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: 811-05742
 
Name of Fund: 
BlackRock Funds
SM
BlackRock Liquid Environmentally Aware Fund
 
Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809
 
Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Funds
SM
, 55 East 52nd Street, New York, NY 10055
 
Registrant’s telephone number, including area code: (800) 441-7762
 
Date of fiscal year end: 07/31/2021
 
Date of reporting period: 07/31/2021
 
Item 1 – Report to Stockholders
(a)
   
The Report to Shareholders is attached herewith.
 
(b)
 
 Not Applicable
July
31,
2021
Not
FDIC
Insured
-
May
Lose
Value
-
No
Bank
Guarantee
2021
Annual
Report
BlackRock
Funds
SM
BlackRock
Liquid
Environmentally
Aware
Fund
Dear
Shareholder,
The
12-month
reporting
period
as
of
July
31,
2021
was
a
remarkable
period
of
adaptation
and
recovery,
as
the
global
economy
dealt
with
the
implications
of
the
coronavirus
(or
“COVID-19”)
pandemic.
The
United
States,
along
with
most
of
the
world,
began
the
reporting
period
emerging
from
a
severe
recession,
prompted
by
pandemic-related
restrictions
that
disrupted
many
aspects
of
daily
life.
However,
easing
restrictions
and
robust
government
intervention
led
to
a
strong
rebound,
and
the
economy
grew
at
a
significant
pace
for
the
reporting
period,
eventually
regaining
the
output
lost
from
the
pandemic.
Equity
prices
rose
with
the
broader
economy,
as
strong
fiscal
and
monetary
support,
as
well
as
the
development
of
vaccines,
made
investors
increasingly
optimistic
about
the
economic
outlook.
The
implementation
of
mass
vaccination
campaigns
and
passage
of
two
additional
fiscal
stimulus
packages
further
boosted
stocks,
and
many
equity
indices
neared
or
surpassed
all-time
highs
late
in
the
reporting
period.
In
the
United
States,
returns
of
small-capitalization
stocks,
which
benefited
the
most
from
the
resumption
of
in-person
activities,
outpaced
large-capitalization
stocks.
International
equities
also
gained,
as
both
developed
and
emerging
markets
rebounded
substantially.
The
10-year
U.S.
Treasury
yield
(which
is
inversely
related
to
bond
prices)
had
fallen
sharply
prior
to
the
beginning
of
the
reporting
period,
which
meant
bonds
were
priced
for
extreme
risk
avoidance
and
economic
disruption.
Despite
expectations
of
doom
and
gloom,
the
economy
expanded
rapidly,
stoking
inflation
concerns
in
early
2021,
which
led
to
higher
yields
and
a
negative
overall
return
for
most
U.S.
Treasuries.
In
the
corporate
bond
market,
support
from
the
U.S.
Federal
Reserve
(the
“Fed”)
assuaged
credit
concerns
and
led
to
solid
returns
for
high-yield
corporate
bonds,
although
investment-grade
corporates
declined
slightly.
The
Fed
remained
committed
to
accommodative
monetary
policy
by
maintaining
near
zero
interest
rates
and
by
reiterating
that
inflation
could
exceed
its
2%
target
for
a
sustained
period
without
triggering
a
rate
increase.
In
response
to
rising
inflation
late
in
the
period,
the
Fed
changed
its
market
guidance,
raising
the
likelihood
of
less
bond
purchasing
and
the
possibility
of
higher
rates
in
2023.
Looking
ahead,
we
believe
that
the
global
expansion
will
continue
to
broaden
as
Europe
and
other
developed
market
economies
gain
momentum,
although
the
Delta
variant
remains
a
threat,
particularly
in
emerging
markets.
While
we
expect
inflation
to
remain
elevated
in
the
medium-term
as
the
expansion
continues,
we
believe
the
recent
uptick
owes
more
to
temporary
supply
disruptions
than
a
lasting
change
in
fundamentals.
The
change
in
Fed
policy
also
means
that
moderate
inflation
is
less
likely
to
be
followed
by
interest
rate
hikes
that
could
threaten
the
economic
expansion.
Overall,
we
favor
a
moderately
positive
stance
toward
risk,
with
an
overweight
in
equities.
Sectors
that
are
better
poised
to
manage
the
transition
to
a
lower-carbon
world,
such
as
technology
and
healthcare,
are
particularly
attractive
in
the
long-term.
U.S.
small-capitalization
stocks
and
European
equities
are
likely
to
benefit
from
the
continuing
vaccine-led
restart.
We
are
underweight
long-term
credit,
but
inflation-protected
U.S.
Treasuries,
Asian
fixed
income,
and
Chinese
government
bonds
offer
potential
opportunities.
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.
In
this
environment,
our
view
is
that
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
July
31,
2021
6-Month
12-Month
U.S.
large
cap
equities
(S&P
500
®
Index)
19.19%
36.45%
U.S.
small
cap
equities
(Russell
2000
®
Index)
7.86
51.97
International
equities
(MSCI
Europe,
Australasia,
Far
East
Index)
10.83
30.31
Emerging
market
equities
(MSCI
Emerging
Markets
Index)
(2.76)
20.64
3-month
Treasury
bills
(ICE
BofA
3-Month
U.S.
Treasury
Bill
Index)
0.02
0.08
U.S.
Treasury
securities
(ICE
BofA
10-Year
U.S.
Treasury
Index)
(0.59)
(5.12)
U.S.
investment
grade
bonds
(Bloomberg
Barclays
U.S.
Aggregate
Bond
Index)
0.21
(0.70)
Tax-exempt
municipal
bonds
(S&P
Municipal
Bond
Index)
1.38
3.47
U.S.
high
yield
bonds
(Bloomberg
Barclays
U.S.
Corporate
High
Yield
2%
Issuer
Capped
Index)
3.66
10.62
This
Page
is
not
Part
of
Your
Fund
Report
2
Table
of
Contents
Page
3
The
Markets
in
Review
...................................................................................................
2
Annual
Report:
Money
Market
Overview
..................................................................................................
4
Fund
Information
.......................................................................................................
5
Disclosure
of
Expenses
...................................................................................................
5
Financial
Statements:
Schedule
of
Investments
................................................................................................
6
Statement
of
Assets
and
Liabilities
..........................................................................................
9
Statement
of
Operations
................................................................................................
11
Statements
of
Changes
in
Net
Assets
........................................................................................
12
Financial
Highlights
.....................................................................................................
13
Notes
to
Financial
Statements
...............................................................................................
17
Report
of
Independent
Registered
Public
Accounting
Firm
..............................................................................
23
Important
Tax
Information
.................................................................................................
24
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
...................................................................
25
Trustee
and
Officer
Information
..............................................................................................
29
Additional
Information
....................................................................................................
33
Glossary
of
Terms
Used
in
this
Report
..........................................................................................
35
Money
Market
Overview
For
the
12-Month
Period
Ended
July
31,
2021
2021
BlackRock
Annual
Report
to
Shareholders
4
In
the
second
half
of
2020
and
onset
of
2021,
the
United
States
experienced
the
transition
to
the
Biden-Harris
administration,
passage
of
the
$1.9
trillion
American
Rescue
Plan
Act
of
2021,
and
an
acceleration
of
COVID-19
vaccination
programs.
As
the
year
progressed
and
vaccination
efforts
ramped
up,
COVID-19
cases
in
the
United
States
plummeted
and
the
country
started
to
reopen.
U.S.
macroeconomic
data
showed
signs
of
improvement
as
evidenced
by
the
unemployment
rate
dropping
from
8.4%
in
August
2020
to
5.4%
as
of
July
2021.
However,
this
was
not
enough
for
the
Fed
to
make
any
changes
to
monetary
policy
as
they
keep
policy
rates
pinned
near
zero
until
they
see
further
recovery
in
the
labor
market
closer
to
pre-pandemic
levels
and
inflation
reaching
2%
“sustainably”
and
remaining
on
track
to
run
moderately
above
2%.
At
the
June
2021
meeting,
the
Fed
made
upward
“technical”
adjustments
of
0.05%
to
the
interest
rate
paid
on
required
and
excess
reserves
and
the
offering
rate
on
overnight
reverse
repurchase
agreement
operations,
bringing
these
“administered
rates”
to
0.15%
and
0.05%,
respectively.
Fed
Chair
Jerome
Powell
noted
in
the
press
conference
following
the
meeting
that
these
adjustments
were
made
“in
order
to
keep
the
Federal
Funds
rate
well
within
the
target
range
and
to
support
smooth
functioning
in
money
markets.”
The
pace
of
asset
purchases
continued
to
be
left
unchanged
at
$120
billion
a
month
during
the
period,
however,
the
Fed
statement
was
updated
to
acknowledge
“the
economy
has
made
progress
toward”
the
Federal
Open
Market
Committee’s
maximum
employment
and
inflation
goals
and
“the
Committee
will
continue
to
assess
progress
in
coming
meetings.”
The
two-year
suspension
of
the
U.S.
debt
ceiling
expired
at
the
end
of
July.
We
expect
the
U.S.
Treasury
to
employ
accounting
exercises
known
as
“extraordinary
measures”
to
fund
the
government
into
early
fall.
At
this
time,
the
debt
limit
would
need
to
be
addressed
if
action
is
not
taken
sooner.
Industry-wide
money
market
mutual
funds
(“MMFs”)
experienced
outflows
of
nearly
$68
billion
during
the
12-month
period.
Of
this,
assets
of
prime
and
municipal
MMFs
fell
$273
billion
and
$30
billion,
respectively,
while
government
MMFs
experienced
$235
billion
of
inflows.
Specific
to
BlackRock
Liquid
Environmentally
Aware
Fund,
the
Fund
increased
by
$100
million
over
the
year
with
assets
totaling
$1.2
billion
in
July
2021
as
more
investors
gravitate
toward
sustainably
focused
products.
We
have
also
seen
increasing
interest
on
the
part
of
issuers
to
bring
sustainability-linked
bonds
or
green
bonds
to
market
in
the
money
market
space.
The
supply-demand
picture
also
remains
challenging
in
the
credit
space.
The
three-month
London
Interbank
Offered
Rate
(“LIBOR”)
fell
to
an
all-time
low
of
0.12%
on
July
30,
2021.
Similarly,
the
three-month
LIBOR
overnight
indexed
swap
spread—a
gauge
of
stress
in
the
financial
system—moved
in
a
tight
range
of
0.03%
to
0.05%
during
July.
In
setting
strategy,
we
will
maintain
a
bias
toward
U.S.
dollar-denominated
certificates
of
deposits
and
high-quality
issuers
of
commercial
paper
with
six-month
maturities
or
shorter.
We
have
naturally
reduced
our
exposure
to
U.S.
Treasuries
and
invested
in
overnight
time
deposits
as
they
presented
exceptional
value
specifically
after
the
Fed’s
technical
adjustments
in
June
2021
as
the
yields
nearly
doubled
to
0.08%
to
0.10%.
Even
with
this
preference,
we
still
pursue
opportunities
further
out
the
yield
curve
in
tenors
nine-months
to
one-year
in
fixed
and
floating
rate
securities
that,
in
our
opinion,
represent
convincing
relative
value.
We
are
cautious
investing
in
certain
credit
sectors
further
out
the
curve
that
are
subject
to
heightened
risks
associated
with
the
COVID-19
Delta
variant,
and
we
continued
to
seek
positions
with
ample
near-term
liquidity.
Past
performance
is
no
guarantee
of
future
results.
Index
performance
is
shown
for
illustrative
purposes
only.
You
cannot
invest
directly
in
an
index.
Fund
Information
as
of
July
31,
2021
5
Fund
Information
BlackRock
Liquid
Environmentally
Aware
Fund
Investment
Objective
BlackRock
Liquid
Environmentally
Aware
Fund’s
(the
“Fund”)
investment
objective
is
to
seek
as
high
a
level
of
current
income
as
is
consistent
with
liquidity
and
preservation
of
capital
while
giving
consideration
to
select
environmental
criteria.
Mischler
Financial
Group
Shares
commenced
operations
on
May
20,
2021.
Disclosure
of
Expenses
Shareholders
of
the
Fund
may
incur
the
following
charges:
(a)
transactional
expenses;
and
(b)
operating
expenses,
including
investment
advisory
fees,
administration
fees, service
and
distribution
fees, and
other
fund
expenses.
The
expense
example
shown
(which
is
based
on
a
hypothetical
investment
of
$1,000
invested
on February
1,
2021 and
held
through
July
31,
2021)
is
intended
to
assist
shareholders
both
in
calculating
expenses
based
on
an
investment
in
the
Fund
and
in
comparing
these
expenses
with
similar
costs
of
investing
in
other
mutual
funds.
The
expense
example
provides
information
about
actual
account
values
and
actual
expenses.
In
order
to
estimate
the
expenses
a
shareholder
paid
during
the
period
covered
by
this
report,
shareholders
can
divide
their
account
value
by
$1,000
and
then
multiply
the
result
by
the
number
corresponding
to
their share
class
under
the
heading
entitled
“Expenses
Paid
During
the
Period.” 
The
expense
example
also
provides
information
about
hypothetical
account
values
and
hypothetical
expenses
based
on the
Fund’s
actual
expense
ratio
and
an
assumed
rate
of
return
of
5%
per
year
before
expenses.
In
order
to
assist
shareholders
in
comparing
the
ongoing
expenses
of
investing
in
the
Fund
and
other
funds,
compare
the
5%
hypothetical
example
with
the
5%
hypothetical
examples
that
appear
in
shareholder
reports
of
other
funds. 
The
expenses
shown
in
the
expense
example
are
intended
to
highlight
shareholders’
ongoing
costs
only
and
do
not
reflect
transactional
expenses,
such
as
sales
charges,
if
any.
Therefore,
the
hypothetical
example is
useful
in
comparing
ongoing
expenses
only,
and
will
not
help
shareholders
determine
the
relative
total
expenses
of
owning
different
funds.
If
these
transactional
expenses
were
included,
shareholder
expenses
would
have
been
higher.
Expense
Example
CURRENT
SEVEN-DAY
YIELDS
7-Day
SEC
Yields
7-Day
Yields
Institutional
..............................
0.03‌
%
0.03‌
%
Direct
..................................
0.04‌
0.04‌
Mischler
Financial
Group
Shares
