UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number: 811-22061

Name of Fund:  BlackRock Funds II

BlackRock Managed Income Fund

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

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

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

Date of fiscal year end: 12/31/2021

Date of reporting period: 12/31/2021

Item 1 – Report to Stockholders

(a)

The Report to Shareholders is attached herewith.

(b)

Not Applicable

December

31,

2021

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2021

Annual

Report

BlackRock

Funds

II

BlackRock

Managed

Income

Fund

Dear

Shareholder,

The

12-month

reporting

period

as

of

December

31,

2021

saw

a

continuation

of

the

resurgent

growth

that

followed

the

initial

coronavirus

(or

“COVID-19”)

pandemic

reopening,

albeit

at

a

slower

pace.

The

global

economy

weathered

the

emergence

of

several

variant

strains

and

the

resulting

peaks

and

troughs

in

infections

amid

optimism

that

increasing

vaccinations

and

economic

adaptation

could

help

contain

the

pandemic’s

disruptions.

Continued

growth

meant

that

the

U.S.

economy

regained

and

then

surpassed

its

pre-pandemic

output.

However,

a

rapid

rebound

in

consumer

spending

pushed

up

against

supply

constraints

and

led

to

elevated

inflation.

Equity

prices

rose

with

the

broader

economy,

as

the

implementation

of

mass

vaccination

campaigns

and

passage

of

an

additional

fiscal

stimulus

package

and

infrastructure

bill

further

boosted

stocks.

In

the

United

States,

both

large-

and

small-capitalization

stocks

posted

a

strong

advance,

and

many

equity

indices

neared

or

surpassed

all-time

highs

late

in

the

reporting

period.

International

equities

from

developed

markets

also

gained,

although

emerging

market

stocks

declined,

pressured

by

a

strengthening

U.S.

dollar.

The

10-year

U.S.

Treasury

yield

(which

is

inversely

related

to

bond

prices)

rose

during

the

reporting

period

as

the

economy

expanded

rapidly

and

inflation

reached

its

highest

annualized

reading

in

decades.

In

the

corporate

bond

market,

support

from

the

U.S.

Federal

Reserve

(the

“Fed”)

assuaged

credit

concerns

and

led

to

solid

returns

for

high-yield

corporate

bonds,

outpacing

investment-grade

corporate

bonds,

which

declined.

The

Fed

maintained

accommodative

monetary

policy

during

the

reporting

period

by

maintaining

near-zero

interest

rates

and

by

asserting

that

inflation

could

exceed

its

2%

target

for

a

sustained

period

without

triggering

a

rate

increase.

However,

the

Fed’s

tone

shifted

late

in

the

year,

as

it

reduced

its

bond-buying

program

and

used

its

market

guidance

to

raise

the

prospect

of

higher

rates

in

2022.

Looking

ahead,

we

believe

that

the

global

expansion

will

continue

to

broaden

as

Europe

and

other

developed

market

economies

gain

momentum,

although

the

Delta

and

Omicron

variants

of

the

coronavirus

remain

a

threat,

particularly

in

emerging

markets.

While

we

expect

inflation

to

abate

somewhat

as

supply

bottlenecks

are

resolved,

we

anticipate

that

inflation

will

remain

higher

than

the

pre-COVID

norm.

The

Fed

is

poised

to

raise

interest

rates

next

year

in

response,

but

the

Fed’s

policy

shift

means

that

tightening

is

likely

to

be

less

aggressive

than

what

we’ve

seen

in

previous

cycles.

In

this

environment,

we

favor

an

overweight

to

equities,

as

we

believe

low

interest

rates

and

continued

economic

growth

will

support

further

gains,

albeit

likely

more

modest

than

what

we

saw

in

2021.

Sectors

that

are

better

poised

to

manage

the

transition

to

a

lower-carbon

world,

such

as

technology

and

health

care,

are

particularly

attractive

in

the

long

term.

U.S.

and

other

developed-market

equities

have

room

for

further

growth,

while

we

believe

Chinese

equities

stand

to

gain

from

a

more

accommodative

monetary

and

fiscal

environment

as

the

Chinese

economy

slows.

We

are

underweight

long-term

credit,

but

inflation-protected

U.S.

Treasuries,

Asian

fixed

income,

and

emerging

market

local-currency

bonds

offer

potential

opportunities.

We

believe

that

international

diversification

and

a

focus

on

sustainability

can

help

provide

portfolio

resilience,

and

the

disruption

created

by

the

coronavirus

appears

to

be

accelerating

the

shift

toward

sustainable

investments.

In

this

environment,

our

view

is

that

investors

need

to

think

globally,

extend

their

scope

across

a

broad

array

of

asset

classes,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackrock.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

December

31,

2021

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

11.67%

28.71%

U.S.

small

cap

equities

(Russell

2000

®

Index)

(2.31)

14.82

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

2.24

11.26

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

(9.30)

(2.54)

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

0.02

0.05

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

0.44

(3.68)

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

0.06

(1.54)

Tax-exempt

municipal

bonds

(S&P

Municipal

Bond

Index)

0.52

1.77

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

1.59

5.26

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

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

2

Annual

Report:

Fund

Summary

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

4

About

Fund

Performance

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

7

Disclosure

of

Expenses

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

7

Derivative

Financial

Instruments

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

8

Financial

Statements:

Schedule

of

Investments

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

9

Statement

of

Assets

and

Liabilities

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

53

Statement

of

Operations

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

55

Statements

of

Changes

in

Net

Assets

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

56

Financial

Highlights

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

57

Notes

to

Financial

Statements

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

61

Report

of

Independent

Registered

Public

Accounting

Firm

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

74

Important

Tax

Information

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

75

Statement

Regarding

Liquidity

Risk

Management

Program

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

76

Trustee

and

Officer

Information

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

77

Additional

Information

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

81

Glossary

of

Terms

Used

in

this

Report

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

83

Fund

Summary

as

of

December

31,

2021

2021

BlackRock

Annual

Report

to

Shareholders

4

BlackRock

Managed

Income

Fund

Investment

Objective

BlackRock

Managed

Income

Fund’s

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

current

income

with

consideration

for

risk-managed

total

return.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

December

31,

2021,

the

Fund

underperformed

its

Customized

Reference

Benchmark,

a

blend

of

30%

S&P

500

®

Index/70%

Bloomberg

U.S.

Aggregate

Bond

Index.

For

the

same

period,

the

Fund

outperformed

the

Bloomberg

U.S.

Aggregate

Bond

Index.

Performance

is

reviewed

on

an

absolute

basis

due

to

the

nature

of

the

Fund’s

strategy.

The

Fund

is

managed

within

a

risk-controlled

framework,

and

it

strives

to

maintain

a

consistent

yield

with

a

risk

profile

below

that

of

the

benchmark.

What

factors

influenced

performance?

The

Fund’s

positions

in

higher-quality

investments

were

the

primary

reason

for

underperformance

in

a

year

characterized

by

a

strong,

sustained

rally

in

risk

assets.

Investment-grade

bonds

and

agency

mortgage-backed

securities,

which

the

Fund

held

for

the

purposes

of

diversification

and

risk

mitigation,

were

the

largest

detractors.

The

Fund’s

allocation

to

equities

was

the

leading

contributor

to

performance.

Most

notably,

U.S.

equities,

covered

calls,

and

developed-market

international

stocks

aided

results.

(Covered

calls

involve

the

use

of

derivatives

and

are

intended

as

an

alternative

source

of

income.)

U.S.

high

yield

and

floating

rate

loan

interests

(“bank

loans”)

also

contributed,

although

to

a

lesser

extent

than

equities.

Holdings

in

preferred

stocks

and

a

diversified

securitized

debt

fund

added

value,

as

well.

The

Fund

used

derivatives

to

manage

duration

risk.

This

strategy

helped

performance,

as

yields

moved

higher

due

to

the

strong

economic

backdrop

and

expectations

for

an

eventual

change

in

monetary

policy.

The

Fund's

practice

of

maintaining

a

specified

level

of

monthly

distributions

to

shareholders

did

not

have

a

material

impact

on

the

Fund's

investment

strategy.

The

distribution

policy

did

not

result

in

return

of

capital

for

the

period.

Refer

to

the

financial

highlights

and

income

tax

information

sections

in

this

report

for

further

information

about

the

distributions.

Describe

recent

portfolio

activity.

The

Fund

maintained

a

pro-risk

stance

over

the

period,

with

its

equity

weighting

averaging

the

highest

level

since

the

strategy’s

inception

in

2016.

The

Fund

also

added

an

allocation

to

real

estate

investment

trusts

during

the

fourth

quarter

of

2021.

In

the

credit

markets,

the

Fund

added

to

floating

rate

bank

loans

and

reduced

its

weighting

in

lower

yielding,

more

richly

valued

areas

such

as

investment-grade

debt.

Although

the

investment

adviser

continued

to

favor

high

yield

bonds,

it

reduced

the

Fund’s

allocation

to

this

area

during

the

second

half

of

the

year

as

yields

became

less

attractive.

The

Fund

maintained

a

low

duration

profile

throughout

2021.

(Duration

is

a

measure

of

interest-rate

sensitivity.)

After

increasing

duration

modestly

early

in

the

year,

the

investment

adviser

reduced

duration

in

the

fourth

quarter

of

2021

after

the

bond

market

briefly

rallied

due

to

fears

about

the

Omicron

variant

of

COVID-19.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

diversified

across

several

income-producing

asset

classes

—

including

investment-grade

debt,

floating

rate

bank

loans,

high

yield

bonds,

global

equities,

covered

calls,

mortgage-backed

securities,

preferred

stocks

and

cash

—

and

it

continued

to

employ

risk-management

strategies.

The

Fund’s

duration

stood

at

approximately

1.8

years

at

the

end

of

the

period.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

December

31,

2021

(continued)

5

Fund

Summary

BlackRock

Managed

Income

Fund

Assuming

maximum

sales

charge,

if

any,

transaction

costs

and

other

operating

expenses,

including

investment

advisory

fees

and

administration

fees,

if

any.

Institutional

Shares

do

not

have

a

sales

charge.

TOTAL

RETURN

BASED

ON

A

$10,000

INVESTMENT

Performance

N/A

—

Not

applicable

as

share

class

and

Index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

(b)

The

Fund

may

invest

up

to

100%

of

its

assets

in

fixed-income

securities

and

up

to

30%

of

its

assets

in

equity

securities.

The

Fund’s

returns

between

July

29,

2013

and

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

Fund’s

returns

prior

to

July

29,

2013

are

the

returns

of

the

Fund

when

it

followed

different

investment

strategies

under

the

name

“BlackRock

Long

Duration

Bond

Portfolio”.

(c)

A

customized

performance

benchmark

comprised

of

the

returns

of

the

Bloomberg

U.S.

Aggregate

Bond

Index

(70%)

and

the

S&P

500

®

Index

(30%).

(d)

Bloomberg

U.S.

Aggregate

Bond

Index

(formerly

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index),

a

broad-based

flagship

benchmark

that

measures

the

investment

grade,

U.S.

dollar-

denominated,

fixed-rate

taxable

bond

market.

Average

Annual

Total

Returns

(a)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

3.04‌%

2.83‌%

5.61‌%

N/A‌

5.10‌%

N/A‌

4.53‌%

N/A‌

Investor

A

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

2.68‌

2.52‌

5.36‌

1.14‌%

4.84‌

3.98‌%

4.21‌

3.78‌%

Investor

C

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

2.05‌

1.87‌

4.50‌

3.50‌

4.04‌

4.04‌

3.45‌

3.45‌

Class

K

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

3.09‌

2.92‌

5.66‌

N/A‌

5.15‌

N/A‌

4.59‌

N/A‌

Bloomberg

U.S.

Aggregate

Bond

Index

.....

—‌

—‌

(1.54‌)

N/A‌

3.57‌

N/A‌

2.90‌

N/A‌

Customized

Reference

Benchmark

........

—‌

—‌

6.88‌

N/A‌

8.12‌

N/A‌

7.03‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees,

and

how

performance

was

calculated

for

certain

share

classes.

The

Fund’s

returns

between

July

29,

2013

and

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

Fund’s

returns

prior

to

July

29,

2013

are

the

returns

of

the

Fund

when

it

followed

different

investment

strategies

under

the

name

“BlackRock

Long

Duration

Bond

Portfolio”.

Fund

Summary

as

of

December

31,

2021

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

6

BlackRock

Managed

Income

Fund

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

Hypothetical

(a)

Beginning

Account

Value

(07/01/21)

Ending

Account

Value

(12/31/21)

Expenses

Paid

During

the

Period

(b)

Beginning

Account

Value

(07/01/21)

Ending

Account

Value

(12/31/21)

Expenses

Paid

During

the

Period

(b)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

1,020.60‌

$

2.04‌

$

1,000.00‌

$

1,023.19‌

$

2.04‌

0.40‌%

Investor

A

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

1,000.00‌

1,019.40‌

3.31‌

1,000.00‌

1,021.93‌

3.31‌

0.65‌

Investor

C

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

1,000.00‌

1,014.80‌

7.11‌

1,000.00‌

1,018.15‌

7.12‌

1.40‌

Class

K

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

1,000.00‌

1,019.90‌

1.78‌

1,000.00‌

1,023.44‌

1.79‌

0.35‌

(a)

Hypothetical

5%

annual

return

before

expenses

is

calculated

by

prorating

the

number

of

days

in

the

most

recent

fiscal

half

year

divided

by

365.

(b)

For

each

class

of

the

Fund,

expenses

are

equal

to

the

annualized

expense

ratio

for

the

class,

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/365

(to

reflect

the

six-month

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

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

41‌

%

Investment

Companies

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

20‌

Floating

Rate

Loan

Interests

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

14‌

Common

Stocks

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

9‌

Asset-Backed

Securities

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

8‌

Equity-Linked

Notes

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

6‌

Preferred

Securities

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

2‌

Foreign

Agency

Obligations

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

—‌

(b)

Warrants

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

—‌

(b)

(a)

Excludes

short-term

securities.

(b)

Represents

less

than

1%

of

the

Fund's

total

investments.

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(a)

Percent

of

Total

Investments

(b)

AAA/

Aaa

(c)

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

5‌

%

AA/Aa

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

4‌

A

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

16‌

BBB/Baa

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

23‌

BB/Ba

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

15‌

B

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

20‌

CCC/

Caa

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

4‌

CC/Ca

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

—‌

(d)

NR

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

13‌

(a)

For

financial

reporting

purposes,

credit

quality

ratings

shown

above

reflect

the

highest

rating

assigned

by

either

S&P

Global

Ratings

or

Moody’s

Investors

Service

if

ratings

differ.

These

rating

agencies

are

independent,

nationally

recognized

statistical

rating

organizations

and

are

widely

used.

Investment

grade

ratings

are

credit

ratings

of

BBB/

Baa

or

higher.

Below

investment

grade

ratings

are

credit

ratings

of

BB/Ba

or

lower.

Investments

designated

NR

are

not

rated

by

either

rating

agency.

Unrated

investments

do

not

necessarily

indicate

low

credit

quality.

Credit

quality

ratings

are

subject

to

change.

(b)

Excludes

short-term

securities,

Equity-Linked

Notes

and

Investment

Companies.

(c)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

(d)

Represents

less

than

1%

of

the

Fund's

total

investments.

About

Fund

Performance

7

About

Fund

Performance

/

Disclosure

of

Expenses

Institutional

and

Class

K

Shares

are

not

subject

to

any

sales

charge.

These

shares

bear

no

ongoing

distribution

or

service

fees

and

are

available

only

to

certain

eligible

investors.

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of

4.00%

and

a

service

fee

of

0.25%

per

year

(but

no

distribution

fee).

Certain

redemptions

of

these

shares

may

be

subject

to

a

contingent

deferred

sales

charge

("CDSC")

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

These

shares

are

generally

available

through

financial

intermediaries

.

Investor

C

Shares

are

subject

to

a

1.00%

CDSC

if

redeemed

within

one

year

of

purchase.

In

addition,

these

shares

are

subject

to

a

distribution

fee

of

0.75%

per

year

and

a

service

fee

of

0.25%

per

year.

These

shares

are

generally

available

through

financial

intermediaries.

Investor

C

Shares

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.

These

shares

automatically

convert

to

Investor

A

Shares

after

approximately

eight

years.

Past

performance

is

not

an

indication

of

future

results.

Financial

markets

have

experienced

extreme

volatility

and

trading

in

many

instruments

has

been

disrupted.

These

circumstances

may

continue

for

an

extended

period

of

time

and

may

continue

to

affect

adversely

the

value

and

liquidity

of

the

Fund's

investments.

As

a

result,

current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Refer

to

blackrock.com 

to

obtain

performance

data

current

to

the

most

recent

month-end.

Performance

results

do

not

reflect

the

deduction

of

taxes

that

a

shareholder

would

pay

on

Fund

distributions

or

the

redemption

of

Fund

shares.

Figures

shown

in

the

performance

table(s) assume

reinvestment

of

all

distributions,

if

any,

at

net

asset

value

("NAV")

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

"Manager”),

the

Fund's

investment

adviser,

has

contractually

and/or

voluntarily

agreed

to

waive

and/or

reimburse

a

portion

of

the

Fund’s

expenses.

Without

such

waiver(s)

and/or

reimbursement(s),

the

Fund's

performance

would

have

been

lower.

With

respect

to

the

Fund's

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time.

With

respect

to

the

Fund's

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such

agreement.

See

the

Notes

to

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

Shareholders

of

the

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees, service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

example

shown

(which

is

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

(or

from

the

commencement

of

operations

if

less

than

6

months)

and

held

through

the

end

of

the

period)

is

intended

to

assist

shareholders

both

in

calculating

expenses

based

on

an

investment

in

the

Fund

and

in

comparing

these

expenses

with

similar

costs

of

investing

in

other

mutual

funds.

The

expense

example

provides

information

about

actual

account

values

and

actual

expenses.

Annualized

expense

ratios

reflect

contractual

and

voluntary

fee

waivers,

if

any.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their share

class

under

the

heading

entitled

“Expenses

Paid

During

the

Period.” 

The

expense

example

also

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses.

In

order

to

assist

shareholders

in

comparing

the

ongoing

expenses

of

investing

in

the

Fund

and

other

funds,

compare

the

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

shareholder

reports

of

other

funds. 

The

expenses

shown

in

the

expense

example

are

intended

to

highlight

shareholders’

ongoing

costs

only

and

do

not

reflect

transactional

expenses,

such

as

sales

charges,

if

any.

Therefore,

the

hypothetical

example is

useful

in

comparing

ongoing

expenses

only

and

will

not

help

shareholders

determine

the

relative

total

expenses

of

owning

different

funds.

If

these

transactional

expenses

were

included,

shareholder

expenses

would

have

been

higher.

Derivative

Financial

Instruments

2021

BlackRock

Annual

Report

to

Shareholders

8

The

Fund

may

invest

in

various

derivative

financial

instruments.

These

instruments

are

used

to

obtain

exposure

to

a

security,

commodity,

index,

market,

and/or

other

assets

without

owning

or

taking

physical

custody

of

securities,

commodities

and/or

other

referenced

assets

or

to

manage

market,

equity,

credit,

interest

rate,

foreign

currency

exchange

rate,

commodity

and/or

other

risks.

Derivative

financial

instruments

may

give

rise

to

a

form

of

economic

leverage

and

involve

risks,

including

the

imperfect

correlation

between

the

value

of

a

derivative

financial

instrument

and

the

underlying

asset,

possible

default

of

the

counterparty

to

the

transaction

or

illiquidity

of

the

instrument.

The

Fund’s

successful

use

of

a

derivative

financial

instrument

depends

on

the

investment

adviser’s

ability

to

predict

pertinent

market

movements

accurately,

which

cannot

be

assured.

The

use

of

these

instruments

may

result

in

losses

greater

than

if

they

had

not

been

used,

may

limit

the

amount

of

appreciation the

Fund

can

realize

on

an

investment

and/or

may

result

in

lower

distributions

paid

to

shareholders.

The

Fund’s

investments

in

these

instruments,

if

any,

are

discussed

in

detail

in

the

Notes

to

Financial

Statements.

BlackRock

Managed

Income

Fund

Schedule

of

Investments

9

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

—

7.5%

AIG

CLO

Ltd.

(a)(b)

Series

2021-2A,

Class

B,

(LIBOR

USD

3

Month

+

1.75%),

1.84%,

07/20/34

...

USD

1,000

$

999,994

Series

2021-2A,

Class

C,

(LIBOR

USD

3

Month

+

2.00%),

2.09%,

07/20/34

...

1,000

1,003,958

AIMCO

CLO

(a)(b)

Series

2015-AA,

Class

CR2,

(LIBOR

USD

3

Month

+

2.00%),

2.12%,

10/17/34

...

1,000

1,000,001

Series

2017-AA,

Class

AR,

(LIBOR

USD

3

Month

+

1.05%),

1.18%,

04/20/34

...

500

498,099

Aimco

CLO

12

Ltd.,

Series

2020-12A,

Class

B,

(LIBOR

USD

3

Month

+

1.55%),

1.67%,

01/17/32

(a)(b)

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

1,000

999,042

Aimco

CLO

15

Ltd.,

Series

2021-15A,

Class

C,

(LIBOR

USD

3

Month

+

1.95%),

2.04%,

10/17/34

(a)(b)

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

1,000

996,115

AMSR

Trust

(b)

Series

2020-SFR1,

Class

E,

3.22%,

04/17/37

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

1,000

1,005,192

Series

2020-SFR1,

Class

F,

3.57%,

04/17/37

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

1,000

1,000,455

Anchorage

Capital

CLO

Ltd.,

Series

2018-10A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.20%),

1.32%,

10/15/31

(a)(b)

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

500

499,999

Ares

XXXIR

CLO

Ltd.,

Series

2014-31RA,

Class

A2,

(LIBOR

USD

3

Month

+

1.30%),

1.47%,

05/24/30

(a)(b)

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

500

499,542

Ares

XXXVII

CLO

Ltd.,

Series

2015-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.17%),

1.29%,

10/15/30

(a)(b)

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

250

250,004

Ares

XXXVR

CLO

Ltd.,

Series

2015-35RA,

Class

A2,

(LIBOR

USD

3

Month

+

1.40%),

1.52%,

07/15/30

(a)(b)

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

1,000

999,295

Assurant

CLO

Ltd.,

Series

2019-5A,

Class

A1,

(LIBOR

USD

3

Month

+

1.39%),

1.51%,

01/15/33

(a)(b)

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

1,500

1,500,770

Bardot

CLO

Ltd.,

Series

2019-2A,

Class

CR,

(LIBOR

USD

3

Month

+

1.90%),

2.03%,

10/22/32

(a)(b)

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

1,000

1,000,000

Battalion

CLO

XX

Ltd.,

Series

2021-20A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

1.32%,

07/15/34

(a)(b)

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

500

500,476

Battalion

CLO

XXII

Ltd.,

Series

2021-22A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

1.30%,

01/20/35

(a)(b)

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

1,000

1,001,247

Bayview

Financial

Revolving

Asset

Trust,

Series

2005-A,

Class

A1,

(LIBOR

USD

1

Month

+

1.00%),

1.10%,

02/28/40

(a)(b)

...

759

733,750

Benefit

Street

Partners

CLO

VIII

Ltd.,

Series

2015-8A,

Class

A1AR,

(LIBOR

USD

3

Month

+

1.10%),

1.23%,

01/20/31

(a)(b)

...

500

499,874

Buckhorn

Park

CLO

Ltd.

(a)(b)

Series

2019-1A,

Class

B1R,

(LIBOR

USD

3

Month

+

1.65%),

1.77%,

07/18/34

...

1,000

1,001,546

Series

2019-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.00%),

2.12%,

07/18/34

...

500

498,105

Canyon

CLO

Ltd.,

Series

2020-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.19%),

1.31%,

10/15/34

(a)(b)

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

1,000

1,000,000

CBAM

Ltd.,

Series

2020-13A,

Class

A,

(LIBOR

USD

3

Month

+

1.43%),

1.56%,

01/20/34

(a)(b)

1,000

1,002,985

CIFC

Funding

Ltd.

(a)(b)

Series

2013-4A,

Class

A2RR,

(LIBOR

USD

3

Month

+

1.30%),

1.43%,

04/27/31

..

650

649,450

Series

2017-3A,

Class

A1,

(LIBOR

USD

3

Month

+

1.22%),

1.35%,

07/20/30

...

1,850

1,850,078

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2018-4A,

Class

B,

(LIBOR

USD

3

Month

+

2.10%),

2.22%,

10/17/31

...

USD

500

$

497,242

Series

2021-1A,

Class

C,

(LIBOR

USD

3

Month

+

1.80%),

1.92%,

04/25/33

...

1,000

991,198

Dryden

49

Senior

Loan

Fund,

Series

2017-49A,

Class

CR,

(LIBOR

USD

3

Month

+

2.05%),

2.17%,

07/18/30

(a)(b)

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

500

500,041

Dryden

83

CLO

Ltd.,

Series

2020-83A,

Class

A,

(LIBOR

USD

3

Month

+

1.22%),

1.34%,

01/18/32

(a)(b)

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

1,000

1,000,164

Dryden

Senior

Loan

Fund,

Series

2017-47A,

Class

CR,

(LIBOR

USD

3

Month

+

2.05%),

2.17%,

04/15/28

(a)(b)

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

500

500,040

Dryden

XXVI

Senior

Loan

Fund,

Series

2013-

26A,

Class

CR,

(LIBOR

USD

3

Month

+

1.85%),

1.97%,

04/15/29

(a)(b)

.........

500

499,809

Eaton

Vance

CLO

Ltd.,

Series

2013-1A,

Class

B3R,

(LIBOR

USD

3

Month

+

2.15%),

2.27%,

01/15/34

(a)(b)

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

1,000

1,000,544

Elevation

CLO

Ltd.,

Series

2017-8A,

Class

C,

(LIBOR

USD

3

Month

+

2.05%),

2.17%,

10/25/30

(a)(b)

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

1,000

990,392

Elmwood

CLO

II

Ltd.,

Series

2019-2A,

Class

CR,

(LIBOR

USD

3

Month

+

2.00%),

2.13%,

04/20/34

(a)(b)

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

700

694,805

First

Franklin

Mortgage

Loan

Trust,

Series

2005-FF10,

Class

A6M,

(LIBOR

USD

1

Month

+

0.70%),

0.80%,

11/25/35

(a)

.....

765

747,654

Flatiron

CLO

17

Ltd.,

Series

2017-1A,

Class

CR,

(LIBOR

USD

3

Month

+

1.90%),

2.06%,

05/15/30

(a)(b)

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

400

399,819

Galaxy

XXII

CLO

Ltd.

(a)(b)

Series

2016-22A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.20%),

1.32%,

04/16/34

..

750

750,375

Series

2016-22A,

Class

BRR,

(LIBOR

USD

3

Month

+

1.70%),

1.82%,

04/16/34

..

500

500,339

Generate

CLO

9

Ltd.

(a)(b)

Series

9A,

Class

A,

(LIBOR

USD

3

Month

+

1.20%),

1.34%,

10/20/34

.........

1,000

999,993

Series

9A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

1.96%,

10/20/34

.........

1,500

1,499,978

Series

9A,

Class

C,

(LIBOR

USD

3

Month

+

2.25%),

2.39%,

10/20/34

.........

1,000

999,976

Gilbert

Park

CLO

Ltd.,

Series

2017-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.19%),

1.31%,

10/15/30

(a)(b)

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

750

750,043

GoldenTree

Loan

Management

US

CLO

1

Ltd.,

Series

2017-1A,

Class

CR2,

(LIBOR

USD

3

Month

+

1.80%),

1.93%,

04/20/34

(a)(b)

...

1,500

1,483,655

Golub

Capital

Partners

CLO

53B

Ltd.,

Series

2021-53A,

Class

B,

(LIBOR

USD

3

Month

+

1.80%),

1.93%,

07/20/34

(a)(b)

.........

1,000

999,989

Greywolf

CLO

II

Ltd.,

Series

2013-1A,

Class

A2AR,

(LIBOR

USD

3

Month

+

1.60%),

1.72%,

04/15/34

(a)(b)

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

300

299,975

Greywolf

CLO

VII

Ltd.,

Series

2018-2A,

Class

A1,

(LIBOR

USD

3

Month

+

1.18%),

1.31%,

10/20/31

(a)(b)

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

500

499,842

Gulf

Stream

Meridian

4

Ltd.,

Series

2021-4A,

Class

A1,

(LIBOR

USD

3

Month

+

1.20%),

1.32%,

07/15/34

(a)(b)

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

1,000

1,000,170

Halsey

Point

CLO

4

Ltd.,

Series

2021-4A,

Class

A,

(LIBOR

USD

3

Month

+

1.22%),

1.35%,

04/20/34

(a)(b)

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

500

500,640

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

10

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Highbridge

Loan

Management

Ltd.,

Series

12A-18,

Class

A2,

(LIBOR

USD

3

Month

+

1.50%),

1.62%,

07/18/31

(a)(b)

.........

USD

500

$

498,809

Invesco

CLO

Ltd.,

Series

2021-2A,

Class

A,

(LIBOR

USD

3

Month

+

1.12%),

1.24%,

07/15/34

(a)(b)

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

1,000

998,628

Kayne

CLO

III

Ltd.,

Series

2019-3A,

Class

A,

(LIBOR

USD

3

Month

+

1.48%),

1.60%,

04/15/32

(a)(b)

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

1,000

1,001,774

Milos

CLO

Ltd.,

Series

2017-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.55%),

1.68%,

10/20/30

(a)(b)

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

1,000

997,784

Neuberger

Berman

Loan

Advisers

CLO

26

Ltd.,

Series

2017-26A,

Class

C,

(LIBOR

USD

3

Month

+

1.75%),

1.87%,

10/18/30

(a)(b)

...

1,000

997,538

OCP

CLO

Ltd.,

Series

2021-22A,

Class

C,

(LIBOR

USD

3

Month

+

2.05%),

2.17%,

12/02/34

(a)(b)

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

500

499,995

Octagon

Investment

Partners

26

Ltd.,

Series

2016-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.60%),

1.72%,

07/15/30

(a)(b)

.........

500

497,821

Octagon

Investment

Partners

41

Ltd.

(a)(b)

Series

2019-2A,

Class

B1R,

(LIBOR

USD

3

Month

+

1.70%),

1.82%,

10/15/33

...

1,500

1,500,000

Series

2019-2A,

Class

CR,

(LIBOR

USD

3

Month

+

2.15%),

2.27%,

10/15/33

...

1,000

1,000,000

Octagon

Investment

Partners

45

Ltd.,

Series

2019-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.33%),

1.45%,

10/15/32

(a)(b)

.........

500

500,069

OHA

Loan

Funding

Ltd.,

Series

2013-1A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.60%),

1.72%,

07/23/31

(a)(b)

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

1,000

997,553

Palmer

Square

CLO

Ltd.

(a)(b)

Series

2019-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.15%),

1.34%,

11/14/34

(c)

..

1,000

1,000,000

Series

2019-1A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.70%),

1.89%,

11/14/34

(c)

..

1,000

1,000,000

Series

2021-2A,

Class

C,

(LIBOR

USD

3

Month

+

1.80%),

1.92%,

07/15/34

...

1,000

988,572

Park

Avenue

Institutional

Advisers

CLO

Ltd.,

Series

2021-2A,

Class

C,

(LIBOR

USD

3

Month

+

2.25%),

2.35%,

07/15/34

(a)(b)

...

1,000

996,900

Pikes

Peak

CLO

6

(a)(b)

Series

2020-6A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.17%),

1.33%,

05/18/34

...

500

499,458

Series

2020-6A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.70%),

1.86%,

05/18/34

...

500

498,282

Pikes

Peak

CLO

8,

Series

2021-8A,

Class

B,

(LIBOR

USD

3

Month

+

1.75%),

1.90%,

07/20/34

(a)(b)

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

500

499,995

PPM

CLO

4

Ltd.,

Series

2020-4A,

Class

CR,

(LIBOR

USD

3

Month

+

2.10%),

2.26%,

10/18/34

(a)(b)

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

750

750,000

Progress

Residential

Trust

(b)

Series

2020-SFR1,

Class

F,

3.43%,

04/17/37

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

1,000

1,001,541

Series

2020-SFR2,

Class

A,

2.08%,

06/17/37

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

1,000

1,003,491

Series

2020-SFR2,

Class

B,

2.58%,

06/17/37

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

1,000

1,004,026

Prudential

plc,

Series

2021-5A,

Class

A,

(LIBOR

USD

3

Month

+

1.20%),

1.32%,

10/18/34

(a)(b)

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

1,500

1,500,000

Rad

CLO

12

Ltd.,

Series

2021-12A,

Class

C,

(LIBOR

USD

3

Month

+

2.05%),

2.19%,

10/30/34

(a)(b)

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

1,000

999,848

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Regatta

VIII

Funding

Ltd.,

Series

2017-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.25%),

1.37%,

10/17/30

(a)(b)

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

USD

500

$

500,034

Regatta

XI

Funding

Ltd.,

Series

2018-1A,

Class

B,

(LIBOR

USD

3

Month

+

1.65%),

1.77%,

07/17/31

(a)(b)

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

650

650,014

Regatta

XIV

Funding

Ltd.,

Series

2018-3A,

Class

A,

(LIBOR

USD

3

Month

+

1.19%),

1.31%,

10/25/31

(a)(b)

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

1,000

999,501

Regatta

XV

Funding

Ltd.,

Series

2018-4A,

Class

A2,

(LIBOR

USD

3

Month

+

1.85%),

1.97%,

10/25/31

(a)(b)

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

700

700,211

Rockford

Tower

CLO

Ltd.

(a)(b)

Series

2017-3A,

Class

C,

(LIBOR

USD

3

Month

+

1.80%),

1.93%,

10/20/30

...

1,000

997,573

Series

2019-2A,

Class

CR,

(LIBOR

USD

3

Month

+

2.00%),

2.16%,

08/20/32

...

500

499,701

Series

2021-3A,

Class

A1,

(LIBOR

USD

3

Month

+

1.18%),

1.31%,

10/20/34

...

1,250

1,250,101

Series

2021-3A,

Class

C,

(LIBOR

USD

3

Month

+

2.15%),

2.28%,

10/20/34

...

1,000

1,000,067

Signal

Peak

CLO

9

Ltd.,

Series

2021-9A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

1.80%,

07/21/34

(a)(b)

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

500

499,628

Sixth

Street

CLO

XIX

Ltd.,

Series

2021-19A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

1.84%,

07/20/34

(a)(b)

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

1,000

1,000,008

Sound

Point

CLO

XXIII,

Series

2019-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.17%),

1.29%,

07/15/34

(a)(b)

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

1,000

1,000,324

TCI-Flatiron

CLO

Ltd.,

Series

2018-1A,

Class

CR,

(LIBOR

USD

3

Month

+

1.75%),

1.88%,

01/29/32

(a)(b)

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

1,000

997,096

TCW

CLO

Ltd.,

Series

2021-1A,

Class

C,

(LIBOR

USD

3

Month

+

1.90%),

2.03%,

03/18/34

(a)(b)

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

500

490,743

TICP

CLO

VII

Ltd.,

Series

2017-7A,

Class

ASR,

(LIBOR

USD

3

Month

+

1.27%),

1.39%,

04/15/33

(a)(b)

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

1,300

1,300,977

Webster

Park

CLO

Ltd.,

Series

2015-1A,

Class

A1BR,

(LIBOR

USD

3

Month

+

1.35%),

1.48%,

07/20/30

(a)(b)

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

1,000

999,096

Total

Asset-Backed

Securities

—

7.5%

(Cost:

$73,174,416)

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

73,213,818

Shares

Shares

Common

Stocks

—

8.2%

Banks

—

0.5%

Bank

Rakyat

Indonesia

Persero

Tbk.

PT

...

2,986,700

859,949

Citizens

Financial

Group,

Inc.

..........

41,398

1,956,056

DBS

Group

Holdings

Ltd.

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

36,300

879,148

M&T

Bank

Corp.

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

10,524

1,616,276

5,311,429

Beverages

—

0.2%

Diageo

plc

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

43,847

2,397,382

Biotechnology

—

0.3%

AbbVie,

Inc.

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

20,899

2,829,725

Building

Products

—

0.0%

AZEK

Co.,

Inc.

(The)

(d)

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

54

2,497

Capital

Markets

—

0.3%

Intercontinental

Exchange,

Inc.

.........

18,072

2,471,707

BlackRock

Managed

Income

Fund

Schedule

of

Investments

11

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Shares

Shares

Value

Consumer

Finance

—

0.1%

Synchrony

Financial

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

26,283

$

1,219,268

Diversified

Telecommunication

Services

—

0.2%

TELUS

Corp.

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

91,557

2,156,198

Electric

Utilities

—

0.2%

EDP

-

Energias

de

Portugal

SA

.........

379,766

2,086,171

Electrical

Equipment

—

0.2%

Schneider

Electric

SE

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

7,886

1,550,353

Electronic

Equipment,

Instruments

&

Components

—

0.1%

TE

Connectivity

Ltd.

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

8,536

1,377,198

Energy

Equipment

&

Services

—

0.1%

Baker

Hughes

Co.

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

25,629

616,634

Equity

Real

Estate

Investment

Trusts

(REITs)

—

0.1%

American

Tower

Corp.

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

4,104

1,200,420

Food

&

Staples

Retailing

—

0.1%

Wal-Mart

de

Mexico

SAB

de

CV

.........

228,723

851,421

Gas

Utilities

—

0.1%

ENN

Energy

Holdings

Ltd.

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

48,300

910,538

Health

Care

Equipment

&

Supplies

—

0.2%

Medtronic

plc

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

21,608

2,235,348

Health

Care

Providers

&

Services

—

0.3%

UnitedHealth

Group,

Inc.

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

5,343

2,682,934

Household

Durables

—

0.1%

Taylor

Wimpey

plc

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

344,910

822,310

Household

Products

—

0.2%

Reckitt

Benckiser

Group

plc

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

20,398

1,755,934

Insurance

—

0.5%

Assurant,

Inc.

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

10,551

1,644,479

Progressive

Corp.

(The)

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

11,341

1,164,154

Prudential

plc

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

116,538

2,015,275

4,823,908

IT

Services

—

0.6%

Amadeus

IT

Group

SA

(d)

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

9,853

666,696

Fidelity

National

Information

Services,

Inc.

..

18,328

2,000,501

Paychex,

Inc.

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

6,291

858,722

Visa,

Inc.,

Class

A

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

10,020

2,171,434

5,697,353

Leisure

Products

—

0.2%

Hasbro,

Inc.

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

20,505

2,086,999

Machinery

—

0.2%

Otis

Worldwide

Corp.

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

20,355

1,772,310

Media

—

0.1%

Comcast

Corp.,

Class

A

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

28,761

1,447,541

Oil,

Gas

&

Consumable

Fuels

—

0.0%

California

Resources

Corp.

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

106

4,527

Energy

Transfer

LP

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

2,317

19,069

23,596

Personal

Products

—

0.4%

Estee

Lauder

Cos.,

Inc.

(The),

Class

A

....

3,674

1,360,115

Unilever

plc

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

40,646

2,180,515

3,540,630

Pharmaceuticals

—

0.7%

AstraZeneca

plc

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

17,397

2,031,438

Novo

Nordisk

A/S,

Class

B

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

23,023

2,586,078

Security

Shares

Shares

Value

Pharmaceuticals

(continued)

Sanofi

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

26,334

$

2,642,460

7,259,976

Professional

Services

—

0.3%

NMG,

Inc.

(d)

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

265

38,796

RELX

plc

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

80,571

2,616,124

2,654,920

Semiconductors

&

Semiconductor

Equipment

—

0.5%

MediaTek,

Inc.

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

20,000

858,190

Taiwan

Semiconductor

Manufacturing

Co.

Ltd.

99,000

2,189,979

Texas

Instruments,

Inc.

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

10,195

1,921,452

4,969,621

Software

—

0.5%

Intuit,

Inc.

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

2,173

1,397,717

Microsoft

Corp.

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

9,486

3,190,332

4,588,049

Technology

Hardware,

Storage

&

Peripherals

—

0.1%

Logitech

International

SA

(Registered)

.....

8,005

671,521

Textiles,

Apparel

&

Luxury

Goods

—

0.4%

EssilorLuxottica

SA

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

6,585

1,401,795

Kering

SA

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

2,056

1,649,636

LVMH

Moet

Hennessy

Louis

Vuitton

SE

....

1,382

1,142,132

4,193,563

Tobacco

—

0.1%

Philip

Morris

International,

Inc.

..........

14,515

1,378,925

Trading

Companies

&

Distributors

—

0.2%

Ferguson

plc

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

9,988

1,774,136

Wireless

Telecommunication

Services

—

0.1%

KDDI

Corp.

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

27,500

804,202

Total

Common

Stocks

—

8.2%

(Cost:

$70,039,327)

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

80,164,717

Par

(000)

Par

(000)

Corporate

Bonds

—

39.1%

Aerospace

&

Defense

—

0.7%

Bombardier,

Inc.

(b)

7.50%,

12/01/24

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

USD

84

87,518

7.50%,

03/15/25

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

10

10,187

7.13%,

06/15/26

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

275

285,288

7.88%,

04/15/27

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

75

77,783

6.00%,

02/15/28

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

145

145,439

7.45%,

05/01/34

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

100

122,500

Howmet

Aerospace,

Inc.,

5.13%,

10/01/24

.

2

2,155

Kratos

Defense

&

Security

Solutions,

Inc.,

6.50%,

11/30/25

(b)

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

177

181,867

L3Harris

Technologies,

Inc.

3.83%,

04/27/25

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

75

79,958

3.85%,

12/15/26

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

100

108,745

4.40%,

06/15/28

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

1,255

1,408,630

2.90%,

12/15/29

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

25

25,777

1.80%,

01/15/31

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

1,025

978,287

5.05%,

04/27/45

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

50

65,537

Rolls-Royce

plc,

5.75%,

10/15/27

(b)

......

400

442,360

Spirit

AeroSystems,

Inc.,

5.50%,

01/15/25

(b)

.

57

59,066

TransDigm,

Inc.

8.00%,

12/15/25

(b)

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

557

587,619

6.25%,

03/15/26

(b)

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

1,774

1,843,851

6.38%,

06/15/26

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

23

23,632

7.50%,

03/15/27

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

39

40,755

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

12

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Aerospace

&

Defense

(continued)

4.63%,

01/15/29

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

USD

88

$

87,708

4.88%,

05/01/29

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

104

104,447

Triumph

Group,

Inc.,

8.88%,

06/01/24

(b)

...

378

412,277

7,181,386

Air

Freight

&

Logistics

—

0.0%

FedEx

Corp.

3.10%,

08/05/29

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

40

42,262

4.25%,

05/15/30

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

150

170,566

4.55%,

04/01/46

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

195

233,675

5.25%,

05/15/50

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

25

33,445

479,948

Airlines

—

0.4%

Air

Canada,

3.88%,

08/15/26

(b)

.........

176

179,520

Air

Canada

Pass-Through

Trust,

Series

2017-1,

Class

AA,

3.30%,

01/15/30

(b)

........

15

15,479

American

Airlines

Pass-Through

Trust

Series

2019-1,

Class

B,

3.85%,

02/15/28

69

65,596

Series

2017-1,

Class

AA,

3.65%,

02/15/29

61

63,584

American

Airlines,

Inc.

(b)

11.75%,

07/15/25

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

363

447,851

5.50%,

04/20/26

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

171

177,309

5.75%,

04/20/29

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

479

512,061

British

Airways

Pass-Through

Trust,

Series

2019-1,

Class

A,

3.35%,

06/15/29

(b)

....

38

37,557

Delta

Air

Lines,

Inc.

3.80%,

04/19/23

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

100

102,242

7.00%,

05/01/25

(b)

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

59

67,461

4.75%,

10/20/28

(b)

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

242

264,260

Hawaiian

Brand

Intellectual

Property

Ltd.,

5.75%,

01/20/26

(b)

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

86

89,977

Mileage

Plus

Holdings

LLC,

6.50%,

06/20/27

(b)

253

270,078

Spirit

Loyalty

Cayman

Ltd.,

8.00%,

09/20/25

(b)

13

14,514

United

Airlines

Pass-Through

Trust

Series

2020-1,

Class

B,

4.88%,

01/15/26

31

32,722

Series

2020-1,

Class

A,

5.88%,

10/15/27

570

624,343

Series

2019-2,

Class

AA,

2.70%,

05/01/32

42

41,733

United

Airlines,

Inc.

(b)

4.38%,

04/15/26

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

173

180,393

4.63%,

04/15/29

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

232

239,250

3,425,930

Auto

Components

—

0.3%

Adient

US

LLC,

9.00%,

04/15/25

(b)

......

21

22,312

Allison

Transmission,

Inc.

(b)

5.88%,

06/01/29

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

210

228,375

3.75%,

01/30/31

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

92

89,700

Aptiv

plc

5.40%,

03/15/49

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

25

33,113

3.10%,

12/01/51

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

230

219,082

BorgWarner,

Inc.,

5.00%,

10/01/25

(b)

.....

100

111,811

Clarios

Global

LP

(b)

6.75%,

05/15/25

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

198

207,405

6.25%,

05/15/26

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

479

501,154

8.50%,

05/15/27

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

914

968,840

Dealer

Tire

LLC,

8.00%,

02/01/28

(b)

......

67

69,742

Dornoch

Debt

Merger

Sub,

Inc.,

6.63%,

10/15/29

(b)

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

42

41,475

Goodyear

Tire

&

Rubber

Co.

(The)

9.50%,

05/31/25

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

47

50,807

5.00%,

07/15/29

(b)

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

49

52,636

5.25%,

07/15/31

(b)

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

61

66,228

5.63%,

04/30/33

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

141

153,866

Icahn

Enterprises

LP

4.75%,

09/15/24

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

18

18,675

6.25%,

05/15/26

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

77

80,176

Security

Par

(000)

Par

(000)

Value

Auto

Components

(continued)

5.25%,

05/15/27

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

USD

247

$

254,022

4.38%,

02/01/29

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

63

61,425

Patrick

Industries,

Inc.,

4.75%,

05/01/29

(b)

..

24

23,880

Tenneco,

Inc.,

7.88%,

01/15/29

(b)

.......

18

19,440

3,274,164

Automobiles

—

0.8%

BMW

US

Capital

LLC,

1.25%,

08/12/26

(b)

..

60

59,042

Daimler

Finance

North

America

LLC

(b)

3.25%,

08/01/24

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

175

183,339

1.45%,

03/02/26

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

150

148,500

Ford

Motor

Co.

0.00%,

03/15/26

(b)(e)(f)

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

76

104,548

4.35%,

12/08/26

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

182

198,516

3.25%,

02/12/32

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

320

327,680

4.75%,

01/15/43

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

21

23,179

5.29%,

12/08/46

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

60

70,515

General

Motors

Co.

5.40%,

10/02/23

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

325

347,868

6.13%,

10/01/25

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

50

57,437

6.25%,

10/02/43

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

351

480,322

6.75%,

04/01/46

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

60

85,733

5.95%,

04/01/49

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

99

135,509

Hyundai

Capital

America

(b)

0.80%,

01/08/24

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

675

665,231

1.00%,

09/17/24

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

655

643,680

1.80%,

10/15/25

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

395

392,864

1.65%,

09/17/26

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

65

63,706

Nissan

Motor

Acceptance

Co.

LLC

(b)

3.88%,

09/21/23

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

78

81,139

2.00%,

03/09/26

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

400

394,004

2.75%,

03/09/28

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

130

129,067

2.45%,

09/15/28

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

115

111,770

Nissan

Motor

Co.

Ltd.

(b)

3.04%,

09/15/23

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

1,180

1,210,778

3.52%,

09/17/25

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

385

403,549

4.35%,

09/17/27

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

285

307,671

Stellantis

Finance

US,

Inc.,

1.71%,

01/29/27

(b)

200

196,584

Thor

Industries,

Inc.,

4.00%,

10/15/29

(b)

...

64

63,360

Volkswagen

Group

of

America

Finance

LLC

(b)

0.75%,

11/23/22

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

300

299,951

1.25%,

11/24/25

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

600

586,857

Winnebago

Industries,

Inc.,

6.25%,

07/15/28

(b)

38

40,688

7,813,087

Banks

—

6.2%

AIB

Group

plc,

(LIBOR

USD

3

Month

+

1.87%),

4.26%,

04/10/25

(a)(b)

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

675

710,788

Banco

Bilbao

Vizcaya

Argentaria

SA,

(USD

Swap

Semi

5

Year

+

3.87%),

6.13%

(a)(g)

..

