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: 811-22061

Name of Fund: BlackRock Funds II

  BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

  BlackRock Strategic Income Opportunities Portfolio

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 12/31/2015

Date of reporting period: 06/30/2015

Item 1 – Report to Stockholders

JUNE 30, 2015        

  SEMI-ANNUAL REPORT (UNAUDITED) BLACKROCK^®

BlackRock Funds II

▶   BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

▶   BlackRock Strategic Income Opportunities Portfolio

Not FDIC Insured ¡ May Lose Value ¡ No Bank Guarantee

Table of Contents

	Page
The Markets in Review	3
Semi-Annual Report:
Fund Summaries	4
The Benefits and Risks of Leveraging	8
About Fund Performance	8
Disclosure of Expenses	9
Derivative Financial Instruments	9
Financial Statements:
Schedules of Investments	10
Statements of Assets and Liabilities	76
Statements of Operations	78
Statements of Changes in Net Assets	79
Financial Highlights	80
Notes to Financial Statements	87
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement	108
Officers and Trustees	113
Additional Information	114

      Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and prospectuses by enrolling in the electronic delivery program. Electronic copies of shareholder reports and prospectuses are also available on BlackRock’s website.   TO ENROLL IN ELECTRONIC DELIVERY:   Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:   Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.   Shareholders Who Hold Accounts Directly with BlackRock:   1.  Access the BlackRock website at blackrock.com 2.  Select “Access Your Account” 3.  Next, select “eDelivery” in the “Related Resources” box and follow the sign-up instructions

2 BLACKROCK FUNDS II JUNE 30, 2015

The Markets in Review

Dear Shareholder,

During the 12-month period ended June 30, 2015, market volatility increased from the remarkably low levels seen in recent years, although it remained below the historical average. In the middle of 2014, geopolitical tensions intensified in Ukraine and the Middle East and oil prices became highly volatile, stoking worries about economic growth outside the United States. The U.S. economy, however, was showing improvement, which made investors concerned that the U.S. Federal Reserve (the “Fed”) would raise short-term rates sooner than previously anticipated. The U.S. dollar appreciated and global credit markets tightened, ultimately putting a strain on investor flows.

In the fourth quarter, U.S. growth picked up considerably while the broader global economy showed more signs of slowing. This, combined with rising global risks, drove investors to the relative stability of U.S. assets. International markets continued to struggle even as the European Central Bank (“ECB”) and the Bank of Japan eased monetary policy. Oil prices plummeted due to a global supply-and-demand imbalance, sparking a selloff in energy-related assets and putting stress on emerging markets. Fixed income investors piled into U.S. Treasuries despite their persistently low yields, which had become attractive as compared to the even lower yields on international sovereign debt.

Equity markets reversed in early 2015, with international markets outperforming the United States as global risks abated. Investors had held high expectations for the U.S. economy, but a harsh winter and west coast port strike brought disappointing first-quarter data and high valuations took their toll on U.S. stocks, while bond yields fell to extreme lows. (Bond prices rise as yields fall.) In contrast, economic reports in Europe and Asia easily beat investors’ very low expectations, and accommodative policies from central banks in those regions helped international equities rebound. Oil prices stabilized, providing some relief for emerging market stocks, although a stronger U.S. dollar continued to be a headwind for the asset class.

U.S. economic data regained momentum in the second quarter, helping U.S. stocks resume an upward path. However, meaningful strength in the labor market underscored the likelihood that the Fed would raise short-term rates before the end of 2015 and bond yields moved swiftly higher. The period ended on a downbeat, but temporary, note as Greece’s long-brewing debt troubles came to an impasse. As the drama unfolded around the tumultuous negotiations between Greece and its creditors, investors feared the possibility of Greece leaving the euro zone and the impact such an event might have on global markets. Most asset classes broadly sold off, especially in Europe, even while macroeconomic and company fundamentals continued to improve.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to move freely as market conditions change over time. 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

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of June 30, 2015
	6-month			12-month
U.S. large cap equities (S&P 500® Index)		1.23	%		7.42	%
U.S. small cap equities (Russell 2000® Index)		4.75			6.49
International equities (MSCI Europe, Australasia, Far East Index)		5.52			(4.22	)
Emerging market equities (MSCI Emerging Markets Index)		2.95			(5.12	)
3-month Treasury bill (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.01			0.02
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		(0.51	)		3.79
U.S. investment-grade bonds (Barclays U.S. Aggregate Bond Index)		(0.10	)		1.86
Tax-exempt municipal bonds (S&P Municipal Bond Index)		0.01			3.00
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		2.53			(0.39	)
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as ofJune 30, 2015 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

      Investment Objective

BlackRock Emerging Markets Flexible Dynamic Bond Portfolio’s (the “Fund”) investment objective is to seek maximum long term total return.

      Portfolio Management Commentary

How did the Fund perform?

• For the six-month period ended June 30, 2015, the Fund’s Institutional Shares returned (0.08)%, while the BlackRock Shares returned (0.02)% and Investor A and Investor C Shares returned (0.22)% and (0.67)%, respectively. For the same period, the Fund’s reference benchmark, a custom blend of 50% J.P. Morgan EMBI Global Diversified Index/50% J.P. Morgan GBI-EM Global Diversified Index, returned (1.63)%.

What factors influenced performance?

• The Fund’s performance is reviewed on an absolute basis due to the nature of its strategy. The Fund has a flexible strategy that is managed within a total return framework. The Fund has the flexibility to invest in fixed income and derivative securities of any maturity and denominated in any currency from issuers located in emerging markets. As such, the Fund is not managed specifically to a benchmark. The blended index return listed above is for reference purposes only.

• The Fund uses derivatives as a part of its investment strategy. Derivatives are used by the Fund as a means to manage risk and/or take outright views on interest rates, credit risk and/or foreign exchange positions. During the period, the Fund’s derivatives positions had a negative impact on returns.

• During the past six months, the Fund’s short duration positioning in U.S. Treasuries made a positive contribution to performance. (Duration is a measure of interest rate sensitivity). This positioning, which was designed to manage the risk of a market reaction to the growing potential for an interest-rate increase by the U.S. Federal Reserve, aided Fund performance as yields indeed rose during the period.

• Long positions in the sovereign bonds of Eastern European countries also helped performance. While the main contribution came from a position in Russia, the Fund’s exposure to Hungary, Romania, Slovenia and Serbia boosted returns as well. The position in Russia was based, in part, on the investment advisor’s view that oil prices would stabilize. The other positions were part of a “European convergence” theme, which reflected the investment advisor’s expectation that yields in the region’s smaller markets will move closer to those of the larger countries over time.

• The Fund’s long position in German bunds, which was designed to benefit from a possible “flight to quality,” detracted from performance. In addition, positions in long-maturity, euro-denominated bonds in Mexico had an adverse impact on Fund returns. As the yields on German bunds surged in the April to June period, these bonds experienced negative performance. An average long position in the Japanese yen versus the U.S. dollar also detracted from Fund performance.

Describe recent portfolio activity.

• Risk reduction was the primary focus of the Fund’s portfolio activity during the period, particularly from the end of April onward. The Fund lowered its exposure to Eastern European countries by reducing positions in Hungary and Romania and closing its position in Slovenia. The Fund also reduced, and then closed, the long position in Russian sovereign debt before moving to a short position via credit default swaps. In addition, the Fund greatly reduced its allocation to Mexican hard-currency bonds.

• The Fund maintained a cash balance to provide increased flexibility and maintain adequate liquidity. The cash position did not have a material impact on performance.

Describe portfolio positioning at period end.

• The majority of the portfolio was in invested in hard-currency bonds. The Fund’s currency positioning favored the U.S. dollar over emerging market currencies, and it was generally short to emerging currencies, albeit with some selective long positions. The Fund was short in the euro and the British pound, while it maintained a long position in the Japanese yen. The Fund’s duration (a measure of its sensitivity to interest rates) stood at 4.6 years as of period end.

• The Fund maintained a defensive positioning by seeking to manage emerging market sovereign risk through the use of derivatives. The Fund also maintained a long position in German bunds and a short position in U.S. Treasuries. Its main bond exposures continued to be in Eastern Europe (despite the reduction); in Mexico and Indonesia, which have benefited from economic reforms; and in Argentina, where bonds issued by the Province of Buenos Aires offered a favorable yield advantage.

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

      Portfolio Information

Portfolio Composition	Percent of Long-Term Investments
Foreign Government Obligations	63%
Foreign Agency Obligations	26
Corporate Bonds	9
U.S. Treasury Obligations	2

Geographic Allocation	Percent of Long-Term Investments
Argentina	11%
Germany	10
Hungary	10
Mexico	9
Russia	6
Turkey	6
Poland	5
Colombia	5
South Africa	5
Kazakhstan	4
Venezuela	4
Indonesia	4
Serbia	3
Dominican Republic	3
Romania	3
Malaysia	3
Gabon	3
Brazil	3
United States	2
Other1	1

¹ Includes holdings within countries that are 1% or less of long-term investments.

   Please refer to the Schedule of Investments for such countries.

4 BLACKROCK FUNDS II JUNE 30, 2015

BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

      Total Return Based on a $10,000 Investment

1   Assuming maximum sales charge, 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.

2   The Fund invests primarily in a global portfolio of fixed income securities and derivatives of any maturity of issuers located in emerging markets that may be denominated in any currency (on a hedged or un-hedged basis). This Fund’s total returns prior to September 3, 2012 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Emerging Market Debt Portfolio.” The Fund’s returns from September 3, 2012 through January 2, 2014 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Emerging Market Local Debt Portfolio.”

³  An unmanaged index that tracks local currency bonds.

⁴  A customized weighted index comprised of the returns of 50% J.P. Morgan GBI-EM Global Diversified Index/50% J.P. Morgan EMBI Global Diversified Index.

⁵  Commencement of operations.

Performance Summary for the Period Ended June 30, 2015
										Average Annual Total Returns6
										1 Year						5 Years						Since Inception7
	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
BlackRock		3.56	%		3.06	%		(0.02	)%		0.05	%		N/A			4.07	%		N/A			4.73	%		N/A
Institutional		3.40			2.92			(0.08	)		(0.17	)		N/A			3.96			N/A			4.62			N/A
Investor A		3.03			2.56			(0.22	)		(0.41	)		(4.39	)%		3.67			2.83	%		4.33			3.76	%
Investor C		2.40			1.81			(0.67	)		(1.17	)		(2.13	)		2.90			2.90			3.55			3.55
J.P. Morgan GBI-EM Global Diversified Index		—			—			(4.88	)		(15.39	)		N/A			0.94			N/A			2.80			N/A
J.P. Morgan EMBI Global Diversified Index		—			—			1.67			0.51			N/A			6.76			N/A			7.05			N/A
50% J.P. Morgan GBI-EM Global Diversified Index/50% J.P. Morgan EMBI Global Diversified Index		—			—			(1.63	)		(7.72	)		N/A			3.89			N/A			4.98			N/A

⁶  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 8 for a detailed description of share classes, including any related sales charges and fees. This Fund’s total returns prior to September 3, 2012 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Emerging Market Debt Portfolio.” The Fund’s returns from September 3, 2012 through January 2, 2014 are the returns of the Fund when it followed different investment strategies under the name “BlackRock Emerging Market Local Debt Portfolio.”

⁷  The Fund commenced operations on February 1, 2008.

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

Past performance is not indicative of future results.

Expense Example
	Actual			Hypothetical9
	Beginning Account Value January 1, 2015	Ending Account Value June 30, 2015	Expenses Paid During the Period8	Beginning Account Value January 1, 2015	Ending Account Value June 30, 2015	Expenses Paid During the Period8	Annualized Expense Ratio
BlackRock	$1,000.00	$999.80	$4.21	$1,000.00	$1,020.58	$4.26	0.85%
Institutional	$1,000.00	$999.20	$4.96	$1,000.00	$1,019.84	$5.01	1.00%
Investor A	$1,000.00	$997.80	$6.19	$1,000.00	$1,018.60	$6.26	1.25%
Investor C	$1,000.00	$993.30	$9.88	$1,000.00	$1,014.88	$9.99	2.00%

⁸  For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

⁹  Hypothetical 5% annual return before expenses is calculated by pro rating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 9 for further information on how expenses were calculated.

BLACKROCK FUNDS II JUNE 30, 2015 5

Fund Summary as of June 30, 2015 BlackRock Strategic Income Opportunities Portfolio

      Investment Objective

BlackRock Strategic Income Opportunities Portfolio’s (the “Fund”) investment objective is to seek total return as is consistent with preservation of capital.

      Portfolio Management Commentary

How did the Fund perform?

• For the six-month period ended June 30, 2015, the Fund’s Institutional Shares returned 0.78%, while the Investor A Shares returned 0.63% and Investor C Shares returned 0.26%. For the same period, the Barclays U.S. Universal Index returned 0.30% and the BofA Merrill Lynch 3-Month Treasury Bill Index returned 0.01%.

What factors influenced performance?

• The Fund’s performance is reviewed on an absolute basis due to the nature of its strategy. The Fund has an unconstrained strategy (i.e., flexibility to invest across all fixed income asset classes) that is managed within a risk-controlled framework. As such, the Fund is not managed specifically to a benchmark. The index returns listed above are for reference purposes only.

• The leading contributors to relative performance during the period were the Fund’s allocations to U.S. securitized markets, exposure to peripheral sovereign bonds and credit positioning within Europe, a long U.S. dollar bias, and allocation to U.S. high yield corporates. In addition, the Fund’s U.S. absolute return and Asia credit strategies aided performance during the period.

• The principal detractors from performance were allocations to U.S. municipal bonds and emerging markets debt, along with the Fund’s positioning along the U.S. yield curve.

• The Fund held derivatives during the period as a part of its investment strategy. Derivatives are used by the Fund as a means to manage risk and/or take outright views on interest rates, credit risk and/or foreign exchange positions in the Fund. During the period, the Fund’s derivatives holdings had a positive impact on performance.

Describe recent portfolio activity.

• Toward the end of March, as economic data continued to be mixed and the bond market experienced bouts of heightened volatility, the Fund’s stance with respect to overall portfolio duration (and corresponding interest rate sensitivity) was moved to neutral, as was the Fund’s positioning along the yield curve. With the rise in global yields starting in April, the Fund’s U.S. investment grade exposure was increased as all-in yields became more attractive. Additionally, as a measure to lower risk and maintain a high degree of liquidity, exposure to U.S. high yield, securitized credit and European credit was reduced. The Fund’s long U.S. dollar exposure was trimmed as well. Lastly, toward period-end, exposure to municipals was modestly reduced on headline risk and supply pressures.

• The Fund maintained a cash balance to provide increased flexibility and maintain adequate liquidity. The cash position did not have a material impact on performance.

Describe Fund positioning at period end.

• The Fund has sought to balance risk in the portfolio between more liquid segments of the market and those that are less liquid where the yield compensated for the risk being taken. While this approach worked as expected, the recent rise in global fixed income yields made certain traditional U.S. fixed income sectors such as investment grade credit and agency mortgage-backed securities more attractive at period end. As a result, the Fund reduced its weighting in less liquid sectors and added back to traditional U.S. fixed income sectors. Additionally, the Fund’s positioning reflected an emphasis on reducing risk and maintaining liquidity.

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

      Portfolio Information

Portfolio Composition	Percent of Long-Term Investments
U.S. Government Sponsored Agency Securities	50%
Corporate Bonds	12
Foreign Government Obligations	9
Asset-Backed Securities	9
Non-Agency Mortgage-Backed Securities	7
U.S. Treasury Obligations	4
Taxable Municipal Bonds	3
Floating Rate Loan Interests	2
Preferred Securities	2
Investment Companies	1
Foreign Agency Obligations	1

Credit Quality Allocation1	Percent of Long-Term Investments
AAA/Aaa2	24%
AA/Aa	5
A	6
BBB/Baa	10
BB/Ba	6
B	5
CCC/Caa	2
CC/Ca	1
N/R	41

¹ For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either Standard & Poor’s (“S&P”) 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 N/R are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

² The investment advisor evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar invest ments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment advisor 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.

6 BLACKROCK FUNDS II JUNE 30, 2015

BlackRock Strategic Income Opportunities Portfolio

      Total Return Based on a $10,000 Investment

¹  Assuming maximum sales charge, 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.

²  Under normal market conditions, the Fund will invest in a combination of other fixed income securities, including, but not limited to: high yield securities, international securities, emerging markets debt and mortgages. Depending on market conditions, the Fund may invest in other market sectors.

³  An unmanaged, market value weighted index of fixed income securities issued in U.S. dollars, including U.S. government and investment grade debt, non-investment grade debt, asset-backed and mortgage-backed securities, Eurobonds, 144A securities and emerging market debt with maturities of at least one year.

⁴  An unmanaged index that tracks 3-month U.S. Treasury securities.

⁵  Commencement of operations.

Performance Summary for the Period Ended June 30, 2015
				Average Annual Total Returns6
				1 Year		5 Years		Since Inception7
	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	2.98%	2.97%	0.78%	1.31%	N/A	4.60%	N/A	4.88%	N/A
Investor A	2.53	2.47	0.63	1.01	(3.04)%	4.32	3.47%	4.61	4.04%
Investor C	1.91	1.90	0.26	0.25	(0.73)	3.54	3.54	3.82	3.82
Barclays U.S. Universal Index	—	—	0.30	1.61	N/A	3.81	N/A	4.51	N/A
BofA Merrill Lynch 3-Month U.S. Treasury Bill Index	—	—	0.01	0.02	N/A	0.08	N/A	0.30	N/A

⁶  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 8 for a detailed description of share classes, including any related sales charges and fees.

⁷  The Fund commenced operations on February 5, 2008.

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

Past performance is not indicative of future results.

Expense Example
	Actual				Hypothetical10
			Including Interest Expense	Excluding Interest Expense		Including Interest  Expense		Excluding Interest  Expense
	Beginning Account Value January 1, 2015	Ending Account Value June 30, 2015	Expenses Paid During the Period8	Expenses Paid During the Period9	Beginning Account Value January 1, 2015	Ending Account Value June 30, 2015	Expenses Paid During the Period8	Ending Account Value June 30, 2015	Expenses Paid During the Period9
Institutional	$1,000.00	$1,007.80	$3.88	$2.89	$1,000.00	$1,020.93	$3.91	$1,021.92	$2.91
Investor A	$1,000.00	$1,006.30	$5.47	$4.48	$1,000.00	$1,019.34	$5.51	$1,020.33	$4.51
Investor C	$1,000.00	$1,002.60	$9.19	$8.19	$1,000.00	$1,015.62	$9.25	$1,016.61	$8.25

⁸  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.78% for Institutional, 1.10% for Investor A and 1.85% for Investor C), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

⁹  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.58% for Institutional, 0.90% for Investor A and 1.65% for Investor C), multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period shown).

¹⁰  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

See “Disclosure of Expenses” on page 9 for further information on how expenses were calculated.

BLACKROCK FUNDS II JUNE 30, 2015 7

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance yield and net asset value (“NAV”). However, these objectives cannot be achieved in all interest rate environments.

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

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

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

The use of leverage also generally causes greater changes in each Fund’s NAV and distribution rates than it would in a comparable fund that does not use leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by the Funds’ shareholders and may reduce income.

About Fund Performance

• BlackRock and Institutional Shares (BlackRock Shares available only in BlackRock Emerging Markets Flexible Dynamic Bond Portfolio) are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only 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.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.

Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at NAV on the ex-dividend/ payable date. 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 Funds’ investment advisor/ administrator, has contractually agreed to waive and/or reimburse a portion of the Funds’ expenses. Without such waiver and/or reimbursement, the Funds’ performance would have been lower. The Manager/ Administrator is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 5 of the Notes to Financial Statements for additional information on waivers and/or reimbursements. The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

8 BLACKROCK FUNDS II JUNE 30, 2015

Disclosure of Expenses

Shareholders of the Funds may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, administration fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses and other Fund expenses. The expense examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on January 1, 2015 and held through June 30, 2015) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. Derivative financial instruments are used to obtain exposure to a security, index and/or market without owning or taking physical custody of securities 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. Derivative financial instruments also 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 derivative financial instrument. The Funds’ ability to use a derivative

financial instrument successfully depends on the investment advisor’s ability to predict pertinent market movements accurately, which cannot be assured. The use of derivative financial instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments are discussed in detail in the Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 9

Schedule of Investments June 30, 2015 (Unaudited)	BlackRock Emerging Markets Flexible Dynamic Bond Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par   (000)		Value
Brazil — 1.4%
Vale Overseas Ltd., 6.88%, 11/21/36	USD		800	$	773,448
Colombia — 2.3%
Bancolombia SA, 5.13%, 9/11/22			1,300		1,297,400
Turkey — 4.9%
Akbank TAS, 5.13%, 3/31/25 (a)			1,400		1,338,568
Turkiye Garanti Bankasi AS, 5.25%, 9/13/22 (a)			1,400		1,415,680
					2,754,248
Total Corporate Bonds — 8.6%					4,825,096
Foreign Agency Obligations
Brazil — 1.0%
Petrobras Global Finance BV, 6.85%, 6/05/2115			700		574,252
Colombia — 2.4%
Ecopetrol SA, 5.38%, 6/26/26			1,400		1,386,000
Kazakhstan — 4.0%
KazMunayGas National Co. JSC, 5.75%, 4/30/43			2,692		2,246,245
Mexico — 3.7%
Petroleos Mexicanos, 2.75%, 4/21/27	EUR		2,054		2,080,952
Russia — 5.2%
ALROSA Finance SA, 7.75%, 11/03/20	USD		1,400		1,463,000
Gazprom OAO Via Gaz Capital SA, 3.85%, 2/06/20			1,600		1,473,824
					2,936,824
South Africa — 3.3%
Eskom Holdings SOC Ltd., 7.13%, 2/11/25 (a)			1,300		1,315,314
Transnet SOC Ltd., 4.00%, 7/26/22 (a)			550		528,220
					1,843,534

Foreign Agency Obligations		Par   (000)		Value
Venezuela — 3.8%
Petroleos de Venezuela SA:
12.75%, 2/17/22	USD		479	$	236,238
9.75%, 5/17/35			4,778		1,932,834
					2,169,072
Total Foreign Agency Obligations — 23.4%					13,236,879
Foreign Government Obligations
Angola — 1.1%
Republic of Angola, 7.00%, 8/16/19			600		598,950
Argentina — 9.4%
Province de Buenos Aires:
11.75%, 10/05/15			4,900		4,902,450
9.63%, 4/18/28			447		432,473
					5,334,923
Dominican Republic — 3.1%
Dominican Republic, 7.45%, 4/30/44 (a)			1,583		1,729,426
Gabon — 2.4%
Gabonese Republic, 6.95%, 6/16/25 (a)			1,400		1,389,500
Germany — 8.9%
Bundesrepublik Deutschland, 2.50%, 8/15/46	EUR		3,700		5,051,664
Hungary — 8.6%
Republic of Hungary:
6.75%, 11/24/17	HUF		341,360		1,351,681
5.50%, 6/24/25			349,000		1,389,334
7.63%, 3/29/41	USD		1,584		2,099,022
					4,840,037
Indonesia — 3.4%
Republic of Indonesia:
5.88%, 1/15/24			516		570,180
5.25%, 1/17/42			1,427		1,371,704
					1,941,884

Portfolio Abbreviations
ABS	Asset-Backed Security	COP	Colombian Peso	NZD	New Zealand Dollar
AGM	Assurance Guaranty	ETF	Exchange-Traded Fund	OTC	Over-the-counter
	Municipal Corp.	EUR	Euro	PIK	Payment-in-kind
AKA	Also Known As	EURIBOR	Euro Interbank Offered Rate	PLN	Polish Zloty
AMBAC	AMBAC Assurance Corp.	FKA	Formerly Known As	RB	Revenue Bonds
AUD	Australian Dollar	GBP	British Pound	REMIC	Real Estate Mortgage Investment Conduit
BRL	Brazilian Real	GO	General Obligation Bonds	RUB	Russian Ruble
BUBOR	Budapest Interbank Offered Rate	HKD	Hong Kong Dollar	SEK	Swedish Krona
		HUF	Hungarian Forint	SGD	Singapore Dollar
BZDIOVER	Overnight Brazil CETIP - Interbank Rate	IDR	Indonesian Rupiah	SPDR	Standard & Poor’s Depositary Receipts
		INR	Indian Rupee
CAD	Canadian Dollar	JPY	Japanese Yen	TBA	To-be-announced
CDO	Collateralized Debt Obligation	KRW	South Korean Won	THB	Thai Baht
CHF	Swiss Franc	LIBOR	London Interbank Offered Rate	TRY	Turkish Lira
CLO	Collateralized Loan Obligation	MXIBTIIE	Mexico Interbank TIIE 28 Day	USD	US Dollar
CLP	Chilean Peso	MXN	Mexican Peso	WIBOR	Warsaw Interbank Offered Rate
CNH	Chinese Yuan Offshore	MYR	Malaysian Ringgit	ZAR	South African Rand
CNY	Chinese Yuan	NOK	Norwegian Krone

See Notes to Financial Statements.

10 BLACKROCK FUNDS II JUNE 30, 2015

Schedule of Investments (continued)	BlackRock Emerging Markets Flexible Dynamic Bond Portfolio
	(Percentages shown are based on Net Assets)

Foreign Government Obligations		Par  (000)		Value
Malaysia — 3.0%
Federation of Malaysia, 3.17%, 7/15/16	MYR		6,300	$	1,672,068
Mexico — 4.2%
United Mexican States:
8.00%, 12/17/15	MXN		17,170		1,116,153
4.00%, 3/15/2115	EUR		1,320		1,275,911
					2,392,064
Panama — 0.0%
Republic of Panama, 9.38%, 4/01/29	USD		1		1,480
Poland — 4.8%
Republic of Poland:
0.00%, 7/25/16 (b)	PLN		5,146		1,342,871
3.25%, 7/25/25			5,100		1,352,827
					2,695,698
Romania — 3.0%
Republic of Romania, 6.13%, 1/22/44 (a)	USD		1,520		1,705,440
Serbia — 3.1%
Republic of Serbia, 5.88%, 12/03/18			1,648		1,732,460
South Africa — 1.0%
Republic of South Africa, 5.88%, 9/16/25			500		553,922
Total Foreign Government Obligations — 56.0%					31,639,516

U.S. Treasury Obligations — 1.5%		Par  (000)		Value
U.S. Treasury Notes, 0.25%, 10/31/15	USD		836	$	836,492
Total Long-Term Investments (Cost — $50,656,571) — 89.5%					50,537,983
Short-Term Securities		Shares
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.07% (c)(d)			3,906,773		3,906,773
Total Short-Term Securities (Cost — $3,906,773) — 6.9%					3,906,773
Options Purchased
(Cost — $170,677) — 0.0%					7,161
Total Investments Before Options Written 96.4%					54,451,917
Options Written
(Premiums Received — $ 193,375) — (0.4)%					(214,027	)
Total Investments Net of Options Written — 96.0%					54,237,890
Other Assets Less Liabilities — 4.0%					2,274,923
Net Assets — 100.0%				$	56,512,813

      Notes to Schedule of Investments

(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) Zero-coupon bond.

(c) During the six months ended June 30, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at December 31, 2014		Net Activity		Shares Held at June 30, 2015		Income
BlackRock Liquidity Funds, TempFund, Institutional Class		2,436,447		1,470,326		3,906,773		$2,138

(d) Represents the current yield as of report date.

• As of June 30, 2015, financial futures contracts outstanding were as follows:

Contracts Short

Issue

Exchange

Expiration

Notional Value

Unrealized Depreciation

(23

)

U.S. Ultra Treasury Bonds

Chicago Board of Trade

September 2015

USD

3,543,438

$(1,917

)

• As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows:

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
BRL	13,300,000		USD	4,253,278	JPMorgan Chase Bank N.A.		7/27/15		$(18,478	)
HUF	437,942,080		USD	1,576,238	Citibank N.A.		7/27/15		(29,394	)
HUF	781,000,000		USD	2,823,572	Société Générale		7/27/15		(65,021	)
JPY	146,620,761		USD	1,200,922	Deutsche Bank AG		7/27/15		(2,483	)
JPY	263,768,270		USD	2,152,332	Deutsche Bank AG		7/27/15		3,639
JPY	348,415,530		USD	2,844,682	HSBC Bank PLC		7/27/15		3,173
MXN	30,084,099		USD	1,943,719	Goldman Sachs International		7/27/15		(33,572	)
MXN	22,001,712		USD	1,413,622	JPMorgan Chase Bank N.A.		7/27/15		(16,655	)
PLN	10,490,000		USD	2,858,856	Barclays Bank PLC		7/27/15		(71,074	)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 11

Schedule of Investments (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows: (concluded)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
PLN	5,384,035	USD	1,444,409	BNP Paribas S.A.		7/27/15		$(13,569	)
PLN	6,441,762	USD	1,723,569	BNP Paribas S.A.		7/27/15		(11,631	)
PLN	4,400,000	USD	1,196,462	Citibank N.A.		7/27/15		(27,135	)
PLN	6,143,332	USD	1,678,029	Royal Bank of Scotland PLC		7/27/15		(45,401	)
PLN	10,297,441	USD	2,755,961	Société Générale		7/27/15		(19,353	)
TRY	423,846	USD	155,972	Barclays Bank PLC		7/27/15		826
TRY	3,476,154	USD	1,279,230	Deutsche Bank AG		7/27/15		6,747
USD	1,414,418	BRL	4,481,584	Deutsche Bank AG		7/27/15		(12,546	)
USD	1,421,527	BRL	4,483,496	Deutsche Bank AG		7/27/15		(6,045	)
USD	2,832,161	BRL	8,816,516	JPMorgan Chase Bank N.A.		7/27/15		24,929
USD	2,840,750	EUR	2,500,000	Barclays Bank PLC		7/27/15		52,588
USD	1,491,155	EUR	1,330,453	BNP Paribas S.A.		7/27/15		7,347
USD	2,835,904	EUR	2,538,637	Citibank N.A.		7/27/15		4,651
USD	4,540,049	EUR	4,002,300	Deutsche Bank AG		7/27/15		76,424
USD	2,261,441	EUR	2,033,771	Goldman Sachs International		7/27/15		(6,753	)
USD	1,443,338	GBP	910,490	Citibank N.A.		7/27/15		13,012
USD	4,463,827	HUF	1,226,949,690	Goldman Sachs International		7/27/15		130,148
USD	2,833,813	JPY	351,083,697	Deutsche Bank AG		7/27/15		(35,851	)
USD	4,419,572	JPY	543,850,000	Standard Chartered Bank		7/27/15		(25,712	)
USD	4,421,778	JPY	543,852,190	State Street Bank and Trust Co.		7/27/15		(23,523	)
USD	2,955,717	KRW	3,252,766,980	Barclays Bank PLC		7/27/15		41,496
USD	1,957,116	MXN	30,047,600	Bank of America N.A.		7/27/15		49,287
USD	1,121,389	MXN	17,598,970	Citibank N.A.		7/27/15		3,968
USD	1,139,703	MYR	4,262,260	Morgan Stanley & Co. International PLC		7/27/15		12,609
USD	10,276,594	PLN	37,858,870	Royal Bank of Scotland PLC		7/27/15		215,368
USD	2,989,748	THB	100,787,410	Goldman Sachs International		7/27/15		8,629
USD	1,220,353	TRY	3,309,061	Barclays Bank PLC		7/27/15		(3,809	)
USD	1,451,460	TRY	3,900,000	Deutsche Bank AG		7/27/15		8,684
USD	189,851	TRY	514,755	JPMorgan Chase Bank N.A.		7/27/15		(578	)
USD	2,329,240	ZAR	28,466,110	Citibank N.A.		7/27/15		971
USD	201,550	ZAR	2,480,412	Deutsche Bank AG		7/27/15		(1,325	)
USD	1,328,566	ZAR	16,195,185	Deutsche Bank AG		7/27/15		3,947
USD	1,418,286	ZAR	17,265,504	Deutsche Bank AG		7/27/15		6,125
USD	99,449	ZAR	1,211,943	UBS AG		7/27/15		323
USD	1,228,940	ZAR	15,124,375	UBS AG		7/27/15		(8,097	)
ZAR	28,522,179	USD	2,334,351	Deutsche Bank AG		7/27/15		(1,496	)
Total								$195,390

See Notes to Financial Statements.

12 BLACKROCK FUNDS II JUNE 30, 2015

Schedule of Investments (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

• As of June 30, 2015, OTC options purchased were as follows:

Description	Counterparty	Put/ Call		Strike Price			Expiration Date	Notional Amount (000)			Value
USD Currency	Bank of America N.A.		Put		JPY	116.00	8/04/15		USD	11,900	$7,159

• As of June 30, 2015, OTC barrier options purchased were as follows:

Description	Counterparty		Barrier Price			Expiration Date	Notional Amount (000)			Value
USD Currency		HSBC Bank PLC		JPY	120.00	7/02/15		USD	23,500	$2

• As of June 30, 2015, OTC options written were as follows:

Description	Counterparty	Put/ Call		Strike Price			Expiration Date	Notional Amount (000)			Value
USD Currency	Bank of America N.A.		Call		JPY	121.00	8/04/15		USD	11,900	$(214,027)

• As of June 30, 2015, centrally cleared interest rate swaps outstanding were as follows:

Fixed Rate	Floating Rate	Clearinghouse	Expiration Date	Notional Amount (000)			Unrealized Depreciation
1.85%1	3-month LIBOR	Chicago Mercantile	6/11/20		USD	24,100		$(135,666	)

¹ Fund pays the fixed rate and receives the floating rate.

• As of June 30, 2015, OTC credit default swaps – buy protection outstanding were as follows:

Issuer/Index	Pay Fixed Rate			Counterparty	Expiration Date	Notional Amount (000)			Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%	BNP Paribas S.A.	6/20/16		USD	3,000	$	(14,083	)	$	(14,565	)	$	482
Russian Federation		1.00	%	Citibank N.A.	6/20/20		USD	3,590		365,739			390,795			(25,056	)
CDX.EM Series 23 Version 1		1.00	%	Goldman Sachs Bank USA	6/20/20		USD	14,000		1,316,941			1,227,613			89,328
CDX.EM Series 23 Version 1		1.00	%	JPMorgan Chase Bank N.A.	6/20/20		USD	5,993		562,893			555,166			7,727
CDX.EM Series 23 Version 1		1.00	%	JPMorgan Chase Bank N.A.	6/20/20		USD	4,411		414,299			408,612			5,687
CDX.EM Series 23 Version 1		1.00	%	JPMorgan Chase Bank N.A.	6/20/20		USD	2,996		281,447			278,482			2,965
Federative Republic of Brazil		1.00	%	Citibank N.A.	9/20/20		USD	1,500		115,908			114,355			1,553
Republic of South Africa		1.00	%	Citibank N.A.	9/20/20		USD	1,500		78,721			76,993			1,728
Republic of Turkey		1.00	%	Citibank N.A.	9/20/20		USD	1,500		88,105			85,873			2,232
Republic of Colombia		1.00	%	JPMorgan Chase Bank N.A.	9/20/20		USD	1,500		51,925			50,087			1,838
Total									$	3,261,895		$	3,173,411		$	88,484

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

• Level 1 — unadjusted quoted prices 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)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 13

Schedule of Investments (concluded) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

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

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of June 30, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1				Level 2				Level 3		Total
Assets:
Investments:
Long-Term Investments:
Corporate Bonds			—			$	4,825,096			—		$	4,825,096
Foreign Agency Obligations			—				13,236,879			—			13,236,879
Foreign Government Obligations			—				31,639,516			—			31,639,516
U.S. Treasury Obligations			—				836,492			—			836,492
Short-Term Securities		$	3,906,773				—			—			3,906,773
Options Purchased:
Foreign Currency Exchange Contracts			—				7,161			—			7,161
Total		$	3,906,773			$	50,545,144			—		$	54,451,917
	Level 1				Level 2				Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts			—			$	113,540			—		$	113,540
Foreign currency exchange contracts			—				674,891			—			674,891
Liabilities:
Credit contracts			—				(25,056	)		—			(25,056	)
Foreign currency exchange contracts			—				(693,528	)		—			(693,528	)
Interest rate contracts		$	(1,917	)			(135,666	)		—			(137,583	)
Total		$	(1,917	)		$	(65,819	)		—		$	(67,736	)
1     Derivative financial instruments are swaps, financial futures contracts, forward foreign currency exchange contracts and options written. Swaps, financial 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 for financial statement purposes. As of June 30, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
	Level 1				Level 2				Level 3		Total
Assets:
Cash		$	205,625				—			—		$	205,625
Cash pledged for financial futures contracts			166,570				—			—			166,570
Cash pledged for centrally cleared swaps			347,820				—			—			347,820
Liabilities:
Cash received as collateral for OTC derivatives			—			$	(4,170,000	)		—			(4,170,000	)
Total		$	720,015			$	(4,170,000	)		—		$	(3,449,985	)

There were no transfers between levels during the period ended June 30, 2015.

See Notes to Financial Statements.

14 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments June 30, 2015 (Unaudited)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Cayman Islands — 4.3%
ACAS CLO Ltd.:
Series 2013-1A, Class C, 3.03%, 4/20/25 (a)(b)	USD		2,000	$	1,975,000
Series 2014-1A, Class C, 3.18%, 7/18/26 (a)(b)			4,000		3,961,855
Series 2014-2A, Class C, 3.47%, 1/15/27 (a)(b)			1,660		1,662,486
Series 2015-1A, Class A1, 1.74%, 4/18/27 (a)(b)			1,750		1,748,255
Series 2015-1A, Class D, 3.90%, 4/18/27 (a)(b)			1,750		1,669,937
Adirondack Park CLO Ltd., Series 2013-1A, Class D, 3.93%, 4/15/24 (a)(b)			1,000		988,872
ALM Loan Funding, Series 2012-7A, Class C, 4.78%, 10/19/24 (a)(b)			10,945		10,945,185
ALM V Ltd., Series 2012-5A, Class D, 5.78%, 2/13/23 (a)(b)			1,205		1,204,928
ALM VI Ltd.:
Series 2012-6A, Class A2R, 2.23%, 7/15/26 (a)(b)			1,190		1,190,000
Series 2012-6A, Class CR, 4.03%, 7/15/26 (a)(b)			6,115		6,071,859
Series 2012-6A, Class DR, 5.93%, 7/15/26 (a)(b)			3,225		3,128,698
ALM VII Ltd.:
Series 2012-7A, Class A1, 1.70%, 10/19/24 (a)(b)			10,750		10,722,279
Series 2012-7A, Class D, 5.28%, 10/19/24 (a)(b)			4,720		4,578,372
ALM VII R Ltd.:
Series 2013-7RA, Class A2, 2.13%, 4/24/24 (a)(b)			6,619		6,618,982
Series 2013-7RA, Class D, 5.28%, 4/24/24 (a)(b)			6,130		5,992,892
ALM VII R-2 Ltd.:
Series 2013-7R2A, Class A2, 2.13%, 4/24/24 (a)(b)			9,363		9,327,782
Series 2013-7R2A, Class C, 3.73%, 4/24/24 (a)(b)			625		619,583
ALM VIII Ltd.:
Series 2013-8A, Class B, 3.03%, 1/20/26 (a)(b)			3,995		3,972,392
Series 2013-8A, Class C, 3.48%, 1/20/26 (a)(b)			6,775		6,520,097
ALM XI Ltd., Series 2014-11A, Class A2A, 2.27%, 10/17/26 (a)(b)			9,440		9,394,699
ALM XII Ltd.:
Series 2015-12A, Class B, 3.53%, 4/16/27 (a)(b)			2,067		2,070,101
Series 2015-12A, Class C1, 4.03%, 4/16/27 (a)(b)			1,240		1,210,550
ALM XIV Ltd.:
Series 2014-14A, Class A1, 1.71%, 7/28/26 (a)(b)			1,825		1,815,524
Series 2014-14A, Class A2, 2.38%, 7/28/26 (a)(b)			8,253		8,259,921
Series 2014-14A, Class B, 3.23%, 7/28/26 (a)(b)			3,600		3,601,458
Series 2014-14A, Class C, 3.73%, 7/28/26 (a)(b)			7,890		7,576,837
Series 2014-14A, Class D, 5.13%, 7/28/26 (a)(b)			3,630		3,323,104
AMAC CDO Funding I, Series 2006-1A, Class C, 0.77%, 11/23/50 (a)(b)			6,111		5,539,988
AMMC CDO:
Series 2015-16A, Class C, 3.37%, 4/14/27 (a)(b)			3,040		3,025,479

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Series 2015-16A, Class D, 4.02%, 4/14/27 (a)(b)	USD		1,220	$	1,186,460
AMMC CLO 15 Ltd.:
Series 2014-15A, Class C1, 3.74%, 12/09/26 (a)(b)			1,870		1,874,675
Series 2014-15A, Class D, 4.48%, 12/09/26 (a)(b)			2,620		2,606,900
AMMC CLO IX Ltd., Series 2011-9A, Class D, 4.78%, 1/15/22 (a)(b)			4,120		4,119,990
Anchorage Capital CLO 3 Ltd., Series 2014-3A, Class B, 3.28%, 4/28/26 (a)(b)			2,375		2,354,440
Anchorage Capital CLO 6 Ltd.:
Series 2015-6A, Class A1, 1.82%, 4/15/27 (a)(b)			8,910		8,914,455
Series 2015-6A, Class B, 2.33%, 4/15/27 (a)(b)			3,070		3,041,449
Series 2015-6A, Class D, 3.68%, 4/15/27 (a)(b)			2,660		2,521,148
Series 2015-6A, Class E1, 5.18%, 4/15/27 (a)(b)			2,250		2,022,975
Anchorage Capital CLO Ltd., Series 2014-3A, Class C, 3.78%, 4/28/26 (a)(b)			3,201		3,043,371
Apidos CDO:
Series 2012-9AR, Class CR, 3.18%, 7/15/23 (a)(b)			12,295		12,295,000
Series 2012-9AR, Class DR, 4.18%, 7/15/23 (a)(b)			5,265		5,265,000
Apidos CLO IX, Series 2012-9AR, Class ER, 6.38%, 7/15/23 (a)(b)			1,000		1,000,000
Apidos CLO XIX:
Series 2014-19A, Class D, 4.02%, 10/17/26 (a)(b)			500		492,435
Series 2014-19A, Class E, 5.72%, 10/17/26 (a)(b)			2,700		2,558,137
Apidos CLO XVI:
Series 2013-16A, Class C, 3.53%, 1/19/25 (a)(b)			3,775		3,611,578
Series 2013-16A, Class D, 4.78%, 1/19/25 (a)(b)			1,810		1,650,611
Apidos CLO XVII:
Series 2014-17A, Class A1A, 1.77%, 4/17/26 (a)(b)			4,755		4,751,075
Series 2014-17A, Class B, 3.12%, 4/17/26 (a)(b)			9,020		9,019,914
Apidos CLO XVIII:
Series 2014-18A, Class C, 3.93%, 7/22/26 (a)(b)			3,950		3,841,204
Series 2014-18A, Class D, 5.48%, 7/22/26 (a)(b)			2,125		1,991,032
Apidos CLO XX, Series 2015-20A, Class B, 3.42%, 1/16/27 (a)(b)			1,000		1,003,000
Apidos CLO XXI, Series 2015-21A, Class C, 3.83%, 7/18/27 (a)(b)			500		490,650
ARES CLO Ltd.:
Series 2012-2A, Class CR, 2.97%, 10/12/23 (a)(b)			1,750		1,750,000
Series 2012-2A, Class DR, 3.97%, 10/12/23 (a)(b)			750		750,000
Series 2014-32A, Class A2, 2.57%, 11/15/25 (a)(b)			2,000		2,000,766
ARES XXIII CLO Ltd.:
Series 2012-1A, Class E, 5.88%, 4/19/23 (a)(b)			8,475		8,474,396
Series 2012-1AR, Class CR, 3.48%, 4/19/23 (a)(b)			2,500		2,500,162
Series 2012-1AR, Class DR, 4.43%, 4/19/23 (a)(b)			4,000		4,000,000

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 15

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
ARES XXV CLO Ltd.:
Series 2012-3A, Class D, 4.92%, 1/17/24 (a)(b)	USD		1,603	$	1,582,820
Series 2012-3X, Class C, 3.42%, 1/17/24 (b)			2,925		2,924,968
Series 2012-3X, Class D, 4.92%, 1/17/24 (b)			2,500		2,502,750
ARES XXXII CLO Ltd.:
Series 2014-32A, Class B, 3.52%, 11/15/25 (a)(b)			1,245		1,245,796
Series 2014-32A, Class C, 4.47%, 11/15/25 (a)(b)			2,485		2,484,888
ARES XXXIII CLO Ltd.:
Series 2015-1A, Class C, 4.56%, 12/05/26 (a)(b)			3,625		3,623,864
Series 2015-1A, Class D, 6.49%, 12/05/26 (a)(b)			750		739,262
Atlas Senior Loan Fund IV Ltd., Series 2013-2A, Class A3L, 2.97%, 2/17/26 (a)(b)			2,400		2,362,152
Atlas Senior Loan Fund Ltd., Series 2012-1A, Class B2L, 6.52%, 8/15/24 (a)(b)			1,625		1,633,612
Atlas Senior Loan Fund V Ltd.:
Series 2014-1A, Class C, 3.28%, 7/16/26 (a)(b)			1,125		1,125,000
Series 2014-1A, Class D, 3.73%, 7/16/26 (a)(b)			2,145		2,048,031
Atrium CDO Corp., Series 8A, Class D, 4.78%, 10/23/22 (a)(b)			11,135		11,135,250
Atrium IX, Series 9A, Class D, 3.79%, 2/28/24 (a)(b)			1,750		1,716,290
Atrium VII, Series 7AR, Class FR, 5.78%, 11/16/22 (a)(b)			8,210		8,209,494
Atrium X, Series 10A, Class A, 1.40%, 7/16/25 (a)(b)			3,856		3,818,892
Avalon IV Capital Ltd., Series 2012-1AR, Class CR, 3.12%, 4/17/23 (a)(b)			3,845		3,852,114
Babson CLO Ltd.:
Series 2014-3A, Class C1, 3.28%, 1/15/26 (a)(b)			5,885		5,902,655
Series 2014-3A, Class D1, 3.78%, 1/15/26 (a)(b)			2,985		2,880,525
Battalion CLO VII Ltd.:
Series 2014-7A, Class A2, 2.82%, 10/17/26 (a)(b)			4,540		4,545,740
Series 2014-7A, Class B, 3.87%, 10/17/26 (a)(b)			3,070		3,075,776
Series 2014-7A, Class C, 4.17%, 10/17/26 (a)(b)			6,030		5,880,953
Series 2014-7A, Class D, 5.57%, 10/17/26 (a)(b)			750		702,068
Battalion CLO VIII Ltd.:
Series 2015-8A, Class C, 4.19%, 4/18/27 (a)(b)			750		745,065
Series 2015-8A, Class D, 5.74%, 4/18/27 (a)(b)			3,060		2,885,458
Benefit Street Partners CLO II Ltd., Series 2013-IIA, Class A1, 1.48%, 7/15/24 (a)(b)			3,210		3,181,913
Benefit Street Partners CLO III Ltd., Series 2013-IIIA, Class C, 3.53%, 1/20/26 (a)(b)			2,530		2,411,682
Benefit Street Partners CLO IV Ltd.:
Series 2014-IVA, Class A1A, 1.77%, 7/20/26 (a)(b)			12,205		12,174,487
Series 2014-IVA, Class B, 3.08%, 7/20/26 (a)(b)			3,490		3,481,275
Series 2014-IVA, Class C, 3.78%, 7/20/26 (a)(b)			2,750		2,632,229

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Benefit Street Partners CLO Ltd., Series 2012-IA, Class C, 4.78%, 10/15/23 (a)(b)	USD		2,880	$	2,892,631
Benefit Street Partners CLO V Ltd.:
Series 2014-VA, Class C, 3.38%, 10/20/26 (a)(b)			3,235		3,222,869
Series 2014-VA, Class D, 3.83%, 10/20/26 (a)(b)			3,820		3,663,462
Series 2014-VA, Class E, 5.43%, 10/20/26 (a)(b)			2,490		2,307,228
Benefit Street Partners CLO VI Ltd.:
Series 2015-VIA, Class A2, 2.40%, 4/18/27 (a)(b)			4,480		4,491,200
Series 2015-VIA, Class B, 3.20%, 4/18/27 (a)(b)			4,270		4,270,000
Series 2015-VIA, Class C, 3.85%, 4/18/27 (a)(b)			2,640		2,587,200
Series 2015-VIA, Class D, 5.70%, 4/18/27 (a)(b)			2,000		1,945,000
Betony CLO Ltd.:
Series 2015-1A, Class C, 3.42%, 3/06/27 (a)(b)			1,225		1,228,675
Series 2015-1A, Class D, 3.87%, 3/06/27 (a)(b)			2,040		1,981,350
BlueMountain CLO Ltd.:
Series 2011-1A, Class E, 6.03%, 8/16/22 (a)(b)			1,575		1,583,005
Series 2013-1A, Class B, 2.92%, 5/15/25 (a)(b)			1,240		1,226,974
Series 2014-1A, Class C, 3.03%, 4/30/26 (a)(b)			2,068		2,043,911
Series 2014-4A, Class E, 5.58%, 11/30/26 (a)(b)			2,345		2,198,804
Series 2015-1A, Class B, 3.42%, 4/13/27 (a)(b)			1,000		1,003,449
Series 2015-1A, Class D, 5.72%, 4/13/27 (a)(b)			2,441		2,309,131
Series 2015-2A, Class E, 5.63%, 7/18/27 (a)(b)			750		715,875
Bowman Park CLO Ltd., Series 2014-1A, Class D2, 4.21%, 11/23/25 (a)(b)			4,945		4,933,272
Canyon Capital CLO Ltd.:
Series 2015-1A, Class B, 2.47%, 4/15/27 (a)(b)			2,250		2,221,611
Series 2015-1A, Class C, 3.42%, 4/15/27 (a)(b)			1,420		1,415,063
Carlyle Global Market Strategies CLO Ltd.:
Series 2011-1A, Class E, 5.71%, 8/10/21 (a)(b)			2,750		2,749,851
Series 2012-1A, Class DR, 4.02%, 4/20/22 (a)(b)			2,230		2,241,150
Series 2012-2AR, Class ER, 6.38%, 7/20/23 (a)(b)			8,750		8,750,191
Series 2012-3A, Class C, 4.78%, 10/04/24 (a)(b)			9,300		9,304,987
Series 2012-4A, Class D, 4.78%, 1/20/25 (a)(b)			3,753		3,756,972
Series 2012-4A, Class E, 5.78%, 1/20/25 (a)(b)			3,400		3,346,250
Series 2013-1A, Class D, 5.78%, 2/14/25 (a)(b)			500		485,654
Series 2014-1, Class C, 3.27%, 12/31/49 (a)(b)			8,300		8,307,070
Series 2014-2A, Class B2, 2.32%, 5/15/25 (a)(b)			9,895		9,899,070

See Notes to Financial Statements.

16 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Series 2014-3A, Class A2, 2.38%, 7/27/26 (a)(b)	USD		3,500	$	3,503,665
Series 2014-5A, Class C, 4.43%, 10/16/25 (a)(b)			3,035		3,036,863
Series 2015-1A, Class C, 3.41%, 4/20/27 (a)(b)			2,265		2,268,954
Series 2015-1A, Class D, 4.01%, 4/20/27 (a)(b)			2,475		2,437,875
Series 2015-1A, Class E1, 5.56%, 4/20/27 (a)(b)			2,265		2,151,750
Series 2015-2A, Class C, 4.02%, 4/27/27 (a)(b)			750		749,760
Series 2015-2A, Class D, 5.57%, 4/27/27 (a)(b)			1,220		1,160,732
Cedar Funding III CLO Ltd.:
Series 2014-3A, Class C, 2.96%, 5/20/26 (a)(b)			3,515		3,435,913
Series 2014-3A, Class D, 3.71%, 5/20/26 (a)(b)			2,945		2,782,788
Cent CLO 22 Ltd., Series 2014-22A, Class C, 4.03%, 11/07/26 (a)(b)			4,665		4,626,747
CIFC Funding Ltd.:
Series 2012-1AR, Class B1R, 4.43%, 8/14/24 (a)(b)			3,500		3,500,428
Series 2012-3A, Class A2L, 2.53%, 1/29/25 (a)(b)			4,480		4,480,526
Series 2014-1A, Class D, 3.53%, 4/18/25 (a)(b)			2,150		2,028,249
Series 2014-2A, Class A1L, 1.76%, 5/24/26 (a)(b)			10,360		10,311,864
Series 2014-2A, Class A3L, 3.13%, 5/24/26 (a)(b)			2,505		2,475,185
Series 2014-2A, Class B1L, 3.78%, 5/24/26 (a)(b)			7,755		7,429,440
Series 2014-3A, Class C1, 3.08%, 7/22/26 (a)(b)			1,107		1,089,090
Series 2014-3A, Class D, 3.68%, 7/22/26 (a)(b)			2,163		2,057,026
Series 2014-4A, Class D, 3.67%, 10/17/26 (a)(b)			3,755		3,566,742
Series 2014-5A, Class A1, 1.82%, 1/17/27 (a)(b)			22,630		22,661,429
Series 2014-5A, Class C, 3.59%, 1/17/27 (a)(b)			3,440		3,441,596
Series 2014-5A, Class D2, 4.74%, 1/17/27 (a)(b)			4,950		4,954,719
Series 2015-1A, Class A1, 1.79%, 1/22/27 (a)(b)			6,660		6,660,926
Series 2015-1A, Class B, 2.47%, 1/22/27 (a)(b)			1,630		1,631,488
Series 2015-1A, Class C, 3.27%, 1/22/27 (a)(b)			2,850		2,839,527
Series 2015-1A, Class D, 4.27%, 1/22/27 (a)(b)			1,470		1,449,936
Series 2015-2A, Class A, 1.67%, 4/15/27 (a)(b)			4,030		4,023,874
Series 2015-2A, Class D, 3.87%, 4/15/27 (a)(b)			2,220		2,153,533
CT CDO IV Ltd., Series 2006-4A, Class A1, 0.50%, 10/20/43 (a)(b)			2,127		2,123,064
Dryden 34 Senior Loan Fund, Series 2014-34A, Class C, 3.08%, 10/15/26 (a)(b)			3,000		2,999,978
Dryden 36 Senior Loan Fund:
Series 2014-36A, Class D, 4.02%, 11/09/25 (a)(b)			2,870		2,818,192
Series 2014-36A, Class E, 5.47%, 11/09/25 (a)(b)			1,245		1,173,449
Dryden Senior Loan Fund:
Series 2014-36A, Class B, 2.62%, 11/09/25 (a)(b)			3,500		3,508,750

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Series 2014-36A, Class C, 3.32%, 11/09/25 (a)(b)	USD		750	$	752,827
Dryden XXVIII Senior Loan Fund, Series 2013-28A, Class A1L, 1.37%, 8/15/25 (a)(b)			14,365		14,216,865
Dryden XXXI Senior Loan Fund, Series 2014-31A, Class C, 3.13%, 4/18/26 (a)(b)			3,025		3,017,887
ECP CLO Ltd., Series 2012-4A, Class A1, 1.62%, 6/19/24 (a)(b)			4,540		4,527,072
Flatiron CLO Ltd.:
Series 2012-1A, Class C, 4.78%, 10/25/24 (a)(b)			10,200		10,202,392
Series 2013-1A, Class A1, 1.67%, 1/17/26 (a)(b)			8,190		8,164,862
Fraser Sullivan CLO VII Ltd.:
Series 2012-7A, Class A2R, 2.78%, 4/20/23 (a)(b)			7,250		7,250,000
Series 2012-7A, Class BR, 3.28%, 4/20/23 (a)(b)			5,270		5,270,000
Series 2012-7A, Class CR, 4.28%, 4/20/23 (a)(b)			2,500		2,500,000
Series 2012-7A, Class D, 5.78%, 4/20/23 (a)(b)			5,000		4,957,649
Series 2012-7A, Class DR, 5.78%, 4/20/23 (a)(b)			5,000		5,000,000
Series 2012-7A, Class ER, 3.53%, 4/20/23 (a)(b)			2,925		2,732,337
Series 2012-7A, Class SUBR, 0.00%, 4/20/23 (a)			4,075		2,991,068
Galaxy XV CLO Ltd., Series 2013-15A, Class C, 2.88%, 4/15/25 (a)(b)			3,000		2,968,254
Galaxy XVIII CLO Ltd., Series 2014-18A, Class C1, 3.28%, 10/15/26 (a)(b)			5,500		5,510,422
GoldenTree Loan Opportunities IX Ltd., Series 2014-9A, Class D, 3.78%, 10/29/26 (a)(b)			3,297		3,184,035
GoldenTree Loan Opportunities VI Ltd.:
Series 2012-6A, Class D, 4.47%, 4/17/22 (a)(b)			1,000		1,000,817
Series 2012-6A, Class E, 5.77%, 4/17/22 (a)(b)			7,000		6,999,822
GoldenTree Loan Opportunities XI Ltd.:
Series 2015-11A, Class D, 4.01%, 4/18/27 (a)(b)			2,500		2,500,000
Series 2015-11A, Class E, 5.86%, 4/18/27 (a)(b)			3,250		3,142,750
Gramercy Park CLO Ltd., Series 2012-1AR, Class DR, 5.77%, 7/17/23 (a)(b)			8,630		8,629,780
GT Loan Financing I Ltd., Series 2013-1A, Class A, 1.55%, 10/28/24 (a)(b)			11,535		11,479,807
Highbridge Loan Management Ltd., Series 2014-4A, Class B, 3.28%, 7/28/25 (a)(b)			4,890		4,831,631
ING Investment Management CLO Ltd.:
Series 2012-1RA, Class BR, 3.04%, 3/14/22 (a)(b)			6,000		6,011,464
Series 2012-1RA, Class DR, 5.49%, 3/14/22 (a)(b)			3,000		2,984,868
Series 2013-3A, Class B, 2.98%, 1/18/26 (a)(b)			6,540		6,502,537
Keuka Park CLO Ltd., Series 2013-1A, Class D, 3.48%, 10/21/24 (a)(b)			2,245		2,160,501
KKR Financial CLO Ltd., Series 2013-1A, Class A1, 1.43%, 7/15/25 (a)(b)			7,785		7,687,687
LCM X LP:
Series 10AR, Class CR, 3.12%, 4/15/22 (a)(b)			1,855		1,858,661

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 17

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Series 10AR, Class DR, 4.02%, 4/15/22 (a)(b)	USD		1,500	$	1,503,162
Series 10AR, Class ER, 5.77%, 4/15/22 (a)(b)			5,060		5,027,367
LCM XV LP, Series 15A, Class C, 3.38%, 8/25/24 (a)(b)			1,795		1,796,114
LCM XVI LP, Series 16A, Class A, 1.78%, 7/15/26 (a)(b)			3,330		3,327,146
LCM XVIII LP:
Series 18A, Class C1, 3.45%, 4/20/27 (a)(b)			3,670		3,653,039
Series 18A, Class D, 4.10%, 4/20/27 (a)(b)			2,670		2,670,000
Series 18A, Class E, 5.65%, 4/20/27 (a)(b)			2,430		2,357,100
Series 18A, Class INC, 1.78%, 4/20/27 (a)(b)			4,335		3,901,500
Limerock CLO III LLC, Series 2014-3A, Class C, 3.83%, 10/20/26 (a)(b)			10,740		10,345,176
Madison Park Funding IX Ltd.:
Series 2012-9AR, Class AR, 1.57%, 8/15/22 (a)(b)			10,499		10,493,244
Series 2012-9AR, Class B2R, 2.31%, 8/15/22 (a)			4,400		4,405,540
Series 2012-9AR, Class C2R, 3.18%, 8/15/22 (a)			6,890		6,862,746
Series 2012-9AR, Class DR, 4.13%, 8/15/22 (a)(b)			4,250		4,238,952
Madison Park Funding VIII Ltd.:
Series 2012-8AR, Class CR, 3.08%, 4/22/22 (a)(b)			3,553		3,553,115
Series 2012-8AR, Class DR, 4.13%, 4/22/22 (a)(b)			2,454		2,463,714
Madison Park Funding X Ltd., Series 2012-10A, Class D, 4.53%, 1/20/25 (a)(b)			4,715		4,715,089
Madison Park Funding XI Ltd., Series 2013-11A, Class D, 3.78%, 10/23/25 (a)(b)			1,000		979,886
Madison Park Funding XIII Ltd., Series 2014-13A, Class C, 2.94%, 1/19/25 (a)(b)			2,066		2,060,055
Madison Park Funding XIV Ltd., Series 2014-14A, Class D, 3.88%, 7/25/26 (a)(b)			4,925		4,791,254
Madison Park Funding XV Ltd.:
Series 2014-15A, Class B1, 3.46%, 1/27/26 (a)(b)			1,170		1,177,985
Series 2014-15A, Class D, 5.66%, 1/27/26 (a)(b)			750		722,391
Madison Park Funding XVI Ltd.:
Series 2015-16A, Class A2A, 2.50%, 4/20/26 (a)(b)			1,850		1,853,700
Series 2015-16A, Class B, 3.30%, 4/20/26 (a)(b)			1,000		1,002,700
Series 2015-16A, Class C, 4.00%, 4/20/26 (a)(b)			1,200		1,200,720
Marea CLO Ltd.:
Series 2012-1A, Class B, 2.63%, 10/16/23 (a)(b)			2,143		2,143,041
Series 2012-1A, Class C, 3.73%, 10/16/23 (a)(b)			1,964		1,969,019
Series 2012-1A, Class D, 4.83%, 10/16/23 (a)(b)			2,500		2,493,456
Series 2012-1X, Class D, 4.83%, 10/16/23 (b)			1,500		1,496,074
Marine Park CLO Ltd.:
Series 2012-1A, Class D, 6.03%, 5/18/23 (a)(b)			1,000		1,002,542
Series 2015-1A, Class DR, 5.73%, 10/12/23 (a)(b)			1,000		1,000,000

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Mountain Hawk II CLO Ltd., Series 2013-2A, Class A1, 1.44%, 7/22/24 (a)(b)	USD		10,005	$	9,904,950
Muir Woods CLO Ltd., Series 2012-1A, Class C, 4.04%, 9/14/23 (a)(b)			4,700		4,722,931
Neuberger Berman CLO XII Ltd., Series 2012-12AR, Class ER, 6.53%, 7/25/23 (a)(b)			750		755,557
Neuberger Berman CLO XVI Ltd., Series 2014-16A, Class D, 3.63%, 4/15/26 (a)(b)			750		709,437
Neuberger Berman CLO XVIII Ltd.:
Series 2014-18A, Class B, 3.43%, 11/14/25 (a)(b)			2,490		2,508,874
Series 2014-18A, Class C, 4.03%, 11/14/25 (a)(b)			750		721,322
Series 2014-18A, Class D, 5.53%, 11/14/25 (a)(b)			750		696,564
Oaktree EIF II Ltd.:
Series 2014-A2, Class B, 2.57%, 11/15/25 (a)(b)			7,935		7,934,821
Series 2014-A2, Class C, 3.47%, 11/15/25 (a)(b)			6,860		6,859,783
Series 2015-B1A, Class B, 2.66%, 2/15/26 (a)(b)			1,950		1,950,013
Series 2015-B1A, Class C, 3.46%, 2/15/26 (a)(b)			2,850		2,832,573
OCP CLO Ltd.:
Series 2015-8A, Class A1, 1.80%, 4/17/27 (a)(b)			1,930		1,929,669
Series 2015-8A, Class A2A, 2.37%, 4/17/27 (a)(b)			2,490		2,481,794
Octagon Investment Partners XII Ltd.:
Series 2012-1AR, Class DR, 4.08%, 5/05/23 (a)(b)			5,965		5,989,990
Series 2012-1AR, Class ER, 5.78%, 5/05/23 (a)(b)			7,770		7,735,988
Octagon Investment Partners XIV Ltd., Series 2012-1A, Class C, 4.28%, 1/15/24 (a)(b)			1,000		1,000,265
Octagon Investment Partners XIX Ltd.:
Series 2014-1A, Class A, 1.80%, 4/15/26 (a)(b)			14,085		14,079,091
Series 2014-1A, Class F, 5.78%, 4/15/26 (a)(b)			3,950		3,334,789
Series 2014-1A, Class SUB, 0.00%, 4/15/26 (a)			5,600		4,364,963
Octagon Investment Partners XV Ltd., Series 2013-1A, Class E, 5.03%, 1/19/25 (a)(b)			1,250		1,153,572
Octagon Investment Partners XVI Ltd., Series 2013-1A, Class A, 1.39%, 7/17/25 (a)(b)			8,330		8,245,034
Octagon Investment Partners XVII Ltd., Series 2013-1A, Class A1, 1.61%, 10/25/25 (a)(b)			8,425		8,369,395
Octagon Investment Partners XVIII Ltd., Series 2013-1A, Class C, 3.98%, 12/16/24 (a)(b)			1,250		1,228,201
Octagon Investment Partners XX Ltd., Series 2014-1A, Class D, 3.93%, 8/12/26 (a)(b)			1,740		1,681,969
Octagon Investment Partners XXI Ltd.:
Series 2014-1A, Class C, 3.93%, 11/14/26 (a)(b)			5,925		5,720,787
Series 2014-1A, Class D, 6.88%, 10/25/26 (a)(b)			4,000		4,028,160
Octagon Investment Partners XXII Ltd.:
Series 2014-1A, Class B2, 2.58%, 1/15/27 (a)(b)			6,165		6,166,832

See Notes to Financial Statements.

