What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Institutional Shares | $ |
How did the Fund perform last year?
For the reporting period ended December 31, 2025, the Fund's Institutional Shares returned 9.87%.
For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 7.30% and the Customized Reference Benchmark, a blend of 70% Bloomberg U.S. Aggregate Bond Index and 30% S&P 500 Index, returned 10.52%.
What contributed to performance?
Income-generating assets delivered broadly positive returns in 2025. The Fund’s allocation to investment-grade corporate bonds was the largest contributor to absolute performance given the category’s high portfolio weighting and strong return. The Fund’s position in equities also contributed, led by U.S. dividend-paying stocks, covered call strategies (which involve the use of derivatives), and international equities.
Holdings in floating-rate loans, which were well supported by solid underlying credit fundamentals, their floating-rate characteristics, and continued investor demand for yield, further contributed. The Fund also benefited from its holdings in AAA rated collateralized loan obligations and agency mortgage-backed securities.
The Fund held derivatives during the year. It used U.S. Treasury futures to manage interest rate risk, which contributed to absolute returns. Its use of Euro Bund futures to manage European interest rate risk was beneficial, as well.
The Fund’s cash position was modestly elevated at the end of the period given attractive yields and the investment adviser’s desire to have cash available to deploy if asset prices decline. The cash position contributed to absolute returns in 2025.
What detracted from performance?
Currency management strategies, which involve the use of derivatives, detracted given the weakness in the U.S. dollar relative to many international currencies.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: January 1, 2016 through December 31, 2025
Initial Investment of $10,000
Institutional Shares | Bloomberg U.S. Aggregate Bond Index | 17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index | Customized Reference Benchmark | |
|---|---|---|---|---|
Jan 16 | $ | $ | $ | $ |
Feb 16 | $ | $ | $ | $ |
Mar 16 | $ | $ | $ | $ |
Apr 16 | $ | $ | $ | $ |
May 16 | $ | $ | $ | $ |
Jun 16 | $ | $ | $ | $ |
Jul 16 | $ | $ | $ | $ |
Aug 16 | $ | $ | $ | $ |
Sep 16 | $ | $ | $ | $ |
Oct 16 | $ | $ | $ | $ |
Nov 16 | $ | $ | $ | $ |
Dec 16 | $ | $ | $ | $ |
Jan 17 | $ | $ | $ | $ |
Feb 17 | $ | $ | $ | $ |
Mar 17 | $ | $ | $ | $ |
Apr 17 | $ | $ | $ | $ |
May 17 | $ | $ | $ | $ |
Jun 17 | $ | $ | $ | $ |
Jul 17 | $ | $ | $ | $ |
Aug 17 | $ | $ | $ | $ |
Sep 17 | $ | $ | $ | $ |
Oct 17 | $ | $ | $ | $ |
Nov 17 | $ | $ | $ | $ |
Dec 17 | $ | $ | $ | $ |
Jan 18 | $ | $ | $ | $ |
Feb 18 | $ | $ | $ | $ |
Mar 18 | $ | $ | $ | $ |
Apr 18 | $ | $ | $ | $ |
May 18 | $ | $ | $ | $ |
Jun 18 | $ | $ | $ | $ |
Jul 18 | $ | $ | $ | $ |
Aug 18 | $ | $ | $ | $ |
Sep 18 | $ | $ | $ | $ |
Oct 18 | $ | $ | $ | $ |
Nov 18 | $ | $ | $ | $ |
Dec 18 | $ | $ | $ | $ |
Jan 19 | $ | $ | $ | $ |
Feb 19 | $ | $ | $ | $ |
Mar 19 | $ | $ | $ | $ |
Apr 19 | $ | $ | $ | $ |
May 19 | $ | $ | $ | $ |
Jun 19 | $ | $ | $ | $ |
Jul 19 | $ | $ | $ | $ |
Aug 19 | $ | $ | $ | $ |
Sep 19 | $ | $ | $ | $ |
Oct 19 | $ | $ | $ | $ |
Nov 19 | $ | $ | $ | $ |
Dec 19 | $ | $ | $ | $ |
Jan 20 | $ | $ | $ | $ |
Feb 20 | $ | $ | $ | $ |
Mar 20 | $ | $ | $ | $ |
Apr 20 | $ | $ | $ | $ |
May 20 | $ | $ | $ | $ |
Jun 20 | $ | $ | $ | $ |
Jul 20 | $ | $ | $ | $ |
Aug 20 | $ | $ | $ | $ |
Sep 20 | $ | $ | $ | $ |
Oct 20 | $ | $ | $ | $ |
Nov 20 | $ | $ | $ | $ |
Dec 20 | $ | $ | $ | $ |
Jan 21 | $ | $ | $ | $ |
Feb 21 | $ | $ | $ | $ |
Mar 21 | $ | $ | $ | $ |
Apr 21 | $ | $ | $ | $ |
May 21 | $ | $ | $ | $ |
Jun 21 | $ | $ | $ | $ |
Jul 21 | $ | $ | $ | $ |
Aug 21 | $ | $ | $ | $ |
Sep 21 | $ | $ | $ | $ |
Oct 21 | $ | $ | $ | $ |
Nov 21 | $ | $ | $ | $ |
Dec 21 | $ | $ | $ | $ |
Jan 22 | $ | $ | $ | $ |
Feb 22 | $ | $ | $ | $ |
Mar 22 | $ | $ | $ | $ |
Apr 22 | $ | $ | $ | $ |
May 22 | $ | $ | $ | $ |
Jun 22 | $ | $ | $ | $ |
Jul 22 | $ | $ | $ | $ |
Aug 22 | $ | $ | $ | $ |
