UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-23339

Name of Fund:  BlackRock Funds V

BlackRock Inflation Protected Bond Portfolio

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service:  John M. Perlowski, Chief Executive Officer, BlackRock Funds V, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2020

Date of reporting period: 12/31/2020

Item 1 – Report to Stockholders

(a)

The Report to Shareholders is attached herewith.

(b)

Not Applicable

DECEMBER

31,

2020

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2020

Annual

Report

BlackRock

Funds

V

BlackRock

Inflation

Protected

Bond

Portfolio

Dear

Shareholder,

The

12-month

reporting

period

as

of

December

31,

2020

has

been

a

time

of

sudden

change

in

global

financial

markets,

as

the

emergence

and

spread

of

the

coronavirus

(or

“COVID-19”)

led

to

a

vast

disruption

in

the

global

economy

and

financial

markets.

The

threat

from

the

coronavirus

became

increasingly

apparent

throughout

February

and

March

2020,

and

countries

around

the

world

took

economically

disruptive

countermeasures.

Stay-

at-home

orders

and

closures

of

non-essential

businesses

became

widespread,

many

workers

were

laid

off,

and

unemployment

claims

spiked,

causing

a

global

recession

and

a

sharp

fall

in

equity

prices.

After

markets

hit

their

lowest

point

of

the

reporting

period

in

late

March

2020,

a

steady

recovery

ensued,

as

businesses

began

to

re-open

and

governments

learned

to

adapt

to

life

with

the

virus.

Equity

prices

continued

to

rise

throughout

the

summer,

fed

by

strong

fiscal

and

monetary

support

and

improving

economic

indicators.

Many

equity

indices

neared

or

surpassed

all-time

highs

late

in

the

reporting

period

following

a

series

of

successful

vaccine

trials

and

passage

of

additional

stimulus.

In

the

United

States,

both

large-

and

small-capitalization

stocks

posted

a

significant

advance.

International

equities

from

developed

economies

grew

at

a

more

modest

pace,

lagging

emerging

market

stocks,

which

rebounded

sharply.

During

the

market

downturn,

the

performance

of

different

types

of

fixed-income

securities

initially

diverged

due

to

a

reduced

investor

appetite

for

risk.

U.S.

Treasuries

benefited

from

the

risk-off

environment,

and

posted

solid

returns,

as

the

10-year

U.S.

Treasury

yield

(which

is

inversely

related

to

bond

prices)

touched

an

all-time

low.

In

the

corporate

bond

market,

support

from

the

U.S.

Federal

Reserve

(the

“Fed”)

assuaged

credit

concerns

and

both

investment-grade

and

high-yield

bonds

recovered

to

post

positive

returns.

Following

the

coronavirus

outbreak,

the

Fed

instituted

two

emergency

interest

rate

cuts,

pushing

short-

term

interest

rates,

already

low

as

the

year

began,

close

to

zero.

To

stabilize

credit

markets,

the

Fed

also

implemented

a

new

bond-buying

program,

as

did

several

other

central

banks

around

the

world,

including

the

European

Central

Bank

and

the

Bank

of

Japan.

Looking

ahead,

while

coronavirus-related

disruptions

have

clearly

hindered

worldwide

economic

growth,

we

believe

that

the

global

expansion

is

likely

to

accelerate

as

vaccination

efforts

get

under

way.

The

results

of

the

U.S.

elections

also

cleared

the

way

for

additional

stimulus

spending

in

2021,

which

is

likely

to

be

a

solid

tailwind

for

economic

growth.

Inflation

should

increase

as

the

expansion

continues,

but

a

shift

in

central

bank

policy

means

that

moderate

inflation

is

less

likely

to

be

followed

by

interest

rate

hikes

that

could

threaten

the

equity

expansion.

Overall,

we

favor

a

positive

stance

toward

risk,

with

an

overweight

in

both

equities

and

credit.

We

see

U.S.

and

Asian

equities

benefiting

from

structural

growth

trends

in

tech,

while

emerging

markets

should

be

particularly

helped

by

a

vaccine-led

economic

expansion.

In

credit,

rising

inflation

should

provide

tailwinds

for

inflation-

protected

bonds,

and

Euro

area

peripherals

and

Asian

bonds

also

provide

attractive

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

December

31,

2020

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

22.16%

18.40%

U.S.

small

cap

equities

(Russell

2000

®

Index)

37.85

19.96

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

21.61

7.82

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

31.14

18.31

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

0.07

0.67

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

(1.87)

10.58

U.S.

investment

grade

bonds

(Bloomberg

Barclays

U.S.

Aggregate

Bond

Index)

1.29

7.51

Tax-exempt

municipal

bonds

(S&P

Municipal

Bond

Index)

2.92

4.95

U.S.

high

yield

bonds

(Bloomberg

Barclays

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

11.32

7.05

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

...................................................................................................

2

Annual

Report:

Fund

Summary

........................................................................................................

4

The

Benefits

and

Risks

of

Leveraging

..........................................................................................

7

About

Fund

Performance 

.................................................................................................

7

Disclosure

of

Expenses

...................................................................................................

8

Derivative

Financial

Instruments

.............................................................................................

8

Consolidated

Financial

Statements:

Consolidated

Schedule

of

Investments

........................................................................................

9

Consolidated

Statement

of

Assets

and

Liabilities

..................................................................................

20

Consolidated

Statement

of

Operations

........................................................................................

22

Consolidated

Statements

of

Changes

in

Net

Assets

................................................................................

23

Consolidated

Statement

of

Cash

Flows

.......................................................................................

24

Consolidated

Financial

Highlights

.............................................................................................

26

Notes

to

Consolidated

Financial

Statements

......................................................................................

31

Report

of

Independent

Registered

Public

Accounting

Firm

..............................................................................

43

Important

Tax

Information

(unaudited)

.................................................................................................

43

Statement

Regarding

Liquidity

Risk

Management

Program

.............................................................................

44

Trustee

and

Officer

Information

..............................................................................................

45

Additional

Information

....................................................................................................

48

Glossary

of

Terms

Used

in

this

Report

..........................................................................................

50

Fund

Summary

as

of

December

31,

2020

2020

BlackRock

Annual

Report

to

Shareholders

4

BlackRock

Inflation

Protected

Bond

Portfolio

Investment

Objective

BlackRock

Inflation

Protected

Bond

Portfolio’s

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

real

return,

consistent

with

preservation

of

real

capital

and

prudent

investment

management.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

December

31,

2020,

all

of

the

Fund’s

share

classes

outperformed

the

benchmark,

the

Bloomberg

Barclays

U.S.

Treasury

Inflation

Protected

Securities

Index,

except

for

the

Fund’s

Investor

C

Shares,

which

underperformed

the

benchmark.

What

factors

influenced

performance?

The

Fund's

long

U.S.

inflation

positioning

via

its

core

allocation

to

Treasury

inflation

protected

securities

(“TIPS”)

contributed

to

performance

as

inflation

expectations

moved

meaningfully

higher

after

the

first

quarter

of

2020.

The

Fund

also

benefited

from

small

out-of-benchmark

allocations

to

Italian

inflation,

macro

strategies

and

emerging

market

sovereign

rates.

In

addition,

the

Fund

held

agency

mortgage-backed

securities

and

agency

commercial

mortgage-backed

securities

that

performed

well

after

extreme

underperformance

in

March

as

the

market

was

supported

by

the

Fed.

Finally,

Fund

performance

benefited

from

short

volatility

positions

and

TIPS

relative

value

positions

initiated

in

March.

The

only

notable

detractor

from

Fund

returns

was

the

Fund’s

U.S.

interest

rate

positioning.

Entering

2020,

the

Fund

was

positioned

underweight

to

nominal

U.S.

rates,

detracting

from

performance

as

the

global

spread

of

COVID-19

led

the

Fed

to

cut

short-term

interest

rates

to

zero

in

March

and

Treasury

yields

declined

sharply

in

the

wake

of

a

global

flight

to

safety.

Describe

recent

portfolio

activity.

The

Fund

trimmed

TIPS

exposure

as

valuations

approached

fair

levels

on

the

front

end

of

the

TIPS

curve

over

the

second

half

of

the

year.

The

Fund

also

moved

to

a

below

benchmark

stance

with

respect

to

duration

(and

corresponding

sensitivity

to

changes

in

interest

rates)

as

Treasury

yields

reached

historically

low

levels.

Describe

portfolio

positioning

at

period

end.

At

period

end,

the

Fund

remained

positioned

to

benefit

from

inflation

exceeding

expectations

as

reflected

in

valuations

for

shorter

maturity

TIPS,

on

the

view

that

monetary

and

fiscal

policy

will

remain

extremely

supportive.

However,

the

investment

adviser’s

positive

stance

on

inflation

was

more

muted

than

that

assumed

during

much

of

2020

given

the

recovery

in

expectations

seen

in

recent

quarters.

The

Fund

was

underweight

in

duration

in

the

United

States

and

Europe,

and

maintained

modest

exposure

to

emerging

market

debt.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

December

31,

2020

(continued)

5

Fund

Summary

BlackRock

Inflation

Protected

Bond

Portfolio

TOTAL

RETURN

BASED

ON

A

$10,000

INVESTMENT

Performance

Summary

for

the

Period

Ended

December

31,

2020

(a)

Assuming

maximum

sales

charges,

if

any,

transaction

costs

and

other

operating

expenses,

including

investment

advisory

fees

and

administration

fees,

if

any.

Institutional

Shares

do

not

have

a

sales

charge.

(b)

Under

normal

circumstances,

the

Fund

invests

at

least

80%

of

its

assets

in

inflation-indexed

bonds

of

varying

maturities

issued

by

the

U.S.

and

non-U.S.

governments,

their

agencies

or

instrumentalities

and

U.S.

and

non-U.S.

corporations.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

Inflation

Protected

Bond

Portfolio

(the

“Predecessor

Fund”),

a

series

of

BlackRock

Funds

II,

through

a

tax-free

reorganization

(the

“Reorganization”).

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

An

unmanaged

index

that

measures

the

performance

of

the

inflation-protected

public

obligations

of

the

U.S.

Treasury.

Average

Annual

Total

Returns

(a)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

6-Month

Total

Returns

w/o

sales

charge

w/sales

charge

w/o

sales

charge

w/sales

charge

w/o

sales

charge

w/sales

charge

Institutional

......................

(0.85‌)%

(1.04‌)%

5.34‌%

11.75‌%

N/A‌

4.97‌%

N/A‌

3.48‌%

N/A‌

Service

........................

(1.10‌)

(1.24‌)

5.24‌

11.51‌

N/A‌

4.71‌

N/A‌

3.20‌

N/A‌

Investor

A

.......................

(1.06‌)

(1.23‌)

5.20‌

11.53‌

7.07‌%

4.70‌

3.85‌%

3.18‌

2.76‌%

Investor

C

.......................

(1.83‌)

(1.93‌)

4.81‌

10.64‌

9.64‌

3.94‌

3.94‌

2.59‌

2.59‌

Class

K

........................

(0.81‌)

(0.87‌)

5.33‌

11.85‌

N/A‌

5.05‌

N/A‌

3.57‌

N/A‌

Bloomberg

Barclays

U.S.

Treasury

Inflation

Protected

Securities

Index.

.

—‌

—‌

4.70‌

10.99‌

N/A‌

5.08‌

N/A‌

3.81‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

the

Predeces

sor

Fund,

a

series

of

BlackRock

Funds

II,

through

the

Reorganization.

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

N/A

–

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Fund

Summary

as

of

December

31,

2020

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

6

BlackRock

Inflation

Protected

Bond

Portfolio

Portfolio

Information

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Treasury

Obligations

.............................

92‌

%

Foreign

Government

Obligations

........................

5‌

U.S.

Government

Sponsored

Agency

Securities

..............

1‌

Asset-Backed

Securities

..............................

1‌

Investment

Companies

...............................

1‌

Non-Agency

Mortgage-Backed

Securities

..................

—‌

(b)

Corporate

Bonds

...................................

—‌

(b)

(a)

Excludes

short-term

securities,

options

purchased

and

options

written.

(b)

Represents

less

than

1%

of

the

Fund's

total

investments.

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(a)

Percent

of

Total

Investments

(b)

AAA/

Aaa

(c)

......................................

92‌

%

AA/Aa

.........................................

3‌

A

............................................

—‌

(d)

BBB/Baa

.......................................

2‌

BB/Ba

.........................................

1‌

NR

...........................................

2‌

(a)

For

financial

reporting

purposes,

credit

quality

ratings

shown

above

reflect

the

highest

rating

assigned

by

either

S&P

Global

Ratings

or

Moody’s

Investors

Service

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/

Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

(b)

Excludes

short-term

securities,

options

purchased

and

options

written.

(c)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

(d)

Represents

less

than

1%

of

the

Fund's

total

investments.

The

Benefits

and

Risks

of

Leveraging

7

The

Benefits

and

Risks

of

Leveraging

/

About

Fund

Performance

The

Fund

may

utilize

leverage

to

seek

to

enhance

returns

and

net

asset

value

(“NAV”).

However,

there

is

no

guarantee

that

these

objectives

can

be

achieved

in

all

interest

rate

environments.  

The

Fund

may

utilize

leverage

by

entering

into

reverse

repurchase

agreements.

In

general,

the

concept

of

leveraging

is

based

on

the

premise

that

the

financing

cost

of

leverage,

which

is

based

on

short-term

interest

rates,

is

normally

lower

than

the

income

earned

by

the

Fund

on

its

longer-term

portfolio

investments

purchased

with

the

proceeds

from

leverage.

To

the

extent

that

the

total

assets

of

the

Fund

(including

the

assets

obtained

from

leverage)

are

invested

in

higher-yielding

portfolio

investments,

the

Fund’s

shareholders

benefit

from

the

incremental

net

income.

The

interest

earned

on

securities

purchased

with

the

proceeds

from

leverage

is

distributed

to

the

Fund’s

shareholders,

and

the

value

of

these

portfolio

holdings

is

reflected

in

the

Fund’s

per

share

NAV.

However,

in

order

to

benefit

shareholders,

the

return

on

assets

purchased

with

leverage

proceeds

must

exceed

the

ongoing

costs

associated

with

the

leverage.

If

interest

and

other

ongoing

costs

of

leverage

exceed

the

Fund’s

return

on

assets

purchased

with

leverage

proceeds,

income

to

shareholders

is

lower

than

if

the

Fund

had

not

used

leverage.

Furthermore,

the

value

of

the

Fund’s

portfolio

investments

generally

varies

inversely

with

the

direction

of

long-term

interest

rates,

although

other

factors

can

also

influence

the

value

of

portfolio

investments.

As

a

result,

changes

in

interest

rates

can

influence

the

Fund’s

NAV

positively

or

negatively

in

addition

to

the

impact

on

the

Fund’s

performance

from

leverage.

Changes

in

the

direction

of

interest

rates

are

difficult

to

predict

accurately,

and

there

is

no

assurance

that

the

Fund’s

leveraging

strategy

will

be

successful.

The

use

of

leverage

also

generally

causes

greater

changes

in

the

Fund’s

NAV

and

dividend

rates

than

comparable

portfolios

without

leverage.

In

a

declining

market,

leverage

is

likely

to

cause

a

greater

decline

in

the

NAV

of the

Fund’s

shares

than

if

the

Fund

were

not

leveraged.

In

addition,

the

Fund

may

be

required

to

sell

portfolio

securities

at

inopportune

times

or

at

distressed

values

in

order

to

comply

with

regulatory

requirements

applicable

to

the

use

of

leverage

or

as

required

by

the

terms

of

the

leverage

instruments,

which

may

cause

the

Fund

to

incur

losses.

The

use

of

leverage

may

limit the

Fund’s

ability

to

invest

in

certain

types

of

securities

or

use

certain

types

of

hedging

strategies.

The

Fund

incurs

expenses

in

connection

with

the

use

of

leverage,

all

of

which

are

borne

by

the

Fund’s

shareholders

and

may

reduce

income.

About

Fund

Performance 

Institutional

Shares

and

Class

K

Shares

are

not

subject

to

any

sales

charge.

These

shares

bear

no

ongoing

distribution

or

service

fees

and

are

available

only

to

certain

eligible

investors.

Service

Shares

are

not

subject

to

any

sales

charge.

These

shares

are

subject

to

a

service

fee

of 

0.25%

per

year

(but

no

distribution

fee)

and

are

only

available

to

certain

eligible

investors. 

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of 

4.00%

and

a

service

fee

of 

0.25%

per

year

(but

no

distribution

fee).

Certain

redemptions

of

these

shares

may

be

subject

to

a

contingent

deferred

sales

charge

("CDSC")

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

These

shares

are

generally

available

through

financial

intermediaries.

Investor

C

Shares

 are

subject

to

a 1.00%

CDSC

if

redeemed

within

one

year

of

purchase.

In

addition,

these

shares

are

subject

to

a

distribution

fee

of

0.75

%

per

year

and

a

service

fee

of 

0.25%

per

year.

These

shares

are

generally

available

through

financial

intermediaries.

These

shares

automatically

convert

to

Investor

A

Shares

after

approximately

eight

years.

Past

performance

is

not

an

indication

of

future

results.

Financial

markets

have

experienced

extreme

volatility

and

trading

in

many

instruments

has

been

disrupted.

These

circumstances

may

continue

for

an

extended

period

of

time,

and

may

continue

to

affect

adversely

the

value

and

liquidity

of

the

fund's

investments.

As

a

result,

current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Refer

to

blackrock.com

to

obtain

performance

data

current

to

the

most

recent

month-end.

Performance

results

do

not

reflect

the

deduction

of

taxes

that

a

shareholder

would

pay

on

Fund

distributions

or

the

redemption

of

Fund

shares.

Figures

shown

in

the

performance

tables

on the

previous

page(s)

assume

reinvestment

of

all

distributions,

if

any,

at

NAV

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

"Manager”),

the

Fund's

investment

adviser,

has

contractually

and/or

voluntarily

agreed

to

waive

and/or

reimburse

a

portion

of

the

Fund’s

expenses.

Without

such

waiver(s)

and/or

reimbursement(s),

the

Fund's

performance

would

have

been

lower.

With

respect

to

the

Fund's

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time.

With

respect

to

the

Fund's

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such

agreement.

See

the

Notes

to

Consolidated

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

2020

BlackRock

Annual

Report

to

Shareholders

8

Shareholders

of

the

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees, service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

example

shown below

(which

is

based

on

a

hypothetical

investment

of

$1,000

invested

on July

1,

2020 and

held

through

December

31,

2020)

is

intended

to

assist

shareholders

both

in

calculating

expenses

based

on

an

investment

in

the

Fund

and

in

comparing

these

expenses

with

similar

costs

of

investing

in

other

mutual

funds.

The

expense

example

provides

information

about

actual

account

values

and

actual

expenses.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their share

class

under

the

heading

entitled

“Expenses

Paid

During

the

Period.” 

The

expense

example

also

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses.

In

order

to

assist

shareholders

in

comparing

the

ongoing

expenses

of

investing

in

the

Fund

and

other

funds,

compare

the

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

shareholder

reports

of

other

funds. 

The

expenses

shown

in

the

expense

example

are

intended

to

highlight

shareholders’

ongoing

costs

only

and

do

not

reflect

transactional

expenses,

such

as

sales

charges,

if

any.

Therefore,

the

hypothetical

example is

useful

in

comparing

ongoing

expenses

only,

and

will

not

help

shareholders

determine

the

relative

total

expenses

of

owning

different

funds.

