UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-23339

Name of Fund:   BlackRock Funds V

            BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

            BlackRock Strategic Income Opportunities Portfolio

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds V, 55

      East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 12/31/2019

Date of reporting period: 12/31/2019

Item 1 – Report to Stockholders

DECEMBER 31, 2019

2019 Annual Report

BlackRock Funds V

· BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

· BlackRock Strategic Income Opportunities Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured - May Lose Value - No Bank Guarantee

The Markets in Review

Dear Shareholder,

U.S. equities and bonds finished the last year of the decade with impressive returns, putting an exclamation point on a decade of strong performance despite the fears and doubts about the economy that were ultimately laid to rest with unprecedented monetary stimulus and a sluggish yet resolute performance from the U.S. economy. In many ways, it was fitting that the themes of 2019 — geopolitical uncertainty, fears of recession, and decisive monetary stimulus — put the capstone on a decade that was defined by grappling with these competing forces.

Equity and bond markets posted solid returns, particularly in the second half of the year, as investors began to realize that the U.S. economy was maintaining the modest yet steady growth that has characterized this economic cycle. U.S. large cap equities advanced the most, while equities at the high end of the risk spectrum — emerging markets and U.S. small cap — lagged while still posting solid returns.

Fixed-income securities played an important role in diversified portfolios by delivering strong returns amid economic uncertainty, as interest rates declined (and bond prices rose). Long-term bonds, particularly long-term Treasuries, generally posted the strongest returns, as inflation remained low. Investment-grade and high-yield corporate bonds also posted solid returns, as the credit fundamentals in corporate markets remained relatively solid.

As equity performance faltered in late 2018 and global economic growth slowed, the U.S. Federal Reserve (the “Fed”) shifted away from policies designed to decrease inflation in favor of renewed efforts to stimulate economic activity. The Fed left interest rates unchanged in January 2019, then reduced interest rates three times thereafter, starting in July 2019. Similarly, the Fed took measures to support liquidity in short-term lending markets. Following in the Fed’s footsteps, the European Central Bank announced aggressive economic stimulus measures, including lower interest rates and the return of its bond purchasing program. The Bank of Japan signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world despite the headwind of rising geopolitical and trade tensions. Hopes continued to remain high as the current economic expansion became the longest in U.S. history.

Looking ahead, we believe U.S. economic growth will stabilize and gradually improve in 2020. The primary drivers of recent market performance — trade and monetary policies — could take a back seat to a nascent expansion in manufacturing and a recent uptick in global growth. The headwinds of policy uncertainty in 2019 could become tailwinds in 2020 due to pro-cyclical policy shifts.

Overall, we favor increasing investment risk to benefit from the brighter outlook. In addition to having a positive view for equities overall, we favor emerging market equities over developed market equities. Increasing cyclical exposure through value-style investing and maintaining a meaningful emphasis on high-quality companies through quality factors also makes sense for diversified investors. In fixed income, government bonds continue to be important portfolio stabilizers, while emerging market bonds, particularly local currency bonds, offer relatively attractive income opportunities.

In this environment, 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

Rob Kapito President, BlackRock Advisors, LLC Total Returns as of December 31, 2019
	6-Month	12-Month
U.S. large cap equities (S&P 500® Index)	10.92%	31.49%
U.S. small cap equities (Russell 2000® Index)	7.30	25.52
International equities (MSCI Europe, Australasia, Far East Index)	7.01	22.01
Emerging market equities (MSCI Emerging Markets Index)	7.09	18.42
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	1.03	2.28
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	1.36	8.91
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	2.45	8.72
Tax-exempt municipal bonds (S&P Municipal Bond Index)	2.21	7.26
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	3.98	14.32
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

2 THIS PAGE IS NOT PART OF YOUR FUND REPORT

Table of Contents

	Page
The Markets in Review		2
Annual Report:
Fund Summaries		4
About Fund Performance		11
The Benefits and Risks of Leveraging		12
Disclosure of Expenses		12
Derivative Financial Instruments		12
Financial Statements:
Schedules of Investments		13
Statements of Assets and Liabilities		139
Statements of Operations		142
Statements of Changes in Net Assets		144
Financial Highlights		145
Notes to Financial Statements		153
Report of Independent Registered Public Accounting Firm		172
Important Tax Information		173
Statement Regarding Liquidity Risk Management Program		174
Trustee and Officer Information		175
Additional Information		178
Glossary of Terms Used in this Report		180

3

Fund Summary  as of December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Investment Objective

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

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended December 31, 2019, the Fund outperformed the 3-Month LIBOR USD, but it underperformed its reference benchmark, a custom blend of 50% J.P. Morgan EMBI Global Diversified Index/50% J.P. Morgan GBI-EM Global Diversified Index.

Performance is reviewed on an absolute basis due to the nature of the Fund’s strategy. The Fund has the flexibility to invest in fixed income securities and derivatives of any maturity, and denominated in any currency, from issuers located in the emerging markets. As such, the Fund is not managed specifically to a benchmark. The indices listed above are for reference purposes only.

What factors influenced performance?

Emerging market bonds performed very well in 2019. The combination of positive global growth and the accommodative policies of the world’s major central banks fueled a hearty appetite for risk among investors, boosting the returns of higher-yielding segments of the fixed-income market.

A position in Venezuela, which the Fund achieved through the bonds of the quasi-sovereign oil company Petroleos de Venezuela SA(“PDVSA”), detracted from performance. In January 2019, the bonds appreciated on the appointment of opposition leader Juan Guaido as the country’s interim president. However, the United States subsequently applied sanctions related to the trading of government and quasi-sovereign PDVSA debt in order to prevent further capital from reaching current President Maduro and his regime. As a result, the bonds exhibited pronounced price weakness over the remainder of the year.

An allocation to Argentina also detracted from Fund performance after the surprising outcome in the presidential primary election in August sparked a downturn across the nation’s financial markets. The losses were partially offset later in the year, as investors reacted favorably to market-friendly announcements made by the newly elected president Alberto Fernandez.

The Fund used derivatives to manage risk and/or take outright views on interest rates, credit risk and/or foreign exchange trends. The specific instruments the Fund employed included currency forward contracts, which it used to manage currency risk, and credit default swaps, which it used to manage the risk of changing yield spreads. The Fund also used interest-rate futures and derivatives linked to developed-market government bonds to manage the portfolio’s duration. (Duration is a measure of interest rate sensitivity.) The Fund’s use of derivatives was a net detractor to performance, largely due to its efforts to manage credit risk.

On the positive side, the Fund benefited from its positions in higher-yielding bonds within the investment universe, including Egypt and Nigeria. An overweight in Ukraine, achieved through investments in both bonds and warrants, further contributed to Fund results. The country’s debt traded higher on hopes that the election of the market-friendly candidate President Volodymyr Zelensky would lead to reform.

The Fund also benefited from positions in local-currency issues in Hungary and Brazil, as well as its allocation to euro-denominated Romanian bonds. Local-currency debt performed well in 2019, as emerging market central banks moved toward more accommodative monetary policies.

The Fund’s cash position was slightly above average at the end of December. While the investment adviser had a positive view on the emerging markets and was long in both emerging markets currencies and sovereign bonds, the Fund held cash as a way to capitalize on a possible re-emergence of market volatility. The Fund’s cash position had no material impact on Fund performance.

Describe recent portfolio activity.

Throughout the course of the year, the investment adviser actively adjusted the portfolio in response to developments in the world economy and financial markets. In the first quarter of 2019, the investment adviser increased the portfolio’s risk profile as the global macroeconomic backdrop became more supportive. This was accomplished by increasing the Fund’s weighting in local currency issues and adding to its long position in emerging market currencies.

The investment adviser started to reduce risk in April when the escalating trade rhetoric between the United States and China began to pressure investor sentiment. As part of this process, the Fund raised the portfolio’s duration using U.S. Treasury futures. In addition, the Fund reduced exposure to emerging market currencies and increased positions in the U.S. dollar and Japanese yen, both of which are traditional risk-off currencies. The investment adviser also decreased the Fund’s allocation to high-yield issues in favor of investment-grade securities.

After raising the Fund’s risk exposure briefly late in the second quarter of 2019, the investment adviser resumed the process of risk-reduction through the summer in response to slowing global growth. The Fund accomplished this by further reducing the portfolio’s weighting in emerging-market currencies and using derivatives to manage risk. Near the end of the year, the investment adviser began to build the foreign currency exposure back up by adding to the South African rand and the Mexican peso. In addition, the investment adviser reduced the extent of the Fund’s strategies designed to manage credit risk.

Describe portfolio positioning at period end.

The Fund closed the year with the majority of its assets allocated to hard-currency securities, with U.S. dollar positions making up approximately half of the portfolio. The Fund was long in select higher-yielding countries such as Ukraine, Brazil, Egypt, Argentina and Nigeria.

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.

4 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of December 31, 2019 (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

^(a) Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees and administration fees, if any. Institutional Shares do not have a sales charge.

^(b) The Fund invests primarily in a global portfolio of fixed income securities and derivatives of any maturity of issuers located in emerging markets that may be denominated in any currency (on a hedged or un-hedged basis). On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Predecessor Fund’s returns from September 3, 2012 through January 2, 2014 are the returns of the Predecessor Fund when it followed different investment strategies under the name “BlackRock Emerging Market Local Debt Portfolio.” The Predecessor Fund’s returns prior to September 3, 2012 are the returns of the Predecessor Fund when it followed different investment strategies under the name “BlackRock Emerging Market Debt Portfolio.”

^(c) The average interest rate at which a selection of banks in London are prepared to lend to one another in U.S. dollars with a maturity of 3 months.

^(d) An unmanaged index that tracks local currency bonds.

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

FUND SUMMARY 5

Fund Summary  as of December 31, 2019 (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Performance Summary for the Period Ended December 31, 2019

										Average Annual Total Returns (a)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		5.85	%		5.32	%		(3.14	)%		6.45	%		N/A			3.35	%		N/A			4.18	%		N/A
Investor A		5.38			4.76			(3.39	)		6.05			1.81	%		3.05			2.21	%		3.87			3.45	%
Investor C		4.86			4.16			(3.64	)		5.39			4.39			2.29			2.29			3.12			3.12
Class K		5.90			5.43			(3.24	)		6.37			N/A			3.39			N/A			4.25			N/
J.P. Morgan GBI-EM Global Diversified Index		—			—			4.37			13.47			N/A			2.78			N/A			2.71			N/A
J.P. Morgan EMBI Global Diversified Index(b)		—			—			3.34			15.04			N/A			6.24			N/A			6.90			N/A
50% J.P. Morgan GBI-EM Global Diversified Index/50% J.P. Morgan EMBI Global Diversified Index		—			—			3.89			14.31			N/A			4.57			N/A			4.86			N/A
3-Months LIBOR USD		—			—			1.16			2.60			N/A			1.33			N/A			0.83			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” on page 11 for a detailed description of share classes, including any related sales charges and fees. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Predecessor Fund’s returns from September 3, 2012 through January 2, 2014 are the returns of the Predecessor Fund when it followed different investment strategies under the name “BlackRock Emerging Market Local Debt Portfolio.” The Predecessor Fund’s returns prior to September 3. 2012 are the returns of the Predecessor Fund when it followed different investment strategies under the name “BlackRock Emerging Market Debt Portfolio.”