800

845,000

Banco

Nacional

de

Panama,

2.50%,

08/11/30

(b)

300

280,837

Banco

Santander

SA

3.13%,

02/23/23

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

200

204,705

3.85%,

04/12/23

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

200

206,869

2.71%,

06/27/24

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

200

207,076

2.75%,

05/28/25

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

200

206,718

1.85%,

03/25/26

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

400

398,165

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%),

1.72%,

09/14/27

(a)

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

200

196,361

3.31%,

06/27/29

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

200

211,381

Bank

of

America

Corp.

(SOFR

+

0.41%),

0.52%,

06/14/24

(a)

...

715

710,255

(LIBOR

USD

3

Month

+

0.94%),

3.86%,

07/23/24

(a)

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

400

416,743

4.20%,

08/26/24

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

300

321,558

BlackRock

Managed

Income

Fund

Schedule

of

Investments

13

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

4.00%,

01/22/25

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

USD

250

$

266,997

(LIBOR

USD

3

Month

+

0.97%),

3.46%,

03/15/25

(a)

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

80

83,665

Series

L,

3.95%,

04/21/25

..........

473

505,590

(LIBOR

USD

3

Month

+

1.09%),

3.09%,

10/01/25

(a)

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

795

827,188

(LIBOR

USD

3

Month

+

0.87%),

2.46%,

10/22/25

(a)

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

225

231,089

(SOFR

+

0.65%),

1.53%,

12/06/25

(a)

...

60

60,098

(LIBOR

USD

3

Month

+

0.81%),

3.37%,

01/23/26

(a)

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

290

305,079

(LIBOR

USD

3

Month

+

0.64%),

2.01%,

02/13/26

(a)

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

300

303,861

4.45%,

03/03/26

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

312

343,499

(SOFR

+

1.15%),

1.32%,

06/19/26

(a)

...

140

138,513

4.25%,

10/22/26

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

91

100,409

(SOFR

+

1.01%),

1.20%,

10/24/26

(a)

...

100

98,004

Series

L,

4.18%,

11/25/27

..........

100

109,414

(LIBOR

USD

3

Month

+

1.51%),

3.71%,

04/24/28

(a)

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

150

162,785

(LIBOR

USD

3

Month

+

1.37%),

3.59%,

07/21/28

(a)

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

300

322,884

(LIBOR

USD

3

Month

+

1.04%),

3.42%,

12/20/28

(a)

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

875

934,207

(LIBOR

USD

3

Month

+

1.21%),

3.97%,

02/07/30

(a)

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

145

159,722

(LIBOR

USD

3

Month

+

1.18%),

3.19%,

07/23/30

(a)

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

300

316,377

(SOFR

+

2.15%),

2.59%,

04/29/31

(a)

...

295

298,002

(SOFR

+

1.32%),

2.69%,

04/22/32

(a)

...

420

426,227

Series

L,

4.75%,

04/21/45

..........

110

137,074

(LIBOR

USD

3

Month

+

3.15%),

4.08%,

03/20/51

(a)

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

440

529,244

(SOFR

+

1.88%),

2.83%,

10/24/51

(a)

...

105

103,088

Bank

of

Ireland

Group

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.10%),

2.03%,

09/30/27

(a)(b)

.......

520

510,674

Banque

Federative

du

Credit

Mutuel

SA,

2.13%,

11/21/22

(b)

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

200

202,774

Barclays

Bank

plc

(e)(f)

0.00%,

02/04/25

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

234

407,789

Series

VUN,

0.00%,

02/18/25

........

369

398,141

Barclays

plc

(USD

Swap

Semi

5

Year

+

6.77%),

7.88%

(a)

(g)(h)

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

525

530,906

3.68%,

01/10/23

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

200

200,093

(LIBOR

USD

3

Month

+

1.40%),

4.61%,

02/15/23

(a)

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

380

381,625

(USD

Swap

Semi

5

Year

+

4.84%),

7.75%

(a)

(g)

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

475

509,732

(LIBOR

USD

3

Month

+

1.36%),

4.34%,

05/16/24

(a)

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

255

265,449

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.80%),

1.01%,

12/10/24

(a)

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

200

198,541

(LIBOR

USD

3

Month

+

1.61%),

3.93%,

05/07/25

(a)

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

200

210,331

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.87%),

6.13%

(a)(g)

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

325

351,682

4.38%,

01/12/26

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

200

218,639

5.20%,

05/12/26

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

270

301,285

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.41%),

4.38%

(a)(g)

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

475

465,262

4.84%,

05/09/28

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

200

220,316

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(LIBOR

USD

3

Month

+

3.05%),

5.09%,

06/20/30

(a)

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

USD

400

$

453,733

BNP

Paribas

SA

4.25%,

10/15/24

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

200

215,691

3.38%,

01/09/25

(b)

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

200

209,999

(LIBOR

USD

3

Month

+

2.24%),

4.70%,

01/10/25

(a)(b)

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

200

212,922

(LIBOR

USD

3

Month

+

1.11%),

2.82%,

11/19/25

(a)(b)

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

200

205,829

(SOFR

+

1.00%),

1.32%,

01/13/27

(a)(b)

..

200

194,612

(USD

Swap

Semi

5

Year

+

3.98%),

7.00%

(a)

(b)(g)

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

200

234,090

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.34%),

4.62%

(a)(b)(g)

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

1,150

1,153,450

BofA

Finance

LLC,

0.13%,

09/01/22

(e)

....

262

293,702

Citigroup,

Inc.

(LIBOR

USD

3

Month

+

0.90%),

3.35%,

04/24/25

(a)

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

650

678,697

(SOFR

+

2.84%),

3.11%,

04/08/26

(a)

....

950

995,910

3.20%,

10/21/26

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

100

105,969

4.30%,

11/20/26

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

155

171,504

(SOFR

+

0.77%),

1.12%,

01/28/27

(a)

...

375

365,244

4.45%,

09/29/27

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

850

947,767

(LIBOR

USD

3

Month

+

1.56%),

3.89%,

01/10/28

(a)

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

70

75,892

(LIBOR

USD

3

Month

+

1.39%),

3.67%,

07/24/28

(a)

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

125

134,818

4.13%,

07/25/28

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

100

109,741

(LIBOR

USD

3

Month

+

1.15%),

3.52%,

10/27/28

(a)

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

125

134,085

(SOFR

+

1.42%),

2.98%,

11/05/30

(a)

....

250

259,614

(SOFR

+

3.91%),

4.41%,

03/31/31

(a)

...

200

228,412

(SOFR

+

2.11%),

2.57%,

06/03/31

(a)

....

595

600,146

(SOFR

+

1.17%),

2.56%,

05/01/32

(a)

...

190

190,985

(SOFR

+

1.38%),

2.90%,

11/03/42

(a)

....

130

128,717

Commonwealth

Bank

of

Australia,

1.13%,

06/15/26

(b)

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

115

112,822

Cooperatieve

Rabobank

UA

(a)(b)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.00%),

1.34%,

06/24/26

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

295

290,760

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.55%),

1.11%,

02/24/27

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

250

242,524

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.73%),

1.98%,

12/15/27

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

555

555,150

Credit

Agricole

SA

(a)(b)

(USD

Swap

Semi

5

Year

+

6.19%),

8.12%

(g)

1,225

1,450,706

(SOFR

+

0.89%),

1.25%,

01/26/27

.....

250

243,265

Danske

Bank

A/S

5.00%,

01/12/22

(b)

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

200

200,177

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.03%),

1.17%,

12/08/23

(a)(b)

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

485

484,888

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

4.13%),

7.00%

(a)(g)(h)

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

725

795,869

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.35%),

1.62%,

09/11/26

(a)(b)

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

200

197,038

Discover

Bank,

4.20%,

08/08/23

........

250

262,541

DNB

Bank

ASA,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.72%),

1.54%,

05/25/27

(a)(b)

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

200

197,158

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

14

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

HSBC

Holdings

plc

4.25%,

03/14/24

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

USD

225

$

237,582

(SOFR

+

0.53%),

0.73%,

08/17/24

(a)

...

555

550,085

(SOFR

+

0.58%),

1.16%,

11/22/24

(a)

....

200

199,407

(LIBOR

USD

3

Month

+

1.21%),

3.80%,

03/11/25

(a)

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

200

209,874

(SOFR

+

1.40%),

2.63%,

11/07/25

(a)

....

450

461,559

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%),

4.00%

(a)(g)

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

200

198,750

(SOFR

+

1.54%),

1.64%,

04/18/26

(a)

...

300

297,513

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.65%),

4.60%

(a)(g)

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

260

259,787

(SOFR

+

1.19%),

2.80%,

05/24/32

(a)

...

320

320,993

ING

Groep

NV

4.10%,

10/02/23

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

200

210,521

3.55%,

04/09/24

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

200

209,648

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.10%),

1.40%,

07/01/26

(a)(b)

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

400

395,772

(SOFR

+

1.01%),

1.73%,

04/01/27

(a)

...

200

198,656

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.86%),

3.88%

(a)(g)

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

860

818,075

Intesa

Sanpaolo

SpA

(b)

3.13%,

07/14/22

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

620

627,059

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.60%),

4.20%,

06/01/32

(a)

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

435

438,773

JPMorgan

Chase

&

Co.

(LIBOR

USD

3

Month

+

1.00%),

4.02%,

12/05/24

(a)

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

400

421,747

(SOFR

+

1.16%),

2.30%,

10/15/25

(a)

...

550

562,489

(SOFR

+

1.59%),

2.00%,

03/13/26

(a)

...

435

440,130

(SOFR

+

0.80%),

1.05%,

11/19/26

(a)

....

200

194,842

4.13%,

12/15/26

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

400

441,188

(SOFR

+

0.70%),

1.04%,

02/04/27

(a)

...

100

96,785

(SOFR

+

0.89%),

1.58%,

04/22/27

(a)

...

300

296,464

(SOFR

+

0.77%),

1.47%,

09/22/27

(a)

...

200

196,045

4.25%,

10/01/27

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

175

196,307

3.63%,

12/01/27

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

180

193,954

(LIBOR

USD

3

Month

+

1.34%),

3.78%,

02/01/28

(a)

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

490

530,441

(SOFR

+

1.02%),

2.07%,

06/01/29

(a)

...

225

223,123

(SOFR

+

2.52%),

2.96%,

05/13/31

(a)

...

100

103,537

(SOFR

+

1.25%),

2.58%,

04/22/32

(a)

...

355

359,562

6.40%,

05/15/38

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

60

87,297

(LIBOR

USD

3

Month

+

1.36%),

3.88%,

07/24/38

(a)

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

455

516,425

(SOFR

+

2.46%),

3.11%,

04/22/41

(a)

....

535

554,073

5.63%,

08/16/43

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

50

69,890

4.85%,

02/01/44

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

65

84,914

4.95%,

06/01/45

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

85

110,612

Series

W,

(LIBOR

USD

3

Month

+

1.00%),

1.16%,

05/15/47

(a)

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

117

98,350

Lloyds

Banking

Group

plc

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.10%),

1.33%,

06/15/23

(a)

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

200

200,336

4.05%,

08/16/23

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

510

534,328

4.50%,

11/04/24

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

200

215,467

4.45%,

05/08/25

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

400

434,495

(USD

Swap

Semi

5

Year

+

4.50%),

7.50%

(a)

(g)

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

200

226,043

4.58%,

12/10/25

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

540

589,050

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.00%),

2.44%,

02/05/26

(a)

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

USD

200

$

203,896

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.82%),

6.75%

(a)(g)

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

200

225,380

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.85%),

1.63%,

05/11/27

(a)

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

200

196,891

Mitsubishi

UFJ

Financial

Group,

Inc.

3.76%,

07/26/23

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

220

229,432

3.41%,

03/07/24

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

70

73,278

1.41%,

07/17/25

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

400

397,776

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.67%),

1.64%,

10/13/27

(a)

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

200

197,387

3.96%,

03/02/28

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

105

116,437

2.05%,

07/17/30

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

400

388,499

Mizuho

Financial

Group,

Inc.,

(SOFR

+

1.25%),

1.24%,

07/10/24

(a)

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

220

220,533

NatWest

Group

plc

3.88%,

09/12/23

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

650

677,785

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.15%),

2.36%,

05/22/24

(a)

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

380

386,066

(LIBOR

USD

3

Month

+

1.76%),

4.27%,

03/22/25

(a)

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

500

529,124

4.80%,

04/05/26

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

200

222,453

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.55%),

3.07%,

05/22/28

(a)

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

400

416,036

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.10%),

3.75%,

11/01/29

(a)

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

200

208,541

(LIBOR

USD

3

Month

+

1.91%),

5.08%,

01/27/30

(a)

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

200

231,958

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.35%),

3.03%,

11/28/35

(a)

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

400

394,675

Nordea

Bank

Abp

(b)

3.75%,

08/30/23

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

220

229,712

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.11%),

6.63%

(a)(g)

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

550

624,938

1.50%,

09/30/26

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

800

786,188

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.60%),

3.75%

(a)(g)

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

260

246,480

PNC

Financial

Services

Group,

Inc.

(The)

2.20%,

11/01/24

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

100

102,674

3.45%,

04/23/29

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

70

76,219

Royal

Bank

of

Canada,

2.25%,

11/01/24

...

170

174,499

Santander

UK

Group

Holdings

plc,

(LIBOR

USD

3

Month

+

1.57%),

4.80%,

11/15/24

(a)

200

212,272

Santander

UK

plc,

5.00%,

11/07/23

(b)

.....

487

517,920

Skandinaviska

Enskilda

Banken

AB

(b)

0.85%,

09/02/25

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

200

195,300

1.20%,

09/09/26

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

200

195,766

Societe

Generale

SA

(a)(b)

(USD

Swap

Rate

5

Year

+

5.87%),

8.00%

(g)

400

462,364

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.93%),

4.75%

(g)

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

685

695,556

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.00%),

1.79%,

06/09/27

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

325

318,043

BlackRock

Managed

Income

Fund

Schedule

of

Investments

15

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.51%),

5.38%

(g)

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

USD

400

$

420,160

Standard

Chartered

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.14%),

4.30%

(a)(b)(g)

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

400

385,000

Sumitomo

Mitsui

Financial

Group,

Inc.

2.45%,

09/27/24

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

250

257,110

2.35%,

01/15/25

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

200

204,931

1.40%,

09/17/26

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

200

195,211

3.54%,

01/17/28

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

100

107,896

3.94%,

07/19/28

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

100

110,731

2.75%,

01/15/30

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

250

255,860

Svenska

Handelsbanken

AB,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.63%),

1.42%,

06/11/27

(a)(b)

....

250

245,917

UniCredit

SpA

6.57%,

01/14/22

(b)

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

440

440,638

3.75%,

04/12/22

(b)

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

705

710,331

(USD

Swap

Semi

5

Year

+

5.18%),

8.00%

(a)

(g)(h)

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

400

437,000

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.20%),

1.98%,

06/03/27

(a)(b)

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

285

277,668

US

Bancorp,

1.38%,

07/22/30

.........

5

4,705

Wells

Fargo

&

Co.

3.75%,

01/24/24

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

700

734,971

3.00%,

02/19/25

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

210

219,241

(LIBOR

USD

3

Month

+

0.75%),

2.16%,

02/11/26

(a)

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

320

324,776

(LIBOR

USD

3

Month

+

0.50%),

0.62%,

01/15/27

(a)

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

20

19,390

4.30%,

07/22/27

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

131

145,951

(SOFR

+

2.10%),

2.39%,

06/02/28

(a)

...

150

152,449

4.15%,

01/24/29

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

75

83,956

(SOFR

+

1.43%),

2.88%,

10/30/30

(a)

...

75

77,969

5.61%,

01/15/44

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

50

67,658

4.40%,

06/14/46

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

360

426,654

4.75%,

12/07/46

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

100

124,805

(SOFR

+

4.50%),

5.01%,

04/04/51

(a)

...

225

307,245

Westpac

Banking

Corp.

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.75%),

2.67%,

11/15/35

(a)

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

135

131,510

3.13%,

11/18/41

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

85

84,243

61,107,140

Beverages

—

0.3%

Anheuser-Busch

Cos.

LLC

3.65%,

02/01/26

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

245

263,045

4.70%,

02/01/36

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

445

537,031

4.90%,

02/01/46

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

307

388,028

Anheuser-Busch

InBev

Finance,

Inc.

3.65%,

02/01/26

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

195

209,363

4.90%,

02/01/46

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

115

144,369

Anheuser-Busch

InBev

Worldwide,

Inc.

4.75%,

01/23/29

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

140

162,951

4.95%,

01/15/42

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

25

31,358

4.44%,

10/06/48

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

55

65,737

5.55%,

01/23/49

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

70

96,842

4.50%,

06/01/50

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

205

252,728

4.75%,

04/15/58

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

320

395,637

5.80%,

01/23/59

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

105

151,814

Fomento

Economico

Mexicano

SAB

de

CV,

3.50%,

01/16/50

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

150

156,281

Keurig

Dr

Pepper,

Inc.,

4.42%,

05/25/25

...

130

141,436

Security

Par

(000)

Par

(000)

Value

Beverages

(continued)

Triton

Water

Holdings,

Inc.,

6.25%,

04/01/29

(b)

USD

42

$

40,282

3,036,902

Biotechnology

—

0.5%

AbbVie,

Inc.

2.60%,

11/21/24

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

100

103,763

3.80%,

03/15/25

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

965

1,027,220

3.60%,

05/14/25

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

465

494,492

3.20%,

05/14/26

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

225

238,529

2.95%,

11/21/26

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

145

152,811

4.50%,

05/14/35

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

405

484,470

4.05%,

11/21/39

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

115

131,943

4.75%,

03/15/45

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

100

124,728

4.45%,

05/14/46

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

155

187,446

4.88%,

11/14/48

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

150

193,829

4.25%,

11/21/49

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

357

429,175

Amgen,

Inc.

2.00%,

01/15/32

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

120

116,198

4.56%,

06/15/48

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

35

43,386

4.66%,

06/15/51

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

25

31,981

Baxalta,

Inc.,

3.60%,

06/23/22

.........

9

9,076

Gilead

Sciences,

Inc.

3.70%,

04/01/24

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

100

105,118

3.50%,

02/01/25

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

185

195,570

3.65%,

03/01/26

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

75

80,802

4.80%,

04/01/44

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

25

31,556

4.50%,

02/01/45

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

82

99,965

4.75%,

03/01/46

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

254

321,849

4,603,907

Building

Products

—

0.2%

Advanced

Drainage

Systems,

Inc.,

5.00%,

09/30/27

(b)

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

64

66,160

Builders

FirstSource,

Inc.,

6.75%,

06/01/27

(b)

18

18,990

Carlisle

Cos.,

Inc.,

2.20%,

03/01/32

......

265

255,209

Carrier

Global

Corp.,

2.24%,

02/15/25

....

70

71,679

Cornerstone

Building

Brands,

Inc.,

6.13%,

01/15/29

(b)

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

188

200,944

CP

Atlas

Buyer,

Inc.,

7.00%,

12/01/28

(b)

...

144

143,280

Forterra

Finance

LLC,

6.50%,

07/15/25

(b)

..

136

144,337

JELD-WEN,

Inc.

(b)

6.25%,

05/15/25

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

30

31,350

4.63%,

12/15/25

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

16

16,120

4.88%,

12/15/27

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

6

6,157

Masonite

International

Corp.

(b)

5.38%,

02/01/28

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

23

24,121

3.50%,

02/15/30

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

81

80,089

New

Enterprise

Stone

&

Lime

Co.,

Inc.

(b)

5.25%,

07/15/28

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

31

31,434

9.75%,

07/15/28

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

36

38,520

SRM

Escrow

Issuer

LLC,

6.00%,

11/01/28

(b)

190

202,834

Standard

Industries,

Inc.

(b)

5.00%,

02/15/27

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

55

56,617

4.38%,

07/15/30

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

212

216,347

3.38%,

01/15/31

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

13

12,523

Summit

Materials

LLC,

5.25%,

01/15/29

(b)

..

58

60,749

Victors

Merger

Corp.,

6.38%,

05/15/29

(b)

...

60

56,400

1,733,860

Capital

Markets

—

2.3%

Aretec

Escrow

Issuer,

Inc.,

7.50%,

04/01/29

(b)

39

39,911

Bank

of

New

York

Mellon

Corp.

(The),

1.60%,

04/24/25

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

140

141,286

Charles

Schwab

Corp.

(The),

1.15%,

05/13/26

300

295,957

Compass

Group

Diversified

Holdings

LLC,

5.25%,

04/15/29

(b)

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

74

77,515

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

16

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Credit

Suisse

AG

2.95%,

04/09/25

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

USD

250

$

261,684

1.25%,

08/07/26

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

375

365,562

Credit

Suisse

Group

AG

3.80%,

06/09/23

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

600

621,630

(USD

Swap

Semi

5

Year

+

3.46%),

6.25%

(a)

(b)(g)

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

400

426,000

(SOFR

+

1.56%),

2.59%,

09/11/25

(a)(b)

..

250

255,288

4.55%,

04/17/26

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

250

275,435

(SOFR

+

2.04%),

2.19%,

06/05/26

(a)(b)

..

485

487,711

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.82%),

6.37%

(a)(b)(g)

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

550

592,790

(SOFR

+

0.98%),

1.31%,

02/02/27

(a)(b)

..

330

318,833

(SOFR

+

3.73%),

4.19%,

04/01/31

(a)(b)

..

250

275,710

(SOFR

+

1.73%),

3.09%,

05/14/32

(a)(b)

..

250

254,388

Deutsche

Bank

AG

(a)

(SOFR

+

2.16%),

2.22%,

09/18/24

.....

390

395,016

(SOFR

+

1.13%),

1.45%,

04/01/25

.....

555

551,555

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.52%),

6.00%

(g)

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

800

831,000

(SOFR

+

1.87%),

2.13%,

11/24/26

.....

150

149,754

Goldman

Sachs

Group,

Inc.

(The)

(LIBOR

USD

3

Month

+

1.05%),

2.91%,

06/05/23

(a)

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

260

262,165

1.22%,

12/06/23

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

235

235,600

(SOFR

+

0.57%),

0.67%,

03/08/24

(a)

...

300

298,645

3.50%,

01/23/25

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

350

368,984

3.50%,

04/01/25

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

460

486,420

(LIBOR

USD

3

Month

+

1.20%),

3.27%,

09/29/25

(a)

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

295

309,527

4.25%,

10/21/25

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

100

109,055

(SOFR

+

0.61%),

0.86%,

02/12/26

(a)

...

100

98,041

3.75%,

02/25/26

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

100

107,691

Series

U,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%),

3.65%

(a)(g)

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

400

396,000

3.50%,

11/16/26

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

285

303,724

(SOFR

+

0.91%),

1.95%,

10/21/27

(a)

...

250

248,900

(LIBOR

USD

3

Month

+

1.16%),

3.81%,

04/23/29

(a)

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

75

81,581

(LIBOR

USD

3

Month

+

1.30%),

4.22%,

05/01/29

(a)

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

225

249,936

(SOFR

+

1.09%),

1.99%,

01/27/32

(a)

...

575

551,297

(SOFR

+

1.28%),

2.62%,

04/22/32

(a)

...

195

196,400

(SOFR

+

1.25%),

2.38%,

07/21/32

(a)

...

100

98,460

6.13%,

02/15/33

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

90

118,499

6.75%,

10/01/37

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

125

177,237

5.15%,

05/22/45

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

65

84,530

Intercontinental

Exchange,

Inc.,

4.25%,

09/21/48

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

65

79,447

Morgan

Stanley

(SOFR

+

0.46%),

0.53%,

01/25/24

(a)

...

650

647,766

(LIBOR

USD

3

Month

+

0.85%),

3.74%,

04/24/24

(a)

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

100

103,454

(SOFR

+

0.53%),

0.79%,

05/30/25

(a)

...

455

449,054

(SOFR

+

1.15%),

2.72%,

07/22/25

(a)

...

454

467,845

4.00%,

07/23/25

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

430

466,008

3.88%,

01/27/26

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

250

270,333

(SOFR

+

1.99%),

2.19%,

04/28/26

(a)

...

575

586,280

(SOFR

+

0.72%),

0.98%,

12/10/26

(a)

...

420

407,373

3.63%,

01/20/27

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

275

298,144

3.95%,

04/23/27

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

85

93,575

(SOFR

+

0.88%),

1.59%,

05/04/27

(a)

...

460

455,465

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

(SOFR

+

0.86%),

1.51%,

07/20/27

(a)

...

USD

465

$

457,671

(LIBOR

USD

3

Month

+

1.34%),

3.59%,

07/22/28

(a)

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

75

80,857

(LIBOR

USD

3

Month

+

1.14%),

3.77%,

01/24/29

(a)

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

300

326,453

(SOFR

+

3.12%),

3.62%,

04/01/31

(a)

...

165

179,799

(SOFR

+

1.02%),

1.93%,

04/28/32

(a)

...

160

152,882

(SOFR

+

1.49%),

3.22%,

04/22/42

(a)

...

55

57,621

(SOFR

+

1.43%),

2.80%,

01/25/52

(a)

...

40

39,248

MSCI,

Inc.

(b)

4.00%,

11/15/29

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

12

12,540

3.63%,

09/01/30

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

58

59,305

3.88%,

02/15/31

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

21

21,866

3.63%,

11/01/31

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

49

50,838

3.25%,

08/15/33

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

104

105,170

Nomura

Holdings,

Inc.

1.65%,

07/14/26

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

200

196,334

2.61%,

07/14/31

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

200

197,364

Northern

Trust

Corp.,

3.15%,

05/03/29

....

50

53,823

State

Street

Corp.

(a)

(LIBOR

USD

3

Month

+

0.77%),

3.78%,

12/03/24

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

55

57,903

(LIBOR

USD

3

Month

+

1.00%),

1.20%,

06/15/47

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

1,388

1,183,529

UBS

AG,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.31%),

4.38%

(a)(b)

(g)

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

200

197,560

UBS

Group

AG

(a)

(LIBOR

USD

3

Month

+

0.95%),

2.86%,

08/15/23

(b)

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

925

936,089

(USD

Swap

Semi

5

Year

+

4.34%),

7.00%

(b)

(g)

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

800

862,600

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.83%),

1.01%,

07/30/24

(b)

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

640

637,957

(USD

Swap

Semi

5

Year

+

4.87%),

7.00%

(g)

(h)

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

200

222,450

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.85%),

1.49%,

08/10/27

(b)

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

255

248,760

22,063,080

Chemicals

—

0.5%

Air

Products

&

Chemicals,

Inc.,

1.50%,

10/15/25

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

50

50,159

Ashland

LLC,

3.38%,

09/01/31

(b)

........

132

131,010

Axalta

Coating

Systems

LLC

(b)

4.75%,

06/15/27

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

200

208,500

3.38%,

02/15/29

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

150

145,125

Chemours

Co.

(The),

5.75%,

11/15/28

(b)

...

37

38,716

Diamond

BC

BV,

4.63%,

10/01/29

(b)

......

100

99,197

Dow

Chemical

Co.

(The),

3.60%,

11/15/50

.

20

21,658

DuPont

de

Nemours,

Inc.

4.21%,

11/15/23

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

500

528,735

5.32%,

11/15/38

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

110

141,738

5.42%,

11/15/48

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

36

50,376

Eastman

Chemical

Co.,

4.80%,

09/01/42

..

65

77,877

Ecolab,

Inc.,

2.70%,

12/15/51

.........

190

186,518

Element

Solutions,

Inc.,

3.88%,

09/01/28

(b)

.

562

564,810

EverArc

Escrow

SARL,

5.00%,

10/30/29

(b)

..

201

201,149

Gates

Global

LLC,

6.25%,

01/15/26

(b)

.....

180

185,850

GCP

Applied

Technologies,

Inc.,

5.50%,

04/15/26

(b)

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

46

47,150

HB

Fuller

Co.,

4.25%,

10/15/28

........

32

32,960

Illuminate

Buyer

LLC,

9.00%,

07/01/28

(b)

...

139

148,232

Ingevity

Corp.,

3.88%,

11/01/28

(b)

.......

26

25,317

BlackRock

Managed

Income

Fund

Schedule

of

Investments

17

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Chemicals

(continued)

International

Flavors

&

Fragrances,

Inc.

(b)

1.23%,

10/01/25

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

USD

800

$

782,330

2.30%,

11/01/30

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

95

93,153

3.47%,

12/01/50

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

191

200,096

Kobe

U.S.

Midco

2,

Inc.,

9.25%,

11/01/26

(a)(b)

87

88,740

LSF11

A5

HoldCo

LLC,

6.63%,

10/15/29

(b)

..

43

42,355

LYB

International

Finance

III

LLC

1.25%,

10/01/25

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

241

236,920

4.20%,

10/15/49

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

75

86,624

LyondellBasell

Industries

NV,

4.63%,

02/26/55

25

30,479

Minerals

Technologies,

Inc.,

5.00%,

07/01/28

(b)

46

47,681

NOVA

Chemicals

Corp.,

4.88%,

06/01/24

(b)

.

9

9,293

PPG

Industries,

Inc.,

1.20%,

03/15/26

....

45

44,016

SCIH

Salt

Holdings,

Inc.,

6.63%,

05/01/29

(b)

.

56

52,360

Scotts

Miracle-Gro

Co.

(The)

(b)

4.00%,

04/01/31

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

91

89,863

4.38%,

02/01/32

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

10

9,975

Sherwin-Williams

Co.

(The)

2.75%,

06/01/22

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

5

5,034

2.30%,

05/15/30

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

45

44,875

4.50%,

06/01/47

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

100

124,621

WR

Grace

Holdings

LLC,

5.63%,

08/15/29

(b)

422

432,023

5,305,515

Commercial

Services

&

Supplies

—

0.6%

ADT

Security

Corp.

(The),

4.13%,

06/15/23

.

14

14,541

Allied

Universal

Holdco

LLC

(b)

6.63%,

07/15/26

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

516

541,387

9.75%,

07/15/27

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

425

454,081

4.63%,

06/01/28

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

607

603,045

6.00%,

06/01/29

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

200

194,500

APi

Escrow

Corp.,

4.75%,

10/15/29

(b)

.....

38

38,760

APi

Group

DE,

Inc.,

4.13%,

07/15/29

(b)

....

50

50,250

APX

Group,

Inc.

(b)

6.75%,

02/15/27

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

91

95,550

5.75%,

07/15/29

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

101

99,485

Aramark

Services,

Inc.

(b)

5.00%,

04/01/25

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

310

316,262

6.38%,

05/01/25

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

35

36,575

5.00%,

02/01/28

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

51

52,721

Brink's

Co.

(The),

5.50%,

07/15/25

(b)

.....

14

14,560

Clean

Harbors,

Inc.

(b)

4.88%,

07/15/27

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

66

67,980

5.13%,

07/15/29

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

139

147,340

Covanta

Holding

Corp.,

5.00%,

09/01/30

..

45

45,900

Covert

Mergeco,

Inc.,

4.88%,

12/01/29

(b)

...

28

28,420

Garda

World

Security

Corp.

(b)

4.63%,

02/15/27

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

84

83,580

9.50%,

11/01/27

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

115

123,991

GFL

Environmental,

Inc.

(b)

4.25%,

06/01/25

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

18

18,521

3.75%,

08/01/25

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

53

53,530

5.13%,

12/15/26

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

270

280,800

4.00%,

08/01/28

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

166

162,680

3.50%,

09/01/28

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

109

107,365

4.75%,

06/15/29

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

98

98,858

4.38%,

08/15/29

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

111

109,959

IAA,

Inc.,

5.50%,

06/15/27

(b)

..........

141

146,111

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(b)

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

27

27,135

Madison

IAQ

LLC

(b)

4.13%,

06/30/28

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

37

37,092

5.88%,

06/30/29

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

341

341,000

Nielsen

Finance

LLC

(b)

5.63%,

10/01/28

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

73

75,372

5.88%,

10/01/30

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

203

214,336

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Prime

Security

Services

Borrower

LLC

(b)

5.25%,

04/15/24

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

USD

24

$

25,540

5.75%,

04/15/26

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

22

23,621

3.38%,

08/31/27

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

14

13,515

6.25%,

01/15/28

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

278

289,815

RELX

Capital,

Inc.,

3.50%,

03/16/23

.....

40

41,174

Republic

Services,

Inc.

0.88%,

11/15/25

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

90

87,473

3.38%,

11/15/27

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

35

37,506

3.95%,

05/15/28

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

140

155,051

2.30%,

03/01/30

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

100

100,253

2.38%,

03/15/33

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

20

19,906

Ritchie

Bros

Auctioneers,

Inc.,

5.38%,

01/15/25

(b)

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

25

25,263

Stericycle,

Inc.,

3.88%,

01/15/29

(b)

.......

51

50,235

Waste

Management,

Inc.

1.50%,

03/15/31

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

180

169,480

2.50%,

11/15/50

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

35

33,297

Waste

Pro

USA,

Inc.,

5.50%,

02/15/26

(b)

...

208

206,960

5,960,776

Communications

Equipment

—

0.2%

Avaya,

Inc.,

6.13%,

09/15/28

(b)

.........

414

438,840

CommScope

Technologies

LLC,

6.00%,

06/15/25

(b)

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

23

23,000

CommScope,

Inc.

(b)

6.00%,

03/01/26

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

59

60,770

8.25%,

03/01/27

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

117

120,240

7.13%,

07/01/28

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

159

156,217

4.75%,

09/01/29

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

176

174,911

Motorola

Solutions,

Inc.

4.60%,

02/23/28

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

100

112,903

4.60%,

05/23/29

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

285

325,614

2.30%,

11/15/30

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

120

115,931

2.75%,

05/24/31

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

200

200,360

5.50%,

09/01/44

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

10

13,017

Nokia

OYJ,

6.63%,

05/15/39

..........

32

44,280

ViaSat,

Inc.

(b)

5.63%,

04/15/27

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

82

84,517

6.50%,

07/15/28

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

337

337,843

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

(b)

...

110

109,994

2,318,437

Construction

&

Engineering

—

0.0%

(b)

Arcosa,

Inc.,

4.38%,

04/15/29

.........

130

131,788

Brand

Industrial

Services,

Inc.,

8.50%,

07/15/25

157

156,854

Dycom

Industries,

Inc.,

4.50%,

04/15/29

...

35

35,656

MasTec,

Inc.,

4.50%,

08/15/28

.........

58

60,247

384,545

Consumer

Finance

—

1.3%

AerCap

Ireland

Capital

DAC

4.13%,

07/03/23

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

150

155,792

4.88%,

01/16/24

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

175

186,105

3.50%,

01/15/25

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

410

427,989

1.75%,

01/30/26

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

335

328,572

3.65%,

07/21/27

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

220

231,841

3.00%,

10/29/28

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

165

167,332

Ally

Financial,

Inc.

5.75%,

11/20/25

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

280

315,792

2.20%,

11/02/28

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

160

158,932

American

Express

Co.

3.40%,

02/22/24

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

200

209,745

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.85%),

3.55%

(a)(g)

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

1,275

1,277,231

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

18

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Consumer

Finance

(continued)

American

Honda

Finance

Corp.

2.15%,

09/10/24

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

USD

100

$

102,465

1.20%,

07/08/25

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

100

99,608

1.00%,

09/10/25

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

625

614,993

Capital

One

Financial

Corp.

3.90%,

01/29/24

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

180

189,419

3.30%,

10/30/24

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

300

315,739

(SOFR

+

0.69%),

1.34%,

12/06/24

(a)

...

430

432,598

Series

M,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.16%),

3.95%

(a)(g)

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

1,000

1,005,000

3.80%,

01/31/28

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

195

212,291

(SOFR

+

1.27%),

2.62%,

11/02/32

(a)

....

100

99,726

Castlelake

Aviation

Finance

DAC,

5.00%,

04/15/27

(b)

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

28

27,790

Caterpillar

Financial

Services

Corp.,

1.45%,

05/15/25

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

174

174,507

Ford

Motor

Credit

Co.

LLC

3.35%,

11/01/22

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

300

303,750

3.81%,

01/09/24

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

200

207,448

5.58%,

03/18/24

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

400

431,000

4.13%,

08/04/25

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

200

212,250

3.38%,

11/13/25

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

255

264,925

2.70%,

08/10/26

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

200

201,750

2.90%,

02/16/28

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

200

200,500

5.11%,

05/03/29

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

200

227,250

4.00%,

11/13/30

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

200

215,160

General

Motors

Financial

Co.,

Inc.

3.25%,

01/05/23

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

175

178,786

4.15%,

06/19/23

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

800

832,028

3.95%,

04/13/24

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

200

210,446

4.00%,

01/15/25

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

235

249,643

4.35%,

04/09/25

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

535

575,597

4.30%,

07/13/25

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

35

37,728

1.25%,

01/08/26

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

130

127,197

Global

Aircraft

Leasing

Co.

Ltd.,

6.50%,

(6.50%

Cash

or

7.25%

PIK),

09/15/24

(b)(i)

......

84

80,825

Navient

Corp.

6.13%,

03/25/24

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

20

21,325

5.88%,

10/25/24

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

23

24,524

5.50%,

03/15/29

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

103

102,742

OneMain

Finance

Corp.

6.88%,

03/15/25

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

35

38,937

7.13%,

03/15/26

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

35

39,900

3.50%,

01/15/27

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

110

108,763

6.63%,

01/15/28

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

282

315,840

5.38%,

11/15/29

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

6

6,524

SLM

Corp.,

3.13%,

11/02/26

..........

65

64,350

Synchrony

Financial

4.25%,

08/15/24

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

150

158,869

3.95%,

12/01/27

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

90

96,644

Toyota

Motor

Credit

Corp.

1.80%,

02/13/25

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

100

101,497

0.80%,

10/16/25

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

115

112,277

1.15%,

08/13/27

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

340

329,983

2.15%,

02/13/30

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

190

190,396

13,002,321

Containers

&

Packaging

—

0.4%

ARD

Finance

SA,

6.50%,

06/30/27

(b)

.....

400

412,000

Ardagh

Metal

Packaging

Finance

USA

LLC,

4.00%,

09/01/29

(b)

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

310

307,133

Ardagh

Packaging

Finance

plc

(b)

4.13%,

08/15/26

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

259

264,827

5.25%,

08/15/27

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

400

402,500

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

(continued)

Ball

Corp.

2.88%,

08/15/30

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

USD

12

$

11,640

3.13%,

09/15/31

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

155

153,062

Berry

Global,

Inc.,

1.57%,

01/15/26

......

430

420,764

Crown

Americas

LLC,

4.25%,

09/30/26

...

34

36,295

Crown

Cork

&

Seal

Co.,

Inc.,

7.38%,

12/15/26

8

9,650

Graham

Packaging

Co.,

Inc.,

7.13%,

08/15/28

(b)

10

10,351

Graphic

Packaging

International

LLC

(b)

4.75%,

07/15/27

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

15

16,200

3.50%,

03/15/28

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

3

2,993

International

Paper

Co.,

4.35%,

08/15/48

..

75

91,865

Intertape

Polymer

Group,

Inc.,

4.38%,

06/15/29

(b)

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

51

51,000

LABL,

Inc.,

5.88%,

11/01/28

(b)

.........

98

101,001

Mauser

Packaging

Solutions

Holding

Co.,

5.50%,

04/15/24

(b)

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

174

175,596

Sealed

Air

Corp.,

4.00%,

12/01/27

(b)

.....

26

27,095

Silgan

Holdings,

Inc.,

4.13%,

02/01/28

....

8

8,170

Trivium

Packaging

Finance

BV

(b)(j)

5.50%,

08/15/26

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

400

416,000

8.50%,

08/15/27

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

600

634,500

WRKCo,

Inc.

3.75%,

03/15/25

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

155

165,136

3.90%,

06/01/28

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

209

228,819

3.00%,

06/15/33

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

200

205,663

4,152,260

Distributors

—

0.0%

(b)

American

Builders

&

Contractors

Supply

Co.,

Inc.

4.00%,

01/15/28

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

5

5,116

3.88%,

11/15/29

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

17

16,958

BCPE

Empire

Holdings,

Inc.,

7.63%,

05/01/27

41

41,864

Wolverine

Escrow

LLC,

9.00%,

11/15/26

...

92

87,400

151,338

Diversified

Consumer

Services

—

0.1%

Graham

Holdings

Co.,

5.75%,

06/01/26

(b)

..

25

25,969

Metis

Merger

Sub

LLC,

6.50%,

05/15/29

(b)

..

81

79,557

Service

Corp.

International,

4.00%,

05/15/31

232

234,900

Sotheby's

(b)

7.38%,

10/15/27

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

600

639,000

5.88%,

06/01/29

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

200

204,000

Trustees

of

Boston

University,

Series

CC,

4.06%,

10/01/48

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

21

25,470

1,208,896

Diversified

Financial

Services

—

0.4%

Blackstone

Private

Credit

Fund,

3.25%,

03/15/27

(b)

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

470

474,855

Jefferies

Finance

LLC,

5.00%,

08/15/28

(b)

..

200

205,000

LSEGA

Financing

plc,

1.38%,

04/06/26

(b)

..

300

294,033

MPH

Acquisition

Holdings

LLC,

5.50%,

09/01/28

(b)

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

123

124,691

NTT

Finance

Corp.,

1.16%,

04/03/26

(b)

....

835

819,173

Sabre

GLBL,

Inc.

(b)

9.25%,

04/15/25

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

158

178,540

7.38%,

09/01/25

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

79

82,555

Shell

International

Finance

BV

3.25%,

05/11/25

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

120

127,710

2.38%,

11/07/29

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

10

10,214

2.75%,

04/06/30

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

10

10,445

3.63%,

08/21/42

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

25

27,457

3.00%,

11/26/51

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

15

15,241

Shift4

Payments

LLC,

4.63%,

11/01/26

(b)

...

113

117,069

Siemens

Financieringsmaatschappij

NV

(b)

1.20%,

03/11/26

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

510

501,678

BlackRock

Managed

Income

Fund

Schedule

of

Investments

19

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Diversified

Financial

Services

(continued)

2.88%,

03/11/41

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

USD

250

$

254,975

Verscend

Escrow

Corp.,

9.75%,

08/15/26

(b)

.

665

706,855

3,950,491

Diversified

Telecommunication

Services

—

1.8%

Altice

France

Holding

SA

(b)

10.50%,

05/15/27

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

1,325

1,424,375

6.00%,

02/15/28

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

200

191,000

Altice

France

SA

(b)

5.13%,

07/15/29

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

380

370,671

5.50%,

10/15/29

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

200

197,000

AT&T,

Inc.

3.40%,

05/15/25

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

150

158,463

3.60%,

07/15/25

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

260

277,537

1.70%,

03/25/26

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

70

69,638

4.35%,

03/01/29

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

140

157,259

2.55%,

12/01/33

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

253

247,445

4.50%,

05/15/35

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

655

756,654

4.85%,

03/01/39

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

100

119,528

5.35%,

09/01/40

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

473

599,222

3.50%,

06/01/41

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

415

426,514

3.10%,

02/01/43

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

100

97,214

4.65%,

06/01/44

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

17

19,910

4.75%,

05/15/46

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

25

30,191

3.55%,

09/15/55

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

275

275,998

3.80%,

12/01/57

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

71

73,915

CCO

Holdings

LLC

4.75%,

03/01/30

(b)

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

178

185,120

4.50%,

08/15/30

(b)

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

123

125,852

4.25%,

02/01/31

(b)

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

321

323,818

4.50%,

05/01/32

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

418

430,018

4.50%,

06/01/33

(b)

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

74

75,497

4.25%,

01/15/34

(b)

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

406

399,434

Consolidated

Communications,

Inc.,

6.50%,

10/01/28

(b)

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

380

402,800

Frontier

Communications

Corp.

(b)

5.88%,

10/15/27

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

215

227,362

5.00%,

05/01/28

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

270

278,100

6.75%,

05/01/29

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

146

151,840

Frontier

Communications

Holdings

LLC,

6.00%,

01/15/30

(b)

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

173

173,865

Iliad

Holding

SAS

(b)

6.50%,

10/15/26

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

200

210,146

7.00%,

10/15/28

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

200

210,314

Intelsat

Jackson

Holdings

SA,

8.00%,

02/15/24

(b)(j)

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

108

109,485

Level

3

Financing,

Inc.

(b)

4.63%,

09/15/27

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

35

35,700

4.25%,

07/01/28

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

285

282,150

3.63%,

01/15/29

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

23

21,850

3.75%,

07/15/29

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

14

13,300

Lumen

Technologies,

Inc.

Series

W,

6.75%,

12/01/23

..........

27

29,160

Series

Y,

7.50%,

04/01/24

..........

2

2,190

5.13%,

12/15/26

(b)

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

338

351,733

4.00%,

02/15/27

(b)

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

129

130,877

Series

G,

6.88%,

01/15/28

..........

51

56,738

4.50%,

01/15/29

(b)

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

267

258,322

5.38%,

06/15/29

(b)

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

181

181,000

Series

P,

7.60%,

09/15/39

..........

14

15,015

Series

U,

7.65%,

03/15/42

..........

49

52,729

Sprint

Capital

Corp.

6.88%,

11/15/28

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

394

498,410

8.75%,

03/15/32

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

499

748,500

Switch

Ltd.

(b)

3.75%,

09/15/28

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

100

100,750

Security

Par

(000)

Par

(000)

Value

Diversified

Telecommunication

Services

(continued)

4.13%,

06/15/29

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

USD

289

$

295,503

Telecom

Italia

Capital

SA

6.38%,

11/15/33

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

84

90,452

6.00%,

09/30/34

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

178

188,264

7.20%,

07/18/36

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

29

33,250

7.72%,

06/04/38

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

21

24,681

Telefonica

Emisiones

SA

4.10%,

03/08/27

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

150

165,105

5.52%,

03/01/49

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

150

195,268

Telesat

Canada,

4.88%,

06/01/27

(b)

......

55

48,565

Verizon

Communications,

Inc.

0.85%,

11/20/25

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

135

131,706

1.45%,

03/20/26

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

390

388,023

1.50%,

09/18/30

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

100

93,812

2.55%,

03/21/31

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

100

100,891

4.27%,

01/15/36

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

1,265

1,483,826

2.65%,

11/20/40

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

250

237,554

3.40%,

03/22/41

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

140

146,572

2.85%,

09/03/41

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

130

128,249

2.99%,

10/30/56

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

325

307,642

3.70%,

03/22/61

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

367

397,908

Zayo

Group

Holdings,

Inc.

(b)

4.00%,

03/01/27

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

864

851,705

6.13%,

03/01/28

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

619

609,715

17,493,300

Electric

Utilities

—

1.7%

Alabama

Power

Co.,

3.75%,

03/01/45

....

25

27,663

Alliant

Energy

Finance

LLC,

3.75%,

06/15/23

(b)

245

253,774

Baltimore

Gas

&

Electric

Co.

3.35%,

07/01/23

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

300

309,042

3.20%,

09/15/49

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

50

52,211

2.90%,

06/15/50

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

95

94,387

Duke

Energy

Carolinas

LLC

6.10%,

06/01/37

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

24

32,537

6.05%,

04/15/38

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

100

138,592

3.75%,

06/01/45

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

50

55,282

3.70%,

12/01/47

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

60

66,719

3.95%,

03/15/48

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

50

57,596

3.20%,

08/15/49

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

200

206,995

3.45%,

04/15/51

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

25

27,340

Duke

Energy

Corp.

3.95%,

10/15/23

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

335

349,718

3.75%,

04/15/24

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

360

378,047

2.65%,

09/01/26

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

100

103,531

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.32%),

3.25%,

01/15/82

(a)

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

335

326,524

Duke

Energy

Florida

LLC

2.50%,

12/01/29

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

395

405,902

1.75%,

06/15/30

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

140

134,347

6.40%,

06/15/38

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

80

115,332

5.65%,

04/01/40

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

50

67,290

Duke

Energy

Progress

LLC

3.45%,

03/15/29

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

313

337,762

4.10%,

05/15/42

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

50

58,378

4.10%,

03/15/43

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

25

28,883

2.50%,

08/15/50

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

30

27,711

Edison

International

2.40%,

09/15/22

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

250

252,400

Series

B,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.90%),

5.00%

(a)(g)

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

65

66,417

Emera

US

Finance

LP,

0.83%,

06/15/24

...

265

260,064

Enel

Finance

International

NV,

1.38%,

07/12/26

(b)

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

695

676,804

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

20

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

Entergy

Corp.