...............
0.02‌
0.02‌
Investor
A
...............................
0.00‌
0.00‌
The
7-Day
SEC
Yields
may
differ
from
the
7-Day
Yields
shown
above
due
to
the
fact
that
the
7-Day
SEC
Yields
exclude
distributed
capital
gains.
Past
performance
is
not
an
indication
of
future
results.
PORTFOLIO
COMPOSITION
Asset
Type
Percent
of
Net
Assets
Commercial
Paper
...................................
44‌
%
Certificates
of
Deposit
.................................
17‌
Time
Deposits
......................................
15‌
Repurchase
Agreements
...............................
13‌
Municipal
Bonds
....................................
8‌
U.S.
Treasury
Obligations
..............................
1‌
U.S.
Government
Sponsored
Agency
Obligations
..............
1‌
Other
Assets
Less
Liabilities
............................
1‌
Actual
Hypothetical
(a)
Beginning
Account
Value
(02/01/21)
Ending
Account
Value
(07/31/21)
Expenses
Paid
During
the
Period
(b)
Beginning
Account
Value
(02/01/21)
Ending
Account
Value
(07/31/21)
Expenses
Paid
During
the
Period
(b)
Annualized
Expense
Ratio
Institutional
...............................
$
1,000.00‌
$
1,000.00‌
$
0.74‌
$
1,000.00‌
$
1,024.05‌
$
0.75‌
0.15‌%
Direct
...................................
1,000.00‌
1,000.10‌
0.64‌
1,000.00‌
1,024.15‌
0.65‌
0.13‌
Mischler
Financial
Group
Shares
.................
1,000.00‌
1,000.00‌
0.28‌
1,000.00‌
1,024.10‌
0.70‌
0.14‌
Investor
A
................................
1,000.00‌
999.90‌
0.84‌
1,000.00‌
1,023.95‌
0.85‌
0.17‌
(a)
Hypothetical
5%
annual
return
before
expenses
is
calculated
by
prorating
the
number
of
days
in
the
most
recent
fiscal
half
year
divided
by
365.
(b)
For
each
class
of
the
Fund,
expenses
are
equal
to
the
annualized
expense
ratio
for
the
class,
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
181/365
(to
reflect
the
one-
half
year
period
shown),
except
for
Mischler
Financial
Group
Shares,
which
is
multiplied
by
73/365
(to
reflect
the
period
since
inception
date
of
May
20,
2021
to
July
31,
2021).
2021
BlackRock
Annual
Report
to
Shareholders
BlackRock
Liquid
Environmentally
Aware
Fund
6
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
July
31,
2021
Security
Par
(000)
Par
(000)
Value
Municipal
Bonds
—
8.1%
(a)
Arizona
-
1.9%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States:
(b)(c)
Series
2020-MIZ9037,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
0.41%, 09/03/21
................
USD
10,000
$
10,000,000
Series
2020-MIZ9031,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
0.41%, 09/03/21
................
5,000
5,000,000
Series
2020-MIZ9045,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
0.41%, 09/03/21
................
8,750
8,750,000
23,750,000
California
-
0.4%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9048,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
0.41%, 09/03/21
(b)(c)
................
5,000
5,000,000
Colorado
-
0.5%
Colorado
Housing
and
Finance
Authority
(GNMA),
Series
2021C-2,
RB,
VRDN
(Federal
Home
Loan
Bank
SBPA),
0.06%, 08/06/21
..................
5,600
5,600,000
New
York
-
3.7%
Taxable
Series
2021-XFT1210,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2021-XFT1210,
RB,
VRDN
(JP
Morgan
Chase
Bank
NA
LIQ),
0.17%, 08/06/21
(b)(c)
................
45,080
45,080,000
Other
-
0.2%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States,
Series
2020-MIZ9043,
RB,
VRDN
(Mizuho
Bank
Ltd.
LOC),
0.31%, 08/06/21
(b)
(c)
............................
2,070
2,070,000
Rhode
Island
-
1.4%
Mizuho
Floater/Residual
Trust,
Tender
Option
Bond
Trust
Receipts/Certificates
Various
States:
(b)(c)
Series
2020-MIZ9023,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
0.40%, 09/03/21
................
8,955
8,955,000
Series
2021-MIZ9056,
RB,
VRDN
(Mizuho
Capital
Markets
LLC
LOC),
0.40%, 09/03/21
................
8,550
8,550,000
17,505,000
Total
Municipal
Bonds
—
8.1%
(Cost:
$99,005,000)
...............................
99,005,000
Security
Par
(000)
Par
(000)
Value
U.S.
Government
Sponsored
Agency
Obligations
—
0.8%
Agency
Obligations
—
0.8%
United
States
International
Development
Finance
Corp.
Variable
Rate
Notes:
(3
Month
Treasury
Bill
Rate
+
0.00%),
0.09%, 08/06/21
(d)
...............
USD
10,000
$
10,000,000
10,000,000
Total
U.S.
Government
Sponsored
Agency
Obligations
—
0.8%
(Cost:
$10,000,000)
...............................
10,000,000
U.S.
Treasury
Obligations
—
1.3%
U.S.
Treasury
Bills,
0.05%, 11/04/21
(e)
......
15,000
14,997,895
Total
U.S.
Treasury
Obligations
—
1.3%
(Cost:
$14,995,012)
...............................
14,997,895
Certificates
of
Deposit
—
17.6%
Domestic
—
1.4%
Citibank
NA,
0.25%, 09/08/21
...........
10,000
10,001,998
Goldman
Sachs
Bank
USA,
(SOFR
+
0.17%),
0.22%, 07/26/22
(d)
.................
7,000
6,999,196
17,001,194
Euro
—
0.3%
Bank
of
Montreal,
0.28%, 03/09/22
(e)
.......
4,000
3,995,959
Yankee
—
15.9%
(f)
Bank
of
Montreal,
Chicago
(d)
:
(LIBOR
USD
3
Month
+
0.04%),
0.18%, 10/06/21
................
5,000
5,000,356
(LIBOR
USD
3
Month
+
0.11%),
0.23%, 12/13/21
................
7,500
7,502,731
(LIBOR
USD
3
Month
+
0.05%),
0.20%, 02/23/22
................
5,000
5,000,581
(LIBOR
USD
3
Month
+
0.05%),
0.24%, 06/06/22
................
10,000
10,000,874
Bank
of
Nova
Scotia,
Houston
(d)
:
(SOFR
+
0.16%),
0.21%, 06/03/22
......
15,000
15,002,262
(SOFR
+
0.20%),
0.25%, 06/17/22
......
10,000
10,005,288
Canadian
Imperial
Bank
of
Commerce,
New
York
(d)
:
(LIBOR
USD
3
Month
+
0.05%),
0.17%, 09/13/21
................
5,000
5,000,461
(LIBOR
USD
3
Month
+
0.11%),
0.24%, 01/14/22
................
25,000
25,011,216
(LIBOR
USD
3
Month
+
0.05%),
0.18%, 06/07/22
................
7,500
7,500,581
Credit
Industriel
et
Commercial,
New
York,
(LIBOR
USD
3
Month
+
0.05%),
0.23%, 05/06/22
(d)
.................
5,000
5,000,716
Credit
Suisse
AG,
New
York:
(SOFR
+
0.35%),
0.40%, 08/03/21
(d)
.....
15,000
15,000,460
0.34%, 11/09/21
..................
7,500
7,503,943
Kookmin
Bank,
New
York,
(LIBOR
USD
1
Month
+
0.23%),
0.33%, 02/07/22
(d)
.....
5,000
5,000,450
MUFG
Bank
Ltd.,
New
York,
0.23%, 01/28/22
.
10,000
10,003,481
Royal
Bank
of
Canada,
New
York,
(LIBOR
USD
3
Month
+
0.09%),
0.22%, 12/10/21
(d)
....
20,000
20,005,892
Standard
Chartered
Bank,
New
York,
0.24%, 02/01/22
..................
20,000
20,005,046
BlackRock
Liquid
Environmentally
Aware
Fund
Schedule
of
Investments
7
(Percentages
shown
are
based
on
Net
Assets)
Schedule
of
Investments
(continued)
July
31,
2021
Security
Par
(000)
Par
(000)
Value
Yankee
(continued)
Svenska
Handelsbanken
AB,
New
York,
0.17%, 03/04/22
..................
USD
20,000
$
20,001,082
192,545,420
Total
Certificates
of
Deposit
—
17.6%
(Cost:
$213,495,006)
..............................
213,542,573
Commercial
Paper
—
43.6%
Alinghi
Funding
Co.
LLC
(e)
:
0.10%,
09/16/21
..................
5,000
4,999,320
0.14%,
12/07/21
..................
5,000
4,997,599
Alpine
Securitization
Ltd.
(c)
:
0.26%,
09/03/21
..................
5,000
5,001,432
0.19%,
10/03/21
..................
10,000
10,000,939
0.26%,
07/08/22
..................
9,500
9,504,955
Antalis
SA
(e)
:
0.11%,
08/06/21
..................
4,000
3,999,914
0.15%,
12/08/21
..................
9,000
8,995,284
Atlantic
Asset
Securitization
LLC,
(LIBOR
USD
1
Month
+
0.06%),
0.15%
,
08/26/21
(d)
....
2,500
2,500,033
Australia
&
New
Zealand
Banking
Group
Ltd.:
(LIBOR
USD
3
Month
+
3.00%),
0.16%,
03/02/22
(d)
....................
6,000
6,000,411
0.15%,
03/18/22
(e)
.................
20,000
19,981,392
Barclays
Bank
plc,
0.09%
,
08/02/21
(e)
......
25,000
24,999,812
BNZ
International
Funding
Ltd.,
0.13%
,
01/06/22
(e)
......................
5,000
4,997,267
BPCE
SA
(e)
:
0.13%,
12/01/21
..................
7,500
7,496,616
0.14%,
12/09/21
..................
10,000
9,995,087
Britannia
Funding
Co.
LLC,
0.11%
,
08/18/21
(c)(e)
7,500
7,499,569
Cargill,
Inc.,
0.06%
,
08/02/21
(e)
...........
26,000
25,999,870
DNB
Bank
ASA,
(LIBOR
USD
3
Month
+
0.04%),
0.20%
,
08/11/21
(d)
...........
3,000
3,000,055
DZ
Bank
AG,
0.09%
,
08/02/21
(e)
..........
40,000
39,999,700
Erste
Finance
Delaware
LLC,
0.13%
,
08/02/21
(e)
......................
20,000
19,999,782
HSBC
Bank
plc,
(LIBOR
USD
3
Month
+
0.14%),
0.27%
,
09/02/21
(d)
...........
17,000
17,001,826
ING
US
Funding
LLC
(e)
:
0.09%,
09/27/21
..................
10,000
9,998,525
0.12%,
12/14/21
..................
5,000
4,997,717
0.14%,
02/18/22
..................
4,000
3,996,887
Kookmin
Bank,
0.16%
,
11/02/21
(e)
.........
14,000
13,994,089
Lloyds
Bank
plc,
0.10%
,
10/25/21
(e)
........
30,000
29,992,822
Mackinac
Funding
Co.
LLC,
0.16%
,
10/15/21
(e)
5,000
4,998,332
Mitsubishi
UFJ
Trust
&
Banking
Corp.,
0.08%
,
08/20/21
(e)
......................
10,000
9,999,557
National
Bank
of
Canada,
0.09%
,
09/27/21
(e)
.
25,000
24,996,312
Old
Line
Funding
LLC,
0.08%
,
08/03/21
(e)
...
10,000
9,999,911
Santander
UK
plc,
0.10%
,
09/15/21
(e)
......
15,000
14,998,022
Security
Par
(000)
Par
(000)
Value
Commercial
Paper
(continued)
Societe
Generale
SA:
0.06%,
09/02/21
(e)
.................
USD
25,000
$
24,998,513
0.14%,
01/24/22
..................
12,500
12,491,409
Sumitomo
Mitsui
Trust
Bank
Ltd.,
0.09%
,
10/27/21
(e)
......................
6,000
5,998,665
Svenska
Handelsbanken
AB,
(LIBOR
USD
3
Month
+
0.01%),
0.15%
,
09/23/21
(d)
.....
5,000
5,000,465
Swedbank
AB,
0.06%
,
08/05/21
(e)
.........
20,000
19,999,800
Thunder
Bay
Funding
LLC,
0.12%
,
11/15/21
(e)
20,163
20,155,862
Toronto-Dominion
Bank
(e)
:
0.08%,
08/04/21
..................
10,000
9,999,889
0.17%,
05/03/22
..................
17,206
17,184,420
UBS
AG:
(LIBOR
USD
3
Month
+
0.10%),
0.28%,
11/05/21
(d)
....................
10,000
10,000,255
(LIBOR
USD
3
Month
+
0.17%),
0.30%,
12/02/21
(d)
....................
5,000
5,001,900
(SOFR
+
0.20%),
0.25%,
02/08/22
(d)
....
5,000
5,000,911
0.20%,
03/30/22
(e)
.................
5,000
4,993,216
(SOFR
+
0.24%),
0.29%,
04/05/22
(d)
....
5,000
5,000,217
0.24%,
07/12/22
(e)
.................
5,000
4,988,722
(SOFR
+
0.19%),
0.24%,
07/13/22
(d)
....
5,000
5,000,000
Westpac
Banking
Corp.
(d)
:
(LIBOR
USD
3
Month
+
0.00%),
0.13%,
09/01/21
.....................
5,000
5,000,108
(LIBOR
USD
3
Month
+
0.01%),
0.19%,
02/04/22
.....................
5,000
4,999,951
Total
Commercial
Paper
—
43.6%
(Cost:
$530,692,281)
..............................
530,757,340
Time
Deposits
—
14.5%
Canadian
Imperial
Bank
of
Commerce,
0.05%, 08/02/21
..................
5,000
5,000,000
Credit
Agricole
Corporate
and
Investment
Bank
SA,
0.07%, 08/02/21
...............
28,493
28,493,000
Erste
Group
Bank
AG,
0.08%, 08/02/21
.....
10,000
10,000,000
Mizuho
Bank
Ltd.,
0.08%, 08/02/21
........
33,000
33,000,000
Royal
Bank
of
Canada,
0.07%, 08/02/21
....
25,000
25,000,000
Skandinaviska
Enskilda
Banken
AB,
0.05%, 08/02/21
..................
40,000
40,000,000
Svenska
Handelsbanken
AB,
0.05%, 08/02/21
35,000
35,000,000
Total
Time
Deposits
—
14.5%
(Cost:
$176,493,000)
..............................
176,493,000
Total
Repurchase
Agreements
—
13.0%
(Cost:
$158,000,000
)
..............................
158,000,000
Total
Investments
—
98.9%
(Cost:
$1,202,680,299
)
(g)
...........................
1,202,795,808
Other
Assets
Less
Liabilities
—
1.1%
....................
13,144,217
Net
Assets
—
100.0%
...............................
$
1,215,940,025
(a)
Variable
rate
security.
Rate
as
of
period
end
and
maturity
is
the
date
the
principal
owed
can
be
recovered
through
demand.
(b)
These
securities
are
short-term
floating
rate
certificates
issued
by
tender
option
bond
trusts
and
are
secured
by
the
underlying
municipal
bond
securities.
(c)
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.
(d)
Variable
rate
security.
Interest
rate
resets
periodically.
The
rate
shown
is
the
effective
interest
rate
as
of
period
end.
Security
description
also
includes
the
reference
rate
and
spread
if
published
and
available.
(e)
Rates
are
the
current
rate
or
a
range
of
current
rates
as
of
period
end.
(f)
Issuer
is
a
U.S.
branch
of
a
foreign
domiciled
bank.
(g)
Cost
for
U.S.
federal
income
tax
purposes.
2021
BlackRock
Annual
Report
to
Shareholders
BlackRock
Liquid
Environmentally
Aware
Fund
8
Schedule
of
Investments
(continued)
July
31,
2021
See
notes
to
financial
statements.
Repurchase
Agreements
Repurchase
Agreements
Collateral
Counterparty
Coupon
Rate
Purchase
Date
Maturity
Date
Par
(000)
A
t
Value
(000)
Proceeds
Including
Interest
Position
Original
Par
Position
Received,
At
Value
Bank
of
America
Securities,
Inc.
.....
0.05
%
07/30/21
08/02/21
$
5,000
$
5,000
$
5,000,021
U.S.
Treasury
Obligation,
2.63%,
due
12/15/21
.........
$
5,035,000
$
5,100,040
$
–
$
–
BMO
Capital
Markets
Corp.
............
0.05
07/30/21
08/02/21
120,000
120,000
120,000,500
U.S.
Government
Sponsored
Agency
Obligations
and
Corporate/Debt
Obligations,
0.00%
to
20.08%,
due
02/15/22
to
06/20/71
.......
2,572,297,422
125,915,092
$
–
$
–
Citigroup
Global
Markets,
Inc.
.............
0.06
07/30/21
08/02/21
10,000
10,000
10,000,050
U.S.
Treasury
Obligation,
2.50%,
due
02/15/45
.........
9,070,700
10,200,002
$
–
$
–
JP
Morgan
Securities
LLC
0.05
07/30/21
08/02/21
23,000
23,000
23,000,096
U.S.
Government
Sponsored
Agency
Obligations,
2.50%
to
7.00%,
due
05/15/26
to
03/15/62
.........
52,150,259
23,460,000
$
–
$
–
$
158,000
$
164,675,134
$
–
$
–
Fair
Value
Hierarchy
as
of
Period
End
Various
inputs
are
used
in
determining
the
fair
value
of
financial
instruments.
For
a
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
table
summarizes
the
Fund’s
financial
instruments
categorized
in
the
fair
value
hierarchy.
The
breakdown
of
the
Fund's
financial
instruments
into
major
categories
is
disclosed
in
the
Schedule
of
Investments
above.
Level
1
Level
2
Level
3
Total
Assets:
Investments:
Short-Term
Securities
.......................................
$
—
$
1,202,795,808
$
—
$
1,202,795,808
Statement
of
Assets
and
Liabilities