^(b) An index that tracks total returns for U.S. dollar denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities, including Brady bonds, loans and Eurobonds.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical (a)
	Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period (b)		Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period (b)		Annualized Expense Ratio
Institutional	$	1,000.00	$	968.60	$	3.37	$	1,000.00	$	1,021.78	$	3.47		0.68	%
Investor A		1,000.00		966.10		4.61		1,000.00		1,020.52		4.74		0.93
Investor C		1,000.00		963.60		8.31		1,000.00		1,016.74		8.54		1.68
Class K		1,000.00		967.60		3.12		1,000.00		1,022.03		3.21		0.63

^(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 one-half year period shown).

See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.

6 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of December 31, 2019 (continued) BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of     Total Investments (a)
Foreign Government Obligations	84%
Corporate Bonds	11
Foreign Agency Obligations	5

^(a) Total Investments exclude short-term securities.

GEOGRAPHIC ALLOCATION

Country/Geographic Region	Percent of     Total Investments (a)
Ukraine		9%
Hungary		9
Egypt		9
Argentina		8
Nigeria		7
Kazakhstan		6
Mexico		6
Brazil		5
Gabon		5
Ivory Coast		4
Romania		4
Turkey		4
Russia		3
South Africa		2
Costa Rica		2
Indonesia		2
Senegal		2
Venezuela		1
Saudi Arabia		1
Poland		1
Kenya		1
Angola		1
Benin		1
Dominican Republic		1
Lebanon		1
Other (b)		5

^(a) Total Investments exclude short-term securities.

^(b) Includes holdings within countries and geographic regions that are 1% or less of long-term investments. Please refer to Schedule of Investments for such countries.

FUND SUMMARY 7

Fund Summary  as of December 31, 2019 BlackRock Strategic Income Opportunities Portfolio

Investment Objective

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

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended December 31, 2019, the Fund’s Institutional Shares returned 7.62%, Investor A Shares returned 7.31%, Investor C Shares returned 6.54%, and Class K Shares returned 7.82%. For the same period, the Bloomberg Barclays U.S. Universal Index returned 9.29% and the ICE BofAML 3-Month U.S. Treasury Bill Index returned 2.28%.

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

What factors influenced performance?

The Fund’s positioning with respect to overall portfolio duration (and corresponding sensitivity to interest rate changes) contributed positively as interest rates declined over the period. The Fund’s allocation to securitized assets including non-agency residential mortgage-backed securities (“MBS”), commercial MBS and collateralized loan obligations added to Fund performance as well. Exposures to U.S. and foreign corporate credit also were additive to performance as price performance for the asset class was supported by narrowing spreads (the incremental yield provided by lower quality bonds relative to Treasuries) over the period. Finally, the Fund’s relative value strategy contributed to performance within agency MBS during the period.

There were no material detractors from the Fund’s performance over the 12 months.

Describe recent portfolio activity.

Entering 2019, the investment adviser increased the Fund’s duration while moving some of the exposure into the front end of the yield curve on the view that the shift by the Fed to a dovish stance and a near-neutral policy rate were likely to keep U.S. interest rates range bound in the near term. After the sharp underperformance in spread assets in late 2018, the investment adviser took the opportunity to add to the Fund’s investment grade credit allocation. Additionally, the Fund added opportunistically in emerging markets as an accommodative Fed should take upward pressure off the U.S. dollar and allow for easier local monetary policy in those countries. Given the decline in interest rates and higher prepayment rates, the Fund reduced its exposure to agency MBS while maintaining diversified exposure to securitized assets as a source of high-quality income.

As the period progressed, the investment adviser increased the Fund’s exposure to European sovereign debt that could benefit from the European Central Bank’s more accommodative monetary policy, including in Germany, France and Italy. The investment adviser reduced exposure in investment grade corporate credit given rich valuations. In turn, the investment adviser added to the Fund’s agency MBS positions given a robust demand backdrop and attractive value relative to other high-quality spread assets. Finally, the investment adviser also increased exposure to inflation-protected bonds that could benefit from any uptick in global growth.

The Fund’s cash position was slightly elevated at period end as the investment adviser reduced exposures to municipal bonds and investment grade corporate credit in preparation for allocating assets to our relative value mortgage strategy. The Fund also raised cash out of liquidity concerns and to maintain a cushion in the portfolio for potential funding pressure heading into the year end. The Fund’s cash position did not have a material impact on Fund performance.

Describe portfolio positioning at period end.

At the end of the period, the Fund maintained a somewhat long duration stance while favoring the front end of the yield curve on the view that long end rates could be more vulnerable to any modest increase in growth and inflation. While maintaining a modest allocation to investment grade credit, the Fund favored agency MBS on the view that demand from banks and foreign investors should remain supportive while prepayment speeds will likely be slower than the market expects. The Fund also had meaningful exposure to emerging markets given a supportive policy backdrop and improved growth expectations, favoring local rate exposures and select corporate names within the asset class.

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.

8 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Fund Summary  as of December 31, 2019 (continued) BlackRock Strategic Income Opportunities Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

^(a) 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.

^(b)  Under normal market conditions, the Fund will invest in a combination of fixed income securities, including, but not limited to: high yield securities, international securities, emerging markets debt and mortgages. Depending on market conditions, the Fund may invest in other market sectors. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Strategic Income Opportunities Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

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

(^d)  An unmanaged index that tracks 3-month U.S. Treasury securities.

Performance Summary for the Period Ended December 31, 2019

										Average Annual Total Returns (a)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		2.74	%		2.73	%		2.47	%		7.62	%		N/A			3.02	%		N/A			4.42	%		N/A
Investor A		2.37			2.34			2.33			7.31			3.02	%		2.72			1.89	%		4.13			3.71	%
Investor C		1.73			1.73			1.95			6.54			5.54			1.97			1.97			3.36			3.36
Class K		2.83			2.82			2.52			7.82			N/A			3.11			N/A			4.46			N/A
Bloomberg Barclays U.S. Universal Index		—			—			2.58			9.29			N/A			3.44			N/A			4.12			N/A
ICE BofAML 3-Month U.S. Treasury Bill Index		—			—			1.03			2.28			N/A			1.07			N/A			0.58			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” on page 11 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Strategic Income Opportunities Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

FUND SUMMARY 9

Fund Summary  as of December 31, 2019 (continued) BlackRock Strategic Income Opportunities Portfolio

Expense Example

	Actual								Hypothetical (a)
					Including Interest Expense		Excluding Interest Expense				Including Interest Expense				Excluding Interest Expense
	Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (07/01/19)		Ending Account Value (12/31/19)		Expenses Paid During the Period (b)		Ending Account Value (12/31/19)		Expenses Paid During the Period (c)
Institutional		$      1,000.00	$	1,024.70	$	3.88	$	3.11	$	1,000.00	$	1,021.37	$	3.87	$	1,022.13	$	3.11
Investor A		1,000.00		1,023.30		5.35		4.59		1,000.00		1,019.91		5.35		1,020.67		4.58
Investor C		1,000.00		1,019.50		9.11		8.35		1,000.00		1,016.18		9.10		1,016.94		8.34
Class K		1,000.00		1,025.20		3.42		2.65		1,000.00		1,021.83		3.41		1,022.58		2.65

^(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 (0.76% for Institutional, 1.05% for Investor A, 1.79% for Investor C and 0.67% for Class K), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.61% for Institutional, 0.90% for Investor A, 1.64% for Investor C and 0.52% for Class K), multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 12 for further information on how expenses were calculated.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
U.S. Government Sponsored Agency Securities	42	%
Corporate Bonds	19
Asset-Backed Securities	9
Foreign Government Obligations	8
U.S. Treasury Obligations	5
Non-Agency Mortgage-Backed Securities	5
Investment Companies	3
Municipal Bonds	3
Floating Rate Loan Interests	3
Common Stocks	2
Foreign Agency Obligations	1
Preferred Securities	—	(b)
Warrants	—	(b)

^(a)  Total Investments exclude short-term securities, options purchased, options written, borrowed bonds, TBA sale commitments and investments sold short.

^(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)	52	%
AA/Aa	4
A	7
BBB/Baa	11
BB/Ba	7
B	5
CCC/Caa	1
CC/Ca	1
C	—	(d)
D	—	(d)
NR	12

^(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)  Total Investments exclude short-term securities, options purchased, options written, borrowed bonds, TBA sale commitments and investments sold short.

^(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.

10 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

About Fund Performance

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. BlackRock Strategic Income Opportunities Portfolio’s Class K Shares performance shown prior to the Class K Shares inception date of March 28, 2016 is that of Institutional Shares. The performance of BlackRock Strategic Income Portfolio’s Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares for BlackRock Strategic Income Opportunities Portfolio would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares. On the close of business on September 1, 2015, the BlackRock Emerging Markets Flexible Dynamic Bond Portfolio’s BlackRock Shares were redesignated as Class K Shares. Prior to September 1, 2015, performance is that of the BlackRock Emerging Markets Flexible Dynamic Bond Portfolio’s BlackRock Shares.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.00% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. These shares automatically convert to Investor A Shares after approximately ten years.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend/payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. With respect to each Fund’s voluntary waivers, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waivers may be reduced or discontinued at any time. With respect to each Fund’s contractual waivers, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

ABOUT FUND PERFORMANCE 11

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance returns and NAV. However, there is no guarantee that these objectives can be achieved in all interest rate environments.

The Funds may utilize leverage by entering into reverse repurchase agreements.

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

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

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

The use of leverage also generally causes greater changes in each Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by each Fund’s shareholders and may reduce income.