0.90%,

09/15/25

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

USD

375

$

363,200

2.40%,

06/15/31

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

100

98,489

Eversource

Energy,

Series

H,

3.15%,

01/15/25

200

208,339

Exelon

Corp.

4.05%,

04/15/30

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

50

55,553

4.70%,

04/15/50

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

70

87,874

FirstEnergy

Corp.

Series

A,

3.35%,

07/15/22

(j)

.........

17

17,052

Series

B,

4.40%,

07/15/27

(j)

.........

185

199,252

2.65%,

03/01/30

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

316

312,050

Series

B,

2.25%,

09/01/30

..........

7

6,739

Series

C,

7.38%,

11/15/31

..........

28

37,783

Series

C,

5.35%,

07/15/47

(j)

.........

50

59,438

Series

C,

3.40%,

03/01/50

..........

331

324,380

FirstEnergy

Transmission

LLC

(b)

4.35%,

01/15/25

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

205

217,948

5.45%,

07/15/44

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

193

243,555

4.55%,

04/01/49

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

56

63,928

Florida

Power

&

Light

Co.

4.13%,

02/01/42

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

120

142,807

3.70%,

12/01/47

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

25

28,621

3.95%,

03/01/48

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

50

59,295

3.15%,

10/01/49

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

100

106,164

2.88%,

12/04/51

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

140

141,981

Interstate

Power

and

Light

Co.

3.25%,

12/01/24

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

100

104,976

3.50%,

09/30/49

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

25

26,791

MidAmerican

Energy

Co.

3.65%,

04/15/29

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

225

247,939

4.25%,

07/15/49

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

260

320,814

Mid-Atlantic

Interstate

Transmission

LLC,

4.10%,

05/15/28

(b)

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

265

291,064

NextEra

Energy

Capital

Holdings,

Inc.

1.88%,

01/15/27

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

90

90,534

3.55%,

05/01/27

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

30

32,499

1.90%,

06/15/28

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

185

183,050

2.44%,

01/15/32

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

235

235,525

3.00%,

01/15/52

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

60

59,893

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.55%),

3.80%,

03/15/82

(a)

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

725

737,569

NextEra

Energy

Operating

Partners

LP,

4.25%,

09/15/24

(b)

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

4

4,140

Northern

States

Power

Co.

2.90%,

03/01/50

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

62

62,594

2.60%,

06/01/51

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

60

57,238

NRG

Energy,

Inc.

(b)

2.45%,

12/02/27

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

145

143,675

3.63%,

02/15/31

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

96

93,600

3.88%,

02/15/32

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

142

139,160

Ohio

Power

Co.

Series

P,

2.60%,

04/01/30

..........

200

204,959

4.00%,

06/01/49

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

120

137,851

Series

R,

2.90%,

10/01/51

..........

120

115,718

Oncor

Electric

Delivery

Co.

LLC

2.75%,

06/01/24

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

240

248,772

2.75%,

05/15/30

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

132

137,125

4.10%,

11/15/48

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

146

175,980

3.10%,

09/15/49

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

100

104,348

3.70%,

05/15/50

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

264

303,470

Pacific

Gas

&

Electric

Co.

1.37%,

03/10/23

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

460

457,128

3.40%,

08/15/24

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

190

196,470

3.45%,

07/01/25

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

274

284,182

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

3.30%,

12/01/27

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

USD

440

$

447,220

4.50%,

07/01/40

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

50

52,070

4.45%,

04/15/42

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

85

86,283

4.00%,

12/01/46

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

46

44,641

4.95%,

07/01/50

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

254

276,620

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(b)

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

83

86,112

PECO

Energy

Co.,

2.85%,

09/15/51

.....

40

39,610

PG&E

Corp.,

5.25%,

07/01/30

.........

48

50,338

PPL

Electric

Utilities

Corp.,

3.95%,

06/01/47

25

29,198

Progress

Energy,

Inc.,

6.00%,

12/01/39

...

105

143,845

Public

Service

Co.

of

Colorado

3.80%,

06/15/47

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

60

67,603

Series

34,

3.20%,

03/01/50

.........

75

78,192

2.70%,

01/15/51

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

75

71,957

Southern

California

Edison

Co.

Series

J,

0.70%,

08/01/23

..........

230

228,557

1.10%,

04/01/24

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

505

503,082

Series

E,

3.70%,

08/01/25

..........

300

320,312

4.00%,

04/01/47

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

46

50,720

Series

C,

4.13%,

03/01/48

..........

9

10,096

Series

B,

4.88%,

03/01/49

..........

65

79,350

Series

20A,

2.95%,

02/01/51

........

75

71,413

Series

H,

3.65%,

06/01/51

..........

135

146,266

Tampa

Electric

Co.

4.45%,

06/15/49

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

100

125,666

3.45%,

03/15/51

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

35

38,215

Virginia

Electric

&

Power

Co.

8.88%,

11/15/38

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

205

361,507

4.45%,

02/15/44

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

100

122,068

2.45%,

12/15/50

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

25

23,031

Vistra

Operations

Co.

LLC,

4.38%,

05/01/29

(b)

86

86,140

Wisconsin

Electric

Power

Co.,

2.05%,

12/15/24

250

255,806

16,778,678

Electrical

Equipment

—

0.0%

(b)

Sensata

Technologies

BV

5.63%,

11/01/24

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

9

9,894

5.00%,

10/01/25

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

4

4,340

4.00%,

04/15/29

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

44

44,935

Vertiv

Group

Corp.,

4.13%,

11/15/28

.....

254

256,540

315,709

Electronic

Equipment,

Instruments

&

Components

—

0.1%

Amphenol

Corp.,

2.05%,

03/01/25

.......

70

71,316

II-VI,

Inc.,

5.00%,

12/15/29

(b)

..........

136

138,886

Sensata

Technologies,

Inc.

(b)

4.38%,

02/15/30

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

235

246,750

3.75%,

02/15/31

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

65

64,769

521,721

Energy

Equipment

&

Services

—

0.2%

Archrock

Partners

LP

(b)

6.88%,

04/01/27

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

59

61,950

6.25%,

04/01/28

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

422

440,028

ChampionX

Corp.,

6.38%,

05/01/26

......

16

16,640

Halliburton

Co.

3.50%,

08/01/23

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

21

21,680

3.80%,

11/15/25

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

4

4,300

2.92%,

03/01/30

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

165

169,740

5.00%,

11/15/45

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

85

101,552

Nabors

Industries

Ltd.

(b)

7.25%,

01/15/26

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

20

18,500

7.50%,

01/15/28

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

52

47,060

Nabors

Industries,

Inc.,

7.38%,

05/15/27

(b)

..

78

80,745

Schlumberger

Finance

Canada

Ltd.,

1.40%,

09/17/25

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

40

39,852

BlackRock

Managed

Income

Fund

Schedule

of

Investments

21

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Energy

Equipment

&

Services

(continued)

Tervita

Corp.,

11.00%,

12/01/25

(b)

.......

USD

35

$

40,294

Transocean,

Inc.,

11.50%,

01/30/27

(b)

.....

19

18,620

USA

Compression

Partners

LP

6.88%,

04/01/26

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

225

234,000

6.88%,

09/01/27

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

158

166,887

Weatherford

International

Ltd.

(b)

6.50%,

09/15/28

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

5

5,290

8.63%,

04/30/30

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

79

82,014

1,549,152

Entertainment

—

0.2%

AMC

Entertainment

Holdings,

Inc.,

10.00%,

06/15/26

(b)

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

98

96,829

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

(b)

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

53

53,928

Live

Nation

Entertainment,

Inc.

(b)

4.88%,

11/01/24

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

9

9,090

6.50%,

05/15/27

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

312

341,250

4.75%,

10/15/27

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

180

184,950

3.75%,

01/15/28

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

45

44,662

Netflix,

Inc.,

4.38%,

11/15/26

..........

237

262,478

Playtika

Holding

Corp.,

4.25%,

03/15/29

(b)

..

220

215,600

TWDC

Enterprises

18

Corp.,

4.13%,

06/01/44

55

65,687

Walt

Disney

Co.

(The)

4.63%,

03/23/40

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

92

114,356

3.50%,

05/13/40

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

201

220,134

WMG

Acquisition

Corp.,

3.88%,

07/15/30

(b)

.

4

4,065

1,613,029

Equity

Real

Estate

Investment

Trusts

(REITs)

—

1.3%

Alexandria

Real

Estate

Equities,

Inc.

3.80%,

04/15/26

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

200

216,413

2.75%,

12/15/29

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

175

180,341

4.90%,

12/15/30

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

185

222,218

2.00%,

05/18/32

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

75

71,626

1.88%,

02/01/33

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

160

150,344

American

Finance

Trust,

Inc.,

4.50%,

09/30/28

(b)

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

25

25,184

American

Tower

Corp.

3.00%,

06/15/23

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

35

35,986

5.00%,

02/15/24

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

285

306,656

2.40%,

03/15/25

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

330

338,849

4.00%,

06/01/25

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

175

187,270

1.30%,

09/15/25

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

100

98,476

1.45%,

09/15/26

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

90

88,063

3.38%,

10/15/26

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

185

196,567

3.95%,

03/15/29

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

255

278,032

1.88%,

10/15/30

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

150

141,744

2.70%,

04/15/31

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

170

170,517

2.95%,

01/15/51

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

60

56,833

Boston

Properties

LP

4.50%,

12/01/28

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

155

174,682

3.40%,

06/21/29

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

30

31,842

3.25%,

01/30/31

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

10

10,477

2.45%,

10/01/33

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

195

188,834

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(b)

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

67

65,732

Camden

Property

Trust,

2.80%,

05/15/30

..

70

72,796

Crown

Castle

International

Corp.

3.20%,

09/01/24

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

280

292,236

1.05%,

07/15/26

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

400

386,285

4.30%,

02/15/29

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

45

50,233

3.10%,

11/15/29

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

60

62,647

2.25%,

01/15/31

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

250

243,562

2.50%,

07/15/31

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

240

238,220

2.90%,

04/01/41

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

125

121,566

Security

Par

(000)

Par

(000)

Value

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

4.15%,

07/01/50

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

USD

60

$

67,471

CTR

Partnership

LP,

3.88%,

06/30/28

(b)

...

62

63,240

Diversified

Healthcare

Trust,

9.75%,

06/15/25

21

22,721

Duke

Realty

LP,

2.88%,

11/15/29

.......

50

51,950

Equinix,

Inc.

1.25%,

07/15/25

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

495

486,158

2.90%,

11/18/26

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

75

77,697

1.55%,

03/15/28

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

150

144,278

3.00%,

07/15/50

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

25

23,915

2.95%,

09/15/51

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

185

174,603

3.40%,

02/15/52

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

25

25,488

ERP

Operating

LP

2.85%,

11/01/26

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

90

94,670

4.15%,

12/01/28

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

50

56,400

2.50%,

02/15/30

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

50

51,293

Global

Net

Lease,

Inc.,

3.75%,

12/15/27

(b)

..

47

45,901

GLP

Capital

LP

4.00%,

01/15/30

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

500

529,023

3.25%,

01/15/32

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

40

40,216

HAT

Holdings

I

LLC,

3.38%,

06/15/26

(b)

...

74

74,740

Healthpeak

Properties,

Inc.

3.00%,

01/15/30

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

55

57,736

2.88%,

01/15/31

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

50

51,996

Iron

Mountain

Information

Management

Services,

Inc.,

5.00%,

07/15/32

(b)

......

137

140,215

Iron

Mountain,

Inc.

(b)

5.25%,

07/15/30

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

68

71,660

5.63%,

07/15/32

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

196

209,756

MGM

Growth

Properties

Operating

Partnership

LP

5.63%,

05/01/24

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

56

59,848

4.63%,

06/15/25

(b)

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

90

95,948

4.50%,

09/01/26

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

353

379,475

4.50%,

01/15/28

.................

135

145,800

3.88%,

02/15/29

(b)

................

97

101,850

Mid-America

Apartments

LP,

1.70%,

02/15/31

45

42,972

MPT

Operating

Partnership

LP

5.00%,

10/15/27

.................

22

23,018

4.63%,

08/01/29

.................

290

305,950

3.50%,

03/15/31

.................

313

316,521

Prologis

LP

3.88%,

09/15/28

.................

50

56,016

2.25%,

04/15/30

.................

100

100,508

Realty

Income

Corp.

3.00%,

01/15/27

.................

125

131,867

3.95%,

08/15/27

.................

155

171,858

2.20%,

06/15/28

.................

110

111,029

2.85%,

12/15/32

.................

95

98,581

Regency

Centers

LP,

4.13%,

03/15/28

....

70

78,100

RHP

Hotel

Properties

LP

4.75%,

10/15/27

.................

293

298,860

4.50%,

02/15/29

(b)

................

126

126,000

RLJ

Lodging

Trust

LP

(b)

3.75%,

07/01/26

.................

51

51,280

4.00%,

09/15/29

.................

37

36,605

SBA

Communications

Corp.,

3.88%,

02/15/27

325

334,750

Service

Properties

Trust

4.35%,

10/01/24

.................

10

9,800

7.50%,

09/15/25

.................

129

139,763

5.50%,

12/15/27

.................

41

42,078

Simon

Property

Group

LP

3.75%,

02/01/24

.................

240

251,273

3.80%,

07/15/50

.................

175

196,238

UDR,

Inc.,

2.10%,

08/01/32

...........

70

66,537

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

22

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

Uniti

Group

LP

(b)

7.88%,

02/15/25

.................

USD

28

$

29,225

4.75%,

04/15/28

.................

156

154,710

6.50%,

02/15/29

.................

235

234,193

6.00%,

01/15/30

.................

65

62,552

Ventas

Realty

LP

3.00%,

01/15/30

.................

55

56,763

4.75%,

11/15/30

.................

100

116,467

VICI

Properties

LP

(b)

3.50%,

02/15/25

.................

436

442,540

4.25%,

12/01/26

.................

127

132,267

3.75%,

02/15/27

.................

93

96,055

4.63%,

12/01/29

.................

208

221,359

4.13%,

08/15/30

.................

353

373,297

Welltower,

Inc.,

2.05%,

01/15/29

........

140

137,785

13,095,096

Food

&

Staples

Retailing

—

0.2%

7-Eleven,

Inc.

(b)

0.80%,

02/10/24

.................

225

222,431

0.95%,

02/10/26

.................

550

532,580

Albertsons

Cos.,

Inc.

(b)

3.25%,

03/15/26

.................

109

111,044

4.63%,

01/15/27

.................

261

273,904

5.88%,

02/15/28

.................

115

121,900

4.88%,

02/15/30

.................

6

6,478

Performance

Food

Group,

Inc.,

4.25%,

08/01/29

(b)

....................

127

125,992

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

(b)

29

31,053

US

Foods,

Inc.

(b)

6.25%,

04/15/25

.................

29

30,196

4.75%,

02/15/29

.................

101

102,641

Walmart,

Inc.

2.50%,

09/22/41

.................

85

85,699

2.65%,

09/22/51

.................

170

173,816

1,817,734

Food

Products

—

0.4%

Chobani

LLC

(b)

7.50%,

04/15/25

.................

207

213,096

4.63%,

11/15/28

.................

78

80,142

General

Mills,

Inc.

4.00%,

04/17/25

.................

95

102,006

2.25%,

10/14/31

.................

10

9,881

JBS

USA

LUX

SA,

3.75%,

12/01/31

(b)

.....

147

149,205

JDE

Peet's

NV,

1.38%,

01/15/27

(b)

.......

330

318,686

Kraft

Heinz

Foods

Co.

3.00%,

06/01/26

.................

65

67,987

6.88%,

01/26/39

.................

47

69,077

4.63%,

10/01/39

.................

16

18,792

6.50%,

02/09/40

.................

35

49,779

5.00%,

06/04/42

.................

24

29,855

5.20%,

07/15/45

.................

79

100,446

4.38%,

06/01/46

.................

159

186,189

4.88%,

10/01/49

.................

386

484,794

5.50%,

06/01/50

.................

648

877,318

Lamb

Weston

Holdings,

Inc.

(b)

4.13%,

01/31/30

.................

63

64,650

4.38%,

01/31/32

.................

61

62,907

McCormick

&

Co.,

Inc.,

0.90%,

02/15/26

...

95

91,813

Pilgrim's

Pride

Corp.

(b)

4.25%,

04/15/31

.................

10

10,500

3.50%,

03/01/32

.................

211

213,110

Post

Holdings,

Inc.

(b)

5.63%,

01/15/28

.................

61

64,644

5.50%,

12/15/29

.................

25

26,266

Security

Par

(000)

Par

(000)

Value

Food

Products

(continued)

4.50%,

09/15/31

.................

USD

49

$

48,632

Simmons

Foods,

Inc.,

4.63%,

03/01/29

(b)

..

98

96,530

Tyson

Foods,

Inc.,

3.90%,

09/28/23

......

40

41,866

3,478,171

Gas

Utilities

—

0.1%

Atmos

Energy

Corp.

2.63%,

09/15/29

.................

40

41,124

2.85%,

02/15/52

.................

75

72,882

CenterPoint

Energy

Resources

Corp.,

1.75%,

10/01/30

.....................

130

123,127

ONE

Gas,

Inc.,

1.10%,

03/11/24

........

310

308,311

Piedmont

Natural

Gas

Co.,

Inc.,

3.35%,

06/01/50

.....................

50

51,262

Suburban

Propane

Partners

LP,

5.00%,

06/01/31

(b)

....................

50

50,562

647,268

Health

Care

Equipment

&

Supplies

—

0.3%

Abbott

Laboratories

3.75%,

11/30/26

.................

68

75,142

4.75%,

11/30/36

.................

105

133,993

4.90%,

11/30/46

.................

70

95,704

Avantor

Funding,

Inc.

(b)

4.63%,

07/15/28

.................

388

404,490

3.88%,

11/01/29

.................

107

108,168

Becton

Dickinson

and

Co.

3.73%,

12/15/24

.................

52

55,272

3.70%,

06/06/27

.................

559

609,183

4.67%,

06/06/47

.................

50

63,042

3.79%,

05/20/50

.................

180

201,973

Hologic,

Inc.,

3.25%,

02/15/29

(b)

........

27

27,000

Medtronic,

Inc.

4.38%,

03/15/35

.................

108

132,855

4.63%,

03/15/45

.................

25

32,741

Mozart

Debt

Merger

Sub,

Inc.

(b)

3.88%,

04/01/29

.................

153

152,460

5.25%,

10/01/29

.................

510

516,956

Ortho-Clinical

Diagnostics,

Inc.

(b)

7.38%,

06/01/25

.................

83

87,565

7.25%,

02/01/28

.................

436

468,700

Teleflex,

Inc.,

4.63%,

11/15/27

.........

20

20,800

3,186,044

Health

Care

Providers

&

Services

—

1.6%

Acadia

Healthcare

Co.,

Inc.

(b)

5.50%,

07/01/28

.................

22

23,124

5.00%,

04/15/29

.................

41

42,127

AdaptHealth

LLC

(b)

6.13%,

08/01/28

.................

20

21,200

5.13%,

03/01/30

.................

19

19,333

Aetna,

Inc.

2.75%,

11/15/22

.................

25

25,325

4.13%,

11/15/42

.................

50

56,394

3.88%,

08/15/47

.................

136

151,283

AHP

Health

Partners,

Inc.,

5.75%,

07/15/29

(b)

117

115,830

Akumin

Escrow,

Inc.,

7.50%,

08/01/28

(b)

...

22

20,625

Akumin,

Inc.,

7.00%,

11/01/25

(b)

........

25

23,792

Anthem,

Inc.

2.38%,

01/15/25

.................

615

634,164

4.10%,

03/01/28

.................

120

133,051

2.25%,

05/15/30

.................

15

14,946

2.75%,

10/15/42

(e)

................

44

289,124

4.65%,

01/15/43

.................

55

68,724

3.70%,

09/15/49

.................

1

1,113

3.13%,

05/15/50

.................

126

129,103

Banner

Health,

Series

2020,

3.18%,

01/01/50

25

26,407

BlackRock

Managed

Income

Fund

Schedule

of

Investments

23

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

Cano

Health

LLC,

6.25%,

10/01/28

(b)

.....

USD

47

$

47,001

Centene

Corp.

4.25%,

12/15/27

.................

207

215,798

2.45%,

07/15/28

.................

329

324,065

4.63%,

12/15/29

.................

437

471,287

3.38%,

02/15/30

.................

30

30,552

3.00%,

10/15/30

.................

241

244,979

2.50%,

03/01/31

.................

727

707,745

2.63%,

08/01/31

.................

191

187,180

Cigna

Corp.

4.13%,

11/15/25

.................

545

596,021

1.25%,

03/15/26

.................

300

295,669

4.80%,

08/15/38

.................

50

61,500

4.90%,

12/15/48

.................

145

187,358

CommonSpirit

Health

3.35%,

10/01/29

.................

200

212,676

2.78%,

10/01/30

.................

40

40,941

3.91%,

10/01/50

.................

205

228,070

Community

Health

Systems,

Inc.

(b)

6.63%,

02/15/25

.................

875

905,625

8.00%,

03/15/26

.................

231

242,839

5.63%,

03/15/27

.................

111

117,475

6.00%,

01/15/29

.................

165

175,931

6.88%,

04/15/29

.................

36

36,675

6.13%,

04/01/30

.................

113

111,793

CVS

Health

Corp.

3.88%,

07/20/25

.................

370

397,634

1.30%,

08/21/27

.................

75

72,707

4.30%,

03/25/28

.................

153

171,695

3.75%,

04/01/30

.................

250

274,088

1.88%,

02/28/31

.................

710

681,179

4.78%,

03/25/38

.................

60

73,035

5.13%,

07/20/45

.................

175

227,476

5.05%,

03/25/48

.................

265

346,471

DaVita,

Inc.,

4.63%,

06/01/30

(b)

........

4

4,095

Encompass

Health

Corp.

4.50%,

02/01/28

.................

20

20,575

4.75%,

02/01/30

.................

180

185,400

4.63%,

04/01/31

.................

75

76,312

HCA,

Inc.

5.38%,

02/01/25

.................

27

29,673

5.38%,

09/01/26

.................

185

207,894

5.63%,

09/01/28

.................

123

143,724

3.50%,

09/01/30

.................

421

444,944

5.50%,

06/15/47

.................

189

247,314

5.25%,

06/15/49

.................

215

276,129

3.50%,

07/15/51

.................

285

290,550

HealthEquity,

Inc.,

4.50%,

10/01/29

(b)

.....

148

146,520

Humana,

Inc.,

2.15%,

02/03/32

........

75

72,520

Legacy

LifePoint

Health

LLC

(b)

6.75%,

04/15/25

.................

40

41,700

4.38%,

02/15/27

.................

36

36,270

LifePoint

Health,

Inc.,

5.38%,

01/15/29

(b)

...

145

144,275

MEDNAX,

Inc.,

6.25%,

01/15/27

(b)

.......

39

40,804

ModivCare

Escrow

Issuer,

Inc.,

5.00%,

10/01/29

(b)

....................

63

64,339

ModivCare,

Inc.,

5.88%,

11/15/25

(b)

......

23

24,150

Molina

Healthcare,

Inc.

(b)

4.38%,

06/15/28

.................

70

72,100

3.88%,

11/15/30

.................

79

81,962

3.88%,

05/15/32

.................

75

75,469

Northwell

Healthcare,

Inc.,

4.26%,

11/01/47

.

19

22,431

Option

Care

Health,

Inc.,

4.38%,

10/31/29

(b)

.

50

50,125

Prime

Healthcare

Services,

Inc.,

7.25%,

11/01/25

(b)

....................

180

190,800

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

RegionalCare

Hospital

Partners

Holdings,

Inc.,

9.75%,

12/01/26

(b)

...............

USD

33

$

34,871

Surgery

Center

Holdings,

Inc.

(b)

6.75%,

07/01/25

.................

350

352,625

10.00%,

04/15/27

................

229

243,312

Sutter

Health

Series

20A,

2.29%,

08/15/30

........

223

222,676

Series

20A,

3.36%,

08/15/50

........

68

71,254

Tenet

Healthcare

Corp.

(b)

4.63%,

09/01/24

.................

19

19,428

7.50%,

04/01/25

.................

32

33,678

4.88%,

01/01/26

.................

496

509,456

5.13%,

11/01/27

.................

319

332,159

4.63%,

06/15/28

.................

12

12,330

6.13%,

10/01/28

.................

135

142,588

4.25%,

06/01/29

.................

61

61,945

UnitedHealth

Group,

Inc.

3.70%,

12/15/25

.................

140

152,235

3.10%,

03/15/26

.................

10

10,689

2.30%,

05/15/31

.................

120

122,090

3.50%,

08/15/39

.................

105

116,423

2.75%,

05/15/40

.................

105

106,594

3.05%,

05/15/41

.................

50

52,331

4.38%,

03/15/42

.................

200

243,665

4.75%,

07/15/45

.................

105

137,453

4.25%,

06/15/48

.................

20

24,774

3.70%,

08/15/49

.................

50

57,535

3.25%,

05/15/51

.................

45

48,682

3.88%,

08/15/59

.................

26

31,115

Vizient,

Inc.,

6.25%,

05/15/27

(b)

........

114

118,988

15,730,101

Health

Care

Technology

—

0.0%

IQVIA,

Inc.,

5.00%,

05/15/27

(b)

.........

200

207,060

Hotels,

Restaurants

&

Leisure

—

1.0%

1011778

BC

ULC

(b)

5.75%,

04/15/25

.................

100

103,750

3.88%,

01/15/28

.................

159

161,029

4.38%,

01/15/28

.................

260

265,200

Affinity

Gaming,

6.88%,

12/15/27

(b)

......

51

53,040

Airbnb,

Inc.,

0.00%,

03/15/26

(b)(e)(f)

.......

213

208,421

Booking

Holdings,

Inc.,

0.75%,

05/01/25

(e)

..

143

209,996

Boyd

Gaming

Corp.

8.63%,

06/01/25

(b)

................

49

52,504

4.75%,

12/01/27

.................

63

64,260

4.75%,

06/15/31

(b)

................

228

232,560

Boyne

USA,

Inc.,

4.75%,

05/15/29

(b)

.....

94

96,820

Caesars

Entertainment,

Inc.

(b)

6.25%,

07/01/25

.................

502

526,912

8.13%,

07/01/27

.................

584

646,745

4.63%,

10/15/29

.................

224

224,000

Caesars

Resort

Collection

LLC,

5.75%,

07/01/25

(b)

....................

210

219,306

Carnival

Corp.

(b)

10.50%,

02/01/26

................

176

200,903

5.75%,

03/01/27

.................

337

337,000

9.88%,

08/01/27

.................

178

203,403

4.00%,

08/01/28

.................

485

481,363

6.00%,

05/01/29

.................

204

202,980

CCM

Merger,

Inc.,

6.38%,

05/01/26

(b)

.....

54

56,228

Cedar

Fair

LP

5.50%,

05/01/25

(b)

................

251

259,785

6.50%,

10/01/28

.................

18

19,170

Churchill

Downs,

Inc.

(b)

5.50%,

04/01/27

.................

91

93,730

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

24

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

4.75%,

01/15/28

.................

USD

133

$

137,655

Everi

Holdings,

Inc.,

5.00%,

07/15/29

(b)

....

20

20,200

Expedia

Group,

Inc.

3.60%,

12/15/23

.................

65

67,534

4.50%,

08/15/24

.................

325

347,291

6.25%,

05/01/25

(b)

................

75

84,612

3.25%,

02/15/30

.................

205

209,203

2.95%,

03/15/31

.................

85

84,879

Golden

Nugget,

Inc.,

6.75%,

10/15/24

(b)

...

301

301,000

Hilton

Domestic

Operating

Co.,

Inc.

5.38%,

05/01/25

(b)

................

54

56,192

5.75%,

05/01/28

(b)

................

51

54,489

4.88%,

01/15/30

.................

384

410,400

4.00%,

05/01/31

(b)

................

36

36,812

Hilton

Worldwide

Finance

LLC,

4.88%,

04/01/27

.....................

41

42,230

Life

Time,

Inc.

(b)

5.75%,

01/15/26

.................

91

94,185

8.00%,

04/15/26

.................

67

70,211

MajorDrive

Holdings

IV

LLC,

6.38%,

06/01/29

(b)

70

67,725

McDonald's

Corp.,

1.45%,

09/01/25

......

320

322,850

MGM

Resorts

International

7.75%,

03/15/22

.................

87

88,088

6.00%,

03/15/23

.................

8

8,360

5.75%,

06/15/25

.................

29

31,211

Midwest

Gaming

Borrower

LLC,

4.88%,

05/01/29

(b)

....................

90

90,450

NCL

Corp.

Ltd.

(b)

10.25%,

02/01/26

................

19

22,100

5.88%,

03/15/26

.................

99

98,561

NCL

Finance

Ltd.,

6.13%,

03/15/28

(b)

.....

154

151,690

Peninsula

Pacific

Entertainment

LLC,

8.50%,

11/15/27

(b)

....................

83

89,640

Penn

National

Gaming,

Inc.,

4.13%,

07/01/29

(b)

34

32,980

Powdr

Corp.,

6.00%,

08/01/25

(b)

........

108

112,320

Premier

Entertainment

Sub

LLC

(b)

5.63%,

09/01/29

.................

44

43,656

5.88%,

09/01/31

.................

44

44,153

Raptor

Acquisition

Corp.,

4.88%,

11/01/26

(b)

.

67

67,670

Royal

Caribbean

Cruises

Ltd.

(b)

10.88%,

06/01/23

................

35

38,238

9.13%,

06/15/23

.................

43

45,472

11.50%,

06/01/25

................

40

44,800

5.50%,

08/31/26

.................

43

43,722

5.50%,

04/01/28

.................

178

180,058

Scientific

Games

International,

Inc.

(b)

8.63%,

07/01/25

.................

55

58,713

5.00%,

10/15/25

.................

123

126,628

8.25%,

03/15/26

.................

117

123,143

7.00%,

05/15/28

.................

97

103,305

7.25%,

11/15/29

.................

27

30,105

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

(b)

422

450,672

Station

Casinos

LLC

(b)

4.50%,

02/15/28

.................

33

33,188

4.63%,

12/01/31

.................

91

91,746

Travel

+

Leisure

Co.,

6.63%,

07/31/26

(b)

...

35

38,809

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(b)

.....

33

34,320

Viking

Ocean

Cruises

Ship

VII

Ltd.,

5.63%,

02/15/29

(b)

....................

67

66,916

Wyndham

Hotels

&

Resorts,

Inc.,

4.38%,

08/15/28

(b)

....................

49

50,470

Wynn

Las

Vegas

LLC,

5.25%,

05/15/27

(b)

..

89

90,986

Wynn

Resorts

Finance

LLC

(b)

7.75%,

04/15/25

.................

44

46,145

5.13%,

10/01/29

.................

265

268,975

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Yum!

Brands,

Inc.

4.75%,

01/15/30

(b)

................

USD

2

$

2,165

5.35%,

11/01/43

.................

14

15,481

10,191,509

Household

Durables

—

0.2%

Ashton

Woods

USA

LLC

(b)

6.63%,

01/15/28

.................

11

11,605

4.63%,

08/01/29

.................

38

37,525

4.63%,

04/01/30

.................

38

37,335

Brookfield

Residential

Properties,

Inc.

(b)

5.00%,

06/15/29

.................

79

79,055

4.88%,

02/15/30

.................

102

104,327

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(b)

72

75,600

DR

Horton,

Inc.,

1.30%,

10/15/26

.......

55

53,706

Installed

Building

Products,

Inc.,

5.75%,

02/01/28

(b)

....................

21

21,840

K.

Hovnanian

Enterprises,

Inc.,

7.75%,

02/15/26

(b)

....................

64

66,880

Lennar

Corp.,

4.50%,

04/30/24

........

100

106,218

Mattamy

Group

Corp.

(b)

5.25%,

12/15/27

.................

48

50,484

4.63%,

03/01/30

.................

20

20,369

Meritage

Homes

Corp.,

5.13%,

06/06/27

...

17

18,722

New

Home

Co.,

Inc.

(The),

7.25%,

10/15/25

(b)

22

22,440

Newell

Brands,

Inc.,

6.00%,

04/01/46

(j)

....

42

53,888

Panasonic

Corp.,

2.54%,

07/19/22

(b)

.....

200

201,586

Picasso

Finance

Sub,

Inc.,

6.13%,

06/15/25

(b)

153

159,885

SWF

Escrow

Issuer

Corp.,

6.50%,

10/01/29

(b)

104

99,965

Taylor

Morrison

Communities,

Inc.

(b)

5.88%,

06/15/27

.................

21

23,520

5.13%,

08/01/30

.................

11

12,100

Tempur

Sealy

International,

Inc.

(b)

4.00%,

04/15/29

.................

94

95,645

3.88%,

10/15/31

.................

104

104,197

TRI

Pointe

Group,

Inc.,

5.88%,

06/15/24

...

20

21,775

TRI

Pointe

Homes,

Inc.

5.25%,

06/01/27

.................

19

20,401

5.70%,

06/15/28

.................

14

15,400

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

(b)

....................

112

115,640

1,630,108

Household

Products

—

0.0%

Central

Garden

&

Pet

Co.

4.13%,

10/15/30

.................

60

60,525

4.13%,

04/30/31

(b)

................

74

74,370

Energizer

Holdings,

Inc.

(b)

4.75%,

06/15/28

.................

29

29,616

4.38%,

03/31/29

.................

6

5,856

Spectrum

Brands,

Inc.

5.75%,

07/15/25

.................

6

6,127

5.00%,

10/01/29

(b)

................

58

60,828

5.50%,

07/15/30

(b)

................

42

45,045

3.88%,

03/15/31

(b)

................

16

15,800

298,167

Independent

Power

and

Renewable

Electricity

Producers

—

0.2%

AES

Corp.

(The)

1.38%,

01/15/26

.................

390

378,478

2.45%,

01/15/31

.................

205

199,733

Alexander

Funding

Trust,

1.84%,

11/15/23

(b)

200

200,679

Calpine

Corp.

(b)

5.25%,

06/01/26

.................

4

4,104

4.50%,

02/15/28

.................

47

48,763

5.13%,

03/15/28

.................

536

544,126

5.00%,

02/01/31

.................

11

11,000

BlackRock

Managed

Income

Fund

Schedule

of

Investments

25

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Independent

Power

and

Renewable

Electricity

Producers

(continued)

3.75%,

03/01/31

.................

USD

2

$

1,927

Clearway

Energy

Operating

LLC

(b)

4.75%,

03/15/28

.................

33

34,691

3.75%,

01/15/32

.................

99

98,258

Colbun

SA,

3.15%,

01/19/32

(b)

.........

300

296,212

1,817,971

Industrial

Conglomerates

—

0.1%

GE

Capital

International

Funding

Co.

Unlimited

Co.,

4.42%,

11/15/35

.............

379

452,284

General

Electric

Co.,

6.75%,

03/15/32

....

108

147,285

Roper

Technologies,

Inc.

3.65%,

09/15/23

.................

165

171,759

1.00%,

09/15/25

.................

25

24,426

3.80%,

12/15/26

.................

50

54,772

1.75%,

02/15/31

.................

85

79,815

930,341

Insurance

—

0.8%

Acrisure

LLC,

6.00%,

08/01/29

(b)

........

87

85,913

Alliant

Holdings

Intermediate

LLC

(b)

4.25%,

10/15/27

.................

454

454,000

6.75%,

10/15/27

.................

653

677,487

5.88%,

11/01/29

.................

442

449,691

Allianz

SE

(a)(b)(g)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.97%),

3.50%

......................

400

400,500

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.17%),

3.20%

......................

400

384,000

Allstate

Corp.

(The),

Series

B,

(LIBOR

USD

3

Month

+

2.94%),

5.75%,

08/15/53

(a)

....

250

260,000

American

International

Group,

Inc.

2.50%,

06/30/25

.................

200

206,219

3.40%,

06/30/30

.................

320

346,036

4.50%,

07/16/44

.................

252

310,351

4.80%,

07/10/45

.................

58

74,317

4.75%,

04/01/48

.................

50

63,685

AmWINS

Group,

Inc.,

4.88%,

06/30/29

(b)

...

107

108,070

Aon

Corp.

3.75%,

05/02/29

.................

100

109,621

2.60%,

12/02/31

.................

215

218,739

Aon

plc,

4.45%,

05/24/43

............

140

164,233

AssuredPartners,

Inc.,

5.63%,

01/15/29

(b)

..

47

45,708

BroadStreet

Partners,

Inc.,

5.88%,

04/15/29

(b)

49

48,143

GTCR

AP

Finance,

Inc.,

8.00%,

05/15/27

(b)

.

178

184,675

Hartford

Financial

Services

Group,

Inc.

(The)

4.40%,

03/15/48

.................

20

24,493

2.90%,

09/15/51

.................

15

14,780

HUB

International

Ltd.,

7.00%,

05/01/26

(b)

..

376

386,340

Liberty

Mutual

Group,

Inc.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.32%),

4.12%,

12/15/51

(a)(b)

.......

400

399,000

Marsh

&

McLennan

Cos.,

Inc.

3.50%,

06/03/24

.................

100

105,432

3.50%,

03/10/25

.................

210

222,267

4.38%,

03/15/29

.................

75

85,492

2.25%,

11/15/30

.................

190

189,602

2.38%,

12/15/31

.................

55

55,522

Met

Tower

Global

Funding,

1.25%,

09/14/26

(b)

180

176,102

MetLife,

Inc.,

4.72%,

12/15/44

(j)

........

35

45,448

NFP

Corp.

(b)

4.88%,

08/15/28

.................

199

200,990

6.88%,

08/15/28

.................

568

569,465

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

Principal

Life

Global

Funding

II,

2.25%,

11/21/24

(b)

....................

USD

110

$

112,388

Prudential

Financial,

Inc.

3.94%,

12/07/49

.................

50

58,324

4.35%,

02/25/50

.................

95

118,501

3.70%,

03/13/51

.................

75

85,341

Teachers

Insurance

&

Annuity

Association

of

America

(b)

6.85%,

12/16/39

.................

7

10,443

4.27%,

05/15/47

.................

125

150,979

Travelers

Cos.,

Inc.

(The)

4.30%,

08/25/45

.................

35

43,180

2.55%,

04/27/50

.................

15

14,261

7,659,738

Interactive

Media

&

Services

—

0.1%

Alphabet,

Inc.

1.90%,

08/15/40

.................

280

254,968

2.05%,

08/15/50

.................

50

44,622

Rackspace

Technology

Global,

Inc.,

5.38%,

12/01/28

(b)

....................

56

54,600

Tencent

Holdings

Ltd.,

3.84%,

04/22/51

(b)

..

200

209,620

Twitter,

Inc.,

3.88%,

12/15/27

(b)

.........

110

114,634

678,444

Internet

&

Direct

Marketing

Retail

—

0.2%

Alibaba

Group

Holding

Ltd.,

3.15%,

02/09/51

300

278,625

Amazon.com,

Inc.

3.15%,

08/22/27

.................

405

437,409

3.88%,

08/22/37

.................

119

139,865

4.05%,

08/22/47

.................

30

36,373

2.50%,

06/03/50

.................

110

104,735

3.10%,

05/12/51

.................

342

365,127

2.70%,

06/03/60

.................

60

57,816

3.25%,

05/12/61

.................

245

263,729

ANGI

Group

LLC,

3.88%,

08/15/28

(b)

.....

83

81,132

eBay,

Inc.,

3.60%,

06/05/27

..........

100

108,730

Go

Daddy

Operating

Co.

LLC

(b)

5.25%,

12/01/27

.................

50

51,687

3.50%,

03/01/29

.................

43

42,671

Match

Group

Holdings

II

LLC

(b)

4.63%,

06/01/28

.................

262

272,585

4.13%,

08/01/30

.................

38

38,380

3.63%,

10/01/31

.................

41

39,821

2,318,685

IT

Services

—

0.8%

Acuris

Finance

US,

Inc.,

5.00%,

05/01/28

(b)

.

200

199,000

Ahead

DB

Holdings

LLC,

6.63%,

05/01/28

(b)

42

41,685

Arches

Buyer,

Inc.,

4.25%,

06/01/28

(b)

....

35

34,982

Austin

BidCo,

Inc.,

7.13%,

12/15/28

(b)

.....

23

23,747

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(b)

120

119,843

Booz

Allen

Hamilton,

Inc.

(b)

3.88%,

09/01/28

.................

79

80,382

4.00%,

07/01/29

.................

244

252,024

CA

Magnum

Holdings,

5.38%,

10/31/26

(b)

..

201

207,794

Cablevision

Lightpath

LLC

(b)

3.88%,

09/15/27

.................

200

194,000

5.63%,

09/15/28

.................

200

197,162

Endure

Digital,

Inc.,

6.00%,

02/15/29

(b)

....

50

46,500

Fidelity

National

Information

Services,

Inc.

1.15%,

03/01/26

.................

463

450,996

3.10%,

03/01/41

.................

80

80,776

Fiserv,

Inc.

2.75%,

07/01/24

.................

855

884,346

3.85%,

06/01/25

.................

150

160,190

3.20%,

07/01/26

.................

300

317,197

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

26

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

IT

Services

(continued)

3.50%,

07/01/29

.................

USD

100

$

107,544

4.40%,

07/01/49

.................

40

47,654

Gartner,

Inc.

(b)

4.50%,

07/01/28

.................

119

124,282

3.63%,

06/15/29

.................

96

97,061

3.75%,

10/01/30

.................

105

107,352

Global

Payments,

Inc.

3.75%,

06/01/23

.................

35

36,068

2.65%,

02/15/25

.................

145

149,013

1.20%,

03/01/26

.................

365

354,292

4.80%,

04/01/26

.................

50

55,508

2.15%,

01/15/27

.................

60

60,239

3.20%,

08/15/29

.................

252

262,473

4.15%,

08/15/49

.................

130

148,287

International

Business

Machines

Corp.

3.00%,

05/15/24

.................

440

459,626

4.15%,

05/15/39

.................

100

115,484

2.85%,

05/15/40

.................

100

98,158

4.00%,

06/20/42

.................

30

34,506

4.25%,

05/15/49

.................

250

303,215

Mastercard,

Inc.

1.90%,

03/15/31

.................

90

90,491

3.65%,

06/01/49

.................

5

5,786

3.85%,

03/26/50

.................

45

54,082

MoneyGram

International,

Inc.,

5.38%,

08/01/26

(b)

....................

40

40,600

Northwest

Fiber

LLC

(b)

4.75%,

04/30/27

.................

114

112,860

6.00%,

02/15/28

.................

77

75,460

10.75%,

06/01/28

................

22

23,980

PayPal

Holdings,

Inc.

1.65%,

06/01/25

.................

390

394,766

2.85%,

10/01/29

.................

50

52,622

2.30%,

06/01/30

.................

200

203,130

3.25%,

06/01/50

.................

145

155,309

Shift4

Payments,

Inc.,

0.00%,

12/15/25

(b)(e)(f)

.

131

138,126

Square,

Inc.,

3.50%,

06/01/31

(b)

........

226

231,650

Tempo

Acquisition

LLC,

5.75%,

06/01/25

(b)

.

101

104,535

Twilio,

Inc.,

3.88%,

03/15/31

..........

131

132,271

Visa,

Inc.

2.05%,

04/15/30

.................

30

30,387

3.65%,

09/15/47

.................

15

17,456

7,714,897

Leisure

Products

—

0.0%

Mattel,

Inc.

5.88%,

12/15/27

(b)

................

68

73,097

3.75%,

04/01/29

(b)

................

71

73,574

6.20%,

10/01/40

.................

106

137,150

5.45%,

11/01/41

.................

92

109,825

393,646

Life

Sciences

Tools

&

Services

—

0.1%

Charles

River

Laboratories

International,

Inc.

(b)

4.25%,

05/01/28

.................

46

47,840

3.75%,

03/15/29

.................

12

12,120

4.00%,

03/15/31

.................

34

34,837

PRA

Health

Sciences,

Inc.,

2.88%,

07/15/26

(b)

200

200,250

Syneos

Health,

Inc.,

3.63%,

01/15/29

(b)

...

147

145,162

Thermo

Fisher

Scientific,

Inc.,

1.22%,

10/18/24

195

194,784

634,993

Machinery

—

0.2%

Amsted

Industries,

Inc.,

5.63%,

07/01/27

(b)

.

22

22,880

ATS

Automation

Tooling

Systems,

Inc.,

4.13%,

12/15/28

(b)

....................

34

34,255

Clark

Equipment

Co.,

5.88%,

06/01/25

(b)

...

17

17,638

Security

Par

(000)

Par

(000)

Value

Machinery

(continued)

Colfax

Corp.,

6.38%,

02/15/26

(b)

........

USD

30

$

31,012

Daimler

Trucks

Finance

North

America

LLC,

2.00%,

12/14/26

(b)

...............

180

180,768

EnPro

Industries,

Inc.,

5.75%,

10/15/26

...

108

112,860

GrafTech

Finance,

Inc.,

4.63%,

12/15/28

(b)

..

44

44,660

Husky

III

Holding

Ltd.,

13.00%,

(13.00%

Cash

or

13.75%

PIK),

02/15/25

(b)(i)

.........

131

137,550

Meritor,

Inc.,

4.50%,

12/15/28

(b)

........

24

24,060

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

(b)

39

39,390

OT

Merger

Corp.,

7.88%,

10/15/29

(b)

.....

44

43,285

Otis

Worldwide

Corp.

2.57%,

02/15/30

.................

43

43,618

3.11%,

02/15/40

.................

16

16,412

Roller

Bearing

Co.

of

America,

Inc.,

4.38%,

10/15/29

(b)

....................

46

46,920

Stevens

Holding

Co.,

Inc.,

6.13%,

10/01/26

(b)

21

22,391

Terex

Corp.,

5.00%,

05/15/29

(b)

........

103

105,833

Titan

Acquisition

Ltd.,

7.75%,

04/15/26

(b)

...

352

357,280

Titan

International,

Inc.,

7.00%,

04/30/28

..

22

23,430

TK

Elevator

Holdco

GmbH,

7.63%,

07/15/28

(b)

200

214,250

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(b)

400

420,500

Wabash

National

Corp.,

4.50%,

10/15/28

(b)

.

83

83,830

2,022,822

Marine

—

0.0%

Seaspan

Corp.,

5.50%,

08/01/29

(b)

......

123

123,615

Media

—

1.9%

Advantage

Sales

&

Marketing,

Inc.,

6.50%,

11/15/28

(b)

....................

36

37,710

Altice

Financing

SA

(b)

5.00%,

01/15/28

.................

200

195,178

5.75%,

08/15/29

.................

296

293,040

AMC

Networks,

Inc.

4.75%,

08/01/25

.................

83

84,764

4.25%,

02/15/29

.................

41

40,743

Block

Communications,

Inc.,

4.88%,

03/01/28

(b)

39

39,000

Cable

One,

Inc.,

1.13%,

03/15/28

(b)(e)

.....

387

383,063

Charter

Communications

Operating

LLC

4.50%,

02/01/24

.................

1,020

1,084,751

4.91%,

07/23/25

.................

401

441,544

5.05%,

03/30/29

.................

300

343,441

2.80%,

04/01/31

.................

335

331,480

6.38%,

10/23/35

.................

99

127,883

6.48%,

10/23/45

.................

661

902,653

5.75%,

04/01/48

.................

75

93,529

5.13%,

07/01/49

.................

125

144,996

6.83%,

10/23/55

.................

12

17,162

Clear

Channel

International

BV,

6.63%,

08/01/25

(b)

....................

200

207,500

Clear

Channel

Outdoor

Holdings,

Inc.

(b)

7.75%,

04/15/28

.................

209

223,630

7.50%,

06/01/29

.................

390

416,325

Clear

Channel

Worldwide

Holdings,

Inc.,

5.13%,

08/15/27

(b)

...............

899

930,249

Comcast

Corp.

3.95%,

10/15/25

.................

530

578,617

3.15%,

02/15/28

.................

185

198,574

4.15%,

10/15/28

.................

75

85,142

2.65%,

02/01/30

.................

300

311,129

3.20%,

07/15/36

.................

200

213,295

3.75%,

04/01/40

.................

500

559,763

4.00%,

03/01/48

.................

92

105,973

2.80%,

01/15/51

.................

170

163,779

2.89%,

11/01/51

(b)

................

488

472,377

4.05%,

11/01/52

.................

150

175,190

BlackRock

Managed

Income

Fund

Schedule

of

Investments

27

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Media

(continued)

2.94%,

11/01/56

(b)

................