If

these

transactional

expenses

were

included,

shareholder

expenses

would

have

been

higher.

Derivative

Financial

Instruments

The

Fund

may

invest

in

various

derivative

financial

instruments.

These

instruments

are

used

to

obtain

exposure

to

a

security,

commodity,

index,

market,

and/or

other

assets

without

owning

or

taking

physical

custody

of

securities,

commodities

and/or

other

referenced

assets

or

to

manage

market,

equity,

credit,

interest

rate,

foreign

currency

exchange

rate,

commodity

and/or

other

risks.

Derivative

financial

instruments

may

give

rise

to

a

form

of

economic

leverage

and

involve

risks,

including

the

imperfect

correlation

between

the

value

of

a

derivative

financial

instrument

and

the

underlying

asset,

possible

default

of

the

counterparty

to

the

transaction

or

illiquidity

of

the

instrument.

The

Fund’s

successful

use

of

a

derivative

financial

instrument

depends

on

the

investment

adviser’s

ability

to

predict

pertinent

market

movements

accurately,

which

cannot

be

assured.

The

use

of

these

instruments

may

result

in

losses

greater

than

if

they

had

not

been

used,

may

limit

the

amount

of

appreciation the

Fund

can

realize

on

an

investment

and/or

may

result

in

lower

distributions

paid

to

shareholders.

The

Fund’s

investments

in

these

instruments,

if

any,

are

discussed

in

detail

in

the

Notes

to

Consolidated

Financial

Statements.

Actual

Hypothetical

(a)

Including

Interest

Expense

Excluding

Interest

Expense

Including

Interest

Expense

Excluding

Interest

Expense

Beginning

Account

Value

(07/01/20)

Ending

Account

Value

(12/31/20)

Expenses

Paid

During

the

Period

(b)

Expenses

Paid

During

the

Period

(c)

Beginning

Account

Value

(07/01/20)

Ending

Account

Value

(12/31/20)

Expenses

Paid

During

the

Period

(b)

Ending

Account

Value

(12/31/20)

Expenses

Paid

During

the

Period

(c)

Institutional

...............

$

1,000.00

$

1,053.40

$

1.86

$

1.70

$

1,000.00

$

1,023.33

$

1.83

$

1,023.48

$

1.68

Service

.................

1,000.00

1,052.40

3.20

3.04

1,000.00

1,022.02

3.15

1,022.17

3.00

Investor

A

................

1,000.00

1,052.00

3.20

3.0

4

1,000.00

1,022.02

3.15

1,022.1

7

3.0

0

Investor

C

................

1,000.00

1,048.10

6.90

6.74

1,000.00

1,018.40

6.80

1,018.55

6.65

Class

K

.................

1,000.00

1,053.30

1.65

1.5

0

1,000.00

1,023.53

1.63

1,023.6

8

1.

48

(a)

Hypothetical

5%

annual

return

before

expenses

is

calculated

by

prorating

the

number

of

days

in

the

most

recent

fiscal

half

year

divided

by

366.

(b)

For

each

class

of

the

Fund,

expenses

are

equal

to

the

annualized

expense

ratio

for

the

class

(0.36%

for

Institutional,

0.62%

for

Service,

0.62%

for

Investor

A,

1.34%

for

Investor

C

and

0.32%

for

Class

K),

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/366

(to

reflect

the

one-half

year

period

shown).

(c)

For

each

class

of

the

Fund,

expenses

are

equal

to

the

annualized

expense

ratio

for

the

class

(0.33%

for

Institutional,

0.59%

for

Service,

0.59%

for

Investor

A,

1.31%

for

Investor

C

and

0.29%

for

Class

K),

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/366

(to

reflect

the

one-half

year

period

shown).

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

9

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

December

31,

2020

Security

Par

(000)

Pa

r

(

000)

Value

Asset-Backed

Securities

—

1.2%

United

States

—

1.2%

(a)

AMSR

Trust:

Series

2020-SFR1,

Class

E,

3.22%,

04/17/37

...............

USD

3,000

$

3,062,153

Series

2020-SFR4,

Class

E2,

2.46%,

11/17/37

..........

3,000

3,007,823

Series

2020-SFR5,

Class

E2,

2.93%,

11/17/37

..........

3,000

3,054,527

FirstKey

Homes

Trust:

Series

2020-SFR1,

Class

E,

2.79%,

08/17/37

...............

3,000

3,059,462

Series

2020-SFR2,

Class

E,

2.67%,

10/19/37

...............

3,000

2,991,738

Progress

Residential

Trust:

Series

2020-SFR1,

Class

E,

3.03%,

04/17/37

...............

3,000

3,055,598

Series

2020-SFR3,

Class

E,

2.30%,

10/17/27

...............

3,000

3,003,476

Tricon

American

Homes,

Series

2020-

SFR1,

Class

E,

3.54%,

07/17/38

.

2,000

2,088,227

Tricon

American

Homes

Trust,

Series

2020-SFR2,

Class

E2,

3.08%,

11/17/39

..................

3,000

3,006,880

26,329,884

Total

Asset-Backed

Securities

—

1.2%

(Cost:

$26,187,323)

..............................

26,329,884

Corporate

Bonds

—

0.0%

United

States

—

0.0%

Jagged

Peak

Energy

LLC,

5.88%

,

05/01/26

.................

1,000

1,035,000

Total

Corporate

Bonds

—

0.0%

(Cost:

$1,014,407)

..............................

1,035,000

Foreign

Government

Obligations

—

5.8%

Brazil

—

0.1%

Federative

Republic

of

Brazil,

4.50%

,

05/30/29

.................

1,674

1,860,233

China

—

4.9%

People's

Republic

of

China:

1.99%,

04/09/25

............

CNY

490,100

72,390,095

2.68%,

05/21/30

............

247,000

36,396,873

108,786,968

Colombia

—

0.0%

Republic

of

Colombia,

4.50%

,

03/15/29

USD

750

866,250

Indonesia

—

0.2%

Republic

of

Indonesia:

4.13%,

01/15/25

............

2,000

2,238,125

4.75%,

01/08/26

............

1,750

2,043,672

4,281,797

Israel

—

0.3%

State

of

Israel

Government

Bond,

3.88%

,

07/03/50

............

4,968

5,970,915

Mexico

—

0.2%

United

Mexican

States:

2.66%,

05/24/31

............

3,951

4,063,603

Security

Par

(000)

Par

(000)

Value

Mexico

(continued)

4.75%,

04/27/32

............

USD

945

$

1,135,772

5,199,375

Saudi

Arabia

—

0.1%

Kingdom

of

Saudi

Arabia,

4.38%

,

04/16/29

.................

1,828

2,166,180

Total

Foreign

Government

Obligations

—

5.8%

(Cost:

$124,855,672)

.............................

129,131,718

Shares

Shares

Investment

Companies

—

0.7%*

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

...........

92,000

10,663,720

iShares

U.S.

Real

Estate

ETF

.....

50,000

4,282,500

Total

Investment

Companies

—

0.7%

(Cost:

$14,790,162)

..............................

14,946,220

Par

(000)

Pa

r

(

000)

Non-Agency

Mortgage-Backed

Securities

—

0.1%

Commercial

Mortgage-Backed

Securities

—

0.1%

United

States

—

0.1%

BX

Commercial

Mortgage

Trust,

Series

2020-VIV3,

Class

B,

3.54%,

03/09/44

(a)(b)

...............

1,600

1,697,313

Total

Non-Agency

Mortgage-Backed

Securities

—

0.1%

(Cost:

$1,700,335)

..............................

1,697,313

U.S.

Government

Sponsored

Agency

Securities

—

1.4%

Commercial

Mortgage-Backed

Securities

—

1.4%

(b)

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates

Variable

Rate

Notes:

Series

KL4F,

Class

A2AS,

3.68%

,

 10/25/25

........

2,982

3,253,058

Series

W5FX,

Class

AFX,

3.21%

,

 04/25/28

........

2,500

2,801,347

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes

(a)

:

Series

2016-K60,

Class

B,

3.54%

,

 12/25/49

........

2,000

2,179,199

Series

2017-K61,

Class

B,

3.68%

,

 12/25/49

........

3,000

3,298,677

Series

2017-K62,

Class

B,

3.87%

,

 01/25/50

(c)

.......

2,500

2,691,972

Series

2017-K65,

Class

B,

4.07%

,

 07/25/50

........

2,000

2,240,870

Series

2018-K73,

Class

B,

3.85%

,

 02/25/51

........

1,350

1,506,700

Series

2018-K82,

Class

B,

4.13%

,

 09/25/28

........

2,043

2,323,440

Series

2018-K83,

Class

B,

4.28%

,

 11/25/51

........

2,000

2,296,970

Series

2019-K91,

Class

B,

4.25%

,

 04/25/51

........

2,000

2,303,194

Series

2019-K94,

Class

B,

3.97%

,

 07/25/52

........

2,000

2,270,637

Series

2020-K737,

Class

B,

3.30%

,

 01/25/53

........

932

1,012,280

2020

BlackRock

Annual

Report

to

Shareholders

BlackRock

Inflation

Protected

Bond

Portfolio

10

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Federal

National

Mortgage

Association

ACES

Variable

Rate

Notes,

Series

2017-M14,

Class

A2,

2.88%, 11/25/27

............

USD

2,500

$

2,801,215

30,979,559

Total

U.S.

Government

Sponsored

Agency

Securities

—

1.4%  

(Cost:

$28,549,379)

..............................

30,979,559

U.S.

Treasury

Obligations

—

100.5%

U.S.

Treasury

Inflation

Linked

Bonds:

2.38%, 01/15/25

-

01/15/27

.....

66,527

79,569,438

2.00%, 01/15/26

............

29,942

35,599,223

1.75%, 01/15/28

............

24,753

30,359,508

3.63%, 04/15/28

............

23,518

32,331,341

2.50%, 01/15/29

............

22,288

29,274,854

3.88%, 04/15/29

............

28,633

41,252,343

3.38%, 04/15/32

............

9,845

14,995,556

2.13%, 02/15/40

-

02/15/41

.....

31,440

49,038,724

0.75%, 02/15/42

-

02/15/45

.....

67,247

86,162,549

0.63%, 02/15/43

............

23,413

29,175,003

1.38%, 02/15/44

............

32,664

47,019,880

1.00%, 02/15/46

-

02/15/49

.....

55,617

77,126,454

0.88%, 02/15/47

............

22,678

30,477,024

0.25%, 02/15/50

(d)

...........

19,307

22,999,950

U.S.

Treasury

Inflation

Linked

Notes:

0.13%, 01/15/22

-

01/15/30

.....

491,707

519,880,055

0.13%, 04/15/22

-

07/15/30

(d)

....

306,051

324,213,542

0.63%, 04/15/23

-

01/15/26

.....

191,863

207,026,745

0.38%, 07/15/23

-

07/15/27

.....

248,183

272,058,553

0.50%, 04/15/24

-

01/15/28

.....

102,603

113,516,475

0.25%, 01/15/25

-

07/15/29

.....

75,374

83,963,300

0.75%, 07/15/28

............

50,850

59,134,878

0.88%, 01/15/29

............

41,680

48,978,640

Total

U.S.

Treasury

Obligations

—

100.5%

(Cost:

$2,019,196,885)

...........................

2,234,154,035

Total

Long-Term

Investments

—

109.7%

(Cost:

$2,216,294,163)

...........................

2,438,273,729

Security

Par

(000)

Pa

r

(

000)

Value

Short-Term

Securities

—

3.5%

Foreign

Government

Obligations

—

2.9%

(e)

Japan

—

2.9%

Japan

Treasury

Bill,

(0.09)%

,

03/29/21

JPY

6,700,000

$

64,902,985

Total

Foreign

Government

Obligations

—

2.9%

(Cost:

$64,858,575)

..............................

64,902,985

Shares

Shares

Money

Market

Funds

—

0.6%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

0.00%

(f)*

.....

12,923,082

12,923,082

Total

Money

Market

Funds

—

0.6%

(Cost:

$12,923,082)

..............................

12,923,082

Total

Short-Term

Securities

—

3.5%

(Cost:

$77,781,657)

..............................

77,826,067

Total

Options

Purchased

—

0.2%

(Cost:

$3,154,539)

..............................

3,566,703

Total

Investments

Before

Options

Written

—

113.4%

(Cost:

$2,297,230,359)

...........................

2,519,666,499

Total

Options

Written

—

(0.0)%

(Premiums

Received

—

$1,855,806)

..................

(698,522)

Total

Investments

Net

of

Options

Written

—

113.4%

(Cost:

$2,295,374,553)

...........................

2,518,967,977

Liabilities

in

Excess

of

Other

Assets

—

(13.4)%

...........

(297,465,908)

Net

Assets

—

100.0%

..............................

$

2,221,502,069

(a)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(b)

Variable

rate

security.

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.

(c)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(d)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

reverse

repurchase

agreements.

(e)

Rates

are

discount

rates

or

a

range

of

discount

rates

as

of

period

end.

(f)

Annualized

7-day

yield

as

of

period

end.

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

11

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

*

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

December

31,

2020

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

12/31/19

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

12/31/20

Shares

Held

at

12/31/20

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

(a)

..

$

3,223,483

$

9,699,599

$

—

$

—

$

—

$

12,923,082

12,923,082

$

26,478

$

—

iShares

iBoxx

$

Investment

Grade

Corporate

Bond

ETF

(b)

.....

—

295,744,355

(300,818,670)

5,074,315

—

—

—

292,147

—

iShares

J.P.

Morgan

USD

Emerging

Markets

Bond

ETF

.

—

219,218,144

(209,554,281)

897,737

102,120

10,663,720

92,000

265,240

—

iShares

Trust

1-5

Year

Investment

Grade

Corporate

Bond

ETF

(b)

—

2,750,951

(2,755,104)

4,153

—

—

—

—

—

iShares

U.S.

Real

Estate

ETF

..

—

4,228,562

—

—

53,938

4,282,500

50,000

41,576

—

$

5,976,205

$

156,058

$

27,869,302

$

625,441

$

—

(a)

Represents

net

amount

purchased

(sold).

(b)

As

of

period

end,

the

entity

is

no

longer

held.

Reverse

Repurchase

Agreements

Counterparty

Interest

Rate

Trade

Date

Maturity

Date

Face

Value

Face

Value

Including

Accrued

Interest

Type

of

Non-Cash

Underlying

Collateral

Remaining

Contractual

Maturity

of

the

Agreements

Bank

of

America

Securities,

Inc.

..............

0.16

%

12/31/20

01/04/21  

$

169,337,500

$

169,338,253

U.S.

Treasury

Obligations

Overnight

Deutsche

Bank

Securities,

Inc.

..............

0.13

12/31/20

01/04/21  

22,827,942

22,828,02

5

U.S.

Treasury

Obligations

Overnight

Deutsche

Bank

Securities,

Inc.

..............

0.14

12/31/20

01/04/21  

31,491,005

31,491,12

7

U.S.

Treasury

Obligations

Overnight

Deutsche

Bank

Securities,

Inc.

..............

0.14

12/31/20

01/04/21  

114,214,714

114,215,158

U.S.

Treasury

Obligations

Overnight

$

337,871,161

$

337,872,563

2020

BlackRock

Annual

Report

to

Shareholders

BlackRock

Inflation

Protected

Bond

Portfolio

12

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Long

Contracts

Euro-

Bobl

...............................................................

41

03/08/21

$

6,771

$

(1,996)

Euro-Schatz

.............................................................

687

03/08/21

94,229

(30,197)

S&P

500

E-Mini

Index

......................................................

114

03/19/21

21,368

126,040

Canada

5

Year

Bond

.......................................................

15

03/22/21

1,505

4,117

U.S.

Treasury

Ultra

Bond

....................................................

14

03/22/21

2,990

32,284

U.S.

Treasury

2

Year

Note

....................................................

1

03/31/21

221

210

3

Month

Canadian

Bankers

Acceptance

..........................................

555

06/13/22

108,404

45,653

3

Month

Canadian

Bankers

Acceptance

..........................................

103

09/19/22

20,109

16,717

192,828

Short

Contracts

WTI

Crude

Oil

(a)

...........................................................

45

02/19/21

2,188

(176,516)

Euro-Bund

..............................................................

305

03/08/21

66,189

(203,487)

Euro-

Buxl

...............................................................

12

03/08/21

3,302

3,164

Canada

10

Year

Bond

......................................................

13

03/22/21

1,523

(6,032)

U.S.

Treasury

10

Year

Note

...................................................

60

03/22/21

8,285

(39,479)

U.S.

Treasury

10

Year

Ultra

Note

...............................................

503

03/22/21

78,649

(281,699)

U.S.

Treasury

Long

Bond

....................................................

4

03/22/21

693

(3,256)

U.S.

Treasury

5

Year

Note

....................................................

521

03/31/21

65,731

(57,898)

3

Month

Canadian

Bankers

Acceptance

..........................................

555

06/14/21

108,518

(49,078)

3

Month

Canadian

Bankers

Acceptance

..........................................

103

09/13/21

20,138

(12,555)

(826,836)

$

(634,008)

(a)

All

or

a

portion

of

the

security

is

held

by

a

wholly-owned

subsidiary.

See

Note

1

of

the

Notes

to

Consolidated

Financial

Statements

for

details

on

the

wholly-owned

subsidiary.

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

GBP

1,580,160

USD

2,160,000

Bank

of

America

NA

01/05/21

$

869

MXN

43,653,600

USD

2,160,000

Citibank

NA

01/05/21

33,703

USD

2,160,000

ZAR

31,727,700

BNP

Paribas

SA

01/05/21

919

ZAR

32,352,480

USD

2,160,000

BNP

Paribas

SA

01/05/21

41,598

IDR

30,646,080,000

USD

2,160,000

JPMorgan

Chase

Bank

NA

01/06/21

24,115

INR

159,202,800

USD

2,160,000

JPMorgan

Chase

Bank

NA

01/06/21

18,760

AUD

13,141,919

USD

10,000,000

Barclays

Bank

plc

01/11/21

132,663

AUD

17,723,490

USD

13,500,000

JPMorgan

Chase

Bank

NA

01/11/21

165,140

AUD

1,641,939

USD

1,250,000

State

Street

Bank

and

Trust

Co.

01/11/21

15,965

CAD

17,275,572

USD

13,500,000

JPMorgan

Chase

Bank

NA

01/11/21

72,370

CAD

12,804,508

USD

10,000,000

Morgan

Stanley

&

Co.

International

plc

01/11/21

59,726

CAD

1,599,715

USD

1,250,000

State

Street

Bank

and

Trust

Co.

01/11/21

6,799

GBP

7,406,115

USD

10,000,000

Citibank

NA

01/11/21

128,561

GBP

10,002,482

USD

13,500,000

JPMorgan

Chase

Bank

NA

01/11/21

179,338

GBP

925,837

USD

1,250,000

Royal

Bank

of

Canada

01/11/21

16,170

USD

24,750,000

AUD

32,020,472

Bank

of

America

NA

01/11/21

61,621

USD

19,200,000

AUD

24,880,489

Deutsche

Bank

AG

01/11/21

16,680

USD

43,950,000

EUR

35,851,690

State

Street

Bank

and

Trust

Co.