Disclosure of Expenses

Shareholders of each 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 examples shown on the previous pages (which are based on a hypothetical investment of $1,000 invested on July 1, 2019 and held through December 31, 2019) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. 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 Funds’ 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 a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

12 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Corporate Bonds — 9.5%
Argentina — 0.1%
Tarjeta Naranja SA, (Argentina Deposit Rates Badlar Private Banks ARS 30 to 35 Days + 3.50%), 15.88%, 04/11/22(a)(b)	USD		580	$	116,076
Brazil — 3.5%
Petrobras Global Finance BV, 6.85%, 06/05/2115			3,411		3,905,595
Kazakhstan — 5.0%
Development Bank of Kazakhstan JSC:
9.50%, 12/14/20	KZT		203,000		518,944
8.95%, 05/04/23(a)			258,500		635,015
Kazakhstan Temir Zholy Finance BV, 6.95%, 07/10/42	USD		630		844,200
KazMunayGas National Co. JSC:
5.75%, 04/19/47(a)			2,163		2,584,785
6.38%, 10/24/48			718		928,953
					5,511,897
Supranational — 0.8%
European Bank for Reconstruction & Development, 16.95%, 04/03/20	UAH		12,800		537,340
International Finance Corp., 15.75%, 05/13/20(c)			9,700		407,385
					944,725
Ukraine — 0.1%
State Savings Bank of Ukraine, 9.38%, 03/10/23(d)	USD		70		73,784
Total Corporate Bonds — 9.5% (Cost: $9,182,776)					10,552,077
Foreign Agency Obligations — 4.1%
Indonesia — 0.8%
Jasa Marga Persero Tbk. PT, 7.50%, 12/11/20(a)	IDR		3,000,000		210,313
Pertamina Persero PT, 6.45%, 05/30/44	USD		248		319,300
Wijaya Karya Persero Tbk. PT, 7.70%, 01/31/21(a)	IDR		5,420,000		369,817
					899,430
Mexico — 2.2%
Petroleos Mexicanos:
6.75%, 09/21/47	USD		234		236,048
7.69%, 01/23/50(a)			2,026		2,219,908
					2,455,956
Ukraine — 0.1%
Ukreximbank Via Biz Finance plc, 9.63%, 04/27/22			163		170,625
Venezuela — 1.0%
Petroleos de Venezuela SA(e)(f):
8.50%, 10/27/20(a)			1,741		313,290
9.75%, 05/17/35			10,106		783,222
					1,096,512
Total Foreign Agency Obligations — 4.1% (Cost: $7,904,002)					4,622,523

Security		Par (000)		Value
Foreign Government Obligations — 73.2%
Angola — 0.9%
Republic of Angola:
9.50%, 11/12/25	USD		413	$	482,565
8.25%, 05/09/28			508		547,687
					1,030,252
Argentina — 7.0%
Province of Salta Argentina, 9.13%, 07/07/24(a)			294		176,859
Provincia de Buenos Aires: 10.88%, 01/26/21			133		82,667
(Argentina Deposit Rates Badlar Private Banks ARS 30 to 35 Days + 3.83%), 48.71%, 05/31/22(b)	ARS		3,927		20,313
6.50%, 02/15/23	USD		228		92,779
9.13%, 03/16/24(a)			668		291,715
(Argentina Deposit Rates Badlar Private Banks ARS 30 to 35 Days + 3.75%), 44.06%, 04/12/25(a)(b)	ARS		14,851		107,702
9.63%, 04/18/28	USD		127		53,570
Republic of Argentina:
5.63%, 01/26/22			3,487		1,812,150
5.88%, 01/11/28			144		67,635
8.28%, 12/31/33			2,325		1,404,654
7.63%, 04/22/46			3,525		1,763,602
6.25%, 11/09/47	EUR		1,786		901,510
6.88%, 01/11/48	USD		825		394,969
7.13%, 06/28/2117			1,119		559,500
					7,729,625
Benin — 0.9%
Republic of Benin, 5.75%, 03/26/26(a)	EUR		876		1,021,914
Brazil — 1.2%
Federative Republic of Brazil:
10.00%, 01/01/25	BRL		4		1,027,305
10.00%, 01/01/27			1		265,871
					1,293,176
Costa Rica — 1.7%
Republic of Costa Rica:
4.25%, 01/26/23	USD		200		201,687
5.63%, 04/30/43			500		464,688
7.00%, 04/04/44			300		316,313
7.16%, 03/12/45(a)			595		633,489
7.16%, 03/12/45			300		319,406
					1,935,583
Dominican Republic — 0.9%
Dominican Republic:
6.00%, 07/19/28			200		222,813
6.40%, 06/05/49			704		772,640
					995,453
Egypt — 7.8%
Arab Republic of Egypt:
14.95%, 03/20/21	EGP		11,146		696,367
14.85%, 04/10/23			12,015		773,379
16.10%, 05/07/29			29,260		2,044,784
6.38%, 04/11/31(a)	EUR		1,262		1,512,907
8.50%, 01/31/47(a)	USD		575		638,430
7.90%, 02/21/48			2,808		2,941,380
					8,607,247
El Salvador — 0.4%
Republic of EI Salvador:
6.38%, 01/18/27			216		230,243

SCHEDULES OF INVESTMENTS 13

Schedule of Investments (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
El Salvador (continued)
7.65%, 06/15/35	USD		200	$	227,687
					457,930
Gabon — 4.4%
Gabonese Republic:
6.38%, 12/12/24			1,162		1,214,970
6.95%, 06/16/25			3,525		3,710,062
					4,925,032
Ghana — 0.6%
Republic of Ghana:
16.50%, 02/17/20	GHS		920		162,745
8.95%, 03/26/51	USD		501		512,742
					675,487
Hungary — 7.9%
Republic of Hungary:
1.00%, 09/23/20	HUF		643,420		2,195,996
7.50%, 11/12/20			46,150		166,410
0.50%, 04/21/21			645,880		2,201,503
3.00%, 10/27/27			270,300		1,007,448
6.75%, 10/22/28			183,220		869,643
3.00%, 08/21/30			614,340		2,269,207
					8,710,207
Indonesia — 0.7%
Republic of Indonesia:
8.25%, 05/15/29	IDR		3,482,000		272,641
8.38%, 04/15/39			3,531,000		273,107
5.35%, 02/11/49	USD		200		257,687
					803,435
Ivory Coast — 3.6%
Republic of Cote d’lvoire:
6.88%, 10/17/40(a)	EUR		1,900		2,229,799
6.63%, 03/22/48			1,598		1,803,680
					4,033,479
Kenya — 1.0%
Republic of Kenya, 8.25%, 02/28/48(a)	USD		1,006		1,077,992
Lebanon — 0.9%
Republic of Lebanese:
5.80%, 04/14/20			562		457,327
6.60%, 11/27/26			564		251,333
6.65%, 11/03/28			313		139,872
6.85%, 05/25/29			316		140,521
					989,053
Mexico — 2.6%
United Mexican States:
2.88%, 04/08/39	EUR		386		493,728
8.00%, 11/07/47	MXN		143		823,741
5.75%, 10/12/2110	USD		458		541,585
4.00%, 03/15/2115	EUR		835		1,053,405
					2,912,459
Mozambique — 0.4%
Republic of Mozambique, 5.00%, 09/15/31(a)(d)	USD		474		442,598
Nigeria — 5.9%
Federal Republic of Nigeria:
14.50%, 07/15/21	NGN		295,350		888,076
12.75%, 04/27/23			228,338		609,901
16.29%, 03/17/27			183,586		624,355
6.50%, 11/28/27	USD		229		233,938
13.98%, 02/23/28	NGN		170,997		527,357

Security		Par (000)		Value
Nigeria (continued)
7.88%, 02/16/32(a)	USD		866	$	897,663
7.88%, 02/16/32			1,036		1,073,879
7.63%, 11/28/47(a)			1,173		1,142,942
9.25%, 01/21/49			452		504,262
					6,502,373
Poland — 1.0%
Republic of Poland, 2.00%, 04/25/21	PLN		4,227		1,122,836
Qatar — 0.5%
State of Qatar:
5.10%, 04/23/48	USD		200		257,000
4.82%, 03/14/49(a)			200		247,375
					504,375
Romania — 3.1%
Republic of Romania, 4.63%, 04/03/49(a)	EUR		2,505		3,466,663
Russia — 3.0%
Russian Federation:
8.50%, 09/17/31	RUB		59,569		1,131,850
7.70%, 03/23/33			58,085		1,043,759
7.25%, 05/10/34			66,837		1,158,589
					3,334,198
Saudi Arabia — 1.1%
Kingdom of Saudi Arabia:
5.00%, 04/17/49	USD		260		310,212
5.25%, 01/16/50(a)			722		898,439
					1,208,651
Senegal — 1.4%
Republic of Senegal:
4.75%, 03/13/28(a)	EUR		453		536,236
6.75%, 03/13/48	USD		445		448,477
6.75%, 03/13/48(a)			552		556,312
					1,541,025
Serbia — 0.5%
Republic of Serbia, 1.50%, 06/26/29(a)	EUR		458		523,371
South Africa — 2.0%
Republic of South Africa:
4.30%, 10/12/28	USD		231		226,068
5.00%, 10/12/46			400		367,375
8.75%, 02/28/48	ZAR		25,786		1,612,075
					2,205,518
Turkey — 3.1%
Republic of Turkey:
7.25%, 12/23/23	USD		447		482,900
4.63%, 03/31/25	EUR		2,476		2,933,554
					3,416,454
Ukraine — 7.7%
Republic of Ukraine:
7.75%, 09/01/20	USD		319		327,772
16.00%, 05/24/23(a)	UAH		14,851		682,151
7.75%, 09/01/24	USD		1,400		1,523,900
7.75%, 09/01/25			216		235,332
6.75%, 06/20/26	EUR		620		779,778
7.75%, 09/01/26	USD		200		218,000
7.75%, 09/01/27			628		686,090
9.75%, 11/01/28(a)			1,343		1,633,424
7.38%, 09/25/32(a)			1,557		1,660,638
0.00%, 05/31/40(g)			782		743,633
					8,490,718

14 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments   (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Uruguay — 0.8%
Oriental Republic of Uruguay:
9.88%, 06/20/22(a)	UYU		26,000	$	684,997
8.50%, 03/15/28			11,143		256,010
					941,007
Venezuela — 0.2%
Bolivarian Republic of Venezuela(e)(f):
11.75%, 10/21/26	USD		335		38,537
9.25%, 09/15/27			330		37,950
9.25%, 05/07/28			95		10,936
11.95%, 08/05/31			1,328		152,697
					240,120
Total Foreign Government Obligations — 73.2% (Cost: $78,122,273)					81,138,231
Total Long-Term Investments — 86.8% (Cost: $95,209,051)					96,312,831
Short-Term Securities — 11.9%
Foreign Government Obligations — 1.3%(h)
Egypt — 1.3%
Arab Republic of Egypt Treasury Bills, 15.94%, 04/07/20	EGP		23,675		1,417,653
Total Foreign Government Obligations — 1.3% (Cost: $1,396,752)					1,417,653
Time Deposits — 10.6%
Australia — 0.0%
Brown Brothers Harriman & Co., 0.32%, 01/02/20	AUD		1		579

Security		Par (000)		Value
Canada — 0.0%
Brown Brothers Harriman & Co., 0.82%, 01/02/20	CAD		2	$	1,155
Europe — 0.1%
Citibank NA, (0.68)%, 01/02/20	EUR		105		118,011
Norway — 0.0%
Brown Brothers Harriman & Co., 0.66%, 01/02/20	NOK		25		2,815
South Africa — 0.0%
Brown Brothers Harriman & Co., 0.00%, 01/02/20	ZAR		4		304
Sweden — 0.0%
Brown Brothers Harriman & Co., (7.75)%, 01/02/20	SEK		—(i)		13
Switzerland — 0.0%
Brown Brothers Harriman & Co., (1.70)%, 01/03/20	CHF		5		4,986
United Kingdom — 0.1%
Citibank NA, 0.36%, 01/02/20	GBP		22		29,306
United States — 10.4%
ANZ Banking Group Ltd., 2.31%, 01/02/20	USD		11,562		11,562,305
Total Time Deposits — 10.6% (Cost: $11,719,474)					11,719,474
Total Short-Term Securities — 11.9% (Cost: $13,116,226)					13,137,127
Total Investments — 98.7% (Cost: $108,325,277)					109,449,958
Other Assets Less Liabilities — 1.3%					1,435,485
Net Assets — 100.0%				$	110,885,443

^(a)  Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration to qualified institutional investors.