USD

249

$

237,181

CSC

Holdings

LLC

5.25%,

06/01/24

.................

27

28,080

5.75%,

01/15/30

(b)

................

400

398,500

4.13%,

12/01/30

(b)

................

200

195,250

4.63%,

12/01/30

(b)

................

246

232,777

DIRECTV

Holdings

LLC,

5.88%,

08/15/27

(b)

.

199

203,718

DISH

DBS

Corp.

5.88%,

07/15/22

.................

247

251,014

5.00%,

03/15/23

.................

102

104,550

7.75%,

07/01/26

.................

160

168,800

5.25%,

12/01/26

(b)

................

498

505,861

5.75%,

12/01/28

(b)

................

423

427,230

5.13%,

06/01/29

.................

164

149,240

DISH

Network

Corp.,

3.38%,

08/15/26

(e)

...

117

110,747

Fox

Corp.,

3.05%,

04/07/25

..........

125

131,211

GCI

LLC,

4.75%,

10/15/28

(b)

..........

29

29,761

Gray

Television,

Inc.,

7.00%,

05/15/27

(b)

...

27

28,856

iHeartCommunications,

Inc.,

8.38%,

05/01/27

12

12,652

Interpublic

Group

of

Cos.,

Inc.

(The)

3.38%,

03/01/41

.................

75

77,219

5.40%,

10/01/48

.................

15

20,361

LCPR

Senior

Secured

Financing

DAC

(b)

6.75%,

10/15/27

.................

180

189,000

5.13%,

07/15/29

.................

200

201,000

Liberty

Broadband

Corp.

(b)(e)

1.25%,

09/30/50

.................

141

139,026

2.75%,

09/30/50

.................

255

258,311

Midas

OpCo

Holdings

LLC,

5.63%,

08/15/29

(b)

38

38,903

Midcontinent

Communications,

5.38%,

08/15/27

(b)

....................

39

40,170

Omnicom

Group,

Inc.,

3.65%,

11/01/24

...

125

132,490

Outfront

Media

Capital

LLC

(b)

5.00%,

08/15/27

.................

72

73,676

4.25%,

01/15/29

.................

41

41,075

Radiate

Holdco

LLC

(b)

4.50%,

09/15/26

.................

365

368,650

6.50%,

09/15/28

.................

742

745,365

Scripps

Escrow

II,

Inc.,

3.88%,

01/15/29

(b)

..

4

3,995

Sinclair

Television

Group,

Inc.,

4.13%,

12/01/30

(b)

....................

109

103,277

Sirius

XM

Radio,

Inc.

(b)

3.13%,

09/01/26

.................

244

244,071

4.00%,

07/15/28

.................

192

193,073

5.50%,

07/01/29

.................

67

72,193

4.13%,

07/01/30

.................

54

54,000

3.88%,

09/01/31

.................

292

286,291

Sky

Ltd.,

3.75%,

09/16/24

(b)

...........

200

212,960

Telenet

Finance

Luxembourg

Notes

SARL,

5.50%,

03/01/28

(b)

...............

200

206,000

Terrier

Media

Buyer,

Inc.,

8.88%,

12/15/27

(b)

382

412,854

Time

Warner

Cable

LLC

5.88%,

11/15/40

.................

70

87,354

4.50%,

09/15/42

.................

37

40,338

Univision

Communications,

Inc.

(b)

5.13%,

02/15/25

.................

58

58,580

6.63%,

06/01/27

.................

63

67,882

UPC

Broadband

Finco

BV,

4.88%,

07/15/31

(b)

200

204,000

ViacomCBS,

Inc.

3.88%,

04/01/24

.................

90

94,764

4.38%,

03/15/43

.................

150

170,652

5.85%,

09/01/43

.................

50

67,350

Videotron

Ltd.,

3.63%,

06/15/29

(b)

.......

111

111,555

Virgin

Media

Vendor

Financing

Notes

IV

DAC,

5.00%,

07/15/28

(b)

...............

403

406,041

Security

Par

(000)

Par

(000)

Value

Media

(continued)

Ziggo

Bond

Co.

BV,

5.13%,

02/28/30

(b)

....

USD

200

$

201,000

Ziggo

BV,

5.50%,

01/15/27

(b)

..........

250

256,875

18,298,259

Metals

&

Mining

—

0.5%

Allegheny

Technologies,

Inc.

4.88%,

10/01/29

.................

38

38,038

5.13%,

10/01/31

.................

43

43,323

Arconic

Corp.

(b)

6.00%,

05/15/25

.................

61

63,745

6.13%,

02/15/28

.................

271

288,398

Barrick

Gold

Corp.,

5.25%,

04/01/42

.....

100

129,681

BHP

Billiton

Finance

USA

Ltd.,

5.00%,

09/30/43

50

66,122

Big

River

Steel

LLC,

6.63%,

01/31/29

(b)

...

509

550,356

Constellium

SE

(b)

5.88%,

02/15/26

.................

250

253,307

3.75%,

04/15/29

.................

500

491,948

Freeport-McMoRan,

Inc.

5.40%,

11/14/34

.................

13

15,827

5.45%,

03/15/43

.................

475

597,118

Glencore

Funding

LLC,

2.63%,

09/23/31

(b)

..

205

199,234

Joseph

T

Ryerson

&

Son,

Inc.,

8.50%,

08/01/28

(b)

....................

68

73,950

Kaiser

Aluminum

Corp.

(b)

4.63%,

03/01/28

.................

24

24,240

4.50%,

06/01/31

.................

49

48,204

New

Gold,

Inc.

(b)

6.38%,

05/15/25

.................

8

8,220

7.50%,

07/15/27

.................

266

282,625

Newmont

Corp.

2.80%,

10/01/29

.................

111

114,129

2.25%,

10/01/30

.................

50

49,296

4.88%,

03/15/42

.................

25

31,312

Novelis

Corp.

(b)

3.25%,

11/15/26

.................

170

171,488

4.75%,

01/30/30

.................

399

419,449

3.88%,

08/15/31

.................

202

200,737

Nucor

Corp.,

2.00%,

06/01/25

.........

125

127,453

Southern

Copper

Corp.,

5.88%,

04/23/45

..

75

102,459

Steel

Dynamics,

Inc.

2.40%,

06/15/25

.................

20

20,462

1.65%,

10/15/27

.................

115

112,469

3.25%,

10/15/50

.................

100

100,783

United

States

Steel

Corp.,

6.88%,

03/01/29

.

145

156,056

4,780,429

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.,

5.50%,

11/01/23

(b)

....................

10

10,350

Multiline

Retail

—

0.0%

NMG

Holding

Co.,

Inc.,

7.13%,

04/01/26

(b)

..

135

143,285

Multi-Utilities

—

0.3%

Berkshire

Hathaway

Energy

Co.,

2.85%,

05/15/51

.....................

50

48,121

CMS

Energy

Corp.

3.00%,

05/15/26

.................

125

130,339

3.45%,

08/15/27

.................

100

107,243

Consumers

Energy

Co.

3.25%,

08/15/46

.................

50

52,911

3.10%,

08/15/50

.................

80

83,298

2.50%,

05/01/60

.................

105

92,564

Dominion

Energy,

Inc.

3.07%,

08/15/24

(j)

................

35

36,228

3.90%,

10/01/25

.................

120

129,422

Series

A,

1.45%,

04/15/26

..........

150

148,264

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

28

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Multi-Utilities

(continued)

Series

C,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.20%),

4.35%

(a)(g)

....................

USD

365

$

376,863

Series

C,

3.38%,

04/01/30

..........

100

106,121

NiSource,

Inc.

0.95%,

08/15/25

.................

140

136,271

3.60%,

05/01/30

.................

30

32,335

4.80%,

02/15/44

.................

107

131,086

4.38%,

05/15/47

.................

50

58,873

Puget

Sound

Energy,

Inc.,

4.22%,

06/15/48

.

25

29,556

San

Diego

Gas

&

Electric

Co.,

2.95%,

08/15/51

75

75,477

Sempra

Energy

3.25%,

06/15/27

.................

50

52,736

3.40%,

02/01/28

.................

440

468,387

3.80%,

02/01/38

.................

150

164,584

2,460,679

Oil,

Gas

&

Consumable

Fuels

—

3.7%

Aethon

United

BR

LP,

8.25%,

02/15/26

(b)

...

289

310,444

Antero

Midstream

Partners

LP

(b)

5.75%,

03/01/27

.................

76

78,755

5.75%,

01/15/28

.................

19

19,924

5.38%,

06/15/29

.................

78

82,291

Antero

Resources

Corp.

(b)

7.63%,

02/01/29

.................

67

74,370

5.38%,

03/01/30

.................

30

32,070

Apache

Corp.

4.25%,

01/15/30

.................

93

100,923

5.10%,

09/01/40

.................

242

273,460

5.25%,

02/01/42

.................

13

15,015

5.35%,

07/01/49

.................

16

18,280

Ascent

Resources

Utica

Holdings

LLC

(b)

9.00%,

11/01/27

.................

144

192,240

5.88%,

06/30/29

.................

206

198,211

Bonanza

Creek

Energy,

Inc.,

5.00%,

10/15/26

(b)

34

34,333

BP

Capital

Markets

America,

Inc.

3.79%,

02/06/24

.................

85

89,478

3.54%,

04/06/27

.................

175

188,998

3.59%,

04/14/27

.................

35

37,796

3.94%,

09/21/28

.................

50

55,330

4.23%,

11/06/28

.................

135

152,379

1.75%,

08/10/30

.................

110

105,776

3.06%,

06/17/41

.................

455

460,464

3.38%,

02/08/61

.................

25

25,684

BP

Capital

Markets

plc

3.81%,

02/10/24

.................

70

73,811

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.04%),

4.38%

(a)(g)

....................

350

365,750

3.28%,

09/19/27

.................

16

17,189

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.40%),

4.88%

(a)(g)

....................

300

324,000

Buckeye

Partners

LP

4.13%,

03/01/25

(b)

................

7

7,227

5.85%,

11/15/43

.................

34

33,363

5.60%,

10/15/44

.................

38

37,001

Callon

Petroleum

Co.

6.13%,

10/01/24

.................

48

47,280

9.00%,

04/01/25

(b)

................

343

370,440

8.00%,

08/01/28

(b)

................

280

282,800

Cameron

LNG

LLC,

3.30%,

01/15/35

(b)

....

140

146,132

Canadian

Natural

Resources

Ltd.,

2.95%,

01/15/23

.....................

65

66,238

Cenovus

Energy,

Inc.,

3.75%,

02/15/52

...

115

115,280

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Centennial

Resource

Production

LLC,

3.25%,

04/01/28

(e)

....................

USD

180

$

223,088

Cheniere

Corpus

Christi

Holdings

LLC

5.88%,

03/31/25

.................

365

404,529

5.13%,

06/30/27

.................

150

169,248

Cheniere

Energy

Partners

LP

4.50%,

10/01/29

.................

238

252,280

4.00%,

03/01/31

.................

265

277,972

3.25%,

01/31/32

(b)

................

242

244,420

Cheniere

Energy,

Inc.,

4.63%,

10/15/28

...

832

885,015

Chesapeake

Energy

Corp.,

5.88%,

02/01/29

(b)

16

17,116

Chevron

Corp.,

1.55%,

05/11/25

........

235

236,992

CITGO

Petroleum

Corp.

(b)

7.00%,

06/15/25

.................

63

64,833

6.38%,

06/15/26

.................

116

117,740

CNX

Midstream

Partners

LP,

4.75%,

04/15/30

(b)

35

34,869

CNX

Resources

Corp.

2.25%,

05/01/26

(e)

................

188

245,716

6.00%,

01/15/29

(b)

................

43

44,720

Colgate

Energy

Partners

III

LLC

(b)

7.75%,

02/15/26

.................

92

99,360

5.88%,

07/01/29

.................

172

177,160

Comstock

Resources,

Inc.

(b)

7.50%,

05/15/25

.................

48

49,500

6.75%,

03/01/29

.................

274

297,180

5.88%,

01/15/30

.................

130

133,250

ConocoPhillips

(b)

2.40%,

02/15/31

.................

30

30,095

4.85%,

08/15/48

.................

50

65,434

Coterra

Energy,

Inc.,

4.38%,

06/01/24

(b)

...

130

137,478

CQP

Holdco

LP,

5.50%,

06/15/31

(b)

......

250

260,937

Crestwood

Midstream

Partners

LP,

6.00%,

02/01/29

(b)

....................

3

3,116

CrownRock

LP,

5.63%,

10/15/25

(b)

......

354

361,965

DCP

Midstream

Operating

LP

6.45%,

11/03/36

(b)

................

78

102,077

6.75%,

09/15/37

(b)

................

54

72,233

5.60%,

04/01/44

.................

10

12,440

Devon

Energy

Corp.

5.25%,

10/15/27

.................

300

316,468

4.75%,

05/15/42

.................

93

107,678

Diamondback

Energy,

Inc.

2.88%,

12/01/24

.................

780

809,183

4.75%,

05/31/25

.................

110

120,498

3.50%,

12/01/29

.................

475

503,693

3.13%,

03/24/31

.................

50

51,533

DT

Midstream,

Inc.

(b)

4.13%,

06/15/29

.................

163

166,871

4.38%,

06/15/31

.................

278

289,120

Eastern

Gas

Transmission

&

Storage,

Inc.,

4.60%,

12/15/44

(b)

...............

50

59,438

Enbridge

Energy

Partners

LP,

7.38%,

10/15/45

50

77,972

Enbridge,

Inc.

4.00%,

10/01/23

.................

200

208,811

0.55%,

10/04/23

.................

105

104,183

2.50%,

01/15/25

.................

305

313,426

3.70%,

07/15/27

.................

50

53,909

Series

16-A,

(LIBOR

USD

3

Month

+

3.89%),

6.00%,

01/15/77

(a)

........

775

832,460

Energy

Transfer

LP

5.00%,

10/01/22

.................

55

56,093

3.60%,

02/01/23

.................

30

30,582

5.88%,

01/15/24

.................

585

629,619

4.90%,

02/01/24

.................

330

349,092

4.25%,

04/01/24

.................

450

472,426

BlackRock

Managed

Income

Fund

Schedule

of

Investments

29

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.69%),

6.50%

(a)(g)

....................

USD

436

$

443,630

4.00%,

10/01/27

.................

90

96,634

5.25%,

04/15/29

.................

50

57,270

3.75%,

05/15/30

.................

135

143,053

6.50%,

02/01/42

.................

110

141,717

5.95%,

10/01/43

.................

60

72,112

5.35%,

05/15/45

.................

50

57,422

5.30%,

04/15/47

.................

40

46,351

5.40%,

10/01/47

.................

200

234,693

6.25%,

04/15/49

.................

595

777,226

EnLink

Midstream

LLC,

5.63%,

01/15/28

(b)

.

55

57,200

EnLink

Midstream

Partners

LP

4.40%,

04/01/24

.................

78

81,510

4.15%,

06/01/25

.................

38

39,385

4.85%,

07/15/26

.................

79

83,148

5.60%,

04/01/44

.................

7

7,060

5.05%,

04/01/45

.................

4

3,860

Enterprise

Products

Operating

LLC

3.90%,

02/15/24

.................

220

230,995

3.13%,

07/31/29

.................

171

181,585

6.45%,

09/01/40

.................

106

146,547

5.95%,

02/01/41

.................

65

86,278

4.45%,

02/15/43

.................

150

171,124

4.90%,

05/15/46

.................

40

48,367

4.25%,

02/15/48

.................

145

164,120

4.80%,

02/01/49

.................

25

30,425

4.20%,

01/31/50

.................

60

67,260

3.70%,

01/31/51

.................

75

78,685

3.30%,

02/15/53

.................

70

69,621

3.95%,

01/31/60

.................

60

64,776

EOG

Resources,

Inc.

4.38%,

04/15/30

.................

40

46,223

4.95%,

04/15/50

.................

20

27,170

EQM

Midstream

Partners

LP

6.00%,

07/01/25

(b)

................

72

78,300

4.13%,

12/01/26

.................

12

12,300

6.50%,

07/01/27

(b)

................

178

199,360

4.50%,

01/15/29

(b)

................

114

118,560

4.75%,

01/15/31

(b)

................

270

285,525

EQT

Corp.

1.75%,

05/01/26

(e)

................

147

244,975

3.13%,

05/15/26

(b)

................

102

104,706

3.90%,

10/01/27

.................

137

146,935

5.00%,

01/15/29

.................

14

15,505

7.50%,

02/01/30

(j)

................

73

93,805

3.63%,

05/15/31

(b)

................

19

19,713

Exxon

Mobil

Corp.

2.99%,

03/19/25

.................

55

57,801

3.04%,

03/01/26

.................

10

10,579

3.45%,

04/15/51

.................

150

162,490

Genesis

Energy

LP,

7.75%,

02/01/28

.....

18

18,135

Great

Western

Petroleum

LLC,

12.00%,

09/01/25

(b)

....................

26

27,300

Harvest

Midstream

I

LP,

7.50%,

09/01/28

(b)

.

20

21,400

Hess

Corp.

4.30%,

04/01/27

.................

300

326,716

5.60%,

02/15/41

.................

202

249,381

5.80%,

04/01/47

.................

112

143,085

Hess

Midstream

Operations

LP,

4.25%,

02/15/30

(b)

....................

96

95,280

HollyFrontier

Corp.,

2.63%,

10/01/23

.....

155

157,924

Howard

Midstream

Energy

Partners

LLC,

6.75%,

01/15/27

(b)

...............

20

20,494

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Independence

Energy

Finance

LLC,

7.25%,

05/01/26

(b)

....................

USD

186

$

193,208

ITT

Holdings

LLC,

6.50%,

08/01/29

(b)

.....

130

128,700

Kinder

Morgan

Energy

Partners

LP

4.25%,

09/01/24

.................

360

383,707

6.95%,

01/15/38

.................

145

200,621

6.38%,

03/01/41

.................

97

128,541

5.50%,

03/01/44

.................

70

85,812

Kinder

Morgan,

Inc.

3.15%,

01/15/23

.................

315

321,650

4.30%,

06/01/25

.................

215

232,338

5.55%,

06/01/45

.................

184

232,635

5.20%,

03/01/48

.................

62

76,579

3.60%,

02/15/51

.................

100

100,567

Marathon

Oil

Corp.

4.40%,

07/15/27

.................

291

318,755

6.60%,

10/01/37

.................

5

6,533

5.20%,

06/01/45

.................

10

11,967

Marathon

Petroleum

Corp.

4.70%,

05/01/25

.................

35

38,182

4.75%,

09/15/44

.................

54

63,548

Matador

Resources

Co.,

5.88%,

09/15/26

..

330

339,900

MPLX

LP

3.50%,

12/01/22

.................

210

214,445

3.38%,

03/15/23

.................

50

51,271

1.75%,

03/01/26

.................

565

559,316

4.13%,

03/01/27

.................

190

207,874

4.00%,

03/15/28

.................

70

75,856

4.70%,

04/15/48

.................

20

23,075

Murphy

Oil

Corp.

5.75%,

08/15/25

.................

24

24,669

6.37%,

12/01/42

(j)

................

5

5,000

New

Fortress

Energy,

Inc.

(b)

6.75%,

09/15/25

.................

375

378,750

6.50%,

09/30/26

.................

390

387,075

NGL

Energy

Operating

LLC,

7.50%,

02/01/26

(b)

128

132,006

Northern

Oil

and

Gas,

Inc.,

8.13%,

03/01/28

(b)

246

259,530

NuStar

Logistics

LP

5.75%,

10/01/25

.................

42

45,197

6.00%,

06/01/26

.................

39

42,315

6.38%,

10/01/30

.................

6

6,660

Occidental

Petroleum

Corp.

6.95%,

07/01/24

.................

21

23,348

5.50%,

12/01/25

.................

32

35,500

5.55%,

03/15/26

.................

11

12,246

8.88%,

07/15/30

.................

2

2,697

6.45%,

09/15/36

.................

25

31,875

4.30%,

08/15/39

.................

139

138,621

6.20%,

03/15/40

.................

299

367,770

4.50%,

07/15/44

.................

199

204,971

4.63%,

06/15/45

.................

475

492,813

6.60%,

03/15/46

.................

9

11,678

4.40%,

04/15/46

.................

294

301,350

4.10%,

02/15/47

.................

27

26,460

4.20%,

03/15/48

.................

250

250,000

4.40%,

08/15/49

.................

30

30,375

Ovintiv

Exploration,

Inc.,

5.38%,

01/01/26

..

12

13,302

Parkland

Corp.,

5.88%,

07/15/27

(b)

......

48

50,640

PDC

Energy,

Inc.,

6.13%,

09/15/24

......

17

17,212

Phillips

66,

0.90%,

02/15/24

..........

145

143,924

Pioneer

Natural

Resources

Co.

0.55%,

05/15/23

.................

170

169,350

0.25%,

05/15/25

(e)

................

106

188,879

1.13%,

01/15/26

.................

265

257,316

4.45%,

01/15/26

.................

50

54,557

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

30

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

1.90%,

08/15/30

.................

USD

65

$

61,733

2.15%,

01/15/31

.................

115

110,955

Plains

All

American

Pipeline

LP

3.65%,

06/01/22

.................

200

200,982

4.30%,

01/31/43

.................

120

120,299

Range

Resources

Corp.

4.88%,

05/15/25

.................

11

11,357

9.25%,

02/01/26

.................

21

22,634

Rockcliff

Energy

II

LLC,

5.50%,

10/15/29

(b)

.

121

124,630

Sabine

Pass

Liquefaction

LLC

5.75%,

05/15/24

.................

255

277,325

5.63%,

03/01/25

.................

210

233,147

4.20%,

03/15/28

.................

95

104,060

SM

Energy

Co.

10.00%,

01/15/25

(b)

...............

220

242,141

5.63%,

06/01/25

.................

22

22,165

6.75%,

09/15/26

.................

38

39,045

6.50%,

07/15/28

.................

28

28,980

Southwestern

Energy

Co.

6.45%,

01/23/25

(j)

................

4

4,396

5.38%,

02/01/29

.................

173

182,948

4.75%,

02/01/32

.................

88

92,673

Spectra

Energy

Partners

LP

3.50%,

03/15/25

.................

300

315,389

3.38%,

10/15/26

.................

145

153,725

Summit

Midstream

Holdings

LLC,

8.50%,

10/15/26

(b)

....................

51

53,138

Sunoco

LP

6.00%,

04/15/27

.................

11

11,472

5.88%,

03/15/28

.................

22

23,265

Tap

Rock

Resources

LLC,

7.00%,

10/01/26

(b)

314

326,560

Targa

Resources

Partners

LP

6.50%,

07/15/27

.................

45

48,240

6.88%,

01/15/29

.................

55

61,533

5.50%,

03/01/30

.................

207

226,148

4.88%,

02/01/31

.................

131

142,259

Tennessee

Gas

Pipeline

Co.

LLC,

7.00%,

10/15/28

.....................

9

11,483

TerraForm

Power

Operating

LLC,

4.75%,

01/15/30

(b)

....................

35

36,693

TotalEnergies

Capital

International

SA,

3.13%,

05/29/50

.....................

78

79,952

TransCanada

PipeLines

Ltd.

4.63%,

03/01/34

.................

15

17,610

7.63%,

01/15/39

.................

20

31,122

Transcontinental

Gas

Pipe

Line

Co.

LLC,

4.00%,

03/15/28

................

140

152,975

Valero

Energy

Corp.,

4.00%,

04/01/29

....

20

21,763

Venture

Global

Calcasieu

Pass

LLC

(b)

3.88%,

08/15/29

.................

297

308,138

4.13%,

08/15/31

.................

270

286,200

3.88%,

11/01/33

.................

626

657,663

Vine

Energy

Holdings

LLC,

6.75%,

04/15/29

(b)

240

260,400

Western

Midstream

Operating

LP

4.75%,

08/15/28

.................

8

8,840

5.45%,

04/01/44

.................

296

353,720

5.30%,

03/01/48

.................

73

87,965

5.50%,

08/15/48

.................

23

27,474

6.50%,

02/01/50

(j)

................

396

468,272

Williams

Cos.,

Inc.

(The)

3.35%,

08/15/22

.................

260

262,436

3.70%,

01/15/23

.................

225

229,962

4.30%,

03/04/24

.................

125

131,903

4.55%,

06/24/24

.................

150

160,515

3.90%,

01/15/25

.................

100

106,266

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

3.75%,

06/15/27

.................

USD

195

$

210,518

36,626,501

Paper

&

Forest

Products

—

0.0%

Georgia-Pacific

LLC

(b)

3.73%,

07/15/23

.................

25

25,886

1.75%,

09/30/25

.................

160

160,627

0.95%,

05/15/26

.................

175

169,713

Suzano

Austria

GmbH,

2.50%,

09/15/28

...

115

110,939

467,165

Personal

Products

—

0.0%

(b)

Coty,

Inc.,

4.75%,

01/15/29

...........

57

57,926

Prestige

Brands,

Inc.,

3.75%,

04/01/31

....

52

50,440

108,366

Pharmaceuticals

—

0.8%

Astrazeneca

Finance

LLC

0.70%,

05/28/24

.................

600

595,222

2.25%,

05/28/31

.................

45

45,315

Bausch

Health

Americas,

Inc.,

8.50%,

01/31/27

(b)

....................

37

38,850

Bausch

Health

Cos.,

Inc.

(b)

9.00%,

12/15/25

.................

109

114,797

4.88%,

06/01/28

.................

43

43,860

5.00%,

02/15/29

.................

170

150,025

6.25%,

02/15/29

.................

180

171,043

7.25%,

05/30/29

.................

245

242,550

Bayer

US

Finance

II

LLC

(b)

2.20%,

07/15/22

.................

30

30,091

4.25%,

12/15/25

.................

400

432,635

Bayer

US

Finance

LLC,

3.38%,

10/08/24

(b)

.

400

418,076

Bristol-Myers

Squibb

Co.

2.90%,

07/26/24

.................

61

63,832

3.40%,

07/26/29

.................

30

32,850

Catalent

Pharma

Solutions,

Inc.

(b)

5.00%,

07/15/27

.................

101

104,939

3.13%,

02/15/29

.................

63

62,143

3.50%,

04/01/30

.................

210

209,405

Elanco

Animal

Health,

Inc.,

5.90%,

08/28/28

(j)

8

9,280

Endo

DAC,

9.50%,

07/31/27

(b)

.........

238

242,265

Endo

Luxembourg

Finance

Co.

I

SARL,

6.13%,

04/01/29

(b)

....................

231

226,380

Jazz

Securities

DAC,

4.38%,

01/15/29

(b)

...

203

210,194

Johnson

&

Johnson

3.55%,

03/01/36

.................

25

28,597

3.63%,

03/03/37

.................

100

114,800

Merck

&

Co.,

Inc.

3.40%,

03/07/29

.................

50

54,394

2.15%,

12/10/31

.................

220

220,614

2.75%,

12/10/51

.................

90

89,054

Organon

&

Co.

(b)

4.13%,

04/30/28

.................

404

410,565

5.13%,

04/30/31

.................

200

208,936

P&L

Development

LLC,

7.75%,

11/15/25

(b)

..

96

96,120

Par

Pharmaceutical,

Inc.,

7.50%,

04/01/27

(b)

529

540,601

Roche

Holdings,

Inc.,

2.61%,

12/13/51

(b)

...

270

265,141

Shire

Acquisitions

Investments

Ireland

DAC

2.88%,

09/23/23

.................

945

971,912

3.20%,

09/23/26

.................

300

318,200

Takeda

Pharmaceutical

Co.

Ltd.

4.40%,

11/26/23

.................

425

449,691

3.18%,

07/09/50

.................

200

201,600

Teva

Pharmaceutical

Finance

Netherlands

III

BV,

6.00%,

04/15/24

.............

405

424,877

BlackRock

Managed

Income

Fund

Schedule

of

Investments

31

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Pharmaceuticals

(continued)

Wyeth

LLC,

5.95%,

04/01/37

..........

USD

70

$

98,582

7,937,436

Professional

Services

—

0.1%

AMN

Healthcare,

Inc.,

4.00%,

04/15/29

(b)

..

29

29,399

ASGN,

Inc.,

4.63%,

05/15/28

(b)

.........

18

18,635

CoreLogic,

Inc.,

4.50%,

05/01/28

(b)

......

221

220,160

Dun

&

Bradstreet

Corp.

(The)

(b)

6.88%,

08/15/26

.................

157

163,280

5.00%,

12/15/29

.................

138

141,178

Science

Applications

International

Corp.,

4.88%,

04/01/28

(b)

...............

23

23,575

Verisk

Analytics,

Inc.,

4.13%,

09/12/22

....

50

51,135

647,362

Real

Estate

Management

&

Development

—

0.1%

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

(b)

...............

95

101,650

Five

Point

Operating

Co.

LP,

7.88%,

11/15/25

(b)

141

147,077

Forestar

Group,

Inc.,

3.85%,

05/15/26

(b)

...

36

36,090

Howard

Hughes

Corp.

(The)

(b)

5.38%,

08/01/28

.................

6

6,390

4.13%,

02/01/29

.................

117

118,562

4.38%,

02/01/31

.................

81

81,810

Kennedy-Wilson,

Inc.,

4.75%,

02/01/30

...

52

52,713

Realogy

Group

LLC

(b)

7.63%,

06/15/25

.................

9

9,540

5.75%,

01/15/29

.................

97

99,425

WeWork

Cos.

LLC,

5.00%,

07/10/25

(b)

....

127

110,251

Zillow

Group,

Inc.,

1.38%,

09/01/26

(e)

.....

21

33,745

797,253

Road

&

Rail

—

0.7%

Avis

Budget

Car

Rental

LLC,

5.38%,

03/01/29

(b)

37

39,028

Burlington

Northern

Santa

Fe

LLC

5.75%,

05/01/40

.................

5

6,940

5.15%,

09/01/43

.................

125

167,405

4.90%,

04/01/44

.................

90

117,577

3.55%,

02/15/50

.................

75

84,005

3.30%,

09/15/51

.................

75

81,421

2.88%,

06/15/52

.................

90

90,017

Canadian

Pacific

Railway

Co.

1.75%,

12/02/26

.................

45

45,162

2.05%,

03/05/30

.................

30

29,568

3.00%,

12/02/41

.................

110

112,483

3.10%,

12/02/51

.................

120

123,399

CSX

Corp.

3.25%,

06/01/27

.................

60

64,338

3.80%,

03/01/28

.................

75

82,418

4.30%,

03/01/48

.................

80

97,650

2.50%,

05/15/51

.................

75

69,292

Hertz

Corp.

(The)

(b)

4.63%,

12/01/26

.................

47

47,294

5.00%,

12/01/29

.................

75

75,064

NESCO

Holdings

II,

Inc.,

5.50%,

04/15/29

(b)

.

81

83,633

Norfolk

Southern

Corp.

2.90%,

06/15/26

.................

175

184,614

3.80%,

08/01/28

.................

160

176,597

2.55%,

11/01/29

.................

70

71,642

4.15%,

02/28/48

.................

30

35,742

3.05%,

05/15/50

.................

205

208,812

PECF

USS

Intermediate

Holding

III

Corp.,

8.00%,

11/15/29

(b)

...............

84

86,982

Penske

Truck

Leasing

Co.

LP

(b)

2.70%,

03/14/23

.................

265

270,076

3.90%,

02/01/24

.................

345

362,425

4.00%,

07/15/25

.................

820

880,109

Security

Par

(000)

Par

(000)

Value

Road

&

Rail

(continued)

1.20%,

11/15/25

.................

USD

100

$

97,429

4.20%,

04/01/27

.................

100

110,164

Ryder

System,

Inc.

3.40%,

03/01/23

.................

100

102,593

3.88%,

12/01/23

.................

250

262,544

3.65%,

03/18/24

.................

125

131,464

SMBC

Aviation

Capital

Finance

DAC,

1.90%,

10/15/26

(b)

....................

200

198,069

Uber

Technologies,

Inc.

7.50%,

05/15/25

(b)

................

91

95,630

0.00%,

12/15/25

(e)(f)

...............

596

584,974

8.00%,

11/01/26

(b)

................

26

27,690

7.50%,

09/15/27

(b)

................

250

272,074

6.25%,

01/15/28

(b)

................

140

150,290

4.50%,

08/15/29

(b)

................

245

249,493

Union

Pacific

Corp.

3.25%,

08/15/25

.................

100

106,126

3.55%,

08/15/39

.................

115

127,441

4.30%,

03/01/49

.................

10

12,420

3.80%,

10/01/51

.................

80

93,070

3.95%,

08/15/59

.................

25

29,565

3.84%,

03/20/60

.................

118

138,927

3.84%,

03/20/60

(b)

................

100

117,735

6,601,391

Semiconductors

&

Semiconductor

Equipment

—

0.8%

Analog

Devices,

Inc.

2.80%,

10/01/41

.................

70

70,800

2.95%,

10/01/51

.................

70

71,885

Applied

Materials,

Inc.,

3.30%,

04/01/27

...

280

302,323

Broadcom

Corp.,

3.88%,

01/15/27

......

375

406,609

Broadcom,

Inc.

4.70%,

04/15/25

.................

580

634,133

3.15%,

11/15/25

.................

230

240,798

4.75%,

04/15/29

.................

450

512,235

4.15%,

11/15/30

.................

245

271,719

3.42%,

04/15/33

(b)

................

630

660,430

Entegris,

Inc.

(b)

4.38%,

04/15/28

.................

55

56,512

3.63%,

05/01/29

.................

37

37,093

Intel

Corp.

2.45%,

11/15/29

.................

84

86,894

2.80%,

08/12/41

.................

35

34,914

4.75%,

03/25/50

.................

10

13,317

3.05%,

08/12/51

.................

155

158,548

3.10%,

02/15/60

.................

20

19,985

3.20%,

08/12/61

.................

55

56,323

KLA

Corp.

4.65%,

11/01/24

.................

144

156,116

4.10%,

03/15/29

.................

185

208,825

3.30%,

03/01/50

.................

268

286,348

Lam

Research

Corp.

3.80%,

03/15/25

.................

270

290,351

3.75%,

03/15/26

.................

110

119,741

1.90%,

06/15/30

.................

15

14,751

2.88%,

06/15/50

.................

50

49,820

Microchip

Technology,

Inc.

(e)

0.13%,

11/15/24

.................

97

120,037

1.63%,

02/15/25

.................

15

58,115

1.63%,

02/15/27

.................

36

91,575

NVIDIA

Corp.,

3.50%,

04/01/40

........

152

170,819

NXP

BV

(b)

4.88%,

03/01/24

.................

335

360,188

2.70%,

05/01/25

.................

235

242,608

5.35%,

03/01/26

.................

100

112,737

3.15%,

05/01/27

.................

100

105,118

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

32

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Semiconductors

&

Semiconductor

Equipment

(continued)

5.55%,

12/01/28

.................

USD

120

$

143,798

4.30%,

06/18/29

.................

76

85,063

2.50%,

05/11/31

.................

760

759,985

2.65%,

02/15/32

.................

170

170,244

3.25%,

05/11/41

.................

90

92,042

ON

Semiconductor

Corp.,

3.88%,

09/01/28

(b)

70

71,750

QUALCOMM,

Inc.

4.80%,

05/20/45

.................

50

66,246

4.30%,

05/20/47

.................

129

161,532

Synaptics,

Inc.,

4.00%,

06/15/29

(b)

.......

66

66,990

Texas

Instruments,

Inc.

1.13%,

09/15/26

.................

25

24,758

2.70%,

09/15/51

.................

80

80,002

TSMC

Arizona

Corp.,

3.25%,

10/25/51

....

200

210,460

7,954,537

Software

—

1.0%

ACI

Worldwide,

Inc.,

5.75%,

08/15/26

(b)

...

128

133,440

Autodesk,

Inc.

3.60%,

12/15/22

.................

50

51,009

3.50%,

06/15/27

.................

75

80,591

2.40%,

12/15/31

.................

365

363,935

Boxer

Parent

Co.,

Inc.

(b)

7.13%,

10/02/25

.................

105

110,119

9.13%,

03/01/26

.................

268

279,390

Camelot

Finance

SA,

4.50%,

11/01/26

(b)

...

158

163,530

Castle

US

Holding

Corp.,

9.50%,

02/15/28

(b)

54

56,295

Change

Healthcare

Holdings

LLC,

5.75%,

03/01/25

(b)

....................

535

539,590

Clarivate

Science

Holdings

Corp.

(b)

3.88%,

07/01/28

.................

148

148,740

4.88%,

07/01/29

.................

221

224,121

Consensus

Cloud

Solutions,

Inc.

(b)

6.00%,

10/15/26

.................

27

28,083

6.50%,

10/15/28

.................

24

25,080

Crowdstrike

Holdings,

Inc.,

3.00%,

02/15/29

107

105,662

Elastic

NV,

4.13%,

07/15/29

(b)

.........

142

140,492

Fair

Isaac

Corp.,

4.00%,

06/15/28

(b)

......

77

79,151

Microsoft

Corp.

3.45%,

08/08/36

.................

129

148,485

4.25%,

02/06/47

.................

50

64,524

2.53%,

06/01/50

.................

151

147,254

2.92%,

03/17/52

.................

561

595,624

MicroStrategy,

Inc.,

6.13%,

06/15/28

(b)

....

121

121,302

NCR

Corp.

(b)

5.00%,

10/01/28

.................

35

36,050

5.13%,

04/15/29

.................

71

73,499

6.13%,

09/01/29

.................

173

184,875

Open

Text

Corp.,

3.88%,

12/01/29

(b)

.....

59

59,737

Open

Text

Holdings,

Inc.,

4.13%,

02/15/30

(b)

77

79,310

Oracle

Corp.

2.50%,

04/01/25

.................

230

235,389

1.65%,

03/25/26

.................

755

749,162

2.65%,

07/15/26

.................

65

66,800

2.95%,

04/01/30

.................

250

252,842

3.90%,

05/15/35

.................

25

26,776

3.85%,

07/15/36

.................

5

5,282

3.60%,

04/01/40

.................

300

300,856

3.65%,

03/25/41

.................

136

137,514

4.13%,

05/15/45

.................

100

105,494

4.00%,

07/15/46

.................

164

170,219

4.00%,

11/15/47

.................

285

295,900

3.60%,

04/01/50

.................

705

690,293

3.95%,

03/25/51

.................

166

172,326

3.85%,

04/01/60

.................

80

78,996

PTC,

Inc.,

4.00%,

02/15/28

(b)

..........

95

96,662

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Rocket

Software,

Inc.,

6.50%,

02/15/29

(b)

..

USD

53

$

51,707

salesforce.com,

Inc.

0.63%,

07/15/24

.................

115

113,929

2.70%,

07/15/41

.................

95

94,879

2.90%,

07/15/51

.................

105

106,859

3.05%,

07/15/61

.................

80

82,278

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(b)

492

514,140

Veritas

US,

Inc.,

7.50%,

09/01/25

(b)

......

563

582,705

VMware,

Inc.

1.40%,

08/15/26

.................

180

176,901

2.20%,

08/15/31

.................

590

579,495

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(b)

175

173,495

9,900,787

Specialty

Retail

—

0.5%

Arko

Corp.,

5.13%,

11/15/29

(b)

.........

69

66,671

Asbury

Automotive

Group,

Inc.

4.50%,

03/01/28

.................

23

23,460

4.75%,

03/01/30

.................

31

31,504

5.00%,

02/15/32

(b)

................

60

62,262

Carvana

Co.

(b)

5.50%,

04/15/27

.................

132

130,680

4.88%,

09/01/29

.................

84

80,010

eG

Global

Finance

plc,

6.75%,

02/07/25

(b)

..

400

405,000

Group

1

Automotive,

Inc.,

4.00%,

08/15/28

(b)

28

27,895

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

(b)

..

90

90,225

Home

Depot,

Inc.

(The)

0.90%,

03/15/28

.................

150

143,119

2.70%,

04/15/30

.................

100

104,924

4.25%,

04/01/46

.................

40

49,782

3.90%,

06/15/47

.................

75

87,620

4.50%,

12/06/48

.................

120

155,148

3.35%,

04/15/50

.................

190

207,207

Ken

Garff

Automotive

LLC,

4.88%,

09/15/28

(b)

39

39,049

L

Brands,

Inc.,

6.88%,

11/01/35

........

82

101,885

LBM

Acquisition

LLC,

6.25%,

01/15/29

(b)

...

198

195,772

LCM

Investments

Holdings

II

LLC,

4.88%,

05/01/29

(b)

....................

111

114,072

Lithia

Motors,

Inc.,

3.88%,

06/01/29

(b)

.....

50

51,045

Lowe's

Cos.,

Inc.

3.70%,

04/15/46

.................

237

259,783

4.55%,

04/05/49

.................

70

87,734

5.13%,

04/15/50

.................

25

33,828

3.00%,

10/15/50

.................

235

231,757

Murphy

Oil

USA,

Inc.,

4.75%,

09/15/29

....

34

35,785

National

Vision

Holdings,

Inc.,

2.50%,

05/15/25

(e)

....................

92

153,813

Penske

Automotive

Group,

Inc.

3.50%,

09/01/25

.................

14

14,315

3.75%,

06/15/29

.................

26

25,773

PetSmart,

Inc.,

7.75%,

02/15/29

(b)

.......

503

546,384

Sonic

Automotive,

Inc.,

4.63%,

11/15/29

(b)

..

23

23,219

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

(b)

...............

75

78,605

SRS

Distribution,

Inc.

(b)

4.63%,

07/01/28

.................

199

199,746

6.13%,

07/01/29

.................

166

169,174

6.00%,

12/01/29

.................

131

131,655

Staples,

Inc.

(b)

7.50%,

04/15/26

.................

409

420,247

10.75%,

04/15/27

................

67

63,148

White

Cap

Buyer

LLC,

6.88%,

10/15/28

(b)

..

305

317,963

White

Cap

Parent

LLC,

8.25%,

(8.25%

Cash

or

9.00%

PIK),

03/15/26

(b)(i)

...........

73

74,642

5,034,901

BlackRock

Managed

Income

Fund

Schedule

of

Investments

33

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Technology

Hardware,

Storage

&

Peripherals

—

0.2%

Apple,

Inc.

1.20%,

02/08/28

.................

USD

130

$

126,279

2.20%,

09/11/29

.................

60

61,412

4.50%,

02/23/36

.................

75

94,096

4.38%,

05/13/45

.................

20

25,220

4.65%,

02/23/46

.................

325

426,298

3.85%,

08/04/46

.................

230

272,542

3.75%,

09/12/47

.................

130

151,987

2.65%,

05/11/50

.................

120

117,976

2.65%,

02/08/51

.................

135

132,733

2.70%,

08/05/51

.................

110

108,814

Dell

International

LLC

6.02%,

06/15/26

.................

167

193,027

8.35%,

07/15/46

.................

38

63,176

HP,

Inc.,

1.45%,

06/17/26

(b)

...........

555

544,010

2,317,570

Textiles,

Apparel

&

Luxury

Goods

—

0.0%

(b)

Crocs,

Inc.

4.25%,

03/15/29

.................

54

53,325

4.13%,

08/15/31

.................

75

73,313

Kontoor

Brands,

Inc.,

4.13%,

11/15/29

....

37

37,000

Levi

Strauss

&

Co.,

3.50%,

03/01/31

.....

38

38,746

William

Carter

Co.

(The),

5.50%,

05/15/25

..

9

9,337

Wolverine

World

Wide,

Inc.,

4.00%,

08/15/29

38

36,946

248,667

Thrifts

&

Mortgage

Finance

—

0.2%

BPCE

SA

(b)

2.38%,

01/14/25

.................

500

508,684

(SOFR

+

1.09%),

2.05%,

10/19/27

(a)

...

375

371,778

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(b)

...

353

385,652

Home

Point

Capital,

Inc.,

5.00%,

02/01/26

(b)

.

71

65,852

Ladder

Capital

Finance

Holdings

LLLP

(b)

4.25%,

02/01/27

.................

67

67,438

4.75%,

06/15/29

.................

52

53,300

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

52

54,600

Nationstar

Mortgage

Holdings,

Inc.

(b)

6.00%,

01/15/27

.................

50

52,085

5.13%,

12/15/30

.................

31

30,612

5.75%,

11/15/31

.................

37

36,815

Rocket

Mortgage

LLC,

2.88%,

10/15/26

(b)

..

71

70,468

1,697,284

Tobacco

—

0.4%

Altria

Group,

Inc.

2.35%,

05/06/25

.................

340

347,981

4.80%,

02/14/29

.................

130

146,632

2.45%,

02/04/32

.................

75

71,206

5.38%,

01/31/44

.................

130

150,051

5.95%,

02/14/49

.................

455

567,809

4.00%,

02/04/61

.................

30

28,668

BAT

Capital

Corp.

3.22%,

08/15/24

.................

39

40,534

2.79%,

09/06/24

.................

510

525,425

3.56%,

08/15/27

.................

257

269,542

2.26%,

03/25/28

.................

300

292,330

2.73%,

03/25/31

.................

100

97,042

4.39%,

08/15/37

.................

75

79,024

3.73%,

09/25/40

.................

195

187,305

4.76%,

09/06/49

.................

90

96,638

Philip

Morris

International,

Inc.,

1.50%,

05/01/25

.....................

250

250,233

Reynolds

American,

Inc.

4.45%,

06/12/25

.................

250

269,999

Security

Par

(000)

Par

(000)

Value

Tobacco

(continued)

7.00%,

08/04/41

.................

USD

98

$

129,157

3,549,576

Trading

Companies

&

Distributors

—

0.4%

Air

Lease

Corp.

3.88%,

07/03/23

.................

300

310,703

4.25%,

02/01/24

.................

350

368,746

2.30%,

02/01/25

.................

100

101,374

3.38%,

07/01/25

.................

195

203,467

2.88%,

01/15/26

.................

490

505,406

1.88%,

08/17/26

.................

830

816,261

Aviation

Capital

Group

LLC

(b)

3.88%,

05/01/23

.................

110

113,231

1.95%,

09/20/26

.................

445

432,221

Beacon

Roofing

Supply,

Inc.,

4.13%,

05/15/29

(b)

38

37,980

Fortress

Transportation

&

Infrastructure

Investors

LLC

(b)

6.50%,

10/01/25

.................

24

24,810

9.75%,

08/01/27

.................

14

15,680

5.50%,

05/01/28

.................

107

109,044

Foundation

Building

Materials,

Inc.,

6.00%,

03/01/29

(b)

....................

66

64,845

H&E

Equipment

Services,

Inc.,

3.88%,

12/15/28

(b)

....................

16

15,880

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(b)

....

91

94,640

Imola

Merger

Corp.,

4.75%,

05/15/29

(b)

....

202

207,262

WESCO

Distribution,

Inc.

(b)

7.13%,

06/15/25

.................

160

169,600

7.25%,

06/15/28

.................

248

271,870

3,863,020

Wireless

Telecommunication

Services

—

0.7%

America

Movil

SAB

de

CV,

4.38%,

04/22/49

400

486,075

Connect

Finco

SARL,

6.75%,

10/01/26

(b)

...

1,050

1,103,812

Ligado

Networks

LLC,

15.50%,

(15.50%

Cash

or

15.50%

PIK),

11/01/23

(a)(b)(i)

........

122

95,847

Rogers

Communications,

Inc.

4.30%,

02/15/48

.................

26

29,710

4.35%,

05/01/49

.................

58

67,212

3.70%,

11/15/49

.................

61

64,026

Sprint

Corp.

7.88%,

09/15/23

.................

23

25,329

7.13%,

06/15/24

.................

26

29,189

7.63%,

03/01/26

.................

58

69,635

T-Mobile

USA,

Inc.

1.50%,

02/15/26

.................

766

756,658

2.25%,

02/15/26

.................

265

265,663

2.25%,

02/15/26

(b)

................

320

320,800

4.75%,

02/01/28

.................

12

12,630

2.63%,

02/15/29

.................

91

89,635

3.88%,

04/15/30

.................

20

21,875

2.88%,

02/15/31

.................

124

122,462

3.50%,

04/15/31

(b)

................

137

142,532

3.50%,

04/15/31

.................

185

192,470

4.38%,

04/15/40

.................

215

245,785

3.00%,

02/15/41

.................

40

39,052

4.50%,

04/15/50

.................

120

140,448

3.30%,

02/15/51

.................

155

151,380

3.40%,

10/15/52

(b)

................

260

258,801

Vmed

O2

UK

Financing

I

plc,

4.75%,

07/15/31

(b)

400

405,000

Vodafone

Group

plc

6.15%,

02/27/37

.................