01/11/21

144,099

MXN

43,177,320

USD

2,160,000

Citibank

NA

02/02/21

2,701

USD

2,160,000

EUR

1,764,165

Bank

of

America

NA

02/02/21

3,303

USD

2,160,000

JPY

222,934,032

Bank

of

America

NA

02/02/21

172

USD

2,160,000

SEK

17,733,343

Bank

of

America

NA

02/02/21

3,885

1,129,157

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

13

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

Forward

Foreign

Currency

Exchange

Contracts

(continued)

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

EUR

1,765,355

USD

2,160,000

Bank

of

America

NA

01/05/21

$

(3,354)

JPY

223,009,200

USD

2,160,000

Bank

of

America

NA

01/05/21

(209)

SEK

17,739,108

USD

2,160,000

Bank

of

America

NA

01/05/21

(3,951)

USD

2,160,000

EUR

1,779,045

JPMorgan

Chase

Bank

NA

01/05/21

(13,370)

USD

2,160,000

GBP

1,614,969

Deutsche

Bank

AG

01/05/21

(48,470)

USD

2,160,000

JPY

224,371,728

Bank

of

America

NA

01/05/21

(12,987)

USD

2,160,000

MXN

43,039,080

Citibank

NA

01/05/21

(2,822)

USD

2,160,000

SEK

18,144,644

Bank

of

America

NA

01/05/21

(45,339)

USD

2,160,000

CLP

1,584,144,000

Citibank

NA

01/06/21

(69,575)

EUR

8,157,177

USD

10,000,000

Barclays

Bank

plc

01/11/21

(33,037)

EUR

11,021,119

USD

13,500,000

JPMorgan

Chase

Bank

NA

01/11/21

(33,688)

EUR

1,019,685

USD

1,250,000

State

Street

Bank

and

Trust

Co.

01/11/21

(4,083)

USD

24,750,000

CAD

31,537,440

Morgan

Stanley

&

Co.

International

plc

01/11/21

(27,056)

USD

19,200,000

CAD

24,460,128

State

Street

Bank

and

Trust

Co.

01/11/21

(16,841)

USD

24,750,000

GBP

18,117,467

Bank

of

America

NA

01/11/21

(27,345)

USD

19,200,000

GBP

14,045,202

Citibank

NA

01/11/21

(8,138)

RUB

159,602,400

USD

2,160,000

Bank

of

America

NA

01/12/21

(3,466)

USD

64,919,309

JPY

6,702,000,000

Morgan

Stanley

&

Co.

International

plc

01/22/21

(2,201)

RUB

160,315,200

USD

2,160,000

JPMorgan

Chase

Bank

NA

02/02/21

(659)

USD

2,160,000

GBP

1,579,808

Bank

of

America

NA

02/02/21

(878)

ZAR

31,851,900

USD

2,160,000

BNP

Paribas

SA

02/02/21

(1,212)

INR

158,191,920

USD

2,160,000

Citibank

NA

02/03/21

(401)

USD

2,393,930

AUD

3,175,189

Bank

of

America

NA

03/17/21

(55,438)

USD

13,473,064

CNY

88,340,000

HSBC

Bank

plc

03/17/21

(47,627)

USD

57,679,481

CNY

379,069,550

Standard

Chartered

Bank

03/17/21

(338,201)

(800,348)

$

328,809

Inflation

Rate

Caps

Refere

n

ce

Entity

Fund

Pays

Fund

Receives

Counterparty

Expiration

Date

Notional

Amount

(000)

Value

Premiums

Paid

(Received)

Unrealized

Appreciation/

(Depreciation)

Eurostat

Eurozone

HICP

Ex

Tobacco

Unrevised

Series

NSA

(

HICPx

)

Maximum

of

HICPx

for

January

2022

divided

by

HICPx

for

January

2012

minus

2.50%

or

$0

Upfront

premium

and

payment

at

expiration

Deutsche

Bank

AG

04/26/22

EUR

14,495

$

–

$

(1,014,650)

$

1,014,650

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

iShares

MSCI

Emerging

Markets

ETF

..............

2,000

02/19/21

USD

52.00

USD

10,334

$

271,000

OTC

Interest

Rate

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Put

10-Year

Interest

Rate

Swap

(a)

1.03%

Semi-Annual

3

month

LIBOR

Quarterly

Bank

of

America

NA

02/19/21

1.03

%

USD

350,000

$

1,886,247

(a)

Forward

settling

swaption.

2020

BlackRock

Annual

Report

to

Shareholders

BlackRock

Inflation

Protected

Bond

Portfolio

14

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

Interest

Rate

Caps

Purchased

Description

Exercise

Rate

Counterparty

Expiration

Date

Notional

Amount

(000)

Value

Premiums

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

5Y-30Y

CMS

Index

Cap

.....

0.87

%

Goldman

Sachs

Bank

USA

03/18/21

USD

1,000,000

$

1,409,456

$

865,000

$

544,456

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

iShares

MSCI

Emerging

Markets

ETF

...............

2,000

02/19/21

USD

55.00

USD

10,334

$

(66,000)

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Put

10-Year

Interest

Rate

Swap

(a)

3

month

LIBOR

Quarterly

1.33%

Semi-Annual

Bank

of

America

NA

02/19/21

1.33

%

USD

525,000

$

(442,683)

(a)

Forward

settling

swaption.

Interest

Rate

Caps

Sold

Description

Exercise

Rate

Counterparty

Expiration

Date

Notional

Amount

(000)

Value

Premiums

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

5Y-30Y

CMS

Index

Cap

....

1.17

%

Goldman

Sachs

Bank

USA

03/18/2021

USD

1,000,000

$

(189,839)

$

(216,000)

$

26,161

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

3

month

BA

Semi-Annual

0.78%

Semi-Annual

08/12/22

(a)

08/12/23

CAD

10,145

$

8,305

$

—

$

8,305

1

day

REPO_CORRA

Semi-Annual

0.49%

Semi-Annual

08/16/22

(a)

08/16/23

CAD

10,145

7,890

—

7,890

1

day

REPO_CORRA

At

Termination

0.49%

At

Termination

08/25/22

(a)

08/25/23

CAD

10,400

7,500

—

7,500

1

day

REPO_CORRA

At

Termination

0.45%

At

Termination

09/15/22

(a)

09/15/23

CAD

24,000

6,878

—

6,878

1

day

SONIA

At

Termination

(0.17)%

At

Termination

09/21/22

(a)

09/21/23

GBP

3,100

(4,350)

—

(4,350)

1

day

SONIA

At

Termination

(0.06)%

At

Termination

10/07/22

(a)

10/07/23

GBP

10,200

2,002

—

2,002

1

day

REPO_CORRA

At

Termination

0.48%

At

Termination

10/07/22

(a)

10/07/23

CAD

26,725

9,478

—

9,478

3

month

BA

Semi-Annual

0.76%

Semi-Annual

10/24/22

(a)

10/24/23

CAD

14,000

1,330

—

1,330

1

day

REPO_CORRA

Semi-Annual

0.55%

Semi-Annual

11/10/22

(a)

11/10/23

CAD

13,363

9,416

—

9,416

3

month

BA

Semi-Annual

0.84%

Semi-Annual

12/01/22

(a)

12/01/23

CAD

278,000

113,503

—

113,503

0.38%

Semi-Annual

3

month

LIBOR

Quarterly

12/01/22

(a)

12/01/23

USD

215,000

(127,208)

—

(127,208)

1

day

REPO_CORRA

Semi-Annual

0.56%

Semi-Annual

12/05/22

(a)

12/05/23

CAD

13,623

9,261

—

9,261

3

month

BA

Semi-Annual

0.75%

Semi-Annual

N/A

05/26/25

CAD

1,760

678

—

678

3

month

BA

Semi-Annual

0.82%

Semi-Annual

N/A

06/03/25

CAD

590

1,590

—

1,590

3

month

BA

Semi-Annual

0.82%

Semi-Annual

N/A

06/03/25

CAD

590

1,486

—

1,486

3

month

BA

Semi-Annual

0.74%

Semi-Annual

N/A

09/18/25

CAD

1,340

(1,158)

—

(1,158)

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

15

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

i

Centrally

Cleared

Interest

Rate

Swaps

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

3

month

BA

Semi-Annual

0.75%

Semi-Annual

N/A

09/18/25

CAD

1,115

$

(681)

$

—

$

(681)

3

month

BA

Semi-Annual

0.74%

Semi-Annual

N/A

09/21/25

CAD

2,300

(2,081)

—

(2,081)

3

month

BA

Semi-Annual

0.74%

Semi-Annual

N/A

09/21/25

CAD

2,300

(1,812)

—

(1,812)

0.78%

Semi-Annual

3

month

BA

Semi-Annual

N/A

11/02/25

CAD

5,095

94

—

94

3

month

LIBOR

Quarterly

0.67%

Semi-Annual

N/A

09/23/30

USD

24,571

(518,861)

—

(518,861)

0.68%

Semi-Annual

3

month

LIBOR

Quarterly

N/A

09/23/30

USD

24,571

489,987

—

489,987

3

month

LIBOR

Quarterly

0.82%

Semi-Annual

N/A

11/06/30

USD

6,500

(54,730)

—

(54,730)

$

(41,483)

$

—

$

(41,483)

(a)

Forward

swap.

Centrally

Cleared

Inflation

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Reference

Frequency

Rate

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1

month

USCPI

At

Termination

(0.85)%

At

Termination

05/11/21

USD

90,000

$

(1,871,261)

$

—

$

(1,871,261)

1

month

USCPI

At

Termination

(0.77)%

At

Termination

05/12/21

USD

90,000

(1,815,868)

—

(1,815,868)

0.03%

At

Termination

1

month

USCPI

At

Termination

05/11/22

USD

90,000

3,022,843

—

3,022,843

0.10%

At

Termination

1

month

USCPI

At

Termination

05/12/22

USD

90,000

2,924,958

—

2,924,958

1.20%

At

Termination

1

month

HICPXT

At

Termination

01/15/30

EUR

2,250

(76,654)

—

(76,654)

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.48%

At

Termination

01/15/30

GBP

1,880

88,330

—

88,330

1.05%

At

Termination

1

month

HICPXT

At

Termination

02/15/30

EUR

2,070

(25,449)

—

(25,449)

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.27%

At

Termination

03/15/30

GBP

910

4,607

—

4,607

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.33%

At

Termination

05/15/30

GBP

590

6,497

—

6,497

0.99%

At

Termination

1

month

HICPXT

At

Termination

08/15/30

EUR

300

3,219

—

3,219

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.47%

At

Termination

08/15/30

GBP

1,140

16,719

—

16,719

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.46%

At

Termination

11/15/30

GBP

1,654

14,765

—

14,765

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.47%

At

Termination

11/15/30

GBP

553

6,255

—

6,255

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.32%

At

Termination

11/15/40

GBP

700

3,640

—

3,640

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.32%

At

Termination

11/15/40

GBP

680

1,910

—

1,910

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.33%

At

Termination

11/15/40

GBP

4,600

34,929

—

34,929

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.32%

At

Termination

12/15/40

GBP

1,150

4,122

—

4,122

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.38%

At

Termination

12/15/40

GBP

500

16,823

—

16,823

UK

Retail

Price

Index

All

Items

Monthly

At

Termination

3.39%

At

Termination

12/15/40

GBP

2,250

82,782

—

82,782

$

2,443,167

$

—

$

2,443,167

2020

BlackRock

Annual

Report

to

Shareholders

BlackRock

Inflation

Protected

Bond

Portfolio

16

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

REPO_CORRA

...................................

Canadian

Overnight

Repo

Rate

0.20

%

1

day

SONIA

.........................................

Sterling

Overnight

Index

Average

0.04

1

month

HICPXT

......................................

Harmonized

Index

Of

Consumer

Prices

Excluding

Tobacco

(0.36)

1

month

USCPI

.......................................

U.S.

Consumer

Price

Index

1.20

3

month

BA

..........................................

Canadian

Bankers

Acceptances

0.48

3

month

LIBOR

.......................................

London

Interbank

Offered

Rate

0.24

Balances

Reported

in

the

Consolidated

Statement

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

and

Options

Written

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

—

$

—

$

6,901,797

$

(4,500,113)

$

—

Options

Written

...................................................

N/A

N/A

1,179,756

(22,472)

(698,522)

(a)

Includes

cumulative

appreciation

(depreciation)

on

centrally

cleared

swaps,

as

reported

in

the

Consolidated

Schedule

of

Investments.

Only

current

day’s

variation

margin

is

reported

within

the

Consolidated

Statement

of

Assets

and

Liabilities

and

is

net

of

any

previously

paid

(received)

swap

premium

amounts.

As

of

period

end,

the

fair

values

of

derivative

financial

instruments

located

in

the

Consolidated

Statement

of

Assets

and

Liabilities

were

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Assets

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

appreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

126,040

$

—

$

102,145

$

—

$

228,185

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

1,129,157

—

—

1,129,157

Options

purchased

(b)

Investments

at

value

—

unaffiliated

(c)

...........

—

—

271,000

—

3,295,703

—

3,566,703

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

669,398

6,232,399

6,901,797

$

—

$

—

$

397,040

$

1,129,157

$

4,067,246

$

6,232,399

$

11,825,842

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

176,516

—

—

—

685,677

—

862,193

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

800,348

—

—

800,348

Options

written

(b)

Options

written

at

value

.....................

—

—

66,000

—

632,522

—

698,522

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

710,881

3,789,232

4,500,113

$

176,516

$

—

$

66,000

$

800,348

$

2,029,080

$

3,789,232

$

6,861,176

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts

and

centrally

cleared

swaps,

if

any,

are

reported

in

the

Consolidated

Schedule

of

Investments.

In

the

Consolidated

Statement

of

Assets

and

Liabilities,

only

current

day's

variation

margin

is

reported

in

receivables

or

payables

and

the

net

cumulative

unrealized

appreciation

(depreciation)

is

included

in

accumulated

earnings

(loss).

(b)

Includes

forward

settling

swaptions.

(c)

Includes

options

purchased

at

value

as

reported

in

the

Consolidated

Schedule

of

Investments.

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

17

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Consolidated

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

For

the

year

ended

December

31,

2020,

the

effect

of

derivative

financial

instruments

in

the

Consolidated

Statement

of

Operations

was

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Realized

Gain

(Loss)

from:

Futures

contracts

.......................

$

1,298,659

$

—

$

181,712

$

—

$

(21,347,097)

$

—

$

(19,866,726)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(4,394,296)

—

—

(4,394,296)

Options

purchased

(a)

....................

—

—

(70,314)

(2,877,754)

(6,606,302)

—

(9,554,370)

Options

written

........................

—

—

134,219

3,661,081

7,615,175

—

11,410,475

Swaps

..............................

—

—

—

—

(3,924,231)

(1,974,625)

(5,898,856)

$

1,298,659

$

—

$

245,617

$

(3,610,969)

$

(24,262,455)

$

(1,974,625)

$

(28,303,773)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on:

Futures

contracts

.......................

(176,516)

—

118,715

—

(2,451,956)

—

(2,509,757)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(1,416,768)

—

—

(1,416,768)

Options

purchased

(b)

....................

—

—

84,529

—

717,010

—

801,539

Options

written

........................

—

—

(22,472)

—

30,887

38

8,453

Swaps

..............................

—

—

—

—

(293,589)

2,491,058

2,197,469

$

(176,516)

$

—

$

180,772

$

(1,416,768)

$

(1,997,648)

$

2,491,096

$

(919,064)

(a)

Options

purchased

are

included

in

net

realized

gain

(loss)

from

investments

—

unaffiliated.

(b)

Options

purchased

are

included

in

net

change

in

unrealized

appreciation

(depreciation)

on

investments

—

unaffiliated.

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts:

Average

notional

value

of

contracts

—

long

..................................................................................

$

441,011,985

Average

notional

value

of

contracts

—

short

.................................................................................

754,700,134

Forward

foreign

currency

exchange

contracts:

Average

amounts

purchased

—

in

USD

....................................................................................

160,456,319

Average

amounts

sold

—

in

USD

........................................................................................

78,418,371

Options:

Average

value

of

option

contracts

purchased

................................................................................

2,634,033

Average

value

of

option

contracts

written

...................................................................................

2,423,704

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

96,875,000

Average

notional

value

of

swaption

contracts

written

...........................................................................

255,544,500

Interest

rate

swaps:

Average

notional

value

—

pays

fixed

rate

...................................................................................

203,681,349

Average

notional

value

—

receives

fixed

rate

................................................................................

281,665,020

Inflation

swaps:

Average

notional

value

—

pays

fixed

rate

...................................................................................

181,111,106

Average

notional

value

—

receives

fixed

rate

................................................................................

179,016,329

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments:

$

1,298,659

Futures

contracts

....................................................................................

$

140,869

$

163,876

Forward

foreign

currency

exchange

contracts

.................................................................

1,129,157

800,348

Options

(a)(b)

........................................................................................

3,566,703

698,522

Swaps

—

Centrally

cleared

.............................................................................

420,879

—

Total

derivative

assets

and

liabilities

in

the

Consolidated

Statement

of

Assets

and

Liabilities

....................................

$

5,257,608

$

1,662,746

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(832,748)

(229,876)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

4,424,860

$

1,432,870

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Consolidated

Statement

of

Assets

and

Liabilities

and

reported

in

the

Consolidated

Schedule

of

Investments.

(b)

Includes

forward

settling

swaptions.

2020

BlackRock

Annual

Report

to

Shareholders

BlackRock

Inflation

Protected

Bond

Portfolio

18

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

The

following

tables

present

the

Fund's

derivative

assets

and

liabilities

by

counterparty

net

of

amounts

available

for

offset

under

an

MNA

and

net

of

the

related

collateral

received

and

pledged

by

the

Fund:

Counterparty

Derivative

Assets

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Received

(b)

Cash

Collateral

Rece

ived

Net

Amount

of

Derivative

Assets

(c)

Bank

of

America

NA

..............................

$

1,956,097

$

(595,650)

$

(1,360,447)

$

—

$

—

Barclays

Bank

plc

................................

132,663

(33,037)

—

—

99,626

BNP

Paribas

SA

.................................

42,517

(1,212)

—

—

41,305

Citibank

NA

....................................

164,965

(80,936)

—

—

84,029

Deutsche

Bank

AG

...............................

16,680

(16,680)

—

—

—

Goldman

Sachs

Bank

USA

..........................

1,409,456

(189,839)

—

(1,120,000)

99,617

JPMorgan

Chase

Bank

NA

..........................

459,723

(47,717)

—

—

412,006

Morgan

Stanley

&

Co.

International

plc

..................

59,726

(29,257)

—

—

30,469

Royal

Bank

of

Canada

.............................

16,170

—

—

—

16,170

State

Street

Bank

and

Trust

Co.

......................

166,863

(20,924)

—

—

145,939

$

4,424,860

$

(1,015,252)

$

(1,360,447)

$

(1,120,000)

$

929,161

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

Cash

Collateral

Pledged

(d)

Net

Amount

of

Derivative

Liabilities

(e)

Bank

of

America

NA

..............................

$

595,650

$

(595,650)

$

—

$

—

$

—

Barclays

Bank

plc

................................

33,037

(33,037)

—

—

—

BNP

Paribas

SA

.................................

1,212

(1,212)

—

—

—

Citibank

NA

....................................

80,936

(80,936)

—

—

—

Deutsche

Bank

AG

...............................

48,470

(16,680)

—

—

31,790

Goldman

Sachs

Bank

USA

..........................

189,839

(189,839)

—

—

—

HSBC

Bank

plc

..................................

47,627

—

—

—

47,627

JPMorgan

Chase

Bank

NA

..........................

47,717

(47,717)

—

—

—

Morgan

Stanley

&

Co.

International

plc

..................

29,257

(29,257)

—

—

—

Standard

Chartered

Bank

...........................