^(b)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(c)  Security is valued using significant unobservable inputs and is classified as Level 3 in the fair value hierarchy.

^(d)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(e)  Issuer filed for bankruptcy and/or is in default.

^(f) Non-income producing security.

^(g) Variable rate security. Rate shown is the rate in effect as of period end.

^(h)  Rates are discount rates or a range of discount rates as of period end.

⁽ⁱ⁾ Amount is less than 500.

During the year ended December 31, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliated Persons and/or Related Parties	Shares Held at 12/31/18		Shares Purchased		Shares Sold			Shares Held at 12/31/19		Value at 12/31/19		Income		Net   Realized   Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
iShares J.P. Morgan EM Local Currency Bond ETF(b)		44,882		—		(44,882	)		—	$	—	$	—	$	107,691	$	(35,457	)

^(a)  Includes net capital gain distributions, if applicable.

^(b)  As of period end, the entity is no longer held by the Fund.

SCHEDULES OF INVESTMENTS 15

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts	Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-Buxl	1		03/06/20	$	223	$	(5,011	)
Short Contracts
Euro-BTP	40		03/06/20		6,392		17,784
Euro-Bund	30		03/06/20		5,737		18,146
							35,930
						$	30,919

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
AUD	4,716,525	USD	3,277,491	Bank of America NA		01/10/20	$	32,918
AUD	754,093	USD	514,105	Bank of New York		01/10/20		15,174
AUD	5,129,839	USD	3,540,949	BNP Paribas SA		01/10/20		59,557
BRL	15,738,031	USD	3,815,548	Bank of America NA		01/10/20		95,589
BRL	8,049,531	USD	1,987,784	BNP Paribas SA		01/10/20		12,646
BRL	4,934,947	USD	1,198,938	Citibank NA		01/10/20		27,471
BRL	697,785	USD	171,577	Goldman Sachs International		01/10/20		1,833
BRL	8,539,129	USD	2,082,207	JPMorgan Chase Bank NA		01/10/20		39,896
BRL	4,274,202	USD	1,026,096	Natwest Markets plc		01/10/20		36,108
CAD	391,099	USD	297,272	Morgan Stanley & Co. International plc		01/10/20		3,924
CHF	394,612	USD	401,612	Barclays Bank plc		01/10/20		6,334
CHF	226,483	USD	229,466	BNP Paribas SA		01/10/20		4,670
CHF	254,479	USD	259,814	Goldman Sachs International		01/10/20		3,263
CHF	3,915,826	USD	3,984,574	JPMorgan Chase Bank NA		01/10/20		63,566
CHF	2,664,697	USD	2,711,757	Morgan Stanley & Co. International plc		01/10/20		42,978
CLP	2,857,802,645	USD	3,661,033	BNP Paribas SA		01/10/20		140,021
CLP	665,804,647	USD	859,246	Citibank NA		01/10/20		26,315
CNY	46,765,892	USD	6,647,164	BNP Paribas SA		01/10/20		70,384
CNY	154,595	USD	22,092	Goldman Sachs International		01/10/20		114
CNY	54,412,370	USD	7,738,443	Standard Chartered Bank		01/10/20		77,462
COP	4,534,814,425	USD	1,337,332	Bank of America NA		01/10/20		41,744
COP	74,860,044	USD	21,783	Barclays Bank plc		01/10/20		982
COP	3,532,384,022	USD	1,028,950	JPMorgan Chase Bank NA		01/10/20		45,278
COP	3,524,967,128	USD	1,025,893	UBS AG		01/10/20		46,081
CZK	530,000	USD	23,078	Toronto Dominion Bank		01/10/20		302
EUR	7,114,512	USD	7,919,379	Bank of America NA		01/10/20		64,456
EUR	18,725,370	USD	20,891,437	BNP Paribas SA		01/10/20		121,987
EUR	1,022,613	USD	1,138,539	Deutsche Bank AG		01/10/20		9,027
EUR	1,339,716	USD	1,500,425	Goldman Sachs International		01/10/20		2,990
EUR	302,971	USD	336,237	JPMorgan Chase Bank NA		01/10/20		3,754
EUR	5,954,828	USD	6,633,876	Morgan Stanley & Co. International plc		01/10/20		48,573
GBP	193,941	USD	255,089	Bank of New York		01/10/20		1,858
GBP	1,960,076	USD	2,577,769	Barclays Bank plc		01/10/20		19,076
GBP	215,712	USD	282,895	BNP Paribas SA		01/10/20		2,896
GBP	1,373,740	USD	1,802,349	Deutsche Bank AG		01/10/20		17,677
GBP	440,126	USD	569,806	HSBC Bank plc		01/10/20		13,303
GBP	158,783	USD	209,737	JPMorgan Chase Bank NA		01/10/20		630
HUF	766,323,249	USD	2,594,671	Barclays Bank plc		01/10/20		3,400
HUF	1,217,483,373	USD	4,075,410	BNP Paribas SA		01/10/20		52,230
HUF	1,029,682,129	USD	3,464,121	Citibank NA		01/10/20		26,817
HUF	616,950,054	USD	2,072,737	Deutsche Bank AG		01/10/20		18,913
HUF	603,038,147	USD	2,037,291	Goldman Sachs International		01/10/20		7,193
HUF	312,885,856	USD	1,052,874	JPMorgan Chase Bank NA		01/10/20		7,905
HUF	6,510,000	USD	21,856	State Street Bank and Trust Co.		01/10/20		215

16 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
IDR	33,514,125,948	USD	2,411,630	Deutsche Bank AG		01/10/20	$	10,961
IDR	70,318,864,513	USD	5,007,753	Standard Chartered Bank		01/10/20		75,294
INR	42,512,762	USD	595,117	Deutsche Bank AG		01/10/20		1,512
JPY	14,346,354	USD	131,194	JPMorgan Chase Bank NA		01/10/20		896
KRW	64,426,840	USD	55,456	Bank of America NA		01/10/20		322
KRW	2,425,290,741	USD	2,058,968	BNP Paribas SA		01/10/20		40,759
MXN	26,055,431	USD	1,375,632	Bank of America NA		01/10/20		1,127
MXN	2,764,587	USD	142,239	Barclays Bank plc		01/10/20		3,841
MXN	13,079,413	USD	690,425	Citibank NA		01/10/20		686
MXN	28,514,640	USD	1,487,407	Deutsche Bank AG		01/10/20		19,295
MXN	139,809,782	USD	7,331,266	Goldman Sachs International		01/10/20		56,228
MXN	1,170,000	USD	60,539	HSBC Bank plc		01/10/20		1,282
MXN	49,560,872	USD	2,594,987	Morgan Stanley & Co. International plc		01/10/20		23,790
MXN	800,000	USD	42,220	UBS AG		01/10/20		52
MYR	5,265,541	USD	1,268,959	Goldman Sachs International		01/10/20		17,925
NZD	4,320,708	USD	2,894,485	Toronto Dominion Bank		01/10/20		14,474
PEN	135,902	USD	40,197	Barclays Bank plc		01/10/20		814
PHP	68,496,392	USD	1,346,658	BNP Paribas SA		01/10/20		4,116
PHP	26,163,990	USD	515,648	Deutsche Bank AG		01/10/20		315
PLN	1,998,510	USD	522,937	Bank of America NA		01/10/20		3,833
PLN	18,854,390	USD	4,924,540	BNP Paribas SA		01/10/20		45,132
PLN	1,022,366	USD	267,960	Citibank NA		01/10/20		1,517
PLN	198,870	USD	51,606	Goldman Sachs International		01/10/20		812
PLN	13,859,770	USD	3,600,562	State Street Bank and Trust Co.		01/10/20		52,619
PLN	1,986,879	USD	516,701	UBS AG		01/10/20		7,004
RUB	474,202,925	USD	7,465,858	Bank of America NA		01/10/20		167,955
RUB	99,086,390	USD	1,549,072	Goldman Sachs International		01/10/20		46,040
THB	23,376,043	USD	774,639	HSBC Bank plc		01/10/20		5,909
THB	15,701,450	USD	523,312	JPMorgan Chase Bank NA		01/10/20		974
THB	7,780,873	USD	257,372	Natwest Markets plc		01/10/20		2,439
TRY	1,022,837	USD	171,548	Natwest Markets plc		01/10/20		56
TWD	1,837,239	USD	61,133	Bank of America NA		01/10/20		317
USD	558,831	AUD	795,026	Bank of America NA		01/10/20		822
USD	140,458	CHF	135,489	JPMorgan Chase Bank NA		01/10/20		391
USD	1,826,091	GBP	1,367,357	Bank of America NA		01/10/20		14,521
USD	343,204	GBP	256,939	Goldman Sachs International		01/10/20		2,793
USD	563,008	GBP	424,117	State Street Bank and Trust Co.		01/10/20		1,109
USD	598,716	INR	42,508,633	JPMorgan Chase Bank NA		01/10/20		2,145
USD	2,553,578	JPY	277,279,675	Deutsche Bank AG		01/10/20		591
USD	300,559	KRW	346,920,322	Deutsche Bank AG		01/10/20		208
USD	51,419	MXN	971,433	HSBC Bank plc		01/10/20		89
USD	145,889	PHP	7,396,582	Deutsche Bank AG		01/10/20		26
USD	8,386,482	RUB	519,794,163	JPMorgan Chase Bank NA		01/10/20		18,732
USD	1,454,663	TRY	8,502,118	Bank of America NA		01/10/20		28,234
USD	1,556,761	TRY	9,124,801	HSBC Bank plc		01/10/20		25,862
USD	3,230,948	TRY	18,891,208	Morgan Stanley & Co. International plc		01/10/20		61,505
USD	1,060,705	TRY	6,201,487	Natwest Markets plc		01/10/20		20,261
ZAR	84,854,049	USD	5,858,179	Bank of America NA		01/10/20		194,865
ZAR	44,539,131	USD	3,135,497	Goldman Sachs International		01/10/20		41,691
ZAR	7,595,461	USD	522,797	JPMorgan Chase Bank NA		01/10/20		19,023
ZAR	18,979,566	USD	1,290,083	Morgan Stanley & Co. International plc		01/10/20		63,820
ZAR	15,487,231	USD	1,084,154	Natwest Markets plc		01/10/20		20,624
ZAR	6,559,915	USD	467,660	State Street Bank and Trust Co.		01/10/20		290
ZAR	330,000	USD	22,242	UBS AG		01/10/20		1,299
ZAR	490,000	USD	34,770	Westpac Banking Corp.		01/10/20		184
RUB	43,512,320	USD	697,760	JPMorgan Chase Bank NA		02/03/20		534
USD	1,393,919	RUB	86,643,187	JPMorgan Chase Bank NA		02/03/20		3,452
KZT	1,897,426,011	USD	4,815,802	Citibank NA		02/04/20		110,458
KZT	162,406,316	USD	417,229	Standard Chartered Bank		02/04/20		4,424
UAH	10,609,243	USD	432,854	Standard Chartered Bank		02/04/20		9,938
UAH	18,799,705	USD	727,261	Goldman Sachs International		03/19/20		47,753
								2,621,450