18 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Series 2014-1A, Class C1, 3.53%, 1/15/27 (a)(b)	USD		2,445	$	2,448,025
Series 2014-1A, Class D1, 4.18%, 1/15/27 (a)(b)			2,040		2,000,492
Series 2014-1A, Class E1, 5.53%, 1/15/27 (a)(b)			1,245		1,163,247
OHA Credit Partners VI Ltd., Series 2012-6A, Class D, 4.77%, 5/15/23 (a)(b)			5,510		5,523,628
OHA Credit Partners VII Ltd., Series 2012-7A, Class A, 1.70%, 11/20/23 (a)(b)			7,500		7,493,383
OHA Intrepid Leveraged Loan Fund Ltd., Series 2011-1AR, Class DR, 3.33%, 4/20/21 (a)(b)			2,920		2,921,243
OHA Loan Funding Ltd.:
Series 2013-1A, Class E, 5.43%, 7/23/25 (a)(b)			2,364		2,236,147
Series 2013-2A, Class A, 1.55%, 8/23/24 (a)(b)			10,470		10,421,857
OZLM Funding III Ltd., Series 2013-3A, Class D, 5.28%, 1/22/25 (a)(b)			1,350		1,271,986
OZLM Funding Ltd.:
Series 2012-1A, Class B, 4.03%, 7/22/23 (a)(b)			1,750		1,750,516
Series 2012-2A, Class B, 3.50%, 10/30/23 (a)(b)			1,855		1,855,027
Series 2012-2X, Class B, 3.50%, 10/30/23 (b)			5,050		5,050,000
OZLM VII Ltd.:
Series 2014-7A, Class A2A, 2.32%, 7/17/26 (a)(b)			1,400		1,379,000
Series 2014-7A, Class C, 3.87%, 7/17/26 (a)(b)			3,256		3,133,554
Series 2014-7A, Class D, 5.27%, 7/17/26 (a)(b)			3,834		3,495,849
OZLM VIII Ltd.:
Series 2014-8A, Class A2A, 2.43%, 10/17/26 (a)(b)			15,005		15,024,052
Series 2014-8A, Class B, 3.27%, 10/17/26 (a)(b)			1,545		1,540,971
Series 2014-8A, Class C, 3.77%, 10/17/26 (a)(b)			4,985		4,767,412
OZLM XI Ltd.:
Series 2015-11A, Class B, 3.27%, 1/30/27 (a)(b)			2,219		2,220,627
Series 2015-11A, Class C1, 4.32%, 1/30/27 (a)(b)			3,876		3,869,411
Series 2015-11A, Class D, 5.67%, 1/30/27 (a)(b)			2,051		1,968,345
OZLM XII Ltd.:
Series 2015-12A, Class A1, 6.94%, 4/30/27 (a)(b)			2,560		2,552,370
Series 2015-12A, Class A2, 2.28%, 4/30/27 (a)(b)			4,840		4,805,792
Series 2015-12A, Class B, 3.18%, 4/30/27 (a)(b)			1,210		1,205,431
Series 2015-12A, Class C, 3.98%, 4/30/27 (a)(b)			2,375		2,289,426
Series 2015-12A, Class D, 5.68%, 4/30/27 (a)(b)			500		465,803
OZLM XIII Ltd., Series 2015-13A, Class C, 4.78%, 7/30/27			1,165		1,165,000
Palmer Square CLO Ltd.:
Series 2013-2A, Class A1A, 1.67%, 10/17/25 (a)(b)			10,000		9,974,000
Series 2014-1A, Class B, 2.82%, 10/17/22 (a)(b)			5,370		5,266,976
Series 2014-1A, Class C, 4.12%, 10/17/22 (a)(b)			3,230		3,201,841

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Race Point V CLO Ltd., Series 2011-5AR, Class DR, 4.04%, 12/15/22 (a)(b)	USD		4,360	$	4,351,084
Race Point VI CLO Ltd., Series 2012-6A, Class E, 6.03%, 5/24/23 (a)(b)			4,295		4,262,474
Race Point VIII CLO Ltd., Series 2013-8A, Class A, 1.53%, 2/20/25 (a)(b)			5,070		5,056,057
RAIT Preferred Funding II Ltd., Series 2007-2A, Class A1T, 0.48%, 6/25/45 (a)(b)			5,913		5,499,512
Regatta Funding LP, Series 2013-2A, Class D, 5.78%, 1/15/25 (a)(b)			1,750		1,673,492
Regatta IV Funding Ltd.:
Series 2014-1A, Class C, 3.23%, 7/25/26 (a)(b)			1,440		1,418,592
Series 2014-1A, Class D, 3.78%, 7/25/26 (a)(b)			1,730		1,666,361
Regatta V Funding Ltd.:
Series 2014-1A, Class B, 3.28%, 10/25/26 (a)(b)			2,665		2,632,104
Series 2014-1A, Class C, 3.73%, 10/25/26 (a)(b)			5,475		5,171,125
Series 2014-1A, Class D, 5.18%, 10/25/26 (a)(b)			2,495		2,253,134
Seneca Park CLO Ltd.:
Series 2014-1A, Class D, 3.78%, 7/17/26 (a)(b)			5,755		5,550,465
Series 2014-1A, Class SUB, 0.00%, 7/17/26 (a)			2,000		1,710,493
Sound Point CLO I Ltd., Series 2012-1A, Class C, 3.58%, 10/20/23 (a)(b)			5,400		5,400,136
Sound Point CLO II Ltd., Series 2013-1A, Class A3L, 3.03%, 4/26/25 (a)(b)			9,465		9,441,337
Sound Point CLO IV Ltd.:
Series 2013-3A, Class A, 1.65%, 1/21/26 (a)(b)			5,815		5,789,731
Series 2013-3A, Class D, 3.78%, 1/21/26 (a)(b)			2,225		2,159,912
Sound Point CLO IX Ltd.:
Series 2015-2A, Class D, 3.84%, 7/20/27 (a)(b)			1,300		1,227,200
Series 2015-2A, Class E, 5.54%, 7/20/27 (a)(b)			1,300		1,197,560
Sound Point CLO Ltd.:
Series 2015-8A, Class C, 3.26%, 4/16/27 (a)(b)			1,850		1,831,983
Series 2015-8A, Class D, 3.91%, 4/16/27 (a)(b)			2,250		2,168,527
Sound Point CLO VII Ltd., Series 2014-3A, Class D, 3.89%, 1/23/27 (a)(b)			2,910		2,798,217
Steele Creek CLO Ltd., Series 2014-1A, Class C, 3.48%, 8/21/26 (a)(b)			3,565		3,565,000
Stewart Park CLO Ltd., Series 2015-1A, Class E, 5.72%, 4/15/26 (a)(b)			4,455		4,076,325
Symphony CLO Ltd.:
Series 2012-10AR, Class CR, 3.12%, 7/23/23 (a)(b)			6,900		6,902,181
Series 2012-10AR, Class DR, 4.12%, 7/23/23 (a)(b)			1,825		1,830,896
Series 2012-10AR, Class ER, 6.12%, 7/23/23 (a)(b)			5,300		5,313,941
Symphony CLO VII Ltd.:
Series 2011-7A, Class B, 2.18%, 7/28/21 (a)(b)			5,630		5,635,094
Series 2011-7A, Class F, 5.68%, 7/28/21 (a)(b)			2,390		2,354,139
Symphony CLO VIII LP, Series 2012-8AR, Class ER, 6.27%, 1/09/23 (a)(b)			6,880		6,922,993

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 19

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (continued)
Symphony CLO XV Ltd.:
Series 2014-15A, Class C, 3.47%, 10/17/26 (a)(b)	USD		3,940	$	3,944,946
Series 2014-15A, Class D, 4.02%, 10/17/26 (a)(b)			6,225		6,225,000
Series 2014-15A, Class E, 5.32%, 10/17/26 (a)(b)			2,075		1,923,211
TICP CLO I Ltd.:
Series 2014-1A, Class A1, 1.78%, 4/26/26 (a)(b)			9,180		9,179,931
Series 2015-1A, Class C, 3.38%, 7/20/27 (a)(b)			1,210		1,199,337
Series 2015-1A, Class D, 3.93%, 7/20/27 (a)(b)			1,210		1,145,156
TICP CLO II Ltd., Series 2014-2A, Class B, 3.28%, 7/26/26 (a)(b)			2,930		2,935,626
TICP CLO III Ltd.:
Series 2014-3A, Class A, 1.82%, 1/20/27 (a)(b)			9,965		9,960,178
Series 2014-3A, Class B1, 2.63%, 1/20/27 (a)(b)			2,134		2,136,527
Series 2014-3A, Class C, 3.53%, 1/20/27 (a)(b)			2,885		2,887,144
Series 2014-3A, Class D1, 4.03%, 1/20/27 (a)(b)			500		480,951
Series 2014-3A, Class D2, 4.46%, 1/20/27 (a)(b)			2,475		2,448,247
Treman Park CLO LLC, Series 2015-1A, Class D, 4.12%, 4/20/27 (a)(b)			6,000		5,925,000
Triaxx Prime CDO Ltd., Series 2006-1A, Class A2, 0.73%, 3/03/39 (a)(b)			50,060		15,143,150
Venture X CLO Ltd., Series 2012-10A, Class C, 3.53%, 7/20/22 (a)(b)			4,063		4,063,024
Venture XI CLO Ltd.:
Series 2012-11AR, Class CR, 3.23%, 11/14/22 (a)(b)			750		748,086
Series 2012-11AR, Class DR, 4.23%, 11/14/22 (a)(b)			1,075		1,069,352
Series 2012-11AR, Class ER, 6.43%, 11/14/22 (a)(b)			625		624,987
Venture XII CLO Ltd., Series 2012-12A, Class D, 3.94%, 2/28/24 (a)(b)			375		368,590
Venture XIX CLO Ltd.:
Series 2014-19A, Class A, 1.85%, 1/15/26 (a)(b)			9,605		9,627,778
Series 2014-19A, Class B, 2.70%, 1/15/26 (a)(b)			3,940		3,923,874
Series 2014-19A, Class C, 3.55%, 1/15/26 (a)(b)			2,830		2,837,075
Venture XVI CLO Ltd., Series 2014-16A, Class A3L, 3.03%, 4/15/26 (a)(b)			1,750		1,720,999
Venture XVII CLO Ltd., Series 2014-17A, Class C, 3.13%, 7/15/26 (a)(b)			3,066		3,058,772
Venture XVIII CLO Ltd.:
Series 2014-18A, Class C, 3.35%, 10/15/26 (a)(b)			4,164		4,163,964
Series 2014-18A, Class D, 4.00%, 10/15/26 (a)(b)			2,525		2,431,127
Venture XX CLO Ltd.:
Series 2015-20A, Class B1, 2.38%, 4/15/27 (a)(b)			6,370		6,370,637
Series 2015-20A, Class C, 3.43%, 4/15/27 (a)(b)			3,270		3,275,559
Series 2015-20A, Class D, 4.13%, 4/15/27 (a)(b)			1,330		1,317,365

Asset-Backed Securities		Par  (000)		Value
Cayman Islands (concluded)
Venture XXI CLO Ltd., Series 2015-21A, Class D, 3.78%, 7/15/27 (a)(b)	USD		1,470	$	1,430,598
Voya CLO Ltd.:
Series 2012-2RA, Class BR, 2.22%, 10/15/22 (a)(b)			10,710		10,711,714
Series 2012-2RA, Class CR, 3.22%, 10/15/22 (a)(b)			7,610		7,612,816
Series 2012-2RA, Class DR, 4.22%, 10/15/22 (a)(b)			6,320		6,321,959
Series 2012-2RA, Class ER, 6.27%, 10/15/22 (a)(b)			2,105		2,105,926
Series 2012-4A, Class C, 4.78%, 10/15/23 (a)(b)			3,865		3,875,035
Series 2013-1A, Class A1, 1.42%, 4/15/24 (a)(b)			3,876		3,835,858
Series 2013-3A, Class A1, 1.73%, 1/18/26 (a)(b)			6,770		6,753,931
Series 2014-3A, Class C, 3.88%, 7/25/26 (a)(b)			5,235		5,072,835
Series 2014-4A, Class A2A, 2.68%, 10/14/26 (a)(b)			2,490		2,494,348
Series 2014-4A, Class B, 3.63%, 10/14/26 (a)(b)			1,455		1,459,381
Series 2014-4A, Class C, 4.28%, 10/14/26 (a)(b)			3,475		3,423,496
Series 2014-4A, Class D, 5.78%, 10/14/26 (a)(b)			2,075		1,971,826
Series 2015-1A, Class D, 5.88%, 4/18/27 (a)(b)			1,225		1,182,125
Washington Mill CLO Ltd., Series 2014-1A, Class A1, 1.78%, 4/20/26 (a)(b)			5,750		5,751,150
WhiteHorse IX Ltd., Series 2014-9A, Class C, 2.97%, 7/17/26 (a)(b)			2,780		2,688,610
Ziggurat CLO I Ltd., Series 2014-1A, Class C, 3.38%, 10/17/26 (a)(b)			3,320		3,326,640
					1,316,793,373
Ireland — 0.2%
ALME Loan Funding II Ltd.:
Series 2X, Class A, 1.48%, 8/15/27 (b)	EUR		5,750		6,396,260
Series 2X, Class E, 5.18%, 8/15/27 (b)			2,595		2,808,669
Series 2X, Class F, 5.93%, 8/15/27 (b)			1,730		1,763,506
Arbour CLO Ltd.:
Series 2014-1X, Class E, 5.01%, 6/16/27 (b)			2,706		2,920,226
Series 2014-1X, Class F, 5.76%, 6/16/27 (b)			1,352		1,354,898
Avoca CLO XI Ltd., Series 11X, Class A, 1.41%, 7/15/27 (b)			8,800		9,810,714
Avoca CLO XIII Ltd., Series 13X, Class E, 5.49%, 1/21/28 (b)			1,570		1,750,318
Avoca CLO XIV Ltd.:
Series 14X, Class E, 4.81%, 7/12/28 (b)			1,100		1,198,745
Series 14X, Class F, 5.81%, 7/12/28 (b)			1,100		1,146,625
Series 14X, Class SUB, 0.00%, 7/12/28			4,200		4,284,376
CVC Cordatus Loan Fund III Ltd., Series 3X, Class A1, 1.52%, 7/08/27 (b)			10,810		12,051,870
CVC Cordatus Loan Fund IV Ltd.:
Series 4X, Class E, 6.11%, 1/22/28 (b)			1,700		1,900,831
Series 4X, Class F, 6.71%, 1/22/28 (b)			2,100		2,230,027
Series 4X, Class SUB, 0.21%, 1/22/28 (b)			10,200		10,689,202
Harvest CLO XI Ltd., Series 11X, Class E, 5.34%, 3/26/29 (b)			5,400		5,993,128

See Notes to Financial Statements.

20 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
Ireland (concluded)
Sorrento Park CLO Ltd., Series 1X, Class E, 6.24%, 11/16/27 (b)	EUR		1,710	$	1,804,405
					68,103,800
Italy — 0.1%
Arianna SPV Srl:
Series 1, Class A, 3.60%, 10/20/30			11,261		13,028,852
Series 1, Class B, 5.50%, 1/20/20			2,800		3,337,662
Asset Backed European Securitisation Transaction Ten Srl, Series 10, Class A, 0.51%, 12/10/28 (b)			11,111		12,408,072
Auto ABS, Series 2012-2, Class A, 2.80%, 4/27/25			522		584,085
Berica PMI, Series 1, Class A1X, 2.39%, 5/31/57 (b)			740		832,021
Colombo Srl, Series 1, Class B, 0.49%, 8/28/26 (b)			2,993		3,285,223
					33,475,915
Luxembourg — 0.1%
Harvest CLO:
Series 11X, Class A1, 1.34%, 3/26/29 (b)			4,380		4,875,239
Series 11X, Class SUB, 0.00%, 3/26/29 (b)			10,151		9,782,297
					14,657,536
Netherlands — 0.2%
Euro-Galaxy IV CLO:
Series 2015-4X, Class D, 3.42%, 7/30/28 (b)			2,625		2,895,759
Series 2015-4X, Class E, 4.57%, 7/30/28 (b)			3,535		3,747,893
Series 2015-4X, Class F, 6.32%, 7/30/28 (b)			1,590		1,682,211
Jubilee BV, Series 2014-11X, Class A, 1.47%, 4/15/27 (b)			8,790		9,803,542
Jubilee CDO VIII BV, Series VIII-X, Class SUB, 5.17%, 1/15/24 (b)			5,820		3,069,269
North Westerly CLO IV 2013 BV, Series IV-X, Class A-1, 1.62%, 1/15/26 (b)			13,800		15,400,867
St. Pauls CLO, Series 4X, Class A1, 1.40%, 4/25/28 (b)			13,250		14,783,548
					51,383,089
Portugal — 0.1%
TAGUS-Sociedade de Titularizacao de Creditos SA/Volta Electricity Receivables, Series 1, Class SNR, 4.17%, 2/16/17			6,677		7,517,746
TAGUS-Sociedade de Titularizacao de Creditos SA/Volta II Electricity Receivables, Series 2, Class SNR, 2.98%, 2/16/18			24,980		28,215,823
					35,733,569
United Kingdom — 0.0%
E-CARAT PLC, Series 5, Class B, 1.46%, 4/18/23 (b)	GBP		5,900		9,270,316
United States — 6.5%
ACE Securities Corp. Home Equity Loan Trust, Series 2006-CW1, Class A2D, 0.44%, 7/25/36 (b)	USD		6,460		3,626,147
American Homes 4 Rent:
Series 2014-SFR2, Class A, 3.79%, 10/17/36 (a)			11,181		11,506,355
Series 2014-SFR2, Class E, 6.23%, 10/17/36 (a)			9,490		10,194,708
Argent Mortgage Loan Trust, Series 2005-W1, Class A2, 0.42%, 5/25/35 (b)			6,062		4,680,530

Asset-Backed Securities		Par  (000)		Value
United States (continued)
B2R Mortgage Trust, Series 2015-1, Class A1, 2.52%, 5/15/48 (a)	USD		4,601	$	4,576,643
Bayview Financial Revolving Asset Trust, Series 2004-B, Class A1, 1.19%, 5/28/39 (a)(b)			40,531		31,412,149
Bayview Opportunity Master Fund IIA Trust, Series 2012-4NR3, Class A, 3.72%, 2/28/35 (a)(b)			5,777		5,788,258
Bayview Opportunity Master Fund IIIA Trust, Series 2014-16RP, Class A, 3.84%, 11/28/29 (a)(c)			21,821		21,820,640
Bayview Opportunity Master Fund IIIB RPL Trust, Series 2015-3, Class A1, 3.62%, 4/28/30 (a)(c)			9,500		9,520,346
BCMSC Trust:
Series 2000-A, Class A2, 7.58%, 6/15/30 (b)			7,912		4,294,592
Series 2000-A, Class A3, 7.83%, 6/15/30 (b)			7,345		4,116,585
Series 2000-A, Class A4, 8.29%, 6/15/30 (b)			12,576		7,449,612
Bear Stearns Asset Backed Securities I Trust, Series 2007-FS1, Class 1A3, 0.35%, 5/25/35 (b)			5,785		4,641,778
Bear Stearns Asset-Backed Securities I Trust:
Series 2006-HE10, Class 22A, 0.32%, 12/25/36 (b)			18,316		14,127,013
Series 2006-HE7, Class 1A2, 0.35%, 9/25/36 (b)			11,855		9,597,925
Series 2007-AQ2, Class A2, 0.35%, 1/25/37 (b)			7,454		6,304,986
Series 2007-HE1, Class 21A2, 0.34%, 1/25/37 (b)			5,744		5,174,575
Series 2007-HE2, Class 22A, 0.32%, 3/25/37 (b)			6,669		5,310,859
Bear Stearns Second Lien Trust, Series 2007-SV1A, Class M1, 1.38%, 12/25/36 (a)(b)			5,370		4,978,425
BOAA, Series 2012-1, Class R, 0.00%, 3/15/19 (d)			15,938		1,635,352
Carrington Mortgage Loan Trust:
Series 2005-FRE1, Class M1, 0.65%, 12/25/35 (b)			8,987		7,556,917
Series 2006-FRE1, Class A4, 0.43%, 7/25/36 (b)			9,244		5,516,361
Series 2006-NC3, Class A4, 0.42%, 8/25/36 (b)			9,267		5,812,401
Series 2006-NC5, Class A3, 0.33%, 1/25/37 (b)			2,500		1,543,140
Series 2006-NC5, Class A4, 0.40%, 1/25/37 (b)			4,026		2,470,539
Series 2007-FRE1, Class A2, 0.38%, 2/25/37 (b)			5,668		5,294,589
Series 2007-RFC1, Class A3, 0.32%, 12/25/36 (b)			24,894		16,234,396
Chesapeake Funding LLC:
Series 2013-1A, Class B, 1.18%, 1/07/25 (a)(b)			1,730		1,724,080
Series 2014-1A, Class B, 0.98%, 3/07/26 (a)(b)			1,965		1,961,610
Series 2014-1A, Class C, 1.38%, 3/07/26 (a)(b)			1,145		1,140,725
Series 2014-1A, Class D, 1.73%, 3/07/26 (a)(b)			3,245		3,236,823
CHLUPA Trust:
Series 2013-VM, Class A, 3.33%, 8/15/20 (a)			6,525		6,541,521
Series 2014-HD, Class A, 2.92%, 2/15/21 (a)			10,794		10,766,955

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 21

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
United States (continued)
Chrysler Capital Auto Receivables Trust:
Series 2013-AA, Class B, 1.83%, 3/15/19 (a)	USD		2,080	$	2,092,696
Series 2013-AA, Class C, 2.28%, 7/15/19 (a)			4,330		4,355,603
Series 2013-BA, Class B, 1.78%, 6/17/19 (a)			3,660		3,661,036
Series 2013-BA, Class C, 2.24%, 9/16/19 (a)			3,785		3,783,418
CIFC Funding Ltd.:
Series 2012-2A, Class A1R, 1.63%, 12/05/24 (a)(b)			4,430		4,426,023
Series 2012-2A, Class B2R, 6.03%, 5/26/27 (a)(b)			1,250		1,243,458
Conseco Financial Corp., Series 1998-6, Class M1, 6.63%, 6/01/30			3,290		2,915,048
Countrywide Asset-Backed Certificates:
Series 2006-12, Class 2A2, 0.33%, 12/25/36 (b)			7,691		7,277,465
Series 2006-16, Class 1A, 0.32%, 12/25/46 (b)			10,089		7,828,264
Series 2006-19, Class 2A2, 0.34%, 3/25/37 (b)			13,984		12,915,694
Series 2006-S3, Class A3, 6.43%, 6/25/21 (c)			3,553		3,609,427
Series 2006-S3, Class A4, 6.44%, 1/25/29 (c)			2,558		2,485,638
Series 2007-13, Class 1A, 1.02%, 10/25/47 (b)			13,191		11,027,783
Credit Suisse ABS Repackaging Trust, Series 2013-A, Class B, 2.50%, 1/25/30 (a)			28,549		27,697,516
CWHEQ Home Equity Loan Trust:
Series 2006-S5, Class A4, 5.84%, 6/25/35			5,141		4,964,837
Series 2006-S5, Class A5, 6.16%, 6/25/35			3,188		2,884,760
DCP Rights LLC, Series 2014-1A, Class A, 5.46%, 10/25/44 (a)			40,451		40,580,188
First Franklin Mortgage Loan Trust, Series 2006-FF16, Class 2A4, 0.39%, 12/25/36 (b)			9,898		6,252,136
FirstKey Lending Trust, Series 2015-SFR1, Class A, 2.55%, 3/09/47 (a)			3,158		3,160,737
Fremont Home Loan Trust, Series 2006-3, Class 2A3, 0.35%, 2/25/37 (b)			8,955		5,052,599
GFT Mortgage Loan Trust, Series 2015-GFT1, Class A, 3.72%, 1/25/55 (a)(c)			12,007		12,022,705
Highbridge Loan Management Ltd.:
Series 2015-6A, Class D, 1.27%, 3/17/27 (a)(b)			1,820		1,783,600
Series 2015-6A, Class E, 5.72%, 3/17/27 (a)(b)			1,620		1,547,100
Home Loan Mortgage Loan Trust, Series 2005-1, Class A3, 0.55%, 4/15/36 (b)			9,656		8,531,689
Hyundai Auto Receivables Trust, Series 2013-B, Class CERT, 0.00%, 9/16/19			4,399		2,710,892
Invitation Homes Trust:
Series 2013-SFR1, Class F, 3.90%, 12/17/30 (a)(b)			1,649		1,652,141
Series 2014-SFR1, Class A, 1.18%, 6/17/31 (a)(b)			7,795		7,705,303
Series 2014-SFR2, Class A, 1.29%, 9/17/31 (a)(b)			6,215		6,151,949
Series 2015-SFR1, Class A, 1.64%, 3/17/32 (a)(b)			3,259		3,266,192
Series 2015-SFR1, Class E, 4.39%, 3/17/17 (a)(b)			3,266		3,315,186

Asset-Backed Securities		Par  (000)		Value
United States (continued)
Series 2015-SFR2, Class A, 1.54%, 6/17/32 (a)(b)	USD		6,783	$	6,760,607
Irwin Home Equity Loan Trust, Series 2006-P1, Class 1A, 0.32%, 12/25/36 (a)(b)			1,454		1,255,734
Lehman XS Trust, Series 2007-1, Class 2A1, 5.51%, 2/25/37 (b)			7,586		7,100,573
Litigation Fee Residual Funding LLC, Series 2015-1, Class A, 3.50%, 10/01/27 (a)			30,789		30,789,000
Long Beach Mortgage Loan Trust:
Series 2005-WL1, Class M4, 1.23%, 6/25/35 (b)			8,755		6,953,212
Series 2006-1, Class 1A, 0.40%, 2/25/36 (b)			6,801		5,340,283
Series 2006-1, Class 2A3, 0.37%, 2/25/36 (b)			12,276		8,278,125
Series 2006-10, Class 2A2, 0.29%, 11/25/36 (b)			2,071		991,051
Series 2006-10, Class 2A3, 0.34%, 11/25/36 (b)			21,146		10,206,396
Series 2006-10, Class 2A4, 0.40%, 11/25/36 (b)			4,151		2,023,523
Series 2006-11, Class 1A, 0.34%, 12/25/36 (b)			20,773		12,872,549
Series 2006-3, Class 2A3, 0.36%, 5/25/46 (b)			9,424		4,038,342
Series 2006-3, Class 2A4, 0.45%, 5/25/46 (b)			5,569		2,428,907
Series 2006-6, Class 1A, 0.33%, 7/25/36 (b)			31,225		21,947,878
Morgan Stanley Mortgage Loan Trust:
Series 2006-15XS, Class A2B, 5.51%, 11/25/36 (c)			9,485		6,292,728
Series 2007-7AX, Class 1A, 0.40%, 4/25/37 (b)			60,487		28,780,976
MSCC Heloc Trust, Series 2007-1, Class A, 0.28%, 12/25/31 (b)			1,504		1,435,648
Navient Private Education Loan Trust:
Series 2014-AA, Class A2A, 2.74%, 2/15/29 (a)			14,285		14,355,768
Series 2014-AA, Class A2B, 1.44%, 2/15/29 (a)(b)			3,800		3,852,337
Series 2014-AA, Class A3, 1.79%, 10/15/31 (a)(b)			17,812		17,988,695
Series 2014-AA, Class B, 3.50%, 8/15/44 (a)			14,970		13,773,478
Series 2014-CTA, Class A, 0.89%, 9/16/24 (a)(b)			14,892		14,866,597
Series 2014-CTA, Class B, 1.94%, 10/17/44 (a)(b)			16,230		15,919,471
Series 2015-AA, Class A2B, 1.38%, 12/15/28 (a)(b)			24,825		25,097,132
Series 2015-AA, Class A3, 1.89%, 11/15/30 (a)(b)			10,143		10,320,016
Series 2015-AA, Class B, 3.50%, 12/15/44 (a)			10,722		9,849,390
Nelnet Student Loan Trust:
Series 2008-3, Class A4, 1.93%, 11/25/24 (b)			4,435		4,525,984
Series 2014-2A, Class A3, 1.03%, 7/27/37 (a)(b)			12,770		12,770,753
Neuberger Berman CLO XVII Ltd., Series 2014-17A, Class D, 3.83%, 8/04/25 (a)(b)			2,833		2,691,515
NextGear Floorplan Master Owner Trust:
Series 2014-1A, Class A, 1.92%, 10/15/19 (a)			39,345		39,478,183

See Notes to Financial Statements.

22 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
United States (continued)
Series 2014-1A, Class B, 2.61%, 10/15/19 (a)	USD		3,240	$	3,254,894
OneMain Financial Issuance Trust:
Series 2014-1A, Class A, 2.43%, 6/18/24 (a)			72,400		72,805,440
Series 2014-1A, Class B, 3.24%, 6/18/24 (a)			30,597		30,781,041
Series 2014-2A, Class A, 2.47%, 9/18/24 (a)			23,985		24,112,360
Series 2014-2A, Class B, 3.02%, 9/18/24 (a)			7,500		7,558,425
Series 2014-2A, Class C, 4.33%, 9/18/24 (a)			13,875		13,999,181
Series 2014-2A, Class D, 5.31%, 9/18/24 (a)			24,570		24,654,029
Series 2015-1A, Class A, 3.19%, 3/18/26 (a)			27,155		27,540,873
Series 2015-1A, Class B, 3.85%, 3/18/26 (a)			9,175		9,423,275
Series 2015-1A, Class C, 5.12%, 3/18/26 (a)			7,260		7,487,311
Series 2015-1A, Class D, 6.63%, 3/18/26 (a)			10,056		10,472,017
Series 2015-2A, Class A, 2.57%, 7/18/25 (a)			36,150		36,177,474
Series 2015-2A, Class B, 3.10%, 7/18/25 (a)			22,816		22,886,730
Series 2015-2A, Class C, 4.32%, 7/18/25 (a)			21,300		21,300,000
Series 2015-2A, Class D, 5.64%, 7/18/25 (a)			10,530		10,530,000
Option One Mortgage Loan Trust, Series 2007-FXD1, Class 3A4, 5.86%, 1/25/37 (c)			7,305		6,840,000
PFS Financing Corp., Series 2014-AA, Class B, 1.14%, 2/15/19 (a)(b)			4,725		4,730,306
Pinnacle Park CLO Ltd.:
Series 2014-1A, Class D, 3.78%, 4/15/26 (a)(b)			4,080		3,936,845
Series 2014-1A, Class E, 5.23%, 4/15/26 (a)(b)			1,500		1,386,849
Progress Residential Trust:
Series 2014-SFR1, Class F, 4.89%, 10/17/31 (a)(b)			2,082		2,146,640
Series 2015-SFR1, Class A, 1.59%, 2/17/32 (a)(b)			14,186		14,143,385
Series 2015-SFR1, Class E, 4.18%, 2/17/32 (a)(b)			4,675		4,704,308
Series 2015-SFR2, Class A, 2.74%, 6/12/32 (a)			8,120		8,057,809
Residential Asset Mortgage Products Trust, Series 2006-RZ4, Class A3, 0.45%, 10/25/36 (b)			29,004		24,360,808
RMAT LLC, Series 2015-RPL1, Class A1, 3.97%, 5/26/20 (a)(c)			12,807		12,807,479
SACO I Trust, Series 2006-9, Class A1, 0.48%, 8/25/36 (b)			6,053		7,677,705
Santander Drive Auto Receivables Trust:
Series 2014-S1, Class Cert, 0.00%, 8/16/18 (a)			0(e)		3,640,210
Series 2014-S1, Class R, 1.42%, 8/16/18 (a)			1,919		1,922,341
Series 2014-S2, Class Cert, 0.00%, 11/16/18 (a)			0(e)		2,430,000
Series 2014-S2, Class R, 1.43%, 11/16/18 (a)			3,272		3,280,595
Series 2014-S3, Class Cert, 0.00%, 2/19/19 (a)			0(e)		4,338,950

Asset-Backed Securities		Par  (000)		Value
United States (continued)
Series 2014-S3, Class R, 1.44%, 2/19/19 (a)	USD		2,353	$	2,360,343
Series 2014-S4, Class Cert, 0.00%, 4/16/19 (a)			0(e)		5,747,700
Series 2014-S4, Class R, 1.43%, 4/16/19 (a)			3,657		3,669,658
Series 2014-S5, Class R, 1.43%, 6/18/19 (a)			3,481		3,492,507
Series 2014-S6, Class R, 1.43%, 12/17/19 (a)			5,354		5,366,874
Scholar Funding Trust, Series 2011-A, Class A, 1.18%, 10/28/43 (a)(b)			2,866		2,885,872
Silver Bay Realty Trust:
Series 2014-1, Class A, 1.19%, 9/17/31 (a)(b)			3,559		3,516,049
Series 2014-1, Class E, 3.44%, 9/17/31 (a)(b)			2,475		2,408,814
Series 2014-1, Class F, 3.74%, 9/17/31 (a)(b)			4,080		4,066,422
SLC Private Student Loan Trust:
Series 2006-A, Class A5, 0.45%, 7/15/36 (b)			5,260		5,229,699
Series 2006-A, Class C, 0.73%, 7/15/36 (b)			9,086		8,047,625
SLM Private Credit Student Loan Trust:
Series 2003-B, Class A2, 0.69%, 3/15/22 (b)			2,941		2,920,266
Series 2004-A, Class A3, 0.69%, 6/15/33 (b)			34,701		33,249,145
Series 2004-B, Class A2, 0.49%, 6/15/21 (b)			1,210		1,204,015
Series 2004-B, Class A3, 0.62%, 3/15/24 (b)			39,355		37,737,037
Series 2005-B, Class A2, 0.47%, 3/15/23 (b)			4,976		4,951,368
Series 2006-A, Class A4, 0.48%, 12/15/23 (b)			16,329		16,155,324
Series 2006-B, Class A4, 0.47%, 3/15/24 (b)			4,968		4,929,123
Series 2006-B, Class A5, 0.56%, 12/15/39 (b)			3,660		3,205,197
Series 2006-C, Class A4, 0.46%, 3/15/23 (b)			3,618		3,565,793
Series 2007-A, Class A2, 0.41%, 9/15/25 (b)			11,236		11,121,581
Series 2007-A, Class A3, 0.46%, 12/15/26 (b)			7,225		6,884,681
SLM Private Education Loan Trust:
Series 2011-A, Class A2, 4.37%, 4/17/28 (a)			2,000		2,123,052
Series 2011-B, Class A2, 3.74%, 2/15/29 (a)			3,340		3,507,551
Series 2011-B, Class A3, 2.44%, 6/16/42 (a)(b)			11,165		11,801,472
Series 2011-C, Class A2B, 4.54%, 10/17/44 (a)			7,690		8,258,414
Series 2012-A, Class A1, 1.59%, 8/15/25 (a)(b)			922		929,277
Series 2012-A, Class A2, 3.83%, 1/17/45 (a)			11,210		11,815,452
Series 2012-B, Class A2, 3.48%, 10/15/30 (a)			5,750		5,954,453
Series 2012-C, Class A1, 1.29%, 8/15/23 (a)(b)			1,498		1,502,701
Series 2012-C, Class A2, 3.31%, 10/15/46 (a)			9,015		9,344,552

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 23

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Asset-Backed Securities		Par  (000)		Value
United States (continued)
Series 2012-D, Class A2, 2.95%, 2/15/46 (a)	USD		25,520	$	26,211,873
Series 2012-E, Class A2A, 2.09%, 6/15/45 (a)			8,025		8,083,823
Series 2013-A, Class A1, 0.79%, 8/15/22 (a)(b)			4,183		4,186,559
Series 2013-A, Class A2A, 1.77%, 5/17/27 (a)			7,730		7,682,947
Series 2013-A, Class B, 2.50%, 3/15/47 (a)			17,440		16,875,467
Series 2013-B, Class A1, 0.84%, 7/15/22 (a)(b)			3,830		3,835,938
Series 2013-B, Class A2A, 1.85%, 6/17/30 (a)			5,215		5,173,030
Series 2013-B, Class A2B, 1.29%, 6/17/30 (a)(b)			9,970		10,075,772
Series 2013-B, Class B, 3.00%, 5/16/44 (a)			15,415		15,104,280
Series 2013-C, Class A2A, 2.94%, 10/15/31 (a)			15,620		16,085,585
Series 2013-C, Class B, 3.50%, 6/15/44 (a)			19,840		19,885,612
Series 2014-A, Class A2A, 2.59%, 1/15/26 (a)			2,800		2,844,601
Series 2014-A, Class A2B, 1.34%, 1/15/26 (a)(b)			13,940		14,043,142
Series 2014-A, Class B, 3.50%, 11/15/44 (a)			16,505		16,158,956
SoFi Professional Loan Program:
Series 2014-A, Class A1, 1.78%, 6/25/25 (a)(b)			2,776		2,813,739
Series 2014-A, Class A2, 3.02%, 10/25/27 (a)			8,054		8,215,684
SoFi Professional Loan Program LLC:
Series 2014-B, Class A2, 2.55%, 8/25/29 (a)			17,161		17,229,912
Series 2015-A, Class A2, 2.42%, 3/25/30 (a)			13,375		13,380,007
Series 2015-B, Class A1, 1.31%, 4/25/35 (a)(b)			12,070		12,070,000
Series 2015-B, Class A2, 2.51%, 9/27/32 (a)			22,890		22,885,422
Soundview Home Loan Trust, Series 2006-EQ1, Class A4, 0.43%, 10/25/36 (b)			10,000		6,859,130
SpringCastle America Funding LLC:
Series 2014-AA, Class A, 2.70%, 5/25/23 (a)			52,387		52,711,426
Series 2014-AA, Class B, 4.61%, 10/25/27 (a)			47,127		48,197,961
Springleaf Funding Trust:
Series 2015-AA, Class A, 3.16%, 11/15/24 (a)			56,016		56,680,518
Series 2015-AA, Class B, 3.62%, 11/15/24 (a)			29,600		29,912,990
Structured Asset Investment Loan Trust, Series 2005-HE3, Class M1, 0.66%, 9/25/35 (b)			6,545		5,837,904
Sunset Mortgage Loan Co. LLC, Series 2014-NPL2, Class A, 3.72%, 11/16/44 (a)(c)			25,799		25,702,377
Tricon American Homes Trust, Series 2015-SFR1, Class A, 1.44%, 5/17/32 (a)(b)			5,220		5,176,930
U.S. Residential Opportunity Fund Trust:
Series 2015-1III, Class A, 3.72%, 1/27/35 (a)			38,011		38,018,240
Series 2015-1IV, Class A, 3.72%, 2/27/35 (a)			9,827		9,819,787

Asset-Backed Securities		Par  (000)		Value
United States (concluded)
Wachovia Asset Securitization Issuance II LLC Trust, Series 2007-HE2A, Class A, 0.31%, 7/25/37 (a)(b)	USD		3,047	$	2,693,210
Washington Mutual Asset-Backed Certificates Trust, Series 2006-HE5, Class 2A2, 0.36%, 10/25/36 (b)			25,779		13,573,250
World Financial Network Credit Card Master Trust:
Series 2012-C, Class C, 4.55%, 8/15/22			6,229		6,489,173
Series 2012-C, Class M, 3.32%, 8/15/22			2,270		2,356,292
Series 2012-D, Class B, 3.34%, 4/17/23			4,080		4,200,307
Series 2012-D, Class M, 3.09%, 4/17/23			2,525		2,585,229
					2,001,439,839
Total Asset-Backed Securities — 11.5%					3,530,857,437
Common Stocks		Shares
Austria — 0.0%
Wienerberger AG			119,467		1,880,802
Brazil — 0.0%
Tim Participacoes SA			113,913		1,863,617
Canada — 0.0%
Northern Graphite Corp. (f)			435,208		202,098
China — 0.1%
China Singyes Solar Technologies Holdings Ltd.			2,872,000		3,677,492
Huatai Securities Co. Ltd.			3,516,261		9,934,286
					13,611,778
Germany — 0.0%
Commerzbank AG (f)			71,558		914,772
Volkswagen AG, Preference Shares			24,511		5,688,494
					6,603,266
Greece — 0.0%
Hellenic Telecommunications Organization SA (f)			765,001		5,944,455
Italy — 0.0%
Intesa Sanpaolo SpA			536,118		1,946,908
Telecom Italia SpA (f)			2,232,343		2,836,893
					4,783,801
Luxembourg — 0.0%
Concrete Investment II SCA — Stapled (f)			24,318		—
Spain — 0.0%
Abengoa Yield PLC			76,549		2,397,515
Banco de Sabadell SA			750,724		1,818,397
					4,215,912
United Kingdom — 0.0%
AA PLC			194,310		1,132,380
Barclays PLC			494,932		2,028,540
Vodafone Group PLC			1,014,580		3,701,058
					6,861,978
United States — 0.3%
American Realty Capital Properties, Inc.			972,438		7,905,921
Apple Inc.			116,941		14,667,325
CBS Corp., Class B, Non-Voting Shares			166,190		9,223,545
Comcast Corp., Class A			169,984		10,222,838
Concho Resources, Inc.			12,054		1,372,468
Delta Air Lines, Inc.			244,310		10,036,255

See Notes to Financial Statements.

24 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	Percentages shown are based on Net Assets)

Common Stocks		Shares		Value
United States (concluded)
Matador Resources Co. (f)			47,584	$	1,189,600
Tesoro Corp.			30,131		2,543,358
United Continental Holdings, Inc.			123,220		6,531,892
United Rentals, Inc. (f)			130,847		11,464,814
Valero Energy Corp.			50,000		3,130,000
Vantage Drilling Co. (f)	1,556,671				294,366
Whiting Petroleum Corp.			40,177		1,349,947
The Williams Cos., Inc.			38,900		2,232,471
					82,164,800
Total Common Stocks — 0.4%					128,132,507
Corporate Bonds		Par  (000)
Australia — 0.1%
APT Pipelines Ltd., 4.20%, 3/23/25	USD		6,000		5,867,832
Drillsearch Finance Property Ltd., 6.00%, 9/01/18 (g)			2,100		2,047,500
Origin Energy Finance Ltd., 3.50%, 10/04/21	EUR		12,515		15,114,788
Transfield Services Ltd.:
8.38%, 5/15/20 (a)	USD		1,800		1,917,000
8.38%, 5/15/20			300		319,875
					25,266,995
Austria — 0.0%
Erste Group Bank AG, 5.50%, 5/26/25 (b)			1,600		1,527,200
Canada — 0.1%
MEG Energy Corp.:
6.50%, 3/15/21 (a)			2,430		2,338,875
7.00%, 3/31/24 (a)			15,576		14,933,490
					17,272,365
Cayman Islands — 0.0%
The Trafford Centre Finance Ltd., 0.90%, 7/28/35 (b)	GBP		3,400		4,774,873
China — 0.8%
Agile Property Holdings Ltd., 6.50%, 2/28/17	CNH		21,000		3,272,264
Alibaba Group Holding Ltd., 4.50%, 11/28/34	USD		5,000		4,804,155
Beijing Capital Hong Kong Ltd., 4.70%, 6/20/17	CNH		22,000		3,553,807
Billion Express Investments Ltd., 0.75%, 10/18/15 (g)	USD		4,400		4,427,500
Biostime International Holdings Ltd., 0.00%, 2/20/19 (d)(g)	HKD		20,000		2,441,447
Caifu Holdings Ltd., 8.75%, 1/24/20	USD		6,200		6,091,500
China Aoyuan Property Group Ltd.:
10.88%, 5/26/18			2,250		2,215,368
11.25%, 1/17/19			1,040		1,023,921
China Energy Reserve and Chemicals Group Overseas Co. Ltd., 5.25%, 5/11/18			7,000		7,074,200
China New Town Finance I Ltd., 5.50%, 5/06/18	CNH		36,000		5,797,862
China Singyes Solar Technologies Holdings Ltd., 5.00%, 8/08/19 (g)	CNY		4,000		636,026
China South City Holdings Ltd.:
13.50%, 10/17/17	USD		880		948,200
8.25%, 1/29/19			600		571,217
CIFI Holdings Group Co. Ltd.:
12.25%, 4/15/18			900		978,750
8.88%, 1/27/19			900		918,034
7.75%, 6/05/20			6,700		6,532,165
CITIC Ltd., 6.80%, 1/17/23			10,000		11,561,000
Cosmos Boom Investment Ltd., 0.50%, 6/23/20 (g)			7,400		7,363,000

Corporate Bonds		Par  (000)		Value
China (continued)
Country Garden Holdings Co. Ltd., 7.50%, 3/09/20	USD		10,000	$	10,318,630
Dragon Aviation Finance Luxembourg SA, 4.00%, 11/28/22			15,381		15,304,128
E-House China Holdings Ltd.:
2.75%, 12/15/18 (a)(g)			10,700		10,245,250
2.75%, 12/15/18 (g)			1,000		957,500
Evergrande Real Estate Group Ltd., 12.00%, 2/17/20			1,000		986,960
Fantasia Holdings Group Co. Ltd.:
13.75%, 9/27/17			4,100		4,245,960
10.63%, 1/23/19			8,500		7,986,243
Future Land Development Holdings Ltd., 10.25%, 7/21/19			1,020		1,042,399
Gemdale Asia Investment Ltd., 6.50%, 3/04/17	CNH		18,000		2,901,773
Gemdale International Investment Ltd., 7.13%, 11/16/17	USD		950		980,875
Greenland Global Investment Ltd., 5.88%, 7/03/24			10,000		10,135,560
Greenland Hong Kong Holdings Ltd., 5.50%, 1/23/18	CNH		26,500		4,282,216
Greentown China Holdings Ltd., 8.50%, 2/04/18	USD		1,000		1,050,000
Hang Seng Bank China Ltd., 3.25%, 7/03/17	CNH		25,000		3,990,124
HC International, Inc., 5.00%, 11/27/19 (g)	HKD		30,000		3,488,012
Hengan International Group Co. Ltd., 0.00%, 6/27/18 (d)(g)			71,000		9,754,823
Jingneng Clean Energy Investment Holdings Ltd., 4.30%, 12/23/17	CNH		25,000		4,057,951
Jingrui Holdings Ltd., 13.63%, 8/08/19	USD		1,000		982,629
Kaisa Group Holdings Ltd.:
12.88%, 9/18/17 (f)(h)			850		505,750
9.00%, 6/06/19			6,000		3,480,000
10.25%, 1/08/20			4,800		2,736,000
KWG Property Holding Ltd.:
13.25%, 3/22/17			940		1,026,950
8.25%, 8/05/19			5,830		5,814,259
Longfor Properties Co. Ltd., 6.75%, 1/29/23			1,000		984,744
Modern Land China Co. Ltd., 13.88%, 11/04/18			1,000		1,010,000
Oceanwide Real Estate International Holdings Co. Ltd., 11.75%, 9/08/19			1,000		1,055,000
Panda Funding Investment 2013, 3.95%, 12/17/16	CNH		22,000		3,518,068
Powerlong Real Estate Holdings Ltd.:
10.75%, 9/18/17			25,000		3,916,980
11.25%, 1/25/18	USD		1,000		996,800
Qihoo 360 Technology Co. Ltd.:
2.50%, 9/15/18 (g)			4,079		3,982,124
0.50%, 8/15/20 (a)(g)			6,000		5,636,250
1.75%, 8/15/21 (a)(g)			3,000		2,767,500
Redco Properties Group Ltd., 13.75%, 8/01/19			1,000		978,750
Semiconductor Manufacturing International Corp., 4.13%, 10/07/19			8,500		8,512,963
Shenzhou International Group Holdings Ltd., 0.50%, 6/18/19 (g)	HKD		6,000		894,015
SOHO China Ltd., 7.13%, 11/07/22	USD		1,000		1,012,250
Sunac China Holdings Ltd., 12.50%, 10/16/17			900		960,750
Times Property Holdings Ltd., 12.63%, 3/21/19			4,500		4,813,915
Tong Jie Ltd., 0.00%, 2/18/18 (d)(g)	HKD		48,000		6,440,002
Trillion Chance Ltd., 8.50%, 1/10/19	USD		8,500		8,351,250
Universal Number One Co. Ltd., 5.70%, 1/30/17	CNH		15,000		2,432,076

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 25

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)		Value
China (concluded)
Wanda Properties International Co. Ltd., 7.25%, 1/29/24	USD		8,000	$	8,638,152
Wanda Properties Overseas Ltd., 4.88%, 11/21/18			2,250		2,320,537
Xinyuan Real Estate Co. Ltd., 13.25%, 5/03/18			1,100		1,085,535
Yingde Gases Investment Ltd., 8.13%, 4/22/18			2,000		1,932,500
Yufu Eternity Ltd., 5.63%, 11/26/17	CNH		16,000		2,558,422
Yuzhou Properties Co. Ltd., 8.75%, 10/04/18	USD		700		708,750
					251,991,741
Cyprus — 0.0%
Aroundtown Property Holdings PLC:
3.00%, 5/05/20 (g)	EUR		7,600		9,006,667
3.00%, 12/09/21			5,100		5,288,312
					14,294,979
Czech Republic — 0.0%
CE Energy AS, 7.00%, 2/01/21			4,555		5,255,886
France — 0.6%
3AB Optique Developpement SAS, 5.63%, 4/15/19			4,500		4,740,908
Autodis SA, 6.50%, 2/01/19			106		122,606
BNP Paribas SA, 2.63%, 10/14/27 (b)			8,450		9,233,446
Cap Gemini SA:
1.75%, 7/01/20			19,000		21,335,760
2.50%, 7/01/23			24,200		27,133,203
Credit Agricole SA:
3.88%, 4/15/24 (a)	USD		8,200		8,271,725
2.63%, 3/17/27	EUR		5,425		5,524,527
Ephios Bondco PLC, 6.25%, 7/01/22			2,725		2,971,744
Faurecia, 3.13%, 6/15/22			1,392		1,485,143
Kerneos Corporate SAS, 5.75%, 3/01/21			1,613		1,834,941
Lion/Seneca France 2, 7.88%, 4/15/19			4,560		4,378,358
Numericable-SFR SAS:
5.38%, 5/15/22			11,868		13,429,530
6.00%, 5/15/22 (a)	USD		8,215		8,096,909
5.63%, 5/15/24	EUR		12,717		14,283,905
Renault SA:
3.63%, 9/19/18			15,909		19,097,717
3.13%, 3/05/21			26,740		32,068,444
SGD Group SAS, 5.63%, 5/15/19			4,035		4,560,281
Societe Generale SA, 2.63%, 2/27/25			7,600		7,894,415
THOM Europe SAS, 7.38%, 7/15/19			3,505		4,063,859
					190,527,421
Germany — 0.8%
Commerzbank AG:
7.75%, 3/16/21			37,800		50,245,833
8.13%, 9/19/23 (a)	USD		4,186		4,882,299
8.13%, 9/19/23			6,475		7,552,051
Daimler Finance North America LLC, 2.45%, 5/18/20 (a)			26,401		26,230,476
Deutsche Bank AG:
2.75%, 2/17/25	EUR		13,635		14,260,217
4.50%, 4/01/25	USD		16,500		15,708,181
Deutsche Raststaetten Gruppe IV GmbH, 6.75%, 12/30/20	EUR		1,008		1,202,435
Eurogrid GmbH, 1.88%, 6/10/25			3,600		3,983,567
FTE Verwaltungs GmbH, 9.00%, 7/15/20			2,740		3,241,795
HeidelbergCement Finance Luxembourg SA:
2.25%, 3/12/19			621		703,373
7.50%, 4/03/20			1,500		2,080,314
3.25%, 10/21/20			2,689		3,164,793
3.25%, 10/21/21			2,616		3,097,273
Pfleiderer GmbH, 7.88%, 8/01/19			2,963		3,406,535
ProGroup AG, 5.13%, 5/01/22			860		977,948
Schaeffler Finance BV, 3.25%, 5/15/25			6,475		6,817,353

Corporate Bonds		Par  (000)		Value
Germany (concluded)
Schaeffler Holding Finance BV:
5.75% (5.75% Cash or 6.50% PIK), 11/15/21 (i)	EUR		5,378	$	6,316,143
6.88% (6.88% Cash or 7.38% PIK), 8/15/18 (i)			870		1,004,935
Trionista Holdco GmbH, 5.00%, 4/30/20			911		1,048,638
Unitymedia Hessen GmbH & Co. KG/Unitymedia
NRW GmbH:
5.75%, 1/15/23			3,280		3,930,489
5.13%, 1/21/23			351		412,849
5.63%, 4/15/23			818		981,605
4.00%, 1/15/25			15,191		17,274,432
3.50%, 1/15/27			1,022		1,117,047
6.25%, 1/15/29			1,337		1,675,014
Volkswagen International Finance NV:
5.50%, 11/09/15 (a)(g)			2,100		2,894,412
5.50%, 11/09/15 (g)			30,600		42,175,723
ZF North America Capital, Inc.:
2.25%, 4/26/19			9,200		10,179,714
2.75%, 4/27/23			17,000		17,891,146
					254,456,590
Hong Kong — 0.2%
Asia View Ltd., 1.50%, 8/08/19 (g)	USD		7,000		7,420,000
China Nickel Resources Holdings Co. Ltd., 12.00%, 12/12/18 (f)(h)	HKD		8,000		206,410
China Precious Metal Resources Holdings Co. Ltd., 7.25%, 2/04/18 (g)			57,000		4,044,352
Double Rosy Ltd., 3.63%, 11/18/19	USD		13,600		13,685,000
Glorious Property Holdings Ltd., 13.25%, 3/04/18			4,800		3,384,000
Goodman HK Finance, 4.38%, 6/19/24			4,900		4,893,434
IT Ltd., 6.25%, 5/15/18	CNH		25,100		3,842,672
MIE Holdings Corp., 7.50%, 4/25/19	USD		3,200		2,416,000
Noble Group Ltd., 6.75%, 1/29/20			1,850		1,910,125
PB Issuer No. 4 Ltd., 3.25%, 7/03/21 (g)			5,513		5,457,870
REXLot Holdings Ltd., 4.50%, 4/17/19 (g)	HKD		20,000		1,702,885
Shimao Property Holdings Ltd., 8.38%, 2/10/22	USD		1,000		1,041,911
Shine Power International Ltd., 0.00%, 7/28/19 (d)(g)	HKD		60,000		7,556,553
Southwest Securities International Securities Ltd., 6.45%, 5/28/18	CNH		21,500		3,455,130
					61,016,342
India — 0.5%
AE-Rotor Holding BV, 4.97%, 3/28/18	USD		3,350		3,467,206
Food Corp. of India, 9.95%, 3/07/22	INR		4,335,000		73,213,235
Greenko Dutch BV, 8.00%, 8/01/19	USD		8,900		8,277,000
Housing Development Finance Corp. Ltd., 9.75%, 10/10/16	INR		1,000,000		15,901,241
Jaiprakash Associates Ltd., 5.75%, 9/08/17 (g)	USD		4,500		3,155,625
Lodha Developers International Ltd., 12.00%, 3/13/20			5,000		5,044,000
Mahanagar Telephone Nigam Ltd., 8.29%, 11/28/24	INR		2,750,000		43,718,004
Reliance Holding USA, Inc., 5.40%, 2/14/22	USD		1,650		1,781,726
Rolta Americas LLC, 8.88%, 7/24/19			2,899		2,391,675
Samvardhana Motherson Automotive Systems Group BV, 4.13%, 7/15/21	EUR		4,823		5,425,335
Videocon Industries Ltd., 6.75%, 12/16/15 (g)	USD		1,900		1,558,000
					163,933,047
Indonesia — 0.1%
Berau Capital Resources Pte. Ltd., 12.50%, 7/08/15			11,675		7,355,250
Berau Coal Energy Tbk PT, 7.25%, 3/13/17			6,070		3,733,050
Jababeka International BV, 7.50%, 9/24/19			950		935,216

See Notes to Financial Statements.

