purchase
and
write
options
on
swaps
(“swaptions”)
primarily
to
preserve
a
return
or
spread
on
a
particular
investment
or
portion
of
the
Funds’
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
– Certain
Funds
purchase
and
write
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
– Certain
Funds
may
purchase
and
write
a
variety
of
options
with
non-standard
payout
structures
or
other
features
(“barrier
options”)
that
are
generally
traded
OTC.
The
Funds
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
purchasing
and
writing
options,
the
Funds
bear
the
risk
of
an
unfavorable
change
in
the
value
of
the
underlying
instrument
or
the
risk
that
they
may
not
be
able
to
enter
into
a
closing
transaction
due
to
an
illiquid
market.
Exercise
of
a
written
option
could
result
in
the
Funds
purchasing
or
selling
a
security
when they
otherwise
would
not,
or
at
a
price
different
from
the
current
market
value.
Swaps:
Swap
contracts
are
entered
into
to
manage
exposure
to
issuers,
markets
and
securities.
Such
contracts
are
agreements
between
the
Funds
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
Statements
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
Statements
of
Assets
and
Liabilities.
Payments
received
or
paid
are
recorded
in
the
Statements
of
Operations
as
realized
gains
or
losses,
respectively.
When
an
OTC
swap
is
terminated,
a
realized
gain
or
loss
is
recorded
in
the
Statements
of
Operations
equal
to
the
difference
between
the
proceeds
from
(or
cost
of)
the
closing
transaction
and
the
Funds’
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
Funds’
counterparty
on
the
swap
agreement
becomes
the
CCP.
The
Funds
are
required
to
interface
with
the
CCP
through
the
broker.
Upon
entering
into
a
centrally
cleared
swap,
the
Funds
are
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
Schedules
of
Investments
and
cash
deposited
is
shown
as
cash
pledged
for
centrally
cleared
swaps
in
the
Statements
of
Assets
and
Liabilities.
Amounts
pledged,
which
are
considered
restricted
cash,
are
included
in
cash
pledged
for
centrally
cleared
swaps
in
the
Statements
of
Assets
and
Liabilities.
Pursuant
to
the
contract,
the
Funds
agree
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
Statements
of
Assets
and
Liabilities.
Payments
received
from
(paid
to)
the
counterparty,
including
at
termination,
are
recorded
as
realized
gains
(losses)
in
the
Statements
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
Funds
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
Funds
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
Notes
to
Financial
Statements
(continued)
141
Notes
to
Financial
Statements
Funds
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.
Total
return
swaps
—
Total
return
swaps
are
entered
into
to
obtain
exposure
to
a
security
or
market
without
owning
such
security
or
investing
directly
in
such
market
or
to
exchange
the
risk/return
of
one
security
or
market
(e.g.,
fixed-income)
with
another
security
or
market
(e.g.,
equity
or
commodity
prices)
(equity
risk,
commodity
price
risk
and/or
interest
rate
risk).
Total
return
swaps
are
agreements
in
which
there
is
an
exchange
of
cash
flows
whereby
one
party
commits
to
make
payments
based
on
the
total
return
(distributions
plus
capital
gains/losses)
of
an
underlying
instrument,
or
basket
of
underlying
instruments,
in
exchange
for
fixed
or
floating
rate
interest
payments.
If
the
total
return
of
the
instrument(s)
or
index
underlying
the
transaction
exceeds
or
falls
short
of
the
offsetting
fixed
or
floating
interest
rate
obligation,
the
Funds
receive
payment
from
or
make
a
payment
to
the
counterparty.
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.
Forward
swaps
— Certain
Funds
enter
into
forward
interest
rate
swaps
and
forward
total
return
swaps.
In
a
forward
swap,
each
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.
Swap
transactions
involve,
to
varying
degrees,
elements
of
interest
rate,
credit
and
market
risk
in
excess
of
the
amounts
recognized
in
the
Statements
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 their
contractual
rights
and
to
secure
rights
that
will
help
them mitigate
their
counterparty
risk,
the
Funds
may
enter
into
an
International
Swaps
and
Derivatives
Association,
Inc.
Master
Agreement
(“ISDA
Master
Agreement”)
or
similar
agreement
with
their
counterparties.
An
ISDA
Master
Agreement
is
a
bilateral
agreement
between each
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,
each
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
Funds
and
the
counterparty.
Cash
collateral
that
has
been
pledged
to
cover
obligations
of
the
Funds
and
cash
collateral
received
from
the
counterparty,
if
any,
is
reported
separately
in
the
Statements
of
Assets
and
Liabilities
as
cash
pledged
as
collateral
and
cash
received
as
collateral,
respectively.
Non-cash
collateral
pledged
by
the
Funds,
if
any,
is
noted
in
the
Schedules
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
Funds.
Any
additional
required
collateral
is
delivered
to/pledged
by
the
Funds
on
the
next
business
day.
Typically,
the
counterparty
is
not
permitted
to
sell,
re-pledge
or
use
cash
and
non-cash
collateral
it
receives.
A
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
Funds
from their
counterparties
are
not
fully
collateralized,
they
bear
the
risk
of
loss
from
counterparty
non-performance.
Likewise,
to
the
extent
the
Funds have
delivered
collateral
to
a
counterparty
and
stand
ready
to
perform
under
the
terms
of
their
agreement
with
such
counterparty, they
bear
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
Funds
do
not
offset
derivative
assets
and
derivative
liabilities
that
are
subject
to
netting
arrangements,
if
any,
in
the
Statements
of
Assets
and
Liabilities.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES 
Investment
Advisory:
The
Trust,
on
behalf
of
the
Funds,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Funds'
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”)
,
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of each
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of each
Fund.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
142
For
such
services,
each
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
the
following
percentages
of
the
average
daily
value
of
each
Fund’s
net
assets:
The
Manager
provides
investment
management
and
other
services
to
the
Taxable
Subsidiary.
The
Manager
does
not
receive
separate
compensation
from
the
Taxable
Subsidiary
for
providing
investment
management
or
administrative
services.
However,
High
Yield
Bond
pays
the
Manager
based
on
the
Fund's
net
assets,
which
includes
the
assets
of
the
Taxable
Subsidiary.
With
respect
to
High
Yield
Bond
and
Low
Duration
Bond,
the
Manager
entered
into
a
sub-advisory
agreement,
effective
December
2,
2019,
with
BlackRock
International
Limited
(“BIL”)
(the
"Sub-Adviser"),
an
affiliate
of
the
Manager.
The
Manager
pays
BIL
for
services
it
provides
for
that
portion
of
each
Fund
for
which
BIL,
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
each
Fund
to
the
Manager.
With
respect
to
Core
Bond,
the
Manager
entered
into
a
sub-advisory
agreement
with
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
Core
Bond
for
which
BIL
and
BRS,
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
Core
Bond
to
the
Manager.
Service
and
Distribution
Fees:
The
Trust,
on behalf
of
the
Funds,
entered
into
a
Distribution
Agreement
and
a Distribution and
Service
Plan
with
BlackRock
Investments,
LLC
(“BRIL”),
an
affiliate
of
the
Manager.
Pursuant
to
the
Distribution
and
Service
Plan
and
in
accordance
with
Rule
12b-1
under
the
1940
Act,
each
Fund
pays
BRIL
ongoing
service
and
distribution
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
annual
rates
based
upon
the
average
daily
net
assets
of
the
relevant
share
class
of
each
Fund
as
follows:
(a)
On
February
24,
2020,
Investor
C1,
Investor
C2
and
Investor
C3
Shares
converted
into
Investor
A
Shares.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing
and
distribution
services to
the
Funds.
The
ongoing
service
and/or
distribution
fee compensates
BRIL
and
each
broker-dealer
for
providing
shareholder
servicing
and/or
distribution related
services
to
shareholders.
Core
Bond
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
Billion
..........................................................................................................
0.350‌%
$1
Billion
-
$2
Billion
......................................................................................................
0.340‌
$2
Billion
-
$3
Billion
.....................................................................................................
0.330‌
Greater
than
$3
Billion
....................................................................................................
0.320‌
High
Yield
Bond
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
Billion
..........................................................................................................
0.500‌%
$1
Billion
-
$2
Billion
......................................................................................................
0.450‌
$2
Billion
-
$3
Billion
.....................................................................................................
0.425‌
$3
Billion
-
$25
Billion
.....................................................................................................
0.400‌
$25
Billion
-
$30
Billion
....................................................................................................
0.375‌
Greater
than
$30
Billion
...................................................................................................
0.350‌
Low
Duration
Bond
Average
Daily
Net
Assets
Investment
Advisory
Fees
First
$1
Billion
..........................................................................................................
0.310‌%
$1
Billion
-
$3
Billion
......................................................................................................
0.290‌
$3
Billion
-
$5
Billion
.....................................................................................................
0.280‌
$5
Billion
-
$10
Billion
.....................................................................................................
0.270‌
Greater
than
$10
Billion
...................................................................................................
0.260‌
Service
Fees
Distribution
Fees
Service
..................................................................................................
0.25‌%
—‌%
Investor
A
.................................................................................................
0.25‌
—‌
Investor
A1
................................................................................................
0.10‌
—‌
Investor
C
.................................................................................................
0.25‌
0.75‌
Investor
C1
(a)
..............................................................................................
0.25‌
0.55‌
Investor
C2
(a)
..............................................................................................
0.10‌
0.30‌
Investor
C3
(a)
..............................................................................................
0.25‌
0.65‌
Class
R
..................................................................................................
0.25‌
0.25‌
Notes
to
Financial
Statements
(continued)
143
Notes
to
Financial
Statements
For
the year
ended
September
30,
2020,
the
following
table
shows
the
class
specific
service
and
distribution
fees
borne
directly
by
each
share
class
of
each
Fund:
Administration:
The
Trust,
on
behalf
of
the
Funds,
entered
into
an
Administration
Agreement
with
the
Manager
,
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
to
provide
administrative
services.
For
these
services,
the
Manager
receives
an
administration
fee
computed
daily
and
payable
monthly,
based
on
a
percentage
of
the
average
daily
net
assets
of
each
Fund.
The
administration
fee,
which
is
shown
as
administration
in
the
Statements
of
Operations,
is
paid
at
the
annual
rates
below.
In
addition,
the
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration —
class
specific
in
the
Statements
of
Operations,
at
an
annual
rate
of
0.02% of
the
average
daily
net
assets
of
each
respective
class.
For
the
year
ended
September
30,
2020, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
each
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Funds
with
sub-accounting,
recordkeeping,
sub-transfer
agency
and
other
administrative
services
with
respect
to
servicing
of
underlying
investor
accounts.
For
these
services,
these
entities
receive
an
asset-based
fee
or
an
annual
fee
per
shareholder
account,
which
will
vary
depending
on
share
class
and/or
net
assets.
For
the
year ended September
30,
2020,
the
Funds paid
the
following
amounts
to
affiliates
of
BlackRock
in
return
for
these
services,
which
are
included
in
transfer
agent
-
class
specific
in