Sep 22 | $ | $ | $ | $ |
Oct 22 | $ | $ | $ | $ |
Nov 22 | $ | $ | $ | $ |
Dec 22 | $ | $ | $ | $ |
Jan 23 | $ | $ | $ | $ |
Feb 23 | $ | $ | $ | $ |
Mar 23 | $ | $ | $ | $ |
Apr 23 | $ | $ | $ | $ |
May 23 | $ | $ | $ | $ |
Jun 23 | $ | $ | $ | $ |
Jul 23 | $ | $ | $ | $ |
Aug 23 | $ | $ | $ | $ |
Sep 23 | $ | $ | $ | $ |
Oct 23 | $ | $ | $ | $ |
Nov 23 | $ | $ | $ | $ |
Dec 23 | $ | $ | $ | $ |
Jan 24 | $ | $ | $ | $ |
Feb 24 | $ | $ | $ | $ |
Mar 24 | $ | $ | $ | $ |
Apr 24 | $ | $ | $ | $ |
May 24 | $ | $ | $ | $ |
Jun 24 | $ | $ | $ | $ |
Jul 24 | $ | $ | $ | $ |
Aug 24 | $ | $ | $ | $ |
Sep 24 | $ | $ | $ | $ |
Oct 24 | $ | $ | $ | $ |
Nov 24 | $ | $ | $ | $ |
Dec 24 | $ | $ | $ | $ |
Jan 25 | $ | $ | $ | $ |
Feb 25 | $ | $ | $ | $ |
Mar 25 | $ | $ | $ | $ |
Apr 25 | $ | $ | $ | $ |
May 25 | $ | $ | $ | $ |
Jun 25 | $ | $ | $ | $ |
Jul 25 | $ | $ | $ | $ |
Aug 25 | $ | $ | $ | $ |
Sep 25 | $ | $ | $ | $ |
Oct 25 | $ | $ | $ | $ |
Nov 25 | $ | $ | $ | $ |
Dec 25 | $ | $ | $ | $ |
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
Average Annual Total Returns | 1 Year | 5 Years | 10 Years |
|---|---|---|---|
Institutional Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | ( | ||
17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Key Fund statistics
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
|---|---|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
The Fund's returns shown prior to October 1, 2016 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name BlackRock Investment Grade Bond Portfolio.
The Customized Reference Benchmark is comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&P 500® Index (30%).
What did the Fund invest in?
(as of December 31, 2025)
Portfolio composition
Credit quality allocation
Investment Type | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Common Stocks........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Floating Rate Loan Interests........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Non-Agency Mortgage-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
U.S. Government Sponsored Agency Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Equity-Linked Notes........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Investment Companies........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Preferred Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
OtherFootnote Reference(b)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
Credit RatingFootnote Reference(c) | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
AAA/AaaFootnote Reference(d)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
AA/Aa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BBB/Baa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BB/Ba........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
B........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CCC/Caa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CC/Ca........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
C........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
N/R........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
| Footnote | Description |
Footnote(a) | Excludes short-term securities, short investments and options, if any. |
Footnote(b) | Ten largest investment types are presented. Additional investment types are found in Other. |
Footnote(c) | For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings, or Moody's Investors Service, Inc. 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. |
Footnote(d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa. |
Footnote(e) |
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund 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 Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BLDIX-12/25-AR
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Investor A Shares | $ |
How did the Fund perform last year?
For the reporting period ended December 31, 2025, the Fund's Investor A Shares returned 9.61%.
For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 7.30% and the Customized Reference Benchmark, a blend of 70% Bloomberg U.S. Aggregate Bond Index and 30% S&P 500 Index, returned 10.52%.