338,201

—

—

—

338,201

State

Street

Bank

and

Trust

Co.

......................

20,924

(20,924)

—

—

—

$

1,432,870

$

(1,015,252)

$

—

$

—

$

417,618

(a)

The

amount

of

derivatives

available

for

offset

is

limited

to

the

amount

of

derivative

assets

and/or

liabilities

that

are

subject

to

an

MNA.

(b)

Excess

of

collateral

received

from

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

(c)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

(d)

Excess

of

collateral

pledged

to

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

(e)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

BlackRock

Inflation

Protected

Bond

Portfolio

Consolidated

Schedule

of

Investments

19

Consolidated

Schedule

of

Investments

(continued)

December

31,

2020

See

notes

to

consolidated

financial

statements.

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

Consolidated

Financial

Statements.

The

following

tables

summarize

the

Fund’s

investments

and

derivative

financial

instruments

categorized

in

the

disclosure

hierarchy.

The

breakdown

of

the

Fund's

investments

into

major

categories

is

disclosed

in

the

Consolidated

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets:

Investments:

Long-Term

Investments:

Asset-Backed

Securities

...................................

$

—

$

26,329,884

$

—

$

26,329,884

Corporate

Bonds

........................................

—

1,035,000

—

1,035,000

Foreign

Government

Obligations

..............................

—

129,131,718

—

129,131,718

Investment

Companies

....................................

14,946,220

—

—

14,946,220

Non-Agency

Mortgage-Backed

Securities

........................

—

1,697,313

—

1,697,313

U.S.

Government

Sponsored

Agency

Securities

....................

—

28,287,587

2,691,972

30,979,559

U.S.

Treasury

Obligations

...................................

—

2,234,154,035

—

2,234,154,035

Short-Term

Securities:

Foreign

Government

Obligations

..............................

—

64,902,985

—

64,902,985

Money

Market

Funds

......................................

12,923,082

—

—

12,923,082

Options

Purchased:

Equity

contracts

..........................................

271,000

—

—

271,000

Interest

rate

contracts

......................................

—

3,295,703

—

3,295,703

$

28,140,302

$

2,488,834,225

$

2,691,972

$

2,519,666,499

Derivative

Financial

Instruments

(a)

Assets:

Equity

contracts

...........................................

$

126,040

$

—

$

—

$

126,040

Foreign

currency

exchange

contracts

............................

—

1,129,157

—

1,129,157

Interest

rate

contracts

.......................................

102,145

669,398

—

771,543

Other

contracts

...........................................

—

6,232,399

—

6,232,399

Liabilities:

Commodity

contracts

.......................................

(176,516)

—

—

(176,516)

Equity

contracts

...........................................

(66,000)

—

—

(66,000)

Foreign

currency

exchange

contracts

............................

—

(800,348)

—

(800,348)

Interest

rate

contracts

.......................................

(685,677)

(1,343,403)

—

(2,029,080)

Other

contracts

...........................................

—

(3,789,232)

—

(3,789,232)

$

(700,008)

$

2,097,971

$

—

$

1,397,963

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

The

Fund

may

hold

assets

and/or

liabilities

in

which

the

fair

value

approximates

the

carrying

amount

or

face

value,

including

accrued

interest,

for

financial

statement

purposes.

As

of

period

end,

reverse

repurchase

agreements

of

$337,872,563

are

categorized

as

Level

2

within

the

disclosure

hierarchy.

Consolidated

Statement

of

Assets

and

Liabilities

December

31,

2020

2020

BlackRock

Annual

Report

to

Shareholders

20

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

ASSETS

Investments

at

value

—

unaffiliated

(cost

—

$2,269,517,115)

............................................................................

$

2,491,797,197‌

Investments

at

value

—

affiliated

(cost

—

$27,713,244)

................................................................................

27,869,302‌

Cash

.................................................................................................................

6,619,679‌

Cash

pledged:

–‌

Collateral

—

OTC

derivatives

................................................................................................

2,640,000‌

Futures

contracts

........................................................................................................

3,408,820‌

Centrally

cleared

swaps

....................................................................................................

2,997,000‌

Foreign

currency

at

value

(cost

—

$8,388,950)

......................................................................................

9,091,735‌

Receivables:

–‌

Investments

sold

........................................................................................................

7,411,868‌

Capital

shares

sold

.......................................................................................................

9,533,566‌

Dividends

—

affiliated

.....................................................................................................

265‌

Interest

—

unaffiliated

.....................................................................................................

6,400,723‌

From

the

Manager

.......................................................................................................

195,381‌

Variation

margin

on

futures

contracts

...........................................................................................

140,869‌

Variation

margin

on

centrally

cleared

swaps

......................................................................................

420,879‌

Unrealized

appreciation

on:

–‌

Forward

foreign

currency

exchange

contracts

.....................................................................................

1,129,157‌

Prepaid

expenses

.........................................................................................................

110,765‌

Total

assets

.............................................................................................................

2,569,767,206‌

LIABILITIES

Cash

received:

–‌

Collateral

—

reverse

repurchase

agreements

.....................................................................................

456‌

Collateral

—

OTC

derivatives

................................................................................................

1,120,000‌

Options

written

at

value

(premium

received

$1,855,806)

...............................................................................

698,522‌

Reverse

repurchase

agreements

at

value

.........................................................................................

337,872,563‌

Payables:

–‌

Investments

purchased

....................................................................................................

2,276,172‌

Administration

fees

.......................................................................................................

71,737‌

Capital

shares

redeemed

...................................................................................................

3,578,184‌

Income

dividend

distributions

................................................................................................

120,828‌

Investment

advisory

fees

..................................................................................................

388,483‌

Trustees'

and

Officer's

fees

.................................................................................................

3,007‌

Other

affiliate

fees

.......................................................................................................

7,629‌

Service

and

distribution

fees

.................................................................................................

134,303‌

Transfer

agent

fees

......................................................................................................

747,929‌

Variation

margin

on

futures

contracts

...........................................................................................

163,876‌

Other

accrued

expenses

...................................................................................................

281,100‌

Unrealized

depreciation

on:

–‌

Forward

foreign

currency

exchange

contracts

.....................................................................................

800,348‌

Total

liabilities

............................................................................................................

348,265,137‌

NET

ASSETS

............................................................................................................

$

2,221,502,069‌

NET

ASSETS

CONSIST

OF

Paid-in

capital

............................................................................................................

$

2,009,902,030‌

Accumulated

earnings

......................................................................................................

211,600,039‌

NET

ASSETS

............................................................................................................

$

2,221,502,069‌

Consolidated

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2020

21

Consolidated

Financial

Statements

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

NET

ASSET

VALUE

Institutional

Net

assets

........................................................................................................

$

1,260,217,647‌

Shares

outstanding

.................................................................................................

105,796,345‌

Net

asset

value

....................................................................................................

$

11.91‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Service

Net

assets

........................................................................................................

$

13,891,837‌

Shares

outstanding

.................................................................................................

1,184,732‌

Net

asset

value

....................................................................................................

$

11.73‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Investor

A

Net

assets

........................................................................................................

$

457,664,544‌

Shares

outstanding

.................................................................................................

39,458,168‌

Net

asset

value

....................................................................................................

$

11.60‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Investor

C

Net

assets

........................................................................................................

$

29,357,687‌

Shares

outstanding

.................................................................................................

2,640,477‌

Net

asset

value

....................................................................................................

$

11.12‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Class

K

Net

assets

........................................................................................................

$

460,370,354‌

Shares

outstanding

.................................................................................................

39,250,495‌

Net

asset

value

....................................................................................................

$

11.73‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Consolidated

Statement

of

Operations

Year

Ended

December

31,

2020

2020

BlackRock

Annual

Report

to

Shareholders

22

(a)

Includes

net

inflationary

and

deflationary

adjustments.

See

Note

4

of

the

Notes

to

Consolidated

Financial

Statements.

BlackRock

Inflation

Protected

Bond

Portfolio

INVESTMENT

INCOME

Dividends

—

affiliated

.....................................................................................................

$

625,441‌

Dividends

—

unaffiliated

...................................................................................................

664‌

Interest

—

unaffiliated

(a)

...................................................................................................

35,993,523‌

Total

investment

income

.....................................................................................................

36,619,628‌

EXPENSES

Investment

advisory

......................................................................................................

4,910,642‌

Transfer

agent

—

class

specific

..............................................................................................

3,176,340‌

Service

and

distribution

—

class

specific

........................................................................................

1,487,252‌

Administration

.........................................................................................................

787,723‌

Administration

—

class

specific

..............................................................................................

400,851‌

Accounting

services

......................................................................................................

181,109‌

Professional

...........................................................................................................

158,617‌

Registration

...........................................................................................................

118,757‌

Custodian

.............................................................................................................

117,859‌

Printing

and

postage

.....................................................................................................

65,910‌

Trustees

and

Officer

......................................................................................................

23,011‌

Miscellaneous

..........................................................................................................

61,853‌

Total

expenses

excluding

interest

expense

.........................................................................................

11,489,924‌

Interest

expense

..........................................................................................................

1,770,051‌

Total

expenses

...........................................................................................................

13,259,975‌

Less:

–‌

Administration

fees

waived

—

class

specific

......................................................................................

(400,722‌)

Fees

waived

and/or

reimbursed

by

the

Manager

...................................................................................

(604,543‌)

Transfer

agent

fees

waived

and/or

reimbursed

—

class

specific

.........................................................................

(2,370,381‌)

Total

expenses

after

fees

waived

and/or

reimbursed

..................................................................................

9,884,329‌

Net

investment

income

......................................................................................................

26,735,299‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

188,595,489‌

Net

realized

gain

(loss)

from:

$

–‌

Investments

—

affiliated

.................................................................................................

5,976,205‌

Investments

—

unaffiliated

...............................................................................................

68,023,018‌

Forward

foreign

currency

exchange

contracts

...................................................................................

(4,394,296‌)

Foreign

currency

transactions

.............................................................................................

(92,335‌)

Futures

contracts

......................................................................................................

(19,866,726‌)

Options

written

.......................................................................................................

11,410,475‌

Swaps

.............................................................................................................

(5,898,856‌)

A

55,157,485‌

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

affiliated

.................................................................................................

156,058‌

Investments

—

unaffiliated

...............................................................................................

134,314,922‌

Forward

foreign

currency

exchange

contracts

...................................................................................

(1,416,768‌)

Foreign

currency

translations

..............................................................................................

687,627‌

Futures

contracts

......................................................................................................

(2,509,757‌)

Options

written

.......................................................................................................

8,453‌

Swaps

.............................................................................................................

2,197,469‌

A

133,438,004‌

Net

realized

and

unrealized

gain

...............................................................................................

188,595,489‌

NET

INCREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

......................................................................

$

215,330,788‌

See

notes

to

consolidated

financial

statements.

Consolidated

Statements

of

Changes

in

Net

Assets

23

Consolidated

Financial

Statements

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

Year

Ended

December

31,

2020

2019

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..............................................................................

$

26,735,299‌

$

42,837,393‌

Net

realized

gain

..................................................................................

55,157,485‌

8,060,781‌

Net

change

in

unrealized

appreciation

....................................................................

133,438,004‌

114,984,179‌

Net

increase

in

net

assets

resulting

from

operations

.............................................................

215,330,788‌

165,882,353‌

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

Institutional

....................................................................................

(17,679,429‌)

(33,035,518‌)

Service

.......................................................................................

(194,974‌)

(424,951‌)

Investor

A

.....................................................................................

(5,716,667‌)

(5,697,428‌)

Investor

C

.....................................................................................

(513,983‌)

(1,533,106‌)

Class

K

.......................................................................................

(6,084,392‌)

(7,377,395‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

...................................................

(30,189,445‌)

(48,068,398‌)

CAPITAL

SHARE

TRANSACTIONS

Net

decrease

in

net

assets

derived

from

capital

share

transactions

...................................................

(82,832,866‌)

(117,178,710‌)

NET

ASSETS

Total

increase

in

net

assets

.............................................................................

102,308,477‌

635,245‌

Beginning

of

year

....................................................................................

2,119,193,592‌

2,118,558,347‌

End

of

year

........................................................................................

$

2,221,502,069‌

$

2,119,193,592‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Consolidated

Statement

of

Cash

Flows

Year

Ended

December

31,

2020

2020

BlackRock

Annual

Report

to

Shareholders

24

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

CASH

PROVIDED

BY

OPERATING

ACTIVITIES

–

Net

increase

in

net

assets

resulting

from

operations

...............................................................................

$

215,330,788‌

Adjustments

to

reconcile

net

increase

in

net

assets

resulting

from

operations

to

net

cash

provided

by

operating

activities:

—‌

Proceeds

from

sales

of

long-term

investments

.................................................................................

8,715,

750

,

818‌

Purchases

of

long-term

investments

.......................................................................................

(8,305,429,702‌)

Net

purchases

of

short-term

securities

......................................................................................

(74,559,685‌)

Amortization

of

premium

and

accretion

of

discount

on

investments

...................................................................

(18,110,940‌)

Premiums

received

from

options

written

.....................................................................................

26,803,777‌

Premiums

paid

on

closing

options

written

....................................................................................

(14,756,176‌)

Net

realized

(gain)

loss

on

investments

and

options

written

........................................................................

(85,409,698‌)

Net

unrealized

(appreciation)

depreciation

on

investments,

options

written,

forward

foreign

currency

exchange

contracts,

foreign

currency

translations

and

swaps

...

(133,

750

,

292‌

)

(Increase)

Decrease

in

Assets:

Receivables:

—‌

Dividends

—

affiliated

...............................................................................................

12,959‌

Dividends

—

unaffiliated

..............................................................................................

121‌

Interest

—

unaffiliated

...............................................................................................

607,825‌

From

the

Manager

..................................................................................................

12,683‌

Variation

margin

on

futures

contracts

.....................................................................................

366,741‌

Variation

margin

on

centrally

cleared

swaps

.................................................................................

(192,566‌)

S

waps

..........................................................................................................

653‌

Prepaid

expenses

....................................................................................................

(17,617‌)

Increase

(Decrease)

in

Liabilities:

—‌

Cash

received:

—‌

Collateral

—

reverse

repurchase

agreements

................................................................................

(279,544‌)

Collateral

—

OTC

derivatives

..........................................................................................

1,120,000‌

Payables:

—‌

Administration

fees

.................................................................................................

1,406‌

Interest

expense

and

fees

............................................................................................

(600,876‌)

Investment

advisory

fees

.............................................................................................

(26,924‌)

Trustees'

and

Officer's

fees

............................................................................................

48‌

Other

affiliates

fees

.................................................................................................

2,915‌

Service

and

distribution

fees

...........................................................................................

(8

,

054‌)

Transfer

agent

fees

................................................................................................

747,929‌

Variation

margin

on

futures

contracts

.....................................................................................

156,389‌

Other

accrued

expenses

.............................................................................................

(639,10

2‌

)

Net

cash

provided

by

operating

activities

......................................................................................

327,

133

,

876‌

CASH

USED

FOR

FINANCING

ACTIVITIES

Cash

dividends

paid

to

shareholders

.........................................................................................

(718,476‌)

Payments

on

redemption

of

capital

shares

.....................................................................................

(1,133,436,372‌)

Proceeds

from

issuance

of

capital

shares

.....................................................................................

1,016,954,910‌

Net

borrowing

of

reverse

repurchase

agreements

................................................................................

(206,096,797‌)

Net

cash

used

for

financing

activities

.........................................................................................

(323,296,735‌)

CASH

IMPACT

FROM

FOREIGN

EXCHANGE

FLUCTUATIONS

Cash

impact

from

foreign

exchange

fluctuations

.................................................................................

684,680‌

CASH

AND

FOREIGN

CURRENCY

Net

increase

in

restricted

and

unrestricted

cash

and

foreign

currency

...................................................................

4

,

521

,

821‌

Restricted

and

unrestricted

cash

and

foreign

currency

at

beginning

of

year

...............................................................

20,235,413‌

Restricted

and

unrestricted

cash

and

foreign

currency

at

end

of

year

...................................................................

$

2

4

,

757

,

234‌

SUPPLEMENTAL

DISCLOSURE

OF

CASH

FLOW

INFORMATION

Cash

paid

during

the

year

for

interest

expense

..................................................................................

$

2

,

370

,

927‌

NON-CASH

FINANCING

ACTIVITIES

Capital

shares

issued

in

reinvestment

of

dividends

and

distributions

paid

to

shareholders

.....................................................

$

29,350,141‌

Consolidated

Statement

of

Cash

Flows

(continued)

Year

Ended

December

31,

2020

25

Consolidated

Financial

Statements

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

h

RECONCILIATION

OF

RESTRICTED

AND

UNRESTRICTED

CASH

AND

FOREIGN

CURRENCY

AT

THE

END

OF

YEAR

TO

THE

CONSOLIDATED

STATEMENT

OF

ASSETS

AND

LIABILI

TIES:

24,757,234

Cash

...........................................................................................................

$

6,619,679

Cash

pledged:

—

Collateral

—

OTC

derivatives

.........................................................................................

2,640,000

Futures

contracts

.................................................................................................

3,408,820

Centrally

cleared

swaps

.............................................................................................

2,997,000

Foreign

currency

at

value

..............................................................................................

9,091,735

$

24,757,234

Consolidated

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2020

BlackRock

Annual

Report

to

Shareholders

26

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Aggregate

total

return.

(f)

Excludes

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds

of

0.01%.

(g)

Annualized.

(h)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

Institutional

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Net

asset

value,

beginning

of

period

...............

$

10.82‌

$

10.23‌

$

10.71‌

$

10.62‌

$

10.89‌

$

10.58‌

Net

investment

income

(a)

.......................

0.16‌

0.22‌

0.28‌

0.24‌

0.06‌

0.11‌

Net

realized

and

unrealized

gain

(loss)

.............

1.11‌

0.62‌

(0.48‌)

0.09‌

(0.32‌)

0.51‌

Net

increase

(decrease)

from

investment

operations

......

1.27‌

0.84‌

(0.20‌)

0.33‌

(0.26‌)

0.62‌

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

....................

(0.18‌)

(0.25‌)

(0.25‌)

(0.24‌)

—‌

(0.20‌)

R

eturn

of

capital

.............................

—‌

—‌

(0.03‌)

(0.00‌)

(c)

(0.01‌)

(0.11‌)

Total

distributions

.............................

(0.18‌)

(0.25‌)

(0.28‌)

(0.24‌)

(0.01‌)

(0.31‌)

Net

asset

value,

end

of

period

....................

$

11.91‌

$

10.82‌

$

10.23‌

$

10.71‌

$

10.62‌

$

10.89‌

Total

Return

(d)

11.75%

8.26%

(1.88)%

—

—

—

Based

on

net

asset

value

........................

11.75%

8.26%

(1.88)%

3.09%

(2.35)%

(e)

5.97%

Ratios

to

Average

Net

Assets

Total

expenses

...............................

0.61%

(f)

0.80%

0.63%

0.56%

0.61%

(g)

0.60%

Total

expenses

after

fees

waived

and/or

reimbursed

......

0.43%

(f)

0.65%

0.50%

0.40%

0.40%

(g)

0.48%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

......................

0.34%

(f)

0.34%

0.34%

0.35%

0.36%

(g)

0.42%

Net

investment

income

.........................

1.39%

(f)

2.12%

2.67%

2.26%

2.06%

(g)

0.99%

Supplemental

Data

Net

assets,

end

of

period

(000)

....................

