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 Core Bond Portfolio

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Impact Mortgage Fund (Formerly BlackRock U.S. Government Bond Portfolio)

BlackRock Income Fund

BlackRock Low Duration Bond Portfolio

BlackRock Sustainable High Yield Bond Fund

BlackRock Sustainable Low Duration Bond Fund

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: 09/30/2022

Date of reporting period: 09/30/2022

Item 1 – Report to Stockholders

(a)

The Report to Shareholders is attached herewith.

(b)

Not Applicable

September

30,

2022

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2022

Annual

Report

BlackRock

Funds

V

BlackRock

Core

Bond

Portfolio

BlackRock

High

Yield

Bond

Portfolio

BlackRock

Low

Duration

Bond

Portfolio

Dear

Shareholder,

The

12-month

reporting

period

as

of

September

30,

2022

saw

the

emergence

of

significant

challenges

that

disrupted

the

economic

recovery

and

strong

financial

markets

of

2021.

The

U.S.

economy

shrank

in

the

first

half

of

2022,

ending

the

run

of

robust

growth

that

followed

the

reopening

of

global

economies

and

the

development

of

COVID-19

vaccines.

Changes

in

consumer

spending

patterns

and

a

tight

labor

market

led

to

elevated

inflation,

which

reached

a

40-year

high.

Moreover,

while

the

foremost

effect

of

Russia’s

invasion

of

Ukraine

has

been

a

severe

humanitarian

crisis,

the

ongoing

war

continued

to

present

challenges

for

both

investors

and

policymakers.

Equity

prices

fell

as

interest

rates

rose,

particularly

weighing

on

relatively

high-valuation

growth

stocks

and

economically

sensitive

small-capitalization

stocks.

While

both

large-

and

small-capitalization

U.S.

stocks

fell,

declines

for

small-capitalization

U.S.

stocks

were

steeper.

Both

emerging

market

stocks

and

international

equities

from

developed

markets

fell

significantly,

pressured

by

rising

interest

rates

and

a

strengthening

U.S.

dollar.

The

10-year

U.S.

Treasury

yield

(which

is

inversely

related

to

bond

prices)

rose

notably

during

the

reporting

period

as

investors

reacted

to

higher

inflation

and

attempted

to

anticipate

its

impact

on

future

interest

rate

changes.

The

corporate

bond

market

also

faced

inflationary

headwinds,

and

increasing

uncertainty

led

to

higher

corporate

bond

spreads

(the

difference

in

yield

between

U.S.

Treasuries

and

similarly-dated

corporate

bonds).

The

U.S.

Federal

Reserve

(the

“Fed”),

acknowledging

that

inflation

is

proving

more

persistent

than

expected,

raised

interest

rates

five

times

while

indicating

that

additional

rate

hikes

were

likely.

Furthermore,

the

Fed

wound

down

its

bond-buying

programs

and

is

accelerating

the

reduction

of

its

balance

sheet.

As

investors

attempted

to

assess

the

Fed’s

future

trajectory,

the

Fed’s

statements

late

in

the

reporting

period

led

markets

to

believe

that

additional

tightening

is

likely

in

the

near

term.

The

pandemic’s

restructuring

of

the

economy

brought

an

ongoing

mismatch

between

supply

and

demand,

contributing

to

the

current

inflationary

regime.

While

growth

has

slowed

in

2022,

we

believe

that

taming

inflation

requires

a

more

dramatic

economic

decline

to

bring

demand

back

to

a

lower

level

that

is

more

in

line

with

the

economy’s

capacity.

The

Fed

has

been

raising

interest

rates

at

the

fastest

pace

in

decades,

and

seems

set

to

overtighten

in

its

effort

to

get

inflation

back

to

target.

With

this

in

mind,

we

believe

the

possibility

of

a

U.S.

recession

in

the

near-term

is

high,

and

the

outlook

for

Europe

and

the

U.K.

is

also

troubling.

Investors

should

expect

a

period

of

higher

volatility

as

markets

adjust

to

the

new

economic

reality

and

policymakers

attempt

to

adapt

to

rapidly

changing

conditions.

In

this

environment,

while

we

favor

an

overweight

to

equities

in

the

long-term,

the

market’s

concerns

over

excessive

rate

hikes

from

central

banks

moderate

our

outlook.

Rising

input

costs

and

a

deteriorating

economic

backdrop

in

China

and

Europe

are

likely

to

challenge

corporate

earnings,

so

we

are

underweight

equities

overall

in

the

near

term.

However,

we

see

better

opportunities

in

credit,

where

higher

spreads

provide

income

opportunities

and

partially

compensate

for

inflation

risk.

We

believe

that

investment-grade

corporates,

local-

currency

emerging

market

debt,

and

inflation-protected

bonds

(particularly

in

Europe)

offer

strong

opportunities

for

a

six-

to

twelve-month

horizon.

Overall,

our

view

is

that

investors

need

to

think

globally,

position

themselves

to

be

prepared

for

a

decarbonizing

economy,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackrock.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

September

30,

2022

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

(20.20

)%

(15.47

)%

U.S.

small

cap

equities

(Russell

2000

®

Index)

(19.01

)

(23.50

)

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

(22.51

)

(25.13

)

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

(21.70

)

(28.11

)

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

0.58

0.63

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

(10.81

)

(16.20

)

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

(9.22

)

(14.60

)

Tax-exempt

municipal

bonds

(Bloomberg

Municipal

Bond

Index)

(6.30

)

(11.50

)

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

(10.42

)

(14.15

)

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

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

2

Annual

Report:

Fund

Summaries

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

4

The

Benefits

and

Risks

of

Leveraging

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

13

About

Fund

Performance

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

14

Disclosure

of

Expenses

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

15

Derivative

Financial

Instruments

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

15

Financial

Statements:

Schedules

of

Investments

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

16

Statements

of

Assets

and

Liabilities

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

110

Statements

of

Operations

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

113

Statements

of

Changes

in

Net

Assets

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

114

Financial

Highlights

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

116

Notes

to

Financial

Statements

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

133

Report

of

Independent

Registered

Public

Accounting

Firm

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

151

Important

Tax

Information

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

152

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

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

153

Trustee

and

Officer

Information

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

157

Additional

Information

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

160

Glossary

of

Terms

Used

in

this

Report

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

162

Fund

Summary

as

of

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

4

BlackRock

Core

Bond

Portfolio

Investment

Objective

BlackRock

Core

Bond

Portfolio’s

(the

“Fund”)

investment

objective

is

to

seek

to

realize

a

total

return

that

exceeds

that

of

the

reference

benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

the

Fund

underperformed

its

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index.

What

factors

influenced

performance?

Holdings

of

structured

products,

U.S.

investment

grade

corporate

bonds

and

emerging

market

debt

were

the

primary

detractors

from

the

Fund’s

performance

relative

to

the

benchmark

over

the

period.

The

Fund’s

active

positioning

with

respect

to

duration

(sensitivity

to

interest

rate

changes)

was

the

most

significant

contributor

to

performance

relative

to

the

benchmark

as

Treasury

yields

rose

over

the

period.

Positioning

with

respect

to

foreign

currencies

also

proved

additive.

The

Fund

held

a

6.2%

cash

position

on

average

over

the

period

and

a

4.6%

cash

position

at

period

end.

For

much

of

the

period,

the

managers

were

underweight

duration

versus

the

benchmark

as

the

yield

curve

steepened,

while

also

holding

an

elevated

cash

position.

The

Fund’s

cash

position

did

not

have

a

material

impact

on

performance

during

the

period.

Describe

recent

portfolio

activity.

Early

in

the

reporting

period

the

Fund

shifted

towards

a

much

more

defensive

posture

given

a

challenging

macro

and

geopolitical

backdrop.

The

Fund

trimmed

exposure

to

more

credit

sensitive

sectors,

most

notably

emerging

market

debt,

while

holding

an

elevated

cash

position

and

elevated

exposure

to

high-quality

assets,

including

U.S.

investment

grade

corporate

bonds

and

agency

mortgage-backed

securities

(“MBS”).

In

the

second

quarter

of

2022,

the

Fund

tactically

reduced

U.S.

duration

given

elevated

interest

rate

volatility

and

yield

curve

steepening.

Within

investment

grade

corporate

bonds,

the

Fund

added

exposure

while

favoring

less-cyclical

sectors

given

elevated

credit

cycle

concerns

and

sticky

inflation.

Holdings

of

agency

MBS

were

trimmed

on

substantial

weakness

relative

to

other

spread

sectors,

while

emerging

market

exposure

was

kept

low

given

high

inflation

and

weakening

growth.

Entering

the

third

quarter

of

2022,

the

Fund

tactically

added

duration

on

the

front-

and

back-end

of

the

yield

curve

given

more

attractive

yield

levels

and

risk/reward

profiles.

The

Fund

rotated

across

select

spread

sectors

given

more

attractive

opportunities,

favoring

U.S.

investment

grade

corporate

bonds

given

attractive

valuations,

while

tactically

adding

to

agency

MBS.

In

addition,

the

Fund

held

a

core

allocation

to

securitized

assets

while

taking

a

defensive

posture

with

respect

to

emerging

markets.

Describe

portfolio

positioning

at

period

end.

At

period

end,

the

Fund

maintained

an

overall

underweight

to

duration.

Outside

of

the

United

States,

the

Fund

held

a

tactical

position

in

short-dated

U.K.

sovereign

bonds,

while

remaining

less

favorable

towards

European

sovereigns.

The

Fund

was

overweight

investment

grade

corporate

bonds

and

agency

MBS.

The

Fund

was

focused

on

the

top

of

the

capital

structure

within

structured

products

and

was

cautiously

positioned

with

respect

to

emerging

market

debt.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

5

Fund

Summary

BlackRock

Core

Bond

Portfolio

GROWTH

OF

$10,000

INVESTMENT

Performance

N/A

–

Not

applicable

as

share

class

and

Index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

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

normally

invests

at

least

80%

of

its

assets

in

bonds

and

maintains

an

average

portfolio

duration

that

is

within

±20%

of

the

duration

of

the

Bloomberg

U.S.

Aggregate

Bond

Index

(the

“benchmark”).

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

Core

Bond

Portfolio

(the

“Predecessor

Fund”),

a

series

of

BlackRock

Funds

II,

through

a

tax-free

reorganization

(the

“Reorganization”).

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

Bloomberg

U.S.

Aggregate

Bond

Index

,

a

broad-based

flagship

benchmark

that

measures

the

investment

grade,

U.S.

dollar-denominated,

fixed-rate

taxable

bond

market.

Average

Annual

Total

Returns

(a)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

3.78‌%

3.68‌%

(15.67‌)%

N/A‌

(0.29‌)%

N/A‌

1.08‌%

N/A‌

Investor

A

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

3.39‌

3.26‌

(15.86‌)

(19.23‌)%

(0.53‌)

(1.34‌)%

0.79‌

0.38‌%

Investor

C

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

2.76‌

2.64‌

(16.48‌)

(17.30‌)

(1.28‌)

(1.28‌)

0.21‌

0.21‌

Class

K

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

3.84‌

3.79‌

(15.68‌)

N/A‌

(0.25‌)

N/A‌

1.14‌

N/A‌

Class

R

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

3.27‌

2.84‌

(16.07‌)

N/A‌

(0.80‌)

N/A‌

0.54‌

N/A‌

Bloomberg

U.S.

Aggregate

Bond

Index

.....

—‌

—‌

(14.60‌)

N/A‌

(0.27‌)

N/A‌

0.89‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

6

BlackRock

Core

Bond

Portfolio

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

900.80‌

$

2.05‌

$

1,000.00‌

$

1,022.91‌

$

2.18‌

0.43‌%

Investor

A

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

1,000.00‌

898.80‌

3.24‌

1,000.00‌

1,021.66‌

3.45‌

0.68‌

Investor

C

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

1,000.00‌

895.90‌

6.80‌

1,000.00‌

1,017.90‌

7.23‌

1.43‌

Class

K

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

1,000.00‌

900.30‌

1.81‌

1,000.00‌

1,023.16‌

1.93‌

0.38‌

Class

R

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

1,000.00‌

897.70‌

4.42‌

1,000.00‌

1,020.41‌

4.71‌

0.93‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Government

Sponsored

Agency

Securities

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

34.4‌

%

Corporate

Bonds

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

26.8‌

U.S.

Treasury

Obligations

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

19.4‌

Asset-Backed

Securities

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

10.6‌

Non-Agency

Mortgage-Backed

Securities

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

7.0‌

Foreign

Government

Obligations

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

0.8‌

Municipal

Bonds

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

0.7‌

Preferred

Securities

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

0.2‌

Foreign

Agency

Obligations

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

0.1‌

Other

Interests

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

0.0‌

(b)

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/Aaa

(

d

)

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

64.7‌

%

AA/Aa

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

3.3‌

A

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

11.5‌

BBB/Baa

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

17.8‌

BB/Ba

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

0.4‌

B

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

0.1‌

CCC/Caa

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

0.0‌

(b)

NR

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

2.2‌

(a)

Excludes

short-term

securities,

options

purchased,

options

written

and

TBA

sale

commitments.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

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.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

Fund

Summary

as

of

September

30,

2022

7

Fund

Summary

BlackRock

High

Yield

Bond

Portfolio

Investment

Objective

BlackRock

High

Yield

Bond

Portfolio’s

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

total

return,

consistent

with

income

generation

and

prudent

investment

management.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

all

of

the

Fund’s

share

classes

outperformed

its

benchmark,

the

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index,

except

the

Fund’s

Investor

C

class

shares

which

performed

in

line.

What

factors

influenced

performance?

From

a

sector

perspective,

the

Fund’s

overweight

to

independent

energy

within

its

core

allocation

to

high

yield

corporate

bonds

was

a

leading

positive

contributor

to

performance,

along

with

underweights

to

retailers

and

pharmaceuticals.

In

terms

of

credit

quality,

the

Fund’s

underweight

to

BB-rated

issues

and

overweight

to

B-rated

issues

contributed

to

relative

performance.

Asset

allocation

overall

was

a

contributor

as

well,

highlighted

by

a

tactical,

out-of-benchmark

allocation

to

floating

rate

bank

loans.

From

a

sector

perspective,

the

Fund’s

overweight

allocations

to

technology

and

wirelines

weighed

on

relative

performance.

The

Fund’s

tactical

allocation

to

liquid,

high

yield

index

products,

a

key

tool

in

the

portfolio,

also

detracted

from

performance.

From

an

asset

allocation

perspective,

an

out-of-benchmark

allocation

to

investment

grade

corporate

bonds

constrained

return

as

the

segment

was

negatively

impacted

by

the

sharp

upward

move

in

interest

rates.

Describe

recent

portfolio

activity.

The

Fund’s

overall

risk

profile

was

lowered

during

the

period

amid

concerns

over

a

potential

recession

and

rising

interest

rates.

The

Fund’s

total

credit

exposure

was

reduced

along

with

portfolio

duration

(and

corresponding

interest

rate

sensitivity).

In

addition,

the

Fund

reduced

its

holdings

of

liquid

products.

The

Fund

also

trimmed

tactical

allocations

to

equities,

particularly

in

the

energy

space.

Finally,

exposure

to

healthcare

issues

was

reduced

on

the

view

that

the

sector

faces

strong

headwinds.

The

Fund

ended

the

period

with

a

cash

position

of

approximately

5.5%.

The

Fund’s

cash

position

was

largely

the

result

of

inflows

into

the

Fund

and

a

measured

approach

to

deploying

cash.

The

Fund’s

cash

position

did

not

have

a

material

impact

on

performance.

Describe

portfolio

positioning

at

period

end.

From

a

credit

quality

perspective,

the

Fund

remained

underweight

in

BB-rated

investments

and

overweight

B

and

select

CCC

issues.

The

Fund

maintained

an

allocation

to

bank

loans

of

approximately

10%.

Loans

have

been

a

critical

asset

allocation

tool

for

the

Fund

as

their

lack

of

duration

(and

corresponding

lack

of

interest

rate

sensitivity)

have

driven

them

to

outperform

fixed-rate

high

yield

as

Treasury

yields

moved

higher.

The

Fund

maintained

an

underweight

to

the

highest-yielding

portion

of

the

market

that

contains

a

larger

concentration

of

stressed

assets.

In

broad

terms,

the

Fund’s

positioning

was

driven

by

individual

security

selection

rather

than

any

sector

preferences.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

8

BlackRock

High

Yield

Bond

Portfolio

GROWTH

OF

$10,000

INVESTMENT

Performance

N/A

–

Not

applicable

as

share

class

and

Index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

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

non-investment

grade

bonds

with

maturities

of

ten

years

or

less.

The

Fund

normally

invests

at

least

80%

of

its

assets

in

high

yield

bonds.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

High

Yield

Bond

Portfolio

(the

“Predecessor

Fund”),

a

series

of

BlackRock

Funds

II,

through

a

tax-free

reorganization

(the

“Reorganization”).

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index,

an

unmanaged

index

comprised

of

issues

that

meet

the

following

criteria:

at

least

$150

million

par

value

outstanding;

maximum

credit

rating

of

Ba1;

at

least

one

year

to

maturity;

and

no

issuer

represents

more

than

2%

of

the

index.

Average

Annual

Total

Returns

(a)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

7.29‌%

7.28‌%

(13.21‌)%

N/A‌

1.73‌%

N/A‌

4.13‌%

N/A‌

Service

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

7.00‌

6.99‌

(13.46‌)

N/A‌

1.44‌

N/A‌

3.83‌

N/A‌

Investor

A

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

6.65‌

6.63‌

(13.52‌)

(16.98‌)%

1.36‌

0.54‌

%

3.78‌

3.36‌%

Investor

C

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

6.23‌

6.22‌

(14.18‌)

(15.00‌)

0.67‌

0.

67‌

3.17‌

3.17‌

Class

K

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

7.39‌

7.38‌

(13.12‌)

N/A‌

1.83‌

N/A‌

4.22‌

N/A‌

Class

R

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

6.66‌

6.66‌

(13.84‌)

N/A‌

1.09‌

N/A‌

3.47‌

N/A‌

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index

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

—‌

—‌

(14.15‌)

N/A‌

1.56‌

N/A‌

3.94‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees.

Fund

Summary

as

of

September

30,

2022

(continued)

9

Fund

Summary

BlackRock

High

Yield

Bond

Portfolio

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

895.80‌

$

2.76‌

$

1,000.00‌

$

1,022.16‌

$

2.94‌

0.58‌%

Service

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

1,000.00‌

894.50‌

4.08‌

1,000.00‌

1,020.76‌

4.36‌

0.86‌

Investor

A

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

1,000.00‌

892.90‌

4.37‌

1,000.00‌

1,020.46‌

4.66‌

0.92‌

Investor

C

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

1,000.00‌

890.10‌

7.53‌

1,000.00‌

1,017.10‌

8.04‌

1.59‌

Class

K

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

1,000.00‌

896.20‌

2.28‌

1,000.00‌

1,022.66‌

2.43‌

0.48‌

Class

R

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

1,000.00‌

891.80‌

5.50‌

1,000.00‌

1,019.25‌

5.87‌

1.16‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

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

86.5‌

%

Floating

Rate

Loan

Interests

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

11.3‌

Preferred

Securities

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

1.1‌

Common

Stocks

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

0.9‌

Asset-Backed

Securities

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

0.1‌

Foreign

Agency

Obligations

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

0.1‌

Other

Interests

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

0.0‌

(b)

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

A

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

0.3‌

%

BBB/Baa

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

8.6‌

BB/Ba

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

37.1‌

B

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

37.0‌

CCC/Caa

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

13.9‌

NR

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

3.1‌

(a)

Excludes

short-term

securities,

options

purchased,

options

written

and

investments

sold

short.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

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.

Fund

Summary

as

of

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

10

BlackRock

Low

Duration

Bond

Portfolio

Investment

Objective

BlackRock

Low

Duration

Bond

Portfolio’s

(the

“Fund”)

investment

objective

is

to

seek

total

return

in

excess

of

the

reference

benchmark

in

a

manner

that

is

consistent

with

preservation

of

capital.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

the

Fund

underperformed

the

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index.

What

factors

influenced

performance?

The

principal

detractor

from

the

Fund’s

performance

relative

to

the

benchmark

was

the

allocation

to

mortgage-backed

securities

(“MBS”).

Other

detractors

included

emerging

market

debt,

investment

grade

corporate

bonds,

high

yield

corporate

bonds,

asset-backed

securities

(“ABS”)

and

commercial

mortgage-backed

securities

(“CMBS”).

In

summary,

the

Fund’s

allocations

to

sectors

that

trade

at

a

yield

spread

relative

to

U.S.

Treasuries

detracted

from

relative

performance.

Positive

contributors

to

the

Fund's

relative

performance

included

the

allocation

to

U.S.

Treasuries,

and

exposure

to

Sovereigns,

Supranationals

and

Agencies

(bonds

backed

by

multiple

governments).

The

Fund’s

stance

with

respect

to

duration

and

corresponding

interest

rate

sensitivity

along

with

positioning

along

the

yield

curve

added

to

performance.

Finally,

the

Fund’s

modest

allocation

to

cash

and

cash

equivalents

proved

additive.

Describe

recent

portfolio

activity.

The

Fund

held

a

short

duration

bias

for

much

of

the

year,

in

anticipation

that

persistent

inflation

and

central

bank

tightening

would

continue

to

push

rates

higher.

As

this

largely

came

to

fruition,

the

Fund

reduced

its

short

duration

bias,

and

ultimately

assumed

a

neutral-to-long

duration

stance

on

the

view

that

the

market

had

close

to

fully

priced

in

Fed

rate

hikes

and

on

signs

that

the

labor

market

is

softening

and

inflation

easing.

The

Fund

tactically

traded

investment

grade

corporate

bonds

while

reducing

exposure

to

high

yield

corporate

bonds

and

emerging

market

bonds

given

the

outlook

for

a

slowing

economy.

The

Fund

increased

ABS

exposure

with

a

focus

on

prime

auto

and

consumer

ABS,

focusing

on

deals

with

high

quality

collateral

as

consumers

could

be

put

under

pressure

from

higher

debt

servicing

costs

as

interest

rates

increase.

Exposure

to

AAA-rated

collateralized

loan

obligations

was

also

increased

notably,

while

the

Fund

was

more

cautious

regarding

CMBS.

The

allocation

to

agency

MBS

was

increased

late

in

the

period

based

on

attractive

valuation.

Describe

portfolio

positioning

at

period

end.

At

the

end

of

the

period,

the

Fund

was

positioned

with

a

long

duration

bias

on

the

view

that

the

extent

of

Fed

rate

hikes

is

close

to

fully

priced-in

by

markets.

The

Fund

had

relatively

high

by

historical

standards

allocations

to

U.S.

Treasuries

and

agency

MBS

which

bear

little

to

no

credit

risk

in

the

event

of

an

economic

downturn.

However,

the

exposure

to

U.S.

Treasuries

remained

underweight

versus

the

benchmark.

The

allocation

to

investment

grade

corporate

bonds

was

overweight

versus

the

benchmark.

The

Fund

held

out-of-benchmark

allocations

to

high

yield

corporate

bonds,

ABS,

CMBS

and

agency

and

non-agency

MBS.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

11

Fund

Summary

BlackRock

Low

Duration

Bond

Portfolio

GROWTH

OF

$10,000

INVESTMENT

Performance

N/A

–

Not

applicable

as

share

class

and

Index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

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

investment

grade

bonds

and

maintains

an

average

portfolio

duration

that

is

between

0-3

years.

The

Fund

normally

invests

at

least

80%

of

its

assets

in

debt

securities.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

Low

Duration

Bond

Portfolio

(the

“Predecessor

Fund”),

a

series

of

BlackRock

Funds

II,

through

a

tax-free

reorganization

(the

“Reorganization”).

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

An

unmanaged

index

comprised

of

investment

grade

corporate

bonds

and

U.S.

Government

Agency

and

U.S.

Treasury

securities

with

a

maturity

ranging

from

one

to

three

years.

On

March

1,

2021

the

Fund

began

to

track

the

4pm

pricing

variant

of

the

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index

(the

"Index").

Historical

index

data

prior

to

March

1,

2021

is

for

the

3pm

pricing

variant

of

the

Index.

Index

data

on

and

after

March

1,

2021

is

for

the

4pm

pricing

variant

of

the

Index.

Average

Annual

Total

Returns

(a)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

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

3.64‌%

3.62‌%

(6.61‌)%

N/A‌

0.55‌%

N/A‌

1.10‌%

N/A‌

Investor

A

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

3.31‌

3.22‌

(6.95‌)

(9.04‌)%

0.28‌

(0.18‌)%

0.81‌

0.58‌%

Investor

A1

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

3.54‌

3.43‌

(6.80‌)

N/A‌

0.43‌

N/A‌

0.97‌

N/A‌

Investor

C

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

2.63‌

2.60‌

(7.65‌)

(8.56‌)

(0.47‌)

(0.47‌)

0.21‌

0.21‌

Class

K

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

3.69‌

3.68‌

(6.67‌)

N/A‌

0.58‌

N/A‌

1.15‌

N/A‌

Class

R

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

3.13‌

2.85‌

(7.18‌)

N/A‌

0.03‌

N/A‌

0.53‌

N/A‌

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index

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

—‌

—‌

(5.14‌)

N/A‌

0.71‌

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”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees,

and

how

performance

was

calculated

for

certain

classes.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

12

BlackRock

Low

Duration

Bond

Portfolio

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

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

$

1,000.00‌

$

970.20‌

$

1.98‌

$

1,000.00‌

$

1,023.06‌

$

2.03‌

0.40‌%

Investor

A

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

1,000.00‌

968.90‌

3.21‌

1,000.00‌

1,021.81‌

3.29‌

0.65‌

Investor

A1

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

1,000.00‌

969.70‌

2.47‌

1,000.00‌

1,022.56‌

2.54‌

0.50‌

Investor

C

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

1,000.00‌

965.30‌

6.90‌

1,000.00‌

1,018.05‌

7.08‌

1.40‌

Class

K

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

1,000.00‌

970.40‌

1.73‌

1,000.00‌

1,023.31‌

1.78‌

0.35‌

Class

R

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

1,000.00‌

967.70‌

4.44‌

1,000.00‌

1,020.56‌

4.56‌

0.90‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

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

32.0‌

%

U.S.

Treasury

Obligations

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

25.1‌

Asset-Backed

Securities

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

18.6‌

Non-Agency

Mortgage-Backed

Securities

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

12.1‌

U.S.

Government

Sponsored

Agency

Securities

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

11.0‌

Foreign

Agency

Obligations

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

0.8‌

Foreign

Government

Obligations

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

0.4‌

Floating

Rate

Loan

Interests

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

0.0‌

(b)

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/

Aaa

(d)

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

60.4‌

%

AA/Aa

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

2.6‌

A

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

11.7‌

BBB/Baa

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

17.2‌

BB/Ba

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

2.9‌

B

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

1.5‌

CCC/

Caa

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

0.0‌

(b)

C

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

0.0‌

(b)

D

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

0.0‌

(b)

NR

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

3.7‌

(a)

Excludes

short-term

securities

and

TBA

sale

commitments.

(b)

Represents

less

than

1%

of

the

Fund's

total

investments.

(c)

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.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

The

Benefits

and

Risks

of

Leveraging

13

The

Benefits

and

Risks

of

Leveraging

The

Funds

may

utilize

leverage

to

seek

to

enhance

returns

and

net

asset

value

(“NAV”).

However,

there

is

no

guarantee

that

these

objectives

can

be

achieved

in

all

interest

rate

environments.  

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, each

Fund’s

shareholders

benefit

from

the

incremental

net

income.

The

interest

earned

on

securities

purchased

with

the

proceeds

from

leverage

is

distributed

to each

Fund’s

shareholders,

and

the

value

of

these

portfolio

holdings

is

reflected

in each

Fund’s

per

share

NAV.

However,

in

order

to

benefit

shareholders,

the

return

on

assets

purchased

with

leverage

proceeds

must

exceed

the

ongoing

costs

associated

with

the

leverage.

If

interest

and

other

ongoing

costs

of

leverage

exceed

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

Fund

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.

About

Fund

Performance

2022

BlackRock

Annual

Report

to

Shareholders

14

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.

Service

Shares

(available

only

in

BlackRock

High

Yield

Bond

Portfolio)

are

not

subject

to

any

sales

charge.

These

shares

are

subject

to

a

service

fee

of 

0.25%

per

year

(but

no

distribution

fee)

and

are

only

available

to

certain

eligible

investors.

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of 4.00%

for

all

funds

included

in

this

report,

except

for

BlackRock

Low

Duration

Bond

Portfolio

which

is

subject

to

an

initial

sales

charge

of

2.25%.

These

shares

are

subject

to

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

A1

Shares

(available

only

in

BlackRock

Low

Duration

Bond

Portfolio

)

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of 

1.00%

 and

a

service

fee

of 

0.10

%

per

year

(but

no

distribution

fee).

The

maximum

initial

sales

charge

does

not

apply

to

current

eligible

shareholders

of

Investor

A1

Shares

of

the

Fund.

These

shares

are

only

available

for

dividend

and

capital

gain

reinvestment

by

existing

shareholders

and

for

purchase

by

certain

eligible

employer-sponsored

retirement

plans.

Certain

redemption

of

these

shares

may

be

subject

to

a

CDSC

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

However,

the

CDSC

does

not

apply

to

redemptions

by

certain

employer-sponsored

retirement

plans

or

to

redemptions

of

shares

acquired

through

the

reinvestment

of

dividends

and

capital

gains

by

existing

shareholders.

Investor

C

Shares

 are

subject

to

a 1.00%

CDSC

if

redeemed

within

one

year

of

purchase.

In

addition,

these

shares

are

subject

to

a

distribution

fee

of

0.75

%

per

year

and

a

service

fee

of 

0.25%

per

year.

These

shares

are

generally

available

through

financial

intermediaries.

These

shares

automatically

convert

to

Investor

A

Shares

after

approximately eight

years.

Class

R

Shares

are

not

subject

to

any

sales

charge.

These

shares

are

subject

to

a

distribution

fee

of 

0.25%

per

year

and

a

service

fee

of 

0.25%

per

year.

These

shares

are

available

only

to

certain

employer-sponsored

retirement

plans.

Past

performance

is

not

an

indication

of

future

results.

Financial

markets

have

experienced

extreme

volatility

and

trading

in

many

instruments

has

been

disrupted.

These

circumstances

may

continue

for

an

extended

period

of

time

and

may

continue

to

affect

adversely

the

value

and

liquidity

of each

Fund’s

investments.

As

a

result,

current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Refer

to

blackrock.com 

to

obtain

performance

data

current

to

the

most

recent

month-end.

Performance

results

do

not

reflect

the

deduction

of

taxes

that

a

shareholder

would

pay

on

Fund

distributions

or

the

redemption

of

Fund

shares.

Figures

shown

in

the

performance

table(s) assume

reinvestment

of

all

distributions,

if

any,

at

NAV

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

“Manager”),

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(s)

and/or

reimbursement(s),

each

Fund’s

performance

would

have

been

lower.

With

respect

to

each

Fund’s

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time. With

respect

to

each

Fund’s

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such agreement.

See

the

Notes

to

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

15

Disclosure

of

Expenses

/

Derivative

Financial

Instruments

Shareholders

of

each

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees,

administration

fees, service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

examples shown

(which are

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

through

the

end

of

the

period) 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.

Annualized

expense

ratios

reflect

contractual

and

voluntary

fee

waivers,

if

any.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their

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.

Pursuant

to

Rule

18f-4

under

the

1940

Act,

among

other

things,

the

Funds

must

either

use

derivative

financial

instruments

with

embedded

leverage

in

a

limited

manner

or

comply

with

an

outer

limit

on

fund

leverage

risk

based

on

value-at-risk. 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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

16

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

522

Funding

CLO

Ltd.

(a)(b)

Series

2019-4A,

Class

DR,

(LIBOR

USD

3

Month

+

3.65%),

6.36%,

04/20/30

...

USD

470

$

428,633

Series

2019-5A,

Class

AR,

(3

Month

CME

Term

SOFR

+

1.33%),

3.66%,

04/15/35

250

239,537

ACRES

Commercial

Realty

Ltd.,

Series

2021-FL1,

Class

A,

(LIBOR

USD

1

Month

+

1.20%),

4.14%,

06/15/36

(a)(b)

.........

409

398,830

AGL

CLO

12

Ltd.,

Series

2021-12A,

Class

A1,

(LIBOR

USD

3

Month

+

1.16%),

3.87%,

07/20/34

(a)(b)

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

1,730

1,659,507

AGL

CLO

14

Ltd.,

Series

2021-14A,

Class

A,

(LIBOR

USD

3

Month

+

1.15%),

3.88%,

12/02/34

(a)(b)

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

1,530

1,464,983

AGL

CLO

7

Ltd.

(a)(b)

Series

2020-7A,

Class

AR,

(LIBOR

USD

3

Month

+

1.20%),

3.71%,

07/15/34

...

540

517,894

Series

2020-7A,

Class

DR,

(LIBOR

USD

3

Month

+

3.10%),

5.61%,

07/15/34

...

250

216,230

AGL

Core

CLO

15

Ltd.,

Series

2021-15A,

Class

A1,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

01/20/35

(a)(b)

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

250

240,788

AGL

Core

CLO

2

Ltd.,

Series

2019-2A,

Class

A1,

(LIBOR

USD

3

Month

+

1.39%),

4.10%,

04/20/32

(a)(b)

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

1,320

1,294,440

AGL

Core

CLO

4

Ltd.,

Series

2020-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/33

(a)(b)

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

920

892,123

AGL

Static

CLO

18

Ltd.,

Series

2022-18A,

Class

B,

(3

Month

CME

Term

SOFR

+

2.00%),

3.12%,

04/21/31

(a)(b)

.........

260

248,419

AIG

CLO

LLC,

Series

2018-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.12%),

3.83%,

04/20/32

(a)(b)

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

280

272,832

AIMCO

CLO

(a)(b)

Series

2017-AA,

Class

CR,

(LIBOR

USD

3

Month

+

2.10%),

4.81%,

04/20/34

...

250

224,253

Series

2018-BA,

Class

AR,

(LIBOR

USD

3

Month

+

1.10%),

3.61%,

01/15/32

...

1,290

1,254,613

Ajax

Mortgage

Loan

Trust,

Series

2021-C,

Class

A,

2.12%,

01/25/61

(b)(c)

.........

7,940

7,316,464

Allegro

CLO

II-S

Ltd.,

Series

2014-1RA,

Class

A1,

(LIBOR

USD

3

Month

+

1.08%),

3.81%,

10/21/28

(a)(b)

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

901

889,228

Allegro

CLO

IV

Ltd.,

Series

2016-1A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.55%),

4.06%,

01/15/30

(a)(b)

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

250

239,496

ALM

Ltd.,

Series

2020-1A,

Class

A2,

(LIBOR

USD

3

Month

+

1.85%),

4.36%,

10/15/29

(a)(b)

1,660

1,581,645

AMMC

CLO

22

Ltd.,

Series

2018-22A,

Class

B,

(LIBOR

USD

3

Month

+

1.45%),

4.23%,

04/25/31

(a)(b)

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

250

233,724

AMMC

CLO

XIII

Ltd.,

Series

2013-13A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.05%),

3.83%,

07/24/29

(a)(b)

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

578

571,302

AMSR

Trust,

Series

2020-SFR2,

Class

D,

3.28%,

07/17/37

(b)

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

557

516,847

Anchorage

Capital

CLO

16

Ltd.,

Series

2020-

16A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.20%),

3.94%,

01/19/35

(a)(b)

.........

250

239,120

Anchorage

Capital

CLO

17

Ltd.,

Series

2021-

17A,

Class

A1,

(LIBOR

USD

3

Month

+

1.17%),

3.68%,

07/15/34

(a)(b)

.........

2,495

2,394,550

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Anchorage

Capital

CLO

3-R

Ltd.,

Series

2014-3RA,

Class

B,

(LIBOR

USD

3

Month

+

1.50%),

4.29%,

01/28/31

(a)(b)

.........

USD

1,040

$

1,000,045

Anchorage

Capital

CLO

4-R

Ltd.

(a)(b)

Series

2014-4RA,

Class

A,

(LIBOR

USD

3

Month

+

1.05%),

3.84%,

01/28/31

...

920

904,999

Series

2014-4RA,

Class

C,

(LIBOR

USD

3

Month

+

1.85%),

4.64%,

01/28/31

...

360

331,008

Anchorage

Capital

CLO

5-R

Ltd.

(a)(b)

Series

2014-5RA,

Class

B,

(LIBOR

USD

3

Month

+

1.45%),

3.96%,

01/15/30

...

420

407,566

Series

2014-5RA,

Class

C,

(LIBOR

USD

3

Month

+

1.85%),

4.36%,

01/15/30

...

250

237,673

Anchorage

Capital

CLO

6

Ltd.,

Series

2015-6A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.05%),

3.56%,

07/15/30

(a)(b)

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

1,220

1,200,144

Anchorage

Capital

CLO

7

Ltd.

(a)(b)

Series

2015-7A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.09%),

3.88%,

01/28/31

...

930

913,987

Series

2015-7A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.75%),

4.54%,

01/28/31

...

1,640

1,568,887

Series

2015-7A,

Class

D1R2,

(LIBOR

USD

3

Month

+

3.50%),

6.29%,

01/28/31

..

250

225,681

Anchorage

Capital

CLO

8

Ltd.

(a)(b)

Series

2016-8A,

Class

AR2A,

(LIBOR

USD

3

Month

+

1.20%),

3.97%,

10/27/34

..

570

549,107

Series

2016-8A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.80%),

4.57%,

10/27/34

...

650

612,603

Anchorage

Capital

CLO

Ltd.

(a)(b)

Series

2013-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.25%),

3.71%,

10/13/30

...

670

661,139

Series

2018-1RA,

Class

A1,

(LIBOR

USD

3

Month

+

0.99%),

3.45%,

04/13/31

...

2,240

2,185,261

Anchorage

Capital

Europe

CLO

2

DAC,

Series

2A,

Class

B1R,

(EURIBOR

3

Month

+

1.60%),

1.60%,

04/15/34

(a)(b)

.........

EUR

272

234,406

Antares

CLO

Ltd.,

Series

2021-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.53%),

4.31%,

07/25/33

(a)(b)

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

USD

2,420

2,353,090

Apidos

CLO

XII,

Series

2013-12A,

Class

AR,

(LIBOR

USD

3

Month

+

1.08%),

3.59%,

04/15/31

(a)(b)

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

4,916

4,804,308

Apidos

CLO

XV,

Series

2013-15A,

Class

A1RR,

(LIBOR

USD

3

Month

+

1.01%),

3.72%,

04/20/31

(a)(b)

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

500

489,200

Apidos

CLO

XVIII,

Series

2018-18A,

Class

A1,

(LIBOR

USD

3

Month

+

1.14%),

3.90%,

10/22/30

(a)(b)

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

350

340,277

Apidos

CLO

XX,

Series

2015-20A,

Class

A1RA,

(LIBOR

USD

3

Month

+

1.10%),

3.84%,

07/16/31

(a)(b)

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

250

242,801

Apidos

CLO

XXII

(a)(b)

Series

2015-22A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.50%),

4.21%,

04/20/31

...

250

236,982

Series

2015-22A,

Class

CR,

(LIBOR

USD

3

Month

+

2.95%),

5.66%,

04/20/31

...

250

224,399

Aqua

Finance

Trust,

Series

2021-A,

Class

A,

1.54%,

07/17/46

(b)

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

107

96,715

Arbor

Realty

Commercial

Real

Estate

Notes

Ltd.

(a)(b)

Series

2022-FL1,

Class

A,

(SOFR

30

Day

Average

+

1.45%),

3.74%,

01/15/37

..

10,000

9,808,612

Series

2022-FL2,

Class

A,

(1

Month

CME

Term

SOFR

+

1.85%),

4.70%,

05/15/37

1,350

1,320,919

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

17

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Ares

European

CLO

XII

DAC,

Series

12A,

Class

B1R,

(EURIBOR

3

Month

+

1.70%),

1.75%,

04/20/32

(a)(b)

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

EUR

297

$

263,527

Ares

LII

CLO

Ltd.,

Series

2019-52A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.05%),

3.81%,

04/22/31

(a)(b)

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

USD

1,770

1,721,755

Ares

LIX

CLO

Ltd.,

Series

2021-59A,

Class

A,

(LIBOR

USD

3

Month

+

1.03%),

3.81%,

04/25/34

(a)(b)

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

250

236,725

Ares

LVI

CLO

Ltd.,

Series

2020-56A,

Class

AR,

(LIBOR

USD

3

Month

+

1.16%),

3.94%,

10/25/34

(a)(b)

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

410

394,532

Ares

XLVIII

CLO

Ltd.,

Series

2018-48A,

Class

B,

(LIBOR

USD

3

Month

+

1.58%),

4.29%,

07/20/30

(a)(b)

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

250

237,500

Ares

XXXVII

CLO

Ltd.,

Series

2015-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.17%),

3.68%,

10/15/30

(a)(b)

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

310

305,083

Armada

Euro

CLO

III

DAC,

Series

3A,

Class

DR,

(EURIBOR

3

Month

+

3.30%),

3.30%,

07/15/31

(a)(b)

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

EUR

287

251,709

Assurant

CLO

I

Ltd.,

Series

2017-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.15%),

4.86%,

10/20/34

(a)(b)

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

USD

330

294,563

Assurant

CLO

Ltd.,

Series

2018-2A,

Class

A,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

04/20/31

(a)(b)

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

250

243,276

Atrium

IX,

Series

9A,

Class

AR2,

(LIBOR

USD

3

Month

+

0.99%),

4.03%,

05/28/30

(a)(b)

..

989

972,138

Avoca

CLO

XVIII

DAC,

Series

18X,

Class

C,

(EURIBOR

3

Month

+

1.75%),

1.75%,

04/15/31

(a)(d)

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

EUR

100

86,553

Avoca

CLO

XXII

DAC,

Series

22X,

Class

B1,

(EURIBOR

3

Month

+

1.30%),

1.30%,

04/15/35

(a)(d)

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

200

171,120

Babson

CLO

Ltd.,

Series

2015-IA,

Class

BR,

(LIBOR

USD

3

Month

+

1.40%),

4.11%,

01/20/31

(a)(b)

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

USD

250

235,521

Bain

Capital

Credit

CLO,

Series

2018-2A,

Class

B,

(LIBOR

USD

3

Month

+

1.60%),

4.34%,

07/19/31

(a)(b)

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

250

234,063

Bain

Capital

Credit

CLO

Ltd.

(a)(b)

Series

2017-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.50%),

4.21%,

07/20/30

...

250

238,012

Series

2018-2A,

Class

A1,

(LIBOR

USD

3

Month

+

1.08%),

3.82%,

07/19/31

...

330

322,989

Series

2021-3A,

Class

D,

(LIBOR

USD

3

Month

+

3.10%),

5.88%,

07/24/34

...

250

220,014

Bardot

CLO

Ltd.,

Series

2019-2A,

Class

DR,

(LIBOR

USD

3

Month

+

3.00%),

5.76%,

10/22/32

(a)(b)

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

250

222,144

Barings

CLO

Ltd.

(a)(b)

Series

2018-3A,

Class

A1,

(LIBOR

USD

3

Month

+

0.95%),

3.66%,

07/20/29

...

174

171,331

Series

2019-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/31

...

250

243,655

Battalion

CLO

18

Ltd.,

Series

2020-18A,

Class

BR,

(LIBOR

USD

3

Month

+

1.75%),

4.26%,

10/15/36

(a)(b)

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

375

350,360

Battalion

CLO

VIII

Ltd.

(a)(b)

Series

2015-8A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.07%),

3.81%,

07/18/30

...

1,332

1,304,541

Series

2015-8A,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.55%),

4.29%,

07/18/30

...

666

629,053

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Battalion

CLO

X

Ltd.

(a)(b)

Series

2016-10A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.17%),

3.95%,

01/25/35

..

USD

5,370

$

5,165,744

Series

2016-10A,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.55%),

4.33%,

01/25/35

..

630

588,657

Battalion

CLO

XI

Ltd.,

Series

2017-11A,

Class

BR,

(LIBOR

USD

3

Month

+

1.72%),

4.50%,

04/24/34

(a)(b)

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

250

232,287

Battalion

CLO

XX

Ltd.,

Series

2021-20A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

3.69%,

07/15/34

(a)(b)

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

1,000

960,086

BDS

LLC,

Series

2022-FL11,

Class

ATS,

(1

Month

CME

Term

SOFR

+

1.80%),

4.82%,

03/19/39

(a)(b)

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

2,144

2,087,508

BDS

Ltd.,

Series

2021-FL7,

Class

A,

(LIBOR

USD

1

Month

+

1.07%),

4.06%,

06/16/36

(a)(b)

9,610

9,253,531

Benefit

Street

Partners

CLO

II

Ltd.,

Series

2013-IIA,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.45%),

3.96%,

07/15/29

(a)(b)

........

1,250

1,213,836

Benefit

Street

Partners

CLO

III

Ltd.,

Series

2013-IIIA,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

07/20/29

(a)(b)

...

400

388,537

Benefit

Street

Partners

CLO

V-B

Ltd.,

Series

2018-5BA,

Class

A1A,

(LIBOR

USD

3

Month

+

1.09%),

3.80%,

04/20/31

(a)(b)

........

960

939,839

Benefit

Street

Partners

CLO

XII

Ltd.,

Series

2017-12A,

Class

B,

(LIBOR

USD

3

Month

+

2.00%),

4.51%,

10/15/30

(a)(b)

.........

310

286,858

BHG

Securitization

Trust

(b)

Series

2022-A,

Class

C,

3.08%,

02/20/35

1,200

987,069

Series

2022-C,

Class

A,

5.32%,

10/17/35

994

993,973

Series

2022-C,

Class

B,

5.93%,

10/17/35

302

298,549

Birch

Grove

CLO

2

Ltd.,

Series

2021-2A,

Class

A1,

(LIBOR

USD

3

Month

+

1.26%),

4.00%,

10/19/34

(a)(b)

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

250

238,343

Birch

Grove

CLO

Ltd.

(a)(b)

Series

19A,

Class

CR,

(LIBOR

USD

3

Month

+

2.20%),

5.49%,

06/15/31

...

250

233,086

Series

19A,

Class

DR,

(LIBOR

USD

3

Month

+

3.35%),

6.64%,

06/15/31

...

250

238,941

BlueMountain

CLO

Ltd.

(a)(b)

Series

2013-2A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.18%),

3.94%,

10/22/30

...

1,735

1,704,471

Series

2015-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.00%),

3.71%,

04/20/31

...

250

243,486

Series

2016-2A,

Class

BR2,

(LIBOR

USD

3

Month

+

2.25%),

5.23%,

08/20/32

...

300

275,263

BlueMountain

CLO

XXII

Ltd.,

Series

2018-22A,

Class

B,

(LIBOR

USD

3

Month

+

1.50%),

4.01%,

07/15/31

(a)(b)

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

870

825,381

BlueMountain

CLO

XXIII

Ltd.,

Series

2018-23A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

4.41%,

10/20/31

(a)(b)

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

250

233,841

BlueMountain

CLO

XXIX

Ltd.,

Series

2020-

29A,

Class

BR,

(LIBOR

USD

3

Month

+

1.75%),

4.53%,

07/25/34

(a)(b)

.........

250

235,271

BlueMountain

CLO

XXVIII

Ltd.,

Series

2021-

28A,

Class

A,

(LIBOR

USD

3

Month

+

1.26%),

3.77%,

04/15/34

(a)(b)

.........

130

125,080

BlueMountain

Euro

CLO

DAC,

Series

2021-2A,

Class

B1,

(EURIBOR

3

Month

+

1.75%),

1.75%,

10/15/35

(a)(b)

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

EUR

660

563,381

BlueMountain

Fuji

EUR

CLO

V

DAC,

Series

5X,

Class

C,

(EURIBOR

3

Month

+

2.45%),

2.45%,

01/15/33

(a)(d)

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

340

293,006

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

18

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

BPCRE

Ltd.,

Series

2022-FL2,

Class

A,

(1

Month

CME

Term

SOFR

+

2.40%),

5.42%,

01/16/37

(a)(b)

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

USD

829

$

813,323

Bridge

Street

CLO

II

Ltd.,

Series

2021-1A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.23%),

3.94%,

07/20/34

(a)(b)

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

250

239,554

Bristol

Park

CLO

Ltd.,

Series

2016-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.45%),

3.96%,

04/15/29

(a)(b)

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

250

238,941

BSPRT

Issuer

Ltd.,

Series

2022-FL8,

Class

A,

(SOFR

30

Day

Average

+

1.50%),

3.79%,

02/15/37

(a)(b)

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

9,260

8,931,141

Buttermilk

Park

CLO

Ltd.,

Series

2018-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.10%),

3.61%,

10/15/31

(a)(b)

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

250

242,839

Canyon

Capital

CLO

Ltd.,

Series

2019-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.10%),

3.61%,

04/15/32

(a)(b)

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

610

594,940

Canyon

CLO

Ltd.,

Series

2020-3A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

4.21%,

01/15/34

(a)(b)

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

350

330,365

Carlyle

CLO

Ltd.,

Series

C17A,

Class

A1AR,

(LIBOR

USD

3

Month

+

1.03%),

3.81%,

04/30/31

(a)(b)

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

1,860

1,820,908

Carlyle

Global

Market

Strategies

CLO

Ltd.,

Series

2014-1A,

Class

A1R2,

(LIBOR

USD

3

Month

+

0.97%),

3.71%,

04/17/31

(a)(b)

...

798

773,648

Carlyle

US

CLO

Ltd.

(a)(b)

Series

2016-4A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.45%),

4.16%,

10/20/27

...

250

241,300

Series

2018-1A,

Class

A2,

(LIBOR

USD

3

Month

+

1.50%),

4.21%,

04/20/31

...

250

234,050

Series

2018-4A,

Class

B,

(LIBOR

USD

3

Month

+

2.07%),

4.78%,

01/20/31

...

250

230,436

Series

2021-6A,

Class

A1,

(LIBOR

USD

3

Month

+

1.16%),

3.67%,

07/15/34

...

800

767,243

Series

2021-10A,

Class

A,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

10/20/34

...

830

794,255

CarVal

CLO

II

Ltd.,

Series

2019-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.20%),

5.91%,

04/20/32

(a)(b)

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

1,130

1,001,317

CBAM

Ltd.,

Series

2017-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.25%),

3.96%,

07/20/30

(a)(b)

1,600

1,576,846

Cedar

Funding

II

CLO

Ltd.

(a)(b)

Series

2013-1A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.08%),

3.79%,

04/20/34

...

710

677,351

Series

2013-1A,

Class

BRR,

(LIBOR

USD

3

Month

+

1.35%),

4.06%,

04/20/34

...

680

632,415

Cedar

Funding

VI

CLO

Ltd.,

Series

2016-6A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.05%),

3.76%,

04/20/34

(a)(b)

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

3,930

3,752,640

Cedar

Funding

XI

CLO

Ltd.,

Series

2019-11A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.35%),

4.39%,

05/29/32

(a)(b)

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

280

268,459

CIFC

Funding

Ltd.

(a)(b)

Series

2013-4A,

Class

BRR,

(LIBOR

USD

3

Month

+

1.60%),

4.37%,

04/27/31

...

250

236,765

Series

2014-2RA,

Class

B1,

(LIBOR

USD

3

Month

+

2.80%),

5.58%,

04/24/30

...

250

228,859

Series

2015-3A,

Class

BR,

(LIBOR

USD

3

Month

+

1.15%),

3.89%,

04/19/29

...

330

317,258

Series

2017-1A,

Class

AR,

(LIBOR

USD

3

Month

+

1.01%),

3.74%,

04/23/29

...

1,128

1,110,425

Series

2017-1A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

4.43%,

04/23/29

...

340

329,998

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2018-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.00%),

3.74%,

04/18/31

...

USD

2,380

$

2,320,986

Series

2019-5A,

Class

A1R1,

(LIBOR

USD

3

Month

+

1.14%),

3.65%,

01/15/35

...

250

238,480

Series

2020-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

07/15/36

...

300

287,370

Series

2020-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.16%,

07/15/36

...

740

697,600

Series

2020-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.10%),

5.61%,

07/15/36

...

380

336,929

Series

2020-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.13%),

3.84%,

10/20/34

...

1,350

1,289,568

Series

2021-4A,

Class

A,

(LIBOR

USD

3

Month

+

1.05%),

3.56%,

07/15/33

...

1,450

1,410,490

Series

2021-5A,

Class

A,

(LIBOR

USD

3

Month

+

1.14%),

3.65%,

07/15/34

...

330

315,936

Clontarf

Park

CLO

DAC,

Series

1X,

Class

CE,

(EURIBOR

3

Month

+

3.05%),

3.30%,

08/05/30

(a)(d)

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

EUR

390

351,080

Cloud

Pass-Through

Trust,

Series

2019-1A,

Class

CLOU,

3.55%,

12/05/22

(a)(b)

......

USD

2

1,861

College

Avenue

Student

Loans

LLC

(b)

Series

2021-B,

Class

B,

2.42%,

06/25/52

250

214,222

Series

2021-B,

Class

C,

2.72%,

06/25/52

100

85,035

Series

2021-C,

Class

D,

4.11%,

07/26/55

100

83,716

Crown

Point

CLO

10

Ltd.,

Series

2021-10A,

Class

A,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

07/20/34

(a)(b)

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

2,100

2,013,291

CVC

Cordatus

Loan

Fund

IV

DAC,

Series

4X,

Class

BR1,

(EURIBOR

3

Month

+

1.30%),

1.69%,

02/22/34

(a)(d)

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

EUR

260

226,352

Deer

Creek

CLO

Ltd.,

Series

2017-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

3.89%,

10/20/30

(a)(b)

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

USD

1,500

1,472,857

Diameter

Capital

CLO

1

Ltd.,

Series

2021-1A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.24%),

3.75%,

07/15/36

(a)(b)

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

500

480,464

Diameter

Capital

CLO

3

Ltd.,

Series

2022-3A,

Class

A1A,

(3

Month

CME

Term

SOFR

+

1.39%),

3.72%,

04/15/37

(a)(b)

.........

250

240,206

Dryden

43

Senior

Loan

Fund,

Series

2016-43A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

04/20/34

(a)(b)

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

1,180

1,135,655

Dryden

45

Senior

Loan

Fund,

Series

2016-45A,

Class

BR,

(LIBOR

USD

3

Month

+

1.70%),

4.21%,

10/15/30

(a)(b)

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

630

592,120

Dryden

50

Senior

Loan

Fund,

Series

2017-50A,

Class

B,

(LIBOR

USD

3

Month

+

1.65%),

4.16%,

07/15/30

(a)(b)

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

250

237,219

Dryden

53

CLO

Ltd.,

Series

2017-53A,

Class

A,

(LIBOR

USD

3

Month

+

1.12%),

3.63%,

01/15/31

(a)(b)

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

4,900

4,777,419

Dryden

65

CLO

Ltd.,

Series

2018-65A,

Class

B,

(LIBOR

USD

3

Month

+

1.60%),

4.34%,

07/18/30

(a)(b)

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

250

236,010

Dryden

76

CLO

Ltd.,

Series

2019-76A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

10/20/34

(a)(b)

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

250

239,108

Dryden

77

CLO

Ltd.,

Series

2020-77A,

Class

AR,

(LIBOR

USD

3

Month

+

1.12%),

4.10%,

05/20/34

(a)(b)

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

810

779,773

Dryden

87

CLO

Ltd.,

Series

2021-87A,

Class

A1,

(LIBOR

USD

3

Month

+

1.10%),

4.08%,

05/20/34

(a)(b)

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

520

498,232

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

19

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Dryden

XXVI

Senior

Loan

Fund,

Series

2013-

26A,

Class

AR,

(LIBOR

USD

3

Month

+

0.90%),

3.41%,

04/15/29

(a)(b)

.........

USD

301

$

295,418

Dryden

XXVIII

Senior

Loan

Fund,

Series

2013-

28A,

Class

A1LR,

(LIBOR

USD

3

Month

+

1.20%),

4.11%,

08/15/30

(a)(b)

.........

1,660

1,633,558

EDvestinU

Private

Education

Loan

Issue

No.

4

LLC,

Series

2022-A,

Class

A,

5.25%,

11/25/40

(b)

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

635

619,287

Elmwood

CLO

II

Ltd.

(a)(b)

Series

2019-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

04/20/34

...

1,000

965,000

Series

2019-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

04/20/34

...

250

237,016

Elmwood

CLO

V

Ltd.

(a)(b)

Series

2020-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

10/20/34

...

620

598,073

Series

2020-2A,

Class

CR,

(LIBOR

USD

3

Month

+

2.00%),

4.71%,

10/20/34

...

541

485,838

Elmwood

CLO

X

Ltd.

(a)(b)

Series

2021-3A,

Class

A,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

10/20/34

...

1,620

1,562,833

Series

2021-3A,

Class

C,

(LIBOR

USD

3

Month

+

1.95%),

4.66%,

10/20/34

...

250

228,104

Elmwood

CLO

XII

Ltd.,

Series

2021-5A,

Class

A,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

01/20/35

(a)(b)

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

250

238,960

Fidelity

Grand

Harbour

CLO

DAC,

Series

2021-

1A,

Class

D,

(EURIBOR

3

Month

+

3.60%),

3.60%,

10/15/34

(a)(b)

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

EUR

250

207,406

Flatiron

CLO

21

Ltd.,

Series

2021-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.11%),

3.85%,

07/19/34

(a)(b)

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

USD

3,150

3,016,414

FS

Rialto,

Series

2021-FL3,

Class

A,

(LIBOR

USD

1

Month

+

1.25%),

4.19%,

11/16/36

(a)(b)

3,097

2,960,612

FS

Rialto

Issuer

LLC

(a)(b)

Series

2022-FL4,

Class

A,

(SOFR

30

Day

Average

+

1.90%),

4.18%,

01/19/39

..

3,787

3,698,754

Series

2022-FL5,

Class

A,

(1

Month

CME

Term

SOFR

+

2.30%),

5.32%,

06/19/37

1,581

1,553,448

Series

2022-FL6,

Class

A,

(1

Month

CME

Term

SOFR

+

2.58%),

4.58%,

08/17/37

1,012

1,001,519

Galaxy

XV

CLO

Ltd.,

Series

2013-15A,

Class

ARR,

(LIBOR

USD

3

Month

+

0.97%),

3.48%,

10/15/30

(a)(b)

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

400

392,794

Galaxy

XVIII

CLO

Ltd.,

Series

2018-28A,

Class

A1,

(LIBOR

USD

3

Month

+

1.10%),

3.61%,

07/15/31

(a)(b)

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

280

272,354

Galaxy

XXII

CLO

Ltd.,

Series

2016-22A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.20%),

3.94%,

04/16/34

(a)(b)

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

910

875,624

Generate

CLO

2

Ltd.,

Series

2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.15%),

3.91%,

01/22/31

(a)(b)

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

1,250

1,222,576

Generate

CLO

3

Ltd.

(a)(b)

Series

3A,

Class

AR,

(LIBOR

USD

3

Month

+

1.25%),

3.96%,

10/20/29

........

503

496,084

Series

3A,

Class

BR,

(LIBOR

USD

3

Month

+

1.75%),

4.46%,

10/20/29

........

930

891,950

Generate

CLO

4

Ltd.,

Series

4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.09%),

3.80%,

04/20/32

(a)(b)

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

1,050

1,024,891

Generate

CLO

6

Ltd.,

Series

6A,

Class

CR,

(LIBOR

USD

3

Month

+

2.45%),

5.21%,

01/22/35

(a)(b)

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

250

227,451

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Gilbert

Park

CLO

Ltd.,

Series

2017-1A,

Class

C,

(LIBOR

USD

3

Month

+

1.95%),

4.46%,

10/15/30

(a)(b)

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

USD

640

$

596,194

GoldenTree

Loan

Management

US

CLO

3

Ltd.,

Series

2018-3A,

Class

B1,

(LIBOR

USD

3

Month

+

1.55%),

4.26%,

04/20/30

(a)(b)

...

250

239,646

GoldenTree

Loan

Opportunities

IX

Ltd.

(a)(b)

Series

2014-9A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.11%),

3.92%,

10/29/29

...

403

397,589

Series

2014-9A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.60%),

4.41%,

10/29/29

...

500

485,081

GoldenTree

Loan

Opportunities

X

Ltd.,

Series

2015-10A,

Class

DR,

(LIBOR

USD

3

Month

+

3.05%),

5.76%,

07/20/31

(a)(b)

........

250

224,603

GoldentTree

Loan

Management

US

CLO

1

Ltd.,

Series

2021-11A,

Class

A,

(LIBOR

USD

3

Month

+

1.13%),

3.84%,

10/20/34

(a)(b)

...

1,050

1,002,977

Golub

Capital

BDC

3

CLO

1

LLC,

Series

2021-1A,

Class

C1,

(LIBOR

USD

3

Month

+

2.80%),

5.31%,

04/15/33

(a)(b)

.........

250

229,468

Golub

Capital

Partners

CLO

55B

Ltd.,

Series

2021-55A,

Class

A,

(LIBOR

USD

3

Month

+

1.20%),

3.91%,

07/20/34

(a)(b)

.........

250

239,498

Golub

Capital

Partners

CLO

58B

Ltd.,

Series

2021-58A,

Class

A1,

(LIBOR

USD

3

Month

+

1.18%),

3.96%,

01/25/35

(a)(b)

........

310

298,072

Great

Lakes

CLO

Ltd.,

Series

2019-1A,

Class

AR,

(LIBOR

USD

3

Month

+

1.56%),

4.07%,

07/15/31

(a)(b)

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

970

934,436

Great

Lakes

CLO

V

Ltd.,

Series

2021-5A,

Class

A,

(LIBOR

USD

3

Month

+

1.70%),

4.21%,

04/15/33

(a)(b)

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

540

517,628

Grippen

Park

CLO

Ltd.

(a)(b)

Series

2017-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.26%),

3.97%,

01/20/30

...

247

243,722

Series

2017-1A,

Class

D,

(LIBOR

USD

3

Month

+

3.30%),

6.01%,

01/20/30

...

250

231,713

GSAA

Home

Equity

Trust,

Series

2006-5,

Class

2A1,

(LIBOR

USD

1

Month

+

0.14%),

3.22%,

03/25/36

(a)

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

460

175,180

Gulf

Stream

Meridian

1

Ltd.,

Series

2020-IA,

Class

A1,

(LIBOR

USD

3

Month

+

1.37%),

3.88%,

04/15/33

(a)(b)

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

1,180

1,145,052

Gulf

Stream

Meridian

3

Ltd.,

Series

2021-IIIA,

Class

A1,

(LIBOR

USD

3

Month

+

1.32%),

3.83%,

04/15/34

(a)(b)

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

250

241,516

Gulf

Stream

Meridian

4

Ltd.,

Series

2021-4A,

Class

A1,

(LIBOR

USD

3

Month

+

1.20%),

3.71%,

07/15/34

(a)(b)

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

2,580

2,480,960

Gulf

Stream

Meridian

5

Ltd.,

Series

2021-5A,

Class

A2,

(LIBOR

USD

3

Month

+

1.80%),

4.31%,

07/15/34

(a)(b)

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

280

267,097

Gulf

Stream

Meridian

7

Ltd.,

Series

2022-7A,

Class

A1,

(3

Month

CME

Term

SOFR

+

1.36%),

3.69%,

07/15/35

(a)(b)

.........

360

346,222

Henley

CLO

IV

DAC,

Series

4X,

Class

B1,

(EURIBOR

3

Month

+

1.35%),

1.50%,

04/25/34

(a)(d)

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

EUR

130

110,980

Highbridge

Loan

Management,

Series

3A-2014,

Class

A1R,

(LIBOR

USD

3

Month

+

1.18%),

3.92%,

07/18/29

(a)(b)

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

USD

680

670,052

Highbridge

Loan

Management

Ltd.,

Series

12A-18,

Class

A1B,

(LIBOR

USD

3

Month

+

1.25%),

3.99%,

07/18/31

(a)(b)

.........

250

239,601

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

20

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

HPS

Loan

Management

Ltd.

(a)(b)

Series

10A-16,

Class

A1RR,

(LIBOR

USD

3

Month

+

1.14%),

3.85%,

04/20/34

...

USD

1,540

$

1,475,786

Series

6A-2015,

Class

A1R,

(LIBOR

USD

3

Month

+

1.00%),

3.83%,

02/05/31

...

3,009

2,943,948

ICG

US

CLO

Ltd.,

Series

2015-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.14%),

3.88%,

10/19/28

(a)(b)

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

587

579,072

Jamestown

CLO

XII

Ltd.,

Series

2019-1A,

Class

A2,

(LIBOR

USD

3

Month

+

2.15%),

4.86%,

04/20/32

(a)(b)

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

360

337,165

KKR

CLO

10

Ltd.,

Series

10,

Class

BR,

(LIBOR

USD

3

Month

+

1.70%),

4.99%,

09/15/29

(a)(b)

250

243,110

KREF

Ltd.,

Series

2022-FL3,

Class

A,

(1

Month

CME

Term

SOFR

+

1.45%),

4.47%,

02/17/39

(a)(b)

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

10,000

9,610,000

LCM

29

Ltd.,

Series

29A,

Class

AR,

(LIBOR

USD

3

Month

+

1.07%),

3.58%,

04/15/31

(a)(b)

250

243,406

LCM

XIV

LP,

Series

14A,

Class

AR,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

07/20/31

(a)(b)

250

242,815

LCM

XX

LP,

Series

20A,

Class

BR,

(LIBOR

USD

3

Month

+

1.55%),

4.26%,

10/20/27

(a)(b)

250

244,033

LCM

XXI

LP,

Series

21A,

Class

AR,

(LIBOR

USD

3

Month

+

0.88%),

3.59%,

04/20/28

(a)(b)

258

254,720

Lendmark

Funding

Trust

(b)

Series

2021-2A,

Class

C,

3.09%,

04/20/32

380

288,272

Series

2022-1A,

Class

A,

5.12%,

07/20/32

1,556

1,501,098

LoanCore

Issuer

Ltd.

(a)(b)

Series

2018-CRE1,

Class

A,

(LIBOR

USD

1

Month

+

1.13%),

3.95%,

05/15/28

...

7

7,198

Series

2022-CRE7,

Class

A,

(SOFR

30

Day

Average

+

1.55%),

3.83%,

01/17/37

..

3,573

3,462,058

Logan

CLO

I

Ltd.,

Series

2021-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.16%),

3.87%,

07/20/34

(a)(b)

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

1,010

967,489

Long

Point

Park

CLO

Ltd.,

Series

2017-1A,

Class

A2,

(LIBOR

USD

3

Month

+

1.38%),

4.12%,

01/17/30

(a)(b)

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

250

235,633

Longfellow

Place

CLO

Ltd.,

Series

2013-1A,

Class

BR3,

(LIBOR

USD

3

Month

+

1.75%),

4.26%,

04/15/29

(a)(b)

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

250

244,489

Madison

Park

Euro

Funding

XIV

DAC,

Series

14A,

Class

DR,

(EURIBOR

3

Month

+

3.60%),

3.60%,

07/15/32

(a)(b)

.........

EUR

250

216,783

Madison

Park

Funding

XI

Ltd.,

Series

2013-

11A,

Class

AR2,

(LIBOR

USD

3

Month

+

0.90%),

3.68%,

07/23/29

(a)(b)

.........

USD

2,166

2,126,992

Madison

Park

Funding

XIII

Ltd.

(a)(b)

Series

2014-13A,

Class

AR2,

(LIBOR

USD

3

Month

+

0.95%),

3.69%,

04/19/30

...

1,036

1,020,197

Series

2014-13A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.50%),

4.24%,

04/19/30

..

960

932,474

Madison

Park

Funding

XIX

Ltd.,

Series

2015-

19A,

Class

A1R2,

(LIBOR

USD

3

Month

+

0.92%),

3.68%,

01/22/28

(a)(b)

.........

1,136

1,115,414

Madison

Park

Funding

XLI

Ltd.,

Series

12A,

Class

AR,

(LIBOR

USD

3

Month

+

0.83%),

3.59%,

04/22/27

(a)(b)

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

320

315,023

Madison

Park

Funding

XLII

Ltd.,

Series

13A,

Class

C,

(LIBOR

USD

3

Month

+

1.80%),

4.58%,

11/21/30

(a)(b)

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

250

232,063

Madison

Park

Funding

XLV

Ltd.,

Series

2020-

45A,

Class

AR,

(LIBOR

USD

3

Month

+

1.12%),

3.63%,

07/15/34

(a)(b)

.........

1,050

1,015,507

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Madison

Park

Funding

XXIII

Ltd.

(a)(b)

Series

2017-23A,

Class

BR,

(LIBOR

USD

3

Month

+

1.55%),

4.32%,

07/27/31

...

USD

250

$

241,565

Series

2017-23A,

Class

CR,

(LIBOR

USD

3

Month

+

2.00%),

4.77%,

07/27/31

...

250

233,861

Madison

Park

Funding

XXIV

Ltd.,

Series

2016-

24A,

Class

BR,

(3

Month

CME

Term

SOFR

+

2.01%),

4.49%,

10/20/29

(a)(b)

........

250

242,074

Madison

Park

Funding

XXV

Ltd.,

Series

2017-

25A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.65%),

4.43%,

04/25/29

(a)(b)

.........

320

309,068

Madison

Park

Funding

XXVI

Ltd.,

Series

2017-

26A,

Class

AR,

(LIBOR

USD

3

Month

+

1.20%),

4.01%,

07/29/30

(a)(b)

.........

1,665

1,645,152

Madison

Park

Funding

XXVII

Ltd.,

Series

2018-

27A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.03%),

3.74%,

04/20/30

(a)(b)

.........

250

244,189

Madison

Park

Funding

XXXIII

Ltd.

(a)(b)

Series

2019-33A,

Class

AR,

(3

Month

CME

Term

SOFR

+

1.29%),

3.62%,

10/15/32

290

280,885

Series

2019-33A,

Class

BR,

(3

Month

CME

Term

SOFR

+

1.80%),

4.13%,

10/15/32

280

266,374

Madison

Park

Funding

XXXV

Ltd.,

Series

2019-35A,

Class

A1R,

(LIBOR

USD

3

Month

+

0.99%),

3.70%,

04/20/32

(a)(b)

........

730

711,226

Madison

Park

Funding

XXXVII

Ltd.,

Series

2019-37A,

Class

AR,

(LIBOR

USD

3

Month

+

1.07%),

3.58%,

07/15/33

(a)(b)

........

410

397,116

Madison

Park

Funding

XXXVIII

Ltd.,

Series

2021-38A,

Class

A,

(LIBOR

USD

3

Month

+

1.12%),

3.86%,

07/17/34

(a)(b)

.........

1,130

1,087,856

Man

GLG

Euro

CLO,

Series

6A,

Class

DR,

(EURIBOR

3

Month

+

3.50%),

3.50%,

10/15/32

(a)(b)

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

EUR

320

279,000

Marble

Point

CLO

XI

Ltd.,

Series

2017-2A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

3.92%,

12/18/30

(a)(b)

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

USD

430

420,961

Mariner

CLO

LLC

(a)(b)

Series

2016-3A,

Class

AR2,

(LIBOR

USD

3

Month

+

0.99%),

3.77%,

07/23/29

...

317

311,293

Series

2016-3A,

Class

CR2,

(LIBOR

USD

3

Month

+

2.05%),

4.83%,

07/23/29

...

1,125

1,056,421

Mariner

Finance

Issuance

Trust

(b)

Series

2020-AA,

Class

B,

3.21%,

08/21/34

260

239,753

Series

2020-AA,

Class

C,

4.10%,

08/21/34

330

301,206

Series

2021-BA,

Class

D,

3.42%,

11/20/36

220

183,605

MF1

LLC

(a)(b)

Series

2022-FL9,

Class

A,

(1

Month

CME

Term

SOFR

+

2.15%),

5.17%,

06/19/37

857

840,033

Series

2022-FL10,

Class

A,

(1

Month

CME

Term

SOFR

+

2.64%),

4.92%,

09/17/37

668

661,018

MidOcean

Credit

CLO

III,

Series

2014-3A,

Class

A3A2,

(LIBOR

USD

3

Month

+

0.97%),

3.70%,

04/21/31

(a)(b)

.........

472

461,828

MP

CLO

III

Ltd.,

Series

2013-1A,

Class

AR,

(LIBOR

USD

3

Month

+

1.25%),

3.96%,

10/20/30

(a)(b)

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

830

813,955

MP

CLO

VIII

Ltd.,

Series

2015-2A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.20%),

3.99%,

04/28/34

(a)(b)

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

1,420

1,358,160

Navient

Private

Education

Loan

Trust,

Series

2020-A,

Class

A2B,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

11/15/68

(a)(b)

.........

398

392,035

Navient

Private

Education

Refi

Loan

Trust

(b)

Series

2021-DA,

Class

B,

2.61%,

04/15/60

370

327,960

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

21

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2021-DA,

Class

C,

3.48%,

04/15/60

USD

950

$

797,000

Series

2021-DA,

Class

D,

4.00%,

04/15/60

300

253,377

Neuberger

Berman

CLO

XVI-S

Ltd.,

Series

2017-16SA,

Class

AR,

(LIBOR

USD

3

Month

+

1.04%),

3.55%,

04/15/34

(a)(b)

...

570

545,938

Neuberger

Berman

CLO

XX

Ltd.,

Series

2015-

20A,

Class

BRR,

(LIBOR

USD

3

Month

+

1.65%),

4.16%,

07/15/34

(a)(b)

.........

250

235,185

Neuberger

Berman

CLO

XXII

Ltd.,

Series

2016-22A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.39%,

10/17/30

(a)(b)

........

400

379,389

Neuberger

Berman

Loan

Advisers

CLO

26

Ltd.

(a)(b)

Series

2017-26A,

Class

AR,

(LIBOR

USD

3

Month

+

0.92%),

3.66%,

10/18/30

...

1,430

1,400,378

Series

2017-26A,

Class

BR,

(LIBOR

USD

3

Month

+

1.40%),

4.14%,

10/18/30

...

250

238,092

Neuberger

Berman

Loan

Advisers

CLO

34

Ltd.,

Series

2019-34A,

Class

BR,

(3

Month

CME

Term

SOFR

+

1.75%),

4.23%,

01/20/35

(a)(b)

250

237,077

Neuberger

Berman

Loan

Advisers

CLO

37

Ltd.,

Series

2020-37A,

Class

BR,

(LIBOR

USD

3

Month

+

1.45%),

4.16%,

07/20/31

(a)(b)

...

250

237,230

Neuberger

Berman

Loan

Advisers

CLO

42

Ltd.,

Series

2021-42A,

Class

A,

(LIBOR

USD

3

Month

+

1.10%),

3.84%,

07/16/35

(a)(b)

...

880

842,738

OAK

Hill

European

Credit

Partners

V

DAC,

Series

2016-5A,

Class

BR,

(EURIBOR

3

Month

+

1.90%),

1.94%,

01/21/35

(a)(b)

...

EUR

250

215,303

OCP

CLO

Ltd.

(a)(b)

Series

2013-4A,

Class

BRR,

(LIBOR

USD

3

Month

+

1.90%),

4.68%,

04/24/29

...

USD

945

903,140

Series

2014-5A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.08%),

3.85%,

04/26/31

...

140

137,014

Series

2017-14A,

Class

B,

(LIBOR

USD

3

Month

+

1.95%),

4.93%,

11/20/30

...

250

232,360

Series

2019-16A,

Class

AR,

(LIBOR

USD

3

Month

+

1.00%),

3.43%,

04/10/33

...

280

272,428

Series

2020-18A,

Class

AR,

(LIBOR

USD

3

Month

+

1.09%),

3.80%,

07/20/32

...

320

309,195

Series

2020-19A,

Class

BR,

(LIBOR

USD

3

Month

+

1.70%),

4.41%,

10/20/34

...

250

234,511

Series

2021-22A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

3.89%,

12/02/34

...

390

375,141

OCP

Euro

CLO

DAC,

Series

2017-2X,

Class

B,

(EURIBOR

3

Month

+

1.35%),

1.35%,

01/15/32

(a)(d)

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

EUR

170

154,979

Octagon

54

Ltd.,

Series

2021-1A,

Class

D,

(LIBOR

USD

3

Month

+

3.05%),

5.56%,

07/15/34

(a)(b)

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

USD

250

219,931

Octagon

Investment

Partners

18-R

Ltd.,

Series

2018-18A,

Class

A1A,

(LIBOR

USD

3

Month

+

0.96%),

3.70%,

04/16/31

(a)(b)

........

1,780

1,738,506

Octagon

Investment

Partners

33

Ltd.,

Series

2017-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.19%),

3.90%,

01/20/31

(a)(b)

.........

250

245,207

Octagon

Investment

Partners

46

Ltd.,

Series

2020-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.16%,

07/15/36

(a)(b)

.........

710

662,858

Octagon

Investment

Partners

51

Ltd.,

Series

2021-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

07/20/34

(a)(b)

.........

1,910

1,828,254

Octagon

Investment

Partners

XV

Ltd.,

Series

2013-1A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.35%),

4.09%,

07/19/30

(a)(b)

........

320

312,127

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Octagon

Investment

Partners

XVI

Ltd.,

Series

2013-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.02%),

3.76%,

07/17/30

(a)(b)

........

USD

2,755

$

2,677,380

Octagon

Investment

Partners

XVII

Ltd.,

Series

2013-1A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.00%),

3.78%,

01/25/31

(a)(b)

........

2,640

2,574,531

OHA

Credit

Funding

2

Ltd.,

Series

2019-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.15%),

3.88%,

04/21/34

(a)(b)

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

3,220

3,101,122

OHA

Credit

Funding

3

Ltd.

(a)(b)

Series

2019-3A,

Class

AR,

(LIBOR

USD

3

Month

+

1.14%),

3.85%,

07/02/35

...

1,450

1,393,740

Series

2019-3A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

07/02/35

...

668

631,555

OHA

Credit

Funding

4

Ltd.,

Series

2019-4A,

Class

AR,

(LIBOR

USD

3

Month

+

1.15%),

3.91%,

10/22/36

(a)(b)

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

250

238,994

OHA

Loan

Funding

Ltd.

(a)(b)

Series

2013-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.04%),

4.00%,

05/23/31

...

4,495

4,388,848

Series

2015-1A,

Class

AR3,

(LIBOR

USD

3

Month

+

1.15%),

3.89%,

01/19/37

...

1,170

1,116,850

OneMain

Financial

Issuance

Trust

(b)

Series

2019-2A,

Class

A,

3.14%,

10/14/36

3,140

2,790,552

Series

2020-1A,

Class

A,

3.84%,

05/14/32

1,802

1,791,044

Series

2020-2A,

Class

C,

2.76%,

09/14/35

550

457,073

Series

2020-2A,

Class

D,

3.45%,

09/14/35

1,410

1,159,966

Series

2021-1A,

Class

A2,

(SOFR

30

Day

Average

+

0.76%),

3.05%,

06/16/36

(a)

.

365

351,063

Series

2021-1A,

Class

C,

2.22%,

06/16/36

100

80,370

Series

2022-2A,

Class

A,

4.89%,

10/14/34

1,766

1,731,169

Series

2022-2A,

Class

B,

5.24%,

10/14/34

1,471

1,427,025

Owl

Rock

CLO

VI

Ltd.,

Series

2021-6A,

Class

A,

(LIBOR

USD

3

Month

+

1.45%),

4.98%,

06/21/32

(a)(b)

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

250

240,963

OZLM

Funding

IV

Ltd.,

Series

2013-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.25%),

4.01%,

10/22/30

(a)(b)

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

9,022

8,861,927

OZLM

VI

Ltd.,

Series

2014-6A,

Class

A2AS,

(LIBOR

USD

3

Month

+

1.75%),

4.49%,

04/17/31

(a)(b)

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

500

466,183

OZLM

VIII

Ltd.,

Series

2014-8A,

Class

BR3,

(LIBOR

USD

3

Month

+

2.10%),

4.84%,

10/17/29

(a)(b)

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

340

316,362

OZLM

XXII

Ltd.,

Series

2018-22A,

Class

A1,

(LIBOR

USD

3

Month

+

1.07%),

3.81%,

01/17/31

(a)(b)

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

250

243,872

OZLM

XXIV

Ltd.,

Series

2019-24A,

Class

A2AR,

(LIBOR

USD

3

Month

+

1.70%),

4.41%,

07/20/32

(a)(b)

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

250

235,768

Palmer

Square

CLO

Ltd.

(a)(b)

Series

2013-2A,

Class

A1A3,

(LIBOR

USD

3

Month

+

1.00%),

3.74%,

10/17/31

...

650

632,106

Series

2015-1A,

Class

A1A4,

(LIBOR

USD

3

Month

+

1.13%),

4.11%,

05/21/34

...

5,525

5,292,349

Series

2015-1A,

Class

A2R4,

(LIBOR

USD

3

Month

+

1.70%),

4.68%,

05/21/34

...

250

235,438

Series

2015-2A,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.55%),

4.26%,

07/20/30

...

500

475,770

Series

2018-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.03%),

3.77%,

04/18/31

...

850

831,566

Series

2018-2A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.10%),

3.84%,

07/16/31

...

1,070

1,040,915

Series

2020-3A,

Class

A1AR,

(LIBOR

USD

3

Month

+

1.08%),

3.99%,

11/15/31

..

250

243,223

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

22

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2021-3A,

Class

A1,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

01/15/35

...

USD

250

$

238,797

Palmer

Square

Loan

Funding

Ltd.

(a)(b)

Series

2020-1A,

Class

A2,

(LIBOR

USD

3

Month

+

1.35%),

4.33%,

02/20/28

...

990

990,000

Series

2020-4A,

Class

A2,

(LIBOR

USD

3

Month

+

1.60%),

4.60%,

11/25/28

...

560

543,658

Series

2021-2A,

Class

A2,

(LIBOR

USD

3

Month

+

1.25%),

4.23%,

05/20/29

...

260

246,566

Series

2022-2A,

Class

A2,

(3

Month

CME

Term

SOFR

+

1.90%),

2.99%,

10/15/30

340

327,312

Series

2022-2A,

Class

B,

(3

Month

CME

Term

SOFR

+

2.20%),

3.29%,

10/15/30

250

230,246

Park

Avenue

Institutional

Advisers

CLO

Ltd.

(a)(b)

Series

2017-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.24%),

4.15%,

02/14/34

...

1,390

1,329,030

Series

2017-1A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.55%),

4.46%,

02/14/34

...

970

887,535

Penta

CLO

DAC

(a)(b)

Series

2022-11A,

Class

B,

(EURIBOR

3

Month

+

2.45%),

2.45%,

11/15/34

...

EUR

530

478,331

Series

2022-11A,

Class

D,

(EURIBOR

3

Month

+

4.80%),

4.80%,

11/15/34

...

390

348,847

Pikes

Peak

CLO

1,

Series

2018-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

3.96%,

07/24/31

(a)(b)

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

USD

275

267,663

Pikes

Peak

CLO

11,

Series

2022-11A,

Class

A1,

(3

Month

CME

Term

SOFR

+

1.95%),

4.13%,

07/25/34

(a)(b)

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

971

941,155

Pikes

Peak

CLO

8,

Series

2021-8A,

Class

A,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

07/20/34

(a)(b)

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

1,570

1,499,383

Post

CLO

Ltd.,

Series

2018-1A,

Class

D,

(LIBOR

USD

3

Month

+

2.95%),

5.69%,

04/16/31

(a)(b)

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

500

452,303

Prodigy

Finance

DAC

(a)(b)

Series

2021-1A,

Class

A,

(LIBOR

USD

1

Month

+

1.25%),

4.33%,

07/25/51

...

1,041

1,015,840

Series

2021-1A,

Class

B,

(LIBOR

USD

1

Month

+

2.50%),

5.58%,

07/25/51

...

280

276,143

Series

2021-1A,

Class

C,

(LIBOR

USD

1

Month

+

3.75%),

6.83%,

07/25/51

...

250

246,701

Progress

Residential

Trust,

Series

2020-SFR2,

Class

D,

3.87%,

06/17/37

(b)

..........

400

372,325

Race

Point

IX

CLO

Ltd.,

Series

2015-9A,

Class

A1A2,

(LIBOR

USD

3

Month

+

0.94%),

3.45%,

10/15/30

(a)(b)

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

1,026

1,005,599

Rad

CLO

15

Ltd.

(a)(b)

Series

2021-15A,

Class

A,

(LIBOR

USD

3

Month

+

1.09%),

3.80%,

01/20/34

...

250

240,372

Series

2021-15A,

Class

B,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

01/20/34

...

250

236,929

Rad

CLO

2

Ltd.,

Series

2018-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.08%),

3.59%,

10/15/31

(a)(b)

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

710

688,510

Rad

CLO

5

Ltd.,

Series

2019-5A,

Class

AR,

(LIBOR

USD

3

Month

+

1.12%),

3.90%,

07/24/32

(a)(b)

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

800

776,661

Recette

CLO

Ltd.,

Series

2015-1A,

Class

BRR,

(LIBOR

USD

3

Month

+

1.40%),

4.11%,

04/20/34

(a)(b)

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

250

232,514

Regatta

VI

Funding

Ltd.,

Series

2016-1A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.16%),

3.87%,

04/20/34

(a)(b)

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

1,040

1,000,562

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Regatta

VII

Funding

Ltd.

(a)(b)

Series

2016-1A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.15%),

4.68%,

06/20/34

...

USD

720

$

689,702

Series

2016-1A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.60%),

5.13%,

06/20/34

...

250

236,014

Regatta

VIII

Funding

Ltd.,

Series

2017-1A,

Class

B,

(LIBOR

USD

3

Month

+

1.70%),

4.44%,

10/17/30

(a)(b)

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

250

237,632

Regatta

XVI

Funding

Ltd.,

Series

2019-2A,

Class

B,

(LIBOR

USD

3

Month

+

2.05%),

4.56%,

01/15/33

(a)(b)

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

250

238,948

Regatta

XVIII

Funding

Ltd.,

Series

2021-1A,

Class

B,

(LIBOR

USD

3

Month

+

1.45%),

3.96%,

01/15/34

(a)(b)

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

250

236,551

Regional

Management

Issuance

Trust

(b)

Series

2020-1,

Class

C,

3.80%,

10/15/30

.

269

239,151

Series

2021-2,

Class

B,

2.35%,

08/15/33

.

130

103,086

Series

2021-2,

Class

C,

3.23%,

08/15/33

.

323

253,166

Series

2022-1,

Class

A,

3.07%,

03/15/32

.

794

717,598

Series

2022-1,

Class

B,

3.71%,

03/15/32

.

151

133,498

Series

2022-1,

Class

C,

4.46%,

03/15/32

.

100

87,874

Riserva

CLO

Ltd.,

Series

2016-3A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.06%),

3.80%,

01/18/34

(a)(b)

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

1,220

1,176,559

Rockford

Tower

CLO

Ltd.

(a)(b)

Series

2017-1A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.10%),

3.81%,

04/20/34

...

2,417

2,318,220

Series

2017-1A,

Class

BR2A,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

04/20/34

..

1,511

1,408,886

Series

2017-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.50%),

4.01%,

10/15/29

...

1,945

1,872,053

Series

2017-2A,

Class

DR,

(LIBOR

USD

3

Month

+

2.85%),

5.36%,

10/15/29

...

1,039

963,689

Series

2017-3A,

Class

A,

(LIBOR

USD

3

Month

+

1.19%),

3.90%,

10/20/30

...

3,487

3,409,720

Series

2018-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.10%),

4.08%,

05/20/31

...

297

290,039

Series

2018-2A,

Class

A,

(LIBOR

USD

3

Month

+

1.16%),

3.87%,

10/20/31

...

250

242,693

Series

2019-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.63%,

08/20/32

...

250

231,882

Series

2021-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

07/20/34

...

1,730

1,662,094

Rockford

Tower

Europe

CLO

DAC

(a)(d)

Series

2018-1X,

Class

B,

(EURIBOR

3

Month

+

1.85%),

2.88%,

12/20/31

...

EUR

576

516,604

Series

2018-1X,

Class

C,

(EURIBOR

3

Month

+

2.47%),

3.50%,

12/20/31

...

280

244,931

Romark

WM-R

Ltd.,

Series

2018-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.03%),

3.74%,

04/20/31

(a)(b)

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

USD

960

942,255

RR

3

Ltd.,

Series

2018-3A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.09%),

3.60%,

01/15/30

(a)(b)

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

1,090

1,066,213

RR

5

Ltd.,

Series

2018-5A,

Class

A2,

(LIBOR

USD

3

Month

+

1.65%),

4.16%,

10/15/31

(a)(b)

250

239,595

RR

LLC,

Series

2017-1A,

Class

A1AB,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

07/15/35

(a)(b)

2,140

2,051,768

RRE

9

Loan

Management

DAC,

Series

9A,

Class

A2,

(EURIBOR

3

Month

+

1.70%),

1.70%,

10/15/36

(a)(b)

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

EUR

650

553,136

Signal

Peak

CLO

1

Ltd.,

Series

2014-1A,

Class

AR3,

(LIBOR

USD

3

Month

+

1.16%),

3.90%,

04/17/34

(a)(b)

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

USD

5,180

4,983,965

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

23

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Signal

Peak

CLO

2

LLC

(a)(b)

Series

2015-1A,

Class

AR2,

(LIBOR

USD

3

Month

+

0.98%),

3.69%,

04/20/29

...

USD

193

$

189,335

Series

2015-1A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.50%),

4.21%,

04/20/29

...

1,466

1,408,429

Signal

Peak

CLO

8

Ltd.,

Series

2020-8A,

Class

A,

(LIBOR

USD

3

Month

+

1.27%),

3.98%,

04/20/33

(a)(b)

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

640

617,934

Silver

Creek

CLO

Ltd.

(a)(b)

Series

2014-1A,

Class

AR,

(LIBOR

USD

3

Month

+

1.24%),

3.95%,

07/20/30

...

420

413,930

Series

2014-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.30%),

5.01%,

07/20/30

...

500

475,109

Sixth

Street

CLO

XIX

Ltd.,

Series

2021-19A,

Class

A,

(LIBOR

USD

3

Month

+

1.10%),

3.81%,

07/20/34

(a)(b)

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

3,815

3,655,659

Sixth

Street

CLO

XVI

Ltd.,

Series

2020-16A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.32%),

4.03%,

10/20/32

(a)(b)

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

250

243,266

SLM

Private

Credit

Student

Loan

Trust,

Series

2004-B,

Class

A3,

(LIBOR

USD

3

Month

+

0.33%),

3.62%,

03/15/24

(a)

..........

161

160,122

SLM

Private

Education

Loan

Trust,

Series

2010-C,

Class

A5,

(LIBOR

USD

1

Month

+

4.75%),

7.57%,

10/15/41

(a)(b)

.........

3,275

3,529,714

SMB

Private

Education

Loan

Trust

(b)

Series

2015-B,

Class

B,

3.50%,

12/17/40

990

934,885

Series

2020-PTA,

Class

A2A,

1.60%,

09/15/54

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

3,260

2,911,111

Series

2020-PTA,

Class

B,

2.50%,

09/15/54

1,540

1,204,266

Series

2021-A,

Class

C,

2.99%,

01/15/53

2,870

2,420,058

Series

2021-A,

Class

D1,

3.86%,

01/15/53

1,340

1,198,098

Series

2021-A,

Class

D2,

3.86%,

01/15/53

730

650,265

Series

2021-C,

Class

B,

2.30%,

01/15/53

190

163,170

Series

2021-C,

Class

C,

3.00%,

01/15/53

160

142,103

Series

2021-C,

Class

D,

3.93%,

01/15/53

100

88,674

Sound

Point

CLO

XII

Ltd.,

Series

2016-2A,

Class

CR2,

(LIBOR

USD

3

Month

+

2.05%),

4.76%,

10/20/28

(a)(b)

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

900

860,887

Sound

Point

CLO

XV

Ltd.,

Series

2017-1A,

Class

ARR,

(LIBOR

USD

3

Month

+

0.90%),

3.68%,

01/23/29

(a)(b)

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

252

249,145

Sound

Point

CLO

XXIII,

Series

2019-2A,

Class

AR,

(LIBOR

USD

3

Month

+

1.17%),

3.68%,

07/15/34

(a)(b)

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

4,180

4,000,692

Sound

Point

CLO

XXVI

Ltd.,

Series

2020-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.35%),

6.06%,

07/20/34

(a)(b)

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

320

273,776

Sound

Point

CLO

XXVIII

Ltd.,

Series

2020-3A,

Class

A1,

(LIBOR

USD

3

Month

+

1.28%),

4.06%,

01/25/32

(a)(b)

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

460

449,575

St.

Paul's

CLO

XII

DAC,

Series

12X,

Class

B1,

(EURIBOR

3

Month

+

1.60%),

1.60%,

04/15/33

(a)(d)

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

EUR

310

268,706

Steele

Creek

CLO

Ltd.,

Series

2017-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.25%),

3.76%,

10/15/30

(a)(b)

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

USD

1,070

1,044,855

Sutton

Park

CLO

DAC,

Series

1X,

Class

BE,

(EURIBOR

3

Month

+

2.35%),

2.67%,

11/15/31

(a)(d)

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

EUR

202

177,862

Symphony

CLO

XVI

Ltd.,

Series

2015-16A,

Class

AR,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

10/15/31

(a)(b)

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

USD

250

243,427

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Symphony

CLO

XVII

Ltd.,

Series

2016-17A,

Class

AR,

(LIBOR

USD

3

Month

+

0.88%),

3.39%,

04/15/28

(a)(b)

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

USD

431

$

424,430

Symphony

CLO

XXIII

Ltd.,

Series

2020-23A,

Class

BR,

(LIBOR

USD

3

Month

+

1.60%),

4.11%,

01/15/34

(a)(b)

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

250

236,541

Symphony

CLO

XXVI

Ltd.,

Series

2021-26A,

Class

AR,

(LIBOR

USD

3

Month

+

1.08%),

3.79%,

04/20/33

(a)(b)

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

514

500,260

TCI-Flatiron

CLO

Ltd.,

Series

2017-1A,

Class

AR,

(LIBOR

USD

3

Month

+

0.96%),

3.90%,

11/18/30

(a)(b)

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

890

870,901

TCW

CLO

AMR

Ltd.,

Series

2019-1A,

Class

ASNR,

(LIBOR

USD

3

Month

+

1.22%),

4.14%,

08/16/34

(a)(b)

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

250

240,385

TIAA

CLO

III

Ltd.,

Series

2017-2A,

Class

A,

(LIBOR

USD

3

Month

+

1.15%),

3.89%,

01/16/31

(a)(b)

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

910

889,716

TICP

CLO

IX

Ltd.,

Series

2017-9A,

Class

A,

(LIBOR

USD

3

Month

+

1.14%),

3.85%,

01/20/31

(a)(b)

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

670

653,781

TICP

CLO

VI

Ltd.

(a)(b)

Series

2016-6A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.12%),

3.63%,

01/15/34

...

1,060

1,010,975

Series

2016-6A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.50%),

4.01%,

01/15/34

...

1,360

1,287,917

Trestles

CLO

III

Ltd.

(a)(b)

Series

2020-3A,

Class

A1,

(LIBOR

USD

3

Month

+

1.33%),

4.04%,

01/20/33

...

1,830

1,772,826

Series

2020-3A,

Class

B1,

(LIBOR

USD

3

Month

+

1.85%),

4.56%,

01/20/33

...

530

500,498

Trestles

CLO

IV

Ltd.,

Series

2021-4A,

Class

A,

(LIBOR

USD

3

Month

+

1.17%),

3.90%,

07/21/34

(a)(b)

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

1,550

1,486,077

Trestles

CLO

V

Ltd.,

Series

2021-5A,

Class

A1,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

10/20/34

(a)(b)

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

1,380

1,316,495

Tricon

American

Homes,

Series

2020-SFR1,

Class

D,

2.55%,

07/17/38

(b)

..........

2,225

1,908,710

Trinitas

CLO

IV

Ltd.,

Series

2016-4A,

Class

A2L2,

(LIBOR

USD

3

Month

+

1.40%),

4.14%,

10/18/31

(a)(b)

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

220

212,214

Trinitas

CLO

XIV

Ltd.

(a)(b)

Series

2020-14A,

Class

B,

(LIBOR

USD

3

Month

+

2.00%),

4.78%,

01/25/34

...

730

693,382

Series

2020-14A,

Class

C,

(LIBOR

USD

3

Month

+

3.00%),

5.78%,

01/25/34

...

530

493,050

Venture

32

CLO

Ltd.,

Series

2018-32A,

Class

A2A,

(LIBOR

USD

3

Month

+

1.07%),

3.81%,

07/18/31

(a)(b)

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

350

340,131

Venture

XVIII

CLO

Ltd.,

Series

2014-18A,

Class

AR,

(LIBOR

USD

3

Month

+

1.22%),

3.73%,

10/15/29

(a)(b)

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

3,135

3,092,475

Voya

CLO

Ltd.

(a)(b)

Series

2017-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

04/20/34

...

465

441,750

Series

2017-4A,

Class

A1,

(LIBOR

USD

3

Month

+

1.13%),

3.64%,

10/15/30

...

1,680

1,651,654

Series

2019-1A,

Class

AR,

(LIBOR

USD

3

Month

+

1.06%),

3.57%,

04/15/31

...

2,064

2,019,475

Voya

Euro

CLO

II

DAC,

Series

2A,

Class

CR,

(EURIBOR

3

Month

+

2.15%),

2.15%,

07/15/35

(a)(b)

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

EUR

250

209,797

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

24

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Voya

Euro

CLO

V

DAC

(a)(b)

Series

5A,

Class

B1,

(EURIBOR

3

Month

+

1.75%),

1.75%,

04/15/35

.........

EUR

440

$

380,308

Series

5A,

Class

D,

(EURIBOR

3

Month

+

3.10%),

3.10%,

04/15/35

.........

250

203,977

Whitebox

CLO

I

Ltd.,

Series

2019-1A,

Class

CR,

(LIBOR

USD

3

Month

+

3.05%),

5.83%,

07/24/32

(a)(b)

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

USD

900

816,211

Whitebox

CLO

II

Ltd.

(a)(b)

Series

2020-2A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.22%),

4.00%,

10/24/34

...

530

508,303

Series

2020-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.75%),

4.53%,

10/24/34

...

280

266,411

Series

2020-2A,

Class

DR,

(LIBOR

USD

3

Month

+

3.35%),

6.13%,

10/24/34

...

280

252,402

Whitebox

CLO

III

Ltd.,

Series

2021-3A,

Class

D,

(LIBOR

USD

3

Month

+

3.35%),

5.86%,

10/15/34

(a)(b)

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

250

231,243

Woodmont

Trust,

Series

2017-2A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.67%),

4.38%,

04/20/33

(a)(b)

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

2,030

1,929,209

Total

Asset-Backed

Securities

—

11.3%

(Cost:

$391,735,031)

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

373,445,443

Corporate

Bonds

Aerospace

&

Defense

—

1.1%

BAE

Systems

plc,

3.40%,

04/15/30

(b)

.....

2,897

2,508,920

Boeing

Co.

(The),

3.95%,

08/01/59

......

1,125

698,907

General

Dynamics

Corp.,

3.63%,

04/01/30

.

623

569,943

Huntington

Ingalls

Industries,

Inc.

2.04%,

08/16/28

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

842

681,018

4.20%,

05/01/30

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

1,645

1,451,484

L3Harris

Technologies,

Inc.

4.40%,

06/15/28

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

6,690

6,285,428

1.80%,

01/15/31

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

4,849

3,627,358

Leidos

,

Inc.

4.38%,

05/15/30

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

1,969

1,725,655

2.30%,

02/15/31

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

995

737,216

Lockheed

Martin

Corp.

3.60%,

03/01/35

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

2,227

1,898,570

Series

B,

6.15%,

09/01/36

..........

589

622,679

Northrop

Grumman

Corp.

3.85%,

04/15/45

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

1,154

878,865

4.03%,

10/15/47

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

2,419

1,922,824

Raytheon

Technologies

Corp.

3.15%,

12/15/24

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

920

895,316

7.20%,

08/15/27

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

185

202,109

7.00%,

11/01/28

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

2,010

2,132,016

4.13%,

11/16/28

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

6,832

6,383,198

2.38%,

03/15/32

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

107

84,031

4.20%,

12/15/44

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

515

404,593

3.13%,

07/01/50

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

518

348,234

3.03%,

03/15/52

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

1,708

1,114,286

Textron,

Inc.

3.90%,

09/17/29

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

2,448

2,164,168

2.45%,

03/15/31

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

183

140,379

37,477,197

Air

Freight

&

Logistics

—

0.0%

FedEx

Corp.,

4.25%,

05/15/30

.........

75

67,999

Airlines

—

0.6%

Air

Canada

Pass-Through

Trust

(b)

Series

2017-1,

Class

B,

3.70%,

01/15/26

6

5,388

Series

2017-1,

Class

AA,

3.30%,

01/15/30

404

348,603

Security

Par

(000)

Par

(000)

Value

Airlines

(continued)

American

Airlines

Pass-Through

Trust

Series

2015-2,

Class

B,

4.40%,

09/22/23

USD

1,489

$

1,431,515

Series

2016-1,

Class

B,

5.25%,

01/15/24

1,005

957,872

Series

2016-2,

Class

B,

4.38%,

06/15/24

(b)

545

505,706

Series

2017-1,

Class

B,

4.95%,

02/15/25

453

412,005

Series

2015-2,

Class

AA,

3.60%,

09/22/27

291

261,131

Series

2016-1,

Class

AA,

3.58%,

01/15/28

2,179

1,945,287

Series

2019-1,

Class

B,

3.85%,

02/15/28

938

757,859

Series

2016-2,

Class

AA,

3.20%,

06/15/28

420

365,187

Series

2016-3,

Class

AA,

3.00%,

10/15/28

872

752,357

Series

2017-1,

Class

AA,

3.65%,

02/15/29

332

293,375

Series

2017-2,

Class

AA,

3.35%,

10/15/29

634

552,789

Series

2019-1,

Class

AA,

3.15%,

02/15/32

981

818,193

Delta

Air

Lines

Pass-Through

Trust,

Series

2019-1,

Class

AA,

3.20%,

04/25/24

....

2,311

2,232,871

United

Airlines

Pass-Through

Trust

Series

2016-2,

Class

B,

3.65%,

10/07/25

77

67,619

Series

2020-1,

Class

B,

4.88%,

01/15/26

669

624,491

Series

2020-1,

Class

A,

5.88%,

10/15/27

2,407

2,321,357

Series

2015-1,

Class

AA,

3.45%,

12/01/27

855

753,452

Series

2019-2,

Class

B,

3.50%,

05/01/28

925

766,021

Series

2016-1,

Class

AA,

3.10%,

07/07/28

50

42,429

Series

2016-2,

Class

AA,

2.88%,

10/07/28

430

371,588

Series

2018-1,

Class

AA,

3.50%,

03/01/30

518

454,176

Series

2019-1,

Class

AA,

4.15%,

08/25/31

594

533,582

Series

2019-2,

Class

AA,

2.70%,

05/01/32

805

642,883

18,217,736

Auto

Components

—

0.0%

Metalsa

S

A

P

I

de

CV,

3.75%,

05/04/31

(d)

..

561

372,364

Automobiles

—

0.3%

General

Motors

Co.

5.00%,

10/01/28

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

373

343,111

5.40%,

10/15/29

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

2,165

1,996,231

Hyundai

Capital

America

(b)

2.38%,

02/10/23

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

586

580,844

0.80%,

01/08/24

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

2,993

2,815,697

Nissan

Motor

Co.

Ltd.,

4.81%,

09/17/30

(b)

..

4,370

3,540,479

9,276,362

Banks

—

3.8%

Banco

Santander

SA,

1.85%,

03/25/26

....

400

345,392

Bank

of

America

Corp.

(a)

(LIBOR

USD

3

Month

+

0.79%),

3.00%,

12/20/23

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

1,115

1,109,080

(LIBOR

USD

3

Month

+

0.87%),

2.46%,

10/22/25

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

2,269

2,124,428

(SOFR

6

Month

+

1.15%),

1.32%,

06/19/26

12

10,651

(SOFR

6

Month

+

0.96%),

1.73%,

07/22/27

1,168

1,002,061

(LIBOR

USD

3

Month

+

1.58%),

3.82%,

01/20/28

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

5,226

4,810,227

(SOFR

6

Month

+

1.05%),

2.55%,

02/04/28

1,466

1,275,509

(LIBOR

USD

3

Month

+

1.51%),

3.71%,

04/24/28

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

711

646,966

(LIBOR

USD

3

Month

+

1.37%),

3.59%,

07/21/28

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

1,863

1,682,600

(LIBOR

USD

3

Month

+

1.21%),

3.97%,

02/07/30

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

2,021

1,798,976

(LIBOR

USD

3

Month

+

1.18%),

3.19%,

07/23/30

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

1,498

1,262,535

(LIBOR

USD

3

Month

+

0.99%),

2.50%,

02/13/31

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

1,455

1,148,087

(SOFR

6

Month

+

1.37%),

1.92%,

10/24/31

3,462

2,560,832

(SOFR

6

Month

+

1.22%),

2.30%,

07/21/32

5,074

3,791,976

(SOFR

6

Month

+

1.21%),

2.57%,

10/20/32

4,282

3,274,995

(SOFR

6

Month

+

1.33%),

2.97%,

02/04/33

11,099

8,676,655

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

25

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(SOFR

6

Month

+

1.83%),

4.57%,

04/27/33

USD

7,045

$

6,310,112

(SOFR

6

Month

+

2.16%),

5.02%,

07/22/33

9,008

8,356,293

Barclays

plc

4.38%,

01/12/26

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

3,223

3,038,305

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.30%),

5.30%,

08/09/26

(a)

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

987

948,231

Citigroup,

Inc.

(a)

(SOFR

6

Month

+

1.28%),

3.07%,

02/24/28

11,121

9,911,595

(LIBOR

USD

3

Month

+

1.39%),

3.67%,

07/24/28

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

885

796,745

(LIBOR

USD

3

Month

+

1.34%),

3.98%,

03/20/30

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

1,912

1,696,688

(SOFR

6

Month

+

1.42%),

2.98%,

11/05/30

10,272

8,440,157

(SOFR

6

Month

+

1.18%),

2.52%,

11/03/32

611

462,977

(SOFR

6

Month

+

1.94%),

3.79%,

03/17/33

924

774,550

Danske

Bank

A/S

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.03%),

1.17%,

12/08/23

(a)(b)

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

1,325

1,312,738

5.38%,

01/12/24

(d)

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

514

511,111

5.38%,

01/12/24

(b)

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

541

537,959

Discover

Bank,

3.45%,

07/27/26

........

388

353,209

Grupo

Aval

Ltd.,

4.38%,

02/04/30

(b)

......

631

453,926

HSBC

Holdings

plc

(a)

(SOFR

6

Month

+

1.10%),

2.25%,

11/22/27

913

767,093

(LIBOR

USD

3

Month

+

1.53%),

4.58%,

06/19/29

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

924

823,638

(LIBOR

USD

3

Month

+

1.61%),

3.97%,

05/22/30

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

919

777,769

ING

Groep

NV,

4.63%,

01/06/26

(b)

.......

592

569,380

JPMorgan

Chase

&

Co.

(a)

(LIBOR

USD

3

Month

+

1.34%),

3.78%,

02/01/28

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

7,631

6,996,359

(SOFR

6

Month

+

1.17%),

2.95%,

02/24/28

7,740

6,843,864

(LIBOR

USD

3

Month

+

1.38%),

3.54%,

05/01/28

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

1,756

1,589,899

(SOFR

6

Month

+

1.75%),

4.57%,

06/14/30

5,517

5,084,075

(SOFR

6

Month

+

1.26%),

2.96%,

01/25/33

3,400

2,672,688

(SOFR

6

Month

+

2.08%),

4.91%,

07/25/33

5,284

4,872,670

(SOFR

6

Month

+

2.58%),

5.72%,

09/14/33

2,000

1,891,289

(LIBOR

USD

3

Month

+

1.46%),

4.03%,

07/24/48

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

406

308,026

Lloyds

Banking

Group

plc,

3.75%,

01/11/27

.

776

709,376

Mitsubishi

UFJ

Financial

Group,

Inc.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.55%),

5.06%,

09/12/25

(a)

2,472

2,446,008

Mizuho

Financial

Group,

Inc.,

(SOFR

6

Month

+

1.53%),

1.98%,

09/08/31

(a)

..........

647

477,736

NBK

Tier

1

Ltd.,

(USD

Constant

Maturity

6

Year

+

2.88%),

3.63%

(a)(b)(e)

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

838

713,505

Standard

Chartered

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.18%),

2.61%,

01/12/28

(a)(b)

.......

377

319,129

Wells

Fargo

&

Co.

(a)

(SOFR

6

Month

+

1.56%),

4.54%,

08/15/26

1

967

(SOFR

6

Month

+

1.50%),

3.35%,

03/02/33

1,005

815,023

(SOFR

6

Month

+

2.10%),

4.90%,

07/25/33

7,197

6,635,156

124,739,216

Beverages

—

0.3%

Anheuser-Busch

Cos.

LLC,

4.70%,

02/01/36

2,899

2,612,702

Anheuser-Busch

InBev

Worldwide,

Inc.,

4.75%,

01/23/29

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

5,580

5,435,805

8,048,507

Security

Par

(000)

Par

(000)

Value

Biotechnology

—

0.6%

AbbVie,

Inc.

4.55%,

03/15/35

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

USD

1,713

$

1,536,716

4.50%,

05/14/35

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

3,633

3,232,088

4.45%,

05/14/46

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

820

666,411

4.88%,

11/14/48

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

755

663,847

4.25%,

11/21/49

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

2,084

1,672,967

Amgen,

Inc.

4.05%,

08/18/29

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

3,000

2,760,566

4.40%,

05/01/45

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

2,444

1,995,349

Biogen,

Inc.

2.25%,

05/01/30

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

3,897

3,068,771

5.20%,

09/15/45

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

129

115,166

Gilead

Sciences,

Inc.

4.00%,

09/01/36

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

798

663,175

2.60%,

10/01/40

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

568

375,081

4.80%,

04/01/44

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

413

359,127

4.15%,

03/01/47

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

1,872

1,485,824

18,595,088

Capital

Markets

—

3.3%

Blackstone

Private

Credit

Fund

3.25%,

03/15/27

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

1,164

963,617

4.00%,

01/15/29

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

2,645

2,118,778

Credit

Suisse

AG,

3.63%,

09/09/24

......

1,325

1,264,502

Deutsche

Bank

AG,

(SOFR

6

Month

+

1.13%),

1.45%,

04/01/25

(a)

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

4,899

4,507,144

FactSet

Research

Systems,

Inc.,

3.45%,

03/01/32

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

3,392

2,764,121

Goldman

Sachs

Group,

Inc.

(The)

(SOFR

6

Month

+

0.54%),

0.63%,

11/17/23

(a)

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

4,716

4,687,468

(SOFR

6

Month

+

0.51%),

0.66%,

09/10/24

(a)

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

1,968

1,873,348

3.50%,

04/01/25

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

9,834

9,393,465

(SOFR

6

Month

+

0.61%),

0.86%,

02/12/26

(a)

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

4,289

3,826,651

(LIBOR

USD

3

Month

+

1.17%),

4.08%,

05/15/26

(a)

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

871

864,156

(SOFR

6

Month

+

1.11%),

2.64%,

02/24/28

(a)

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

10,137

8,795,257

(SOFR

6

Month

+

1.85%),

3.62%,

03/15/28

(a)

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

360

327,618

(LIBOR

USD

3

Month

+

1.51%),

3.69%,

06/05/28

(a)

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

837

756,836

(SOFR

6

Month

+

1.09%),

1.99%,

01/27/32

(a)

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

1,256

928,575

(SOFR

6

Month

+

1.28%),

2.62%,

04/22/32

(a)

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

1,202

931,704

(SOFR

6

Month

+

1.25%),

2.38%,

07/21/32

(a)

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

1,136

856,528

(SOFR

6

Month

+

1.26%),

2.65%,

10/21/32

(a)

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

6,465

4,955,210

(SOFR

6

Month

+

1.41%),

3.10%,

02/24/33

(a)

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

17,365

13,792,232

Intercontinental

Exchange,

Inc.

2.10%,

06/15/30

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

1,374

1,097,512

1.85%,

09/15/32

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

1,366

1,006,444

4.60%,

03/15/33

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

413

384,672

Moody's

Corp.

3.25%,

01/15/28

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

864

781,084

4.25%,

02/01/29

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

7

6,613

2.00%,

08/19/31

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

2,167

1,649,567

4.25%,

08/08/32

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

1,515

1,372,970

4.88%,

12/17/48

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

56

49,557

3.10%,

11/29/61

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

799

486,844

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

26

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Morgan

Stanley

(a)

(SOFR

6

Month

+

0.47%),

0.56%,

11/10/23

USD

1,152

$

1,145,680

(SOFR

6

Month

+

0.46%),

0.53%,

01/25/24

8,104

7,971,923

(LIBOR

USD

3

Month

+

1.63%),

4.43%,

01/23/30

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

4,330

3,980,400

(SOFR

6

Month

+

1.14%),

2.70%,

01/22/31

6,286

5,096,503

(SOFR

6

Month

+

1.02%),

1.93%,

04/28/32

631

460,658

(SOFR

6

Month

+

1.18%),

2.24%,

07/21/32

17,666

13,271,006

(SOFR

6

Month

+

1.20%),

2.51%,

10/20/32

768

586,926

(SOFR

6

Month

+

1.29%),

2.94%,

01/21/33

1,529

1,208,771

Nomura

Holdings,

Inc.,

2.61%,

07/14/31

...

1,987

1,473,336

S&P

Global,

Inc.

4.75%,

08/01/28

(b)

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

2,208

2,154,971

1.25%,

08/15/30

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

430

321,954

UBS

Group

AG,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.60%),

4.49%,

08/05/25

(a)(b)

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

1,812

1,767,752

109,882,353

Chemicals

—

0.2%

Celanese

US

Holdings

LLC,

5.90%,

07/05/24

2,594

2,558,046

Ecolab,

Inc.,

2.75%,

08/18/55

.........

1,186

733,512

LYB

International

Finance

III

LLC,

4.20%,

05/01/50

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

1,393

1,000,146

Orbia

Advance

Corp.

SAB

de

CV

(d)

5.88%,

09/17/44

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

459

354,945

5.50%,

01/15/48

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

459

331,857

Sherwin-Williams

Co.

(The),

2.30%,

05/15/30

1,468

1,172,534

Westlake

Corp.,

3.38%,

08/15/61

.......

1,049

606,505

6,757,545

Commercial

Services

&

Supplies

—

0.2%

RELX

Capital,

Inc.

4.00%,

03/18/29

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

3,004

2,758,732

3.00%,

05/22/30

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

3,294

2,779,045

Republic

Services,

Inc.,

3.95%,

05/15/28

..

621

581,103

Waste

Management,

Inc.,

1.15%,

03/15/28

.

1,685

1,381,700

7,500,580

Communications

Equipment

—

0.3%

Juniper

Networks,

Inc.,

2.00%,

12/10/30

...

445

328,303

Motorola

Solutions,

Inc.

4.60%,

05/23/29

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

3,902

3,593,175

2.75%,

05/24/31

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

3,881

2,961,959

5.60%,

06/01/32

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

2,839

2,714,059

5.50%,

09/01/44

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

1,648

1,400,793

10,998,289

Construction

&

Engineering

—

0.0%

Mexico

City

Airport

Trust,

4.25%,

10/31/26

(d)

308

271,040

Consumer

Finance

—

0.4%

Capital

One

Financial

Corp.,

(SOFR

6

Month

+

1.79%),

3.27%,

03/01/30

(a)

..........

1,792

1,498,349

Discover

Financial

Services

4.50%,

01/30/26

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

448

424,872

4.10%,

02/09/27

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

704

647,274

General

Motors

Financial

Co.,

Inc.

3.70%,

05/09/23

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

491

487,441

1.70%,

08/18/23

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

1,680

1,629,852

4.00%,

01/15/25

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

2,714

2,607,301

2.40%,

10/15/28

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

644

508,969

2.35%,

01/08/31

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

458

332,352

2.70%,

06/10/31

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

2,234

1,639,944

3.10%,

01/12/32

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

5,085

3,835,267

Synchrony

Financial,

3.70%,

08/04/26

....

14

12,795

13,624,416

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

—

0.0%

International

Paper

Co.,

6.00%,

11/15/41

..

USD

656

$

625,677

Diversified

Financial

Services

—

0.1%

ORIX

Corp.,

4.00%,

04/13/32

.........

179

157,346

Shell

International

Finance

BV

3.88%,

11/13/28

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

3,374

3,154,429

2.38%,

11/07/29

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

511

428,262

3,740,037

Diversified

Telecommunication

Services

—

1.5%

AT&T,

Inc.

0.00%,

11/27/22

(b)(f)

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

8,000

7,952,091

4.30%,

02/15/30

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

3,259

2,977,658

2.25%,

02/01/32

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

1,649

1,246,934

2.55%,

12/01/33

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

3,454

2,557,147

4.50%,

05/15/35

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

4,505

3,901,661

4.35%,

06/15/45

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

1,243

960,633

4.75%,

05/15/46

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

14

11,734

5.15%,

02/15/50

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

279

243,519

3.55%,

09/15/55

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

3,272

2,149,167

3.80%,

12/01/57

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

2,571

1,736,825

3.85%,

06/01/60

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

1,190

797,289

Deutsche

Telekom

International

Finance

BV,

3.60%,

01/19/27

(b)

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

387

362,811

Verizon

Communications,

Inc.

2.10%,

03/22/28

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

5,736

4,842,408

4.33%,

09/21/28

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

3

2,823

4.02%,

12/03/29

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

145

131,685

3.15%,

03/22/30

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

431

366,603

1.50%,

09/18/30

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

5,105

3,837,664

1.68%,

10/30/30

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

5,415

4,058,175

7.75%,

12/01/30

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

880

994,931

1.75%,

01/20/31

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

3,707

2,780,118

2.55%,

03/21/31

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

1,508

1,204,029

2.36%,

03/15/32

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

972

745,355

2.65%,

11/20/40

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

1,210

788,625

3.40%,

03/22/41

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

1,773

1,294,556

2.85%,

09/03/41

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

1,299

866,121

4.86%,

08/21/46

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

394

339,819

2.88%,

11/20/50

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

1,848

1,130,068

3.00%,

11/20/60

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

1,545

897,343

49,177,792

Electric

Utilities

—

2.7%

AEP

Texas,

Inc.

3.95%,

06/01/28

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

1,971

1,819,072

Series

I,

2.10%,

07/01/30

...........

499

389,177

3.80%,

10/01/47

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

505

360,853

Series

H,

3.45%,

01/15/50

..........

1,180

801,117

3.45%,

05/15/51

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

1,005

687,946

AEP

Transmission

Co.

LLC

3.80%,

06/15/49

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

1,166

882,062

3.15%,

09/15/49

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

1,081

733,022

Series

M,

3.65%,

04/01/50

..........

628

461,814

Series

N,

2.75%,

08/15/51

..........

1,198

748,517

Alabama

Power

Co.

Series

A,

4.30%,

07/15/48

..........

1,264

1,042,800

3.45%,

10/01/49

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

522

369,689

American

Transmission

Systems,

Inc.,

2.65%,

01/15/32

(b)

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

2,146

1,684,671

Atlantic

City

Electric

Co.,

2.30%,

03/15/31

..

412

333,830

Baltimore

Gas

&

Electric

Co.

3.50%,

08/15/46

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

1,060

780,673

3.75%,

08/15/47

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

557

430,229

4.25%,

09/15/48

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

831

690,489

3.20%,

09/15/49

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

1,036

714,751

2.90%,

06/15/50

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

540

350,597

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

27

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

4.55%,

06/01/52

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

USD

506

$

434,160

CenterPoint

Energy

Houston

Electric

LLC

Series

AE,

2.35%,

04/01/31

.........

1,317

1,074,477

3.95%,

03/01/48

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

1,262

1,008,210

Series

AD,

2.90%,

07/01/50

.........

620

408,359

Series

AF,

3.35%,

04/01/51

.........

425

304,690

Commonwealth

Edison

Co.

4.00%,

03/01/49

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

587

467,142

Series

127,

3.20%,

11/15/49

.........

529

366,225

Series

133,

3.85%,

03/15/52

.........

1,036

806,442

DTE

Electric

Co.

Series

A,

4.05%,

05/15/48

..........

1,505

1,225,937

3.95%,

03/01/49

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

1,281

1,027,219

Series

B,

3.65%,

03/01/52

..........

526

397,156

Duke

Energy

Carolinas

LLC

3.88%,

03/15/46

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

942

734,152

3.95%,

03/15/48

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

1,391

1,094,301

3.20%,

08/15/49

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

1,169

804,088

Duke

Energy

Corp.,

4.30%,

03/15/28

.....

1,175

1,106,049

Duke

Energy

Florida

LLC,

2.50%,

12/01/29

.

11,238

9,498,340

Duke

Energy

Progress

LLC,

3.45%,

03/15/29

3,888

3,525,237

Edison

International,

4.95%,

04/15/25

....

88

86,215

Entergy

Arkansas

LLC,

3.35%,

06/15/52

...

720

491,331

Entergy

Louisiana

LLC

4.20%,

09/01/48

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

1,581

1,271,060

4.75%,

09/15/52

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

358

311,330

Entergy

Mississippi

LLC,

3.85%,

06/01/49

..

499

374,312

Exelon

Corp.

5.10%,

06/15/45

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

312

277,923

4.45%,

04/15/46

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

191

155,903

4.70%,

04/15/50

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

1,541

1,288,727

4.10%,

03/15/52

(b)

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

225

173,595

FirstEnergy

Corp.

Series

B,

4.40%,

07/15/27

(c)

.........

1,839

1,706,371

Series

B,

2.25%,

09/01/30

..........

1,970

1,515,580

Series

C,

3.40%,

03/01/50

..........

411

269,205

FirstEnergy

Transmission

LLC

(b)

4.35%,

01/15/25

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

3,498

3,372,656

4.55%,

04/01/49

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

3,044

2,377,614

Florida

Power

&

Light

Co.

3.99%,

03/01/49

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

1,993

1,611,578

3.15%,

10/01/49

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

2,531

1,782,843

2.88%,

12/04/51

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

854

562,885

MidAmerican

Energy

Co.

3.10%,

05/01/27

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

90

83,375

3.65%,

04/15/29

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

2,787

2,569,716

3.65%,

08/01/48

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

14

10,590

3.15%,

04/15/50

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

1,371

932,085

2.70%,

08/01/52

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

606

380,606

Mid-Atlantic

Interstate

Transmission

LLC,

4.10%,

05/15/28

(b)

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

107

99,100

Northern

States

Power

Co.

4.00%,

08/15/45

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

669

540,035

2.90%,

03/01/50

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

946

632,097

3.20%,

04/01/52

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

540

375,222

NRG

Energy,

Inc.

(b)

2.45%,

12/02/27

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

3,615

2,959,411

4.45%,

06/15/29

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

26

22,552

NSTAR

Electric

Co.,

3.95%,

04/01/30

....

425

395,242

Ohio

Power

Co.

Series

Q,

1.63%,

01/15/31

..........

651

489,508

Series

G,

6.60%,

02/15/33

..........

441

468,608

4.15%,

04/01/48

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

60

48,038

4.00%,

06/01/49

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

983

754,928

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

Oncor

Electric

Delivery

Co.

LLC

3.70%,

11/15/28

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

USD

922

$

854,929

2.75%,

05/15/30

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

404

346,475

7.00%,

05/01/32

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

237

265,479

4.55%,

09/15/32

(b)

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

1,161

1,116,757

3.80%,

09/30/47

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

565

447,593

3.80%,

06/01/49

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

852

668,990

Pacific

Gas

&

Electric

Co.,

5.90%,

06/15/32

.

2,060

1,878,550

PECO

Energy

Co.,

3.05%,

03/15/51

.....

1,924

1,296,939

Public

Service

Electric

&

Gas

Co.

3.65%,

09/01/28

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

2,089

1,927,941

3.00%,

03/01/51

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

90

59,884

Southern

California

Edison

Co.

Series

A,

4.20%,

03/01/29

..........

560

517,827

2.25%,

06/01/30

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

2,987

2,366,282

Southwestern

Public

Service

Co.,

Series

8,

3.15%,

05/01/50

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

1,717

1,171,391

Tampa

Electric

Co.

4.45%,

06/15/49

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

892

751,605

5.00%,

07/15/52

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

351

322,331

Trans-Allegheny

Interstate

Line

Co.,

3.85%,

06/01/25

(b)

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

3,808

3,656,034

Virginia

Electric

&

Power

Co.

4.00%,

01/15/43

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

354

277,846

Series

D,

4.65%,

08/15/43

..........

897

772,065

Vistra

Operations

Co.

LLC,

4.30%,

07/15/29

(b)

4,222

3,597,532

Wisconsin

Power

&

Light

Co.,

3.95%,

09/01/32

644

581,912

88,832,096

Electrical

Equipment

—

0.0%

Eaton

Corp.,

4.70%,

08/23/52

.........

330

289,849

Entertainment

—

0.1%

Electronic

Arts,

Inc.,

1.85%,

02/15/31

.....

915

705,271

Walt

Disney

Co.

(The)

4.75%,

11/15/46

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

747

662,471

2.75%,

09/01/49

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

1,291

819,084

2,186,826

Equity

Real

Estate

Investment

Trusts

(REITs)

—

1.8%

Alexandria

Real

Estate

Equities,

Inc.,

1.88%,

02/01/33

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

1,420

998,022

American

Tower

Corp.

3.95%,

03/15/29

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

1,242

1,107,784

3.80%,

08/15/29

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

6,378

5,594,926

2.90%,

01/15/30

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

743

610,752

2.10%,

06/15/30

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

1,660

1,271,537

Boston

Properties

LP,

3.13%,

09/01/23

....

131

128,647

Crown

Castle,

Inc.

3.15%,

07/15/23

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

245

241,688

4.30%,

02/15/29

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

1,221

1,119,980

3.10%,

11/15/29

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

3,633

3,053,159

3.30%,

07/01/30

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

3,460

2,897,169

2.25%,

01/15/31

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

4,884

3,729,399

2.10%,

04/01/31

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

903

676,752

Digital

Dutch

Finco

BV

(d)

1.50%,

03/15/30

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

EUR

1,950

1,462,181

1.00%,

01/15/32

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

1,070

714,332

Duke

Realty

LP,

1.75%,

02/01/31

.......

USD

3,245

2,480,248

Equinix

,

Inc.

3.20%,

11/18/29

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

1,816

1,535,210

2.15%,

07/15/30

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

2,427

1,860,688

2.50%,

05/15/31

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

3,894

2,999,948

3.90%,

04/15/32

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

6,021

5,114,641

GLP

Capital

LP

5.75%,

06/01/28

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

706

661,105

4.00%,

01/15/30

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

3,725

3,110,893

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

28

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

4.00%,

01/15/31

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

USD

2,571

$

2,101,576

3.25%,

01/15/32

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

4,243

3,189,552

Invitation

Homes

Operating

Partnership

LP,

2.30%,

11/15/28

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

612

490,508

Kimco

Realty

Corp.,

4.60%,

02/01/33

.....

700

632,037

National

Retail

Properties,

Inc.

2.50%,

04/15/30

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

1,035

830,509

3.50%,

04/15/51

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

1,224

819,846

Prologis

LP,

2.25%,

04/15/30

..........

336

274,452

Realty

Income

Corp.,

3.25%,

01/15/31

....

928

791,893

Service

Properties

Trust,

4.35%,

10/01/24

..

990

876,407

VICI

Properties

LP

4.25%,

12/01/26

(b)

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

320

288,830

5.75%,

02/01/27

(b)

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

722

680,326

4.75%,

02/15/28

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

1,890

1,737,871

3.88%,

02/15/29

(b)

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

2,009

1,685,360

4.63%,

12/01/29

(b)

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

883

766,038

4.95%,

02/15/30

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

3,432

3,101,550

WP

Carey,

Inc.

2.40%,

02/01/31

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

446

342,309

2.45%,

02/01/32

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

452

337,304

60,315,429

Gas

Utilities

—

0.1%

Atmos

Energy

Corp.,

4.13%,

03/15/49

....

671

540,549

CenterPoint

Energy

Resources

Corp.,

1.75%,

10/01/30

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

416

320,056

ONE

Gas,

Inc.,

2.00%,

05/15/30

........

480

378,151

Piedmont

Natural

Gas

Co.,

Inc.

2.50%,

03/15/31

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

29

22,863

4.10%,

09/18/34

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

587

497,666

Promigas

SA

ESP

3.75%,

10/16/29

(d)

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

468

362,495

3.75%,

10/16/29

(b)

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

479

371,016

2,492,796

Health

Care

Equipment

&

Supplies

—

0.0%

Baxter

International,

Inc.,

2.54%,

02/01/32

.

777

604,826

Health

Care

Providers

&

Services

—

1.0%

Centene

Corp.

2.45%,

07/15/28

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

1,254

1,021,032

3.00%,

10/15/30

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

3,317

2,626,865

Cigna

Corp.,

3.40%,

03/15/51

.........

1,852

1,262,885

CVS

Health

Corp.

3.75%,

04/01/30

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

3,727

3,314,216

5.13%,

07/20/45

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

3,532

3,092,835

Elevance

Health,

Inc.,

3.13%,

05/15/50

...

128

84,665

HCA,

Inc.

5.25%,

04/15/25

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

2,721

2,665,258

5.25%,

06/15/26

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

2,237

2,161,694

3.50%,

09/01/30

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

5,862

4,840,370

2.38%,

07/15/31

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

5,019

3,712,681

3.63%,

03/15/32

(b)

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

2,381

1,926,318

3.50%,

07/15/51

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

2,889

1,788,781

Humana,

Inc.,

4.88%,

04/01/30

........

1,163

1,115,513

UnitedHealth

Group,

Inc.

3.38%,

04/15/27

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

798

751,544

4.63%,

11/15/41

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

1,189

1,060,377

4.20%,

01/15/47

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

953

787,765

32,212,799

Household

Products

—

0.0%

Clorox

Co.

(The),

1.80%,

05/15/30

......

40

30,860

Insurance

—

0.2%

American

International

Group,

Inc.

4.75%,

04/01/48

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

1,021

875,449

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

4.38%,

06/30/50

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

USD

687

$

549,754

Aon

Corp.

4.50%,

12/15/28

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

2,016

1,901,183

3.75%,

05/02/29

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

938

843,697

2.80%,

05/15/30

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

971

805,054

Berkshire

Hathaway

Finance

Corp.,

2.50%,

01/15/51

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

933

553,580

Hartford

Financial

Services

Group,

Inc.

(The)

5.95%,

10/15/36

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

228

222,806

3.60%,

08/19/49

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

86

61,567

Marsh

&

McLennan

Cos.,

Inc.,

2.25%,

11/15/30

1,547

1,227,489

7,040,579

Interactive

Media

&

Services

—

0.0%

Meta

Platforms,

Inc.,

4.45%,

08/15/52

(b)

...

755

616,142

Internet

&

Direct

Marketing

Retail

—

0.1%

Amazon.com,

Inc.

2.50%,

06/03/50

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

2,333

1,456,571

3.95%,

04/13/52

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

707

579,893

4.25%,

08/22/57

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

146

121,465

2,157,929

IT

Services

—

0.6%

Broadridge

Financial

Solutions,

Inc.,

3.40%,

06/27/26

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

364

338,619

DXC

Technology

Co.,

2.38%,

09/15/28

....

541

441,923

Fidelity

National

Information

Services,

Inc.,

1.00%,

12/03/28

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

EUR

2,131

1,712,037

Fiserv,

Inc.,

3.50%,

07/01/29

..........

USD

1,773

1,542,579

Global

Payments,

Inc.

1.20%,

03/01/26

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

2,326

2,001,860

4.80%,

04/01/26

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

2,145

2,070,933

2.15%,

01/15/27

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

1,839

1,573,620

4.95%,

08/15/27

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

568

541,157

4.45%,

06/01/28

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

390

356,536

3.20%,

08/15/29

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

6,704

5,585,926

5.30%,

08/15/29

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

2,020

1,899,699

2.90%,

05/15/30

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

400

318,850

5.95%,

08/15/52

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

905

797,338

International

Business

Machines

Corp.

4.25%,

05/15/49

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

1,045

827,835

3.43%,

02/09/52

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

1,225

836,362

20,845,274

Leisure

Products

—

0.0%

Hasbro,

Inc.,

3.90%,

11/19/29

.........

627

548,385

Life

Sciences

Tools

&

Services

—

0.1%

Agilent

Technologies,

Inc.

2.75%,

09/15/29

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

820

688,846

2.10%,

06/04/30

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

2,046

1,604,245

Thermo

Fisher

Scientific,

Inc.,

2.00%,

10/15/31

1,196

942,778

3,235,869

Machinery

—

0.1%

CNH

Industrial

Capital

LLC,

4.20%,

01/15/24

2,985

2,940,163

Otis

Worldwide

Corp.,

2.57%,

02/15/30

...

478

390,968

3,331,131

Media

—

1.1%

Charter

Communications

Operating

LLC

4.40%,

04/01/33

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

1,352

1,119,547

6.48%,

10/23/45

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

3,644

3,208,859

5.38%,

05/01/47

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

3,700

2,862,067

4.80%,

03/01/50

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

1,231

888,031

3.70%,

04/01/51

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

493

298,783

3.90%,

06/01/52

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

2,740

1,696,366

6.83%,

10/23/55

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

1,104

1,005,176

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

29

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Media

(continued)

3.85%,

04/01/61

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

USD

1,940

$

1,132,574

4.40%,

12/01/61

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

805

512,843

3.95%,

06/30/62

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

3,007

1,783,129

Comcast

Corp.

2.65%,

02/01/30

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

4,042

3,388,397

3.40%,

04/01/30

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

1,551

1,364,131

1.95%,

01/15/31

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

1,216

945,179

1.50%,

02/15/31

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

3,489

2,619,082

4.25%,

01/15/33

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

1,544

1,398,394

4.20%,

08/15/34

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

1,060

928,499

3.40%,

07/15/46

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

1,090

769,112

3.97%,

11/01/47

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

725

554,339

Cox

Communications,

Inc.

(b)

3.15%,

08/15/24

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

2,304

2,205,577

3.60%,

06/15/51

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

1,198

799,093

Discovery

Communications

LLC,

1.90%,

03/19/27

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

EUR

2,645

2,203,408

Grupo

Televisa

SAB,

6.63%,

01/15/40

....

USD

148

144,975

Interpublic

Group

of

Cos.,

Inc.

(The),

4.75%,

03/30/30

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

806

736,729

Omnicom

Group,

Inc.,

2.45%,

04/30/30

...

409

328,316

Paramount

Global

4.38%,

03/15/43

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

236

157,258

5.85%,

09/01/43

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

1,322

1,053,911

Time

Warner

Cable

LLC

6.55%,

05/01/37

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

674

608,143

5.88%,

11/15/40

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

994

818,275

35,530,193

Metals

&

Mining

—

0.4%

Anglo

American

Capital

plc

(b)

4.75%,

04/10/27

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

1,434

1,355,524

4.50%,

03/15/28

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

399

366,531

2.25%,

03/17/28

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

910

740,895

3.88%,

03/16/29

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

987

845,612

5.63%,

04/01/30

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

1,911

1,815,211

2.63%,

09/10/30

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

2,297

1,751,893

2.88%,

03/17/31

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

490

378,158

AngloGold

Ashanti

Holdings

plc,

3.75%,

10/01/30

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

1,162

903,310

Freeport

Indonesia

PT,

4.76%,

04/14/27

(b)

..

380

343,900

Fresnillo

plc,

4.25%,

10/02/50

(d)

........

834

571,968

Glencore

Funding

LLC

(b)

2.50%,

09/01/30

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

698

533,780

2.85%,

04/27/31

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

1,275

986,462

GUSAP

III

LP,

4.25%,

01/21/30

(d)

.......

259

225,783

Industrias

Penoles

SAB

de

CV,

5.65%,

09/12/49

(d)

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

459

377,183

Newmont

Corp.

2.80%,

10/01/29

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

781

646,520

2.60%,

07/15/32

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

1,129

860,802

Nucor

Corp.

3.95%,

05/01/28

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

1,492

1,372,174

2.70%,

06/01/30

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

550

451,821

14,527,527

Multi-Utilities

—

0.1%

Ameren

Illinois

Co.

3.80%,

05/15/28

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

430

400,421

3.25%,

03/15/50

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

811

562,335

Consumers

Energy

Co.

3.75%,

02/15/50

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

1,096

844,223

3.10%,

08/15/50

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

1,786

1,206,932

4.20%,

09/01/52

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

500

414,586

3,428,497

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

—

3.2%

Boardwalk

Pipelines

LP,

3.40%,

02/15/31

..

USD

654

$

526,061

BP

Capital

Markets

America,

Inc.,

3.00%,

02/24/50

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

681

441,725

Cameron

LNG

LLC

(b)

2.90%,

07/15/31

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

885

728,934

3.30%,

01/15/35

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

5,038

3,962,346

3.40%,

01/15/38

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

1,710

1,358,807

Cenovus

Energy,

Inc.,

6.75%,

11/15/39

...

232

230,371

Cheniere

Corpus

Christi

Holdings

LLC

7.00%,

06/30/24

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

5,195

5,283,585

5.88%,

03/31/25

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

778

781,112

5.13%,

06/30/27

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

5,937

5,748,294

3.70%,

11/15/29

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

235

203,796

2.74%,

12/31/39

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

2,987

2,154,305

Devon

Energy

Corp.

8.25%,

08/01/23

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

300

307,051

5.25%,

10/15/27

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

526

527,001

5.88%,

06/15/28

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

84

83,854

4.50%,

01/15/30

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

423

385,019

4.75%,

05/15/42

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

2,959

2,409,580

5.00%,

06/15/45

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

2

1,664

Diamondback

Energy,

Inc.

3.25%,

12/01/26

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

4,846

4,469,134

3.50%,

12/01/29

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

9,122

7,873,547

3.13%,

03/24/31

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

2,831

2,296,313

4.40%,

03/24/51

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

3,715

2,798,462

4.25%,

03/15/52

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

1,751

1,278,288

EIG

Pearl

Holdings

SARL,

4.39%,

11/30/46

(b)

923

646,100

Energy

Transfer

LP

4.50%,

11/01/23

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

725

718,643

3.90%,

05/15/24

(c)

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

2,971

2,896,590

5.95%,

12/01/25

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

1,740

1,745,695

6.50%,

02/01/42

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

182

169,373

6.10%,

02/15/42

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

541

472,722

5.15%,

02/01/43

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

227

179,224

5.30%,

04/15/47

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

1,780

1,420,001

5.00%,

05/15/50

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

3,251

2,540,975

Enterprise

Products

Operating

LLC

4.15%,

10/16/28

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

1,377

1,280,213

3.13%,

07/31/29

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

1,476

1,271,376

2.80%,

01/31/30

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

609

508,570

4.85%,

08/15/42

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

228

193,230

4.85%,

03/15/44

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

417

349,850

3.30%,

02/15/53

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

954

620,642

EQT

Corp.,

5.70%,

04/01/28

..........

365

357,828

Hess

Corp.,

7.13%,

03/15/33

..........

660

690,081

Kinder

Morgan

Energy

Partners

LP

6.50%,

02/01/37

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

706

680,730

4.70%,

11/01/42

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

555

433,431

5.00%,

03/01/43

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

940

751,807

5.50%,

03/01/44

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

1,278

1,062,340

5.40%,

09/01/44

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

534

452,400

Marathon

Petroleum

Corp.,

5.00%,

09/15/54

529

425,379

NGPL

PipeCo

LLC

(b)

4.88%,

08/15/27

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

2,110

1,964,595

3.25%,

07/15/31

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

4,497

3,521,325

Northwest

Pipeline

LLC,

4.00%,

04/01/27

..

3,271

3,038,280

Sabine

Pass

Liquefaction

LLC

5.63%,

04/15/23

(c)

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

1,205

1,205,637

5.75%,

05/15/24

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

6,544

6,567,958

5.63%,

03/01/25

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

9,407

9,397,712

5.88%,

06/30/26

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

2,204

2,205,711

Suncor

Energy,

Inc.,

6.50%,

06/15/38

....

683

673,363

Targa

Resources

Corp.

5.20%,

07/01/27

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

333

320,338

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

30

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

4.95%,

04/15/52

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

USD

503

$

387,009

6.25%,

07/01/52

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

925

840,308

Texas

Eastern

Transmission

LP,

3.50%,

01/15/28

(b)

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

3,420

3,069,121

Transcontinental

Gas

Pipe

Line

Co.

LLC

7.85%,

02/01/26

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

3,272

3,475,240

4.00%,

03/15/28

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

3,205

2,939,551

3.25%,

05/15/30

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

1,176

994,211

4.60%,

03/15/48

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

386

318,021

3.95%,

05/15/50

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

466

344,130

Transportadora

de

Gas

Internacional

SA

ESP,

5.55%,

11/01/28

(d)

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

281

250,231

Williams

Cos.,

Inc.

(The),

3.50%,

10/15/51

.

1,515

1,008,104

106,237,294

Paper

&

Forest

Products

—

0.0%

Georgia-Pacific

LLC,

8.88%,

05/15/31

....

165

200,868

Suzano

Austria

GmbH

5.00%,

01/15/30

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

619

535,234

3.75%,

01/15/31

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

295

230,100

Series

DM3N,

3.13%,

01/15/32

.......

568

406,475

1,372,677

Pharmaceuticals

—

0.3%

Merck

&

Co.,

Inc.,

2.35%,

06/24/40

......

168

112,846

Merck

Sharp

&

Dohme

Corp.,

5.75%,

11/15/36

569

593,209

Pfizer,

Inc.,

1.75%,

08/18/31

..........

2,927

2,284,286

Takeda

Pharmaceutical

Co.

Ltd.

5.00%,

11/26/28

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

1,814

1,756,005

2.05%,

03/31/30

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

5,391

4,261,506

9,007,852

Professional

Services

—

0.0%

Equifax,

Inc.,

3.10%,

05/15/30

.........

541

449,128

Road

&

Rail

—

0.6%

Burlington

Northern

Santa

Fe

LLC

4.38%,

09/01/42

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

727

624,563

4.05%,

06/15/48

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

555

453,711

3.30%,

09/15/51

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

1,423

1,013,324

4.45%,

01/15/53

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

575

498,324

CSX

Corp.

4.30%,

03/01/48

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

444

365,725

4.50%,

03/15/49

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

785

664,562

3.35%,

09/15/49

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

749

527,009

4.50%,

11/15/52

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

228

191,507

4.25%,

11/01/66

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

408

310,079

Norfolk

Southern

Corp.

2.30%,

05/15/31

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

40

32,029

3.00%,

03/15/32

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

3,159

2,641,434

3.05%,

05/15/50

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

999

651,035

4.55%,

06/01/53

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

592

501,836

3.16%,

05/15/55

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

2,242

1,433,029

Penske

Truck

Leasing

Co.

LP

(b)

4.00%,

07/15/25

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

1,060

1,010,271

1.20%,

11/15/25

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

1,773

1,540,428

1.70%,

06/15/26

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

1,398

1,202,277

Union

Pacific

Corp.

3.84%,

03/20/60

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

3,152

2,340,499

3.55%,

05/20/61

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

547

380,799

2.97%,

09/16/62

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

1,712

1,036,396

Union

Pacific

Railroad

Co.

Pass-Through

Trust,

Series

2014-1,

3.23%,

05/14/26

......

1,218

1,159,882

18,578,719

Semiconductors

&

Semiconductor

Equipment

—

1.3%

Applied

Materials,

Inc.,

2.75%,

06/01/50

...

542

352,756

Broadcom

Corp.,

3.50%,

01/15/28

......

426

377,179

Security

Par

(000)

Par

(000)

Value

Semiconductors

&

Semiconductor

Equipment

(continued)

Broadcom,

Inc.

(b)

1.95%,

02/15/28

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

USD

386

$

316,288

4.15%,

04/15/32

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

1,295

1,083,071

3.42%,

04/15/33

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

10,687

8,156,493

3.19%,

11/15/36

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

6,230

4,260,984

4.93%,

05/15/37

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

3,147

2,594,926

Intel

Corp.

3.73%,

12/08/47

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

2,636

1,958,254

3.25%,

11/15/49

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

589

390,089

3.05%,

08/12/51

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

652

418,570

KLA

Corp.

4.10%,

03/15/29

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

1,872

1,778,750

3.30%,

03/01/50

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

3,175

2,230,160

5.25%,

07/15/62

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

1,752

1,610,189

Lam

Research

Corp.

4.88%,

03/15/49

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

1,600

1,475,454

2.88%,

06/15/50

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

10

6,520

Micron

Technology,

Inc.,

2.70%,

04/15/32

..

827

601,821

NXP

BV

5.55%,

12/01/28

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

344

336,690

4.30%,

06/18/29

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

5,312

4,779,140

3.40%,

05/01/30

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

2,477

2,073,942

2.50%,

05/11/31

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

5,016

3,751,968

2.65%,

02/15/32

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

2,358

1,751,994

5.00%,

01/15/33

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

1,784

1,587,216

QUALCOMM,

Inc.,

4.50%,

05/20/52

.....

357

306,159

TSMC

Arizona

Corp.,

4.25%,

04/22/32

....

926

856,087

TSMC

Global

Ltd.,

4.63%,

07/22/32

(b)

.....

320

304,525

43,359,225

Software

—

0.9%

Autodesk,

Inc.,

2.40%,

12/15/31

........

2,134

1,659,838

Microsoft

Corp.,

2.53%,

06/01/50

.......

2,406

1,571,944

Oracle

Corp.

3.90%,

05/15/35

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

1,976

1,513,785

3.80%,

11/15/37

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

2,558

1,855,876

6.13%,

07/08/39

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

387

354,574

3.60%,

04/01/40

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

6,720

4,560,917

5.38%,

07/15/40

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

1,030

858,384

3.65%,

03/25/41

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

1,387

942,361

4.13%,

05/15/45

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

5,375

3,693,319

4.00%,

07/15/46

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

2,444

1,651,708

4.00%,

11/15/47

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

109

73,036

3.60%,

04/01/50

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

2,462

1,540,480

4.38%,

05/15/55

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

1,071

733,060

Roper

Technologies,

Inc.,

2.95%,

09/15/29

.

691

581,719

Salesforce,

Inc.,

3.05%,

07/15/61

.......

1,739

1,085,142

ServiceNow,

Inc.,

1.40%,

09/01/30

......

3,012

2,217,617

VMware,

Inc.

1.80%,

08/15/28

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

416

329,796

2.20%,

08/15/31

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

4,586

3,337,990

Workday,

Inc.,

3.80%,

04/01/32

........

615

533,809

29,095,355

Specialty

Retail

—

0.2%

Home

Depot,

Inc.

(The),

2.75%,

09/15/51

..

725

460,986

InRetail

Consumer,

3.25%,

03/22/28

(b)

....

635

522,684

Lowe's

Cos.,

Inc.

1.30%,

04/15/28

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

1,085

875,838

3.65%,

04/05/29

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

2,210

1,991,615

4.50%,

04/15/30

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

2,089

1,952,928

5,804,051

Technology

Hardware,

Storage

&

Peripherals

—

0.3%

Apple,

Inc.

4.50%,

02/23/36

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

334

323,425

3.85%,

05/04/43

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

940

788,662

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

31

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Technology

Hardware,

Storage

&

Peripherals

(continued)

2.40%,

08/20/50

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

USD

2,683

$

1,665,198

2.80%,

02/08/61

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

2,055

1,279,327

4.10%,

08/08/62

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

43

35,250

Dell

International

LLC

4.90%,

10/01/26

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

1,362

1,312,056

8.35%,

07/15/46

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

66

71,188

3.45%,

12/15/51

(b)

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

554

314,955

Hewlett

Packard

Enterprise

Co.,

6.35%,

10/15/45

(c)

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

444

403,080

HP,

Inc.

2.65%,

06/17/31

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

535

392,583

5.50%,

01/15/33

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

1,022

906,943

Seagate

HDD

Cayman,

4.09%,

06/01/29

..

252

202,293

Western

Digital

Corp.,

2.85%,

02/01/29

...

2,940

2,284,792

9,979,752

Thrifts

&

Mortgage

Finance

—

0.0%

BPCE

SA,

2.70%,

10/01/29

(b)

..........

1,001

828,774

Tobacco

—

0.2%

Altria

Group,

Inc.

3.13%,

06/15/31

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

EUR

2,880

2,302,366

3.40%,

02/04/41

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

USD

1,968

1,240,933

3.88%,

09/16/46

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

994

628,495

BAT

Capital

Corp.,

5.28%,

04/02/50

.....

863

636,087

Philip

Morris

International,

Inc.,

1.45%,

08/01/39

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

EUR

2,600

1,427,269

Reynolds

American,

Inc.,

5.85%,

08/15/45

..

USD

1,002

785,960

7,021,110

Trading

Companies

&

Distributors

—

0.1%

United

Rentals

North

America,

Inc.,

3.88%,

11/15/27

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

1,880

1,682,309

Wireless

Telecommunication

Services

—

0.5%

Rogers

Communications,

Inc.

3.80%,

03/15/32

(b)

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

5,525

4,778,304

4.30%,

02/15/48

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

466

352,067

4.55%,

03/15/52

(b)

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

2,557

2,039,390

T-Mobile

USA,

Inc.

2.63%,

04/15/26

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

527

477,578

2.63%,

02/15/29

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

2,068

1,707,424

3.88%,

04/15/30

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

5,262

4,667,476

2.88%,

02/15/31

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

3,642

2,934,869

Vodafone

Group

plc,

7.88%,

02/15/30

....

507

554,469

17,511,577

Total

Corporate

Bonds

—

28.7%

(Cost:

$1,114,729,473)

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

948,527,028

Foreign

Agency

Obligations

Chile

—

0.0%

Empresa

Nacional

del

Petroleo

,

3.75%

,

08/05/26

(d)

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

308

274,851

Colombia

—

0.0%

Ecopetrol

SA

4.13%,

01/16/25

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

615

560,150

6.88%,

04/29/30

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

1,358

1,140,720

Empresas

Publicas

de

Medellin

ESP

(b)

4.25%,

07/18/29

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

276

197,685

4.38%,

02/15/31

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

255

177,384

2,075,939

Mexico

—

0.1%

Petroleos

Mexicanos

4.88%,

01/18/24

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

308

297,528

Series

13-2,

7.19%,

09/12/24

........

MXN

72

320,277

Security

Par

(000)

Par

(000)

Value

Mexico

(continued)

6.88%,

10/16/25

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

USD

371

$

348,091

8.75%,

06/02/29

(b)

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

1,078

914,241

6.70%,

02/16/32

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

507

354,089

5.50%,

06/27/44

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

167

87,174

6.75%,

09/21/47

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

228

126,540

2,447,940

Total

Foreign

Agency

Obligations

—

0.1%

(Cost:

$5,648,776)

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

4,798,730

Foreign

Government

Obligations

Colombia

—

0.0%

Republic

of

Colombia

4.50%,

03/15/29

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

963

788,637

7.00%,

03/26/31

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

COP

2,581,000

395,956

7.25%,

10/18/34

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

2,248,000

323,022

4.13%,

02/22/42

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

USD

200

113,000

4.13%,

05/15/51

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

284

151,550

1,772,165

Indonesia

—

0.1%

Republic

of

Indonesia

2.85%,

02/14/30

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

298

254,659

3.05%,

03/12/51

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

2,624

1,738,689

1,993,348

Mexico

—

0.3%

United

Mexican

States

2.66%,

05/24/31

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

4,749

3,642,483

8.50%,

11/18/38

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

MXN

339

1,521,771

4.50%,

01/31/50

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

USD

5,805

4,164,362

9,328,616

Panama

—

0.1%

Republic

of

Panama

3.88%,

03/17/28

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

1,275

1,155,310

4.50%,

04/01/56

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

2,439

1,634,587

2,789,897

Peru

—

0.1%

Republic

of

Peru

4.13%,

08/25/27

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

536

506,286

3.55%,

03/10/51

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

2,119

1,408,870

1,915,156

Philippines

—

0.1%

Republic

of

Philippines

3.00%,

02/01/28

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

3,147

2,864,116

3.20%,

07/06/46

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

2,747

1,833,925

4,698,041

Russia

—

0.0%

Russian

Federation,

6.10%

,

07/18/35

(g)(h)

...

RUB

257,079

1,345,181

Uruguay

—

0.1%

Oriental

Republic

of

Uruguay

4.38%,

10/27/27

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

USD

1,813

1,784,747

5.10%,

06/18/50

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

1,369

1,246,557

3,031,304

Total

Foreign

Government

Obligations

—

0.8%

(Cost:

$36,735,225)

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

26,873,708

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

32

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Municipal

Bonds

California

-

0.4%

Bay

Area

Toll

Authority

,

Series

2010S-1,

RB,

7.04%, 04/01/50

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

USD

1,925

$

2,367,818

Los

Angeles

Community

College

District

,

Series

2010E,

GO,

6.60%, 08/01/42

.........

980

1,102,804

Los

Angeles

Unified

School

District

,

Series

2010RY,

GO,

6.76%, 07/01/34

........

2,505

2,758,753

State

of

California

Series

2018,

GO,

4.60%, 04/01/38

.....

4,110

3,824,413

Series

2009,

GO,

7.55%, 04/01/39

.....

1,300

1,599,201

University

of

California

,

Series

2012AD,

RB,

4.86%, 05/15/12

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

425

353,166

12,006,155

Georgia

-

0.0%

Municipal

Electric

Authority

of

Georgia

,

Series

2010-A,

RB,

6.64%, 04/01/57

........

674

708,241

Illinois

-

0.2%

State

of

Illinois

,

Series

2003,

GO,

5.10%, 06/01/33

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

4,725

4,491,489

Massachusetts

-

0.0%

Massachusetts

Housing

Finance

Agency

,

Series

2015A,

RB,

AMT,

4.50%, 12/01/48

230

204,051

New

Jersey

-

0.0%

New

Jersey

Turnpike

Authority

,

Series

2009F,

RB,

7.41%, 01/01/40

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

665

809,472

New

York

-

0.1%

Metropolitan

Transportation

Authority

Series

2010A,

RB,

6.67%, 11/15/39

....

270

286,144

Series

2010,

RB,

6.81%, 11/15/40

.....

730

791,702

New

York

City

Municipal

Water

Finance

Authority

,

Series

2011CC,

RB,

5.88%, 06/15/44

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

440

477,151

New

York

State

Dormitory

Authority

,

Series

2010H,

RB,

5.39%, 03/15/40

.........

320

323,722

Port

Authority

of

New

York

&

New

Jersey

,

Series

2014-181,

RB,

4.96%, 08/01/46

..

1,665

1,586,979

3,465,698

Ohio

-

0.0%

American

Municipal

Power,

Inc.

,

Series

2010A,

RB,

8.08%, 02/15/50

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

765

1,008,159

Texas

-

0.1%

City

of

San

Antonio

Electric

&

Gas

Systems

,

Series

2010A,

RB,

5.81%, 02/01/41

....

1,095

1,138,144

State

of

Texas

,

Series

2009A,

GO,

5.52%, 04/01/39

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

1,235

1,290,290

2,428,434

Total

Municipal

Bonds

—

0.8%

(Cost:

$29,311,458)

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

25,121,699

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

2.0%

Angel

Oak

Mortgage

Trust

(a)(b)

Series

2020-3,

Class

A3,

2.87%,

04/25/65

612

562,999

Series

2020-3,

Class

M1,

3.81%,

04/25/65

880

773,877

Series

2020-4,

Class

A3,

2.81%,

06/25/65

245

227,524

Angel

Oak

Mortgage

Trust

I

LLC,

Series

2019-

4,

Class

A3,

3.30%,

07/26/49

(a)(b)

......

89

88,423

Barclays

Mortgage

Loan

Trust,

Series

2022-

NQM1,

Class

A1,

4.55%,

07/25/52

(a)(b)

...

2,405

2,294,335

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

CHL

Mortgage

Pass-Through

Trust,

Series

2004-29,

Class

1A1,

(LIBOR

USD

1

Month

+

0.54%),

3.62%,

02/25/35

(a)

..........

USD

173

$

157,439

COLT

Mortgage

Loan

Trust

(a)(b)

Series

2020-2,

Class

M1,

5.25%,

03/25/65

1,283

1,161,408

Series

2020-3,

Class

A3,

2.38%,

04/27/65

152

143,459

Credit

Suisse

Mortgage

Capital

Certificates,

Series

2020-SPT1,

Class

M1,

3.39%,

04/25/65

(a)(b)

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

1,020

978,069

Deephaven

Residential

Mortgage

Trust,

Series

2020-2,

Class

A3,

2.86%,

05/25/65

(b)

....

2,000

1,921,616

GCAT

Trust,

Series

2022-NQM4,

Class

A1,

5.27%,

08/25/67

(b)(c)

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

2,441

2,366,663

Homeward

Opportunities

Fund

I

Trust

(a)(b)

Series

2020-2,

Class

A2,

2.63%,

05/25/65

1,733

1,681,893

Series

2020-2,

Class

A3,

3.20%,

05/25/65

1,237

1,170,580

Homeward

Opportunities

Fund

Trust,

Series

2022-1,

Class

A1,

5.08%,

07/25/67

(b)(c)

...

2,388

2,317,308

JPMorgan

Mortgage

Trust

(a)(b)

Series

2021-INV5,

Class

A2A,

2.50%,

12/25/51

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

19,614

15,575,599

Series

2021-INV7,

Class

A3A,

2.50%,

02/25/52

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

10,877

9,303,409

Series

2021-INV7,

Class

A4A,

2.50%,

02/25/52

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

4,034

2,725,455

Series

2021-INV7,

Class

A5A,

2.50%,

02/25/52

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

2,266

1,776,866

MFA

Trust

(b)

Series

2020-NQM1,

Class

A3,

2.30%,

08/25/49

(a)

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

403

390,170

Series

2022-NQM3,

Class

A1,

5.57%,

09/25/67

(c)

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

2,035

2,023,914

Morgan

Stanley

Residential

Mortgage

Loan

Trust,

Series

2014-1A,

Class

B3,

3.72%,

06/25/44

(a)(b)

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

121

115,502

Mortgage

Loan

Resecuritization

Trust,

Series

2009-RS1,

Class

A85,

(LIBOR

USD

1

Month

+

0.34%),

2.90%,

04/16/36

(a)(b)

........

2,015

1,890,531

MortgageIT

Trust,

Series

2004-1,

Class

A1,

(LIBOR

USD

1

Month

+

0.78%),

3.86%,

11/25/34

(a)

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

249

236,453

New

Residential

Mortgage

Loan

Trust,

Series

2019-2A,

Class

A1,

4.25%,

12/25/57

(a)(b)

.

212

202,947

OBX

Trust,

Series

2022-NQM7,

Class

A1,

5.11%,

08/25/62

(b)(c)

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

1,617

1,566,335

Prima

Capital

CRE

Securitization

Ltd.,

Series

2015-4A,

Class

C,

4.00%,

08/24/49

(b)

...

344

330,818

PRKCM

Trust

(a)(b)

Series

2021-AFC2,

Class

A1,

2.07%,

11/25/56

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

299

247,130

Series

2022-AFC1,

Class

A1A,

4.10%,

04/25/57

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

332

309,281

Series

2022-AFC2,

Class

A1,

5.33%,

08/25/57

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

2,410

2,348,847

Residential

Mortgage

Loan

Trust

(a)(b)

Series

2020-2,

Class

A2,

2.51%,

05/25/60

1,500

1,453,003

Series

2020-2,

Class

M1,

3.57%,

05/25/60

1,680

1,627,773

SG

Residential

Mortgage

Trust,

Series

2022-2,

Class

A1,

5.35%,

09/25/67

(b)(c)

........

509

493,409

Structured

Asset

Securities

Corp.

Assistance

Loan

Trust,

Series

2003-AL1,

Class

A,

3.36%,

04/25/31

(b)

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

93

91,983

Verus

Securitization

Trust

(b)

Series

2019-INV2,

Class

M1,

3.50%,

07/25/59

(a)

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

3,000

2,823,352

Series

2020-4,

Class

A3,

2.32%,

05/25/65

(c)

572

547,510

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

33

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

Series

2020-4,

Class

M1,

3.29%,

05/25/65

(a)

USD

670

$

628,216

Series

2020-5,

Class

M1,

2.60%,

05/25/65

(a)

1,700

1,447,739

Series

2020-INV1,

Class

A2,

3.04%,

03/25/60

(a)

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

902

861,857

Series

2020-INV1,

Class

A3,

3.89%,

03/25/60

(a)

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

1,000

959,547

Visio

Trust,

Series

2020-1,

Class

M1,

4.45%,

08/25/55

(a)(b)

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

2,000

1,772,512

Vista

Point

Securitization

Trust,

Series

2020-2,

Class

A3,

2.50%,

04/25/65

(a)(b)

........

587

552,436

68,148,187

Commercial

Mortgage-Backed

Securities

—

5.0%

1211

Avenue

of

the

Americas

Trust

(a)(b)

Series

2015-1211,

Class

C,

4.28%,

08/10/35

100

89,620

Series

2015-1211,

Class

D,

4.28%,

08/10/35

1,131

991,632

280

Park

Avenue

Mortgage

Trust,

Series

2017-280P,

Class

D,

(LIBOR

USD

1

Month

+

1.54%),

4.24%,

09/15/34

(a)(b)

........

640

601,385

Alen

Mortgage

Trust,

Series

2021-ACEN,

Class

D,

(LIBOR

USD

1

Month

+

3.10%),

5.92%,

04/15/34

(a)(b)

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

587

538,932

Arbor

Multifamily

Mortgage

Securities

Trust

(b)(

i

)

Series

2020-MF1,

Class

D,

1.75%,

05/15/53

1,080

745,200

Series

2020-MF1,

Class

E,

1.75%,

05/15/53

600

386,940

AREIT

LLC,

Series

2022-CRE7,

Class

A,

(1

Month

CME

Term

SOFR

+

2.24%),

5.26%,

06/17/39

(a)(b)

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

918

906,541

Ashford

Hospitality

Trust,

Series

2018-ASHF,

Class

D,

(LIBOR

USD

1

Month

+

2.10%),

4.92%,

04/15/35

(a)(b)

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

174

162,981

Atrium

Hotel

Portfolio

Trust,

Series

2017-ATRM,

Class

D,

(LIBOR

USD

1

Month

+

1.95%),

4.77%,

12/15/36

(a)(b)

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

4,050

3,755,163

BAMLL

Commercial

Mortgage

Securities

Trust

(a)(b)

Series

2017-SCH,

Class

AF,

(LIBOR

USD

1

Month

+

1.00%),

3.82%,

11/15/33

...

1,480

1,394,044

Series

2017-SCH,

Class

CL,

(LIBOR

USD

1

Month

+

1.50%),

4.32%,

11/15/32

...

1,450

1,275,797

Series

2017-SCH,

Class

DL,

(LIBOR

USD

1

Month

+

2.00%),

4.82%,

11/15/32

...

1,490

1,240,849

Series

2018-DSNY,

Class

C,

(LIBOR

USD

1

Month

+

1.35%),

4.17%,

09/15/34

...

1,000

952,132

Series

2018-DSNY,

Class

D,

(LIBOR

USD

1

Month

+

1.70%),

4.52%,

09/15/34

...

830

785,416

BANK

Series

2019-BN21,

Class

A5,

2.85%,

10/17/52

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

251

214,861

Series

2021-BN33,

Class

A5,

2.56%,

05/15/64

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

3,543

2,891,487

Series

2021-BN35,

Class

A5,

2.29%,

06/15/64

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

1,280

1,014,337

Series

2021-BN37,

Class

A5,

2.62%,

11/15/64

(a)

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

325

264,051

Bayview

Commercial

Asset

Trust

(a)(b)

Series

2005-3A,

Class

A1,

(LIBOR

USD

1

Month

+

0.48%),

3.56%,

11/25/35

...

224

204,133

Series

2005-4A,

Class

A1,

(LIBOR

USD

1

Month

+

0.45%),

3.53%,

01/25/36

...

1,597

1,447,635

Series

2006-4A,

Class

A1,

(LIBOR

USD

1

Month

+

0.35%),

3.43%,

12/25/36

...

341

312,453

BBCMS

Mortgage

Trust

Series

2017-C1,

Class

B,

4.09%,

02/15/50

2,000

1,801,567

Series

2018-TALL,

Class

A,

(LIBOR

USD

1

Month

+

0.72%),

3.54%,

03/15/37

(a)(b)

.

232

218,342

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Series

2022-C16,

Class

A5,

4.60%,

06/15/55

(a)

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

USD

394

$

375,913

Series

2022-C17,

Class

A5,

4.44%,

09/15/55

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

156

146,979

BBCMS

Trust,

Series

2015-SRCH,

Class

A1,

3.31%,

08/10/35

(b)

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

827

767,518

BB-UBS

Trust,

Series

2012-SHOW,

Class

E,

4.16%,

11/05/36

(a)(b)

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

260

229,222

Benchmark

Mortgage

Trust

Series

2018-B3,

Class

D,

3.19%,

04/10/51

(a)

(b)

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

30

21,972

Series

2018-B5,

Class

A3,

3.94%,

07/15/51

1,110

1,028,155

Series

2021-B29,

Class

A5,

2.39%,

09/15/54

576

459,541

Series

2022-B35,

Class

A5,

4.59%,

05/15/55

(a)

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

600

567,224

BOCA

Commercial

Mortgage

Trust,

Series

2022-BOCA,

Class

A,

(1

Month

CME

Term

SOFR

+

1.77%),

4.61%,

05/15/39

(a)(b)

...

472

461,931

BWAY

Mortgage

Trust

(b)

Series

2013-1515,

Class

A2,

3.45%,

03/10/33

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

419

397,104

Series

2013-1515,

Class

C,

3.45%,

03/10/33

2,810

2,554,201

Series

2013-1515,

Class

E,

3.72%,

03/10/33

100

87,839

BX

Commercial

Mortgage

Trust

(b)

Series

2019-XL,

Class

D,

(LIBOR

USD

1

Month

+

1.45%),

4.27%,

10/15/36

(a)

..

3,604

3,486,222

Series

2020-VIV2,

Class

C,

3.66%,

03/09/44

(a)

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

1,450

1,143,509

Series

2020-VIV3,

Class

B,

3.66%,

03/09/44

(a)

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

180

150,121

Series

2020-VIV4,

Class

A,

2.84%,

03/09/44

2,938

2,372,844

Series

2021-SOAR,

Class

D,

(LIBOR

USD

1

Month

+

1.40%),

4.22%,

06/15/38

(a)

..

2,114

1,986,843

Series

2021-VINO,

Class

D,

(LIBOR

USD

1

Month

+

1.35%),

4.17%,

05/15/38

(a)

..

3,600

3,365,417

Series

2021-VIV5,

Class

A,

2.84%,

03/09/44

(a)

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

2,214

1,788,172

Series

2022-CSMO,

Class

C,

(1

Month

CME

Term

SOFR

+

3.89%),

6.73%,

06/15/27

(a)

322

317,165

BX

Trust

(b)

Series

2019-OC11,

Class

A,

3.20%,

12/09/41

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

71

59,142

Series

2019-OC11,

Class

D,

4.08%,

12/09/41

(a)

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

1,832

1,495,228

Series

2021-ARIA,

Class

D,

(LIBOR

USD

1

Month

+

1.90%),

4.71%,

10/15/36

(a)

..

1,604

1,487,464

Series

2021-VIEW,

Class

D,

(LIBOR

USD

1

Month

+

2.90%),

5.72%,

06/15/36

(a)

..

2,110

1,978,845

Series

2022-GPA,

Class

A,

(1

Month

CME

Term

SOFR

+

2.17%),

4.66%,

10/15/39

(a)

3,610

3,588,660

Series

2022-GPA,

Class

D,

(1

Month

CME

Term

SOFR

+

4.06%),

6.56%,

10/15/39

(a)

360

354,228

Series

2022-LBA6,

Class

D,

(1

Month

CME

Term

SOFR

+

2.00%),

4.85%,

01/15/39

(a)

530

499,747

BXP

Trust

(a)(b)

Series

2017-CC,

Class

D,

3.67%,

08/13/37

210

173,196

Series

2017-GM,

Class

D,

3.54%,

06/13/39

140

115,330

Series

2021-601L,

Class

D,

2.87%,

01/15/44

1,052

701,564

CAMB

Commercial

Mortgage

Trust,

Series

2019-LIFE,

Class

D,

(LIBOR

USD

1

Month

+

1.75%),

4.57%,

12/15/37

(a)(b)

.........

815

783,883

Cassia

SRL,

Series

2022-1A,

Class

A,

(EURIBOR

3

Month

+

2.50%),

2.89%,

05/22/34

(a)(b)

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

EUR

1,468

1,377,924

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

34

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

CD

Mortgage

Trust

Series

2017-CD3,

Class

A4,

3.63%,

02/10/50

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

USD

280

$

260,823

Series

2017-CD5,

Class

B,

3.96%,

08/15/50

(a)

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

446

396,482

Series

2018-CD7,

Class

C,

5.01%,

08/15/51

(a)

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

4,250

3,731,875

CFCRE

Commercial

Mortgage

Trust

Series

2016-C3,

Class

A3,

3.87%,

01/10/48

110

104,552

Series

2017-C8,

Class

B,

4.20%,

06/15/50

(a)

667

601,094

Series

2018-TAN,

Class

A,

4.24%,

02/15/33

(b)

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

410

405,568

Series

2018-TAN,

Class

C,

5.29%,

02/15/33

(b)

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

840

822,029

CHC

Commercial

Mortgage

Trust,

Series

2019-CHC,

Class

B,

(LIBOR

USD

1

Month

+

1.50%),

4.32%,

06/15/34

(a)(b)

.........

1,600

1,551,996

Citigroup

Commercial

Mortgage

Trust

Series

2013-375P,

Class

C,

3.63%,

05/10/35

(a)(b)

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

245

233,669

Series

2014-GC19,

Class

C,

5.26%,

03/10/47

(a)

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

120

117,139

Series

2015-GC27,

Class

B,

3.77%,

02/10/48

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

240

224,228

Series

2016-C1,

Class

D,

5.11%,

05/10/49

(a)

(b)

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

110

92,558

Series

2017-C4,

Class

A4,

3.47%,

10/12/50

290

266,031

Series

2018-C6,

Class

A4,

4.41%,

11/10/51

460

440,088

Series

2019-PRM,

Class

D,

4.35%,

05/10/36

(b)

...................

1,800

1,770,299

Cold

Storage

Trust,

Series

2020-ICE5,

Class

A,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

11/15/37

(a)(b)

....................

1,014

988,130

Commercial

Mortgage

Trust

Series

2013-GAM,

Class

E,

3.53%,

02/10/28

(a)(b)

..................

490

450,708

Series

2014-CR15,

Class

C,

4.82%,

02/10/47

(a)

...................

423

410,151

Series

2014-CR18,

Class

A4,

3.55%,

07/15/47

....................

108

104,935

Series

2014-CR21,

Class

A3,

3.53%,

12/10/47

....................

302

290,818

Series

2015-CR24,

Class

B,

4.49%,

08/10/48

(a)

...................

1,232

1,156,399

Series

2015-LC23,

Class

A4,

3.77%,

10/10/48

....................

200

190,889

Series

2016-667M,

Class

D,

3.28%,

10/10/36

(a)(b)

..................

440

343,172

Credit

Suisse

Mortgage

Capital

Certificates

(a)(b)

Series

2019-ICE4,

Class

B,

(LIBOR

USD

1

Month

+

1.23%),

4.05%,

05/15/36

...

2,658

2,605,262

Series

2020-NET,

Class

D,

3.83%,

08/15/37

600

533,180

Series

2021-980M,

Class

D,

3.65%,

07/15/31

....................

5,810

4,827,443

CSAIL

Commercial

Mortgage

Trust

Series

2015-C2,

Class

A4,

3.50%,

06/15/57

270

257,216

Series

2015-C4,

Class

D,

3.71%,

11/15/48

(a)

1,270

1,087,809

Series

2016-C5,

Class

B,

4.46%,

11/15/48

(a)

510

475,872

Series

2016-C5,

Class

C,

4.80%,

11/15/48

(a)

1,410

1,292,291

Series

2018-CX12,

Class

A4,

4.22%,

08/15/51

(a)

...................

90

84,819

Series

2018-CX12,

Class

C,

4.90%,

08/15/51

(a)

...................

268

235,339

Series

2019-C15,

Class

A4,

4.05%,

03/15/52

....................

870

806,273

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Series

2019-C16,

Class

C,

4.24%,

06/15/52

(a)

...................

USD

649

$

538,526

Series

2019-C18,

Class

D,

2.50%,

12/15/52

(b)

...................

2,849

1,924,522

Series

2020-C19,

Class

A3,

2.56%,

03/15/53

....................

1,415

1,168,684

CSMC

Trust

(b)

Series

2017-CALI,

Class

C,

3.90%,

11/10/32

(a)

...................

370

338,353

Series

2017-PFHP,

Class

A,

(LIBOR

USD

1

Month

+

0.95%),

3.77%,

12/15/30

(a)

..

530

525,433

Series

2017-TIME,

Class

A,

3.65%,

11/13/39

230

194,490

Series

2022-NWPT,

Class

A,

(1

Month

CME

Term

SOFR

+

3.14%),

5.99%,

09/15/35

(a)

1,017

1,008,830

DBGS

Mortgage

Trust,

Series

2018-5BP,

Class

B,

(LIBOR

USD

1

Month

+

0.98%),

3.80%,

06/15/33

(a)(b)

....................

610

577,866

DBJPM

Mortgage

Trust,

Series

2016-C1,

Class

A4,

3.28%,

05/10/49

..............

240

223,392

DBUBS

Mortgage

Trust

(b)

Series

2017-BRBK,

Class

A,

3.45%,

10/10/34

....................

531

500,945

Series

2017-BRBK,

Class

D,

3.65%,

10/10/34

(a)

...................

360

326,672

Extended

Stay

America

Trust

(a)(b)

Series

2021-ESH,

Class

B,

(LIBOR

USD

1

Month

+

1.38%),

4.20%,

07/15/38

...

5,556

5,346,982

Series

2021-ESH,

Class

D,

(LIBOR

USD

1

Month

+

2.25%),

5.07%,

07/15/38

...

2,079

1,990,633

GCT

Commercial

Mortgage

Trust

(a)(b)

Series

2021-GCT,

Class

A,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

02/15/38

...

410

395,455

Series

2021-GCT,

Class

C,

(LIBOR

USD

1

Month

+

1.70%),

4.52%,

02/15/38

...

2,060

1,958,448

GS

Mortgage

Securities

Corp.

II,

Series

2005-

ROCK,

Class

A,

5.37%,

05/03/32

(b)

.....

800

778,607

GS

Mortgage

Securities

Corp.

Trust

(b)

Series

2017-GPTX,

Class

A,

2.86%,

05/10/34

....................

570

538,644

Series

2022-ECI,

Class

A,

(1

Month

CME

Term

SOFR

+

2.19%),

5.04%,

08/15/39

(a)

980

971,410

Series

2022-SHIP,

Class

A,

(1

Month

CME

Term

SOFR

+

0.73%),

3.58%,

08/15/36

(a)

1,070

1,051,977

GS

Mortgage

Securities

Trust

Series

2012-GCJ9,

Class

C,

4.45%,

11/10/45

(a)(b)

..................

380

378,489

Series

2014-GC20,

Class

B,

4.53%,

04/10/47

(a)

...................

400

380,314

Series

2015-GC32,

Class

C,

4.56%,

07/10/48

(a)

...................

170

156,070

Series

2015-GS1,

Class

A3,

3.73%,

11/10/48

....................

150

142,561

Series

2019-GSA1,

Class

C,

3.93%,

11/10/52

(a)

...................

110

87,290

HMH

Trust,

Series

2017-NSS,

Class

A,

3.06%,

07/05/31

(b)

.....................

1,890

1,804,942

ILPT

Commercial

Mortgage

Trust,

Series

2022-

LPF2,

Class

A,

(1

Month

CME

Term

SOFR

+

2.25%),

4.49%,

10/15/39

(a)(b)

.........

1,830

1,824,326

IMT

Trust

(b)

Series

2017-APTS,

Class

AFX,

3.48%,

06/15/34

....................

440

421,034

Series

2017-APTS,

Class

DFX,

3.61%,

06/15/34

(a)

...................

730

677,925

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

35

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

INTOWN

Mortgage

Trust,

Series

2022-STAY,

Class

A,

(1

Month

CME

Term

SOFR

+

2.49%),

5.33%,

08/15/37

(a)(b)

.........

USD

1,079

$

1,066,839

JPMBB

Commercial

Mortgage

Securities

Trust

(a)

Series

2014-C22,

Class

B,

4.70%,

09/15/47

882

831,685

Series

2015-C33,

Class

D1,

4.27%,

12/15/48

(b)

...................

553

471,924

JPMCC

Commercial

Mortgage

Securities

Trust

Series

2017-JP6,

Class

A5,

3.49%,

07/15/50

270

249,919

Series

2017-JP7,

Class

B,

4.05%,

09/15/50

90

77,221

Series

2019-COR5,

Class

A3,

3.12%,

06/13/52

....................

390

344,468

JPMDB

Commercial

Mortgage

Securities

Trust,

Series

2018-C8,

Class

A4,

4.21%,

06/15/51

200

188,539

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series

2015-JP1,

Class

C,

4.88%,

01/15/49

(a)

...................

730

663,834

Series

2018-AON,

Class

A,

4.13%,

07/05/31

(b)

...................

413

403,363

Series

2018-PHH,

Class

A,

(LIBOR

USD

1

Month

+

1.21%),

4.03%,

06/15/35

(a)(b)

.

1,832

1,777,960

Series

2020-609M,

Class

D,

(LIBOR

USD

1

Month

+

2.77%),

5.59%,

10/15/33

(a)(b)

.

1,300

1,221,253

Series

2021-MHC,

Class

D,

(LIBOR

USD

1

Month

+

1.70%),

4.52%,

04/15/38

(a)(b)

.

1,550

1,464,518

Series

2022-NXSS,

Class

A,

(1

Month

CME

Term

SOFR

+

2.18%),

5.13%,

08/15/39

(a)

(b)

.........................

1,472

1,461,211

Series

2022-OPO,

Class

D,

3.56%,

01/05/39

(a)(b)

..................

790

619,844

MAD

Mortgage

Trust,

Series

2017-330M,

Class

D,

4.11%,

08/15/34

(a)(b)

.............

300

274,735

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series

2015-C23,

Class

A4,

3.72%,

07/15/50

....................

248

237,314

Series

2015-C23,

Class

D,

4.28%,

07/15/50

(a)(b)

..................

116

100,020

Series

2015-C25,

Class

B,

4.68%,

10/15/48

(a)

...................

620

584,946

Series

2015-C25,

Class

C,

4.68%,

10/15/48

(a)

...................

320

295,372

Morgan

Stanley

Capital

I

Trust

Series

2017-H1,

Class

B,

4.08%,

06/15/50

3,302

2,959,691

Series

2017-H1,

Class

C,

4.28%,

06/15/50

(a)

71

61,470

Series

2017-HR2,

Class

D,

2.73%,

12/15/50

1,360

970,273

Series

2018-H3,

Class

A5,

4.18%,

07/15/51

37

34,772

Series

2018-H4,

Class

C,

5.24%,

12/15/51

(a)

150

131,980

Series

2018-L1,

Class

A3,

4.14%,

10/15/51

120

112,387

Series

2018-MP,

Class

A,

4.42%,

07/11/40

(a)

(b)

.........................

3,761

3,328,929

Series

2018-SUN,

Class

A,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

07/15/35

(a)(b)

.

300

293,408

Series

2019-L2,

Class

A4,

4.07%,

03/15/52

347

322,420

MTN

Commercial

Mortgage

Trust,

Series

2022-

LPFL,

Class

A,

(1

Month

CME

Term

SOFR

+

1.40%),

4.24%,

03/15/39

(a)(b)

.........

1,178

1,145,633

Natixis

Commercial

Mortgage

Securities

Trust

(b)

Series

2018-FL1,

Class

A,

(LIBOR

USD

1

Month

+

0.95%),

3.77%,

06/15/35

(a)

..

100

96,509

Series

2018-SOX,

Class

A,

4.40%,

06/17/38

886

802,992

Series

2019-LVL,

Class

D,

4.44%,

08/15/38

310

243,521

One

Market

Plaza

Trust,

Series

2017-1MKT,

Class

D,

4.15%,

02/10/32

(b)

..........

920

862,468

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

RIAL

Issuer

Ltd.,

Series

2022-FL8,

Class

A,

(1

Month

CME

Term

SOFR

+

2.25%),

5.27%,

01/19/37

(a)(b)

....................

USD

3,142

$

3,105,697

Scorpio

European

Loan

Conduit

No.

34

DAC,

Series

34A,

Class

C,

(Sterling

Overnight

Index

Average

+

2.22%),

4.41%,

05/17/29

(a)

(b)

...........................

GBP

252

274,400

SG

Commercial

Mortgage

Securities

Trust,

Series

2019-PREZ,

Class

D,

3.59%,

09/15/39

(a)(b)

....................

USD

460

350,800

SLG

Office

Trust,

Series

2021-OVA,

Class

A,

2.59%,

07/15/41

(b)

................

3,398

2,722,815

SMRT,

Series

2022-MINI,

Class

D,

(1

Month

CME

Term

SOFR

+

1.95%),

4.80%,

01/15/39

(a)(b)

....................

4,049

3,795,604

Taubman

Centers

Commercial

Mortgage

Trust,

Series

2022-DPM,

Class

A,

(1

Month

CME

Term

SOFR

+

2.19%),

5.03%,

05/15/37

(a)(b)

1,330

1,298,723

Taurus

UK

DAC,

Series

2021-UK4A,

Class

D,

(Sterling

Overnight

Index

Average

+

2.10%),

4.29%,

08/17/31

(a)(b)

...............

GBP

744

765,298

TPGI

Trust,

Series

2021-DGWD,

Class

D,

(LIBOR

USD

1

Month

+

1.50%),

4.32%,

06/15/26

(a)(b)

....................

USD

3,400

3,169,957

UBS

Commercial

Mortgage

Trust,

Series

2018-

C12,

Class

B,

4.79%,

08/15/51

(a)

......

1,160

1,057,525

VMC

Finance

LLC,

Series

2021-FL4,

Class

A,

(LIBOR

USD

1

Month

+

1.10%),

4.09%,

06/16/36

(a)(b)

....................

3,442

3,387,035

VNDO

Trust,

Series

2016-350P,

Class

D,

4.03%,

01/10/35

(a)(b)

...............

710

596,095

Wells

Fargo

Commercial

Mortgage

Trust

Series

2016-C32,

Class

A3FL,

(LIBOR

USD

1

Month

+

1.42%),

3.80%,

01/15/59

(a)

.

639

637,863

Series

2016-C34,

Class

A3FL,

(LIBOR

USD

1

Month

+

1.04%),

3.98%,

06/15/49

(a)(b)

390

378,522

Series

2017-C42,

Class

B,

4.00%,

12/15/50

(a)

...................

1,500

1,326,336

Series

2017-HSDB,

Class

A,

(LIBOR

USD

1

Month

+

0.85%),

3.62%,

12/13/31

(a)(b)

.

501

493,889

Series

2018-1745,

Class

A,

3.87%,

06/15/36

(a)(b)

..................

110

96,789

Series

2018-C45,

Class

C,

4.73%,

06/15/51

309

269,430

Series

2018-C46,

Class

B,

4.63%,

08/15/51

429

385,988

Series

2018-C48,

Class

B,

4.90%,

01/15/52

(a)

...................

766

700,417

Series

2019-C49,

Class

B,

4.55%,

03/15/52

1,688

1,509,928

Series

2019-C49,

Class

C,

4.87%,

03/15/52

(a)

...................

1,270

1,103,574

Series

2019-C50,

Class

B,

4.19%,

05/15/52

2,639

2,319,425

Series

2020-SDAL,

Class

D,

(LIBOR

USD

1

Month

+

2.09%),

4.91%,

02/15/37

(a)(b)

.

720

680,248

Series

2021-FCMT,

Class

D,

(LIBOR

USD

1

Month

+

3.50%),

6.32%,

05/15/31

(a)(b)

.

1,890

1,767,600

165,805,934

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.4%

(a)

245

Park

Avenue

Trust,

Series

2017-245P,

Class

XA,

0.27%,

06/05/37

(b)

.........

11,000

82,805

BANK

Series

2019-BN20,

Class

XB,

0.47%,

09/15/62

....................

8,371

178,181

Series

2021-BN33,

Class

XA,

1.17%,

05/15/64

....................

12,276

740,368

Series

2021-BN33,

Class

XB,

0.59%,

05/15/64

....................

81,230

2,913,996

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

36

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Interest

Only

Commercial

Mortgage-Backed

Securities

(continued)

Bank

of

America

Merrill

Lynch

Commercial

Mortgage

Trust

Series

2017-BNK3,

Class

XB,

0.74%,

02/15/50

....................

USD

4,185

$

95,453

Series

2017-BNK3,

Class

XD,

1.39%,

02/15/50

(b)

...................

2,000

92,578

BBCMS

Trust,

Series

2015-SRCH,

Class

XA,

1.08%,

08/10/35

(b)

................

6,856

227,127

BB-UBS

Trust,

Series

2012-SHOW,

Class

XA,

0.73%,

11/05/36

(b)

................

65,905

759,858

Benchmark

Mortgage

Trust

Series

2019-B9,

Class

XA,

1.20%,

03/15/52

3,031

148,528

Series

2020-B17,

Class

XB,

0.65%,

03/15/53

....................

1,560

46,505

Series

2021-B23,

Class

XA,

1.38%,

02/15/54

....................

5,776

401,269

Series

2021-B24,

Class

XA,

1.27%,

03/15/54

....................

19,400

1,226,914

BX

Trust,

Series

2022-GPA,

Class

XCP,

1.03%,

10/15/39

(b)

.....................

19,914

175,639

CFCRE

Commercial

Mortgage

Trust,

Series

2016-C4,

Class

XB,

0.85%,

05/10/58

...

2,030

45,722

Citigroup

Commercial

Mortgage

Trust,

Series

2020-420K,

Class

X,

0.91%,

11/10/42

(b)

..

10,100

525,631

Commercial

Mortgage

Trust

Series

2013-CR6,

Class

XA,

1.12%,

03/10/46

....................

13,926

365

Series

2015-3BP,

Class

XA,

0.17%,

02/10/35

(b)

...................

40,878

83,264

Series

2018-COR3,

Class

XD,

1.75%,

05/10/51

(b)

...................

770

56,787

CSAIL

Commercial

Mortgage

Trust

Series

2017-CX10,

Class

XB,

0.26%,

11/15/50

....................

3,170

34,982

Series

2019-C16,

Class

XA,

1.71%,

06/15/52

....................

6,715

515,294

Series

2019-C17,

Class

XA,

1.50%,

09/15/52

....................

2,056

131,041

Series

2019-C17,

Class

XB,

0.70%,

09/15/52

....................

4,040

129,311

DBGS

Mortgage

Trust,

Series

2019-1735,

Class

X,

0.43%,

04/10/37

(b)

..........

5,975

104,059

DBJPM

Mortgage

Trust,

Series

2017-C6,

Class

XD,

1.00%,

06/10/50

..............

3,040

111,718

GS

Mortgage

Securities

Trust

Series

2019-GSA1,

Class

XA,

0.95%,

11/10/52

....................

5,333

232,511

Series

2020-GSA2,

Class

XA,

1.84%,

12/12/53

(b)

...................

4,086

389,162

JPMBB

Commercial

Mortgage

Securities

Trust,

Series

2014-C22,

Class

XA,

0.96%,

09/15/47

......................

852

9,660

JPMDB

Commercial

Mortgage

Securities

Trust,

Series

2016-C4,

Class

XC,

0.75%,

12/15/49

(b)

.....................

1,800

43,762

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series

2013-LC11,

Class

XB,

0.65%,

04/15/46

....................

4,040

11,258

Series

2016-JP3,

Class

XC,

0.75%,

08/15/49

(b)

...................

4,330

102,280

Ladder

Capital

Commercial

Mortgage

Trust,

Series

2013-GCP,

Class

XA,

1.33%,

02/15/36

(b)

.....................

2,840

135,975

Security

Par

(000)

Par

(000)

Value

Interest

Only

Commercial

Mortgage-Backed

Securities

(continued)

Morgan

Stanley

Capital

I

Trust

Series

2017-H1,

Class

XD,

2.31%,

06/15/50

(b)

...................

USD

3,030

$

241,077

Series

2019-H6,

Class

XB,

0.87%,

06/15/52

5,210

207,612

Series

2019-L2,

Class

XA,

1.17%,

03/15/52

2,010

99,074

Olympic

Tower

Mortgage

Trust,

Series

2017-

OT,

Class

XA,

0.51%,

05/10/39

(b)

......

10,700

170,343

One

Market

Plaza

Trust

(b)

Series

2017-1MKT,

Class

XCP,

0.00%,

02/10/32

....................

17,050

488

Series

2017-1MKT,

Class

XNCP,

0.22%,

02/10/32

(

i

)

....................

3,410

8,968

UBS

Commercial

Mortgage

Trust

Series

2019-C17,

Class

XA,

1.61%,

10/15/52

....................

6,690

484,766

Series

2019-C18,

Class

XA,

1.16%,

12/15/52

....................

7,161

340,665

Wells

Fargo

Commercial

Mortgage

Trust

Series

2016-BNK1,

Class

XD,

1.39%,

08/15/49

(b)

...................

1,180

45,930

Series

2019-C50,

Class

XA,

1.60%,

05/15/52

....................

12,492

817,407

12,168,333

Total

Non-Agency

Mortgage-Backed

Securities

—

7.4%

(Cost:

$276,893,487)

.............................

246,122,454

Beneficial

Interest

(000)

Other

Interests

(j)

Capital

Markets

—

0.0%

(g)(h)(i)

Lehman

Brothers

Holdings,

Inc.

.........

16,030

—

Total

Other

Interests

—

0.0%

(Cost:

$—)

....................................

—

Par

(000)

Pa

r

(

000)

Preferred

Securities

(a)(e)

Capital

Trusts

—

0.2%

Banks

—

0.0%

Bank

of

America

Corp.,

Series

FF,

(LIBOR

USD

3

Month

+

2.93%),

5.88%

...........

1,306

1,119,895

Citigroup,

Inc.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.42%),

3.88%

........................

1,095

902,970

2,022,865

Capital

Markets

—

0.2%

Bank

of

New

York

Mellon

Corp.

(The),

Series

F,

(LIBOR

USD

3

Month

+

3.13%),

4.63%

..

1,089

959,956

Charles

Schwab

Corp.

(The),

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%),

4.00%

.....

1,998

1,467,697

State

Street

Corp.

Series

F,

(LIBOR

USD

3

Month

+

3.60%),

6.89%

......................

370

366,581

Series

H,

(LIBOR

USD

3

Month

+

2.54%),

5.63%

......................

3,780

3,487,050

6,281,284

Total

Preferred

Securities

—

0.2%

(Cost:

$9,711,082)

..............................

8,304,149

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

37

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

U.S.

Government

Sponsored

Agency

Securities

Agency

Obligations

—

0.1%

Federal

National

Mortgage

Association,

6.63%, 11/15/30

.................

USD

1,500

$

1,751,797

Collateralized

Mortgage

Obligations

—

0.0%

Federal

Home

Loan

Mortgage

Corp.

Series

1591,

Class

PK,

6.35%, 10/15/23

.

31

31,651

Series

2996,

Class

MK,

5.50%, 06/15/35

.

3

3,091

Federal

National

Mortgage

Association,

Series

2005-29,

Class

WB,

4.75%, 04/25/35

...

25

25,064

59,806

Commercial

Mortgage-Backed

Securities

—

0.1%

Federal

Home

Loan

Mortgage

Corp.

Multifamily

WI

Certificates,

Series

K151,

Class

A2,

3.80%, 12/25/32

.................

1,135

1,058,938

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes,

Series

2018-K80,

Class

B,

4.38%, 08/25/50

(a)(b)

...............

235

217,508

Federal

National

Mortgage

Association

ACES

Variable

Rate

Notes,

Series

2006-M2,

Class

A2A,

5.27%, 10/25/32

(a)

............

2,019

1,979,193

3,255,639

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.1%

(a)

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates,

Series

KL06,

Class

XFX,

1.47%, 12/25/29

1,480

100,653

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates

Variable

Rate

Notes

Series

K120,

Class

X1,

1.13%, 10/25/30

.

41,174

2,549,068

Series

K121,

Class

X1,

1.12%, 10/25/30

.

3,072

187,363

Series

KL05,

Class

X1P,

1.02%, 06/25/29

13,486

683,352

Government

National

Mortgage

Association

Variable

Rate

Notes

Series

2013-30,

0.58%, 09/16/53

......

888

12,564

Series

2013-78,

0.31%, 10/16/54

......

1,132

14,885

Series

2015-22,

0.54%, 03/16/55

......

1,024

19,067

Series

2015-37,

0.58%, 10/16/56

......

175

4,855

Series

2015-48,

0.91%, 02/16/50

......

124

3,169

Series

2016-96,

0.77%, 12/16/57

......

787

29,158

3,604,134

Mortgage-Backed

Securities

—

36.5%

Federal

Home

Loan

Mortgage

Corp.

2.50%, 01/01/29

-

04/01/31

..........

3,362

3,123,538

3.00%, 09/01/27

-

12/01/46

..........

4,104

3,798,765

3.50%, 04/01/42

-

01/01/48

..........

4,341

4,014,178

4.00%, 08/01/40

-

12/01/45

..........

1,692

1,611,324

4.50%, 02/01/39

-

04/01/49

..........

13,361

13,028,650

5.00%, 07/01/35

-

11/01/48

..........

2,053

2,068,034

5.50%, 05/01/36

-

06/01/41

..........

1,269

1,311,197

6.00%, 11/01/29

-

12/01/32

..........

3

2,810

Federal

National

Mortgage

Association

4.00%, 01/01/41

.................

81

77,111

7.00%, 06/01/32

.................

7

7,428

Government

National

Mortgage

Association

2.00%, 08/20/50

-

02/20/51

..........

37,068

31,117,164

2.00%, 10/15/52

(k)

................

18,370

15,294,543

2.50%, 04/20/51

-

07/20/52

..........

41,904

36,133,193

2.50%, 10/15/52

(k)

................

14,438

12,403,990

3.00%, 12/20/44

-

01/20/52

..........

25,048

22,223,479

3.00%, 10/15/52

-

11/15/52

(k)

.........

35,512

31,374,203

3.50%, 01/15/42

-

04/20/48

..........

9,119

8,458,426

3.50%, 10/15/52

-

11/15/52

(k)

.........

35,457

32,232,958

4.00%, 04/20/39

-

05/20/50

..........

9,216

8,716,104

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

4.00%, 10/15/52

-

11/15/52

(k)

.........

USD

20,490

$

19,132,699

4.50%, 12/20/39

-

04/20/50

..........

6,654

6,493,451

4.50%, 10/15/52

-

11/15/52

(k)

.........

3,668

3,509,290

5.00%, 12/15/38

-

07/20/41

..........

2,277

2,300,828

5.00%, 10/15/52

-

11/15/52

(k)

.........

2,358

2,305,708

5.50%, 03/15/32

-

11/15/33

..........

2

2,448

6.00%, 12/15/36

.................

41

41,689

7.50%, 11/15/29

.................

—

(l)

289

Uniform

Mortgage-Backed

Securities

1.50%, 10/25/37

-

10/25/52

(k)

.........

13,321

11,403,816

1.50%, 11/01/41

-

03/01/51

..........

48,563

38,417,250

2.00%, 10/01/31

-

03/01/52

..........

217,963

178,121,984

2.00%, 10/25/37

-

10/25/52

(k)

.........

63,045

53,743,094

2.50%, 09/01/27

-

04/01/52

..........

149,976

128,542,603

2.50%, 10/25/37

-

10/25/52

(k)

.........

22,467

19,049,085

2.50%, 01/01/52

(m)

................

35,753

30,234,489

3.00%, 04/01/28

-

08/01/52

..........

91,346

81,497,479

3.00%, 10/25/52

-

11/25/52

(k)

.........

36,630

31,869,145

3.50%, 08/01/27

-

01/01/51

..........

64,047

58,809,270

3.50%, 10/25/37

-

10/25/52

(k)

.........

10,823

9,800,693

4.00%, 08/01/33

-

10/01/51

..........

58,346

55,170,895

4.00%, 10/25/52

-

11/25/52

(k)

.........

157,515

146,148,208

4.50%, 02/01/25

-

12/01/49

..........

35,098

34,331,502

4.50%, 10/25/52

-

11/25/52

(k)

.........

39,109

37,238,578

5.00%, 11/01/32

-

05/01/49

..........

3,929

3,914,108

5.00%, 10/25/52

-

11/25/52

(k)

.........

21,393

20,832,826

5.50%, 12/01/31

-

04/01/41

..........

2,993

3,072,574

6.00%, 07/01/29

-

06/01/41

..........

4,281

4,496,037

6.50%, 05/01/40

.................

876

920,065

1,208,397,198

Total

U.S.

Government

Sponsored

Agency

Securities

—

36.8%

(Cost:

$1,320,045,174)

...........................