What contributed to performance?
Income-generating assets delivered broadly positive returns in 2025. The Fund’s allocation to investment-grade corporate bonds was the largest contributor to absolute performance given the category’s high portfolio weighting and strong return. The Fund’s position in equities also contributed, led by U.S. dividend-paying stocks, covered call strategies (which involve the use of derivatives), and international equities.
Holdings in floating-rate loans, which were well supported by solid underlying credit fundamentals, their floating-rate characteristics, and continued investor demand for yield, further contributed. The Fund also benefited from its holdings in AAA rated collateralized loan obligations and agency mortgage-backed securities.
The Fund held derivatives during the year. It used U.S. Treasury futures to manage interest rate risk, which contributed to absolute returns. Its use of Euro Bund futures to manage European interest rate risk was beneficial, as well.
The Fund’s cash position was modestly elevated at the end of the period given attractive yields and the investment adviser’s desire to have cash available to deploy if asset prices decline. The cash position contributed to absolute returns in 2025.
What detracted from performance?
Currency management strategies, which involve the use of derivatives, detracted given the weakness in the U.S. dollar relative to many international currencies.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: January 1, 2016 through December 31, 2025
Initial Investment of $10,000
Investor A Shares | Bloomberg U.S. Aggregate Bond Index | 17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index | Customized Reference Benchmark | |
|---|---|---|---|---|
Jan 16 | $ | $ | $ | $ |
Feb 16 | $ | $ | $ | $ |
Mar 16 | $ | $ | $ | $ |
Apr 16 | $ | $ | $ | $ |
May 16 | $ | $ | $ | $ |
Jun 16 | $ | $ | $ | $ |
Jul 16 | $ | $ | $ | $ |
Aug 16 | $ | $ | $ | $ |
Sep 16 | $ | $ | $ | $ |
Oct 16 | $ | $ | $ | $ |
Nov 16 | $ | $ | $ | $ |
Dec 16 | $ | $ | $ | $ |
Jan 17 | $ | $ | $ | $ |
Feb 17 | $ | $ | $ | $ |
Mar 17 | $ | $ | $ | $ |
Apr 17 | $ | $ | $ | $ |
May 17 | $ | $ | $ | $ |
Jun 17 | $ | $ | $ | $ |
Jul 17 | $ | $ | $ | $ |
Aug 17 | $ | $ | $ | $ |
Sep 17 | $ | $ | $ | $ |
Oct 17 | $ | $ | $ | $ |
Nov 17 | $ | $ | $ | $ |
Dec 17 | $ | $ | $ | $ |
Jan 18 | $ | $ | $ | $ |
Feb 18 | $ | $ | $ | $ |
Mar 18 | $ | $ | $ | $ |
Apr 18 | $ | $ | $ | $ |
May 18 | $ | $ | $ | $ |
Jun 18 | $ | $ | $ | $ |
Jul 18 | $ | $ | $ | $ |
Aug 18 | $ | $ | $ | $ |
Sep 18 | $ | $ | $ | $ |
Oct 18 | $ | $ | $ | $ |
Nov 18 | $ | $ | $ | $ |
Dec 18 | $ | $ | $ | $ |
Jan 19 | $ | $ | $ | $ |
Feb 19 | $ | $ | $ | $ |
Mar 19 | $ | $ | $ | $ |
Apr 19 | $ | $ | $ | $ |
May 19 | $ | $ | $ | $ |
Jun 19 | $ | $ | $ | $ |
Jul 19 | $ | $ | $ | $ |
Aug 19 | $ | $ | $ | $ |
Sep 19 | $ | $ | $ | $ |
Oct 19 | $ | $ | $ | $ |
Nov 19 | $ | $ | $ | $ |
Dec 19 | $ | $ | $ | $ |
Jan 20 | $ | $ | $ | $ |
Feb 20 | $ | $ | $ | $ |
Mar 20 | $ | $ | $ | $ |
Apr 20 | $ | $ | $ | $ |
May 20 | $ | $ | $ | $ |
Jun 20 | $ | $ | $ | $ |
Jul 20 | $ | $ | $ | $ |
Aug 20 | $ | $ | $ | $ |
Sep 20 | $ | $ | $ | $ |
Oct 20 | $ | $ | $ | $ |
Nov 20 | $ | $ | $ | $ |
Dec 20 | $ | $ | $ | $ |
Jan 21 | $ | $ | $ | $ |
Feb 21 | $ | $ | $ | $ |
Mar 21 | $ | $ | $ | $ |
Apr 21 | $ | $ | $ | $ |
May 21 | $ | $ | $ | $ |
Jun 21 | $ | $ | $ | $ |
Jul 21 | $ | $ | $ | $ |
Aug 21 | $ | $ | $ | $ |
Sep 21 | $ | $ | $ | $ |
Oct 21 | $ | $ | $ | $ |
Nov 21 | $ | $ | $ | $ |
Dec 21 | $ | $ | $ | $ |
Jan 22 | $ | $ | $ | $ |
Feb 22 | $ | $ | $ | $ |
Mar 22 | $ | $ | $ | $ |
Apr 22 | $ | $ | $ | $ |
May 22 | $ | $ | $ | $ |
Jun 22 | $ | $ | $ | $ |
Jul 22 | $ | $ | $ | $ |
Aug 22 | $ | $ | $ | $ |
Sep 22 | $ | $ | $ | $ |
Oct 22 | $ | $ | $ | $ |
Nov 22 | $ | $ | $ | $ |
Dec 22 | $ | $ | $ | $ |
Jan 23 | $ | $ | $ | $ |
Feb 23 | $ | $ | $ | $ |
Mar 23 | $ | $ | $ | $ |
Apr 23 | $ | $ | $ | $ |
May 23 | $ | $ | $ | $ |
Jun 23 | $ | $ | $ | $ |
Jul 23 | $ | $ | $ | $ |
Aug 23 | $ | $ | $ | $ |
Sep 23 | $ | $ | $ | $ |
Oct 23 | $ | $ | $ | $ |
Nov 23 | $ | $ | $ | $ |
Dec 23 | $ | $ | $ | $ |
Jan 24 | $ | $ | $ | $ |
Feb 24 | $ | $ | $ | $ |
Mar 24 | $ | $ | $ | $ |