26 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)		Value
Indonesia (concluded)
Pratama Agung Pte. Ltd., 6.25%, 2/24/20	USD		8,200	$	7,933,402
					19,956,918
Ireland — 0.4%
Allied Irish Banks PLC, 2.75%, 4/16/19	EUR		10,450		12,043,352
Ardagh Packaging Finance PLC, 9.25%, 10/15/20			545		644,050
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc.:
6.25%, 1/31/19 (a)	USD		5,800		5,901,500
4.25%, 1/15/22	EUR		8,355		9,244,916
Bank of Ireland:
3.25%, 1/15/19			16,658		19,560,791
1.25%, 4/09/20			16,800		18,160,849
4.25%, 6/11/24 (b)			48,150		53,684,850
					119,240,308
Italy — 1.2%
Banca Monte dei Paschi di Siena SpA:
4.88%, 9/15/16			13,080		15,311,305
3.63%, 4/01/19			5,985		6,730,840
2.88%, 4/16/22			25,375		30,687,008
2.88%, 7/16/24			23,635		27,973,871
Banca Popolare dell’Emilia Romagna SC, 3.38%, 10/22/18			11,000		13,505,149
Banco Popolare SC, 3.50%, 3/14/19			24,564		28,132,295
Cerved Group SpA:
6.38%, 1/15/20			1,600		1,859,573
8.00%, 1/15/21			1,010		1,207,636
CNH Industrial Finance Europe SA, 2.75%, 3/18/19			6,579		7,369,451
FCA Capital Ireland PLC, 2.63%, 4/17/19			3,450		3,971,242
GCL Holdings SCA, 9.38%, 4/15/18			995		1,156,511
Intesa Sanpaolo SpA:
1.13%, 1/14/20			6,685		7,270,714
3.50%, 1/17/22			5,220		6,306,733
6.63%, 9/13/23			10,730		14,211,299
2.86%, 4/23/25			13,665		13,925,814
3.93%, 9/15/26			6,420		7,093,120
Meccanica Holdings USA, Inc.:
6.25%, 7/15/19 (a)	USD		3,376		3,612,320
7.38%, 7/15/39 (a)			1,740		1,870,500
6.25%, 1/15/40 (a)			6,540		6,278,400
Mediobanca SpA, 2.25%, 3/18/19	EUR		7,750		8,810,901
Officine Maccaferri SpA, 5.75%, 6/01/21			2,268		2,491,189
Rhino Bondco SpA, 7.25%, 11/15/20			4,332		5,142,010
Telecom Italia Capital SA:
6.38%, 11/15/33	USD		1,056		1,082,400
6.00%, 9/30/34			887		863,149
7.72%, 6/04/38			2,050		2,306,250
Telecom Italia Finance SA:
6.13%, 11/15/16 (g)	EUR		17,800		28,863,631
7.75%, 1/24/33			4,065		5,870,136
Telecom Italia SpA:
3.25%, 1/16/23			6,370		7,126,414
5.88%, 5/19/23	GBP		5,650		9,336,349
Twin Set-Simona Barbieri SpA, 5.89%, 7/15/19 (b)	EUR		1,393		1,385,266
UniCredit SpA:
3.25%, 1/14/21			11,640		13,811,291
6.95%, 10/31/22			23,448		30,197,907
5.75%, 10/28/25 (b)			25,870		30,942,940
Unione di Banche Italiane SCpA, 2.88%, 2/18/19			7,725		8,925,321
Wind Acquisition Finance SA, 4.00%, 7/15/20			14,463		16,083,795
					371,712,730

Corporate Bonds		Par  (000)		Value
Jamaica — 0.0%
Digicel Ltd., 6.00%, 4/15/21 (a)	USD		3,100	$	2,988,772
Japan — 0.2%
The Chugoku Electric Power Co., Inc.:
0.00%, 3/23/18 (d)(g)	JPY		200,000		1,732,238
0.00%, 3/25/20 (d)(g)			130,000		1,153,838
CYBERDYNE, Inc., 0.00%, 12/12/17 (d)(g)			240,000		2,154,676
Kawasaki Kisen Kaisha Ltd., 0.00%, 9/26/18 (d)(g)			150,000		1,334,416
LIXIL Group Corp.:
0.00%, 3/04/20 (d)(g)			110,000		887,568
0.00%, 3/04/22 (d)(g)			110,000		869,592
Maruzen Showa Unyu Co. Ltd., 0.00%, 3/29/19 (d)(g)			571,000		5,097,173
MISUMI Group, Inc., 0.00%, 10/22/18 (d)(g)	USD		5,900		7,116,875
Mitsui OSK Lines Ltd., 0.00%, 4/24/20 (d)(g)			4,100		3,684,875
Nagoya Railroad Co. Ltd., 0.00%, 12/11/24 (d)(g)	JPY		820,000		6,947,203
Park24 Co. Ltd., 0.00%, 4/26/18 (d)(g)			400,000		3,350,084
Shionogi & Co. Ltd., 0.00%, 12/17/19 (d)(g)			90,000		929,342
The Shizuoka Bank Ltd., 0.00%, 4/25/18 (d)(g)	USD		1,700		1,685,125
Softbank Corp., 4.50%, 4/15/20 (a)			1,045		1,048,919
Sumitomo Forestry Co. Ltd., 0.00%, 8/24/18 (d)(g)	JPY		350,000		3,020,693
Takashimaya Co. Ltd., 0.00%, 12/11/18 (d)(g)			30,000		254,933
Toppan Printing Co. Ltd., 0.00%, 12/19/16 (d)(g)			400,000		3,427,708
Yamaguchi Financial Group, Inc., 0.00%, 12/20/18 (d)(g)	USD		6,400		7,720,000
					52,415,258
Jersey — 0.0%
Atrium European Real Estate Ltd., 4.00%, 4/20/20	EUR		2,105		2,499,141
Luxembourg — 0.2%
Altice Financing SA, 5.25%, 2/15/23			6,013		6,737,123
Altice SA:
7.25%, 5/15/22			15,499		17,451,883
6.25%, 2/15/25			4,837		5,122,912
APERAM, 0.63%, 7/08/21 (g)	USD		5,800		6,787,740
INEOS Group Holdings SA:
6.50%, 8/15/18	EUR		433		492,868
5.75%, 2/15/19			655		737,530
Intralot Capital Luxembourg SA, 6.00%, 5/15/21			5,685		5,406,258
Intralot Finance Luxembourg SA, 9.75%, 8/15/18			9,135		10,082,332
Monitchem HoldCo 3 SA, 5.25%, 6/15/21			884		990,555
Telenet Finance V Luxembourg SCA:
6.25%, 8/15/22			392		470,345
6.75%, 8/15/24			1,380		1,682,499
Xefin Lux SCA, 3.74%, 6/01/19 (b)			5,810		6,485,970
					62,448,015
Malaysia — 0.0%
Cahaya Capital Ltd., 0.00%, 9/18/21 (d)(g)	USD		5,000		4,977,500
Mexico — 0.1%
Cemex Finance LLC, 5.25%, 4/01/21	EUR		11,311		12,927,235
Cemex SAB de CV:
4.75%, 1/11/22			4,460		4,986,908
4.38%, 3/05/23			1,741		1,865,745
					19,779,888
Netherlands — 0.4%
ABN AMRO Bank NV, 2.88%, 6/30/25 (b)			17,625		19,756,356
Achmea BV, 6.00%, 4/04/43 (b)			2,709		3,366,510

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 27

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)		Value
Netherlands (concluded)
Constellium NV, 4.63%, 5/15/21	EUR		468	$	477,402
Hema Bondco I BV:
5.24%, 6/15/19 (b)			4,470		4,096,096
6.25%, 6/15/19			5,751		5,321,557
Hema Bondco II BV, 8.50%, 12/15/19			308		200,943
LGE HoldCo VI BV, 7.13%, 5/15/24			13,626		16,874,894
NXP Semiconductors NV, 1.00%, 12/01/19 (a)(g)	USD		14,212		16,565,863
Shell International Finance BV, 4.38%, 5/11/45			20,100		19,840,147
Stork Technical Services Holdco BV, 11.00%, 8/15/17	EUR		940		1,018,618
TMF Group Holding BV, 9.88%, 12/01/19			3,936		4,686,797
UPCB Finance IV Ltd., 4.00%, 1/15/27			9,100		9,536,444
Ziggo Bond Finance BV, 4.63%, 1/15/25			9,137		10,084,539
					111,826,166
Philippines — 0.0%
Filinvest Development, 4.25%, 4/02/20	USD		5,500		5,441,150
Poland — 0.0%
Play Finance 1 SA, 6.50%, 8/01/19	EUR		3,675		4,270,265
Play Finance 2 SA, 5.25%, 2/01/19			5,050		5,781,450
					10,051,715
Portugal — 0.2%
Caixa Geral de Depositos SA:
3.00%, 1/15/19			2,100		2,546,863
1.00%, 1/27/22			13,200		14,632,902
Novo Banco SA:
2.63%, 5/08/17			6,000		6,505,162
4.75%, 1/15/18			9,500		10,742,505
4.00%, 1/21/19			14,000		15,530,826
					49,958,258
Russia — 0.0%
ALROSA Finance SA, 7.75%, 11/03/20 (a)	USD		5,000		5,225,000
Singapore — 0.1%
Global A&T Electronics Ltd., 10.00%, 2/01/19			9,190		8,271,000
Olam International Ltd., 6.00%, 10/15/16 (g)			1,700		1,740,375
OSIM International Ltd., 0.00%, 9/18/19 (d)(g)	SGD		7,500		5,262,279
United Overseas Bank Ltd., 3.75%, 9/19/24 (b)	USD		6,050		6,168,035
Yanlord Land Group Ltd., 10.63%, 3/29/18			950		994,954
					22,436,643
Slovenia — 0.0%
United Group BV, 7.88%, 11/15/20	EUR		1,825		2,146,752
South Korea — 0.0%
Hyundai Heavy Industries Co. Ltd., 0.00%, 6/29/20 (d)(g)	USD		2,400		2,424,000
Woori Bank, 4.75%, 4/30/24			10,000		10,370,260
					12,794,260
Spain — 0.7%
Abengoa Finance SAU, 6.00%, 3/31/21	EUR		14,380		14,829,525
Abengoa Greenfield SA, 5.50%, 10/01/19			1,710		1,753,885
Abengoa Yield PLC, 7.00%, 11/15/19 (a)	USD		1,022		1,052,660
Aldesa Financial Services SA, 7.25%, 4/01/21	EUR		878		887,319
Bankia SA:
3.50%, 1/17/19			20,200		23,449,818
4.00%, 5/22/24 (b)			56,600		61,272,601
Bilbao Luxembourg SA, 10.69% (10.50% Cash or 11.25% PIK), 12/01/18 (i)			5,853		6,976,562
BPE Financiaciones SA, 2.00%, 2/03/20			47,700		51,858,022
CaixaBank SA:
4.50%, 11/22/16 (g)			6,500		6,579,857

Corporate Bonds		Par  (000)		Value
Spain (concluded)
5.00%, 11/14/23 (b)	EUR		7,200	$	8,534,783
Cirsa Funding Luxembourg SA, 5.88%, 5/15/23			11,372		12,235,632
Obrascon Huarte Lain SA, 5.50%, 3/15/23			8,351		7,634,306
PortAventura Entertainment Barcelona BV, 7.25%, 12/01/20			8,750		10,162,088
Santander Issuances SAU, 2.50%, 3/18/25			6,600		6,867,832
Telefonica SA, 6.00%, 7/24/17 (g)			8,000		10,780,619
					224,875,509
Sweden — 0.0%
Verisure Holding AB, 8.75%, 12/01/18			1,000		1,180,628
Switzerland — 0.4%
Credit Suisse AG:
6.50%, 8/08/23	USD		34,470		37,701,563
5.75%, 9/18/25 (b)	EUR		1,580		1,954,842
Credit Suisse Group Funding Guernsey Ltd.:
1.25%, 4/14/22			17,020		17,990,940
4.88%, 5/15/45 (a)	USD		21,596		20,779,088
gategroup Finance Luxembourg SA, 6.75%, 3/01/19	EUR		1,817		2,117,008
Selecta Group BV, 6.50%, 6/15/20			1,333		1,430,369
UBS AG:
4.75%, 5/22/23 (b)	USD		3,860		3,890,741
5.13%, 5/15/24			21,872		21,621,544
4.75%, 2/12/26 (b)	EUR		10,740		12,692,832
					120,178,927
Taiwan — 0.1%
Advanced Semiconductor Engineering, Inc., 0.00%, 3/27/18 (d)(g)	USD		5,200		5,232,500
Far Eastern International Bank, 0.00%, 2/07/18 (d)(g)			2,600		2,626,000
Formosa Group Cayman Ltd., 3.38%, 4/22/25			8,000		7,606,400
Neo Solar Power Corp., 0.00%, 7/18/17 (d)(g)			5,000		4,685,000
TPK Holding Co. Ltd., 0.00%, 4/08/20 (d)(g)			10,750		10,535,000
					30,684,900
Thailand — 0.1%
Bangkok Dusit Medical Services PCL, 0.00%, 9/18/19 (d)(g)	THB		276,000		8,510,725
CP Foods Holdings Ltd., 0.50%, 1/15/19 (g)	USD		6,400		6,752,000
					15,262,725
Turkey — 0.0%
Turkish Airlines Pass-Through Trust, Series 2015-1, Class A, 4.20%, 3/15/27 (a)			8,792		8,748,040
United Arab Emirates — 0.0%
Doric Nimrod Air Alpha Pass-Through Trust, Series 2013-1, Class A, 5.25%, 5/30/25 (a)			7,318		7,757,270
United Kingdom — 1.9%
AA Bond Co. Ltd.:
5.50%, 7/31/43	GBP		11,525		17,999,890
9.50%, 7/31/43			12,000		20,551,819
Abbey National Treasury Services PLC, 2.38%, 3/16/20	USD		34,355		34,238,330
Annington Finance No. 4 PLC, 1.54%, 1/10/23 (b)	GBP		994		1,561,184
Annington Finance No. 5 PLC, 13.00% (13.00% Cash or 13.50% PIK), 1/15/23 (i)			1,063		2,087,381
Bakkavor Finance 2 PLC, 8.25%, 2/15/18			578		944,870
Barclays Bank PLC, 7.63%, 11/21/22	USD		16,945		19,296,966
Boparan Finance PLC:
4.38%, 7/15/21	EUR		391		398,637
5.50%, 7/15/21	GBP		2,418		3,448,777
Brakes Capital, 7.13%, 12/15/18			3,150		5,073,339

See Notes to Financial Statements.

28 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)		Value
United Kingdom (concluded)
British Sky Broadcasting Group PLC, 1.50%, 9/15/21	EUR		25,450	$	28,253,478
Care UK Health & Social Care PLC, 5.57%, 7/15/19 (b)	GBP		4,961		7,561,074
Centrica PLC, 4.38%, 3/13/29			6,125		10,082,036
Debenhams PLC, 5.25%, 7/15/21			793		1,227,063
EC Finance PLC, 5.13%, 7/15/21	EUR		2,875		3,332,574
Eco-Bat Finance PLC, 7.75%, 2/15/17			898		975,108
Enterprise Inns PLC, 6.00%, 10/06/23	GBP		6,106		9,546,021
Findus Bondco SA, 9.13%, 7/01/18	EUR		885		1,033,510
Gala Group Finance PLC, 8.88%, 9/01/18	GBP		2,700		4,443,860
Greene King Finance PLC, Series A5, 3.07%, 12/15/33 (b)			28,654		44,977,718
House of Fraser Funding PLC, 8.88%, 8/15/18			1,033		1,693,046
HSBC Holdings PLC, 3.00%, 6/30/25	EUR		25,975		28,857,392
Hydra Dutch Holdings 2 BV, 5.51%, 4/15/19 (b)			1,087		1,127,985
IDH Finance PLC:
6.00%, 12/01/18	GBP		3,168		5,037,421
6.00%, 12/01/18 (a)			700		1,113,066
International Game Technology PLC:
4.13%, 2/15/20	EUR		591		652,289
6.25%, 2/15/22 (a)	USD		4,100		3,915,500
4.75%, 2/15/23	EUR		1,400		1,503,855
6.50%, 2/15/25 (a)	USD		1,650		1,526,250
Jaguar Land Rover Automotive PLC, 5.00%, 2/15/22	GBP		343		553,950
Mitchells & Butlers Finance PLC, 2.70%, 6/15/36 (b)			3,072		4,320,030
New Look Secured Issuer PLC, 6.50%, 7/01/22			5,680		8,719,376
Pension Insurance Corp. PLC, 6.50%, 7/03/24			1,950		3,050,339
Punch Taverns Finance B Ltd.:
7.37%, 9/30/21			7,699		12,701,330
Series A6, 5.94%, 9/30/22			9,308		14,332,454
Series A7, 5.27%, 3/30/24			8,372		12,431,861
Punch Taverns Finance PLC:
0.57%, 7/15/21 (b)			4,758		6,794,054
7.27%, 10/15/26			5,387		9,417,199
7.27%, 10/15/26 (a)			1,825		3,190,108
Series M3, 6.07%, 10/15/27 (a)(b)			7,866		11,679,608
Silk Bidco AS, 7.50%, 2/01/22	EUR		10,820		12,319,032
Spirit Issuer PLC:
Series A2, 3.28%, 12/28/31 (b)	GBP		14,430		21,879,438
Series A6, 2.38%, 12/28/36 (b)			7,014		10,607,402
Standard Chartered PLC, 2.25%, 4/17/20 (a)	USD		26,714		26,238,758
Stonegate Pub Co. Financing PLC:
5.32%, 4/15/19 (b)	GBP		2,205		3,494,899
5.75%, 4/15/19			6,395		10,048,080
The Unique Pub Finance Co. PLC:
Series A3, 6.54%, 3/30/21			1,050		1,736,235
Series A4, 5.66%, 6/30/27			20,614		33,037,774
Series M, 7.40%, 3/28/24			16,689		26,746,873
Series N, 6.46%, 3/30/32			27,756		38,813,654
Virgin Media Finance PLC, 6.38%, 4/15/23 (a)	USD		3,000		3,101,250
Virgin Media Secured Finance PLC:
6.00%, 4/15/21	GBP		3,218		5,257,683
6.25%, 3/28/29			3,574		5,805,139
Viridian Group FundCo II Ltd., 7.50%, 3/01/20	EUR		3,716		4,141,755
Vougeot Bidco PLC, 7.88%, 7/15/20	GBP		4,816		8,021,420
Voyage Care Bondco PLC:
6.50%, 8/01/18			1,000		1,618,377
11.00%, 2/01/19			5,000		8,328,200
					570,846,717

Corporate Bonds		Par  (000)		Value
United States — 5.6%
AbbVie, Inc.:
2.50%, 5/14/20	USD		44,870	$	44,409,679
4.50%, 5/14/35			23,314		22,808,156
Actavis Funding SCS, 3.00%, 3/12/20			39,994		40,084,706
The ADT Corp., 4.88%, 7/15/42			4,501		3,443,265
Ally Financial, Inc.:
3.50%, 1/27/19			10,100		10,024,250
4.13%, 3/30/20			5,400		5,389,848
8.00%, 11/01/31			2,600		3,113,500
American Airlines Group, Inc., 4.63%, 3/01/20 (a)			10,610		10,265,175
American Airlines Pass-Through Trust, 6.00%, 1/15/17 (a)			40,210		41,114,725
Amgen, Inc.:
2.13%, 5/01/20			18,318		17,936,857
3.13%, 5/01/25			18,694		17,687,160
4.40%, 5/01/45			9,401		8,662,909
Anthem, Inc., 4.65%, 8/15/44			7,934		7,256,793
Apple Inc., 2.00%, 5/06/20			91,560		91,029,318
ARC Properties Operating Partnership LP, 2.00%, 2/06/17			4,580		4,442,600
AT&T Inc.:
2.45%, 6/30/20			44,516		43,637,655
3.00%, 6/30/22			58,111		56,109,890
4.75%, 5/15/46			7,917		7,204,264
Atwood Oceanics, Inc., 6.50%, 2/01/20			825		796,125
Bank of America Corp.:
2.25%, 4/21/20			65,516		64,323,609
4.00%, 4/01/24			15,689		15,964,734
4.00%, 1/22/25			38,117		37,137,164
3.95%, 4/21/25			61,102		58,852,835
Baxalta, Inc., 4.00%, 6/23/25 (a)			15,893		15,774,804
Belden, Inc., 5.50%, 4/15/23	EUR		7,181		8,276,347
Boston Scientific Corp.:
2.85%, 5/15/20	USD		24,186		24,015,368
3.85%, 5/15/25			18,784		18,225,195
Brightstar Corp., 7.25%, 8/01/18 (a)			7,263		7,680,623
Calpine Corp., 5.38%, 1/15/23			8,090		7,948,425
CCO Holdings LLC/CCO Holdings Capital Corp.:
7.38%, 6/01/20			8,032		8,483,800
5.25%, 9/30/22			8,115		7,993,275
Ceridian HCM Holding, Inc., 11.00%, 3/15/21 (a)			1,940		2,051,550
Chesapeake Energy Corp.:
4.88%, 4/15/22			2,000		1,735,000
5.75%, 3/15/23			3,000		2,715,000
CHS/Community Health Systems, Inc., 8.00%, 11/15/19			5,622		5,924,183
CIT Group, Inc.:
4.25%, 8/15/17			4,819		4,891,285
5.50%, 2/15/19 (a)			1,100		1,146,750
Comcast Corp.:
3.38%, 8/15/25			15,955		15,744,506
4.40%, 8/15/35			22,929		22,767,855
4.60%, 8/15/45			13,017		12,905,262
CONSOL Energy, Inc., 5.88%, 4/15/22			5,660		4,811,000
Continental Resources, Inc., 4.90%, 6/01/44			3,900		3,284,607
Covanta Holding Corp., 6.38%, 10/01/22			1,610		1,684,463
Crown Castle International Corp., 5.25%, 1/15/23			1,735		1,747,579
CrownRock LP/CrownRock Finance, Inc., 7.13%, 4/15/21 (a)			1,805		1,868,175
DaVita HealthCare Partners, Inc., 5.13%, 7/15/24			5,685		5,589,066
DISH DBS Corp., 5.88%, 7/15/22			8,105		7,942,900

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 29

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds		Par  (000)		Value
United States (continued)
DPL, Inc., 6.50%, 10/15/16	USD		429	$	446,160
Energy Transfer Partners LP, 4.90%, 3/15/35			12,377		11,167,878
Exelon Corp., 2.85%, 6/15/20			6,974		7,014,470
FedEx Corp., 3.90%, 2/01/35			5,435		5,024,571
First Data Corp.:
7.38%, 6/15/19 (a)			19,619		20,393,951
8.88%, 8/15/20 (a)			3,150		3,311,437
Gates Global LLC/Gates Global Co., 5.75%, 7/15/22	EUR		4,405		4,518,639
General Motors Co., 4.88%, 10/02/23	USD		3,520		3,711,041
General Motors Financial Co., Inc.:
2.75%, 5/15/16			1,069		1,081,772
2.63%, 7/10/17			19,160		19,368,499
3.15%, 1/15/20			7,625		7,660,731
The Goldman Sachs Group, Inc.:
2.60%, 4/23/20			28,747		28,602,949
3.75%, 5/22/25			58,437		57,668,086
5.15%, 5/22/45			7,531		7,265,367
Gulfmark Offshore, Inc., 6.38%, 3/15/22			705		526,988
Harman Finance International SCA, 2.00%, 5/27/22	EUR		4,925		5,376,721
HCA, Inc., 8.00%, 10/01/18	USD		12,048		13,975,680
HD Supply, Inc., 11.00%, 4/15/20			8,810		9,804,649
Hologic, Inc., 6.25%, 8/01/20			4,519		4,674,454
HSBC USA, Inc., 2.35%, 3/05/20			54,469		54,023,607
Icahn Enterprises LP/Icahn Enterprises Finance Corp.:
3.50%, 3/15/17			975		981,094
4.88%, 3/15/19			4,111		4,141,833
6.00%, 8/01/20			7,420		7,661,150
Illinois Tool Works, Inc., 1.25%, 5/22/23	EUR		6,125		6,613,987
Iron Mountain, Inc., 5.75%, 8/15/24	USD		2,000		2,001,250
iStar Financial, Inc., 4.00%, 11/01/17			1,996		1,961,070
Jefferies Finance LLC/JFIN Co-Issuer Corp., 7.38%, 4/01/20 (a)			1,850		1,817,625
JPMorgan Chase & Co., 2.75%, 6/23/20			52,644		52,744,318
K. Hovnanian Enterprises, Inc., 7.25%, 10/15/20 (a)			2,655		2,708,100
Kinder Morgan Energy Partners LP:
5.63%, 9/01/41			12,730		11,938,143
4.70%, 11/01/42			5,259		4,392,858
Kinder Morgan, Inc., 3.05%, 12/01/19			2,667		2,664,048
Laredo Petroleum, Inc., 7.38%, 5/01/22			735		773,587
Lennar Corp., 2.75%, 12/15/20 (a)(g)			9,000		20,638,125
Levi Strauss & Co., 6.88%, 5/01/22			1,161		1,239,367
Linn Energy LLC/Linn Energy Finance Corp.:
6.25%, 11/01/19			3,096		2,422,620
8.63%, 4/15/20			294		241,142
Massachusetts Institute of Technology, 3.96%, 7/01/38			8,375		8,342,069
The McClatchy Co., 9.00%, 12/15/22			5,000		4,762,500
McDonald’s Corp., 1.88%, 5/26/27	EUR		7,900		8,442,646
MDC Partners, Inc., 6.75%, 4/01/20 (a)	USD		1,190		1,185,537
Medtronic, Inc., 4.63%, 3/15/45 (a)			23,698		23,990,647
MetroPCS Wireless, Inc., 6.63%, 11/15/20			2,180		2,267,200
Micron Technology, Inc.:
5.63%, 1/15/26 (a)			5,300		4,895,875
3.00%, 11/15/43 (g)			31,000		27,996,875
Morgan Stanley:
2.80%, 6/16/20			71,892		71,968,421
4.30%, 1/27/45			17,806		16,637,873
NES Rentals Holdings, Inc., 7.88%, 5/01/18 (a)			1,847		1,865,470
Novelis, Inc., 8.75%, 12/15/20			1,740		1,840,050
NRG Energy, Inc., 6.25%, 7/15/22			5,622		5,706,330

Corporate Bonds		Par  (000)		Value
United States (continued)
Nuance Communications, Inc., 5.38%, 8/15/20 (a)	USD		4,525	$	4,547,625
Oracle Corp.:
3.90%, 5/15/35			7,496		6,971,220
4.13%, 5/15/45			7,567		7,016,894
PSPC Escrow Corp., 6.00%, 1/02/23	EUR		3,130		3,525,778
QUALCOMM, Inc., 4.65%, 5/20/35	USD		17,228		16,676,738
Realogy Group LLC, 7.63%, 1/15/20 (a)			2,709		2,868,831
Reynolds American, Inc.:
3.25%, 6/12/20			8,068		8,172,093
4.45%, 6/12/25			1,552		1,581,210
Reynolds Group Issuer, Inc.:
9.88%, 8/15/19			461		484,050
6.88%, 2/15/21			1,305		1,360,463
Rosetta Resources, Inc., 5.63%, 5/01/21			1,713		1,820,063
The Ryland Group, Inc., 1.63%, 5/15/18 (g)			16,000		24,270,000
Sabine Pass Liquefaction LLC:
5.63%, 2/01/21			3,614		3,686,280
5.63%, 4/15/23			947		943,742
5.75%, 5/15/24			8,215		8,184,194
Sabine Pass LNG LP, 7.50%, 11/30/16			8,575		9,025,273
Safway Group Holding LLC/Safway Finance Corp., 7.00%, 5/15/18 (a)			1,172		1,198,124
Sealed Air Corp., 4.50%, 9/15/23	EUR		2,450		2,764,847
Service Corp. International, 7.00%, 6/15/17	USD		5,623		6,044,725
SESI LLC, 7.13%, 12/15/21			7,261		7,696,660
Sprint Communications, Inc., 9.00%, 11/15/18 (a)			4,105		4,635,612
Sprint Corp., 7.88%, 9/15/23			24,060		23,465,718
SunGard Data Systems, Inc., 6.63%, 11/01/19			1,900		1,961,750
TA MFG Ltd., 3.63%, 4/15/23	EUR		1,300		1,410,086
Taylor Morrison Communities, Inc./Monarch Communities, Inc., 5.25%, 4/15/21 (a)	USD		706		695,410
Tenet Healthcare Corp.:
6.00%, 10/01/20			3,781		4,031,491
8.13%, 4/01/22			7,264		7,943,184
Time Warner Cable, Inc.:
5.00%, 2/01/20			6,218		6,713,034
4.13%, 2/15/21			16,853		17,399,796
4.00%, 9/01/21			14,322		14,703,481
T-Mobile USA, Inc.:
5.25%, 9/01/18			5,622		5,776,605
6.63%, 4/28/21			3,160		3,278,500
6.73%, 4/28/22			5,680		5,921,400
TransDigm, Inc., 6.00%, 7/15/22			8,120		8,018,500
Transocean, Inc., 6.50%, 11/15/20			3,300		3,056,625
United Airlines Pass-Through Trust, Series 2013-1, Class B, 5.38%, 2/15/23			23,463		24,577,557
United Rentals North America, Inc.:
7.63%, 4/15/22			1,454		1,573,955
5.50%, 7/15/25			5,252		5,074,745
Valeant Pharmaceuticals International, Inc.:
6.75%, 8/15/21 (a)			4,362		4,547,385
4.50%, 5/15/23	EUR		21,280		22,974,372
6.13%, 4/15/25 (a)	USD		23,138		23,803,217
VWR Funding, Inc., 7.25%, 9/15/17			6,870		7,101,863
Wells Fargo & Co., 3.90%, 5/01/45			19,245		17,319,595
Williams Partners LP/ACMP Finance Corp.:
6.13%, 7/15/22			1,635		1,737,187
4.88%, 5/15/23			1,060		1,045,595

See Notes to Financial Statements.

30 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Corporate Bonds	Par  (000)			Value
United States (concluded)
XPO Logistics, Inc.:
5.75%, 6/15/21		EUR	2,650	$	2,907,242
6.50%, 6/15/22 (a)		USD	2,925		2,862,844
Zayo Group LLC/Zayo Capital, Inc., 10.13%, 7/01/20			972		1,085,491
					1,721,822,745
Vietnam — 0.1%
Vietnam Joint Stock Commercial Bank for Industry and Trade, 8.00%, 5/17/17			2,550		2,652,000
Vingroup JSC:
5.00%, 4/03/17 (g)			4,900		6,370,000
11.63%, 5/07/18			7,030		7,240,900
					16,262,900
Total Corporate Bonds — 14.9%					4,583,836,274
Floating Rate Loan Interests (b)
Austria — 0.0%
Constantinople Luxembourg I S.à r.l.:
Facility B1 (EUR), 4.75%, 4/30/22		EUR	3,290		3,680,815
Facility B2 (EUR), 4.75%, 4/30/22			491		549,474
					4,230,289
China — 0.0%
Kunlun Energy Co. Ltd., 5/13/25		USD	10,000		9,675,200
Denmark — 0.0%
Nassa Midco AS, Facility B (EUR), 4.25%, 7/09/21		EUR	8,700		9,664,199
France — 0.0%
Numericable Group SA, Euro Denominated Tranche B-1 Loan, 4.50%, 5/21/20			6,050		6,744,409
Vivarte, Bond, 4.00%, 10/29/19			3,200		3,665,634
					10,410,043
Germany — 0.1%
Auris Luxembourg III S.à r.l. (AKA Siemens Audiology), Facility B1 (EUR), 5.50%, 1/17/22			1,117		1,248,240
Douglas Holding AG, Term Loan B, 5.00%, 6/24/22			7,189		7,974,598
PAW Luxco II S.à r.l. (Jack Wolfskin), Facility B, 5.00%, 7/29/18			4,461		4,452,208
Schaeffler AG (FKA named INA Beteiligungsge-sellschaft mit beschränkter Haftung), Facility B-EUR, 4.25%, 5/15/20			2,985		3,318,915
Springer SBM Two GmbH, Term Loan B-8, 4.75%, 8/14/20			3,880		4,328,658
Xella International SA, Facility G, 3.75%, 3/31/19			4,390		4,894,201
					26,216,820
Italy — 0.1%
Sit SpA, Medium Term Facility B, 5.52%, 4/30/20			12,000		13,110,660
Luxembourg — 0.2%
Altice Financing SA, Euro Denominated Tranche Loan, 5.25%, 2/04/22			6,795		7,581,707
Antelope Bidco SA, Facility B (First Lien), 5.00%, 4/01/22			3,180		3,496,483
BSN Medical Luxembourg Finance Holding S.àr.l., Term Loan C2, 3.00%, 8/28/19			3,150		3,501,916
ConvaTec, Inc., Euro Term Loan, 3.25%, 12/22/16			2,840		3,163,014
INEOS Finance PLC, 2020 Euro Term Loan, 4.00%, 12/15/20			9,426		10,328,851

Floating Rate Loan Interests (b)	Par  (000)			Value
Luxembourg (concluded)
Kleopatra Holdings 2 SCA:
Initial Erste Euro Term Loan, 5.00%, 4/28/20		EUR	1,828	$	2,039,451
Initial GmbH Euro Term Loan, 5.00%, 4/28/20			1,617		1,804,824
SIG Combibloc Holdings SCA (FKA Onex Wizard Acquisition Co. II SCA), Initial Euro Term Loan, 4.25%, 3/11/22			17,207		19,181,394
					51,097,640
Netherlands — 0.2%
Action Holding BV (FKA Peer Holdings BV), Term B (A2), 4.50%, 1/13/21			3,472		3,863,379
Amaya Holdings BV, Initial Term B Loan (Second Lien), 8.00%, 8/01/22		USD	22,963		23,135,223
Charger OpCo BV, Term B-1 EUR Loan, 0.00%, 7/23/21		EUR	7,870		8,786,696
Maxeda DIY Holding BV, Facility D1, 5.00%, 6/27/17			169		179,440
Yellow Maple Holding BV, Term Loan B (First Lien), 4.00%, 9/17/21			3,780		4,208,873
Ziggo BV:
EUR B1 Facility, 3.75%, 1/15/22			4,189		4,636,069
EUR B2 Facility, 3.75%, 1/15/22			2,699		2,986,621
EUR B3 Facility, 3.75%, 1/15/22			7,583		8,391,364
					56,187,665
Spain — 0.1%
Car Rentals Subsidiary, S.L.U. (aka Goldcar), Facility B, 6.50%, 6/18/20			13,590		14,734,191
United Kingdom — 0.1%
Bestway UK Holdco Ltd., Facility B, 5.26%, 10/06/21		GBP	4,570		7,192,558
Iglo Foods Holdco Ltd. (FKA BEIG Holdco Ltd.), Facility C2, 4.76%, 6/30/20			1,707		2,678,039
Nelson Bidco Ltd.:
Initial Term Loan (First Lien), 5.32% - 5.43%, 12/10/21			7,925		12,436,787
Initial Term Loan (Second Lien), 8.25%, 12/09/22			3,980		6,288,743
Saga Mid Co. Ltd., Facility A, 2.76%, 4/25/19			2,946		4,479,086
Virgin Media Investment Holdings Ltd., E Facility, 4.25%, 6/30/23			3,295		5,138,407
Yellow Maple Holding BV, Facility B3, 5.07%, 9/23/21			2,160		3,388,414
					41,602,034
United States — 1.9%
300 N Sepulveda Owner LLC, Term B Note, 10.00%, 9/01/15		USD	4,882		4,881,552
Accudyne Industries Borrower SCA/Accudyne Industries LLC (AKA Hamilton Sundstrand), Refinancing Term Loan, 4.00%, 12/13/19			7,172		6,909,922
Allnex (Luxembourg) & Cy SCA, Tranche B-1 Term Loan, 4.50%, 10/03/19			635		635,357
Allnex USA, Inc., Tranche B-2 Term Loan, 4.50%, 10/03/19			330		329,656
American Capital Ltd. (FKA American Capital Strategies Ltd.), Term Loan B, 3.50%, 8/22/17			3,935		3,922,232
A-R HHC Orlando Convention Hotel LLC, Mezzanine Loan, 6.44%, 8/07/21			15,000		15,000,000
Ardagh Holdings USA, Inc. (Ardagh Packaging Finance SA), New Term Loan, 4.00%, 12/17/19			2,212		2,204,391

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 201531 31

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Floating Rate Loan Interests (b)	Par  (000)			Value
United States (continued)
Ascend Performance Materials Operations LLC, Term B Loan, 6.75%, 4/10/18		USD	2,298	$	1,953,141
Avago Technologies Cayman Ltd. (Avago Technologies Holdings Luxembourg S.à r.l.), Term Loan, 3.75%, 5/06/21			4,096		4,099,409
Axalta Coating Systems Dutch Holding B BV (Axalta Coating Systems U.S. Holdings, Inc.), Refinanced Term B Loan, 3.75%, 2/01/20			2,234		2,229,696
BJ’s Wholesale Club, Inc., New 2013 (November) Replacement Loan (First Lien), 4.50%, 9/26/19			978		976,557
BRE/Lauderdale Grande LLC, Mezzanine Term Loan, 5.93%, 7/09/19			7,000		7,000,000
Caesars Entertainment Resort Properties LLC, Term B Loan, 7.00%, 10/11/20			21,828		19,743,064
CHS/Community Health Systems, Inc.:
Incremental 2019 Term G Loan, 3.75%, 12/31/19			9,989		9,985,994
Incremental 2021 Term H Loan, 4.00%, 1/27/21			18,379		18,398,038
CSC Holdings LLC (FKA CSC Holdings, Inc. (Cablevision)), Term B Loan, 2.69%, 4/17/20			8,041		7,948,510
Dallas Design District, Mezzanine, 6.88%, 11/25/16			9,000		9,000,000
Dell International LLC:
Term B-2 Loan, 4.00%, 4/29/20			6,050		6,048,911
Term C Loan, 3.75%, 10/29/18			9,190		9,179,282
Emdeon, Inc., Term B-2 Loan, 3.75%, 11/02/18			15,320		15,285,581
FCA U.S. LLC (FKA Chrysler Group LLC), Term Loan B, 3.50%, 5/24/17			21,846		21,789,199
First Data Corp.:
2018 New Dollar Term Loan, 3.69%, 3/23/18			25,056		24,952,713
2018B Second New Term Loan, 3.69%, 9/24/18			1,220		1,215,645
Freescale Semiconductor, Inc.:
Tranche B-4 Term Loan, 4.25%, 2/28/20			23,110		23,116,735
Tranche B5 Term Loan, 5.00%, 1/15/21			8,097		8,118,737
Gates Global LLC, Initial Dollar Term Loan, 4.25%, 7/06/21			22,551		22,184,983
HD Supply, Inc., Term Loan 2014, 4.00%, 6/28/18			33,652		33,576,143
The Hertz Corp.:
Tranche B-1 Term Loan, 4.00%, 3/11/18			3,342		3,338,401
Tranche B-2 Term Loan, 3.50%, 3/11/18			4,810		4,777,924
Hilton Worldwide Finance LLC, Initial Term Loan, 3.50%, 10/26/20			23,418		23,422,106
Iasis Healthcare LLC, Term B-2 Loan, 4.50%, 5/03/18			11,593		11,594,870
Intelsat Jackson Holdings SA, Tranche B-2 Term Loan, 3.75%, 6/30/19			24,748		24,536,660
Level 3 Financing, Inc.:
Tranche B 2020 Term Loan, 4.00%, 1/15/20			14,962		14,957,616
Tranche B-II 2022 Term Loan, 3.50%, 5/31/22			4,750		4,713,377
Novelis, Inc., Initial Term Loan, 4.00%, 6/02/22			9,635		9,582,186
Numericable U.S. LLC:
Dollar Denominated Tranche B-1 Loan, 4.50%, 5/21/20			10,122		10,143,873
Dollar Denominated Tranche B-2 Loan, 4.50%, 5/21/20			8,760		8,779,185

Floating Rate Loan Interests (b)	Par  (000)			Value
United States (concluded)
Offshore Group Investment Ltd. (Vantage Delaware Holdings LLC), Term Loan, 5.00%, 10/25/17		USD	1,308	$	910,616
Par Pharmaceutical Cos., Inc. (Par Pharmaceutical, Inc.), Term B-2 Loan, 4.00%, 9/30/19			979		977,510
Pharmaceutical Product Development, Inc. (Jaguar Holdings LLC), 2013 Term Loan, 4.00%, 12/05/18			965		962,991
PT MNC Sky Vision Tbk, Term Loan Facility, 4.54%, 11/19/16			11,000		10,835,000
Realogy Group LLC (FKA Realogy Corp.):
Extended Synthetic Commitment, 0.04% - 4.40%, 10/10/16			96		95,534
Initial Term B Loan 2014, 3.75%, 3/05/20			948		945,619
Reynolds Group Holdings, Inc., Incremental U.S. Term Loan, 4.50%, 12/01/18			11,370		11,400,813
Rite Aid Corp.:
Tranche 1 Term Loan (Second Lien), 5.75%, 8/21/20			360		363,377
Tranche 2 Term Loan (Second Lien), 4.88%, 6/21/21			16,280		16,274,953
Spectrum Brands, Inc., Euro Term Loan, 2.75%, 6/23/22		EUR	2,740		3,045,775
Spin Holdco, Inc., Initial Term Loan (First Lien), 4.25%, 11/14/19		USD	18,749		18,661,218
Staples, Inc., Term Loan (First Lien), 2.75%, 4/23/21			23,900		23,845,269
Station Casinos LLC, B Term Loan, 4.25%, 3/02/20			24,674		24,642,742
SunGard Data Systems, Inc. (Solar Capital Corp.), Tranche E Term Loan, 4.00%, 3/08/20			850		849,100
Telenet International Finance SA, Term Loan AA, 3.50%, 5/01/23			7,030		6,976,150
Thor 680 Madison Ave Mezz LLC, Loan, 5.40%, 8/09/16			15,000		15,000,000
Trans Union LLC, 2015 Term B-2 Loan, 3.75%, 4/09/21			17,333		17,167,534
Univision Communications, Inc.:
2013 Incremental Term Loan, 4.00%, 3/01/20			7,700		7,636,427
Replacement First-Lien Term Loan, 4.00%, 3/01/20			5,179		5,132,603
Virgin Media Investment Holdings Ltd., F Facility, 3.50%, 6/30/23			1,730		1,711,695
Walton Portland Mezz Holdings VI LLC, Loan, 6.94%, 7/08/16			7,200		7,200,000
Zayo Group LLC (Zayo Capital, Inc.), 2021 Term Loan, 3.75%, 5/06/21			17,370		17,208,113
					588,374,685
Total Floating Rate Loan Interests — 2.7%					825,303,426

See Notes to Financial Statements.

32 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Foreign Agency Obligations	Par  (000)		Value
Argentina — 0.1%
YPF SA, 8.50%, 7/28/25 (a)	USD	28,156	$	27,874,440
Brazil — 0.1%
Petrobras Global Finance BV:
5.88%, 3/01/18		5,000		5,100,000
6.25%, 12/14/26	GBP	2,860		3,984,596
5.38%, 10/01/29		1,310		1,665,761
6.63%, 1/16/34		3,525		4,704,383
7.25%, 3/17/44	USD	7,827		7,266,274
				22,721,014
China — 0.1%
Bluestar Finance Holdings Ltd., 4.38%, 6/11/20		7,500		7,511,250
CDBL Funding 1, 4.25%, 12/02/24		12,950		12,648,265
China Construction Bank Corp., 3.88%, 5/13/25 (b)		8,000		7,966,800
CNOOC Finance 2012 Ltd., 5.00%, 5/02/42		4,065		4,260,140
COSCO Finance 2011 Ltd., 4.00%, 12/03/22		3,650		3,635,615
Sinopec Group Overseas Development 2015 Ltd., 4.10%, 4/26/45		5,500		5,056,700
				41,078,770
Colombia — 0.0%
Ecopetrol SA, 7.38%, 9/18/43		5,000		5,241,000
Germany — 0.1%
HSH Nordbank AG:
0.79%, 2/14/17 (b)	EUR	18,081		14,692,904
0.83%, 2/14/17 (b)		6,000		4,883,052
				19,575,956
Hong Kong — 0.0%
King Power Capital Ltd., 5.63%, 11/03/24	USD	5,816		6,064,343
India — 0.0%
Power Grid Corp. of India Ltd.:
9.30%, 9/04/24	INR	240,000		3,944,619
9.30%, 9/04/29		200,000		3,322,173
				7,266,792
Indonesia — 0.0%
Pelabuhan Indonesia II PT:
4.25%, 5/05/25	USD	6,000		5,639,400
5.38%, 5/05/45		1,000		875,250
				6,514,650
Ireland — 0.0%
ESB Finance Ltd., 2.13%, 6/08/27	EUR	5,105		5,574,181
Italy — 0.0%
CDP Reti SpA, 1.88%, 5/29/22		4,000		4,440,233
Malaysia — 0.1%
1MDB Global Investments Ltd., 4.40%, 3/09/23	USD	23,700		20,826,375
Mongolia — 0.1%
Development Bank of Mongolia LLC, 5.75%, 3/21/17		5,000		4,900,000
Trade & Development Bank of Mongolia LLC, 9.38%, 5/19/20		10,900		11,617,002
				16,517,002
Russia — 0.1%
Gazprom OAO Via Gaz Capital SA:
6.21%, 11/22/16 (a)(j)		5,000		5,175,000
6.51%, 3/07/22 (a)(j)		5,000		5,007,500
Rosneft Oil Co. via Rosneft International Finance Ltd., 4.20%, 3/06/22		5,000		4,262,500
				14,445,000

Foreign Agency Obligations	Par  (000)			Value
Singapore — 0.0%
BOC Aviation Pte. Ltd., 3.00%, 3/30/20		USD	4,000	$	3,936,200
South Korea — 0.0%
Minera y Metalurgica del Boleo SA de CV, 2.88%, 5/07/19			10,000		10,094,620
Sri Lanka — 0.0%
SriLankan Airlines Ltd., 5.30%, 6/27/19			3,550		3,479,000
Switzerland — 0.1%
Zuercher Kantonal bank, 2.63%, 6/15/27 (b)		EUR	16,315		18,061,490
United Arab Emirates — 0.0%
National Bank of Abu Dhabi PJSC, 5.00%, 3/07/18		AUD	9,900		7,935,006
Total Foreign Agency Obligations — 0.8%					241,646,072
Foreign Government Obligations
Argentina — 0.1%
Republic of Argentina:
7.00%, 10/03/15		USD	7,914		7,878,229
8.75%, 5/07/24			21,000		20,286,000
					28,164,229
Brazil — 0.2%
Federative Republic of Brazil:
4.25%, 1/07/25			45,567		43,994,939
5.63%, 1/07/41			24,185		23,096,675
					67,091,614
Germany — 0.8%
Bundesrepublik Deutschland, 2.50%, 8/15/46		EUR	56,521		77,168,953
Deutsche Bundesrepublik Inflation Linked Bonds:
0.10%, 4/15/23			6,800		8,379,705
0.10%, 4/15/26			139,728		168,933,479
					254,482,137
Greece — 0.1%
Hellenic Republic:
4.75%, 4/17/19			37,870		23,228,549
3.00%, 2/24/23 (c)			429		210,832
3.00%, 2/24/24 (c)			3,133		1,481,656
3.00%, 2/24/25 (c)			429		198,603
3.00%, 2/24/26 (c)			429		191,125
3.00%, 2/24/27 (c)			429		188,486
3.00%, 2/24/28 (c)			429		190,652
3.00%, 2/24/29 (c)			429		187,515
3.00%, 2/24/30 (c)			429		186,926
3.00%, 2/24/31 (c)			429		186,526
3.00%, 2/24/32 (c)			429		183,560
3.00%, 2/24/33 (c)			429		178,675
3.00%, 2/24/34 (c)			429		182,974
3.00%, 2/24/35 (c)			429		179,112
3.00%, 2/24/36 (c)			429		181,281
3.00%, 2/24/37 (c)			429		183,633
3.00%, 2/24/38 (c)			429		183,203
3.00%, 2/24/39 (c)			429		179,354
3.00%, 2/24/40 (c)			429		182,758
3.00%, 2/24/41 (c)			429		182,269
3.00%, 2/24/42 (c)			429		183,466
					28,251,155
India — 0.3%
Republic of India, 7.16%, 5/20/23		INR	7,000,000		104,811,259

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 33

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Foreign Government Obligations	Par  (000)			Value
Indonesia — 0.3%
Perusahaan Penerbit SBSN Indonesia III, 4.33%, 5/28/25 (a)		USD	34,086	$	33,192,947
Republic of Indonesia:
5.38%, 10/17/23 (a)			18,219		19,608,199
5.88%, 1/15/24 (a)			3,109		3,435,445
4.13%, 1/15/25			10,600		10,401,250
6.63%, 2/17/37 (a)			12,243		13,834,590
					80,472,431
Italy — 3.7%
Buoni Poliennali Del Tesoro:
2.45%, 3/26/16		EUR	73,622		83,370,820
2.55%, 10/22/16			98,410		112,698,067
2.25%, 4/22/17			37,505		43,130,660
4.75%, 6/01/17			141,163		170,264,944
2.15%, 11/12/17			21,645		25,041,088
3.50%, 6/01/18			110,355		133,139,325
1.35%, 4/15/22			77,555		84,231,623
5.50%, 9/01/22			16,160		22,332,933
5.50%, 11/01/22			4,910		6,776,290
1.50%, 6/01/25			65,154		67,520,080
3.10%, 9/15/26			29,870		41,611,730
Buoni Poliennali Del Tesoro Inflation Linked Bond:
2.35%, 9/15/19			184,850		247,269,137
2.10%, 9/15/21			71,805		94,127,197
					1,131,513,894
Japan — 1.0%
Government of Japan (20 Year), 1.50%, 6/20/34		JPY	36,717,850		318,695,997
Mexico — 1.3%
United Mexican States:
4.75%, 6/14/18		MXN	2,434,352		155,511,223
8.50%, 12/13/18			646,850		45,892,994
5.00%, 12/11/19			511,300		32,261,851
4.00%, 10/02/23		USD	30,490		31,328,475
8.00%, 12/07/23		MXN	1,240,000		89,150,537
6.05%, 1/11/40		USD	2,578		2,926,030
4.75%, 3/08/44			31,002		29,451,900
5.55%, 1/21/45			8,736		9,292,920
					395,815,930
Mongolia — 0.0%
Mongolian People’s Republic:
7.50%, 6/30/18		CNY	20,000		3,193,033
5.13%, 12/05/22		USD	337		304,143
					3,497,176
Netherlands — 0.4%
Kingdom of the Netherlands, 1.25%, 1/15/18 (a)		EUR	100,000		115,401,681
New Zealand — 0.1%
New Zealand Government Bonds:
3.00%, 9/20/30		NZD	20,941		15,984,019
2.50%, 9/20/35			18,524		12,957,233
					28,941,252
Portugal — 0.8%
Portugal Obrigacoes do Tesouro OT:
3.85%, 4/15/21		EUR	51,513		63,015,363
2.88%, 10/15/25			4,000		4,418,649
3.88%, 2/15/30 (a)			26,380		31,000,867
Republic of Portugal:
5.13%, 10/15/24		USD	5,765		5,880,761

Foreign Government Obligations	Par  (000)			Value
Portugal (concluded)
4.10%, 2/15/45		EUR	131,657	$	152,191,253
					256,506,893
Russia — 0.2%
Russian Federation:
7.60%, 7/20/22		RUB	484,715		7,395,670
7.00%, 8/16/23			2,574,980		37,072,060
					44,467,730
Slovenia — 0.8%
Republic of Slovenia:
4.13%, 2/18/19 (a)		USD	33,661		35,007,440
4.13%, 1/26/20		EUR	2,400		3,009,565
5.50%, 10/26/22 (a)		USD	47,704		52,901,350
5.85%, 5/10/23			38,080		43,085,616
5.25%, 2/18/24 (a)			86,166		93,920,940
4.63%, 9/09/24		EUR	20,285		26,786,838
					254,711,749
Spain — 1.0%
Kingdom of Spain:
2.10%, 4/30/17			37,943		43,615,626
4.10%, 7/30/18			26,086		32,100,746
5.40%, 1/31/23			16,490		22,837,597
4.40%, 10/31/23			3,447		4,515,479
2.75%, 10/31/24			29,653		34,372,792
1.60%, 4/30/25			153,758		161,286,653
					298,728,893
Sri Lanka — 0.0%
Republic of Sri Lanka:
6.25%, 10/04/20		USD	6,750		6,910,650
6.25%, 7/27/21			2,460		2,506,125
					9,416,775
United Kingdom — 0.4%
United Kingdom, 3.50%, 1/22/45		GBP	61,077		111,019,471
Total Foreign Government Obligations — 11.5%					3,531,990,266
Investment Companies	Shares
iShares Gold Trust (f)(k)(l)			10,300,000		116,802,000
iShares iBoxx $ High Yield Corporate Bond ETF (k)			2,301,790		204,398,952
SPDR Gold Shares (f)(l)			1,432,454		160,964,856
Total Investment Companies — 1.6%					482,165,808
Non-Agency Mortgage-Backed Securities	Par  (000)
Collateralized Mortgage Obligations — 2.8%
Ireland — 0.0%
Bluestep Mortgage Securities No.2 Ltd., 2.05%, 11/10/55 (b)		SEK	49,265		5,943,804
Italy — 0.0%
Berica 8 Residential Mbs Srl, Series 8, Class A, 0.29%, 3/31/48 (b)		EUR	2,679		2,932,755

See Notes to Financial Statements.

34 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Collateralized Mortgage Obligations (continued)
United Kingdom — 0.1%
Auburn Securities 5 PLC, Series 5, Class A2, 0.83%, 12/01/41 (b)	GBP	4,996	$	7,579,947
Eurosail-UK PLC, Series 2007-4X, Class A3, 1.52%, 6/13/45 (b)		2,105		3,249,229
Gemgarto PLC, Series 2015-1, Class X1, 4.04%, 2/16/47 (b)		1,300		2,042,612
Granite Master Issuer PLC:
Series 2006-2, Class A5, 0.14%, 12/20/54 (b)	EUR	1,781		1,979,445
Series 2007-2, Class 3A2, 0.14%, 12/17/54 (b)		1,942		2,158,096
Grifonas Finance PLC, Series 1, Class A, 0.39%, 8/28/39 (b)		6,301		3,617,952
Paragon Mortgages No. 13 PLC, Series 13X, Class A2C, 0.46%, 1/15/39 (b)	USD	4,552		4,181,606
				24,808,887
United States — 2.7%
Adjustable Rate Mortgage Trust, Series 2005-12, Class 4A1, 3.26%, 3/25/36 (b)		13,167		9,870,838
American Home Mortgage Investment Trust, Series 2006-1, Class 2A3, 2.17%, 12/25/35 (b)		2,185		1,529,454
BCAP LLC Trust, Series 2010-RR11, Class 4A1, 2.55%, 3/27/47 (a)(b)		8,062		7,440,326
Bear Stearns Adjustable Rate Mortgage Trust, Series 2005-1, Class 4A1, 2.72%, 3/25/35 (b)		168		162,196
Bear Stearns ALT-A Trust, Series 2006-6, Class 1A1, 0.50%, 11/25/36 (b)		6,898		5,232,384
Bear Stearns Asset Backed Securities I Trust:
Series 2005-AC9, Class A5, 5.75%, 12/25/35 (c)		7,150		6,366,625
Series 2006-AC1, Class 1A2, 5.75%, 2/25/36 (c)		8,076		6,707,552
Countrywide Alternative Loan Trust:
Series 2005-61, Class 2A2, 0.56%, 12/25/35 (b)		9,490		6,782,439
Series 2005-72, Class A3, 0.48%, 1/25/36 (b)		6,197		5,008,586
Series 2005-80CB, Class 4A1, 6.00%, 2/25/36		13,061		11,055,628
Series 2006-23CB, Class 2A5, 0.58%, 8/25/36 (b)		16,193		8,086,800
Series 2006-25CB, Class A2, 6.00%, 10/25/36		232		208,943
Series 2006-34, Class A3, 0.88%, 11/25/46 (b)		11,399		6,309,624
Series 2006-45T1, Class 2A2, 6.00%, 2/25/37		6,274		5,262,945
Series 2006-J7, Class 2A1, 2.20%, 11/20/36 (b)		12,717		9,176,254
Series 2006-OA10, Class 2A1, 0.37%, 8/25/46 (b)		22,556		17,061,767
Series 2006-OA11, Class A4, 0.37%, 9/25/46 (b)		10,093		8,300,496
Series 2006-OA14, Class 1A1, 1.88%, 11/25/46 (b)		31,376		26,474,302
Series 2006-OA21, Class A1, 0.38%, 3/20/47 (b)		11,332		8,923,842
Series 2006-OA3, Class 1A1, 0.38%, 5/25/36 (b)		1,909		1,565,157

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Collateralized Mortgage Obligations (continued)
United States (continued)
Series 2006-OA3, Class 2A1, 0.39%, 5/25/36 (b)		USD	11,751	$	9,435,198
Series 2006-OA6, Class 1A2, 0.39%, 7/25/46 (b)			20,538		17,792,338
Series 2007-22, Class 2A16, 6.50%, 9/25/37			30,709		24,370,028
Series 2007-25, Class 1A3, 6.50%, 11/25/37			45,453		39,274,997
Series 2007-2CB, Class 1A15, 5.75%, 3/25/37			697		628,597
Series 2007-9T1, Class 1A1, 6.00%, 5/25/37			9,192		7,364,969
Series 2007-OA2, Class 1A1, 0.99%, 3/25/47 (b)			29,961		22,509,412
Series 2007-OA3, Class 1A1, 0.32%, 4/25/47 (b)			9,282		7,732,847
Series 2007-OA6, Class A1A, 0.32%, 6/25/37 (b)			12,728		10,787,288
Series 2007-OA7, Class A1B, 0.32%, 5/25/47 (b)			11,139		9,370,315
Series 2007-OA8, Class 2A1, 0.36%, 6/25/47 (b)			6,606		5,174,967
Series 2007-OH3, Class A1A, 0.47%, 9/25/47 (b)			10,115		8,626,005
Countrywide Home Loan Mortgage Pass-Through Trust:
Series 2005-22, Class 2A1, 2.46%, 11/25/35 (b)			4,973		4,213,604
Series 2006-OA4, Class A1, 1.12%, 4/25/46 (b)			49,429		28,317,095
Series 2006-OA5, Class 2A1, 0.38%, 4/25/46 (b)			14,934		12,046,726
Credit Suisse Commercial Mortgage Trust:
Series 2014-4R, Class 16A3, 0.78%, 2/27/36 (a)(b)			3,750		3,133,264
Series 2014-9R, Class 3A1, 1.90%, 11/27/37 (a)(b)			16,819		15,702,250
Series 2014-9R, Class 6A1, 0.33%, 3/27/36 (a)(b)			9,816		9,025,372
Credit Suisse Mortgage Capital Certificates:
Series 2008-2R, Class 1A1, 6.00%, 7/25/37 (a)			13,042		11,672,224
Series 2011-2R, Class 1A1, 2.43%, 3/27/37 (a)(b)			2,287		2,247,723
Series 2011-4R, Class 5A1, 2.70%, 5/27/36 (a)(b)			3,551		3,555,996
Series 2011-4R, Class 6A1, 2.41%, 5/27/36 (a)(b)			1,148		1,143,970
Series 2011-5R, Class 2A1, 2.76%, 8/27/46 (a)(b)			6,177		6,046,156
Series 2011-5R, Class 3A1, 2.90%, 9/27/47 (a)(b)			1,639		1,595,944
Series 2011-6R, Class 6A1, 2.79%, 8/28/36 (a)(b)			4,204		4,083,002
Series 2014-11R, Class 16A1, 3.17%, 9/27/47 (a)(b)			18,060		17,489,839
Series 2015-4R, Class 1A2, 0.34%, 11/25/22 (a)(b)			2,334		1,977,610
Series 2015-4R, Class 1A4, 0.34%, 5/25/28 (a)(b)			6,805		3,700,219
Series 2015-5R, Class 3A1, 4.45%, 1/29/37 (a)			10,103		10,102,801

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 35

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Collateralized Mortgage Obligations (continued)
United States (continued)
Series 2015-6R, Class 5A1, 4.75%, 1/27/37 (a)		USD	8,130	$	7,560,900
Series 2015-6R, Class 5A2, 0.48%, 10/27/36 (a)			12,196		6,483,065
Series 2015-PR1, Class A-1, 3.50%, 2/25/55 (a)(c)			13,588		13,078,834
Deutsche Alt-A Securities Mortgage Loan Trust:
Series 2006-OA1, Class A1, 0.38%, 2/25/47 (b)			5,937		4,803,967
Series 2007-OA4, Class 1A1B, 0.31%, 8/25/47 (b)			6,277		5,209,134
Deutsche ALT-A Securities, Inc., Series 2007-RS1, Class A2, 0.68%, 1/27/37 (a)(b)			5,448		8,695,485
GreenPoint Mortgage Funding Trust, Series 2007-AR3, Class A1, 0.40%, 6/25/37 (b)			10,219		8,552,706
GSR Mortgage Loan Trust, Series 2005-AR1, Class 2A1, 2.64%, 1/25/35 (b)			2,360		2,374,257
Impac CMB Trust, Series 2005-7, Class A1, 0.70%, 11/25/35 (b)			5,929		4,932,869
IndyMac INDX Mortgage Loan Trust, Series 2007-FLX2, Class A1A, 0.35%, 4/25/37 (b)			11,960		10,411,915
JPMorgan Alternative Loan Trust:
Series 2007-A1, Class 1A4, 0.39%, 3/25/37 (b)			13,528		8,954,547
Series 2007-A2, Class 2A1, 3.58%, 5/25/37 (b)			3,428		2,809,808
JPMorgan Madison Avenue Securities Trust, Series 2014-1, Class M2, 4.43%, 11/25/24 (a)(b)			6,269		6,436,557
JPMorgan Mortgage Trust, Series 2007-A1, Class 4A1, 2.49%, 7/25/35 (b)			163		163,273
LSTAR Securities Investment Trust:
Series 2014-1, Class Note, 3.28%, 9/01/21 (a)(b)			40,991		41,042,515
Series 2014-2, Class A, 2.18%, 12/01/21 (a)(b)			37,505		37,083,177
Series 2015-1, Class A, 2.18%, 1/01/20 (a)(b)			15,469		15,300,809
Series 2015-2, Class A, 2.18%, 1/01/20 (a)(b)			11,066		10,941,801
Series 2015-3, Class A, 2.18%, 3/01/20 (a)(b)			17,565		17,345,011
MASTR Resecuritization Trust, Series 2008-3, Class A1, 0.62%, 8/25/37 (a)(b)			13,282		9,480,436
Morgan Stanley Resecuritization Trust, Series 2014-R5, Class B1, 0.35%, 11/26/33 (a)(b)			15,487		13,889,646
Nomura Resecuritization Trust, Series 2014-1R, Class 2A1, 0.37%, 2/25/37 (a)(b)			25,960		24,850,412
RBSSP Resecuritization Trust:
Series 2013-4, Class 1A1, 1.67%, 12/26/37 (a)(b)			16,601		15,916,174
Series 2013-5, Class 3A1, 0.54%, 1/26/36 (a)(b)			34,080		31,353,140
Reperforming Loan REMIC Trust:
Series 2005-R2, Class 1AF1, 0.52%, 6/25/35 (a)(b)			5,676		4,982,477
Series 2005-R3, Class AF, 0.58%, 9/25/35 (a)(b)			7,797		7,065,680

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Collateralized Mortgage Obligations (concluded)
United States (concluded)
Structured Adjustable Rate Mortgage Loan Trust:
Series 2005-11, Class 1A1, 2.47%, 5/25/35 (b)	USD	2,860	$	2,466,440
Series 2007-2, Class 3A3, 2.71%, 4/25/37 (b)		3,360		2,831,082
Structured Agency Credit Risk Debt Notes, Series 2014-DN1, Class M3, 4.68%, 2/25/24 (b)		3,250		3,350,324
Structured Asset Mortgage Investments II Trust, Series 2006-AR2, Class A1, 0.41%, 2/25/36 (b)		5,082		4,031,742
WaMu Mortgage Pass-Through Certificates Trust:
Series 2006-AR6, Class 2A, 1.11%, 8/25/46 (b)		14,681		10,239,774
Series 2007-OA1, Class 2A, 0.87%, 12/25/46 (b)		15,869		10,642,140
Series 2007-OA5, Class 1A, 0.90%, 6/25/47 (b)		8,176		6,933,223
				810,860,234
Commercial Mortgage-Backed Securities — 6.0%
Cayman Islands — 0.1%
STRIPs Ltd.:
Series 2012-1A, Class A, 1.50%, 12/25/44 (a)		2,941		2,911,851
Series 2012-1A, Class B, 0.50%, 12/25/44 (a)		15,270		13,857,525
				16,769,376
Ireland — 0.0%
German Residential Funding Ltd., Series 2013-1, Class E, 4.14%, 8/27/24 (b)	EUR	3,678		4,246,296
Talisman-6 Finance PLC, Series 6, Class A, 0.19%, 10/22/16 (b)		5,794		6,398,081
Taurus Ltd., Series 2015-DE2, Class E, 3.50%, 2/01/26 (b)		2,385		2,667,564
				13,311,941
Italy — 0.0%
Fondi Immobili Pubblici Funding SRL, Series 1, Class A2, 1.15%, 1/10/23 (b)		9,411		10,255,723
Taurus IT Srl, Series 2015-IT1, Class A, 1.49%, 2/18/27 (b)		1,644		1,828,144
				12,083,867
United Kingdom — 0.1%
Canary Wharf Finance II PLC:
Series II, Class C2, 1.94%, 10/22/37 (b)	GBP	2,100		3,118,344
Series II, Class D2, 2.67%, 10/22/37 (b)		13,489		20,453,350
Morpheus European Loan Conduit No. 19 PLC, Series 19X, Class C, 1.25%, 11/01/29 (b)		1,189		1,811,841
Taurus PLC, Series 2013-GMF1, Class D, 2.74%, 5/21/24 (b)	EUR	2,318		2,625,174
				28,008,709
United States — 5.8%
Aventura Mall Trust, Series 2013-AVM, Class E, 3.87%, 12/05/32 (a)(b)	USD	7,678		7,503,548
BAMLL Commercial Mortgage Securities Trust, Series 2015-200P, Class F, 3.72%, 4/14/33 (a)(b)		13,630		12,022,955

See Notes to Financial Statements.