SCHEDULES OF INVESTMENTS 17

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
EUR	198,535	USD	223,166	Deutsche Bank AG		01/10/20	$	(372)
GBP	1,364,913	USD	1,840,012	Deutsche Bank AG		01/10/20		(31,680)
HUF	754,432,170	USD	2,570,643	Goldman Sachs International		01/10/20		(12,887)
INR	5,441,142	USD	76,450	Barclays Bank plc		01/10/20		(88)
INR	36,755,336	USD	516,263	Deutsche Bank AG		01/10/20		(435)
JPY	276,351,751	USD	2,554,631	Bank of America NA		01/10/20		(10,188)
JPY	44,856,188	USD	413,574	Bank of New York		01/10/20		(571)
JPY	111,575,729	USD	1,029,643	HSBC Bank plc		01/10/20		(2,336)
JPY	527,313,252	USD	4,868,498	JPMorgan Chase Bank NA		01/10/20		(13,385)
MXN	10,734,533	USD	570,303	Bank of America NA		01/10/20		(3,095)
MXN	19,677,076	USD	1,044,458	Deutsche Bank AG		01/10/20		(4,730)
MXN	27,978,285	USD	1,486,328	Natwest Markets plc		01/10/20		(7,967)
MYR	328,993	USD	80,734	Goldman Sachs International		01/10/20		(330)
PHP	14,713,228	USD	290,689	BNP Paribas SA		01/10/20		(539)
PLN	632,580	USD	167,058	Citibank NA		01/10/20		(322)
RUB	123,718,855	USD	2,002,895	Credit Suisse International		01/10/20		(11,245)
RUB	86,643,187	USD	1,397,922	JPMorgan Chase Bank NA		01/10/20		(3,122)
THB	1,468,620	USD	49,410	Standard Chartered Bank		01/10/20		(372)
TRY	9,068,054	USD	1,551,689	Bank of America NA		01/10/20		(30,311)
TRY	2,045,082	USD	343,132	BNP Paribas SA		01/10/20		(21)
TRY	6,253,927	USD	1,049,739	Citibank NA		01/10/20		(497)
TRY	7,133,644	USD	1,196,910	Deutsche Bank AG		01/10/20		(74)
TRY	7,685,000	USD	1,290,686	HSBC Bank plc		01/10/20		(1,347)
TRY	16,791,150	USD	2,893,866	Morgan Stanley & Co. International plc		01/10/20		(76,757)
TRY	1,524,808	USD	257,784	Natwest Markets plc		01/10/20		(1,962)
TRY	7,688,613	USD	1,293,432	Toronto Dominion Bank		01/10/20		(3,487)
USD	939,631	AUD	1,370,873	Bank of America NA		01/10/20		(22,551)
USD	518,029	AUD	757,079	Bank of New York		01/10/20		(13,346)
USD	58,347	AUD	85,187	Goldman Sachs International		01/10/20		(1,443)
USD	2,548,610	AUD	3,726,828	HSBC Bank plc		01/10/20		(67,157)
USD	2,821,543	AUD	4,118,568	Morgan Stanley & Co. International plc		01/10/20		(69,177)
USD	371,998	AUD	542,746	UBS AG		01/10/20		(8,942)
USD	4,726,079	BRL	19,439,292	Bank of America NA		01/10/20		(104,879)
USD	3,038,004	BRL	12,418,337	Barclays Bank plc		01/10/20		(48,140)
USD	207,418	BRL	855,535	Citibank NA		01/10/20		(5,196)
USD	39,376	CAD	51,864	Morgan Stanley & Co. International plc		01/10/20		(566)
USD	2,536,406	CHF	2,508,455	Goldman Sachs International		01/10/20		(56,808)
USD	2,702,520	CHF	2,655,145	HSBC Bank plc		01/10/20		(42,341)
USD	2,072,320	CHF	2,042,831	Morgan Stanley & Co. International plc		01/10/20		(39,537)
USD	2,869,654	CHF	2,813,595	UBS AG		01/10/20		(39,011)
USD	1,909,604	CLP	1,457,861,685	Citibank NA		01/10/20		(29,441)
USD	2,064,179	CLP	1,586,260,722	Deutsche Bank AG		01/10/20		(45,645)
USD	523,154	CLP	398,172,618	Goldman Sachs International		01/10/20		(6,440)
USD	3,698,103	CLP	2,839,080,515	JPMorgan Chase Bank NA		01/10/20		(78,048)
USD	520,746	CLP	398,172,618	Natwest Markets plc		01/10/20		(8,848)
USD	9,266,880	CNY	65,196,808	BNP Paribas SA		01/10/20		(98,123)
USD	2,587,660	CNY	18,111,029	Morgan Stanley & Co. International plc		01/10/20		(13,846)
USD	2,585,272	CNY	18,117,084	Standard Chartered Bank		01/10/20		(17,103)
USD	3,250,704	COP	10,957,461,096	Citibank NA		01/10/20		(81,553)
USD	523,717	COP	1,742,088,573	Goldman Sachs International		01/10/20		(6,066)
USD	207,531	COP	706,642,714	UBS AG		01/10/20		(7,365)
USD	5,298,257	EUR	4,754,063	Bank of America NA		01/10/20		(36,705)
USD	15,320,139	EUR	13,771,393	BNP Paribas SA		01/10/20		(133,980)
USD	567,876	EUR	511,522	Citibank NA		01/10/20		(6,148)
USD	122,821	EUR	110,000	HSBC Bank pc		01/10/20		(619)
USD	27,098,315	EUR	24,354,862	Morgan Stanley & Co. International plc		01/10/20		(232,467)
USD	55,520	EUR	50,000	Natwest Markets plc		01/10/20		(591)
USD	5,290,367	EUR	4,742,674	Toronto Dominion Bank		01/10/20		(31,814)
USD	1,122,895	GBP	848,316	BNP Paribas SA		01/10/20		(1,013)
USD	2,061,299	GBP	1,560,166	Deutsche Bank AG		01/10/20		(5,718)
USD	1,041,012	HUF	307,291,095	Bank of America NA		01/10/20		(799)
USD	2,343,530	HUF	692,150,000	Barclays Bank plc		01/10/20		(3,070)
USD	5,417,080	HUF	1,606,370,795	BNP Paribas SA		01/10/20		(29,008)

18 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	15,319,767	HUF	4,553,679,089	Citibank NA		01/10/20	$	(118,597)
USD	2,519,072	HUF	745,418,522	Goldman Sachs International		01/10/20		(8,125)
USD	132,855	IDR	1,861,376,842	BNP Paribas SA		01/10/20		(1,696)
USD	2,932,023	IDR	41,077,485,226	Deutsche Bank AG		01/10/20		(37,290)
USD	184,020	INR	13,124,092	Barclays Bank plc		01/10/20		(165)
USD	2,909,409	INR	207,836,571	Deutsche Bank AG		01/10/20		(7,390)
USD	4,649,599	KRW	5,518,423,479	Standard Chartered Bank		01/10/20		(128,050)
USD	2,070,469	KRW	2,415,136,062	UBS AG		01/10/20		(20,468)
USD	1,801,064	MXN	34,207,617	Bank of America NA		01/10/20		(6,452)
USD	1,535,673	MXN	29,847,656	Barclays Bank plc		01/10/20		(41,465)
USD	511,141	MXN	9,914,567	Deutsche Bank AG		01/10/20		(12,741)
USD	6,262,152	MXN	119,190,162	Goldman Sachs International		01/10/20		(35,808)
USD	263,782	MXN	5,002,524	Natwest Markets plc		01/10/20		(549)
USD	109,607	MXN	2,096,908	Toronto Dominion Bank		01/10/20		(1,192)
USD	1,531,333	MXN	29,273,309	UBS AG		01/10/20		(15,458)
USD	2,511,550	NZD	3,830,318	Goldman Sachs International		01/10/20		(67,249)
USD	322,409	NZD	490,391	Morgan Stanley & Co. International plc		01/10/20		(7,752)
USD	40,568	PEN	135,902	Deutsche Bank AG		01/10/20		(444)
USD	4,225,008	PHP	214,967,132	BNP Paribas SA		01/10/20		(14,223)
USD	2,063,029	PLN	7,946,685	BNP Paribas SA		01/10/20		(31,572)
USD	2,032,616	PLN	7,852,223	Credit Suisse International		01/10/20		(37,086)
USD	1,367,713	PLN	5,246,275	Deutsche Bank AG		01/10/20		(15,109)
USD	2,753,350	PLN	10,582,102	Goldman Sachs International		01/10/20		(35,899)
USD	210,643	PLN	807,788	JPMorgan Chase Bank NA		01/10/20		(2,275)
USD	1,353,842	RUB	86,643,187	Bank of America NA		01/10/20		(40,957)
USD	87,142	RUB	5,450,431	Deutsche Bank AG		01/10/20		(600)
USD	1,021,548	RUB	64,094,550	Goldman Sachs International		01/10/20		(10,259)
USD	1,717,346	RUB	107,669,026	JPMorgan Chase Bank NA		01/10/20		(15,931)
USD	771,595	THB	23,325,303	Morgan Stanley & Co. International plc		01/10/20		(7,259)
USD	2,105,113	TWD	64,058,587	JPMorgan Chase Bank NA		01/10/20		(37,458)
USD	149,643	TWD	4,476,261	Standard Chartered Bank		01/10/20		(75)
USD	1,316,507	ZAR	18,887,659	Bank of America NA		01/10/20		(30,840)
USD	522,119	ZAR	7,695,038	BNP Paribas SA		01/10/20		(26,805)
USD	1,036,331	ZAR	15,124,001	Goldman Sachs International		01/10/20		(42,536)
USD	2,613,217	ZAR	38,445,265	Morgan Stanley & Co. International plc		01/10/20		(129,267)
USD	66,774	ZAR	964,559	Natwest Markets plc		01/10/20		(2,033)
USD	1,765,036	ZAR	25,932,788	Toronto Dominion Bank		01/10/20		(84,874)
ZAR	14,638,279	USD	1,047,230	Bank of America NA		01/10/20		(3,011)
RUB	519,794,163	USD	8,362,466	JPMorgan Chase Bank NA		02/03/20		(20,708)
								(2,711,292)
Net Unrealized Depreciation							$	(89,842)