Apr 24 | $ | $ | $ | $ |
May 24 | $ | $ | $ | $ |
Jun 24 | $ | $ | $ | $ |
Jul 24 | $ | $ | $ | $ |
Aug 24 | $ | $ | $ | $ |
Sep 24 | $ | $ | $ | $ |
Oct 24 | $ | $ | $ | $ |
Nov 24 | $ | $ | $ | $ |
Dec 24 | $ | $ | $ | $ |
Jan 25 | $ | $ | $ | $ |
Feb 25 | $ | $ | $ | $ |
Mar 25 | $ | $ | $ | $ |
Apr 25 | $ | $ | $ | $ |
May 25 | $ | $ | $ | $ |
Jun 25 | $ | $ | $ | $ |
Jul 25 | $ | $ | $ | $ |
Aug 25 | $ | $ | $ | $ |
Sep 25 | $ | $ | $ | $ |
Oct 25 | $ | $ | $ | $ |
Nov 25 | $ | $ | $ | $ |
Dec 25 | $ | $ | $ | $ |
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
Average Annual Total Returns | 1 Year | 5 Years | 10 Years |
|---|---|---|---|
Investor A Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Investor A Shares (with sales charge)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | ( | ||
17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Key Fund statistics
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
|---|---|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund's returns shown prior to October 1, 2016 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name BlackRock Investment Grade Bond Portfolio.
The Customized Reference Benchmark is comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&P 500® Index (30%).
What did the Fund invest in?
(as of December 31, 2025)
Portfolio composition
Credit quality allocation
Investment Type | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Common Stocks........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Floating Rate Loan Interests........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Non-Agency Mortgage-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
U.S. Government Sponsored Agency Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Equity-Linked Notes........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Investment Companies........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Preferred Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
OtherFootnote Reference(b)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
Credit RatingFootnote Reference(c) | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
AAA/AaaFootnote Reference(d)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
AA/Aa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BBB/Baa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BB/Ba........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
B........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CCC/Caa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CC/Ca........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
C........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
N/R........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
| Footnote | Description |
Footnote(a) | Excludes short-term securities, short investments and options, if any. |
Footnote(b) | Ten largest investment types are presented. Additional investment types are found in Other. |
Footnote(c) | For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings, or Moody's Investors Service, Inc. 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. |
Footnote(d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa. |
Footnote(e) |
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund 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 Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BLADX-12/25-AR
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Investor C Shares | $ |
How did the Fund perform last year?
For the reporting period ended December 31, 2025, the Fund's Investor C Shares returned 8.80%.
For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 7.30% and the Customized Reference Benchmark, a blend of 70% Bloomberg U.S. Aggregate Bond Index and 30% S&P 500 Index, returned 10.52%.
What contributed to performance?
Income-generating assets delivered broadly positive returns in 2025. The Fund’s allocation to investment-grade corporate bonds was the largest contributor to absolute performance given the category’s high portfolio weighting and strong return. The Fund’s position in equities also contributed, led by U.S. dividend-paying stocks, covered call strategies (which involve the use of derivatives), and international equities.