36 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
Banc of America Commercial Mortgage Trust:
Series 2006-6, Class AJ, 5.42%, 10/10/45		USD	19,321	$	19,906,909
Series 2007-1, Class AMFX, 5.48%, 1/15/49 (b)			2,400		2,502,401
Series 2007-3, Class AJ, 5.75%, 6/10/49 (b)			17,310		17,945,537
Series 2007-5, Class AM, 5.77%, 2/10/51 (b)			29,004		30,505,189
Banc of America Large Loan, Inc., Series 2006-277A, Class PAJ, 6.50%, 10/10/45 (a)(b)			7,803		7,913,708
Banc of America Merrill Lynch Commercial Mortgage Securities Trust:
Series 2013-DSMZ, Class M, 5.88%, 9/15/18 (a)(b)			19,320		19,319,807
Series 2014-FL1, Class D, 4.19%, 12/15/31 (a)(b)			13,775		13,474,209
Series 2015-ASHF, Class F, 4.19%, 1/15/28 (a)(b)			13,833		13,833,000
Banc of America Merrill Lynch Commercial Mortgage, Inc.:
Series 2004-4, Class F, 5.52%, 7/10/42 (a)(b)			5,450		5,578,838
Series 2005-6, Class AJ, 5.33%, 9/10/47 (b)			200		202,325
Banc of America Re-REMIC Trust:
Series 2009-UB1, Class A4B, 5.59%, 6/24/50 (a)(b)			3,300		3,502,620
Series 2010-UB4, Class A4B, 4.94%, 12/20/41 (a)(b)			571		561,278
Barclays Commercial Mortgage Trust:
Series 2014-BXO, Class B, 1.79%, 8/15/27 (a)(b)			8,077		8,063,269
Series 2015-SLP, Class D, 3.39%, 2/15/28 (a)(b)			8,890		8,842,954
Series 2015-VFM, Class A2, 3.38%, 3/15/36 (a)(b)			3,030		3,013,032
Bayview Commercial Asset Trust, Series 2008-4, Class A3, 2.94%, 7/25/38 (a)(b)			10,343		10,240,684
Bear Stearns Commercial Mortgage Securities Trust:
Series 2005-PW10, Class AM, 5.45%, 12/11/40 (b)			4,567		4,635,729
Series 2007-PW17, Class A3, 5.74%, 6/11/50			625		624,460
BHMS Mortgage Trust:
Series 2014-ATLS, Class AFL, 1.68%, 7/05/33 (a)(b)			12,265		12,190,760
Series 2014-MZ, Class M, 7.37%, 7/01/21 (a)(b)			4,945		4,919,978
BLCP Hotel Trust, Series 2014-CLRN, Class F, 3.22%, 8/15/29 (a)(b)			3,360		3,203,579
BWAY Mortgage Trust:
Series 2013-1515, Class F, 4.06%, 3/10/33 (a)(b)			8,303		7,640,553
Series 2015-1740, Class E, 3.95%, 1/10/35 (a)(b)			9,438		8,985,693
BXHTL Mortgage Trust:
Series 2015-JWRZ, Class DR, 2.35%, 5/15/29 (a)(b)			5,200		5,082,693
Series 2015-JWRZ, Class GL, 2.35%, 5/15/29 (a)(b)			7,976		7,589,034

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
Carefree Portfolio Trust:
Series 2014-CARE, Class A, 1.51%, 11/15/19 (a)(b)		USD	5,930	$	5,944,754
Series 2014-CARE, Class D, 3.44%, 11/15/19 (a)(b)			12,510		12,559,490
Series 2014-CARE, Class E, 4.19%, 11/15/19 (a)(b)			9,760		9,807,697
Series 2014-CMZA, Class MZA, 6.16%, 11/15/19 (a)(b)			2,500		2,502,525
CDGJ Commercial Mortgage Trust, Series 2014-BXCH, Class EPA, 4.44%, 11/15/19 (a)(b)			15,380		15,415,128
CGBAM Commercial Mortgage Trust, Series 2015-SMRT, Class E, 3.91%, 4/10/28 (a)(b)			4,840		4,694,974
CG-CCRE Commercial Mortgage Trust:
Series 14-FL1, Class D, 2.94%, 6/15/19 (a)(b)			6,856		6,803,462
Series 14-FL1, Class E, 4.84%, 6/15/19 (a)(b)			4,370		4,337,063
Citigroup Commercial Mortgage Trust:
Series 2013-375P, Class E, 3.63%, 5/10/35 (a)(b)			16,906		15,237,192
Series 2014-388G, Class E, 2.52%, 6/15/33 (a)(b)			9,800		9,725,941
Series 2014-GC21, Class D, 5.00%, 5/10/47 (a)(b)			1,665		1,530,092
Series 2014-GC25, Class AS, 4.02%, 10/10/47			10,485		10,754,423
Series 2015-SSHP, Class D, 3.24%, 9/15/27 (a)(b)			2,550		2,549,253
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2005-CD1, Class AJ, 5.38%, 7/15/44 (b)			10,000		10,064,570
Citigroup/Deutsche Bank Mortgage Trust:
Series 2007-CD5, Class AJ, 6.33%, 11/15/44 (b)			14,295		15,376,717
Series 2007-CD5, Class AJA, 6.33%, 11/15/44 (b)			9,515		10,191,212
COBALT CMBS Commercial Mortgage Trust, Series 2007-C3, Class AJ, 5.96%, 5/15/46 (b)			4,165		4,284,106
Commercial Mortgage Pass-Through Certificates:
Series 2007-C9, Class AJ, 5.65%, 12/10/49 (b)			7,460		7,794,171
Series 2007-C9, Class AJFL, 0.88%, 12/10/49 (a)(b)			24,421		23,725,685
Series 2007-C9, Class E, 5.99%, 12/10/49 (b)			1,710		1,734,378
Series 2007-C9, Class G, 5.99%, 12/10/49 (a)(b)			3,130		3,087,570
Series 2007-GG11, Class AM, 5.87%, 12/10/49 (b)			10,335		11,085,838
Series 2010-RR1, Class GEB, 5.54%, 12/11/49 (a)(b)			2,340		2,449,152
Series 2012-LTRT, Class A2, 3.40%, 10/05/30 (a)			2,460		2,435,046
Series 2013-300P, Class D, 4.54%, 8/10/30 (a)(b)			750		768,770
Series 2013-CR11, Class D, 5.34%, 10/10/46 (a)(b)			9,330		9,022,586

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 37

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
Series 2013-CR12, Class D, 5.25%, 10/10/46 (a)(b)		USD	4,540	$	4,396,568
Series 2013-FL3, Class MMHP, 3.79%, 10/13/28 (a)(b)			1,775		1,787,416
Series 2013-FL3, Class RGC1, 3.75%, 10/13/28 (a)(b)			8,190		8,205,807
Series 2013-FL3, Class RGC2, 4.50%, 10/13/28 (a)(b)			11,337		11,339,494
Series 2013-FL3, Class RRI1, 3.44%, 11/13/28 (a)(b)			681		681,670
Series 2013-GAM, Class A2, 3.37%, 2/10/28 (a)			1,635		1,657,228
Series 2014-277P, Class A, 3.73%, 8/10/49 (a)(b)			14,776		15,056,404
Series 2014-CR20, Class A4, 3.59%, 11/10/47			1,594		1,626,634
Series 2014-FL4, Class D, 2.64%, 7/13/31 (a)(b)			3,115		3,100,733
Series 2014-FL5, Class B, 2.33%, 9/15/16 (a)(b)			6,200		6,192,244
Series 2014-FL5, Class D, 4.00%, 10/15/31 (a)(b)			15,675		14,508,764
Series 2014-FL5, Class HFL1, 3.44%, 7/15/16 (a)(b)			6,988		6,725,950
Series 2014-KYO, Class F, 3.69%, 6/11/27 (a)(b)			25,265		25,288,825
Series 2014-PAT, Class D, 2.34%, 8/13/27 (a)(b)			1,447		1,451,586
Series 2014-PAT, Class E, 3.34%, 8/15/27 (a)(b)			2,500		2,487,307
Series 2014-PAT, Class F, 2.63%, 8/15/27 (a)(b)			13,700		13,044,387
Series 2014-PAT, Class G, 1.78%, 8/15/27 (a)(b)			11,827		10,857,777
Series 2014-TWC, Class E, 3.44%, 2/13/32 (a)(b)			28,385		28,423,973
Series 2014-TWC, Class F, 4.44%, 2/13/32 (a)(b)			12,440		12,440,000
Series 2015-3BP, Class A, 3.18%, 2/10/35 (a)			5,580		5,476,781
Series 2015-CR22, Class A5, 3.31%, 3/10/48			2,050		2,039,483
Series 2015-CR23, Class A4, 3.50%, 5/10/48			5,430		5,479,864
Series 2015-CR23, Class CME, 3.81%, 5/10/48 (a)			7,850		7,144,960
Series 2015-CR23, Class D, 4.40%, 5/10/48 (b)			7,980		6,769,849
Series 2015-DC1, Class A5, 3.35%, 2/04/48			5,840		5,828,051
Series 2015-LC19, Class D, 2.87%, 3/12/48 (a)			14,486		11,218,639
Series 2015-LC21, Class A4, 3.71%, 7/10/48			1,890		1,937,687
Core Industrial Trust:
Series 2015-CALW, Class A, 3.04%, 2/10/34 (a)			7,463		7,491,031
Series 2015-CALW, Class G, 3.98%, 2/10/34 (a)(b)			29,865		27,926,761
Credit Suisse Commercial Mortgage Trust:
Series 2006-C4, Class AM, 5.51%, 9/15/39			1,690		1,762,846
Series 2006-C5, Class AM, 5.34%, 12/15/39			7,350		7,713,678
Series 2007-C2, Class A2, 5.45%, 1/15/49 (b)			1		1,284
Series 2007-C3, Class AAB, 5.89%, 6/15/39 (b)			3,003		3,102,018
Series 2007-C4, Class A1AM, 6.15%, 9/15/39 (b)			41,131		44,062,527

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
Series 2007-C4, Class AJ, 6.15%, 9/15/39 (b)		USD	18,402	$	19,112,906
Series 2007-C4, Class AM, 6.15%, 9/15/39 (b)			11,580		12,391,167
Series 2009-RR1, Class A3C, 5.38%, 2/15/40 (a)			4,235		4,383,416
Series 2014-2R, Class 28A1, 3.00%, 6/29/37 (a)(b)			7,933		7,458,042
Series 2014-SURF, Class E, 3.29%, 2/15/29 (a)(b)			3,420		3,418,389
Series 2014-TIKI, Class D, 2.44%, 9/15/28 (a)(b)			2,170		2,152,440
Series 2014-TIKI, Class E, 3.34%, 9/15/38 (a)(b)			3,260		3,243,938
Series 2015-DEAL, Class A, 1.51%, 4/15/29 (a)(b)			18,860		18,740,975
Credit Suisse Commercial Mortgage Trust Series 2007-C4, Series 2007-C4, Class B, 6.15%, 9/15/39 (a)(b)			3,423		3,427,025
Credit Suisse First Boston Mortgage Securities Corp.:
Series 2005-C2, Class AMFX, 4.88%, 4/15/37			3,736		3,740,172
Series 2005-C3, Class AJ, 4.77%, 7/15/37			611		610,406
Series 2005-C3, Class B, 4.88%, 7/15/37			2,655		2,649,807
Series 2005-C6, Class AJ, 5.23%, 12/15/40 (b)			6,790		6,843,673
Credit Suisse Mortgage Capital Certificates:
Series 2010-UD1, Class B, 5.78%, 12/16/49 (a)(b)			2,700		2,837,970
Series 2014-TIKI, Class F, 4.01%, 9/15/38 (a)(b)			7,650		7,589,481
Series 2015-DEAL, Class D, 3.29%, 4/15/29 (a)(b)			8,100		8,061,549
CSAIL Commercial Mortgage Trust:
Series 2015-C1, Class C, 4.45%, 4/17/50			2,136		2,103,742
Series 2015-C1, Class D, 3.95%, 4/17/50 (a)(b)			2,750		2,349,776
Series 2015-C2, Class A4, 3.50%, 6/15/57			2,720		2,765,612
Del Coronado Trust, Series 2013-HDMZ, Class M, 5.19%, 3/15/18 (a)(b)			2,077		2,077,623
Deutsche Bank Re-REMIC Trust, Series 2013-EZ3, Class A, 1.64%, 12/18/49 (a)(b)			6,784		6,815,307
Extended Stay America Trust, Series 2013-ESH7, Class A27, 2.96%, 12/05/31 (a)			4,525		4,539,534
FREMF Mortgage Trust, Series 2015-K43, Class C, 3.86%, 2/25/48 (a)(b)			2,385		2,271,488
GAHR Commercial Mortgage Trust:
Series 2015-NRF, Class AFL1, 1.48%, 12/15/16 (a)(b)			13,203		13,201,006
Series 2015-NRF, Class FFX, 3.49%, 12/15/34 (a)(b)			1,540		1,419,898
Series 2015-NRF, Class GFX, 3.49%, 12/15/34 (a)(b)			56,861		50,777,897
GE Capital Commercial Mortgage Corp. Trust, Series 2007-C1, Class AAB, 5.48%, 12/10/49			329		332,014
GP Portfolio Trust, Series 2014-GPP, Class E, 4.04%, 2/15/27 (a)(b)			17,265		17,290,414
GRACE Mortgage Trust, Series 2014-GRCE, Class F, 3.71%, 6/10/28 (a)(b)			22,857		21,746,836
GS Mortgage Securities Corp Trust:
Series 2013-NYC5, Class F, 3.77%, 1/10/30 (a)(b)			6,935		6,969,287
Series 2013-NYC5, Class G, 3.77%, 1/10/30 (a)(b)			4,445		4,388,184

See Notes to Financial Statements.

38 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)			Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
GS Mortgage Securities Corp. II:
Series 2005-ROCK, Class H, 5.71%, 5/03/32 (a)		USD	790	$	887,036
Series 2013-KING, Class E, 3.55%, 12/10/27 (a)(b)			9,480		8,983,665
GS Mortgage Securities Trust:
Series 2006-GG6, Class AJ, 5.71%, 4/10/38 (b)			6,000		6,094,272
Series 2013-GC16, Class A4, 4.27%, 11/10/46			6,030		6,505,942
Series 2014-GSFL, Class D, 4.08%, 7/15/31 (a)(b)			17,870		17,696,036
Series 2014-GSFL, Class E, 6.14%, 7/15/31 (a)(b)			2,180		2,157,686
Hilton USA Trust:
Series 2013-HLF, Class EFL, 3.94%, 11/05/30 (a)(b)			4,346		4,345,901
Series 2013-HLT, Class EFX, 5.61%, 11/05/30 (a)(b)			30,979		31,397,805
JPMBB Commercial Mortgage Securities Trust:
Series 2014-C22, Class C, 4.71%, 9/15/47 (b)			5,165		5,138,157
Series 2014-C23, Class D, 4.11%, 9/15/24 (a)(b)			11,001		9,519,363
Series 2014-C24, Class D, 4.07%, 11/15/47 (a)(b)			6,060		5,246,736
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2014-FL4, Class C, 2.39%, 12/15/30 (a)(b)			10,910		10,894,966
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2002-CIB4, Class C, 6.45%, 5/12/34 (a)(b)			5,019		5,175,041
Series 2005-CB12, Class AJ, 4.99%, 9/12/37 (b)			800		802,082
Series 2006-CB15, Class AM, 5.86%, 6/12/43 (b)			8,673		8,828,507
Series 2006-LDP8, Class AJ, 5.48%, 5/15/45 (b)			5,090		5,264,200
Series 2007-CB20, Class AJ, 6.28%, 2/12/51 (b)			16,722		17,473,248
Series 2007-CB20, Class B, 6.38%, 2/12/51 (a)(b)			3,424		3,447,389
Series 2007-LDPX, Class AM, 5.46%, 1/15/49 (b)			27,857		28,798,121
Series 2008-C2, Class A4FL, 1.69%, 2/12/51 (b)			8,113		7,992,843
Series 2008-C2, Class ASB, 6.13%, 2/12/51 (b)			736		767,197
Series 2012-WLDN, Class A, 3.91%, 5/05/30 (a)			10,799		11,204,472
Series 2013-LC11, Class C, 3.96%, 4/15/46 (b)			840		827,067
Series 2014-C21, Class D, 4.82%, 8/15/47 (a)(b)			5,262		4,790,104
Series 2014-CBMZ, Class M, 6.41%, 10/15/29 (a)(b)			3,000		3,011,100
Series 2014-DSTY, Class A, 3.43%, 6/10/27 (a)			4,945		5,117,867
Series 2014-DSTY, Class D, 3.93%, 6/10/27 (a)(b)			11,720		11,387,468
Series 2014-DSTY, Class E, 3.93%, 6/10/27 (a)(b)			8,255		7,701,502
Series 2014-FBLU, Class E, 3.68%, 12/15/28 (a)(b)			6,610		6,606,854
Series 2014-FL6, Class A, 1.59%, 11/15/31 (a)(b)			18,640		18,629,767
Series 2014-FL6, Class BAT1, 4.19%, 11/15/31 (a)(b)			5,120		5,120,000

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
Series 2014-FL6, Class BAT2, 5.44%, 11/15/31 (a)(b)	USD	773	$	772,500
Series 2014-FL6, Class DFW1, 3.69%, 11/15/31 (a)(b)		10,330		9,658,550
Series 2014-FL6, Class DFW2, 4.44%, 11/15/31 (a)(b)		5,640		5,273,400
Series 2014-FL6, Class TLAN, 4.19%, 11/15/31 (a)(b)		1,675		1,675,000
Series 2014-FL6, Class VINE, 4.99%, 11/15/31 (a)(b)		2,490		2,490,000
Series 2014-PHH, Class B, 1.79%, 8/15/27 (a)(b)		9,600		9,605,923
Series 2015-CSMO, Class A, 1.44%, 1/15/32 (a)(b)		9,380		9,347,039
Series 2015-CSMO, Class D, 3.49%, 1/15/32 (a)(b)		5,710		5,722,111
Series 2015-CSMO, Class E, 4.14%, 1/15/32 (a)(b)		12,540		12,573,695
Ladder Capital Commercial Mortgage Trust, Series 2014-909, Class E, 4.03%, 5/15/31 (a)(b)		6,730		6,481,407
LB-UBS Commercial Mortgage Trust:
Series 2005-C3, Class C, 4.92%, 7/15/40 (b)		545		545,096
Series 2005-C7, Class D, 5.35%, 11/15/40 (b)		3,980		4,008,035
Series 2006-C4, Class AJ, 6.05%, 6/15/38 (b)		13,286		13,711,511
Series 2006-C6, Class B, 5.47%, 9/15/39 (b)		5,625		5,692,978
Series 2007-C1, Class AJ, 5.48%, 2/15/40		19,790		20,503,608
Series 2007-C2, Class AM, 5.49%, 2/15/40 (b)		16,960		17,789,378
Series 2007-C6, Class AJ, 6.33%, 7/15/40 (b)		2,331		2,436,047
Series 2007-C6, Class AMFL, 6.11%, 7/15/40 (a)		12,122		12,994,396
Series 2007-C7, Class AJ, 6.46%, 9/15/45 (b)		26,558		28,078,637
Series 2007-C7, Class B, 6.46%, 9/15/45 (b)		4,278		4,325,182
Madison Avenue Trust, Series 2013-650M, Class E, 4.17%, 10/12/32 (a)(b)		11,095		10,887,135
Merrill Lynch Mortgage Trust:
Series 2005-CIP1, Class AJ, 5.14%, 7/12/38 (b)		2,339		2,339,586
Series 2005-CKI1, Class AJ, 5.28%, 11/12/37 (b)		4,950		4,987,150
Series 2007-C1, Class A1A, 5.84%, 6/12/50 (b)		7,227		7,547,699
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C13, Class D, 5.06%, 11/15/46 (a)(b)		410		395,748
Series 2014-C19, Class A2, 3.10%, 12/15/47		5,723		5,931,861
Morgan Stanley Capital I Trust:
Series 2005-IQ9, Class AJ, 4.77%, 7/15/56		1,795		1,793,340
Series 2006-HQ9, Class B, 5.83%, 7/12/44 (b)		3,113		3,197,172
Series 2007-HQ11, Class AMFL, 0.36%, 2/12/44 (b)		3,852		3,777,183
Series 2007-HQ12, Class A2FX, 5.59%, 4/12/49 (b)		1,006		1,004,347
Series 2007-HQ12, Class AM, 5.86%, 4/12/49 (b)		14,255		15,048,576

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 39

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Commercial Mortgage-Backed Securities (continued)
United States (continued)
Series 2007-HQ12, Class AMFL, 0.60%, 4/12/49 (b)	USD	8,885	$	8,644,838
Series 2007-IQ13, Class AM, 5.41%, 3/15/44		2,915		3,076,103
Series 2007-IQ14, Class A1A, 5.67%, 4/15/49 (b)		2,872		3,057,335
Series 2007-IQ15, Class AM, 5.91%, 6/11/49 (b)		10,195		10,843,392
Series 2007-T25, Class AM, 5.54%, 11/12/49 (b)		3,720		3,928,915
Series 2014-150E, Class F, 4.30%, 9/09/32 (a)(b)		6,850		6,346,107
Series 2014-CPT, Class F, 3.56%, 7/13/21 (a)(b)		12,617		11,915,861
Series 2014-CPT, Class G, 3.56%, 7/13/29 (a)(b)		2,765		2,597,513
Morgan Stanley Re-REMIC Trust:
Series 2010-GG10, Class A4B, 5.79%, 8/15/45 (a)(b)		5,219		5,553,225
Series 2011-IO, Class C, 0.00%, 3/23/51 (a)(d)		26,686		25,218,363
Series 2012-IO, Class AXB2, 1.00%, 3/27/51 (a)		4,490		4,478,697
MSBAM Commercial Mortgage Securities Trust, Series 2012-CKSV, Class D, 4.43%, 10/15/30 (a)(b)		828		791,826
New York Mortgage Securitization Trust, Series 2013-1, Class A, 5.44%, 8/27/24 (a)(b)		17,962		18,051,609
Prudential Commercial Mortgage Trust, Series 2003-PWR1, Class F, 5.05%, 2/11/36 (a)(b)		2,607		2,616,186
RAIT Trust, Series 2014-FL3, Class C, 3.57%, 12/17/31 (a)(b)		2,449		2,438,471
RCMC LLC, Series 2012-CRE1, Class A, 5.62%, 11/15/44 (a)		2,585		2,641,157
Resource Capital Corp. Ltd., Series 2014, Class CR2, 2.69%, 4/15/34 (a)(b)		3,930		3,911,576
SCG Trust, Series 2013-SRP1, Class AJ, 2.14%, 11/15/26 (a)(b)		11,390		11,423,726
Velocity Commercial Capital Loan Trust:
Series 2014-1, Class A, 2.18%, 9/25/44 (a)(b)		12,366		12,402,931
Series 2014-1, Class M1, 4.94%, 9/25/44 (a)(b)		6,821		6,844,873
VNDO Mortgage Trust, Series 2013-PENN, Class E, 4.08%, 12/13/29 (a)(b)		4,115		4,050,053
Wachovia Bank Commercial Mortgage Trust:
Series 2004-C12, Class E, 5.59%, 7/15/41 (b)		1,114		1,111,218
Series 2005-C21, Class A4, 5.43%, 10/15/44 (b)		900		900,720
Series 2006-C28, Class AJ, 5.63%, 10/15/48 (b)		31,100		31,672,977
Series 2006-C28, Class B, 5.67%, 10/15/48 (b)		2,993		2,993,952
Series 2006-WL7A, Class H, 0.59%, 9/15/21 (a)(b)		15,365		15,010,376
Series 2007-C32, Class AMFL, 0.41%, 6/15/49 (a)(b)		3,157		3,079,508
Series 2007-C33, Class AJ, 6.15%, 2/15/51 (b)		25,773		26,644,875
Series 2007-C33, Class B, 6.15%, 2/15/51 (b)		3,800		3,816,731
Wells Fargo Commercial Mortgage Trust:
Series 2013-BTC, Class F, 3.67%, 4/16/35 (a)(b)		18,291		15,638,714

Non-Agency Mortgage-Backed Securities	Par   (000)		Value
Commercial Mortgage-Backed Securities (concluded)
United States (concluded)
Series 2014-TISH, Class SCH2, 3.69%, 1/15/27 (a)(b)	USD	6,248	$	6,191,587
Series 2015-C27, Class A5, 3.45%, 2/15/48		5,721		5,758,244
Series 2015-C27, Class C, 3.89%, 2/15/48		9,129		8,495,466
Series 2015-C28, Class A4, 3.54%, 5/15/48		6,270		6,365,806
Wells Fargo Resecuritization Trust, Series 2012-IO, Class A, 1.75%, 8/20/21 (a)		1,195		1,195,441
WFRBS Commercial Mortgage Trust, Series 2014-LC14, Class D, 4.59%, 3/15/47 (a)(b)		2,431		2,205,933
WF-RBS Commercial Mortgage Trust, Series 2014-C22, Class B, 4.37%, 9/15/57 (b)		83		86,254
				1,771,031,980
Interest Only Collateralized Mortgage Obligations — 0.0%
United States — 0.0%
Reperforming Loan REMIC Trust, Series 2005-R3, Class AS, 5.60%, 9/25/35 (a)(b)		7,776		1,089,102
Interest Only Commercial Mortgage-Backed Securities — 0.4%
United States — 0.4%
American Homes 4 Rent, Series 2015-SFR1, Class XS, 0.00%, 4/17/45 (a)(b)		24,179		2
CG-CCRE Commercial Mortgage Trust, Series 2014-FL2, Class XCP, 0.50%, 10/15/16 (a)(b)		338,688		507,693
Citigroup Commercial Mortgage Trust:
Series 2013-SMP, Class XB, 0.45%, 1/12/30 (a)(b)		36,921		314,604
Series 2014-GC19, Class XA, 1.48%, 3/10/47 (b)		32,332		2,487,557
Series 2014-GC23, Class XA, 1.29%, 7/10/47 (b)		143,480		10,664,174
Commercial Mortgage Pass-Through Certificates:
Series 2012-CR2, Class XA, 2.05%, 8/15/45 (b)		27,016		2,491,947
Series 2013-CR13, Class XA, 1.16%, 12/10/23 (b)		132,542		7,129,944
Series 2013-CR6, Class XA, 1.66%, 3/10/46 (b)		40,653		2,418,550
Series 2014-CR18, Class XA, 1.45%, 7/15/47 (b)		47,106		3,496,018
Series 2014-TWC, Class XCP, 1.48%, 2/13/32 (a)(b)		240,975		5,615,199
Series 2015-CR23, Class XA, 1.16%, 5/10/48 (b)		138,720		9,429,353
Commercial Mortgage Trust, Series 2015-LC19, Class XA, 1.38%, 2/10/48 (b)		26,676		2,336,845
Core Industrial Trust:
Series 2015-TEXW, Class XA, 0.90%, 2/10/34 (a)(b)		57,480		2,596,372
Series 2015-WEST, Class XA, 1.08%, 2/10/37 (a)(b)		39,860		3,025,374
Credit Suisse Commercial Mortgage Trust, Series 2014-USA, Class X2, 0.19%, 9/17/37 (a)(b)		598,765		5,053,577
FREMF Mortgage Trust, Series 2015-K718, Class X2A, 0.10%, 2/25/22 (a)(b)		441,738		2,376,111
Hilton USA Trust, Series 2013-HLT, Class X1FX, 0.10%, 11/05/30 (a)(b)		169,959		67,814
IndyMac IMSC Mortgage Loan Trust, Series 2007-HOA1, Class AXPP, 0.00%, 7/25/47 (b)		55,115		4,948,924

See Notes to Financial Statements.

40 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Non-Agency Mortgage-Backed Securities	Par  (000)		Value
Interest Only Commercial Mortgage-Backed Securities (concluded)
United States (concluded)
JPMBB Commercial Mortgage Securities Trust:
Series 2013-C17, Class XA, 1.23%, 1/15/47 (b)	USD	43,555	$	2,557,072
Series 2014-C21, Class XA, 1.28%, 8/15/47 (b)		44,849		3,366,142
Series 2014-C24, Class XA, 1.24%, 11/15/47 (b)		57,936		3,734,527
Series 2015-C28, Class XA, 1.35%, 10/15/48 (b)		33,078		2,495,709
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2015-C27, Class XD, 0.50%, 2/15/48 (a)(b)		31,775		1,197,917
Series 2015-CSMO, Class XCP, 0.11%, 1/15/16 (a)(b)		629,360		377,616
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C13, Class XA, 1.37%, 11/15/46 (b)		88,990		6,175,551
Series 2014-C19, Class XA, 1.31%, 12/15/47 (b)		71,826		5,092,515
Series 2014-C19, Class XD, 1.34%, 12/15/47 (a)(b)		51,913		4,743,239
Series 2015-C21, Class XB, 0.45%, 3/15/48 (a)(b)		15,696		444,040
Series 2015-C22, Class XA, 1.33%, 5/15/46 (b)		224,184		17,835,381
Wells Fargo Commercial Mortgage Trust:
Series 2015-C27, Class XA, 1.15%, 2/15/48 (b)		55,067		3,916,191
Series 2015-NXS1, Class XA, 1.35%, 5/15/48 (b)		36,844		2,954,677
Series 2015-NXS1, Class XB, 0.50%, 5/15/48 (b)		13,786		535,537
WF-RBS Commercial Mortgage Trust:
Series 2014-C22, Class XA, 1.11%, 9/15/57 (b)		53,797		3,299,725
Series 2014-C23, Class XA, 0.86%, 10/14/57 (b)		74,533		3,339,766
Series 2014-LC14, Class XA, 1.61%, 3/15/47 (b)		88,036		6,986,118
				134,011,781
Total Non-Agency Mortgage-Backed Securities — 9.2%				2,820,852,436
Preferred Securities
Capital Trusts
Belgium — 0.0%
KBC Groep NV, 5.63% (b)(m)	EUR	7,000		7,638,130
China — 0.2%
Bank of China Ltd., 6.75% (b)(m)	CNY	14,000		2,390,002
CCCI Treasure Ltd., 3.50% (b)(m)	USD	12,000		11,908,800
Central Plaza Development Ltd., 8.38% (b)(m)		900		957,367
China Life Insurance Co. Ltd., 4.00%, 7/03/75 (b)		12,500		12,363,125
CITIC Ltd., 8.63% (b)(m)		3,000		3,435,000
CRCC Yupeng Ltd., 3.95% (b)(m)		10,300		10,497,245
Dianjian Haixing Ltd., 4.05% (b)(m)		1,650		1,684,485
Far East Horizon Ltd., 5.55% (b)(m)		4,000		4,098,820
Franshion Capital Ltd., 6.80% (g)(m)		10,000		10,850,000

Preferred Securities	Par  (000)		Value
China (concluded)
Industrial & Commercial Bank of China Ltd.:
6.00% (b)(m)	USD	5,050	$	5,223,215
6.00% (b)(m)	EUR	5,000		5,822,290
				69,230,349
Denmark — 0.0%
Danske Bank A/S, 5.88% (b)(m)	EUR	3,890		4,320,512
France — 0.3%
AXA SA, 3.88% (b)(m)		4,335		4,772,473
BNP Paribas Cardif SA, 4.03% (b)(m)		6,200		6,635,904
Credit Agricole Assurances SA, 4.25% (b)(m)		11,700		12,522,018
Electricite de France SA:
5.00% (b)(m)		6,200		7,197,206
5.88% (b)(m)	GBP	3,900		6,097,197
Orange SA:
4.00% (b)(m)	EUR	4,750		5,381,600
4.25% (b)(m)		1,018		1,176,060
5.00% (b)(m)		27,817		31,942,505
TOTAL SA:
2.25% (b)(m)		3,395		3,660,929
2.63% (b)(m)		4,785		4,957,050
				84,342,942
Germany — 0.2%
Bayer AG:
2.38%, 4/02/75 (b)		12,145		12,837,808
3.00%, 7/01/75 (b)		5,145		5,804,860
Bertelsmann SE & Co. KGaA, 3.50%, 4/23/75 (b)		2,800		2,853,910
Deutsche Annington Finance BV, 4.00% (b)(m)		4,900		5,434,522
HSH Nordbank AG, 7.25% (m)	USD	11,080		2,991,600
Merck KGaA, 2.63%, 12/12/74 (b)	EUR	2,100		2,288,803
Volkswagen International Finance NV, 3.50%, 12/31/70 (b)(m)		24,700		25,213,838
				57,425,341
Hong Kong — 0.0%
Noble Group Ltd., 6.00% (b)(m)	USD	2,075		1,700,213
India — 0.0%
ICICI Bank Ltd., 6.38%, 4/30/22 (b)		7,000		7,195,370
Ireland — 0.1%
Bank of Ireland, 7.38% (b)(m)	EUR	22,225		24,653,699
Italy — 0.1%
Enel SpA:
5.00%, 1/15/75 (b)		7,330		8,539,600
6.50%, 1/10/74 (b)		3,900		4,738,832
UniCredit SpA, 6.75% (b)(m)		539		581,829
				13,860,261
Japan — 0.0%
Nippon Life Insurance Co., 5.10%, 10/16/44 (b)	USD	4,690		4,906,913
Philippines — 0.0%
Royal Capital BV, 6.25% (b)(m)		5,350		5,624,187
South Korea — 0.0%
Shinsegae Co. Ltd., 2.63%, 5/08/45 (b)		4,350		4,306,717
Woori Bank, 5.00%, 6/10/45 (b)		1,160		1,144,448
				5,451,165

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 41

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Preferred Securities		Par   (000)		Value
Spain — 0.3%
Banco Bilbao Vizcaya Argentaria SA:
6.75% (b)(m)	EUR		10,600	$	11,743,384
7.00% (b)(m)			13,400		14,957,691
9.00% (b)(m)	USD		5,600		6,020,000
Banco Popular Espanol SA:
8.25% (b)(m)	EUR		7,200		7,946,665
11.50% (b)(m)			6,900		8,554,037
Banco Santander SA, 6.25% (b)(m)			7,200		7,884,457
Gas Natural Fenosa Finance BV:
3.38% (b)(m)			15,000		15,155,020
4.13% (b)(m)			6,800		7,536,615
Telefonica Europe BV:
4.20% (b)(m)			7,800		8,837,154
5.00% (b)(m)			3,900		4,522,249
5.88% (b)(m)			700		825,290
					93,982,562
Sweden — 0.0%
Swedbank AB, 5.50% (b)(m)	USD		2,000		1,956,876
Volvo Treasury AB, 4.20%, 6/10/75 (b)	EUR		2,360		2,634,997
					4,591,873
Switzerland — 0.1%
Credit Suisse Group AG, 6.25% (a)(b)(m)	USD		7,925		7,598,094
UBS Group AG:
5.75% (b)(m)	EUR		21,003		23,758,271
7.00% (b)(m)	USD		6,550		6,677,725
					38,034,090
United Arab Emirates — 0.1%
National Bank of Abu Dhabi PJSC, 5.25% (b)(m)			8,200		8,308,650
United Kingdom — 0.2%
Centrica PLC:
3.00%, 4/10/50 (b)	EUR		7,125		7,593,815
5.25%, 4/10/40 (b)	GBP		3,575		5,461,508
Coventry Building Society, 6.38% (b)(m)			1,625		2,463,645
HBOS Capital Funding LP, 6.85% (m)	USD		2,296		2,343,158
Lloyds Banking Group PLC, 6.38% (b)(m)	EUR		8,229		9,449,341
Santander UK Group Holdings PLC, 7.38% (b)(m)	GBP		13,995		21,874,345
SSE PLC, 3.88% (b)(m)			3,550		5,396,620
					54,582,432
United States — 0.5%
Bank of America Corp.:
6.10% (b)(m)	USD		37,353		36,886,087
6.25% (b)(m)			5,750		5,724,873
Capital One Financial Corp., 5.55% (b)(m)			14,219		14,094,584
Citigroup, Inc.:
5.90% (b)(m)			23,384		23,033,240
5.95% (b)(m)			24,561		23,706,277
General Electric Capital Corp., 5.25% (b)(m)			7,900		8,097,500
The Goldman Sachs Group, Inc., 5.38% (b)(m)			12,541		12,389,254
JPMorgan Chase & Co., 5.30% (b)(m)			16,400		16,278,640
MetLife, Inc., 5.25% (b)(m)			7,415		7,350,119
					147,560,574
Total Capital Trusts — 2.1%					633,409,263

Preferred Stocks		Shares		Value
Luxembourg — 0.0%
Concrete Investment II SCA, 0.00% (f)			24,318	$	3,578,648
Spain — 0.0%
Santander Finance Preferred SAU, 4.00%			107,000		2,429,970
United Kingdom — 0.0%
Royal Bank of Scotland Group PLC, 6.60%			53,371		1,331,073
Royal Bank of Scotland Group PLC, 6.13%			10,674		262,153
					1,593,226
United States — 0.0%
NBCUniversal Enterprise, Inc., 5.25% (a)(m)			4,900,000		5,212,375
Total Preferred Stocks — 0.0%					12,814,219
Trust Preferreds
Netherlands — 0.0%
RBS Capital Funding Trust V, Series E, 5.90% (m)			285,845		6,926,024
RBS Capital Funding Trust VII, Series G, 6.08% (m)			383,186		9,361,234
					16,287,258
United States — 0.4%
Citigroup Capital XIII, 7.88%, 10/30/40 (b)			2,297,305		59,638,038
GMAC Capital Trust I, 8.13%, 2/15/40 (b)			1,932,000		50,193,360
					109,831,398
Total Trust Preferreds — 0.4%					126,118,656
Total Preferred Securities — 2.5%					772,342,138
Taxable Municipal Bonds		Par   (000)
Alabama Public School & College Authority RB, 5.00%, 1/01/24	USD		10,000		11,946,600
Alachua County Health Facilities Authority RB, 5.00%, 12/01/44			9,265		9,784,674
American Municipal Power, Inc. RB, 5.00%, 2/15/34			7,290		8,144,315
Arizona Health Facilities Authority RB, 5.00%, 12/01/42			10,000		10,770,000
Bay Area Toll Authority RB, 5.00%, 10/01/54			24,555		26,291,284
Board of Governors of Colorado State University System RB, 5.00%, 3/01/45			2,860		3,169,595
Buckeye Tobacco Settlement Financing Authority RB, 5.88%, 6/01/47			6,800		5,299,580
California Educational Facilities Authority RB, 5.00%, 10/01/32			7,880		9,784,675
California Statewide Communities Development Authority RB, 5.50%, 12/01/54			7,840		8,423,766
Casino Reinvestment Development Authority RB, 5.25%, 11/01/44			9,035		9,275,873
Central Texas Turnpike System RB, 5.00%, 8/15/37			5,890		6,355,015
Chicago Board of Education GO, 5.00%, 12/01/42			12,015		10,465,786
Chicago Midway International Airport RB, 5.00%, 1/01/41			3,210		3,347,709
City of Atlanta, GA Water & Wastewater Revenue RB, 5.00%, 11/01/40			5,680		6,333,484
City of Chicago, IL GO, 5.00%, 1/01/40			3,030		2,804,417

See Notes to Financial Statements.

42 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Taxable Municipal Bonds		Par   (000)		Value
City of Detroit, MI Sewage Disposal System RB, AGM, Series D, 0.78%, 7/01/32 (b)	USD		7,000	$	6,180,720
City of Houston, TX Airport System Revenue RB, 5.00%, 7/01/24			3,520		3,981,894
City of Portland, OR Sewer System Revenue RB, 5.00%, 10/01/23			3,555		4,317,299
City of San Jose, CA Airport Revenue RB, AMBAC, 5.00%, 3/01/37			6,400		6,614,656
Commonwealth of Massachusetts RB, 5.00%, 6/15/26			11,150		13,353,240
County of Fairfax, VA GO, 5.00%, 10/01/24			6,560		8,079,099
County of Miami-Dade, FL Aviation Revenue RB:
5.00%, 10/01/30			7,355		8,108,520
5.00%, 10/01/36			7,065		7,629,140
County of Miami-Dade, FL Transit System Sales Surtax Revenue RB, 5.00%, 7/01/42			15,840		17,212,061
County of Miami-Dade, FL Water & Sewer System Revenue RB, 5.00%, 10/01/42			6,510		7,073,896
County of Sacramento, CA Airport System Revenue RB, AGM, 5.25%, 7/01/39			5,395		5,811,170
Dallas/Fort Worth International Airport RB:
5.00%, 11/01/42			12,425		13,014,442
Series A, 5.00%, 11/01/43			25,325		26,455,508
District of Columbia GO:
5.00%, 6/01/30			4,925		5,674,043
5.00%, 6/01/31			5,000		5,735,250
5.00%, 6/01/32			10,800		12,342,888
5.00%, 6/01/38			11,205		12,574,139
District of Columbia Water & Sewer Authority RB, 5.00%, 10/01/27			5,890		6,919,867
Fairfax County Industrial Development Authority RB, 5.00%, 5/15/44			5,000		5,491,700
Florida Department of Environmental Protection RB, 5.00%, 7/01/23			3,585		4,274,503
Health & Educational Facilities Authority of the State of Missouri RB, 5.00%, 1/01/44			10,415		11,547,319
Illinois Finance Authority RB, 5.00%, 8/01/38			8,070		8,827,450
Kansas Development Finance Authority RB, 5.00%, 6/01/46			4,735		5,118,724
Las Vegas Valley Water District GO, 5.00%, 6/01/39			7,800		8,613,072
Long Island Power Authority RB, 5.00%, 9/01/44			10,175		10,997,751
Los Angeles Department of Water & Power RB, 5.00%, 7/01/44			4,535		5,045,324
Los Angeles Unified School District GO, 5.00%, 7/01/22			13,655		16,339,436
Louisiana Public Facilities Authority RB, 5.00%, 10/01/41			5,000		5,256,950
Lower Colorado River Authority RB:
5.00%, 5/15/24			3,685		4,355,117
5.00%, 5/15/26			3,820		4,425,432
5.00%, 5/15/36			4,940		5,379,660
Maryland Health & Higher Educational Facilities Authority RB:
5.00%, 7/01/20			3,430		3,901,831
5.00%, 7/01/21			4,830		5,538,464
5.25%, 7/01/27			4,105		4,679,536
Massachusetts Development Finance Agency RB, 5.00%, 7/01/43			10,045		11,200,075
Massachusetts Educational Financing Authority RB, 5.00%, 1/01/22 (n)			16,440		18,205,492
Metropolitan Transportation Authority RB:
0.00%, 11/15/30 (d)			10,730		6,156,552
5.25%, 11/15/55			13,710		14,949,384
Metropolitan Washington Airports Authority Dulles Toll Road Revenue RB, 5.00%, 10/01/53			7,375		7,629,511
Miami-Dade County Expressway Authority RB, 5.00%, 7/01/39			13,000		14,231,880

Taxable Municipal Bonds		Par   (000)		Value
Miami-Dade County School Board Foundation, Inc. Participation Certificate, 5.00%, 11/01/28	USD		9,590	$	10,736,101
Michigan Finance Authority RB, 5.00%, 6/01/39			4,160		4,469,379
New Jersey Economic Development Authority RB:
5.00%, 6/15/27			5,885		6,160,948
5.00%, 6/15/29			3,710		3,831,651
5.00%, 6/15/30			3,465		3,560,634
5.00%, 6/15/31			4,900		5,020,785
5.00%, 6/15/38			5,000		5,575,800
New Jersey Health Care Facilities Financing Authority RB, 5.00%, 7/01/44			3,445		3,657,798
New Jersey Transportation Trust Fund Authority RB:
5.00%, 6/15/42			18,360		18,602,168
Series B, 5.00%, 6/15/42			9,485		9,594,552
5.00%, 6/15/44			13,560		13,737,365
New Jersey Transportation Trust Fund Authority RB, AMBAC, 0.00%, 12/15/28 (d)			9,965		5,066,306
New York State Dormitory Authority RB:
5.00%, 3/15/32			6,870		7,904,485
5.00%, 3/15/33			7,000		8,000,090
5.00%, 3/15/36			6,870		7,769,627
5.00%, 3/15/37			6,625		7,401,980
5.00%, 3/15/37			4,115		4,633,901
5.00%, 3/15/38			6,180		6,934,454
5.00%, 3/15/39			9,170		10,282,138
New York State Thruway Authority RB, 5.00%, 1/01/31			5,370		6,081,364
New York State Urban Development Corp. RB:
5.00%, 3/15/23			7,200		8,599,392
5.00%, 3/15/35			16,135		18,104,761
5.00%, 3/15/44			5,880		6,476,526
North Carolina Medical Care Commission RB:
5.00%, 6/01/40			11,865		12,848,490
5.00%, 6/01/45			5,715		6,179,001
Orange County Sanitation District RB:
5.00%, 2/01/29			5,880		6,947,514
5.00%, 2/01/34			4,130		4,782,540
Pennsylvania Economic Development Financing Authority RB:
5.00%, 12/31/22			4,620		5,256,405
5.00%, 12/31/38			7,135		7,511,514
Philadelphia Authority for Industrial Development RB, 5.00%, 7/01/42			4,275		4,707,545
Port Authority of New York & New Jersey RB, 5.00%, 10/15/44			2,385		2,579,974
Private Colleges & Universities Authority RB, 5.00%, 4/01/44			3,790		4,015,619
Pulaski County Public Facilities Board, 5.00%, 12/01/39			10,000		10,705,100
Richland County School District No. 2/SC GO, 5.00%, 2/01/22			6,715		7,962,378
Sales Tax Asset Receivable Corp. RB:
5.00%, 10/15/24			24,185		29,753,113
5.00%, 10/15/25			2,835		3,455,270
5.00%, 10/15/28			14,480		17,227,001
5.00%, 10/15/29			11,395		13,453,507
South Carolina State Public Service Authority RB:
5.00%, 12/01/46			19,980		21,592,386
5.00%, 12/01/48			17,170		18,422,551
South Carolina Transportation Infrastructure Bank RB:
5.00%, 10/01/23 (n)			5,650		6,720,393
5.00%, 10/01/24 (n)			5,365		6,413,965
State of California GO:
5.00%, 10/01/25			5,880		7,031,010

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 43

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Taxable Municipal Bonds		Par   (000)		Value
5.00%, 10/01/37	USD		7,120	$	8,035,632
State of Connecticut GO:
5.00%, 3/01/26			6,700		7,744,731
5.00%, 11/15/29			3,780		4,317,327
State of Connecticut Special Tax Revenue RB:
5.00%, 9/01/24			7,015		8,477,978
5.00%, 9/01/33			9,430		10,721,061
State of Louisiana Gasoline & Fuels Tax Revenue RB, 5.00%, 5/01/36			5,595		6,314,069
State of Maryland GO, 5.00%, 8/01/21			7,830		9,323,338
State of Minnesota GO, 5.00%, 8/01/24			10,285		12,585,446
State of Mississippi GO, 5.00%, 10/01/26			5,490		6,607,270
State of New Jersey GO:
5.00%, 6/01/27			12,890		14,701,432
5.00%, 6/01/31			10,000		11,158,900
5.00%, 6/01/32			17,135		19,030,131
State of North Carolina RB:
5.00%, 5/01/24			6,665		8,094,376
5.00%, 5/01/27			5,890		6,955,265
State of Texas GO:
5.00%, 10/01/23			6,180		7,468,839
5.00%, 4/01/30			3,445		3,989,000
State of Washington GO:
5.00%, 7/01/31			14,735		16,984,887
5.00%, 7/01/32			16,250		18,673,525
University of Arizona RB, 5.00%, 8/01/39			6,505		7,194,595
University of California RB, 5.00%, 5/15/37			10,000		11,260,300
University of Kentucky RB:
5.00%, 10/01/21			1,930		2,279,233
5.00%, 10/01/27			11,425		13,548,679
University of Massachusetts Building Authority RB:
5.00%, 11/01/39			5,000		5,539,300
5.00%, 11/01/44			11,420		12,706,349
University of North Carolina at Chapel Hill RB, 3.85%, 12/01/34			8,375		8,306,576
Utah Transit Authority RB, 5.00%, 6/15/24			5,890		7,182,384
Washington Health Care Facilities Authority RB, 5.00%, 10/01/38			6,165		6,722,193
Wisconsin Health & Educational Facilities Authority RB, 5.00%, 8/15/39			5,880		6,302,360
Total Taxable Municipal Bonds — 3.6%					1,127,432,425
U.S. Government Sponsored Agency Securities
Collateralized Mortgage Obligations — 0.2%
Fannie Mae:
Series 2014-C02, Class 1M2, 2.78%, 5/25/24 (b)			32,131		28,896,597
Series 2014-C03, Class 1M2, 3.18%, 7/25/24 (b)			4,285		3,978,044
Series 2014-C01, Class M2, 4.58%, 1/25/24 (b)			8,744		9,002,480
Series 2013-C01, Class M2, 5.43%, 10/25/23 (b)			6,000		6,514,494
Freddie Mac:
Series 2014-DN2, Class M3, 3.78%, 4/25/24 (b)			11,000		10,630,499
Series 2014-HQ2, Class M3, 3.93%, 9/25/24 (b)			9,175		8,967,379
					67,989,493

U.S. Government Sponsored Agency Securities	Par   (000)		Value
Commercial Mortgage-Backed Securities — 0.1%
Fannie Mae, Series 2014-M13, Class A2, 3.02%, 8/25/24 (b)	USD	4,820	$	4,850,771
Freddie Mac, Series K045, Class A2, 3.02%, 1/25/25		8,200		8,250,455
				13,101,226
Interest Only Commercial Mortgage-Backed Securities — 0.1%
Freddie Mac:
Series K045, Class X1, 0.58%, 1/25/25 (b)		80,984		2,991,855
Series K041, Class X1, 0.69%, 10/25/24 (b)		180,278		7,786,404
Series K718, Class X1, 0.77%, 1/25/22 (b)		146,678		5,421,502
Series K044, Class X1, 0.88%, 1/25/25 (b)		42,401		2,482,060
Series K040, Class X1, 0.88%, 9/25/24 (b)		90,939		5,114,953
Series K042, Class X1, 1.19%, 12/25/24 (b)		43,475		3,496,679
Ginnie Mae:
Series 2014-52, Class AI, 0.83%, 8/16/41		49,800		1,411,331
Series 2009-80, Class IO, 0.86%, 9/16/51 (b)		8,538		504,814
Series 2012-120, Class IO, 0.93%, 2/16/53 (b)		20,477		1,390,420
Series 2014-40, Class AI, 1.00%, 2/16/39		61,649		1,748,987
Series 2013-191, Class IA, 1.23%, 7/16/42		33,440		1,318,211
Series 2013-145, Class SI, 6.07%, 4/16/40 (b)		27,659		3,436,304
				37,103,520
Mortgage-Backed Securities — 63.5%
Fannie Mae Mortgage-Backed Securities:
2.50%, 7/01/30 (o)		229,028		231,802,422
3.00%, 7/01/30-7/01/45 (o)		3,540,012		3,585,996,437
3.50%, 9/01/29-7/01/45 (o)		1,622,860		1,690,833,319
4.00%, 7/01/42-7/01/45 (o)		5,797,474		6,141,936,929
4.50%, 5/01/23-7/01/45 (o)		2,078,146		2,247,792,527
5.00%, 7/01/45 (o)		50		55,234
6.00%, 3/01/38		7		7,587
Freddie Mac Mortgage-Backed Securities:
3.00%, 3/01/35-7/01/35 (o)		648,827		659,903,802
3.50%, 2/01/29-2/01/44 (o)		483,658		510,838,969
4.00%, 7/01/42-8/01/42		132,379		141,269,771
4.50%, 6/01/36-3/01/42		117,476		127,117,733
Ginnie Mae Mortgage-Backed Securities:
3.00%, 7/15/45 (o)		170,500		172,105,193
3.50%, 7/15/45 (o)		739,425		767,413,493
4.00%, 1/20/45-7/15/45 (o)		3,070,665		3,253,742,639
				19,530,816,055
Total U.S. Government Sponsored Agency Securities — 63.9%				19,649,010,294
U.S. Treasury Obligations
U.S. Treasury Bonds, 3.00%, 5/15/45 (p)		104,014		101,933,426
U.S. Treasury Inflation Indexed Bonds, 0.75%, 2/15/45		53,899		49,233,186

See Notes to Financial Statements.