the
Statements
of
Operations:
The
Manager
maintains
a
call
center
that
is
responsible
for
providing
certain
shareholder
services
to
the
Funds.
Shareholder
services
include
responding
to
inquiries
and
processing
purchases
and
sales
based
upon
instructions
from
shareholders.
For
the year
ended
September
30,
2020,
each
Fund
reimbursed
the
Manager
the
following
amounts
for
costs
incurred
in
running
the
call
center,
which
are
included
in
transfer
agent
—
class
specific
in
the
Statements
of
Operations:
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Service
....................................................................
$
103,629‌
$
310,297‌
$
74,702‌
Investor
A
...................................................................
1,157,031‌
3,184,835‌
3,404,396‌
Investor
A1
..................................................................
—‌
—‌
8,274‌
Investor
C
...................................................................
442,124‌
2,337,581‌
1,314,503‌
Investor
C1
..................................................................
—‌
4,162‌
—‌
Investor
C2
..................................................................
—‌
—‌
22‌
Investor
C3
..................................................................
—‌
—‌
1,651‌
Class
R
....................................................................
11,674‌
579,737‌
14,863‌
$
1,714,458‌
$
6,416,612‌
$
4,818,411‌
Average
Daily
Net
Assets
Administration
Fees
First
$500
Million
0.0425
%
$500
Million
-
$1
Billion
0.0400
$1
Billion
-
$2
Billion
0.0375
$2
Billion
-
$4
Billion
0.0350
$4
Billion
-
$13
Billion
0.0325
Greater
than
$13
Billion
0.0300
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Institutional
..................................................................
$
464,818‌
$
2,199,440‌
$
1,034,162‌
Service
....................................................................
8,284‌
24,801‌
5,972‌
Investor
A
...................................................................
92,496‌
254,587‌
272,148‌
Investor
A1
..................................................................
—‌
—‌
1,654‌
Investor
C
...................................................................
8,835‌
46,713‌
26,268‌
Investor
C1
..................................................................
—‌
104‌
—‌
Investor
C2
..................................................................
—‌
—‌
1‌
Investor
C3
..................................................................
—‌
—‌
37‌
Class
K
....................................................................
187,126‌
1,440,592‌
106,589‌
Class
R
....................................................................
466‌
23,171‌
594‌
$
762,025‌
$
3,989,408‌
$
1,447,425‌
Institutional
Service
Investor
A
Total
Core
Bond
..........................................................................
$
369,342‌
$
—‌
$
4,522‌
$
373,864‌
High
Yield
Bond
.......................................................................
316,621‌
30‌
1,370‌
318,021‌
Low
Duration
Bond
....................................................................
179,229‌
—‌
—‌
179,229‌
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Institutional
..................................................................
$
3,242‌
$
19,275‌
$
9,827‌
Service
....................................................................
—‌
192‌
211‌
Investor
A
...................................................................
5,041‌
29,369‌
5,270‌
Investor
A1
..................................................................
—‌
—‌
158‌
Investor
C
...................................................................
943‌
3,264‌
771‌
Investor
C1
..................................................................
—‌
10‌
—‌
Investor
C3
..................................................................
—‌
—‌
5‌
Class
K
....................................................................
1,372‌
—‌
894‌
Class
R
....................................................................
31‌
937‌
11‌
$
10,629‌
$
53,047‌
$
17,147‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
144
For
the
year ended
September
30,
2020,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
each
Fund:
Other
Fees:
For
the 
year
ended 
September
30,
2020
,
affiliates
earned
underwriting
discounts,
direct
commissions
and
dealer
concessions
on
sales
of each
Fund’s Investor
A
Shares as
follows:
For
the year
ended
September
30,
2020,
affiliates
received
CDSCs
as
follows:
Expense
Limitations,
Waivers,
Reimbursements,
and
Recoupments:
With
respect
to each
Fund,
the
Manager
contractually
agreed
to
waive
its
investment
advisory
fees
by
the
amount
of
investment
advisory
fees
each
Fund
pays
to
the
Manager
indirectly
through
its
investment
in
affiliated
money
market
funds
(the
“affiliated
money
market
fund
waiver”)
through
January
31,
2021
.
The
contractual
agreement
may
be
terminated upon
90
days’
notice
by
a
majority
of
the
Independent
Trustees
,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of a
Fund.
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.
Prior
to 
January
28,
2020
,
this
waiver
was
voluntary. These
amounts
are
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations.
For
the
year
ended
September
30,
2020,
the
amounts
waived
were
as
follows:
The
Manager
has
contractually
agreed
to
waive
its
investment
advisory
fee
with
respect
to
any
portion
of
each
Fund's
assets
invested
in
affiliated
equity
and
fixed-income
mutual
funds
and
affiliated
exchange-traded
funds
that
have
a
contractual
management
fee
through
January
31,
2021.
 The
contractual
agreement
may
be terminated
upon
90
days’
notice
by
a
majority
of
the
Independent
Trustees, or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of a
Fund.
These
amounts
are
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations.
For
the
year
ended
September
30,
2020,
the
amounts
waived
in
investment
advisory
fees
pursuant
to
these
arrangements
were
as
follows:
With
respect
to
each
Fund,
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 each
Fund’s
business
(“expense
limitation”).
The
expense
limitations
as
a
percentage
of
average
daily
net
assets are
as
follows:
(a)
On
February
24,
2020,
each
Fund's
issued
and
outstanding
Investor
C1,
Investor
C2
and
Investor
C3
Shares,
as
applicable,
converted
into
Investor
A
Shares.
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Institutional
..................................................................
$
2,781,900‌
$
12,512,736‌
$
4,018,512‌
Service
....................................................................
72,704‌
163,313‌
41,731‌
Investor
A
...................................................................
660,862‌
2,232,856‌
1,919,011‌
Investor
A1
..................................................................
—‌
—‌
10,510‌
Investor
C
...................................................................
68,049‌
311,622‌
174,772‌
Investor
C1
..................................................................
—‌
656‌
—‌
Investor
C2
..................................................................
—‌
—‌
32‌
Investor
C3
..................................................................
—‌
—‌
343‌
Class
K
....................................................................
41,159‌
375,683‌
52,604‌
Class
R
....................................................................
3,773‌
214,615‌
6,309‌
$
3,628,447‌
$
15,811,481‌
$
6,223,824‌
Core
Bond
.............................................................................................................
$
66,380‌
High
Yield
Bond
..........................................................................................................
93,824‌
Low
Duration
Bond
.......................................................................................................
91,299‌
Investor
A
Investor
C
Core
Bond
..................................................................................................
$
1
5
,
58
4‌
$
8,18
4‌
High
Yield
Bond
...............................................................................................
4
,987‌
36,4
1
2‌
Low
Duration
Bond
............................................................................................
83
,
767‌
13,888‌
Core
Bond
.................................................................................................................
$
237,796‌
High
Yield
Bond
..............................................................................................................
370,921‌
Low
Duration
Bond
...........................................................................................................
116,251‌
Core
Bond
.................................................................................................................
$
13,406‌
High
Yield
Bond
..............................................................................................................
1,773,524‌
Low
Duration
Bond
...........................................................................................................
453,107‌
Institutional
Service
Investor
A
Investor
A1
Investor
C
Investor
C1
(a)
Investor
C2
(a)
Investor
C3
(a)
Class
K
Class
R
Core
Bond
....
0.43‌%
0.68‌%
0.68‌%
N/A‌
1.43‌%
N/A‌
N/A‌
N/A‌
0.38‌%
0.93‌%
High
Yield
Bond
.
0.67‌
1.02‌
0.92‌
N/A‌
1.72‌
1.56‌%
N/A‌
N/A‌
0.58‌
1.28‌
Low
Duration
Bond
........
0.40‌
0.65‌
0.65‌
0.50‌%
1.40‌
N/A‌
0.80‌%
1.30‌%
0.35‌
0.90‌
Notes
to
Financial
Statements
(continued)
145
Notes
to
Financial
Statements
The
Manager
has
agreed
not
to
reduce
or
discontinue
these
contractual
expense
limitations
through
January
31,
2021,
unless
approved
by
the
Board,
including
a
majority
of
the Independent
Trustees,
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of the
Fund. For
the
year
ended
September
30,
2020,
the
amounts
included
in
fees
waived
and/or
reimbursed
by
the
Manager
in
the
Statements
of
Operations
were
as
follows:
These
amounts
waived
and/or
reimbursed
are
included
in administration
fees
waived
—
class
specific
and
transfer
agent
fees
waived
and/or
reimbursed
—
class
specific,
respectively,
in
the
Statements
of
Operations.
For
the
year ended
September
30,
2020,
class
specific
expense
waivers
and/or
reimbursements were
as
follows: 
With
respect
to
the
contractual
expense
limitation,
if
during
a
Fund’s
fiscal
year
the
operating
expenses
of
a
share
class,
that
at
any
time
during
the
prior
two
fiscal
years
received
a
waiver
and/or
reimbursement
from
the
Manager,
are
less
than
the
current
expense
limitation
for
that
share
class,
the
Manager
is
entitled
to
be
reimbursed
by
such
share
class
up
to
the
lesser
of:
(a)
the
amount
of
fees
waived
and/or
expenses
reimbursed
during
those
prior
two
fiscal
years
under
the
agreement
and
(b)
an
amount
not
to
exceed
either
the
current
expense
limitation
of
that
share
class
or
the
expense
limitation
of
the
share
class
in
effect
at
the
time
that
the
share
class
received
the
applicable
waiver
and/or
reimbursement,
provided
that:
(1)
each
Fund,
of
which
the
share
class
is
a
part,
has
more
than
$50
million
in
assets
for
the
fiscal
year,
and
(2)
the
Manager
or
an
affiliate
continues
to
serve
as
a
Fund’s
investment
adviser
or
administrator.
This
repayment
applies
only
to
the
contractual
expense
limitation
on
net
expenses
and
does
not
apply
to
the
contractual
investment
advisory
fee
waiver
described
above
or
any
voluntary
waivers
that
may
be
in
effect
from
time
to
time.
Effective
December
1,
2019,
the
repayment
arrangement
between
each
Fund
and
the
Manager
pursuant
to
which
such
Fund
may
be
required
to
repay
amounts
waived
and/or
reimbursed
under
each
Fund's
contractual
caps
on
net
expenses
was
terminated.
The
following
fund
level
and
class
specific
waivers
and/or
reimbursements
previously
recorded
by
the
Funds,
which
were
subject
to
recoupment
by
the
Manager,
expired
on
September
30,
2020:  
Securities
Lending:
The
U.S.
Securities
and
Exchange
Commission
(“SEC”)
has
issued
an
exemptive
order
which
permits
BlackRock
Investment
Management,
LLC
(“BIM”),
an
affiliate
of
the
Manager,
to
serve
as
securities
lending
agent
for
the
High
Yield
Bond,
subject
to
applicable
conditions.
As
securities
lending
agent,
BIM
bears
all
Core
Bond
...............................................................................................................
$
497,577‌
Low
Duration
Bond
.........................................................................................................
6,586‌
Administration
Fees
Waived
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Institutional
..................................................................
$
464,818‌
$
—‌
$
1,031,442‌
Service
....................................................................
8,284‌
—‌
5,971‌
Investor
A
...................................................................
92,496‌
166‌
272,126‌
Investor
A1
..................................................................
—‌
—‌
1,654‌
Investor
C
...................................................................
8,835‌
—‌
26,265‌
Investor
C2