125

169,451

5.25%,

05/30/48

.................

166

216,214

4.88%,

06/19/49

.................

25

31,527

(USD

Swap

Semi

5

Year

+

4.87%),

7.00%,

04/04/79

(a)

...................

515

622,881

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

34

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Wireless

Telecommunication

Services

(continued)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.45%),

3.25%,

06/04/81

(a)

..............

USD

265

$

259,827

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.07%),

5.12%,

06/04/81

(a)

..............

66

67,485

6,503,411

Total

Corporate

Bonds

—

39.1%

(Cost:

$378,592,788)

.............................

383,950,211

Equity-Linked

Notes

—

6.2%

Air

Freight

&

Logistics

—

0.0%

Barclays

Bank

plc

(United

Parcel

Service,

Inc.),

11.70%, 02/03/22

................

1

222,018

BNP

Paribas

SA

(FedEx

Corp.),

14.85%, 02/07/22

................

—

(k)

121,854

343,872

Airlines

—

0.1%

Credit

Suisse

AG

(Delta

Air

Lines,

Inc.),

17.75%, 01/14/22

................

15

578,590

Automobiles

—

0.1%

BNP

Paribas

SA

(General

Motors

Co.),

19.52%, 02/02/22

................

2

148,209

Societe

Generale

SA

(Ford

Motor

Co.),

19.03%, 02/02/22

................

34

624,729

772,938

Banks

—

0.4%

Barclays

Bank

plc

(First

Republic

Bank),

15.30%, 01/14/22

................

1

126,409

BNP

Paribas

SA

(Bank

of

America

Corp.),

12.65%, 01/18/22

(b)

...............

13

586,319

BNP

Paribas

SA

(Citizens

Financial

Group,

Inc.),

14.56%, 01/20/22

.............

2

111,615

BNP

Paribas

SA

(JPMorgan

Chase

&

Co.),

10.94%, 01/18/22

(b)

...............

4

591,062

Credit

Suisse

AG

(Citizens

Financial

Group,

Inc.),

12.90%, 01/20/22

.............

4

198,750

Goldman

Sachs

International

(JPMorgan

Chase

&

Co.),

11.00%, 01/13/22

......

4

707,402

Royal

Bank

of

Canada

(JPMorgan

Chase

&

Co.),

11.67%, 01/18/22

(b)

............

3

425,808

Royal

Bank

of

Canada

(Truist

Financial

Corp.),

13.59%, 01/19/22

(b)

...............

2

129,155

Societe

Generale

SA

(Bank

of

America

Corp.),

7.65%, 01/20/22

.................

7

305,523

Societe

Generale

SA

(Citigroup,

Inc.),

7.54%, 01/18/22

.................

4

252,516

Toronto-Dominion

Bank

(The)

(Fifth

Third

Bancorp),

16.63%, 01/21/22

.........

2

89,356

3,523,915

Beverages

—

0.0%

JPMorgan

Structured

Products

BV

(Coca-Cola

Co.

(The)),

5.81%, 02/11/22

(b)(h)

.......

5

308,813

Biotechnology

—

0.1%

(b)

JPMorgan

Structured

Products

BV

(AbbVie,

Inc.),

15.19%, 02/03/22

(h)

...........

2

279,471

Royal

Bank

of

Canada

(AbbVie,

Inc.),

19.82%, 02/03/22

................

2

223,945

503,416

Security

Par

(000)

Par

(000)

Value

Building

Products

—

0.1%

Credit

Suisse

AG

(Owens

Corning),

16.50%, 02/17/22

................

USD

1

$

131,962

Societe

Generale

SA

(Johnson

Controls

International

plc),

10.94%, 01/25/22

....

7

521,616

653,578

Capital

Markets

—

0.2%

BNP

Paribas

SA

(S&P

Global,

Inc.),

10.33%, 02/08/22

(b)

...............

1

620,474

Credit

Suisse

AG

(Bank

of

New

York

MellonCorp.

(The)),

11.55%, 01/19/22

...

2

89,515

Goldman

Sachs

International

(Nasdaq,

Inc.),

11.95%, 01/27/22

................

—

(k)

90,457

JPMorgan

Structured

Products

BV

(Goldman

Sachs

Group,

Inc.

(The)),

13.30%, 01/19/22

(b)(h)

..............

1

307,014

Royal

Bank

of

Canada

(Goldman

Sachs

Group,

Inc.

(The)),

14.45%, 01/19/22

(b)

.......

1

253,583

Royal

Bank

of

Canada

(Morgan

Stanley),

9.27%, 01/20/22

(b)

................

5

505,163

Societe

Generale

SA

(S&P

Global,

Inc.),

9.07%, 02/09/22

.................

—

(k)

172,293

Toronto-Dominion

Bank

(The)

(State

Street

Corp.),

16.45%, 01/19/22

...........

1

89,536

2,128,035

Chemicals

—

0.2%

BNP

Paribas

SA

(LyondellBasell

Industries

NV),

17.53%, 01/27/22

................

2

160,587

JPMorgan

Structured

Products

BV

(DuPont

de

Nemours,

Inc.),

11.32%, 01/07/22

(b)(h)

...

4

353,346

Royal

Bank

of

Canada

(LyondellBasell

Industries

NV),

12.05%, 01/27/22

(b)

.....

1

134,064

Societe

Generale

SA

(Dow,

Inc.),

13.68%, 01/28/22

................

3

179,719

Societe

Generale

SA

(Ecolab,

Inc.),

7.63%, 02/16/22

.................

1

220,426

Societe

Generale

SA

(Mosaic

Co.

(The)),

13.41%, 01/13/22

................

12

489,570

Societe

Generale

SA

(Sherwin-Williams

Co.

(The)),

8.32%, 01/28/22

............

1

220,290

1,758,002

Construction

&

Engineering

—

0.0%

JPMorgan

Structured

Products

BV

(Vinci

SA),

10.13%, 03/18/22

(b)(h)

..............

—

(k)

91,907

Construction

Materials

—

0.1%

(b)

JPMorgan

Structured

Products

BV

(Martin

Marietta

Materials,

Inc.),

11.93%, 01/07/22

(h)

1

239,436

Royal

Bank

of

Canada

(Martin

Marietta

Materials,

Inc.),

11.39%, 02/07/22

......

1

275,947

515,383

Consumer

Finance

—

0.1%

Credit

Suisse

AG

(Synchrony

Financial),

16.95%, 01/28/22

................

3

132,180

Royal

Bank

of

Canada

(Capital

One

Financial

Corp.),

11.08%, 01/27/22

(b)

..........

1

172,452

Societe

Generale

SA

(Ally

Financial,

Inc.),

15.79%, 01/20/22

................

7

340,726

Societe

Generale

SA

(Discover

Financial

Services),

12.72%, 01/20/22

.........

1

89,122

734,480

Diversified

Consumer

Services

—

0.6%

Barclays

Bank

plc

(Russell

2000

Index)

8.40%,

01/17/22

.................

—

(k)

1,077,935

8.06%,

03/11/22

.................

1

1,438,228

BlackRock

Managed

Income

Fund

Schedule

of

Investments

35

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Diversified

Consumer

Services

(continued)

BNP

Paribas

SA

(Berkshire

Hathaway),

5.72%, 02/28/22

(b)

................

USD

3

$

872,822

Credit

Suisse

AG

(Russell

2000

Index),

8.05%, 02/22/22

.................

1

1,139,022

Goldman

Sachs

International

(Russell

2000

Index)

9.05%,

01/06/22

.................

—

(k)

1,029,846

8.77%,

02/03/22

.................

—

(k)

739,884

6,297,737

Diversified

Telecommunication

Services

—

0.1%

Citigroup

Global

Markets

Holdings,

Inc.

(Verizon

Communications,

Inc.),

6.88%, 01/25/22

(b)

................

16

813,749

Toronto-Dominion

Bank

(The)

(AT&T,

Inc.),

15.06%, 02/17/22

................

5

114,044

927,793

Electric

Utilities

—

0.0%

Royal

Bank

of

Canada

(NextEra

Energy,

Inc.),

8.78%, 01/27/22

(b)

................

2

180,345

Electronic

Equipment,

Instruments

&

Components

—

0.0%

BNP

Paribas

SA

(Zebra

Technologies

Corp.),

14.70%, 02/11/22

................

—

(k)

75,885

Goldman

Sachs

International

(Flex

Ltd.),

17.14%, 02/02/22

................

5

86,309

Royal

Bank

of

Canada

(Zebra

Technologies

Corp.),

12.44%, 01/07/22

(b)

..........

—

(k)

231,450

393,644

Energy

Equipment

&

Services

—

0.0%

Royal

Bank

of

Canada

(Halliburton

Co.),

15.17%, 01/24/22

(b)

...............

4

88,350

Entertainment

—

0.1%

Royal

Bank

of

Canada

(Netflix,

Inc.),

9.98%, 01/19/22

(b)

................

—

(k)

178,247

Societe

Generale

SA

(Netflix,

Inc.),

14.40%, 01/19/22

................

1

557,785

736,032

Equity

Real

Estate

Investment

Trusts

(REITs)

—

0.1%

BNP

Paribas

SA

(Invitation

Homes,

Inc.),

13.60%, 02/16/22

................

3

136,820

Goldman

Sachs

International

(VICI

Properties,

Inc.),

11.96%, 02/02/22

.............

9

283,807

JPMorgan

Structured

Products

BV

(Crown

Castle

International

Corp.),

14.64%, 01/27/22

(b)(h)

..............

—

(k)

91,944

Merrill

Lynch

International

&

Co.

(Prologis,

Inc.),

10.77%, 01/26/22

................

1

226,432

739,003

Food

&

Staples

Retailing

—

0.1%

Bank

of

Montreal

(Kroger

Co.

(The)),

16.86%, 03/04/22

................

2

89,755

Royal

Bank

of

Canada

(Walmart,

Inc.),

8.94%, 01/18/22

(b)

................

4

550,106

Societe

Generale

SA

(Walgreens

Boots

Alliance,

Inc.),

14.41%, 01/07/22

......

2

92,444

732,305

Food

Products

—

0.0%

BNP

Paribas

SA

(Mondelez

International,

Inc.),

7.57%, 01/28/22

.................

3

160,869

JPMorgan

Structured

Products

BV

(Kraft

Heinz

Co.

(The)),

10.51%, 02/11/22

(b)(h)

......

5

175,654

Security

Par

(000)

Par

(000)

Value

Food

Products

(continued)

Royal

Bank

of

Canada

(Archer-Daniels-Midland

Co.),

8.40%, 01/26/22

(b)

............

USD

2

$

132,801

469,324

Health

Care

Equipment

&

Supplies

—

0.1%

Credit

Suisse

AG

(Boston

Scientific

Corp.),

13.40%, 02/03/22

................

3

135,727

Merrill

Lynch

International

&

Co.

(Abbott

Laboratories),

13.61%, 01/27/22

......

3

363,323

Societe

Generale

SA

(Align

Technology,

Inc.),

13.67%, 02/02/22

................

1

545,255

1,044,305

Health

Care

Providers

&

Services

—

0.1%

BNP

Paribas

SA

(Laboratory

Corp.

of

America

Holdings),

17.89%, 02/11/22

.........

—

(k)

133,844

BNP

Paribas

SA

(McKesson

Corp.),

15.18%, 02/01/22

................

—

(k)

81,482

Royal

Bank

of

Canada

(Anthem,

Inc.),

13.82%, 02/17/22

(b)

...............

—

(k)

118,916

Societe

Generale

SA

(UnitedHealth

Group,

Inc.),

9.47%, 01/20/22

.............

2

916,842

1,251,084

Hotels,

Restaurants

&

Leisure

—

0.2%

BNP

Paribas

SA

(Wendy's

Co.

(The)),

16.54%, 03/03/22

................

4

81,142

BNP

Paribas

SA

(Yum!

Brands,

Inc.),

8.11%, 02/07/22

.................

1

90,796

Goldman

Sachs

International

(Aramark),

16.14%, 01/18/22

................

4

139,413

Goldman

Sachs

International

(Starbucks

Corp.),

10.14%, 01/26/22

...........

7

796,153

JPMorgan

Structured

Products

BV

(McDonald's

Corp.),

6.60%, 01/28/22

(b)(h)

..........

1

308,650

Societe

Generale

SA

(Domino's

Pizza,

Inc.),

14.18%, 02/24/22

................

—

(k)

136,324

1,552,478

Household

Durables

—

0.1%

BNP

Paribas

SA

(Tempur

Sealy

International,

Inc.),

20.31%, 02/10/22

.............

3

137,268

Royal

Bank

of

Canada

(Netwealth

Group

Ltd.),

12.24%, 02/14/22

(b)

...............

4

86,986

Societe

Generale

SA

(DR

Horton,

Inc.),

14.96%, 01/13/22

................

5

470,717

694,971

Household

Products

—

0.0%

Royal

Bank

of

Canada

(Kimberly-Clark

Corp.),

4.29%, 01/27/22

(b)

................

1

88,422

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

JPMorgan

Structured

Products

BV

(AES

Corp.

(The)),

8.51%, 01/10/22

(b)(h)

..........

11

274,112

Industrial

Conglomerates

—

0.0%

(b)

Royal

Bank

of

Canada

(3M

Co.),

5.71%, 01/26/22

.................

1

131,056

Royal

Bank

of

Canada

(General

Electric

Co.),

10.43%, 01/26/22

................

2

176,939

307,995

Insurance

—

0.0%

BNP

Paribas

SA

(MetLife,

Inc.),

12.84%, 02/03/22

................

3

157,634

Interactive

Media

&

Services

—

0.4%

Royal

Bank

of

Canada

(Alphabet,

Inc.)

7.96%,

01/25/22

(b)

................

—

(k)

613,549

12.64%,

02/03/22

(b)

...............

—

(k)

964,756

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

36

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Interactive

Media

&

Services

(continued)

Royal

Bank

of

Canada

(Meta

Platforms,

Inc.),

11.10%, 01/25/22

(b)

...............

USD

2

$

626,093

Societe

Generale

SA

(Alphabet,

Inc.),

12.70%, 02/02/22

................

—

(k)

1,127,077

Societe

Generale

SA

(Meta

Platforms,

Inc.),

13.02%, 01/27/22

................

3

868,600

4,200,075

Internet

&

Direct

Marketing

Retail

—

0.2%

BNP

Paribas

SA

(Amazon.com,

Inc.),

9.29%, 01/14/22

.................

—

(k)

755,166

Societe

Generale

SA

(Amazon.com,

Inc.),

15.70%, 02/02/22

................

—

(k)

1,306,759

2,061,925

IT

Services

—

0.2%

BNP

Paribas

SA

(Global

Payments,

Inc.),

16.64%, 02/07/22

................

2

200,925

Credit

Suisse

AG

(Visa,

Inc.),

9.45%, 01/25/22

3

623,563

JPMorgan

Structured

Products

BV

(Mastercard,

Inc.),

11.75%, 01/28/22

(b)(h)

..........

1

367,562

Royal

Bank

of

Canada

(Block,

Inc.),

19.97%, 02/24/22

(b)

...............

—

(k)

57,114

Royal

Bank

of

Canada

(Fidelity

National

Information

Services,

Inc.),

12.29%, 02/17/22

(b)

...............

1

72,751

Royal

Bank

of

Canada

(Fiserv,

Inc.),

11.33%, 02/17/22

(b)

...............

1

78,530

Toronto-Dominion

Bank

(The)

(PayPal

Holdings,

Inc.),

16.07%, 02/17/22

......

1

279,802

1,680,247

Life

Sciences

Tools

&

Services

—

0.2%

JPMorgan

Structured

Products

BV

(Danaher

Corp.),

12.21%, 01/28/22

(b)(h)

.........

1

448,648

JPMorgan

Structured

Products

BV

(Thermo

Fisher

Scientific,

Inc.),

8.31%, 01/31/22

(b)(h)

1

789,922

Societe

Generale

SA

(Charles

River

Laboratories

International,

Inc.),

13.67%, 01/13/22

................

1

305,054

1,543,624

Machinery

—

0.1%

BNP

Paribas

SA

(Caterpillar,

Inc.),

16.28%, 02/02/22

................

2

366,713

Credit

Suisse

AG

(Deere

&

Co.),

16.40%, 02/18/22

................

1

266,157

Royal

Bank

of

Canada

(Cummins,

Inc.),

11.92%, 01/07/22

(b)

...............

2

382,164

Royal

Bank

of

Canada

(Otis

Worldwide

Corp.),

8.13%, 02/01/22

(b)

................

3

219,952

1,234,986

Media

—

0.1%

BNP

Paribas

SA

(Charter

Communications,

Inc.),

10.27%, 01/14/22

.............

1

446,185

Societe

Generale

SA

(Comcast

Corp.),

12.54%, 01/28/22

................

10

514,820

UBS

AG

(Omnicom

Group,

Inc.),

14.10%, 02/18/22

................

2

178,244

1,139,249

Metals

&

Mining

—

0.0%

Societe

Generale

SA

(Freeport-McMoRan,

Inc.),

16.01%, 01/26/22

.............

5

187,203

Multiline

Retail

—

0.0%

Royal

Bank

of

Canada

(Kohl's

Corp.),

12.36%, 01/18/22

(b)

...............

7

343,939

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

—

0.2%

BNP

Paribas

SA

(ConocoPhillips),

14.64%, 02/01/22

(b)

...............

USD

6

$

458,835

BNP

Paribas

SA

(Exxon

Mobil

Corp.),

11.71%, 02/01/22

(b)

...............

7

439,614

BNP

Paribas

SA

(Williams

Cos.,

Inc.

(The)),

15.22%, 02/24/22

(b)

...............

3

74,750

Goldman

Sachs

International

(Chevron

Corp.),

7.12%, 01/24/22

.................

4

442,057

Royal

Bank

of

Canada

(Chevron

Corp.),

11.31%, 01/21/22

(b)

...............

3

403,307

1,818,563

Personal

Products

—

0.1%

Royal

Bank

of

Canada

(Estee

Lauder

Cos.,

Inc.

(The)),

11.13%, 01/07/22

(b)

..........

2

678,348

Pharmaceuticals

—

0.1%

JPMorgan

Structured

Products

BV

(Merck

KGaA),

17.62%, 02/03/22

(b)(h)

.........

3

230,402

Merrill

Lynch

International

&

Co.

(Bristol-Myers

Squibb

Co.),

10.35%, 02/17/22

.......

2

119,466

Merrill

Lynch

International

&

Co.

(Pfizer,

Inc.),

23.43%, 02/03/22

................

4

235,765

Societe

Generale

SA

(Eli

Lilly

&

Co.),

11.50%, 01/28/22

................

1

216,029

801,662

Road

&

Rail

—

0.2%

Barclays

Bank

plc

(Ryder

System,

Inc.),

14.89%, 01/10/22

................

1

101,824

Goldman

Sachs

International

(Union

Pacific

Corp.),

13.71%, 01/26/22

...........

3

789,632

JPMorgan

Structured

Products

BV

(Uber

Technologies,

Inc.),

14.18%, 01/25/22

(b)(h)

.

13

538,546

Royal

Bank

of

Canada

(XPO

Logistics,

Inc.),

11.91%, 02/07/22

(b)

...............

3

212,453

1,642,455

Semiconductors

&

Semiconductor

Equipment

—

0.5%

Credit

Suisse

AG

(Applied

Materials,

Inc.),

14.65%, 02/11/22

................

5

812,110

Goldman

Sachs

International

(QUALCOMM,

Inc.),

15.31%, 01/26/22

.............

4

791,377

Merrill

Lynch

International

&

Co.

(Advanced

Micro

Devices,

Inc.),

14.52%, 01/25/22

..

5

674,153

Nomura

Holdings,

Inc.

(KLA

Corp.),

15.91%, 02/02/22

................

1

560,977

Royal

Bank

of

Canada

(NVIDIA

Corp.),

12.33%, 01/18/22

(b)

...............

2

726,459

Societe

Generale

SA

(Lam

Research

Corp.),

12.65%, 01/25/22

................

1

845,223

4,410,299

Software

—

0.4%

Credit

Suisse

AG

(Microsoft

Corp.),

13.30%, 01/26/22

................

7

2,249,544

Credit

Suisse

AG

(ServiceNow,

Inc.),

15.30%, 01/26/22

................

1

787,886

Royal

Bank

of

Canada

(Microsoft

Corp.)

7.65%,

01/25/22

(b)

................

2

779,704

10.25%,

02/17/22

(b)

...............

1

386,888

4,204,022

Specialty

Retail

—

0.2%

Bank

of

Montreal

(AutoZone,

Inc.),

10.99%, 03/02/22

................

—

(k)

179,331

Bank

of

Montreal

(Signet

Jewelers

Ltd.),

29.73%, 03/18/22

................

1

131,155

BlackRock

Managed

Income

Fund

Schedule

of

Investments

37

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Specialty

Retail

(continued)

Bank

of

Montreal

(Ulta

Beauty,

Inc.),

18.43%, 03/09/22

................

USD

—

(k)

$

177,420

BNP

Paribas

SA

(O'Reilly

Automotive,

Inc.),

13.50%, 02/10/22

................

—

(k)

135,416

Royal

Bank

of

Canada

(Advance

Auto

Parts,

Inc.),

10.88%, 01/18/22

(b)

...........

2

360,609

Royal

Bank

of

Canada

(Home

Depot,

Inc.

(The)),

10.94%, 01/18/22

(b)

..........

2

792,470

Royal

Bank

of

Canada

(TJX

Cos.,

Inc.

(The)),

8.71%, 01/18/22

(b)

................

7

560,782

2,337,183

Technology

Hardware,

Storage

&

Peripherals

—

0.3%

BNP

Paribas

SA

(Apple,

Inc.),

10.10%, 01/04/22

................

5

812,020

Credit

Suisse

AG

(Apple,

Inc.),

10.25%, 01/26/22

................

10

1,644,072

Toronto-Dominion

Bank

(The)

(Apple,

Inc.),

11.94%, 02/17/22

................

3

410,108

2,866,200

Textiles,

Apparel

&

Luxury

Goods

—

0.0%

BNP

Paribas

SA

(Ralph

Lauren

Corp.),

17.83%, 02/01/22

(b)

...............

2

256,002

Goldman

Sachs

International

(Deckers

Outdoor

Corp.),

15.65%, 02/04/22

...........

—

(k)

89,827

Goldman

Sachs

International

(Skechers

USA,

Inc.),

20.01%, 02/04/22

.............

2

90,629

436,458

Trading

Companies

&

Distributors

—

0.0%

Societe

Generale

SA

(United

Rentals,

Inc.),

13.06%, 02/02/22

................

1

382,866

Wireless

Telecommunication

Services

—

0.1%

Merrill

Lynch

International

&

Co.

(T-Mobile

US,

Inc.),

8.09%, 02/07/22

.............

5

540,139

Total

Equity-Linked

Notes

—

6.2%

(Cost:

$60,046,927)

..............................

60,357,906

Floating

Rate

Loan

Interests

—

13.6%

Aerospace

&

Defense

—

0.5%

(a)

Atlas

CC

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.25%),

5.00%

,

 05/25/28

.................

1,136

1,136,715

Atlas

CC

Acquisition

Corp.,

1st

Lien

Term

Loan

C,

(LIBOR

USD

3

Month

+

4.25%),

5.00%

,

 05/25/28

.................

231

231,163

Cobham

Ultra

US

Co.,

Term

Loan,

11/17/28

(l)

69

68,720

Dynasty

Acquisition

Co.,

Inc.,

Term

Loan

B1,

(LIBOR

USD

3

Month

+

3.50%),

3.72%

,

 04/06/26

.................

480

466,776

Dynasty

Acquisition

Co.,

Inc.,

Term

Loan

B2,

(LIBOR

USD

3

Month

+

3.50%),

3.72%

,

 04/06/26

.................

258

250,955

Peraton

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

4.50%

,

 02/01/28

1,498

1,496,970

Peraton

Corp.,

2nd

Lien

Term

Loan

B1,

(LIBOR

USD

1

Month

+

7.75%),

8.50%

,

 02/01/29

281

284,161

Sequa

Mezzanine

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.75%),

7.75%

,

 11/28/23

.................

64

64,663

TransDigm,

Inc.,

Term

Loan

F,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 12/09/25

.....

114

112,311

Security

Par

(000)

Par

(000)

Value

Aerospace

&

Defense

(continued)

TransDigm,

Inc.,

Term

Loan

G,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 08/22/24

.....

USD

503

$

496,719

4,609,153

Air

Freight

&

Logistics

—

0.0%

AIT

Worldwide

Logistics

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

5.50%

,

 04/06/28

(a)

................

111

110,493

Airlines

—

0.3%

(a)

AAdvantage

Loyality

IP

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

5.50%

,

 04/20/28

.................

509

526,540

Air

Canada,

Term

Loan,

08/11/28

(l)

.......

525

522,842

American

Airlines,

Inc.,

Term

Loan,

01/29/27

(l)

383

359,479

American

Airlines,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

2.00%),

2.11%

,

 12/15/23

.

12

11,940

Kestrel

Bidco,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

4.00%

,

 12/11/26

......

338

327,016

United

AirLines,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 04/21/28

765

766,258

2,514,075

Auto

Components

—

0.2%

(a)

Adient

US

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

3.60%

,

 04/10/28

.....

83

82,499

Clarios

Global

LP,

1st

Lien

Term

Loan,

04/30/26

(l)

......................

912

905,958

Truck

Hero,

Inc.,

Term

Loan,

01/31/28

(l)

....

458

454,891

Wand

Newco

3,

Inc.,

1st

Lien

Term

Loan

B1,

02/05/26

(l)

......................

796

783,397

2,226,745

Automobiles

—

0.1%

Dealer

Tire

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.25%),

4.35%

,

 01/01/38

(a)

....

654

653,067

Building

Products

—

0.2%

(a)

CHI

Overhead

Doors,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.50%

,

 07/31/25

.................

167

166,617

Cornerstone

Building

Brands,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

3.75%

,

 04/12/28

.................

213

212,620

CP

Atlas

Buyer,

Inc.,

Term

Loan

B,

11/23/27

(l)

734

730,157

CP

Iris

Holdco

I,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.25%

,

 10/02/28

(c)

................

113

113,120

CPG

International

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

3.25%

,

 05/05/24

106

105,873

Jeld-Wen,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 07/28/28

.....

151

150,550

MI

Windows

and

Doors

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.50%

,

 12/18/27

.................

164

164,236

Wilsonart

LLC,

Term

Loan

E,

(LIBOR

USD

3

Month

+

3.50%),

4.50%

,

 12/31/26

.....

785

784,635

2,427,808

Capital

Markets

—

0.1%

(a)

Azalea

TopCo,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 07/24/26

.................

89

89,166

Cogeco

Communications

Finance

LP,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.50%),

3.00%

,

 09/01/28

.................

590

586,867

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

38

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Focus

Financial

Partners

LLC,

Delayed

Draw

Term

Loan,

(LIBOR

USD

3

Month

+

1.50%),

4.75%

,

 06/30/28

.................

USD

48

$

48,119

Focus

Financial

Partners

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.50%),

3.00%

,

 06/30/28

.................

209

207,995

Greenhill

&

Co.,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.35%

,

 04/12/24

(c)

...

115

114,586

1,046,733

Chemicals

—

0.4%

(a)

Alpha

3

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

2.50%),

3.00%

,

 03/18/28

..........

720

718,579

ARC

Falcon

I,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.25%

,

 09/30/28

.....

231

230,094

Aruba

Investments

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 11/24/27

.................

53

52,603

Ascend

Performance

Materials

Operations

LLC,

Term

Loan,

08/27/26

(l)

..........

178

179,280

CPC

Acquisition

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 12/29/27

.................

56

54,746

Ecovyst

Catalyst

Technologies

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

3.25%

,

 06/09/28

.................

257

256,250

Element

Solutions,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.00%),

2.09%

,

 01/31/26

349

347,593

Greenrock

Finance,

Inc.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

4.50%

,

 06/28/24

.................

51

50,528

Herens

Holdco

SARL,

Facility

Term

Loan

B,

(LIBOR

USD

6

Month

+

4.00%),

4.75%

,

 07/03/28

.................

125

125,200

Lummus

Technology

Holdings

V

LLC,

Term

Loan

B,

06/30/27

(l)

................

158

156,491

Messer

Industries

GmbH,

Term

Loan

B1,

01/01/38

(l)

......................

376

373,020

Momentive

Performance

Materials,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.36%

,

 05/15/24

...........

479

478,059

Nouryon

Finance

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.10%

,

 10/01/25

....

14

13,883

Oxea

Holding

Vier

GmbH,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

3.25%),

3.38%

-

3.44%

,

 10/14/24

.................

219

217,143

SCIH

Salt

Holdings,

Inc.,

1st

Lien

Term

Loan

B1,

03/16/27

(l)

...................

125

123,201

Sparta

US

HoldCo

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

4.25%

,

 08/02/28

.................

265

265,082

WR

Grace

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.25%

,

 09/22/28

99

99,074

3,740,826

Commercial

Services

&

Supplies

—

0.5%

(a)

Allied

Universal

Holdco

LLC,

Term

Loan,

05/12/28

(l)

......................

648

645,236

Aramark

Intermediate

HoldCo

Corp.,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 03/11/25

.................

43

42,422

Aramark

Intermediate

HoldCo

Corp.,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

2.50%),

2.60%

,

 04/06/28

.................

181

179,504

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Asplundh

Tree

Expert

LLC,

Term

Loan,

09/07/27

(l)

......................

USD

247

$

246,327

Brand

Energy

&

Infrastructure

Services,

Inc.,

Term

Loan,

06/21/24

(l)

..............

1,129

1,102,325

Clean

Harbors,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 10/08/28

.....

190

189,645

Covanta

Holding

Corp.,

Term

Loan

B,

11/30/28

(l)

......................

217

217,094

Covanta

Holding

Corp.,

Term

Loan

C,

11/30/28

(l)

......................

16

16,262

GFL

Environmental,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

3.50%

,

 05/30/25

27

27,090

KAR

Auction

Services,

Inc.,

Term

Loan

B6,

09/19/26

(c)(l)

.....................

178

174,813

LABL,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

5.00%),

5.50%

,

 10/29/28

...........

274

273,315

Prime

Security

Services

Borrower

LLC,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

3

Month

+

2.75%),

3.50%

,

 09/23/26

...........

112

111,797

Spring

Education

Group,

Inc.,

1st

Lien

Term

Loan,

07/30/25

(l)

.................

333

320,587

Tempo

Acquisition

LLC,

Term

Loan

(LIBOR

USD

1

Month

+

3.25%),

3.75%, 11/02/26

...............

1,016

1,017,058

(LIBOR

USD

1

Month

+

3.00%),

3.50%, 08/31/28

...............

88

88,000

TruGreen

Ltd.,

Partnership,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.75%

,

 11/02/27

.................

124

123,661

Viad

Corp.,

Term

Loan,

07/30/28

(l)

........

159

158,108

4,933,244

Construction

&

Engineering

—

0.2%

(a)

Pike

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.11%

,

 01/21/28

............

375

373,356

SRS

Distribution,

Inc.,

Term

Loan,

06/02/28

(l)

984

980,398

USIC

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.25%

,

 05/12/28

.................

395

393,816

1,747,570

Construction

Materials

—

0.1%

(a)

American

Builders

&

Contractors

Supply

Co.,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 01/15/27

...........

414

410,871

Forterra

Finance

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

4.00%

,

 10/25/23

....

72

71,849

Foundation

Building

Materials,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

3.75%

,

 01/31/28

.................

308

305,788

Standard

Industries,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

3.00%

,

 09/22/28

303

303,606

TAMKO

Building

Products

LLC,

Term

Loan,

(LIBOR

USD

2

Month

+

3.00%),

3.10%

,

 05/29/26

.................

166

165,321

1,257,435

Containers

&

Packaging

—

0.3%

(a)

Charter

NEX

US,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.50%

,

 12/01/27

.................

1,131

1,132,431

Flex

Acquisition

Co.,

Inc.,

Term

Loan,

03/02/28

(l)

......................

273

271,959

Mauser

Packaging

Solutions

Holding

Co.,

Term

Loan,

04/03/24

(l)

.................

870

857,298

BlackRock

Managed

Income

Fund

Schedule

of

Investments

39

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

(continued)

Pactiv

Evergreen,

Inc.,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

3.25%),

3.35%

,

 02/05/26

USD

246

$

244,033

Pregis

TopCo

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.10%

,

 07/31/26

136

135,480

Tosca

Services

LLC,

Term

Loan,

08/18/27

(l)

.

261

259,835

Trident

TPI

Holdings,

Inc.,

Delayed

Draw

Term

Loan

B3,

09/15/28

(l)

...............

12

11,601

Trident

TPI

Holdings,

Inc.,

Term

Loan

B3,

(LIBOR

USD

3

Month

+

4.00%),

4.50%

,

 09/15/28

.................

203

202,943

3,115,580

Distributors

—

0.0%

PAI

Holdco,

Inc.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

4.25%

,

 10/28/27

(a)

102

101,765

Diversified

Consumer

Services

—

0.3%

(a)

Ascend

Learning

LLC,

1st

Lien

Term

Loan,

12/11/28

(l)

......................

509

507,834

Ascend

Learning

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

6.25%

,

 12/10/29

.................

111

111,185

Bright

Horizons

Family

Solutions

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

2.75%

,

 11/24/28

.................

184

183,540

Frontdoor,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 06/17/28

.....

114

113,853

Midas

Intermediate

Holdco

II

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

6.75%),

7.50%

,

 12/22/25

.................

691

655,426

Mileage

Plus

Holdings

LLC,

Term

Loan,

06/21/27

(l)

......................

571

601,593

Research

Now

Group,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.50%),

6.50%

,

 12/20/24

.................

112

109,920

Reynolds

Consumer

Products

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 02/04/27

.................

16

15,689

SIRVA

Worldwide,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.50%),

5.60%

,

 08/04/25

(c)

................

109

98,471

Sotheby's,

Term

Loan,

01/15/27

(l)

........

301

301,158

Voyage

Australia

Pty

Ltd.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

4.00%

,

 07/20/28

.................

118

117,594

2,816,263

Diversified

Financial

Services

—

1.3%

(a)

Acuris

Finance

US,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.50%

,

 02/16/28

167

167,597

Advisor

Group

Holdings,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.50%),

4.60%

,

 07/31/26

.................

476

477,049

Alchemy

Copyrights

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.50%

,

 03/10/28

(c)

247

246,860

APi

Group

DE,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

0.00%),

2.85%

,

 12/18/28

.....

145

144,793

Belron

Finance

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

2.44%

,

 10/30/26

....

78

77,779

Belron

Group

SA,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

3.25%

,

 04/13/28

.....

393

392,022

Castlelake

Aviation

One

DAC,

Term

Loan,

10/22/26

(l)

......................

439

436,882

Connect

Finco

SARL,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.50%

,

 12/11/26

....

1,487

1,486,557

Security

Par

(000)

Par

(000)

Value

Diversified

Financial

Services

(continued)

Deerfield

Dakota

Holding

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.75%

,

 04/09/27

.................

USD

1,080

$

1,080,559

Deerfield

Dakota

Holding

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.75%),

7.50%

,

 04/07/28

.................

183

186,203

Delta

Topco,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 12/01/27

784

784,342

Delta

Topco,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

7.25%),

8.00%

,

 12/01/28

40

40,162

Gainwell

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.00%),

4.75%

,

 10/01/27

.................

978

979,745

Genuine

Financial

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

3.85%

,

 07/11/25

.................

177

176,057

LBM

Acquisition

LLC,

1st

Lien

Term

Loan,

12/17/27

(l)

......................

597

591,258

LEB

Holdings

(USA),

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 11/02/27

.

206

206,234

Mercury

Borrower,

Inc.,

1st

Lien

Term

Loan,

08/02/28

(l)

......................

674

670,461

Mercury

Borrower,

Inc.,

2nd

Lien

Term

Loan,

08/02/29

(l)

......................

103

103,055

OLA

Singapore

PTE.

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

0.00%),

0.00%

,

 01/01/38

(c)

159

159,795

PECF

USS

Intermediate

Holding

III

Corp.,

Term

Loan,

12/15/28

(l)

.................

307

307,212

Radiate

Holdco

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

4.00%

,

 09/25/26

....

461

459,128

RVR

Dealership

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.75%

,

 02/08/28

.................

71

70,425

Setanta

Aircraft

Leasing

DAC,

Term

Loan,

(LIBOR

USD

6

Month

+

2.00%),

2.14%

,

 11/05/28

.................

264

263,670

SMG

US

Midco

2,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

2.60%

,

 01/23/25

.................

219

212,205

Sotera

Health

Holdings

LLC,

1st

Lien

Term

Loan,

12/11/26

(l)

.................

210

209,015

Travelport

Finance

(Luxembourg)

SARL,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.00%),

6.99%

,

 05/29/26

...........

501

414,885

Travelport

Finance

(Luxembourg)

SARL,

Term

Loan,

(LIBOR

USD

3

Month

+

1.50%),

2.50%

,

 02/28/25

.................

96

98,904

UPC

Financing

Partnership,

Facility

Term

Loan

AX,

(LIBOR

USD

1

Month

+

3.00%),

3.11%

,

 01/31/29

.................

65

64,743

Veritas

US,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

5.00%),

6.00%

,

 09/01/25

.....

1,096

1,094,722

VS

Buyer

LLC,

Term

Loan,

02/28/27

(l)

.....

725

720,799

White

Cap

Buyer

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.50%

,

 10/19/27

248

247,937

Ziggo

Financing

Partnership,

Facility

Term

Loan

I,

(LIBOR

USD

1

Month

+

2.50%),

2.61%

,

 04/30/28

.................

213

210,514

12,781,569

Diversified

Telecommunication

Services

—

0.5%

(a)

Altice

Financing

SA,

Term

Loan

(LIBOR

USD

3

Month

+

2.75%),

2.87%, 07/15/25

...............

15

14,852

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

40

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Diversified

Telecommunication

Services

(continued)

(LIBOR

USD

3

Month

+

2.75%),

2.87%, 01/31/26

...............

USD

508

$

502,171

Altice

France

SA,

Term

Loan

B13,

(LIBOR

USD

2

Month

+

4.00%),

4.12%

,

 08/14/26

....

983

977,225

Cablevision

Lightpath

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.75%

,

 11/30/27

.

36

35,551

Consolidated

Communications,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

4.25%

,

 10/02/27

.................

54

54,137

Frontier

Communications

Holdings

LLC,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 05/01/28

.................

170

170,078

Iridium

Satellite

LLC,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

2.50%),

3.25%

,

 11/04/26

.

320

319,854

Level

3

Financing,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 03/01/27

169

166,676

Orbcomm,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

5.00%

,

 09/01/28

170

169,493

Virgin

Media

Bristol

LLC,

Facility

Term

Loan

Q,

(LIBOR

USD

1

Month

+

3.25%),

3.36%

,

 01/31/29

.................

144

143,843

Zayo

Group

Holdings,

Inc.,

Term

Loan,

03/09/27

(l)

......................

1,994

1,965,740

4,519,620

Electric

Utilities

—

0.0%

(a)

Calpine

Construction

Finance

Co.

LP,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 01/15/25

.................

34

33,815

Edgewater

Generation

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

3.85%

,

 12/13/25

.................

105

98,866

132,681

Electrical

Equipment

—

0.2%

(a)

Arcline

FM

Holdings

LLC,

1st

Lien

Term

Loan,

06/23/28

(l)

......................

292

290,993

Graftech

International

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

3.50%

,

 02/12/25

31

31,434

MH

Sub

I

LLC,

1st

Lien

Term

Loan,

09/13/24

(l)

1,391

1,383,190

1,705,617

Electronic

Equipment,

Instruments

&

Components

—

0.0%

II-VI,

Inc.,

Term

Loan

B,

12/08/28

(a)(l)

......

295

294,262

Entertainment

—

0.3%

(a)

AMC

Entertainment

Holdings,

Inc.,

Term

Loan

B1,

04/22/26

(l)

...................

196

176,089

City

Football

Group

Ltd.,

Term

Loan,

07/21/28

(c)

(l)

............................

278

275,915

Kingpin

Intermediate

Holdings

LLC,

1st

Lien

Term

Loan,

07/03/24

(l)

..............

422

419,307

Live

Nation

Entertainment,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

1.88%

,

 10/19/26

.................

607

589,296

Playtika

Holding

Corp.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.75%),

2.85%

,

 03/13/28

413

410,642

Renaissance

Holding

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.35%

,

 05/30/25

.................

39

38,782

William

Morris

Endeavor

Entertainment

LLC,

1st

Lien

Term

Loan

B1,

05/18/25

(l)

.....

850

830,991

WMG

Acquisition

Corp.,

Term

Loan

G,

01/20/28

(l)

......................

290

288,764

3,029,786

Security

Par

(000)

Par

(000)

Value

Equity

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

(a)

Cushman

&

Wakefield

US

Borrower

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

2.85%

,

 08/21/25

.................

USD

208

$

206,808

RHP

Hotel

Properties

LP,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

2.11%

,

 05/11/24

.

38

37,396

244,204

Food

&

Staples

Retailing

—

0.1%

(a)

H-Food

Holdings

LLC,

Term

Loan

B2,

05/23/25

(l)

......................

251

250,128

US

Foods

Holding

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.75%),

2.85%

-

2.86%

,

 11/22/28

.................

299

298,824

US

Foods,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 09/13/26

.....

372

367,571

916,523

Food

Products

—

0.5%

(a)

1011778

BC

Unlimited

Liability

Co.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 11/19/26

.................

531

523,091

8th

Avenue

Food

&

Provisions,

Inc.,

1st

Lien

Term

Loan,

10/01/25

(l)

..............

287

282,653

B&G

Foods,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.50%),

2.60%

,

 10/10/26

....

24

24,286

Chobani

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.50%

,

 10/25/27

.....

1,103

1,104,701

Froneri

International

Ltd.,

Facility

1st

Lien

Term

Loan

B2,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 01/29/27

.................

715

705,326

Hostess

Brands

LLC,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

2.25%),

3.00%

,

 08/03/25

.................

249

247,706

JBS

USA

Lux

SA,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 05/01/26

.....

41

41,145

Nomad

Foods

Ltd.,

Facility

Term

Loan

B4,

05/15/24

(l)

......................

264

262,425

Sovos

Brands

Intermediate,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 06/08/28

.................

200

199,380

Triton

Water

Holdings,

Inc.,

1st

Lien

Term

Loan,

03/31/28

(l)

......................

1,150

1,136,220

Utz

Quality

Foods

LLC,

1st

Lien

Term

Loan,

01/20/28

(l)

......................

347

346,387

4,873,320

Health

Care

Equipment

&

Supplies

—

0.1%

(a)(l)

Chariot

Buyer

LLC,

1st

Lien

Term

Loan,

11/03/28

.......................

469

468,414

Insulet

Corp.,

Term

Loan

B,

05/04/28

.....

94

93,472

Medline

Borrower

LP,

Term

Loan,

10/23/28

.

667

666,455

1,228,341

Health

Care

Providers

&

Services

—

0.4%

(a)

Azalea

TopCo,

Inc.,

1st

Lien

Term

Loan,

07/24/26

(l)

......................

556

553,242

CHG

Healthcare

Services,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

4.00%

,

 09/29/28

.................

209

209,266

Electron

Bidco,

Inc.,

1st

Lien

Term

Loan,

11/01/28

(l)

......................

449

447,935

Envision

Healthcare

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

3.85%

,

 10/10/25

419

335,768

EyeCare

Partners

LLC,

1st

Lien

Term

Loan

(LIBOR

USD

3

Month

+

3.75%),

3.97%, 02/18/27

...............

165

163,479

BlackRock

Managed

Income

Fund

Schedule

of

Investments

41

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

(LIBOR

USD

3

Month

+

3.75%),

4.25%, 11/15/28

...............

USD

70

$

69,691

EyeCare

Partners

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.75%),

7.25%

,

 11/15/29

(c)

................

78

78,415

Femur

Buyer,

Inc.,

1st

Lien

Term

Loan,

03/05/26

(l)

......................

137

126,580

Medical

Solutions

Holdings,

Inc.,

1st

Lien

Term

Loan,

11/01/28

(l)

.................

484

483,378

Medical

Solutions

Holdings,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

7.00%),

7.50%

,

 11/01/29

.................

110

108,534

Ortho-Clinical

Diagnostics,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.10%

,

 06/30/25

.................

426

425,586

PetVet

Care

Centers

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.25%

,

 02/14/25

.................

4

3,955

Unified

Womens

Healthcare

LP,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.25%),

5.00%

,

 12/20/27

.................

259

258,994

WCG

Purchaser

Corp.,

1st

Lien

Term

Loan,

01/08/27

(l)

......................

303

303,162

WP

CityMD

Bidco

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

3.75%

,

 12/22/28

471

470,476

4,038,461

Health

Care

Technology

—

0.2%

(a)

athenahealth,

Inc.,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

3

Month

+

4.25%),

4.40%

,

 02/11/26

.................

28

27,762

Change

Healthcare

Holdings,

Inc.,

Term

Loan,

03/01/24

(l)

......................

78

77,507

GoodRx,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

2.85%

,

 10/10/25

....

244

243,168

Polaris

Newco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.50%

,

 06/02/28

.................

794

793,617

Verscend

Holding

Corp.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.00%),

4.10%

,

 08/27/25

497

496,260

1,638,314

Hotels,

Restaurants

&

Leisure

—

0.5%

(a)

Aimbridge

Acquisition

Co.,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

3.85%

,

 02/02/26

.................

59

57,401

Aristocrat

Leisure

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.75%

,

 10/19/24

67

67,210

Bally's

Corp.,

Facility

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.25%),

3.75%

,

 10/02/28

251

250,895

Boyd

Gaming

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 09/15/23

39

38,805

Caesars

Resort

Collection

LLC,

Term

Loan

B,

12/23/24

(l)

......................

161

160,374

Caesars

Resort

Collection

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

3.60%

,

 07/21/25

.................

504

504,093

Churchill

Downs,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

2.11%

,

 03/17/28

.

67

66,984

Flutter

Entertainment

plc,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

2.47%

,

 07/21/26

232

230,899

Four

Seasons

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 11/30/23

.................

74

74,053

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Golden

Nugget

Online

Gaming,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

12.00%),

13.00%

,

 10/04/23

(c)

...............

USD

11

$

11,765

Golden

Nugget,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

2.50%),

3.25%

,

 10/04/23

556

552,214

IRB

Holding

Corp.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

4.25%

,

 12/15/27

.....

1,067

1,065,961

IRB

Holding

Corp.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

2.75%),

3.75%

,

 02/05/25

....

511

509,491

Packers

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

4.00%

,

 03/09/28

555

550,737

Playa

Resorts

Holding

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

3.75%

,

 04/29/24

123

119,964

Scientific

Games

International,

Inc.,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

2.75%),

2.85%

,

 08/14/24

.................

51

50,733

Station

Casinos

LLC,

Facility

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.25%),

2.50%

,

 02/08/27

.................

309

306,136

Whatabrands

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

3.75%

,

 08/03/28

....

421

419,084

5,036,799

Household

Durables

—

0.1%

(a)

ACProducts

Holdings,

Inc.,

Term

Loan,

05/17/28

(l)

......................

719

708,594

Snap

One

Holdings

Corp.,

Term

Loan,

12/08/28

(l)

......................

220

218,979

SWF

Holdings

I

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.75%

,

 10/06/28

.................

160

158,400

Weber-Stephen

Products

LLC,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.25%),

4.00%

,

 10/30/27

.................

137

137,036

1,223,009

Household

Products

—

0.1%

(a)

Diamond

(BC)

BV,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.00%),

3.50%

,

 09/29/28

.....

490

487,702

Pilot

Travel

Centers

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 08/04/28

193

191,210

Spectrum

Brands,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

2.50%

,

 03/03/28

43

42,518

721,430

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

(a)

Calpine

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 08/12/26

.....

54

53,685

ExGen

Renewables

IV

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

3.50%

,

 12/15/27

.................

272

271,823

325,508

Industrial

Conglomerates

—

0.1%

Filtration

Group

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.10%

,

 03/31/25

(a)

...

857

848,726

Insurance

—

0.5%

(a)

Alliant

Holdings

Intermediate

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.35%

,

 05/09/25

.................

421

416,345

Alliant

Holdings

Intermediate

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

3.50%),

4.00%

,

 11/05/27

.................