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.HY.32.V3		5.00	%		Quarterly		06/20/24		USD	19,373	$	(1,947,076)	$	(1,351,510)	$	(595,566)
ITRAXX.EUR.CROSSOVER.31.V2		5.00	%		Quarterly		06/20/24		EUR	6,273		(838,402)		(723,517)		(114,885)
CDX.NA.HY.33.V2		5.00	%		Quarterly		12/20/24		USD	11,120		(1,089,778)		(629,506)		(460,272)
											$	(3,875,256)	$	(2,704,533)	$	(1,170,723)

SCHEDULES OF INVESTMENTS 19

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
28 day MXIBTIIE	Monthly	8.96%	Monthly		12/11/28		MXN	29,700	$	238,832		$	—		$	238,832
3 month JIBAR	Quarterly	8.22%	Quarterly		12/21/28		ZAR	10,800		34,146			—			34,146
3 month JIBAR	Quarterly	8.20%	Quarterly		01/02/29		ZAR	5,200		17,028			—			17,028
28 day MXIBTIIE	Monthly	7.78%	Monthly		05/29/29		MXN	30,170		113,462			—			113,462
28 day MXIBTIIE	Monthly	7.57%	Monthly		06/08/29		MXN	29,523		87,677			—			87,677
28 day MXIBTIIE	Monthly	7.49%	Monthly		06/20/29		MXN	28,944		76,615			—			76,615
3 month JIBAR	Quarterly	7.70%	Quarterly		07/02/29		ZAR	21,309		11,880			—			11,880
3 month JIBAR	Quarterly	7.44%	Quarterly		09/05/29		ZAR	46,969		(46,516	)		—			(46,516	)
(0.04)%	Annual	6 month EURIBOR	Semi-Annual		09/17/29		EUR	891		19,514			—			19,514
28 day MXIBTIIE	Monthly	6.72%	Monthly		10/01/29		MXN	18,134		(6,768	)		—			(6,768	)
6 month BUBOR	Semi-Annual	1.10%	Annual		10/08/29		HUF	339,364		(43,675	)		—			(43,675	)
6 month EURIBOR	Semi-Annual	0.02%	Annual		10/18/29		EUR	739		(12,039	)		(5,041	)		(6,998	)
0.38%	Annual	6 month EURIBOR	Semi-Annual		09/17/49		EUR	619		44,895			—			44,895
0.50%	Annua	6 month EURIBOR	Semi-Annual		11/20/49		EUR	413		14,549			—			14,549
0.51%	Annual	6 month EURIBOR	Semi-Annual		12/04/49		EUR	780		26,605			—			26,605
0.52%	Annual	6 month EURIBOR	Semi-Annual		12/09/49		EUR	817		24,890			—			24,890
									$	601,095		$	(5,041)		$	606,136

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Republic of Chile		1.00	%		Quarterly	Citibank NA		12/20/24		USD	1,245	$	(34,828)		$	(33,793)	$	(1,035)
Republic of Chile		1.00	%		Quarterly	JPMorgan Chase Bank NA		12/20/24		USD	865		(24,218)			(23,079)		(1,139)
Republic of Colombia		1.00	%		Quarterly	JPMorgan Chase Bank NA		12/20/24		USD	4,995		(66,489)			(21,236)		(45,253)
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		12/20/24		USD	14,155		(149,525)			87,929		(237,454)
												$	(275,060	)	$	9,821	$	(284,881)

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency		Counterparty	Termination Date		Credit Rating  (a)	Notional   Amount   (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Republic of Argentina		5.00	%		Quarterly	Citibank NA		12/20/24	CC		USD	5,289	$	(2,894,341	)	$	(2,957,316	)	$	62,975

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

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

OTC Interest Rate Swaps

Paid by the Fund

Received by the Fund

Counterparty

Termination Date

Notional Amount (000)

Value

Upfront Premium Paid (Received)

Unrealized Appreciation (Depreciation)

Rate

Frequency

Rate

Frequency

1 day BZDIOVER

At Termination

5.53%

At Termination

Deutsche BankAG

01/02/23

BRL

6,198

$

(6,686)

$

—

$

(6,686

)

1 day BZDIOVER

At Termination

5.90%

At Termination

JPMorgan Chase Bank NA

01/02/23

BRL

16,664

28,899

—

28,899

20 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

OTC Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund			Counterparty
Rate	Frequency	Rate		Frequency		Termination Date		Notional Amount (000)			Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
1 day BZDIOVER	At Termination		7.08%	At Termination	Citibank NA		01/02/23		BRL	5,900	$	71,229	$	—	$	71,229
1 day BZDIOVER	At Termination		7.28%	At Termination	BNP Paribas SA		01/02/23		BRL	11,125		154,142		—		154,142
1 day BZDIOVER	At Termination		8.48%	At Termination	Bank of America NA		01/02/23		BRL	6,803		190,954		—		190,954
1 day BZDIOVER	At Termination		7.39%	At Termination	Bank of America NA		01/04/27		BRL	2,700		45,443		—		45,443
1 day BZDIOVER	At Termination		8.25%	At Termination	JPMorgan Chase Bank NA		01/04/27		BRL	2,700		92,018		—		92,018
											$	575,999	$	—	$	575,999

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate		0.02	%
28 day MXIBTIIE	Mexico Interbank THE 28-Day		7.55	%
3 month JIBAR	Johannesburg Interbank Average Rate		7.30	%
6 month BUBOR	Budapest Interbank Offered Rate		0.21	%
6 month EURIBOR	Euro Interbank Offered Rate		(0.32	%)

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps and OTC Swaps

	Swap Premiums Paid		Swap Premiums Received		Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps (a)	$	—	$	(2,709,574)	$	710,093	$	(1,274,680)
OTC Swaps		87,929		(3,035,424)		645,660		(291,567)

^(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 Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Statements 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)	$	—	$	—	$	—	$	—	$	35,930	$	—	$	35,930
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		2,621,450		—		—		2,621,450
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps (a)		—		—		—		—		710,093		—		710,093
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		150,904		—		—		582,685		—		733,589
	$	—	$	150,904	$	—	$	2,621,450	$	1,328,708	$	—	$	4,101,062

SCHEDULES OF INVESTMENTS 21

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts (a)		—		—		—		—		5,011		—		5,011
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		2,711,292		—		—		2,711,292
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps (a)		—		1,170,723		—		—		103,957		—		1,274,680
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		3,320,305		—		—		6,686		—		3,326,991
	$	—	$	4,491,028	$	—	$	2,711,292	$	115,654	$	—	$	7,317,974

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements 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).

For the year ended December 31, 2019, the effect of derivative financial instruments in the Statements of Operations was as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	(1,217,533	)	$	—	$	(1,217,533	)
Forward foreign currency exchange contracts		—		—			—		(758,173	)		—			—		(758,173	)
Options purchased (a)		—		—			—		(1,248,381	)		(141,756	)		—		(1,390,137	)
Options written		—		—			—		318,028			7,453			—		325,481
Swaps		—		(7,199,091	)		—		—			330,166			—		(6,868,925	)
	$	—	$	(7,199,091	)	$	—	$	(1,688,526	)	$	(1,021,670	)	$	—	$	(9,909,287	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—			219,144			—		219,144
Forward foreign currency exchange contracts		—		—			—		902,029			—			—		902,029
Options purchased (b)		—		—			—		70,853			—			—		70,853
Options written		—		—			—		(31,852	)		—			—		(31,852	)
Swaps		—		(1,287,961	)		—		—			392,955			—		(895,006	)
	$	—	$	(1,287,961	)	$	—	$	941,030		$	612,099		$	—	$	265,168

^(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	$	7,646,705
Average notional value of contracts — short		7,002,729
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		225,207,331
Average amounts sold — in USD		205,142,721
Options:
Average value of option contracts purchased		198,588
Average value of option contracts written		13,541
Credit default swaps:
Average notional value — buy protection		66,944,303
Average notional value — sell protection		6,464,787
Interest rate swaps:
Average notional value — pays fixed rate		13,753,195
Average notional value — receives fixed rate		21,502,466

For more information about the Fund’s investment risks regarding derivative financial instruments, refer to the Notes to Financial Statements.

22 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

Derivative Financial Instruments — Offsetting as of Period End

The Fund’s derivative assets and liabilities (by type) were as follows:

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	—	$	31
Forward foreign currency exchange contracts		2,621,450		2,711,292
Swaps — Centrally cleared		—		24,904
Swaps — OTC (a)		733,589		3,326,991
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	3,355,039	$	6,063,218
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		(24,935	)
Total derivative assets and liabilities subject to an MNA	$	3,355,039	$	6,038,283

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

The following tables present the Fund’s derivative assets and liabilities by counterparty net of amounts available for offset under an MNA and net of the related collateral received and pledged by the Fund:

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received			Net Amount of Derivative Assets (b)(c)
Bank of America NA	$	883,100	$	(289,788	)	$	—	$	—		$	593,312
Bank of New York		17,032		(13,917	)		—		—			3,115
Barclays Bank plc		34,447		(34,447	)		—		—			—
BNP Paribas SA		708,540		(336,980	)		—		(170,000	)		201,560
Citibank NA		327,468		(327,468	)		—		—			—
Deutsche Bank AG		78,525		(78,525	)		—		—			—
Goldman Sachs International		228,635		(228,635	)		—		—			—
HSBC Bank plc		46,445		(46,445	)		—		—			—
JPMorgan Chase Bank NA		416,022		(416,022	)		—		—			—
Morgan Stanley & Co. International plc		244,590		(244,590	)		—		—			—
Natwest Markets plc		79,488		(21,950	)		—		—			57,538
Standard Chartered Bank		167,118		(145,600	)		—		—			21,518
State Street Bank and Trust Co.		54,233		—			—		—			54,233
Toronto Dominion Bank		14,776		(14,776	)		—		—			—
UBS AG		54,436		(54,436	)		—		—			—
Westpac Banking Corp.		184		—			—		—			184
	$	3,355,039	$	(2,253,579	)	$	—	$	(170,000	)	$	931,460

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged			Net Amount of Derivative Liabilities (c)(d)
Bank of America NA	$	289,788	$	(289,788	)	$	—	$	—		$	—
Bank of New York		13,917		(13,917	)		—		—			—
Barclays Bank plc		92,928		(34,447	)		—		—			58,481
BNP Paribas SA		336,980		(336,980	)		—		—			—
Citibank NA		3,233,898		(327,468	)		—		(2,730,000	)		176,430
Credit Suisse International		48,331		—			—		—			48,331
Deutsche Bank AG		168,914		(78,525	)		—		—			90,389
Goldman Sachs International		283,850		(228,635	)		—		—			55,215
HSBC Bank plc		113,800		(46,445	)		—		—			67,355
JPMorgan Chase Bank NA		499,088		(416,022	)		—		—			83,066
Morgan Stanley & Co. International plc		576,628		(244,590	)		—		—			332,038
Natwest Markets plc		21,950		(21,950	)		—		—			—
Standard Chartered Bank		145,600		(145,600	)		—		—			—
Toronto Dominion Bank		121,367		(14,776	)		—		—			106,591
UBS AG		91,244		(54,436	)		—		—			36,808
	$	6,038,283	$	(2,253,579	)	$	—	$	(2,730,000	)	$	1,054,704

SCHEDULES OF INVESTMENTS 23

Schedule of Investments  (continued) December 31, 2019 BlackRock Emerging Markets Flexible Dynamic Bond Portfolio

^(a)  The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(d)  Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments and derivative financial instruments. For information about the Fund’s policy regarding valuation of investments and derivative financial instruments, refer to the Notes to Financial Statements.