..................................................................
—‌
—‌
1‌
Investor
C3
..................................................................
—‌
—‌
37‌
Class
K
....................................................................
186,193‌
—‌
63,459‌
Class
R
....................................................................
466‌
—‌
594‌
$
761,092‌
$
166‌
$
1,401,549‌
Transfer
Agent
Fees
Waived
and/or
Reimbursed
Core
Bond
Low
Duration
Bond
Institutional
....................................................................................
$
1,623,001‌
$
618,502‌
Service
......................................................................................
52,185‌
22,138‌
Investor
A
.....................................................................................
431,318‌
1,024,562‌
Investor
A1
....................................................................................
—‌
5,071‌
Investor
C
.....................................................................................
46,258‌
89,676‌
Investor
C2
....................................................................................
—‌
22‌
Investor
C3
....................................................................................
—‌
217‌
Class
K
......................................................................................
40,579‌
10,103‌
Class
R
......................................................................................
2,617‌
4,352‌
$
2,195,958‌
$
1,774,643‌
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Fund
Level
....................................................................................
$
1,878,880‌
$
—‌
$
15,449‌
Institutional
....................................................................................
2,374,828‌
—‌
2,750,123‌
Service
......................................................................................
154,997‌
—‌
72,075‌
Investor
A
.....................................................................................
1,397,120‌
589,793‌
3,362,837‌
Investor
A1
....................................................................................
—‌
—‌
18,436‌
Investor
C
.....................................................................................
154,022‌
—‌
424,850‌
Investor
C1
....................................................................................
—‌
495‌
—‌
Investor
C2
....................................................................................
—‌
—‌
1,572‌
Investor
C3
....................................................................................
—‌
—‌
7,361‌
Class
K
......................................................................................
330,891‌
—‌
75,468‌
Class
R
......................................................................................
11,058‌
—‌
23,202‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
146
operational
costs
directly
related
to
securities
lending.
High
Yield
Bond
is
responsible
for
expenses
in
connection
with
the
investment
of
cash
collateral
received
for
securities
on
loan
(the
“collateral
investment
expenses”).
The
cash
collateral
is
invested
in
a
private
investment
company,
SL
Liquidity
Series,
LLC
("Money
Market
Series"), managed
by
the
Manager
or
its
affiliates.
However,
BIM
has
agreed
to
cap
the
collateral
investment
expenses
of
the Money
Market
Series to
an
annual
rate
of
0.04%.
The
investment
adviser
to
the
Money
Market
Series
will
not
charge
any
advisory
fees
with
respect
to
shares
purchased
by
the
High
Yield
Bond.
The
Money
Market
Series
may,
under
certain
circumstances,
impose
a
liquidity
fee
of
up
to
2%
of
the
value
withdrawn
or
temporarily
restrict
withdrawals
for
up
to
10
business
days
during
a
90
day
period,
in
the
event
that
the
private
investment
company’s
weekly
liquid
assets
fall
below
certain
thresholds. The
Money
Market
Series
seeks
current
income
consistent
with
maintaining
liquidity
and
preserving
capital.
Although
the
Money
Market
Series
is
not
registered
under
the
1940
Act,
its
investments
may
follow
the
parameters
of
investments
by
a
money
market
fund
that
is
subject
to
Rule
2a-7
under
the
1940
Act.
Securities
lending
income
is
equal
to
the
total
of
income
earned
from
the
reinvestment
of
cash
collateral,
net
of
fees
and
other
payments
to
and
from
borrowers
of
securities,
and
less
the
collateral
investment
expenses.
High
Yield
Bond
retains
a
portion
of
securities
lending
income
and
remits
a
remaining
portion
to
BIM
as
compensation
for
its
services
as
securities
lending
agent.
Pursuant
to
the
current
securities
lending
agreement,
High
Yield
Bond
retains
82%
of
securities
lending
income
(which
excludes
collateral
investment
expenses),
and
this
amount
retained
can
never
be
less
than
70%
of
the
total
of
securities
lending
income
plus
the
collateral
investment
expenses.
In
addition,
commencing
the
business
day
following
the
date
that
the
aggregate
securities
lending
income
earned
across
the
BlackRock
Fixed-Income
Complex
in
a
calendar
year
exceeds
a
specified
threshold,
High
Yield
Bond,
pursuant
to
the
securities
lending
agreement,
will
retain
for
the
remainder
of
that
calendar
year
securities
lending
income
in
an
amount
equal
to
85%
of
securities
lending
income
(which
excludes
collateral
investment
expenses),
and
this
amount
retained
can
never
be
less
than
70%
of
the
total
of
securities
lending
income
plus
the
collateral
investment
expenses.
Prior
to
January
1,
2020,
High
Yield
Bond
retained
73.5%
of
securities
lending
income
(which
excluded
collateral
investment
expenses)
and
the
amount
retained
could
never
be
less
than
70%
of
the
total
of
securities
lending
income
plus
the
collateral
investment
expenses.
In
addition,
commencing
the
business
day
following
the
date
that
the
aggregate
securities
lending
income
earned
across
the
BlackRock
Fixed-Income
Complex
in
a
calendar
year
exceeded
a
specified
threshold,
High
Yield
Bond
would
retain
for
the
remainder
of
that
calendar
year
80%
of
securities
lending
income
(which
excluded
collateral
investment
expenses),
and
the
amount
retained
could
never
be
less
than
70%
of
the
total
of
securities
lending
income
plus
the
collateral
investment
expenses.
The
share
of
securities
lending
income
earned
by High
Yield
Bond
is
shown
as
securities
lending
income
—
affiliated
—
net
in
the Consolidated
Statement
of
Operations.
For
the year
ended
September
30,
2020, High
Yield
Bond
paid
BIM
$152,190
for
securities
lending
agent
services. 
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
SEC,
each
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
each
Fund’s
investment
policies
and
restrictions.
Each
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
September
30,
2020,
the
Funds
did
not
participate
in
the
Interfund
Lending
Program.
Trustees
and
Officers: 
Certain
trustees
and/or
officers
of
the Trust are directors and/or
officers
of BlackRock
or
its
affiliates.
The
Funds
reimburse
the
Manager
for
a
portion
of
the
compensation
paid
to
the 
Funds'
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statements
of
Operations. 
Other
Transactions:
The
Funds
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 trustees.
For
the
year
ended
September
30,
2020,
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 
Sales 
Net
Realized
Gain
(Loss)
Core
Bond
.......................................................................
$
5,689,909‌
$
5,145,712‌
$
(57,157‌)
High
Yield
Bond
....................................................................
1,155,798,370‌
77,032,736‌
2,758,487‌
Low
Duration
Bond
.................................................................
16,709,896‌
21,120,272‌
(255,026‌)
Notes
to
Financial
Statements
(continued)
147
Notes
to
Financial
Statements
PURCHASES
AND
SALES 
For
the
year ended
September
30,
2020,
purchases
and
sales
of
investments,
including
paydowns,
mortgage
dollar
rolls
and
excluding
short-term
investments,
were
as
follows:
For
the
year ended
September
30,
2020,
purchases
and
sales
related
to
mortgage
dollar
rolls
were
as
follows:
INCOME
TAX
INFORMATION 
It
is
each
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,
except
with
respect
to
any
taxes
related
to
the
Taxable
Subsidiaries. 
Each 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
each
Fund’s
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
years
after
they
are
filed.
The
statutes
of
limitations
on
each
Fund’s
state
and
local
tax
returns
may
remain
open
for
an
additional
year
depending
upon
the
jurisdiction. 
Management
has
analyzed
tax
laws
and
regulations
and
their
application
to
the Funds
as
of
September
30,
2020,
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
Funds’
financial
statements.
The
tax
character
of
distributions
paid
was
as
follows: 
As
of
period
end,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:  
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Purchases
Non-U.S.
Government
Securities
.........................................................
$
27,349,443,368‌
$
30,279,279,623‌
$
12,291,213,127‌
U.S.
Government
Securities
.............................................................
950,845,609‌
—‌
2,899,006,758‌
$
28,300,288,977‌
$
30,279,279,623‌
$
15,190,219,885‌
Sales
Non-U.S.
Government
Securities
.........................................................
$
27,063,465,205‌
$
23,209,283
,40
4‌
$
12,896,157,899‌
U.S.
Government
Securities
.............................................................
910,485,246‌
—‌
3,106,426,615‌
$
27,973,950,451‌
$
23,209,283
,40
4‌
$
16,002,584,514‌
Core
Bond
Low
Duration
Bond
Purchases
..........................................................................................
$
8,231,338,065‌
$
3,033,897,036‌
Sales
..............................................................................................
8,232,426,048‌
3,033,973,070‌
Ordinary
Income
Return
of
Capital
Total
Core
Bond
09/30/20
............................................................................
$
79,984,069‌
$
—‌
$
79,984,069‌
09/30/19
............................................................................
92,340,733‌
—‌
92,340,733‌
High
Yield
Bond
09/30/20
............................................................................
1,112,080,586‌
—‌
1,112,080,586‌
09/30/19
............................................................................
935,424,039‌
—‌
935,424,039‌
Low
Duration
Bond
09/30/20
............................................................................
156,790,079‌
422,312‌
157,212,391‌
09/30/19
............................................................................
170,514,300‌
3,196,913‌
173,711,213‌
Undistributed
Ordinary
Income
Undistributed
Long-Term
Capital
Gains
Non-expiring
Capital
Loss
Carryforwards
(a)
Net
Unrealized
Gains
(Losses)
(b)
Total
Core
Bond
..................................................
$
86,605,407‌
$
60,342,267‌
$
—‌
$
134,790,014‌
$
281,737,688‌
High
Yield
Bond
...............................................
—‌
—‌
(1,024,676,023‌)
480,413,144‌
(544,262,879‌)
Low
Duration
Bond
............................................
—‌
—‌
(72,355,381‌)
87,793,337‌
15,437,956‌
(a)
Amounts
available
to
offset
future
realized
capital
gains.
(b)
The
differences
between
book-basis
and
tax-basis
net
unrealized
gains
(losses)
were
attributable
primarily
to
the
tax
deferral
of
losses
on
wash
sales
and
straddles,
the
deferral
of
compensation
to
trustees,
the
timing
and
recognition
of
partnership
income,
the
realization
for
tax
purposes
of
unrealized
gains/losses
on
certain
futures,
options,
and
foreign
currency
contracts,
unrealized
gain
on
stock
of
passive
foreign
investment
companies,
the
classification
of
investments
and
the
accounting
for
swap
agreements.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
148
During
the
year
ended September
30,
2020,
the
Funds
listed
below
utilized
the
following
amounts
of
their
respective
capital
loss
carryforward: 
As
of
September
30,
2020, gross
unrealized
appreciation
and
depreciation
for
investments
and
derivatives
based
on
cost
for
U.S.
federal
income
tax
purposes
were
as
follows:
BANK
BORROWINGS 
The
Trust,
on
behalf
of
the
Funds,
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
Funds
may
borrow
to
fund
shareholder
redemptions.
Excluding
commitments
designated
for
certain
individual
funds,
the
Participating
Funds,
including
the
Funds,
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
2021
unless
extended
or
renewed.
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
September
30,
2020,
the
Funds
did
not
borrow
under
the
credit
agreement.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business, certain
Funds
invest
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
each
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.
Local,
regional
or
global
events
such
as
war,
acts
of
terrorism,
the
spread
of
infectious
illness
or
other
public
health
issues,
recessions,
or
other
events
could
have
a
significant
impact
on
the
Funds
and their
investments.
Each
Fund’s
prospectus
provides
details
of
the
risks
to
which