1,217,068,574

U.S.

Treasury

Obligations

U.S.

Treasury

Bonds

4.25%, 05/15/39

-

11/15/40

..........

4,474

4,635,673

4.50%, 08/15/39

.................

1,764

1,893,888

4.38%, 11/15/39

.................

1,764

1,862,743

4.63%, 02/15/40

.................

2,710

2,946,384

1.13%, 05/15/40

-

08/15/40

..........

27,332

17,005,095

3.88%, 08/15/40

.................

2,710

2,662,787

1.38%, 11/15/40

.................

13,666

8,834,322

3.13%, 02/15/43

.................

6,784

5,831,060

2.88%, 05/15/43

-

11/15/46

..........

13,320

10,928,798

3.63%, 08/15/43

.................

6,784

6,325,815

3.75%, 11/15/43

.................

6,784

6,442,680

2.50%, 02/15/45

(m)(n)

...............

36,899

28,131,163

2.75%, 11/15/47

.................

35,670

28,533,214

3.00%, 02/15/48

(m)(n)

...............

42,206

35,532,176

2.25%, 08/15/49

-

02/15/52

..........

8,910

6,513,808

U.S.

Treasury

Notes

0.13%, 05/31/23

.................

8,561

8,338,949

2.75%, 05/31/23

.................

13,062

12,948,218

1.75%, 07/31/24

-

12/31/24

..........

110,814

105,204,241

2.13%, 07/31/24

-

05/15/25

..........

27,422

26,168,735

1.50%, 10/31/24

-

02/15/30

..........

115,480

107,358,582

2.00%, 02/15/25

-

11/15/26

..........

39,697

36,952,872

0.38%, 04/30/25

-

12/31/25

..........

102,555

92,480,025

0.75%, 05/31/26

.................

10,210

9,016,706

2.38%, 05/15/27

-

05/15/29

..........

20,263

18,527,709

0.50%, 05/31/27

.................

30,356

25,751,611

2.25%, 08/15/27

.................

45,063

41,422,755

1.25%, 03/31/28

-

05/31/28

..........

11,723

10,083,688

2.88%, 08/15/28

-

05/15/32

..........

4,894

4,577,672

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

38

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

U.S.

Treasury

Obligations

(continued)

3.13%, 11/15/28

.................

USD

5,507

$

5,232,726

2.63%, 02/15/29

.................

8,146

7,506,093

1.63%, 08/15/29

-

05/15/31

..........

8,327

7,155,431

Total

U.S.

Treasury

Obligations

—

20.8%

(Cost:

$806,783,163)

.............................

686,805,619

Total

Long-Term

Investments

—

106.9%

(Cost:

$3,991,592,869)

...........................

3,537,067,404

Short-Term

Securities

Commercial

Paper

—

0.1%

General

Motors

Financial

Co.,

Inc.,

3.98%

,

02/15/23

(o)

.....................

3,626

3,562,799

Total

Commercial

Paper

—

0.1%

(Cost:

$3,572,185)

..............................

3,562,799

Shares

Shares

Money

Market

Funds

—

4.7%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(p)(q)

.................

156,097,271

156,097,271

Total

Money

Market

Funds

—

4.7%

(Cost:

$156,097,271)

.............................

156,097,271

Total

Short-Term

Securities

—

4.8%

(Cost:

$159,669,456)

.............................

159,660,070

Total

Options

Purchased

—

0.2%

(Cost:

$3,818,779)

..............................

8,622,186

Total

Investments

Before

Options

Written

and

TBA

Sale

Commitments

—

111.9%

(Cost:

$4,155,081,104

)

...........................

3,705,349,660

Total

Options

Written

—

(0.8)%

(Premium

Received

—

$(16,038,780))

.................

(27,884,327)

Par

(000)

Pa

r

(

000)

TBA

Sale

Commitments

(k)

Mortgage-Backed

Securities

—

(7.9)%

Government

National

Mortgage

Association

2.50%

,

 10/15/52

-

11/15/52

..........

(941)

(808,271)

3.00%

,

 10/15/52

-

11/15/52

..........

(623)

(550,249)

3.50%

,

 10/15/52

-

11/15/52

..........

(4,919)

(4,473,525)

2.00%

,

 11/15/52

.................

(606)

(504,518)

Uniform

Mortgage-Backed

Securities

2.00%

,

 10/25/37

-

11/25/52

..........

(5,467)

(4,626,748)

3.00%

,

 10/25/37

-

11/25/52

..........

(38,577)

(33,606,550)

3.50%

,

 10/25/37

-

11/25/52

..........

(15,933)

(14,577,058)

1.50%

,

 11/25/37

-

11/25/52

..........

(689)

(567,893)

2.50%

,

 11/25/37

-

11/25/52

..........

(44,941)

(37,655,382)

4.00%

,

 10/25/52

-

11/25/52

..........

(142,056)

(131,778,257)

4.50%

,

 10/25/52

.................

(19,600)

(18,670,531)

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

5.00%

,

 10/25/52

.................

USD

(13,904)

$

(13,543,436)

Total

TBA

Sale

Commitments

—

(7.9)%

(Proceeds:

$(268,674,655))

........................

(261,362,418)

Total

Investments

Net

of

Options

Written

and

TBA

Sale

Commitments

—

103.2%

(Cost:

$3,870,367,66

9)

...........................

3,416,102,915

Liabilities

in

Excess

of

Other

Assets

—

(3.2)%

............

(107,119,722)

Net

Assets

—

100.0%

..............................

$

3,308,983,193

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

39

Schedule

of

Investments

(continued)

September

30,

2022

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(d)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(e)

Perpetual

security

with

no

stated

maturity

date.

(f)

Zero-coupon

bond.

(g)

Issuer

filed

for

bankruptcy

and/or

is

in

default.

(h)

Non-income

producing

security.

(i)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(j)

Other

interests

represent

beneficial

interests

in

liquidation

trusts

and

other

reorganization

or

private

entities.

(k)

Represents

or

includes

a

TBA

transaction.

(l)

Rounds

to

less

than

1,000.

(m)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

TBA

commitments.

(n)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

OTC

derivatives.

(o)

Rates

are

discount

rates

or

a

range

of

discount

rates

as

of

period

end.

(p)

Annualized

7-day

yield

as

of

period

end.

(q)

Affiliate

of

the

Fund.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

213,787,818

$

—

$

(57,690,547)

(a)

$

—

$

—

$

156,097,271

156,097,271

$

759,372

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

40

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

Long

Bond

....................................................

586

12/20/22

$

74,147

$

(3,398,095)

U.S.

Treasury

Ultra

Bond

....................................................

495

12/20/22

67,660

(3,482,172)

U.S.

Treasury

5

Year

Note

....................................................

2,523

12/30/22

271,085

(5,356,566)

(12,236,833)

Short

Contracts

Euro-BTP

...............................................................

264

12/08/22

28,973

605,924

Euro-Bund

..............................................................

16

12/08/22

2,172

49,236

Euro-

Buxl

...............................................................

24

12/08/22

3,449

323,525

Japan

10

Year

Bond

........................................................

68

12/13/22

69,677

119,512

U.S.

Treasury

10

Year

Note

...................................................

544

12/20/22

60,962

1,667,793

U.S.

Treasury

10

Year

Ultra

Note

...............................................

459

12/20/22

54,406

1,291,919

U.S.

Treasury

2

Year

Note

....................................................

184

12/30/22

37,779

2,402

3

Month

SOFR

...........................................................

680

06/20/23

162,452

151,552

4,211,863

$

(8,024,970)

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

BRL

4,012,132

USD

740,000

Societe

Generale

SA

10/17/22

$

1,282

EUR

760,000

USD

734,396

UBS

AG

10/17/22

11,118

GBP

360,000

USD

400,978

Bank

of

America

NA

10/17/22

1,097

USD

500,000

BRL

2,650,375

HSBC

Bank

plc

10/17/22

10,316

USD

370,000

BRL

1,922,657

Standard

Chartered

Bank

10/17/22

14,770

USD

490,000

CLP

470,400,000

Barclays

Bank

plc

10/17/22

4,873

USD

500,000

CLP

470,550,000

Citibank

NA

10/17/22

14,718

USD

1,149,926

EUR

1,150,000

Bank

of

New

York

Mellon

10/17/22

21,845

USD

370,000

KRW

526,917,000

Citibank

NA

10/17/22

3,624

USD

630,000

MXN

12,713,146

BNP

Paribas

SA

10/17/22

279

USD

510,000

TRY

9,553,560

Citibank

NA

10/17/22

4,203

USD

1,020,000

ZAR

18,263,043

Goldman

Sachs

International

10/17/22

12,203

USD

370,000

ZAR

6,657,219

Morgan

Stanley

&

Co.

International

plc

10/17/22

2,642

USD

990,000

COP

4,421,559,500

Barclays

Bank

plc

10/18/22

33,532

USD

2,153,706

COP

9,437,539,000

JPMorgan

Chase

Bank

NA

11/23/22

126,547

USD

6,773,118

MXN

137,497,000

HSBC

Bank

plc

11/23/22

10,213

EUR

16,600,000

GBP

14,477,939

Deutsche

Bank

AG

12/21/22

186,793

EUR

1,247,000

USD

1,210,403

Morgan

Stanley

&

Co.

International

plc

12/21/22

19,464

GBP

4,987,175

EUR

5,492,000

JPMorgan

Chase

Bank

NA

12/21/22

158,705

USD

398,229

AUD

593,000

Morgan

Stanley

&

Co.

International

plc

12/21/22

18,376

USD

1,006,758

CAD

1,329,000

Deutsche

Bank

AG

12/21/22

44,286

USD

16,926,726

EUR

16,819,000

Royal

Bank

of

Canada

12/21/22

338,802

USD

33,893,872

EUR

33,664,549

UBS

AG

12/21/22

691,840

USD

197,720

GBP

172,000

Bank

of

America

NA

12/21/22

5,437

1,736,965

AUD

940,000

USD

633,007

Bank

of

New

York

Mellon

10/17/22

(31,648)

BRL

2,585,450

USD

500,000

Societe

Generale

SA

10/17/22

(22,312)

CLP

483,000,000

USD

500,000

Citibank

NA

10/17/22

(1,879)

EUR

390,000

USD

384,390

Barclays

Bank

plc

10/17/22

(1,823)

JPY

91,144,691

USD

640,000

Bank

of

New

York

Mellon

10/17/22

(9,474)

KRW

1,062,344,000

USD

740,000

Citibank

NA

10/17/22

(1,330)

MXN

12,701,490

USD

630,000

Morgan

Stanley

&

Co.

International

plc

10/17/22

(857)

THB

14,043,622

USD

380,000

Citibank

NA

10/17/22

(7,461)

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

41

Schedule

of

Investments

(continued)

September

30,

2022

Forward

Foreign

Currency

Exchange

Contracts

(continued)

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

USD

486,358

GBP

450,000

Deutsche

Bank

AG

10/17/22

$

(16,233)

USD

398,456

GBP

360,000

JPMorgan

Chase

Bank

NA

10/17/22

(3,617)

USD

380,000

THB

14,401,658

Citibank

NA

10/17/22

(2,037)

ZAR

6,671,386

USD

370,000

Barclays

Bank

plc

10/17/22

(1,858)

ZAR

17,964,451

USD

1,020,000

Morgan

Stanley

&

Co.

International

plc

10/17/22

(28,681)

COP

2,193,619,000

USD

500,000

BNP

Paribas

SA

10/18/22

(25,479)

COP

2,217,465,600

USD

490,000

Citibank

NA

10/18/22

(10,320)

COP

3,602,640,481

USD

810,128

JPMorgan

Chase

Bank

NA

11/23/22

(36,292)

COP

1,865,516,000

USD

415,482

JPMorgan

Chase

Bank

NA

11/23/22

(14,775)

MXN

74,869,043

USD

3,690,057

Barclays

Bank

plc

11/23/22

(7,561)

MXN

14,892,750

USD

733,180

UBS

AG

11/23/22

(668)

USD

995,842

MXN

20,321,545

HSBC

Bank

plc

11/23/22

(3,690)

EUR

5,492,000

GBP

4,940,933

Morgan

Stanley

&

Co.

International

plc

12/21/22

(107,009)

IDR

6,272,008,556

USD

418,218

JPMorgan

Chase

Bank

NA

12/21/22

(10,073)

JPY

9,104,378

USD

63,719

Morgan

Stanley

&

Co.

International

plc

12/21/22

(234)

(345,311)

$

1,391,654

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

U.S.

Treasury

10

Year

Note

.....................

9

10/21/22

USD

111.00

USD

900

$

15,609

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

3

Month

SOFR

Interest

Futures

...................

29

03/10/23

USD

96.00

USD

7,250

$

(13,956)

3

Month

SOFR

Interest

Futures

...................

1,461

03/10/23

USD

96.25

USD

365,250

(483,956)

(497,912)

Put

U.S.

Treasury

2

Year

Notes

......................

19

11/25/22

USD

102.25

USD

3,800

(11,578)

U.S.

Treasury

5

Year

Note

.......................

19

11/25/22

USD

109.00

USD

1,900

(37,258)

3

Month

SOFR

Interest

Futures

...................

29

03/10/23

USD

96.00

USD

7,250

(44,044)

3

Month

SOFR

Interest

Futures

...................

1,461

03/10/23

USD

96.25

USD

365,250

(2,894,606)

(2,987,486)

$

(3,485,398)

OTC

Interest

Rate

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.96%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

09/03/24

2.96

%

USD

4,114

$

144,538

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.25%

Semi-Annual

Goldman

Sachs

International

09/23/24

3.25

USD

845

38,728

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.28%

Semi-Annual

Goldman

Sachs

International

09/23/24

3.28

USD

3,245

153,113

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

42

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Interest

Rate

Swaptions

Purchased

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.14%

Semi-Annual

BNP

Paribas

SA

09/23/25

3.14

%

USD

1,487

$

72,977

409,356

Put

10-Year

Interest

Rate

Swap

(a)

2.51%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

08/10/23

2.51

USD

41,785

3,753,875

10-Year

Interest

Rate

Swap

(a)

2.48%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

08/10/23

2.48

USD

41,785

3,835,907

10-Year

Interest

Rate

Swap

(a)

2.96%

Semi-Annual

1

day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

09/03/24

2.96

USD

4,114

282,097

10-Year

Interest

Rate

Swap

(a)

3.28%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

09/23/24

3.28

USD

3,245

180,766

10-Year

Interest

Rate

Swap

(a)

3.25%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

09/23/24

3.25

USD

845

48,218

10-Year

Interest

Rate

Swap

(a)

3.14%

Semi-Annual

1

day

SOFR

Annual

BNP

Paribas

SA

09/23/25

3.14

USD

1,487

96,358

8,197,221

$

8,606,577

(a)

Forward

settling

swaption.

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

1.82%

Annual

6

month

EURIBOR

Semi-Annual

Goldman

Sachs

International

11/11/22

1.82

%

EUR

1,303

$

(320)

10-Year

Interest

Rate

Swap

(a)

2.41%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

08/10/23

2.41

USD

52,894

(471,940)

2-Year

Interest

Rate

Swap

(a)

.

1.77%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

08/11/23

1.77

USD

183,145

(195,455)

2-Year

Interest

Rate

Swap

(a)

.

3.10%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

09/08/23

3.10

USD

203,910

(1,070,801)

(1,738,516)

Put

10-Year

Interest

Rate

Swap

(a)

6

month

EURIBOR

Semi-Annual

1.82%

Annual

Goldman

Sachs

International

11/11/22

1.82

EUR

1,303

(140,196)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.41%

Semi-Annual

Bank

of

America

NA

08/10/23

2.41

USD

52,894

(5,101,642)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.10%

Semi-Annual

Goldman

Sachs

International

08/10/23

3.10

USD

27,824

(1,547,438)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.20%

Semi-Annual

Goldman

Sachs

International

08/10/23

3.20

USD

27,824

(1,412,821)

1-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

At

Termination

3.48%

At

Termination

Goldman

Sachs

International

08/10/23

3.48

USD

752,517

(7,716,384)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.77%

Semi-Annual

Goldman

Sachs

International

08/11/23

3.77

USD

183,145

(2,451,100)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.10%

Semi-Annual

Bank

of

America

NA

09/08/23

3.10

USD

203,910

(4,290,832)

(22,660,413)

$

(24,398,929)

(a)

Forward

settling

swaption.

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

43

Schedule

of

Investments

(continued)

September

30,

2022

Centrally

Cleared

Credit

Default

Swaps

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

CDX.NA.IG.39.V1

...................

1.00

%

Quarterly

12/20/27

USD

65,952

$

206,221

$

302,438

$

(96,217)

OTC

Credit

Default

Swap

s

—

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)

Abbott

Laboratories

........

1.00

%

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

USD

1,439

$

(40,085)

$

(31,692)

$

(8,393)

Republic

of

Colombia

.......

1.00

Quarterly

Citibank

NA

12/20/27

USD

822

81,702

57,929

23,773

Republic

of

Indonesia

.......

1.00

Quarterly

Goldman

Sachs

International

12/20/27

USD

575

14,816

4,436

10,380

United

Mexican

States

......

1.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

12/20/27

USD

3,926

166,889

94,223

72,666

CMBX.NA.9.AAA

..........

0.50

Monthly

Credit

Suisse

International

09/17/58

USD

1,272

3,821

13,707

(9,886)

CMBX.NA.9.AAA

..........

0.50

Monthly

Deutsche

Bank

AG

09/17/58

USD

1,023

3,074

11,177

(8,103)

CMBX.NA.9.AAA

..........

0.50

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

USD

1,560

4,686

18,123

(13,437)

CMBX.NA.9.AAA

..........

0.50

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

USD

854

2,567

9,209

(6,642)

CMBX.NA.9.AAA

..........

0.50

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

USD

715

2,149

7,710

(5,561)

CMBX.NA.9.BBB-

.........

3.00

Monthly

Citigroup

Global

Markets,

Inc.

09/17/58

USD

440

85,649

13,972

71,677

CMBX.NA.9.BBB-

.........

3.00

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

USD

288

56,061

14,951

41,110

CMBX.NA.6.AAA

..........

0.50

Monthly

Deutsche

Bank

AG

05/11/63

USD

97

(16)

(105)

89

CMBX.NA.6.AAA

..........

0.50

Monthly

Deutsche

Bank

AG

05/11/63

USD

226

(37)

(1,265)

1,228

CMBX.NA.6.BBB-

.........

3.00

Monthly

J.P.

Morgan

Securities

LLC

05/11/63

USD

7

1,610

562

1,048

CMBX.NA.6.BBB-

.........

3.00

Monthly

J.P.

Morgan

Securities

LLC

05/11/63

USD

198

43,476

23,479

19,997

$

–

$

–

$

–

$

426,362

$

236,416

$

189,946

$

–

$

–

$

–

OTC

Credit

Default

Swap

s

—

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)

CMBX.NA.3.AM

.......

0.50

%

Monthly

Credit

Suisse

International

12/13/49

NR

USD

—

$

—

$

(1)

$

1

CMBX.NA.3.AM

.......

0.50

Monthly

Goldman

Sachs

International

12/13/49

NR

USD

—

—

(2)

2

CMBX.NA.9.BBB-

.....

3.00

Monthly

Deutsche

Bank

AG

09/17/58

BBB-

USD

352

(68,519)

(33,778)

(34,741)

CMBX.NA.9.BBB-

.....

3.00

Monthly

Deutsche

Bank

AG

09/17/58

BBB-

USD

531

(103,363)

(57,465)

(45,898)

CMBX.NA.9.BBB-

.....

3.00

Monthly

Goldman

Sachs

International

09/17/58

BBB-

USD

280

(54,506)

(29,228)

(25,278)

CMBX.NA.9.BBB-

.....

3.00

Monthly

J.P.

Morgan

Securities

LLC

09/17/58

BBB-

USD

170

(33,091)

(36,336)

3,245

CMBX.NA.9.BBB-

.....

3.00

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

BBB-

USD

207

(40,294)

(22,796)

(17,498)

CMBX.NA.9.BBB-

.....

3.00

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

BBB-

USD

210

(40,877)

(52,606)

11,729

CMBX.NA.9.BBB-

.....

3.00

Monthly

Morgan

Stanley

&

Co.

International

plc

09/17/58

BBB-

USD

240

(46,718)

237

(46,955)

CMBX.NA.10.A

.......

2.00

Monthly

Deutsche

Bank

AG

11/17/59

A

USD

4,050

(233,934)

(157,495)

(76,439)

CMBX.NA.10.A

.......

2.00

Monthly

Deutsche

Bank

AG

11/17/59

A

USD

2,020

(116,672)

(79,900)

(36,772)

CMBX.NA.10.BBB-

....

3.00

Monthly

J.P.

Morgan

Securities

LLC

11/17/59

BBB-

USD

35

(6,496)

(2,712)

(3,784)

CMBX.NA.6.BBB-

.....

3.00

Monthly

Credit

Suisse

International

05/11/63

BBB-

USD

205

(45,085)

(20,141)

(24,944)

$

(789,555)

$

(492,223)

$

(297,332)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

44

Schedule

of

Investments

(continued)

September

30,

2022

(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.

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

28

day

MXIBTIIE

Monthly

10.17%

Monthly

N/A

09/14/23

MXN

63,591

$

(9,779)

$

—

$

(9,779)

28

day

MXIBTIIE

Monthly

10.30%

Monthly

N/A

09/18/23

MXN

50,668

(5,022)

—

(5,022)

6.15%

Annual

3

month

WIBOR

Quarterly

04/11/23

(a)

04/11/24

PLN

9,343

28,140

—

28,140

2.22%

Annual

6

month

EURIBOR

Semi-Annual

N/A

09/12/24

EUR

2,549

21,693

803

20,890

2.91%

Semi-Annual

3

month

LIBOR

Quarterly

N/A

08/23/26

USD

844

38,120

—

38,120

6.87%

Annual

6

month

WIBOR

Semi-Annual

N/A

09/29/27

PLN

1,525

1,973

—

1,973

6.99%

Annual

6

month

WIBOR

Semi-Annual

N/A

09/30/27

PLN

2,197

1,058

—

1,058

7.15%

Annual

6

month

WIBOR

Semi-Annual

12/21/22

(a)

12/21/27

PLN

3,033

(3,291)

—

(3,291)

2.93%

Semi-Annual

3

month

LIBOR

Quarterly

N/A

08/24/28

USD

1,870

106,789

—

106,789

3.16%

Semi-Annual

3

month

LIBOR

Quarterly

N/A

10/03/28

USD

1,035

37,875

—

37,875

6

month

EURIBOR

Semi-Annual

1.52%

Annual

N/A

02/15/31

EUR

2,376

(243,505)

—

(243,505)

6

month

EURIBOR

Semi-Annual

1.52%

Annual

N/A

02/15/31

EUR

1,777

(182,135)

—

(182,135)

6

month

EURIBOR

Semi-Annual

1.54%

Annual

N/A

02/15/31

EUR

6,065

(614,233)

—

(614,233)

6

month

EURIBOR

Semi-Annual

1.55%

Annual

N/A

02/15/31

EUR

3,042

(305,655)

—

(305,655)

6

month

EURIBOR

Semi-Annual

1.55%

Annual

N/A

02/15/31

EUR

1,777

(177,711)

—

(177,711)

6

month

EURIBOR

Semi-Annual

1.56%

Annual

N/A

02/15/31

EUR

6,065

(604,341)

—

(604,341)

6

month

EURIBOR

Semi-Annual

1.57%

Annual

N/A

02/15/31

EUR

6,067

(600,452)

—

(600,452)

6

month

EURIBOR

Semi-Annual

1.59%

Annual

N/A

02/15/31

EUR

3,031

(294,577)

—

(294,577)

6

month

EURIBOR

Semi-Annual

1.64%

Annual

N/A

02/15/31

EUR

1,178

(109,813)

—

(109,813)

6

month

EURIBOR

Semi-Annual

1.65%

Annual

N/A

02/15/31

EUR

2,380

(221,379)

—

(221,379)

6

month

EURIBOR

Semi-Annual

1.65%

Annual

N/A

02/15/31

EUR

1,178

(109,658)

—

(109,658)

6

month

EURIBOR

Semi-Annual

1.69%

Annual

N/A

02/15/31

EUR

1,214

(109,093)

—

(109,093)

6

month

EURIBOR

Semi-Annual

1.82%

Annual

N/A

02/15/31

EUR

4,738

(379,375)

—

(379,375)

0.30%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

1,009,796

126,208

—

126,208

0.31%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

878,018

107,021

—

107,021

0.31%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

990,105

120,548

—

120,548

0.30%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

1,001,491

127,383

—

127,383

0.30%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

1,005,912

124,594

—

124,594

0.39%

Annual

1

day

TONAR

Annual

N/A

05/02/32

JPY

593,572

39,920

—

39,920

0.40%

Annual

1

day

TONAR

Annual

N/A

05/02/32

JPY

593,572

38,909

—

38,909

0.42%

Annual

1

day

TONAR

Annual

N/A

06/14/32

JPY

1,139,296

64,771

—

64,771

0.42%

Annual

1

day

TONAR

Annual

N/A

06/14/32

JPY

1,284,738

69,549

—

69,549

6

month

EURIBOR

Semi-Annual

2.44%

Annual

07/14/27

(a)

07/14/32

EUR

2,606

(77,401)

—

(77,401)

9.25%

Monthly

28

day

MXIBTIIE

Monthly

N/A

09/17/32

MXN

30,031

(5,328)

—

(5,328)

0.86%

Annual

1

day

TONAR

Annual

N/A

05/09/52

JPY

387,200

176,231

—

176,231

0.86%

Annual

1

day

TONAR

Annual

N/A

05/09/52

JPY

391,111

182,292

—

182,292

0.82%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

211,795

113,719

—

113,719

0.81%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

211,795

116,422

—

116,422

0.87%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

211,795

95,191

—

95,191

0.83%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

211,795

109,473

—

109,473

$

(2,204,869)

$

803

$

(2,205,672)

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

45

Schedule

of

Investments

(continued)

September

30,

2022

(a)

Forward

swap.

OTC

Interest

Rate

Swaps

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1.42%

Semi-Annual

1

day

CLICP

Semi-Annual

Bank

of

America

NA

04/01/23

CLP

6,530,622

$

601,500

$

—

$

601,500

1

day

CLICP

Semi-Annual

1.65%

Semi-Annual

Bank

of

America

NA

05/28/23

CLP

6,530,622

(619,903)

—

(619,903)

1

day

BZDIOVER

At

Termination

11.65%

At

Termination

JPMorgan

Chase

Bank

NA

01/02/25

BRL

3,158

(293)

—

(293)

1

day

BZDIOVER

At

Termination

11.69%

At

Termination

Citibank

NA

01/02/25

BRL

4,423

375

—

375

$

(18,321)

$

—

$

(18,321)

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

0.05

%

1

day

CLICP

.........................................

Chile

Indice

de

Camara

Promedio

Interbank

Overnight

Index

0.03

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

1

day

TONAR

........................................

Tokyo

Overnight

Average

Rate

0.73

28

day

MXIBTIIE

......................................

Mexico

Interbank

TIIE

28-Day

9.55

3

month

LIBOR

.......................................

London

Interbank

Offered

Rate

3.78

3

month

WIBOR

......................................

Warsaw

Interbank

Offered

Rate

7.21

6

month

EURIBOR

.....................................

Euro

Interbank

Offered

Rate

1.90

6

month

WIBOR

......................................

Warsaw

Interbank

Offered

Rate

7.39

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps,

OTC

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

303,241

$

—

$

1,847,076

$

(4,148,965)

$

—

OTC

Swaps

.....................................................

269,715

(525,522)

858,820

(984,527)

—

Options

Written

...................................................

N/A

N/A

3,695,232

(15,540,779)

(27,884,327)

(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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

46

Schedule

of

Investments

(continued)

September

30,

2022

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)

.....

$

—

$

—

$

—

$

—

$

4,211,863

$

—

$

4,211,863

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

1,736,965

—

—

1,736,965

Options

purchased

(b)

Investments

at

value

—

unaffiliated

(c)

...........

—

—

—

—

8,622,186

—

8,622,186

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

1,847,076

—

1,847,076

Swaps

—

OTC

Unrealized

appreciation

on

OTC

swaps;

Swap

premiums

paid

................................

—

526,660

—

—

601,875

—

1,128,535

$

—

$

526,660

$

—

$

1,736,965

$

15,283,000

$

—

$

17,546,625

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

12,236,833

$

—

$

12,236,833

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

345,311

—

—

345,311

Options

written

(b)

Options

written

at

value

.....................

—

—

—

—

27,884,327

—

27,884,327

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

96,217

—

—

4,052,748

—

4,148,965

Swaps

—

OTC

Unrealized

depreciation

on

OTC

swaps;

Swap

premiums

received

.............................

—

889,853

—

—

620,196

—

1,510,049

$

—

$

986,070

$

—

$

345,311

$

44,794,104

$

—

$

46,125,485

(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).

(b)

Includes

forward

settling

swaptions.

(c)

Includes

options

purchased

at

value

as

reported

in

the

Schedule

of

Investments.

For

the

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

—

$

—

$

(10,823,952)

$

—

$

(10,823,952)

Forward

foreign

currency

exchange

contracts

....

—

—

—

5,004,765

—

—

5,004,765

Options

purchased

(a)

....................

—

—

—

(639,249)

1,880,863

—

1,241,614

Options

written

........................

—

—

—

—

(3,591,615)

—

(3,591,615)

Swaps

..............................

—

929,652

—

—

(16,777)

(11,626,260)

(10,713,385)

$

—

$

929,652

$

—

$

4,365,516

$

(12,551,481)

$

(11,626,260)

$

(18,882,573)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

(7,935,369)

$

—

$

(7,935,369)

Forward

foreign

currency

exchange

contracts

....

—

—

—

666,753

—

—

666,753

Options

purchased

(b)

....................

—

—

—

9,240

6,697,190

—

6,706,430

Options

written

........................

—

—

—

—

(11,741,752)

—

(11,741,752)

Swaps

..............................

—

(643,193)

—

—

(1,598,429)

2,970,361

728,739

$

—

$

(643,193)

$

—

$

675,993

$

(14,578,360)

$

2,970,361

$

(11,575,199)

(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.

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

47

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

437,725,233

Average

notional

value

of

contracts

—

short

.................................................................................

$

344,481,959

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

89,827,094

Average

amounts

sold

—

in

USD

........................................................................................

$

23,416,671

Options

Average

value

of

option

contracts

purchased

................................................................................

$

294,975

Average

value

of

option

contracts

written

...................................................................................

$

897,544

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

212,975,900

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

667,831,669

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

47,481,615

Average

notional

value

—

sell

protection

...................................................................................

$

10,251,137

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

106,013,824

Average

notional

value

—

receives

fixed

rate

................................................................................

$

759,519,286

Inflation

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

916,500

Average

notional

value

—

receives

fixed

rate

................................................................................

$

64,670,815

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

552,771

$

2,547,330

Forward

foreign

currency

exchange

contracts

.................................................................

1,736,965

345,311

Options

(a)(b)

........................................................................................

8,622,186

27,884,327

Swaps

—

centrally

cleared

..............................................................................

—

331,352

Swaps

—

OTC

(c)

....................................................................................

1,128,535

1,510,049

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

12,040,457

$

32,618,369

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(568,380)

(6,364,080)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

11,472,077

$

26,254,289

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Statements

of

Assets

and

Liabilities

and

reported

in

the

Schedule

of

Investments.

(b)

Includes

forward

settling

swaptions.

(c)

Includes

unrealized

appreciation

(depreciation)

on

OTC

swaps

and

swap

premiums

(paid/received)

in

the

Statements

of

Assets

and

Liabilities.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Core

Bond

Portfolio

48

Schedule

of

Investments

(continued)

September

30,

2022

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

(b)

Net

Amount

of

Derivative

Assets

(c)(d)

Bank

of

America

NA

..............................

$

608,034

$

(608,034)

$

—

$

—

$

—

Bank

of

New

York

Mellon

...........................

21,845

(21,845)

—

—

—

Barclays

Bank

plc

................................

38,405

(11,242)

—

—

27,163

BNP

Paribas

SA

.................................

169,614

(25,479)

—

(144,135)

—

Citibank

NA

....................................

104,622

(23,027)

—

(20,000)

61,595

Citigroup

Global

Markets,

Inc.

........................

85,649

—

—

—

85,649

Credit

Suisse

International

..........................

13,708

(13,708)

—

—

—

Deutsche

Bank

AG

...............................

243,573

(243,573)

—

—

—

Goldman

Sachs

International

........................

8,037,628

(8,037,628)

—

—

—

HSBC

Bank

plc

..................................

20,529

(3,690)

—

—

16,839

J.P.

Morgan

Securities

LLC

..........................

48,331

(42,832)

—

—

5,499

JPMorgan

Chase

Bank

NA

..........................

285,252

(105,135)

—

—

180,117

Morgan

Stanley

&

Co.

International

plc

..................

737,075

(302,276)

—

(434,799)

—

Royal

Bank

of

Canada

.............................

338,802

—

—

—

338,802

Societe

Generale

SA

..............................

1,282

(1,282)

—

—

—

Standard

Chartered

Bank

...........................

14,770

—

—

—

14,770

UBS

AG

......................................

702,958

(668)

—

—

702,290

$

11,472,077

$

(9,440,419)

$

—

$

(598,934)

$

1,432,724

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

(b)

Cash

Collateral

Pledged

Net

Amount

of

Derivative

Liabilities

(d)(e)

Bank

of

America

NA

..............................

$

11,555,118

$

(608,034)

$

(10,923,115)

$

—

$

23,969

Bank

of

New

York

Mellon

...........................

41,122

(21,845)

—

—

19,277

Barclays

Bank

plc

................................

11,242

(11,242)

—

—

—

BNP

Paribas

SA

.................................

25,479

(25,479)

—

—

—

Citibank

NA

....................................

23,027

(23,027)

—

—

—

Credit

Suisse

International

..........................

54,972

(13,708)

—

—

41,264

Deutsche

Bank

AG

...............................

548,194

(243,573)

(304,621)

—

—

Goldman

Sachs

International

........................

13,518,222

(8,037,628)

(5,054,384)

—

426,210

HSBC

Bank

plc

..................................

3,690

(3,690)

—

—

—

J.P.

Morgan

Securities

LLC

..........................

42,832

(42,832)

—

—

—

JPMorgan

Chase

Bank

NA

..........................

105,135

(105,135)

—

—

—

Morgan

Stanley

&

Co.

International

plc

..................

302,276

(302,276)

—

—

—

Societe

Generale

SA

..............................

22,312

(1,282)

—

—

21,030

UBS

AG

......................................

668

(668)

—

—

—

$

26,254,289

$

(9,440,419)

$

(16,282,120)

$

—

$

531,750

(a)

The

amount

of

derivatives

available

for

offset

is

limited

to

the

amount

of

derivative

assets

and/or

liabilities

that

are

subject

to

an

MNA.

(b)

Excess

of

collateral

received/pledged,

if

any,

from

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

(c)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

(d)

Net

amount

may

also

include

forward

foreign

currency

exchange

contracts

that

are

not

required

to

be

collateralized.

(e)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

BlackRock

Core

Bond

Portfolio

Schedules

of

Investments

49

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

...................................

$

—

$

373,445,443

$

—

$

373,445,443

Corporate

Bonds

........................................

—

948,527,028

—

948,527,028

Foreign

Agency

Obligations

.................................

—

4,798,730

—

4,798,730

Foreign

Government

Obligations

..............................

—

26,873,708

—

26,873,708

Municipal

Bonds

.........................................

—

25,121,699

—

25,121,699

Non-Agency

Mortgage-Backed

Securities

........................

—

244,981,346

1,141,108

246,122,454

Other

Interests

..........................................

—

—

—

—

Capital

Trusts

...........................................

—

8,304,149

—

8,304,149

U.S.

Government

Sponsored

Agency

Securities

....................

—

1,217,068,574

—

1,217,068,574

U.S.

Treasury

Obligations

...................................

—

686,805,619

—

686,805,619

Short-Term

Securities

Commercial

Paper

.......................................

—

3,562,799

—

3,562,799

Money

Market

Funds

......................................

156,097,271

—

—

156,097,271

Options

Purchased

Interest

rate

contracts

......................................

15,609

8,606,577

—

8,622,186

Liabilities

Investments

TBA

Sale

Commitments

....................................

—

(261,362,418)

—

(261,362,418)

$

156,112,880

$

3,286,733,254

$

1,141,108

$

3,443,987,242

Derivative

Financial

Instruments

(a)

Assets

Credit

contracts

...........................................

$

—

$

256,945

$

—

$

256,945

Foreign

currency

exchange

contracts

............................

—

1,736,965

—

1,736,965

Interest

rate

contracts

.......................................

4,211,863

2,448,951

—

6,660,814

Liabilities

Credit

contracts

...........................................

—

(460,548)

—

(460,548)

Foreign

currency

exchange

contracts

............................

—

(345,311)

—

(345,311)

Interest

rate

contracts

.......................................

(15,722,231)

(29,071,873)

—

(44,794,104)

$

(11,510,368)

$

(25,434,871)

$

—

$

(36,945,239)

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

50

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(a)

AlbaCore

EURO

CLO

I

DAC,

Series

1X,

Class

ER,

(EURIBOR

3

Month

+

5.96%),

5.96%,

10/18/34

(b)

.....................

EUR

1,400

$

1,047,658

Aqueduct

European

CLO

2

DAC,

Series

2017-

2X,

Class

E,

(EURIBOR

3

Month

+

4.40%),

4.40%,

10/15/30

(b)

................

884

688,311

ARBOUR

CLO

VIII

DAC,

Series

8X,

Class

ER,

(EURIBOR

3

Month

+

6.11%),

6.11%,

10/15/34

(b)

.....................

700

537,974

Atrium

VIII,

Series

8A,

Class

SUB,

0.00%,

10/23/24

(c)

.....................

USD

11,500

17,710

Avoca

CLO

XV

DAC,

Series

15X,

Class

ER,

(EURIBOR

3

Month

+

4.13%),

4.13%,

04/15/31

(b)

.....................

EUR

620

464,667

BBAM

European

CLO

II

DAC,

Series

2X,

Class

E,

(EURIBOR

3

Month

+

6.11%),

6.11%,

10/15/34

(b)

.....................

1,400

1,070,665

Bilbao

CLO

I

DAC,

Series

1X,

Class

D,

(EURIBOR

3

Month

+

4.73%),

4.78%,

07/20/31

(b)

.....................

400

308,423

Bilbao

CLO

II

DAC,

Series

2X,

Class

DR,

(EURIBOR

3

Month

+

5.97%),

6.36%,

08/20/35

(b)

.....................

1,000

760,948

BlueMountain

Fuji

Eur

CLO

IV

DAC,

Series

4X,

Class

ER,

(EURIBOR

3

Month

+

6.21%),

6.68%,

02/25/34

(b)

................

1,000

762,593

Cairn

CLO

XIV

DAC,

Series

2021-14X,

Class

E,

(EURIBOR

3

Month

+

6.11%),

6.35%,

10/29/34

(b)

.....................

1,400

1,075,893

Capital

Four

CLO

III

DAC,

Series

3X,

Class

E,

(EURIBOR

3

Month

+

6.06%),

6.06%,

10/15/34

(b)

.....................

1,020

784,905

Carlyle

Global

Market

Strategies

CLO

Ltd.,

Series

2015-4A,

Class

SBB1,

(LIBOR

USD

3

Month

+

8.50%),

11.21%,

07/20/32

(c)

..

USD

57

55,396

Contego

CLO

VIII

DAC,

Series

8X,

Class

ER,

(EURIBOR

3

Month

+

6.06%),

6.20%,

01/25/34

(b)

.....................

EUR

1,400

1,118,358

CVC

Cordatus

Loan

Fund

XXII

DAC,

Series

22X,

Class

D,

(EURIBOR

3

Month

+

3.15%),

4.15%,

12/15/34

(b)

................

300

239,420

Fair

Oaks

Loan

Funding

III

DAC,

Series

3X,

Class

ER,

(EURIBOR

3

Month

+

6.11%),

6.11%,

10/15/34

(b)

................

1,039

791,354

Galaxy

XVIII

CLO

Ltd.,

Series

2018-28A,

Class

C,

(LIBOR

USD

3

Month

+

1.95%),

4.46%,

07/15/31

(c)

.....................

USD

250

228,624

Greene

King

Finance

plc,

Series

B2,  (Sterling

Overnight

Index

Average

+

2.20%),

4.39%,

03/15/36

(b)

.....................

GBP

100

83,741

Harvest

CLO

XVI

DAC,

Series

16X,

Class

ER,

(EURIBOR

3

Month

+

5.57%),

5.57%,

10/15/31

(b)

.....................

EUR

1,125

885,282

Invesco

Euro

CLO

III

DAC,

Series

3X,

Class

F,

(EURIBOR

3

Month

+

8.07%),

8.07%,

07/15/32

(b)

.....................

229

183,675

Jamestown

CLO

IV

Ltd.,

Series

2014-4A,

Class

SUB,

0.00%,

07/15/26

(c)(d)

...........

USD

2,000

—

Neuberger

Berman

Loan

Advisers

Euro

CLO

DAC,

Series

2021-2X,

Class

E,

(EURIBOR

3

Month

+

6.06%),

6.06%,

04/15/34

(b)

...

EUR

1,223

941,455

Northwoods

Capital

21

Euro

DAC,

Series

2020-21X,

Class

ER,

(EURIBOR

3

Month

+

6.06%),

6.19%,

07/22/34

(b)

..........

500

386,199

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(a)

(continued)

OCP

Euro

CLO

DAC

(b)

Series

2017-2X,

Class

E,

(EURIBOR

3

Month

+

5.00%),

5.00%,

01/15/32

...

EUR

1,347

$

1,077,554

Series

2017-2X,

Class

F,

(EURIBOR

3

Month

+

6.40%),

6.40%,

01/15/32

...

900

624,889

Providus

CLO

III

DAC,

Series

3X,

Class

ER,

(EURIBOR

3

Month

+

6.26%),

6.26%,

07/18/34

(b)

.....................

1,000

778,769

Rockfield

Park

CLO

DAC,

Series

1X,

Class

D,

(EURIBOR

3

Month

+

5.95%),

5.95%,

07/16/34

(b)

.....................

613

472,609

Seneca

Park

CLO

Ltd.,

Series

2014-1A,

Class

SUB,

0.00%,

07/17/26

(c)

............

USD

2,500

1,225

Voya

Euro

CLO

II

DAC,

Series

2X,

Class

ER,

(EURIBOR

3

Month

+

6.02%),

6.02%,

07/15/35

(b)

.....................

EUR

670

516,969

Total

Asset-Backed

Securities

—

0.1%

(Cost:

$36,387,303)

..............................

15,905,266

Shares

Shares

Common

Stocks

Auto

Components

—

0.0%

Lear

Corp.

.......................

1

120

Building

Products

—

0.0%

AZEK

Co.,

Inc.

(The)

(e)

...............

14,842

246,674

Chemicals

—

0.1%

Diversey

Holdings

Ltd.

(e)

..............

2,080,412

10,110,802

Element

Solutions,

Inc.

...............

800,117

13,017,904

23,128,706

Commercial

Services

&

Supplies

—

0.0%

Freedom

Institute,

Inc.

(d)(e)

.............

314,534

3

Electrical

Equipment

—

0.1%

Ardagh

Metal

Packaging

SA,

(Acquired

08/02/21,

cost

$21,863,306)

(e)(f)

.......

2,223,387

10,338,749

Sensata

Technologies

Holding

plc

........

137,852

5,139,123

SunPower

Corp.

(e)

..................

1,369

31,542

15,509,414

Hotels,

Restaurants

&

Leisure

—

0.0%

NEW

Top

YK

(d)(e)

...................

33,516

—

IT

Services

—

0.0%

(e)

Block,

Inc.,

Class

A

.................

53,398

2,936,356

Twilio

,

Inc.,

Class

A

.................

26,405

1,825,642

4,761,998

Life

Sciences

Tools

&

Services

—

0.1%

Syneos

Health,

Inc.

(e)(g)

...............

309,110

14,574,536

Media

—

0.0%

Clear

Channel

Outdoor

Holdings,

Inc.

(e)(g)

...

3,237,682

4,435,624

Metals

&

Mining

—

0.1%

Constellium

SE,

Class

A

(e)

.............

1,740,611

17,649,796

Oil,

Gas

&

Consumable

Fuels

—

0.3%

Cheniere

Energy,

Inc.

................

74,894

12,425,664

Chesapeake

Energy

Corp.

............

232,836

21,935,480

Energy

Transfer

LP

.................

913,250

10,073,147

KCAD

Holdings

I

Ltd.

(d)(e)

..............

4,067,849,248

40,678

44,474,969

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

51

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Shares

Shares

Value

Road

&

Rail

—

0.0%

Uber

Technologies,

Inc.

(e)

.............

175,084

$

4,639,726

Semiconductors

&

Semiconductor

Equipment

—

0.0%

Maxeon

Solar

Technologies

Ltd.

(e)

........

171

4,065

Software

—

0.1%

Informatica

,

Inc.,

Class

A

(e)(g)

...........

609,758

12,237,843

Total

Common

Stocks

—

0.8%

(Cost:

$204,356,908)

.............................

141,663,474

Par

(000)

Par

(000)

Corporate

Bonds

Aerospace

&

Defense

—

3.6%

Boeing

Co.

(The)

5.81%,

05/01/50

.................

USD

20,000

17,379,837

5.93%,

05/01/60

.................

10,000

8,554,077

Bombardier,

Inc.

(c)

7.50%,

03/15/25

.................

4,006

3,895,394

7.13%,

06/15/26

.................

66,598

61,081,688

7.88%,

04/15/27

.................

46,207

42,510,440

6.00%,

02/15/28

.................

33,361

27,912,292

7.45%,

05/01/34

.................

1,604

1,496,083

BWX

Technologies,

Inc.

(c)

4.13%,

06/30/28

.................

13,804

12,056,137

4.13%,

04/15/29

.................

13,854

11,984,126

F-Brasile

SpA,

Series

XR,

7.38%,

08/15/26

(c)

18,776

14,555,343

Howmet

Aerospace,

Inc.,

5.13%,

10/01/24

.

505

493,536

Maxar

Technologies,

Inc.,

7.75%,

06/15/27

(c)

9,061

8,516,071

Rolls-Royce

plc,

5.75%,

10/15/27

(c)

......

42,527

36,945,331

Spirit

AeroSystems

,

Inc.

(c)

5.50%,

01/15/25

.................

5,929

5,602,905

7.50%,

04/15/25

.................

10,650

10,034,750

TransDigm

,

Inc.

8.00%,

12/15/25

(c)

................

13,543

13,735,446

6.25%,

03/15/26

(c)

................

288,972

280,302,840

6.38%,

06/15/26

.................

961

907,917

7.50%,

03/15/27

.................

7,602

7,237,104

5.50%,

11/15/27

.................

4,597

3,998,011

4.63%,

01/15/29

.................

33,008

26,572,430

4.88%,

05/01/29

.................

17,926

14,489,675

Triumph

Group,

Inc.,

8.88%,

06/01/24

(c)

...

32,181

31,791,288

642,052,721

Airlines

—

1.8%

Air

Canada,

3.88%,

08/15/26

(c)

.........

14,848

12,750,720

Air

France-KLM,

3.88%,

07/01/26

(b)

......

EUR

2,000

1,591,977

Allegiant

Travel

Co.,

7.25%,

08/15/27

(c)

....

USD

7,238

6,821,815

American

Airlines,

Inc.

(c)

11.75%,

07/15/25

................

63,735

66,561,010

5.50%,

04/20/26

.................

15,368

14,433,468

5.75%,

04/20/29

.................

58,440

50,989,263

Delta

Air

Lines,

Inc.

(c)

7.00%,

05/01/25

.................

4,682

4,712,208

4.75%,

10/20/28

.................

3,984

3,710,350

Deutsche

Lufthansa

AG

(b)

2.88%,

02/11/25

.................

EUR

300

263,144

3.75%,

02/11/28

.................

2,800

2,158,826

3.50%,

07/14/29

.................

2,400

1,722,523

Hawaiian

Brand

Intellectual

Property

Ltd.,

5.75%,

01/20/26

(c)

...............

USD

11,982

10,567,911

International

Consolidated

Airlines

Group

SA

(b)

2.75%,

03/25/25

.................

EUR

1,200

978,310

1.13%,

05/18/28

(h)

................

3,100

1,794,370

3.75%,

03/25/29

.................

1,600

1,050,614

Security

Par

(000)

Par

(000)

Value

Airlines

(continued)

Mileage

Plus

Holdings

LLC,

6.50%,

06/20/27

(c)

USD

49,647

$

48,593,491

Spirit

Loyalty

Cayman

Ltd.,

8.00%,

09/20/25

(c)

2,945

2,962,199

United

Airlines

Pass-Through

Trust

Series

2020-1,

Class

B,

4.88%,

01/15/26

3,518

3,286,010

Series

2020-1,

Class

A,

5.88%,

10/15/27

34,368

33,148,824

United

Airlines,

Inc.

(c)

4.38%,

04/15/26

.................

28,432

25,375,560

4.63%,

04/15/29

.................

36,684

30,353,809

323,826,402

Auto

Components

—

1.8%

Adient

Global

Holdings

Ltd.,

3.50%,

08/15/24

(b)

EUR

1,700

1,535,297

Allison

Transmission,

Inc.,

5.88%,

06/01/29

(c)

USD

6,143

5,559,415

Clarios

Global

LP

6.75%,

05/15/25

(c)

................

18,857

18,465,340

4.38%,

05/15/26

(b)

................

EUR

2,700

2,333,944

6.25%,

05/15/26

(c)

................

USD

39,508

37,730,140

8.50%,

05/15/27

(c)

................

151,330

144,442,972

Dana

Financing

Luxembourg

SARL,

3.00%,

07/15/29

(b)

....................

EUR

1,000

705,442

Dealer

Tire

LLC,

8.00%,

02/01/28

(c)

......

USD

14,249

12,539,422

Dornoch

Debt

Merger

Sub,

Inc.,

6.63%,

10/15/29

(c)

....................

7,439

5,363,914

Faurecia

SE

(b)

2.75%,

02/15/27

.................

EUR

1,800

1,353,939

3.75%,

06/15/28

.................

1,579

1,170,296

Gestamp

Automocion

SA,

3.25%,

04/30/26

(b)

167

144,017

Goodyear

Tire

&

Rubber

Co.

(The)

9.50%,

05/31/25

.................

USD

4,574

4,745,525

5.00%,

07/15/29

.................

10,232

8,352,893

5.63%,

04/30/33

.................

2,655

2,127,319

Grupo

Antolin-Irausa

SA

(b)

3.38%,

04/30/26

.................

EUR

443

325,622

3.50%,

04/30/28

.................

2,196

1,373,183

Icahn

Enterprises

LP

4.75%,

09/15/24

.................

USD

7,437

6,957,760

6.25%,

05/15/26

.................

9,496

8,874,392

5.25%,

05/15/27

.................

38,134

33,386,698

4.38%,

02/01/29

.................

14,300

11,509,784

IHO

Verwaltungs

GmbH,

3.88%,

(3.88%

Cash

or

4.63%

PIK),

05/15/27

(a)(b)(i)

........

EUR

1,911

1,434,248

ZF

Europe

Finance

BV,

2.50%,

10/23/27

(b)

..

2,100

1,572,824

ZF

Finance

GmbH,

2.00%,

05/06/27

(b)

....

1,200

908,408

312,912,794

Automobiles

—

0.3%

Ford

Motor

Co.

3.25%,

02/12/32

.................

USD

34,897

25,137,356

6.10%,

08/19/32

.................

11,527

10,162,203

4.75%,

01/15/43

.................

6,155

4,078,242

5.29%,

12/08/46

.................

2,727

1,922,535

Jaguar

Land

Rover

Automotive

plc

7.75%,

10/15/25

(c)

................

400

353,758

6.88%,

11/15/26

(b)

................

EUR

1,000

764,184

5.88%,

01/15/28

(c)

................

USD

400

281,000

RCI

Banque

SA,

(EUR

Swap

Annual

5

Year

+

2.85%),

2.63%,

02/18/30

(a)(b)

.........

EUR

7,100

5,896,301

Renault

SA,

2.38%,

05/25/26

(b)

.........

1,400

1,143,793

Thor

Industries,

Inc.,

4.00%,

10/15/29

(c)

...

USD

7,174

5,391,620

Volvo

Car

AB,

2.50%,

10/07/27

(b)

.......

EUR

1,051

851,375

Winnebago

Industries,

Inc.,

6.25%,

07/15/28

(c)

USD

5,157

4,770,225

60,752,592

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

52

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Banks

—

0.6%

Banco

Bilbao

Vizcaya

Argentaria

SA,

(EUR

Swap

Annual

5

Year

+

6.04%),

6.00%

(a)(b)(j)

EUR

600

$

532,820

Banco

BPM

SpA

(a)(b)

(EUR

Swap

Annual

5

Year

+

5.42%),

5.00%,

09/14/30

...............

882

805,049

(EUR

Swap

Annual

5

Year

+

3.17%),

2.88%,

06/29/31

...............

1,950

1,536,522

(EUR

Swap

Annual

5

Year

+

3.40%),

3.38%,

01/19/32

...............

425

330,614

Banco

de

Credito

Social

Cooperativo

SA,

(EUR

Swap

Annual

1

Year

+

5.62%),

8.00%,

09/22/26

(a)(b)

...................

700

681,215

Banco

de

Sabadell

SA

(a)(b)

(EUR

Swap

Annual

5

Year

+

2.20%),

2.00%,

01/17/30

...............

900

751,238

(EUR

Swap

Annual

5

Year

+

2.95%),

2.50%,

04/15/31

...............

1,700

1,332,868

Banco

Espirito

Santo

SA

(b)(e)(k)

2.63%,

05/08/17

.................

10,400

1,223,102

4.75%,

01/15/18

.................

12,300

1,446,554

4.00%,

01/21/19

.................

12,000

1,411,272

Banco

Santander

SA,

(EUR

Swap

Annual

5

Year

+

4.53%),

4.38%

(a)(b)(j)

..........

800

607,631

Bank

of

Cyprus

PCL,

(EUR

Swap

Annual

1

Year

+

2.79%),

2.50%,

06/24/27

(a)(b)

....

800

622,920

Barclays

plc

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.87%),

6.13%

(a)(j)

....................

USD

800

674,080

(U.K.

Government

Bonds

5

Year

Note

Generic

Bid

Yield

+

6.02%),

6.38%

(a)(b)(j)

GBP

600

551,017

5.20%,

05/12/26

.................

USD

7,800

7,414,454

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.41%),

4.38%

(a)(j)

....................

7,990

4,924,237

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.43%),

8.00%

(a)(j)

....................

13,220

11,570,144

BNP

Paribas

SA,

(EUR

Swap

Annual

5

Year

+

4.65%),

6.88%

(a)(b)(j)

..............

EUR

2,800

2,544,471

CaixaBank

SA,

(EUR

Swap

Annual

5

Year

+

6.22%),

6.38%

(a)(b)(j)

..............

1,000

928,597

Commerzbank

AG,

(EUR

Swap

Annual

5

Year

+

6.36%),

6.13%

(a)(b)(j)

.............

2,400

1,978,721

Credit

Agricole

SA,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.24%),

4.75%

(a)(c)(j)

..............

USD

13,270

9,143,826

First-Citizens

Bank

&

Trust

Co.,

6.00%,

04/01/36

.....................

23,131

22,065,653

HSBC

Bank

plc,

Series

1M,

(LIBOR

USD

6

Month

+

0.25%),

3.13%

(a)(j)

..........

2,720

1,983,913

HSBC

Holdings

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.65%),

4.60%

(a)(j)

...............

6,310

4,375,928

Intesa

Sanpaolo

SpA

5.71%,

01/15/26

(c)

................

4,290

3,901,827

(EUR

Swap

Annual

5

Year

+

7.19%),

7.75%

(a)(b)(j)

...................

EUR

1,083

936,680

(EUR

Swap

Annual

5

Year

+

5.56%),

6.38%

(a)(b)(j)

...................

500

371,779

5.15%,

06/10/30

(b)

................

GBP

1,400

1,162,473

(EUR

Swap

Annual

5

Year

+

6.09%),

5.88%

(a)(b)(j)

...................

EUR

925

643,648

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.60%),

4.20%,

06/01/32

(a)(c)

.............

USD

10,505

7,082,457

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.75%),

4.95%,

06/01/42

(a)(c)

.............

USD

7,665

$

4,551,602

JPMorgan

Chase

&

Co.,

(SOFR

6

Month

+

2.58%),

5.72%,

09/14/33

(a)

..........

11,894

11,247,496

UniCredit

SpA

(a)(b)

(EUR

Swap

Annual

5

Year

+

6.39%),

6.63%

(j)

.....................

EUR

1,400

1,278,679

(EURIBOR

Swap

Rate

5

Year

+

7.33%),

7.50%

(j)

.....................

600

516,257

(EUR

Swap

Annual

5

Year

+

2.80%),

2.73%,

01/15/32

...............

1,000

779,481

111,909,225

Biotechnology

—

0.0%

Cidron

Aida

Finco

SARL

(b)

5.00%,

04/01/28

.................

3,261

2,616,838

6.25%,

04/01/28

.................

GBP

1,624

1,427,956

4,044,794

Building

Products

—

0.8%

Advanced

Drainage

Systems,

Inc.

(c)

5.00%,

09/30/27

.................

USD

8,888

8,173,760

6.38%,

06/15/30

.................

31,057

30,089,575

Camelot

Return

Merger

Sub,

Inc.,

8.75%,

08/01/28

(c)

....................

10,901

8,984,625

HT

Troplast

GmbH,

9.25%,

07/15/25

(b)

....

EUR

1,071

926,297

James

Hardie

International

Finance

DAC,

5.00%,

01/15/28

(c)

...............

USD

3,204

2,893,564

JELD-WEN,

Inc.,

6.25%,

05/15/25

(c)

.....

9,275

8,718,500

Masonite

International

Corp.

(c)

5.38%,

02/01/28

.................

1,189

1,051,706

3.50%,

02/15/30

.................

7,398

5,655,818

New

Enterprise

Stone

&

Lime

Co.,

Inc.

(c)

5.25%,

07/15/28

.................

5,389

4,454,143

9.75%,

07/15/28

.................

9,352

7,888,549

PCF

GmbH,

4.75%,

04/15/26

(b)

........

EUR

1,203

949,920

SRM

Escrow

Issuer

LLC,

6.00%,

11/01/28

(c)

.

USD

32,001

26,008,493

Standard

Industries,

Inc.

2.25%,

11/21/26

(b)

................

EUR

1,232

941,837

4.75%,

01/15/28

(c)

................

USD

1,492

1,260,561

4.38%,

07/15/30

(c)

................

20,382

15,592,230

3.38%,

01/15/31

(c)

................

7,274

5,115,804

Summit

Materials

LLC,

5.25%,

01/15/29

(c)

..

9,608

8,455,040

137,160,422

Capital

Markets

—

0.5%

AG

TTMT

Escrow

Issuer

LLC,

8.63%,

09/30/27

(c)

....................

9,264

8,708,160

Aretec

Escrow

Issuer,

Inc.,

7.50%,

04/01/29

(c)

8,343

6,982,438

Codere

New

Holdco

SA

7.50%,

11/30/27

.................

EUR

929

524,209

Compass

Group

Diversified

Holdings

LLC,

5.25%,

04/15/29

(c)

...............

USD

11,295

8,863,525

Credit

Suisse

Group

AG

(a)(j)

(USD

Swap

Semi

5

Year

+

3.46%),

6.25%

(c)

4,949

4,239,610

(USD

Swap

Rate

5

Year

+

4.33%),

7.25%

(b)

2,200

1,682,817

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.82%),

6.38%

(c)

.....................

5,187

3,773,542

Deutsche

Bank

AG

(a)(b)

(EUR

Swap

Annual

5

Year

+

5.69%),

6.75%

(j)

.....................

EUR

400

311,672

(EURIBOR

Swap

Rate

5

Year

+

3.30%),

4.00%,

06/24/32

...............

1,800

1,495,680

Drawbridge

Special

Opportunities

Fund

LP,

3.88%,

02/15/26

(c)

...............

USD

1,189

1,079,242

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

53

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Kane

Bidco

Ltd.

(b)

5.00%,

02/15/27

.................

EUR

871

$

717,044

6.50%,

02/15/27

.................

GBP

713

682,895

Lehman

Brothers

Holdings,

Inc.

5.38%,

10/17/12

(e)(k)

...............

EUR

4,550

24,526

4.75%,

01/16/14

(d)(e)(k)

..............

14,545

78,403

(EURIBOR

3

Month

+

0.30%),

0.00%,

02/05/14

(a)(e)(k)

.................

22,800

122,898

0.00%,

12/30/16

.................

USD

1,000

3,700

MSCI,

Inc.

(c)

3.63%,

09/01/30

.................

5,288

4,350,951

3.88%,

02/15/31

.................

7,719

6,499,120

3.63%,

11/01/31

.................

2,120

1,700,917

3.25%,

08/15/33

.................

7,343

5,670,485

OWL

Rock

Core

Income

Corp.

5.50%,

03/21/25

.................

10,277

9,668,652

7.75%,

09/16/27

(c)

................

13,404

13,200,453

Sherwood

Financing

plc,

6.00%,

11/15/26

(b)

.

GBP

313

261,673

UBS

Group

AG,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.31%),

4.38%

(a)(c)(j)

...................

USD

13,275

8,721,675

89,364,287

Chemicals

—

2.2%

Ashland

LLC,

3.38%,

09/01/31

(c)

........

15,380

11,887,433

Avient

Corp.,

7.13%,

08/01/30

(c)

........

10,568

9,753,524

Axalta

Coating

Systems

Dutch

Holding

B

BV,

3.75%,

01/15/25

(b)

...............

EUR

2,426

2,175,505

Axalta

Coating

Systems

LLC

(c)

4.75%,

06/15/27

.................

USD

17,075

15,211,034

3.38%,

02/15/29

.................

18,616

14,594,013

Celanese

US

Holdings

LLC,

6.17%,

07/15/27

11,945

11,304,806

Chemours

Co.

(The),

5.75%,

11/15/28

(c)

...

4,396

3,595,576

Diamond

BC

BV,

4.63%,

10/01/29

(c)

......

33,138

23,058,083

Element

Solutions,

Inc.,

3.88%,

09/01/28

(c)

.

86,785

69,879,282

EverArc

Escrow

SARL,

5.00%,

10/30/29

(c)

..

36,881

29,772,003

FIS

Fabbrica

Italiana

Sintetici

SpA,

5.63%,

08/01/27

(b)

....................

EUR

1,661

1,351,126

Gates

Global

LLC,

6.25%,

01/15/26

(c)

.....

USD

19,877

18,286,840

GCP

Applied

Technologies,

Inc.,

5.50%,

04/15/26

(c)

....................

12,110

12,276,512

HB

Fuller

Co.,

4.25%,

10/15/28

........

8,667

7,292,414

Herens

Holdco

SARL,

4.75%,

05/15/28

(c)

..

21,861

17,488,800

Herens

Midco

SARL,

5.25%,

05/15/29

(b)

...

EUR

1,743

1,069,231

Illuminate

Buyer

LLC,

9.00%,

07/01/28

(c)

...

USD

30,982

25,715,060

Ingevity

Corp.,

3.88%,

11/01/28

(c)

.......

5,329

4,405,937

Kobe

U.S.

Midco

2,

Inc.,

9.25%,

11/01/26

(a)(c)

16,476

13,016,040

Kronos

International,

Inc.,

3.75%,

09/15/25

(b)

EUR

250

211,552

LSF11

A5

HoldCo

LLC,

6.63%,

10/15/29

(c)

..

USD

7,540

5,655,000

Lune

Holdings

SARL,

5.63%,

11/15/28

(b)

...

EUR

625

459,582

Minerals

Technologies,

Inc.,

5.00%,

07/01/28

(c)

USD

8,620

7,502,223

Monitchem

HoldCo

3

SA,

5.25%,

03/15/25

(b)

EUR

2,293

2,033,765

NOVA

Chemicals

Corp.,

4.88%,

06/01/24

(c)

.

USD

1,606

1,509,030

Olympus

Water

US

Holding

Corp.

(b)

3.88%,

10/01/28

.................

EUR

497

368,233

5.38%,

10/01/29

.................

858

612,808

SCIL

IV

LLC,

5.38%,

11/01/26

(c)

........

USD

12,785

9,876,413

Scotts

Miracle-

Gro

Co.

(The)

4.00%,

04/01/31

.................

9,152

6,443,008

4.38%,

02/01/32

.................

1,779

1,265,225

WR

Grace

Holdings

LLC

(c)

4.88%,

06/15/27

.................

467

401,447

5.63%,

08/15/29

.................

82,008

61,506,000

389,977,505

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

—

2.9%

ADT

Security

Corp.

(The)

(c)

4.13%,

08/01/29

.................

USD

5,578

$

4,629,740

4.88%,

07/15/32

.................

3,543

2,857,297

Allied

Universal

Holdco

LLC

6.63%,

07/15/26

(c)

................

73,818

65,790,292

9.75%,

07/15/27

(c)

................

28,942

23,789,768

3.63%,

06/01/28

(b)

................

EUR

920

670,284

4.63%,

06/01/28

(c)

................

USD

71,842

54,795,478

4.88%,

06/01/28

(b)

................

GBP

827

671,764

6.00%,

06/01/29

(c)

................

USD

56,202

36,271,304

APi

Group

DE,

Inc.

(c)

4.13%,

07/15/29

.................

12,124

9,608,270

4.75%,

10/15/29

.................

6,702

5,553,625

APX

Group,

Inc.

(c)

6.75%,

02/15/27

.................

9,209

8,602,760

5.75%,

07/15/29

.................

14,584

11,529,746

Aramark

Services,

Inc.

(c)

5.00%,

04/01/25

.................

1,361

1,299,831

6.38%,

05/01/25

.................

15,132

14,829,360

5.00%,

02/01/28

.................

24,879

22,159,974

Brink's

Co.

(The),

5.50%,

07/15/25

(c)

.....

1,038

982,470

Clean

Harbors,

Inc.

(c)

4.88%,

07/15/27

.................

5,230

4,767,406

5.13%,

07/15/29

.................

4,198

3,865,015

Covanta

Holding

Corp.

4.88%,

12/01/29

(c)

................

4,509

3,644,444

5.00%,

09/01/30

.................

7,166

5,616,353

Garda

World

Security

Corp.,

4.63%,

02/15/27

(c)

6,371

5,463,101

GFL

Environmental,

Inc.

(c)

4.25%,

06/01/25

.................

5,193

4,870,099

3.75%,

08/01/25

.................

5,429

4,967,535

5.13%,

12/15/26

.................

23,593

21,970,863

4.00%,

08/01/28

.................

24,032

20,030,191

3.50%,

09/01/28

.................

1,057

891,379

4.75%,

06/15/29

.................

25,234

21,259,645

4.38%,

08/15/29

.................

11,444

9,541,778

IAA,

Inc.,

5.50%,

06/15/27

(c)

..........

8,997

8,209,763

Intrum

AB

(b)

3.13%,

07/15/24

.................

EUR

1,000

891,845

4.88%,

08/15/25

.................

1,446

1,248,710

3.50%,

07/15/26

.................

1,654

1,290,480

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(c)

....................

USD

7,421

6,354,825

Madison

IAQ

LLC,

5.88%,

06/30/29

(c)

.....

12,157

8,468,080

Nielsen

Finance

LLC

(c)

5.63%,

10/01/28

.................

12,726

12,630,905

5.88%,

10/01/30

.................

7,388

7,357,451

Paprec

Holding

SA,

3.50%,

07/01/28

(b)

....

EUR

1,240

925,422

Prime

Security

Services

Borrower

LLC

(c)

5.75%,

04/15/26

.................

USD

8,801

8,281,213

6.25%,

01/15/28

.................

28,068

23,952,429

Ritchie

Bros

Auctioneers,

Inc.,

5.38%,

01/15/25

(c)

....................

4,373

4,289,782

Stericycle,

Inc.,

3.88%,

01/15/29

(c)

.......

9,877

8,179,391

Techem

Verwaltungsgesellschaft

674

mbH,

6.00%,

07/30/26

(b)

...............

EUR

2,110

1,853,426

Techem

Verwaltungsgesellschaft

675

mbH,

2.00%,

07/15/25

(b)

...............

600

513,815

Verde

Bidco

SpA,

4.63%,

10/01/26

(b)

.....

528

401,036

Verisure

Holding

AB

(b)

3.50%,

05/15/23

.................

109

106,558

3.88%,

07/15/26

.................

1,425

1,198,683

3.25%,

02/15/27

.................

4,381

3,481,388

9.25%,

10/15/27

.................

287

284,956

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

54

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Waste

Pro

USA,

Inc.,

5.50%,

02/15/26

(c)

...

USD

53,706

$

47,182,332

518,032,262

Communications

Equipment

—

0.8%

Avaya,

Inc.,

6.13%,

09/15/28

(c)

.........

18,149

9,029,127

Ciena

Corp.,

4.00%,

01/31/30

(c)

........

6,784

5,664,640

CommScope

Technologies

LLC,

6.00%,

06/15/25

(c)

....................

40,136

35,658,829

CommScope

,

Inc.

(c)

6.00%,

03/01/26

.................

7,985

7,351,949

8.25%,

03/01/27

.................

2,340

1,933,425

7.13%,

07/01/28

.................

12,951

9,997,010

4.75%,

09/01/29

.................

34,882

28,451,852

Nokia

OYJ,

6.63%,

05/15/39

..........

7,083

6,566,508

Viasat

,

Inc.

(c)

5.63%,

09/15/25

.................

15,404

11,958,279

6.50%,

07/15/28

.................

9,653

6,419,245

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

(c)

...

23,097

18,479,448

141,510,312

Construction

&

Engineering

—

0.2%

Arcosa,

Inc.,

4.38%,

04/15/29

(c)

........

23,523

19,994,550

Cellnex

Finance

Co.

SA

(b)

1.00%,

09/15/27

.................

EUR

500

389,117

1.50%,

06/08/28

.................

1,000

765,927

Dycom

Industries,

Inc.,

4.50%,

04/15/29

(c)

..

USD

5,899

4,970,928

Heathrow

Finance

plc,

4.12%,

09/01/29

(b)(l)

.

GBP

1,042

821,339

MasTec,

Inc.,

4.50%,

08/15/28

(c)

........

USD

10,365

9,047,166

35,989,027

Consumer

Finance

—

1.3%

Encore

Capital

Group,

Inc.

(b)

4.88%,

10/15/25

.................

EUR

532

484,894

5.38%,

02/15/26

.................

GBP

1,000

986,193

4.25%,

06/01/28

.................

2,373

1,980,556

Ford

Motor

Credit

Co.

LLC

3.81%,

01/09/24

.................

USD

1,844

1,784,070

5.58%,

03/18/24

.................

3,500

3,431,050

3.66%,

09/08/24

.................

13,142

12,353,480

4.54%,

03/06/25

.................

GBP

800

797,217

4.69%,

06/09/25

.................

USD

4,049

3,757,453

5.13%,

06/16/25

.................

13,706

12,933,119

4.13%,

08/04/25

.................

8,979

8,148,891

3.38%,

11/13/25

.................

6,710

5,928,330

4.39%,

01/08/26

.................

11,887

10,759,010

2.70%,

08/10/26

.................

17,658

14,645,369

4.27%,

01/09/27

.................

5,580

4,882,500

4.95%,

05/28/27

.................

15,531

13,865,766

4.13%,

08/17/27

.................

7,624

6,560,452

3.82%,

11/02/27

.................

2,510

2,108,400

2.90%,

02/16/28

.................

13,400

10,532,004

2.90%,

02/10/29

.................

1,767

1,338,503

5.11%,

05/03/29

.................

7,869

6,827,931

4.00%,

11/13/30

.................

10,572

8,246,160

3.63%,

06/17/31

.................

15,218

11,306,213

Global

Aircraft

Leasing

Co.

Ltd.

(c)(

i

)

6.50%,

(6.50%

Cash

or

7.25%

PIK),

09/15/24

....................

7,772

5,823,238

Series

2021,

6.50%,

(6.50%

Cash

or

7.25%

PIK),

09/15/24

(a)

...............

12,476

9,388,528

Lincoln

Financing

SARL,

3.63%,

04/01/24

(b)

.

EUR

700

661,338

Navient

Corp.

7.25%,

09/25/23

.................

USD

126

125,511

6.13%,

03/25/24

.................

477

464,479

5.88%,

10/25/24

.................

1,709

1,619,387

5.50%,

03/15/29

.................

13,089

9,949,571

Security

Par

(000)

Par

(000)

Value

Consumer

Finance

(continued)

OneMain

Finance

Corp.

6.88%,

03/15/25

.................

USD

12,733

$

11,967,110

7.13%,

03/15/26

.................

11,885

10,713,161

3.50%,

01/15/27

.................

6,747

5,255,728

6.63%,

01/15/28

.................

8,223

7,055,334

5.38%,

11/15/29

.................

1,995

1,546,125

4.00%,

09/15/30

.................

13,709

9,619,742

SLM

Corp.,

3.13%,

11/02/26

..........

9,715

8,041,786

VistaJet

Malta

Finance

plc,

6.38%,

02/01/30

(c)

8,629

7,054,208

Volkswagen

International

Finance

NV

(a)(b)(j)

(EUR

Swap

Annual

5

Year

+

2.92%),

3.75%

EUR

1,000

823,379

(EUR

Swap

Annual

9

Year

+

3.36%),

4.38%

200

152,883

233,919,069

Containers

&

Packaging

—

1.9%

ARD

Finance

SA,

6.50%,

06/30/27

(c)

.....

USD

43,514

29,794,184

Ardagh

Metal

Packaging

Finance

USA

LLC

6.00%,

06/15/27

(c)

................

24,128

22,721,423

3.25%,

09/01/28

(c)

................

1,840

1,501,366

3.00%,

09/01/29

(b)

................

EUR

5,584

3,897,651

4.00%,

09/01/29

(c)

................

USD

88,516

64,824,958

Ardagh

Packaging

Finance

plc

2.13%,

08/15/26

(b)

................

EUR

500

375,571

4.75%,

07/15/27

(c)

................

GBP

4,000

2,892,973

4.75%,

07/15/27

(b)

................

264

190,936

5.25%,

08/15/27

(c)

................

USD

9,355

5,853,704

Ball

Corp.

2.88%,

08/15/30

.................

2,121

1,627,751

3.13%,

09/15/31

.................

20,217

15,238,564

Canpack

SA,

3.13%,

11/01/25

(c)

........

7,284

6,405,367

Clydesdale

Acquisition

Holdings,

Inc.

(c)

6.63%,

04/15/29

.................

34,518

31,409,309

8.75%,

04/15/30

.................

32,122

26,565,857

Crown

Americas

LLC

4.75%,

02/01/26

.................

69

64,266

4.25%,

09/30/26

.................

5,032

4,558,388

5.25%,

04/01/30

(c)

................

942

847,800

Crown

Cork

&

Seal

Co.,

Inc.,

7.38%,

12/15/26

1,005

1,005,000

Graphic

Packaging

International

LLC

4.88%,

11/15/22

.................

223

222,448

4.75%,

07/15/27

(c)

................

2,203

2,016,929

3.50%,

03/15/28

(c)

................

519

441,317

2.63%,

02/01/29

(b)

................

EUR

4,253

3,181,307

3.50%,

03/01/29

(c)

................

USD

1,083

890,895

Kleopatra

Finco

SARL,

4.25%,

03/01/26

(b)

..

EUR

822

646,434

LABL,

Inc.,

5.88%,

11/01/28

(c)

.........

USD

13,947

11,295,669

Mauser

Packaging

Solutions

Holding

Co.,

5.50%,

04/15/24

(c)

...............

14,665

13,931,750

OI

European

Group

BV,

2.88%,

02/15/25

(b)

.

EUR

1,584

1,389,397

Sealed

Air

Corp.,

4.00%,

12/01/27

(c)

.....

USD

3,065

2,652,298

Silgan

Holdings,

Inc.,

4.13%,

02/01/28

....

2,237

1,984,219

Titan

Holdings

II

BV,

5.13%,

07/15/29

(b)

...

EUR

854

654,923

Trivium

Packaging

Finance

BV

(c)(l)

5.50%,

08/15/26

.................

USD

26,896

24,054,956

8.50%,

08/15/27

.................

68,836

60,769,274

Verallia

SA,

1.88%,

11/10/31

(b)

.........

EUR

700

468,219

344,375,103

Distributors

—

0.1%

(c)

American

Builders

&

Contractors

Supply

Co.,

Inc.

4.00%,

01/15/28

.................

USD

222

194,201

3.88%,

11/15/29

.................

14,250

11,162,235

BCPE

Empire

Holdings,

Inc.,

7.63%,

05/01/27

8,157

7,073,037

Resideo

Funding,

Inc.,

4.00%,

09/01/29

...

3,756

3,027,261

21,456,734

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

55

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Diversified

Consumer

Services

—

0.5%

Graham

Holdings

Co.,

5.75%,

06/01/26

(c)

..

USD

2,623

$

2,543,497

Metis

Merger

Sub

LLC,

6.50%,

05/15/29

(c)

..

12,728

9,927,840

Rekeep

SpA,

7.25%,

02/01/26

(b)

........

EUR

1,502

1,288,031

Service

Corp.

International

5.13%,

06/01/29

.................

USD

1,427

1,296,829

3.38%,

08/15/30

.................

5,789

4,527,519

4.00%,

05/15/31

.................

21,376

17,190,365

Sotheby's

(c)

7.38%,

10/15/27

.................

42,489

39,025,722

5.88%,

06/01/29

.................

20,250

16,728,930

92,528,733

Diversified

Financial

Services

—

1.0%

doValue

SpA,

3.38%,

07/31/26

(b)

........

EUR

624

497,772

Garfunkelux

Holdco

3

SA

(b)

6.75%,

11/01/25

.................

2,657

2,008,460

7.75%,

11/01/25

.................

GBP

1,954

1,701,756

Jefferies

Finance

LLC,

5.00%,

08/15/28

(c)

..

USD

18,935

13,964,562

MPH

Acquisition

Holdings

LLC,

5.50%,

09/01/28

(c)

....................

8,096

6,682,722

Sabre

GLBL,

Inc.

(c)

9.25%,

04/15/25

.................

14,920

14,284,557

7.38%,

09/01/25

.................

9,253

8,287,272

Shift4

Payments

LLC,

4.63%,

11/01/26

(c)

...

29,404

26,812,773

Verscend

Escrow

Corp.,

9.75%,

08/15/26

(c)

.

100,520

97,001,800

171,241,674

Diversified

Telecommunication

Services

—

6.6%

Altice

France

Holding

SA

8.00%,

05/15/27

(b)

................

EUR

954

706,873

8.00%,

05/15/27

(c)

................

1,000

740,957

10.50%,

05/15/27

(c)

...............

USD

104,433

81,797,721

Altice

France

SA

5.88%,

02/01/27

(b)

................

EUR

4,100

3,466,305

8.13%,

02/01/27

(c)

................

USD

19,703

17,609,556

4.13%,

01/15/29

(b)

................

EUR

2,323

1,730,259

5.13%,

01/15/29

(c)

................

USD

10,979

8,099,649

5.13%,

07/15/29

(c)

................

42,313

31,612,465

5.50%,

10/15/29

(c)

................

22,638

17,032,466

British

Telecommunications

plc

(a)(c)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.99%),

4.25%,

11/23/81

...............

1,200

1,012,343

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.49%),

4.88%,

11/23/81

...............

1,800

1,463,331

CCO

Holdings

LLC

5.13%,

05/01/27

(c)

................

13,765

12,422,912

5.00%,

02/01/28

(c)

................

22,257

19,191,321

5.38%,

06/01/29

(c)

................

10,358

9,066,565

6.38%,

09/01/29

(c)

................

42,039

38,596,006

4.75%,

03/01/30

(c)

................

20,494

16,625,758

4.50%,

08/15/30

(c)

................

14,375

11,368,325

4.25%,

02/01/31

(c)

................

43,526

33,386,179

4.75%,

02/01/32

(c)

................

49,708

38,711,596

4.50%,

05/01/32

.................

16,534

12,609,986

4.50%,

06/01/33

(c)

................

15,251

11,266,981

4.25%,

01/15/34

(c)

................

47,959

34,328,093

Cellnex

Telecom

SA

(b)

1.75%,

10/23/30

.................

EUR

400

275,784

0.75%,

11/20/31

(h)

................

13,200

8,427,453

Consolidated

Communications,

Inc.,

6.50%,

10/01/28

(c)

....................

USD

20,683

15,460,542

eircom

Finance

DAC,

1.75%,

11/01/24

(b)

...

EUR

846

798,030

Frontier

Communications

Holdings

LLC

(c)

5.88%,

10/15/27

.................

USD

11,716

10,500,231

Security

Par

(000)

Par

(000)

Value

Diversified

Telecommunication

Services

(continued)

5.00%,

05/01/28

.................

USD

25,679

$

22,037,718

6.75%,

05/01/29

.................

26,445

21,817,125

6.00%,

01/15/30

.................

16,447

12,921,174

8.75%,

05/15/30

.................

42,631

42,658,284

Iliad

Holding

SASU

6.50%,

10/15/26

(c)

................

42,658

37,300,155

5.63%,

10/15/28

(b)

................

EUR

1,140

956,763

7.00%,

10/15/28

(c)

................

USD

36,512

31,280,561

Iliad

SA

(b)

1.50%,

10/14/24

.................

EUR

500

455,723

2.38%,

06/17/26

.................

500

431,514

1.88%,

02/11/28

.................

400

311,664

Kaixo

Bondco

Telecom

SA,

5.13%,

09/30/29

(b)

457

350,043

Koninklijke

KPN

NV,

(EUR

Swap

Annual

5

Year

+

3.77%),

6.00%

(a)(b)(j)

.............

475

454,561

Level

3

Financing,

Inc.

(c)

3.40%,

03/01/27

.................

USD

5,278

4,420,325

4.63%,

09/15/27

.................

7,389

6,114,989

4.25%,

07/01/28

.................

11,793

9,198,658

3.63%,

01/15/29

.................

16,391

12,135,732

3.75%,

07/15/29

.................

9,195

6,735,338

Lorca

Telecom

Bondco

SA,

4.00%,

09/18/27

(b)

EUR

3,142

2,674,510

Lumen

Technologies,

Inc.

Series

W,

6.75%,

12/01/23

..........

USD

8,467

8,632,452

Series

Y,

7.50%,

04/01/24

..........

5,181

5,336,430

5.13%,

12/15/26

(c)

................

31,276

26,910,183

4.00%,

02/15/27

(c)

................

27,301

22,926,805

4.50%,

01/15/29

(c)

................

22,816

16,028,240

5.38%,

06/15/29

(c)

................

31,059

23,081,921

Series

U,

7.65%,

03/15/42

..........

9,737

6,589,583

Quebecor

Media,

Inc.,

5.75%,

01/15/23

...

1,537

1,521,630

RCS

&

RDS

SA,

2.50%,

02/05/25

(b)

......

EUR

1,800

1,542,807

Sable

International

Finance

Ltd.,

5.75%,

09/07/27

(c)

....................

USD

2,250

1,965,937

Sprint

Capital

Corp.

6.88%,

11/15/28

.................

61,519

63,210,772

8.75%,

03/15/32

.................

70,353

81,521,539

Switch

Ltd.

(c)

3.75%,

09/15/28

.................

18,423

18,307,856

4.13%,

06/15/29

.................

43,299

42,884,895

TDC

Holding

A/S,

6.88%,

02/23/23

(b)(l)

....

GBP

1,400

1,545,584

Telecom

Italia

Capital

SA

6.38%,

11/15/33

.................

USD

11,703

9,098,263

6.00%,

09/30/34

.................

10,437

7,777,861

7.20%,

07/18/36

.................

8,014

6,280,412

7.72%,

06/04/38

.................

8,383

6,688,209

Telecom

Italia

Finance

SA,

7.75%,

01/24/33

EUR

1,762

1,778,654

Telecom

Italia

SpA

4.00%,

04/11/24

(b)

................

1,664

1,572,880

5.30%,

05/30/24

(c)

................

USD

1,907

1,800,570

2.75%,

04/15/25

(b)

................

EUR

2,013

1,814,935

3.00%,

09/30/25

(b)

................

1,000

895,521

3.63%,

05/25/26

(b)

................

1,900

1,701,925

1.63%,

01/18/29

(b)

................

4,243

2,931,896

Virgin

Media

Finance

plc,

3.75%,

07/15/30

(b)

1,533

1,073,101

Virgin

Media

Secured

Finance

plc

5.25%,

05/15/29

(b)

................

GBP

300

265,460

4.50%,

08/15/30

(c)

................

USD

1,160

905,322

Zayo

Group

Holdings,

Inc.

(c)

4.00%,

03/01/27

.................

72,663

58,308,424

6.13%,

03/01/28

.................

126,986

89,090,448

1,164,553,039

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

56

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

—

0.7%

Edison

International,

Series

B,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.90%),

5.00%

(a)(j)

...........

USD

8,330

$

6,580,700

FirstEnergy

Corp.

2.65%,

03/01/30

.................

1,913

1,544,747

Series

B,

2.25%,

09/01/30

..........

1,684

1,295,552

Series

C,

3.40%,

03/01/50

..........

47,097

30,848,535

FirstEnergy

Transmission

LLC

(c)

5.45%,

07/15/44

.................

34,081

30,821,194

4.55%,

04/01/49

.................

16,133

12,601,201

Naturgy

Finance

BV,

(EUR

Swap

Annual

5

Year

+

2.44%),

2.37%

(a)(b)(j)

.............

EUR

2,100

1,574,450

NextEra

Energy

Operating

Partners

LP,

4.25%,

09/15/24

(c)

....................

USD

106

101,230

NRG

Energy,

Inc.

6.63%,

01/15/27

.................

3,000

2,937,799

5.75%,

01/15/28

.................

4,954

4,571,953

5.25%,

06/15/29

(c)

................

2,059

1,801,625

3.63%,

02/15/31

(c)

................

11,323

8,831,940

3.88%,

02/15/32

(c)

................

72

56,163

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(c)

....................

10,825

9,384,734

Vistra

Operations

Co.

LLC

(c)

5.50%,

09/01/26

.................

1,206

1,118,565

5.00%,

07/31/27

.................

1,206

1,089,319

4.38%,

05/01/29

.................

4,609

3,833,444

118,993,151

Electrical

Equipment

—

0.3%

Orano

SA,

3.38%,

04/23/26

(b)

.........

EUR

100

91,305

Sensata

Technologies

BV

(c)

5.63%,

11/01/24

.................

USD

2,862

2,845,916

5.00%,

10/01/25

.................

2,784

2,656,131

4.00%,

04/15/29

.................

4,683

3,875,134

5.88%,

09/01/30

.................

15,275

14,292,206

Vertiv

Group

Corp.,

4.13%,

11/15/28

(c)

....

37,276

30,007,180

53,767,872

Electronic

Equipment,

Instruments

&

Components

—

0.4%

CDW

LLC

3.28%,

12/01/28

.................

3,182

2,655,443

3.25%,

02/15/29

.................

4,167

3,383,962

Coherent

Corp.,

5.00%,

12/15/29

(c)

......

26,678

22,068,041

Sensata

Technologies,

Inc.

(c)

4.38%,

02/15/30

.................

37,572

31,391,782

3.75%,

02/15/31

.................

14,268

11,238,975

70,738,203

Energy

Equipment

&

Services

—

1.0%

Archrock

Partners

LP

(c)

6.88%,

04/01/27

.................

2,411

2,159,244

6.25%,

04/01/28

.................

48,816

42,909,020

CGG

SA,

7.75%,

04/01/27

(b)

..........

EUR

221

182,920

Nabors

Industries

Ltd.

(c)

7.25%,

01/15/26

.................

USD

8,865

7,713,605

7.50%,

01/15/28

.................

14,435

11,783,299

Nabors

Industries,

Inc.

5.75%,

02/01/25

.................

9,453

8,557,816

7.38%,

05/15/27

(c)

................

32,799

30,271,837

Saipem

Finance

International

BV

(b)

2.63%,

01/07/25

.................

EUR

1,600

1,349,458

3.38%,

07/15/26

.................

1,000

764,498

Tervita

Corp.,

11.00%,

12/01/25

(c)

.......

USD

5,460

5,883,150

Transocean,

Inc.,

11.50%,

01/30/27

(c)

.....

6,899

6,381,161

USA

Compression

Partners

LP

6.88%,

04/01/26

.................

21,092

19,404,640

6.88%,

09/01/27

.................

8,375

7,611,409

Security

Par

(000)

Par

(000)

Value

Energy

Equipment

&

Services

(continued)

Vallourec

SA,

8.50%,

06/30/26

(b)

........

EUR

896

$

818,729

Weatherford

International

Ltd.

(c)

11.00%,

12/01/24

................

USD

1,058

1,076,515

6.50%,

09/15/28

.................

10,618

9,556,200

8.63%,

04/30/30

.................

15,581

13,568,617

169,992,118

Entertainment

—

1.4%

AMC

Entertainment

Holdings,

Inc.,

7.50%,

02/15/29

(c)

....................

3,803

2,937,818

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

(c)

....................

49,587

36,942,315

Live

Nation

Entertainment,

Inc.

(c)

4.88%,

11/01/24

.................

1,420

1,373,637

6.50%,

05/15/27

.................

70,781

68,109,017

4.75%,

10/15/27

.................

15,785

13,704,300

3.75%,

01/15/28

.................

8,973

7,604,618

Netflix,

Inc.,

4.63%,

05/15/29

..........

EUR

1,200

1,096,986

Playtika

Holding

Corp.,

4.25%,

03/15/29

(c)

..

USD

19,965

15,966,809

Warnermedia

Holdings,

Inc.

(c)

5.14%,

03/15/52

.................

106,704

77,554,442

5.39%,

03/15/62

.................

40,099

29,068,223

WMG

Acquisition

Corp.

3.88%,

07/15/30

(c)

................

1,633

1,337,862

2.25%,

08/15/31

(b)

................

EUR

1,557

1,087,231

256,783,258

Equity

Real

Estate

Investment

Trusts

(REITs)

—

1.5%

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(c)

....................

USD

8,746

7,171,104

CTR

Partnership

LP,

3.88%,

06/30/28

(c)

...

2,836

2,332,610

Global

Net

Lease,

Inc.,

3.75%,

12/15/27

(c)

..

5,881

4,587,293

HAT

Holdings

I

LLC,

3.38%,

06/15/26

(c)

...

8,300

6,660,750

Iron

Mountain

Information

Management

Services,

Inc.,

5.00%,

07/15/32

(c)

......

8,378

6,485,350

Iron

Mountain

UK

plc,

3.88%,

11/15/25

(b)

...

GBP

3,232

3,192,784

Iron

Mountain,

Inc.

(c)

5.25%,

07/15/30

.................

USD

5,499

4,550,258

5.63%,

07/15/32

.................

7,771

6,216,800

MPT

Operating

Partnership

LP

4.63%,

08/01/29

.................

35,332

28,427,067

3.50%,

03/15/31

.................

61,356

42,719,115

RHP

Hotel

Properties

LP

4.75%,

10/15/27

.................

27,605

24,016,350

4.50%,

02/15/29

(c)

................

6,509

5,400,655

RLJ

Lodging

Trust

LP

(c)

3.75%,

07/01/26

.................

4,645

3,967,109

4.00%,

09/15/29

.................

4,143

3,245,506

SBA

Communications

Corp.

3.88%,

02/15/27

.................

43,348

38,445,775

3.13%,

02/01/29

.................

25,500

20,508,885

Uniti

Group

LP

(c)

4.75%,

04/15/28

.................

5,664

4,474,390

6.50%,

02/15/29

.................

16,547

11,089,944

VICI

Properties

LP

3.50%,

02/15/25

(c)

................

6,210

5,740,276

4.63%,

06/15/25

(c)

................

2,625

2,470,198

4.50%,

09/01/26

(c)

................

643

587,204

4.25%,

12/01/26

(c)

................

1,423

1,284,391

4.50%,

01/15/28

(c)

................

3,828

3,396,155

3.88%,

02/15/29

(c)

................

2,854

2,394,234

4.63%,

12/01/29

(c)

................

11,850

10,280,349

4.13%,

08/15/30

(c)

................

9,140

7,633,911

5.63%,

05/15/52

.................

11,645

9,634,939

266,913,402

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

57

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Food

&

Staples

Retailing

—

0.6%

Albertsons

Cos.,

Inc.

(c)

3.25%,

03/15/26

.................

USD

14,847

$

13,040,669

4.63%,

01/15/27

.................

19,540

17,465,270

5.88%,

02/15/28

.................

3,944

3,638,340

3.50%,

03/15/29

.................

9,367

7,549,802

4.88%,

02/15/30

.................

5,645

4,775,727

Bellis

Acquisition

Co.

plc

(b)

3.25%,

02/16/26

.................

GBP

1,500

1,260,336

4.50%,

02/16/26

.................

2,726

2,337,220

Casino

Guichard

Perrachon

SA

(b)

(EURIBOR

Swap

Rate

5

Year

+

3.82%),

3.99%

(a)(j)

....................

EUR

1,600

514,801

3.58%,

02/07/25

(l)

................

1,400

794,332

6.63%,

01/15/26

.................

600

300,483

5.25%,

04/15/27

.................

866

409,509

Iceland

Bondco

plc,

4.63%,

03/15/25

(b)

....

GBP

1,800

1,507,342

Ocado

Group

plc,

3.88%,

10/08/26

(b)

.....

1,848

1,505,066

Performance

Food

Group,

Inc.

(c)

5.50%,

10/15/27

.................

USD

2,942

2,673,778

4.25%,

08/01/29

.................

28,973

24,122,920

Picard

Groupe

SAS,

3.88%,

07/01/26

(b)

...

EUR

500

409,171

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

(c)

USD

3,486

3,188,296

US

Foods,

Inc.

(c)

6.25%,

04/15/25

.................

6,772

6,652,136

4.75%,

02/15/29

.................

12,453

10,659,768

4.63%,

06/01/30

.................

5,285

4,373,364

107,178,330

Food

Products

—

1.7%

Chobani

LLC

(c)

7.50%,

04/15/25

.................

66,701

61,019,409

4.63%,

11/15/28

.................

41,885

35,624,868

Darling

Global

Finance

BV,

3.63%,

05/15/26

(b)

EUR

1,974

1,818,542

Darling

Ingredients,

Inc.

(c)

5.25%,

04/15/27

.................

USD

394

371,604

6.00%,

06/15/30

.................

27,123

25,812,688

JBS

USA

LUX

SA,

3.75%,

12/01/31

(c)

.....

16,723

13,387,430

Kraft

Heinz

Foods

Co.

6.50%,

02/09/40

.................

8,755

8,797,800

4.88%,

10/01/49

.................

44,521

36,693,547

5.50%,

06/01/50

.................

50,123

45,089,595

Lamb

Weston

Holdings,

Inc.

(c)

4.88%,

05/15/28

.................

19,294

17,502,166

4.13%,

01/31/30

.................

15,789

13,361,284

4.38%,

01/31/32

.................

15,929

13,161,336

Pilgrim's

Pride

Corp.,

3.50%,

03/01/32

(c)

...

9,812

7,396,972

Post

Holdings,

Inc.

(c)

5.75%,

03/01/27

.................

98

93,473

4.63%,

04/15/30

.................

1,183

971,539

Premier

Foods

Finance

plc,

3.50%,

10/15/26

(b)

GBP

469

416,311

Simmons

Foods,

Inc.,

4.63%,

03/01/29

(c)

...

USD

14,775

12,078,563

293,597,127

Gas

Utilities

—

0.0%

Suburban

Propane

Partners

LP,

5.00%,

06/01/31

(c)

....................

5,099

4,185,259

UGI

International

LLC,

2.50%,

12/01/29

(b)

..

EUR

1,574

1,147,829

5,333,088

Health

Care

Equipment

&

Supplies

—

0.8%

Avantor

Funding,

Inc.

3.88%,

07/15/28

(b)

................

1,235

1,041,136

4.63%,

07/15/28

(c)

................

USD

29,217

26,001,523

3.88%,

11/01/29

(c)

................

14,425

11,715,985

Embecta

Corp.,

6.75%,

02/15/30

(c)

......

9,135

8,433,558

Garden

Spinco

Corp.,

8.63%,

07/20/30

(c)

...

11,428

11,806,609

Hologic,

Inc.,

3.25%,

02/15/29

(c)

........

2,728

2,230,925

Security

Par

(000)

Par

(000)

Value

Health

Care

Equipment

&

Supplies

(continued)

Medline

Borrower

LP

(c)

3.88%,

04/01/29

.................

USD

23,168

$

18,573,554

5.25%,

10/01/29

.................

77,397

58,434,735

Teleflex,

Inc.

4.63%,

11/15/27

.................

3,408

3,070,319

4.25%,

06/01/28

(c)

................

4,023

3,499,085

144,807,429

Health

Care

Providers

&

Services

—

3.3%

180

Medical,

Inc.,

3.88%,

10/15/29

(c)

.....

4,975

4,121,638

Acadia

Healthcare

Co.,

Inc.

(c)

5.50%,

07/01/28

.................

4,633

4,227,774

5.00%,

04/15/29

.................

1,394

1,234,545

AdaptHealth

LLC

(c)

6.13%,

08/01/28

.................

3,859

3,456,508

5.13%,

03/01/30

.................

3,371

2,779,474

AHP

Health

Partners,

Inc.,

5.75%,

07/15/29

(c)

20,497

15,885,175

Cano

Health

LLC,

6.25%,

10/01/28

(c)

.....

8,374

7,910,164

Centene

Corp.

2.45%,

07/15/28

.................

40,226

32,752,814

4.63%,

12/15/29

.................

4,012

3,605,183

3.00%,

10/15/30

.................

73,289

58,040,491

2.50%,

03/01/31

.................

74,395

56,077,585

2.63%,

08/01/31

.................

23,150

17,447,537

Chrome

Bidco

SASU,

3.50%,

05/31/28

(b)

...

EUR

700

542,827

Community

Health

Systems,

Inc.

(c)

8.00%,

03/15/26

.................

USD

3,399

2,942,811

5.63%,

03/15/27

.................

24,389

18,772,213

6.00%,

01/15/29

.................

27,485

20,201,110

5.25%,

05/15/30

.................

5,127

3,569,674

Encompass

Health

Corp.

4.50%,

02/01/28

.................

1,364

1,168,256

4.75%,

02/01/30

.................

31,187

25,656,790

4.63%,

04/01/31

.................

12,889

10,185,632

HCA,

Inc.,

4.63%,

03/15/52

(c)

..........

17,510

13,151,810

HealthEquity,

Inc.,

4.50%,

10/01/29

(c)

.....

31,268

26,413,330

Korian

SA,

(U.K.

Government

Bonds

5

Year

Note

Generic

Bid

Yield

+

9.08%),

4.13%

(a)(b)(j)

GBP

2,500

2,093,699

Legacy

LifePoint

Health

LLC

(c)

6.75%,

04/15/25

.................

USD

11,569

10,946,762

4.38%,

02/15/27

.................

2,392

1,976,585

LifePoint

Health,

Inc.,

5.38%,

01/15/29

(c)

...

10,382

7,238,400

ModivCare,

Inc.,

5.88%,

11/15/25

(c)

......

4,722

4,358,000

Molina

Healthcare,

Inc.

(c)

4.38%,

06/15/28

.................

6,668

6,017,870

3.88%,

11/15/30

.................

5,310

4,456,524

3.88%,

05/15/32

.................

13,960

11,435,006

Option

Care

Health,

Inc.,

4.38%,

10/31/29

(c)

.

13,986

11,818,170

Owens

&

Minor,

Inc.,

6.63%,

04/01/30

(c)

...

527

463,760

Prime

Healthcare

Services,

Inc.,

7.25%,

11/01/25

(c)

....................

25,175

22,469,946

RegionalCare

Hospital

Partners

Holdings,

Inc.,

9.75%,

12/01/26

(c)

...............

4,145

3,708,946

Surgery

Center

Holdings,

Inc.

(c)

6.75%,

07/01/25

.................

36,479

33,712,453

10.00%,

04/15/27

................

22,320

21,705,977

Tenet

Healthcare

Corp.

4.63%,

07/15/24

.................

3,502

3,386,364

4.63%,

09/01/24

(c)

................

11,186

10,826,258

4.88%,

01/01/26

(c)

................

33,177

30,830,391

6.25%,

02/01/27

(c)

................

18,573

17,331,395

5.13%,

11/01/27

(c)

................

11,449

10,273,045

4.63%,

06/15/28

(c)

................

923

806,671

6.13%,

10/01/28

(c)

................

3,508

3,073,319

4.25%,

06/01/29

(c)

................

2,479

2,053,232

4.38%,

01/15/30

(c)

................

4,042

3,373,857

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

58

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

6.13%,

06/15/30

(c)

................

USD

28,973

$

26,539,268

581,039,239

Health

Care

Technology

—

0.1%

IQVIA,

Inc.

1.75%,

03/15/26

(b)

................

EUR

2,964

2,515,035

5.00%,

10/15/26

(c)

................

USD

12,786

12,183,236

5.00%,

05/15/27

(c)

................

2,717

2,533,603

2.25%,

03/15/29

(b)

................

EUR

600

448,508

17,680,382

Hotels,

Restaurants

&

Leisure

—

5.0%

1011778

BC

ULC

(c)

5.75%,

04/15/25

.................

USD

5,262

5,213,340

3.88%,

01/15/28

.................

3,498

3,043,994

4.38%,

01/15/28

.................

16,148

13,992,242

4.00%,

10/15/30

.................

8,338

6,566,842

Accor

SA,

0.70%,

12/07/27

(b)(h)

.........

EUR

2,453

907,772

Aramark

International

Finance

SARL,

3.13%,

04/01/25

(b)

....................

3,438

3,089,751

Boyd

Gaming

Corp.

4.75%,

12/01/27

.................

USD

9,450

8,363,344

4.75%,

06/15/31

(c)

................

12,498

10,119,631

Boyne

USA,

Inc.,

4.75%,

05/15/29

(c)

.....

21,030

17,617,554

Caesars

Entertainment,

Inc.

(c)

6.25%,

07/01/25

.................

60,342

58,154,602

8.13%,

07/01/27

.................

67,330

64,305,873

4.63%,

10/15/29

.................

51,771

39,557,318

Caesars

Resort

Collection

LLC,

5.75%,

07/01/25

(c)

....................

7,345

7,087,190

Carnival

Corp.

10.13%,

02/01/26

(b)

...............

EUR

2,776

2,679,809

10.50%,

02/01/26

(c)

...............

USD

45,140

44,661,967

7.63%,

03/01/26

(c)

................

5,263

3,999,880

7.63%,

03/01/26

(b)

................

EUR

757

582,077

5.75%,

03/01/27

(c)

................

USD

56,501

39,581,776

9.88%,

08/01/27

(c)

................

24,739

24,244,220

4.00%,

08/01/28

(c)

................

33,794

27,262,972

6.00%,

05/01/29

(c)

................

23,137

15,191,060

CCM

Merger,

Inc.,

6.38%,

05/01/26

(c)

.....

13,107

11,960,793

CDI

Escrow

Issuer,

Inc.,

5.75%,

04/01/30

(c)

.

37,205

32,491,685

Cedar

Fair

LP

5.50%,

05/01/25

(c)

................

10,163

9,776,094

6.50%,

10/01/28

.................

3,917

3,623,225

5.25%,

07/15/29

.................

1,701

1,459,620

Churchill

Downs,

Inc.

(c)

5.50%,

04/01/27

.................

18,511

17,128,969

4.75%,

01/15/28

.................

16,177

13,994,345

Cirsa

Finance

International

SARL,

4.75%,

05/22/25

(b)

....................

EUR

1,557

1,358,085

Codere

Finance

2

Luxembourg

SA

(

i

)

8.00%,

(8.00%

Cash

or

11.00%

PIK),

09/30/26

(b)(l)

..................

3,307

3,042,785

2.00%,

(2.00%

Cash

or

13.63%

PIK),

11/30/27

(a)(c)

..................

USD

350

298,796

2.00%,

(2.00%

Cash

or

12.75%

PIK),

11/30/27

(a)(b)

..................

EUR

609

489,068

CPUK

Finance

Ltd.

(b)

4.88%,

08/28/25

.................

GBP

1,750

1,774,198

4.50%,

08/28/27

.................

200

186,313

Fertitta

Entertainment

LLC

(c)

4.63%,

01/15/29

.................

USD

2,463

2,038,133

6.75%,

01/15/30

.................

3,788

2,876,853

Food

Service

Project

SA,

5.50%,

01/21/27

(b)

EUR

1,116

935,144

Gamma

Bidco

SpA

(b)

5.13%,

07/15/25

.................

400

351,325

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

6.25%,

07/15/25

.................

EUR

2,472

$

2,215,399

Hilton

Domestic

Operating

Co.,

Inc.

5.38%,

05/01/25

(c)

................

USD

5,562

5,436,034

5.75%,

05/01/28

(c)

................

5,810

5,432,350

3.75%,

05/01/29

(c)

................

9,095

7,510,469

4.88%,

01/15/30

.................

23,969

20,853,030

4.00%,

05/01/31

(c)

................

6,324

5,111,879

3.63%,

02/15/32

(c)

................

7,490

5,736,581

Hilton

Worldwide

Finance

LLC,

4.88%,

04/01/27

.....................

2,120

1,945,100

Inter

Media

&

Communication

SpA,

6.75%,

02/09/27

(b)

....................

EUR

639

579,266

IRB

Holding

Corp.,

7.00%,

06/15/25

(c)

....

USD

8,718

8,662,815

Life

Time,

Inc.

(c)

5.75%,

01/15/26

.................

12,356

11,243,960

8.00%,

04/15/26

.................

12,109

10,353,195

Lindblad

Expeditions

LLC,

6.75%,

02/15/27

(c)

17,701

15,576,880

MajorDrive

Holdings

IV

LLC,

6.38%,

06/01/29

(c)

11,924

8,221,003

Merlin

Entertainments

Ltd.,

5.75%,

06/15/26

(c)

12,364

11,508,968

MGM

Resorts

International,

5.75%,

06/15/25

744

711,018

Midwest

Gaming

Borrower

LLC,

4.88%,

05/01/29

(c)

....................

13,007

10,714,841

Motion

Bondco

DAC,

6.63%,

11/15/27

(c)

...

4,784

4,048,460

NCL

Corp.

Ltd.

(c)

3.63%,

12/15/24

.................

1,448

1,217,704

5.88%,

03/15/26

.................

17,406

13,241,441

7.75%,

02/15/29

.................

6,792

5,125,922

NCL

Finance

Ltd.,

6.13%,

03/15/28

(c)

.....

8,852

6,528,130

Peninsula

Pacific

Entertainment

LLC,

8.50%,

11/15/27

(c)

....................

15,031

16,177,114

Premier

Entertainment

Sub

LLC

(c)

5.63%,

09/01/29

.................

6,317

4,372,880

5.88%,

09/01/31

.................

5,871

3,962,925

Raptor

Acquisition

Corp.,

4.88%,

11/01/26

(c)

.

10,076

8,665,616

Royal

Caribbean

Cruises

Ltd.

(c)

10.88%,

06/01/23

................

6,111

6,248,497

9.13%,

06/15/23

.................

4,493

4,571,628

11.50%,

06/01/25

................

8,149

8,658,312

5.50%,

08/31/26

.................

6,299

4,818,735

5.38%,

07/15/27

.................

13,252

9,747,376

11.63%,

08/15/27

................

11,332

10,312,347

5.50%,

04/01/28

.................

4,773

3,344,155

8.25%,

01/15/29

.................

11,137

10,840,366

9.25%,

01/15/29

.................

15,138

14,916,304

Scientific

Games

International,

Inc.

(c)

8.63%,

07/01/25

.................

8,429

8,629,526

7.00%,

05/15/28

.................

7,109

6,702,721

7.25%,

11/15/29

.................

4,781

4,449,724

Six

Flags

Entertainment

Corp.,

5.50%,

04/15/27

(c)

....................

6,500

5,707,585

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

(c)

8,275

8,271,515

Station

Casinos

LLC

(c)

4.50%,

02/15/28

.................

12,401

10,178,329

4.63%,

12/01/31

.................

12,586

9,506,018

Stonegate

Pub

Co.

Financing

plc,

8.00%,

07/13/25

(b)

....................

GBP

1,000

973,073

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(c)

.....

USD

10,406

10,264,687

Viking

Ocean

Cruises

Ship

VII

Ltd.,

5.63%,

02/15/29

(c)

....................

11,240

8,739,100

Wyndham

Hotels

&

Resorts,

Inc.,

4.38%,

08/15/28

(c)

....................

4,416

3,881,774

Wynn

Resorts

Finance

LLC

(c)

7.75%,

04/15/25

.................

7,193

7,026,211

5.13%,

10/01/29

.................

29,597

23,920,295

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

59

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Yum!

Brands,

Inc.

4.75%,

01/15/30

(c)

................

USD

1,103

$

963,923

5.38%,

04/01/32

.................

5,008

4,440,285

5.35%,

11/01/43

.................

718

570,137

882,844,248

Household

Durables

—

0.8%

Ashton

Woods

USA

LLC

(c)

6.63%,

01/15/28

.................

1,575

1,319,924

4.63%,

08/01/29

.................

4,879

3,542,410

4.63%,

04/01/30

.................

6,214

4,450,156

Brookfield

Residential

Properties,

Inc.

(c)

5.00%,

06/15/29

.................

12,607

9,332,584

4.88%,

02/15/30

.................

15,788

11,687,304

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(c)

14,315

12,975,407

Installed

Building

Products,

Inc.,

5.75%,

02/01/28

(c)

....................

6,390

5,718,727

K.

Hovnanian

Enterprises,

Inc.

(c)

10.00%,

11/15/25

................

4,335

4,551,750

7.75%,

02/15/26

.................

13,640

13,094,400

KB

Home,

7.25%,

07/15/30

...........

3,904

3,542,880

Mattamy

Group

Corp.

(c)

5.25%,

12/15/27

.................

8,399

6,961,742

4.63%,

03/01/30

.................

6,067

4,633,338

Meritage

Homes

Corp.,

5.13%,

06/06/27

...

2,751

2,438,013

Picasso

Finance

Sub,

Inc.,

6.13%,

06/15/25

(c)

8,960

8,781,875

SWF

Escrow

Issuer

Corp.,

6.50%,

10/01/29

(c)

23,509

13,929,082

Taylor

Morrison

Communities,

Inc.

(c)

5.88%,

06/15/27

.................

6,829

6,359,506

5.13%,

08/01/30

.................

4,190

3,382,189

Tempur

Sealy

International,

Inc.

(c)

4.00%,

04/15/29

.................

11,333

8,930,677

3.88%,

10/15/31

.................

9,652

7,070,090

TRI

Pointe

Homes,

Inc.

5.25%,

06/01/27

.................

4,958

4,287,183

5.70%,

06/15/28

.................

3,737

3,178,899

140,168,136

Household

Products

—

0.2%

Central

Garden

&

Pet

Co.

4.13%,

10/15/30

.................

6,992

5,565,457

4.13%,

04/30/31

(c)

................

9,077

7,136,791

Energizer

Holdings,

Inc.

(c)

6.50%,

12/31/27

.................

7,123

6,323,016

4.75%,

06/15/28

.................

2,865

2,269,911

Spectrum

Brands,

Inc.

5.75%,

07/15/25

.................

61

57,647

5.00%,

10/01/29

(c)

................

3,830

3,046,725

3.88%,

03/15/31

(c)

................

4,450

3,033,921

27,433,468

Independent

Power

and

Renewable

Electricity

Producers

—

0.3%

(c)

Calpine

Corp.

5.25%,

06/01/26

.................

1,197

1,128,352

5.13%,

03/15/28

.................

29,891

25,672,379

4.63%,

02/01/29

.................

629

512,547

5.00%,

02/01/31

.................

1,528

1,214,084

Clearway

Energy

Operating

LLC

4.75%,

03/15/28

.................

7,023

6,253,284

3.75%,

01/15/32

.................

21,429

16,612,404

51,393,050

Insurance

—

2.6%

Acrisure

LLC,

6.00%,

08/01/29

(c)

........

10,864

8,365,280

Alliant

Holdings

Intermediate

LLC

(c)

4.25%,

10/15/27

.................

77,313

66,039,047

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

6.75%,

10/15/27

.................

USD

121,841

$

105,001,236

5.88%,

11/01/29

.................

82,253

66,807,671

AmWINS

Group,

Inc.,

4.88%,

06/30/29

(c)

...

14,774

12,263,343

Ardonagh

Midco

2

plc,

11.50%,

(11.50%

Cash

or

12.75%

PIK),

01/15/27

(c)(i)

.........

7,649

7,764,055

BUPA

Finance

plc,

(U.K.

Government

Bonds

5

Year

Note

Generic

Bid

Yield

+

3.17%),

4.00%

(a)(b)(j)

...................

GBP

700

462,659

Galaxy

Bidco

Ltd.,

6.50%,

07/31/26

(b)

.....

2,184

1,987,414

GTCR

AP

Finance,

Inc.,

8.00%,

05/15/27

(c)

.

USD

8,330

7,663,138

HUB

International

Ltd.

(c)

7.00%,

05/01/26

.................

47,956

45,482,190

5.63%,

12/01/29

.................

3,315

2,768,025

Liberty

Mutual

Group,

Inc.,

(EUR

Swap

Annual

5

Year

+

3.70%),

3.63%,

05/23/59

(a)(b)

...

EUR

1,870

1,557,936

NFP

Corp.

(c)

4.88%,

08/15/28

.................

USD

38,705

33,027,557

6.88%,

08/15/28

.................

104,696

81,662,880

7.50%,

10/01/30

.................

6,736

6,391,809

Ryan

Specialty

Group

LLC,

4.38%,

02/01/30

(c)

8,762

7,431,381

454,675,621

Interactive

Media

&

Services

—

0.2%

Twitter,

Inc.

(c)

3.88%,

12/15/27

.................

20,923

19,620,025

5.00%,

03/01/30

.................

8,779

8,413,003

28,033,028

Internet

&

Direct

Marketing

Retail

—

0.3%

ANGI

Group

LLC,

3.88%,

08/15/28

(c)

.....

14,121

9,959,789

Go

Daddy

Operating

Co.

LLC

(c)

5.25%,

12/01/27

.................

6,055

5,576,781

3.50%,

03/01/29

.................

9,073

7,420,625

Match

Group

Holdings

II

LLC

(c)

4.63%,

06/01/28

.................

11,281

9,856,774

5.63%,

02/15/29

.................

72

65,558

4.13%,

08/01/30

.................

3,886

3,191,378

3.63%,

10/01/31

.................

11,905

8,988,275

Very

Group

Funding

plc

(The),

6.50%,

08/01/26

(b)

....................

GBP

1,238

950,324

46,009,504

IT

Services

—

1.8%

Acuris

Finance

US,

Inc.,

5.00%,

05/01/28

(c)

.

USD

29,161

24,349,435

Ahead

DB

Holdings

LLC,

6.63%,

05/01/28

(c)

.

9,671

8,243,399

Arches

Buyer,

Inc.,

4.25%,

06/01/28

(c)

....

1,505

1,173,900

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(c)

12,534

10,685,235

Block,

Inc.

2.75%,

06/01/26

.................

4,000

3,437,847

3.50%,

06/01/31

.................

79,845

61,905,026

Booz

Allen

Hamilton,

Inc.

(c)

3.88%,

09/01/28

.................

13,098

11,267,726

4.00%,

07/01/29

.................

20,104

17,200,205

CA

Magnum

Holdings,

5.38%,

10/31/26

(c)

..

32,633

27,248,555

Cablevision

Lightpath

LLC

(c)

3.88%,

09/15/27

.................

7,860

6,574,707

5.63%,

09/15/28

.................

4,738

3,790,400

Centurion

Bidco

SpA,

5.88%,

09/30/26

(b)

...

EUR

1,068

916,066

Endurance

International

Group

Holdings,

Inc.,

6.00%,

02/15/29

(c)

...............

USD

8,959

5,947,419

Gartner,

Inc.

(c)

4.50%,

07/01/28

.................

12,505

11,181,971

3.63%,

06/15/29

.................

5,862

4,880,115

3.75%,

10/01/30

.................

5,851

4,789,891

Global

Payments,

Inc.

4.95%,

08/15/27

.................

4,600

4,382,606

5.40%,

08/15/32

.................

18,523

17,188,806

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

60

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

IT

Services

(continued)

5.95%,

08/15/52

.................

USD

23,417

$

20,631,244

ION

Trading

Technologies

SARL,

5.75%,

05/15/28

(c)

....................

9,886

8,057,090

Nexi

SpA,

0.00%,

02/24/28

(b)(h)(m)

........

EUR

1,500

1,023,907

Northwest

Fiber

LLC

(c)

4.75%,

04/30/27

.................

USD

15,030

13,076,100

6.00%,

02/15/28

.................

14,098

10,928,175

10.75%,

06/01/28

................

6,083

5,665,600

Tempo

Acquisition

LLC,

5.75%,

06/01/25

(c)

.

20,514

19,989,707

Twilio,

Inc.,

3.88%,

03/15/31

..........

22,445

17,618,697

United

Group

BV

(b)

4.88%,

07/01/24

.................

EUR

2,996

2,727,053

4.00%,

11/15/27

.................

4,099

2,829,026

327,709,908

Leisure

Products

—

0.2%

Mattel,

Inc.

3.75%,

04/01/29

(c)

................

USD

5,723

4,811,870

6.20%,

10/01/40

.................

12,474

11,741,693

5.45%,

11/01/41

.................

22,266

18,654,165

35,207,728

Life

Sciences

Tools

&

Services

—

0.3%

(c)

Charles

River

Laboratories

International,

Inc.

4.25%,

05/01/28

.................

4,643

4,043,449

3.75%,

03/15/29

.................

1,064

885,046

4.00%,

03/15/31

.................

4,889

3,942,605

PRA

Health

Sciences,

Inc.,

2.88%,

07/15/26

17,634

15,515,222

Syneos

Health,

Inc.,

3.63%,

01/15/29

....

45,311

36,080,243

60,466,565

Machinery

—

1.2%

Amsted

Industries,

Inc.,

5.63%,

07/01/27

(c)

.

11,691

10,755,720

ATS

Automation

Tooling

Systems,

Inc.,

4.13%,

12/15/28

(c)

....................

6,818

5,653,179

EnPro

Industries,

Inc.,

5.75%,

10/15/26

...

6,448

6,206,200

GrafTech

Finance,

Inc.,

4.63%,

12/15/28

(c)

..

10,037

7,502,657

Husky

III

Holding

Ltd.,

13.00%,

(13.00%

Cash

or

13.75%

PIK),

02/15/25

(c)(i)

.........

19,436

18,221,250

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

(c)

6,469

5,505,184

Novafives

SAS,

5.00%,

06/15/25

(b)

......

EUR

1,000

614,766

OT

Merger

Corp.,

7.88%,

10/15/29

(c)

.....

USD

7,687

5,207,943

Renk

AG,

5.75%,

07/15/25

(b)

..........

EUR

621

556,191

Roller

Bearing

Co.

of

America,

Inc.,

4.38%,

10/15/29

(c)

....................

USD

8,964

7,561,044

Schenck

Process

Holding

GmbH,

5.38%,

06/15/23

(b)

....................

EUR

2,723

2,598,623

Stevens

Holding

Co.,

Inc.,

6.13%,

10/01/26

(c)

USD

6,116

5,977,167

Terex

Corp.,

5.00%,

05/15/29

(c)

........

20,771

17,826,420

Titan

Acquisition

Ltd.,

7.75%,

04/15/26

(c)

...

33,584

26,545,849

Titan

International,

Inc.,

7.00%,

04/30/28

..

4,434

4,023,013

TK

Elevator

Holdco

GmbH

6.63%,

07/15/28

(b)

................

EUR

1,800

1,384,811

7.63%,

07/15/28

(c)

................

USD

14,812

12,405,050

TK

Elevator

Midco

GmbH

4.38%,

07/15/27

(b)

................

EUR

8,054

6,610,658

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(c)

USD

59,758

50,806,849

Wabash

National

Corp.,

4.50%,

10/15/28

(c)

.

12,338

9,564,479

205,527,053

Marine

—

0.1%

(c)

Danaos

Corp.,

8.50%,

03/01/28

........

2,242

2,151,111

Seaspan

Corp.,

5.50%,

08/01/29

.......

13,252

10,469,080

12,620,191

Security

Par

(000)

Par

(000)

Value

Media

—

5.5%

Adelphia

Communications

Corp.,Escrow,

Series

B,

10.50%,

07/15/04

(d)(e)(k)

......

USD

800

$

—

Altice

Financing

SA

2.25%,

01/15/25

(b)

................

EUR

1,451

1,248,847

3.00%,

01/15/28

(b)

................

949

699,299

5.00%,

01/15/28

(c)

................

USD

13,351

10,284,008

4.25%,

08/15/29

(b)

................

EUR

1,932

1,462,847

5.75%,

08/15/29

(c)

................

USD

57,697

44,150,898

AMC

Networks,

Inc.

4.75%,

08/01/25

.................

6,612

5,908,032

4.25%,

02/15/29

.................

4,970

3,674,622

Block

Communications,

Inc.,

4.88%,

03/01/28

(c)

6,846

5,921,790

Cable

One,

Inc.

1.13%,

03/15/28

(h)

................

16,595

11,948,400

4.00%,

11/15/30

(c)

................

25,803

20,085,313

Century

Communications

Corp.

Escrow,

0.00%,

03/15/13

(d)(e)(k)

..................

625

—

Charter

Communications

Operating

LLC

5.25%,

04/01/53

.................

21,719

16,631,440

5.50%,

04/01/63

.................

14,478

10,938,244

Clear

Channel

International

BV,

6.63%,

08/01/25

(c)

....................

25,126

23,347,299

Clear

Channel

Outdoor

Holdings,

Inc.

(c)

5.13%,

08/15/27

.................

71,223

60,164,715

7.75%,

04/15/28

.................

60,167

45,426,085

7.50%,

06/01/29

.................

66,062

47,894,950

CMG

Media

Corp.,

8.88%,

12/15/27

(c)

....

25,057

19,142,671

CSC

Holdings

LLC

5.25%,

06/01/24

.................

10,825

10,013,125

5.75%,

01/15/30

(c)

................

12,310

8,749,517

4.13%,

12/01/30

(c)

................

48,102

35,941,815

4.63%,

12/01/30

(c)

................

15,282

10,391,760

3.38%,

02/15/31

(c)

................

11,899

8,388,795

4.50%,

11/15/31

(c)

................

22,991

17,270,379

Directv

Financing

LLC,

5.88%,

08/15/27

(c)

..

11,337

9,773,741

DISH

DBS

Corp.

5.25%,

12/01/26

(c)

................

61,801

50,630,275

5.75%,

12/01/28

(c)

................

58,086

43,897,914

5.13%,

06/01/29

.................

21,853

12,838,637

GCI

LLC,

4.75%,

10/15/28

(c)

..........

10,809

8,974,226

Lamar

Media

Corp.,

3.75%,

02/15/28

.....

2,767

2,417,016

LCPR

Senior

Secured

Financing

DAC

(c)

6.75%,

10/15/27

.................

25,441

21,116,030

5.13%,

07/15/29

.................

20,613

15,522,969

Liberty

Broadband

Corp.

(c)(h)

1.25%,

09/30/50

.................

27,902

26,367,390

2.75%,

09/30/50

.................

57,437

55,066,232

Midcontinent

Communications,

5.38%,

08/15/27

(c)

....................

8,651

7,707,657

Outfront

Media

Capital

LLC

(c)

5.00%,

08/15/27

.................

9,576

8,365,115

4.25%,

01/15/29

.................

6,456

5,071,188

4.63%,

03/15/30

.................

905

705,120

Radiate

Holdco

LLC

(c)

4.50%,

09/15/26

.................

25,898

21,242,317

6.50%,

09/15/28

.................

79,145

55,203,637

Scripps

Escrow

II,

Inc.,

3.88%,

01/15/29

(c)

..

1,213

967,004

SES

SA

(a)(b)(j)

(EUR

Swap

Annual

5

Year

+

5.40%),

5.63%

EUR

1,200

1,127,606

(EUR

Swap

Annual

5

Year

+

3.19%),

2.88%

1,000

727,860

Sinclair

Television

Group,

Inc.,

4.13%,

12/01/30

(c)

....................

USD

42,743

32,164,108

Sirius

XM

Radio,

Inc.

(c)

3.13%,

09/01/26

.................

23,577

20,705,911

5.00%,

08/01/27

.................

24,738

22,697,115

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

61

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Media

(continued)

4.00%,

07/15/28

.................

USD

4,835

$

4,112,554

5.50%,

07/01/29

.................

5,366

4,826,623

4.13%,

07/01/30

.................

699

568,175

3.88%,

09/01/31

.................

26,642

20,659,273

Stagwell

Global

LLC,

5.63%,

08/15/29

(c)

...

5,853

4,814,502

Summer

BC

Bidco

B

LLC,

5.50%,

10/31/26

(c)

200

164,211

Summer

BC

Holdco

B

SARL,

5.75%,

10/31/26

(b)

....................

EUR

3,351

2,792,182

Summer

BidCo

BV

(b)(

i

)

9.00%,

(9.00%

Cash

or

9.75%

PIK),

11/15/25

(a)

...................

1,551

1,060,727

9.00%,

(9.00%

Cash

or

9.75%

PIK),

11/15/25

....................

1,222

831,847

Tele

Columbus

AG,

3.88%,

05/02/25

(b)

....

2,990

2,363,057

Telenet

Finance

Luxembourg

Notes

SARL,

5.50%,

03/01/28

(c)

...............

USD

6,200

5,377,074

Univision

Communications,

Inc.

(c)

5.13%,

02/15/25

.................

7,513

7,132,617

6.63%,

06/01/27

.................

10,022

9,457,887

7.38%,

06/30/30

.................

11,863

11,320,801

UPC

Broadband

Finco

BV,

4.88%,

07/15/31

(c)

17,674

13,715,554

UPCB

Finance

VII

Ltd.,

3.63%,

06/15/29

(b)

..

EUR

1,019

796,320

Videotron

Ltd.,

3.63%,

06/15/29

(c)

.......

USD

15,080

12,214,649

Virgin

Media

Vendor

Financing

Notes

III

DAC,

4.88%,

07/15/28

(b)

...............

GBP

1,427

1,185,517

Virgin

Media

Vendor

Financing

Notes

IV

DAC,

5.00%,

07/15/28

(c)

...............

USD

27,420

22,175,925

VZ

Secured

Financing

BV,

3.50%,

01/15/32

(b)

EUR

1,537

1,077,031

Ziggo

Bond

Co.

BV

(c)

6.00%,

01/15/27

.................

USD

3,625

3,026,875

5.13%,

02/28/30

.................

5,680

4,061,200

Ziggo

BV

2.88%,

01/15/30

(b)

................

EUR

500

358,943

4.88%,

01/15/30

(c)

................

USD

3,105

2,452,950

979,520,413

Metals

&

Mining

—

2.2%

Arconic

Corp.

(c)

6.00%,

05/15/25

.................

1,118

1,076,148

6.13%,

02/15/28

.................

23,439

20,704,372

ATI,

Inc.

4.88%,

10/01/29

.................

7,847

6,515,142

5.13%,

10/01/31

.................

14,354

11,726,205

Big

River

Steel

LLC,

6.63%,

01/31/29

(c)

...

63,345

58,301,471

Carpenter

Technology

Corp.

6.38%,

07/15/28

.................

2,229

2,067,175

7.63%,

03/15/30

.................

20,813

20,038,756

Commercial

Metals

Co.

4.13%,

01/15/30

.................

4,582

3,761,895

4.38%,

03/15/32

.................

4,902

3,872,580

Constellium

SE

4.25%,

02/15/26

(b)

................

EUR

4,219

3,700,674

5.88%,

02/15/26

(c)

................

USD

11,277

10,346,647

5.63%,

06/15/28

(c)

................

20,260

16,616,320

3.75%,

04/15/29

(c)

................

50,390

36,788,782

ERO

Copper

Corp.,

6.50%,

02/15/30

(c)

....

8,555

6,421,597

FMG

Resources

August

2006

Pty.

Ltd.,

6.13%,

04/15/32

(c)

....................

25,033

21,509,605

Kaiser

Aluminum

Corp.

(c)

4.63%,

03/01/28

.................

12,001

9,791,843

4.50%,

06/01/31

.................

21,557

15,774,119

Mineral

Resources

Ltd.,

8.50%,

05/01/30

(c)

.

7,566

7,311,782

New

Gold,

Inc.,

7.50%,

07/15/27

(c)

......

18,535

14,642,650

Novelis

Corp.

(c)

3.25%,

11/15/26

.................

39,627

33,077,846

4.75%,

01/30/30

.................

45,276

37,126,320

Security

Par

(000)

Par

(000)

Value

Metals

&

Mining

(continued)

3.88%,

08/15/31

.................

USD

33,502

$

24,989,812

Novelis

Sheet

Ingot

GmbH,

3.38%,

04/15/29

(b)

EUR

13,100

10,081,554

United

States

Steel

Corp.,

6.88%,

03/01/29

.

USD

4,824

4,384,292

Vedanta

Resources

Finance

II

plc,

8.95%,

03/11/25

(c)

....................

6,297

4,266,218

384,893,805

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.

(c)

5.50%,

11/01/23

.................

2,231

2,191,957

4.38%,

01/15/27

.................

5,032

4,289,705

6,481,662

Multiline

Retail

—

0.1%

NMG

Holding

Co.,

Inc.,

7.13%,

04/01/26

(c)

..

18,302

16,816,826

Oil,

Gas

&

Consumable

Fuels

—

10.2%

Aethon

United

BR

LP,

8.25%,

02/15/26

(c)

...

44,689

43,184,768

Antero

Midstream

Partners

LP

(c)

5.75%,

03/01/27

.................

6,650

6,150,366

5.38%,

06/15/29

.................

12,538

11,069,800

Antero

Resources

Corp.,

7.63%,

02/01/29

(c)

.

3,969

3,961,657

Apache

Corp.

4.25%,

01/15/30

.................

9,004

7,873,998

5.10%,

09/01/40

.................

13,153

10,617,957

5.35%,

07/01/49

.................

13,072

10,261,520

Ascent

Resources

Utica

Holdings

LLC

9.00%,

11/01/27

(b)

................

215

262,258

9.00%,

11/01/27

(c)

................

44,776

54,617,936

8.25%,

12/31/28

(c)

................

1,027

986,817

5.88%,

06/30/29

(c)

................

14,191

12,629,990

BP

Capital

Markets

plc,

(U.K.

Government

Bonds

5

Year

Note

Generic

Bid

Yield

+

4.17%),

4.25%

(a)(b)(j)

..............

GBP

575

537,689

Buckeye

Partners

LP

4.13%,

03/01/25

(c)

................

USD

361

330,405

5.85%,

11/15/43

.................

5,448

4,035,601

5.60%,

10/15/44

.................

5,428

3,810,380

Callon

Petroleum

Co.

6.38%,

07/01/26

.................

12,004

10,816,684

8.00%,

08/01/28

(c)

................

45,873

42,317,843

7.50%,

06/15/30

(c)

................

37,360

32,708,867

Cheniere

Energy

Partners

LP

4.50%,

10/01/29

.................

42,021

36,994,868

4.00%,

03/01/31

.................

42,056

35,263,115

3.25%,

01/31/32

.................

38,946

29,904,881

Chesapeake

Energy

Corp.,

6.75%,

04/15/29

(c)

25,171

24,129,424

CITGO

Petroleum

Corp.

(c)

7.00%,

06/15/25

.................

12,750

12,183,008

6.38%,

06/15/26

.................

20,872

19,484,256

Civitas

Resources,

Inc.,

5.00%,

10/15/26

(c)

.

5,912

5,370,934

CNX

Midstream

Partners

LP,

4.75%,

04/15/30

(c)

6,886

5,404,890

CNX

Resources

Corp.

(c)

6.00%,

01/15/29

.................

8,931

8,149,538

7.38%,

01/15/31

.................

12,043

11,778,957

Colgate

Energy

Partners

III

LLC

(c)

7.75%,

02/15/26

.................

18,806

18,458,599

5.88%,

07/01/29

.................

26,730

23,860,000

Comstock

Resources,

Inc.

(c)

6.75%,

03/01/29

.................

39,411

36,349,067

5.88%,

01/15/30

.................

43,287

37,701,029

CQP

Holdco

LP,

5.50%,

06/15/31

(c)

......

49,409

41,825,954

Crescent

Energy

Finance

LLC,

7.25%,

05/01/26

(c)

....................

38,682

34,752,682

Crestwood

Midstream

Partners

LP

(c)

5.63%,

05/01/27

.................

3,801

3,439,905

6.00%,

02/01/29

.................

4,529

4,053,455

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

62

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

8.00%,

04/01/29

.................

USD

5,777

$

5,560,363

CrownRock

LP

(c)

5.63%,

10/15/25

.................

47,542

45,515,285

5.00%,

05/01/29

.................

5,169

4,560,652

Cullinan

Holdco

Scsp,

4.63%,

10/15/26

(b)

..

EUR

811

666,139

DCP

Midstream

Operating

LP

5.63%,

07/15/27

.................

USD

3,146

3,038,615

5.13%,

05/15/29

.................

9,854

9,233,479

6.45%,

11/03/36

(c)

................

8,938

8,165,824

6.75%,

09/15/37

(c)

................

7,679

7,445,847

Diamondback

Energy,

Inc.,

4.25%,

03/15/52

9,887

7,217,838

DT

Midstream,

Inc.

(c)

4.13%,

06/15/29

.................

21,036

17,775,420

4.38%,

06/15/31

.................

21,629

17,837,869

Earthstone

Energy

Holdings

LLC,

8.00%,

04/15/27

(c)

....................

22,870

21,554,975

Energy

Transfer

LP,

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.69%),

6.50%

(a)(j)

...........

46,712

40,691,008

EnLink

Midstream

LLC

5.63%,

01/15/28

(c)

................

22,499

21,036,565

5.38%,

06/01/29

.................

14,861

13,597,815

6.50%,

09/01/30

(c)

................

14,947

14,595,746

EnLink

Midstream

Partners

LP

4.15%,

06/01/25

.................

150

139,237

4.85%,

07/15/26

.................

2,658

2,441,066

5.60%,

04/01/44

.................

10,729

8,161,518

5.05%,

04/01/45

.................

3,358

2,353,503

5.45%,

06/01/47

.................

3,656

2,670,596

EQM

Midstream

Partners

LP

6.00%,

07/01/25

(c)

................

5,557

5,138,172

4.13%,

12/01/26

.................

1,043

883,598

6.50%,

07/01/27

(c)

................

11,727

10,836,785

4.50%,

01/15/29

(c)

................

1,431

1,152,925

7.50%,

06/01/30

(c)

................

4,802

4,537,749

4.75%,

01/15/31

(c)

................

14,782

11,733,213

Genesis

Energy

LP

6.50%,

10/01/25

.................

3,152

2,849,719

8.00%,

01/15/27

.................

922

809,055

7.75%,

02/01/28

.................

1,513

1,316,310

Gulfport

Energy

Corp.,

8.00%,

05/17/26

(c)

..

2,222

2,210,393

Harbour

Energy

plc,

5.50%,

10/15/26

(c)

....

5,192

4,646,840

Harvest

Midstream

I

LP,

7.50%,

09/01/28

(c)

.

1,866

1,744,072

Hess

Midstream

Operations

LP,

4.25%,

02/15/30

(c)

....................

13,308

10,746,210

Hilcorp

Energy

I

LP

(c)

6.25%,

11/01/28

.................

7,517

6,935,785

5.75%,

02/01/29

.................

6,150

5,376,731

6.00%,

04/15/30

.................

911

793,952

6.00%,

02/01/31

.................

2,002

1,734,505

6.25%,

04/15/32

.................

7,111

6,298,995

ITT

Holdings

LLC,

6.50%,

08/01/29

(c)

.....

21,728

16,855,926

Kinetik

Holdings

LP,

5.88%,

06/15/30

(c)

....

32,108

29,399,979

Magnolia

Oil

&

Gas

Operating

LLC,

6.00%,

08/01/26

(c)

....................

1,879

1,800,777

Matador

Resources

Co.,

5.88%,

09/15/26

..

10,183

9,823,235

MPLX

LP,

4.95%,

03/14/52

...........

26,110

20,432,946

Murphy

Oil

Corp.

5.75%,

08/15/25

.................

675

650,915

5.88%,

12/01/27

.................

4,769

4,457,775

6.13%,

12/01/42

(l)

................

1,714

1,363,281

Neptune

Energy

Bondco

plc,

6.63%,

05/15/25

(c)

4,626

4,294,616

New

Fortress

Energy,

Inc.

(c)

6.75%,

09/15/25

.................

48,469

45,909,837

6.50%,

09/30/26

.................

75,573

69,821,895

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

NGL

Energy

Operating

LLC,

7.50%,

02/01/26

(c)

USD

10,699

$

9,517,937

NGPL

PipeCo

LLC,

7.77%,

12/15/37

(c)

....

9,239

9,337,718

Northern

Oil

&

Gas,

Inc.,

8.13%,

03/01/28

(c)

.

71,247

66,794,063

NuStar

Logistics

LP

5.75%,

10/01/25

.................

5,919

5,485,552

6.00%,

06/01/26

.................

5,812

5,320,217

6.38%,

10/01/30

.................

1,866

1,596,673

Occidental

Petroleum

Corp.

6.95%,

07/01/24

.................

1,800

1,849,500

8.00%,

07/15/25

.................

2,122

2,249,320

5.88%,

09/01/25

.................

6,869

6,889,779

7.20%,

03/15/29

.................

5,695

5,865,850

8.88%,

07/15/30

.................

7,849

8,738,291

6.63%,

09/01/30

.................

44,038

44,698,570

7.50%,

05/01/31

.................

4,628

4,836,260

6.45%,

09/15/36

.................

25,413

25,413,000

6.20%,

03/15/40

.................

29,184

28,235,520

6.60%,

03/15/46

.................

10,630

10,948,900

Parkland

Corp.,

5.88%,

07/15/27

(c)

......

6,300

5,840,100

PDC

Energy,

Inc.,

6.13%,

09/15/24

......

2,601

2,559,846

Permian

Resources

Operating

LLC

(c)

5.38%,

01/15/26

.................

4,672

4,263,200

6.88%,

04/01/27

.................

6,153

5,952,751

Range

Resources

Corp.,

4.88%,

05/15/25

..

1,830

1,724,921

Repsol

International

Finance

BV

(a)(b)(j)

(EUR

Swap

Annual

5

Year

+

4.00%),

3.75%

EUR

650

563,774

(EUR

Swap

Annual

5

Year

+

4.41%),

4.25%

2,710

2,181,187

Rockcliff

Energy

II

LLC,

5.50%,

10/15/29

(c)

.

USD

24,138

21,134,656

Rockies

Express

Pipeline

LLC,

4.95%,

07/15/29

(c)

....................

3,239

2,778,398

SM

Energy

Co.

5.63%,

06/01/25

.................

4,857

4,662,720

6.75%,

09/15/26

.................

8,748

8,419,950

6.63%,

01/15/27

.................

3,325

3,191,601

6.50%,

07/15/28

.................

4,590

4,361,986

Southwestern

Energy

Co.

5.38%,

02/01/29

.................

21,694

19,672,119

4.75%,

02/01/32

.................

1,539

1,289,836

Sunoco

LP,

6.00%,

04/15/27

..........

637

607,411

Tallgrass

Energy

Partners

LP

(c)

6.00%,

03/01/27

.................

2,844

2,580,247

6.00%,

12/31/30

.................

1,980

1,683,218

6.00%,

09/01/31

.................

6,973

5,892,185

Tap

Rock

Resources

LLC,

7.00%,

10/01/26

(c)

55,898

51,100,554

TerraForm

Power

Operating

LLC

(c)

5.00%,

01/31/28

.................

63

55,505

4.75%,

01/15/30

.................

6,660

5,652,875

Venture

Global

Calcasieu

Pass

LLC

(c)

3.88%,

08/15/29

.................

46,498

39,889,704

4.13%,

08/15/31

.................

48,092

39,890,871

3.88%,

11/01/33

.................

94,856

73,750,540

Vermilion

Energy,

Inc.,

6.88%,

05/01/30

(c)

..

8,400

7,728,000

Western

Midstream

Operating

LP

4.75%,

08/15/28

.................

1,800

1,638,000

5.45%,

04/01/44

.................

18,187

14,919,562

5.30%,

03/01/48

.................

8,789

7,228,952

5.50%,

08/15/48

.................

6,422

5,193,793

5.50%,

02/01/50

(l)

................

48,323

39,020,822

1,807,301,083

Paper

&

Forest

Products

—

0.0%

Fabric

BC

SpA,

(EURIBOR

3

Month

+

4.13%),

4.71%,

08/31/26

(a)(b)

..............

EUR

900

870,755

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

63

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Personal

Products

—

0.1%

Coty,

Inc.

3.88%,

04/15/26

(b)

................

EUR

2,009

$

1,772,029

4.75%,

04/15/26

(b)

................

1,600

1,352,155

4.75%,

01/15/29

(c)

................

USD

1,042

881,522

Prestige

Brands,

Inc.,

3.75%,

04/01/31

(c)

...

7,708

5,988,345

9,994,051

Pharmaceuticals

—

0.6%

Bayer

AG,

(EUR

Swap

Annual

5

Year

+

3.75%),

4.50%,

03/25/82

(a)(b)

..............

EUR

700

590,765

Catalent

Pharma

Solutions,

Inc.

(c)

5.00%,

07/15/27

.................

USD

5,833

5,202,921

3.13%,

02/15/29

.................

9,563

7,375,464

3.50%,

04/01/30

.................

15,897

12,506,488

Cheplapharm

Arzneimittel

GmbH

4.38%,

01/15/28

(b)

................

EUR

805

646,723

5.50%,

01/15/28

(c)

................

USD

14,714

12,139,050

Elanco

Animal

Health,

Inc.,

6.40%,

08/28/28

(l)

6,159

5,437,104

Gruenenthal

GmbH

(b)

3.63%,

11/15/26

.................

EUR

1,502

1,258,590

4.13%,

05/15/28

.................

1,289

1,046,202

Jazz

Securities

DAC,

4.38%,

01/15/29

(c)

...

USD

7,418

6,407,297

Nidda

Healthcare

Holding

GmbH

3.50%,

09/30/24

(b)

................

EUR

3,831

3,386,635

Organon

&

Co.

(c)

4.13%,

04/30/28

.................

USD

19,465

16,642,575

5.13%,

04/30/31

.................

23,493

19,244,526

Rossini

SARL,

6.75%,

10/30/25

(b)

.......

EUR

300

284,457

Teva

Pharmaceutical

Finance

Netherlands

II

BV

1.25%,

03/31/23

(b)

................

643

619,656

6.00%,

01/31/25

.................

3,400

3,252,614

4.50%,

03/01/25

.................

1,794

1,655,245

3.75%,

05/09/27

.................

551

454,045

1.63%,

10/15/28

(b)

................

500

345,253

4.38%,

05/09/30

.................

359

276,699

Teva

Pharmaceutical

Finance

Netherlands

III

BV

7.13%,

01/31/25

.................

USD

1,245

1,209,829

3.15%,

10/01/26

.................

6,826

5,562,336

4.75%,

05/09/27

.................

5,800

4,900,623

110,445,097

Professional

Services

—

0.4%

AMN

Healthcare,

Inc.,

4.00%,

04/15/29

(c)

..

6,115

5,152,560

CoreLogic,

Inc.,

4.50%,

05/01/28

(c)

......

27,421

18,646,280

Dun

&

Bradstreet

Corp.

(The),

5.00%,

12/15/29

(c)

....................

24,255

20,010,375

KBR,

Inc.,

4.75%,

09/30/28

(c)

..........

16,751

14,390,381

La

Financiere

Atalian

SASU

(b)

5.13%,

05/15/25

.................

EUR

3,495

3,249,729

6.63%,

05/15/25

.................

GBP

1,000

1,062,956

Science

Applications

International

Corp.,

4.88%,

04/01/28

(c)

...............

USD

8,878

7,898,356

70,410,637

Real

Estate

Management

&

Development

—

0.4%

ADLER

Group

SA

(b)

3.25%,

08/05/25

.................

EUR

2,400

1,293,666

2.75%,

11/13/26

.................

2,100

1,029,053

Aroundtown

SA,

(GBP

Swap

5

Year

+

4.38%),

4.75%

(a)(b)(j)

...................

GBP

2,736

2,046,770

ATF

Netherlands

BV,

(EUR

Swap

Annual

5

Year

+

4.38%),

3.75%

(a)(b)(j)

..........

EUR

400

344,473

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

(c)

...............

USD

18,529

17,186,574

Security

Par

(000)

Par

(000)

Value

Real

Estate

Management

&

Development

(continued)

DEMIRE

Deutsche

Mittelstand

Real

Estate

AG,

1.88%,

10/15/24

(b)

...............

EUR

1,800

$

1,276,672

DIC

Asset

AG,

2.25%,

09/22/26

(b)

.......

1,100

767,920

Fastighets

AB

Balder,

(EUR

Swap

Annual

5

Year

+

3.19%),

2.87%,

06/02/81

(a)(b)

....

2,725

1,779,311

Heimstaden

Bostad

AB,

(EUR

Swap

Annual

5

Year

+

3.15%),

2.63%

(a)(b)(j)

..........

3,725

2,119,588

Howard

Hughes

Corp.

(The)

(c)

5.38%,

08/01/28

.................

USD

719

596,770

4.13%,

02/01/29

.................

6,258

4,834,305

4.38%,

02/01/31

.................

9,001

6,465,463

Realogy

Group

LLC

(c)

5.75%,

01/15/29

.................

15,554

11,218,323

5.25%,

04/15/30

.................

10,049

6,824,175

SBB

Treasury

OYJ

(b)

0.75%,

12/14/28

.................

EUR

100

60,763

1.13%,

11/26/29

.................

600

360,933

Unique

Pub

Finance

Co.

plc

(The),

Series

N,

6.46%,

03/30/32

(b)(l)

..............

GBP

2,516

3,156,926

WeWork

Cos.

LLC,

5.00%,

07/10/25

(c)

....

USD

12,875

7,469,624

68,831,309

Road

&

Rail

—

1.2%

Albion

Financing

1

SARL,

6.13%,

10/15/26

(c)

11,529

9,746,961

Avis

Budget

Car

Rental

LLC,

5.38%,

03/01/29

(c)

2,638

2,166,180

BCP

V

Modular

Services

Finance

II

plc

(b)

4.75%,

11/30/28

.................

EUR

2,400

1,881,696

6.13%,

11/30/28

.................

GBP

1,900

1,644,362

EC

Finance

plc,

3.00%,

10/15/26

(b)

......

EUR

1,774

1,508,243

Hertz

Corp.

(The)

(c)

4.63%,

12/01/26

.................

USD

5,759

4,678,389

5.00%,

12/01/29

.................

6,757

5,025,519

Loxam

SAS

(b)

4.25%,

04/15/24

.................

EUR

300

282,719

3.25%,

01/14/25

.................

1,531

1,350,411

3.75%,

07/15/26

.................

1,102

911,431

4.50%,

02/15/27

.................

1,305

1,080,703

5.75%,

07/15/27

.................

989

746,337

National

Express

Group

plc,

(U.K.

Government

Bonds

5

Year

Note

Generic

Bid

Yield

+

4.14%),

4.25%

(a)(b)(j)

..............

GBP

300

261,943

NESCO

Holdings

II,

Inc.,

5.50%,

04/15/29

(c)

.

USD

11,396

9,498,452

Uber

Technologies,

Inc.

7.50%,

05/15/25

(c)

................

14,289

14,253,278

0.00%,

12/15/25

(h)(m)

..............

25,622

21,263,891

8.00%,

11/01/26

(c)

................

13,528

13,506,626

7.50%,

09/15/27

(c)

................

49,020

48,039,600

6.25%,

01/15/28

(c)

................

18,610

17,307,300

4.50%,

08/15/29

(c)

................

64,716

54,401,887

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

(c)

....................

7,264

6,355,600

215,911,528

Semiconductors

&

Semiconductor

Equipment

—

0.7%

ams

-OSRAM

AG

(b)(h)

0.00%,

03/05/25

(m)

...............

EUR

800

621,971

2.13%,

11/03/27

.................

1,000

644,011

Broadcom,

Inc.,

3.47%,

04/15/34

(c)

......

USD

20,000

15,005,079

Entegris

Escrow

Corp.,

4.75%,

04/15/29

(c)

..

100,538

88,556,343

Entegris

,

Inc.

(c)

4.38%,

04/15/28

.................

4,616

3,913,537

3.63%,

05/01/29

.................

7,261

5,746,050

Synaptics,

Inc.,

4.00%,

06/15/29

(c)

.......

11,157

8,981,994

123,468,985

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

64

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Software

—

3.8%

ACI

Worldwide,

Inc.,

5.75%,

08/15/26

(c)

...

USD

8,476

$

8,007,277

AthenaHealth

Group,

Inc.,

6.50%,

02/15/30

(c)

83,842

66,282,970

Boxer

Parent

Co.,

Inc.

6.50%,

10/02/25

(b)

................

EUR

3,621

3,318,092

7.13%,

10/02/25

(c)

................

USD

18,349

17,983,396

9.13%,

03/01/26

(c)

................

35,633

34,243,313

Camelot

Finance

SA,

4.50%,

11/01/26

(c)

...

12,194

11,033,253

Cedacri

Mergeco

SpA,

(EURIBOR

3

Month

+

4.63%),

4.95%,

05/15/28

(a)(b)

.........

EUR

1,069

971,717

Central

Parent,

Inc.,

7.25%,

06/15/29

(c)

....

USD

40,383

38,391,916

Change

Healthcare

Holdings

LLC,

5.75%,

03/01/25

(c)

....................

78,743

78,266,211

Clarivate

Science

Holdings

Corp.

(c)

3.88%,

07/01/28

.................

54,362

44,837,778

4.88%,

07/01/29

.................

39,491

30,921,453

Condor

Merger

Sub,

Inc.,

7.38%,

02/15/30

(c)

55,319

45,226,878

Consensus

Cloud

Solutions,

Inc.

(c)

6.00%,

10/15/26

.................

4,772

4,205,063

6.50%,

10/15/28

.................

4,321

3,667,975

Elastic

NV,

4.13%,

07/15/29

(c)

.........

23,109

18,252,413

Fair

Isaac

Corp.,

4.00%,

06/15/28

(c)

......

11,253

9,588,456

Helios

Software

Holdings,

Inc.,

4.63%,

05/01/28

(c)

....................

8,848

6,609,456

MicroStrategy,

Inc.,

6.13%,

06/15/28

(c)

....

22,603

18,623,741

NCR

Corp.

(c)

5.00%,

10/01/28

.................

5,065

3,985,032

5.13%,

04/15/29

.................

523

392,261

6.13%,

09/01/29

.................

4,012

3,454,395

NortonLifeLock,

Inc.,

7.13%,

09/30/30

(c)

...

13,445

13,004,139

Open

Text

Corp.

(c)

3.88%,

02/15/28

.................

717

592,973

3.88%,

12/01/29

.................

12,887

9,925,954

Open

Text

Holdings,

Inc.,

4.13%,

02/15/30

(c)

5,928

4,734,160

Picard

Midco,

Inc.,

6.50%,

03/31/29

(c)

.....

117,044

98,867,067

PTC,

Inc.

(c)

3.63%,

02/15/25

.................

734

683,742

4.00%,

02/15/28

.................

6,752

5,905,198

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(c)

56,829

51,839,075

Veritas

US,

Inc.,

7.50%,

09/01/25

(c)

......

10,443

7,997,719

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(c)

40,003

32,640,048

674,453,121

Specialty

Retail

—

1.9%

Arko

Corp.,

5.13%,

11/15/29

(c)

.........

11,050

8,619,000

Asbury

Automotive

Group,

Inc.

4.50%,

03/01/28

.................

1,110

937,950

4.75%,

03/01/30

.................

412

321,765

5.00%,

02/15/32

(c)

................

8,384

6,456,186

Carvana

Co.

(c)

5.50%,

04/15/27

.................

15,693

8,552,685

4.88%,

09/01/29

.................

8,186

3,990,675

10.25%,

05/01/30

................

9,869

6,587,557

Constellation

Automotive

Financing

plc,

4.88%,

07/15/27

(b)

....................

GBP

2,096

1,585,546

Douglas

GmbH,

6.00%,

04/08/26

(b)

......

EUR

600

446,950

Dufry

One

BV,

2.50%,

10/15/24

(b)

.......

1,200

1,079,035

eG

Global

Finance

plc

4.38%,

02/07/25

(b)

................

817

688,603

6.75%,

02/07/25

(c)

................

USD

22,259

20,078,063

6.25%,

10/30/25

(b)

................

EUR

4,509

3,820,883

8.50%,

10/30/25

(c)

................

USD

16,076

14,059,811

Goldstory

SASU,

5.38%,

03/01/26

(b)

.....

EUR

2,940

2,449,145

Group

1

Automotive,

Inc.,

4.00%,

08/15/28

(c)

USD

1,146

922,771

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

(c)

..

12,795

9,732,498

Ken

Garff

Automotive

LLC,

4.88%,

09/15/28

(c)

7,880

6,440,223

LBM

Acquisition

LLC,

6.25%,

01/15/29

(c)

...

7,114

4,819,735

Security

Par

(000)

Par

(000)

Value

Specialty

Retail

(continued)

LCM

Investments

Holdings

II

LLC,

4.88%,

05/01/29

(c)

....................

USD

10,999

$

8,517,253

Lithia

Motors,

Inc.,

3.88%,

06/01/29

(c)

.....

5,995

4,810,987

Murphy

Oil

USA,

Inc.,

4.75%,

09/15/29

....

4,526

4,005,510

Penske

Automotive

Group,

Inc.

3.50%,

09/01/25

.................

8,848

8,099,518

3.75%,

06/15/29

.................

3,793

3,014,689

PetSmart,

Inc.

(c)

4.75%,

02/15/28

.................

5,438

4,653,782

7.75%,

02/15/29

.................

40,619

36,310,949

Sonic

Automotive,

Inc.,

4.63%,

11/15/29

(c)

..

2,511

1,971,135

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

(c)

...............

4,541

3,757,501

SRS

Distribution,

Inc.

(c)

4.63%,

07/01/28

.................

39,067

33,558,162

6.13%,

07/01/29

.................

33,274

26,722,406

6.00%,

12/01/29

.................

40,299

32,139,259

Staples,

Inc.,

7.50%,

04/15/26

(c)

........

17,214

14,453,047

Tendam

Brands

SAU

(b)

5.00%,

09/15/24

.................

EUR

346

314,513

(EURIBOR

3

Month

+

5.25%),

5.52%,

09/15/24

(a)

...................

364

336,582

White

Cap

Buyer

LLC,

6.88%,

10/15/28

(c)

..

USD

41,265

33,670,589

White

Cap

Parent

LLC,

8.25%,

(8.25%

Cash

or

9.00%

PIK),

03/15/26

(c)(i)

...........

17,016

14,415,972

332,340,935

Technology

Hardware,

Storage

&

Peripherals

—

0.0%

Xerox

Corp.,

4.80%,

03/01/35

.........

96

62,558

Textiles,

Apparel

&

Luxury

Goods

—

0.2%

Crocs,

Inc.

(c)

4.25%,

03/15/29

.................

4,528

3,599,760

4.13%,

08/15/31

.................

10,593

8,063,180

European

TopSoho

SARL,

Series

SMCP,

4.00%,

09/21/21

(b)(e)(h)(k)

............

EUR

2,700

1,863,212

Kontoor

Brands,

Inc.,

4.13%,

11/15/29

(c)

...

USD

6,372

5,076,760

Levi

Strauss

&

Co.,

3.50%,

03/01/31

(c)

....

11,182

8,721,960

William

Carter

Co.

(The),

5.63%,

03/15/27

(c)

.

2,686

2,511,249

29,836,121

Thrifts

&

Mortgage

Finance

—

0.4%

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(c)

...

22,501

21,503,981

Home

Point

Capital,

Inc.,

5.00%,

02/01/26

(c)

.

12,247

7,669,684

Jerrold

Finco

plc,

4.88%,

01/15/26

(b)

.....

GBP

761

658,513

Ladder

Capital

Finance

Holdings

LLLP

(c)

4.25%,

02/01/27

.................

USD

3,906

3,145,141

4.75%,

06/15/29

.................

2,924

2,189,053

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

8,434

7,534,767

Nationstar

Mortgage

Holdings,

Inc.

(c)

6.00%,

01/15/27

.................

3,788

3,234,005

5.13%,

12/15/30

.................

3,825

2,773,890

5.75%,

11/15/31

.................

3,079

2,258,060

Nationwide

Building

Society,

(U.K.

Government

Bonds

5

Year

Note

Generic

Bid

Yield

+

5.63%),

5.75%

(a)(b)(j)

..............

GBP

400

356,626

Rocket

Mortgage

LLC,

2.88%,

10/15/26

(c)

..

USD

20,223

16,582,860

67,906,580

Trading

Companies

&

Distributors

—

0.6%

Beacon

Roofing

Supply,

Inc.,

4.13%,

05/15/29

(c)

8,144

6,595,907

Fortress

Transportation

&

Infrastructure

Investors

LLC

(c)

6.50%,

10/01/25

.................

4,792

4,501,665

9.75%,

08/01/27

.................

4,021

3,931,773

5.50%,

05/01/28

.................

11,814

9,449,546

Foundation

Building

Materials,

Inc.,

6.00%,

03/01/29

(c)

....................

5,510

4,021,321

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

65

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Trading

Companies

&

Distributors

(continued)

H&E

Equipment

Services,

Inc.,

3.88%,

12/15/28

(c)

....................

USD

1,225

$

961,625

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(c)

....

4,513

4,061,700

Imola

Merger

Corp.,

4.75%,

05/15/29

(c)

....

25,481

21,497,046

United

Rentals

North

America,

Inc.,

5.25%,

01/15/30

.....................

1,941

1,756,663

WESCO

Distribution,

Inc.

(c)

7.13%,

06/15/25

.................

31,356

31,373,246

7.25%,

06/15/28

.................

22,511

22,048,430

110,198,922

Transportation

Infrastructure

—

0.1%

(b)

Abertis

Infraestructuras

Finance

BV,

(EUR

Swap

Annual

5

Year

+

3.69%),

3.25%

(a)(j)

.

EUR

1,800

1,426,253

Autostrade

per

l'Italia

SpA

1.88%,

11/04/25

.................

700

617,432

1.75%,

02/01/27

.................

1,700

1,392,447

1.63%,

01/25/28

.................

725

558,592

2.00%,

12/04/28

.................

3,754

2,832,104

2.00%,

01/15/30

.................

3,748

2,741,513

9,568,341

Water

Utilities

—

0.0%

Thames

Water

Kemble

Finance

plc,

4.63%,

05/19/26

(b)

....................

GBP

779

721,903

Wireless

Telecommunication

Services

—

0.7%

Connect

Finco

SARL,

6.75%,

10/01/26

(c)

...

USD

82,572

72,213,523

Ligado

Networks

LLC,

15.50%,

(15.50%

Cash

or

15.50%

PIK),

11/01/23

(a)(c)(i)

........

13,285

5,169,657

Matterhorn

Telecom

SA,

4.00%,

11/15/27

(b)

.

EUR

1,718

1,471,156

SoftBank

Group

Corp.

(b)

2.13%,

07/06/24

.................

2,741

2,464,696

4.50%,

04/20/25

.................

1,300

1,164,643

4.75%,

07/30/25

.................

1,409

1,251,070

3.13%,

09/19/25

.................

2,500

2,098,351

2.88%,

01/06/27

.................

994

743,173

Sprint

Corp.,

7.63%,

03/01/26

.........

USD

16,450

17,014,759

Vmed

O2

UK

Financing

I

plc

4.00%,

01/31/29

(b)

................

GBP

1,463

1,229,218

4.25%,

01/31/31

(c)

................

USD

1,235

935,747

4.50%,

07/15/31

(b)

................

GBP

2,742

2,166,068

4.75%,

07/15/31

(c)

................

USD

21,254

16,397,377

Vodafone

Group

plc

(a)(b)

(EUR

Swap

Annual

5

Year

+

3.43%),

4.20%,

10/03/78

...............

EUR

1,200

1,017,586

(GBP

Swap

5

Year

+

3.27%),

4.88%,

10/03/78

....................

GBP

1,529

1,459,660

(EUR

Swap

Annual

5

Year

+

3.00%),

2.63%,

08/27/80

...............

EUR

1,400

1,173,120

Series

NC10,

(EUR

Swap

Annual

5

Year

+

3.23%),

3.00%,

08/27/80

.........

1,300

939,941

128,909,745

Total

Corporate

Bonds

—

80.8%

(Cost:

$16,581,646,433)

...........................

14,303,463,171

Floating

Rate

Loan

Interests

Aerospace

&

Defense

—

0.5%

(a)

Cobham

Ultra

SeniorCo

SARL,

Facility

Term

Loan

B,

(LIBOR

USD

6

Month

+

3.75%),

7.06%

,

 08/03/29

.................

USD

3,127

2,986,285

Peraton

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 02/01/28

46,429

43,921,952

Peraton

Corp.,

2nd

Lien

Term

Loan

B1,

(LIBOR

USD

1

Month

+

7.75%),

10.57%

,

 02/01/29

34,253

32,304,954

Security

Par

(000)

Par

(000)

Value

Aerospace

&

Defense

(continued)

Spirit

Aerosystems

,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 01/15/25

USD

13,921

$

13,751,101

92,964,292

Airlines

—

0.7%

(a)

AAdvantage

Loyalty

IP

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

7.46%

,

 04/20/28

39,699

38,389,157

Air

Canada,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.42%

,

 08/11/28

..........

16,732

15,880,416

Mileage

Plus

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

8.78%

,

 06/21/27

11,483

11,509,802

SkyMiles

IP

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

6.46%

,

 10/20/27

.....

14,772

14,783,522

United

AirLines

,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

6.53%

,

 04/21/28

36,877

35,130,192

115,693,089

Auto

Components

—

0.0%

Clarios

Global

LP,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 04/30/26

(a)

1,969

1,858,335

Beverages

—

0.0%

Naked

Juice

LLC,

2nd

Lien

Term

Loan,

(SOFR

3

Month

+

6.00%),

9.65%

,

 01/24/30

(a)

...

1,936

1,752,080

Capital

Markets

—

0.1%

(a)

Mercury

Borrower,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.50%),

10.25%

,

 08/02/29

................

12,959

11,598,333

Sequa

Mezzanine

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.75%),

9.76%

,

 11/28/23

.................

5,188

5,175,493

16,773,826

Chemicals

—

0.4%

(a)

ARC

Falcon

I,

Inc.,

Delayed

Draw

Term

Loan,

09/30/28

(n)

.....................

1,607

1,479,431

ARC

Falcon

I,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 09/30/28

.....

10,928

10,058,098

Ascend

Performance

Materials

Operations

LLC,

Term

Loan,

(SOFR

6

Month

+

4.75%),

8.83%

,

 08/27/26

.................

19,793

19,342,923

Discovery

Purchaser

Corp.,

Term

Loan,

08/04/29

(n)

.....................

32,484

29,641,650

WR

Grace

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.44%

,

 09/22/28

12,551

11,719,755

72,241,857

Commercial

Services

&

Supplies

—

0.2%

(a)

PECF

USS

Intermediate

Holding

III

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

4.25%),

7.37%

,

 12/15/28

.................

36,621

31,158,108

TruGreen

Ltd.

Partnership,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

8.50%),

11.62%

,

 11/02/28

(d)

...............

12,384

10,897,920

42,056,028

Communications

Equipment

—

0.1%

Viasat

,

Inc.,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.65%

,

 03/02/29

(a)

..........

12,128

10,718,376

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

66

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Construction

&

Engineering

—

0.6%

(a)

Brand

Energy

&

Infrastructure

Services,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

6.60%

-

7.92%

,

 06/21/24

...........

USD

122,091

$

105,960,365

Propulsion

(BC)

Finco

,

Term

Loan,

(SOFR

3

Month

+

4.00%),

7.18%

,

 09/14/29

(d)

....

7,476

7,083,861

113,044,226

Containers

&

Packaging

—

0.1%

(a)

Clydesdale

Acquisition

Holdings,

Inc.,

1st

Lien

Term

Loan

B,

(SOFR

1

Month

+

4.18%),

7.31%

,

 04/13/29

.................

3,818

3,596,236

Mauser

Packaging

Solutions

Holding

Co.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.38%

,

 04/03/24

.................

15,829

14,710,921

18,307,157

Diversified

Consumer

Services

—

0.2%

(a)

Ascend

Learning

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

8.87%

,

 12/10/29

.................

8,164

7,067,003

Sotheby's,

Term

Loan,

(LIBOR

USD

3

Month

+

4.50%),

7.01%

,

 01/15/27

...........

3,705

3,574,873

Veritas

US,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

5.00%),

8.67%

,

 09/01/25

.....

25,489

20,125,649

30,767,525

Diversified

Financial

Services

—

0.2%

(a)

Deerfield

Dakota

Holding

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.75%),

9.87%

,

 04/07/28

(d)

................

16,090

15,526,850

White

Cap

Supply

Holdings

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.78%

,

 10/19/27

.................

13,979

13,052,554

28,579,404

Diversified

Telecommunication

Services

—

0.3%

(a)

Frontier

Communications

Holdings

LLC,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

7.44%

,

 05/01/28

.................

9,546

8,853,766

Zayo

Group

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 03/09/27

43,769

36,443,258

45,297,024

Energy

Equipment

&

Services

—

0.0%

Lealand

Finance

Co.

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 06/28/24

(a)(d)

758

454,660

Food

Products

—

0.0%

Chobani

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 10/25/27

(a)

....

2,807

2,549,226

Health

Care

Equipment

&

Supplies

—

0.1%

Chariot

Buyer

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 11/03/28

(a)

18,695

16,942,473

Health

Care

Providers

&

Services

—

0.1%

(a)

Envision

Healthcare

Corp.,

Term

Loan

(SOFR

3

Month

+

4.25%),

6.83%, 03/31/27

20,313

8,836,041

(SOFR

3

Month

+

7.88%),

10.53%, 03/31/27

3,030

2,901,124

Quorum

Health

Corp.,

Term

Loan,

(LIBOR

USD

3

Month

+

8.25%),

10.60%

,

 04/29/25

...

13,919

9,325,530

21,062,695

Security

Par

(000)

Par

(000)

Value

Health

Care

Technology

—

0.6%

(a)

Polaris

Newco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 06/02/28

.................

USD

9,981

$

9,187,802

Verscend

Holding

Corp.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

7.00%),

10.12%

,

 04/02/29

(d)

...............

51,434

49,890,913

Verscend

Holding

Corp.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 08/27/25

54,456

52,686,130

111,764,845

Hotels,

Restaurants

&

Leisure

—

0.1%

(a)

Fertitta

Entertainment

LLC,

Term

Loan

B,

(SOFR

1

Month

+

4.00%),

7.03%

,

 01/27/29

19,613

18,162,422

IRB

Holding

Corp.,

Term

Loan

B,

(SOFR

1

Month

+

3.00%),

5.70%

,

 12/15/27

.....

3,187

2,979,807

Raptor

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.00%),

7.60%

,

 11/01/26

.................

2,698

2,569,845

23,712,074

Household

Durables

—

0.2%

(a)

Hunter

Douglas

Holding

BV,

Term

Loan

B1,

(SOFR

3

Month

+

3.50%),

6.34%

,

 02/26/29

13,231

10,829,573

SWF

Holdings

I

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.60%

,

 10/06/28

.................

25,262

19,653,879

30,483,452

Insurance

—

0.1%

Sedgwick

Claims

Management

Services,

Inc.,

Term

Loan

(a)

(LIBOR

USD

1

Month

+

3.25%),

6.37%, 12/31/25

...............

2,325

2,197,317

(LIBOR

USD

1

Month

+

3.75%),

6.87%, 09/03/26

...............

4,912

4,683,163

(LIBOR

USD

1

Month

+

4.25%),

7.37%, 09/03/26

...............

4,580

4,405,593

11,286,073

Interactive

Media

&

Services

—

0.1%

(a)

Acuris

Finance

US,

Inc.,

Term

Loan,

(SOFR

3

Month

+

4.00%),

7.70%

,

 02/16/28

.....

3,385

3,236,358

Grab

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

4.50%),

7.62%

,

 01/29/26

.....

9,412

8,794,717

12,031,075

Internet

&

Direct

Marketing

Retail

—

0.0%

Pug

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 02/12/27

(a)(d)

.........

5,464

4,726,657

IT

Services

—

0.2%

(a)

Epicor

Software

Corp.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

7.75%),

10.87%

,

 07/31/28

................

6,927

6,733,044

Gainwell

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 10/01/27

.................

29,940

28,464,993

35,198,037

Leisure

Products

—

0.0%

Peloton

Interactive,

Inc.,

Term

Loan,

(SOFR

6

Month

+

6.50%),

8.35%

,

 05/25/27

(a)

....

5,880

5,725,906

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

67

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Machinery

—

0.4%

(a)

Filtration

Group

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 10/21/28

....

USD

4,254

$

4,028,651

Husky

Injection

Molding

Systems

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

5.88%

,

 03/28/25

.................

49,558

44,271,854

SPX

Flow,

Inc.,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.63%

,

 04/05/29

...........

15,415

14,220,511

62,521,016

Media

—

0.6%

(a)

AVSC

Holding

Corp.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

7.25%),

10.06%

,

 09/01/25

................

7,771

6,268,645

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

6.31%

,

 08/21/26

.................

48,735

43,389,577

DirectTV

Financing

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 08/02/27

54,466

50,605,767

Intelsat

Jackson

Holdings

SA,

Term

Loan

B,

(SOFR

6

Month

+

4.25%),

7.44%

,

 02/01/29

12,551

11,750,976

Promotora

de

Informaciones

SA,

Facility

Term

Loan

B,

(EURIBOR

6

Month

+

5.25%),

5.25%

,

 12/31/26

.................

EUR

307

267,149

112,282,114

Oil,

Gas

&

Consumable

Fuels

—

1.0%

(a)

Ascent

Resources

Utica

Holdings

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

9.00%),

11.46%

,

 11/01/25

...........

USD

141,095

147,914,041

Freeport

LNG

investments

LLLP,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

6.21%

,

 12/21/28

.................

16,772

15,490,138

M6

ETX

Holdings

II

Midco

LLC,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.62%

,

 09/19/29

10,737

10,522,260

173,926,439

Professional

Services

—

0.1%

(a)

CoreLogic

,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.50%),

9.63%

,

 06/04/29

(d)

18,151

12,161,100

Element

Materials

Technology

Group

US

Holdings,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan

B,

(SOFR

3

Month

+

4.25%),

0.00%

,

 06/22/29

.................

1,207

1,130,189

Element

Materials

Technology

Group

US

Holdings,

Inc.,

Term

Loan

B,

(SOFR

3

Month

+

4.25%),

7.90%

,

 06/22/29

..........

2,615

2,448,744

Galaxy

US

Opco

,

Inc.,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

4.75%),

7.78%

,

 04/29/29

(d)

................

9,545

8,948,289

24,688,322

Road

&

Rail

—

0.0%

AIT

Worldwide

Logistics

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

7.04%

,

 04/06/28

(a)

................

7,926

7,222,513

Software

—

3.0%

(a)

Athenahealth

Group,

Inc.,

Delayed

Draw

Term

Loan,

02/15/29

(n)

.................

13,510

12,078,356

Athenahealth

Group,

Inc.,

Term

Loan,

(SOFR

1

Month

+

3.50%),

6.58%

,

 02/15/29

.....

79,513

71,084,222

Banff

Guarantor,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.50%),

8.62%

,

 02/27/26

.................

27,676

25,600,300

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Boxer

Parent

Co.,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/02/25

USD

3,666

$

3,465,926

Cloudera,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/08/28

(d)

20,113

17,599,168

Cloudera,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.00%),

9.12%

,

 10/08/29

(d)

23,214

19,499,785

Delta

Topco,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

5.84%

,

 12/01/27

9,902

8,943,260

Greeneden

US

Holdings

I

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 12/01/27

.................

5,472

5,196,813

Helios

Software

Holdings,

Inc.,

Term

Loan,

(SOFR

3

Month

+

3.75%),

7.45%

,

 03/11/28

3,276

3,089,754

Magenta

Buyer

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.75%),

7.87%

,

 07/27/28

.................

45,612

41,051,039

Magenta

Buyer

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

8.25%),

11.37%

,

 07/27/29

................

30,053

27,523,439

McAfee

Corp.,

Term

Loan

B1,

(SOFR

1

Month

+

3.75%),

6.87%

,

 03/01/29

..........

48,080

43,727,169

MH

Sub

I

LLC,

1st

Lien

Term

Loan

(LIBOR

USD

1

Month

+

3.75%),

6.87%, 09/13/24

...............

7,383

7,020,854

MH

Sub

I

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.25%),

9.28%

,

 02/23/29

4,143

3,870,266

Planview

Parent,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

7.25%),

10.92%

,

 12/18/28

(d)

...............

12,161

11,552,950

Proofpoint

,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.25%),

9.32%

,

 08/31/29

27,151

26,030,782

RealPage

,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.50%),

9.62%

,

 04/23/29

51,502

49,602,917

Sabre

GLBL,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/17/27

....

4,961

4,429,527

Sabre

GLBL,

Inc.,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/17/27

....

7,908

7,060,931

Sophia

LP,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

7.17%

,

 10/07/27

....

19,529

18,748,162

Sophia

LP,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

8.00%),

11.67%

,

 10/09/28

(d)

....

61,702

61,239,235

TIBCO

Software,

Inc.,

Term

Loan

B,

(SOFR

1

Month

+

4.50%),

8.15%

,

 03/30/29

.....

35,945

32,209,236

UKG,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

9.00%

,

 05/03/27

.....

26,958

25,340,150

525,964,241

Specialty

Retail

—

0.0%

Staples,

Inc.,

Term

Loan

B1,

(LIBOR

USD

3

Month

+

5.00%),

7.78%

,

 04/16/26

(a)

....

5,541

4,846,157

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

Crocs,

Inc.,

Term

Loan,

(SOFR

6

Month

+

3.50%),

7.20%

-

7.73%

,

 02/20/29

(a)

.....

24,767

23,249,672

Trading

Companies

&

Distributors

—

0.1%

(a)

BCPE

Empire

Holdings,

Inc.,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

4.63%),

7.76%

,

 06/11/26

.................

2,276

2,167,476

Foundation

Building

Materials,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.06%

,

 01/31/28

.................

1,915

1,720,401

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

68

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Trading

Companies

&

Distributors

(continued)

SRS

Distribution,

Inc.,

Term

Loan,

(SOFR

3

Month

+

3.50%),

6.18%

,

 06/02/28

.....

USD

9,716

$

8,909,499

12,797,376

Transportation

Infrastructure

—

0.2%

(a)

Brown

Group

Holdings

LLC,

Term

Loan

B2,

(SOFR

1

Month

+

3.75%),

6.78%

,

 07/02/29

13,343

12,903,748

KKR

Apple

Bidco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 09/22/28

.................

2,981

2,840,264

KKR

Apple

Bidco

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

8.87%

,

 09/21/29

.................

1,328

1,265,857

MHI

Holdings

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 09/21/26

.....

22,956

22,525,110

39,534,979

Wireless

Telecommunication

Services

—

0.1%

Digicel

International

Finance

Ltd.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 05/27/24

(a)

................

12,526

11,137,606

Total

Floating

Rate

Loan

Interests

—

10.5%

(Cost:

$2,007,477,057)

...........................

1,864,160,827

Foreign

Agency

Obligations

Finland

—

0.0%

Finnair

OYJ,

4.25%

,

05/19/25

(b)

.........

EUR

1,675

1,280,435

France

—

0.1%

Electricite

de

France

SA

(a)(b)(j)

(GBP

Swap

Semi

13

Year

+

4.23%),

6.00%

GBP

3,900

3,374,772

(EUR

Swap

Annual

5

Year

+

3.37%),

2.88%

EUR

1,200

895,217

(EUR

Swap

Annual

5

Year

+

3.20%),

3.00%

400

284,697

(EUR

Swap

Annual

5

Year

+

3.97%),

3.38%

7,000

4,652,154

9,206,840

Italy

—

0.0%

Banca

Monte

dei

Paschi

di

Siena

SpA

(b)

3.63%,

09/24/24

.................

400

354,832

2.63%,

04/28/25

.................

1,750

1,465,803

1.88%,

01/09/26

.................

201

158,603

Poste

Italiane

SpA

,

(EURIBOR

Swap

Rate

5

Year

+

2.68%),

2.63%

(a)(b)(j)

...........

2,975

2,068,653

4,047,891

Total

Foreign

Agency

Obligations

—

0.1%

(Cost:

$23,202,943)

..............................

14,535,166

Beneficial

Interest

(000)

Other

Interests

(o)

Capital

Markets

—

0.0%

Lehman

Brothers

Holdings

Capital

Trust

Escrow

Bonds

(e)(k)

................

USD

11,550

42,735

Lehman

Brothers

Holdings

Capital

Trust

VII

Escrow

Bonds

(a)

..................

5,500

20,350

Lehman

Brothers

Holdings,

Inc.

(d)(e)

.......

7,598

—

Lehman

Brothers

Holdings,

Inc.

(e)(k)

.......

5,675

20,997

84,082

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

(a)(d)(e)(k)

GenOn

Energy

Holdings

LLC.,

Escrow

....

1,864

—

GenOn

Energy

Holdings

LLC.,

Escrow

(g)

...

3,270

—

—

Security

Beneficial

Interest

(000)

Value

Media

—

0.0%

Adelphia

Communications

Corp.,

Escrow

(d)(e)(k)

USD

325

$

—

Total

Other

Interests

—

0.0%

(Cost:

$—)

....................................

84,082

Par

(000)

Pa

r

(

000)

Preferred

Securities

Capital

Trusts

—

0.9%

Banks

—

0.4%

(a)(j)

Banco

Bilbao

Vizcaya

Argentaria

SA,

(EUR

Swap

Annual

5

Year

+

6.46%),

6.00%

(b)

..

EUR

800

677,356

Citigroup,

Inc.,

Series

W,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.60%),

4.00%

.................

USD

12,335

10,392,237

JPMorgan

Chase

&

Co.

Series

FF,

(SOFR

6

Month

+

3.38%),

5.00%

10,732

9,677,581

Series

HH,

(SOFR

6

Month

+

3.13%),

4.60%

......................

5,845

5,091,580

PNC

Financial

Services

Group,

Inc.

(The),

Series

V,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.24%),

6.20%

........................

19,049

18,001,305

Wells

Fargo

&

Co.,

Series

BB,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.45%),

3.90%

.............

15,010

12,692,831

56,532,890

Capital

Markets

—

0.3%

(a)(j)

Charles

Schwab

Corp.

(The),

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%),

4.00%

.....

63,428

46,593,138

Goldman

Sachs

Group,

Inc.

(The),

Series

R,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%),

4.95%

9,899

8,958,595

55,551,733

Consumer

Finance

—

0.0%

General

Motors

Financial

Co.,

Inc.,

Series

C,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.00%),

5.70%

(a)

(j)

............................

10,625

9,106,882

Electric

Utilities

—

0.1%

Edison

International,

Series

A,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.70%),

5.38%

(a)(j)

............

34,000

27,965,000

Independent

Power

and

Renewable

Electricity

Producers

—

0.1%

Vistra

Corp.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.74%),

7.00%

(a)(c)(j)

.....................

15,109

13,190,308

Total

Capital

Trusts

—

0.9%

(Cost:

$197,107,440)

.............................

162,346,813

Shares

Shares

Preferred

Stocks

—

0.2%

Capital

Markets

—

0.1%

Verscend

Intermediate

Holding

Corp.,

12.25%

(d)

(j)

............................

9,756

11,263,408

Insurance

—

0.1%

Alliant

Holdings

I,

Inc.,

9.75%

(d)

.........

20,162

17,886,735

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

69

(Percentages

shown

are

based

on

Net

Assets)

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Security

Shares

Shares

Value

Thrifts

&

Mortgage

Finance

—

0.0%

CF-B

L2

(D)

LLC,

(Acquired

04/08/15-12/15/15

cost

$3,626,127)

(e)(f)

...............

3,704,388

$

62,012

Wireless

Telecommunication

Services

—

0.0%

Ligado

Networks

LLC

(p)

...............

235,644

5,891,091

Total

Preferred

Stocks

—

0.2%

(Cost:

$68,614,819)

..............................

35,103,246

Total

Preferred

Securities

—

1.1%

(Cost:

$265,722,259)

.............................

197,450,059

Total

Long-Term

Investments

—

93.4%

(Cost:

$19,118,792,903)

...........................

16,537,262,045

Short-Term

Securities

Money

Market

Funds

—

5.3%

(q)(r)

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

...................

921,378,283

921,378,283

SL

Liquidity

Series,

LLC,

Money

Market

Series,

3.29%

(s)

.......................

9,777,201

9,777,201

Total

Short-Term

Securities

—

5.3%

(Cost:

$931,151,621)

.............................

931,155,484

Total

Options

Purchased

—

0.0%

(Cost:

$828,387)

................................

882,069

Total

Investments

Before

Options

Written

and

Investments

Sold

Short

—

98.7%

(Cost:

$20,050,772,911

)

...........................

17,469,299,598

Total

Options

Written

—

(0.0)%

(Premium

Received

—

$(216,642))

...................

(267,985)

Security

Shares

Shares

Value

Investments

Sold

Short

(e)

Common

Stocks

–

(0.0)%

Diversified

Telecommunication

Services

—

(0.0)%

Telesat

Corp.

(e)

....................

(388)

$

(3,030)

Total

Common

Stocks

—

(0.0)%

(Proceeds:

$(5,919))

.............................

(3,030)

Total

Investments

Sold

Short

—

(0.0)%

(Proceeds:

$(5,919))

.............................

(3,030)

Total

Investments

Net

of

Options

Written

and

Investments

Sold

Short

—

98.7%

(Cost:

$20,050,550,350

)

...........................

17,469,028,583

Other

Assets

Less

Liabilities

—

1.3%

...................

236,469,869

Net

Assets

—

100.0%

..............................

$

17,705,498,452

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(c)

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.

(d)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(e)

Non-income

producing

security.

(f)

Restricted

security

as

to

resale,

excluding

144A

securities.

The

Fund

held

restricted

securities

with

a

current

value

of

$10,400,760,

representing

0.06%

of

its

net

assets

as

of

period

end,

and

an

original

cost

of

$25,489,433.

(g)

All

or

a

portion

of

this

security

is

on

loan.

(h)

Convertible

security.

(i)

Payment-in-kind

security

which

may

pay

interest/dividends

in

additional

par/shares

and/or

in

cash.

Rates

shown

are

the

current

rate

and

possible

payment

rates.

(j)

Perpetual

security

with

no

stated

maturity

date.

(k)

Issuer

filed

for

bankruptcy

and/or

is

in

default.

(l)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(m)

Zero-coupon

bond.

(n)

Represents

an

unsettled

loan

commitment

at

period

end.

Certain

details

associated

with

this

purchase

are

not

known

prior

to

the

settlement

date,

including

coupon

rate.

(o)

Other

interests

represent

beneficial

interests

in

liquidation

trusts

and

other

reorganization

or

private

entities.

(p)

All

or

a

portion

of

the

security

is

held

by

a

wholly-owned

subsidiary.

See

Note

1

of

the

Notes

to

Financial

Statements

for

details

on

the

wholly-owned

subsidiary.

(q)

Affiliate

of

the

Fund.

(r)

Annualized

7-day

yield

as

of

period

end.

(s)

All

or

a

portion

of

this

security

was

purchased

with

the

cash

collateral

from

loaned

securities.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

70

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

842,548,387

$

78,829,896

(a)

$

—

$

—

$

—

$

921,378,283

921,378,283

$

6,356,596

$

—

SL

Liquidity

Series,

LLC,

Money

Market

Series

...........

153,770,503

—

(144,132,747)

(a)

135,875

3,570

9,777,201

9,777,201

1,790,917

(b)

—

iShares

Broad

USD

High

Yield

Corporate

Bond

ETF

(c)

.....

—

250,224,900

(245,704,557)

(4,520,343)

—

—

—

1,324,020

—

iShares

iBoxx

$

High

Yield

Corporate

Bond

ETF

(c)

.....

—

3,106,133,922

(3,071,364,941)

(34,768,981)

—

—

—

5,843,772

—

$

(39,153,449)

$

3,570

$

931,155,484

$

15,315,305

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

(b)

All

or

a

portion

represents

securities

lending

income

earned

from

the

reinvestment

of

cash

collateral

from

loaned

securities,

net

of

fees

and

collateral

investment

expenses,

and

other

payments

to

and

from

borrowers

of

securities.

(c)

As

of

period

end,

the

entity

is

no

longer

held.

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

71

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Short

Contracts

Euro-

Bobl

...............................................................

23

12/08/22

$

2,699

$

75,332

U.S.

Treasury

10

Year

Note

...................................................

1,067

12/20/22

119,571

6,196,559

U.S.

Treasury

Long

Bond

....................................................

43

12/20/22

5,441

405,931

U.S.

Treasury

Ultra

Bond

....................................................

1,205

12/20/22

164,708

15,158,712

$

21,836,534

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

USD

1,634,212

EUR

1,625,000

Bank

of

America

NA

12/21/22

$

31,538

USD

333,311,692

EUR

331,954,000

JPMorgan

Chase

Bank

NA

12/21/22

5,918,408

USD

61,705,242

GBP

53,653,000

HSBC

Bank

plc

12/21/22

1,725,620

7,675,566

USD

1,900,131

EUR

1,941,000

Morgan

Stanley

&

Co.

International

plc

12/21/22

(14,202)

USD

438,638

EUR

445,000

State

Street

Bank

and

Trust

Co.

12/21/22

(247)

USD

754,788

GBP

694,000

Bank

of

New

York

Mellon

12/21/22

(21,048)

(35,497)

$

7,640,069

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EURO

STOXX

50

Index

.......................

215

10/21/22

EUR

3,400.00

EUR

7,134

$

275,610

EURO

STOXX

50

Index

.......................

36

11/18/22

EUR

3,400.00

EUR

1,195

60,826

STOXX

Europe

600

Auto

&

Parts

.................

102

12/16/22

EUR

470.00

EUR

2,432

151,447

STOXX

Europe

600

Auto

&

Parts

.................

161

12/16/22

EUR

350.00

EUR

3,838

46,942

STOXX

Europe

600

Chemicals

..................

72

12/16/22

EUR

1,040.00

EUR

3,794

177,467

STOXX

Europe

600

Chemicals

..................

78

12/16/22

EUR

840.00

EUR

4,110

27,138

STOXX

Europe

600

Personal

&

Household

Goods

.....

46

12/16/22

EUR

800.00

EUR

2,041

40,123

$

779,553

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

72

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Credit

Default

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate/Reference

Rate/Reference

Frequency

Counterparty

Expiration

Date

Exercise

Price

Notional

Amount

(000)

(a)

Value

Call

Bought

Protection

on

5-Year

Credit

Default

Swap

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

5.00

%

Quarterly

Barclays

Bank

plc

11/16/22

EUR

300.00

EUR

5,700

$

1,058

Bought

Protection

on

5-Year

Credit

Default

Swap

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

5.00

Quarterly

Barclays

Bank

plc

10/19/22

EUR

300.00

EUR

14,200

1,064

2,122

Put

Bought

Protection

on

5-Year

Credit

Default

Swap

5.00

%

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

Quarterly

Barclays

Bank

plc

10/19/22

EUR

700.00

EUR

14,200

55,430

Bought

Protection

on

5-Year

Credit

Default

Swap

5.00

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

Quarterly

Barclays

Bank

plc

11/16/22

EUR

750.00

EUR

5,700

44,964

100,394

$

102,516

(a)

The

maximum

potential

amount

the

Fund

may

pay

should

a

negative

credit

event

take

place

as

defined

under

the

terms

of

the

agreement.

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EURO

STOXX

50

Index

........................

215

10/21/22

EUR

3,200.00

EUR

7,134

$

(99,350)

EURO

STOXX

50

Index

........................

18

11/18/22

EUR

3,100.00

EUR

597

(11,008)

STOXX

Europe

600

Auto

&

Parts

..................

102

12/16/22

EUR

400.00

EUR

2,432

(56,980)

STOXX

Europe

600

Chemicals

...................

72

12/16/22

EUR

940.00

EUR

3,794

(69,152)

$

(236,490)

OTC

Credit

Default

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate/Reference

Rate/Reference

Frequency

Counterparty

Expiration

Date

Credit

Rating

(a)

Exercise

Price

Notional

Amount

(000)

(b)

Value

Call

Sold

Protection

on

5-Year

Credit

Default

Swap

.........

5.00

%

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

Quarterly

Barclays

Bank

plc

11/16/22

NR

EUR

525.00

EUR

5,700

$

(31,495)

(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.

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

73

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Centrally

Cleared

Credit

Defa

ul

t

Swaps

—

Sell

Protection

Reference

Obligation/Index

Financing

Rate

Received

by

the

Fund

Payment

Frequency

Termination

Date

Credit

Rating

(a)

Notional

Amount

(000)

(b)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

CDX.NA.HY.39.V1

.....

5.00

%

Quarterly

12/20/27

B+

USD

1

50,000

$

(5,630,975)

$

(5,630,975)

$

—

(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

Credit

Default

Swap

s

—

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)

Casino

Guichard

Perrachon

SA

.............

5.00

%

Quarterly

Goldman

Sachs

International

06/20/23

NR

EUR

810

$

(148,538)

$

(69,085)

$

(79,453)

Casino

Guichard

Perrachon

SA

.............

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/23

B

EUR

540

(99,025)

(38,193)

(60,832)

Casino

Guichard

Perrachon

SA

.............

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/23

B

EUR

1,140

(209,054)

(154,337)

(54,717)

Casino

Guichard

Perrachon

SA

.............

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/23

B

EUR

1,100

(201,719)

(72,115)

(129,604)

Casino

Guichard

Perrachon

SA

.............

5.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

06/20/23

B

EUR

1,500

(275,071)

(225,298)

(49,773)

Lumen

Technologies,

Inc.

1.00

Quarterly

Barclays

Bank

plc

06/20/23

NR

USD

20,000

(85,740)

(325,578)

239,838

Novafives

SAS

.......

5.00

Quarterly

Citibank

NA

06/20/23

B-

EUR

740

(99,058)

(37,978)

(61,080)

Novafives

SAS

.......

5.00

Quarterly

Goldman

Sachs

International

06/20/23

B-

EUR

229

(30,618)

(12,102)

(18,516)

Novafives

SAS

.......

5.00

Quarterly

Goldman

Sachs

International

06/20/23

B-

EUR

401

(53,715)

(19,816)

(33,899)

Lumen

Technologies,

Inc.

1.00

Quarterly

Barclays

Bank

plc

12/20/23

NR

USD

5,176

(78,249)

(96,961)

18,712

Faurecia

SE

.........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/25

BB

EUR

680

16,878

28,837

(11,959)

Virgin

Media

Finance

plc

.

5.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/25

B

EUR

1,050

18,269

94,834

(76,565)

CMA

CGM

SA

........

5.00

Quarterly

Credit

Suisse

International

06/20/26

NR

EUR

370

(2,871)

14,672

(17,543)

CMA

CGM

SA

........

5.00

Quarterly

Goldman

Sachs

International

06/20/26

BB+

EUR

240

(1,863)

17,060

(18,923)

CMA

CGM

SA

........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/26

BB+

EUR

520

(10,074)

19,598

(29,672)

CMA

CGM

SA

........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/26

BB+

EUR

351

(6,810)

23,079

(29,889)

Jaguar

Land

Rover

Automotive

plc

.....

5.00

Quarterly

Bank

of

America

NA

12/20/26

B+

EUR

700

(138,074)

(25,988)

(112,086)

Jaguar

Land

Rover

Automotive

plc

.....

5.00

Quarterly

Barclays

Bank

plc

12/20/26

B+

EUR

543

(107,136)

20,233

(127,369)

Jaguar

Land

Rover

Automotive

plc

.....

5.00

Quarterly

Credit

Suisse

International

12/20/26

B+

EUR

528

(104,138)

20,800

(124,938)

Jaguar

Land

Rover

Automotive

plc

.....

5.00

Quarterly

Credit

Suisse

International

12/20/26

B+

EUR

1,405

(277,134)

51,989

(329,123)

Jaguar

Land

Rover

Automotive

plc

.....

5.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

12/20/26

B+

EUR

1,405

(277,134)

61,070

(338,204)

K+S

AG

............

5.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/26

BB

EUR

1,220

9,977

93,319

(83,342)

Cellnex

Telecom

SA

....

5.00

Quarterly

Credit

Suisse

International

06/20/27

BB+

EUR

1,800

135,232

152,055

(16,823)

CMA

CGM

SA

........

5.00

Quarterly

Barclays

Bank

plc

06/20/27

BB+

EUR

140

(4,815)

4,174

(8,989)

CMA

CGM

SA

........

5.00

Quarterly

Credit

Suisse

International

06/20/27

BB+

EUR

2,820

(96,741)

122,643

(219,384)

CMA

CGM

SA

........

5.00

Quarterly

Credit

Suisse

International

06/20/27

BB+

EUR

774

(26,552)

24,989

(51,541)

CMA

CGM

SA

........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB+

EUR

778

(26,681)

27,186

(53,867)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

74

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Credit

Default

Swaps

—

Sell

Protection

(continued)

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)

CMA

CGM

SA

........

5.00

%

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB+

EUR

731

$

(25,080)

$

25,555

$

(50,635)

CMA

CGM

SA

........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB+

EUR

207

(7,095)

7,102

(14,197)

Ladbrokes

Group

Finance

plc

.............

1.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB

EUR

403

(71,486)

(57,997)

(13,489)

Ladbrokes

Group

Finance

plc

.............

1.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB

EUR

1,637

(290,029)

(276,048)

(13,981)

Ladbrokes

Group

Finance

plc

.............

1.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB

EUR

473

(83,881)

(49,816)

(34,065)

Ladbrokes

Group

Finance

plc

.............

1.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

BB

EUR

237

(41,940)

(24,908)

(17,032)

Novafives

SAS

.......

5.00

Quarterly

Credit

Suisse

International

06/20/27

B-

EUR

390

(152,806)

(92,296)

(60,510)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Bank

of

America

NA

12/20/27

CCC

EUR

737

(207,818)

(182,688)

(25,130)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Barclays

Bank

plc

12/20/27

CCC

EUR

443

(124,915)

(108,268)

(16,647)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Barclays

Bank

plc

12/20/27

CCC

EUR

1,245

(351,112)

(304,322)

(46,790)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Citibank

NA

12/20/27

CCC

EUR

361

(101,882)

(90,902)

(10,980)

ADLER

Real

Estate

AG

.

5.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/27

CCC

EUR

756

(213,213)

(185,707)

(27,506)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

12/20/27

CCC

EUR

548

(154,592)

(134,553)

(20,039)

$

(4,006,303)

$

(1,775,761)

$

(2,230,542)

(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

Total

Return

Swaps

Paid

by

the

Fund

Received

by

the

Fund

Rate/Reference

Frequency

Rate/Reference

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

JPMorgan

Chase

Bank

NA

12/20/22

USD

36,149

$

(5,038,276)

$

(196)

$

(5,038,080)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

JPMorgan

Chase

Bank

NA

12/20/22

USD

87,172

(11,804,309)

(503)

(11,803,806)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

Morgan

Stanley

&

Co.

International

plc

12/20/22

USD

60,000

(4,378,815)

(19,088)

(4,359,727)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

Morgan

Stanley

&

Co.

International

plc

12/20/22

USD

23,044

(1,105,865)

(3,834)

(1,102,031)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

Morgan

Stanley

&

Co.

International

plc

12/20/22

USD

92,380

(6,046,102)

(11,336)

(6,034,766)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

Morgan

Stanley

&

Co.

International

plc

12/20/22

USD

106,143

(13,749,535)

(1,180)

(13,748,355)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

Morgan

Stanley

&

Co.

International

plc

12/20/22

USD

81,282

(11,366,069)

(442)

(11,365,627)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

Morgan

Stanley

&

Co.

International

plc

12/20/22

USD

59,961

(8,545,534)

(326)

(8,545,208)

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

75

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

i

OTC

Total

Return

Swaps

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Rate/Reference

Frequency

Rate/Reference

Frequency

Counterparty

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

BNP

Paribas

SA

03/20/23

USD

89,406

$

(4,347,937)

$

(23,726)

$

(4,324,211)

1

day

SOFR

.......

Quarterly

iBoxx

USD

Liquid

High

Yield

Index

TR

At

Termination

JPMorgan

Chase

Bank

NA

03/20/23

USD

94,920

(7,072,093)

(44,391)

(7,027,702)

$

(73,454,535)

$

(105,022)

$

(73,349,513)

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

%

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps,

OTC

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

—

$

(5,630,975)

$

—

$

—

$

—

OTC

Swaps

.....................................................

809,195

(2,689,978)

258,550

(75,838,605)

—

Options

Written

...................................................