The following tables summarize the Fund’s investments and derivative financial instruments categorized in the disclosure hierarchy:

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Corporate Bonds
Argentina	$	—		$	116,076		$	—	$	116,076
Brazil		—			3,905,595			—		3,905,595
Kazakhstan		—			5,511,897			—		5,511,897
Supranational		—			537,340			407,385		944,725
Ukraine		—			73,784			—		73,784
Foreign Agency Obligations (a)		—			4,622,523			—		4,622,523
Foreign Government Obligations (a)		—			81,138,231			—		81,138,231
Short-Term Securities (a)		—			13,137,127			—		13,137,127
	$	—		$	109,042,573		$	407,385	$	109,449,958
Derivative Financial Instruments (b)
Assets:
Credit contracts	$	—		$	62,975		$	—	$	62,975
Foreign currency exchange contracts		—			2,621,450			—		2,621,450
Interest rate contracts		35,930			1,292,778			—		1,328,708
Liabilities:
Credit contracts		—			(1,455,604	)		—		(1,455,604	)
Foreign currency exchange contracts		—			(2,711,292	)		—		(2,711,292	)
Interest rate contracts		(5,011	)		(110,643	)		—		(115,654	)
	$	30,919		$	(300,336	)	$	—	$	(269,417	)

^(a)  See above Schedule of Investments for values in each security type or country.

^(b)  Derivative financial instruments are swaps, futures contracts and forward foreign currency exchange contracts. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

24 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments December 31, 2019 BlackRock Strategic Income Opportunities Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Asset-Backed Securities — 13.7%
Cayman Islands — 6.6%
522 Funding CLO I Ltd., Series 2019-1A, Class E, (LIBOR USD 3 Month + 7.34%), 9.24%, 01/15/33(a)(b)		USD	500	$	500,050
ACIS CLO Ltd., Series 2014-4A, Class A, (LIBOR USD 3 Month + 1.42%), 3.33%, 05/01/26(a)(b)			8,153		8,150,798
Adams Mill CLO Ltd.(a)(b):
Series 2014-1A, Class A1R, (LIBOR USD 3 Month + 1.10%), 3.10%, 07/15/26			1,079		1,078,694
Series 2014-1A, Class A2R, (LIBOR USD 3 Month + 1.10%), 3.10%, 07/15/26			4,954		4,955,737
AIMCO CLO, Series 2017-AA, Class A, (LIBOR USD 3 Month + 1.26%), 3.23%, 07/20/29(a)(b)			250		250,685
AIMCO CLO 10 Ltd., Series 2019-10A, Class SUB, 0.00%, 07/22/32(a)(c)			7,900		6,484,747
Allegro CLO I Ltd.(a)(b):
Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.22%), 3.16%, 01/30/26			240		239,999
Series 2013-1A, Class A2R, (LIBOR USD 3 Month + 1.65%), 3.59%, 01/30/26			13,550		13,576,238
Series 2013-1A, Class C, (LIBOR USD 3 Month + 3.45%), 5.39%, 01/30/26			9,020		9,022,410
Allegro CLO II-S Ltd.(a)(b):
Series 2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 3.05%, 10/21/28			11,500		11,458,177
Series 2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 4.12%, 10/21/28			2,740		2,690,111
Series 2014-1RA, Class C, (LIBOR USD 3 Month + 3.00%), 4.97%, 10/21/28			7,480		7,185,823
Allegro CLO IV Ltd.(a)(b):
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.15%, 01/15/30			2,330		2,328,478
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.70%), 3.70%, 01/15/30			6,210		6,195,772
Series 2016-1A, Class CR, (LIBOR USD 3 Month + 2.30%), 4.30%, 01/15/30			7,950		7,865,501
Allegro CLO VI Ltd., Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.13%), 3.13%, 01/17/31(a)(b)			250		247,954
ALM V Ltd.(a)(b):
Series 2012-5A, Class A1R3, (LIBOR USD 3 Month + 0.91%), 2.91%, 10/18/27			6,420		6,415,225
Series 2012-5A, Class BR3, (LIBOR USD 3 Month + 1.65%), 3.65%, 10/18/27			1,310		1,295,653
ALM VI Ltd.(a)(b):
Series 2012-6A, Class A2R3, (LIBOR USD 3 Month + 1.40%), 3.40%, 07/15/26			3,364		3,334,158

Security	Par (000)			Value
Cayman Islands (continued)
Series 2012-6A, Class CR3, (LIBOR USD 3 Month + 2.70%), 4.70%, 07/15/26		USD	5,965	$	5,891,471
Series 2012-6A, Class DR3, (LIBOR USD 3 Month + 5.05%), 7.05%, 07/15/26			3,100		2,863,052
ALM VII Ltd.(a):
Series 2012-7A, Class A1A2, (LIBOR USD 3 Month + 1.17%), 3.17%, 07/15/29(b)			17,750		17,722,134
Series 2012-7A, Class SUB, 0.00%, 10/15/2116(c)			12,160		5,425,792
ALM VII R Ltd., Series 2013-7RA, Class A1R, (LIBOR USD 3 Month + 1.41%), 3.41%, 10/15/28(a)(b)			4,060		4,049,727
ALM VIII Ltd.(a)(b):
Series 2013-8A, Class A1R, (LIBOR USD 3 Month + 1.49%), 3.49%, 10/15/28			18,565		18,592,842
Series 2013-8A, Class A2R, (LIBOR USD 3 Month + 1.80%), 3.80, 10/15/28			400		398,462
ALM XII Ltd.(a)(b):
Series 2015-12A, Class A1R2, (LIBOR USD 3 Month + 0.89%), 2.89%, 04/16/27			17,904		17,897,841
Series 2015-12A, Class BR2, (LIBOR USD 3 Month + 1.65%), 3.65%, 04/16/27			4,957		4,862,711
Series 2015-12A, Class C1R2, (LIBOR USD 3 Month + 2.65%), 4.65%, 04/16/27			4,100		4,099,938
Series 2015-12A, Class C2R2, (LIBOR USD 3 Month + 2.65%), 4.65%, 04/16/27			1,450		1,373,981
ALM XVI Ltd.(a)(b):
Series 2015-16A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 3.50%, 07/15/27			8,949		8,861,682
Series 2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 3.90%, 07/15/27			4,371		4,351,252
Series 2015-16A, Class CR2, (LIBOR USD 3 Month + 2.70%), 4.70%, 07/15/27			7,500		7,262,640
Series 2015-16A, Class DR2, (LIBOR USD 3 Month + 5.10%), 7.10%, 07/15/27			1,160		1,071,050
ALM XVIII Ltd., Series 2016-18A, Class A2R, (LIBOR USD 3 Month + 1.65%), 3.65%, 01/15/28(a)(b)			1,880		1,876,596
AMMC CLO 21 Ltd., Series 2017-21A, Class A, (LIBOR USD 3 Month + 1.25%), 3.15%, 11/02/30(a)(b)			1,720		1,711,883
AMMC CLO XII Ltd., Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.10%, 11/10/30(a)(b)			1,675		1,664,406
AMMC CLO XIII Ltd., Series 2013-13A, Class A1LR, (LIBOR USD 3 Month + 1.26%), 3.20%, 07/24/29(a)(b)			2,500		2,510,937
AMMC CLO XIV Ltd., Series 2014-14A, Class A1LR, (LIBOR USD 3 Month + 1.25%), 3.19%, 07/25/29(a)(b)			10,125		10,107,668
Anchorage Capital CLO 1-R Ltd., Series 2018-1RA, Class A1, (LIBOR USD 3 Month + 0.99%), 2.99%, 04/13/31(a)(b)			6,650		6,546,561

SCHEDULES OF INVESTMENTS 25

Schedule of Investments   (continued) December 31, 2019 BlackRock Strategic Income Opportunities Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Cayman Islands (continued)
Anchorage Capital CLO 3-R Ltd.(a)(b):
Series 2014-3RA, Class A, (LIBOR USD 3 Month + 1.05%), 2.99%, 01/28/31	USD		2,950	$	2,925,923
Series 2014-3RA, Class B, (LIBOR USD 3 Month + 1.50%), 3.44%, 01/28/31			5,550		5,461,935
Series 2014-3RA, Class D, (LIBOR USD 3 Month + 2.60%), 4.54%, 01/28/31			1,050		1,003,159
Anchorage Capital CLO 4-R Ltd., Series 2014-4RA, Class A, (LIBOR USD 3 Month + 1.05%), 2.99%, 01/28/31(a)(b)			6,580		6,539,591
Anchorage Capital CLO 5-R Ltd.(a)(b):
Series 2014-5RA, Class B, (LIBOR USD 3 Month + 1.45%), 3.45%, 01/15/30			15,535		15,326,715
Series 2014-5RA, Class C, (LIBOR USD 3 Month + 1.85%), 3.85%, 01/15/30			3,700		3,591,765
Anchorage Capital CLO 6 Ltd.(a)(b):
Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.27%), 3.27%, 07/15/30			5,250		5,235,952
Series 2015-6A, Class DR, (LIBOR USD 3 Month + 3.55%), 5.55%, 07/15/30			2,660		2,659,932
Anchorage Capital CLO 7 Ltd.(a)(b):
Series 2015-7A, Class AR, (LIBOR USD 3 Month + 0.96%), 2.96%, 10/15/27			39,870		39,840,899
Series 2015-7A, Class B1R, (LIBOR USD 3 Month + 1.30%), 3.30%, 10/15/27			1,500		1,483,878
Series 2015-7A, Class CR, (LIBOR USD 3 Month + 1.70%), 3.70%, 10/15/27			5,047		5,032,973
Series 2015-7A, Class DR, (LIBOR USD 3 Month + 2.70%), 4.70%, 10/15/27			4,335		4,334,923
Series 2015-7A, Class ER, (LIBOR USD 3 Month + 5.60%), 7.60%, 10/15/27			2,250		2,227,636
Anchorage Capital CLO 8 Ltd.(a)(b):
Series 2016-8A, Class AR, (LIBOR USD 3 Month + 1.00%), 2.94%, 07/28/28			7,600		7,596,683
Series 2016-8A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.54%, 07/28/28			8,855		8,800,410
Series 2016-8A, Class CR, (LIBOR USD 3 Month + 2.10%), 4.04%, 07/28/28			17,190		16,843,754
Series 2016-8A, Class DR, (LIBOR USD 3 Month + 3.00%), 4.94%, 07/28/28			5,650		5,622,587
Series 2016-8A, Class ER, (LIBOR USD 3 Month + 5.75%), 7.69%, 07/28/28			7,970		7,852,164
Anchorage Capital CLO Ltd.(a)(b):
Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.24%, 10/13/30			2,910		2,894,229
Series 2013-1A, Class A2R, (LIBOR USD 3 Month + 1.65%), 3.64%, 10/13/30			3,680		3,645,270