each
Fund
is
subject. 
The
Funds
may
be
exposed
to
additional
risks
when
reinvesting
cash
collateral
in
money
market
funds
that
do
not
seek
to
maintain
a
stable
NAV
per
share
of
$1.00,
which
may
be
subject
to
redemption
gates
or
liquidity
fees
under
certain
circumstances.
Market
Risk:
Each
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
each
Fund
to
reinvest
in
lower
yielding
securities. Each
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
each
Fund’s
portfolio
will
decline
if
each
Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
each
Fund
portfolio’s
current
earnings
rate.
Municipal
securities
are
subject
to
the
risk
that
litigation,
legislation
or
other
political
events,
local
business
or
economic
conditions,
credit
rating
downgrades,
or
the
bankruptcy
of
the
issuer
could
have
a
significant
effect
on
an
issuer's
ability
to
make
payments
of
principal
and/or
interest
or
otherwise
affect
the
value
of
such
securities.
Municipal
securities
can
be
significantly
affected
by
political
or
economic
changes,
including
changes
made
in
the
law
after
issuance
of
the
securities,
as
well
as
uncertainties
in
the
municipal
market
related
to,
taxation,
legislative
changes
or
the
rights
of
municipal
security
holders,
including
in
connection
with
an
issuer
insolvency.
Municipal
securities
backed
by
current
or
anticipated
revenues
from
a
specific
project
or
specific
assets
can
be
negatively
affected
by
the
discontinuance
of
the
tax
benefits
supporting
the
project
or
assets
or
the
inability
to
collect
revenues
for
the
project
or
from
the
assets.
Municipal
securities
may
be
less
liquid
than
taxable
bonds,
and
there
may
be
less
publicly
available
information
on
the
financial
condition
of
municipal
security
issuers
than
for
issuers
of
other
securities.
An
outbreak
of
respiratory
disease
caused
by
a
novel
coronavirus
has
developed
into
a
global
pandemic
and
has
resulted
in
closing
borders,
quarantines,
disruptions
to
supply
chains
and
customer
activity,
as
well
as
general
concern
and
uncertainty.
The
impact
of
this
pandemic,
and
other
global
health
crises
that
may
arise
in
the
future,
could
affect
the
economies
of
many
nations,
individual
companies
and
the
market
in
general
in
ways
that
cannot
necessarily
be
foreseen
at
the
present
time.
This
pandemic
may
result
in
substantial
market
volatility
and
may
adversely
impact
the
prices
and
liquidity
of
a
fund's
investments.
The duration
of
this
pandemic
and
its
effects
cannot
be
determined
with
certainty.
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. A
Fund
may
invest
in
illiquid
investments.
An
illiquid
investment
is
any
investment
that a
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. A
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
each
Fund’s
NAV
to
experience
significant
Core
Bond
Low
Duration
Bond
Amount
utilized
.................................................................................................
$
21,019,302‌
$
3,424,138‌
Core
Bond
High
Yield
Bond
Low
Duration
Bond
Tax
cost
.................................................................................
$
4,735,705,204‌
$
24,525,117,109‌
$
7,568,785,963‌
Gross
unrealized
appreciation
..................................................................
$
169,073,744‌
$
982,594,812‌
$
169,679,057‌
Gross
unrealized
depreciation
..................................................................
(29,218,360‌)
(467,531,096‌)
(56,438,359‌)
Net
unrealized
appreciation
(depreciation)
..........................................................
$
139,855,384‌
$
515,063,716‌
$
113,240,698‌
Notes
to
Financial
Statements
(continued)
149
Notes
to
Financial
Statements
increases
or
decreases
over
short
periods
of
time.
If
there
is
a
general
decline
in
the
securities
and
other
markets,
the
NAV
of a
Fund
may
lose
value,
regardless
of
the
individual
results
of
the
securities
and
other
instruments
in
which a
Fund
invests. 
The
price a
Fund
could
receive
upon
the
sale
of
any
particular
portfolio
investment
may
differ
from a
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 a
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 a
Fund,
and a
Fund
could
realize
a
greater
than
expected
loss
or
lesser
than
expected
gain
upon
the
sale
of
the
investment.
A
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
Funds
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,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Funds
manage
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
Funds
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Funds’
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statements
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Funds. 
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.
For
OTC
options
purchased,
each
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
Funds
should
the
counterparty
fail
to
perform
under
the
contracts.
Options
written
by
the
Funds
do
not
typically
give
rise
to
counterparty
credit
risk,
as
options
written
generally
obligate
the
Funds,
and
not
the
counterparty,
to
perform.
The
Funds
may
be
exposed
to
counterparty
credit
risk
with
respect
to
options
written
to
the
extent
each
Fund
deposits
collateral
with
its
counterparty
to
a
written
option. 
With
exchange-traded
options
purchased
and
futures
and
centrally
cleared
swaps,
there
is
less
counterparty
credit
risk
to
the
Funds
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, a
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
Funds. 
Concentration
Risk:
 A
diversified
portfolio,
where
this
is appropriate
and
consistent
with
a
fund's
objectives,
minimizes
the
risk
that
a
price
change
of
a
particular
investment
will
have
a
material
impact
on
the
NAV
of
a
fund.
The
investment
concentrations
within certain
Fund's
portfolios
are
disclosed
in
its Schedule
of
Investments.
Certain
Funds
invest
a
significant
portion
of
their
assets
in fixed-income securities and/or use
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
Funds
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates. 
Certain
Funds
invest
a
significant
portion
of their
assets
in
high
yield
securities.
High
yield
securities
that
are
rated
below
investment-grade
(commonly
referred
to
as
“junk
bonds”)
or
are
unrated
may
be
deemed
speculative,
involve
greater
levels
of
risk
than
higher-rated
securities
of
similar
maturity
and
are
more
likely
to
default.
High
yield
securities
may
be
issued
by
less
creditworthy
issuers,
and
issuers
of
high
yield
securities
may
be
unable
to
meet
their
interest
or
principal
payment
obligations.
High
yield
securities
are
subject
to
extreme
price
fluctuations,
may
be
less
liquid
than
higher
rated
fixed-income
securities,
even
under
normal
economic
conditions,
and
frequently
have
redemption
features.
Certain Funds
invest
a
significant
portion
of their
assets
in
securities
backed
by
commercial
or
residential
mortgage
loans
or
in
issuers
that
hold
mortgage
and
other
asset-
backed
securities.
When
a
Fund
concentrates
its
investments
in
this
manner,
it
assumes
a
greater
risk
of
prepayment
or
payment
extension
by
securities
issuers.
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.
Investment
percentages
in
these
securities
are
presented
in
the
Schedules
of
Investments.
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a
phase
out
of
the
London
Interbank
Offered
Rate
(“LIBOR”)
by
the
end
of
2021,
and
it
is
expected
that
LIBOR
will
cease
to
be
published
after
that
time.
The
Funds
may
be
exposed
to
financial
instruments
tied
to
LIBOR
to
determine
payment
obligations,
financing
terms,
hedging
strategies
or
investment
value.
The
transition
process
away
from
LIBOR
might
lead
to
increased
volatility
and
illiquidity
in
markets
for,
and
reduce
the
effectiveness
of
new
hedges
placed
against,
instruments
whose
terms
currently
include
LIBOR.
The
ultimate
effect
of
the
LIBOR
transition
process
on
the
Funds
is
uncertain.
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
150
CAPITAL
SHARE
TRANSACTIONS 
Transactions
in
capital
shares
for
each
class
were
as
follows:
d
Year
Ended
09/30/20
Year
Ended
09/30/19
Shares
Amount
Shares
Amount
Core
Bond
Institutional
Shares
sold
134,404,550‌
$
1,359,648,885‌
58,954,554‌
$
562,957,286‌
Shares
issued
in
reinvestment
of
distributions
........................
4,496,191‌
45,651,411‌
5,225,917‌
49,860,865‌
Shares
redeemed
(83,877,161‌)
(850,407,309‌)
(59,622,838‌)
(568,545,951‌)
        Net
increase
55,023,580‌
$
554,892,987‌
4,557,633‌
$
44,272,200‌
Service
Shares
sold
1,009,098‌
$
10,274,747‌
747,668‌
$
7,155,368‌
Shares
issued
in
reinvestment
of
distributions
........................
77,519‌
785,902‌
118,602‌
1,128,634‌
Shares
redeemed
(877,089‌)
(8,840,329‌)
(2,150,888‌)
(20,174,665‌)
        Net
increase
(decrease)
209,528‌
$
2,220,320‌
(1,284,618‌)
$
(11,890,663‌)
Investor
A
Shares
sold
and
automatic
conversion
of
shares
22,589,308‌
$
229,295,262‌
13,311,539‌
$
126,824,365‌
Shares
issued
in
reinvestment
of
distributions
........................
830,302‌
8,433,724‌
1,256,238‌
12,004,462‌
Shares
redeemed
(21,994,722‌)
(219,559,631‌)
(11,149,529‌)
(105,604,612‌)
        Net
increase
1,424,888‌
$
18,169,355‌
3,418,248‌
$
33,224,215‌
Investor
C
Shares
sold
2,244,234‌
$
22,701,181‌
1,179,700‌
$
11,240,172‌
Shares
issued
in
reinvestment
of
distributions
........................
46,395‌
472,173‌
103,735‌
984,358‌
Shares
redeemed
and
automatic
conversion
of
shares
(3,811,378‌)
(38,725,941‌)
(2,903,618‌)
(27,358,066‌)
        Net
decrease
(1,520,749‌)
$
(15,552,587‌)
(1,620,183‌)
$
(15,133,536‌)
Class
K
Shares
sold
28,911,044‌
$
293,522,415‌
16,217,659‌
$
155,733,531‌
Shares
issued
in
reinvestment
of
distributions
........................
1,955,306‌
19,903,710‌
2,295,745‌
21,971,817‌
Shares
redeemed
(15,896,382‌)
(161,100,856‌)
(10,702,500‌)
(101,646,792‌)
        Net
increase
14,969,968‌
$
152,325,269‌
7,810,904‌
$
76,058,556‌
Class
R
Shares
sold
40,768‌
$
412,171‌
48,863‌
$
463,854‌
Shares
issued
in
reinvestment
of
distributions
........................
3,879‌
39,263‌
7,247‌
69,144‌
Shares
redeemed
(124,001‌)
(1,255,399‌)
(98,276‌)
(928,414‌)
        Net
decrease
(79,354‌)
$
(803,965‌)
(42,166‌)
$
(395,416‌)
Total
Net
Increase
70,027,861‌
$
711,251,379‌
12,839,818‌
$
126,135,356‌
High
Yield
Bond
Institutional
Shares
sold
1,362,364,926‌
$
9,885,297,950‌
1,013,381,817‌
$
7,603,463,797‌
Shares
issued
in
reinvestment
of
distributions
........................
74,815,528‌
553,158,606‌
69,159,001‌
519,713,900‌
Shares
redeemed
(1,256,575,349‌)
(9,220,251,586‌)
(951,987,667‌)
(7,118,339,335‌)
        Net
increase
180,605,105‌
$
1,218,204,970‌
130,553,151‌
$
1,004,838,362‌
Service
Shares
sold
15,027,160‌
$
112,040,919‌
26,925,349‌
$
202,663,801‌
Shares
issued
in
reinvestment
of
distributions
........................
877,553‌
6,511,172‌
1,283,402‌
9,634,956‌
Shares
redeemed
(19,136,696‌)
(143,776,526‌)
(31,038,176‌)
(233,953,036‌)
        Net
decrease
(3,231,983‌)
$
(25,224,435‌)
(2,829,425‌)
$
(21,654,279‌)
Investor
A
Shares
sold
and
automatic
conversion
of
shares
80,997,936‌
$
594,145,280‌
89,269,598‌
$
668,379,422‌
Shares
issued
in
reinvestment
of
distributions
........................
8,263,622‌
61,014,132‌
8,705,424‌
65,323,251‌
Shares
redeemed
(87,500,067‌)
(643,971,138‌)
(97,803,313‌)
(732,231,738‌)
        Net
increase
1,761,491‌
$
11,188,274‌
171,709‌
$
1,470,935‌
Investor
C
Shares
sold
7,765,572‌
$
56,928,089‌
5,808,760‌
$
43,856,756‌
Shares
issued
in
reinvestment
of
distributions
........................
1,317,314‌
9,741,496‌
1,690,358‌
12,686,090‌
Shares
redeemed
and
automatic
conversion
of
shares
(18,096,014‌)
(133,120,822‌)
(16,231,675‌)
(121,962,508‌)
        Net
decrease
(9,013,128‌)
$
(66,451,237‌)
(8,732,557‌)
$
(65,419,662‌)
Notes
to
Financial
Statements
(continued)
151
Notes
to
Financial
Statements
d
Year
Ended
09/30/20
Year
Ended
09/30/19
Shares
Amount
Shares
Amount
Investor
C1
(a)
Shares
sold
3,706‌
$
28,586‌
14,297‌
$
106,914‌
Shares
issued
in
reinvestment
of
distributions
........................
2,744‌
21,204‌
15,555‌
116,637‌
Shares
redeemed
and
automatic
conversion
of
shares
(180,597‌)
(1,401,444‌)
(1,080,338‌)
(8,132,021‌)
        Net
decrease
(174,147‌)
$
(1,351,654‌)
(1,050,486‌)
$
(7,908,470‌)
Class
K
Shares
sold
1,326,886,474‌
$
9,271,564,944‌
296,089,454‌
$
2,234,441,701‌
Shares
issued
in
reinvestment
of
distributions
........................
51,411,454‌
378,762,871‌
29,816,561‌
224,062,721‌
Shares
redeemed
(438,883,456‌)
(3,175,032,394‌)
(283,213,492‌)
(2,120,629,398‌)
        Net
increase
939,414,472‌
$
6,475,295,421‌
42,692,523‌
$
337,875,024‌
Class
R
Shares
sold
3,595,177‌
$
26,543,807‌
3,653,480‌
$
27,476,499‌
Shares
issued
in
reinvestment
of
distributions
........................
794,604‌
5,868,673‌
893,735‌
6,703,839‌
Shares
redeemed
(5,883,470‌)
(42,957,093‌)
(4,938,196‌)
(36,987,751‌)
        Net
decrease
(1,493,689‌)
$
(10,544,613‌)
(390,981‌)
$
(2,807,413‌)
Total
Net
Increase
1,107,868,121‌
$
7,601,116,726‌
160,413,934‌
$
1,246,394,497‌
Low
Duration
Bond
Institutional