N/A

N/A

18,178

(69,521)

(267,985)

(a)

Includes

cumulative

appreciation

(depreciation)

on

centrally

cleared

swaps,

as

reported

in

the

Consolidated

Schedule

of

Investments.

Only

current

day’s

variation

margin

is

reported

within

the

Statements

of

Assets

and

Liabilities

and

is

net

of

any

previously

paid

(received)

swap

premium

amounts.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

76

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

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)

.....

$

—

$

—

$

—

$

—

$

21,836,534

$

—

$

21,836,534

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

7,675,566

—

—

7,675,566

Options

purchased

Investments

at

value

—

unaffiliated

(b)

...........

—

102,516

779,553

—

—

—

882,069

Swaps

—

OTC

Unrealized

appreciation

on

OTC

swaps;

Swap

premiums

paid

................................

—

1,067,745

—

—

—

—

1,067,745

$

—

$

1,170,261

$

779,553

$

7,675,566

$

21,836,534

$

—

$

31,461,914

Liabilities

—

Derivative

Financial

Instruments

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

$

—

$

—

$

—

$

35,497

$

—

$

—

$

35,497

Options

written

Options

written

at

value

.....................

—

31,495

236,490

—

—

—

267,985

Swaps

—

OTC

Unrealized

depreciation

on

OTC

swaps;

Swap

premiums

received

.............................

—

5,074,048

—

—

73,454,535

—

78,528,583

$

—

$

5,105,543

$

236,490

$

35,497

$

73,454,535

$

—

$

78,832,065

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts,

if

any,

are

reported

in

the

Consolidated

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).

(b)

Includes

options

purchased

at

value

as

reported

in

the

Consolidated

Schedule

of

Investments.

For

the

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

11,086,414

$

—

$

48,640,255

$

—

$

59,726,669

Forward

foreign

currency

exchange

contracts

....

—

—

—

107,069,076

—

—

107,069,076

Options

purchased

(a)

....................

—

(1,927,521)

5,920,219

—

(164,237)

—

3,828,461

Options

written

........................

—

1,856,439

(217,563)

—

24,590

—

1,663,466

Swaps

..............................

—

(35,938,514)

(102,740,872)

—

(46,214,962)

—

(184,894,348)

$

—

$

(36,009,596)

$

(85,951,802)

$

107,069,076

$

2,285,646

$

—

$

(12,606,676)

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

19,629,984

$

—

$

19,629,984

Forward

foreign

currency

exchange

contracts

....

—

—

—

(7,581,612)

—

—

(7,581,612)

Options

purchased

(b)

....................

—

(140,150)

95,443

—

—

—

(44,707)

Options

written

........................

—

18,178

(69,521)

—

—

—

(51,343)

Swaps

..............................

—

2,737,216

2,104,273

—

(85,369,913)

—

(80,528,424)

$

—

$

2,615,244

$

2,130,195

$

(7,581,612)

$

(65,739,929)

$

—

$

(68,576,102)

(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.

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

77

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

short

.................................................................................

$

207,904,165

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

559,814,507

Average

amounts

sold

—

in

USD

........................................................................................

$

4,060,997

Options

Average

value

of

option

contracts

purchased

................................................................................

$

1,183,208

Average

value

of

option

contracts

written

...................................................................................

$

399,381

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

9,751,498

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

1,396,571

Credit

default

swaps

Average

notional

value

—

sell

protection

...................................................................................

$

138,579,966

Total

return

swaps

Average

notional

value

...............................................................................................

$

855,564,500

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

2,747,526

$

—

Forward

foreign

currency

exchange

contracts

.................................................................

7,675,566

35,497

Options

(a)

.........................................................................................

882,069

267,985

Swaps

—

centrally

cleared

..............................................................................

—

5,628,804

Swaps

—

OTC

(b)

....................................................................................

1,067,745

78,528,583

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

12,372,906

$

84,460,869

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(3,527,079)

(5,865,294)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

8,845,827

$

78,595,575

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Statements

of

Assets

and

Liabilities

and

reported

in

the

Consolidated

Schedule

of

Investments.

(b)

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

..............................

$

31,538

$

(31,538)

$

—

$

—

$

—

Barclays

Bank

plc

................................

385,473

(385,473)

—

—

—

Credit

Suisse

International

..........................

387,148

(387,148)

—

—

—

Goldman

Sachs

International

........................

17,060

(17,060)

—

—

—

HSBC

Bank

plc

..................................

1,725,620

—

—

—

1,725,620

JPMorgan

Chase

Bank

NA

..........................

6,237,918

(6,237,918)

—

—

—

Morgan

Stanley

&

Co.

International

plc

..................

61,070

(61,070)

—

—

—

$

8,845,827

$

(7,120,207)

$

—

$

—

$

1,725,620

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

78

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

Cash

Collateral

Pledged

(d)

Net

Amount

of

Derivative

Liabilities

(c)(e)

Bank

of

America

NA

..............................

$

345,892

$

(31,538)

$

—

$

(314,354)

$

—

Bank

of

New

York

Mellon

...........................

21,048

—

—

—

21,048

Barclays

Bank

plc

................................

1,066,419

(385,473)

—

(180,000)

500,946

BNP

Paribas

SA

.................................

4,347,937

—

—

(3,430,000)

917,937

Citibank

NA

....................................

200,940

—

—

—

200,940

Credit

Suisse

International

..........................

912,158

(387,148)

—

(470,000)

55,010

Goldman

Sachs

International

........................

251,794

(17,060)

—

(210,000)

24,734

JPMorgan

Chase

Bank

NA

..........................

25,475,151

(6,237,918)

—

(19,237,233)

—

Morgan

Stanley

&

Co.

International

plc

..................

45,973,989

(61,070)

—

(42,010,000)

3,902,919

State

Street

Bank

and

Trust

Co.

......................

247

—

—

—

247

$

78,595,575

$

(7,120,207)

$

—

$

(65,851,587)

$

5,623,781

(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)

Excess

of

collateral

received/pledged,

if

any,

from

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

(e)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

79

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Consolidated

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

....................................

$

—

$

15,905,266

$

—

$

15,905,266

Common

Stocks

Auto

Components

......................................

120

—

—

120

Building

Products

.......................................

246,674

—

—

246,674

Chemicals

............................................

23,128,706

—

—

23,128,706

Commercial

Services

&

Supplies

.............................

—

—

3

3

Electrical

Equipment

.....................................

5,170,665

10,338,749

—

15,509,414

Hotels,

Restaurants

&

Leisure

..............................

—

—

—

—

IT

Services

...........................................

4,761,998

—

—

4,761,998

Life

Sciences

Tools

&

Services

..............................

14,574,536

—

—

14,574,536

Media

...............................................

4,435,624

—

—

4,435,624

Metals

&

Mining

........................................

17,649,796

—

—

17,649,796

Oil,

Gas

&

Consumable

Fuels

...............................

44,434,291

—

40,678

44,474,969

Road

&

Rail

...........................................

4,639,726

—

—

4,639,726

Semiconductors

&

Semiconductor

Equipment

....................

4,065

—

—

4,065

Software

.............................................

12,237,843

—

—

12,237,843

Corporate

Bonds

Aerospace

&

Defense

....................................

—

642,052,721

—

642,052,721

Airlines

..............................................

—

323,826,402

—

323,826,402

Auto

Components

......................................

—

312,912,794

—

312,912,794

Automobiles

..........................................

—

60,752,592

—

60,752,592

Banks

...............................................

—

111,909,225

—

111,909,225

Biotechnology

.........................................

—

4,044,794

—

4,044,794

Building

Products

.......................................

—

137,160,422

—

137,160,422

Capital

Markets

........................................

—

89,285,884

78,403

89,364,287

Chemicals

............................................

—

389,977,505

—

389,977,505

Commercial

Services

&

Supplies

.............................

—

518,032,262

—

518,032,262

Communications

Equipment

................................

—

141,510,312

—

141,510,312

Construction

&

Engineering

................................

—

35,989,027

—

35,989,027

Consumer

Finance

......................................

—

233,919,069

—

233,919,069

Containers

&

Packaging

..................................

—

344,375,103

—

344,375,103

Distributors

...........................................

—

21,456,734

—

21,456,734

Diversified

Consumer

Services

..............................

—

92,528,733

—

92,528,733

Diversified

Financial

Services

...............................

—

171,241,674

—

171,241,674

Diversified

Telecommunication

Services

........................

—

1,164,553,039

—

1,164,553,039

Electric

Utilities

........................................

—

118,993,151

—

118,993,151

Electrical

Equipment

.....................................

—

53,767,872

—

53,767,872

Electronic

Equipment,

Instruments

&

Components

.................

—

70,738,203

—

70,738,203

Energy

Equipment

&

Services

..............................

—

169,992,118

—

169,992,118

Entertainment

.........................................

—

256,783,258

—

256,783,258

Equity

Real

Estate

Investment

Trusts

(REITs)

....................

—

266,913,402

—

266,913,402

Food

&

Staples

Retailing

..................................

—

107,178,330

—

107,178,330

Food

Products

.........................................

—

293,597,127

—

293,597,127

Gas

Utilities

...........................................

—

5,333,088

—

5,333,088

Health

Care

Equipment

&

Supplies

...........................

—

144,807,429

—

144,807,429

Health

Care

Providers

&

Services

............................

—

581,039,239

—

581,039,239

Health

Care

Technology

..................................

—

17,680,382

—

17,680,382

Hotels,

Restaurants

&

Leisure

..............................

—

882,844,248

—

882,844,248

Household

Durables

.....................................

—

140,168,136

—

140,168,136

Household

Products

.....................................

—

27,433,468

—

27,433,468

Independent

Power

and

Renewable

Electricity

Producers

............

—

51,393,050

—

51,393,050

Insurance

............................................

—

454,675,621

—

454,675,621

Interactive

Media

&

Services

...............................

—

28,033,028

—

28,033,028

Internet

&

Direct

Marketing

Retail

............................

—

46,009,504

—

46,009,504

IT

Services

...........................................

—

327,709,908

—

327,709,908

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

80

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Level

1

Level

2

Level

3

Total

Leisure

Products

.......................................

$

—

$

35,207,728

$

—

$

35,207,728

Life

Sciences

Tools

&

Services

..............................

—

60,466,565

—

60,466,565

Machinery

............................................

—

205,527,053

—

205,527,053

Marine

..............................................

—

12,620,191

—

12,620,191

Media

...............................................

—

979,520,413

—

979,520,413

Metals

&

Mining

........................................

—

384,893,805

—

384,893,805

Mortgage

Real

Estate

Investment

Trusts

(REITs)

..................

—

6,481,662

—

6,481,662

Multiline

Retail

.........................................

—

16,816,826

—

16,816,826

Oil,

Gas

&

Consumable

Fuels

...............................

—

1,807,301,083

—

1,807,301,083

Paper

&

Forest

Products

..................................

—

870,755

—

870,755

Personal

Products

......................................

—

9,994,051

—

9,994,051

Pharmaceuticals

.......................................

—

110,445,097

—

110,445,097

Professional

Services

....................................

—

70,410,637

—

70,410,637

Real

Estate

Management

&

Development

.......................

—

68,831,309

—

68,831,309

Road

&

Rail

...........................................

—

215,911,528

—

215,911,528

Semiconductors

&

Semiconductor

Equipment

....................

—

123,468,985

—

123,468,985

Software

.............................................

—

674,453,121

—

674,453,121

Specialty

Retail

........................................

—

332,340,935

—

332,340,935

Technology

Hardware,

Storage

&

Peripherals

....................

—

62,558

—

62,558

Textiles,

Apparel

&

Luxury

Goods

............................

—

29,836,121

—

29,836,121

Thrifts

&

Mortgage

Finance

................................

—

67,906,580

—

67,906,580

Trading

Companies

&

Distributors

............................

—

110,198,922

—

110,198,922

Transportation

Infrastructure

...............................

—

9,568,341

—

9,568,341

Water

Utilities

.........................................

—

721,903

—

721,903

Wireless

Telecommunication

Services

.........................

—

128,909,745

—

128,909,745

Floating

Rate

Loan

Interests

Aerospace

&

Defense

....................................

—

92,964,292

—

92,964,292

Airlines

..............................................

—

115,693,089

—

115,693,089

Auto

Components

......................................

—

1,858,335

—

1,858,335

Beverages

...........................................

—

1,752,080

—

1,752,080

Capital

Markets

........................................

—

16,773,826

—

16,773,826

Chemicals

............................................

—

72,241,857

—

72,241,857

Commercial

Services

&

Supplies

.............................

—

31,158,108

10,897,920

42,056,028

Communications

Equipment

................................

—

10,718,376

—

10,718,376

Construction

&

Engineering

................................

—

105,960,365

7,083,861

113,044,226

Containers

&

Packaging

..................................

—

18,307,157

—

18,307,157

Diversified

Consumer

Services

..............................

—

30,767,525

—

30,767,525

Diversified

Financial

Services

...............................

—

13,052,554

15,526,850

28,579,404

Diversified

Telecommunication

Services

........................

—

45,297,024

—

45,297,024

Energy

Equipment

&

Services

..............................

—

—

454,660

454,660

Food

Products

.........................................

—

2,549,226

—

2,549,226

Health

Care

Equipment

&

Supplies

...........................

—

16,942,473

—

16,942,473

Health

Care

Providers

&

Services

............................

—

21,062,695

—

21,062,695

Health

Care

Technology

..................................

—

61,873,932

49,890,913

111,764,845

Hotels,

Restaurants

&

Leisure

..............................

—

23,712,074

—

23,712,074

Household

Durables

.....................................

—

30,483,452

—

30,483,452

Insurance

............................................

—

11,286,073

—

11,286,073

Interactive

Media

&

Services

...............................

—

12,031,075

—

12,031,075

Internet

&

Direct

Marketing

Retail

............................

—

—

4,726,657

4,726,657

IT

Services

...........................................

—

35,198,037

—

35,198,037

Leisure

Products

.......................................

—

5,725,906

—

5,725,906

Machinery

............................................

—

62,521,016

—

62,521,016

Media

...............................................

—

112,282,114

—

112,282,114

Oil,

Gas

&

Consumable

Fuels

...............................

—

173,926,439

—

173,926,439

Professional

Services

....................................

—

3,578,933

21,109,389

24,688,322

Road

&

Rail

...........................................

—

7,222,513

—

7,222,513

Software

.............................................

—

416,073,103

109,891,138

525,964,241

Specialty

Retail

........................................

—

4,846,157

—

4,846,157

Textiles,

Apparel

&

Luxury

Goods

............................

—

23,249,672

—

23,249,672

Trading

Companies

&

Distributors

............................

—

12,797,376

—

12,797,376

Transportation

Infrastructure

...............................

—

39,534,979

—

39,534,979

Wireless

Telecommunication

Services

.........................

—

11,137,606

—

11,137,606

Foreign

Agency

Obligations

.................................

—

14,535,166

—

14,535,166

Other

Interests

..........................................

—

84,082

—

84,082

Preferred

Securities

Banks

...............................................

—

56,532,890

—

56,532,890

BlackRock

High

Yield

Bond

Portfolio

Consolidated

Schedules

of

Investments

81

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

Level

1

Level

2

Level

3

Total

Capital

Markets

........................................

$

—

$

55,551,733

$

11,263,408

$

66,815,141

Consumer

Finance

......................................

—

9,106,882

—

9,106,882

Electric

Utilities

........................................

—

27,965,000

—

27,965,000

Independent

Power

and

Renewable

Electricity

Producers

............

—

13,190,308

—

13,190,308

Insurance

............................................

—

—

17,886,735

17,886,735

Wireless

Telecommunication

Services

.........................

—

5,891,091

—

5,891,091

Short-Term

Securities

Money

Market

Funds

......................................

921,378,283

—

—

921,378,283

Options

Purchased

Credit

contracts

..........................................

—

102,516

—

102,516

Equity

contracts

..........................................

779,553

—

—

779,553

Liabilities

Investments

S

old

Short

Common

Stocks

.........................................

(3,030)

—

—

(3,030)

$

1,053,438,850

$

16,157,167,890

$

248,850,615

$

17,459,457,355

Investments

valued

at

NAV

(a)

......................................

9,839,213

$

—

$

17,469,296,568

$

—

Derivative

Financial

Instruments

(b)

Assets

Credit

contracts

...........................................

$

—

$

258,550

$

—

$

258,550

Foreign

currency

exchange

contracts

............................

—

7,675,566

—

7,675,566

Interest

rate

contracts

.......................................

21,836,534

—

—

21,836,534

Liabilities

Credit

contracts

...........................................

—

(2,520,587)

—

(2,520,587)

Equity

contracts

...........................................

(236,490)

—

—

(236,490)

Foreign

currency

exchange

contracts

............................

—

(35,497)

—

(35,497)

Interest

rate

contracts

.......................................

—

(73,349,513)

—

(73,349,513)

$

21,600,044

$

(67,971,481)

$

—

$

(46,371,437)

(a)

Certain

investments

of

the

Fund

were

fair

valued

using

NAV

per

share

as

no

quoted

market

value

is

available

and

therefore

have

been

excluded

from

the

fair

value

hierarchy.

(b)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

High

Yield

Bond

Portfolio

82

Consolidated

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

A

reconciliation

of

Level

3

financial

instruments

is

presented

when

the

Fund

had

a

significant

amount

of

Level

3

investments

and

derivative

financial

instruments

at

the

beginning

and/or

end

of

the

year

in

relation

to

net

assets.

The

following

table

is

a

reconciliation

of

Level

3

investments

for

which

significant

unobservable

inputs

were

used

in

determining

fair

value:

Asset-

Backed

Securities

Common

Stocks

Corporate

Bonds

Floating

Rate

Loan

Interests

Preferred

Securities

Total

Investments

Assets

Opening

balance,

as

of

September

30,

2021

...........................................

$

—

$

714,835

$

33,677,831

$

249,833,188

$

31,722,497

$

315,948,351

Transfers

into

Level

3

.........................................................

200

—

—

140,005,327

—

140,005,527

Transfers

out

of

Level

3

........................................................

—

(674,154)

(334,763)

(94,282,089)

—

(95,291,006)

Accrued

discounts/premiums

.....................................................

—

—

9,016

643,000

—

652,016

Net

realized

gain

(loss)

........................................................

—

—

14,042,431

(2,271,290)

—

11,771,141

Net

change

in

unrealized

depreciation

(a)(b)

............................................

(200)

—

(11,883,020)

(24,065,468)

(2,572,354)

(38,521,042)

Purchases

.................................................................

—

—

—

37,159,906

—

37,159,906

Sales

....................................................................

—

—

(35,433,092)

(87,441,186)

—

(122,874,278)

Closing

balance,

as

of

September

30,

2022

...........................................

$

—

$

40,681

$

78,403

$

219,581,388

$

29,150,143

$

248,850,615

Net

change

in

unrealized

depreciation

on

investments

still

held

at

September

30,

2022

(b)

..............

$

—

$

—

$

(98,503)

$

(21,231,065)

$

(2,572,354)

$

(23,901,922)

(a)

Included

in

the

related

net

change

in

unrealized

appreciation

(depreciation)

in

the

Statements

of

Operations.

(b)

Any

difference

between

net

change

in

unrealized

appreciation

(depreciation)

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

still

held

at

September

30,

2022

is

generally

due

to

investments

no

longer

held

or

categorized

as

Level

3

at

period

end.

The

Fund’s

financial

instruments

that

are

categorized

as

Level

3

were

valued

utilizing

third

party

pricing

information

without

adjustment.

Such

valuations

are

based

on

unobservable

inputs.

A

significant

change

in

third

party

information

could

result

in

a

significantly

lower

or

higher

value

of

such

Level

3

financial

instruments.

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

83

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

ACRES

Commercial

Realty

Ltd.,

Series

2021-FL2,

Class

A,

(LIBOR

USD

1

Month

+

1.40%),

4.34%,

01/15/37

(a)(b)

.........

USD

5,780

$

5,577,802

AGL

CLO

12

Ltd.,

Series

2021-12A,

Class

A1,

(LIBOR

USD

3

Month

+

1.16%),

3.87%,

07/20/34

(a)(b)

....................

5,500

5,275,889

AGL

Core

CLO

2

Ltd.,

Series

2019-2A,

Class

B,

(LIBOR

USD

3

Month

+

1.90%),

4.61%,

04/20/32

(a)(b)

....................

1,000

948,221

AGL

Core

CLO

4

Ltd.,

Series

2020-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/33

(a)(b)

...............

1,250

1,212,123

AIG

CLO

LLC,

Series

2018-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.12%),

3.83%,

04/20/32

(a)(b)

....................

1,400

1,364,159

AIMCO

CLO

(a)(b)

Series

2017-AA,

Class

AR,

(LIBOR

USD

3

Month

+

1.05%),

3.76%,

04/20/34

...

8,000

7,643,374

Series

2018-BA,

Class

AR,

(LIBOR

USD

3

Month

+

1.10%),

3.61%,

01/15/32

...

3,500

3,403,988

Ajax

Mortgage

Loan

Trust

(b)(c)

Series

2019-G,

Class

A,

3.00%,

09/25/59

5,233

4,971,710

Series

2021-C,

Class

A,

2.12%,

01/25/61

1,985

1,829,116

Allegro

CLO

II-S

Ltd.,

Series

2014-1RA,

Class

A1,

(LIBOR

USD

3

Month

+

1.08%),

3.81%,

10/21/28

(a)(b)

....................

4,467

4,406,792

American

Express

Credit

Account

Master

Trust

Series

2022-2,

Class

A,

3.39%,

05/15/27

.

28,044

27,131,841

Series

2022-3,

Class

A,

3.75%,

08/15/27

.

649

632,209

AmeriCredit

Automobile

Receivables

Trust,

Series

2020-2,

Class

B,

0.97%,

02/18/26

.

3,870

3,780,083

AMMC

CLO

XIII

Ltd.,

Series

2013-13A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.05%),

3.83%,

07/24/29

(a)(b)

...............

7,897

7,810,767

Anchorage

Capital

CLO

16

Ltd.,

Series

2020-

16A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.20%),

3.94%,

01/19/35

(a)(b)

.........

1,750

1,673,839

Anchorage

Capital

CLO

7

Ltd.,

Series

2015-7A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.09%),

3.88%,

01/28/31

(a)(b)

...............

14,523

14,272,940

Anchorage

Capital

CLO

LLC,

Series

2019-13A,

Class

AR,

(LIBOR

USD

3

Month

+

1.10%),

3.61%,

04/15/34

(a)(b)

...............

4,260

4,098,963

Apidos

CLO

XX,

Series

2015-20A,

Class

A1RA,

(LIBOR

USD

3

Month

+

1.10%),

3.84%,

07/16/31

(a)(b)

....................

1,500

1,456,809

Aqua

Finance

Trust,

Series

2021-A,

Class

A,

1.54%,

07/17/46

(b)

................

2,428

2,198,082

Arbor

Realty

Commercial

Real

Estate

Notes

Ltd.

(a)(b)

Series

2021-FL2,

Class

A,

(LIBOR

USD

1

Month

+

1.10%),

3.92%,

05/15/36

...

14,460

14,038,778

Series

2021-FL4,

Class

A,

(LIBOR

USD

1

Month

+

1.35%),

4.17%,

11/15/36

...

12,750

12,478,655

Ares

LVI

CLO

Ltd.,

Series

2020-56A,

Class

AR,

(LIBOR

USD

3

Month

+

1.16%),

3.94%,

10/25/34

(a)(b)

....................

4,400

4,233,997

ARI

Fleet

Lease

Trust

(b)

Series

2020-A,

Class

B,

2.06%,

11/15/28

.

1,470

1,426,552

Series

2022-A,

Class

A2,

3.12%,

01/15/31

16,036

15,743,050

Arm

Master

Trust

LLC,

Series

2021-T1,

Class

A,

2.43%,

11/15/27

(b)

..............

730

667,315

Assurant

CLO

Ltd.,

Series

2018-2A,

Class

A,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

04/20/31

(a)(b)

....................

1,750

1,702,932

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Atlas

Senior

Loan

Fund

III

Ltd.,

Series

2013-

1A,

Class

AR,

(LIBOR

USD

3

Month

+

0.83%),

3.77%,

11/17/27

(a)(b)

.........

USD

1,943

$

1,916,926

Autoflorence

SRL

(a)(d)

Series

2,

Class

C,

(EURIBOR

1

Month

+

1.15%),

1.20%,

12/24/44

.........

EUR

414

381,533

Series

2,

Class

D,

(EURIBOR

1

Month

+

2.35%),

2.40%,

12/24/44

.........

222

207,172

Autonoria

Spain

(a)(d)

Series

2021-SP,

Class

C,

(EURIBOR

1

Month

+

1.05%),

1.73%,

01/31/39

...

1,915

1,839,968

Series

2021-SP,

Class

D,

(EURIBOR

1

Month

+

1.55%),

2.23%,

01/31/39

...

730

693,711

Series

2021-SP,

Class

E,

(EURIBOR

1

Month

+

2.65%),

3.33%,

01/31/39

...

547

510,598

Series

2021-SP,

Class

F,

(EURIBOR

1

Month

+

3.90%),

4.58%,

01/31/39

...

91

85,218

Azure

Finance

No.

2

plc,

Series

2,

Class

C,

(Sterling

Overnight

Index

Average

+

3.00%),

5.19%,

07/20/30

(a)(d)

...............

GBP

1,055

1,175,749

BA

Credit

Card

Trust,

Series

2022-A1,

Class

A1,

3.53%,

11/15/27

...............

USD

5,347

5,186,712

Bain

Capital

Credit

CLO

Ltd.,

Series

2017-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.50%),

4.21%,

07/20/30

(a)(b)

...............

1,350

1,285,263

Ballyrock

CLO

Ltd.,

Series

2016-1A,

Class

CR2,

(LIBOR

USD

3

Month

+

1.90%),

4.41%,

10/15/28

(a)(b)

...............

2,250

2,176,159

Barings

CLO

Ltd.

(a)(b)

Series

2019-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/31

...

900

877,157

Series

2019-4A,

Class

A1,

(LIBOR

USD

3

Month

+

1.33%),

3.84%,

01/15/33

...

6,350

6,161,654

Battalion

CLO

X

Ltd.,

Series

2016-10A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.17%),

3.95%,

01/25/35

(a)(b)

...............

5,500

5,290,799

Battalion

CLO

XX

Ltd.,

Series

2021-20A,

Class

A,

(LIBOR

USD

3

Month

+

1.18%),

3.69%,

07/15/34

(a)(b)

....................

4,500

4,320,388

BDS

Ltd.,

Series

2021-FL10,

Class

A,

(LIBOR

USD

1

Month

+

1.35%),

4.34%,

12/16/36

(a)(b)

13,580

13,206,550

Benefit

Street

Partners

CLO

II

Ltd.,

Series

2013-IIA,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.45%),

3.96%,

07/15/29

(a)(b)

........

8,400

8,156,978

Benefit

Street

Partners

CLO

III

Ltd.,

Series

2013-IIIA,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

07/20/29

(a)(b)

...

1,350

1,311,314

Benefit

Street

Partners

CLO

V-B

Ltd.,

Series

2018-5BA,

Class

A1A,

(LIBOR

USD

3

Month

+

1.09%),

3.80%,

04/20/31

(a)(b)

........

2,230

2,183,169

BHG

Securitization

Trust

(b)

Series

2021-A,

Class

A,

1.42%,

11/17/33

.

309

286,990

Series

2022-B,

Class

A,

3.75%,

06/18/35

.

2,018

1,986,855

BL

Consumer

Credit

(a)(d)

Series

2021-1,

Class

C,

(EURIBOR

1

Month

+

1.10%),

1.16%,

09/25/38

........

EUR

528

506,003

Series

2021-1,

Class

D,

(EURIBOR

1

Month

+

1.65%),

1.71%,

09/25/38

........

681

652,799

Series

2021-1,

Class

E,

(EURIBOR

1

Month

+

2.85%),

2.91%,

09/25/38

........

356

339,384

BlueMountain

CLO

XXII

Ltd.,

Series

2018-22A,

Class

A1,

(LIBOR

USD

3

Month

+

1.08%),

3.59%,

07/15/31

(a)(b)

...............

USD

6,990

6,786,549

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

84

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

BlueMountain

Fuji

US

CLO

III

Ltd.,

Series

2017-3A,

Class

A2,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

01/15/30

(a)(b)

.........

USD

250

$

240,242

Brex

Commercial

Charge

Card

Master

Trust,

Series

2021-1,

Class

A,

2.09%,

07/15/24

(b)

2,130

2,089,204

Brignole

Co.

SRL,

Series

2021,

Class

D,

(EURIBOR

1

Month

+

1.60%),

1.65%,

07/24/36

(a)(d)

....................

EUR

100

95,236

BSPRT

Issuer

Ltd.,

Series

2021-FL7,

Class

A,

(LIBOR

USD

1

Month

+

1.32%),

4.14%,

12/15/38

(a)(b)

....................

USD

6,890

6,692,101

Capital

One

Multi-Asset

Execution

Trust,

Series

2022-A2,

Class

A,

3.49%,

05/15/27

.....

24,357

23,615,310

Carlyle

Global

Market

Strategies

CLO

Ltd.

(a)(b)

Series

2014-1A,

Class

A1R2,

(LIBOR

USD

3

Month

+

0.97%),

3.71%,

04/17/31

...

3,988

3,868,239

Series

2014-5A,

Class

A1RR,

(LIBOR

USD

3

Month

+

1.14%),

3.65%,

07/15/31

..

5,996

5,827,574

CarMax

Auto

Owner

Trust,

Series

2022-2,

Class

A3,

3.49%,

02/16/27

..........

15,234

14,856,788

CBAM

Ltd.,

Series

2019-9A,

Class

B2,

(LIBOR

USD

3

Month

+

1.90%),

4.41%,

02/12/30

(a)(b)

3,500

3,367,597

Cedar

Funding

II

CLO

Ltd.,

Series

2013-1A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.08%),

3.79%,

04/20/34

(a)(b)

...............

8,750

8,347,633

Cedar

Funding

IX

CLO

Ltd.,

Series

2018-9A,

Class

A1,

(LIBOR

USD

3

Month

+

0.98%),

3.69%,

04/20/31

(a)(b)

...............

1,940

1,891,323

Cedar

Funding

X

CLO

Ltd.,

Series

2019-10A,

Class

BR,

(LIBOR

USD

3

Month

+

1.60%),

4.31%,

10/20/32

(a)(b)

...............

570

533,970

Cedar

Funding

XI

CLO

Ltd.,

Series

2019-11A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.35%),

4.39%,

05/29/32

(a)(b)

...............

1,500

1,438,176

Chesapeake

Funding

II

LLC

(b)

Series

2019-1A,

Class

B,

3.11%,

04/15/31

5,230

5,227,209

Series

2019-1A,

Class

C,

3.36%,

04/15/31

4,930

4,927,378

Series

2019-1A,

Class

D,

3.80%,

04/15/31

6,630

6,626,361

Series

2020-1A,

Class

B,

1.24%,

08/15/32

1,170

1,127,384

Series

2020-1A,

Class

C,

2.14%,

08/15/32

720

701,053

CIFC

Funding

2013-III-R

Ltd.,

Series

2013-

3RA,

Class

A1,

(LIBOR

USD

3

Month

+

0.98%),

3.76%,

04/24/31

(a)(b)

.........

3,770

3,664,322

CIFC

Funding

Ltd.

(a)(b)

Series

2012-2RA,

Class

A1,

(LIBOR

USD

3

Month

+

0.80%),

3.51%,

01/20/28

...

678

669,302

Series

2013-2A,

Class

A1L2,

(LIBOR

USD

3

Month

+

1.00%),

3.74%,

10/18/30

...

2,190

2,149,669

Series

2015-3A,

Class

BR,

(LIBOR

USD

3

Month

+

1.15%),

3.89%,

04/19/29

...

8,500

8,171,788

Series

2021-4A,

Class

A,

(LIBOR

USD

3

Month

+

1.05%),

3.56%,

07/15/33

...

5,000

4,863,758

Series

2021-4A,

Class

B,

(LIBOR

USD

3

Month

+

1.58%),

4.09%,

07/15/33

...

500

479,077

Series

2021-5A,

Class

A,

(LIBOR

USD

3

Month

+

1.14%),

3.65%,

07/15/34

...

3,350

3,207,231

College

Avenue

Student

Loans

LLC

(a)(b)

Series

2021-A,

Class

A1,

(LIBOR

USD

1

Month

+

1.10%),

4.18%,

07/25/51

...

349

336,320

Series

2021-B,

Class

A1,

(LIBOR

USD

1

Month

+

0.80%),

3.88%,

06/25/52

...

4,823

4,642,022

Credit

Acceptance

Auto

Loan

Trust

(b)

Series

2020-1A,

Class

A,

2.01%,

02/15/29

4,323

4,317,389

Series

2020-2A,

Class

A,

1.37%,

07/16/29

4,948

4,882,757

Series

2021-2A,

Class

A,

0.96%,

02/15/30

18,920

18,041,448

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2022-1A,

Class

A,

4.60%,

06/15/32

USD

11,180

$

10,903,507

Discover

Card

Execution

Note

Trust,

Series

2022-A2,

Class

A,

3.32%,

05/15/27

.....

42,146

40,672,463

Dowson

plc

(a)(d)

Series

2021-2,

Class

C,

(Sterling

Overnight

Index

Average

+

1.60%),

3.79%,

10/20/28

....................

GBP

1,300

1,402,930

Series

2022-1,

Class

C,

(Sterling

Overnight

Index

Average

+

2.25%),

4.44%,

01/20/29

....................

1,151

1,238,503

Series

2022-1,

Class

D,

(Sterling

Overnight

Index

Average

+

2.70%),

4.89%,

01/20/29

....................

601

634,214

Dryden

36

Senior

Loan

Fund,

Series

2014-36A,

Class

AR3,

(LIBOR

USD

3

Month

+

1.02%),

3.53%,

04/15/29

(a)(b)

...............

USD

2,695

2,653,725

Dryden

43

Senior

Loan

Fund,

Series

2016-43A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.04%),

3.75%,

04/20/34

(a)(b)

...............

5,750

5,533,914

Dryden

45

Senior

Loan

Fund,

Series

2016-45A,

Class

BR,

(LIBOR

USD

3

Month

+

1.70%),

4.21%,

10/15/30

(a)(b)

...............

3,150

2,960,602

Dryden

49

Senior

Loan

Fund,

Series

2017-49A,

Class

BR,

(LIBOR

USD

3

Month

+

1.60%),

4.34%,

07/18/30

(a)(b)

...............

3,250

3,086,915

Dryden

65

CLO

Ltd.,

Series

2018-65A,

Class

B,

(LIBOR

USD

3

Month

+

1.60%),

4.34%,

07/18/30

(a)(b)

....................

500

472,021

Dryden

77

CLO

Ltd.,

Series

2020-77A,

Class

AR,

(LIBOR

USD

3

Month

+

1.12%),

4.10%,

05/20/34

(a)(b)

....................

1,000

962,683

Dryden

83

CLO

Ltd.,

Series

2020-83A,

Class

A,

(LIBOR

USD

3

Month

+

1.22%),

3.96%,

01/18/32

(a)(b)

....................

450

440,915

Dryden

87

CLO

Ltd.,

Series

2021-87A,

Class

A1,

(LIBOR

USD

3

Month

+

1.10%),

4.08%,

05/20/34

(a)(b)

....................

750

718,605

Dryden

XXVI

Senior

Loan

Fund,

Series

2013-

26A,

Class

AR,

(LIBOR

USD

3

Month

+

0.90%),

3.41%,

04/15/29

(a)(b)

.........

12,567

12,353,845

EDvestinU

Private

Education

Loan

Issue

No.

1

LLC,

Series

2019-A,

Class

A,

3.58%,

11/25/38

(b)

.....................

4,247

3,985,536

EDvestinU

Private

Education

Loan

Issue

No.

3

LLC,

Series

2021-A,

Class

B,

3.50%,

11/25/50

(b)

.....................

640

507,618

ELFI

Graduate

Loan

Program

LLC,

Series

2022-A,

Class

A,

4.51%,

08/26/47

(b)

....

9,336

8,992,844

Elmwood

CLO

II

Ltd.,

Series

2019-2A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

04/20/34

(a)(b)

....................

4,200

3,981,871

Enterprise

Fleet

Financing

LLC,

Series

2022-1,

Class

A2,

3.03%,

01/20/28

(b)

.........

20,464

19,911,081

Fairstone

Financial

Issuance

Trust

I,

Series

2020-1A,

Class

A,

2.51%,

10/20/39

(b)

...

CAD

9,610

6,786,710

FCT

Autonoria,

Series

2019-1,

Class

E,

(EURIBOR

1

Month

+

2.70%),

3.38%,

09/25/35

(a)(d)

....................

EUR

151

143,638

FCT

Noria,

Series

2021-1,

Class

D,

(EURIBOR

1

Month

+

1.50%),

2.18%,

10/25/49

(a)(d)

..

802

748,752

FCT

Pixel,

Series

2021-1,

Class

D,

(EURIBOR

3

Month

+

1.75%),

2.22%,

02/25/38

(a)(d)

..

300

281,592

Flatiron

CLO

21

Ltd.,

Series

2021-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.11%),

3.85%,

07/19/34

(a)(b)

....................

USD

8,500

8,139,530

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

85

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

FNA

VI

LLC,

Series

2021-1A,

Class

A,

1.35%,

01/10/32

(b)

.....................

USD

381

$

348,486

Foundation

Finance

Trust,

Series

2021-2A,

Class

A,

2.19%,

01/15/42

(b)

..........

1,868

1,707,032

FS

Rialto

(a)(b)

Series

2021-FL2,

Class

A,

(LIBOR

USD

1

Month

+

1.22%),

4.16%,

05/16/38

...

6,690

6,507,105

Series

2021-FL3,

Class

A,

(LIBOR

USD

1

Month

+

1.25%),

4.19%,

11/16/36

...

8,380

8,010,955

FS

Rialto

Issuer

LLC

(a)(b)

Series

2022-FL4,

Class

A,

(SOFR

30

Day

Average

+

1.90%),

4.18%,

01/19/39

..

9,585

9,361,645

Series

2022-FL6,

Class

A,

(1

Month

CME

Term

SOFR

+

2.58%),

4.58%,

08/17/37

6,450

6,383,202

FT

Santander

Consumer

Spain

Auto

(d)

Series

2020-1,

Class

B,

(EURIBOR

3

Month

+

0.95%),

0.78%,

03/20/33

(a)

.......

EUR

526

505,728

Series

2020-1,

Class

C,

(EURIBOR

3

Month

+

1.95%),

1.78%,

03/20/33

(a)

.......

158

149,322

Series

2020-1,

Class

D,

3.50%,

03/20/33

.

263

242,779

Galaxy

XXIV

CLO

Ltd.,

Series

2017-24A,

Class

A,

(LIBOR

USD

3

Month

+

1.12%),

3.63%,

01/15/31

(a)(b)

....................

USD

3,500

3,419,425

Galaxy

XXVII

CLO

Ltd.,

Series

2018-27A,

Class

A,

(LIBOR

USD

3

Month

+

1.02%),

3.94%,

05/16/31

(a)(b)

...............

10,500

10,223,304

GM

Financial

Consumer

Automobile

Receivables

Trust,

Series

2022-3,

Class

A3,

3.64%,

04/16/27

.................

13,597

13,297,609

GoldenTree

Loan

Opportunities

X

Ltd.,

Series

2015-10A,

Class

AR,

(LIBOR

USD

3

Month

+

1.12%),

3.83%,

07/20/31

(a)(b)

........

5,275

5,143,398

GoldenTree

Loan

Opportunities

XI

Ltd.,

Series

2015-11A,

Class

AR2,

(LIBOR

USD

3

Month

+

1.07%),

3.81%,

01/18/31

(a)(b)

........

3,065

3,000,473

GoldentTree

Loan

Management

US

CLO

1

Ltd.,

Series

2021-11A,

Class

A,

(LIBOR

USD

3

Month

+

1.13%),

3.84%,

10/20/34

(a)(b)

...

8,950

8,549,182

GoodLeap

Sustainable

Home

Solutions

Trust

(b)

Series

2021-4GS,

Class

A,

1.93%,

07/20/48

3,470

2,786,918

Series

2021-5CS,

Class

A,

2.31%,

10/20/48

2,722

2,262,467

Series

2022-1GS,

Class

A,

2.70%,

01/20/49

2,677

2,254,902

Series

2022-2CS,

Class

A,

4.00%,

04/20/49

1,405

1,281,926

Series

2022-3CS,

Class

A,

4.95%,

07/20/49

5,893

5,643,545

GPMT

Ltd.,

Series

2021-FL4,

Class

A,

(LIBOR

USD

1

Month

+

1.35%),

4.40%,

12/15/36

(a)(b)

10,000

9,673,088

Gracie

Point

International

Funding

(a)(b)

Series

2020-B,

Class

A,

(LIBOR

USD

1

Month

+

1.40%),

3.96%,

05/02/23

...

5,840

5,838,818

Series

2022-2A,

Class

A,

(SOFR

30

Day

Average

+

2.75%),

5.03%,

07/01/24

(e)

.

11,000

10,958,750

Harley-Davidson

Motorcycle

Trust,

Series

2020-A,

Class

A3,

1.87%,

10/15/24

.....

2,983

2,971,906

Hipgnosis

Music

Assets

LP,

Series

2022-1,

Class

A,

5.00%,

05/16/62

(b)

..........

3,063

2,793,931

Hyundai

Auto

Receivables

Trust,

Series

2022-

B,

Class

A3,

3.72%,

11/16/26

.........

8,353

8,192,276

Jamestown

CLO

XII

Ltd.,

Series

2019-1A,

Class

A2,

(LIBOR

USD

3

Month

+

2.15%),

4.86%,

04/20/32

(a)(b)

...............

1,000

936,568

LCM

XXIII

Ltd.,

Series

23A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

10/20/29

(a)(b)

485

465,145

LendingPoint

Pass-Through

Trust,

Series

2022-

ST1,

Class

A,

2.50%,

03/15/28

(b)

......

450

425,551

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Lendmark

Funding

Trust

(b)

Series

2019-2A,

Class

A,

2.78%,

04/20/28

USD

6,170

$

6,002,214

Series

2021-1A,

Class

A,

1.90%,

11/20/31

6,470

5,435,824

LoanCore

Issuer

Ltd.

(a)(b)

Series

2018-CRE1,

Class

A,

(LIBOR

USD

1

Month

+

1.13%),

3.95%,

05/15/28

...

149

146,124

Series

2021-CRE5,

Class

A,

(LIBOR

USD

1

Month

+

1.30%),

4.12%,

07/15/36

...

5,310

5,144,063

Series

2021-CRE6,

Class

A,

(LIBOR

USD

1

Month

+

1.30%),

4.12%,

11/15/38

...

7,230

6,976,950

Loanpal

Solar

Loan

Ltd.

(b)

Series

2020-2GF,

Class

A,

2.75%,

07/20/47

1,944

1,608,489

Series

2021-1GS,

Class

A,

2.29%,

01/20/48

3,023

2,479,643

Series

2021-2GS,

Class

A,

2.22%,

03/20/48

5,943

4,726,984

Logan

CLO

I

Ltd.,

Series

2021-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.16%),

3.87%,

07/20/34

(a)(b)

....................

1,755

1,681,132

Long

Point

Park

CLO

Ltd.,

Series

2017-1A,

Class

A2,

(LIBOR

USD

3

Month

+

1.38%),

4.12%,

01/17/30

(a)(b)

...............

1,140

1,074,488

Longfellow

Place

CLO

Ltd.,

Series

2013-1A,

Class

BR3,

(LIBOR

USD

3

Month

+

1.75%),

4.26%,

04/15/29

(a)(b)

...............

5,000

4,889,785

Madison

Park

Funding

LXII

Ltd.,

Series

2022-

62A,

Class

A1,

(3

Month

CME

Term

SOFR

+

2.25%),

4.76%,

07/17/33

(a)(b)

.........

13,160

12,883,886

Madison

Park

Funding

XIX

Ltd.

(a)(b)

Series

2015-19A,

Class

A1R2,

(LIBOR

USD

3

Month

+

0.92%),

3.68%,

01/22/28

..

7,393

7,260,627

Series

2015-19A,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.50%),

4.26%,

01/22/28

..

15,900

15,451,213

Madison

Park

Funding

XLI

Ltd.,

Series

12A,

Class

AR,

(LIBOR

USD

3

Month

+

0.83%),

3.59%,

04/22/27

(a)(b)

...............

8,168

8,041,367

Madison

Park

Funding

XXV

Ltd.,

Series

2017-

25A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.65%),

4.43%,

04/25/29

(a)(b)

.........

5,550

5,360,404

Madison

Park

Funding

XXVII

Ltd.,

Series

2018-

27A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.03%),

3.74%,

04/20/30

(a)(b)

.........

1,400

1,367,460

Madison

Park

Funding

XXVIII

Ltd.,

Series

2018-28A,

Class

B,

(LIBOR

USD

3

Month

+

1.60%),

4.11%,

07/15/30

(a)(b)

.........

1,000

952,382

Madison

Park

Funding

XXXIII

Ltd.,

Series

2019-33A,

Class

AR,

(3

Month

CME

Term

SOFR

+

1.29%),

3.62%,

10/15/32

(a)(b)

...

3,000

2,905,709

Madison

Park

Funding

XXXVII

Ltd.,

Series

2019-37A,

Class

AR,

(LIBOR

USD

3

Month

+

1.07%),

3.58%,

07/15/33

(a)(b)

........

2,900

2,808,872

Madison

Park

Funding

XXXVIII

Ltd.,

Series

2021-38A,

Class

A,

(LIBOR

USD

3

Month

+

1.12%),

3.86%,

07/17/34

(a)(b)

.........

3,000

2,888,112

Mariner

Finance

Issuance

Trust

(b)

Series

2019-AA,

Class

A,

2.96%,

07/20/32

5,446

5,346,060

Series

2020-AA,

Class

A,

2.19%,

08/21/34

3,020

2,915,151

Series

2021-AA,

Class

B,

2.33%,

03/20/36

1,610

1,335,040

Series

2021-AA,

Class

C,

2.96%,

03/20/36

380

309,130

Series

2021-AA,

Class

D,

3.83%,

03/20/36

345

284,726

Mercury

Financial

Credit

Card

Master

Trust,

Series

2021-1A,

Class

A,

1.54%,

03/20/26

(b)

8,260

7,846,997

Mill

City

Solar

Loan

Ltd.,

Series

2019-2GS,

Class

A,

3.69%,

07/20/43

(b)

..........

9,070

8,240,358

Mosaic

Solar

Loan

Trust

(b)

Series

2019-2A,

Class

A,

2.88%,

09/20/40

234

202,950

Series

2020-2A,

Class

B,

2.21%,

08/20/46

1,091

926,944

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

86

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2021-1A,

Class

B,

2.05%,

12/20/46

USD

669

$

534,988

Series

2022-1A,

Class

B,

3.16%,

01/20/53

4,734

4,071,075

Series

2022-2A,

Class

A,

4.38%,

01/21/53

2,817

2,652,154

Navient

Private

Education

Loan

Trust

(a)(b)

Series

2020-A,

Class

A2B,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

11/15/68

...

1,201

1,184,105

Series

2020-IA,

Class

A1B,

(LIBOR

USD

1

Month

+

1.00%),

3.82%,

04/15/69

...

11,665

11,366,593

Navient

Private

Education

Refi

Loan

Trust

(b)

Series

2019-CA,

Class

A2,

3.13%,

02/15/68

2,140

2,051,493

Series

2019-EA,

Class

A2B,

(LIBOR

USD

1

Month

+

0.92%),

3.74%,

05/15/68

(a)

..

7,899

7,833,294

Series

2019-GA,

Class

A,

2.40%,

10/15/68

810

750,428

Series

2021-A,

Class

A,

0.84%,

05/15/69

.

1,271

1,118,222

Series

2021-DA,

Class

A,

(US

Prime

Rate

-

1.99%),

3.51%,

04/15/60

(a)

........

10,158

9,290,692

Series

2021-FA,

Class

A,

1.11%,

02/18/70

14,098

11,910,379

Navient

Student

Loan

Trust,

Series

2018-EA,

Class

A2,

4.00%,

12/15/59

(b)

.........

906

895,201

Nelnet

Student

Loan

Trust

(b)

Series

2021-A,

Class

APT2,

1.36%,

04/20/62

....................

15,955

14,094,581

Series

2021-A,

Class

D,

4.93%,

04/20/62

1,150

956,298

Series

2021-BA,

Class

AFL,

(LIBOR

USD

1

Month

+

0.78%),

3.77%,

04/20/62

(a)

..

10,400

10,057,164

Series

2021-BA,

Class

AFX,

1.42%,

04/20/62

....................

15,501

13,825,586

Series

2021-CA,

Class

AFL,

(LIBOR

USD

1

Month

+

0.74%),

3.73%,

04/20/62

(a)

..

11,516

11,142,898

Neuberger

Berman

CLO

XX

Ltd.,

Series

2015-

20A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.16%),

3.67%,

07/15/34

(a)(b)

.........

10,000

9,651,450

Neuberger

Berman

Loan

Advisers

CLO

42

Ltd.,

Series

2021-42A,

Class

A,

(LIBOR

USD

3

Month

+

1.10%),

3.84%,

07/16/35

(a)(b)

...

4,000

3,830,628

Newday

Funding

Master

Issuer

plc

(a)(d)

Series

2021-1X,

Class

B,

(Sterling

Overnight

Index

Average

+

1.55%),

3.74%,

03/15/29

....................

GBP

775

848,077

Series

2021-3X,

Class

B,

(Sterling

Overnight

Index

Average

+

1.35%),

3.54%,

11/15/29

....................

677

734,274

NLY

Commercial

Mortgage

Trust,

Series

2019-FL2,

Class

A,

(LIBOR

USD

1

Month

+

1.30%),

4.12%,

02/15/36

(a)(b)

.........

USD

1,187

1,182,570

OCP

CLO

Ltd.

(a)(b)

Series

2014-7A,

Class

A1RR,

(LIBOR

USD

3

Month

+

1.12%),

3.83%,

07/20/29

..

2,777

2,729,750

Series

2017-13A,

Class

A1AR,

(LIBOR

USD

3

Month

+

0.96%),

3.47%,

07/15/30

..

4,000

3,912,772

Octagon

66

Ltd.,

Series

2022-1A,

Class

A,

(3

Month

CME

Term

SOFR

+

1.94%),

4.59%,

08/16/33

(a)(b)

....................

13,325

13,017,855

Octagon

Investment

Partners

30

Ltd.,

Series

2017-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.95%),

4.66%,

03/17/30

(a)(b)

.........

4,200

3,898,184

Octagon

Investment

Partners

33

Ltd.,

Series

2017-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.19%),

3.90%,

01/20/31

(a)(b)

.........

2,400

2,353,991

Octagon

Investment

Partners

35

Ltd.,

Series

2018-1A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.06%),

3.77%,

01/20/31

(a)(b)

........

1,000

979,933

Octagon

Investment

Partners

51

Ltd.,

Series

2021-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.15%),

3.86%,

07/20/34

(a)(b)

.........

8,895

8,514,301

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Octagon

Investment

Partners

XV

Ltd.,

Series

2013-1A,

Class

A2R,

(LIBOR

USD

3

Month

+

1.35%),

4.09%,

07/19/30

(a)(b)

........

USD

1,750

$

1,706,943

Octagon

Investment

Partners

XVII

Ltd.,

Series

2013-1A,

Class

A2R2,

(LIBOR

USD

3

Month

+

1.10%),

3.88%,

01/25/31

(a)(b)

........

1,750

1,681,937

OHA

Credit

Funding

3

Ltd.,

Series

2019-3A,

Class

AR,

(LIBOR

USD

3

Month

+

1.14%),

3.85%,

07/02/35

(a)(b)

...............

850

817,020

OneMain

Financial

Issuance

Trust,

Series

2022-S1,

Class

A,

4.13%,

05/14/35

(b)

...

11,738

11,149,142

Oportun

Funding

LLC,

Series

2022-1,

Class

A,

3.25%,

06/15/29

(b)

................

3,425

3,352,529

Oportun

Issuance

Trust

(b)

Series

2021-B,

Class

C,

3.65%,

05/08/31

370

334,408

Series

2021-C,

Class

A,

2.18%,

10/08/31

5,450

4,810,383

Series

2022-2,

Class

A,

5.94%,

10/09/29

.

2,789

2,772,434

Palmer

Square

CLO

Ltd.

(a)(b)

Series

2013-2A,

Class

A1A3,

(LIBOR

USD

3

Month

+

1.00%),

3.74%,

10/17/31

...

3,300

3,209,153

Series

2014-1A,

Class

A1R2,

(LIBOR

USD

3

Month

+

1.13%),

3.87%,

01/17/31

...

15,000

14,743,993

Park

Avenue

Institutional

Advisers

CLO

Ltd.,

Series

2018-1A,

Class

A1BR,

(LIBOR

USD

3

Month

+

1.25%),

3.96%,

10/20/31

(a)(b)

..

10,000

9,659,568

PCL

Funding

V

plc,

Series

2021-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.70%),

3.89%,

10/15/25

(a)(d)

...............

GBP

116

126,482

PCL

Funding

VI

plc,

Series

2022-1,

Class

B,

(Sterling

Overnight

Index

Average

+

3.10%),

5.29%,

07/15/26

(a)(d)

...............

1,400

1,545,092

PFS

Financing

Corp.

(b)

Series

2020-G,

Class

A,

0.97%,

02/15/26

USD

6,800

6,410,234

Series

2021-A,

Class

A,

0.71%,

04/15/26

.

4,740

4,422,307

Series

2022-D,

Class

A,

4.27%,

08/15/27

11,908

11,532,332

Pikes

Peak

CLO

11,

Series

2022-11A,

Class

A1,

(3

Month

CME

Term

SOFR

+

1.95%),

4.13%,

07/25/34

(a)(b)

...............

7,000

6,784,843

Prodigy

Finance

DAC,

Series

2021-1A,

Class

A,

(LIBOR

USD

1

Month

+

1.25%),

4.33%,

07/25/51

(a)(b)

....................

2,510

2,449,360

Progress

Residential

Trust,

Series

2021-

SFR10,

Class

A,

2.39%,

12/17/40

(b)

....

3,574

3,001,082

Rad

CLO

15

Ltd.,

Series

2021-15A,

Class

A,

(LIBOR

USD

3

Month

+

1.09%),

3.80%,

01/20/34

(a)(b)

....................

2,650

2,547,937

Recette

CLO

Ltd.,

Series

2015-1A,

Class

ARR,

(LIBOR

USD

3

Month

+

1.08%),

3.79%,

04/20/34

(a)(b)

....................

10,000

9,541,782

Red

&

Black

Auto

Germany

8

UG,

Series

8,

Class

C,

(EURIBOR

1

Month

+

0.95%),

0.92%,

09/15/30

(a)(d)

...............

EUR

400

377,387

Red

&

Black

Auto

Italy

Srl,

Series

1,

Class

D,

(EURIBOR

1

Month

+

2.85%),

3.55%,

12/28/31

(a)(d)

....................

599

558,168

Regional

Management

Issuance

Trust

(b)

Series

2020-1,

Class

A,

2.34%,

10/15/30

.

USD

2,430

2,244,748

Series

2021-2,

Class

A,

1.90%,

08/15/33

.

5,706

4,687,706

Series

2022-1,

Class

B,

3.71%,

03/15/32

.

1,050

928,299

Rockford

Tower

CLO

Ltd.

(a)(b)

Series

2017-3A,

Class

A,

(LIBOR

USD

3

Month

+

1.19%),

3.90%,

10/20/30

...

2,400

2,346,811

Series

2021-1A,

Class

A1,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

07/20/34

...

10,750

10,328,040

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

87

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

RR

LLC,

Series

2017-1A,

Class

A1AB,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

07/15/35

(a)(b)

USD

5,500

$

5,273,236

Santander

Drive

Auto

Receivables

Trust,

Series

2020-2,

Class

C,

1.46%,

09/15/25

.....

4,870

4,845,220

Satus

plc

(a)(d)

Series

2021-1,

Class

D,

(Sterling

Overnight

Index

Average

+

1.90%),

4.09%,

08/17/28

....................

GBP

200

218,450

Series

2021-1,

Class

E,

(Sterling

Overnight

Index

Average

+

3.20%),

5.39%,

08/17/28

....................

167

179,921

SC

Germany

SA

Compartment

Consumer

(a)(d)

Series

2020-1,

Class

C,

(EURIBOR

1

Month

+

1.75%),

2.34%,

11/14/34

........

EUR

2,432

2,361,547

Series

2020-1,

Class

D,

(EURIBOR

1

Month

+

2.50%),

3.09%,

11/14/34

........

998

967,320

Service

Experts

Issuer

LLC,

Series

2021-1A,

Class

A,

2.67%,

02/02/32

(b)

..........

USD

1,846

1,668,611

Sesac

Finance

LLC

(b)

Series

2019-1,

Class

A2,

5.22%,

07/25/49

2,968

2,719,082

Series

2022-1,

Class

A2,

5.50%,

07/25/52

217

201,479

Shackleton

CLO

Ltd.,

Series

2015-7RA,

Class

AR,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

07/15/31

(a)(b)

....................

4,550

4,419,514

Signal

Peak

CLO

12

Ltd.,

Series

2022-12A,

Class

A1,

(3

Month

CME

Term

SOFR

+

1.54%),

3.66%,

07/18/34

(a)(b)

.........

7,250

7,046,438

Signal

Peak

CLO

8

Ltd.,

Series

2020-8A,

Class

B,

(LIBOR

USD

3

Month

+

1.65%),

4.36%,

04/20/33

(a)(b)

....................

2,500

2,325,876

Silver

Creek

CLO

Ltd.,

Series

2014-1A,

Class

AR,

(LIBOR

USD

3

Month

+

1.24%),

3.95%,

07/20/30

(a)(b)

....................

4,195

4,139,298

SLM

Private

Credit

Student

Loan

Trust

(a)

Series

2004-A,

Class

A3,

(LIBOR

USD

3

Month

+

0.40%),

3.69%,

06/15/33

...

728

708,978

Series

2004-B,

Class

A3,

(LIBOR

USD

3

Month

+

0.33%),

3.62%,

03/15/24

...

439

436,695

Series

2005-A,

Class

A4,

(LIBOR

USD

3

Month

+

0.31%),

3.60%,

12/15/38

...

6,397

6,179,882

Series

2005-B,

Class

A4,

(LIBOR

USD

3

Month

+

0.33%),

3.62%,

06/15/39

...

5,610

5,339,772

Series

2007-A,

Class

A4A,

(LIBOR

USD

3

Month

+

0.24%),

3.53%,

12/16/41

...

3,768

3,635,612

SLM

Private

Education

Loan

Trust,

Series

2010-C,

Class

A5,

(LIBOR

USD

1

Month

+

4.75%),

7.57%,

10/15/41

(a)(b)

.........

16,565

17,854,624

SLM

Student

Loan

Trust,

Series

2013-4,

Class

A,

(LIBOR

USD

1

Month

+

0.55%),

3.63%,

06/25/43

(a)

.....................

4,162

4,057,621

SMB

Private

Education

Loan

Trust

(b)

Series

2018-B,

Class

A2B,

(LIBOR

USD

1

Month

+

0.72%),

3.54%,

01/15/37

(a)

..

5,746

5,661,707

Series

2020-A,

Class

A2B,

(LIBOR

USD

1

Month

+

0.83%),

3.65%,

09/15/37

(a)

..

1,031

1,011,143

Series

2021-A,

Class

APL,

3.23%,

01/15/53

14,847

14,255,955

Series

2021-A,

Class

B,

2.31%,

01/15/53

3,930

3,442,182

Series

2021-B,

Class

A,

1.31%,

07/17/51

.

10,788

9,599,720

Series

2021-C,

Class

APT1,

1.39%,

01/15/53

....................

6,359

5,578,640

Series

2021-C,

Class

D,

3.93%,

01/15/53

400

354,697

Series

2022-C,

Class

A1A,

4.48%,

05/16/50

11,654

11,168,978

Series

2022-C,

Class

A1B,

(SOFR

30

Day

Average

+

1.85%),

0.88%,

05/16/50

(a)

.

6,792

6,771,830

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

SoFi

Professional

Loan

Program

LLC

(b)

Series

2016-C,

Class

A2B,

2.36%,

12/27/32

USD

16

$

15,775

Series

2016-D,

Class

A2B,

2.34%,

04/25/33

324

318,340

Series

2018-A,

Class

A2B,

2.95%,

02/25/42

2,136

2,087,860

Series

2019-A,

Class

A2FX,

3.69%,

06/15/48

....................

2,440

2,372,120

SoFi

Professional

Loan

Program

Trust

(b)

Series

2018-C,

Class

A2FX,

3.59%,

01/25/48

....................

1,695

1,645,438

Series

2020-A,

Class

A2FX,

2.54%,

05/15/46

....................

8,820

8,223,347

Series

2021-A,

Class

AFX,

1.03%,

08/17/43

2,896

2,461,084

Sound

Point

CLO

XV

Ltd.,

Series

2017-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.05%),

4.83%,

01/23/29

(a)(b)

...............

1,500

1,417,651

Soundview

Home

Loan

Trust,

Series

2003-2,

Class

A2,

(LIBOR

USD

1

Month

+

1.30%),

4.38%,

11/25/33

(a)

................

137

134,455

Southwick

Park

CLO

LLC,

Series

2019-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.06%),

3.77%,

07/20/32

(a)(b)

...............

5,650

5,454,335

SpringCastle

America

Funding

LLC,

Series

2020-AA,

Class

A,

1.97%,

09/25/37

(b)

...

5,667

5,180,196

Stratus

CLO

Ltd.,

Series

2022-2A,

Class

B,

(3

Month

CME

Term

SOFR

+

2.70%),

5.03%,

07/20/30

(a)(b)

....................

3,040

2,962,904

TAGUS-Sociedade

de

Titularizacao

de

Creditos

SA,

Series

2,

Class

D,

(EURIBOR

1

Month

+

2.85%),

3.56%,

09/23/38

(a)(d)

.........

EUR

900

863,623

Trestles

CLO

V

Ltd.,

Series

2021-5A,

Class

A1,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

10/20/34

(a)(b)

....................

USD

9,500

9,062,829

Trinitas

CLO

IV

Ltd.,

Series

2016-4A,

Class

A2L2,

(LIBOR

USD

3

Month

+

1.40%),

4.14%,

10/18/31

(a)(b)

...............

1,250

1,205,761

Turbo

Finance

plc,

Series

9,

Class

B,

(Sterling

Overnight

Index

Average

+

1.65%),

3.84%,

08/20/28

(a)(d)

....................

GBP

1,590

1,752,342

Upstart

Pass-Through

Trust

(b)

Series

2021-ST3,

Class

A,

2.00%,

05/20/27

USD

720

679,617

Series

2021-ST7,

Class

A,

1.85%,

09/20/29

3,544

3,308,204

Series

2021-ST9,

Class

A,

1.70%,

11/20/29

2,753

2,512,198

Verizon

Owner

Trust,

Series

2020-A,

Class

A1A,

1.85%,

07/22/24

.............

3,347

3,329,262

Volkswagen

Auto

Loan

Enhanced

Trust,

Series

2021-1,

Class

A3,

1.02%,

06/22/26

.....

25,048

23,734,871

Voya

CLO

Ltd.

(a)(b)

Series

2017-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

0.95%),

3.69%,

04/17/30

...

2,221

2,185,521

Series

2018-4A,

Class

BR,

(LIBOR

USD

3

Month

+

1.65%),

4.16%,

01/15/32

...

750

713,801

Wind

River

CLO

Ltd.,

Series

2013-1A,

Class

A1RR,

(LIBOR

USD

3

Month

+

0.98%),

3.69%,

07/20/30

(a)(b)

...............

2,950

2,907,100

Total

Asset-Backed

Securities

—

19.2%

(Cost:

$1,318,126,010)

...........................

1,259,157,697

Corporate

Bonds

Aerospace

&

Defense

—

0.2%

Boeing

Co.

(The),

2.20%,

02/04/26

......

4,800

4,259,700

Bombardier,

Inc.

(b)

7.13%,

06/15/26

.................

1,257

1,152,883

6.00%,

02/15/28

.................

677

566,428

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

88

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Aerospace

&

Defense

(continued)

BWX

Technologies,

Inc.

(b)

4.13%,

06/30/28

.................

USD

473

$

413,109

4.13%,

04/15/29

.................

172

148,785

L3Harris

Technologies,

Inc.,

3.85%,

06/15/23

1,194

1,188,317

Maxar

Technologies,

Inc.,

7.75%,

06/15/27

(b)

108

101,505

Rolls-Royce

plc,

5.75%,

10/15/27

(b)

......

1,664

1,445,600

Spirit

AeroSystems,

Inc.

(b)

5.50%,

01/15/25

.................

274

258,930

7.50%,

04/15/25

.................

34

32,036

TransDigm,

Inc.

8.00%,

12/15/25

(b)

................

1,851

1,877,303

6.25%,

03/15/26

(b)

................

3,545

3,438,650

6.38%,

06/15/26

.................

65

61,409

7.50%,

03/15/27

.................

117

111,384

4.63%,

01/15/29

.................

158

127,195

Triumph

Group,

Inc.,

8.88%,

06/01/24

(b)

...

469

463,320

15,646,554

Airlines

—

0.2%

Air

Canada,

3.88%,

08/15/26

(b)

.........

728

625,170

Allegiant

Travel

Co.,

7.25%,

08/15/27

(b)

...

105

98,963

American

Airlines,

Inc.

(b)

11.75%,

07/15/25

................

1,248

1,303,336

5.50%,

04/20/26

.................

760

713,309

Avianca

Midco

2

Ltd.,

9.00%,

12/01/28

(b)

...

1,356

1,026,674

Hawaiian

Brand

Intellectual

Property

Ltd.,

5.75%,

01/20/26

(b)

...............

480

423,355

Mileage

Plus

Holdings

LLC,

6.50%,

06/20/27

(b)

515

503,974

Spirit

Loyalty

Cayman

Ltd.,

8.00%,

09/20/25

(b)

110

110,873

United

Airlines

Pass-Through

Trust

Series

2020-1,

Class

B,

4.88%,

01/15/26

808

754,593

Series

2020-1,

Class

A,

5.88%,

10/15/27

4,832

4,660,875

United

Airlines,

Inc.

(b)

4.38%,

04/15/26

.................

767

684,547

4.63%,

04/15/29

.................

581

480,743

11,386,412

Auto

Components

—

0.3%

Aptiv

plc,

2.40%,

02/18/25

...........

7,610

7,101,262

Clarios

Global

LP

(b)

6.75%,

05/15/25

.................

2,664

2,608,669

6.25%,

05/15/26

.................

1,342

1,281,610

Conti-Gummi

Finance

BV,

1.13%,

09/25/24

(d)

EUR

2,240

2,100,576

Goodyear

Tire

&

Rubber

Co.

(The),

9.50%,

05/31/25

.....................

USD

344

356,900

Icahn

Enterprises

LP

4.75%,

09/15/24

.................

365

341,479

6.25%,

05/15/26

.................

461

430,823

5.25%,

05/15/27

.................

422

369,465

4.38%,

02/01/29

.................

51

41,049

ZF

Finance

GmbH,

3.00%,

09/21/25

(d)

....

EUR

2,700

2,341,893

16,973,726

Automobiles

—

1.0%

BMW

Finance

NV,

0.00%,

04/14/23

(d)

.....

6,120

5,929,158

General

Motors

Co.,

5.40%,

10/02/23

....

USD

4,920

4,920,492

Hyundai

Capital

America,

1.65%,

09/17/26

(b)

8,000

6,741,925

Mercedes-Benz

International

Finance

BV,

0.25%,

11/06/23

(d)

...............

EUR

1,970

1,875,110

Nissan

Motor

Acceptance

Co.

LLC,

2.00%,

03/09/26

(b)

....................

USD

21,000

17,760,157

Nissan

Motor

Co.

Ltd.

3.04%,

09/15/23

(b)

................

12,483

12,135,473

3.52%,

09/17/25

(b)

................

10,047

9,240,268

2.65%,

03/17/26

(d)

................

EUR

2,440

2,196,688

4.35%,

09/17/27

(b)

................

USD

5,300

4,568,529

Security

Par

(000)

Par

(000)

Value

Automobiles

(continued)

Stellantis

NV,

3.38%,

07/07/23

(d)

........

EUR

3,250

$

3,192,934

68,560,734

Banks

—

7.5%

Banco

Bradesco

SA,

2.85%,

01/27/23

(b)

...

USD

19,500

19,317,188

Banco

de

Sabadell

SA

(d)

0.88%,

07/22/25

.................

EUR

1,500

1,330,012

(EUR

Swap

Annual

1

Year

+

0.97%),

0.63%,

11/07/25

(a)

..............

1,900

1,717,239

(EUR

Swap

Annual

1

Year

+

1.55%),

1.13%,

03/11/27

(a)

..............

700

607,767

Banco

do

Brasil

SA,

4.75%,

03/20/24

(d)

....

USD

420

412,807

Banco

Nacional

de

Panama,

2.50%,

08/11/30

(b)

408

297,916

Banco

Santander

SA

2.75%,

05/28/25

.................

10,800

9,874,989

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%),

1.72%,

09/14/27

(a)

..............

3,000

2,481,823

Bank

Leumi

Le-Israel

BM,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.63%),

3.28%,

01/29/31

(a)(b)(d)

......

434

369,171

Bank

of

America

Corp.

(a)

(LIBOR

USD

3

Month

+

0.79%),

3.00%,

12/20/23

....................

25,530

25,394,449

(SOFR

6

Month

+

0.67%),

1.84%,

02/04/25

15,810

15,024,819

(SOFR

6

Month

+

0.91%),

0.98%,

09/25/25

16,700

15,194,218

(SOFR

6

Month

+

0.65%),

1.53%,

12/06/25

7,015

6,416,654

(SOFR

6

Month

+

1.15%),

1.32%,

06/19/26

9,487

8,420,640

(SOFR

6

Month

+

1.75%),

4.83%,

07/22/26

5,910

5,778,171

(SOFR

6

Month

+

1.01%),

1.20%,

10/24/26

16,100

14,048,110

Series

N,

(SOFR

6

Month

+

0.91%),

1.66%,

03/11/27

....................

13,500

11,697,697

(SOFR

6

Month

+

0.96%),

1.73%,

07/22/27

8,325

7,142,258

Bank

of

Montreal,

Series

H,

4.25%,

09/14/24

10,430

10,260,727

Banque

Federative

du

Credit

Mutuel

SA

(d)

2.63%,

03/18/24

.................

EUR

500

485,770

0.75%,

06/08/26

.................

1,700

1,492,146

Barclays

plc

(a)

(LIBOR

USD

3

Month

+

1.61%),

3.93%,

05/07/25

....................

USD

11,835

11,382,128

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.65%),

5.50%,

08/09/28

...............

16,460

15,430,206

Citigroup,

Inc.

(a)

(SOFR

6

Month

+

0.67%),

0.98%,

05/01/25

13,490

12,499,044

(SOFR

6

Month

+

1.53%),

3.29%,

03/17/26

7,155

6,755,131

(SOFR

6

Month

+

1.55%),

5.61%,

09/29/26

985

979,566

(SOFR

6

Month

+

0.77%),

1.46%,

06/09/27

31,455

26,780,757

Commerzbank

AG,

(EURIBOR

3

Month

+

1.30%),

0.75%,

03/24/26

(a)(d)

.........

EUR

800

712,222

Credit

Mutuel

Arkea

SA,

0.01%,

01/28/26

(d)

.

2,700

2,337,495

Danske

Bank

A/S

(a)(b)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.55%),

0.98%,

09/10/25

...............

USD

9,415

8,525,397

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.35%),

1.62%,

09/11/26

...............

20,650

17,870,989

First-Citizens

Bank

&

Trust

Co.,

(3

Month

CME

Term

SOFR

+

3.83%),

3.93%,

06/19/24

(a)

.

4,726

4,662,196

Grupo

Aval

Ltd.,

4.38%,

02/04/30

(b)

......

401

288,469

HSBC

Holdings

plc,

(SOFR

6

Month

+

1.43%),

3.00%,

03/10/26

(a)

...............

7,360

6,805,114

ING

Groep

NV

1.00%,

09/20/23

(d)

................

EUR

4,500

4,323,961

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

89

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

(EURIBOR

3

Month

+

0.60%),

0.10%,

09/03/25

(a)(d)

..................

EUR

1,700

$

1,549,409

(SOFR

6

Month

+

1.01%),

1.73%,

04/01/27

(a)

...................

USD

4,530

3,883,584

Itau

Unibanco

Holding

SA,

3.25%,

01/24/25

(b)

330

311,438

JPMorgan

Chase

&

Co.

1.50%,

01/27/25

(d)

................

EUR

1,855

1,742,041

(SOFR

6

Month

+

0.54%),

0.82%,

06/01/25

(a)

...................

USD

12,000

11,109,198

(SOFR

6

Month

+

1.85%),

2.08%,

04/22/26

(a)

...................

377

343,480

(SOFR

6

Month

+

0.80%),

1.05%,

11/19/26

(a)

...................

15,100

13,060,509

(SOFR

6

Month

+

0.89%),

1.58%,

04/22/27

(a)

...................

8,215

7,092,049

(SOFR

6

Month

+

1.99%),

4.85%,

07/25/28

(a)

...................

17,465

16,769,438

KBC

Group

NV

(d)

1.13%,

01/25/24

.................

EUR

3,800

3,614,654

(EURIBOR

3

Month

+

0.90%),

1.50%,

03/29/26

(a)

...................

3,000

2,761,124

(EUR

Swap

Annual

5

Year

+

1.10%),

0.50%,

12/03/29

(a)

..............

6,300

5,480,804

KeyBank

NA,

4.15%,

08/08/25

.........

USD

2,890

2,801,257

Mitsubishi

UFJ

Financial

Group,

Inc.

(a)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.70%),

4.79%,

07/18/25

...............

8,120

8,013,361

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.30%),

4.08%,

04/19/28

...............

4,400

4,095,028

Mizuho

Financial

Group,

Inc.,

0.52%,

06/10/24

(d)

....................

EUR

4,565

4,259,907

NatWest

Group

plc

(a)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.15%),

2.36%,

05/22/24

...............

USD

9,520

9,296,357

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%),

1.64%,

06/14/27

...............

12,340

10,360,082

NatWest

Markets

plc

0.13%,

06/18/26

(d)

................

EUR

4,200

3,549,243

1.60%,

09/29/26

(b)

................

USD

7,213

6,090,827

Nordea

Bank

Abp,

1.50%,

09/30/26

(b)

.....

11,300

9,630,865

PSA

Banque

France

SA,

0.00%,

01/22/25

(d)

.

EUR

2,100

1,895,593

Santander

Holdings

USA,

Inc.,

3.50%,

06/07/24

USD

3,000

2,907,237

Santander

UK

Group

Holdings

plc,

(LIBOR

USD

3

Month

+

1.08%),

3.37%,

01/05/24

(a)

3,715

3,690,970

Societe

Generale

SA,

(EUR

Swap

Annual

5

Year

+

0.90%),

1.38%,

02/23/28

(a)(d)

....

EUR

10,100

9,694,596

Standard

Chartered

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.78%),

0.99%,

01/12/25

(a)(b)

.......

USD

2,770

2,593,909

Svenska

Handelsbanken

AB,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.63%),

1.42%,

06/11/27

(a)(b)

....

8,100

6,977,457

Swedbank

AB,

5.34%,

09/20/27

(b)

.......

8,630

8,361,545

Toronto-Dominion

Bank

(The),

0.38%,

04/25/24

(d)

....................

EUR

2,625

2,459,821

UniCredit

SpA

6.95%,

10/31/22

(d)

................

6,430

6,315,737

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.30%),

2.57%,

09/22/26

(a)(b)

.............

USD

4,475

3,834,296

US

Bancorp,

(SOFR

6

Month

+

1.66%),

4.55%,

07/22/28

(a)

....................

14,390

13,867,000

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

Virgin

Money

UK

plc,

(EUR

Swap

Annual

1

Year

+

0.85%),

0.38%,

05/27/24

(a)(d)

....

EUR

2,350

$

2,243,600

Wells

Fargo

&

Co.

(a)

(SOFR

6

Month

+

1.32%),

3.91%,

04/25/26

USD

9,540

9,119,931

(SOFR

6

Month

+

1.51%),

3.53%,

03/24/28

19,770

17,906,031

494,799,624

Beverages

—

0.1%

Asahi

Group

Holdings

Ltd.

(d)

0.01%,

04/19/24

.................

EUR

2,062

1,925,325

0.16%,

10/23/24

.................

1,200

1,105,997

1.15%,

09/19/25

.................

1,700

1,563,378

Coca-Cola

Femsa

SAB

de

CV,

1.85%,

09/01/32

USD

410

297,967

Pernod

Ricard

SA,

0.00%,

10/24/23

(d)

....

EUR

3,600

3,419,957

8,312,624

Biotechnology

—

0.2%

AbbVie,

Inc.

1.50%,

11/15/23

.................

5,760

5,581,930

1.25%,

06/01/24

.................

1,305

1,238,171

2.95%,

11/21/26

.................

USD

7,815

7,159,777

13,979,878

Building

Products

—

0.1%

Advanced

Drainage

Systems,

Inc.,

5.00%,

09/30/27

(b)

....................

893

821,239

Camelot

Return

Merger

Sub,

Inc.,

8.75%,

08/01/28

(b)

....................

277

228,304

CRH

Finland

Services

OYJ,

0.88%,

11/05/23

(d)

EUR

1,670

1,594,375

JELD-WEN,

Inc.,

6.25%,

05/15/25

(b)

.....

USD

243

228,420

Masonite

International

Corp.,

5.38%,

02/01/28

(b)

23

20,344

New

Enterprise

Stone

&

Lime

Co.,

Inc.,

5.25%,

07/15/28

(b)

....................

111

91,744

SRM

Escrow

Issuer

LLC,

6.00%,

11/01/28

(b)

1,244

1,011,049

Standard

Industries,

Inc.,

4.75%,

01/15/28

(b)

1,367

1,154,951

5,150,426

Capital

Markets

—

3.2%

AG

TTMT

Escrow

Issuer

LLC,

8.63%,

09/30/27

(b)

....................

192

180,480

Bank

of

New

York

Mellon

Corp.

(The)

(a)

(SOFR

6

Month

+

0.57%),

3.43%,

06/13/25

11,830

11,526,062

(SOFR

6

Month

+

1.35%),

4.41%,

07/24/26

9,675

9,452,687

Blackstone

Private

Credit

Fund

3.25%,

03/15/27

.................

15,000

12,417,748

4.00%,

01/15/29

.................

8,995

7,205,446

Credit

Suisse

Group

AG,

(EUAMDB01

+

3.50%),

3.25%,

04/02/26

(a)(d)

.........

EUR

5,600

5,195,579

Deutsche

Bank

AG

(a)

(SOFR

6

Month

+

1.13%),

1.45%,

04/01/25

USD

7,780

7,157,702

(EURIBOR

3

Month

+

1.60%),

1.00%,

11/19/25

(d)

...................

EUR

2,700

2,435,222

(SOFR

6

Month

+

3.19%),

6.12%,

07/14/26

USD

9,670

9,391,297

(SOFR

6

Month

+

1.32%),

2.55%,

01/07/28

13,645

11,077,561

(EURIBOR

3

Month

+

1.38%),

1.88%,

02/23/28

(d)

...................

EUR

3,400

2,833,617

Goldman

Sachs

Group,

Inc.

(The)

(a)

(SOFR

6

Month

+

0.54%),

0.63%,

11/17/23

USD

4,735

4,706,353

(SOFR

6

Month

+

0.51%),

0.66%,

09/10/24

4,800

4,569,141

(SOFR

6

Month

+

0.80%),

1.43%,

03/09/27

7,500

6,447,826

(SOFR

6

Month

+

0.91%),

1.95%,

10/21/27

2,905

2,484,249

(SOFR

6

Month

+

1.11%),

2.64%,

02/24/28

12,845

11,144,824

(SOFR

6

Month

+

1.85%),

3.62%,

03/15/28

5,825

5,301,044

Intercontinental

Exchange,

Inc.,

4.00%,

09/15/27

.....................

9,358

8,882,922

Morgan

Stanley

(a)

(SOFR

6

Month

+

0.47%),

0.56%,

11/10/23

10,000

9,945,137

(SOFR

6

Month

+

0.46%),

0.53%,

01/25/24

20,515

20,180,653

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

90

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

(SOFR

6

Month

+

0.62%),

0.73%,

04/05/24

USD

10,725

$

10,466,104

(SOFR

6

Month

+

0.51%),

0.79%,

01/22/25

8,300

7,775,088

(SOFR

6

Month

+

1.00%),

2.48%,

01/21/28

9,310

8,136,939

OWL

Rock

Core

Income

Corp.,

7.75%,

09/16/27

(b)

....................

162

159,540

SURA

Asset

Management

SA,

4.88%,

04/17/24

(b)

....................

1,089

1,058,236

UBS

AG,

0.75%,

04/21/23

(d)

..........

EUR

4,405

4,281,944

UBS

Group

AG

(a)

(EUR

Swap

Annual

1

Year

+

0.55%),

0.25%,

01/29/26

(d)

..............

2,640

2,363,018

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.05%),

4.70%,

08/05/27

(b)

..............

USD

16,145

15,305,486

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.85%),

1.49%,

08/10/27

(b)

..............

7,780

6,535,811

Volvo

Treasury

AB,

0.00%,

02/11/23

(d)

....

EUR

940

913,687

209,531,403

Chemicals

—

1.1%

Air

Products

&

Chemicals,

Inc.,

1.50%,

10/15/25

.....................

USD

865

786,067

Alpek

SAB

de

CV,

3.25%,

02/25/31

(b)

.....

200

147,350

Arkema

SA,

0.13%,

10/14/26

(d)

.........

EUR

800

681,381

Axalta

Coating

Systems

LLC

(b)

4.75%,

06/15/27

.................

USD

870

775,028

3.38%,

02/15/29

.................

727

569,931

BASF

SE

(d)

2.00%,

12/05/22

.................

EUR

4,520

4,433,459

0.10%,

06/05/23

.................

3,500

3,369,598

Celanese

US

Holdings

LLC,

5.90%,

07/05/24

USD

22,503

22,191,095

Covestro

AG,

0.88%,

02/03/26

(d)

........

EUR

1,430

1,262,143

Element

Solutions,

Inc.,

3.88%,

09/01/28

(b)

.

USD

2,291

1,844,713

Equate

Petrochemical

BV,

4.25%,

11/03/26

(b)

552

520,191

Gates

Global

LLC,

6.25%,

01/15/26

(b)

.....

252

231,840

GCP

Applied

Technologies,

Inc.,

5.50%,

04/15/26

(b)

....................

1,571

1,592,601

Herens

Holdco

SARL,

4.75%,

05/15/28

(b)

..

496

396,800

International

Flavors

&

Fragrances,

Inc.,

1.23%,

10/01/25

(b)

....................

26,705

23,402,410

LYB

International

Finance

III

LLC,

1.25%,

10/01/25

.....................

3,841

3,374,991

NOVA

Chemicals

Corp.,

4.88%,

06/01/24

(b)

.

231

217,052

Sasol

Financing

USA

LLC

4.38%,

09/18/26

.................

391

342,809

5.50%,

03/18/31

.................

669

500,412

SCIL

IV

LLC,

5.38%,

11/01/26

(b)

........

330

254,925

Sherwin-Williams

Co.

(The),

4.25%,

08/08/25

2,630

2,567,040

WR

Grace

Holdings

LLC,

4.88%,

06/15/27

(b)

1,218

1,047,029

70,508,865

Commercial

Services

&

Supplies

—

0.1%

ADT

Security

Corp.

(The),

4.13%,

06/15/23

.

246

243,725

Allied

Universal

Holdco

LLC

(b)

6.63%,

07/15/26

.................

1,160

1,033,850

4.63%,

06/01/28

.................

1,691

1,295,120

APX

Group,

Inc.,

6.75%,

02/15/27

(b)

......

482

450,269

Aramark

Services,

Inc.

(b)

5.00%,

04/01/25

.................

414

395,393

6.38%,

05/01/25

.................

583

571,340

5.00%,

02/01/28

.................

437

389,240

Brink's

Co.

(The),

5.50%,

07/15/25

(b)

.....

40

37,860

Clean

Harbors,

Inc.,

4.88%,

07/15/27

(b)

....

546

497,706

Garda

World

Security

Corp.,

4.63%,

02/15/27

(b)

240

205,799

GFL

Environmental,

Inc.

(b)

3.75%,

08/01/25

.................

181

165,615

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

5.13%,

12/15/26

.................

USD

1,109

$

1,032,751

4.00%,

08/01/28

.................

707

589,270

3.50%,

09/01/28

.................

2

1,687

IAA,

Inc.,

5.50%,

06/15/27

(b)

..........

425

387,813

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(b)

....................

201

172,122

Prime

Security

Services

Borrower

LLC

(b)

5.25%,

04/15/24

.................

179

172,735

5.75%,

04/15/26

.................

503

473,293

3.38%,

08/31/27

.................

221

185,677

6.25%,

01/15/28

.................

185

157,874

8,459,139

Communications

Equipment

—

0.0%

(b)

Avaya,

Inc.,

6.13%,

09/15/28

..........

589

293,028

CommScope

Technologies

LLC,

6.00%,

06/15/25

.....................

212

188,351

CommScope,

Inc.

6.00%,

03/01/26

.................

668

615,041

8.25%,

03/01/27

.................

36

29,745

Viasat,

Inc.,

5.63%,

04/15/27

..........

433

360,243

1,486,408

Construction

&

Engineering

—

0.1%

Arcosa,

Inc.,

4.38%,

04/15/29

(b)

........

487

413,950

Cellnex

Finance

Co.

SA,

2.25%,

04/12/26

(d)

.

EUR

2,300

2,031,724

Heathrow

Funding

Ltd.,

1.50%,

10/12/25

(d)

.

6,045

5,461,446

Mexico

City

Airport

Trust,

4.25%,

10/31/26

(b)

USD

1,580

1,390,400

9,297,520

Construction

Materials

—

0.0%

Holcim

Finance

Luxembourg

SA,

0.13%,

07/19/27

(d)

....................

EUR

1,900

1,556,432

Consumer

Finance

—

2.7%

AerCap

Ireland

Capital

DAC

2.88%,

08/14/24

.................

USD

9,600

9,027,992

2.45%,

10/29/26

.................

10,210

8,613,225

American

Express

Co.,

2.55%,

03/04/27

...

13,000

11,579,218

Capital

One

Financial

Corp.

(a)

(SOFR

3

Month

+

0.69%),

3.68%,

12/06/24

10,000

9,773,300

(SOFR

6

Month

+

1.29%),

2.64%,

03/03/26

17,510

16,269,453

(SOFR

6

Month

+

0.86%),

1.88%,

11/02/27

7,010

5,952,433

(SOFR

6

Month

+

2.06%),

4.93%,

05/10/28

11,725

11,170,846

FCA

Bank

SpA

(d)

0.50%,

09/18/23

.................

EUR

2,474

2,360,447

0.13%,

11/16/23

.................

810

764,921

0.00%,

04/16/24

.................

1,250

1,159,965

Ford

Motor

Credit

Co.

LLC

3.35%,

11/01/22

.................

USD

357

356,497

3.37%,

11/17/23

.................

7,087

6,856,176

5.13%,

06/16/25

.................

643

606,741

4.13%,

08/04/25

.................

370

335,794

3.38%,

11/13/25

.................

221

195,255

2.70%,

08/10/26

.................

2,860

2,372,055

4.27%,

01/09/27

.................

408

357,000

4.95%,

05/28/27

.................

400

357,112

4.13%,

08/17/27

.................

200

172,100

3.82%,

11/02/27

.................

400

336,000

2.90%,

02/16/28

.................

627

492,803

5.11%,

05/03/29

.................

848

735,810

General

Motors

Financial

Co.,

Inc.

4.00%,

01/15/25

.................

3,800

3,650,605

0.85%,

02/26/26

(d)

................

EUR

6,700

5,793,977

2.35%,

02/26/27

.................

USD

11,500

9,757,864

John

Deere

Capital

Corp.,

4.05%,

09/08/25

.

6,710

6,601,322

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

91

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Consumer

Finance

(continued)

Navient

Corp.

7.25%,

09/25/23

.................

USD

38

$

37,852

6.13%,

03/25/24

.................

181

176,249

6.75%,

06/15/26

.................

146

132,524

OneMain

Finance

Corp.

6.88%,

03/15/25

.................

370

347,745

7.13%,

03/15/26

.................

250

225,350

3.50%,

01/15/27

.................

325

253,166

6.63%,

01/15/28

.................

147

126,126

SLM

Corp.,

3.13%,

11/02/26

..........

210

173,832

Synchrony

Financial

4.88%,

06/13/25

.................

8,078

7,792,871

4.50%,

07/23/25

.................

12,244

11,677,642

Toyota

Motor

Credit

Corp.,

4.40%,

09/20/24

.

16,925

16,817,967

Toyota

Motor

Finance

Netherlands

BV,

0.00%,

10/27/25

(d)

....................

EUR

1,960

1,733,875

Volkswagen

Bank

GmbH

(d)

1.88%,

01/31/24

.................

7,000

6,691,654

2.50%,

07/31/26

.................

2,300

2,116,253

Volkswagen

Financial

Services

AG,

0.88%,

01/31/28

(d)

....................

2,270

1,861,040

Volkswagen

Leasing

GmbH

(d)

1.00%,

02/16/23

.................

9,800

9,563,978

0.38%,

07/20/26

.................

1,020

872,002

176,249,037

Containers

&

Packaging

—

0.5%

Ardagh

Metal

Packaging

Finance

USA

LLC

(b)

6.00%,

06/15/27

.................

USD

1,649

1,552,869

3.25%,

09/01/28

.................

200

163,192

Ball

Corp.,

5.25%,

07/01/25

..........

12,214

11,936,620

Canpack

SA,

3.13%,

11/01/25

(b)

........

471

414,186

Clydesdale

Acquisition

Holdings,

Inc.,

6.63%,

04/15/29

(b)

....................

696

633,318

Crown

Americas

LLC,

4.75%,

02/01/26

...

566

527,167

Crown

Cork

&

Seal

Co.,

Inc.,

7.38%,

12/15/26

165

165,000

Graphic

Packaging

International

LLC

4.88%,

11/15/22

.................

389

388,038

3.50%,

03/15/28

(b)

................

188

159,860

Klabin

Austria

GmbH,

3.20%,

01/12/31

(b)

...

409

297,547

LABL,

Inc.,

5.88%,

11/01/28

(b)

.........

233

188,707

Mauser

Packaging

Solutions

Holding

Co.,

5.50%,

04/15/24

(b)

...............

516

490,200

SAN

Miguel

Industrias

Pet

SA,

3.50%,

08/02/28

(b)

....................

957

772,777

Sealed

Air

Corp.

(b)

5.13%,

12/01/24

.................

5,330

5,143,450

4.00%,

12/01/27

.................

496

429,214

SIG

Combibloc

PurchaseCo

SARL,

2.13%,

06/18/25

(d)

....................

EUR

1,295

1,171,439

Silgan

Holdings,

Inc.,

4.13%,

02/01/28

....

USD

41

36,367

Sonoco

Products

Co.,

2.25%,

02/01/27

...

6,640

5,880,657

Trivium

Packaging

Finance

BV,

5.50%,

08/15/26

(b)(c)

...................

1,570

1,404,160

31,754,768

Distributors

—

0.0%

American

Builders

&

Contractors

Supply

Co.,

Inc.,

4.00%,

01/15/28

(b)

............

24

20,995

Diversified

Consumer

Services

—

0.0%

(b)

Graham

Holdings

Co.,

5.75%,

06/01/26

...

275

266,665

Sotheby's,

7.38%,

10/15/27

...........

1,067

980,029

1,246,694

Diversified

Financial

Services

—

0.3%

Jefferies

Finance

LLC,

5.00%,

08/15/28

(b)

..

396

292,050

LSEGA

Financing

plc,

1.38%,

04/06/26

(b)

..

11,120

9,742,703

Security

Par

(000)

Par

(000)

Value

Diversified

Financial

Services

(continued)

MPH

Acquisition

Holdings

LLC,

5.50%,

09/01/28

(b)

....................

USD

201

$

165,912

NTT

Finance

Corp.,

4.37%,

07/27/27

(b)

....

4,175

4,049,435

Operadora

de

Servicios

Mega

SA

de

CV

Sofom

ER,

8.25%,

02/11/25

(b)

............

286

167,721

Sabre

GLBL,

Inc.

(b)

9.25%,

04/15/25

.................

190

181,908

7.38%,

09/01/25

.................

270

241,820

Shift4

Payments

LLC,

4.63%,

11/01/26

(b)

...

480

437,700

Siemens

Financieringsmaatschappij

NV,

0.38%,

09/06/23

(d)

...............

EUR

5,710

5,477,952

20,757,201

Diversified

Telecommunication

Services

—

1.0%

Altice

France

SA

(b)

8.13%,

02/01/27

.................

USD

842

752,537

5.50%,

01/15/28

.................

1,240

981,944

5.13%,

01/15/29

.................

404

298,047

AT&T,

Inc.

1.05%,

09/05/23

.................

EUR

3,815

3,667,680

1.70%,

03/25/26

.................

USD

20,165

17,932,514

CCO

Holdings

LLC

(b)

5.13%,

05/01/27

.................

847

764,417

5.00%,

02/01/28

.................

1,233

1,063,166

5.38%,

06/01/29

.................

1,980

1,733,134

6.38%,

09/01/29

.................

858

787,730

Consolidated

Communications,

Inc.,

6.50%,

10/01/28

(b)

....................

461

344,597

Frontier

Communications

Holdings

LLC

(b)

5.88%,

10/15/27

.................

448

401,511

5.00%,

05/01/28

.................

853

732,045

Iliad

Holding

SASU

(b)

6.50%,

10/15/26

.................

773

675,911

7.00%,

10/15/28

.................

871

746,203

Level

3

Financing,

Inc.

(b)

3.40%,

03/01/27

.................

152

127,300

4.63%,

09/15/27

.................

178

147,309

4.25%,

07/01/28

.................

472

368,165

3.63%,

01/15/29

.................

17

12,587

Lumen

Technologies,

Inc.

Series

W,

6.75%,

12/01/23

..........

459

467,969

Series

Y,

7.50%,

04/01/24

..........

479

493,370

5.13%,

12/15/26

(b)

................

896

770,927

4.00%,

02/15/27

(b)

................

1,123

943,072

4.50%,

01/15/29

(b)

................

111

77,978

Sprint

Capital

Corp.,

6.88%,

11/15/28

.....

1,623

1,667,633

Switch

Ltd.,

3.75%,

09/15/28

(b)

.........

789

784,069

Telecom

Italia

SpA,

5.30%,

05/30/24

(b)

....

936

883,762

Verizon

Communications,

Inc.,

2.10%,

03/22/28

27,460

23,182,099

Virgin

Media

Secured

Finance

plc,

5.50%,

05/15/29

(b)

....................

733

627,564

Zayo

Group

Holdings,

Inc.,

4.00%,

03/01/27

(b)

3,411

2,737,157

64,172,397

Electric

Utilities

—

1.1%

AES

Panama

Generation

Holdings

SRL,

4.38%,

05/31/30

(d)

...............

308

242,550

Alliant

Energy

Finance

LLC,

3.75%,

06/15/23

(b)

8,085

7,982,237

Edison

International,

4.70%,

08/15/25

....

12,000

11,625,782

Enel

Finance

International

NV,

0.00%,

06/17/24

(d)

....................

EUR

5,190

4,828,114

ESB

Finance

DAC,

3.49%,

01/12/24

(d)

....

2,185

2,148,562

Eversource

Energy,

2.90%,

03/01/27

.....

USD

9,700

8,802,363

Exelon

Corp.,

2.75%,

03/15/27

(b)

........

3,455

3,095,474

FirstEnergy

Corp.,

Series

B,

4.40%,

07/15/27

(c)

1,561

1,448,421

Kallpa

Generacion

SA,

4.88%,

05/24/26

(d)

..

441

405,389

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

92

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

NextEra

Energy

Operating

Partners

LP,

4.25%,

07/15/24

(b)

....................

USD

281

$

269,093

NRG

Energy,

Inc.

6.63%,

01/15/27

.................

493

482,778

5.75%,

01/15/28

.................

45

41,530

5.25%,

06/15/29

(b)

................

26

22,750

Pacific

Gas

&

Electric

Co.,

3.45%,

07/01/25

.

4,820

4,483,244

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(b)

....................

551

477,689

Southern

Co.

(The),

4.48%,

08/01/24

(c)

....

13,550

13,379,593

Texas

Electric

Market

Stabilization

Funding

N

LLC,

Series

A-1,

4.27%,

08/01/34

(b)

....

5,823

5,589,780

Virginia

Electric

&

Power

Co.,

Series

B,

3.75%,

05/15/27

.....................

5,695

5,376,033

Vistra

Operations

Co.

LLC,

5.63%,

02/15/27

(b)

688

644,140

71,345,522

Electrical

Equipment

—

0.1%

Schneider

Electric

SE,

0.25%,

09/09/24

(d)

..

EUR

2,900

2,715,888

Sensata

Technologies

BV

(b)

5.00%,

10/01/25

.................

USD

550

524,738

4.00%,

04/15/29

.................

414

342,581

Vertiv

Group

Corp.,

4.13%,

11/15/28

(b)

....

775

623,875

4,207,082

Electronic

Equipment,

Instruments

&

Components

—

0.3%

Amphenol

Technologies

Holding

GmbH,

0.75%,

05/04/26

(d)

....................

EUR

2,645

2,354,046

CDW

LLC,

4.13%,

05/01/25

..........

USD

16,000

15,118,372

17,472,418

Energy

Equipment

&

Services

—

0.0%

Archrock

Partners

LP

(b)

6.88%,

04/01/27

.................

925

828,412

6.25%,

04/01/28

.................

388

341,050

Halliburton

Co.,

3.80%,

11/15/25

.......

158

152,168

Nabors

Industries,

Inc.,

7.38%,

05/15/27

(b)

..

562

518,698

USA

Compression

Partners

LP

6.88%,

04/01/26

.................

1,314

1,208,880

6.88%,

09/01/27

.................

88

79,977

Weatherford

International

Ltd.

(b)

11.00%,

12/01/24

................

14

14,245

6.50%,

09/15/28

.................

123

110,700

3,254,130

Entertainment

—

0.2%

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

(b)

....................

484

360,580

Live

Nation

Entertainment,

Inc.

(b)

4.88%,

11/01/24

.................

65

62,878

6.50%,

05/15/27

.................

1,193

1,147,964

4.75%,

10/15/27

.................

272

236,146

3.75%,

01/15/28

.................

305

258,488

Netflix,

Inc.,

4.38%,

11/15/26

..........

10,000

9,440,350

Playtika

Holding

Corp.,

4.25%,

03/15/29

(b)

..

538

430,260

11,936,666

Equity

Real

Estate

Investment

Trusts

(REITs)

—

0.9%

American

Tower

Corp.

1.30%,

09/15/25

.................

2,245

1,990,965

1.60%,

04/15/26

.................

8,165

7,117,022

0.45%,

01/15/27

.................

EUR

4,705

3,905,678

0.40%,

02/15/27

.................

6,320

5,184,122

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(b)

....................

USD

245

200,883

Crown

Castle,

Inc.,

1.35%,

07/15/25

.....

11,410

10,239,277

CTR

Partnership

LP,

3.88%,

06/30/28

(b)

...

62

50,995

Digital

Dutch

Finco

BV,

0.63%,

07/15/25

(d)

..

EUR

6,335

5,559,183

Security

Par

(000)

Par

(000)

Value

Equity

Real

Estate

Investment

Trusts

(REITs)

(continued)

Equinix,

Inc.,

1.45%,

05/15/26

.........

USD

8,813

$

7,631,200

Global

Net

Lease,

Inc.,

3.75%,

12/15/27

(b)

..

392

305,768

HAT

Holdings

I

LLC,

3.38%,

06/15/26

(b)

...

238

190,995

Healthpeak

Properties,

Inc.,

1.35%,

02/01/27

4,255

3,603,259

MPT

Operating

Partnership

LP

5.25%,

08/01/26

.................

482

441,354

5.00%,

10/15/27

.................

722

623,988

Nationwide

Health

Properties,

Inc.,

6.59%,

07/07/38

.....................

1,400

1,306,014

RHP

Hotel

Properties

LP

4.75%,

10/15/27

.................

587

510,690

4.50%,

02/15/29

(b)

................

297

246,427

RLJ

Lodging

Trust

LP,

3.75%,

07/01/26

(b)

..

166

141,774

SBA

Communications

Corp.

3.88%,

02/15/27

.................

1,092

968,506

3.13%,

02/01/29

.................

141

113,402

Simon

International

Finance

SCA,

1.38%,

11/18/22

(d)

....................

EUR

2,510

2,455,168

Trust

Fibra

Uno,

5.25%,

01/30/26

(b)

......

USD

745

674,365

Uniti

Group

LP,

4.75%,

04/15/28

(b)

.......

332

262,270

VICI

Properties

LP,

4.38%,

05/15/25

.....

8,105

7,717,095

61,440,400

Food

&

Staples

Retailing

—

0.3%

(b)

7-Eleven,

Inc.,

0.80%,

02/10/24

........

21,469

20,294,937

Albertsons

Cos.,

Inc.

4.63%,

01/15/27

.................

772

690,030

5.88%,

02/15/28

.................

173

159,593

3.50%,

03/15/29

.................

275

221,650

Performance

Food

Group,

Inc.,

5.50%,

10/15/27

.....................

462

419,879

US

Foods,

Inc.

6.25%,

04/15/25

.................

452

443,999

4.75%,

02/15/29

.................

54

46,224

22,276,312

Food

Products

—

0.2%

Chobani

LLC,

4.63%,

11/15/28

(b)

........

692

588,574

Darling

Ingredients,

Inc.,

5.25%,

04/15/27

(b)

.

355

334,821

General

Mills,

Inc.,

0.45%,

01/15/26

.....

EUR

1,420

1,259,532

Kraft

Heinz

Foods

Co.,

3.88%,

05/15/27

...

USD

2,190

2,046,729

Lamb

Weston

Holdings,

Inc.,

4.88%,

05/15/28

(b)

706

640,434

Louis

Dreyfus

Co.

Finance

BV,

2.38%,

11/27/25

(d)

....................

EUR

3,500

3,231,362

Post

Holdings,

Inc.,

5.75%,

03/01/27

(b)

....

USD

88

83,935

Simmons

Foods,

Inc.,

4.63%,

03/01/29

(b)

..

500

408,750

Viterra

Finance

BV,

0.38%,

09/24/25

(d)

....

EUR

3,350

2,842,698

11,436,835

Gas

Utilities

—

0.1%

ONE

Gas,

Inc.,

1.10%,

03/11/24

........

USD

6,577

6,296,226

Promigas

SA

ESP

3.75%,

10/16/29

(d)

................

442

342,357

3.75%,

10/16/29

(b)

................

1,329

1,029,393

Redexis

Gas

Finance

BV,

1.88%,

05/28/25

(d)

EUR

900

828,838

Snam

SpA,

0.00%,

08/15/25

(d)

.........

1,400

1,235,085

9,731,899

Health

Care

Equipment

&

Supplies

—

0.3%

American

Medical

Systems

Europe

BV,

1.38%,

03/08/28

.....................

3,191

2,764,149

Avantor

Funding,

Inc.,

4.63%,

07/15/28

(b)

..

USD

1,229

1,093,743

Becton

Dickinson

and

Co.

1.40%,

05/24/23

.................

EUR

1,325

1,287,310

0.03%,

08/13/25

.................

2,460

2,191,064

Becton

Dickinson

Euro

Finance

SARL,

1.21%,

06/04/26

.....................

1,935

1,740,263

Medline

Borrower

LP,

3.88%,

04/01/29

(b)

...

USD

925

741,563

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

93

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Health

Care

Equipment

&

Supplies

(continued)

Medtronic

Global

Holdings

SCA

0.00%,

12/02/22

.................

EUR

400

$

391,447

0.38%,

03/07/23

.................

4,330

4,215,346

0.00%,

10/15/25

.................

2,380

2,117,643

Teleflex,

Inc.

4.63%,

11/15/27

.................

USD

20

18,018

4.25%,

06/01/28

(b)

................

579

503,597

17,064,143

Health

Care

Providers

&

Services

—

0.8%

Centene

Corp.,

2.45%,

07/15/28

........

2,138

1,740,802

Community

Health

Systems,

Inc.

(b)

8.00%,

03/15/26

.................

160

138,526

5.63%,

03/15/27

.................

180

138,546

CVS

Health

Corp.,

3.63%,

04/01/27

......

4,946

4,625,878

Encompass

Health

Corp.,

4.50%,

02/01/28

.

804

688,620

Fresenius

Finance

Ireland

plc,

0.00%,

10/01/25

(d)

....................

EUR

2,830

2,483,041

HCA,

Inc.

5.38%,

02/01/25

.................

USD

14,000

13,834,441

5.25%,

04/15/25

.................

7,000

6,856,600

5.88%,

02/15/26

.................

11,013

10,864,397

5.38%,

09/01/26

.................

3,827

3,707,608

Legacy

LifePoint

Health

LLC,

6.75%,

04/15/25

(b)

....................

478

452,291

ModivCare,

Inc.,

5.88%,

11/15/25

(b)

......

178

164,279

Molina

Healthcare,

Inc.,

4.38%,

06/15/28

(b)

.

721

650,702

PeaceHealth

Obligated

Group,

Series

2020,

1.38%,

11/15/25

................

2,185

1,947,936

Prime

Healthcare

Services,

Inc.,

7.25%,

11/01/25

(b)

....................

557

497,150

Tenet

Healthcare

Corp.

4.63%,

07/15/24

.................

124

119,905

4.63%,

09/01/24

(b)

................

277

268,092

4.88%,

01/01/26

(b)

................

722

670,933

6.25%,

02/01/27

(b)

................

169

157,702

4.63%,

06/15/28

(b)

................

372

325,116

50,332,565

Health

Care

Technology

—

0.0%

IQVIA,

Inc.,

5.00%,

05/15/27

(b)

.........

1,057

985,652

Hotels,

Restaurants

&

Leisure

—

0.2%

1011778

BC

ULC

(b)

3.88%,

01/15/28

.................

206

179,263

4.38%,

01/15/28

.................

607

525,966

Booking

Holdings,

Inc.,

0.10%,

03/08/25

...

EUR

3,610

3,275,456

Boyne

USA,

Inc.,

4.75%,

05/15/29

(b)

.....

USD

383

320,852

Caesars

Entertainment,

Inc.,

6.25%,

07/01/25

(b)

1,999

1,926,536

Caesars

Resort

Collection

LLC,

5.75%,

07/01/25

(b)

....................

416

401,398

Carnival

Corp.

(b)

10.50%,

02/01/26

................

533

527,355

7.63%,

03/01/26

.................

65

49,400

5.75%,

03/01/27

.................

925

648,009

9.88%,

08/01/27

.................

530

519,400

4.00%,

08/01/28

.................

426

343,671

6.00%,

05/01/29

.................

289

189,749

Cedar

Fair

LP,

5.50%,

05/01/25

(b)

.......

477

458,841

Churchill

Downs,

Inc.

(b)

5.50%,

04/01/27

.................

1,170

1,082,648

4.75%,

01/15/28

.................

211

182,531

Fertitta

Entertainment

LLC,

4.63%,

01/15/29

(b)

506

418,715

Hilton

Domestic

Operating

Co.,

Inc.

(b)

5.38%,

05/01/25

.................

548

535,589

3.75%,

05/01/29

.................

134

110,655

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

Hilton

Worldwide

Finance

LLC,

4.88%,

04/01/27

.....................

USD

382

$

350,485

Life

Time,

Inc.,

5.75%,

01/15/26

(b)

.......

257

233,870

Lindblad

Expeditions

LLC,

6.75%,

02/15/27

(b)

261

229,680

Merlin

Entertainments

Ltd.,

5.75%,

06/15/26

(b)

200

186,169

MGM

Resorts

International,

5.75%,

06/15/25

237

226,494

Raptor

Acquisition

Corp.,

4.88%,

11/01/26

(b)

.

246

211,566

Royal

Caribbean

Cruises

Ltd.

(b)

9.13%,

06/15/23

.................

294

299,145

5.50%,

08/31/26

.................

310

237,150

5.38%,

07/15/27

.................

193

141,959

11.63%,

08/15/27

................

157

142,873

5.50%,

04/01/28

.................

2

1,402

8.25%,

01/15/29

.................

156

151,845

9.25%,

01/15/29

.................

240

236,485

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

(b)

366

365,846

Station

Casinos

LLC,

4.50%,

02/15/28

(b)

...

333

273,315

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(b)

.....

244

240,686

Wynn

Las

Vegas

LLC,

5.25%,

05/15/27

(b)

..

443

389,929

Wynn

Resorts

Finance

LLC,

7.75%,

04/15/25

(b)

877

856,664

16,471,597

Household

Durables

—

0.5%

Brookfield

Residential

Properties,

Inc.,

5.00%,

06/15/29

(b)

....................

571

422,694

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(b)

277

251,078

DR

Horton,

Inc.,

1.30%,

10/15/26

.......

4,140

3,465,685

KB

Home,

7.63%,

05/15/23

...........

15,000

14,982,750

Meritage

Homes

Corp.,

5.13%,

06/06/27

...

507

449,318

Newell

Brands,

Inc.,

4.45%,

04/01/26

(c)

....

8,000

7,360,000

Picasso

Finance

Sub,

Inc.,

6.13%,

06/15/25

(b)

847

830,162

PulteGroup,

Inc.,

5.00%,

01/15/27

.......

781

757,407

Taylor

Morrison

Communities,

Inc.,

5.88%,

06/15/27

(b)

....................

207

192,769

Tempur

Sealy

International,

Inc.,

4.00%,

04/15/29

(b)

....................

604

475,967

TRI

Pointe

Homes,

Inc.,

5.25%,

06/01/27

..

565

488,555

29,676,385

Household

Products

—

0.0%

(b)

Energizer

Holdings,

Inc.,

6.50%,

12/31/27

..

165

146,469

Kimberly-Clark

de

Mexico

SAB

de

CV,

2.43%,

07/01/31

.....................

305

240,950

387,419

Independent

Power

and

Renewable

Electricity

Producers

—

0.1%

(b)

Alexander

Funding

Trust,

1.84%,

11/15/23

.

8,395

7,855,428

Clearway

Energy

Operating

LLC,

4.75%,

03/15/28

.....................

422

375,749

Colbun

SA,

3.15%,

01/19/32

..........

765

582,978

8,814,155

Insurance

—

0.4%

Alliant

Holdings

Intermediate

LLC,

4.25%,

10/15/27

(b)

....................

2,431

2,076,506

American

International

Group,

Inc.,

1.88%,

06/21/27

.....................

EUR

3,300

2,920,677

AmWINS

Group,

Inc.,

4.88%,

06/30/29

(b)

...

USD

407

337,836

Aon

Corp.,

2.85%,

05/28/27

..........

6,710

6,019,044

E.ON

International

Finance

BV

(d)

0.75%,

11/30/22

.................

EUR

1,150

1,125,279

1.00%,

04/13/25

.................

300

277,384

Met

Tower

Global

Funding,

3.70%,

06/13/25

(b)

USD

12,000

11,569,370

NFP

Corp.,

4.88%,

08/15/28

(b)

.........

1,518

1,295,332

25,621,428

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

94

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Interactive

Media

&

Services

—

0.3%

(b)

Meta

Platforms,

Inc.,

3.50%,

08/15/27

....

USD

21,455

$

20,062,852

Twitter,

Inc.,

3.88%,

12/15/27

..........

507

475,427

20,538,279

Internet

&

Direct

Marketing

Retail

—

0.0%

(b)

ANGI

Group

LLC,

3.88%,

08/15/28

......

216

152,349

Go

Daddy

Operating

Co.

LLC,

3.50%,

03/01/29

159

130,043

Match

Group

Holdings

II

LLC,

4.63%,

06/01/28

859

750,551

1,032,943

IT

Services

—

0.4%

Acuris

Finance

US,

Inc.,

5.00%,

05/01/28

(b)

.

507

423,345

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(b)

590

502,975

Block,

Inc.,

2.75%,

06/01/26

..........

1,286

1,105,268

Booz

Allen

Hamilton,

Inc.,

3.88%,

09/01/28

(b)

646

555,730

CA

Magnum

Holdings,

5.38%,

10/31/26

(b)

..

434

362,390

Cablevision

Lightpath

LLC,

3.88%,

09/15/27

(b)

400

334,591

Capgemini

SE,

0.63%,

06/23/25

(d)

.......

EUR

2,400

2,194,246

Gartner,

Inc.,

4.50%,

07/01/28

(b)

........

USD

404

361,257

Global

Payments,

Inc.

1.20%,

03/01/26

.................

20,200

17,385,029

2.15%,

01/15/27

.................

2,570

2,199,132

ION

Trading

Technologies

SARL,

5.75%,

05/15/28

(b)

....................

269

219,235

Northwest

Fiber

LLC,

4.75%,

04/30/27

(b)

...

588

511,560

Tempo

Acquisition

LLC,

5.75%,

06/01/25

(b)

.

141

137,396

Twilio,

Inc.,

3.63%,

03/15/29

..........

633

511,147

VeriSign,

Inc.,

5.25%,

04/01/25

........

1,523

1,518,298

28,321,599

Life

Sciences

Tools

&

Services

—

0.1%

Charles

River

Laboratories

International,

Inc.,

4.25%,

05/01/28

(b)

...............

319

277,808

Danaher

Corp.,

1.70%,

03/30/24

.......

EUR

1,600

1,534,758

PRA

Health

Sciences,

Inc.,

2.88%,

07/15/26

(b)

USD

776

682,761

Syneos

Health,

Inc.,

3.63%,

01/15/29

(b)

...

1,225

975,443

Thermo

Fisher

Scientific,

Inc.,

2.00%,

04/15/25

EUR

2,550

2,431,341

5,902,111

Machinery

—

0.3%

Daimler

Trucks

Finance

North

America

LLC,

2.00%,

12/14/26

(b)

...............

USD

2,740

2,357,859

EnPro

Industries,

Inc.,

5.75%,

10/15/26

...

156

150,150

Highland

Holdings

SARL,

0.32%,

12/15/26

.

EUR

1,610

1,358,991

Illinois

Tool

Works,

Inc.,

0.25%,

12/05/24

..

5,360

4,935,940

Parker-Hannifin

Corp.,

2.70%,

06/14/24

...

USD

2,115

2,036,083

Stevens

Holding

Co.,

Inc.,

6.13%,

10/01/26

(b)

372

363,556

Titan

International,

Inc.,

7.00%,

04/30/28

..

59

53,531

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(b)

1,223

1,039,807

Traton

Finance

Luxembourg

SA

(d)

0.00%,

06/14/24

.................

EUR

2,400

2,209,243

0.13%,

11/10/24

.................

2,200

1,996,851

0.13%,

03/24/25

.................

4,100

3,655,200

Wabash

National

Corp.,

4.50%,

10/15/28

(b)

.

USD

195

151,165

20,308,376

Media

—

0.8%

Altice

Financing

SA,

5.00%,

01/15/28

(b)

....

1,287

991,350

AMC

Networks,

Inc.,

5.00%,

04/01/24

....

304

290,056

Charter

Communications

Operating

LLC,

4.91%,

07/23/25

................

17,480

17,045,780

Clear

Channel

International

BV,

6.63%,

08/01/25

(b)

....................

1,103

1,024,917

Clear

Channel

Outdoor

Holdings,

Inc.,

5.13%,

08/15/27

(b)

....................

1,929

1,629,498

CSC

Holdings

LLC

5.25%,

06/01/24

.................

1,879

1,738,075

5.38%,

02/01/28

(b)

................

759

662,228

Security

Par

(000)

Par

(000)

Value

Media

(continued)

Directv

Financing

LLC,

5.88%,

08/15/27

(b)

..

USD

584

$

503,472

DISH

DBS

Corp.

(b)

5.25%,

12/01/26

.................

1,303

1,067,479

5.75%,

12/01/28

.................

412

311,365

GCI

LLC,

4.75%,

10/15/28

(b)

..........

150

124,538

Informa

plc

(d)

1.50%,

07/05/23

.................

EUR

2,951

2,853,576

2.13%,

10/06/25

.................

9,855

8,936,080

LCPR

Senior

Secured

Financing

DAC,

6.75%,

10/15/27

(b)

....................

USD

1,088

903,040

MMS

USA

Holdings,

Inc.,

0.63%,

06/13/25

(d)

EUR

3,300

2,991,318

Outfront

Media

Capital

LLC,

5.00%,

08/15/27

(b)

USD

834

728,541

Radiate

Holdco

LLC,

4.50%,

09/15/26

(b)

...

1,630

1,336,975

Sinclair

Television

Group,

Inc.,

5.13%,

02/15/27

(b)

....................

542

448,292

Sirius

XM

Radio,

Inc.

(b)

3.13%,

09/01/26

.................

48

42,155

5.00%,

08/01/27

.................

950

871,625

4.00%,

07/15/28

.................

577

490,785

Telenet

Finance

Luxembourg

Notes

SARL,

5.50%,

03/01/28

(b)

...............

400

346,908

Univision

Communications,

Inc.,

6.63%,

06/01/27

(b)

....................

537

506,774

Videotron

Ltd.,

5.13%,

04/15/27

(b)

.......

581

533,268

Virgin

Media

Vendor

Financing

Notes

IV

DAC,

5.00%,

07/15/28

(b)

...............

1,015

820,881

WPP

Finance

2013,

3.00%,

11/20/23

(d)

....

EUR

3,960

3,854,762

Ziggo

Bond

Co.

BV,

6.00%,

01/15/27

(b)

....

USD

741

618,735

51,672,473

Metals

&

Mining

—

0.2%

AngloGold

Ashanti

Holdings

plc,

3.75%,

10/01/30

.....................

960

746,280

Antofagasta

plc,

2.38%,

10/14/30

(b)

......

505

369,913

Arconic

Corp.

(b)

6.00%,

05/15/25

.................

330

317,647

6.13%,

02/15/28

.................

414

365,698

Big

River

Steel

LLC,

6.63%,

01/31/29

(b)

...

997

917,619

Carpenter

Technology

Corp.,

6.38%,

07/15/28

40

37,096

Constellium

SE

(b)

5.88%,

02/15/26

.................

600

550,500

5.63%,

06/15/28

.................

755

619,216

3.75%,

04/15/29

.................

664

484,774

Freeport

Indonesia

PT,

4.76%,

04/14/27

(d)

..

701

634,405

Fresnillo

plc,

4.25%,

10/02/50

(b)

........

1,130

774,968

Industrias

Penoles

SAB

de

CV,

4.75%,

08/06/50

(b)

....................

385

273,783

Kaiser

Aluminum

Corp.,

4.63%,

03/01/28

(b)

.

935

762,884

New

Gold,

Inc.,

7.50%,

07/15/27

(b)

......

353

278,870

Nexa

Resources

SA,

5.38%,

05/04/27

(b)

...

509

451,356

Novelis

Corp.,

3.25%,

11/15/26

(b)

.......

1,899

1,585,152

Nucor

Corp.,

2.00%,

06/01/25

.........

1,245

1,149,135

Steel

Dynamics,

Inc.,

2.40%,

06/15/25

....

765

707,261

11,026,557

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.

(b)

5.50%,

11/01/23

.................

273

268,222

4.38%,

01/15/27

.................

94

80,134

348,356

Multi-Utilities

—

0.2%

E.ON

SE,

0.88%,

01/08/25

(d)

..........

EUR

1,120

1,040,174

Engie

SA,

0.38%,

02/28/23

(d)

..........

3,600

3,501,027

National

Grid

Electricity

Transmission

plc,

0.19%,

01/20/25

(d)

...............

1,490

1,362,180

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

95

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Multi-Utilities

(continued)

National

Grid

North

America,

Inc.,

0.41%,

01/20/26

(d)

....................

EUR

2,120

$

1,864,991

Sempra

Energy,

3.30%,

04/01/25

.......

USD

6,745

6,419,316

14,187,688

Oil,

Gas

&

Consumable

Fuels

—

1.8%

Aethon

United

BR

LP,

8.25%,

02/15/26

(b)

...

1,113

1,075,536

Antero

Midstream

Partners

LP

(b)

7.88%,

05/15/26

.................

319

320,595

5.75%,

03/01/27

.................

434

401,392

5.75%,

01/15/28

.................

48

43,680

Antero

Resources

Corp.,

8.38%,

07/15/26

(b)

.

136

143,652

Ascent

Resources

Utica

Holdings

LLC,

5.88%,

06/30/29

(b)

....................

1,097

976,330

Azure

Power

Energy

Ltd.,

3.58%,

08/19/26

(b)

372

277,289

Blue

Racer

Midstream

LLC,

7.63%,

12/15/25

(b)

484

464,640

Buckeye

Partners

LP

(b)

4.13%,

03/01/25

.................

383

350,541

4.50%,

03/01/28

.................

349

296,650

Callon

Petroleum

Co.

6.38%,

07/01/26

.................

138

124,350

8.00%,

08/01/28

(b)

................

809

746,303

Chesapeake

Energy

Corp.

(b)

5.50%,

02/01/26

.................

119

113,942

6.75%,

04/15/29

.................

750

718,965

Civitas

Resources,

Inc.,

5.00%,

10/15/26

(b)

.

122

110,835

CNX

Resources

Corp.,

6.00%,

01/15/29

(b)

..

18

16,425

Colgate

Energy

Partners

III

LLC

(b)

7.75%,

02/15/26

.................

559

548,674

5.88%,

07/01/29

.................

561

500,765

Comstock

Resources,

Inc.,

6.75%,

03/01/29

(b)

895

825,465

Crescent

Energy

Finance

LLC,

7.25%,

05/01/26

(b)

....................

1,307

1,174,235

CrownRock

LP

(b)

5.63%,

10/15/25

.................

1,921

1,839,108

5.00%,

05/01/29

.................

40

35,292

DCP

Midstream

Operating

LP

5.63%,

07/15/27

.................

37

35,737

5.13%,

05/15/29

.................

570

534,106

DT

Midstream,

Inc.,

4.13%,

06/15/29

(b)

....

831

702,195

Earthstone

Energy

Holdings

LLC,

8.00%,

04/15/27

(b)

....................

406

382,655

EIG

Pearl

Holdings

SARL

(b)

3.55%,

08/31/36

.................

648

515,160

4.39%,

11/30/46

.................

728

509,600

Enbridge,

Inc.

2.50%,

01/15/25

.................

1,710

1,605,489

2.50%,

02/14/25

.................

9,460

8,885,227

Energy

Transfer

LP

3.45%,

01/15/23

.................

8,080

8,037,778

3.60%,

02/01/23

.................

2,900

2,887,644

4.25%,

03/15/23

.................

35,795

35,699,659

5.88%,

01/15/24

.................

10,825

10,847,092

4.50%,

04/15/24

.................

1,433

1,410,426

EnLink

Midstream

LLC

5.63%,

01/15/28

(b)

................

418

390,830

5.38%,

06/01/29

.................

397

363,255

EnLink

Midstream

Partners

LP

4.15%,

06/01/25

.................

152

141,094

4.85%,

07/15/26

.................

570

523,479

EQM

Midstream

Partners

LP

6.00%,

07/01/25

(b)

................

259

239,479

4.13%,

12/01/26

.................

193

163,504

6.50%,

07/01/27

(b)

................

371

342,837

GNL

Quintero

SA,

4.63%,

07/31/29

(d)

.....

803

732,546

Gulfport

Energy

Corp.,

8.00%,

05/17/26

(b)

..

41

40,298

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Hilcorp

Energy

I

LP,

5.75%,

02/01/29

(b)

....

USD

28

$

24,479

India

Cleantech

Energy,

4.70%,

08/10/26

(b)

.

421

320,275

India

Green

Energy

Holdings,

5.38%,

04/29/24

(b)

....................

500

467,500

Leviathan

Bond

Ltd.,

5.75%,

06/30/23

(b)(d)

..

975

959,785

Magnolia

Oil

&

Gas

Operating

LLC,

6.00%,

08/01/26

(b)

....................

32

30,668

Matador

Resources

Co.,

5.88%,

09/15/26

..

540

520,922

New

Fortress

Energy,

Inc.

(b)

6.75%,

09/15/25

.................

1,108

1,049,498

6.50%,

09/30/26

.................

789

728,957

NGL

Energy

Operating

LLC,

7.50%,

02/01/26

(b)

279

248,201

Northern

Oil

&

Gas,

Inc.,

8.13%,

03/01/28

(b)

.

816

765,000

NuStar

Logistics

LP,

5.75%,

10/01/25

.....

534

494,895

Occidental

Petroleum

Corp.

6.95%,

07/01/24

.................

174

178,785

8.00%,

07/15/25

.................

34

36,040

5.88%,

09/01/25

.................

110

110,333

5.55%,

03/15/26

.................

796

796,907

8.50%,

07/15/27

.................

1,361

1,456,542

Parkland

Corp.,

5.88%,

07/15/27

(b)

......

283

262,341

PDC

Energy,

Inc.,

5.75%,

05/15/26

......

235

217,408

Permian

Resources

Operating

LLC,

6.88%,

04/01/27

(b)

....................

606

586,278

Pioneer

Natural

Resources

Co.

0.55%,

05/15/23

.................

4,255

4,151,859

1.13%,

01/15/26

.................

6,380

5,577,846

Rockies

Express

Pipeline

LLC,

4.95%,

07/15/29

(b)

....................

88

75,486

Sabine

Pass

Liquefaction

LLC,

5.75%,

05/15/24

.....................

5,967

5,988,846

SK

Battery

America,

Inc.,

2.13%,

01/26/26

(d)

1,234

1,072,877

SM

Energy

Co.

5.63%,

06/01/25

.................

65

62,400

6.75%,

09/15/26

.................

179

172,287

6.63%,

01/15/27

.................

10

9,599

6.50%,

07/15/28

.................

169

160,605

Southwestern

Energy

Co.,

5.70%,

01/23/25

(c)

9

8,812

Sunoco

LP,

6.00%,

04/15/27

..........

54

51,492

Tallgrass

Energy

Partners

LP,

6.00%,

03/01/27

(b)

....................

46

41,734

Tap

Rock

Resources

LLC,

7.00%,

10/01/26

(b)

1,144

1,045,816

Venture

Global

Calcasieu

Pass

LLC,

3.88%,

08/15/29

(b)

....................

2,268

1,945,672

Western

Midstream

Operating

LP

3.95%,

06/01/25

.................

532

500,080

4.65%,

07/01/26

.................

426

398,310

4.75%,

08/15/28

.................

710

646,100

117,259,389

Paper

&

Forest

Products

—

0.0%

Suzano

Austria

GmbH,

Series

DM3N,

3.13%,

01/15/32

.....................

404

289,112

Personal

Products

—

0.0%

Coty,

Inc.,

4.75%,

01/15/29

(b)

..........

20

16,920

GSK

Consumer

Healthcare

Capital

NL

BV,

1.25%,

03/29/26

(d)

...............

EUR

1,130

1,016,680

GSK

Consumer

Healthcare

Capital

UK

plc,

3.13%,

03/24/25

(b)

...............

USD

2,500

2,359,866

3,393,466

Pharmaceuticals

—

0.2%

Bayer

AG,

0.05%,

01/12/25

(d)

..........

EUR

2,900

2,631,258

Bayer

Capital

Corp.

BV,

1.50%,

06/26/26

(d)

.

2,600

2,338,931

Catalent

Pharma

Solutions,

Inc.,

3.13%,

02/15/29

(b)

....................

USD

609

469,691

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

96

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Pharmaceuticals

(continued)

Cheplapharm

Arzneimittel

GmbH,

5.50%,

01/15/28

(b)

....................

USD

400

$

330,000

Jazz

Securities

DAC,

4.38%,

01/15/29

(b)

...

554

478,518

Merck

Financial

Services

GmbH,

0.01%,

12/15/23

(d)

....................

EUR

4,500

4,266,716

Organon

&

Co.,

4.13%,

04/30/28

(b)

......

USD

1,254

1,072,170

Teva

Pharmaceutical

Finance

Netherlands

III

BV

7.13%,

01/31/25

.................

210

204,068

4.75%,

05/09/27

.................

200

168,987

11,960,339

Professional

Services

—

0.0%

CoreLogic,

Inc.,

4.50%,

05/01/28

(b)

......

408

277,440

Korn

Ferry,

4.63%,

12/15/27

(b)

.........

420

370,902

Wolters

Kluwer

NV,

3.00%,

09/23/26

(d)

....

EUR

1,050

1,015,500

1,663,842

Real

Estate

Management

&

Development

—

0.2%

Arabian

Centres

Sukuk

II

Ltd.,

5.63%,

10/07/26

(b)

....................

USD

625

557,344

China

Aoyuan

Group

Ltd.

(d)(f)(g)

6.35%,

02/08/24

.................

1,000

62,500

5.98%,

08/18/25

.................

1,000

62,375

6.20%,

03/24/26

.................

834

52,125

Fantasia

Holdings

Group

Co.

Ltd.

(d)(f)(g)

10.88%,

01/09/23

................

1,167

99,195

11.88%,

06/01/23

................

667

56,695

9.25%,

07/28/23

.................

667

56,695

9.88%,

10/19/23

.................

333

28,305

Heimstaden

Bostad

Treasury

BV,

0.25%,

10/13/24

(d)

....................

EUR

3,070

2,712,199

Howard

Hughes

Corp.

(The),

5.38%,

08/01/28

(b)

USD

476

395,080

MAF

Sukuk

Ltd.

(d)

4.64%,

05/14/29

.................

824

786,817

3.93%,

02/28/30

.................

431

392,291

Modern

Land

China

Co.

Ltd.,

9.80%,

04/11/23

(d)

(f)(g)

........................

667

103,385

Redco

Properties

Group

Ltd.,

9.90%,

02/17/24

(d)

....................

200

30,912

Redsun

Properties

Group

Ltd.,

10.50%,

10/03/22

(d)(f)(g)

..................

333

23,310

Ronshine

China

Holdings

Ltd.,

7.10%,

01/25/25

(d)(f)(g)

..................

667

36,685

Unique

Pub

Finance

Co.

plc

(The),

Series

M,

7.39%,

03/28/24

(c)(d)

..............

GBP

2,999

3,323,302

Vonovia

Finance

BV,

0.13%,

04/06/23

(d)

...

EUR

4,100

3,957,361

Yuzhou

Group

Holdings

Co.

Ltd.

(d)(f)(g)

7.70%,

02/20/25

.................

USD

634

39,625

8.30%,

05/27/25

.................

834

52,125

7.38%,

01/13/26

.................

833

52,062

Zhenro

Properties

Group

Ltd.,

7.35%,

02/05/25

(d)(f)(g)

..................

333

13,320

12,893,708

Road

&

Rail

—

0.5%

Albion

Financing

1

SARL,

6.13%,

10/15/26

(b)

241

203,749

Canadian

Pacific

Railway

Co.,

1.75%,

12/02/26

4,720

4,132,957

Penske

Truck

Leasing

Co.

LP

(b)

1.20%,

11/15/25

.................

3,970

3,449,238

1.70%,

06/15/26

.................

4,295

3,693,692

Ryder

System,

Inc.,

2.85%,

03/01/27

.....

7,525

6,745,500

SMBC

Aviation

Capital

Finance

DAC

(b)

1.90%,

10/15/26

.................

12,895

10,740,827

2.30%,

06/15/28

.................

2,835

2,236,366

Uber

Technologies,

Inc.

(b)

7.50%,

05/15/25

.................

443

441,892

Security

Par

(000)

Par

(000)

Value

Road

&

Rail

(continued)

8.00%,

11/01/26

.................

USD

166

$

165,738

7.50%,

09/15/27

.................

901

882,980

6.25%,

01/15/28

.................

1,228

1,142,040

4.50%,

08/15/29

.................

104

87,425

33,922,404

Semiconductors

&

Semiconductor

Equipment

—

0.4%

Broadcom

Corp.,

3.88%,

01/15/27

......

11,000

10,118,670

Broadcom,

Inc.,

3.15%,

11/15/25

.......

7,195

6,753,534

Entegris

Escrow

Corp.,

4.75%,

04/15/29

(b)

..

1,207

1,063,155

Intel

Corp.,

3.75%,

08/05/27

..........

4,120

3,911,627

NXP

BV,

2.70%,

05/01/25

............

3,801

3,516,638

Synaptics,

Inc.,

4.00%,

06/15/29

(b)

.......

335

269,693

25,633,317

Software

—

1.1%

Boxer

Parent

Co.,

Inc.,

7.13%,

10/02/25

(b)

..

1,726

1,691,609

Camelot

Finance

SA,

4.50%,

11/01/26

(b)

...

529

478,645

Central

Parent,

Inc.,

7.25%,

06/15/29

(b)

....

659

626,508

Change

Healthcare

Holdings

LLC,

5.75%,

03/01/25

(b)

....................

1,183

1,175,837

Clarivate

Science

Holdings

Corp.,

3.88%,

07/01/28

(b)

....................

1,541

1,271,017

Consensus

Cloud

Solutions,

Inc.

(b)

6.00%,

10/15/26

.................

98

86,357

6.50%,

10/15/28

.................

131

111,202

Fair

Isaac

Corp.,

4.00%,

06/15/28

(b)

......

239

203,647

Helios

Software

Holdings,

Inc.,

4.63%,

05/01/28

(b)

....................

200

149,400

MicroStrategy,

Inc.,

6.13%,

06/15/28

(b)

....

405

333,700

NCR

Corp.,

5.00%,

10/01/28

(b)

.........

428

336,741

NortonLifeLock,

Inc.,

6.75%,

09/30/27

(b)

...

422

404,922

Open

Text

Corp.,

3.88%,

02/15/28

(b)

.....

650

537,563

Oracle

Corp.

1.65%,

03/25/26

.................

24,635

21,585,231

2.65%,

07/15/26

.................

567

510,281

Picard

Midco,

Inc.,

6.50%,

03/31/29

(b)

.....

1,837

1,551,714

PTC,

Inc.,

3.63%,

02/15/25

(b)

..........

570

530,971

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(b)

1,164

1,061,794

Veritas

US,

Inc.,

7.50%,

09/01/25

(b)

......

567

434,234

VMware,

Inc.

1.00%,

08/15/24

.................

8,634

7,990,534

1.40%,

08/15/26

.................

21,340

18,250,374

3.90%,

08/21/27

.................

6,715

6,186,115

Workday,

Inc.,

3.50%,

04/01/27

........

3,500

3,237,474

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(b)

777

633,985

69,379,855

Specialty

Retail

—

0.2%

eG

Global

Finance

plc

(b)

6.75%,

02/07/25

.................

643

579,999

8.50%,

10/30/25

.................

200

174,917

Home

Depot,

Inc.

(The),

4.00%,

09/15/25

..

1,355

1,333,453

Lowe's

Cos.,

Inc.,

3.35%,

04/01/27

......

8,015

7,423,012

Penske

Automotive

Group,

Inc.,

3.50%,

09/01/25

.....................

344

314,900

PetSmart,

Inc.,

4.75%,

02/15/28

(b)

.......

250

213,947

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

(b)

...............

60

49,648

SRS

Distribution,

Inc.,

4.63%,

07/01/28

(b)

..

1,251

1,074,597

Staples,

Inc.,

7.50%,

04/15/26

(b)

........

443

371,947

11,536,420

Technology

Hardware,

Storage

&

Peripherals

—

0.2%

Dell

International

LLC,

4.00%,

07/15/24

...

7,388

7,251,993

Litigation

Systems,

Inc.,

4.00%,

10/30/27

(e)

.

3,312

3,154,868

10,406,861

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

97

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Textiles,

Apparel

&

Luxury

Goods

—

0.0%

(b)

Crocs,

Inc.,

4.25%,

03/15/29

..........

USD

293

$

232,935

William

Carter

Co.

(The),

5.63%,

03/15/27

..

306

286,092

519,027

Thrifts

&

Mortgage

Finance

—

0.2%

BPCE

SA

0.63%,

04/28/25

(d)

................

EUR

1,700

1,551,732

(SOFR

6

Month

+

1.09%),

2.05%,

10/19/27

(a)(b)

..................

USD

4,545

3,826,648

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(b)

...

649

620,243

Home

Point

Capital,

Inc.,

5.00%,

02/01/26

(b)

.

381

238,601

Ladder

Capital

Finance

Holdings

LLLP,

4.25%,

02/01/27

(b)

....................

247

198,886

Nationstar

Mortgage

Holdings,

Inc.,

6.00%,

01/15/27

(b)

....................

401

342,354

RMIT

Cash

Management

LLC,

Series

2021-3,

3.88%,

10/17/33

(e)

...............

4,470

4,023,000

Rocket

Mortgage

LLC,

2.88%,

10/15/26

(b)

..

576

472,320

11,273,784

Tobacco

—

0.8%

BAT

Capital

Corp.

1.13%,

11/16/23

(d)

................

EUR

2,350

2,239,690

3.22%,

08/15/24

.................

USD

16,545

15,920,545

2.79%,

09/06/24

.................

29,510

28,054,912

3.56%,

08/15/27

.................

3,490

3,064,821

BAT

International

Finance

plc,

0.88%,

10/13/23

(d)

....................

EUR

2,124

2,026,472

Philip

Morris

International,

Inc.

2.88%,

03/03/26

.................

1,550

1,465,098

0.13%,

08/03/26

.................

730

618,003

53,389,541

Trading

Companies

&

Distributors

—

0.4%

Air

Lease

Corp.

3.88%,

07/03/23

.................

USD

4,500

4,461,438

1.88%,

08/15/26

.................

5,265

4,461,980

Aviation

Capital

Group

LLC

(b)

1.95%,

01/30/26

.................

5,785

4,855,977

1.95%,

09/20/26

.................

8,480

6,867,620

Beacon

Roofing

Supply,

Inc.,

4.13%,

05/15/29

(b)

49

39,686

Fortress

Transportation

&

Infrastructure

Investors

LLC

(b)

6.50%,

10/01/25

.................

150

140,912

9.75%,

08/01/27

.................

89

87,025

5.50%,

05/01/28

.................

198

158,372

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(b)

....

283

254,700

Imola

Merger

Corp.,

4.75%,

05/15/29

(b)

....

657

554,278

WESCO

Distribution,

Inc.

(b)

7.13%,

06/15/25

.................

1,471

1,471,809

7.25%,

06/15/28

.................

22

21,548

23,375,345

Transportation

Infrastructure

—

0.1%

ASTM

SpA,

1.00%,

11/25/26

(d)

.........

EUR

4,240

3,598,171

Wireless

Telecommunication

Services

—

0.4%

Connect

Finco

SARL,

6.75%,

10/01/26

(b)

...

USD

1,227

1,073,075

Millicom

International

Cellular

SA

(b)

5.13%,

01/15/28

.................

361

298,825

4.50%,

04/27/31

.................

497

356,598

Sprint

Corp.,

7.63%,

03/01/26

.........

174

179,974

Sprint

Spectrum

Co.

LLC,

4.74%,

03/20/25

(b)

5,069

4,995,705

T-Mobile

USA,

Inc.

1.50%,

02/15/26

.................

7,130

6,258,071

2.25%,

02/15/26

.................

1,818

1,626,710

Security

Par

(000)

Par

(000)

Value

Wireless

Telecommunication

Services

(continued)

3.75%,

04/15/27

.................

USD

13,200

$

12,181,499

26,970,457

Total

Corporate

Bonds

—

32.9%

(Cost:

$2,409,594,363)

...........................

2,163,108,865

Floating

Rate

Loan

Interests

Chemicals

—

0.0%

Lummus

Technology

Holdings

V

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 06/30/27

(a)

................

35

31,263

Total

Floating

Rate

Loan

Interests

—

0.0%

(Cost:

$33,936)

................................

31,263

Foreign

Agency

Obligations

Canada

—

0.6%

(b)

CPPIB

Capital,

Inc.,

0.50%

,

09/16/24

.....

22,650

20,992,662

OMERS

Finance

Trust,

1.10%

,

03/26/26

...

17,380

15,415,891

36,408,553

Chile

—

0.0%

(d)

Corp.

Nacional

del

Cobre

de

Chile,

3.63%

,

08/01/27

......................

763

695,427

Empresa

Nacional

del

Petroleo,

4.38%

,

10/30/24

......................

1,240

1,210,550

1,905,977

Colombia

—

0.0%

Ecopetrol

SA

5.38%,

06/26/26

.................

868

784,618

4.63%,

11/02/31

.................

645

449,081

1,233,699

Dominican

Republic

—

0.0%

Banco

de

Reservas

de

la

Republica

Dominicana,

7.00%

,

02/01/23

(d)

.......

958

956,803

Italy

—

0.0%

ACEA

SpA,

0.00%

,

09/28/25

(d)

..........

EUR

1,885

1,660,235

Mexico

—

0.1%

Comision

Federal

de

Electricidad

4.88%,

01/15/24

(d)

................

USD

594

580,635

4.69%,

05/15/29

(b)

................

1,004

836,646

Petroleos

Mexicanos

6.88%,

08/04/26

.................

1,720

1,542,754

8.75%,

06/02/29

(b)

................

584

495,284

5.95%,

01/28/31

.................

1,977

1,330,719

6.70%,

02/16/32

.................

1,693

1,182,391

5,968,429

Oman

—

0.0%

OQ

SAOC,

5.13%

,

05/06/28

(b)

..........

1,309

1,170,573

Panama

—

0.0%

Aeropuerto

Internacional

de

Tocumen

SA

(b)

4.00%,

08/11/41

.................

759

560,853

5.13%,

08/11/61

.................

490

349,064

Banco

Latinoamericano

de

Comercio

Exterior

SA,

2.38%

,

09/14/25

(b)

.............

648

588,060

1,497,977

Qatar

—

0.0%

Qatar

Energy,

2.25%

,

07/12/31

(b)

........

212

170,660

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

98

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Saudi

Arabia

—

0.1%

Saudi

Arabian

Oil

Co.,

2.88%

,

04/16/24

(b)

...

USD

3,245

$

3,135,481

Total

Foreign

Agency

Obligations

—

0.8%

(Cost:

$61,081,480)

..............................

54,108,387

Foreign

Government

Obligations

Bahrain

—

0.0%

Kingdom

of

Bahrain,

7.38%

,

05/14/30

(d)

....

581

550,970

Chile

—

0.0%

Republic

of

Chile,

3.24%

,

02/06/28

.......

756

680,306

Colombia

—

0.1%

Republic

of

Colombia

4.00%,

02/26/24

.................

384

373,752

8.13%,

05/21/24

.................

1,122

1,143,949

4.50%,

01/28/26

.................

714

653,667

3.88%,

04/25/27

.................

1,411

1,195,646

4.50%,

03/15/29

.................

669

547,869

3.25%,

04/22/32

.................

548

368,804

4,283,687

Dominican

Republic

—

0.0%

Dominican

Republic

Government

Bond

5.50%,

02/22/29

(b)

................

640

548,120

5.50%,

02/22/29

(d)

................

632

541,268

4.50%,

01/30/30

(b)

................

281

220,374

4.88%,

09/23/32

(b)

................

365

272,336

1,582,098

Egypt

—

0.0%

Arab

Republic

of

Egypt

(b)

5.25%,

10/06/25

.................

695

539,494

6.38%,

04/11/31

.................

EUR

688

391,079

930,573

Guatemala

—

0.0%

Republic

of

Guatemala

5.25%,

08/10/29

(b)

................

USD

393

352,914

3.70%,

10/07/33

(d)

................

630

453,128

806,042

Hungary

—

0.0%

Hungary

Government

Bond

5.38%,

03/25/24

.................

680

667,590

5.25%,

06/16/29

(b)

................

717

646,555

1,314,145

Indonesia

—

0.0%

Perusahaan

Penerbit

SBSN

Indonesia

III,

4.40%

,

06/06/27

(b)

................

549

527,040

Republic

of

Indonesia

4.10%,

04/24/28

.................

290

271,114

4.75%,

02/11/29

.................

450

432,612

1,230,766

Ivory

Coast

—

0.0%

Republic

of

Cote

d'Ivoire,

6.38%

,

03/03/28

(d)

.

672

595,896

Mexico

—

0.1%

United

Mexican

States

4.13%,

01/21/26

.................

595

576,555

4.50%,

04/22/29

.................

244

225,944

3.25%,

04/16/30

.................

616

513,128

2.66%,

05/24/31

.................

1,513

1,160,471

4.75%,

04/27/32

.................

831

745,822

4.88%,

05/19/33

.................

200

175,800

3,397,720

Security

Par

(000)

Par

(000)

Value

Morocco

—

0.0%

Kingdom

of

Morocco

(b)

2.38%,

12/15/27

.................

USD

882

$

721,751

3.00%,

12/15/32

.................

844

588,321

1,310,072

Nigeria

—

0.0%

Federal

Republic

of

Nigeria,

8.38%

,

03/24/29

(b)

542

384,820

Oman

—

0.0%

Oman

Government

Bond

(d)

4.75%,

06/15/26

.................

450

417,375

7.38%,

10/28/32

.................

699

694,631

1,112,006

Panama

—

0.1%

Republic

of

Panama

3.88%,

03/17/28

.................

222

201,160

3.16%,

01/23/30

.................

995

807,691

2.25%,

09/29/32

.................

1,126

787,707

3.30%,

01/19/33

.................

314

242,251

2,038,809

Paraguay

—

0.1%

Republic

of

Paraguay

5.00%,

04/15/26

(d)

................

1,269

1,219,271

4.95%,

04/28/31

(b)

................

1,221

1,083,866

2,303,137

Peru

—

0.0%

Republic

of

Peru

2.39%,

01/23/26

.................

700

634,288

4.13%,

08/25/27

.................

239

225,750

2.78%,

01/23/31

.................

522

413,294

1.86%,

12/01/32

.................

370

259,069

1,532,401

Philippines

—

0.0%

Republic

of

Philippines,

3.75%

,

01/14/29

...

901

840,282

Romania

—

0.0%

Romania

Government

Bond

5.25%,

11/25/27

(b)

................

558

504,990

2.88%,

03/11/29

(d)

................

EUR

433

324,186

2.50%,

02/08/30

(d)

................

455

318,361

1,147,537

Saudi

Arabia

—

0.0%

Kingdom

of

Saudi

Arabia,

4.00%

,

04/17/25

(d)

USD

431

420,764

South

Africa

—

0.1%

Republic

of

South

Africa

4.30%,

10/12/28

.................

1,316

1,092,115

4.85%,

09/30/29

.................

957

787,013

5.88%,

04/20/32

.................

955

787,875

2,667,003

Ukraine

—

0.0%

Ukraine

Government

Bond

(f)(g)

8.99%,

02/01/26

(d)

................

330

68,475

7.25%,

03/15/35

(b)

................

200

36,500

104,975

Uruguay

—

0.0%

Oriental

Republic

of

Uruguay,

4.38%

,

01/23/31

558

533,704

Total

Foreign

Government

Obligations

—

0.5%

(Cost:

$34,965,857)

..............................

29,767,713

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

99

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

2.6%

Angel

Oak

Mortgage

Trust

(b)

Series

2022-1,

Class

A1,

2.88%,

12/25/66

(c)

USD

6,089

$

5,261,909

Series

2022-2,

Class

A1,

3.35%,

01/25/67

(a)

7,182

6,443,840

Angel

Oak

Mortgage

Trust

I

LLC,

Series

2019-

1,

Class

A2,

4.02%,

11/25/48

(a)(b)

.......

59

58,219

Arroyo

Mortgage

Trust,

Series

2022-2,

Class

A1,

4.95%,

07/25/57

(b)(c)

............

5,127

4,932,204

Atlas

Funding

plc

(a)

Series

2021-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.70%),

3.90%,

07/25/58

(d)

...................

GBP

125

137,057

Series

2021-1,

Class

D,

(Sterling

Overnight

Index

Average

+

2.25%),

4.45%,

07/25/58

(d)

...................

110

119,786

Banc

of

America

Mortgage

Trust,

Series

2003-

J,

Class

2A1,

2.49%,

11/25/33

(a)

.......

USD

142

129,569

Barley

Hill

No.

2

plc,

Series

2,

Class

C,

(Sterling

Overnight

Index

Average

+

1.70%),

3.89%,

08/27/58

(a)(d)

...............

GBP

520

556,526

Bear

Stearns

ARM

Trust,

Series

2004-5,

Class

2A,

3.17%,

07/25/34

(a)

.............

USD

217

200,302

BlackRock

Capital

Finance

LP,

Series

1997-R2,

Class

AP,

0.00%,

12/25/35

(a)(b)(e)(h)

......

16

14,139

Canada

Square

Funding

plc

(a)

Series

2021-2,

Class

C,

(Sterling

Overnight

Index

Average

+

1.60%),

3.79%,

06/17/58

(d)

...................

GBP

102

108,856

Series

6,

Class

C,

(Sterling

Overnight

Index

Average

+

1.45%),

3.65%,

01/17/59

(d)

.

318

332,460

Series

6,

Class

D,

(Sterling

Overnight

Index

Average

+

1.85%),

4.05%,

01/17/59

(d)

.

178

180,197

Cascade

MH

Asset

Trust,

Series

2021-MH1,

Class

A1,

1.75%,

02/25/46

(b)

.........

USD

2,409

2,077,191

Chase

Home

Lending

Mortgage

Trust

(a)(b)

Series

2019-ATR2,

Class

A11,

(LIBOR

USD

1

Month

+

0.90%),

3.98%,

07/25/49

..

773

741,141

Series

2019-ATR2,

Class

A3,

3.50%,

07/25/49

....................

1,654

1,488,911

CHL

Mortgage

Pass-Through

Trust

Series

2004-29,

Class

1A1,

(LIBOR

USD

1

Month

+

0.54%),

3.62%,

02/25/35

(a)

..

198

179,961

Series

2005-17,

Class

1A6,

5.50%,

09/25/35

254

233,345

Series

2005-HYB8,

Class

2A1,

3.23%,

12/20/35

(a)

...................

537

494,895

CMF

plc

(a)

Series

2020-1,

Class

B,

(Sterling

Overnight

Index

Average

+

1.00%),

3.19%,

01/16/57

(d)

...................

GBP

220

242,987

Series

2020-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.25%),

3.44%,

01/16/57

(d)

...................

105

115,707

COLT

Mortgage

Loan

Trust,

Series

2022-3,

Class

A1,

3.90%,

02/25/67

(a)(b)

........

USD

4,755

4,335,353

Credit

Suisse

Mortgage

Capital

Certificates,

Series

2022-ATH1,

Class

A1A,

2.87%,

01/25/67

(a)(b)

....................

7,046

6,525,111

CSMC

Trust

(a)(b)

Series

2013-HYB1,

Class

B2,

3.31%,

04/25/43

....................

2,409

2,378,127

Series

2013-HYB1,

Class

B4,

3.31%,

04/25/43

....................

2,141

2,086,361

Series

2015-1,

Class

A1,

2.50%,

01/25/45

6,030

5,271,961

Series

2019-RP10,

Class

A1,

2.94%,

12/26/59

....................

2,957

2,876,708

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

Dutch

Property

Finance

BV

(a)

Series

2021-1,

Class

B,

(EURIBOR

3

Month

+

1.10%),

1.31%,

07/28/58

(d)

.......

EUR

740

$

689,983

Series

2021-2,

Class

B,

(EURIBOR

3

Month

+

0.80%),

1.01%,

04/28/59

(d)

.......

820

759,873

Series

2021-2,

Class

C,

(EURIBOR

3

Month

+

1.05%),

1.26%,

04/28/59

(d)

.......

503

457,720

Finsbury

Square,

Series

2021-1GRX,

Class

C,

(Sterling

Overnight

Index

Average

+

1.25%),

3.44%,

12/16/67

(a)(d)

...............

GBP

1,045

1,098,864

Finsbury

Square

plc

(a)

Series

2020-1A,

Class

C,

(Sterling

Overnight

Index

Average

+

1.35%),

3.54%,

03/16/70

(b)

...................

225

249,222

Series

2021-2X,

Class

C,

(Sterling

Overnight

Index

Average

+

1.40%),

3.59%,

12/16/71

(d)

...................

371

389,412

Series

2021-2X,

Class

D,

(Sterling

Overnight

Index

Average

+

1.70%),

3.89%,

12/16/71

(d)

...................

200

204,034

Gemgarto

plc,

Series

2021-1X,

Class

C,

(Sterling

Overnight

Index

Average

+

1.30%),

3.49%,

12/16/67

(a)(d)

...............

218

230,831

GS

Mortgage-Backed

Securities

Corp.

Trust

(a)(b)

Series

2019-PJ1,

Class

B1,

4.08%,

08/25/49

USD

2,249

2,109,082

Series

2020-PJ4,

Class

A2,

3.00%,

01/25/51

3,721

3,106,423

Series

2022-PJ2,

Class

A4,

2.50%,

06/25/52

12,867

10,218,060

Harben

Finance

(a)

Series

2017-1RX,

Class

C,

(Sterling

Overnight

Index

Average

+

1.15%),

3.34%,

09/28/55

(d)

..............

GBP

741

771,575

Series

2017-1RX,

Class

D,

(Sterling

Overnight

Index

Average

+

1.50%),

3.69%,

09/28/55

(d)

..............

441

450,956

Homeward

Opportunities

Fund

Trust,

Series

2022-1,

Class

A1,

5.08%,

07/25/67

(b)(c)

...

USD

3,087

2,995,992

Hops

Hill

No.

1

plc

(a)

Series

1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.85%),

4.04%,

05/27/54

(d)

.

GBP

200

218,616

Series

1,

Class

D,

(Sterling

Overnight

Index

Average

+

2.35%),

4.54%,

05/27/54

(d)

.

100

108,129

JPMorgan

Mortgage

Trust

(a)(b)

Series

2016-2,

Class

A1,

3.72%,

06/25/46

USD

2,791

2,576,316

Series

2020-7,

Class

A3,

3.00%,

01/25/51

2,817

2,358,047

Series

2020-LTV1,

Class

A11,

(LIBOR

USD

1

Month

+

1.00%),

3.44%,

06/25/50

..

562

557,333

Series

2022-INV3,

Class

A3B,

3.00%,

09/25/52

....................

8,440

6,914,393

Series

2022-LTV1,

Class

A1,

3.25%,

07/25/52

....................

5,093

4,307,482

Jubilee

Place,

Series

3,

Class

C,

(EURIBOR

3

Month

+

1.60%),

1.60%,

01/17/59

(a)(d)

...

EUR

201

184,241

Lanebrook

Mortgage

Transaction

plc

(a)

Series

2020-1,

Class

C,

(Sterling

Overnight

Index

Average

+

2.25%),

4.44%,

06/12/57

(d)

...................

GBP

370

406,262

Series

2021-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.25%),

3.45%,

07/20/58

(d)

...................

158

166,700

Mello

Mortgage

Capital

Acceptance,

Series

2022-INV2,

Class

A3,

3.00%,

04/25/52

(a)(b)

USD

10,384

8,566,257

MortgageIT

Trust,

Series

2004-1,

Class

A1,

(LIBOR

USD

1

Month

+

0.78%),

3.86%,

11/25/34

(a)

.....................

459

435,662

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

100

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

Mortimer

BTL

plc,

Series

2021-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.45%),

3.64%,

06/23/53

(a)(d)

...............

GBP

111

$

117,112

New

Residential

Mortgage

Loan

Trust

(a)(b)

Series

2016-3A,

Class

A1B,

3.25%,

09/25/56

....................

USD

1,216

1,118,063

Series

2018-1A,

Class

A1A,

4.00%,

12/25/57

....................

4,489

4,267,188

Series

2020-1A,

Class

A1B,

3.50%,

10/25/59

....................

10,505

9,781,915

OBX

Trust,

Series

2022-INV3,

Class

A1,

3.00%,

02/25/52

(a)(b)

...............

4,632

3,820,897

Polaris

plc,

Series

2022-1,

Class

E,

(Sterling

Overnight

Index

Average

+

3.40%),

5.59%,

10/23/59

(a)(d)

....................

GBP

538

555,977

Residential

Mortgage

Securities

32

plc,

Series

32X,

Class

C,

(Sterling

Overnight

Index

Average

+

2.20%),

4.39%,

06/20/70

(a)(d)

..

1,025

1,116,019

RMAC

Securities

No.

1

plc,

Series

2007-

NS1X,

Class

A2A,

(Sterling

Overnight

Index

Average

+

0.27%),

2.46%,

06/12/44

(a)(d)

..

322

340,863

Seasoned

Credit

Risk

Transfer

Trust

Series

2018-2,

Class

MA,

3.50%,

11/25/57

USD

4,262

4,096,984

Series

2018-3,

Class

MA,

3.50%,

08/25/57

(a)

12,133

11,601,325

Series

2019-4,

Class

MA,

3.00%,

02/25/59

12,442

11,666,663

Sequoia

Mortgage

Trust,

Series

2017-CH1,

Class

A2,

3.50%,

08/25/47

(a)(b)

........

471

437,621

SG

Residential

Mortgage

Trust,

Series

2022-2,

Class

A1,

5.35%,

09/25/67

(b)(c)

........

2,574

2,496,435

Stanlington

No.

2

plc

(a)

Series

2,

Class

C,

(Sterling

Overnight

Index

Average

+

1.75%),

3.94%,

06/12/56

(d)

.

GBP

535

573,229

Series

2,

Class

D,

(Sterling

Overnight

Index

Average

+

2.20%),

4.39%,

06/12/56

(d)

.

329

353,418

Series

2,

Class

E,

(Sterling

Overnight

Index

Average

+

3.30%),

5.49%,

06/12/56

(d)

.

450

487,905

Starwood

Mortgage

Residential

Trust,

Series

2020-INV1,

Class

A1,

1.03%,

11/25/55

(a)(b)

USD

2,714

2,499,027

Structured

Adjustable

Rate

Mortgage

Loan

Trust,

Series

2004-13,

Class

A2,

(LIBOR

USD

1

Month

+

0.30%),

3.38%,

09/25/34

(a)

532

469,313

Together

Asset-Backed

Securitisation

plc,

Series

2021-1ST1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.25%),

3.45%,

07/12/63

(a)(d)

....................

GBP

108

114,638

Tower

Bridge

Funding

plc

(a)

Series

2020-1,

Class

C,

(Sterling

Overnight

Index

Average

+

2.45%),

4.64%,

09/20/63

(d)

...................

145

160,950

Series

2020-1,

Class

D,

(Sterling

Overnight

Index

Average

+

3.45%),

5.64%,

09/20/63

(d)

...................

120

133,208

Series

2021-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.85%),

4.04%,

07/21/64

(d)

...................

365

400,515

Series

2021-1,

Class

D,

(Sterling

Overnight

Index

Average

+

2.15%),

4.34%,

07/21/64

(d)

...................

252

272,319

Series

2021-2,

Class

C,

(Sterling

Overnight

Index

Average

+

1.50%),

3.69%,

11/20/63

(d)

...................

140

149,548

Series

2021-2,

Class

D,

(Sterling

Overnight

Index

Average

+

1.80%),

3.99%,

11/20/63

(d)

...................

169

178,001

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

Twin

Bridges

plc

(a)

Series

2020-1,

Class

C,

(Sterling

Overnight

Index

Average

+

2.25%),

4.44%,

12/12/54

(d)

...................

GBP

395

$

435,633

Series

2020-1,

Class

D,

(Sterling

Overnight

Index

Average

+

3.00%),

5.19%,

12/12/54

(d)

...................

225

247,143

Series

2021-1,

Class

C,

(Sterling

Overnight

Index

Average

+

1.60%),

3.79%,

03/12/55

(d)

...................

436

458,753

Series

2021-1,

Class

D,

(Sterling

Overnight

Index

Average

+

2.10%),

4.29%,

03/12/55

(d)

...................

220

225,858

Series

2021-2,

Class

C,

(Sterling

Overnight

Index

Average

+

1.15%),

3.34%,

09/12/55

(d)

...................

435

453,605

Series

2021-2,

Class

D,

(Sterling

Overnight

Index

Average

+

1.50%),

3.69%,

09/12/55

(d)

...................

187

191,030

Series

2022-1,

Class

D,

(Sterling

Overnight

Index

Average

+

1.70%),

3.89%,

12/01/55

(d)

...................

365

370,400

Verus

Securitization

Trust,

Series

2022-3,

Class

A1,

4.13%,

02/25/67

(b)(c)

............

USD

8,983

8,233,217

Walsh

Acceptance,

Series

1997-2,

Class

A,

(LIBOR

USD

1

Month

+

2.00%),

4.50%,

03/01/27

(a)(b)

....................

2

1,490

Wells

Fargo

Mortgage

Backed

Securities

Trust

(a)(b)

Series

2019-4,

Class

A2,

3.00%,

09/25/49

882

773,464

Series

2020-RR1,

Class

A1,

3.00%,

05/25/50

....................

1,608

1,357,327

168,011,341

Commercial

Mortgage-Backed

Securities

—

9.8%

Alen

Mortgage

Trust,

Series

2021-ACEN,

Class

A,

(LIBOR

USD

1

Month

+

1.15%),

3.97%,

04/15/34

(a)(b)

....................

8,030

7,687,985

Atom

Mortgage

Securities

DAC

(a)

Series

1X,

Class

D,

(Sterling

Overnight

Index

Average

+

1.90%),

4.10%,

07/22/31

(d)

...................

GBP

1,906

1,948,310

Series

1X,

Class

E,

(Sterling

Overnight

Index

Average

+

2.80%),

5.00%,

07/22/31

(d)

...................

2,158

2,176,432

BAMLL

Commercial

Mortgage

Securities

Trust

(a)(b)

Series

2017-SCH,

Class

AF,

(LIBOR

USD

1

Month

+

1.00%),

3.82%,

11/15/33

...

USD

3,270

3,080,084

Series

2018-DSNY,

Class

A,

(LIBOR

USD

1

Month

+

0.85%),

3.67%,

09/15/34

...

12,495

12,237,083

BANK

Series

2018-BN14,

Class

A2,

4.13%,

09/15/60

....................

3,102

3,073,308

Series

2019-BN16,

Class

A2,

3.93%,

02/15/52

....................

11,591

11,430,307

Series

2019-BN18,

Class

A2,

3.47%,

05/15/62

....................

15,479

14,991,783

BBCMS

Mortgage

Trust,

Series

2022-C16,

Class

A5,

4.60%,

06/15/55

(a)

.........

1,560

1,488,657

Bear

Stearns

Commercial

Mortgage

Securities

Trust,

Series

2005-PW10,

Class

AJ,

5.62%,

12/11/40

(a)(e)

....................

—

(i)

1

Benchmark

Mortgage

Trust,

Series

2022-B34,

Class

AM,

3.96%,

04/15/55

(a)(e)

........

4,680

4,358,016

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

101

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

BX

Commercial

Mortgage

Trust

(a)(b)

Series

2019-XL,

Class

A,

(LIBOR

USD

1

Month

+

0.92%),

3.74%,

10/15/36

...

USD

19,993

$

19,691,440

Series

2021-SOAR,

Class

A,

(LIBOR

USD

1

Month

+

0.67%),

3.49%,

06/15/38

...

12,118

11,586,876

Series

2021-VINO,

Class

A,

(LIBOR

USD

1

Month

+

0.65%),

3.47%,

05/15/38

...

6,930

6,628,269

Series

2021-XL2,

Class

A,

(LIBOR

USD

1

Month

+

0.69%),

3.51%,

10/15/38

...

14,814

14,203,507

BX

Trust

(a)(b)

Series

2021-ARIA,

Class

A,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

10/15/36

...

14,000

13,280,930

Series

2021-LBA,

Class

AJV,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

02/15/36

...

4,700

4,477,986

Series

2021-LBA,

Class

AV,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

02/15/36

...

6,280

5,983,352

Series

2021-SDMF,

Class

A,

(LIBOR

USD

1

Month

+

0.59%),

3.41%,

09/15/34

...

7,130

6,777,291

Series

2021-VIEW,

Class

A,

(LIBOR

USD

1

Month

+

1.28%),

4.10%,

06/15/36

...

3,450

3,302,863

BXP

Trust,

Series

2021-601L,

Class

D,

2.87%,

01/15/44

(a)(b)

....................

5,000

3,334,431

Cassia

SRL

(a)

Series

2022-1X,

Class

A,

(EURIBOR

3

Month

+

2.50%),

2.50%,

05/22/34

(d)

..

EUR

4,583

4,301,472

Series

2022-1X,

Class

B,

(EURIBOR

3

Month

+

3.50%),

3.50%,

05/22/34

(d)

..

2,190

2,037,155

CFCRE

Commercial

Mortgage

Trust

(b)

Series

2018-TAN,

Class

A,

4.24%,

02/15/33

USD

15,000

14,837,844

Series

2018-TAN,

Class

B,

4.69%,

02/15/33

7,905

7,761,219

Citigroup

Commercial

Mortgage

Trust

Series

2013-GC11,

Class

A3,

2.82%,

04/10/46

....................

21,591

21,479,799

Series

2015-GC31,

Class

A4,

3.76%,

06/10/48

....................

9,000

8,610,613

Series

2015-P1,

Class

A4,

3.46%,

09/15/48

13,173

12,542,792

Series

2016-P3,

Class

A2,

2.74%,

04/15/49

1,184

1,182,173

Commercial

Mortgage

Trust

Series

2013-CR13,

Class

A4,

4.19%,

11/10/46

(a)

...................

4,515

4,455,593

Series

2014-CR21,

Class

A3,

3.53%,

12/10/47

....................

15,052

14,518,858

Series

2014-UBS5,

Class

ASB,

3.55%,

09/10/47

....................

2,566

2,531,630

Series

2014-UBS6,

Class

ASB,

3.39%,

12/10/47

....................

785

770,220

Series

2015-CR22,

Class

A3,

3.21%,

03/10/48

....................

11,549

11,538,055

Series

2015-CR23,

Class

A2,

2.85%,

05/10/48

....................

2,450

2,447,276

Series

2015-CR23,

Class

A4,

3.50%,

05/10/48

....................

7,750

7,385,858

Series

2015-CR24,

Class

ASB,

3.45%,

08/10/48

....................

4,033

3,947,600

Series

2015-PC1,

Class

B,

4.43%,

07/10/50

(a)

...................

4,175

3,954,370

Credit

Suisse

Mortgage

Capital

Certificates

(b)

Series

2020-NET,

Class

A,

2.26%,

08/15/37

(e)

...................

6,977

6,401,515

Series

2021-980M,

Class

A,

2.39%,

07/15/31

....................

6,240

5,337,014

Series

2021-980M,

Class

C,

3.20%,

07/15/31

....................

3,450

2,930,517

CSAIL

Commercial

Mortgage

Trust,

Series

2015-C2,

Class

A4,

3.50%,

06/15/57

....

2,458

2,341,622

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Extended

Stay

America

Trust,

Series

2021-

ESH,

Class

A,

(LIBOR

USD

1

Month

+

1.08%),

3.90%,

07/15/38

(a)(b)

.........

USD

12,801

$

12,398,983

GS

Mortgage

Securities

Corp.

II

Series

2005-ROCK,

Class

F,

5.52%,

05/03/32

(b)

...................

2,000

1,909,833

Series

2013-GC10,

Class

A4,

2.68%,

02/10/46

....................

343

343,090

GS

Mortgage

Securities

Corp.

Trust,

Series

2021-STAR,

Class

A,

(LIBOR

USD

1

Month

+

0.95%),

3.77%,

12/15/36

(a)(b)

........

12,850

12,321,695

GS

Mortgage

Securities

Trust

Series

2011-GC5,

Class

AS,

5.21%,

08/10/44

(a)(b)

..................

5,864

5,836,467

Series

2013-GC12,

Class

A4,

3.14%,

06/10/46

....................

15,859

15,687,052

Series

2013-GC13,

Class

AAB,

3.72%,

07/10/46

(a)

...................

1,162

1,159,565

Series

2014-GC24,

Class

AAB,

3.65%,

09/10/47

....................

3,635

3,584,692

Series

2015-GS1,

Class

A3,

3.73%,

11/10/48

....................

5,900

5,607,406

Series

2019-GC38,

Class

A2,

3.87%,

02/10/52

....................

8,134

7,982,841

Haus

European

Loan

Conduit

No.

39

DAC

(a)

Series

39X,

Class

C,

(EURIBOR

3

Month

+

1.40%),

1.67%,

07/28/51

(d)

........

EUR

841

771,458

Series

39X,

Class

D,

(EURIBOR

3

Month

+

2.00%),

2.27%,

07/28/51

(d)

........

2,052

1,867,958

Hawaii

Hotel

Trust,

Series

2019-MAUI,

Class

A,

(LIBOR

USD

1

Month

+

1.15%),

3.97%,

05/15/38

(a)(b)

....................

USD

9,675

9,425,714

HONO

Mortgage

Trust,

Series

2021-LULU,

Class

D,

(LIBOR

USD

1

Month

+

2.50%),

5.32%,

10/15/36

(a)(b)

...............

2,000

1,889,283

JPMBB

Commercial

Mortgage

Securities

Trust

Series

2014-C23,

Class

ASB,

3.66%,

09/15/47

....................

2,814

2,762,142

Series

2016-C1,

Class

A5,

3.58%,

03/17/49

1,446

1,366,463

JPMCC

Commercial

Mortgage

Securities

Trust,

Series

2017-JP6,

Class

A3,

3.11%,

07/15/50

8,404

8,119,403

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

Series

2013-C16,

Class

A4,

4.17%,

12/15/46

....................

13,920

13,736,495

Series

2018-WPT,

Class

AFX,

4.25%,

07/05/33

(b)

...................

7,070

6,946,484

Series

2019-BKWD,

Class

A,

(LIBOR

USD

1

Month

+

1.00%),

4.07%,

09/15/29

(a)(b)

.

1,604

1,578,345

Series

2021-MHC,

Class

A,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

04/15/38

(a)(b)

.

3,676

3,560,147

Series

2022-OPO,

Class

B,

3.38%,

01/05/39

(b)

...................

3,405

2,892,298

Series

2022-OPO,

Class

D,

3.56%,

01/05/39

(a)(b)

..................

1,000

784,613

KNDL

Mortgage

Trust,

Series

2019-KNSQ,

Class

D,

(LIBOR

USD

1

Month

+

1.35%),

4.17%,

05/15/36

(a)(b)

...............

2,972

2,867,323

Last

Mile

Logistics

Pan

Euro

Finance

DAC

(a)

Series

1X,

Class

C,

(EURIBOR

3

Month

+

1.40%),

1.74%,

08/17/33

(d)

........

EUR

1,350

1,233,165

Series

1X,

Class

D,

(EURIBOR

3

Month

+

1.90%),

2.24%,

08/17/33

(d)

........

1,045

943,415

Last

Mile

Securities

PE

DAC

(a)

Series

2021-1X,

Class

B,

(EURIBOR

3

Month

+

1.20%),

1.20%,

08/17/31

(d)

..

939

865,499

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

102

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Series

2021-1X,

Class

C,

(EURIBOR

3

Month

+

1.60%),

1.60%,

08/17/31

(d)

..

EUR

1,061

$

967,654

Med

Trust,

Series

2021-MDLN,

Class

A,

(LIBOR

USD

1

Month

+

0.95%),

3.77%,

11/15/38

(a)(b)

....................

USD

6,980

6,700,220

MF1

Multifamily

Housing

Mortgage

Loan

Trust

(a)

(b)

Series

2021-W10,

Class

A,

(1

Month

CME

Term

SOFR

+

1.07%),

3.92%,

12/15/34

2,490

2,456,206

Series

2021-W10,

Class

B,

(1

Month

CME

Term

SOFR

+

1.37%),

4.22%,

12/15/34

2,170

2,124,190

MHC

Commercial

Mortgage

Trust,

Series

2021-MHC,

Class

A,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

04/15/38

(a)(b)

.........

12,380

11,915,161

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series

2013-C13,

Class

A4,

4.04%,

11/15/46

11,900

11,714,299

Series

2013-C9,

Class

AAB,

2.66%,

05/15/46

....................

417

415,366

Series

2014-C15,

Class

A4,

4.05%,

04/15/47

....................

16,435

16,148,254

Series

2014-C18,

Class

ASB,

3.62%,

10/15/47

....................

3,327

3,280,282

Series

2014-C19,

Class

ASB,

3.33%,

12/15/47

....................

3,383

3,321,220

Series

2015-C24,

Class

A4,

3.73%,

05/15/48

....................

15,544

14,864,166

Series

2015-C25,

Class

A5,

3.64%,

10/15/48

....................

8,717

8,302,707

Morgan

Stanley

Capital

I

Trust

Series

2018-BOP,

Class

A,

(LIBOR

USD

1

Month

+

0.85%),

3.67%,

08/15/33

(a)(b)

.

3,082

3,044,273

Series

2018-H4,

Class

A4,

4.31%,

12/15/51

4,995

4,669,216

Series

2018-SUN,

Class

A,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

07/15/35

(a)(b)

.

1,300

1,271,436

Series

2019-NUGS,

Class

D,

(LIBOR

USD

1

Month

+

1.80%),

4.62%,

12/15/36

(a)(b)

.

8,000

7,559,242

MTN

Commercial

Mortgage

Trust,

Series

2022-

LPFL,

Class

A,

(1

Month

CME

Term

SOFR

+

1.40%),

4.24%,

03/15/39

(a)(b)

.........

14,870

14,461,433

Natixis

Commercial

Mortgage

Securities

Trust,

Series

2018-FL1,

Class

A,

(LIBOR

USD

1

Month

+

0.95%),

3.77%,

06/15/35

(a)(b)

...

3,418

3,306,694

Pearl

Finance

DAC

(a)

Series

2020-1,

Class

A2,

(EURIBOR

3

Month

+

1.90%),

2.24%,

11/17/32

(d)

..

EUR

1,128

1,096,857

Series

2020-1,

Class

B,

(EURIBOR

3

Month

+

2.50%),

2.84%,

11/17/32

(d)

.......

1,355

1,317,974

PKHL

Commercial

Mortgage

Trust,

Series

2021-MF,

Class

A,

(LIBOR

USD

1

Month

+

0.88%),

3.70%,

07/15/38

(a)(b)

.........

USD

15,473

14,852,592

Ready

Capital

Mortgage

Financing

LLC,

Series

2022-FL9,

Class

A,

(1

Month

CME

Term

SOFR

+

2.47%),

5.53%,

06/25/37

(a)(b)

...

1,626

1,610,819

Sage

AR

Funding

No.

1

plc,

Series

1X,

Class

C,

(Sterling

Overnight

Index

Average

+

2.15%),

4.34%,

11/17/30

(a)(d)

.........

GBP

535

577,271

SREIT

Trust,

Series

2021-MFP2,

Class

A,

(LIBOR

USD

1

Month

+

0.82%),

3.64%,

11/15/36

(a)(b)

....................

USD

4,025

3,853,579

Taubman

Centers

Commercial

Mortgage

Trust,

Series

2022-DPM,

Class

A,

(1

Month

CME

Term

SOFR

+

2.19%),

5.03%,

05/15/37

(a)(b)

4,580

4,472,296

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

Taurus

UK

DAC

(a)

Series

2021-UK1X,

Class

B,

(Sterling

Overnight

Index

Average

+

1.30%),

3.49%,

05/17/31

(d)

..............

GBP

880

$

939,280

Series

2021-UK1X,

Class

C,

(Sterling

Overnight

Index

Average

+

1.65%),

3.84%,

05/17/31

(d)

..............

536

566,686

Series

2021-UK1X,

Class

D,

(Sterling

Overnight

Index

Average

+

2.60%),

4.79%,

05/17/31

(d)

..............

547

575,343

Series

2021-UK4X,

Class

D,

(Sterling

Overnight

Index

Average

+

2.10%),

4.29%,

08/17/31

(d)

..............

1,414

1,455,048

TPGI

Trust,

Series

2021-DGWD,

Class

A,

(LIBOR

USD

1

Month

+

0.70%),

3.52%,

06/15/26

(a)(b)

....................

USD

10,540

10,091,057

TTAN

MHC,

Series

2021-MHC,

Class

A,

(LIBOR

USD

1

Month

+

0.85%),

3.67%,

03/15/38

(a)(b)

....................

8,373

8,078,710

UBS

Commercial

Mortgage

Trust,

Series

2019-

C18,

Class

A4,

3.04%,

12/15/52

.......

7,873

6,733,529

UBS-Barclays

Commercial

Mortgage

Trust

Series

2013-C5,

Class

AS,

3.35%,

03/10/46

(b)

...................

9,713

9,625,600

Series

2013-C6,

Class

ASB,

2.79%,

04/10/46

....................

159

158,613

Velocity

Commercial

Capital

Loan

Trust

(b)

Series

2018-1,

Class

A,

3.59%,

04/25/48

.

469

453,158

Series

2019-3,

Class

A,

3.03%,

10/25/49

(a)

2,977

2,828,715

Wells

Fargo

Commercial

Mortgage

Trust

Series

2014-LC16,

Class

ASB,

3.48%,

08/15/50

....................

3,746

3,696,564

Series

2015-C27,

Class

A5,

3.45%,

02/15/48

....................

10,140

9,674,291

Series

2015-C28,

Class

ASB,

3.31%,

05/15/48

....................

2,870

2,799,720

Series

2017-C39,

Class

A5,

3.42%,

09/15/50

....................

15,250

14,013,329

WFRBS

Commercial

Mortgage

Trust

Series

2014-C21,

Class

ASB,

3.39%,

08/15/47

....................

4,404

4,347,588

Series

2014-C21,

Class

ASBF,

(LIBOR

USD

1

Month

+

0.56%),

2.94%,

08/15/47

(a)(b)

1,139

1,136,333

Series

2014-C24,

Class

ASB,

3.32%,

11/15/47

....................

4,125

4,040,142

647,011,048

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.0%

Commercial

Mortgage

Trust,

Series

2015-

CR23,

Class

XA,

1.02%,

05/10/48

(a)

....

31,968

549,832

Total

Non-Agency

Mortgage-Backed

Securities

—

12.4%

(Cost:

$877,948,095)

.............................

815,572,221

U.S.

Government

Sponsored

Agency

Securities

Collateralized

Mortgage

Obligations

—

2.0%

Federal

Home

Loan

Mortgage

Corp.

Series

3710,

Class

MG,

4.00%, 08/15/25

(c)

227

226,140

Series

3959,

Class

MA,

4.50%, 11/15/41

.

941

934,383

Series

3986,

Class

M,

4.50%, 09/15/41

..

388

388,017

Series

4459,

Class

BN,

3.00%, 08/15/43

.

4,210

3,865,102

Series

4569,

Class

JA,

3.00%, 03/15/42

.

4,770

4,629,290

Series

4752,

Class

PL,

3.00%, 09/15/46

.

5,981

5,604,099

Series

4941,

Class

MB,

3.00%, 07/25/49

.

4,904

4,493,198

Series

5000,

Class

MA,

2.00%, 06/25/44

.

3,823

3,489,501

Series

5006,

Class

KA,

2.00%, 06/25/45

.

10,745

9,721,780

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

103

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

Series

5105,

Class

LA,

1.50%, 04/15/44

.

USD

34,904

$

32,880,929

Federal

Home

Loan

Mortgage

Corp.

STACR

Trust

Variable

Rate

Notes,

Series

2019-

FTR2,

Class

M1,

(LIBOR

USD

1

Month

+

0.95%),

4.03%, 11/25/48

(a)(b)

.........

556

549,316

Federal

National

Mortgage

Association

(c)

Series

2011-48,

Class

MG,

4.00%, 06/25/26

516

511,275

Series

2011-84,

Class

MG,

4.00%, 09/25/26

698

692,049

Federal

National

Mortgage

Association

Variable

Rate

Notes

(a)

Series

1997-20,

Class

FB,

0.62%, 03/25/27

12

11,305

Series

2022-65,

Class

FB,

(SOFR

30

Day

Average

+

0.80%),

3.09%, 09/25/52

..

49,570

49,539,019

Government

National

Mortgage

Association

Series

2013-131,

Class

PA,

3.50%, 06/16/42

846

837,721

Series

2017-136,

Class

GB,

3.00%, 03/20/47

...............

4,175

3,960,081

Series

2018-36,

Class

AM,

3.00%, 07/20/45

10,472

10,106,541

132,439,746

Commercial

Mortgage-Backed

Securities

—

0.2%

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates,

Series

KIR2,

Class

A1,

2.75%, 03/25/27

.

4,821

4,647,924

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes

(a)(b)

Series

2013-K25,

Class

B,

3.75%, 11/25/45

1,150

1,145,708

Series

2013-K26,

Class

B,

3.69%, 12/25/45

1,247

1,242,345

Series

2013-K27,

Class

B,

3.61%, 01/25/46

2,875

2,857,368

9,893,345

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.0%

(a)

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates

Variable

Rate

Notes,

Series

K121,

Class

X1,

1.12%, 10/25/30

.................

11,892

725,275

Government

National

Mortgage

Association

Variable

Rate

Notes,

Series

2012-120,

0.65%, 02/16/53

.................

10,983

185,198

910,473

Mortgage-Backed

Securities

—

9.1%

Federal

Home

Loan

Mortgage

Corp.

3.00%, 02/01/36

.................

2,740

2,526,692

4.00%, 02/01/34

-

06/01/37

..........

15,580

15,079,003

4.50%, 07/01/47

-

03/01/49

..........

46,601

45,810,598

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes,

(LIBOR

USD

12

Month

+

1.63%),

2.94%, 10/01/45

(a)

..........

1,347

1,380,853

Federal

National

Mortgage

Association

Variable

Rate

Notes

(a)

(LIBOR

USD

12

Month

+

1.59%),

2.88%, 11/01/45

...............

141

144,659

(LIBOR

USD

12

Month

+

1.75%),

2.93%, 09/01/42

...............

1,780

1,805,499

(LIBOR

USD

12

Month

+

1.59%),

2.99%, 06/01/45

...............

1,809

1,776,609

(LIBOR

USD

12

Month

+

1.58%),

4.68%, 09/01/45

...............

2,105

2,152,453

Uniform

Mortgage-Backed

Securities

2.50%, 12/01/27

-

04/01/32

..........

23,110

21,556,242

3.00%, 12/01/26

-

09/01/35

..........

31,586

29,500,332

3.50%, 04/01/34

.................

2,371

2,248,333

4.00%, 04/01/26

-

03/01/48

..........

87,385

84,082,252

4.50%, 03/01/47

-

01/01/50

..........

38,194

37,262,183

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

4.50%, 10/25/52

-

11/25/52

(j)

.........

USD

372,995

$

355,107,791

600,433,499

Total

U.S.

Government

Sponsored

Agency

Securities

—

11.3%

(Cost:

$774,344,060)

.............................

743,677,063

U.S.

Treasury

Obligations

U.S.

Treasury

Bonds

,

1.75%, 08/15/41

(k)

...

100,000

68,371,094

U.S.

Treasury

Inflation

Linked

Notes

,

0.13%, 04/15/27

.................

77,667

71,609,287

U.S.

Treasury

Notes

1.50%, 02/15/25

.................

61,100

57,274,090

1.75%, 03/15/25

.................

244,490

230,221,715

2.63%, 04/15/25

.................

31,480

30,231,867

2.75%, 05/15/25

.................

86,970

83,691,639

2.88%, 06/15/25

.................

246,000

237,245,859

3.13%, 08/15/25

.................

458,295

444,223,913

3.50%, 09/15/25

.................

484,560

474,679,521

Total

U.S.

Treasury

Obligations

—

25.9%

(Cost:

$1,762,259,100)

...........................

1,697,548,985

Total

Long-Term

Investments

—

103.0%

(Cost:

$7,238,352,901)

...........................

6,762,972,194

Short-Term

Securities

Certificates

of

Deposit

—

0.4%

Domestic

—

0.4%

Citibank

NA,

5.00%, 09/21/23

..........

30,000

30,015,911

Total

Certificates

of

Deposit

—

0.4%

(Cost:

$30,000,000)

..............................

30,015,911

Commercial

Paper

—

2.0%

(l)

Enel

Finance

America

LLC

3.76%,

11/21/22

.................

7,700

7,659,226

4.76%,

08/09/23

.................

5,000

4,792,246

5.26%,

08/18/23

.................

21,000

20,099,527

5.54%,

09/01/23

.................

25,000

23,876,967

5.27%,

09/06/23

.................

20,000

19,087,446

General

Motors

Financial

Co.,

Inc.,

3.38%

,

11/14/22

.......................

8,000

7,961,250

HSBC

USA,

Inc.

4.01%,

06/14/23

.................

24,325

23,537,134

4.50%,

08/23/23

.................

8,600

8,234,414

National

Australia

Bank

Ltd.,

3.38%

,

03/15/23

15,000

14,712,474

Total

Commercial

Paper

—

2.0%

(Cost:

$130,024,736)

.............................

129,960,684

Shares

Shares

Money

Market

Funds

—

1.8%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(h)(m)

.................

119,082,389

119,082,389

Total

Money

Market

Funds

—

1.8%

(Cost:

$119,082,389)

.............................

119,082,389

Total

Short-Term

Securities

—

4.2%

(Cost:

$279,107,125)

.............................

279,058,984

Total

Investments

Before

TBA

Sale

Commitments

—

107.2%

(Cost:

$7,517,460,026

)

...........................

7,042,031,178

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

104

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Pa

r

(

000)

Value

TBA

Sale

Commitments

Mortgage-Backed

Securities

—

(1.5)%

Uniform

Mortgage-Backed

Securities,

4.50%, 10/25/52

(j)

................

USD

(105,340)

$

(100,344,580)

Total

TBA

Sale

Commitments

—

(1.5)%

(Proceeds:

$(100,728,345))

........................

(100,344,580)

Total

Investments

Net

of

TBA

Sale

Commitments

—

105.7%

(Cost:

$7,416,731,681

)

...........................

6,941,686,598

Liabilities

in

Excess

of

Other

Assets

—

(5.7)%

............

(377,185,079)

Net

Assets

—

100.0%

..............................

$

6,564,501,519

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(d)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(e)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(f)

Issuer

filed

for

bankruptcy

and/or

is

in

default.

(g)

Non-income

producing

security.

(h)

Affiliate

of

the

Fund.

(i)

Rounds

to

less

than

1,000.

(j)

Represents

or

includes

a

TBA

transaction.

(k)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

TBA

commitments.

(l)

Rates

are

discount

rates

or

a

range

of

discount

rates

as

of

period

end.

(m)

Annualized

7-day

yield

as

of

period

end.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Par/Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

52,560,109

$

66,522,280

(a)

$

—

$

—

$

—

$

119,082,389

119,082,389

$

1,043,506

$

—

BlackRock

Capital

Finance

LP,

Series

1997-R2,

Class

AP

...

13,876

—

—

—

263

14,139

15,614

945

—

iShares

Short

Maturity

Bond

ETF

(b)

159,445,199

—

(158,712,990)

(725,289)

(6,920)

—

—

335,744

—

$

(725,289)

$

(6,657)

$

119,096,528

$

1,380,195

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

(b)

As

of

period

end,

the

entity

is

no

longer

held.

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

105

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

2

Year

Note

....................................................

14,208

12/30/22

$

2,917,191

$

(46,823,901)

Short

Contracts

Euro-

Bobl

...............................................................

1,145

12/08/22

134,378

3,254,336

Euro-Bund

..............................................................

7

12/08/22

950

44,870

Euro-Schatz

.............................................................

395

12/08/22

41,486

373,301

Japan

10

Year

Bond

........................................................

102

12/13/22

104,516

77,177

U.S.

Treasury

10

Year

Note

...................................................

2,423

12/20/22

271,527

7,415,498

U.S.

Treasury

10

Year

Ultra

Note

...............................................

1,550

12/20/22

183,723

9,947,371

U.S.

Treasury

Long

Bond

....................................................

122

12/20/22

15,437

1,291,410

U.S.

Treasury

Ultra

Bond

....................................................

431

12/20/22

58,912

5,641,989

U.S.

Treasury

5

Year

Note

....................................................

6,322

12/30/22

679,269

19,161,083

47,207,035

$

383,134

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

USD

740,943

EUR

733,930

JPMorgan

Chase

Bank

NA

12/14/22

$

17,667

EUR

3,102,000

USD

3,010,963

Morgan

Stanley

&

Co.

International

plc

12/21/22

48,419

USD

7,122,640

CAD

9,409,000

Bank

of

New

York

Mellon

12/21/22

308,567

USD

348,923,283

EUR

347,502,000

JPMorgan

Chase

Bank

NA

12/21/22

6,195,613

USD

504,132

EUR

500,898

Morgan

Stanley

&

Co.

International

plc

12/21/22

10,117

USD

541,291

EUR

538,000

UBS

AG

12/21/22

10,682

USD

36,847,413

GBP

32,039,000

HSBC

Bank

plc

12/21/22

1,030,457

$

7,621,522

Centrally

Cleared

Credit

Default

Swaps

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

CDX.NA.IG.39.V1

...................

1.00

%

Quarterly

12/20/27

USD

49,260

$

154,028

$

(79,346)

$

233,374

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1

day

SOFR

Annual

3.66%

Annual

01/05/23

(a)

09/30/24

USD

159,730

$

(1,633,579)

$

34,165

$

(1,667,744)

3.22%

Annual

1

day

SOFR

Annual

01/05/23

(a)

02/28/27

USD

159,730

3,994,405

64,141

3,930,264

$

2,360,826

$

98,306

$

2,262,520

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

106

Schedule

of

Investments

(continued)

September

30,

2022

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

%

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

98,306

$

(79,346)

$

4,163,638

$

(1,667,744)

$

—

(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.

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)

.....

$

—

$

—

$

—

$

—

$

47,207,035

$

—

$

47,207,035

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

7,621,522

—

—

7,621,522

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

233,374

—

—

3,930,264

—

4,163,638

$

—

$

233,374

$

—

$

7,621,522

$

51,137,299

$

—

$

58,992,195

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

46,823,901

$

—

$

46,823,901

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

1,667,744

—

1,667,744

$

—

$

—

$

—

$

—

$

48,491,645

$

—

$

48,491,645

(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

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

—

$

—

$

33,543,351

$

—

$

33,543,351

Forward

foreign

currency

exchange

contracts

....

—

—

—

83,767,898

—

—

83,767,898

Options

purchased

(a)

....................

—

—

—

—

11,096,079

—

11,096,079

Options

written

........................

—

—

—

—

(24,971,858)

—

(24,971,858)

Swaps

..............................

—

3,848,299

—

—

10,022,103

—

13,870,402

$

—

$

3,848,299

$

—

$

83,767,898

$

29,689,675

$

—

$

117,305,872

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

(10,354,978)

$

—

$

(10,354,978)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(3,495,438)

—

—

(3,495,438)

Options

purchased

(b)

....................

—

—

—

—

1,418,777

—

1,418,777

Options

written

........................

—

—

—

—

(7,137,398)

—

(7,137,398)

Swaps

..............................

—

(697,664)

—

—

1,582,698

—

885,034

$

—

$

(697,664)

$

—

$

(3,495,438)

$

(14,490,901)

$

—

$

(18,684,003)

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

107

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

(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

..................................................................................

$

3,304,427

,

049

Average

notional

value

of

contracts

—

short

.................................................................................

$

1,793,847

,

096

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

466,197,021

Average

amounts

sold

—

in

USD

........................................................................................

$

7,656,064

Options

Average

value

of

option

contracts

purchased

................................................................................

$

76,906

Average

value

of

option

contracts

written

...................................................................................

$

20,075

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

501,067,000

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

2,063,790,555

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

90,102,500

Average

notional

value

—

sell

protection

...................................................................................

$

26,188,750

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

1,775,097,489

Average

notional

value

—

receives

fixed

rate

................................................................................

$

1,167,747,500

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

4,610,221

$

3,630,719

Forward

foreign

currency

exchange

contracts

.................................................................

7,621,522

—

Swaps

—

centrally

cleared

..............................................................................

643,183

—

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

12,874,926

$

3,630,719

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(5,253,404)

(3,630,719)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

7,621,522

$

—

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

Non-cash

Collateral

Received

Cash

Collateral

Received

Net

Amount

of

Derivative

Assets

(a)(b)

Bank

of

New

York

Mellon

...........................

$

308,56

7

$

—

$

—

$

—

$

308,56

7

HSBC

Bank

plc

..................................

1,030,45

7

—

—

—

1,030,45

7

JPMorgan

Chase

Bank

NA

..........................

6,213,2

80

—

—

—

6,213,2

80

Morgan

Stanley

&

Co.

International

plc

..................

58,536

—

—

—

58,536

UBS

AG

......................................

10,68

2

—

—

—

10,68

2

$

7,621,522

$

—

$

—

$

—

$

7,621,522

(a)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

(b)

Net

amount

may

also

include

forward

foreign

currency

exchange

contracts

that

are

not

required

to

be

collateralized.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Low

Duration

Bond

Portfolio

108

Schedule

of

Investments

(continued)

September

30,

2022

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

....................................

$

—

$

1,248,198,947

$

10,958,750

$

1,259,157,697

Corporate

Bonds

Aerospace

&

Defense

....................................

—

15,646,554

—

15,646,554

Airlines

..............................................

—

11,386,412

—

11,386,412

Auto

Components

......................................

—

16,973,726

—

16,973,726

Automobiles

..........................................

—

68,560,734

—

68,560,734

Banks

...............................................

—

494,799,624

—

494,799,624

Beverages

...........................................

—

8,312,624

—

8,312,624

Biotechnology

.........................................

—

13,979,878

—

13,979,878

Building

Products

.......................................

—

5,150,426

—

5,150,426

Capital

Markets

........................................

—

209,531,403

—

209,531,403

Chemicals

............................................

—

70,508,865

—

70,508,865

Commercial

Services

&

Supplies

.............................

—

8,459,139

—

8,459,139

Communications

Equipment

................................

—

1,486,408

—

1,486,408

Construction

&

Engineering

................................

—

9,297,520

—

9,297,520

Construction

Materials

....................................

—

1,556,432

—

1,556,432

Consumer

Finance

......................................

—

176,249,037

—

176,249,037

Containers

&

Packaging

..................................

—

31,754,768

—

31,754,768

Distributors

...........................................

—

20,995

—

20,995

Diversified

Consumer

Services

..............................

—

1,246,694

—

1,246,694

Diversified

Financial

Services

...............................

—

20,757,201

—

20,757,201

Diversified

Telecommunication

Services

........................

—

64,172,397

—

64,172,397

Electric

Utilities

........................................

—

71,345,522

—

71,345,522

Electrical

Equipment

.....................................

—

4,207,082

—

4,207,082

Electronic

Equipment,

Instruments

&

Components

.................

—

17,472,418

—

17,472,418

Energy

Equipment

&

Services

..............................

—

3,254,130

—

3,254,130

Entertainment

.........................................

—

11,936,666

—

11,936,666

Equity

Real

Estate

Investment

Trusts

(REITs)

....................

—

61,440,400

—

61,440,400

Food

&

Staples

Retailing

..................................

—

22,276,312

—

22,276,312

Food

Products

.........................................

—

11,436,835

—

11,436,835

Gas

Utilities

...........................................

—

9,731,899

—

9,731,899

Health

Care

Equipment

&

Supplies

...........................

—

17,064,143

—

17,064,143

Health

Care

Providers

&

Services

............................

—

50,332,565

—

50,332,565

Health

Care

Technology

..................................

—

985,652

—

985,652

Hotels,

Restaurants

&

Leisure

..............................

—

16,471,597

—

16,471,597

Household

Durables

.....................................

—

29,676,385

—

29,676,385

Household

Products

.....................................

—

387,419

—

387,419

Independent

Power

and

Renewable

Electricity

Producers

............

—

8,814,155

—

8,814,155

Insurance

............................................

—

25,621,428

—

25,621,428

Interactive

Media

&

Services

...............................

—

20,538,279

—

20,538,279

Internet

&

Direct

Marketing

Retail

............................

—

1,032,943

—

1,032,943

IT

Services

...........................................

—

28,321,599

—

28,321,599

Life

Sciences

Tools

&

Services

..............................

—

5,902,111

—

5,902,111

Machinery

............................................

—

20,308,376

—

20,308,376

Media

...............................................

—

51,672,473

—

51,672,473

Metals

&

Mining

........................................

—

11,026,557

—

11,026,557

Mortgage

Real

Estate

Investment

Trusts

(REITs)

..................

—

348,356

—

348,356

Multi-Utilities

..........................................

—

14,187,688

—

14,187,688

Oil,

Gas

&

Consumable

Fuels

...............................

—

117,259,389

—

117,259,389

Paper

&

Forest

Products

..................................

—

289,112

—

289,112

Personal

Products

......................................

—

3,393,466

—

3,393,466

Pharmaceuticals

.......................................

—

11,960,339

—

11,960,339

Professional

Services

....................................

—

1,663,842

—

1,663,842

Real

Estate

Management

&

Development

.......................

—

12,893,708

—

12,893,708

Road

&

Rail

...........................................

—

33,922,404

—

33,922,404

BlackRock

Low

Duration

Bond

Portfolio

Schedules

of

Investments

109

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Semiconductors

&

Semiconductor

Equipment

....................

$

—

$

25,633,317

$

—

$

25,633,317

Software

.............................................

—

69,379,855

—

69,379,855

Specialty

Retail

........................................

—

11,536,420

—

11,536,420

Technology

Hardware,

Storage

&

Peripherals

....................

—

7,251,993

3,154,868

10,406,861

Textiles,

Apparel

&

Luxury

Goods

............................