July
31,
2021
9
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
ASSETS
Investments,
at
value
—
unaffiliated
(a)
........................................................................................
$
1,044,795,808‌
Cash
.............................................................................................................
13,028,633‌
Repurchase
agreements,
at
value
(b)
.........................................................................................
158,000,000‌
Receivables:
–‌
Capital
shares
sold
...................................................................................................
187‌
Interest
—
unaffiliated
.................................................................................................
169,465‌
From
the
Manager
...................................................................................................
55,849‌
Deferred
offering
costs
..................................................................................................
94,965‌
Prepaid
expenses
.....................................................................................................
112,036‌
Total
assets
.........................................................................................................
1,216,256,943‌
LIABILITIES
Payables:
–‌
Accounting
services
fees
...............................................................................................
27,183‌
Administration
fees
...................................................................................................
44,953‌
Income
dividend
distributions
............................................................................................
10,557‌
Investment
advisory
fees
..............................................................................................
103,292‌
Trustees'
and
Officer's
fees
.............................................................................................
2,910‌
Professional
fees
....................................................................................................
80,741‌
Registration
fees
....................................................................................................
24,461‌
Other
accrued
expenses
...............................................................................................
22,821‌
Total
liabilities
........................................................................................................
316,918‌
NET
ASSETS
........................................................................................................
$
1,215,940,025‌
NET
ASSETS
CONSIST
OF
Paid-in
capital
........................................................................................................
$
1,215,694,177‌
Accumulated
earnings
..................................................................................................
245,848‌
NET
ASSETS
........................................................................................................
$
1,215,940,025‌
(a)
  Investments,
at
cost
—
unaffiliated
........................................................................................
$
1,044,680,299‌
(b)
  Repurchase
agreements,
at
cost
—
unaffiliated
................................................................................
$
158,000,000‌
Statement
of
Assets
and
Liabilities
(continued)
July
31,
2021
2021
BlackRock
Annual
Report
to
Shareholders
10
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
NET
ASSET
VALUE
Institutional
Net
assets
........................................................................................................
$
322,577,912‌
Shares
outstanding
.................................................................................................
322,424,621‌
Net
asset
value
....................................................................................................
$
1.0005‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.0
01‌
Direct
Net
assets
........................................................................................................
$
893,025,959‌
Shares
outstanding
.................................................................................................
892,594,393‌
Net
asset
value
....................................................................................................
$
1.0005‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Mischler
Financial
Group
Shares
Net
assets
........................................................................................................
$
50,002‌
Shares
outstanding
.................................................................................................
49,977‌
Net
asset
value
....................................................................................................
$
1.0005‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Investor
A
Net
assets
........................................................................................................
$
286,152‌
Shares
outstanding
.................................................................................................
286,009‌
Net
asset
value
....................................................................................................
$
1.0005‌
Shares
authorized
..................................................................................................
Unlimited
Par
value
........................................................................................................
$
0.00
1‌
Statement
of
Operations

Year
Ended
July
31,
2021
11
Financial
Statements
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
INVESTMENT
INCOME
Interest
—
unaffiliated
................................................................................................
$
2,921,100‌
Total
investment
income
.................................................................................................
2,921,100‌
EXPENSES
Investment
advisory
..................................................................................................
1,263,220‌
Administration
—
class
specific
..........................................................................................
689,244‌
Registration
.......................................................................................................
159,961‌
Professional
.......................................................................................................
114,020‌
Accounting
services
..................................................................................................
71,852‌
Custodian
.........................................................................................................
28,758‌
Offering
..........................................................................................................
18,124‌
Trustees
and
Officer
..................................................................................................
12,694‌
Transfer
agent
—
class
specific
..........................................................................................
1,813‌
Service
—
class
specific
...............................................................................................
718‌
Miscellaneous
......................................................................................................
143,522‌
Total
expenses
.......................................................................................................
2,503,926‌
Less:
–‌
Administration
fees
waived
—
class
specific
..................................................................................
(114,118‌)
Fees
waived
and/or
reimbursed
by
the
Manager
...............................................................................
(548,932‌)
Service
and
distribution
fees
waived
and/or
reimbursed
—
class
specific
...............................................................
(705‌)
Transfer
agent
fees
waived
and/or
reimbursed
—
class
specific
.....................................................................
(1,813‌)
Total
expenses
after
fees
waived
and/or
reimbursed
..............................................................................
1,838,358‌
Net
investment
income
..................................................................................................
1,082,742‌
REALIZED
AND
UNREALIZED
GAIN
(LOSS)
$
(502,345‌)
Net
realized
gain
from
investments
........................................................................................
18,022‌
Net
change
in
unrealized
depreciation
on
investments
...........................................................................
(520,367‌)
Net
realized
and
unrealized
loss
............................................................................................
(502,345‌)
NET
INCREASE
IN
NET
ASSETS
RESULTING
FROM
OPERATIONS
..................................................................
$
580,397‌
Statements
of
Changes
in
Net
Assets