957

954,728

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

42

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

AmWINS

Group,

Inc.,

Term

Loan,

02/19/28

(l)

USD

521

$

516,641

AssuredPartners,

Inc.,

Term

Loan

(LIBOR

USD

1

Month

+

3.50%),

3.60%, 02/12/27

...............

287

284,068

(LIBOR

USD

1

Month

+

3.50%),

4.00%, 02/12/27

...............

69

69,116

Asurion

LLC,

2nd

Lien

Term

Loan

B3,

(LIBOR

USD

1

Month

+

5.25%),

5.35%

,

 01/31/28

(c)

559

560,397

Asurion

LLC,

2nd

Lien

Term

Loan

B4,

(LIBOR

USD

1

Month

+

5.25%),

5.35%

,

 01/20/29

289

287,616

Asurion

LLC,

Term

Loan

B6,

(LIBOR

USD

1

Month

+

3.13%),

3.23%

,

 11/03/23

......

23

23,008

Asurion

LLC,

Term

Loan

B7,

(LIBOR

USD

1

Month

+

3.00%),

3.10%

,

 11/03/24

......

430

427,858

Hub

International

Ltd.,

Term

Loan,

04/25/25

(l)

326

321,608

Hub

International

Ltd.,

Term

Loan

B3,

(LIBOR

USD

2

Month

+

3.25%),

4.00%

,

 04/25/25

369

369,023

NFP

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.35%

,

 02/15/27

...........

51

49,988

Ryan

Specialty

Group

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.75%

,

 09/01/27

102

101,560

Sedgwick

Claims

Management

Services,

Inc.,

Term

Loan

 12/31/25

(l)

.....................

392

388,246

(LIBOR

USD

1

Month

+

4.25%),

5.25%, 09/03/26

...............

29

29,261

USI,

Inc.,

Term

Loan,

05/16/24

(l)

.........

385

382,125

5,181,588

Interactive

Media

&

Services

—

0.2%

(a)

Adevinta

ASA,

Facility

Term

Loan

B2,

06/26/28

(l)

......................

412

411,773

Arches

Buyer,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.75%

,

 12/06/27

.....

333

330,247

Camelot

US

Acquisition

1

Co.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

4.00%

,

 10/30/26

.................

434

433,394

Grab

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.50%),

5.50%

,

 01/29/26

.....

1,027

1,028,776

2,204,190

Internet

&

Direct

Marketing

Retail

—

0.1%

(a)

CNT

Holding

I

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

4.25%

,

 11/08/27

.................

653

653,201

Pug

LLC,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

4.25%),

4.75%

,

 02/12/27

..........

50

49,563

702,764

IT

Services

—

0.5%

(a)

Applied

Systems,

Inc.,

1st

Lien

Term

Loan,

09/19/24

(l)

......................

238

237,660

Applied

Systems,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.50%),

6.25%

,

 09/19/25

.................

48

48,300

Camelot

US

Acquisition

1

Co.,

Term

Loan,

10/30/26

(l)

......................

1,390

1,379,667

Epicor

Software

Corp.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

7.75%),

8.75%

,

 07/31/28

.................

132

134,861

Epicor

Software

Corp.,

Term

Loan

C,

(LIBOR

USD

1

Month

+

3.25%),

4.00%

,

 07/30/27

245

244,931

FleetCor

Technologies

Operating

Co.

LLC,

Term

Loan

B4,

04/28/28

(l)

...........

413

408,208

Security

Par

(000)

Par

(000)

Value

IT

Services

(continued)

Go

Daddy

Operating

Co.

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 08/10/27

.................

USD

288

$

285,261

Ion

Trading

Finance

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

4.97%

,

 04/01/28

167

167,392

Maximus,

Inc.,

Term

Loan

B,

(LIBOR

USD

6

Month

+

2.00%),

2.50%

,

 05/28/28

.....

170

169,579

Pug

LLC,

Term

Loan

B,

02/12/27

(l)

.......

610

594,953

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 04/16/25

.................

16

16,118

TierPoint

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.50%

,

 05/05/26

175

174,463

Trader

Interactive

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.50%

,

 07/28/28

(c)

109

108,455

Trans

Union

LLC,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 11/16/26

....

168

166,499

Venga

Finance

SARL,

Term

Loan,

12/04/28

(l)

117

114,294

Virtusa

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

4.50%

,

 02/11/28

......

164

164,172

WEX,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 03/31/28

..........

105

104,548

ZoomInfo

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.10%

,

 02/02/26

40

40,050

4,559,411

Leisure

Products

—

0.0%

Fender

Musical

Instruments

Corp.,

Term

Loan,

12/01/28

(a)(c)(l)

....................

134

133,832

Life

Sciences

Tools

&

Services

—

0.3%

(a)

Avantor

Funding,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.00%),

2.50%

,

 11/21/24

.

40

40,183

Avantor

Funding,

Inc.,

Term

Loan

B5,

11/08/27

(l)

517

515,896

Catalent

Pharma

Solutions,

Inc.,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

2.00%),

2.50%

,

 02/22/28

.................

396

396,446

eResearchTechnology,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.50%),

5.50%

,

 02/04/27

.................

809

810,840

ICON

Luxembourg

SARL,

Term

Loan

(LIBOR

USD

3

Month

+

2.25%),

2.75%, 07/03/28

...............

564

563,329

Maravai

Intermediate

Holdings

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.75%

,

 10/19/27

.................

164

164,987

Phoenix

Newco,

Inc.,

1st

Lien

Term

Loan,

11/15/28

(l)

......................

658

657,344

3,149,025

Machinery

—

0.5%

(a)

Albion

Financing

3

SARL,

Term

Loan,

07/31/26

(l)

......................

340

340,126

ASP

Blade

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.50%

,

 10/13/28

122

121,899

Clark

Equipment

Co.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

2.47%

,

 05/18/24

....

204

203,987

Columbus

McKinnon

Corp.,

Term

Loan,

(LIBOR

USD

6

Month

+

2.75%),

3.25%

,

 05/14/28

63

63,335

Filtration

Group

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.00%

,

 10/21/28

....

222

221,933

Gates

Global

LLC,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

2.50%),

3.25%

,

 03/31/27

....

249

248,421

Husky

Injection

Molding

Systems

Ltd.,

Term

Loan,

03/28/25

(l)

.................

1,531

1,503,691

BlackRock

Managed

Income

Fund

Schedule

of

Investments

43

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Machinery

(continued)

Ingersoll-Rand

Services

Co.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 03/01/27

.................

USD

89

$

88,044

Madison

IAQ

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

3.75%

,

 06/21/28

.....

1,050

1,048,097

TK

Elevator

Midco

GmbH,

Facility

Term

Loan

B1,

07/30/27

(l)

...................

289

289,195

Vertiv

Group

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.75%),

2.84%

,

 03/02/27

....

790

784,003

Zurn

LLC,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

2.75%

,

 10/04/28

....

29

28,991

4,941,722

Media

—

0.5%

AVSC

Holding

Corp.,

1st

Lien

Term

Loan

B1,

03/03/25

(a)(l)

.....................

797

729,873

AVSC

Holding

Corp.,

1st

Lien

Term

Loan

B3,

5.00%

,

 10/15/26

(m)

................

80

93,391

Charter

Communications

Operating

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

1.75%),

1.86%

,

 04/30/25

(a)

................

130

129,627

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

B,

08/21/26

(a)(l)

...............

1,518

1,496,322

CSC

Holdings

LLC,

Term

Loan

(a)

(LIBOR

USD

1

Month

+

2.25%),

2.36%, 07/17/25

...............

32

31,486

 04/15/27

(l)

.....................

422

415,962

DirectTV

Financing

LLC,

Term

Loan,

08/02/27

(a)

(l)

............................

612

612,550

Eagle

Broadband

Investments

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

3.75%

,

 11/12/27

(a)

................

155

154,936

EW

Scripps

Co.

(The),

Term

Loan

B3,

(LIBOR

USD

1

Month

+

3.00%),

3.75%

,

 01/07/28

(a)

56

55,784

Intelsat

Jackson

Holdings

SA,

Term

Loan,

07/13/22

(a)(l)

.....................

8

7,880

Intelsat

Jackson

Holdings

SA,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

4.75%),

8.00%

,

 11/27/23

(a)

................

20

19,942

Learfield

Communications

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

4.25%

,

 12/01/23

(a)

................

441

416,062

Lions

Gate

Capital

Holdings

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

2.35%

,

 03/24/25

(a)

................

210

207,962

Terrier

Media

Buyer,

Inc.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.50%),

3.60%

,

 12/17/26

(a)

................

191

189,562

Trader

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

4.00%

,

 09/28/23

(a)(c)

..

668

666,330

Virgin

Media

Bristol

LLC,

Facility

Term

Loan

N,

(LIBOR

USD

1

Month

+

2.50%),

2.61%

,

 01/31/28

(a)

................

133

131,710

5,359,379

Metals

&

Mining

—

0.1%

(a)

Ball

Metalpack

Finco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.50%),

4.68%

,

 07/31/25

.................

179

179,450

Equinox

Holdings,

Inc.,

1st

Lien

Term

Loan

B1,

03/08/24

(l)

......................

1,001

948,472

1,127,922

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

—

0.1%

(a)

Ascent

Resources

Utica

Holdings

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

9.00%),

10.00%

,

 11/01/25

...........

USD

46

$

49,603

EG

Group

Ltd.,

Facility

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.22%

,

 02/07/25

580

577,418

Freeport

LNG

investments

LLLP,

Term

Loan,

12/21/28

(l)

......................

33

32,647

659,668

Personal

Products

—

0.1%

Sunshine

Luxembourg

VII

SARL,

Facility

Term

Loan

B3,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 10/01/26

(a)

................

992

994,903

Pharmaceuticals

—

0.2%

(a)

Amneal

Pharmaceuticals

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

3.63%

,

 05/04/25

.................

315

311,915

Bausch

Health

Cos.,

Inc.,

Term

Loan,

06/02/25

(l)

......................

336

333,826

Elanco

Animal

Health,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 08/01/27

266

262,246

Grifols

Worldwide

Operations

Ltd.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 11/15/27

.................

198

195,227

Jazz

Pharmaceuticals

plc,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

4.00%

,

 05/05/28

363

364,334

Organon

&

Co.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

3.50%

,

 06/02/28

.....

241

241,092

Precision

Medicine

Group

LLC,

Term

Loan,

11/18/27

(l)

......................

250

248,232

Prestige

Brands,

Inc.,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

2.00%),

2.50%

,

 07/03/28

(c)

74

74,528

2,031,400

Professional

Services

—

0.3%

(a)

AlixPartners

LLP,

Term

Loan,

02/04/28

(l)

....

472

469,852

CoreLogic,

Inc.,

1st

Lien

Term

Loan,

06/02/28

(l)

856

854,143

Dun

&

Bradstreet

Corp.

(The),

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.35%

,

 02/06/26

.................

813

809,360

Trans

Union

LLC,

Term

Loan

B6,

12/01/28

(l)

.

574

572,134

2,705,489

Road

&

Rail

—

0.1%

Uber

Technologies,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

3.60%

,

 02/25/27

(a)

1,046

1,045,417

Semiconductors

&

Semiconductor

Equipment

—

0.1%

(a)

MKS

Instruments,

Inc.,

Term

Loan,

10/20/28

(l)

507

505,606

ON

Semiconductor

Corp.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.00%),

2.10%

,

 09/19/26

.................

31

31,307

Synaptics,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

2.75%

,

 12/02/28

.....

114

113,431

650,344

Software

—

1.8%

(a)

Barracuda

Networks,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 02/12/25

.................

831

832,831

Boxer

Parent

Co.,

Inc.,

Term

Loan,

10/02/25

(l)

657

651,983

CCC

Intelligent

Solutions,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

3.00%

,

 09/21/28

.................

327

326,490

Cloudera,

Inc.,

1st

Lien

Term

Loan,

10/08/28

(l)

767

764,124

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

44

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Cloudera,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.00%),

6.50%

,

 10/08/29

(c)

USD

276

$

275,310

ConnectWise

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

4.00%

,

 09/29/28

.....

221

220,251

Cornerstone

OnDemand,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.25%

,

 10/16/28

.................

232

231,088

DTI

Holdco,

Inc.,

Term

Loan

B1,

(LIBOR

USD

3

Month

+

4.75%),

5.75%

,

 09/29/23

.....

227

222,426

E2open

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

4.00%

,

 02/04/28

..........

47

46,882

Greeneden

US

Holdings

I

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.75%

,

 12/01/27

.................

1,343

1,346,911

Helios

Software

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

3.97%

,

 03/11/28

.................

292

290,231

Informatica

LLC,

Term

Loan,

10/27/28

(l)

....

1,236

1,230,487

Instructure

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

3.25%

,

 10/30/28

139

138,305

Magenta

Buyer

LLC,

1st

Lien

Term

Loan,

07/27/28

(l)

......................

1,084

1,080,553

Magenta

Buyer

LLC,

2nd

Lien

Term

Loan,

07/27/29

(l)

......................

545

539,965

McAfee

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

3.85%

,

 09/30/24

.....

259

259,448

MH

Sub

I

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.75%

,

 09/13/24

595

595,123

MH

Sub

I

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.25%),

6.35%

,

 02/23/29

283

284,296

Netsmart,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.75%

,

 10/01/27

218

217,829

Planview

Parent,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

4.75%

,

 12/17/27

.................

553

553,193

Proofpoint,

Inc.,

1st

Lien

Term

Loan,

08/31/28

(l)

858

853,779

RealPage,

Inc.,

1st

Lien

Term

Loan,

04/24/28

(l)

2,090

2,082,531

Severin

Acquisition

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.10%

,

 08/01/25

.................

987

981,392

Sophia

LP,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

4.25%

-

3.72%

,

 10/07/27

1,071

1,069,703

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

1.85%

,

 04/16/25

.................

13

13,084

TIBCO

Software,

Inc.,

2nd

Lien

Term

Loan,

03/03/28

(l)

......................

583

584,198

UKG

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

3.75%

,

 05/04/26

.....

410

407,091

UKG

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

5.75%

,

 05/03/27

.....

376

376,247

UKG,

Inc.,

1st

Lien

Term

Loan,

05/04/26

(l)

..

1,097

1,093,240

17,568,991

Specialty

Retail

—

0.3%

(a)

EG

Group

Ltd.,

Facility

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

4.75%

,

 03/31/26

(c)

168

169,212

Fanatics

Commerce

Intermediate

Holdco

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

3.75%

,

 11/24/28

.................

140

139,125

Mavis

Tire

Express

Services

Topco

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

4.75%

,

 05/04/28

...........

499

499,490

Security

Par

(000)

Par

(000)

Value

Specialty

Retail

(continued)

MED

ParentCo.

LP,

1st

Lien

Term

Loan,

08/31/26

(l)

......................

USD

212

$

211,073

Optiv,

Inc.,

1st

Lien

Term

Loan,

02/01/24

(l)

..

224

221,342

PetSmart

LLC,

Term

Loan,

02/11/28

(l)

.....

1,179

1,179,488

Restoration

Hardware,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

3.00%

,

 10/20/28

209

208,847

Woof

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 12/21/27

.................

262

261,592

2,890,169

Technology

Hardware,

Storage

&

Peripherals

—

0.0%

Electronics

for

Imaging,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

5.10%

,

 07/23/26

(a)(c)

...............

278

270,638

Trading

Companies

&

Distributors

—

0.2%

(a)

Beacon

Roofing

Supply,

Inc.,

Term

Loan,

05/19/28

(l)

......................

176

174,654

Core

&

Main

LP,

Term

Loan

B,

07/27/28

(l)

...

1,297

1,288,141

TMK

Hawk

Parent

Corp.,

Term

Loan

A,

(LIBOR

USD

1

Month

+

7.50%),

8.50%

,

 05/30/24

37

35,154

TMK

Hawk

Parent

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.50%),

4.50%

,

 08/28/24

120

103,043

1,600,992

Transportation

Infrastructure

—

0.0%

(a)

KKR

Apple

Bidco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

3.50%

,

 09/22/28

.................

110

109,541

KKR

Apple

Bidco

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

6.25%

,

 09/21/29

.................

45

45,493

155,034

Wireless

Telecommunication

Services

—

0.1%

(a)

Digicel

International

Finance

Ltd.,

1st

Lien

Term

Loan

B,

05/27/24

(l)

................

473

459,210

Gogo

Intermediate

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

4.50%

,

 04/30/28

.................

124

123,607

MetroNet

Systems

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

4.50%

,

 06/02/28

.................

102

101,437

SBA

Senior

Finance

II

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

1.75%),

1.86%

,

 04/11/25

.

290

286,216

970,470

Total

Floating

Rate

Loan

Interests

—

13.6%

(Cost:

$133,866,349)

.............................

133,762,275

Foreign

Agency

Obligations

—

0.1%

Mexico

—

0.1%

Petroleos

Mexicanos,

7.69%

,

01/23/50

....

360

345,600

Saudi

Arabia

—

0.0%

Saudi

Arabian

Oil

Co.,

2.25%

,

11/24/30

(b)

...

200

194,688

Total

Foreign

Agency

Obligations

—

0.1%

(Cost:

$533,587)

................................

540,288

BlackRock

Managed

Income

Fund

Schedule

of

Investments

45

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Shares

Shares

Value

Investment

Companies

—

18.9%

(n)

BlackRock

Allocation

Target

Shares-

BATS

Series

A

.......................

6,885,757

$

68,719,858

BlackRock

Floating

Rate

Income

Portfolio,

Class

K

Shares

..................

2,031,332

20,171,128

iShares

Core

Dividend

Growth

ETF

......

370,283

20,580,329

iShares

iBoxx

$

High

Yield

Corporate

Bond

ETF

(o)

........................

228,619

19,892,139

iShares

iBoxx

$

Investment

Grade

Corporate

Bond

ETF

......................

71,134

9,426,678

iShares

MBS

ETF

..................

295,536

31,749,432

iShares

U.S.

Real

Estate

ETF

(o)

.........

131,319

15,251,389

Total

Investment

Companies

—

18.9%

(Cost:

$180,078,620)

.............................

185,790,953

Par

(000)

Pa

r

(

000)

Preferred

Securities

—

2.1%

Capital

Trusts

—

2.0%

Banks

—

0.8%

(a)(g)

Bank

of

America

Corp.,

Series

JJ,

(LIBOR

USD

3

Month

+

3.29%),

5.12%

...........

USD

900

941,625

Citigroup,

Inc.

Series

U,

(SOFR

+

3.81%),

5.00%

.....

1,063

1,094,890

Series

V,

(SOFR

+

3.23%),

4.70%

.....

300

303,060

Series

W,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.60%),

4.00%

......................

225

226,687

Series

Y,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.00%),

4.15%

......................

10

10,163

JPMorgan

Chase

&

Co.

Series

FF,

(SOFR

+

3.38%),

5.00%

....

1,369

1,406,648

Series

HH,

(SOFR

+

3.13%),

4.60%

....

490

502,862

PNC

Financial

Services

Group,

Inc.

(The),

Series

T,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.60%),

3.40%

........................

800

787,392

US

Bancorp,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.54%),

3.70%

........................

380

379,924

Wells

Fargo

&

Co.

Series

S,

(LIBOR

USD

3

Month

+

3.11%),

5.90%

......................

570

601,430

Series

U,

(LIBOR

USD

3

Month

+

3.99%),

5.87%

......................

375

409,687

Series

BB,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.45%),

3.90%

......................

925

950,438

7,614,806

Capital

Markets

—

0.5%

(a)(g)

Bank

of

New

York

Mellon

Corp.

(The),

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.35%),

3.70%

775

792,437

Charles

Schwab

Corp.

(The)

Series

I,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.17%),

4.00%

......................

1,100

1,122,000

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%),

4.00%

................

760

767,600

Goldman

Sachs

Group,

Inc.

(The)

Series

Q,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.62%),

5.50%

......................

275

290,125

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Series

R,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%),

4.95%

......................

USD

284

$

294,650

Series

T,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.97%),

3.80%

......................

600

597,000

Series

O,

(LIBOR

USD

3

Month

+

3.83%),

5.30%

......................

600

653,250

4,517,062

Consumer

Finance

—

0.3%

(a)(g)

Ally

Financial,

Inc.,

Series

B,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.87%),

4.70%

.............

1,200

1,245,000

Discover

Financial

Services,

Series

C,

(LIBOR

USD

3

Month

+

3.08%),

5.50%

.......

725

774,844

General

Motors

Financial

Co.,

Inc.,

Series

C,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.00%),

5.70%

631

719,340

2,739,184

Diversified

Financial

Services

—

0.1%

Voya

Financial,

Inc.,

Series

A,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.36%),

6.13%

(a)(g)

...........

475

493,748

Electric

Utilities

—

0.1%

Edison

International,

Series

A,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.70%),

5.38%

(a)(g)

...........

1,250

1,309,500

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

Vistra

Corp.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.74%),

7.00%

(a)(b)(g)

.....................

94

95,212

Insurance

—

0.1%

MetLife,

Inc.,

Series

G,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.58%),

3.85%

(a)(g)

...............

950

969,000

Multi-Utilities

—

0.0%

Sempra

Energy,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.55%),

4.88%

(a)(g)

......................

450

481,851

Oil,

Gas

&

Consumable

Fuels

—

0.1%

(a)(g)

Energy

Transfer

LP

Series

B,

(LIBOR

USD

3

Month

+

4.16%),

6.63%

......................

200

189,484

Series

G,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.31%),

7.13%

......................

1,200

1,218,000

EnLink

Midstream

Partners

LP,

Series

C,

(LIBOR

USD

3

Month

+

4.11%),

6.00%

..

86

68,692

1,476,176

Total

Capital

Trusts

—

2.0%

(Cost:

$19,254,513)

..............................

19,696,539

Shares

Shares

Preferred

Stocks

—

0.1%

Consumer

Finance

—

0.0%

SLM

Corp.,

Series

B,

(LIBOR

USD

3

Month

+

1.70%),

1.90%

(a)(g)

................

2,500

146,250

Insurance

—

0.0%

Allstate

Corp.

(The),

Series

H,

5.10%

(g)

....

15,000

406,800

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

46

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

December

31,

2021

Security

Shares

Shares

Value

Oil,

Gas

&

Consumable

Fuels

—

0.1%

Energy

Transfer

LP,

Series

E,

(LIBOR

USD

3

Month

+

5.16%),

7.60%

(a)(g)

..........

25,000

$

633,750

Total

Preferred

Stocks

—

0.1%

(Cost:

$1,170,581)

..............................

1,186,800

Trust

Preferreds

—

0.0%

Commercial

Services

&

Supplies

—

0.0%

ILFC

E-Capital

Trust

I

,

(30Y

CMT

+

1.55%),

3.37%, 12/21/65

(a)(b)

...............

100,000

82,500

Total

Trust

Preferreds

—

0.0%

(Cost:

$95,250)

................................

82,500

Total

Preferred

Securities

—

2.1%

(Cost:

$20,520,344)

..............................

20,965,839

Security

Shares

Shares

Value

Warrants

—

0.0%

Oil,

Gas

&

Consumable

Fuels

—

0.0%

California

Resources

Corp.

(Issued/exercisable

10/23/20,

1

share

for

1

warrant,

Expires

10/27/24,

Strike

Price

USD

36.00)

(d)

....

52

$

645

Total

Warrants

—

0.0%

(Cost:

$0)

....................................

645

Total

Long-Term

Investments

—

95.7%

(Cost:

$916,852,358)

.............................

938,746,652

Short-Term

Securities

—

7.3%

(n)(p)

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

0.00%

...................

35,824,234

35,824,234

SL

Liquidity

Series,

LLC,

Money

Market

Series,

0.15%

(q)

.......................

35,549,781

35,553,336

Total

Short-Term

Securities

—

7.3%

(Cost:

$71,378,366)

..............................

71,377,570

Total

Investments

—

103.0%

(Cost:

$988,230,724

)

.............................

1,010,124,222

Liabilities

in

Excess

of

Other

Assets

—

(3.0)%

............

(29,514,248)

Net

Assets

—

100.0%

..............................

$

980,609,974

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(d)

Non-income

producing

security.

(e)

Convertible

security.

(f)

Zero-coupon

bond.

(g)

Perpetual

security

with

no

stated

maturity

date.

(h)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(i)

Payment-in-kind

security

which

may

pay

interest/dividends

in

additional

par/shares

and/or

in

cash.

Rates

shown

are

the

current

rate

and

possible

payment

rates.

(j)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(k)

Rounds

to

less

than

1,000.

(l)

Represents

an

unsettled

loan

commitment

at

period

end.

Certain

details

associated

with

this

purchase

are

not

known

prior

to

the

settlement

date,

including

coupon

rate.

(m)

Fixed

rate.

(n)

Affiliate

of

the

Fund.

(o)

All

or

a

portion

of

this

security

is

on

loan.

(p)

Annualized

7-day

yield

as

of

period

end.

(q)

All

or

a

portion

of

this

security

was

purchased

with

the

cash

collateral

from

loaned

securities.

BlackRock

Managed

Income

Fund

Schedule

of

Investments

47

Schedule

of

Investments

(continued)

December

31,

2021

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

December

31,

2021

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

12/31/20

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

12/31/21

Shares

Held

at

12/31/21

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

(a)

..

$

23,028,605

$

12,795,629

$

—

$

—

$

—

$

35,824,234

35,824,234

$

5,242

$

—

SL

Liquidity

Series,

LLC,

Money

Market

Series

(a)

..........

357,289

35,201,761

—

(4,918)

(796)

35,553,336

35,549,781

297,310

(b)

—

BlackRock

Allocation

Target

Shares-

BATS

Series

A

.....

46,574,822

22,274,317

—

—

(129,281)

68,719,858

6,885,757

1,480,406

72,328

BlackRock

Floating

Rate

Income

Portfolio,

Class

K

Shares

...

11,008,080

21,765,307

(12,689,086)

403,874

(317,047)

20,171,128

2,031,332

779,080

—

BlackRock

GNMA

Portfolio,

Class

K

Shares

(c)

.............

25,564,430

144,080

(25,519,229)

(44,576)

(144,705)

—

—

157,986

—

BlackRock

High

Yield

Bond

Portfolio,

Class

K

Shares

(c)

..

1,215,777

14,742

(1,233,718)

23,497

(20,298)

—

—

22,509

—

iShares

Core

Dividend

Growth

ETF

..................

13,569,748

3,045,242

—

—

3,965,339

20,580,329

370,283

396,855

—

iShares

Emerging

Markets

Dividend

ETF

(c)

..........

1,076,431

—

(1,123,554)

(64,473)

111,596

—

—

65,873

—

iShares

iBoxx

$

High

Yield

Corporate

Bond

ETF

......

29,486,186

—

(9,499,116)

255,127

(350,058)

19,892,139

228,619

899,801

—

iShares

iBoxx

$

Investment

Grade

Corporate

Bond

ETF

......

10,240,130

—

(406,422)

20,752

(427,782)

9,426,678

71,134

221,307

—

iShares

MBS

ETF

..........

—

32,097,338

—

—

(347,906)

31,749,432

295,536

5,573

—

iShares

U.S.

Real

Estate

ETF

..

—

14,515,228

—

—

736,161

15,251,389

131,319

149,348

—

$

589,283

$

3,075,223

$

257,168,523

$

4,481,290

$

72,328

—

—

(a)

Represents

net

amount

purchased

(sold).

(b)

All

or

a

portion

represents

securities

lending

income

earned

from

the

reinvestment

of

cash

collateral

from

loaned

securities,

net

of

fees

and

collateral

investment

expenses,

and

other

payments

to

and

from

borrowers

of

securities.

(c)

As

of

period

end,

the

entity

is

no

longer

held.

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

48

Schedule

of

Investments

(continued)

December

31,

2021

i

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Long

Contracts

S&P

500

E-Mini

Index

......................................................

74

03/18/22

$

17,606

$

234,439

U.S.

Treasury

2

Year

Note

....................................................

6

03/31/22

1,309

(428)

234,011

Short

Contracts

GBP

Currency

............................................................

187

03/14/22

15,814

(342,934)

JPY

Currency

............................................................

7

03/14/22

761

9,388

U.S.

Treasury

10

Year

Note

...................................................

645

03/22/22

84,062

471,816

U.S.

Treasury

Long

Bond

....................................................

105

03/22/22

16,793

(83,027)

U.S.

Treasury

Ultra

Bond

....................................................

41

03/22/22

8,041

(127,907)

U.S.

Treasury

5

Year

Note

....................................................

289

03/31/22

34,935

(50,520)

(123,184)

$

110,827

Centrally

Cleared

Credit

Default

Swaps

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

CDX.NA.IG.37.V1

...................

1.00

%

Quarterly

12/20/26

USD

3,460

$

(85,675)

$

(40,732)

$

(44,943)

Balances

Reported

in

the

Statement

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Centrally

Cleared

Swaps

(a)

.........................................................

$

—

$

(40,732)

$

—

$

(44,943)

(a)

Includes

cumulative

appreciation

(depreciation)

on

centrally

cleared

swaps,

as

reported

in

the

Schedule

of

Investments.

Only

current

day’s

variation

margin

is

reported

within

the

Statement

of

Assets

and

Liabilities

and

is

net

of

any

previously

paid

(received)

swap

premium

amounts.

As

of

period

end,

the

fair

values

of

derivative

financial

instruments

located

in

the

Statement

of

Assets

and

Liabilities

were

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Assets

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

appreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

234,439

$

9,388

$

471,816

$

—

$

715,643

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

—

—

—

342,934

261,882

—

604,816

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

44,943

—

—

—

—

44,943

$

—

$

44,943

$

—

$

342,934

$

261,882

$

—

$

649,759

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts

and

centrally

cleared

swaps,

if

any,

are

reported

in

the

Schedule

of

Investments.

In

the

Statement

of

Assets

and

Liabilities,

only

current

day's

variation

margin

is

reported

in

receivables

or

payables

and

the

net

cumulative

unrealized

appreciation

(depreciation)

is

included

in

accumulated

earnings

(loss).

BlackRock

Managed

Income

Fund

Schedule

of

Investments

49

Schedule

of

Investments

(continued)

December

31,

2021

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

For

the

period

ended

December

31,

2021,

the

effect

of

derivative

financial

instruments

in

the

Statement

of

Operations

was

as

follows:

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Realized

Gain

(Loss)

from

Futures

contracts

.......................

$

—

$

—

$

(60,796)

$

504,935

$

5,717,124

$

—

$

6,161,263

Options

purchased

(a)

....................

—

—

(634,277)

—

—

—

(634,277)

Options

written

........................

—

—

481,390

—

—

—

481,390

Swaps

..............................

—

29,892

—

—

—

—

29,892

$

—

$

29,892

$

(213,683)

$

504,935

$

5,717,124

$

—

$

6,038,268

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

—

—

52,512

(90,047)

(176,505)

—

(214,040)

Options

purchased

(b)

....................

—

—

47,053

—

—

—

47,053

Options

written

........................

—

—

(24,747)

—

—

—

(24,747)

Swaps

..............................

—

(47,280)

—

—

—

—

(47,280)

$

—

$

(47,280)

$

74,818

$

(90,047)

$

(176,505)

$

—

$

(239,014)

(a)

Options

purchased

are

included

in

net

realized

gain

(loss)

from

investments

—

unaffiliated.

(b)

Options

purchased

are

included

in

net

change

in

unrealized

appreciation

(depreciation)

on

investments

—

unaffiliated.

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

15,410,501

Average

notional

value

of

contracts

—

short

.................................................................................

121,669,613

Options

Average

value

of

option

contracts

purchased

................................................................................

236,535

Average

value

of

option

contracts

written

...................................................................................

112,125

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

2,470,500

Average

notional

value

—

sell

protection

...................................................................................

118,750

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

50

Schedule

of

Investments

(continued)

December

31,

2021

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund's

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

....................................

$

—

$

71,213,818

$

2,000,000

$

73,213,818

Common

Stocks

Banks

...............................................

3,572,332

1,739,097

—

5,311,429

Beverages

...........................................

—

2,397,382

—

2,397,382

Biotechnology

.........................................

2,829,725

—

—

2,829,725

Building

Products

.......................................

2,497

—

—

2,497

Capital

Markets

........................................

2,471,707

—

—

2,471,707

Consumer

Finance

......................................

1,219,268

—

—

1,219,268

Diversified

Telecommunication

Services

........................

2,156,198

—

—

2,156,198

Electric

Utilities

........................................

—

2,086,171

—

2,086,171

Electrical

Equipment

.....................................

—

1,550,353

—

1,550,353

Electronic

Equipment,

Instruments

&

Components

.................

1,377,198

—

—

1,377,198

Energy

Equipment

&

Services

..............................

616,634

—

—

616,634

Equity

Real

Estate

Investment

Trusts

(REITs)

....................

1,200,420

—

—

1,200,420

Food

&

Staples

Retailing

..................................

851,421

—

—

851,421

Gas

Utilities

...........................................

—

910,538

—

910,538

Health

Care

Equipment

&

Supplies

...........................

2,235,348

—

—

2,235,348

Health

Care

Providers

&

Services

............................

2,682,934

—

—

2,682,934

Household

Durables

.....................................

—

822,310

—

822,310

Household

Products

.....................................

—

1,755,934

—

1,755,934

Insurance

............................................

2,808,633

2,015,275

—

4,823,908

IT

Services

...........................................

5,030,657

666,696

—

5,697,353

Leisure

Products

.......................................

2,086,999

—

—

2,086,999

Machinery

............................................

1,772,310

—

—

1,772,310

Media

...............................................

1,447,541

—

—

1,447,541

Oil,

Gas

&

Consumable

Fuels

...............................

23,596

—

—

23,596

Personal

Products

......................................

1,360,115

2,180,515

—

3,540,630

Pharmaceuticals

.......................................

—

7,259,976

—

7,259,976

Professional

Services

....................................

—

2,654,920

—

2,654,920

Semiconductors

&

Semiconductor

Equipment

....................

1,921,452

3,048,169

—

4,969,621

Software

.............................................

4,588,049

—

—

4,588,049

Technology

Hardware,

Storage

&

Peripherals

....................

—

671,521

—

671,521

Textiles,

Apparel

&

Luxury

Goods

............................

—

4,193,563

—

4,193,563

Tobacco

.............................................

1,378,925

—

—

1,378,925

Trading

Companies

&

Distributors

............................

—

1,774,136

—

1,774,136

Wireless

Telecommunication

Services

.........................

—

804,202

—

804,202

Corporate

Bonds

........................................

—

383,950,211

—

383,950,211

Equity-Linked

Notes

......................................

—

60,357,906

—

60,357,906

Floating

Rate

Loan

Interests

Aerospace

&

Defense

....................................

—

4,609,153

—

4,609,153

Air

Freight

&

Logistics

....................................

—

110,493

—

110,493

Airlines

..............................................

—

2,514,075

—

2,514,075

Auto

Components

......................................

—

2,226,745

—

2,226,745

Automobiles

..........................................

—

653,067

—

653,067

Building

Products

.......................................

—

2,314,688

113,120

2,427,808

Capital

Markets

........................................

—

932,147

114,586

1,046,733

Chemicals

............................................

—

3,740,826

—

3,740,826

Commercial

Services

&

Supplies

.............................

—

4,758,431

174,813

4,933,244

Construction

&

Engineering

................................

—

1,747,570

—

1,747,570

Construction

Materials

....................................

—

1,257,435

—

1,257,435

Containers

&

Packaging

..................................

—

3,115,580

—

3,115,580

Distributors

...........................................

—

101,765

—

101,765

Diversified

Consumer

Services

..............................

—

2,717,792

98,471

2,816,263

Diversified

Financial

Services

...............................

—

12,374,914

406,655

12,781,569

Diversified

Telecommunication

Services

........................

—

4,519,620

—

4,519,620

BlackRock

Managed

Income

Fund

Schedule

of

Investments

51

Schedule

of

Investments

(continued)

December

31,

2021

Level

1

Level

2

Level

3

Total

Electric

Utilities

........................................

$

—

$

132,681

$

—

$

132,681

Electrical

Equipment

.....................................

—

1,705,617

—

1,705,617

Electronic

Equipment,

Instruments

&

Components

.................

—

294,262

—

294,262

Entertainment

.........................................

—

2,753,871

275,915

3,029,786

Equity

Real

Estate

Investment

Trusts

(REITs)

....................

—

244,204

—

244,204

Food

&

Staples

Retailing

..................................

—

916,523

—

916,523

Food

Products

.........................................

—

4,873,320

—

4,873,320

Health

Care

Equipment

&

Supplies

...........................

—

1,228,341

—

1,228,341

Health

Care

Providers

&

Services

............................

—

3,960,046

78,415

4,038,461

Health

Care

Technology

..................................

—

1,638,314

—

1,638,314

Hotels,

Restaurants

&

Leisure

..............................

—

5,025,034

11,765

5,036,799

Household

Durables

.....................................

—

1,223,009

—

1,223,009

Household

Products

.....................................

—

721,430

—

721,430

Independent

Power

and

Renewable

Electricity

Producers

............

—

325,508

—

325,508

Industrial

Conglomerates

..................................

—

848,726

—

848,726

Insurance

............................................

—

4,621,191

560,397

5,181,588

Interactive

Media

&

Services

...............................

—

2,204,190

—

2,204,190

Internet

&

Direct

Marketing

Retail

............................

—

702,764

—

702,764

IT

Services

...........................................

—

4,450,956

108,455

4,559,411

Leisure

Products

.......................................

—

—

133,832

133,832

Life

Sciences

Tools

&

Services

..............................

—

3,149,025

—

3,149,025

Machinery

............................................

—

4,941,722

—

4,941,722

Media

...............................................

—

4,693,049

666,330

5,359,379

Metals

&

Mining

........................................

—

1,127,922

—

1,127,922

Oil,

Gas

&

Consumable

Fuels

...............................

—

659,668

—

659,668

Personal

Products

......................................

—

994,903

—

994,903

Pharmaceuticals

.......................................

—

1,956,872

74,528

2,031,400

Professional

Services

....................................

—

2,705,489

—

2,705,489

Road

&

Rail

...........................................

—

1,045,417

—

1,045,417

Semiconductors

&

Semiconductor

Equipment

....................

—

650,344

—

650,344

Software

.............................................

—

17,293,681

275,310

17,568,991

Specialty

Retail

........................................

—

2,720,957

169,212

2,890,169

Technology

Hardware,

Storage

&

Peripherals

....................

—

—

270,638

270,638

Trading

Companies

&

Distributors

............................

—

1,600,992

—

1,600,992

Transportation

Infrastructure

...............................

—

155,034

—

155,034

Wireless

Telecommunication

Services

.........................

—

970,470

—

970,470

Foreign

Agency

Obligations

.................................

—

540,288

—

540,288

Investment

Companies

....................................

117,071,095

—

—

117,071,095

Preferred

Securities

Banks

...............................................

—

7,614,806

—

7,614,806

Capital

Markets

........................................

—

4,517,062

—

4,517,062

Commercial

Services

&

Supplies

.............................

—

82,500

—

82,500

Consumer

Finance

......................................

146,250

2,739,184

—

2,885,434

Diversified

Financial

Services

...............................

—

493,748

—

493,748

Electric

Utilities

........................................

—

1,309,500

—

1,309,500

Independent

Power

and

Renewable

Electricity

Producers

............

—

95,212

—

95,212

Insurance

............................................

406,800

969,000

—

1,375,800

Multi-Utilities

..........................................

—

481,851

—

481,851

Oil,

Gas

&

Consumable

Fuels

...............................

633,750

1,476,176

—

2,109,926

Warrants

..............................................

645

—

—

645

Short-Term

Securities

.......................................

35,824,234

—

—

35,824,234

Unfunded

Floating

Rate

Loan

Interests

(a)

..............................

—

344

—

344

Liabilities

Unfunded

Floating

Rate

Loan

Interests

(a)

..............................

—

(83)

(57)

(140)

$

197,716,733

$

702,602,114

$

5,532,385

$

905,851,232

Investments

valued

at

NAV

(b)

......................................

104,273,194

$

—

$

1,010,124,426

$

—

Derivative

Financial

Instruments

(c)

Assets

Equity

contracts

...........................................

$

234,439

$

—

$

—

$

234,439

Foreign

currency

exchange

contracts

............................

9,388

—

—

9,388

Interest

rate

contracts

.......................................

471,816

—

—

471,816

Liabilities

Credit

contracts

...........................................

—

(44,943)

—

(44,943)

2021

BlackRock

Annual

Report

to

Shareholders

BlackRock

Managed

Income

Fund

52

Schedule

of

Investments

(continued)

December

31,

2021

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Foreign

currency

exchange

contracts

............................

$

(342,934)

$

—

$

—

$

(342,934)

Interest

rate

contracts

.......................................

(261,882)

—

—

(261,882)

$

110,827

$

(44,943)

$

—

$

65,884

(a)

Unfunded

floating

rate

loan

interests

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

commitment.

(b)

Certain

investments

of

the

Fund

were

fair

valued

using

NAV

per

share

as

no

quoted

market

value

is

available

and

therefore

have

been

excluded

from

the

fair

value

hierarchy.

(c)

Derivative

financial

instruments

are

swaps

and

futures

contracts.

Swaps

and

futures

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument.

Statement

of

Assets

and

Liabilities

December

31,

2021

53

Financial

Statements

BlackRock

Managed

Income

Fund

ASSETS

Investments,

at

value

—

unaffiliated

(a)

(b)

.......................................................................................

$

752,955,699‌

Investments,

at

value

—

affiliated

(c)

.........................................................................................

257,168,523‌

Cash

.............................................................................................................

748,500‌

Cash

pledged:

–‌

Futures

contracts

....................................................................................................

3,180,000‌

Centrally

cleared

swaps

................................................................................................

278‌

Foreign

currency,

at

value

(d)

..............................................................................................

1,176,214‌

Receivables:

–‌

Investments

sold

....................................................................................................

1,753,803‌

Securities

lending

income

—

affiliated

......................................................................................

31,515‌

Capital

shares

sold

...................................................................................................

2,388,212‌

Dividends

—

affiliated

.................................................................................................

223,649‌

Dividends

—

unaffiliated

...............................................................................................

92,937‌

Interest

—

unaffiliated

.................................................................................................

4,932,871‌

From

the

Manager

...................................................................................................

53,579‌

Variation

margin

on

futures

contracts

.......................................................................................

449‌

Unrealized

appreciation

on:

–‌

Unfunded

floating

rate

loan

interests

.......................................................................................

344‌

Prepaid

expenses

.....................................................................................................

118,682‌

Total

assets

.........................................................................................................

1,024,825,255‌

LIABILITIES

Collateral

on

securities

loaned

.............................................................................................

35,559,687‌

Payables:

–‌

Investments

purchased

................................................................................................

5,128,519‌

Administration

fees

...................................................................................................

1,146‌

Capital

shares

redeemed

...............................................................................................

2,615,989‌

Income

dividend

distributions

............................................................................................

42,996‌

Investment

advisory

fees

..............................................................................................

253,145‌

Trustees'

and

Officer's

fees

.............................................................................................

2,077‌

Other

affiliate

fees

...................................................................................................

280‌

Service

and

distribution

fees

.............................................................................................

111,903‌

Variation

margin

on

futures

contracts

.......................................................................................

54,977‌

Variation

margin

on

centrally

cleared

swaps

..................................................................................

49,054‌

Other

accrued

expenses

...............................................................................................

395,368‌

Unrealized

depreciation

on:

–‌

Unfunded

floating

rate

loan

interests

.......................................................................................

140‌

Total

liabilities

........................................................................................................

44,215,281‌

NET

ASSETS

........................................................................................................

$

980,609,974‌

NET

ASSETS

CONSIST

OF

Paid-in

capital

........................................................................................................

$

957,694,151‌

Accumulated

earnings

..................................................................................................

22,915,823‌

NET

ASSETS

........................................................................................................

$

980,609,974‌

(a)

  Investments,

at

cost

—

unaffiliated

........................................................................................

$

736,773,738‌

(b)

  Securities

loaned,

at

value

..............................................................................................

$

34,791,928‌

(c)

  Investments,

at

cost

—

affiliated

..........................................................................................

$

251,456,986‌

(d)

  Foreign

currency,

at

cost

...............................................................................................

$

1,167,786‌

See

notes

to

financial

statements.

Statement

of

Assets

and

Liabilities

(continued)

December

31,

2021

2021

BlackRock

Annual

Report

to

Shareholders

54

BlackRock

Managed

Income

Fund

NET

ASSET

VALUE

Institutional

Net

assets

........................................................................................................

$

447,217,743‌

Shares

outstanding

.................................................................................................

43,396,546‌

Net

asset

value

....................................................................................................

$

10.31‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Investor

A

Net

assets

........................................................................................................

$

401,137,734‌

Shares

outstanding

.................................................................................................

38,924,217‌

Net

asset

value

....................................................................................................

$

10.31‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Investor

C

Net

assets

........................................................................................................

$

29,564,656‌

Shares

outstanding

.................................................................................................

2,867,641‌

Net

asset

value

....................................................................................................

$

10.31‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

Class

K

Net

assets

........................................................................................................

$

102,689,841‌

Shares

outstanding

.................................................................................................

9,938,867‌

Net

asset

value

....................................................................................................

$

10.33‌

Shares

authorized

..................................................................................................

Unlimited

Par

value

........................................................................................................

0.001

See

notes

to

financial

statements.

Statement

of

Operations

Year

Ended

December

31,

2021

55

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

INVESTMENT

INCOME

Dividends

—

affiliated

.................................................................................................

$

4,183,980‌

Dividends

—

unaffiliated

...............................................................................................

1,846,792‌

Interest

—

unaffiliated

................................................................................................

24,153,318‌

Securities

lending

income

—

affiliated

—

net

.................................................................................

297,310‌

Foreign

taxes

withheld

................................................................................................

(57,413‌)

Total

investment

income

.................................................................................................

30,423,987‌

EXPENSES

Investment

advisory

..................................................................................................

2,984,780‌

Service

and

distribution

—

class

specific

....................................................................................

1,113,413‌

Transfer

agent

—

class

specific

..........................................................................................

508,527‌

Accounting

services

..................................................................................................

396,620‌

Administration

.....................................................................................................

353,623‌

Administration

—

class

specific

..........................................................................................

170,546‌

Professional

.......................................................................................................

166,909‌

Registration

.......................................................................................................

147,222‌

Custodian

.........................................................................................................

92,350‌

Trustees

and

Officer

..................................................................................................

9,849‌

Miscellaneous

......................................................................................................

139,702‌

Total

expenses

.......................................................................................................

6,083,541‌

Less:

–‌

Administration

fees

waived

—

class

specific

..................................................................................

(161,114‌)

Fees

waived

and/or

reimbursed

by

the

Manager

...............................................................................

(1,305,250‌)

Transfer

agent

fees

waived

and/or

reimbursed

—

class

specific

.....................................................................

(138,067‌)

Total

expenses

after

fees

waived

and/or

reimbursed

..............................................................................

4,479,110‌

Net

investment

income

..................................................................................................

25,944,877‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

18,479,635‌

Net

realized

gain

(loss)

from:

$

–‌

Investments

—

affiliated

.............................................................................................

589,283‌

Investments

—

unaffiliated

...........................................................................................

14,677,276‌

Capital

gain

distributions

from

underlying

funds

—

affiliated

......................................................................

72,328‌

Foreign

currency

transactions

.........................................................................................

(132,207‌)

Futures

contracts

..................................................................................................

6,161,263‌

Options

written

...................................................................................................

481,390‌

Swaps

.........................................................................................................

29,892‌

A

21,879,225‌

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

affiliated

.............................................................................................

3,075,223‌

Investments

—

unaffiliated

...........................................................................................

(6,192,594‌)

Foreign

currency

translations

..........................................................................................

3,644‌

Futures

contracts

..................................................................................................

(214,040‌)

Options

written

...................................................................................................

(24,747‌)

Swaps

.........................................................................................................

(47,280‌)

Unfunded

floating

rate

loan

interests

.....................................................................................

204‌

A

(3,399,590‌)

Net

realized

and

unrealized

gain

...........................................................................................

18,479,635‌

NET

INCREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

..................................................................

$

44,424,512‌

Statements

of

Changes

in

Net

Assets

2021

BlackRock

Annual

Report

to

Shareholders

56

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

Year

Ended

December

31,

2021

2020

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..............................................................................

$

25,944,877‌

$

19,551,200‌

Net

realized

gain

(loss)

..............................................................................

21,879,225‌

(968,267‌)

Net

change

in

unrealized

appreciation

(depreciation)

..........................................................