—

519,027

—

519,027

Thrifts

&

Mortgage

Finance

................................

—

7,250,784

4,023,000

11,273,784

Tobacco

.............................................

—

53,389,541

—

53,389,541

Trading

Companies

&

Distributors

............................

—

23,375,345

—

23,375,345

Transportation

Infrastructure

...............................

—

3,598,171

—

3,598,171

Wireless

Telecommunication

Services

.........................

—

26,970,457

—

26,970,457

Floating

Rate

Loan

Interests

.................................

—

31,263

—

31,263

Foreign

Agency

Obligations

.................................

—

54,108,387

—

54,108,387

Foreign

Government

Obligations

..............................

—

29,767,713

—

29,767,713

Non-Agency

Mortgage-Backed

Securities

........................

—

804,798,550

10,773,671

815,572,221

U.S.

Government

Sponsored

Agency

Securities

....................

—

743,677,063

—

743,677,063

U.S.

Treasury

Obligations

...................................

—

1,697,548,985

—

1,697,548,985

Short-Term

Securities

Certificates

of

Deposit

.....................................

—

30,015,911

—

30,015,911

Commercial

Paper

.......................................

—

129,960,684

—

129,960,684

Money

Market

Funds

......................................

119,082,389

—

—

119,082,389

Liabilities

Investments

TBA

Sale

Commitments

....................................

—

(100,344,580)

—

(100,344,580)

$

119,082,389

$

6,793,693,920

$

28,910,289

$

6,941,686,598

Derivative

Financial

Instruments

(a)

Assets

Credit

contracts

...........................................

$

—

$

233,374

$

—

$

233,374

Foreign

currency

exchange

contracts

............................

—

7,621,522

—

7,621,522

Interest

rate

contracts

.......................................

47,207,035

3,930,264

—

51,137,299

Liabilities

Interest

rate

contracts

.......................................

(46,823,901)

(1,667,744)

—

(48,491,645)

$

383,134

$

10,117,416

$

—

$

10,500,550

(a)

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.

Statements

of

Assets

and

Liabilities

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

110

BlackRock

Core

Bond

Portfolio

BlackRock

High

Yield

Bond

Portfolio

(a)

BlackRock

Low

Duration

Bond

Portfolio

ASSETS

Investments,

at

value

—

unaffiliated

(b)

(c)

.........................................................

$

3,549,252,389‌

$

16,538,144,114‌

$

6,922,934,650‌

Investments,

at

value

—

affiliated

(d)

............................................................

156,097,271‌

931,155,484‌

119,096,528‌

Cash  

...............................................................................

1,008,851‌

32,898,379‌

—‌

Cash

pledged:

Collateral

—

exchange-traded

options

written

....................................................

—‌

875,000‌

—‌

Collateral

—

OTC

derivatives

..............................................................

—‌

69,710,000‌

—‌

Collateral

—

TBA

commitments

.............................................................

1,661,000‌

—‌

—‌

Futures

contracts

......................................................................

14,756,520‌

11,149,000‌

18,937,000‌

Centrally

cleared

swaps

..................................................................

3,170,778‌

—‌

10,933,000‌

Foreign

currency,

at

value

(e)

.................................................................

9,167,031‌

446,434‌

2,702,563‌

Receivables:

–‌

–‌

–‌

Investments

sold

......................................................................

2,055,496‌

117,714,906‌

198,648,507‌

Securities

lending

income

—

affiliated

........................................................

—‌

31,582‌

—‌

Swaps  

............................................................................

253,821‌

5,860,142‌

—‌

TBA

sale

commitments

..................................................................

268,674,655‌

—‌

100,728,345‌

Capital

shares

sold

.....................................................................

45,996,695‌

105,503,287‌

19,397,169‌

Dividends

—

affiliated

...................................................................

217,415‌

1,514,114‌

227,613‌

Interest

—

unaffiliated

...................................................................

20,936,161‌

263,164,099‌

32,714,601‌

From

the

Manager

.....................................................................

144,421‌

—‌

53,185‌

Variation

margin

on

futures

contracts

.........................................................

552,771‌

2,747,526‌

4,610,221‌

Variation

margin

on

centrally

cleared

swaps

....................................................

—‌

—‌

643,183‌

Swap

premiums

paid

.....................................................................

269,715‌

809,195‌

—‌

Unrealized

appreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

1,736,965‌

7,675,566‌

7,621,522‌

OTC

swaps

..........................................................................

858,820‌

258,550‌

—‌

Prepaid

expenses

.......................................................................

138,701‌

833,043‌

196,308‌

Total

assets

...........................................................................

4,076,949,476‌

18,090,490,421‌

7,439,444,395‌

LIABILITIES

Investments

sold

short,

at

value

(f)

.............................................................

—‌

3,030‌

—‌

Bank

overdraft

..........................................................................

—‌

—‌

988,837‌

Cash

received:

Collateral

—

OTC

derivatives

..............................................................

972,000‌

—‌

—‌

Collateral

on

securities

loaned

...............................................................

—‌

9,254,663‌

—‌

Options

written,

at

value

(g)

..................................................................

27,884,327‌

267,985‌

—‌

TBA

sale

commitments,

at

value

(h)

............................................................

261,362,418‌

—‌

100,344,580‌

Payables:

–‌

–‌

–‌

Investments

purchased

..................................................................

461,166,453‌

132,060,573‌

643,768,796‌

Swaps  

............................................................................

2,234‌

229,167‌

—‌

Accounting

services

fees

.................................................................

68,557‌

281,233‌

142,354‌

Administration

fees

.....................................................................

103,631‌

785,405‌

215,910‌

Capital

shares

redeemed

.................................................................

8,016,197‌

134,986,689‌

119,728,875‌

Custodian

fees

........................................................................

31,880‌

73,512‌

54,640‌

Income

dividend

distributions

..............................................................

1,440,849‌

10,219,424‌

1,564,077‌

Investment

advisory

fees

.................................................................

875,387‌

6,179,069‌

1,585,468‌

Trustees'

and

Officer's

fees

...............................................................

8,965‌

218,325‌

78,760‌

Other

affiliate

fees

.....................................................................

—‌

144,361‌

4,818‌

Professional

fees

......................................................................

109,254‌

257,949‌

116,514‌

Registration

fees

......................................................................

—‌

—‌

193,137‌

Service

and

distribution

fees

...............................................................

92,806‌

419,777‌

235,064‌

Transfer

agent

fees

....................................................................

1,086,254‌

5,255,387‌

2,243,899‌

Other

accrued

expenses

.................................................................

11,029‌

162,536‌

46,428‌

Variation

margin

on

futures

contracts

.........................................................

2,547,330‌

—‌

3,630,719‌

Variation

margin

on

centrally

cleared

swaps

....................................................

331,352‌

5,628,804‌

—‌

Swap

premiums

received

..................................................................

525,522‌

2,689,978‌

—‌

Unrealized

depreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

345,311‌

35,497‌

—‌

OTC

swaps

..........................................................................

984,527‌

75,838,605‌

—‌

Total

liabilities

..........................................................................

767,966,283‌

384,991,969‌

874,942,876‌

NET

ASSETS

..........................................................................

$

3,308,983,193‌

$

17,705,498,452‌

$

6,564,501,519‌

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2022

111

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Core

Bond

Portfolio

BlackRock

High

Yield

Bond

Portfolio

(a)

BlackRock

Low

Duration

Bond

Portfolio

NET

ASSETS

CONSIST

OF:

Paid-in

capital

..........................................................................

$

3,986,420,238‌

$

20,706,609,240‌

$

7,227,049,331‌

Accumulated

loss

.......................................................................

(677,437,045‌)

(3,001,110,788‌)

(662,547,812‌)

NET

ASSETS

..........................................................................

$

3,308,983,193‌

$

17,705,498,452‌

$

6,564,501,519‌

(a)

  Consolidated

Statement

of

Assets

and

Liabilities.

(b)

  Investments,

at

cost

—

unaffiliated

..........................................................

$

3,998,983,833‌

$

19,119,621,290‌

$

7,398,362,094‌

(c)

  Securities

loaned,

at

value

................................................................

$

—‌

$

8,821,751‌

$

—‌

(d)

  Investments,

at

cost

—

affiliated

............................................................

$

156,097,271‌

$

931,151,621‌

$

119,097,932‌

(e)

  Foreign

currency,

at

cost

.................................................................

$

9,443,902‌

$

450,436‌

$

2,877,918‌

(f)

  Proceeds

received

from

short

sales

.........................................................

$

—‌

$

5,919‌

$

—‌

(g)

  Premiums

received

....................................................................

$

16,038,780‌

$

216,642‌

$

—‌

(h)

  Proceeds

from

TBA

sale

commitments

.......................................................

$

268,674,655‌

$

—‌

$

100,728,345‌

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

112

See

notes

to

financial

statements.

BlackRock

Core

Bond

Portfolio

BlackRock

High

Yield

Bond

Portfolio

(a)

BlackRock

Low

Duration

Bond

Portfolio

NET

ASSET

VALUE

Institutional

Net

assets

.........................................................................

$

2,350,702,688‌

$

10,232,727,576‌

$

4,789,552,161‌

Shares

outstanding

..................................................................

289,574,034‌

1,579,954,787‌

537,774,822‌

Net

asset

value

.....................................................................

$

8.12‌

$

6.48‌

$

8.91‌

Shares

authorized

...................................................................

Unlimited

Unlimited

Unlimited

Par

value

.........................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Service

Net

assets

.........................................................................

$

—‌

$

80,995,468‌

$

—‌

Shares

outstanding

..................................................................

—‌

12,500,285‌

—‌

Net

asset

value

.....................................................................

$

—‌

$

6.48‌

$

—‌

Shares

authorized

...................................................................

—

Unlimited

—

Par

value

.........................................................................

$

—‌

$

0.001‌

$

—‌

Investor

A

Net

assets

.........................................................................

$

358,178,814‌

$

1,088,099,503‌

$

916,865,192‌

Shares

outstanding

..................................................................

44,062,107‌

168,082,368‌

102,977,106‌

Net

asset

value

.....................................................................

$

8.13‌

$

6.47‌

$

8.90‌

Shares

authorized

...................................................................

Unlimited

Unlimited

Unlimited

Par

value

.........................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Investor

A1

Net

assets

.........................................................................

$

—‌

$

—‌

$

5,133,902‌

Shares

outstanding

..................................................................

—‌

—‌

576,168‌

Net

asset

value

.....................................................................

$

—‌

$

—‌

$

8.91‌

Shares

authorized

...................................................................

—

—

Unlimited

Par

value

.........................................................................

$

—‌

$

—‌

$

0.001‌

Investor

C

Net

assets

.........................................................................

$

14,300,010‌

$

95,814,979‌

$

36,103,039‌

Shares

outstanding

..................................................................

1,767,302‌

14,777,534‌

4,056,886‌

Net

asset

value

.....................................................................

$

8.09‌

$

6.48‌

$

8.90‌

Shares

authorized

...................................................................

Unlimited

Unlimited

Unlimited

Par

value

.........................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Class

K

Net

assets

.........................................................................

$

584,717,874‌

$

6,116,736,720‌

$

814,126,546‌

Shares

outstanding

..................................................................

71,800,667‌

943,941,062‌

91,486,083‌

Net

asset

value

.....................................................................

$

8.14‌

$

6.48‌

$

8.90‌

Shares

authorized

...................................................................

Unlimited

Unlimited

Unlimited

Par

value

.........................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Class

R

Net

assets

.........................................................................

$

1,083,807‌

$

91,124,206‌

$

2,720,679‌

Shares

outstanding

..................................................................

133,270‌

14,073,426‌

305,601‌

Net

asset

value

.....................................................................

$

8.13‌

$

6.47‌

$

8.90‌

Shares

authorized

...................................................................

Unlimited

Unlimited

Unlimited

Par

value

.........................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Statements

of

Operations

Year

Ended

September

30,

2022

113

Financial

Statements

BlackRock

Core

Bond

Portfolio

BlackRock

High

Yield

Bond

Portfolio

(a)

BlackRock

Low

Duration

Bond

Portfolio

INVESTMENT

INCOME

–

–

–

Dividends

—

unaffiliated

.................................................................

$

—‌

$

18,268,252‌

$

—‌

Dividends

—

affiliated

...................................................................

759,372‌

13,524,388‌

1,379,250‌

Interest

—

affiliated

....................................................................

—‌

—‌

945‌

Interest

—

unaffiliated

...................................................................

85,351,618‌

1,142,212,891‌

154,977,084‌

Securities

lending

income

—

affiliated

—

net

...................................................

—‌

1,790,917‌

—‌

Foreign

taxes

withheld

..................................................................

(2,714‌)

—‌

—‌

Total

investment

income

...................................................................

86,108,276‌

1,175,796,448‌

156,357,279‌

EXPENSES

Investment

advisory

....................................................................

12,898,007‌

85,809,618‌

22,219,373‌

Transfer

agent

—

class

specific

............................................................

3,615,240‌

16,969,310‌

5,641,905‌

Administration

.......................................................................

1,430,540‌

6,816,918‌

2,741,672‌

Service

and

distribution

—

class

specific

......................................................

1,246,105‌

5,266,804‌

3,212,423‌

Administration

—

class

specific

............................................................

768,587‌

4,202,767‌

1,571,723‌

Accounting

services

....................................................................

260,372‌

1,169,715‌

513,667‌

Registration

.........................................................................

214,040‌

406,397‌

435,361‌

Custodian

...........................................................................

123,071‌

268,674‌

172,448‌

Trustees

and

Officer

....................................................................

56,171‌

277,817‌

107,317‌

Miscellaneous

........................................................................

556,132‌

636,206‌

613,609‌

Total

expenses

.........................................................................

21,168,265‌

121,824,226‌

37,229,498‌

Less:

–‌

–‌

–‌

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

............................

(2,082,456‌)

(5,510‌)

(1,055,997‌)

Administration

fees

waived

by

the

Manager

—

class

specific

.........................................

(768,587‌)

(76,727‌)

(1,451,196‌)

Fees

waived

and/or

reimbursed

by

the

Manager

.................................................

(653,305‌)

(1,017,091‌)

(202,923‌)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

17,663,917‌

120,724,898‌

34,519,382‌

Net

investment

income

....................................................................

68,444,359‌

1,055,071,550‌

121,837,897‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

(703,549,634‌)

$

(3,958,812,348‌)

$

(667,141,768‌)

Net

realized

gain

(loss)

from:

Investments

—

unaffiliated

(b)

............................................................

$

(174,979,473‌)

$

(241,340,140‌)

$

(241,321,445‌)

Investments

—

affiliated

...............................................................

—‌

(39,153,449‌)

(725,289‌)

Forward

foreign

currency

exchange

contracts

.................................................

5,004,765‌

107,069,076‌

83,767,898‌

Foreign

currency

transactions

...........................................................

(525,848‌)

757,191‌

1,223,762‌

Futures

contracts

....................................................................

(10,823,952‌)

59,726,669‌

33,543,351‌

Options

written

.....................................................................

(3,591,615‌)

1,663,466‌

(24,971,858‌)

Swaps  

..........................................................................

(10,713,385‌)

(184,894,348‌)

13,870,402‌

(195,629,508‌)

(296,171,535‌)

(134,613,179‌)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

unaffiliated

(c)

............................................................

(488,131,287‌)

(3,593,630,691‌)

(511,574,509‌)

Investments

—

affiliated

...............................................................

—‌

3,570‌

(6,657‌)

Forward

foreign

currency

exchange

contracts

.................................................

666,753‌

(7,581,612‌)

(3,495,438‌)

Foreign

currency

translations

............................................................

(1,507,210‌)

(294,833‌)

(844,644‌)

Futures

contracts

....................................................................

(7,935,369‌)

19,629,984‌

(10,354,978‌)

Options

written

.....................................................................

(11,741,752‌)

(51,343‌)

(7,137,398‌)

Short

sales

—

unaffiliated

..............................................................

—‌

2,889‌

—‌

Swaps  

..........................................................................

728,739‌

(80,528,424‌)

885,034‌

Unfunded

floating

rate

loan

interests

.......................................................

—‌

(190,353‌)

—‌

(507,920,126‌)

(3,662,640,813‌)

(532,528,590‌)

Net

realized

and

unrealized

loss

..............................................................

(703,549,634‌)

(3,958,812,348‌)

(667,141,769‌)

NET

DECREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

...................................

$

(635,105,275‌)

$

(2,903,740,798‌)

$

(545,303,872‌)

(a)

  Consolidated

Statement

of

Operations.

(b)

  Net

of

foreign

capital

gain

tax

and

capital

gain

tax

refund,

if

applicable

of

.................................

$

(137‌)

$

—‌

$

—‌

(c)

Net

of

reduction

in

deferred

foreign

capital

gain

tax

of

..............................................

$

2,781‌

$

—‌

$

—‌

See

notes

to

financial

statements.

Statements

of

Changes

in

Net

Assets

2022

BlackRock

Annual

Report

to

Shareholders

114

See

notes

to

financial

statements.

BlackRock

Core

Bond

Portfolio

Year

Ended

09/30/22

Year

Ended

09/30/21

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..................................................................................

$

68,444,359‌

$

60,483,028‌

Net

realized

gain

(loss)

..................................................................................

(195,629,508‌)

39,296,974‌

Net

change

in

unrealized

appreciation

(depreciation)

..............................................................

(507,920,126‌)

(96,266,249‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................................................

(635,105,275‌)

3,513,753‌

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

From

net

investment

income

and

net

realized

gain:

  Institutional

.........................................................................................

(62,446,394‌)

(147,057,926‌)

  Service

............................................................................................

—‌

(2,087,346‌)

  Investor

A

..........................................................................................

(8,948,162‌)

(28,032,259‌)

  Investor

C

..........................................................................................

(291,649‌)

(1,522,843‌)

  Class

K

............................................................................................

(19,159,824‌)

(57,938,079‌)

  Class

R

............................................................................................

(23,765‌)

(74,964‌)

Return

of

capital:

–

–

  Institutional

.........................................................................................

(5,461,539‌)

—‌

  Investor

A

..........................................................................................

(782,603‌)

—‌

  Investor

C

..........................................................................................

(25,508‌)

—‌

  Class

K

............................................................................................

(1,675,711‌)

—‌

  Class

R

............................................................................................

(2,079‌)

—‌

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

.......................................................

(98,817,234‌)

(236,713,417‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

(decrease)

in

net

assets

derived

from

capital

share

transactions

...............................................

(280,887,706‌)

303,314,101‌

NET

ASSETS

Total

increase

(decrease)

in

net

assets

.........................................................................

(1,014,810,215‌)

70,114,437‌

Beginning

of

year

........................................................................................

4,323,793,408‌

4,253,678,971‌

End

of

year

............................................................................................

$

3,308,983,193‌

$

4,323,793,408‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Statements

of

Changes

in

Net

Assets

(continued)

115

Financial

Statements

See

notes

to

financial

statements.

BlackRock

High

Yield

Bond

Portfolio

(a)

BlackRock

Low

Duration

Bond

Portfolio

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/22

Year

Ended

09/30/21

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

....................................................

$

1,055,071,550‌

$

1,214,876,133‌

$

121,837,897‌

$

95,055,625‌

Net

realized

gain

(loss)

....................................................

(296,171,535‌)

1,153,830,246‌

(134,613,179‌)

80,561,431‌

Net

change

in

unrealized

appreciation

(depreciation)

................................

(3,662,640,813‌)

419,423,528‌

(532,528,590‌)

(60,934,857‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

...........................

(2,903,740,798‌)

2,788,129,907‌

(545,303,872‌)

114,682,199‌

DISTRIBUTIONS

TO

SHAREHOLDERS

(b)

From

net

investment

income

and

net

realized

gain:

  Institutional

...........................................................

(648,420,024‌)

(644,347,623‌)

(105,334,082‌)

(80,178,572‌)

  Service

..............................................................

(5,525,246‌)

(6,184,504‌)

—‌

(238,097‌)

  Investor

A

............................................................

(63,032,833‌)

(62,995,346‌)

(17,313,124‌)

(16,614,960‌)

  Investor

A1

...........................................................

—

—

(101,876‌)

(93,386‌)

  Investor

C

............................................................

(5,550,480‌)

(6,536,033‌)

(353,906‌)

(232,004‌)

  Class

K

..............................................................

(377,264,057‌)

(511,983,631‌)

(16,803,485‌)

(10,050,344‌)

  Class

R

..............................................................

(4,748,562‌)

(4,660,585‌)

(31,797‌)

(18,462‌)

Return

of

capital:

–

–

–

–

  Institutional

...........................................................

(28,490,662‌)

—‌

—‌

—‌

  Service

..............................................................

(242,772‌)

—‌

—‌

—‌

  Investor

A

............................................................

(2,769,574‌)

—‌

—‌

—‌

  Investor

C

............................................................

(243,880‌)

—‌

—‌

—‌

  Class

K

..............................................................

(16,576,451‌)

—‌

—‌

—‌

  Class

R

..............................................................

(208,645‌)

—‌

—‌

—‌

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

.........................

(1,153,073,186‌)

(1,236,707,722‌)

(139,938,270‌)

(107,425,825‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

(decrease)

in

net

assets

derived

from

capital

share

transactions

.................

(2,128,992,022‌)

(2,531,970,831‌)

(1,349,659,595‌)

1,135,062,865‌

NET

ASSETS

Total

increase

(decrease)

in

net

assets

...........................................

(6,185,806,006‌)

(980,548,646‌)

(2,034,901,737‌)

1,142,319,239‌

Beginning

of

year

..........................................................

23,891,304,458‌

24,871,853,104‌

8,599,403,256‌

7,457,084,017‌

End

of

year

..............................................................

$

17,705,498,452‌

$

23,891,304,458‌

$

6,564,501,519‌

$

8,599,403,256‌

(a)

Consolidated

Statements

of

Changes

in

Net

Assets.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

116

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Core

Bond

Portfolio

Institutional

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

9.88

‌

$

10.43

‌

$

9.92

‌

$

9.25

‌

$

9.65

‌

Net

investment

income

(a)

..........................

0.17

‌

0.14

‌

0.20

‌

0.28

‌

0.25

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.69

)

(0.14

)

0.53

‌

0.68

‌

(0.39

)

Net

increase

(decrease)

from

investment

operations

.........

(1.52

)

(0.00

)

0.73

‌

0.96

‌

(0.14

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.16

)

(0.19

)

(0.22

)

(0.29

)

(0.26

)

From

net

realized

gain

............................

(0.06

)

(0.36

)

—

‌

—

‌

—

‌

Return

of

capital

................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

................................

(0.24

)

(0.55

)

(0.22

)

(0.29

)

(0.26

)

Net

asset

value,

end

of

year

........................

$

8.12

‌

$

9.88

‌

$

10.43

‌

$

9.92

‌

$

9.25

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

...........................

(15.67

)%

(0.04

)%

7.42

%

10.52

%

(1.50

)%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

..................................

0.54

%

0.53

%

0.54

%

0.60

%

0.62

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

0.44

%

0.44

%

0.43

%

0.51

%

0.54

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

0.44

%

0.44

%

0.43

%

0.43

%

0.44

%

Net

investment

income

............................

1.82

%

1.35

%

1.98

%

2.94

%

2.61

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

2,350,703

‌

$

2,892,879

‌

$

2,608,893

‌

$

1,935,102

‌

$

1,762,677

‌

Portfolio

turnover

rate

(e)

.............................

533

%

585

%

692

%

684

%

658

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

337%

387%

488%

481%

455%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

117

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Core

Bond

Portfolio

Investor

A

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

9.89

‌

$

10.44

‌

$

9.93

‌

$

9.26

‌

$

9.66

‌

Net

investment

income

(a)

..........................

0.14

‌

0.11

‌

0.18

‌

0.26

‌

0.22

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.69

)

(0.14

)

0.52

‌

0.67

‌

(0.39

)

Net

increase

(decrease)

from

investment

operations

.........

(1.55

)

(0.03

)

0.70

‌

0.93

‌

(0.17

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.13

)

(0.16

)

(0.19

)

(0.26

)

(0.23

)

From

net

realized

gain

............................

(0.06

)

(0.36

)

—

‌

—

‌

—

‌

Return

of

capital

................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

................................

(0.21

)

(0.52

)

(0.19

)

(0.26

)

(0.23

)

Net

asset

value,

end

of

year

........................

$

8.13

‌

$

9.89

‌

$

10.44

‌

$

9.93

‌

$

9.26

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

...........................

(15.86

)%

(0.29

)%

7.15

%

10.24

%

(1.74

)%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

..................................

0.81

%

0.80

%

0.81

%

0.93

%

0.97

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

0.69

%

0.69

%

0.68

%

0.76

%

0.79

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

0.69

%

0.69

%

0.68

%

0.68

%

0.69

%

Net

investment

income

............................

1.56

%

1.10

%

1.75

%

2.69

%

2.36

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

358,179

‌

$

451,800

‌

$

532,706

‌

$

492,426

‌

$

427,610

‌

Portfolio

turnover

rate

(e)

.............................

533

%

585

%

692

%

684

%

658

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

337%

387%

488%

481%

455%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

118

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Core

Bond

Portfolio

Investor

C

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

9.84

‌

$

10.40

‌

$

9.89

‌

$

9.22

‌

$

9.62

‌

Net

investment

income

(a)

..........................

0.07

‌

0.04

‌

0.10

‌

0.19

‌

0.15

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.68

)

(0.16

)

0.53

‌

0.67

‌

(0.39

)

Net

increase

(decrease)

from

investment

operations

.........

(1.61

)

(0.12

)

0.63

‌

0.86

‌

(0.24

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.06

)

(0.08

)

(0.12

)

(0.19

)

(0.16

)

From

net

realized

gain

............................

(0.06

)

(0.36

)

—

‌

—

‌

—

‌

Return

of

capital

................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

................................

(0.14

)

(0.44

)

(0.12

)

(0.19

)

(0.16

)

Net

asset

value,

end

of

year

........................

$

8.09

‌

$

9.84

‌

$

10.40

‌

$

9.89

‌

$

9.22

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

...........................

(16.48

)%

(1.14

)%

6.37

%

9.45

%

(2.49

)%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

..................................

1.56

%

1.53

%

1.57

%

1.68

%

1.68

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

1.44

%

1.44

%

1.43

%

1.51

%

1.54

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

1.44

%

1.44

%

1.43

%

1.43

%

1.44

%

Net

investment

income

............................

0.77

%

0.36

%

1.02

%

1.96

%

1.63

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

14,300

‌

$

25,319

‌

$

36,599

‌

$

49,848

‌

$

61,437

‌

Portfolio

turnover

rate

(e)

.............................

533

%

585

%

692

%

684

%

658

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

337%

387%

488%

481%

455%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

119

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Core

Bond

Portfolio

Class

K

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

.....................

$

9.91

‌

$

10.46

‌

$

9.95

‌

$

9.28

‌

$

9.68

‌

Net

investment

income

(a)

...........................

0.17

‌

0.14

‌

0.21

‌

0.29

‌

0.25

‌

Net

realized

and

unrealized

gain

(loss)

..................

(1.70

)

(0.14

)

0.52

‌

0.67

‌

(0.39

)

Net

increase

(decrease)

from

investment

operations

..........

(1.53

)

0.00

‌

0.73

‌

0.96

‌

(0.14

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

........................

(0.16

)

(0.19

)

(0.22

)

(0.29

)

(0.26

)

From

net

realized

gain

.............................

(0.06

)

(0.36

)

—

‌

—

‌

—

‌

Return

of

capital

.................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

.................................

(0.24

)

(0.55

)

(0.22

)

(0.29

)

(0.26

)

Net

asset

value,

end

of

year

.........................

$

8.14

‌

$

9.91

‌

$

10.46

‌

$

9.95

‌

$

9.28

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

............................

(15.68

)%

0.02

%

7.46

%

10.55

%

(1.44

)%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

...................................

0.43

%

0.42

%

0.42

%

0.51

%

0.54

%

Total

expenses

after

fees

waived

and/or

reimbursed

..........

0.39

%

0.39

%

0.38

%

0.46

%

0.49

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

.................................

0.39

%

0.39

%

0.38

%

0.38

%

0.39

%

Net

investment

income

.............................

1.81

%

1.40

%

2.04

%

2.99

%

2.66

%

Supplemental

Data

Net

assets,

end

of

year

(000)

..........................

$

584,718

‌

$

952,547

‌

$

1,029,002

‌

$

829,549

‌

$

701,197

‌

Portfolio

turnover

rate

(e)

..............................

533

%

585

%

692

%

684

%

658

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

337%

387%

488%

481%

455%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

120

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(e)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Core

Bond

Portfolio

Class

R

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

9.89

‌

$

10.45

‌

$

9.94

‌

$

9.27

‌

$

9.67

‌

Net

investment

income

(a)

..........................

0.12

‌

0.09

‌

0.16

‌

0.23

‌

0.20

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.69

)

(0.15

)

0.52

‌

0.68

‌

(0.39

)

Net

increase

(decrease)

from

investment

operations

.........

(1.57

)

(0.06

)

0.68

‌

0.91

‌

(0.19

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.11

)

(0.14

)

(0.17

)

(0.24

)

(0.21

)

From

net

realized

gain

............................

(0.06

)

(0.36

)

—

‌

—

‌

—

‌

Return

of

capital

................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

................................

(0.19

)

(0.50

)

(0.17

)

(0.24

)

(0.21

)

Net

asset

value,

end

of

year

........................

$

8.13

‌

$

9.89

‌

$

10.45

‌

$

9.94

‌

$

9.27

‌

Total

Return

(c)

—

—

—

—

—

Based

on

net

asset

value

...........................

(16.07

)%

(0.64

)%

6.88

%

9.95

%

(1.98

)%

Ratios

to

Average

Net

Assets

(d)

Total

expenses

..................................

1.20

%

1.13

%

1.08

%

1.21

%

1.25

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

0.94

%

0.94

%

0.93

%

1.01

%

1.04

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

0.94

%

0.94

%

0.93

%

0.93

%

0.94

%

Net

investment

income

............................

1.32

%

0.87

%

1.54

%

2.45

%

2.13

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

1,084

‌

$

1,249

‌

$

2,023

‌

$

2,712

‌

$

2,921

‌

Portfolio

turnover

rate

(e)

.............................

533

%

585

%

692

%

684

%

658

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

337%

387%

488%

481%

455%

See

notes

to

financial

statements.

Consolidated

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

121

Financial

Highlights

BlackRock

High

Yield

Bond

Portfolio

Institutional

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

......................

$

7.89

‌

$

7.42

‌

$

7.68

‌

$

7.67

‌

$

7.85

‌

Net

investment

income

(a)

............................

0.37

‌

0.37

‌

0.40

‌

0.44

‌

0.42

‌

Net

realized

and

unrealized

gain

(loss)

...................

(1.38

)

0.48

‌

(0.24

)

0.02

‌

(0.16

)

Net

increase

(decrease)

from

investment

operations

...........

(1.01

)

0.85

‌

0.16

‌

0.46

‌

0.26

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.........................

(0.38

)

(0.38

)

(0.42

)

(0.45

)

(0.44

)

From

net

realized

gain

..............................

(0.00

)

(c)

—

‌

—

‌

—

‌

—

‌

Return

of

capital

..................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

..................................

(0.40

)

(0.38

)

(0.42

)

(0.45

)

(0.44

)

Net

asset

value,

end

of

year

..........................

$

6.48

‌

$

7.89

‌

$

7.42

‌

$

7.68

‌

$

7.67

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.............................

(13.21

)%

11.58

%

2.21

%

6.34

%

3.48

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

....................................

0.58

%

0.57

%

0.59

%

0.60

%

0.61

%

Total

expenses

after

fees

waived

and/or

reimbursed

...........

0.57

%

0.56

%

0.58

%

0.60

%

0.61

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

and

income

tax

.......................

0.57

%

0.56

%

0.58

%

0.60

%

0.61

%

Net

investment

income

..............................

5.03

%

4.73

%

5.37

%

5.89

%

5.49

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...........................

$

10,232,728

‌

$

14,197,255

‌

$

11,680,175

‌

$

10,693,110

‌

$

9,680,691

‌

Portfolio

turnover

rate

................................

67

%

76

%

119

%

102

%

90

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

See

notes

to

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

122

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees.

Excluding

the

recoupment

of

past

waived

and/or

reimbursed

fees,

the

expense

ratios

were

as

follows:

BlackRock

High

Yield

Bond

Portfolio

Service

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

......................

$

7.89

‌

$

7.43

‌

$

7.68

‌

$

7.67

‌

$

7.85

‌

Net

investment

income

(a)

............................

0.34

‌

0.35

‌

0.38

‌

0.42

‌

0.40

‌

Net

realized

and

unrealized

gain

(loss)

...................

(1.37

)

0.46

‌

(0.23

)

0.02

‌

(0.16

)

Net

increase

(decrease)

from

investment

operations

...........

(1.03

)

0.81

‌

0.15

‌

0.44

‌

0.24

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.........................

(0.36

)

(0.35

)

(0.40

)

(0.43

)

(0.42

)

From

net

realized

gain

..............................

(0.00

)

(c)

—

‌

—

‌

—

‌

—

‌

Return

of

capital

..................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

..................................

(0.38

)

(0.35

)

(0.40

)

(0.43

)

(0.42

)

Net

asset

value,

end

of

year

..........................

$

6.48

‌

$

7.89

‌

$

7.43

‌

$

7.68

‌

$

7.67

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.............................

(13.46

)%

11.11

%

2.08

%

6.06

%

3.19

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

(f)

...................................

0.87

%

0.86

%

0.86

%

0.87

%

0.90

%

Total

expenses

after

fees

waived

and/or

reimbursed

...........

0.86

%

0.85

%

0.85

%

0.87

%

0.89

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

and

income

tax

.......................

0.86

%

0.85

%

0.85

%

0.87

%

0.89

%

Net

investment

income

..............................

4.64

%

4.45

%

5.13

%

5.64

%

5.20

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...........................

$

80,995

‌

$

133,295

‌

$

125,536

‌

$

154,658

‌

$

176,188

‌

Portfolio

turnover

rate

................................

67

%

76

%

119

%

102

%

90

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Expense

ratios

...............................................

N/A  

N/A  

N/A  

N/A  

0

.90%

See

notes

to

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

123

Financial

Highlights

BlackRock

High

Yield

Bond

Portfolio

Investor

A

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

......................

$

7.88

‌

$

7.42

‌

$

7.68

‌

$

7.67

‌

$

7.85

‌

Net

investment

income

(a)

............................

0.35

‌

0.34

‌

0.38

‌

0.42

‌

0.40

‌

Net

realized

and

unrealized

gain

(loss)

...................

(1.38

)

0.47

‌

(0.25

)

0.02

‌

(0.16

)

Net

increase

(decrease)

from

investment

operations

...........

(1.03

)

0.81

‌

0.13

‌

0.44

‌

0.24

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.........................

(0.36

)

(0.35

)

(0.39

)

(0.43

)

(0.42

)

From

net

realized

gain

..............................

(0.00

)

(c)

—

‌

—

‌

—

‌

—

‌

Return

of

capital

..................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

..................................

(0.38

)

(0.35

)

(0.39

)

(0.43

)

(0.42

)

Net

asset

value,

end

of

year

..........................

$

6.47

‌

$

7.88

‌

$

7.42

‌

$

7.68

‌

$

7.67

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.............................

(13.52

)%

11.06

%

1.90

%

6.00

%

3.15

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

....................................

0.92

%

0.91

%

0.90

%

0.94

%

0.96

%

Total

expenses

after

fees

waived

and/or

reimbursed

...........

0.91

%

0.90

%

0.89

%

0.92

%

0.93

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

and

income

tax

.......................

0.91

%

0.90

%

0.89

%

0.92

%

0.93

%

Net

investment

income

..............................

4.72

%

4.40

%

5.09

%

5.58

%

5.17

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...........................

$

1,088,100

‌

$

1,408,666

‌

$

1,298,176

‌

$

1,329,156

‌

$

1,326,541

‌

Portfolio

turnover

rate

................................

67

%

76

%

119

%

102

%

90

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

See

notes

to

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

124

BlackRock

High

Yield

Bond

Portfolio

Investor

C

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

......................

$

7.90

‌

$

7.43

‌

$

7.69

‌

$

7.68

‌

$

7.86

‌

Net

investment

income

(a)

............................

0.29

‌

0.29

‌

0.33

‌

0.37

‌

0.35

‌

Net

realized

and

unrealized

gain

(loss)

...................

(1.38

)

0.48

‌

(0.25

)

0.02

‌

(0.16

)

Net

increase

(decrease)

from

investment

operations

...........

(1.09

)

0.77

‌

0.08

‌

0.39

‌

0.19

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.........................

(0.31

)

(0.30

)

(0.34

)

(0.38

)

(0.37

)

From

net

realized

gain

..............................

(0.00

)

(c)

—

‌

—

‌

—

‌

—

‌

Return

of

capital

..................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

..................................

(0.33

)

(0.30

)

(0.34

)

(0.38

)

(0.37

)

Net

asset

value,

end

of

year

..........................

$

6.48

‌

$

7.90

‌

$

7.43

‌

$

7.69

‌

$

7.68

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.............................

(14.18

)%

10.46

%

1.19

%

5.25

%

2.43

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

....................................

1.58

%

1.57

%

1.61

%

1.64

%

1.64

%

Total

expenses

after

fees

waived

and/or

reimbursed

...........

1.58

%

1.56

%

1.60

%

1.64

%

1.63

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

and

income

tax

.......................

1.58

%

1.56

%

1.60

%

1.64

%

1.63

%

Net

investment

income

..............................

3.98

%

3.74

%

4.39

%

4.87

%

4.47

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...........................

$

95,815

‌

$

159,580

‌

$

186,558

‌

$

262,204

‌

$

329,005

‌

Portfolio

turnover

rate

................................

67

%

76

%

119

%

102

%

90

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

See

notes

to

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

125

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees.

Excluding

the

recoupment

of

past

waived

and/or

reimbursed

fees,

the

expense

ratios

were

as

follows:

BlackRock

High

Yield

Bond

Portfolio

Class

K

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

......................

$

7.89

‌

$

7.43

‌

$

7.68

‌

$

7.68

‌

$

7.85

‌

Net

investment

income

(a)

............................

0.37

‌

0.38

‌

0.40

‌

0.45

‌

0.43

‌

Net

realized

and

unrealized

gain

(loss)

...................

(1.37

)

0.46

‌

(0.22

)

0.01

‌

(0.15

)

Net

increase

(decrease)

from

investment

operations

...........

(1.00

)

0.84

‌

0.18

‌

0.46

‌

0.28

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.........................

(0.39

)

(0.38

)

(0.43

)

(0.46

)

(0.45

)

From

net

realized

gain

..............................

(0.00

)

(c)

—

‌

—

‌

—

‌

—

‌

Return

of

capital

..................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

..................................

(0.41

)

(0.38

)

(0.43

)

(0.46

)

(0.45

)

Net

asset

value,

end

of

year

..........................

$

6.48

‌

$

7.89

‌

$

7.43

‌

$

7.68

‌

$

7.68

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.............................

(13.12

)%

11.53

%

2.46

%

6.32

%

3.73

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

(f)

...................................

0.49

%

0.48

%

0.48

%

0.49

%

0.50

%

Total

expenses

after

fees

waived

and/or

reimbursed

...........

0.48

%

0.47

%

0.47

%

0.49

%

0.50

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

and

income

tax

.......................

0.48

%

0.47

%

0.47

%

0.49

%

0.50

%

Net

investment

income

..............................

5.09

%

4.86

%

5.40

%

5.99

%

5.59

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...........................

$

6,116,737

‌

$

7,883,370

‌

$

11,470,944

‌

$

4,644,939

‌

$

4,312,394

‌

Portfolio

turnover

rate

................................

67

%

76

%

119

%

102

%

90

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Expense

ratios

...............................................

N/A  

N/A  

N/A  

0

.49%

0

.50%

See

notes

to

financial

statements.

Consolidated

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

126

BlackRock

High

Yield

Bond

Portfolio

Class

R

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

......................

$

7.89

‌

$

7.42

‌

$

7.68

‌

$

7.67

‌

$

7.85

‌

Net

investment

income

(a)

............................

0.33

‌

0.32

‌

0.36

‌

0.40

‌

0.38

‌

Net

realized

and

unrealized

gain

(loss)

...................

(1.39

)

0.48

‌

(0.25

)

0.02

‌

(0.16

)

Net

increase

(decrease)

from

investment

operations

...........

(1.06

)

0.80

‌

0.11

‌

0.42

‌

0.22

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.........................

(0.34

)

(0.33

)

(0.37

)

(0.41

)

(0.40

)

From

net

realized

gain

..............................

(0.00

)

(c)

—

‌

—

‌

—

‌

—

‌

Return

of

capital

..................................

(0.02

)

—

‌

—

‌

—

‌

—

‌

Total

distributions

..................................

(0.36

)

(0.33

)

(0.37

)

(0.41

)

(0.40

)

Net

asset

value,

end

of

year

..........................

$

6.47

‌

$

7.89

‌

$

7.42

‌

$

7.68

‌

$

7.67

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.............................

(13.84

)%

10.94

%

1.64

%

5.69

%

2.83

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

....................................

1.16

%

1.15

%

1.16

%

1.22

%

1.24

%

Total

expenses

after

fees

waived

and/or

reimbursed

...........

1.16

%

1.14

%

1.15

%

1.21

%

1.24

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

and

income

tax

.......................

1.16

%

1.14

%

1.15

%

1.21

%

1.24

%

Net

investment

income

..............................

4.51

%

4.16

%

4.84

%

5.28

%

4.86

%

Supplemental

Data

Net

assets,

end

of

year

(000)

...........................

$

91,124

‌

$

109,138

‌

$

110,465

‌

$

125,710

‌

$

128,584

‌

Portfolio

turnover

rate

................................

67

%

76

%

119

%

102

%

90

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

127

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees

with

no

financial

impact

to

the

expense

ratios.

(h)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Low

Duration

Bond

Portfolio

Institutional

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

9.72

‌

$

9.71

‌

$

9.64

‌

$

9.47

‌

$

9.63

‌

Net

investment

income

(a)

.........................

0.15

‌

0.12

‌

0.19

‌

0.25

‌

0.21

‌

Net

realized

and

unrealized

gain

(loss)

................

(0.79

)

0.02

‌

0.09

‌

0.18

‌

(0.14

)

Net

increase

(decrease)

from

investment

operations

........

(0.64

)

0.14

‌

0.28

‌

0.43

‌

0.07

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.17

)

(0.13

)

(0.21

)

(0.26

)

(0.21

)

Return

of

capital

...............................

—

‌

—

‌

(0.00

)

(c)

(0.00

)

(c)

(0.02

)

Total

distributions

...............................

(0.17

)

(0.13

)

(0.21

)

(0.26

)

(0.23

)

Net

asset

value,

end

of

year

.......................

$

8.91

‌

$

9.72

‌

$

9.71

‌

$

9.64

‌

$

9.47

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

..........................

(6.61

)%

1.47

%

3.00

%

4.59

%

(e)

0.69

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.................................

0.43

%

0.44

%

0.45

%

0.45

%

0.52

%

(g)

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.40

%

0.40

%

0.41

%

0.40

%

0.48

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.40

%

0.40

%

0.40

%

0.40

%

0.40

%

Net

investment

income

...........................

1.58

%

1.20

%

2.03

%

2.60

%

2.21

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

4,789,552

‌

$

6,395,606

‌

$

5,375,701

‌

$

5,374,564

‌

$

4,274,410

‌

Portfolio

turnover

rate

(h)

............................

163

%

129

%

213

%

182

%

218

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

153%

125%

170%

144%

169%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

128

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Low

Duration

Bond

Portfolio

Investor

A

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

9.72

‌

$

9.71

‌

$

9.63

‌

$

9.47

‌

$

9.63

‌

Net

investment

income

(a)

.........................

0.13

‌

0.09

‌

0.17

‌

0.22

‌

0.18

‌

Net

realized

and

unrealized

gain

(loss)

................

(0.80

)

0.03

‌

0.10

‌

0.17

‌

(0.14

)

Net

increase

(decrease)

from

investment

operations

........

(0.67

)

0.12

‌

0.27

‌

0.39

‌

0.04

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.15

)

(0.11

)

(0.19

)

(0.23

)

(0.18

)

Return

of

capital

...............................

—

‌

—

‌

(0.00

)

(c)

(0.00

)

(c)

(0.02

)

Total

distributions

...............................

(0.15

)

(0.11

)

(0.19

)

(0.23

)

(0.20

)

Net

asset

value,

end

of

year

.......................

$

8.90

‌

$

9.72

‌

$

9.71

‌

$

9.63

‌

$

9.47

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

..........................

(6.95

)%

1.22

%

2.85

%

4.23

%

(e)

0.43

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.................................

0.74

%

0.74

%

0.76

%

0.78

%

0.88

%

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.65

%

0.65

%

0.66

%

0.65

%

0.74

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.65

%

0.65

%

0.65

%

0.65

%

0.66

%

Net

investment

income

...........................

1.34

%

0.96

%

1.77

%

2.35

%

1.94

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

916,865

‌

$

1,199,702

‌

$

1,412,985

‌

$

1,318,473

‌

$

1,267,494

‌

Portfolio

turnover

rate

(g)

............................

163

%

129

%

213

%

182

%

218

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

153%

125%

170%

144%

169%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

129

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Low

Duration

Bond

Portfolio

Investor

A1

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

9.73

‌

$

9.71

‌

$

9.64

‌

$

9.48

‌

$

9.64

‌

Net

investment

income

(a)

.........................

0.14

‌

0.11

‌

0.19

‌

0.24

‌

0.20

‌

Net

realized

and

unrealized

gain

(loss)

................

(0.80

)

0.03

‌

0.09

‌

0.17

‌

(0.14

)

Net

increase

(decrease)

from

investment

operations

........

(0.66

)

0.14

‌

0.28

‌

0.41

‌

0.06

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.16

)

(0.12

)

(0.21

)

(0.25

)

(0.20

)

Return

of

capital

...............................

—

‌

—

‌

(0.00

)

(c)

(0.00

)

(c)

(0.02

)

Total

distributions

...............................

(0.16

)

(0.12

)

(0.21

)

(0.25

)

(0.22

)

Net

asset

value,

end

of

year

.......................

$

8.91

‌

$

9.73

‌

$

9.71

‌

$

9.64

‌

$

9.48

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

..........................

(6.80

)%

1.48

%

2.90

%

4.38

%

(e)

0.59

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.................................

0.62

%

0.59

%

0.60

%

0.59

%

0.70

%

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.50

%

0.50

%

0.51

%

0.50

%

0.59

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.50

%

0.50

%

0.50

%

0.50

%

0.51

%

Net

investment

income

...........................

1.50

%

1.13

%

1.93

%

2.51

%

2.09

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

5,134

‌

$

6,710

‌

$

8,141

‌

$

8,621

‌

$

9,492

‌

Portfolio

turnover

rate

(g)

............................

163

%

129

%

213

%

182

%

218

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

153%

125%

170%

144%

169%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

130

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Low

Duration

Bond

Portfolio

Investor

C

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

..................

$

9.72

‌

$

9.70

‌

$

9.63

‌

$

9.46

‌

$

9.63

‌

Net

investment

income

(a)

........................

0.05

‌

0.02

‌

0.10

‌

0.15

‌

0.11

‌

Net

realized

and

unrealized

gain

(loss)

...............

(0.79

)

0.04

‌

0.09

‌

0.18

‌

(0.15

)

Net

increase

(decrease)

from

investment

operations

.......

(0.74

)

0.06

‌

0.19

‌

0.33

‌

(0.04

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.....................

(0.08

)

(0.04

)

(0.12

)

(0.16

)

(0.11

)

Return

of

capital

..............................

—

‌

—

‌

(0.00

)

(c)

(0.00

)

(c)

(0.02

)

Total

distributions

..............................

(0.08

)

(0.04

)

(0.12

)

(0.16

)

(0.13

)

Net

asset

value,

end

of

year

......................

$

8.90

‌

$

9.72

‌

$

9.70

‌

$

9.63

‌

$

9.46

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

.........................

(7.65

)%

0.57

%

1.98

%

3.56

%

(e)

(0.42

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

................................

1.45

%

1.45

%

1.50

%

1.52

%

1.62

%

Total

expenses

after

fees

waived

and/or

reimbursed

.......

1.40

%

1.40

%

1.41

%

1.40

%

1.49

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

.......................

1.40

%

1.40

%

1.40

%

1.40

%

14.10

%

Net

investment

income

..........................

0.58

%

0.23

%

1.05

%

1.61

%

1.18

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.......................

$

36,103

‌

$

51,625

‌

$

69,913

‌

$

152,890

‌

$

172,631

‌

Portfolio

turnover

rate

(g)

...........................

163

%

129

%

213

%

182

%

218

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

153%

125%

170%

144%

169%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

131

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Low

Duration

Bond

Portfolio

Class

K

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

9.72

‌

$

9.70

‌

$

9.63

‌

$

9.46

‌

$

9.62

‌

Net

investment

income

(a)

.........................

0.15

‌

0.12

‌

0.20

‌

0.25

‌

0.22

‌

Net

realized

and

unrealized

gain

(loss)

................

(0.79

)

0.04

‌

0.09

‌

0.18

‌

(0.15

)

Net

increase

(decrease)

from

investment

operations

........

(0.64

)

0.16

‌

0.29

‌

0.43

‌

0.07

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.18

)

(0.14

)

(0.22

)

(0.26

)

(0.21

)

Return

of

capital

...............................

—

‌

—

‌

(0.00

)

(c)

(0.00

)

(c)

(0.02

)

Total

distributions

...............................

(0.18

)

(0.14

)

(0.22

)

(0.26

)

(0.23

)

Net

asset

value,

end

of

year

.......................

$

8.90

‌

$

9.72

‌

$

9.70

‌

$

9.63

‌

$

9.46

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

..........................

(6.67

)%

1.63

%

3.05

%

4.65

%

(e)

0.73

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.................................

0.37

%

0.37

%

0.38

%

0.37

%

0.46

%

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.35

%

0.36

%

0.36

%

0.35

%

0.44

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.35

%

0.36

%

0.35

%

0.35

%

0.35

%

Net

investment

income

...........................

1.65

%

1.23

%

2.07

%

2.64

%

2.27

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

814,127

‌

$

943,607

‌

$

557,997

‌

$

512,940

‌

$

258,340

‌

Portfolio

turnover

rate

(g)

............................

163

%

129

%

213

%

182

%

218

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

153%

125%

170%

144%

169%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

132

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Low

Duration

Bond

Portfolio

Class

R

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

9.72

‌

$

9.70

‌

$

9.63

‌

$

9.47

‌

$

9.63

‌

Net

investment

income

(a)

.........................

0.11

‌

0.07

‌

0.15

‌

0.20

‌

0.16

‌

Net

realized

and

unrealized

gain

(loss)

................

(0.80

)

0.03

‌

0.09

‌

0.17

‌

(0.14

)

Net

increase

(decrease)

from

investment

operations

........

(0.69

)

0.10

‌

0.24

‌

0.37

‌

0.02

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.13

)

(0.08

)

(0.17

)

(0.21

)

(0.16

)

Return

of

capital

...............................

—

‌

—

‌

(0.00

)

(c)

(0.00

)

(c)

(0.02

)

Total

distributions

...............................

(0.13

)

(0.08

)

(0.17

)

(0.21

)

(0.18

)

Net

asset

value,

end

of

year

.......................

$

8.90

‌

$

9.72

‌

$

9.70

‌

$

9.63

‌

$

9.47

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

..........................

(7.18

)%

1.07

%

2.49

%

3.97

%

(e)

0.18

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

.................................

1.09

%

1.07

%

1.08

%

1.18

%

1.24

%

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.90

%

0.91

%

0.91

%

0.90

%

0.99

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.90

%

0.91

%

0.90

%

0.90

%

0.91

%

Net

investment

income

...........................

1.17

%

0.72

%

1.54

%

2.10

%

1.69

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

2,721

‌

$

2,153

‌

$

2,405

‌

$

3,949

‌

$

4,493

‌

Portfolio

turnover

rate

(g)

............................

163

%

129

%

213

%

182

%

218

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

153%

125%

170%

144%

169%

See

notes

to

financial

statements.

Notes

to

Financial

Statements

133

Notes

to

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

V (the

“Trust”)

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

an

open-end

management

investment

company.

The

Trust

is

organized

as

a

Massachusetts

business trust.

The

following,

each

of

which

is

a

series

of

the

Trust, are

referred

to

herein

collectively

as

the

“Funds”

or

individually

as

a

“Fund”:

Each

Fund

offers

multiple

classes

of

shares.

All

classes

of

shares

have

identical

voting,

dividend,

liquidation

and

other

rights

and

are

subject

to

the

same

terms

and

conditions,

except

that

certain

classes

bear

expenses

related

to

the

shareholder

servicing

and

distribution

of

such

shares.

Institutional,

Service

and

Class

K

shares

are

sold

only

to

certain

eligible

investors.

Service,

Investor

A,

Investor

A1,

Investor C

and

Class

R

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares,

and

Investor

C

and

Class R

Shares

also

bear

certain

expenses

related

to

the

distribution

of

such

shares.

Investor

A

and

Investor

C

Shares

are

generally

available

through

financial

intermediaries.

Investor

A1

Shares

are

only

available

for

dividend

and

capital

gain

reinvestment

by

existing

shareholders,

and

for

purchase

by

certain

employer-

sponsored

retirement

plans.

Class

R

Shares

are

sold

without

a

sales

charge

and

only

to

certain

employer-sponsored

retirement

plans.

Each

class

has

exclusive

voting

rights

with

respect

to

matters

relating

to

its

shareholder

servicing

and

distribution

expenditures

(except

that

Investor

C

shareholders

may

vote

on

material

changes

to

the

Investor

A

Shares

distribution

and

service

plan).

The

Funds,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

“Manager”) or

its

affiliates,

are

included

in

a

complex

of

open-end

non-index

fixed-income

funds

and

all

BlackRock-advised

closed-end

funds

referred

to

as

the

BlackRock

Fixed-Income

Complex.

Basis

of

Consolidation:

 The

accompanying

consolidated

financial

statements

of

High

Yield

Bond

include

the

accounts

of

BR-HIYLD

Subsidiary

II,

LLC

(the

“Taxable

Subsidiary”),

which

is

a

wholly-owned

taxable

subsidiary

of

High

Yield

Bond.

The

Taxable

Subsidiary

enables

High

Yield

Bond

to

hold

investments

in

operating

companies

and

still

satisfy

regulated

investment

company

tax

requirements.

Income

earned

and

gains

realized

on

the

investments

held

by

the

Taxable

Subsidiary

are

taxable

to

such

subsidiary.

A

tax

provision

for

income,

if

any,

is

shown

as

income

tax

in

the

Consolidated

Statement

of

Operations

for

High

Yield

Bond.

A

tax

provision

for

realized

and

unrealized

gains,

if

any,

is

included

as

a

reduction

of

realized

and/or

unrealized

gain

(loss)

in

the

Consolidated

Statement

of

Operations

for

High

Yield

Bond.

High

Yield

Bond

may

invest

up

to

25%

of

its

total

assets

in

the

Taxable

Subsidiary.

The

net

assets

of

the

Taxable

Subsidiary

as

of

period

end

were

$5,891,091,

which

is

less

than

0.1%

of

High

Yield

Bond’s

consolidated

net

assets.

Intercompany

accounts

and

transactions,

if

any,

have

been

eliminated.

The

Taxable

Subsidiary

is

subject

to

the

same

investment

policies

and

restrictions

that

apply

to

High

Yield

Bond.

The

accompanying

consolidated

financial

statements

of

High

Yield

Bond

include

the

accounts

of

BLK

BR

HY

(Luxembourg)

Investments

S.a.r.l

(the

“Luxembourg

Subsidiary”).

Effective

August

31,

2022

the

Luxembourg

Subsidiary,

which

was

wholly-owned

by

the

Fund,

was

dissolved.

The

Luxembourg

Subsidiary

held

shares

of

private

Canadian

companies.

Such

shares

were

held

in

the

Luxembourg

Subsidiary

in

order

to

realize

benefits

under

the

Double

Tax

Avoidance

Convention

between

Canada

and

Luxembourg,

the

result

of

which

that

gains

on

the

sale

of

such

shares

will

generally

not

be

subject

to

capital

gains

taxes

in

Canada.

Income

earned

on

the

investment

held

by

the

Luxembourg

Subsidiary

may

be

taxable

to

such

subsidiary

in

Luxembourg.

A

tax

provision

for

income,

if

any,

is

shown

as

income

tax

in

the

Consolidated

Statement

of

Operations

for

High

Yield

Bond.

A

tax

provision

for

realized

gains,

if

any,

is

included

as

a

reduction

of

realized

gain

(loss)

in

the

Consolidated

Statement

of

Operations

for

High

Yield

Bond. 

2.

SIGNIFICANT

ACCOUNTING

POLICIES

The

financial

statements

are

prepared

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(“U.S.

GAAP”),

which

may

require

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

in

the

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

increases

and

decreases

in

net

assets

from

operations

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Each

Fund

is

considered

an

investment

company

under

U.S.

GAAP

and

follows

the

accounting

and

reporting

guidance

applicable

to

investment

companies.

Below

is

a

summary

of

significant

accounting

policies: 

Investment

Transactions

and

Income

Recognition:

For

financial

reporting

purposes,

investment

transactions

are

recorded

on

the

dates

the

transactions

are

executed

(the

“trade

dates”).

Realized

gains

and

losses

on

investment

transactions

are

determined

using

the

specific

identification

method.

Dividend

income

and

capital

gain

distributions,

if

any,

are

recorded

on

the

ex-dividend

dates.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

dates

at

fair

value.

Dividends

from

foreign

securities

where

the

Fund

Name

Herein

Referred

To

As

Diversification

Classification

BlackRock

Core

Bond

Portfolio

...............................................

Core

Bond

Diversified

BlackRock

High

Yield

Bond

Portfolio

............................................

High

Yield

Bond

Diversified

BlackRock

Low

Duration

Bond

Portfolio

..........................................

Low

Duration

Bond

Diversified

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

("CDSC")

Conversion

Privilege

Institutional,

Service,

Class

K

and

Class

R

Shares

..........................

No

No

None

Investor

A

Shares

..............................................

Yes

No

(a)

None

Investor

A1

Shares

.............................................

No

(b)

No

(c)

None

Investor

C

Shares

.............................................

No

Yes

(d)

To

Investor

A

Shares

after

approximately

8

years

(a)

Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

(b)

Investor

A1

Shares

are

subject

to

a

maximum

sales

charge

on

purchases

of

1.00%.

The

sales

charge

does

not

apply

to

dividend

and

capital

gain

reinvestments

by

existing

shareholders

and

new

purchases

for

certain

employer-sponsored

retirement

plans,

which

are

currently

the

only

investors

who

may

invest

in

Investor

A1

Shares.

(c)

Investor

A1

Shares

may

be

subject

to

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

However,

the

CDSC

does

not

apply

to

redemptions

by

certain

employer-sponsored

retirement

plans

or

to

redemptions

of

shares

acquired

through

reinvestment

of

dividends

and

capital

gains

by

existing

shareholders.

(d)

A

CDSC

of

1.00%

is

assessed

on

certain

redemptions

of

Investor

C

Shares

made

within

one

year

after

purchase.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

134

ex-dividend

dates

may

have

passed

are

subsequently

recorded

when

the

Funds

are

informed

of

the

ex-dividend

dates.

Under

the

applicable

foreign

tax

laws,

a

withholding

tax

at

various

rates

may

be

imposed

on

capital

gains,

dividends

and

interest.

Upon

notification

from

issuers,

a

portion

of

the

dividend

income

received

from

a

real

estate

investment

trust

may

be

redesignated

as

a

reduction

of

cost

of

the

related

investment

and/or

realized

gain.

Interest

income,

including

amortization

and

accretion

of

premiums

and

discounts

on

debt

securities

and

payment-in-kind

interest,

are

recognized

daily

on

an

accrual

basis.

Income,

expenses

and

realized

and

unrealized

gains

and

losses

are

allocated

daily

to

each

class

based

on

its

relative

net

assets. For

convertible

securities,

premiums

attributable

to

the

debt

instrument

are

amortized,

but

premiums

attributable

to

the

conversion

feature

are

not

amortized.

Foreign

Currency

Translation:

Each

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”).

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

Each

Fund

does

not

isolate

the

effect

of

fluctuations

in

foreign

exchange

rates

from

the

effect

of

fluctuations

in

the

market

prices

of

investments

for

financial

reporting

purposes.

Accordingly,

the

effects

of

changes

in

exchange

rates

on

investments

are

not

segregated

in

the

Statements

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

Each

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Foreign

Taxes:

The

Funds

may

be

subject

to

foreign

taxes

(a

portion

of

which

may

be

reclaimable)

on

income,

stock

dividends,

capital

gains

on

investments,

or

certain

foreign

currency

transactions.

All

foreign

taxes

are

recorded

in

accordance

with

the

applicable

foreign

tax

regulations

and

rates

that

exist

in

the

foreign

jurisdictions

in

which

each

Fund

invests.

These

foreign

taxes,

if

any,

are

paid

by

each

Fund

and

are

reflected

in

its

Statements

of

Operations

as

follows:

foreign

taxes

withheld

at

source

are

presented

as

a

reduction

of

income,

foreign

taxes

on

securities

lending

income

are

presented

as

a

reduction

of

securities

lending

income,

foreign

taxes

on

stock

dividends

are

presented

as

“Foreign

taxes

withheld”,

and

foreign

taxes

on

capital

gains

from

sales

of

investments

and

foreign

taxes

on

foreign

currency

transactions

are

included

in

their

respective

net

realized

gain

(loss)

categories.

Foreign

taxes

payable

or

deferred

as

of

September

30,

2022

,

if

any,

are

disclosed

in

the Statements

of

Assets

and

Liabilities.

The

Funds

file

withholding

tax

reclaims

in

certain

jurisdictions

to

recover

a

portion

of

amounts

previously

withheld.

The

Funds

may

record

a

reclaim

receivable

based

on

collectability,

which

includes

factors

such

as

the

jurisdiction’s

applicable

laws,

payment

history

and

market

convention.

The

Statements

of

Operations

include

tax

reclaims

recorded

as

well

as

professional

and

other

fees,

if

any,

associated

with

recovery

of

foreign

withholding

taxes. 

Collateralization:

If

required

by

an

exchange

or

counterparty

agreement,

the

Funds

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-

dealer

or

custodian

as

collateral

for

certain

investments.  

Distributions:

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly.

Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

dates

and

made

at

least

annually.

The

portion

of

distributions,

if

any,

that

exceeds

a

fund’s

current

and

accumulated

earnings

and

profits,

as

measured

on

a

tax

basis,

constitute

a

non-taxable

return

of

capital. The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP

.

Deferred

Compensation

Plan:

Under

the

Deferred

Compensation

Plan

(the

“Plan”)

approved

by

the

Board

of

Trustees

of

the

Trust

(the

“Board”), the 

trustees

who

are

not

“interested

persons”

of

the

Funds,

as

defined

in

the

1940

Act

(“Independent

Trustees

”),

may

defer

a

portion

of

their

annual

complex-wide

compensation.

Deferred

amounts

earn

an

approximate

return

as

though

equivalent

dollar

amounts

had

been

invested

in

common

shares

of

certain

funds

in

the

BlackRock

Fixed-Income

Complex

selected

by

the

Independent

Trustees

.

This

has

the

same

economic

effect

for

the

Independent 

Trustees

as

if

the

Independent 

Trustees

had

invested

the

deferred

amounts

directly

in

certain

funds

in

the

BlackRock

Fixed-Income

Complex.  

The

Plan

is

not

funded

and

obligations

thereunder

represent

general

unsecured

claims

against

the

general

assets

of

each

Fund,

as

applicable.

Deferred

compensation

liabilities,

if

any, are

included

in

the

Trustees’

and

Officer’s

fees

payable

in

the

Statements

of

Assets

and

Liabilities

and

will

remain

as

a

liability

of

the

Funds

until

such

amounts

are

distributed

in

accordance

with

the

Plan. Net

appreciation

(depreciation)

in

the

value

of

participants’

deferral

accounts

is

allocated

among

the

participating

funds

in

the

BlackRock

Fixed-Income

Complex

and

reflected

as

Trustee

and

Officer

expense

on

the

Statements

of

Operations.

The

Trustee

and

Officer

expense

may

be

negative

as

a

result

of

a

decrease

in

value

of

the

deferred

accounts.

Indemnifications:

In

the

normal

course

of

business,

a

Fund

enters

into

contracts

that

contain

a

variety

of

representations

that

provide

general

indemnification.

A

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

because

it

involves

future

potential

claims

against

a

Fund,

which

cannot

be

predicted

with

any

certainty.

Other:

Expenses

directly

related

to

a

Fund

or

its

classes

are

charged

to

that

Fund

or

the

applicable

class.

Expenses

directly

related

to

the

Funds

and

other

shared

expenses

prorated

to

the

Funds

are

allocated

daily

to

each

class

based

on

their

relative

net

assets

or

other

appropriate

methods.

Other

operating

expenses

shared

by

several

funds,

including

other

funds

managed

by

the

Manager,

are

prorated

among

those

funds

on

the

basis

of

relative

net

assets

or

other

appropriate

methods. 

3.

INVESTMENT

VALUATION

AND

FAIR

VALUE

MEASUREMENTS 

Investment

Valuation

Policies:

 Each

Fund’s

investments

are

valued

at

fair

value

(also

referred

to

as

“market

value”

within

the

financial

statements)

each

day

that

the

Fund

is

open

for

business

and,

for

financial

reporting

purposes,

as

of

the

report

date.

U.S.

GAAP

defines

fair

value

as

the

price

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Board

of

each

Fund

has

approved

the

designation

of

each

Fund’s

Manager

as

the

valuation

designee

for

each

Fund.

Each

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

the

Managers’

policies.

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value.

The

Manager

has

formed

a

committee

(the

“Valuation

Committee”)

to

develop

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments,

with

assistance

from

other

BlackRock

pricing

committees.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

each

Fund’s

assets

and

liabilities: 

Notes

to

Financial

Statements

(continued)

135

Notes

to

Financial

Statements

Equity

investments

traded

on

a

recognized

securities

exchange

are

valued

at

that

day’s official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

Equity

investments

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services. Floating

rate

loan

interests

are

valued

at

the

mean

of

the

bid

prices

from

one

or

more

independent

brokers

or

dealers

as

obtained

from

a

third-party

pricing

service. Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day’s

published net

asset

value

(“NAV”).

High

Yield

Bond

values

its

investment

in

SL

Liquidity

Series,

LLC,

Money

Market

Series

(the

“Money

Market

Series”)

at

fair

value,

which

is

ordinarily

based

upon

its

pro

rata

ownership

in

the

underlying

fund’s

net

assets.

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

or

trade price

on

the

exchange

where

the

contract

is

traded.

Forward

foreign

currency

exchange

contracts

are

valued

at

the

mean

between

the

bid

and

ask

prices

and

are

determined

as

of

the

close

of

trading

on

the

NYSE

based

on

that

day’s

prevailing

forward

exchange

rate

for

the

underlying

currencies.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day’s

price will

be

used,

unless

it

is

determined

that

the

prior

day’s

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

Generally,

trading

in

foreign

instruments

is

substantially

completed

each

day

at

various

times

prior

to

the

close

of

trading

on

the

NYSE.

Each

business

day,

the

Funds

use

current

market

factors

supplied

by

independent

pricing

services

to

value

certain

foreign

instruments

(“Systematic

Fair

Value

Price”).

The

Systematic

Fair

Value

Price

is

designed

to

value

such

foreign

securities

at

fair

value

as

of

the

close

of

trading

on

the

NYSE,

which

follows

the

close

of

the

local

markets.

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Valuation

Committee

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Valuation

Committee

seeks

to

determine

the

price

that

each

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Valuation

Committee,

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

136

For

investments

in

equity

or

debt

issued

by

privately

held

companies

or

funds

(“Private

Company”

or

collectively,

the

“Private

Companies”)

and

other

Fair

Valued

Investments,

the

fair

valuation

approaches

that

are

used

by

the

Valuation

Committee

and

third-party

pricing

services

utilized

by

the

Valuation

Committee

include one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

Investments

in

series

of

preferred

stock

issued

by

Private

Companies

are

typically

valued

utilizing

market

approach

in

determining

the

enterprise

value

of

the

company.

Such

investments

often

contain

rights

and

preferences

that

differ

from

other

series

of

preferred

and

common

stock

of

the

same

issuer.

Enterprise

valuation

techniques

such

as

an

option

pricing

model

(“OPM”),

a

probability

weighted

expected

return

model

(“PWERM”),

current

value

method or

a

hybrid

of

those

techniques

are

used

as

deemed

appropriate

under

the

circumstances.

The

use

of these

valuation techniques

involve

a

determination

of

the

exit

scenarios

of

the

investment

in

order

to

appropriately

allocate

the

enterprise

value

of

the

company

among

the

various

parts

of

its

capital

structure. 

The

Private

Companies

are

not

subject

to

the

public

company

disclosure,

timing,

and

reporting

standards

applicable

to other

investments

held

by

a

Fund.

Typically,

the

most

recently

available

information

by

a

Private

Company

is

as

of

a

date

that

is

earlier

than

the

date

a

Fund

is

calculating

its

NAV.

This

factor

may

result

in

a

difference

between

the

value

of

the

investment

and

the

price

a

Fund

could

receive

upon

the

sale

of

the

investment. 

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

These

inputs

to

valuation

techniques

are

categorized

into

a

fair

value

hierarchy

consisting

of

three

broad

levels

for

financial reporting purposes

as

follows: 

Level

1

—

Unadjusted

price

quotations

in

active

markets/exchanges

for

identical

assets

or

liabilities

that

each

Fund

has

the

ability

to

access;

Level

2

—

Other

observable

inputs

(including,

but

not

limited

to,

quoted

prices

for

similar

assets

or

liabilities

in

markets

that

are

active,

quoted

prices

for

identical

or

similar

assets

or

liabilities

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

for

the

assets

or

liabilities

(such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks

and

default

rates)

or

other

market–corroborated

inputs);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Valuation

Committee’s

assumptions

used

in

determining

the

fair

value

of

financial

instruments).

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

Private

Companies

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

As

of

September

30,

2022,

certain

investments

of

High

Yield

Bond were fair valued

using

NAV per

share as

no

quoted

market

value

is

available

and

therefore

have

been

excluded

from

the

fair

value

hierarchy.

4.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

Standard

Inputs

Generally

Considered

By

The

Valuation

Committee

And

Third-Party

Pricing

Services

Market

approach

........................

(i)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(i)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(i)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Financial

Statements

(continued)

137

Notes

to

Financial

Statements

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

Collateralized

Debt

Obligations:

Collateralized

debt

obligations

(“CDOs”),

including

collateralized

bond

obligations

(“CBOs”)

and

collateralized

loan

obligations

(“CLOs”),

are

types

of

asset-backed

securities.

A

CDO

is

an

entity

that

is

backed

by

a

diversified

pool

of

debt

securities

(CBOs)

or

syndicated

bank

loans

(CLOs).

The

cash

flows

of

the

CDO

can

be

split

into

multiple

segments,

called

“tranches,”

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segment

is

the

subordinated

or

“equity”

tranche.

This

tranche

bears

the

greatest

risk

of

defaults

from

the

underlying

assets

in

the

CDO

and

serves

to

protect

the

other,

more

senior,

tranches

from

default

in

all

but

the

most

severe

circumstances.

Since

it

is

shielded

from

defaults

by

the

more

junior

tranches,

a

“senior”

tranche

will

typically

have

higher

credit

ratings

and

lower

yields

than

their

underlying

securities,

and

often

receive

investment

grade

ratings

from

one

or

more

of

the

nationally

recognized

rating

agencies.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses

due

to

actual

defaults,

increased

sensitivity

to

future

defaults

and

the

disappearance

of

one

or

more

protecting

tranches

as

a

result

of

changes

in

the

credit

profile

of

the

underlying

pool

of

assets. 

Multiple

Class

Pass-Through

Securities:

Multiple

class

pass-through

securities,

including

collateralized

mortgage

obligations

(“CMOs”)

and

commercial

mortgage-backed

securities,

may

be

issued

by

Ginnie

Mae,

U.S.

Government

agencies

or

instrumentalities

or

by

trusts

formed

by

private

originators

of,

or

investors

in,

mortgage

loans.

In

general,

CMOs

are

debt

obligations

of

a

legal

entity

that

are

collateralized

by

a

pool

of

residential

or

commercial

mortgage

loans

or

Mortgage

Assets.

The

payments

on

these

are

used

to

make

payments

on

the

CMOs

or

multiple

pass-through

securities.

Multiple

class

pass-through

securities

represent

direct

ownership

interests

in

the

Mortgage

Assets.

Classes

of

CMOs

include

interest

only

(“IOs”),

principal

only

(“POs”),

planned

amortization

classes

and

targeted

amortization

classes.

IOs

and

POs

are

stripped

mortgage-backed

securities

representing

interests

in

a

pool

of

mortgages,

the

cash

flow

from

which

has

been

separated

into

interest

and

principal

components.

IOs

receive

the

interest

portion

of

the

cash

flow

while

POs

receive

the

principal

portion.

IOs

and

POs

can

be

extremely

volatile

in

response

to

changes

in

interest

rates.

As

interest

rates

rise

and

fall,

the

value

of

IOs

tends

to

move

in

the

same

direction

as

interest

rates.

POs

perform

best

when

prepayments

on

the

underlying

mortgages

rise

since

this

increases

the

rate

at

which

the

principal

is

returned

and

the

yield

to

maturity

on

the

PO.

When

payments

on

mortgages

underlying

a

PO

are

slower

than

anticipated,

the

life

of

the

PO

is

lengthened

and

the

yield

to

maturity

is

reduced.

If

the

underlying

Mortgage

Assets

experience

greater

than

anticipated

prepayments

of

principal,

a

fund’s

initial

investment

in

the

IOs

may

not

fully

recoup. 

Stripped

Mortgage-Backed

Securities:

Stripped

mortgage-backed

securities

are

typically

issued

by

the

U.S.

Government,

its

agencies

and

instrumentalities.

Stripped

mortgage-backed

securities

are

usually

structured

with

two

classes

that

receive

different

proportions

of

the

interest

(IOs)

and

principal

(POs)

distributions

on

a

pool

of

Mortgage

Assets.

Stripped

mortgage-backed

securities

may

be

privately

issued.

Zero-Coupon

Bonds:

Zero-coupon

bonds

are

normally

issued

at

a

significant

discount

from

face

value

and

do

not

provide

for

periodic

interest

payments.

These

bonds

may

experience

greater

volatility

in

market

value

than

other

debt

obligations

of

similar

maturity

which

provide

for

regular

interest

payments. 

Capital

Securities

and

Trust

Preferred

Securities:

Capital

securities,

including

trust

preferred

securities,

are

typically

issued

by

corporations,

generally

in

the

form

of

interest-bearing

notes

with

preferred

securities

characteristics.

In

the

case

of

trust

preferred

securities,

an

affiliated

business

trust

of

a

corporation

issues

these

securities,

generally

in

the

form

of

beneficial

interests

in

subordinated

debentures

or

similarly

structured

securities.

The

securities

can

be

structured

with

either

a

fixed

or

adjustable

coupon

that

can

have

either

a

perpetual

or

stated

maturity

date.

For

trust

preferred

securities,

the

issuing

bank

or

corporation

pays

interest

to

the

trust,

which

is

then

distributed

to

holders

of

these

securities

as

a

dividend.

Dividends

can

be

deferred

without

creating

an

event

of

default

or

acceleration,

although

maturity

cannot

take

place

unless

all

cumulative

payment

obligations

have

been

met.

The

deferral

of

payments

does

not

affect

the

purchase

or

sale

of

these

securities

in

the

open

market.

These

securities

generally

are

rated

below

that

of

the

issuing

company’s

senior

debt

securities

and

are

freely

callable

at

the

issuer’s

option. 

Preferred

Stocks:

Preferred

stock

has

a

preference

over

common

stock

in

liquidation

(and

generally

in

receiving

dividends

as

well),

but

is

subordinated

to

the

liabilities

of

the

issuer

in

all

respects.

As

a

general

rule,

the

market

value

of

preferred

stock

with

a

fixed

dividend

rate

and

no

conversion

element

varies

inversely

with

interest

rates

and

perceived

credit

risk,

while

the

market

price

of

convertible

preferred

stock

generally

also

reflects

some

element

of

conversion

value.

Because

preferred

stock

is

junior

to

debt

securities

and

other

obligations

of

the

issuer,

deterioration

in

the

credit

quality

of

the

issuer

will

cause

greater

changes

in

the

value

of

a

preferred

stock

than

in

a

more

senior

debt

security

with

similar

stated

yield

characteristics.

Unlike

interest

payments

on

debt

securities,

preferred

stock

dividends

are

payable

only

if

declared

by

the

issuer’s

board

of

directors.

Preferred

stock

also

may

be

subject

to

optional

or

mandatory

redemption

provisions. 

Floating

Rate

Loan

Interests:

Floating

rate

loan

interests

are

typically

issued

to

companies

(the

“borrower”)

by

banks,

other

financial

institutions,

or

privately

and

publicly

offered

corporations

(the

“lender”).

Floating

rate

loan

interests

are

generally

non-investment

grade,

often

involve

borrowers

whose

financial

condition

is

troubled

or

uncertain

and

companies

that

are

highly

leveraged

or

in

bankruptcy

proceedings.

In

addition,

transactions

in

floating

rate

loan

interests

may

settle

on

a

delayed

basis,

which

may

result

in

proceeds

from

the

sale

not

being

readily

available

for

a

fund

to

make

additional

investments

or

meet

its

redemption

obligations.

Floating

rate

loan

interests

may

include

fully

funded

term

loans

or

revolving

lines

of

credit.

Floating

rate

loan

interests

are

typically

senior

in

the

corporate

capital

structure

of

the

borrower.

Floating

rate

loan

interests

generally

pay

interest

at

rates

that

are

periodically

determined

by

reference

to

a

base

lending

rate

plus

a

premium.

Since

the

rates

reset

only

periodically,

changes

in

prevailing

interest

rates

(and

particularly

sudden

and

significant

changes)

can

be

expected

to

cause

some

fluctuations

in

the

NAV

of

a

fund

to

the

extent

that

it

invests

in

floating

rate

loan

interests.

The

base

lending

rates

are

generally

the

lending

rate

offered

by

one

or

more

European

banks,

such

as

the

London

Interbank

Offered

Rate

(“LIBOR”),

the

prime

rate

offered

by

one

or

more

U.S.

banks

or

the

certificate

of

deposit

rate.

Floating

rate

loan

interests

may

involve

foreign

borrowers,

and

investments

may

be

denominated

in

foreign

currencies.

These

investments

are

treated

as

investments

in

debt

securities

for

purposes

of

a

fund’s

investment

policies. 

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

138

When

a

fund

purchases

a

floating

rate

loan

interest,

it

may

receive

a

facility

fee

and

when

it

sells

a

floating

rate

loan

interest,

it

may

pay

a

facility

fee.

On

an

ongoing

basis,

a

fund

may

receive

a

commitment

fee

based

on

the

undrawn

portion

of

the

underlying

line

of

credit

amount

of

a

floating

rate

loan

interest.

Facility

and

commitment

fees

are

typically

amortized

to

income

over

the

term

of

the

loan

or

term

of

the

commitment,

respectively.

Consent

and

amendment

fees

are

recorded

to

income

as

earned.

Prepayment

penalty

fees,

which

may

be

received

by

a

fund

upon

the

prepayment

of

a

floating

rate

loan

interest

by

a

borrower,

are

recorded

as

realized

gains.

A

fund

may

invest

in

multiple

series

or

tranches

of

a

loan.

A

different

series

or

tranche

may

have

varying

terms

and

carry

different

associated

risks.

Floating

rate

loan

interests

are

usually

freely

callable

at

the

borrower’s

option.

A

fund

may

invest

in

such

loans

in

the

form

of

participations

in

loans

(“Participations”)

or

assignments

(“Assignments”)

of

all

or

a

portion

of

loans

from

third

parties.

Participations

typically

will

result

in

a

fund

having

a

contractual

relationship

only

with

the

lender,

not

with

the

borrower.

A

fund

has

the

right

to

receive

payments

of

principal,

interest

and

any

fees

to

which

it

is

entitled

only

from

the

lender

selling

the

Participation

and

only

upon

receipt

by

the

lender

of

the

payments

from

the

borrower.

In

connection

with

purchasing

Participations,

a

fund

generally

will

have

no

right

to

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement,

nor

any

rights

of

offset

against

the

borrower.

A

fund

may

not

benefit

directly

from

any

collateral

supporting

the

loan

in

which

it

has

purchased

the

Participation.

As

a

result,

a

fund

assumes

the

credit

risk

of

both

the

borrower

and

the

lender

that

is

selling

the

Participation.

A

fund’s

investment

in

loan

participation

interests

involves

the

risk

of

insolvency

of

the

financial

intermediaries

who

are

parties

to

the

transactions.

In

the

event

of

the

insolvency

of

the

lender

selling

the

Participation,

a

fund

may

be

treated

as

a

general

creditor

of

the

lender

and

may

not

benefit

from

any

offset

between

the

lender

and

the

borrower.

Assignments

typically

result

in

a

fund

having

a

direct

contractual

relationship

with

the

borrower,

and

a

fund

may

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

In

connection

with

floating

rate

loan

interests,

certain

Funds

may

also

enter

into

unfunded

floating

rate

loan

interests

(“commitments”).

In

connection

with

these

commitments,

a

fund

earns

a

commitment

fee,

typically

set

as

a

percentage

of

the

commitment

amount.

Such

fee

income,

which

is

included

in

interest

income

in

the

Statements

of

Operations,

is

recognized

ratably

over

the

commitment

period.

Unfunded

floating

rate

loan

interests

are

marked-to-market

daily,

and

any

unrealized

appreciation

(depreciation)

is

included

in

the

Statements

of

Assets

and

Liabilities

and

Statements

of

Operations.

As

of

period

end,

the

Funds

had

no

outstanding

unfunded

floating

rate

loan

interests.

TBA

Commitments:

TBA

commitments

are

forward

agreements

for

the

purchase

or

sale

of

securities,

including

mortgage-backed

securities

for

a

fixed

price,

with

payment

and

delivery

on

an

agreed

upon

future

settlement

date.

The

specific

securities

to

be

delivered

are

not

identified

at

the

trade

date.

However,

delivered

securities

must

meet

specified

terms,

including

issuer,

rate

and

mortgage

terms.

When

entering

into

TBA

commitments,

a

fund

may

take

possession

of

or

deliver

the

underlying

mortgage-backed

securities

but

can

extend

the

settlement

or

roll

the

transaction.

TBA

commitments

involve

a

risk

of

loss

if

the

value

of

the

security

to

be

purchased

or

sold

declines

or

increases,

respectively,

prior

to

settlement

date,

if

there

are

expenses

or

delays

in

connection

with

the

TBA

transactions,

or

if

the

counterparty

fails

to

complete

the

transaction.

In

order

to

better

define

contractual

rights

and

to

secure

rights

that

will

help

a

fund

mitigate its

counterparty

risk,

TBA

commitments

may

be

entered

into

by

a

fund

under

Master

Securities

Forward

Transaction

Agreements

(each,

an

“MSFTA”).

An

MSFTA

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

default

and/or

termination

event. The

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

the

collateral

currently

pledged

by

a

fund

and

the

counterparty. Cash

collateral

that

has

been

pledged

to

cover

the

obligations

of

a

fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

for

TBA

commitments

or

cash

received

as

collateral

for

TBA

commitments,

respectively.

Non-cash

collateral

pledged

by

a

fund,

if

any,

is

noted

in

the

Schedules

of

Investments. Typically,

a

fund

is

permitted

to

sell,

re-pledge

or

use

the

collateral

it

receives;

however,

the

counterparty

is

not

permitted

to

do

so.

To

the

extent

amounts

due

to

a

fund

are

not

fully

collateralized,

contractually

or

otherwise,

a

fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Mortgage

Dollar

Roll

Transactions

:

The

Funds

may

sell

TBA

mortgage-backed

securities

and

simultaneously

contract

to

repurchase

substantially

similar

(i.e.,

same

type,

coupon

and

maturity)

securities

on

a

specific

future

date

at

an

agreed

upon

price.

During

the

period

between

the

sale

and

repurchase,

a

fund

is

not

entitled

to

receive

interest

and

principal

payments

on

the

securities

sold.

Mortgage

dollar

roll

transactions

are

treated

as

purchases

and

sales

and

a

fund realizes

gains

and

losses

on

these

transactions.

Mortgage

dollar

rolls

involve

the

risk

that

the

market

value

of

the

securities

that

a

fund

is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities. 

Securities

Lending:

 Certain

Funds

may

lend

their

securities

to

approved

borrowers,

such

as

brokers,

dealers

and

other

financial

institutions.

The

borrower

pledges

and

maintains

with

the

Funds

collateral

consisting

of

cash,

an

irrevocable

letter

of

credit

issued

by

a

bank,

or

securities

issued

or

guaranteed

by

the

U.S.

Government.

The

initial

collateral

received

by

each

Fund

is

required

to

have

a

value

of

at

least

102%

of

the

current

value

of

the

loaned

securities

for

securities

traded

on

U.S.

exchanges

and

a

value

of

at

least

105%

for

all

other

securities.

The

collateral

is

maintained

thereafter

at

a

value

equal

to

at

least

100%

of

the

current

market

value

of

the

securities

on

loan.

The

market

value

of

the

loaned

securities

is

determined

at

the

close

of

each

business

day

of the

Fund

and

any

additional

required

collateral

is

delivered

to

the

Fund,

or

excess

collateral returned

by

the

Fund,

on

the

next

business

day.

During

the

term

of

the

loan,

the

Funds

are

entitled

to

all

distributions

made

on

or in

respect

of

the

loaned

securities,

but

do

not

receive

interest

income

on

securities

received

as

collateral.

Loans

of

securities

are

terminable

at

any

time

and

the

borrower,

after

notice,

is

required

to

return

borrowed

securities

within

the

standard

time

period

for

settlement

of

securities

transactions.

As

of

period

end,

any

securities

on

loan

were

collateralized

by

cash

and/or

U.S.

Government

obligations.

Cash

collateral

invested

by

the

securities

lending

agent,

BlackRock

Investment

Management,

LLC

(“BIM”),

if

any,

is

disclosed

in

the

Schedules

of

Investments.

Any

non-cash

collateral

received

cannot

be

sold,

re-invested

or

pledged

by

the

Fund,

except

in

the

event

of

borrower

default.

The

securities

on

loan,

if

any,

are

disclosed

in

the

Funds’

Schedules

of

Investments.

The

market

value

of

any

securities

on

loan

and

the

value

of

any

related

collateral

are

shown

separately

in

the

Statements

of

Assets

and

Liabilities

as

a

component

of

investments

at

value

–

unaffiliated

and

collateral

on

securities

loaned,

respectively.

Securities

lending

transactions

are

entered

into

by

the

Funds

under

Master

Securities

Lending

Agreements

(each,

an

“MSLA”),

which

provide

the

right,

in

the

event

of

default

(including

bankruptcy

or

insolvency),

for

the

non-defaulting

party

to

liquidate

the

collateral

and

calculate

a

net

exposure

to

the

defaulting

party

or

request

additional

collateral.

In

the

event

that

a

borrower

defaults,

the

Funds,

as

lender,

would

offset

the

market

value

of

the

collateral

received

against

the

market

value

of

the

securities

loaned.

When

the

value

of

the

collateral

is

greater

than

that

of

the

market

value

of

the

securities

loaned,

the

lender

is

left

with

a

net

amount

payable

to

the

defaulting

party.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

such

a

right

of

offset

in

the

event

of

an

MSLA

counterparty’s

bankruptcy

or

insolvency.

Under

the

MSLA,

absent

an

event

of

default,

the

borrower

can

resell

or

re-pledge

the

loaned

securities,

and the

Funds

can

reinvest

cash

collateral

received

in

connection

with

loaned

securities.

Upon

an

event

of

default,

the

parties’

obligations

to

return

the

securities

or

collateral

to

the

other

party

are

extinguished,

and

the

parties

Notes

to

Financial

Statements

(continued)

139

Notes

to

Financial

Statements

can

resell

or

re-pledge

the

loaned

securities

or

the

collateral

received

in

connection

with

the

loaned

securities

in

order

to

satisfy

the

defaulting

party’s

net

payment

obligation

for

all

transactions

under

the

MSLA.

The

defaulting

party

remains

liable

for

any

deficiency.

The

risks

of

securities

lending

include

the

risk

that

the

borrower

may

not

provide

additional

collateral

when

required

or

may

not

return

the

securities

when

due.

To

mitigate

these

risks,

the

Funds

benefit

from

a

borrower

default

indemnity

provided

by

BIM.

BIM’s

indemnity

allows

for

full

replacement

of

the

securities

loaned

to

the

extent the

collateral

received

does

not

cover

the

value

on

the

securities

loaned

in

the

event

of

borrower

default.

Each

Fund

could

incur

a

loss

if

the

value

of

an

investment

purchased

with

cash

collateral

falls

below

the

market

value

of

loaned

securities

or

if

the

value

of

an

investment

purchased

with

cash

collateral

falls

below

the

value

of

the

original

cash

collateral

received.

Such

losses

are

borne

entirely

by

the

Funds.

5.

Derivative

Financial

Instruments

The

Funds

engage

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Funds

and/or

to

manage

their

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Schedules

of

Investments.

These

contracts

may

be

transacted

on

an

exchange

or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk)

.

Futures

contracts

are

exchange-traded agreements

between

the

Funds

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Funds

are

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Funds

agree

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

rates,

foreign

currency

exchange

rates

or

underlying

assets.

Forward

Foreign

Currency

Exchange

Contracts

:

Forward

foreign

currency

exchange

contracts

are

entered

into

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

A

forward

foreign

currency

exchange

contract

is

an

agreement

between

two

parties

to

buy

and

sell

a

currency

at

a

set

exchange

rate

on

a

specified

date.

These

contracts

help

to

manage

the

overall

exposure

to

the

currencies

in

which

some

of

the

investments

held

by

the

Funds

are

denominated

and

in

some

cases,

may

be

used

to

obtain

exposure

to

a

particular

market.

The

contracts

are

traded

OTC

and

not

on

an

organized

exchange.

The

contract

is

marked-to-market

daily

and

the

change

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

in

the

Statements

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

value

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

Non-deliverable

forward

foreign

currency

exchange

contracts

are

settled

with

the

counterparty

in

cash

without

the

delivery

of

foreign

currency.

The

use

of

forward

foreign

currency

exchange

contracts

involves

the

risk

that

the

value

of

a

forward

foreign

currency

exchange

contract

changes

unfavorably

due

to

movements

in

the

value

of

the

referenced

foreign

currencies,

and

such

value

may

exceed

the

amount(s)

reflected

in

the Statements

of

Assets

and

Liabilities. Cash

amounts

pledged

for

forward

foreign

currency

exchange

contracts

are

considered

restricted

and

are

included

in

cash

pledged

as

collateral

for

OTC

derivatives

in

the

Statements

of

Assets

and

Liabilities.

A

Fund’s

risk

of

loss

from

counterparty

credit

risk

on

OTC

derivatives

is

generally

limited

to

the

aggregate

unrealized

gain

netted

against

any

collateral

held

by

the

Fund.

Options:

The

Funds

may purchase

and

write

call

and

put

options

to

increase

or

decrease

their

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

As

of

period

end,

the

following

table

is

a

summary

of

the

Funds'

securities

on

loan

by

counterparty

which

are

subject

to

offset

under

an

MSLA:

Fund

Name/Counterparty  

Securities

Loaned

at

Value

Cash

Collateral

Received

(a)

Non-Cash

Collateral

Received,

at

Fair

Value

Net

Amount

High

Yield

Bond

Citigroup

Global

Markets,

Inc.

....................

$

134,945‌

$

(134,945‌)

$

—‌

$

—‌

Goldman

Sachs

&

Co.

LLC

......................

2,629,170‌

(2,629,170‌)

—‌

—‌

J.P.

Morgan

Securities

LLC

......................

1,273‌

(1,273‌)

—‌

—‌

Morgan

Stanley

..............................

6,056,363‌

(6,056,363‌)

—‌

—‌

$

8,821,751‌

$

(8,821,751‌)

$

—‌

$

—‌

(a)

Collateral

received,

if

any,

in

excess

of

the

market

value

of

securities

on

loan

is

not

presented

in

this

table.

The

total

cash

collateral

received

by

the

Fund

is

disclosed

in

the

Fund's

Consolidated

Statement

of

Assets

and

Liabilities.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

140

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Statements

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Funds

write

a

call

option,

such

option

is

typically

“covered,”

meaning

that

they

hold

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Funds

write

a

put

option,

cash

is

segregated

in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Statements

of

Assets

and

Liabilities.

Swaptions

–

The

Funds

may purchase

and

write

swaptions

primarily

to

preserve

a

return

or

spread

on

a

particular

investment

or

portion

of

the

Funds’

holdings,

as

a

duration

management

technique

or

to

protect

against

an

increase

in

the

price

of

securities

it

anticipates

purchasing

at

a

later

date.

The

purchaser

and

writer

of

a

swaption

is

buying

or

granting

the

right

to

enter

into

a

previously

agreed

upon

interest

rate

or

credit

default

swap

agreement

(interest

rate

risk

and/or

credit

risk)

at

any

time

before

the

expiration

of

the

option.

Foreign

currency

options

– The

Funds

may purchase

and

write

foreign

currency

options,

foreign

currency

futures

and

options

on

foreign

currency

futures

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

Foreign

currency

options

give

the

purchaser

the

right

to

buy

from

or

sell

to

the

writer

a

foreign

currency

at

any

time

before

the

expiration

of

the

option.

In

purchasing

and

writing

options,

the

Funds

bear

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

they

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Funds

purchasing

or

selling

a

security

when they

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Funds

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Statements

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Statements

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Funds’

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Funds’

counterparty

on

the

swap. Each

Fund is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap, each

Fund is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract, each

Fund

agrees

to

receive

from

or

pay

to

the

broker

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

from

(paid

to)

the

counterparty

are

amortized

over

the

term

of

the

contract

and recorded

as

realized

gains

(losses)

in

the

Statements

of

Operations,

including

those

at

termination.

Credit

default

swaps

—

Credit

default

swaps

are

entered

into

to

manage

exposure

to

the

market

or

certain

sectors

of

the

market,

to

reduce

risk

exposure

to

defaults

of

corporate

and/or

sovereign

issuers

or

to

create

exposure

to

corporate

and/or

sovereign

issuers

to

which

a

fund

is

not

otherwise

exposed

(credit

risk).

The

Funds

may

either

buy

or

sell

(write)

credit

default

swaps

on

single-name

issuers

(corporate

or

sovereign),

a

combination

or

basket

of

single-name

issuers

or

traded

indexes.

Credit

default

swaps

are

agreements

in

which

the

protection

buyer

pays

fixed

periodic

payments

to

the

seller

in

consideration

for

a

promise

from

the

protection

seller

to

make

a

specific

payment

should

a

negative

credit

event

take

place

with

respect

to

the

referenced

entity

(e.g.,

bankruptcy,

failure

to

pay,

obligation

acceleration,

repudiation,

moratorium

or

restructuring).

As

a

buyer,

if

an

underlying

credit

event

occurs,

the

Funds

will

either

(i)

receive

from

the

seller

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

security

or

underlying

securities

comprising

the

index,

or

(ii)

receive

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

As

a

seller

(writer),

if

an

underlying

credit

event

occurs,

the

Funds

will

either

pay

the

buyer

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

security

or

underlying

securities

comprising

the

index

or

pay

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

Total

return

swaps

—

Total

return

swaps

are

entered

into

to

obtain

exposure

to

a

security

or

market

without

owning

such

security

or

investing

directly

in

such

market

or

to

exchange

the

risk/return

of

one

security

or

market

(e.g.,

fixed-income)

with

another

security

or

market

(e.g.,

equity

or

commodity

prices)

(equity

risk,

commodity

price

risk

and/or

interest

rate

risk).

Total

return

swaps

are

agreements

in

which

there

is

an

exchange

of

cash

flows

whereby

one

party

commits

to

make

payments

based

on

the

total

return

(distributions

plus

capital

gains/losses)

of

an

underlying

instrument,

or

basket

of

underlying

instruments,

in

exchange

for

fixed

or

floating

rate

interest

payments.

If

the

total

return

of

the

instrument(s)

or

index

underlying

the

transaction

exceeds

or

falls

short

of

the

offsetting

fixed

or

floating

interest

rate

obligation,

the

Funds

receive

payment

from

or

make

a

payment

to

the

counterparty.

Interest

rate

swaps

—

Interest

rate

swaps

are

entered

into

to

gain

or

reduce

exposure

to

interest

rates

or

to

manage

duration,

the

yield

curve

or

interest

rate

(interest

rate

risk).

Notes

to

Financial

Statements

(continued)

141

Notes

to

Financial

Statements

Interest

rate

swaps

are

agreements

in

which

one

party

pays

a

stream

of

interest

payments,

either

fixed

or

floating,

in

exchange

for

another

party’s

stream

of

interest

payments,

either

fixed

or

floating,

on

the

same

notional

amount

for

a

specified

period

of

time.

In

more

complex

interest

rate

swaps,

the

notional

principal

amount

may

decline

(or

amortize)

over

time.

Forward

swaps

— The

Funds

may enter

into

forward

interest

rate

swaps

and

forward

total

return

swaps.

In

a

forward

swap,

each

Fund

and

the

counterparty

agree

to

make

periodic

net

payments

beginning

on

a

specified

date

or

a

net

payment

at

termination.

Inflation

swaps

—

Inflation

swaps

are

entered

into

to

gain

or

reduce

exposure

to

inflation

(inflation

risk).

In

an

inflation

swap,

one

party

makes

fixed

interest

payments

on

a

notional

principal

amount

in

exchange

for

another

party’s

variable

payments

based

on

an

inflation

index,

such

as

the

Consumer

Price

Index.

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risks

in

excess

of

the

amounts

recognized

in

the

Statements

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, a

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

Fund

and

a

counterparty

that

governs

certain

OTC

derivatives

and

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

a

default

and/or

termination

event.

Under

an

ISDA

Master

Agreement, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Funds

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Funds

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Funds,

if

any,

is

noted

in

the

Schedules

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Funds.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Funds

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

A

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Funds

from the

counterparties

are

not

fully

collateralized, each

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Funds have

delivered

collateral

to

a

counterparty

and

stand

ready

to

perform

under

the

terms

of

their

agreement

with

such

counterparty, each

Fund bears

the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

For

financial

reporting

purposes,

the

Funds

do

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Statements

of

Assets

and

Liabilities.

6.

INVESTMENT

ADVISORY

AGREEMENT

AND

OTHER

TRANSACTIONS

WITH

AFFILIATES 

Investment

Advisory:

The

Trust,

on

behalf

of

the

Funds,

entered

into

an

Investment

Advisory

Agreement

with

the

Manager,

the

Funds’

investment

adviser

and

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

Inc.

(“BlackRock”),

to

provide

investment

advisory

services.

The

Manager

is

responsible

for

the

management

of each

Fund’s

portfolio

and

provides

the

personnel,

facilities,

equipment

and

certain

other

services

necessary

to

the

operations

of each

Fund.

For

such

services,

each

Fund

pays

the

Manager

a

monthly

fee

at

an

annual

rate

equal

to

the

following

percentages

of

the

average

daily

value

of

each

Fund’s

net

assets:

Core

Bond

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

..........................................................................................................

0.350‌%

$1

billion

-

$2

billion

......................................................................................................

0.340‌

$2

billion

-

$3

billion

......................................................................................................

0.330‌

Greater

than

$3

billion

....................................................................................................

0.320‌

High

Yield

Bond

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

..........................................................................................................

0.500‌%

$1

billion

-

$2

billion

......................................................................................................

0.450‌

$2

billion

-

$3

billion

......................................................................................................

0.425‌

$3

billion

-

$25

billion

.....................................................................................................

0.400‌

$25

billion

-

$30

billion

....................................................................................................

0.375‌

Greater

than

$30

billion

....................................................................................................

0.350‌

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

142

The

Manager

provides

investment

management

and

other

services

to

the

Taxable

Subsidiaries.

The

Manager

does

not

receive

separate

compensation

from

the

Taxable

Subsidiaries

for

providing

investment

management

or

administrative

services.

However, High

Yield

Bond

pays

the

Manager

based

on

the

Fund's

net

assets,

which

includes

the

assets

of

the

Taxable

Subsidiaries.

With

respect

to

High

Yield

Bond,

the

Manager

entered

into

a

sub-advisory

agreement

with

BlackRock

International

Limited

(“BIL”)

(the

“Sub-Adviser”),

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

for

services

it

provides

for

that

portion

of

the

Fund

for

which

BIL,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

the

Fund

to

the

Manager.

With

respect

to

Core

Bond

and

Low

Duration

Bond,

the

Manager

entered

into

separate

sub-advisory

agreements

with

each

of

BIL

and

BlackRock

(Singapore)

Limited

(“BSL”)

(collectively,

the

“Sub-Advisers”),

each

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

and

BSL

for

services

they

provide

for

that

portion

of

each

Fund

for

which

BIL

and

BSL,

as

applicable,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

each

Fund

to

the

Manager.

Service

and

Distribution

Fees:

The

Trust

,

on behalf

of

the

Funds,

entered

into

a

Distribution

Agreement

and

a Distribution and

Service

Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager.

Pursuant

to

the

Distribution

and

Service

Plan

and

in

accordance

with

Rule

12b-1

under

the

1940

Act,

each

Fund

pays

BRIL

ongoing

service

and

distribution

fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

each

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing

and

distribution

services to

the

Funds.

The

ongoing

service

and/or

distribution

fee compensates

BRIL

and

each

broker-dealer

for

providing

shareholder

servicing

and/or

distribution related

services

to

shareholders.

For

the year

ended

September

30,

2022,

the

following

table

shows

the

class

specific

service

and

distribution

fees

borne

directly

by

each

share

class

of

each

Fund:

Administration:

The

Trust,

on

behalf

of

the

Funds,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

each

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Statements

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Statements

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

year

ended

September

30,

2022, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

each

Fund:

Low

Duration

Bond

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

..........................................................................................................

0.310‌%

$1

billion

-

$3

billion

......................................................................................................

0.290‌

$3

billion

-

$5

billion

......................................................................................................

0.280‌

$5

billion

-

$10

billion

.....................................................................................................

0.270‌

Greater

than

$10

billion

....................................................................................................

0.260‌

Share

Class

Service

Fees

Distribution

Fees

Service

..................................................................................................

0.25‌%

—‌

Investor

A

.................................................................................................

0.25‌

—‌

Investor

A1

................................................................................................

0.10‌

—‌

Investor

C

.................................................................................................

0.25‌

0.75‌

%

Class

R

..................................................................................................

0.25‌

0.25‌

Fund

Name

Service

Investor

A

Investor

A1

Investor

C

Class

R

Total

Core

Bond

..................................................

$

—‌

$

1,043,170‌

$

—‌

$

196,685‌

$

6,250‌

$

1,246,105‌

High

Yield

Bond

...............................................

277,460‌

3,190,83

6‌

—‌

1,293,228‌

505,280‌

5,266,80

4‌

Low

Duration

Bond

............................................

—‌

2,758,239‌

5,917‌

436,751‌

11,516‌

3,212,423‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

0.0425

%

$500

million

-

$1

billion

0.0400

$1

billion

-

$2

billion

0.0375

$2

billion

-

$4

billion

0.0350

$4

billion

-

$13

billion

0.0325

Greater

than

$13

billion

0.0300

Fund

Name

Institutional

Service

Investor

A

Investor

A1

Investor

C

Class

K

Class

R

Total

Core

Bond

....................................

$

524,91

4‌

$

—‌

$

83,449‌

$

—‌

$

3,934‌

$

156,040‌

$

250‌

$

768,58

7‌

High

Yield

Bond

.................................

2,470,598‌

22,196‌

255,254‌

—‌

25,863‌

1,408,646‌

20,210‌

4,202,767‌

Low

Duration

Bond

..............................

1,162,001‌

—‌

220,648‌

1,183‌

8,735‌

178,695‌

461‌

1,571,723‌

Notes

to

Financial

Statements

(continued)

143

Notes

to

Financial

Statements

Transfer

Agent:

Pursuant

to

written

agreements,

certain

financial

intermediaries,

some

of

which

may

be

affiliates,

provide

the

Funds

with

sub-accounting,

recordkeeping,

sub-transfer

agency

and

other

administrative

services

with

respect

to

servicing

of

underlying

investor

accounts.

For

these

services,

these

entities

receive

an

asset-based

fee

or

an

annual

fee

per

shareholder

account,

which

will

vary

depending

on

share

class

and/or

net

assets.

For

the

year ended September

30,

2022,

the

Funds 

paid

the

following

amounts

to

affiliates

of

BlackRock

in

return

for

these

services,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statements

of

Operations:

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Funds.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the year

ended

September

30,

2022,

each

Fund

reimbursed

the

Manager

the

following

amounts

for

costs

incurred

in

running

the

call

center,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statements

of

Operations:

For

the

year ended

September

30,

2022,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

each

Fund:

Other

Fees:

For

the year

ended September

30,

2022,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of each

Fund’s Investor

A

Shares as

follows:

For

the year

ended

September

30,

2022,

affiliates

received

CDSCs

as

follows:

Expense

Limitations,

Waivers,

and

Reimbursements:

With

respect

to

each

Fund,

the

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees

each

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

June

30,

2023.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitation

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver.

These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

For

the

Year

ended

September

30,

2022,

the

amounts

waived

were

as

follows:

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of each

Fund’s

assets

invested

in

affiliated

equity

and

fixed-

income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

June

30,

2023.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund. These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

For

the

year

ended

September

30,

2022,

the

amounts

waived

in

investment

advisory

fees

pursuant

to

these

arrangements

were

as

follows:

Fund

Name

Institutional

Investor

A

Total

Core

Bond

......................................................................................

$

656,237

$

2,084

$

658,321

High

Yield

Bond

...................................................................................

266,646

330

266,976

Low

Duration

Bond

................................................................................

242,376

—

242,376

Fund

Name

Institutional

Service

Investor

A

Investor

A1

Investor

C

Class

K

Class

R

Total

Core

Bond

...........................

$

5,697‌

$

—‌

$

10,895‌

$

—‌

$

4,198‌

$

1,950‌

$

97‌

$

22,837‌

High

Yield

Bond

........................

45,090‌

912‌

78,074‌

—‌

7,732‌

17,167‌

2,041‌

151,016‌

Low

Duration

Bond

.....................

12,108‌

—‌

12,581‌

487‌

1,800‌

1,953‌

122‌

29,051‌

Fund

Name

Institutional

Service

Investor

A

Investor

A1

Investor

C

Class

K

Class

R

Total

Core

Bond

....................................

$

2,934,079‌

$

—‌

$

580,248‌

$

—‌

$

27,296‌

$

70,124‌

$

3,493‌

$

3,615,240‌

High

Yield

Bond

.................................

12,996,164‌

161,523‌

2,560,211‌

—‌

139,236‌

923,507‌

188,669‌

16,969,310‌

Low

Duration

Bond

..............................

4,098,169‌

—‌

1,425,466‌

9,132‌

40,574‌

63,327‌

5,237‌

5,641,905‌

Fund

Name

Other

Fees

Core

Bond

.............................................................................................................

$

15,494‌

High

Yield

Bond

..........................................................................................................

39,703‌

Low

Duration

Bond

.......................................................................................................

43,112‌

Fund

Name

Investor

A

Investor

C

Core

Bond

..................................................................................................

$

24,682‌

$

1,297‌

High

Yield

Bond

...............................................................................................

59,530‌

19,375‌

Low

Duration

Bond

............................................................................................

196,098‌

19,645‌

Fund

Name

Amounts

Waived

Core

Bond

.........................................................................................................

$

96,535‌

High

Yield

Bond

......................................................................................................

405,175‌

Low

Duration

Bond

...................................................................................................

79,663‌

Fund

Name

Amounts

Waived

High

Yield

Bond

..........................................................................................................

$

611,916‌

Low

Duration

Bond

.......................................................................................................

119,997‌

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

144

With

respect

to

each

Fund,

the

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

expenses,

excluding

interest

expense,

dividend

expense,

tax

expense,

acquired

fund

fees

and

expenses,

and

certain

other

fund

expenses,

which

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of each

Fund’s

business

(“expense

limitation”).

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2023,

unless

approved

by

the

Board,

including

a

majority

of

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

For

the

year

ended

September

30,

2022,

the

amounts

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations

were

as

follows:

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in administration

fees

waived

by

the

Manager

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific,

respectively,

in

the

Statements

of

Operations.

For

the year

ended

September

30,

2022,

class

specific

expense

waivers

and/or

reimbursements are

as

follows: 

Securities

Lending:

 The

U.S.

Securities

and

Exchange

Commission

(“SEC”)

has

issued

an

exemptive

order

which

permits

BIM,

an

affiliate

of

the

Manager,

to

serve

as

securities

lending

agent

for

the

Funds,

subject

to

applicable

conditions.

As

securities

lending

agent,

BIM

bears

all

operational

costs

directly

related

to

securities

lending.

The

Funds

are

responsible

for

expenses

in

connection

with

the

investment

of

cash

collateral

received

for

securities

on

loan

(the

“collateral

investment

expenses”).

The

cash

collateral

is

invested

in

a

private

investment

company,

Money

Market

Series,

managed

by

the

Manager

or

its

affiliates.

However,

BIM

has

agreed

to

cap

the

collateral

investment

expenses

of

the Money

Market

Series to

an

annual

rate

of

0.04%.

The

investment

adviser

to

the

Money

Market

Series

will

not

charge

any

advisory

fees

with

respect

to

shares

purchased

by

the

Funds.

The

Money

Market

Series

may,

under

certain

circumstances,

impose

a

liquidity

fee

of

up

to

2%

of

the

value

withdrawn

or

temporarily

restrict

withdrawals

for

up

to

10

business

days

during

a

90

day

period,

in

the

event

that

the

private

investment

company’s

weekly

liquid

assets

fall

below

certain

thresholds. The

Money

Market

Series

seeks

current

income

consistent

with

maintaining

liquidity

and

preserving

capital.

Although

the

Money

Market

Series

is

not

registered

under

the

1940

Act,

its

investments

may

follow

the

parameters

of

investments

by

a

money

market

fund

that

is

subject

to

Rule

2a-7

under

the

1940

Act.

Securities

lending

income

is

equal

to

the

total

of

income

earned

from

the

reinvestment

of

cash

collateral,

net

of

fees

and

other

payments

to

and

from

borrowers

of

securities,

and

less

the

collateral

investment

expenses.

Each

Fund

retains

a

portion

of

securities

lending

income

and

remits

a

remaining

portion

to

BIM

as

compensation

for

its

services

as

securities

lending

agent.

Pursuant

to

the

current

securities

lending

agreement,

High

Yield

Bond

retains

81%

of

securities

lending

income

(which

excludes

collateral

investment

expenses),

and

this

amount

retained

can

never

be

less

than

70%

of

the

total

of

securities

lending

income

plus

the

collateral

investment

expenses.

In

addition,

commencing

the

business

day

following

the

date

that

the

aggregate

securities

lending

income

earned

across

the

BlackRock

Fixed-Income

Complex

in

a

calendar

year

exceeds

a

specified

threshold,

High

Yield

Bond,

pursuant

to

the

securities

lending

agreement,

will

retain

for

the

remainder

of

that

calendar

year

securities

lending

income

Fund

Name

Institutional

Service

Investor

A

Investor

A1

Investor

C

Class

K

Class

R

Core

Bond

.......................................

0.43‌%

N/A‌

0.68‌%

N/A‌

1.43‌%

0.38‌%

0.93‌%

High

Yield

Bond

....................................

0.67‌

1.02‌%

0.92‌

N/A‌

1.72‌

0.58‌

1.28‌

Low

Duration

Bond

.................................

0.40‌

N/A‌

0.65‌

0.50‌%

1.40‌

0.35‌

0.90‌

Fund

Name

Fees

Waived

and/or

Reimbursed

by

the

Manager

Core

Bond

...............................................................................................................

$

556,770‌

Low

Duration

Bond

.........................................................................................................

3,263‌

Fund

Name/Share

Class

Administration

Fees

Waived

by

the

Manager

-

Class

Specific

Transfer

Agent

Fees

Waived

and/or

Reimbursed

by

the

Manager

-

Class

Specific

Core

Bond

Institutional

....................................................................................

$

524,914‌

$

1,620,204‌

Investor

A

.....................................................................................

83,449‌

371,751‌

Investor

C

.....................................................................................

3,934‌

17,524‌

Class

K

......................................................................................

156,040‌

70,117‌

Class

R

......................................................................................

250‌

2,860‌

$

768,587‌

$

2,082,456‌

High

Yield

Bond

Investor

A

.....................................................................................

76,727‌

5,510‌

$

76,727‌

$

5,510‌

Low

Duration

Bond

Institutional

....................................................................................

1,129,189‌

320,352‌

Investor

A

.....................................................................................

220,648‌

703,976‌

Investor

A1

....................................................................................

1,183‌

5,256‌

Investor

C

.....................................................................................

8,649‌

12,088‌

Class

K

......................................................................................

91,066‌

10,600‌

Class

R

......................................................................................

461‌

3,725‌

$

1,451,196‌

$

1,055,997‌

Notes

to

Financial

Statements

(continued)

145

Notes

to

Financial

Statements

in

an

amount

equal

to

81%

of

securities

lending

income

(which

excludes

collateral

investment

expenses),

and

this

amount

retained

can

never

be

less

than

70%

of

the

total

of

securities

lending

income

plus

the

collateral

investment

expenses.

Prior

to

January

1,

2022,

High

Yield

Bond

retained

82%

of

securities

lending

income

(which

excluded

collateral

investment

expenses)

and

the

amount

retained

could

never

be

less

than

70%

of

the

total

of

securities

lending

income

plus

the

collateral

investment

expenses.

In

addition,

commencing

the

business

day

following

the

date

that

the

aggregate

securities

lending

income

earned

across

the

BlackRock Fixed-Income

Complex

in

a

calendar

year

exceeded

a

specified

threshold,

the

Fund

would

retain

for

the

remainder

of

that

calendar

year

85%

of

securities

lending

income

(which

excluded

collateral

investment

expenses),

and

the

amount

retained

could

never

be

less

than

70%

of

the

total

of

securities

lending

income

plus

the

collateral

investment

expenses.

The

share

of

securities

lending

income

earned

by

High

Yield

Bond

is

shown

as

securities

lending

income

—

affiliated

—

net

in

the

Statements

of

Operations.

For

the

year

ended

September

30,

2022,

the

Fund

paid

BIM $411,747

for

securities

lending agent

services. 

Interfund

Lending:

In

accordance

with

an

exemptive

order

(the

“Order”)

from

the

SEC, each

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by

the

Fund’s

investment

policies

and

restrictions. High

Yield

Bond

is

currently

permitted

to

borrow

under

the

Interfund

Lending

Program.

Core

Bond

and

Low

Duration

Bond

are

each

currently

permitted

to

borrow

and

lend

under

the

Interfund

Lending

Program.

A

lending

BlackRock

fund

may

lend

in

aggregate

up

to

15%

of

its

net

assets

but

may

not

lend

more

than

5%

of

its

net

assets

to

any

one

borrowing

fund

through

the

Interfund

Lending

Program.

A

borrowing

BlackRock

fund

may

not

borrow

through

the

Interfund

Lending

Program

or

from

any

other

source

more

than

33

1/3%

of

its

total

assets

(or

any

lower

threshold

provided

for

by

the fund’s

investment

restrictions).

If

a

borrowing

BlackRock

fund’s

total

outstanding

borrowings

exceed

10%

of

its

total

assets,

each

of

its

outstanding

interfund

loans

will

be

subject

to

collateralization

of

at

least

102%

of

the

outstanding

principal

value

of

the

loan.

All

interfund

loans

are

for

temporary

or

emergency

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

During

the

year

ended

September

30,

2022,

the

Funds

did

not

participate

in

the

Interfund

Lending

Program.

Trustees

and

Officers: 

Certain

trustees

and/or

officers

of

the Trust are directors and/or

officers

of BlackRock

or

its

affiliates.

The

Funds

reimburse

the

Manager

for

a

portion

of

the

compensation

paid

to

the 

Funds'

Chief

Compliance

Officer,

which

is

included

in

Trustees and

Officer

in

the

Statements

of

Operations. 

Other

Transactions:

The

Funds

may

purchase

securities

from,

or

sell

securities

to,

an

affiliated

fund

provided

the

affiliation

is

due

solely

to

having

a

common

investment

adviser,

common

officers,

or

common trustees.

For

the

year

ended

September

30,

2022,

the

purchase

and

sale

transactions

and

any

net

realized

gains

(losses)

with affiliated

funds

in

compliance

with

Rule

17a-7

under

the

1940

Act

were

as

follows:

7.

PURCHASES

AND

SALES 

For

the year ended

September

30,

2022,

purchases

and

sales

of

investments,

including

paydowns/payups,

mortgage

dollar

rolls and

excluding

short-term

securities,

were

as

follows:

For

the year ended

September

30,

2022,

purchases

and

sales

related

to

mortgage

dollar

rolls

were

as

follows:

8.

INCOME

TAX

INFORMATION 

It

is

each

Fund’s

policy

to

comply

with

the

requirements

of

the

Internal

Revenue

Code

of

1986,

as

amended,

applicable

to

regulated

investment

companies,

and

to

distribute

substantially

all

of

its

taxable

income

to

its

shareholders.

Therefore,

no

U.S.

federal

income

tax

provision

is

required. 

Each Fund

files

U.S.

federal

and

various

state

and

local

tax

returns.

No

income

tax

returns

are

currently

under

examination.

The

statute

of

limitations

on

each

Fund’s

U.S.

federal

tax

returns

generally

remains

open

for

a

period

of

three

years

after

they

are

filed.

The

statutes

of

limitations

on

each

Fund’s

state

and

local

tax

returns

may

remain

open

for

an

additional

year

depending

upon

the

jurisdiction. 

Management

has

analyzed

tax

laws

and

regulations

and

their

application

to

the Funds

as

of

September

30,

2022,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Funds’

financial

statements.

Fund

Name

Purchases

Sales

Net

Realized

Loss

Core

Bond

..........................................................................

$

—‌

$

1,491,672‌

$

(85,344‌)

High

Yield

Bond

.......................................................................

516,445,228‌

317,948,122‌

(39,492,955‌)

Low

Duration

Bond

....................................................................

2,308,806‌

12,443,819‌

(1,473,109‌)

U.S.

Government

Securities

Other

Securities

Fund

Name

Purchases

Sales

Purchases

Sales

Core

Bond

..........................................................

$

309,393,152‌

$

569,606,783‌

$

21,696,537,060‌

$

22,497,203,569‌

High

Yield

Bond

.......................................................

—‌

—‌

13,465,505,068‌

16,244,855,810‌

Low

Duration

Bond

....................................................

6,947,903,498‌

7,437,047,417‌

5,287,123,723‌

5,444,011,856‌

Fund

Name

Purchases

Sales

Core

Bond

..........................................................................................

$

8,116,496,126‌

$

8,127,512,241‌

Low

Duration

Bond

....................................................................................

740,093,355‌

741,461,741‌

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

146

U.S.

GAAP

requires

that

certain

components

of

net

assets

be

adjusted

to

reflect

permanent

differences

between

financial

and

tax

reporting.

These

reclassifications

have

no

effect

on

net

assets

or NAVs

per

share.

As

of

period

end,

permanent

differences

attributable

to

non-deductible

expenses

were reclassified

to

the

following

accounts:

The

tax

character

of

distributions

paid

was

as

follows: 

As

of

September

30,

2022,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:  

During

the

year

ended September

30,

2022,

the

Fund listed

below

utilized

the

following

amount

of

its

capital

loss

carryforward:

As

of

September

30,

2022, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

The

Trust,

on

behalf

of

the

Funds,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”),

is

a

party

to

a

364-day,

$2.50

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Funds

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Funds,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

Overnight

Bank

Funding

Rate

(“OBFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum

or

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed

or

(c)

the

sum

of

(x)

Daily

Simple

Secured

Overnight

Financing

Rate

(“SOFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.10%

and

(y) 0.80%

per

annum.

The

agreement

expires

in

April

2023

unless

extended

or

renewed.

These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the

year ended

September

30,

2022,

the

Funds

did

not

borrow

under

the

credit

agreement.

Fund

Name

Paid-In

Capital

Accumulated

Earnings

(Loss)

High

Yield

Bond

............................................................................

$

(11,906‌)

$

11,906‌

—‌

Fund

Name

Year

Ended

09/30/22

Year

Ended

09/30/21

Core

Bond

Ordinary

income

...........................................................................................

$

64,441,011‌

$

165,152,726‌

Long-term

capital

gains

......................................................................................

26,428,783‌

71,560,691‌

Return

of

capital

...........................................................................................

7,947,440‌

—‌

$

98,817,234‌

$

236,713,417‌

High

Yield

Bond

Ordinary

income

...........................................................................................

$

1,104,541,202‌

$

1,236,707,722‌

Return

of

capital

...........................................................................................

48,531,984‌

—‌

$

1,153,073,186‌

$

1,236,707,722‌

Low

Duration

Bond

Ordinary

income

...........................................................................................

$

139,938,270‌

$

107,425,825‌

Fund

Name

Undistributed

Ordinary

Income

Non-Expiring

Capital

Loss

Carryforwards

(a)

Net

Unrealized

Gains

(Losses)

(b)

Qualified

Late-year

Losses

(c)

Total

Core

Bond

..................................................

$

—‌

$

(208,220,514‌)

$

(465,297,239‌)

$

(3,919,292‌)

$

(677,437,045‌)

High

Yield

Bond

...............................................

—‌

—‌

(2,650,471,483‌)

(350,639,305‌)

(3,001,110,788‌)

Low

Duration

Bond

............................................

68,929,27

7‌

(241,389,96

8‌

)

(490,087,12

1‌

)

—‌

(662,547,812‌)

(a)

Amounts

available

to

offset

future

realized

capital

gains.

(b)

The

difference

between

book-basis

and

tax-basis

net

unrealized

gains

(losses)

were

attributable

primarily

to

the

tax

deferral

of

losses

on

wash

sales

and

straddles,

the

realization

for

tax

purposes

of

unrealized

gains/losses

on

certain

futures,

options

and

foreign

currency

contracts,

the

realization

for

tax

purposes

of

unrealized

gains

on

investments

in

passive

foreign

investment

companies,

the

timing

and

recognition

of

partnership

income,

amortization

methods

for

premiums

and

discounts

on

fixed

income

securities,

the

accrual

of

income

on

securities

in

default

and

the

accounting

for

swap

agreements.

(c)

The

Fund

has

elected

to

defer

certain

qualified

late-year

losses

and

recognize

such

losses

in

next

taxable

year.

Fund

Name

Amount

Utilized

High

Yield

Bond

......................................................................................................

$

24,888,654‌

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

Core

Bond

......................................................

$

4,162,720,247‌

$

19,077,709‌

$

(482,648,425‌)

$

(463,570,716‌)

High

Yield

Bond

..................................................

20,107,306,955‌

46,443,282‌

(2,682,860,624‌)

(2,636,417,342‌)

Low

Duration

Bond

................................................

7,532,875,246‌

44

,

482

,

192‌

(

533

,

588

,

572‌

)

(489,106,380‌)

Notes

to

Financial

Statements

(continued)

147

Notes

to

Financial

Statements

10.

 PRINCIPAL

RISKS 

In

the

normal

course

of

business, the

Funds

invest

in

securities

or

other

instruments

and

may

enter

into

certain

transactions,

and

such

activities

subject

each

Fund

to

various

risks,

including

among

others,

fluctuations

in

the

market

(market

risk)

or

failure

of

an

issuer

to

meet

all

of

its

obligations.

The

value

of

securities

or

other

instruments

may

also

be

affected

by

various

factors,

including,

without

limitation:

(i)

the

general

economy;

(ii)

the

overall

market

as

well

as

local,

regional

or

global

political

and/or

social

instability;

(iii)

regulation,

taxation

or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

and

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Funds

and their

investments.

Each

Fund’s

prospectus

provides

details

of

the

risks

to

which

each

Fund

is

subject. 

The

Funds

may

be

exposed

to

additional

risks

when

reinvesting

cash

collateral

in

money

market

funds

that

do

not

seek

to

maintain

a

stable

NAV

per

share

of

$1.00,

which

may

be

subject

to

redemption

gates

or

liquidity

fees

under

certain

circumstances.

Market

Risk

:

Each

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

each

Fund

to

reinvest

in

lower

yielding

securities. Each

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

each

Fund’s

portfolio

will

decline

if

each

Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

each

Fund

portfolio’s

current

earnings

rate.

Municipal

securities

are

subject

to

the

risk

that

litigation,

legislation

or

other

political

events,

local

business

or

economic

conditions,

credit

rating

downgrades,

or

the

bankruptcy

of

the

issuer

could

have

a

significant

effect

on

an

issuer’s

ability

to

make

payments

of

principal

and/or

interest

or

otherwise

affect

the

value

of

such

securities.

Municipal

securities

can

be

significantly

affected

by

political

or

economic

changes,

including

changes

made

in

the

law

after

issuance

of

the

securities,

as

well

as

uncertainties

in

the

municipal

market

related

to,

taxation,

legislative

changes

or

the

rights

of

municipal

security

holders,

including

in

connection

with

an

issuer

insolvency.

Municipal

securities

backed

by

current

or

anticipated

revenues

from

a

specific

project

or

specific

assets

can

be

negatively

affected

by

the

discontinuance

of

the

tax

benefits

supporting

the

project

or

assets

or

the

inability

to

collect

revenues

for

the

project

or

from

the

assets.

Municipal

securities

may

be

less

liquid

than

taxable

bonds,

and

there

may

be

less

publicly

available

information

on

the

financial

condition

of

municipal

security

issuers

than

for

issuers

of

other

securities.

An

outbreak

of

respiratory

disease

caused

by

a

novel

coronavirus

has

developed

into

a

global

pandemic

and

has

resulted

in

closing

borders,

quarantines,

disruptions

to

supply

chains

and

customer

activity,

as

well

as

general

concern

and

uncertainty.

The

impact

of

this

pandemic,

and

other

global

health

crises

that

may

arise

in

the

future,

could

affect

the

economies

of

many

nations,

individual

companies

and

the

market

in

general

in

ways

that

cannot

necessarily

be

foreseen

at

the

present

time.

This

pandemic

may

result

in

substantial

market

volatility

and

may

adversely

impact

the

prices

and

liquidity

of

a

fund’s

investments.

Although

vaccines

have

been

developed

and

approved

for

use

by

various

governments,

the duration

of

this

pandemic

and

its

effects

cannot

be

determined

with

certainty.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. A

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that a

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. A

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

each

Fund’s

NAV

to

experience

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of a

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which a

Fund

invests. 

The

price a

Fund

could

receive

upon

the

sale

of

any

particular

portfolio

investment

may

differ

from a

Fund’s

valuation

of

the

investment,

particularly

for

securities

that

trade

in

thin

or

volatile

markets

or

that

are

valued

using

a

fair

valuation

technique

or

a

price

provided

by

an

independent

pricing

service.

Changes

to

significant

unobservable

inputs

and

assumptions

(i.e.,

publicly

traded

company

multiples,

growth

rate,

time

to

exit)

due

to

the

lack

of

observable

inputs

may

significantly

impact

the

resulting

fair

value

and

therefore a

Fund’s

results

of

operations.

As

a

result,

the

price

received

upon

the

sale

of

an

investment

may

be

less

than

the

value

ascribed

by a

Fund,

and a

Fund

could

realize

a

greater

than

expected

loss

or

lesser

than

expected

gain

upon

the

sale

of

the

investment.

A

Fund’s

ability

to

value

its

investments

may

also

be

impacted

by

technological

issues

and/or

errors

by

pricing

services

or

other

third-party

service

providers. 

Counterparty

Credit

Risk:

The

Funds

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

including

making

timely

interest

and/or

principal

payments

or

otherwise

honoring

its

obligations.

The

Funds

manage

counterparty

credit

risk

by

entering

into

transactions

only

with

counterparties

that

the

Manager

believes

have

the

financial

resources

to

honor

their

obligations

and

by

monitoring

the

financial

stability

of

those

counterparties.

Financial

assets,

which

potentially

expose

the

Funds

to

market,

issuer

and

counterparty

credit

risks,

consist

principally

of

financial

instruments

and

receivables

due

from

counterparties.

The

extent

of

the

Funds’

exposure

to

market,

issuer

and

counterparty

credit

risks

with

respect

to

these

financial

assets

is

approximately

their

value

recorded

in

the

Statements

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Funds. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

For

OTC

options

purchased,

each

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Funds

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Funds

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Funds,

and

not

the

counterparty,

to

perform.

The

Funds

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

each

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

options

purchased,

exchange-traded

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Funds

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, a

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

148

cleared

swaps

with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Funds. 

Concentration

Risk:

 A

diversified

portfolio,

where

this

is appropriate

and

consistent

with

a

fund’s

objectives,

minimizes

the

risk

that

a

price

change

of

a

particular

investment

will

have

a

material

impact

on

the

NAV

of

a

fund.

The

investment

concentrations

within

each Fund’s

portfolio

are

disclosed

in

its Schedule

of

Investments.

Certain

Funds

invest

a

significant

portion

of their

assets

in

high

yield

securities.

High

yield

securities

that

are

rated

below

investment-grade

(commonly

referred

to

as

“junk

bonds”)

or

are

unrated

may

be

deemed

speculative,

involve

greater

levels

of

risk

than

higher-rated

securities

of

similar

maturity

and

are

more

likely

to

default.

High

yield

securities

may

be

issued

by

less

creditworthy

issuers,

and

issuers

of

high

yield

securities

may

be

unable

to

meet

their

interest

or

principal

payment

obligations.

High

yield

securities

are

subject

to

extreme

price

fluctuations,

may

be

less

liquid

than

higher

rated

fixed-income

securities,

even

under

normal

economic

conditions,

and

frequently

have

redemption

features.

The

Funds

invest

a

significant

portion

of

their

assets

in fixed-income securities and/or use

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Funds

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the

recent

period

of

historically

low

interest rates. The

Federal

Reserve

has

recently

begun

to

raise

the

federal

funds

rate

as

part

of

its

efforts

to

address

inflation.

There

is

a

risk

that

interest

rates

will

continue

to

rise,

which

will

likely

drive

down

the

prices

of

bonds

and

other

fixed-income

securities,

and

could

negatively

impact

the

Funds'

performance.

Certain

Funds

invest

a

significant

portion

of their

assets

in

securities

backed

by

commercial

or

residential

mortgage

loans

or

in

issuers

that

hold

mortgage

and

other

asset-

backed

securities.

When

a

Fund

concentrates

its

investments

in

this

manner,

it

assumes

a

greater

risk

of

prepayment

or

payment

extension

by

securities

issuers.

Changes

in

economic

conditions,

including

delinquencies

and/or

defaults

on

assets

underlying

these

securities,

can

affect

the

value,

income

and/or

liquidity

of

such

positions.

Investment

percentages

in

these

securities

are

presented

in

the

Schedules

of

Investments.

Significant

Shareholder

Redemption

Risk:

Certain

shareholders

may

own

or

manage

a

substantial

amount

of

fund

shares

and/or

hold

their

fund

investments

for

a

limited

period

of

time.

Large

redemptions

of

fund

shares

by

these

shareholders

may

force

a

fund

to

sell

portfolio

securities,

which

may

negatively

impact

the

fund’s

NAV,

increase

the

fund’s

brokerage

costs,

and/or

accelerate

the

realization

of

taxable

income/gains

and

cause

the

fund

to

make

additional

taxable

distributions

to

shareholders.

LIBOR

Transition

Risk:

The

United

Kingdom’s

Financial

Conduct

Authority

announced

a phase

out of

the

LIBOR.

Although

many

LIBOR

rates

ceased to

be

published

or

no

longer

are representative

of

the

underlying

market

they

seek

to

measure

after

December

31,

2021,

a

selection

of

widely

used

USD

LIBOR

rates

will

continue

to

be

published

through

June

2023

in

order

to

assist

with

the

transition.

The

Funds

may

be

exposed

to

financial

instruments

tied

to

LIBOR

to

determine

payment

obligations,

financing

terms,

hedging

strategies

or

investment

value.

The

transition

process

away

from

LIBOR

might

lead

to

increased

volatility

and

illiquidity

in

markets

for,

and

reduce

the

effectiveness

of

new

hedges

placed

against

instruments

whose

terms

currently

include

LIBOR.

The

ultimate

effect

of

the

LIBOR

transition

process

on

the

Funds

is

uncertain. 

11.

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

d

Year

Ended

09/30/22

Year

Ended

09/30/21

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Core

Bond

Institutional

Shares

sold

.............................................

110,405,739‌

$

990,658,359‌

146,861,908‌

$

1,465,303,277‌

Shares

issued

in

reinvestment

of

distributions

........................

6,161,533‌

56,576,464‌

13,416,841‌

135,058,084‌

Shares

redeemed

.........................................

(119,921,933‌)

(1,088,380,863‌)

(117,482,177‌)

(1,173,424,202‌)

(3,354,661‌)

$

(41,146,040‌)

42,796,572‌

$

426,937,159‌

Service

(a)

Shares

sold

.............................................

—‌

$

—‌

496,923‌

$

5,031,908‌

Shares

issued

in

reinvestment

of

distributions

........................

—‌

—‌

206,010‌

2,077,002‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

—‌

—‌

(4,964,009‌)

(49,405,453‌)

—‌

$

—‌

(4,261,076‌)

$

(42,296,543‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

10,200,394‌

$

94,656,100‌

21,327,998‌

$

213,818,647‌

Shares

issued

in

reinvestment

of

distributions

........................

1,014,598‌

9,337,644‌

2,677,486‌

26,987,670‌

Shares

redeemed

.........................................

(12,838,536‌)

(117,194,077‌)

(29,321,690‌)

(293,102,535‌)

(1,623,544‌)

$

(13,200,333‌)

(5,316,206‌)

$

(52,296,218‌)

Investor

C

Shares

sold

.............................................

187,938‌

$

1,693,765‌

761,644‌

$

7,755,757‌

Shares

issued

in

reinvestment

of

distributions

........................

33,837‌

313,239‌

148,749‌

1,490,084‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

(1,026,445‌)

(9,376,597‌)

(1,857,559‌)

(18,626,746‌)

(804,670‌)

$

(7,369,593‌)

(947,166‌)

$

(9,380,905‌)

Notes

to

Financial

Statements

(continued)

149

Notes

to

Financial

Statements

d

Year

Ended

09/30/22

Year

Ended

09/30/21

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Class

K

Shares

sold

.............................................

18,096,207‌

$

166,487,408‌

37,044,972‌

$

371,883,372‌

Shares

issued

in

reinvestment

of

distributions

........................

2,105,280‌

19,543,124‌

5,591,242‌

56,445,382‌

Shares

redeemed

.........................................

(44,550,656‌)

(405,282,743‌)

(44,846,318‌)

(447,284,268‌)

(24,349,169‌)

$

(219,252,211‌)

(2,210,104‌)

$

(18,955,514‌)

Class

R

Shares

sold

.............................................

38,343‌

$

354,956‌

35,518‌

$

357,673‌

Shares

issued

in

reinvestment

of

distributions

........................

2,767‌

25,451‌

7,401‌

74,754‌

Shares

redeemed

.........................................

(34,070‌)

(299,936‌)

(110,305‌)

(1,126,305‌)

7,040‌

$

80,471‌

(67,386‌)

$

(693,878‌)

(30,125,004‌)

$

(280,887,706‌)

29,994,634‌

$

303,314,101‌

High

Yield

Bond

Institutional

Shares

sold

.............................................

1,138,548,212‌

$

8,202,656,262‌

824,852,468‌

$

6,410,669,037‌

Shares

issued

in

reinvestment

of

distributions

........................

85,576,808‌

621,610,066‌

73,930,879‌

576,217,758‌

Shares

redeemed

.........................................

(1,444,371,612‌)

(10,400,328,995‌)

(671,776,568‌)

(5,229,340,817‌)

(220,246,592‌)

$

(1,576,062,667‌)

227,006,779‌

$

1,757,545,978‌

Service

Shares

sold

.............................................

5,353,719‌

$

39,744,030‌

11,246,499‌

$

87,722,006‌

Shares

issued

in

reinvestment

of

distributions

........................

781,120‌

5,708,250‌

784,180‌

6,115,039‌

Shares

redeemed

.........................................

(10,527,000‌)

(77,232,274‌)

(12,037,446‌)

(94,117,592‌)

(4,392,161‌)

$

(31,779,994‌)

(6,767‌)

$

(280,547‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

50,285,263‌

$

369,649,622‌

62,813,707‌

$

488,151,335‌

Shares

issued

in

reinvestment

of

distributions

........................

8,203,186‌

59,544,442‌

7,276,569‌

56,668,714‌

Shares

redeemed

.........................................

(69,091,386‌)

(504,878,029‌)

(66,322,210‌)

(516,851,805‌)

(10,602,937‌)

$

(75,683,965‌)

3,768,066‌

$

27,968,244‌

Investor

C

Shares

sold

.............................................

2,623,445‌

$

19,382,669‌

5,160,537‌

$

40,252,080‌

Shares

issued

in

reinvestment

of

distributions

........................

755,467‌

5,521,393‌

798,716‌

6,223,376‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

(8,811,320‌)

(64,375,562‌)

(10,845,575‌)

(84,458,348‌)

(5,432,408‌)

$

(39,471,500‌)

(4,886,322‌)

$

(37,982,892‌)

Class

K

Shares

sold

.............................................

447,318,572‌

$

3,229,587,783‌

425,944,961‌

$

3,303,403,535‌

Shares

issued

in

reinvestment

of

distributions

........................

49,202,259‌

357,550,162‌

61,687,273‌

479,747,223‌

Shares

redeemed

.........................................

(551,535,579‌)

(3,994,893,443‌)

(1,032,593,243‌)

(8,054,462,814‌)

(55,014,748‌)

$

(407,755,498‌)

(544,961,009‌)

$

(4,271,312,056‌)

Class

R

Shares

sold

.............................................

3,463,496‌

$

25,342,218‌

2,714,264‌

$

21,146,656‌

Shares

issued

in

reinvestment

of

distributions

........................

683,318‌

4,953,874‌

597,520‌

4,653,443‌

Shares

redeemed

.........................................

(3,914,325‌)

(28,534,490‌)

(4,351,405‌)

(33,709,657‌)

232,489‌

$

1,761,602‌

(1,039,621‌)

$

(7,909,558‌)

(295,456,357‌)

$

(2,128,992,022‌)

(320,118,874‌)

$

(2,531,970,831‌)

Low

Duration

Bond

Institutional

Shares

sold

.............................................

217,791,445‌

$

2,038,591,967‌

345,506,551‌

$

3,368,814,025‌

Shares

issued

in

reinvestment

of

distributions

........................

10,730,336‌

99,505,228‌

7,793,536‌

75,988,063‌

Shares

redeemed

.........................................

(348,516,501‌)

(3,236,111,469‌)

(249,280,518‌)

(2,429,961,590‌)

(119,994,720‌)

$

(1,098,014,274‌)

104,019,569‌

$

1,014,840,498‌

Service

(a)

Shares

sold

.............................................

—‌

$

—‌

475,605‌

$

4,641,229‌

Shares

issued

in

reinvestment

of

distributions

........................

—‌

—‌

23,759‌

231,652‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

—‌

—‌

(3,585,030‌)

(34,931,908‌)

—‌

$

—‌

(3,085,666‌)

$

(30,059,027‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

32,690,173‌

$

306,466,451‌

56,499,893‌

$

551,014,420‌

Shares

issued

in

reinvestment

of

distributions

........................

1,741,946‌

16,123,027‌

1,611,680‌

15,710,142‌

Shares

redeemed

.........................................

(54,874,888‌)

(510,300,908‌)

(80,279,964‌)

(781,941,813‌)

(20,442,769‌)

$

(187,711,430‌)

(22,168,391‌)

$

(215,217,251‌)

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

150

12.

SUBSEQUENT

EVENTS 

Management

has

evaluated

the

impact

of

all

subsequent

events

on

the

Funds

through

the

date

the

financial

statements

were

issued

and

has

determined

that

there

were

no

subsequent

events

requiring

adjustment

or

additional

disclosure

in

the

financial

statements.

d

Year

Ended

09/30/22

Year

Ended

09/30/21

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Investor

A1

Shares

sold

.............................................

423‌

$

3,923‌

7,719‌

$

75,282‌

Shares

issued

in

reinvestment

of

distributions

........................

7,482‌

69,366‌

6,876‌

67,063‌

Shares

redeemed

.........................................

(121,445‌)

(1,133,215‌)

(163,027‌)

(1,591,464‌)

(113,540‌)

$

(1,059,926‌)

(148,432‌)

$

(1,449,119‌)

Investor

C

Shares

sold

.............................................

1,311,344‌

$

12,219,407‌

2,247,567‌

$

21,899,495‌

Shares

issued

in

reinvestment

of

distributions

........................

36,869‌

338,902‌

22,017‌

214,438‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

(2,604,856‌)

(24,284,714‌)

(4,163,020‌)

(40,573,232‌)

(1,256,643‌)

$

(11,726,405‌)

(1,893,436‌)

$

(18,459,299‌)

Class

K

Shares

sold

.............................................

56,631,659‌

$

532,543,702‌

65,474,722‌

$

637,928,535‌

Shares

issued

in

reinvestment

of

distributions

........................

1,653,236‌

15,305,219‌

995,773‌

9,701,067‌

Shares

redeemed

.........................................

(63,921,319‌)

(599,769,631‌)

(26,875,494‌)

(261,964,532‌)

(5,636,424‌)

$

(51,920,710‌)

39,595,001‌

$

385,665,070‌

Class

R

Shares

sold

.............................................

203,589‌

$

1,899,990‌

101,987‌

$

994,041‌

Shares

issued

in

reinvestment

of

distributions

........................

3,385‌

31,176‌

1,866‌

18,179‌

Shares

redeemed

.........................................

(122,861‌)

(1,158,016‌)

(130,273‌)

(1,270,227‌)

84,113‌

$

773,150‌

(26,420‌)

$

(258,007‌)

(147,359,983‌)

$

(1,349,659,595‌)

116,292,225‌

$

1,135,062,865‌

(a)

On

July

6,

2021,

each

Fund's

issued

and

outstanding

Service

Shares,

as

applicable,

converted

into

Investor

A

Shares.

Report

of

Independent

Registered

Public

Accounting

Firm

151

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Shareholders

of

BlackRock

Core

Bond

Portfolio,

BlackRock

High

Yield

Bond

Portfolio

and

BlackRock

Low

Duration

Bond

Portfolio and

the

Board

of

Trustees

of

BlackRock

Funds

V:

Opinion

on

the

Financial

Statements

and

Financial

Highlights

We

have

audited

the

accompanying

statements

of

assets

and

liabilities

of

BlackRock

Core

Bond

Portfolio

and

BlackRock

Low

Duration

Bond

Portfolio of

BlackRock

Funds

V,

including

the

schedules

of

investments,

as

of

September

30,

2022,

the

related

statements

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

and

the

related

notes.

We

have

also

audited

the

accompanying

consolidated

statement

of

assets

and

liabilities

of

BlackRock

High

Yield

Bond

Portfolio

of

BlackRock

Funds

V

(collectively

with

BlackRock

Core

Bond

Portfolio

and

BlackRock

Low

Duration

Bond

Portfolio,

the

“Funds”),

including

the

consolidated

schedule

of

investments,

as

of September

30,

2022,

the

related

consolidated

statement

of

operations

for

the

year

then

ended,

the

consolidated

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

consolidated

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

and

the

related

notes.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Funds

as

of

September

30,

2022,

and

the

results

of

their

operations

for

the

year

then

ended,

the

changes

in

their

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB. 

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.  The

Funds

are

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

their

internal

control

over

financial

reporting.

As

part

of

our

audits

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Funds’

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights. Our

procedures

included

confirmation

of

securities

owned

as

of

September

30,

2022,

by

correspondence

with custodians

or

counterparties; when

replies

were

not

received,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

Deloitte

&

Touche

LLP

Boston,

Massachusetts

November

22,

2022

We

have

served

as

the

auditor

of

one

or

more

BlackRock

investment

companies

since

1992.

Important

Tax

Information

(unaudited)

2022

BlackRock

Annual

Report

to

Shareholders

152

The

following

amounts,

or maximum

amounts

allowable

by

law, are

hereby

designated

as

qualified

dividend

income

for

individuals

for

the

fiscal

year

ended

September

30,

2022:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

capital

gain

dividends,

subject

to

a

long-term

capital

gains

tax

rate

as

noted

below,

for

the

fiscal

year

ended

September

30,

2022:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable

by

law,

of

distributions

from

direct

federal

obligation

interest

for

the

fiscal

year

ended

September

30,

2022:

The

law

varies

in

each

state

as

to

whether

and

what

percent

of

ordinary

income

dividends

attributable

to

federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

check

with

their

tax

advisers

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

tax.

The

following

percentages,

or

maximum

percentages

allowable

by

law,

of

ordinary

income

distributions

paid

during

the

fiscal

year

ended

September

30,

2022

qualified

for

the

dividends-received

deduction

for

corporate

shareholders:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable by

law,

as

interest

income

eligible

to

be

treated

as

a

Section

163(j)

interest

dividend

for

the

fiscal

year

ended

September

30,

2022:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable

by

law,

as

interest-related

dividends

and

qualified

short-term

capital

gains eligible

for

exemption

from

U.S.

withholding

tax

for

nonresident

aliens

and

foreign

corporations

for

the

fiscal

year

ended

September

30,

2022:

Fund

Name

Qualified

Dividend

Income

Core

Bond

.......................................................................................................

$

1,111,204

High

Yield

Bond

....................................................................................................

29,841,301

Fund

Name

20%

Rate

Long-Term

Capital

Gain

Dividends

Core

Bond

.......................................................................................................

$

26,428,783

Fund

Name

Federal

Obligation

Interest

Core

Bond

.......................................................................................................

$

8,255,465

High

Yield

Bond

....................................................................................................

63,245

Low

Duration

Bond

.................................................................................................

17,878,846

Fund

Name

Dividends-Received

Deduction

Core

Bond

.........................................................................................................

1.30

%

High

Yield

Bond

......................................................................................................

1.86

Fund

Name

Interest

Dividends

Core

Bond

.......................................................................................................

$

73,521,992

High

Yield

Bond

....................................................................................................

1,006,377,438

Low

Duration

Bond

.................................................................................................

142,960,186

Fund

Name

Interest-Related

Dividends

Qualified

Short-Term

Capital

Gain

Core

Bond

....................................................................................

$

59,510,649

$

—

High

Yield

Bond

.................................................................................

961,683,643

6,930,558

Low

Duration

Bond

..............................................................................

105,583,883

—

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

153

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

The

Board

of

Trustees

(the

“Board,”

the

members

of

which

are

referred

to

as

“Board

Members”)

of

BlackRock

Funds

V

(the

“Trust”)

met

on

April

14,

2022

(the

“April

Meeting”)

and

May

19-20,

2022

(the

“May

Meeting”)

to

consider

the

approval

to

continue

the

investment

advisory

agreement

(the

“Advisory

Agreement”)

between

the

Trust,

on

behalf

of

BlackRock

Core

Bond

Portfolio

(the

“Core

Bond

Portfolio”),

BlackRock

High

Yield

Bond

Portfolio

(the

“High

Yield

Bond

Portfolio”)

and

BlackRock

Low

Duration

Bond

Portfolio

(the

“Low

Duration

Bond

Portfolio”

and

collectively

with

the

Core

Bond

Portfolio

and

the

High

Yield

Bond

Portfolio,

the

“Funds”

and

each,

a

“Fund,”),

and

BlackRock

Advisors,

LLC

(the

“Manager”),

each

Fund’s

investment

advisor.

The

Board

also

considered

the

approval

to

continue

the

sub-advisory

agreements

(the

“Sub-

Advisory

Agreements”)

between

(1)

the

Manager

and

BlackRock

International

Limited

(“BIL”),

with

respect

to

each

Fund,

and

(2)

the

Manager

and

BlackRock

(Singapore)

Limited

(“BRS”

and

together

with

BIL,

the

“Sub-Advisors”),

with

respect

to

Core

Bond

Portfolio

and

Low

Duration

Portfolio.

The

Manager

and

the

Sub-Advisors

are

referred

to

herein

as

“BlackRock.”

The

Advisory

Agreement

and

the

Sub-Advisory

Agreements

are

referred

to

herein

as

the

“Agreements.”

The

Approval

Process

Consistent

with

the

requirements

of

the

Investment

Company

Act

of

1940

(the

“1940

Act”),

the

Board

considers

the

approval

of

the

continuation

of

the

Agreements

for

each

Fund

on

an

annual

basis.

The

Board

members

who

are

not

“interested

persons”

of

the

Trust,

as

defined

in

the

1940

Act,

are

considered

independent

Board

members

(the

“Independent

Board

Members”).

The

Board’s

consideration

entailed

a

year-long

deliberative

process

during

which

the

Board

and

its

committees

assessed

BlackRock’s

various

services

to

each

Fund,

including

through

the

review

of

written

materials

and

oral

presentations,

and

the

review

of

additional

information

provided

in

response

to

requests

from

the

Independent

Board

Members.

The

Board

had

four

quarterly

meetings

per

year,

each

typically

extending

for

two

days,

as

well

as

additional

ad

hoc

meetings

and

executive

sessions

throughout

the

year,

as

needed.

The

committees

of

the

Board

similarly

met

throughout

the

year.

The

Board

also

had

an

additional

one-day

meeting

to

consider

specific

information

surrounding

the

renewal

of

the

Agreements.

In

particular,

the

Board

assessed,

among

other

things,

the

nature,

extent

and

quality

of

the

services

provided

to

each

Fund

by

BlackRock,

BlackRock’s

personnel

and

affiliates,

including

(as

applicable):

investment

management

services;

accounting

oversight;

administrative

and

shareholder

services;

oversight

of

each

Fund’s

service

providers;

risk

management

and

oversight;

and

legal,

regulatory

and

compliance

services.

Throughout

the

year,

including

during

the

contract

renewal

process,

the

Independent

Board

Members

were

advised

by

independent

legal

counsel,

and

met

with

independent

legal

counsel

in

various

executive

sessions

outside

of

the

presence

of

BlackRock’s

management.

During

the

year,

the

Board,

acting

directly

and

through

its

committees,

considered

information

that

was

relevant

to

its

annual

consideration

of

the

renewal

of

the

Agreements,

including

the

services

and

support

provided

by

BlackRock

to

each

Fund

and

its

shareholders.

BlackRock

also

furnished

additional

information

to

the

Board

in

response

to

specific

questions

from

the

Board.

Among

the

matters

the

Board

considered

were:

(a)

investment

performance

for

one-year,

three-year,

five-year,

and/or

since

inception

periods,

as

applicable,

against

peer

funds,

relevant

benchmarks,

and

other

performance

metrics,

as

applicable,

as

well

as

BlackRock

senior

management’s

and

portfolio

managers’

analyses

of

the

reasons

for

any

outperformance

or

underperformance

relative

to

its

peers,

benchmarks,

and

other

performance

metrics,

as

applicable;

(b)

fees,

including

advisory,

administration,

if

applicable,

and

other

amounts

paid

to

BlackRock

and

its

affiliates

by

each

Fund

for

services;

(c)

Fund

operating

expenses

and

how

BlackRock

allocates

expenses

to

each

Fund;

(d)

the

resources

devoted

to,

risk

oversight

of,

and

compliance

reports

relating

to,

implementation

of

each

Fund’s

investment

objective,

policies

and

restrictions,

and

meeting

regulatory

requirements;

(e)

BlackRock’s

and

each

Fund’s

adherence

to

applicable

compliance

policies

and

procedures;

(f)

the

nature,

character

and

scope

of

non-investment

management

services

provided

by

BlackRock

and

its

affiliates

and

the

estimated

cost

of

such

services,

as

applicable;

(g)

BlackRock’s

and

other

service

providers’

internal

controls

and

risk

and

compliance

oversight

mechanisms;

(h)

BlackRock’s

implementation

of

the

proxy

voting

policies

approved

by

the

Board;

(i)

execution

quality

of

portfolio

transactions;

(j)

BlackRock’s

implementation

of

each

Fund’s

valuation

and

liquidity

procedures;

(k)

an

analysis

of

management

fees

paid

to

BlackRock

for

products

with

similar

investment

mandates

across

the

open-end

fund,

exchange-traded

fund

(“ETF”),

closed-end

fund,

sub-advised

mutual

fund,

separately

managed

account,

collective

investment

trust,

and

institutional

separate

account

product

channels,

as

applicable,

and

the

similarities

and

differences

between

these

products

and

the

services

provided

as

compared

to

each

Fund;

(l)

BlackRock’s

compensation

methodology

for

its

investment

professionals

and

the

incentives

and

accountability

it

creates,

along

with

investment

professionals’

investments

in

the

fund(s)

they

manage;

and

(m)

periodic

updates

on

BlackRock’s

business.

Prior

to

and

in

preparation

for

the

April

Meeting,

the

Board

received

and

reviewed

materials

specifically

relating

to

the

renewal

of

the

Agreements.

The

Independent

Board

Members

continuously

engaged

in

a

process

with

their

independent

legal

counsel

and

BlackRock

to

review

the

nature

and

scope

of

the

information

provided

to

the

Board

to

better

assist

its

deliberations.

The

materials

provided

in

connection

with

the

April

Meeting

included,

among

other

things:

(a)

information

independently

compiled

and

prepared

by

Broadridge

Financial

Solutions,

Inc.

(“Broadridge”),

based

on

either

a

Lipper

classification

or

Morningstar

category,

regarding

each

Fund’s

fees

and

expenses

as

compared

with

a

peer

group

of

funds

as

determined

by

Broadridge

(“Expense

Peers”)

and

the

investment

performance

of

each

Fund

as

compared

with

a

peer

group

of

funds

(“Performance

Peers”);

(b)

information

on

the

composition

of

the

Expense

Peers

and

Performance

Peers

and

a

description

of

Broadridge’s

methodology;

(c)

information

on

the

estimated

profits

realized

by

BlackRock

and

its

affiliates

pursuant

to

the

Agreements

and

a

discussion

of

fall-out

benefits

to

BlackRock

and

its

affiliates;

(d)

a

general

analysis

provided

by

BlackRock

concerning

investment

management

fees

received

in

connection

with

other

types

of

investment

products,

such

as

institutional

accounts,

sub-advised

mutual

funds,

ETFs,

closed-end

funds,

open-end

funds,

and

separately

managed

accounts,

under

similar

investment

mandates,

as

well

as

the

performance

of

such

other

products,

as

applicable;

(e)

a

review

of

non-management

fees;

(f)

the

existence,

impact

and

sharing

of

potential

economies

of

scale,

if

any,

with

each

Fund;

(g)

a

summary

of

aggregate

amounts

paid

by

each

Fund

to

BlackRock;

(h)

sales

and

redemption

data

regarding

each

Fund’s

shares;

and

(i)

various

additional

information

requested

by

the

Board

as

appropriate

regarding

BlackRock’s

and

each

Fund’s

operations.

At

the

April

Meeting,

the

Board

reviewed

materials

relating

to

its

consideration

of

the

Agreements

and

the

Independent

Board

Members

presented

BlackRock

with

questions

and

requests

for

additional

information.

BlackRock

responded

to

these

questions

and

requests

with

additional

written

information

in

advance

of

the

May

Meeting.

At

the

May

Meeting,

the

Board

concluded

its

assessment

of,

among

other

things:

(a) the

nature,

extent

and

quality

of

the

services

provided

by

BlackRock;

(b) the

investment

performance

of

each

Fund

as

compared

to

its

Performance

Peers

and

to

other

metrics,

as

applicable;

(c) the

advisory

fee

and

the

estimated

cost

of

the

services

and

estimated

profits

realized

by

BlackRock

and

its

affiliates

from

their

relationship

with

each

Fund;

(d) each

Fund’s

fees

and

expenses

compared

to

its

Expense

Peers;

(e)

the

existence

and

sharing

of

potential

economies

of

scale;

(f)

any

fall-out

benefits

to

BlackRock

and

its

affiliates

as

a

result

of

BlackRock’s

relationship

with

each

Fund;

and

(g) other

factors

deemed

relevant

by

the

Board

Members.

The

Board

also

considered

other

matters

it

deemed

important

to

the

approval

process,

such

as

other

payments

made

to

BlackRock

or

its

affiliates

relating

to

securities

lending

and

cash

management,

and

BlackRock’s

services

related

to

the

valuation

and

pricing

of

Fund

portfolio

holdings.

The

Board

noted

the

willingness

of

BlackRock’s

personnel

to

engage

in

open,

candid

discussions

with

the

Board.

The

Board

Members

evaluated

the

information

available

to

it

on

a

fund-by-fund

basis.

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

154

The

following

paragraphs

provide

more

information

about

some

of

the

primary

factors

that

were

relevant

to

the

Board’s

decision.

The

Board

Members

did

not

identify

any

particular

information,

or

any

single

factor

as

determinative,

and

each

Board

Member

may

have

attributed

different

weights

to

the

various

items

and

factors

considered.

A.

Nature,

Extent

and

Quality

of

the

Services

Provided

by

BlackRock

The

Board,

including

the

Independent

Board

Members,

reviewed

the

nature,

extent

and

quality

of

services

provided

by

BlackRock,

including

the

investment

advisory

services,

and

the

resulting

performance

of

each

Fund.

Throughout

the

year,

the

Board

compared

Fund

performance

to

the

performance

of

a

comparable

group

of

mutual

funds,

relevant

benchmarks,

and

performance

metrics,

as

applicable.

The

Board

met

with

BlackRock’s

senior

management

personnel

responsible

for

investment

activities,

including

the

senior

investment

officers.

The

Board

also

reviewed

the

materials

provided

by

each

Fund’s

portfolio

management

team

discussing

each

Fund’s

performance,

investment

strategies

and

outlook.

The

Board

considered,

among

other

factors,

with

respect

to

BlackRock:

the

number,

education

and

experience

of

investment

personnel

generally

and

each

Fund’s

portfolio

management

team;

research

capabilities;

investments

by

portfolio

managers

in

the

funds

they

manage;

portfolio

trading

capabilities;

use

of

technology;

commitment

to

compliance;

credit

analysis

capabilities;

risk

analysis

and

oversight

capabilities;

and

the

approach

to

training

and

retaining

portfolio

managers

and

other

research,

advisory

and

management

personnel.

The

Board

also

considered

BlackRock’s

overall

risk

management

program,

including

the

continued

efforts

of

BlackRock

and

its

affiliates

to

address

cybersecurity

risks

and

the

role

of

BlackRock’s

Risk

&

Quantitative

Analysis

Group.

The

Board

engaged

in

a

review

of

BlackRock’s

compensation

structure

with

respect

to

each

Fund’s

portfolio

management

team

and

BlackRock’s

ability

to

attract

and

retain

high-quality

talent

and

create

performance

incentives.

In

addition

to

investment

advisory

services,

the

Board

considered

the

nature

and

quality

of

the

administrative

and

other

non-investment

advisory

services

provided

to

each

Fund.

BlackRock

and

its

affiliates

provide

each

Fund

with

certain

administrative,

shareholder

and

other

services

(in

addition

to

any

such

services

provided

to

each

Fund

by

third

parties)

and

officers

and

other

personnel

as

are

necessary

for

the

operations

of

each

Fund.

In

particular,

BlackRock

and

its

affiliates

provide

each

Fund

with

administrative

services

including,

among

others:

(i)

responsibility

for

disclosure

documents,

such

as

the

prospectus,

the

summary

prospectus

(as

applicable),

the

statement

of

additional

information

and

periodic

shareholder

reports;

(ii)

oversight

of

daily

accounting

and

pricing;

(iii)

responsibility

for

periodic

filings

with

regulators;

(iv)

overseeing

and

coordinating

the

activities

of

third-party

service

providers

including,

among

others,

each

Fund’s

custodian,

fund

accountant,

transfer

agent,

and

auditor;

(v)

organizing

Board

meetings

and

preparing

the

materials

for

such

Board

meetings;

(vi)

providing

legal

and

compliance

support;

(vii)

furnishing

analytical

and

other

support

to

assist

the

Board

in

its

consideration

of

strategic

issues

such

as

the

merger,

consolidation

or

repurposing

of

certain

open-end

funds;

and

(viii)

performing

or

managing

administrative

functions

necessary

for

the

operation

of

each

Fund,

such

as

tax

reporting,

expense

management,

fulfilling

regulatory

filing

requirements,

overseeing

each

Fund’s

distribution

partners,

and

shareholder

call

center

and

other

services.

The

Board

reviewed

the

structure

and

duties

of

BlackRock’s

fund

administration,

shareholder

services,

and

legal

and

compliance

departments

and

considered

BlackRock’s

policies

and

procedures

for

assuring

compliance

with

applicable

laws

and

regulations.

The

Board

considered

the

operation

of

BlackRock’s

business

continuity

plans,

including

in

light

of

the

ongoing

COVID-19

pandemic.

B.

The

Investment

Performance

of

each

Fund

and

BlackRock

The

Board,

including

the

Independent

Board

Members,

reviewed

and

considered

the

performance

history

of

each

Fund

throughout

the

year

and

at

the

April

meeting.

In

preparation

for

the

April

Meeting,

the

Board

was

provided

with

reports

independently

prepared

by

Broadridge,

which

included

an

analysis

of

each

Fund’s

performance

as

of

December

31,

2021,

as

compared

to

its

Performance

Peers.

Broadridge

ranks

funds

in

quartiles,

ranging

from

first

to

fourth,

where

first

is

the

most

desirable

quartile

position

and

fourth

is

the

least

desirable.

In

connection

with

its

review,

the

Board

received

and

reviewed

information

regarding

the

investment

performance

of

each

Fund

as

compared

to

its

Performance

Peers.

The

Board

and

its

Performance

Oversight

Committee

regularly

review

and

meet

with

Fund

management

to

discuss

the

performance

of

each

Fund

throughout

the

year.

In

evaluating

performance,

the

Board

focused

particular

attention

on

funds

with

less

favorable

performance

records.

The

Board

also

noted

that

while

it

found

the

data

provided

by

Broadridge

generally

useful,

it

recognized

the

limitations

of

such

data,

including

in

particular,

that

notable

differences

may

exist

between

a

fund

and

its

Performance

Peers

(for

example,

the

investment

objectives

and

strategies).

Further,

the

Board

recognized

that

the

performance

data

reflects

a

snapshot

of

a

period

as

of

a

particular

date

and

that

selecting

a

different

performance

period

could

produce

significantly

different

results.

The

Board

also

acknowledged

that

long-term

performance

could

be

impacted

by

even

one

period

of

significant

outperformance

or

underperformance,

and

that

a

single

investment

theme

could

have

the

ability

to

disproportionately

affect

long-term

performance.

The

Board

noted

that

for

the

one-,

three-

and

five-year

periods

reported,

the

Core

Bond

Portfolio

ranked

in

the

second,

first

and

second

quartiles,

respectively,

against

its

Performance

Peers.

The

Board

noted

that

for

each

of

the

one-,

three-

and

five-year

periods

reported,

the

High

Yield

Bond

Portfolio

ranked

in

the

first

quartile

against

its

Performance

Peers.

The

Board

noted

that

for

the

one-,

three-

and

five-year

periods

reported,

the

Low

Duration

Bond

Portfolio

ranked

in

the

second,

third

and

third

quartiles,

respectively,

against

its

Performance

Peers.

The

Board

and

BlackRock

reviewed

the

Low

Duration

Bond

Portfolio’s

underperformance

relative

to

its

Performance

Peers

during

the

applicable

periods.

C.

Consideration

of

the

Advisory/Management

Fees

and

the

Estimated

Cost

of

the

Services

and

Estimated

Profits

Realized

by

BlackRock

and

its

Affiliates

from

their

Relationship

with

each

Fund

The

Board,

including

the

Independent

Board

Members,

reviewed

each

Fund’s

contractual

management

fee

rate

compared

with

those

of

its

Expense

Peers.

The

contractual

management

fee

rate

represents

a

combination

of

the

advisory

fee

and

any

administrative

fees,

before

taking

into

account

any

reimbursements

or

fee

waivers.

The

Board

also

compared

each

Fund’s

total

expense

ratio,

as

well

as

its

actual

management

fee

rate,

to

those

of

its

Expense

Peers.

The

total

expense

ratio

represents

a

fund’s

total

net

operating

expenses,

including

any

12b-1

or

non-12b-1

service

fees.

The

total

expense

ratio

gives

effect

to

any

expense

reimbursements

or

fee

waivers,

and

the

actual

management

fee

rate

gives

effect

to

any

management

fee

reimbursements

or

waivers.

The

Board

considered

the

services

provided

and

the

fees

charged

by

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

(continued)

155

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

BlackRock

and

its

affiliates

to

other

types

of

clients

with

similar

investment

mandates,

as

applicable,

including

institutional

accounts

and

sub-advised

mutual

funds

(including

mutual

funds

sponsored

by

third

parties).

The

Board

received

and

reviewed

statements

relating

to

BlackRock’s

financial

condition.

The

Board

reviewed

BlackRock’s

profitability

methodology

and

was

also

provided

with

an

estimated

profitability

analysis

that

detailed

the

revenues

earned

and

the

expenses

incurred

by

BlackRock

for

services

provided

to

each

Fund.

The

Board

reviewed

BlackRock’s

estimated

profitability

with

respect

to

each

Fund

and

other

funds

the

Board

currently

oversees

for

the

year

ended

December

31,

2021

compared

to

available

aggregate

estimated

profitability

data

provided

for

the

prior

two

years.

The

Board

reviewed

BlackRock’s

estimated

profitability

with

respect

to

certain

other

U.S.

fund

complexes

managed

by

the

Manager

and/or

its

affiliates.

The

Board

reviewed

BlackRock’s

assumptions

and

methodology

of

allocating

expenses

in

the

estimated

profitability

analysis,

noting

the

inherent

limitations

in

allocating

costs

among

various

advisory

products.

The

Board

recognized

that

profitability

may

be

affected

by

numerous

factors

including,

among

other

things,

fee

waivers

and

expense

reimbursements

by

the

Manager,

the

types

of

funds

managed,

precision

of

expense

allocations

and

business

mix.

The

Board

thus

recognized

that

calculating

and

comparing

profitability

at

the

individual

fund

level

is

difficult.

The

Board

noted

that,

in

general,

individual

fund

or

product

line

profitability

of

other

advisors

is

not

publicly

available.

The

Board

reviewed

BlackRock’s

overall

operating

margin,

in

general,

compared

to

that

of

certain

other

publicly

traded

asset

management

firms.

The

Board

considered

the

differences

between

BlackRock

and

these

other

firms,

including

the

contribution

of

technology

at

BlackRock,

BlackRock’s

expense

management,

and

the

relative

product

mix.

The

Board

considered

whether

BlackRock

has

the

financial

resources

necessary

to

attract

and

retain

high

quality

investment

management

personnel

to

perform

its

obligations

under

the

Agreements

and

to

continue

to

provide

the

high

quality

of

services

that

is

expected

by

the

Board.

The

Board

further

considered

factors

including

but

not

limited

to

BlackRock’s

commitment

of

time,

assumption

of

risk,

and

liability

profile

in

servicing

each

Fund,

including

in

contrast

to

what

is

required

of

BlackRock

with

respect

to

other

products

with

similar

investment

mandates

across

the

open-end

fund,

ETF,

closed-end

fund,

sub-advised

mutual

fund,

separately

managed

account,

collective

investment

trust,

and

institutional

separate

account

product

channels,

as

applicable.

The

Board

noted

that

the

Core

Bond

Portfolio’s

contractual

management

fee

rate

ranked

in

the

third

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

ranked

in

the

second

and

third

quartiles,

respectively,

relative

to

the

Core

Bond

Portfolio’s

Expense

Peers.

The

Board

also

noted

that

the

Core

Bond

Portfolio

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

Core

Bond

Portfolio

increases

above

certain

contractually

specified

levels.

The

Board

noted

that

if

the

size

of

the

Core

Bond

Portfolio

were

to

decrease,

the

Core

Bond

Portfolio

could

lose

the

benefit

of

one

or

more

breakpoints.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

Core

Bond

Portfolio’s

total

expenses

as

a

percentage

of

the

Core

Bond

Portfolio’s

average

daily

net

assets

on

a

class-by-class

basis.

The

Board

noted

that

the

High

Yield

Bond

Portfolio’s

contractual

management

fee

rate

ranked

in

the

first

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

each

ranked

in

the

first

quartile,

relative

to

the

High

Yield

Bond

Portfolio’s

Expense

Peers.

The

Board

also

noted

that

the

High

Yield

Bond

Portfolio

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

High

Yield

Bond

Portfolio

increases

above

certain

contractually

specified

levels.

The

Board

noted

that

if

the

size

of

the

High

Yield

Bond

Portfolio

were

to

decrease,

the

High

Yield

Bond

Portfolio

could

lose

the

benefit

of

one

or

more

breakpoints.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

High

Yield

Bond

Portfolio’s

total

expenses

as

a

percentage

of

the

High

Yield

Bond

Portfolio’s

average

daily

net

assets

on

a

class-by-class

basis.

The

Board

noted

that

the

Low

Duration

Bond

Portfolio’s

contractual

management

fee

rate

ranked

in

the

second

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

ranked

in

the

second

and

first

quartiles,

respectively,

relative

to

the

Low

Duration

Bond

Portfolio’s

Expense

Peers.

The

Board

also

noted

that

the

Low

Duration

Bond

Portfolio

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

Low

Duration

Bond

Portfolio

increases

above

certain

contractually

specified

levels.

The

Board

noted

that

if

the

size

of

the

Low

Duration

Bond

Portfolio

were

to

decrease,

the

Low

Duration

Bond

Portfolio

could

lose

the

benefit

of

one

or

more

breakpoints.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

Low

Duration

Bond

Portfolio’s

total

expenses

as

a

percentage

of

the

Low

Duration

Bond

Portfolio’s

average

daily

net

assets

on

a

class-by-class

basis.

D.

Economies

of

Scale

The

Board,

including

the

Independent

Board

Members,

considered

the

extent

to

which

economies

of

scale

might

be

realized

as

the

assets

of

each

Fund

increase,

including

the

existence

of

fee

waivers

and/or

expense

caps,

as

applicable,

noting

that

any

contractual

fee

waivers

and

contractual

expense

caps

had

been

approved

by

the

Board.

In

its

consideration,

the

Board

further

considered

the

continuation

and/or

implementation

of

fee

waivers

and/or

expense

caps,

as

applicable.

The

Board

also

considered

the

extent

to

which

each

Fund

benefits

from

such

economies

of

scale

in

a

variety

of

ways,

and

whether

there

should

be

changes

in

the

advisory

fee

rate

or

breakpoint

structure

in

order

to

enable

each

Fund

to

more

fully

participate

in

these

economies

of

scale.

The

Board

considered

each

Fund’s

asset

levels

and

whether

the

current

fee

schedule

was

appropriate.

E.

Other

Factors

Deemed

Relevant

by

the

Board

Members

The

Board,

including

the

Independent

Board

Members,

also

took

into

account

other

ancillary

or

“fall-out”

benefits

that

BlackRock

or

its

affiliates

may

derive

from

BlackRock’s

respective

relationships

with

each

Fund,

both

tangible

and

intangible,

such

as

BlackRock’s

ability

to

leverage

its

investment

professionals

who

manage

other

portfolios

and

its

risk

management

personnel,

an

increase

in

BlackRock’s

profile

in

the

investment

advisory

community,

and

the

engagement

of

BlackRock’s

affiliates

as

service

providers

to

each

Fund,

including

for

administrative,

distribution,

securities

lending

and

cash

management

services.

The

Board

also

considered

BlackRock’s

overall

operations

and

its

efforts

to

expand

the

scale

of,

and

improve

the

quality

of,

its

operations.

The

Board

also

noted

that,

subject

to

applicable

law,

BlackRock

may

use

and

benefit

from

third-party

research

obtained

by

soft

dollars

generated

by

certain

registered

fund

transactions

to

assist

in

managing

all

or

a

number

of

its

other

client

accounts.

In

connection

with

its

consideration

of

the

Agreements,

the

Board

also

received

information

regarding

BlackRock’s

brokerage

and

soft

dollar

practices.

The

Board

received

reports

from

BlackRock

which

included

information

on

brokerage

commissions

and

trade

execution

practices

throughout

the

year.

The

Board

noted

the

competitive

nature

of

the

open-end

fund

marketplace,

and

that

shareholders

are

able

to

redeem

their

Fund

shares

if

they

believe

that

each

Fund’s

fees

and

expenses

are

too

high

or

if

they

are

dissatisfied

with

the

performance

of

each

Fund.

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

156

Conclusion

At

the

May

Meeting,

as

a

result

of

the

discussions

that

occurred

during

the

April

Meeting,

and

as

a

culmination

of

the

Board’s

year-long

deliberative

process,

the

Board,

including

the

Independent

Board

Members,

approved,

by

unanimous

vote

of

those

present,

the

continuation

of

the

Advisory

Agreement

between

the

Manager

and

the

Trust,

on

behalf

of

each

Fund,

for

a

one-year

term

ending

June

30,

2023,

and

the

Sub-Advisory

Agreements

between

the

Manager

and

the

Sub-Advisors,

with

respect

to

each

Fund,

for

a

one-year

term

ending

June

30,

2023.

Based

upon

its

evaluation

of

all

of

the

aforementioned

factors

in

their

totality,

as

well

as

other

information,

the

Board,

including

the

Independent

Board

Members,

was

satisfied

that

the

terms

of

the

Agreements

were

fair

and

reasonable

and

in

the

best

interest

of

each

Fund

and

its

shareholders.

In

arriving

at

its

decision

to

approve

the

Agreements,

the

Board

did

not

identify

any

single

factor

or

group

of

factors

as

all-important

or

controlling,

but

considered

all

factors

together,

and

different

Board

Members

may

have

attributed

different

weights

to

the

various

factors

considered.

The

Independent

Board

Members

were

also

assisted

by

the

advice

of

independent

legal

counsel

in

making

this

determination.

Trustee

and

Officer

Information

157

Trustee

and

Officer

Information

Independent

Trustees

(a)

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

R.

Glenn

Hubbard

1958

Chair

of

the

Board

(Since

2022)

Trustee

(Since

2019)

Dean,

Columbia

Business

School

from

2004

to

2019;

Faculty

member,

Columbia

Business

School

since

1988.

69

RICs

consisting

of

100

Portfolios

ADP

(data

and

information

services)

2004-2020;

Metropolitan

Life

Insurance

Company

(insurance);

KKR

Financial

Corporation

(finance)

from

2004

until

2014

W.

Carl

Kester

(d)

1951

Vice

Chair

of

the

Board

(Since

2022)

Trustee

(Since

2019)

George

Fisher

Baker

Jr.

Professor

of

Business

Administration,

Harvard

Business

School

since

2008;

Deputy

Dean

for

Academic

Affairs

from

2006

to

2010;

Chairman

of

the

Finance

Unit,

from

2005

to

2006;

Senior

Associate

Dean

and

Chairman

of

the

MBA

Program

from

1999

to

2005;

Member

of

the

faculty

of

Harvard

Business

School

since

1981.

71

RICs

consisting

of

102

Portfolios

None

Cynthia

L.

Egan

1955

Trustee

(Since

2019)

Advisor,

U.S.

Department

of

the

Treasury

from

2014

to

2015;

President,

Retirement

Plan

Services,

for

T.

Rowe

Price

Group,

Inc.

from

2007

to

2012;

executive

positions

within

Fidelity

Investments

from

1989

to

2007.

69

RICs

consisting

of

100

Portfolios

Unum

(insurance);

The

Hanover

Insurance

Group

(Board

Chair)

(insurance);

Huntsman

Corporation

(Lead

Independent

Director

and

non

Executive

Vice

Chair

of

the

Board)

(chemical

products);

Envestnet

(investment

platform)

from

2013

until

2016

Frank

J.

Fabozzi

(d)

1948

Trustee

(Since

2019)

Editor

of

The

Journal

of

Portfolio

Management

since

1986;

Professor

of

Finance,

EDHEC

Business

School

(France)

from

2011

to

2022;

Professor

of

Practice,

Johns

Hopkins

University

since

2021;

Visiting

Professor,

Princeton

University

for

the

2013

to

2014

academic

year

and

Spring

2017

semester;

Professor

in

the

Practice

of

Finance,

Yale

University

School

of

Management

from

1994

to

2011

and

currently

a

Teaching

Fellow

in

Yale's

Executive

Programs;

Board

Member,

BlackRock

Equity-Liquidity

Funds

from

2014

to

2016;

affiliated

professor

Karlsruhe

Institute

of

Technology

from

2008

to

2011;

Visiting

Professor,

Rutgers

University

for

the

Spring

2019

semester;

Visiting

Professor,

New

York

University

for

the

2019

academic

year;

Adjunct

Professor

of

Finance,

Carnegie

Mellon

University

in

fall

2020

semester.

71

RICs

consisting

of

102

Portfolios

None

Lorenzo

A.

Flores

1964

Trustee

(Since

2021)

Vice

Chairman,

Kioxia,

Inc.

since

2019;

Chief

Financial

Officer,

Xilinx,

Inc.

from

2016

to

2019;

Corporate

Controller,

Xilinx,

Inc.

from

2008

to

2016.

69

RICs

consisting

of

100

Portfolios

None

Stayce

D.

Harris

1959

Trustee

(Since

2021)

Lieutenant

General,

Inspector

General,

Office

of

the

Secretary

of

the

United

States

Air

Force

from

2017

to

2019;

Lieutenant

General,

Assistant

Vice

Chief

of

Staff

and

Director,

Air

Staff,

United

States

Air

Force

from

2016

to

2017;

Major

General,

Commander,

22nd

Air

Force,

AFRC,

Dobbins

Air

Reserve

Base,

Georgia

from

2014

to

2016;

Pilot,

United

Airlines

from

1990

to

2020.

69

RICs

consisting

of

100

Portfolios

The

Boeing

Company

J.

Phillip

Holloman

1955

Trustee

(Since

2021)

President

and

Chief

Operating

Officer,

Cintas

Corporation

from

2008

to

2018.

69

RICs

consisting

of

100

Portfolios

PulteGroup,

Inc.

(home

construction);

Rockwell

Automation

Inc.

(industrial

automation)

Catherine

A.

Lynch

(d)

1961

Trustee

(Since

2019)

Chief

Executive

Officer,

Chief

Investment

Officer

and

various

other

positions,

National

Railroad

Retirement

Investment

Trust

from

2003

to

2016;

Associate

Vice

President

for

Treasury

Management,

The

George

Washington

University

from

1999

to

2003;

Assistant

Treasurer,

Episcopal

Church

of

America

from

1995

to

1999.

71

RICs

consisting

of

102

Portfolios

PennyMac

Mortgage

Investment

Trust

Trustee

and

Officer

Information

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

158

Interested

Trustees

(a)(e)

(a)

The

address

of

each

Trustee

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Each

Independent

Trustee

holds

office

until

his

or

her

successor

is

duly

elected

and

qualifies

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

charter

or

statute,

or

until

December

31

of

the

year

in

which

he

or

she

turns

75.

Trustees

who

are

“interested

persons,”

as

defined

in

the

Investment

Company

Act

serve

until

their

successor

is

duly

elected

and

qualifies

or

until

their

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

statute,

or

until

December

31

of

the

year

in

which

they

turn

72.

The

Board

may

determine

to

extend

the

terms

of

Independent

Trustees

on

a

case-by-case

basis,

as

appropriate.

(c)

Following

the

combination

of

Merrill

Lynch

Investment

Managers,

L.P.

(“MLIM”)

and

BlackRock,

Inc.

in

September

2006,

the

various

legacy

MLIM

and

legacy

BlackRock

fund

boards

were

realigned

and

consolidated

into

three

new

fund

boards

in

2007.

Certain

Independent

Trustees

first

became

members

of

the

boards

of

other

legacy

MLIM

or

legacy

BlackRock

funds

as

follows:

Frank

J.

Fabozzi,

1988;

R.

Glenn

Hubbard,

2004;

and

W.

Carl

Kester,

1995.

Certain

other

Independent

Trustees

became

members

of

the

boards

of

the

closed-end

funds

in

the

Fixed-Income

Complex

as

follows:

Cynthia

L.

Egan,

2016;

and

Catherine

A.

Lynch,

2016.

(d)

Dr.

Fabozzi,

Dr.

Kester,

Ms.

Lynch

and

Mr.

Perlowski

are

also

trustees

of

the

BlackRock

Credit

Strategies

Fund

and

BlackRock

Private

Investments

Fund.

(e)

Mr.

Fairbairn

and

Mr.

Perlowski

are

both

“interested

persons,”

as

defined

in

the

1940

Act,

of

the

Trust

based

on

their

positions

with

BlackRock,

Inc.

and

its

affiliates.

Mr.

Fairbairn

and

Mr.

Perlowski

are

also

board

members

of

the

BlackRock

Multi-Asset

Complex.

Robert

Fairbairn

1965

Trustee

(Since

2015)

Vice

Chairman

of

BlackRock,

Inc.

since

2019;

Member

of

BlackRock's

Global

Executive

and

Global

Operating

Committees;

Co-Chair

of

BlackRock's

Human

Capital

Committee;

Senior

Managing

Director

of

BlackRock,

Inc.

from

2010

to

2019;

oversaw

BlackRock's

Strategic

Partner

Program

and

Strategic

Product

Management

Group

from

2012

to

2019;

Member

of

the

Board

of

Managers

of

BlackRock

Investments,

LLC

from

2011

to

2018;

Global

Head

of

BlackRock's

Retail

and

iShares

®

businesses

from

2012

to

2016.

97

RICs

consisting

of

264

Portfolios

None

John

M.

Perlowski

(d)

1964

Trustee

(Since

2015);

President

and

Chief

Executive

Officer

(Since

2010)

Managing

Director

of

BlackRock,

Inc.

since

2009;

Head

of

BlackRock

Global

Accounting

and

Product

Services

since

2009;

Advisory

Director

of

Family

Resource

Network

(charitable

foundation)

since

2009.

99

RICs

consisting

of

266

Portfolios

None

Trustee

and

Officer

Information

(continued)

159

Trustee

and

Officer

Information

Officers

Who

Are

Not

Trustees

(a)

(a)

The

address

of

each

Officer

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Officers

of

the

Trust

serve

at

the

pleasure

of

the

Board.

Further

information

about

the

Trust’s

Trustees

and

Officers

is

available

in

the

Trust’s

Statement

of

Additional

Information,

which

can

be

obtained

without

charge

by

calling

(800)

441-7762.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

Principal

Occupation(s)

During

Past

Five

Years

Jennifer

McGovern

1977

Vice

President

(Since

2014)

Managing

Director

of

BlackRock,

Inc.

since

2016;

Director

of

BlackRock,

Inc.

from

2011

to

2015;

Head

of

Americas

Product

Development

and

Governance

for

BlackRock’s

Global

Product

Group

since

2019;

Head

of

Product

Structure

and

Oversight

for

BlackRock's

U.S.

Wealth

Advisory

Group

from

2013

to

2019.

Trent

Walker

1974

Chief

Financial

Officer

(Since

2021)

Managing

Director

of

BlackRock,

Inc.

since

September

2019;

Executive

Vice

President

of

PIMCO

from

2016

to

2019;

Senior

Vice

President

of

PIMCO

from

2008

to

2015;

Treasurer

from

2013

to

2019

and

Assistant

Treasurer

from

2007

to

2017

of

PIMCO

Funds,

PIMCO

Variable

Insurance

Trust,

PIMCO

ETF

Trust,

PIMCO

Equity

Series,

PIMCO

Equity

Series

VIT,

PIMCO

Managed

Accounts

Trust,

2

PIMCO-sponsored

interval

funds

and

21

PIMCO-sponsored

closed-end

funds.

Jay

M.

Fife

1970

Treasurer

(Since

2007)

Managing

Director

of

BlackRock,

Inc.

since

2007.

Charles

Park

1967

Chief

Compliance

Officer

(Since

2014)

Anti-Money

Laundering

Compliance

Officer

for

certain

BlackRock-advised

Funds

from

2014

to

2015;

Chief

Compliance

Officer

of

BlackRock

Advisors,

LLC

and

the

BlackRock-advised

Funds

in

the

BlackRock

Multi-Asset

Complex

and

the

BlackRock

Fixed-Income

Complex

since

2014;

Principal

of

and

Chief

Compliance

Officer

for

iShares

®

Delaware

Trust

Sponsor

LLC

since

2012

and

BlackRock

Fund

Advisors

(“BFA”)

since

2006;

Chief

Compliance

Officer

for

the

BFA-advised

iShares

®

exchange

traded

funds

since

2006;

Chief

Compliance

Officer

for

BlackRock

Asset

Management

International

Inc.

since

2012.

Lisa

Belle

1968

Anti-Money

Laundering

Compliance

Officer

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2019;

Global

Financial

Crime

Head

for

Asset

and

Wealth

Management

of

JP

Morgan

from

2013

to

2019;

Managing

Director

of

RBS

Securities

from

2012

to

2013;

Head

of

Financial

Crimes

for

Barclays

Wealth

Americas

from

2010

to

2012.

Janey

Ahn

1975

Secretary

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Director

of

BlackRock,

Inc.

from

2009

to

2017.

Effective

May

31,

2022,

Karen

P.

Robards

retired

as

a

Trustee

of

the

Trust.

Effective

December

31,

2021,

Richard

E.

Cavanagh

and

Michael

J.

Castellano

retired

as

Trustees

of

the

Trust.

Additional

Information

2022

BlackRock

Annual

Report

to

Shareholders

160

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Funds

may

be

found

on

BlackRock’s

website,

which

can

be

accessed

at

blackrock.com

.

Any

reference

to

BlackRock’s

website

in

this

report

is

intended

to

allow

investors

public

access

to

information

regarding

the

Funds

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

Householding

The

Funds

will

mail

only

one

copy

of

shareholder

documents,

including

prospectuses,

annual

and

semi-annual

reports,

Rule

30e-3

notices

and

proxy

statements,

to

shareholders

with

multiple

accounts

at

the

same

address.

This

practice

is

commonly

called

“householding”

and

is

intended

to

reduce

expenses

and

eliminate

duplicate

mailings

of

shareholder

documents.

Mailings

of

your

shareholder

documents

may

be

householded

indefinitely

unless

you

instruct

us

otherwise.

If

you

do

not

want

the

mailing

of

these

documents

to

be

combined

with

those

for

other

members

of

your

household,

please

call

the

Funds at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments

The

Funds

file

their

complete

schedules

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to their

reports

on

Form

N-PORT.

The

Funds’

Forms

N-PORT are

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

each

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/fundreports

.

Availability

of

Proxy

Voting

Policies,

Procedures

and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Funds

use

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

information

about

how

the

Funds

voted

proxies

relating

to

securities

held

in

the

Funds'

portfolios

during

the

most

recent

12-month

period

ended

June

30 is

available

without

charge,

upon

request (1)

by

calling

(800)

441-

7762

;

(2)

on

the

BlackRock

website

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800)

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

Additional

Information

(continued)

161

Additional

Information

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Advisers

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

BlackRock

(Singapore)

Limited

(a)

079912

Singapore

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

(a)

For

BlackRock

Core

Bond

Portfolio

and

BlackRock

Low

Duration

Bond

Portfolio.

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10022

Legal

Counsel

Willkie

Farr

&

Gallagher

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

Glossary

of

Terms

Used

in

this

Report

2022

BlackRock

Annual

Report

to

Shareholders

162

Currency

Abbreviation

AUD

Australian

Dollar

BRL

Brazilian

Real

CAD

Canadian

Dollar

CLP

Chilean

Peso

COP

Colombian

Peso

EUR

Euro

GBP

British

Pound

IDR

Indonesian

Rupiah

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

PLN

Polish

Zloty

RUB

New

Russian

Ruble

THB

Thai

Baht

TRY

Turkish

Lira

USD

United

States

Dollar

ZAR

South

African

Rand

Portfolio

Abbreviation

BZDIOVER

Overnight

Brazil

CETIP

—

Interbank

Rate

CDI

Crest

Depository

Interests

CLO

Collateralized

Loan

Obligation

CSMC

Credit

Suisse

Mortgage

Capital

DAC

Designated

Activity

Company

ETF

Exchange-Traded

Fund

EURIBOR

Euro

Interbank

Offered

Rate

GO

General

Obligation

Bonds

LIBOR

London

Interbank

Offered

Rate

LIQ

Liquidity

Agreement

MSCI

Morgan

Stanley

Capital

International

MXIBTIIE

Mexico

Interbank

TIIE

28-Day

OTC

Over-the-counter

PCL

Public

Company

Limited

PIK

Payment-In-Kind

RB

Revenue

Bonds

REIT

Real

Estate

Investment

Trust

S&P

Standard

&

Poor's

SCA

Svenska

Cellulosa

Aktiebolaget

SOFR

Secured

Overnight

Financing

Rate

TBA

To-be-announced

TONAR

Tokyo

Overnight

Average

Rate

WIBOR

Warsaw

Interbank

Offered

Rate

Want

to

know

more?

blackrock.com

|

800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

Funds

unless

preceded

or

accompanied

by

the

Funds’

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Statements

and

other

information

herein

are

as

dated

and

are

subject

to

change.

Taxable3-9/22-AR

September

30,

2022

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2022

Annual

Report

BlackRock

Funds

V

BlackRock

GNMA

Portfolio

BlackRock

Impact

Mortgage

Fund

BlackRock

Income

Fund

Dear

Shareholder,

The

12-month

reporting

period

as

of

September

30,

2022

saw

the

emergence

of

significant

challenges

that

disrupted

the

economic

recovery

and

strong

financial

markets

of

2021.

The

U.S.

economy

shrank

in

the

first

half

of

2022,

ending

the

run

of

robust

growth

that

followed

the

reopening

of

global

economies

and

the

development

of

COVID-19

vaccines.

Changes

in

consumer

spending

patterns

and

a

tight

labor

market

led

to

elevated

inflation,

which

reached

a

40-year

high.

Moreover,

while

the

foremost

effect

of

Russia’s

invasion

of

Ukraine

has

been

a

severe

humanitarian

crisis,

the

ongoing

war

continued

to

present

challenges

for

both

investors

and

policymakers.

Equity

prices

fell

as

interest

rates

rose,

particularly

weighing

on

relatively

high-valuation

growth

stocks

and

economically

sensitive

small-capitalization

stocks.

While

both

large-

and

small-capitalization

U.S.

stocks

fell,

declines

for

small-capitalization

U.S.

stocks

were

steeper.

Both

emerging

market

stocks

and

international

equities

from

developed

markets

fell

significantly,

pressured

by

rising

interest

rates

and

a

strengthening

U.S.

dollar.

The

10-year

U.S.

Treasury

yield

(which

is

inversely

related

to

bond

prices)

rose

notably

during

the

reporting

period

as

investors

reacted

to

higher

inflation

and

attempted

to

anticipate

its

impact

on

future

interest

rate

changes.

The

corporate

bond

market

also

faced

inflationary

headwinds,

and

increasing

uncertainty

led

to

higher

corporate

bond

spreads

(the

difference

in

yield

between

U.S.

Treasuries

and

similarly-dated

corporate

bonds).

The

U.S.

Federal

Reserve

(the

“Fed”),

acknowledging

that

inflation

is

proving

more

persistent

than

expected,

raised

interest

rates

five

times

while

indicating

that

additional

rate

hikes

were

likely.

Furthermore,

the

Fed

wound

down

its

bond-buying

programs

and

is

accelerating

the

reduction

of

its

balance

sheet.

As

investors

attempted

to

assess

the

Fed’s

future

trajectory,

the

Fed’s

statements

late

in

the

reporting

period

led

markets

to

believe

that

additional

tightening

is

likely

in

the

near

term.

The

pandemic’s

restructuring

of

the

economy

brought

an

ongoing

mismatch

between

supply

and

demand,

contributing

to

the

current

inflationary

regime.

While

growth

has

slowed

in

2022,

we

believe

that

taming

inflation

requires

a

more

dramatic

economic

decline

to

bring

demand

back

to

a

lower

level

that

is

more

in

line

with

the

economy’s

capacity.

The

Fed

has

been

raising

interest

rates

at

the

fastest

pace

in

decades,

and

seems

set

to

overtighten

in

its

effort

to

get

inflation

back

to

target.

With

this

in

mind,

we

believe

the

possibility

of

a

U.S.

recession

in

the

near-term

is

high,

and

the

outlook

for

Europe

and

the

U.K.

is

also

troubling.

Investors

should

expect

a

period

of

higher

volatility

as

markets

adjust

to

the

new

economic

reality

and

policymakers

attempt

to

adapt

to

rapidly

changing

conditions.

In

this

environment,

while

we

favor

an

overweight

to

equities

in

the

long-term,

the

market’s

concerns

over

excessive

rate

hikes

from

central

banks

moderate

our

outlook.

Rising

input

costs

and

a

deteriorating

economic

backdrop

in

China

and

Europe

are

likely

to

challenge

corporate

earnings,

so

we

are

underweight

equities

overall

in

the

near

term.

However,

we

see

better

opportunities

in

credit,

where

higher

spreads

provide

income

opportunities

and

partially

compensate

for

inflation

risk.

We

believe

that

investment-grade

corporates,

local-

currency

emerging

market

debt,

and

inflation-protected

bonds

(particularly

in

Europe)

offer

strong

opportunities

for

a

six-

to

twelve-month

horizon.

Overall,

our

view

is

that

investors

need

to

think

globally,

position

themselves

to

be

prepared

for

a

decarbonizing

economy,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackroc

k.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

September

30,

2022

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

(20.20

)%

(15.47

)%

U.S.

small

cap

equities

(Russell

2000

®

Index)

(19.01

)

(23.50

)

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

(22.51

)

(25.13

)

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

(21.70

)

(28.11

)

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

0.58

0.63

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

(10.81

)

(16.20

)

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

(9.22

)

(14.60

)

Tax-exempt

municipal

bonds

(Bloomberg

Municipal

Bond

Index)

(6.30

)

(11.50

)

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

(10.42

)

(14.15

)

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

...................................................................................................

2

Annual

Report:

Fund

Summaries

.......................................................................................................

4

The

Benefits

and

Risks

of

Leveraging

..........................................................................................

15

About

Fund

Performance

.................................................................................................

16

Disclosure

of

Expenses

...................................................................................................

17

Derivative

Financial

Instruments

.............................................................................................

17

Financial

Statements:

Schedules

of

Investments

...............................................................................................

18

Statements

of

Assets

and

Liabilities

.........................................................................................

74

Statements

of

Operations

................................................................................................

77

Statements

of

Changes

in

Net

Assets

........................................................................................

78

Financial

Highlights

.....................................................................................................

80

Notes

to

Financial

Statements

...............................................................................................

93

Report

of

Independent

Registered

Public

Accounting

Firm

..............................................................................

109

Important

Tax

Information

.................................................................................................

110

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

..................................................................

111

Trustee

and

Officer

Information

..............................................................................................

115

Additional

Information

....................................................................................................

118

Glossary

of

Terms

Used

in

this

Report

..........................................................................................

120

Fund

Summary

as

of

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

4

BlackRock

GNMA

Portfolio

Investment

Objective

BlackRock

GNMA

Portfolio’s

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

total

return,

consistent

with

income

generation

and

prudent

investment

management.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

the

Fund

underperformed

its

benchmark,

the

Bloomberg

Fixed-Income

GNMA

MBS

Index.

What

factors

influenced

performance?

The

Fund's

active

strategy

which

seeks

to

optimize

the

blend

of

to-be-announced

(“TBA”)

and

specified

mortgage

pools

versus

the

benchmark

index

weighed

on

performance

over

the

period,

particularly

in

the

first

and

second

quarters

of

2022.

In

addition,

out-of-benchmark

exposure

to

agency

commercial

mortgage-backed

securities

(“CMBS”)

detracted

modestly

from

performance.

Positive

contributions

to

performance

were

led

by

tactical

positioning

with

respect

to

duration

and

corresponding

interest

rate

sensitivity

over

the

period.

Allocations

to

fixed

rate

collateralized

mortgage

obligations

(“CMOs”)

also

proved

additive.

Describe

recent

portfolio

activity.

Within

the

GNMA

coupon

stack,

the

Fund

shifted

to

an

up-in-coupon

tilt

on

the

view

that

lower

coupons

remain

vulnerable

to

slowing

prepayment

speeds

and

duration

extension.

Additionally,

the

Fund

favored

GNMAs

relative

to

conventional

mortgage-backed

securities

(“MBS”)

in

middle

coupons

given

attractive

valuations,

a

more

supportive

demand

backdrop,

and

a

more

favorable

prepayment

outlook.

The

Fund

continued

to

hold

an

allocation

to

agency

CMOs

with

seasoned

collateral.

The

Fund’s

cash

position

was

somewhat

elevated

at

times

during

the

period

and

was

6.1%

at

period

end.

The

Fund’s

cash

position

did

not

have

a

material

impact

on

performance.

The

Fund

holds

a

small

percentage

of

assets

in

derivatives

as

a

hedge

to

allocations

in

MBS

and

securitized

assets.