Shares
sold
252,306,828‌
$
2,424,543,808‌
255,637,955‌
$
2,438,891,645‌
Shares
issued
in
reinvestment
of
distributions
........................
11,606,960‌
111,604,816‌
12,760,621‌
121,859,736‌
Shares
redeemed
(267,833,212‌)
(2,561,179,821‌)
(162,007,772‌)
(1,541,598,872‌)
        Net
increase
(decrease)
(3,919,424‌)
$
(25,031,197‌)
106,390,804‌
$
1,019,152,509‌
Service
Shares
sold
783,706‌
$
7,542,255‌
1,362,027‌
$
12,939,297‌
Shares
issued
in
reinvestment
of
distributions
........................
61,469‌
590,499‌
82,838‌
790,447‌
Shares
redeemed
(972,470‌)
(9,276,519‌)
(1,300,321‌)
(12,422,888‌)
        Net
increase
(decrease)
(127,295‌)
$
(1,143,765‌)
144,544‌
$
1,306,856‌
Investor
A
Shares
sold
and
automatic
conversion
of
shares
74,849,323‌
$
719,875,315‌
40,678,905‌
$
387,195,143‌
Shares
issued
in
reinvestment
of
distributions
........................
2,704,195‌
25,989,312‌
3,279,253‌
31,288,962‌
Shares
redeemed
(68,813,099‌)
(661,832,086‌)
(40,973,256‌)
(390,594,187‌)
        Net
increase
8,740,419‌
$
84,032,541‌
2,984,902‌
$
27,889,918‌
Investor
A1
Shares
sold
826‌
$
7,971‌
13,578‌
$
129,648‌
Shares
issued
in
reinvestment
of
distributions
........................
13,881‌
133,510‌
18,921‌
180,655‌
Shares
redeemed
(70,658‌)
(679,577‌)
(140,020‌)
(1,342,934‌)
        Net
decrease
(55,951‌)
$
(538,096‌)
(107,521‌)
$
(1,032,631‌)
Investor
C
Shares
sold
3,388,045‌
$
32,498,708‌
3,973,118‌
$
37,653,643‌
Shares
issued
in
reinvestment
of
distributions
........................
143,791‌
1,378,936‌
253,439‌
2,416,147‌
Shares
redeemed
and
automatic
conversion
of
shares
(12,201,122‌)
(117,518,178‌)
(6,590,562‌)
(62,681,598‌)
        Net
decrease
(8,669,286‌)
$
(83,640,534‌)
(2,364,005‌)
$
(22,611,808‌)
Investor
C2
(a)
Shares
sold
—‌
$
—‌
—‌
$
—‌
Shares
issued
in
reinvestment
of
distributions
........................
8‌
81‌
353‌
3,354‌
Shares
redeemed
and
automatic
conversion
of
shares
(1,365‌)
(13,216‌)
(59,579‌)
(563,951‌)
        Net
decrease
(1,357‌)
$
(13,135‌)
(59,226‌)
$
(560,597‌)
Investor
C3
(a)
Shares
sold
268‌
$
2,582‌
18,194‌
$
172,285‌
Shares
issued
in
reinvestment
of
distributions
........................
223‌
2,150‌
1,370‌
13,039‌
Shares
redeemed
and
automatic
conversion
of
shares
(48,538‌)
(469,472‌)
(148,549‌)
(1,404,724‌)
        Net
decrease
(48,047‌)
$
(464,740‌)
(128,985‌)
$
(1,219,400‌)
Class
K
Shares
sold
34,069,034‌
$
326,711,070‌
43,738,804‌
$
417,163,489‌
Shares
issued
in
reinvestment
of
distributions
........................
1,246,422‌
11,974,110‌
1,074,665‌
10,261,330‌
Shares
redeemed
(31,060,287‌)
(298,001,286‌)
(18,840,509‌)
(179,698,612‌)
        Net
increase
4,255,169‌
$
40,683,894‌
25,972,960‌
$
247,726,207‌
Notes
to
Financial
Statements
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
152
(a)
On
February
24,
2020,
each
Fund's
issued
and
outstanding
Investor
C1,
Investor
C2
and
Investor
C3
Shares,
as
applicable,
converted
into
Investor
A
Shares.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Funds
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.
d
Year
Ended
09/30/20
Year
Ended
09/30/19
Shares
Amount
Shares
Amount
Class
R
Shares
sold
153,881‌
$
1,478,313‌
233,380‌
$
2,232,441‌
Shares
issued
in
reinvestment
of
distributions
........................
5,343‌
51,307‌
8,783‌
83,723‌
Shares
redeemed
(321,305‌)
(3,087,278‌)
(306,773‌)
(2,923,327‌)
        Net
decrease
(162,081‌)
$
(1,557,658‌)
(64,610‌)
$
(607,163‌)
Total
Net
Increase
12,147‌
$
12,327,310‌
132,768,863‌
$
1,270,043,891‌
Report
of
Independent
Registered
Public
Accounting
Firm
153
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Shareholders
of
BlackRock
Core
Bond
Portfolio,
BlackRock
High
Yield
Bond
Portfolio
and
BlackRock
Low
Duration
Bond
Portfolio
and
the
Board
of
Trustees
of
BlackRock
Funds
V:
Opinion
on
the
Financial
Statements
and
Financial
Highlights
We
have
audited
the
accompanying
statements
of
assets
and
liabilities
of
BlackRock
Core
Bond
Portfolio
and
BlackRock
Low
Duration
Bond
Portfolio
of
BlackRock
Funds
V,
including
the
schedules
of
investments,
as
of
September
30,
2020,
the
related
statements
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.
We
have
also
audited
the
accompanying
consolidated
statement
of
assets
and
liabilities
of
BlackRock
High
Yield
Bond
Portfolio
of
BlackRock
Funds
V
(collectively
with
BlackRock
Core
Bond
Portfolio
and
BlackRock
Low
Duration
Bond
Portfolio,
the
“Funds”),
including
the
consolidated
schedule
of
investments,
as
of
September
30,
2020,
the
related
consolidated
statement
of
operations
for
the
year
then
ended,
the
consolidated
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
the
consolidated
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
Funds
as
of
September
30,
2020,
and
the
results
of
their
operations
for
the
year
then
ended,
the
changes
in
their
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
Funds’
management.
Our
responsibility
is
to
express
an
opinion
on
the
Funds’
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
Funds
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
Funds
are
not
required
to
have,
nor
were
we
engaged
to
perform,
an
audit
of
their
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
Funds’
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
September
30,
2020,
by
correspondence
with
the
custodian
and
brokers
and
agent
banks;
when
replies
were
not
received
from
brokers
or
agent
banks,
we
performed
other
auditing
procedures.
We
believe
that
our
audits
provide
a
reasonable
basis
for
our
opinion.
Deloitte
&
Touche
LLP
Boston,
Massachusetts
November
20,
2020
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
1992.
Important
Tax
Information
(unaudited)
2020
BlackRock
Annual
Report
to
Shareholders
154
For
corporate
shareholders,
the
percentage
of
ordinary
income
distributions
paid
during
the
fiscal
year
ended
September
30,
2020
that
qualified
for
the
dividends-received
deduction
were
as
follows:
The
following
maximum
amounts
are
hereby
designated
as
qualified
dividend
income
for
individuals
for
the
fiscal
year
ended
September
30,
2020:
For
the
fiscal
year
ended
September
30,
2020,
the
Funds
hereby
designate
the
following
maximum
amounts
allowable
as
interest-related
dividends
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations:
The
Funds
hereby
designate
the
following
amount
of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
year
ended
September
30,
2020:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attribute
to
federal
obligations
is
exempt
from
state
income
tax.
Shareholders
are
advised
to
check
with
their
tax
advisers
to
determine
if
any
portion
of
the
dividends
received
is
exempt
from
state
income
tax.
Fund
Dividend-Received
Deduction
BlackRock
High
Yield
Bond
Portfolio
........................................................................................
1.76
%
Fund
Qualified
Dividend
Income
BlackRock
Core
Bond
Portfolio
.........................................................................................
$
1,375,242
BlackRock
High
Yield
Bond
Portfolio
......................................................................................
28,688,273
Fund
Interest-Related
Dividends
BlackRock
Core
Bond
Portfolio
.........................................................................................
$
63,590,858
BlackRock
High
Yield
Bond
Portfolio
......................................................................................
819,623,070
BlackRock
Low
Duration
Bond
Portfolio
....................................................................................
124,046,704
Fund
Federal
Obligation
Interest
BlackRock
Core
Bond
Portfolio
.........................................................................................
$
7,532,818
BlackRock
Low
Duration
Bond
Portfolio
....................................................................................
4,326,464
Disclosure
of
Investment
Advisory
Agreement
155
Disclosure
of
Investment
Advisory
Agreement
The
Board
of
Trustees
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Funds
V
(the
“Trust”)
met
on
April
16,
2020
(the
“April
Meeting”)
and
May
20-21,
2020
(the
“May
Meeting”)
to
consider
the
approval
of
the
investment
advisory
agreement
(the
“Advisory
Agreement”
or
the
“Agreement”)
between
the
Trust,
on
behalf
of
BlackRock
Core
Bond
Portfolio
(the
“Core
Bond
Portfolio”),
BlackRock
High
Yield
Bond
Portfolio
(the
“High
Yield
Bond
Portfolio”)
and
BlackRock
Low
Duration
Bond
Portfolio
(the
“Low
Duration
Bond
Portfolio”
and
together
with
the
Core
Bond
Portfolio
and
the
High
Yield
Bond
Portfolio,
the
“Funds”
and
each,
a
“Fund,”),
and
BlackRock
Advisors,
LLC
(the
“Manager”
or
“BlackRock”),
each
Fund’s
investment
advisor.
Activities
and
Composition
of
the
Board
On
the
date
of
the
May
Meeting,
the
Board
consisted
of
ten
individuals,
eight
of
whom
were
not
“interested
persons”
of
the
Trust
as
defined
in
the
Investment
Company
Act
of
1940,
as
amended
(the
“1940
Act”)
(the
“Independent
Board
Members”).
The
Board
Members
are
responsible
for
the
oversight
of
the
operations
of
each
Fund
and
perform
the
various
duties
imposed
on
the
directors
of
investment
companies
by
the
1940
Act.
The
Independent
Board
Members
have
retained
independent
legal
counsel
to
assist
them
in
connection
with
their
duties.
The
Co-Chairs
of
the
Board
are
Independent
Board
Members.
The
Board
has
established
five
standing
committees:
an
Audit
Committee,
a
Governance
and
Nominating
Committee,
a
Compliance
Committee,
a
Performance
Oversight
Committee
and
an
Executive
Committee,
each
of
which
is
chaired
by
an
Independent
Board
Member
and
composed
of
Independent
Board
Members
(except
for
the
Executive
Committee,
which
also
has
one
interested
Board
Member).
The
Agreement
Consistent
with
the
requirements
of
the
1940
Act,
the
Board
considers
the
continuation
of
the
Agreement
on
an
annual
basis.
The
Board
has
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
and
additional
in-person
and
telephonic
meetings
throughout
the
year,
as
needed.
While
the
Board
also
has
a
fifth
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
Agreement,
the
Board’s
consideration
entails
a
year-long
deliberative
process
whereby
the
Board
and
its
committees
assess
BlackRock’s
services
to
each
Fund.
In
particular,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
each
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
each
Fund’s
service
providers;
risk
management
and
oversight;
and
legal,
regulatory
and
compliance
services.
Throughout
the
year,
including
during
the
contract
renewal
process,
the
Independent
Board
Members
were
advised
by
independent
legal
counsel,
and
met
with
independent
legal
counsel
in
various
executive
sessions
outside
of
the
presence
of
BlackRock’s
management.
During
the
year,
the
Board,
acting
directly
and
through
its
committees,
considers
information
that
is
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreement,
including
the
services
and
support
provided
by
BlackRock
to
each
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
This
additional
information
is
discussed
further
in
the
section
titled
“Board
Considerations
in
Approving
the
Agreement.”
Among
the
matters
the
Board
considered
were:
(a)
investment
performance
for
one-year,
three-year,
five-year,
and/or
since
inception
periods,
as
applicable,
against
peer
funds,
applicable
benchmarks,
and
other
performance
metrics,
as
applicable,
as
well
as
BlackRock
senior
management’s
and
portfolio
managers’
analyses
of
the
reasons
for
any
outperformance
or
underperformance
relative
to
its
peers,
benchmarks,
and
other
performance
metrics,
as
applicable;
(b)
fees,
including
advisory,
administration,
if
applicable,
and
other
amounts
paid
to
BlackRock
and
its
affiliates
by
each
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
each
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
each
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
each
Fund’s
adherence
to
applicable
compliance
policies
and
procedures;
(f)
the
nature,
character
and
scope
of
non-investment
management
services
provided
by
BlackRock
and
its
affiliates
and
the
estimated
cost
of
such
services;
(g)
BlackRock’s
and
other
service
providers’
internal
controls
and
risk
and
compliance
oversight
mechanisms;
(h)
BlackRock’s
implementation
of
the
proxy
voting
policies
approved
by
the
Board;
(i)
execution
quality
of
portfolio
transactions;
(j)
BlackRock’s
implementation
of
each
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
for
products
with
similar
investment
mandates
across
the
open-end
fund,
exchange-traded
fund
(“ETF”),
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable,
and
the
similarities
and
differences
between
these
products
and
the
services
provided
as
compared
to
each
Fund;
(l)
BlackRock’s
compensation
methodology
for
its
investment
professionals
and
the
incentives
and
accountability
it
creates,
along
with
investment
professionals’
investments
in
the
fund(s)
they
manage;
and
(m)
periodic
updates
on
BlackRock’s
business.
Board
Considerations
in
Approving