Holdings in floating-rate loans, which were well supported by solid underlying credit fundamentals, their floating-rate characteristics, and continued investor demand for yield, further contributed. The Fund also benefited from its holdings in AAA rated collateralized loan obligations and agency mortgage-backed securities.
The Fund held derivatives during the year. It used U.S. Treasury futures to manage interest rate risk, which contributed to absolute returns. Its use of Euro Bund futures to manage European interest rate risk was beneficial, as well.
The Fund’s cash position was modestly elevated at the end of the period given attractive yields and the investment adviser’s desire to have cash available to deploy if asset prices decline. The cash position contributed to absolute returns in 2025.
What detracted from performance?
Currency management strategies, which involve the use of derivatives, detracted given the weakness in the U.S. dollar relative to many international currencies.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: January 1, 2016 through December 31, 2025
Initial Investment of $10,000
Investor C Shares | Bloomberg U.S. Aggregate Bond Index | 17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index | Customized Reference Benchmark | |
|---|---|---|---|---|
Jan 16 | $ | $ | $ | $ |
Feb 16 | $ | $ | $ | $ |
Mar 16 | $ | $ | $ | $ |
Apr 16 | $ | $ | $ | $ |
May 16 | $ | $ | $ | $ |
Jun 16 | $ | $ | $ | $ |
Jul 16 | $ | $ | $ | $ |
Aug 16 | $ | $ | $ | $ |
Sep 16 | $ | $ | $ | $ |
Oct 16 | $ | $ | $ | $ |
Nov 16 | $ | $ | $ | $ |
Dec 16 | $ | $ | $ | $ |
Jan 17 | $ | $ | $ | $ |
Feb 17 | $ | $ | $ | $ |
Mar 17 | $ | $ | $ | $ |
Apr 17 | $ | $ | $ | $ |
May 17 | $ | $ | $ | $ |
Jun 17 | $ | $ | $ | $ |
Jul 17 | $ | $ | $ | $ |
Aug 17 | $ | $ | $ | $ |
Sep 17 | $ | $ | $ | $ |
Oct 17 | $ | $ | $ | $ |
Nov 17 | $ | $ | $ | $ |
Dec 17 | $ | $ | $ | $ |
Jan 18 | $ | $ | $ | $ |
Feb 18 | $ | $ | $ | $ |
Mar 18 | $ | $ | $ | $ |
Apr 18 | $ | $ | $ | $ |
May 18 | $ | $ | $ | $ |
Jun 18 | $ | $ | $ | $ |
Jul 18 | $ | $ | $ | $ |
Aug 18 | $ | $ | $ | $ |
Sep 18 | $ | $ | $ | $ |
Oct 18 | $ | $ | $ | $ |
Nov 18 | $ | $ | $ | $ |
Dec 18 | $ | $ | $ | $ |
Jan 19 | $ | $ | $ | $ |
Feb 19 | $ | $ | $ | $ |
Mar 19 | $ | $ | $ | $ |
Apr 19 | $ | $ | $ | $ |
May 19 | $ | $ | $ | $ |
Jun 19 | $ | $ | $ | $ |
Jul 19 | $ | $ | $ | $ |
Aug 19 | $ | $ | $ | $ |
Sep 19 | $ | $ | $ | $ |
Oct 19 | $ | $ | $ | $ |
Nov 19 | $ | $ | $ | $ |
Dec 19 | $ | $ | $ | $ |
Jan 20 | $ | $ | $ | $ |
Feb 20 | $ | $ | $ | $ |
Mar 20 | $ | $ | $ | $ |
Apr 20 | $ | $ | $ | $ |
May 20 | $ | $ | $ | $ |
Jun 20 | $ | $ | $ | $ |
Jul 20 | $ | $ | $ | $ |
Aug 20 | $ | $ | $ | $ |
Sep 20 | $ | $ | $ | $ |
Oct 20 | $ | $ | $ | $ |
Nov 20 | $ | $ | $ | $ |
Dec 20 | $ | $ | $ | $ |
Jan 21 | $ | $ | $ | $ |
Feb 21 | $ | $ | $ | $ |
Mar 21 | $ | $ | $ | $ |
Apr 21 | $ | $ | $ | $ |
May 21 | $ | $ | $ | $ |
Jun 21 | $ | $ | $ | $ |
Jul 21 | $ | $ | $ | $ |
Aug 21 | $ | $ | $ | $ |
Sep 21 | $ | $ | $ | $ |
Oct 21 | $ | $ | $ | $ |
Nov 21 | $ | $ | $ | $ |
Dec 21 | $ | $ | $ | $ |
Jan 22 | $ | $ | $ | $ |
Feb 22 | $ | $ | $ | $ |
Mar 22 | $ | $ | $ | $ |
Apr 22 | $ | $ | $ | $ |
May 22 | $ | $ | $ | $ |
Jun 22 | $ | $ | $ | $ |
Jul 22 | $ | $ | $ | $ |
Aug 22 | $ | $ | $ | $ |
Sep 22 | $ | $ | $ | $ |
Oct 22 | $ | $ | $ | $ |
Nov 22 | $ | $ | $ | $ |
Dec 22 | $ | $ | $ | $ |
Jan 23 | $ | $ | $ | $ |
Feb 23 | $ | $ | $ | $ |
Mar 23 | $ | $ | $ | $ |
Apr 23 | $ | $ | $ | $ |
May 23 | $ | $ | $ | $ |
Jun 23 | $ | $ | $ | $ |
Jul 23 | $ | $ | $ | $ |
Aug 23 | $ | $ | $ | $ |
Sep 23 | $ | $ | $ | $ |
Oct 23 | $ | $ | $ | $ |
Nov 23 | $ | $ | $ | $ |
Dec 23 | $ | $ | $ | $ |
Jan 24 | $ | $ | $ | $ |
Feb 24 | $ | $ | $ | $ |
Mar 24 | $ | $ | $ | $ |
Apr 24 | $ | $ | $ | $ |
May 24 | $ | $ | $ | $ |
Jun 24 | $ | $ | $ | $ |
Jul 24 | $ | $ | $ | $ |
Aug 24 | $ | $ | $ | $ |
Sep 24 | $ | $ | $ | $ |
Oct 24 | $ | $ | $ | $ |