$

1,260,218‌

$

1,343,773‌

$

1,434,877‌

$

1,554,098‌

$

1,485,583‌

$

1,584,439‌

Portfolio

turnover

rate

(h)

.........................

330%

252%

176%

76%

7%

45%

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Portfolio

turnover

rate

(excluding

MDRs)

..............

319%

220%

172%

—%

—%

—%

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

27

Consolidated

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Aggregate

total

return.

(f)

Excludes

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds

of

0.01%.

(g)

Annualized.

(h)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees.

Excluding

the

recoupment

of

past

waived

and/or

reimbursed

fees

for

the

year

ended

September

30,

2016,

the

expense

ratio

would

have

been

0.86%.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

Service

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Net

asset

value,

beginning

of

period

...............

$

10.67‌

$

10.10‌

$

10.57‌

$

10.50‌

$

10.77‌

$

10.49‌

Net

investment

income

(a)

.......................

0.13‌

0.19‌

0.25‌

0.20‌

0.05‌

0.08‌

Net

realized

and

unrealized

gain

(loss)

.............

1.09‌

0.61‌

(0.46‌)

0.09‌

(0.31‌)

0.50‌

Net

increase

(decrease)

from

investment

operations

......

1.22‌

0.80‌

(0.21‌)

0.29‌

(0.26‌)

0.58‌

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

....................

(0.16‌)

(0.23‌)

(0.23‌)

(0.22‌)

—‌

(0.19‌)

R

eturn

of

capital

.............................

—‌

—‌

(0.03‌)

(0.00‌)

(c)

(0.01‌)

(0.11‌)

Total

distributions

.............................

(0.16‌)

(0.23‌)

(0.26‌)

(0.22‌)

(0.01‌)

(0.30‌)

Net

asset

value,

end

of

period

....................

$

11.73‌

$

10.67‌

$

10.10‌

$

10.57‌

$

10.50‌

$

10.77‌

Total

Return

(d)

11.51%

7.97%

(2.03)%

—

—

—

Based

on

net

asset

value

........................

11.51%

7.97%

(2.03)%

2.74%

(2.38)%

(e)

5.66%

Ratios

to

Average

Net

Assets

Total

expenses

...............................

0.85%

(f)

1.05%

0.95%

0.82%

0.86%

(g)

0.86%

(h)

Total

expenses

after

fees

waived

and/or

reimbursed

......

0.68%

(f)

0.90%

0.75%

0.65%

0.66%

(g)

0.78%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

......................

0.59%

(f)

0.59%

0.59%

0.60%

0.62%

(g)

0.71%

Net

investment

income

.........................

1.13%

(f)

1.79%

2.46%

1.94%

1.80%

(g)

0.73%

Supplemental

Data

Net

assets,

end

of

period

(000)

....................

$

13,892‌

$

13,584‌

$

21,040‌

$

28,986‌

$

41,422‌

$

44,565‌

Portfolio

turnover

rate

(

i

)

..........................

330%

252%

176%

76%

7%

45%

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Portfolio

turnover

rate

(excluding

MDRs)

..............

319%

220%

172%

—%

—%

—%

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2020

BlackRock

Annual

Report

to

Shareholders

28

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Aggregate

total

return.

(f)

Excludes

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds

of

0.01%.

(g)

Annualized.

(h)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

Investor

A

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Net

asset

value,

beginning

of

period

...............

$

10.55‌

$

9.99‌

$

10.46‌

$

10.39‌

$

10.65‌

$

10.38‌

Net

investment

income

(a)

.......................

0.13‌

0.20‌

0.25‌

0.21‌

0.05‌

0.05‌

Net

realized

and

unrealized

gain

(loss)

.............

1.08‌

0.59‌

(0.46‌)

0.07‌

(0.30‌)

0.52‌

Net

increase

(decrease)

from

investment

operations

......

1.21‌

0.79‌

(0.21‌)

0.28‌

(0.25‌)

0.57‌

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

....................

(0.16‌)

(0.23‌)

(0.23‌)

(0.21‌)

—‌

(0.21‌)

R

eturn

of

capital

.............................

—‌

—‌

(0.03‌)

(0.00‌)

(c)

(0.01‌)

(0.09‌)

Total

distributions

.............................

(0.16‌)

(0.23‌)

(0.26‌)

(0.21‌)

(0.01‌)

(0.30‌)

Net

asset

value,

end

of

period

....................

$

11.60‌

$

10.55‌

$

9.99‌

$

10.46‌

$

10.39‌

$

10.65‌

Total

Return

(d)

11.53%

7.94%

(2.08)%

—

—

—

Based

on

net

asset

value

........................

11.53%

7.94%

(2.08)%

2.75%

(2.32)%

(e)

5.59%

Ratios

to

Average

Net

Assets

Total

expenses

...............................

0.93%

(f)

1.27%

1.13%

0.95%

1.02%

(g)

0.96%

Total

expenses

after

fees

waived

and/or

reimbursed

......

0.68%

(f)

0.90%

0.75%

0.65%

0.66%

(g)

0.83%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

......................

0.59%

(f)

0.59%

0.59%

0.60%

0.62%

(g)

0.76%

Net

investment

income

.........................

1.18%

(f)

1.89%

2.42%

1.98%

1.80%

(g)

0.45%

Supplemental

Data

Net

assets,

end

of

pe

r

iod

(000)

....................

$

457,665‌

$

359,449‌

$

248,530‌

$

301,045‌

$

352,596‌

$

358,182‌

Portfolio

turnover

rate

(h)

.........................

330%

252%

176%

76%

7%

45%

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Portfolio

turnover

rate

(excluding

MDRs)

..............

319%

220%

172%

—%

—%

—%

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

29

Consolidated

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Aggregate

total

return.

(f)

Excludes

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds

of

0.01%.

(g)

Annualized.

(h)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees

with

no

financial

impact

to

the

expense

ratios.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

Investor

C

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Net

asset

value,

beginning

of

period

...............

$

10.17‌

$

9.66‌

$

10.13‌

$

10.09‌

$

10.36‌

$

10.16‌

Net

investment

income

(loss)

(a)

...................

0.01‌

0.10‌

0.17‌

0.13‌

0.03‌

(0.02‌)

Net

realized

and

unrealized

gain

(loss)

.............

1.07‌

0.59‌

(0.44‌)

0.07‌

(0.29‌)

0.50‌

Net

increase

(decrease)

from

investment

operations

......

1.08‌

0.69‌

(0.27‌)

0.20‌

(0.26‌)

0.48‌

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

....................

(0.13‌)

(0.18‌)

(0.18‌)

(0.16‌)

—‌

(0.20‌)

R

eturn

of

capital

.............................

—‌

—‌

(0.02‌)

(0.00‌)

(c)

(0.01‌)

(0.08‌)

Total

distributions

.............................

(0.13‌)

(0.18‌)

(0.20‌)

(0.16‌)

(0.01‌)

(0.28‌)

Net

asset

value,

end

of

period

....................

$

11.12‌

$

10.17‌

$

9.66‌

$

10.13‌

$

10.09‌

$

10.36‌

Total

Return

(d)

10.64%

7.17%

(2.75)%

—

—

—

Based

on

net

asset

value

........................

10.64%

7.17%

(2.75)%

1.97%

(2.51)%

(e)

4.83%

Ratios

to

Average

Net

Assets

Total

expenses

...............................

1.57%

(f)

1.83%

1.63%

1.58%

1.61%

(g)(h)

1.60%

Total

expenses

after

fees

waived

and/or

reimbursed

......

1.43%

(f)

1.65%

1.50%

1.40%

1.41%

(g)

1.53%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

......................

1.34%

(f)

1.34%

1.34%

1.35%

1.37%

(g)

1.47%

Net

investment

income

(loss)

.....................

0.06%

(f)

1.04%

1.68%

1.25%

1.06%

(g)

(0.15)%

Supplemental

Data

Net

assets,

end

of

pe

r

iod

(000)

....................

$

29,358‌

$

62,226‌

$

99,108‌

$

138,050‌

$

183,525‌

$

197,741‌

Portfolio

turnover

rate

(

i

)

..........................

330%

252%

176%

76%

7%

45%

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Portfolio

turnover

rate

(excluding

MDRs)

..............

319%

220%

172%

—%

—%

—%

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2020

BlackRock

Annual

Report

to

Shareholders

30

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Aggregate

total

return.

(f)

Excludes

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds

of

0.01%.

(g)

Annualized.

(h)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

consolidated

financial

statements.

BlackRock

Inflation

Protected

Bond

Portfolio

Class

K

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Net

asset

value,

beginning

of

period

...............

$

10.65‌

$

10.07‌

$

10.54‌

$

10.45‌

$

10.71‌

$

10.41‌

Net

investment

income

(a)

.......................

0.17‌

0.22‌

0.28‌

0.24‌

0.06‌

0.14‌

Net

realized

and

unrealized

gain

(loss)

.............

1.09‌

0.61‌

(0.47‌)

0.08‌

(0.31‌)

0.47‌

Net

increase

(decrease)

from

investment

operations

......

1.26‌

0.83‌

(0.19‌)

0.32‌

(0.25‌)

0.61‌

Distributions

(b)

–

–

–

–

–

–

From

net

investment

income

....................

(0.18‌)

(0.25‌)

(0.25‌)

(0.23‌)

—‌

(0.19‌)

R

eturn

of

capital

.............................

—‌

—‌

(0.03‌)

(0.00‌)

(c)

(0.01‌)

(0.12‌)

Total

distributions

.............................

(0.18‌)

(0.25‌)

(0.28‌)

(0.23‌)

(0.01‌)

(0.31‌)

Net

asset

value,

end

of

period

....................

$

11.73‌

$

10.65‌

$

10.07‌

$

10.54‌

$

10.45‌

$

10.71‌

Total

Return

(d)

11.85%

8.28%

(1.81)%

—

—

—

Based

on

net

asset

value

........................

11.85%

8.28%

(1.81)%

3.14%

(2.29)%

(e)

5.98%

Ratios

to

Average

Net

Assets

Total

expenses

...............................

0.43%

(f)

0.65%

0.53%

0.43%

0.46%

(g)

0.47%

Total

expenses

after

fees

waived

and/or

reimbursed

......

0.38%

(f)

0.60%

0.45%

0.35%

0.34%

(g)

0.39%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

......................

0.29%

(f)

0.29%

0.29%

0.30%

0.30%

(g)

0.32%

Net

investment

income

.........................

1.48%

(f)

2.14%

2.70%

2.29%

2.14%

(g)

1.29%

Supplemental

Data

Net

assets,

end

of

pe

r

iod

(000)

....................

$

460,370‌

$

340,162‌

$

315,003‌

$

498,248‌

$

405,439‌

$

353,536‌

Portfolio

turnover

rate

(h)

.........................

330%

252%

176%

76%

7%

45%

Year

Ended

December

31,

Period

from

10/01/16

to

12/31/16

Year

Ended

09/30/2016

2020

2019

2018

2017

Portfolio

turnover

rate

(excluding

MDRs)

..............

319%

220%

172%

—%

—%

—%

Notes

to

Consolidated

Financial

Statements

31

Notes

to

Consolidated

Financial

Statements

ORGANIZATION 

BlackRock

Funds

V (the

“Trust”)

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

an

open-end

management

investment

company.

The Trust

is

organized

as

a Massachusetts

business

trust.

BlackRock

Inflation

Protected

Bond

Portfolio

(the

"Fund")

is

a

series

of

the

Trust.

The

Fund

is

classified

as

diversified.

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,

Service

and

Class K

Shares

are

sold

only

to

certain

eligible

investors.

Service,

Investor

A

and

Investor

C

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares,

and

Investor

C

Shares

also

bear

certain

expenses

related

to

the

distribution

of

such

shares.

Investor

A

and

Investor

C

Shares

are

generally

available

through

financial

intermediaries.

Each

class

has

exclusive

voting

rights

with

respect

to

matters

relating

to

its

shareholder

servicing

and

distribution

expenditures

(except

that

Investor C

shareholders

may

vote

on

material

changes

to

the

Investor

A

Shares

distribution

and

service

plan).

(a)

Investor

A

Shares

may

be

subject

to

a

contingent

deferred

sales

charge

(“CDSC”)

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

(b)

A

CDSC

of

1.00%

is

assessed

on

certain

redemptions

of

Investor

C

Shares

made

within

one

year

after

purchase.

The

Fund,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

"Manager") or

its

affiliates,

is

included

in

a

complex

of

non-

index

fixed-income

mutual

funds

and

all

BlackRock-advised

closed-end

funds

referred

to

as

the

BlackRock

Fixed-Income

Complex.

Basis

of

Consolidation:

The

accompanying

consolidated

financial

statements

of

the

Fund

 include

the

account

of

Cayman

Inflation

Protected

Bond

Portfolio,

Ltd.

(the

“Subsidiary”),

which

is

a

wholly-owned

subsidiary

of

the

Fund

 and

primarily

invests

in

commodity-related

instruments

and

other

derivatives

.

The

Subsidiary

enables 

the

Fund

to

hold

these

commodity-related

instruments

and

satisfy

regulated

investment

company

tax

requirements.

The

Fund

 may

invest

up

to

25%

of

its

total

assets

in

the

Subsidiary.

The

net

assets

of

the

Subsidiary

as

of

period

end

were

$6,891,240

,

which

is

0.3%

 of

the

Fund's

 consolidated

net

assets.

Intercompany

accounts

and

transactions,

if

any,

have

been

eliminated.

The

Subsidiary

is

subject

to

the

same

investment

policies

and

restrictions

that

apply

to 

the

Fund

,

except

that

the

Subsidiary

may

invest

without

limitation

in

commodity-related

instruments. 

SIGNIFICANT

ACCOUNTING

POLICIES

The

consolidated

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

consolidated

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

consolidated

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.

Dividend

income

and

capital

gain

distributions,

if

any,

are

recorded

on

the

ex-dividend

date.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

date

at

fair

value.

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.

Foreign

Currency

Translation:

The

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”)

.

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

The

Fund

does

not

isolate

the

effect

of

fluctuations

in

foreign

exchange

rates

from

the

effect

of

fluctuations

in

the

market

prices

of

investments

for

financial

reporting

purposes.

Accordingly,

the

effects

of

changes

in

exchange

rates

on

investments

are

not

segregated

in

the

Consolidated

Statement

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

The

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Segregation

and

Collateralization:

In

cases

where the

Fund

enters

into

certain

investments

(e.g.,

dollar

rolls,

TBA

sale

commitments,

futures

contracts,

forward

foreign

currency

exchange

contracts,

options

written

and

swaps)

or

certain

borrowings

(e.g.,

reverse

repurchase

transactions)

that

would

be

treated

as

“senior

securities”

for

1940

Act

purposes, the

Fund

may

segregate

or

designate

on

its

books

and

record

cash

or

liquid

assets

having

a

market

value

at

least

equal

to

the

amount

of

its

future

obligations

under

such

investments

or

borrowings.

Doing

so

allows

the

investment

or

borrowings

to

be

excluded

from

treatment

as

a

“senior

security.” 

Furthermore,

if

required

by

an

exchange

or

counterparty

agreement,

the

Fund

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-dealer

or

custodian

as

collateral

for

certain

investments

or

obligations.  

Distributions:

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly. 

Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

date

and

made

at

least

annually.

The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP

.

Share

Class

Initial

Sales

Charge

CDSC

Conversion

Privilege

Institutional,

Service

and

Class

K

Shares

.............................

No

No

None

Investor

A

Shares

............................................

Yes

No

(a)

None

Investor

C

Shares

...........................................

No

Yes

(b)

To

Investor

A

Shares

after

approximately

8

years

Notes

to

Consolidated

Financial

Statements

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

32

Net

income

and

realized

gains

from

investments

held

by

the

Subsidiary

are

treated

as

ordinary

income

for

tax

purposes. If

a

net

loss

is

realized

by

the

Subsidiary

in

any

taxable

year,

the

loss

will

generally

not

be

available

to

offset

the

Fund’s

ordinary

income

and/or

capital

gains

for

that

year.  

Deferred

Compensation

Plan:

Under

the

Deferred

Compensation

Plan

(the

“Plan”)

approved

by

the

Board

of

Trustees

of

the

Trust

(the

“Board”)

,

 the

trustees

who

are

not

“interested

persons”

of

the

Fund,

as

defined

in

the

1940

Act

(“Independent

Trustees

”),

may

defer

a

portion

of

their

annual

complex-wide

compensation.

Deferred

amounts

earn

an

approximate

return

as

though

equivalent

dollar

amounts

had

been

invested

in

common

shares

of

certain

funds

in

the

BlackRock

Fixed-Income

Complex

selected

by

the

Independent

Trustees

.

This

has

the

same

economic

effect

for

the

Independent 

Trustees

as

if

the

Independent 

Trustees

had

invested

the

deferred

amounts

directly

in

certain

funds

in

the

BlackRock

Fixed-Income

Complex.  

The

Plan

is

not

funded

and

obligations

thereunder

represent

general

unsecured

claims

against

the

general

assets

of

the

Fund,

as

applicable.

Deferred

compensation

liabilities,

if

any, are

included

in

the

Trustees’

and

Officer’s

fees

payable

in

the

Consolidated

Statement

of

Assets

and

Liabilities

and

will

remain

as

a

liability

of

the

Fund

until

such

amounts

are

distributed

in

accordance

with

the

Plan. 

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.  

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

consolidated

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

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: 

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.

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.

Exchange-traded

funds

(“ETFs”)

and

closed-end

funds traded

on

a

recognized

securities

exchange

are

valued at

that

day’s

official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

ETFs

and

closed-end

funds

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price. 

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day's

published net

asset

value

(“NAV”). 

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

price

on

the

exchange

where

the

contract

is

traded.

Forward

foreign

currency

exchange

contracts

are

valued

at

the

mean

between

the

bid

and

ask

prices

and

are

determined

as

of

the

close

of

trading

on

the

NYSE

based

on

that

day’s

prevailing

forward

exchange

rate

for

the

underlying

currencies.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day's

price will

be

used,

unless

it

is

determined

that

the

prior

day's

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments. 

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

If

events

(e.g.,

a

market

closure,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Global

Valuation

Committee,

or

its

delegate,

in

accordance

with

a

policy

approved

by

the

Board

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Global

Valuation

Committee include

market

approach,

income

approach

and

Notes

to

Consolidated

Financial

Statements

(continued)

33

Notes

to

Consolidated

Financial

Statements

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Global

Valuation

Committee,

or

its

delegate,

seeks

to

determine

the

price

that

the

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Global

Valuation

Committee,

or

its

delegate,

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

The

pricing

of

all

Fair

Valued

Investments

is

subsequently

reported

to

the

Board

or

a

committee

thereof

on

a

quarterly

basis.

For

investments

in

equity

or

debt

issued

by

privately

held

companies

or

funds

(“Private

Company”

or

collectively,

the

“Private

Companies”)

and

other

Fair

Valued

Investments,

the

fair

valuation

approaches

that

are

used

by

the

Global

Valuation

Committee

and

third

party

pricing

services

utilize

one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

Investments

in

series

of

preferred

stock

issued

by

Private

Companies

are

typically

valued

utilizing

market

approach

in

determining

the

enterprise

value

of

the

company.

Such

investments

often

contain

rights

and

preferences

that

differ

from

other

series

of

preferred

and

common

stock

of

the

same

issuer.