44 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

U.S. Treasury Obligations		Par  (000)		Value
U.S. Treasury Inflation Indexed Notes:
0.13%, 4/15/19-7/15/24 (q)	USD		145,814	$	146,624,254
0.25%, 1/15/25 (q)(r)			578,626		567,550,141
U.S. Treasury Notes:
1.00%, 5/15/18			11,365		11,377,433
1.38%, 4/30/20			24,292		24,025,898
1.50%, 5/31/20			46,162		45,909,540
2.38%, 8/15/24 (p)(r)			519,315		522,109,690
2.13%, 5/15/25 (p)			270,684		265,778,049
U.S. Treasury Strips, 0.00%, 5/15/36 (p)			69,895		36,060,228
Total U.S. Treasury Obligations — 5.7%					1,770,601,845
Warrants (s)		Shares
Nippon Meat Packers, Inc. (Issued/exercisable 3/10/14, 1 Share for 1 warrant, Expires 8/28/18)			4,000,000		1,025,452
Takashimaya Co. Ltd. (Issued/exercisable 12/11/13, 1 Share for 1 warrant, Expires 11/19/18, Strike Price JPY 104.41)			2,000,000		111,288
Total Warrants — 0.0%					1,136,740
Total Long-Term Investments (Cost — $40,005,359,329) — 128.3%					39,465,307,668
Short-Term Securities		Par  (000)
Borrowed Bond Agreements — 5.9%
Barclays Bank PLC, (0.30)%, Open (Purchased on 12/18/14 to be repurchased at EUR 5,115,186, collateralized by Buoni Poliennali Del Tesoro, 4.50% due at 3/01/26, par and fair value of EUR 3,950,000 and $5,235,377, respectively)	EUR		5,124		5,711,958
Barclays Bank PLC, (0.16)%, Open (Purchased on 12/17/14 to be repurchased at EUR 58,583,468, collateralized by Republic of France, 1.00% due at 7/25/17, par and fair value of EUR 56,770,000 and $64,789,748, respectively)			58,634		65,368,552
Barclays Bank PLC, 0.45%, Open (Purchased on 6/11/15 to be repurchased at GBP 28,753,246, collateralized by United Kingdom Gilt Inflation Linked Bond, 0.13% due at 3/22/44, par and fair value of GBP 22,013,000 and $46,038,909, respectively)	GBP		28,746		45,166,959
Barclays Capital, Inc., (0.75)%, Open (Purchased on 5/01/15 to be repurchased at $15,380,429, collateralized by Rio Tinto Finance USA PLC, 4.13% due at 8/21/42, par and fair value of USD 16,000,000 and $14,385,488, respectively)	USD		15,400		15,400,000
Barclays Capital, Inc., (0.10)%, Open (Purchased on 6/26/15 to be repurchased at $4,437,438, collateralized by Chesapeake Energy Corp., 4.88% due at 4/15/22, par and fair value of USD 5,000,000 and $4,337,500, respectively)			4,438		4,437,500
Barclays Capital, Inc., 0.05%, 7/08/15 (Purchased on 6/24/15 to be repurchased at $562,551,195, collateralized by U.S. Treasury Notes, 2.75% due at 11/15/23, par and fair value of USD 541,555,000 and $562,963,211, respectively)			562,540		562,540,256

Short-Term Securities		Par  (000)		Value
Borrowed Bond Agreements (continued)
Citigroup Global Markets Ltd., (0.07)%, Open (Purchased on 10/21/13 to be repurchased at EUR 56,623,736, collateralized by Republic of France, 1.00% due at 7/25/17, par and fair value of EUR 56,200,000 and $64,139,226, respectively)	EUR		56,692	$	63,202,914
Citigroup Global Markets, Inc., (0.31)%, Open (Purchased on 6/04/15 to be repurchased at $19,250,554, collateralized by U.S. Treasury Notes, 2.00% due at 2/15/25, par and fair value of USD 19,825,000 and $19,261,217, respectively)	USD		19,255		19,255,031
Citigroup Global Markets, Inc., (0.25)%, Open (Purchased on 3/04/15 to be repurchased at $4,570,283, collateralized by T-Mobile USA, Inc., 6.84% due at 4/28/23, par and fair value of USD 4,250,000 and $4,467,813, respectively)			4,574		4,574,063
Citigroup Global Markets, Inc., (0.15)%, Open (Purchased on 6/01/15 to be repurchased at $4,176,378, collateralized by Time Warner Cable, Inc., 4.50% due at 9/15/42, par and fair value of USD 4,760,000 and $3,882,741, respectively)			4,177		4,176,900
Citigroup Global Markets, Inc., (0.10)%, Open (Purchased on 1/16/15 to be repurchased at $12,790,419, collateralized by Calpine Corp., 5.88% due at 1/15/24, par and fair value of USD 12,072,000 and $12,766,140, respectively)			12,796		12,796,320
Citigroup Global Markets, Inc., (0.10)%, Open (Purchased on 4/14/15 to be repurchased at $41,848,446, collateralized by ConocoPhillips Co., 4.30% due at 11/15/44, par and fair value of USD 37,966,000 and $36,296,217, respectively)			41,858		41,857,515
Citigroup Global Markets, Inc., (0.10)%, Open (Purchased on 4/30/15 to be repurchased at $14,573,740, collateralized by BHP Billiton Finance USA Ltd., 5.00% due at 9/30/43, par and fair value of USD 13,000,000 and $13,494,442, respectively)			14,576		14,576,250
Citigroup Global Markets, Inc., (0.10)%, Open (Purchased on 5/04/15 to be repurchased at $14,369,480, collateralized by Anheuser-Busch InBev Worldwide, Inc., 3.75% due at 7/15/42, par and fair value of USD 15,049,000 and $13,286,822, respectively)			14,372		14,371,795
Citigroup Global Markets, Inc., (0.10)%, Open (Purchased on 5/29/15 to be repurchased at $7,489,313, collateralized by Virgin Media Finance PLC, 6.38% due at 4/15/23, par and fair value of USD 7,000,000 and $7,236,250, respectively)			7,490		7,490,000
Citigroup Global Markets, Inc., (0.10)%, Open (Purchased on 6/18/15 to be repurchased at $4,863,223, collateralized by Iron Mountain, Inc., 5.75% due at 8/15/24, par and fair value of USD 4,739,000 and $4,741,962, respectively)			4,863		4,863,399
Deutsche Bank Securities, Inc., 0.00%, 7/01/15 (Purchased on 6/15/15 to be repurchased at $133,818,750, collateralized by U.S. Treasury Notes, 1.50% due at 5/31/20, par and fair value of USD 135,000,000 and $134,261,685, respectively)			133,819		133,818,750

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 45

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Short-Term Securities		Par  (000)		Value
Borrowed Bond Agreements (continued)
Deutsche Bank Securities, Inc., 0.00%, Open (Purchased on 6/25/15 to be repurchased at $3,260,163, collateralized by U.S. Treasury Bonds, 2.50% due at 2/15/45, par and fair value of USD 3,710,000 and $3,265,097, respectively)	USD		3,260	$	3,260,163
Deutsche Bank Securities, Inc., 0.08%, 7/20/15			37,154		37,153,699
(Purchased on 5/18/15 to be repurchased at $37,158,653, collateralized by U.S. Treasury Strips, 0.00% due at 2/15/36, par and fair value of USD 67,399,000 and $36,559,239, respectively)
Deutsche Bank Securities, Inc., 0.08%, Open (Purchased on 6/16/15 to be repurchased at $33,294,672, collateralized by U.S. Treasury Notes, 1.88% due at 5/31/22, par and fair value of USD 33,715,000 and $33,340,966, respectively)			33,294		33,293,562
J.P. Morgan Securities LLC, 0.00%, 7/15/15 (Purchased on 6/11/15 to be repurchased at $97,875,000, collateralized by U.S. Treasury Notes, 2.13% due at 5/15/25, par and fair value of USD 100,000,000 and $98,187,500, respectively)			97,875		97,875,000
J.P. Morgan Securities LLC, 0.00%, 7/15/15 (Purchased on 6/12/15 to be repurchased at $97,875,000, collateralized by U.S. Treasury Notes, 2.13% due at 5/15/25, par and fair value of USD 100,000,000 and $98,187,500, respectively)			97,875		97,875,000
J.P. Morgan Securities LLC, 0.00%, 7/01/15 (Purchased on 6/24/15 to be repurchased at $86,385,900, collateralized by U.S. Treasury Notes, 0.75% due at 4/15/18, par and fair value of USD 86,820,000 and $86,365,584, respectively)			86,386		86,385,900
JPMorgan Chase Bank N.A., (0.50)%, Open (Purchased on 6/15/15 to be repurchased at EUR 3,191,653, collateralized by Portugal Obrigacoes do Tesouro OT, 4.35% due at 10/16/17, par and fair value of EUR 2,600,000 and $3,133,983, respectively)	EUR		3,192		3,558,912
JPMorgan Chase Bank N.A., (0.18)%, Open (Purchased on 12/16/14 to be repurchased at EUR 3,113,487, collateralized by Bundesrepublik Deutschland, 2.50% due at 1/04/21, par and fair value of EUR 2,659,000 and $3,340,425, respectively)			3,117		3,474,465
JPMorgan Chase Bank N.A., (0.18)%, Open (Purchased on 12/16/14 to be repurchased at EUR 6,129,478, collateralized by Bundesrepublik Deutschland, 0.75% due at 2/24/17, par and fair value of EUR 5,963,000 and $6,756,954, respectively)			6,135		6,840,131
JPMorgan Chase Bank N.A., 0.00%, 7/06/15 (Purchased on 6/19/15 to be repurchased at EUR 11,137,748, collateralized by Republic of France, 3.00% due at 4/25/22, par and fair value of EUR 9,550,000 and $12,320,605, respectively)			11,138		12,416,941
JPMorgan Chase Bank N.A., 0.00%, 7/06/15 (Purchased on 6/19/15 to be repurchased at EUR 72,293,038, collateralized by Buoni Poliennali Del Tesoro, 3.75% due at 9/01/24, par and fair value of EUR 63,150,000 and $78,884,205, respectively)			72,293		80,596,043

Short-Term Securities		Par  (000)		Value
Borrowed Bond Agreements (concluded)
JPMorgan Chase Bank N.A., 0.00%, 7/06/15 (Purchased on 6/26/15 to be repurchased at EUR 8,523,819, collateralized by Buoni Poliennali Del Tesoro, 4.50% due at 3/01/24, par and fair value of EUR 6,950,000 and $9,138,718, respectively)	EUR		8,524	$	9,502,797
Merrill Lynch, Pierce, Fenner & Smith, Inc., (0.01)%, Open	USD		1,636		1,635,900
(Purchased on 6/10/15 to be repurchased at $1,635,890, collateralized by U.S. Treasury Notes, 0.63% due at 5/31/17, par and fair value of USD 1,640,000 and $1,639,744, respectively)
Merrill Lynch, Pierce, Fenner & Smith, Inc., 0.22%, Open			19,065		19,064,699
(Purchased on 4/23/15 to be repurchased at $19,072,739, collateralized by U.S. Treasury Notes, 2.25% due at 11/15/24, par and fair value of USD 18,420,000 and $18,307,749, respectively)
Morgan Stanley & Co. International PLC, (0.35)%, Open	EUR		8,956		9,984,947
(Purchased on 5/05/15 to be repurchased at EUR 8,951,509, collateralized by Portugal Obrigacoes do Tesouro OT, 4.35% due at 10/16/17, par and fair value of EUR 7,600,000 and $9,160,873, respectively)
Morgan Stanley & Co. International PLC, 0.00%, 7/06/15			145,758		162,498,674
(Purchased on 6/19/15 to be repurchased at EUR 145,758,061, collateralized by Buoni Poliennali Del Tesoro, 4.50% due at 3/01/24, par and fair value of EUR 122,090,000 and $160,538,999, respectively)
Morgan Stanley & Co. International PLC, 0.00%, 7/06/15			82,688		92,184,710
(Purchased on 6/19/15 to be repurchased at EUR 82,687,841, collateralized by Buoni Poliennali Del Tesoro, 5.00% due at 3/01/25, par and fair value of EUR 66,400,000 and $90,738,622, respectively)
RBC Capital Markets, LLC, (0.50)%, Open (Purchased on 6/19/15 to be repurchased at $9,804,428, collateralized by AT&T Inc., 3.90% due at 3/11/24, par and fair value of USD 9,685,000 and $9,767,129, respectively)	USD		9,806		9,806,063
RBC Capital Markets, LLC, (0.40)%, Open (Purchased on 3/09/15 to be repurchased at $1,777,286, collateralized by ArcelorMittal, 7.00% due at 2/25/22, par and fair value of USD 1,596,000 and $1,719,690, respectively)			1,780		1,779,540
RBC Capital Markets, LLC, (0.25)%, Open (Purchased on 6/01/15 to be repurchased at $7,873,359, collateralized by MGM Resorts International, 6.00% due at 3/15/23, par and fair value of USD 7,500,000 and $7,593,750, respectively)			7,875		7,875,000
RBC Capital Markets, LLC, (0.10)%, Open			9,290		9,290,240
(Purchased on 5/05/15 to be repurchased at $9,288,769, collateralized by International Business Machines Corp., 4.00% due at 6/20/42, par and fair value of USD 9,728,000 and $8,770,988, respectively)
					1,805,960,548

See Notes to Financial Statements.

46 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued)	BlackRock Strategic Income Opportunities Portfolio
	(Percentages shown are based on Net Assets)

Short-Term Securities		Shares		Value
Money Market Funds — 22.4%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.07% (k)(t)			6,907,663,419	$	6,907,663,419
Total Short-Term Securities (Cost — $8,743,670,261) — 28.3%					8,713,623,967
Options Purchased
(Cost — $132,760,642) — 0.4%					138,522,075
Total Investments Before Options Written, TBA Sale Commitments, Borrowed Bonds and Investments Sold Short (Cost — $48,881,790,232) — 157.0%					48,317,453,710
Options Written
(Premiums Received — $ 77,694,570) — (0.3)%					(103,175,061	)
TBA Sale Commitments (o)		Par (000)
Fannie Mae Mortgage-Backed Securities:
2.50%, 7/01/30	USD		317,802		(321,651,822	)
3.00%, 7/01/30-7/01/45			4,774,665		(4,762,732,363	)
3.50%, 7/01/30-7/01/45			2,091,180		(2,173,203,935	)
4.00%, 7/01/45			3,770,722		(3,995,006,053	)
4.50%, 7/01/45			2,151,642		(2,324,179,985	)
5.00%, 7/01/45			50		(55,234	)
Freddie Mac Mortgage-Backed Securities:
3.00%, 7/01/45			40,246		(39,995,881	)
3.50%, 7/01/45			13,000		(13,373,750	)
4.50%, 7/01/45			92,200		(99,563,037	)
Ginnie Mae Mortgage-Backed Securities:
3.00%, 7/15/45			396,075		(399,812,381	)
4.00%, 7/15/45			1,733,275		(1,836,831,756	)
Total TBA Sale Commitments (Proceeds — $15,970,124,959) — (51.9)%					(15,966,406,197	)
Borrowed Bonds
Corporate Bonds — (0.5)%
Anheuser-Busch InBev Worldwide, Inc., 3.75%, 7/15/42			15,049		(13,286,822	)
ArcelorMittal, 7.00%, 2/25/22			1,596		(1,719,690	)
AT&T Inc., 3.90%, 3/11/24			9,685		(9,767,129	)
BHP Billiton Finance USA Ltd., 5.00%, 9/30/43			13,000		(13,494,442	)
Calpine Corp., 5.88%, 1/15/24			12,072		(12,766,140	)
Chesapeake Energy Corp., 4.88%, 4/15/22			5,000		(4,337,500	)
ConocoPhillips Co., 4.30%, 11/15/44			37,966		(36,296,217	)
International Business Machines Corp., 4.00%, 6/20/42			9,728		(8,770,988	)
Iron Mountain, Inc., 5.75%, 8/15/24			4,739		(4,741,962	)
MGM Resorts International, 6.00%, 3/15/23			7,500		(7,593,750	)
Rio Tinto Finance USA PLC, 4.13%, 8/21/42			16,000		(14,385,488	)

Borrowed Bonds		Par  (000)		Value
Time Warner Cable, Inc., 4.50%, 9/15/42	USD		4,760	$	(3,882,741	)
T-Mobile USA, Inc., 6.84%, 4/28/23			4,250		(4,467,813	)
Virgin Media Finance PLC, 6.38%, 4/15/23			7,000		(7,236,250	)
					(142,746,932	)
Foreign Government Obligations — (1.8)%
Bundesrepublik Deutschland,
0.75%, 2/24/17	EUR		5,963		(6,756,954	)
2.50%, 1/04/21			2,659		(3,340,425	)
Buoni Poliennali Del Tesoro,
4.50%, 3/01/24			129,040		(169,677,717	)
3.75%, 9/01/24			63,150		(78,884,205	)
5.00%, 3/01/25			66,400		(90,738,622	)
4.50%, 3/01/26			3,950		(5,235,377	)
Portugal Obrigacoes do Tesouro OT, 4.35%, 10/16/17			10,200		(12,294,856	)
Republic of France,
1.00%, 7/25/17			112,970		(128,928,974	)
3.00%, 4/25/22			9,550		(12,320,605	)
United Kingdom Gilt Inflation Linked Bond, 0.13%, 3/22/44	GBP		22,013		(46,038,909	)
					(554,216,644	)
U.S. Treasury Obligations — (3.5)%
U.S. Treasury Bonds, 2.50%, 2/15/45	USD		3,710		(3,265,097	)
U.S. Treasury Notes,
0.63%, 5/31/17			1,640		(1,639,744	)
0.75%, 4/15/18			86,820		(86,365,584	)
1.50%, 5/31/20			135,000		(134,261,685	)
1.88%, 5/31/22			33,715		(33,340,966	)
2.75%, 11/15/23			541,555		(562,963,211	)
2.25%, 11/15/24			18,420		(18,307,749	)
2.00%, 2/15/25			19,825		(19,261,217	)
2.13%, 5/15/25			200,000		(196,375,000	)
U.S. Treasury Strips, 0.00%, 2/15/36			67,399		(36,559,239	)
					(1,092,339,492	)
Total Borrowed Bonds (Proceeds — $1,856,203,326) — (5.8)%					(1,789,303,068	)
Investments Sold Short
Corporate Bonds — 0.0%
International Business Machines Corp., 4.00%,6/20/42			10,000		(9,016,230	)
Total Investments Sold Short (Proceeds — $9,029,600) — (0.0)%					(9,016,230	)
Total Investments Net of Options Written, TBA     Sale Commitments, Borrowed Bonds and     Investments Sold Short — 99.0%				30,449,553,154
Other Assets Less Liabilities — 1.0%					317,686,049
Net Assets — 100.0%				$	30,767,239,203

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 47

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

      Notes to Consolidated Schedule of Investments

(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. Rate shown is as of report date.

(c) Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown is as of report date.

(d) Zero-coupon bond.

(e) Par is less than $500.

(f) Non-income producing security.

(g) Convertible security.

(h) Issuer filed for bankruptcy and/or is in default of interest payments.

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

(j) U.S. dollar denominated security issued by foreign domiciled entity.

(k) During the period ended June 30, 2015, investments in issuers considered to be an affiliate of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at December 31, 2014		Shares Purchased			Shares Sold			Shares Held at June 30, 2015		Value at June 30, 2015		Income		Realized Loss
BlackRock Liquidity Funds,
TempFund, Institutional Class		5,899,008,231		1,008,655,188	*		—			6,907,663,419	$	6,907,663,419	$	1,854,518		—
iShares Gold Trust		10,300,000		—			—			10,300,000	$	116,802,000		—		—
iShares iBoxx $ High Yield Corporate Bond ETF		535,000		5,577,214			(3,810,424	)		2,301,790	$	204,398,952	$	7,063,189	$	(5,561,731	)

*Represents net shares purchased.

(l) All or a portion of security is held by a wholly owned subsidiary.

(m) Security is perpetual in nature and has no stated maturity date.

(n) When-issued security. Unsettled when-issued transactions were as follows:

Counterparty	Value		Unrealized Appreciation (Depreciation)
Morgan Stanley & Co. LLC		$18,205,492	$(34,359)
Wells Fargo Securities, LLC		$13,134,358	$ 29,092

(o) Represents or includes a TBA transaction. As of June 30, 2015, unsettled TBA transactions were as follows:

Counterparty	Value			Unrealized Appreciation (Depreciation)
Barclays Capital, Inc.	$	(181,936,898	)	$	849,656
BB&T Securities, LLC	$	(35,430,408	)	$	(20,113	)
BNP Paribas Securities Corp.	$	33,403,359		$	(11,493	)
Citigroup Global Markets, Inc.	$	(514,563,133	)	$	4,117,314
Credit Suisse Securities (USA) LLC	$	64,149,851		$	(1,353,330	)
Deutsche Bank Securities, Inc.	$	328,943,881		$	(545,500	)
Goldman Sachs & Co.	$	371,735,297		$	7,511,895
J.P. Morgan Securities LLC	$	(2,092,756,533	)	$	4,744,414
Jefferies LLC	$	(54,303,683	)	$	(8,908	)
Merrill Lynch, Pierce, Fenner & Smith, Inc.	$	817,920,763		$	(855,033	)
Morgan Stanley & Co. LLC	$	(498,270,231	)	$	(912,196	)
Nomura Securities International, Inc.	$	(7,116,384	)	$	(305,424	)
RBC Capital Markets, LLC	$	(134,596,010	)	$	1,703,115
Wells Fargo Securities, LLC	$	55,380,288		$	(462,548	)

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

(q) All or a portion of security has been pledged as collateral in connection with outstanding borrowed bonds.

(r) All or a portion of security has been pledged as collateral in connection with outstanding OTC derivatives.

(s) Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any.

(t) Represents the current yield as of report date.

See Notes to Financial Statements.

48 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

• As of June 30, 2015, reverse repurchase agreements outstanding were as follows:

Counterparty	Interest Rate			Trade Date		Maturity Date	Face Value		Face Value Including Accrued Interest
Deutsche Bank Securities, Inc.		0.21	%		5/18/15	7/20/15	$	36,607,506	$	36,616,261
J.P. Morgan Securities LLC		0.10	%		6/24/15	7/01/15		72,750,000		72,751,415
Barclays Capital, Inc.		0.20	%		6/24/15	7/08/15		505,000,000		505,019,639
Barclays Capital, Inc.		(0.25	%)		6/30/15	7/01/15		197,000,000		196,998,632
Merrill Lynch, Pierce, Fenner & Smith, Inc.		(0.49	%)		6/30/15	7/01/15		45,931,190		45,930,565
Total							$	857,288,696	$	857,316,512

• The type of underlying collateral and the remaining maturity of open reverse repurchase agreements in relation to the reverse repurchase agreements on the Statements of Assets and Liabilities is as follows:

		Remaining Contracted Maturity of the  Agreements
Reverse Repurchase Agreements	Open/Demand1	Overnight	Up to 30 days	31-90 days	Greater Than 90 Days But Less Than One Year		Total
U.S. Treasury Obligations	—	$242,929,197	$577,771,054	$36,616,261		—		$857,316,512

¹ Certain agreements have no stated maturity an can be terminated by either party at any time.

• As of June 30, 2015, financial futures contracts outstanding were as follows:

Contracts Long (Short)	Issue	Exchange	Expiration	Notional Value			Unrealized Appreciation (Depreciation)
859	CBOE Volatility Index	Chicago Board Options	July 2015		USD	14,882,175	$	1,416,371
(180)	SGX CNX Nifty Index	Singapore	July 2015		USD	3,018,420		(64,729	)
	Euro-Bund 8.5 to 10.5-Year
	Bonds Futures Put Options
285	Strike Price EUR 156	Eurex	August 2015		USD	762,559		357,165
792	Australian Government Bonds (10 Year)	Sydney	September 2015		USD	99,207,063		477,258
13,561	Australian Government Bonds (3 Year)	Sydney	September 2015		USD	1,509,929,685		1,072,524
2,234	Canadian Bankers Acceptance	Montreal	September 2015		USD	443,334,528		362,679
48	DAX Index Futures	Eurex	September 2015		USD	14,718,054		(122,612	)
1,686	E-Mini S&P 500 Futures	Chicago Mercantile	September 2015		USD	173,185,920		(179,280	)
(1,326)	Euro Currency Futures	Chicago Mercantile	September 2015		USD	184,910,700		2,005,575
(743)	Euro Dollar Futures	Chicago Mercantile	September 2015		USD	185,072,012		7,569
2,022	Euro STOXX 50 Index	Eurex	September 2015		USD	77,455,373		(3,815,815	)
(10,428)	Euro-Bobl	Eurex	September 2015		USD	1,506,455,261		186,759
	Euro-BTP Italian Government
1,931	Bonds Futures	Eurex	September 2015		USD	280,313,396		(1,641,251	)
(597)	Euro-Bund	Eurex	September 2015		USD	101,166,135		(230,704	)
1,178	Euro-Schatz	Eurex	September 2015		USD	146,136,982		123,904
221	FTSE/MIB Index Futures	Borsa-Italiana	September 2015		USD	27,807,939		379,429
(618)	Japanese Government Bonds (10 Year)	Osaka	September 2015		USD	742,145,361		(1,392,409	)
(1,462)	JPY Currency Futures	Chicago Mercantile	September 2015		USD	149,535,188		(1,279,250	)
941	Korea Treasury Bonds (10 Year)	Korea Exchange	September 2015		USD	103,265,776		279,762
(4,653)	Long Gilt British	NYSE Liffe	September 2015		USD	846,099,683		8,273,646
(183)	Nikkei 225 Index	Osaka	September 2015		USD	30,249,540		(78,114	)
1,700	Nikkei 225 Index	Chicago Mercantile	September 2015		USD	171,785,000		(1,190,000	)
	Short Term Euro-BTP Italian
(1,853)	Government Bonds Futures	Eurex	September 2015		USD	230,421,659		505,462
(260)	U.S. Treasury Bonds (30 Year)	Chicago Board of Trade	September 2015		USD	39,219,375		14,440
(16,744)	U.S. Treasury Notes (10 Year)	Chicago Board of Trade	September 2015		USD	2,112,621,875		3,835,329
(6,790)	U.S. Treasury Notes (2 Year)	Chicago Board of Trade	September 2015		USD	1,486,585,625		(2,526,016	)
(15,252)	U.S. Treasury Notes (5 Year)	Chicago Board of Trade	September 2015		USD	1,818,920,164		(5,467,192	)
(221)	U.S. Ultra Treasury Bonds	Chicago Board of Trade	September 2015		USD	34,047,813		(338,345	)
(5,641)	Euro Dollar Futures	Chicago Mercantile	December 2015		USD	1,402,705,163		(640,503	)
(7,327)	Euro Dollar Futures	Chicago Mercantile	March 2016		USD	1,818,561,400		(1,199,737	)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 49

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, financial futures contracts outstanding were as follows: (concluded)

Contracts Long (Short)	Issue	Exchange	Expiration	Notional Value			Unrealized Appreciation (Depreciation)
(743)	Euro Dollar Futures	Chicago Mercantile	June 2016		USD	184,031,812	$	(46,437	)
(2,220)	Canadian Bankers Acceptance	Montreal	September 2016		USD	440,356,285		(1,558,789	)
(3,741)	Euro Dollar Futures	Chicago Mercantile	September 2016		USD	924,494,625		(1,293,702	)
(7,320)	Euro Dollar Futures	Chicago Mercantile	December 2016		USD	1,804,929,000		(1,469,561	)
(15,432)	Three Month Sterling	NYSE Liffe	December 2016		USD	2,989,398,329		2,483,872
(2,152)	Euro Dollar Futures	Chicago Mercantile	March 2017		USD	529,634,100		(168,775	)
(2,152)	Euro Dollar Futures	Chicago Mercantile	June 2017		USD	528,665,700		81,145
600	Euro Dollar Futures	Chicago Mercantile	September 2017		USD	147,165,000		22,500
Total							$	(2,817,832	)

• As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows:

Currency Purchased		Currency Sold			Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
EUR	3,054,466		USD	3,473,453	Goldman Sachs International		7/01/15	$	(68,128	)
USD	2,439,223		EUR	2,192,427	Goldman Sachs International		7/01/15		(5,043	)
USD	6,416,891		EUR	5,848,766	Goldman Sachs International		7/01/15		(103,707	)
USD	958,168		EUR	855,197	HSBC Bank PLC		7/01/15		4,738
USD	3,797,977		EUR	3,372,807	Standard Chartered Bank		7/01/15		37,745
BRL	20,059,818		USD	6,358,104	BNP Paribas S.A.		7/02/15		89,020
BRL	23,657,958		USD	7,625,204	Citibank N.A.		7/02/15		(15,942	)
BRL	23,754,249		USD	7,407,000	Citibank N.A.		7/02/15		227,496
BRL	23,990,808		USD	7,732,485	Citibank N.A.		7/02/15		(16,166	)
BRL	35,462,408		USD	11,429,900	Citibank N.A.		7/02/15		(23,896	)
BRL	19,498,043		USD	6,170,267	Deutsche Bank AG		7/02/15		96,306
BRL	17,213,664		USD	5,408,000	Goldman Sachs International		7/02/15		124,385
BRL	19,736,184		USD	6,361,176	Goldman Sachs International		7/02/15		(13,299	)
BRL	23,435,899		USD	7,427,000	Goldman Sachs International		7/02/15		105,179
BRL	23,475,786		USD	7,422,000	Goldman Sachs International		7/02/15		122,999
BRL	29,122,700		USD	9,260,000	Goldman Sachs International		7/02/15		99,889
BRL	29,242,436		USD	9,255,400	Goldman Sachs International		7/02/15		142,971
BRL	29,444,170		USD	9,265,000	Goldman Sachs International		7/02/15		198,207
BRL	40,872,572		USD	13,173,652	Goldman Sachs International		7/02/15		(27,541	)
BRL	46,785,000		USD	15,000,000	Goldman Sachs International		7/02/15		36,463
BRL	46,845,000		USD	15,098,627	Goldman Sachs International		7/02/15		(31,566	)
BRL	97,536,490		USD	30,851,333	Goldman Sachs International		7/02/15		496,402
BRL	17,142,278		USD	5,525,133	Royal Bank of Scotland PLC		7/02/15		(11,551	)
BRL	22,171,436		USD	7,113,069	UBS AG		7/02/15		18,074
BRL	23,643,144		USD	7,407,000	UBS AG		7/02/15		191,787
BRL	200,986,157		USD	64,779,913	UBS AG		7/02/15		(135,431	)
CLP	9,625,615,996		USD	15,062,619	BNP Paribas S.A.		7/02/15		(5,537	)
CLP	7,650,062,490		USD	11,971,179	Credit Suisse International		7/02/15		(4,401	)
CLP	9,639,190,595		USD	15,083,861	Credit Suisse International		7/02/15		(5,545	)
CLP	9,682,073,936		USD	15,150,967	Credit Suisse International		7/02/15		(5,570	)
CLP	13,433,574,245		USD	21,589,750	Credit Suisse International		7/02/15		(580,017	)
CLP	1,946,932,813		USD	3,084,250	Deutsche Bank AG		7/02/15		(39,302	)
CLP	28,630,654,360		USD	46,277,000	Deutsche Bank AG		7/02/15		(1,499,460	)
CLP	7,849,954,500		USD	12,283,980	Goldman Sachs International		7/02/15		(4,516	)
EUR	20,530,200		PLN	86,021,538	Goldman Sachs International		7/02/15		11,979
PLN	111,625,161		EUR	26,689,260	BNP Paribas S.A.		7/02/15		(69,516	)
PLN	50,944,049		EUR	12,318,120	Goldman Sachs International		7/02/15		(185,069	)

See Notes to Financial Statements.

50 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows: (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
TRY	250,000,000	USD	94,126,506	BNP Paribas S.A.		7/02/15	$	(905,716	)
TRY	272,300,000	USD	102,522,590	BNP Paribas S.A.		7/02/15		(986,506	)
TRY	276,660,000	USD	102,417,355	Deutsche Bank AG		7/02/15		744,501
USD	6,465,486	BRL	20,059,818	BNP Paribas S.A.		7/02/15		13,517
USD	7,407,000	BRL	23,657,958	Citibank N.A.		7/02/15		(196,548	)
USD	7,408,000	BRL	23,990,808	Citibank N.A.		7/02/15		(302,524	)
USD	7,656,240	BRL	23,754,249	Citibank N.A.		7/02/15		16,006
USD	11,115,000	BRL	35,462,408	Citibank N.A.		7/02/15		(282,439	)
USD	6,284,420	BRL	19,498,043	Deutsche Bank AG		7/02/15		13,138
USD	5,548,142	BRL	17,213,664	Goldman Sachs International		7/02/15		11,599
USD	6,222,000	BRL	19,736,184	Goldman Sachs International		7/02/15		(121,110	)
USD	7,553,632	BRL	23,435,899	Goldman Sachs International		7/02/15		15,792
USD	7,566,488	BRL	23,475,786	Goldman Sachs International		7/02/15		15,819
USD	9,386,547	BRL	29,122,700	Goldman Sachs International		7/02/15		19,624
USD	9,425,139	BRL	29,242,436	Goldman Sachs International		7/02/15		19,705
USD	9,490,160	BRL	29,444,170	Goldman Sachs International		7/02/15		19,840
USD	13,117,000	BRL	40,872,572	Goldman Sachs International		7/02/15		(19,238	)
USD	15,000,000	BRL	46,845,000	Goldman Sachs International		7/02/15		(55,746	)
USD	15,079,288	BRL	46,785,000	Goldman Sachs International		7/02/15		31,525
USD	31,437,017	BRL	97,536,490	Goldman Sachs International		7/02/15		65,723
USD	5,408,000	BRL	17,142,278	Royal Bank of Scotland PLC		7/02/15		(101,442	)
USD	7,146,083	BRL	22,171,436	UBS AG		7/02/15		14,940
USD	7,620,429	BRL	23,643,144	UBS AG		7/02/15		15,932
USD	62,667,173	BRL	200,986,157	UBS AG		7/02/15		(1,928,762	)
USD	15,425,667	CLP	9,625,615,996	BNP Paribas S.A.		7/02/15		371,473
USD	12,341,000	CLP	7,650,062,490	Credit Suisse International		7/02/15		376,517
USD	15,425,667	CLP	9,639,190,595	Credit Suisse International		7/02/15		350,243
USD	15,425,667	CLP	9,682,073,936	Credit Suisse International		7/02/15		283,175
USD	21,021,492	CLP	13,433,574,245	Credit Suisse International		7/02/15		7,728
USD	3,046,653	CLP	1,946,932,813	Deutsche Bank AG		7/02/15		1,120
USD	44,802,601	CLP	28,630,654,360	Deutsche Bank AG		7/02/15		16,470
USD	12,333,000	CLP	7,849,954,500	Goldman Sachs International		7/02/15		53,536
USD	138,409,213	EUR	128,099,000	Morgan Stanley Capital Services LLC		7/02/15		(4,406,138	)
USD	33,039,987	MXN	502,942,607	JPMorgan Chase Bank N.A.		7/02/15		1,045,938
USD	41,585,883	TRY	110,941,406	Citibank N.A.		7/02/15		217,701
USD	105,024,273	TRY	272,453,970	Deutsche Bank AG		7/02/15		3,430,776
USD	106,662,040	TRY	276,660,000	Deutsche Bank AG		7/02/15		3,500,185
USD	157,518,204	TRY	408,680,980	Deutsche Bank AG		7/02/15		5,127,948
EUR	22,806,000	MXN	396,943,858	Royal Bank of Scotland PLC		7/06/15		183,978
EUR	3,772,000	USD	4,281,341	BNP Paribas S.A.		7/06/15		(75,773	)
EUR	87,200,000	USD	98,403,460	Citibank N.A.		7/06/15		(1,180,362	)
EUR	42,478,000	USD	47,413,949	Goldman Sachs International		7/06/15		(53,366	)
EUR	42,992,000	USD	48,764,022	Goldman Sachs International		7/06/15		(830,358	)
EUR	57,000,000	USD	64,070,680	Goldman Sachs International		7/06/15		(518,884	)
IDR	168,773,000,000	USD	12,595,000	Standard Chartered Bank		7/06/15		47,930
KRW	7,354,128,600	USD	6,783,000	JPMorgan Chase Bank N.A.		7/06/15		(190,975	)
MXN	125,502,593	USD	8,168,761	Citibank N.A.		7/06/15		(187,491	)
USD	21,070,879	EUR	19,278,000	Goldman Sachs International		7/06/15		(423,007	)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 51

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows: (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	22,159,566	EUR	20,237,000	Goldman Sachs International		7/06/15	$	(403,551	)
USD	44,962,641	EUR	40,286,000	Goldman Sachs International		7/06/15		46,015
USD	69,594,484	EUR	62,377,000	Goldman Sachs International		7/06/15		47,635
USD	34,890,268	EUR	31,000,000	Morgan Stanley & Co. International PLC		7/06/15		327,011
USD	42,139,538	EUR	37,608,000	Royal Bank of Scotland PLC		7/06/15		208,732
USD	103,228,428	EUR	92,484,000	Royal Bank of Scotland PLC		7/06/15		113,966
USD	9,782,411	EUR	8,635,000	Standard Chartered Bank		7/06/15		154,872
USD	139,821,233	EUR	124,323,000	Standard Chartered Bank		7/06/15		1,208,076
USD	11,970,972	EUR	10,600,000	State Street Bank and Trust Co.		7/06/15		152,568
USD	4,001,965,846	EUR	3,645,209,000	UBS AG		7/06/15		(62,237,300	)
USD	916,857	GBP	582,000	Morgan Stanley & Co. International PLC		7/06/15		2,435
USD	12,595,000	IDR	167,388,000,000	BNP Paribas S.A.		7/06/15		55,855
TRY	42,604,250	USD	16,000,942	Citibank N.A.		7/07/15		(139,747	)
COP	24,158,681,610	USD	9,303,000	Credit Suisse International		7/09/15		(39,080	)
IDR	171,671,000,000	USD	12,800,754	Standard Chartered Bank		7/09/15		51,222
KRW	7,132,008,900	USD	6,339,000	BNP Paribas S.A.		7/09/15		53,465
USD	9,303,000	COP	24,180,357,600	Credit Suisse International		7/09/15		30,768
USD	12,800,754	IDR	173,002,000,000	BNP Paribas S.A.		7/09/15		(150,887	)
USD	4,568,042	JPY	560,888,888	JPMorgan Chase Bank N.A.		7/09/15		(15,467	)
USD	26,961,605	JPY	3,345,935,205	UBS AG		7/09/15		(380,934	)
USD	6,339,000	KRW	7,128,839,400	BNP Paribas S.A.		7/09/15		(50,624	)
USD	63,526,513	MXN	968,131,474	Goldman Sachs International		7/09/15		1,972,688
KRW	14,224,637,280	USD	12,676,800	BNP Paribas S.A.		7/10/15		72,528
USD	8,536,210	CNY	52,735,000	HSBC Bank PLC		7/10/15		38,297
USD	11,954,294	INR	770,000,000	Citibank N.A.		7/10/15		(112,307	)
USD	26,271,897	INR	1,688,888,888	HSBC Bank PLC		7/10/15		(194,530	)
USD	11,968,602	INR	770,000,000	Standard Chartered Bank		7/10/15		(98,000	)
USD	35,766,819	INR	2,310,000,000	Standard Chartered Bank		7/10/15		(432,985	)
USD	12,676,800	KRW	14,118,152,160	Bank of America N.A.		7/10/15		22,913
USD	8,894,900	THB	299,989,411	The Bank of New York Mellon		7/10/15		16,256
TRY	12,320,379	USD	4,919,377	Deutsche Bank AG		7/13/15		(341,327	)
USD	5,197,156	TRY	12,320,379	Deutsche Bank AG		7/13/15		619,106
RUB	142,565,624	USD	2,792,120	Citibank N.A.		7/14/15		(223,424	)
RUB	142,565,623	USD	2,790,480	Goldman Sachs International		7/14/15		(221,784	)
RUB	285,454,388	USD	5,591,663	JPMorgan Chase Bank N.A.		7/14/15		(448,449	)
USD	4,970,851	RUB	260,870,237	Citibank N.A.		7/14/15		270,585
USD	2,561,468	RUB	134,092,858	JPMorgan Chase Bank N.A.		7/14/15		145,431
USD	2,701,996	RUB	141,800,754	JPMorgan Chase Bank N.A.		7/14/15		147,081
USD	5,381,427	RUB	282,471,080	Morgan Stanley & Co. International PLC		7/14/15		291,965
USD	9,552,919	RUB	524,216,431	Morgan Stanley & Co. International PLC		7/14/15		107,776
USD	9,816,157	RUB	526,636,837	Morgan Stanley & Co. International PLC		7/14/15		327,405
USD	9,839,013	RUB	546,729,367	Morgan Stanley & Co. International PLC		7/14/15		(11,759	)

See Notes to Financial Statements.

52 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows: (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	9,895,959	RUB	526,959,816	Morgan Stanley & Co. International PLC		7/14/15	$	401,387
USD	34,197,189	MXN	521,052,236	Goldman Sachs International		7/16/15		1,086,211
EUR	22,806,000	MXN	400,029,259	Royal Bank of Canada		7/20/15		19,570
MXN	368,136,396	USD	23,412,761	Barclays Bank PLC		7/20/15		(26,103	)
MXN	703,331,314	USD	45,904,860	Citibank N.A.		7/20/15		(1,224,223	)
USD	4,548,198	EUR	4,071,979	Goldman Sachs International		7/20/15		7,299
USD	9,072,899	EUR	7,999,950	Goldman Sachs International		7/20/15		151,692
USD	9,635,370	EUR	8,635,000	Goldman Sachs International		7/20/15		5,982
USD	14,461,738	EUR	12,714,867	Royal Bank of Scotland PLC		7/20/15		282,654
USD	45,700,243	MXN	703,331,314	JPMorgan Chase Bank N.A.		7/20/15		1,019,606
GBP	63,000,000	USD	98,002,989	Bank of America N.A.		7/21/15		970,446
USD	6,104,758	AUD	7,972,000	Barclays Bank PLC		7/21/15		(38,287	)
USD	38,299,370	CNH	239,440,000	BNP Paribas S.A.		7/21/15		(208,344	)
USD	9,564,675	CNH	59,762,000	JPMorgan Chase Bank N.A.		7/21/15		(46,493	)
USD	677,106,696	GBP	457,947,000	Barclays Bank PLC		7/21/15		(42,331,201	)
USD	4,874,301	GBP	3,070,000	State Street Bank and Trust Co.		7/21/15		51,310
USD	36,222,861	HKD	280,809,834	Royal Bank of Scotland PLC		7/21/15		(2,717	)
USD	20,356,377	JPY	2,520,924,000	Morgan Stanley & Co. International PLC		7/21/15		(247,411	)
USD	1,165,537	JPY	139,791,000	Royal Bank of Scotland PLC		7/21/15		23,009
USD	262,219,724	JPY	31,273,693,000	Standard Chartered Bank		7/21/15		6,616,399
USD	84,546,811	JPY	10,387,428,000	State Street Bank and Trust Co.		7/21/15		(350,778	)
USD	36,446,805	MXN	555,569,576	Barclays Bank PLC		7/21/15		1,155,718
USD	111,577,485	MXN	1,673,997,000	Barclays Bank PLC		7/21/15		5,241,258
USD	9,119,880	NZD	13,084,000	HSBC Bank USA N.A.		7/21/15		270,858
USD	20,561,435	NZD	28,697,000	State Street Bank and Trust Co.		7/21/15		1,152,968
USD	4,952,014	SEK	43,025,520	HSBC Bank PLC		7/21/15		(240,448	)
USD	6,351,123	SGD	8,732,000	Citibank N.A.		7/21/15		(129,930	)
EUR	100,920,787	USD	112,812,134	State Street Bank and Trust Co.		7/24/15		(263,346	)
USD	115,093,098	EUR	100,920,787	Bank of America N.A.		7/24/15		2,544,310
USD	37,179,414	MXN	571,112,975	BNP Paribas S.A.		7/27/15		917,421
MYR	59,048,610	USD	15,740,000	Deutsche Bank AG		7/29/15		(128,091	)
PLN	220,249,308	EUR	52,775,309	HSBC Bank PLC		7/29/15		(330,750	)
PLN	77,175,947	EUR	18,477,180	State Street Bank and Trust Co.		7/29/15		(98,688	)
USD	18,888,000	MYR	70,913,107	JPMorgan Chase Bank N.A.		7/29/15		139,228
EUR	9,852,000	ZAR	138,840,295	BNP Paribas S.A.		7/31/15		(359,438	)
EUR	16,420,000	ZAR	227,684,646	BNP Paribas S.A.		7/31/15		(295,361	)
EUR	13,136,000	ZAR	180,505,717	Citibank N.A.		7/31/15		(102,085	)
EUR	6,634,000	ZAR	93,628,959	Deutsche Bank AG		7/31/15		(253,366	)
USD	11,914,099	ZAR	145,148,277	Barclays Bank PLC		7/31/15		50,882
ZAR	324,107,812	EUR	22,988,000	Goldman Sachs International		7/31/15		850,713
USD	7,418,777	EUR	6,593,160	Goldman Sachs International		8/03/15		64,913
USD	58,600,080	MXN	919,552,454	HSBC Bank PLC		8/03/15		244,030
USD	7,113,069	BRL	22,423,239	UBS AG		8/04/15		(5,400	)
USD	47,819,544	EUR	42,520,000	Goldman Sachs International		8/05/15		392,283
USD	4,172,943,295	EUR	3,724,369,000	UBS AG		8/05/15		18,742,458
MXN	931,768,761	USD	60,700,757	Barclays Bank PLC		8/10/15		(1,598,456	)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 53

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows: (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	60,251,331	MXN	931,768,761	HSBC Bank PLC		8/10/15	$	1,149,030
USD	32,380,898	MXN	502,942,607	State Street Bank and Trust Co.		8/10/15		479,136
INR	1,377,605,000	USD	21,321,854	Bank of America N.A.		8/11/15		126,646
INR	1,375,750,000	USD	21,289,848	BNP Paribas S.A.		8/11/15		129,771
INR	1,384,375,000	USD	21,421,663	Citibank N.A.		8/11/15		132,242
INR	1,430,855,000	USD	22,233,781	Citibank N.A.		8/11/15		43,790
INR	1,377,855,000	USD	21,325,724	JPMorgan Chase Bank N.A.		8/11/15		126,669
INR	1,430,850,475	USD	22,226,803	The Bank of New York Mellon		8/11/15		50,698
INR	1,371,815,000	USD	21,225,669	UBS AG		8/11/15		132,684
USD	41,052,018	INR	2,655,244,539	JPMorgan Chase Bank N.A.		8/11/15		(288,579	)
USD	45,014,717	INR	2,911,551,920	JPMorgan Chase Bank N.A.		8/11/15		(316,435	)
USD	213,690,828	INR	13,821,522,730	JPMorgan Chase Bank N.A.		8/11/15		(1,502,160	)
TRY	272,300,000	USD	105,965,677	Deutsche Bank AG		8/12/15		(5,680,802	)
USD	936,001	TRY	2,523,644	State Street Bank and Trust Co.		8/12/15		6,572
MXN	720,044,115	USD	46,884,893	Goldman Sachs International		8/17/15		(1,234,731	)
TRY	715,644,000	USD	268,801,623	HSBC Bank PLC		8/17/15		(5,595,741	)
USD	46,540,117	MXN	720,044,115	UBS AG		8/17/15		889,955
USD	128,366,637	TRY	357,822,000	BNP Paribas S.A.		8/17/15		(3,236,304	)
USD	128,905,380	TRY	357,822,000	Deutsche Bank AG		8/17/15		(2,697,560	)
RUB	559,720,680	USD	9,714,000	Société Générale		9/08/15		173,981
USD	9,714,000	RUB	563,751,990	Société Générale		9/08/15		(245,197	)
CNH	378,428,533	USD	60,649,001	Bank of America N.A.		9/09/15		(27,569	)
CNH	378,563,901	USD	60,649,000	Citibank N.A.		9/09/15		(5,883	)
CNH	378,433,385	USD	60,649,000	Deutsche Bank AG		9/09/15		(26,791	)
CNH	378,478,029	USD	60,649,000	Goldman Sachs International		9/09/15		(19,639	)
CNH	378,467,689	USD	60,649,000	UBS AG		9/09/15		(21,295	)
USD	21,160,000	CNH	132,219,889	Citibank N.A.		9/09/15		(57,864	)
USD	34,400,000	CNH	220,460,624	Deutsche Bank AG		9/09/15		(916,149	)
USD	206,403,390	CNH	1,323,045,732	HSBC Bank PLC		9/09/15		(5,538,681	)
USD	6,881,000	CNH	44,106,880	JPMorgan Chase Bank N.A.		9/09/15		(184,594	)
USD	34,400,608	CNH	220,460,078	JPMorgan Chase Bank N.A.		9/09/15		(915,455	)
USD	2,162,453	RUB	125,324,965	Deutsche Bank AG		9/09/15		(50,817	)
EUR	122,810,000	USD	136,595,110	Goldman Sachs International		9/16/15		473,355
EUR	3,375,000	USD	3,705,700	JPMorgan Chase Bank N.A.		9/16/15		61,144
EUR	83,010,000	USD	94,705,786	JPMorgan Chase Bank N.A.		9/16/15		(2,058,173	)
EUR	6,625,000	USD	7,391,612	Royal Bank of Scotland PLC		9/16/15		2,562
NOK	983,232,791	EUR	112,034,000	Bank of America N.A.		9/16/15		131,735
USD	76,228,992	AUD	99,930,000	Bank of America N.A.		9/16/15		(539,112	)
USD	77,629,031	AUD	101,769,886	BNP Paribas S.A.		9/16/15		(552,509	)
USD	74,049	AUD	97,016	Goldman Sachs International		9/16/15		(481	)
USD	73,990,860	AUD	97,016,098	Goldman Sachs International		9/16/15		(538,730	)
USD	144,252,654	AUD	186,586,307	HSBC Bank PLC		9/16/15		913,545
USD	3,759,494	EUR	3,375,000	BNP Paribas S.A.		9/16/15		(7,350	)
USD	3,726,339	EUR	3,310,000	Citibank N.A.		9/16/15		32,042
USD	3,735,839	EUR	3,315,000	Deutsche Bank AG		9/16/15		35,962
USD	21,556,190	EUR	19,142,000	Royal Bank of Canada		9/16/15		191,769
USD	11,837,485	EUR	10,456,000	State Street Bank and Trust Co.		9/16/15		167,525
USD	112,893,265	EUR	100,920,787	State Street Bank and Trust Co.		9/16/15		255,390

See Notes to Financial Statements.

54 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, forward foreign currency exchange contracts outstanding were as follows: (concluded)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	15,177,237	GBP	9,914,000	Morgan Stanley & Co. International PLC		9/16/15	$	(391,256	)
USD	8,003,863	GBP	5,167,000	Morgan Stanley Capital Services LLC		9/16/15		(110,157	)
USD	76,642,947	JPY	9,513,773,318	Bank of America N.A.		9/16/15		(1,175,752	)
USD	153,286,000	JPY	19,026,241,535	BNP Paribas S.A.		9/16/15		(2,340,722	)
USD	19,567,527	MXN	302,465,044	Bank of America N.A.		9/18/15		433,676
TRY	357,822,000	USD	125,309,753	Goldman Sachs International		9/28/15		4,788,414
USD	126,438,869	TRY	357,822,000	Goldman Sachs International		9/28/15		(3,659,298	)
TRY	272,300,000	USD	112,590,449	Deutsche Bank AG		10/28/15		(14,438,968	)
USD	99,743,590	TRY	272,300,000	BNP Paribas S.A.		10/28/15		1,592,103
TRY	276,660,000	USD	103,192,839	Deutsche Bank AG		12/02/15		(4,461,419	)
USD	98,877,770	TRY	276,660,000	Deutsche Bank AG		12/02/15		146,350
TRY	300,000,000	USD	114,455,763	Deutsche Bank AG		2/02/16		(9,161,752	)
TRY	400,000,000	USD	152,770,882	Deutsche Bank AG		2/02/16		(12,378,867	)
USD	33,769,211	TRY	95,799,873	Deutsche Bank AG		2/02/16		145,368
USD	212,941,470	TRY	604,200,127	Deutsche Bank AG		2/02/16		879,288
TRY	250,000,000	USD	93,402,077	Deutsche Bank AG		2/05/16		(5,724,710	)
USD	89,628,222	TRY	250,000,000	BNP Paribas S.A.		2/05/16		1,950,855
Total							$	(132,936,629	)

• As of June 30, 2015, exchange-traded options purchased were as follows:

Description	Put/ Call		Strike Price		Expiration Date		Contracts		Value
E-Mini S&P 500 Index Futures		Call	USD	2,135.00		7/02/15		476		$2,380
E-Mini S&P 500 Index Futures		Call	USD	2,140.00		7/02/15		170		850
SPDR S&P 500 ETF Trust		Call	USD	212.00		7/02/15		2,904		139,392
DAX Index		Call	EUR	11,200.00		7/17/15		5,004		6,128,224
DAX Index		Call	EUR	12,050.00		7/17/15		3,008		372,236
E-Mini S&P 500 Index Futures		Call	USD	2,140.00		7/17/15		830		49,800
Market Vectors Semiconductor ETF		Call	USD	60.00		7/17/15		3,000		15,000
SPDR S&P 500 ETF Trust		Call	USD	215.00		7/17/15		54,664		573,972
SPDR S&P 500 ETF Trust		Call	USD	212.00		7/17/15		8,470		406,560
SPDR S&P 500 ETF Trust		Call	USD	216.00		7/17/15		8,157		53,021
SPDR S&P 500 ETF Trust		Call	USD	220.00		7/17/15		7,843		11,765
Nikkei 225 Index		Call	JPY	21,250.00		9/11/15		2,500		5,719,655
iShares U.S. Home Construction ETF		Call	USD	29.00		10/16/15		5,997		509,745
iShares China Large-Cap ETF		Call	USD	49.00		12/18/15		3,936		822,624
Barrick Gold Corp.		Call	USD	20.00		1/15/16		9,723		38,892
SPDR S&P 500 ETF Trust		Put	USD	203.00		7/10/15		1,441		216,150
SPDR S&P 500 ETF Trust		Put	USD	205.00		7/10/15		1,153		196,010
iShares MSCI Brazil Capped Index		Put	USD	31.00		7/17/15		994		27,832
iShares MSCI Mexico Capped Investable Market Index		Put	USD	58.00		7/17/15		249		38,969
SPDR S&P 500 ETF Trust		Put	USD	196.00		7/17/15		9,883		790,640
SPDR S&P 500 ETF Trust		Put	USD	200.00		7/17/15		9,412		1,284,738
SPDR S&P 500 ETF Trust		Put	USD	204.00		7/17/15		9,097		2,105,956
SPDR S&P 500 ETF Trust		Put	USD	208.00		7/17/15		8,783		3,399,021
U.S. Treasury Notes (10 Year)		Put	USD	124.50		7/24/15		754		188,500
U.S. Treasury Notes (10 Year)		Put	USD	125.50		7/24/15		307		163,094
Chesapeake Energy Corp.		Put	USD	11.00		8/21/15		2,840		235,720
EURO STOXX 50 Index		Put	EUR	3,350.00		8/21/15		210		268,066
Market Vectors Russia ETF Trust		Put	USD	19.00		8/21/15		3,953		494,125
SPDR S&P 500 ETF Trust		Put	USD	205.00		8/21/15		1,452		640,332

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 55

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, exchange-traded options purchased were as follows: (concluded)

Description	Put/ Call		Strike Price		Expiration Date	Contracts		Value
Transocean Ltd.		Put	USD	17.00	8/21/15		403		$71,936
U.S. Treasury Notes (10 Year)		Put	USD	125.00	8/21/15		4,375		3,007,813
Euro Dollar 90-Day		Put	USD	98.75	9/11/15		13,133		2,626,600
Euro Dollar 90-Day		Put	USD	98.25	9/11/15		13,133		246,244
Euro Dollar 90-Day		Put	USD	98.00	9/11/15		1,800		573,750
Euro Dollar 90-Day		Put	USD	98.63	9/11/15		1,599		179,888
Energy Select Sector SPDR Fund		Put	USD	75.00	9/18/15		774		205,110
Euro Dollar 90-Day		Put	USD	98.00	12/11/15		2,430		197,438
Euro Dollar 90-Day		Put	USD	98.25	12/11/15		1,220		213,500
Energy Select Sector SPDR Fund		Put	USD	75.00	12/18/15		774		321,210
Volkswagen AG		Put	EUR	150.00	12/18/15		2,196		—
Freeport-McMoRan, Inc.		Put	USD	15.00	1/15/16		1,097		81,727
Euro Dollar 90-Day		Put	USD	99.00	3/14/16		3,490		458,063
Euro Dollar 90-Day		Put	USD	98.50	3/14/16		3,490		87,250
Transocean Ltd.		Put	USD	10.00	1/20/17		2,929		585,800
Total									$33,749,598

• As of June 30, 2015, OTC barrier options purchased were as follows:

Description	Counterparty	Barrier Price		Expiration Date		Contracts		Notional Amount (000)		Value
EUR Currency	BNP Paribas S.A.	JPY	0.00		7/17/15		—	EUR	2,945	$	26,808
EUR Currency	Deutsche Bank AG	JPY	0.00		7/17/15		—	EUR	1,309		11,915
EUR Currency	Deutsche Bank AG	USD	1.08		7/23/15		—	EUR	159,678		741,335
AUD Currency	Deutsche Bank AG	USD	0.71		8/21/15		—	USD	8,215		376,189
EUR Currency	Deutsche Bank AG	USD	0.00		9/18/15		—	EUR	2,140		862,122
S&P 500 Index	Bank of America N.A.	USD	1,996.41		9/18/15		118,561		—		2,154,253
S&P 500 Index	BNP Paribas S.A.	USD	1,995.15		9/18/15		42,369		—		1,239,831
S&P 500 Index	Deutsche Bank AG	USD	2,015.18		9/18/15		234,911		—		7,418,401
USD Currency	Citibank N.A.	CHF	1.02		11/02/15		—	USD	24,368		2,427,570
AUD Currency	Deutsche Bank AG	USD	0.00		11/20/15		—	USD	4,390		440,101
AUD Currency	Deutsche Bank AG	USD	0.70		11/23/15		—	USD	8,215		837,267
EURO STOXX 50 Index	Barclays Bank PLC	USD	3,225.00		12/18/15		45,527		—		1,330,299
USD Currency	Deutsche Bank AG	EUR	0.00		12/18/15		—	USD	835		313,032
AUD Currency	Morgan Stanley & Co. International PLC	USD	0.00		12/21/15		—	USD	3,000		347,788
Total										$	18,526,911

• As of June 30, 2015, OTC options purchased were as follows:

Description

Counterparty

Put/ Call

Strike Price

Expiration Date

Contracts

Notional Amount (000)

Value

USD Currency

Goldman Sachs Bank USA

Call

MXN

15.55

7/01/15

—

USD

18,292

$

157,426

USD Currency

JPMorgan Chase Bank N.A.

Call

KRW

1,085.00

7/02/15

—

USD

15,846

506,538

USD Currency

Goldman Sachs International

Call

MXN

15.55

7/08/15

—

USD

29,100

345,135

KOSPI 200 Index

Citibank N.A.

Call

KRW

255.96

7/09/15

193,431,996

—

161,478

KOSPI 200 Index

Citibank N.A.

Call

KRW

264.09

7/09/15

181,563,429

—

5,538

USD Currency

Deutsche Bank AG

Call

KRW

1,120.00

7/16/15

—

USD

32,796

281,780

USD Currency

JPMorgan Chase Bank N.A.

Call

MYR

3.65

7/16/15

—

USD

32,796

1,098,751

USD Currency

BNP Paribas S.A.

Call

CAD

1.31

7/21/15

—

USD

68,208

9,338

USD Currency

HSBC Bank PLC

Call

CAD

1.31

7/21/15

—

USD

68,208

9,338

AUD Currency

BNP Paribas S.A.

Call

USD

0.80

7/23/15

—

AUD

40,170

30,947

National Stock Exchange CNX Nifty Index

Citibank N.A.

Call

INR

8,395.77

7/30/15

156,450

—

339,632

USD Currency

Goldman Sachs International

Call

BRL

3.22

8/03/15

—

USD

32,829

455,755

USD Currency

BNP Paribas S.A.

Call

CAD

1.28

9/21/15

—

USD

11,600

75,581

See Notes to Financial Statements.

56 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC options purchased were as follows: (concluded)

Description

Counterparty

Put/ Call

Strike Price

Expiration Date

Contracts

Notional Amount (000)

Value

USD Currency

BNP Paribas S.A.

Call

SGD

1.40

9/28/15

—

USD

68,540

$

276,648

USD Currency

Deutsche Bank AG

Call

CAD

1.28

10/30/15

—

USD

68,210

665,805

EUR Currency

Citibank N.A.

Put

USD

1.21

7/01/15

—

EUR

463,241

42,184,224

EUR Currency

Deutsche Bank AG

Put

USD

1.14

7/01/15

—

EUR

463,241

10,104,250

USD Currency

BNP Paribas S.A.

Put

JPY

122.75

7/01/15

—

USD

19,697

82,042

EUR Currency

Citibank N.A.

Put

USD

1.08

7/03/15

—

EUR

192,440

88,627

EUR Currency

Deutsche Bank AG

Put

USD

1.11

7/06/15

—

EUR

17,300

120,975

EUR Currency

Deutsche Bank AG

Put

USD

1.11

7/09/15

—

EUR

16,800

133,687

EUR Currency

JPMorgan Chase Bank N.A.

Put

PLN

4.20

7/09/15

—

EUR

34,870

307,158

KOSPI 200 Index

Citibank N.A.

Put

KRW

242.39

7/09/15

531,141,600

—

404,373

EUR Currency

BNP Paribas S.A.

Put

JPY

125.00

7/14/15

—

EUR

66,320

9,190

EUR Currency

JPMorgan Chase Bank N.A.

Put

PLN

3.95

7/14/15

—

EUR

20,530

114

EUR Currency

BNP Paribas S.A.

Put

USD

1.11

7/15/15

—

EUR

13,850

134,922

EUR Currency

Morgan Stanley & Co. International PLC

Put

MXN

17.00

7/16/15

—

EUR

65,160

128,165

EUR Currency

HSBC Bank PLC

Put

ZAR

13.25

7/17/15

—

EUR

39,804

45,432

USD Currency

Deutsche Bank AG

Put

CAD

1.22

7/24/15

—

USD

40,000

118,912

EUR Currency

Goldman Sachs International

Put

ZAR

13.10

7/29/15

—

EUR

49,259

63,593

EUR Currency

Goldman Sachs International

Put

PLN

4.10

7/30/15

—

EUR

33,785

82,400

EUR Currency

BNP Paribas S.A.

Put

USD

1.10

8/03/15

—

EUR

32,829

359,030

EUR Currency

Citibank N.A.

Put

USD

1.08

8/05/15

—

EUR

358,681

2,295,769

EUR Currency

Citibank N.A.

Put

USD

1.10

8/05/15

—

EUR

80,055

786,573

EUR Currency

HSBC Bank PLC

Put

PLN

4.12

9/23/15

—

EUR

66,175

531,596

EUR Currency

BNP Paribas S.A.