Nov 24 | $ | $ | $ | $ |
Dec 24 | $ | $ | $ | $ |
Jan 25 | $ | $ | $ | $ |
Feb 25 | $ | $ | $ | $ |
Mar 25 | $ | $ | $ | $ |
Apr 25 | $ | $ | $ | $ |
May 25 | $ | $ | $ | $ |
Jun 25 | $ | $ | $ | $ |
Jul 25 | $ | $ | $ | $ |
Aug 25 | $ | $ | $ | $ |
Sep 25 | $ | $ | $ | $ |
Oct 25 | $ | $ | $ | $ |
Nov 25 | $ | $ | $ | $ |
Dec 25 | $ | $ | $ | $ |
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
Average Annual Total Returns | 1 Year | 5 Years | 10 Years |
|---|---|---|---|
Investor C Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Investor C Shares (with sales charge)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | ( | ||
17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Key Fund statistics
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
|---|---|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund's returns shown prior to October 1, 2016 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name BlackRock Investment Grade Bond Portfolio.
The Customized Reference Benchmark is comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&P 500® Index (30%).
Performance shown prior to the Investor C Shares inception date of October 3, 2016 is that of Class K Shares (which have no distribution or service fees) and was restated to reflect Investor C Shares fees.
What did the Fund invest in?
(as of December 31, 2025)
Portfolio composition
Credit quality allocation
Investment Type | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Common Stocks........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Floating Rate Loan Interests........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Non-Agency Mortgage-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
U.S. Government Sponsored Agency Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Equity-Linked Notes........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Investment Companies........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Preferred Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
OtherFootnote Reference(b)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
Credit RatingFootnote Reference(c) | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
AAA/AaaFootnote Reference(d)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
AA/Aa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BBB/Baa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BB/Ba........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
B........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CCC/Caa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CC/Ca........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
C........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
N/R........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
| Footnote | Description |
Footnote(a) | Excludes short-term securities, short investments and options, if any. |
Footnote(b) | Ten largest investment types are presented. Additional investment types are found in Other. |
Footnote(c) | For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings, or Moody's Investors Service, Inc. 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. |
Footnote(d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa. |
Footnote(e) |
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund 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 Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
BMICX-12/25-AR
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name | Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
|---|---|---|
Class K Shares | $ |
How did the Fund perform last year?
For the reporting period ended December 31, 2025, the Fund's Class K Shares returned 9.91%.
For the same period, the Fund’s benchmark, the Bloomberg U.S. Aggregate Bond Index, returned 7.30% and the Customized Reference Benchmark, a blend of 70% Bloomberg U.S. Aggregate Bond Index and 30% S&P 500 Index, returned 10.52%.
What contributed to performance?