the
Agreement
The
Approval
Process:
Prior
to
the
April
Meeting,
the
Board
requested
and
received
materials
specifically
relating
to
the
Agreement.
The
Independent
Board
Members
are
continuously
engaged
in
a
process
with
their
independent
legal
counsel
and
BlackRock
to
review
the
nature
and
scope
of
the
information
provided
to
the
Board
to
better
assist
its
deliberations.
The
materials
provided
in
connection
with
the
April
Meeting
included,
among
other
things:
(a)
information
independently
compiled
and
prepared
by
Broadridge
Financial
Solutions,
Inc.
(“Broadridge”),
based
on
either
a
Lipper
classification
or
Morningstar
category,
regarding
each
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
each
Fund
as
compared
with
a
peer
group
of
funds
(“Performance
Peers”);
(b)
information
on
the
composition
of
the
Expense
Peers
and
Performance
Peers
and
a
description
of
Broadridge’s
methodology;
(c)
information
on
the
estimated
profits
realized
by
BlackRock
and
its
affiliates
pursuant
to
the
Agreement
and
a
discussion
of
fall-out
benefits
to
BlackRock
and
its
affiliates;
(d)
a
general
analysis
provided
by
BlackRock
concerning
investment
management
fees
received
in
connection
with
other
types
of
investment
products,
such
as
institutional
accounts,
sub-advised
mutual
funds,
ETFs,
closed-end
funds,
open-end
funds,
and
separately
managed
accounts,
under
similar
investment
mandates,
as
well
as
the
performance
of
such
other
products,
as
applicable;
(e)
a
review
of
non-management
fees;
(f)
the
existence,
impact
and
sharing
of
potential
economies
of
scale,
if
any,
with
each
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
each
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
each
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock’s
and
each
Fund’s
operations.
At
the
April
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Agreement.
As
a
result
of
the
discussions
that
occurred
during
the
April
Meeting,
and
as
a
culmination
of
the
Board’s
year-long
deliberative
process,
the
Board
presented
BlackRock
with
questions
and
requests
for
additional
information.
BlackRock
responded
to
these
questions
and
requests
with
additional
written
information
in
advance
of
the
May
Meeting.
Topics
covered
included:
(a)
the
methodology
for
measuring
estimated
fund
profitability;
(b)
economies
of
scale;
(c)
fund
expenses
and
potential
fee
waivers;
and
(d)
differences
in
services
provided
and
management
fees
between
open-end
funds
and
other
product
channels.
Disclosure
of
Investment
Advisory
Agreement
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
156
At
the
May
Meeting,
the
Board
concluded
its
assessment
of,
among
other
things:
(a)
the
nature,
extent
and
quality
of
the
services
provided
by
BlackRock;
(b)
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers
and
to
other
metrics,
as
applicable;
(c)
the
advisory
fee
and
the
estimated
cost
of
the
services
and
estimated
profits
realized
by
BlackRock
and
its
affiliates
from
their
relationship
with
each
Fund;
(d)
each
Fund’s
fees
and
expenses
compared
to
its
Expense
Peers;
(e)
the
existence
and
sharing
of
potential
economies
of
scale;
(f)
any
fall-out
benefits
to
BlackRock
and
its
affiliates
as
a
result
of
BlackRock’s
relationship
with
each
Fund;
and
(g)
other
factors
deemed
relevant
by
the
Board
Members.
The
Board
also
considered
other
matters
it
deemed
important
to
the
approval
process,
such
as
other
payments
made
to
BlackRock
or
its
affiliates
relating
to
securities
lending
and
cash
management,
and
BlackRock’s
services
related
to
the
valuation
and
pricing
of
Fund
portfolio
holdings.
The
Board
noted
the
willingness
of
BlackRock’s
personnel
to
engage
in
open,
candid
discussions
with
the
Board.
The
Board
did
not
identify
any
particular
information
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
considered.
A.
Nature,
Extent
and
Quality
of
the
Services
Provided
by
BlackRock:
The
Board
,
including
the
Independent
Board
Members,
reviewed
the
nature,
extent
and
quality
of
services
provided
by
BlackRock,
including
the
investment
advisory
services,
and
the
resulting
performance
of
each
Fund.
Throughout
the
year,
the
Board
compared
Fund
performance
to
the
performance
of
a
comparable
group
of
mutual
funds,
relevant
benchmarks,
and
performance
metrics,
as
applicable.
The
Board
met
with
BlackRock’s
senior
management
personnel
responsible
for
investment
activities,
including
the
senior
investment
officers.
The
Board
also
reviewed
the
materials
provided
by
each
Fund’s
portfolio
management
team
discussing
each
Fund’s
performance,
investment
strategies
and
outlook.
The
Board
considered,
among
other
factors,
with
respect
to
BlackRock:
the
number,
education
and
experience
of
investment
personnel
generally
and
each
Fund’s
portfolio
management
team;
research
capabilities;
investments
by
portfolio
managers
in
the
funds
they
manage;
portfolio
trading
capabilities;
use
of
technology;
commitment
to
compliance;
credit
analysis
capabilities;
risk
analysis
and
oversight
capabilities;
and
the
approach
to
training
and
retaining
portfolio
managers
and
other
research,
advisory
and
management
personnel.
The
Board
also
considered
BlackRock’s
overall
risk
management
program,
including
the
continued
efforts
of
BlackRock
and
its
affiliates
to
address
cybersecurity
risks
and
the
role
of
BlackRock’s
Risk
&
Quantitative
Analysis
Group.
The
Board
engaged
in
a
review
of
BlackRock’s
compensation
structure
with
respect
to
each
Fund’s
portfolio
management
team
and
BlackRock’s
ability
to
attract
and
retain
high-quality
talent
and
create
performance
incentives.
In
addition
to
investment
advisory
services,
the
Board
considered
the
nature
and
quality
of
the
administrative
and
other
non-investment
advisory
services
provided
to
each
Fund.
BlackRock
and
its
affiliates
provide
each
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
each
Fund
by
third-parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
each
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
each
Fund
with
administrative
services
including,
among
others:
(i)
responsibility
for
disclosure
documents,
such
as
the
prospectus,
the
summary
prospectus
(as
applicable),
the
statement
of
additional
information
and
periodic
shareholder
reports;
(ii)
oversight
of
daily
accounting
and
pricing;
(iii)
responsibility
for
periodic
filings
with
regulators;
(iv)
overseeing
and
coordinating
the
activities
of
third-party
service
providers
including,
among
others,
each
Fund’s
custodian,
fund
accountant,
transfer
agent,
and
auditor;
(v)
organizing
Board
meetings
and
preparing
the
materials
for
such
Board
meetings;
(vi)
providing
legal
and
compliance
support;
(vii)
furnishing
analytical
and
other
support
to
assist
the
Board
in
its
consideration
of
strategic
issues
such
as
the
merger,
consolidation
or
repurposing
of
certain
open-end
funds;
and
(viii)
performing
or
managing
administrative
functions
necessary
for
the
operation
of
each
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
each
Fund’s
distribution
partners,
and
shareholder
call
center
and
other
services.
The
Board
reviewed
the
structure
and
duties
of
BlackRock’s
fund
administration,
shareholder
services,
and
legal
&
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
B.
The
Investment
Performance
of
each
Fund
and
BlackRock
:
The
Board,
including
the
Independent
Board
Members,
also
reviewed
and
considered
the
performance
history
of
each
Fund.
In
preparation
for
the
April
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
each
Fund’s
performance
as
of
December
31,
2019,
as
compared
to
its
Performance
Peers.
Broadridge
ranks
funds
in
quartiles,
ranging
from
first
to
fourth,
where
first
is
the
most
desirable
quartile
position
and
fourth
is
the
least
desirable.
In
connection
with
its
review,
the
Board
received
and
reviewed
information
regarding
the
investment
performance
of
each
Fund
as
compared
to
its
Performance
Peers.
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
each
Fund
throughout
the
year.
In
evaluating
performance,
the
Board
focused
particular
attention
on
funds
with
less
favorable
performance
records.
The
Board
also
noted
that
while
it
found
the
data
provided
by
Broadridge
generally
useful,
it
recognized
the
limitations
of
such
data,
including
in
particular,
that
notable
differences
may
exist
between
a
fund
and
its
Performance
Peers
(for
example,
the
investment
objectives
and
strategies).
Further,
the
Board
recognized
that
the
performance
data
reflects
a
snapshot
of
a
period
as
of
a
particular
date
and
that
selecting
a
different
performance
period
could
produce
significantly
different
results.
The
Board
also
acknowledged
that
long-term
performance
could
be
impacted
by
even
one
period
of
significant
outperformance
or
underperformance,
and
that
a
single
investment
theme
could
have
the
ability
to
disproportionately
affect
long-term
performance.
The
Board
noted
that
for
the
one-,
three-
and
five-year
periods
reported,
the
Core
Bond
Portfolio
ranked
in
the
first,
first
and
second
quartiles,
respectively,
against
its
Performance
Peers.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
the
High
Yield
Bond
Portfolio
ranked
in
the
first
quartile
against
its
Performance
Peers.
The
Board
noted
that
for
each
of
the
one-,
three-
and
five-year
periods
reported,
the
Low
Duration
Bond
Portfolio
ranked
in
the
second
quartile
against
its
Performance
Peers.
C.
Consideration
of
the
Advisory/Management
Fees
and
the
Estimated
Cost
of
the
Services
and
Estimated
Profits
Realized
by
BlackRock
and
its
Affiliates
from
their
Relationship
with
each
Fund:
The
Board,
including
the
Independent
Board
Members,
reviewed
each
Fund’s
contractual
management
fee
rate
compared
with
those
of
its
Expense
Peers.
The
contractual
management
fee
rate
represents
a
combination
of
the
advisory
fee
and
any
administrative
fees,
before
taking
into
account
any
reimbursements
or
fee
waivers.
The
Board
also
compared
each
Fund’s
total
expense
ratio,
as
well
as
its
actual
management
fee
rate,
to
those
of
its
Expense
Peers.
The
total
expense
ratio
represents
a
fund’s
total
net
operating
expenses,
including
any
12b-1
or
non-12b-1
service
fees.
The
total
expense
ratio
gives
effect
to
any
expense
reimbursements
or
fee
waivers,
and
the
actual
management
fee
rate
gives
effect
to
any
management
fee
reimbursements
or
waivers.
The
Board
considered
the
services
provided
and
the
fees
charged
by
BlackRock
and
its
affiliates
to
other
types
of
clients
with
similar
investment
mandates,
as
applicable,
including
institutional
accounts
and
sub-advised
mutual
funds
(including
mutual
funds
sponsored
by
third
parties).
Disclosure
of
Investment
Advisory
Agreement
(continued)
157
Disclosure
of
Investment
Advisory
Agreement
The
Board
received
and
reviewed
statements
relating
to
BlackRock’s
financial
condition.
The
Board
reviewed
BlackRock’s
profitability
methodology
and
was
also
provided
with
an
estimated
profitability
analysis
that
detailed
the
revenues
earned
and
the
expenses
incurred
by
BlackRock
for
services
provided
to
each
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
each
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2019
compared
to
available
aggregate
estimated
profitability
data
provided
for
the
prior
two
years.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
certain
other
U.S.
fund
complexes
managed
by
the
Manager
and/or
its
affiliates.
The
Board
reviewed
BlackRock’s
assumptions
and
methodology
of
allocating
expenses
in
the
estimated
profitability
analysis,
noting
the
inherent
limitations
in
allocating
costs
among
various
advisory
products.
The
Board
recognized
that
profitability
may
be
affected
by
numerous
factors
including,
among
other
things,
fee
waivers
and
expense
reimbursements
by
the
Manager,
the
types
of
funds
managed,
precision
of
expense
allocations
and
business
mix.
The
Board
thus
recognized
that
calculating
and
comparing
profitability
at
the
individual
fund
level
is
difficult.
The
Board
noted
that,
in
general,
individual
fund
or
product
line
profitability
of
other
advisors
is
not
publicly
available.
The
Board
reviewed
BlackRock’s
overall
operating
margin,
in
general,
compared
to
that
of
certain
other
publicly
traded
asset
management
firms.
The
Board
considered
the
differences
between
BlackRock
and
these
other
firms,
including
the
contribution
of
technology
at
BlackRock,
BlackRock’s
expense
management,
and
the
relative
product
mix.
The
Board
considered
whether
BlackRock
has
the
financial
resources
necessary
to
attract
and
retain
high
quality
investment
management
personnel
to
perform
its
obligations
under
the
Agreement
and
to
continue
to
provide
the
high
quality
of
services
that
is
expected
by
the
Board.
The
Board
further
considered
factors
including
but
not
limited
to
BlackRock’s
commitment
of
time,
assumption
of
risk,
and
liability
profile
in
servicing
each
Fund,
including
in
contrast
to
what
is
required
of
BlackRock
with
respect
to
other
products
with
similar
investment
mandates
across
the
open-end
fund,
ETF,
closed-end
fund,
sub-advised
mutual
fund,