Put

USD

1.04

10/09/15

—

EUR

81,570

570,430

EUR Currency

BNP Paribas S.A.

Put

USD

1.12

10/09/15

—

EUR

54,550

1,409,848

EUR Currency

Deutsche Bank AG

Put

USD

1.07

10/09/15

—

EUR

23,020

255,217

EUR Currency

JPMorgan Chase Bank N.A.

Put

USD

1.08

10/09/15

—

EUR

81,570

1,174,652

EUR Currency

JPMorgan Chase Bank N.A.

Put

USD

1.07

10/09/15

—

EUR

1,790

19,845

Total

$

65,830,714

• As of June 30, 2015, OTC credit default swaptions purchased were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Expiration Date

Notional Amount (000)

Value

Bought protection on 5-Year Credit Default Swaps

Citibank N.A.

Put

275.00%

Receive

iTraxx Crossover Series 23 Version 1

7/15/15

EUR

51,400

$

1,586,977

Bought protection on 5-Year Credit Default Swaps

Citibank N.A.

Put

300.00%

Receive

iTraxx Crossover Series 23 Version 1

7/15/15

EUR

51,400

1,039,244

Bought protection on 5-Year Credit Default Swaps

JPMorgan Chase Bank N.A.

Put

325.00%

Receive

iTraxx Crossover Series 23 Version 1

8/19/15

EUR

56,000

1,162,889

Total

$

3,789,110

• As of June 30, 2015, OTC interest rate swaptions purchased were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Value

1-Year Interest Rate Swap

Credit Suisse International

Call

11.40%

Receive

1-day BZDIOVER

7/01/15

BRL

560,800

$

18

1-Year Interest Rate Swap

Deutsche Bank AG

Call

11.40%

Receive

1-day BZDIOVER

7/01/15

BRL

200,280

6

10-Year Interest Rate Swap

BNP Paribas S.A.

Call

0.99%

Receive

6-month EURIBOR

7/23/15

EUR

129,710

450,789

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 57

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC interest rate swaptions purchased were as follows: (concluded)

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Value

2-Year Interest Rate Swap

Deutsche Bank AG

Call

1.92%

Receive

3-month KRW Certificate of Deposit

11/09/15

KRW

89,814,566

$

338,049

30-Year Interest Rate Swap

Citibank N.A.

Call

3.18%

Receive

3-month LIBOR

6/17/20

USD

37,740

4,287,311

10-Year Interest Rate Swap

BNP Paribas S.A.

Put

1.49%

Pay

6-month EURIBOR

7/23/15

EUR

129,710

204,504

30-Year Interest Rate Swap

Citibank N.A.

Put

3.10%

Pay

3-month LIBOR

9/18/15

USD

200,828

4,285,238

30-Year Interest Rate Swap

Citibank N.A.

Put

3.55%

Pay

3-month LIBOR

9/18/15

USD

401,656

1,389,710

30-Year Interest Rate Swap

Citibank N.A.

Put

3.30%

Pay

3-month LIBOR

12/17/15

USD

37,740

874,334

30-Year Interest Rate Swap

Citibank N.A.

Put

3.18%

Pay

3-month LIBOR

6/17/20

USD

37,740

4,795,783

Total

$

16,625,742

• As of June 30, 2015, exchange-traded options written were as follows:

Description	Put/ Call		Strike Price		Expiration Date	Contracts		Value
DAX Index		Call	EUR	11,800.00	7/17/15		6,251	$	(1,784,048	)
Tesoro Corp.		Call	USD	90.00	8/21/15		301		(77,658	)
The Williams Cos., Inc.		Call	USD	60.00	8/21/15		389		(72,549	)
Euro Dollar 90-Day		Call	USD	98.25	9/11/15		1,200		(337,500	)
Euro Dollar 90-Day		Call	USD	99.00	9/11/15		1,599		(799,500	)
Euro Dollar 90-Day		Call	USD	98.75	9/11/15		3,660		(1,647,000	)
United Continental Holdings, Inc.		Call	USD	60.00	9/18/15		1,153		(171,221	)
United Rentals, Inc.		Call	USD	100.00	9/18/15		874		(122,360	)
iShares China Large-Cap ETF		Call	USD	55.00	12/18/15		3,936		(346,368	)
Market Vectors Russia ETF Trust		Put	USD	16.00	8/21/15		3,953		(79,060	)
The Williams Cos., Inc.		Put	USD	55.00	8/21/15		389		(73,716	)
Euro Dollar 90-Day		Put	USD	98.50	9/11/15		15,358		(863,888	)
Euro Dollar 90-Day		Put	USD	99.13	12/14/15		2,457		(61,425	)
Euro Dollar 90-Day		Put	USD	98.75	3/14/16		6,980		(349,000	)
Total								$	(6,785,293	)

• As of June 30, 2015, OTC options written were as follows:

Description	Counterparty	Put/ Call		Strike Price		Expiration Date	Contracts		Notional Amount (000)		Value
USD Currency	Deutsche Bank AG		Call	KRW	1,120.00	7/01/15		—	USD	32,796	$	(118,866	)
USD Currency	Goldman Sachs International		Call	MXN	15.85	7/08/15		—	USD	17,460		(59,226	)
EUR Currency	Morgan Stanley & Co. International PLC		Call	MXN	17.80	7/16/15		—	EUR	32,580		(205,640	)
USD Currency	JPMorgan Chase Bank N.A.		Call	MYR	3.75	7/16/15		—	USD	49,195		(609,186	)
EUR Currency	HSBC Bank PLC		Call	ZAR	13.80	7/17/15		—	EUR	29,852		(361,147	)
USD Currency	Deutsche Bank AG		Call	CAD	1.31	7/21/15		—	USD	136,415		(18,675	)
AUD Currency	Morgan Stanley & Co. International PLC		Call	USD	0.80	7/23/15		—	AUD	40,170		(30,947	)
USD Currency	JPMorgan Chase Bank N.A.		Call	BRL	3.28	7/30/15		—	USD	7,879		(59,236	)
USD Currency	Goldman Sachs International		Call	BRL	3.50	8/03/15		—	USD	32,829		(42,717	)
USD Currency	BNP Paribas S.A.		Call	SGD	1.46	9/28/15		—	USD	68,540		(46,593	)
USD Currency	Bank of America N.A.		Call	CAD	1.28	10/30/15		—	USD	19,025		(185,705	)
USD Currency	BNP Paribas S.A.		Call	CAD	1.28	10/30/15		—	USD	11,495		(112,204	)
EUR Currency	Citibank N.A.		Put	USD	1.14	7/01/15		—	EUR	463,241		(10,104,250	)
EUR Currency	Deutsche Bank AG		Put	USD	1.21	7/01/15		—	EUR	463,241		(42,184,224	)
EUR Currency	Citibank N.A.		Put	USD	1.02	7/03/15		—	EUR	192,440		(21	)
EUR Currency	Deutsche Bank AG		Put	PLN	4.20	7/09/15		—	EUR	34,870		(307,158	)
EUR Currency	BNP Paribas S.A.		Put	JPY	119.00	7/14/15		—	EUR	66,320		(140	)

See Notes to Financial Statements.

58 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC options written were as follows: (concluded)

Description	Counterparty	Put/ Call	Strike Price		Expiration Date	Contracts	Notional Amount (000)			Value
EUR Currency	Morgan Stanley & Co. International PLC	Put	MXN	16.50	7/16/15	—		EUR	78,986	$	(14,979	)
EUR Currency	HSBC Bank PLC	Put	ZAR	12.70	7/17/15	—		EUR	39,804		(1,083	)
EUR Currency	Goldman Sachs International	Put	ZAR	12.60	7/29/15	—		EUR	49,259		(4,717	)
EUR Currency	Goldman Sachs International	Put	PLN	4.02	7/30/15	—		EUR	33,785		(14,618	)
EUR Currency	BNP Paribas S.A.	Put	USD	1.05	8/03/15	—		EUR	39,393		(91,054	)
EUR Currency	Citibank N.A.	Put	USD	1.05	8/05/15	—		EUR	80,055		(168,066	)
EUR Currency	Citibank N.A.	Put	USD	1.03	8/05/15	—		EUR	358,681		(440,743	)
EUR Currency	HSBC Bank PLC	Put	PLN	4.02	9/23/15	—		EUR	99,260		(247,901	)
EUR Currency	BNP Paribas S.A.	Put	USD	1.07	10/09/15	—		EUR	54,550		(604,783	)
EUR Currency	BNP Paribas S.A.	Put	USD	1.08	10/09/15	—		EUR	81,570		(1,174,652	)
EUR Currency	Deutsche Bank AG	Put	USD	1.12	10/09/15	—		EUR	23,020		(594,953	)
EUR Currency	JPMorgan Chase Bank N.A.	Put	USD	1.12	10/09/15	—		EUR	31,530		(814,895	)
EUR Currency	JPMorgan Chase Bank N.A.	Put	USD	1.04	10/09/15	—		EUR	81,570		(570,435	)
Total										$	(59,188,814	)

• As of June 30, 2015, OTC credit default swaptions written were as follows:

Description

Counterparty

Put/ Call

Strike Price

Pay/Receive Floating Rate Index

Floating Rate Index

Credit Rating1

Expiration Date

Notional Amount2 (000)

Value

Sold protection on 5-Year Credit Default Swaps

Citibank N.A.

Put

325.00%

Pay

iTraxx Crossover Series 23 Version 1

B+

7/15/15

EUR

51,400

$

(645,856

)

Sold protection on 5-Year Credit Default Swaps

Citibank N.A.

Put

375.00%

Pay

iTraxx Crossover Series 23 Version 1

B+

7/15/15

EUR

51,400

(254,839

)

Sold protection on 5-Year Credit Default Swaps

JPMorgan Chase Bank N.A.

Put

375.00%

Pay

iTraxx Crossover Series 23 Version 1

B+

8/19/15

EUR

56,000

(666,500

)

Sold protection on 5-Year Credit Default Swaps

Goldman Sachs International

Put

425.00%

Pay

iTraxx Crossover Series 23 Version 1

B+

8/19/15

EUR

34,200

(229,128

)

Sold protection on 5-Year Credit Default Swaps

JPMorgan Chase Bank N.A.

Put

85.00%

Pay

iTraxx Europe Series 23 Version 1

A-

8/19/15

EUR

85,400

(274,737

)

Total

$

(2,071,060

)

¹  Using S&P’s rating of the issuer or the underlying securities of the index, as applicable.

²  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

• As of June 30, 2015, OTC interest rate swaptions written were as follows:

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Value

1-Year Interest Rate Swap

Credit Suisse International

Call

10.60%

Pay

1-day BZDIOVER

7/01/15

BRL

560,800

$

(18

)

1-Year Interest Rate Swap

Deutsche Bank AG

Call

10.60%

Pay

1-day BZDIOVER

7/01/15

BRL

200,280

(6

)

10-Year Interest Rate Swap

BNP Paribas S.A.

Call

0.99%

Pay

6-month EURIBOR

7/23/15

EUR

129,710

(450,789

)

5-Year Interest Rate Swap

BNP Paribas S.A.

Call

5.40%

Pay

28-day MXIBTIIE

8/10/15

MXN

820,863

(381,060

)

5-Year Interest Rate Swap

BNP Paribas S.A.

Call

5.40%

Pay

28-day MXIBTIIE

8/19/15

MXN

275,869

(135,921

)

5-Year Interest Rate Swap

JPMorgan Chase Bank N.A.

Call

5.40%

Pay

28-day MXIBTIIE

8/19/15

MXN

544,994

(268,518

)

2-Year Interest Rate Swap

Deutsche Bank AG

Call

1.63%

Pay

3-month KRW Certificate of Deposit

11/09/15

KRW

89,814,566

(85,020

)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 59

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC interest rate swaptions written were as follows: (concluded)

Description

Counterparty

Put/ Call

Exercise Rate

Pay/Receive Exercise Rate

Floating Rate Index

Expiration Date

Notional Amount (000)

Value

5-Year Interest Rate Swap

Citibank N.A.

Call

0.45%

Pay

6-month EURIBOR

12/23/15

EUR

75,380

$

(221,699

)

5-Year Interest Rate Swap

Bank of America N.A.

Call

0.45%

Pay

6-month EURIBOR

12/24/15

EUR

75,380

(222,358

)

10-Year Interest Rate Swap

Morgan Stanley & Co. International PLC

Call

2.20%

Pay

3-month LIBOR

6/19/17

USD

226,400

(3,982,858

)

10-Year Interest Rate Swap

Citibank N.A.

Call

2.20%

Pay

3-month LIBOR

6/26/17

USD

226,400

(4,000,101

)

10-Year Interest Rate Swap

BNP Paribas S.A.

Put

1.49%

Receive

6-month EURIBOR

7/23/15

EUR

129,710

(204,504

)

30-Year Interest Rate Swap

Citibank N.A.

Put

2.65%

Receive

3-month LIBOR

9/18/15

USD

100,414

(7,556,866

)

5-Year Interest Rate Swap

Deutsche Bank AG

Put

0.50%

Receive

6-month EURIBOR

11/06/15

EUR

68,045

(601,482

)

10-Year Interest Rate Swap

Citibank N.A.

Put

2.85%

Receive

3-month LIBOR

11/20/15

USD

52,700

(540,024

)

30-Year Interest Rate Swap

Morgan Stanley & Co. International PLC

Put

2.00%

Receive

6-month EURIBOR

12/17/15

EUR

27,175

(994,718

)

5-Year Interest Rate Swap

Citibank N.A.

Put

0.85%

Receive

6-month EURIBOR

12/23/15

EUR

75,380

(249,937

)

5-Year Interest Rate Swap

Bank of America N.A.

Put

0.85%

Receive

6-month EURIBOR

12/24/15

EUR

75,380

(251,791

)

10-Year Interest Rate Swap

Morgan Stanley & Co. International PLC

Put

3.20%

Receive

3-month LIBOR

6/19/17

USD

226,400

(7,456,163

)

10-Year Interest Rate Swap

Citibank N.A.

Put

3.20%

Receive

3-month LIBOR

6/26/17

USD

226,400

(7,526,061

)

Total

$

(35,129,894

)

• As of June 30, 2015, centrally cleared credit default swaps — buy protection outstanding were as follows:

Index	Pay Fixed Rate	Clearinghouse	Expiration Date	Notional Amount (000)			Unrealized Appreciation (Depreciation)
CDX.NA.IG Series 20 Version 1	1.00%	Chicago Mercantile	6/20/18		USD	150,000	$	(1,954,738	)
iTraxx Crossover Series 22 Version 1	5.00%	InterContinental Exchange	12/20/19		EUR	75,763		10,326,560
iTraxx Europe Series 22 Version 1	1.00%	InterContinental Exchange	12/20/19		EUR	77,083		3,111,137
iTraxx Sub Financials Series 22 Version 1	1.00%	InterContinental Exchange	12/20/19		EUR	36,480		174,323
Total							$	11,657,282

• As of June 30, 2015, centrally cleared credit default swaps — sold protection outstanding were as follows:

Index	Receive Fixed Rate	Clearinghouse		Expiration Date	Credit Rating1	Notional Amount (000)2			Unrealized Appreciation (Depreciation)
iTraxx Crossover Series 21 Version 1	5.00%		InterContinental Exchange	6/20/19	BB-		EUR	119,145	$	657,145
iTraxx Europe Series 21 Version 1	1.00%		InterContinental Exchange	6/20/19	A-		EUR	9,633		(18,438	)
CDX.NA.HY Series 24 Version 2	5.00%		Chicago Mercantile	6/20/20	B+		USD	47,426		385,303
CDX.NA.IG Series 24 Version 1	1.00%		Chicago Mercantile	6/20/20	BBB+		USD	451,710		2,386,201
iTraxx Crossover Series 23 Version 1	5.00%		InterContinental Exchange	6/20/20	B+		EUR	92,863		(1,809,432	)
iTraxx Europe Series 23 Version 1	1.00%		InterContinental Exchange	6/20/20	A-		EUR	418,995		(398,206	)
iTraxx Sub Financials Series 23 Version 1	1.00%		InterContinental Exchange	6/20/20	A		EUR	100,300		(887,036	)
Total									$	315,537

¹  Using S&P’s rating of the issuer or the underlying securities of the index, as applicable.

²  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

See Notes to Financial Statements.

60 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

• As of June 30, 2015, centrally cleared interest rate swaps outstanding were as follows:

Fixed Rate	Floating Rate	Clearinghouse	Effective Date	Expiration Date	Notional Amount (000)		Unrealized Appreciation (Depreciation)
0.65%1	3-month LIBOR	Chicago Mercantile	N/A	11/26/16	USD	53,840	$	(10,759	)
2.24%2	3-month Australian Bank Bill Rate	Chicago Mercantile	6/27/163	6/27/17	AUD	408,848		45,322
2.23%2	6-month Australian Bank Bill Rate	Chicago Mercantile	6/27/163	6/27/17	AUD	822,309		(32,986	)
2.25%2	3-month Australian Bank Bill Rate	Chicago Mercantile	7/01/163	7/01/17	AUD	819,945		69,059
1.59%1	6-month GBP LIBOR	Chicago Mercantile	N/A	8/13/17	GBP	125,890		(2,479,671	)
1.21%1	6-month GBP LIBOR	Chicago Mercantile	N/A	11/25/17	GBP	46,250		(49,146	)
2.23%1	3-month LIBOR	Chicago Mercantile	N/A	11/26/22	USD	10,000		(56,382	)
2.17%1	3-month LIBOR	Chicago Mercantile	N/A	5/15/23	USD	30,001		66,555
2.04%1	3-month LIBOR	Chicago Mercantile	N/A	4/30/25	USD	11,883		380,513
2.36%1	3-month LIBOR	Chicago Mercantile	N/A	5/15/25	USD	15,001		60,825
2.45%1	3-month LIBOR	Chicago Mercantile	N/A	6/22/25	USD	18,245		(29,495	)
2.38%1	3-month LIBOR	Chicago Mercantile	N/A	4/24/45	USD	36,145		3,922,822
2.39%1	3-month LIBOR	Chicago Mercantile	N/A	4/24/45	USD	36,145		3,842,378
1.79%1	6-month EURIBOR	Chicago Mercantile	N/A	6/15/45	EUR	70,000		(2,347,523	)
Total							$	3,381,512

¹  Fund pays the fixed rate and receives the floating rate.

²  Fund pays the floating rate and receives the fixed rate.

³  Forward swap.

• As of June 30, 2015, OTC credit default swaps — buy protection outstanding were as follows:

Issuer/Index	Pay Fixed Rate		Counterparty	Expiration Date		Notional Amount (000)			Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Banca Monte dei Paschi di Siena SpA		5.00%	Deutsche Bank AG		12/20/16		EUR	750	$	(32,035	)	$	56,151		$	(88,186	)
AK Steel Corp.		5.00%	Citibank N.A.		12/20/16		USD	6,800		(82,509	)		(99,962	)		17,453
iTraxx Asia ex-Japan IG Series 16 Version 1		1.00%	Deutsche Bank AG		12/20/16		USD	5,000		(42,616	)		112,624			(155,240	)
Transocean Worldwide, Inc.		1.00%	Goldman Sachs Bank USA		12/20/16		USD	4,250		(50,339	)		(11,838	)		(38,501	)
AK Steel Corp.		5.00%	JPMorgan Chase Bank N.A.		12/20/16		USD	3,500		(42,468	)		(57,885	)		15,417
Banca Monte dei Paschi di Siena SpA		5.00%	JPMorgan Chase Bank N.A.		3/20/17		EUR	1,550		(75,473	)		93,204			(168,677	)
AK Steel Corp.		5.00%	Citibank N.A.		3/20/17		USD	3,750		(15,868	)		(41,791	)		25,923
AK Steel Corp.		5.00%	Citibank N.A.		3/20/17		USD	1,450		(6,136	)		(18,057	)		11,921
Republic of Ireland		1.00%	Citibank N.A.		3/20/17		USD	3,000		(40,721	)		194,570			(235,291	)
Republic of Ireland		1.00%	Morgan Stanley Capital Services LLC		3/20/17		USD	7,500		(101,802	)		494,974			(596,776	)
CDX.NA.IG Series 18 Version 1		1.00%	Credit Suisse International		6/20/17		USD	86,815		(1,254,850	)		(382	)		(1,254,468	)
Commonwealth of Australia		1.00%	UBS AG		6/20/17		USD	10,000		(182,565	)		(14,645	)		(167,920	)
Peugeot SA		5.00%	BNP Paribas S.A.		9/20/17		EUR	2,890		(287,556	)		159,956			(447,512	)
Energias de Portugal SA		5.00%	Citibank N.A.		9/20/17		EUR	5,349		(578,983	)		(683,597	)		104,614
Hitachi Ltd.		1.00%	JPMorgan Chase Bank N.A.		12/20/17		JPY	500,000		(92,293	)		(50,213	)		(42,080	)
Transocean, Inc.		1.00%	Barclays Bank PLC		12/20/17		USD	9,100		443,787			92,363			351,424
Government of Japan		1.00%	HSBC Bank USA N.A.		12/20/17		USD	10,000		(203,241	)		(60,790	)		(142,451	)
Finmeccanica SpA		5.00%	Bank of America N.A.		3/20/18		EUR	280		(34,129	)		(14,246	)		(19,883	)
Finmeccanica SpA		5.00%	Credit Suisse International		3/20/18		EUR	100		(12,188	)		(4,404	)		(7,784	)
Ricoh Co. Ltd.		1.00%	UBS AG		3/20/18		JPY	500,000		(91,363	)		94,201			(185,564	)
Republic of Italy		1.00%	Barclays Bank PLC		3/20/18		USD	9,050		(23,767	)		302,369			(326,136	)
Republic of Korea		1.00%	Citibank N.A.		3/20/18		USD	6,650		(140,810	)		(57,531	)		(83,279	)
iTraxx Europe Series 9 3-6%		5.00%	Citibank N.A.		6/20/18		EUR	11,830		(1,051,036	)		987,730			(2,038,766	)

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 61

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC credit default swaps — buy protection outstanding were as follows: (continued)

Issuer/Index	Pay Fixed Rate		Counterparty	Expiration Date		Notional Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Finmeccanica SpA		5.00%	Credit Suisse International		6/20/18	EUR	380	$	(49,510	)	$	(16,241	)	$	(33,269	)
Republic of France		0.25%	Barclays Bank PLC		6/20/18	USD	7,475		(19,861	)		79,893			(99,754	)
Republic of France		0.25%	Citibank N.A.		6/20/18	USD	8,090		(21,495	)		97,929			(119,424	)
Republic of France		0.25%	JPMorgan Chase Bank N.A.		6/20/18	USD	8,095		(21,509	)		75,234			(96,743	)
Peugeot SA		5.00%	Barclays Bank PLC		9/20/18	EUR	2,890		(368,368	)		68,253			(436,621	)
Peugeot SA		5.00%	BNP Paribas S.A.		9/20/18	EUR	3,890		(495,831	)		91,869			(587,700	)
iTraxx Financials Series 20 Version 1		1.00%	Barclays Bank PLC		12/20/18	EUR	9,590		(111,090	)		(43,770	)		(67,320	)
iTraxx Financials Series 20 Version 1		1.00%	Citibank N.A.		12/20/18	EUR	20,560		(238,166	)		(92,002	)		(146,164	)
JFE Holdings, Inc.		1.00%	Goldman Sachs International		3/20/19	JPY	1,000,000		(182,743	)		(17,428	)		(165,315	)
Kawasaki Kisen Kaisha Ltd.		1.00%	Goldman Sachs International		3/20/19	JPY	277,000		(24,955	)		50,305			(75,260	)
Kawasaki Kisen Kaisha Ltd.		1.00%	Goldman Sachs International		3/20/19	JPY	223,000		(20,090	)		42,513			(62,603	)
Kingdom of Thailand		1.00%	JPMorgan Chase Bank N.A.		3/20/19	USD	12,000		(101,999	)		187,931			(289,930	)
GDF Suez		1.00%	Bank of America N.A.		6/20/19	EUR	5,175		(137,147	)		(135,763	)		(1,384	)
GKN Holdings PLC		1.00%	Bank of America N.A.		6/20/19	EUR	600		(6,914	)		(4,497	)		(2,417	)
GKN Holdings PLC		1.00%	Barclays Bank PLC		6/20/19	EUR	725		(8,355	)		(5,041	)		(3,314	)
GKN Holdings PLC		1.00%	BNP Paribas S.A.		6/20/19	EUR	1,005		(11,582	)		(6,988	)		(4,594	)
GDF Suez		1.00%	Citibank N.A.		6/20/19	EUR	2,965		(78,578	)		(71,200	)		(7,378	)
GKN Holdings PLC		1.00%	Citibank N.A.		6/20/19	EUR	930		(10,717	)		(6,918	)		(3,799	)
iTraxx Financials Series 21 Version 1		1.00%	Citibank N.A.		6/20/19	EUR	25,700		(267,927	)		(312,588	)		44,661
iTraxx Financials Series 21 Version 1		1.00%	Citibank N.A.		6/20/19	EUR	17,800		(185,568	)		(160,959	)		(24,609	)
iTraxx Financials Series 21 Version 1		1.00%	Citibank N.A.		6/20/19	EUR	17,760		(185,151	)		(164,136	)		(21,015	)
iTraxx Financials Series 21 Version 1		1.00%	Citibank N.A.		6/20/19	EUR	16,908		(176,264	)		(165,247	)		(11,017	)
GDF Suez		1.00%	Deutsche Bank AG		6/20/19	EUR	2,960		(78,445	)		(77,654	)		(791	)
Nippon Yusen Kabushiki Kaisha		1.00%	JPMorgan Chase Bank N.A.		6/20/19	JPY	500,000		(94,705	)		(54,504	)		(40,201	)
Federative Republic of Brazil		1.00%	Bank of America N.A.		6/20/19	USD	7,827		381,320			243,912			137,408
iTraxx Asia ex-Japan IG Series 21 Version 1		1.00%	Barclays Bank PLC		6/20/19	USD	12,500		(115,209	)		129,859			(245,068	)
Federative Republic of Brazil		1.00%	Citibank N.A.		6/20/19	USD	7,600		370,262			275,411			94,851
Carlsberg Breweries A/S		1.00%	Citibank N.A.		9/20/19	EUR	1,015		(9,703	)		(10,815	)		1,112
Fortum Oyj		1.00%	Credit Suisse International		9/20/19	EUR	2,825		(63,475	)		(67,630	)		4,155
Fortum Oyj		1.00%	Credit Suisse International		9/20/19	EUR	1,780		(39,995	)		(42,613	)		2,618
Fortum Oyj		1.00%	Deutsche Bank AG		9/20/19	EUR	2,825		(63,475	)		(67,663	)		4,188
Fortum Oyj		1.00%	Deutsche Bank AG		9/20/19	EUR	2,090		(46,960	)		(51,254	)		4,294
Fortum Oyj		1.00%	Deutsche Bank AG		9/20/19	EUR	1,780		(39,995	)		(43,652	)		3,657
Carlsberg Breweries A/S		1.00%	Goldman Sachs International		9/20/19	EUR	1,790		(17,110	)		(21,131	)		4,021
Republic of Portugal		1.00%	BNP Paribas S.A.		9/20/19	USD	5,765		148,523			143,387			5,136
The Boeing Co.		1.00%	Credit Suisse International		9/20/19	USD	20,000		(688,609	)		(571,296	)		(117,313	)
RWE AG		1.00%	Credit Suisse International		12/20/19	EUR	2,975		(32,431	)		(55,111	)		22,680
RWE AG		1.00%	JPMorgan Chase Bank N.A.		12/20/19	EUR	5,125		(55,869	)		(96,168	)		40,299
Casino Guichard Perrachon SA		1.00%	Bank of America N.A.		3/20/20	EUR	630		1,143			40			1,103
Deutsche Lufthansa AG		1.00%	Barclays Bank PLC		3/20/20	EUR	1,260		21,155			10,583			10,572
Deutsche Lufthansa AG		1.00%	Barclays Bank PLC		3/20/20	EUR	1,260		21,155			10,583			10,572
Casino Guichard Perrachon SA		1.00%	Citibank N.A.		3/20/20	EUR	1,270		2,305			811			1,494

See Notes to Financial Statements.

62 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC credit default swaps — buy protection outstanding were as follows: (continued)

Issuer/Index	Pay Fixed Rate		Counterparty	Expiration Date		Notional Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Arrow Electronics, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000	$	(62,401	)	$	(50,434	)	$	(11,967	)
Avnet, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(48,911	)		(25,512	)		(23,399	)
CBS Corp.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(98,067	)		(78,097	)		(19,970	)
Computer Sciences Corp.		5.00%	Barclays Bank PLC		3/20/20	USD	5,000		(958,760	)		(947,573	)		(11,187	)
The Dow Chemical Co.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(85,826	)		(37,946	)		(47,880	)
Eastman Chemical Co.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(86,822	)		(57,952	)		(28,870	)
Expedia, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(41,973	)		(23,032	)		(18,941	)
FirstEnergy Corp.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(13,600	)		28,566			(42,166	)
Ford Motor Co.		5.00%	Barclays Bank PLC		3/20/20	USD	5,000		(907,412	)		(1,004,545	)		97,133
Gap, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(48,797	)		13,511			(62,308	)
H&R Block, Inc.		5.00%	Barclays Bank PLC		3/20/20	USD	5,000		(828,393	)		(866,992	)		38,599
Hewlett-Packard Co.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		21,203			(37,946	)		59,149
International Paper Co.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(81,743	)		(52,938	)		(28,805	)
Kinder Morgan Energy Partners LP		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(98,994	)		(3,266	)		(95,728	)
Kohl’s Corp.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(36,198	)		67,259			(103,457	)
Meadwestvaco Corp.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(160,194	)		(28,719	)		(131,475	)
Motorola Solutions, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		12,520			(30,480	)		43,000
Pitney Bowes, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(3,071	)		(15,309	)		12,238
Quest Diagnostics, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(30,869	)		9,020			(39,889	)
Transocean, Inc.		5.00%	Barclays Bank PLC		3/20/20	USD	15,400		652,826			1,916,372			(1,263,546	)
Valero Energy Corp.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(24,668	)		76,849			(101,517	)
Viacom, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(66,228	)		(103,472	)		37,244
Xerox Corp.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(8,516	)		(30,961	)		22,445
YUM! Brands, Inc.		1.00%	Barclays Bank PLC		3/20/20	USD	5,000		(32,555	)		(24,241	)		(8,314	)
General Mills, Inc.		1.00%	JPMorgan Chase Bank N.A.		3/20/20	USD	7,700		(238,880	)		(216,936	)		(21,944	)
Staples, Inc.		1.00%	Morgan Stanley Capital Services LLC		3/20/20	USD	15,400		260,309			467,836			(207,527	)
Continental AG		1.00%	Bank of America N.A.		6/20/20	EUR	8,825		(177,303	)		(246,869	)		69,566
Marks & Spencer PLC		1.00%	Bank of America N.A.		6/20/20	EUR	2,545		(19,783	)		(26,491	)		6,708
Continental AG		1.00%	Barclays Bank PLC		6/20/20	EUR	8,785		(176,498	)		(276,039	)		99,541
Vodafone Group PLC		1.00%	Barclays Bank PLC		6/20/20	EUR	2,960		(18,367	)		(26,458	)		8,091
Vodafone Group PLC		1.00%	Barclays Bank PLC		6/20/20	EUR	1,000		(2,561	)		(7,300	)		4,739
Marks & Spencer PLC		1.00%	Citibank N.A.		6/20/20	EUR	1,960		(15,235	)		(19,313	)		4,078
Vodafone Group PLC		1.00%	Citibank N.A.		6/20/20	EUR	2,970		(18,429	)		(31,335	)		12,906
Vodafone Group PLC		1.00%	Citibank N.A.		6/20/20	EUR	1,420		(4,950	)		(8,853	)		3,903
Vodafone Group PLC		1.00%	Citibank N.A.		6/20/20	EUR	1,280		(4,462	)		(1,293	)		(3,169	)
Numericable-SFR SAS		5.00%	Credit Suisse International		6/20/20	EUR	2,100		(168,633	)		(194,381	)		25,748
Vodafone Group PLC		1.00%	Credit Suisse International		6/20/20	EUR	1,720		(5,996	)		(10,739	)		4,743
Vodafone Group PLC		1.00%	Credit Suisse International		6/20/20	EUR	1,080		(3,764	)		(5,547	)		1,783
Vodafone Group PLC		1.00%	Credit Suisse International		6/20/20	EUR	810		(1,981	)		(4,203	)		2,222
Vodafone Group PLC		1.00%	Credit Suisse International		6/20/20	EUR	510		(1,777	)		(2,646	)		869
Continental AG		1.00%	Goldman Sachs International		6/20/20	EUR	5,867		(117,873	)		(181,188	)		63,315
Continental AG		1.00%	Morgan Stanley Capital Services LLC		6/20/20	EUR	8,948		(179,774	)		(281,406	)		101,632
Marks & Spencer PLC		1.00%	Morgan Stanley Capital Services LLC		6/20/20	EUR	2,545		(19,783	)		(29,529	)		9,746
Marks & Spencer PLC		1.00%	Morgan Stanley Capital Services LLC		6/20/20	EUR	1,270		(9,871	)		(14,735	)		4,864
Boyd Gaming Corp.		5.00%	Citibank N.A.		6/20/20	USD	5,700		(494,997	)		(319,179	)		(175,818	)
Time Warner Cable, Inc.		1.00%	Citibank N.A.		6/20/20	USD	5,500		115,277			209,727			(94,450	)
Boyd Gaming Corp.		5.00%	JPMorgan Chase Bank N.A.		6/20/20	USD	5,300		(460,261	)		(322,651	)		(137,610	)
United Mexican States		1.00%	JPMorgan Chase Bank N.A.		6/20/20	USD	61,427		797,693			537,930			259,763

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 63

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC credit default swaps — buy protection outstanding were as follows: (concluded)

Issuer/Index	Pay Fixed Rate		Counterparty	Expiration Date		Notional Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00%	Bank of America N.A.		9/20/20	USD	61,427	$	956,968		$	807,449		$	149,519
Republic of South Africa		1.00%	Barclays Bank PLC		9/20/20	USD	114,302		6,001,810			6,141,082			(139,272	)
Republic of Turkey		1.00%	Barclays Bank PLC		9/20/20	USD	13,157		772,460			818,657			(46,197	)
Republic of Korea		1.00%	BNP Paribas S.A.		9/20/20	USD	20,833		(508,423	)		(501,922	)		(6,501	)
Republic of Korea		1.00%	BNP Paribas S.A.		9/20/20	USD	5,000		(122,021	)		(120,519	)		(1,502	)
Republic of Korea		1.00%	BNP Paribas S.A.		9/20/20	USD	4,167		(101,685	)		(101,311	)		(374	)
Republic of Turkey		1.00%	BNP Paribas S.A.		9/20/20	USD	30,941		1,818,243			2,132,071			(313,828	)
The Western Union Co.		1.00%	Credit Suisse International		9/20/20	USD	43,000		602,811			751,735			(148,924	)
Federation of Malaysia		1.00%	JPMorgan Chase Bank N.A.		9/20/20	USD	21,710		414,340			366,457			47,883
Republic of Korea		1.00%	JPMorgan Chase Bank N.A.		3/20/23	USD	10,000		(216,474	)		14,330			(230,804	)
ABX.HE.AAA Series 6-2		0.11%	Credit Suisse International		5/25/46	USD	19,269		3,600,476			4,907,252			(1,306,776	)
CMBX.NA Series 7 AAA		0.50%	Citibank N.A.		1/17/47	USD	5,795		173,551			175,414			(1,863	)
CMBX.NA Series 7 AAA		0.50%	Deutsche Bank AG		1/17/47	USD	5,490		164,417			166,182			(1,765	)
CMBX.NA Series 7 AAA		0.50%	JPMorgan Chase Bank N.A.		1/17/47	USD	5,775		172,952			173,750			(798	)
CMBX.NA Series 7 AAA		0.50%	JPMorgan Chase Bank N.A.		1/17/47	USD	5,775		172,952			174,809			(1,857	)
Total								$	2,774,130		$	14,205,045		$	(11,430,915	)

• As of June 30, 2015, OTC credit default swaps — sold protection outstanding were as follows:

Issuer/Index	Receive Fixed Rate		Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Banca Monte dei Paschi di Siena SpA		3.00%	BNP Paribas S.A.	9/20/16	Not Rated	EUR	950	$	8,221		$	(168,991	)	$	177,212
Banca Monte dei Paschi di Siena SpA		5.00%	Deutsche Bank AG	9/20/16	Not Rated	EUR	750		27,353			(38,466	)		65,819
Banca Monte dei Paschi di Siena SpA		3.00%	JPMorgan Chase Bank N.A.	9/20/16	Not Rated	EUR	750		6,490			(74,339	)		80,829
CDX.NA.IG Series 18 Version 1		1.00%	Citibank N.A.	6/20/17	BBB+	USD	86,815		1,254,850			35,022			1,219,828
Abengoa SA		5.00%	Barclays Bank PLC	3/20/18	B+	EUR	505		(69,293	)		(43,638	)		(25,655	)
Abengoa SA		5.00%	Credit Suisse International	3/20/18	B+	EUR	760		(104,282	)		(65,673	)		(38,609	)
Republic of Italy		1.00%	Barclays Bank PLC	3/20/18	BBB-	EUR	6,750		38,982			(235,326	)		274,308
Republic of Italy		1.00%	Barclays Bank PLC	3/20/18	BBB-	USD	105		276			(4,598	)		4,874
Bayerische Landesbank Gtd.		1.00%	Barclays Bank PLC	12/20/18	Not Rated	EUR	4,630		59,374			10,643			48,731
iTraxx Sub Financials Series 20 Version 1		5.00%	Barclays Bank PLC	12/20/18	BBB	EUR	7,670		1,150,357			1,334,875			(184,518	)
iTraxx Sub Financials Series 20 Version 1		5.00%	Citibank N.A.	12/20/18	BBB	EUR	10,970		1,645,296			1,891,956			(246,660	)
iTraxx Sub Financials Series 20 Version 1		5.00%	Deutsche Bank AG	12/20/18	BBB	EUR	5,480		821,905			949,429			(127,524	)
CNH Industrial NV		5.00%	Citibank N.A.	3/20/19	BB+	EUR	1,630		221,658			255,843			(34,185	)
CNH Industrial NV		5.00%	Citibank N.A.	3/20/19	BB+	EUR	1,630		221,658			260,813			(39,155	)
Astaldi SpA		5.00%	Barclays Bank PLC	6/20/19	B+	EUR	308		16,089			4,939			11,150
Astaldi SpA		5.00%	Credit Suisse International	6/20/19	B+	EUR	462		24,133			2,883			21,250
Astaldi SpA		5.00%	Credit Suisse International	6/20/19	B+	EUR	310		16,193			9,922			6,271
Astaldi SpA		5.00%	Deutsche Bank AG	6/20/19	B+	EUR	302		15,795			10,404			5,391
Astaldi SpA		5.00%	Goldman Sachs International	6/20/19	B+	EUR	468		24,426			14,966			9,460
Transocean, Inc.		1.00%	Goldman Sachs International	6/20/19	BB+	USD	1,550		(240,562	)		(38,571	)		(201,991	)
Abengoa SA		5.00%	Credit Suisse International	9/20/19	B+	EUR	1,000		(191,005	)		(168,414	)		(22,591	)
ArcelorMittal		1.00%	Barclays Bank PLC	9/20/19	BB	EUR	890		(46,808	)		(67,968	)		21,160
ArcelorMittal		1.00%	Barclays Bank PLC	9/20/19	BB	EUR	890		(46,808	)		(65,227	)		18,419
ArcelorMittal		1.00%	Citibank N.A.	9/20/19	BB	EUR	1,780		(93,616	)		(134,187	)		40,571
ArcelorMittal		1.00%	Credit Suisse International	9/20/19	BB	EUR	1,780		(93,617	)		(130,453	)		36,836

See Notes to Financial Statements.

64 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC credit default swaps — sold protection outstanding were as follows: (continued)

Issuer/Index	Receive Fixed Rate		Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Abengoa SA		5.00%	Citibank N.A.	12/20/19	B+	EUR	36	$	(7,077	)	$	(6,787	)	$	(290	)
Abengoa SA		5.00%	Credit Suisse International	12/20/19	B+	EUR	805		(158,421	)		(192,915	)		34,494
Abengoa SA		5.00%	Credit Suisse International	12/20/19	B+	EUR	565		(111,189	)		(144,190	)		33,001
Abengoa SA		5.00%	Credit Suisse International	12/20/19	B+	EUR	560		(110,206	)		(111,884	)		1,678
AK Steel Corp.		5.00%	Citibank N.A.	12/20/19	B-	USD	6,800		(878,043	)		(621,061	)		(256,982	)
AK Steel Corp.		5.00%	JPMorgan Chase Bank N.A.	12/20/19	B-	USD	3,500		(451,934	)		(297,142	)		(154,792	)
Altice Finco SA		5.00%	Citibank N.A.	12/20/19	B-	EUR	670		46,860			9,267			37,593
ArcelorMittal		1.00%	Citibank N.A.	12/20/19	BB	EUR	1,330		(84,233	)		(97,420	)		13,187
Transocean, Inc.		1.00%	Bank of America N.A.	12/20/19	BB+	USD	4,200		(785,848	)		(303,269	)		(482,579	)
Transocean, Inc.		1.00%	Bank of America N.A.	12/20/19	BB+	USD	3,580		(669,841	)		(244,038	)		(425,803	)
Transocean, Inc.		1.00%	JPMorgan Chase Bank N.A.	12/20/19	BB+	USD	3,580		(669,841	)		(271,661	)		(398,180	)
Abengoa SA		5.00%	Barclays Bank PLC	3/20/20	B+	EUR	1,715		(347,842	)		(264,431	)		(83,411	)
Abengoa SA		5.00%	Goldman Sachs International	3/20/20	B+	EUR	1,025		(207,894	)		(131,247	)		(76,647	)
Abengoa SA		5.00%	Goldman Sachs International	3/20/20	B+	EUR	685		(138,934	)		(87,711	)		(51,223	)
AK Steel Corp.		5.00%	Citibank N.A.	3/20/20	B-	USD	3,750		(525,079	)		(420,039	)		(105,040	)
AK Steel Corp.		5.00%	Citibank N.A.	3/20/20	B-	USD	1,450		(203,031	)		(159,200	)		(43,831	)
Bank of America Corp.		1.00%	Barclays Bank PLC	3/20/20	A-	USD	15,800		243,810			190,486			53,324
BP PLC		1.00%	BNP Paribas S.A.	3/20/20	A	EUR	8,280		148,467			134,306			14,161
BP PLC		1.00%	BNP Paribas S.A.	3/20/20	A	EUR	5,530		99,158			86,743			12,415
BP PLC		1.00%	Citibank N.A.	3/20/20	A	EUR	5,368		96,252			98,950			(2,698	)
Chesapeake Energy Corp.		5.00%	JPMorgan Chase Bank N.A.	3/20/20	BB+	USD	6,800		(84,333	)		569,450			(653,783	)
Chesapeake Energy Corp.		5.00%	JPMorgan Chase Bank N.A.	3/20/20	BB+	USD	3,175		(39,376	)		243,051			(282,427	)
Chesapeake Energy Corp.		5.00%	Morgan Stanley Capital Services LLC	3/20/20	BB+	USD	3,500		(43,406	)		241,409			(284,815	)
Chesapeake Energy Corp.		5.00%	Morgan Stanley Capital Services LLC	3/20/20	BB+	USD	1,258		(15,602	)		89,885			(105,487	)
Citigroup, Inc.		1.00%	Barclays Bank PLC	3/20/20	A-	USD	15,800		164,482			169,013			(4,531	)
The Goldman Sachs Group, Inc.		1.00%	Barclays Bank PLC	3/20/20	A-	USD	15,800		96,834			69,536			27,298
JPMorgan Chase and Co.		1.00%	Barclays Bank PLC	3/20/20	A	USD	15,800		259,509			233,599			25,910
Morgan Stanley		1.00%	Barclays Bank PLC	3/20/20	A-	USD	15,800		164,040			83,674			80,366
Novo Banco SA		5.00%	BNP Paribas S.A.	3/20/20	Not Rated	EUR	1,815		169,458			166,117			3,341
Novo Banco SA		5.00%	BNP Paribas S.A.	3/20/20	Not Rated	EUR	1,815		169,458			166,117			3,341
Republic of Italy		1.00%	Goldman Sachs International	3/20/20	BBB-	USD	19,000		(277,670	)		(126,603	)		(151,067	)
Royal Dutch Shell PLC		1.00%	Bank of America N.A.	3/20/20	AA	EUR	2,160		55,957			47,816			8,141
Royal Dutch Shell PLC		1.00%	Barclays Bank PLC	3/20/20	AA	EUR	1,230		31,864			28,619			3,245
Royal Dutch Shell PLC		1.00%	Barclays Bank PLC	3/20/20	AA	EUR	1,220		31,605			28,386			3,219
Royal Dutch Shell PLC		1.00%	Barclays Bank PLC	3/20/20	AA	EUR	615		15,932			14,138			1,794
Royal Dutch Shell PLC		1.00%	BNP Paribas S.A.	3/20/20	AA	EUR	3,310		85,749			78,902			6,847
Royal Dutch Shell PLC		1.00%	BNP Paribas S.A.	3/20/20	AA	EUR	2,200		56,854			51,194			5,660
Royal Dutch Shell PLC		1.00%	Citibank N.A.	3/20/20	AA	EUR	2,160		55,956			50,337			5,619
Royal Dutch Shell PLC		1.00%	Citibank N.A.	3/20/20	AA	EUR	1,220		31,605			27,690			3,915
Royal Dutch Shell PLC		1.00%	Citibank N.A.	3/20/20	AA	EUR	1,220		31,605			27,690			3,915
Royal Dutch Shell PLC		1.00%	Citibank N.A.	3/20/20	AA	EUR	1,210		31,270			30,218			1,052
Transocean, Inc.		1.00%	Barclays Bank PLC	3/20/20	BB+	USD	15,400		(3,099,972	)		(3,677,234	)		577,262
Transocean, Inc.		1.00%	Barclays Bank PLC	3/20/20	BB+	USD	5,100		(1,026,614	)		(1,041,538	)		14,924
Transocean, Inc.		1.00%	Barclays Bank PLC	3/20/20	BB+	USD	3,400		(684,409	)		(639,408	)		(45,001	)
Transocean, Inc.		1.00%	Barclays Bank PLC	3/20/20	BB+	USD	2,000		(402,594	)		(425,468	)		22,874

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 65

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC credit default swaps — sold protection outstanding were as follows: (continued)

Issuer/Index	Receive Fixed Rate			Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Transocean, Inc.		1.00	%	Goldman Sachs International	3/20/20	BB+	USD	5,200	$	(1,046,744	)	$	(1,435,167	)	$	388,423
United Rentals, Inc.		5.00	%	Barclays Bank PLC	3/20/20	BB-	USD	3,400		392,153			348,011			44,142
United Rentals, Inc.		5.00	%	Goldman Sachs International	3/20/20	BB-	USD	3,200		369,085			329,183			39,902
United Rentals, Inc.		5.00	%	Goldman Sachs International	3/20/20	BB-	USD	3,200		369,085			329,183			39,902
Volkswagen AG		1.00	%	Credit Suisse International	3/20/20	A	EUR	6,995		146,503			143,729			2,774
Volkswagen AG		1.00	%	Credit Suisse International	3/20/20	A	EUR	6,990		146,398			143,626			2,772
Volkswagen AG		1.00	%	Credit Suisse International	3/20/20	A	EUR	6,990		146,399			160,395			(13,996	)
Volkswagen AG		1.00	%	JPMorgan Chase Bank N.A.	3/20/20	A	EUR	15,495		324,527			326,926			(2,399	)
Wells Fargo & Co.		1.00	%	Barclays Bank PLC	3/20/20	A+	USD	15,800		377,827			356,966			20,861
Abengoa SA		5.00	%	Barclays Bank PLC	6/20/20	B+	EUR	685		(143,272	)		(143,567	)		295
Abengoa SA		5.00	%	BNP Paribas S.A.	6/20/20	B+	EUR	727		(151,987	)		(128,171	)		(23,816	)
Abengoa SA		5.00	%	BNP Paribas S.A.	6/20/20	B+	EUR	484		(101,324	)		(84,195	)		(17,129	)
Abengoa SA		5.00	%	Credit Suisse International	6/20/20	B+	EUR	685		(143,271	)		(145,356	)		2,085
Abengoa SA		5.00	%	Goldman Sachs International	6/20/20	B+	EUR	1,710		(357,656	)		(260,510	)		(97,146	)
Abengoa SA		5.00	%	Goldman Sachs International	6/20/20	B+	EUR	685		(143,272	)		(143,567	)		295
Bayerische Motoren Werke AG		1.00	%	Bank of America N.A.	6/20/20	A+	EUR	8,825		236,197			246,869			(10,672	)
Bayerische Motoren Werke AG		1.00	%	Barclays Bank PLC	6/20/20	A+	EUR	8,785		235,125			280,779			(45,654	)
Bayerische Motoren Werke AG		1.00	%	Goldman Sachs International	6/20/20	A+	EUR	5,867		157,027			184,351			(27,324	)
Bayerische Motoren Werke AG		1.00	%	Morgan Stanley Capital Services LLC	6/20/20	A+	EUR	8,948		239,488			276,586			(37,098	)
Federative Republic of Brazil		1.00	%	BNP Paribas S.A.	6/20/20	BBB-	USD	5,300		(378,281	)		(311,702	)		(66,579	)
The Goldman Sachs Group, Inc.		1.00	%	Bank of America N.A.	6/20/20	A-	USD	40,280		186,114			223,238			(37,124	)
MGM Resorts International		5.00	%	BNP Paribas S.A.	6/20/20	B+	USD	5,000		427,434			476,563			(49,129	)
MGM Resorts International		5.00	%	Citibank N.A.	6/20/20	B+	USD	5,000		427,435			433,783			(6,348	)
Rio Tinto PLC		1.00	%	BNP Paribas S.A.	6/20/20	A-	USD	13,200		5,698			(4,502	)		10,200
Rio Tinto PLC		1.00	%	Deutsche Bank AG	6/20/20	A-	USD	10,100		4,359			16,068			(11,709	)
United Mexican States		1.00	%	Bank of America N.A.	6/20/20	BBB+	USD	61,427		(794,282	)		(623,530	)		(170,752	)
VBP PLC		1.00	%	JPMorgan Chase Bank N.A.	6/20/20	A	EUR	13,000		221,194			198,741			22,453
Vodafone Group PLC		1.00	%	Goldman Sachs International	6/20/20	BBB+	EUR	2,600		16,133			20,655			(4,522	)
Vougeot Bidco PLC		5.00	%	Credit Suisse International	6/20/20	B	EUR	2,590		(541,712	)		302,889			(844,601	)
Abengoa SA		5.00	%	Goldman Sachs International	9/20/20	B+	EUR	2,800		(604,009	)		(552,023	)		(51,986	)
Abengoa SA		5.00	%	JPMorgan Chase Bank N.A.	9/20/20	B+	EUR	800		(172,575	)		(163,385	)		(9,190	)
Federative Republic of Brazil		1.00	%	Bank of America N.A.	9/20/20	BBB-	USD	9,015		(697,364	)		(621,619	)		(75,745	)
Federative Republic of Brazil		1.00	%	BNP Paribas S.A.	9/20/20	BBB-	USD	62,198		(4,811,416	)		(4,327,751	)		(483,665	)
Federative Republic of Brazil		1.00	%	BNP Paribas S.A.	9/20/20	BBB-	USD	62,198		(4,811,408	)		(4,376,789	)		(434,619	)
Federative Republic of Brazil		1.00	%	BNP Paribas S.A.	9/20/20	BBB-	USD	62,198		(4,814,862	)		(4,376,789	)		(438,073	)
Federative Republic of Brazil		1.00	%	Citibank N.A.	9/20/20	BBB-	USD	21,267		(1,646,304	)		(1,555,387	)		(90,917	)
Novo Banco SA		5.00	%	BNP Paribas S.A.	9/20/20	Not Rated	EUR	2,160		220,243			214,029			6,214
Russian Federation		1.00	%	Bank of America N.A.	9/20/20	BB+	USD	47,565		(5,118,283	)		(5,505,822	)		387,539

See Notes to Financial Statements.

66 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC credit default swaps — sold protection outstanding were as follows: (concluded)

Issuer/Index	Receive Fixed Rate			Counterparty	Expiration Date	Credit Rating1	Notional Amount (000)2		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%	Bank of America N.A.	9/20/20	BBB+	USD	6,400	$	(100,060	)	$	(108,356	)	$	8,296
United Mexican States		1.00	%	BNP Paribas S.A.	9/20/20	BBB+	USD	62,314		(974,233	)		(811,936	)		(162,297	)
United Mexican States		1.00	%	JPMorgan Chase Bank N.A.	9/20/20	BBB+	USD	124,146		(1,940,949	)		(1,653,127	)		(287,822	)
United Mexican States		1.00	%	JPMorgan Chase Bank N.A.	9/20/20	BBB+	USD	61,427		(960,378	)		(703,427	)		(256,951	)
Glencore International AG		1.00	%	BNP Paribas S.A.	6/20/21	BBB	EUR	1,050		(60,740	)		(114,519	)		53,779
Glencore International AG		1.00	%	Citibank N.A.	6/20/21	BBB	EUR	2,100		(121,479	)		(235,749	)		114,270
Republic of France		0.25	%	Barclays Bank PLC	6/20/23	AA	USD	4,575		(104,548	)		(282,388	)		177,840
Republic of France		0.25	%	Citibank N.A.	6/20/23	AA	USD	4,940		(112,889	)		(322,012	)		209,123
Republic of France		0.25	%	JPMorgan Chase Bank N.A.	6/20/23	AA	USD	4,935		(112,774	)		(298,906	)		186,132
CMBX.NA Series 7 BBB-		3.00	%	Morgan Stanley Capital Services LLC	1/17/47	BBB-	USD	7,880		(217,832	)		(52,229	)		(165,603	)
CMBX.NA Series 7 BBB-		3.00	%	Morgan Stanley Capital Services LLC	1/17/47	BBB-	USD	7,880		(217,831	)		(42,190	)		(175,641	)
CMBX.NA Series 4 AM		0.50	%	Deutsche Bank AG	2/17/51	BB	USD	1,925		(38,051	)		(272,128	)		234,077
Total									$	(31,060,961	)	$	(27,425,038	)	$	(3,635,923	)

¹  Using S&P’s rating of the issuer or the underlying securities of the index, as applicable.

²  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

• As of June 30, 2015, OTC interest rate swaps outstanding were as follows:

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
12.30%1	1-day BZDIOVER	Bank of America N.A.	1/04/16	BRL	561,553	$	1,828,982		$	9,358		$	1,819,624
12.30%2	1-day BZDIOVER	Credit Suisse International	1/04/16	BRL	361,578		(1,177,659	)		(6,238	)		(1,171,421	)
11.18%2	1-day BZDIOVER	Credit Suisse International	1/04/16	BRL	329,647		(1,895,146	)		(3,310	)		(1,891,836	)
11.43%2	1-day BZDIOVER	Credit Suisse International	1/04/16	BRL	217,151		(889,936	)		(3,453	)		(886,483	)
11.36%2	1-day BZDIOVER	Credit Suisse International	1/04/16	BRL	196,541		(838,850	)		(1,392	)		(837,458	)
11.12%2	1-day BZDIOVER	Credit Suisse International	1/04/16	BRL	56,657		(340,910	)		(233	)		(340,677	)
12.00%2	1-day BZDIOVER	Deutsche Bank AG	1/04/16	BRL	231,659		(266,789	)		(6,384	)		(260,405	)
11.26%2	1-day BZDIOVER	Deutsche Bank AG	1/04/16	BRL	56,983		(299,239	)		(624	)		(298,615	)
11.85%2	1-day BZDIOVER	Goldman Sachs International	1/04/16	BRL	224,448		(391,357	)		(2,857	)		(388,500	)
12.14%1	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	613,589		650,648			15,552			635,096
11.83%1	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	315,554		662,063			3,614			658,449
12.13%1	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	267,136		299,075			7,177			291,898
11.80%1	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	248,593		11,645			3,298			8,347
11.85%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	224,448		(391,357	)		(2,857	)		(388,500	)
11.99%1	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	183,763		209,486			2,445			207,041
11.85%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	174,861		(295,215	)		(2,244	)		(292,971	)
11.91%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/16	BRL	105,877		262,306			(1,223	)		263,529
3.69%2	28-day MXIBTIIE	Bank of America N.A.	6/20/16	MXN	2,889,143		48,983			(1,587	)		50,570
3.70%2	28-day MXIBTIIE	Bank of America N.A.	6/20/16	MXN	2,889,143		76,441			(1,665	)		78,106
3.69%2	28-day MXIBTIIE	Bank of America N.A.	6/20/16	MXN	1,824,722		36,717			(1,019	)		37,736
4.19%2	28-day MXIBTIIE	Deutsche Bank AG	12/16/16	MXN	982,582		284,425			(3,740	)		288,165
1.94%2	3-month KRW Certificate of Deposit	Bank of America N.A.	2/10/17	KRW	114,660,301		413,813			431			413,382
1.91%2	3-month KRW Certificate of Deposit	Barclays Bank PLC	2/10/17	KRW	89,180,233		290,581			376			290,205
1.94%2	3-month KRW Certificate of Deposit	UBS AG	2/10/17	KRW	222,950,584		820,261			817			819,444

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 67

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC interest rate swaps outstanding were as follows: (continued)

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
1.91%2	3-month KRW Certificate of Deposit	UBS AG	2/10/17	KRW	87,587,729	$	285,392		$	369		$	285,023
1.96%2	3-month KRW Certificate of Deposit	UBS AG	2/11/17	KRW	160,621,152		642,823			526			642,297
1.82%2	3-month KRW Certificate of Deposit	JPMorgan Chase Bank N.A.	3/13/17	KRW	160,000,000		376,481			4,204			372,277
1.68%2	3-month KRW Certificate of Deposit	UBS AG	4/17/17	KRW	460,000,000		15,078			9,799			5,279
1.68%2	3-month KRW Certificate of Deposit	Citibank N.A.	4/20/17	KRW	134,350,646		(8,212	)		947			(9,159	)
1.68%2	3-month KRW Certificate of Deposit	UBS AG	4/20/17	KRW	147,813,908		(9,035	)		1,042			(10,077	)
2.25%2	7-day China Fixing Repo Rates	Bank of America N.A.	5/22/17	CNY	622,208		(1,095	)		(1,582	)		487
2.27%2	7-day China Fixing Repo Rates	Bank of America N.A.	5/27/17	CNY	627,549		37,190			(539	)		37,729
2.24%2	7-day China Fixing Repo Rates	JPMorgan Chase Bank N.A.	5/27/17	CNY	616,867		(32,962	)		(378	)		(32,584	)
1.68%2	3-month KRW Certificate of Deposit	Citibank N.A.	6/04/17	KRW	170,007,850		(59,259	)		776			(60,035	)
1.70%2	3-month KRW Certificate of Deposit	Bank of America N.A.	6/05/17	KRW	110,823,954		13,841			1,276			12,565
1.67%2	3-month KRW Certificate of Deposit	Barclays Bank PLC	6/08/17	KRW	115,133,775		(52,169	)		511			(52,680	)
1.67%2	3-month KRW Certificate of Deposit	Citibank N.A.	6/08/17	KRW	114,064,421		(51,684	)		507			(52,191	)
4.35%1	28-day MXIBTIIE	Bank of America N.A.	11/17/17	MXN	312,503		(11,236	)		1,646			(12,882	)
1.71%1	6-month WIBOR	Barclays Bank PLC	3/06/18	PLN	337,130		993,107			—			993,107
1.71%1	6-month WIBOR	BNP Paribas S.A.	3/06/18	PLN	358,015		1,054,630			—			1,054,630
1.73%1	6-month WIBOR	JPMorgan Chase Bank N.A.	3/06/18	PLN	1,034,285		2,886,774			—			2,886,774
4.69%1	28-day MXIBTIIE	Bank of America N.A.	3/16/18	MXN	344,478		(121,454	)		2,370			(123,824	)
4.55%1	28-day MXIBTIIE	Barclays Bank PLC	3/21/18	MXN	338,099		(32,445	)		4,306			(36,751	)
4.57%1	28-day MXIBTIIE	Citibank N.A.	3/21/18	MXN	338,099		(43,955	)		4,375			(48,330	)
1.74%1	6-month WIBOR	Goldman Sachs International	3/23/18	PLN	473,851		1,205,311			—			1,205,311
1.76%1	6-month WIBOR	JPMorgan Chase Bank N.A.	3/23/18	PLN	426,149		1,046,742			—			1,046,742
2.02%1	6-month WIBOR	Morgan Stanley Capital Services LLC	6/03/18	PLN	525,060		532,824			—			532,824
2.26%1	6-month WIBOR	Morgan Stanley Capital Services LLC	6/18/18	PLN	890,305		(618,615	)		—			(618,615	)
2.25%1	6-month WIBOR	Citibank N.A.	6/19/18	PLN	92,970		(59,168	)		—			(59,168	)
1.91%1	6-month BUBOR	Citibank N.A.	6/26/18	HUF	457,090		122			—			122
1.91%1	6-month BUBOR	JPMorgan Chase Bank N.A.	6/26/18	HUF	25,871,465		20,197			—			20,197
1.92%1	6-month BUBOR	JPMorgan Chase Bank N.A.	6/26/18	HUF	25,871,445		(19,632	)		—			(19,632	)
4.85%1	28-day MXIBTIIE	Bank of America N.A.	11/01/18	MXN	239,344		(43,384	)		656			(44,040	)
4.72%1	28-day MXIBTIIE	Citibank N.A.	11/14/18	MXN	367,405		27,487			936			26,551
5.05%1	28-day MXIBTIIE	Citibank N.A.	11/15/19	MXN	258,803		31,746			2,473			29,273
5.04%1	28-day MXIBTIIE	Bank of America N.A.	11/18/19	MXN	245,625		66,724			780			65,944
4.81%2	28-day MXIBTIIE	Bank of America N.A.	1/28/20	MXN	222,914		(251,467	)		—			(251,467	)
5.42%2	28-day MXIBTIIE	Goldman Sachs International	3/06/20	MXN	468,238		230,373			(6,111	)		236,484

See Notes to Financial Statements.