Income-generating assets delivered broadly positive returns in 2025. The Fund’s allocation to investment-grade corporate bonds was the largest contributor to absolute performance given the category’s high portfolio weighting and strong return. The Fund’s position in equities also contributed, led by U.S. dividend-paying stocks, covered call strategies (which involve the use of derivatives), and international equities.
Holdings in floating-rate loans, which were well supported by solid underlying credit fundamentals, their floating-rate characteristics, and continued investor demand for yield, further contributed. The Fund also benefited from its holdings in AAA rated collateralized loan obligations and agency mortgage-backed securities.
The Fund held derivatives during the year. It used U.S. Treasury futures to manage interest rate risk, which contributed to absolute returns. Its use of Euro Bund futures to manage European interest rate risk was beneficial, as well.
The Fund’s cash position was modestly elevated at the end of the period given attractive yields and the investment adviser’s desire to have cash available to deploy if asset prices decline. The cash position contributed to absolute returns in 2025.
What detracted from performance?
Currency management strategies, which involve the use of derivatives, detracted given the weakness in the U.S. dollar relative to many international currencies.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: January 1, 2016 through December 31, 2025
Initial Investment of $10,000
Class K Shares | Bloomberg U.S. Aggregate Bond Index | 17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index | Customized Reference Benchmark | |
|---|---|---|---|---|
Jan 16 | $ | $ | $ | $ |
Feb 16 | $ | $ | $ | $ |
Mar 16 | $ | $ | $ | $ |
Apr 16 | $ | $ | $ | $ |
May 16 | $ | $ | $ | $ |
Jun 16 | $ | $ | $ | $ |
Jul 16 | $ | $ | $ | $ |
Aug 16 | $ | $ | $ | $ |
Sep 16 | $ | $ | $ | $ |
Oct 16 | $ | $ | $ | $ |
Nov 16 | $ | $ | $ | $ |
Dec 16 | $ | $ | $ | $ |
Jan 17 | $ | $ | $ | $ |
Feb 17 | $ | $ | $ | $ |
Mar 17 | $ | $ | $ | $ |
Apr 17 | $ | $ | $ | $ |
May 17 | $ | $ | $ | $ |
Jun 17 | $ | $ | $ | $ |
Jul 17 | $ | $ | $ | $ |
Aug 17 | $ | $ | $ | $ |
Sep 17 | $ | $ | $ | $ |
Oct 17 | $ | $ | $ | $ |
Nov 17 | $ | $ | $ | $ |
Dec 17 | $ | $ | $ | $ |
Jan 18 | $ | $ | $ | $ |
Feb 18 | $ | $ | $ | $ |
Mar 18 | $ | $ | $ | $ |
Apr 18 | $ | $ | $ | $ |
May 18 | $ | $ | $ | $ |
Jun 18 | $ | $ | $ | $ |
Jul 18 | $ | $ | $ | $ |
Aug 18 | $ | $ | $ | $ |
Sep 18 | $ | $ | $ | $ |
Oct 18 | $ | $ | $ | $ |
Nov 18 | $ | $ | $ | $ |
Dec 18 | $ | $ | $ | $ |
Jan 19 | $ | $ | $ | $ |
Feb 19 | $ | $ | $ | $ |
Mar 19 | $ | $ | $ | $ |
Apr 19 | $ | $ | $ | $ |
May 19 | $ | $ | $ | $ |
Jun 19 | $ | $ | $ | $ |
Jul 19 | $ | $ | $ | $ |
Aug 19 | $ | $ | $ | $ |
Sep 19 | $ | $ | $ | $ |
Oct 19 | $ | $ | $ | $ |
Nov 19 | $ | $ | $ | $ |
Dec 19 | $ | $ | $ | $ |
Jan 20 | $ | $ | $ | $ |
Feb 20 | $ | $ | $ | $ |
Mar 20 | $ | $ | $ | $ |
Apr 20 | $ | $ | $ | $ |
May 20 | $ | $ | $ | $ |
Jun 20 | $ | $ | $ | $ |
Jul 20 | $ | $ | $ | $ |
Aug 20 | $ | $ | $ | $ |
Sep 20 | $ | $ | $ | $ |
Oct 20 | $ | $ | $ | $ |
Nov 20 | $ | $ | $ | $ |
Dec 20 | $ | $ | $ | $ |
Jan 21 | $ | $ | $ | $ |
Feb 21 | $ | $ | $ | $ |
Mar 21 | $ | $ | $ | $ |
Apr 21 | $ | $ | $ | $ |
May 21 | $ | $ | $ | $ |
Jun 21 | $ | $ | $ | $ |
Jul 21 | $ | $ | $ | $ |
Aug 21 | $ | $ | $ | $ |
Sep 21 | $ | $ | $ | $ |
Oct 21 | $ | $ | $ | $ |
Nov 21 | $ | $ | $ | $ |
Dec 21 | $ | $ | $ | $ |
Jan 22 | $ | $ | $ | $ |
Feb 22 | $ | $ | $ | $ |
Mar 22 | $ | $ | $ | $ |
Apr 22 | $ | $ | $ | $ |
May 22 | $ | $ | $ | $ |
Jun 22 | $ | $ | $ | $ |
Jul 22 | $ | $ | $ | $ |
Aug 22 | $ | $ | $ | $ |
Sep 22 | $ | $ | $ | $ |
Oct 22 | $ | $ | $ | $ |
Nov 22 | $ | $ | $ | $ |
Dec 22 | $ | $ | $ | $ |
Jan 23 | $ | $ | $ | $ |
Feb 23 | $ | $ | $ | $ |
Mar 23 | $ | $ | $ | $ |
Apr 23 | $ | $ | $ | $ |
May 23 | $ | $ | $ | $ |
Jun 23 | $ | $ | $ | $ |
Jul 23 | $ | $ | $ | $ |
Aug 23 | $ | $ | $ | $ |
Sep 23 | $ | $ | $ | $ |
Oct 23 | $ | $ | $ | $ |
Nov 23 | $ | $ | $ | $ |
Dec 23 | $ | $ | $ | $ |
Jan 24 | $ | $ | $ | $ |
Feb 24 | $ | $ | $ | $ |
Mar 24 | $ | $ | $ | $ |
Apr 24 | $ | $ | $ | $ |
May 24 | $ | $ | $ | $ |
Jun 24 | $ | $ | $ | $ |