(3,399,590‌)

15,970,983‌

Net

increase

in

net

assets

resulting

from

operations

.............................................................

44,424,512‌

34,553,916‌

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

Institutional

....................................................................................

(21,513,873‌)

(9,566,525‌)

Investor

A

.....................................................................................

(17,731,220‌)

(7,243,709‌)

Investor

C

.....................................................................................

(1,196,903‌)

(659,196‌)

Class

K

.......................................................................................

(5,017,403‌)

(2,796,268‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

...................................................

(45,459,399‌)

(20,265,698‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

in

net

assets

derived

from

capital

share

transactions

...................................................

292,417,674‌

202,030,655‌

NET

ASSETS

Total

increase

in

net

assets

.............................................................................

291,382,787‌

216,318,873‌

Beginning

of

year

....................................................................................

689,227,187‌

472,908,314‌

End

of

year

........................................................................................

$

980,609,974‌

$

689,227,187‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

57

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

Institutional

Year

Ended

December

31,

2021

2020

2019

2018

2017

Net

asset

value,

beginning

of

year

..............................

$

10.28‌

$

10.08‌

$

9.56‌

$

10.02‌

$

9.95‌

Net

investment

income

(a)

.....................................

0.33‌

0.35‌

0.39‌

0.40‌

0.37‌

Net

realized

and

unrealized

gain

(loss)

............................

0.24‌

0.21‌

0.52‌

(0.46‌)

0.15‌

Net

increase

(decrease)

from

investment

operations

....................

0.57‌

0.56‌

0.91‌

(0.06‌)

0.52‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

..................................

(0.34‌)

(0.34‌)

(0.39‌)

(0.38‌)

(0.37‌)

From

net

realized

gain

.......................................

(0.20‌)

(0.02‌)

—‌

(0.02‌)

(0.08‌)

Total

distributions

...........................................

(0.54‌)

(0.36‌)

(0.39‌)

(0.40‌)

(0.45‌)

Net

asset

value,

end

of

year

...................................

$

10.31‌

$

10.28‌

$

10.08‌

$

9.56‌

$

10.02‌

Total

Return

(c)

5.61%

5.78%

9.63%

(0.57)%

5.29%

Based

on

net

asset

value

......................................

5.61%

5.78%

9.63%

(0.57)%

5.29%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

.............................................

0.61%

0.62%

0.59%

0.72%

1.03%

Total

expenses

after

fees

waived

and/or

reimbursed

....................

0.40%

0.38%

0.34%

0.27%

0.38%

Net

investment

income

.......................................

3.17%

3.51%

3.90%

4.09%

3.74%

Supplemental

Data

Net

assets,

end

of

year

(000)

....................................

$

447,218‌

$

317,679‌

$

199,220‌

$

117,904‌

$

51,542‌

Portfolio

turnover

rate

(e)

.......................................

45%

76%

71%

79%

68%

Year

Ended

December

31,

2021

2020

2019

2018

2017

Portfolio

turnover

rate

(including

equity-linked

notes)

....................

88‌%

94‌%

91‌%

100‌%

96‌%

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2021

BlackRock

Annual

Report

to

Shareholders

58

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

Investor

A

Year

Ended

December

31,

2021

2020

2019

2018

2017

Net

asset

value,

beginning

of

year

..............................

$

10.28‌

$

10.08‌

$

9.56‌

$

10.02‌

$

9.95‌

Net

investment

income

(a)

.....................................

0.30‌

0.32‌

0.36‌

0.38‌

0.35‌

Net

realized

and

unrealized

gain

(loss)

............................

0.24‌

0.22‌

0.52‌

(0.46‌)

0.15‌

Net

increase

(decrease)

from

investment

operations

....................

0.54‌

0.54‌

0.88‌

(0.08‌)

0.50‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

..................................

(0.31‌)

(0.32‌)

(0.36‌)

(0.36‌)

(0.35‌)

From

net

realized

gain

.......................................

(0.20‌)

(0.02‌)

—‌

(0.02‌)

(0.08‌)

Total

distributions

...........................................

(0.51‌)

(0.34‌)

(0.36‌)

(0.38‌)

(0.43‌)

Net

asset

value,

end

of

year

...................................

$

10.31‌

$

10.28‌

$

10.08‌

$

9.56‌

$

10.02‌

Total

Return

(c)

5.36%

5.51%

9.36%

(0.82)%

5.03%

Based

on

net

asset

value

......................................

5.36%

5.51%

9.36%

(0.82)%

5.03%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

.............................................

0.82%

0.83%

0.80%

0.95%

1.26%

Total

expenses

after

fees

waived

and/or

reimbursed

....................

0.65%

0.62%

0.59%

0.52%

0.63%

Net

investment

income

.......................................

2.91%

3.27%

3.65%

3.83%

3.45%

Supplemental

Data

Net

assets,

end

of

year

(000)

....................................

$

401,138‌

$

261,322‌

$

190,848‌

$

107,314‌

$

59,591‌

Portfolio

turnover

rate

(e)

.......................................

45%

76%

71%

79%

68%

Year

Ended

December

31,

2021

2020

2019

2018

2017

Portfolio

turnover

rate

(including

equity-linked

notes)

....................

88‌%

94‌%

91‌%

100‌%

96‌%

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

59

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

Investor

C

Year

Ended

December

31,

2021

2020

2019

2018

2017

Net

asset

value,

beginning

of

year

..............................

$

10.29‌

$

10.09‌

$

9.56‌

$

10.03‌

$

9.96‌

Net

investment

income

(a)

.....................................

0.23‌

0.25‌

0.29‌

0.31‌

0.28‌

Net

realized

and

unrealized

gain

(loss)

............................

0.23‌

0.21‌

0.53‌

(0.48‌)

0.14‌

Net

increase

(decrease)

from

investment

operations

....................

0.46‌

0.46‌

0.82‌

(0.17‌)

0.42‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

..................................

(0.24‌)

(0.24‌)

(0.29‌)

(0.28‌)

(0.27‌)

From

net

realized

gain

.......................................

(0.20‌)

(0.02‌)

—‌

(0.02‌)

(0.08‌)

Total

distributions

...........................................

(0.44‌)

(0.26‌)

(0.29‌)

(0.30‌)

(0.35‌)

Net

asset

value,

end

of

year

...................................

$

10.31‌

$

10.29‌

$

10.09‌

$

9.56‌

$

10.03‌

Total

Return

(c)

4.50%

4.72%

8.65%

(1.67)%

4.24%

Based

on

net

asset

value

......................................

4.50%

4.72%

8.65%

(1.67)%

4.24%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

.............................................

1.59%

1.60%

1.58%

1.74%

1.95%

Total

expenses

after

fees

waived

and/or

reimbursed

....................

1.40%

1.37%

1.34%

1.28%

1.38%

Net

investment

income

.......................................

2.18%

2.54%

2.89%

3.11%

2.75%

Supplemental

Data

Net

assets,

end

of

year

(000)

....................................

$

29,565‌

$

26,419‌

$

23,347‌

$

11,983‌

$

4,122‌

Portfolio

turnover

rate

(e)

.......................................

45%

76%

71%

79%

68%

Year

Ended

December

31,

2021

2020

2019

2018

2017

Portfolio

turnover

rate

(including

equity-linked

notes)

....................

88‌%

94‌%

91‌%

100‌%

96‌%

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2021

BlackRock

Annual

Report

to

Shareholders

60

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Excludes

equity-linked

notes.

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

See

notes

to

financial

statements.

BlackRock

Managed

Income

Fund

Class

K

Year

Ended

December

31,

2021

2020

2019

2018

2017

Net

asset

value,

beginning

of

year

..............................

$

10.30‌

$

10.11‌

$

9.58‌

$

10.05‌

$

9.97‌

Net

investment

income

(a)

.....................................

0.34‌

0.36‌

0.39‌

0.41‌

0.38‌

Net

realized

and

unrealized

gain

(loss)

............................

0.23‌

0.20‌

0.53‌

(0.47‌)

0.16‌

Net

increase

(decrease)

from

investment

operations

....................

0.57‌

0.56‌

0.92‌

(0.06‌)

0.54‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

..................................

(0.34‌)

(0.35‌)

(0.39‌)

(0.39‌)

(0.38‌)

From

net

realized

gain

.......................................

(0.20‌)

(0.02‌)

—‌

(0.02‌)

(0.08‌)

Total

distributions

...........................................

(0.54‌)

(0.37‌)

(0.39‌)

(0.41‌)

(0.46‌)

Net

asset

value,

end

of

year

...................................

$

10.33‌

$

10.30‌

$

10.11‌

$

9.58‌

$

10.05‌

Total

Return

(c)

5.66%

5.72%

9.78%

(0.61)%

5.45%

Based

on

net

asset

value

......................................

5.66%

5.72%

9.78%

(0.61)%

5.45%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

.............................................

0.52%

0.52%

0.50%

0.64%

0.87%

Total

expenses

after

fees

waived

and/or

reimbursed

....................

0.35%

0.33%

0.29%

0.22%

0.33%

Net

investment

income

.......................................

3.22%

3.58%

3.97%

4.10%

3.76%

Supplemental

Data

Net

assets,

end

of

year

(000)

....................................

$

102,690‌

$

83,808‌

$

59,493‌

$

59,030‌

$

59,555‌

Portfolio

turnover

rate

(e)

.......................................

45%

76%

71%

79%

68%

Year

Ended

December

31,

2021

2020

2019

2018

2017

Portfolio

turnover

rate

(including

equity-linked

notes)

....................

88‌%

94‌%

91‌%

100‌%

96‌%

Notes

to

Financial

Statements

61

Notes

to

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

II (the

“Trust”)

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

an

open-end

management

investment

company.

The Trust

is

organized

as

a Massachusetts

business

trust.

BlackRock

Managed

Income

Fund

(the

"Fund")

is

a

series

of

the

Trust.

The

Fund

is

classified

as

diversified.

The

Fund

offers

multiple

classes

of

shares.

All

classes

of

shares

have

identical

voting,

dividend,

liquidation

and

other

rights

and

are

subject

to

the

same

terms

and

conditions,

except

that

certain

classes

bear

expenses

related

to

the

shareholder

servicing

and

distribution

of

such

shares.

Institutional

and

Class K

Shares

are

sold

only

to

certain

eligible

investors.

Investor

A

and

Investor

C

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares,

and

Investor

C

Shares

also

bear

certain

expenses

related

to

the

distribution

of

such

shares.

Investor

A

and

Investor

C

Shares

are

generally

available

through

financial

intermediaries.

Each

class

has

exclusive

voting

rights

with

respect

to

matters

relating

to

its

shareholder

servicing

and

distribution

expenditures

(except

that

Investor

C

shareholders

may

vote

on

material

changes

to

the

Investor

A

Shares

distribution

and

service

plan).

(a)

Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

(b)

A

CDSC

of

1.00%

is

assessed

on

certain

redemptions

of

Investor

C

Shares

made

within

one

year

after

purchase.

The

Fund,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

"Manager") or

its

affiliates,

is

included

in

a

complex

of

open-end

equity,

multi-asset,

index

and

money

market

funds

referred

to

as

the

BlackRock

Multi-Asset

Complex.

2.

SIGNIFICANT

ACCOUNTING

POLICIES

The

financial

statements

are

prepared

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(“U.S.

GAAP”),

which

may

require

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

in

the

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

increases

and

decreases

in

net

assets

from

operations

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

The

Fund

is

considered

an

investment

company

under

U.S.

GAAP

and

follows

the

accounting

and

reporting

guidance

applicable

to

investment

companies.

Below

is

a

summary

of

significant

accounting

policies: 

Investment

Transactions

and

Income

Recognition:

For

financial

reporting

purposes,

investment

transactions

are

recorded

on

the

dates

the

transactions

are

executed.

Realized

gains

and

losses

on

investment

transactions

are

determined

using

the

specific

identification

method.

Dividend

income and

capital

gain

distributions,

if

any,

are recorded

on

the

ex-dividend

dates.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

dates

at

fair

value. Dividends

from

foreign

securities

where

the

ex-

dividend

dates

may

have

passed

are

subsequently

recorded

when

the

Fund

is

informed

of

the

ex-dividend

dates.

Under

the

applicable

foreign

tax

laws,

a

withholding

tax

at

various

rates

may

be

imposed

on

capital

gains,

dividends

and

interest.

Upon

notification

from

issuers,

a

portion

of

the

dividend

income

received

from

a

real

estate

investment

trust

may

be

redesignated

as

a

reduction

of

cost

of

the

related

investment

and/or

realized

gain.

Interest

income,

including

amortization

and

accretion

of

premiums

and

discounts

on

debt

securities,

is

recognized

daily

on

an

accrual

basis.

Income,

expenses

and

realized

and

unrealized

gains

and

losses

are

allocated

daily

to

each

class

based

on

its

relative

net

assets.

For

convertible

securities,

premiums

attributable

to

the

debt

instrument

are

amortized,

but

premiums

attributable

to

the

conversion

feature

are

not

amortized.

Foreign

Currency

Translation:

The

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”)

.

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

The

Fund

does

not

isolate

the

effect

of

fluctuations

in

foreign

exchange

rates

from

the

effect

of

fluctuations

in

the

market

prices

of

investments

for

financial

reporting

purposes.

Accordingly,

the

effects

of

changes

in

exchange

rates

on

investments

are

not

segregated

in

the

Statement

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

The

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Foreign

Taxes:

The

Fund

may

be

subject

to

foreign

taxes

(a

portion

of

which

may

be

reclaimable)

on

income,

stock

dividends,

capital

gains

on

investments,

or

certain

foreign

currency

transactions.

All

foreign

taxes

are

recorded

in

accordance

with

the

applicable

foreign

tax

regulations

and

rates

that

exist

in

the

foreign

jurisdictions

in

which

the

Fund

invests.

These

foreign

taxes,

if

any,

are

paid

by

the

Fund

and

are

reflected

in

its

Statement

of

Operations

as

follows:

foreign

taxes

withheld

at

source

are

presented

as

a

reduction

of

income,

foreign

taxes

on

securities

lending

income

are

presented

as

a

reduction

of

securities

lending

income,

foreign

taxes

on

stock

dividends

are

presented

as

“Foreign

taxes

withheld”,

and

foreign

taxes

on

capital

gains

from

sales

of

investments

and

foreign

taxes

on

foreign

currency

transactions

are

included

in

their

respective

net

realized

gain

(loss)

categories.

Foreign

taxes

payable

or

deferred

as

of

December

31,

2021

,

if

any,

are

disclosed

in

the Statement

of

Assets

and

Liabilities.

The

Fund

files

withholding

tax

reclaims

in

certain

jurisdictions

to

recover

a

portion

of

amounts

previously

withheld.

The

Fund

may

record

a

reclaim

receivable

based

on

collectability,

which

includes

factors

such

as

the

jurisdiction’s

applicable

laws,

payment

history

and

market

convention.

The

Statement

of

Operations

includes

tax

reclaims

recorded

as

well

as

professional

and

other

fees,

if

any,

associated

with

recovery

of

foreign

withholding

taxes.

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

(“CDSC”)

Conversion

Privilege

Institutional

and

Class

K

Shares

...................................

No

No

None

Investor

A

Shares

............................................

Yes

No

(a)

None

Investor

C

Shares

...........................................

No

Yes

(b)

To

Investor

A

Shares

after

approximately

8

years

Notes

to

Financial

Statements

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

62

Segregation

and

Collateralization:

In

cases

where the

Fund

enters

into

certain

investments

(e.g.,

futures

contracts

and

swaps)

that

would

be

treated

as

“senior

securities”

for

1940

Act

purposes, the

Fund

may

segregate

or

designate

on

its

books

and

records

cash

or

liquid

assets

having

a

market

value

at

least

equal

to

the

amount

of

its

future

obligations

under

such

investments.

Doing

so

allows

the

investments

to

be

excluded

from

treatment

as

a

“senior

security.” 

Furthermore,

if

required

by

an

exchange

or

counterparty

agreement,

the

Fund

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-dealer

or

custodian

as

collateral

for

certain

investments

or

obligations.  

Distributions:

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly. 

Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

dates

and

made

at

least

annually.

The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP.

Indemnifications:

In

the

normal

course

of

business,

the

Fund

enters

into

contracts

that

contain

a

variety

of

representations

that

provide

general

indemnification.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

because

it

involves

future

potential

claims

against

the

Fund,

which

cannot

be

predicted

with

any

certainty.

Other:

Expenses

directly

related

to the

Fund

or

its

classes

are

charged

to

the

Fund

or

the

applicable

class.

Expenses

directly

related

to

the

Fund

and

other

shared

expenses

prorated

to

the

Fund

are

allocated

daily

to

each

class

based

on

its

relative

net

assets

or

other

appropriate

methods.

Other

operating

expenses

shared

by

several

funds,

including

other

funds

managed

by

the

Manager

,

are

prorated

among

those

funds

on

the

basis

of

relative

net

assets

or

other

appropriate

methods.  

3.

INVESTMENT

VALUATION

AND

FAIR

VALUE

MEASUREMENTS 

Investment

Valuation

Policies:

 The

Fund’s

investments

are

valued

at

fair

value

(also

referred

to

as

“market

value”

within

the

financial

statements)

each

day

that

the

Fund

is

open

for

business

and,

for

financial

reporting

purposes,

as

of

the

report

date.

U.S.

GAAP

defines

fair

value

as

the

price

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

policies

approved

by

the

Board

of

Trustees

of

the

Trust

(the

“Board”).

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

a

policy

approved

by

the

Board

as

reflecting

fair

value.

The

BlackRock

Global

Valuation

Methodologies

Committee

(the

“Global

Valuation

Committee”)

is

the

committee

formed

by

management

to

develop

global

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

the

Fund’s

assets

and

liabilities: 

Equity

investments

traded

on

a

recognized

securities

exchange

are

valued

at

that

day's official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

Equity

investments

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services.

Floating

rate

loan

interests

are

valued

at

the

mean

of

the

bid

prices

from

one

or

more

independent

brokers

or

dealers

as

obtained

from

a

third-party

pricing

service.

Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day's

published net

asset

value

(“NAV”). 

The

Fund

values

its

investment

in

SL

Liquidity

Series,

LLC,

Money

Market

Series

(the

“Money

Market

Series”)

at

fair

value,

which

is

ordinarily

based

upon

its

pro

rata

ownership

in

the

underlying

fund’s

net

assets.

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

or

trade price

on

the

exchange

where

the

contract

is

traded.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

Generally,

trading

in

foreign

instruments

is

substantially

completed

each

day

at

various

times

prior

to

the

close

of

trading

on

the

NYSE.

Each

business

day,

the

Fund

uses

current

market

factors

supplied

by

independent

pricing

services

to

value

certain

foreign

instruments

(“Systematic

Fair

Value

Price”).

The

Systematic

Fair

Value

Price

is

designed

to

value

such

foreign

securities

at

fair

value

as

of

the

close

of

trading

on

the

NYSE,

which

follows

the

close

of

the

local

markets.

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Global

Valuation

Committee,

or

its

delegate,

in

accordance

with

a

policy

approved

by

the

Board

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Global

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Global

Valuation

Committee,

or

its

delegate,

seeks

to

determine

the

price

that

the

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Global

Valuation

Committee,

or

its

delegate,

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

The

pricing

of

all

Fair

Valued

Investments

is

subsequently

reported

to

the

Board

or

a

committee

thereof

on

a

quarterly

basis.

Notes

to

Financial

Statements

(continued)

63

Notes

to

Financial

Statements

For

investments

in

equity

or

debt

issued

by

privately

held

companies

or

funds

(“Private

Company”

or

collectively,

the

“Private

Companies”)

and

other

Fair

Valued

Investments,

the

fair

valuation

approaches

that

are

used

by

the

Global

Valuation

Committee

and

third-party

pricing

services

utilize

one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

Investments

in

series

of

preferred

stock

issued

by

Private

Companies

are

typically

valued

utilizing

market

approach

in

determining

the

enterprise

value

of

the

company.

Such

investments

often

contain

rights

and

preferences

that

differ

from

other

series

of

preferred

and

common

stock

of

the

same

issuer.

Enterprise

valuation

techniques

such

as

an

option

pricing

model

(“OPM”),

a

probability

weighted

expected

return

model

(“PWERM”),

current

value

method or

a

hybrid

of

those

techniques

are

used

as

deemed

appropriate

under

the

circumstances.

The

use

of these

valuation techniques

involve

a

determination

of

the

exit

scenarios

of

the

investment

in

order

to

appropriately

allocate

the

enterprise

value

of

the

company

among

the

various

parts

of

its

capital

structure. 

The

Private

Companies

are

not

subject

to

the

public

company

disclosure,

timing,

and

reporting

standards

applicable

to other

investments

held

by the

Fund.

Typically,

the

most

recently

available

information

by

a

Private

Company

is

as

of

a

date

that

is

earlier

than

the

date the

Fund

is

calculating

its

NAV.

This

factor

may

result

in

a

difference

between

the

value

of

the

investment

and

the

price the

Fund

could

receive

upon

the

sale

of

the

investment.

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

These

inputs

to

valuation

techniques

are

categorized

into

a

fair

value

hierarchy

consisting

of

three

broad

levels

for

financial reporting purposes

as

follows: 

Level

1

—

Unadjusted

price

quotations

in

active

markets/exchanges

for

identical

assets

or

liabilities

that

the

Fund

has

the

ability

to

access;

Level

2

—

Other

observable

inputs

(including,

but

not

limited

to,

quoted

prices

for

similar

assets

or

liabilities

in

markets

that

are

active,

quoted

prices

for

identical

or

similar

assets

or

liabilities

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

for

the

assets

or

liabilities

(such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks

and

default

rates)

or

other

market–corroborated

inputs);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Global

Valuation

Committee's assumptions

used

in

determining

the

fair

value

of

financial

instruments).

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Global

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

Private

Companies

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

As

of

December

31,

2021,

certain

investments

of

the

Fund

were fair valued

using

NAV

per

share

or

its

equivalent as

no

quoted

market

value

is

available

and

therefore

have

been

excluded

from

the

fair

value

hierarchy.

4.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

Standard

Inputs

Generally

Considered

By

Third-Party

Pricing

Services

Market

approach

........................

(i)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(i)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(i)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Financial

Statements

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

64

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

Collateralized

Debt

Obligations:

Collateralized

debt

obligations

(“CDOs”),

including

collateralized

bond

obligations

(“CBOs”)

and

collateralized

loan

obligations

(“CLOs”),

are

types

of

asset-backed

securities.

A

CDO

is

an

entity

that

is

backed

by

a

diversified

pool

of

debt

securities

(CBOs)

or

syndicated

bank

loans

(CLOs).

The

cash

flows

of

the

CDO

can

be

split

into

multiple

segments,

called

“tranches,”

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segment

is

the

subordinated

or

“equity”

tranche.

This

tranche

bears

the

greatest

risk

of

defaults

from

the

underlying

assets

in

the

CDO

and

serves

to

protect

the

other,

more

senior,

tranches

from

default

in

all

but

the

most

severe

circumstances.

Since

it

is

shielded

from

defaults

by

the

more

junior

tranches,

a

“senior”

tranche

will

typically

have

higher

credit

ratings

and

lower

yields

than

their

underlying

securities,

and

often

receive

investment

grade

ratings

from

one

or

more

of

the

nationally

recognized

rating

agencies.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses

due

to

actual

defaults,

increased

sensitivity

to

future

defaults

and

the

disappearance

of

one

or

more

protecting

tranches

as

a

result

of

changes

in

the

credit

profile

of

the

underlying

pool

of

assets. 

Zero-Coupon

Bonds:

Zero-coupon

bonds

are

normally

issued

at

a

significant

discount

from

face

value

and

do

not

provide

for

periodic

interest

payments.

These

bonds

may

experience

greater

volatility

in

market

value

than

other

debt

obligations

of

similar

maturity

which

provide

for

regular

interest

payments. 

Equity-Linked

Notes:

Equity-linked

notes

seek

to

generate

income

and

provide

exposure

to

the

performance

of

an

underlying

security,

group

of

securities

or

exchange-

traded

funds

(the

“underlying

reference

instrument”).

In

an

equity-linked

note,

a

fund

purchases

a

note

from

a

bank

or

broker-dealer

and

in

return,

the

issuer

provides

for

interest

payments

during

the

term

of

the

note.

At

maturity

or

when

the

security

is

sold,

a

fund

will

either

settle

by

taking

physical

delivery

of

the

underlying

reference

instrument

or

by

receipt

of

a

cash

settlement

amount

equal

to

the

value

of

the

note

at

termination

or

maturity.

The

use

of

equity-linked

notes

involves

the

risk

that

the

value

of

the

note

changes

unfavorably

due

to

movements

in

the

value

of

the

underlying

reference

instrument.

Equity-linked

notes

are

considered

general

unsecured

contractual

obligations

of

the

bank

or

broker-dealer.

A

fund

must

rely

on

the

creditworthiness

of

the

issuer

for

its

investment

returns.

Capital

Securities

and

Trust

Preferred

Securities:

Capital

securities,

including

trust

preferred

securities,

are

typically

issued

by

corporations,

generally

in

the

form

of

interest-bearing

notes

with

preferred

securities

characteristics.

In

the

case

of

trust

preferred

securities,

an

affiliated

business

trust

of

a

corporation

issues

these

securities,

generally

in

the

form

of

beneficial

interests

in

subordinated

debentures

or

similarly

structured

securities.

The

securities

can

be

structured

with

either

a

fixed

or

adjustable

coupon

that

can

have

either

a

perpetual

or

stated

maturity

date.

For

trust

preferred

securities,

the

issuing

bank

or

corporation

pays

interest

to

the

trust,

which

is

then

distributed

to

holders

of

these

securities

as

a

dividend.

Dividends

can

be

deferred

without

creating

an

event

of

default

or

acceleration,

although

maturity

cannot

take

place

unless

all

cumulative

payment

obligations

have

been

met.

The

deferral

of

payments

does

not

affect

the

purchase

or

sale

of

these

securities

in

the

open

market.

These

securities

generally

are

rated

below

that

of

the

issuing

company’s

senior

debt

securities

and

are

freely

callable

at

the

issuer’s

option. 

Preferred

Stocks:

Preferred

stock

has

a

preference

over

common

stock

in

liquidation

(and

generally

in

receiving

dividends

as

well),

but

is

subordinated

to

the

liabilities

of

the

issuer

in

all

respects.

As

a

general

rule,

the

market

value

of

preferred

stock

with

a

fixed

dividend

rate

and

no

conversion

element

varies

inversely

with

interest

rates

and

perceived

credit

risk,

while

the

market

price

of

convertible

preferred

stock

generally

also

reflects

some

element

of

conversion

value.

Because

preferred

stock

is

junior

to

debt

securities

and

other

obligations

of

the

issuer,

deterioration

in

the

credit

quality

of

the

issuer

will

cause

greater

changes

in

the

value

of

a

preferred

stock

than

in

a

more

senior

debt

security

with

similar

stated

yield

characteristics.

Unlike

interest

payments

on

debt

securities,

preferred

stock

dividends

are

payable

only

if

declared

by

the

issuer’s

board

of

directors.

Preferred

stock

also

may

be

subject

to

optional

or

mandatory

redemption

provisions. 

Warrants:

Warrants

entitle

a

fund

to

purchase

a

specified

number

of

shares

of

common

stock

and

are

non-income

producing.

The

purchase

price

and

number

of

shares

are

subject

to

adjustment

under

certain

conditions

until

the

expiration

date

of

the

warrants,

if

any.

If

the

price

of

the

underlying

stock

does

not

rise

above

the

strike

price

before

the

warrant

expires,

the

warrant

generally

expires

without

any

value

and

a

fund

will

lose

any

amount

it

paid

for

the

warrant.

Thus,

investments

in

warrants

may

involve

more

risk

than

investments

in

common

stock.

Warrants

may

trade

in

the

same

markets

as

their

underlying

stock;

however,

the

price

of

the

warrant

does

not

necessarily

move

with

the

price

of

the

underlying

stock. 

Floating

Rate

Loan

Interests:

Floating

rate

loan

interests

are

typically

issued

to

companies

(the

“borrower”)

by

banks,

other

financial

institutions,

or

privately

and

publicly

offered

corporations

(the

“lender”).

Floating

rate

loan

interests

are

generally

non-investment

grade,

often

involve

borrowers

whose

financial

condition

is

troubled

or

uncertain

and

companies

that

are

highly

leveraged

or

in

bankruptcy

proceedings.

In

addition,

transactions

in

floating

rate

loan

interests

may

settle

on

a

delayed

basis,

which

may

result

in

proceeds

from

the

sale

not

being

readily

available

for

a

fund

to

make

additional

investments

or

meet

its

redemption

obligations.

Floating

rate

loan

interests

may

include

fully

funded

term

loans

or

revolving

lines

of

credit.

Floating

rate

loan

interests

are

typically

senior

in

the

corporate

capital

structure

of

the

borrower.

Floating

rate

loan

interests

generally

pay

interest

at

rates

that

are

periodically

determined

by

reference

to

a

base

lending

rate

plus

a

premium.

Since

the

rates

reset

only

periodically,

changes

in

prevailing

interest

rates

(and

particularly

sudden

and

significant

changes)

can

be

expected

to

cause

some

fluctuations

in

the

NAV

of

a

fund

to

the

extent

that

it

invests

in

floating

rate

loan

interests.

The

base

lending

rates

are

generally

the

lending

rate

offered

by

one

or

more

European

banks,

such

as

the

London

Interbank

Offered

Rate

(“LIBOR”),

the

prime

rate

offered

by

one

or

more

U.S.

banks

or

the

certificate

of

deposit

rate.

Floating

rate

loan

interests

may

in

volve

foreign

borrowers,

and

investments

may

be

denominated

in

foreign

currencies.

These

investments

are

treated

as

investments

in

debt

securities

for

purposes

of

a

fund’s

investment

policies. 

When

a

fund

purchases

a

floating

rate

loan

interest,

it

may

receive

a

facility

fee

and

when

it

sells

a

floating

rate

loan

interest,

it

may

pay

a

facility

fee.

On

an

ongoing

basis,

a

fund

may

receive

a

commitment

fee

based

on

the

undrawn

portion

of

the

underlying

line

of

credit

amount

of

a

floating

rate

loan

interest.

Facility

and

commitment

fees

are

typically

amortized

to

income

over

the

term

of

the

loan

or

term

of

the

commitment,

respectively.

Consent

and

amendment

fees

are

recorded

to

income

as

earned.

Prepayment

penalty

fees,

which

may

be

received

by

a

fund

upon

the

prepayment

of

a

floating

rate

loan

interest

by

a

borrower,

are

recorded

as

realized

gains.

A

fund

may

invest

in

multiple

series

or

tranches

of

a

loan.

A

different

series

or

tranche

may

have

varying

terms

and

carry

different

associated

risks.

Notes

to

Financial

Statements

(continued)

65

Notes

to

Financial

Statements

Floating

rate

loan

interests

are

usually

freely

callable

at

the

borrower’s

option.

A

fund

may

invest

in

such

loans

in

the

form

of

participations

in

loans

(“Participations”)

or

assignments

(“Assignments”)

of

all

or

a

portion

of

loans

from

third

parties.

Participations

typically

will

result

in

a

fund

having

a

contractual

relationship

only

with

the

lender,

not

with

the

borrower.

A

fund

has

the

right

to

receive

payments

of

principal,

interest

and

any

fees

to

which

it

is

entitled

only

from

the

lender

selling

the

Participation

and

only

upon

receipt

by

the

lender

of

the

payments

from

the

borrower.

In

connection

with

purchasing

Participations,

a

fund

generally

will

have

no

right

to

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement,

nor

any

rights

of

offset

against

the

borrower.

A

fund

may

not

benefit

directly

from

any

collateral

supporting

the

loan

in

which

it

has

purchased

the

Participation.

As

a

result,

a

fund

assumes

the

credit

risk

of

both

the

borrower

and

the

lender

that

is

selling

the

Participation.

A

fund’s

investment

in

loan

participation

interests

involves

the

risk

of

insolvency

of

the

financial

intermediaries

who

are

parties

to

the

transactions.

In

the

event

of

the

insolvency

of

the

lender

selling

the

Participation,

a

fund

may

be

treated

as

a

general

creditor

of

the

lender

and

may

not

benefit

from

any

offset

between

the

lender

and

the

borrower.

Assignments

typically

result

in

a

fund

having

a

direct

contractual

relationship

with

the

borrower,

and

a

fund

may

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

In

connection

with

floating

rate

loan

interests,

the

Fund

may

also

enter

into

unfunded

floating

rate

loan

interests

(“commitments”).

In

connection

with

these

commitments,

the

fund

earns

a

commitment

fee,

typically

set

as

a

percentage

of

the

commitment

amount.

Such

fee

income,

which

is

included

in

interest

income

in

the Statement

of

Operations,

is

recognized

ratably

over

the

commitment

period.

Unfunded

floating

rate

loan

interests

are

marked-to-market

daily,

and

any

unrealized

appreciation

(depreciation)

is

included

in

the

Statement

of

Assets

and

Liabilities

and

Statement

of

Operations.

As

of

period

end,

the

Fund

had

the

following

unfunded

floating

rate

loan

interests: 

Securities

Lending:

The

Fund

may

lend

its

securities

to

approved

borrowers,

such

as

brokers,

dealers

and

other

financial

institutions.

The

borrower

pledges

and

maintains

with

the

Fund

collateral

consisting

of

cash,

an

irrevocable

letter

of

credit

issued

by

a

bank,

or

securities

issued

or

guaranteed

by

the

U.S.

Government.

The

initial

collateral

received

by

the

Fund

is

required

to

have

a

value

of

at

least

102%

of

the

current

value

of

the

loaned

securities

for

securities

traded

on

U.S.

exchanges

and

a

value

of

at

least

105%

for

all

other

securities.

The

collateral

is

maintained

thereafter

at

a

value

equal

to

at

least

100%

of

the

current

market

value

of

the

securities

on

loan.

The

market

value

of

the

loaned

securities

is

determined

at

the

close

of

each

business

day

of

the

Fund

and

any

additional

required

collateral

is

delivered

to

the

Fund,

or

excess

collateral

returned

by

the

Fund,

on

the

next

business

day.

During

the

term

of

the

loan,

the

Fund

is

entitled

to

all

distributions

made

on

or

in

respect

of

the

loaned

securities,

but

does

not

receive

interest

income

on

securities

received

as

collateral.

Loans

of

securities

are

terminable

at

any

time

and

the

borrower,

after

notice,

is

required

to

return

borrowed

securities

within

the

standard

time

period

for

settlement

of

securities

transactions.

As

of

period

end,

any

securities

on

loan

were

collateralized

by

cash

and/or

U.S.

Government

obligations.

Cash

collateral

invested

by

the

securities

lending

agent,

BlackRock

Investment

Management,

LLC

(“BIM”),

if

any,

is

disclosed

in

the

Schedule

of

Investments.

Any

non-cash

collateral

received

cannot

be

sold,

re-invested

or

pledged

by

the

Fund,

except

in

the

event

of

borrower

default.

The

securities

on

loan,

if

any,

are

disclosed

in

the

Fund’s

Schedule

of

Investments.

The

market

value

of

any

securities

on

loan

and

the

value

of

any

related

collateral

are

shown

separately

in

the

Statement

of

Assets

and

Liabilities

as

a

component

of

investments

at

value

–

unaffiliated

and

collateral

on

securities

loaned

at

value,

respectively.

Securities

lending

transactions

are

entered

into

by

the

Fund

under

Master

Securities

Lending

Agreements

(each,

an

“MSLA”),

which

provide

the

right,

in

the

event

of

default

(including

bankruptcy

or

insolvency),

for

the

non-defaulting

party

to

liquidate

the

collateral

and

calculate

a

net

exposure

to

the

defaulting

party

or

request

additional

collateral.

In

the

event

that

a

borrower

defaults,

the

Fund,

as

lender,

would

offset

the

market

value

of

the

collateral

received

against

the

market

value

of

the

securities

loaned.

When

the

value

of

the

collateral

is

greater

than

that

of

the

market

value

of

the

securities

loaned,

the

lender

is

left

with

a

net

amount

payable

to

the

defaulting

party.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

such

a

right

of

offset

in

the

event

of

an

MSLA

counterparty’s

bankruptcy

or

insolvency.

Under

the

MSLA,

absent

an

event

of

default,

the

borrower

can

resell

or

re-pledge

the

loaned

securities,

and

the

Fund

can

reinvest

cash

collateral

received

in

connection

with

loaned

securities.

Upon

an

event

of

default,

the

parties’

obligations

to

return

the

securities

or

collateral

to

the

other

party

are

extinguished,

and

the

parties

can

resell

or

re-pledge

the

loaned

securities

or

the

collateral

received

in

connection

with

the

loaned

securities

in

order

to

satisfy

the

defaulting

party’s

net

payment

obligation

for

all

transactions

under

the

MSLA.

The

defaulting

party

remains

liable

for

any

deficiency.

Fund

Name

Borrower

Par

Commitment

Amount

Value

Unrealized

Appreciation

(Depreciation)

Managed

Income

ARC

Falcon

I,

Inc.,

Delayed

Draw

Term

Loan

..............

$

33,667‌

$

33,499‌

$

33,591‌

$

92‌

CP

Iris

Holdco

I,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan

.......

22,687‌

22,687‌

22,630‌

(57‌)

EyeCare

Partners

LLC,

Delayed

Draw

1st

Lien

Term

Loan

.....

17,506‌

17,506‌

17,423‌

(83‌)

Intelsat

Jackson

Holdings

SA,

Term

Loan

.................

1,578‌

1,558‌

1,576‌

18‌

Medical

Solutions

Holdings,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan

92,269‌

91,883‌

92,072‌

189‌

Precision

Medicine

Group

LLC,

Delayed

Draw

Term

Loan

......

29,555‌

29,366‌

29,398‌

32‌

Trident

TPI

Holdings,

Inc.,

Delayed

Draw

Term

Loan

B3

.......

17,258‌

17,215‌

17,228‌

13‌

As

of

period

end,

the

following

table

is

a

summary

of

the

Fund's

securities

on

loan

by

counterparty

which

are

subject

to

offset

under

an

MSLA:

Counterparty  

Securities

Loaned

at

Value

Cash

Collateral

Received

(a)

Non-Cash

Collateral

Received,

at

Fair

Value

Net

Amount

Barclays

Capital,

Inc.

..............................

$

8,092‌

$

(8,092‌)

$

—‌

$

—‌

Jefferies

LLC

....................................

1,718,872‌

(1,718,872‌)

—‌

—‌

J

.

P

.

Morgan

Securities

LLC

..........................

19,685,055‌

(19,685,055‌)

—‌

—‌

SG

Americas

Securities

LLC

.........................

13,379,909‌

(13,379,909‌)

—‌

—‌

$

34,791,928‌

$

(34,791,928‌)

$

—‌

$

—‌

(a)

Collateral

received

in

excess

of

the

market

value

of

securities

on

loan

is

not

presented

in

this

table.

The

total

cash

collateral

received

by

the

Fund

is

disclosed

in

the

Fund's

Statement

of

Assets

and

Liabilities.

Notes

to

Financial

Statements

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

66

The

risks

of

securities

lending

include

the

risk

that

the

borrower

may

not

provide

additional

collateral

when

required

or

may

not

return

the

securities

when

due.

To

mitigate

these

risks,

the

Fund

benefits

from

a

borrower

default

indemnity

provided

by

BIM.

BIM’s

indemnity

allows

for

full

replacement

of

the

securities

loaned

to

the

extent

the

collateral

received

does

not

cover

the

value

on

the

securities

loaned

in

the

event

of

borrower

default.

The

Fund

could

incur

a

loss

if

the

value

of

an

investment

purchased

with

cash

collateral

falls

below

the

market

value

of

loaned

securities

or

if

the

value

of

an

investment

purchased

with

cash

collateral

falls

below

the

value

of

the

original

cash

collateral

received.

Such

losses

are

borne

entirely

by

the

Fund.

5.

Derivative

Financial

Instruments

The

Fund

engages

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Fund

and/or

to

manage

its

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Schedule

of

Investments.

These

contracts

may

be

transacted

on

an

exchange or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk).  

Futures

contracts

are

exchange-traded agreements

between

the

Fund

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Fund

is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the Statement

of

Assets

and

Liabilities.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedule

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Statement

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Fund

agrees

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Statement

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statement

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

rates,

foreign

currency

exchange

rates

or

underlying

assets.

Options:

The

Fund

may

purchase

and

write

call

and

put

options

to

increase

or

decrease

its

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Statement

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Statement

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Statement

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Fund

writes

a

call

option,

such

option

is

typically

“covered,”

meaning

that

it

holds

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Fund

writes

a

put

option,

cash

is

segregated

in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Statement

of

Assets

and

Liabilities.

In

purchasing

and

writing

options,

the

Fund

bears

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

it

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Fund

purchasing

or

selling

a

security

when

it

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Fund

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Statement

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

in

the

Statement

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Statement

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Statement

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Fund’s

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Fund’s

counterparty

on

the

swap.

The

Fund

is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap,

the

Fund

is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap. Securities

deposited

as

initial

margin

are

designated

in

the

Schedule

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Statement

of

Assets

and

Liabilities. Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Statement

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Fund

agrees

to

receive

from

or

pay

to

the

broker

a

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Statement

of

Assets

and

Liabilities.

Payments

received

from

(paid

to)

the

counterparty

are

amortized

over

the

term

of

the

contract

and

recorded

as

realized

gains

(losses)

in

the

Statement

of

Operations,

including

those

at

termination.

Notes

to

Financial

Statements

(continued)

67

Notes

to

Financial

Statements

Credit

default

swaps

—

Credit

default

swaps

are

entered

into

to

manage

exposure

to

the

market

or

certain

sectors

of

the

market,

to

reduce

risk

exposure

to

defaults

of

corporate

and/or

sovereign

issuers

or

to

create

exposure

to

corporate

and/or

sovereign

issuers

to

which

a

fund

is

not

otherwise

exposed

(credit

risk). 

The

Fund

may

either

buy

or

sell

(write)

credit

default

swaps

on

single-name

issuers

(corporate

or

sovereign),

a

combination

or

basket

of

single-name

issuers

or

traded

indexes.

Credit

default

swaps

are

agreements

in

which

the

protection

buyer

pays

fixed

periodic

payments

to

the

seller

in

consideration

for

a

promise

from

the

protection

seller

to

make

a

specific

payment

should

a

negative

credit

event

take

place

with

respect

to

the

referenced

entity

(e.g.,

bankruptcy,

failure

to

pay,

obligation

acceleration,

repudiation,

moratorium

or

restructuring).

As

a

buyer,

if

an

underlying

credit

event

occurs,

the

Fund

will

either

(i)

receive

from

the

seller

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

security

or

underlying

securities

comprising

the

index,

or

(ii)

receive

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

As

a

seller

(writer),

if

an

underlying

credit

event

occurs,

the

Fund

will

either

pay

the

buyer

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

security

or

underlying

securities

comprising

the

index

or

pay

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risk

in

excess

of

the

amounts

recognized

in

the

Statement

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, the

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

Fund

and

a

counterparty

that

governs

certain

OTC

derivatives

and

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

a

default

and/or

termination

event.

Under

an

ISDA

Master

Agreement, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Fund

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statement

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Fund,

if

any,

is

noted

in

the

Schedule

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Fund.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Fund

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

The

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Fund

from the

counterparties

are

not

fully

collateralized, the

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Fund

has

delivered

collateral

to

a

counterparty

and

stands

ready

to

perform

under

the

terms

of

its

agreement

with

such

counterparty, the

Fund bears the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

For

financial

reporting

purposes,

the

Fund

does

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Statement

of

Assets

and

Liabilities.

6.

INVESTMENT

ADVISORY

AGREEMENT

AND

OTHER

TRANSACTIONS

WITH

AFFILIATES 

Investment

Advisory:

The

Trust,

on

behalf

of

the

Fund,

entered

into

an

Investment

Advisory

Agreement

with

the

Manager,

the

Fund’s

investment

adviser

and

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

Inc.

(“BlackRock”)

,

to

provide

investment

advisory

services.

The

Manager

is

responsible

for

the

management

of the

Fund’s

portfolio

and

provides

the

personnel,

facilities,

equipment

and

certain

other

services

necessary

to

the

operations

of the

Fund.

For

such

services,

the

Fund

pays

the

Manager

a

monthly

fee

at

an

annual

rate

equal

to

the

following

percentages

of

the

average

daily

value

of

the

Fund’s

net

assets:

The

Manager

entered

into a

sub-advisory

agreement

with

BlackRock

International

Limited

(“BIL”),

an

affiliate

of

the

Manager. The

Manager

pays

BIL

for

services

it provides

for

that

portion

of

the

Fund

for

which

BIL

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by the

Fund

to

the

Manager.

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

b

illion

.........................................................................................................

0.35%

$1

billion

-

$2

b

illion

.....................................................................................................

0.34

$2

billion

-

$3

b

illion

.....................................................................................................

0.33

Greater

than

$3

b

illion

...................................................................................................

0.32

Notes

to

Financial

Statements

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

68

Service

and

Distribution

Fees:

 The

Trust,

on behalf

of

the

Fund,

entered

into

a

Distribution

Agreement

and

a Distribution

and

Service Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager.

Pursuant

to

the

Distribution

and

Service

Plan

and

in

accordance

with

Rule

12b-1

under

the

1940

Act,

the

Fund

pays

BRIL

ongoing

service

and

distribution

fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

the

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing and

distribution

services

to

the

Fund.

The

ongoing

service

and/or

distribution

fee compensates

BRIL

and

each

broker-dealer

for

providing

shareholder

servicing

and/or

distribution

related

services

to

shareholders.

For

the year

ended

December

31,

2021,

the

following

table

shows

the

class

specific

service

and

distribution

fees

borne

directly

by

each

share

class

of

the

Fund:

Administration:

The

Trust,

on

behalf

of

the

Fund,

entered

into

an

Administration

Agreement

w

ith

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

the

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Statement

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Statement

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

year

ended

December

31,

2021, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

the

Fund:

Transfer

Agent:

Pursuant

to

written

agreements,

certain

financial

intermediaries,

some

of

which

may

be

affiliates,

provide

the

Fund

with

sub-accounting,

recordkeeping,

sub-transfer

agency

and

other

administrative

services

with

respect

to

servicing

of

underlying

investor

accounts.

For

these

services,

these

entities

receive

an

asset-based

fee

or

an

annual

fee

per

shareholder

account,

which

will

vary

depending

on

share

class

and/or

net

assets.

For

the

year

ended December

31,

2021,

the

Fund

did

not

pay

any

amounts

to

affiliates

in

return

for

these

services.

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Fund.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the year

ended

December

31,

2021,

the

Fund

reimbursed

the

Manager

the

following

amounts

for

costs

incurred

in

running

the

call

center,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statement

of

Operations:

For

the

year ended

December

31,

2021,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

the

Fund:

Share

Class

Service

Fees

Distribution

Fees

Investor

A

.................................................................................................

0.25‌%

—‌%

Investor

C

.................................................................................................

0.25‌

0.75‌

Service

and

Distribution

Fees

Investor

A

........................................................................................................

$

835,274‌

Investor

C

........................................................................................................

278,139‌

$

1,113,413‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

0.0425

%

$500

million

-

$1

billion

0.0400

$1

billion

-

$2

billion

0.0375

$2

billion

-

$4

billion

0.0350

$4

billion

-

$13

billion

0.0325

Greater

than

$13

billion

0.0300

Institutional

.......................................................................................................

$

79,523‌

Investor

A

........................................................................................................

66,817‌

Investor

C

........................................................................................................

5,562‌

Class

K

.........................................................................................................

18,644‌

$

170,546‌

Institutional

....................................................................................................

$

539‌

Investor

A

.....................................................................................................

1,188‌

Investor

C

.....................................................................................................

415‌

Class

K

......................................................................................................

120‌

$

2,262‌

Institutional

.......................................................................................................

$

330,929‌

Investor

A

........................................................................................................

159,829‌

Investor

C

........................................................................................................

17,649‌

Class

K

.........................................................................................................

120‌

$

508,527‌

Notes

to

Financial

Statements

(continued)

69

Notes

to

Financial

Statements

Other

Fees:

For

the year

ended December

31,

2021,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of

the

Fund’s Investor

A

Shares for

a

total

of

$24,785.

For

the year

ended

December

31,

2021,

affiliates

received

CDSCs

as

follows:

Expense

Limitations,

Waivers

and

Reimbursements:

The

Manager

contractuall

y

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees

the

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

June

30,

2023.