The

use

of

derivatives

marginally

contributed

to

performance.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

positioned

overweight

MBS

vs.

the

benchmark

as

valuations

have

reached

historical

attractive

levels.

This

constructive

view

on

the

asset

class

is

balanced

against

our

cautious

near

term

view,

as

the

recent

volatility

in

macro

factors

is

unlikely

to

abate

in

the

period

ahead.

The

Fund's

overweight

was

expressed

via

higher

coupon

specified

pool

MBS,

rather

TBA,

and

the

Fund

continued

to

hold

allocations

to

agency

CMOs

backed

by

seasoned

collateral.

Finally,

the

Fund

was

overweight

duration

relative

to

the

benchmark

while

being

neutrally

positioned

along

the

yield

curve.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

5

Fund

Summary

BlackRock

GNMA

Portfolio

GROWTH

OF

$10,000

INVESTMENT

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

Assuming

maximum

sales

charges,

if

any,

transaction

costs

and

other

operating

expenses,

including

investment

advisory

fees

and

administration

fees,

if

any.

Institutional

Shares

do

not

have

a

sales

charge.

(b)

Under

normal

circumstances,

the

Fund

invests

at

least

80%

of

its

assets

in

Government

National

Mortgage

Association

("GNMA")

securities.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

GNMA

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)

Bloomberg

Fixed-Income

GNMA

MBS

Index

-

an

unmanaged

index

comprised

of

mortgage-backed

pass

through

securities

of

GNMA.

Average

Annual

Total

Returns

(a)(b)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

..........................

2.97‌%

2.76‌%

(14.75‌)%

N/A‌

(1.15‌)%

N/A‌

0.18‌%

N/A‌

Investor

A

...........................

2.60‌

2.39‌

(14.89‌)

(18.29‌)%

(1.38‌)

(2.18‌)%

(0.10‌)

(0.51‌)%

Investor

C

...........................

1.95‌

1.78‌

(15.60‌)

(16.43‌)

(2.11‌)

(2.11‌)

(0.69‌)

(0.69‌)

Class

K

............................

3.02‌

2.87‌

(14.65‌)

N/A‌

(1.07‌)

N/A‌

0.23‌

N/A‌

Bloomberg

Fixed-Income

GNMA

MBS

Index

..

—‌

—‌

(12.99‌)

N/A‌

(0.91‌)

N/A‌

0.35‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees.

(b)

Under

normal

circumstances,

the

Fund

invests

at

least

80%

of

its

assets

in

GNMA

securities.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

the

Predecessor

Fund,

a

series

of

BlackRock

Funds

II,

through

the

Reorganization.

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

6

BlackRock

GNMA

Portfolio

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

Hypothetical

5%

Return

Expenses

Paid

During

the

Period

Including

Interest

Expense

Excluding

Interest

Expense

Annualized

Expense

Ratio

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Including

Interest

Expense

(a)

Excluding

Interest

Expense

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Including

Interest

Expense

Excluding

Interest

Expense

Institutional

......

$

1,000.00‌

$

903.70‌

$

3.53‌

$

2.

1

0‌

$

1,000.00‌

$

1,021.36‌

$

3.75‌

$

1,022.

8

6‌

$

2.

2

3‌

0.74‌%

0.4

4‌

%

Investor

A

.......

1,000.00‌

903.00‌

4.63‌

3.20‌

1,000.00‌

1,020.21‌

4.91‌

1,021.71‌

3.40‌

0.97‌

0.67‌

Investor

C

.......

1,000.00‌

899.10‌

8.24‌

6.

81‌

1,000.00‌

1,016.39‌

8.74‌

1,017.9

0‌

7.

23‌

1.73‌

1.4

3‌

Class

K

........

1,000.00‌

904.70‌

2.86‌

1.

43‌

1,000.00‌

1,022.06‌

3.04‌

1,023.

56‌

1.

52‌

0.60‌

0.3

0‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Government

Sponsored

Agency

Securities

..............

99.8‌

%

Non-Agency

Mortgage-Backed

Securities

..................

0.2‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(b

)

Percent

of

Total

Investments

(a)

AAA/

Aaa

(c

)

......................................

100.0‌

%

(a)

Excludes

short-term

securities,

options

written

and

TBA

sale

commitments.

(b)

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.

(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.

Fund

Summary

as

of

September

30,

2022

7

Fund

Summary

BlackRock

Impact

Mortgage

Fund

Investment

Objective

BlackRock

Impact

Mortgage

Fund’s

(formerly

known

as

BlackRock

U.S.

Government

Bond

Portfolio)

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

total

return,

consistent

with

income

generation

and

prudent

investment

management,

while

investing

in

a

portfolio

of

fixed-income

securities

that

Fund

management

views

as

generating

positive

social

and/or

environmental

impacts.

On

May

20,

2022,

the

Board

of

Trustees

of

the

BlackRock

Funds

V

approved

a

change

in

the

Fund's

name

from

BlackRock

U.S.

Government

Bond

Portfolio

to

BlackRock

Impact

Mortgage

Fund

and

certain

changes

to

the

Fund’s

investment

objective

and

investment

strategies.

In

addition,

the

investment

adviser

has

changed

the

benchmark

indexes

against

which

the

Fund

compares

its

performance.

These

changes

became

effective

on

September

1,

2022.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

the

Fund

underperformed

its

benchmark

the

Bloomberg

U.S.

Mortgage

Backed

Securities

Index

(the

“Bloomberg

U.S.

MBS

Index”)

as

well

as

it’s

former

benchmark,

the

Bloomberg

U.S.

Government/Mortgage

Index.

What

factors

influenced

performance?

Detractors

from

the

Fund’s

relative

performance

included

interest

rate

volatility

strategies.

The

Fund’s

relative

allocation

to

agency

mortgage-backed

securities

(“MBS”)

also

detracted.

Finally,

out-of-benchmark

exposure

to

agency

commercial

mortgage-backed

securities

(“CMBS”),

specifically

single-asset/single-borrower

("SASB")

and

interest-

only

issues,

weighed

on

relative

return.

Positive

contributions

to

relative

performance

were

led

by

security

selection

and

relative

value

strategies

within

the

agency

MBS

market.

The

Fund’s

stance

with

respect

to

duration

(and

corresponding

interest

rate

sensitivity)

and

positioning

along

the

yield

curve

also

proved

additive.

Describe

recent

portfolio

activity.

Within

agency

MBS,

the

Fund

shifted

to

an

up-in-coupon

tilt

on

the

view

that

lower

coupons

remain

vulnerable

to

slowing

prepayment

speeds

and

duration

extension.

Additionally,

the

Fund

favored

GNMAs

relative

to

conventional

MBS

in

middle

coupons

given

attractive

valuations,

a

more

supportive

demand

backdrop,

and

a

more

favorable

prepayment

outlook.

Describe

portfolio

positioning

at

period

end.

The

Fund

closed

the

period

underweight

30-year

conventional

MBS

in

favor

of

30-year

GNMAs.

Within

the

coupon

stack,

the

Fund

was

positioned

defensively

with

respect

to

lower

coupons

in

favor

of

higher

coupons.

The

Fund

was

constructively

positioned

with

respect

to

agency

MBS

given

historically

wide

spreads

relative

to

other

high-quality

sectors,

while

remaining

cautious

with

respect

to

the

potential

for

continued

market

volatility

in

response

to

shifting

monetary

and

fiscal

policies.

The

Fund

closed

the

period

modestly

overweight

duration.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

8

BlackRock

Impact

Mortgage

Fund

GROWTH

OF

$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)

Under

normal

circumstances,

the

Fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

mortgage-backed

and

other

mortgage-related

securities

that

are

issued

or

guaranteed

by

the

U.S.

Government

and

its

agencies.

The

Fund

invests

primarily

in

the

highest

rated

government

and

agency

bonds

and

maintains

an

average

portfolio

duration

that

is

within

±1

year

of

the

duration

of

the

Bloomberg

U.S.

MBS

Index.

The

Fund's

total

returns

prior

to

September

1,

2022

are

the

returns

of

the

Fund

when

it

followed

a

different

investment

objective

and

different

investment

strategies

and

process

under

the

name

"BlackRock

U.S.

Government

Bond

Portfolio."

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

U.S.

Government

Bond

Portfolio

(the

“Predecessor

Fund”),

a

series

of

BlackRock

Funds

II,

through

a

tax-free

reorganization

(the

“Reorganization”).

The

Predecessor

Fund

was

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

Bloomberg

U.S.

Government/Mortgage

Index,

that

measures

debt

issued

by

the

U.S.

Government,

and

its

agencies,

as

well

as

mortgage-backed

pass-through

securities

of

Ginnie

Mae,

Fannie

Mae

and

Freddie

Mac.

(d)

Bloomberg

U.S.

MBS

Index,

an

unmanaged

index

that

tracks

fixed-rate

agency

mortgage

backed

pass-through

securities

guaranteed

by

Ginnie

Mae,

Fannie

Mae

and

Freddie

Mac.

Effective

September

1,

2022,

the

Fund

has

changed

the

benchmark

against

which

it

measures

its

performance

from

the

Bloomberg

U.S.

Government/Mortgage

Index

to

the

Bloomberg

U.S.

MBS

Index.

Fund

management

believes

the

Bloomberg

U.S.

MBS

Index

more

accurately

reflects

the

investment

strategy

of

the

Fund.

Fund

Summary

as

of

September

30,

2022

(continued)

9

Fund

Summary

BlackRock

Impact

Mortgage

Fund

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Average

Annual

Total

Returns

(a)(b)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

..........................

3.47‌%

3.21‌%

(14.77‌)%

N/A‌

(0.77‌)%

N/A‌

0.34‌%

N/A‌

Investor

A

...........................

3.09‌

2.82‌

(14.95‌)

(18.35‌)%

(1.01‌)

(1.81‌)%

0.08‌

(0.33‌)%

Investor

C

...........................

2.45‌

2.24‌

(15.53‌)

(16.36‌)

(1.75‌)

(1.75‌)

(0.55‌)

(0.55‌)

Class

K

............................

3.52‌

3.37‌

(14.73‌)

N/A‌

(0.72‌)

N/A‌

0.37‌

N/A‌

Class

R

............................

2.96‌

2.63‌

(15.16‌)

N/A‌

(1.25‌)

N/A‌

(0.19‌)

N/A‌

Bloomberg

U.S.

Government/Mortgage

Index

.

—‌

—‌

(13.28‌)

N/A‌

(0.47‌)

N/A‌

0.53‌

N/A‌

Bloomberg

U.S.

MBS

Index

(c)

.............

—‌

—‌

(13.98‌)

N/A‌

(0.92‌)

N/A‌

0.51‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees,

and

how

performance

was

calculated

for

certain

share

classes.

(b)

Under

normal

circumstances,

the

Fund

invests

at

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

mortgage-backed

and

other

mortgage-related

securities

that

are

issued

or

guaranteed

by

the

U.S.

Government

and

its

agencies.

The

Fund

invests

primarily

in

the

highest

rated

government

and

agency

bonds

and

maintains

an

average

portfolio

duration

that

is

within

±1

year

of

the

duration

of

the

Bloomberg

U.S.

MBS

Index

.

The

Fund's

total

returns

prior

to

September

1,

2022

are

the

returns

of

the

Fund

when

it

followed

a

different

investment

objective

and

different

investment

strategies

and

process

under

the

name

“BlackRock

U.S.

Government

Bond

Portfolio”.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

the

Predecessor

Fund,

a

series

of

BlackRock

Funds

II,

through

the

Reorganization.

The

Predecessor

Fund

was

the

performance

and

accounting

survivor

of

the

Reorganization.

(c)

Effective

September

1,

2022,

the

Fund

has

changed

the

benchmark

against

which

it

measures

its

performance

from

the

Bloomberg

U.S.

Government/Mortgage

Index

to

the

Bloomberg

U.S.

MBS

Index.

Fund

management

believes

the

Bloomberg

U.S.

MBS

Index

more

accurately

reflects

the

investment

strategy

of

the

Fund.

Actual

Hypothetical

5%

Return

Expenses

Paid

During

the

Period

Including

Interest

Expense

Excluding

Interest

Expense

Annualized

Expense

Ratio

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Including

Interest

Expense

(a)

Excluding

Interest

Expense

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Including

Interest

Expense

Excluding

Interest

Expense

Institutional

......

$

1,000.00‌

$

902.20‌

$

3.72‌

$

2.15‌

$

1,000.00‌

$

1,021.16‌

$

3.95‌

$

1,022.81‌

$

2.28‌

0.78‌%

0.45‌%

Investor

A

.......

1,000.00‌

901.20‌

4.91‌

3.34‌

1,000.00‌

1,019.90‌

5.22‌

1,021.56‌

3.55‌

1.03‌

0.70‌

Investor

C

.......

1,000.00‌

897.70‌

8.56‌

6.9

9‌

1,000.00‌

1,016.04‌

9.10‌

1,017.

7

0‌

7.

44‌

1.80‌

1.4

7‌

Class

K

........

1,000.00‌

902.40‌

3.29‌

1.

72‌

1,000.00‌

1,021.61‌

3.50‌

1,023.

2

6‌

1

.

8

3‌

0.69‌

0.

36‌

Class

R

........

1,000.00‌

900.10‌

6.10‌

4.53‌

1,000.00‌

1,018.65‌

6.48‌

1,020.31‌

4.81‌

1.28‌

0.95‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

10

BlackRock

Impact

Mortgage

Fund

Portfolio

Information

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Government

Sponsored

Agency

Securities

..............

97.3‌

%

Non-Agency

Mortgage-Backed

Securities

..................

2.7‌

Asset-Backed

Securities

..............................

0.0‌

(b)

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/

Aaa

(d)

......................................

98.5‌

%

AA/Aa

.........................................

0.5‌

A

............................................

0.1‌

BBB/Baa

.......................................

0.0‌

(b)

NR

...........................................

0.9‌

(a)

Excludes

short-term

securities,

options

purchased,

options

written

and

TBA

sale

commitments.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

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.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

Fund

Summary

as

of

September

30,

2022

11

Fund

Summary

BlackRock

Income

Fund

Investment

Objective

BlackRock

Income

Fund’s

(the

“Fund”)

investment

objective

is

to

seek

to

provide

high

current

income,

with

a

secondary

objective

of

long-term

capital

appreciation.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

the

Fund

underperformed

its

Customized

Reference

Benchmark.

The

Customized

Reference

Benchmark

is

comprised

of

the

returns

of

the

Bloomberg

Global

High

Yield

100%

Hedged

USD

Index

(25%),

Morningstar

LSTA

Leveraged

Loan

Index

(25%),

Bloomberg

U.S.

CMBS

Investment

Grade

Index

(25%),

and

JPMorgan

Corporate

Emerging

Markets

Bond

Index

Broad

Diversified

(CEMBI

Broad

Diversified)

(25%).

The

Fund

is

not

managed

with

reference

to

the

current

performance

benchmark

and

its

exposures

may

deviate

meaningfully

from

the

current

performance

benchmark.

What

factors

influenced

performance?

High

inflation

and

heightened

geopolitical

tensions

have

contributed

to

macro

volatility,

which

has

led

to

negative

price

movement

across

the

Fund’s

investment

universe.

Detractors

over

the

period

most

notably

included

exposure

to

global

high

yield

corporate

bonds

across

Asia,

the

United

States

and

Europe.

Exposure

to

global

investment

grade

corporate

bonds

across

the

United

States

and

Europe,

preferred

securities,

emerging

markets,

floating

rate

loan

interest

and

collateralized

loan

obligations

(“CLOs”)

also

detracted

from

performance.

Finally,

positioning

with

respect

to

interest

rates

weighed

on

return

as

hawkish

central

bank

messaging

and

actions

pushed

rates

higher.

Positive

contributors

to

performance

were

limited

for

the

period

given

heightened

volatility

and

high

correlations

between

asset

classes,

although

the

use

of

foreign

currency

hedges

proved

additive.

The

Fund’s

cash

position

averaged

5.7%

of

portfolio

assets

over

the

period

and

was

0.5%

at

period

end.

The

Fund

remains

selective

as

the

team

seeks

the

best

opportunities

to

generate

income.

The

Fund’s

cash

position

did

not

have

a

material

impact

on

performance.

Describe

recent

portfolio

activity.

The

12-month

period

saw

significant

market

volatility.

Inflation

started

to

increase

and

remained

elevated,

leading

to

more

hawkish

central

bank

positioning.

In

addition,

the

late-February

2022

invasion

of

Ukraine

by

Russia

and

escalation

of

the

conflict

led

to

increased

geopolitical

risks.

As

inflation

remained

elevated

and

interest

rates

began

to

rise,

the

Fund

increased

its

exposure

to

floating

rate

instruments,

namely

floating

rate

loan

interest

and

CLOs.

As

markets

began

to

largely

price

in

central

bank

rate

increases,

the

Fund

reduced

the

allocation

to

floating

rate

instruments

and

increased

exposure

to

U.S.

investment

grade

corporate

bonds.

As

valuations

started

to

approach

attractive

levels

following

significant

repricing

in

2022,

the

Fund

also

increased

its

allocation

to

U.S.

high

yield

corporate

bonds,

while

reducing

the

European

high

yield

corporate

allocation

given

the

region’s

greater

exposure

to

repercussions

from

the

Russia-Ukraine

conflict.

Lastly,

as

the

near-term

global

growth

outlook

grew

more

challenged,

the

Fund

meaningfully

increased

its

exposure

to

U.S.

Treasuries.

Describe

portfolio

positioning

at

period

end.

The

Fund

was

positioned

relatively

defensively

at

period-end,

with

significant

allocations

to

U.S.

Treasuries

and

U.S.

investment

grade

corporate

bonds

given

the

challenging

global

growth

and

financial

market

backdrop.

While

the

Fund

had

reduced

its

allocations

to

floating

rate

loan

interest

and

CLOs

from

earlier

in

the

period,

it

maintained

exposure

to

these

sectors

given

the

potential

for

attractive

carry

(incremental

income)

and

ability

to

act

as

a

buffer

against

further

interest

rate

increases.

In

regional

terms,

the

Fund

had

a

preference

for

the

United

States

over

Europe

given

heightened

geopolitical

risks

in

the

region

stemming

from

the

Russia-Ukraine

conflict.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

12

BlackRock

Income

Fund

GROWTH

OF

$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)

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

(plus

the

amount

of

any

borrowing

for

investment

purposes)

in

fixed-income

securities.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

BlackRock

Credit

Strategies

Income

Fund

(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

between

July

2,

2012

and

July

1,

2016

are

the

returns

of

the

Predecessor

Fund

when

it

followed

different

investment

objectives

and

different

investment

strategies

under

the

name

BlackRock

Secured

Credit

Portfolio.

(c)

Morningstar

LSTA

Leveraged

Loan

Index

(formerly

S&P/LSTA

Leveraged

Loan

Index)

an

unmanaged

market

value-weighted

index

designed

to

measure

the

performance

of

the

U.S.

leveraged

loan

market

based

upon

spreads,

interest

payments

and

market

weightings

subject

to

a

single

loan

facility

weight

cap

of

2%.

(d)

A

“hedged”

version

of

the

Bloomberg

Global

High

Yield

Index

which

is

a

multi-currency

flagship

measure

of

the

global

high

yield

debt

market.

The

index

represents

the

union

of

the

U.S.

High

Yield,

the

Pan-European

High

Yield,

and

Emerging

Markets

Hard

Currency

High

Yield

Indices.

The

high

yield

and

emerging

markets

sub-components

are

mutually

exclusive.

(e)

An

index

that

measures

the

market

of

US

Agency

and

US

Non-Agency

conduit

and

fusion

CMBS

deals

with

a

minimum

current

deal

size

of

$300

million.

The

index

is

divided

into

two

subcomponents:

the

U.S.

Aggregate-eligible

component,

which

contains

bonds

that

are

Employee

Retirement

Income

Security

Act

of

1974,

as

amended

(“ERISA”)

eligible

under

the

underwriter's

exemption,

and

the

non-U.S.

Aggregate-eligible

component,

which

consists

of

bonds

that

are

not

ERISA

eligible.

(f)

An

expansion

of

the

JPMorgan

Corporate

Emerging

Markets

Bond

Index

(CEMBI).

The

CEMBI

is

a

market

capitalization

weighted

index

consisting

of

U.S.

dollar

denominated

emerging

market

corporate

bonds.

(g)

A

customized

performance

benchmark

comprised

of

the

returns

of

the

Bloomberg

Global

High

Yield

100%

Hedged

USD

Index

(25%),

the

Morningstar

LSTA

Leveraged

Loan

Index

(25%),

the

Bloomberg

U.S.

CMBS

Investment

Grade

Index

(25%)

and

the

JPMorgan

Corporate

Emerging

Markets

Bond

Index

Broad

Diversified

(CEMBI

Broad

Diversified)

(25%).

Fund

Summary

as

of

September

30,

2022

(continued)

13

Fund

Summary

BlackRock

Income

Fund

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Average

Annual

Total

Returns

(a)(b)

1

Year

5

Years

10

Years

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

..........................

4.97‌%

4.79‌%

(13.95‌)%

N/A‌

0.85‌%

N/A‌

2.82‌%

N/A‌

Investor

A

...........................

4.60‌

4.52‌

(14.08‌)

(16.23‌)%

0.61‌

0.11‌%

2.57‌

2.31‌%

Investor

C

...........................

3.94‌

3.85‌

(14.81‌)

(15.62‌)

(0.16‌)

(0.16‌)

1.96‌

1.96‌

Class

K

............................

5.03‌

4.97‌

(13.82‌)

N/A‌

0.90‌

N/A‌

2.85‌

N/A‌

Morningstar

LSTA

Leveraged

Loan

Index

....

—‌

—‌

(2.53‌)

N/A‌

2.98‌

N/A‌

3.53‌

N/A‌

Bloomberg

Global

High

Yield

100%

Hedged

USD

Index

........................

—‌

—‌

(16.64‌)

N/A‌

0.13‌

N/A‌

3.53‌

N/A‌

Bloomberg

U.S.

CMBS

Investment

Grade

Index

—‌

—‌

(12.38‌)

N/A‌

0.63‌

N/A‌

1.57‌

N/A‌

JPMorgan

CEMBI

Broad

Diversified

Index

...

—‌

—‌

(16.73‌)

N/A‌

0.29‌

N/A‌

2.63‌

N/A‌

Customized

Reference

Benchmark

........

—‌

—‌

(12.17‌)

N/A‌

1.07‌

N/A‌

2.86‌

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

fees,

and

how

performance

was

calculated

for

certain

share

classes.

(b)

Under

normal

market

conditions,

the

Fund

invests

at

least

80%

of

its

net

assets

(plus

the

amount

of

any

borrowing

for

investment

purposes)

in

fixed-income

securities.

On

September

17,

2018,

the

Fund

acquired

all

of

the

assets,

subject

to

the

liabilities,

of

the

Predecessor

Fund,

a

series

of

BlackRock

Funds

II,

through

the

Reorganization.

The

Predecessor

Fund

is

the

performance

and

accounting

survivor

of

the

Reorganization.

The

Predecessor

Fund’s

returns

between

July

2,

2012

and

July

1,

2016

are

the

returns

of

the

Predecessor

Fund

when

it

followed

different

investment

objectives

and

different

investment

strategies

under

the

name

BlackRock

Secured

Credit

Portfolio.

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

...............................

$

1,000.00‌

$

912.50‌

$

2.97‌

$

1,000.00‌

$

1,021.96‌

$

3.14‌

0.62‌%

Investor

A

................................

1,000.00‌

911.30‌

4.17‌

1,000.00‌

1,020.71‌

4.41‌

0.87‌

Investor

C

................................

1,000.00‌

906.90‌

7.74‌

1,000.00‌

1,016.95‌

8.19‌

1.62‌

Class

K

..................................

1,000.00‌

912.70‌

2.73‌

1,000.00‌

1,022.21‌

2.89‌

0.57‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

14

BlackRock

Income

Fund

Portfolio

Information

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

...................................

48.4‌

%

U.S.

Treasury

Obligations

.............................

23.8‌

Floating

Rate

Loan

Interests

...........................

16.3‌

Asset-Backed

Securities

..............................

4.6‌

Investment

Companies

...............................

2.4‌

Preferred

Securities

.................................

1.4‌

Foreign

Agency

Obligations

............................

1.1‌

Non-Agency

Mortgage-Backed

Securities

..................

0.9‌

Foreign

Government

Obligations

........................

0.9‌

Common

Stocks

...................................

0.1‌

U.S.

Government

Sponsored

Agency

Securities

..............

0.1‌

Warrants

........................................

0.0‌

(b)

Other

Interests

....................................

—‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(c)

Percent

of

Total

Investments

(a)

AAA/Aaa

(d)

......................................

24.0‌

%

AA/Aa

.........................................

0.7‌

A

............................................

14.6‌

BBB/Baa

.......................................

18.8‌

BB/Ba

.........................................

15.2‌

B

............................................

18.4‌ 

CCC/Caa

.......................................

4.3‌

CC/Ca

........................................

0.1‌

C

............................................

0.0‌

(b)

NR

...........................................

3.9‌

(a)

Excludes

short-term

securities,

options

purchased

and

options

written.

(b)

Represents

less

than

0.1%

of

the

Fund's

total

investments.

(c)

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.

(d)

The

investment

adviser

evaluates

the

credit

quality

of

unrated

investments

based

upon

certain

factors

including,

but

not

limited

to,

credit

ratings

for

similar

investments

and

financial

analysis

of

sectors,

individual

investments

and/or

issuers.

Using

this

approach,

the

investment

adviser

has

deemed

unrated

U.S.

Government

Sponsored

Agency

Securities

and

U.S.

Treasury

Obligations

to

be

of

similar

credit

quality

as

investments

rated

AAA/Aaa.

The

Benefits

and

Risks

of

Leveraging

15

The

Benefits

and

Risks

of

Leveraging

The

Funds

may

utilize

leverage

to

seek

to

enhance

returns

and

net

asset

value

(“NAV”).

However,

there

is

no

guarantee

that

these

objectives

can

be

achieved

in

all

interest

rate

environments.  

The

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, each

Fund’s

shareholders

benefit

from

the

incremental

net

income.

The

interest

earned

on

securities

purchased

with

the

proceeds

from

leverage

is

distributed

to each

Fund’s

shareholders,

and

the

value

of

these

portfolio

holdings

is

reflected

in each

Fund’s

per

share

NAV.

However,

in

order

to

benefit

shareholders,

the

return

on

assets

purchased

with

leverage

proceeds

must

exceed

the

ongoing

costs

associated

with

the

leverage.

If

interest

and

other

ongoing

costs

of

leverage

exceed

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

Fund

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.

About

Fund

Performance

2022

BlackRock

Annual

Report

to

Shareholders

16

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. Class

K

Shares

performance

shown

prior

to

the

BlackRock

Income Fund’s

("Income

Fund") Class

K

Shares

inception

date

of

August

1,

2016

and

BlackRock

Impact

Mortgage

Fund’s

("Impact

Mortgage")

Class

K

Shares

inception

date

of

January

25,

2018

is

that

of

Institutional

Shares.

The

performance

of

each

Fund’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

would

have

been

higher

than

those

of

the Institutional

Shares

because

Class

K

Shares

have

lower

expenses

than

the

Institutional Shares.

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of 4.00%

for

all

Funds

included

in

this

report,

except

for

Income

Fund

(which

is

subject

to

an

initial

sales

charge

of

2.50%)

and

a

service

fee

of

0.25%

per

year

(but

no

distribution

fee).

Certain

redemptions

of

these

shares

may

be

subject

to

a

contingent

deferred

sales

charge

(“CDSC”)

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

These

shares

are

generally

available

through

financial

intermediaries.

Investor

C

Shares

 are

subject

to

a 1.00%

CDSC

if

redeemed

within

one

year

of

purchase.

In

addition,

these

shares

are

subject

to

a

distribution

fee

of

0.75%

per

year

and

a

service

fee

of 

0.25%

per

year.

These

shares

are

generally

available

through

financial

intermediaries.

These

shares

automatically

convert

to

Investor

A

Shares

after

approximately eight

years.

Class

R

Shares

(available

only

in

Impact

Mortgage

)

are

not

subject

to

any

sales

charge.

These

shares

are

subject

to

a

distribution

fee

of 

0.25%

per

year

and

a

service

fee

of 

0.25%

per

year.

These

shares

are

available

only

to

certain

employer-sponsored

retirement

plans.

Past

performance

is

not

an

indication

of

future

results.

Financial

markets

have

experienced

extreme

volatility

and

trading

in

many

instruments

has

been

disrupted.

These

circumstances

may

continue

for

an

extended

period

of

time

and

may

continue

to

affect

adversely

the

value

and

liquidity

of each

Fund’s

investments.

As

a

result,

current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Refer

to

blackrock.com 

to

obtain

performance

data

current

to

the

most

recent

month-end.

Performance

results

do

not

reflect

the

deduction

of

taxes

that

a

shareholder

would

pay

on

Fund

distributions

or

the

redemption

of

Fund

shares.

Figures

shown

in

the

performance

table(s) assume

reinvestment

of

all

distributions,

if

any,

at

NAV

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

"Manager”),

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(s)

and/or

reimbursement(s),

each

Fund’s

performance

would

have

been

lower.

With

respect

to

each

Fund’s

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time. With

respect

to

each

Fund’s

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such agreement.

See

the

Notes

to

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

17

Disclosure

of

Expenses

/

Derivative

Financial

Instruments

Shareholders

of

each

Fund

may

incur

the

following

charges:

(a)

transactional

expenses,

such

as

sales

charges;

and

(b)

operating

expenses,

including

investment

advisory

fees,

administration

fees, service

and

distribution

fees,

including

12b-1

fees,

acquired

fund

fees

and

expenses, and

other

fund

expenses.

The

expense

examples shown

(which are

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

through

the

end

of

the

period) 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.

Annualized

expense

ratios

reflect

contractual

and

voluntary

fee

waivers,

if

any.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their

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.

Pursuant

to

Rule

18f-4

under

the

1940

Act,

among

other

things,

the

Funds

must

either

use

derivative

financial

instruments

with

embedded

leverage

in

a

limited

manner

or

comply

with

an

outer

limit

on

fund

leverage

risk

based

on

value-at-risk. 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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

GNMA

Portfolio

18

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

0.3%

Seasoned

Credit

Risk

Transfer

Trust

Series

2018-3,

Class

MA,

3.50%,

08/25/57

(a)

USD

505

$

482,605

Series

2018-4,

Class

MA,

3.50%,

03/25/58

563

539,068

1,021,673

Total

Non-Agency

Mortgage-Backed

Securities

—

0.3%

(Cost:

$1,078,689)

..............................

1,021,673

U.S.

Government

Sponsored

Agency

Securities

Collateralized

Mortgage

Obligations

—

8.6%

Federal

Home

Loan

Mortgage

Corp.

Series

3745,

Class

ZA,

4.00%, 10/15/40

.

353

337,225

Series

3780,

Class

ZA,

4.00%, 12/15/40

.

1,313

1,256,476

Series

3960,

Class

PL,

4.00%, 11/15/41

.

900

863,847

Series

4161,

Class

BW,

2.50%, 02/15/43

.

500

429,174

Series

4325,

Class

ZX,

4.50%, 04/15/44

.

2,773

2,679,244

Series

4384,

Class

LB,

3.50%, 08/15/43

.

1,350

1,300,926

Federal

National

Mortgage

Association

Series

1996-48,

Class

Z,

7.00%, 11/25/26

40

40,945

Series

2010-134,

Class

KZ,

4.50%, 12/25/40

70

64,939

Series

2010-141,

Class

LZ,

4.50%, 12/25/40

118

111,872

Series

2011-8,

Class

ZA,

4.00%, 02/25/41

832

802,483

Series

2011-131,

Class

LZ,

4.50%, 12/25/41

111

108,727

Series

2017-76,

Class

PB,

3.00%, 10/25/57

(b)

..............

1,125

967,590

Series

2022-25,

Class

KL,

4.00%, 05/25/52

200

181,626

Federal

National

Mortgage

Association

Variable

Rate

Notes,

Series

2018-32,

Class

PS,

(LIBOR

USD

1

Month

+

7.23%),

3.64%, 05/25/48

(a)

................

1,286

1,130,562

Government

National

Mortgage

Association

Series

2015-79,

Class

MY,

3.50%, 05/20/45

3,278

2,944,349

Series

2015-106,

Class

DY,

3.50%, 07/20/45

2,411

2,114,660

Series

2016-123,

Class

LM,

3.00%, 09/20/46

...............

400

347,404

Government

National

Mortgage

Association

Variable

Rate

Notes

(a)

Series

2009-31,

Class

PT,

3.32%, 05/20/39

150

148,807

Series

2014-107,

Class

WX,

6.76%, 07/20/39

...............

644

671,098

Series

2015-55,

Class

A,

5.39%, 03/16/36

5,196

5,167,062

Series

2015-103,

Class

B,

6.90%, 01/20/40

3,117

3,263,596

Series

2015-187,

Class

C,

5.37%, 03/20/41

6,227

6,362,575

31,295,187

Interest

Only

Collateralized

Mortgage

Obligations

—

4.1%

Federal

Home

Loan

Mortgage

Corp.

Series

4062,

Class

GI,

4.00%, 02/15/41

.

47

3,105

Series

4533,

Class

JI,

5.00%, 12/15/45

..

385

74,356

Series

5159,

Class

KI,

3.00%, 11/25/51

..

801

111,661

Series

5159,

Class

PI,

3.00%, 11/25/51

..

1,345

190,251

Series

5176,

Class

QI,

3.00%, 12/25/51

.

722

111,039

Federal

Home

Loan

Mortgage

Corp.

Variable

Rate

Notes

(a)

Series

4119,

Class

SC,

(LIBOR

USD

1

Month

+

6.15%),

3.33%, 10/15/42

...

966

104,961

Series

4901,

Class

CS,

(LIBOR

USD

1

Month

+

6.10%),

3.02%, 07/25/49

...

2,082

246,198

Series

4941,

Class

SH,

(LIBOR

USD

1

Month

+

5.95%),

2.87%, 12/25/49

...

1,386

165,344

Federal

National

Mortgage

Association

Series

2013-10,

Class

PI,

3.00%, 02/25/43

67

9,276

Series

2014-68,

Class

YI,

4.50%, 11/25/44

76

16,545

Series

2015-74,

Class

IA,

6.00%, 10/25/45

2,216

536,914

Security

Par

(000)

Par

(000)

Value

Interest

Only

Collateralized

Mortgage

Obligations

(continued)

Series

2015-77,

6.00%, 10/25/45

......

USD

2,666

$

642,835

Series

2017-68,

Class

IE,

4.50%, 09/25/47

(b)

1,863

321,011

Series

2020-32,

4.00%, 05/25/50

......

1,064

234,818

Series

2020-32,

Class

PI,

4.00%, 05/25/50

1,058

233,540

Series

2021-23,

Class

CI,

3.50%, 07/25/46

896

167,422

Series

2021-41,

3.50%, 07/25/51

......

1,721

295,370

Federal

National

Mortgage

Association

Variable

Rate

Notes

(a)

Series

2015-66,

Class

AS,

(LIBOR

USD

1

Month

+

6.25%),

3.17%, 09/25/45

...

3,904

278,056

Series

2016-60,

Class

SD,

(LIBOR

USD

1

Month

+

6.10%),

3.02%, 09/25/46

...

562

41,692

Series

2016-78,

Class

CS,

(LIBOR

USD

1

Month

+

6.10%),

3.02%, 05/25/39

(b)

..

701

68,970

Series

2017-70,

Class

SA,

(LIBOR

USD

1

Month

+

6.15%),

3.07%, 09/25/47

...

716

76,552

Series

2019-5,

Class

SA,

(LIBOR

USD

1

Month

+

6.10%),

3.02%, 03/25/49

(b)

..

2,946

347,966

Series

2019-25,

Class

SA,

(LIBOR

USD

1

Month

+

6.05%),

2.97%, 06/25/49

(b)

..

2,474

260,251

Series

2019-35,

Class

SA,

(LIBOR

USD

1

Month

+

6.10%),

3.02%, 07/25/49

...

1,221

120,556

Government

National

Mortgage

Association

Series

2017-139,

Class

IB,

4.50%, 09/20/47

272

50,529

Series

2017-144,

Class

DI,

4.50%, 09/20/47

195

36,303

Series

2019-42,

Class

AI,

4.00%, 01/20/46

5,773

983,743

Series

2020-115,

Class

IM,

3.50%, 08/20/50

1,298

199,096

Series

2020-146,

Class

DI,

2.50%, 10/20/50

1,715

253,508

Series

2020-149,

Class

IA,

2.50%, 10/20/50

16,086

2,239,882

Series

2020-151,

Class

MI,

2.50%, 10/20/50

(b)

..............

19,710

2,593,052

Series

2020-162,

Class

TI,

2.50%, 10/20/50

3,073

395,975

Series

2020-175,

Class

DI,

2.50%, 11/20/50

607

85,763

Series

2020-185,

Class

MI,

2.50%, 12/20/50

2,192

299,492

Series

2021-104,

Class

IH,

3.00%, 06/20/51

1,293

195,963

Series

2021-149,

Class

KI,

3.00%, 08/20/51

2,110

321,880

Series

2021-159,

Class

IH,

3.00%, 09/20/51

8,685

1,171,737

Series

2022-127,

Class

IA,

3.50%, 03/20/52

7,218

1,259,398

Government

National

Mortgage

Association

Variable

Rate

Notes,

Series

2017-101,

Class

SL,

(LIBOR

USD

1

Month

+

6.20%),

3.19%, 07/20/47

(a)(b)

...............

1,227

150,616

14,895,626

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.7%

(a)

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates

Variable

Rate

Notes

Series

K105,

Class

X1,

1.64%, 01/25/30

.

7,300

624,530

Series

K110,

Class

X1,

1.81%, 04/25/30

.

650

61,751

Series

K116,

Class

X1,

1.53%, 07/25/30

.

1,126

92,807

Series

K119,

Class

X1,

1.03%, 09/25/30

.

1,790

100,440

Series

K120,

Class

X1,

1.13%, 10/25/30

.

9,120

564,595

Series

K122,

Class

X1,

0.97%, 11/25/30

.

2,768

149,021

Federal

National

Mortgage

Association

ACES

Variable

Rate

Notes,

Series

2020-M21,

Class

AX,

1.94%, 01/25/58

..........

2,657

373,804

Government

National

Mortgage

Association

Variable

Rate

Notes

Series

2016-22,

0.72%, 11/16/55

......

11,324

291,541

Series

2016-151,

0.85%, 06/16/58

.....

7,354

291,059

Series

2017-61,

0.77%, 05/16/59

......

1,971

81,275

2,630,823

BlackRock

GNMA

Portfolio

Schedules

of

Investments

19

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

—

145.4%

Federal

Home

Loan

Mortgage

Corp.

3.00%, 06/01/35

-

07/01/35

..........

USD

561

$

517,983

3.50%, 07/01/26

-

09/01/26

..........

14

13,527

4.00%, 06/01/25

-

05/01/26

..........

60

57,753

5.00%, 05/01/35

-

12/01/38

..........

47

47,873

5.65%, 05/01/37

-

12/01/37

..........

743

746,716

5.75%, 08/01/37

-

04/01/38

..........

1,054

1,061,457

7.50%, 03/01/27

.................

—

(d)

39

Federal

National

Mortgage

Association

3.50%, 11/01/46

.................

768

701,019

4.45%, 03/01/36

-

06/01/36

..........

409

404,426

4.94%, 01/01/35

-

05/01/35

..........

157

156,177

5.00%, 04/01/36

.................

88

87,012

5.20%, 08/01/34

-

09/01/34

..........

188

187,033

5.25%, 08/01/37

-

09/01/37

..........

473

465,229

5.54%, 01/01/35

.................

64

64,307

5.75%, 04/01/37

.................

275

268,536

5.80%, 07/01/34

.................

41

41,563

5.94%, 09/01/34

.................

64

64,497

6.50%, 09/01/28

-

02/01/31

..........

708

721,300

Government

National

Mortgage

Association

2.00%, 08/20/50

-

10/20/51

..........

52,303

43,761,727

2.00%, 10/20/51

(e)

................

46,230

38,811,481

2.00%, 10/15/52

(f)

................

5,404

4,499,619

2.50%, 11/20/40

-

11/20/51

..........

62,979

54,346,277

2.50%, 06/20/50

-

08/20/50

(c)

.........

53,493

46,292,656

2.50%, 10/15/52

(f)

................

31,703

27,236,878

3.00%, 05/15/42

-

10/20/51

..........

41,926

37,321,723

3.00%, 02/20/51

(c)

................

27,908

24,878,635

3.00%, 10/15/52

-

11/15/52

(f)

.........

22,223

19,633,587

3.50%, 04/15/41

-

09/20/51

..........

47,459

43,746,586

3.50%, 03/20/50

(c)

................

21,222

19,625,417

3.50%, 10/15/52

-

11/15/52

(f)

.........

27,251

24,781,229

4.00%, 10/20/41

-

05/20/51

..........

23,454

22,290,359

4.00%, 10/15/52

(f)

................

48,302

45,103,872

4.50%, 12/15/34

-

05/20/50

..........

12,045

11,725,384

4.50%, 10/15/52

(f)

................

5,700

5,455,746

5.00%, 09/15/28

-

05/20/50

..........

10,095

10,121,681

5.00%, 10/15/52

(f)

................

3,100

3,033,899

5.50%, 03/15/32

-

12/15/34

..........

4,429

4,631,740

5.64%, 04/15/37

-

06/15/37

..........

1,154

1,186,751

5.65%, 05/20/37

-

10/20/37

..........

475

477,687

5.75%, 08/20/37

-

12/20/37

..........

307

308,272

5.80%, 11/15/36

-

03/15/37

..........

1,278

1,303,549

6.00%, 03/20/28

-

01/15/39

..........

6,151

6,480,284

6.50%, 09/20/27

-

10/20/40

..........

1,957

2,014,939

7.00%, 03/20/24

-

05/20/27

..........

6

6,264

7.50%, 10/20/25

.................

1

785

8.00%, 03/15/23

-

05/15/30

..........

10

10,286

8.50%, 10/15/24

-

02/15/25

..........

7

6,904

Uniform

Mortgage-Backed

Securities

2.00%, 10/25/52

(f)

................

793

641,896

2.50%, 10/25/37

(f)

................

154

139,358

3.00%, 06/01/38

-

06/01/44

..........

8,241

7,494,777

3.00%, 10/25/52

(f)

................

3,200

2,784,625

3.50%, 10/25/37

-

10/25/52

(f)

.........

5,621

5,139,421

3.50%, 03/01/43

-

08/01/43

..........

886

814,071

4.00%, 01/01/45

.................

1,706

1,626,511

4.00%, 10/25/52

(f)

................

4,457

4,135,434

5.00%, 07/01/34

-

07/01/35

..........

822

828,497

5.25%, 07/01/37

-

08/01/37

..........

352

346,995

5.50%, 12/01/32

-

04/01/35

..........

90

91,552

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

6.50%, 08/01/35

.................

USD

492

$

507,851

529,251,652

Total

U.S.

Government

Sponsored

Agency

Securities

—

158.8%

(Cost:

$636,553,593)

.............................

578,073,288

Total

Long-Term

Investments

—

159.1%

(Cost:

$637,632,282)

.............................

579,094,961

Shares

Shares

Short-Term

Securities

Money

Market

Funds

—

0.4%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(g)(h)

.................

1,533,765

1,533,765

Total

Money

Market

Funds

—

0.4%

(Cost:

$1,533,765)

..............................

1,533,765

Par

(000)

Pa

r

(

000)

U.S.

Treasury

Obligations

—

0.9%

U.S.

Treasury

Bills

(

i

)

3.08%, 12/13/22

.................

1,581

1,571,586

3.18%, 12/22/22

.................

1,714

1,701,819

Total

U.S.

Treasury

Obligations

—

0.9%

(Cost:

$3,272,869)

..............................

3,273,405

Total

Short-Term

Securities

—

1.3%

(Cost:

$4,806,634)

..............................

4,807,170

Total

Investments

Before

Options

Written

and

TBA

Sale

Commitments

—

160.4%

(Cost:

$642,438,916

)

.............................

583,902,131

Total

Options

Written

—

(0.8)%

(Premium

Received

—

$(1,681,026))

..................

(3,063,563)

TBA

Sale

Commitments

(f)

Mortgage-Backed

Securities

—

(27.7)%

Government

National

Mortgage

Association

2.00%

,

 10/15/52

.................

(3,344)

(2,784,141)

2.50%

,

 10/15/52

-

11/15/52

..........

(69,481)

(59,689,324)

3.00%

,

 10/15/52

.................

(2,000)

(1,767,266)

3.50%

,

 10/15/52

.................

(21,075)

(19,167,548)

Uniform

Mortgage-Backed

Securities

3.00%

,

 10/25/52

-

11/25/52

..........

(9,102)

(7,918,406)

3.50%

,

 10/25/52

.................

(4,189)

(3,769,773)

4.00%

,

 10/25/52

.................

(6,124)

(5,682,163)

Total

TBA

Sale

Commitments

—

(27.7)%

(Proceeds:

$(104,213,665))

........................

(100,778,621)

Total

Investments

Net

of

Options

Written

and

TBA

Sale

Commitments

—

131.9%

(Cost:

$536,544,225

)

.............................

480,059,947

Liabilities

in

Excess

of

Other

Assets

—

(31.9)%

...........

(116,023,277)

Net

Assets

—

100.0%

..............................

$

364,036,670

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

GNMA

Portfolio

20

Schedule

of

Investments

(continued)

September

30,

2022

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(c)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

reverse

repurchase

agreements.

(d)

Rounds

to

less

than

1,000.

(e)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

TBA

commitments.

(f)

Represents

or

includes

a

TBA

transaction.

(g)

Annualized

7-day

yield

as

of

period

end.

(h)

Affiliate

of

the

Fund.

(i)

Rates

are

discount

rates

or

a

range

of

discount

rates

as

of

period

end.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

2,823,535

$

—

$

(1,289,770)

(a)

$

—

$

—

$

1,533,765

1,533,765

$

23,317

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

Reverse

Repurchase

Agreements

Counterparty

Interest

Rate

Trade

Date

Maturity

Date

Face

Value

Face

Value

Including

Accrued

Interest

Type

of

Non-Cash

Underlying

Collateral

Remaining

Contractual

Maturity

of

the

Agreements

Credit

Suisse

AG

.......

3.13

%

09/20/22

10/20/22  

$

24,107,850

$

24,128,810

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

Credit

Suisse

AG

.......

3.13

09/20/22

10/20/22  

19,448,782

19,465,692

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

Credit

Suisse

AG

.......

3.13

09/20/22

10/20/22  

12,110,060

12,120,589

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

Credit

Suisse

AG

.......

3.13

09/20/22

10/20/22  

24,622,784

24,644,192

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

$

80,289,476

$

80,359,283

BlackRock

GNMA

Portfolio

Schedules

of

Investments

21

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

2

Year

Note

....................................................

99

12/30/22

$

20,32

7

$

(6,188)

Short

Contracts

U.S.

Treasury

10

Year

Note

...................................................

374

12/20/22

41,911

112,924

U.S.

Treasury

10

Year

Ultra

Note

...............................................

32

12/20/22

3,793

209,608

U.S.

Treasury

Long

Bond

....................................................

34

12/20/22

4,302

279,788

U.S.

Treasury

Ultra

Bond

....................................................

12

12/20/22

1,640

136,077

U.S.

Treasury

5

Year

Note

....................................................

146

12/30/22

15,68

7

199,065

3

Month

SOFR

...........................................................

8

03/14/23

1,914

683

938,145

$

931,957

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

2-Year

Interest

Rate

Swap

(a)

.

2.37%

Semi-Annual

1

day

SOFR

Annual

Deutsche

Bank

AG

10/05/22

2.37

%

USD

13,200

$

—

10-Year

Interest

Rate

Swap

(a)

1.71%

Semi-Annual

1

day

SOFR

Annual

Deutsche

Bank

AG

10/28/22

1.71

USD

12,100

(8)

2-Year

Interest

Rate

Swap

(a)

.

2.43%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

10/31/22

2.43

USD

15,900

(35)

10-Year

Interest

Rate

Swap

(a)

2.10%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

03/17/23

2.10

USD

3,000

(6,545)

10-Year

Interest

Rate

Swap

(a)

3.13%

Semi-Annual

1

day

SOFR

Annual

Deutsche

Bank

AG

06/14/23

3.13

USD

3,000

(62,827)

(69,415)

Put

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.66%

Semi-Annual

Deutsche

Bank

AG

10/13/22

3.66

USD

11,500

(126,384)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

1.71%

Semi-Annual

Deutsche

Bank

AG

10/28/22

1.71

USD

12,100

(1,874,043)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.45%

Semi-Annual

Bank

of

America

NA

11/04/22

3.45

USD

13,800

(214,811)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.75%

Semi-Annual

Bank

of

America

NA

11/17/22

3.75

USD

14,600

(158,950)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

4.17%

Semi-Annual

Deutsche

Bank

AG

12/13/22

4.17

USD

15,500

(99,947)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.10%

Semi-Annual

Bank

of

America

NA

03/17/23

2.10

USD

3,000

(361,255)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.13%

Semi-Annual

Deutsche

Bank

AG

06/14/23

3.13

USD

3,000

(158,758)

(2,994,148)

$

(3,063,563)

(a)

Forward

settling

swaption.

Centrally

Cleared

Interest

Rate

Swap

s

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)

0.05%

Quarterly

1

day

Fed

Funds

Quarterly

10/21/22

USD

1,048

$

6,849

$

—

$

6,849

1

day

SOFR

Quarterly

0.05%

Quarterly

10/21/22

USD

1,048

(6,419)

—

(6,419)

3.13%

Annual

1

day

SOFR

Annual

06/14/24

USD

6,900

103,768

—

103,768

3.58%

Annual

1

day

SOFR

Annual

09/13/24

USD

6,700

76,678

—

76,678

3.63%

Annual

1

day

SOFR

Annual

09/13/24

USD

4,100

43,007

—

43,007

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

GNMA

Portfolio

22

Schedule

of

Investments

(continued)

September

30,

2022

i

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

Centrally

Cleared

Interest

Rate

Swaps

(continued)

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)

4.16%

Annual

1

day

SOFR

Annual

09/23/24

USD

9,700

$

6,990

$

—

$

6,990

4.32%

Annual

1

day

SOFR

Annual

09/27/24

USD

9,600

(21,956)

—

(21,956)

0.18%

Quarterly

1

day

Fed

Funds

Quarterly

10/21/25

USD

179

20,430

—

20,430

1

day

SOFR

Quarterly

0.17%

Quarterly

10/21/25

USD

179

(20,410)

—

(20,410)

0.56%

Quarterly

1

day

Fed

Funds

Quarterly

10/21/30

USD

41

8,746

—

8,746

1

day

SOFR

Quarterly

0.53%

Quarterly

10/21/30

USD

41

(8,839)

—

(8,839)

2.16%

Annual

1

day

SOFR

Annual

04/01/32

USD

2,700

295,334

—

295,334

2.65%

Annual

1

day

SOFR

Annual

06/02/32

USD

3,900

280,627

—

280,627

1

day

SOFR

Annual

3.64%

Annual

09/28/32

USD

2,400

15,317

4,866

10,451

$

800,122

$

4,866

$

795,256

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

Fed

Funds

......................................

1

day

Fed

Funds

3.08

%

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

4,866

$

—

$

852,880

$

(57,624)

$

—

Options

Written

...................................................

N/A

N/A

1,203,219

(2,585,756)

(3,063,563)

(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.

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)

.....

$

—

$

—

$

—

$

—

$

938,145

$

—

$

938,145

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

852,880

—

852,880

$

—

$

—

$

—

$

—

$

1,791,025

$

—

$

1,791,025

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

6,188

$

—

$

6,188

Options

written

(b)

Options

written

at

value

.....................

—

—

—

—

3,063,563

—

3,063,563

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

57,624

—

57,624

$

—

$

—

$

—

$

—

$

3,127,375

$

—

$

3,127,375

(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).

(b)

Includes

forward

settling

swaptions.

BlackRock

GNMA

Portfolio

Schedules

of

Investments

23

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

(a)

Includes

unrealized

appreciation

(depreciation)

on

OTC

swaps

and

swap

premiums

(paid/received)

in

the

Statements

of

Assets

and

Liabilities.

For

the

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

—

$

—

$

13,931,244

$

—

$

13,931,244

Options

purchased

(a)

....................

—

—

—

—

628,877

—

628,877

Options

written

........................

—

—

—

—

1,667,740

—

1,667,740

Swaps

..............................

—

—

—

—

(3,825,568)

—

(3,825,568)

$

—

$

—

$

—

$

—

$

12,402,293

$

—

$

12,402,293

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

334,984

$

—

$

334,984

Options

purchased

(b)

....................

—

—

—

—

225,203

—

225,203

Options

written

........................

—

—

—

—

(1,688,745)

—

(1,688,745)

Swaps

..............................

—

—

—

—

1,678,578

—

1,678,578

$

—

$

—

$

—

$

—

$

550,020

$

—

$

550,020

(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

..................................................................................

$

8,626,336

Average

notional

value

of

contracts

—

short

.................................................................................

$

131,048,148

Options

Average

value

of

option

contracts

written

...................................................................................

$

5,586

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

5,100,000

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

128,125,000

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

39,745,031

Average

notional

value

—

receives

fixed

rate

................................................................................

$

3,067,531

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

259,020

$

16,652

Options

(a)(b)

........................................................................................

—

3,063,563

Swaps

—

centrally

cleared

..............................................................................

90,751

—

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

349,771

$

3,080,215

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(349,771)

(16,652)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

—

$

3,063,563

(b)

Includes

forward

setting

swaptions.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

GNMA

Portfolio

24

Schedule

of

Investments

(continued)

September

30,

2022

(a)

Excess

of

collateral

received/pledged,

if

any,

from

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

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

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

Non-cash

Collateral

Pledged

Cash

Collateral

Pledged

(a)

Net

Amount

of

Derivative

Liabilities

Bank

of

America

NA

..............................

$

741,596

$

—

$

—

$

(741,596)

$

—

Deutsche

Bank

AG

...............................

2,321,967

—

—

(2,321,967)

—

$

3,063,563

$

—

$

—

$

(3,063,563)

$

—

BlackRock

GNMA

Portfolio

Schedules

of

Investments

25

Schedule

of

Investments

(continued)

September

30,

2022

(a)

As

of

September

30,

2021,

the

Fund

used

observable

inputs

in

determining

the

value

of

certain

investments.

As

of

September

30,

2022

the

Fund

used

significant

unobservable

inputs

in

determining

the

value

of

the

same

investments.

As

a

result,

investments

at

beginning

of

period

value

were

transferred

from

Level

2

to

Level

3

in

the

fair

value

hierarchy.

(b)

Included

in

the

related

net

change

in

unrealized

appreciation

(depreciation)

in

the

Statements

of

Operations.

(c)

Any

difference

between

net

change

in

unrealized

appreciation

(depreciation)

and

net

change

in

unrealized

appreciation

(depreciation)

on

investments

still

held

at

September

30,

2022

is

generally

due

to

investments

no

longer

held

or

categorized

as

Level

3

at

period

end.

See

notes

to

financial

statements.

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Non-Agency

Mortgage-Backed

Securities

........................

$

—

$

1,021,673

$

—

$

1,021,673

U.S.

Government

Sponsored

Agency

Securities

....................

—

573,363,832

4,709,456

578,073,288

Short-Term

Securities

Money

Market

Funds

......................................

1,533,765

—

—

1,533,765

U.S.

Treasury

Obligations

...................................

—

3,273,405

—

3,273,405

Liabilities

Investments

TBA

Sale

Commitments

....................................

—

(100,778,621)

—

(100,778,621)

$

1,533,765

$

476,880,289

$

4,709,456

$

483,123,510

Derivative

Financial

Instruments

(a)

Assets

Interest

rate

contracts

.......................................

$

938,145

$

852,880

$

—

$

1,791,025

Liabilities

Interest

rate

contracts

.......................................

(6,188)

(3,121,187)

—

(3,127,375)

$

931,957

$

(2,268,307)

$

—

$

(1,336,350)

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts

and

options

written.

Swaps

and

futures

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

The

Fund

may

hold

assets

and/or

liabilities

in

which

the

fair

value

approximates

the

carrying

amount

or

face

value,

including

accrued

interest,

for

financial

statement

purposes.

As

of

period

end,

reverse

repurchase

agreements

of

$80,359,283

are

categorized

as

Level

2

within

the

disclosure

hierarchy.

A

reconciliation

of

Level

3

financial

instruments

is

presented

when

the

Fund

had

a

significant

amount

of

Level

3

investments

and

derivative

financial

instruments

at

the

beginning

and/or

end

of

the

year

in

relation

to

net

assets.

The

following

table

is

a

reconciliation

of

Level

3

investments

for

which

significant

unobservable

inputs

were

used

in

determining

fair

value:

U.S.

Government

Sponsored

Agency

Securities

Total

Investments

Assets

Opening

balance,

as

of

September

30,

2021

....................................................................................

$

—

$

—

Transfers

into

Level

3

(a)

.................................................................................................

6,227,413

6,227,413

Transfers

out

of

Level

3

.................................................................................................

—

—

Accrued

discounts/premiums

..............................................................................................

(1,042,533)

(1,042,533)

Net

realized

gain

.....................................................................................................

—

—

Net

change

in

unrealized

depreciation

(b)(c)

......................................................................................

(475,424)

(475,424)

Purchases

..........................................................................................................

—

—

Sales

.............................................................................................................

—

—

Closing

balance,

as

of

September

30,

2022

....................................................................................

$

4,709,456

$

4,709,456

Net

change

in

unrealized

depreciation

on

investments

still

held

at

September

30,

202

2

(c)

.......................................................

$

(475,424)

$

(475,424)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Impact

Mortgage

Fund

26

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

Mosaic

Solar

Loan

Trust,

Series

2019-2A,

Class

A,

2.88%,

09/20/40

(a)

..........

USD

99

$

85,453

Total

Asset-Backed

Securities

—

0.0%

(Cost:

$98,516)

................................

85,453

Non-Agency

Mortgage-Backed

Securities

Commercial

Mortgage-Backed

Securities

—

4.5%

280

Park

Avenue

Mortgage

Trust,

Series

2017-280P,

Class

A,

(LIBOR

USD

1

Month

+

0.88%),

3.58%,

09/15/34

(a)(b)

.........

2,760

2,687,120

BAMLL

Commercial

Mortgage

Securities

Trust,

Series

2018-DSNY,

Class

A,

(LIBOR

USD

1

Month

+

0.85%),

3.67%,

09/15/34

(a)(b)

...

427

418,186

BFLD

Trust

(a)(b)

Series

2019-DPLO,

Class

A,

(LIBOR

USD

1

Month

+

1.09%),

3.91%,

10/15/34

...

45

43,930

Series

2020-EYP,

Class

A,

(LIBOR

USD

1

Month

+

1.15%),

3.97%,

10/15/35

...

1,984

1,914,192

BMO

Mortgage

Trust,

Series

2022-C1,

Class

A5,

3.37%,

02/15/55

(b)

.............

71

61,341

BPR

Trust,

Series

2021-TY,

Class

A,

(LIBOR

USD

1

Month

+

1.05%),

3.87%,

09/15/38

(a)(b)

1,526

1,449,965

BX

Trust

(a)(b)

Series

2018-BILT,

Class

A,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

05/15/30

...

282

272,783

Series

2021-MFM1,

Class

C,

(LIBOR

USD

1

Month

+

1.20%),

4.02%,

01/15/34

...

450

426,311

Series

2021-VIEW,

Class

A,

(LIBOR

USD

1

Month

+

1.28%),

4.10%,

06/15/36

...

780

746,734

CFK

Trust,

Series

2020-MF2,

Class

B,

2.79%,

03/15/39

(a)

.....................

810

692,734

Citigroup

Commercial

Mortgage

Trust,

Series

2020-420K,

Class

B,

2.86%,

11/10/42

(a)

..

100

78,132

Commercial

Mortgage

Trust

Series

2017-COR2,

Class

AM,

3.80%,

09/10/50

....................

297

268,346

Series

2019-521F,

Class

B,

(LIBOR

USD

1

Month

+

1.10%),

3.92%,

06/15/34

(a)(b)

.

923

898,477

Credit

Suisse

Mortgage

Capital

Certificates

(a)

Series

2020-NET,

Class

A,

2.26%,

08/15/37

(c)

...................

951

872,934

Series

2021-980M,

Class

A,

2.39%,

07/15/31

....................

600

513,174

CSAIL

Commercial

Mortgage

Trust

(b)

Series

2018-CX11,

Class

A5,

4.03%,

04/15/51

....................

658

610,951

Series

2018-CX12,

Class

A4,

4.22%,

08/15/51

....................

290

273,304

CSMC

Trust,

Series

2021-BHAR,

Class

A,

(LIBOR

USD

1

Month

+

1.15%),

3.97%,

11/15/38

(a)(b)

....................

1,170

1,117,815

GCT

Commercial

Mortgage

Trust,

Series

2021-GCT,

Class

A,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

02/15/38

(a)(b)

.........

630

607,649

GS

Mortgage

Securities

Trust,

Series

2012-

GCJ9,

Class

C,

4.45%,

11/10/45

(a)(b)

....

200

199,205

Hawaii

Hotel

Trust,

Series

2019-MAUI,

Class

A,

(LIBOR

USD

1

Month

+

1.15%),

3.97%,

05/15/38

(a)(b)

....................

100

97,424

Hudson

Yards

Mortgage

Trust,

Series

2019-

30HY,

Class

D,

3.56%,

07/10/39

(a)(b)

....

526

413,797

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

(continued)

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

(a)(b)

Series

2020-609M,

Class

A,

(LIBOR

USD

1

Month

+

1.37%),

4.19%,

10/15/33

...

USD

1,400

$

1,343,696

Series

2020-609M,

Class

D,

(LIBOR

USD

1

Month

+

2.77%),

5.59%,

10/15/33

...

400

375,770

Series

2020-MKST,

Class

B,

(LIBOR

USD

1

Month

+

1.05%),

3.87%,

12/15/36

...

986

937,262

KKR

Industrial

Portfolio

Trust,

Series

2021-

KDIP,

Class

B,

(LIBOR

USD

1

Month

+

0.80%),

3.62%,

12/15/37

(a)(b)

.........

105

99,998

MF1

Multifamily

Housing

Mortgage

Loan

Trust,

Series

2021-W10,

Class

A,

(1

Month

CME

Term

SOFR

+

1.07%),

3.92%,

12/15/34

(a)(b)

250

246,607

Morgan

Stanley

Capital

I

Trust

(b)

Series

2018-H3,

Class

B,

4.62%,

07/15/51

533

482,587

Series

2018-SUN,

Class

A,

(LIBOR

USD

1

Month

+

0.90%),

3.72%,

07/15/35

(a)

..

1,480

1,447,481

Wells

Fargo

Commercial

Mortgage

Trust,

Series

2021-FCMT,

Class

A,

(LIBOR

USD

1

Month

+

1.20%),

4.02%,

05/15/31

(a)(b)

...

2,180

2,069,534

21,667,439

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.8%

(b)

Arbor

Multifamily

Mortgage

Securities

Trust

(a)

Series

2020-MF1,

Class

XA,

1.08%,

05/15/53

....................

996

52,087

Series

2021-MF3,

Class

XA,

0.85%,

10/15/54

....................

1,462

62,569

BANK

Series

2020-BN29,

Class

XA,

1.45%,

11/15/53

....................

2,748

209,176

Series

2021-BN33,

Class

XA,

1.17%,

05/15/64

....................

9,643

581,589

Benchmark

Mortgage

Trust

Series

2020-B20,

Class

XA,

1.73%,

10/15/53

....................

11,010

875,935

Series

2020-B21,

Class

XA,

1.57%,

12/17/53

....................

2,721

214,715

CSAIL

Commercial

Mortgage

Trust

Series

2018-C14,

Class

XA,

0.72%,

11/15/51

....................

3,010

79,422

Series

2019-C16,

Class

XA,

1.71%,

06/15/52

....................

10,142

778,331

UBS

Commercial

Mortgage

Trust,

Series

2019-

C17,

Class

XA,

1.61%,

10/15/52

......

7,592

550,126

Wells

Fargo

Commercial

Mortgage

Trust,

Series

2021-C59,

Class

XA,

1.67%,

04/15/54

......................

2,473

212,268

3,616,218

Total

Non-Agency

Mortgage-Backed

Securities

—

5.3%

(Cost:

$27,286,951)

..............................

25,283,657

U.S.

Government

Sponsored

Agency

Securities

Collateralized

Mortgage

Obligations

—

0.4%

Federal

National

Mortgage

Association,

Series

2011-8,

Class

ZA,

4.00%, 02/25/41

.....

797

769,046

Government

National

Mortgage

Association,

Series

2016-123,

Class

LM,

3.00%, 09/20/46

.................

500

434,255

Government

National

Mortgage

Association

Variable

Rate

Notes,

Series

2014-107,

Class

WX,

6.76%, 07/20/39

(b)

.............

626

652,746

1,856,047

BlackRock

Impact

Mortgage

Fund

Schedules

of

Investments

27

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Mortgage-Backed

Securities

—

0.9%

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates,

Series

KSG4,

Class

A2,

3.40%, 08/25/32

(b)

USD

5,000

$

4,552,963

Interest

Only

Collateralized

Mortgage

Obligations

—

1.5%

Federal

National

Mortgage

Association

Series

2020-32,

4.00%, 05/25/50

......

1,490

328,745

Series

2020-32,

Class

PI,

4.00%, 05/25/50

1,539

339,695

Government

National

Mortgage

Association

Series

2020-115,

Class

IM,

3.50%, 08/20/50

1,731

265,461

Series

2020-146,

Class

DI,

2.50%, 10/20/50

2,494

368,739

Series

2020-149,

Class

IA,

2.50%, 10/20/50

16,134

2,246,542

Series

2020-162,

Class

TI,

2.50%, 10/20/50

4,302

554,364

Series

2020-175,

Class

DI,

2.50%, 11/20/50

835

117,923

Series

2020-185,

Class

MI,

2.50%, 12/20/50

3,004

410,415

Series

2021-159,

Class

IH,

3.00%, 09/20/51

8,712

1,175,440

Series

2022-127,

Class

IA,

3.50%, 03/20/52

7,178

1,252,410

7,059,734

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.6%

(b)

Federal

Home

Loan

Mortgage

Corp.

Multifamily

Structured

Pass-Through

Certificates

Variable

Rate

Notes

Series

K105,

Class

X1,

1.64%, 01/25/30

.

9,006

770,459

Series

K110,

Class

X1,

1.81%, 04/25/30

.

793

75,389

Series

K116,

Class

X1,

1.53%, 07/25/30

.

1,406

115,886

Series

K119,

Class

X1,

1.03%, 09/25/30

.

2,358

132,281

Series

K120,

Class

X1,

1.13%, 10/25/30

.

11,375

704,252

Series

K122,

Class

X1,

0.97%, 11/25/30

.

3,427

184,518

Federal

National

Mortgage

Association

ACES

Variable

Rate

Notes,

Series

2020-M21,

Class

AX,

1.94%, 01/25/58

..........

3,253

457,611

Government

National

Mortgage

Association

Variable

Rate

Notes

Series

2005-9,

0.30%, 01/16/45

.......

775

6

Series

2005-50,

0.34%, 06/16/45

......

1,433

7,573

Series

2006-30,

2.73%, 05/16/46

......

283

19

Series

2016-22,

0.72%, 11/16/55

......

13,235

340,752

Series

2016-151,

0.85%, 06/16/58

.....

4,323

171,108

Series

2017-30,

0.58%, 08/16/58

......

2,377

68,694

Series

2017-61,

0.77%, 05/16/59

......

1,998

82,351

3,110,899

Mortgage-Backed

Securities

—

184.4%

Federal

Home

Loan

Mortgage

Corp.

2.50%, 03/01/30

-

04/01/31

..........

953

885,083

3.00%, 09/01/27

-

12/01/46

..........

1,674

1,537,923

3.50%, 04/01/42

-

01/01/48

..........

1,344

1,242,557

4.00%, 08/01/40

-

12/01/45

..........

1,222

1,162,784

4.50%, 02/01/39

-

08/01/48

..........

1,491

1,453,211

5.00%, 04/01/36

-

11/01/48

..........

628

632,844

5.50%, 06/01/41

.................

546

564,972

Federal

National

Mortgage

Association

3.50%, 11/01/46

.................

901

821,885

4.00%, 01/01/41

.................

27

25,704

Government

National

Mortgage

Association

2.00%, 08/20/50

-

04/20/51

..........

11,959

9,987,066

2.00%, 10/15/52

(d)

................

19,828

16,508,609

2.50%, 02/20/51

-

01/20/52

..........

26,232

22,419,276

2.50%, 10/15/52

(d)

................

2,385

2,049,090

3.00%, 02/15/45

-

12/20/51

..........

30,122

26,898,100

3.00%, 10/15/52

(d)

................

3,181

2,810,836

3.50%, 01/20/41

-

02/20/52

..........

59,094

53,924,463

3.50%, 10/15/52

(d)

................

1,835

1,668,918

4.00%, 04/20/39

-

01/20/52

..........

32,758

30,653,936

4.00%, 10/15/52

(d)

................

2,195

2,049,667

4.50%, 12/20/39

-

08/20/50

..........

4,591

4,448,279

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

4.50%, 10/15/52

(d)

................

USD

104

$

99,543

5.00%, 12/15/38

-

06/20/52

..........

5,211

5,205,251

5.50%, 09/20/52

.................

1,687

1,737,862

7.00%, 06/15/23

-

11/15/23

..........

—

(e)

6

Uniform

Mortgage-Backed

Securities

1.50%, 10/25/37

(d)

................

2,971

2,547,284

1.50%, 11/01/41

-

03/01/51

..........

11,786

9,306,224

2.00%, 10/01/31

-

03/01/52

..........

50,594

41,334,260

2.00%, 10/25/37

-

10/25/52

(d)

.........

93,082

75,857,501

2.50%, 04/01/30

-

03/01/52

..........

15,188

13,359,928

2.50%, 10/25/52

-

11/25/52

(d)

.........

165,058

138,313,387

3.00%, 04/01/28

-

08/01/52

..........

37,777

33,450,968

3.00%, 10/25/52

-

11/25/52

(d)

.........

38,710

33,676,965

3.50%, 11/01/28

-

07/01/52

..........

16,238

14,924,284

3.50%, 08/01/52

(f)

................

27,409

24,709,609

4.00%, 09/01/33

-

08/01/52

..........

34,857

32,602,567

4.00%, 08/01/52

(g)

................

51,477

47,821,381

4.00%, 10/25/52

(d)

................

75,122

69,702,443

4.50%, 02/01/25

-

07/01/48

..........

3,247

3,174,424

4.50%, 07/01/52

-

08/01/52

(g)

.........

62,213

59,800,438

4.50%, 08/01/52

-

09/01/52

(f)

.........

45,272

43,277,872

4.50%, 10/25/52

-

11/25/52

(d)

.........

7,307

6,955,152

5.00%, 11/01/32

-

08/01/52

..........

48,161

47,043,602

5.00%, 10/25/52

(d)

................

2,452

2,388,414

5.50%, 02/01/35

-

04/01/41

..........

1,697

1,741,437

6.00%, 05/01/33

-

06/01/41

..........

1,618

1,695,963

6.50%, 05/01/40

.................

338

355,172

892,827,140

Total

U.S.

Government

Sponsored

Agency

Securities

—

187.8%

(Cost:

$975,443,818)

.............................

909,406,783

Total

Long-Term

Investments

—

193.1%

(Cost:

$1,002,829,285)

...........................

934,775,893

Shares

Shares

Short-Term

Securities

Money

Market

Funds

—

0.9%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(h)(

i

)

.................

4,244,707

4,244,707

Total

Short-Term

Securities

—

0.9%

(Cost:

$4,244,707)

..............................

4,244,707

Total

Options

Purchased

—

0.0%

(Cost:

$188,345)

................................

188,791

Total

Investments

Before

Options

Written

and

TBA

Sale

Commitments

—

194.0%

(Cost:

$1,007,262,337

)

...........................

939,209,391

Total

Options

Written

—

(0.9)%

(Premium

Received

—

$(2,320,839))

..................

(4,132,497)

Par

(000)

Pa

r

(

000)

TBA

Sale

Commitments

(d)

Mortgage-Backed

Securities

—

(84.9)%

Government

National

Mortgage

Association

2.00%

,

 10/15/52

.................

(1,083)

(901,682)

2.50%

,

 10/15/52

.................

(1,166)

(1,001,735)

3.00%

,

 10/15/52

.................

(5,576)

(4,927,505)

3.50%

,

 10/15/52

.................

(3,441)

(3,129,996)

4.00%

,

 10/15/52

.................

(1,145)

(1,069,189)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Impact

Mortgage

Fund

28

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

Uniform

Mortgage-Backed

Securities

2.50%

,

 10/25/37

-

10/25/52

..........

USD

(81,129)

$

(68,204,616)

3.00%

,

 10/25/37

-

11/25/52

..........

(22,001)

(19,234,279)

3.50%

,

 10/25/37

-

10/25/52

..........

(42,669)

(38,444,848)

1.50%

,

 10/25/52

.................

(786)

(602,656)

2.00%

,

 10/25/52

.................

(39,067)

(31,622,963)

4.00%

,

 10/25/52

-

11/25/52

..........

(148,058)

(137,306,959)

4.50%

,

 10/25/52

.................

(80,807)

(76,974,981)

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

5.00%

,

 10/25/52

.................

USD

(28,307)

$

(27,572,931)

Total

TBA

Sale

Commitments

—

(84.9)%

(Proceeds:

$(429,968,250))

........................

(410,994,340)

Total

Investments

Net

of

Options

Written

and

TBA

Sale

Commitments

—

108.2%

(Cost:

$574,973,248

)

.............................

524,082,554

Liabilities

in

Excess

of

Other

Assets

—

(8.2)%

............

(39,882,690)

Net

Assets

—

100.0%

..............................

$

484,199,864

(a)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(b)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(c)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(d)

Represents

or

includes

a

TBA

transaction.

(e)

Rounds

to

less

than

1,000.

(f)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

TBA

commitments.

(g)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

reverse

repurchase

agreements.

(h)

Annualized

7-day

yield

as

of

period

end.

(i)

Affiliate

of

the

Fund.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

47,493,852

$

—

$

(43,249,145)

(a)

$

—

$

—

$

4,244,707

4,244,707

$

76,574

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

Reverse

Repurchase

Agreements

Counterparty

Interest

Rate

Trade

Date

Maturity

Date

Face

Value

Face

Value

Including

Accrued

Interest

Type

of

Non-Cash

Underlying

Collateral

Remaining

Contractual

Maturity

of

the

Agreements

BofA

Securities

,

Inc.

.....

2.90

%

09/12/22

10/13/22  

$

29,061,734

$

29,101,532

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

BofA

Securities

,

Inc.

.....

2.90

09/12/22

10/13/22  

48,501,164

48,567,584

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

BofA

Securities

,

Inc.

.....

2.90

09/12/22

10/13/22  

31,389,195

31,432,181

U.S.

Government

Sponsored

Agency

Securities

Up

to

30

days

$

108,952,093

$

109,101,297

BlackRock

Impact

Mortgage

Fund

Schedules

of

Investments

29

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

Long

Bond

....................................................

262

12/20/22

$

33,151

$

(2,183,440)

U.S.

Treasury

Ultra

Bond

....................................................

1

12/20/22

137

(6,278)

U.S.

Treasury

2

Year

Note

....................................................

32

12/30/22

6,570

11,811

(2,177,907)

Short

Contracts

U.S.

Treasury

10

Year

Note

...................................................

298

12/20/22

33,395

(1,431)

U.S.

Treasury

10

Year

Ultra

Note

...............................................

19

12/20/22

2,252

105,464

U.S.

Treasury

5

Year

Note

....................................................

502

12/30/22

53,938

1,322,307

1,426,340

$

(751,567)

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

MXN

7,330,000

USD

359,924

Goldman

Sachs

International

11/23/22

$

608

MXN

1,156,538

USD

56,709

HSBC

Bank

plc

11/23/22

175

USD

116,256

COP

509,433,000

JPMorgan

Chase

Bank

NA

11/23/22

6,831

USD

361,077

MXN

7,330,000

HSBC

Bank

plc

11/23/22

545

8,159

COP

509,433,000

USD

114,355

JPMorgan

Chase

Bank

NA

11/23/22

(4,929)

USD

56,675

MXN

1,156,538

HSBC

Bank

plc

11/23/22

(210)

(5,139)

$

3,020

OTC

Interest

Rate

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.25%

Semi-Annual

Goldman

Sachs

International

09/23/24

3.25

%

USD

318

$

14,556

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.28%

Semi-Annual

Goldman

Sachs

International

09/23/24

3.28

USD

1,219

57,537

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.14%

Semi-Annual

BNP

Paribas

SA

09/23/25

3.14

USD

269

13,208

85,301

Put

10-Year

Interest

Rate

Swap

(a)

3.28%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

09/23/24

3.28

USD

1,219

67,929

10-Year

Interest

Rate

Swap

(a)

3.25%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

09/23/24

3.25

USD

318

18,122

10-Year

Interest

Rate

Swap

(a)

3.14%

Semi-Annual

1

day

SOFR

Annual

BNP

Paribas

SA

09/23/25

3.14

USD

269

17,439

103,490

$

188,791

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Impact

Mortgage

Fund

30

Schedule

of

Investments

(continued)

September

30,

2022

i

(a)

Forward

settling

swaption.

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

2-Year

Interest

Rate

Swap

(a)

.

2.37%

Semi-Annual

1

day

SOFR

Annual

Deutsche

Bank

AG

10/05/22

2.37

%

USD

17,500

$

—

10-Year

Interest

Rate

Swap

(a)

1.71%

Semi-Annual

1

day

SOFR

Annual

Deutsche

Bank

AG

10/28/22

1.71

USD

14,900

(9)

2-Year

Interest

Rate

Swap

(a)

.

2.43%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

10/31/22

2.43

USD

21,300

(47)

10-Year

Interest

Rate

Swap

(a)

2.10%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

03/17/23

2.10

USD

3,900

(8,509)

10-Year

Interest

Rate

Swap

(a)

2.60%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

04/12/23

2.60

USD

2,300

(15,505)

10-Year

Interest

Rate

Swap

(a)

3.13%

Semi-Annual

1

day

SOFR

Annual

Deutsche

Bank

AG

06/14/23

3.13

USD

4,000

(83,770)

(107,840)

Put

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.66%

Semi-Annual

Deutsche

Bank

AG

10/13/22

3.66

USD

18,900

(207,709)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

1.71%

Semi-Annual

Deutsche

Bank

AG

10/28/22

1.71

USD

14,900

(2,307,705)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.45%

Semi-Annual

Bank

of

America

NA

11/04/22

3.45

USD

18,400

(286,414)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.75%

Semi-Annual

Bank

of

America

NA

11/17/22

3.75

USD

19,600

(213,384)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

4.17%

Semi-Annual

Deutsche

Bank

AG

12/13/22

4.17

USD

21,000

(135,415)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.10%

Semi-Annual

Bank

of

America

NA

03/17/23

2.10

USD

3,900

(469,632)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.60%

Semi-Annual

Bank

of

America

NA

04/12/23

2.60

USD

2,300

(192,721)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.13%

Semi-Annual

Deutsche

Bank

AG

06/14/23

3.13

USD

4,000

(211,677)

(4,024,657)

$

(4,132,497)

(a)

Forward

settling

swaption.

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

3.13%

Annual

1

day

SOFR

Annual

N/A

06/14/24

USD

9,200

$

138,358

$

—

$

138,358

3.58%

Annual

1

day

SOFR

Annual

N/A

09/13/24

USD

9,100

104,145

—

104,145

3.63%

Annual

1

day

SOFR

Annual

N/A

09/13/24

USD

5,600

58,741

—

58,741

4.16%

Annual

1

day

SOFR

Annual

N/A

09/23/24

USD

12,800

9,224

—

9,224

4.32%

Annual

1

day

SOFR

Annual

N/A

09/27/24

USD

12,800

(29,275)

—

(29,275)

2.16%

Annual

1

day

SOFR

Annual

N/A

04/01/32

USD

3,500

382,840

—

382,840

2.65%

Annual

1

day

SOFR

Annual

N/A

06/02/32

USD

5,100

366,973

—

366,973

1

day

SOFR

Annual

3.64%

Annual

N/A

09/28/32

USD

3,000

19,145

6,082

13,063

$

1,050,151

$

6,082

$

1,044,069

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

%

BlackRock

Impact

Mortgage

Fund

Schedules

of

Investments

31

Schedule

of

Investments

(continued)

September

30,

2022

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

6,082

$

—

$

1,073,344

$

(29,275)

$

1,050,151

Options

Written

...................................................

N/A

N/A

1,574,065

(3,385,723)

(4,132,497)

(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.

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)

.....

$

—

$

—

$

—

$

—

$

1,439,582

$

—

$

1,439,582

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

8,159

—

—

8,159

Options

purchased

(b)

Investments

at

value

—

unaffiliated

(c)

...........

—

—

—

—

188,791

—

188,791

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

1,073,344

—

1,073,344

$

—

$

—

$

—

$

8,159

$

2,701,717

$

—

$

2,709,876

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

2,191,149

$

—

$

2,191,149

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

5,139

—

—

5,139

Options

written

(b)

Options

written

at

value

.....................

—

—

—

—

4,132,497

—

4,132,497

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

29,275

—

29,275

$

—

$

—

$

—

$

5,139

$

6,352,921

$

—

$

6,358,060

(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).

(b)

Includes

forward

settling

swaptions.

(c)

Includes

options

purchased

at

value

as

reported

in

the

Schedule

of

Investments.

For

the

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

—

$

—

$

3,033,131

$

—

$

3,033,131

Forward

foreign

currency

exchange

contracts

....

—

—

—

(341,082)

—

—

(341,082)

Options

purchased

(a)

....................

—

—

—

(100,187)

489,323

—

389,136

Options

written

........................

—

—

—

5,092

1,702,883

—

1,707,975

Swaps

..............................

—

18,627

—

—

(3,868,730)

(1,751,480)

(5,601,583)

$

—

$

18,627

$

—

$

(436,177)

$

1,356,607

$

(1,751,480)

$

(812,423)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Impact

Mortgage

Fund

32

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Commodity

Contracts

Credit

Contracts

Equity

Contracts

Foreign

Currency

Exchange

Contracts

Interest

Rate

Contracts

Other

Contracts

Total

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

(1,088,102)

$

—

$

(1,088,102)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(534)

—

—

(534)

Options

purchased

(b)

....................

—

—

—

5,993

550,828

—

556,821

Options

written

........................

—

—

—

—

(2,174,753)

—

(2,174,753)

Swaps

..............................

—

(5,588)

—

—

1,213,490

489,882

1,697,784

$

—

$

(5,588)

$

—

$

5,459

$

(1,498,537)

$

489,882

$

(1,008,784)

(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

..................................................................................

$

31,437,549

Average

notional

value

of

contracts

—

short

.................................................................................

$

91,442,404

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

2,982,007

Average

amounts

sold

—

in

USD

........................................................................................

$

2,264,411

Options

Average

value

of

option

contracts

purchased

................................................................................

$

45,708

Average

value

of

option

contracts

written

...................................................................................

$

10,064

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

33,145,600

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

202,803,869

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

662,171

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

43,276,300

Average

notional

value

—

receives

fixed

rate

................................................................................

$

121,316,218

Inflation

swaps

Average

notional

value

—

receives

fixed

rate

................................................................................

$

10,098,380

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

259,046

$

121,657

Forward

foreign

currency

exchange

contracts

.................................................................

8,159

5,139

Options

(a)(b)

........................................................................................

188,791

4,132,497

Swaps

—

centrally

cleared

..............................................................................

121,273

—

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

577,269

$

4,259,293

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(380,319)

(121,657)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

196,950

$

4,137,636

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Statements

of

Assets

and

Liabilities

and

reported

in

the

Schedule

of

Investments.

(b)

Includes

forward

settling

swaptions.

BlackRock

Impact

Mortgage

Fund

Schedules

of

Investments

33

Schedule

of

Investments

(continued)

September

30,

2022

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)

BNP

Paribas

SA

.................................

$

30,647

$

—

$

—

$

—

$

30,647

Goldman

Sachs

International

........................

158,752

—

—

—

158,752

HSBC

Bank

plc

..................................

720

(210)

—

—

510

JPMorgan

Chase

Bank

NA

..........................

6,831

(4,930)

—

—

1,901

$

196,950

$

(5,140)

$

—

$

—

$

191,810

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

..............................

$

1,186,212

$

—

$

—

$

(1,152,000)

$

34,212

Deutsche

Bank

AG

...............................

2,946,285

—

—

(2,837,000)

109,285

HSBC

Bank

plc

..................................

210

(210)

—

—

—

JPMorgan

Chase

Bank

NA

..........................

4,929

(4,9

29

)

—

—

—

$

4,137,636

$

(5,1

39

)

$

—

$

(3,989,000)

$

143,497

(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

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

...................................

$

—

$

85,453

$

—

$

85,453

Non-Agency

Mortgage-Backed

Securities

........................

—

24,410,723

872,934

25,283,657

U.S.

Government

Sponsored

Agency

Securities

....................

—

909,406,783

—

909,406,783

Short-Term

Securities

Money

Market

Funds

......................................

4,244,707

—

—

4,244,707

Options

Purchased

Interest

rate

contracts

......................................

—

188,791

—

188,791

Liabilities

Investments

TBA

Sale

Commitments

....................................

—

(410,994,340)

—

(410,994,340)

$

4,244,707

$

523,097,410

$

872,934

$

528,215,051

Derivative

Financial

Instruments

(a)

Assets

Foreign

currency

exchange

contracts

............................

$

—

$

8,159

$

—

$

8,159

Interest

rate

contracts

.......................................

1,439,582

1,073,344

—

2,512,926

Liabilities

Foreign

currency

exchange

contracts

............................

—

(5,139)

—

(5,139)

Interest

rate

contracts

.......................................

(2,191,149)

(4,161,772)

—

(6,352,921)

$

(751,567)

$

(3,085,408)

$

—

$

(3,836,975)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Impact

Mortgage

Fund

34

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

The

Fund

may

hold

assets

and/or

liabilities

in

which

the

fair

value

approximates

the

carrying

amount

or

face

value,

including

accrued

interest,

for

financial

statement

purposes.

As

of

period

end,

reverse

repurchase

agreements

of

$109,101,297

are

categorized

as

Level

2

within

the

disclosure

hierarchy.

BlackRock

Income

Fund

Schedules

of

Investments

35

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

AGL

CLO

11

Ltd.,

Series

2021-11A,

Class

D,

(LIBOR

USD

3

Month

+

3.15%),

5.66%,

04/15/34

(a)(b)

....................

USD

1,000

$

864,898

AGL

CLO

12

Ltd.,

Series

2021-12A,

Class

C,

(LIBOR

USD

3

Month

+

1.85%),

4.56%,

07/20/34

(a)(b)

....................

1,000

895,478

AIG

CLO

LLC

(a)(b)

Series

2018-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.05%),

4.76%,

04/20/32

...

1,000

912,340

Series

2021-2A,

Class

D,

(LIBOR

USD

3

Month

+

3.05%),

5.76%,

07/20/34

...

500

439,863

Ajax

Mortgage

Loan

Trust

(b)

Series

2019-E,

Class

A,

3.00%,

09/25/59

(c)

1,083

1,065,472

Series

2019-E,

Class

B,

4.88%,

09/25/59

(c)

280

273,843

Series

2019-E,

Class

C,

0.00%,

09/25/59

597

535,750

Anchorage

Capital

CLO

18

Ltd.,

Series

2021-

18A,

Class

C,

(LIBOR

USD

3

Month

+

2.25%),

4.76%,

04/15/34

(a)(b)

.........

1,000

914,701

Anchorage

Capital

CLO

Ltd.,

Series

2013-1A,

Class

CR,

(LIBOR

USD

3

Month

+

3.20%),

5.66%,

10/13/30

(a)(b)

...............

1,000

921,835

Anchorage

Capital

Europe

CLO

DAC,

Series

4X,

Class

E,

(EURIBOR

3

Month

+

5.71%),

5.86%,

04/25/34

(a)(d)

...............

EUR

100

76,887

Apidos

CLO

XXIX,

Series

2018-29A,

Class

B,

(LIBOR

USD

3

Month

+

1.90%),

4.68%,

07/25/30

(a)(b)

....................

USD

1,000

914,599

Ares

XXXVII

CLO

Ltd.,

Series

2015-4A,

Class

BR,

(LIBOR

USD

3

Month

+

1.80%),

4.31%,

10/15/30

(a)(b)

....................

250

231,264

Avoca

CLO

XV

DAC,

Series

15X,

Class

ER,

(EURIBOR

3

Month

+

4.13%),

4.13%,

04/15/31

(a)(d)

....................

EUR

260

194,860

Ballyrock

CLO

Ltd.,

Series

2019-2A,

Class

CR,

(LIBOR

USD

3

Month

+

3.15%),

6.13%,

11/20/30

(a)(b)

....................

USD

1,000

913,865

Battalion

CLO

17

Ltd.

(a)(b)

Series

2021-17A,

Class

C,

(LIBOR

USD

3

Month

+

2.10%),

4.81%,

03/09/34

...

1,000

890,942

Series

2021-17A,

Class

D,

(LIBOR

USD

3

Month

+

3.25%),

5.96%,

03/09/34

...

1,000

863,336

Bear

Stearns

Asset-Backed

Securities

I

Trust,

Series

2007-HE5,

Class

1A4,

(LIBOR

USD

1

Month

+

0.30%),

3.38%,

06/25/47

(a)

...

3,300

3,135,824

BlueMountain

CLO

DAC,

Series

2021-1X,

Class

E,

(EURIBOR

3

Month

+

5.41%),

5.41%,

04/15/34

(a)(d)

...............

EUR

100

75,505

Canyon

CLO

Ltd.

(a)(b)

Series

2020-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.05%),

4.56%,

07/15/34

...

USD

1,000

896,196

Series

2020-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.15%),

5.66%,

07/15/34

...

1,000

877,771

Capital

Four

CLO

II

DAC,

Series

2X,

Class

E,

(EURIBOR

3

Month

+

5.91%),

5.91%,

01/15/34

(a)(d)

....................

EUR

100

77,777

CIFC

European

Funding

CLO

III

DAC,

Series

3X,

Class

E,

(EURIBOR

3

Month

+

5.61%),

5.61%,

01/15/34

(a)(d)

...............

100

77,822

CIFC

Funding

Ltd.

(a)(b)

Series

2013-2A,

Class

A3LR,

(LIBOR

USD

3

Month

+

1.95%),

4.69%,

10/18/30

...

USD

500

464,577

Series

2013-4A,

Class

CRR,

(LIBOR

USD

3

Month

+

1.90%),

4.67%,

04/27/31

...

1,000

927,315

Series

2017-1A,

Class

D,

(LIBOR

USD

3

Month

+

3.50%),

6.23%,

04/23/29

...

1,000

916,101

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Series

2019-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.10%),

5.81%,

04/20/32

...

USD

1,250

$

1,127,329

Dryden

40

Senior

Loan

Fund,

Series

2015-40A,

Class

DR,

(LIBOR

USD

3

Month

+

3.10%),

6.01%,

08/15/31

(a)(b)

...............

1,000

889,565

Dryden

XXVI

Senior

Loan

Fund,

Series

2013-

26A,

Class

CR,

(LIBOR

USD

3

Month

+

1.85%),

4.36%,

04/15/29

(a)(b)

.........

1,000

936,558

Eaton

Vance

CLO

Ltd.,

Series

2015-1A,

Class

CR,

(LIBOR

USD

3

Month

+

1.90%),

4.61%,

01/20/30

(a)(b)

....................

763

712,261

Galaxy

XVIII

CLO

Ltd.,

Series

2018-28A,

Class

C,

(LIBOR

USD

3

Month

+

1.95%),

4.46%,

07/15/31

(a)(b)

....................

500

457,246

Generate

CLO

9

Ltd.,

Series

9A,

Class

D,

(LIBOR

USD

3

Month

+

3.35%),

6.06%,

10/20/34

(a)(b)

....................

1,000

858,580

GoldenTree

Loan

Management

US

CLO

5

Ltd.,

Series

2019-5A,

Class

DR,

(LIBOR

USD

3

Month

+

3.15%),

5.86%,

10/20/32

(a)(b)

...

1,000

881,464

Golub

Capital

Partners

CLO

53B

Ltd.,

Series

2021-53A,

Class

C,

(LIBOR

USD

3

Month

+

2.05%),

4.76%,

07/20/34

(a)(b)

.........

1,000

905,313

Greene

King

Finance

plc

(a)

Series

B1,  (Sterling

Overnight

Index

Average

+

1.92%),

4.11%,

12/15/34

..

GBP

100

90,756

Series

B2,  (Sterling

Overnight

Index

Average

+

2.20%),

4.39%,

03/15/36

(d)

.

100

83,741

GT

Loan

Financing

I

Ltd.,

Series

2013-1A,

Class

CR,

(LIBOR

USD

3

Month

+

2.10%),

4.89%,

07/28/31

(a)(b)

...............

USD

1,000

935,000

Harbor

Park

CLO

18-1

Ltd.,

Series

2018-1A,

Class

D,

(LIBOR

USD

3

Month

+

2.90%),

5.61%,

01/20/31

(a)(b)

...............

1,000

907,481

Henley

CLO

IV

DAC,

Series

4X,

Class

E,

(EURIBOR

3

Month

+

5.25%),

5.39%,

04/25/34

(a)(d)

....................

EUR

100

74,623

KKR

CLO

27

Ltd.,

Series

27A,

Class

DR,

(3

Month

CME

Term

SOFR

+

3.25%),

5.58%,

10/15/32

(a)(b)

....................

USD

1,000

873,527

Legacy

Mortgage

Asset

Trust,

Series

2019-

SL2,

Class

A,

3.38%,

02/25/59

(a)(b)

.....

1,510

1,406,508

Morgan

Stanley

ABS

Capital

I,

Inc.

Trust,

Series

2007-HE6,

Class

A2,

(LIBOR

USD

1

Month

+

0.14%),

3.22%,

05/25/37

(a)

....

2,445

2,169,565

Neuberger

Berman

CLO

XVII

Ltd.,

Series

2014-

17A,

Class

CR2,

(LIBOR

USD

3

Month

+

2.00%),

4.76%,

04/22/29

(a)(b)

.........

1,000

928,317

Neuberger

Berman

CLO

XX

Ltd.,

Series

2015-

20A,

Class

DRR,

(LIBOR

USD

3

Month

+

2.95%),

5.46%,

07/15/34

(a)(b)

.........

1,150

1,024,607

Neuberger

Berman

CLO

XXII

Ltd.,

Series

2016-22A,

Class

CR,

(LIBOR

USD

3

Month

+

2.20%),

4.94%,

10/17/30

(a)(b)

........

1,000

927,251

Neuberger

Berman

Loan

Advisers

CLO

31

Ltd.,

Series

2019-31A,

Class

CR,

(LIBOR

USD

3

Month

+

1.95%),

4.66%,

04/20/31

(a)(b)

...

1,000

920,632

Neuberger

Berman

Loan

Advisers

CLO

37

Ltd.,

Series

2020-37A,

Class

CR,

(LIBOR

USD

3

Month

+

1.80%),

4.51%,

07/20/31

(a)(b)

...

1,000

922,262

Neuberger

Berman

Loan

Advisers

Euro

CLO,

Series

2021-1X,

Class

E,

(EURIBOR

3

Month

+

5.52%),

5.52%,

04/17/34

(a)(d)

...

EUR

100

75,924

OCP

CLO

Ltd.,

Series

2014-5A,

Class

CR,

(LIBOR

USD

3

Month

+

2.90%),

5.67%,

04/26/31

(a)(b)

....................

USD

1,000

859,761

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

36

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

OCP

Euro

CLO

DAC,

Series

2017-2X,

Class

F,

(EURIBOR

3

Month

+

6.40%),

6.40%,

01/15/32

(a)(d)

....................

EUR

100

$

69,432

Octagon

Investment

Partners

28

Ltd.,

Series

2016-1A,

Class

C1R,

(LIBOR

USD

3

Month

+

2.25%),

5.03%,

10/24/30

(a)(b)

........

USD

1,000

907,378

Octagon

Investment

Partners

37

Ltd.,

Series

2018-2A,

Class

B,

(LIBOR

USD

3

Month

+

1.75%),

4.53%,

07/25/30

(a)(b)

.........

1,000

908,899

Octagon

Investment

Partners

40

Ltd.,

Series

2019-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.35%),

6.06%,

01/20/35

(a)(b)

.........

1,000

867,950

Octagon

Investment

Partners

41

Ltd.,

Series

2019-2A,

Class

DR,

(LIBOR

USD

3

Month

+

3.20%),

5.71%,

10/15/33

(a)(b)

.........

1,250

1,104,002

OHA

Credit

Funding

2

Ltd.,

Series

2019-2A,

Class

CR,

(LIBOR

USD

3

Month

+

2.20%),

4.93%,

04/21/34

(a)(b)

...............

1,000

910,511

OHA

Credit

Funding

6

Ltd.,

Series

2020-6A,

Class

DR,

(LIBOR

USD

3

Month

+

3.15%),

5.86%,

07/20/34

(a)(b)

...............

1,250

1,134,093

OHA

Credit

Partners

XI

Ltd.,

Series

2015-11A,

Class

DR,

(LIBOR

USD

3

Month

+

2.95%),

5.66%,

01/20/32

(a)(b)

...............

500

445,629

Option

One

Mortgage

Loan

Trust,

Series

2007-

FXD1,

Class

2A1,

5.87%,

01/25/37

(c)

....

857

718,422

Palmer

Square

CLO

Ltd.

(a)(b)

Series

2015-1A,

Class

CR4,

(LIBOR

USD

3

Month

+

2.85%),

5.83%,

05/21/34

...

1,000

884,270

Series

2019-1A,

Class

BR,

(LIBOR

USD

3

Month

+

2.00%),

4.91%,

11/14/34

...

1,000

895,383

Series

2019-1A,

Class

CR,

(LIBOR

USD

3

Month

+

3.05%),

5.96%,

11/14/34

...

1,000

890,151

Series

2021-3A,

Class

D,

(LIBOR

USD

3

Month

+

2.95%),

5.46%,

01/15/35

...

1,000

898,902

Series

2022-1A,

Class

D,

(3

Month

CME

Term

SOFR

+

3.05%),

3.52%,

04/20/35

2,000

1,819,278

Park

Avenue

Institutional

Advisers

CLO

Ltd.,

Series

2019-1A,

Class

C,

(LIBOR

USD

3

Month

+

3.85%),

6.76%,

05/15/32

(a)(b)

...

1,500

1,311,615

Pikes

Peak

CLO

3,

Series

2019-3A,

Class

CRR,

(LIBOR

USD

3

Month

+

2.15%),

4.93%,

10/25/34

(a)(b)

...............

1,000

903,979

Pikes

Peak

CLO

7

(a)(b)

Series

2021-7A,

Class

C,

(LIBOR

USD

3

Month

+

2.20%),

5.20%,

02/25/34

...

1,000

908,303

Series

2021-7A,

Class

D,

(LIBOR

USD

3

Month

+

3.40%),

6.40%,

02/25/34

...

1,000

872,059

PPM

CLO

Ltd.,

Series

2018-1A,

Class

C,

(LIBOR

USD

3

Month

+

2.15%),

4.66%,

07/15/31

(a)(b)

....................

1,000

916,805

Progress

Residential

Trust,

Series

2019-SFR4,

Class

E,

3.44%,

10/17/36

(b)

..........

3,000

2,831,140

Rad

CLO

14

Ltd.,

Series

2021-14A,

Class

D,

(LIBOR

USD

3

Month

+

3.00%),

5.51%,

01/15/35

(a)(b)

....................

1,000

846,055

Recette

CLO

Ltd.,

Series

2015-1A,

Class

DRR,

(LIBOR

USD

3

Month

+

3.25%),

5.96%,

04/20/34

(a)(b)

....................

500

428,573

Regata

XII

Funding

Ltd.,

Series

2019-1A,

Class

DR,

(LIBOR

USD

3

Month

+

3.10%),

5.61%,

10/15/32

(a)(b)

....................

1,000

889,473

Regatta

VII

Funding

Ltd.,

Series

2016-1A,

Class

DR2,

(LIBOR

USD

3

Month

+

3.05%),

6.58%,

06/20/34

(a)(b)

...............

1,500

1,336,129

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

Regatta

XVI

Funding

Ltd.,

Series

2019-2A,

Class

C,

(LIBOR

USD

3

Month

+

2.70%),

5.21%,

01/15/33

(a)(b)

...............

USD

1,000

$

937,391

Regatta

XXIII

Funding

Ltd.,

Series

2021-4A,

Class

D,

(LIBOR

USD

3

Month

+

3.05%),

5.76%,

01/20/35

(a)(b)

...............

1,000

903,298

Riserva

CLO

Ltd.,

Series

2016-3A,

Class

DRR,

(LIBOR

USD

3

Month

+

3.25%),

5.99%,

01/18/34

(a)(b)

....................

1,000

883,906

Rockford

Tower

CLO

Ltd.

(a)(b)

Series

2017-1A,

Class

CR2,

(LIBOR

USD

3

Month

+

2.10%),

4.81%,

04/20/34

...

1,000

900,788

Series

2018-2A,

Class

C,

(LIBOR

USD

3

Month

+

2.20%),

4.91%,

10/20/31

...

500

464,889

Series

2021-1A,

Class

C,

(LIBOR

USD

3

Month

+

2.00%),

4.71%,

07/20/34

...

1,000

897,769

Series

2021-2A,

Class

C,

(LIBOR

USD

3

Month

+

2.10%),

4.81%,

07/20/34

...

1,000

895,366

Series

2021-2A,

Class

D,

(LIBOR

USD

3

Month

+

3.25%),

5.96%,

07/20/34

...

1,000

874,848

Rockford

Tower

Europe

CLO

DAC,

Series

2021-1X,

Class

E,

(EURIBOR

3

Month

+

5.96%),

6.01%,

04/20/34

(a)(d)

.........

EUR

100

77,154

Sound

Point

CLO

XXIX

Ltd.,

Series

2021-1A,

Class

C1,

(LIBOR

USD

3

Month

+

2.30%),

5.08%,

04/25/34

(a)(b)

...............

USD

1,000

907,550

Sound

Point

Euro

CLO

V

Funding

DAC,

Series

5X,

Class

E,

(EURIBOR

3

Month

+

5.84%),

5.99%,

07/25/35

(a)(d)

...............

EUR

200

149,787

Southwick

Park

CLO

LLC,

Series

2019-4A,

Class

CR,

(LIBOR

USD

3

Month

+

1.95%),

4.66%,

07/20/32

(a)(b)

...............

USD

1,000

912,780

Symphony

CLO

XX

Ltd.,

Series

2018-20A,

Class

DR,

(LIBOR

USD

3

Month

+

3.75%),

6.49%,

01/16/32

(a)(b)

...............

1,750

1,564,241

TCW

CLO

Ltd.,

Series

2020-1A,

Class

DRR,

(LIBOR

USD

3

Month

+

3.40%),

6.11%,

04/20/34

(a)(b)

....................

1,250

1,068,591

TICP

CLO

XI

Ltd.

(a)(b)

Series

2018-11A,

Class

C,

(LIBOR

USD

3

Month

+

2.15%),

4.86%,

10/20/31

...

600

560,709

Series

2018-11A,

Class

D,

(LIBOR

USD

3

Month

+

3.05%),

5.76%,

10/20/31

...

1,050

965,250

TICP

CLO

XV

Ltd.,

Series

2020-15A,

Class

C,

(LIBOR

USD

3

Month

+

2.15%),

4.86%,

04/20/33

(a)(b)

....................

1,000

919,507

Webster

Park

CLO

Ltd.,

Series

2015-1A,

Class

BR,

(LIBOR

USD

3

Month

+

1.80%),

4.51%,

07/20/30

(a)(b)

....................

500

454,641

Total

Asset-Backed

Securities

—

4.2%

(Cost:

$82,872,063)

..............................

75,363,988

Shares

Shares

Common

Stocks

Building

Products

—

0.0%

AZEK

Co.,

Inc.

(The)

(e)

...............

234

3,889

Chemicals

—

0.0%

Diversey

Holdings

Ltd.

(e)

..............

18,605

90,420

Element

Solutions,

Inc.

...............

10,175

165,547

255,967

BlackRock

Income

Fund

Schedules

of

Investments

37

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Shares

Shares

Value

Commercial

Services

&

Supplies

—

0.0%

Preston

Holdings

LLC

(e)(f)

..............

1,227

$

150

Construction

&

Engineering

—

0.0%

Mcdermott

International

Ltd.

(e)

..........

48,333

21,750

Electrical

Equipment

—

0.0%

Ardagh

Metal

Packaging

SA,

(Acquired

08/02/21,

cost

$276,327)

(e)(g)

.........

28,101

130,670

Hotels,

Restaurants

&

Leisure

—

0.0%

NEW

Top

YK

(e)(f)

....................

3,743

—

IT

Services

—

0.0%

(e)

Block,

Inc.,

Class

A

.................

648

35,634

Twilio,

Inc.,

Class

A

.................

322

22,263

57,897

Life

Sciences

Tools

&

Services

—

0.0%

Syneos

Health,

Inc.

(e)

................

3,818

180,019

Machinery

—

0.0%

Ameriforge

Group,

Inc.

(e)

..............

283

141

Marine

—

0.0%

Project

Investor

Holdings

LLC,

(Acquired

02/12/19,

cost

$

—

)

(e)(f)(g)

............

1,227

—

Media

—

0.0%

Clear

Channel

Outdoor

Holdings,

Inc.

(e)

....

25,726

35,245

Metals

&

Mining

—

0.0%

Constellium

SE,

Class

A

(e)

.............

16,329

165,576

Oil,

Gas

&

Consumable

Fuels

—

0.1%

Cheniere

Energy,

Inc.

................

574

95,232

Chesapeake

Energy

Corp.

............

1,748

164,679

Energy

Transfer

LP

.................

7,429

81,942

341,853

Professional

Services

—

0.0%

NMG,

Inc.

(e)

.......................

1,905

322,263

Software

—

0.0%

(e)

Avaya

Holdings

Corp.

................

12

19

Informatica,

Inc.,

Class

A

..............

7,823

157,008

157,027

Total

Common

Stocks

—

0.1%

(Cost:

$2,140,192)

..............................

1,672,447

Par

(000)

Par

(000)

Corporate

Bonds

Aerospace

&

Defense

—

0.8%

Bombardier,

Inc.

(b)

7.50%,

03/15/25

.................

USD

513

498,836

7.13%,

06/15/26

.................

2,149

1,970,998

7.88%,

04/15/27

.................

184

169,280

6.00%,

02/15/28

.................

875

732,090

BWX

Technologies,

Inc.

(b)

4.13%,

06/30/28

.................

13

11,354

4.13%,

04/15/29

.................

792

685,104

Maxar

Technologies,

Inc.,

7.75%,

06/15/27

(b)

31

29,136

Rolls-Royce

plc

(b)

3.63%,

10/14/25

.................

499

426,485

5.75%,

10/15/27

.................

1,525

1,324,844

Spirit

AeroSystems,

Inc.

(b)

5.50%,

01/15/25

.................

60

56,700

Security

Par

(000)

Par

(000)

Value

Aerospace

&

Defense

(continued)

7.50%,

04/15/25

.................

USD

24

$

22,614

TransDigm,

Inc.

8.00%,

12/15/25

(b)

................

1,109

1,124,759

6.25%,

03/15/26

(b)

................

5,569

5,401,930

6.38%,

06/15/26

.................

135

127,543

4.63%,

01/15/29

.................

1,135

913,709

Triumph

Group,

Inc.,

8.88%,

06/01/24

(b)

...

169

166,953

13,662,335

Airlines

—

0.5%

Air

Canada,

3.88%,

08/15/26

(b)

.........

744

638,910

Allegiant

Travel

Co.,

7.25%,

08/15/27

(b)

...

69

65,032

American

Airlines,

Inc.

(b)

11.75%,

07/15/25

................

404

421,913

5.50%,

04/20/26

.................

1,757

1,650,331

5.75%,

04/20/29

.................

1,416

1,235,460

Cathay

Pacific

MTN

Financing

HK

Ltd.,

4.88%,

08/17/26

(d)

....................

200

181,000

Delta

Air

Lines,

Inc.

(b)

7.00%,

05/01/25

.................

571

574,684

4.75%,

10/20/28

.................

4

3,352

Hawaiian

Brand

Intellectual

Property

Ltd.,

5.75%,

01/20/26

(b)

...............

599

528,312

International

Consolidated

Airlines

Group

SA,

2.75%,

03/25/25

(d)

...............

EUR

100

81,526

Korean

Air

Lines

Co.

Ltd.,

4.75%,

09/23/25

(d)

USD

200

198,858

Mileage

Plus

Holdings

LLC,

6.50%,

06/20/27

(b)

2,021

1,977,772

Singapore

Airlines

Ltd.,

3.00%,

07/20/26

(d)

..

400

370,340

Spirit

Loyalty

Cayman

Ltd.,

8.00%,

09/20/25

(b)

49

48,825

United

Airlines

Pass-Through

Trust,

Series

2020-1,

Class

B,

4.88%,

01/15/26

.....

40

37,172

United

Airlines,

Inc.

(b)

4.38%,

04/15/26

.................

777

693,473

4.63%,

04/15/29

.................

896

741,386

9,448,346

Auto

Components

—

0.7%

Allison

Transmission,

Inc.,

5.88%,

06/01/29

(b)

65

58,825

Aptiv

plc,

4.15%,

05/01/52

...........

5,200

3,502,036

Clarios

Global

LP

(b)

6.75%,

05/15/25

.................

216

211,513

6.25%,

05/15/26

.................

2,351

2,245,205

8.50%,

05/15/27

.................

5,218

4,980,529

Dealer

Tire

LLC,

8.00%,

02/01/28

(b)

......

148

130,243

Dornoch

Debt

Merger

Sub,

Inc.,

6.63%,

10/15/29

(b)

....................

140

100,947

Faurecia

SE,

3.75%,

06/15/28

(d)

........

EUR

100

74,116

Goodyear

Tire

&

Rubber

Co.

(The),

5.00%,

07/15/29

.....................

USD

241

196,740

Grupo

Antolin-Irausa

SA,

3.38%,

04/30/26

(d)

.

EUR

100

73,504

Icahn

Enterprises

LP

6.25%,

05/15/26

.................

USD

10

9,346

5.25%,

05/15/27

.................

1,233

1,079,504

4.38%,

02/01/29

.................

656

528,001

ZF

Europe

Finance

BV,

2.00%,

02/23/26

(d)

..

EUR

100

81,561

13,272,070

Automobiles

—

0.3%

Ford

Motor

Co.

4.35%,

12/08/26

.................

USD

30

27,531

3.25%,

02/12/32

.................

752

541,688

6.10%,

08/19/32

.................

108

95,213

5.29%,

12/08/46

.................

75

52,875

Hyundai

Capital

America,

2.38%,

10/15/27

(d)

300

250,447

Jaguar

Land

Rover

Automotive

plc,

4.50%,

01/15/26

(d)

....................

EUR

100

76,326

Kia

Corp.,

1.75%,

10/16/26

(d)

..........

USD

1,000

864,450

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

38

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Automobiles

(continued)

Nissan

Motor

Co.

Ltd.,

4.81%,

09/17/30

(b)

..

USD

4,175

$

3,382,494

RCI

Banque

SA,

(EUR

Swap

Annual

5

Year

+

2.85%),

2.63%,

02/18/30

(a)(d)

.........

EUR

200

166,093

Thor

Industries,

Inc.,

4.00%,

10/15/29

(b)

...

USD

16

12,025

TML

Holdings

Pte.

Ltd.,

4.35%,

06/09/26

(d)

.

200

167,600

Winnebago

Industries,

Inc.,

6.25%,

07/15/28

(b)

90

83,250

5,719,992

Banks

—

8.7%

Abu

Dhabi

Commercial

Bank

PJSC

(d)

3.50%,

03/31/27

.................

500

463,125

4.50%,

09/14/27

.................

275

265,925

Arab

National

Bank,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.97%),

3.33%,

10/28/30

(a)(d)

.........

200

185,725

Axis

Bank

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.32%),

4.10%

(a)(d)(h)

...................

300

247,125

Banco

de

Credito

del

Peru

SA,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.45%),

3.25%,

09/30/31

(a)(d)

....

679

573,246

Banco

de

Credito

e

Inversiones

SA,

3.50%,

10/12/27

(d)

....................

1,205

1,086,609

Banco

General

SA,

4.13%,

08/07/27

(d)

....

1,179

1,086,375

Banco

Inbursa

SA

Institucion

De

Banca

Multiple

Grupo

Financiero

Inbursa

(d)

4.13%,

06/06/24

.................

653

631,084

4.38%,

04/11/27

.................

170

157,813

Banco

Internacional

del

Peru

SAA

Interbank,

3.25%,

10/04/26

(d)

...............

1,248

1,121,874

Banco

Nacional

de

Comercio

Exterior

SNC,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.00%),

2.72%,

08/11/31

(a)(b)

...................

810

694,980

Bangkok

Bank

PCL,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.73%),

5.00%

(a)(d)(h)

..............

497

438,540

Bank

Hapoalim

BM,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.16%),

3.26%,

01/21/32

(a)(b)(d)

........

670

549,400

Bank

Leumi

Le-Israel

BM,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.63%),

3.28%,

01/29/31

(a)(b)(d)

......

1,280

1,088,800

Bank

of

America

Corp.

(a)

(SOFR

6

Month

+

1.33%),

3.38%,

04/02/26

6,200

5,856,622

(LIBOR

USD

3

Month

+

1.18%),

3.19%,

07/23/30

....................

850

716,392

(SOFR

6

Month

+

1.83%),

4.57%,

04/27/33

17,895

16,028,311

(SOFR

6

Month

+

2.16%),

5.02%,

07/22/33

15,164

14,066,922

Bank

of

China

Ltd.

(d)

3.13%,

04/17/24

.................

200

195,762

1.00%,

11/02/24

.................

500

462,594

1.40%,

04/28/26

.................

500

448,275

Bank

of

Communications

Co.

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.35%),

3.80%

(a)(d)(h)

...

572

546,260

Bank

of

Communications

Hong

Kong

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.40%),

2.30%,

07/08/31

(a)

(d)

.........................

400

354,916

Bank

of

East

Asia

Ltd.

(The),

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.26%),

5.88%

(a)(d)(h)

.........

327

295,935

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

Barclays

plc

(a)(h)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.41%),

4.38%

......................

USD

390

$

240,357

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.43%),

8.00%

......................

8,115

7,102,248

BBVA

Bancomer

SA,

4.38%,

04/10/24

(d)

...

650

635,497

BDO

Unibank,

Inc.,

2.13%,

01/13/26

(d)

....

400

361,000

China

Construction

Bank

Corp.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.15%),

2.45%,

06/24/30

(a)(d)

....

400

371,936

China

Merchants

Bank

Co.

Ltd.,

(LIBOR

USD

3

Month

+

0.85%),

4.49%,

09/25/23

(a)(d)

...

300

300,396

Chong

Hing

Bank

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.86%),

5.70%

(a)(d)(h)

.............

250

240,281

Citigroup,

Inc.,

4.30%,

11/20/26

........

500

473,094

Credit

Agricole

SA,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.24%),

4.75%

(a)(b)(h)

..............

14,025

9,664,066

DBS

Group

Holdings

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.92%),

3.30%

(a)(d)(h)

.............

500

451,250

Doha

Finance

Ltd.,

2.38%,

03/31/26

(d)

....

200

177,940

Hana

Bank,

3.25%,

03/30/27

(d)

.........

300

276,337

HDFC

Bank

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.93%),

3.70%

(a)(d)(h)

..............

350

285,250

HSBC

Holdings

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.65%),

4.60%

(a)(h)

...............

200

138,698

Industrial

&

Commercial

Bank

of

China

Ltd.,

1.20%,

07/20/25

(d)

...............

500

455,545

ING

Groep

NV,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.86%),

3.88%

(a)(h)

....................

7,402

4,810,190

JPMorgan

Chase

&

Co.

3.63%,

12/01/27

.................

300

271,871

(SOFR

6

Month

+

2.08%),

4.91%,

07/25/33

(a)

...................

18,266

16,844,092

(SOFR

6

Month

+

2.58%),

5.72%,

09/14/33

(a)

...................

19,020

17,986,159

Series

W,

(LIBOR

USD

3

Month

+

1.00%),

3.91%,

05/15/47

(a)

..............

1,000

789,000

Kasikornbank

PCL

(a)(d)

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.34%),

4.00%

(h)

.....................

300

235,875

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.70%),

3.34%,

10/02/31

...............

200

172,100

KB

Kookmin

Card

Co.

Ltd.,

1.50%,

05/13/26

(d)

300

258,744

Kookmin

Bank,

1.75%,

05/04/25

(d)

.......

1,100

1,013,243

MAR

Sukuk

Ltd.,

2.21%,

09/02/25

(d)

......

300

276,225

Mizrahi

Tefahot

Bank

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.25%),

3.08%,

04/07/31

(a)(b)(d)

......

1,297

1,087,859

Nanyang

Commercial

Bank

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.51%),

6.50%

(a)(d)(h)

.........

250

235,516

National

Australia

Bank

Ltd.,

2.33%,

08/21/30

(d)

250

186,147

Norinchukin

Bank

(The)

(d)

4.87%,

09/14/27

.................

400

391,629

5.07%,

09/14/32

.................

400

383,636

BlackRock

Income

Fund

Schedules

of

Investments

39

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

QNB

Finance

Ltd.

(d)

2.63%,

05/12/25

.................

USD

600

$

561,488

2.75%,

02/12/27

.................

1,231

1,108,900

Shinhan

Financial

Group

Co.

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.06%),

2.88%

(a)(d)(h)

...

200

167,250

Shizuoka

Bank

Ltd.

(The),

(LIBOR

USD

3

Month

-

0.50%),

2.28%,

01/25/23

(a)(d)(i)

...

100

98,730

SNB

Funding

Ltd.,

2.75%,

10/02/24

(d)

.....

500

474,937

Sumitomo

Mitsui

Trust

Bank

Ltd.,

4.80%,

09/15/25

(d)

....................

350

344,799

TMBThanachart

Bank

PCL,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.26%),

4.90%

(a)(d)(h)

.............

200

178,475

United

Overseas

Bank

Ltd.,

3.06%,

04/07/25

(d)

700

669,095

Wells

Fargo

&

Co.

(SOFR

6

Month

+

1.51%),

3.53%,

03/24/28

(a)

...................

8,340

7,553,682

(SOFR

6

Month

+

2.10%),

4.90%,

07/25/33

(a)

...................

22,863

21,078,169

5.38%,

11/02/43

.................

500

432,908

(SOFR

6

Month

+

2.13%),

4.61%,

04/25/53

(a)

...................

8,475

6,885,418

Woori

Bank,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.66%),

4.25%

(a)(d)(h)

...................

200

186,850

153,419,492

Beverages

—

0.3%

Anheuser-Busch

InBev

Worldwide,

Inc.

4.60%,

04/15/48

.................

750

621,102

4.44%,

10/06/48

.................

2,225

1,804,973

Coca-Cola

Femsa

SAB

de

CV,

2.75%,

01/22/30

1,172

1,002,060

Embotelladora

Andina

SA,

3.95%,

01/21/50

(b)

1,826

1,358,430

Fomento

Economico

Mexicano

SAB

de

CV,

3.50%,

01/16/50

................

498

341,130

5,127,695

Building

Products

—

0.2%

Advanced

Drainage

Systems,

Inc.

(b)

5.00%,

09/30/27

.................

164

150,821

6.38%,

06/15/30

.................

977

946,566

Camelot

Return

Merger

Sub,

Inc.,

8.75%,

08/01/28

(b)

....................

75

61,815

JELD-WEN,

Inc.,

6.25%,

05/15/25

(b)

.....

73

68,620

Masonite

International

Corp.

(b)

5.38%,

02/01/28

.................

67

59,264

3.50%,

02/15/30

.................

81

61,925

National

Central

Cooling

Co.

PJSC,

2.50%,

10/21/27

(d)

....................

674

572,394

New

Enterprise

Stone

&

Lime

Co.,

Inc.,

5.25%,

07/15/28

(b)

....................

101

83,479

SRM

Escrow

Issuer

LLC,

6.00%,

11/01/28

(b)

1,098

892,389

Standard

Industries,

Inc.

(b)

5.00%,

02/15/27

.................

268

237,156

4.75%,

01/15/28

.................

2

1,690

4.38%,

07/15/30

.................

638

488,070

3.38%,

01/15/31

.................

11

7,736

Summit

Materials

LLC,

5.25%,

01/15/29

(b)

..

89

78,320

3,710,245

Capital

Markets

—

2.5%

AG

TTMT

Escrow

Issuer

LLC,

8.63%,

09/30/27

(b)

....................

88

82,720

Aretec

Escrow

Issuer,

Inc.,

7.50%,

04/01/29

(b)

105

87,877

China

Great

Wall

International

Holdings

III

Ltd.,

3.88%,

08/31/27

(d)

...............

200

160,038

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

CICC

Hong

Kong

Finance

2016

MTN

Ltd.,

1.75%,

08/10/23

(d)

...............

USD

285

$

277,268

Cindai

Capital

Ltd.,

0.00%,

02/08/23

(d)(i)(j)

...

900

882,006

Codere

New

Holdco

SA,

7.50%,

11/30/27

..

EUR

104

56,299

Compass

Group

Diversified

Holdings

LLC,

5.25%,

04/15/29

(b)

...............

USD

30

23,542

Credit

Suisse

Group

AG

(a)(b)

(SOFR

6

Month

+

1.56%),

2.59%,

09/11/25

1,500

1,364,652

(SOFR

6

Month

+

1.73%),

3.09%,

05/14/32

2,610

1,832,318

Deutsche

Bank

AG,

(EURIBOR

Swap

Rate

5

Year

+

3.30%),

4.00%,

06/24/32

(a)(d)

....

EUR

100

83,093

Drawbridge

Special

Opportunities

Fund

LP,

3.88%,

02/15/26

(b)

...............

USD

250

226,922

Dua

Capital

Ltd.,

2.78%,

05/11/31

(d)

......

400

307,236

Huarong

Finance

2017

Co.

Ltd.,

4.75%,

04/27/27

(d)

....................

200

155,725

Huarong

Finance

2019

Co.

Ltd.

(d)

2.50%,

02/24/23

.................

214

209,720

(LIBOR

USD

3

Month

+

1.13%),

4.10%,

02/24/23

(a)

...................

200

196,750

3.75%,

05/29/24

.................

200

181,480

Huarong

Finance

Co.

Ltd.

(d)

3.88%,

11/13/29

.................

800

546,900

3.38%,

02/24/30

.................

758

492,368

Morgan

Stanley

(a)

(SOFR

6

Month

+

0.88%),

1.59%,

05/04/27

4,373

3,778,647

(SOFR

6

Month

+

2.08%),

4.89%,

07/20/33

25,075

23,233,557

MSCI,

Inc.

(b)

3.63%,

09/01/30

.................

922

758,619

3.88%,

02/15/31

.................

40

33,678

OWL

Rock

Core

Income

Corp.

5.50%,

03/21/25

.................

126

118,541

7.75%,

09/16/27

(b)

................

228

224,538

Sherwood

Financing

plc,

4.50%,

11/15/26

(d)

.

EUR

100

74,427

Sun

Hung

Kai

&

Co.

BVI

Ltd.,

5.75%,

11/15/24

(d)

....................

USD

300

284,963

SURA

Asset

Management

SA

(d)

4.88%,

04/17/24

.................

400

388,700

4.88%,

04/17/24

.................

1,318

1,280,767

Temasek

Financial

I

Ltd.,

2.38%,

08/02/41

(d)

.

1,400

1,005,550

UBS

Group

AG,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.55%),

4.49%,

05/12/26

(a)(b)

..............

5,085

4,900,890

Xi

Yang

Overseas

Ltd.,

4.30%,

06/05/24

(d)

..

200

197,162

43,446,953

Chemicals

—

1.0%

Alpek

SAB

de

CV,

3.25%,

02/25/31

(d)

.....

708

521,619

Ashland

LLC,

3.38%,

09/01/31

(b)

........

155

119,802

Avient

Corp.,

7.13%,

08/01/30

(b)

........

863

796,489

Axalta

Coating

Systems

LLC

(b)

4.75%,

06/15/27

.................

920

819,570

3.38%,

02/15/29

.................

939

736,129

Bluestar

Finance

Holdings

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

3

Year

+

5.63%),

3.10%

(a)(d)(h)

.........

500

472,500

Braskem

Netherlands

Finance

BV

(d)

4.50%,

01/10/28

.................

267

225,268

5.88%,

01/31/50

.................

529

369,506

Celanese

US

Holdings

LLC,

6.17%,

07/15/27

100

94,640

Chemours

Co.

(The),

5.75%,

11/15/28

(b)

...

41

33,535

CNAC

HK

Finbridge

Co.

Ltd.

(d)

2.00%,

09/22/25

.................

400

360,648

3.88%,

06/19/29

.................

500

436,735

Diamond

BC

BV,

4.63%,

10/01/29

(b)

......

1,194

830,809

Element

Solutions,

Inc.,

3.88%,

09/01/28

(b)

.

2,700

2,174,040

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

40

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Chemicals

(continued)

Equate

Petrochemical

BV,

2.63%,

04/28/28

(b)

USD

1,323

$

1,116,116

EverArc

Escrow

SARL,

5.00%,

10/30/29

(b)

..

875

706,339

Gates

Global

LLC,

6.25%,

01/15/26

(b)

.....

791

727,720

GC

Treasury

Center

Co.

Ltd.,

4.40%,

03/30/32

(d)

....................

600

514,557

GCP

Applied

Technologies,

Inc.,

5.50%,

04/15/26

(b)

....................

128

129,760

Herens

Holdco

SARL,

4.75%,

05/15/28

(b)

..

200

160,000

Illuminate

Buyer

LLC,

9.00%,

07/01/28

(b)

...

107

88,810

Kobe

U.S.

Midco

2,

Inc.,

9.25%,

11/01/26

(a)(b)

295

233,050

LG

Chem

Ltd.,

2.38%,

07/07/31

(d)

.......

700

545,097

Minerals

Technologies,

Inc.,

5.00%,

07/01/28

(b)

633

550,917

NOVA

Chemicals

Corp.,

4.88%,

06/01/24

(b)

.

127

119,332

Orbia

Advance

Corp.

SAB

de

CV,

5.50%,

01/15/48

(d)

....................

1,147

829,281

Pearl

Holding

II

Ltd.,

6.00%,

(6.00%

Cash

or

14.00%

PIK),

(a)(d)(h)(k)

..............

477

13,293

Pearl

Holding

III

Ltd.,

9.00%,

10/22/25

(d)

...

380

135,850

SABIC

Capital

I

BV,

2.15%,

09/14/30

(d)

....

200

160,037

SCIL

IV

LLC,

5.38%,

11/01/26

(b)

........

512

395,520

Scotts

Miracle-Gro

Co.

(The)

4.00%,

04/01/31

.................

67

47,168

4.38%,

02/01/32

.................

29

20,625

Sociedad

Quimica

y

Minera

de

Chile

SA,

4.25%,

05/07/29

(d)

...............

824

760,552

WR

Grace

Holdings

LLC,

5.63%,

08/15/29

(b)

2,906

2,179,500

17,424,814

Commercial

Services

&

Supplies

—

0.7%

ADT

Security

Corp.

(The)

(b)

4.13%,

08/01/29

.................

10

8,300

4.88%,

07/15/32

.................

15

12,097

Allied

Universal

Holdco

LLC

(b)

6.63%,

07/15/26

.................

1,203

1,072,174

9.75%,

07/15/27

.................

1,789

1,470,524

4.63%,

06/01/28

.................

2,218

1,674,590

6.00%,

06/01/29

.................

1,047

675,706

APi

Group

DE,

Inc.,

4.13%,

07/15/29

(b)

....

145

114,913

APX

Group,

Inc.

(b)

6.75%,

02/15/27

.................

75

70,063

5.75%,

07/15/29

.................

684

540,753

Aramark

Services,

Inc.

(b)

6.38%,

05/01/25

.................

568

556,640

5.00%,

02/01/28

.................

869

774,027

Brink's

Co.

(The),

5.50%,

07/15/25

(b)

.....

56

53,004

Clean

Harbors,

Inc.,

4.88%,

07/15/27

(b)

....

215

195,983

Covanta

Holding

Corp.

4.88%,

12/01/29

(b)

................

496

400,897

5.00%,

09/01/30

.................

21

16,459

Garda

World

Security

Corp.,

4.63%,

02/15/27

(b)

49

42,017

GFL

Environmental,

Inc.

(b)

3.75%,

08/01/25

.................

103

94,245

5.13%,

12/15/26

.................

462

430,235

4.00%,

08/01/28

.................

1,714

1,428,585

4.75%,

06/15/29

.................

118

99,415

4.38%,

08/15/29

.................

127

105,890

GLP

China

Holdings

Ltd.,

4.97%,

02/26/24

(d)

300

273,000

IAA,

Inc.,

5.50%,

06/15/27

(b)

..........

99

90,337

Intrum

AB,

4.88%,

08/15/25

(d)

.........

EUR

107

92,401

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(b)

....................

USD

102

87,346

Madison

IAQ

LLC,

5.88%,

06/30/29

(b)

.....

81

56,421

Nielsen

Finance

LLC,

5.63%,

10/01/28

(b)

...

270

267,982

NongHyup

Bank,

4.00%,

01/06/26

(d)

.....

250

242,228

Prime

Security

Services

Borrower

LLC

(b)

5.25%,

04/15/24

.................

123

118,695

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

6.25%,

01/15/28

.................

USD

462

$

394,258

Stericycle,

Inc.,

3.88%,

01/15/29

(b)

.......

26

21,531

Waste

Pro

USA,

Inc.,

5.50%,

02/15/26

(b)

...

1,150

1,010,309

12,491,025

Communications

Equipment

—

0.2%

Avaya,

Inc.,

6.13%,

09/15/28

(b)

.........

188

93,530

Ciena

Corp.,

4.00%,

01/31/30

(b)

........

77

64,295

CommScope

Technologies

LLC,

6.00%,

06/15/25

(b)

....................

1,418

1,259,822

CommScope,

Inc.

(b)

8.25%,

03/01/27

.................

32

26,440

4.75%,

09/01/29

.................

907

739,804

Nokia

OYJ

4.38%,

06/12/27

.................

11

9,914

6.63%,

05/15/39

.................

79

73,239

Viasat,

Inc.

(b)

5.63%,

04/15/27

.................

50

41,598

6.50%,

07/15/28

.................

212

140,980

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

(b)

...

459

367,237

Xiaomi

Best

Time

International

Ltd.,

4.10%,

07/14/51

(d)

....................

200

113,544

2,930,403

Construction

&

Engineering

—

0.1%

Arcosa,

Inc.,

4.38%,

04/15/29

(b)

........

486

413,100

Dycom

Industries,

Inc.,

4.50%,

04/15/29

(b)

..

97

81,739

GMR

Hyderabad

International

Airport

Ltd.,

4.25%,

10/27/27

(d)

...............

200

162,537

Hongkong

International

Qingdao

Co.

Ltd.,

3.99%,

04/27/23

(d)

...............

200

197,663

MasTec,

Inc.,

4.50%,

08/15/28

(b)

........

184

160,606

1,015,645

Construction

Materials

—

0.1%

Inversiones

CMPC

SA

4.75%,

09/15/24

(d)

................

600

582,863

3.85%,

01/13/30

(d)

................

593

478,588

3.00%,

04/06/31

(b)

................

525

388,434

1,449,885

Consumer

Finance

—

0.6%

Ally

Financial,

Inc.,

8.00%,

11/01/31

.....

400

419,343

American

Express

Co.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.85%),

3.55%

(a)(h)

..............

276

212,707

BOC

Aviation

USA

Corp.,

1.63%,

04/29/24

(d)

1,200

1,131,864

CCBL

Cayman

1

Corp.

Ltd.,

3.50%,

05/16/24

(d)

800

779,768

Ford

Motor

Credit

Co.

LLC

4.69%,

06/09/25

.................

2,385

2,213,269

3.38%,

11/13/25

.................

200

176,701

4.39%,

01/08/26

.................

700

633,575

4.95%,

05/28/27

.................

200

178,556

3.82%,

11/02/27

.................

200

168,000

3.63%,

06/17/31

.................

900

668,655

Global

Aircraft

Leasing

Co.

Ltd.,

6.50%,

(6.50%

Cash

or

7.25%

PIK),

09/15/24

(b)(k)

......

139

104,065

ICBCIL

Finance

Co.

Ltd.

(d)

3.13%,

11/15/22

.................

800

797,400

(LIBOR

USD

3

Month

+

1.05%),

4.03%,

11/20/24

(a)

...................

700

694,881

Navient

Corp.

7.25%,

09/25/23

.................

42

41,837

6.13%,

03/25/24

.................

523

509,271

5.88%,

10/25/24

.................

13

12,319

OneMain

Finance

Corp.

6.88%,

03/15/25

.................

716

672,933

7.13%,

03/15/26

.................

160

144,224

BlackRock

Income

Fund

Schedules

of

Investments

41

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Consumer

Finance

(continued)

5.38%,

11/15/29

.................

USD

36

$

27,900

4.00%,

09/15/30

.................

709

497,512

SLM

Corp.,

3.13%,

11/02/26

..........

126

104,299

VistaJet

Malta

Finance

plc,

6.38%,

02/01/30

(b)

120

98,100

10,287,179

Containers

&

Packaging

—

0.5%

ARD

Finance

SA,

6.50%,

06/30/27

(b)

.....

881

603,235

Ardagh

Metal

Packaging

Finance

USA

LLC

(b)

6.00%,

06/15/27

.................

605

569,731

3.25%,

09/01/28

.................

969

790,665

4.00%,

09/01/29

.................

2,507

1,836,009

Ardagh

Packaging

Finance

plc,

5.25%,

08/15/27

(b)

....................

200

125,146

Ball

Corp.

2.88%,

08/15/30

.................

40

30,698

3.13%,

09/15/31

.................

523

394,211

Clydesdale

Acquisition

Holdings,

Inc.

(b)

6.63%,

04/15/29

.................

882

802,567

8.75%,

04/15/30

.................

814

673,203

Crown

Americas

LLC,

4.75%,

02/01/26

...

75

69,854

Graphic

Packaging

International

LLC

(b)

4.75%,

07/15/27

.................

23

21,057

3.50%,

03/01/29

.................

113

92,956

LABL,

Inc.,

5.88%,

11/01/28

(b)

.........

527

426,817

Mauser

Packaging

Solutions

Holding

Co.,

5.50%,

04/15/24

(b)

...............

108

102,600

Sealed

Air

Corp.,

4.00%,

12/01/27

(b)

.....

77

66,632

Silgan

Holdings,

Inc.,

4.13%,

02/01/28

....

36

31,932

Trivium

Packaging

Finance

BV

(b)(c)

5.50%,

08/15/26

.................

942

842,496

8.50%,

08/15/27

.................

1,742

1,537,859

9,017,668

Distributors

—

0.0%

(b)

American

Builders

&

Contractors

Supply

Co.,

Inc.

4.00%,

01/15/28

.................

2

1,750

3.88%,

11/15/29

.................

58

45,432

BCPE

Empire

Holdings,

Inc.,

7.63%,

05/01/27

104

90,180

Resideo

Funding,

Inc.,

4.00%,

09/01/29

...

21

16,925

154,287

Diversified

Consumer

Services

—

0.1%

Graham

Holdings

Co.,

5.75%,

06/01/26

(b)

..

48

46,545

Metis

Merger

Sub

LLC,

6.50%,

05/15/29

(b)

..

78

60,840

Service

Corp.

International,

4.00%,

05/15/31

325

261,362

Sotheby's

(b)

7.38%,

10/15/27

.................

1,668

1,532,041

5.88%,

06/01/29

.................

608

502,281

2,403,069

Diversified

Financial

Services

—

0.6%

China

Cinda

2020

I

Management

Ltd.

(d)

3.25%,

01/28/27

.................

600

521,982

3.00%,

01/20/31

.................

271

198,050

CITIC

Securities

Finance

MTN

Co.

Ltd.,

1.75%,

06/03/23

(d)

....................

200

195,860

Jefferies

Finance

LLC,

5.00%,

08/15/28

(b)

..

931

686,613

JIC

Zhixin

Ltd.,

1.50%,

08/27/25

(d)

.......

700

630,315

MPH

Acquisition

Holdings

LLC,

5.50%,

09/01/28

(b)

....................

87

71,813

ORIX

Corp.,

5.00%,

09/13/27

.........

800

777,278

Petronas

Capital

Ltd.

(d)

3.50%,

03/18/25

.................

500

486,355

2.48%,

01/28/32

.................

1,150

934,030

REC

Ltd.,

5.25%,

11/13/23

(d)

..........

800

796,900

Security

Par

(000)

Par

(000)

Value

Diversified

Financial

Services

(continued)

Sabre

GLBL,

Inc.

(b)

9.25%,

04/15/25

.................

USD

87

$

83,295

7.38%,

09/01/25

.................

646

578,577

Shift4

Payments

LLC,

4.63%,

11/01/26

(b)

...

925

843,484

Verscend

Escrow

Corp.,

9.75%,

08/15/26

(b)

.

2,841

2,741,565

Vertex

Capital

Investment

Ltd.,

4.75%,

04/03/24

(d)

....................

200

196,850

9,742,967

Diversified

Telecommunication

Services

—

2.4%

Altice

France

Holding

SA,

10.50%,

05/15/27

(b)

3,232

2,531,482

Altice

France

SA

2.50%,

01/15/25

(d)

................

EUR

100

86,753

8.13%,

02/01/27

(b)

................

USD

360

321,750

5.50%,

01/15/28

(b)

................

296

234,399

5.50%,

10/15/29

(b)

................

263

197,877

CCO

Holdings

LLC

5.13%,

05/01/27

(b)

................

59

53,247

5.38%,

06/01/29

(b)

................

258

225,833

6.38%,

09/01/29

(b)

................

445

408,554

4.75%,

03/01/30

(b)

................

4,450

3,610,063

4.75%,

02/01/32

(b)

................

331

257,776

4.50%,

05/01/32

.................

42

32,032

4.50%,

06/01/33

(b)

................

197

145,538

4.25%,

01/15/34

(b)

................

982

702,896

Cellnex

Telecom

SA,

0.75%,

11/20/31

(d)(i)

...

EUR

200

127,689

Consolidated

Communications,

Inc.,

6.50%,

10/01/28

(b)

....................

USD

366

273,585

Frontier

Communications

Holdings

LLC

(b)

5.88%,

10/15/27

.................

9

8,066

5.00%,

05/01/28

.................

1,945

1,669,199

6.75%,

05/01/29

.................

198

163,350

6.00%,

01/15/30

.................

94

73,849

8.75%,

05/15/30

.................

917

917,587

HKT

Capital

No.

2

Ltd.,

3.63%,

04/02/25

(d)

..

500

479,625

Iliad

Holding

SASU

(b)

6.50%,

10/15/26

.................

1,085

948,724

7.00%,

10/15/28

.................

1,229

1,052,909

Level

3

Financing,

Inc.

(b)

3.40%,

03/01/27

.................

32

26,800

4.63%,

09/15/27

.................

88

72,827

4.25%,

07/01/28

.................

4

3,120

3.63%,

01/15/29

.................

20

14,808

3.75%,

07/15/29

.................

1,558

1,141,235

Lorca

Telecom

Bondco

SA,

4.00%,

09/18/27

(d)

EUR

100

85,121

Lumen

Technologies,

Inc.

Series

W,

6.75%,

12/01/23

..........

USD

58

59,134

Series

Y,

7.50%,

04/01/24

..........

25

25,750

5.13%,

12/15/26

(b)

................

820

705,536

4.00%,

02/15/27

(b)

................

791

664,265

4.50%,

01/15/29

(b)

................

1,736

1,219,540

Network

i2i

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.27%),

5.65%

(a)(d)(h)

...................

329

302,330

Ooredoo

International

Finance

Ltd.,

3.75%,

06/22/26

(d)

....................

1,139

1,075,501

RCS

&

RDS

SA,

2.50%,

02/05/25

(d)

......

EUR

100

85,711

Sprint

Capital

Corp.

6.88%,

11/15/28

.................

USD

646

663,765

8.75%,

03/15/32

.................

2,264

2,623,410

Switch

Ltd.

(b)

3.75%,

09/15/28

.................

183

181,856

4.13%,

06/15/29

.................

260

257,513

Telecom

Italia

Capital

SA,

6.38%,

11/15/33

.

773

600,953

Telecom

Italia

SpA,

2.75%,

04/15/25

(d)

....

EUR

100

90,161

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

42

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Diversified

Telecommunication

Services

(continued)

Tower

Bersama

Infrastructure

Tbk.

PT,

2.75%,

01/20/26

(d)

....................

USD

200

$

171,750

Verizon

Communications,

Inc.

2.10%,

03/22/28

.................

7,289

6,153,471

3.88%,

02/08/29

.................

325

296,686

4.50%,

08/10/33

.................

500

450,338

2.99%,

10/30/56

.................

10,751

6,390,631

Virgin

Media

Secured

Finance

plc,

4.50%,

08/15/30

(b)

....................

826

644,652

Zayo

Group

Holdings,

Inc.

(b)

4.00%,

03/01/27

.................

3,160

2,535,742

6.13%,

03/01/28

.................

3,000

2,104,731

43,170,120

Electric

Utilities

—

0.8%

AES

Panama

Generation

Holdings

SRL,

4.38%,

05/31/30

(b)

...............

644

507,150

China

Huadian

Overseas

Development

Management

Co.

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.78%),

4.00%

(a)(d)(h)

.............

400

388,000

China

Huaneng

Group

Hong

Kong

Treasury

Management

Holding

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.65%),

3.08%

(a)(d)(h)

.........

400

372,000

Clean

Renewable

Power

Mauritius

Pte.

Ltd.,

4.25%,

03/25/27

(d)

...............

358

280,008

CLP

Power

HK

Finance

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.04%),

3.55%

(a)(d)(h)

.........

400

375,325

CLP

Power

Hong

Kong

Financing

Ltd.,

2.13%,

06/30/30

(d)

....................

400

321,450

Edison

International,

Series

B,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.90%),

5.00%

(a)(h)

..........

120

94,800

FirstEnergy

Corp.,

Series

B,

2.25%,

09/01/30

39

30,004

FirstEnergy

Transmission

LLC

(b)

5.45%,

07/15/44

.................

1,336

1,208,213

4.55%,

04/01/49

.................

158

123,411

Interchile

SA,

4.50%,

06/30/56

(b)

........

590

427,676

Interconexion

Electrica

SA

ESP,

3.83%,

11/26/33

(d)

....................

709

538,840

Korea

Western

Power

Co.

Ltd.,

4.13%,

06/28/25

(d)

....................

450

436,099

Minejesa

Capital

BV,

4.63%,

08/10/30

(d)

...

400

327,000

Mong

Duong

Finance

Holdings

BV,

5.13%,

05/07/29

(d)

....................

358

277,897

NextEra

Energy

Operating

Partners

LP

(b)

4.25%,

07/15/24

.................

124

118,746

4.25%,

09/15/24

.................

2

1,910

NRG

Energy,

Inc.

5.75%,

01/15/28

.................

25

23,072

5.25%,

06/15/29

(b)

................

14

12,250

3.63%,

02/15/31

(b)

................

18

14,040

3.88%,

02/15/32

(b)

................

423

329,959

Pacific

Gas

&

Electric

Co.,

4.20%,

06/01/41

.

4,040

2,770,806

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(b)

....................

664

575,655

SPIC

MTN

Co.

Ltd.,

1.63%,

07/27/25

(d)

....

400

362,048

Star

Energy

Geothermal

Darajat

II

4.85%,

10/14/38

(d)

................

400

298,500

4.85%,

10/14/38

(b)

................

1,191

888,784

Star

Energy

Geothermal

Wayang

Windu

Ltd.,

6.75%,

04/24/33

(d)

...............

206

186,046

State

Grid

Europe

Development

2014

plc

3.13%,

04/07/25

(d)

................

1,260

1,207,861

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

State

Grid

Overseas

Investment

BVI

Ltd.,

1.13%,

09/08/26

(d)

...............

USD

1,100

$

959,552

Texas

Competitive

Electric

Holdings

Co.

LLC,

5.03%,

12/31/49

(a)(e)(f)(l)

............

815

—

Three

Gorges

Finance

I

Cayman

Islands

Ltd.,

3.15%,

06/02/26

(d)

...............

500

474,630

Vistra

Operations

Co.

LLC

(b)

5.50%,

09/01/26

.................

8

7,420

5.00%,

07/31/27

.................

8

7,226

4.38%,

05/01/29

.................

9

7,486

13,953,864

Electrical

Equipment

—

0.2%

(b)

Sensata

Technologies

BV

5.63%,

11/01/24

.................

562

558,841

5.00%,

10/01/25

.................

42

40,071

4.00%,

04/15/29

.................

1,462

1,209,790

5.88%,

09/01/30

.................

200

187,132

Vertiv

Group

Corp.,

4.13%,

11/15/28

.....

1,220

982,100

2,977,934

Electronic

Equipment,

Instruments

&

Components

—

0.1%

CDW

LLC

3.28%,

12/01/28

.................

20

16,691

3.25%,

02/15/29

.................

26

21,114

Coherent

Corp.,

5.00%,

12/15/29

(b)

......

1,118

924,810

Foxconn

Far

East

Ltd.,

2.50%,

10/28/30

(d)

..

300

239,962

Sensata

Technologies,

Inc.,

4.38%,

02/15/30

(b)

67

55,979

Zhen

Ding

Technology

Holding

Ltd.,

0.00%,

06/30/25

(d)(i)(j)

..................

400

384,000

1,642,556

Energy

Equipment

&

Services

—

0.2%

Archrock

Partners

LP

(b)

6.88%,

04/01/27

.................

151

135,233

6.25%,

04/01/28

.................

1,307

1,148,846

Nabors

Industries

Ltd.

(b)

7.25%,

01/15/26

.................

931

810,081

7.50%,

01/15/28

.................

219

178,770

Nabors

Industries,

Inc.,

5.75%,

02/01/25

...

71

64,276

Transocean,

Inc.,

11.50%,

01/30/27

(b)

.....

104

96,194

USA

Compression

Partners

LP

6.88%,

04/01/26

.................

918

844,560

6.88%,

09/01/27

.................

192

174,494

Vallourec

SA,

8.50%,

06/30/26

(d)

........

EUR

35

31,982

Weatherford

International

Ltd.

(b)

11.00%,

12/01/24

................

USD

10

10,175

6.50%,

09/15/28

.................

107

96,300

8.63%,

04/30/30

.................

96

83,601

3,674,512

Entertainment

—

0.2%

AMC

Entertainment

Holdings,

Inc.,

7.50%,

02/15/29

(b)

....................

28

21,630

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

(b)

....................

1,152

858,240

Live

Nation

Entertainment,

Inc.

(b)

4.88%,

11/01/24

.................

58

56,106

6.50%,

05/15/27

.................

1,107

1,065,211

4.75%,

10/15/27

.................

131

113,732

3.75%,

01/15/28

.................

982

832,245

Netflix,

Inc.,

4.63%,

05/15/29

..........

EUR

100

91,416

Playtika

Holding

Corp.,

4.25%,

03/15/29

(b)

..

USD

723

578,212

WMG

Acquisition

Corp.,

3.88%,

07/15/30

(b)

.

26

21,301

3,638,093

BlackRock

Income

Fund

Schedules

of

Investments

43

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Equity

Real

Estate

Investment

Trusts

(REITs)

—

2.0%

American

Tower

Corp.

3.13%,

01/15/27

.................

USD

1,000

$

898,234

3.65%,

03/15/27

.................

3,833

3,505,984

2.95%,

01/15/51

.................

6,233

3,741,844

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(b)

....................

133

109,051

Crown

Castle,

Inc.

2.90%,

03/15/27

.................

3,386

3,005,517

3.80%,

02/15/28

.................

6,683

6,046,893

CTR

Partnership

LP,

3.88%,

06/30/28

(b)

...

24

19,740

Equinix,

Inc.,

1.80%,

07/15/27

.........

7,864

6,571,675

Global

Net

Lease,

Inc.,

3.75%,

12/15/27

(b)

..

89

69,422

GLP

Capital

LP,

3.25%,

01/15/32

.......

1,570

1,180,202

HAT

Holdings

I

LLC,

3.38%,

06/15/26

(b)

...

114

91,485

Iron

Mountain

Information

Management

Services,

Inc.,

5.00%,

07/15/32

(b)

......

844

653,334

Link

Finance

Cayman

2009

Ltd.

(The),

2.88%,

07/21/26

(d)

....................

300

278,588

MPT

Operating

Partnership

LP

5.00%,

10/15/27

.................

85

73,461

4.63%,

08/01/29

.................

296

238,153

3.50%,

03/15/31

.................

2,061

1,434,971

RHP

Hotel

Properties

LP

4.75%,

10/15/27

.................

905

787,350

4.50%,

02/15/29

(b)

................

113

93,758

RLJ

Lodging

Trust

LP,

4.00%,

09/15/29

(b)

..

125

97,921

SBA

Communications

Corp.

3.88%,

02/15/27

.................

1,059

939,238

3.13%,

02/01/29

.................

209

168,092

Uniti

Group

LP,

4.75%,

04/15/28

(b)

.......

50

39,499

VICI

Properties

LP

3.50%,

02/15/25

(b)

................

38

35,126

4.63%,

06/15/25

(b)

................

16

15,056

4.50%,

09/01/26

(b)

................

3

2,740

4.25%,

12/01/26

(b)

................

6

5,416

4.50%,

01/15/28

(b)

................

37

32,826

3.88%,

02/15/29

(b)

................

19

15,939

4.63%,

12/01/29

(b)

................

74

64,198

4.13%,

08/15/30

(b)

................

340

283,975

5.13%,

05/15/32

.................

5,900

5,229,758

35,729,446

Food

&

Staples

Retailing

—

0.2%

Albertsons

Cos.,

Inc.

(b)

3.25%,

03/15/26

.................

928

815,097

4.88%,

02/15/30

.................

496

419,621

Bellis

Acquisition

Co.

plc,

3.25%,

02/16/26

(d)

GBP

100

84,022

Casino

Guichard

Perrachon

SA,

5.25%,

04/15/27

(d)

....................

EUR

100

47,288

CK

Hutchison

International

20

Ltd.,

2.50%,

05/08/30

(d)

....................

USD

1,800

1,492,344

Performance

Food

Group,

Inc.,

4.25%,

08/01/29

(b)

....................

657

547,018

Quatrim

SASU,

5.88%,

01/15/24

(d)

......

EUR

100

91,407

US

Foods,

Inc.

(b)

6.25%,

04/15/25

.................

USD

143

140,469

4.75%,

02/15/29

.................

698

597,488

4.63%,

06/01/30

.................

14

11,585

4,246,339

Security

Par

(000)

Par

(000)

Value

Food

Products

—

0.5%

China

Mengniu

Dairy

Co.

Ltd.,

1.88%,

06/17/25

(d)

....................

USD

400

$

363,580

China

Modern

Dairy

Holdings

Ltd.,

2.13%,

07/14/26

(d)

....................

750

628,807

Chobani

LLC

(b)

7.50%,

04/15/25

.................

2,473

2,262,350

4.63%,

11/15/28

.................

1,310

1,114,207

Darling

Ingredients,

Inc.,

6.00%,

06/15/30

(b)

.

472

449,198

Gruma

SAB

de

CV,

4.88%,

12/01/24

(d)

....

760

745,892

Indofood

CBP

Sukses

Makmur

Tbk.

PT,

3.40%,

06/09/31

(d)

....................

647

477,234

JBS

USA

LUX

SA,

3.75%,

12/01/31

(b)

.....

238

190,529

Knight

Castle

Investments

Ltd.,

7.99%,

01/23/23

(d)(e)(l)

..................

1,400

980,000

Kraft

Heinz

Foods

Co.

6.50%,

02/09/40

.................

145

145,709

4.88%,

10/01/49

.................

12

9,890

5.50%,

06/01/50

.................

117

105,251

Lamb

Weston

Holdings,

Inc.

(b)

4.88%,

05/15/28

.................

75

68,035

4.13%,

01/31/30

.................

35

29,618

4.38%,

01/31/32

.................

1,246

1,029,508

Pilgrim's

Pride

Corp.,

3.50%,

03/01/32

(b)

...

78

58,802

Post

Holdings,

Inc.,

5.50%,

12/15/29

(b)

....

18

15,561

Simmons

Foods,

Inc.,

4.63%,

03/01/29

(b)

..

683

558,352

Tingyi

Cayman

Islands

Holding

Corp.,

1.63%,

09/24/25

(d)

....................

300

267,018

9,499,541

Gas

Utilities

—

0.0%

Suburban

Propane

Partners

LP,

5.00%,

06/01/31

(b)

....................

109

89,467

Health

Care

Equipment

&

Supplies

—

0.2%

Avantor

Funding,

Inc.

(b)

4.63%,

07/15/28

.................

130

115,693

3.88%,

11/01/29

.................

1,589

1,290,586

Embecta

Corp.,

6.75%,

02/15/30

(b)

......

112

103,400

Garden

Spinco

Corp.,

8.63%,

07/20/30

(b)

..

72

74,385

Hologic,

Inc.,

3.25%,

02/15/29

(b)

........

10

8,178

Medline

Borrower

LP

(b)

3.88%,

04/01/29

.................

353

282,997

5.25%,

10/01/29

.................

2,388

1,802,940

Teleflex,

Inc.,

4.63%,

11/15/27

.........

8

7,207

3,685,386

Health

Care

Providers

&

Services

—

1.2%

Acadia

Healthcare

Co.,

Inc.

(b)

5.50%,

07/01/28

.................

55

50,189

5.00%,

04/15/29

.................

26

23,026

AdaptHealth

LLC

(b)

6.13%,

08/01/28

.................

35

31,350

5.13%,

03/01/30

.................

29

23,911

AHP

Health

Partners,

Inc.,

5.75%,

07/15/29

(b)

112

86,800

Cano

Health

LLC,

6.25%,

10/01/28

(b)

.....

139

131,301

Centene

Corp.

4.63%,

12/15/29

.................

53

47,626

3.00%,

10/15/30

.................

2,939

2,327,511

2.50%,

03/01/31

.................

696

524,632

2.63%,

08/01/31

.................

610

459,741

Community

Health

Systems,

Inc.

(b)

8.00%,

03/15/26

.................

1,000

865,787

5.63%,

03/15/27

.................

325

250,153

5.25%,

05/15/30

.................

78

54,307

Encompass

Health

Corp.

4.50%,

02/01/28

.................

15

12,847

4.75%,

02/01/30

.................

217

178,521

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

44

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

4.63%,

04/01/31

.................

USD

1,303

$

1,029,706

HCA,

Inc.,

3.50%,

07/15/51

...........

11,531

7,139,643

HealthEquity,

Inc.,

4.50%,

10/01/29

(b)

.....

1,485

1,254,439

Legacy

LifePoint

Health

LLC

(b)

6.75%,

04/15/25

.................

100

94,621

4.38%,

02/15/27

.................

53

43,796

ModivCare,

Inc.,

5.88%,

11/15/25

(b)

......

113

104,289

Molina

Healthcare,

Inc.

(b)

4.38%,

06/15/28

.................

69

62,273

3.88%,

11/15/30

.................

49

41,124

3.88%,

05/15/32

.................

1,012

828,956

Option

Care

Health,

Inc.,

4.38%,

10/31/29

(b)

.

647

546,715

Owens

&

Minor,

Inc.,

6.63%,

04/01/30

(b)

...

6

5,280

Prime

Healthcare

Services,

Inc.,

7.25%,

11/01/25

(b)

....................

94

83,900

RegionalCare

Hospital

Partners

Holdings,

Inc.,

9.75%,

12/01/26

(b)

...............

97

86,796

Surgery

Center

Holdings,

Inc.

(b)

6.75%,

07/01/25

.................

267

246,748

10.00%,

04/15/27

................

2,058

2,001,385

Tenet

Healthcare

Corp.

(b)

4.63%,

09/01/24

.................

219

211,957

6.25%,

02/01/27

.................

860

802,509

5.13%,

11/01/27

.................

127

113,955

4.63%,

06/15/28

.................

48

41,950

6.13%,

10/01/28

.................

99

86,733

4.25%,

06/01/29

.................

31

25,676

6.13%,

06/15/30

.................

1,279

1,171,564

21,091,717

Hotels,

Restaurants

&

Leisure

—

1.3%

1011778

BC

ULC

(b)

3.88%,

01/15/28

.................

1,214

1,056,435

4.00%,

10/15/30

.................

123

96,872

Boyd

Gaming

Corp.,

4.75%,

12/01/27

....

713

631,012

Boyne

USA,

Inc.,

4.75%,

05/15/29

(b)

.....

697

583,901

Caesars

Entertainment,

Inc.

(b)

6.25%,

07/01/25

.................

1,939

1,868,711

8.13%,

07/01/27

.................

1,913

1,827,078

4.63%,

10/15/29

.................

923

705,248

Caesars

Resort

Collection

LLC,

5.75%,

07/01/25

(b)

....................

574

553,853

Carnival

Corp.

10.13%,

02/01/26

(d)

...............

EUR

100

96,535

10.50%,

02/01/26

(b)

...............

USD

93

92,015

7.63%,

03/01/26

(b)

................

41

31,160

5.75%,

03/01/27

(b)

................

671

470,069

9.88%,

08/01/27

(b)

................

318

311,640

4.00%,

08/01/28

(b)

................

530

427,572

6.00%,

05/01/29

(b)

................

180

118,183

CCM

Merger,

Inc.,

6.38%,

05/01/26

(b)

.....

122

111,331

CDI

Escrow

Issuer,

Inc.,

5.75%,

04/01/30

(b)

.

1,950

1,702,964

Cedar

Fair

LP

5.50%,

05/01/25

(b)

................

652

627,178

6.50%,

10/01/28

.................

93

86,025

Champion

Path

Holdings

Ltd.,

4.85%,

01/27/28

(d)

....................

200

126,787

Churchill

Downs,

Inc.,

4.75%,

01/15/28

(b)

..

29

25,087

Codere

Finance

2

Luxembourg

SA

(d)(k)

8.00%,

(8.00%

Cash

or

11.00%

PIK),

09/30/26

(c)

...................

EUR

5

4,441

2.00%,

(2.00%

Cash

or

12.75%

PIK),

11/30/27

(a)

...................

463

371,823

Expedia

Group,

Inc.,

2.95%,

03/15/31

....

USD

572

443,745

Fertitta

Entertainment

LLC

(b)

4.63%,

01/15/29

.................

640

529,600

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

6.75%,

01/15/30

.................

USD

25

$

18,987

Fortune

Star

BVI

Ltd.

(d)

6.75%,

07/02/23

.................

256

161,280

5.95%,

10/19/25

.................

330

132,000

Gamma

Bidco

SpA,

6.25%,

07/15/25

(d)

....

EUR

345

309,188

Hilton

Domestic

Operating

Co.,

Inc.

3.75%,

05/01/29

(b)

................

USD

53

43,767

4.88%,

01/15/30

.................

1,773

1,542,510

3.63%,

02/15/32

(b)

................

46

35,231

Life

Time,

Inc.,

8.00%,

04/15/26

(b)

.......

194

165,870

Lindblad

Expeditions

LLC,

6.75%,

02/15/27

(b)

255

224,400

MajorDrive

Holdings

IV

LLC,

6.38%,

06/01/29

(b)

144

99,281

Melco

Resorts

Finance

Ltd.,

5.25%,

04/26/26

(d)

733

507,236

Merlin

Entertainments

Ltd.,

5.75%,

06/15/26

(b)

200

186,169

MGM

China

Holdings

Ltd.,

5.38%,

05/15/24

(d)

700

609,000

MGM

Resorts

International

6.00%,

03/15/23

.................

186

186,056

5.75%,

06/15/25

.................

23

21,980

Midwest

Gaming

Borrower

LLC,

4.88%,

05/01/29

(b)

....................

92

75,787

NCL

Corp.

Ltd.

(b)

5.88%,

03/15/26

.................

356

270,823

7.75%,

02/15/29

.................

81

61,131

Premier

Entertainment

Sub

LLC,

5.88%,

09/01/31

(b)

....................

128

86,400

Raptor

Acquisition

Corp.,

4.88%,

11/01/26

(b)

.

63

54,182

Royal

Caribbean

Cruises

Ltd.

(b)

9.13%,

06/15/23

.................

57

57,998

11.50%,

06/01/25

................

84

89,250

5.50%,

08/31/26

.................

89

68,085

5.38%,

07/15/27

.................

599

440,589

11.63%,

08/15/27

................

107

97,372

8.25%,

01/15/29

.................

217

211,220

9.25%,

01/15/29

.................

297

292,650

Scientific

Games

International,

Inc.

(b)

8.63%,

07/01/25

.................

1,172

1,199,882

7.00%,

05/15/28

.................

487

459,168

7.25%,

11/15/29

.................

50

46,535

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

(b)

77

76,968

Station

Casinos

LLC,

4.63%,

12/01/31

(b)

...

1,138

859,514

Stonegate

Pub

Co.

Financing

plc,

8.25%,

07/31/25

(d)

....................

GBP

100

97,419

Studio

City

Finance

Ltd.,

6.00%,

07/15/25

(d)

.

USD

318

190,800

Sunny

Express

Enterprises

Corp.,

2.63%,

04/23/25

(d)

....................

600

560,802

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(b)

.....

154

151,909

Viking

Cruises

Ltd.,

5.88%,

09/15/27

(b)

....

250

190,625

Wynn

Las

Vegas

LLC,

5.25%,

05/15/27

(b)

..

64

56,333

Wynn

Macau

Ltd.,

4.88%,

10/01/24

(d)

.....

800

644,000

Wynn

Resorts

Finance

LLC

(b)

7.75%,

04/15/25

.................

174

169,965

5.13%,

10/01/29

.................

292

235,995

Yum!

Brands,

Inc.

4.75%,

01/15/30

(b)

................

9

7,865

5.38%,

04/01/32

.................

34

30,146

23,925,633

Household

Durables

—

0.5%

Ashton

Woods

USA

LLC

(b)

6.63%,

01/15/28

.................

54

45,254

4.63%,

08/01/29

.................

89

64,619

Brookfield

Residential

Properties,

Inc.

(b)

5.00%,

06/15/29

.................

137

101,417

4.88%,

02/15/30

.................

271

200,612

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(b)

484

438,707

BlackRock

Income

Fund

Schedules

of

Investments

45

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Household

Durables

(continued)

Installed

Building

Products,

Inc.,

5.75%,

02/01/28

(b)

....................

USD

101

$

90,390

K.

Hovnanian

Enterprises,

Inc.,

7.75%,

02/15/26

(b)

....................

90

86,400

KB

Home,

7.25%,

07/15/30

...........

24

21,780

Mattamy

Group

Corp.,

5.25%,

12/15/27

(b)

..

118

97,808

Meritage

Homes

Corp.,

5.13%,

06/06/27

...

60

53,174

Midea

Investment

Development

Co.

Ltd.,

2.88%,

02/24/27

(d)

...............

600

542,226

Newell

Brands,

Inc.,

5.75%,

04/01/46

(c)

....

8,142

6,371,115

SWF

Escrow

Issuer

Corp.,

6.50%,

10/01/29

(b)

617

365,573

Taylor

Morrison

Communities,

Inc.,

5.13%,

08/01/30

(b)

....................

79

63,769

Tempur

Sealy

International,

Inc.,

3.88%,

10/15/31

(b)

....................

647

473,927

TRI

Pointe

Homes,

Inc.

5.25%,

06/01/27

.................

2

1,729

5.70%,

06/15/28

.................

65

55,293

9,073,793

Household

Products

—

0.0%

(b)

Energizer

Holdings,

Inc.

4.75%,

06/15/28

.................

52

41,199

4.38%,

03/31/29

.................

23

17,061

Spectrum

Brands,

Inc.

5.50%,

07/15/30

.................

82

64,118

3.88%,

03/15/31

.................

27

18,408

140,786

Independent

Power

and

Renewable

Electricity

Producers

—

0.2%

Adani

Green

Energy

Ltd.,

4.38%,

09/08/24

(d)

295

241,900

Calpine

Corp.

(b)

5.13%,

03/15/28

.................

1,125

966,225

4.63%,

02/01/29

.................

70

57,040

5.00%,

02/01/31

.................

3

2,384

Clearway

Energy

Operating

LLC

(b)

4.75%,

03/15/28

.................

827

736,361

3.75%,

01/15/32

.................

185

143,418

Colbun

SA,

3.15%,

03/06/30

(d)

.........

1,853

1,463,870

3,611,198

Industrial

Conglomerates

—

0.0%

CITIC

Ltd.,

2.88%,

02/17/27

(d)

.........

300

272,970

Insurance

—

0.8%

Acrisure

LLC,

6.00%,

08/01/29

(b)

........

75

57,750

AIA

Group

Ltd.

(d)

3.20%,

03/11/25

.................

600

577,494

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.76%),

2.70%

(a)(h)

....................

715

607,750

Alliant

Holdings

Intermediate

LLC

(b)

4.25%,

10/15/27

.................

2,003

1,710,918

6.75%,

10/15/27

.................

2,564

2,209,627

5.88%,

11/01/29

.................

1,913

1,553,780

AmWINS

Group,

Inc.,

4.88%,

06/30/29

(b)

...

626

519,619

Ardonagh

Midco

2

plc,

11.50%,

(11.50%

Cash

or

12.75%

PIK),

01/15/27

(b)(k)

........

256

260,013

Asahi

Mutual

Life

Insurance

Co.,

(USD

Swap

Semi

5

Year

+

4.59%),

6.50%

(a)(d)(h)

.....

200

197,500

FWD

Group

Ltd.,

5.75%,

07/09/24

(d)

.....

200

193,350

Galaxy

Bidco

Ltd.,

6.50%,

07/31/26

(d)

.....

GBP

100

90,999

GTCR

AP

Finance,

Inc.,

8.00%,

05/15/27

(b)

.

USD

505

464,572

HUB

International

Ltd.

(b)

7.00%,

05/01/26

.................

1,720

1,631,274

5.63%,

12/01/29

.................

152

126,920

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

Kyobo

Life

Insurance

Co.

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.89%),

5.90%,

06/15/52

(a)(d)

....

USD

200

$

188,500

Muang

Thai

Life

Assurance

PCL,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

2.40%),

3.55%,

01/27/37

(a)(d)

..

275

229,948

NFP

Corp.

(b)

4.88%,

08/15/28

.................

1,160

989,845

6.88%,

08/15/28

.................

2,693

2,100,540

7.50%,

10/01/30

.................

64

60,730

Ryan

Specialty

Group

LLC,

4.38%,

02/01/30

(b)

99

83,966

Tongyang

Life

Insurance

Co.

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.98%),

5.25%

(a)(d)(h)

.........

800

668,400

ZhongAn

Online

P&C

Insurance

Co.

Ltd.,

3.13%,

07/16/25

(d)

...............

200

164,000

14,687,495

Interactive

Media

&

Services

—

0.4%

Baidu,

Inc.

4.13%,

06/30/25

.................

600

579,360

1.72%,

04/09/26

.................

1,400

1,234,240

Tencent

Holdings

Ltd.

(d)

1.81%,

01/26/26

.................

1,000

895,188

3.58%,

04/11/26

.................

800

755,150

3.60%,

01/19/28

.................

1,419

1,275,113

2.39%,

06/03/30

.................

900

707,231

Twitter,

Inc.

(b)

3.88%,

12/15/27

.................

266

249,435

5.00%,

03/01/30

.................

137

131,289

Weibo

Corp.,

3.50%,

07/05/24

.........

800

764,100

6,591,106

Internet

&

Direct

Marketing

Retail

—

0.2%

Alibaba

Group

Holding

Ltd.

3.60%,

11/28/24

.................

500

484,535

3.40%,

12/06/27

.................

626

562,217

4.00%,

12/06/37

.................

700

531,244

ANGI

Group

LLC,

3.88%,

08/15/28

(b)

.....

105

74,058

Go

Daddy

Operating

Co.

LLC,

3.50%,

03/01/29

(b)

....................

58

47,437

JD.com,

Inc.,

3.88%,

04/29/26

.........

500

473,531

Match

Group

Holdings

II

LLC

(b)

4.63%,

06/01/28

.................

49

42,814

4.13%,

08/01/30

.................

131

107,584

3.63%,

10/01/31

.................

1,266

955,830

3,279,250

IT

Services

—

1.0%

Acuris

Finance

US,

Inc.,

5.00%,

05/01/28

(b)

.

261

217,935

Ahead

DB

Holdings

LLC,

6.63%,

05/01/28

(b)

135

115,072

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(b)

542

462,055

Block,

Inc.,

3.50%,

06/01/31

..........

2,182

1,691,737

Booz

Allen

Hamilton,

Inc.

(b)

3.88%,

09/01/28

.................

61

52,476

4.00%,

07/01/29

.................

1,114

953,095

CA

Magnum

Holdings

5.38%,

10/31/26

(b)

................

663

553,605

5.38%,

10/31/26

(d)

................

300

250,500

Cablevision

Lightpath

LLC,

3.88%,

09/15/27

(b)

413

345,465

Centurion

Bidco

SpA,

5.88%,

09/30/26

(d)

...

EUR

100

85,774

Endurance

International

Group

Holdings,

Inc.,

6.00%,

02/15/29

(b)

...............

USD

105

69,704

Gartner,

Inc.,

3.75%,

10/01/30

(b)

........

817

668,833

Global

Payments,

Inc.

2.15%,

01/15/27

.................

8,745

7,483,039

4.95%,

08/15/27

.................

50

47,637

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

46

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

IT

Services

(continued)

2.90%,

05/15/30

.................

USD

2,000

$

1,594,250

HCL

America,

Inc.,

1.38%,

03/10/26

(d)

....

500

437,437

ION

Trading

Technologies

SARL,

5.75%,

05/15/28

(b)

....................

963

784,845

Northwest

Fiber

LLC

(b)

4.75%,

04/30/27

.................

252

219,240

6.00%,

02/15/28

.................

361

279,832

10.75%,

06/01/28

................

109

101,521

Tempo

Acquisition

LLC,

5.75%,

06/01/25

(b)

.

32

31,182

Twilio,

Inc.,

3.88%,

03/15/31

..........

837

657,022

United

Group

BV,

4.88%,

07/01/24

(d)

.....

EUR

100

91,023

Wipro

IT

Services

LLC,

1.50%,

06/23/26

(d)

..

USD

1,050

914,156

18,107,435

Leisure

Products

—

0.0%

Mattel,

Inc.

3.75%,

04/01/29

(b)

................

10

8,408

6.20%,

10/01/40

.................

134

126,133

5.45%,

11/01/41

.................

21

17,594

152,135

Life

Sciences

Tools

&

Services

—

0.1%

(b)

Charles

River

Laboratories

International,

Inc.

4.25%,

05/01/28

.................

78

67,928

3.75%,

03/15/29

.................

32

26,618

PRA

Health

Sciences,

Inc.,

2.88%,

07/15/26

487

428,486

Syneos

Health,

Inc.,

3.63%,

01/15/29

....

1,523

1,212,734

1,735,766

Machinery

—

0.3%

Amsted

Industries,

Inc.,

5.63%,

07/01/27

(b)

.

108

99,360

CSSC

Capital

2015

Ltd.,

2.50%,

02/13/25

(d)

.

300

279,713

EnPro

Industries,

Inc.,

5.75%,

10/15/26

...

126

121,275

Husky

III

Holding

Ltd.,

13.00%,

(13.00%

Cash

or

13.75%

PIK),

02/15/25

(b)(k)

........

167

156,562

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

(b)

98

83,399

OT

Merger

Corp.,

7.88%,

10/15/29

(b)

.....

144

97,560

Roller

Bearing

Co.

of

America,

Inc.,

4.38%,

10/15/29

(b)

....................

153

129,054

Stevens

Holding

Co.,

Inc.,

6.13%,

10/01/26

(b)

80

78,184

Terex

Corp.,

5.00%,

05/15/29

(b)

........

88

75,525

Titan

Acquisition

Ltd.,

7.75%,

04/15/26

(b)

...

2,476

1,957,108

Titan

International,

Inc.,

7.00%,

04/30/28

..

54

48,995

TK

Elevator

Holdco

GmbH,

7.63%,

07/15/28

(b)

981

821,587

TK

Elevator

Midco

GmbH,

4.38%,

07/15/27

(d)

EUR

100

82,079

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(b)

USD

2,099

1,784,591

Wabash

National

Corp.,

4.50%,

10/15/28

(b)

.

88

68,218

5,883,210

Marine

—

0.0%

Misc

Capital

Two

Labuan

Ltd.,

3.75%,

04/06/27

(d)

....................

600

540,862

Seaspan

Corp.,

5.50%,

08/01/29

(b)

......

153

120,870

661,732

Media

—

1.9%

Altice

Financing

SA

(b)

5.00%,

01/15/28

.................

1,557

1,199,326

5.75%,

08/15/29

.................

200

153,044

AMC

Networks,

Inc.

5.00%,

04/01/24

.................

10

9,541

4.25%,

02/15/29

.................

117

86,505

Block

Communications,

Inc.,

4.88%,

03/01/28

(b)

254

219,710

Cable

One,

Inc.

1.13%,

03/15/28

(i)

................

131

94,320

4.00%,

11/15/30

(b)

................

1,270

988,581

Charter

Communications

Operating

LLC

5.13%,

07/01/49

.................

1,000

733,037

Security

Par

(000)

Par

(000)

Value

Media

(continued)

3.70%,

04/01/51

.................

USD

2,410

$

1,460,581

4.40%,

12/01/61

.................

5,750

3,663,168

Clear

Channel

International

BV,

6.63%,

08/01/25

(b)

....................

256

237,877

Clear

Channel

Outdoor

Holdings,

Inc.

(b)

5.13%,

08/15/27

.................

2,826

2,387,227

7.75%,

04/15/28

.................

3,536

2,669,680

CMG

Media

Corp.,

8.88%,

12/15/27

(b)

....

153

116,887

Comcast

Corp.

3.75%,

04/01/40

.................

910

715,363

4.05%,

11/01/52

.................

260

199,020

2.94%,

11/01/56

.................

448

267,400

2.99%,

11/01/63

.................

5,241

3,035,565

CSC

Holdings

LLC

5.25%,

06/01/24

.................

132

122,100

5.75%,

01/15/30

(b)

................

2,811

1,997,961

4.50%,

11/15/31

(b)

................

246

184,790

Directv

Financing

LLC,

5.88%,

08/15/27

(b)

..

374

322,429

DISH

DBS

Corp.

5.25%,

12/01/26

(b)

................

99

81,105

5.75%,

12/01/28

(b)

................

597

451,177

5.13%,

06/01/29

.................

86

50,525

GCI

LLC,

4.75%,

10/15/28

(b)

..........

167

138,653

Grupo

Televisa

SAB

4.63%,

01/30/26

.................

562

544,719

5.00%,

05/13/45

.................

1,133

949,159

Lamar

Media

Corp.,

3.75%,

02/15/28

.....

14

12,229

LCPR

Senior

Secured

Financing

DAC

(b)

6.75%,

10/15/27

.................

200

166,000

5.13%,

07/15/29

.................

1,435

1,080,651

Liberty

Broadband

Corp.

(b)(i)

1.25%,

09/30/50

.................

258

243,810

2.75%,

09/30/50

.................

317

303,915

Midcontinent

Communications,

5.38%,

08/15/27

(b)

....................

122

108,697

Outfront

Media

Capital

LLC

(b)

5.00%,

08/15/27

.................

1,113

972,261

4.25%,

01/15/29

.................

230

180,665

4.63%,

03/15/30

.................

11

8,571

Radiate

Holdco

LLC

(b)

4.50%,

09/15/26

.................

1,159

950,647

6.50%,

09/15/28

.................

1,178

821,655

Scripps

Escrow

II,

Inc.,

3.88%,

01/15/29

(b)

..

88

70,154

Sinclair

Television

Group,

Inc.,

4.13%,

12/01/30

(b)

....................

1,124

845,810

Sirius

XM

Radio,

Inc.

(b)

3.13%,

09/01/26

.................

769

675,355

5.00%,

08/01/27

.................

75

68,813

4.00%,

07/15/28

.................

58

49,334

4.13%,

07/01/30

.................

30

24,385

3.88%,

09/01/31

.................

969

751,401

Stagwell

Global

LLC,

5.63%,

08/15/29

(b)

...

111

91,305

Telenet

Finance

Luxembourg

Notes

SARL,

5.50%,

03/01/28

(b)

...............

200

173,454

Univision

Communications,

Inc.

(b)

5.13%,

02/15/25

.................

46

43,671

6.63%,

06/01/27

.................

619

584,158

7.38%,

06/30/30

.................

95

90,658

UPC

Broadband

Finco

BV,

4.88%,

07/15/31

(b)

415

322,052

Virgin

Media

Vendor

Financing

Notes

IV

DAC,

5.00%,

07/15/28

(b)

...............

982

794,192

Ziggo

BV,

4.88%,

01/15/30

(b)

..........

969

765,510

33,278,803

BlackRock

Income

Fund

Schedules

of

Investments

47

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Metals

&

Mining

—

0.9%

ABJA

Investment

Co.

Pte.

Ltd.

(d)

4.45%,

07/24/23

.................

USD

900

$

888,750

5.95%,

07/31/24

.................

213

210,071

AngloGold

Ashanti

Holdings

plc,

3.38%,

11/01/28

.....................

672

545,664

Arconic

Corp.

(b)

6.00%,

05/15/25

.................

94

90,481

6.13%,

02/15/28

.................

856

756,131

ATI,

Inc.,

5.13%,

10/01/31

...........

160

130,709

Big

River

Steel

LLC,

6.63%,

01/31/29

(b)

...

1,951

1,795,661

Carpenter

Technology

Corp.

6.38%,

07/15/28

.................

16

14,838

7.63%,

03/15/30

.................

143

137,681

Chinalco

Capital

Holdings

Ltd.,

2.13%,

06/03/26

(d)

....................

300

268,236

Commercial

Metals

Co.

4.13%,

01/15/30

.................

52

42,693

4.38%,

03/15/32

.................

56

44,240

Constellium

SE

4.25%,

02/15/26

(d)

................

EUR

100

87,714

5.63%,

06/15/28

(b)

................

USD

250

205,039

3.75%,

04/15/29

(b)

................

2,139

1,561,643

ERO

Copper

Corp.,

6.50%,

02/15/30

(b)

....

116

87,072

FMG

Resources

August

2006

Pty.

Ltd.,

6.13%,

04/15/32

(b)

....................

100

85,925

Freeport

Indonesia

PT,

4.76%,

04/14/27

(b)

..

615

556,575

Freeport-McMoRan,

Inc.,

5.45%,

03/15/43

.

260

216,918

GUSAP

III

LP,

4.25%,

01/21/30

(d)

.......

1,234

1,075,740

JSW

Steel

Ltd.,

3.95%,

04/05/27

(d)

......

250

197,500

Kaiser

Aluminum

Corp.

(b)

4.63%,

03/01/28

.................

93

75,881

4.50%,

06/01/31

.................

1,418

1,037,607

Mineral

Resources

Ltd.,

8.50%,

05/01/30

(b)

.

292

282,189

New

Gold,

Inc.,

7.50%,

07/15/27

(b)

......

96

75,840

Novelis

Corp.

(b)

3.25%,

11/15/26

.................

1,097

915,699

4.75%,

01/30/30

.................

88

72,160

3.88%,

08/15/31

.................

2,159

1,610,441

Novelis

Sheet

Ingot

GmbH,

3.38%,

04/15/29

(d)

EUR

100

76,958

Periama

Holdings

LLC,

5.95%,

04/19/26

(d)

..

USD

378

327,443

POSCO

Holdings,

Inc.,

2.50%,

01/17/25

(d)

..

500

467,750

United

States

Steel

Corp.,

6.88%,

03/01/29

.

14

12,724

Vale

Overseas

Ltd.

6.25%,

08/10/26

.................

874

880,173

3.75%,

07/08/30

.................

660

531,712

Vedanta

Resources

Finance

II

plc

(d)

8.00%,

04/23/23

.................

473

436,727

13.88%,

01/21/24

................

200

166,412

15,968,997

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.,

4.38%,

01/15/27

(b)

....................

57

48,592

Multiline

Retail

—

0.0%

NMG

Holding

Co.,

Inc.,

7.13%,

04/01/26

(b)

..

117

107,506

Multi-Utilities

—

0.2%

Dominion

Energy,

Inc.,

Series

C,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.20%),

4.35%

(a)(h)

..........

4,445

3,770,954

Oil,

Gas

&

Consumable

Fuels

—

4.0%

Aethon

United

BR

LP,

8.25%,

02/15/26

(b)

...

954

921,888

Antero

Midstream

Partners

LP

(b)

5.75%,

03/01/27

.................

104

96,186

5.38%,

06/15/29

.................

589

520,028

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Apache

Corp.

4.25%,

01/15/30

.................

USD

533

$

466,108

5.10%,

09/01/40

.................

123

99,294

5.35%,

07/01/49

.................

129

101,265

Ascent

Resources

Utica

Holdings

LLC

(b)

9.00%,

11/01/27

.................

405

494,021

5.88%,

06/30/29

.................

1,102

980,780

Buckeye

Partners

LP

4.13%,

03/01/25

(b)

................

298

272,745

5.85%,

11/15/43

.................

74

54,815

Callon

Petroleum

Co.

6.38%,

07/01/26

.................

60

54,065

8.00%,

08/01/28

(b)

................

2,264

2,088,540

7.50%,

06/15/30

(b)

................

199

174,226

Cheniere

Corpus

Christi

Holdings

LLC,

5.13%,

06/30/27

.....................

500

484,108

Cheniere

Energy

Partners

LP

4.50%,

10/01/29

.................

449

395,295

4.00%,

03/01/31

.................

186

155,957

3.25%,

01/31/32

.................

2,914

2,237,530

Chesapeake

Energy

Corp.

(b)

5.88%,

02/01/29

.................

17

15,765

6.75%,

04/15/29

.................

815

781,275

CITGO

Petroleum

Corp.,

7.00%,

06/15/25

(b)

.

1,093

1,044,394

Civitas

Resources,

Inc.,

5.00%,

10/15/26

(b)

.

113

102,658

CNOOC

Finance

2013

Ltd.,

2.88%,

09/30/29

1,000

885,500

CNOOC

Finance

2015

USA

LLC,

3.50%,

05/05/25

.....................

600

579,113

CNOOC

Petroleum

North

America

ULC,

7.88%,

03/15/32

.....................

800

933,400

CNPC

Global

Capital

Ltd.,

1.35%,

06/23/25

(d)

500

453,500

CNX

Midstream

Partners

LP,

4.75%,

04/15/30

(b)

118

92,619

CNX

Resources

Corp.

(b)

6.00%,

01/15/29

.................

7

6,388

7.38%,

01/15/31

.................

233

227,891

Colgate

Energy

Partners

III

LLC

(b)

7.75%,

02/15/26

.................

183

179,619

5.88%,

07/01/29

.................

587

523,974

Comstock

Resources,

Inc.

(b)

6.75%,

03/01/29

.................

1,490

1,374,239

5.88%,

01/15/30

.................

170

148,062

Continuum

Energy

Levanter

Pte.

Ltd.,

4.50%,

02/09/27

(d)

....................

336

272,355

CQP

Holdco

LP,

5.50%,

06/15/31

(b)

......

1,696

1,435,706

Crescent

Energy

Finance

LLC,

7.25%,

05/01/26

(b)

....................

1,858

1,669,264

Crestwood

Midstream

Partners

LP

(b)

5.63%,

05/01/27

.................

42

38,010

6.00%,

02/01/29

.................

33

29,535

8.00%,

04/01/29

.................

65

62,562

CrownRock

LP

(b)

5.63%,

10/15/25

.................

1,703

1,630,401

5.00%,

05/01/29

.................

49

43,233

DCP

Midstream

Operating

LP

5.63%,

07/15/27

.................

31

29,942

5.13%,

05/15/29

.................

17

15,929

6.45%,

11/03/36

(b)

................

29

26,495

6.75%,

09/15/37

(b)

................

156

151,263

DT

Midstream,

Inc.,

4.13%,

06/15/29

(b)

....

1,133

957,385

Earthstone

Energy

Holdings

LLC,

8.00%,

04/15/27

(b)

....................

101

95,192

Enbridge,

Inc.,

(LIBOR

USD

3

Month

+

3.64%),

6.25%,

03/01/78

(a)

...............

360

323,532

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

48

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

Energy

Transfer

LP

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.69%),

6.50%

(a)(h)

....................

USD

265

$

230,843

5.15%,

02/01/43

.................

150

118,430

5.30%,

04/15/47

.................

721

575,180

5.00%,

05/15/50

.................

1,060

828,494

EnLink

Midstream

LLC

5.63%,

01/15/28

(b)

................

36

33,660

5.38%,

06/01/29

.................

1,233

1,128,195

6.50%,

09/01/30

(b)

................

141

137,686

EnLink

Midstream

Partners

LP

4.15%,

06/01/25

.................

2

1,856

4.85%,

07/15/26

.................

169

155,207

5.60%,

04/01/44

.................

52

39,556

5.45%,

06/01/47

.................

46

33,602

Enterprise

Products

Operating

LLC

4.80%,

02/01/49

.................

320

263,306

3.95%,

01/31/60

.................

320

220,668

EQM

Midstream

Partners

LP

6.00%,

07/01/25

(b)

................

53

49,005

4.13%,

12/01/26

.................

817

692,138

7.50%,

06/01/30

(b)

................

31

29,294

4.75%,

01/15/31

(b)

................

654

519,113

Galaxy

Pipeline

Assets

Bidco

Ltd.,

2.63%,

03/31/36

(d)

....................

1,727

1,331,733

Genesis

Energy

LP

6.50%,

10/01/25

.................

41

37,068

7.75%,

02/01/28

.................

60

52,200

Greenko

Dutch

BV,

3.85%,

03/29/26

(d)

....

194

155,200

Greenko

Solar

Mauritius

Ltd.,

5.95%,

07/29/26

(d)

....................

665

552,781

Gulfport

Energy

Corp.,

8.00%,

05/17/26

(b)

..

28

27,363

Hanwha

Energy

USA

Holdings

Corp.,

4.13%,

07/05/25

(d)

....................

575

561,352

Harvest

Midstream

I

LP,

7.50%,

09/01/28

(b)

.

51

47,668

Hess

Corp.,

5.80%,

04/01/47

..........

3,200

2,857,748

Hess

Midstream

Operations

LP,

4.25%,

02/15/30

(b)

....................

546

440,895

Hilcorp

Energy

I

LP

(b)

6.25%,

11/01/28

.................

65

59,974

5.75%,

02/01/29

.................

20

17,486

6.00%,

04/15/30

.................

10

8,715

6.00%,

02/01/31

.................

10

8,664

HPCL-Mittal

Energy

Ltd.,

5.45%,

10/22/26

(d)

.

256

233,600

India

Green

Power

Holdings,

4.00%,

02/22/27

(d)

190

151,525

ITT

Holdings

LLC,

6.50%,

08/01/29

(b)

.....

809

627,598

Kinetik

Holdings

LP,

5.88%,

06/15/30

(b)

....

822

752,672

Magnolia

Oil

&

Gas

Operating

LLC,

6.00%,

08/01/26

(b)

....................

12

11,500

Matador

Resources

Co.,

5.88%,

09/15/26

..

751

724,467

Medco

Oak

Tree

Pte.

Ltd.,

7.38%,

05/14/26

(d)

250

214,062

Medco

Platinum

Road

Pte.

Ltd.,

6.75%,

01/30/25

(d)

....................

200

179,662

MPLX

LP,

4.95%,

03/14/52

...........

5,499

4,303,362

Murphy

Oil

Corp.

5.88%,

12/01/27

.................

41

38,324

6.13%,

12/01/42

(c)

................

16

12,726

New

Fortress

Energy,

Inc.

(b)

6.75%,

09/15/25

.................

2,857

2,706,150

6.50%,

09/30/26

.................

172

158,911

NGL

Energy

Operating

LLC,

7.50%,

02/01/26

(b)

21

18,682

NGPL

PipeCo

LLC,

7.77%,

12/15/37

(b)

....

122

123,304

Northern

Oil

&

Gas,

Inc.,

8.13%,

03/01/28

(b)

.

1,701

1,594,688

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

NuStar

Logistics

LP

6.00%,

06/01/26

.................

USD

498

$

455,862

6.38%,

10/01/30

.................

47

40,216

Occidental

Petroleum

Corp.

6.95%,

07/01/24

.................

344

353,460

8.00%,

07/15/25

.................

13

13,780

5.88%,

09/01/25

.................

45

45,136

8.88%,

07/15/30

.................

120

133,596

6.63%,

09/01/30

.................

2,522

2,559,830

7.50%,

05/01/31

.................

55

57,475

6.45%,

09/15/36

.................

860

860,000

6.60%,

03/15/46

.................

46

47,380

ONGC

Videsh

Ltd.,

4.63%,

07/15/24

(d)

....

300

294,338

Parkland

Corp.,

5.88%,

07/15/27

(b)

......

62

57,474

PDC

Energy,

Inc.,

6.13%,

09/15/24

......

20

19,684

Permian

Resources

Operating

LLC,

6.88%,

04/01/27

(b)

....................

84

81,266

Petronas

Energy

Canada

Ltd.,

2.11%,

03/23/28

(d)

....................

600

515,925

Raizen

Fuels

Finance

SA,

5.30%,

01/20/27

(b)

1,200

1,140,000

Range

Resources

Corp.,

4.88%,

05/15/25

..

91

85,775

Reliance

Industries

Ltd.

(d)

4.13%,

01/28/25

.................

750

727,640

4.13%,

01/28/25

.................

1,150

1,115,716

3.67%,

11/30/27

.................

412

377,464

2.88%,

01/12/32

.................

500

391,388

Rockcliff

Energy

II

LLC,

5.50%,

10/15/29

(b)

.

663

580,507

Rockies

Express

Pipeline

LLC,

4.95%,

07/15/29

(b)

....................

31

26,592

Sinopec

Group

Overseas

Development

Ltd.

(d)

1.45%,

01/08/26

.................

500

451,325

2.95%,

08/08/29

.................

1,000

895,150

2.70%,

05/13/30

.................

1,350

1,169,046

2.30%,

01/08/31

.................

1,400

1,163,008

SK

Battery

America,

Inc.,

2.13%,

01/26/26

(d)

300

260,829

SM

Energy

Co.

6.75%,

09/15/26

.................

414

398,475

6.63%,

01/15/27

.................

15

14,398

6.50%,

07/15/28

.................

462

439,050

Southwestern

Energy

Co.

5.70%,

01/23/25

(c)

................

18

17,624

5.38%,

02/01/29

.................

76

68,917

Sunoco

LP

6.00%,

04/15/27

.................

25

23,839

5.88%,

03/15/28

.................

36

32,668

Tallgrass

Energy

Partners

LP

(b)

6.00%,

03/01/27

.................

31

28,125

6.00%,

12/31/30

.................

21

17,852

6.00%,

09/01/31

.................

78

65,910

Tap

Rock

Resources

LLC,

7.00%,

10/01/26

(b)

1,534

1,402,344

TerraForm

Power

Operating

LLC,

4.75%,

01/15/30

(b)

....................

38

32,254

Thaioil

Treasury

Center

Co.

Ltd.,

2.50%,

06/18/30

(d)

....................

400

308,575

Venture

Global

Calcasieu

Pass

LLC

(b)

3.88%,

08/15/29

.................

4,017

3,446,104

4.13%,

08/15/31

.................

106

87,924

3.88%,

11/01/33

.................

1,445

1,123,487

Vermilion

Energy,

Inc.,

6.88%,

05/01/30

(b)

..

117

107,640

Western

Midstream

Operating

LP

4.75%,

08/15/28

.................

659

599,690

5.45%,

04/01/44

.................

1,368

1,122,228

5.30%,

03/01/48

.................

45

37,013

5.50%,

08/15/48

.................

99

80,066

BlackRock

Income

Fund

Schedules

of

Investments

49

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

(continued)

5.50%,

02/01/50

(c)

................

USD

444

$

358,530

70,524,940

Paper

&

Forest

Products

—

0.1%

Suzano

Austria

GmbH,

3.75%,

01/15/31

...

1,275

994,500

Personal

Products

—

0.0%

(b)

Coty,

Inc.,

4.75%,

01/15/29

...........

6

5,076

Prestige

Brands,

Inc.,

3.75%,

04/01/31

....

82

63,706

68,782

Pharmaceuticals

—

0.2%

Catalent

Pharma

Solutions,

Inc.

(b)

5.00%,

07/15/27

.................

56

49,951

3.13%,

02/15/29

.................

47

36,249

3.50%,

04/01/30

.................

900

708,048

Cheplapharm

Arzneimittel

GmbH,

5.50%,

01/15/28

(b)

....................

494

407,550

Elanco

Animal

Health,

Inc.,

6.40%,

08/28/28

(c)

28

24,718

Jazz

Securities

DAC,

4.38%,

01/15/29

(b)

...

501

432,739

Nidda

Healthcare

Holding

GmbH,

3.50%,

09/30/24

(d)

....................

EUR

100

88,694

Organon

&

Co.

(b)

4.13%,

04/30/28

.................

USD

720

615,600

5.13%,

04/30/31

.................

720

589,795

Rossini

SARL,

6.75%,

10/30/25

(d)

.......

EUR

100

94,819

Teva

Pharmaceutical

Finance

Netherlands

II

BV

6.00%,

01/31/25

.................

100

95,665

4.50%,

03/01/25

.................

100

92,266

Teva

Pharmaceutical

Finance

Netherlands

III

BV

7.13%,

01/31/25

.................

USD

200

194,350

3.15%,

10/01/26

.................

70

57,041

3,487,485

Professional

Services

—

0.1%

CoreLogic,

Inc.,

4.50%,

05/01/28

(b)

......

402

273,360

Dun

&

Bradstreet

Corp.

(The),

5.00%,

12/15/29

(b)

....................

1,358

1,120,350

KBR,

Inc.,

4.75%,

09/30/28

(b)

..........

113

97,076

La

Financiere

Atalian

SASU,

5.13%,

05/15/25

(d)

EUR

100

92,982

Science

Applications

International

Corp.,

4.88%,

04/01/28

(b)

...............

USD

139

123,662

1,707,430

Real

Estate

Management

&

Development

—

0.9%

Agile

Group

Holdings

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

9.22%),

6.88%

(a)(d)(h)

.............

420

88,200

Alam

Sutera

Realty

Tbk.

PT,

8.00%,

(8.00%

Cash

or

6.25%

PIK),

05/02/24

(k)

.......

184

138,000

Aldar

Sukuk

No.

2

Ltd.,

3.88%,

10/22/29

(d)

..

929

863,970

Aroundtown

SA,

(EUR

Swap

Annual

5

Year

+

3.98%),

3.38%

(a)(d)(h)

..............

EUR

100

63,703

Celulosa

Arauco

y

Constitucion

SA

(d)

4.25%,

04/30/29

.................

USD

920

762,045

5.15%,

01/29/50

.................

962

679,593

China

Aoyuan

Group

Ltd.,

8.50%,

01/23/22

(d)(e)(l)

200

12,500

China

Overseas

Finance

Cayman

VIII

Ltd.

(d)

2.38%,

03/02/25

.................

400

364,575

2.75%,

03/02/30

.................

678

522,187

China

Resources

Land

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.14%),

3.75%

(a)(d)(h)

.............

200

187,537

China

SCE

Group

Holdings

Ltd.,

5.95%,

09/29/24

(d)

....................

440

85,195

Security

Par

(000)

Par

(000)

Value

Real

Estate

Management

&

Development

(continued)

CIFI

Holdings

Group

Co.

Ltd.,

6.55%,

03/28/24

(d)

....................

USD

300

$

79,500

Corp.

Inmobiliaria

Vesta

SAB

de

CV,

3.63%,

05/13/31

(b)

....................

1,300

968,744

Country

Garden

Holdings

Co.

Ltd.

(d)

3.13%,

10/22/25

.................

200

66,000

7.25%,

04/08/26

.................

550

195,250

2.70%,

07/12/26

.................

600

192,000

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

(b)

...............

377

349,686

Easy

Tactic

Ltd.,

7.50%,

(7.50%

Cash

or

7.50%

PIK),

07/11/28

(k)

................

325

35,148

Elect

Global

Investments

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.89%),

4.10%

(a)(d)(h)

.........

400

334,120

ESR

Group

Ltd.,

1.50%,

09/30/25

(d)(i)

.....

700

656,600

Fantasia

Holdings

Group

Co.

Ltd.

(d)(e)(l)

15.00%,

12/18/21

................

200

17,912

7.95%,

07/05/22

.................

750

63,750

12.25%,

10/18/22

................

755

64,175

10.88%,

01/09/23

................

330

28,050

11.75%,

04/17/23

................

5,280

448,800

Five

Point

Operating

Co.

LP,

7.88%,

11/15/25

(b)

1,000

795,408

Global

Prime

Capital

Pte.