Valuation

techniques

such

as

an

option

pricing

model

(“OPM”),

a

probability

weighted

expected

return

model

(“PWERM”)

or

a

hybrid

of

those

techniques

are

used

in

allocating

enterprise

value

of

the

company,

as

deemed

appropriate

under

the

circumstances.

The

use

of

OPM

and

PWERM

techniques

involve

a

determination

of

the

exit

scenarios

of

the

investment

in

order

to

appropriately

allocate

the

enterprise

value

of

the

company

among

the

various

parts

of

its

capital

structure. 

The

Private

Companies

are

not

subject

to

the

public

company

disclosure,

timing,

and

reporting

standards

applicable

to other

investments

held

by the

Fund.

Typically,

the

most

recently

available

information

by

a

Private

Company

is

as

of

a

date

that

is

earlier

than

the

date the

Fund

is

calculating

its

NAV.

This

factor

may

result

in

a

difference

between

the

value

of

the

investment

and

the

price the

Fund

could

receive

upon

the

sale

of

the

investment.

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

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. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Global

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

Private

Companies

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

Standard

Inputs

Generally

Considered

By

Third

Party

Pricing

Services

Market

approach

........................

(

i

)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(

i

)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(

i

)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Consolidated

Financial

Statements

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

34

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

Inflation-Indexed

Bonds:

Inflation-indexed

bonds

(other

than

municipal

inflation-indexed

and

certain

corporate

inflation-indexed

bonds)

are

fixed-income

securities

whose

principal

value

is

periodically

adjusted

according

to

the

rate

of

inflation.

If

the

index

measuring

inflation

rises

or

falls,

the

principal

value

of

inflation-indexed

bonds

(other

than

municipal

inflation-indexed

and

certain

corporate

inflation-indexed

bonds)

will

be

adjusted

upward

or

downward,

and

consequently

the

interest

payable

on

these

securities

(calculated

with

respect

to

a

larger

or

smaller

principal

amount)

will

be

increased

or

reduced,

respectively.

Any

upward

or

downward

adjustment

in

the

principal

amount

of

an

inflation-indexed

bond

will

be

included

as

interest

income

in

the

Consolidated

Statement

of

Operations,

even

though

investors

do

not

receive

their

principal

until

maturity.

Repayment

of

the

original

bond

principal

upon

maturity

(as

adjusted

for

inflation)

is

guaranteed

in

the

case

of

U.S.

Treasury

inflation-indexed

bonds.

For

bonds

that

do

not

provide

a

similar

guarantee,

the

adjusted

principal

value

of

the

bond

repaid

at

maturity

may

be

less

than

the

original

principal.

With

regard

to

municipal

inflation-indexed

bonds

and

certain

corporate

inflation-indexed

bonds,

the

inflation

adjustment

is

typically

reflected

in

the

semi-annual

coupon

payment.

As

a

result,

the

principal

value

of

municipal

inflation-indexed

bonds

and

such

corporate

inflation-indexed

bonds

does

not

adjust

according

to

the

rate

of

inflation.

TBA

Commitments:

TBA

commitments

are

forward

agreements

for

the

purchase

or

sale

of

mortgage-backed

securities

for

a

fixed

price,

with

payment

and

delivery

on

an

agreed

upon

future

settlement

date.

The

specific

securities

to

be

delivered

are

not

identified

at

the

trade

date.

However,

delivered

securities

must

meet

specified

terms,

including

issuer,

rate

and

mortgage

terms.

When

entering

into

TBA

commitments,

a

fund

may

take

possession

of

or

deliver

the

underlying

mortgage-backed

securities

but

can

extend

the

settlement

or

roll

the

transaction.

TBA

commitments

involve

a

risk

of

loss

if

the

value

of

the

security

to

be

purchased

or

sold

declines

or

increases,

respectively,

prior

to

settlement

date.

In

order

to

better

define

contractual

rights

and

to

secure

rights

that

will

help

a

fund

mitigate

its

counterparty

risk,

TBA

commitments

may

be

entered

into

by

a

fund

under

Master

Securities

Forward

Transaction

Agreements

(each,

an

“MSFTA”).

An

MSFTA

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

default

and/or

termination

event.

The

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

the

collateral

currently

pledged

by

a

fund

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

the

obligations

of

a

fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Consolidated

Statement

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

for

TBA

commitments

or

cash

received

as

collateral

for

TBA

commitments,

respectively.

Non-cash

collateral

pledged

by

a

fund,

if

any,

is

noted

in

the

Consolidated

Schedule

of

Investments.

Typically,

a

fund

is

permitted

to

sell,

re-pledge

or

use

the

collateral

it

receives;

however,

the

counterparty

is

not

permitted

to

do

so.

To

the

extent

amounts

due

to

a

fund

are

not

fully

collateralized,

contractually

or

otherwise,

a

fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Mortgage

Dollar

Roll

Transactions:

The

Fund

may

sell

TBA

mortgage-backed

securities

and

simultaneously

contract

to

repurchase

substantially

similar

(i.e.,

same

type,

coupon

and

maturity)

securities

on

a

specific

future

date

at

an

agreed

upon

price.

During

the

period

between

the

sale

and

repurchase,

a

fund

is

not

entitled

to

receive

interest

and

principal

payments

on

the

securities

sold.

Mortgage

dollar

roll

transactions

are

treated

as

purchases

and

sales

and

a

fund

realizes

gains

and

losses

on

these

transactions.

Mortgage

dollar

rolls

involve

the

risk

that

the

market

value

of

the

securities

that

a

fund

is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities.

Reverse

Repurchase

Agreements:

Reverse

repurchase

agreements

are

agreements

with

qualified

third

party

broker

dealers

in

which

a

fund

sells

securities

to

a

bank

or

broker-dealer

and

agrees

to

repurchase

the

same

securities

at

a

mutually

agreed

upon

date

and

price.

A

fund

receives

cash

from

the

sale

to

use

for

other

investment

purposes.

During

the

term

of

the

reverse

repurchase

agreement,

a

fund

continues

to

receive

the

principal

and

interest

payments

on

the

securities

sold.

Certain

agreements

have

no

stated

maturity

and

can

be

terminated

by

either

party

at

any

time.

Interest

on

the

value

of

the

reverse

repurchase

agreements

issued

and

outstanding

is

based

upon

competitive

market

rates

determined

at

the

time

of

issuance.

A

fund

may

utilize

reverse

repurchase

agreements

when

it

is

anticipated

that

the

interest

income

to

be

earned

from

the

investment

of

the

proceeds

of

the

transaction

is

greater

than

the

interest

expense

of

the

transaction.

Reverse

repurchase

agreements

involve

leverage

risk.

If

a

fund

suffers

a

loss

on

its

investment

of

the

transaction

proceeds

from

a

reverse

repurchase

agreement,

a

fund

would

still

be

required

to

pay

the

full

repurchase

price.

Further,

a

fund

remains

subject

to

the

risk

that

the

market

value

of

the

securities

repurchased

declines

below

the

repurchase

price.

In

such

cases,

a

fund

would

be

required

to

return

a

portion

of

the

cash

received

from

the

transaction

or

provide

additional

securities

to

the

counterparty. 

Cash

received

in

exchange

for

securities

delivered

plus

accrued

interest

due

to

the

counterparty

is

recorded

as

a

liability

in

the

Consolidated

Statement

of

Assets

and

Liabilities

at

face

value

including

accrued

interest.

Due

to

the

short-term

nature

of

the

reverse

repurchase

agreements,

face

value

approximates

fair

value.

Interest

payments

made

by

a

fund

to

the

counterparties

are

recorded

as

a

component

of

interest

expense

in

the

Consolidated

Statement

of

Operations.

In

periods

of

increased

demand

for

the

security,

a

fund

may

receive

a

fee

for

the

use

of

the

security

by

the

counterparty,

which

may

result

in

interest

income

to

a

fund.

For

the

year

ended

December

31,

2020,

the

average

amount

of

reverse

repurchase

agreements

outstanding and

the

daily

weighted

average

interest

rate

for

the

Fund

were

$428,451,387

and

0.37%,

respectively.

Reverse

repurchase

transactions are

entered

into

by

a

fund

under

Master

Repurchase

Agreements

(each,

an

“MRA”),

which

permit

a

fund,

under

certain

circumstances,

including

an

event

of

default

(such

as

bankruptcy

or

insolvency),

to

offset

payables

and/or

receivables

under

the

MRA

with

collateral

held

and/or

posted

to

the

counterparty

and

create

one

single

net

payment

due

to

or

from

a

fund.

With

reverse

repurchase

transactions,

typically

a

fund

and

counterparty

under

an

MRA

are

permitted

to

sell,

re-

pledge,

or

use

the

collateral

associated

with

the

transaction.

Bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

such

a

right

of

offset

in

the

event

of

the

MRA

counterparty’s

bankruptcy

or

insolvency.

Pursuant

to

the

terms

of

the

MRA,

a

fund

receives

or

posts

securities

and

cash

as

collateral

Notes

to

Consolidated

Financial

Statements

(continued)

35

Notes

to

Consolidated

Financial

Statements

with

a

market

value

in

excess

of

the

repurchase

price

to

be

paid

or

received

by

a

fund

upon

the

maturity

of

the

transaction.

Upon

a

bankruptcy

or

insolvency

of

the

MRA

counterparty,

a

fund

is

considered

an

unsecured

creditor

with

respect

to

excess

collateral

and,

as

such,

the

return

of

excess

collateral

may

be

delayed.

As

of

period

end,

the

following

table

is

a

summary

of

the

Fund’s

open

reverse

repurchase

agreements by

counterparty

which

are

subject

to

offset

under

an

MRA

on

a

net

basis:

(a)

Collateral

with

a

value

of

$333,506,909

has

been

pledged

in

connection

with

open

reverse

repurchase

agreements.

Excess

of

collateral

pledged

to

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

(b)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

(c)

Non-cash

collateral

with

a

value

of

$5,126,191

has

been

sold

and

is

pending

settlement

as

of

December

31,

2020.

In

the

event

the

counterparty

of

securities

under

an

MRA

files

for

bankruptcy

or

becomes

insolvent,

a

fund’s

use

of

the

proceeds

from

the

agreement

may

be

restricted

while

the

counterparty,

or

its

trustee

or

receiver,

determines

whether

or

not

to

enforce

a

fund’s

obligation

to

repurchase

the

securities.

Derivative

Financial

Instruments

The

Fund

engages

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Fund

and/or

to

manage

its

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Consolidated

Schedule

of

Investments.

These

contracts

may

be

transacted

on

an

exchange or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk).

Futures

contracts

are

exchange-traded agreements

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Fund

is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the Consolidated

Statement

of

Assets

and

Liabilities.

Securities

deposited

as

initial

margin

are

designated

in

the

Consolidated

Schedule

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Fund

agrees

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

rates,

foreign

currency

exchange

rates

or

underlying

assets.

Forward

Foreign

Currency

Exchange

Contracts

:

Forward

foreign

currency

exchange

contracts

are

entered

into

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

A

forward

foreign

currency

exchange

contract

is

an

agreement

between

two

parties

to

buy

and

sell

a

currency

at

a

set

exchange

rate

on

a

specified

date.

These

contracts

help

to

manage

the

overall

exposure

to

the

currencies

in

which

some

of

the

investments

held

by

the

Fund

are

denominated

and

in

some

cases,

may

be

used

to

obtain

exposure

to

a

particular

market.

The

contracts

are

traded

OTC

and

not

on

an

organized

exchange. 

The

contract

is

marked-to-market

daily

and

the

change

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

equal

to

the

difference

between

the

value

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

Non-deliverable

forward

foreign

currency

exchange

contracts

are

settled

with

the

counterparty

in

cash

without

the

delivery

of

foreign

currency.

The

use

of

forward

foreign

currency

exchange

contracts

involves

the

risk

that

the

value

of

a

forward

foreign

currency

exchange

contract

changes

unfavorably

due

to

movements

in

the

value

of

the

referenced

foreign

currencies,

and

such

value

may

exceed

the

amount(s)

reflected

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Cash

amounts

pledged

for

forward

foreign

currency

exchange

contracts

are

considered

restricted

and

are

included

in

cash

pledged

as

collateral

for

OTC

derivatives

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

A

Fund’s

risk

of

loss

from

counterparty

credit

risk

on

OTC

derivatives

is

generally

limited

to

the

aggregate

unrealized

gain

netted

against

any

collateral

held

by

the

Fund.

Options:

The

Fund

purchases

and

writes

call

and

put

options

to

increase

or

decrease

its

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums. 

Counterparty

Reverse

Repurchase

Agreements

Fair

Value

of

Non-cash

Collateral

Pledged

Including

Accrued

Interest

(a)

Cash

Collateral

Pledged/Received

Net

Amount

(b)

Bank

of

America

Securities,

Inc.

......................

$

(169,338,253‌)

$

169,338,253‌

$

—‌

$

—‌

Deutsche

Bank

Securities,

Inc.

.......................

(168,534,310‌)

164,024,300‌

—‌

(4,510,010‌)

(c)

$

(337,872,563‌)

$

333,362,553‌

$

—‌

$

(4,510,010‌)

Notes

to

Consolidated

Financial

Statements

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

36

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Fund

writes

a

call

option,

such

option

is

typically

“covered,”

meaning

that

it

holds

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Fund

writes

a

put

option,

cash

is

segregated in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Swaptions

–

The

Fund

purchases

and

writes

swaptions

primarily

to

preserve

a

return

or

spread

on

a

particular

investment

or

portion

of

the

Fund’s

holdings,

as

a

duration

management

technique

or

to

protect

against

an

increase

in

the

price

of

securities

it

anticipates

purchasing

at

a

later

date.

The

purchaser

and

writer

of

a

swaption

is

buying

or

granting

the

right

to

enter

into

a

previously

agreed

upon

interest

rate

or

credit

default

swap

agreement

(interest

rate

risk

and/or

credit

risk)

at

any

time

before

the

expiration

of

the

option. 

Interest

rate

and

inflation

rate

caps

—

Interest

rate

and

inflation

rate

caps

and

floors

are

entered

into

to

gain

or

reduce

exposure

to

interest

rates

and/or

inflation

rates

(interest

rate

risk

and/or

other

risk).

Caps

are

agreements

whereby

one

party

agrees

to

make

payments

to

the

other,

in

return

for

a

premium,

to

the

extent

that

interest

rate

or

inflation

indexes

exceed

a

specified

rate,

or

“cap.”

Floors

are

agreements

whereby

one

party

agrees

to

make

payments

to

the

other,

in

return

for

a

premium,

to

the

extent

that

interest

rate

or

inflation

indexes

fall

below

a

specified

rate,

or

“floor.”

The

maximum

potential

amount

of

future

payments

that

the

Fund

would

be

required

to

make

under

an

interest

rate

or

inflation

rate

cap

would

be

the

notional

amount

times

the

percentage

increase

in

interest

rates

or

inflation

rates

determined

by

the

difference

between

the

interest

rate

or

inflation

index

current

value

and

the

value

at

the

time

the

cap

was

entered

into.

Foreign

currency

options

–

The

Fund

purchases

and

writes

foreign

currency

options,

foreign

currency

futures

and

options

on

foreign

currency

futures

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

Foreign

currency

options

give

the

purchaser

the

right

to

buy

from

or

sell

to

the

writer

a

foreign

currency

at

any

time

before

the

expiration

of

the

option.

In

purchasing

and

writing

options,

the

Fund

bears

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

it

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Fund

purchasing

or

selling

a

security

when

it

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Fund

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Consolidated

Statement

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Consolidated

Statement

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Consolidated

Statement

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Fund’s

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Fund’s

counterparty

on

the

swap.

The

Fund

is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap,

the

Fund

is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap. Securities

deposited

as

initial

margin

are

designated

in

the

Consolidated

Schedule

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities. Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Fund

agrees

to

receive

from

or

pay

to

the

broker

a

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Payments

received

from

(paid

to)

the

counterparty

are

amortized

over

the

term

of

the

contract

and

recorded

as

realized

gains

(losses)

in

the

Consolidated

Statement

of

Operations,

including

those

at

termination.

Interest

rate

swaps

—

Interest

rate

swaps

are

entered

into

to

gain

or

reduce

exposure

to

interest

rates

or

to

manage

duration,

the

yield

curve

or

interest

rate

(interest

rate

risk).

Interest

rate

swaps

are

agreements

in

which

one

party

pays

a

stream

of

interest

payments,

either

fixed

or

floating,

in

exchange

for

another

party’s

stream

of

interest

payments,

either

fixed

or

floating,

on

the

same

notional

amount

for

a

specified

period

of

time.

In

more

complex

interest

rate

swaps,

the

notional

principal

amount

may

decline

(or

amortize)

over

time.

Forward

swaps

—

The

Fund

enters

into

forward

interest

rate

swaps

and

forward

total

return

swaps.

In

a

forward

swap,

the

Fund

and

the

counterparty

agree

to

make

periodic

net

payments

beginning

on

a

specified

date

or

a

net

payment

at

termination.

Inflation

swaps

—

Inflation

swaps

are

entered

into

to

gain

or

reduce

exposure

to

inflation

(inflation

risk).

In

an

inflation

swap,

one

party

makes

fixed

interest

payments

on

a

notional

principal

amount

in

exchange

for

another

party’s

variable

payments

based

on

an

inflation

index,

such

as

the

Consumer

Price

Index.

Notes

to

Consolidated

Financial

Statements

(continued)

37

Notes

to

Consolidated

Financial

Statements

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risk

in

excess

of

the

amounts

recognized

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, a

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

Fund

and

a

counterparty

that

governs

certain

OTC

derivatives

and

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

a

default

and/or

termination

event.

Under

an

ISDA

Master

Agreement, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Fund

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Consolidated

Statement

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Fund,

if

any,

is

noted

in

the

Consolidated

Schedule

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Fund.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Fund

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

The

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Fund

from the

counterparties

are

not

fully

collateralized, the

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Fund

has

delivered

collateral

to

a

counterparty

and

stands

ready

to

perform

under

the

terms

of

its

agreement

with

such

counterparty, the

Fund bears the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

For

financial

reporting

purposes,

the

Fund

does

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Consolidated

Statement

of

Assets

and

Liabilities.

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

the

following

percentages

of

the

average

daily

value

of

the

Fund’s

net

assets:

The

Manager

provides

investment

management

and

other

services

to

the

Subsidiary.

The

Manager

does

not

receive

separate

compensation

from

the

Subsidiary

for

providing

investment

management

or

administrative

services.

However,

the

Fund

pays

the

Manager

based

on

the

Fund's

net

assets,

which

includes

the

assets

of

the

Subsidiary.

The

Manager

entered

into a

sub-advisory

agreement

with

BlackRock

International

Limited

(“BIL”),

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

and

Distribution

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

and

distribution

fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

the

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing

and

distribution

services to

the

Fund.

The

ongoing

service

and/or

distribution

fee compensates

BRIL

and

each

broker-dealer

for

providing

shareholder

servicing

and/or

distribution related

services

to

shareholders.

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

Billion

.........................................................................................................

0.250

%

$1

Billion

-

$3

Billion

.....................................................................................................

0.240

$3

Billion

-

$5

Billion

....................................................................................................

0.230

$5

Billion

-

$10

Billion

....................................................................................................

0.220

Greater

than

$10

Billion

..................................................................................................

0.210

Service

Fees

Distribution

Fees

Service

..................................................................................................

0.25‌%

—‌%

Investor

A

.................................................................................................

0.25‌

—‌

Investor

C

.................................................................................................