2021
BlackRock
Annual
Report
to
Shareholders
12
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
Year
Ended
July
31,
2021
2020
INCREASE
(DECREASE)
IN
NET
ASSETS
OPERATIONS
Net
investment
income
.............................................................................
$
1,082,742‌
$
10,596,707‌
Net
realized
gain
.................................................................................
18,022‌
126,640‌
Net
change
in
unrealized
appreciation
(depreciation)
..........................................................
(520,367‌)
603,140‌
Net
increase
in
net
assets
resulting
from
operations
.............................................................
580,397‌
11,326,487‌
DISTRIBUTIONS
TO
SHAREHOLDERS
(a)
Institutional
....................................................................................
(202,225‌)
(1,621,385‌)
Direct
........................................................................................
(1,039,414‌)
(8,974,136‌)
Mischler
Financial
Group
Shares
......................................................................
(2‌)
—‌
Investor
A
.....................................................................................
(148‌)
(2,638‌)
Decrease
in
net
ass
ets
resulting
from
distributions
to
shareholders
...................................................
(1,241,789‌)
(10,598,159‌)
CAPITAL
SHARE
TRANSACTIONS
Net
increase
in
net
assets
derived
from
capital
share
transactions
...................................................
101,671,143‌
714,271,870‌
NET
ASSETS
Total
increase
in
net
assets
.............................................................................
101,009,751‌
715,000,198‌
Beginning
of
year
....................................................................................
1,114,930,274‌
399,930,076‌
End
of
year
........................................................................................
$
1,215,940,025‌
$
1,114,930,274‌
(a)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
Financial
Highlights
(For
a
share
outstanding
throughout
each
period)
13
Financial
Highlights
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
Institutional
Year
Ended
July
31,
Period
from
04/08/19
(a)
to
07/31/19
2021
2020
Net
asset
value,
beginning
of
period
...........................................................
$
1.0010‌
$
1.0001‌
$
1.0000‌
Net
investment
income
(b)
...................................................................
0.0005‌
0.0116‌
0.0072‌
Net
realized
and
unrealized
gain
(loss)
..........................................................
(0.000
3‌
)
0.0021‌
0.0002‌
Net
increase
from
investment
operations
..........................................................
0.000
2‌
0.0137‌
0.0074‌
Distributions
(c)
–
–
–
From
net
investment
income
................................................................
(0.0006‌)
(0.0128‌)
(0.0073‌)
From
net
realized
gain
.....................................................................
(0.0001‌)
(0.0000‌)
(d
)
—‌
Total
distributions
.........................................................................
(0.0007‌)
(0.0128‌)
(0.0073‌)
Net
asset
value,
end
of
period
................................................................
$
1.000
5‌
$
1.0010‌
$
1.0001‌
Total
Return
(e)
0.02%
1.38%
0.75%
Based
on
net
asset
value
....................................................................
0.02%
1.38%
0.75%
(f)
Ratios
to
Average
Net
Assets
Total
expenses
...........................................................................
0.24%
0.28%
0.30%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..................................................
0.17%
0.21%
0.19%
(h)
Net
investment
income
......................................................................
0.05%
1.16%
2.30%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
................................................................
$
322,578‌
$
227,698‌
$
65,788‌
(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
$(0.00005)
per
share.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Aggregate
total
return.
(g)
Audit
and
offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.37%.
(h)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Annual
Report
to
Shareholders
14
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
Direct
Year
Ended
July
31,
Period
from
04/08/19
(a)
to
07/31/19
2021
2020
Net
asset
value,
beginning
of
period
...........................................................
$
1.0010‌
$
1.0001‌
$
1.0000‌
Net
investment
income
(b)
...................................................................
0.0010‌
0.0125‌
0.0076‌
Net
realized
and
unrealized
gain
(loss)
.........................................................
(0.000
5‌
)
0.0021‌
0.0001‌
Net
increase
from
investment
operations
..........................................................
0.000
5‌
0.0146‌
0.0077‌
Distributions
(c)
–
–
–
From
net
investment
income
................................................................
(0.0009‌)
(0.0137‌)
(0.0076‌)
From
net
realized
gain
.....................................................................
(0.0001‌)
(0.0000‌)
(d)
—‌
Total
distributions
.........................................................................
(0.0010‌)
(0.0137‌)
(0.0076‌)
Net
asset
value,
end
of
period
................................................................
$
1.000
5‌
$
1.0010‌
$
1.0001‌
Total
Return
(e)
0.06%
1.47%
0.78%
Based
on
net
asset
value
....................................................................
0.06%
1.47%
0.78%
(f)
Ratios
to
Average
Net
Assets
Total
expenses
...........................................................................
0.18%
0.19%
0.22%
(g)(h)
Total
expenses
after
fees
waived
and/or
reimbursed
..................................................
0.14%
0.12%
0.09%
(h)
Net
investment
income
......................................................................
0.10%
1.25%
2.45%
(h)
Supplemental
Data
Net
assets,
end
of
period
(000)
................................................................
$
893,026‌
$
886,881‌
$
333,890‌
(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
$(0.00005)
per
share.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Aggregate
total
return.
(g)
Audit
and
offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.29%.
(h)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
15
Financial
Highlights
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
Mischler
Financial
Group
Shares
Period
from
05/20/21
(a)
to
07/31/21
Net
asset
value,
beginning
of
period
........................................................................................
$
1.0005‌
Net
investment
income
(b)
................................................................................................
0.0000‌
(c)
Net
realized
and
unrealized
gain
..........................................................................................
0.0000‌
(c)(d)
Net
increase
from
investment
operations
.......................................................................................
0.0000‌
Distributions
from
net
investment
income
(e)
...................................................................................
(0.0000‌)
(f)
Net
asset
value,
end
of
period
.............................................................................................
$
1.0005‌
Total
Return
(g)
—
Based
on
net
asset
value
.................................................................................................
0.00%
(h)(
i
)
Ratios
to
Average
Net
Assets
Total
expenses
........................................................................................................
0.26%
(j)
Total
expenses
after
fees
waived
and/or
reimbursed
...............................................................................
0.14%
(j)
Net
investment
income
...................................................................................................
0.02%
(j)
Supplemental
Data
Net
assets,
end
of
period
(000)
.............................................................................................
$
50‌
(a)
Commencement
of
operations.
(b)
Based
on
average
shares
outstanding.
(c)
Amount
is
less
than
$0.00005
per
share.
(d)
The
amounts
reported
for
a
share
outstanding
may
not
accord
with
the
change
in
aggregate
gains
and
losses
in
securities
for
the
fiscal
period
due
to
the
timing
of
capital
share
transactions
in
relation
to
the
fluctuating
market
values
of
the
Fund’s
underlying
securities.
(e)
Distributions
for
annual
periods
determined
in
accordance
with
U.S.
federal
income
tax
regulations.
(f)
Amount
is
greater
than
$(0.00005)
per
share.
(g)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(h)
Aggregate
total
return.
(i)
Amount
is
less
than
0.005%.
(j)
Annualized.
Financial
Highlights
(continued)
(For
a
share
outstanding
throughout
each
period)
2021
BlackRock
Annual
Report
to
Shareholders
16
See
notes
to
financial
statements.
BlackRock
Liquid
Environmentally
Aware
Fund
Investor
A
Year
Ended
July
31,
Period
from
04/08/19
(a)
to
07/31/19
2021
2020
Net
asset
value,
beginning
of
period
...........................................................
$
1.0010‌
$
1.0001‌
$
1.0000‌
Net
investment
income
(b)
...................................................................
0.0004‌
0.0098‌
0.0066‌
Net
realized
and
unrealized
gain
(loss)
.........................................................
(0.0004‌)
0.0015‌
0.0001‌
Net
increase
from
investment
operations
..........................................................
0.0000‌
0.0113‌
0.0067‌
Distributions
(c)
–
–
–
From
net
investment
income
................................................................
(0.0004‌)
(0.0104‌)
(0.0066‌)
From
net
realized
gain
.....................................................................
(0.0001‌)
(0.0000‌)
(
d)
—‌
Total
distributions
.........................................................................
(0.0005‌)
(0.0104‌)
(0.0066‌)
Net
asset
value,
end
of
period
................................................................
$
1.0005‌
$
1.0010‌
$
1.0001‌
Total
Return
(e)
—
1.13%
0.67%
Based
on
net
asset
value
....................................................................
0.00%
(f)
1.13%
0.67%
(g)
Ratios
to
Average
Net
Assets
Total
expenses
...........................................................................
0.61%
0.56%
0.58%
(h)(
i
)
Total
expenses
after
fees
waived
and/or
reimbursed
..................................................
0.19%
0.45%
0.44%
(
i
)
Net
investment
income
......................................................................
0.04%
0.98%
2.10%
(
i
)
Supplemental
Data
Net
assets,
end
of
period
(000)
................................................................
$
286‌
$
351‌
$
252‌
(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
$(0.00005)
per
share.
(e)
Where
applicable,
assumes
the
reinvestment
of
distributions.
(f)
Amount
is
less
than
0.005%.
(g)
Aggregate
total
return.
(h)
Audit
and
offering
costs
were
not
annualized
in
the
calculation
of
the
expense
ratios.
If
these
expenses
were
annualized,
the
total
expenses
would
have
been
0.65%.
(i)
Annualized.
Notes
to
Financial
Statements
17
Notes
to
Financial
Statements
1.
ORGANIZATION 
BlackRock
Funds
SM
 (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.
BlackRock
Liquid
Environmentally
Aware
Fund
(the
"Fund")
is
a
series
of
the
Trust.
The
Fund
is
classified
as
diversified.
Mischler
Financial
Group
Shares
commenced
operations
on
May
20,
2021.
The
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
Shares
are
sold
only
to
certain
eligible
investors.
Direct
Shares
are
generally
only
available
to
investors
on
eligible
electronic
platforms.
Investor
A
Shares
bear
certain
expenses
related
to
shareholder
servicing
of
such
shares.
Investor
A
Shares
are
generally
available
through
financial
intermediaries.
Mischler
Financial
Group
Shares
are
only
available
to
certain
clients
of
Mischler
Financial
Group,
Inc.
and
its
affiliates.
Each
class
has
exclusive
voting
rights
with
respect
to
matters
relating
to
its
shareholder
servicing
and
distribution
expenditures.
(a)
If
you
are
no
longer
a
client
of
Mischler
Financial
Group,
Inc.,
you
are
not
eligible
to
hold
Mischler
Financial
Group
Shares
and
any
Mischler
Financial
Group
Shares
you
hold
will
be
converted
to
Institutional
Shares
of
the
Fund.
The
Fund
prices
and
transacts
its
shares
at
a
net
asset
value
(“NAV”)
per
share
calculated
to
four
decimal
places,
reflecting
market-based
values
of
its
portfolio
holdings
(i.e.,
at
a
“floating”
NAV). 
The
Board
of
Trustees
of
the
Trust (the
"Board")
is
permitted
to
impose
a
liquidity
fee
of
up
to
2%
on
the
value
of
shares
redeemed
or
temporarily
restrict
redemptions
from
the
Fund
for
up
to
10
business
days
during
a
90
day
period,
in
the
event
that
the
Fund’s
weekly
liquid
assets
fall
below
certain
thresholds.
The
Fund,
together
with
certain
other
registered
investment
companies
advised
by
BlackRock
Advisors,
LLC
(the
"Manager") or
its
affiliates,
is
included
in
a
complex
of
equity,
multi-asset,
index
and
money
market
funds
referred
to
as
the
BlackRock
Multi-Asset
Complex.
2.
SIGNIFICANT
ACCOUNTING
POLICIES
The
financial
statements
are
prepared
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America
(“U.S.
GAAP”),
which
may
require
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
in
the
financial
statements,
disclosure
of
contingent
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
reported
amounts
of
increases
and
decreases
in
net
assets
from
operations
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
The
Fund
is
considered
an
investment
company
under
U.S.
GAAP
and
follows
the
accounting
and
reporting
guidance
applicable
to
investment
companies.
Below
is
a
summary
of
significant
accounting
policies: 
Investment
Transactions
and
Income
Recognition:
For
financial
reporting
purposes,
investment
transactions
are
recorded
on
the
dates
the
transactions
are
executed.
Realized
gains
and
losses
on
investment
transactions
are
determined
using
the
specific
identification
method.
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.
Distributions:
Distributions
from
net
investment
income
are
declared
daily
and
paid
monthly.
Distributions
of
capital
gains
are
distributed
at
least
annually
and
are
recorded
on
the
ex-dividend
dates.
The
character
and
timing
of
distributions
are
determined
in
accordance
with
U.S.
federal
income
tax
regulations,
which
may
differ
from
U.S.
GAAP
. 
Liquidity
Fees:
Any
liquidity
fees
imposed
on
the
value
of
shares
redeemed
in
the
event
that
the
Fund’s
weekly
liquid
assets
fall
below
certain
thresholds
are
recorded
as
paid-in-capital.
The
liquidity
fees
are
collected
and
retained
by
the
Fund
for
the
benefit
of the
Fund’s
remaining
interest
holders. 
Offering
Costs:
Offering
costs
are
amortized
over
a
12-month
period
beginning
with
the
commencement
of
operations
of
a
class
of
shares.  
Indemnifications:
In
the
normal
course
of
business,
the
Fund
enters
into
contracts
that
contain
a
variety
of
representations
that
provide
general
indemnification.
The
Fund’s
maximum
exposure
under
these
arrangements
is
unknown
because
it
involves
future
potential
claims
against
the
Fund,
which
cannot
be
predicted
with
any
certainty.
Other:
Expenses
directly
related
to the
Fund
or
its
classes
are
charged
to
the
Fund
or
the
applicable
class.
Expenses
directly
related
to
the
Fund
and
other
shared
expenses
prorated
to
the
Fund
are
allocated
daily
to
each
class
based
on
its
relative
net
assets
or
other
appropriate
methods.
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.  
3.
INVESTMENT
VALUATION
AND
FAIR
VALUE
MEASUREMENTS 
Investment
Valuation
Policies:
 The
Fund’s
investments
are
valued
at
fair
value
(also
referred
to
as
“market
value”
within
the
financial
statements)
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
a
fund
would
receive
to
sell
an
asset
or
pay
to
transfer
a
liability
in
an
orderly
transaction
between
market
participants
at
the
measurement
date.
The
Fund
determines
the
fair
values
of
its
financial
instruments
using
Share
Class
Initial
Sales
Charge
Contingent
Deferred
Sales
Charge
Conversion
Privilege
Institutional
Shares
...........................................
No
No
None
Direct
Shares
..............................................
No
No
None
Mischler
Financial
Group
Shares
..................................
No
No
None
(a)
Investor
A
Shares
............................................
No
No
None
Notes
to
Financial
Statements
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
18
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
the
Fund’s
assets
and
liabilities: 
Investments
are
valued
on
the
basis
of
prices
provided
by
dealers
or
pricing
services.
In
determining
the
value
of
a
particular
investment,
pricing
services
may
use
certain
information
with
respect
to
transactions
in
such
investments,
quotations
from
dealers,
pricing
matrixes,
market
transactions
in
comparable
investments
and
information
with
respect
to
various
relationships
between
investments. 
Fixed-income investments
for
which
market
quotations
are
readily
available
are
generally
valued
using
the
last
available
bid
price
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
unless
the
Manager
determines
such
method
does
not
represent
fair
value.
Repurchase
agreements
are
valued
at
amortized
cost,
which
approximates
market
value. 
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
the
Fund
has
the
ability
to
access;
Level
2
—
Other
observable
inputs
(including,
but
not
limited
to,
quoted
prices
for
similar
assets
or
liabilities
in
markets
that
are
active,
quoted
prices
for
identical
or
similar
assets
or
liabilities
in
markets
that
are
not
active,
inputs
other
than
quoted
prices