Ltd.,

5.50%,

10/18/23

(d)

....................

200

197,725

GLP

Pte.

Ltd.

(d)

3.88%,

06/04/25

.................

600

502,612

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.74%),

4.50%

(a)(h)

....................

250

165,125

Greenland

Global

Investment

Ltd.,

6.75%,

09/26/23

(d)

....................

375

161,250

Howard

Hughes

Corp.

(The),

4.38%,

02/01/31

(b)

790

567,461

JGC

Ventures

Pte.

Ltd.

(k)

0.00%,

(0.00%

Cash

or

3.00%

PIK),

06/30/25

....................

29

12,341

3.00%,

(3.00%

Cash

or

3.00%

PIK),

06/30/25

(d)(e)(l)

.................

1,792

795,045

KWG

Group

Holdings

Ltd.,

6.00%,

08/14/26

(d)

550

81,916

Longfor

Group

Holdings

Ltd.,

3.38%,

04/13/27

(d)

400

291,450

MAF

Sukuk

Ltd.,

4.64%,

05/14/29

(d)

......

894

853,658

Modern

Land

China

Co.

Ltd.,

12.85%,

10/25/21

(d)(e)(l)

..................

729

112,995

NWD

Finance

BVI

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.86%),

4.13%

(a)(d)(h)

.............

700

528,500

Powerlong

Real

Estate

Holdings

Ltd.,

6.25%,

08/10/24

(d)

....................

200

28,413

Realogy

Group

LLC,

5.25%,

04/15/30

(b)

...

398

270,278

Redsun

Properties

Group

Ltd.,

10.50%,

10/03/22

(d)(e)(l)

..................

200

14,000

RKPF

Overseas

2019

A

Ltd.,

6.70%,

09/30/24

(d)

350

198,144

Ronshine

China

Holdings

Ltd.

(d)(e)(l)

7.35%,

12/15/23

.................

200

11,000

7.10%,

01/25/25

.................

710

39,050

Shui

On

Development

Holding

Ltd.,

6.15%,

08/24/24

(d)

....................

433

324,750

Sinic

Holdings

Group

Co.

Ltd.

(d)(e)(l)

8.50%,

01/24/23

.................

1,100

11,000

10.50%,

06/18/23

................

1,309

13,090

Sinochem

Offshore

Capital

Co.

Ltd.,

2.38%,

09/23/31

(d)

....................

250

189,787

Sun

Hung

Kai

Properties

Capital

Market

Ltd.,

3.75%,

02/25/29

(d)

...............

300

276,056

Sunac

China

Holdings

Ltd.,

6.65%,

08/03/24

(d)(e)

(l)

.........................

284

36,920

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

50

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Real

Estate

Management

&

Development

(continued)

Swire

Pacific

MTN

Financing

Ltd.,

3.88%,

09/21/25

(d)

....................

USD

400

$

385,950

Theta

Capital

Pte.

Ltd.,

8.13%,

01/22/25

(d)

..

200

154,413

Times

China

Holdings

Ltd.,

5.75%,

01/14/27

(d)

400

44,000

Unique

Pub

Finance

Co.

plc

(The)

(d)

Series

A4,

5.66%,

06/30/27

.........

GBP

48

52,978

Series

N,

6.46%,

03/30/32

(c)

.........

300

376,422

Vanke

Real

Estate

Hong

Kong

Co.

Ltd.

(d)

4.15%,

04/18/23

.................

USD

800

775,150

5.35%,

03/11/24

.................

300

279,994

Westwood

Group

Holdings

Ltd.,

2.80%,

01/20/26

(d)

....................

400

352,075

WeWork

Cos.

LLC,

5.00%,

07/10/25

(b)

....

83

48,154

Yango

Justice

International

Ltd.,

10.25%,

09/15/22

(e)(l)

...................

283

13,496

Yanlord

Land

HK

Co.

Ltd.,

6.75%,

04/23/23

(d)

250

231,250

Yuzhou

Group

Holdings

Co.

Ltd.

(d)(e)(l)

8.30%,

05/27/25

.................

1,458

91,125

7.38%,

01/13/26

.................

1,250

78,125

7.85%,

08/12/26

.................

1,800

112,500

6.35%,

01/13/27

.................

200

12,500

Zhenro

Properties

Group

Ltd.,

7.35%,

02/05/25

(d)(e)(l)

..................

372

14,880

16,768,226

Road

&

Rail

—

0.4%

Avis

Budget

Car

Rental

LLC,

5.38%,

03/01/29

(b)

35

28,740

CMB

International

Leasing

Management

Ltd.,

3.00%,

07/03/24

(d)

...............

600

574,800

Guangzhou

Metro

Investment

Finance

BVI

Ltd.,

1.51%,

09/17/25

(d)

...............

400

357,700

Hertz

Corp.

(The),

5.00%,

12/01/29

(b)

.....

90

66,937

Loxam

SAS,

4.50%,

02/15/27

(d)

........

EUR

100

82,812

NESCO

Holdings

II,

Inc.,

5.50%,

04/15/29

(b)

.

USD

77

64,179

SF

Holding

Investment

2021

Ltd.,

2.38%,

11/17/26

(d)

....................

800

710,992

Uber

Technologies,

Inc.

7.50%,

05/15/25

(b)

................

1,452

1,448,370

0.00%,

12/15/25

(i)(j)

...............

160

132,785

7.50%,

09/15/27

(b)

................

159

155,820

6.25%,

01/15/28

(b)

................

3,009

2,798,370

4.50%,

08/15/29

(b)

................

134

112,644

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

(b)

....................

78

68,246

6,602,395

Semiconductors

&

Semiconductor

Equipment

—

0.9%

Broadcom,

Inc.

(b)

1.95%,

02/15/28

.................

2,662

2,181,241

3.75%,

02/15/51

.................

10,000

6,557,898

Entegris

Escrow

Corp.,

4.75%,

04/15/29

(b)

..

1,975

1,739,629

Entegris,

Inc.

(b)

4.38%,

04/15/28

.................

480

406,953

3.63%,

05/01/29

.................

36

28,489

Microchip

Technology,

Inc.,

1.63%,

02/15/25

(i)

69

184,959

NXP

BV,

4.40%,

06/01/27

............

1,405

1,324,915

SK

Hynix,

Inc.

(d)

1.00%,

01/19/24

.................

1,200

1,129,182

1.50%,

01/19/26

.................

500

431,813

Synaptics,

Inc.,

4.00%,

06/15/29

(b)

.......

689

554,683

TSMC

Global

Ltd.,

2.25%,

04/23/31

(d)

.....

950

743,878

15,283,640

Security

Par

(000)

Par

(000)

Value

Software

—

1.3%

ACI

Worldwide,

Inc.,

5.75%,

08/15/26

(b)

...

USD

125

$

118,087

AthenaHealth

Group,

Inc.,

6.50%,

02/15/30

(b)

1,692

1,337,644

Boxer

Parent

Co.,

Inc.

(b)

7.13%,

10/02/25

.................

1,451

1,422,089

9.13%,

03/01/26

.................

549

527,589

Camelot

Finance

SA,

4.50%,

11/01/26

(b)

...

373

337,494

Celestial

Dynasty

Ltd.,

4.25%,

06/27/29

(d)

..

500

422,281

Central

Parent,

Inc.,

7.25%,

06/15/29

(b)

....

860

817,598

Change

Healthcare

Holdings

LLC,

5.75%,

03/01/25

(b)

....................

1,598

1,588,324

Clarivate

Science

Holdings

Corp.

(b)

3.88%,

07/01/28

.................

1,679

1,384,839

4.88%,

07/01/29

.................

622

487,026

Condor

Merger

Sub,

Inc.,

7.38%,

02/15/30

(b)

1,355

1,107,801

Consensus

Cloud

Solutions,

Inc.,

6.50%,

10/15/28

(b)

....................

83

70,456

Elastic

NV,

4.13%,

07/15/29

(b)

.........

802

633,452

Fair

Isaac

Corp.,

4.00%,

06/15/28

(b)

......

74

63,054

Helios

Software

Holdings,

Inc.,

4.63%,

05/01/28

(b)

....................

200

149,400

MicroStrategy,

Inc.,

6.13%,

06/15/28

(b)

....

686

565,230

NCR

Corp.

(b)

5.00%,

10/01/28

.................

674

530,289

6.13%,

09/01/29

.................

29

24,969

NortonLifeLock,

Inc.,

7.13%,

09/30/30

(b)

...

261

252,442

Open

Text

Corp.,

3.88%,

12/01/29

(b)

.....

111

85,496

Open

Text

Holdings,

Inc.,

4.13%,

02/15/30

(b)

887

708,367

Oracle

Corp.,

3.95%,

03/25/51

.........

8,055

5,342,120

Picard

Midco,

Inc.,

6.50%,

03/31/29

(b)

.....

2,270

1,917,469

PTC,

Inc.,

4.00%,

02/15/28

(b)

..........

65

56,848

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(b)

1,934

1,764,183

Veritas

US,

Inc.,

7.50%,

09/01/25

(b)

......

245

187,632

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(b)

1,534

1,251,652

23,153,831

Specialty

Retail

—

0.9%

Arko

Corp.,

5.13%,

11/15/29

(b)

.........

67

52,260

Asbury

Automotive

Group,

Inc.

4.75%,

03/01/30

.................

51

39,830

5.00%,

02/15/32

(b)

................

696

535,962

Carvana

Co.

(b)

5.50%,

04/15/27

.................

208

113,360

10.25%,

05/01/30

................

123

82,103

eG

Global

Finance

plc,

6.75%,

02/07/25

(b)

..

1,418

1,279,064

Goldstory

SASU,

5.38%,

03/01/26

(d)

.....

EUR

100

83,304

Group

1

Automotive,

Inc.,

4.00%,

08/15/28

(b)

USD

44

35,429

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

(b)

..

77

58,570

JMH

Co.

Ltd.,

2.50%,

04/09/31

(d)

.......

400

323,172

LBM

Acquisition

LLC,

6.25%,

01/15/29

(b)

...

34

23,035

LCM

Investments

Holdings

II

LLC,

4.88%,

05/01/29

(b)

....................

601

465,394

Lowe's

Cos.,

Inc.

3.00%,

10/15/50

.................

4,146

2,538,796

5.63%,

04/15/53

.................

3,910

3,616,007

Murphy

Oil

USA,

Inc.,

4.75%,

09/15/29

....

109

96,465

Penske

Automotive

Group,

Inc.,

3.75%,

06/15/29

.....................

27

21,460

PetSmart,

Inc.,

7.75%,

02/15/29

(b)

.......

1,366

1,221,122

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

(b)

...............

50

41,373

SRS

Distribution,

Inc.

(b)

4.63%,

07/01/28

.................

1,393

1,196,573

6.13%,

07/01/29

.................

1,562

1,254,445

6.00%,

12/01/29

.................

113

90,120

Staples,

Inc.,

7.50%,

04/15/26

(b)

........

1,117

937,844

White

Cap

Buyer

LLC,

6.88%,

10/15/28

(b)

..

1,466

1,196,197

BlackRock

Income

Fund

Schedules

of

Investments

51

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Specialty

Retail

(continued)

White

Cap

Parent

LLC,

8.25%,

(8.25%

Cash

or

9.00%

PIK),

03/15/26

(b)(k)

...........

USD

102

$

86,415

Zhongsheng

Group

Holdings

Ltd.,

3.00%,

01/13/26

(d)

....................

400

352,200

15,740,500

Technology

Hardware,

Storage

&

Peripherals

—

0.0%

Lenovo

Group

Ltd.,

3.42%,

11/02/30

(d)

....

239

181,984

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

Crocs,

Inc.,

4.25%,

03/15/29

(b)

.........

104

82,680

European

TopSoho

SARL,

Series

SMCP,

4.00%,

09/21/21

(d)(e)(i)(l)

............

EUR

1,100

759,087

Kontoor

Brands,

Inc.,

4.13%,

11/15/29

(b)

...

USD

69

54,974

Levi

Strauss

&

Co.,

3.50%,

03/01/31

(b)

....

75

58,500

William

Carter

Co.

(The),

5.63%,

03/15/27

(b)

.

44

41,137

996,378

Thrifts

&

Mortgage

Finance

—

0.1%

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(b)

...

580

554,300

Home

Point

Capital,

Inc.,

5.00%,

02/01/26

(b)

.

136

85,170

Ladder

Capital

Finance

Holdings

LLLP,

4.25%,

02/01/27

(b)

....................

56

45,092

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

157

140,261

Nationstar

Mortgage

Holdings,

Inc.,

5.75%,

11/15/31

(b)

....................

71

52,069

Rocket

Mortgage

LLC,

2.88%,

10/15/26

(b)

..

454

372,280

1,249,172

Tobacco

—

1.0%

Altria

Group,

Inc.,

4.40%,

02/14/26

......

63

60,625

BAT

Capital

Corp.

2.26%,

03/25/28

.................

12,726

10,122,238

4.76%,

09/06/49

.................

10,798

7,359,416

17,542,279

Trading

Companies

&

Distributors

—

0.2%

Beacon

Roofing

Supply,

Inc.,

4.13%,

05/15/29

(b)

128

103,669

BOC

Aviation

Ltd.,

2.63%,

01/17/25

(d)

.....

500

468,285

Fortress

Transportation

&

Infrastructure

Investors

LLC

(b)

9.75%,

08/01/27

.................

59

57,691

5.50%,

05/01/28

.................

81

64,788

Foundation

Building

Materials,

Inc.,

6.00%,

03/01/29

(b)

....................

32

23,354

H&E

Equipment

Services,

Inc.,

3.88%,

12/15/28

(b)

....................

28

21,980

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(b)

....

182

163,800

Imola

Merger

Corp.,

4.75%,

05/15/29

(b)

....

847

714,572

United

Rentals

North

America,

Inc.,

5.25%,

01/15/30

.....................

11

9,955

WESCO

Distribution,

Inc.

(b)

7.13%,

06/15/25

.................

1,275

1,275,701

7.25%,

06/15/28

.................

356

348,685

3,252,480

Transportation

Infrastructure

—

0.0%

(d)

Autostrade

per

l'Italia

SpA,

2.00%,

01/15/30

EUR

100

73,146

Shanghai

Port

Group

BVI

Development

Co.

Ltd.,

1.50%,

07/13/25

.............

USD

400

361,740

434,886

Wireless

Telecommunication

Services

—

0.3%

Bharti

Airtel

Ltd.,

4.38%,

06/10/25

(d)

......

900

865,856

Connect

Finco

SARL,

6.75%,

10/01/26

(b)

...

1,746

1,526,968

Empresa

Nacional

de

Telecomunicaciones

SA

(d)

4.75%,

08/01/26

.................

367

341,769

3.05%,

09/14/32

.................

688

504,519

Security

Par

(000)

Par

(000)

Value

Wireless

Telecommunication

Services

(continued)

Globe

Telecom,

Inc.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.53%),

4.20%

(a)(d)(h)

..............

USD

675

$

593,916

Ligado

Networks

LLC,

15.50%,

(15.50%

Cash

or

15.50%

PIK),

11/01/23

(a)(b)(k)

.......

84

32,609

SoftBank

Group

Corp.

(d)

2.13%,

07/06/24

.................

EUR

100

89,920

4.75%,

07/30/25

.................

100

88,791

Sprint

Corp.,

7.63%,

03/01/26

.........

USD

116

119,983

T-Mobile

USA,

Inc.,

2.05%,

02/15/28

.....

1,922

1,594,883

Vmed

O2

UK

Financing

I

plc,

4.00%,

01/31/29

(d)

GBP

100

84,020

Vodafone

Group

plc,

(EUR

Swap

Annual

5

Year

+

3.00%),

2.63%,

08/27/80

(a)(d)

.......

EUR

100

83,794

5,927,028

Total

Corporate

Bonds

—

44.2%

(Cost:

$907,400,055)

.............................

783,336,342

Floating

Rate

Loan

Interests

Aerospace

&

Defense

—

0.4%

(a)

Atlas

CC

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.25%),

7.32%

,

 05/25/28

.................

USD

1,177

1,029,523

Atlas

CC

Acquisition

Corp.,

1st

Lien

Term

Loan

C,

(LIBOR

USD

3

Month

+

4.25%),

7.32%

,

 05/25/28

.................

240

209,548

Bleriot

US

Bidco,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 10/30/26

....

208

200,541

Cobham

Ultra

SeniorCo

SARL,

Facility

Term

Loan

B,

(LIBOR

USD

6

Month

+

3.75%),

7.06%

,

 08/03/29

.................

451

430,705

Dynasty

Acquisition

Co.,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 04/06/26

.................

537

494,254

Dynasty

Acquisition

Co.,

Inc.,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 04/06/26

.................

296

272,261

Peraton

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 02/01/28

2,167

2,049,919

Peraton

Corp.,

2nd

Lien

Term

Loan

B1,

(LIBOR

USD

1

Month

+

7.75%),

10.57%

,

 02/01/29

776

731,705

Setanta

Aircraft

Leasing

DAC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.00%),

5.67%

,

 11/05/28

.................

612

596,700

TransDigm,

Inc.,

Term

Loan

F,

(LIBOR

USD

3

Month

+

2.25%),

5.92%

,

 12/09/25

.....

1,008

964,045

6,979,201

Airlines

—

0.4%

(a)

AAdvantage

Loyalty

IP

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

7.46%

,

 04/20/28

1,286

1,243,411

Air

Canada,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.42%

,

 08/11/28

..........

1,313

1,246,285

American

Airlines,

Inc.,

Term

Loan

(LIBOR

USD

1

Month

+

1.75%),

4.83%, 06/27/25

...............

849

822,189

(LIBOR

USD

1

Month

+

1.75%),

4.87%, 01/29/27

...............

1,293

1,186,468

Kestrel

Bidco,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

5.99%

,

 12/11/26

......

486

426,445

Mileage

Plus

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

8.78%

,

 06/21/27

1,456

1,459,083

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

52

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Airlines

(continued)

United

AirLines,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

6.53%

,

 04/21/28

USD

1,021

$

972,427

7,356,308

Auto

Components

—

0.1%

(a)

Clarios

Global

LP,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 04/30/26

1,748

1,649,736

RealTruck

Group,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 01/31/28

14

12,275

1,662,011

Automobiles

—

0.1%

Dealer

Tire

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.25%),

7.37%

,

 12/12/25

(a)

....

859

834,755

Beverages

—

0.1%

(a)

Naked

Juice

LLC,

1st

Lien

Term

Loan,

(SOFR

3

Month

+

3.25%),

6.90%

,

 01/24/29

.....

729

666,998

Naked

Juice

LLC,

2nd

Lien

Term

Loan,

(SOFR

3

Month

+

6.00%),

9.65%

,

 01/24/30

....

1,233

1,115,873

1,782,871

Building

Products

—

0.2%

(a)

Cornerstone

Building

Brands,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.07%

,

 04/12/28

.................

172

141,188

CP

Atlas

Buyer,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

4.25%

-

6.62%

,

 11/23/27

.................

851

738,113

CP

Iris

Holdco

I,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 10/02/28

(f)

................

168

155,643

CP

Iris

Holdco

I,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan,

10/02/28

(f)(m)

............

34

31,291

CPG

International

LLC,

Term

Loan,

(SOFR

6

Month

+

2.50%),

4.09%

,

 04/28/29

.....

410

394,493

Jeld-Wen,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 07/28/28

.....

513

475,005

Wilsonart

LLC,

Term

Loan

E,

(LIBOR

USD

3

Month

+

3.25%),

6.93%

,

 12/31/26

.....

1,374

1,251,500

3,187,233

Capital

Markets

—

0.3%

(a)

Advisor

Group

Holdings,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.50%),

7.62%

,

 07/31/26

.................

780

740,090

Azalea

TopCo,

Inc.,

1st

Lien

Term

Loan

(LIBOR

USD

1

Month

+

3.50%),

6.62%, 07/24/26

...............

298

270,324

(LIBOR

USD

1

Month

+

3.75%),

6.87%, 07/24/26

...............

1,032

937,381

Castlelake

Aviation

One

DAC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

6.04%

,

 10/22/26

.................

976

942,112

Focus

Financial

Partners

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 06/30/28

.................

716

692,042

Ion

Trading

Finance

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

8.42%

,

 04/01/28

148

136,672

Mercury

Borrower,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

7.19%

,

 08/02/28

(f)

................

1,468

1,331,915

Security

Par

(000)

Par

(000)

Value

Capital

Markets

(continued)

Mercury

Borrower,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.50%),

10.25%

,

 08/02/29

................

USD

458

$

409,881

Sequa

Mezzanine

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.75%),

9.76%

,

 11/28/23

.................

282

281,253

5,741,670

Chemicals

—

0.4%

(a)

ARC

Falcon

I,

Inc.,

Delayed

Draw

Term

Loan,

09/30/28

(m)

.....................

51

47,336

ARC

Falcon

I,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 09/30/28

.....

350

321,817

Aruba

Investments

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.08%

,

 11/24/27

.................

308

283,270

Ascend

Performance

Materials

Operations

LLC,

Term

Loan,

(SOFR

6

Month

+

4.75%),

8.83%

,

 08/27/26

.................

853

833,569

CPC

Acquisition

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.42%

,

 12/29/27

.................

393

304,913

Discovery

Purchaser

Corp.,

Term

Loan,

08/04/29

(m)

.....................

547

499,138

Ecovyst

Catalyst

Technologies

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

5.31%

,

 06/09/28

.................

576

547,962

Element

Solutions,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 01/31/26

701

694,861

Herens

Holdco

SARL,

Facility

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 07/03/28

.................

322

285,645

Messer

Industries

GmbH,

Term

Loan

B1,

(LIBOR

USD

3

Month

+

2.50%),

6.17%

,

 03/02/26

.................

1,196

1,141,635

Momentive

Performance

Materials,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 05/15/24

...........

566

548,177

Nouryon

Finance

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 10/01/25

....

57

53,130

Oxea

Holding

Vier

GMBH,

Term

Loan

B2,

(LIBOR

USD

3

Month

+

3.25%),

7.00%

,

 10/14/24

.................

293

264,561

SCIH

Salt

Holdings,

Inc.,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

3

Month

+

4.00%),

6.81%

,

 03/16/27

.................

444

411,136

Sparta

US

HoldCo

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.38%

,

 08/02/28

.................

876

829,533

WR

Grace

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.44%

,

 09/22/28

599

559,755

7,626,438

Commercial

Services

&

Supplies

—

0.5%

(a)

Allied

Universal

Holdco

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 05/12/28

.................

1,051

921,440

Amentum

Government

Services

Holdings

LLC,

1st

Lien

Term

Loan,

(SOFR

6

Month

+

4.00%),

7.21%

-

7.56%

,

 02/15/29

(f)

.....

667

635,629

Aramark

Intermediate

HoldCo

Corp.,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 04/06/28

.................

1,151

1,124,288

BlackRock

Income

Fund

Schedules

of

Investments

53

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Asplundh

Tree

Expert

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 09/07/27

USD

1,243

$

1,208,866

Clean

Harbors,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 10/08/28

.....

—

(n)

340

Covanta

Holding

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 11/30/28

.

529

512,033

Covanta

Holding

Corp.,

Term

Loan

C,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 11/30/28

.

40

39,105

LABL,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 10/29/28

...........

602

541,450

PECF

USS

Intermediate

Holding

III

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

4.25%),

7.37%

,

 12/15/28

.................

611

519,710

Prime

Security

Services

Borrower

LLC,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

3

Month

+

2.75%),

6.50%

,

 09/23/26

...........

144

138,841

Tempo

Acquisition

LLC,

Term

Loan

B1,

(SOFR

1

Month

+

3.00%),

6.03%

,

 08/31/28

....

2,859

2,779,185

TruGreen

Ltd.

Partnership,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 11/02/27

.................

437

412,325

Vericast

Corp.,

Term

Loan,

(LIBOR

USD

3

Month

+

7.75%),

11.42%

,

 06/16/26

.....

144

99,820

Viad

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 07/30/28

...........

447

421,635

9,354,667

Communications

Equipment

—

0.1%

Viasat,

Inc.,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.65%

,

 03/02/29

(a)

..........

1,054

931,313

Construction

&

Engineering

—

0.1%

(a)

Brand

Energy

&

Infrastructure

Services,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

6.60%

-

7.92%

,

 06/21/24

...........

1,689

1,465,618

Pike

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 01/21/28

...........

394

381,379

USIC

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 05/12/28

.................

803

750,312

2,597,309

Construction

Materials

—

0.1%

(a)

American

Builders

&

Contractors

Supply

Co.,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 01/15/27

...........

784

757,580

New

AMI

I

LLC,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

6.00%),

9.03%

,

 03/08/29

(f)

.....

309

272,310

Oscar

AcquisitionCo

LLC,

Term

Loan

B,

(SOFR

3

Month

+

4.50%),

8.15%

,

 04/29/29

....

524

479,010

Standard

Industries,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

6.68%

,

 09/22/28

568

550,135

TAMKO

Building

Products

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

5.81%

-

6.67%

,

 05/29/26

.................

203

191,563

2,250,598

Security

Par

(000)

Par

(000)

Value

Containers

&

Packaging

—

0.3%

(a)

Charter

Next

Generation,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

6.56%

,

 12/01/27

.................

USD

2,910

$

2,755,118

Mauser

Packaging

Solutions

Holding

Co.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.38%

,

 04/03/24

.................

1,170

1,087,827

Pactiv

Evergreen,

Inc.,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 02/05/26

257

245,265

Pregis

TopCo

LLC,

1st

Lien

Term

Loan,

(SOFR

3

Month

+

4.00%),

6.81%

,

 07/31/26

....

146

138,643

Tosca

Services

LLC,

Term

Loan,

(SOFR

1

Month

+

3.50%),

6.65%

,

 08/18/27

.....

627

549,594

Trident

TPI

Holdings,

Inc.,

Delayed

Draw

Term

Loan

B3,

(LIBOR

USD

3

Month

+

0.00%),

4.00%

-

7.67%

,

 09/15/28

...........

77

72,852

Trident

TPI

Holdings,

Inc.,

Term

Loan

B3,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 09/15/28

.................

312

294,559

5,143,858

Distributors

—

0.0%

PAI

Holdco,

Inc.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

4.99%

,

 10/28/27

(a)

444

419,746

Diversified

Consumer

Services

—

0.4%

(a)

Ascend

Learning

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/11/28

.................

650

598,550

Ascend

Learning

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

8.87%

,

 12/10/29

.................

868

751,367

Bright

Horizons

Family

Solutions

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 11/24/28

.................

1,268

1,224,017

Sotheby's,

Term

Loan,

(LIBOR

USD

3

Month

+

4.50%),

7.01%

,

 01/15/27

...........

1,449

1,397,925

Spring

Education

Group,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

7.92%

,

 07/30/25

.................

296

281,337

Veritas

US,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

5.00%),

8.67%

,

 09/01/25

.....

1,511

1,192,666

Wand

Newco

3,

Inc.,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 02/05/26

.................

1,317

1,217,603

WCG

Purchaser

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

-

7.67%

,

 01/08/27

.................

431

404,165

7,067,630

Diversified

Financial

Services

—

0.5%

(a)

Alchemy

Copyrights

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.13%

,

 03/10/28

(f)

428

416,174

Belron

Finance

US

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

5.19%

,

 11/13/25

(f)

90

87,051

Belron

Group

SA,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

5.38%

,

 04/13/28

.....

1,007

975,989

Deerfield

Dakota

Holding

LLC,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

3.75%),

6.78%

,

 04/09/27

.................

3,484

3,280,878

LBM

Acquisition

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.12%

,

 12/17/27

.................

140

121,871

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

54

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Diversified

Financial

Services

(continued)

Lions

Gate

Capital

Holdings

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 03/24/25

.................

USD

722

$

694,561

Sotera

Health

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 12/11/26

.................

580

507,843

Travelport

Finance

SARL,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.00%),

10.42%

,

 05/29/26

................

619

430,621

Travelport

Finance

SARL,

Term

Loan,

(LIBOR

USD

3

Month

+

1.50%),

5.17% 02/28/25

.

504

497,617

UPC

Financing

Partnership,

Facility

Term

Loan

AX,

(LIBOR

USD

1

Month

+

2.93%),

5.74%

,

 01/31/29

.................

575

547,529

White

Cap

Supply

Holdings

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.78%

,

 10/19/27

.................

586

546,846

8,106,980

Diversified

Telecommunication

Services

—

0.5%

(a)

Altice

Financing

SA,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

5.26%

,

 07/15/25

.....

655

614,679

Altice

France

SA,

Term

Loan

B13,

(LIBOR

USD

3

Month

+

4.00%),

6.91%

,

 08/14/26

(f)

...

800

724,412

Cablevision

Lightpath

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.07%

,

 11/30/27

.

151

144,592

Connect

Finco

SARL,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/11/26

....

1,898

1,761,483

Consolidated

Communications,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

6.63%

,

 10/02/27

.................

601

517,787

Frontier

Communications

Holdings

LLC,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

7.44%

,

 05/01/28

.................

440

407,764

Iridium

Satellite

LLC,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 11/04/26

.

387

375,238

Level

3

Financing,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 03/01/27

386

366,286

Orbcomm,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

7.32%

-

7.37%

,

 09/01/28

.................

599

546,782

Radiate

Holdco

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 09/25/26

....

884

815,864

Virgin

Media

Bristol

LLC,

Facility

Term

Loan

Q,

(LIBOR

USD

1

Month

+

3.25%),

6.07%

,

 01/31/29

.................

710

685,787

Zayo

Group

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 03/09/27

2,278

1,896,865

8,857,539

Electric

Utilities

—

0.0%

(a)

Calpine

Construction

Finance

Co.

LP,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 01/15/25

.................

220

213,416

Edgewater

Generation

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 12/13/25

.................

377

329,437

542,853

Security

Par

(000)

Par

(000)

Value

Electrical

Equipment

—

0.0%

(a)

Arcline

FM

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

8.39%

,

 06/23/28

(f)

................

USD

583

$

538,830

AZZ,

Inc.,

Term

Loan,

(SOFR

3

Month

+

4.25%),

6.98%

-

7.38%

,

 05/13/29

......

283

274,550

813,380

Electronic

Equipment,

Instruments

&

Components

—

0.0%

Coherent

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.75%),

5.88%

,

 07/02/29

(a)

....

576

557,250

Energy

Equipment

&

Services

—

0.0%

(a)

Lealand

Finance

Co.

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 06/28/24

(f)

17

10,299

Lealand

Finance

Co.

BV,

Term

Loan,

(LIBOR

USD

1

Month

+

1.00%),

4.12%

,

 06/30/25

116

57,933

68,232

Entertainment

—

0.4%

(a)

AMC

Entertainment

Holdings,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.00%),

5.76%

,

 04/22/26

.................

908

708,433

Aristocrat

Technologies,

Inc.,

Term

Loan

B,

(SOFR

3

Month

+

2.25%),

5.90%

,

 05/24/29

107

105,609

City

Football

Group

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.48%

,

 07/21/28

587

556,943

Kingpin

Intermediate

Holdings

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 07/03/24

.................

608

585,464

Live

Nation

Entertainment,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

4.81%

,

 10/19/26

.................

1,452

1,364,516

Playtika

Holding

Corp.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 03/13/28

1,183

1,130,890

Renaissance

Holding

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 05/30/25

.................

36

33,729

SMG

US

Midco

2,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 01/23/25

.................

298

283,399

William

Morris

Endeavor

Entertainment

LLC,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 05/18/25

.....

1,599

1,522,067

WMG

Acquisition

Corp.,

Term

Loan

G,

(LIBOR

USD

1

Month

+

2.13%),

5.24%

,

 01/20/28

1,162

1,124,656

7,415,706

Equity

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

RHP

Hotel

Properties

LP,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 05/11/24

(a)

322

315,782

Food

&

Staples

Retailing

—

0.1%

US

Foods,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 09/13/26

(a)

....

1,150

1,114,427

Food

Products

—

0.4%

(a)

8th

Avenue

Food

&

Provisions,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/01/25

.................

653

569,859

B&G

Foods,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 10/10/26

....

112

105,700

Chobani

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 10/25/27

.....

1,497

1,359,844

Froneri

International

Ltd.,

Facility

1st

Lien

Term

Loan

B2,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 01/29/27

.................

1,160

1,092,157

BlackRock

Income

Fund

Schedules

of

Investments

55

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Food

Products

(continued)

H-Food

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.69%),

6.21%

,

 05/23/25

....

USD

113

$

87,340

Hostess

Brands

LLC,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

2.25%),

5.06%

-

5.37%

,

 08/03/25

.................

254

245,412

Sovos

Brands

Intermediate,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 06/08/28

.................

1,173

1,113,942

Triton

Water

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

7.17%

,

 03/31/28

.................

1,900

1,700,555

Utz

Quality

Foods

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.15%

,

 01/20/28

.................

1,155

1,119,107

7,393,916

Health

Care

Equipment

&

Supplies

—

0.2%

(a)

Chariot

Buyer

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 11/03/28

.

1,352

1,224,920

Femur

Buyer,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.50%),

8.17%

,

 03/05/26

326

288,656

Insulet

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 05/04/28

.....

286

277,688

Medline

Borrower

LP,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 10/23/28

....

2,629

2,412,552

4,203,816

Health

Care

Providers

&

Services

—

0.5%

(a)

CHG

Healthcare

Services,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 09/29/28

.................

1,023

980,439

CNT

Holding

I

Corp.,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

3.50%),

6.25%

,

 11/08/27

931

885,368

Electron

Bidco,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 11/01/28

.................

1,444

1,366,201

Envision

Healthcare

Corp.,

Term

Loan

(SOFR

3

Month

+

4.25%),

6.83%, 03/31/27

362

157,559

(SOFR

3

Month

+

7.88%),

10.53%, 03/31/27

287

274,392

EyeCare

Partners

LLC,

1st

Lien

Term

Loan

(LIBOR

USD

3

Month

+

3.75%),

7.42%, 02/18/27

...............

—

(n)

216

(LIBOR

USD

3

Month

+

3.75%),

7.42%, 11/15/28

...............

568

529,733

EyeCare

Partners

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

6.75%),

10.42%

,

 11/15/29

................

513

466,590

MED

ParentCo.

LP,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.25%),

7.37%

,

 08/31/26

.................

474

397,607

Medical

Solutions

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.38%

,

 11/01/28

.................

950

902,403

Medical

Solutions

Holdings,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

7.00%),

9.88%

,

 11/01/29

(f)

................

404

383,372

Medical

Solutions

Holdings,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan,

11/01/28

(m)

.......

149

141,534

Option

Care

Health,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 10/27/28

.................

540

526,876

PetVet

Care

Centers

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 02/14/25

.................

29

27,148

Security

Par

(000)

Par

(000)

Value

Health

Care

Providers

&

Services

(continued)

Vizient,

Inc.,

Term

Loan

B7,

(SOFR

1

Month

+

2.25%),

5.37%

,

 05/16/29

...........

USD

311

$

309,471

WP

CityMD

Bidco

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.92%

,

 12/22/28

983

938,036

8,286,945

Health

Care

Technology

—

0.1%

(a)

Polaris

Newco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 06/02/28

.................

1,180

1,086,434

Verscend

Holding

Corp.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 08/27/25

1,152

1,115,033

2,201,467

Hotels,

Restaurants

&

Leisure

—

0.7%

(a)

1011778

BC

Unlimited

Liability

Co.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 11/19/26

.................

1,154

1,101,442

Aimbridge

Acquisition

Co.,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 02/02/26

.................

120

105,643

Bally's

Corp.,

Facility

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.55%

,

 10/02/28

608

547,624

Caesars

Resort

Collection

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 12/23/24

.................

1,119

1,090,989

Carnival

Corp.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

5.88%

,

 06/30/25

.....

891

805,933

Churchill

Downs,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 03/17/28

638

617,006

Fertitta

Entertainment

LLC,

Term

Loan

B,

(SOFR

1

Month

+

4.00%),

7.03%

,

 01/27/29

1,906

1,765,431

Flutter

Entertainment

plc,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

5.89%

,

 07/21/26

779

748,617

Flutter

Entertainment

plc,

Term

Loan

B,

07/22/28

(m)

.....................

596

581,005

Four

Seasons

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 11/30/23

.................

474

470,974

Hilton

Worldwide

Finance

LLC,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

1.75%),

4.83%

,

 06/22/26

.................

213

205,749

IRB

Holding

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 02/05/25

....

1,151

1,110,566

Packers

Holdings

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.01%

,

 03/09/28

892

816,616

Penn

National

Gaming,

Inc.,

Facility

Term

Loan

B,

(SOFR

1

Month

+

2.75%),

5.88%

,

 05/03/29

.................

1,201

1,152,986

Scientific

Games

International,

Inc.,

Term

Loan

B,

(SOFR

1

Month

+

3.00%),

5.91%

,

 04/14/29

.................

396

384,088

Station

Casinos

LLC,

Facility

Term

Loan

B1,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 02/08/27

.................

574

547,876

Whatabrands

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 08/03/28

....

1,027

947,790

Wyndham

Hotels

&

Resorts,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 05/30/25

.................

218

212,271

13,212,606

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

56

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Household

Durables

—

0.2%

(a)

ACProducts

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

7.13%

-

7.92%

,

 05/17/28

.................

USD

788

$

578,673

Hunter

Douglas

Holding

BV,

Term

Loan

B1,

(SOFR

3

Month

+

3.50%),

6.34%

,

 02/26/29

1,101

900,774

Serta

Simmons

Bedding

LLC,

Term

Loan

(LIBOR

USD

1

Month

+

7.50%),

10.79%, 08/10/23

..............

251

182,606

Snap

One

Holdings

Corp.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.50%),

7.38%

,

 12/08/28

797

722,980

SWF

Holdings

I

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.60%

,

 10/06/28

.................

536

416,774

Weber-Stephen

Products

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 10/30/27

.................

809

653,223

3,455,030

Household

Products

—

0.1%

(a)

Diamond

(BC)

BV,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

5.56%

,

 09/29/28

.....

878

807,390

Spectrum

Brands,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 03/03/28

409

387,314

1,194,704

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

(a)

Calpine

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 08/12/26

.....

—

(n)

392

Constellation

Renewables

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

2.50%),

5.57%

,

 12/15/27

.................

775

757,469

757,861

Insurance

—

0.6%

(a)

Alliant

Holdings

Intermediate

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

3.50%),

6.49%

,

 11/05/27

.................

3,616

3,421,226

AmWINS

Group,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 02/19/28

....

1,181

1,127,524

AssuredPartners,

Inc.,

Term

Loan

(LIBOR

USD

1

Month

+

3.50%),

6.62%, 02/12/27

...............

1,187

1,121,306

Hub

International

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

5.77%

,

 04/25/25

....

688

660,503

Hub

International

Ltd.,

Term

Loan

B3,

(LIBOR

USD

3

Month

+

3.25%),

5.98%

,

 04/25/25

1,174

1,128,935

NFP

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 02/15/27

...........

329

308,090

Ryan

Specialty

Group

LLC,

Term

Loan,

(SOFR

1

Month

+

3.00%),

6.13%

,

 09/01/27

....

848

818,011

Sedgwick

Claims

Management

Services,

Inc.,

Term

Loan

(LIBOR

USD

1

Month

+

3.75%),

6.87%, 09/03/26

...............

737

702,352

(LIBOR

USD

1

Month

+

4.25%),

7.37%, 09/03/26

...............

212

203,469

USI,

Inc.,

Term

Loan

(LIBOR

USD

3

Month

+

2.75%),

6.42%, 05/16/24

...............

1,763

1,713,515

(LIBOR

USD

3

Month

+

3.25%),

6.92%, 12/02/26

...............

86

82,230

11,287,161

Security

Par

(000)

Par

(000)

Value

Interactive

Media

&

Services

—

0.3%

(a)

Acuris

Finance

US,

Inc.,

Term

Loan,

(SOFR

3

Month

+

4.00%),

7.70%

,

 02/16/28

.....

USD

287

$

274,311

Adevinta

ASA,

Facility

Term

Loan

B2,

(LIBOR

USD

3

Month

+

3.00%),

6.67%

,

 06/26/28

435

422,959

Arches

Buyer,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 12/06/27

.....

305

273,989

Camelot

US

Acquisition

1

Co.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 10/30/26

.................

2,151

2,075,664

GoodRx,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 10/10/25

....

298

284,028

Grab

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

4.50%),

7.62%

,

 01/29/26

.....

1,553

1,450,666

Research

Now

Group,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.50%),

8.84%

,

 12/20/24

.................

200

179,791

4,961,408

Internet

&

Direct

Marketing

Retail

—

0.1%

(a)(f)

Fanatics

Commerce

Intermediate

Holdco

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.06%

,

 11/24/28

.................

432

415,719

Pug

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 02/12/27

...........

777

672,466

Pug

LLC,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

4.25%),

7.37%

,

 02/12/27

..........

302

264,206

1,352,391

IT

Services

—

0.4%

(a)

Applied

Systems,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.50%),

9.17%

,

 09/19/25

.................

469

460,324

Asurion

LLC,

2nd

Lien

Term

Loan

B4,

(LIBOR

USD

1

Month

+

5.25%),

8.37%

,

 01/20/29

981

745,560

Asurion

LLC,

Term

Loan

B7,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 11/03/24

......

585

546,065

ConnectWise

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

7.17%

,

 09/29/28

.....

293

273,170

Epicor

Software

Corp.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

7.75%),

10.87%

,

 07/31/28

................

285

277,020

Epicor

Software

Corp.,

Term

Loan

C,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 07/30/27

456

426,037

FleetCor

Technologies

Operating

Co.

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 04/28/28

...........

1,169

1,124,273

Gainwell

Acquisition

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 10/01/27

.................

1,153

1,096,189

Go

Daddy

Operating

Co.

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 08/10/27

.................

571

552,219

Venga

Finance

SARL,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

7.82%

,

 06/28/29

(f)

...

212

195,179

Virtusa

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 02/11/28

......

147

137,770

VS

Buyer

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 02/28/27

.....

399

385,134

WEX,

Inc.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 03/31/28

..........

388

375,626

6,594,566

BlackRock

Income

Fund

Schedules

of

Investments

57

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Leisure

Products

—

0.1%

(a)

Fender

Musical

Instruments

Corp.,

Term

Loan,

(SOFR

1

Month

+

4.00%),

6.75%

,

 12/01/28

USD

609

$

516,198

Peloton

Interactive,

Inc.,

Term

Loan,

(SOFR

6

Month

+

6.50%),

8.35%

,

 05/25/27

.....

340

331,219

847,417

Life

Sciences

Tools

&

Services

—

0.4%

(a)

Avantor

Funding,

Inc.,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 11/08/27

.

1,481

1,439,089

Catalent

Pharma

Solutions,

Inc.,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

2.00%),

5.06%

,

 02/22/28

.................

1,418

1,403,362

eResearchTechnology,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.50%),

7.62%

,

 02/04/27

.................

1,177

1,095,720

ICON

plc,

Term

Loan

(LIBOR

USD

3

Month

+

2.25%),

5.94%, 07/03/28

...............

1,365

1,332,125

Iqvia,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 03/07/24

.....

58

58,018

Maravai

Intermediate

Holdings

LLC,

Term

Loan

B,

(SOFR

3

Month

+

3.00%),

5.55%

,

 10/19/27

.................

711

687,430

Phoenix

Newco,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 11/15/28

.................

1,579

1,504,320

7,520,064

Machinery

—

0.8%

(a)

Albion

Financing

3

SARL,

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

8.01%

,

 08/17/26

586

553,595

ASP

Blade

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 10/13/28

321

280,635

Clark

Equipment

Co.,

Term

Loan

B,

(SOFR

3

Month

+

2.50%),

6.15%

,

 04/20/29

.....

406

396,318

Columbus

McKinnon

Corp.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

6.44%

,

 05/14/28

376

366,982

Filtration

Group

Corp.,

Term

Loan

(LIBOR

USD

1

Month

+

3.00%),

6.12%, 03/31/25

...............

1,320

1,264,752

(LIBOR

USD

1

Month

+

3.50%),

6.62%, 10/21/28

...............

838

793,782

Fluidra

SA,

Term

Loan,

(SOFR

1

Month

+

2.00%),

5.13%

,

 01/29/29

...........

1,111

1,073,324

Gardner

Denver,

Inc.,

Term

Loan

B2,

(SOFR

1

Month

+

1.75%),

4.88%

,

 03/01/27

.....

538

521,101

Gates

Global

LLC,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 03/31/27

....

1,016

974,508

Husky

Injection

Molding

Systems

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

5.88%

,

 03/28/25

.................

1,636

1,461,602

Ingersoll-Rand

Services

Co.,

Term

Loan

B1,

(SOFR

1

Month

+

1.75%),

4.88%

,

 03/01/27

855

828,467

Madison

IAQ

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.82%

,

 06/21/28

.....

1,762

1,624,948

SPX

Flow,

Inc.,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.63%

,

 04/05/29

...........

803

740,979

TK

Elevator

Midco

GmbH,

Facility

Term

Loan

B1,

(LIBOR

USD

6

Month

+

3.50%),

6.87%

,

 07/30/27

.................

1,019

974,513

Vertiv

Group

Corp.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.75%),

5.88%

,

 03/02/27

....

1,475

1,400,455

Security

Par

(000)

Par

(000)

Value

Machinery

(continued)

Zurn

LLC,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 10/04/28

....

USD

185

$

181,672

13,437,633

Media

—

0.6%

AVSC

Holding

Corp.,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

3

Month

+

3.25%),

6.39%

,

 03/03/25

(a)

................

655

571,666

AVSC

Holding

Corp.,

1st

Lien

Term

Loan

B3,

15.00%

,

 10/15/26

(o)

...............

340

340,979

Cable

One,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 05/03/28

(a)

....

386

378,520

Charter

Communications

Operating

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 04/30/25

(a)

................

574

562,750

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

6.31%

,

 08/21/26

(a)

................

1,840

1,638,505

CMG

Media

Corp.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/17/26

(a)

................

299

279,075

Cogeco

Communications

Finance

LP,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.50%),

5.62%

,

 09/01/28

(a)

................

728

701,511

CSC

Holdings

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

2.50%),

5.32%

,

 04/15/27

(a)

....

1,027

958,436

DirectTV

Financing

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 08/02/27

(a)

1,308

1,215,323

Eagle

Broadband

Investments

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

6.69%

,

 11/12/27

(a)

................

291

276,845

EW

Scripps

Co.

(The),

Term

Loan

B3,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 01/07/28

(a)

380

366,846

Learfield

Communications

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 12/01/23

(a)

................

533

435,199

Sinclair

Television

Group,

Inc.,

Term

Loan

B4,

(SOFR

1

Month

+

3.75%),

6.88%

,

 04/21/29

(a)

................

842

794,208

Trader

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.11%

,

 09/28/23

(a)(f)

..

1,712

1,643,275

Voyage

Digital

Ltd.,

1st

Lien

Term

Loan,

(SOFR

3

Month

+

4.50%),

7.26%

,

 05/11/29

(a)(f)

..

429

416,696

Ziggo

Financing

Partnership,

Facility

Term

Loan

I,

(LIBOR

USD

1

Month

+

2.50%),

5.32%

,

 04/30/28

(a)

................

490

466,898

11,046,732

Metals

&

Mining

—

0.1%

Equinox

Holdings,

Inc.,

1st

Lien

Term

Loan

B1,

(LIBOR

USD

3

Month

+

3.00%),

6.67%

,

 03/08/24

(a)

................

1,917

1,446,287

Multiline

Retail

—

0.0%

Woof

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.32%

,

 12/21/27

(a)(f)

...............

398

375,408

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

58

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Oil,

Gas

&

Consumable

Fuels

—

0.2%

(a)

Ascent

Resources

Utica

Holdings

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

9.00%),

11.46%

,

 11/01/25

...........

USD

244

$

255,793

Freeport

LNG

investments

LLLP,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

6.21%

,

 12/21/28

.................

1,493

1,379,243

M6

ETX

Holdings

II

Midco

LLC,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.62%

,

 09/19/29

99

97,020

Medallion

Midland

Acquisition

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.42%

,

 10/18/28

.................

869

838,380

Oryx

Midstream

Services

Permian

Basin

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.21%

,

 10/05/28

.................

1,159

1,122,113

3,692,549

Personal

Products

—

0.3%

(a)

Rainbow

Midco

Ltd.,

Term

Loan,

(EURIBOR

6

Month

+

3.75%),

0.00%

-

15.00%

,

 01/01/28

(f)

...............

EUR

2,438

2,347,067

Sunshine

Luxembourg

VII

SARL,

Facility

Term

Loan

B3,

(LIBOR

USD

3

Month

+

3.75%),

7.42%

,

 10/01/26

.................

USD

3,661

3,397,784

5,744,851

Pharmaceuticals

—

0.3%

(a)

Amneal

Pharmaceuticals

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.63%

-

7.19%

,

 05/04/25

.................

1,270

1,052,033

Bausch

Health

Cos.,

Inc.,

Term

Loan

B,

(SOFR

1

Month

+

5.25%),

8.10%

,

 02/01/27

....

576

440,869

Elanco

Animal

Health,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

1.75%),

4.88%

,

 08/01/27

1,155

1,096,646

Grifols

Worldwide

Operations

Ltd.,

Term

Loan

B,

(LIBOR

USD

1

Month

+

2.00%),

5.12%

,

 11/15/27

.................

255

242,008

Jazz

Pharmaceuticals

plc,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 05/05/28

1,032

996,359

Organon

&

Co.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

6.19%

,

 06/02/28

.....

1,168

1,138,866

Precision

Medicine

Group

LLC,

Delayed

Draw

Term

Loan,

11/18/27

(f)(m)

............

43

39,926

Precision

Medicine

Group

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.00%),

6.67%

,

 11/18/27

(f)

................

1,013

934,592

5,941,299

Professional

Services

—

0.5%

(a)

AlixPartners

LLP,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 02/04/28

.....

572

548,366

CoreLogic,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.63%

,

 06/02/28

2,287

1,709,670

Dun

&

Bradstreet

Corp.

(The),

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.33%

,

 02/06/26

.................

140

135,327

Dun

&

Bradstreet

Corp.

(The),

Term

Loan

B2,

(SOFR

1

Month

+

3.25%),

6.28%

,

 01/18/29

2,757

2,653,856

Element

Materials

Technology

Group

US

Holdings,

Inc.,

Delayed

Draw

1st

Lien

Term

Loan

B,

(SOFR

3

Month

+

4.25%),

0.00%

,

 06/22/29

.................

321

300,343

Element

Materials

Technology

Group

US

Holdings,

Inc.,

Term

Loan

B,

(SOFR

3

Month

+

4.25%),

7.90%

,

 06/22/29

..........

695

650,744

Security

Par

(000)

Par

(000)

Value

Professional

Services

(continued)

Galaxy

US

Opco,

Inc.,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

4.75%),

7.78%

,

 04/29/29

(f)

USD

1,201

$

1,125,936

Trans

Union

LLC,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 11/16/26

....

423

407,360

Trans

Union

LLC,

Term

Loan

B6,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 12/01/28

....

1,718

1,661,138

9,192,740

Real

Estate

Management

&

Development

—

0.1%

Cushman

&

Wakefield

US

Borrower

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 08/21/25

(a)

................

1,299

1,239,616

Road

&

Rail

—

0.2%

(a)

AIT

Worldwide

Logistics

Holdings,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

7.04%

,

 04/06/28

.................

283

258,023

Avis

Budget

Car

Rental

LLC,

Term

Loan

B,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 08/06/27

.................

592

557,574

Genesee

&

Wyoming,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.00%),

5.67%

,

 12/30/26

284

275,894

SIRVA

Worldwide,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.50%),

8.31%

-

9.17%

,

 08/04/25

.................

327

294,586

Uber

Technologies,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.57%

,

 02/25/27

1,549

1,507,032

2,893,109

Semiconductors

&

Semiconductor

Equipment

—

0.0%

Synaptics,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.25%),

4.36%

,

 12/02/28

(a)

....

192

189,530

Software

—

1.7%

(a)

Athenahealth

Group,

Inc.,

Delayed

Draw

Term

Loan,

02/15/29

(m)

.................

213

190,311

Athenahealth

Group,

Inc.,

Term

Loan,

(SOFR

1

Month

+

3.50%),

6.58%

,

 02/15/29

.....

1,253

1,119,984

Barracuda

Networks,

Inc.,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.53%

,

 08/15/29

474

444,801

Boxer

Parent

Co.,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/02/25

871

823,124

CCC

Intelligent

Solutions,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

1.25%),

4.37%

,

 09/21/28

.................

721

695,360

Central

Parent,

Inc.,

1st

Lien

Term

Loan,

(SOFR

3

Month

+

4.50%),

8.11%

,

 07/06/29

492

473,048

Cloudera,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/08/28

(f)

1,040

910,410

Cloudera,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.00%),

9.12%

,

 10/08/29

(f)

466

391,440

Cornerstone

OnDemand,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/16/28

(f)

................

601

501,693

Delta

Topco,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

5.84%

,

 12/01/27

714

644,829

Delta

Topco,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

7.25%),

9.34%

,

 12/01/28

184

161,000

Greeneden

US

Holdings

I

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 12/01/27

.................

2,860

2,716,235

Helios

Software

Holdings,

Inc.,

Term

Loan,

(SOFR

3

Month

+

3.75%),

7.45%

,

 03/11/28

519

489,484

Informatica

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.88%

,

 10/27/28

.....

1,581

1,530,377

BlackRock

Income

Fund

Schedules

of

Investments

59

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Software

(continued)

Instructure

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

2.75%),

6.12%

,

 10/30/28

(f)

USD

197

$

190,655

Magenta

Buyer

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.75%),

7.87%

,

 07/27/28

.................

882

793,668

Magenta

Buyer

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

8.25%),

11.37%

,

 07/27/29

................

593

542,795

McAfee

Corp.,

Term

Loan

B1,

(SOFR

1

Month

+

3.75%),

6.87%

,

 03/01/29

..........

1,607

1,461,082

MH

Sub

I

LLC,

1st

Lien

Term

Loan

(LIBOR

USD

1

Month

+

3.75%),

6.87%, 09/13/24

...............

2,986

2,838,748

MH

Sub

I

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

6.25%),

9.28%

,

 02/23/29

614

573,606

Netsmart,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 10/01/27

287

273,001

Planview

Parent,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.67%

,

 12/17/27

.................

582

549,752

Proofpoint,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.32%

,

 08/31/28

1,753

1,642,350

RealPage,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 04/24/28

2,915

2,726,214

Severin

Acquisition

LLC,

1st

Lien

Term

Loan,

(SOFR

1

Month

+

3.00%),

6.03%

,

 08/01/25

777

753,191

Sophia

LP,

1st

Lien

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

7.17%

,

 10/07/27

....

1,160

1,114,079

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B3,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 04/16/25

.................

231

222,882

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 04/16/25

.................

187

180,897

TIBCO

Software,

Inc.,

Term

Loan

B,

(SOFR

1

Month

+

4.50%),

8.15%

,

 03/30/29

.....

1,879

1,683,926

UKG,

Inc.,

1st

Lien

Term

Loan

(LIBOR

USD

3

Month

+

3.25%),

7.00%, 05/04/26

...............

1,498

1,421,469

(LIBOR

USD

1

Month

+

3.75%),

6.87%, 05/04/26

...............

235

223,081

UKG,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

9.00%

,

 05/03/27

.....

1,038

975,767

Voyage

Australia

Pty

Ltd.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.21%

,

 07/20/28

.................

198

190,056

ZoomInfo

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 02/02/26

243

239,233

29,688,548

Specialty

Retail

—

0.3%

(a)

EG

Group

Ltd.,

Facility

Term

Loan,

(LIBOR

USD

3

Month

+

4.25%),

7.92%

,

 03/31/26

738

687,457

Mavis

Tire

Express

Services

Topco

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

4.00%),

7.25%

,

 05/04/28

...........

1,170

1,095,063

New

SK

Holdco

Sub

LLC,

Term

Loan,

(SOFR

1

Month

+

6.75%),

9.70%

,

 06/30/27

.....

1,527

1,369,532

PetSmart

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 02/11/28

......

1,457

1,375,306

Restoration

Hardware,

Inc.,

Term

Loan

(LIBOR

USD

1

Month

+

2.50%),

5.62%, 10/20/28

...............

121

107,219

(SOFR

1

Month

+

3.25%),

6.38%, 10/20/28

646

586,445

Security

Par

(000)

Par

(000)

Value

Specialty

Retail

(continued)

RVR

Dealership

Holdings

LLC,

Term

Loan,

(SOFR

1

Month

+

3.75%),

6.87%

,

 02/08/28

USD

305

$

268,334

5,489,356

Technology

Hardware,

Storage

&

Peripherals

—

0.0%

Electronics

for

Imaging,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 07/23/26

(a)

................

315

251,928

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

Crocs,

Inc.,

Term

Loan,

(SOFR

6

Month

+

3.50%),

7.20%

-

7.73%

,

 02/20/29

(a)

.....

892

837,453

Trading

Companies

&

Distributors

—

0.3%

(a)

Beacon

Roofing

Supply,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

2.25%),

5.37%

,

 05/19/28

.................

725

698,205

Core

&

Main

LP,

Term

Loan

B,

(LIBOR

USD

3

Month

+

2.50%),

4.32%

-

5.58%

,

 07/27/28

1,736

1,655,364

Foundation

Building

Materials,

Inc.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

3.25%),

6.06%

,

 01/31/28

.................

448

402,642

SRS

Distribution,

Inc.,

Term

Loan

(SOFR

3

Month

+

3.50%),

6.18%, 06/02/28

320

293,325

(LIBOR

USD

3

Month

+

3.50%),

6.31%, 06/02/28

...............

1,732

1,594,701

TMK

Hawk

Parent

Corp.,

Term

Loan

A,

(LIBOR

USD

3

Month

+

7.50%),

10.57%

,

 05/30/24

(f)

231

212,078

TMK

Hawk

Parent

Corp.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

6.57%

,

 08/28/24

(f)

739

387,776

5,244,091

Transportation

Infrastructure

—

0.1%

(a)

KKR

Apple

Bidco

LLC,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

2.75%),

5.87%

,

 09/22/28

.................

277

264,322

KKR

Apple

Bidco

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

8.87%

,

 09/21/29

.................

274

261,212

OLA

Netherlands

BV,

Term

Loan,

(SOFR

1

Month

+

6.25%),

9.20%

,

 12/15/26

.....

428

406,057

931,591

Wireless

Telecommunication

Services

—

0.1%

(a)

Digicel

International

Finance

Ltd.,

1st

Lien

Term

Loan

B,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 05/27/24

.................

1,063

945,609

Gogo

Intermediate

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

6.56%

,

 04/30/28

.................

393

380,908

SBA

Senior

Finance

II

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 04/11/25

.

286

277,682

1,604,199

Total

Floating

Rate

Loan

Interests

—

14.8%

(Cost:

$279,586,434)

.............................

263,244,029

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

60

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Foreign

Agency

Obligations

Chile

—

0.1%

(d)

Corp.

Nacional

del

Cobre

de

Chile,

3.63%

,

08/01/27

......................

USD

1,163

$

1,060,002

Empresa

Nacional

del

Petroleo,

3.45%

,

09/16/31

......................

692

539,890

1,599,892

China

—

0.0%

Industrial

&

Commercial

Bank

of

China

Ltd.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.37%),

3.20%

(a)

(d)(h)

..........................

470

430,050

Colombia

—

0.1%

Ecopetrol

SA

6.88%,

04/29/30

.................

1,284

1,078,560

5.88%,

05/28/45

.................

190

113,762

1,192,322

France

—

0.0%

Electricite

de

France

SA,

(EUR

Swap

Annual

5

Year

+

3.97%),

3.38%

(a)(d)(h)

..........

EUR

200

132,919

Hong

Kong

—

0.0%

Airport

Authority,

2.50%

,

01/12/32

(d)

.......

USD

300

246,285

India

—

0.1%

(d)

Export-Import

Bank

of

India,

3.38%

,

08/05/26

400

369,794

Indian

Railway

Finance

Corp.

Ltd.,

3.57%

,

01/21/32

......................

400

319,075

Oil

India

Ltd.,

5.13%

,

02/04/29

..........

200

187,600

Power

Finance

Corp.

Ltd.,

3.95%

,

04/23/30

.

500

417,125

1,293,594

Indonesia

—

0.1%

Bank

Mandiri

Persero

Tbk.

PT,

3.75%

,

04/11/24

(d)

.....................

200

193,975

Pertamina

Persero

PT

(d)

4.30%,

05/20/23

.................

569

564,590

2.30%,

02/09/31

.................

1,350

1,019,399

4.70%,

07/30/49

.................

550

408,822

4.18%,

01/21/50

.................

200

137,662

2,324,448

Mexico

—

0.0%

Petroleos

Mexicanos

6.50%,

03/13/27

.................

461

386,041

5.35%,

02/12/28

.................

140

106,036

492,077

Panama

—

0.1%

Aeropuerto

Internacional

de

Tocumen

SA,

5.13%

,

08/11/61

(b)

................

678

482,990

Banco

Latinoamericano

de

Comercio

Exterior

SA,

2.38%

,

09/14/25

(b)

.............

858

778,635

Empresa

de

Transmision

Electrica

SA,

5.13%

,

05/02/49

(d)

.....................

1,139

850,193

2,111,818

Peru

—

0.0%

Petroleos

del

Peru

SA,

4.75%

,

06/19/32

(d)

..

843

594,315

Qatar

—

0.0%

Qatar

Energy,

3.13%

,

07/12/41

(d)

........

200

145,162

Security

Par

(000)

Par

(000)

Value

Saudi

Arabia

—

0.1%

Saudi

Arabian

Oil

Co.

3.50%,

04/16/29

(d)

................

USD

1,181

$

1,070,281

3.50%,

11/24/70

(b)

................

760

490,200

1,560,481

South

Korea

—

0.3%

Export-Import

Bank

of

Korea

3.63%,

11/27/23

.................

1,300

1,286,675

0.63%,

06/29/24

.................

1,000

933,630

Korea

Development

Bank

(The),

3.75%

,

01/22/24

......................

1,000

988,000

Korea

Electric

Power

Corp.

(d)

3.63%,

06/14/25

.................

200

191,932

5.50%,

04/06/28

.................

355

354,856

Korea

Gas

Corp.,

1.13%

,

07/13/26

(d)

......

500

432,110

4,187,203

United

Arab

Emirates

—

0.1%

Abu

Dhabi

National

Energy

Co.

PJSC,

2.00%

,

04/29/28

(b)

.....................

455

384,703

DP

World

Crescent

Ltd.,

3.75%

,

01/30/30

(d)

.

1,242

1,112,599

1,497,302

Total

Foreign

Agency

Obligations

—

1.0%

(Cost:

$20,867,658)

..............................

17,807,868

Foreign

Government

Obligations

China

—

0.0%

People's

Republic

of

China,

2.63%

,

11/02/27

(d)

500

462,995

India

—

0.0%

Bharat

Petroleum

Corp.

Ltd.,

4.00%

,

05/08/25

(d)

200

192,287

Indonesia

—

0.6%

(d)

Bank

Negara

Indonesia

Persero

Tbk.

PT,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.47%),

4.30%

(a)(h)

....

350

280,038

Pelabuhan

Indonesia

Persero

PT,

4.25%

,

05/05/25

......................

300

288,033

Perusahaan

Listrik

Negara

PT

(d)

4.13%,

05/15/27

.................

700

645,330

6.25%,

01/25/49

.................

650

534,950

Perusahaan

Penerbit

SBSN

Indonesia

III

(d)

2.30%,

06/23/25

.................

1,000

935,110

4.40%,

06/06/27

.................

1,125

1,080,000

2.80%,

06/23/30

.................

1,600

1,347,800

Republic

of

Indonesia

4.13%,

01/15/25

(d)

................

500

489,000

2.85%,

02/14/30

.................

2,000

1,709,125

5.25%,

01/17/42

(d)

................

1,400

1,265,075

4.63%,

04/15/43

(d)

................

500

421,305

4.75%,

07/18/47

(d)

................

1,400

1,178,013

5.45%,

09/20/52

.................

225

208,712

10,382,491

Malaysia

—

0.0%

Malaysia

Wakala

Sukuk

Bhd.,

3.08%

,

04/28/51

(d)

.....................

300

224,963

Mongolia

—

0.0%

State

of

Mongolia,

5.13%

,

04/07/26

(d)

.....

539

417,784

Pakistan

—

0.0%

Islamic

Republic

of

Pakistan,

6.00%

,

04/08/26

(d)

860

326,895

BlackRock

Income

Fund

Schedules

of

Investments

61

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Philippines

—

0.1%

Republic

of

Philippines

1.95%,

01/06/32

.................

USD

400

$

308,044

3.70%,

03/01/41

.................

1,300

994,643

Republic

of

the

Philippines,

2.65%

,

12/10/45

300

185,283

1,487,970

Sri

Lanka

—

0.1%

Democratic

Socialist

Republic

of

Sri

Lanka

(d)(e)(l)

6.35%,

06/28/24

.................

819

200,297

6.83%,

07/18/26

.................

1,218

304,728

505,025

Total

Foreign

Government

Obligations

—

0.8%

(Cost:

$17,690,046)

..............................

14,000,410

Shares

Shares

Investment

Companies

Invesco

Senior

Loan

ETF

.............

91,531

1,848,011

iShares

0-5

Year

High

Yield

Corporate

Bond

ETF

(p)

........................

530,200

21,176,188

iShares

Floating

Rate

Bond

ETF

(p)

.......

308,079

15,487,132

Total

Investment

Companies

—

2.2%

(Cost:

$42,360,108)

..............................

38,511,331

Par

(000)

Par

(000)

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

0.1%

Alternative

Loan

Trust

Series

2006-OA11,

Class

A1B,

(LIBOR

USD

1

Month

+

0.38%),

3.46%,

09/25/46

(a)

.

1,460

1,367,891

Series

2007-3T1,

Class

1A1,

6.00%,

04/25/37

....................

1,713

869,228

2,237,119

Commercial

Mortgage-Backed

Securities

—

0.6%

BX

Commercial

Mortgage

Trust,

Series

2019-XL,

Class

G,

(LIBOR

USD

1

Month

+

2.30%),

5.12%,

10/15/36

(a)(b)

.........

2,550

2,441,493

Citigroup

Commercial

Mortgage

Trust,

Series

2016-GC37,

Class

D,

2.79%,

04/10/49

(b)

.

1,000

755,822

Commercial

Mortgage

Trust,

Series

2016-

667M,

Class

D,

3.28%,

10/10/36

(a)(b)

....

1,000

779,937

CSAIL

Commercial

Mortgage

Trust,

Series

2019-C17,

Class

C,

3.93%,

09/15/52

(f)

...

2,158

1,868,694

DBUBS

Mortgage

Trust,

Series

2017-BRBK,

Class

D,

3.65%,

10/10/34

(a)(b)

.........

990

898,346

Hudson

Yards

Mortgage

Trust,

Series

2019-

55HY,

Class

F,

3.04%,

12/10/41

(a)(b)

.....

1,343

950,736

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust,

Series

2015-C23,

Class

D,

4.28%,

07/15/50

(a)(b)

....................

310

267,296

Velocity

Commercial

Capital

Loan

Trust

(a)(b)

Series

2019-3,

Class

M2,

3.28%,

10/25/49

2,209

1,989,980

Series

2019-3,

Class

M3,

3.38%,

10/25/49

662

580,057

Wells

Fargo

Commercial

Mortgage

Trust,

Series

2015-C30,

Class

C,

4.65%,

09/15/58

(a)

.....................

1,000

920,475

11,452,836

Security

Par

(000)

Par

(000)

Value

Interest

Only

Commercial

Mortgage-Backed

Securities

—

0.1%

(a)

Benchmark

Mortgage

Trust,

Series

2019-B13,

Class

XA,

1.26%,

08/15/57

..........

USD

25,395

$

1,301,971

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust,

Series

2016-JP3,

Class

XC,

0.75%,

08/15/49

(b)

.............

8,700

205,505

1,507,476

Total

Non-Agency

Mortgage-Backed

Securities

—

0.8%

(Cost:

$17,293,409)

..............................

15,197,431

Beneficial

Interest

(000)

Other

Interests

(q)

Capital

Markets

—

0.0%

(f)

Millennium

Corp.

Claim

...............

393

—

Millennium

Lender

Claim

..............

418

—

Total

Other

Interests

—

0.0%

(Cost:

$—)

....................................

—

Par

(000)

Pa

r

(

000)

Preferred

Securities

Capital

Trusts

—

1.3%

Banks

—

0.6%

(a)(h)

Citigroup,

Inc.,

Series

W,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.60%),

4.00%

.................

4,130

3,479,525

JPMorgan

Chase

&

Co.

Series

FF,

(SOFR

6

Month

+

3.38%),

5.00%

125

112,719

Series

HH,

(SOFR

6

Month

+

3.13%),

4.60%

......................

180

156,798

PNC

Financial

Services

Group,

Inc.

(The),

Series

V,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.24%),

6.20%

........................

175

165,375

SVB

Financial

Group,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.06%),

4.10%

..................

9,298

6,340,472

Wells

Fargo

&

Co.,

Series

BB,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.45%),

3.90%

.............

132

111,622

10,366,511

Capital

Markets

—

0.0%

(a)(h)

Charles

Schwab

Corp.

(The),

Series

H,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%),

4.00%

.....

284

208,622

Goldman

Sachs

Group,

Inc.

(The),

Series

R,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%),

4.95%

87

78,735

287,357

Consumer

Finance

—

0.3%

(a)(h)

Ally

Financial,

Inc.,

Series

B,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.87%),

4.70%

.............

7,350

5,729,396

General

Motors

Financial

Co.,

Inc.,

Series

C,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.00%),

5.70%

61

52,284

5,781,680

Electric

Utilities

—

0.3%

Edison

International,

Series

A,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.70%),

5.38%

(a)(h)

...........

4,906

4,035,185

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

62

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

x

Security

Par

(000)

Par

(000)

Value

Independent

Power

and

Renewable

Electricity

Producers

—

0.0%

Vistra

Corp.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.74%),

7.00%

(a)(b)(h)

.....................

USD

169

$

147,539

Oil,

Gas

&

Consumable

Fuels

—

0.1%

Energy

Transfer

LP,

Series

G,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.31%),

7.13%

(a)(h)

...........

2,070

1,700,596

Total

Capital

Trusts

—

1.3%

(Cost:

$26,660,730)

..............................

22,318,868

Shares

Shares

Preferred

Stocks

—

0.0%

Thrifts

&

Mortgage

Finance

—

0.0%

CF-B

L2

(D)

LLC,

(Acquired

04/08/15-12/15/15,

cost

$56,330)

(e)(g)

.................

57,545

964

Total

Preferred

Stocks

—

0.0%

(Cost:

$56,330)

................................

964

Total

Preferred

Securities

—

1.3%

(Cost:

$26,717,060)

..............................

22,319,832

Par

(000)

Par

(000)

U.S.

Government

Sponsored

Agency

Securities

—

0.1%

Collateralized

Mortgage

Obligations

—

0.1%

Federal

Home

Loan

Mortgage

Corp.

Structured

Agency

Credit

Risk

Debt

Variable

Rate

Notes,

Series

2018-DNA1,

Class

B1,

(LIBOR

USD

1

Month

+

3.15%),

6.23%, 07/25/30

(a)

................

1,500

1,459,408

Total

U.S.

Government

Sponsored

Agency

Securities

—

0.1%

(Cost:

$1,500,000)

..............................

1,459,408

U.S.

Treasury

Obligations

U.S.

Treasury

Notes

1.50%, 02/29/24

.................

22,334

21,477,282

3.25%, 08/31/24

.................

240,480

236,140,086

3.13%, 08/31/27

.................

96,000

92,085,000

1.25%, 09/30/28

(r)

................

41,932

35,692,977

Total

U.S.

Treasury

Obligations

—

21.7%

(Cost:

$396,770,133)

.............................

385,395,345

Shares

Shares

Warrants

Diversified

Consumer

Services

—

0.0%

Service

King

Midas

International

(Issued/

Exercisable

07/14/22,

1

Share

for

1

Warrant,

Expires

06/30/27,

Strike

Price

USD

10.00)

(e)

(f)

............................

1,799

—

Security

Shares

Shares

Value

Oil,

Gas

&

Consumable

Fuels

—

0.0%

California

Resources

Corp.

(Issued/Exercisable

10/23/20,

1

Share

for

1

Warrant,

Expires

10/27/24,

Strike

Price

USD

36.00)

(e)

....

495

$

5,148

Total

Warrants

—

0.0%

(Cost:

$—)

....................................

5,148

Total

Long-Term

Investments

—

91.2%

(Cost:

$1,795,197,158)

...........................

1,618,313,579

Short-Term

Securities

Money

Market

Funds

—

5.7%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(p)(s)

.................

101,941,923

101,941,923

Total

Short-Term

Securities

—

5.7%

(Cost:

$101,941,923)

.............................

101,941,923

Total

Options

Purchased

—

0.0%

(Cost:

$33,791)

................................

35,164

Total

Investments

Before

Options

Written

—

96.9%

(Cost:

$1,897,172,872

)

...........................

1,720,290,666

Total

Options

Written

—

(0.3)%

(Premium

Received

—

$(3,423,368))

..................

(6,244,173)

Total

Investments

Net

of

Options

Written

—

96.6%

(Cost:

$1,893,749,504

)

...........................

1,714,046,493

Other

Assets

Less

Liabilities

—

3.4%

...................

59,606,519

Net

Assets

—

100.0%

..............................

$

1,773,653,012

BlackRock

Income

Fund

Schedules

of

Investments

63

Schedule

of

Investments

(continued)

September

30,

2022

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(d)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(e)

Non-income

producing

security.

(f)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(g)

Restricted

security

as

to

resale,

excluding

144A

securities.

The

Fund

held

restricted

securities

with

a

current

value

of

$131,634,

representing

less

than

0.01%

of

its

net

assets

as

of

period

end,

and

an

original

cost

of

$332,657.

(h)

Perpetual

security

with

no

stated

maturity

date.

(i)

Convertible

security.

(j)

Zero-coupon

bond.

(k)

Payment-in-kind

security

which

may

pay

interest/dividends

in

additional

par/shares

and/or

in

cash.

Rates

shown

are

the

current

rate

and

possible

payment

rates.

(l)

Issuer

filed

for

bankruptcy

and/or

is

in

default.

(m)

Represents

an

unsettled

loan

commitment

at

period

end.

Certain

details

associated

with

this

purchase

are

not

known

prior

to

the

settlement

date,

including

coupon

rate.

(n)

Rounds

to

less

than

1,000.

(o)

Fixed

rate.

(p)

Affiliate

of

the

Fund.

(q)

Other

interests

represent

beneficial

interests

in

liquidation

trusts

and

other

reorganization

or

private

entities.

(r)

All

or

a

portion

of

the

security

has

been

pledged

as

collateral

in

connection

with

outstanding

OTC

derivatives.

(s)

Annualized

7-day

yield

as

of

period

end.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

518,858,639

$

—

$

(416,916,716)

(a)

$

—

$

—

$

101,941,923

101,941,923

$

839,223

$

—

iShares

0-5

Year

High

Yield

Corporate

Bond

ETF

......

24,230,140

—

—

—

(3,053,952)

21,176,188

530,200

1,153,209

—

iShares

Floating

Rate

Bond

ETF

15,662,737

—

—

—

(175,605)

15,487,132

308,079

127,191

—

iShares

iBoxx

$

High

Yield

Corporate

Bond

ETF

(b)

.....

—

7,938,463

(7,890,193)

(48,270)

—

—

—

30,823

—

$

(48,270)

$

(3,229,557)

$

138,605,243

$

2,150,446

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

(b)

As

of

period

end,

the

entity

is

no

longer

held.

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

64

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

10

Year

Note

...................................................

611

12/20/22

$

68,470

$

(2,015,735)

U.S.

Treasury

Long

Bond

....................................................

660

12/20/22

83,511

(7,024,839)

U.S.

Treasury

Ultra

Bond

....................................................

356

12/20/22

48,661

(3,252,282)

U.S.

Treasury

2

Year

Note

....................................................

51

12/30/22

10,471

(4,846)

U.S.

Treasury

5

Year

Note

....................................................

3,880

12/30/22

416,888

(14,397,452)

3

Month

SOFR

...........................................................

1,864

03/14/23

445,939

(14,962,570)

(41,657,724)

Short

Contracts

U.S.

Treasury

10

Year

Note

...................................................

5,273

12/20/22

590,906

28,219,400

U.S.

Treasury

10

Year

Ultra

Note

...............................................

321

12/20/22

38,049

1,904,621

U.S.

Treasury

Long

Bond

....................................................

459

12/20/22

58,078

4,324,021

U.S.

Treasury

Ultra

Bond

....................................................

29

12/20/22

3,964

328,850

U.S.

Treasury

5

Year

Note

....................................................

190

12/30/22

20,415

724,371

35,501,263

$

(6,156,461)

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

EUR

600,000

USD

588,197

Deutsche

Bank

AG

10/14/22

$

240

GBP

150,000

USD

167,489

Deutsche

Bank

AG

10/14/22

30

USD

10,529

CHF

10,000

UBS

AG

10/14/22

385

USD

50,672

EUR

51,000

Bank

of

America

NA

10/14/22

655

USD

127,998

EUR

130,000

Citibank

NA

10/14/22

503

USD

36,999

EUR

37,000

Morgan

Stanley

&

Co.

International

plc

10/14/22

712

USD

33,253,874

EUR

32,760,000

UBS

AG

10/14/22

1,125,226

USD

1,615,667

GBP

1,380,000

Bank

of

America

NA

10/14/22

74,493

USD

172,823

EUR

172,000

Morgan

Stanley

&

Co.

International

plc

12/21/22

3,186

1,205,430

EUR

95,000

USD

96,864

Bank

of

America

NA

10/14/22

(3,696)

EUR

16,930,000

USD

17,163,651

JPMorgan

Chase

Bank

NA

10/14/22

(559,927)

USD

104,243

EUR

108,000

Bank

of

America

NA

10/14/22

(1,676)

USD

29,264

EUR

30,000

JPMorgan

Chase

Bank

NA

10/14/22

(158)

USD

19,194

EUR

20,000

UBS

AG

10/14/22

(421)

USD

36,693

GBP

34,000

Bank

of

America

NA

10/14/22

(1,277)

USD

94,229

GBP

87,000

JPMorgan

Chase

Bank

NA

10/14/22

(2,931)

USD

89,072

EUR

91,000

UBS

AG

12/21/22

(678)

(570,764)

$

634,666

Exchange-Traded

Options

Purchased

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EURO

STOXX

50

Index

.......................

9

10/21/22

EUR

3,400.00

EUR

299

$

11,537

EURO

STOXX

50

Index

.......................

1

11/18/22

EUR

3,400.00

EUR

33

1,690

STOXX

Europe

600

Auto

&

Parts

.................

4

12/16/22

EUR

470.00

EUR

95

5,939

STOXX

Europe

600

Auto

&

Parts

.................

7

12/16/22

EUR

350.00

EUR

167

2,041

STOXX

Europe

600

Chemicals

..................

3

12/16/22

EUR

1,040.00

EUR

158

7,394

BlackRock

Income

Fund

Schedules

of

Investments

65

Schedule

of

Investments

(continued)

September

30,

2022

Exchange-Traded

Options

Purchased

(continued)

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

STOXX

Europe

600

Chemicals

..................

4

12/16/22

EUR

840.00

EUR

211

$

1,392

STOXX

Europe

600

Personal

&

Household

Goods

.....

2

12/16/22

EUR

800.00

EUR

89

1,744

$

31,737

OTC

Credit

Default

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate/Reference

Rate/Reference

Frequency

Counterparty

Expiration

Date

Exercise

Price

Notional

Amount

(000)

(a)

Value

Call

Bought

Protection

on

5-Year

Credit

Default

Swap

......

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

5.00

%

Quarterly

Barclays

Bank

plc

11/16/22

EUR

300.00

EUR

100

$

19

Bought

Protection

on

5-Year

Credit

Default

Swap

......

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

5.00

Quarterly

Barclays

Bank

plc

10/19/22

EUR

300.00

EUR

3,700

277

296

Put

Bought

Protection

on

5-Year

Credit

Default

Swap

......

5.00

%

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

Quarterly

Barclays

Bank

plc

10/19/22

EUR

700.00

EUR

600

2,342

Bought

Protection

on

5-Year

Credit

Default

Swap

......

5.00

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

Quarterly

Barclays

Bank

plc

11/16/22

EUR

750.00

EUR

100

789

3,131

$

3,427

(a)

The

maximum

potential

amount

the

Fund

may

pay

should

a

negative

credit

event

take

place

as

defined

under

the

terms

of

the

agreement.

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EURO

STOXX

50

Index

........................

9

10/21/22

EUR

3,200.00

EUR

299

$

(4,159)

EURO

STOXX

50

Index

........................

1

11/18/22

EUR

3,100.00

EUR

33

(611)

STOXX

Europe

600

Auto

&

Parts

..................

4

12/16/22

EUR

400.00

EUR

95

(2,235)

STOXX

Europe

600

Chemicals

...................

3

12/16/22

EUR

940.00

EUR

158

(2,880)

$

(9,885)

OTC

Credit

Default

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate/Reference

Rate/Reference

Frequency

Counterparty

Expiration

Date

Credit

Rating

(a)

Exercise

Price

Notional

Amount

(000)

(b)

Value

Call

Sold

Protection

on

5-Year

Credit

Default

Swap

.........

5.00

%

ITRAXX

EUROPE

CROSSOVER

Index

Series

37.V1

Quarterly

Barclays

Bank

plc

11/16/22

NR

EUR

525.00

EUR

100

$

(554)

(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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

66

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

2-Year

Interest

Rate

Swap

(a)

.

2.30%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

12/30/22

2.30

%

USD

540,000

$

(77,416)

Put

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.80%

Semi-Annual

Goldman

Sachs

International

12/30/22

3.8

0 

USD

540,000

(6,156,318)

$

(6,233,734)

(a)

Forward

settling

swaption.

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)

ITRAXX.EUROPE.CROSSOVER.38.V1

....

5.00

%

Quarterly

12/20/27

EUR

52

$

2,622

$

1,692

$

930

ITRAXX.EUROPE.SUB.FINANCIALS.38.V1

..

1.00

Quarterly

12/20/27

EUR

101

7,614

8,250

(636)

$

10,236

$

9,942

$

294

Centrally

Cleared

Credit

Defa

ul

t

Swaps

—

Sell

Protection

Reference

Obligation/Index

Financing

Rate

Received

by

the

Fund

Payment

Frequency

Termination

Date

Credit

Rating

(a)

Notional

Amount

(000)

(b)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

CDX.NA.HY.38.V2

.....

5.00

%

Quarterly

06/20/27

BB-

USD

107,737

$

(2,274,123)

$

2,257,898

$

(4,532,021)

(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

Credit

Default

Swap

s

—

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)

Casino

Guichard

Perrachon

SA

.............

5.00

%

Quarterly

JPMorgan

Chase

Bank

NA

06/20/23

B

EUR

40

$

(7,335)

$

(2,622)

$

(4,713)

Novafives

SAS

.......

5.00

Quarterly

Citibank

NA

06/20/23

B-

EUR

60

(8,032)

(3,079)

(4,953)

thyssenkrupp

AG

......

1.00

Quarterly

BNP

Paribas

SA

06/20/23

BB-

EUR

30

(685)

(667)

(18)

Lumen

Technologies,

Inc.

1.00

Quarterly

Barclays

Bank

plc

12/20/23

NR

USD

30

(454)

(562)

108

Faurecia

SE

.........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

06/20/25

BB

EUR

30

745

1,272

(527)

CMA

CGM

SA

........

5.00

Quarterly

JPMorgan

Chase

Bank

NA

12/20/26

BB+

EUR

90

(1,743)

6,988

(8,731)

Ladbrokes

Group

Finance

plc

.............

1.00

Quarterly

Credit

Suisse

International

12/20/26

NR

EUR

80

(12,156)

(4,777)

(7,379)

TK

Elevator

Holdco

GmbH

5.00

Quarterly

Goldman

Sachs

International

12/20/26

CCC+

EUR

50

111

1,627

(1,516)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Bank

of

America

NA

12/20/27

CCC

EUR

22

(6,098)

(5,360)

(738)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Barclays

Bank

plc

12/20/27

CCC

EUR

13

(3,666)

(3,177)

(489)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Barclays

Bank

plc

12/20/27

CCC

EUR

37

(10,301)

(8,929)

(1,372)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Citibank

NA

12/20/27

CCC

EUR

11

(2,986)

(2,665)

(321)

BlackRock

Income

Fund

Schedules

of

Investments

67

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Credit

Default

Swaps

—

Sell

Protection

(continued)

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)

ADLER

Real

Estate

AG

.

5.00

%

Quarterly

JPMorgan

Chase

Bank

NA

12/20/27

CCC

EUR

22

$

(6,256)

$

(5,449)

$

(807)

ADLER

Real

Estate

AG

.

5.00

Quarterly

Morgan

Stanley

&

Co.

International

plc

12/20/27

CCC

EUR

16

(4,536)

(3,948)

(588)

$

(63,392)

$

(31,348)

$

(32,044)

(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.

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

%

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps,

OTC

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

2,267,840

$

—

$

930

$

(4,532,657)

$

—

OTC

Swaps

.....................................................

9,887

(41,235)

108

(32,152)

—

Options

Written

...................................................

N/A

N/A

1,718,401

(4,539,206)

(6,244,173)

(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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

68

Schedule

of

Investments

(continued)

September

30,

2022

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)

.....

$

—

$

—

$

—

$

—

$

35,501,263

$

—

$

35,501,263

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

1,205,430

—

—

1,205,430

Options

purchased

Investments

at

value

—

unaffiliated

(b)

...........

—

3,427

31,737

—

—

—

35,164

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

930

—

—

—

—

930

Swaps

—

OTC

Unrealized

appreciation

on

OTC

swaps;

Swap

premiums

paid

................................

—

9,995

—

—

—

—

9,995

$

—

$

14,352

$

31,737

$

1,205,430

$

35,501,263

$

—

$

36,752,782

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

41,657,724

$

—

$

41,657,724

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

570,764

—

—

570,764

Options

written

(c)

Options

written

at

value

.....................

—

554

9,885

—

6,233,734

—

6,244,173

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

4,532,657

—

—

—

—

4,532,657

Swaps

—

OTC

Unrealized

depreciation

on

OTC

swaps;

Swap

premiums

received

.............................

—

73,387

—

—

—

—

73,387

$

—

$

4,606,598

$

9,885

$

570,764

$

47,891,458

$

—

$

53,078,705

(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).

(b)

Includes

options

purchased

at

value

as

reported

in

the

Schedule

of

Investments.

(c)

Includes

forward

settling

swaptions.

For

the

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

90,137

$

—

$

(8,051,971)

$

—

$

(7,961,834)

Forward

foreign

currency

exchange

contracts

....

—

—

—

77,923,490

—

—

77,923,490

Options

purchased

(a)

....................

—

(61,758)

(6,951,991)

(1,639,491)

(593,301)

—

(9,246,541)

Options

written

........................

—

41,411

3,024,335

—

16,609

—

3,082,355

Swaps

..............................

—

(699,006)

—

—

—

—

(699,006)

$

—

$

(719,353)

$

(3,837,519)

$

76,283,999

$

(8,628,663)

$

—

$

63,098,464

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

(3,882,778)

$

—

$

(3,882,778)

Forward

foreign

currency

exchange

contracts

....

—

—

—

(11,202,811)

—

—

(11,202,811)

Options

purchased

(b)

....................

—

(5,948)

237,056

677,508

—

—

908,616

Options

written

........................

—

318

(215,099)

—

(2,818,234)

—

(3,033,015)

Swaps

..............................

—

(4,374,469)

—

—

—

—

(4,374,469)

$

—

$

(4,380,099)

$

21,957

$

(10,525,303)

$

(6,701,012)

$

—

$

(21,584,457)

(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.

BlackRock

Income

Fund

Schedules

of

Investments

69

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

1,212,773,669

Average

notional

value

of

contracts

—

short

.................................................................................

$

500,818,625

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

392,054,495

Average

amounts

sold

—

in

USD

........................................................................................

$

69,345,231

Options

Average

value

of

option

contracts

purchased

................................................................................

$

1,278,966

Average

value

of

option

contracts

written

...................................................................................

$

133,777

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

1,102,556

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

270,024,501

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

37,487

Average

notional

value

—

sell

protection

...................................................................................

$

73,692,803

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

2,619,105

$

2,801,801

Forward

foreign

currency

exchange

contracts

.................................................................

1,205,430

570,764

Options

(a)

.........................................................................................

35,164

6,244,173

Swaps

—

centrally

cleared

..............................................................................

—

293,419

Swaps

—

OTC

(b)

....................................................................................

9,995

73,387

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

3,869,694

$

9,983,544

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(2,650,842)

(3,105,105)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

1,218,852

$

6,878,439

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Statements

of

Assets

and

Liabilities

and

reported

in

the

Schedule

of

Investments.

(b)

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

..............................

$

75,14

8

$

(12,747

)

$

—

$

—

$

62,40

1

Barclays

Bank

plc

................................

3,535

(3,535)

—

—

—

Citibank

NA

....................................

503

(503)

—

—

—

Deutsche

Bank

AG

...............................

2

70

—

—

—

2

70

Goldman

Sachs

International

........................

1,627

(1,627)

—

—

—

JPMorgan

Chase

Bank

NA

..........................

8,260

(8,260)

—

—

—

Morgan

Stanley

&

Co.

International

plc

..................

3,898

(3,898)

—

—

—

UBS

AG

......................................

1,125,611

(1,099

)

—

—

1,124,51

2

$

1,218,852

$

(31,669

)

$

—

$

—

$

1,187,18

3

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

70

Schedule

of

Investments

(continued)

September

30,

2022

Counterparty

Derivative

Liabilities

Subject

to

an

MNA

by

Counterparty

Derivatives

Available

for

Offset

(a)

Non-cash

Collateral

Pledged

(d)

Cash

Collateral

Pledged

Net

Amount

of

Derivative

Liabilities

(c)(e)

Bank

of

America

NA

..............................

$

12,7

47

$

(12,7

47

)

$

—

$

—

$

—

Barclays

Bank

plc

................................

15,08

3

(3,535)

—

—

11,54

8

BNP

Paribas

SA

.................................

685

—

—

—

685

Citibank

NA

....................................

11,018

(503)

(10,515)

—

—

Credit

Suisse

International

..........................

12,15

6

—

(12,156

)

—

—

Goldman

Sachs

International

........................

6,235,2

50

(1,627)

(5,750,004

)

—

483,618

JPMorgan

Chase

Bank

NA

..........................

585,865

(8,260)

(10,743)

—

566,862

Morgan

Stanley

&

Co.

International

plc

..................

4,536

(3,898)

—

—

638

UBS

AG

......................................

1,09

9

(1,099

)

—

—

—

$

6,878,439

$

(31,669

)

$

(5,783,415

)

$

—

$

1,063,3

51

(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)

Excess

of

collateral

received/pledged,

if

any,

from

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

(e)

Net

amount

represents

the

net

amount

payable

due

to

the

counterparty

in

the

event

of

default.

BlackRock

Income

Fund

Schedules

of

Investments

71

Schedule

of

Investments

(continued)

September

30,

2022

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

...................................

$

—

$

75,363,988

$

—

$

75,363,988

Common

Stocks

Building

Products

.......................................

3,889

—

—

3,889

Chemicals

............................................

255,967

—

—

255,967

Commercial

Services

&

Supplies

.............................

—

—

150

150

Construction

&

Engineering

................................

—

21,750

—

21,750

Electrical

Equipment

.....................................

—

130,670

—

130,670

Hotels,

Restaurants

&

Leisure

..............................

—

—

—

—

IT

Services

...........................................

57,897

—

—

57,897

Life

Sciences

Tools

&

Services

..............................

180,019

—

—

180,019

Machinery

............................................

—

141

—

141

Marine

..............................................

—

—

—

—

Media

...............................................

35,245

—

—

35,245

Metals

&

Mining

........................................

165,576

—

—

165,576

Oil,

Gas

&

Consumable

Fuels

...............................

341,853

—

—

341,853

Professional

Services

....................................

—

322,263

—

322,263

Software

.............................................

157,027

—

—

157,027

Corporate

Bonds

Aerospace

&

Defense

....................................

—

13,662,335

—

13,662,335

Airlines

..............................................

—

9,448,346

—

9,448,346

Auto

Components

......................................

—

13,272,070

—

13,272,070

Automobiles

..........................................

—

5,719,992

—

5,719,992

Banks

...............................................

—

153,419,492

—

153,419,492

Beverages

...........................................

—

5,127,695

—

5,127,695

Building

Products

.......................................

—

3,710,245

—

3,710,245

Capital

Markets

........................................

—

43,446,953

—

43,446,953

Chemicals

............................................

—

17,424,814

—

17,424,814

Commercial

Services

&

Supplies

.............................

—

12,491,025

—

12,491,025

Communications

Equipment

................................

—

2,930,403

—

2,930,403

Construction

&

Engineering

................................

—

1,015,645

—

1,015,645

Construction

Materials

....................................

—

1,449,885

—

1,449,885

Consumer

Finance

......................................

—

10,287,179

—

10,287,179

Containers

&

Packaging

..................................

—

9,017,668

—

9,017,668

Distributors

...........................................

—

154,287

—

154,287

Diversified

Consumer

Services

..............................

—

2,403,069

—

2,403,069

Diversified

Financial

Services

...............................

—

9,742,967

—

9,742,967

Diversified

Telecommunication

Services

........................

—

43,170,120

—

43,170,120

Electric

Utilities

........................................

—

13,953,864

—

13,953,864

Electrical

Equipment

.....................................

—

2,977,934

—

2,977,934

Electronic

Equipment,

Instruments

&

Components

.................

—

1,642,556

—

1,642,556

Energy

Equipment

&

Services

..............................

—

3,674,512

—

3,674,512

Entertainment

.........................................

—

3,638,093

—

3,638,093

Equity

Real

Estate

Investment

Trusts

(REITs)

....................

—

35,729,446

—

35,729,446

Food

&

Staples

Retailing

..................................

—

4,246,339

—

4,246,339

Food

Products

.........................................

—

9,499,541

—

9,499,541

Gas

Utilities

...........................................

—

89,467

—

89,467

Health

Care

Equipment

&

Supplies

...........................

—

3,685,386

—

3,685,386

Health

Care

Providers

&

Services

............................

—

21,091,717

—

21,091,717

Hotels,

Restaurants

&

Leisure

..............................

—

23,925,633

—

23,925,633

Household

Durables

.....................................

—

9,073,793

—

9,073,793

Household

Products

.....................................

—

140,786

—

140,786

Independent

Power

and

Renewable

Electricity

Producers

............

—

3,611,198

—

3,611,198

Industrial

Conglomerates

..................................

—

272,970

—

272,970

Insurance

............................................

—

14,687,495

—

14,687,495

Interactive

Media

&

Services

...............................

—

6,591,106

—

6,591,106

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Income

Fund

72

Schedule

of

Investments

(continued)

September

30,

2022

Level

1

Level

2

Level

3

Total

Internet

&

Direct

Marketing

Retail

............................

$

—

$

3,279,250

$

—

$

3,279,250

IT

Services

...........................................

—

18,107,435

—

18,107,435

Leisure

Products

.......................................

—

152,135

—

152,135

Life

Sciences

Tools

&

Services

..............................

—

1,735,766

—

1,735,766

Machinery

............................................

—

5,883,210

—

5,883,210

Marine

..............................................

—

661,732

—

661,732

Media

...............................................

—

33,278,803

—

33,278,803

Metals

&

Mining

........................................

—

15,968,997

—

15,968,997

Mortgage

Real

Estate

Investment

Trusts

(REITs)

..................

—

48,592

—

48,592

Multiline

Retail

.........................................

—

107,506

—

107,506

Multi-Utilities

..........................................

—

3,770,954

—

3,770,954

Oil,

Gas

&

Consumable

Fuels

...............................

—

70,524,940

—

70,524,940

Paper

&

Forest

Products

..................................

—

994,500

—

994,500

Personal

Products

......................................

—

68,782

—

68,782

Pharmaceuticals

.......................................

—

3,487,485

—

3,487,485

Professional

Services

....................................

—

1,707,430

—

1,707,430

Real

Estate

Management

&

Development

.......................

—

16,768,226

—

16,768,226

Road

&

Rail

...........................................

—

6,602,395

—

6,602,395

Semiconductors

&

Semiconductor

Equipment

....................

—

15,283,640

—

15,283,640

Software

.............................................

—

23,153,831

—

23,153,831

Specialty

Retail

........................................

—

15,740,500

—

15,740,500

Technology

Hardware,

Storage

&

Peripherals

....................

—

181,984

—

181,984

Textiles,

Apparel

&

Luxury

Goods

............................

—

996,378

—

996,378

Thrifts

&

Mortgage

Finance

................................

—

1,249,172

—

1,249,172

Tobacco

.............................................

—

17,542,279

—

17,542,279

Trading

Companies

&

Distributors

............................

—

3,252,480

—

3,252,480

Transportation

Infrastructure

...............................

—

434,886

—

434,886

Wireless

Telecommunication

Services

.........................

—

5,927,028

—

5,927,028

Floating

Rate

Loan

Interests

Aerospace

&

Defense

....................................

—

6,979,201

—

6,979,201

Airlines

..............................................

—

7,356,308

—

7,356,308

Auto

Components

......................................

—

1,662,011

—

1,662,011

Automobiles

..........................................

—

834,755

—

834,755

Beverages

...........................................

—

1,782,871

—

1,782,871

Building

Products

.......................................

—

3,000,299

186,934

3,187,233

Capital

Markets

........................................

—

4,409,755

1,331,915

5,741,670

Chemicals

............................................

—

7,626,438

—

7,626,438

Commercial

Services

&

Supplies

.............................

—

8,719,038

635,629

9,354,667

Communications

Equipment

................................

—

931,313

—

931,313

Construction

&

Engineering

................................

—

2,597,309

—

2,597,309

Construction

Materials

....................................

—

1,978,288

272,310

2,250,598

Containers

&

Packaging

..................................

—

5,143,858

—

5,143,858

Distributors

...........................................

—

419,746

—

419,746

Diversified

Consumer

Services

..............................

—

7,067,630

—

7,067,630

Diversified

Financial

Services

...............................

—

7,603,755

503,225

8,106,980

Diversified

Telecommunication

Services

........................

—

8,133,127

724,412

8,857,539

Electric

Utilities

........................................

—

542,853

—

542,853

Electrical

Equipment

.....................................

—

274,550

538,830

813,380

Electronic

Equipment,

Instruments

&

Components

.................

—

557,250

—

557,250

Energy

Equipment

&

Services

..............................

—

57,933

10,299

68,232

Entertainment

.........................................

—

7,415,706

—

7,415,706

Equity

Real

Estate

Investment

Trusts

(REITs)

....................

—

315,782

—

315,782

Food

&

Staples

Retailing

..................................

—

1,114,427

—

1,114,427

Food

Products

.........................................

—

7,393,916

—

7,393,916

Health

Care

Equipment

&

Supplies

...........................

—

4,203,816

—

4,203,816

Health

Care

Providers

&

Services

............................

—

7,903,573

383,372

8,286,945

Health

Care

Technology

..................................

—

2,201,467

—

2,201,467

Hotels,

Restaurants

&

Leisure

..............................

—

13,212,606

—

13,212,606

Household

Durables

.....................................

—

3,455,030

—

3,455,030

Household

Products

.....................................

—

1,194,704

—

1,194,704

Independent

Power

and

Renewable

Electricity

Producers

............

—

757,861

—

757,861

Insurance

............................................

—

11,287,161

—

11,287,161

Interactive

Media

&

Services

...............................

—

4,961,408

—

4,961,408

Internet

&

Direct

Marketing

Retail

............................

—

—

1,352,391

1,352,391

IT

Services

...........................................

—

6,399,387

195,179

6,594,566

Leisure

Products

.......................................

—

847,417

—

847,417

BlackRock

Income

Fund

Schedules

of

Investments

73

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

Level

1

Level

2

Level

3

Total

Life

Sciences

Tools

&

Services

..............................

$

—

$

7,520,064

$

—

$

7,520,064

Machinery

............................................

—

13,437,633

—

13,437,633

Media

...............................................

—

8,986,761

2,059,971

11,046,732

Metals

&

Mining

........................................

—

1,446,287

—

1,446,287

Multiline

Retail

.........................................

—

—

375,408

375,408

Oil,

Gas

&

Consumable

Fuels

...............................

—

3,692,549

—

3,692,549

Personal

Products

......................................

—

3,397,784

2,347,067

5,744,851

Pharmaceuticals

.......................................

—

4,966,781

974,518

5,941,299

Professional

Services

....................................

—

8,066,804

1,125,936

9,192,740

Real

Estate

Management

&

Development

.......................

—

1,239,616

—

1,239,616

Road

&

Rail

...........................................

—

2,893,109

—

2,893,109

Semiconductors

&

Semiconductor

Equipment

....................

—

189,530

—

189,530

Software

.............................................

—

27,694,350

1,994,198

29,688,548

Specialty

Retail

........................................

—

5,489,356

—

5,489,356

Technology

Hardware,

Storage

&

Peripherals

....................

—

251,928

—

251,928

Textiles,

Apparel

&

Luxury

Goods

............................

—

837,453

—

837,453

Trading

Companies

&

Distributors

............................

—

4,644,237

599,854

5,244,091

Transportation

Infrastructure

...............................

—

931,591

—

931,591

Wireless

Telecommunication

Services

.........................

—

1,604,199

—

1,604,199

Foreign

Agency

Obligations

.................................

—

17,807,868

—

17,807,868

Foreign

Government

Obligations

..............................

—

14,000,410

—

14,000,410

Investment

Companies

....................................

38,511,331

—

—

38,511,331

Non-Agency

Mortgage-Backed

Securities

........................

—

13,328,737

1,868,694

15,197,431

Other

Interests

..........................................

—

—

—

—

Preferred

Securities

.......................................

—

22,318,868

—

22,318,868

U.S.

Government

Sponsored

Agency

Securities

....................

—

1,459,408

—

1,459,408

U.S.

Treasury

Obligations

...................................

—

385,395,345

—

385,395,345

Warrants

..............................................

5,148

—

—

5,148

Short-Term

Securities

Money

Market

Funds

......................................

101,941,923

—

—

101,941,923

Options

Purchased

Credit

contracts

..........................................

—

3,427

—

3,427

Equity

contracts

..........................................

31,737

—

—

31,737

Liabilities

Unfunded

Floating

Rate

Loan

Interests

(a)

..............................

—

(2,510)

—

(2,510)

$

141,687,612

$

1,561,119,288

$

17,480,292

$

1,720,287,192

Investments

valued

at

NAV

(b)

......................................

964

$

—

$

1,720,288,156

$

—

Derivative

Financial

Instruments

(c)

Assets

Credit

contracts

...........................................

$

—

$

1,038

$

—

$

1,038

Foreign

currency

exchange

contracts

............................

—

1,205,430

—

1,205,430

Interest

rate

contracts

.......................................

35,501,263

—

—

35,501,263

Liabilities

Credit

contracts

...........................................

—

(4,565,363)

—

(4,565,363)

Equity

contracts

...........................................

(9,885)

—

—

(9,885)

Foreign

currency

exchange

contracts

............................

—

(570,764)

—

(570,764)

Interest

rate

contracts

.......................................

(41,657,724)

(6,233,734)

—

(47,891,458)

$

(6,166,346)

$

(10,163,393)

$

—

$

(16,329,739)

(a)

Unfunded

floating

rate

loan

interests

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

commitment.

(b)

Certain

investments

of

the

Fund

were

fair

valued

using

NAV

per

share

as

no

quoted

market

value

is

available

and

therefore

have

been

excluded

from

the

fair

value

hierarchy.

(c)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

Statements

of

Assets

and

Liabilities

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

74

BlackRock

GNMA

Portfolio

BlackRock

Impact

Mortgage

Fund

BlackRock

Income

Fund

ASSETS

Investments,

at

value

—

unaffiliated

(a)

..........................................................

$

582,368,366‌

$

934,964,684‌

$

1,581,685,423‌

Investments,

at

value

—

affiliated

(b)

............................................................

1,533,765‌

4,244,707‌

138,605,243‌

Cash  

...............................................................................

72,254‌

—‌

3,595,824‌

Cash

pledged:

Collateral

—

reverse

repurchase

agreements

....................................................

1,105,000‌

3,861,535‌

—‌

Collateral

—

OTC

derivatives

..............................................................

3,690,000‌

3,989,000‌

—‌

Futures

contracts

......................................................................

1,186,310‌

724,000‌

13,022,940‌

Centrally

cleared

swaps

..................................................................

712,000‌

952,000‌

11,147,000‌

Foreign

currency,

at

value

(c)

.................................................................

—‌

—‌

5,152,233‌

Receivables:

–‌

–‌

–‌

Investments

sold

......................................................................

—‌

—‌

26,838,674‌

TBA

sale

commitments

..................................................................

104,213,665‌

429,968,250‌

—‌

Capital

shares

sold

.....................................................................

488,757‌

555,955‌

4,896,935‌

Dividends

—

unaffiliated

.................................................................

—‌

—‌

22,026‌

Dividends

—

affiliated

...................................................................

5,372‌

40,311‌

188,818‌

Interest

—

unaffiliated

...................................................................

1,815,288‌

2,539,298‌

14,211,575‌

From

the

Manager

.....................................................................

16,859‌

48,753‌

159,357‌

Due

from

broker

.......................................................................

—‌

1,000,000‌

—‌

Variation

margin

on

futures

contracts

.........................................................

259,020‌

259,046‌

2,619,105‌

Variation

margin

on

centrally

cleared

swaps

....................................................

90,751‌

121,273‌

—‌

Swap

premiums

paid

.....................................................................

—‌

—‌

9,887‌

Unrealized

appreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

—‌

8,159‌

1,205,430‌

OTC

swaps

..........................................................................

—‌

—‌

108‌

Prepaid

expenses

.......................................................................

72,161‌

94,424‌

118,185‌

Total

assets

...........................................................................

697,629,568‌

1,383,371,395‌

1,803,478,763‌

LIABILITIES

Bank

overdraft

..........................................................................

—‌

55,887‌

—‌

Cash

received:

Collateral

—

TBA

commitments

.............................................................

165,000‌

2,634,263‌

—‌

Options

written,

at

value

(d)

..................................................................

3,063,563‌

4,132,497‌

6,244,173‌

TBA

sale

commitments,

at

value

(e)

............................................................

100,778,621‌

410,994,340‌

—‌

Reverse

repurchase

agreements,

at

value

.......................................................

80,359,283‌

109,101,297‌

—‌

Payables:

–‌

–‌

–‌

Investments

purchased

..................................................................

147,895,411‌

369,350,183‌

10,300,018‌

Accounting

services

fees

.................................................................

16,764‌

22,395‌

117,679‌

Administration

fees

.....................................................................

13,345‌

17,925‌

60,488‌

Capital

shares

redeemed

.................................................................

768,350‌

1,601,215‌

7,338,455‌

Custodian

fees

........................................................................

11,540‌

10,715‌

29,310‌

Income

dividend

distributions

..............................................................

174,124‌

583,474‌

547,249‌

Investment

advisory

fees

.................................................................

72,133‌

116,349‌

693,197‌

Trustees'

and

Officer's

fees

...............................................................

2,089‌

2,342‌

7,436‌

Other

affiliate

fees

.....................................................................

—‌

—‌

343‌

Professional

fees

......................................................................

65,638‌

52,447‌

76,963‌

Registration

fees

......................................................................

—‌

—‌

9,305‌

Service

and

distribution

fees

...............................................................

32,966‌

69,095‌

54,315‌

Transfer

agent

fees

....................................................................

146,828‌

265,769‌

602,264‌

Other

accrued

expenses

.................................................................

10,591‌

34,542‌

2,675‌

Variation

margin

on

futures

contracts

.........................................................

16,652‌

121,657‌

2,801,801‌

Variation

margin

on

centrally

cleared

swaps

....................................................

—‌

—‌

293,419‌

Swap

premiums

received

..................................................................

—‌

—‌

41,235‌

Unrealized

depreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

—‌

5,139‌

570,764‌

OTC

swaps

..........................................................................

—‌

—‌

32,152‌

Unfunded

floating

rate

loan

interests

.........................................................

—‌

—‌

2,510‌

Total

liabilities

..........................................................................

333,592,898‌

899,171,531‌

29,825,751‌

NET

ASSETS

..........................................................................

$

364,036,670‌

$

484,199,864‌

$

1,773,653,012‌

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2022

75

Financial

Statements

See

notes

to

financial

statements.

BlackRock

GNMA

Portfolio

BlackRock

Impact

Mortgage

Fund

BlackRock

Income

Fund

NET

ASSETS

CONSIST

OF:

Paid-in

capital

..........................................................................

$

518,805,872‌

$

612,572,218‌

$

2,275,976,301‌

Accumulated

loss

.......................................................................

(154,769,202‌)

(128,372,354‌)

(502,323,289‌)

NET

ASSETS

..........................................................................

$

364,036,670‌

$

484,199,864‌

$

1,773,653,012‌

(a)

  Investments,

at

cost

—

unaffiliated

..........................................................

$

640,905,151‌

$

1,003,017,630‌

$

1,754,902,157‌

(b)

  Investments,

at

cost

—

affiliated

............................................................

$

1,533,765‌

$

4,244,707‌

$

142,270,715‌

(c)

  Foreign

currency,

at

cost

.................................................................

$

—‌

$

—‌

$

5,217,342‌

(d)

  Premiums

received

....................................................................

$

1,681,026‌

$

2,320,839‌

$

3,423,368‌

(e)

  Proceeds

from

TBA

sale

commitments

.......................................................

$

104,213,665‌

$

429,968,250‌

$

—‌

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

76

See

notes

to

financial

statements.

BlackRock

GNMA

Portfolio

BlackRock

Impact

Mortgage

Fund

BlackRock

Income

Fund

NET

ASSET

VALUE

Institutional

Net

assets

............................................................................

$

203,541,739‌

$

201,444,264‌

$

1,370,526,343‌

Shares

outstanding

.....................................................................

26,079,474‌

22,274,611‌

161,250,752‌

Net

asset

value

........................................................................

$

7.80‌

$

9.04‌

$

8.50‌

Shares

authorized

......................................................................

Unlimited

Unlimited

Unlimited

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Investor

A

Net

assets

............................................................................

$

97,870,911‌

$

253,151,922‌

$

161,675,050‌

Shares

outstanding

.....................................................................

12,486,885‌

27,931,016‌

19,023,054‌

Net

asset

value

........................................................................

$

7.84‌

$

9.06‌

$

8.50‌

Shares

authorized

......................................................................

Unlimited

Unlimited

Unlimited

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Investor

C

Net

assets

............................................................................

$

9,715,427‌

$

8,781,431‌

$

20,598,431‌

Shares

outstanding

.....................................................................

1,244,995‌

970,565‌

2,422,193‌

Net

asset

value

........................................................................

$

7.80‌

$

9.05‌

$

8.50‌

Shares

authorized

......................................................................

Unlimited

Unlimited

Unlimited

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Class

K

Net

assets

............................................................................

$

52,908,593‌

$

17,327,825‌

$

220,853,188‌

Shares

outstanding

.....................................................................

6,800,747‌

1,916,114‌

25,985,254‌

Net

asset

value

........................................................................

$

7.78‌

$

9.04‌

$

8.50‌

Shares

authorized

......................................................................

Unlimited

Unlimited

Unlimited

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.001‌

Class

R

Net

assets

............................................................................

$

—‌

$

3,494,422‌

$

—‌

Shares

outstanding

.....................................................................

—‌

385,541‌

—‌

Net

asset

value

........................................................................

$

—‌

$

9.06‌

$

—‌

Shares

authorized

......................................................................

—

Unlimited

—

Par

value

............................................................................

$

—‌

$

0.001‌

$

—‌

Statements

of

Operations

Year

Ended

September

30,

2022

77

Financial

Statements

See

notes

to

financial

statements.

BlackRock

GNMA

Portfolio

BlackRock

Impact

Mortgage

Fund

BlackRock

Income

Fund

INVESTMENT

INCOME

–

–

–

Dividends

—

unaffiliated

.................................................................

$

—‌

$

—‌

$

1,256,233‌

Dividends

—

affiliated

...................................................................

23,317‌

76,574‌

2,150,446‌

Interest

—

unaffiliated

...................................................................

9,802,489‌

13,696,309‌

102,832,319‌

Foreign

taxes

withheld

..................................................................

—‌

(418‌)

(37,071‌)

Total

investment

income

...................................................................

9,825,806‌

13,772,465‌

106,201,927‌

EXPENSES

Investment

advisory

....................................................................

1,599,590‌

2,355,692‌

11,747,666‌

Transfer

agent

—

class

specific

............................................................

466,687‌

951,412‌

3,456,861‌

Service

and

distribution

—

class

specific

......................................................

453,471‌

896,922‌

769,903‌

Proxy

..............................................................................

327,642‌

—‌

—‌

Administration

.......................................................................

199,508‌

254,107‌

973,240‌

Registration

.........................................................................

102,220‌

110,584‌

238,594‌

Administration

—

class

specific

............................................................

94,088‌

120,799‌

506,349‌

Accounting

services

....................................................................

74,631‌

98,689‌

511,258‌

Custodian

...........................................................................

40,269‌

47,214‌

141,257‌

Trustees

and

Officer

....................................................................

9,039‌

10,538‌

42,523‌

Miscellaneous

........................................................................

144,305‌

140,298‌

243,680‌

Total

expenses

excluding

interest

expense

.......................................................

3,511,450‌

4,986,255‌

18,631,331‌

Interest

expense

......................................................................

606,448‌

944,988‌

—‌

Total

expenses

.........................................................................

4,117,898‌

5,931,243‌

18,631,331‌

Fees

waived

and/or

reimbursed

by

the

Manager

.................................................

(427,147‌)

(609,088‌)

(260,869‌)

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

............................

(258,169‌)

(650,445‌)

(1,639,053‌)

Administration

fees

waived

by

the

Manager

—

class

specific

.........................................

(94,053‌)

(120,660‌)

(456,651‌)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

3,338,529‌

4,551,050‌

16,274,758‌

Net

investment

income

....................................................................

6,487,277‌

9,221,415‌

89,927,169‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

(77,677,380‌)

$

(100,314,976‌)

$

(456,825,423‌)

Net

realized

gain

(loss)

from:

Investments

—

unaffiliated

(a)

............................................................

$

(28,546,461‌)

$

(38,731,233‌)

$

(356,237,226‌)

Investments

—

affiliated

...............................................................

—‌

—‌

(48,270‌)

Forward

foreign

currency

exchange

contracts

.................................................

—‌

(341,082‌)

77,923,490‌

Foreign

currency

transactions

...........................................................

—‌

(75,958‌)

(11,525,116‌)

Futures

contracts

....................................................................

13,931,244‌

3,033,131‌

(7,961,834‌)

Options

written

.....................................................................

1,667,740‌

1,707,975‌

3,082,355‌

Swaps  

..........................................................................

(3,825,568‌)

(5,601,583‌)

(699,006‌)

(16,773,045‌)

(40,008,750‌)

(295,465,607‌)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

unaffiliated

(b)

............................................................

(61,229,152‌)

(58,556,762‌)

(135,036,083‌)

Investments

—

affiliated

...............................................................

—‌

—‌

(3,229,557‌)

Forward

foreign

currency

exchange

contracts

.................................................

—‌

(534‌)

(11,202,811‌)

Foreign

currency

translations

............................................................

—‌

(183,859‌)

(598,376‌)

Futures

contracts

....................................................................

334,984‌

(1,088,102‌)

(3,882,778‌)

Options

written

.....................................................................

(1,688,745‌)

(2,174,753‌)

(3,033,015‌)

Swaps  

..........................................................................

1,678,578‌

1,697,784‌

(4,374,469‌)

Unfunded

floating

rate

loan

interests

.......................................................

—‌

—‌

(2,727‌)

(60,904,335‌)

(60,306,226‌)

(161,359,816‌)

Net

realized

and

unrealized

loss

..............................................................

(77,677,380‌)

(100,314,976‌)

(456,825,423‌)

NET

DECREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

...................................

$

(71,190,103‌)

$

(91,093,561‌)

$

(366,898,254‌)

(a)

  Net

of

foreign

capital

gain

tax

and

capital

gain

tax

refund,

if

applicable

of

.................................

$

—

$

(6

)

$

—

(b)

Net

of

reduction

in

deferred

foreign

capital

gain

tax

of

.............................................

$

—

$

128

$

—

Statements

of

Changes

in

Net

Assets

2022

BlackRock

Annual

Report

to

Shareholders

78

See

notes

to

financial

statements.

BlackRock

GNMA

Portfolio

BlackRock

Impact

Mortgage

Fund

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/22

Year

Ended

09/30/21

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

....................................................

$

6,487,277‌

$

5,508,729‌

$

9,221,415‌

$

7,363,538‌

Net

realized

gain

(loss)

....................................................

(16,773,045‌)

4,684,107‌

(40,008,750‌)

7,811,714‌

Net

change

in

unrealized

appreciation

(depreciation)

................................

(60,904,335‌)

(8,213,537‌)

(60,306,226‌)

(27,128,902‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

...........................

(71,190,103‌)

1,979,299‌

(91,093,561‌)

(11,953,650‌)

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

From

net

investment

income:

  Institutional

...........................................................

(5,773,331‌)

(7,757,190‌)

(4,617,124‌)

(5,766,221‌)

  Service

..............................................................

—‌

(47,369‌)

—‌

(3,791)

  Investor

A

............................................................

(2,324,490‌)

(2,916,277‌)

(4,549,119‌)

(4,978,441‌)

  Investor

C

............................................................

(146,093‌)

(297,478‌)

(90,455‌)

(111,837‌)

  Class

K

..............................................................

(1,136,070‌)

(1,009,386‌)

(325,694‌)

(271,580‌)

  Class

R

..............................................................

—‌

—‌

(51,907‌)

(47,691‌)

Return

of

capital:

–

–

–

–

  Institutional

...........................................................

—‌

—‌

(288,871‌)

—‌

  Investor

A

............................................................

—‌

—‌

(284,617‌)

—‌

  Investor

C

............................................................

—‌

—‌

(5,659‌)

—‌

  Class

K

..............................................................

—‌

—‌

(20,377‌)

—‌

  Class

R

..............................................................

—‌

—‌

(3,248‌)

—‌

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

.........................

(9,379,984‌)

(12,027,700‌)

(10,237,071‌)

(11,179,561‌)

CAPITAL

SHARE

TRANSACTIONS

Net

decrease

in

net

assets

derived

from

capital

share

transactions

.........................

(119,814,560‌)

(46,415,937‌)

(86,076,455‌)

(181,636,334‌)

NET

ASSETS

Total

decrease

in

net

assets

..................................................

(200,384,647‌)

(56,464,338‌)

(187,407,087‌)

(204,769,545‌)

Beginning

of

year

..........................................................

564,421,317‌

620,885,655‌

671,606,951‌

876,376,496‌

End

of

year

..............................................................

$

364,036,670‌

$

564,421,317‌

$

484,199,864‌

$

671,606,951‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Statements

of

Changes

in

Net

Assets

(continued)

79

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Income

Fund

Year

Ended

09/30/22

Year

Ended

09/30/21

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

..................................................................................

$

89,927,169‌

$

88,379,377‌

Net

realized

gain

(loss)

..................................................................................

(295,465,607‌)

69,470,950‌

Net

change

in

unrealized

appreciation

(depreciation)

..............................................................

(161,359,816‌)

(45,319,286‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

.........................................................

(366,898,254‌)

112,531,041‌

DISTRIBUTIONS

TO

SHAREHOLDERS

(a)

  Institutional

.........................................................................................

(118,754,490‌)

(72,517,733‌)

  Investor

A

..........................................................................................

(11,001,082‌)

(6,369,050‌)

  Investor

C

..........................................................................................

(1,390,190‌)

(867,193‌)

  Class

K

............................................................................................

(20,340,450‌)

(11,080,525‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

.......................................................

(151,486,212‌)

(90,834,501‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

(decrease)

in

net

assets

derived

from

capital

share

transactions

...............................................

(979,194,690‌)

1,648,772,904‌

NET

ASSETS

Total

increase

(decrease)

in

net

assets

.........................................................................

(1,497,579,156‌)

1,670,469,444‌

Beginning

of

year

........................................................................................

3,271,232,168‌

1,600,762,724‌

End

of

year

............................................................................................

$

1,773,653,012‌

$

3,271,232,168‌

(a)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

80

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding interest

expense would

have

been

0.72%,

0.55%

and

0.42%,

respectively.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

GNMA

Portfolio

Institutional

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

.....................

$

9.35

‌

$

9.50

‌

$

9.46

‌

$

9.13

‌

$

9.59

‌

Net

investment

income

(a)

...........................

0.13

‌

0.09

‌

0.22

‌

0.27

‌

0.25

‌

Net

realized

and

unrealized

gain

(loss)

..................

(1.49

)

(0.04

)

0.14

‌

0.41

‌

(0.38

)

Net

increase

(decrease)

from

investment

operations

..........

(1.36

)

0.05

‌

0.36

‌

0.68

‌

(0.13

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

........................

(0.19

)

(0.20

)

(0.32

)

(0.35

)

(0.33

)

Return

of

capital

.................................

—

‌

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

.................................

(0.19

)

(0.20

)

(0.32

)

(0.35

)

(0.33

)

Net

asset

value,

end

of

year

.........................

$

7.80

‌

$

9.35

‌

$

9.50

‌

$

9.46

‌

$

9.13

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

............................

(14.75

)%

0.47

%

3.86

%

7.55

%

(1.36

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

...................................

0.79

%

(f)

0.57

%

0.65

%

1.14

%

1.06

%

Total

expenses

after

fees

waived

and/or

reimbursed

..........

0.62

%

(f)

0.43

%

0.48

%

0.95

%

0.84

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

.................................

0.49

%

(f)

0.43

%

0.42

%

0.42

%

0.42

%

Net

investment

income

.............................

1.43

%

1.00

%

2.28

%

2.92

%

2.69

%

Supplemental

Data

Net

assets,

end

of

year

(000)

..........................

$

203,542

‌

$

363,815

‌

$

356,671

‌

$

264,811

‌

$

249,030

‌

Portfolio

turnover

rate

(g)

..............................

1,368

%

1,443

%

1,380

%

1,482

%

1,450

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

818%

859%

912%

947%

823%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

81

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding interest

expense would

have

been

0.98%,

0.80%

and

0.67%,

respectively.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

GNMA

Portfolio

Investor

A

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

.....................

$

9.39

‌

$

9.54

‌

$

9.50

‌

$

9.17

‌

$

9.63

‌

Net

investment

income

(a)

...........................

0.11

‌

0.07

‌

0.19

‌

0.25

‌

0.23

‌

Net

realized

and

unrealized

gain

(loss)

..................

(1.49

)

(0.05

)

0.15

‌

0.40

‌

(0.38

)

Net

increase

(decrease)

from

investment

operations

..........

(1.38

)

0.02

‌

0.34

‌

0.65

‌

(0.15

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

........................

(0.17

)

(0.17

)

(0.30

)

(0.32

)

(0.31

)

Return

of

capital

.................................

—

‌

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

.................................

(0.17

)

(0.17

)

(0.30

)

(0.32

)

(0.31

)

Net

asset

value,

end

of

year

.........................

$

7.84

‌

$

9.39

‌

$

9.54

‌

$

9.50

‌

$

9.17

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

............................

(14.89

)%

0.23

%

3.60

%

7.27

%

(1.58

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

...................................

1.05

%

(f)

0.84

%

0.93

%

1.43

%

1.33

%

Total

expenses

after

fees

waived

and/or

reimbursed

..........

0.87

%

(f)

0.68

%

0.73

%

1.20

%

1.09

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

.................................

0.74

%

(f)

0.68

%

0.67

%

0.67

%

0.67

%

Net

investment

income

.............................

1.22

%

0.76

%

2.04

%

2.67

%

2.44

%

Supplemental

Data

Net

assets,

end

of

year

(000)

..........................

$

97,871

‌

$

151,434

‌

$

161,035

‌

$

137,065

‌

$

120,582

‌

Portfolio

turnover

rate

(g)

..............................

1,368

%

1,443

%

1,380

%

1,482

%

1,450

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

818%

859%

912%

947%

823%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

82

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding interest

expense would

have

been

1.70%,

1.55%

and

1.42%,

respectively.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

GNMA

Portfolio

Investor

C

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

9.35

‌

$

9.50

‌

$

9.46

‌

$

9.13

‌

$

9.58

‌

Net

investment

income

(a)

..........................

0.04

‌

0.01

‌

0.12

‌

0.18

‌

0.16

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.49

)

(0.06

)

0.15

‌

0.40

‌

(0.37

)

Net

increase

(decrease)

from

investment

operations

.........

(1.45

)

(0.05

)

0.27

‌

0.58

‌

(0.21

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.10

)

(0.10

)

(0.23

)

(0.25

)

(0.24

)

Return

of

capital

................................

—

‌

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

................................

(0.10

)

(0.10

)

(0.23

)

(0.25

)

(0.24

)

Net

asset

value,

end

of

year

........................

$

7.80

‌

$

9.35

‌

$

9.50

‌

$

9.46

‌

$

9.13

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

...........................

(15.60

)%

(0.53

)%

2.83

%

6.49

%

(2.24

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

..................................

1.77

%

(f)

1.53

%

1.63

%

2.17

%

2.07

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

1.62

%

(f)

1.43

%

1.48

%

1.95

%

1.84

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

1.49

%

(f)

1.43

%

1.42

%

1.42

%

1.42

%

Net

investment

income

............................

0.44

%

0.06

%

1.30

%

1.96

%

1.70

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

9,715

‌

$

18,415

‌

$

31,336

‌

$

34,257

‌

$

44,241

‌

Portfolio

turnover

rate

(g)

.............................

1,368

%

1,443

%

1,380

%

1,482

%

1,450

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

818%

859%

912%

947%

823%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

83

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

non-recurring

expenses

of

proxy costs.

Without

these

costs,

total

expenses,

total

expenses

after

fees

waived,

and

total

expenses

after

fees

waived

and/or

reimbursed

and

excluding interest

expense would

have

been

0.62%,

0.50%

and

0.37%,

respectively.

(g)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

GNMA

Portfolio

Class

K

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

.....................

$

9.32

‌

$

9.47

‌

$

9.43

‌

$

9.10

‌

$

9.55

‌

Net

investment

income

(a)

...........................

0.15

‌

0.11

‌

0.22

‌

0.27

‌

0.25

‌

Net

realized

and

unrealized

gain

(loss)

..................

(1.50

)

(0.06

)

0.14

‌

0.41

‌

(0.37

)

Net

increase

(decrease)

from

investment

operations

..........

(1.35

)

0.05

‌

0.36

‌

0.68

‌

(0.12

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

........................

(0.19

)

(0.20

)

(0.32

)

(0.35

)

(0.33

)

Return

of

capital

.................................

—

‌

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

.................................

(0.19

)

(0.20

)

(0.32

)

(0.35

)

(0.33

)

Net

asset

value,

end

of

year

.........................

$

7.78

‌

$

9.32

‌

$

9.47

‌

$

9.43

‌

$

9.10

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

............................

(14.65

)%

0.52

%

3.91

%

7.62

%

(1.22

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

...................................

0.67

%

(f)

0.47

%

0.54

%

1.03

%

0.94

%

Total

expenses

after

fees

waived

and/or

reimbursed

..........

0.55

%

(f)

0.38

%

0.43

%

0.90

%

0.79

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

.................................

0.42

%

(f)

0.38

%

0.37

%

0.37

%

0.37

%

Net

investment

income

.............................

1.72

%

1.15

%

2.34

%

2.93

%

2.73

%

Supplemental

Data

Net

assets,

end

of

year

(000)

..........................

$

52,909

‌

$

30,757

‌

$

67,675

‌

$

45,934

‌

$

20,802

‌

Portfolio

turnover

rate

(g)

..............................

1,368

%

1,443

%

1,380

%

1,482

%

1,450

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

818%

859%

912%

947%

823%

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

84

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Impact

Mortgage

Fund

Institutional

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

10.81

‌

$

11.11

‌

$

10.62

‌

$

10.03

‌

$

10.45

‌

Net

investment

income

(a)

..........................

0.17

‌

0.12

‌

0.20

‌

0.26

‌

0.23

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.75

)

(0.25

)

0.51

‌

0.62

‌

(0.40

)

Net

increase

(decrease)

from

investment

operations

.........

(1.58

)

(0.13

)

0.71

‌

0.88

‌

(0.17

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.18

)

(0.17

)

(0.22

)

(0.29

)

(0.25

)

Return

of

capital

................................

(0.01

)

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

................................

(0.19

)

(0.17

)

(0.22

)

(0.29

)

(0.25

)

Net

asset

value,

end

of

year

........................

$

9.04

‌

$

10.81

‌

$

11.11

‌

$

10.62

‌

$

10.03

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

...........................

(14.77

)%

(1.16

)%

6.72

%

8.86

%

(1.68

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

..................................

0.83

%

0.65

%

0.76

%

1.20

%

1.04

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

0.61

%

0.45

%

0.56

%

0.96

%

0.76

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

0.45

%

0.45

%

0.45

%

0.45

%

0.45

%

Net

investment

income

............................

1.67

%

1.10

%

1.79

%

2.51

%

2.21

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

201,444

‌

$

295,674

‌

$

412,161

‌

$

217,815

‌

$

166,465

‌

Portfolio

turnover

rate

(f)

.............................

1,027

%

715

%

745

%

837

%

892

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

679%

458%

508%

571%

590%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

85

Financial

Highlights

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Impact

Mortgage

Fund

Investor

A

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

10.83

‌

$

11.14

‌

$

10.65

‌

$

10.06

‌

$

10.47

‌

Net

investment

income

(a)

..........................

0.15

‌

0.09

‌

0.18

‌

0.24

‌

0.20

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.76

)

(0.26

)

0.50

‌

0.61

‌

(0.39

)

Net

increase

(decrease)

from

investment

operations

.........

(1.61

)

(0.17

)

0.68

‌

0.85

‌

(0.19

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.15

)

(0.14

)

(0.19

)

(0.26

)

(0.22

)

Return

of

capital

................................

(0.01

)

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

................................

(0.16

)

(0.14

)

(0.19

)

(0.26

)

(0.22

)

Net

asset

value,

end

of

year

........................

$

9.06

‌

$

10.83

‌

$

11.14

‌

$

10.65

‌

$

10.06

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

...........................

(14.95

)%

(1.49

)%

6.45

%

8.57

%

(1.82

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

..................................

1.09

%

0.91

%

1.02

%

1.47

%

1.31

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

0.86

%

0.70

%

0.81

%

1.21

%

1.01

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

0.70

%

0.70

%

0.70

%

0.70

%

0.70

%

Net

investment

income

............................

1.43

%

0.84

%

1.61

%

2.28

%

1.96

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

253,152

‌

$

340,582

‌

$

414,711

‌

$

354,704

‌

$

353,770

‌

Portfolio

turnover

rate

(f)

.............................

1,027

%

715

%

745

%

837

%

892

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

679%

458%

508%

571%

590%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

86

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Impact

Mortgage

Fund

Investor

C

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

10.81

‌

$

11.12

‌

$

10.63

‌

$

10.04

‌

$

10.46

‌

Net

investment

income

(a)

..........................

0.07

‌

0.01

‌

0.09

‌

0.16

‌

0.12

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.74

)

(0.26

)

0.51

‌

0.61

‌

(0.40

)

Net

increase

(decrease)

from

investment

operations

.........

(1.67

)

(0.25

)

0.60

‌

0.77

‌

(0.28

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.08

)

(0.06

)

(0.11

)

(0.18

)

(0.14

)

Return

of

capital

................................

(0.01

)

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

................................

(0.09

)

(0.06

)

(0.11

)

(0.18

)

(0.14

)

Net

asset

value,

end

of

year

........................

$

9.05

‌

$

10.81

‌

$

11.12

‌

$

10.63

‌

$

10.04

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

...........................

(15.53

)%

(2.23

)%

5.66

%

7.78

%

(2.66

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

..................................

1.82

%

1.65

%

1.80

%

2.30

%

2.14

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

1.61

%

1.45

%

1.56

%

1.96

%

1.76

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

1.45

%

1.45

%

1.45

%

1.45

%

1.45

%

Net

investment

income

............................

0.64

%

0.09

%

0.84

%

1.55

%

1.21

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

8,781

‌

$

14,221

‌

$

25,922

‌

$

26,193

‌

$

35,014

‌

Portfolio

turnover

rate

(f)

.............................

1,027

%

715

%

745

%

837

%

892

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

679%

458%

508%

571%

590%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

87

Financial

Highlights

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Amount

is

greater

than

$(0.005)

per

share.

(e)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(f)

Not

annualized.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Annualized.

(i)

Offering

and

Board

realignment

and

consolidation

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

1.04%.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

(k)

Portfolio

turnover

rate

is

representative

of

the

portfolio

for

the

entire

year.

BlackRock

Impact

Mortgage

Fund

Class

K

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Period

from

01/25/18

(a)

to

09/30/18

Net

asset

value,

beginning

of

period

.................

$

10.81

‌

$

11.11

‌

$

10.62

‌

$

10.04

‌

$

10.27

‌

Net

investment

income

(b)

.........................

0.19

‌

0.12

‌

0.20

‌

0.25

‌

0.14

‌

Net

realized

and

unrealized

gain

(loss)

................

(1.77

)

(0.24

)

0.51

‌

0.62

‌

(0.20

)

Net

increase

(decrease)

from

investment

operations

........

(1.58

)

(0.12

)

0.71

‌

0.87

‌

(0.06

)

Distributions

(c)

–

–

–

–

–

From

net

investment

income

......................

(0.18

)

(0.18

)

(0.22

)

(0.29

)

(0.17

)

Return

of

capital

...............................

(0.01

)

—

‌

—

‌

(0.00

)

(d)

—

‌

Total

distributions

...............................

(0.19

)

(0.18

)

(0.22

)

(0.29

)

(0.17

)

Net

asset

value,

end

of

period

......................

$

9.04

‌

$

10.81

‌

$

11.11

‌

$

10.62

‌

$

10.04

‌

Total

Return

(e)

—

—

—

—

—

Based

on

net

asset

value

..........................

(14.73

)%

(1.11

)%

6.78

%

8.81

%

(0.60

)%

(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

.................................

0.69

%

0.54

%

0.64

%

1.06

%

1.03

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.56

%

0.40

%

0.51

%

0.91

%

0.86

%

(h)

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.40

%

0.40

%

0.40

%

0.40

%

0.40

%

(h)

Net

investment

income

...........................

1.84

%

1.14

%

1.79

%

2.44

%

2.03

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

......................

$

17,328

‌

$

16,753

‌

$

17,335

‌

$

5,031

‌

$

1,517

‌

Portfolio

turnover

rate

(j)

............................

1,027

%

715

%

745

%

837

%

892

%

(k)

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Period

from

01/25/18

to

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

679%

458%

508%

571%

590%

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

88

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Amount

is

greater

than

$(0.005)

per

share.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Additional

information

regarding

portfolio

turnover

rate

is

as

follows:

BlackRock

Impact

Mortgage

Fund

Class

R

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

....................

$

10.83

‌

$

11.14

‌

$

10.65

‌

$

10.06

‌

$

10.47

‌

Net

investment

income

(a)

..........................

0.12

‌

0.06

‌

0.16

‌

0.21

‌

0.18

‌

Net

realized

and

unrealized

gain

(loss)

.................

(1.75

)

(0.25

)

0.49

‌

0.61

‌

(0.40

)

Net

increase

(decrease)

from

investment

operations

.........

(1.63

)

(0.19

)

0.65

‌

0.82

‌

(0.22

)

Distributions

(b)

–

–

–

–

–

From

net

investment

income

.......................

(0.13

)

(0.12

)

(0.16

)

(0.23

)

(0.19

)

Return

of

capital

................................

(0.01

)

—

‌

—

‌

(0.00

)

(c)

—

‌

Total

distributions

................................

(0.14

)

(0.12

)

(0.16

)

(0.23

)

(0.19

)

Net

asset

value,

end

of

year

........................

$

9.06

‌

$

10.83

‌

$

11.14

‌

$

10.65

‌

$

10.06

‌

Total

Return

(d)

—

—

—

—

—

Based

on

net

asset

value

...........................

(15.16

)%

(1.73

)%

6.18

%

8.30

%

(2.07

)%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

..................................

1.45

%

1.23

%

1.36

%

2.11

%

1.64

%

Total

expenses

after

fees

waived

and/or

reimbursed

.........

1.11

%

0.95

%

1.06

%

1.46

%

1.26

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

................................

0.95

%

0.95

%

0.95

%

0.95

%

0.95

%

Net

investment

income

............................

1.19

%

0.59

%

1.51

%

2.06

%

1.72

%

Supplemental

Data

Net

assets,

end

of

year

(000)

.........................

$

3,494

‌

$

4,377

‌

$

5,133

‌

$

13,734

‌

$

19,660

‌

Portfolio

turnover

rate

(f)

.............................

1,027

%

715

%

745

%

837

%

892

%

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Portfolio

turnover

rate

(excluding

MDRs)

..............................

679%

458%

508%

571%

590%

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

89

Financial

Highlights

BlackRock

Income

Fund

Institutional

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

10.46

‌

$

10.22

‌

$

10.32

‌

$

10.13

‌

$

10.31

‌

Net

investment

income

(a)

.........................

0.34

‌

0.37

‌

0.44

‌

0.47

‌

0.43

‌

Net

realized

and

unrealized

gain

(loss)

................

(1.75

)

0.25

‌

(0.06

)

0.24

‌

(0.18

)

Net

increase

(decrease)

from

investment

operations

........

(1.41

)

0.62

‌

0.38

‌

0.71

‌

0.25

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.42

)

(0.38

)

(0.47

)

(0.52

)

(0.43

)

From

net

realized

gain

...........................

(0.13

)

—

‌

(0.01

)

—

‌

—

‌

Total

distributions

...............................

(0.55

)

(0.38

)

(0.48

)

(0.52

)

(0.43

)

Net

asset

value,

end

of

year

.......................

$

8.50

‌

$

10.46

‌

$

10.22

‌

$

10.32

‌

$

10.13

‌

Total

Return

(c)

(13.95)%

—

—

—

—

Based

on

net

asset

value

..........................

(13.95

)%

6.13

%

3.90

%

(d)

7.22

%

2.52

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

.................................

0.73

%

0.71

%

0.73

%

0.78

%

0.83

%

(f)

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.62

%

0.62

%

0.62

%

0.62

%

0.63

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.62

%

0.62

%

0.62

%

0.62

%

0.63

%

Net

investment

income

...........................

3.57

%

3.46

%

4.35

%

4.64

%

4.22

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

1,370,526

‌

$

2,622,329

‌

$

1,300,683

‌

$

919,409

‌

$

457,518

‌

Portfolio

turnover

rate

.............................

133

%

81

%

92

%

77

%

100

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees.

Excluding

the

recoupment

of

past

waived

and/or

reimbursed

fees

for

the

year

ended

September

30,

2018,

the

expense

ratio

would

have

been

0.82%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

90

BlackRock

Income

Fund

Investor

A

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

10.45

‌

$

10.22

‌

$

10.32

‌

$

10.13

‌

$

10.30

‌

Net

investment

income

(a)

.........................

0.32

‌

0.34

‌

0.41

‌

0.44

‌

0.40

‌

Net

realized

and

unrealized

gain

(loss)

................

(1.74

)

0.25

‌

(0.05

)

0.24

‌

(0.16

)

Net

increase

(decrease)

from

investment

operations

........

(1.42

)

0.59

‌

0.36

‌

0.68

‌

0.24

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.40

)

(0.36

)

(0.45

)

(0.49

)

(0.41

)

From

net

realized

gain

...........................

(0.13

)

—

‌

(0.01

)

—

‌

—

‌

Total

distributions

...............................

(0.53

)

(0.36

)

(0.46

)

(0.49

)

(0.41

)

Net

asset

value,

end

of

year

.......................

$

8.50

‌

$

10.45

‌

$

10.22

‌

$

10.32

‌

$

10.13

‌

Total

Return

(c)

(14.08)%

—

—

—

—

Based

on

net

asset

value

..........................

(14.08

)%

5.77

%

3.64

%

(d)

6.96

%

2.36

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

.................................

0.91

%

0.90

%

0.97

%

1.04

%

1.12

%

(f)

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.87

%

0.87

%

0.87

%

0.87

%

0.88

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.87

%

0.87

%

0.87

%

0.87

%

0.88

%

Net

investment

income

...........................

3.35

%

3.23

%

4.10

%

4.40

%

3.94

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

161,675

‌

$

230,457

‌

$

142,602

‌

$

102,857

‌

$

75,462

‌

Portfolio

turnover

rate

.............................

133

%

81

%

92

%

77

%

100

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees.

Excluding

the

recoupment

of

past

waived

and/or

reimbursed

fees

for

the

year

ended

September

30,

2018,

the

expense

ratio

would

have

been

1.11%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

91

Financial

Highlights

BlackRock

Income

Fund

Investor

C

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

10.46

‌

$

10.23

‌

$

10.32

‌

$

10.13

‌

$

10.31

‌

Net

investment

income

(a)

.........................

0.25

‌

0.27

‌

0.34

‌

0.37

‌

0.33

‌

Net

realized

and

unrealized

gain

(loss)

................

(1.75

)

0.24

‌

(0.05

)

0.23

‌

(0.18

)

Net

increase

(decrease)

from

investment

operations

........

(1.50

)

0.51

‌

0.29

‌

0.60

‌

0.15

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.33

)

(0.28

)

(0.37

)

(0.41

)

(0.33

)

From

net

realized

gain

...........................

(0.13

)

—

‌

(0.01

)

—

‌

—

‌

Total

distributions

...............................

(0.46

)

(0.28

)

(0.38

)

(0.41

)

(0.33

)

Net

asset

value,

end

of

year

.......................

$

8.50

‌

$

10.46

‌

$

10.23

‌

$

10.32

‌

$

10.13

‌

Total

Return

(c)

(14.81)%

—

—

—

—

Based

on

net

asset

value

..........................

(14.81

)%

4.97

%

2.97

%

(d)

6.16

%

1.50

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

.................................

1.67

%

1.66

%

1.73

%

1.79

%

1.84

%

(f)

Total

expenses

after

fees

waived

and/or

reimbursed

........

1.62

%

1.62

%

1.62

%

1.62

%

1.63

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

1.62

%

1.62

%

1.62

%

1.62

%

1.63

%

Net

investment

income

...........................

2.58

%

2.52

%

3.37

%

3.66

%

3.21

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

20,598

‌

$

35,555

‌

$

30,905

‌

$

32,197

‌

$

29,812

‌

Portfolio

turnover

rate

.............................

133

%

81

%

92

%

77

%

100

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(d)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees.

Excluding

the

recoupment

of

past

waived

and/or

reimbursed

fees

for

the

year

ended

September

30,

2018,

the

expense

ratio

would

have

been

1.83%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

92

BlackRock

Income

Fund

Class

K

Year

Ended

09/30/22

Year

Ended

09/30/21

Year

Ended

09/30/20

Year

Ended

09/30/19

Year

Ended

09/30/18

Net

asset

value,

beginning

of

year

...................

$

10.45

‌

$

10.22

‌

$

10.32

‌

$

10.13

‌

$

10.31

‌

Net

investment

income

(a)

.........................

0.35

‌

0.37

‌

0.44

‌

0.47

‌

0.44

‌

Net

realized

and

unrealized

gain

(loss)

................

(1.74

)

0.25

‌

(0.05

)

0.24

‌

(0.18

)

Net

increase

(decrease)

from

investment

operations

........

(1.39

)

0.62

‌

0.39

‌

0.71

‌

0.26

‌

Distributions

(b)

–

–

–

–

–

From

net

investment

income

......................

(0.43

)

(0.39

)

(0.48

)

(0.52

)

(0.44

)

From

net

realized

gain

...........................

(0.13

)

—

‌

(0.01

)

—

‌

—

‌

Total

distributions

...............................

(0.56

)

(0.39

)

(0.49

)

(0.52

)

(0.44

)

Net

asset

value,

end

of

year

.......................

$

8.50

‌

$

10.45

‌

$

10.22

‌

$

10.32

‌

$

10.13

‌

Total

Return

(c)

(13.82)%

—

—

—

—

Based

on

net

asset

value

..........................

(13.82

)%

6.09

%

3.95

%

(d)

7.27

%

2.57

%

Ratios

to

Average

Net

Assets

(e)

Total

expenses

.................................

0.58

%

0.57

%

0.65

%

0.69

%

0.74

%

(f)

Total

expenses

after

fees

waived

and/or

reimbursed

........

0.56

%

0.56

%

0.57

%

0.57

%

0.57

%

Total

expenses

after

fees

waived

and/or

reimbursed

and

excluding

interest

expense

...............................

0.56

%

0.56

%

0.57

%

0.57

%

0.57

%

Net

investment

income

...........................

3.65

%

3.52

%

4.40

%

4.65

%

4.37

%

Supplemental

Data

Net

assets,

end

of

year

(000)

........................

$

220,853

‌

$

382,891

‌

$

126,573

‌

$

80,072

‌

$

15,849

‌

Portfolio

turnover

rate

.............................

133

%

81

%

92

%

77

%

100

%

(a)

Based

on

average

shares

outstanding.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(c)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(d)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(e)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(f)

Includes

recoupment

of

past

waived

and/or

reimbursed

fees

with

no

financial

impact

to

the

expense

ratios.

See

notes

to

financial

statements.

Notes

to

Financial

Statements

93

Notes

to

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

V (the

“Trust”)

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

an

open-end

management

investment

company.

The

Trust

is

organized

as

a

Massachusetts

business trust.

The

following,

each

of

which

is

a

series

of

the

Trust, are

referred

to

herein

collectively

as

the

“Funds”

or

individually

as

a

“Fund”:

Each

Fund

offers

multiple

classes

of

shares.

All

classes

of

shares

have

identical

voting,

dividend,

liquidation

and

other

rights

and

are

subject

to

the

same

terms

and

conditions,

except

that

certain

classes

bear

expenses

related

to

the

shareholder

servicing

and

distribution

of

such

shares.

Institutional

and

Class

K

Shares

are

sold

only

to

certain

eligible

investors.

Investor

A,

Investor

C

and

Class

R

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares,

and

Investor

C

and

Class

R

Shares

also

bear

certain

expenses

related

to

the

distribution

of

such

shares.

Investor

A

and

Investor

C

Shares

are

generally

available

through

financial

intermediaries.

Class

R

Shares

are

sold

only

to

certain

employer-sponsored

retirement

plans.

Each

class

has

exclusive

voting

rights

with

respect

to

matters

relating

to

its

shareholder

servicing

and

distribution

expenditures

(except

that

Investor

C

shareholders

may

vote

on

material

changes

to

the

Investor

A

Shares

distribution

and

service

plan).

(a)

Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

(b)

A

CDSC

of

1.00%

is

assessed

on

certain

redemptions

of

Investor

C

Shares

made

within

one

year

after

purchase.

The

Funds,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

“Manager”) or

its

affiliates,

are

included

in

a

complex

of

open-end

non-index

fixed-income

funds

and

all

BlackRock-advised

closed-end

funds

referred

to

as

the

BlackRock

Fixed-Income

Complex.

2.

SIGNIFICANT

ACCOUNTING

POLICIES

The

financial

statements

are

prepared

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(“U.S.

GAAP”),

which

may

require

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

in

the

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

increases

and

decreases

in

net

assets

from

operations

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Each

Fund

is

considered

an

investment

company

under

U.S.

GAAP

and

follows

the

accounting

and

reporting

guidance

applicable

to

investment

companies.

Below

is

a

summary

of

significant

accounting

policies: 

Investment

Transactions

and

Income

Recognition:

For

financial

reporting

purposes,

investment

transactions

are

recorded

on

the

dates

the

transactions

are

executed.

Realized

gains

and

losses

on

investment

transactions

are

determined

using

the

specific

identification

method.

Dividend

income

and

capital

gain

distributions,

if

any,

are

recorded

on

the

ex-dividend

dates.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

dates

at

fair

value.

Dividends

from

foreign

securities

where

the

ex-dividend

dates

may

have

passed

are

subsequently

recorded

when

the

Funds

are

informed

of

the

ex-dividend

dates.

Under

the

applicable

foreign

tax

laws,

a

withholding

tax

at

various

rates

may

be

imposed

on

capital

gains,

dividends

and

interest.

Upon

notification

from

issuers,

a

portion

of

the

dividend

income

received

from

a

real

estate

investment

trust

may

be

redesignated

as

a

reduction

of

cost

of

the

related

investment

and/or

realized

gain.

Interest

income,

including

amortization

and

accretion

of

premiums

and

discounts

on

debt

securities

and

payment-in-kind

interest,

are

recognized

daily

on

an

accrual

basis.

Income,

expenses

and

realized

and

unrealized

gains

and

losses

are

allocated

daily

to

each

class

based

on

its

relative

net

assets. For

convertible

securities,

premiums

attributable

to

the

debt

instrument

are

amortized,

but

premiums

attributable

to

the

conversion

feature

are

not

amortized.

Foreign

Currency

Translation:

Each

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”).

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

Each

Fund

does

not

isolate

the

effect

of

fluctuations

in

foreign

exchange

rates

from

the

effect

of

fluctuations

in

the

market

prices

of

investments

for

financial

reporting

purposes.

Accordingly,

the

effects

of

changes

in

exchange

rates

on

investments

are

not

segregated

in

the

Statements

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

Each

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Foreign

Taxes:

The

Funds

may

be

subject

to

foreign

taxes

(a

portion

of

which

may

be

reclaimable)

on

income,

stock

dividends,

capital

gains

on

investments,

or

certain

foreign

currency

transactions.

All

foreign

taxes

are

recorded

in

accordance

with

the

applicable

foreign

tax

regulations

and

rates

that

exist

in

the

foreign

jurisdictions

in

which

each

Fund

invests.

These

foreign

taxes,

if

any,

are

paid

by

each

Fund

and

are

reflected

in

its

Statements

of

Operations

as

follows:

foreign

taxes

withheld

at

source

are

presented

as

a

reduction

of

income,

foreign

taxes

on

securities

lending

income

are

presented

as

a

reduction

of

securities

lending

income,

foreign

taxes

on

stock

dividends

Fund

Name

Herein

Referred

To

As

Diversification

Classification

BlackRock

GNMA

Portfolio

..................................................

GNMA

Diversified

BlackRock

Impact

Mortgage

Fund

.............................................

Impact

Mortgage

Diversified

BlackRock

Income

Fund

....................................................

Income

Fund

Diversified

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

(“CDSC”)

Conversion

Privilege

Institutional,

Class

K

and

Class

R

Shares

.............................

No

No

None

Investor

A

Shares

............................................

Yes

No

(a)

None

Investor

C

Shares

...........................................

No

Yes

(b)

To

Investor

A

Shares

after

approximately

8

years

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

94

are

presented

as

“Foreign

taxes

withheld”,

and

foreign

taxes

on

capital

gains

from

sales

of

investments

and

foreign

taxes

on

foreign

currency

transactions

are

included

in

their

respective

net

realized

gain

(loss)

categories.

Foreign

taxes

payable

or

deferred

as

of

September

30,

2022

,

if

any,

are

disclosed

in

the Statements

of

Assets

and

Liabilities.

The

Funds

file

withholding

tax

reclaims

in

certain

jurisdictions

to

recover

a

portion

of

amounts

previously

withheld.

The

Funds

may

record

a

reclaim

receivable

based

on

collectability,

which

includes

factors

such

as

the

jurisdiction’s

applicable

laws,

payment

history

and

market

convention.

The

Statements

of

Operations

include

tax

reclaims

recorded

as

well

as

professional

and

other

fees,

if

any,

associated

with

recovery

of

foreign

withholding

taxes. 

Collateralization:

If

required

by

an

exchange

or

counterparty

agreement,

the

Funds

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-

dealer

or

custodian

as

collateral

for

certain

investments.  

Distributions:

Distributions

paid

by

the

Funds

are

recorded

on

the

ex-dividend

dates.

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly.

Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

dates

and

made

at

least

annually.

The

portion

of

distributions,

if

any,

that

exceeds

a

fund’s

current

and

accumulated

earnings

and

profits,

as

measured

on

a

tax

basis,

constitute

a

non-taxable

return

of

capital.

The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP.  

Deferred

Compensation

Plan:

Under

the

Deferred

Compensation

Plan

(the

“Plan”)

approved

by

the

Board

of

Trustees

of

the

Trust

(the

“Board”), the 

trustees

who

are

not

“interested

persons”

of

the

Funds,

as

defined

in

the

1940

Act

(“Independent

Trustees

”),

may

defer

a

portion

of

their

annual

complex-wide

compensation.

Deferred

amounts

earn

an

approximate

return

as

though

equivalent

dollar

amounts

had

been

invested

in

common

shares

of

certain

funds

in

the

BlackRock

Fixed-Income

Complex

selected

by

the

Independent

Trustees

.

This

has

the

same

economic

effect

for

the

Independent 

Trustees

as

if

the

Independent 

Trustees

had

invested

the

deferred

amounts

directly

in

certain

funds

in

the

BlackRock

Fixed-Income

Complex.  

The

Plan

is

not

funded

and

obligations

thereunder

represent

general

unsecured

claims

against

the

general

assets

of

each

Fund,

as

applicable.

Deferred

compensation

liabilities,

if

any, are

included

in

the

Trustees’

and

Officer’s

fees

payable

in

the

Statements

of

Assets

and

Liabilities

and

will

remain

as

a

liability

of

the

Funds

until

such

amounts

are

distributed

in

accordance

with

the

Plan. Net

appreciation

(depreciation)

in

the

value

of

participants’

deferral

accounts

is

allocated

among

the

participating

funds

in

the

BlackRock

Fixed-Income

Complex

and

reflected

as

Trustee

and

Officer

expense

on

the

Statements

of

Operations.

The

Trustee

and

Officer

expense

may

be

negative

as

a

result

of

a

decrease

in

value

of

the

deferred

accounts.

Indemnifications:

In

the

normal

course

of

business,

a

Fund

enters

into

contracts

that

contain

a

variety

of

representations

that

provide

general

indemnification.

A

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

because

it

involves

future

potential

claims

against

a

Fund,

which

cannot

be

predicted

with

any

certainty.

Other:

Expenses

directly

related

to

a

Fund

or

its

classes

are

charged

to

that

Fund

or

the

applicable

class.

Expenses

directly

related

to

the

Funds

and

other

shared

expenses

prorated

to

the

Funds

are

allocated

daily

to

each

class

based

on

their

relative

net

assets

or

other

appropriate

methods.

Other

operating

expenses

shared

by

several

funds,

including

other

funds

managed

by

the

Manager,

are

prorated

among

those

funds

on

the

basis

of

relative

net

assets

or

other

appropriate

methods. 

3.

INVESTMENT

VALUATION

AND

FAIR

VALUE

MEASUREMENTS 

Investment

Valuation

Policies:

 Each

Fund’s

investments

are

valued

at

fair

value

(also

referred

to

as

“market

value”

within

the

financial

statements)

each

day

that

the

Fund

is

open

for

business

and,

for

financial

reporting

purposes,

as

of

the

report

date.

U.S.

GAAP

defines

fair

value

as

the

price

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Board

of

each

Fund

has

approved

the

designation

of

each

Fund’s

Manager

as

the

valuation

designee

for

each

Fund.

Each

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

the

Managers’

policies.

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value.

The

Manager

has

formed

a

committee

(the

“Valuation

Committee”)

to

develop

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments,

with

assistance

from

other

BlackRock

pricing

committees.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

each

Fund’s

assets

and

liabilities: 

Equity

investments

traded

on

a

recognized

securities

exchange

are

valued

at

that

day’s official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

Equity

investments

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services. Floating

rate

loan

interests

are

valued

at

the

mean

of

the

bid

prices

from

one

or

more

independent

brokers

or

dealers

as

obtained

from

a

third-party

pricing

service. Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day’s

published net

asset

value

(“NAV”).

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

or

trade price

on

the

exchange

where

the

contract

is

traded.

Forward

foreign

currency

exchange

contracts

are

valued

at

the

mean

between

the

bid

and

ask

prices

and

are

determined

as

of

the

close

of

trading

on

the

NYSE

based

Notes

to

Financial

Statements

(continued)

95

Notes

to

Financial

Statements

on

that

day’s

prevailing

forward

exchange

rate

for

the

underlying

currencies.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day’s

price will

be

used,

unless

it

is

determined

that

the

prior

day’s

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

Generally,

trading

in

foreign

instruments

is

substantially

completed

each

day

at

various

times

prior

to

the

close

of

trading

on

the

NYSE.

Each

business

day,

the

Funds

use

current

market

factors

supplied

by

independent

pricing

services

to

value

certain

foreign

instruments

(“Systematic

Fair

Value

Price”).

The

Systematic

Fair

Value

Price

is

designed

to

value

such

foreign

securities

at

fair

value

as

of

the

close

of

trading

on

the

NYSE,

which

follows

the

close

of

the

local

markets.

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Valuation

Committee

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Valuation

Committee

seeks

to

determine

the

price

that

each

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Valuation

Committee,

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

For

investments

in

equity

or

debt

issued

by

privately

held

companies

or

funds

(“Private

Company”

or

collectively,

the

“Private

Companies”)

and

other

Fair

Valued

Investments,

the

fair

valuation

approaches

that

are

used

by

the

Valuation

Committee

and

third-party

pricing

services

utilized

by

the

Valuation

Committee

include one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

Investments

in

series

of

preferred

stock

issued

by

Private

Companies

are

typically

valued

utilizing

market

approach

in

determining

the

enterprise

value

of

the

company.

Such

investments

often

contain

rights

and

preferences

that

differ

from

other

series

of

preferred

and

common

stock

of

the

same

issuer.

Enterprise

valuation

techniques

such

as

an

option

pricing

model

(“OPM”),

a

probability

weighted

expected

return

model

(“PWERM”),

current

value

method or

a

hybrid

of

those

techniques

are

used

as

deemed

appropriate

under

the

circumstances.

The

use

of these

valuation techniques

involve

a

determination

of

the

exit

scenarios

of

the

investment

in

order

to

appropriately

allocate

the

enterprise

value

of

the

company

among

the

various

parts

of

its

capital

structure. 

The

Private

Companies

are

not

subject

to

the

public

company

disclosure,

timing,

and

reporting

standards

applicable

to other

investments

held

by

a

Fund.

Typically,

the

most

recently

available

information

by

a

Private

Company

is

as

of

a

date

that

is

earlier

than

the

date

a

Fund

is

calculating

its

NAV.

This

factor

may

result

in

a

difference

between

the

value

of

the

investment

and

the

price

a

Fund

could

receive

upon

the

sale

of

the

investment. 

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

These

inputs

to

valuation

techniques

are

categorized

into

a

fair

value

hierarchy

consisting

of

three

broad

levels

for

financial reporting purposes

as

follows: 

Level

1

—

Unadjusted

price

quotations

in

active

markets/exchanges

for

identical

assets

or

liabilities

that

each

Fund

has

the

ability

to

access;

Level

2

—

Other

observable

inputs

(including,

but

not

limited

to,

quoted

prices

for

similar

assets

or

liabilities

in

markets

that

are

active,

quoted

prices

for

identical

or

similar

assets

or

liabilities

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

for

the

assets

or

liabilities

(such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks

and

default

rates)

or

other

market–corroborated

inputs);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Valuation

Committee’s

assumptions

used

in

determining

the

fair

value

of

financial

instruments).

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

Standard

Inputs

Generally

Considered

By

The

Valuation

Committee

And

Third-Party

Pricing

Services

Market

approach

........................

(i)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(i)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(i)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

96

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

Private

Companies

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

As

of

September

30,

2022,

certain

investments

of

the

Income

Fund were fair valued

using

NAV per

share as

no

quoted

market

value

is

available

and

therefore

have

been

excluded

from

the

fair

value

hierarchy.

4.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

Multiple

Class

Pass-Through

Securities:

Multiple

class

pass-through

securities,

including

collateralized

mortgage

obligations

(“CMOs”)

and

commercial

mortgage-backed

securities,

may

be

issued

by

Ginnie

Mae,

U.S.

Government

agencies

or

instrumentalities

or

by

trusts

formed

by

private

originators

of,

or

investors

in,

mortgage

loans.

In

general,

CMOs

are

debt

obligations

of

a

legal

entity

that

are

collateralized

by

a

pool

of

residential

or

commercial

mortgage

loans

or

Mortgage

Assets.

The

payments

on

these

are

used

to

make

payments

on

the

CMOs

or

multiple

pass-through

securities.

Multiple

class

pass-through

securities

represent

direct

ownership

interests

in

the

Mortgage

Assets.

Classes

of

CMOs

include

interest

only

(“IOs”),

principal

only

(“POs”),

planned

amortization

classes

and

targeted

amortization

classes.

IOs

and

POs

are

stripped

mortgage-backed

securities

representing

interests

in

a

pool

of

mortgages,

the

cash

flow

from

which

has

been

separated

into

interest

and

principal

components.

IOs

receive

the

interest

portion

of

the

cash

flow

while

POs

receive

the

principal

portion.

IOs

and

POs

can

be

extremely

volatile

in

response

to

changes

in

interest

rates.

As

interest

rates

rise

and

fall,

the

value

of

IOs

tends

to

move

in

the

same

direction

as

interest

rates.

POs

perform

best

when

prepayments

on

the

underlying

mortgages

rise

since

this

increases

the

rate

at

which

the

principal

is

returned

and

the

yield

to

maturity

on

the

PO.

When

payments

on

mortgages

underlying

a

PO

are

slower

than

anticipated,

the

life

of

the

PO

is

lengthened

and

the

yield

to

maturity

is

reduced.

If

the

underlying

Mortgage

Assets

experience

greater

than

anticipated

prepayments

of

principal,

a

fund’s

initial

investment

in

the

IOs

may

not

fully

recoup. 

Stripped

Mortgage-Backed

Securities:

Stripped

mortgage-backed

securities

are

typically

issued

by

the

U.S.

Government,

its

agencies

and

instrumentalities.

Stripped

mortgage-backed

securities

are

usually

structured

with

two

classes

that

receive

different

proportions

of

the

interest

(IOs)

and

principal

(POs)

distributions

on

a

pool

of

Mortgage

Assets.

Stripped

mortgage-backed

securities

may

be

privately

issued.

Zero-Coupon

Bonds:

Zero-coupon

bonds

are

normally

issued

at

a

significant

discount

from

face

value

and

do

not

provide

for

periodic

interest

payments.

These

bonds

may

experience

greater

volatility

in

market

value

than

other

debt

obligations

of

similar

maturity

which

provide

for

regular

interest

payments. 

Capital

Securities

and

Trust

Preferred

Securities:

Capital

securities,

including

trust

preferred

securities,

are

typically

issued

by

corporations,

generally

in

the

form

of

interest-bearing

notes

with

preferred

securities

characteristics.

In

the

case

of

trust

preferred

securities,

an

affiliated

business

trust

of

a

corporation

issues

these

securities,

generally

in

the

form

of

beneficial

interests

in

subordinated

debentures

or

similarly

structured

securities.

The

securities

can

be

structured

with

either

a

fixed

or

adjustable

coupon

that

can

have

either

a

perpetual

or

stated

maturity

date.

For

trust

preferred

securities,

the

issuing

bank

or

corporation

pays

interest

to

the

trust,

which

is

then

distributed

to

holders

of

these

securities

as

a

dividend.

Dividends

can

be

deferred

without

creating

an

event

of

default

or

acceleration,

although

maturity

cannot

take

place

unless

all

cumulative

payment

obligations

have

been

met.

The

deferral

of

payments

does

not

affect

the

purchase

or

sale

of

these

securities

in

the

open

market.

These

securities

generally

are

rated

below

that

of

the

issuing

company’s

senior

debt

securities

and

are

freely

callable

at

the

issuer’s

option. 

Preferred

Stocks:

Preferred

stock

has

a

preference

over

common

stock

in

liquidation

(and

generally

in

receiving

dividends

as

well),

but

is

subordinated

to

the

liabilities

of

the

issuer

in

all

respects.

As

a

general

rule,

the

market

value

of

preferred

stock

with

a

fixed

dividend

rate

and

no

conversion

element

varies

inversely

with

interest

rates

and

perceived

credit

risk,

while

the

market

price

of

convertible

preferred

stock

generally

also

reflects

some

element

of

conversion

value.

Because

preferred

stock

is

junior

to

debt

securities

and

other

obligations

of

the

issuer,

deterioration

in

the

credit

quality

of

the

issuer

will

cause

greater

changes

in

the

value

of

a

preferred

stock

than

in

a

more

senior

debt

security

with

similar

stated

yield

characteristics.

Unlike

interest

payments

on

debt

securities,

preferred

stock

dividends

are

payable

only

if

declared

by

the

issuer’s

board

of

directors.

Preferred

stock

also

may

be

subject

to

optional

or

mandatory

redemption

provisions. 

Notes

to

Financial

Statements

(continued)

97

Notes

to

Financial

Statements

Warrants:

Warrants

entitle

a

fund

to

purchase

a

specified

number

of

shares

of

common

stock

and

are

non-income

producing.

The

purchase

price

and

number

of

shares

are

subject

to

adjustment

under

certain

conditions

until

the

expiration

date

of

the

warrants,

if

any.

If

the

price

of

the

underlying

stock

does

not

rise

above

the

strike

price

before

the

warrant

expires,

the

warrant

generally

expires

without

any

value

and

a

fund

will

lose

any

amount

it

paid

for

the

warrant.

Thus,

investments

in

warrants

may

involve

more

risk

than

investments

in

common

stock.

Warrants

may

trade

in

the

same

markets

as

their

underlying

stock;

however,

the

price

of

the

warrant

does

not

necessarily

move

with

the

price

of

the

underlying

stock. 

Floating

Rate

Loan

Interests:

Floating

rate

loan

interests

are

typically

issued

to

companies

(the

“borrower”)

by

banks,

other

financial

institutions,

or

privately

and

publicly

offered

corporations

(the

“lender”).

Floating

rate

loan

interests

are

generally

non-investment

grade,

often

involve

borrowers

whose

financial

condition

is

troubled

or

uncertain

and

companies

that

are

highly

leveraged

or

in

bankruptcy

proceedings.

In

addition,

transactions

in

floating

rate

loan

interests

may

settle

on

a

delayed

basis,

which

may

result

in

proceeds

from

the

sale

not

being

readily

available

for

a

fund

to

make

additional

investments

or

meet

its

redemption

obligations.

Floating

rate

loan

interests

may

include

fully

funded

term

loans

or

revolving

lines

of

credit.

Floating

rate

loan

interests

are

typically

senior

in

the

corporate

capital

structure

of

the

borrower.

Floating

rate

loan

interests

generally

pay

interest

at

rates

that

are

periodically

determined

by

reference

to

a

base

lending

rate

plus

a

premium.

Since

the

rates

reset

only

periodically,

changes

in

prevailing

interest

rates

(and

particularly

sudden

and

significant

changes)

can

be

expected

to

cause

some

fluctuations

in

the

NAV

of

a

fund

to

the

extent

that

it

invests

in

floating

rate

loan

interests.

The

base

lending

rates

are

generally

the

lending

rate

offered

by

one

or

more

European

banks,

such

as

the

London

Interbank

Offered

Rate

(“LIBOR”),

the

prime

rate

offered

by

one

or

more

U.S.

banks

or

the

certificate

of

deposit

rate.

Floating

rate

loan

interests

may

involve

foreign

borrowers,

and

investments

may

be

denominated

in

foreign

currencies.

These

investments

are

treated

as

investments

in

debt

securities

for

purposes

of

a

fund’s

investment

policies. 

When

a

fund

purchases

a

floating

rate

loan

interest,

it

may

receive

a

facility

fee

and

when

it

sells

a

floating

rate

loan

interest,

it

may

pay

a

facility

fee.

On

an

ongoing

basis,

a

fund

may

receive

a

commitment

fee

based

on

the

undrawn

portion

of

the

underlying

line

of

credit

amount

of

a

floating

rate

loan

interest.

Facility

and

commitment

fees

are

typically

amortized

to

income

over

the

term

of

the

loan

or

term

of

the

commitment,

respectively.

Consent

and

amendment

fees

are

recorded

to

income

as

earned.

Prepayment

penalty

fees,

which

may

be

received

by

a

fund

upon

the

prepayment

of

a

floating

rate

loan

interest

by

a

borrower,

are

recorded

as

realized

gains.

A

fund

may

invest

in

multiple

series

or

tranches

of

a

loan.

A

different

series

or

tranche

may

have

varying

terms

and

carry

different

associated

risks.

Floating

rate

loan

interests

are

usually

freely

callable

at

the

borrower’s

option.

A

fund

may

invest

in

such

loans

in

the

form

of

participations

in

loans

(“Participations”)

or

assignments

(“Assignments”)

of

all

or

a

portion

of

loans

from

third

parties.

Participations

typically

will

result

in

a

fund

having

a

contractual

relationship

only

with

the

lender,

not

with

the

borrower.

A

fund

has

the

right

to

receive

payments

of

principal,

interest

and

any

fees

to

which

it

is

entitled

only

from

the

lender

selling

the

Participation

and

only

upon

receipt

by

the

lender

of

the

payments

from

the

borrower.

In

connection

with

purchasing

Participations,

a

fund

generally

will

have

no

right

to

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement,

nor

any

rights

of

offset

against

the

borrower.

A

fund

may

not

benefit

directly

from

any

collateral

supporting

the

loan

in

which

it

has

purchased

the

Participation.

As

a

result,

a

fund

assumes

the

credit

risk

of

both

the

borrower

and

the

lender

that

is

selling

the

Participation.

A

fund’s

investment

in

loan

participation

interests

involves

the

risk

of

insolvency

of

the

financial

intermediaries

who

are

parties

to

the

transactions.

In

the

event

of

the

insolvency

of

the

lender

selling

the

Participation,

a

fund

may

be

treated

as

a

general

creditor

of

the

lender

and

may

not

benefit

from

any

offset

between

the

lender

and

the

borrower.

Assignments

typically

result

in

a

fund

having

a

direct

contractual

relationship

with

the

borrower,

and

a

fund

may

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

In

connection

with

floating

rate

loan

interests,

the

Funds

may

also

enter

into

unfunded

floating

rate

loan

interests

(“commitments”).

In

connection

with

these

commitments,

a

fund

earns

a

commitment

fee,

typically

set

as

a

percentage

of

the

commitment

amount.

Such

fee

income,

which

is

included

in

interest

income

in

the

Statements

of

Operations,

is

recognized

ratably

over

the

commitment

period.

Unfunded

floating

rate

loan

interests

are

marked-to-market

daily,

and

any

unrealized

appreciation

(depreciation)

is

included

in

the

Statements

of

Assets

and

Liabilities

and

Statements

of

Operations.

As

of

period

end,

the

Income

Fund

had

the

following

unfunded

floating

rate

loan

interests: 

Forward

Commitments,

When-Issued

and

Delayed

Delivery

Securities

:

The

Funds

may

purchase

securities

on

a

when-issued

basis

and

may

purchase

or

sell

securities

on

a

forward

commitment

basis.

Settlement

of

such

transactions

normally

occurs

within

a

month

or

more

after

the

purchase

or

sale

commitment

is

made. The

Funds

may

purchase

securities

under

such

conditions

with

the

intention

of

actually

acquiring

them

but

may

enter

into

a

separate

agreement

to

sell

the

securities

before

the

settlement

date.

Since

the

value

of

securities

purchased

may

fluctuate

prior

to

settlement, the

Funds

may

be

required

to

pay

more

at

settlement

than

the

security

is

worth.

In

addition,

a

fund

is

not

entitled

to

any

of

the

interest

earned

prior

to

settlement.

When

purchasing

a

security

on

a

delayed

delivery

basis, the

Funds

assume

the

rights

and

risks

of

ownership

of

the

security,

including

the

risk

of

price

and

yield

fluctuations.

In

the

event

of

default

by

the

counterparty, the

Funds'

maximum

amount

of

loss

is

the

unrealized

appreciation

of

unsettled

when-issued

transactions.

TBA

Commitments:

TBA

commitments

are

forward

agreements

for

the

purchase

or

sale

of

securities,

including

mortgage-backed

securities

for

a

fixed

price,

with

payment

and

delivery

on

an

agreed

upon

future

settlement

date.

The

specific

securities

to

be

delivered

are

not

identified

at

the

trade

date.

However,

delivered

securities

must

meet

specified

terms,

including

issuer,

rate

and

mortgage

terms.

When

entering

into

TBA

commitments,

a

fund

may

take

possession

of

or

deliver

the

underlying

mortgage-backed

securities

but

can

extend

the

settlement

or

roll

the

transaction.

TBA

commitments

involve

a

risk

of

loss

if

the

value

of

the

security

to

be

purchased

or

sold

declines

or

increases,

respectively,

prior

to

settlement

date,

if

there

are

expenses

or

delays

in

connection

with

the

TBA

transactions,

or

if

the

counterparty

fails

to

complete

the

transaction.

In

order

to

better

define

contractual

rights

and

to

secure

rights

that

will

help

a

fund

mitigate its

counterparty

risk,

TBA

commitments

may

be

entered

into

by

a

fund

under

Master

Securities

Forward

Transaction

Agreements

(each,

an

“MSFTA”).

An

MSFTA

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

default

and/or

termination

event. The

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

the

collateral

currently

pledged

by

a

fund

and

the

counterparty. Cash

collateral

that

has

been

pledged

to

cover

the

obligations

of

a

fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

for

TBA

commitments

or

cash

received

as

collateral

for

TBA

commitments,

respectively.

Non-cash

collateral

pledged

by

a

fund,

if

any,

is

noted

in

the

Schedules

of

Fund

Name

Borrower

Par

Commitment

Amount

Value

Unrealized

Appreciation

(Depreciation)

Income

Fund

Trident

TPI

Holdings,

Inc.,

Delayed

Draw

Term

Loan

B3

.......

$

46,059‌

$

46,059‌

$

43,549‌

$

(2,510‌)

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

98

Investments. Typically,

a

fund

is

permitted

to

sell,

re-pledge

or

use

the

collateral

it

receives;

however,

the

counterparty

is

not

permitted

to

do

so.

To

the

extent

amounts

due

to

a

fund

are

not

fully

collateralized,

contractually

or

otherwise,

a

fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Mortgage

Dollar

Roll

Transactions

:

The

Funds

may

sell

TBA

mortgage-backed

securities

and

simultaneously

contract

to

repurchase

substantially

similar

(i.e.,

same

type,

coupon

and

maturity)

securities

on

a

specific

future

date

at

an

agreed

upon

price.

During

the

period

between

the

sale

and

repurchase,

a

fund

is

not

entitled

to

receive

interest

and

principal

payments

on

the

securities

sold.

Mortgage

dollar

roll

transactions

are

treated

as

purchases

and

sales

and

a

fund realizes

gains

and

losses

on

these

transactions.

Mortgage

dollar

rolls

involve

the

risk

that

the

market

value

of

the

securities

that

a

fund

is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities. 

Reverse

Repurchase

Agreements:

Reverse

repurchase

agreements

are

agreements

with

qualified

third-party

broker

dealers

in

which

a

fund

sells

securities

to

a

bank

or

broker-dealer

and

agrees

to

repurchase

the

same

securities

at

a

mutually

agreed

upon

date

and

price.

A

fund

receives

cash

from

the

sale

to

use

for

other

investment

purposes.

During

the

term

of

the

reverse

repurchase

agreement,

a

fund

continues

to

receive

the

principal

and

interest

payments

on

the

securities

sold.

Certain

agreements

have

no

stated

maturity

and

can

be

terminated

by

either

party

at

any

time.

Interest

on

the

value

of

the

reverse

repurchase

agreements

issued

and

outstanding

is

based

upon

competitive

market

rates

determined

at

the

time

of

issuance.

A

fund

may

utilize

reverse

repurchase

agreements

when

it

is

anticipated

that

the

interest

income

to

be

earned

from

the

investment

of

the

proceeds

of

the

transaction

is

greater

than

the

interest

expense

of

the

transaction.

Reverse

repurchase

agreements

involve

leverage

risk.

If

a

fund

suffers

a

loss

on

its

investment

of

the

transaction

proceeds

from

a

reverse

repurchase

agreement,

a

fund

would

still

be

required

to

pay

the

full

repurchase

price.

Further,

a

fund

remains

subject

to

the

risk

that

the

market

value

of

the

securities

repurchased

declines

below

the

repurchase

price.

In

such

cases,

a

fund

would

be

required

to

return

a

portion

of

the

cash

received

from

the

transaction

or

provide

additional

securities

to

the

counterparty. 

Cash

received

in

exchange

for

securities

delivered

plus

accrued

interest

due

to

the

counterparty

is

recorded

as

a

liability

in

the

Statements

of

Assets

and

Liabilities

at

face

value

including

accrued

interest.

Due

to

the

short-term

nature

of

the

reverse

repurchase

agreements,

face

value

approximates

fair

value.

Interest

payments

made

by

a

fund

to

the

counterparties

are

recorded

as

a

component

of

interest

expense

in

the

Statements

of

Operations.

In

periods

of

increased

demand

for

the

security,

a

fund

may

receive

a

fee

for

the

use

of

the

security

by

the

counterparty,

which

may

result

in

interest

income

to

a

fund.

For

the

year

ended

September

30,

2022,

the

average

daily

amount

of

reverse

repurchase

agreements

outstanding and

the

weighted

average

interest

rate

for

the

Funds

were

as

follows:

Reverse

repurchase

transactions are

entered

into

by

a

fund

under

Master

Repurchase

Agreements

(each,

an

“MRA”),

which

permit

a

fund,

under

certain

circumstances,

including

an

event

of

default

(such

as

bankruptcy

or

insolvency),

to

offset

payables

and/or

receivables

under

the

MRA

with

collateral

held

and/or

posted

to

the

counterparty

and

create

one

single

net

payment

due

to

or

from

a

fund.

With

reverse

repurchase

transactions,

typically

a

fund

and

counterparty

under

an

MRA

are

permitted

to

sell,

re-

pledge,

or

use

the

collateral

associated

with

the

transaction.

Bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

such

a

right

of

offset

in

the

event

of

the

MRA

counterparty’s

bankruptcy

or

insolvency.

Pursuant

to

the

terms

of

the

MRA,

a

fund

receives

or

posts

securities

and

cash

as

collateral

with

a

market

value

in

excess

of

the

repurchase

price

to

be

paid

or

received

by

a

fund

upon

the

maturity

of

the

transaction.

Upon

a

bankruptcy

or

insolvency

of

the

MRA

counterparty,

a

fund

is

considered

an

unsecured

creditor

with

respect

to

excess

collateral

and,

as

such,

the

return

of

excess

collateral

may

be

delayed.

As

of

period

end,

the

following

table

is

a

summary

of

a

Fund’s

open

reverse

repurchase

agreements by

counterparty

which

are

subject

to

offset

under

an

MRA

on

a

net

basis:  

Fund

Name

Average

Borrowing

Weighted

Average

Interest

Rate

GNMA

.......................................................................................

$

35,291,131‌

1.65‌%

Impact

Mortgage

................................................................................

69,152,901‌

1.09‌

Counterparty

Reverse

Repurchase

Agreements

Fair

Value

of

Non-Cash

Collateral

Pledged

Including

Accrued

Interest

(a)

(a)

Cash

Collateral

Pledged/Received

Net

Amount

(b)

GNMA

Credit

Suisse

AG

................................

$

(80,359,283‌)

$

80,359,283‌

$

—‌

$

—‌

(c)

(a)

Collateral,

if

any,

with

a

value

of

$81,325,186

has

been

pledged

in

connection

with

open

reverse

repurchase

agreements.

Excess

of

collateral

pledged

to

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

Counterparty

Reverse

Repurchase

Agreements

Fair

Value

of

Non-Cash

Collateral

Pledged

Including

Accrued

Interest

(a)

(a)

Cash

Collateral

Pledged/Received

(a)

Net

Amount

(b)

Impact

Mortgage

BofA

Securi

t

i

es,

Inc.

..............................

$

(109,101,297)‌

$

108,026,708‌

$

1,074,589‌

$

—‌

(c)

(a)

Collateral,

if

any,

with

a

value

of

$108,026,708

and

cash

collateral

with

a

value

of

$3,861,535

has

been

pledged

in

connection

with

open

reverse

repurchase

agreements.

Excess

of

collateral

pledged

to

the

individual

counterparty

is

not

shown

for

financial

reporting

purposes.

Notes

to

Financial

Statements

(continued)

99

Notes

to

Financial

Statements

5.

Derivative

Financial

Instruments

The

Funds

engage

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Funds

and/or

to

manage

their

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Schedules

of

Investments.

These

contracts

may

be

transacted

on

an

exchange

or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk)

.

Futures

contracts

are

exchange-traded agreements

between

the

Funds

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Funds

are

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Funds

agree

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

rates,

foreign

currency

exchange

rates

or

underlying

assets.

Forward

Foreign

Currency

Exchange

Contracts

:

Forward

foreign

currency

exchange

contracts

are

entered

into

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

A

forward

foreign

currency

exchange

contract

is

an

agreement

between

two

parties

to

buy

and

sell

a

currency

at

a

set

exchange

rate

on

a

specified

date.

These

contracts

help

to

manage

the

overall

exposure

to

the

currencies

in

which

some

of

the

investments

held

by

the

Funds

are

denominated

and

in

some

cases,

may

be

used

to

obtain

exposure

to

a

particular

market.

The

contracts

are

traded

OTC

and

not

on

an

organized

exchange.

The

contract

is

marked-to-market

daily

and

the

change

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

in

the

Statements

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

value

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

Non-deliverable

forward

foreign

currency

exchange

contracts

are

settled

with

the

counterparty

in

cash

without

the

delivery

of

foreign

currency.

The

use

of

forward

foreign

currency

exchange

contracts

involves

the

risk

that

the

value

of

a

forward

foreign

currency

exchange

contract

changes

unfavorably

due

to

movements

in

the

value

of

the

referenced

foreign

currencies,

and

such

value

may

exceed

the

amount(s)

reflected

in

the Statements

of

Assets

and

Liabilities. Cash

amounts

pledged

for

forward

foreign

currency

exchange

contracts

are

considered

restricted

and

are

included

in

cash

pledged

as

collateral

for

OTC

derivatives

in

the

Statements

of

Assets

and

Liabilities.

A

Fund’s

risk

of

loss

from

counterparty

credit

risk

on

OTC

derivatives

is

generally

limited

to

the

aggregate

unrealized

gain

netted

against

any

collateral

held

by

the

Fund.

Options:

The

Funds

may purchase

and

write

call

and

put

options

to

increase

or

decrease

their

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Statements

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Funds

write

a

call

option,

such

option

is

typically

“covered,”

meaning

that

they

hold

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Funds

write

a

put

option,

cash

is

segregated

in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Statements

of

Assets

and

Liabilities.

Swaptions

–

The

Funds

may purchase

and

write

swaptions

primarily

to

preserve

a

return

or

spread

on

a

particular

investment

or

portion

of

the

Funds’

holdings,

as

a

duration

management

technique

or

to

protect

against

an

increase

in

the

price

of

securities

it

anticipates

purchasing

at

a

later

date.

The

purchaser

and

writer

of

a

swaption

is

buying

or

granting

the

right

to

enter

into

a

previously

agreed

upon

interest

rate

or

credit

default

swap

agreement

(interest

rate

risk

and/or

credit

risk)

at

any

time

before

the

expiration

of

the

option.

In

purchasing

and

writing

options,

the

Funds

bear

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

they

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Funds

purchasing

or

selling

a

security

when they

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Funds

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Statements

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

100

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Statements

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Funds’

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Funds’

counterparty

on

the

swap. Each

Fund is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap, each

Fund is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract, each

Fund

agrees

to

receive

from

or

pay

to

the

broker

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

from

(paid

to)

the

counterparty

are

amortized

over

the

term

of

the

contract

and recorded

as

realized

gains

(losses)

in

the

Statements

of

Operations,

including

those

at

termination.

Credit

default

swaps

—

Credit

default

swaps

are

entered

into

to

manage

exposure

to

the

market

or

certain

sectors

of

the

market,

to

reduce

risk

exposure

to

defaults

of

corporate

and/or

sovereign

issuers

or

to

create

exposure

to

corporate

and/or

sovereign

issuers

to

which

a

fund

is

not

otherwise

exposed

(credit

risk).

The

Funds

may

either

buy

or

sell

(write)

credit

default

swaps

on

single-name

issuers

(corporate

or

sovereign),

a

combination

or

basket

of

single-name

issuers

or

traded

indexes.

Credit

default

swaps

are

agreements

in

which

the

protection

buyer

pays

fixed

periodic

payments

to

the

seller

in

consideration

for

a

promise

from

the

protection

seller

to

make

a

specific

payment

should

a

negative

credit

event

take

place

with

respect

to

the

referenced

entity

(e.g.,

bankruptcy,

failure

to

pay,

obligation

acceleration,

repudiation,

moratorium

or

restructuring).

As

a

buyer,

if

an

underlying

credit

event

occurs,

the

Funds

will

either

(i)

receive

from

the

seller

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

security

or

underlying

securities

comprising

the

index,

or

(ii)

receive

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

As

a

seller

(writer),

if

an

underlying

credit

event

occurs,

the

Funds

will

either

pay

the

buyer

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

security

or

underlying

securities

comprising

the

index

or

pay

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

Interest

rate

swaps

—

Interest

rate

swaps

are

entered

into

to

gain

or

reduce

exposure

to

interest

rates

or

to

manage

duration,

the

yield

curve

or

interest

rate

(interest

rate

risk).

Interest

rate

swaps

are

agreements

in

which

one

party

pays

a

stream

of

interest

payments,

either

fixed

or

floating,

in

exchange

for

another

party’s

stream

of

interest

payments,

either

fixed

or

floating,

on

the

same

notional

amount

for

a

specified

period

of

time.

In

more

complex

interest

rate

swaps,

the

notional

principal

amount

may

decline

(or

amortize)

over

time.

Forward

swaps

— The

Funds

may enter

into

forward

interest

rate

swaps

and

forward

total

return

swaps.

In

a

forward

swap,

each

Fund

and

the

counterparty

agree

to

make

periodic

net

payments

beginning

on

a

specified

date

or

a

net

payment

at

termination.

Inflation

swaps

—

Inflation

swaps

are

entered

into

to

gain

or

reduce

exposure

to

inflation

(inflation

risk).

In

an

inflation

swap,

one

party

makes

fixed

interest

payments

on

a

notional

principal

amount

in

exchange

for

another

party’s

variable

payments

based

on

an

inflation

index,

such

as

the

Consumer

Price

Index.

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risks

in

excess

of

the

amounts

recognized

in

the

Statements

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, a

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

Fund

and

a

counterparty

that

governs

certain

OTC

derivatives

and

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

a

default

and/or

termination

event.

Under

an

ISDA

Master

Agreement, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Funds

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Funds

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Funds,

if

any,

is

noted

in

the

Schedules

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Funds.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Funds

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

A

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Funds

from the

counterparties

are

not

fully

collateralized, each

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Funds have

delivered

collateral

to

a

counterparty

and

stand

ready

to

perform

under

the

terms

of

their

agreement

with

such

counterparty, each

Fund bears

the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

Notes

to

Financial

Statements

(continued)

101

Notes

to

Financial

Statements

For

financial

reporting

purposes,

the

Funds

do

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Statements

of

Assets

and

Liabilities.

6.

INVESTMENT

ADVISORY

AGREEMENT

AND

OTHER

TRANSACTIONS

WITH

AFFILIATES 

Investment

Advisory:

The

Trust,

on

behalf

of

the

Funds,

entered

into

an

Investment

Advisory

Agreement

with

the

Manager,

the

Funds’

investment

adviser

and

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

Inc.

(“BlackRock”),

to

provide

investment

advisory

services.

The

Manager

is

responsible

for

the

management

of each

Fund’s

portfolio

and

provides

the

personnel,

facilities,

equipment

and

certain

other

services

necessary

to

the

operations

of each

Fund.

For

such

services,

each

Fund

pays

the

Manager

a

monthly

fee

at

an

annual

rate

equal

to

the

following

percentages

of

the

average

daily

value

of

each

Fund’s

net

assets:

With

respect

to

Income

Fund,

the

Manager

entered

into

separate

sub-advisory

agreements

with

each

of

BlackRock

International

Limited

(“BIL”)

and

BlackRock

(Singapore)

Limited

(“BSL”)

(collectively,

the

“Sub-Advisers”),

each

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

and

BSL

for

services

they

provide

for

that

portion

of

Income

Fund

for

which

BIL

and

BSL,

as

applicable,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by Income

Fund

to

the

Manager.

With

respect

to

Impact

Mortgage,

the

Manager

entered

into

a

sub-advisory

agreement

with

BIL,

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

for

services

it

provides

for

that

portion

of

Impact

Mortgage

for

which

BIL

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

Impact

Mortgage

to

the

Manager.

Service

and

Distribution

Fees:

The

Trust

,

on behalf

of

the

Funds,

entered

into

a

Distribution

Agreement

and

a Distribution and

Service

Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager.

Pursuant

to

the

Distribution

and

Service

Plan

and

in

accordance

with

Rule

12b-1

under

the

1940

Act,

each

Fund

pays

BRIL

ongoing

service

and

distribution

fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

each

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing

and

distribution

services to

the

Funds.

The

ongoing

service

and/or

distribution

fee compensates

BRIL

and

each

broker-dealer

for

providing

shareholder

servicing

and/or

distribution related

services

to

shareholders.

For

the year

ended

September

30,

2022,

the

following

table

shows

the

class

specific

service

and

distribution

fees

borne

directly

by

each

share

class

of

each

Fund:

Administration:

The

Trust,

on

behalf

of

the

Funds,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

each

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Statements

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Statements

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

Investment

Advisory

Fees

Average

Daily

Net

Assets

GNMA

Impact

Mortgage

First

$1

billion

............................................................................................

0.340‌%

0.390‌%

$1

billion

-

$3

billion

........................................................................................

0.320‌

0.370‌

$3

billion

-

$5

billion

........................................................................................

0.310‌

0.350‌

$5

billion

-

$10

billion

.......................................................................................

0.300‌

0.340‌

Greater

than

$10

billion

......................................................................................

0.280‌

0.330‌

Income

Fund

Average

Daily

Net

Assets

Investment

Advisory

Fees

First

$1

billion

..........................................................................................................

0.500‌%

$1

billion

-

$2

billion

......................................................................................................

0.450‌

$2

billion

-

$3

billion

......................................................................................................

0.425‌

Greater

than

$3

billion

....................................................................................................

0.400‌

Share

Class

Service

Fees

Distribution

Fees

Investor

A

.................................................................................................

0.25‌%

—‌

Investor

C

.................................................................................................

0.25‌

0.75‌

%

Class

R

..................................................................................................

0.25‌

0.25‌

Fund

Name

Investor

A

Investor

C

Class

R

Total

GNMA

.............................................................................

$

315,951‌

$

137,520‌

$

—‌

$

453,471‌

Impact

Mortgage

......................................................................

758,894‌

117,768‌

20,260‌

896,922‌

Income

Fund

.........................................................................

490,358‌

279,545‌

—‌

769,903‌

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

0.0425

%

$500

million

-

$1

billion

0.0400

$1

billion

-

$2

billion

0.0375

$2

billion

-

$4

billion

0.0350

$4

billion

-

$13

billion

0.0325

Greater

than

$13

billion

0.0300

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

102

For

the

year

ended

September

30,

2022, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

each

Fund:

Transfer

Agent:

Pursuant

to

written

agreements,

certain

financial

intermediaries,

some

of

which

may

be

affiliates,

provide

the

Funds

with

sub-accounting,

recordkeeping,

sub-transfer

agency

and

other

administrative

services

with

respect

to

servicing

of

underlying

investor

accounts.

For

these

services,

these

entities

receive

an

asset-based

fee

or

an

annual

fee

per

shareholder

account,

which

will

vary

depending

on

share

class

and/or

net

assets.

For

the

year ended September

30,

2022,

the

Funds 

paid

the

following

amounts

to

affiliates

of

BlackRock

in

return

for

these

services,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statements

of

Operations:

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Funds.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the year

ended

September

30,

2022,

each

Fund

reimbursed

the

Manager

the

following

amounts

for

costs

incurred

in

running

the

call

center,

which

are

included

in

transfer

agent

—

class

specific

in

the

Statements

of

Operations:

For

the

year ended

September

30,

2022,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

each

Fund:

Other

Fees:

For

the 

year

ended 

September

30,

2022

,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of

each

Fund’s Investor

A

Shares

as

follows:

For

the year

ended

September

30,

2022,

affiliates

received

CDSCs

as

follows:

Expense

Limitations,

Waivers

and

Reimbursements:

With

respect

to

GNMA

and

Income

Fund

,

the

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees

GNMA

and

Income

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

June

30,

2023.

With

respect

to

Impact

Mortgage,

the

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

i

nvestment

advisory

fees

Impact

M

ortgage

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

through

June

30,

2024.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitations

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver. These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

For

the

year

ended

September

30,

2022,

the

amounts

waived

were

as

follows:

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of GNMA

and

Income

Fund

assets

invested

in

affiliated

equity

and

fixed-income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

June

30,

2023.

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of

Impact

Mortgage's

assets

invested

in

affiliated

equity

and

fixed-income

mutual

funds

and

affiliated

exchange-

traded

funds

that

have

a

contractual

management

fee

through

June

30,

2024. The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Fund

Name

Institutional

Investor

A

Investor

C

Class

K

Class

R

Total

GNMA

.............................................................

$

56,073‌

$

25,275‌

$

2,750‌

$

9,990‌

$

—‌

$

94,088‌

Impact

Mortgage

......................................................

53,404‌

60,709‌

2,355‌

3,521‌

810‌

120,799‌

Income

Fund

.........................................................

393,355‌

39,227‌

5,591‌

68,176‌

—‌

506,349‌

Fund

Name

Institutional

Investor

A

Total

GNMA

.........................................................................................

$

12,781‌

$

2,403‌

$

15,184‌

Impact

Mortgage

..................................................................................

30,213‌

1,721‌

31,934‌

Fund

Name

Institutional

Investor

A

Investor

C

Class

K

Class

R

Total

GNMA

......................................................

$

24,672‌

$

3,945‌

$

909‌

$

180‌

$

—‌

$

29,706‌

Impact

Mortgage

...............................................

1,982‌

38,073‌

2,730‌

68‌

155‌

43,008‌

Income

Fund

..................................................

4,856‌

2,396‌

746‌

—‌

—‌

7,998‌

Fund

Name

Institutional

Investor

A

Investor

C

Class

K

Class

R

Total

GNMA

.............................................................

$

305,963‌

$

146,032‌

$

11,845‌

$

2,847‌

$

—‌

$

466,687‌

Impact

Mortgage

......................................................

409,222‌

511,132‌

17,481‌

2,714‌

10,863‌

951,412‌

Income

Fund

.........................................................

3,212,426‌

174,920‌

27,700‌

41,815‌

—‌

3,456,861‌

Fund

Name

Other

Fees

GNMA

................................................................................................................

$

6,188‌

Impact

Mortgage

.........................................................................................................

1,532‌

Income

Fund

............................................................................................................

8,338‌

Fund

Name

Investor

A

Investor

C

GNMA

.....................................................................................................

$

4,423‌

$

1,170‌

Impact

Mortgage

..............................................................................................

3,307‌

1,736‌

Income

Fund

.................................................................................................

29,897‌

5,231‌

Fund

Name

Amounts

Waived

GNMA

............................................................................................................

$

1,715‌

Impact

Mortgage

.....................................................................................................

6,220‌

Income

Fund

........................................................................................................

81,743‌

Notes

to

Financial

Statements

(continued)

103

Notes

to

Financial

Statements

Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of a

Fund.

These

amount

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

For

the

year

ended

September

30,

2022,

Income

Fund

waived

$164,238

in

investment

advisory

fees

pursuant

to

these

arrangements.

With

respect

to

each

Fund,

the

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

expenses,

excluding

interest

expense,

dividend

expense,

tax

expense,

acquired

fund

fees

and

expenses,

and

certain

other

fund

expenses,

which

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of each

Fund’s

business

(“expense

limitation”).

The

expense

limitations

as

a

percentage

of

average

daily

net

assets are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2023,

unless

approved

by

the

Board,

including

a

majority

of

the Independent

Trustees,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of a

Fund. For

the

year

ended

September

30,

2022,

the

amounts

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations

were

as

follows:

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in administration

fees

waived

by

the

Manager

—

class

specific

and

transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific,

respectively,

in

the

Statements

of

Operations.

For

the year

ended

September

30,

2022,

class

specific

expense

waivers

and/or

reimbursements are

as

follows: 

Interfund

Lending:

In

accordance

with

an

exemptive

order

(the

“Order”)

from

the

U.S.

Securities

and

Exchange

Commission

(“SEC”),

each

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by each

Fund’s

investment

policies

and

restrictions. Each

Fund

is

currently

permitted

to

borrow

and

GNMA

is

permitted

to

lend

under

the

Interfund

Lending

Program.

A

lending

BlackRock

fund

may

lend

in

aggregate

up

to

15%

of

its

net

assets

but

may

not

lend

more

than

5%

of

its

net

assets

to

any

one

borrowing

fund

through

the

Interfund

Lending

Program.