0.25‌

0.75‌

Notes

to

Consolidated

Financial

Statements

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

38

For

the year

ended

December

31,

2020,

the

following

table

shows

the

class

specific

service

and

distribution

fees

borne

directly

by

each

share

class

of

the

Fund:

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

administration

fee,

which

is

shown

as

administration

in

the

Consolidated

Statement

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Consolidated

Statement

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

year

ended

December

31,

2020, 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 December

31,

2020,

the

Fund

paid

the

following

amounts

to

affiliates

of

BlackRock

in

return

for

these

services,

which

are

included

in

transfer

agent

—

class

specific

in

the

Consolidated

Statement

of

Operations:

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Fund.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the year

ended

December

31,

2020,

the

Fund

reimbursed

the

Manager

the

following

amounts

for

costs

incurred

in

running

the

call

center,

which

are

included

in

transfer

agent

—

class

specific

in

the

Consolidated

Statement

of

Operations:

For

the

year ended

December

31,

2020,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

the

Fund:

Other

Fees:

For

the 

year

ended 

December

31,

2020

,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of

the

Fund’s Investor

A

Shares of

$17,313

.

Service

and

Distribution

Fees

Service

.........................................................................................................

$

33,8

9

0‌

Investor

A

........................................................................................................

970,43

6‌

Investor

C

........................................................................................................

482,926‌

$

1,487,252‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

Million

0.0425

%

$500

Million

-

$1

Billion

0.0400

$1

Billion

-

$2

Billion

0.0375

$2

Billion

-

$4

Billion

0.0350

$4

Billion

-

$13

Billion

0.0325

Greater

than

$13

Billion

0.0300

Institutional

.......................................................................................................

$

235,537‌

Service

.........................................................................................................

2,711‌

Investor

A

........................................................................................................

77,628‌

Investor

C

........................................................................................................

9,658‌

Class

K

.........................................................................................................

75,317‌

$

400,851‌

Institutional

.......................................................................................................

$

25,174

Investor

A

........................................................................................................

346

$

25,520

Institutional

....................................................................................................

$

2,409‌

Investor

A

.....................................................................................................

1,509‌

Investor

C

.....................................................................................................

10‌

Class

K

......................................................................................................

1,057‌

$

4,985‌

Institutional

.......................................................................................................

$

2,103,953‌

Service

.........................................................................................................

22,816‌

Investor

A

........................................................................................................

959,371‌

Investor

C

........................................................................................................

66,307‌

Class

K

.........................................................................................................

23,893‌

$

3,176,340‌

Notes

to

Consolidated

Financial

Statements

(continued)

39

Notes

to

Consolidated

Financial

Statements

For

the year

ended

December

31,

2020,

affiliates

received

CDSCs

as

follows:

Expense

Limitations,

Waivers

and

Reimbursements:

The

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees

the

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

April

30,

2021

.

The

contractual

agreement

may

be

terminated upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees

,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitation

s

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver.

Prior

to April

29

,

2020,

this

waiver

was

voluntary. This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Consolidated

Statement

of

Operations.

For

the

year

ended

December

31,

2020,

the

amount

waived

was

$10,478.

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of

the

Fund’s

assets

invested

in

affiliated

equity

and

fixed-income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

April

30,

2021.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Consolidated

Statement

of

Operations.

For

the

year

ended

December

31,

2020,

the

Manager

waived

$36,748

in

investment

advisory

fees

pursuant

to

this

arrangement.

The

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

expenses,

excluding

interest

expense,

dividend

expense,

tax

expense,

acquired

fund

fees

and

expenses,

and

certain

other

fund

expenses,

which

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of the

Fund’s

business

(“expense

limitation”).

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

these

contractual

expense

limitations

through

April

30,

2021,

unless

approved

by

the

Board,

including

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of the

Fund. For

the

year

ended

December

31,

2020,

the

Manager

waived

and/or

reimbursed

investment

advisory

fees

of

$557,317,

which

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Consolidated

Statement

of

Operations.

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in administration

fees

waived

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

—

class

specific,

respectively,

in

the

Consolidated

Statement

of

Operations.

For

the

year ended

December

31,

2020,

class

specific

expense

waivers

and/or

reimbursements were

as

follows: 

Interfund

Lending:

In

accordance

with

an

exemptive

order

(the

“Order”)

from

the

U.S.

Securities

and

Exchange

Commission

(“SEC”),

the

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“

Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by

the

Fund’s

investment

policies

and

restrictions.

The

Fund

is

currently

permitted

to borrow

under

the

Interfund

Lending

Program. 

A

lending

BlackRock

fund

may

lend

in

aggregate

up

to

15%

of

its

net

assets,

but

may

not

lend

more

than

5%

of

its

net

assets

to

any

one

borrowing

fund

through

the

Interfund

Lending

Program.

A

borrowing

BlackRock

fund

may

not

borrow

through

the

Interfund

Lending

Program

or

from

any

other

source

more

than

33

1/3%

of

its

total

assets

(or

any

lower

threshold

provided

for

by

the fund’s

investment

restrictions).

If

a

borrowing

BlackRock

fund’s

total

outstanding

borrowings

exceed

10%

of

its

total

assets,

each

of

its

outstanding

interfund

loans

will

be

subject

to

collateralization

of

at

least

102%

of

the

outstanding

principal

value

of

the

loan.

All

interfund

loans

are

for

temporary

or

emergency

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

Investor

A

$

796‌

Investor

C

4,171‌

Institutional

..........................................................................................................

0.34‌%

Service

............................................................................................................

0.59‌

Investor

A

...........................................................................................................

0.59‌

Investor

C

...........................................................................................................

1.34‌

Class

K

............................................................................................................

0.29‌

Administration

Fees

Waived

Institutional

.......................................................................................................

$

235,537‌

Service

.........................................................................................................

2,711‌

Investor

A

........................................................................................................

77,62

8‌

Investor

C

........................................................................................................

9,658‌

Class

K

.........................................................................................................

75,18

8‌

$

400,722‌

Transfer

Agent

Fees

Waived

and/or

Reimbursed

Institutional

.....................................................................................................

$

1,523,8

2

4‌

Service

.......................................................................................................

16,036‌

Investor

A

......................................................................................................

764,905‌

Investor

C

......................................................................................................

42,123‌

Class

K

.......................................................................................................

23,49

3‌

$

2,370,38

1‌

Notes

to

Consolidated

Financial

Statements

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

40

During the

year

ended

December

31,

2020,

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

Consolidated

Statement

of

Operations. 

Other

Transactions:

The

Fund

may

purchase

securities

from,

or

sell

securities

to,

an

affiliated

fund

provided

the

affiliation

is

due

solely

to

having

a

common

investment

adviser,

common

officers,

or

common

trustees.

For

the

year ended

December

31,

2020,

the

purchase

and

sale

transactions

and

any

net

realized

gains

(losses)

with

an

affiliated

fund

in

compliance

with

Rule

17a-7

under

the

1940

Act

were

as

follows:

PURCHASES

AND

SALES 

For

the

year ended

December

31,

2020,

purchases

and

sales

of

investments,

including

mortgage

dollar

rolls and

excluding

short-term

investments,

were

as

follows:

RULEABOVE

For

the

year ended

December

31,

2020,

purchases

and

sales

related

to

mortgage

dollar

rolls

were

$268,581,555

and

$268,626,855,

respectively. 

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

December

31,

2020,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Fund's

consolidated

financial

statements.

The

tax

character

of

distributions

paid

was

as

follows: 

As

of

period

end,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:  

During

the

year

ended

December

31,

2020,

the

Fund

utilized

$48,040,835

of

its

capital

loss

carryforward.

As

of

December

31,

2020, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

Purchases

...............................................................................................................

$

52,235,003‌

Sales

...................................................................................................................

60,152,686‌

Net

Realized

Gain

..........................................................................................................

161,517‌

U.S.

Government

Securities

Other

Securities

Purchases

Sales

Purchases

Sales

Inflation

Protected

Bond

...............................................

$

5,909,763,785‌

$

6,438,580,196‌

$

2,183,047,081‌

$

2,201,515,608‌

12/31/20

12/31/19

Ordinary

income

............................................................................................

$

30,189,445‌

$

48,068,398‌

Undistributed

ordinary

income

.............................................................................................

$

2,461,901‌

Non-expiring

capital

loss

carryforwards

(a)

......................................................................................

(6,243,676‌)

Net

unrealized

gains

(losses)

(b)

............................................................................................

215,381,814‌

$

211,600,039‌

(a)

Amounts

available

to

offset

future

realized

capital

gains.

(b)

The

difference

between

book-basis

and

tax-basis

net

unrealized

gains

(losses)

was

attributable

primarily

to

the

tax

deferral

of

losses

on

wash

sales

and

straddles,

the

realization

for

tax

purposes

of

unrealized

gains

(losses)

on

certain

futures

and

foreign

c

urrency

exchange

contracts,

amortization

methods

for

premiums

on

fixed

income

securities

and

inflation

rate

caps,

and

the

accounting

for

swap

agreements.

Tax

cost

...........................................................................................................

$

2,306,477,123‌

Gross

unrealized

appreciation

............................................................................................

$

224,501,297‌

Gross

unrealized

depreciation

............................................................................................

(6,557,160‌)

Net

unrealized

appreciation

(depreciation)

....................................................................................

$

217,944,137‌

Notes

to

Consolidated

Financial

Statements

(continued)

41

Notes

to

Consolidated

Financial

Statements

BANK

BORROWINGS 

The

Trust,

on

behalf

of

the

Fund,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”),

is

a

party

to

a

364-day,

$2.25

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Fund

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Fund,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

one-month

LIBOR

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum

or

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed.

The

agreement

expires

in

April

2021

unless

extended

or

renewed.

These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the

year ended

December

31,

2020,

the

Fund

did

not

borrow

under

the

credit

agreement.

 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. 

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.

An

outbreak

of

respiratory

disease

caused

by

a

novel

coronavirus

has

developed

into

a

global

pandemic

and

has

resulted

in

closing

borders,

quarantines,

disruptions

to

supply

chains

and

customer

activity,

as

well

as

general

concern

and

uncertainty.

The

impact

of

this

pandemic,

and

other

global

health

crises

that

may

arise

in

the

future,

could

affect

the

economies

of

many

nations,

individual

companies

and

the

market

in

general

in

ways

that

cannot

necessarily

be

foreseen

at

the

present

time.

This

pandemic

may

result

in

substantial

market

volatility

and

may

adversely

impact

the

prices

and

liquidity

of

a

fund's

investments.

The duration

of

this

pandemic

and

its

effects

cannot

be

determined

with

certainty.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. The

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that the

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. The

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

the

Fund’s

NAV

to

experience

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of the

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which the

Fund

invests. 

The

price the

Fund

could

receive

upon

the

sale

of

any

particular

portfolio

investment

may

differ

from the

Fund’s

valuation

of

the

investment,

particularly

for

securities

that

trade

in

thin

or

volatile

markets

or

that

are

valued

using

a

fair

valuation

technique

or

a

price

provided

by

an

independent

pricing

service.

Changes

to

significant

unobservable

inputs

and

assumptions

(i.e.,

publicly

traded

company

multiples,

growth

rate,

time

to

exit)

due

to

the

lack

of

observable

inputs

may

significantly

impact

the

resulting

fair

value

and

therefore

the

Fund’s

results

of

operations.

As

a

result,

the

price

received

upon

the

sale

of

an

investment

may

be

less

than

the

value

ascribed

by the

Fund,

and the

Fund

could

realize

a

greater

than

expected

loss

or

lesser

than

expected

gain

upon

the

sale

of

the

investment. The

Fund’s

ability

to

value

its

investments

may

also

be

impacted

by

technological

issues

and/or

errors

by

pricing

services

or

other

third

party

service

providers. 

Counterparty

Credit

Risk:

The

Fund

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

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

Consolidated

Statement

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Fund. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

For

OTC

options

purchased,

the

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Fund

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Fund

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Fund,

and

not

the

counterparty,

to

perform.

The

Fund

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

the

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

options

purchased

and

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Fund

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, the

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

Notes

to

Consolidated

Financial

Statements

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

42

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

cleared

swaps

with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Fund. 

Concentration

Risk:

 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 Consolidated

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

Fund

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the

current

period

of

historically

low

rates. 

LIBOR

Transition

Risk:

The

United

Kingdom’s

Financial

Conduct

Authority

announced

a phase

out of

the

London

Interbank

Offered

Rate

(“LIBOR”)

by

the

end

of

2021,

and

it

is

expected

that

LIBOR

will

cease

to

be

published

after

that

time. The

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. 

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

SUBSEQUENT

EVENTS 

Management

has

evaluated

the

impact

of

all

subsequent

events

on

the

Fund

through

the

date

the

consolidated

financial

statements

were

issued

and

has

determined

that

there

were

no

subsequent

events

requiring

adjustment

or

additional

disclosure

in

the

consolidated

financial

statements.

Year

Ended

12/31/20

Year

Ended

12/31/19

Shares

Amount

Shares

Amount

Institutional

Shares

sold

.............................................

45,577,256‌

$

521,942,542‌

31,767,802‌

$

336,314,212‌

Shares

issued

in

reinvestment

of

distributions

........................

1,475,160‌

17,078,556‌

3,034,871‌

32,197,672‌

Shares

redeemed

.........................................

(65,446,819‌)

(732,430,688‌)

(50,855,827‌)

(539,053,286‌)

Net

decrease

..............................................

(18,394,403‌)

$

(193,409,590‌)

(16,053,154‌)

$

(170,541,402‌)

Service

Shares

sold

.............................................

483,860‌

$

5,444,133‌

676,899‌

$

7,019,566‌

Shares

issued

in

reinvestment

of

distributions

........................

17,111‌

194,823‌

40,242‌

420,988‌

Shares

redeemed

.........................................

(589,592‌)

(6,588,641‌)

(1,527,640‌)

(15,971,118‌)

Net

decrease

..............................................

(88,621‌)

$

(949,685‌)

(810,499‌)

$

(8,530,564‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

......................

18,691,395‌

$

209,046,379‌

22,292,720‌

$

231,697,093‌

Shares

issued

in

reinvestment

of

distributions

........................

487,763‌

5,506,659‌

528,672‌

5,472,523‌

Shares

redeemed

.........................................

(13,782,151‌)

(151,820,263‌)

(13,640,484‌)

(141,466,797‌)

Net

increase

...............................................

5,397,007‌

$

62,732,775‌

9,180,908‌

$

95,702,819‌

Investor

C

Shares

sold

.............................................

1,135,870‌

$

12,196,823‌

599,729‌

$

6,016,104‌

Shares

issued

in

reinvestment

of

distributions

........................

45,560‌

490,698‌

140,875‌

1,407,254‌

Shares

redeemed

and

automatic

conversion

of

shares

..................

(4,660,529‌)

(50,043,504‌)

(4,882,582‌)

(48,848,931‌)

Net

decrease

..............................................

(3,479,099‌)

$

(37,355,983‌)

(4,141,978‌)

$

(41,425,573‌)

Class

K

Shares

sold

.............................................

23,864,219‌

$

268,419,769‌

14,063,947‌

$

147,010,945‌

Shares

issued

in

reinvestment

of

distributions

........................

532,352‌

6,079,405‌

704,435‌

7,357,584‌

Shares

redeemed

.........................................

(17,079,737‌)

(188,349,557‌)

(14,115,700‌)

(146,752,519‌)

Net

increase

...............................................

7,316,834‌

$

86,149,617‌

652,682‌

$

7,616,010‌

Total

Net

Decrease

(9,248,282‌)

$

(82,832,866‌)

(11,172,041‌)

$

(117,178,710‌)

Report

of

Independent

Registered

Public

Accounting

Firm

43

Report

of

Independent

Registered

Public

Accounting

Firm

/

Important

Tax

Information

To

the

Shareholders

of

BlackRock

Inflation

Protected

Bond

Portfolio

and

the

Board

of

Trustees

of

BlackRock

Funds

V:

Opinion

on

the

Financial

Statements

and

Financial

Highlights

We

have

audited

the

accompanying

consolidated

statement

of

assets

and

liabilities

of

BlackRock

Inflation

Protected

Bond

Portfolio

of

BlackRock

Funds

V

(the

“Fund”),

including

the

consolidated

schedule

of

investments,

as

of

December

31,

2020,

the

related

consolidated

statements

of

operations

and

cash

flows

for

the

year

then

ended,

the

consolidated

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

consolidated

financial

highlights

for

each

of

the

four

years

in

the

period

then

ended,

the

period

from

October

1,

2016

through

December

31,

2016,

and

the

year

ended

September

30,

2016,

and

the

related

notes.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2020,

and

the

results

of

its

operations

and

its

cash

flows

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

four

years

in

the

period

then

ended,

the

period

from

October

1,

2016

through

December

31,

2016,

and

the

year

ended

September

30,

2016,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

its

internal

control

over

financial

reporting.

As

part

of

our

audits

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2020,

by

correspondence

with

the

custodian

and

brokers;

when

replies

were

not

received

from

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

Deloitte

&

Touche

LLP

Boston,

Massachusetts

February

23,

2021

We

have

served

as

the

auditor

of

one

or

more

BlackRock

investment

companies

since

1992.

Important

Tax

Information

(unaudited)

For

the

fiscal

year

ended

December

31,

2020,

the

Fund

hereby

designates

the

following

maximum

amounts

allowable

as

interest-related

dividends

eligible

for

exemption

from

U.S.

withholding

tax

for

nonresident

aliens

and

foreign

corporations:

The

Fund

hereby

designates

the

following

amount

of

distributions

from

direct

federal

obligation

interest

for

the

fiscal

year

ended

December

31,

2020:

The

law

varies

in

each

state

as

to

whether

and

what

percent

of

ordinary

income

dividends

attribute

to

federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

check

with

their

tax

advisers

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

tax.

Fund

Interest-Related

Dividends

BlackRock

Inflation

Protected

Bond

Portfolio

................................................................................

$

28,059,591‌

Fund

Federal

Obligation

Interest

BlackRock

Inflation

Protected

Bond

Portfolio

................................................................................

$

26,522,203‌

Statement

Regarding

Liquidity

Risk

Management

Program

2020

BlackRock

Annual

Report

to

Shareholders

44

In

compliance

with

Rule

22e-4

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“Liquidity

Rule”),

BlackRock

Funds

V

(the

“Trust”)

has

adopted

and

implemented

a

liquidity

risk

management

program

(the

“Program”)

for

BlackRock

Inflation

Protected

Bond

Portfolio

(the

“Fund”),

each

a

series

of

the

Trust,

which

is

reasonably

designed

to

assess

and

manage

each

Fund’s

liquidity

risk.

The

Board

of

Trustees

(the

“Board”)

of

the

Trust,

on

behalf

of

the

Fund(s),

met

on

November

18-19,

2020

(the

“Meeting”)

to

review

the

Program.

The

Board

previously

appointed

BlackRock

Advisors,

LLC

or

BlackRock

Fund

Advisors

(“BlackRock”),

each

an

investment

adviser

to

certain

Funds,

as

the

program

administrator

for

each

Fund’s

Program,

as

applicable.

BlackRock

also

previously

delegated

oversight

of

the

Program

to

the

40

Act

Liquidity

Risk

Management

Committee

(the

“Committee”).

At

the

Meeting,

the

Committee,

on

behalf

of

BlackRock,

provided

the

Board

with

a

report

that

addressed

the

operation

of

the

Program

and

assessed

its

adequacy

and

effectiveness

of

implementation,

including

the

operation

of

each

Fund’s

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

and

any

material

changes

to

the

Program

(the

“Report”).