68 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

As of June 30, 2015, OTC interest rate swaps outstanding were as follows: (concluded)

Fixed Rate	Floating Rate	Counterparty	Expiration Date	Notional Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
5.23%2	28-day MXIBTIIE	Bank of America N.A.	3/12/20	MXN	628,646	$	(36,993	)	$	(1,844	)	$	(35,149	)
2.60%2	7-day China Fixing Repo Rates	Goldman Sachs International	5/22/20	CNY	140,591		64,057			(1,376	)		65,433
2.65%2	7-day China Fixing Repo Rates	Goldman Sachs International	5/22/20	CNY	126,532		110,578			(1,359	)		111,937
2.60%2	7-day China Fixing Repo Rates	HSBC Bank PLC	5/25/20	CNY	267,053		120,950			(636	)		121,586
2.63%2	7-day China Fixing Repo Rates	JPMorgan Chase Bank N.A.	5/27/20	CNY	133,553		92,831			(361	)		93,192
2.65%2	7-day China Fixing Repo Rates	JPMorgan Chase Bank N.A.	5/27/20	CNY	132,252		112,040			(369	)		112,409
7.15%1	1-day MIBOR	HSBC Bank PLC	6/04/20	INR	1,810,344		(73,106	)		274			(73,380	)
11.41%1	1-day BZDIOVER	Bank of America N.A.	1/04/21	BRL	51,522		1,074,671			1,187			1,073,484
12.50%2	1-day BZDIOVER	Bank of America N.A.	1/04/21	BRL	45,049		(129,147	)		1,943			(131,090	)
12.35%2	1-day BZDIOVER	Bank of America N.A.	1/04/21	BRL	37,899		(211,043	)		861			(211,904	)
12.05%2	1-day BZDIOVER	Bank of America N.A.	1/04/21	BRL	29,995		(336,814	)		(270	)		(336,544	)
12.44%2	1-day BZDIOVER	Citibank N.A.	1/04/21	BRL	68,361		(293,163	)		2,468			(295,631	)
12.35%2	1-day BZDIOVER	Credit Suisse International	1/04/21	BRL	38,601		(214,949	)		877			(215,826	)
12.41%2	1-day BZDIOVER	Credit Suisse International	1/04/21	BRL	26,249		(128,022	)		476			(128,498	)
12.46%2	1-day BZDIOVER	Credit Suisse International	1/04/21	BRL	26,183		(106,024	)		452			(106,476	)
11.07%1	1-day BZDIOVER	Goldman Sachs Bank USA	1/04/21	BRL	39,379		1,101,268			189			1,101,079
12.43%2	1-day BZDIOVER	HSBC Bank PLC	1/04/21	BRL	55,819		(248,428	)		2,028			(250,456	)
11.84%2	1-day BZDIOVER	HSBC Bank PLC	1/04/21	BRL	20,077		(305,877	)		(436	)		(305,441	)
12.52%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/21	BRL	76,616		(220,862	)		2,439			(223,301	)
12.50%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/21	BRL	74,504		(213,587	)		3,214			(216,801	)
12.05%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/21	BRL	56,607		(450,137	)		(1,342	)		(448,795	)
11.08%1	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/21	BRL	17,228		482,968			(17	)		482,985
11.72%2	1-day BZDIOVER	JPMorgan Chase Bank N.A.	1/04/21	BRL	1,450		(32,843	)		241			(33,084	)
3.27%1	3-month LIBOR	Deutsche Bank AG	5/16/21	USD	5,230		(412,423	)		—			(412,423	)
12.26%2	1-day BZDIOVER	Citibank N.A.	1/02/23	BRL	60,127		(418,919	)		3,057			(421,976	)
12.46%2	1-day BZDIOVER	Credit Suisse International	1/02/23	BRL	119,022		(342,903	)		2,596			(345,499	)
5.84%2	28-day MXIBTIIE	Deutsche Bank AG	11/14/24	MXN	378,409		(790,405	)		(1,830	)		(788,575	)
5.85%2	28-day MXIBTIIE	Deutsche Bank AG	11/14/24	MXN	164,526		(337,576	)		(794	)		(336,782	)
5.86%2	28-day MXIBTIIE	Credit Suisse International	12/26/24	MXN	130,200		(280,376	)		(598	)		(279,778	)
5.73%1	28-day MXIBTIIE	Bank of America N.A.	1/03/25	MXN	235,720		641,497			3,135			638,362
5.66%2	28-day MXIBTIIE	Bank of America N.A.	1/06/25	MXN	270,000		(830,132	)		(1,162	)		(828,970	)
5.55%2	28-day MXIBTIIE	Bank of America N.A.	1/13/25	MXN	240,337		(863,908	)		(987	)		(862,921	)
5.88%2	28-day MXIBTIIE	Goldman Sachs International	1/28/25	MXN	290,873		(624,689	)		(1,292	)		(623,397	)
5.95%2	28-day MXIBTIIE	Credit Suisse International	1/29/25	MXN	250,370		(428,924	)		(1,189	)		(427,735	)
6.46%2	28-day MXIBTIIE	Credit Suisse International	5/30/25	MXN	609,670		333,185			(10,252	)		343,437
6.46%2	28-day MXIBTIIE	Credit Suisse International	5/30/25	MXN	220,328		120,409			(3,705	)		124,114
6.46%2	28-day MXIBTIIE	Deutsche Bank AG	5/30/25	MXN	279,342		152,661			(4,697	)		157,358
6.33%2	28-day MXIBTIIE	Citibank N.A.	6/09/25	MXN	121,648		(20,632	)		(665	)		(19,967	)
3.05%2	6-month WIBOR	Morgan Stanley Capital Services LLC	6/18/25	PLN	295,605		459,239			—			459,239
Total						$	3,674,510		$	23,387		$	3,651,123

¹  Fund pays the fixed rate and receives the floating rate.

²  Fund pays the floating rate and receives the fixed rate.

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 69

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

• As of June 30, 2015, OTC total return swaps outstanding were as follows:

Reference Entity	Fixed Rate(Amount)/ Floating Rate	Counterparty	Expiration Date	Notional Amount/ Contract Amount (000)		Value			Premiums Paid (Received)		Unrealized Appreciation (Depreciation)
Repsol SA	0% Fixed1	Citibank N.A.	7/17/15		213	$	(3,740	)		—	$	(3,740	)
Repsol SA	3-month EURIBOR minus 0.50%1	Citibank N.A.	7/17/15		7,232		(126,986	)		—		(126,986	)
Telecom Italia SpA	3-month EURIBOR minus 0.30%1	BNP Paribas S.A.	7/17/15		6,976,744		(2,026,960	)		—		(2,026,960	)
Bangkok Dusit Medical Services PCL	3-month LIBOR minus 2.50%1	Credit Suisse International	9/17/15		5,000,000		(42,733	)		—		(42,733	)
Aperam SA	3-month EURIBOR minus 0.25%1	BNP Paribas S.A.	9/18/15		13,957		(140,545	)		—		(140,545	)
Aperam SA	3-month EURIBOR minus 0.35%1	JPMorgan Chase Bank N.A.	9/30/15		3,372		(41,544	)		—		(41,544	)
Telecom Italia SpA	3-month EURIBOR minus 0.25%1	JPMorgan Chase Bank N.A.	11/10/15		6,557,018		(2,068,226	)		—		(2,068,226	)
Telecom Italia SpA	3-month EURIBOR minus 0.30%1	JPMorgan Chase Bank N.A.	11/10/15		648,333		(165,426	)		—		(165,426	)
Repsol SA	3-month EURIBOR minus 0.20%1	Goldman Sachs International	11/12/15		274,645		502,702			—		502,702
Banco Bilbao Vizcaya Argentaria SA	1-month EURIBOR minus 0.35%1	BNP Paribas S.A.	1/16/16		187,832		14,692			—		14,692
Aperam SA	3-month EURIBOR minus 0.50%1	JPMorgan Chase Bank N.A.	1/18/16		21,544		(281,249	)		—		(281,249	)
Repsol SA	3-month EURIBOR minus 0.30%1	BNP Paribas S.A.	1/18/16		7,423		(4,188	)		—		(4,188	)
Standard Chartered PLC	1-month LIBOR minus 0.40%1	Goldman Sachs International	1/18/16		128,484		(293,130	)		—		(293,130	)
Standard Chartered PLC	1-month LIBOR minus 0.40%1	Goldman Sachs International	1/18/16		5,111		(81,832	)		—		(81,832	)
Volkswagen AG	3-month EURIBOR minus 0.43%1	BNP Paribas S.A.	1/18/16		21,856		(243,821	)		—		(243,821	)
	3-month
Volkswagen AG	EURIBOR minus 0.43%1	BNP Paribas S.A.	1/18/16		20,310		(137,208	)		—		(137,208	)
Standard Chartered PLC	3-month LIBOR minus 0.25%1	BNP Paribas S.A.	3/09/16		121,825		25,122			—		25,122
Standard Chartered PLC	3-month LIBOR minus 0.25%1	BNP Paribas S.A.	3/09/16		4,847		(77,605	)		—		(77,605	)
Altice SA	3-month EURIBOR minus 0.40%1	BNP Paribas S.A.	3/11/16		17,911		(474,446	)		—		(474,446	)
Volkswagen AG	3-month EURIBOR minus 0.10%1	JPMorgan Chase Bank N.A.	3/19/16		71,024		3,009,667			—		3,009,667
Vincom JSC	3-month LIBOR plus 0.75%2	Citibank N.A.	4/13/16		98,042		(25,350	)		—		(25,350	)
Vincom JSC	3-month LIBOR plus 0.75%2	Citibank N.A.	4/13/16		52,200		(11,087	)		—		(11,087	)
CaixaBank SA	3-month EURIBOR minus 0.50%1	Goldman Sachs International	4/21/16		408,558		29,798			—		29,798

See Notes to Financial Statements.

70 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

      As of June 30, 2015, OTC total return swaps outstanding were as follows: (continued)

Reference Entity	Fixed Rate(Amount)/ Floating Rate	Counterparty	Expiration Date	Notional Amount/ Contract Amount (000)		Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Telecom Italia SpA	3-month EURIBOR minus 0.50%1	Bank of America N.A.	4/29/16		4,185,508	$	(372,513	)		—		$	(372,513	)
Telecom Italia SpA	3-month EURIBOR minus 0.01%1	Bank of America N.A.	5/09/16		4,213,662		(465,168	)		—			(465,168	)
Volkswagen AG	3-month EURIBOR minus 0.20%1	Bank of America N.A.	5/22/16		55,142		1,346,467			—			1,346,467
CaixaBank SA	3-month EURIBOR minus 0.15%1	Bank of America N.A.	5/26/16		396,362		55,312			—			55,312
Telecom Italia SpA	3-month EURIBOR minus 0.55%1	BNP Paribas S.A.	6/10/16		583,736		10,236			—			10,236
Telecom Italia SpA	3-month EURIBOR minus 0.50%1	BNP Paribas S.A.	6/13/16		1,552,862		13,453			—			13,453
Telecom Italia SpA	3-month EURIBOR minus 0.80%1	BNP Paribas S.A.	6/17/16		2,149,015		42,384			—			42,384
Altice SA	3-month EURIBOR minus 0.55%1	BNP Paribas S.A.	6/27/16		599		28,784			—			28,784
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Bank of America N.A.	1/12/41	USD	14,671		3,812		$	(68,934	)		72,746
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR4	Credit Suisse International	1/12/41	USD	29,304		(7,614	)		(266,918	)		259,304
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/41	USD	29,304		7,613			(160,585	)		168,198
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/41	USD	14,520		3,772			6,885			(3,113	)
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR4	Credit Suisse International	1/12/41	USD	14,407		(3,743	)		(126,976	)		123,233
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/41	USD	14,407		3,743			6,832			(3,089	)
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR4	JPMorgan Chase Bank N.A.	1/12/41	USD	14,671		(3,811	)		(124,461	)		120,650
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44	USD	29,515		76,842			(37,753	)		114,595
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44	USD	29,515		76,842			(25,285	)		102,127
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44	USD	29,515		76,842			8,365			68,477

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 71

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

      As of June 30, 2015, OTC total return swaps outstanding were as follows: (concluded)

Reference Entity	Fixed Rate(Amount)/ Floating Rate	Counterparty	Expiration Date	Notional Amount/ Contract Amount (000)			Value			Premiums Paid (Received)			Unrealized Appreciation (Depreciation)
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44		USD	29,439	$	76,644		$	(110,746	)	$	187,390
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44		USD	29,135		75,851			(170,429	)		246,280
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44		USD	29,135		75,852			(131,828	)		207,680
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR4	Credit Suisse International	1/12/44		USD	29,135		(75,852	)		(252,585	)		176,733
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR4	Credit Suisse International	1/12/44		USD	29,059		(75,654	)		(473,065	)		397,411
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR4	Credit Suisse International	1/12/44		USD	28,983		(75,456	)		(264,852	)		189,396
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44		USD	14,453		37,629			(110,057	)		147,686
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Credit Suisse International	1/12/44		USD	14,301		37,233			233,320			(196,087	)
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	Goldman Sachs Bank USA	1/12/44		USD	14,453		37,629			(105,540	)		143,169
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	1-month LIBOR3	JPMorgan Chase Bank N.A.	1/12/44		USD	14,682		38,223			(2,721	)		40,944
Return on Markit IOS 4.00%, 30- year, fixed rate Fannie Mae	3-month LIBOR3	Credit Suisse International	1/12/44		USD	29,439		76,644			164,042			(87,398	)
Total							$	(1,542,099	)	$	(2,013,291	)	$	471,192

¹  Fund pays the total return of the reference entity and receives the floating rate. Net payment made at termination.

²  Fund receives the total return of the reference entity and pays the floating rate. Net payment made at termination.

³  Fund pays the floating rate and receives the total return of the reference entity.

⁴  Fund pays the total return of the reference entity and receives the floating rate.

• As of June 30, 2015, OTC total return — variance swaps outstanding were as follows:

Index	Variance Strike Price	Counterparty	Expiration Date	Notional Amount/ Contract Amount (000)			Value		Premiums Paid (Received)		Unrealized Appreciation
EURO STOXX 50 Index	EUR 23.50EUR1	Barclays Bank PLC	6/17/16		EUR	11	$	39,180		—	$	39,180
S&P 500 Index	USD 22.00USD2	Barclays Bank PLC	6/17/16		USD	14		514,065		—		514,065
Total							$	553,245		—	$	553,245

¹ Fund receives the total return of the reference entity and pays the floating rate. Net payment made at termination.

² Fund pays the total return of the reference entity and receives the floating rate. Net payment made at termination.

See Notes to Financial Statements.

72 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

• Fair Value Measurements — Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial statement purposes. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities. The three levels of the fair value hierarchy are as follows:

• Level 1 – unadjusted quoted prices in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

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

• Level 3 – unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments and derivative financial instruments)

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to Note 2 of the Notes to Financial Statements.

As of June 30, 2015, the following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1			Level 2				Level 3			Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities			—		$	2,958,793,376			$	572,064,061		$	3,530,857,437
Common Stocks		$	96,562,316			31,570,191				—			128,132,507
Corporate Bonds			—			4,563,640,736				20,195,538			4,583,836,274
Floating Rate Loan Interests			—			742,215,667				83,087,759			825,303,426
Foreign Agency Obligations			—			241,646,072				—			241,646,072
Foreign Government Obligations			—			3,531,990,266				—			3,531,990,266
Investment Companies			482,165,808			—				—			482,165,808
Non-Agency Mortgage-Backed Securities			—			2,399,043,533				421,808,903			2,820,852,436
Preferred Securities			130,141,852			638,621,638				3,578,648			772,342,138
Taxable Municipal Bonds			—			1,127,432,425				—			1,127,432,425
U.S. Government Sponsored Agency Securities			—			19,649,010,294				—			19,649,010,294
U.S. Treasury Obligations			—			1,770,601,845				—			1,770,601,845
Warrants			—			—				1,136,740			1,136,740
Short-Term Securities:
Borrowed Bond Agreements			—			1,805,960,548				—			1,805,960,548
Money Market Funds			6,907,663,419			—				—			6,907,663,419
Options Purchased:
Credit Contracts			—			3,789,110				—			3,789,110
Equity Contracts			25,807,458			13,053,805				—			38,861,263
Foreign Currency Exchange Contracts			—			71,303,820				—			71,303,820
Interest Rate Contracts			7,942,140			16,625,742				—			24,567,882
Liabilities:
Investments:
Investments Sold Short			—			(9,016,230	)			—			(9,016,230	)
TBA Sale Commitments			—			(15,966,406,197	)			—			(15,966,406,197	)
Borrowed Bonds			—			(1,789,303,068	)			—			(1,789,303,068	)
Total		$	7,650,282,993		$	21,800,573,573				$  1,101,871,649		$	30,552,728,215

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 73

Consolidated Schedule of Investments (continued) BlackRock Strategic Income Opportunities Portfolio

	Level 1				Level 2				Level 3		Total
Derivative Financial Instruments1
Assets:
Credit contracts		$	—			$	24,143,728			—		$	24,143,728
Equity contracts			1,795,800				5,631,862			—			7,427,662
Foreign currency exchange contracts			2,005,575				82,565,532			—			84,571,107
Interest rate contracts			18,084,014				31,353,316			—			49,437,330
Liabilities:
Credit contracts			—				(29,308,807	)		—			(29,308,807	)
Equity contracts			(8,177,530	)			(7,083,757	)		—			(15,261,287	)
Foreign currency exchange contracts			(1,279,250	)			(274,690,975	)		—			(275,970,225	)
Interest rate contracts			(22,031,734	)			(56,974,243	)		—			(79,005,977	)
Total		$	(9,603,125	)		$	(224,363,344	)		—		$	(233,966,469	)

¹ Derivative financial instruments are swaps, financial futures contracts, forward foreign currency exchange contracts and options written. Swaps, financial futures contract s 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 June 30, 2015, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:

	Level 1			Level 2				Level 3		Total
Assets:
Foreign currency at value		$	157,022,606			—			—		$	157,022,606
Cash pledged for financial futures contracts			163,548,970			—			—			163,548,970
Cash pledged for centrally cleared swaps			48,394,820			—			—			48,394,820
Cash pledged as collateral for borrowed bond agreements			690,058			—			—			690,058
Cash pledged as collateral for OTC derivatives			55,274,000			—			—			55,274,000
Cash pledged as collateral for exchange-traded options			1,700,000			—			—			1,700,000
Liabilities:
Reverse repurchase agreements			—		$	(857,316,512	)		—			(857,316,512	)
Bank overdraft			—			(3,934,585	)		—			(3,934,585	)
Cash received as collateral for TBA commitments			—			(22,881,000	)		—			(22,881,000	)
Cash received as collateral for borrowed bond agreements			—			(8,719,265	)		—			(8,719,265	)
Cash received as collateral for OTC derivatives			—			(14,322,585	)		—			(14,322,585	)
Total		$	426,630,454		$	(907,173,947	)		—		$	(480,543,493	)

During the six months ended June 30, 2015, there were no transfers between Level 1 and Level 2.

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

	Asset- Backed Securities			Corporate Bonds			Floating Rate Loan Interests			Non-Agency Mortgage-Backed Securities			Preferred Securities			U.S. Government Sponsored Agency Securities			Warrants			Total
Assets:
Opening Balance, as of December 31, 2014	$	506,980,482		$	18,381,085		$	75,375,009		$	505,965,266		$	4,090,224		$	17,219,117		$	1,242,361		$	1,129,253,544
Transfers into Level 3		103,731,025			20,467,889			956,307			—			—			—			—			125,155,221
Transfers out of Level 32		(258,531,856	)		(5,124,000	)		(2,096,042	)		(163,371,490	)		—			(17,219,117	)		—			(446,342,505	)
Accrued discounts/premiums		687,990			46,991			(28,469	)		666,046			—			—			—			1,372,558
Net realized gain (loss)		733,423			(244,978	)		(287	)		2,056,987			—			—			246,057			2,791,202
Net change in unrealized appreciation (depreciation)3,4		8,749,072			(427,706	)		(998,337	)		31,633			(511,576	)		—			(31,923	)		6,811,163
Purchases		300,315,295			—			15,150,000			145,167,425			—			—			—			460,632,720
Sales		(90,601,370	)		(12,903,743	)		(5,270,422	)		(68,706,964	)		—			—			(319,755	)		(177,802,254	)
Closing Balance, as of June 30, 2015	$	572,064,061		$	20,195,538		$	83,087,759		$	421,808,903		$	3,578,648			—		$	1,136,740		$	1,101,871,649

See Notes to Financial Statements.

74 BLACKROCK FUNDS II JUNE 30, 2015

Consolidated Schedule of Investments (concluded) BlackRock Strategic Income Opportunities Portfolio

	Asset- Backed Securities		Corporate Bonds			Floating Rate Loan Interests			Non-Agency Mortgage-Backed Securities		Preferred Securities			U.S. Government Sponsored Agency Securities		Warrants			Total
Net change in unrealized appreciation (depreciation) on investments still held at June 30, 20154	$	8,823,875	$	(427,706	)	$	(972,093	)	$	188,124	$	(511,576	)		—	$	(31,923	)	$	7,068,701

²  As of December 31, 2014, the Fund used significant unobservable inputs in determining the value of certain investments. As of June 30, 2015, the Fund used observable inputs in determining the value of the same investments. As a result, investments with a beginning of period value of $446,342,505 transferred from Level 3 to Level 2 in the disclosure hierarchy.

³  Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.

⁴  Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at June 30, 2015 is generally due to investments no longer held or categorized as Level 3 at period end.

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

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 75

Statements of Assets and Liabilities

June 30, 2015 (Unaudited)	BlackRock Emerging Markets Flexible Dynamic Bond Portfolio		BlackRock Strategic Income Opportunities Portfolio1
Assets
Investments at value — unaffiliated2	$	50,545,144	$	41,088,589,339
Investments at value — affiliated3		3,906,773		7,228,864,371
Cash		205,625		—
Cash Pledged:
Collateral — borrowed bond agreements		—		690,058
Collateral — exchange-traded options		—		1,700,000
Collateral — OTC derivatives		—		55,274,000
Financial futures contracts		166,570		163,548,970
Centrally cleared swaps		347,820		48,394,820
Foreign currency at value4		1,294,440		157,022,606
TBA sale commitments receivable		—		15,970,124,959
Receivables:
Investments sold		1,995,568		594,048,894
Swaps		676,874		—
Capital shares sold		19,499		68,160,102
Interest		860,471		151,154,236
From the Manager		1,062		182,384
Principal paydowns		—		7,199
Dividends — unaffiliated		—		826,688
Dividends — affiliated		480		—
Swap premiums paid		3,187,976		37,309,219
Unrealized appreciation on forward foreign currency exchange contracts		674,891		82,565,532
Unrealized appreciation on OTC swaps		113,540		35,700,763
Variation margin receivable on financial futures contracts		1,284		9,257,130
Prepaid expenses		40,821		566,946
Total assets		64,038,838		65,693,988,216
Liabilities
Investments sold short at value5		—		9,016,230
Bank overdraft		—		3,934,585
Borrowed bonds at value6		—		1,789,303,068
Options written at value7		214,027		103,175,061
TBA sale commitments at value8		—		15,966,406,197
Reverse repurchase agreements		—		857,316,512
Cash received:
Collateral — borrowed bond agreements		—		8,719,265
Collateral — OTC derivatives		4,170,000		14,322,585
Collateral — TBA commitments		—		22,881,000
Payables:
Investments purchased		2,404,552		15,709,990,536
Swaps		—		7,841,358
Capital shares redeemed		56,524		70,006,136
Income dividends		7,161		9,971,923
Interest expense		—		10,441,048
Investment advisory fees		8,748		11,561,110
Officer’s and Trustees’ fees		1,285		43,150
Other affiliates		3,017		1,701,921
Service and distribution fees		8,351		2,188,072
Swap premiums received		14,565		52,519,116
Unrealized depreciation on forward foreign currency exchange contracts		479,501		215,502,161
Unrealized depreciation on OTC swaps		25,056		46,092,041
Variation margin payable on financial futures contracts		—		9,622,905
Variation margin payable on centrally cleared swaps		11,988		1,148,034
Other accrued expenses payable		121,250		3,044,999
Total liabilities		7,526,025		34,926,749,013
Net Assets	$	56,512,813	$	30,767,239,203

See Notes to Financial Statements.

76 BLACKROCK FUNDS II JUNE 30, 2015

Statements of Assets and Liabilities (concluded)

June 30, 2015 (Unaudited)	BlackRock Emerging Markets Flexible Dynamic Bond Portfolio			BlackRock Strategic Income Opportunities Portfolio1
Net Assets Consist of
Paid-in capital	$	68,951,886		$	31,044,275,717
Distributions in excess of net investment income		(1,060,915	)		(115,304,358	)
Accumulated net realized gain (loss)		(11,138,941	)		507,185,216
Net unrealized appreciation (depreciation)		(239,217	)		(668,917,372	)
Net Assets	$	56,512,813		$	30,767,239,203
1      Consolidated Statement of Assets and Liabilities
2      Investments at cost — unaffiliated	$	50,827,248		$	41,648,547,967
3      Investments at cost — affiliated	$	3,906,773		$	7,233,242,265
4      Foreign currency at cost	$	1,305,397		$	157,110,534
5      Proceeds from investments sold short		—		$	9,029,600
6      Proceeds received from borrowed bonds		—		$	1,856,203,326
7      Premiums received	$	193,375		$	77,694,570
8      Proceeds from TBA sale commitments		—		$	15,970,124,959
Net Asset Value
BlackRock
Net assets	$	19,497,176			—
Shares outstanding8		2,270,441			—
Net asset value	$	8.59			—
Institutional
Net assets	$	18,045,875		$	23,465,939,305
Shares outstanding8		2,100,979			2,327,343,626
Net asset value	$	8.59		$	10.08
Investor A
Net assets	$	12,086,861		$	6,150,837,424
Shares outstanding8		1,408,893			610,044,035
Net asset value	$	8.58		$	10.08
Investor C
Net assets	$	6,882,901		$	1,150,462,474
Shares outstanding8		802,053			114,210,736
Net asset value	$	8.58		$	10.07

⁸ Unlimited number of shares authorized, $0.001 par value.

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 77

Statements of Operations

Six Months Ended June 30, 2015 (Unaudited)	BlackRock Emerging Markets Flexible Dynamic Bond Portfolio			BlackRock Strategic  Income Opportunities Portfolio1
Investment Income
Interest	$	1,668,751		$	387,737,512
Dividends — affiliated		2,138			8,917,707
Dividends — unaffiliated		—			6,281,298
Foreign taxes withheld		—			(150,579	)
Total income		1,670,889			402,785,938
Expenses
Investment advisory		176,846			65,625,001
Service and distribution — class specific		51,340			12,748,183
Professional		80,677			221,247
Accounting services		13,281			867,808
Administration		12,527			4,571,290
Administration — class specific		5,898			2,870,333
Transfer agent — class specific		31,024			9,439,021
Registration		33,060			760,368
Custodian		26,731			1,345,742
Officer and Trustees		8,963			167,772
Printing		12,565			133,208
Miscellaneous		7,324			224,506
Recoupment of past waived fees — class specific		3,355			1,239,724
Total expenses excluding interest expense		463,591			100,214,203
Interest expense2		—			28,777,322
Total expenses		463,591			128,991,525
Less administration fees waived — class specific		(4,172	)		(106,404	)
Less transfer agent fees waived — class specific		(619	)		(2,649	)
Less transfer agent fees reimbursed — class specific		(6,263	)		(252,430	)
Less fees waived by the Manager		(121,092	)		(1,589,771	)
Total expenses after fees waived and/or reimbursed		331,445			127,040,271
Net investment income		1,339,444			275,745,667
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated (net of $0 and $716,831 foreign capital gain tax, respectively)		(2,621,216	)3		(253,200,483	)
Investments — affiliated		—			(5,561,731	)
Options written		218,088			34,247,949
Financial futures contracts		(459,465	)		40,436,656
Swaps		(815,943	)		(33,667,364	)
Foreign currency transactions		1,696,645			668,226,142
Borrowed bonds		—			13,647,911
		(1,981,891	)		464,129,080
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		1,317,808			(341,398,017	)
Investments — affiliated		—			(1,502,920	)
Options written		(20,652	)		87,293,338
Financial futures contracts		(12,930	)		9,432,651
Swaps		(39,821	)		24,422,981
Foreign currency translations		(602,220	)		(412,268,019	)
Short sales		—			13,370
Borrowed bonds		—			75,453,914
		642,185			(558,552,702	)
Net realized and unrealized gain (loss)		(1,339,706	)		(94,423,622	)
Net Increase (Decrease) in Net Assets Resulting from Operations	$	(262	)	$	181,322,045

¹ Consolidated Statement of Operations.

² See Note 3 of the Notes to Financial Statements for details of short-term borrowings.

³ Includes a payment by an affiliate of $42,825 to compensate for a trade processing error.

See Notes to Financial Statements.

78 BLACKROCK FUNDS II JUNE 30, 2015

Statements of Changes in Net Assets

	BlackRock Emerging Markets Flexible Dynamic Bond Portfolio						BlackRock Strategic Income Opportunities Portfolio1
Increase (Decrease) in Net Assets:	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31, 2014			Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31, 2014
Operations
Net investment income	$	1,339,444		$	4,284,462		$	275,745,667		$	398,454,886
Net realized gain (loss)		(1,981,891	)		(11,385,555	)		464,129,080			427,857,407
Net change in unrealized appreciation (depreciation)		642,185			6,332,688			(558,552,702	)		(255,937,290	)
Net increase (decrease) in net assets resulting from operations		(262	)		(768,405	)		181,322,045			570,375,003
Distributions to Shareholders From2
Net investment income:
BlackRock		(322,012	)		—			—			—
Institutional		(311,024	)		—			(238,171,686	)		(616,943,928	)
Investor A		(174,455	)		—			(53,645,391	)		(143,131,172	)
Investor C		(77,998	)		—			(6,298,635	)		(29,441,812	)
Net realized gain:
Institutional		—			—			—			(55,846,427	)
Investor A		—			—			—			(13,508,508	)
Investor C		—			—			—			(3,472,471	)
Return of capital:
BlackRock		—			(752,017	)		—			—
Institutional		—			(1,841,260	)		—			—
Investor A		—			(700,300	)		—			—
Investor C		—			(312,946	)		—			—
Decrease in net assets resulting from distributions to shareholders		(885,489	)		(3,606,523	)		(298,115,712	)		(862,344,318	)
Capital Share Transactions
Net increase (decrease) in net assets derived from capital share transactions		(6,003,171	)		(37,205,542	)		5,680,680,978			14,216,374,634
Net Assets
Total increase (decrease) in net assets		(6,888,922	)		(41,580,470	)		5,563,887,311			13,924,405,319
Beginning of period		63,401,735			104,982,205			25,203,351,892			11,278,946,573
End of period	$	56,512,813		$	63,401,735		$	30,767,239,203		$	25,203,351,892
Distributions in excess of net investment income, end of period	$	(1,060,915	)	$	(1,514,870	)	$	(115,304,358	)	$	(92,934,313	)

¹  Consolidated Statements of Changes in Net Assets.

²  Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 79

Financial Highlights BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

	BlackRock
	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	8.73		$	9.14		$	10.54		$	10.32		$	10.32		$	9.83
Net investment income1		0.21			0.50			0.43			0.45			0.50			0.53
Net realized and unrealized gain (loss)		(0.21	)		(0.48	)		(1.38	)		1.57			0.03	2		0.58	2
Net increase (decrease) from investment operations		—			0.02			(0.95	)		2.02			0.53			1.11
Distributions from:3
Net investment income		(0.14	)		—			(0.10	)		(0.60	)		(0.49	)		(0.54	)
Net realized gain		—			—			(0.00	)4		(1.20	)		(0.04	)		(0.08	)
Return of capital		—			(0.43	)		(0.35	)		—			—			—
Total distributions		(0.14	)		(0.43	)		(0.45	)		(1.80	)		(0.53	)		(0.62	)
Net asset value, end of period	$	8.59		$	8.73		$	9.14		$	10.54		$	10.32		$	10.32
Total Return5
Based on net asset value		(0.02	)%6		0.20	%		(9.23	)%		20.25	%		5.23	%7		11.51	%7
Ratios to Average Net Assets
Total expenses8		1.28	%9		1.23	%		0.96	%10		1.07	%		1.11	%		1.28	%
Total expenses after fees waived, reimbursed and paid indirectly8		0.85	%9		0.85	%		0.85	%		0.85	%		0.85	%		0.85	%
Net investment income8		4.81	%9		5.57	%		4.22	%		4.12	%		4.82	%		5.11	%
Supplemental Data
Net assets, end of period (000)	$	19,497		$	19,803		$	11,165		$	33,552		$	28,415		$	27,321
Portfolio turnover rate		255	%		449	%		214	%		193	%		195	%		164	%

¹  Based on average shares outstanding.

²  Includes redemption fees, which are less than $0.005 per share.

³  Distributions for annual periods determined in accordance with federal income tax regulations.

⁴  Amount is greater than $(0.005) per share.

⁵  Where applicable, assumes the reinvestment of distributions.

⁶  Aggregate total return.

⁷  Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012		2011		2010
Investments in underlying funds		0.01	%		0.01	%		0.02	%		—		—		—

⁹  Annualized.

¹⁰  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

See Notes to Financial Statements.

80 BLACKROCK FUNDS II JUNE 30, 2015

Financial Highlights (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

	Institutional
	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	8.73		$	9.14		$	10.54		$	10.32		$	10.32		$	9.83
Net investment income1		0.20			0.51			0.45			0.43			0.49			0.52
Net realized and unrealized gain (loss)		(0.20	)		(0.50	)		(1.41	)		1.58			0.03	2		0.58	2
Net increase (decrease) from investment operations		—			0.01			(0.96	)		2.01			0.52			1.10
Distributions from:3
Net investment income		(0.14	)		—			(0.07	)		(0.59	)		(0.48	)		(0.53	)
Net realized gain		—			—			(0.00	)4		(1.20	)		(0.04	)		(0.08	)
Return of capital		—			(0.42	)		(0.37	)		—			—			—
Total distributions		(0.14	)		(0.42	)		(0.44	)		(1.79	)		(0.52	)		(0.61	)
Net asset value, end of period	$	8.59		$	8.73		$	9.14		$	10.54		$	10.32		$	10.32
Total Return5
Based on net asset value		(0.08	)%6		0.09	%		(9.30	)%		20.10	%		5.11	%7		11.45	%7
Ratios to Average Net Assets
Total expenses8		1.42	%9,10		1.30	%9		1.07	%9		1.18	%9		1.20	%9		1.35	%
Total expenses after fees waived, reimbursed and paid indirectly8		1.00	%10		0.98	%		0.92	%		0.98	%		0.96	%		0.91	%
Net investment income8		4.69	%10		5.79	%		4.55	%		3.92	%		4.72	%		5.04	%
Supplemental Data
Net assets, end of period (000)	$	18,046		$	24,177		$	64,636		$	15,203		$	6,497		$	4,563
Portfolio turnover rate		255	%		449	%		214	%		193	%		195	%		164	%

¹  Based on average shares outstanding.

²  Includes redemption fees, which are less than $0.005 per share.

³  Distributions for annual periods determined in accordance with federal income tax regulations.

⁴  Amount is greater than $(0.005) per share.

⁵  Where applicable, assumes the reinvestment of distributions.

⁶  Aggregate total return.

⁷  Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012		2011		2010
Investments in underlying funds		0.01	%		0.01	%		0.02	%		—		—		—

⁹  Includes recoupment of past waived fees and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the six months ended June 30, 2015 and the year ended December 31, 2014, the ratio would have been 1.39% and 1.29%, respectively. There was no financial impact to the expense ratios for the years ended December 31, 2013, December 31, 2012, and December 31, 2011.

¹⁰ Annualized.

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 81

Financial Highlights (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

	Investor A
	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	8.72		$	9.13		$	10.53		$	10.31		$	10.31		$	9.82
Net investment income1		0.19			0.48			0.40			0.40			0.46			0.49
Net realized and unrealized gain (loss)		(0.21	)		(0.49	)		(1.39	)		1.58			0.03	2		0.58	2
Net increase (decrease) from investment operations		(0.02	)		(0.01	)		(0.99	)		1.98			0.49			1.07
Distributions from:3
Net investment income		(0.12	)		—			(0.08	)		(0.56	)		(0.45	)		(0.50	)
Net realized gain		—			—			(0.00	)4		(1.20	)		(0.04	)		(0.08	)
Return of capital		—			(0.40	)		(0.33	)		—			—			—
Total distributions		(0.12	)		(0.40	)		(0.41	)		(1.76	)		(0.49	)		(0.58	)
Net asset value, end of period	$	8.58		$	8.72		$	9.13		$	10.53		$	10.31		$	10.31
Total Return5
Based on net asset value		(0.22	)%6		(0.14	)%		(9.59	)%		19.78	%		4.81	%7		11.13	%7
Ratios to Average Net Assets
Total expenses8		1.72	%9,10		1.65	%9		1.46	%9		1.48	%9		1.51	%9		1.67	%
Total expenses after fees waived, reimbursed and paid indirectly8		1.25	%10		1.25	%		1.25	%		1.25	%		1.25	%		1.20	%
Net investment income8		4.40	%10		5.42	%		4.00	%		3.66	%		4.38	%		4.72	%
Supplemental Data
Net assets, end of period (000)	$	12,087		$	12,063		$	19,582		$	26,999		$	14,803		$	8,864
Portfolio turnover rate		255	%		449	%		214	%		193	%		195	%		164	%

¹  Based on average shares outstanding.

²  Includes redemption fees, which are less than $0.005 per share.

³  Distributions for annual periods determined in accordance with federal income tax regulations.

⁴  Amount is greater than $(0.005) per share.

⁵  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁶  Aggregate total return.

⁷  Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012		2011		2010
Investments in underlying funds		0.01	%		0.01	%		0.02	%		—		—		—

⁹  Includes recoupment of past waived fees and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the years ended December 31, 2014, December 31, 2013 and December 31, 2011, the ratio would have been 1.59%, 1.43% and 1.49%, respectively. There was no financial impact to the expense ratios for the six months ended June 30, 2015 and the year ended December 31, 2012.

¹⁰ Annualized.

See Notes to Financial Statements.

82 BLACKROCK FUNDS II JUNE 30, 2015

Financial Highlights (concluded) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

	Investor C
	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	8.73		$	9.14		$	10.53		$	10.31		$	10.31		$	9.82
Net investment income1		0.16			0.41			0.33			0.33			0.39			0.42
Net realized and unrealized gain (loss)		(0.22	)		(0.50	)		(1.39	)		1.57			0.03	2		0.58	2
Net increase (decrease) from investment operations		(0.06	)		(0.09	)		(1.06	)		1.90			0.42			1.00
Distributions from:3
Net investment income		(0.09	)		—			(0.06	)		(0.48	)		(0.38	)		(0.43	)
Net realized gain		—			—			(0.00	)4		(1.20	)		(0.04	)		(0.08	)
Return of capital		—			(0.32	)		(0.27	)		—			—			—
Total distributions		(0.09	)		(0.32	)		(0.33	)		(1.68	)		(0.42	)		(0.51	)
Net asset value, end of period	$	8.58		$	8.73		$	9.14		$	10.53		$	10.31		$	10.31
Total Return5
Based on net asset value		(0.67	)%6		(0.93	)%		(10.19	)%		18.89	%		4.08	%7		10.33	%7
Ratios to Average Net Assets
Total expenses8		2.54	%9,10		2.45	%9		2.23	%9		2.27	%		2.25	%9		2.36	%
Total expenses after fees waived, reimbursed and paid indirectly8		2.00	%10		2.00	%		2.00	%		2.00	%		1.95	%		1.93	%
Net investment income8		3.67	%10		4.63	%		3.32	%		2.96	%		3.72	%		4.05	%
Supplemental Data
Net assets, end of period (000)	$	6,883		$	7,358		$	9,600		$	13,200		$	9,799		$	7,543
Portfolio turnover rate		255	%		449	%		214	%		193	%		195	%		164	%

¹  Based on average shares outstanding.

²  Includes redemption fees, which are less than $0.005 per share.

³  Distributions for annual periods determined in accordance with federal income tax regulations.

⁴  Amount is greater than $(0.005) per share.

⁵  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁶  Aggregate total return.

⁷  Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012		2011		2010
Investments in underlying funds		0.01	%		0.01	%		0.02	%		—		—		—

⁹  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratio.

¹⁰ Annualized.

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 83

Financial Highlights BlackRock Strategic Income Opportunities Portfolio

	Institutional
	Six Months Ended June 30, 2015 (Unaudited)1			Year Ended December 31,
				20141			20131			20121			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	10.11		$	10.17		$	10.10		$	9.51		$	9.96		$	9.36
Net investment income2		0.10			0.24			0.27			0.36			0.39			0.45
Net realized and unrealized gain (loss)		(0.02	)		0.15			0.07			0.57			(0.45	)		0.78
Net increase (decrease) from investment operations		0.08			0.39			0.34			0.93			(0.06	)		1.23
Distributions from:3
Net investment income		(0.11	)		(0.41	)		(0.25	)		(0.32	)		(0.37	)		(0.47	)
Net realized gain		—			(0.04	)		(0.02	)		—			(0.02	)		(0.16	)
Return of capital		—			—			—			(0.02	)		—			—
Total distributions		(0.11	)		(0.45	)		(0.27	)		(0.34	)		(0.39	)		(0.63	)
Redemption fees added to paid-in capital		—			—			—			—			0.00	4		0.00	4
Net asset value, end of period	$	10.08		$	10.11		$	10.17		$	10.10		$	9.51		$	9.96
Total Return5
Based on net asset value		0.78	%6		3.79	%		3.38	%		9.91	%		(0.73	)%7		13.39	%7
Ratios to Average Net Assets
Total expenses8		0.79	%9,10		0.78	%9		0.89	%9		0.89	%		1.09	%		0.54	%
Total expenses after fees waived, reimbursed and paid indirectly8		0.78	%10		0.77	%		0.87	%		0.84	%		0.92	%		0.35	%
Total expenses after fees waived, reimbursed and paid indirectly and excluding interest expense8		0.58	%10		0.60	%		0.65	%		0.65	%		0.52	%		0.34	%
Net investment income8		2.03	%10		2.34	%		2.62	%		3.62	%		3.99	%		4.47	%
Supplemental Data
Net assets, end of period (000)	$	23,465,939		$	20,070,188		$	7,294,601		$	2,180,663		$	1,418,742		$	618,274
Portfolio turnover rate11		825	%		1,396	%		1,413	%		807	%		639	%		881	%

¹ Consolidated Financial Highlights.

²  Based on average shares outstanding.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Less than $0.01 per share.

⁵  Where applicable, assumes the reinvestment of distributions.

⁶ Aggregate total return.

⁷ Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Investments in underlying funds		0.04	%		0.02	%		0.03	%		0.04	%		0.07	%		0.31	%

⁹ Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended December 31, 2014 and the year ended December 31, 2013, the ratio would have been 0.77% and 0.88%, respectively. There was no financial impact to the expense ratios for the six months ended June 30, 2015.

¹⁰ Annualized.

¹¹  Includes mortgage dollar roll transactions. Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Portfolio turnover rate (excluding mortgage dollar roll transactions)		580	%		1,067	%		894	%		461	%		477	%		750	%
Portfolio turnover rate including TBA Sale Commitments, to conform to the current presentation		—			—			—			1,778	%		1,078	%		2,093	%
Portfolio turnover rate including TBA Sale Commitments and excluding mortgage dollar rolls.		—			—			—			1,105	%		846	%		1,807	%

See Notes to Financial Statements.

84 BLACKROCK FUNDS II JUNE 30, 2015

Financial Highlights (continued) BlackRock Strategic Income Opportunities Portfolio

	Investor A
	Six Months Ended June 30, 2015 (Unaudited)1			Year Ended December 31,
				20141			20131			20121			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	10.11		$	10.17		$	10.10		$	9.51		$	9.96		$	9.36
Net investment income2		0.09			0.22			0.24			0.33			0.37			0.43
Net realized and unrealized gain (loss)		(0.03	)		0.14			0.07			0.58			(0.46	)		0.77
Net increase (decrease) from investment operations		0.06			0.36			0.31			0.91			(0.09	)		1.20
Distributions from:3
Net investment income		(0.09	)		(0.38	)		(0.22	)		(0.30	)		(0.34	)		(0.44	)
Net realized gain		—			(0.04	)		(0.02	)		—			(0.02	)		(0.16	)
Return of capital		—			—			—			(0.02	)		—			—
Total distributions		(0.09	)		(0.42	)		(0.24	)		(0.32	)		(0.36	)		(0.60	)
Redemption fees added to paid-in capital		—			—			—			—			0.00	4		0.00	4
Net asset value, end of period	$	10.08		$	10.11		$	10.17		$	10.10		$	9.51		$	9.96
Total Return5
Based on net asset value		0.63	%6		3.48	%		3.12	%		9.64	%		(0.98	)%7		13.10	%7
Ratios to Average Net Assets
Total expenses8		1.12	%9,10		1.09	%9		1.15	%9		1.15	%		1.35	%		0.82	%
Total expenses after fees waived, reimbursed and paid indirectly8		1.10	%10		1.06	%		1.12	%		1.09	%		1.16	%		0.61	%
Total expenses after fees waived, reimbursed and paid indirectly and excluding interest expense8		0.90	%10		0.90	%		0.90	%		0.90	%		0.77	%		0.60	%
Net investment income8		1.68	%10		2.10	%		2.39	%		3.38	%		3.74	%		4.19	%
Supplemental Data
Net assets, end of period (000)	$	6,150,837		$	4,047,716		$	3,186,806		$	1,077,279		$	903,984		$	530,320
Portfolio turnover rate11		825	%		1,396	%		1,413	%		807	%		639	%		881	%

¹ Consolidated Financial Highlights.

² Based on average shares outstanding.

³ Distributions for annual periods determined in accordance with federal income tax regulations.

⁴ Less than $0.01 per share.

⁵ Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁶ Aggregate total return.

⁷ Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸ Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Investments in underlying funds		0.04	%		0.02	%		0.03	%		0.04	%		0.07	%		0.31	%

⁹ Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the six months ended June 30, 2015 and the year ended December 31, 2014 the ratios would have been 1.09% and 1.08%, respectively. There was no financial impact to the expense ratios for the year ended December 31, 2013.

¹⁰ Annualized.

¹¹  Includes mortgage dollar roll transactions. Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Portfolio turnover rate (excluding mortgage dollar roll transactions)		580	%		1,067	%		894	%		461	%		477	%		750	%
Portfolio turnover rate including TBA Sale Commitments, to conform to the current presentation		—			—			—			1,778	%		1,078	%		2,093	%
Portfolio turnover rate including TBA Sale Commitments and excluding mortgage dollar rolls.		—			—			—			1,105	%		846	%		1,807	%

See Notes to Financial Statements.

BLACKROCK FUNDS II JUNE 30, 2015 85

Financial Highlights (concluded) BlackRock Strategic Income Opportunities Portfolio

	Investor C
	Six Months Ended June 30, 2015 (Unaudited)1			Year Ended December 31,
				20141			20131			20121			2011			2010
Per Share Operating Performance
Net asset value, beginning of period	$	10.10		$	10.16		$	10.09		$	9.50		$	9.95		$	9.36
Net investment income2		0.05			0.14			0.17			0.26			0.29			0.36
Net realized and unrealized gain (loss)		(0.02	)		0.14			0.06			0.57			(0.45	)		0.76
Net increase (decrease) from investment operations		0.03			0.28			0.23			0.83			(0.16	)		1.12
Distributions from:3
Net investment income		(0.06	)		(0.30	)		(0.15	)		(0.22	)		(0.27	)		(0.37	)
Net realized gain		—			(0.04	)		(0.01	)		—			(0.02	)		(0.16	)
Return of capital		—			—			—			(0.02	)		—			—
Total distributions		(0.06	)		(0.34	)		(0.16	)		(0.24	)		(0.29	)		(0.53	)
Redemption fees added to paid-in capital		—			—			—			—			0.00	4		0.00	4
Net asset value, end of period	$	10.07		$	10.10		$	10.16		$	10.09		$	9.50		$	9.95
Total Return5
Based on net asset value		0.26	%6		2.70	%		2.34	%		8.84	%		(1.72	)%7		12.15	%7
Ratios to Average Net Assets
Total expenses8		1.86	%9,10		1.83	%9		1.93	%9		1.95	%		2.11	%		1.54	%
Total expenses after fees waived, reimbursed and paid indirectly8		1.85	%10		1.81	%		1.87	%		1.84	%		1.91	%		1.34	%
Total expenses after fees waived, reimbursed and paid indirectly and excluding interest expense8		1.65	%10		1.65	%		1.65	%		1.65	%		1.52	%		1.33	%
Net investment income8		0.95	%10		1.33	%		1.73	%		2.66	%		2.99	%		3.51	%
Supplemental Data
Net assets, end of period (000)	$	1,150,462		$	1,085,448		$	797,540		$	478,775		$	464,507		$	291,068
Portfolio turnover rate11		825	%		1,396	%		1,413	%		807	%		639	%		881	%

¹  Consolidated Financial Highlights.

²  Based on average shares outstanding.

³  Distributions for annual periods determined in accordance with federal income tax regulations.

⁴  Less than $0.01 per share.

⁵  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁶  Aggregate total return.

⁷  Includes redemption fees received by the Fund, which had no impact on the Fund’s total return.

⁸  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Investments in underlying funds		0.04	%		0.02	%		0.03	%		0.04	%		0.07	%		0.31	%

⁹  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the six months ended June 30, 2015, the ratio would have been 1.83%. There was no financial impact to the expense ratios for the years ended December 31, 2014 and December 31, 2013.

¹⁰ Annualized.

¹¹  Includes mortgage dollar roll transactions. Additional information regarding portfolio turnover rate is as follows:

	Six Months Ended June 30, 2015 (Unaudited)			Year Ended December 31,
				2014			2013			2012			2011			2010
Portfolio turnover rate (excluding mortgage dollar roll transactions)		580	%		1,067	%		894	%		461	%		477	%		750	%
Portfolio turnover rate including TBA Sale Commitments, to conform to the current presentation		—			—			—			1,778	%		1,078	%		2,093	%
Portfolio turnover rate including TBA Sale Commitments and excluding mortgage dollar rolls		—			—			—			1,105	%		846	%		1,807	%

See Notes to Financial Statements.

86 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (Unaudited)

1. Organization:

BlackRock Funds II (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. The following are referred to herein collectively as the “Funds” or individually, a “Fund”:

Fund Name	Herein Referred To As	Diversification Classification
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio	Emerging Markets Flexible Dynamic Bond	Non-diversified
BlackRock Strategic Income Opportunities Portfolio	Strategic Income Opportunities	Non-diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional Shares are sold only to certain eligible investors. 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.

Share Class	Initial Sales Charge	CDSC	Conversion Privilege
BlackRock and Institutional Shares	No	No	None
Investor A Shares	Yes	No1	None
Investor C Shares	No	Yes	None

    ¹ Investor A Shares may be subject to a CDSC for certain redemptions where no initial sales charge was paid at the time of purchase.

Basis of Consolidation: The accompanying consolidated financial statements of Strategic Income Opportunities include the account of BlackRock Cayman Strategic Income Opportunities Portfolio I, Ltd. (the “Subsidiary”), which is a wholly owned subsidiary of Strategic Income Opportunities and primarily invests in commodity-related instruments. The Subsidiary enables Strategic Income Opportunities to hold these commodity-related instruments and satisfy regulated investment company tax requirements. Strategic Income Opportunities may invest up to 25% of its total assets in the Subsidiary. The net assets of the Subsidiary as of June 30, 2015 were $277,766,858, which is 0.9% of Strategic Income Opportunities’ 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 Strategic Income Opportunities, except that the Subsidiary may invest without limitation in commodity-related instruments.

2. Significant Accounting Policies:

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

Valuation: The Funds’ investments are valued at fair value as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time). U.S. GAAP defines fair value as the price the Funds would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Funds determine the fair values of their financial instruments at market value using independent dealers or pricing services under policies approved by the Board. The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to provide oversight of the pricing function for the Funds for all financial instruments.

Bond investments are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche. Financial futures contracts traded on exchanges are valued at their last sale price. To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services. Swap agreements are valued utilizing quotes received daily by the Funds’ pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments. Certain centrally cleared swaps are valued at the price determined by the relevant exchange or clearinghouse. Investments in open-end registered investment companies are valued at NAV each business day.

BLACKROCK FUNDS II JUNE 30, 2015 87

Notes to Financial Statements (continued)

Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

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

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 business on the NYSE. Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

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.

In the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Value Investments”). When determining the price for Fair Value Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement, which include the market approach, income approach and/or in the case of recent investments, the cost approach, as appropriate. The market approach generally consists of using comparable market transactions. The income approach generally is used to discount future cash flows to present value and is adjusted for liquidity as appropriate. These factors include but are not limited to: (i) attributes specific to the investment or asset; (ii) the principal market for the investment or asset; (iii) the customary participants in the principal market for the investment or asset; (iv) data assumptions by market participants for the investment or asset, if reasonably available; (v) quoted prices for similar investments or assets in active markets; and (vi) other factors, such as future cash flows, interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates. Due to the inherent uncertainty of valuations of such investments, the fair values may differ from the values that would have been used had an active market existed. The Global Valuation Committee, or its delegate, employs various methods for calibrating valuation approaches for investments where an active market does not exist, including regular due diligence of the Trust’s pricing vendors, regular reviews of key inputs and assumptions, transactional back-testing or disposition analysis to compare unrealized gains and losses to realized gains and losses, reviews of missing or stale prices and large movements in market values and reviews of any market related activity. The pricing of all Fair Value Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Funds’ net assets. If events (e.g., a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such instruments, those instruments may be Fair Value Investments and be valued at their fair value, as determined in good faith by the Global Valuation Committee, or its delegate, using a pricing service and/or policies approved by the Board. Each business day, the Funds use a pricing service to assist with the valuation of certain foreign exchange-traded and OTC options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

Foreign Currency: Each Fund’s books and records are maintained in U.S. dollars. Purchases and sales of investment securities are recorded at the rates of exchange prevailing on the respective date of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, each Funds’ investments denominated in that currency will lose value because that currency is worth fewer U.S. dollars; the opposite effect occurs if the U.S. dollar falls in relative value.

Each Fund does not isolate the portion of the results of operations arising as a result of changes in the foreign exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in foreign currency exchange rates on investments are not segregated in the Statements of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. Each Fund reports realized currency gains (losses) on foreign currency

88 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for federal income tax purposes.

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

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

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend date. The portion of distributions, if any, that exceeds a Fund’s current and accumulated earnings and profits, which are measured on a tax basis, will constitute a non-taxable return of capital. The character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. Accordingly, the net investment income (loss) and realized gains (losses) reported in the Funds’ financial statements presented under U.S. GAAP for such investments held by the Subsidiary may differ significantly from distributions. As such, any net gain will pass through to the Fund as ordinary income for federal income 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.

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

The Funds have an arrangement with their custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Statements of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges.

3. Securities and Other Investments:

Asset-Backed and Mortgage-Backed Securities: The Funds may invest in asset-backed securities. Asset-backed securities are generally issued as pass-through certificates, which represent undivided fractional ownership interests in an underlying pool of assets, or as debt instruments, which are also known as collateralized obligations, and are generally 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 subject to such a prepayment feature will have the effect of shortening the maturity of the security. In addition, the Fund may subsequently have to reinvest the proceeds at lower interest rates. If the 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.

The Funds may purchase certain mortgage pass-through securities. 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.

BLACKROCK FUNDS II JUNE 30, 2015 89

Notes to Financial Statements (continued)

Non-agency mortgage-backed securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Collateralized Debt Obligations: The Funds may invest in collateralized debt obligations (“CDOs”), which include collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”). CBOs and CLOs are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

Inflation-Indexed Bonds: The Funds may invest in inflation-indexed bonds. 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 will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statements of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Multiple Class Pass-Through Securities: The Funds may invest in multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities. These multiple class securities may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by, and multiple class pass-through securities represent direct ownership interests in, a pool of residential or commercial mortgage loans or mortgage pass-through securities (the “Mortgage Assets”), the payments on which are used to make payments on the CMOs or multiple pass-through securities. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, the Funds may not fully recoup their initial investments in IOs.

Stripped Mortgage-Backed Securities: The Funds may invest in stripped mortgage-backed securities issued by the U.S. Government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. The Funds also may invest in stripped mortgage-backed securities that are privately issued.

Zero-Coupon Bonds: The Funds may invest in zero-coupon bonds, which are normally issued at a significant discount from face value and do not provide for periodic interest payments. Zero-coupon bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Capital Trusts and Trust Preferred Securities: The Funds may invest in capital trusts and/or trust preferred securities. These securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured as either fixed or adjustable coupon securities that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation will pay interest to the trust, which will then be distributed to holders of the trust preferred securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. Payments on these securities are treated as interest rather than dividends for federal income tax purposes. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

90 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

Preferred Stock: The Funds may invest in preferred stock. Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well) but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Floating Rate Loan Interests: The Funds may invest in floating rate loan interests. The floating rate loan interests held by the Funds are typically issued to companies (the “borrower”) by banks, other financial institutions, and privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged. The Funds may invest in obligations of borrowers who are in bankruptcy proceedings. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. The Funds consider these investments to be investments in debt securities for purposes of their investment policies.

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

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

Forward Commitments and When-Issued Delayed Delivery Securities: The Funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. The Funds may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, the Funds may be required to pay more at settlement than the security is worth. In addition, the Funds are not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, the Funds assume the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, the Funds’ maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions, which is shown in the Schedules of Investments.

TBA Commitments: The Funds may enter into 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, the Funds 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 the Funds mitigate their counterparty risk, TBA commitments may be entered into by the Funds under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other

BLACKROCK FUNDS II JUNE 30, 2015 91

Notes to Financial Statements (continued)

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 on the Statements of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a Fund, if any, is noted in the Schedules of Investments. Typically, the Funds are permitted to sell, repledge or use the collateral they receive; however, the counterparty is not permitted to do so. To the extent amounts due to the Funds are not fully collateralized, contractually or otherwise, the Funds bear the risk of loss from counterparty non-performance.

Mortgage Dollar Roll Transactions: The Funds may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, the Funds will not be entitled to receive interest and principal payments on the securities sold. The Funds account for mortgage dollar roll transactions as purchases and sales and realize gains and losses on these transactions. These transactions may increase the Funds’ portfolio turnover rate. Mortgage dollar rolls involve the risk that the market value of the securities that the Funds are required to purchase may decline below the agreed upon repurchase price of those securities.

Borrowed Bond Agreements: The Funds may enter into borrowed bond agreements. In a borrowed bond agreement, the Funds borrow a bond from a counterparty in exchange for cash collateral. The borrowed bond agreement contains a commitment that the security and the cash will be returned to the counterparty and the Funds at a mutually agreed upon date. Certain agreements have no stated maturity and can be terminated by either party at any time. Borrowed bond agreements are entered into primarily in connection with short sales of bonds. Earnings on cash collateral and compensation to the lender of the bond are based on agreed upon rates between the Funds and the counterparty. The value of the underlying cash collateral approximates the market value and accrued interest of the borrowed bond. To the extent that a borrowed bond transaction exceeds one business day, the value of the cash collateral in the possession of the counterparty is monitored on a daily basis to ensure the adequacy of the collateral. As the market value of the borrowed bond changes, the cash collateral is periodically increased or decreased with a frequency and in amounts prescribed in the borrowed bond agreement. Full realization of the collateral by the Funds may be limited if the value of an investment purchased with the cash collateral by the lender decreases. The Funds may also experience delays in gaining access to the collateral.