that
are
observable
for
the
assets
or
liabilities
(such
as
interest
rates,
yield
curves,
volatilities,
prepayment
speeds,
loss
severities,
credit
risks
and
default
rates)
or
other
market–corroborated
inputs);
and 
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. 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.
4.
SECURITIES
AND
OTHER
INVESTMENTS 
Repurchase
Agreements:
Repurchase
agreements
are
commitments
to
purchase
a
security
from
a
counterparty
who
agrees
to
repurchase
the
same
security
at
a
mutually
agreed
upon
date
and
price.
On
a
daily
basis,
the
counterparty
is
required
to
maintain
collateral
subject
to
the
agreement
and
in
value
no
less
than
the
agreed
upon
repurchase
amount.
Repurchase
agreements
may
be
traded
bilaterally,
in
a
tri-party
arrangement
or
may
be
centrally
cleared
through
a
sponsoring
agent.
Subject
to
the
custodial
undertaking
associated
with
a
tri-party
repurchase
arrangement
and
for
centrally
cleared
repurchase
agreements,
a
third
party
custodian
maintains
accounts
to
hold
collateral
for a
fund
and
its
counterparties.
Typically,
a
fund
and
counterparty
are
not
permitted
to
sell,
re-pledge
or
use
the
collateral
absent
a
default
by
the
counterparty
or the
fund,
respectively. 
In
the
event
the
counterparty
defaults
and
the
fair
value
of
the
collateral
declines,
a
fund
could
experience
losses,
delays
and
costs
in
liquidating
the
collateral.
Repurchase
agreements
are
entered
into
by a
fund
under
Master
Repurchase
Agreements
(each,
an
“MRA”).
The
MRA
permits the
fund,
under
certain
circumstances
including
an
event
of
default
(such
as
bankruptcy
or
insolvency),
to
offset
payables
and/or
receivables
with
collateral
held
by
and/or
posted
to
the
counterparty.
As
a
result,
one
single
net
payment
is
created.
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.
Based
on
the
terms
of
the
MRA, the
fund
receives
collateral
with
a
market
value
in
excess
of
the
repurchase
price
at
maturity.
Upon
a
bankruptcy
or
insolvency
of
the
MRA
counterparty,
the
fund
would
recognize
a
liability
with
respect
to
such
excess
collateral.
The
liability
reflects
the
fund’s
obligation
under
bankruptcy
law
to
return
the
excess
to
the
counterparty. 
5.
INVESTMENT
ADVISORY
AGREEMENT
AND
OTHER
TRANSACTIONS
WITH
AFFILIATES 
Investment
Advisory:
The
Trust,
on
behalf
of
the
Fund,
entered
into
an
Investment
Advisory
Agreement
with
the
Manager,
the
Fund’s
investment
adviser
and
an
indirect,
wholly-owned
subsidiary
of
BlackRock,
Inc.
(“BlackRock”)
,
to
provide
investment
advisory
services.
The
Manager
is
responsible
for
the
management
of the
Fund’s
portfolio
and
provides
the
personnel,
facilities,
equipment
and
certain
other
services
necessary
to
the
operations
of the
Fund.
For
such
services,
the
Fund
pays
the
Manager
a
monthly
fee
at
an
annual
rate
equal
to
0.10%
of
the
average
daily
value
of
the
Fund’s
net
assets.
Notes
to
Financial
Statements
(continued)
19
Notes
to
Financial
Statements
The
Manager
entered
into
a
sub-advisory
agreement,
effective
February
26,
2021,
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
the
Fund
for
which
BIL
acts
as
sub-adviser,
a
monthly
fee
that
is
equal
to
a
percentage
of
the
investment
advisory
fees
paid
by
the
Fund
to
the
Manager.
Service
Fees:
 The
Trust
,
on behalf
of
the
Fund,
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,
the
Fund
pays
BRIL
ongoing
service
fees.
The
fees
are
accrued
daily
and
paid
monthly
at
annual
rate
of
0.25%
based
upon
the
average
daily
net
assets
attributable
to
Investor
A
shares.
BRIL
and
broker-dealers,
pursuant
to
sub-agreements
with
BRIL,
provide
shareholder
servicing
to
the
Fund.
The
ongoing
service
fee compensates
BRIL
and
each
broker-
dealer
for
providing
shareholder
servicing
related
services
to
shareholders.
For
the year
ended
July
31,
2021,
the
class
specific
service
fees
borne
directly
by
Investor
A
Shares
were
$718.
Administration:
The
Trust,
on
behalf
of
the
Fund,
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
the
Fund.
The
Manager
charges
each
of
the
share
classes
an
administration
fee,
which
is
shown
as
administration
–
class
specific
in
the
Statement
of
Operations,
at
an
annual
rate
of
0.10%
of
the
average
daily
net
assets
for
Institutional
Shares,
Investor
A
Shares
and
Mischler
Financial
Group
Shares
and
0.04%
of
the
average
daily
net
assets
for
Direct
Shares.
For
the
year
ended
July
31,
2021, the
following
table
shows
the
class
specific
administration
fees
borne
directly
by
each
share
class
of
the
Fund:
Transfer
Agent:
Pursuant
to
written
agreements,
certain
financial
intermediaries,
some
of
which
may
be
affiliates,
provide
the
Fund
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 July
31,
2021,
the
Fund
did
not
pay
any
amounts
to
affiliates
in
return
for
these
services.
For
the
year
ended
July
31,
2021,
the
following
table
shows
the
class
specific
transfer
agent
fees
borne
directly
by
each
share
class
of
the
Fund:
Expense
Limitations,
Waivers
and
Reimbursements:
BlackRock
has
contractually
agreed
to
waive
and/or
reimburse
fees
or
expenses
in
order
to
limit
Miscellaneous
Other
Expenses
of
the
Fund
,
excluding
Dividend
Expense,
Interest
Expense,
Acquired
Fund
Fees
and
Expenses
and
certain
other
Fund
e
xpenses
,
which
constitute
extraordinary
expenses
not
incurred
in
the
ordinary
course
of
the
Fund’s
business
(“expense
limit
ation”).
The
expense
limitation
as
a
percentage
of
average
daily
net
assets
is
0.00%
for
the
Institutional
shares,
Direct
shares,
Mischler
Financial
Group
shares
and
Investor
A
Shares
through
November
30,
2031.
This
agreement
may
be
terminated
upon
90
days'
notice
by
a
majority
of
the
non-interested
trustees
of
the
Trust
or
by
a
vote
of
a
majority
of
the
outstanding
voting
securities
of
the
Fund.
For
the
year
ended
July
31,
2021,
the
Manager
waived
and/or
reimbursed
$548,932,
which
is
included
in
fees
waived
and/or
reimbursed
by
the
Manager
and
$1,813,
which
is
included
in
transfer
agent
fees
waived
and/or
reimbursed
-
class
specific,
respectively,
in
the
Statement
of
Operations.
The
Manager
and
BRIL
have
also
voluntarily
agreed
to
waive
a
portion
of
their
respective
administration
and
service
and
distribution
fees
and/or
reimburse
operating
expenses
to
enable
the
Fund
to
maintain
minimum
levels
of
daily
net
investment
income
if
applicable.
These
amounts,
if
any,
are
reported
in
the
Statement
of
Operations
as
administration
fees
waived
—
class
specific,
service
and
distribution
fees
waived
and/or
reimbursed —
class
specific.
The
Manager
and
BRIL
may
discontinue
the
waiver
and/or
reimbursement
at
any
time.
For
the
year ended
July
31,
2021,
class
specific
expense
waivers
and/or
reimbursements were
as
follows: 
Institutional
.......................................................................................................
$
306,288‌
Direct
...........................................................................................................
382,660‌
Mischler
Financial
Group
Shares
........................................................................................
10‌
Investor
A
........................................................................................................
286‌
$
689,244‌
Institutional
.......................................................................................................
$
1,037‌
Direct
...........................................................................................................
427‌
Investor
A
........................................................................................................
349‌
$
1,813‌
Fund
Name/Share
Class
Administration
Fees
Waived
Service
and
Distribution
Fees
Waived
and/or
Reimbursed
BlackRock
Liquid
Environmentally
Aware
Fund
Institutional
....................................................................................
$
80,368‌
$
—‌
Direct
........................................................................................
33,707‌
—‌
Mischler
Financial
Group
Shares
.....................................................................
7‌
—‌
Investor
A
.....................................................................................
36‌
705‌
$
114,118‌
$
705‌
Notes
to
Financial
Statements
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
20
Interfund
Lending:
In
accordance
with
an
exemptive
order
(the
“Order”)
from
the
U.S.
Securities
and
Exchange
Commission
(“SEC”),
the
Fund
may
participate
in
a
joint
lending
and
borrowing
facility
for
temporary
purposes
(the
“Interfund
Lending
Program”),
subject
to
compliance
with
the
terms
and
conditions
of
the
Order,
and
to
the
extent
permitted
by
the
Fund’s
investment
policies
and
restrictions.
The
Fund
is
currently
permitted
to
borrow
and
lend 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
July
31,
2021,
the
Fund
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
Fund
reimburses
the
Manager
for
a
portion
of
the
compensation
paid
to
the 
Fund's
Chief
Compliance
Officer,
which
is
included
in
Trustees and
Officer
in
the
Statement
of
Operations. 
6.
INCOME
TAX
INFORMATION 
It
is
the
Fund’s
policy
to
comply
with
the
requirements
of
the
Internal
Revenue
Code
of
1986,
as
amended,
applicable
to
regulated
investment
companies,
and
to
distribute
substantially
all
of
its
taxable
income
to
its
shareholders.
Therefore,
no
U.S.
federal
income
tax
provision
is
required. 
The
Fund
files
U.S.
federal
and
various
state
and
local
tax
returns.
No
income
tax
returns
are
currently
under
examination.
The
statute
of
limitations
on
the
Fund's
U.S.
federal
tax
returns
generally
remains
open
for
a
period
of
three
fiscal
years
after
they
are
filed.
The
statutes
of
limitations
on
the
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 Fund
as
of
July
31,
2021,
inclusive
of
the
open
tax
return
years,
and
does
not
believe
that
there
are
any
uncertain
tax
positions
that
require
recognition
of
a
tax
liability
in
the
Fund's
financial
statements.
U.S.
GAAP
requires
that
certain
components
of
net
assets
be
adjusted
to
reflect
permanent
differences
between
financial
and
tax
reporting.
These
reclassifications
have
no
effect
on
net
assets
or
NAVs
per
share.
As
of
period
end,
the
following
permanent
difference
attributable
to
non-deductible
expenses
was
reclassified
to
the
following
accounts:
The
tax
character
of
distributions
paid
was
as
follows: 
As
of
period
end,
the
tax
components
of
accumulated earnings
(loss) were
as
follows:  
7.
 PRINCIPAL
RISKS 
In
the
normal
course
of
business,
the
Fund
invests
in
securities
or
other
instruments
and
may
enter
into
certain
transactions,
and
such
activities
subject
the
Fund
to
various
risks,
including
among
others,
fluctuations
in
the
market
(market
risk)
or
failure
of
an
issuer
to
meet
all
of
its
obligations.
The
value
of
securities
or
other
instruments
may
also
be
affected
by
various
factors,
including,
without
limitation:
(i)
the
general
economy;
(ii)
the
overall
market
as
well
as
local,
regional
or
global
political
and/or
social
instability;
(iii)
regulation,
taxation
or
international
tax
treaties
between
various
countries;
or
(iv)
currency,
interest
rate
and
price
fluctuations.
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
Fund
and its
investments.
The
Fund’s
prospectus
provides
details
of
the
risks
to
which
the
Fund
is
subject. 
Certain
obligations
held
by
the
Fund
have
a
credit
enhancement
or
liquidity
feature
that
may,
under
certain
circumstances,
provide
for
repayment
of
principal
and
interest
on
the
obligation
when
due. These
enhancements,
which
may
include
letters
of
credit,
stand-by
bond
purchase
agreements
and/or
third
party
insurance,
are
issued
by
financial
institutions. The
value
of
the
obligations
may
be
affected
by
changes
in
creditworthiness
of
the
entities
that
provide
the
credit
enhancements
or
liquidity
features. The
Fund
monitors
its
exposure
by
reviewing
the
creditworthiness
of
the
issuers,
as
well
as
the
financial
institutions
issuing
the
credit
enhancements
and
by
limiting
the
amount
of
holdings
with
credit
enhancements
from
one
financial
institution. 
Fund
Name
Paid-in
Capital
Accumulated
Earnings
(Loss)
BlackRock
Liquid
Environmentally
Aware
Fund
........................................................................
$
(9,273)
9,273
test
Fu
n
d
Name
Year
Ended
07/31/21
Year
Ended
07/31/20
BlackRock
Liquid
Environmentally
Aware
Fund
Ordinary
income
............................................................................................
$
1,241,789
10,598,159
Fund
Name
Undistributed
Ordinary
Income
Net
Unrealized
Gains
(Losses)
Total
BlackRock
Liquid
Environmentally
Aware
Fund
.......................................................
$
130,339‌
$
115,509‌
$
245,848‌
Notes
to
Financial
Statements
(continued)
21
Notes
to
Financial
Statements
Market Risk:
The
Fund
may
be
exposed
to
prepayment
risk,
which
is
the
risk
that
borrowers
may
exercise
their
option
to
prepay
principal
earlier
than
scheduled
during
periods
of
declining
interest
rates,
which
would
force
the
Fund
to
reinvest
in
lower
yielding
securities. The
Fund
may
also
be
exposed
to
reinvestment
risk,
which
is
the
risk
that
income
from
the
Fund’s
portfolio
will
decline
if
the Fund
invests
the
proceeds
from
matured,
traded
or
called
fixed-income
securities
at
market
interest
rates
that
are
below
the
Fund
portfolio’s
current
earnings
rate.
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.
Counterparty
Credit
Risk:
The
Fund
may
be
exposed
to
counterparty
credit
risk,
or
the
risk
that
an
entity
may
fail
to
or
be
unable
to
perform
on
its
commitments
related
to
unsettled
or
open
transactions,
including
making
timely
interest
and/or
principal
payments
or
otherwise
honoring
its
obligations.
The
Fund
manages
counterparty
credit
risk
by
entering
into
transactions
only
with
counterparties
that
the
Manager
believes
have
the
financial
resources
to
honor
their
obligations
and
by
monitoring
the
financial
stability
of
those
counterparties.
Financial
assets,
which
potentially
expose
the
Fund
to
market,
issuer
and
counterparty
credit
risks,
consist
principally
of
financial
instruments
and
receivables
due
from
counterparties.
The
extent
of
the
Fund’s
exposure
to
market,
issuer
and
counterparty
credit
risks
with
respect
to
these
financial
assets
is
approximately
their
value
recorded
in
the
Statement
of
Assets
and
Liabilities,
less
any
collateral
held
by
the
Fund. 
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
the
Fund's
portfolio
are
disclosed
in
its Schedule
of
Investments.
The
Fund
invests
a
significant
portion
of
its
assets
in
fixed-income
securities
and/or
uses
derivatives
tied
to
the
fixed-income
markets.
Changes
in
market
interest
rates
or
economic
conditions
may
affect
the
value
and/or
liquidity
of
such
investments.
Interest
rate
risk
is
the
risk
that
prices
of
bonds
and
other
fixed-income
securities
will
increase
as
interest
rates
fall
and
decrease
as
interest
rates
rise.
The
Funds
may
be
subject
to
a
greater
risk
of
rising
interest
rates
due
to
the
current
period
of
historically
low
rates.
The
Fund
invests
a
significant
portion
of
its
assets
in
securities
of
issuers
located
in
Europe
or
with
significant
exposure
to
European
issuers
or
countries.
The
European
financial
markets
have
recently
experienced
volatility
and
adverse
trends
due
to
concerns
about
economic
downturns
in,
or
rising
government
debt
levels
of,
several
European
countries.
These
events
may
spread
to
other
countries
in
Europe
and
may
affect
the
value
and
liquidity
of
certain
of
the
Fund’s
investments. 
Responses
to
the
financial
problems
by
European
governments,
central
banks
and
others,
including
austerity
measures
and
reforms,
may
not
work,
may
result
in
social
unrest
and
may
limit
future
growth
and
economic
recovery
or
have
other
unintended
consequences.
Further
defaults
or
restructurings
by
governments
and
others
of
their
debt
could
have
additional
adverse
effects
on
economies,
financial
markets
and
asset
valuations
around
the
world.
In
addition,
the
United
Kingdom
has
withdrawn
from
the
European
Union,
and
one
or
more
other
countries
may
withdraw
from
the
European
Union
and/or
abandon
the
Euro,
the
common
currency
of
the
European
Union.
The
impact
of
these
actions,
especially
if
they
occur
in
a
disorderly
fashion,
is
not
clear
but
could
be
significant
and
far
reaching. 
LIBOR
Transition
Risk:
The
United
Kingdom’s
Financial
Conduct
Authority
announced
a phase
out of
the
London
Interbank
Offered
Rate
(“LIBOR”).
Although
many
LIBOR
rates
will
be
phased
out
by
the
end
of
2021,
a
selection
of
widely
used
USD
LIBOR
rates
will
continue
to
be
published
through
June
2023
in
order
to
assist
with
the
transition.
The
Fund
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
Fund
is
uncertain. 
Notes
to
Financial
Statements
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
22
8.
CAPITAL
SHARE
TRANSACTIONS 
The
number
of
shares
sold,
reinvested
and
redeemed
for
the
Fund
were
transacted
at
each
class’s
floating
NAV
per
share
calculated
to
four
decimal
places.
Transactions
in
capital
shares
for
each
class
were
as
follows:
(a)
Commenced
operations
on
May
20,
2021.
As
of
July
31,
2021,
shares
owned
by
BlackRock
Financial
Management,
Inc.,
an
affiliate
of
the
Fund,
were
as
follows:
9.
SUBSEQUENT
EVENTS 
Management
has
evaluated
the
impact
of
all
subsequent
events
on
the
Fund
through
the
date
the
financial
statements
were
issued
and
has
determined
that
there
were
no
subsequent
events
requiring
adjustment
or
additional
disclosure
in
the
financial
statements.
Year
Ended
07/31/21
Year
Ended
07/31/20
Fund
Name/Share
Class
Shares
Amount
Shares
Amount
BlackRock
Liquid
Environmentally
Aware
Fund
Institutional
Shares
sold
.............................................
693,934,316‌
$
694,340,786‌
410,552,899‌