The

Report

covered

the

period

from

October

1,

2019

through

September

30,

2020

(the

“Program

Reporting

Period”).

The

Report

described

the

Program’s

liquidity

classification

methodology

for

categorizing

a

Fund’s

investments

(including

derivative

transactions)

into

one

of

four

liquidity

buckets.

It

also

referenced

the

methodology

used

by

BlackRock

to

establish

a

Fund’s

HLIM

and

noted

that

the

Committee

reviews

and

ratifies

the

HLIM

assigned

to

each

Fund

no

less

frequently

than

annually.

The

Report

also

discussed

notable

events

affecting

liquidity

over

the

Program

Reporting

Period,

including

the

impact

of

the

coronavirus

outbreak

on

the

Funds

and

the

overall

market.

The

Report

noted

that

the

Program

complied

with

the

key

factors

for

consideration

under

the

Liquidity

Rule

for

assessing,

managing

and

periodically

reviewing

a

Fund’s

liquidity

risk,

as

follows:

The

Fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

whether

each

Fund’s

strategy

is

appropriate

for

an

open-end

fund

structure

with

a

focus

on

Funds

with

more

significant

and

consistent

holdings

of

less

liquid

and

illiquid

assets.

The

Committee

also

factored

a

Fund’s

concentration

in

an

issuer

into

the

liquidity

classification

methodology

by

taking

issuer

position

sizes

into

account.

Where

a

Fund

participated

in

borrowings

for

investment

purposes

(such

as

tender

option

bonds

and

reverse

repurchase

agreements),

such

borrowings

were

factored

into

the

Program’s

calculation

of

a

Fund’s

liquidity

bucketing.

Derivative

exposure

was

also

considered

in

such

calculation.

Short-term

and

long-term

cash

flow

projections

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

historical

net

redemption

activity

and

used

this

information

as

a

component

to

establish

each

Fund’s

reasonably

anticipated

trading

size

(“RATS”).

Each

Fund

has

adopted

an

in-kind

redemption

policy

which

may

be

utilized

to

meet

larger

redemption

requests.

The

Committee

may

also

take

into

consideration

a

Fund’s

shareholder

ownership

concentration

(which,

depending

on

product

type

and

distribution

channel,

may

or

may

not

be

available),

a

Fund’s

distribution

channels,

and

the

degree

of

certainty

associated

with

a

Fund’s

short-term

and

long-term

cash

flow

projections.

Holdings

of

cash

and

cash

equivalents,

as

well

as

borrowing

arrangements

.

The

Committee

considered

the

terms

of

the

credit

facility

committed

to

the

Funds,

the

financial

health

of

the

institution

providing

the

facility

and

the

fact

that

the

credit

facility

is

shared

among

multiple

Funds

(including

that

a

portion

of

the

aggregate

commitment

amount

is

specifically

designated

for

BlackRock

Floating

Rate

Income

Portfolio,

a

series

of

BlackRock

Funds

V).

The

Committee

also

considered

other

types

of

borrowing

available

to

the

Funds,

such

as

the

ability

to

use

reverse

repurchase

agreements

and

interfund

lending,

as

applicable.

There

were

no

material

changes

to

the

Program

during

the

Program

Reporting

Period.

The

Report

provided

to

the

Board

stated

that

the

Committee

concluded

that

based

on

the

operation

of

the

functions,

as

described

in

the

Report,

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

Trustee

and

Officer

Information

45

Trustee

and

Officer

Information

Independent

Trustees

(a)

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

Richard

E.

Cavanagh

1946

Co-Chair

of

the

Board

and

Trustee

(Since

2019)

Director,

The

Guardian

Life

Insurance

Company

of

America

since

1998;

Board

Chair,

Volunteers

of

America

(a

not-for-profit

organization)

from

2015

to

2018

(board

member

since

2009);

Director,

Arch

Chemicals

(chemical

and

allied

products)

from

1999

to

2011;

Trustee,

Educational

Testing

Service

from

1997

to

2009

and

Chairman

thereof

from

2005

to

2009;

Senior

Advisor,

The

Fremont

Group

since

2008

and

Director

thereof

since

1996;

Faculty

Member/Adjunct

Lecturer,

Harvard

University

since

2007

and

Executive

Dean

from

1987

to

1995;

President

and

Chief

Executive

Officer,

The

Conference

Board,

Inc.

(global

business

research

organization)

from

1995

to

2007.

84

RICs

consisting

of

108

Portfolios

None

Karen

P.

Robards

1950

Co-Chair

of

the

Board

and

Trustee

(Since

2019)

Principal

of

Robards

&

Company,

LLC

(consulting

and

private

investing)

since

1987;

Co-founder

and

Director

of

the

Cooke

Center

for

Learning

and

Development

(a

not-for-profit

organization)

since

1987;

Director

of

Enable

Injections,

LLC

(medical

devices)

since

2019;

Investment

Banker

at

Morgan

Stanley

from

1976

to

1987.

84

RICs

consisting

of

108

Portfolios

Greenhill

&

Co.,

Inc.;

AtriCure,

Inc.

(medical

devices)

from

2000

until

2017

Michael

J.

Castellano

1946

Trustee

(Since

2019)

Chief

Financial

Officer

of

Lazard

Group

LLC

from

2001

to

2011;

Chief

Financial

Officer

of

Lazard

Ltd

from

2004

to

2011;

Director,

Support

Our

Aging

Religious

(non-profit)

from

2009

to

June

2015

and

from

2017

to

September

2020;

Director,

National

Advisory

Board

of

Church

Management

at

Villanova

University

since

2010;

Trustee,

Domestic

Church

Media

Foundation

since

2012;

Director,

CircleBlack

Inc.

(financial

technology

company)

from

2015

to

July

2020.

84

RICs

consisting

of

108

Portfolios

None

Cynthia

L.

Egan

1955

Trustee

(Since

2019)

Advisor,

U.S.

Department

of

the

Treasury

from

2014

to

2015;

President,

Retirement

Plan

Services,

for

T.

Rowe

Price

Group,

Inc.

from

2007

to

2012;

executive

positions

within

Fidelity

Investments

from

1989

to

2007.

84

RICs

consisting

of

108

Portfolios

Unum

(insurance);

The

Hanover

Insurance

Group

(Board

Chair)

(insurance);

Huntsman

Corporation

(chemical

products);

Envestnet

(investment

platform)

from

2013

until

2016

Frank

J.

Fabozzi

(d)

1948

Trustee

(Since

2019)

Editor

of

The

Journal

of

Portfolio

Management

since

1986;

Professor

of

Finance,

EDHEC

Business

School

(France)

since

2011;

Visiting

Professor,

Princeton

University

for

the

2013

to

2014

academic

year

and

Spring

2017

semester;

Professor

in

the

Practice

of

Finance,

Yale

University

School

of

Management

from

1994

to

2011

and

currently

a

Teaching

Fellow

in

Yale's

Executive

Programs;

Board

Member,

BlackRock

Equity-Liquidity

Funds

from

2014

to

2016;

affiliated

professor

Karlsruhe

Institute

of

Technology

from

2008

to

2011;

Visiting

Professor,

Rutgers

University

for

the

Spring

2019

semester;

Visiting

Professor,

New

York

University

for

the

2019

academic

year.

85

RICs

consisting

of

109

Portfolios

None

R.

Glenn

Hubbard

1958

Trustee

(Since

2019)

Dean,

Columbia

Business

School

from

2004

to

2019;

Faculty

member,

Columbia

Business

School

since

1988.

84

RICs

consisting

of

108

Portfolios

ADP

(data

and

information

services);

Metropolitan

Life

Insurance

Company

(insurance);

KKR

Financial

Corporation

(finance)

from

2004

until

2014

W.

Carl

Kester

(d)

1951

Trustee

(Since

2019)

George

Fisher

Baker

Jr.

Professor

of

Business

Administration,

Harvard

Business

School

since

2008;

Deputy

Dean

for

Academic

Affairs

from

2006

to

2010;

Chairman

of

the

Finance

Unit,

from

2005

to

2006;

Senior

Associate

Dean

and

Chairman

of

the

MBA

Program

from

1999

to

2005;

Member

of

the

faculty

of

Harvard

Business

School

since

1981.

85

RICs

consisting

of

109

Portfolios

None

Catherine

A.

Lynch

(d)

1961

Trustee

(Since

2019)

Chief

Executive

Officer,

Chief

Investment

Officer

and

various

other

positions,

National

Railroad

Retirement

Investment

Trust

from

2003

to

2016;

Associate

Vice

President

for

Treasury

Management,

The

George

Washington

University

from

1999

to

2003;

Assistant

Treasurer,

Episcopal

Church

of

America

from

1995

to

1999.

85

RICs

consisting

of

109

Portfolios

None

Trustee

and

Officer

Information

(continued)

2020

BlackRock

Annual

Report

to

Shareholders

46

Interested

Trustees

(a)(e)

(a)

The

address

of

each

Trustee

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Each

Independent

Trustee

holds

office

until

his

or

her

successor

is

duly

elected

and

qualifies

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

charter

or

statute,

or

until

December

31

of

the

year

in

which

he

or

she

turns

75.

Trustees

who

are

“interested

persons,”

as

defined

in

the

Investment

Company

Act

serve

until

their

successor

is

duly

elected

and

qualifies

or

until

their

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

statute,

or

until

December

31

of

the

year

in

which

they

turn

72.

The

Board

may

determine

to

extend

the

terms

of

Independent

Trustees

on

a

case-by-case

basis,

as

appropriate.

(c)

Following

the

combination

of

Merrill

Lynch

Investment

Managers,

L.P.

(“MLIM”)

and

BlackRock,

Inc.

in

September

2006,

the

various

legacy

MLIM

and

legacy

BlackRock

fund

boards

were

realigned

and

consolidated

into

three

new

fund

boards

in

2007.

Certain

Independent

Trustees

first

became

members

of

the

boards

of

other

legacy

MLIM

or

legacy

BlackRock

funds

as

follows:

Richard

E.

Cavanagh,

1994;

Frank

J.

Fabozzi,

1988;

R.

Glenn

Hubbard,

2004;

W.

Carl

Kester,

1995;

and

Karen

P.

Robards,

1998.

Certain

other

Independent

Trustees

became

members

of

the

boards

of

the

closed-end

funds

in

the

Fixed-Income

Complex

as

follows:

Michael

J.

Castellano,

2011;

Cynthia

L.

Egan,

2016;

and

Catherine

A.

Lynch,

2016.

(d)

Dr.

Fabozzi,

Dr.

Kester,

Ms.

Lynch

and

Mr.

Perlowski

are

also

trustees

of

the

BlackRock

Credit

Strategies

Fund.

(e)

Mr.

Fairbairn

and

Mr.

Perlowski

are

both

“interested

persons,”

as

defined

in

the

1940

Act,

of

the

Trust

based

on

their

positions

with

BlackRock,

Inc.

and

its

affiliates.

Mr.

Fairbairn

and

Mr.

Perlowski

are

also

board

members

of

the

BlackRock

Multi-Asset

Complex.

Robert

Fairbairn

1965

Trustee

(Since

2015)

Vice

Chairman

of

BlackRock,

Inc.

since

2019;

Member

of

BlackRock's

Global

Executive

and

Global

Operating

Committees;

Co-Chair

of

BlackRock's

Human

Capital

Committee;

Senior

Managing

Director

of

BlackRock,

Inc.

from

2010

to

2019;

oversaw

BlackRock's

Strategic

Partner

Program

and

Strategic

Product

Management

Group

from

2012

to

2019;

Member

of

the

Board

of

Managers

of

BlackRock

Investments,

LLC

from

2011

to

2018;

Global

Head

of

BlackRock's

Retail

and

iShares

®

businesses

from

2012

to

2016.

117

RICs

consisting

of

267

Portfolios

None

John

M.

Perlowski

(d)

1964

Trustee

(Since

2015);

President

and

Chief

Executive

Officer

(Since

2010)

Managing

Director

of

BlackRock,

Inc.

since

2009;

Head

of

BlackRock

Global

Accounting

and

Product

Services

since

2009;

Advisory

Director

of

Family

Resource

Network

(charitable

foundation)

since

2009.

118

RICs

consisting

of

268

Portfolios

None

Trustee

and

Officer

Information

(continued)

47

Trustee

and

Officer

Information

Officers

Who

Are

Not

Trustees

(a)

(a)

The

address

of

each

Officer

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Officers

of

the

Trust

serve

at

the

pleasure

of

the

Board.

Further

information

about

the

Trust’s

Trustees

and

Officers

is

available

in

the

Trust’s

Statement

of

Additional

Information,

which

can

be

obtained

without

charge

by

calling

(800)

441-7762.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

Principal

Occupation(s)

During

Past

Five

Years

Jennifer

McGovern

1977

Vice

President

(Since

2014)

Managing

Director

of

BlackRock,

Inc.

since

2016;

Director

of

BlackRock,

Inc.

from

2011

to

2015;

Head

of

Americas

Product

Development

and

Governance

for

BlackRock’s

Global

Product

Group

since

2019;

Head

of

Product

Structure

and

Oversight

for

BlackRock's

U.S.

Wealth

Advisory

Group

from

2013

to

2019.

Neal

J.

Andrews

1966

Chief

Financial

Officer

(Since

2007)

Chief

Financial

Officer

of

the

iShares

®

exchange

traded

funds

from

2019

to

2020;

Managing

Director

of

BlackRock,

Inc.

since

2006.

Jay

M.

Fife

1970

Treasurer

(Since

2007)

Managing

Director

of

BlackRock,

Inc.

since

2007.

Charles

Park

1967

Chief

Compliance

Officer

(Since

2014)

Anti-Money

Laundering

Compliance

Officer

for

certain

BlackRock-advised

Funds

from

2014

to

2015;

Chief

Compliance

Officer

of

BlackRock

Advisors,

LLC

and

the

BlackRock-advised

Funds

in

the

BlackRock

Multi-Asset

Complex

and

the

BlackRock

Fixed-Income

Complex

since

2014;

Principal

of

and

Chief

Compliance

Officer

for

iShares

®

Delaware

Trust

Sponsor

LLC

since

2012

and

BlackRock

Fund

Advisors

(“BFA”)

since

2006;

Chief

Compliance

Officer

for

the

BFA-advised

iShares

®

exchange

traded

funds

since

2006;

Chief

Compliance

Officer

for

BlackRock

Asset

Management

International

Inc.

since

2012.

Lisa

Belle

1968

Anti-Money

Laundering

Compliance

Officer

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2019;

Global

Financial

Crime

Head

for

Asset

and

Wealth

Management

of

JP

Morgan

from

2013

to

2019;

Managing

Director

of

RBS

Securities

from

2012

to

2013;

Head

of

Financial

Crimes

for

Barclays

Wealth

Americas

from

2010

to

2012.

Janey

Ahn

1975

Secretary

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Director

of

BlackRock,

Inc.

from

2009

to

2017.

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

2020

BlackRock

Annual

Report

to

Shareholders

48

Regulation

Regarding

Derivatives

On

October

28,

2020,

the

Securities

and

Exchange

Commission

(the

“SEC”)

adopted

new

regulations

governing

the

use

of

derivatives

by

registered

investment

companies

(“Rule

18f-4”).

The

Fund

will

be

required

to

implement

and

comply

with

Rule

18f-4

by

the

third

quarter

of

2022.

Once

implemented,

Rule

18f-4

will

impose

limits

on

the

amount

of

derivatives

a

fund

can

enter

into,

eliminate

the

asset

segregation

framework

currently

used

by

funds

to

comply

with

Section

18

of

the

1940

Act,

treat

derivatives

as

senior

securities

so

that

a

failure

to

comply

with

the

limits

would

result

in

a

statutory

violation

and

require

funds

whose

use

of

derivatives

is

more

than

a

limited

specified

exposure

amount

to

establish

and

maintain

a

comprehensive

derivatives

risk

management

program

and

appoint

a

derivatives

risk

manager.

General

Information

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Funds

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

Funds

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

Fund at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments 

The

Fund

files

its

complete

schedule

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT is

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

the

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/

fundreports

.

Availability

of

Proxy

Voting

Policies

and

Procedures

A

description

of

the

policies

and

procedures

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

is

available

upon

request

and

without

charge

(1)

by

calling

(800)

441-

7762

;

(2)

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

Availability

of

Proxy

Voting

Record

Information

about

how

the

Fund

voted

proxies

relating

to

securities

held

in

the

Fund's

portfolio

during

the

most

recent

12-month

period

ended

June

30

is

available

upon

request

and

without

charge

(1)

at

blackrock.com

;

or

by

calling

(800)

441-

7762

and

(2)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800)

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

Additional

Information

(continued)

49

Additional

Information

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

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may

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to

service

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or

to

provide

you

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information

about

other

BlackRock

products

or

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interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

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its

Clients

to

those

BlackRock

employees

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information.

BlackRock

maintains

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safeguards

that

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non-public

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Clients,

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procedures

relating

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proper

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disposal

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such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Adviser

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10022

Legal

Counsel

Willkie

Farr

&

Gallagher

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

Glossary

of

Terms

Used

in

this

Report

2020

BlackRock

Annual

Report

to

Shareholders

50

Currency

Abbreviations

AUD

Australian

Dollar

CAD

Canadian

Dollar

CLP

Chilean

Peso

CNY

Chinese

Yuan

EUR

Euro

GBP

British

Pound

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

MXN

Mexican

Peso

RUB

New

Russian

Ruble

SEK

Swedish

Krona

USD

United

States

Dollar

ZAR

South

African

Rand

Portfolio

Abbreviations

BA

Canadian

Bankers

Acceptances

ETF

Exchange-Traded

Fund

LIBOR

London

Interbank

Offered

Rate

MSCI

Morgan

Stanley

Capital

International

OTC

Over-the-counter

REPO_CORRA

Canadian

Overnight

Repo

Rate

S&P

Standard

&

Poor's

WTI

West

Texas

Intermediate

Want

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more?

blackrock.com

|

800-441-7762

This

report

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for

current

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It

is

not

authorized

for

use

as

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of

sale

or

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of

an

offer

to

buy

shares

of

the

Fund

unless

preceded

or

accompanied

by

the

Fund’s

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

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Statements

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change.

IPB-12/20-AR

Item 2 –           Code of Ethics –

The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes.  During the period covered by this report, there have been no waivers granted under the code of ethics. The

registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 –           Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi
Catherine A. Lynch

Karen P. Robards

The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions.  Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987.  Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results.  Ms. Robards has over 30 years of experience analyzing financial statements.  She also is a member of the audit committee of one publicly held company and a non-profit organization.

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert.  The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.  The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Inflation Protected Bond Portfolio	$29,784	$29,784	$0	$38	$21,200	$21,200	$0	$0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$1,984,000	$2,050,500

1

The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2

The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3

Non-audit fees of $1,984,000 and $2,050,500 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription.  These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

                        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

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

(f) Not Applicable

(g)

The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Inflation Protected Bond Portfolio	$21,200	$21,238

              Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End	Previous Fiscal Year End
$1,984,000	$2,050,500

              These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

              (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and

the Affiliated Service Providers

that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 – Audit Committee of Listed Registrant – Not Applicable

Item 6 –           Investments

 
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 – Exhibits attached hereto

              (a)(1) Code of Ethics – See Item 2

              (a)(2) Section 302 Certifications are attached

              section302

(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 V  

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds V  

Date: March 5, 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 V  

Date: March 5, 2021

By:     /s/ Trent Walker

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Funds V  

Date: March 5, 2021