A

borrowing

BlackRock

fund

may

not

borrow

through

the

Interfund

Lending

Program

or

from

any

other

source

more

than

33

1/3%

of

its

total

assets

(or

any

lower

threshold

provided

for

by

the fund’s

investment

restrictions).

If

a

borrowing

BlackRock

fund’s

total

outstanding

borrowings

exceed

10%

of

its

total

assets,

each

of

its

outstanding

interfund

loans

will

be

subject

to

collateralization

of

at

least

102%

of

the

outstanding

principal

value

of

the

loan.

All

interfund

loans

are

for

temporary

or

emergency

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

Fund

Name

Institutional

Investor

A

Investor

C

Class

K

Class

R

GNMA

..................................................................

0.42‌%

0.67‌%

1.42‌%

0.37‌%

N/A‌

Impact

Mortgage

...........................................................

0.45‌

0.70‌

1.45‌

0.40‌

0.95‌%

Income

Fund

..............................................................

0.62‌

0.87‌

1.62‌

0.57‌

N/A‌

Fund

Name

Fees

Waived

and/or

Reimbursed

by

the

Manager

GNMA

..................................................................................................................

$

425,432‌

Impact

Mortgage

...........................................................................................................

602,868‌

Income

Fund

..............................................................................................................

14,888‌

Fund

Name/Share

Class

Administration

Fees

Waived

by

the

Manager

-

Class

Specific

Transfer

Agent

Fees

Waived

and/or

Reimbursed

by

the

Manager

-

Class

Specific

GNMA

Institutional

....................................................................................

$

56,073‌

$

167,002‌

Investor

A

.....................................................................................

25,275‌

83,231‌

Investor

C

.....................................................................................

2,715‌

5,089‌

Class

K

......................................................................................

9,990‌

2,847‌

$

94,053‌

$

258,169‌

Impact

Mortgage

Institutional

....................................................................................

53,299‌

271,647‌

Investor

A

.....................................................................................

60,709‌

355,821‌

Investor

C

.....................................................................................

2,355‌

11,466‌

Class

K

......................................................................................

3,487‌

2,662‌

Class

R

......................................................................................

810‌

8,849‌

$

120,660‌

$

650,445‌

Income

Fund

Institutional

....................................................................................

393,355‌

1,609,471‌

Investor

A

.....................................................................................

36,341‌

19,887‌

Investor

C

.....................................................................................

4,919‌

5,629‌

Class

K

......................................................................................

22,036‌

4,066‌

$

456,651‌

$

1,639,053‌

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

104

During

the

year

ended

September

30,

2022,

the

Funds

did

not

participate

in

the

Interfund

Lending

Program.

Trustees

and

Officers: 

Certain

trustees

and/or

officers

of

the Trust are directors and/or

officers

of BlackRock

or

its

affiliates.

The

Funds

reimburse

the

Manager

for

a

portion

of

the

compensation

paid

to

the 

Funds'

Chief

Compliance

Officer,

which

is

included

in

Trustees and

Officer

in

the

Statements

of

Operations. 

Other

Transactions:

The

Funds

may

purchase

securities

from,

or

sell

securities

to,

an

affiliated

fund

provided

the

affiliation

is

due

solely

to

having

a

common

investment

adviser,

common

officers,

or

common trustees.

For

the

year

ended

September

30,

2022,

the

purchase

and

sale

transactions

and

any

net

realized

gains

(losses)

with affiliated

funds

in

compliance

with

Rule

17a-7

under

the

1940

Act

were

as

follows:

7.

PURCHASES

AND

SALES 

For

the year ended

September

30,

2022,

purchases

and

sales

of

investments,

including

paydowns/payups,

mortgage

dollar

rolls and

excluding

short-term

securities,

were

as

follows:

For

the

year ended

September

30,

2022,

purchases

and

sales

related

to

mortgage

dollar

rolls

were

as

follows:

8.

INCOME

TAX

INFORMATION 

It

is

each

Fund’s

policy

to

comply

with

the

requirements

of

the

Internal

Revenue

Code

of

1986,

as

amended,

applicable

to

regulated

investment

companies,

and

to

distribute

substantially

all

of

its

taxable

income

to

its

shareholders.

Therefore,

no

U.S.

federal

income

tax

provision

is

required. 

Each Fund

files

U.S.

federal

and

various

state

and

local

tax

returns.

No

income

tax

returns

are

currently

under

examination.

The

statute

of

limitations

on

each

Fund’s

U.S.

federal

tax

returns

generally

remains

open

for

a

period

of

three

years

after

they

are

filed.

The

statutes

of

limitations

on

each

Fund’s

state

and

local

tax

returns

may

remain

open

for

an

additional

year

depending

upon

the

jurisdiction. 

Management

has

analyzed

tax

laws

and

regulations

and

their

application

to

the Funds

as

of

September

30,

2022,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Funds’

financial

statements.

U.S.

GAAP

requires

that

certain

components

of

net

assets

be

adjusted

to

reflect

permanent

differences

between

financial

and

tax

reporting.

These

reclassifications

have

no

effect

on NAVs

per

share.

As

of

period

end,

the

following

permanent

differences

attributable

to

distributions

paid

in

excess

of

taxable

income

and

non-deductible

expenses

were reclassified

to

the

following

accounts:

Fund

Name

Purchases

Sales

Net

Realized

Gain

(Loss)

Impact

Mortgage

......................................................................

$

—‌

$

140,935‌

$

(14,394‌)

Income

Fund

.........................................................................

158,751,529‌

46,451,126‌

(5,159,685‌)

U.S.

Government

Securities

Other

Securities

Fund

Name

Purchases

Sales

Purchases

Sales

GNMA

.............................................................

$

—‌

$

—‌

$

9,228,233,913‌

$

9,439,131,953‌

Impact

Mortgage

......................................................

46,351,261‌

399,880,921‌

7,032,005,520‌

6,872,173,778‌

Income

Fund

.........................................................

1,021,795,713‌

618,361,167‌

2,077,133,080‌

3,164,455,640‌

Fund

Name

Purchases

Sales

GNMA

.............................................................................................

$

3,709,141,881‌

$

3,714,427,341‌

Impact

Mortgage

......................................................................................

2,397,704,309‌

2,398,181,116‌

Fund

Name

Paid-In

Capital

Accumulated

Earnings

(Loss)

GNMA

..................................................................................

$

(4,163

)

$

4,163

Impact

Mortgage

...........................................................................

(407,418

)

407,418

Income

Fund

..............................................................................

(195

)

195

—

Notes

to

Financial

Statements

(continued)

105

Notes

to

Financial

Statements

The

tax

character

of

distributions

paid

was

as

follows: 

As

of

September

30,

2022,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:  

(a)

Amounts

available

to

offset

future

realized

capital

gains.

(b)

The

differences

between

book-basis

and

tax-basis

net

unrealized

gains

(losses)

were

attributable

primarily

to

the

tax

deferral

of

losses

on

wash

sales

and

straddles,

the

realization

for

tax

purposes

of

unrealized

gains

(losses)

on

certain

futures,

options,

and

foreign

currency

contracts,

the

timing

and

recognition

of

partnership

income,

dividends

deemed

recognized

for

tax

purposes,

the

accounting

for

swap

agreements,

the

accrual

of

income

on

securities

in

default,

the

classification

of

investments

and

amortization

methods

for

premiums

and

discounts

on

fixed

income

securities.

(c)

The

fund

has

elected

to

defer

certain

qualified

late-year

losses

and

recognize

such

losses

in

the

next

taxable

year.

As

of

September

30,

2022, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

The

Trust,

on

behalf

of

the

Funds,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”),

is

a

party

to

a

364-day,

$2.50

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Funds

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Funds,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

Overnight

Bank

Funding

Rate

(“OBFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum

or

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed

or

(c)

the

sum

of

(x)

Daily

Simple

Secured

Overnight

Financing

Rate

(“SOFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.10%

and

(y) 0.80%

per

annum.

The

agreement

expires

in

April

2023

unless

extended

or

renewed.

These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the

year ended

September

30,

2022,

the

Funds

did

not

borrow

under

the

credit

agreement.

10.

 PRINCIPAL

RISKS 

In

the

normal

course

of

business, the

Funds

invest

in

securities

or

other

instruments

and

may

enter

into

certain

transactions,

and

such

activities

subject

each

Fund

to

various

risks,

including

among

others,

fluctuations

in

the

market

(market

risk)

or

failure

of

an

issuer

to

meet

all

of

its

obligations.

The

value

of

securities

or

other

instruments

may

also

be

affected

by

various

factors,

including,

without

limitation:

(i)

the

general

economy;

(ii)

the

overall

market

as

well

as

local,

regional

or

global

political

and/or

social

instability;

(iii)

regulation,

taxation

or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

and

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Funds

and their

investments.

Each

Fund’s

prospectus

provides

details

of

the

risks

to

which

each

Fund

is

subject. 

Fund

Name

Year

Ended

09/30/22

Year

Ended

09/30/21

GNMA

Ordinary

income

...........................................................................................

$

9,379,984

$

12,027,700

Impact

Mortgage

Ordinary

income

...........................................................................................

$

9,634,299

$

11,179,561

Return

of

capital

...........................................................................................

602,772

—

$

10,237,071

$

11,179,561

Income

Fund

Ordinary

income

...........................................................................................

$

142,705,246

$

90,834,501

Long-term

capital

gains

......................................................................................

8,780,966

—

$

151,486,212

$

90,834,501

Fund

Name

Non-Expiring

Capital

Loss

Carryforwards

(a)

Net

Unrealized

Gains

(Losses)

(b)

Qualified

Late-year

Losses

(c)

Total

GNMA

...................................................................

$

(98,890,446

)

$

(55,878,756

)

$

—

$

(154,769,202

)

Impact

Mortgage

............................................................

(76,785,156

)

(50,423,790

)

(1,163,408

)

(128,372,354

)

Income

Fund

...............................................................

(299,356,860

)

(188,115,581

)

(14,850,848

)

(502,323,289

)

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

GNMA

.........................................................

$

642,506,553‌

$

8,037,561‌

$

(63,742,193‌)

$

(55,704,632‌)

Impact

Mortgage

..................................................

1,007,326,953‌

23,779,785‌

(73,620,103‌)

(49,840,318‌)

Income

Fund

....................................................

1,899,656,084‌

37,340,430‌

(224,139,794‌)

(186,799,364‌)

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

106

Market

Risk

:

Each

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

each

Fund

to

reinvest

in

lower

yielding

securities. Each

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

each

Fund’s

portfolio

will

decline

if

each

Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

each

Fund

portfolio’s

current

earnings

rate.

An

outbreak

of

respiratory

disease

caused

by

a

novel

coronavirus

has

developed

into

a

global

pandemic

and

has

resulted

in

closing

borders,

quarantines,

disruptions

to

supply

chains

and

customer

activity,

as

well

as

general

concern

and

uncertainty.

The

impact

of

this

pandemic,

and

other

global

health

crises

that

may

arise

in

the

future,

could

affect

the

economies

of

many

nations,

individual

companies

and

the

market

in

general

in

ways

that

cannot

necessarily

be

foreseen

at

the

present

time.

This

pandemic

may

result

in

substantial

market

volatility

and

may

adversely

impact

the

prices

and

liquidity

of

a

fund's

investments.

Although

vaccines

have

been

developed

and

approved

for

use

by

various

governments,

the duration

of

this

pandemic

and

its

effects

cannot

be

determined

with

certainty.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. A

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that a

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. A

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

each

Fund’s

NAV

to

experience

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of a

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which a

Fund

invests. 

The

price a

Fund

could

receive

upon

the

sale

of

any

particular

portfolio

investment

may

differ

from a

Fund’s

valuation

of

the

investment,

particularly

for

securities

that

trade

in

thin

or

volatile

markets

or

that

are

valued

using

a

fair

valuation

technique

or

a

price

provided

by

an

independent

pricing

service.

Changes

to

significant

unobservable

inputs

and

assumptions

(i.e.,

publicly

traded

company

multiples,

growth

rate,

time

to

exit)

due

to

the

lack

of

observable

inputs

may

significantly

impact

the

resulting

fair

value

and

therefore a

Fund’s

results

of

operations.

As

a

result,

the

price

received

upon

the

sale

of

an

investment

may

be

less

than

the

value

ascribed

by a

Fund,

and a

Fund

could

realize

a

greater

than

expected

loss

or

lesser

than

expected

gain

upon

the

sale

of

the

investment.

A

Fund’s

ability

to

value

its

investments

may

also

be

impacted

by

technological

issues

and/or

errors

by

pricing

services

or

other

third-party

service

providers. 

Counterparty

Credit

Risk:

The

Funds

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

including

making

timely

interest

and/or

principal

payments

or

otherwise

honoring

its

obligations.

The

Funds

manage

counterparty

credit

risk

by

entering

into

transactions

only

with

counterparties

that

the

Manager

believes

have

the

financial

resources

to

honor

their

obligations

and

by

monitoring

the

financial

stability

of

those

counterparties.

Financial

assets,

which

potentially

expose

the

Funds

to

market,

issuer

and

counterparty

credit

risks,

consist

principally

of

financial

instruments

and

receivables

due

from

counterparties.

The

extent

of

the

Funds’

exposure

to

market,

issuer

and

counterparty

credit

risks

with

respect

to

these

financial

assets

is

approximately

their

value

recorded

in

the

Statements

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Funds. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

For

OTC

options

purchased,

each

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Funds

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Funds

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Funds,

and

not

the

counterparty,

to

perform.

The

Funds

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

each

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

options

purchased

and

exchange-traded

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Funds

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, a

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

cleared

swaps

with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Funds. 

Concentration

Risk:

 A

diversified

portfolio,

where

this

is appropriate

and

consistent

with

a

fund’s

objectives,

minimizes

the

risk

that

a

price

change

of

a

particular

investment

will

have

a

material

impact

on

the

NAV

of

a

fund.

The

investment

concentrations

within

each Fund’s

portfolio

are

disclosed

in

its Schedule

of

Investments.

Certain

Funds

invest

a

significant

portion

of their

assets

in

high

yield

securities.

High

yield

securities

that

are

rated

below

investment-grade

(commonly

referred

to

as

“junk

bonds”)

or

are

unrated

may

be

deemed

speculative,

involve

greater

levels

of

risk

than

higher-rated

securities

of

similar

maturity

and

are

more

likely

to

default.

High

yield

securities

may

be

issued

by

less

creditworthy

issuers,

and

issuers

of

high

yield

securities

may

be

unable

to

meet

their

interest

or

principal

payment

obligations.

High

yield

securities

are

subject

to

extreme

price

fluctuations,

may

be

less

liquid

than

higher

rated

fixed-income

securities,

even

under

normal

economic

conditions,

and

frequently

have

redemption

features.

Certain Funds

invest

a

significant

portion

of

their

assets

in fixed-income securities and/or use

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Funds

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the

recent

period

of

historically

low

interest rates. The

Federal

Reserve

has

recently

begun

to

raise

the

federal

funds

rate

as

part

of

its

efforts

to

address

inflation.

There

is

a

risk

that

interest

rates

will

continue

to

rise,

which

will

likely

drive

down

the

prices

of

bonds

and

other

fixed-income

securities,

and

could

negatively

impact certain

Funds’

performance.

Notes

to

Financial

Statements

(continued)

107

Notes

to

Financial

Statements

Certain

Funds

invest

a

significant

portion

of their

assets

in

securities

backed

by

commercial

or

residential

mortgage

loans

or

in

issuers

that

hold

mortgage

and

other

asset-

backed

securities.

When

a

Fund

concentrates

its

investments

in

this

manner,

it

assumes

a

greater

risk

of

prepayment

or

payment

extension

by

securities

issuers.

Changes

in

economic

conditions,

including

delinquencies

and/or

defaults

on

assets

underlying

these

securities,

can

affect

the

value,

income

and/or

liquidity

of

such

positions.

Investment

percentages

in

these

securities

are

presented

in

the

Schedules

of

Investments.

Significant

Shareholder

Redemption

Risk:

Certain

shareholders

may

own

or

manage

a

substantial

amount

of

fund

shares

and/or

hold

their

fund

investments

for

a

limited

period

of

time.

Large

redemptions

of

fund

shares

by

these

shareholders

may

force

a

fund

to

sell

portfolio

securities,

which

may

negatively

impact

the

fund’s

NAV,

increase

the

fund’s

brokerage

costs,

and/or

accelerate

the

realization

of

taxable

income/gains

and

cause

the

fund

to

make

additional

taxable

distributions

to

shareholders.

LIBOR

Transition

Risk:

The

United

Kingdom’s

Financial

Conduct

Authority

announced

a phase

out of

the

LIBOR.

Although

many

LIBOR

rates

ceased to

be

published

or

no

longer

are representative

of

the

underlying

market

they

seek

to

measure

after

December

31,

2021,

a

selection

of

widely

used

USD

LIBOR

rates

will

continue

to

be

published

through

June

2023

in

order

to

assist

with

the

transition.

The

Funds

may

be

exposed

to

financial

instruments

tied

to

LIBOR

to

determine

payment

obligations,

financing

terms,

hedging

strategies

or

investment

value.

The

transition

process

away

from

LIBOR

might

lead

to

increased

volatility

and

illiquidity

in

markets

for,

and

reduce

the

effectiveness

of

new

hedges

placed

against

instruments

whose

terms

currently

include

LIBOR.

The

ultimate

effect

of

the

LIBOR

transition

process

on

the

Funds

is

uncertain. 

11.

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

d

Year

Ended

09/30/22

Year

Ended

09/30/21

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

GNMA

Institutional

Shares

sold

.............................................

9,218,277‌

$

81,732,822‌

17,597,000‌

$

166,395,898‌

Shares

issued

in

reinvestment

of

distributions

........................

587,876‌

5,088,814‌

710,416‌

6,709,784‌

Shares

redeemed

.........................................

(22,646,547‌)

(200,258,139‌)

(16,925,932‌)

(159,655,233‌)

(12,840,394‌)

$

(113,436,503‌)

1,381,484‌

$

13,450,449‌

Service

(a)

Shares

sold

.............................................

—‌

$

—‌

40,001‌

$

379,504‌

Shares

issued

in

reinvestment

of

distributions

........................

—‌

—‌

4,966‌

46,955‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

—‌

—‌

(484,343‌)

(4,548,368‌)

—‌

$

—‌

(439,376‌)

$

(4,121,909‌)

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

798,490‌

$

7,138,866‌

4,840,842‌

$

45,929,241‌

Shares

issued

in

reinvestment

of

distributions

........................

246,613‌

2,135,768‌

282,583‌

2,681,353‌

Shares

redeemed

.........................................

(4,689,942‌)

(41,152,448‌)

(5,869,030‌)

(55,593,851‌)

(3,644,839‌)

$

(31,877,814‌)

(745,605‌)

$

(6,983,257‌)

Investor

C

Shares

sold

.............................................

84,897‌

$

761,994‌

765,088‌

$

7,243,092‌

Shares

issued

in

reinvestment

of

distributions

........................

16,416‌

140,423‌

30,698‌

290,549‌

Shares

redeemed

.........................................

(826,675‌)

(7,315,083‌)

(2,124,112‌)

(20,042,199‌)

(725,362‌)

$

(6,412,666‌)

(1,328,326‌)

$

(12,508,558‌)

Class

K

Shares

sold

.............................................

4,064,896‌

$

36,918,202‌

677,934‌

$

6,382,442‌

Shares

issued

in

reinvestment

of

distributions

........................

133,512‌

1,134,944‌

105,302‌

993,252‌

Shares

redeemed

.........................................

(698,630‌)

(6,140,723‌)

(4,628,107‌)

(43,628,356‌)

3,499,778‌

$

31,912,423‌

(3,844,871‌)

$

(36,252,662‌)

(13,710,817‌)

$

(119,814,560‌)

(4,976,694‌)

$

(46,415,937‌)

Impact

Mortgage

Institutional

Shares

sold

.............................................

22,949,288‌

$

228,645,758‌

13,738,282‌

$

150,672,265‌

Shares

issued

in

reinvestment

of

distributions

........................

435,769‌

4,341,443‌

468,348‌

5,116,557‌

Shares

redeemed

.........................................

(28,467,067‌)

(283,556,816‌)

(23,932,381‌)

(261,258,422‌)

(5,082,010‌)

$

(50,569,615‌)

(9,725,751‌)

$

(105,469,600‌)

Service

(a)

Shares

sold

.............................................

—‌

$

—‌

2,622‌

$

28,469‌

Shares

issued

in

reinvestment

of

distributions

........................

—‌

—‌

323‌

3,551‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

—‌

—‌

(

103,180‌

)

(

1,137,606‌

)

—‌

$

—‌

(

100,235‌

)

$

(

1,105,586‌

)

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

108

(a)

On

July

6,

2021,

the

Fund’s

issued

and

outstanding

Service

Shares

converted

into

Investor

A

Shares.

12.

SUBSEQUENT

EVENTS 

Management

has

evaluated

the

impact

of

all

subsequent

events

on

the

Funds

through

the

date

the

financial

statements

were

issued

and

has

determined

that

there

were

no

subsequent

events

requiring

adjustment

or

additional

disclosure

in

the

financial

statements.

d

Year

Ended

09/30/22

Year

Ended

09/30/21

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

2,960,074‌

$

30,363,913‌

5,305,826‌

$

58,316,134‌

Shares

issued

in

reinvestment

of

distributions

........................

408,876‌

4,070,686‌

388,019‌

4,246,875‌

Shares

redeemed

.........................................

(6,880,569‌)

(69,966,546‌)

(11,481,187‌)

(125,757,732‌)

(3,511,619‌)

$

(35,531,947‌)

(5,787,342‌)

$

(63,194,723‌)

Investor

C

Shares

sold

.............................................

354,130‌

$

3,716,160‌

639,077‌

$

7,022,572‌

Shares

issued

in

reinvestment

of

distributions

........................

9,647‌

94,437‌

10,013‌

109,578‌

Shares

redeemed

.........................................

(708,324‌)

(7,267,391‌)

(1,664,928‌)

(18,248,883‌)

(344,547‌)

$

(3,456,794‌)

(1,015,838‌)

$

(11,116,733‌)

Class

K

Shares

sold

.............................................

1,104,802‌

$

11,094,818‌

602,367‌

$

6,572,718‌

Shares

issued

in

reinvestment

of

distributions

........................

34,886‌

345,155‌

24,851‌

271,311‌

Shares

redeemed

.........................................

(773,566‌)

(7,780,417‌)

(636,845‌)

(6,960,109‌)

366,122‌

$

3,659,556‌

(9,627‌)

$

(116,080‌)

Class

R

Shares

sold

.............................................

323,593‌

$

3,271,112‌

135,975‌

$

1,487,159‌

Shares

issued

in

reinvestment

of

distributions

........................

5,541‌

54,916‌

4,338‌

47,453‌

Shares

redeemed

.........................................

(347,720‌)

(3,503,683‌)

(197,045‌)

(2,168,224‌)

(18,586‌)

$

(177,655‌)

(56,732‌)

$

(633,612‌)

(8,590,640‌)

$

(86,076,455‌)

(16,695,525‌)

$

(181,636,334‌)

Income

Fund

Institutional

Shares

sold

.............................................

75,756,064‌

$

724,606,917‌

177,283,497‌

$

1,871,718,030‌

Shares

issued

in

reinvestment

of

distributions

........................

11,321,323‌

109,321,510‌

6,094,766‌

64,281,239‌

Shares

redeemed

.........................................

(176,641,183‌)

(1,682,014,980‌)

(59,774,286‌)

(630,929,091‌)

(89,563,796‌)

$

(848,086,553‌)

123,603,977‌

$

1,305,070,178‌

Investor

A

Shares

sold

and

automatic

conversion

of

shares

.......................

5,320,885‌

$

51,130,628‌

12,206,813‌

$

128,976,885‌

Shares

issued

in

reinvestment

of

distributions

........................

1,083,738‌

10,415,086‌

570,018‌

6,009,637‌

Shares

redeemed

.........................................

(9,425,003‌)

(90,021,852‌)

(4,681,731‌)

(49,354,869‌)

(3,020,380‌)

$

(28,476,138‌)

8,095,100‌

$

85,631,653‌

Investor

C

Shares

sold

.............................................

258,364‌

$

2,479,983‌

1,136,913‌

$

12,023,586‌

Shares

issued

in

reinvestment

of

distributions

........................

136,755‌

1,323,276‌

78,940‌

836,736‌

Shares

redeemed

and

automatic

conversion

of

shares

...................

(1,371,612‌)

(13,063,958‌)

(838,572‌)

(8,858,075‌)

(976,493‌)

$

(9,260,699‌)

377,281‌

$

4,002,247‌

Class

K

Shares

sold

.............................................

9,968,073‌

$

95,082,729‌

29,160,407‌

$

305,863,192‌

Shares

issued

in

reinvestment

of

distributions

........................

2,114,275‌

20,333,846‌

1,021,889‌

10,778,113‌

Shares

redeemed

.........................................

(22,720,042‌)

(208,787,875‌)

(5,939,577‌)

(62,572,479‌)

(10,637,694‌)

$

(93,371,300‌)

24,242,719‌

$

254,068,826‌

(104,198,363‌)

$

(979,194,690‌)

156,319,077‌

$

1,648,772,904‌

Report

of

Independent

Registered

Public

Accounting

Firm

109

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Shareholders

of

BlackRock

GNMA

Portfolio,

BlackRock

Impact

Mortgage

Fund

(formerly

BlackRock

U.S.

Government

Bond

Portfolio)

and

BlackRock

Income

Fund and

the

Board

of

Trustees of

BlackRock

Funds

V:

Opinion

on

the

Financial

Statements

and

Financial

Highlights

We

have

audited

the

accompanying

statements

of

assets

and

liabilities

of

BlackRock

GNMA

Portfolio,

BlackRock

Impact

Mortgage

Fund

(formerly

BlackRock

U.S.

Government

Bond

Portfolio)

and

BlackRock

Income

Fund

of

BlackRock

Funds

V

(the

“Funds”),

including

the

schedules

of

investments,

as

of

September

30,

2022,

the

related

statements

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

and

the

related

notes.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Funds

as

of

September

30,

2022,

and

the

results

of

their

operations

for

the

year

then

ended,

the

changes

in

their

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

and

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Funds

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB. 

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Funds

are

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

their

internal

control

over

financial

reporting.

As

part

of

our

audits

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Funds’

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights.

Our

procedures

included

confirmation

of

securities

owned

as

of

September

30,

2022,

by

correspondence

with custodians

or

counterparties; when

replies

were

not

received,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

Deloitte

&

Touche

LLP

Boston,

Massachusetts

November

22,

2022

We

have

served

as

the

auditor

of

one

or

more

BlackRock

investment

companies

since

1992.

Important

Tax

Information

(unaudited)

2022

BlackRock

Annual

Report

to

Shareholders

110

The

following

amounts,

or maximum

amounts

allowable

by

law, are

hereby

designated

as

qualified

dividend

income

for

individuals

for

the

fiscal

year

ended

September

30,

2022:

The

Fund

hereby

designates

the

following

amount,

or

maximum

amount

allowable

by

law,

as

capital

gain

dividends,

subject

to

a

long-term

capital

gains

tax

rate

as

noted

below,

for

the

fiscal

year

ended

September

30,

2022:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable

by

law,

of

distributions

from

direct

federal

obligation

interest

for

the

fiscal

year

ended

September

30,

2022:

The

law

varies

in

each

state

as

to

whether

and

what

percent

of

ordinary

income

dividends

attributable

to

federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

check

with

their

tax

advisers

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

tax.

The

following

percentages,

or

maximum

percentages

allowable

by

law,

of

ordinary

income

distributions

paid

during

the

fiscal

year

ended

September

30,

2022

qualified

for

the

dividends-received

deduction

for

corporate

shareholders:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable by

law,

as

interest

income

eligible

to

be

treated

as

a

Section

163(j)

interest

dividend

for

the

fiscal

year

ended

September

30,

2022:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable

by

law,

as

interest-related

dividends

and

qualified

short-term

capital

gains eligible

for

exemption

from

U.S.

withholding

tax

for

nonresident

aliens

and

foreign

corporations

for

the

fiscal

year

ended

September

30,

2022:

Fund

Name

Qualified

Dividend

Income

Income

Fund

......................................................................................................

$

8,388,350

Fund

Name

20%

Rate

Long-Term

Capital

Gain

Dividends

Income

Fund

......................................................................................................

$

8,780,966

Fund

Name

Federal

Obligation

Interest

GNMA

..........................................................................................................

$

89,456

Impact

Mortgage

...................................................................................................

3,380,002

Income

Fund

......................................................................................................

2,785,617

Fund

Name

Dividends-Received

Deduction

Income

Fund

........................................................................................................

2.04

%

Fund

Name

Interest

Dividends

GNMA

..........................................................................................................

$

9,385,331

Impact

Mortgage

...................................................................................................

9,634,299

Income

Fund

......................................................................................................

87,527,547

Fund

Name

Interest-Related

Dividends

Qualified

Short-Term

Capital

Gain

GNMA

.......................................................................................

$

9,385,331

$

—

Impact

Mortgage

................................................................................

8,942,087

—

Income

Fund

...................................................................................

64,514,786

30,123,764

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

111

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

The

Board

of

Trustees

(the

“Board,”

the

members

of

which

are

referred

to

as

“Board

Members”)

of

BlackRock

Funds

V

(the

“Trust”)

met

on

April

14,

2022

(the

“April

Meeting”)

and

May

19-20,

2022

(the

“May

Meeting”)

to

consider

the

approval

to

continue

the

investment

advisory

agreement

(the

“Advisory

Agreement”)

between

the

Trust,

on

behalf

of

BlackRock

Income

Fund

(the

“Income

Fund”),

BlackRock

GNMA

Portfolio

(the

“GNMA

Portfolio”)

and

BlackRock

Impact

Mortgage

Fund

(the

“Impact

Mortgage

Fund”

and

collectively

with

the

Income

Fund

and

the

GNMA

Portfolio,

the

“Funds”

and

each,

a

“Fund”),

and

BlackRock

Advisors,

LLC

(the

“Manager”),

each

Fund’s

investment

advisor.

The

Board

also

considered

the

approval

to

continue

the

sub-advisory

agreements

(the

“Sub-Advisory

Agreements”)

between

(1)

the

Manager

and

BlackRock

International

Limited

(“BIL”),

with

respect

to

the

Income

Fund

and

the

Impact

Mortgage

Fund

and

(2)

the

Manger

and

BlackRock

(Singapore)

Limited

(“BRS”

and

together

with

BIL,

the

“Sub-Advisors”),

with

respect

to

the

Income

Fund.

The

Manager

and

the

Sub-Advisors

are

referred

to

herein

as

“BlackRock.”

The

Advisory

Agreement

and

the

Sub-Advisory

Agreements

are

referred

to

herein

as

the

“Agreements.”

The

Approval

Process

Consistent

with

the

requirements

of

the

Investment

Company

Act

of

1940

(the

“1940

Act”),

the

Board

considers

the

approval

of

the

continuation

of

the

Agreements

for

each

Fund

on

an

annual

basis.

The

Board

members

who

are

not

“interested

persons”

of

the

Trust,

as

defined

in

the

1940

Act,

are

considered

independent

Board

members

(the

“Independent

Board

Members”).

The

Board’s

consideration

entailed

a

year-long

deliberative

process

during

which

the

Board

and

its

committees

assessed

BlackRock’s

various

services

to

each

Fund,

including

through

the

review

of

written

materials

and

oral

presentations,

and

the

review

of

additional

information

provided

in

response

to

requests

from

the

Independent

Board

Members.

The

Board

had

four

quarterly

meetings

per

year,

each

typically

extending

for

two

days,

as

well

as

additional

ad

hoc

meetings

and

executive

sessions

throughout

the

year,

as

needed.

The

committees

of

the

Board

similarly

met

throughout

the

year.

The

Board

also

had

an

additional

one-day

meeting

to

consider

specific

information

surrounding

the

renewal

of

the

Agreements.

In

particular,

the

Board

assessed,

among

other

things,

the

nature,

extent

and

quality

of

the

services

provided

to

each

Fund

by

BlackRock,

BlackRock’s

personnel

and

affiliates,

including

(as

applicable):

investment

management

services;

accounting

oversight;

administrative

and

shareholder

services;

oversight

of

each

Fund’s

service

providers;

risk

management

and

oversight;

and

legal,

regulatory

and

compliance

services.

Throughout

the

year,

including

during

the

contract

renewal

process,

the

Independent

Board

Members

were

advised

by

independent

legal

counsel,

and

met

with

independent

legal

counsel

in

various

executive

sessions

outside

of

the

presence

of

BlackRock’s

management.

During

the

year,

the

Board,

acting

directly

and

through

its

committees,

considered

information

that

was

relevant

to

its

annual

consideration

of

the

renewal

of

the

Agreements,

including

the

services

and

support

provided

by

BlackRock

to

each

Fund

and

its

shareholders.

BlackRock

also

furnished

additional

information

to

the

Board

in

response

to

specific

questions

from

the

Board.

Among

the

matters

the

Board

considered

were:

(a)

investment

performance

for

one-year,

three-year,

five-year,

and/or

since

inception

periods,

as

applicable,

against

peer

funds,

relevant

benchmarks,

and

other

performance

metrics,

as

applicable,

as

well

as

BlackRock

senior

management’s

and

portfolio

managers’

analyses

of

the

reasons

for

any

outperformance

or

underperformance

relative

to

its

peers,

benchmarks,

and

other

performance

metrics,

as

applicable;

(b)

fees,

including

advisory,

administration,

if

applicable,

and

other

amounts

paid

to

BlackRock

and

its

affiliates

by

each

Fund

for

services;

(c)

Fund

operating

expenses

and

how

BlackRock

allocates

expenses

to

each

Fund;

(d)

the

resources

devoted

to,

risk

oversight

of,

and

compliance

reports

relating

to,

implementation

of

each

Fund’s

investment

objective,

policies

and

restrictions,

and

meeting

regulatory

requirements;

(e)

BlackRock’s

and

each

Fund’s

adherence

to

applicable

compliance

policies

and

procedures;

(f)

the

nature,

character

and

scope

of

non-investment

management

services

provided

by

BlackRock

and

its

affiliates

and

the

estimated

cost

of

such

services,

as

applicable;

(g)

BlackRock’s

and

other

service

providers’

internal

controls

and

risk

and

compliance

oversight

mechanisms;

(h)

BlackRock’s

implementation

of

the

proxy

voting

policies

approved

by

the

Board;

(i)

execution

quality

of

portfolio

transactions;

(j)

BlackRock’s

implementation

of

each

Fund’s

valuation

and

liquidity

procedures;

(k)

an

analysis

of

management

fees

paid

to

BlackRock

for

products

with

similar

investment

mandates

across

the

open-end

fund,

exchange-traded

fund

(“ETF”),

closed-end

fund,

sub-advised

mutual

fund,

separately

managed

account,

collective

investment

trust,

and

institutional

separate

account

product

channels,

as

applicable,

and

the

similarities

and

differences

between

these

products

and

the

services

provided

as

compared

to

each

Fund;

(l)

BlackRock’s

compensation

methodology

for

its

investment

professionals

and

the

incentives

and

accountability

it

creates,

along

with

investment

professionals’

investments

in

the

fund(s)

they

manage;

and

(m)

periodic

updates

on

BlackRock’s

business.

Prior

to

and

in

preparation

for

the

April

Meeting,

the

Board

received

and

reviewed

materials

specifically

relating

to

the

renewal

of

the

Agreements.

The

Independent

Board

Members

continuously

engaged

in

a

process

with

their

independent

legal

counsel

and

BlackRock

to

review

the

nature

and

scope

of

the

information

provided

to

the

Board

to

better

assist

its

deliberations.

The

materials

provided

in

connection

with

the

April

Meeting

included,

among

other

things:

(a)

information

independently

compiled

and

prepared

by

Broadridge

Financial

Solutions,

Inc.

(“Broadridge”),

based

on

either

a

Lipper

classification

or

Morningstar

category,

regarding

each

Fund’s

fees

and

expenses

as

compared

with

a

peer

group

of

funds

as

determined

by

Broadridge

(“Expense

Peers”)

and

the

investment

performance

of

each

Fund

as

compared

with

a

peer

group

of

funds

(“Performance

Peers”);

(b)

information

on

the

composition

of

the

Expense

Peers

and

Performance

Peers

and

a

description

of

Broadridge’s

methodology;

(c)

information

on

the

estimated

profits

realized

by

BlackRock

and

its

affiliates

pursuant

to

the

Agreements

and

a

discussion

of

fall-out

benefits

to

BlackRock

and

its

affiliates;

(d)

a

general

analysis

provided

by

BlackRock

concerning

investment

management

fees

received

in

connection

with

other

types

of

investment

products,

such

as

institutional

accounts,

sub-advised

mutual

funds,

ETFs,

closed-end

funds,

open-end

funds,

and

separately

managed

accounts,

under

similar

investment

mandates,

as

well

as

the

performance

of

such

other

products,

as

applicable;

(e)

a

review

of

non-management

fees;

(f)

the

existence,

impact

and

sharing

of

potential

economies

of

scale,

if

any,

with

each

Fund;

(g)

a

summary

of

aggregate

amounts

paid

by

each

Fund

to

BlackRock;

(h)

sales

and

redemption

data

regarding

each

Fund’s

shares;

and

(i)

various

additional

information

requested

by

the

Board

as

appropriate

regarding

BlackRock’s

and

each

Fund’s

operations.

At

the

April

Meeting,

the

Board

reviewed

materials

relating

to

its

consideration

of

the

Agreements

and

the

Independent

Board

Members

presented

BlackRock

with

questions

and

requests

for

additional

information.

BlackRock

responded

to

these

questions

and

requests

with

additional

written

information

in

advance

of

the

May

Meeting.

At

the

May

Meeting,

the

Board

concluded

its

assessment

of,

among

other

things:

(a) the

nature,

extent

and

quality

of

the

services

provided

by

BlackRock;

(b) the

investment

performance

of

each

Fund

as

compared

to

its

Performance

Peers

and

to

other

metrics,

as

applicable;

(c) the

advisory

fee

and

the

estimated

cost

of

the

services

and

estimated

profits

realized

by

BlackRock

and

its

affiliates

from

their

relationship

with

each

Fund;

(d) each

Fund’s

fees

and

expenses

compared

to

its

Expense

Peers;

(e)

the

existence

and

sharing

of

potential

economies

of

scale;

(f)

any

fall-out

benefits

to

BlackRock

and

its

affiliates

as

a

result

of

BlackRock’s

relationship

with

each

Fund;

and

(g) other

factors

deemed

relevant

by

the

Board

Members.

The

Board

also

considered

other

matters

it

deemed

important

to

the

approval

process,

such

as

other

payments

made

to

BlackRock

or

its

affiliates

relating

to

securities

lending

and

cash

management,

and

BlackRock’s

services

related

to

the

valuation

and

pricing

of

Fund

portfolio

holdings.

The

Board

noted

the

willingness

of

BlackRock’s

personnel

to

engage

in

open,

candid

discussions

with

the

Board.

The

Board

Members

evaluated

the

information

available

to

it

on

a

fund-by-fund

basis.

The

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

112

following

paragraphs

provide

more

information

about

some

of

the

primary

factors

that

were

relevant

to

the

Board’s

decision.

The

Board

Members

did

not

identify

any

particular

information,

or

any

single

factor

as

determinative,

and

each

Board

Member

may

have

attributed

different

weights

to

the

various

items

and

factors

considered.

A.

Nature,

Extent

and

Quality

of

the

Services

Provided

by

BlackRock

The

Board,

including

the

Independent

Board

Members,

reviewed

the

nature,

extent

and

quality

of

services

provided

by

BlackRock,

including

the

investment

advisory

services,

and

the

resulting

performance

of

each

Fund.

Throughout

the

year,

the

Board

compared

Fund

performance

to

the

performance

of

a

comparable

group

of

mutual

funds,

relevant

benchmarks,

and

performance

metrics,

as

applicable.

The

Board

met

with

BlackRock’s

senior

management

personnel

responsible

for

investment

activities,

including

the

senior

investment

officers.

The

Board

also

reviewed

the

materials

provided

by

each

Fund’s

portfolio

management

team

discussing

each

Fund’s

performance,

investment

strategies

and

outlook.

The

Board

considered,

among

other

factors,

with

respect

to

BlackRock:

the

number,

education

and

experience

of

investment

personnel

generally

and

each

Fund’s

portfolio

management

team;

research

capabilities;

investments

by

portfolio

managers

in

the

funds

they

manage;

portfolio

trading

capabilities;

use

of

technology;

commitment

to

compliance;

credit

analysis

capabilities;

risk

analysis

and

oversight

capabilities;

and

the

approach

to

training

and

retaining

portfolio

managers

and

other

research,

advisory

and

management

personnel.

The

Board

also

considered

BlackRock’s

overall

risk

management

program,

including

the

continued

efforts

of

BlackRock

and

its

affiliates

to

address

cybersecurity

risks

and

the

role

of

BlackRock’s

Risk

&

Quantitative

Analysis

Group.

The

Board

engaged

in

a

review

of

BlackRock’s

compensation

structure

with

respect

to

each

Fund’s

portfolio

management

team

and

BlackRock’s

ability

to

attract

and

retain

high-quality

talent

and

create

performance

incentives.

In

addition

to

investment

advisory

services,

the

Board

considered

the

nature

and

quality

of

the

administrative

and

other

non-investment

advisory

services

provided

to

each

Fund.

BlackRock

and

its

affiliates

provide

each

Fund

with

certain

administrative,

shareholder

and

other

services

(in

addition

to

any

such

services

provided

to

each

Fund

by

third

parties)

and

officers

and

other

personnel

as

are

necessary

for

the

operations

of

each

Fund.

In

particular,

BlackRock

and

its

affiliates

provide

each

Fund

with

administrative

services

including,

among

others:

(i)

responsibility

for

disclosure

documents,

such

as

the

prospectus,

the

summary

prospectus

(as

applicable),

the

statement

of

additional

information

and

periodic

shareholder

reports;

(ii)

oversight

of

daily

accounting

and

pricing;

(iii)

responsibility

for

periodic

filings

with

regulators;

(iv)

overseeing

and

coordinating

the

activities

of

third-party

service

providers

including,

among

others,

each

Fund’s

custodian,

fund

accountant,

transfer

agent,

and

auditor;

(v)

organizing

Board

meetings

and

preparing

the

materials

for

such

Board

meetings;

(vi)

providing

legal

and

compliance

support;

(vii)

furnishing

analytical

and

other

support

to

assist

the

Board

in

its

consideration

of

strategic

issues

such

as

the

merger,

consolidation

or

repurposing

of

certain

open-end

funds;

and

(viii)

performing

or

managing

administrative

functions

necessary

for

the

operation

of

each

Fund,

such

as

tax

reporting,

expense

management,

fulfilling

regulatory

filing

requirements,

overseeing

each

Fund’s

distribution

partners,

and

shareholder

call

center

and

other

services.

The

Board

reviewed

the

structure

and

duties

of

BlackRock’s

fund

administration,

shareholder

services,

and

legal

and

compliance

departments

and

considered

BlackRock’s

policies

and

procedures

for

assuring

compliance

with

applicable

laws

and

regulations.

The

Board

considered

the

operation

of

BlackRock’s

business

continuity

plans,

including

in

light

of

the

ongoing

COVID-19

pandemic.

B.

The

Investment

Performance

of

each

Fund

and

BlackRock

The

Board,

including

the

Independent

Board

Members,

reviewed

and

considered

the

performance

history

of

each

Fund

throughout

the

year

and

at

the

April

meeting.

In

preparation

for

the

April

Meeting,

the

Board

was

provided

with

reports

independently

prepared

by

Broadridge,

which

included

an

analysis

of

each

Fund’s

performance

as

of

December

31,

2021,

as

compared

to

its

Performance

Peers.

Broadridge

ranks

funds

in

quartiles,

ranging

from

first

to

fourth,

where

first

is

the

most

desirable

quartile

position

and

fourth

is

the

least

desirable.

In

connection

with

its

review,

the

Board

received

and

reviewed

information

regarding

the

investment

performance

of

each

Fund

as

compared

to

its

Performance

Peers.

The

Board

and

its

Performance

Oversight

Committee

regularly

review

and

meet

with

Fund

management

to

discuss

the

performance

of

each

Fund

throughout

the

year.

In

evaluating

performance,

the

Board

focused

particular

attention

on

funds

with

less

favorable

performance

records.

The

Board

also

noted

that

while

it

found

the

data

provided

by

Broadridge

generally

useful,

it

recognized

the

limitations

of

such

data,

including

in

particular,

that

notable

differences

may

exist

between

a

fund

and

its

Performance

Peers

(for

example,

the

investment

objectives

and

strategies).

Further,

the

Board

recognized

that

the

performance

data

reflects

a

snapshot

of

a

period

as

of

a

particular

date

and

that

selecting

a

different

performance

period

could

produce

significantly

different

results.

The

Board

also

acknowledged

that

long-term

performance

could

be

impacted

by

even

one

period

of

significant

outperformance

or

underperformance,

and

that

a

single

investment

theme

could

have

the

ability

to

disproportionately

affect

long-term

performance.

The

Board

noted

that

for

the

one-,

three-

and

five-year

periods

reported,

the

Income

Fund

ranked

in

the

fourth,

second

and

second

quartiles,

respectively,

against

its

Performance

Peers.

The

Board

and

BlackRock

reviewed

the

Income

Fund’s

underperformance

relative

to

its

Performance

Peers

during

the

applicable

period.

The

Board

noted

that

for

the

one-,

three-

and

five-year

periods

reported,

the

GNMA

Portfolio

ranked

in

the

first,

second

and

third

quartiles,

respectively,

against

its

Performance

Peers.

The

Board

and

BlackRock

reviewed

the

GNMA

Portfolio’s

underperformance

relative

to

its

Performance

Peers

during

the

applicable

period.

The

Board

noted

that

for

each

of

the

one-,

three-

and

five-year

periods

reported,

the

Impact

Mortgage

Fund

ranked

in

the

first

quartile

against

its

Performance

Peers.

The

Board

noted

that

effective

September

1,

2022,

the

Impact

Mortgage

Fund

had

undergone

a

change

in

its

investment

strategy,

and

in

connection

therewith,

had

changed

its

name

from

BlackRock

U.S

Government

Bond

Portfolio

to

BlackRock

Impact

Mortgage

Fund.

C.

Consideration

of

the

Advisory/Management

Fees

and

the

Estimated

Cost

of

the

Services

and

Estimated

Profits

Realized

by

BlackRock

and

its

Affiliates

from

their

Relationship

with

each

Fund

The

Board,

including

the

Independent

Board

Members,

reviewed

each

Fund’s

contractual

management

fee

rate

compared

with

those

of

its

Expense

Peers.

The

contractual

management

fee

rate

represents

a

combination

of

the

advisory

fee

and

any

administrative

fees,

before

taking

into

account

any

reimbursements

or

fee

waivers.

The

Board

also

compared

each

Fund’s

total

expense

ratio,

as

well

as

its

actual

management

fee

rate,

to

those

of

its

Expense

Peers.

The

total

expense

ratio

represents

a

fund’s

total

net

operating

expenses,

including

any

12b-1

or

non-12b-1

service

fees.

The

total

expense

ratio

gives

effect

to

any

expense

reimbursements

or

fee

waivers,

and

the

actual

management

fee

rate

gives

effect

to

any

management

fee

reimbursements

or

waivers.

The

Board

considered

the

services

provided

and

the

fees

charged

by

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

(continued)

113

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

BlackRock

and

its

affiliates

to

other

types

of

clients

with

similar

investment

mandates,

as

applicable,

including

institutional

accounts

and

sub-advised

mutual

funds

(including

mutual

funds

sponsored

by

third

parties).

The

Board

received

and

reviewed

statements

relating

to

BlackRock’s

financial

condition.

The

Board

reviewed

BlackRock’s

profitability

methodology

and

was

also

provided

with

an

estimated

profitability

analysis

that

detailed

the

revenues

earned

and

the

expenses

incurred

by

BlackRock

for

services

provided

to

each

Fund.

The

Board

reviewed

BlackRock’s

estimated

profitability

with

respect

to

each

Fund

and

other

funds

the

Board

currently

oversees

for

the

year

ended

December

31,

2021

compared

to

available

aggregate

estimated

profitability

data

provided

for

the

prior

two

years.

The

Board

reviewed

BlackRock’s

estimated

profitability

with

respect

to

certain

other

U.S.

fund

complexes

managed

by

the

Manager

and/or

its

affiliates.

The

Board

reviewed

BlackRock’s

assumptions

and

methodology

of

allocating

expenses

in

the

estimated

profitability

analysis,

noting

the

inherent

limitations

in

allocating

costs

among

various

advisory

products.

The

Board

recognized

that

profitability

may

be

affected

by

numerous

factors

including,

among

other

things,

fee

waivers

and

expense

reimbursements

by

the

Manager,

the

types

of

funds

managed,

precision

of

expense

allocations

and

business

mix.

The

Board

thus

recognized

that

calculating

and

comparing

profitability

at

the

individual

fund

level

is

difficult.

The

Board

noted

that,

in

general,

individual

fund

or

product

line

profitability

of

other

advisors

is

not

publicly

available.

The

Board

reviewed

BlackRock’s

overall

operating

margin,

in

general,

compared

to

that

of

certain

other

publicly

traded

asset

management

firms.

The

Board

considered

the

differences

between

BlackRock

and

these

other

firms,

including

the

contribution

of

technology

at

BlackRock,

BlackRock’s

expense

management,

and

the

relative

product

mix.

The

Board

considered

whether

BlackRock

has

the

financial

resources

necessary

to

attract

and

retain

high

quality

investment

management

personnel

to

perform

its

obligations

under

the

Agreements

and

to

continue

to

provide

the

high

quality

of

services

that

is

expected

by

the

Board.

The

Board

further

considered

factors

including

but

not

limited

to

BlackRock’s

commitment

of

time,

assumption

of

risk,

and

liability

profile

in

servicing

each

Fund,

including

in

contrast

to

what

is

required

of

BlackRock

with

respect

to

other

products

with

similar

investment

mandates

across

the

open-end

fund,

ETF,

closed-end

fund,

sub-advised

mutual

fund,

separately

managed

account,

collective

investment

trust,

and

institutional

separate

account

product

channels,

as

applicable.

The

Board

noted

that

the

Income

Fund’s

contractual

management

fee

rate

ranked

in

the

second

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

each

ranked

in

the

second

quartile,

relative

to

the

Income

Fund’s

Expense

Peers.

The

Board

also

noted

that

the

Income

Fund

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

Income

Fund

increases

above

certain

contractually

specified

levels.

The

Board

noted

that

if

the

size

of

the

Income

Fund

were

to

decrease,

the

Income

Fund

could

lose

the

benefit

of

one

or

more

breakpoints.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

Income

Fund’s

total

expenses

as

a

percentage

of

the

Income

Fund’s

average

daily

net

assets

on

a

class-by-class

basis.

The

Board

noted

that

the

GNMA

Portfolio’s

contractual

management

fee

rate

ranked

in

the

third

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

each

ranked

in

the

second

quartile,

relative

to

the

GNMA

Portfolio’s

Expense

Peers.

The

Board

also

noted

that

the

GNMA

Portfolio

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

GNMA

Portfolio

increases

above

certain

contractually

specified

levels.

The

Board

noted

that

if

the

size

of

the

GNMA

Portfolio

were

to

decrease,

the

GNMA

Portfolio

could

lose

the

benefit

of

one

or

more

breakpoints.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

GNMA

Portfolio’s

total

expenses

as

a

percentage

of

the

GNMA

Portfolio’s

average

daily

net

assets

on

a

class-by-

class

basis.

The

Board

noted

that

the

Impact

Mortgage

Fund’s

contractual

management

fee

rate

ranked

in

the

third

quartile,

and

that

the

actual

management

fee

rate

and

total

expense

ratio

each

ranked

in

the

second

quartile,

relative

to

the

Impact

Mortgage

Fund’s

Expense

Peers.

The

Board

also

noted

that

the

Impact

Mortgage

Fund

has

an

advisory

fee

arrangement

that

includes

breakpoints

that

adjust

the

fee

rate

downward

as

the

size

of

the

Impact

Mortgage

Fund

increases

above

certain

contractually

specified

levels.

The

Board

noted

that

if

the

size

of

the

Impact

Mortgage

Fund

were

to

decrease,

the

Impact

Mortgage

Fund

could

lose

the

benefit

of

one

or

more

breakpoints.

The

Board

further

noted

that

BlackRock

and

the

Board

have

contractually

agreed

to

a

cap

on

the

Impact

Mortgage

Fund’s

total

expenses

as

a

percentage

of

the

Impact

Mortgage

Fund’s

average

daily

net

assets

on

a

class-by-class

basis.

D.

Economies

of

Scale

The

Board,

including

the

Independent

Board

Members,

considered

the

extent

to

which

economies

of

scale

might

be

realized

as

the

assets

of

each

Fund

increase,

including

the

existence

of

fee

waivers

and/or

expense

caps,

as

applicable,

noting

that

any

contractual

fee

waivers

and

contractual

expense

caps

had

been

approved

by

the

Board.

In

its

consideration,

the

Board

further

considered

the

continuation

and/or

implementation

of

fee

waivers

and/or

expense

caps,

as

applicable.

The

Board

also

considered

the

extent

to

which

each

Fund

benefits

from

such

economies

of

scale

in

a

variety

of

ways,

and

whether

there

should

be

changes

in

the

advisory

fee

rate

or

breakpoint

structure

in

order

to

enable

each

Fund

to

more

fully

participate

in

these

economies

of

scale.

The

Board

considered

each

Fund’s

asset

levels

and

whether

the

current

fee

schedule

was

appropriate.

E.

Other

Factors

Deemed

Relevant

by

the

Board

Members

The

Board,

including

the

Independent

Board

Members,

also

took

into

account

other

ancillary

or

“fall-out”

benefits

that

BlackRock

or

its

affiliates

may

derive

from

BlackRock’s

respective

relationships

with

each

Fund,

both

tangible

and

intangible,

such

as

BlackRock’s

ability

to

leverage

its

investment

professionals

who

manage

other

portfolios

and

its

risk

management

personnel,

an

increase

in

BlackRock’s

profile

in

the

investment

advisory

community,

and

the

engagement

of

BlackRock’s

affiliates

as

service

providers

to

each

Fund,

including

for

administrative,

distribution,

securities

lending

and

cash

management

services.

The

Board

also

considered

BlackRock’s

overall

operations

and

its

efforts

to

expand

the

scale

of,

and

improve

the

quality

of,

its

operations.

The

Board

also

noted

that,

subject

to

applicable

law,

BlackRock

may

use

and

benefit

from

third-party

research

obtained

by

soft

dollars

generated

by

certain

registered

fund

transactions

to

assist

in

managing

all

or

a

number

of

its

other

client

accounts.

In

connection

with

its

consideration

of

the

Agreements,

the

Board

also

received

information

regarding

BlackRock’s

brokerage

and

soft

dollar

practices.

The

Board

received

reports

from

BlackRock

which

included

information

on

brokerage

commissions

and

trade

execution

practices

throughout

the

year.

The

Board

noted

the

competitive

nature

of

the

open-end

fund

marketplace,

and

that

shareholders

are

able

to

redeem

their

Fund

shares

if

they

believe

that

each

Fund’s

fees

and

expenses

are

too

high

or

if

they

are

dissatisfied

with

the

performance

of

each

Fund.

Disclosure

of

Investment

Advisory

Agreement

and

Sub-Advisory

Agreements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

114

Conclusion

At

the

May

Meeting,

as

a

result

of

the

discussions

that

occurred

during

the

April

Meeting,

and

as

a

culmination

of

the

Board’s

year-long

deliberative

process,

the

Board,

including

the

Independent

Board

Members,

approved,

by

unanimous

vote

of

those

present,

the

continuation

of

the

Advisory

Agreement

between

the

Manager

and

the

Trust,

on

behalf

of

each

Fund,

for

a

one-year

term

ending

June

30,

2023,

and

the

Sub-Advisory

Agreements

between

the

Manager

and

the

Sub-Advisors,

with

respect

to

each

Fund,

for

a

one-year

term

ending

June

30,

2023.

Based

upon

its

evaluation

of

all

of

the

aforementioned

factors

in

their

totality,

as

well

as

other

information,

the

Board,

including

the

Independent

Board

Members,

was

satisfied

that

the

terms

of

the

Agreements

were

fair

and

reasonable

and

in

the

best

interest

of

each

Fund

and

its

shareholders.

In

arriving

at

its

decision

to

approve

the

Agreements,

the

Board

did

not

identify

any

single

factor

or

group

of

factors

as

all-important

or

controlling,

but

considered

all

factors

together,

and

different

Board

Members

may

have

attributed

different

weights

to

the

various

factors

considered.

The

Independent

Board

Members

were

also

assisted

by

the

advice

of

independent

legal

counsel

in

making

this

determination.

Trustee

and

Officer

Information

115

Trustee

and

Officer

Information

Independent

Trustees

(a)

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

R.

Glenn

Hubbard

1958

Chair

of

the

Board

(Since

2022)

Trustee

(Since

2019)

Dean,

Columbia

Business

School

from

2004

to

2019;

Faculty

member,

Columbia

Business

School

since

1988.

69

RICs

consisting

of

100

Portfolios

ADP

(data

and

information

services)

2004-2020;

Metropolitan

Life

Insurance

Company

(insurance);

KKR

Financial

Corporation

(finance)

from

2004

until

2014

W.

Carl

Kester

(d)

1951

Vice

Chair

of

the

Board

(Since

2022)

Trustee

(Since

2019)

George

Fisher

Baker

Jr.

Professor

of

Business

Administration,

Harvard

Business

School

since

2008;

Deputy

Dean

for

Academic

Affairs

from

2006

to

2010;

Chairman

of

the

Finance

Unit,

from

2005

to

2006;

Senior

Associate

Dean

and

Chairman

of

the

MBA

Program

from

1999

to

2005;

Member

of

the

faculty

of

Harvard

Business

School

since

1981.

71

RICs

consisting

of

102

Portfolios

None

Cynthia

L.

Egan

1955

Trustee

(Since

2019)

Advisor,

U.S.

Department

of

the

Treasury

from

2014

to

2015;

President,

Retirement

Plan

Services,

for

T.

Rowe

Price

Group,

Inc.

from

2007

to

2012;

executive

positions

within

Fidelity

Investments

from

1989

to

2007.

69

RICs

consisting

of

100

Portfolios

Unum

(insurance);

The

Hanover

Insurance

Group

(Board

Chair)

(insurance);

Huntsman

Corporation

(Lead

Independent

Director

and

non

Executive

Vice

Chair

of

the

Board)

(chemical

products);

Envestnet

(investment

platform)

from

2013

until

2016

Frank

J.

Fabozzi

(d)

1948

Trustee

(Since

2019)

Editor

of

The

Journal

of

Portfolio

Management

since

1986;

Professor

of

Finance,

EDHEC

Business

School

(France)

from

2011

to

2022;

Professor

of

Practice,

Johns

Hopkins

University

since

2021;

Visiting

Professor,

Princeton

University

for

the

2013

to

2014

academic

year

and

Spring

2017

semester;

Professor

in

the

Practice

of

Finance,

Yale

University

School

of

Management

from

1994

to

2011

and

currently

a

Teaching

Fellow

in

Yale's

Executive

Programs;

Board

Member,

BlackRock

Equity-Liquidity

Funds

from

2014

to

2016;

affiliated

professor

Karlsruhe

Institute

of

Technology

from

2008

to

2011;

Visiting

Professor,

Rutgers

University

for

the

Spring

2019

semester;

Visiting

Professor,

New

York

University

for

the

2019

academic

year;

Adjunct

Professor

of

Finance,

Carnegie

Mellon

University

in

fall

2020

semester.

71

RICs

consisting

of

102

Portfolios

None

Lorenzo

A.

Flores

1964

Trustee

(Since

2021)

Vice

Chairman,

Kioxia,

Inc.

since

2019;

Chief

Financial

Officer,

Xilinx,

Inc.

from

2016

to

2019;

Corporate

Controller,

Xilinx,

Inc.

from

2008

to

2016.

69

RICs

consisting

of

100

Portfolios

None

Stayce

D.

Harris

1959

Trustee

(Since

2021)

Lieutenant

General,

Inspector

General,

Office

of

the

Secretary

of

the

United

States

Air

Force

from

2017

to

2019;

Lieutenant

General,

Assistant

Vice

Chief

of

Staff

and

Director,

Air

Staff,

United

States

Air

Force

from

2016

to

2017;

Major

General,

Commander,

22nd

Air

Force,

AFRC,

Dobbins

Air

Reserve

Base,

Georgia

from

2014

to

2016;

Pilot,

United

Airlines

from

1990

to

2020.

69

RICs

consisting

of

100

Portfolios

The

Boeing

Company

J.

Phillip

Holloman

1955

Trustee

(Since

2021)

President

and

Chief

Operating

Officer,

Cintas

Corporation

from

2008

to

2018.

69

RICs

consisting

of

100

Portfolios

PulteGroup,

Inc.

(home

construction);

Rockwell

Automation

Inc.

(industrial

automation)

Catherine

A.

Lynch

(d)

1961

Trustee

(Since

2019)

Chief

Executive

Officer,

Chief

Investment

Officer

and

various

other

positions,

National

Railroad

Retirement

Investment

Trust

from

2003

to

2016;

Associate

Vice

President

for

Treasury

Management,

The

George

Washington

University

from

1999

to

2003;

Assistant

Treasurer,

Episcopal

Church

of

America

from

1995

to

1999.

71

RICs

consisting

of

102

Portfolios

PennyMac

Mortgage

Investment

Trust

Trustee

and

Officer

Information

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

116

Interested

Trustees

(a)(e)

(a)

The

address

of

each

Trustee

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Each

Independent

Trustee

holds

office

until

his

or

her

successor

is

duly

elected

and

qualifies

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

charter

or

statute,

or

until

December

31

of

the

year

in

which

he

or

she

turns

75.

Trustees

who

are

“interested

persons,”

as

defined

in

the

Investment

Company

Act

serve

until

their

successor

is

duly

elected

and

qualifies

or

until

their

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Trust’s

by-laws

or

statute,

or

until

December

31

of

the

year

in

which

they

turn

72.

The

Board

may

determine

to

extend

the

terms

of

Independent

Trustees

on

a

case-by-case

basis,

as

appropriate.

(c)

Following

the

combination

of

Merrill

Lynch

Investment

Managers,

L.P.

(“MLIM”)

and

BlackRock,

Inc.

in

September

2006,

the

various

legacy

MLIM

and

legacy

BlackRock

fund

boards

were

realigned

and

consolidated

into

three

new

fund

boards

in

2007.

Certain

Independent

Trustees

first

became

members

of

the

boards

of

other

legacy

MLIM

or

legacy

BlackRock

funds

as

follows:

Frank

J.

Fabozzi,

1988;

R.

Glenn

Hubbard,

2004;

and

W.

Carl

Kester,

1995.

Certain

other

Independent

Trustees

became

members

of

the

boards

of

the

closed-end

funds

in

the

Fixed-Income

Complex

as

follows:

Cynthia

L.

Egan,

2016;

and

Catherine

A.

Lynch,

2016.

(d)

Dr.

Fabozzi,

Dr.

Kester,

Ms.

Lynch

and

Mr.

Perlowski

are

also

trustees

of

the

BlackRock

Credit

Strategies

Fund

and

BlackRock

Private

Investments

Fund.

(e)

Mr.

Fairbairn

and

Mr.

Perlowski

are

both

“interested

persons,”

as

defined

in

the

1940

Act,

of

the

Trust

based

on

their

positions

with

BlackRock,

Inc.

and

its

affiliates.

Mr.

Fairbairn

and

Mr.

Perlowski

are

also

board

members

of

the

BlackRock

Multi-Asset

Complex.

Robert

Fairbairn

1965

Trustee

(Since

2015)

Vice

Chairman

of

BlackRock,

Inc.

since

2019;

Member

of

BlackRock's

Global

Executive

and

Global

Operating

Committees;

Co-Chair

of

BlackRock's

Human

Capital

Committee;

Senior

Managing

Director

of

BlackRock,

Inc.

from

2010

to

2019;

oversaw

BlackRock's

Strategic

Partner

Program

and

Strategic

Product

Management

Group

from

2012

to

2019;

Member

of

the

Board

of

Managers

of

BlackRock

Investments,

LLC

from

2011

to

2018;

Global

Head

of

BlackRock's

Retail

and

iShares

®

businesses

from

2012

to

2016.

97

RICs

consisting

of

264

Portfolios

None

John

M.

Perlowski

(d)

1964

Trustee

(Since

2015);

President

and

Chief

Executive

Officer

(Since

2010)

Managing

Director

of

BlackRock,

Inc.

since

2009;

Head

of

BlackRock

Global

Accounting

and

Product

Services

since

2009;

Advisory

Director

of

Family

Resource

Network

(charitable

foundation)

since

2009.

99

RICs

consisting

of

266

Portfolios

None

Trustee

and

Officer

Information

(continued)

117

Trustee

and

Officer

Information

Officers

Who

Are

Not

Trustees

(a)

(a)

The

address

of

each

Officer

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Officers

of

the

Trust

serve

at

the

pleasure

of

the

Board.

Further

information

about

the

Trust’s

Trustees

and

Officers

is

available

in

the

Trust’s

Statement

of

Additional

Information,

which

can

be

obtained

without

charge

by

calling

(800)

441-7762.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

Principal

Occupation(s)

During

Past

Five

Years

Jennifer

McGovern

1977

Vice

President

(Since

2014)

Managing

Director

of

BlackRock,

Inc.

since

2016;

Director

of

BlackRock,

Inc.

from

2011

to

2015;

Head

of

Americas

Product

Development

and

Governance

for

BlackRock’s

Global

Product

Group

since

2019;

Head

of

Product

Structure

and

Oversight

for

BlackRock's

U.S.

Wealth

Advisory

Group

from

2013

to

2019.

Trent

Walker

1974

Chief

Financial

Officer

(Since

2021)

Managing

Director

of

BlackRock,

Inc.

since

September

2019;

Executive

Vice

President

of

PIMCO

from

2016

to

2019;

Senior

Vice

President

of

PIMCO

from

2008

to

2015;

Treasurer

from

2013

to

2019

and

Assistant

Treasurer

from

2007

to

2017

of

PIMCO

Funds,

PIMCO

Variable

Insurance

Trust,

PIMCO

ETF

Trust,

PIMCO

Equity

Series,

PIMCO

Equity

Series

VIT,

PIMCO

Managed

Accounts

Trust,

2

PIMCO-sponsored

interval

funds

and

21

PIMCO-sponsored

closed-end

funds.

Jay

M.

Fife

1970

Treasurer

(Since

2007)

Managing

Director

of

BlackRock,

Inc.

since

2007.

Charles

Park

1967

Chief

Compliance

Officer

(Since

2014)

Anti-Money

Laundering

Compliance

Officer

for

certain

BlackRock-advised

Funds

from

2014

to

2015;

Chief

Compliance

Officer

of

BlackRock

Advisors,

LLC

and

the

BlackRock-advised

Funds

in

the

BlackRock

Multi-Asset

Complex

and

the

BlackRock

Fixed-Income

Complex

since

2014;

Principal

of

and

Chief

Compliance

Officer

for

iShares

®

Delaware

Trust

Sponsor

LLC

since

2012

and

BlackRock

Fund

Advisors

(“BFA”)

since

2006;

Chief

Compliance

Officer

for

the

BFA-advised

iShares

®

exchange

traded

funds

since

2006;

Chief

Compliance

Officer

for

BlackRock

Asset

Management

International

Inc.

since

2012.

Lisa

Belle

1968

Anti-Money

Laundering

Compliance

Officer

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2019;

Global

Financial

Crime

Head

for

Asset

and

Wealth

Management

of

JP

Morgan

from

2013

to

2019;

Managing

Director

of

RBS

Securities

from

2012

to

2013;

Head

of

Financial

Crimes

for

Barclays

Wealth

Americas

from

2010

to

2012.

Janey

Ahn

1975

Secretary

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Director

of

BlackRock,

Inc.

from

2009

to

2017.

Effective

May

31,

2022,

Karen

P.

Robards

retired

as

a

Trustee

of

the

Trust.

Effective

December

31,

2021,

Richard

E.

Cavanagh

and

Michael

J.

Castellano

retired

as

Trustees

of

the

Trust.

Additional

Information

2022

BlackRock

Annual

Report

to

Shareholders

118

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports

,

current

net

asset

value

and

other

information

regarding

the

Funds

may

be

found

on

BlackRock’s

website,

which

can

be

accessed

at

blackrock.com

.

Any

reference

to

BlackRock’s

website

in

this

report

is

intended

to

allow

investors

public

access

to

information

regarding

the

Funds

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

Householding

The

Funds

will

mail

only

one

copy

of

shareholder

documents,

including

prospectuses,

annual

and

semi-annual

reports,

Rule

30e-3

notices

and

proxy

statements,

to

shareholders

with

multiple

accounts

at

the

same

address.

This

practice

is

commonly

called

“householding”

and

is

intended

to

reduce

expenses

and

eliminate

duplicate

mailings

of

shareholder

documents.

Mailings

of

your

shareholder

documents

may

be

householded

indefinitely

unless

you

instruct

us

otherwise.

If

you

do

not

want

the

mailing

of

these

documents

to

be

combined

with

those

for

other

members

of

your

household,

please

call

the

Funds at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments

The

Funds

file

their

complete

schedules

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to their

reports

on

Form

N-PORT.

The

Funds’

Forms

N-PORT are

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

each

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/fundreports

.

Availability

of

Proxy

Voting

Policies,

Procedures

and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Funds

use

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

information

about

how

the

Funds

voted

proxies

relating

to

securities

held

in

the

Funds'

portfolios

during

the

most

recent

12-month

period

ended

June

30 is

available

without

charge,

upon

request (1)

by

calling

(800)

441-

7762

;

(2)

on

the

BlackRock

website

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800)

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

Additional

Information

(continued)

119

Additional

Information

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Advisers

BlackRock

International

Limited

(a)

Edinburgh,

EH3

8BL

United

Kingdom

BlackRock

(Singapore)

Limited

(b)

079912

Singapore

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10022

Legal

Counsel

Willkie

Farr

&

Gallagher

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

(a)

For

BlackRock

Income

Fund

and

BlackRock

Impact

Mortgage

Fund.

(b)

For

BlackRock

Income

Fund.

Glossary

of

Terms

Used

in

this

Report

2022

BlackRock

Annual

Report

to

Shareholders

120

Currency

Abbreviation

CHF

Swiss

Franc

COP

Colombian

Peso

EUR

Euro

GBP

British

Pound

MXN

Mexican

Peso

USD

United

States

Dollar

Portfolio

Abbreviation

ABS

Asset-Backed

Security

CDI

Crest

Depository

Interests

CLO

Collateralized

Loan

Obligation

CSMC

Credit

Suisse

Mortgage

Capital

DAC

Designated

Activity

Company

ETF

Exchange-Traded

Fund

EURIBOR

Euro

Interbank

Offered

Rate

LIBOR

London

Interbank

Offered

Rate

MSCI

Morgan

Stanley

Capital

International

OTC

Over-the-counter

PCL

Public

Company

Limited

PIK

Payment-In-Kind

PJSC

Public

Joint

Stock

Company

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

TBA

To-be-announced

Want

to

know

more?

blackrock.com

|

800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

Funds

unless

preceded

or

accompanied

by

the

Funds’

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Statements

and

other

information

herein

are

as

dated

and

are

subject

to

change.

TaxableCGU-9/22-AR

September

30,

2022

Not

FDIC

Insured

-

May

Lose

Value

-

No

Bank

Guarantee

2022

Annual

Report

BlackRock

Funds

V

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Bond

Fund,

Inc.

BlackRock

Sustainable

Total

Return

Fund

Dear

Shareholder,

The

12-month

reporting

period

as

of

September

30,

2022

saw

the

emergence

of

significant

challenges

that

disrupted

the

economic

recovery

and

strong

financial

markets

of

2021.

The

U.S.

economy

shrank

in

the

first

half

of

2022,

ending

the

run

of

robust

growth

that

followed

the

reopening

of

global

economies

and

the

development

of

COVID-19

vaccines.

Changes

in

consumer

spending

patterns

and

a

tight

labor

market

led

to

elevated

inflation,

which

reached

a

40-year

high.

Moreover,

while

the

foremost

effect

of

Russia’s

invasion

of

Ukraine

has

been

a

severe

humanitarian

crisis,

the

ongoing

war

continued

to

present

challenges

for

both

investors

and

policymakers.

Equity

prices

fell

as

interest

rates

rose,

particularly

weighing

on

relatively

high-valuation

growth

stocks

and

economically

sensitive

small-capitalization

stocks.

While

both

large-

and

small-capitalization

U.S.

stocks

fell,

declines

for

small-capitalization

U.S.

stocks

were

steeper.

Both

emerging

market

stocks

and

international

equities

from

developed

markets

fell

significantly,

pressured

by

rising

interest

rates

and

a

strengthening

U.S.

dollar.

The

10-year

U.S.

Treasury

yield

(which

is

inversely

related

to

bond

prices)

rose

notably

during

the

reporting

period

as

investors

reacted

to

higher

inflation

and

attempted

to

anticipate

its

impact

on

future

interest

rate

changes.

The

corporate

bond

market

also

faced

inflationary

headwinds,

and

increasing

uncertainty

led

to

higher

corporate

bond

spreads

(the

difference

in

yield

between

U.S.

Treasuries

and

similarly-dated

corporate

bonds).

The

U.S.

Federal

Reserve

(the

“Fed”),

acknowledging

that

inflation

is

proving

more

persistent

than

expected,

raised

interest

rates

five

times

while

indicating

that

additional

rate

hikes

were

likely.

Furthermore,

the

Fed

wound

down

its

bond-buying

programs

and

is

accelerating

the

reduction

of

its

balance

sheet.

As

investors

attempted

to

assess

the

Fed’s

future

trajectory,

the

Fed’s

statements

late

in

the

reporting

period

led

markets

to

believe

that

additional

tightening

is

likely

in

the

near

term.

The

pandemic’s

restructuring

of

the

economy

brought

an

ongoing

mismatch

between

supply

and

demand,

contributing

to

the

current

inflationary

regime.

While

growth

has

slowed

in

2022,

we

believe

that

taming

inflation

requires

a

more

dramatic

economic

decline

to

bring

demand

back

to

a

lower

level

that

is

more

in

line

with

the

economy’s

capacity.

The

Fed

has

been

raising

interest

rates

at

the

fastest

pace

in

decades,

and

seems

set

to

overtighten

in

its

effort

to

get

inflation

back

to

target.

With

this

in

mind,

we

believe

the

possibility

of

a

U.S.

recession

in

the

near-term

is

high,

and

the

outlook

for

Europe

and

the

U.K.

is

also

troubling.

Investors

should

expect

a

period

of

higher

volatility

as

markets

adjust

to

the

new

economic

reality

and

policymakers

attempt

to

adapt

to

rapidly

changing

conditions.

In

this

environment,

while

we

favor

an

overweight

to

equities

in

the

long-term,

the

market’s

concerns

over

excessive

rate

hikes

from

central

banks

moderate

our

outlook.

Rising

input

costs

and

a

deteriorating

economic

backdrop

in

China

and

Europe

are

likely

to

challenge

corporate

earnings,

so

we

are

underweight

equities

overall

in

the

near

term.

However,

we

see

better

opportunities

in

credit,

where

higher

spreads

provide

income

opportunities

and

partially

compensate

for

inflation

risk.

We

believe

that

investment-grade

corporates,

local-

currency

emerging

market

debt,

and

inflation-protected

bonds

(particularly

in

Europe)

offer

strong

opportunities

for

a

six-

to

twelve-month

horizon.

Overall,

our

view

is

that

investors

need

to

think

globally,

position

themselves

to

be

prepared

for

a

decarbonizing

economy,

and

be

nimble

as

market

conditions

change.

We

encourage

you

to

talk

with

your

financial

advisor

and

visit

blackroc

k.com

for

further

insight

about

investing

in

today’s

markets.

Sincerely,

Rob

Kapito

President,

BlackRock

Advisors,

LLC

The

Markets

in

Review

Rob

Kapito

President,

BlackRock

Advisors,

LLC

Past

performance

is

not

an

indication

of

future

results.

Index

performance

is

shown

for

illustrative

purposes

only.

You

cannot

invest

directly

in

an

index.

Total

Returns

as

of

September

30,

2022

6-Month

12-Month

U.S.

large

cap

equities

(S&P

500

®

Index)

(20.20

)%

(15.47

)%

U.S.

small

cap

equities

(Russell

2000

®

Index)

(19.01

)

(23.50

)

International

equities

(MSCI

Europe,

Australasia,

Far

East

Index)

(22.51

)

(25.13

)

Emerging

market

equities

(MSCI

Emerging

Markets

Index)

(21.70

)

(28.11

)

3-month

Treasury

bills

(ICE

BofA

3-Month

U.S.

Treasury

Bill

Index)

0.58

0.63

U.S.

Treasury

securities

(ICE

BofA

10-Year

U.S.

Treasury

Index)

(10.81

)

(16.20

)

U.S.

investment

grade

bonds

(Bloomberg

U.S.

Aggregate

Bond

Index)

(9.22

)

(14.60

)

Tax-exempt

municipal

bonds

(Bloomberg

Municipal

Bond

Index)

(6.30

)

(11.50

)

U.S.

high

yield

bonds

(Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index)

(10.42

)

(14.15

)

This

Page

is

not

Part

of

Your

Fund

Report

2

Table

of

Contents

Page

3

The

Markets

in

Review

...................................................................................................

2

Annual

Report:

Fund

Summaries

.......................................................................................................

4

About

Fund

Performance

.................................................................................................

13

Disclosure

of

Expenses

...................................................................................................

14

Derivative

Financial

Instruments

.............................................................................................

14

Financial

Statements:

Schedules

of

Investments

...............................................................................................

15

Statements

of

Assets

and

Liabilities

.........................................................................................

52

Statements

of

Operations

................................................................................................

55

Statements

of

Changes

in

Net

Assets

........................................................................................

56

Financial

Highlights

.....................................................................................................

58

Notes

to

Financial

Statements

...............................................................................................

67

Report

of

Independent

Registered

Public

Accounting

Firm

..............................................................................

82

Important

Tax

Information

.................................................................................................

83

Director

and

Officer

Information

..............................................................................................

84

Additional

Information

....................................................................................................

87

Glossary

of

Terms

Used

in

this

Report

..........................................................................................

89

Fund

Summary

as

of

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

4

BlackRock

Sustainable

High

Yield

Bond

Fund

Investment

Objective

BlackRock

Sustainable

High

Yield

Bond

Fund's

(the

“Fund”)

investment

objective

is

to

seek

to

maximize

total

return,

consistent

with

income

generation

and

prudent

investment

management,

while

seeking

to

maintain

certain

environmental,

governance

and

social

(“ESG”)

characteristics,

climate

risk

exposure

and

climate

opportunities

relative

to

the

Fund’s

benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

12-month

period

ended

September

30,

2022,

the

Fund’s

Class

K

and

Institutional

Shares

outperformed

the

benchmark,

the

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index.

For

the

same

period,

the

Investor

A

shares

performed

in

line.

What

factors

influenced

performance?

The

Fund’s

underweight

in

the

midstream

energy

sector

was

a

strong

contributor

to

relative

performance,

as

were

underweights

in

the

retail

and

pharmaceuticals

sectors.

An

underweight

in

BB

rated

bonds

also

contributed.

Asset

allocation

was

an

additional

contributor,

highlighted

by

a

tactical,

out-of-benchmark

allocation

to

senior

loans.

Securities

in

the

category

typically

offer

floating

rates,

which

led

to

heightened

investor

demand

in

the

rising-rate

environment.

On

the

other

hand,

overweights

in

the

technology

and

wireline

telecommunications

sectors

hurt

performance.

Liquid

products

used

to

manage

the

Fund’s

positioning,

including

derivatives,

credit

default

swaps

and

exchange-traded

funds,

detracted

from

results.

An

overweight

in

CCC

issues,

which

lagged

the

broader

market,

also

detracted.

Describe

recent

portfolio

activity.

The

investment

adviser

strived

to

maintain

below-average

portfolio

risk

at

a

time

of

elevated

concerns

about

rising

interest

rates

and

slowing

economic

growth.

The

investment

adviser

sought

to

accomplish

this

by

reducing

the

Fund’s

credit

exposure

and

lowering

portfolio

duration

(interest

rate

sensitivity)

over

the

course

of

the

period.

The

investment

adviser

also

reduced

the

Fund’s

tactical

allocation

to

equities,

while

maintaining

its

position

in

senior

loans.

At

the

sector

level,

the

investment

adviser

reduced

the

portfolio’s

weighting

in

healthcare

issues.

Describe

portfolio

positioning

at

period

end.

B

rated

bonds

were

the

Fund’s

largest

position

by

credit

rating,

followed

by

BBs

and

CCCs,

respectively.

The

Fund

remained

underweight

in

the

distressed

category.

Loans

were

less

than

10%

of

the

portfolio.

The

investment

adviser

stayed

focused

on

bottom-up

security

selection,

assessing

each

issuer

in

the

portfolio

to

assess

the

potential

impact

of

the

headwinds

facing

the

economy.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

5

Fund

Summary

BlackRock

Sustainable

High

Yield

Bond

Fund

GROWTH

OF

$10,000

INVESTMENT

The

Fund

commenced

operations

on

July

22,

2021.

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

Assuming

maximum

sales

charges,

if

any,

tr

ansaction

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

non-investment

grade

bonds

with

maturities

of

ten

years

or

less.

The

Fund

normally

invests

at

least

80%

of

its

net

assets,

plus

the

amount

of

any

borrowings

for

investment

purposes,

in

high

yield

bonds.

(c)

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index,

an

unmanaged

index

comprised

of

issues

that

meet

the

following

criteria:

at

least

$150

million

par

value

outstanding;

maximum

credit

rating

of

Ba1;

at

least

one

year

to

maturity;

and

no

issuer

represents

more

than

2%

of

the

index.

Average

Annual

Total

Returns

(a)

1

Year

Since

Inception

(b)

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Without

Sales

Charge

With

Sales

Charge

Institutional

..................................................

7.25‌%

5.84‌%

(13.97‌)%

N/A‌

(11.85‌)%

N/A‌%

Investor

A

...................................................

6.71‌

5.36‌

(14.18‌)

(17.61‌)%

(12.07‌)

(15.03‌)

Class

K

....................................................

7.29‌

6.05‌

(13.93‌)

N/A‌

(11.81‌)

N/A‌

Bloomberg

U.S.

Corporate

High

Yield

2%

Issuer

Capped

Index

............

—‌

—‌

(

14.15‌

)

N/A‌

(11.57‌)

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Average

annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees.

(b)

The

Fund

commenced

operations

on

July

22,

2021.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

6

BlackRock

Sustainable

High

Yield

Bond

Fund

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

...............................

$

1,000.00‌

$

896.00‌

$

2.71‌

$

1,000.00‌

$

1,022.21‌

$

2.89‌

0.57‌%

Investor

A

................................

1,000.00‌

896.20‌

3.90‌

1,000.00‌

1,020.96‌

4.15‌

0.82‌

Class

K

..................................

1,000.00‌

896.20‌

2.52‌

1,000.00‌

1,022.41‌

2.69‌

0.53‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

...................................

88.8‌

%

Floating

Rate

Loan

Interests

...........................

10.4‌

Common

Stocks

...................................

0.7‌

Preferred

Securities

.................................

0.1‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(b)

Percent

of

Total

Investments

(a)

BBB/Baa

.......................................

4.3‌

%

BB/Ba

.........................................

45.5‌

B

............................................

36.8‌

CCC/

Caa

.......................................

12.0‌

NR

...........................................

1.4‌

(a)

Excludes

short-term

securities.

(b)

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.

Fund

Summary

as

of

September

30,

2022

7

Fund

Summary

BlackRock

Sustainable

Low

Duration

Bond

Fund

Investment

Objective

BlackRock

Sustainable

Low

Duration

Bond

Fund's

(the

“Fund”)

investment

objective

is

to

seek

total

return

in

excess

of

the

reference

benchmark

in

a

manner

that

is

consistent

with

preservation

of

capital

while

seeking

to

maintain

certain

environmental,

social

and

governance

(“ESG”)

characteristics,

climate

risk

exposure

and

climate

opportunities

relative

to

the

Fund’s

benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

period

beginning

with

the

Fund’s

inception

on

October

18,

2021

and

ending

on

September

30,

2022,

the

Fund

underperformed

its

benchmark,

the

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index.

What

factors

influenced

performance?

Allocations

to

mortgage-backed

securities

(“MBS”),

investment-grade

corporate

bonds,

high

yield

bonds

and

asset-backed

securities

(“ABS”)

detracted

from

performance.

Duration

and

yield

curve

positioning

were

the

primary

contributors

to

performance,

followed

by

underweights

in

the

emerging

markets

and

U.S.

Treasuries.

(Duration

is

a

measure

of

interest

rate

sensitivity.)

The

Fund

held

derivatives

during

the

reporting

period.

Specifically,

it

used

futures

and

interest

rate

swaps

to

manage

its

duration

and

yield

curve

positioning.

It

also

used

currency

forward

contracts

to

manage

currency

risk

or

take

active

currency

positions,

and

it

used

options

on

swaps

to

express

views

on

volatility.

In

the

aggregate,

the

Fund’s

use

of

derivatives

had

a

positive

impact

on

performance.

The

Fund’s

cash

position

had

no

material

impact

on

performance.

Describe

recent

portfolio

activity.

The

Fund

held

a

short

duration

bias

early

in

the

reporting

period,

based

on

the

view

that

persistent

inflation

would

prompt

the

Fed

to

keep

raising

interest

rates.

Toward

the

end

of

the

summer

of

2022,

the

market

started

to

price

in

a

terminal

fed

funds

rate

(in

other

words,

the

point

at

which

the

Fed

could

stop

hiking)

in

the

range

of

4.25-4.5%.

As

a

result,

the

investment

adviser

shifted

the

Fund

to

neutral

duration

stance.

In

September

2022,

the

Fund

adopted

a

slightly

long

duration

bias.

This

shift

reflected

the

investment

adviser’s

view

that

the

market

was

close

to

pricing

in

the

full

extent

of

Fed

rate

hikes.

The

Fund

tactically

adjusted

its

positioning

in

investment-grade

corporate

bonds

during

the

course

of

the

year,

with

a

preference

for

new-issue

deals

that

offered

attractive

concessions.

While

credit

fundamentals

largely

remained

stable,

reinforced

by

solid

earnings

and

a

healthy

U.S.

labor

market,

the

investment

adviser

slightly

trimmed

to

the

allocation

to

corporate

issues

in

the

second

and

third

quarters

of

2022

and

rotated

into

Treasuries

on

the

expectation

that

yield

spreads

would

widen.

The

investment

adviser

maintained

a

steady

positioning

within

high

yield,

where

it

held

an

allocation

to

help

enhance

portfolio

income.

Similarly,

the

investment

adviser

maintained

the

Fund’s

position

in

ABS,

with

a

focus

on

deals

backed

by

high-quality

consumer

collateral.

It

also

added

to

AAA

rated

collateralized

loan

obligations

in

both

the

primary

and

secondary

markets

throughout

the

period,

as

the

category’s

attractive

yields

versus

corporates

created

a

compelling

relative

value

opportunity.

Within

commercial

mortgage-backed

securities

(“CMBS”),

the

investment

adviser

maintained

an

allocation

to

multi-family

deals

on

the

belief

that

they

could

prove

resilient

in

a

recession.

Since

the

Fund

is

managed

with

sustainability

goals

in

mind,

the

investment

adviser

invested

in

impact

MBS.

Impact

MBS

are

custom

pools

created

by

Fannie

Mae

for

BlackRock

that

support

the

former’s

“Duty

to

Serve”

goals.

These

pools

include

specific

mortgage

borrowers,

such

as

low-income

and

very

low-income

family

homes,

as

well

as

homes

in

low-income

and

high-minority

areas.

In

general,

such

mortgages

provide

credit

to

a

targeted

group

of

borrowers,

for

whom

the

benefits

of

homeownership

could

have

a

significant

social

impact.

The

investment

adviser

also

increased

the

Fund’s

allocation

to

green

bonds

in

the

first

half

of

the

period.

Unlike

a

debt

offering

from

a

company

that

presents

its

overall

operations

as

environmentally

friendly,

green

bond

proceeds

are

ring-fenced

on

the

issuer’s

balance

sheet,

set

aside

for

the

exclusive

purpose

of

financing

one

or

more

projects

deemed

environmentally

beneficial.

The

investment

adviser

primarily

added

green

bonds

from

AAA

rated

sovereign

issuers.

Describe

portfolio

positioning

at

period

end.

The

Fund

had

a

long

duration

bias

predicated

on

the

view

that

the

market

was

close

to

pricing

in

the

Fed’s

terminal

rate

accurately.

The

Fund

maintained

an

allocation

to

U.S.

Treasuries

on

the

belief

the

economy

would

eventually

slow,

but

it

was

underweight

in

the

asset

class.

The

Fund

was

overweight

in

investment-grade

corporate

bonds.

Relative

to

the

government/credit

index,

the

Fund

held

structural

out-of-benchmark

allocations

to

high

yield

bonds,

ABS,

CMBS

and

agency

and

non-agency

MBS.

The

views

expressed

reflect

the

opinions

of

BlackRock

as

of

the

date

of

this

report

and

are

subject

to

change

based

on

changes

in

market,

economic

or

other

conditions.

These

views

are

not

intended

to

be

a

forecast

of

future

events

and

are

no

guarantee

of

future

results.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

8

BlackRock

Sustainable

Low

Duration

Bond

Fund

GROWTH

OF

$10,000

INVESTMENT

The

Fund

commenced

operations

on

October

18,

2021.

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

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

normally

invests

at

least

80%

of

its

assets

in

bonds.

The

Fund

may

invest

up

to

20%

of

its

assets

in

non-investment

grade

bonds

(commonly

called

“high

yield”

or

“junk

bonds”).

(c)

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index,

an

unmanaged

index

comprised

of

investment

grade

corporate

bonds

and

U.S.

Government

Agency

and

U.S.

Treasury

securities

with

a

maturity

ranging

from

one

to

three

years.

Total

Returns

(a)

Since

Inception

(b)

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Institutional

..........................................................................

3.50‌%

2.58‌%

(6.24‌)%

N/A‌

Investor

A

...........................................................................

3.17‌

2.31‌

(6.46‌)

(8.57‌)

%

Class

K

............................................................................

3.53‌

2.76‌

(6.20‌)

N/A‌

ICE

BofA

1-3

Year

U.S.

Corporate

&

Government

Index

..........................................

—‌

—‌

(4.91‌)

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees

.

(b)

The

Fund

commenced

operations

on

October

18,

2021.

Fund

Summary

as

of

September

30,

2022

(continued)

9

Fund

Summary

BlackRock

Sustainable

Low

Duration

Bond

Fund

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

...............................

$

1,000.00‌

$

967.40‌

$

1.87‌

$

1,000.00‌

$

1,023.16‌

$

1.93‌

0.38‌%

Investor

A

................................

1,000.00‌

966.20‌

3.15‌

1,000.00‌

1,021.86‌

3.24‌

0.64‌

Class

K

..................................

1,000.00‌

967.60‌

1.73‌

1,000.00‌

1,023.31‌

1.78‌

0.35‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

Corporate

Bonds

...................................

34.0‌

%

U.S.

Treasury

Obligations

.............................

28.1‌

Asset-Backed

Securities

..............................

14.7‌

U.S.

Government

Sponsored

Agency

Securities

..............

10.6‌

Non-Agency

Mortgage-Backed

Securities

..................

7.3‌

Foreign

Agency

Obligations

............................

5.3‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(b)

Percent

of

Total

Investments

(a)

AAA/Aaa

(c)

......................................

62.4‌

%

AA/Aa

.........................................

1.0‌

A

............................................

12.1‌

BBB/Baa

.......................................

15.8‌

BB/Ba

.........................................

3.8‌

B

............................................

1.9‌

CCC/Caa

.......................................

0.0‌

(d)

NR

...........................................

3.0‌

(a)

Excludes

short-term

securities

and

TBA

sale

commitments.

(b)

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.

(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

0.1%

of

the

Fund's

total

investments.

Fund

Summary

as

of

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

10

BlackRock

Sustainable

Total

Return

Fund

Investment

Objective

BlackRock

Sustainable

Total

Return

Fund’s

(the

“Fund”)

investment

objective

is

to

realize

a

total

return

that

exceeds

that

of

the

Bloomberg

U.S.

Aggregate

Bond

Index

(the

"Benchmark")

while

seeking

to

maintain

certain

environmental,

social

and

governance

(“ESG”)

characteristics,

climate

risk

exposure

and

climate

opportunities

relative

to

the

Benchmark.

Portfolio

Management

Commentary

How

did

the

Fund

perform?

For

the

period

beginning

with

the

Fund’s

inception

on

October

18,

2021

and

ending

on

September

30,

2022,

the

Fund

underperformed

its

benchmark,

the

Bloomberg

U.S.

Aggregate

Bond

Index.

What

factors

influenced

performance?

The

Fund’s

allocation

to

securitized

assets,

U.S.

high

yield

bonds,

and

European

corporate

issues

detracted

from

relative

performance.

Its

duration

and

yield

curve

positioning

contributed,

as

did

its

positioning

with

respect

to

foreign

currencies.

(Duration

is

a

measure

of

interest

rate

sensitivity.)

Describe

recent

portfolio

activity.

The

investment

environment

was

highly

challenging,

with

most

areas

of

the

fixed-income

market

losing

ground

on

concerns

about

high

inflation,

global

monetary

policy

tightening,

Russia’s

invasion

of

Ukraine,

and

the

prospect

of

slowing

economic

growth.

Given

these

crosscurrents,

the

investment

adviser

maintained

a

defensive

positioning

in

the

early

part

of

the

period.

It

favored-higher-quality

securities

during

this

time,

and

it

increased

the

portfolio’s

allocations

to

U.S.

investment-grade

corporate

bonds,

agency

mortgage-backed

securities

(“MBS”)

and

short-term

debt

within

the

securitized

category.

The

investment

adviser

also

tactically

added

to

duration

(interest-rate

sensitivity)

on

the

short

end

of

the

yield

curve

following

the

increase

in

yields

in

early

2022.

The

investment

adviser

maintained

low

allocations

to

high

yield

bonds

and

emerging

market

debt

due

to

the

ongoing

volatility

across

the

credit

sectors.

In

the

second

calendar

quarter

of

2022,

the

investment

advisor

tactically

moved

to

an

underweight

in

U.S.

duration

in

response

to

market

volatility

and

the

steepening

of

the

yield

curve.

It

also

added

a

position

in

Treasury

Inflation

Protected

Securities

due

to

their

attractive

valuations

and

ability

to

offset

rising

inflation.

The

investment

adviser

selectively

deployed

some

of

the

Fund’s

cash

position

as

both

yields

and

yield

spreads

reached

what

the

investment

adviser

saw

as

more

attractive

levels,

but

it

reduced

the

portfolio’s

allocation

to

agency

MBS.

The

investment

adviser

tactically

added

duration

on

the

front

end

of

the

yield

curve

in

the

third

quarter

2022.

It

moved

from

an

underweight

to

neutral

on

the

longer

end

on

the

belief

that

this

market

segment

had

begun

to

offer

a

more

favorable

risk/reward

profile

following

the

rise

in

yields.

It

also

actively

rotated

across

select

spread

sectors

to

capitalize

on

an

increasingly

compelling

opportunity

set.

The

investment

adviser

favored

U.S.

investment-grade

corporates

for

their

attractive

valuations,

and

tactically

added

to

agency

MBS.

The

investment

adviser

also

rotated

opportunistically

into

high-quality

securitized

assets

given

their

attractive

yields.

Describe

portfolio

positioning

at

period

end.

The

Fund

held

a

neutral

duration

positioning

relative

to

the

index.

It

was

overweight

in

investment-grade

corporate

bonds,

with

a

focus

on

short-term

issues,

and

it

favored

higher-quality

securities

in

collateralized

mortgage

obligations

and

commercial

mortgage-backed

securities.

The

investment

adviser

remained

cautious

on

the

emerging

markets,

and

maintained

a

limited

allocation

to

high

yield.

Within

high

yield,

the

investment

adviser

continued

to

emphasize

the

higher-quality

segments

of

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.

Fund

Summary

as

of

September

30,

2022

(continued)

11

Fund

Summary

BlackRock

Sustainable

Total

Return

Fund

GROWTH

OF

$10,000

INVESTMENT

The

Fund

commenced

operations

on

October

18,

2021.

Performance

N/A

-

Not

applicable

as

share

class

and

index

do

not

have

a

sales

charge.

Past

performance

is

not

an

indication

of

future

results.

Performance

results

may

include

adjustments

made

for

financial

reporting

purposes

in

accordance

with

U.S.

generally

accepted

accounting

principles.

(a)

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

typically

invests

more

than

90%

of

its

assets

in

a

diversified

portfolio

of

fixed-income

securities.

(c)

Bloomberg

U.S.

Aggregate

Bond

Index,

a

broad-based

flagship

benchmark

that

measures

the

investment

grade,

U.S.

dollar-denominated,

fixed-rate

taxable

bond

market.

Total

Returns

(a)

Since

Inception

(b)

Standardized

30-Day

Yields

Unsubsidized

30-Day

Yields

Without

Sales

Charge

With

Sales

Charge

Institutional

..........................................................................

3.72‌%

2.22‌%

(16.16‌)%

N/A‌

Investor

A

...........................................................................

3.30‌

1.90‌

(16.38‌)

(19.73‌)%

Class

K

............................................................................

3.76‌

2.42‌

(16.12‌)

N/A‌

Bloomberg

U.S.

Aggregate

Bond

Index

.....................................................

—‌

—‌

(14.44‌)

N/A‌

(a)

Assuming

maximum

sales

charges,

if

any.

Annual

total

returns

with

and

without

sales

charges

reflect

reductions

for

distribution

and

service

fees.

See

“About

Fund

Performance”

for

a

detailed

description

of

share

classes,

including

any

related

sales

charges

and

fees

.

(b)

The

Fund

commenced

operations

on

October

18,

2021.

Fund

Summary

as

of

September

30,

2022

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

12

BlackRock

Sustainable

Total

Return

Fund

Expense

Example

See

“Disclosure

of

Expenses”

for

further

information

on

how

expenses

were

calculated.

Portfolio

Information

Actual

H

ypothetical

5%

Re

turn

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Beginning

Account

Value

(04/01/22)

Ending

Account

Value

(09/30/22)

Expenses

Paid

During

the

Period

(a)

Annualized

Expense

Ratio

Institutional

...............................

$

1,000.00‌

$

897.40‌

$

2.05‌

$

1,000.00‌

$

1,022.91‌

$

2.18‌

0.43‌%

Investor

A

................................

1,000.00‌

896.10‌

3.37‌

1,000.00‌

1,021.51‌

3.60‌

0.71‌

Class

K

..................................

1,000.00‌

897.60‌

1.86‌

1,000.00‌

1,023.11‌

1.98‌

0.39‌

(a)

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

183/365

(to

reflect

the

one-half

year

period

shown).

PORTFOLIO

COMPOSITION

Asset

Type

Percent

of

at

Total

Investments

(a)

U.S.

Government

Sponsored

Agency

Securities

............

36.2‌

%

Corporate

Bonds

.................................

31.9‌

Asset-Backed

Securities

............................

12.6‌

U.S.

Treasury

Obligations

...........................

7.8‌

Non-Agency

Mortgage-Backed

Securities

................

5.7‌

Foreign

Government

Obligations

......................

3.5‌

Foreign

Agency

Obligations

..........................

1.6‌

Municipal

Bonds

.................................

0.5‌

Preferred

Securities

...............................

0.2‌

CREDIT

QUALITY

ALLOCATION

Credit

Rating

(b

)

Percent

of

Total

Investments

(a)

AAA/Aaa

(c

)

......................................

51.7‌

%

AA/Aa

.........................................

4.8‌

A

............................................

11.4‌

BBB/Baa

.......................................

21.6‌ 

BB/Ba

.........................................

0.9‌

B

............................................

0.4‌

CC/Ca

........................................

0.4‌

NR

...........................................

8.8‌

(a)

Excludes

short-term

securities,

options

purchased,

options

written

and

TBA

sale

commitments.

(b)

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.

(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.

About

Fund

Performance

13

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.

Investor

A

Shares

are

subject

to

a

maximum

initial

sales

charge

(front-end

load)

of

4.00%

for

BlackRock

Sustainable

High

Yield

Bond

Fund

and

BlackRock

Sustainable

Total

Return

Fund

and

2.25%

for

BlackRock

Sustainable

Low

Duration

Bond

Fund

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.

Past

performance

is

not

an

indication

of

future

results.

Financial

markets

have

experienced

extreme

volatility

and

trading

in

many

instruments

has

been

disrupted.

These

circumstances

may

continue

for

an

extended

period

of

time

and

may

continue

to

affect

adversely

the

value

and

liquidity

of each

Fund's

investments.

As

a

result,

current

performance

may

be

lower

or

higher

than

the

performance

data

quoted.

Refer

to

blackrock.com 

to

obtain

performance

data

current

to

the

most

recent

month-end.

Performance

results

do

not

reflect

the

deduction

of

taxes

that

a

shareholder

would

pay

on

Fund

distributions

or

the

redemption

of

Fund

shares.

Figures

shown

in

the

performance

table(s) assume

reinvestment

of

all

distributions,

if

any,

at

net

asset

value

("NAV")

on

the

ex-dividend

date

or

payable

date,

as

applicable.

Investment

return

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Distributions

paid

to

each

class

of

shares

will

vary

because

of

the

different

levels

of

service,

distribution

and

transfer

agency

fees

applicable

to

each

class,

which

are

deducted

from

the

income

available

to

be

paid

to

shareholders. 

BlackRock

Advisors,

LLC

(the

"Manager”),

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(s)

and/or

reimbursement(s),

each

Fund's

performance

would

have

been

lower.

With

respect

to

each

Fund's

voluntary

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

waive

and/or

reimburse

or

to

continue

waiving

and/or

reimbursing

its

fees

and

such

voluntary

waiver(s)

may

be

reduced

or

discontinued

at

any

time. With

respect

to

each

Fund's

contractual

waiver(s),

if

any,

the

Manager

is

under

no

obligation

to

continue

waiving

and/or

reimbursing

its

fees

after

the

applicable

termination

date

of

such agreement.

See

the

Notes

to

Financial

Statements

for

additional

information

on

waivers

and/or

reimbursements. 

The

standardized

30-day

yield

includes

the

effects

of

any

waivers

and/or

reimbursements.

The

unsubsidized

30-day

yield

excludes

the

effects

of

any

waivers

and/or

reimbursements. 

Disclosure

of

Expenses

2022

BlackRock

Annual

Report

to

Shareholdetrs

14

Shareholders

of

each

Fund

may

incur

the

following

charges:

(a)

transactional

expenses;

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

(which are

based

on

a

hypothetical

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

through

the

end

of

the

period) 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.

Annualized

expense

ratios

reflect

contractual

and

voluntary

fee

waivers,

if

any.

In

order

to

estimate

the

expenses

a

shareholder

paid

during

the

period

covered

by

this

report,

shareholders

can

divide

their

account

value

by

$1,000

and

then

multiply

the

result

by

the

number

corresponding

to

their

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.

Pursuant

to

Rule

18f-4

under

the

1940

Act,

among

other

things,

the

Funds

must

either

use

derivative

financial

instruments

with

embedded

leverage

in

a

limited

manner

or

comply

with

an

outer

limit

on

fund

leverage

risk

based

on

value-at-risk. 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.

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

15

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Shares

Shares

Value

Common

Stocks

Chemicals

—

0.2%

Diversey

Holdings

Ltd.

(a)

..............

4,106

$

19,955

Element

Solutions,

Inc.

...............

2,979

48,468

68,423

IT

Services

—

0.0%

(a)

Block,

Inc.,

Class

A

.................

259

14,243

Twilio,

Inc.,

Class

A

.................

87

6,015

20,258

Life

Sciences

Tools

&

Services

—

0.2%

Syneos

Health,

Inc.

(a)

................

1,318

62,144

Media

—

0.0%

Clear

Channel

Outdoor

Holdings,

Inc.

(a)

....

14,837

20,327

Oil,

Gas

&

Consumable

Fuels

—

0.1%

Occidental

Petroleum

Corp.

(b)

...........

910

55,919

Road

&

Rail

—

0.1%

Uber

Technologies,

Inc.

(a)

.............

939

24,883

Total

Common

Stocks

—

0.6%

(Cost:

$388,325)

................................

251,954

Par

(000)

Par

(000)

Corporate

Bonds

Aerospace

&

Defense

—

2.8%

Bombardier,

Inc.

(c)

7.13%,

06/15/26

.................

USD

239

219,204

7.88%,

04/15/27

.................

124

114,080

6.00%,

02/15/28

.................

59

49,364

Maxar

Technologies,

Inc.,

7.75%,

06/15/27

(c)

20

18,797

TransDigm,

Inc.

6.25%,

03/15/26

(c)

................

522

506,340

4.63%,

01/15/29

.................

49

39,446

4.88%,

05/01/29

.................

68

54,965

Triumph

Group,

Inc.,

8.88%,

06/01/24

(c)

...

129

127,438

1,129,634

Airlines

—

2.1%

(c)

American

Airlines,

Inc.

11.75%,

07/15/25

................

200

208,868

5.50%,

04/20/26

.................

9

8,453

5.75%,

04/20/29

.................

303

264,678

United

Airlines,

Inc.

4.38%,

04/15/26

.................

228

203,490

4.63%,

04/15/29

.................

185

153,076

838,565

Auto

Components

—

2.1%

Clarios

Global

LP

(c)

6.75%,

05/15/25

.................

93

91,069

6.25%,

05/15/26

.................

149

142,295

8.50%,

05/15/27

.................

531

506,834

Goodyear

Tire

&

Rubber

Co.

(The)

9.50%,

05/31/25

.................

123

127,613

5.63%,

04/30/33

.................

2

1,602

869,413

Automobiles

—

0.8%

Ford

Motor

Co.

3.25%,

02/12/32

.................

315

226,904

6.10%,

08/19/32

.................

53

46,725

4.75%,

01/15/43

.................

42

27,829

Security

Par

(000)

Par

(000)

Value

Automobiles

(continued)

Thor

Industries,

Inc.,

4.00%,

10/15/29

(c)

...

USD

26

$

19,540

320,998

Building

Products

—

0.7%

(c)

Advanced

Drainage

Systems,

Inc.

5.00%,

09/30/27

.................

2

1,839

6.38%,

06/15/30

.................

180

174,393

Camelot

Return

Merger

Sub,

Inc.,

8.75%,

08/01/28

.....................

48

39,562

Masonite

International

Corp.,

5.38%,

02/01/28

3

2,654

Standard

Industries,

Inc.

4.75%,

01/15/28

.................

5

4,224

4.38%,

07/15/30

.................

51

39,015

3.38%,

01/15/31

.................

37

26,022

287,709

Capital

Markets

—

0.4%

(c)

AG

TTMT

Escrow

Issuer

LLC,

8.63%,

09/30/27

33

31,020

Compass

Group

Diversified

Holdings

LLC,

5.25%,

04/15/29

................

47

36,882

MSCI,

Inc.

3.63%,

09/01/30

.................

52

42,785

3.63%,

11/01/31

.................

39

31,291

3.25%,

08/15/33

.................

15

11,584

153,562

Chemicals

—

3.2%

Ashland

LLC,

3.38%,

09/01/31

(c)

........

157

121,348

Avient

Corp.,

7.13%,

08/01/30

(c)

........

38

35,071

Axalta

Coating

Systems

LLC

(c)

4.75%,

06/15/27

.................

150

133,625

3.38%,

02/15/29

.................

350

274,383

Diamond

BC

BV,

4.63%,

10/01/29

(c)

......

80

55,666

Element

Solutions,

Inc.,

3.88%,

09/01/28

(c)

.

182

146,546

HB

Fuller

Co.,

4.00%,

02/15/27

........

47

42,486

Herens

Holdco

SARL,

4.75%,

05/15/28

(c)

..

200

160,000

Ingevity

Corp.,

3.88%,

11/01/28

(c)

.......

25

20,670

Kobe

U.S.

Midco

2,

Inc.,

9.25%,

11/01/26

(c)(d)

57

45,030

Minerals

Technologies,

Inc.,

5.00%,

07/01/28

(c)

77

67,015

WR

Grace

Holdings

LLC,

5.63%,

08/15/29

(c)

272

204,000

1,305,840

Commercial

Services

&

Supplies

—

2.8%

ADT

Security

Corp.

(The)

(c)

4.13%,

08/01/29

.................

3

2,490

4.88%,

07/15/32

.................

28

22,581

Allied

Universal

Holdco

LLC

(c)

6.63%,

07/15/26

.................

180

160,425

9.75%,

07/15/27

.................

160

131,517

4.63%,

06/01/28

.................

200

154,064

APi

Group

DE,

Inc.

(c)

4.13%,

07/15/29

.................

19

15,057

4.75%,

10/15/29

.................

24

19,888

APX

Group,

Inc.

(c)

6.75%,

02/15/27

.................

26

24,288

5.75%,

07/15/29

.................

80

63,246

Aramark

Services,

Inc.,

5.00%,

02/01/28

(c)

..

95

84,617

Covanta

Holding

Corp.,

5.00%,

09/01/30

..

60

47,025

Garda

World

Security

Corp.,

4.63%,

02/15/27

(c)

22

18,865

GFL

Environmental,

Inc.

(c)

4.00%,

08/01/28

.................

4

3,334

4.75%,

06/15/29

.................

16

13,480

4.38%,

08/15/29

.................

90

75,040

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(c)

....................

41

35,110

Madison

IAQ

LLC,

5.88%,

06/30/29

(c)

.....

90

62,690

Nielsen

Finance

LLC,

5.88%,

10/01/30

(c)

...

78

77,678

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

16

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Prime

Security

Services

Borrower

LLC

(c)

5.75%,

04/15/26

.................

USD

79

$

74,334

6.25%,

01/15/28

.................

50

42,669

1,128,398

Communications

Equipment

—

1.2%

Avaya,

Inc.,

6.13%,

09/15/28

(c)

.........

108

53,730

Ciena

Corp.,

4.00%,

01/31/30

(c)

........

25

20,875

CommScope

Technologies

LLC,

6.00%,

06/15/25

(c)

....................

113

100,395

CommScope,

Inc.

(c)

6.00%,

03/01/26

.................

41

37,750

8.25%,

03/01/27

.................

4

3,305

7.13%,

07/01/28

.................

13

10,035

4.75%,

09/01/29

.................

41

33,442

Nokia

OYJ

4.38%,

06/12/27

.................

45

40,556

6.63%,

05/15/39

.................

96

89,000

Viasat,

Inc.

(c)

5.63%,

09/15/25

.................

29

22,513

5.63%,

04/15/27

.................

25

20,799

6.50%,

07/15/28

.................

7

4,655

Viavi

Solutions,

Inc.,

3.75%,

10/01/29

(c)

...

91

72,807

509,862

Construction

&

Engineering

—

0.1%

(c)

Dycom

Industries,

Inc.,

4.50%,

04/15/29

...

24

20,224

MasTec,

Inc.,

4.50%,

08/15/28

.........

40

34,914

55,138

Consumer

Finance

—

1.6%

Ford

Motor

Credit

Co.

LLC

4.13%,

08/04/25

.................

200

181,510

4.39%,

01/08/26

.................

200

181,021

5.11%,

05/03/29

.................

200

173,540

OneMain

Finance

Corp.

7.13%,

03/15/26

.................

44

39,662

6.63%,

01/15/28

.................

20

17,160

4.00%,

09/15/30

.................

14

9,824

SLM

Corp.,

3.13%,

11/02/26

..........

41

33,939

636,656

Containers

&

Packaging

—

3.4%

ARD

Finance

SA,

6.50%,

06/30/27

(c)

.....

200

136,940

Ardagh

Metal

Packaging

Finance

USA

LLC

(c)

6.00%,

06/15/27

.................

200

188,341

4.00%,

09/01/29

.................

200

146,470

Ball

Corp.

2.88%,

08/15/30

.................

180

138,140

3.13%,

09/15/31

.................

221

166,579

Clydesdale

Acquisition

Holdings,

Inc.

(c)

6.63%,

04/15/29

.................

116

105,553

8.75%,

04/15/30

.................

76

62,854

Crown

Americas

LLC,

4.25%,

09/30/26

...

124

112,329

Graphic

Packaging

International

LLC,

3.50%,

03/15/28

(c)

....................

98

83,332

Sealed

Air

Corp.,

4.00%,

12/01/27

(c)

.....

70

60,575

Trivium

Packaging

Finance

BV,

8.50%,

08/15/27

(c)(e)

...................

228

201,281

1,402,394

Distributors

—

0.1%

(c)

American

Builders

&

Contractors

Supply

Co.,

Inc.,

3.88%,

11/15/29

.............

20

15,666

Resideo

Funding,

Inc.,

4.00%,

09/01/29

...

8

6,448

22,114

Security

Par

(000)

Par

(000)

Value

Diversified

Consumer

Services

—

0.4%

Sotheby's,

5.88%,

06/01/29

(c)

..........

USD

200

$

165,224

Diversified

Financial

Services

—

0.5%

(c)

MPH

Acquisition

Holdings

LLC,

5.50%,

09/01/28

.....................

53

43,748

Sabre

GLBL,

Inc.

9.25%,

04/15/25

.................

32

30,637

7.38%,

09/01/25

.................

72

64,486

Shift4

Payments

LLC,

4.63%,

11/01/26

....

63

57,448

196,319

Diversified

Telecommunication

Services

—

7.1%

Altice

France

SA,

5.50%,

10/15/29

(c)

.....

200

150,477

CCO

Holdings

LLC

6.38%,

09/01/29

(c)

................

168

154,241

4.75%,

03/01/30

(c)

................

33

26,771

4.25%,

02/01/31

(c)

................

25

19,176

4.75%,

02/01/32

(c)

................

86

66,975

4.50%,

05/01/32

.................

11

8,390

4.50%,

06/01/33

(c)

................

25

18,469

4.25%,

01/15/34

(c)

................

103

73,725

Consolidated

Communications,

Inc.,

6.50%,

10/01/28

(c)

....................

58

43,355

Frontier

Communications

Holdings

LLC

(c)

5.88%,

10/15/27

.................

65

58,255

5.00%,

05/01/28

.................

30

25,746

6.75%,

05/01/29

.................

108

89,100

6.00%,

01/15/30

.................

28

21,998

8.75%,

05/15/30

.................

60

60,038

Iliad

Holding

SASU

(c)

6.50%,

10/15/26

.................

200

174,880

7.00%,

10/15/28

.................

294

251,876

Level

3

Financing,

Inc.

(c)

3.40%,

03/01/27

.................

12

10,050

4.63%,

09/15/27

.................

32

26,482

4.25%,

07/01/28

.................

158

123,242

3.63%,

01/15/29

.................

21

15,548

3.75%,

07/15/29

.................

130

95,225

Lumen

Technologies,

Inc.

(c)

5.13%,

12/15/26

.................

101

86,902

4.00%,

02/15/27

.................

39

32,751

4.50%,

01/15/29

.................

16

11,240

5.38%,

06/15/29

.................

232

172,414

Sprint

Capital

Corp.

6.88%,

11/15/28

.................

223

229,132

8.75%,

03/15/32

.................

193

223,639

Switch

Ltd.

(c)

3.75%,

09/15/28

.................

49

48,694

4.13%,

06/15/29

.................

118

116,871

Telecom

Italia

Capital

SA

6.38%,

11/15/33

.................

60

46,646

6.00%,

09/30/34

.................

71

52,910

Zayo

Group

Holdings,

Inc.

(c)

4.00%,

03/01/27

.................

133

106,726

6.13%,

03/01/28

.................

402

282,034

2,923,978

Electric

Utilities

—

2.2%

NextEra

Energy

Operating

Partners

LP,

4.25%,

09/15/24

(c)

....................

233

222,515

NRG

Energy,

Inc.

5.75%,

01/15/28

.................

8

7,383

5.25%,

06/15/29

(c)

................

6

5,250

3.63%,

02/15/31

(c)

................

75

58,500

3.88%,

02/15/32

(c)

................

27

21,061

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

17

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Electric

Utilities

(continued)

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(c)

....................

USD

674

$

584,325

899,034

Electrical

Equipment

—

0.2%

Vertiv

Group

Corp.,

4.13%,

11/15/28

(c)

....

100

80,500

Electronic

Equipment,

Instruments

&

Components

—

0.3%

Sensata

Technologies,

Inc.,

4.38%,

02/15/30

(c)

122

101,932

Entertainment

—

1.1%

(c)

AMC

Entertainment

Holdings,

Inc.,

7.50%,

02/15/29

.....................

10

7,725

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

.....................

124

92,380

Live

Nation

Entertainment,

Inc.

6.50%,

05/15/27

.................

140

134,715

4.75%,

10/15/27

.................

44

38,200

3.75%,

01/15/28

.................

37

31,358

Playtika

Holding

Corp.,

4.25%,

03/15/29

...

64

51,183

WMG

Acquisition

Corp.,

3.88%,

07/15/30

..

99

81,107

436,668

Equity

Real

Estate

Investment

Trusts

(REITs)

—

1.2%

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(c)

....................

43

35,257

CTR

Partnership

LP,

3.88%,

06/30/28

(c)

...

6

4,935

HAT

Holdings

I

LLC,

3.38%,

06/15/26

(c)

...

106

85,065

Iron

Mountain

Information

Management

Services,

Inc.,

5.00%,

07/15/32

(c)

......

55

42,575

Iron

Mountain,

Inc.

(c)

5.25%,

07/15/30

.................

6

4,965

5.63%,

07/15/32

.................

37

29,600

SBA

Communications

Corp.

3.88%,

02/15/27

.................

175

155,209

3.13%,

02/01/29

.................

70

56,299

Uniti

Group

LP

(c)

4.75%,

04/15/28

.................

49

38,709

6.50%,

02/15/29

.................

63

42,223

494,837

Food

&

Staples

Retailing

—

0.7%

(c)

Albertsons

Cos.,

Inc.

3.25%,

03/15/26

.................

40

35,133

4.88%,

02/15/30

.................

93

78,679

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

46

42,072

US

Foods,

Inc.

6.25%,

04/15/25

.................

78

76,619

4.75%,

02/15/29

.................

47

40,232

4.63%,

06/01/30

.................

5

4,138

276,873

Food

Products

—

2.0%

Chobani

LLC

(c)

7.50%,

04/15/25

.................

79

72,271

4.63%,

11/15/28

.................

109

92,709

Darling

Ingredients,

Inc.,

6.00%,

06/15/30

(c)

.

162

154,174

Kraft

Heinz

Foods

Co.,

5.50%,

06/01/50

...

177

159,225

Lamb

Weston

Holdings,

Inc.

(c)

4.88%,

05/15/28

.................

180

163,283

4.13%,

01/31/30

.................

131

110,857

4.38%,

01/31/32

.................

94

77,668

830,187

Gas

Utilities

—

0.0%

Suburban

Propane

Partners

LP,

5.00%,

06/01/31

(c)

....................

16

13,133

Security

Par

(000)

Par

(000)

Value

Health

Care

Equipment

&

Supplies

—

1.9%

Avantor

Funding,

Inc.

(c)

4.63%,

07/15/28

.................

USD

124

$

110,353

3.88%,

11/01/29

.................

43

34,925

Embecta

Corp.,

6.75%,

02/15/30

(c)

......

36

33,236

Garden

Spinco

Corp.,

8.63%,

07/20/30

(c)

...

46

47,524

Hologic,

Inc.,

3.25%,

02/15/29

(c)

........

221

180,731

Medline

Borrower

LP

(c)

3.88%,

04/01/29

.................

13

10,422

5.25%,

10/01/29

.................

263

198,565

Teleflex,

Inc.

4.63%,

11/15/27

.................

3

2,702

4.25%,

06/01/28

(c)

................

183

159,168

777,626

Health

Care

Providers

&

Services

—

4.1%

Acadia

Healthcare

Co.,

Inc.,

5.50%,

07/01/28

(c)

26

23,726

AdaptHealth

LLC,

6.13%,

08/01/28

(c)

.....

45

40,307

AHP

Health

Partners,

Inc.,

5.75%,

07/15/29

(c)

115

89,125

Cano

Health

LLC,

6.25%,

10/01/28

(c)

.....

27

25,504

Centene

Corp.

2.45%,

07/15/28

.................

73

59,438

3.00%,

10/15/30

.................

263

208,280

2.50%,

03/01/31

.................

88

66,333

2.63%,

08/01/31

.................

89

67,077

Community

Health

Systems,

Inc.

(c)

6.00%,

01/15/29

.................

147

108,043

5.25%,

05/15/30

.................

15

10,444

Encompass

Health

Corp.

4.50%,

02/01/28

.................

109

93,358

4.75%,

02/01/30

.................

9

7,404

4.63%,

04/01/31

.................

138

109,055

HCA,

Inc.,

4.63%,

03/15/52

(c)

..........

50

37,555

HealthEquity,

Inc.,

4.50%,

10/01/29

(c)

.....

128

108,127

LifePoint

Health,

Inc.,

5.38%,

01/15/29

(c)

...

66

46,016

Molina

Healthcare,

Inc.

(c)

4.38%,

06/15/28

.................

24

21,660

3.88%,

11/15/30

.................

10

8,393

3.88%,

05/15/32

.................

18

14,744

Option

Care

Health,

Inc.,

4.38%,

10/31/29

(c)

.

56

47,320

Owens

&

Minor,

Inc.,

6.63%,

04/01/30

(c)

...

8

7,040

Pediatrix

Medical

Group,

Inc.,

5.38%,

02/15/30

(c)

....................

118

97,793

Surgery

Center

Holdings,

Inc.

(c)

6.75%,

07/01/25

.................

111

102,580

10.00%,

04/15/27

................

130

126,424

Tenet

Healthcare

Corp.

(c)

4.88%,

01/01/26

.................

51

47,393

6.25%,

02/01/27

.................

25

23,329

5.13%,

11/01/27

.................

25

22,432

6.13%,

10/01/28

.................

35

30,663

4.25%,

06/01/29

.................

20

16,565

6.13%,

06/15/30

.................

5

4,580

1,670,708

Hotels,

Restaurants

&

Leisure

—

4.9%

1011778

BC

ULC

(c)

3.88%,

01/15/28

.................

20

17,404

4.38%,

01/15/28

.................

82

71,053

4.00%,

10/15/30

.................

20

15,752

Boyne

USA,

Inc.,

4.75%,

05/15/29

(c)

.....

110

92,151

Caesars

Entertainment,

Inc.

(c)

6.25%,

07/01/25

.................

163

157,091

8.13%,

07/01/27

.................

241

230,176

4.63%,

10/15/29

.................

159

121,489

Caesars

Resort

Collection

LLC,

5.75%,

07/01/25

(c)

....................

92

88,771

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

18

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

(continued)

CDI

Escrow

Issuer,

Inc.,

5.75%,

04/01/30

(c)

.

USD

144

$

125,757

Cedar

Fair

LP,

5.50%,

05/01/25

(c)

.......

95

91,383

Churchill

Downs,

Inc.,

4.75%,

01/15/28

(c)

...

10

8,651

Fertitta

Entertainment

LLC

(c)

4.63%,

01/15/29

.................

23

19,033

6.75%,

01/15/30

.................

7

5,316

Hilton

Domestic

Operating

Co.,

Inc.

5.75%,

05/01/28

(c)

................

52

48,620

3.75%,

05/01/29

(c)

................

66

54,502

4.88%,

01/15/30

.................

111

96,570

4.00%,

05/01/31

(c)

................

55

44,458

3.63%,

02/15/32

(c)

................

18

13,786

MajorDrive

Holdings

IV

LLC,

6.38%,

06/01/29

(c)

67

46,193

Merlin

Entertainments

Ltd.,

5.75%,

06/15/26

(c)

200

186,169

MGM

Resorts

International,

5.75%,

06/15/25

90

86,010

Midwest

Gaming

Borrower

LLC,

4.88%,

05/01/29

(c)

....................

53

43,660

Scientific

Games

International,

Inc.,

7.25%,

11/15/29

(c)

....................

44

40,951

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

(c)

33

32,986

Vail

Resorts,

Inc.,

6.25%,

05/15/25

(c)

.....

93

91,737

Wyndham

Hotels

&

Resorts,

Inc.,

4.38%,

08/15/28

(c)

....................

71

62,411

Wynn

Resorts

Finance

LLC,

5.13%,

10/01/29

(c)

65

52,533

Yum!

Brands,

Inc.

4.75%,

01/15/30

(c)

................

85

74,282

5.38%,

04/01/32

.................

6

5,320

2,024,215

Household

Durables

—

0.8%

Ashton

Woods

USA

LLC,

4.63%,

08/01/29

(c)

25

18,151

Brookfield

Residential

Properties,

Inc.,

5.00%,

06/15/29

(c)

....................

97

71,806

CD&R

Smokey

Buyer,

Inc.,

6.75%,

07/15/25

(c)

68

61,637

KB

Home,

7.25%,

07/15/30

...........

15

13,613

SWF

Escrow

Issuer

Corp.,

6.50%,

10/01/29

(c)

71

42,068

Taylor

Morrison

Communities,

Inc.,

5.88%,

06/15/27

(c)

....................

66

61,462

Tempur

Sealy

International,

Inc.

(c)

4.00%,

04/15/29

.................

19

14,972

3.88%,

10/15/31

.................

47

34,428

TRI

Pointe

Homes,

Inc.,

5.25%,

06/01/27

..

22

19,023

337,160

Household

Products

—

0.2%

(c)

Energizer

Holdings,

Inc.

6.50%,

12/31/27

.................

28

24,855

4.75%,

06/15/28

.................

12

9,508

Spectrum

Brands,

Inc.,

5.00%,

10/01/29

...

42

33,410

67,773

Independent

Power

and

Renewable

Electricity

Producers

—

1.8%

Clearway

Energy

Operating

LLC

(c)

4.75%,

03/15/28

.................

730

649,992

3.75%,

01/15/32

.................

86

66,670

716,662

Insurance

—

2.8%

(c)

Alliant

Holdings

Intermediate

LLC

4.25%,

10/15/27

.................

157

134,106

6.75%,

10/15/27

.................

317

273,187

5.88%,

11/01/29

.................

282

229,047

AmWINS

Group,

Inc.,

4.88%,

06/30/29

....

21

17,431

GTCR

AP

Finance,

Inc.,

8.00%,

05/15/27

..

24

22,079

HUB

International

Ltd.,

7.00%,

05/01/26

...

113

107,171

NFP

Corp.

4.88%,

08/15/28

.................

120

102,398

6.88%,

08/15/28

.................

294

229,320

Security

Par

(000)

Par

(000)

Value

Insurance

(continued)

7.50%,

10/01/30

.................

USD

24

$

22,773

Ryan

Specialty

Group

LLC,

4.38%,

02/01/30

32

27,140

1,164,652

Interactive

Media

&

Services

—

0.2%

Twitter,

Inc.

(c)

3.88%,

12/15/27

.................

55

51,575

5.00%,

03/01/30

.................

39

37,374

88,949

Internet

&

Direct

Marketing

Retail

—

0.3%

(c)

ANGI

Group

LLC,

3.88%,

08/15/28

......

49

34,560

Go

Daddy

Operating

Co.

LLC,

3.50%,

03/01/29

77

62,977

Match

Group

Holdings

II

LLC,

3.63%,

10/01/31

22

16,610

114,147

IT

Services

—

2.0%

Ahead

DB

Holdings

LLC,

6.63%,

05/01/28

(c)

.

57

48,586

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(c)

96

81,840

Block,

Inc.,

3.50%,

06/01/31

..........

322

249,652

Booz

Allen

Hamilton,

Inc.,

4.00%,

07/01/29

(c)

93

79,567

Gartner,

Inc.

(c)

4.50%,

07/01/28

.................

57

50,969

3.63%,

06/15/29

.................

38

31,635

3.75%,

10/01/30

.................

45

36,839

Northwest

Fiber

LLC

(c)

4.75%,

04/30/27

.................

60

52,200

6.00%,

02/15/28

.................

75

58,137

Twilio,

Inc.,

3.88%,

03/15/31

..........

170

133,445

822,870

Leisure

Products

—

0.3%

Mattel,

Inc.

6.20%,

10/01/40

.................

53

49,888

5.45%,

11/01/41

.................

62

51,943

101,831

Life

Sciences

Tools

&

Services

—

0.3%

(c)

Charles

River

Laboratories

International,

Inc.

4.25%,

05/01/28

.................

32

27,868

4.00%,

03/15/31

.................

19

15,322

Syneos

Health,

Inc.,

3.63%,

01/15/29

....

111

88,387

131,577

Machinery

—

0.7%

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

(c)

63

53,614

Terex

Corp.,

5.00%,

05/15/29

(c)

........

63

54,069

Titan

International,

Inc.,

7.00%,

04/30/28

..

23

20,868

TK

Elevator

US

Newco,

Inc.,

5.25%,

07/15/27

(c)

200

170,042

298,593

Media

—

5.6%

Altice

Financing

SA,

5.75%,

08/15/29

(c)

....

200

153,044

AMC

Networks,

Inc.,

4.25%,

02/15/29

....

39

28,835

Cable

One,

Inc.

1.13%,

03/15/28

(f)

................

147

105,840

4.00%,

11/15/30

(c)

................

218

169,693

Charter

Communications

Operating

LLC

5.25%,

04/01/53

.................

55

42,117

5.50%,

04/01/63

.................

55

41,553

Clear

Channel

Outdoor

Holdings,

Inc.

(c)

5.13%,

08/15/27

.................

160

135,158

7.75%,

04/15/28

.................

156

117,780

7.50%,

06/01/29

.................

165

119,625

CSC

Holdings

LLC,

4.13%,

12/01/30

(c)

....

200

149,440

Directv

Financing

LLC,

5.88%,

08/15/27

(c)

..

42

36,209

GCI

LLC,

4.75%,

10/15/28

(c)

..........

21

17,435

LCPR

Senior

Secured

Financing

DAC,

5.13%,

07/15/29

(c)

....................

200

150,613

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

19

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Media

(continued)

Liberty

Broadband

Corp.,

2.75%,

09/30/50

(c)(f)

USD

184

$

176,405

Outfront

Media

Capital

LLC,

5.00%,

08/15/27

(c)

15

13,103

Radiate

Holdco

LLC

(c)

4.50%,

09/15/26

.................

99

81,203

6.50%,

09/15/28

.................

196

136,710

Sinclair

Television

Group,

Inc.,

4.13%,

12/01/30

(c)

....................

65

48,913

Sirius

XM

Radio,

Inc.

(c)

3.13%,

09/01/26

.................

92

80,797

5.00%,

08/01/27

.................

11

10,092

5.50%,

07/01/29

.................

28

25,186

3.88%,

09/01/31

.................

37

28,691

Telenet

Finance

Luxembourg

Notes

SARL,

5.50%,

03/01/28

(c)

...............

200

173,454

Univision

Communications,

Inc.

(c)

6.63%,

06/01/27

.................

36

33,974

7.38%,

06/30/30

.................

48

45,806

Videotron

Ltd.,

3.63%,

06/15/29

(c)

.......

32

25,920

Ziggo

Bond

Co.

BV,

5.13%,

02/28/30

(c)

....

200

143,000

2,290,596

Metals

&

Mining

—

4.2%

(c)

Big

River

Steel

LLC,

6.63%,

01/31/29

....

707

650,708

Constellium

SE

5.63%,

06/15/28

.................

250

205,039

3.75%,

04/15/29

.................

250

182,520

FMG

Resources

August

2006

Pty.

Ltd.,

6.13%,

04/15/32

.....................

121

103,969

Novelis

Corp.

3.25%,

11/15/26

.................

380

317,198

4.75%,

01/30/30

.................

14

11,480

3.88%,

08/15/31

.................

346

258,088

1,729,002

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.,

4.38%,

01/15/27

(c)

....................

18

15,345

Multiline

Retail

—

0.2%

NMG

Holding

Co.,

Inc.,

7.13%,

04/01/26

(c)

..

75

68,914

Oil,

Gas

&

Consumable

Fuels

—

3.0%

Antero

Midstream

Partners

LP,

5.75%,

03/01/27

(c)

....................

140

129,481

EnLink

Midstream

Partners

LP

4.85%,

07/15/26

.................

23

21,123

5.60%,

04/01/44

.................

52

39,556

ITT

Holdings

LLC,

6.50%,

08/01/29

(c)

.....

98

76,026

New

Fortress

Energy,

Inc.

(c)

6.75%,

09/15/25

.................

113

107,034

6.50%,

09/30/26

.................

185

170,921

Occidental

Petroleum

Corp.

8.00%,

07/15/25

.................

2

2,120

5.88%,

09/01/25

.................

2

2,006

5.55%,

03/15/26

.................

228

228,260

8.88%,

07/15/30

.................

7

7,793

6.63%,

09/01/30

.................

85

86,275

7.50%,

05/01/31

.................

1

1,045

6.45%,

09/15/36

.................

4

4,000

6.20%,

03/15/40

.................

378

365,715

6.60%,

03/15/46

.................

2

2,060

1,243,415

Personal

Products

—

0.0%

Prestige

Brands,

Inc.,

3.75%,

04/01/31

(c)

...

25

19,423

Security

Par

(000)

Par

(000)

Value

Pharmaceuticals

—

0.6%

(c)

Catalent

Pharma

Solutions,

Inc.

3.13%,

02/15/29

.................

USD

80

$

61,700

3.50%,

04/01/30

.................

39

30,682

Organon

&

Co.,

5.13%,

04/30/31

.......

200

163,832

256,214

Professional

Services

—

0.7%

(c)

AMN

Healthcare,

Inc.

4.63%,

10/01/27

.................

25

22,427

4.00%,

04/15/29

.................

73

61,510

CoreLogic,

Inc.,

4.50%,

05/01/28

.......

48

32,640

Dun

&

Bradstreet

Corp.

(The),

5.00%,

12/15/29

89

73,425

Korn

Ferry,

4.63%,

12/15/27

..........

87

76,830

266,832

Real

Estate

Management

&

Development

—

0.7%

(c)

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

................

154

142,843

Howard

Hughes

Corp.

(The)

5.38%,

08/01/28

.................

65

53,950

4.38%,

02/01/31

.................

44

31,605

Realogy

Group

LLC,

5.75%,

01/15/29

....

93

67,076

295,474

Road

&

Rail

—

1.1%

(c)

Hertz

Corp.

(The)

4.63%,

12/01/26

.................

30

24,371

5.00%,

12/01/29

.................

24

17,850

NESCO

Holdings

II,

Inc.,

5.50%,

04/15/29

..

48

40,007

Uber

Technologies,

Inc.

7.50%,

09/15/27

.................

146

143,080

6.25%,

01/15/28

.................

11

10,230

4.50%,

08/15/29

.................

186

156,356

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

.....................

76

66,496

458,390

Semiconductors

&

Semiconductor

Equipment

—

0.9%

(c)

Entegris

Escrow

Corp.,

4.75%,

04/15/29

...

265

233,419

Entegris,

Inc.

4.38%,

04/15/28

.................

44

37,304

3.63%,

05/01/29

.................

20

15,827

Synaptics,

Inc.,

4.00%,

06/15/29

........

75

60,379

346,929

Software

—

6.3%

(c)

AthenaHealth

Group,

Inc.,

6.50%,

02/15/30

.

160

126,491

Boxer

Parent

Co.,

Inc.,

7.13%,

10/02/25

...

53

51,944

Camelot

Finance

SA,

4.50%,

11/01/26

....

24

21,715

Central

Parent,

Inc.,

7.25%,

06/15/29

.....

112

106,478

Change

Healthcare

Holdings

LLC,

5.75%,

03/01/25

.....................

42

41,746

Clarivate

Science

Holdings

Corp.

3.88%,

07/01/28

.................

352

290,330

4.88%,

07/01/29

.................

193

151,119

Condor

Merger

Sub,

Inc.,

7.38%,

02/15/30

.

239

195,398

Consensus

Cloud

Solutions,

Inc.

6.00%,

10/15/26

.................

17

14,980

6.50%,

10/15/28

.................

15

12,733

Elastic

NV,

4.13%,

07/15/29

..........

151

119,266

Fair

Isaac

Corp.,

4.00%,

06/15/28

.......

119

101,398

MicroStrategy,

Inc.,

6.13%,

06/15/28

.....

65

53,557

NCR

Corp.,

6.13%,

09/01/29

..........

45

38,746

NortonLifeLock,

Inc.

6.75%,

09/30/27

.................

68

65,248

7.13%,

09/30/30

.................

68

65,770

Open

Text

Corp.

3.88%,

02/15/28

.................

88

72,778

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

20

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Software

(continued)

3.88%,

12/01/29

.................

USD

106

$

81,644

Open

Text

Holdings,

Inc.,

4.13%,

02/15/30

.

28

22,361

Picard

Midco,

Inc.,

6.50%,

03/31/29

......

589

497,528

PTC,

Inc.

3.63%,

02/15/25

.................

49

45,645

4.00%,

02/15/28

.................

75

65,594

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

.

98

89,395

Veritas

US,

Inc.,

7.50%,

09/01/25

.......

82

62,799

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

244

199,089

2,593,752

Specialty

Retail

—

1.8%

(c)

Arko

Corp.,

5.13%,

11/15/29

..........

49

38,220

Asbury

Automotive

Group,

Inc.,

5.00%,

02/15/32

.....................

40

30,802

Carvana

Co.

5.50%,

04/15/27

.................

18

9,810

4.88%,

09/01/29

.................

29

14,138

Group

1

Automotive,

Inc.,

4.00%,

08/15/28

.

48

38,650

GYP

Holdings

III

Corp.,

4.63%,

05/01/29

...

98

74,544

LBM

Acquisition

LLC,

6.25%,

01/15/29

....

23

15,582

Lithia

Motors,

Inc.,

3.88%,

06/01/29

......

43

34,508

PetSmart,

Inc.,

7.75%,

02/15/29

........

250

223,485

Sonic

Automotive,

Inc.,

4.63%,

11/15/29

...

18

14,130

Specialty

Building

Products

Holdings

LLC,

6.38%,

09/30/26

................

14

11,584

SRS

Distribution,

Inc.

4.63%,

07/01/28

.................

100

85,899

6.13%,

07/01/29

.................

90

72,279

6.00%,

12/01/29

.................

103

82,145

745,776

Technology

Hardware,

Storage

&

Peripherals

—

0.0%

Xerox

Corp.,

4.80%,

03/01/35

.........

2

1,303

Textiles,

Apparel

&

Luxury

Goods

—

0.6%

(c)

Crocs,

Inc.,

4.13%,

08/15/31

..........

61

46,432

Kontoor

Brands,

Inc.,

4.13%,

11/15/29

....

30

23,902

Levi

Strauss

&

Co.,

3.50%,

03/01/31

.....

132

102,960

William

Carter

Co.

(The),

5.63%,

03/15/27

..

94

87,884

261,178

Thrifts

&

Mortgage

Finance

—

0.5%

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(c)

...

65

62,120

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

92

82,191

Nationstar

Mortgage

Holdings,

Inc.

(c)

6.00%,

01/15/27

.................

27

23,051

5.75%,

11/15/31

.................

23

16,868

184,230

Trading

Companies

&

Distributors

—

1.3%

Beacon

Roofing

Supply,

Inc.,

4.13%,

05/15/29

(c)

25

20,248

Boise

Cascade

Co.,

4.88%,

07/01/30

(c)

....

61

50,672

Foundation

Building

Materials,

Inc.,

6.00%,

03/01/29

(c)

....................

30

21,895

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(c)

....

62

55,800

Imola

Merger

Corp.,

4.75%,

05/15/29

(c)

....

107

90,270

United

Rentals

North

America,

Inc.,

5.25%,

01/15/30

.....................

66

59,732

WESCO

Distribution,

Inc.,

7.25%,

06/15/28

(c)

226

221,356

519,973

Security

Par

(000)

Par

(000)

Value

Wireless

Telecommunication

Services

—

1.3%

(c)

Connect

Finco

SARL,

6.75%,

10/01/26

....

USD

333

$

291,226

Vmed

O2

UK

Financing

I

plc,

4.75%,

07/15/31

296

228,363

519,589

Total

Corporate

Bonds

—

86.1%

(Cost:

$41,879,501)

..............................

35,212,066

Floating

Rate

Loan

Interests

Airlines

—

0.0%

(d)

AAdvantage

Loyalty

IP

Ltd.,

Term

Loan,

(LIBOR

USD

3

Month

+

4.75%),

7.46%

,

 04/20/28

5

5,222

Mileage

Plus

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

5.25%),

8.78%

,

 06/21/27

8

7,754

12,976

Auto

Components

—

0.4%

Clarios

Global

LP,

1st

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 04/30/26

(d)

188

177,326

Chemicals

—

0.1%

WR

Grace

Holdings

LLC,

Term

Loan,

(LIBOR

USD

3

Month

+

3.75%),

7.44%

,

 09/22/28

(d)

32

29,451

Commercial

Services

&

Supplies

—

0.4%

PECF

USS

Intermediate

Holding

III

Corp.,

Term

Loan,

(LIBOR

USD

1

Month

+

4.25%),

7.37%

,

 12/15/28

(d)

................

173

147,318

Communications

Equipment

—

0.0%

Viasat,

Inc.,

Term

Loan,

(SOFR

1

Month

+

4.50%),

7.65%

,

 03/02/29

(d)

..........

24

21,043

Containers

&

Packaging

—

0.1%

Clydesdale

Acquisition

Holdings,

Inc.,

1st

Lien

Term

Loan

B,

(SOFR

1

Month

+

4.18%),

7.31%

,

 04/13/29

(d)

................

27

25,365

Diversified

Consumer

Services

—

0.1%

Ascend

Learning

LLC,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.75%),

8.87%

,

 12/10/29

(d)

................

29

25,103

Diversified

Telecommunication

Services

—

2.0%

(d)

Altice

France

SA,

Term

Loan

B13,

(LIBOR

USD

3

Month

+

4.00%),

6.91%

,

 08/14/26

(g)

...

188

170,131

Cablevision

Lightpath

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.07%

,

 11/30/27

.

99

94,600

Frontier

Communications

Holdings

LLC,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.75%),

7.44%

,

 05/01/28

.................

197

183,175

Radiate

Holdco

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 09/25/26

....

202

186,856

Zayo

Group

Holdings,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.00%),

6.12%

,

 03/09/27

217

180,681

815,443

Food

Products

—

0.0%

Chobani

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 10/25/27

(d)

....

7

5,980

Health

Care

Technology

—

0.8%

Verscend

Holding

Corp.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

4.00%),

7.12%

,

 08/27/25

(d)

338

327,036

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

21

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Hotels,

Restaurants

&

Leisure

—

0.6%

(d)

Caesars

Resort

Collection

LLC,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 07/21/25

.................

USD

85

$

83,350

Fertitta

Entertainment

LLC,

Term

Loan

B,

(SOFR

1

Month

+

4.00%),

7.03%

,

 01/27/29

173

160,058

243,408

Household

Durables

—

0.1%

SWF

Holdings

I

Corp.,

1st

Lien

Term

Loan,

(LIBOR

USD

3

Month

+

4.00%),

7.60%

,

 10/06/28

(d)

................

73

56,510

Insurance

—

0.9%

(d)

Alliant

Holdings

Intermediate

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.37%

,

 05/09/25

.................

100

95,384

Alliant

Holdings

Intermediate

LLC,

Term

Loan

B4,

(LIBOR

USD

1

Month

+

3.50%),

6.49%

,

 11/05/27

.................

23

21,676

AssuredPartners,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 02/12/27

....

99

93,319

Hub

International

Ltd.,

Term

Loan

B3,

(LIBOR

USD

3

Month

+

3.25%),

5.98%

,

 04/25/25

148

142,469

352,848

Media

—

1.2%

(d)

Clear

Channel

Outdoor

Holdings,

Inc.,

Term

Loan

B,

(LIBOR

USD

3

Month

+

3.50%),

6.31%

,

 08/21/26

.................

343

305,306

DirectTV

Financing

LLC,

Term

Loan,

(LIBOR

USD

1

Month

+

5.00%),

8.12%

,

 08/02/27

182

168,956

474,262

Professional

Services

—

0.3%

(d)

Dun

&

Bradstreet

Corp.

(The),

Term

Loan,

(LIBOR

USD

1

Month

+

3.25%),

6.33%

,

 02/06/26

.................

89

85,983

Dun

&

Bradstreet

Corp.

(The),

Term

Loan

B2,

(SOFR

1

Month

+

3.25%),

6.28%

,

 01/18/29

43

41,192

127,175

Road

&

Rail

—

0.2%

Uber

Technologies,

Inc.,

Term

Loan,

(LIBOR

USD

3

Month

+

3.50%),

6.57%

,

 02/25/27

(d)

99

96,009

Software

—

2.3%

(d)

Athenahealth

Group,

Inc.,

Delayed

Draw

Term

Loan,

02/15/29

(h)

.................

50

44,464

Athenahealth

Group,

Inc.,

Term

Loan,

(SOFR

1

Month

+

3.50%),

6.58%

,

 02/15/29

.....

293

261,683

Banff

Guarantor,

Inc.,

2nd

Lien

Term

Loan,

(LIBOR

USD

1

Month

+

5.50%),

8.62%

,

 02/27/26

.................

96

88,800

Boxer

Parent

Co.,

Inc.,

Term

Loan,

(LIBOR

USD

1

Month

+

3.75%),

6.87%

,

 10/02/25

158

149,614

Central

Parent,

Inc.,

1st

Lien

Term

Loan,

(SOFR

3

Month

+

4.50%),

8.11%

,

 07/06/29

36

34,613

Security

Par

(000)

Par

(000)

Value

Software

(continued)

McAfee

Corp.,

Term

Loan

B1,

(SOFR

1

Month

+

3.75%),

6.87%

,

 03/01/29

..........

USD

91

$

83,107

Sabre

GLBL,

Inc.,

Term

Loan

B1,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/17/27

....

9

7,846

Sabre

GLBL,

Inc.,

Term

Loan

B2,

(LIBOR

USD

1

Month

+

3.50%),

6.62%

,

 12/17/27

....

14

12,509

SS&C

Technologies

Holdings,

Inc.,

Term

Loan

B5,

(LIBOR

USD

1

Month

+

1.75%),

4.87%

,

 04/16/25

.................

98

95,378

TIBCO

Software,

Inc.,

Term

Loan

B,

(SOFR

1

Month

+

4.50%),

8.15%

,

 03/30/29

.....

182

163,085

941,099

Textiles,

Apparel

&

Luxury

Goods

—

0.3%

Crocs,

Inc.,

Term

Loan,

(SOFR

6

Month

+

3.50%),

7.20%

-

7.73%

,

 02/20/29

(d)

.....

129

120,946

Trading

Companies

&

Distributors

—

0.3%

SRS

Distribution,

Inc.,

Term

Loan

(d)

(SOFR

3

Month

+

3.50%),

6.18%, 06/02/28

37

33,625

(LIBOR

USD

3

Month

+

3.50%),

6.31%, 06/02/28

...............

100

92,074

125,699

Total

Floating

Rate

Loan

Interests

—

10.1%

(Cost:

$4,444,960)

..............................

4,124,997

Preferred

Securities

Capital

Trusts

—

0.1%

Independent

Power

and

Renewable

Electricity

Producers

—

0.1%

Vistra

Corp.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.74%),

7.00%

(c)(d)(i)

.....................

57

49,762

Total

Preferred

Securities

—

0.1%

(Cost:

$57,000)

................................

49,762

Total

Long-Term

Investments

—

96.9%

(Cost:

$46,769,786)

..............................

39,638,779

Shares

Shares

Short-Term

Securities

Money

Market

Funds

—

2.4%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(j)(k)

..................

1,002,589

1,002,589

Total

Short-Term

Securities

—

2.4%

(Cost:

$1,002,589)

..............................

1,002,589

Total

Investments

—

99.3%

(Cost:

$47,772,375

)

..............................

40,641,368

Other

Assets

Less

Liabilities

—

0.7%

...................

281,139

Net

Assets

—

100.0%

..............................

$

40,922,507

(a)

Non-income

producing

security.

(b)

All

or

a

portion

of

the

security

has

been

pledged

and/or

segregated

as

collateral

in

connection

with

outstanding

exchange-traded

options

written.

(c)

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.

(d)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(e)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(f)

Convertible

security.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

22

Schedule

of

Investments

(continued)

September

30,

2022

(g)

Security

is

valued

using

significant

unobservable

inputs

and

is

classified

as

Level

3

in

the

fair

value

hierarchy.

(h)

Represents

an

unsettled

loan

commitment

at

period

end.

Certain

details

associated

with

this

purchase

are

not

known

prior

to

the

settlement

date,

including

coupon

rate.

(i)

Perpetual

security

with

no

stated

maturity

date.

(j)

Annualized

7-day

yield

as

of

period

end.

(k)

Affiliate

of

the

Fund.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

year

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

09/30/21

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

3,166,439

$

—

$

(2,163,850)

(a)

$

—

$

—

$

1,002,589

1,002,589

$

6,113

$

—

—

—

(a)

Represents

net

amount

purchased

(sold).

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

BlackRock

Sustainable

High

Yield

Bond

Fund

Schedules

of

Investments

23

Schedule

of

Investments

(continued)

September

30,

2022

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

Outstanding

as

of

Period

End

Futures

Contracts

Description

Number

of

Contracts

Expiration

Date

Notional

Amount

(000)

Value/

Unrealized

Appreciation

(Depreciation)

Short

Contracts

U.S.

Treasury

10

Year

Note

...................................................

2

12/20/22

$

224

$

10,904

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)

.....

$

—

$

—

$

—

$

—

$

10,904

$

—

$

10,904

(a)

Net

cumulative

unrealized

appreciation

(depreciation)

on

futures

contracts,

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

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

22,977

$

—

$

16,535

$

—

$

39,512

Options

purchased

(a)

....................

—

—

3,952

—

—

—

3,952

Options

written

........................

—

—

784

—

—

—

784

$

—

$

—

$

27,713

$

—

$

16,535

$

—

$

44,248

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

10,904

$

—

$

10,904

(a)

Options

purchased

are

included

in

net

realized

gain

(loss)

from

investments

—

unaffiliated.

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

short

.................................................................................

$

176,578

Options

Average

value

of

option

contracts

purchased

................................................................................

$

1,110

Average

value

of

option

contracts

written

...................................................................................

$

337

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

High

Yield

Bond

Fund

24

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Common

Stocks

.........................................

$

251,954

$

—

$

—

$

251,954

Corporate

Bonds

........................................

—

35,212,066

—

35,212,066

Floating

Rate

Loan

Interests

Airlines

..............................................

—

12,976

—

12,976

Auto

Components

......................................

—

177,326

—

177,326

Chemicals

............................................

—

29,451

—

29,451

Commercial

Services

&

Supplies

.............................

—

147,318

—

147,318

Communications

Equipment

................................

—

21,043

—

21,043

Containers

&

Packaging

..................................

—

25,365

—

25,365

Diversified

Consumer

Services

..............................

—

25,103

—

25,103

Diversified

Telecommunication

Services

........................

—

645,312

170,131

815,443

Food

Products

.........................................

—

5,980

—

5,980

Health

Care

Technology

..................................

—

327,036

—

327,036

Hotels,

Restaurants

&

Leisure

..............................

—

243,408

—

243,408

Household

Durables

.....................................

—

56,510

—

56,510

Insurance

............................................

—

352,848

—

352,848

Media

...............................................

—

474,262

—

474,262

Professional

Services

....................................

—

127,175

—

127,175

Road

&

Rail

...........................................

—

96,009

—

96,009

Software

.............................................

—

941,099

—

941,099

Textiles,

Apparel

&

Luxury

Goods

............................

—

120,946

—

120,946

Trading

Companies

&

Distributors

............................

—

125,699

—

125,699

Preferred

Securities

.......................................

—

49,762

—

49,762

Short-Term

Securities

Money

Market

Funds

......................................

1,002,589

—

—

1,002,589

$

1,254,543

$

39,216,694

$

170,131

$

40,641,368

Derivative

Financial

Instruments

(a)

Assets

Interest

rate

contracts

.......................................

$

10,904

$

—

$

—

$

10,904

(a)

Derivative

financial

instruments

are

futures

contracts.

Futures

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument.

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

25

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

AGL

Core

CLO

4

Ltd.,

Series

2020-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/33

(a)(b)

...............

USD

250

$

242,425

AIG

CLO

LLC,

Series

2018-1A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.12%),

3.83%,

04/20/32

(a)(b)

....................

250

243,600

Anchorage

Capital

CLO

3-R

Ltd.,

Series

2014-3RA,

Class

A,

(LIBOR

USD

3

Month

+

1.05%),

3.84%,

01/28/31

(a)(b)

.........

249

244,456

Arbor

Realty

Commercial

Real

Estate

Notes

Ltd.,

Series

2022-FL2,

Class

A,

(1

Month

CME

Term

SOFR

+

1.85%),

4.70%,

05/15/37

(a)(b)

....................

100

97,846

Ares

LVI

CLO

Ltd.,

Series

2020-56A,

Class

AR,

(LIBOR

USD

3

Month

+

1.16%),

3.94%,

10/25/34

(a)(b)

....................

250

240,568

BA

Credit

Card

Trust,

Series

2022-A1,

Class

A1,

3.53%,

11/15/27

...............

59

57,231

Barings

CLO

Ltd.,

Series

2019-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/31

(a)(b)

....................

250

243,655

BDS

Ltd.,

Series

2021-FL10,

Class

A,

(LIBOR

USD

1

Month

+

1.35%),

4.34%,

12/16/36

(a)(b)

80

77,800

Beechwood

Park

CLO

Ltd.,

Series

2019-1A,

Class

A1R,

(3

Month

CME

Term

SOFR

+

1.30%),

3.78%,

01/17/35

(a)(b)

.........

250

238,615

BlueMountain

CLO

XXII

Ltd.,

Series

2018-22A,

Class

A1,

(LIBOR

USD

3

Month

+

1.08%),

3.59%,

07/15/31

(a)(b)

...............

250

242,724

BMW

Vehicle

Owner

Trust,

Series

2022-A,

Class

A3,

3.21%,

08/25/26

..........

207

201,435

Capital

One

Multi-Asset

Execution

Trust,

Series

2022-A2,

Class

A,

3.49%,

05/15/27

.....

39

37,812

CIFC

Funding

Ltd.,

Series

2021-5A,

Class

A,

(LIBOR

USD

3

Month

+

1.14%),

3.65%,

07/15/34

(a)(b)

....................

250

239,346

College

Avenue

Student

Loans

LLC,

Series

2021-C,

Class

A1,

(LIBOR

USD

1

Month

+

0.90%),

3.98%,

07/26/55

(a)(b)

.........

89

85,813

Ford

Credit

Auto

Owner

Trust,

Series

2022-B,

Class

A4,

3.93%,

08/15/27

..........

44

42,995

FS

Rialto

Issuer

LLC

(a)(b)

Series

2022-FL4,

Class

A,

(SOFR

30

Day

Average

+

1.90%),

4.18%,

01/19/39

..

100

97,670

Series

2022-FL5,

Class

A,

(1

Month

CME

Term

SOFR

+

2.30%),

5.32%,

06/19/37

100

98,257

Series

2022-FL6,

Class

A,

(1

Month

CME

Term

SOFR

+

2.58%),

4.58%,

08/17/37

100

98,964

GM

Financial

Consumer

Automobile

Receivables

Trust,

Series

2022-3,

Class

A3,

3.64%,

04/16/27

.................

154

150,609

GoodLeap

Sustainable

Home

Solutions

Trust

(b)

Series

2021-3CS,

Class

A,

2.10%,

05/20/48

168

137,599

Series

2021-5CS,

Class

A,

2.31%,

10/20/48

86

71,184

Series

2022-1GS,

Class

A,

2.70%,

01/20/49

47

39,215

Series

2022-2CS,

Class

A,

4.00%,

04/20/49

24

22,037

Series

2022-3CS,

Class

A,

4.95%,

07/20/49

57

54,810

Hyundai

Auto

Receivables

Trust,

Series

2022-

B,

Class

A3,

3.72%,

11/16/26

.........

55

53,942

Loanpal

Solar

Loan

Ltd.,

Series

2021-1GS,

Class

A,

2.29%,

01/20/48

(b)

..........

141

115,601

Madison

Park

Funding

XXXVII

Ltd.,

Series

2019-37A,

Class

AR,

(LIBOR

USD

3

Month

+

1.07%),

3.58%,

07/15/33

(a)(b)

........

250

242,144

Security

Par

(000)

Par

(000)

Value

Asset-Backed

Securities

(continued)

MF1

Ltd.,

Series

2022-FL8,

Class

A,

(SOFR

30

Day

Average

+

1.35%),

3.63%,

02/19/37

(a)(b)

USD

100

$

96,879

Mosaic

Solar

Loan

Trust

(b)

Series

2021-1A,

Class

A,

1.51%,

12/20/46

101

79,057

Series

2022-1A,

Class

A,

2.64%,

01/20/53

93

80,872

Mosaic

Solar

Loans

LLC,

Series

2017-2A,

Class

C,

2.00%,

06/22/43

(b)

..........

25

24,598

Navient

Private

Education

Refi

Loan

Trust

(b)

Series

2021-CA,

Class

A,

1.06%,

10/15/69

135

115,803

Series

2021-GA,

Class

A,

1.58%,

04/15/70

106

91,485

Series

2022-A,

Class

A,

2.23%,

07/15/70

.

138

121,963

Series

2022-BA,

Class

A,

4.16%,

10/15/70

121

116,589

Nelnet

Student

Loan

Trust,

Series

2021-DA,

Class

AFX,

1.63%,

04/20/62

(b)

........

118

106,481

Neuberger

Berman

Loan

Advisers

CLO

26

Ltd.,

Series

2017-26A,

Class

AR,

(LIBOR

USD

3

Month

+

0.92%),

3.66%,

10/18/30

(a)(b)

...

250

244,821

OneMain

Financial

Issuance

Trust,

Series

2022-S1,

Class

A,

4.13%,

05/14/35

(b)

...

120

113,980

Oportun

Issuance

Trust,

Series

2021-C,

Class

A,

2.18%,

10/08/31

(b)

..............

100

88,264

Palmer

Square

CLO

Ltd.,

Series

2013-2A,

Class

A1A3,

(LIBOR

USD

3

Month

+

1.00%),

3.74%,

10/17/31

(a)(b)

.........

250

243,118

PFS

Financing

Corp.,

Series

2022-D,

Class

A,

4.27%,

08/15/27

(b)

................

140

135,583

Prodigy

Finance

DAC,

Series

2021-1A,

Class

A,

(LIBOR

USD

1

Month

+

1.25%),

4.33%,

07/25/51

(a)(b)

....................

132

128,914

Romark

CLO

II

Ltd.,

Series

2018-2A,

Class

A1,

(LIBOR

USD

3

Month

+

1.18%),

3.96%,

07/25/31

(a)(b)

....................

250

243,386

SMB

Private

Education

Loan

Trust

(b)

Series

2022-B,

Class

A1B,

(SOFR

30

Day

Average

+

1.45%),

3.74%,

02/16/55

(a)

.

190

187,227

Series

2022-C,

Class

A1A,

4.48%,

05/16/50

100

95,838

Series

2022-C,

Class

A1B,

(SOFR

30

Day

Average

+

1.85%),

0.88%,

05/16/50

(a)

.

100

99,703

SoFi

Professional

Loan

Program

LLC

(b)

Series

2019-A,

Class

A2FX,

3.69%,

06/15/48

....................

178

172,727

Series

2019-B,

Class

A2FX,

3.09%,

08/17/48

....................

43

40,485

SoFi

Professional

Loan

Program

Trust

(b)

Series

2020-A,

Class

A2FX,

2.54%,

05/15/46

....................

73

68,300

Series

2021-B,

Class

AFX,

1.14%,

02/15/47

127

106,987

Sunnova

Sol

IV

Issuer

LLC,

Series

2022-A,

Class

A,

2.79%,

02/22/49

(b)

..........

95

84,047

Total

Asset-Backed

Securities

—

14.3%

(Cost:

$6,957,407)

..............................

6,605,460

Corporate

Bonds

Aerospace

&

Defense

—

0.2%

(b)

Bombardier,

Inc.,

7.13%,

06/15/26

......

18

16,509

Maxar

Technologies,

Inc.,

7.75%,

06/15/27

.

2

1,880

TransDigm,

Inc.

8.00%,

12/15/25

.................

9

9,128

6.25%,

03/15/26

.................

65

63,050

Triumph

Group,

Inc.,

8.88%,

06/01/24

....

13

12,842

103,409

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

26

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Airlines

—

0.2%

(b)

American

Airlines,

Inc.

11.75%,

07/15/25

................

USD

13

$

13,576

5.50%,

04/20/26

.................

40

37,567

United

Airlines,

Inc.,

4.38%,

04/15/26

.....

40

35,700

86,843

Auto

Components

—

0.1%

Clarios

Global

LP,

6.25%,

05/15/26

(b)

.....

65

62,075

Goodyear

Tire

&

Rubber

Co.

(The),

9.50%,

05/31/25

.....................

8

8,300

70,375

Banks

—

9.2%

Banco

Bilbao

Vizcaya

Argentaria

SA,

0.38%,

10/02/24

(c)

....................

EUR

100

92,231

Banco

Santander

SA,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%),

1.72%,

09/14/27

(a)

..........

USD

200

165,455

Bank

of

America

Corp.

(a)

(SOFR

6

Month

+

1.46%),

1.49%,

05/19/24

100

97,538

(SOFR

6

Month

+

0.91%),

0.98%,

09/25/25

200

181,967

(LIBOR

USD

3

Month

+

0.87%),

2.46%,

10/22/25

....................

200

187,257

(SOFR

6

Month

+

0.65%),

1.53%,

12/06/25

240

219,529

Bank

of

Montreal,

Series

H,

4.25%,

09/14/24

85

83,620

Bank

of

Nova

Scotia

(The),

0.65%,

07/31/24

250

230,876

Barclays

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.65%),

5.50%,

08/09/28

(a)

...............

200

187,487

BNP

Paribas

SA,

(EURIBOR

3

Month

+

0.80%),

0.38%,

10/14/27

(a)(c)

.........

EUR

100

83,702

CaixaBank

SA,

(EURIBOR

3

Month

+

0.85%),

0.38%,

11/18/26

(a)(c)

..............

100

85,603

Citigroup,

Inc.

(a)

(SOFR

6

Month

+

0.53%),

1.28%,

11/03/25

USD

35

31,972

(SOFR

6

Month

+

1.53%),

3.29%,

03/17/26

150

141,617

(SOFR

6

Month

+

1.55%),

5.61%,

09/29/26

110

109,393

(SOFR

6

Month

+

0.77%),

1.46%,

06/09/27

60

51,084

Danske

Bank

A/S,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.35%),

1.62%,

09/11/26

(a)(b)

.........

200

173,085

Fifth

Third

Bancorp,

(SOFR

6

Month

+

0.69%),

1.71%,

11/01/27

(a)

...............

100

86,514

HSBC

Holdings

plc

(a)

(SOFR

6

Month

+

0.58%),

1.16%,

11/22/24

200

188,993

(SOFR

6

Month

+

1.40%),

2.63%,

11/07/25

200

185,691

Huntington

Bancshares,

Inc.,

(SOFR

6

Month

+

1.97%),

4.44%,

08/04/28

(a)

..........

50

47,211

Intesa

Sanpaolo

SpA,

1.50%,

04/10/24

(c)

...

EUR

100

95,337

JPMorgan

Chase

&

Co.

(a)

(LIBOR

USD

3

Month

+

0.89%),

3.80%,

07/23/24

....................

USD

49

48,330

(SOFR

6

Month

+

0.49%),

0.77%,

08/09/25

200

183,348

(SOFR

6

Month

+

1.85%),

2.08%,

04/22/26

102

92,931

Lloyds

Banking

Group

plc,

(EUR

Swap

Annual

1

Year

+

0.85%),

0.50%,

11/12/25

(a)(c)

...

EUR

100

90,853

Mitsubishi

UFJ

Financial

Group,

Inc.,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.70%),

4.79%,

07/18/25

(a)

USD

285

281,257

NatWest

Group

plc,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.15%),

2.36%,

05/22/24

(a)

..........

200

195,302

Societe

Generale

SA,

(EURIBOR

3

Month

+

1.28%),

0.88%,

09/22/28

(a)(c)

.........

EUR

100

81,921

Swedbank

AB,

1.54%,

11/16/26

(b)

.......

USD

200

173,690

Security

Par

(000)

Par

(000)

Value

Banks

(continued)

Toronto-Dominion

Bank

(The)

(SOFR

3

Month

+

0.24%),

3.24%,

01/06/23

(a)

...................

USD

100

$

99,897

1.25%,

12/13/24

.................

150

138,394

Truist

Financial

Corp.,

(SOFR

6

Month

+

0.61%),

1.27%,

03/02/27

(a)

..........

150

130,392

4,242,477

Biotechnology

—

0.2%

AbbVie,

Inc.,

1.25%,

06/01/24

.........

EUR

100

94,879

Building

Products

—

0.1%

Advanced

Drainage

Systems,

Inc.,

5.00%,

09/30/27

(b)

....................

USD

8

7,357

Carrier

Global

Corp.,

2.24%,

02/15/25

....

36

33,639

Standard

Industries,

Inc.,

4.75%,

01/15/28

(b)

20

16,898

57,894

Capital

Markets

—

3.9%

Bank

of

New

York

Mellon

Corp.

(The),

Series

J,

0.85%,

10/25/24

................

310

286,273

Blackstone

Private

Credit

Fund

3.25%,

03/15/27

.................

100

82,785

4.00%,

01/15/29

.................

40

32,042

Credit

Suisse

Group

AG,

(EUR

Swap

Annual

1

Year

+

0.77%),

0.65%,

01/14/28

(a)(c)

....

EUR

100

78,080

Deutsche

Bank

AG

(a)

(SOFR

6

Month

+

1.13%),

1.45%,

04/01/25

USD

150

138,002

(EURIBOR

3

Month

+

1.38%),

1.88%,

02/23/28

(c)

...................

EUR

200

166,683

Goldman

Sachs

Group,

Inc.

(The)

(a)

(SOFR

6

Month

+

1.51%),

4.39%,

06/15/27

USD

155

147,657

(SOFR

6

Month

+

1.11%),

2.64%,

02/24/28

95

82,426

Intercontinental

Exchange,

Inc.,

4.00%,

09/15/27

.....................

70

66,446

Morgan

Stanley

(a)

(SOFR

6

Month

+

0.47%),

0.56%,

11/10/23

200

198,903

(SOFR

6

Month

+

0.56%),

1.16%,

10/21/25

275

250,630

(EURIBOR

3

Month

+

0.83%),

1.34%,

10/23/26

....................

EUR

100

90,352

MSCI,

Inc.,

3.63%,

09/01/30

(b)

.........

USD

7

5,760

UBS

Group

AG,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.85%),

1.49%,

08/10/27

(a)(b)

..............

200

168,016

1,794,055

Chemicals

—

1.0%

Element

Solutions,

Inc.,

3.88%,

09/01/28

(b)

.

45

36,234

HB

Fuller

Co.,

4.00%,

02/15/27

........

13

11,752

International

Flavors

&

Fragrances,

Inc.

1.23%,

10/01/25

(b)

................

318

278,673

1.80%,

09/25/26

.................

EUR

100

89,937

Minerals

Technologies,

Inc.,

5.00%,

07/01/28

(b)

USD

9

7,833

Sherwin-Williams

Co.

(The),

4.25%,

08/08/25

30

29,282

WR

Grace

Holdings

LLC,

5.63%,

08/15/29

(b)

13

9,750

463,461

Commercial

Services

&

Supplies

—

0.5%

ADT

Security

Corp.

(The),

4.13%,

08/01/29

(b)

8

6,640

Allied

Universal

Holdco

LLC,

6.63%,

07/15/26

(b)

21

18,716

APX

Group,

Inc.,

6.75%,

02/15/27

(b)

......

8

7,473

Aramark

Services,

Inc.,

5.00%,

02/01/28

(b)

..

15

13,361

Garda

World

Security

Corp.,

4.63%,

02/15/27

(b)

5

4,287

GFL

Environmental,

Inc.

(b)

5.13%,

12/15/26

.................

14

13,038

4.00%,

08/01/28

.................

7

5,834

Legends

Hospitality

Holding

Co.

LLC,

5.00%,

02/01/26

(b)

....................

6

5,138

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

27

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Commercial

Services

&

Supplies

(continued)

Nielsen

Finance

LLC,

5.63%,

10/01/28

(b)

...

USD

20

$

19,851

Prime

Security

Services

Borrower

LLC,

6.25%,

01/15/28

(b)

....................

12

10,240

Republic

Services,

Inc.,

3.38%,

11/15/27

...

150

137,172

241,750

Communications

Equipment

—

0.1%

Avaya,

Inc.,

6.13%,

09/15/28

(b)

.........

5

2,487

CommScope

Technologies

LLC,

6.00%,

06/15/25

(b)

....................

8

7,108

CommScope,

Inc.,

6.00%,

03/01/26

(b)

.....

19

17,494

Nokia

OYJ,

4.38%,

06/12/27

..........

8

7,210

Viasat,

Inc.,

5.63%,

04/15/27

(b)

.........

15

12,479

46,778

Consumer

Finance

—

1.0%

American

Express

Co.,

2.55%,

03/04/27

...

190

169,235

General

Motors

Financial

Co.,

Inc.,

3.50%,

11/07/24

.....................

100

95,794

OneMain

Finance

Corp.

6.88%,

03/15/25

.................

2

1,880

7.13%,

03/15/26

.................

12

10,817

SLM

Corp.,

3.13%,

11/02/26

..........

7

5,794

Synchrony

Financial

4.88%,

06/13/25

.................

125

120,588

4.50%,

07/23/25

.................

75

71,531

475,639

Containers

&

Packaging

—

0.3%

Ball

Corp.,

4.88%,

03/15/26

..........

72

68,307

Clydesdale

Acquisition

Holdings,

Inc.,

6.63%,

04/15/29

(b)

....................

7

6,370

Crown

Americas

LLC,

4.25%,

09/30/26

...

30

27,176

Graphic

Packaging

International

LLC,

3.50%,

03/15/28

(b)

....................

13

11,054

Sealed

Air

Corp.,

4.00%,

12/01/27

(b)

.....

20

17,307

130,214

Diversified

Financial

Services

—

0.1%

(b)

MPH

Acquisition

Holdings

LLC,

5.50%,

09/01/28

.....................

14

11,556

Sabre

GLBL,

Inc.

9.25%,

04/15/25

.................

2

1,915

7.38%,

09/01/25

.................

5

4,478

Shift4

Payments

LLC,

4.63%,

11/01/26

....

15

13,678

31,627

Diversified

Telecommunication

Services

—

1.4%

AT&T,

Inc.,

1.80%,

09/05/26

..........

EUR

100

91,331

CCO

Holdings

LLC

(b)

5.13%,

05/01/27

.................

USD

15

13,538

5.00%,

02/01/28

.................

19

16,383

6.38%,

09/01/29

.................

12

11,017

Consolidated

Communications,

Inc.,

6.50%,

10/01/28

(b)

....................

13

9,717

Frontier

Communications

Holdings

LLC

(b)

5.88%,

10/15/27

.................

17

15,236

5.00%,

05/01/28

.................

5

4,291

Level

3

Financing,

Inc.

(b)

3.40%,

03/01/27

.................

1

838

4.63%,

09/15/27

.................

4

3,310

4.25%,

07/01/28

.................

22

17,160

Lumen

Technologies,

Inc.

(b)

5.13%,

12/15/26

.................

54

46,462

4.00%,

02/15/27

.................

11

9,238

4.50%,

01/15/29

.................

4

2,810

Switch

Ltd.,

3.75%,

09/15/28

(b)

.........

21

20,869

Security

Par

(000)

Par

(000)

Value

Diversified

Telecommunication

Services

(continued)

Verizon

Communications,

Inc.

0.85%,

11/20/25

.................

USD

200

$

175,304

2.10%,

03/22/28

.................

195

164,621

Zayo

Group

Holdings,

Inc.,

4.00%,

03/01/27

(b)

57

45,740

647,865

Electric

Utilities

—

1.4%

EDP

-

Energias

de

Portugal

SA,

1.63%,

04/15/27

(c)

....................

EUR

100

89,399

Enel

Finance

International

NV,

1.38%,

07/12/26

(b)

....................

USD

200

168,965

NextEra

Energy

Capital

Holdings,

Inc.

4.20%,

06/20/24

.................

50

49,373

1.88%,

01/15/27

.................

180

156,202

NextEra

Energy

Operating

Partners

LP,

4.25%,

07/15/24

(b)

....................

13

12,449

NRG

Energy,

Inc.

5.75%,

01/15/28

.................

29

26,763

5.25%,

06/15/29

(b)

................

2

1,750

Pattern

Energy

Operations

LP,

4.50%,

08/15/28

(b)

....................

66

57,219

Texas

Electric

Market

Stabilization

Funding

N

LLC,

Series

A-1,

4.27%,

08/01/34

(b)

....

100

95,995

658,115

Electrical

Equipment

—

0.1%

(b)

Sensata

Technologies

BV,

5.00%,

10/01/25

.

15

14,311

Vertiv

Group

Corp.,

4.13%,

11/15/28

.....

18

14,490

28,801

Energy

Equipment

&

Services

—

0.0%

Halliburton

Co.,

3.80%,

11/15/25

.......

20

19,262

Entertainment

—

0.1%

(b)

Lions

Gate

Capital

Holdings

LLC,

5.50%,

04/15/29

.....................

7

5,215

Live

Nation

Entertainment,

Inc.

6.50%,

05/15/27

.................

2

1,924

4.75%,

10/15/27

.................

13

11,286

3.75%,

01/15/28

.................

23

19,493

WMG

Acquisition

Corp.,

3.88%,

07/15/30

..

7

5,735

43,653

Equity

Real

Estate

Investment

Trusts

(REITs)

—

2.5%

American

Tower

Corp.

1.60%,

04/15/26

.................

330

287,645

0.45%,

01/15/27

.................

EUR

100

83,011

Brookfield

Property

REIT,

Inc.,

4.50%,

04/01/27

(b)

....................

USD

6

4,920

Crown

Castle,

Inc.

3.15%,

07/15/23

.................

350

345,268

3.20%,

09/01/24

.................

50

48,374

1.35%,

07/15/25

.................

70

62,818

1.05%,

07/15/26

.................

115

97,140

Equinix,

Inc.,

0.25%,

03/15/27

.........

EUR

100

82,537

HAT

Holdings

I

LLC,

3.38%,

06/15/26

(b)

...

USD

13

10,432

Healthpeak

Properties,

Inc.,

1.35%,

02/01/27

100

84,683

Iron

Mountain,

Inc.,

5.00%,

07/15/28

(b)

....

20

17,200

SBA

Communications

Corp.,

3.88%,

02/15/27

17

15,077

1,139,105

Food

&

Staples

Retailing

—

0.1%

(b)

Albertsons

Cos.,

Inc.

3.25%,

03/15/26

.................

6

5,270

5.88%,

02/15/28

.................

34

31,365

United

Natural

Foods,

Inc.,

6.75%,

10/15/28

6

5,488

US

Foods,

Inc.

6.25%,

04/15/25

.................

13

12,770

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

28

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Food

&

Staples

Retailing

(continued)

4.75%,

02/15/29

.................

USD

2

$

1,712

56,605

Food

Products

—

0.1%

(b)

Chobani

LLC,

4.63%,

11/15/28

.........

14

11,908

Darling

Ingredients,

Inc.,

5.25%,

04/15/27

..

15

14,147

Lamb

Weston

Holdings,

Inc.,

4.88%,

05/15/28

37

33,564

59,619

Health

Care

Equipment

&

Supplies

—

0.1%

Avantor

Funding,

Inc.,

4.63%,

07/15/28

(b)

..

26

23,138

Hologic,

Inc.

(b)

4.63%,

02/01/28

.................

15

13,837

3.25%,

02/15/29

.................

7

5,725

Medline

Borrower

LP,

3.88%,

04/01/29

(b)

...

7

5,612

Teleflex,

Inc.

4.63%,

11/15/27

.................

2

1,802

4.25%,

06/01/28

(b)

................

12

10,437

60,551

Health

Care

Providers

&

Services

—

0.7%

Centene

Corp.,

2.45%,

07/15/28

........

69

56,181

Community

Health

Systems,

Inc.,

8.00%,

03/15/26

(b)

....................

3

2,597

CVS

Health

Corp.,

2.63%,

08/15/24

......

50

47,964

Encompass

Health

Corp.,

4.50%,

02/01/28

.

34

29,121

Fresenius

SE

&

Co.

KGaA,

0.75%,

01/15/28

(c)

EUR

100

83,121

HCA,

Inc.,

5.25%,

04/15/25

...........

USD

50

48,976

Molina

Healthcare,

Inc.,

4.38%,

06/15/28

(b)

.

22

19,855

Tenet

Healthcare

Corp.

(b)

6.25%,

02/01/27

.................

2

1,866

5.13%,

11/01/27

.................

54

48,454

338,135

Hotels,

Restaurants

&

Leisure

—

0.3%

(b)

1011778

BC

ULC

3.88%,

01/15/28

.................

8

6,962

4.38%,

01/15/28

.................

35

30,327

Cedar

Fair

LP,

5.50%,

05/01/25

........

9

8,657

Hilton

Domestic

Operating

Co.,

Inc.

5.75%,

05/01/28

.................

58

54,230

3.75%,

05/01/29

.................

2

1,652

Six

Flags

Theme

Parks,

Inc.,

7.00%,

07/01/25

6

5,997

Vail

Resorts,

Inc.,

6.25%,

05/15/25

......

9

8,878

116,703

Household

Durables

—

0.0%

Tempur

Sealy

International,

Inc.,

4.00%,

04/15/29

(b)

....................

12

9,456

Independent

Power

and

Renewable

Electricity

Producers

—

0.2%

Clearway

Energy

Operating

LLC,

4.75%,

03/15/28

(b)

....................

90

80,136

Insurance

—

0.6%

(b)

Alliant

Holdings

Intermediate

LLC,

4.25%,

10/15/27

.....................

79

67,480

AmWINS

Group,

Inc.,

4.88%,

06/30/29

....

3

2,490

Metropolitan

Life

Global

Funding

I,

2.80%,

03/21/25

.....................

170

161,013

NFP

Corp.,

4.88%,

08/15/28

..........

58

49,492

280,475

Interactive

Media

&

Services

—

0.0%

Twitter,

Inc.,

3.88%,

12/15/27

(b)

.........

15

14,066

Security

Par

(000)

Par

(000)

Value

Internet

&

Direct

Marketing

Retail

—

0.5%

eBay,

Inc.,

2.75%,

01/30/23

..........

USD

225

$

223,634

Go

Daddy

Operating

Co.

LLC,

3.50%,

03/01/29

(b)

....................

8

6,543

Match

Group

Holdings

II

LLC,

4.63%,

06/01/28

(b)

....................

19

16,601

246,778

IT

Services

—

0.8%

Black

Knight

InfoServ

LLC,

3.63%,

09/01/28

(b)

15

12,788

Block,

Inc.,

2.75%,

06/01/26

..........

21

18,049

Booz

Allen

Hamilton,

Inc.,

3.88%,

09/01/28

(b)

9

7,742

Gartner,

Inc.,

4.50%,

07/01/28

(b)

........

26

23,249

International

Business

Machines

Corp.,

0.95%,

05/23/25

.....................

EUR

100

92,670

Northwest

Fiber

LLC,

4.75%,

04/30/27

(b)

...

USD

32

27,840

PayPal

Holdings,

Inc.

2.65%,

10/01/26

.................

110

100,952

3.90%,

06/01/27

.................

70

67,067

Twilio,

Inc.,

3.63%,

03/15/29

..........

23

18,573

368,930

Life

Sciences

Tools

&

Services

—

0.3%

Charles

River

Laboratories

International,

Inc.,

4.25%,

05/01/28

(b)

...............

32

27,868

Danaher

Corp.,

2.10%,

09/30/26

.......

EUR

100

93,246

Syneos

Health,

Inc.,

3.63%,

01/15/29

(b)

...

USD

19

15,129

136,243

Machinery

—

0.0%

(b)

Mueller

Water

Products,

Inc.,

4.00%,

06/15/29

8

6,808

Wabash

National

Corp.,

4.50%,

10/15/28

..

10

7,752

14,560

Media

—

0.3%

(b)

Clear

Channel

Outdoor

Holdings,

Inc.,

5.13%,

08/15/27

.....................

55

46,461

Directv

Financing

LLC,

5.88%,

08/15/27

...

12

10,345

GCI

LLC,

4.75%,

10/15/28

...........

2

1,661

Outfront

Media

Capital

LLC,

5.00%,

08/15/27

2

1,747

Radiate

Holdco

LLC,

4.50%,

09/15/26

....

18

14,764

Sirius

XM

Radio,

Inc.

5.00%,

08/01/27

.................

2

1,835

4.00%,

07/15/28

.................

49

41,678

118,491

Metals

&

Mining

—

0.6%

Big

River

Steel

LLC,

6.63%,

01/31/29

(b)

...

61

56,143

Novelis

Corp.

(b)

3.25%,

11/15/26

.................

32

26,712

3.88%,

08/15/31

.................

21

15,664

Nucor

Corp.,

4.30%,

05/23/27

.........

120

114,877

Steel

Dynamics,

Inc.,

2.40%,

06/15/25

....

50

46,226

259,622

Mortgage

Real

Estate

Investment

Trusts

(REITs)

—

0.0%

Starwood

Property

Trust,

Inc.

(b)

5.50%,

11/01/23

.................

2

1,965

4.38%,

01/15/27

.................

6

5,115

7,080

Multi-Utilities

—

0.5%

E.ON

SE,

0.88%,

01/08/25

(c)

..........

EUR

30

27,862

Engie

SA,

1.75%,

03/27/28

(c)

..........

100

88,617

Sempra

Energy,

3.30%,

04/01/25

.......

USD

50

47,586

Veolia

Environnement

SA,

0.00%,

01/14/27

(c)

EUR

100

84,673

248,738

Oil,

Gas

&

Consumable

Fuels

—

0.2%

Eni

SpA,

1.00%,

03/14/25

(c)

...........

100

93,186

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

29

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Pharmaceuticals

—

0.1%

Catalent

Pharma

Solutions,

Inc.,

5.00%,

07/15/27

(b)

....................

USD

33

$

29,435

Professional

Services

—

0.0%

(b)

AMN

Healthcare,

Inc.,

4.63%,

10/01/27

...

11

9,868

CoreLogic,

Inc.,

4.50%,

05/01/28

.......

9

6,120

15,988

Real

Estate

Management

&

Development

—

0.1%

(b)

Cushman

&

Wakefield

US

Borrower

LLC,

6.75%,

05/15/28

................

16

14,841

Howard

Hughes

Corp.

(The),

5.38%,

08/01/28

19

15,770

Realogy

Group

LLC,

5.75%,

01/15/29

....

11

7,934

38,545

Road

&

Rail

—

0.3%

Ryder

System,

Inc.,

3.75%,

06/09/23

.....

110

109,271

Uber

Technologies,

Inc.

(b)

8.00%,

11/01/26

.................

6

5,991

6.25%,

01/15/28

.................

25

23,250

Williams

Scotsman

International,

Inc.,

4.63%,

08/15/28

(b)

....................

14

12,249

150,761

Semiconductors

&

Semiconductor

Equipment

—

1.2%

Broadcom

Corp.,

3.13%,

01/15/25

......

5

4,797

Entegris

Escrow

Corp.,

4.75%,

04/15/29

(b)

..

15

13,212

Entegris,

Inc.,

4.38%,

04/15/28

(b)

.......

5

4,239

NXP

BV

4.88%,

03/01/24

.................

150

148,572

2.70%,

05/01/25

.................

330

305,312

3.88%,

06/18/26

.................

70

65,450

Synaptics,

Inc.,

4.00%,

06/15/29

(b)

.......

7

5,636

547,218

Software

—

1.8%

Central

Parent,

Inc.,

7.25%,

06/15/29

(b)

....

6

5,704

Clarivate

Science

Holdings

Corp.,

3.88%,

07/01/28

(b)

....................

41

33,817

Consensus

Cloud

Solutions,

Inc.,

6.00%,

10/15/26

(b)

....................

13

11,456

Fair

Isaac

Corp.,

4.00%,

06/15/28

(b)

......

12

10,225

MicroStrategy,

Inc.,

6.13%,

06/15/28

(b)

....

7

5,768

NortonLifeLock,

Inc.,

6.75%,

09/30/27

(b)

...

10

9,595

Open

Text

Corp.,

3.88%,

02/15/28

(b)

.....

24

19,848

Oracle

Corp.

2.50%,

10/15/22

.................

147

146,918

1.65%,

03/25/26

.................

185

162,097

Picard

Midco,

Inc.,

6.50%,

03/31/29

(b)

.....

40

33,788

PTC,

Inc.,

4.00%,

02/15/28

(b)

..........

19

16,617

SS&C

Technologies,

Inc.,

5.50%,

09/30/27

(b)

25

22,805

Veritas

US,

Inc.,

7.50%,

09/01/25

(b)

......

2

1,532

VMware,

Inc.

0.60%,

08/15/23

.................

120

115,532

1.40%,

08/15/26

.................

155

132,559

Workday,

Inc.,

3.50%,

04/01/27

........

80

73,999

ZoomInfo

Technologies

LLC,

3.88%,

02/01/29

(b)

18

14,687

816,947

Specialty

Retail

—

0.7%

Group

1

Automotive,

Inc.,

4.00%,

08/15/28

(b)

6

4,831

Home

Depot,

Inc.

(The),

2.88%,

04/15/27

..

55

50,847

Lowe's

Cos.,

Inc.

3.35%,

04/01/27

.................

60

55,568

3.10%,

05/03/27

.................

180

165,064

SRS

Distribution,

Inc.,

4.63%,

07/01/28

(b)

..

42

36,078

312,388

Security

Par

(000)

Par

(000)

Value

Textiles,

Apparel

&

Luxury

Goods

—

0.1%

(b)

Crocs,

Inc.,

4.25%,

03/15/29

..........

USD

17

$

13,515

William

Carter

Co.

(The),

5.63%,

03/15/27

..

14

13,089

26,604

Thrifts

&

Mortgage

Finance

—

0.0%

Enact

Holdings,

Inc.,

6.50%,

08/15/25

(b)

...

13

12,424

MGIC

Investment

Corp.,

5.25%,

08/15/28

..

10

8,934

Nationstar

Mortgage

Holdings,

Inc.,

6.00%,

01/15/27

(b)

....................

3

2,561

23,919

Trading

Companies

&

Distributors

—

0.5%

Air

Lease

Corp.,

1.88%,

08/15/26

.......

35

29,662

Aviation

Capital

Group

LLC,

1.95%,

09/20/26

(b)

150

121,479

Herc

Holdings,

Inc.,

5.50%,

07/15/27

(b)

....

14

12,600

Imola

Merger

Corp.,

4.75%,

05/15/29

(b)

....

8

6,749

United

Rentals

North

America,

Inc.,

4.88%,

01/15/28

.....................

21

19,254

WESCO

Distribution,

Inc.,

7.25%,

06/15/28

(b)

24

23,507

213,251

Wireless

Telecommunication

Services

—

0.6%

Rogers

Communications,

Inc.,

3.20%,

03/15/27

(b)

....................

145

132,438

Sprint

Corp.,

7.63%,

03/01/26

.........

38

39,305

T-Mobile

USA,

Inc.

1.50%,

02/15/26

.................

88

77,238

2.25%,

02/15/26

.................

23

20,580

269,561

Total

Corporate

Bonds

—

33.1%

(Cost:

$17,243,018)

..............................

15,330,193

Foreign

Agency

Obligations

France

—

0.2%

Electricite

de

France

SA,

1.00%

,

10/13/26

(c)

.

EUR

100

89,404

Germany

—

0.7%

(c)

Kreditanstalt

fuer

Wiederaufbau,

0.00%

,

09/15/28

......................

200

168,139

Landwirtschaftliche

Rentenbank,

0.00%

,

09/22/27

......................

200

171,258

339,397

Supranational

—

4.2%

Asian

Development

Bank,

0.35%

,

07/16/25

.

400

367,087

European

Bank

for

Reconstruction

&

Development,

0.00%

,

01/10/24

.......

500

474,653

European

Investment

Bank

(c)

0.50%,

11/15/23

.................

400

385,143

1.25%,

11/13/26

.................

270

250,476

Nordic

Investment

Bank,

0.13%

,

06/10/24

(c)

.

500

470,081

1,947,440

Total

Foreign

Agency

Obligations

—

5.1%

(Cost:

$2,852,702)

..............................

2,376,241

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

1.5%

(a)(b)

Angel

Oak

Mortgage

Trust,

Series

2022-2,

Class

A1,

3.35%,

01/25/67

..........

USD

46

41,044

COLT

Mortgage

Loan

Trust,

Series

2022-3,

Class

A1,

3.90%,

02/25/67

..........

94

86,043

CSMC

Trust,

Series

2021-NQM8,

Class

A1,

1.84%,

10/25/66

.................

87

73,069

Deephaven

Residential

Mortgage

Trust,

Series

2021-4,

Class

A1,

1.93%,

11/25/66

.....

85

73,718

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

30

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Collateralized

Mortgage

Obligations

(continued)

GCAT

Trust,

Series

2021-NQM7,

Class

A1,

1.91%,

08/25/66

.................

USD

73

$

65,168

MFA

Trust,

Series

2021-INV2,

Class

A1,

1.91%,

11/25/56

.......................

184

158,664

PRKCM

Trust,

Series

2021-AFC2,

Class

A1,

2.07%,

11/25/56

.................

105

86,646

RCKT

Mortgage

Trust,

Series

2022-4,

Class

A2,

3.50%,

06/25/52

..............

98

84,147

668,499

Commercial

Mortgage-Backed

Securities

—

5.7%

1211

Avenue

of

the

Americas

Trust,

Series

2015-1211,

Class

A1A2,

3.90%,

08/10/35

(b)

150

141,355

245

Park

Avenue

Trust,

Series

2017-245P,

Class

A,

3.51%,

06/05/37

(b)

..........

140

124,661

AREIT

LLC,

Series

2022-CRE7,

Class

A,

(1

Month

CME

Term

SOFR

+

2.24%),

5.26%,

06/17/39

(a)(b)

....................

100

98,752

BAMLL

Commercial

Mortgage

Securities

Trust,

Series

2015-200P,

Class

A,

3.22%,

04/14/33

(b)

.....................

200

186,625

Citigroup

Commercial

Mortgage

Trust

Series

2016-P5,

Class

A3,

2.68%,

10/10/49

97

87,553

Series

2018-C5,

Class

A4,

4.23%,

06/10/51

(a)

...................

150

141,611

Commercial

Mortgage

Trust

Series

2013-CR10,

Class

A4,

4.21%,

08/10/46

(a)

...................

175

173,780

Series

2015-CR22,

Class

A5,

3.31%,

03/10/48

....................

200

190,765

CSAIL

Commercial

Mortgage

Trust,

Series

2016-C5,

Class

A5,

3.76%,

11/15/48

....

200

189,947

Grace

Trust,

Series

2020-GRCE,

Class

A,

2.35%,

12/10/40

(b)

................

150

115,226

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

(b)

Series

2021-NYAH,

Class

A,

(LIBOR

USD

1

Month

+

0.76%),

3.58%,

06/15/38

(a)

..

200

192,961

Series

2022-OPO,

Class

A,

3.02%,

01/05/39

100

86,441

MAD

Mortgage

Trust,

Series

2017-330M,

Class

A,

3.29%,

08/15/34

(a)(b)

.............

250

235,276

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

Series

2014-C15,

Class

A4,

4.05%,

04/15/47

....................

135

132,645

Series

2015-C20,

Class

A4,

3.25%,

02/15/48

....................

180

171,893

Ready

Capital

Mortgage

Financing

LLC,

Series

2022-FL8,

Class

A,

(SOFR

30

Day

Average

+

1.65%),

3.95%,

01/25/37

(a)(b)

........

60

58,200

SLG

Office

Trust,

Series

2021-OVA,

Class

A,

2.59%,

07/15/41

(b)

................

100

80,130

Taubman

Centers

Commercial

Mortgage

Trust,

Series

2022-DPM,

Class

A,

(1

Month

CME

Term

SOFR

+

2.19%),

5.03%,

05/15/37

(a)(b)

100

97,648

Wells

Fargo

Commercial

Mortgage

Trust

Series

2016-LC25,

Class

A4,

3.64%,

12/15/59

....................

50

46,618

Series

2021-C60,

Class

ASB,

2.13%,

08/15/54

....................

100

83,487

2,635,574

Total

Non-Agency

Mortgage-Backed

Securities

—

7.2%

(Cost:

$3,676,160)

..............................

3,304,073

Security

Par

(000)

Par

(000)

Value

U.S.

Government

Sponsored

Agency

Securities

Mortgage-Backed

Securities

—

10.3%

Government

National

Mortgage

Association

2.50%, 10/20/51

.................

USD

209

$

179,233

3.00%, 10/20/51

.................

1,005

891,693

Uniform

Mortgage-Backed

Securities

2.50%, 11/01/51

.................

186

158,864

3.00%, 11/01/51

.................

254

226,452

3.50%, 11/01/51

.................

952

881,472

4.50%, 10/25/52

-

11/25/52

(d)

.........

2,570

2,446,734

Total

U.S.

Government

Sponsored

Agency

Securities

—

10.3%

(Cost:

$5,225,481)

..............................

4,784,448

U.S.

Treasury

Obligations

U.S.

Treasury

Bonds

,

1.75%, 08/15/41

....

610

417,064

U.S.

Treasury

Inflation

Linked

Notes

,

0.13%, 04/15/27

.................

530

488,586

U.S.

Treasury

Notes

0.13%, 12/31/22

-

05/15/23

..........

260

255,335

0.75%, 11/15/24

.................

670

622,576

1.75%, 03/15/25

.................

2,020

1,902,114

2.75%, 05/15/25

.................

890

856,451

2.88%, 06/15/25

.................

2,680

2,584,630

3.13%, 08/15/25

.................

2,600

2,520,172

3.50%, 09/15/25

.................

3,075

3,012,299

Total

U.S.

Treasury

Obligations

—

27.4%

(Cost:

$13,140,249)

..............................

12,659,227

Total

Long-Term

Investments

—

97.4%

(Cost:

$49,095,017)

..............................

45,059,642

Short-Term

Securities

Commercial

Paper

—

1.1%

Commonwealth

Bank

of

Australia,

(SOFR

1

Day

+

0.45%),

3.41%

,

02/21/23

(a)

......

250

250,201

Enel

Finance

America

LLC,

5.27%

,

09/06/23

(e)

250

238,593

Total

Commercial

Paper

—

1.1%

(Cost:

$488,195)

................................

488,794

Shares

Shares

Money

Market

Funds

—

2.9%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(f)(g)

.................

1,345,914

1,345,914

Total

Money

Market

Funds

—

2.9%

(Cost:

$1,345,914)

..............................

1,345,914

Par

(000)

Pa

r

(

000)

U.S.

Treasury

Obligations

—

3.8%

U.S.

Treasury

Bills

(e)

3.84%, 03/23/23

.................

900

884,343

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

31

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

2.08%, 05/18/23

.................

USD

900

$

880,159

Total

U.S.

Treasury

Obligations

—

3.8%

(Cost:

$1,771,958)

..............................

1,764,502

Total

Short-Term

Securities

—

7.8%

(Cost:

$3,606,067)

..............................

3,599,210

Total

Investments

Before

TBA

Sale

Commitments

—

105.2%

(Cost:

$52,701,084

)

..............................

48,658,852

TBA

Sale

Commitments

Mortgage-Backed

Securities

—

(1.6)%

Uniform

Mortgage-Backed

Securities,

4.50%, 10/25/52

(d)

................

(750)

(714,434)

Total

TBA

Sale

Commitments

—

(1.6)%

(Proceeds:

$(717,148))

...........................

(714,434)

Total

Investments

Net

of

TBA

Sale

Commitments

—

103.6%

(Cost:

$51,983,936

)

..............................

47,944,418

Liabilities

in

Excess

of

Other

Assets

—

(3.6)%

............

(1,667,497)

Net

Assets

—

100.0%

..............................

$

46,276,921

(a)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(b)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(c)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(d)

Represents

or

includes

a

TBA

transaction.

(e)

Rates

are

discount

rates

or

a

range

of

discount

rates

as

of

period

end.

(f)

Annualized

7-day

yield

as

of

period

end.

(g)

Affiliate

of

the

Fund.

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

period

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

10/18/21

(a)

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

—

$

1,345,914

(b)

$

—

$

—

$

—

$

1,345,914

1,345,914

$

8,239

$

—

—

—

(a)

Commencement

of

operations.

(b)

Represents

net

amount

purchased

(sold).

For

Fund

compliance

purposes,

the

Fund's

industry

classifications

refer

to

one

or

more

of

the

industry

sub-classifications

used

by

one

or

more

widely

recognized

market

indexes

or

rating

group

indexes,

and/or

as

defined

by

the

investment

adviser.