$
410,794,281‌
Shares
issued
in
reinvestment
of
distributions
........................
165,262‌
165,583‌
1,290,760‌
1,291,293‌
Shares
redeemed
.........................................
(599,148,328‌)
(599,477,560‌)
(250,151,802‌)
(250,259,085‌)
94,951,250‌
$
95,028,809‌
161,691,857‌
$
161,826,489‌
Direct
Shares
sold
.............................................
211,623,833‌
$
211,794,207‌
722,335,509‌
$
722,541,326‌
Shares
issued
in
reinvestment
of
distributions
........................
714,363‌
714,861‌
5,035,223‌
5,037,371‌
Shares
redeemed
.........................................
(205,736,455‌)
(205,851,843‌)
(175,230,492‌)
(175,232,603‌)
6,601,741‌
$
6,657,225‌
552,140,240‌
$
552,346,094‌
Mischler
Financial
Group
Shares
(a)
Shares
sold
.............................................
49,975‌
$
50,000‌
—
—
Shares
issued
in
reinvestment
of
distributions
........................
2‌
2‌
—
—
49,977‌
$
50,002‌
—
—
Investor
A
Shares
sold
and
automatic
conversion
of
shares
......................
1,295‌
$
1,296‌
100,336‌
$
100,449‌
Shares
issued
in
reinvestment
of
distributions
........................
4‌
4‌
1,426‌
1,427‌
Shares
redeemed
.........................................
(66,
1
08‌
)
(6
6,193‌
)
(2,587‌)
(2,589‌)
(64,809‌)
$
(64,893‌)
99,175‌
$
99,287‌
101,538,159‌
$
101,671,143‌
713,931,272‌
$
714,271,870‌
Institutional
.......................................................................................................
253,456‌
Direct
...........................................................................................................
249,500,000‌
Investor
A
........................................................................................................
253,048‌
Report
of
Independent
Registered
Public
Accounting
Firm
23
Report
of
Independent
Registered
Public
Accounting
Firm
To
the
Shareholders
of
BlackRock
Liquid
Environmentally
Aware
Fund
and
the
Board
of
Trustees
of
BlackRock
Funds
SM
:
Opinion
on
the
Financial
Statements
and
Financial
Highlights
We
have
audited
the
accompanying
statement
of
assets
and
liabilities
of
BlackRock
Liquid
Environmentally
Aware
Fund
of
BlackRock
Funds
SM
(the
“Fund”),
including
the
schedule
of
investments,
as
of
July
31,
2021,
the
related
statement
of
operations
for
the
year
then
ended,
the
statements
of
changes
in
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
the
financial
highlights
for
each
of
the
two
years
in
the
period
then
ended
and
for
the
period
from
April
8,
2019
(commencement
of
operations)
through
July
31,
2019,
and
the
related
notes.
In
our
opinion,
the
financial
statements
and
financial
highlights
present
fairly,
in
all
material
respects,
the
financial
position
of
the
Fund
as
of
July
31,
2021,
and
the
results
of
its
operations
for
the
year
then
ended,
the
changes
in
its
net
assets
for
each
of
the
two
years
in
the
period
then
ended,
and
the
financial
highlights
for
each
of
the
two
years
in
the
period
then
ended
and
for
the
period
from
April
8,
2019
(commencement
of
operations)
through
July
31,
2019,
in
conformity
with
accounting
principles
generally
accepted
in
the
United
States
of
America.
Basis
for
Opinion
These
financial
statements
and
financial
highlights
are
the
responsibility
of
the
Fund’s
management.
Our
responsibility
is
to
express
an
opinion
on
the
Fund’s
financial
statements
and
financial
highlights
based
on
our
audits.
We
are
a
public
accounting
firm
registered
with
the
Public
Company
Accounting
Oversight
Board
(United
States)
(PCAOB)
and
are
required
to
be
independent
with
respect
to
the
Fund
in
accordance
with
the
U.S.
federal
securities
laws
and
the
applicable
rules
and
regulations
of
the
Securities
and
Exchange
Commission
and
the
PCAOB.
We
conducted
our
audits
in
accordance
with
the
standards
of
the
PCAOB.
Those
standards
require
that
we
plan
and
perform
the
audit
to
obtain
reasonable
assurance
about
whether
the
financial
statements
and
financial
highlights
are
free
of
material
misstatement,
whether
due
to
error
or
fraud.
The
Fund
is
not
required
to
have,
nor
were
we
engaged
to
perform,
an
audit
of
its
internal
control
over
financial
reporting.
As
part
of
our
audits
we
are
required
to
obtain
an
understanding
of
internal
control
over
financial
reporting
but
not
for
the
purpose
of
expressing
an
opinion
on
the
effectiveness
of
the
Fund’s
internal
control
over
financial
reporting.
Accordingly,
we
express
no
such
opinion.
Our
audits
included
performing
procedures
to
assess
the
risks
of
material
misstatement
of
the
financial
statements
and
financial
highlights,
whether
due
to
error
or
fraud,
and
performing
procedures
that
respond
to
those
risks.
Such
procedures
included
examining,
on
a
test
basis,
evidence
regarding
the
amounts
and
disclosures
in
the
financial
statements
and
financial
highlights.
Our
audits
also
included
evaluating
the
accounting
principles
used
and
significant
estimates
made
by
management,
as
well
as
evaluating
the
overall
presentation
of
the
financial
statements
and
financial
highlights.
Our
procedures
included
confirmation
of
securities
owned
as
of
July
31,
2021,
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
September
21,
2021
We
have
served
as
the
auditor
of
one
or
more
BlackRock
investment
companies
since
1992.
Important
Tax
Information
(unaudited)
2021
BlackRock
Annual
Report
to
Shareholders
24
The
Fund
hereby
designates
the
followin
g
amount(s),
or
maximum
amount(s)
allowable
by
law, of
distributions
from
direct
federal
obligation
interest
for
the
fiscal
year
ended
July
31,
2021:
The
law
varies
in
each
state
as
to
whether
and
what
percent
of
ordinary
income
dividends
attributable
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.
The
Fund
hereby
designates
the
following
amount(s),
or
maximum
amount(s)
allowable
by
law,
as
interest
income
eligible
to
be
treated
as
a
Section
163(j)
interest
dividend
for
the
fiscal
year
ended
July
31,
2021:
The
Fund
hereby
designates
the
following
amount(s),
or
maximum
amount(s)
allowable
by
law,
as
interest-related
dividends
and
qualified
short-term
capital
gains
eligible
for
exemption
from
U.S.
withholding
tax
for
nonresident
aliens
and
foreign
corporations
for
the
fiscal
year
ended
July
31,
2021:
Fund
Name
Federal
Obligation
Interest
BlackRock
Liquid
Environmentally
Aware
Fund
...............................................................................
$
5
0
,
527
Fund
Name
Interest
Dividends
BlackRock
Liquid
Environmentally
Aware
Fund
...............................................................................
$
1,092,
01
5
Fund
Name
Interest-Related
Dividends
Qualified
Short-Term
Capital
Gains
BlackRock
Liquid
Environmentally
Aware
Fund
............................................................
$
444,329
$
143,234
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
25
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
The
Board
of
Trustees
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Funds
SM
(the
“Trust”)
met
on
April
7,
2021
(the
“April
Meeting”)
and
May
10-12,
2021
(the
“May
Meeting”)
to
consider
the
approval
to
continue
the
investment
advisory
agreement
(the
“Advisory
Agreement”)
between
the
Trust,
on
behalf
of
BlackRock
Liquid
Environmentally
Aware
Fund
(the
“Fund”),
and
BlackRock
Advisors,
LLC
(the
“Manager”),
the
Fund’s
investment
advisor.
The
Board
also
considered
the
approval
of
the
sub-advisory
agreement
(the
“Sub-Advisory
Agreement”)
between
the
Manager
and
BlackRock
International
Limited
(the
“Sub-Advisor”)
with
respect
to
the
Fund.
The
Manager
and
the
Sub-Advisor
are
referred
to
herein
as
“BlackRock.”
The
Advisory
Agreement
and
the
Sub-Advisory
Agreement
are
referred
to
herein
as
the
“Agreements.”
The
Approval
Process:
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
the
Board
considers
the
approval
of
the
continuation
of
the
Agreements
for
the
Fund
on
an
annual
basis.
The
Board
members
whom
are
not
“interested
persons”
of
the
Trust,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board’s
consideration
entailed
a
year-long
deliberative
process
during
which
the
Board
and
its
committees
assessed
BlackRock’s
various
services
to
the
Fund,
including
through
the
review
of
written
materials
and
oral
presentations,
and
the
review
of
additional
information
provided
in
response
to
requests
from
the
Independent
Board
Members.
The
Board
had
four
quarterly
meetings
per
year,
each
typically
extending
for
two
days,
as
well
as
additional
ad
hoc
meetings
and
executive
sessions
throughout
the
year,
as
needed.
The
committees
of
the
Board
similarly
met
throughout
the
year.
The
Board
also
had
a
fifth
one-day
meeting
to
consider
specific
information
surrounding
the
renewal
of
the
Agreements.
In
particular,
the
Board
assessed,
among
other
things,
the
nature,
extent
and
quality
of
the
services
provided
to
the
Fund
by
BlackRock,
BlackRock’s
personnel
and
affiliates,
including
(as
applicable):
investment
management
services;
accounting
oversight;
administrative
and
shareholder
services;
oversight
of
the
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,
considered
information
that
was
relevant
to
its
annual
consideration
of
the
renewal
of
the
Agreements,
including
the
services
and
support
provided
by
BlackRock
to
the
Fund
and
its
shareholders.
BlackRock
also
furnished
additional
information
to
the
Board
in
response
to
specific
questions
from
the
Board.
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,
relevant
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
the
Fund
for
services;
(c)
Fund
operating
expenses
and
how
BlackRock
allocates
expenses
to
the
Fund;
(d)
the
resources
devoted
to,
risk
oversight
of,
and
compliance
reports
relating
to,
implementation
of
the
Fund’s
investment
objective,
policies
and
restrictions,
and
meeting
regulatory
requirements;
(e)
BlackRock’s
and
the
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,
as
available;
(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
the
Fund’s
valuation
and
liquidity
procedures;
(k)
an
analysis
of
management
fees
paid
to
BlackRock
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
the
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.
Prior
to
and
in
preparation
for
the
April
Meeting,
the
Board
received
and
reviewed
materials
specifically
relating
to
the
renewal
of
the
Agreements.
The
Independent
Board
Members
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
the
Fund’s
fees
and
expenses
as
compared
with
a
peer
group
of
funds
as
determined
by
Broadridge
(“Expense
Peers”)
and
the
investment
performance
of
the
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
the
Fund;
(g)
a
summary
of
aggregate
amounts
paid
by
the
Fund
to
BlackRock;
(h)
sales
and
redemption
data
regarding
the
Fund’s
shares;
and
(i)
various
additional
information
requested
by
the
Board
as
appropriate
regarding
BlackRock's
and
the
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.
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
the
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
the
Fund;
(d)
the
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
the
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
members
of
the
Board
gave
attention
to
all
of
the
information
that
was
furnished,
and
each
Board
Member
placed
varying
degrees
of
importance
on
the
various
pieces
of
information
that
were
provided
to
them.
The
Board
evaluated
the
information
available
to
it
on
a
fund
by
fund
basis.
The
following
paragraphs
provide
more
information
about
some
of
the
primary
factors
that
were
relevant
to
the
Board’s
decision.
The
Board
Members
did
not
identify
any
particular
information,
or
any
single
factor
as
determinative,
and
each
Board
Member
may
have
attributed
different
weights
to
the
various
items
and
factors
considered.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
26
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
the
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
the
Fund’s
portfolio
management
team
discussing
the
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
the
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
the
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
the
Fund.
BlackRock
and
its
affiliates
provide
the
Fund
with
certain
administrative,
shareholder
and
other
services
(in
addition
to
any
such
services
provided
to
the
Fund
by
third
parties)
and
officers
and
other
personnel
as
are
necessary
for
the
operations
of
the
Fund.
In
particular,
BlackRock
and
its
affiliates
provide
the
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,
the
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
the
Fund,
such
as
tax
reporting,
expense
management,
fulfilling
regulatory
filing
requirements,
overseeing
the
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
and
compliance
departments
and
considered
BlackRock’s
policies
and
procedures
for
assuring
compliance
with
applicable
laws
and
regulations.
The
Board
considered
the
operation
of
BlackRock’s
business
continuity
plans,
including
in
light
of
the
ongoing
COVID-19
pandemic.
B.
The
Investment
Performance
of
the
Fund
and
BlackRock:
The
Board,
including
the
Independent
Board
Members,
reviewed
and
considered
the
performance
history
of
the
Fund
throughout
the
year
and
at
the
April
Meeting.
In
preparation
for
the
April
Meeting,
the
Board
was
provided
with
reports
independently
prepared
by
Broadridge,
which
included
an
analysis
of
the
Fund’s
performance
as
of
December
31,
2020,
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
the
Fund
as
compared
to
its
Performance
Peers
and
a
weighted
average
benchmark
of
similar
funds,
as
defined
by
BlackRock
(“Benchmark
Weighted
Average”).
The
Board
and
its
Performance
Oversight
Committee
regularly
review
and
meet
with
Fund
management
to
discuss
the
performance
of
the
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
reviewed
the
Fund’s
performance
within
the
context
of
the
low
yield
environment.
In
addition
to
reviewing
the
Fund’s
performance
and
current
yield,
it
also
reviews
the
liquidity,
duration,
credit
quality
and
other
risk
factors
of
the
Fund’s
portfolio.
The
Board
noted
that
for
the
one-year
period
reported,
the
Fund
outperformed
against
its
Benchmark
Weighted
Average.
The
Board
noted
that
BlackRock
believes
that
the
Benchmark
Weighted
Average
is
an
appropriate
performance
metric
for
the
Fund,
and
that
BlackRock
has
explained
its
rationale
for
this
belief
to
the
Board.
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
the
Fund:
The
Board,
including
the
Independent
Board
Members,
reviewed
the
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
the
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).
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
the
Fund.
The
Board
reviewed
BlackRock’s
estimated
profitability
with
respect
to
the
Fund
and
other
funds
the
Board
currently
oversees
for
the
year
ended
December
31,
2020
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.
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
(continued)
27
Disclosure
of
Investment
Advisory
Agreement
and
Sub-Advisory
Agreement
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
the
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
reviewed
the
expenses
within
the
context
of
the
low
yield
environment,
and
any
consequent
expense
waivers
and
reimbursements
necessary
to
maintain
minimum
levels
of
daily
net
investment
income,
as
applicable.
The
Board
noted
that
the
Fund’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
Fund’s
Expense
Peers.
In
addition,
the
Board
noted
that,
the
Fund
is
party
to
an
expense
limitation
agreement
pursuant
to
which
BlackRock
has
agreed
to
waive
and/or
reimburse
certain
operating
and
other
expenses
to
a
specified
amount
of
the
Fund’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
the
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
the
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
the
Fund
to
more
fully
participate
in
these
economies
of
scale.
The
Board
considered
the
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
the
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
the
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
the
Fund’s
fees
and
expenses
are
too
high
or
if
they
are
dissatisfied
with
the
performance
of
the
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
the
Fund,
for
a
one-year
term
ending
June
30,
2022,
and
the
Sub-Advisory
Agreement
between
the
Manager
and
the
Sub-Advisor,
with
respect
to
the
Fund,
for
a
one-year
term
ending
June
30,
2022.
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
the
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
Investment
Sub-Advisory
Agreement
2021
BlackRock
Annual
Report
to
Shareholders
28
The
Board
of
Trustees
(the
“Board,”
the
members
of
which
are
referred
to
as
“Board
Members”)
of
BlackRock
Funds
(the
“Trust”)
met
on
February
8-10,
2021
(the
“Meeting”)
to
consider
the
initial
approval
of
the
proposed
sub-advisory
agreement
(the
“Sub-Advisory
Agreement”)
between
BlackRock
Advisors,
LLC
(the
“Manager”),
the
Trust’s
investment
advisor,
and
BlackRock
International
Limited
(the
“Sub-Advisor”)
with
respect
to
BlackRock
Liquid
Environmentally
Aware
Fund
(the
“Fund”),
a
series
of
the
Trust.
Consistent
with
the
requirements
of
the
Investment
Company
Act
of
1940
(the
“1940
Act”),
at
the
Meeting,
the
Board
reviewed
materials
relating
to
its
consideration
of
the
Sub-Advisory
Agreement.
The
Board
Members
whom
are
not
“interested
persons”
of
the
Fund,
as
defined
in
the
1940
Act,
are
considered
independent
Board
members
(the
“Independent
Board
Members”).
The
Board
previously
met
on
May
11-13,
2020
(the
“May
2020
Meeting”)
to
consider
the
approval
of
the
continuation
of
the
Trust’s
investment
advisory
agreement
(the
“Advisory
Agreement”)
between
the