Jul 24 | $ | $ | $ | $ |
Aug 24 | $ | $ | $ | $ |
Sep 24 | $ | $ | $ | $ |
Oct 24 | $ | $ | $ | $ |
Nov 24 | $ | $ | $ | $ |
Dec 24 | $ | $ | $ | $ |
Jan 25 | $ | $ | $ | $ |
Feb 25 | $ | $ | $ | $ |
Mar 25 | $ | $ | $ | $ |
Apr 25 | $ | $ | $ | $ |
May 25 | $ | $ | $ | $ |
Jun 25 | $ | $ | $ | $ |
Jul 25 | $ | $ | $ | $ |
Aug 25 | $ | $ | $ | $ |
Sep 25 | $ | $ | $ | $ |
Oct 25 | $ | $ | $ | $ |
Nov 25 | $ | $ | $ | $ |
Dec 25 | $ | $ | $ | $ |
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
Average Annual Total Returns | 1 Year | 5 Years | 10 Years |
|---|---|---|---|
Class K Shares ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Bloomberg U.S. Aggregate Bond Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | ( | ||
17.50% MSCI World High Yield Dividend Index (Net) / 60.00% Bloomberg U.S. Aggregate Bond Index / 22.50% Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |||
Key Fund statistics
Net Assets........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
|---|---|
Number of Portfolio Holdings........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Net Investment Advisory Fees........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | $ |
Portfolio Turnover Rate........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
The Fund's returns shown prior to October 1, 2016 are the returns of the Fund when it followed a different investment objective and different investment strategies under the name BlackRock Investment Grade Bond Portfolio.
The Customized Reference Benchmark is comprised of the returns of the Bloomberg U.S. Aggregate Bond Index (70%) and the S&P 500® Index (30%).
What did the Fund invest in?
(as of December 31, 2025)
Portfolio composition
Credit quality allocation
Investment Type | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
Corporate Bonds........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Asset-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Common Stocks........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Floating Rate Loan Interests........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Non-Agency Mortgage-Backed Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
U.S. Government Sponsored Agency Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Equity-Linked Notes........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Investment Companies........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Preferred Securities........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
Foreign Agency Obligations........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
OtherFootnote Reference(b)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
Credit RatingFootnote Reference(c) | Percent of Total InvestmentsFootnote Reference(a) |
|---|---|
AAA/AaaFootnote Reference(d)........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
AA/Aa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
A........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BBB/Baa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
BB/Ba........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
B........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CCC/Caa........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
CC/Ca........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
C........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ | |
N/R........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................................ |
| Footnote | Description |
Footnote(a) | Excludes short-term securities, short investments and options, if any. |
Footnote(b) | Ten largest investment types are presented. Additional investment types are found in Other. |
Footnote(c) | For purposes of this report, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings, or Moody's Investors Service, Inc. 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. |
Footnote(d) | The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa. |
Footnote(e) |
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
Householding
The Fund 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 Fund at (800) 441-7762.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
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BLDRX-12/25-AR