The

contractual

agreement

may

be

terminated upon

90

days’

notice

by

a

majority

of

the

trustees

who

are

not

"interested

persons"

of

the

Fund,

as

defined

in

the

1940

Act

("Independent

Trustees"),

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitations

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver.

This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statement

of

Operations.

For

the

year

ended

December

31,

2021,

the

amount

waived

was

$14,220.

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of

the

Fund’s

assets

invested

in

affiliated

equity

and

fixed-income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

June

30,

2023.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

the

Fund.

This

amount

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statement

of

Operations.

For

the

year

ended

December

31,

2021,

the

Manager

waived

$327,925

in

investment

advisory

fees

pursuant

to

this

arrangement.

The

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

Other

Expenses

of

the

Fund,

excluding

dividend

expense,

interest

expense

and

certain

other

fund

expenses.

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2023,

unless

approved

by

the

Board,

including

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of the

Fund. For

the

year

ended

December

31,

2021,

the

Manager

waived

and/

or

reimbursed

investment

advisory

fees

of

$963,105

pursuant

to

this

arrangement,

which

is

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statement

of

Operations.

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in

administration

fees

waived

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

—

class

specific,

respectively,

in

the

Statement

of

Operations.

For

the

year

ended

December

31,

2021,

class

specific

expense

waivers

and/or

reimbursements were

as

follows: 

Securities

Lending:

The

U.S.

Securities

and

Exchange

Commission

(“SEC”)

has

issued

an

exemptive

order

which

permits

BIM,

an

affiliate

of

the

Manager,

to

serve

as

securities

lending

agent

for

the

Fund,

subject

to

applicable

conditions.

As

securities

lending

agent,

BIM

bears

all

operational

costs

directly

related

to

securities

lending.

The

Fund

is

responsible

for

expenses

in

connection

with

the

investment

of

cash

collateral

received

for

securities

on

loan

(the

“collateral

investment

expenses”).

The

cash

collateral

is

invested

in

a

private

investment

company,

Money

Market

Series,

managed

by

the

Manager

or

its

affiliates.

However,

BIM

has

agreed

to

cap

the

collateral

investment

expenses

of

the

Money

Market

Series

to

an

annual

rate

of

0.04%.

The

investment

adviser

to

the

Money

Market

Series

will

not

charge

any

advisory

fees

with

respect

to

shares

purchased

by

the

Fund.

The

Money

Market

Series

may,

under

certain

circumstances,

impose

a

liquidity

fee

of

up

to

2%

of

the

value

withdrawn

or

temporarily

restrict

withdrawals

for

up

to

10

business

days

during

a

90

day

period,

in

the

event

that

the

private

investment

company’s

weekly

liquid

assets

fall

below

certain

thresholds.

The

Money

Market

Series

seeks

current

income

consistent

with

maintaining

liquidity

and

preserving

capital.

Although

the

Money

Market

Series

is

not

registered

under

the

1940

Act,

its

investments

may

follow

the

parameters

of

investments

by

a

money

market

fund

that

is

subject

to

Rule

2a-7

under

the

1940

Act.

Securities

lending

income

is

equal

to

the

total

of

income

earned

from

the

reinvestment

of

cash

collateral,

net

of

fees

and

other

payments

to

and

from

borrowers

of

securities,

and

less

the

collateral

investment

expenses.

The

Fund

retains

a

portion

of

securities

lending

income

and

remits

a

remaining

portion

to

BIM

as

compensation

for

its

services

as

securities

lending

agent.

Investor

A

$

34,299‌

Investor

C

4,086‌

Institutional

.............................................................................................................

0.09‌

%

Investor

A

..............................................................................................................

0.09‌

Investor

C

..............................................................................................................

0.09‌

Class

K

...............................................................................................................

0.04‌

Fund

Name/Share

Class

Administration

Fees

Waived

Transfer

Agent

Fees

Waived

and/or

Reimbursed

Managed

Income

Institutional

....................................................................................

$

79,515‌

$

132,243‌

Investor

A

.....................................................................................

57,395‌

1,950‌

Investor

C

.....................................................................................

5,562‌

3,754‌

Class

K

......................................................................................

18,642‌

120‌

$

161,114‌

$

138,067‌

Notes

to

Financial

Statements

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

70

Pursuant

to

the

current

securities

lending

agreement,

the

Fund

retains

82%

of

securities

lending

income

(which

excludes

collateral

investment

expenses),

and

this

amount

retained

can

never

be

less

than

70%

of

the

total

of

securities

lending

income

plus

the

collateral

investment

expenses.

In

addition,

commencing

the

business

day

following

the

date

that

the

aggregate

securities

lending

income

earned

across

the

BlackRock

Multi-Asset

Complex

in

a

calendar

year

exceeds

a

specified

threshold,

the

Fund,

pursuant

to

the

securities

lending

agreement,

will

retain

for

the

remainder

of

that

calendar

year

securities

lending

income

in

an

amount

equal

to

85%

of

securities

lending

income

(which

excludes

collateral

investment

expenses),

and

this

amount

retained

can

never

be

less

than

70%

of

the

total

of

securities

lending

income

plus

the

collateral

investment

expenses.

The

share

of

securities

lending

income

earned

by

the

Fund

is

shown

as

securities

lending

income

—

affiliated

—

net

in

the

Statement

of

Operations.

For

the year

ended December

31,

2021,

the

Fund

paid

BIM $61,349

for

securities

lending agent

services. 

Interfund

Lending:

In

accordance

with

an

exemption

order

("the

Order")

from

the

SEC,

the

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by

the

Fund’s

investment

policies

and

restrictions.

The

Fund

is

currently

permitted

to borrow

under

the

Interfund

Lending

Program. 

A

lending

BlackRock

fund

may

lend

in

aggregate

up

to

15%

of

its

net

assets

but

may

not

lend

more

than

5%

of

its

net

assets

to

any

one

borrowing

fund

through

the

Interfund

Lending

Program.

A

borrowing

BlackRock

fund

may

not

borrow

through

the

Interfund

Lending

Program

or

from

any

other

source

more

than

33

1/3%

of

its

total

assets

(or

any

lower

threshold

provided

for

by

the fund’s

investment

restrictions).

If

a

borrowing

BlackRock

fund’s

total

outstanding

borrowings

exceed

10%

of

its

total

assets,

each

of

its

outstanding

interfund

loans

will

be

subject

to

collateralization

of

at

least

102%

of

the

outstanding

principal

value

of

the

loan.

All

interfund

loans

are

for

temporary

or

emergency

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

During the

period

ended

December

31,

2021,

the

Fund

did

not

participate

in

the

Interfund

Lending

Program.

Trustees

and

Officers:

Certain

trustees

and/or

officers

of

the

Trust

are

directors

and/or

officers

of

BlackRock

or

its

affiliates.

The

Fund

reimburses

the

Manager

for

a

portion

of

the

compensation

paid

to

the

Trust's

Chief

Compliance

Officer,

which

is

included

in

Trustees

and

Officer

in

the

Statement

of

Operations.

Other

Transactions:

The

Fund

may

purchase

securities

from,

or

sell

securities

to,

an

affiliated

fund

provided

the

affiliation

is

due

solely

to

having

a

common

investment

adviser,

common

officers,

or

common

trustees.

For

the

year

ended

December

31

,

2021,

the

purchase

and

sale

transactions

and

any

net

realized

gains

(losses)

w

ith

an

affiliated

fund

in

compliance

with

Rule

17a-7

under

the

1940

Act

were

as

follows:

7.

PURCHASES

AND

SALES 

For

the year

ended

December

31,

2021,

purchases

and

sales

of

investments,

excluding

short-term

investments

and

equity-linked

notes, were $603,957,013

and

$338,034,642,

respectively.

For

the

year

ended

December

31,

2021,

purchases

and

sales

related

to

equity-linked

notes

were

$383,653,419

and

$381,135,145.

8.

INCOME

TAX

INFORMATION 

It

is

the

Fund’s

policy

to

comply

with

the

requirements

of

the

Internal

Revenue

Code

of

1986,

as

amended,

applicable

to

regulated

investment

companies,

and

to

distribute

substantially

all

of

its

taxable

income

to

its

shareholders.

Therefore,

no

U.S.

federal

income

tax

provision

is

required. 

The

Fund

files

U.S.

federal

and

various

state

and

local

tax

returns.

No

income

tax

returns

are

currently

under

examination.

The

statute

of

limitations

on

the

Fund's

U.S.

federal

tax

returns

generally

remains

open

for

a

period

of

three

fiscal

years

after

they

are

filed.

The

statutes

of

limitations

on

the

Fund’s

state

and

local

tax

returns

may

remain

open

for

an

additional

year

depending

upon

the

jurisdiction. 

Management

has

analyzed

tax

laws

and

regulations

and

their

application

to

the Fund

as

of

December

31,

2021,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Fund's

financial

statements.

The

tax

character

of

distributions

paid

was

as

follows: 

Purchases

...............................................................................................................

$

415,682‌

Sales

...................................................................................................................

—‌

Net

Realized

Gain

..........................................................................................................

—‌

Fund

Name

Year

Ended

12/31/21

Year

Ended

12/31/20

BlackRock

Managed

Income

Fund

Ordinary

income

............................................................................................

$

38,845,301‌

$

20,265,698‌

Long-term

capital

gains

........................................................................................

6,614,098‌

—‌

$

45,459,399‌

$

20,265,698‌

Notes

to

Financial

Statements

(continued)

71

Notes

to

Financial

Statements

As

of

December

31,

2021,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:

(a)

The

difference

between

book-basis

and

tax-basis

net

unrealized

gains

(losses)

was

attributable

primarily

to

the

tax

deferral

of

losses

on

wash

sales,

the

realization

for

tax

purposes

of

unrealized

gains

(losses)

on

certain

futures,

amortization

methods

for

premiums

and

discounts

on

fixed

income

securities,

the

classification

of

investments

and

the

accounting

for

swap

agreements.

During

the

year

ended

December

31,

2021,

the

Fund

utilized

the

following

amount

of

its

capital

loss

carryforward.

As

of

December

31,

2021, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

BlackRock

Funds

II,

on

behalf

of

the

Fund,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”),

is

a

party

to

a

364-day,

$2.25

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Fund

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Fund,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

one-month

LIBOR

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum

or

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed.

The

agreement

expires

in

April

2022

unless

extended

or

renewed.

These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the

year

ended

December

31,

2021,

the

Fund

did

not

borrow

under

the

credit

agreement.

10.

 PRINCIPAL

RISKS 

In

the

normal

course

of

business,

the

Fund

invests

in

securities

or

other

instruments

and

may

enter

into

certain

transactions,

and

such

activities

subject

the

Fund

to

various

risks,

including

among

others,

fluctuations

in

the

market

(market

risk)

or

failure

of

an

issuer

to

meet

all

of

its

obligations.

The

value

of

securities

or

other

instruments

may

also

be

affected

by

various

factors,

including,

without

limitation:

(i)

the

general

economy;

(ii)

the

overall

market

as

well

as

local,

regional

or

global

political

and/or

social

instability;

(iii)

regulation,

taxation

or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

and

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Fund

and its

investments.

The

Fund’s

prospectus

provides

details

of

the

risks

to

which

the

Fund

is

subject. 

The

Fund

may

be

exposed

to

additional

risks

when

reinvesting

cash

collateral

in

money

market

funds

that

do

not

seek

to

maintain

a

stable

NAV

per

share

of

$1.00,

which

may

be

subject

to

redemption

gates

or

liquidity

fees

under

certain

circumstances.

Market Risk:

The

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

the

Fund

to

reinvest

in

lower

yielding

securities. The

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

the

Fund’s

portfolio

will

decline

if

the Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

the

Fund

portfolio’s

current

earnings

rate.

An

outbreak

of

respiratory

disease

caused

by

a

novel

coronavirus

has

developed

into

a

global

pandemic

and

has

resulted

in

closing

borders,

quarantines,

disruptions

to

supply

chains

and

customer

activity,

as

well

as

general

concern

and

uncertainty.

The

impact

of

this

pandemic,

and

other

global

health

crises

that

may

arise

in

the

future,

could

affect

the

economies

of

many

nations,

individual

companies

and

the

market

in

general

in

ways

that

cannot

necessarily

be

foreseen

at

the

present

time.

This

pandemic

may

result

in

substantial

market

volatility

and

may

adversely

impact

the

prices

and

liquidity

of

a

fund's

investments.

The duration

of

this

pandemic

and

its

effects

cannot

be

determined

with

certainty.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. The

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that the

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. The

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

the

Fund’s

NAV

to

experience

Fund

Name

Undistributed

Ordinary

Income

Undistributed

Long-Term

Capital

Gains

Net

Unrealized

Gains

(Losses)

(a)

Total

BlackRock

Managed

Income

Fund

................................................

$

416,571‌

$

1,371,008‌

$

21,128,244‌

$

22,915,823‌

Fund

Name

Amount

Utilized

BlackRock

Managed

Income

Fund

.........................................................................................

$

999,067‌

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

BlackRock

Managed

Income

Fund

......................................

$

989,005,190‌

$

29,016,336‌

$

(7,941,094‌)

$

21,075,242‌

Notes

to

Financial

Statements

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

72

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of the

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which the

Fund

invests. 

The

price the

Fund

could

receive

upon

the

sale

of

any

particular

portfolio

investment

may

differ

from the

Fund’s

valuation

of

the

investment,

particularly

for

securities

that

trade

in

thin

or

volatile

markets

or

that

are

valued

using

a

fair

valuation

technique

or

a

price

provided

by

an

independent

pricing

service.

Changes

to

significant

unobservable

inputs

and

assumptions

(i.e.,

publicly

traded

company

multiples,

growth

rate,

time

to

exit)

due

to

the

lack

of

observable

inputs

may

significantly

impact

the

resulting

fair

value

and

therefore

the

Fund’s

results

of

operations.

As

a

result,

the

price

received

upon

the

sale

of

an

investment

may

be

less

than

the

value

ascribed

by the

Fund,

and the

Fund

could

realize

a

greater

than

expected

loss

or

lesser

than

expected

gain

upon

the

sale

of

the

investment. The

Fund’s

ability

to

value

its

investments

may

also

be

impacted

by

technological

issues

and/or

errors

by

pricing

services

or

other

third-party

service

providers. 

Counterparty

Credit

Risk:

The

Fund

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

including

making

timely

interest

and/or

principal

payments

or

otherwise

honoring

its

obligations.

The

Fund

manages

counterparty

credit

risk

by

entering

into

transactions

only

with

counterparties

that

the

Manager

believes

have

the

financial

resources

to

honor

their

obligations

and

by

monitoring

the

financial

stability

of

those

counterparties.

Financial

assets,

which

potentially

expose

the

Fund

to

market,

issuer

and

counterparty

credit

risks,

consist

principally

of

financial

instruments

and

receivables

due

from

counterparties.

The

extent

of

the

Fund’s

exposure

to

market,

issuer

and

counterparty

credit

risks

with

respect

to

these

financial

assets

is

approximately

their

value

recorded

in

the

Statement

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Fund. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

With

exchange-traded

options

purchased,

exchange-traded

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Fund

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, the

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

cleared

swaps

with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Fund. 

Concentration

Risk:

 A

diversified

portfolio,

where

this

is appropriate

and

consistent

with

a

fund's

objectives,

minimizes

the

risk

that

a

price

change

of

a

particular

investment

will

have

a

material

impact

on

the

NAV

of

a

fund.

The

investment

concentrations

within

the

Fund's

portfolio

are

disclosed

in

its Schedule

of

Investments.

The

Fund

invests

a

significant

portion

of

its

assets

in

high

yield

securities.

High

yield

securities

that

are

rated

below

investment-grade

(commonly

referred

to

as

“junk

bonds”)

or

are

unrated

may

be

deemed

speculative,

involve

greater

levels

of

risk

than

higher-rated

securities

of

similar

maturity

and

are

more

likely

to

default.

High

yield

securities

may

be

issued

by

less

creditworthy

issuers,

and

issuers

of

high

yield

securities

may

be

unable

to

meet

their

interest

or

principal

payment

obligations.

High

yield

securities

are

subject

to

extreme

price

fluctuations,

may

be

less

liquid

than

higher

rated

fixed-income

securities,

even

under

normal

economic

conditions,

and

frequently

have

redemption

features. 

The

Fund

invests

a

significant

portion

of

its

assets

in

fixed-income

securities

and/or

uses

derivatives

tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may

affect

the

value

and/or

liquidity

of

such

investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

increase

as

interest

rates

fall

and

decrease

as

interest

rates

rise.

The

Fund

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the

current

period

of

historically

low

rates.

LIBOR

Transition

Risk:

The

United

Kingdom’s

Financial

Conduct

Authority

announced

a phase

out of

LIBOR.

Although

many

LIBOR

rates

will

cease

to

be

published

or

no

longer

will

be

representative

of

the

underlying

market

they

seek

to

measure

after

December

31,

2021,

a

selection

of

widely

used

USD

LIBOR

rates

will

continue

to

be

published

through

June

2023

in

order

to

assist

with

the

transition.

The

Fund

may

be

exposed

to

financial

instruments

tied

to

LIBOR

to

determine

payment

obligations,

financing

terms,

hedging

strategies

or

investment

value.

The

transition

process

away

from

LIBOR

might

lead

to

increased

volatility

and

illiquidity

in

markets

for,

and

reduce

the

effectiveness

of

new

hedges

placed

against

instruments

whose

terms

currently

include

LIBOR.

The

ultimate

effect

of

the

LIBOR

transition

process

on

the

Fund

is

uncertain. 

Notes

to

Financial

Statements

(continued)

73

Notes

to

Financial

Statements

11.

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

12.

SUBSEQUENT

EVENTS 

Management

has

evaluated

the

impact

of

all

subsequent

events

on

the

Fund

through

the

date

the

financial

statements

were

issued

and

has

determined

that

there

were

no

subsequent

events

requiring

adjustment

or

additional

disclosure

in

the

financial

statements.

Year

Ended

12/31/21

Year

Ended

12/31/20

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

BlackRock

Managed

Income

Fund

Institutional

Shares

sold

.............................................

22,708,323‌

$

236,175,835‌

24,684,729‌

$

241,044,536‌

Shares

issued

in

reinvestment

of

distributions

........................

2,069,994‌

21,453,907‌

965,987‌

9,562,431‌

Shares

redeemed

.........................................

(12,287,499‌)

(127,910,759‌)

(14,508,164‌)

(139,835,928‌)

12,490,818‌

$

129,718,983‌

11,142,552‌

$

110,771,039‌

Investor

A

Shares

sold

and

automatic

conversion

of

shares

......................

21,582,431‌

$

224,980,947‌

15,380,799‌

$

152,633,118‌

Shares

issued

in

reinvestment

of

distributions

........................

1,706,724‌

17,686,847‌

729,093‌

7,210,303‌

Shares

redeemed

.........................................

(9,784,445‌)

(101,955,327‌)

(9,619,172‌)

(93,859,380‌)

13,504,710‌

$

140,712,467‌

6,490,720‌

$

65,984,041‌

Investor

C

Shares

sold

.............................................

813,169‌

$

8,483,411‌

926,127‌

$

9,225,445‌

Shares

issued

in

reinvestment

of

distributions

........................

115,335‌

1,195,073‌

65,043‌

643,147‌

Shares

redeemed

and

automatic

conversion

of

shares

..................

(628,997‌)

(6,550,879‌)

(737,194‌)

(7,217,940‌)

299,507‌

$

3,127,605‌

253,976‌

$

2,650,652‌

Class

K

Shares

sold

.............................................

3,303,108‌

$

34,517,332‌

3,468,249‌

$

34,614,098‌

Shares

issued

in

reinvestment

of

distributions

........................

443,099‌

4,602,542‌

231,497‌

2,291,849‌

Shares

redeemed

.........................................

(1,940,445‌)

(20,261,255‌)

(1,453,502‌)

(14,281,024‌)

1,805,762‌

$

18,858,619‌

2,246,244‌

$

22,624,923‌

28,100,797‌

$

292,417,674‌

20,133,492‌

$

202,030,655‌

Report

of

Independent

Registered

Public

Accounting

Firm

2021

BlackRock

Annual

Report

to

Shareholders

74

To

the

Shareholders

of

BlackRock

Managed

Income

Fund

and

Board

of

Trustees

of

BlackRock

Funds

II:

Opinion

on

the

Financial

Statements

and

Financial

Highlights

We

have

audited

the

accompanying

statement

of

assets

and

liabilities

of

BlackRock

Managed

Income

Fund

of

BlackRock

Funds

II

(the

“Fund”),

including

the

schedule

of

investments,

as

of

December

31,

2021,

the

related

statement

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

and

the

related

notes.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

as

of

December

31,

2021,

and

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

its

internal

control

over

financial

reporting.

As

part

of

our

audits

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2021,

by

correspondence

with

the

custodian,

agent

banks,

and

brokers;

when

replies

were

not

received

from

agent

banks

or

brokers,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

Deloitte

&

Touche

LLP

Boston,

Massachusetts

February

24,

2022

We

have

served

as

the

auditor

of

one

or

more

BlackRock

investment

companies

since

1992.

Important

Tax

Information

(unaudited)

75

Important

Tax

Information

The

following

amount,

or maximum

amount

allowable

by

law, is

hereby

designated

as

qualified

dividend

income

for

individuals

for

the

fiscal

year

ended

December

31,

2021:

The

following

amount,

or

maximum

amount

allowable

by

law, is

hereby

designated

as

qualified

business

income

for

individuals

for

the

fiscal

year

ended

December

31,

2021:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

capital

gain

dividends,

subject

to

a

long-term

capital

gains

tax

rate

of

not

greater

than

20%,

for

the

fiscal

year

ended

December

31,

2021:

The

following

percentage,

or

maximum

percentage

allowable

by

law,

of

ordinary

income

distributions

paid

during

the

fiscal

year

ended

December

31,

2021

qualified

for

the

dividends-received

deduction

for

corporate

shareholders:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

interest

income

eligible

to

be

treated

as

a

Section

163(j)

interest

dividend

for

the

fiscal

year

ended

December

31,

2021:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

interest-related

dividends

and

qualified

short-term

capital

gains

eligible

for

exemption

from

U.S.

withholding

tax

for

nonresident

aliens

and

foreign

corporations

for

the

fiscal

year

ended

December

31,

2021:

Fund

Name

Qualified

Dividend

Income

BlackRock

Managed

Income

Fund

.......................................................................................

$

3,828,894‌

Fund

Name

Qualified

Business

Income

BlackRock

Managed

Income

Fund

.......................................................................................

$

19,334‌

Fund

Name

20%

Rate

Long-Term

Capital

Gain

Dividends

BlackRock

Managed

Income

Fund

.......................................................................................

$

6

,

614

,

098‌

Fund

Name

Dividends-Received

Deduction

BlackRock

Managed

Income

Fund

.......................................................................................

5.39‌%

Fund

Name

Interest

Dividends

BlackRock

Managed

Income

Fund

.......................................................................................

$

17

,

195

,

808‌

Fund

Name

Interest-Related

Dividends

Qualified

Short-Term

Capital

Gain

Dividends

BlackRock

Managed

Income

Fund

....................................................................

$

14,035,204‌

$

12

,

224

,

047‌

Statement

Regarding

Liquidity

Risk

Management

Program

2021

BlackRock

Annual

Report

to

Shareholders

76

In

compliance

with

Rule

22e-4

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“Liquidity

Rule”),

BlackRock

Funds

II

(the

“Trust”)

has

adopted

and

implemented

a

liquidity

risk

management

program

(the

“Program”)

for

BlackRock

Managed

Income

Fund

(the

“Fund”),

a

series

of

the

Trust,

which

is

reasonably

designed

to

assess

and

manage

the

Fund’s

liquidity

risk.

The

Board

of

Trustees

(the

“Board”)

of

the

Trust,

on

behalf

of

the

Fund,

met

on

November

9-10,

2021

(the

“Meeting”)

to

review

the

Program.

The

Board

previously

appointed

BlackRock

Advisors,

LLC

or

BlackRock

Fund

Advisors

(“BlackRock”),

each

an

investment

adviser

to

certain

BlackRock

funds,

as

the

program

administrator

for

the

Fund’s

Program,

as

applicable.

BlackRock

also

previously

delegated

oversight

of

the

Program

to

the

40

Act

Liquidity

Risk

Management

Committee

(the

“Committee”).

At

the

Meeting,

the

Committee,

on

behalf

of

BlackRock,

provided

the

Board

with

a

report

that

addressed

the

operation

of

the

Program

and

assessed

its

adequacy

and

effectiveness

of

implementation,

including

the

management

of

the

Fund’s

Highly

Liquid

Investment

Minimum

(“HLIM”)

where

applicable,

and

any

material

changes

to

the

Program

(the

“Report”).

The

Report

covered

the

period

from

October

1,

2020

through

September

30,

2021

(the

“Program

Reporting

Period”).

The

Report

described

the

Program’s

liquidity

classification

methodology

for

categorizing

the

Fund’s

investments

(including

derivative

transactions)

into

one

of

four

liquidity

buckets.

It

also

referenced

the

methodology

used

by

BlackRock

to

establish

the

Fund’s

HLIM

and

noted

that

the

Committee

reviews

and

ratifies

the

HLIM

assigned

to

each

Fund

no

less

frequently

than

annually.

The

Report

also

discussed

notable

events

affecting

liquidity

over

the

Program

Reporting

Period,

including

the

imposition

of

capital

controls

in

certain

countries.

The

Report

noted

that

the

Program

complied

with

the

key

factors

for

consideration

under

the

Liquidity

Rule

for

assessing,

managing

and

periodically

reviewing

the

Fund’s

liquidity

risk,

as

follows:

a)

The

Fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

whether

the

Fund’s

strategy

is

appropriate

for

an

open-end

fund

structure

with

a

focus

on

funds

with

more

significant

and

consistent

holdings

of

less

liquid

and

illiquid

assets.

The

Committee

also

factored

a

fund’s

concentration

in

an

issuer

into

the

liquidity

classification

methodology

by

taking

issuer

position

sizes

into

account.

Where

a

fund

participated

in

borrowings

for

investment

purposes

(such

as

tender

option

bonds

or

reverse

repurchase

agreements),

such

borrowings

were

factored

into

the

Program’s

calculation

of

a

fund’s

liquidity

bucketing.

Derivative

exposure

was

also

considered

in

such

calculation.

b)

Short-term

and

long-term

cash

flow

projections

during

both

normal

and

reasonably

foreseeable

stressed

conditions

.

During

the

Program

Reporting

Period,

the

Committee

reviewed

historical

redemption

activity

and

used

this

information

as

a

component

to

establish

the

Fund’s

reasonably

anticipated

trading

size

(“RATS”).

The

Fund

has

adopted

an

in-kind

redemption

policy

which

may

be

utilized

to

meet

larger

redemption

requests.

The

Committee

may

also

take

into

consideration

a

fund’s

shareholder

ownership

concentration

(which,

depending

on

product

type

and

distribution

channel,

may

or

may

not

be

available),

a

fund’s

distribution

channels,

and

the

degree

of

certainty

associated

with

a

fund’s

short-term

and

long-term

cash

flow

projections.

c)

Holdings

of

cash

and

cash

equivalents,

as

well

as

borrowing

arrangements

.

The

Committee

considered

the

terms

of

the

credit

facility

committed

to

the

Fund,

the

financial

health

of

the

institution

providing

the

facility

and

the

fact

that

the

credit

facility

is

shared

among

multiple

funds

(including

that

a

portion

of

the

aggregate

commitment

amount

is

specifically

designated

for

BlackRock

Floating

Rate

Income

Portfolio,

a

series

of

BlackRock

Funds

V).

The

Committee

also

considered

other

types

of

borrowing

available

to

the

Fund,

such

as

the

ability

to

use

reverse

repurchase

agreements

and

interfund

lending,

as

applicable.

There

were

no

material

changes

to

the

Program

during

the

Program

Reporting

Period

other

than

the

enhancement

of

certain

model

components

in

the

Program’s

methodology.

The

Report

provided

to

the

Board

stated

that

the

Committee

concluded

that

based

on

the

operation

of

the

functions,

as

described

in

the

Report,

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

Trustee

and

Officer

Information

77

Trustee

and

Officer

Information

Independent

Trustees

(a)

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

Mark

Stalnecker

1951

Chair

of

the

Board

and

Trustee

(Since

2019)

Chief

Investment

Officer,

University

of

Delaware

from

1999

to

2013;

Trustee

and

Chair

of

the

Finance

and

Investment

Committees,

Winterthur

Museum

and

Country

Estate

from

2005

to

2016;

Member

of

the

Investment

Committee,

Delaware

Public

Employees’

Retirement

System

since

2002;

Member

of

the

Investment

Committee,

Christiana

Care

Health

System

from

2009

to

2017;

Member

of

the

Investment

Committee,

Delaware

Community

Foundation

from

2013

to

2014;

Director

and

Chair

of

the

Audit

Committee,

SEI

Private

Trust

Co.

from

2001

to

2014.

30

RICs

consisting

of

159

Portfolios

None

Bruce

R.

Bond

1946

Trustee

(Since

2007)

Board

Member,

Amsphere

Limited

(software)

since

2018;

Trustee

and

Member

of

the

Governance

Committee,

State

Street

Research

Mutual

Funds

from

1997

to

2005;

Board

Member

of

Governance,

Audit

and

Finance

Committee,

Avaya

Inc.

(computer

equipment)

from

2003

to

2007.

30

RICs

consisting

of

159

Portfolios

None

Susan

J.

Carter

1956

Trustee

(Since

2019)

Director,

Pacific

Pension

Institute

from

2014

to

2018;

Advisory

Board

Member,

Center

for

Private

Equity

and

Entrepreneurship

at

Tuck

School

of

Business

since

1997;

Senior

Advisor,

Commonfund

Capital,

Inc.

(“CCI”)

(investment

adviser)

in

2015;

Chief

Executive

Officer,

CCI

from

2013

to

2014;

President

&

Chief

Executive

Officer,

CCI

from

1997

to

2013;

Advisory

Board

Member,

Girls

Who

Invest

from

2015

to

2018

and

Board

Member

thereof

since

2018;

Advisory

Board

Member,

Bridges

Fund

Management

since

2016;

Trustee,

Financial

Accounting

Foundation

since

2017;

Practitioner

Advisory

Board

Member,

Private

Capital

Research

Institute

("PCRI")

since

2017;

Lecturer

in

the

Practice

of

Management,

Yale

School

of

Management

since

2019;

Advisor

to

Finance

Committee,

Altman

Foundation

since

2020.

30

RICs

consisting

of

159

Portfolios

None

Collette

Chilton

1958

Trustee

(Since

2019)

Chief

Investment

Officer,

Williams

College

since

2006;

Chief

Investment

Officer,

Lucent

Asset

Management

Corporation

from

1998

to

2006;

Director,

Boys

and

Girls

Club

of

Boston

since

2017;

Director,

B1

Capital

since

2018;

Director,

David

and

Lucile

Packard

Foundation

since

2020.

30

RICs

consisting

of

159

Portfolios

None

Neil

A.

Cotty

1954

Trustee

(Since

2019)

Bank

of

America

Corporation

from

1996

to

2015,

serving

in

various

senior

finance

leadership

roles,

including

Chief

Accounting

Officer

from

2009

to

2015,

Chief

Financial

Officer

of

Global

Banking,

Markets

and

Wealth

Management

from

2008

to

2009,

Chief

Accounting

Officer

from

2004

to

2008,

Chief

Financial

Officer

of

Consumer

Bank

from

2003

to

2004,

Chief

Financial

Officer

of

Global

Corporate

Investment

Bank

from

1999

to

2002.

30

RICs

consisting

of

159

Portfolios

None

Lena

G.

Goldberg

1949

Trustee

(Since

2016)

Director,

Charles

Stark

Draper

Laboratory,

Inc.

since

2013;

Senior

Lecturer,

Harvard

Business

School,

from

2008

to

2021;

FMR

LLC/Fidelity

Investments

(financial

services)

from

1996

to

2008,

serving

in

various

senior

roles

including

Executive

Vice

President

-

Strategic

Corporate

Initiatives

and

Executive

Vice

President

and

General

Counsel;

Partner,

Sullivan

&

Worcester

LLP

from

1985

to

1996

and

Associate

thereof

from

1979

to

1985.

30

RICs

consisting

of

159

Portfolios

None

Henry

R.

Keizer

1956

Trustee

(Since

2016)

Director,

Park

Indemnity

Ltd.

(captive

insurer)

since

2010;

Director,

MUFG

Americas

Holdings

Corporation

and

MUFG

Union

Bank,

N.A.

(financial

and

bank

holding

company)

from

2014

to

2016;

Director,

American

Institute

of

Certified

Public

Accountants

from

2009

to

2011;

Director,

KPMG

LLP

(audit,

tax

and

advisory

services)

from

2004

to

2005

and

2010

to

2012;

Director,

KPMG

International

in

2012,

Deputy

Chairman

and

Chief

Operating

Officer

thereof

from

2010

to

2012

and

U.S.

Vice

Chairman

of

Audit

thereof

from

2005

to

2010;

Global

Head

of

Audit,

KPMGI

(consortium

of

KPMG

firms)

from

2006

to

2010;

Director,

YMCA

of

Greater

New

York

from

2006

to

2010.

30

RICs

consisting

of

159

Portfolios

Hertz

Global

Holdings

(car

rental);

Sealed

Air

Corp.

(packaging);

GrafTech

International

Ltd.

(materials

manufacturing);

Montpelier

Re

Holdings,

Ltd.

(publicly

held

property

and

casualty

reinsurance)

from

2013

to

2015;

WABCO

(commercial

vehicle

safety

systems)

from

2015

to

2020

Trustee

and

Officer

Information

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

78

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

Cynthia

A.

Montgomery

1952

Trustee

(Since

2019)

Professor,

Harvard

Business

School

since

1989.

30

RICs

consisting

of

159

Portfolios

Newell

Rubbermaid,

Inc.

(manufacturing)

from

1995

to

2016

Donald

C.

Opatrny

1952

Trustee

(Since

2015)

Trustee,

Vice

Chair,

Member

of

the

Executive

Committee

and

Chair

of

the

Investment

Committee,

Cornell

University

from

2004

to

2019;

President,

Trustee

and

Member

of

the

Investment

Committee,

The

Aldrich

Contemporary

Art

Museum

from

2007

to

2014;

Member

of

the

Board

and

Investment

Committee,

University

School

from

2007

to

2018;

Member

of

the

Investment

Committee,

Mellon

Foundation

from

2009

to

2015;

Trustee,

Artstor

(a

Mellon

Foundation

affiliate)

from

2010

to

2015;

President

and

Trustee,

the

Center

for

the

Arts,

Jackson

Hole

from

2011

to

2018;

Director,

Athena

Capital

Advisors

LLC

(investment

management

firm)

since

2013;

Trustee

and

Chair

of

the

Investment

Committee,

Community

Foundation

of

Jackson

Hole

since

2014;

Member

of

Affordable

Housing

Supply

Board

of

Jackson,

Wyoming

since

2017;

Member,

Investment

Funds

Committee,

State

of

Wyoming

since

2017;

Trustee,

Phoenix

Art

Museum

since

2018;

Trustee,

Arizona

Community

Foundation

and

Member

of

Investment

Committee

since

2020.

30

RICs

consisting

of

159

Portfolios

None

Joseph

P.

Platt

1947

Trustee

(Since

2019)

General

Partner,

Thorn

Partners,

LP

(private

investments)

since

1998;

Director,

WQED

Multi-Media

(public

broadcasting

not-for-

profit)

since

2001;

Chair,

Basic

Health

International

(non-profit)

since

2015.

30

RICs

consisting

of

159

Portfolios

Greenlight

Capital

Re,

Ltd.

(reinsurance

company);

Consol

Energy

Inc.

Kenneth

L.

Urish

1951

Trustee

(Since

2019)

Managing

Partner,

Urish

Popeck

&

Co.,

LLC

(certified

public

accountants

and

consultants)

since

1976;

Past-Chairman

of

the

Professional

Ethics

Committee

of

the

Pennsylvania

Institute

of

Certified

Public

Accountants

and

Committee

Member

thereof

since

2007;

Member

of

External

Advisory

Board,

The

Pennsylvania

State

University

Accounting

Department

since

founding

in

2001;

Principal,

UP

Strategic

Wealth

Investment

Advisors,

LLC

since

2013;

Trustee,

The

Holy

Family

Institute

from

2001

to

2010;

President

and

Trustee,

Pittsburgh

Catholic

Publishing

Associates

from

2003

to

2008;

Director,

Inter-Tel

from

2006

to

2007;

Member,

Advisory

Board,

ESG

Competent

Boards

since

2020.

30

RICs

consisting

of

159

Portfolios

None

Claire

A.

Walton

1957

Trustee

(Since

2019)

Chief

Operating

Officer

and

Chief

Financial

Officer

of

Liberty

Square

Asset

Management,

LP

from

1998

to

2015;

General

Partner

of

Neon

Liberty

Capital

Management,

LLC

since

2003;

Director,

Boston

Hedge

Fund

Group

from

2009

to

2018;

Director,

Woodstock

Ski

Runners

since

2013;

Director,

Massachusetts

Council

on

Economic

Education

from

2013

to

2015.

30

RICs

consisting

of

159

Portfolios

None

Independent

Trustees

(a)

(continued)

Trustee

and

Officer

Information

(continued)

79

Trustee

and

Officer

Information

Interested

Trustees

(a)(d)

(a)

The

address

of

each

Trustee

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Each

Independent

Trustee

holds

office

until

his

or

her

successor

is

duly

elected

and

qualifies

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

charter

or

statute,

or

until

December

31

of

the

year

in

which

he

or

she

turns

75.

Trustee

who

are

"interested

persons,"

as

defined

in

the

1940

Act,

serve

until

their

successor

is

duly

elected

and

qualifies

or

until

their

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

statute,

or

until

December

31

of

the

year

in

which

they

turn

72.

The

Board

may

determine

to

extend

the

terms

of

Independent

Trustee

on

a

case-by-case

basis,

as

appropriate.

(c)

Following

the

combination

of

Merrill

Lynch

Investment

Managers,

L.P.

(“MLIM”)

and

BlackRock,

Inc.

in

September

2006,

the

various

legacy

MLIM

and

legacy

BlackRock

fund

boards

were

realigned

and

consolidated

into

three

new

fund

boards

in

2007.

In

addition,

effective

January

1,

2019,

three

BlackRock

Fund

Complexes

were

realigned

and

consolidated

into

two

BlackRock

Fund

Complexes.

As

a

result,

although

the

chart

shows

the

year

that

each

Independent

Trustee

joined

the

Board,

certain

Independent

Trustee

first

became

members

of

the

boards

of

other

BlackRock-advised

Funds,

legacy

MLIM

funds

or

legacy

BlackRock

funds

as

follows:

Bruce

R.

Bond,

2005;

Susan

J.

Carter,

2016;

Collette

Chilton,

2015;

Neil

A.

Cotty,

2016;

Cynthia

A.

Montgomery,

1994;

Joseph

P.

Platt,

1999;

Mark

Stalnecker,

2015;

Kenneth

L.

Urish,

1999;

Claire

A.

Walton,

2016.

(d)

Mr.

Fairbairn

and

Mr.

Perlowski

are

both

“interested

persons,”

as

defined

in

the

1940

Act,

of

the

Trust

based

on

their

positions

with

BlackRock,

Inc.

and

its

affiliates.

Mr.

Fairbairn

and

Mr.

Perlowski

are

also

board

members

of

the

BlackRock

Fixed-Income

Complex.

(e)

Mr.

Perlowski

is

also

a

trustee

of

the

BlackRock

Credit

Strategies

Fund.

and

BlackRock

Private

Investments

Fund.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

Robert

Fairbairn

1965

Trustee

(Since

2015)

Vice

Chairman

of

BlackRock,

Inc.

since

2019;

Member

of

BlackRock's

Global

Executive

and

Global

Operating

Committees;

Co-Chair

of

BlackRock's

Human

Capital

Committee;

Senior

Managing

Director

of

BlackRock,

Inc.

from

2010

to

2019;

oversaw

BlackRock's

Strategic

Partner

Program

and

Strategic

Product

Management

Group

from

2012

to

2019;

Member

of

the

Board

of

Managers

of

BlackRock

Investments,

LLC

from

2011

to

2018;

Global

Head

of

BlackRock's

Retail

and

iShares

®

businesses

from

2012

to

2016.

103

RICs

consisting

of

261

Portfolios

None

John

M.

Perlowski

(e)

1964

Trustee

(Since

2015);

President

and

Chief

Executive

Officer

(Since

2010)

Managing

Director

of

BlackRock,

Inc.

since

2009;

Head

of

BlackRock

Global

Accounting

and

Product

Services

since

2009;

Advisory

Director

of

Family

Resource

Network

(charitable

foundation)

since

2009.

105

RICs

consisting

of

263

Portfolios

None

Trustee

and

Officer

Information

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

80

Officers

Who

Are

Not

Trustees

(a)

(a)

The

address

of

each

Officer

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Officers

of

the

Trust

serve

at

the

pleasure

of

the

Board.

Further

information

about

the

Trust's

Trustee

and

Officers

is

available

in

the

Trust's

Statement

of

Additional

Information,

which

can

be

obtained

without

charge

by

calling

(800)

441-7762.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

Principal

Occupation(s)

During

Past

Five

Years

Jennifer

McGovern

1977

Vice

President

(Since

2014)

Managing

Director

of

BlackRock,

Inc.

since

2016;

Director

of

BlackRock,

Inc.

from

2011

to

2015;

Head

of

Americas

Product

Development

and

Governance

for

BlackRock’s

Global

Product

Group

since

2019;

Head

of

Product

Structure

and

Oversight

for

BlackRock's

U.S.

Wealth

Advisory

Group

from

2013

to

2019.

Trent

Walker

1974

Chief

Financial

Officer

(Since

2021)

Managing

Director

of

BlackRock,

Inc.

since

September

2019;

Executive

Vice

President

of

PIMCO

from

2016

to

2019;

Senior

Vice

President

of

PIMCO

from

2008

to

2015;

Treasurer

from

2013

to

2019

and

Assistant

Treasurer

from

2007

to

2017

of

PIMCO

Funds,

PIMCO

Variable

Insurance

Trust,

PIMCO

ETF

Trust,

PIMCO

Equity

Series,

PIMCO

Equity

Series

VIT,

PIMCO

Managed

Accounts

Trust,

2

PIMCO-sponsored

interval

funds

and

21

PIMCO-sponsored

closed-end

funds.

Jay

M.

Fife

1970

Treasurer

(Since

2007)

Managing

Director

of

BlackRock,

Inc.

since

2007.

Charles

Park

1967

Chief

Compliance

Officer

(Since

2014)

Anti-Money

Laundering

Compliance

Officer

for

certain

BlackRock-advised

Funds

from

2014

to

2015;

Chief

Compliance

Officer

of

BlackRock

Advisors,

LLC

and

the

BlackRock-advised

Funds

in

the

BlackRock

Multi-Asset

Complex

and

the

BlackRock

Fixed-Income

Complex

since

2014;

Principal

of

and

Chief

Compliance

Officer

for

iShares

®

Delaware

Trust

Sponsor

LLC

since

2012

and

BlackRock

Fund

Advisors

(“BFA”)

since

2006;

Chief

Compliance

Officer

for

the

BFA-advised

iShares

®

exchange

traded

funds

since

2006;

Chief

Compliance

Officer

for

BlackRock

Asset

Management

International

Inc.

since

2012.

Lisa

Belle

1968

Anti-Money

Laundering

Compliance

Officer

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2019;

Global

Financial

Crime

Head

for

Asset

and

Wealth

Management

of

JP

Morgan

from

2013

to

2019;

Managing

Director

of

RBS

Securities

from

2012

to

2013;

Head

of

Financial

Crimes

for

Barclays

Wealth

Americas

from

2010

to

2012.

Janey

Ahn

1975

Secretary

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Director

of

BlackRock,

Inc.

from

2009

to

2017.

Effective

December

31,

2021,

Bruce

R.

Bond

retired

as

a

Trustee

of

the

Trust.

Additional

Information

81

Additional

Information

Regulation

Regarding

Derivatives

On

October

28,

2020,

the

Securities

and

Exchange

Commission

(the

“SEC”)

adopted regulations

governing

the

use

of

derivatives

by

registered

investment

companies

(“Rule

18f-4”).

The

Fund

will

be

required

to

implement

and

comply

with

Rule

18f-4

by

August

19, 2022.

Once

implemented,

Rule

18f-4

will

impose

limits

on

the

amount

of

derivatives

a

fund

can

enter

into,

eliminate

the

asset

segregation

framework

currently

used

by

funds

to

comply

with

Section

18

of

the

1940

Act,

treat

derivatives

as

senior

securities

and

require

funds

whose

use

of

derivatives

is

more

than

a

limited

specified

exposure

amount

to

establish

and

maintain

a

comprehensive

derivatives

risk

management

program

and

appoint

a

derivatives

risk

manager.

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Fund

may

be

found

on

BlackRock’s

website,

which

can

be

accessed

at

blackrock.com.

Any

reference

to

BlackRock’s

website

in

this

report

is

intended

to

allow

investors

public

access

to

information

regarding

the

Fund

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

Householding

The

Fund

will

mail

only

one

copy

of

shareholder

documents,

including

prospectuses,

annual

and

semi-annual

reports,

Rule

30e-3

notices

and

proxy

statements,

to

shareholders

with

multiple

accounts

at

the

same

address.

This

practice

is

commonly

called

“householding”

and

is

intended

to

reduce

expenses

and

eliminate

duplicate

mailings

of

shareholder

documents.

Mailings

of

your

shareholder

documents

may

be

householded

indefinitely

unless

you

instruct

us

otherwise.

If

you

do

not

want

the

mailing

of

these

documents

to

be

combined

with

those

for

other

members

of

your

household,

please

call

the

Fund at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments 

The

Fund

files

its

complete

schedule

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT is

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

the

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/

fundreports

.

Availability

of

Proxy

Voting

Policies,

Procedures and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

information

about

how

the

Fund

voted

proxies

relating

to

securities

held

in

the

Fund's

portfolio

during

the

most

recent

12-month

period

ended

June

30 is

available

without

charge,

upon

request (1)

by

calling

(800)

441-

7762

;

(2)

on

the

BlackRock

website

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800)

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

Additional

Information

(continued)

2021

BlackRock

Annual

Report

to

Shareholders

82

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Adviser

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10022

Legal

Counsel

Sidley

Austin

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

Glossary

of

Terms

Used

in

this

Report

83

Glossary

of

Terms

Used

in

this

Report

Currency

Abbreviation

GBP

British

Pound

JPY

Japanese

Yen

USD

United

States

Dollar

Portfolio

Abbreviation

CLO

Collateralized

Loan

Obligation

CMT

Constant

Maturity

Treasury

DAC

Designated

Activity

Company

ETF

Exchange-Traded

Fund

LIBOR

London

Interbank

Offered

Rate

MBS

Mortgage-Backed

Securities

MSCI

Morgan

Stanley

Capital

International

PIK

Payment-In-Kind

REIT

Real

Estate

Investment

Trust

S&P

Standard

&

Poor's

SOFR

Secured

Overnight

Financing

Rate

Want

to

know

more?

blackrock.com

|

800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

Fund

unless

preceded

or

accompanied

by

the

Fund’s

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Statements

and

other

information

herein

are

as

dated

and

are

subject

to

change.

MIIP-12/21-AR

Item 2 – Code of Ethics –

The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes.  During the period covered by this report, there have been no waivers granted under the code of ethics. The

registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Neil A. Cotty

Henry R. Keizer

Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Managed Income Fund	$59,388	$40,596	$210	$0	$20,300	$20,300	$0	$0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$2,032,000	$1,984,000

1

The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2

The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3

Non-audit fees of $2,032,000 and $1,984,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription.  These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

 (e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

                        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2)  None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g)

The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Managed Income Fund	$20,510	$20,300

              Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End	Previous Fiscal Year End
$2,032,000	$1,984,000

              These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

              (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and

the Affiliated Service Providers

that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

Item 5 –  Audit Committee of Listed Registrant – Not Applicable

Item 6 – Investments

 
(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 –  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 – Exhibits attached hereto

              (a)(1) Code of Ethics – See Item 2

              (a)(2) Section 302 Certifications are attached

              section302

(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4)

Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

section906

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Funds II  

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds II  

Date: February 24, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds II  

Date: February 24, 2022

By:     /s/ Trent Walker

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Funds II  

Date: February 24, 2022