Reverse Repurchase Agreements: The Funds may enter into reverse repurchase agreements with qualified third party broker-dealers. In a reverse repurchase agreement, the Funds sell securities to a bank or broker-dealer and agree to repurchase the same securities at a mutually agreed upon date and price. The Funds receive cash from the sale to use for other investment purposes. During the term of the reverse repurchase agreement, the Funds continue 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. The Funds 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 the Funds suffer a loss on their investment transaction proceeds from a reverse repurchase agreements, the Funds would still be required to pay the full repurchase price. Further, the Funds remain subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, the Funds would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

For financial reporting purposes, cash received in exchange for securities delivered plus accrued interest due to the counterparty is recorded as a liability in the Statements of Assets and Liabilities at face value including accrued interest. Due to the short term nature of the reverse repurchase agreements, face value approximates fair value. Interest payments made by the Funds to the counterparties are recorded as a component of interest expense in the Statements of Operations. In periods of increased demand for the security, a Fund may receive a fee for use of the security by the counterparty, which may result in interest income to the Funds.

For the six months ended June 30, 2015, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for Strategic Income Opportunities were $1,232,552,757 and (0.39)%, respectively.

Borrowed bond agreements and reverse repurchase transactions are entered into by the Funds under Master Repurchase Agreements (each, an “MRA”), which permit the Funds, 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 the Funds. With borrowed bond agreements and reverse repurchase transactions, typically the Funds and the counterparties 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, the Funds receive or post securities as collateral with a market value in excess of the repurchase price to be paid or received by the Funds upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, the Funds are considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.

92 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

As of June 30, 2015, the following table is a summary of Strategic Income Opportunities’ open borrowed bond agreements and reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis:

Counterparty	Borrowed Bond Agreements1		Reverse Repurchase Agreements			Borrowed Bonds at Value including Accrued Interest2			Net Amount before Collateral			Non-cash Collateral Received			Cash Collateral Received			Non-cash Collateral Pledged		Cash Collateral Pledged		Net Collateral (Received)/ Pledged			Net Expo- sure Due (to)/ from Counterparty3
Barclays Bank PLC	$	116,247,469		—		$	(116,773,057	)	$	(525,588	)		—			—			—		—		—		$	(525,588	)4
Barclays Capital, Inc.		582,377,756	$	(702,018,271	)		(583,877,047	)		(703,517,562	)		—		$	(1,003,000	)	$	704,074,625		—	$	703,071,625			(445,937	)
Citigroup Global Markets Ltd.		63,202,914		—			(64,764,741	)		(1,561,827	)		—			—			792,840	$	690,058		1,482,898			(78,929	)
Citigroup Global Markets, Inc.		123,961,273		—			(116,925,115	)		7,036,158			—			(6,180,000	)		—		—		(6,180,000	)		856,158
Deutsche Bank Securities, Inc.		207,526,174		(36,616,261	)		(207,687,015	)		(36,777,102	)		—			—			36,777,102		—		36,777,102			—
J.P. Morgan Securities LLC		282,135,900		(72,751,415	)		(282,877,545	)		(73,493,060	)		—			(223,000	)		73,716,060		—		73,493,060			—
JPMorgan Chase Bank N.A.		116,389,289		—			(114,754,187	)		1,635,102			—			(279,265	)		—		—		(279,265	)		1,355,837	4
Merrill Lynch, Pierce, Fenner & Smith, Inc.		20,700,599		(45,930,565	)		(20,001,295	)		(45,231,261	)	$	(827,188	)		—			45,968,195		—		45,141,007			(90,254	)
Morgan Stanley & Co. International PLC		264,668,331		—			(263,916,745	)		751,586			—			—			—		—		—			751,586
RBC Capital Markets, LLC		28,750,843		—			(28,152,430	)		598,413			(598,413	)		—			—		—		(598,413	)		—
Total	$	1,805,960,548	$	(857,316,512	)	$	(1,799,729,177	)	$	(851,085,141	)	$	(1,425,601	)	$	(7,685,265	)	$	861,328,822	$	690,058	$	852,908,014		$	1,822,873

¹  Included in Investments at value-unaffiliated in the Statements of Assets and Liabilities.

²  Includes accrued interest on borrowed bonds in the amount of $10,426,109 which is included in interest expense payable in the Statements of Assets and Liabilities.

³  Net exposure represents the net receivable (payable) that would be due from/to the counterparty in the event of default.

⁴  Net receivable/payable is subject to set-off provision against net receivable/payable under the ISDA Master Agreement.

When the Funds enter into an MRA and an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) and/or MSLA with the same counterparty, the agreements may contain a set-off provision allowing a fund to offset a net amount payable with a net amount receivable upon default of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. For example, regardless of the contractual rights included in an MRA, such laws may prohibit the Fund from setting off amounts owed to a defaulting counterparty under an MRA against amounts owed to the Fund by affiliates of the defaulting counterparty. However, the insolvency regimes of many jurisdictions generally permit set-off of simultaneous payables and receivables with the same legal entity under certain types of financial contracts. These rules would apply upon a default of the legal entity, regardless of the existence of a contractual set-off right in those contracts.

In the event the counterparty of securities under an MRA files for bankruptcy or becomes insolvent, the 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 the Fund’s obligation to repurchase the securities.

Short Sales: The Funds may enter into short sale transactions in which the Funds sell a security they do not hold in anticipation of a decline in the market price of that security. When the Funds make a short sale, they will borrow the security sold short (borrowed bond) and deliver cash to the counterparty to which they sold the security short. An amount equal to the proceeds received by the Funds is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the market value of the short sale. The Funds are required to repay the counterparty interest on the security sold short, which is shown as interest expense in the Statements of Operations. The Funds are exposed to market risk based on the amount, if any, that the market value of the security increases beyond the market value at which the position was sold. Thus, a short sale of a security involves the risk that instead of declining, the price of the security sold short will rise. The short sale of securities involves the possibility of a theoretically unlimited loss since there is a theoretically unlimited potential for the market price of the security sold short to increase. A gain, limited to the price at which the Funds sold the security short, or a loss, unlimited as to the dollar amount, will be recognized upon the termination of a short sale if the market price is either less than or greater than the proceeds originally received. There is no assurance the Funds will be able to close out a short position at a particular time or at an acceptable price.

4. Derivative Financial Instruments:

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage economically their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk or other risk (e.g., inflation risk). These contracts may be transacted on an exchange or OTC.

BLACKROCK FUNDS II JUNE 30, 2015 93

Notes to Financial Statements (continued)

Financial Futures Contracts: The Funds invest in long and/or short positions in financial futures contracts and options on financial futures contracts to gain exposure to, or economically hedge against, changes in interest rates (interest rate risk), changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk). Financial futures contracts are agreements between the Funds and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and at a specified date. Depending on the terms of the particular contract, financial futures contracts are settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash settlement amount on the settlement date.

Upon entering into a financial futures contract, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited, if any, is recorded on the Statements of Assets and Liabilities as cash pledged for financial futures contracts. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin. Variation margin is recorded by the Funds as unrealized appreciation or depreciation and, if applicable, as a receivable or payable for variation margin in the Statements of Assets and Liabilities.

When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of financial futures contracts involves the risk of an imperfect correlation in the movements in the price of financial futures contracts, interest or foreign currency exchange rates and the underlying assets.

Forward Foreign Currency Exchange Contracts: The Funds enter into forward foreign currency exchange contracts as an economic hedge against either specific transactions or portfolio instruments or to obtain exposure to, or hedge exposure away from, 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 future date. Forward foreign currency exchange contracts, when used by the Funds, help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The contract is marked-to-market daily and the change in market value is recorded by the Funds as an unrealized gain or loss. When the contract is closed, the Funds record a realized gain or loss equal to the difference between the value at the time it was opened and the value at the time it was closed. 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.

Options: The Funds purchase and write call and put options to increase or decrease their exposure to underlying instruments (including credit risk, equity risk, foreign currency exchange rate risk and/or interest rate risk) and/or, in the case of options written, to generate gains from options premiums. A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. When the Funds purchase (write) an option, an amount equal to the premium paid (received) by the Funds is reflected as an asset (liability). The amount of the asset (liability) is subsequently marked-to-market to reflect the current market value of the option purchased (written). When an instrument is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the instrument acquired or deducted from (or added to) the proceeds of the instrument sold. When an option expires (or the Funds enter into a closing transaction), the Funds realize a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premiums received or paid). When the Funds write a call option, such option is “covered,” meaning that the Funds hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation.

Options on swaps (“swaptions”) are similar to options on securities except that instead of selling or purchasing the right to buy or sell a security, the writer or purchaser of the swaptions is granting or buying 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.

The Funds also purchase or sell listed or OTC foreign currency options, foreign currency futures and related options on foreign currency futures as a short or long hedge against possible variations in foreign exchange rates or to gain exposure to foreign currencies (foreign currency exchange rate risk). When foreign currency is purchased or sold through an exercise of a foreign currency option, the related premium paid (or received) is added to (or deducted from) the basis of the foreign currency acquired or deducted from (or added to) the proceeds of the foreign currency sold (receipts from the foreign currency purchased). Such transactions may be effected with respect to hedges on non-U.S. dollar denominated instruments owned by the Funds but not yet delivered, or committed or anticipated to be purchased by the Funds.

The Funds may also purchase and write a variety of options with non-standard payout structures or other features (“barrier options”). Barrier options are generally traded OTC. The Funds may invest in various types of barrier options including down-and-out options. Down-and-out options are similar to

94 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

standard options, except that the option expires worthless to the purchaser of the option if the price of the underlying instrument reaches a specific barrier price level prior to the option’s expiration date.

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that the Funds may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

Strategic Income Opportunities invests in structured options to increase or decrease its exposure to an underlying index or group of securities (equity risk). These structured options are European-style options and may consist of single or multiple OTC options which are priced as a single security. European-style options may only be exercised at the expiration date, but may be transferred/sold prior to the expiration date. The value of a structured option may either increase or decrease with the underlying index or group of securities, depending on the combination of options used. Structured options are issued in units whereby each unit represents a structure based on the specific index with an initial reference strike price. One type of structure involves the combination of selling a put while buying a call on a specific index. This option would rise in value as the underlying index increases and fall in value as the underlying index decreases. Alternatively, another structure involves the sale of a call and the purchase of a put. This option structure would rise in value as the underlying index decreases and fall in value as the underlying index increases. Upon the exercise of the structured option, the Fund will receive a payment from, or be required to remit a payment to the counterparty, depending on the value of the underlying index at exercise.

For the six months ended June 30, 2015, transactions in options written including swaptions and currency options were as follows:

	Emerging Markets Flexible Dynamic Bond
	Calls
	Notional1 (000)			Premiums Received
Outstanding options, beginning of period		—			—
Options written		33,000		$	304,255
Options expired		(21,100	)		(110,880	)
Outstanding options, end of period		11,900		$	193,375

¹ Amount shown is in the currency in which the transaction was denominated.

	Strategic Income Opportunities
	Calls								Puts
	Contracts			Notional1 (000)			Premiums Received		Contracts			Notional1 (000)			Premiums Received
Outstanding options, beginning of period		16,292,001			7,913,454		$	58,281,417		2,785			2,637,030		$	20,625,166
Options written		17,800,576			101,873,075			149,526,971		236,416			7,825,693			144,771,054
Options exercised		—			(2,211,774	)		(42,096,396)		—			(624,521	)		(18,844,418	)
Options expired		(413,863	)		(5,802,194	)		(29,446,485)		(124,721	)		(1,816,088	)		(17,366,879	)
Options closed		(33,659,351	)		(8,343,683	)		(116,875,093)		(85,343	)		(4,490,535	)		(70,880,767	)
Outstanding options, end of period		19,363			93,428,878		$	19,390,414		29,137			3,531,579		$	58,304,156

¹ Amount shown is in the currency in which the transaction was denominated.

As of June 30, 2015, the value of portfolio securities subject to covered call options written in Strategic Income Opportunities was $18,543,253.

Swaps: The Funds enter into swap agreements in which the Fund and a counterparty agree either to make periodic net payments on a specified notional amount or 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”). Swaps are marked-to-market daily and changes in value are recorded as unrealized appreciation (depreciation).

For OTC swaps, any upfront premiums paid are recorded as assets and any upfront fees received are recorded as liabilities and are shown as swap premiums paid and swap premiums received, respectively, in the Statements of Assets and Liabilities and amortized over the term of the OTC swap. Payments received or made by the Funds for OTC swaps are recorded in the Statements of Operations as realized gains or losses, respectively. When an OTC swap is terminated, the Funds will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the Funds’ basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

BLACKROCK FUNDS II JUNE 30, 2015 95

Notes to Financial Statements (continued)

In a centrally cleared swap, immediately following execution of the swap agreement, the swap agreement is novated to a central counterparty (the “CCP”) and the Funds’ counterparty on the swap agreement becomes the CCP. The Funds are required to interface with the CCP through a broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated on the Schedules of Investments and cash deposited is recorded on the Statements of Assets and Liabilities as cash pledged for centrally cleared swaps. The daily change in valuation of centrally cleared swaps is recorded as a receivable or payable for variation margin in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gain (loss) in the Statements of Operations.

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

• Credit default swaps — The Funds enter into credit default swaps to manage their exposure to the market or certain sectors of the market, to reduce their risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which they are not otherwise exposed (credit risk). The Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps on single-name issuers are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a guarantee from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation accelerators, repudiation, moratorium or restructuring). Credit default swaps on traded indexes are agreements in which the buyer pays fixed periodic payments to the seller in consideration for a guarantee from the seller to make a specific payment should a write-down, principal or interest shortfall or default of all or individual underlying securities included in the index occur. As a buyer, if an underlying credit event occurs, the Funds will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

• Total return swaps — The Funds enter into total return swaps to obtain exposure to a security or market without owning such security or investing directly in that market or to transfer the risk/return of one market (e.g., fixed income) to another market (e.g., equity) (equity risk and/or interest rate risk). Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (coupons plus capital gains/losses) of an underlying instrument in exchange for fixed or floating rate interest payments. To the extent the total return of the instrument or index underlying the transaction exceeds or falls short of the offsetting interest rate obligation, the Funds will receive a payment from or make a payment to the counterparty.

• Interest rate swaps — The Funds enter into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk by economically hedging the value of the fixed rate bonds, which may decrease when interest rates rise (interest rate risk). Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, 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 swaps, the notional principal amount may decline (or amortize) over time.

• Forward interest rate swaps — The Funds may enter into forward interest rate swaps. In a forward swap, each Fund and the counterparty agree to make either periodic net payments beginning on a specified future effective date or a net payment at termination, unless terminated earlier.

96 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

The following is a summary of the Funds’ derivative financial instruments categorized by risk exposure:

Fair Values of Derivative Financial Instruments as of June 30, 2015
		Emerging Markets Flexible Dynamic Bond				Strategic Income Opportunities
		Value
	Statements of Assets and Liabilities Location	Derivative Assets		Derivative Liabilities		Derivative Assets		Derivative Liabilities
Credit contracts	Unrealized appreciation (depreciation) on OTC swaps; Swap premiums paid/received; Investments at value — unaffiliated2; Options Written at value	$	3,301,516	$	39,621	$	64,716,609	$	79,312,571
Equity contracts	Net unrealized appreciation (depreciation)1; Unrealized appreciation on OTC swaps; Investments at value — unaffiliated2; Options Written at value		—		—		46,288,925		15,261,287
Foreign currency exchange contracts	Net unrealized appreciation (depreciation)1; Unrealized appreciation (depreciation) on forward foreign currency exchange contracts; Investments at value — unaffiliated2; Options Written at value		682,052		693,528		155,874,927		275,970,225
Interest rate contracts	Net unrealized appreciation (depreciation)1; Unrealized appreciation (depreciation) on OTC swaps; Swap premiums paid/received; Investments at value — unaffiliated2; Options Written at value		—		137,583		74,530,660		81,521,329
Other contracts	Unrealized appreciation/depreciation on swaps; Swap premiums paid (received)		—		—		—		—
Total		$	3,983,568	$	870,732	$	341,411,121	$	452,065,412

¹  Includes cumulative appreciation (depreciation) on financial futures contracts and centrally cleared swaps, if any, as reported in the Schedules of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities.

²  Includes options purchased at value as reported in the Schedules of Investments.

The Effect of Derivative Financial Instruments in the Statements of Operations Six Months Ended June 30, 2015
	Net Realized Gain (Loss) From						Net Change in Unrealized Appreciation (Depreciation) on
	Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities			Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities
Interest rate contracts:
Financial futures contracts	$	(459,465	)	$	(35,999,408	)	$	(12,930	)	$	21,895,769
Swaps		(549,154	)		(28,803,925	)		(104,849	)		27,445,057
Options1		213,198			(27,052,948	)		—			15,098,035
Foreign currency exchange contracts:
Foreign currency transactions/translations		1,924,265			693,912,081			(533,780	)		(394,325,702	)
Financial futures contracts		—			26,805,379			—			(5,139,980	)
Options1		(24,752	)		9,617,270			(184,168	)		(5,517,857	)
Credit contracts:
Swaps		(266,789	)		3,495,472			65,028			1,913,573
Options1		—			331,958			—			893,680
Equity contracts:
Financial futures contracts		—			49,630,685			—			(7,323,138	)
Swaps		—			(8,358,911	)		—			(4,935,649	)
Options1		—			(59,724,273	)		—			2,026,430
Total	$	837,303		$	623,853,380		$	(770,699	)	$	(347,969,782	)

¹ Options purchased are included in the net realized gain (loss) from investments and net change in unrealized appreciation (depreciation) on investments.

BLACKROCK FUNDS II JUNE 30, 2015 97

Notes to Financial Statements (continued)

For the six months ended June 30, 2015, the average quarterly balances of outstanding derivative financial instruments were as follows:

	Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities
Financial futures contracts:
Average notional value of contracts — long			—		$	3,875,914,097
Average notional value of contracts — short		$	10,044,172		$	19,080,498,329
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		$	93,165,952		$	14,776,594,373
Average amounts sold — USD		$	68,771,135		$	4,532,831,791
Options:
Average market value of option contracts purchased		$	92,937		$	176,088,452
Average market value of option contracts written		$	238,780		$	118,297,978
Average notional value of swaption contracts purchased			—		$	3,647,167,206
Average notional value of swaption contracts written			—		$	3,727,552,987
Credit default swaps:
Average notional value — buy protection		$	34,595,000		$	1,596,370,265
Average notional value — sell protection			—		$	1,979,089,887
Interest rate swaps:
Average notional value — pays fixed rate		$	18,550,000		$	2,776,394,410
Average notional value — receives fixed rate		$	750,647		$	4,146,237,898
Currency swaps:
Average notional value — pays			—		$	173,232,357
Average notional value — receives			—		$	176,915,500
Total return swaps:
Average notional value			—		$	435,552,265

Counterparty Credit Risk: 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.

A Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by such Fund. For OTC options purchased, each Fund bears the risk of loss of the amount of the premiums paid plus the positive change in market values net of any collateral held by such Fund should the counterparty fail to perform under the contracts. Options written by the Funds do not typically give rise to counterparty credit risk, as options written generally obligate the Funds, and not the counterparty, to perform.

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

In order to better define its contractual rights and to secure rights that will help the Funds mitigate their counterparty risk, the Funds may enter into an ISDA Master Agreement or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. When the Funds enters into an ISDA Master Agreement and an MRA and/or MSLA with the same counterparty, the agreements may contain a set-off provision allowing a fund to offset a net amount payable with amounts due to the Fund upon default of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. For example, notwithstanding what contractual rights may be included in an ISDA Master Agreement, such laws may prohibit the Fund from setting off amounts owed to a defaulting counterparty under an ISDA Master Agreement against amounts owed to the Fund by affiliates of the defaulting counterparty. The insolvency regimes of many jurisdictions do, however, generally permit set-off of simultaneous payables and receivables under certain types of financial contracts between the same legal entity upon a default of the entity, regardless of the existence of a contractual set-off right in those contracts. In addition, certain ISDA Master Agreements allow counterparties to OTC derivatives to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements, which would cause the Fund to accelerate payment of any net liability owed to the counterparty.

98 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

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 Funds and cash collateral received from the counterparty, if any, is reported separately on the Statements of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Funds, if any, is noted in the Schedules of Investments. Generally, the amount of collateral due from or to a party has to exceed a minimum transfer amount threshold (typically either $250,000 or $500,000) before a transfer is required, which is determined at the close of business of the Funds. Any additional required collateral is delivered to/pledged by the Funds on the next business day. Typically, the Funds and counterparties are not permitted to sell, re-pledge or use the collateral they receive. To the extent amounts due to the Funds from their counterparties are not fully collateralized, the Funds bear the risk of loss from counterparty non-performance. Likewise, to the extent the Funds have delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Funds bear the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral.

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

At June 30, 2015, the Funds’ derivative assets and liabilities (by type) are as follows:

	Emerging Markets Flexible Dynamic Bond						Strategic Income Opportunities
	Assets			Liabilities			Assets			Liabilities
Derivative Financial Instruments:
Financial futures contracts	$	1,284			—		$	9,257,130		$	9,622,905
Forward foreign currency exchange contracts		674,891		$	479,501			82,565,532			215,502,161
Options		7,161	1		214,027			138,522,075	1		103,175,061
Swaps — Centrally cleared		—			11,988			—			1,148,034
Swaps — OTC2		3,301,516			39,621			73,009,982			98,611,157
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	3,984,852		$	745,137		$	303,354,719		$	428,059,318
Derivatives not subject to an Master Netting Agreement or similar agreement (“MNA”)		(1,284	)		(11,988	)		(43,006,728	)		(17,556,232	)
Total derivative assets and liabilities subject to an MNA	$	3,983,568		$	733,149		$	260,347,991		$	410,503,086

¹ Includes options purchased at value which is included as Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Schedules of Investments.

² Includes unrealized appreciation/depreciation on OTC swaps and swap premiums paid/received in the Statements of Assets and Liabilities.

As of December 31, 2014, the following tables present the Funds’ derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received/pledged by the Funds:

Emerging Markets Flexible Dynamic Bond
	Gross Amounts Not Offset in the Statements of Assets and Liabilities and Subject to an MNA
Counterparty	Derivative Assets Subject to an MNA by Counterparty			Derivatives Available for Offset1				Non-cash Collateral Received		Cash Collateral Received2				Net Amount of Derivative Assets3
Bank of America N.A.		$	56,446		$	(56,446	)		—			—				—
Barclays Bank PLC			94,910			(74,883	)		—			—			$	20,027
BNP Paribas S.A.			7,829			(7,829	)		—			—				—
Citibank N.A.			696,131			(81,585	)		—		$	(614,546	)			—
Deutsche Bank AG			105,566			(59,746	)		—			—				45,820
Goldman Sachs Bank USA			1,316,941			—			—			(1,300,000	)			16,941
Goldman Sachs International			138,777			(40,325	)		—			—				98,452
HSBC Bank PLC			3,175			—			—			—				3,175
JPMorgan Chase Bank N.A.			1,335,493			(35,711	)		—			(200,000	)			1,099,782
Morgan Stanley & Co. International PLC			12,609			—			—			—				12,609
Royal Bank of Scotland PLC			215,368			(45,401	)		—			—				169,967
UBS AG			323			(323	)		—			—				—
Total		$	3,983,568		$	(402,249	)		—		$	(2,114,546	)		$	1,466,773

BLACKROCK FUNDS II JUNE 30, 2015 99

Notes to Financial Statements (continued)

Counterparty	Derivative Liabilities Subject to an MNA  by Counterparty			Derivatives Available for Offset1				Non-cash Collateral Pledged		Cash Collateral Pledged				Net Amount of Derivative Liabilities4
Bank of America N.A.		$	214,027		$	(56,446	)		—			—			$	157,581
Barclays Bank PLC			74,883			(74,883	)		—			—				—
BNP Paribas S.A.			39,765			(7,829	)		—			—				31,936
Citibank N.A.			81,585			(81,585	)		—			—				—
Deutsche Bank AG			59,746			(59,746	)		—			—				—
Goldman Sachs International			40,325			(40,325	)		—			—				—
JPMorgan Chase Bank N.A.			35,711			(35,711	)		—			—				—
Royal Bank of Scotland PLC			45,401			(45,401	)		—			—				—
Société Générale			84,374			—			—			—				84,374
Standard Chartered Bank			25,712			—			—			—				25,712
State Street Bank and Trust Co.			23,523			—			—			—				23,523
UBS AG			8,097			(323	)		—			—				7,774
Total		$	733,149		$	(402,249	)		—			—			$	330,900
Strategic Income Opportunities
	Gross Amounts Not Offset in the Statements of Assets and Liabilities and Subject to an MNA
Counterparty	Derivative Assets Subject to an MNA by Counterparty			Derivatives Available for Offset1				Non-cash Collateral Received		Cash Collateral Received				Net Amount of Derivative Assets3
Bank of America N.A.		$	14,447,740		$	(14,447,740	)		—			—				—
The Bank of New York Mellon			66,954			—			—			—			$	66,954
Barclays Bank PLC			24,765,533			(24,765,533	)		—			—				—
BNP Paribas S.A.			15,514,777			(15,514,777	)		—			—				—
Citibank N.A.			74,998,878			(46,652,345	)		—			—				28,346,533	5
Credit Suisse International			10,956,765			(10,956,765	)		—			—				—
Deutsche Bank AG			39,849,368			(39,849,368	)		—			—				—
Goldman Sachs Bank USA			1,401,863			(155,879	)		—		$	(1,100,000	)			145,984
Goldman Sachs International			16,093,859			(14,249,282	)		—			(1,800,000	)			44,577
HSBC Bank PLC			3,059,894			(3,059,894	)		—			—				—
HSBC Bank USA N.A.			270,858			(203,241	)		—			—				67,617
JPMorgan Chase Bank N.A.			20,862,014			(20,862,014	)		—			—				—
Morgan Stanley & Co. International PLC			1,933,932			(1,933,932	)		—			—				—
Morgan Stanley Capital Services LLC			2,678,995			(2,678,995	)		—			—				—
Royal Bank of Canada			211,339			—			—			—				211,339
Royal Bank of Scotland PLC			814,901			(115,710	)		—			—				699,191
Société Générale			173,981			(173,981	)		—			—				—
Standard Chartered Bank			8,116,244			(530,985	)		—			—				7,585,259
State Street Bank and Trust Co.			2,265,469			(712,812	)		—			—				1,552,657
UBS AG			21,864,627			(21,864,627	)		—			—				—
Total		$	260,347,991		$	(218,727,880	)		—		$	(2,900,000	)		$	38,720,111

100 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

Counterparty	Derivative Liabilities Subject to an MNA  by Counterparty			Derivatives Available for Offset1				Non-cash Collateral Pledged6				Cash Collateral Pledged6				Net Amount of Derivative Liabilities4
Bank of America N.A.		$	15,219,207		$	(14,447,740	)			—				—			$	771,467
Barclays Bank PLC			58,544,163			(24,765,533	)			—				—				33,778,630
BNP Paribas S.A.			34,024,463			(15,514,777	)		$	(828,693	)		$	(13,720,000	)			3,960,993
Citibank N.A.			46,652,345			(46,652,345	)			—				—				—
Credit Suisse International			15,482,596			(10,956,765	)			—				(4,525,831	)			—
Deutsche Bank AG			104,760,666			(39,849,368	)			—				—				64,911,298
Goldman Sachs Bank USA			155,879			(155,879	)			—				—				—
Goldman Sachs International			14,249,282			(14,249,282	)			—				—				—
HSBC Bank PLC			13,140,630			(3,059,894	)			(5,716,736	)			(4,364,000	)			—
HSBC Bank USA N.A.			203,241			(203,241	)			—				—				—
JPMorgan Chase Bank N.A.			20,914,905			(20,862,014	)			—				—				52,891
Morgan Stanley & Co. International PLC			13,335,731			(1,933,932	)			—				(11,401,799	)			—
Morgan Stanley Capital Services LLC			7,127,946			(2,678,995	)			—				—				4,448,951
Royal Bank of Scotland PLC			115,710			(115,710	)			—				—				—
Société Générale			245,197			(173,981	)			—				—				71,216
Standard Chartered Bank			530,985			(530,985	)			—				—				—
State Street Bank and Trust Co.			712,812			(712,812	)			—				—				—
UBS AG			65,087,328			(21,864,627	)			—				—				43,222,701
Total		$	410,503,086		$	(218,727,880	)		$	(6,545,429	)		$	(34,011,630	)		$	151,218,147

¹  The amount of derivatives available for offset is limited to the amount of assets and/or liabilities that are subject to an MNA.

²  Excess of collateral received from the individual counterparty may not be shown for financial reporting purposes.

³  Net amount represents the net amount receivable from the counterparty in the event of default.

⁴  Net amount represents the net amount payable due to the counterparty in the event of default.

⁵  Net receivable is subject to set-off provision against net payable under the MRA.

⁶  Excess of collateral pledged from the individual counterparty may not be shown for financial reporting purposes.

5. Investment Advisory Agreement and Other Transactions with Affiliates:

The PNC Financial Services Group, Inc. is the largest stockholder and an affiliate of BlackRock, Inc. (“BlackRock”) for 1940 Act purposes.

The Trust, on behalf of the Funds, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment advisor, an indirect, wholly owned subsidiary of BlackRock, to provide investment advisory and administration services. The Manager is responsible for the management of each Fund’s portfolio and provides the necessary personnel, facilities, equipment and certain other services to the operations of each Fund. For such services, each Fund pays the Manager a monthly fee based on a percentage of each Fund’s average daily net assets at the following annual rates:

Average Daily Net Assets	Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities
First $1 Billion		0.600	%		0.550	%
$1 Billion - $2 Billion		0.550	%		0.500	%
$2 Billion - $3 Billion		0.525	%		0.475	%
Greater than $3 Billion		0.500	%		0.450	%

The Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds. These amounts are included in fees waived by the Manager in the Statements of Operations. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with each Fund’s investment in other affiliated investment companies, if any. For the six months ended June 30, 2015, the amounts waived were as follows:

Emerging Markets Flexible Dynamic Bond	$	1,617
Strategic Income Opportunities	$	1,589,771

For Strategic Income Opportunities, 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.

With respect to each Fund, the Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. With respect to Strategic Income Opportunities, the Manager has also entered into a separate sub-advisory agreement with BlackRock (Singapore) Limited (“BRS”), which is also an affiliate of the Manager. The Manager pays BIL and BRS, for services they provide, a monthly fee that is a percentage of the investment advisory fees paid by each Fund to the Manager.

BLACKROCK FUNDS II JUNE 30, 2015 101

Notes to Financial Statements (continued)

The Trust, on behalf of the Funds, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager. Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

	Investor A	Investor C
Service Fee	0.25%	0.25%
Distribution Fee	N/A	0.75%

Pursuant to sub-agreements with BRIL, broker-dealers and BRIL provide shareholder servicing and distribution services to the Funds. The ongoing service and/or distribution fee compensates BRIL and each broker-dealer for providing shareholder servicing and/or distribution related services to Investor A and Investor C shareholders.

For the six months ended June 30, 2015, the following table shows the class specific service and distribution fees borne directly by each class of each Fund:

	Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond		$	15,373		$	35,967		$	51,340
Strategic Income Opportunities		$	7,148,860		$	5,599,323		$	12,748,183

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. 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 six months ended June 30, 2015, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional			Investor A			Total
Strategic Income Opportunities		$	1,307,679		$	2,255		$	1,309,934

The Manager maintains a call center, which is responsible for providing certain shareholder services to the Funds, such as responding to shareholder inquiries and processing transactions based upon instructions from shareholders with respect to the subscription and redemption of Fund shares. For the six months ended June 30, 2015, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	BlackRock			Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond		$	87		$	168		$	294		$	339		$	888
Strategic Income Opportunities			—		$	16,484		$	13,105		$	5,502		$	35,091
For the six months ended June 30, 2015, the following table shows the class specific transfer agent fees borne directly by each class of each Fund:
	BlackRock			Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond		$	284		$	10,236		$	11,427		$	9,077		$	31,024
Strategic Income Opportunities			—		$	5,533,031		$	3,363,686		$	542,304		$	9,439,021

The Trust, on behalf of the Funds, entered into an Administration Agreement with the Manager, an indirect, wholly owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of the Funds. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.

Average Daily Net Assets	Administration Fee
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	%

In addition, the Manager charges each of the share classes an administration fee, which is shown as administration — class specific in the Statements of Operations, at an annual rate of 0.02% of the average daily net assets of each respective class.

102 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

For the six months ended June 30, 2015, the following table shows the class specific administration fees borne directly by each class of each Fund:

	BlackRock			Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond		$	1,990		$	1,959		$	1,230		$	719		$	5,898
Strategic Income Opportunities			—		$	2,186,434		$	571,912		$	111,987		$	2,870,333

BNYMIS and the Manager may have, at their discretion, voluntarily waived all or any portion of their administration fees for a Fund or a share class, which are included in administration fees waived — class specific in the Statements of Operations.

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business. The Manager has agreed not to reduce or discontinue this contractual waiver or reimbursement prior to May 1, 2016, unless approved by the Board, including a majority of the Independent Trustees. The expense limitations as a percentage of average daily net assets are as follows:

	BlackRock	Institutional	Investor A	Investor C
Emerging Markets Flexible Dynamic Bond	0.85%	1.00%	1.25%		2.00	%
Strategic Income Opportunities	N/A	0.65%	0.90%		1.65	%

These amounts waived or reimbursed are included in fees waived by the Manager, and shown as administration fees waived — class specific, transfer agent fees waived — class specific and transfer agent fees reimbursed — class specific, respectively, in the Statements of Operations. For the six months ended June 30, 2015, the amounts included in fees waived by Manager were as follows:

Emerging Markets Flexible Dynamic Bond $119,475

Class specific expense waivers or reimbursements are as follows:

Administration Fees Waived
	BlackRock			Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond		$	1,978		$	642		$	858		$	694		$	4,172
Strategic Income Opportunities			—		$	—		$	102,871		$	3,533		$	106,404
Transfer Agent Fees Waived
	BlackRock			Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond			$85		$	25		$	180		$	329		$	619
Strategic Income Opportunities			—			—		$	2,357		$	292		$	2,649
Transfer Agent Fees Reimbursed
	BlackRock			Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond			$173		$	78		$	2,552		$	3,460		$	6,263
Strategic Income Opportunities			—			—		$	251,276		$	1,154		$	252,430

If during the Funds’ fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver or reimbursement from the Manager, are less than the expense limit for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of (a) the amount of fees waived or expenses reimbursed during those prior two fiscal years under the agreement and (b) the amount by which the expense limit for that share class exceeds the operating expenses of the share class for the current fiscal year, provided that: (1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year and (2) the Manager or an affiliate continues to serve as the Funds’ investment advisor or administrator. In the event the expense limit for a share class is changed subsequent to a fiscal year in which the Manager becomes entitled to reimbursement for fees waived or reimbursed, the amount available to reimburse the Manager shall be calculated by reference to the expense limit for that share class in effect at the time the Manager became entitled to receive such reimbursement, rather than the subsequently changed expense limit for that share class.

BLACKROCK FUNDS II JUNE 30, 2015 103

Notes to Financial Statements (continued)

For the six months ended June 30, 2015, the Manager recouped the following class specific waivers and/or reimbursements previously recorded by the Funds:

Recoupment of Past Waived Fees
	Institutional			Investor A			Investor C			Total
Emerging Markets Flexible Dynamic Bond		$	3,065		$	245		$	45		$	3,355
Strategic Income Opportunities		$	223,376		$	836,073		$	180,275		$	1,239,724

On June 30, 2015, the Fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring December 31,
	2015		2016		2017
Emerging Markets Flexible Dynamic Bond
Fund Level	$	142,265	$	248,145	$	119,475
BlackRock	$	4,095	$	4,525	$	2,237
Institutional		—		—	$	745
Investor A	$	23,850	$	11,603	$	3,590
Investor C	$	12,556	$	10,344	$	4,482
Strategic Income Opportunities
Investor A		—	$	165,919	$	356,504
Investor C	$	124,912	$	105,437	$	4,978

For the six months ended June 30, 2015, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

Emerging Markets Flexible Dynamic Bond	$	686
Strategic Income Opportunities	$	109,935

For the six months ended June 30, 2015, affiliates received CDSCs as follows:

	Investor A			Investor C
Emerging Markets Flexible Dynamic Bond			—		$	190
Strategic Income Opportunities		$	83,104		$	112,656

The Manager reimbursed Emerging Markets Flexible Dynamic Bond $42,825 to compensate for a trade processing error.

Certain officers and/or trustees of the Trust are officers and/or trustees of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in officer and trustees in the Statements of Operations.

The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment advisor, common officers, or common trustees. For the six months ended June 30, 2015, the purchase and sale transactions with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

	Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities
Purchases		$	5,336		$	50,201,601
Sales		$	359,815		$	30,320,248

6. Purchases and Sales:

For the six months ended June 30, 2015, purchases and sales of investments, including mortgage dollar rolls and TBA transactions and excluding short-term securities, were as follows:

Purchases
	Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities
Non-U.S. Government Securities		$	117,001,733		$	138,090,248,031
U.S. Government Securities			6,598,160			57,037,057,408
Total Purchases		$	123,599,893		$	195,127,305,439

104 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (continued)

Sales
	Emerging Markets Flexible Dynamic Bond		Strategic Income Opportunities
Non-U.S. Government Securities		$124,560,837		$	137,809,506,208	*
U.S. Government Securities		6,599,098			60,238,839,381
Total Sales		$131,159,935		$	198,048,345,589
* Including paydowns.

For the six months ended June 30, 2015, purchases and sales related to mortgage dollar rolls were as follows:

	Strategic Income Opportunities
Purchases	$	57,856,277,900
Sales	$	57,822,987,105

7. Income Tax Information:

It is the Funds’ 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 their taxable income to their shareholders. Therefore, no federal income tax provision is required.

The Funds file U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Funds’ U.S. federal tax returns remains open for each of the four years ended December 31, 2014. The statutes of limitations on the Funds’ state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of June 30, 2015, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

As of December 31, 2014, BlackRock Emerging Markets Flexible Dynamic Bond had a capital loss carryforward, with no expiration date, available to offset future realized capital gains of $8,127,230.

As of June 30, 2015, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

	Emerging Markets Flexible Dynamic Bond			Strategic Income Opportunities
Tax cost		$	54,740,779		$	48,905,238,019
Gross unrealized appreciation		$	427,090		$	220,093,478
Gross unrealized depreciation			(715,952)			(807,877,787	)
Net unrealized depreciation		$	(288,862)		$	(587,784,309	)

8. Borrowings:

The Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.1 billion credit agreement with a group of lenders, under which the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.6 billion, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.06% 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 2016 unless extended or renewed. Participating Funds paid administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statements of Operations, and along with commitment 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 six months ended June 30, 2015, the Funds did not borrow under the credit agreement.

9. Principal Risks:

In the normal course of business, the Funds invest in securities and enter into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer of a security to meet all its obligations, including to pay principal and interest when due (issuer credit risk). The value of securities held by the Funds may decline in response to certain events, including those directly involving the issuers whose securities are owned by the Funds; conditions affecting the general economy; overall market changes; local, regional or global political, social or economic instability; and currency, interest rate and price fluctuations. Similar to issuer credit risk, the Funds may be exposed to counterparty credit risk, or the risk that an entity with which the Funds have unsettled or open transactions may fail to or be unable to perform on its commitments. The Funds manage counterparty

BLACKROCK FUNDS II JUNE 30, 2015 105

Notes to Financial Statements (continued)

credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Funds to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Funds’ exposure to market, issuer and counterparty credit risks with respect to these financial assets is generally approximated by their value recorded in the Statements of Assets and Liabilities, less any collateral held by the Funds.

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

The Funds invest a significant portion of their assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Funds’ investments.

10. Capital Share Transactions:

Transactions in capital shares for each class were as follows:	Six Months Ended June 30, 2014						Year Ended December 31, 2014
Emerging Markets Flexible Dynamic Bond	Shares			Amount			Shares			Amount
BlackRock
Shares sold		66		$	575			1,010,384		$	9,073,938
Shares issued in reinvestment of distributions		36,297			321,972			84,531			751,959
Shares redeemed		(34,581	)		(306,105	)		(47,914	)		(427,459	)
Net increase		1,782		$	16,442			1,047,001		$	9,398,438
Institutional
Shares sold		340,219		$	2,989,548			1,587,397		$	14,162,154
Shares issued in reinvestment of distributions		29,231			259,426			143,802			1,275,339
Shares redeemed		(1,037,395	)		(9,131,841	)		(6,034,314	)		(53,446,867	)
Net decrease		(667,945	)	$	(5,882,867	)		(4,303,115	)	$	(38,009,374	)
Investor A
Shares sold		239,298		$	2,113,571			659,691		$	5,870,973
Shares issued in reinvestment of distributions		17,843			158,169			72,426			643,332
Shares redeemed		(231,590	)		(2,045,035	)		(1,492,591	)		(13,266,012	)
Net increase (decrease)		25,551		$	226,705			(760,474	)	$	(6,751,707	)
Investor C
Shares sold		71,696		$	633,430			170,314		$	1,515,095
Shares issued in reinvestment of distributions		7,508			66,672			29,630			263,176
Shares redeemed		(120,422	)		(1,063,553	)		(407,572	)		(3,621,170	)
Net decrease		(41,218	)	$	(363,451	)		(207,628	)	$	(1,842,899	)
Total net decrease		(681,830	)	$	(6,003,171	)		(4,224,216	)	$	(37,205,542	)

106 BLACKROCK FUNDS II JUNE 30, 2015

Notes to Financial Statements (concluded)

	Six Months Ended June 30, 2015						Year Ended December 31, 2014
Strategic Income Opportunities	Shares			Amount			Shares			Amount
Institutional
Shares sold		605,161,830		$	6,162,116,935			1,462,966,058		$	15,037,023,932
Shares issued in reinvestment of distributions		19,858,266			201,976,125			55,348,111			564,491,919
Shares redeemed		(283,059,038	)		(2,879,076,925	)		(250,410,194	)		(2,570,760,007	)
Net increase		341,961,058		$	3,485,016,135			1,267,903,975		$	13,030,755,844
Investor A
Shares sold		281,938,850		$	2,862,927,543			239,727,085		$	2,464,421,501
Shares issued in reinvestment of distributions		5,188,601			52,773,067			15,013,932			153,355,126
Shares redeemed		(77,465,391	)		(788,736,772	)		(167,804,674	)		(1,729,199,355	)
Net increase		209,662,060		$	2,126,963,838			86,936,343		$	888,577,272
Investor C
Shares sold		17,742,893		$	180,448,107			42,885,488		$	440,392,528
Shares issued in reinvestment of distributions		565,152			5,741,924			2,979,305			30,359,639
Shares redeemed		(11,555,783	)		(117,489,026	)		(16,920,129	)		(173,710,649	)
Net increase		6,752,262		$	68,701,005			28,944,664		$	297,041,518
Total Net Increase		558,375,380		$	5,680,680,978			1,383,784,982		$	14,216,374,634

11. Subsequent Events:

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

BLACKROCK FUNDS II JUNE 30, 2015 107

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

The Board of Trustees (the “Board,” and the members of which are referred to as “Board Members”) of BlackRock Funds II (the “Trust”) met in person on April 14, 2015 (the “April Meeting”) and May 12-13, 2015 (the “May Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (the “Emerging Markets Flexible Dynamic Bond Portfolio”) and BlackRock Strategic Income Opportunities Portfolio (the “Strategic Income Portfolio”) (each, a “Fund,” and collectively, the “Funds”), each a series of the Trust, and BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Board also considered the approval of the sub-advisory agreements (the “Sub-Advisory Agreements”) between the Manager and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited (together, the “Sub-Advisors”), with respect to the Funds, as applicable. The Manager and the Sub-Advisors are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

On the date of the April and May Meetings, the Board consisted of thirteen individuals, ten of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). One of the Board Members is a non-management interested Board Member by virtue of his former positions with BlackRock, Inc. and its affiliates. The Board Members are responsible for the oversight of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Chairman of the Board is an Independent Board Member. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Performance Oversight Committee and the Executive Committee, each of which also has one interested Board Member).

The Agreements

Pursuant to the 1940 Act, the Board is required to consider the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each extending over two days, a fifth one-day meeting to consider specific information surrounding the consideration of renewing the Agreements and additional in-person and telephonic meetings as needed. In connection with this year-long deliberative process, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; administrative and shareholder services; the oversight of fund service providers; marketing services; risk oversight; compliance; and ability to meet applicable legal and regulatory requirements.

The Board, acting directly and through its committees, considers at each of its meetings, and from time to time as appropriate, factors that are relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year and/or since inception periods, as applicable, against peer funds, applicable benchmark, and performance metrics, as applicable, as well as senior management’s and portfolio managers’ analysis of the reasons for any over-performance or underperformance relative to peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by each Fund for services, such as marketing and distribution, call center and fund accounting; (c) Fund operating expenses and how BlackRock allocates expenses to each Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective(s), policies and restrictions, and meeting new regulatory requirements; (e) each Fund’s compliance with its compliance policies and procedures; (f) the nature, cost and character of non-investment management services provided by BlackRock and its affiliates; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of management fees for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund and institutional account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

The Board has engaged in an ongoing strategic review with BlackRock of opportunities to consolidate funds and of BlackRock’s commitment to investment performance. BlackRock also furnished information to the Board in response to specific questions. These questions covered issues such as: BlackRock’s profitability; investment performance; subadvisory and advisory relationships with other clients (including mutual funds sponsored by third parties); the viability of specific funds; fund size and manager capacity; BlackRock’s research capabilities; portfolio managers’ investments in funds they manage; funds’ portfolio risk targets; and management fee levels and breakpoints. The Board further discussed with BlackRock: BlackRock’s management structure; portfolio turnover, execution quality and use of soft dollars; BlackRock’s portfolio manager compensation and performance accountability; marketing support for the funds; services provided to the funds by BlackRock affiliates; and BlackRock’s oversight of relationships with third party service providers.

108 BLACKROCK FUNDS II JUNE 30, 2015

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)

Board Considerations in Approving the Agreements

The Approval Process: Prior to the April Meeting, the Board requested and received materials specifically relating to the Agreements. The Board is continuously engaged in a process with its independent legal counsel and BlackRock to review the nature and scope of the information provided to better assist its deliberations. The materials provided in connection with the April Meeting included (a) information independently compiled and prepared by Lipper, Inc. (“Lipper”) on Fund fees and expenses as compared with a peer group of funds as determined by Lipper (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds as determined by Lipper¹ and certain performance metrics; (b) information on the profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (c) a general analysis provided by BlackRock concerning investment management fees charged to other clients, such as institutional clients, sub-advised mutual funds, ETFs and closed-end funds, under similar investment mandates, as well as the performance of such other clients, as applicable; (d) review of non-management fees; (e) the existence, impact and sharing of potential economies of scale; (f) a summary of aggregate amounts paid by each Fund to BlackRock; (g) sales and redemption data regarding each Fund’s shares; and (h) if applicable, a comparison of management fees to similar BlackRock open-end funds, as classified by Lipper.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the May Meeting.

At the May Meeting, the Board, including the Independent Board Members, approved the continuation of the Advisory Agreement between the Manager and each Fund, and the Sub-Advisory Agreements between the Manager and the Sub-Advisors, with respect to each Fund, each for a one-year term ending June 30, 2016. In approving the continuation of the Agreements, the Board considered: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund and BlackRock; (c) the advisory fee and the cost of the services and profits to be realized by BlackRock and its affiliates from their relationship with each Fund; (d) each Fund’s costs to investors compared to the costs of Expense Peers and performance compared to the relevant performance comparison as previously discussed; (e) the sharing of potential economies of scale; (f) fall-out benefits to BlackRock and its affiliates as a result of its relationship with each Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as payments made to BlackRock or its affiliates relating to the distribution of Fund shares, securities lending and cash management, services related to the valuation and pricing of Fund portfolio holdings, direct and indirect benefits to BlackRock and its affiliates from their relationship with each Fund and advice from independent legal counsel with respect to the review process and materials submitted for the Board’s review. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services and the resulting performance of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, a relevant benchmark, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance and each Fund’s investment objective(s), strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the number, education and experience of investment personnel generally and each Fund’s portfolio management team; BlackRock’s research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of technology; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to advisory services, the Board considered the quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide each Fund with certain administrative, shareholder and other services (in addition to any such services provided to each Fund by third parties) and officers and other personnel as are necessary for the operations of each Fund. In particular, BlackRock and its affiliates provide each Fund with the following administrative services including, among others: (i) preparing disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) overseeing and coordinating the activities of other service providers; (iv) organizing Board meetings and preparing the materials for such Board meetings; (v) providing legal and compliance support; (vi) furnishing analytical and other support to assist the Board in its

¹  Funds are ranked by Lipper in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable.

BLACKROCK FUNDS II JUNE 30, 2015 109

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)

consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (vii) performing other administrative functions necessary for the operation of each Fund, such as tax reporting, fulfilling regulatory filing requirements and call center services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations.

B. The Investment Performance of each Fund and BlackRock

The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the April Meeting, the Board worked with its independent legal counsel, BlackRock and Lipper to develop a template for, and was provided with, reports independently prepared by Lipper, which included a comprehensive analysis of each Fund’s performance. The Board also reviewed a narrative and statistical analysis of the Lipper data that was prepared by BlackRock. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to other funds in its applicable Lipper category and certain performance metrics. The Board was provided with a description of the methodology used by Lipper to select peer funds and periodically meets with Lipper representatives to review its methodology. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

In evaluating performance, the Board recognized that the performance data reflects a snapshot of a period or as of a particular date and that selecting a different performance period could produce significantly different results. Further, the Board recognized that it is possible that long-term performance can be adversely affected by even one period of significant underperformance so that a single investment decision or theme has the ability to affect long-term performance disproportionately.

The Board noted that for each of the one-, three- and five-year periods reported, the Emerging Markets Flexible Dynamic Bond Portfolio ranked in the first quartile against its Lipper Performance Universe. The Board also noted a comparison of the Emerging Markets Flexible Dynamic Bond Portfolio performance relative to certain other performance metrics that reflect the Emerging Markets Flexible Dynamic Bond Portfolio’s performance in light of its outcome-oriented objective. BlackRock believes that these additional performance metrics are appropriate given the Fund’s objective. The Board noted that effective January 2, 2014, the Emerging Markets Flexible Dynamic Bond Portfolio had undergone a change in its investment strategy, and in that connection had changed its name from BlackRock Emerging Market Local Debt Portfolio to BlackRock Emerging Markets Flexible Dynamic Bond Portfolio.

The Board noted that for the one-, three- and five-year periods reported, the Strategic Income Portfolio ranked in the first, first and second quartiles, respectively, against its Lipper Performance Universe. The Board also noted a comparison of Strategic Income Portfolio performance relative to certain other performance metrics that reflect the Strategic Income Portfolio’s performance in light of its outcome-oriented objective. BlackRock believes that these additional performance metrics are appropriate given the Strategic Income Portfolio’s objective.

C. Consideration of the Advisory/Management Fees and the Cost of the Services and Profits to be Realized by BlackRock and its Affiliates from their Relationship with each Fund

The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with the other funds in its Lipper category. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of other funds in its Lipper category. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non 12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds.

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with a profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2014 compared to available aggregate profitability data provided for the two prior years. The Board reviewed BlackRock’s profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. As a result, calculating and comparing profitability at individual fund levels is difficult.

110 BLACKROCK FUNDS II JUNE 30, 2015

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)

The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly-traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of technology at BlackRock, BlackRock’s expense management, and the relative product mix.

In addition, the Board considered the cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ profits relating to the management and distribution of each Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs to the management of each Fund. The Board may periodically receive and review information from independent third parties as part of its annual evaluation. BlackRock retained an independent third party to evaluate its cost allocation methodologies in the context of BlackRock’s 1940 Act Fund business. The Board considered the results of that evaluation in connection with BlackRock’s profitability reporting. The Board also considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk and liability profile in servicing each Fund in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund and institutional account product channels, as applicable.

The Board noted that the Emerging Markets Flexible Dynamic Bond Portfolio’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the Emerging Markets Flexible Dynamic Bond Portfolio’s Expense Peers. The Board also noted that the Emerging Markets Flexible Dynamic Bond Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Emerging Markets Flexible Dynamic Bond Portfolio increases above certain contractually specified levels. The Board further noted that BlackRock has contractually agreed to a cap on the Emerging Markets Flexible Dynamic Bond Portfolio’s total expenses as a percentage of the Emerging Markets Flexible Dynamic Bond Portfolio’s average daily net assets on a class-by-class basis.

The Board noted that the Strategic Income Portfolio’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and first quartiles, respectively, relative to the Strategic Income Portfolio’s Expense Peers. The Board also noted that the Strategic Income Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Strategic Income Portfolio increases above certain contractually specified levels. The Board further noted that BlackRock has contractually agreed to a cap on the Strategic Income Portfolio’s total expenses as a percentage of the Strategic Income Portfolio’s average daily net assets on a class-by-class basis.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase, as well as the existence of expense caps, as applicable. The Board also considered the extent to which each Fund benefits from such economies and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to participate in these economies of scale, for example through the use of revised breakpoints in the advisory fee based upon the asset level of each Fund. In its consideration, the Board Members took into account the existence of any expense caps and further considered the continuation and/or implementation, as applicable, of such caps.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from their respective relationships with each Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to each Fund, including for administrative, distribution, securities lending and cash management services. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that BlackRock may use and benefit from third party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts. The Board further noted that it had considered the investment by BlackRock’s funds in affiliated ETFs without any offset against the management fees payable by the funds to BlackRock.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the open-end fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that each Fund’s fees and expenses are too high or if they are dissatisfied with the performance of each Fund.

BLACKROCK FUNDS II JUNE 30, 2015 111

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (concluded)

Conclusion

The Board, including the Independent Board Members, approved the continuation of the Advisory Agreement between the Manager and the Fund for a one-year term ending June 30, 2016, and the Sub-Advisory Agreements between the Manager and the Sub-Advisors, with respect to each Fund, for a one-year term ending June 30, 2016. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination. The contractual fee arrangements for each Fund reflect the results of several years of review by the Board Members and predecessor Board Members, and discussions between such Board Members (and predecessor Board Members) and BlackRock. As a result, the Board Members’ conclusions may be based in part on their consideration of these arrangements in prior years.

112 BLACKROCK FUNDS II JUNE 30, 2015

Officers and Trustees

Robert M. Hernandez, Chairman of the Board and Trustee

Fred G. Weiss, Vice Chair of the Board and Trustee

James H. Bodurtha, Trustee

Bruce R. Bond, Trustee

Valerie G. Brown, Trustee

Donald W. Burton, Trustee

Honorable Stuart E. Eizenstat, Trustee

Robert Fairbairn, Trustee

Kenneth A. Froot, Trustee

Henry Gabbay, Trustee

John F. O’Brien, Trustee

Donald C. Opatrny, Trustee

Roberta Cooper Ramo, Trustee

David H. Walsh, Trustee

John M. Perlowski, Trustee, President and Chief Executive Officer

Jennifer McGovern, Vice President

Neal Andrews, Chief Financial Officer

Jay Fife, Treasurer

Charles Park, Chief Compliance Officer

Fernanda Piedra, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Effective March 1, 2015, Charles Park resigned as Anti-Money Laundering Officer of the Trust and Fernanda Piedra became Anti-Money Laundering Compliance Officer of the Trust.

Effective as of the close of business on May 13, 2015, Valerie G. Brown and Donald C. Opatrny were appointed to serve as Trustees of the Trust.

Investment Advisor and Administrator BlackRock Advisors, LLC Wilmington, DE 19809	Sub-Advisors BlackRock International Limited Edinburgh, EH3 8BL United Kingdom BlackRock (Singapore) Limited1 079912 Singapore	Accounting Agent, and Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809	Custodians The Bank of New York Mellon1 New York, NY 10286 Brown Brothers Harriman & Co.2 Boston, MA 02109
Distributor BlackRock Investments, LLC New York, NY 10022	Legal Counsel Willkie Farr & Gallagher LLP New York, NY 10019	Independent Registered Public Accounting Firm Deloitte & Touche LLP Philadelphia, PA 19103	Address of the Trust 100 Bellevue Parkway Wilmington, DE 19809

¹ For Strategic Income Opportunities.

² For Emerging Markets Flexible Dynamic Bond.

BLACKROCK FUNDS II JUNE 30, 2015 113

Additional Information

      General Information

Householding

The Funds will mail only one copy of shareholder documents, including prospectuses, annual and semi-annual reports and proxy statements, to shareholders with multiple accounts at the same address. This practice is commonly called “householding” and is intended to reduce expenses and eliminate duplicate mailings of shareholder documents. Mailings of your shareholder documents may be householded indefinitely unless you instruct us otherwise. If you do not want the mailing of these documents to be combined with those for other members of your household, please call the Funds at (800) 441-7762.

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Forms N-Q are available on the SEC’s website at http://www.sec.gov and may also be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. Information on how to access documents on the SEC’s website without charge may be obtained by calling (800) SEC-0330. The Funds’ Forms N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities is available upon request and without charge (1) by calling (800) 441-7762; (2) at http://www.blackrock.com; and (3) on the SEC’s website at http://www.sec.gov.

Availability of Proxy Voting Record

Information about how the Funds voted proxies relating to securities held in the Funds’ portfolios during the most recent 12-month period ended June 30 is available upon request and without charge (1) at http://www.blackrock.com or by calling (800) 441-7762 and (2) on the SEC’s website at http://www.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 http://www.blackrock.com for more information.

      Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM EST on any business day to get information about your account balances, recent transactions and share prices. You can also reach us on the Web at http://www.blackrock.com/funds.

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.

114 BLACKROCK FUNDS II JUNE 30, 2015

Additional Information (concluded)

      BlackRock Privacy Principles

BlackRock is committed to maintaining the privacy of its current and former fund investors and individual clients (collectively, “Clients”) and to safeguarding their non-public personal information. The following information is provided to help you understand what personal information BlackRock collects, how we protect that information and why in certain cases we share such information with select parties.

If you are located in a jurisdiction where specific laws, rules or regulations require BlackRock to provide you with additional or different privacy-related rights beyond what is set forth below, then BlackRock will comply with those specific laws, rules or regulations.

BlackRock obtains or verifies personal non-public information from and about you from different sources, including the following: (i) information we receive from you or, if applicable, your financial intermediary, on applications, forms or other documents; (ii) information about your transactions with us, our affiliates, or others; (iii) information we receive from a consumer reporting agency; and (iv) from visits to our websites.

BlackRock does not sell or disclose to non-affiliated third parties any non-public personal information about its Clients, except as permitted by law or as is necessary to respond to regulatory requests or to service Client accounts. These non-affiliated third parties are required to protect the confidentiality and security of this information and to use it only for its intended purpose.

We may share information with our affiliates to service your account or to provide you with information about other BlackRock products or services that may be of interest to you. In addition, BlackRock restricts access to non-public personal information about its Clients to those BlackRock employees with a legitimate business need for the information. BlackRock maintains physical, electronic and procedural safeguards that are designed to protect the non-public personal information of its Clients, including procedures relating to the proper storage and disposal of such information.

BLACKROCK FUNDS II JUNE 30, 2015 115

This report is intended for current holders. It is not authorized for use as an offer of sale or a solicitation of an offer to buy shares of the Funds unless preceded or accompanied by the Funds’ current prospectus. Past performance results shown in this report should not be considered a representation of future performance. Investment returns and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Statements and other information herein are as dated and are subject to change.

EMDSIP-6/15-SAR

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report
Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report
Item 4 –	Principal Accountant Fees and Services – Not Applicable to this semi-annual report
Item 5 –	Audit Committee of Listed Registrants – Not Applicable
Item 6 –	Investments
	(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.
	(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.
Item 7 –	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable
Item 8 –	Portfolio Managers of Closed-End Management Investment Companies – Not Applicable
Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 –	Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.
Item 11 –	Controls and Procedures
	(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.
	(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of 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 –	Exhibits attached hereto
	(a)(1) – Code of Ethics – Not Applicable to this semi-annual report
	(a)(2) – Certifications – Attached hereto
	(a)(3) – Not Applicable
	(b) – Certifications – Attached hereto

2

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 II

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Funds II
Date:	September 3, 2015

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 II
Date:	September 3, 2015
By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Funds II
Date:	September 3, 2015

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