Trust
and
the
Manager.
At
the
May
2020
Meeting,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
continuation
of
the
Advisory
Agreement
for
a
one-year
term
ending
June
30,
2021.
A
discussion
of
the
basis
for
the
Board’s
approval
of
the
Advisory
Agreement
at
the
May
2020
Meeting
is
included
in
the
semi-annual
shareholder
report
for
the
Fund
for
the
period
ended
July
31,
2020.
The
factors
considered
by
the
Board
at
the
Meeting
in
connection
with
the
approval
of
the
proposed
Sub-Advisory
Agreement
were
substantially
the
same
as
the
factors
considered
at
the
May
2020
Meeting
with
respect
to
approval
of
the
Advisory
Agreement.
Following
discussion,
the
Board,
including
the
Independent
Board
Members,
unanimously
approved
the
Sub-Advisory
Agreement
between
the
Manager
and
the
Sub-Advisor,
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,
as
well
as
other
information,
the
Board,
including
a
majority
of
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
29
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
Mark
Stalnecker
1951
Chair
of
the
Board
(Since
2019)
and
Trustee
(Since
2015)
Chief
Investment
Officer,
University
of
Delaware
from
1999
to
2013;
Trustee
and
Chair
of
the
Finance
and
Investment
Committees,
Winterthur
Museum
and
Country
Estate
from
2005
to
2016;
Member
of
the
Investment
Committee,
Delaware
Public
Employees’
Retirement
System
since
2002;
Member
of
the
Investment
Committee,
Christiana
Care
Health
System
from
2009
to
2017;
Member
of
the
Investment
Committee,
Delaware
Community
Foundation
from
2013
to
2014;
Director
and
Chair
of
the
Audit
Committee,
SEI
Private
Trust
Co.
from
2001
to
2014.
30
RICs
consisting
of
152
Portfolios
None
Bruce
R.
Bond
1946
Trustee
(Since
2019)
Board
Member,
Amsphere
Limited
(software)
since
2018;
Trustee
and
Member
of
the
Governance
Committee,
State
Street
Research
Mutual
Funds
from
1997
to
2005;
Board
Member
of
Governance,
Audit
and
Finance
Committee,
Avaya
Inc.
(computer
equipment)
from
2003
to
2007.
30
RICs
consisting
of
152
Portfolios
None
Susan
J.
Carter
1956
Trustee
(Since
2016)
Director,
Pacific
Pension
Institute
from
2014
to
2018;
Advisory
Board
Member,
Center
for
Private
Equity
and
Entrepreneurship
at
Tuck
School
of
Business
since
1997;
Senior
Advisor,
Commonfund
Capital,
Inc.
(“CCI”)
(investment
adviser)
in
2015;
Chief
Executive
Officer,
CCI
from
2013
to
2014;
President
&
Chief
Executive
Officer,
CCI
from
1997
to
2013;
Advisory
Board
Member,
Girls
Who
Invest
from
2015
to
2018
and
Board
Member
thereof
since
2018;
Advisory
Board
Member,
Bridges
Fund
Management
since
2016;
Trustee,
Financial
Accounting
Foundation
since
2017;
Practitioner
Advisory
Board
Member,
Private
Capital
Research
Institute
("PCRI")
since
2017;
Lecturer
in
the
Practice
of
Management,
Yale
School
of
Management
since
2019;
Advisor
to
Finance
Committee,
Altman
Foundation
since
2020.
30
RICs
consisting
of
152
Portfolios
None
Collette
Chilton
1958
Trustee
(Since
2015)
Chief
Investment
Officer,
Williams
College
since
2006;
Chief
Investment
Officer,
Lucent
Asset
Management
Corporation
from
1998
to
2006;
Director,
Boys
and
Girls
Club
of
Boston
since
2017;
Director,
B1
Capital
since
2018;
Director,
David
and
Lucile
Packard
Foundation
since
2020.
30
RICs
consisting
of
152
Portfolios
None
Neil
A.
Cotty
1954
Trustee
(Since
2016)
Bank
of
America
Corporation
from
1996
to
2015,
serving
in
various
senior
finance
leadership
roles,
including
Chief
Accounting
Officer
from
2009
to
2015,
Chief
Financial
Officer
of
Global
Banking,
Markets
and
Wealth
Management
from
2008
to
2009,
Chief
Accounting
Officer
from
2004
to
2008,
Chief
Financial
Officer
of
Consumer
Bank
from
2003
to
2004,
Chief
Financial
Officer
of
Global
Corporate
Investment
Bank
from
1999
to
2002.
30
RICs
consisting
of
152
Portfolios
None
Lena
G.
Goldberg
1949
Trustee
(Since
2019)
Director,
Charles
Stark
Draper
Laboratory,
Inc.
since
2013;
Senior
Lecturer,
Harvard
Business
School,
from
2008
to
2021;
FMR
LLC/Fidelity
Investments
(financial
services)
from
1996
to
2008,
serving
in
various
senior
roles
including
Executive
Vice
President
-
Strategic
Corporate
Initiatives
and
Executive
Vice
President
and
General
Counsel;
Partner,
Sullivan
&
Worcester
LLP
from
1985
to
1996
and
Associate
thereof
from
1979
to
1985.
30
RICs
consisting
of
152
Portfolios
None
Henry
R.
Keizer
1956
Trustee
(Since
2019)
Director,
Park
Indemnity
Ltd.
(captive
insurer)
since
2010;
Director,
MUFG
Americas
Holdings
Corporation
and
MUFG
Union
Bank,
N.A.
(financial
and
bank
holding
company)
from
2014
to
2016;
Director,
American
Institute
of
Certified
Public
Accountants
from
2009
to
2011;
Director,
KPMG
LLP
(audit,
tax
and
advisory
services)
from
2004
to
2005
and
2010
to
2012;
Director,
KPMG
International
in
2012,
Deputy
Chairman
and
Chief
Operating
Officer
thereof
from
2010
to
2012
and
U.S.
Vice
Chairman
of
Audit
thereof
from
2005
to
2010;
Global
Head
of
Audit,
KPMGI
(consortium
of
KPMG
firms)
from
2006
to
2010;
Director,
YMCA
of
Greater
New
York
from
2006
to
2010.
30
RICs
consisting
of
152
Portfolios
Hertz
Global
Holdings
(car
rental);
Sealed
Air
Corp.
(packaging);
Montpelier
Re
Holdings,
Ltd.
(publicly
held
property
and
casualty
reinsurance)
from
2013
to
2015;
WABCO
(commercial
vehicle
safety
systems)
from
2015
to
2020
Cynthia
A.
Montgomery
1952
Trustee
(Since
2007)
Professor,
Harvard
Business
School
since
1989.
30
RICs
consisting
of
152
Portfolios
Newell
Rubbermaid,
Inc.
(manufacturing)
from
1995
to
2016
Trustee
and
Officer
Information
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
30
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
Donald
C.
Opatrny
1952
Trustee
(Since
2019)
Trustee,
Vice
Chair,
Member
of
the
Executive
Committee
and
Chair
of
the
Investment
Committee,
Cornell
University
from
2004
to
2019;
President,
Trustee
and
Member
of
the
Investment
Committee,
The
Aldrich
Contemporary
Art
Museum
from
2007
to
2014;
Member
of
the
Board
and
Investment
Committee,
University
School
from
2007
to
2018;
Member
of
the
Investment
Committee,
Mellon
Foundation
from
2009
to
2015;
Trustee,
Artstor
(a
Mellon
Foundation
affiliate)
from
2010
to
2015;
President
and
Trustee,
the
Center
for
the
Arts,
Jackson
Hole
from
2011
to
2018;
Director,
Athena
Capital
Advisors
LLC
(investment
management
firm)
since
2013;
Trustee
and
Chair
of
the
Investment
Committee,
Community
Foundation
of
Jackson
Hole
since
2014;
Member
of
Affordable
Housing
Supply
Board
of
Jackson,
Wyoming
since
2017;
Member,
Investment
Funds
Committee,
State
of
Wyoming
since
2017;
Trustee,
Phoenix
Art
Museum
since
2018;
Trustee,
Arizona
Community
Foundation
and
Member
of
Investment
Committee
since
2020.
30
RICs
consisting
of
152
Portfolios
None
Joseph
P.
Platt
1947
Trustee
(Since
2007)
General
Partner,
Thorn
Partners,
LP
(private
investments)
since
1998;
Director,
WQED
Multi-Media
(public
broadcasting
not-for-
profit)
since
2001;
Chair,
Basic
Health
International
(non-profit)
since
2015.
30
RICs
consisting
of
152
Portfolios
Greenlight
Capital
Re,
Ltd.
(reinsurance
company);
Consol
Energy
Inc.
Kenneth
L.
Urish
1951
Trustee
(Since
2007)
Managing
Partner,
Urish
Popeck
&
Co.,
LLC
(certified
public
accountants
and
consultants)
since
1976;
Past-Chairman
of
the
Professional
Ethics
Committee
of
the
Pennsylvania
Institute
of
Certified
Public
Accountants
and
Committee
Member
thereof
since
2007;
Member
of
External
Advisory
Board,
The
Pennsylvania
State
University
Accounting
Department
since
founding
in
2001;
Principal,
UP
Strategic
Wealth
Investment
Advisors,
LLC
since
2013;
Trustee,
The
Holy
Family
Institute
from
2001
to
2010;
President
and
Trustee,
Pittsburgh
Catholic
Publishing
Associates
from
2003
to
2008;
Director,
Inter-Tel
from
2006
to
2007;
Member,
Advisory
Board,
ESG
Competent
Boards
since
2020.
30
RICs
consisting
of
152
Portfolios
None
Claire
A.
Walton
1957
Trustee
(Since
2016)
Chief
Operating
Officer
and
Chief
Financial
Officer
of
Liberty
Square
Asset
Management,
LP
from
1998
to
2015;
General
Partner
of
Neon
Liberty
Capital
Management,
LLC
since
2003;
Director,
Boston
Hedge
Fund
Group
from
2009
to
2018;
Director,
Woodstock
Ski
Runners
since
2013;
Director,
Massachusetts
Council
on
Economic
Education
from
2013
to
2015.
30
RICs
consisting
of
152
Portfolios
None
Independent
Trustees
(a)
(continued)
Trustee
and
Officer
Information
(continued)
31
Trustee
and
Officer
Information
Interested
Trustees
(a)(d)
(a)
The
address
of
each
Trustee
is
c/o
BlackRock,
Inc.,
55
East
52nd
Street,
New
York,
New
York
10055.
(b)
Independent
Trustees
serve
until
their
resignation,
retirement,
removal
or
death,
or
until
December
31
of
the
year
in
which
they
turn
75.
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.
Furthermore,
effective
January
1,
2019,
three
BlackRock
Fund
Complexes
were
realigned
and
consolidated
into
two
BlackRock
Fund
Complexes.
As
a
result,
although
the
chart
shows
the
year
that
each
Independent
Trustee
joined
the
Board,
certain
Independent
Trustees
first
became
members
of
the
boards
of
other
BlackRock-advised
Funds,
legacy
MLIM
funds
or
legacy
BlackRock
funds
as
follows:
Bruce
R.
Bond,
2005;
Cynthia
A.
Montgomery,
1994;
Joseph
P.
Platt,
1999;
Kenneth
L.
Urish,
1999;
Lena
G.
Goldberg,
2016;
Henry
R.
Keizer,
2016;
Donald
C.
Opatrny,
2015.
(d)
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
Fixed-Income
Complex.
(e)
Mr.
Perlowski
is
also
a
trustee
of
the
BlackRock
Credit
Strategies
Fund
and
BlackRock
Private
Investments
Fund.
Name
Year
of
Birth
(b)
Position(s)
Held
(Length
of
Service)
(c)
Principal
Occupation(s)
During
Past
Five
Years
Number
of
BlackRock-Advised
Registered
Investment
Companies
(“RICs”)
Consisting
of
Investment
Portfolios
(“Portfolios”)
Overseen
Public
Company
and
Other
Investment
Company
Directorships
Held
During
Past
Five
Years
Robert
Fairbairn
1965
Trustee
(Since
2018)
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.
103
RICs
consisting
of
252
Portfolios
None
John
M.
Perlowski
(e)
1964
Trustee
(Since
2015);
President
(Since
2018)
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.
105
RICs
consisting
of
254
Portfolios
None
Trustee
and
Officer
Information
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
32
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
Thomas
Callahan
1968
Vice
President
(Since
2016)
Managing
Director
of
BlackRock,
Inc.
since
2013;
Member
of
the
Board
of
Managers
of
BlackRock
Investments,
LLC
(principal
underwriter)
since
2019
and
Managing
Director
thereof
since
2017;
Head
of
BlackRock’s
Global
Cash
Management
Business
since
2016;
Co-Head
of
the
Global
Cash
Management
Business
from
2014
to
2016;
Deputy
Head
of
the
Global
Cash
Management
Business
from
2013
to
2014;
Member
of
the
Cash
Management
Group
Executive
Committee
since
2013;
Chief
Executive
Officer
of
NYSE
Liffe
U.S.
from
2008
to
2013.
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.
Trent
Walker
1974
Chief
Financial
Officer
(Since
2021)
Managing
Director
of
BlackRock,
Inc.
since
September
2019;
Executive
Vice
President
of
PIMCO
from
2016
to
2019;
Senior
Vice
President
of
PIMCO
from
2008
to
2015;
Treasurer
from
2013
to
2019
and
Assistant
Treasurer
from
2007
to
2017
of
PIMCO
Funds,
PIMCO
Variable
Insurance
Trust,
PIMCO
ETF
Trust,
PIMCO
Equity
Series,
PIMCO
Equity
Series
VIT,
PIMCO
Managed
Accounts
Trust,
2
PIMCO-sponsored
interval
funds
and
21
PIMCO-sponsored
closed-end
funds.
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.
Neal
J.
Andrews
retired
as
the
Chief
Financial
Officer
effective
December
31,
2020,
and
Trent
Walker
was
elected
as
the
Chief
Financial
Officer
effective
January
1,
2021.
Additional
Information
33
Additional
Information
General
Information 
Quarterly
performance,
semi-annual
and
annual
reports,
current
net
asset
value
and
other
information
regarding
the
Fund
may
be
found
on
BlackRock’s
website,
which
can
be
accessed
at
blackrock.com
.
Any
reference
to
BlackRock’s
website
in
this
report
is
intended
to
allow
investors
public
access
to
information
regarding
the
Fund
and
does
not,
and
is
not
intended
to,
incorporate
BlackRock’s
website
in
this
report.
Householding
The
Fund
will
mail
only
one
copy
of
shareholder
documents,
including
prospectuses,
annual
and
semi-annual
reports,
Rule
30e-3
notices
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
Transfer
Agent at
(800)
441-7762.
Availability
of
Quarterly
Schedule
of
Investments 
The
Fund
files
its
complete
schedule
of
portfolio
holdings
with
the
SEC
each
month
on
Form
N-MFP.
The
Fund’s
reports
on
Form
N-MFP
are
available
on
the
SEC’s
website
at
sec.gov
.
The
Fund
makes
portfolio
holdings
available
to
shareholders
on
its
website
at
blackrock.com
.
Availability
of
Proxy
Voting
Policies,
Procedures and
Voting
Records
A
description
of
the
policies
and
procedures
that
the
Fund
uses
to
determine
how
to
vote
proxies
relating
to
portfolio
securities
and
information
about
how
the
Fund
voted
proxies
relating
to
securities
held
in
the
Fund's
portfolio
during
the
most
recent
12-month
period
ended
June
30 is
available
without
charge,
upon
request (1)
by
calling
(800)
441-
7762
;
(2)
on
the
BlackRock
website
at
blackrock.com
;
and
(3)
on
the
SEC’s
website
at
sec.gov
.
BlackRock
Privacy
Principles
BlackRock
is
committed
to
maintaining
the
privacy
of
its
current
and
former
fund
investors
and
individual
clients
(collectively,
“Clients”)
and
to
safeguarding
their
non-public
personal
information.
The
following
information
is
provided
to
help
you
understand
what
personal
information
BlackRock
collects,
how
we
protect
that
information
and
why
in
certain
cases
we
share
such
information
with
select
parties.
If
you
are
located
in
a
jurisdiction
where
specific
laws,
rules
or
regulations
require
BlackRock
to
provide
you
with
additional
or
different
privacy-related
rights
beyond
what
is
set
forth
below,
then
BlackRock
will
comply
with
those
specific
laws,
rules
or
regulations.
BlackRock
obtains
or
verifies
personal
non-public
information
from
and
about
you
from
different
sources,
including
the
following:
(i)
information
we
receive
from
you
or,
if
applicable,
your
financial
intermediary,
on
applications,
forms
or
other
documents;
(ii)
information
about
your
transactions
with
us,
our
affiliates,
or
others;
(iii)
information
we
receive
from
a
consumer
reporting
agency;
and
(iv)
from
visits
to
our
websites.
BlackRock
does
not
sell
or
disclose
to
non-affiliated
third
parties
any
non-public
personal
information
about
its
Clients,
except
as
permitted
by
law
or
as
is
necessary
to
respond
to
regulatory
requests
or
to
service
Client
accounts.
These
non-affiliated
third
parties
are
required
to
protect
the
confidentiality
and
security
of
this
information
and
to
use
it
only
for
its
intended
purpose.
We
may
share
information
with
our
affiliates
to
service
your
account
or
to
provide
you
with
information
about
other
BlackRock
products
or
services
that
may
be
of
interest
to
you.
In
addition,
BlackRock
restricts
access
to
non-public
personal
information
about
its
Clients
to
those
BlackRock
employees
with
a
legitimate
business
need
for
the
information.
BlackRock
maintains
physical,
electronic
and
procedural
safeguards
that
are
designed
to
protect
the
non-public
personal
information
of
its
Clients,
including
procedures
relating
to
the
proper
storage
and
disposal
of
such
information.
Additional
Information
(continued)
2021
BlackRock
Annual
Report
to
Shareholders
34
Fund
and
Service
Providers
Investment
Adviser
and
Administrator
BlackRock
Advisors,
LLC
Wilmington,
DE
19809
Sub-Adviser
BlackRock
International
Limited
Edinburgh,
EH3
8JB
United
Kingdom
Accounting
Agent
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
Transfer
Agent
BNY
Mellon
Investment
Servicing
(US)
Inc.
Wilmington,
DE
19809
Custodians
JPMorgan
Chase
Bank,
N.A.
New
York,
NY
10179
The
Bank
of
New
York
Mellon
New
York,
NY
10286
Independent
Registered
Public
Accounting
Firm
Deloitte
&
Touche
LLP
Boston,
MA
02116
Distributor
BlackRock
Investments,
LLC
New
York,
NY
10022
Legal
Counsel
Sidley
Austin
LLP
New
York,
NY
10019
Address
of
the
Trust
100
Bellevue
Parkway
Wilmington,
DE
19809
Glossary
of
Terms
Used
in
this
Report
35
Glossary
of
Terms
Used
in
this
Report
Currency
Abbreviations
USD
United
States
Dollar
Portfolio
Abbreviations
LIBOR
London
Interbank
Offered
Rate
LIQ
Liquidity
Agreement
LOC
Letter
of
Credit
RB
Revenue
Bonds
SBPA
Stand-by-Bond
Purchase
Agreement
SOFR
Secured
Overnight
Financing
Rate
VRDN
Variable
Rate
Demand
Notes
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
Fund
unless
preceded
or
accompanied
by
the
Fund’s
current
prospectus.
You
could
lose
money
by
investing
in
the
Fund.
Because
the
share
price
of
the
Fund
will
fluctuate,
when
you
sell
your
shares
they
may
be
worth
more
or
less
than
what
you
originally
paid
for
them.
The
Fund
may
impose
a
fee
upon
sale
of
your
shares
or
may
temporarily
suspend
your
ability
to
sell
shares
if
the
Fund's
liquidity
falls
below
required
minimums
because
of
market
conditions
or
other
factors.
An
investment
in
the
Fund
is
not
insured
or
guaranteed
by
the
Federal
Deposit
Insurance
Corporation
or
any
other
government
agency.
The
Fund’s
sponsor
has
no
legal
obligation
to
provide
financial
support
to
the
Fund
at
any
time.
Performance
data
quoted
represents
past
performance
and
does
not
guarantee
future
results.
Total
return
information
assumes
reinvestment
of
all
distributions.
Current
performance
may
be
higher
or
lower
than
the
performance
data
quoted.
For
current
month-end
performance
information,
call
(800)
626-1960.
The
Fund’s
current
7-day
yield
more
closely
reflects
the
current
earnings
of
the
Fund
than
the
total
returns
quoted.
Statements
and
other
information
herein
are
as
dated
and
are
subject
to
change.
LEAF-7/21-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:

Neil A. Cotty
Henry R. Keizer
Kenneth L. Urish
 
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 Liquid Environmentally Aware Fund
$26,967
$26,520
$210
$0
$9,500
$9,500
$0
$0
 
The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):
 
 
Current Fiscal Year End
Previous Fiscal Year End
(b) Audit-Related Fees1
$0
$0
(c) Tax Fees2
$0
$0
(d) All Other Fees3
$2,032,000
$1,984,000
1
The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.
2
The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.
3
Non-audit fees of $2,032,000 and $1,984,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription.  These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
 

(e)(1) Audit Committee Pre-Approval Policies and Procedures:
         
The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.
 
                        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.


(e)(2)  None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g)
The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:
Entity Name
Current Fiscal Year End
Previous Fiscal Year End
BlackRock Liquid Environmentally Aware Fund
$9,710
$9,500
             
              Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:
Current Fiscal Year End
Previous Fiscal Year End
$2,032,000
$1,984,000
 
              These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.
 
              (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and
the Affiliated Service Providers
that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.
Item 5 –  Audit Committee of Listed 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(a) 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
(a)(3) Not Applicable
(a)(4) Not Applicable
(b) Section 906 Certifications are attached
section906
 

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
SM
 
By:     /s/ John M. Perlowski
John M. Perlowski
Chief Executive Officer (principal executive officer) of
          BlackRock Funds
SM
 
Date: October 4, 2021
 
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
SM
 
Date: October 4, 2021
 
By:     /s/ Trent Walker
          Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock Funds
SM
 
Date: October 4, 2021

 
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 FundsSM, certify that:
1.
                  
I have reviewed this report on Form N-CSR of BlackRock FundsSM;
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: October 4, 2021
/s/ John M. Perlowski________
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock FundsSM

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, Trent Walker, Chief Financial Officer (principal financial officer) of BlackRock FundsSM, certify that:
1.
                  
I have reviewed this report on Form N-CSR of BlackRock FundsSM;
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: October 4, 2021
/s/ Trent Walker_________
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock FundsSM

 
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 FundsSM (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant's Report on Form N-CSR for the period ended July 31, 2021 (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: October 4, 2021
/s/ John M. Perlowski_________
John M. Perlowski
Chief Executive Officer (principal executive officer) of
BlackRock FundsSM
 
 
Pursuant to 18 U.S.C. § 1350, the undersigned officer of BlackRock FundsSM (the “registrant”), hereby certifies, to the best of his knowledge, that the registrant's Report on Form N-CSR for the period ended July 31, 2021 (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: October 4, 2021
/s/ Trent Walker___________
Trent Walker
Chief Financial Officer (principal financial officer) of
BlackRock FundsSM
 
 
 
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.