Security		Par (000)		Value
Cayman Islands (continued)
Series 2013-1A, Class BR, (LIBOR USD 3 Month + 2.15%), 4.14%, 10/13/30	USD		1,160	$	1,135,917
Series 2013-1A, Class CR, (LIBOR USD 3 Month + 3.20%), 5.19%, 10/13/30			1,333		1,326,986
Series 2013-1A, Class DR, (LIBOR USD 3 Month + 6.80%), 8.79%, 10/13/30			3,210		3,199,716
Apidos CLO XV, Series 2013-15A, Class A1RR, (LIBOR USD 3 Month + 1.01%), 2.98%, 04/20/31(a)(b)			4,630		4,578,870
Apidos CLO XVI, Series 2013-16A, Class CR, (LIBOR USD 3 Month + 3.00%), 4.97%, 01/19/25(a)(b)			2,775		2,775,001
Apidos CLO XVIII, Series 2018-18A, Class A1, (LIBOR USD 3 Month + 1.14%), 3.09%, 10/22/30(a)(b)			250		249,242
Apidos CLO XXI, Series 2015-21A, Class CR, (LIBOR USD 3 Month + 2.45%), 4.45%, 07/18/27(a)(b)			500		487,757
Apidos CLO XXII(a)(b):
Series 2015-22A, Class C, (LIBOR USD 3 Month + 3.80%), 5.77%, 10/20/27			1,500		1,490,496
Series 2015-22A, Class D, (LIBOR USD 3 Month + 6.00%), 7.97%, 10/20/27			750		751,418
Apidos CLO XXIII, Series 2015-23A, Class D2, (LIBOR USD 3 Month + 5.95%), 7.95%, 01/15/27(a)(b)			3,752		3,602,903
Apidos CLO XXIX, Series 2018-29A, Class D, (LIBOR USD 3 Month + 5.25%), 7.19%, 07/25/30(a)(b)			1,860		1,676,645
Apres Static CLO Ltd.(a)(b);
Series 2019-1A, Class A2, (LIBOR USD 3 Month + 1.75%), 3.75%, 01/15/27			1,150		1,145,373
Series 2019-1A, Class C, (LIBOR USD 3 Month + 3.65%), 5.65%, 01/15/27			6,000		5,967,708
Series 2019-1A, Class D, (LIBOR USD 3 Month + 6.65%), 8.65%, 01/15/27			1,500		1,498,604
Arbor Realty CLO Ltd., Series 2017-FL3, Class A, (LIBOR USD 1 Month + 0.99%), 2.73%, 12/15/27(a)(b)			9,740		9,741,365
Arbor Realty Commercial Real Estate Notes Ltd., Series 2017-FL2, Class A, (LIBOR USD 1 Month + 0.99%) 2.73%, 08/15/27(a)(b)			4,410		4,410,411
Ares XLI CLO Ltd., Series 2016-41A, Class D, (LIBOR USD 3 Month + 4.20%), 6.20%, 01/15/29(a)(b)			1,400		1,400,267
Ares XLIV CLO Ltd., Series 2017-44A, Class D, (LIBOR USD 3 Month + 6.55%), 8.55%, 10/15/29(a)(b)			550		539,013
Ares XLV CLO Ltd., Series 2017-45A, Class C, (LIBOR USD 3 Month + 2.05%), 4.05%, 10/15/30(a)(b)			1,125		1,096,293
Ares XXIX CLO Ltd.(a)(b):
Series 2014-1A, Class A1R, (LIBOR USD 3 Month + 1.19%), 3.19%, 04/17/26			371		371,501

26 2019 BLACKROCK ANNUAL REPORT TO SHAREHOLDERS

Schedule of Investments   (continued) December 31, 2019 BlackRock Strategic Income Opportunities Portfolio (Percentages shown are based on Net Assets)

Security	Par (000)			Value
Cayman Islands (continued)
Series 2014-1A, Class BR, (LIBOR USD 3 Month + 2.30%), 4.30%, 04/17/26		USD	4,700	$	4,713,062
Ares XXXIV CLO Ltd., Series 2015-2A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.43%, 07/29/26(a)(b)			585		585,032
Ares XXXVII CLO Ltd.(a)(b):
Series 2015-4A, Class A1R, (LIBOR USD 3 Month + 1.17%), 3.17%, 10/15/30			1,500		1,501,952
Series 2015-4A, Class DR, (LIBOR USD 3 Month + 6.15%), 8.15%, 10/15/30			2,440		2,341,184
Assurant CLO I Ltd., Series 2017-1A, Class B, (LIBOR USD 3 Month + 1.70%), 3.67%, 10/20/29(a)(b)			1,710		1,690,613
Assurant CLO III Ltd., Series 2018-2A, Class C, (LIBOR USD 3 Month + 2.25%), 4.22%, 10/20/31(a)(b)			1,130		1,094,924
Atrium VIII, Series 8A, Class SUB, 0.00%, 10/23/24(a)(c)			13,300		580,731
Atrium XII, Series 12A, Class CR, (LIBOR USD 3 Month + 1.65%), 3.60%, 04/22/27(a)(b)			4,365		4,284,539
Avery Point IV CLO Ltd.(a)(b):
Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 3.04%, 04/25/26			7,866		7,874,903
Series 2014-1A, Class D, (LIBOR USD 3 Month + 3.50%), 5.44%, 04/25/26			3,750		3,750,011
Avery Point V CLO Ltd.(a)(b):
Series 2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 2.98%, 07/17/26			4,306		4,302,780
Series 2014-5A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.50%, 07/17/26			1,730		1,726,836
Avery Point VI CLO Ltd.(a)(b):
Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.05%), 2.94%, 08/05/27			20,200		20,152,118
Series 2015-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.39%, 08/05/27			9,070		9,010,415
Avery Point VII CLO Ltd., Series 2015-7A, Class AR, (LIBOR USD 3 Month + 1.14%), 3.14%, 01/15/28(a)(b)			15,000		14,975,112
Babson CLO Ltd., Series 2015-IA, Class BR, (LIBOR USD 3 Month + 1.40%), 3.37%, 01/20/31(a)(b)			250		245,040
Bain Capital Credit CLO Ltd.(a)(b):
Series 2016-2A, Class AR, (LIBOR USD 3 Month + 1.14%), 3.14%, 01/15/29			4,000		3,994,568
Series 2016-2A, Class BR, (LIBOR USD 3 Month + 1.80%), 3.80%, 01/15/29			2,650		2,650,022
Series 2018-2A, Class A1, (LIBOR USD 3 Month + 1.08%), 3.05%, 07/19/31			5,210		5,182,940
Ballyrock CLO Ltd.(a)(b):
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.35%), 3.35%, 10/15/28			25,250		25,270,165

Security	Par (000)			Value
Cayman Islands (continued)
Series 2016-1A, Class B1R, (LIBOR USD 3 Month + 1.65%), 3.65%, 10/15/28		USD	18,000	$	17,954,903
Series 2016-1A, Class CR, (LIBOR USD 3 Month + 2.40%), 4.40%, 10/15/28			5,750		5,694,037
Series 2016-1A, Class DR, (LIBOR USD 3 Month + 3.50%), 5.50%, 10/15/28			9,050		8,998,447
Barings CLO Ltd., Series 2018-3A, Class A1, (LIBOR USD 3 Month + 0.95%), 2.92%, 07/20/29(a)(b)			2,210		2,193,050
Battalion CLO VII Ltd.(a)(b):
Series 2014-7A, Class A1RR, (LIBOR USD 3 Month + 1.04%), 3.04%, 07/17/28			1,870		1,868,741
Series 2014-7A, Class BRR, (LIBOR USD 3 Month + 2.50%), 4.50%, 07/17/28			11,862		11,746,245
Battalion CLO X Ltd.(a)(b):
Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.19%, 01/24/29			38,050		38,061,210
Series 2016-10A, Class A2R, (LIBOR USD 3 Month + 1.80%), 3.74%, 01/24/29			22,300		22,300,885
Series 2016-10A, Class CR, (LIBOR USD 3 Month + 3.45%), 5.39%, 01/24/29			5,000		4,969,887
Series 2016-10A, Class DR, (LIBOR USD 3 Month + 6.65%), 8.59%, 01/24/29			2,500		2,456,426
Battalion CLO XI Ltd., Series 2017-11A, Class E, (LIBOR USD 3 Month + 5.98%), 7.92%, 10/24/29(a)(b)			2,420		2,298,556
BDS Ltd., Series 2019-FL3, Class A, (LIBOR USD 1 Month + 1.40%), 3.14%, 12/15/35(a)(b)			12,520		12,529,806
Bean Creek CLO Ltd., Series 2015-1A, Class ER, (LIBOR USD 3 Month + 5.75%), 7.72%, 04/20/31(a)(b)			370		336,551
Benefit Street Partners CLO II Ltd.(a)(b):
Series 2013-IIA, Class A2R, (LIBOR USD 3 Month + 1.75%), 3.75%, 07/15/29			19,635		19,594,609
Series 2013-IIA, Class CR, (LIBOR USD 3 Month + 3.70%), 5.70%, 07/15/29			1,500		1,404,091
Benefit Street Partners CLO III Ltd.,
Series 2013-IIIA, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.22%, 07/20/29(a)(b)			250		251,081
Benefit Street Partners CLO IV Ltd.(a)(b) Series 2014-IVA, Class A1RR, (LIBOR USD 3 Month + 1.25%), 3.22%, 01/20/29			25,180		25,214,973
Series 2014-IVA, Class A2RR, (LIBOR USD 3 Month + 1.75%), 3.72%, 01/20/29			2,500		2,497,300