separately
managed
account,
collective
investment
trust,
and
institutional
separate
account
product
channels,
as
applicable.
The
Board
noted
that
the
Core
Bond
Portfolio’s
contractual
management
fee
rate
ranked
in
the
third
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
ranked
in
the
second
and
third
quartiles,
respectively,
relative
to
the
Core
Bond
Portfolio’s
Expense
Peers.
The
Board
also
noted
that
the
Core
Bond
Portfolio
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Core
Bond
Portfolio
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Core
Bond
Portfolio
were
to
decrease,
the
Core
Bond
Portfolio
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Core
Bond
Portfolio’s
total
expenses
as
a
percentage
of
the
Core
Bond
Portfolio’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
the
High
Yield
Bond
Portfolio’s
contractual
management
fee
rate
ranked
in
the
first
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile,
relative
to
the
High
Yield
Bond
Portfolio’s
Expense
Peers.
The
Board
also
noted
that
the
High
Yield
Bond
Portfolio
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
High
Yield
Bond
Portfolio
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
High
Yield
Bond
Portfolio
were
to
decrease,
the
High
Yield
Bond
Portfolio
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
High
Yield
Bond
Portfolio’s
total
expenses
as
a
percentage
of
the
High
Yield
Bond
Portfolio’s
average
daily
net
assets
on
a
class-by-class
basis.
The
Board
noted
that
the
Low
Duration
Bond
Portfolio’s
contractual
management
fee
rate
ranked
in
the
second
quartile,
and
that
the
actual
management
fee
rate
and
total
expense
ratio
each
ranked
in
the
first
quartile
relative
to
the
Low
Duration
Bond
Portfolio’s
Expense
Peers.
The
Board
also
noted
that
the
Low
Duration
Bond
Portfolio
has
an
advisory
fee
arrangement
that
includes
breakpoints
that
adjust
the
fee
rate
downward
as
the
size
of
the
Low
Duration
Bond
Portfolio
increases
above
certain
contractually
specified
levels.
The
Board
noted
that
if
the
size
of
the
Low
Duration
Bond
Portfolio
were
to
decrease,
the
Low
Duration
Bond
Portfolio
could
lose
the
benefit
of
one
or
more
breakpoints.
The
Board
further
noted
that
BlackRock
and
the
Board
have
contractually
agreed
to
a
cap
on
the
Low
Duration
Bond
Portfolio’s
total
expenses
as
a
percentage
of
the
Low
Duration
Bond
Portfolio’s
average
daily
net
assets
on
a
class-by-class
basis.
D.
Economies
of
Scale:
The
Board,
including
the
Independent
Board
Members,
considered
the
extent
to
which
economies
of
scale
might
be
realized
as
the
assets
of
each
Fund
increase,
including
the
existence
of
fee
waivers
and/or
expense
caps,
as
applicable,
noting
that
any
contractual
fee
waivers
and
contractual
expense
caps
had
been
approved
by
the
Board.
In
its
consideration,
the
Board
further
considered
the
continuation
and/or
implementation
of
fee
waivers
and/or
expense
caps,
as
applicable.
The
Board
also
considered
the
extent
to
which
each
Fund
benefits
from
such
economies
of
scale
in
a
variety
of
ways,
and
whether
there
should
be
changes
in
the
advisory
fee
rate
or
breakpoint
structure
in
order
to
enable
each
Fund
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
each
Fund’s
asset
levels
and
whether
the
current
fee
schedule
was
appropriate.
E.
Other
Factors
Deemed
Relevant
by
the
Board
Members:
The
Board,
including
the
Independent
Board
Members,
also
took
into
account
other
ancillary
or
“fall-
out”
benefits
that
BlackRock
or
its
affiliates
may
derive
from
BlackRock’s
respective
relationships
with
each
Fund,
both
tangible
and
intangible,
such
as
BlackRock’s
ability
to
leverage
its
investment
professionals
who
manage
other
portfolios
and
its
risk
management
personnel,
an
increase
in
BlackRock’s
profile
in
the
investment
advisory
community,
and
the
engagement
of
BlackRock’s
affiliates
as
service
providers
to
each
Fund,
including
for
administrative,
distribution,
securities
lending
and
cash
management
services.
The
Board
also
considered
BlackRock’s
overall
operations
and
its
efforts
to
expand
the
scale
of,
and
improve
the
quality
of,
its
operations.
The
Board
also
noted
that,
subject
to
applicable
law,
BlackRock
may
use
and
benefit
from
third-party
research
obtained
by
soft
dollars
generated
by
certain
registered
fund
transactions
to
assist
in
managing
all
or
a
number
of
its
other
client
accounts.
In
connection
with
its
consideration
of
the
Agreement,
the
Board
also
received
information
regarding
BlackRock’s
brokerage
and
soft
dollar
practices.
The
Board
received
reports
from
BlackRock
which
included
information
on
brokerage
commissions
and
trade
execution
practices
throughout
the
year.
The
Board
noted
the
competitive
nature
of
the
open-end
fund
marketplace,
and
that
shareholders
are
able
to
redeem
their
Fund
shares
if
they
believe
that
each
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
each
Fund.
Conclusion
The
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreement
between
the
Manager
and
the
Trust,
on
behalf
of
each
Fund,
for
a
one-year
term
ending
June
30,
2021.
Based
upon
its
evaluation
of
all
of
the
aforementioned
factors
in
their
totality,
as
well
as
other
information,
the
Board,
including
the
Independent
Board
Members,
was
satisfied
that
the
terms
of
the
Agreements
were
fair
and
reasonable
and
in
the
best
interest
of
each
Fund
and
Disclosure
of
Investment
Advisory
Agreement
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
158
its
shareholders.
In
arriving
at
its
decision
to
approve
the
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.
Trustee
and
Officer
Information
159
Trustee
and
Officer
Information
Independent
Trustees
(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
Trustee
(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.
87
RICs
consisting
of
111
Portfolios
None
Karen
P.
Robards
1950
Co-Chair
of
the
Board
and
Trustee
(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.
87
RICs
consisting
of
111
Portfolios
Greenhill
&
Co.,
Inc.;
AtriCure,
Inc.
(medical
devices)
from
2000
until
2017
Michael
J.
Castellano
1946
Trustee
(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
2017
to
September
2020;
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)
from
2015
to
June
2020.
87
RICs
consisting
of
111
Portfolios
None
Cynthia
L.
Egan
1955
Trustee
(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.
87
RICs
consisting
of
111
Portfolios
Unum
(insurance);
The
Hanover
Insurance
Group
(insurance);
Envestnet
(investment
platform)
from
2013
until
2016
Frank
J.
Fabozzi
(d)
1948
Trustee
(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;
Visiting
Professor,
Rutgers
University
for
the
Spring
2019
semester;
Visiting
Professor,
New
York
University
for
the
2019
academic
year.
88
RICs
consisting
of
112
Portfolios
None
R.
Glenn
Hubbard
1958
Trustee
(Since
2019)
Dean,
Columbia
Business
School
from
2004
to
2019;
Faculty
member,
Columbia
Business
School
since
1988.
87
RICs
consisting
of
111
Portfolios
ADP
(data
and
information
services);
Metropolitan
Life
Insurance
Company
(insurance);
KKR
Financial
Corporation
(finance)
from
2004
until
2014
W.
Carl
Kester
(d)
1951
Trustee
(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.
88
RICs
consisting
of
112
Portfolios
None
Catherine
A.
Lynch
(d)
1961
Trustee
(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.
88
RICs
consisting
of
112
Portfolios
None
Trustee
and
Officer
Information
(continued)
2020
BlackRock
Annual
Report
to
Shareholders
160
Interested
Trustees
(a)(e)
(a)
The
address
of
each
Trustee
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Each
Independent
Trustee
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
Trust’s
by-laws
or
charter
or
statute,
or
until
December
31
of
the
year
in
which
he
or
she
turns
75.
Trustees
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
Trust’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
Trustees
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
Trustees
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
Trustees
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
Trust
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.
Robert
Fairbairn
1965
Trustee
(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.
122
RICs
consisting
of
269
Portfolios
None
John
M.
Perlowski
(d)
1964
Trustee
(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.
123
RICs
consisting
of
270
Portfolios
None
Trustee
and
Officer
Information
(continued)
161
Trustee
and
Officer
Information
Officers
Who
Are
Not
Trustees
(a)
(a)
The
address
of
each
Officer
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Officers
of
the
Trust
serve
at
the
pleasure
of
the
Board.
Further
information
about
the
Trust’s
Trustees
and
Officers
is
available
in
the
Trust’s
Statement
of
Additional
Information,
which
can
be
obtained
without
charge
by
calling
(800)
441-7762.
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
Americas
Product
Development
and
Governance
for
BlackRock’s
Global
Product
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
from
2019
to
2020;
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.
Additional
Information
2020
BlackRock
Annual
Report
to
Shareholders
162
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
file
their
complete
schedule
of
portfolio
holdings
with
the
SEC
for
the
first
and
third
quarters
of
each
fiscal
year
as
an
exhibit
to their
reports
on
Form
N-PORT.
The
Funds’
Forms
N-PORT are
available
on
the
SEC’s
website
at
sec.gov
.
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
;
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
;
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.
Additional
Information
(continued)
163
Additional
Information
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.
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Advisers
BlackRock
International
Limited
Edinburgh,
EH3
8BL
United
Kingdom
BlackRock
(Singapore)
Limited
(a)
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
(a)
For
BlackRock
Core
Bond
Portfolio.
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
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Glossary
of
Terms
Used
in
this
Report
2020
BlackRock
Annual
Report
to
Shareholders
164
Currency
AUD
Australian
Dollar
BRL
Brazilian
Real
CAD
Canadian
Dollar
CLP
Chilean
Peso
CNY
Chinese
Yuan
COP
Colombian
Peso
EUR
Euro
GBP
British
Pound
IDR
Indonesian
Rupiah
JPY
Japanese
Yen
KRW
South
Korean
Won
KZT
Kazakhstani
Tenge
MXN
Mexican
Peso
NOK
Norwegian
Krone
NZD
New
Zealand
Dollar
PLN
Polish
Zloty
RUB
New
Russian
Ruble
TRY
Turkish
Lira
TWD
Taiwan
New
Dollar
USD
United
States
Dollar
ZAR
South
African
Rand
Portfolio
Abbreviations
BA
Canadian
Bankers
Acceptances
BZDIOVER
Overnight
Brazil
CETIP
—
Interbank
Rate
CLO
Collateralized
Loan
Obligation
CSMC
Credit
Suisse
Mortgage
Capital
DAC
Designated
Activity
Company
ETF
Exchange-Traded
Fund
EURIBOR
Euro
Interbank
Offered
Rate
GO
General
Obligation
Bonds
LIBOR
London
Interbank
Offered
Rate
MSCI
Morgan
Stanley
Capital
International
MXIBTIIE
Mexico
Interbank
TIIE
28-Day
OTC
Over-the-counter
PCL
Public
Company
Limited
PIK
Payment-In-Kind
RB
Revenue
Bonds
REIT
Real
Estate
Investment
Trust
SCA
Svenska
Cellulosa
Aktiebolaget
SOFR
Secured
Overnight
Financing
Rate
SPDR
Standard
&
Poor’s
Depositary
Receipts
TBA
To-be-announced
Want
to
know
more?
blackrock.com
|
800-441-7762
This
report
is
intended
for
current
holders.
It
is
not
authorized
for
use
as
an
offer
of
sale
or
a
solicitation
of
an
offer
to
buy
shares
of
the
Funds
unless
preceded
or
accompanied
by
the
Funds’
current
prospectus.
Past
performance
results
shown
in
this
report
should
not
be
considered
a
representation
of
future
performance.
Investment
returns
and
principal
value
of
shares
will
fluctuate
so
that
shares,
when
redeemed,
may
be
worth
more
or
less
than
their
original
cost.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
Taxable3-9/20-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
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 Core Bond Portfolio
$53,550
$53,550
$0
$38
$21,200
$20,600
$0
$0
BlackRock GNMA Portfolio
$38,964
$38,964
$0
$38
$16,100
$16,000
$0
$0
BlackRock High Yield Bond
Portfolio
$75,582
$75,582
$0
$38
$24,264
$29,352
$0
$0
BlackRock Income Fund (Formerly BlackRock Credit Strategies Income Fund)
$52,428
$52,428
$0
$213
$16,100
$16,000
$0
$0
BlackRock Low Duration Bond Portfolio
$44,268
$44,268
$0
$38
$21,200
$20,600
$0
$0
BlackRock U.S. Government Bond Portfolio
$38,352
$38,352
$0
$38
$16,100
$16,000
$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
$1,984,000
$2,050,500
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 $1,984,000 and $2,050,500 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 Core Bond Portfolio
$21,200
$20,638
BlackRock GNMA Portfolio
$16,100
$16,038
BlackRock High Yield Bond Portfolio
$24,264
$29,390
BlackRock Income Fund (Formerly BlackRock Credit Strategies Income Fund)
$16,100
$16,213
BlackRock Low Duration Bond Portfolio
$21,200
$20,638
BlackRock U.S. Government Bond Portfolio
$16,100
$16,038
 
              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
$1,984,000
$2,050,500
 
              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 Registrant – 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
Item 13 – Exhibits attached hereto
              (a)(1) Code of Ethics – See Item 2
              (a)(2) Section 302 Certifications are attached
              section302.doc
(a)(3) Not Applicable
(a)(4) Not Applicable
(b) Section 906 Certifications are attached
section906.doc

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 Funds V  
 
By:     /s/ John M. Perlowski__________________
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds V  
 
Date: December 3, 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 Funds V  
 
Date: December 3, 2020
 
By:     /s/ Neal J. Andrews____________________
          Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Funds V  
 
Date: December 3, 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 Funds V, certify that:
1.
                  
I have reviewed this report on Form N-CSR of BlackRock Funds V;
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: December 3, 2020
/s/ John M. Perlowski_______________
                John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds V  

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 Funds V, certify that:
1.
                  
I have reviewed this report on Form N-CSR of BlackRock Funds V;
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: December 3, 2020
/s/ Neal J. Andrews_____________
                Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Funds V  

 
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 Funds V (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant's Report on Form N-CSR for the period ended September 30, 2020 (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: December 3, 2020
/s/ John M. Perlowski___________
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock Funds V  
 
 
Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock Funds V (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant's Report on Form N-CSR for the period ended September 30, 2020 (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: December 3, 2020
/s/ Neal J. Andrews___________
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock Funds V  
 
 
 
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.