These

definitions

may

not

apply

for

purposes

of

this

report,

which

may

combine

such

industry

sub-classifications

for

reporting

ease.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

32

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

2

Year

Note

....................................................

93

12/30/22

$

19,095

$

(314,594)

Short

Contracts

Euro-Bobl

...............................................................

16

12/08/22

1,878

45,514

Euro-Bund

..............................................................

1

12/08/22

136

6,435

Euro-Schatz

.............................................................

10

12/08/22

1,050

9,460

U.S.

Treasury

10

Year

Note

...................................................

17

12/20/22

1,905

56,846

U.S.

Treasury

10

Year

Ultra

Note

...............................................

10

12/20/22

1,185

69,074

U.S.

Treasury

Long

Bond

....................................................

3

12/20/22

380

28,180

U.S.

Treasury

Ultra

Bond

....................................................

3

12/20/22

410

40,379

U.S.

Treasury

5

Year

Note

....................................................

40

12/30/22

4,298

123,617

379,505

$

64,911

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

USD

4,448,177

EUR

4,427,000

Morgan

Stanley

&

Co.

International

plc

12/21/22

$

82,000

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.39.V1

...................

5.00

%

Quarterly

12/20/27

USD

520

$

20,546

$

24,570

$

(4,024)

CDX.NA.IG.39.V1

...................

1.00

Quarterly

12/20/27

USD

340

1,062

(548)

1,610

$

21,608

$

24,022

$

(2,414)

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

1

day

SOFR

Annual

3.66%

Annual

01/05/23

(a)

09/30/24

USD

1,025

$

(10,482)

$

219

$

(10,701)

3.22%

Annual

1

day

SOFR

Annual

01/05/23

(a)

02/28/27

USD

1,025

25,632

412

25,220

$

15,150

$

631

$

14,519

(a)

Forward

swap.

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

%

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

33

Schedule

of

Investments

(continued)

September

30,

2022

Derivative

Financial

Instruments

Categorized

by

Risk

Exposure

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

25,201

$

(548)

$

26,830

$

(14,725)

$

—

(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.

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)

.....

$

—

$

—

$

—

$

—

$

379,505

$

—

$

379,505

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

82,000

—

—

82,000

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

1,610

—

—

25,220

—

26,830

$

—

$

1,610

$

—

$

82,000

$

404,725

$

—

$

488,335

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

314,594

$

—

$

314,594

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

4,024

—

—

10,701

—

14,725

$

—

$

4,024

$

—

$

—

$

325,295

$

—

$

329,319

(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

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

—

$

—

$

260,065

$

—

$

260,065

Forward

foreign

currency

exchange

contracts

....

—

—

—

684,085

—

—

684,085

Swaps

..............................

—

36,920

—

—

7,461

—

44,381

$

—

$

36,920

$

—

$

684,085

$

267,526

$

—

$

988,531

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

64,911

$

—

$

64,911

Forward

foreign

currency

exchange

contracts

....

—

—

—

82,000

—

—

82,000

Swaps

..............................

—

(2,414)

—

—

14,519

—

12,105

$

—

$

(2,414)

$

—

$

82,000

$

79,430

$

—

$

159,016

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Low

Duration

Bond

Fund

34

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

20,458,443

Average

notional

value

of

contracts

—

short

.................................................................................

$

12,393,290

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

4,643,400

Average

amounts

sold

—

in

USD

........................................................................................

$

32,793

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

525,000

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

512,500

Average

notional

value

—

receives

fixed

rate

................................................................................

$

512,500

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

31,949

$

30,236

Forward

foreign

currency

exchange

contracts

.................................................................

82,000

—

Swaps

—

centrally

cleared

..............................................................................

5,986

—

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

119,935

$

30,236

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(37,935)

(30,236)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

82,000

$

—

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

Non-cash

Collateral

Received

Cash

Collateral

Received

Net

Amount

of

Derivative

Assets

(a)(b)

Morgan

Stanley

&

Co.

International

plc

..................

$

82,000

$

—

$

—

$

—

$

82,000

(a)

Net

amount

may

also

include

forward

foreign

currency

exchange

contracts

that

are

not

required

to

be

collateralized.

(b)

Net

amount

represents

the

net

amount

receivable

from

the

counterparty

in

the

event

of

default.

BlackRock

Sustainable

Low

Duration

Bond

Fund

Schedules

of

Investments

35

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

......................................

$

—

$

45,059,642

$

—

$

45,059,642

Short-Term

Securities

Commercial

Paper

.......................................

—

488,794

—

488,794

Money

Market

Funds

......................................

1,345,914

—

—

1,345,914

U.S.

Treasury

Obligations

...................................

—

1,764,502

—

1,764,502

Liabilities

Investments

TBA

Sale

Commitments

....................................

—

(714,434)

—

(714,434)

$

1,345,914

$

46,598,504

$

—

$

47,944,418

Derivative

Financial

Instruments

(a)

Assets

Credit

contracts

...........................................

$

—

$

1,61

0

$

—

$

1,61

0

Foreign

currency

exchange

contracts

............................

—

82,000

—

82,000

Interest

rate

contracts

.......................................

379,505

25,220

—

404,725

Liabilities

Credit

contracts

...........................................

—

(4,024)

—

(4,024)

Interest

rate

contracts

.......................................

(314,594)

(10,701)

—

(325,295)

$

64,911

$

94,10

5

$

—

$

159,01

6

(a)

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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

36

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

September

30,

2022

Security

Par

(000)

Pa

r

(

000)

Value

Asset-Backed

Securities

Cayman

Islands

—

8.6%

(a)(b)

AGL

Core

CLO

4

Ltd.,

Series

2020-4A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.07%),

3.78%,

04/20/33

.......

USD

250

$

242,425

Anchorage

Capital

CLO

8

Ltd.,

Series

2016-8A,

Class

BR2,

(LIBOR

USD

3

Month

+

1.80%),

4.57%,

10/27/34

250

235,616

Bridge

Street

CLO

II

Ltd.,

Series

2021-1A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.23%),

3.94%,

07/20/34

250

239,554

CIFC

Funding

Ltd.,

Series

2020-3A,

Class

A1R,

(LIBOR

USD

3

Month

+

1.13%),

3.84%,

10/20/34

.......

250

238,809

Gilbert

Park

CLO

Ltd.,

Series

2017-1A,

Class

A,

(LIBOR

USD

3

Month

+

1.19%),

3.70%,

10/15/30

.......

250

245,746

GoldentTree

Loan

Management

US

CLO

1

Ltd.

Series

2021-11A,

Class

A,

(LIBOR

USD

3

Month

+

1.13%),

3.84%,

10/20/34

...............

250

238,804

Series

2021-11A,

Class

E,

(LIBOR

USD

3

Month

+

5.35%),

8.06%,

10/20/34

...............

250

202,395

Madison

Park

Funding

XVIII

Ltd.,

Series

2015-18A,

Class

ARR,

(LIBOR

USD

3

Month

+

0.94%),

3.67%,

10/21/30

............

250

244,874

Neuberger

Berman

Loan

Advisers

CLO

35

Ltd.,

Series

2019-35A,

Class

C,

(LIBOR

USD

3

Month

+

2.60%),

5.34%,

01/19/33

............

250

233,208

OHA

Loan

Funding

Ltd.,

Series

2015-

1A,

Class

AR3,

(LIBOR

USD

3

Month

+

1.15%),

3.89%,

01/19/37

250

238,643

Palmer

Square

CLO

Ltd.,

Series

2021-

3A,

Class

A1,

(LIBOR

USD

3

Month

+

1.15%),

3.66%,

01/15/35

.....

250

238,797

Pikes

Peak

CLO

8,

Series

2021-8A,

Class

B,

(LIBOR

USD

3

Month

+

1.75%),

4.46%,

07/20/34

.......

250

235,799

TCW

CLO

AMR

Ltd.,

Series

2019-1A,

Class

ASNR,

(LIBOR

USD

3

Month

+

1.22%),

4.14%,

08/16/34

.....

250

240,385

Trestles

CLO

V

Ltd.,

Series

2021-5A,

Class

A1,

(LIBOR

USD

3

Month

+

1.17%),

3.88%,

10/20/34

.......

250

238,495

Trimaran

Cavu

Ltd.,

Series

2021-2A,

Class

D1,

(LIBOR

USD

3

Month

+

3.25%),

6.03%,

10/25/34

.......

250

231,109

3,544,659

Ireland

—

0.7%

Prodigy

Finance

DAC,

Series

2021-1A,

Class

A,

(LIBOR

USD

1

Month

+

1.25%),

4.33%,

07/25/51

(a)(b)

....

277

270,203

United

States

—

5.1%

(a)

Diameter

Capital

CLO

1

Ltd.,

Series

2021-1A,

Class

A1A,

(LIBOR

USD

3

Month

+

1.24%),

3.75%,

07/15/36

(b)

250

240,232

Home

Partners

of

America

Trust,

Series

2021-2,

Class

F,

3.80%,

12/17/26

.

488

419,425

Legacy

Mortgage

Asset

Trust,

Series

2019-SL2,

Class

M,

4.25%,

02/25/59

(b)

................

202

159,690

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Mosaic

Solar

Loans

LLC,

Series

2017-

2A,

Class

C,

2.00%,

06/22/43

...

USD

85

$

81,993

PRET

LLC,

Series

2021-NPL6,

Class

A1,

2.49%,

07/25/51

(c)

........

376

349,651

Progress

Residential

Trust,

Series

2021-SFR10,

Class

F,

4.61%,

12/17/40

.................

500

411,617

Regional

Management

Issuance

Trust,

Series

2022-1,

Class

A,

3.07%,

03/15/32

.................

100

90,377

Tricon

Residential

Trust,

Series

2021-

SFR1,

Class

F,

3.69%,

07/17/38

..

400

342,474

2,095,459

Total

Asset-Backed

Securities

—

14.4%

(Cost:

$6,378,526)

..............................

5,910,321

Corporate

Bonds

Australia

—

0.0%

FMG

Resources

August

2006

Pty.

Ltd.,

6.13%

,

04/15/32

(a)

...........

22

18,904

Belgium

—

0.8%

Anheuser-Busch

Cos.

LLC

4.70%,

02/01/36

............

4

3,605

4.90%,

02/01/46

............

24

20,858

Anheuser-Busch

InBev

Worldwide,

Inc.

4.75%,

01/23/29

............

87

84,751

5.88%,

06/15/35

............

31

30,992

KBC

Group

NV,

(EURIBOR

3

Month

+

0.72%),

0.38%

,

06/16/27

(b)(d)

....

EUR

200

171,219

311,425

Canada

—

0.1%

1011778

BC

ULC,

3.88%

,

01/15/28

(a)

USD

6

5,221

Rogers

Communications,

Inc.,

3.70%

,

11/15/49

..................

35

23,937

29,158

China

—

0.6%

NXP

BV

5.55%,

12/01/28

............

68

66,555

3.40%,

05/01/30

............

115

96,287

2.50%,

05/11/31

............

61

45,628

5.00%,

01/15/33

............

34

30,250

238,720

France

—

0.8%

(d)

Banque

Federative

du

Credit

Mutuel

SA,

0.10%

,

10/08/27

.........

EUR

100

81,742

BNP

Paribas

SA,

(EURIBOR

3

Month

+

0.80%),

0.38%

,

10/14/27

(b)

.....

100

83,702

Engie

SA,

1.75%

,

03/27/28

.......

100

88,617

Societe

Generale

SA,

(EURIBOR

3

Month

+

1.28%),

0.88%

,

09/22/28

(b)

100

81,921

335,982

Germany

—

0.8%

(d)

Commerzbank

AG,

(EURIBOR

3

Month

+

1.30%),

0.75%

,

03/24/26

(b)

....

100

89,028

Deutsche

Bank

AG,

(EURIBOR

3

Month

+

1.38%),

1.88%

,

02/23/28

(b)

200

166,683

E.ON

SE,

1.00%

,

10/07/25

.......

100

92,029

347,740

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

37

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

Italy

—

0.7%

(d)

Intesa

Sanpaolo

SpA,

1.50%

,

04/10/24

EUR

100

$

95,337

Iren

SpA

1.95%,

09/19/25

............

100

92,699

1.50%,

10/24/27

............

100

84,844

272,880

Japan

—

1.3%

Mitsubishi

UFJ

Financial

Group,

Inc.,

2.53%

,

09/13/23

............

USD

347

338,405

Takeda

Pharmaceutical

Co.

Ltd.,

5.00%

,

11/26/28

............

200

193,606

532,011

Spain

—

0.8%

(d)

Banco

de

Sabadell

SA,

(EUR

Swap

Annual

1

Year

+

1.55%),

1.13%

,

03/11/27

(b)

................

EUR

100

86,824

Banco

Santander

SA,

0.30%

,

10/04/26

200

170,702

CaixaBank

SA,

(EURIBOR

3

Month

+

0.85%),

0.38%

,

11/18/26

(b)

.....

100

85,602

343,128

United

Kingdom

—

1.3%

CNH

Industrial

NV,

4.50%

,

08/15/23

.

USD

188

186,874

National

Grid

plc,

0.25%

,

09/01/28

(d)

.

EUR

100

78,077

RELX

Capital,

Inc.

4.00%,

03/18/29

............

USD

44

40,408

3.00%,

05/22/30

............

59

49,776

SSE

plc

(d)

0.88%,

09/06/25

............

EUR

100

90,853

1.38%,

09/04/27

............

100

87,335

533,323

United

States

—

29.2%

AbbVie,

Inc.

4.55%,

03/15/35

............

USD

88

78,944

4.50%,

05/14/35

............

48

42,703

4.70%,

05/14/45

............

36

30,449

AEP

Texas,

Inc.,

5.25%

,

05/15/52

...

52

47,450

Aetna,

Inc.,

6.63%

,

06/15/36

......

7

7,138

Agilent

Technologies,

Inc.

3.05%,

09/22/26

............

34

31,285

2.75%,

09/15/29

............

8

6,721

2.10%,

06/04/30

............

5

3,920

Albertsons

Cos.,

Inc.

(a)

5.88%,

02/15/28

............

12

11,070

4.88%,

02/15/30

............

6

5,076

Alexandria

Real

Estate

Equities,

Inc.,

4.90%

,

12/15/30

............

29

27,432

Amazon.com,

Inc.,

4.05%

,

08/22/47

.

24

20,267

American

International

Group,

Inc.,

4.38%

,

06/30/50

............

27

21,606

American

Tower

Corp.

5.00%,

02/15/24

............

12

11,993

0.45%,

01/15/27

............

EUR

100

83,011

3.60%,

01/15/28

............

USD

111

98,492

3.80%,

08/15/29

............

33

28,948

2.10%,

06/15/30

............

39

29,874

Amgen,

Inc.

4.40%,

05/01/45

............

35

28,575

4.66%,

06/15/51

............

4

3,361

4.20%,

02/22/52

............

23

18,030

Aon

Corp.

3.75%,

05/02/29

............

14

12,592

2.80%,

05/15/30

............

47

38,968

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Apple,

Inc.,

2.80%

,

02/08/61

......

USD

37

$

23,034

Applied

Materials,

Inc.,

4.35%

,

04/01/47

.................

7

6,052

Aramark

Services,

Inc.,

5.00%

,

02/01/28

(a)

................

14

12,470

AT&T,

Inc.

4.30%,

02/15/30

............

53

48,425

2.75%,

06/01/31

............

33

26,416

4.50%,

05/15/35

............

141

122,116

4.75%,

05/15/46

............

70

58,670

4.50%,

03/09/48

............

11

8,681

3.80%,

12/01/57

............

37

24,995

Atlantic

City

Electric

Co.,

4.00%

,

10/15/28

.................

8

7,480

Atmos

Energy

Corp.,

2.85%

,

02/15/52

10

6,321

Autodesk,

Inc.,

2.40%

,

12/15/31

....

53

41,224

Baltimore

Gas

&

Electric

Co.,

3.50%

,

08/15/46

.................

74

54,500

Bank

of

America

Corp.

(b)

(LIBOR

USD

3

Month

+

0.79%),

3.00%,

12/20/23

..........

20

19,894

(SOFR

6

Month

+

1.46%),

1.49%,

05/19/24

...............

397

387,228

(LIBOR

USD

3

Month

+

0.87%),

2.46%,

10/22/25

..........

6

5,618

(SOFR

6

Month

+

1.32%),

2.69%,

04/22/32

...............

131

102,276

(SOFR

6

Month

+

1.33%),

2.97%,

02/04/33

...............

351

274,395

(SOFR

6

Month

+

1.83%),

4.57%,

04/27/33

...............

75

67,176

Baxter

International,

Inc.

2.60%,

08/15/26

............

33

29,852

2.54%,

02/01/32

............

7

5,449

Biogen,

Inc.

2.25%,

05/01/30

............

23

18,112

5.20%,

09/15/45

............

9

8,035

3.15%,

05/01/50

............

17

10,952

Blackstone

Private

Credit

Fund,

4.00%

,

01/15/29

.................

42

33,644

Broadcom,

Inc.

4.15%,

11/15/30

............

17

14,714

4.30%,

11/15/32

............

78

65,492

Broadridge

Financial

Solutions,

Inc.,

2.60%

,

05/01/31

............

5

3,960

Burlington

Northern

Santa

Fe

LLC,

3.30%

,

09/15/51

............

33

23,499

Cameron

LNG

LLC,

3.30%

,

01/15/35

(a)

220

173,028

Carrier

Global

Corp.,

2.24%

,

02/15/25

5

4,672

CCO

Holdings

LLC

(a)

5.38%,

06/01/29

............

14

12,254

4.75%,

03/01/30

............

16

12,980

Cedar

Fair

LP

5.50%,

05/01/25

(a)

...........

8

7,695

5.38%,

04/15/27

............

12

11,147

5.25%,

07/15/29

............

12

10,297

CenterPoint

Energy

Houston

Electric

LLC

Series

AE,

2.35%,

04/01/31

....

10

8,158

Series

AF,

3.35%,

04/01/51

....

15

10,754

Charter

Communications

Operating

LLC

5.13%,

07/01/49

............

8

5,864

4.80%,

03/01/50

............

113

81,517

3.90%,

06/01/52

............

15

9,287

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

38

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

5.25%,

04/01/53

............

USD

28

$

21,441

4.40%,

12/01/61

............

15

9,556

3.95%,

06/30/62

............

26

15,418

5.50%,

04/01/63

............

21

15,866

Citigroup,

Inc.

(b)

(SOFR

6

Month

+

0.69%),

2.01%,

01/25/26

...............

48

44,109

(SOFR

6

Month

+

2.09%),

4.91%,

05/24/33

...............

106

97,519

Citizens

Financial

Group,

Inc.,

3.25%

,

04/30/30

.................

6

4,908

Clear

Channel

Outdoor

Holdings,

Inc.,

5.13%

,

08/15/27

(a)

...........

16

13,516

Comcast

Corp.,

3.40%

,

07/15/46

...

58

40,925

Commercial

Metals

Co.,

4.38%

,

03/15/32

.................

14

11,060

Commonwealth

Edison

Co.

4.00%,

03/01/48

............

18

14,419

Series

133,

3.85%,

03/15/52

....

24

18,682

Cox

Communications,

Inc.,

3.15%

,

08/15/24

(a)

................

14

13,402

Crown

Castle,

Inc.,

2.50%

,

07/15/31

.

36

27,741

CSX

Corp.

2.50%,

05/15/51

............

26

15,562

4.25%,

11/01/66

............

10

7,600

CVS

Health

Corp.

4.30%,

03/25/28

............

158

149,019

3.25%,

08/15/29

............

43

37,629

5.13%,

07/20/45

............

40

35,026

Dell

International

LLC,

6.02%

,

06/15/26

67

67,270

Duke

Realty

LP,

1.75%

,

02/01/31

...

52

39,745

DXC

Technology

Co.,

2.38%

,

09/15/28

9

7,352

Eaton

Corp.,

4.70%

,

08/23/52

.....

10

8,783

eBay,

Inc.,

1.40%

,

05/10/26

.......

5

4,374

Ecolab,

Inc.,

3.95%

,

12/01/47

.....

16

13,111

Electronic

Arts,

Inc.,

1.85%

,

02/15/31

20

15,416

Entergy

Louisiana

LLC

4.95%,

01/15/45

............

97

86,981

4.20%,

09/01/48

............

41

32,962

Enterprise

Products

Operating

LLC,

3.30%

,

02/15/53

............

45

29,276

Equifax,

Inc.,

2.35%

,

09/15/31

.....

5

3,756

Equinix,

Inc.

0.25%,

03/15/27

............

EUR

100

82,537

3.20%,

11/18/29

............

USD

63

53,259

2.15%,

07/15/30

............

99

75,900

2.50%,

05/15/31

............

21

16,178

3.90%,

04/15/32

............

115

97,689

Exelon

Corp.,

4.45%

,

04/15/46

.....

32

26,120

Expedia

Group,

Inc.,

2.95%

,

03/15/31

2

1,552

FactSet

Research

Systems,

Inc.,

3.45%

,

03/01/32

............

12

9,779

Fiserv,

Inc.,

3.50%

,

07/01/29

......

7

6,090

Florida

Power

&

Light

Co.,

4.05%

,

10/01/44

.................

86

70,518

Ford

Motor

Co.,

3.25%

,

02/12/32

...

6

4,322

General

Motors

Co.,

5.40%

,

10/15/29

20

18,441

General

Motors

Financial

Co.,

Inc.

3.25%,

01/05/23

............

470

467,380

3.95%,

04/13/24

............

5

4,877

4.00%,

01/15/25

............

632

607,153

Gilead

Sciences,

Inc.

4.60%,

09/01/35

............

38

34,346

4.75%,

03/01/46

............

26

22,628

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Global

Payments,

Inc.

2.65%,

02/15/25

............

USD

199

$

185,987

1.20%,

03/01/26

............

293

252,169

4.45%,

06/01/28

............

160

146,271

3.20%,

08/15/29

............

57

47,494

GLP

Capital

LP

4.00%,

01/15/30

............

34

28,395

4.00%,

01/15/31

............

27

22,070

3.25%,

01/15/32

............

40

30,069

Goldman

Sachs

Group,

Inc.

(The)

(b)

(SOFR

6

Month

+

0.54%),

0.63%,

11/17/23

...............

72

71,564

(SOFR

6

Month

+

0.51%),

0.66%,

09/10/24

...............

33

31,413

(LIBOR

USD

3

Month

+

1.17%),

4.08%,

05/15/26

..........

7

6,945

(SOFR

6

Month

+

1.11%),

2.64%,

02/24/28

...............

6

5,206

(SOFR

6

Month

+

1.85%),

3.62%,

03/15/28

...............

335

304,867

(LIBOR

USD

3

Month

+

1.51%),

3.69%,

06/05/28

..........

179

161,856

(SOFR

6

Month

+

1.28%),

2.62%,

04/22/32

...............

398

308,501

Hasbro,

Inc.,

3.90%

,

11/19/29

.....

22

19,242

HCA,

Inc.

3.50%,

09/01/30

............

9

7,432

2.38%,

07/15/31

............

82

60,657

5.50%,

06/15/47

............

28

23,654

Herc

Holdings,

Inc.,

5.50%

,

07/15/27

(a)

14

12,600

Hewlett

Packard

Enterprise

Co.

1.45%,

04/01/24

............

12

11,391

4.90%,

10/15/25

(c)

...........

38

37,665

1.75%,

04/01/26

............

34

30,249

Humana,

Inc.,

4.50%

,

04/01/25

....

10

9,857

Hyundai

Capital

America,

2.85%

,

11/01/22

(a)

................

472

471,325

iHeartCommunications,

Inc.,

5.25%

,

08/15/27

(a)

................

8

6,834

Intel

Corp.,

4.10%

,

05/19/46

......

44

35,160

Intercontinental

Exchange,

Inc.,

1.85%

,

09/15/32

.................

21

15,472

International

Business

Machines

Corp.,

7.00%

,

10/30/25

............

8

8,485

Interpublic

Group

of

Cos.,

Inc.

(The)

4.65%,

10/01/28

............

8

7,398

4.75%,

03/30/30

............

8

7,312

JPMorgan

Chase

&

Co.

(b)

(SOFR

6

Month

+

1.56%),

4.32%,

04/26/28

...............

75

70,283

(SOFR

6

Month

+

1.25%),

2.58%,

04/22/32

...............

10

7,752

(SOFR

6

Month

+

1.26%),

2.96%,

01/25/33

...............

16

12,577

(SOFR

6

Month

+

1.80%),

4.59%,

04/26/33

...............

116

104,378

Juniper

Networks,

Inc.,

2.00%

,

12/10/30

.................

5

3,689

KAR

Auction

Services,

Inc.,

5.13%

,

06/01/25

(a)

................

3

2,896

KLA

Corp.

4.10%,

03/15/29

............

29

27,555

3.30%,

03/01/50

............

36

25,287

5.25%,

07/15/62

............

25

22,977

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

39

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

L3Harris

Technologies,

Inc.

2.90%,

12/15/29

............

USD

72

$

60,811

1.80%,

01/15/31

............

141

105,477

Lam

Research

Corp.,

4.88%

,

03/15/49

25

23,054

Lamar

Media

Corp.,

3.75%

,

02/15/28

6

5,241

Level

3

Financing,

Inc.,

4.63%

,

09/15/27

(a)

................

1

828

Lowe's

Cos.,

Inc.

1.30%,

04/15/28

............

61

49,241

5.50%,

10/15/35

............

8

7,662

2.80%,

09/15/41

............

11

7,006

LYB

International

Finance

III

LLC,

4.20%

,

05/01/50

............

16

11,488

Marsh

&

McLennan

Cos.,

Inc.,

2.25%

,

11/15/30

..................

27

21,424

Masonite

International

Corp.,

5.38%

,

02/01/28

(a)

................

6

5,307

Medline

Borrower

LP,

3.88%

,

04/01/29

(a)

................

65

52,110

Micron

Technology,

Inc.,

4.66%

,

02/15/30

.................

4

3,549

Microsoft

Corp.,

3.70%

,

08/08/46

...

53

43,918

MidAmerican

Energy

Co.

3.65%,

04/15/29

............

63

58,089

4.25%,

07/15/49

............

35

29,124

Moody's

Corp.

4.25%,

08/08/32

............

57

51,656

3.75%,

02/25/52

............

8

5,919

Morgan

Stanley

3.13%,

01/23/23

............

124

123,593

(SOFR

6

Month

+

0.47%),

0.56%,

11/10/23

(b)

..............

15

14,918

(SOFR

6

Month

+

0.46%),

0.53%,

01/25/24

(b)

..............

17

16,723

(SOFR

6

Month

+

1.61%),

4.21%,

04/20/28

(b)

..............

151

141,293

(LIBOR

USD

3

Month

+

1.34%),

3.59%,

07/22/28

(b)

.........

66

59,373

(LIBOR

USD

3

Month

+

1.63%),

4.43%,

01/23/30

(b)

.........

69

63,429

(SOFR

6

Month

+

1.14%),

2.70%,

01/22/31

(b)

..............

347

281,337

(SOFR

6

Month

+

3.12%),

3.62%,

04/01/31

(b)

..............

172

148,648

Motorola

Solutions,

Inc.

2.30%,

11/15/30

............

41

30,807

5.60%,

06/01/32

............

98

93,687

5.50%,

09/01/44

............

36

30,600

National

Retail

Properties,

Inc.,

3.00%

,

04/15/52

.................

34

20,506

Navient

Corp.

5.88%,

10/25/24

............

6

5,686

6.75%,

06/25/25

............

6

5,617

6.75%,

06/15/26

............

6

5,446

Newmont

Corp.

2.80%,

10/01/29

............

13

10,762

2.25%,

10/01/30

............

41

31,715

Nexstar

Media,

Inc.,

5.63%

,

07/15/27

(a)

14

12,870

Norfolk

Southern

Corp.

3.65%,

08/01/25

............

4

3,849

3.00%,

03/15/32

............

39

32,610

3.94%,

11/01/47

............

27

20,944

3.05%,

05/15/50

............

16

10,427

4.55%,

06/01/53

............

20

16,954

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Northern

States

Power

Co.,

2.60%

,

06/01/51

.................

USD

37

$

23,007

NRG

Energy,

Inc.

2.45%,

12/02/27

(a)

...........

74

60,580

5.75%,

01/15/28

............

8

7,383

5.25%,

06/15/29

(a)

...........

8

7,000

NSTAR

Electric

Co.,

3.95%

,

04/01/30

13

12,090

Nucor

Corp.,

3.95%

,

05/01/28

.....

35

32,189

Ohio

Power

Co.

Series

P,

2.60%,

04/01/30

.....

5

4,130

Series

R,

2.90%,

10/01/51

.....

22

13,750

Omnicom

Group,

Inc.,

2.60%

,

08/01/31

5

3,925

Oncor

Electric

Delivery

Co.

LLC

3.70%,

11/15/28

............

52

48,217

3.10%,

09/15/49

............

36

24,895

Oracle

Corp.

3.60%,

04/01/40

............

132

89,589

4.00%,

07/15/46

............

14

9,462

4.00%,

11/15/47

............

4

2,680

3.60%,

04/01/50

............

99

61,945

3.95%,

03/25/51

............

11

7,295

Outfront

Media

Capital

LLC,

5.00%

,

08/15/27

(a)

................

14

12,230

Owens

Corning,

3.95%

,

08/15/29

...

26

23,269

Paramount

Global,

4.38%

,

03/15/43

.

20

13,327

PECO

Energy

Co.

2.85%,

09/15/51

............

41

26,392

4.38%,

08/15/52

............

10

8,484

Pfizer,

Inc.,

1.75%

,

08/18/31

......

38

29,656

Piedmont

Natural

Gas

Co.,

Inc.,

2.50%

,

03/15/31

.................

11

8,672

Post

Holdings,

Inc.

(a)

5.63%,

01/15/28

............

12

10,953

5.50%,

12/15/29

............

8

6,916

Prologis

LP

3.25%,

10/01/26

............

22

20,499

3.88%,

09/15/28

............

7

6,511

Public

Service

Electric

&

Gas

Co.

3.70%,

05/01/28

............

28

26,138

3.60%,

12/01/47

............

6

4,480

QUALCOMM,

Inc.,

4.30%

,

05/20/47

.

25

21,198

Realty

Income

Corp.,

3.25%

,

01/15/31

6

5,120

Republic

Services,

Inc.,

3.95%

,

05/15/28

.................

24

22,458

RHP

Hotel

Properties

LP,

4.75%

,

10/15/27

.................

8

6,960

Ryder

System,

Inc.,

4.63%

,

06/01/25

157

153,996

Salesforce,

Inc.,

3.05%

,

07/15/61

...

27

16,848

Select

Medical

Corp.,

6.25%

,

08/15/26

(a)

................

6

5,646

ServiceNow,

Inc.,

1.40%

,

09/01/30

..

68

50,066

Sherwin-Williams

Co.

(The),

2.30%

,

05/15/30

.................

23

18,371

Sirius

XM

Radio,

Inc.,

5.50%

,

07/01/29

(a)

................

14

12,593

Southern

California

Edison

Co.,

2.25%

,

06/01/30

.................

43

34,064

Southwestern

Public

Service

Co.,

Series

8,

3.15%

,

05/01/50

......

26

17,738

Standard

Industries,

Inc.

(a)

5.00%,

02/15/27

............

6

5,310

4.75%,

01/15/28

............

6

5,069

Synchrony

Financial,

4.50%

,

07/23/25

18

17,167

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

40

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

TEGNA,

Inc.

4.63%,

03/15/28

............

USD

6

$

5,540

5.00%,

09/15/29

............

6

5,523

Tenet

Healthcare

Corp.

(a)

4.88%,

01/01/26

............

22

20,444

5.13%,

11/01/27

............

6

5,384

4.38%,

01/15/30

............

10

8,347

T-Mobile

USA,

Inc.

1.50%,

02/15/26

............

69

60,562

4.75%,

02/01/28

............

367

346,452

2.05%,

02/15/28

............

232

192,514

3.88%,

04/15/30

............

117

103,781

Transcontinental

Gas

Pipe

Line

Co.

LLC

4.60%,

03/15/48

............

42

34,604

3.95%,

05/15/50

............

38

28,062

Union

Pacific

Corp.

3.55%,

05/20/61

............

40

27,847

2.97%,

09/16/62

............

9

5,448

UnitedHealth

Group,

Inc.

4.25%,

06/15/48

............

7

5,798

2.90%,

05/15/50

............

28

18,390

Verizon

Communications,

Inc.

2.10%,

03/22/28

............

133

112,280

3.15%,

03/22/30

............

146

124,186

2.55%,

03/21/31

............

180

143,717

4.27%,

01/15/36

............

67

57,167

4.86%,

08/21/46

............

34

29,324

3.70%,

03/22/61

............

12

8,147

VICI

Properties

LP,

4.95%

,

02/15/30

.

38

34,341

VMware,

Inc.,

4.70%

,

05/15/30

....

69

62,072

Walt

Disney

Co.

(The),

4.75%

,

09/15/44

.................

35

31,249

Waste

Pro

USA,

Inc.,

5.50%

,

02/15/26

(a)

................

6

5,271

Wells

Fargo

&

Co.,

(SOFR

6

Month

+

1.50%),

3.35%

,

03/02/33

(b)

.....

30

24,329

Western

Digital

Corp.,

2.85%

,

02/01/29

67

52,068

WP

Carey,

Inc.

4.00%,

02/01/25

............

12

11,607

4.25%,

10/01/26

............

8

7,538

3.85%,

07/15/29

............

8

7,057

2.40%,

02/01/31

............

13

9,978

2.45%,

02/01/32

............

18

13,432

12,016,790

Total

Corporate

Bonds

—

36.4%

(Cost:

$17,607,798)

..............................

14,980,061

Foreign

Agency

Obligations

Germany

—

0.8%

Kreditanstalt

fuer

Wiederaufbau

(d)

2.00%,

11/15/29

............

EUR

223

209,051

1.38%,

06/07/32

............

127

109,444

318,495

Security

Par

(000)

Par

(000)

Value

Supranational

—

1.1%

European

Investment

Bank

(d)

2.25%,

03/15/30

............

EUR

220

$

207,314

1.50%,

06/15/32

............

281

242,361

449,675

Total

Foreign

Agency

Obligations

—

1.9%

(Cost:

$878,612)

................................

768,170

Foreign

Government

Obligations

Belgium

—

1.1%

Kingdom

of

Belgium,

1.25%

,

04/22/33

(a)

(d)

......................

530

449,564

France

—

0.3%

French

Republic,

0.50%

,

06/25/44

(a)(d)

220

131,216

Ireland

—

1.0%

Republic

of

Ireland,

1.35%

,

03/18/31

(d)

450

404,360

Mexico

—

0.4%

United

Mexican

States,

2.66%

,

05/24/31

.................

USD

200

153,400

Netherlands

—

0.3%

Kingdom

of

Netherlands,

0.50%

,

01/15/40

(a)(d)

...............

EUR

170

117,887

Panama

—

0.4%

Republic

of

Panama,

3.88%

,

03/17/28

USD

200

181,225

Peru

—

0.1%

Republic

of

Peru,

3.55%

,

03/10/51

..

35

23,271

United

Kingdom

—

0.4%

U.K.

Treasury

Bonds,

0.88%

,

07/31/33

(d)

................

GBP

226

179,363

Uruguay

—

0.0%

Oriental

Republic

of

Uruguay,

5.10%

,

06/18/50

.................

USD

25

22,770

Total

Foreign

Government

Obligations

—

4.0%

(Cost:

$2,257,104)

..............................

1,663,056

Municipal

Bonds

California

-

0.4%

Bay

Area

Toll

Authority

,

Series

2010S-1,

RB,

7.04%, 04/01/50

.........

20

24,601

Los

Angeles

Community

College

District

,

Series

2010E,

GO,

6.60%, 08/01/42

............

5

5,627

Los

Angeles

Unified

School

District

,

Series

2010RY,

GO,

6.76%, 07/01/34

............

20

22,026

State

of

California

,

Series

2018,

GO,

4.60%, 04/01/38

............

70

65,136

University

of

California

,

Series

2012AD,

RB,

4.86%, 05/15/12

.........

5

4,155

121,545

Illinois

-

0.1%

State

of

Illinois

,

Series

2003,

GO,

5.10%, 06/01/33

............

40

38,023

New

Jersey

-

0.0%

New

Jersey

Turnpike

Authority

,

Series

2009F,

RB,

7.41%, 01/01/40

....

8

9,738

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

41

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

Security

Par

(000)

Par

(000)

Value

New

York

-

0.0%

Metropolitan

Transportation

Authority

,

Series

2009A-1,

RB,

5.87%, 11/15/39

............

USD

10

$

9,998

New

York

City

Municipal

Water

Finance

Authority

,

Series

2010EE,

RB,

6.01%, 06/15/42

............

5

5,443

Port

Authority

of

New

York

&

New

Jersey

,

Series

2011-168,

RB,

4.93%, 10/01/51

............

15

14,237

29,678

Ohio

-

0.0%

American

Municipal

Power,

Inc.

,

Series

2010A,

RB,

8.08%, 02/15/50

....

10

13,179

Texas

-

0.1%

City

of

San

Antonio

Electric

&

Gas

Systems

,

Series

2010A,

RB,

5.81%, 02/01/41

............

10

10,394

State

of

Texas

,

Series

2009A,

GO,

5.52%, 04/01/39

............

15

15,671

26,065

Total

Municipal

Bonds

—

0.6%

(Cost:

$311,124)

................................

238,228

Non-Agency

Mortgage-Backed

Securities

Collateralized

Mortgage

Obligations

—

1.0%

United

States

—

1.0%

(b)

Alternative

Loan

Trust,

Series

2006-

OC10,

Class

2A3,

(LIBOR

USD

1

Month

+

0.46%),

3.54%,

11/25/36

.

190

167,170

Federal

National

Mortgage

Association

Variable

Rate

Notes,

Series

2021-R02,

Class

2B1,

(SOFR

30

Day

Average

+

3.30%),

5.58%,

11/25/41

(a)

................

296

267,171

434,341

Commercial

Mortgage-Backed

Securities

—

5.5%

(a)

Cayman

Islands

—

1.2%

(b)

MF1,

Series

2021-W10,

Class

G,

(1

Month

CME

Term

SOFR

+

4.22%),

7.07%,

12/15/34

............

250

239,458

STWD

Mortgage

Trust,

Series

2021-

LIH,

Class

F,

(LIBOR

USD

1

Month

+

3.55%),

6.37%,

11/15/36

.....

250

229,859

469,317

United

States

—

4.3%

1211

Avenue

of

the

Americas

Trust,

Series

2015-1211,

Class

A1A2,

3.90%,

08/10/35

............

250

235,591

Commercial

Mortgage

Trust,

Series

2013-300P,

Class

D,

4.54%,

08/10/30

(b)

................

150

140,857

Grace

Trust,

Series

2020-GRCE,

Class

D,

2.77%,

12/10/40

(b)

.........

250

174,170

GS

Mortgage

Securities

Corp.

Trust,

Series

2021-DM,

Class

F,

(LIBOR

USD

1

Month

+

3.44%),

6.25%,

11/15/36

(b)

................

250

228,171

JPMorgan

Chase

Commercial

Mortgage

Securities

Trust

(b)

Series

2021-MHC,

Class

D,

(LIBOR

USD

1

Month

+

1.70%),

4.52%,

04/15/38

...............

250

236,213

Security

Par

(000)

Par

(000)

Value

United

States

(continued)

Series

2022-OPO,

Class

D,

3.56%,

01/05/39

...............

USD

160

$

125,538

MHC

Commercial

Mortgage

Trust,

Series

2021-MHC,

Class

F,

(LIBOR

USD

1

Month

+

2.60%),

5.42%,

04/15/38

(b)

................

250

232,081

SUMIT

Mortgage

Trust,

Series

2022-

BVUE,

Class

D,

2.99%,

02/12/41

(b)

40

28,974

Velocity

Commercial

Capital

Loan

Trust,

Series

2021-4,

Class

M4,

4.48%,

12/26/51

(b)

...........

479

384,382

1,785,977

2,255,294

Total

Non-Agency

Mortgage-Backed

Securities

—

6.5%

(Cost:

$3,020,900)

..............................

2,689,635

Preferred

Securities

Capital

Trusts

—

0.2%

United

States

—

0.2%

(b)(e)

Charles

Schwab

Corp.

(The),

Series

H

,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%),

4.00%

.............

8

5,877

Citigroup,

Inc.

,

(US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.42%),

3.88%

.

21

17,317

State

Street

Corp.,

Series

H

,

(LIBOR

USD

3

Month

+

2.54%),

5.63%

..

53

48,892

72,086

Total

Preferred

Securities

—

0.2%

(Cost:

$84,190)

................................

72,086

U.S.

Government

Sponsored

Agency

Securities

(f)

Mortgage-Backed

Securities

—

41.3%

Federal

National

Mortgage

Association,

3.00%, 12/01/50

............

724

638,395

Government

National

Mortgage

Association

2.00%

,

 08/20/50

-

11/20/50

...

176

147,647

2.50%

,

 10/20/51

-

12/20/51

...

310

267,255

3.00%

,

 03/20/52

..........

286

253,316

3.50%

,

 03/20/52

..........

69

62,861

4.00%

,

 03/20/52

..........

16

15,338

2.00%

,

 10/15/52

(f)

.........

514

427,945

2.50%

,

 10/15/52

(f)

.........

403

346,226

3.00%

,

 10/15/52

-

11/15/52

(f)

..

731

645,834

3.50%

,

 10/15/52

-

11/15/52

(f)

..

688

625,177

4.00%

,

 10/15/52

-

11/15/52

(f)

..

509

474,815

4.50%

,

 10/15/52

-

11/15/52

(f)

..

131

125,348

5.00%

,

 10/15/52

-

11/15/52

(f)

..

59

57,698

Uniform

Mortgage-Backed

Securities

1.50%

,

 10/25/37

-

10/25/52

(f)

..

783

635,439

2.00%

,

 10/25/37

-

11/25/52

(f)

..

671

590,881

2.50%

,

 10/25/37

-

11/25/52

(f)

..

958

826,118

3.00%

,

 10/25/37

-

11/25/52

(f)

..

900

792,435

3.50%

,

 10/25/37

-

11/25/52

(f)

..

80

75,279

4.00%

,

 09/01/47

-

04/01/52

...

1,206

1,127,837

4.50%

,

 06/01/50

..........

253

243,978

2.00%

,

 10/01/51

-

11/01/51

...

2,857

2,320,136

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

42

(Percentages

shown

are

based

on

Net

Assets)

Schedule

of

Investments

(continued)

September

30,

2022

x

Security

Par

(000)

Par

(000)

Value

Mortgage-Backed

Securities

(continued)

2.50%

,

 11/01/51

-

12/01/51

...

USD

2,777

$

2,342,200

3.00%

,

 11/01/51

..........

254

226,452

3.50%

,

 11/01/51

..........

952

881,472

4.00%

,

 10/25/52

-

11/25/52

(f)

..

1,654

1,534,646

4.50%

,

 10/25/52

-

11/25/52

(f)

..

780

742,963

5.00%

,

 10/25/52

-

11/25/52

(f)

..

605

589,244

17,016,935

Total

U.S.

Government

Sponsored

Agency

Securities

—

41.3%  

(Cost:

$18,479,679)

..............................

17,016,935

U.S.

Treasury

Obligations

U.S.

Treasury

Bonds

1.13%, 05/15/40

-

08/15/40

.....

412

256,333

1.38%, 11/15/40

............

206

133,168

1.75%, 08/15/41

............

206

140,844

2.75%, 11/15/47

............

298

238,377

3.00%, 02/15/48

-

08/15/52

.....

339

286,261

2.38%, 05/15/51

............

212

158,602

2.00%, 08/15/51

............

63

42,690

1.88%, 11/15/51

............

3

1,852

2.88%, 05/15/52

............

226

189,522

U.S.

Treasury

Notes

2.50%, 04/30/24

............

1,066

1,036,269

0.75%, 11/15/24

............

42

39,027

0.88%, 09/30/26

............

92

80,935

1.13%, 10/31/26

............

58

51,423

1.50%, 01/31/27

............

7

6,275

1.88%, 02/28/27

-

02/28/29

.....

28

25,378

0.63%, 03/31/27

............

189

162,134

0.50%, 04/30/27

-

05/31/27

.....

412

349,909

2.75%, 04/30/27

-

08/15/32

.....

320

300,262

4.13%, 09/30/27

............

29

29,095

1.25%, 03/31/28

............

27

23,280

1.75%, 01/31/29

............

10

8,732

2.88%, 04/30/29

............

65

60,678

2.63%, 07/31/29

............

19

17,459

3.13%, 08/31/29

............

11

10,440

Total

U.S.

Treasury

Obligations

—

8.9%

(Cost:

$4,348,791)

..............................

3,648,945

Total

Long-Term

Investments

—

114.2%

(Cost:

$53,366,724)

..............................

46,987,437

Security

Shares

Shares

Value

Short-Term

Securities

Money

Market

Funds

—

4.9%

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class,

2.79%

(g)(h)

....

2,006,214

$

2,006,214

Total

Short-Term

Securities

—

4.9%

(Cost:

$2,006,214)

..............................

2,006,214

Total

Options

Purchased

—

0.3%

(Cost:

$67,945

)

................................

132,251

Total

Investments

Before

Options

Written

and

TBA

Sale

Commitments

—

119.4%

(Cost:

$55,440,883)

..............................

49,125,902

Total

Options

Written

—

(0.9)%

(Premiums

Received

—

$(201,746))

..................

(351,013)

Par

(000)

Pa

r

(

000)

TBA

Sale

Commitments

(f)

Government

National

Mortgage

Association

2.50%

,

 10/15/52

............

USD

(5)

(4,296)

3.00%

,

 10/15/52

............

(18)

(16,170)

3.50%

,

 10/15/52

-

11/15/52

.....

(129)

(117,304)

Uniform

Mortgage-Backed

Securities

2.00%

,

 10/25/37

-

10/25/52

.....

(60)

(52,366)

2.50%

,

 10/25/37

-

11/25/52

.....

(2,008)

(1,686,060)

1.50%

,

 11/25/37

-

11/25/52

.....

(7)

(5,731)

3.00%

,

 11/25/37

-

11/25/52

.....

(945)

(822,368)

3.50%

,

 10/25/52

............

(343)

(308,673)

4.00%

,

 10/25/52

-

11/25/52

.....

(1,697)

(1,574,356)

4.50%

,

 10/25/52

............

(678)

(645,848)

5.00%

,

 10/25/52

............

(380)

(370,146)

Total

TBA

Sale

Commitments

—

(13.6)%

(Proceeds:

$(5,786,850))

..........................

(5,603,318)

Total

Investments

Net

of

Options

Written

and

TBA

Sale

Commitments

—

104.9%

(Cost:

$49,452,287)

..............................

43,171,571

Liabilities

in

Excess

of

Other

Assets

—

(4.9)%

............

(2,014,833)

Net

Assets

—

100.0%

..............................

$

41,156,738

(a)

Security

exempt

from

registration

pursuant

to

Rule

144A

under

the

Securities

Act

of

1933,

as

amended.

These

securities

may

be

resold

in

transactions

exempt

from

registration

to

qualified

institutional

investors.

(b)

Variable

rate

security.

Interest

rate

resets

periodically.

The

rate

shown

is

the

effective

interest

rate

as

of

period

end.

Security

description

also

includes

the

reference

rate

and

spread

if

published

and

available.

(c)

Step

coupon

security.

Coupon

rate

will

either

increase

(step-up

bond)

or

decrease

(step-down

bond)

at

regular

intervals

until

maturity.

Interest

rate

shown

reflects

the

rate

currently

in

effect.

(d)

This

security

may

be

resold

to

qualified

foreign

investors

and

foreign

institutional

buyers

under

Regulation

S

of

the

Securities

Act

of

1933.

(e)

Perpetual

security

with

no

stated

maturity

date.

(f)

Represents

or

includes

a

TBA

transaction.

(g)

Annualized

7-day

yield

as

of

period

end.

(h)

Affiliate

of

the

Fund.

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

43

Schedule

of

Investments

(continued)

September

30,

2022

Affiliates

Investments

in

issuers

considered

to

be

affiliate(s)

of

the

Fund

during

the

period

ended

September

30,

2022

for

purposes

of

Section

2(a)(3)

of

the

Investment

Company

Act

of

1940,

as

amended,

were

as

follows:

Affiliated

Issuer

Value

at

10/18/21

(a)

Purchases

at

Cost

Proceeds

from

Sale

Net

Realized

Gain

(Loss)

Change

in

Unrealized

Appreciation

(Depreciation)

Value

at

09/30/22

Shares

Held

at

09/30/22

Income

Capital

Gain

Distributions

from

Underlying

Funds

BlackRock

Liquidity

Funds,

T-Fund,

Institutional

Class

...

$

—

$

2,006,214

(b)

$

—

$

—

$

—

$

2,006,214

2,006,214

$

14,187

$

—

—

—

(a)

Commencement

of

operations.

(b)

Represents

net

amount

purchased

(sold).

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

44

Schedule

of

Investments

(continued)

September

30,

2022

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

U.S.

Treasury

10

Year

Note

...................................................

14

12/20/22

$

1,569

$

(71,677)

U.S.

Treasury

Long

Bond

....................................................

12

12/20/22

1,518

(84,949)

U.S.

Treasury

Ultra

Bond

....................................................

7

12/20/22

957

(51,792)

U.S.

Treasury

2

Year

Note

....................................................

7

12/30/22

1,437

(12,474)

U.S.

Treasury

5

Year

Note

....................................................

37

12/30/22

3,975

(81,561)

(302,453)

Short

Contracts

Euro-

Bobl

...............................................................

12

12/08/22

1,408

34,873

Euro-BTP

...............................................................

4

12/08/22

439

8,977

Euro-Bund

..............................................................

1

12/08/22

136

(1,689)

Euro-

Buxl

...............................................................

1

12/08/22

144

11,655

Euro-OAT

...............................................................

9

12/08/22

1,165

54,512

Euro-Schatz

.............................................................

1

12/08/22

105

1,077

U.S.

Treasury

10

Year

Ultra

Note

...............................................

1

12/20/22

119

343

Long

Gilt

...............................................................

2

12/28/22

215

29,533

3

Month

SOFR

...........................................................

9

06/20/23

2,150

2,006

141,287

$

(161,166)

Forward

Foreign

Currency

Exchange

Contracts

Currency

Purchased

Currency

Sold

Counterparty

Settlement

Date

Unrealized

Appreciation  

(Depreciation)

EUR

209,000

GBP

182,283

Deutsche

Bank

AG

12/21/22

$

2,352

GBP

192,513

EUR

212,000

JPMorgan

Chase

Bank

NA

12/21/22

6,126

USD

354,854

EUR

357,855

Deutsche

Bank

AG

12/21/22

1,915

USD

4,181,797

EUR

4,160,000

HSBC

Bank

plc

12/21/22

78,951

USD

310,480

EUR

308,379

UBS

AG

12/21/22

6,339

USD

191,992

GBP

167,000

Bank

of

America

NA

12/21/22

5,300

100,983

EUR

212,000

GBP

190,728

Morgan

Stanley

&

Co.

International

plc

12/21/22

(4,131)

EUR

206,000

USD

203,946

Morgan

Stanley

&

Co.

International

plc

12/21/22

(776)

JPY

148,312

USD

1,038

Morgan

Stanley

&

Co.

International

plc

12/21/22

(4)

(4,911)

$

96,072

OTC

Currency

Options

Purchased

Description

Counterparty

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EUR

Currency

...........................

Deutsche

Bank

AG

10/24/22

USD

0.98

EUR

884

$

11,608

$

—

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

45

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Interest

Rate

Swaptions

Purchased

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.96%

Semi-Annual

Morgan

Stanley

&

Co.

International

plc

09/03/24

2.96

%

USD

104

$

3,668

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.25%

Semi-Annual

Goldman

Sachs

International

09/23/24

3.25

USD

21

980

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.28%

Semi-Annual

Goldman

Sachs

International

09/23/24

3.28

USD

82

3,879

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.14%

Semi-Annual

BNP

Paribas

SA

09/23/25

3.14

USD

38

1,860

10,387

Put

10-Year

Interest

Rate

Swap

(a)

2.51%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

08/10/23

2.51

USD

522

46,909

10-Year

Interest

Rate

Swap

(a)

2.48%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

08/10/23

2.48

USD

522

47,934

10-Year

Interest

Rate

Swap

(a)

2.96%

Semi-Annual

1

day

SOFR

Annual

Morgan

Stanley

&

Co.

International

plc

09/03/24

2.96

USD

104

7,158

10-Year

Interest

Rate

Swap

(a)

3.28%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

09/23/24

3.28

USD

82

4,579

10-Year

Interest

Rate

Swap

(a)

3.25%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

09/23/24

3.25

USD

21

1,221

10-Year

Interest

Rate

Swap

(a)

3.14%

Semi-Annual

1

day

SOFR

Annual

BNP

Paribas

SA

09/23/25

3.14

USD

38

2,455

110,256

$

120,643

(a)

Forward

settling

swaption.

Exchange-Traded

Options

Written

Description

Number

of

Contracts

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Call

3

Month

SOFR

Interest

Futures

...................

18

03/10/23

USD

96.25

USD

4,500

$

(5,963)

Put

3

Month

SOFR

Interest

Futures

...................

18

03/10/23

USD

96.25

USD

4,500

(35,662)

$

(41,625)

OTC

Currency

Options

Written

Description

Counterparty

Expiration

Date

Exercise

Price

Notional

Amount

(000)

Value

Put

EUR

Currency

.............................

Deutsche

Bank

AG

10/24/22

USD

0.96

EUR

884

$

(5,601)

OTC

Interest

Rate

Swaptions

Written

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

Call

10-Year

Interest

Rate

Swap

(a)

2.41%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

08/10/23

2.41

%

USD

657

$

(5,859)

2-Year

Interest

Rate

Swap

(a)

.

1.77%

Semi-Annual

1

day

SOFR

Annual

Goldman

Sachs

International

08/11/23

1.77

USD

2,293

(2,447)

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

46

Schedule

of

Investments

(continued)

September

30,

2022

OTC

Interest

Rate

Swaptions

Written

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration

Date

Exercise

Rate

Notional

Amount

(000)

Value

2-Year

Interest

Rate

Swap

(a)

.

3.10%

Semi-Annual

1

day

SOFR

Annual

Bank

of

America

NA

09/08/23

3.10

%

USD

2,583

$

(13,566)

(21,872)

Put

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

2.41%

Semi-Annual

Bank

of

America

NA

08/10/23

2.41

USD

657

(63,335)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.10%

Semi-Annual

Goldman

Sachs

International

08/10/23

3.10

USD

348

(19,337)

10-Year

Interest

Rate

Swap

(a)

1

day

SOFR

Annual

3.20%

Semi-Annual

Goldman

Sachs

International

08/10/23

3.20

USD

348

(17,655)

1-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

At

Termination

3.48%

At

Termination

Goldman

Sachs

International

08/10/23

3.48

USD

9,415

(96,542)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.77%

Semi-Annual

Goldman

Sachs

International

08/11/23

3.77

USD

2,293

(30,688)

2-Year

Interest

Rate

Swap

(a)

.

1

day

SOFR

Annual

3.10%

Semi-Annual

Bank

of

America

NA

09/08/23

3.10

USD

2,583

(54,358)

(281,915)

$

(303,787)

(a)

Forward

settling

swaption.

Centrally

Cleared

Credit

Default

Swaps

—

Buy

Protection

Reference

Obligation/Index

Financing

Rate

Paid

by

the

Fund

Payment

Frequency

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

CDX.NA.IG.39.V1

...................

1.00

%

Quarterly

12/20/27

USD

831

$

2,598

$

3,811

$

(1,213)

Centrally

Cleared

Interest

Rate

Swap

s

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

6

month

EURIBOR

Semi-Annual

1.52%

Annual

N/A

02/15/31

EUR

27

$

(2,796)

$

—

$

(2,796)

6

month

EURIBOR

Semi-Annual

1.52%

Annual

N/A

02/15/31

EUR

36

(3,738)

—

(3,738)

6

month

EURIBOR

Semi-Annual

1.54%

Annual

N/A

02/15/31

EUR

73

(7,429)

—

(7,429)

6

month

EURIBOR

Semi-Annual

1.55%

Annual

N/A

02/15/31

EUR

27

(2,727)

—

(2,727)

6

month

EURIBOR

Semi-Annual

1.55%

Annual

N/A

02/15/31

EUR

37

(3,697)

—

(3,697)

6

month

EURIBOR

Semi-Annual

1.56%

Annual

N/A

02/15/31

EUR

73

(7,310)

—

(7,310)

6

month

EURIBOR

Semi-Annual

1.57%

Annual

N/A

02/15/31

EUR

73

(7,263)

—

(7,263)

6

month

EURIBOR

Semi-Annual

1.59%

Annual

N/A

02/15/31

EUR

37

(3,563)

—

(3,563)

6

month

EURIBOR

Semi-Annual

1.64%

Annual

N/A

02/15/31

EUR

18

(1,685)

—

(1,685)

6

month

EURIBOR

Semi-Annual

1.65%

Annual

N/A

02/15/31

EUR

37

(3,398)

—

(3,398)

6

month

EURIBOR

Semi-Annual

1.65%

Annual

N/A

02/15/31

EUR

18

(1,683)

—

(1,683)

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

47

Schedule

of

Investments

(continued)

September

30,

2022

i

Centrally

Cleared

Interest

Rate

Swaps

(continued)

Paid

by

the

Fund

Received

by

the

Fund

Rate

Frequency

Rate

Frequency

Effective

Date

Termination

Date

Notional

Amount

(000)

Value

Upfront

Premium

Paid

(Received)

Unrealized

Appreciation

(Depreciation)

6

month

EURIBOR

Semi-Annual

1.69%

Annual

N/A

02/15/31

EUR

19

$

(1,675)

$

—

$

(1,675)

6

month

EURIBOR

Semi-Annual

1.82%

Annual

N/A

02/15/31

EUR

59

(4,757)

—

(4,757)

0.31%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

10,385

1,266

—

1,266

0.31%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

11,710

1,426

—

1,426

0.30%

Annual

1

day

TONAR

Annual

N/A

04/07/32

JPY

11,845

1,507

—

1,507

0.39%

Annual

1

day

TONAR

Annual

N/A

05/02/32

JPY

7,208

485

—

485

0.42%

Annual

1

day

TONAR

Annual

N/A

06/14/32

JPY

16,108

872

—

872

0.42%

Annual

1

day

TONAR

Annual

N/A

06/14/32

JPY

14,284

812

—

812

0.42%

Annual

1

day

TONAR

Annual

N/A

06/14/32

JPY

29,968

1,606

—

1,606

0.42%

Annual

1

day

TONAR

Annual

N/A

07/11/32

JPY

15,068

897

—

897

0.45%

Annual

1

day

TONAR

Annual

N/A

07/12/32

JPY

15,083

681

—

681

0.33%

Annual

1

day

TONAR

Annual

N/A

08/01/32

JPY

12,427

1,549

—

1,549

0.34%

Annual

1

day

TONAR

Annual

N/A

08/02/32

JPY

12,427

1,496

—

1,496

0.37%

Annual

1

day

TONAR

Annual

N/A

08/24/32

JPY

42,522

4,466

—

4,466

2.57%

Annual

6

month

EURIBOR

Semi-Annual

N/A

09/19/32

EUR

500

20,213

—

20,213

0.86%

Annual

1

day

TONAR

Annual

N/A

05/09/52

JPY

4,707

2,142

—

2,142

0.86%

Annual

1

day

TONAR

Annual

N/A

05/09/52

JPY

2,594

1,204

—

1,204

0.89%

Annual

1

day

TONAR

Annual

N/A

05/10/52

JPY

2,389

983

—

983

0.82%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

2,624

1,408

—

1,408

0.81%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

2,624

1,442

—

1,442

0.87%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

2,624

1,179

—

1,179

0.83%

Annual

1

day

TONAR

Annual

N/A

05/30/52

JPY

2,624

1,356

—

1,356

$

(4,731)

$

—

$

(4,731)

OTC

Credit

Default

Swap

s

—

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)

Abbott

Laboratories

........

1.00

%

Quarterly

JPMorgan

Chase

Bank

NA

06/20/27

USD

17

$

(467)

$

(369)

$

(98)

$

–

$

–

$

–

The

following

reference

rates,

and

their

values

as

of

period

end,

are

used

for

security

descriptions:

Reference

Index

Reference

Rate

1

day

SOFR

.........................................

Secured

Overnight

Financing

Rate

2.59

%

1

day

TONAR

........................................

Tokyo

Overnight

Average

Rate

0.73

6

month

EURIBOR

.....................................

Euro

Interbank

Offered

Rate

1.90

Balances

Reported

in

the

Statements

of

Assets

and

Liabilities

for

Centrally

Cleared

Swaps,

OTC

Swaps

and

Options

Written

Description

Swap

Premiums

Paid

Swap

Premiums

Received

Unrealized

Appreciation

Unrealized

Depreciation

Value

Centrally

Cleared

Swaps

(a)

...........................................

$

3,811

$

—

$

46,990

$

(52,934)

$

—

OTC

Swaps

.....................................................

—

(369)

—

(98)

—

Options

Written

...................................................

N/A

N/A

45,552

(194,819)

(351,013)

(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.

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

48

Schedule

of

Investments

(continued)

September

30,

2022

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)

.....

$

—

$

—

$

—

$

—

$

142,976

$

—

$

142,976

Forward

foreign

currency

exchange

contracts

Unrealized

appreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

100,983

—

—

100,983

Options

purchased

(b)

Investments

at

value

—

unaffiliated

(c)

...........

—

—

—

11,608

120,643

—

132,251

Swaps

—

centrally

cleared

Unrealized

appreciation

on

centrally

cleared

swaps

(a)

.

—

—

—

—

46,990

—

46,990

$

—

$

—

$

—

$

112,591

$

310,609

$

—

$

423,200

Liabilities

—

Derivative

Financial

Instruments

Futures

contracts

Unrealized

depreciation

on

futures

contracts

(a)

.....

$

—

$

—

$

—

$

—

$

304,142

$

—

$

304,142

Forward

foreign

currency

exchange

contracts

Unrealized

depreciation

on

forward

foreign

currency

exchange

contracts

......................

—

—

—

4,911

—

—

4,911

Options

written

(b)

Options

written

at

value

.....................

—

—

—

5,601

345,412

—

351,013

Swaps

—

centrally

cleared

Unrealized

depreciation

on

centrally

cleared

swaps

(a)

.

—

1,213

—

—

51,721

—

52,934

Swaps

—

OTC

Unrealized

depreciation

on

OTC

swaps;

Swap

premiums

received

.............................

—

467

—

—

—

—

467

$

—

$

1,680

$

—

$

10,512

$

701,275

$

—

$

713,467

(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).

(b)

Includes

forward

settling

swaptions.

(c)

Includes

options

purchased

at

value

as

reported

in

the

Schedule

of

Investments.

For

the

period

ended

September

30,

2022,

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

.......................

$

—

$

—

$

—

$

—

$

(488,428)

$

—

$

(488,428)

Forward

foreign

currency

exchange

contracts

....

—

—

—

707,337

—

—

707,337

Options

purchased

(a)

....................

—

—

—

(50,220)

12,522

—

(37,698)

Options

written

........................

—

—

—

32,029

(43,234)

—

(11,205)

Swaps

..............................

—

(3,813)

—

—

52,396

(79,734)

(31,151)

$

—

$

(3,813)

$

—

$

689,146

$

(466,744)

$

(79,734)

$

138,855

Net

Change

in

Unrealized

Appreciation

(Depreciation)

on

Futures

contracts

.......................

$

—

$

—

$

—

$

—

$

(161,166)

$

—

$

(161,166)

Forward

foreign

currency

exchange

contracts

....

—

—

—

96,072

—

—

96,072

Options

purchased

(b)

....................

—

—

—

4,044

60,262

—

64,306

Options

written

........................

—

—

—

(2,632)

(146,635)

—

(149,267)

Swaps

..............................

—

(1,311

)

—

—

(

4,731

)

—

(6,042)

$

—

$

(1,311)

$

—

$

97,484

$

(252,270)

$

—

$

(156,097)

(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.

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

49

Schedule

of

Investments

(continued)

September

30,

2022

For

more

information

about

the

Fund’s

investment

risks

regarding

derivative

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

Derivative

Financial

Instruments

—

Offsetting

as

of

Period

End

Average

Quarterly

Balances

of

Outstanding

Derivative

Financial

Instruments

Futures

contracts

Average

notional

value

of

contracts

—

long

..................................................................................

$

10,490,895

Average

notional

value

of

contracts

—

short

.................................................................................

$

7,045,431

Forward

foreign

currency

exchange

contracts

Average

amounts

purchased

—

in

USD

....................................................................................

$

5,027,875

Average

amounts

sold

—

in

USD

........................................................................................

$

331,761

Options

Average

value

of

option

contracts

purchased

................................................................................

$

6,579

Average

value

of

option

contracts

written

...................................................................................

$

12,162

Average

notional

value

of

swaption

contracts

purchased

.........................................................................

$

2,734,026

Average

notional

value

of

swaption

contracts

written

...........................................................................

$

8,951,294

Credit

default

swaps

Average

notional

value

—

buy

protection

...................................................................................

$

220,306

Interest

rate

swaps

Average

notional

value

—

pays

fixed

rate

...................................................................................

$

1,553,000

Average

notional

value

—

receives

fixed

rate

................................................................................

$

9,551,895

Inflation

swaps

Average

notional

value

—

receives

fixed

rate

................................................................................

$

753,250

The

Fund's

derivative

assets

and

liabilities

(by

type)

were

as

follows:

Assets

Liabilities

Derivative

Financial

Instruments

$

—

Futures

contracts

....................................................................................

$

1,958

$

57,708

Forward

foreign

currency

exchange

contracts

.................................................................

100,983

4,911

Options

(a)(b)

........................................................................................

132,251

351,013

Swaps

—

centrally

cleared

..............................................................................

—

15,453

Swaps

—

OTC

(c)

....................................................................................

—

467

Total

derivative

assets

and

liabilities

in

the

Statements

of

Assets

and

Liabilities

............................................

$

235,192

$

429,552

Derivatives

not

subject

to

a

Master

Netting

Agreement

or

similar

agreement

("MNA")

........................................

(1,958)

(114,786)

Total

derivative

assets

and

liabilities

subject

to

an

MNA

............................................................

$

233,234

$

314,766

(a)

Includes

options

purchased

at

value

which

is

included

in

Investments

at

value

–

unaffiliated

in

the

Statements

of

Assets

and

Liabilities

and

reported

in

the

Schedule

of

Investments.

(b)

Includes

forward

settling

swaptions.

(c)

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

..............................

$

5,300

$

(5,300)

$

—

$

—

$

—

BNP

Paribas

SA

.................................

4,315

—

—

—

4,315

Deutsche

Bank

AG

...............................

15,87

5

(5,601)

—

—

10,27

4

Goldman

Sachs

International

........................

105,502

(105,502)

—

—

—

HSBC

Bank

plc

..................................

78,951

—

—

—

78,951

JPMorgan

Chase

Bank

NA

..........................

6,126

(46

7

)

—

—

5,6

59

Morgan

Stanley

&

Co.

International

plc

..................

10,826

(4,911)

—

—

5,915

UBS

AG

......................................

6,33

9

—

—

—

6,33

9

$

233,234

$

(121,78

1

)

$

—

$

—

$

111,45

3

2022

BlackRock

Annual

Report

to

Shareholders

BlackRock

Sustainable

Total

Return

Fund

50

Schedule

of

Investments

(continued)

September

30,

2022

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

..............................

$

137,118

$

(5,300)

$

—

$

—

$

131,818

Deutsche

Bank

AG

...............................

5,601

(5,601)

—

—

—

Goldman

Sachs

International

........................

166,669

(105,502)

—

—

61,167

JPMorgan

Chase

Bank

NA

..........................

46

7

(46

7

)

—

—

—

Morgan

Stanley

&

Co.

International

plc

..................

4,91

1

(4,91

1

)

—

—

—

$

314,766

$

(121,781)

$

—

$

—

$

192,985

(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.

BlackRock

Sustainable

Total

Return

Fund

Schedules

of

Investments

51

Schedule

of

Investments

(continued)

September

30,

2022

See

notes

to

financial

statements.

Fair

Value

Hierarchy

as

of

Period

End

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

For

a

description

of

the

input

levels

and

information

about

the

Fund’s

policy

regarding

valuation

of

financial

instruments,

refer

to

the

Notes

to

Financial

Statements.

The

following

table

summarizes

the

Fund’s

financial

instruments

categorized

in

the

fair

value

hierarchy.

The

breakdown

of

the

Fund’s

financial

instruments

into

major

categories

is

disclosed

in

the

Schedule

of

Investments

above.

Level

1

Level

2

Level

3

Total

Assets

Investments

Long-Term

Investments

Asset-Backed

Securities

...................................

$

—

$

5,910,321

$

—

$

5,910,321

Corporate

Bonds

........................................

—

14,980,061

—

14,980,061

Foreign

Agency

Obligations

.................................

—

768,170

—

768,170

Foreign

Government

Obligations

..............................

—

1,663,056

—

1,663,056

Municipal

Bonds

.........................................

—

238,228

—

238,228

Non-Agency

Mortgage-Backed

Securities

........................

—

2,689,635

—

2,689,635

Preferred

Securities

.......................................

—

72,086

—

72,086

U.S.

Government

Sponsored

Agency

Securities

....................

—

17,016,935

—

17,016,935

U.S.

Treasury

Obligations

...................................

—

3,648,945

—

3,648,945

Short-Term

Securities

Money

Market

Funds

......................................

2,006,214

—

—

2,006,214

Options

Purchased

Foreign

currency

exchange

contracts

...........................

—

11,608

—

11,608

Interest

rate

contracts

......................................

—

120,643

—

120,643

Liabilities

Investments

TBA

Sale

Commitments

....................................

—

(5,603,318)

—

(5,603,318)

$

2,006,214

$

41,516,370

$

—

$

43,522,584

Derivative

Financial

Instruments

(a)

Assets

Foreign

currency

exchange

contracts

............................

$

—

$

100,983

$

—

$

100,983

Interest

rate

contracts

.......................................

142,976

46,990

—

189,966

Liabilities

Credit

contracts

...........................................

—

(1,311)

—

(1,311)

Foreign

currency

exchange

contracts

............................

—

(10,512)

—

(10,512)

Interest

rate

contracts

.......................................

(345,767)

(355,508)

—

(701,275)

$

(202,791)

$

(219,358)

$

—

$

(422,149)

(a)

Derivative

financial

instruments

are

swaps,

futures

contracts,

forward

foreign

currency

exchange

contracts

and

options

written.

Swaps,

futures

contracts

and

forward

foreign

currency

exchange

contracts

are

valued

at

the

unrealized

appreciation

(depreciation)

on

the

instrument

and

options

written

are

shown

at

value.

Statements

of

Assets

and

Liabilities

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

52

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

ASSETS

Investments,

at

value

—

unaffiliated

(a)

..........................................................

$

39,638,779‌

$

47,312,938‌

$

47,119,688‌

Investments,

at

value

—

affiliated

(b)

............................................................

1,002,589‌

1,345,914‌

2,006,214‌

Cash  

...............................................................................

28,707‌

—‌

—‌

Cash

pledged:

Futures

contracts

......................................................................

4,000‌

232,000‌

360,000‌

Centrally

cleared

swaps

..................................................................

—‌

60,000‌

64,000‌

Foreign

currency,

at

value

(c)

.................................................................

—‌

54,583‌

348,925‌

Receivables:

–‌

–‌

–‌

Investments

sold

......................................................................

145,836‌

1,379,563‌

—‌

Swaps  

............................................................................

—‌

—‌

3,863‌

TBA

sale

commitments

..................................................................

—‌

717,148‌

5,786,850‌

Dividends

—

unaffiliated

.................................................................

118‌

—‌

—‌

Dividends

—

affiliated

...................................................................

2,217‌

1,718‌

3,000‌

Interest

—

unaffiliated

...................................................................

577,522‌

216,338‌

261,247‌

From

the

Manager

.....................................................................

82,555‌

14,922‌

35,765‌

Variation

margin

on

futures

contracts

.........................................................

768‌

31,949‌

1,958‌

Variation

margin

on

centrally

cleared

swaps

....................................................

—‌

5,986‌

—‌

Unrealized

appreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

—‌

82,000‌

100,983‌

Deferred

offering

costs

....................................................................

—‌

6,673‌

8,992‌

Prepaid

expenses

.......................................................................

42,931‌

45,792‌

53,434‌

Total

assets

...........................................................................

41,526,022‌

51,507,524‌

56,154,919‌

LIABILITIES

Bank

overdraft

..........................................................................

—‌

4,019‌

7,235‌

Due

to

broker

..........................................................................

—‌

90,826‌

—‌

Options

written,

at

value

(d)

..................................................................

—‌

—‌

351,013‌

TBA

sale

commitments,

at

value

(e)

............................................................

—‌

714,434‌

5,603,318‌

Payables:

–‌

–‌

–‌

Investments

purchased

..................................................................

273,015‌

4,215,602‌

8,735,506‌

Accounting

services

fees

.................................................................

20,634‌

12,710‌

12,663‌

Administration

fees

.....................................................................

3‌

4‌

5‌

Custodian

fees

........................................................................

1,616‌

9,073‌

2,850‌

Income

dividend

distributions

..............................................................

179,029‌

88,739‌

103,356‌

Investment

advisory

fees

.................................................................

—‌

7‌

16‌

Professional

fees

......................................................................

128,244‌

59,834‌

102,954‌

Registration

fees

......................................................................

198‌

—‌

—‌

Service

fees

.........................................................................

17‌

22‌

19‌

Transfer

agent

fees

....................................................................

717‌

575‌

587‌

Other

accrued

expenses

.................................................................

42‌

4,522‌

120‌

Variation

margin

on

futures

contracts

.........................................................

—‌

30,236‌

57,708‌

Variation

margin

on

centrally

cleared

swaps

....................................................

—‌

—‌

15,453‌

Swap

premiums

received

..................................................................

—‌

—‌

369‌

Unrealized

depreciation

on:

–‌

–‌

–‌

Forward

foreign

currency

exchange

contracts

...................................................

—‌

—‌

4,911‌

OTC

swaps

..........................................................................

—‌

—‌

98‌

Total

liabilities

..........................................................................

603,515‌

5,230,603‌

14,998,181‌

NET

ASSETS

..........................................................................

$

40,922,507‌

$

46,276,921‌

$

41,156,738‌

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2022

53

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

NET

ASSETS

CONSIST

OF:

Paid-in

capital

..........................................................................

$

49,918,146‌

$

49,946,020‌

$

49,945,106‌

Accumulated

loss

.......................................................................

(8,995,639‌)

(3,669,099‌)

(8,788,368‌)

NET

ASSETS

..........................................................................

$

40,922,507‌

$

46,276,921‌

$

41,156,738‌

(a)

  Investments,

at

cost

—

unaffiliated

..........................................................

$

46,769,786‌

$

51,355,170‌

$

53,434,669‌

(b)

  Investments,

at

cost

—

affiliated

............................................................

$

1,002,589‌

$

1,345,914‌

$

2,006,214‌

(c)

  Foreign

currency,

at

cost

.................................................................

$

—‌

$

54,615‌

$

349,387‌

(d)

  Premiums

received

....................................................................

$

—‌

$

—‌

$

201,746‌

(e)

  Proceeds

from

TBA

sale

commitments

.......................................................

$

—‌

$

717,148‌

$

5,786,850‌

Statements

of

Assets

and

Liabilities

(continued)

September

30,

2022

2022

BlackRock

Annual

Report

to

Shareholders

54

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

BlackRock

Sustainable

Total

Return

Fund

NET

ASSET

VALUE

Institutional

Net

assets

............................................................................

$

83,365‌

$

92,518‌

$

82,293‌

Shares

outstanding

.....................................................................

10,187‌

10,000‌

10,000‌

Net

asset

value

........................................................................

$

8.18‌

$

9.25‌

$

8.23‌

Shares

authorized

......................................................................

Unlimited

Unlimited

500

million

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.10‌

Investor

A

Net

assets

............................................................................

$

84,201‌

$

110,133‌

$

92,097‌

Shares

outstanding

.....................................................................

10,289‌

11,904‌

11,192‌

Net

asset

value

........................................................................

$

8.18‌

$

9.25‌

$

8.23‌

Shares

authorized

......................................................................

Unlimited

Unlimited

300

million

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.10‌

Class

K

Net

assets

............................................................................

$

40,754,941‌

$

46,074,270‌

$

40,982,348‌

Shares

outstanding

.....................................................................

4,980,000‌

4,980,000‌

4,980,000‌

Net

asset

value

........................................................................

$

8.18‌

$

9.25‌

$

8.23‌

Shares

authorized

......................................................................

Unlimited

Unlimited

500

million

Par

value

............................................................................

$

0.001‌

$

0.001‌

$

0.10‌

Statements

of

Operations

Period

Ended

September

30,

2022

55

Financial

Statements

(a)

Period

from

10/18/21

(commencement

of

operations)

to

09/30/22.

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

(a)

BlackRock

Sustainable

Total

Return

Fund

(a)

INVESTMENT

INCOME

–

–

–

Dividends

—

unaffiliated

.................................................................

$

5,929‌

$

—‌

$

—‌

Dividends

—

affiliated

...................................................................

6,113‌

8,239‌

14,187‌

Interest

—

unaffiliated

...................................................................

2,076,831‌

742,264‌

969,054‌

Foreign

taxes

withheld

..................................................................

—‌

(315‌)

(619‌)

Total

investment

income

...................................................................

2,088,873‌

750,188‌

982,622‌

EXPENSES

Investment

advisory

....................................................................

230,618‌

142,771‌

171,630‌

Organization

and

Offering

................................................................

—‌

159,344‌

160,985‌

Offering

............................................................................

129,726‌

—‌

—‌

Professional

.........................................................................

123,853‌

71,602‌

108,190‌

Accounting

services

....................................................................

91,541‌

47,489‌

60,006‌

Printing

and

postage

...................................................................

35,332‌

3

,

67

8‌

7

,

282‌

Administration

.......................................................................

19,603‌

19,574‌

18,703‌

Registration

.........................................................................

17,508‌

6,029‌

14,163‌

Custodian

...........................................................................

9,823‌

16,709‌

15,014‌

Administration

—

class

specific

............................................................

9,224‌

9,209‌

8,800‌

Directors

and

Officer

...................................................................

1,551‌

1,327‌

1,344‌

Transfer

agent

—

class

specific

............................................................

804‌

750‌

750‌

Service

—

class

specific

.................................................................

234‌

353‌

237‌

Miscellaneous

........................................................................

4,984‌

14,000‌

17,228‌

Total

expenses

.........................................................................

674,801‌

492,835‌

584,332‌

Less:

–‌

–‌

–‌

Fees

waived

and/or

reimbursed

by

the

Manager

.................................................

(401,446‌)

(301,757‌)

(384,215‌)

Administration

fees

waived

...............................................................

(18,643‌)

(19,574‌)

(18,703‌)

Administration

fees

waived

by

the

Manager

—

class

specific

.........................................

(9,214‌)

(9,195‌)

(8,790‌)

Transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific

............................

(734‌)

(669‌)

(642‌)

Total

expenses

after

fees

waived

and/or

reimbursed

................................................

244,764‌

161,640‌

171,982‌

Net

investment

income

....................................................................

1,844,109‌

588,548‌

810,640‌

REALIZED

AND

UNREALIZED

GAIN

(LOSS)

$

(8,585,299‌)

$

(3,664,836‌)

$

(8,804,609‌)

Net

realized

gain

(loss)

from:

Investments

—

unaffiliated

.............................................................

$

(1,727,274‌)

$

(766,858‌)

$

(2,656,814‌)

Forward

foreign

currency

exchange

contracts

.................................................

—‌

684,085‌

707,337‌

Foreign

currency

transactions

...........................................................

—‌

(4,403‌)

26,472‌

Futures

contracts

....................................................................

39,512‌

260,065‌

(488,428‌)

Options

written

.....................................................................

784‌

—‌

(11,205‌)

Payment

by

affiliate

..................................................................

—‌

—‌

3,180‌

Swaps  

..........................................................................

—‌

44,381‌

(31,151‌)

(1,686,978‌)

217,270‌

(2,450,609‌)

Net

change

in

unrealized

appreciation

(depreciation)

on:

Investments

—

unaffiliated

.............................................................

(6,909,225‌)

(4,039,518‌)

(6,131,449‌)

Forward

foreign

currency

exchange

contracts

.................................................

—‌

82,000‌

96,072‌

Foreign

currency

translations

............................................................

—‌

(1,604‌)

(2,148‌)

Futures

contracts

....................................................................

10,904‌

64,911‌

(161,166‌)

Options

written

.....................................................................

—‌

—‌

(149,267‌)

Swaps  

..........................................................................

—‌

12,105‌

(6,042‌)

(6,898,321‌)

(3,882,106‌)

(6,354,000‌)

Net

realized

and

unrealized

loss

..............................................................

(8,585,299‌)

(3,664,836‌)

(8,804,609‌)

NET

DECREASE

IN

NET

ASSETS

RESULTING

FROM

OPERATIONS

...................................

$

(6,741,190‌)

$

(3,076,288‌)

$

(7,993,969‌)

Statements

of

Changes

in

Net

Assets

2022

BlackRock

Annual

Report

to

Shareholders

56

See

notes

to

financial

statements.

BlackRock

Sustainable

High

Yield

Bond

Fund

BlackRock

Sustainable

Low

Duration

Bond

Fund

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Period

from

10/18/21

(a)

to

09/30/22

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

...................................................................

$

1,844,109‌

$

272,573‌

$

588,548‌

Net

realized

gain

(loss)

...................................................................

(1,686,978‌)

(30,972‌)

217,270‌

Net

change

in

unrealized

appreciation

(depreciation)

...............................................

(6,898,321‌)

(221,782‌)

(3,882,106‌)

Net

increase

(decrease)

in

net

assets

resulting

from

operations

..........................................

(6,741,190‌)

19,819‌

(3,076,288‌)

DISTRIBUTIONS

TO

SHAREHOLDERS

(b)

  Institutional

..........................................................................

(4,082‌)

(615‌)

(1,298‌)

  Investor

A

...........................................................................

(3,877‌)

(571‌)

(1,738‌)

  Class

K

.............................................................................

(2,040,030‌)

(311,210‌)

(664,697‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

........................................

(2,047,989‌)

(312,396‌)

(667,733‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

in

net

assets

derived

from

capital

share

transactions

........................................

4,263‌

50,000,000‌

50,020,942‌

NET

ASSETS

Total

increase

(decrease)

in

net

assets

..........................................................

(8,784,916‌)

49,707,423‌

46,276,921‌

Beginning

of

period

.......................................................................

49,707,423‌

—‌

—

End

of

period

...........................................................................

$

40,922,507‌

$

49,707,423‌

$

46,276,921‌

(a)

Commencement

of

operations.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Statements

of

Changes

in

Net

Assets

(continued)

57

Financial

Statements

See

notes

to

financial

statements.

BlackRock

Sustainable

Total

Return

Fund

Period

from

10/18/21

(a)

to

09/30/22

INCREASE

(DECREASE)

IN

NET

ASSETS

OPERATIONS

Net

investment

income

.................................................................................................

$

810,640‌

Net

realized

loss

.....................................................................................................

(2,450,609‌)

Net

change

in

unrealized

appreciation

(depreciation)

.............................................................................

(6,354,000‌)

Net

decrease

in

net

assets

resulting

from

operations

...............................................................................

(7,993,969‌)

DISTRIBUTIONS

TO

SHAREHOLDERS

(b)

  Institutional

........................................................................................................

(1,685‌)

  Investor

A

.........................................................................................................

(1,566‌)

  Class

K

...........................................................................................................

(857,656‌)

Decrease

in

net

assets

resulting

from

distributions

to

shareholders

......................................................................

(860,907‌)

CAPITAL

SHARE

TRANSACTIONS

Net

increase

in

net

assets

derived

from

capital

share

transactions

......................................................................

50,011,614‌

NET

ASSETS

Total

increase

in

net

assets

................................................................................................

41,156,738‌

Beginning

of

period

.....................................................................................................

—

End

of

period

.........................................................................................................

$

41,156,738‌

(a)

Commencement

of

operations.

(b)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

Financial

Highlights

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

58

BlackRock

Sustainable

High

Yield

Bond

Fund

Institutional

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Net

asset

value,

beginning

of

period

...................................................................

$

9.94

‌

$

10.00

‌

Net

investment

income

(b)

...........................................................................

0.37

‌

0.05

‌

Net

realized

and

unrealized

loss

......................................................................

(1.72

)

(0.05

)

Net

increase

(decrease)

from

investment

operations

..........................................................

(1.35

)

0.00

‌

Distributions

from

net

investment

income

(c)

..............................................................

(0.41

)

(0.06

)

Net

asset

value,

end

of

period

........................................................................

$

8.18

‌

$

9.94

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

............................................................................

(13.97

)%

0.01

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

...................................................................................

1.75

%

1.32

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

..........................................................

0.57

%

0.58

%

(g)

Net

investment

income

.............................................................................

3.96

%

2.80

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

........................................................................

$

83

‌

$

99

‌

Portfolio

turnover

rate

...............................................................................

47

%

10

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering

and

organization

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

2.40%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

59

Financial

Highlights

BlackRock

Sustainable

High

Yield

Bond

Fund

Investor

A

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Net

asset

value,

beginning

of

period

...................................................................

$

9.94

‌

$

10.00

‌

Net

investment

income

(b)

...........................................................................

0.34

‌

0.05

‌

Net

realized

and

unrealized

loss

......................................................................

(1.72

)

(0.05

)

Net

increase

(decrease)

from

investment

operations

..........................................................

(1.38

)

0.00

‌

Distributions

from

net

investment

income

(c)

..............................................................

(0.38

)

(0.06

)

Net

asset

value,

end

of

period

........................................................................

$

8.18

‌

$

9.94

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

............................................................................

(14.18

)%

(0.03

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

...................................................................................

2.00

%

1.58

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

..........................................................

0.82

%

0.83

%

(g)

Net

investment

income

.............................................................................

3.71

%

2.55

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

........................................................................

$

84

‌

$

99

‌

Portfolio

turnover

rate

...............................................................................

47

%

10

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering

and

organization

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

2.65%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

each

period)

2022

BlackRock

Annual

Report

to

Shareholders

60

BlackRock

Sustainable

High

Yield

Bond

Fund

Class

K

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Net

asset

value,

beginning

of

period

...................................................................

$

9.94

‌

$

10.00

‌

Net

investment

income

(b)

...........................................................................

0.37

‌

0.05

‌

Net

realized

and

unrealized

loss

......................................................................

(1.72

)

(0.05

)

Net

increase

(decrease)

from

investment

operations

..........................................................

(1.35

)

0.00

‌

Distributions

from

net

investment

income

(c)

..............................................................

(0.41

)

(0.06

)

Net

asset

value,

end

of

period

........................................................................

$

8.18

‌

$

9.94

‌

Total

Return

(d)

—

—

Based

on

net

asset

value

............................................................................

(13.93

)%

0.02

%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

...................................................................................

1.46

%

0.96

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

..........................................................

0.53

%

0.53

%

(g)

Net

investment

income

.............................................................................

4.00

%

2.85

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

........................................................................

$

40,755

‌

$

49,509

‌

Portfolio

turnover

rate

...............................................................................

47

%

10

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering

and

organization

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

would

have

been

2.04%.

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

the

period)

61

Financial

Highlights

BlackRock

Sustainable

Low

Duration

Bond

Fund

Institutional

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

....................................................................................

$

10.00

‌

Net

investment

income

(b)

............................................................................................

0.11

‌

Net

realized

and

unrealized

loss

.......................................................................................

(0.73

)

Net

decrease

from

investment

operations

..................................................................................

(0.62

)

Distributions

from

net

investment

income

(c)

...............................................................................

(0.13

)

Net

asset

value,

end

of

period

.........................................................................................

$

9.25

‌

Total

Return

(d)

—

Based

on

net

asset

value

.............................................................................................

(6.24

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

....................................................................................................

1.31

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

...........................................................................

0.37

%

(g)(h)

Net

investment

income

..............................................................................................

1.24

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

.........................................................................................

$

93

‌

Portfolio

turnover

rate

(i)

...............................................................................................

178

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.34%

and

0.39%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Excluding

MDRs,

the

portfolio

turnover

rate

would

have

been

167%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

the

period)

2022

BlackRock

Annual

Report

to

Shareholders

62

BlackRock

Sustainable

Low

Duration

Bond

Fund

Investor

A

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

....................................................................................

$

10.00

‌

Net

investment

income

(b)

............................................................................................

0.10

‌

Net

realized

and

unrealized

loss

.......................................................................................

(0.74

)

Net

decrease

from

investment

operations

..................................................................................

(0.64

)

Distributions

from

net

investment

income

(c)

...............................................................................

(0.11

)

Net

asset

value,

end

of

period

.........................................................................................

$

9.25

‌

Total

Return

(d)

—

Based

on

net

asset

value

.............................................................................................

(6.46

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

....................................................................................................

1.48

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

...........................................................................

0.62

%

(g)(h)

Net

investment

income

..............................................................................................

1.08

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

.........................................................................................

$

110

‌

Portfolio

turnover

rate

(i)

...............................................................................................

178

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.50%

and

0.64%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Excluding

MDRs,

the

portfolio

turnover

rate

would

have

been

167%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

the

period)

63

Financial

Highlights

BlackRock

Sustainable

Low

Duration

Bond

Fund

Class

K

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

....................................................................................

$

10.00

‌

Net

investment

income

(b)

............................................................................................

0.12

‌

Net

realized

and

unrealized

loss

.......................................................................................

(0.74

)

Net

decrease

from

investment

operations

..................................................................................

(0.62

)

Distributions

from

net

investment

income

(c)

...............................................................................

(0.13

)

Net

asset

value,

end

of

period

.........................................................................................

$

9.25

‌

Total

Return

(d)

—

Based

on

net

asset

value

.............................................................................................

(6.20

)%

(e)

Ratios

to

Average

Net

Assets

(f)

Total

expenses

....................................................................................................

1.04

%

(g)(h)

Total

expenses

after

fees

waived

and/or

reimbursed

...........................................................................

0.33

%

(g)

(h)

Net

investment

income

..............................................................................................

1.28

%

(g)

Supplemental

Data

Net

assets,

end

of

period

(000)

.........................................................................................

$

46,074

‌

Portfolio

turnover

rate

(i)

...............................................................................................

178

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(g)

Annualized.

(h)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.07%

and

0.35%,

respectively.

(i)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Excluding

MDRs,

the

portfolio

turnover

rate

would

have

been

167%.

See

notes

to

financial

statements.

Financial

Highlights

(For

a

share

outstanding

throughout

the

period)

2022

BlackRock

Annual

Report

to

Shareholders

64

BlackRock

Sustainable

Total

Return

Fund

Institutional

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

....................................................................................

$

10.00

‌

Net

investment

income

(b)

............................................................................................

0.16

‌

Net

realized

and

unrealized

loss

.......................................................................................

(1.76

)

Net

decrease

from

investment

operations

..................................................................................

(1.60

)

Distributions

from

net

investment

income

(c)

...............................................................................

(0.17

)

Net

asset

value,

end

of

period

.........................................................................................

$

8.23

‌

Total

Return

(d)

—

Based

on

net

asset

value

.............................................................................................

(16.16

)%

(e)(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

....................................................................................................

1.58

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

...........................................................................

0.40

%

(h)(i)

Net

investment

income

..............................................................................................

1.80

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

.........................................................................................

$

82

‌

Portfolio

turnover

rate

(j)

...............................................................................................

604

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Annualized.

(i)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.61%

and

0.43%,

respectively.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Excluding

MDRs,

the

portfolio

turnover

rate

would

have

been

360%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

the

period)

65

Financial

Highlights

BlackRock

Sustainable

Total

Return

Fund

Investor

A

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

....................................................................................

$

10.00

‌

Net

investment

income

(b)

............................................................................................

0.13

‌

Net

realized

and

unrealized

loss

.......................................................................................

(1.76

)

Net

decrease

from

investment

operations

..................................................................................

(1.63

)

Distributions

from

net

investment

income

(c)

...............................................................................

(0.14

)

Net

asset

value,

end

of

period

.........................................................................................

$

8.23

‌

Total

Return

(d)

—

Based

on

net

asset

value

.............................................................................................

(16.38

)%

(e)(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

....................................................................................................

1.81

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

...........................................................................

0.70

%

(h)(i)

Net

investment

income

..............................................................................................

1.53

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

.........................................................................................

$

92

‌

Portfolio

turnover

rate

(j)

...............................................................................................

604

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

excludes

the

effects

of

any

sales

charges

and

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Annualized.

(i)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.84%

and

0.73%,

respectively.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Excluding

MDRs,

the

portfolio

turnover

rate

would

have

been

360%.

See

notes

to

financial

statements.

Financial

Highlights

(continued)

(For

a

share

outstanding

throughout

the

period)

2022

BlackRock

Annual

Report

to

Shareholders

66

BlackRock

Sustainable

Total

Return

Fund

Class

K

Period

from

10/18/21

(a)

to

09/30/22

Net

asset

value,

beginning

of

period

....................................................................................

$

10.00

‌

Net

investment

income

(b)

............................................................................................

0.16

‌

Net

realized

and

unrealized

loss

.......................................................................................

(1.76

)

Net

decrease

from

investment

operations

..................................................................................

(1.60

)

Distributions

from

net

investment

income

(c)

...............................................................................

(0.17

)

Net

asset

value,

end

of

period

.........................................................................................

$

8.23

‌

Total

Return

(d)

—

Based

on

net

asset

value

.............................................................................................

(16.12

)%

(e)(f)

Ratios

to

Average

Net

Assets

(g)

Total

expenses

....................................................................................................

1.30

%

(h)(i)

Total

expenses

after

fees

waived

and/or

reimbursed

...........................................................................

0.36

%

(h)(i)

Net

investment

income

..............................................................................................

1.84

%

(h)

Supplemental

Data

Net

assets,

end

of

period

(000)

.........................................................................................

$

40,982

‌

Portfolio

turnover

rate

(j)

...............................................................................................

604

%

(a)

Commencement

of

operations.

(b)

Based

on

average

shares

outstanding.

(c)

Distributions

for

annual

periods

determined

in

accordance

with

U.S.

federal

income

tax

regulations.

(d)

Where

applicable,

assumes

the

reinvestment

of

distributions.

(e)

Not

annualized.

(f)

Includes

payment

from

an

affiliate,

which

had

no

impact

on

the

Fund’s

total

return.

(g)

Excludes

fees

and

expenses

incurred

indirectly

as

a

result

of

investments

in

underlying

funds.

(h)

Annualized.

(i)

Audit,

offering,

organization

and

printing

costs

were

not

annualized

in

the

calculation

of

the

expense

ratios.

If

these

expenses

were

annualized,

the

total

expenses

and

total

expenses

after

fees

waived

and/or

reimbursed

would

have

been

1.33%

and

0.39%,

respectively.

(j)

Includes

mortgage

dollar

roll

transactions

("MDRs").

Excluding

MDRs,

the

portfolio

turnover

rate

would

have

been

360%.

See

notes

to

financial

statements.

Notes

to

Financial

Statements

67

Notes

to

Financial

Statements

1.

ORGANIZATION 

BlackRock

Funds

V

(the

“Trust”) and

BlackRock

Bond

Fund,

Inc.

(the

“Corporation”)

are

each

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“1940

Act”),

as

open-end

management

investment

companies.

The

Trust

is

organized

as

a

Massachusetts

business

trust.

The

Corporation

is

organized

as

a

Maryland

corporation.

The

following

are

referred

to

herein

collectively

as

the

“Funds”

or

individually

as

a

“Fund”:

Each Fund

offers

multiple

classes

of

shares.

All

classes

of

shares

have

identical

voting,

dividend,

liquidation

and

other

rights

and

are

subject

to

the

same

terms

and

conditions,

except

that

certain

classes

bear

expenses

related

to

the

shareholder

servicing

and

distribution

of

such

shares. Institutional

and

Class

K

Shares

are

sold

without

a

sales

charge

and

only

to

certain

eligible

investors.

Investor

A

Shares

bear

certain

expenses

related

to

shareholder

servicing

of

such

shares.

Investor

A

Shares

are

generally available

through

financial

intermediaries.

Each

class

has

exclusive

voting

rights

with

respect

to

matters

relating

to

its

shareholder

servicing

and

distribution

expenditures.

(a)

 Investor

A

Shares

may

be

subject

to

a

CDSC

for

certain

redemptions

where

no

initial

sales

charge

was

paid

at

the

time

of

purchase.

The

Board

of

Trustees

of

BlackRock

Funds

V

and

Board

of

Directors

of

BlackRock

Bond

Fund,

Inc.

are

collectively

referred

to

throughout

this

report

as

the

“Board”,

and

the

directors/trustees

thereof

are

collectively

referred

to

throughout

this

report

as

“Directors”.

The

Funds,

together

with

certain

other

registered

investment

companies

advised

by

BlackRock

Advisors,

LLC

(the

“Manager”) or

its

affiliates,

are

included

in

a

complex

of

open-end

non-index

fixed-income

funds

and

all

BlackRock-advised

closed-end

funds

referred

to

as

the

BlackRock

Fixed-Income

Complex.

2.

SIGNIFICANT

ACCOUNTING

POLICIES

The

financial

statements

are

prepared

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America

(“U.S.

GAAP”),

which

may

require

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

in

the

financial

statements,

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

increases

and

decreases

in

net

assets

from

operations

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

Each

Fund

is

considered

an

investment

company

under

U.S.

GAAP

and

follows

the

accounting

and

reporting

guidance

applicable

to

investment

companies.

Below

is

a

summary

of

significant

accounting

policies: 

Investment

Transactions

and

Income

Recognition:

For

financial

reporting

purposes,

investment

transactions

are

recorded

on

the

dates

the

transactions

are

executed

(the

“trade

dates”).

Realized

gains

and

losses

on

investment

transactions

are

determined

using

the

specific

identification

method.

Dividend

income

and

capital

gain

distributions,

if

any,

are

recorded

on

the

ex-dividend

dates.

Non-cash

dividends,

if

any,

are

recorded

on

the

ex-dividend

dates

at

fair

value.

Dividends

from

foreign

securities

where

the

ex-dividend

dates

may

have

passed

are

subsequently

recorded

when

the

Funds

are

informed

of

the

ex-dividend

dates.

Under

the

applicable

foreign

tax

laws,

a

withholding

tax

at

various

rates

may

be

imposed

on

capital

gains,

dividends

and

interest.

Upon

notification

from

issuers,

a

portion

of

the

dividend

income

received

from

a

real

estate

investment

trust

may

be

redesignated

as

a

reduction

of

cost

of

the

related

investment

and/or

realized

gain.

Interest

income,

including

amortization

and

accretion

of

premiums

and

discounts

on

debt

securities,

are

recognized

daily

on

an

accrual

basis.

Income,

expenses

and

realized

and

unrealized

gains

and

losses

are

allocated

daily

to

each

class

based

on

its

relative

net

assets. For

convertible

securities,

premiums

attributable

to

the

debt

instrument

are

amortized,

but

premiums

attributable

to

the

conversion

feature

are

not

amortized.

Foreign

Currency

Translation:

Each

Fund’s

books

and

records

are

maintained

in

U.S.

dollars.

Securities

and

other

assets

and

liabilities

denominated

in

foreign

currencies

are

translated

into

U.S.

dollars

using

exchange

rates

determined

as

of

the

close

of

trading

on

the

New

York

Stock

Exchange

(“NYSE”).

Purchases

and

sales

of

investments

are

recorded

at

the

rates

of

exchange

prevailing

on

the

respective

dates

of

such

transactions.

Generally,

when

the

U.S.

dollar

rises

in

value

against

a

foreign

currency,

the

investments

denominated

in

that

currency

will

lose

value;

the

opposite

effect

occurs

if

the

U.S.

dollar

falls

in

relative

value. 

Each

Fund

does

not

isolate

the

effect

of

fluctuations

in

foreign

exchange

rates

from

the

effect

of

fluctuations

in

the

market

prices

of

investments

for

financial

reporting

purposes.

Accordingly,

the

effects

of

changes

in

exchange

rates

on

investments

are

not

segregated

in

the

Statements

of

Operations

from

the

effects

of

changes

in

market

prices

of

those

investments,

but

are

included

as

a

component

of

net

realized

and

unrealized

gain

(loss)

from

investments.

Each

Fund

reports

realized

currency

gains

(losses)

on

foreign

currency

related

transactions

as

components

of

net

realized

gain

(loss)

for

financial

reporting

purposes,

whereas

such

components

are

generally

treated

as

ordinary

income

for

U.S.

federal

income

tax

purposes.

Foreign

Taxes:

The

Funds

may

be

subject

to

foreign

taxes

(a

portion

of

which

may

be

reclaimable)

on

income,

stock

dividends,

capital

gains

on

investments,

or

certain

foreign

currency

transactions.

All

foreign

taxes

are

recorded

in

accordance

with

the

applicable

foreign

tax

regulations

and

rates

that

exist

in

the

foreign

jurisdictions

in

which

each

Fund

invests.

These

foreign

taxes,

if

any,

are

paid

by

each

Fund

and

are

reflected

in

its

Statements

of

Operations

as

follows:

foreign

taxes

withheld

at

source

are

presented

as

a

reduction

of

income,

foreign

taxes

on

securities

lending

income

are

presented

as

a

reduction

of

securities

lending

income,

foreign

taxes

on

stock

dividends

are

presented

as

“Foreign

taxes

withheld”,

and

foreign

taxes

on

capital

gains

from

sales

of

investments

and

foreign

taxes

on

foreign

currency

transactions

are

included

in

their

respective

net

realized

gain

(loss)

categories.

Foreign

taxes

payable

or

deferred

as

of

September

30,

2022

,

if

any,

are

disclosed

in

the Statements

of

Assets

and

Liabilities.

Registrant

Name

Fund

Name

Herein

Referred

To

As

Diversification

Classification

BlackRock

Funds

V

.....................

BlackRock

Sustainable

High

Yield

Bond

Fund

Sustainable

High

Yield

Bond

Diversified

BlackRock

Funds

V

.....................

BlackRock

Sustainable

Low

Duration

Bond

Fund

Sustainable

Low

Duration

Bond

Diversified

BlackRock

Bond

Fund,

Inc.

................

BlackRock

Sustainable

Total

Return

Fund

Sustainable

Total

Return

Diversified

Share

Class

Initial

Sales

Charge

Contingent

Deferred

Sales

Charge

(“CDSC”)

Conversion

Privilege

Institutional

and

Class

K

Shares

.....................................

No

No

None

Investor

A

Shares

..............................................

Yes

No

(a)

None

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

68

The

Funds

file

withholding

tax

reclaims

in

certain

jurisdictions

to

recover

a

portion

of

amounts

previously

withheld.

The

Funds

may

record

a

reclaim

receivable

based

on

collectability,

which

includes

factors

such

as

the

jurisdiction’s

applicable

laws,

payment

history

and

market

convention.

The

Statements

of

Operations

include

tax

reclaims

recorded

as

well

as

professional

and

other

fees,

if

any,

associated

with

recovery

of

foreign

withholding

taxes. 

Collateralization:

If

required

by

an

exchange

or

counterparty

agreement,

the

Funds

may

be

required

to

deliver/deposit

cash

and/or

securities

to/with

an

exchange,

or

broker-

dealer

or

custodian

as

collateral

for

certain

investments.  

Distributions:

Distributions

from

net

investment

income

are

declared

daily

and

paid

monthly. Distributions

of

capital

gains

are

recorded

on

the

ex-dividend

dates

and

made

at

least

annually.

The

character

and

timing

of

distributions

are

determined

in

accordance

with

U.S.

federal

income

tax

regulations,

which

may

differ

from

U.S.

GAAP

.  

Deferred

Compensation

Plan:

Under

the

Deferred

Compensation

Plan

(the

“Plan”)

approved

by

the

Board,

the

directors

who

are

not

“interested

persons”

of

the

Funds,

as

defined

in

the

1940

Act

(“Independent

Directors

”),

may

defer

a

portion

of

their

annual

complex-wide

compensation.

Deferred

amounts

earn

an

approximate

return

as

though

equivalent

dollar

amounts

had

been

invested

in

common

shares

of

certain

funds

in

the

BlackRock

Fixed-Income

Complex

selected

by

the

Independent

Directors

.

This

has

the

same

economic

effect

for

the

Independent 

Directors

as

if

the

Independent 

Directors

had

invested

the

deferred

amounts

directly

in

certain

funds

in

the

BlackRock

Fixed-

Income

Complex.

The

Plan

is

not

funded

and

obligations

thereunder

represent

general

unsecured

claims

against

the

general

assets

of

each

Fund,

as

applicable.

Deferred

compensation

liabilities,

if

any, are

included

in

the

Directors’

and

Officer’s

fees

payable

in

the

Statements

of

Assets

and

Liabilities

and

will

remain

as

a

liability

of

the

Funds

until

such

amounts

are

distributed

in

accordance

with

the

Plan. Net

appreciation

(depreciation)

in

the

value

of

participants’

deferral

accounts

is

allocated

among

the

participating

funds

in

the

BlackRock

Fixed-Income

Complex

and

reflected

as Directors

and

Officer

expense

on

the

Statements

of

Operations.

The Directors

and

Officer

expense

may

be

negative

as

a

result

of

a

decrease

in

value

of

the

deferred

accounts.

Organization

and

Offering

Costs:

Upon

commencement

of

operations,

organization

costs

associated

with

the

establishment

of

the

Funds

were

expensed

by

the

Funds

and

reimbursed

by the

Manager. The

Manager

reimbursed

the

Funds

the following

amounts,

which are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

Offering

costs

are

amortized

over

a

12-month

period

beginning

with

the

commencement

of

operations

of

a

class

of

shares.  

Indemnifications:

In

the

normal

course

of

business,

a

Fund

enters

into

contracts

that

contain

a

variety

of

representations

that

provide

general

indemnification.

A

Fund’s

maximum

exposure

under

these

arrangements

is

unknown

because

it

involves

future

potential

claims

against

a

Fund,

which

cannot

be

predicted

with

any

certainty.

Other:

Expenses

directly

related

to

a

Fund

or

its

classes

are

charged

to

that

Fund

or

the

applicable

class.

Expenses

directly

related

to

the

Funds

and

other

shared

expenses

prorated

to

the

Funds

are

allocated

daily

to

each

class

based

on

their

relative

net

assets

or

other

appropriate

methods.

Other

operating

expenses

shared

by

several

funds,

including

other

funds

managed

by

the

Manager,

are

prorated

among

those

funds

on

the

basis

of

relative

net

assets

or

other

appropriate

methods. 

3.

INVESTMENT

VALUATION

AND

FAIR

VALUE

MEASUREMENTS 

Investment

Valuation

Policies:

 Each

Fund’s

investments

are

valued

at

fair

value

(also

referred

to

as

“market

value”

within

the

financial

statements)

each

day

that

the

Fund

is

open

for

business

and,

for

financial

reporting

purposes,

as

of

the

report

date.

U.S.

GAAP

defines

fair

value

as

the

price

a

fund

would

receive

to

sell

an

asset

or

pay

to

transfer

a

liability

in

an

orderly

transaction

between

market

participants

at

the

measurement

date.

The

Board

of

each

Fund

has

approved

the

designation

of

each

Fund’s

Manager

as

the

valuation

designee

for

each

Fund.

Each

Fund

determines

the

fair

values

of

its

financial

instruments

using

various

independent

dealers

or

pricing

services

under

the

Manager’s

policies.

If

a

security’s

market

price

is

not

readily

available

or

does

not

otherwise

accurately

represent

the

fair

value

of

the

security,

the

security

will

be

valued

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value.

The

Manager

has

formed

a

committee

(the

“Valuation

Committee”)

to

develop

pricing

policies

and

procedures

and

to

oversee

the

pricing

function

for

all

financial

instruments,

with

assistance

from

other

BlackRock

pricing

committees.

Fair

Value

Inputs

and

Methodologies:

The

following

methods

and

inputs

are

used

to

establish

the

fair

value

of

each

Fund’s

assets

and

liabilities: 

Equity

investments

traded

on

a

recognized

securities

exchange

are

valued

at

that

day’s official

closing

price,

as

applicable,

on

the

exchange

where

the

stock

is

primarily

traded.

Equity

investments

traded

on

a

recognized

exchange

for

which

there

were

no

sales

on

that

day

may

be

valued

at

the

last

available

bid

(long

positions)

or

ask

(short

positions)

price.  

Fixed-income investments

for

which

market

quotations

are

readily

available

are

generally

valued

using

the

last

available

bid

price

or

current

market

quotations

provided

by

independent

dealers

or

third-party

pricing

services. Floating

rate

loan

interests

are

valued

at

the

mean

of

the

bid

prices

from

one

or

more

independent

brokers

or

dealers

as

obtained

from

a

third-party

pricing

service. Pricing

services

generally

value

fixed-income

securities

assuming

orderly

transactions

of

an

institutional

round

lot

size,

but

a

fund

may

hold

or

transact

in

such

securities

in

smaller,

odd

lot

sizes.

Odd

lots

may

trade

at

lower

prices

than

institutional

round

lots.

The

pricing

services

may

use

matrix

pricing

or

valuation

models

that

utilize

certain

inputs

and

assumptions

to

derive

values,

including

transaction

data

(e.g.,

recent

representative

bids

and

offers),

market

data, credit

quality

information,

perceived

market

movements,

news,

and

other

relevant

information.

Certain

fixed-income

securities,

including

asset-

backed

and

mortgage

related

securities

may

be

valued

based

on

valuation

models

that

consider

the

estimated

cash

flows

of

each

tranche

of

the

entity,

establish

a

benchmark

yield

and

develop

an

estimated

tranche

specific

spread

to

the

benchmark

yield

based

on

the

unique

attributes

of

the

tranche.

The

amortized

cost

method

of

valuation

may

be

used

with

respect

to

debt

obligations

with

sixty

days

or

less

remaining

to

maturity

unless

the

Manager

determines

such

method

does

not

represent

fair

value.

Investments

in

open-end

U.S.

mutual

funds

(including

money

market

funds) are

valued

at

that

day’s

published net

asset

value

(“NAV”).

Futures

contracts

are valued

based

on

that

day’s

last

reported

settlement

or

trade price

on

the

exchange

where

the

contract

is

traded.

Fund

Name

Amounts

Reimbursed

Sustainable

Low

Duration

Bond

.........................................................................................

$

20,000‌

Sustainable

Total

Return

..............................................................................................

20,000‌

Notes

to

Financial

Statements

(continued)

69

Notes

to

Financial

Statements

Forward

foreign

currency

exchange

contracts

are

valued

at

the

mean

between

the

bid

and

ask

prices

and

are

determined

as

of

the

close

of

trading

on

the

NYSE

based

on

that

day’s

prevailing

forward

exchange

rate

for

the

underlying

currencies.

Exchange-traded

options

are

valued

at

the

mean

between

the

last bid

and

ask

prices

at

the

close

of

the

options

market in

which

the

options

trade.

An

exchange-

traded

option

for

which there

is

no

mean

price

is

valued

at

the

last

bid

(long

positions)

or

ask

(short

positions)

price.

If

no

bid

or

ask

price

is

available,

the

prior

day’s

price will

be

used,

unless

it

is

determined

that

the

prior

day’s

price

no

longer

reflects

the

fair

value

of

the

option.

Over-the-counter

(“OTC”)

options

and

options

on

swaps

(“swaptions”)

are

valued

by

an

independent

pricing

service

using

a

mathematical

model,

which

incorporates

a

number

of

market

data

factors,

such

as

the

trades

and

prices

of

the

underlying

instruments.

Swap

agreements

are

valued

utilizing

quotes

received

daily

by

independent pricing

services

or

through

brokers,

which

are

derived

using

daily

swap

curves

and

models

that

incorporate

a

number

of

market

data

factors,

such

as

discounted

cash

flows,

trades

and

values

of

the

underlying

reference

instruments. 

Generally,

trading

in

foreign

instruments

is

substantially

completed

each

day

at

various

times

prior

to

the

close

of

trading

on

the

NYSE.

Each

business

day,

the

Funds

use

current

market

factors

supplied

by

independent

pricing

services

to

value

certain

foreign

instruments

(“Systematic

Fair

Value

Price”).

The

Systematic

Fair

Value

Price

is

designed

to

value

such

foreign

securities

at

fair

value

as

of

the

close

of

trading

on

the

NYSE,

which

follows

the

close

of

the

local

markets.

If

events

(e.g.,

market

volatility,

company

announcement or

a

natural

disaster)

occur

that

are

expected

to

materially

affect

the

value

of

such

investment,

or

in

the

event

that application

of

these

methods

of

valuation

results

in

a

price

for

an

investment

that

is

deemed

not

to

be

representative

of

the

market

value

of

such

investment,

or

if

a

price

is

not

available,

the

investment

will

be

valued

by

the

Valuation

Committee

in

accordance

with

the

Manager’s

policies

and

procedures

as

reflecting

fair

value

(“Fair

Valued

Investments”).

The

fair

valuation

approaches

that

may

be

used

by

the

Valuation

Committee include

market

approach,

income

approach

and

cost

approach.

Valuation

techniques

such

as

discounted

cash

flow,

use

of

market

comparables

and

matrix

pricing

are

types

of

valuation

approaches

and

are

typically

used

in

determining

fair

value.

When

determining

the

price

for

Fair

Valued

Investments,

the

Valuation

Committee

seeks

to

determine

the

price

that

each

Fund

might

reasonably

expect

to

receive

or

pay

from

the

current

sale

or

purchase

of

that

asset

or

liability

in

an

arm’s-length

transaction.

Fair

value

determinations

shall

be

based

upon

all

available

factors

that

the

Valuation

Committee,

deems

relevant

and

consistent

with

the

principles

of

fair

value

measurement.

For

investments

in

equity

or

debt

issued

by

privately

held

companies

or

funds

(“Private

Company”

or

collectively,

the

“Private

Companies”)

and

other

Fair

Valued

Investments,

the

fair

valuation

approaches

that

are

used

by

the

Valuation

Committee

and

third-party

pricing

services

utilized

by

the

Valuation

Committee

include one

or

a

combination

of,

but

not

limited

to,

the

following

inputs.  

Investments

in

series

of

preferred

stock

issued

by

Private

Companies

are

typically

valued

utilizing

market

approach

in

determining

the

enterprise

value

of

the

company.

Such

investments

often

contain

rights

and

preferences

that

differ

from

other

series

of

preferred

and

common

stock

of

the

same

issuer.

Enterprise

valuation

techniques

such

as

an

option

pricing

model

(“OPM”),

a

probability

weighted

expected

return

model

(“PWERM”),

current

value

method or

a

hybrid

of

those

techniques

are

used

as

deemed

appropriate

under

the

circumstances.

The

use

of these

valuation techniques

involve

a

determination

of

the

exit

scenarios

of

the

investment

in

order

to

appropriately

allocate

the

enterprise

value

of

the

company

among

the

various

parts

of

its

capital

structure. 

The

Private

Companies

are

not

subject

to

the

public

company

disclosure,

timing,

and

reporting

standards

applicable

to other

investments

held

by

a

Fund.

Typically,

the

most

recently

available

information

by

a

Private

Company

is

as

of

a

date

that

is

earlier

than

the

date

a

Fund

is

calculating

its

NAV.

This

factor

may

result

in

a

difference

between

the

value

of

the

investment

and

the

price

a

Fund

could

receive

upon

the

sale

of

the

investment. 

Fair

Value

Hierarchy:

Various

inputs

are

used

in

determining

the

fair

value

of

financial

instruments.

These

inputs

to

valuation

techniques

are

categorized

into

a

fair

value

hierarchy

consisting

of

three

broad

levels

for

financial reporting purposes

as

follows: 

Level

1

—

Unadjusted

price

quotations

in

active

markets/exchanges

for

identical

assets

or

liabilities

that

each

Fund

has

the

ability

to

access;

Level

2

—

Other

observable

inputs

(including,

but

not

limited

to,

quoted

prices

for

similar

assets

or

liabilities

in

markets

that

are

active,

quoted

prices

for

identical

or

similar

assets

or

liabilities

in

markets

that

are

not

active,

inputs

other

than

quoted

prices

that

are

observable

for

the

assets

or

liabilities

(such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks

and

default

rates)

or

other

market–corroborated

inputs);

and 

Level

3 —

Unobservable

inputs

based

on

the

best

information

available

in

the

circumstances,

to

the

extent

observable

inputs

are

not

available

(including

the

Valuation

Committee’s

assumptions

used

in

determining

the

fair

value

of

financial

instruments).

Standard

Inputs

Generally

Considered

By

The

Valuation

Committee

And  Third-Party

Pricing

Services

Market

approach

........................

(i)        

recent

market

transactions,

including

subsequent

rounds

of

financing,

in

the

underlying

investment

or

comparable  

            issuers;

(ii)        recapitalizations

and

other

transactions

across

the

capital

structure;

and

(iii)      

market

multiples

of

comparable

issuers.

Income

approach

..........................

(i)        

future

cash

flows

discounted

to

present

and

adjusted

as

appropriate

for

liquidity,

credit,

and/or

market

risks;

(ii)        quoted

prices

for

similar

investments

or

assets

in

active

markets;

and

(iii)      

other

risk

factors,

such

as

interest

rates,

yield

curves,

volatilities,

prepayment

speeds,

loss

severities,

credit

risks,

            recovery

rates,

liquidation

amounts

and/or

default

rates.

Cost

approach

............................

(i)        

audited

or

unaudited

financial

statements,

investor

communications

and

financial

or

operational

metrics

            issued

by

the

Private

Company;

(ii)        changes

in

the

valuation

of

relevant

indices

or

publicly

traded

companies

comparable

to

the

Private

Company;

(iii)      

relevant

news

and

other

public

sources;

and

(iv)      

known

secondary

market

transactions

in

the

Private

Company’s

interests

and

merger

or

acquisition

activity

            in

companies

comparable

to

the

Private

Company.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

70

The

hierarchy

gives

the

highest

priority

to

unadjusted

quoted

prices

in

active

markets

for

identical

assets

or

liabilities

(Level

1

measurements)

and

the

lowest

priority

to

unobservable

inputs

(Level

3

measurements).

Accordingly,

the

degree

of

judgment

exercised

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

The

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

fair

value

hierarchy

classification

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety. Investments

classified

within

Level

3

have

significant

unobservable

inputs

used

by

the

Valuation

Committee

in

determining

the

price

for

Fair

Valued

Investments.

Level

3

investments

include

equity

or

debt

issued

by

Private

Companies

that

may

not

have

a

secondary

market

and/or

may

have

a

limited

number

of

investors.

The

categorization

of

a

value

determined

for

financial

instruments

is

based

on

the

pricing

transparency

of

the financial

instruments

and

is

not

necessarily

an

indication

of

the

risks

associated

with

investing

in

those

securities.

4.

SECURITIES

AND

OTHER

INVESTMENTS 

Asset-Backed

and

Mortgage-Backed

Securities:

Asset-backed

securities

are

generally

issued

as

pass-through

certificates

or

as

debt

instruments.

Asset-backed

securities

issued

as

pass-through

certificates

represent

undivided

fractional

ownership

interests

in

an

underlying

pool

of

assets.

Asset-backed

securities

issued

as

debt

instruments,

which

are

also

known

as

collateralized

obligations,

are

typically

issued

as

the

debt

of

a

special

purpose

entity

organized

solely

for

the

purpose

of

owning

such

assets

and

issuing

such

debt.

Asset-backed

securities

are

often

backed

by

a

pool

of

assets

representing

the

obligations

of

a

number

of

different

parties.

The

yield

characteristics

of

certain

asset-backed

securities

may

differ

from

traditional

debt

securities.

One

such

major

difference

is

that

all

or

a

principal

part

of

the

obligations

may

be

prepaid

at

any

time

because

the

underlying

assets

(i.e.,

loans)

may

be

prepaid

at

any

time.

As

a

result,

a

decrease

in

interest

rates

in

the

market

may

result

in

increases

in

the

level

of

prepayments

as

borrowers,

particularly

mortgagors,

refinance

and

repay

their

loans.

An

increased

prepayment

rate

with

respect

to

an

asset-backed

security

will

have

the

effect

of

shortening

the

maturity

of

the

security.

In

addition,

a

fund

may

subsequently

have

to

reinvest

the

proceeds

at

lower

interest

rates.

If

a

fund

has

purchased

such

an

asset-backed

security

at

a

premium,

a

faster

than

anticipated

prepayment

rate

could

result

in

a

loss

of

principal

to

the

extent

of

the

premium

paid. 

For

mortgage

pass-through

securities

(the

“Mortgage

Assets”)

there

are

a

number

of

important

differences

among

the

agencies

and

instrumentalities

of

the

U.S.

Government

that

issue

mortgage-related

securities

and

among

the

securities

that

they

issue.

For

example,

mortgage-related

securities

guaranteed

by

Ginnie

Mae

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

Ginnie

Mae

and

such

guarantee

is

backed

by

the

full

faith

and

credit

of

the

United

States.

However,

mortgage-related

securities

issued

by

Freddie

Mac

and

Fannie

Mae,

including

Freddie

Mac

and

Fannie

Mae

guaranteed

mortgage

pass-through

certificates,

which

are

solely

the

obligations

of

Freddie

Mac

and

Fannie

Mae,

are

not

backed

by

or

entitled

to

the

full

faith

and

credit

of

the

United

States,

but

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Treasury. 

Non-agency

mortgage-backed

securities

are

securities

issued

by

non-governmental

issuers

and

have

no

direct

or

indirect

government

guarantees

of

payment

and

are

subject

to

various

risks.

Non-agency

mortgage

loans

are

obligations

of

the

borrowers

thereunder

only

and

are

not

typically

insured

or

guaranteed

by

any

other

person

or

entity.

The

ability

of

a

borrower

to

repay

a

loan

is

dependent

upon

the

income

or

assets

of

the

borrower.

A

number

of

factors,

including

a

general

economic

downturn,

acts

of

God,

terrorism,

social

unrest

and

civil

disturbances,

may

impair

a

borrower’s

ability

to

repay

its

loans.

Collateralized

Debt

Obligations:

Collateralized

debt

obligations

(“CDOs”),

including

collateralized

bond

obligations

(“CBOs”)

and

collateralized

loan

obligations

(“CLOs”),

are

types

of

asset-backed

securities.

A

CDO

is

an

entity

that

is

backed

by

a

diversified

pool

of

debt

securities

(CBOs)

or

syndicated

bank

loans

(CLOs).

The

cash

flows

of

the

CDO

can

be

split

into

multiple

segments,

called

“tranches,”

which

will

vary

in

risk

profile

and

yield.

The

riskiest

segment

is

the

subordinated

or

“equity”

tranche.

This

tranche

bears

the

greatest

risk

of

defaults

from

the

underlying

assets

in

the

CDO

and

serves

to

protect

the

other,

more

senior,

tranches

from

default

in

all

but

the

most

severe

circumstances.

Since

it

is

shielded

from

defaults

by

the

more

junior

tranches,

a

“senior”

tranche

will

typically

have

higher

credit

ratings

and

lower

yields

than

their

underlying

securities,

and

often

receive

investment

grade

ratings

from

one

or

more

of

the

nationally

recognized

rating

agencies.

Despite

the

protection

from

the

more

junior

tranches,

senior

tranches

can

experience

substantial

losses

due

to

actual

defaults,

increased

sensitivity

to

future

defaults

and

the

disappearance

of

one

or

more

protecting

tranches

as

a

result

of

changes

in

the

credit

profile

of

the

underlying

pool

of

assets. 

Multiple

Class

Pass-Through

Securities:

Multiple

class

pass-through

securities,

including

collateralized

mortgage

obligations

(“CMOs”)

and

commercial

mortgage-backed

securities,

may

be

issued

by

Ginnie

Mae,

U.S.

Government

agencies

or

instrumentalities

or

by

trusts

formed

by

private

originators

of,

or

investors

in,

mortgage

loans.

In

general,

CMOs

are

debt

obligations

of

a

legal

entity

that

are

collateralized

by

a

pool

of

residential

or

commercial

mortgage

loans

or

Mortgage

Assets.

The

payments

on

these

are

used

to

make

payments

on

the

CMOs

or

multiple

pass-through

securities.

Multiple

class

pass-through

securities

represent

direct

ownership

interests

in

the

Mortgage

Assets.

Classes

of

CMOs

include

interest

only

(“IOs”),

principal

only

(“POs”),

planned

amortization

classes

and

targeted

amortization

classes.

IOs

and

POs

are

stripped

mortgage-backed

securities

representing

interests

in

a

pool

of

mortgages,

the

cash

flow

from

which

has

been

separated

into

interest

and

principal

components.

IOs

receive

the

interest

portion

of

the

cash

flow

while

POs

receive

the

principal

portion.

IOs

and

POs

can

be

extremely

volatile

in

response

to

changes

in

interest

rates.

As

interest

rates

rise

and

fall,

the

value

of

IOs

tends

to

move

in

the

same

direction

as

interest

rates.

POs

perform

best

when

prepayments

on

the

underlying

mortgages

rise

since

this

increases

the

rate

at

which

the

principal

is

returned

and

the

yield

to

maturity

on

the

PO.

When

payments

on

mortgages

underlying

a

PO

are

slower

than

anticipated,

the

life

of

the

PO

is

lengthened

and

the

yield

to

maturity

is

reduced.

If

the

underlying

Mortgage

Assets

experience

greater

than

anticipated

prepayments

of

principal,

a

fund’s

initial

investment

in

the

IOs

may

not

fully

recoup. 

Capital

Securities

and

Trust

Preferred

Securities:

Capital

securities,

including

trust

preferred

securities,

are

typically

issued

by

corporations,

generally

in

the

form

of

interest-bearing

notes

with

preferred

securities

characteristics.

In

the

case

of

trust

preferred

securities,

an

affiliated

business

trust

of

a

corporation

issues

these

securities,

generally

in

the

form

of

beneficial

interests

in

subordinated

debentures

or

similarly

structured

securities.

The

securities

can

be

structured

with

either

a

fixed

or

adjustable

coupon

that

can

have

either

a

perpetual

or

stated

maturity

date.

For

trust

preferred

securities,

the

issuing

bank

or

corporation

pays

interest

to

the

trust,

which

is

then

distributed

to

holders

of

these

securities

as

a

dividend.

Dividends

can

be

deferred

without

creating

an

event

of

default

or

acceleration,

although

maturity

cannot

take

place

unless

all

cumulative

payment

obligations

have

been

met.

The

deferral

of

payments

does

not

affect

the

purchase

or

sale

of

these

securities

in

the

open

market.

These

securities

generally

are

rated

below

that

of

the

issuing

company’s

senior

debt

securities

and

are

freely

callable

at

the

issuer’s

option. 

Preferred

Stocks:

Preferred

stock

has

a

preference

over

common

stock

in

liquidation

(and

generally

in

receiving

dividends

as

well),

but

is

subordinated

to

the

liabilities

of

the

issuer

in

all

respects.

As

a

general

rule,

the

market

value

of

preferred

stock

with

a

fixed

dividend

rate

and

no

conversion

element

varies

inversely

with

interest

rates

and

perceived

credit

risk,

while

the

market

price

of

convertible

preferred

stock

generally

also

reflects

some

element

of

conversion

value.

Because

preferred

stock

is

junior

to

debt

securities

and

other

obligations

of

the

issuer,

deterioration

in

the

credit

quality

of

the

issuer

will

cause

greater

changes

in

the

value

of

a

preferred

stock

than

in

a

more

senior

Notes

to

Financial

Statements

(continued)

71

Notes

to

Financial

Statements

debt

security

with

similar

stated

yield

characteristics.

Unlike

interest

payments

on

debt

securities,

preferred

stock

dividends

are

payable

only

if

declared

by

the

issuer’s

board

of

directors.

Preferred

stock

also

may

be

subject

to

optional

or

mandatory

redemption

provisions. 

Floating

Rate

Loan

Interests:

Floating

rate

loan

interests

are

typically

issued

to

companies

(the

“borrower”)

by

banks,

other

financial

institutions,

or

privately

and

publicly

offered

corporations

(the

“lender”).

Floating

rate

loan

interests

are

generally

non-investment

grade,

often

involve

borrowers

whose

financial

condition

is

troubled

or

uncertain

and

companies

that

are

highly

leveraged

or

in

bankruptcy

proceedings.

In

addition,

transactions

in

floating

rate

loan

interests

may

settle

on

a

delayed

basis,

which

may

result

in

proceeds

from

the

sale

not

being

readily

available

for

a

fund

to

make

additional

investments

or

meet

its

redemption

obligations.

Floating

rate

loan

interests

may

include

fully

funded

term

loans

or

revolving

lines

of

credit.

Floating

rate

loan

interests

are

typically

senior

in

the

corporate

capital

structure

of

the

borrower.

Floating

rate

loan

interests

generally

pay

interest

at

rates

that

are

periodically

determined

by

reference

to

a

base

lending

rate

plus

a

premium.

Since

the

rates

reset

only

periodically,

changes

in

prevailing

interest

rates

(and

particularly

sudden

and

significant

changes)

can

be

expected

to

cause

some

fluctuations

in

the

NAV

of

a

fund

to

the

extent

that

it

invests

in

floating

rate

loan

interests.

The

base

lending

rates

are

generally

the

lending

rate

offered

by

one

or

more

European

banks,

such

as

the

London

Interbank

Offered

Rate

(“LIBOR”),

the

prime

rate

offered

by

one

or

more

U.S.

banks

or

the

certificate

of

deposit

rate.

Floating

rate

loan

interests

may

involve

foreign

borrowers,

and

investments

may

be

denominated

in

foreign

currencies.

These

investments

are

treated

as

investments

in

debt

securities

for

purposes

of

a

fund’s

investment

policies. 

When

a

fund

purchases

a

floating

rate

loan

interest,

it

may

receive

a

facility

fee

and

when

it

sells

a

floating

rate

loan

interest,

it

may

pay

a

facility

fee.

On

an

ongoing

basis,

a

fund

may

receive

a

commitment

fee

based

on

the

undrawn

portion

of

the

underlying

line

of

credit

amount

of

a

floating

rate

loan

interest.

Facility

and

commitment

fees

are

typically

amortized

to

income

over

the

term

of

the

loan

or

term

of

the

commitment,

respectively.

Consent

and

amendment

fees

are

recorded

to

income

as

earned.

Prepayment

penalty

fees,

which

may

be

received

by

a

fund

upon

the

prepayment

of

a

floating

rate

loan

interest

by

a

borrower,

are

recorded

as

realized

gains.

A

fund

may

invest

in

multiple

series

or

tranches

of

a

loan.

A

different

series

or

tranche

may

have

varying

terms

and

carry

different

associated

risks.

Floating

rate

loan

interests

are

usually

freely

callable

at

the

borrower’s

option.

A

fund

may

invest

in

such

loans

in

the

form

of

participations

in

loans

(“Participations”)

or

assignments

(“Assignments”)

of

all

or

a

portion

of

loans

from

third

parties.

Participations

typically

will

result

in

a

fund

having

a

contractual

relationship

only

with

the

lender,

not

with

the

borrower.

A

fund

has

the

right

to

receive

payments

of

principal,

interest

and

any

fees

to

which

it

is

entitled

only

from

the

lender

selling

the

Participation

and

only

upon

receipt

by

the

lender

of

the

payments

from

the

borrower.

In

connection

with

purchasing

Participations,

a

fund

generally

will

have

no

right

to

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement,

nor

any

rights

of

offset

against

the

borrower.

A

fund

may

not

benefit

directly

from

any

collateral

supporting

the

loan

in

which

it

has

purchased

the

Participation.

As

a

result,

a

fund

assumes

the

credit

risk

of

both

the

borrower

and

the

lender

that

is

selling

the

Participation.

A

fund’s

investment

in

loan

participation

interests

involves

the

risk

of

insolvency

of

the

financial

intermediaries

who

are

parties

to

the

transactions.

In

the

event

of

the

insolvency

of

the

lender

selling

the

Participation,

a

fund

may

be

treated

as

a

general

creditor

of

the

lender

and

may

not

benefit

from

any

offset

between

the

lender

and

the

borrower.

Assignments

typically

result

in

a

fund

having

a

direct

contractual

relationship

with

the

borrower,

and

a

fund

may

enforce

compliance

by

the

borrower

with

the

terms

of

the

loan

agreement.

TBA

Commitments:

TBA

commitments

are

forward

agreements

for

the

purchase

or

sale

of

securities,

including

mortgage-backed

securities

for

a

fixed

price,

with

payment

and

delivery

on

an

agreed

upon

future

settlement

date.

The

specific

securities

to

be

delivered

are

not

identified

at

the

trade

date.

However,

delivered

securities

must

meet

specified

terms,

including

issuer,

rate

and

mortgage

terms.

When

entering

into

TBA

commitments,

a

fund

may

take

possession

of

or

deliver

the

underlying

mortgage-backed

securities

but

can

extend

the

settlement

or

roll

the

transaction.

TBA

commitments

involve

a

risk

of

loss

if

the

value

of

the

security

to

be

purchased

or

sold

declines

or

increases,

respectively,

prior

to

settlement

date,

if

there

are

expenses

or

delays

in

connection

with

the

TBA

transactions,

or

if

the

counterparty

fails

to

complete

the

transaction.

In

order

to

better

define

contractual

rights

and

to

secure

rights

that

will

help

a

fund

mitigate its

counterparty

risk,

TBA

commitments

may

be

entered

into

by

a

fund

under

Master

Securities

Forward

Transaction

Agreements

(each,

an

“MSFTA”).

An

MSFTA

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

default

and/or

termination

event. The

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

the

collateral

currently

pledged

by

a

fund

and

the

counterparty. Cash

collateral

that

has

been

pledged

to

cover

the

obligations

of

a

fund

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

for

TBA

commitments

or

cash

received

as

collateral

for

TBA

commitments,

respectively.

Non-cash

collateral

pledged

by

a

fund,

if

any,

is

noted

in

the

Schedules

of

Investments. Typically,

a

fund

is

permitted

to

sell,

re-pledge

or

use

the

collateral

it

receives;

however,

the

counterparty

is

not

permitted

to

do

so.

To

the

extent

amounts

due

to

a

fund

are

not

fully

collateralized,

contractually

or

otherwise,

a

fund

bears

the

risk

of

loss

from

counterparty

non-performance.

Mortgage

Dollar

Roll

Transactions

:

The

Funds

may

sell

TBA

mortgage-backed

securities

and

simultaneously

contract

to

repurchase

substantially

similar

(i.e.,

same

type,

coupon

and

maturity)

securities

on

a

specific

future

date

at

an

agreed

upon

price.

During

the

period

between

the

sale

and

repurchase,

a

fund

is

not

entitled

to

receive

interest

and

principal

payments

on

the

securities

sold.

Mortgage

dollar

roll

transactions

are

treated

as

purchases

and

sales

and

a

fund realizes

gains

and

losses

on

these

transactions.

Mortgage

dollar

rolls

involve

the

risk

that

the

market

value

of

the

securities

that

a

fund

is

required

to

purchase

may

decline

below

the

agreed

upon

repurchase

price

of

those

securities. 

5.

Derivative

Financial

Instruments

The

Funds

engage

in

various

portfolio

investment

strategies

using

derivative

contracts

both

to

increase

the

returns

of

the

Funds

and/or

to

manage

their

exposure

to

certain

risks

such

as

credit

risk,

equity

risk,

interest

rate

risk,

foreign

currency

exchange

rate

risk,

commodity

price

risk

or

other

risks

(e.g.,

inflation

risk).

Derivative

financial

instruments

categorized

by

risk

exposure

are

included

in

the

Schedules

of

Investments.

These

contracts

may

be

transacted

on

an

exchange

or

OTC.

Futures

Contracts:

Futures

contracts

are

purchased

or

sold

to

gain

exposure

to,

or

manage

exposure

to,

changes

in

interest

rates

(interest

rate

risk)

and

changes

in

the

value

of

equity

securities

(equity

risk)

or

foreign

currencies

(foreign

currency

exchange

rate

risk)

.

Futures

contracts

are

exchange-traded agreements

between

the

Funds

and

a

counterparty

to

buy

or

sell

a

specific

quantity

of

an

underlying

instrument

at

a

specified

price

and

on

a

specified

date.

Depending

on

the

terms

of

a

contract,

it

is

settled

either

through

physical

delivery

of

the

underlying

instrument

on

the

settlement

date

or

by

payment

of

a

cash

amount

on

the

settlement

date.

Upon

entering

into

a

futures

contract,

the

Funds

are

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

a

contract’s

size

and

risk

profile.

The

initial

margin

deposit

must

then

be

maintained

at

an

established

level

over

the

life

of

the

contract.

Amounts

pledged,

which

are

considered

restricted,

are

included

in

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

72

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited,

if

any, are

shown

as

cash

pledged

for

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract,

the

Funds

agree

to

receive

from

or

pay

to

the

broker

an

amount

of

cash

equal

to

the

daily

fluctuation

in

market

value

of

the

contract

(“variation

margin”).

Variation

margin

is

recorded

as

unrealized

appreciation

(depreciation)

and,

if

any,

shown

as

variation

margin

receivable

(or

payable)

on

futures

contracts

in

the

Statements

of

Assets

and

Liabilities.

When

the

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

notional

amount

of

the

contract

at

the

time

it

was

opened

and

the

notional

amount

at

the

time

it

was

closed.

The

use

of

futures

contracts

involves

the

risk

of

an

imperfect

correlation

in

the

movements

in

the

price

of

futures

contracts

and

interest

rates,

foreign

currency

exchange

rates

or

underlying

assets.

Forward

Foreign

Currency

Exchange

Contracts

:

Forward

foreign

currency

exchange

contracts

are

entered

into

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

A

forward

foreign

currency

exchange

contract

is

an

agreement

between

two

parties

to

buy

and

sell

a

currency

at

a

set

exchange

rate

on

a

specified

date.

These

contracts

help

to

manage

the

overall

exposure

to

the

currencies

in

which

some

of

the

investments

held

by

the

Funds

are

denominated

and

in

some

cases,

may

be

used

to

obtain

exposure

to

a

particular

market.

The

contracts

are

traded

OTC

and

not

on

an

organized

exchange.

The

contract

is

marked-to-market

daily

and

the

change

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

in

the

Statements

of

Assets

and

Liabilities.

When

a

contract

is

closed,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

value

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

Non-deliverable

forward

foreign

currency

exchange

contracts

are

settled

with

the

counterparty

in

cash

without

the

delivery

of

foreign

currency.

The

use

of

forward

foreign

currency

exchange

contracts

involves

the

risk

that

the

value

of

a

forward

foreign

currency

exchange

contract

changes

unfavorably

due

to

movements

in

the

value

of

the

referenced

foreign

currencies,

and

such

value

may

exceed

the

amount(s)

reflected

in

the Statements

of

Assets

and

Liabilities. Cash

amounts

pledged

for

forward

foreign

currency

exchange

contracts

are

considered

restricted

and

are

included

in

cash

pledged

as

collateral

for

OTC

derivatives

in

the

Statements

of

Assets

and

Liabilities.

A

Fund’s

risk

of

loss

from

counterparty

credit

risk

on

OTC

derivatives

is

generally

limited

to

the

aggregate

unrealized

gain

netted

against

any

collateral

held

by

the

Fund.

Options:

The

Funds

may purchase

and

write

call

and

put

options

to

increase

or

decrease

their

exposure

to

the

risks

of

underlying

instruments,

including

equity

risk,

interest

rate

risk

and/or

commodity

price

risk

and/or,

in

the

case

of

options

written,

to

generate

gains

from

options

premiums.

A

call

option

gives

the

purchaser

(holder)

of

the

option

the

right

(but

not

the

obligation)

to

buy,

and

obligates

the

seller

(writer)

to

sell

(when

the

option

is

exercised)

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

A

put

option

gives

the

holder

the

right

to

sell

and

obligates

the

writer

to

buy

the

underlying

instrument

at

the

exercise

or

strike

price

at

any

time

or

at

a

specified

time

during

the

option

period.

Premiums

paid

on

options

purchased

and

premiums

received

on

options

written,

as

well

as

the

daily

fluctuation

in

market

value,

are

included

in

investments

at

value

–

unaffiliated

and

options

written

at

value,

respectively,

in

the

Statements

of

Assets

and

Liabilities.

When

an

instrument

is

purchased

or

sold

through

the

exercise

of

an

option,

the

premium

is

offset

against

the

cost

or

proceeds

of

the

underlying

instrument.

When

an

option

expires,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

of

the

premiums

received

or

paid.

When

an

option

is

closed

or

sold,

a

gain

or

loss

is

recorded

in

the

Statements

of

Operations

to

the

extent

the

cost

of

the

closing

transaction

exceeds

the

premiums

received

or

paid.

When

the

Funds

write

a

call

option,

such

option

is

typically

“covered,”

meaning

that

they

hold

the

underlying

instrument

subject

to

being

called

by

the

option

counterparty.

When

the

Funds

write

a

put

option,

cash

is

segregated

in

an

amount

sufficient

to

cover

the

obligation.

These

amounts,

which

are

considered

restricted,

are

included

in

cash

pledged

as

collateral

for

options

written

in

the

Statements

of

Assets

and

Liabilities.

Swaptions

–

The

Funds

may purchase

and

write

swaptions

primarily

to

preserve

a

return

or

spread

on

a

particular

investment

or

portion

of

the

Funds’

holdings,

as

a

duration

management

technique

or

to

protect

against

an

increase

in

the

price

of

securities

it

anticipates

purchasing

at

a

later

date.

The

purchaser

and

writer

of

a

swaption

is

buying

or

granting

the

right

to

enter

into

a

previously

agreed

upon

interest

rate

or

credit

default

swap

agreement

(interest

rate

risk

and/or

credit

risk)

at

any

time

before

the

expiration

of

the

option.

Foreign

currency

options

– The

Funds

may purchase

and

write

foreign

currency

options,

foreign

currency

futures

and

options

on

foreign

currency

futures

to

gain

or

reduce

exposure

to

foreign

currencies

(foreign

currency

exchange

rate

risk).

Foreign

currency

options

give

the

purchaser

the

right

to

buy

from

or

sell

to

the

writer

a

foreign

currency

at

any

time

before

the

expiration

of

the

option.

In

purchasing

and

writing

options,

the

Funds

bear

the

risk

of

an

unfavorable

change

in

the

value

of

the

underlying

instrument

or

the

risk

that

they

may

not

be

able

to

enter

into

a

closing

transaction

due

to

an

illiquid

market.

Exercise

of

a

written

option

could

result

in

the

Funds

purchasing

or

selling

a

security

when they

otherwise

would

not,

or

at

a

price

different

from

the

current

market

value.

Swaps:

Swap

contracts

are

entered

into

to

manage

exposure

to

issuers,

markets

and

securities.

Such

contracts

are

agreements

between

the

Funds

and

a

counterparty

to

make

periodic

net

payments

on

a

specified

notional

amount

or

a

net

payment

upon

termination.

Swap

agreements

are

privately

negotiated

in

the

OTC

market

and

may

be

entered

into

as

a

bilateral

contract

(“OTC

swaps”)

or

centrally

cleared

(“centrally

cleared

swaps”).

For

OTC

swaps,

any

upfront

premiums

paid

and

any

upfront

fees

received

are

shown

as

swap

premiums

paid

and

swap

premiums

received,

respectively,

in

the

Statements

of

Assets

and

Liabilities

and

amortized

over

the

term

of

the

contract.

The

daily

fluctuation

in

market

value

is

recorded

as

unrealized

appreciation

(depreciation)

on

OTC

Swaps

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

or

paid

are

recorded

in

the

Statements

of

Operations

as

realized

gains

or

losses,

respectively.

When

an

OTC

swap

is

terminated,

a

realized

gain

or

loss

is

recorded

in

the

Statements

of

Operations

equal

to

the

difference

between

the

proceeds

from

(or

cost

of)

the

closing

transaction

and

the

Funds’

basis

in

the

contract,

if

any.

Generally,

the

basis

of

the

contract

is

the

premium

received

or

paid.

In

a

centrally

cleared

swap,

immediately

following

execution

of

the

swap

contract,

the

swap

contract

is

novated

to

a

central

counterparty

(the

“CCP”)

and

the

CCP

becomes

the Funds’

counterparty

on

the

swap. Each

Fund is

required

to

interface

with

the

CCP

through

the

broker.

Upon

entering

into

a

centrally

cleared

swap, each

Fund is

required

to

deposit

initial

margin

with

the

broker

in

the

form

of

cash

or

securities

in

an

amount

that

varies

depending

on

the

size

and

risk

profile

of

the

particular

swap.

Securities

deposited

as

initial

margin

are

designated

in

the

Schedules

of

Investments

and

cash

deposited

is

shown

as

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Amounts

pledged,

which

are

considered

restricted

cash,

are

included

in

cash

pledged

for

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Pursuant

to

the

contract, each

Fund

agrees

to

receive

from

or

pay

to

the

broker

variation

margin.

Variation

margin

is

recorded

as

unrealized

appreciation

Notes

to

Financial

Statements

(continued)

73

Notes

to

Financial

Statements

(depreciation)

and

shown

as

variation

margin

receivable

(or

payable)

on

centrally

cleared

swaps

in

the

Statements

of

Assets

and

Liabilities.

Payments

received

from

(paid

to)

the

counterparty

are

amortized

over

the

term

of

the

contract

and recorded

as

realized

gains

(losses)

in

the

Statements

of

Operations,

including

those

at

termination.

Credit

default

swaps

—

Credit

default

swaps

are

entered

into

to

manage

exposure

to

the

market

or

certain

sectors

of

the

market,

to

reduce

risk

exposure

to

defaults

of

corporate

and/or

sovereign

issuers

or

to

create

exposure

to

corporate

and/or

sovereign

issuers

to

which

a

fund

is

not

otherwise

exposed

(credit

risk).

The

Funds

may

either

buy

or

sell

(write)

credit

default

swaps

on

single-name

issuers

(corporate

or

sovereign),

a

combination

or

basket

of

single-name

issuers

or

traded

indexes.

Credit

default

swaps

are

agreements

in

which

the

protection

buyer

pays

fixed

periodic

payments

to

the

seller

in

consideration

for

a

promise

from

the

protection

seller

to

make

a

specific

payment

should

a

negative

credit

event

take

place

with

respect

to

the

referenced

entity

(e.g.,

bankruptcy,

failure

to

pay,

obligation

acceleration,

repudiation,

moratorium

or

restructuring).

As

a

buyer,

if

an

underlying

credit

event

occurs,

the

Funds

will

either

(i)

receive

from

the

seller

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

security

or

underlying

securities

comprising

the

index,

or

(ii)

receive

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

As

a

seller

(writer),

if

an

underlying

credit

event

occurs,

the

Funds

will

either

pay

the

buyer

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

security

or

underlying

securities

comprising

the

index

or

pay

a

net

settlement

of

cash

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

security

or

underlying

securities

comprising

the

index.

Interest

rate

swaps

—

Interest

rate

swaps

are

entered

into

to

gain

or

reduce

exposure

to

interest

rates

or

to

manage

duration,

the

yield

curve

or

interest

rate

(interest

rate

risk).

Interest

rate

swaps

are

agreements

in

which

one

party

pays

a

stream

of

interest

payments,

either

fixed

or

floating,

in

exchange

for

another

party’s

stream

of

interest

payments,

either

fixed

or

floating,

on

the

same

notional

amount

for

a

specified

period

of

time.

In

more

complex

interest

rate

swaps,

the

notional

principal

amount

may

decline

(or

amortize)

over

time.

Inflation

swaps

—

Inflation

swaps

are

entered

into

to

gain

or

reduce

exposure

to

inflation

(inflation

risk).

In

an

inflation

swap,

one

party

makes

fixed

interest

payments

on

a

notional

principal

amount

in

exchange

for

another

party’s

variable

payments

based

on

an

inflation

index,

such

as

the

Consumer

Price

Index.

Swap

transactions

involve,

to

varying

degrees,

elements

of

interest

rate,

credit

and

market

risks

in

excess

of

the

amounts

recognized

in

the

Statements

of

Assets

and

Liabilities.

Such

risks

involve

the

possibility

that

there

will

be

no

liquid

market

for

these

agreements,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

the

contractual

terms

in

the

agreements,

and

that

there

may

be

unfavorable

changes

in

interest

rates

and/or

market

values

associated

with

these

transactions.

Master

Netting

Arrangements:

In

order

to

define

its

contractual

rights

and

to

secure

rights

that

will

help

it mitigate its

counterparty

risk, a

Fund

may

enter

into

an

International

Swaps

and

Derivatives

Association,

Inc.

Master

Agreement

(“ISDA

Master

Agreement”)

or

similar

agreement

with

its

counterparties.

An

ISDA

Master

Agreement

is

a

bilateral

agreement

between a

Fund

and

a

counterparty

that

governs

certain

OTC

derivatives

and

typically

contains,

among

other

things,

collateral

posting

terms

and

netting

provisions

in

the

event

of

a

default

and/or

termination

event.

Under

an

ISDA

Master

Agreement, a

Fund

may,

under

certain

circumstances,

offset

with

the

counterparty

certain

derivative

financial

instruments’

payables

and/or

receivables

with

collateral

held

and/or

posted

and

create

one

single

net

payment.

The

provisions

of

the

ISDA

Master

Agreement

typically

permit

a

single

net

payment

in

the

event

of

default

including

the

bankruptcy

or

insolvency

of

the

counterparty.

However,

bankruptcy

or

insolvency

laws

of

a

particular

jurisdiction

may

impose

restrictions

on

or

prohibitions

against

the

right

of

offset

in

bankruptcy,

insolvency

or

other

events.

Collateral

Requirements:

For

derivatives

traded

under

an

ISDA

Master

Agreement,

the

collateral

requirements

are

typically

calculated

by

netting

the

mark-to-market

amount

for

each

transaction

under

such

agreement

and

comparing

that

amount

to

the

value

of

any

collateral

currently

pledged

by

the

Funds

and

the

counterparty.

Cash

collateral

that

has

been

pledged

to

cover

obligations

of

the

Funds

and

cash

collateral

received

from

the

counterparty,

if

any,

is

reported

separately

in

the

Statements

of

Assets

and

Liabilities

as

cash

pledged

as

collateral

and

cash

received

as

collateral,

respectively.

Non-cash

collateral

pledged

by

the

Funds,

if

any,

is

noted

in

the

Schedules

of

Investments.

Generally,

the

amount

of

collateral

due

from

or

to

a

counterparty

is

subject

to

a

certain

minimum

transfer

amount

threshold

before

a

transfer

is

required,

which

is

determined

at

the

close

of

business

of

the

Funds.

Any

additional

required

collateral

is

delivered

to/pledged

by

the

Funds

on

the

next

business

day.

Typically,

the

counterparty

is

not

permitted

to

sell,

re-pledge

or

use

cash

and

non-cash

collateral

it

receives.

A

Fund

generally

agrees

not

to

use

non-cash

collateral

that

it

receives

but

may,

absent

default

or

certain

other

circumstances

defined

in

the

underlying

ISDA

Master

Agreement,

be

permitted

to

use

cash

collateral

received.

In

such

cases,

interest

may

be

paid

pursuant

to

the

collateral

arrangement

with

the

counterparty.

To

the

extent

amounts

due

to

the

Funds

from the

counterparties

are

not

fully

collateralized, each

Fund bears

the

risk

of

loss

from

counterparty

non-performance.

Likewise,

to

the

extent

the

Funds have

delivered

collateral

to

a

counterparty

and

stand

ready

to

perform

under

the

terms

of

their

agreement

with

such

counterparty, each

Fund bears

the

risk

of

loss

from

a

counterparty

in

the

amount

of

the

value

of

the

collateral

in

the

event

the

counterparty

fails

to

return

such

collateral.

Based

on

the

terms

of

agreements,

collateral

may

not

be

required

for

all

derivative

contracts.

For

financial

reporting

purposes,

the

Funds

do

not

offset

derivative

assets

and

derivative

liabilities

that

are

subject

to

netting

arrangements,

if

any,

in

the

Statements

of

Assets

and

Liabilities.

6.

INVESTMENT

ADVISORY

AGREEMENT

AND

OTHER

TRANSACTIONS

WITH

AFFILIATES 

Investment

Advisory:

The

Corporation

and

the

Trust,

on

behalf

of

the

applicable

Funds,

entered

into

an

Investment

Advisory

Agreement

with

the

Manager,

the

Funds’

investment

adviser

and

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

Inc.

(“BlackRock”),

to

provide

investment

advisory

and

administrative

services.

The

Manager

is

responsible

for

the

management

of each

Fund’s

portfolio

and

provides

the

personnel,

facilities,

equipment

and

certain

other

services

necessary

to

the

operations

of each

Fund.

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

74

For

such

services,

each

Fund

pays

the

Manager

a

monthly

fee

at

an

annual

rate

equal

to

the

following

percentages

of

the

average

daily

value

of

each

Fund’s

net

assets:

With

respect

to

each

Fund,

the

Manager

entered

into

separate

sub-advisory

agreements

with

each

of

BlackRock

International

Limited

(“BIL”),

and

with

respect

to

Sustainable

Low

Duration

Bond

and

Sustainable

Total

Return,

BlackRock

(Singapore)

Limited

(“BSL”)

(collectively,

the

“Sub-Advisers”),

each

an

affiliate

of

the

Manager.

The

Manager

pays

BIL

and

BSL

for

services

they

provide

for

that

portion

of

each

Fund

for

which

BIL

and

BSL,

as

applicable,

acts

as

sub-adviser,

a

monthly

fee

that

is

equal

to

a

percentage

of

the

investment

advisory

fees

paid

by

each

Fund

to

the

Manager.

Service

Fees:

The

Corporation

and

the Trust,

on behalf

of

the

applicable Funds,

entered

into

a

Distribution

Agreement

and

a Distribution and

Service

Plan

with

BlackRock

Investments,

LLC

(“BRIL”),

an

affiliate

of

the

Manager. Pursuant

to

the

Distribution

and

Service Plan

and in

accordance

with

Rule

12b-1

under

the

1940

Act,

each

Fund

pays

BRIL

ongoing

service fees.

The

fees

are

accrued

daily

and

paid

monthly

at

annual

rates

based

upon

the

average

daily

net

assets

of

the

relevant

share

class

of

each

Fund

as

follows:

BRIL

and

broker-dealers,

pursuant

to

sub-agreements

with

BRIL,

provide

shareholder

servicing to

the

Funds.

The

ongoing

service

fee compensates

BRIL

and

each

broker-

dealer

for

providing

shareholder

servicing related

services

to

shareholders.

For

the period

ended

September

30,

2022,

the

following

table

shows

the

class

specific

service

borne

directly

by

each

share

class

of

each

Fund:

Administration:

The

Corporation

and

the

Trust,

on

behalf

of

the

applicable

Funds,

entered

into

an

Administration

Agreement

with

the

Manager,

an

indirect,

wholly-owned

subsidiary

of

BlackRock,

to

provide

administrative

services.

For

these

services,

the

Manager

receives

an

administration

fee

computed

daily

and

payable

monthly,

based

on

a

percentage

of

the

average

daily

net

assets

of

each

Fund.

The

administration

fee,

which

is

shown

as

administration

in

the

Statements

of

Operations,

is

paid

at

the

annual

rates

below.

In

addition,

the

Manager

charges

each

of

the

share

classes

an

administration

fee,

which

is

shown

as

administration —

class

specific

in

the

Statements

of

Operations,

at

an

annual

rate

of

0.02% of

the

average

daily

net

assets

of

each

respective

class.

For

the

period

ended

September

30,

2022, the

following

table

shows

the

class

specific

administration

fees

borne

directly

by

each

share

class

of

each

Fund:

Transfer

Agent:

Pursuant

to

written

agreements,

certain

financial

intermediaries,

some

of

which

may

be

affiliates,

provide

the

Funds

with

sub-accounting,

recordkeeping,

sub-transfer

agency

and

other

administrative

services

with

respect

to

servicing

of

underlying

investor

accounts.

For

these

services,

these

entities

receive

an

asset-based

fee

or

an

annual

fee

per

shareholder

account,

which

will

vary

depending

on

share

class

and/or

net

assets.

For

the 

period

 ended September

30,

2022,

the

Funds 

did

not

pay

any

amounts

to

affiliates

in

return

for

these

services.

The

Manager

maintains

a

call

center

that

is

responsible

for

providing

certain

shareholder

services

to

the

Funds.

Shareholder

services

include

responding

to

inquiries

and

processing

purchases

and

sales

based

upon

instructions

from

shareholders.

For

the period

ended

September

30,

2022,

the

Funds

did

not

pay

any

amounts

to

affiliates

in

return

for

these

services.

Investment

Advisory

Fees

Average

Daily

Net

Assets

Sustainable

High

Yield

Bond

Sustainable

Low

Duration

Bond

Sustainable

Total

Return

First

$1

billion

...............................................................................

0.500‌%

0.310‌%

0.390‌%

$1

billion

-

$3

billion

...........................................................................

0.470‌

0.290‌

0.370‌

$3

billion

-

$5

billion

...........................................................................

0.450‌

0.280‌

0.350‌

$5

b

illion

-

$10

b

illion

..........................................................................

0.440‌

0.270‌

0.340‌

Greater

than

$10

billion

.........................................................................

0.430‌

0.260‌

0.330‌

Share

Class

Service

Fees

Investor

A

..............................................................................................................

0.25‌%

Fund

Name

Investor

A

Sustainable

High

Yield

Bond

..................................................................................................

$

234

Sustainable

Low

Duration

Bond

................................................................................................

353

Sustainable

Total

Return

.....................................................................................................

237

Average

Daily

Net

Assets

Administration

Fees

First

$500

million

0.0425

%

$500

million

-

$1

billion

0.0400

$1

billion

-

$2

billion

0.0375

$2

billion

-

$4

billion

0.0350

$4

billion

-

$13

billion

0.0325

Greater

than

$13

billion

0.0300

Fund

Name

Institutional

Investor

A

Class

K

Total

Sustainable

High

Yield

Bond

...................................................................

$

18‌

$

18‌

$

9,188‌

$

9,224‌

Sustainable

Low

Duration

Bond

.................................................................

17‌

28‌

9,164‌

9,209‌

Sustainable

Total

Return

......................................................................

17‌

18‌

8,765‌

8,800‌

Notes

to

Financial

Statements

(continued)

75

Notes

to

Financial

Statements

For

the

period ended

September

30,

2022,

the

following

table

shows

the

class

specific

transfer

agent

fees

borne

directly

by

each

share

class

of

each

Fund:

Other

Fees:

For

the

period

 ended 

September

30,

2022

,

affiliates

earned

underwriting

discounts,

direct

commissions

and

dealer

concessions

on

sales

of

the 

Sustainable

Low

Duration

Bond

's

Investor

A

Shares for

a

total

of

$11

.

Expense

Limitations,

Waivers,

Reimbursements

and

Recoupments:

The

Manager

contractually

agreed

to

waive

its

investment

advisory

fees

by

the

amount

of

investment

advisory

fees each

Fund

pays

to

the

Manager

indirectly

through

its

investment

in

affiliated

money

market

funds

(the

“affiliated

money

market

fund

waiver”)

through

June

30,

2023.

The

contractual

agreement

may

be

terminated upon

90

days’

notice

by

a

majority

of

the

Independent

Directors,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of a

Fund.

The

amount

of

waivers

and/or

reimbursements

of

fees

and

expenses

made

pursuant

to

the

expense

limitation

described

below

will

be

reduced

by

the

amount

of

the

affiliated

money

market

fund

waiver. These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations.

For

the

period

ended

September

30,

2022,

the

amounts

waived

were

as

follows: 

The

Manager

has

contractually

agreed

to

waive

its

investment

advisory

fee

with

respect

to

any

portion

of each

Fund’s

assets

invested

in

affiliated

equity

and

fixed-

income mutual

funds

and

affiliated

exchange-traded

funds

that

have

a

contractual

management

fee

through

June

30,

2023.

The

contractual

agreement

may

be

terminated

upon

90

days’

notice

by

a

majority

of

the

Independent

Directors,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

These

amounts

are

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations. For

the

period

ended

September

30,

2022,

there

were

no

fees

waived

by

the

Manager

pursuant

to

this

arrangement.

With

respect

to

each

Fund,

the

Manager

contractually

agreed

to

waive

and/or

reimburse

fees

or

expenses

in

order

to

limit

expenses,

excluding

interest

expense,

dividend

expense,

tax

expense,

acquired

fund

fees

and

expenses,

and

certain

other

fund

expenses,

which

constitute

extraordinary

expenses

not

incurred

in

the

ordinary

course

of each

Fund’s

business

(“expense

limitation”).

The

expense

limitations

as

a

percentage

of

average

daily

net

assets

are

as

follows:

The

Manager

has

agreed

not

to

reduce

or

discontinue

the

contractual

expense

limitations

through

June

30,

2023,

unless

approved

by

the

Board,

including

a

majority

of

Independent

Directors,

or

by

a

vote

of

a

majority

of

the

outstanding

voting

securities

of

a

Fund.

For

the

period

ended

September

30,

2022,

the

amounts

included

in

fees

waived

and/or

reimbursed

by

the

Manager

in

the

Statements

of

Operations

were

as

follows:

The

Funds

also

had

a

waiver

of

administration

fees,

which

are

included

in

Administration

fees

waived

by

the

Manager

in

the

Statements

of

Operations.

For

the

period

ended

September

30,

2022,

the

amounts

waived

were

as

follows:

Fund

Name

Institutional

Investor

A

Class

K

Total

Sustainable

High

Yield

Bond

...................................................................

$

268‌

$

268‌

$

268‌

$

804‌

Sustainable

Low

Duration

Bond

.................................................................

250‌

250‌

250‌

750‌

Sustainable

Total

Return

......................................................................

250‌

250‌

250‌

750‌

Fund

Name

Amounts

Waived

Sustainable

High

Yield

Bond

.............................................................................................

$

424

Sustainable

Low

Duration

Bond

...........................................................................................

777

Sustainable

Total

Return

................................................................................................

1,670

Fund

Name

Institutional

Investor

A

Class

K

Sustainable

High

Yield

Bond

..........................................................................

0.58‌%

0.83‌%

0.53‌%

Sustainable

Low

Duration

Bond

........................................................................

0.40‌

0.65‌

0.35‌

Sustainable

Total

Return

.............................................................................

0.44‌

0.75‌

0.39‌

Fund

Name

Fees

Waived

and/or

Reimbursed

by

the

Manager

Sustainable

High

Yield

Bond

...................................................................................................

$

401,022

Sustainable

Low

Duration

Bond

.................................................................................................

280,980

Sustainable

Total

Return

......................................................................................................

362,545

Sustainable

High

Yield

Bond

.............................................................................................

$

18,643‌

Sustainable

Low

Duration

Bond

...........................................................................................

19,574‌

Sustainable

Total

Return

...............................................................................................

18,703‌

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

76

In

addition,

these

amounts

waived

and/or

reimbursed

by

the

Manager are

included

in administration

fees

waived

by

the

Manager

—

class

specific,

respectively,

and

transfer

agent

fees

waived

and/or

reimbursed

by

the

Manager

—

class

specific,

respectively,

in

the

Statements

of

Operations.

For

the period

ended

September

30,

2022,

class

specific

expense

waivers

and/or

reimbursements were

as

follows: 

With

respect

to

the

contractual

expense

limitation,

if

during

a

Fund’s

fiscal

year

the

operating

expenses

of

a

share

class,

that

at

any

time

during

the

prior

two

fiscal

years

received

a

waiver

and/or

reimbursement

from

the

Manager,

are

less

than

the

current

expense

limitation

for

that

share

class,

the

Manager

is

entitled

to

be

reimbursed

by

such

share

class

up

to

the

lesser

of:

(a)

the

amount

of

fees

waived

and/or

expenses

reimbursed

during

those

prior

two

fiscal

years

under

the

agreement

and

(b)

an

amount

not

to

exceed

either

the

current

expense

limitation

of

that

share

class

or

the

expense

limitation

of

the

share

class

in

effect

at

the

time

that

the

share

class

received

the

applicable

waiver

and/or

reimbursement,

provided

that:

(1)

each

Fund,

of

which

the

share

class

is

a

part,

has

more

than

$50

million

in

assets

for

the

fiscal

year,

and  

(2)

the

Manager

or

an

affiliate

continues

to

serve

as

a

Fund’s

investment

adviser

or

administrator.

This

repayment

applies

only

to

the

contractual

expense

limitation

on

net

expenses

and

does

not

apply

to

the

contractual

investment

advisory

fee

waiver

described

above

or

any

voluntary

waivers

that

may

be

in

effect

from

time

to

time.

Effective

July

22,

2028,

the

repayment

arrangement

between

Sustainable

High

Yield

Bond

and

the

Manager

pursuant

to

which

such

Fund

may

be

required

to

repay

amounts

waived

and/or

reimbursed

under the

Fund’s

contractual

caps

on

net

expenses

will

be

terminated.

Effective

October

19,

2028,

the

repayment

arrangement

between

Sustainable

Low

Duration

Bond

and

Sustainable

Total

Return

and

the

Manager

pursuant

to

which

such

Fund

may

be

required

to

repay

amounts

waived

and/or

reimbursed

under

each

Fund's

contractual

caps

on

net

expenses

will

be

terminated.

As

of September

30,

2022,

the

fund

level

and

class

specific

waivers

and/or

reimbursements

subject

to

possible

future

recoupment

under

the

expense

limitation

agreement

are

as

follows:  

Interfund

Lending:

In

accordance

with

an

exemptive

order

(the

“Order”)

from

the

U.S.

Securities

and

Exchange

Commission

(“SEC”),

each

Fund

may

participate

in

a

joint

lending

and

borrowing

facility

for

temporary

purposes

(the

“Interfund

Lending

Program”),

subject

to

compliance

with

the

terms

and

conditions

of

the

Order,

and

to

the

extent

permitted

by each

Fund’s

investment

policies

and

restrictions. Each

Fund

is

currently

permitted

to

borrow

and

lend

under

the

Interfund

Lending

Program.

A

lending

BlackRock

fund

may

lend

in

aggregate

up

to

15%

of

its

net

assets

but

may

not

lend

more

than

5%

of

its

net

assets

to

any

one

borrowing

fund

through

the

Interfund

Lending

Program.

A

borrowing

BlackRock

fund

may

not

borrow

through

the

Interfund

Lending

Program

or

from

any

other

source

more

than

33

1/3%

of

its

total

assets

(or

any

Fund

Name/Share

Class

Administration

Fees

Waived

by

the

Manager

-

Class

Specific

Transfer

Agent

Fees

Waived

and/or

Reimbursed

by

the

Manager

-

Class

Specific

Sustainable

High

Yield

Bond

Institutional

....................................................................................

$

13‌

$

233‌

Investor

A

.....................................................................................

13‌

233‌

Class

K

......................................................................................

9,188‌

268‌

$

9,214‌

$

734‌

Sustainable

Low

Duration

Bond

Institutional

....................................................................................

13‌

216‌

Investor

A

.....................................................................................

18‌

203‌

Class

K

......................................................................................

9,164‌

250‌

$

9,195‌

$

669‌

Sustainable

Total

Return

Institutional

....................................................................................

13‌

218‌

Investor

A

.....................................................................................

13‌

174‌

Class

K

......................................................................................

8,764‌

250‌

$

8,790‌

$

642‌

Expiring

September

30,

2023

2024

Sustainable

High

Yield

Bond

Fund

Level

......................................................................................

$

132,18

3‌

$

419,665‌

Institutional

......................................................................................

64‌

246‌

Investor

A

.......................................................................................

64‌

246‌

Class

K

.........................................................................................

1,977‌

9,456‌

Sustainable

Low

Duration

Bond

Fund

Level

......................................................................................

—‌

300,554‌

Institutional

......................................................................................

—‌

229‌

Investor

A

.......................................................................................

—‌

221‌

Class

K

.........................................................................................

—‌

9,414‌

Sustainable

Total

Return

Fund

Level

......................................................................................

—‌

381,248‌

Institutional

......................................................................................

—‌

231‌

Investor

A

.......................................................................................

—‌

187‌

Class

K

.........................................................................................

—‌

9,014‌

Notes

to

Financial

Statements

(continued)

77

Notes

to

Financial

Statements

lower

threshold

provided

for

by

the fund’s

investment

restrictions).

If

a

borrowing

BlackRock

fund’s

total

outstanding

borrowings

exceed

10%

of

its

total

assets,

each

of

its

outstanding

interfund

loans

will

be

subject

to

collateralization

of

at

least

102%

of

the

outstanding

principal

value

of

the

loan.

All

interfund

loans

are

for

temporary

or

emergency

purposes

and

the

interest

rate

to

be

charged

will

be

the

average

of

the

highest

current

overnight

repurchase

agreement

rate

available

to

a

lending

fund

and

the

bank

loan

rate,

as

calculated

according

to

a

formula

established

by

the

Board. 

During

the period

ended

September

30,

2022,

the

Funds

did

not

participate

in

the

Interfund

Lending

Program.

Directors

and

Officers:

Certain

directors

and/or

officers

of

the Corporation

and

the

Trust are directors and/or

officers

of BlackRock

or

its

affiliates.

The

Funds

reimburse

the

Manager

for

a

portion

of

the

compensation

paid

to

the 

Funds’

Chief

Compliance

Officer,

which

is

included

in 

Directors

 and

Officer

in

the

Statements

of

Operations. 

Other

Transactions:

During

the 

period

ended

September

30,

2022

, 

Sustainable

Total

Return

received

a

reimbursement

of $3,180

from

an

affiliate,

which

is

included

in

payment

by

affiliate

in

the

Statements

of

Operations,

related

to

an operating

event.

7.

PURCHASES

AND

SALES 

For

the period ended

September

30,

2022,

purchases

and

sales

of

investments,

including

paydowns,

mortgage

dollar

rolls and

excluding

short-term

securities,

were

as

follows:

For

the period ended

September

30,

2022,

purchases

and

sales

related

to

mortgage

dollar

rolls

were

as

follows:

8.

INCOME

TAX

INFORMATION 

It

is

each

Fund’s

policy

to

comply

with

the

requirements

of

the

Internal

Revenue

Code

of

1986,

as

amended,

applicable

to

regulated

investment

companies,

and

to

distribute

substantially

all

of

its

taxable

income

to

its

shareholders.

Therefore,

no

U.S.

federal

income

tax

provision

is

required. 

Each Fund

files

U.S.

federal

and

various

state

and

local

tax

returns.

No

income

tax

returns

are

currently

under

examination.

The

statute

of

limitations

on

each

Fund’s

U.S.

federal

tax

returns

generally

remains

open

for

a

period

of

three

years

after

they

are

filed.

The

statutes

of

limitations

on

each

Fund’s

state

and

local

tax

returns

may

remain

open

for

an

additional

year

depending

upon

the

jurisdiction. 

Management

has

analyzed

tax

laws

and

regulations

and

their

application

to

the Funds

as

of

September

30,

2022,

inclusive

of

the

open

tax

return

years,

and

does

not

believe

that

there

are

any

uncertain

tax

positions

that

require

recognition

of

a

tax

liability

in

the

Funds’

financial

statements.

U.S.

GAAP

requires

that

certain

components

of

net

assets

be

adjusted

to

reflect

permanent

differences

between

financial

and

tax

reporting.

These

reclassifications

have

no

effect

on

net

assets

or NAVs

per

share.

As

of

period

end,

permanent

differences

attributable

to

non-deductible

expenses

were reclassified

to

the

following

accounts:

The

tax

character

of

distributions

paid

was

as

follows: 

U.S.

Government

Securities

Other

Securities

Fund

Name

Purchases

Sales

Purchases

Sales

Sustainable

High

Yield

Bond

..............................................

$

—‌

$

—‌

$

21,274,988‌

$

21,489,552‌

Sustainable

Low

Duration

Bond

............................................

71,201,947‌

57,749,793‌

57,199,250‌

21,586,273‌

Sustainable

Total

Return

.................................................

17,009,088‌

12,397,215‌

323,797,019‌

278,079,542‌

Fund

Name

Purchases

Sales

Sustainable

Low

Duration

Bond

............................................................................

$

4,670,912‌

$

4,679,395‌

Sustainable

Total

Return

.................................................................................

117,500,401‌

117,610,666‌

Fund

Name

Paid-In

Capital

Accumulated

Earnings

(Loss)

Sustainable

High

Yield

Bond

...................................................................

$

(76,247‌)

$

76,247‌

Sustainable

Low

Duration

Bond

.................................................................

(74,922‌)

74,922‌

Sustainable

Total

Return

......................................................................

(66,508‌)

66,508‌

—‌

Fund

Name

Period

Ended

09/30/22

Period

Ended

09/30/21

Sustainable

High

Yield

Bond

Ordinary

income

...........................................................................................

$

2,047,989‌

$

312,396‌

Sustainable

Low

Duration

Bond

Ordinary

income

...........................................................................................

$

667,733‌

$

—‌

Sustainable

Total

Return

Ordinary

income

...........................................................................................

$

860,907‌

$

—‌

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

78

As

of

September

30,

2022,

the

tax

components

of

accumulated earnings

(loss) were

as

follows:  

(a)

Amounts

available

to

offset

future

realized

capital

gains.

(b)

The

difference

between

book-basis

and

tax-basis

net

unrealized

gains

(losses)

was

attributable

primarily

to

the

tax

deferral

of

losses

on

wash

sales

and

amortization

methods

of

premiums

and

discounts

on

fixed

income,

the

realization

for

tax

purposes

of

unrealized

gains

(losses)

on

certain

futures,

option

and

foreign

currency

contracts

and

the

accounting

for

swap

agreements.

As

of

September

30,

2022, gross

unrealized

appreciation

and

depreciation

based

on

cost

of

investments

(including

short

positions

and

derivatives,

if

any)

for

U.S.

federal

income

tax

purposes

were

as

follows: 

9.

BANK

BORROWINGS 

The

Corporation

and

the

Trust,

on

behalf

of

the

Funds,

along

with

certain

other

funds

managed

by

the

Manager

and

its

affiliates

(“Participating

Funds”),

is

a

party

to

a

364-day,

$2.50

billion

credit

agreement

with

a

group

of

lenders.

Under

this

agreement,

the

Funds

may

borrow

to

fund

shareholder

redemptions.

Excluding

commitments

designated

for

certain

individual

funds,

the

Participating

Funds,

including

the

Funds,

can

borrow

up

to

an

aggregate

commitment

amount

of

$1.75

billion

at

any

time

outstanding,

subject

to

asset

coverage

and

other

limitations

as

specified

in

the

agreement.

The

credit

agreement

has

the

following

terms:

a

fee

of

0.10%

per

annum

on

unused

commitment

amounts

and

interest

at

a

rate

equal

to

the

higher

of

(a)

Overnight

Bank

Funding

Rate

(“OBFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.80%

per

annum

or

(b)

the

Fed

Funds

rate

(but,

in

any

event,

not

less

than

0.00%)

in

effect

from

time

to

time

plus

0.80%

per

annum

on

amounts

borrowed

or

(c)

the

sum

of

(x) Daily

Simple

Secured

Overnight

Financing

Rate

(“SOFR”)

(but,

in

any

event,

not

less

than

0.00%)

on

the

date

the

loan

is

made

plus

0.10%

and

(y) 0.80%

per

annum.

The

agreement

expires

in

April

2023

unless

extended

or

renewed.

These

fees

were

allocated

among

such

funds

based

upon

portions

of

the

aggregate

commitment

available

to

them

and

relative

net

assets

of

Participating

Funds.

During

the period ended

September

30,

2022,

the

Funds

did

not

borrow

under

the

credit

agreement.

10.

 PRINCIPAL

RISKS 

In

the

normal

course

of

business, the

Funds

invest

in

securities

or

other

instruments

and

may

enter

into

certain

transactions,

and

such

activities

subject

each

Fund

to

various

risks,

including

among

others,

fluctuations

in

the

market

(market

risk)

or

failure

of

an

issuer

to

meet

all

of

its

obligations.

The

value

of

securities

or

other

instruments

may

also

be

affected

by

various

factors,

including,

without

limitation:

(i)

the

general

economy;

(ii)

the

overall

market

as

well

as

local,

regional

or

global

political

and/or

social

instability;

(iii)

regulation,

taxation

or

international

tax

treaties

between

various

countries;

or

(iv)

currency,

interest

rate

and

price

fluctuations.

Local,

regional

or

global

events

such

as

war,

acts

of

terrorism,

the

spread

of

infectious

illness

or

other

public

health

issues,

recessions,

or

other

events

could

have

a

significant

impact

on

the

Funds

and their

investments.

Each

Fund’s

prospectus

provides

details

of

the

risks

to

which

each

Fund

is

subject. 

Market

Risk

:

Each

Fund

may

be

exposed

to

prepayment

risk,

which

is

the

risk

that

borrowers

may

exercise

their

option

to

prepay

principal

earlier

than

scheduled

during

periods

of

declining

interest

rates,

which

would

force

each

Fund

to

reinvest

in

lower

yielding

securities. Each

Fund

may

also

be

exposed

to

reinvestment

risk,

which

is

the

risk

that

income

from

each

Fund’s

portfolio

will

decline

if

each

Fund

invests

the

proceeds

from

matured,

traded

or

called

fixed-income

securities

at

market

interest

rates

that

are

below

each

Fund

portfolio’s

current

earnings

rate.

Municipal

securities

are

subject

to

the

risk

that

litigation,

legislation

or

other

political

events,

local

business

or

economic

conditions,

credit

rating

downgrades,

or

the

bankruptcy

of

the

issuer

could

have

a

significant

effect

on

an

issuer’s

ability

to

make

payments

of

principal

and/or

interest

or

otherwise

affect

the

value

of

such

securities.

Municipal

securities

can

be

significantly

affected

by

political

or

economic

changes,

including

changes

made

in

the

law

after

issuance

of

the

securities,

as

well

as

uncertainties

in

the

municipal

market

related

to,

taxation,

legislative

changes

or

the

rights

of

municipal

security

holders,

including

in

connection

with

an

issuer

insolvency.

Municipal

securities

backed

by

current

or

anticipated

revenues

from

a

specific

project

or

specific

assets

can

be

negatively

affected

by

the

discontinuance

of

the

tax

benefits

supporting

the

project

or

assets

or

the

inability

to

collect

revenues

for

the

project

or

from

the

assets.

Municipal

securities

may

be

less

liquid

than

taxable

bonds,

and

there

may

be

less

publicly

available

information

on

the

financial

condition

of

municipal

security

issuers

than

for

issuers

of

other

securities.

An

outbreak

of

respiratory

disease

caused

by

a

novel

coronavirus

has

developed

into

a

global

pandemic

and

has

resulted

in

closing

borders,

quarantines,

disruptions

to

supply

chains

and

customer

activity,

as

well

as

general

concern

and

uncertainty.

The

impact

of

this

pandemic,

and

other

global

health

crises

that

may

arise

in

the

future,

could

affect

the

economies

of

many

nations,

individual

companies

and

the

market

in

general

in

ways

that

cannot

necessarily

be

foreseen

at

the

present

time.

This

pandemic

may

result

in

substantial

market

volatility

and

may

adversely

impact

the

prices

and

liquidity

of

a

fund’s

investments.

Although

vaccines

have

been

developed

and

approved

for

use

by

various

governments,

the duration

of

this

pandemic

and

its

effects

cannot

be

determined

with

certainty.

Valuation

Risk:

The

market

values

of

equities,

such

as

common

stocks

and

preferred

securities

or

equity

related

investments,

such

as

futures

and

options,

may

decline

due

to

general

market

conditions

which

are

not

specifically

related

to

a

particular

company.

They

may

also

decline

due

to

factors

which

affect

a

particular

industry

or

industries. A

Fund

Name

Undistributed

Ordinary

Income

Non-Expiring

Capital

Loss

Carryforwards

(a)

Net

Unrealized

Gains

(Losses)

(b)

Total

Sustainable

High

Yield

Bond

....................................................

$

36,154‌

$

(1,711,104‌)

$

(7,320,689‌)

$

(8,995,639‌)

Sustainable

Low

Duration

Bond

..................................................

791,577‌

(375,65

1‌

)

(4,085,025‌)

(3,669,099‌)

Sustainable

Total

Return

.......................................................

712,192‌

(3,162,757‌)

(6,337,803‌)

(8,788,368‌)

Fund

Name

Tax

Cost

Gross

Unrealized

Appreciation

Gross

Unrealized

Depreciation

Net

Unrealized

Appreciation

(Depreciation)

Sustainable

High

Yield

Bond

..........................................

$

47,962,057‌

$

1,405‌

$

(7,322,094‌)

$

(7,320,689‌)

Sustainable

Low

Duration

Bond

........................................

52,757,990‌

451,685‌

(4,535,106‌)

(4,083,421‌)

Sustainable

Total

Return

............................................

55,498,278‌

562,861‌

(6,898,516‌)

(6,335,655‌)

Notes

to

Financial

Statements

(continued)

79

Notes

to

Financial

Statements

Fund

may

invest

in

illiquid

investments.

An

illiquid

investment

is

any

investment

that a

Fund

reasonably

expects

cannot

be

sold

or

disposed

of

in

current

market

conditions

in

seven

calendar

days

or

less

without

the

sale

or

disposition

significantly

changing

the

market

value

of

the

investment. A

Fund

may

experience

difficulty

in

selling

illiquid

investments

in

a

timely

manner

at

the

price

that it

believes

the

investments

are

worth.

Prices

may

fluctuate

widely

over

short

or

extended

periods

in

response

to

company,

market

or

economic

news.

Markets

also

tend

to

move

in

cycles,

with

periods

of

rising

and

falling

prices.

This

volatility

may

cause

each

Fund’s

NAV

to

experience

significant

increases

or

decreases

over

short

periods

of

time.

If

there

is

a

general

decline

in

the

securities

and

other

markets,

the

NAV

of a

Fund

may

lose

value,

regardless

of

the

individual

results

of

the

securities

and

other

instruments

in

which a

Fund

invests. 

The

price a

Fund

could

receive

upon

the

sale

of

any

particular

portfolio

investment

may

differ

from a

Fund’s

valuation

of

the

investment,

particularly

for

securities

that

trade

in

thin

or

volatile

markets

or

that

are

valued

using

a

fair

valuation

technique

or

a

price

provided

by

an

independent

pricing

service.

Changes

to

significant

unobservable

inputs

and

assumptions

(i.e.,

publicly

traded

company

multiples,

growth

rate,

time

to

exit)

due

to

the

lack

of

observable

inputs

may

significantly

impact

the

resulting

fair

value

and

therefore a

Fund’s

results

of

operations.

As

a

result,

the

price

received

upon

the

sale

of

an

investment

may

be

less

than

the

value

ascribed

by a

Fund,

and a

Fund

could

realize

a

greater

than

expected

loss

or

lesser

than

expected

gain

upon

the

sale

of

the

investment.

A

Fund’s

ability

to

value

its

investments

may

also

be

impacted

by

technological

issues

and/or

errors

by

pricing

services

or

other

third-party

service

providers. 

Counterparty

Credit

Risk:

The

Funds

may

be

exposed

to

counterparty

credit

risk,

or

the

risk

that

an

entity

may

fail

to

or

be

unable

to

perform

on

its

commitments

related

to

unsettled

or

open

transactions,

including

making

timely

interest

and/or

principal

payments

or

otherwise

honoring

its

obligations.

The

Funds

manage

counterparty

credit

risk

by

entering

into

transactions

only

with

counterparties

that

the

Manager

believes

have

the

financial

resources

to

honor

their

obligations

and

by

monitoring

the

financial

stability

of

those

counterparties.

Financial

assets,

which

potentially

expose

the

Funds

to

market,

issuer

and

counterparty

credit

risks,

consist

principally

of

financial

instruments

and

receivables

due

from

counterparties.

The

extent

of

the

Funds’

exposure

to

market,

issuer

and

counterparty

credit

risks

with

respect

to

these

financial

assets

is

approximately

their

value

recorded

in

the

Statements

of

Assets

and

Liabilities,

less

any

collateral

held

by

the

Funds. 

A

derivative

contract

may

suffer

a

mark-to-market

loss

if

the

value

of

the

contract

decreases

due

to

an

unfavorable

change

in

the

market

rates

or

values

of

the

underlying

instrument.

Losses

can

also

occur

if

the

counterparty

does

not

perform

under

the

contract.

For

OTC

options

purchased,

each

Fund

bears

the

risk

of

loss

in

the

amount

of

the

premiums

paid

plus

the

positive

change

in

market

values

net

of

any

collateral

held

by

the

Funds

should

the

counterparty

fail

to

perform

under

the

contracts.

Options

written

by

the

Funds

do

not

typically

give

rise

to

counterparty

credit

risk,

as

options

written

generally

obligate

the

Funds,

and

not

the

counterparty,

to

perform.

The

Funds

may

be

exposed

to

counterparty

credit

risk

with

respect

to

options

written

to

the

extent

each

Fund

deposits

collateral

with

its

counterparty

to

a

written

option. 

With

exchange-traded

options

purchased,

exchange-traded

futures

and

centrally

cleared

swaps,

there

is

less

counterparty

credit

risk

to

the

Funds

since

the

exchange

or

clearinghouse,

as

counterparty

to

such

instruments,

guarantees

against

a

possible

default.

The

clearinghouse

stands

between

the

buyer

and

the

seller

of

the

contract;

therefore,

credit

risk

is

limited

to

failure

of

the

clearinghouse.

While

offset

rights

may

exist

under

applicable

law, a

Fund

does

not

have

a

contractual

right

of

offset

against

a

clearing

broker

or

clearinghouse

in

the

event

of

a

default

(including

the

bankruptcy

or

insolvency).

Additionally,

credit

risk

exists

in exchange-traded

futures

and

centrally

cleared

swaps

with

respect

to

initial

and

variation

margin

that

is

held

in

a

clearing

broker’s

customer

accounts.

While

clearing

brokers

are

required

to

segregate

customer

margin

from

their

own

assets,

in

the

event

that

a

clearing

broker

becomes

insolvent

or

goes

into

bankruptcy

and

at

that

time

there

is

a

shortfall

in

the

aggregate

amount

of

margin

held

by

the

clearing

broker

for

all

its

clients,

typically

the

shortfall

would

be

allocated

on

a

pro

rata

basis

across

all

the

clearing

broker’s

customers,

potentially

resulting

in

losses

to

the

Funds. 

Concentration

Risk:

 A

diversified

portfolio,

where

this

is appropriate

and

consistent

with

a

fund’s

objectives,

minimizes

the

risk

that

a

price

change

of

a

particular

investment

will

have

a

material

impact

on

the

NAV

of

a

fund.

The

investment

concentrations

within

each Fund’s

portfolio

are

disclosed

in

its Schedule

of

Investments.

Certain

Funds

invest

a

significant

portion

of their

assets

in

high

yield

securities.

High

yield

securities

that

are

rated

below

investment-grade

(commonly

referred

to

as

“junk

bonds”)

or

are

unrated

may

be

deemed

speculative,

involve

greater

levels

of

risk

than

higher-rated

securities

of

similar

maturity

and

are

more

likely

to

default.

High

yield

securities

may

be

issued

by

less

creditworthy

issuers,

and

issuers

of

high

yield

securities

may

be

unable

to

meet

their

interest

or

principal

payment

obligations.

High

yield

securities

are

subject

to

extreme

price

fluctuations,

may

be

less

liquid

than

higher

rated

fixed-income

securities,

even

under

normal

economic

conditions,

and

frequently

have

redemption

features.

Certain Funds

invest

a

significant

portion

of

their

assets

in fixed-income securities and/or use

derivatives tied

to

the

fixed-income

markets.

Changes

in

market

interest

rates

or

economic

conditions

may affect

the

value

and/or

liquidity

of

such investments.

Interest

rate

risk

is

the

risk

that

prices

of

bonds

and

other

fixed-income

securities

will

decrease

as

interest

rates

rise

and

increase

as

interest

rates

fall.

The

Funds

may

be

subject

to

a

greater

risk

of

rising

interest

rates

due

to

the

recent

period

of

historically

low

interest rates. The

Federal

Reserve

has

recently

begun

to

raise

the

federal

funds

rate

as

part

of

its

efforts

to

address

inflation.

There

is

a

risk

that

interest

rates

will

continue

to

rise,

which

will

likely

drive

down

the

prices

of

bonds

and

other

fixed-income

securities,

and

could

negatively

impact certain

Funds’

performance.

Certain

Funds

invest

a

significant

portion

of their

assets

in

securities

backed

by

commercial

or

residential

mortgage

loans

or

in

issuers

that

hold

mortgage

and

other

asset-

backed

securities.

When

a

Fund

concentrates

its

investments

in

this

manner,

it

assumes

a

greater

risk

of

prepayment

or

payment

extension

by

securities

issuers.

Changes

in

economic

conditions,

including

delinquencies

and/or

defaults

on

assets

underlying

these

securities,

can

affect

the

value,

income

and/or

liquidity

of

such

positions.

Investment

percentages

in

these

securities

are

presented

in

the

Schedules

of

Investments.

Significant

Shareholder

Redemption

Risk:

Certain

shareholders

may

own

or

manage

a

substantial

amount

of

fund

shares

and/or

hold

their

fund

investments

for

a

limited

period

of

time.

Large

redemptions

of

fund

shares

by

these

shareholders

may

force

a

fund

to

sell

portfolio

securities,

which

may

negatively

impact

the

fund’s

NAV,

increase

the

fund’s

brokerage

costs,

and/or

accelerate

the

realization

of

taxable

income/gains

and

cause

the

fund

to

make

additional

taxable

distributions

to

shareholders.

LIBOR

Transition

Risk:

The

United

Kingdom’s

Financial

Conduct

Authority

announced

a phase

out of

the

LIBOR.

Although

many

LIBOR

rates

ceased to

be

published

or

no

longer

are representative

of

the

underlying

market

they

seek

to

measure

after

December

31,

2021,

a

selection

of

widely

used

USD

LIBOR

rates

will

continue

to

be

published

through

June

2023

in

order

to

assist

with

the

transition.

The

Funds

may

be

exposed

to

financial

instruments

tied

to

LIBOR

to

determine

payment

obligations,

financing

terms,

Notes

to

Financial

Statements

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

80

hedging

strategies

or

investment

value.

The

transition

process

away

from

LIBOR

might

lead

to

increased

volatility

and

illiquidity

in

markets

for,

and

reduce

the

effectiveness

of

new

hedges

placed

against

instruments

whose

terms

currently

include

LIBOR.

The

ultimate

effect

of

the

LIBOR

transition

process

on

the

Funds

is

uncertain. 

11.

CAPITAL

SHARE

TRANSACTIONS 

Transactions

in

capital

shares

for

each

class

were

as

follows:

(a)

Commencement

of

operations.

d

Year

Ended

09/30/22

Period

from

07/22/21

(a)

to

09/30/21

Fund

Name/Share

Class

Shares

Amount

Shares

Amount

Sustainable

High

Yield

Bond

Institutional

Shares

sold

.............................................

184‌

$

1,599‌

10,000‌

$

100,000‌

Shares

issued

in

reinvestment

of

distributions

........................

3‌

26‌

—‌

—‌

187‌

$

1,625‌

10,000‌

$

100,000‌

Investor

A

Shares

sold

.............................................

283‌

$

2,587‌

10,000‌

$

100,000‌

Shares

issued

in

reinvestment

of

distributions

........................

6‌

51‌

—‌

—‌

289‌

$

2,638‌

10,000‌

$

100,000‌

Class

K

Shares

sold

.............................................

—‌

$

—‌

4,980,000‌

$

49,800,000‌

—‌

$

—‌

4,980,000‌

$

49,800,000‌

476‌

$

4,263‌

5,000,000‌

$

50,000,000‌

d

Period

from

10/18/21

(a)

to

09/30/22

Fund

Name/Share

Class

Shares

Amount

Sustainable

Low

Duration

Bond

Institutional

Shares

sold

.............................................................................

10,001‌

$

100,010‌

Shares

redeemed

.........................................................................

(1‌)

(10‌)

10,000‌

$

100,000‌

Investor

A

Shares

sold

.............................................................................

21,953‌

$

216,401‌

Shares

issued

in

reinvestment

of

distributions

........................................................

62‌

594‌

Shares

redeemed

.........................................................................

(10,111‌)

(96,014‌)

11,904‌

$

120,981‌

Class

K

Shares

sold

.............................................................................

4,980,008‌

$

49,800,077‌

Shares

issued

in

reinvestment

of

distributions

........................................................

—‌

—‌

Shares

redeemed

.........................................................................

(8‌)

(116‌)

4,980,000‌

$

49,799,961‌

5,001,904‌

$

50,020,942‌

Sustainable

Total

Return

Institutional

Shares

sold

.............................................................................

10,001‌

$

100,010‌

Shares

redeemed

.........................................................................

(1‌)

(10‌)

10,000‌

$

100,000‌

Investor

A

Shares

sold

.............................................................................

11,178‌

$

111,490‌

Shares

issued

in

reinvestment

of

distributions

........................................................

15‌

133‌

Shares

redeemed

.........................................................................

(1‌)

(10‌)

11,192‌

$

111,613‌

Class

K

Shares

sold

.............................................................................

4,980,001‌

$

49,800,011‌

Shares

redeemed

.........................................................................

(1‌)

(10‌)

4,980,000‌

$

49,800,001‌

5,001,192‌

$

50,011,614‌

Notes

to

Financial

Statements

(continued)

81

Notes

to

Financial

Statements

As

of

September

30,

2022,

shares

owned

by

BlackRock

Financial

Management,

Inc.,

an

affiliate

of

the

Funds,

were

as

follows:

12.

SUBSEQUENT

EVENTS 

Management

has

evaluated

the

impact

of

all

subsequent

events

on

the

Funds

through

the

date

the

financial

statements

were

issued

and

has

determined

that

there

were

no

subsequent

events

requiring

adjustment

or

additional

disclosure

in

the

financial

statements.

Institutional

Investor

A

Class

K

Sustainable

High

Yield

Bond

..........................................................................

$

10,000‌

$

10,000‌

$

4,980,000‌

Sustainable

Low

Duration

Bond

........................................................................

10,000‌

10,000‌

4,980,000‌

Sustainable

Total

Return

.............................................................................

10,000‌

10,000‌

4,980,000‌

Report

of

Independent

Registered

Public

Accounting

Firm

2022

BlackRock

Annual

Report

to

Shareholders

82

To

the

Shareholders

of

BlackRock

Sustainable

High

Yield

Bond

Fund,

BlackRock

Sustainable

Low

Duration

Bond

Fund

and

BlackRock

Sustainable

Total

Return

Fund and

the

Board

of

Trustees/Directors of

BlackRock

Funds

V

and

BlackRock

Bond

Fund,

Inc.:

Opinion

on

the

Financial

Statements

and

Financial

Highlights

We

have

audited

the

accompanying

statement

of

assets

and

liabilities

of

BlackRock

Sustainable

High

Yield

Bond

Fund

of

BlackRock

Funds

V,

including

the

schedule

of

investments,

as

of

September

30,

2022,

the

related

statement

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

and

the

financial

highlights

for

the

year

then

ended

and

for

the

period

from

July

22,

2021

(commencement

of

operations)

through

September

30,

2021,

and

the

related

notes.

We

have

also

audited

the

accompanying

statements

of

assets

and

liabilities

of

BlackRock

Sustainable

Low

Duration

Bond

Fund

of

BlackRock

Funds

V

and

Blackrock

Sustainable

Total

Return

Fund

of

BlackRock

Bond

Fund,

Inc.

(collectively

with

BlackRock

Sustainable

High

Yield

Bond

Fund,

the

“Funds”),

including

the

schedules

of

investments,

as

of

September

30,

2022,

the

related

statements

of

operations,

changes

in

net

assets,

and

the

financial

highlights

for

the

period

from

October

18,

2021

(commencement

of

operations)

through

September

30,

2022,

and

the

related

notes.

In

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

BlackRock

Sustainable

High

Yield

Bond

Fund

as

of

September

30,

2022,

and

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets,

and

the

financial

highlights

for

the

year

then

ended

and

for

the

period

from

July

22,

2021

(commencement

of

operations)

through

September

30,

2021,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Also,

in

our

opinion,

the

financial

statements

and

financial

highlights

present

fairly,

in

all

material

respects,

the

financial

position

of

the

BlackRock

Sustainable

Low

Duration

Bond

Fund

and

Blackrock

Sustainable

Total

Return

Fund

as

of

September

30,

2022,

and

the

results

of

their

operations,

the

changes

in

their

net

assets,

and

the

financial

highlights

for

the

period

from

October

18,

2021

(commencement

of

operations)

through

September

30,

2022,

in

conformity

with

accounting

principles

generally

accepted

in

the

United

States

of

America.

Basis

for

Opinion

These

financial

statements

and

financial

highlights

are

the

responsibility

of

the

Funds’

management.

Our

responsibility

is

to

express

an

opinion

on

the

Funds’

financial

statements

and

financial

highlights

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(PCAOB)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB. 

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

and

financial

highlights

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Funds

are

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

their

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Funds’

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements

and

financial

highlights,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements

and

financial

highlights.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements

and

financial

highlights.

Our

procedures

included

confirmation

of

securities

owned

as

of

September

30,

2022,

by

correspondence

with custodians

or

counterparties; when

replies

were

not

received,

we

performed

other

auditing

procedures.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

Deloitte

&

Touche

LLP

Boston,

Massachusetts

November

22,

2022

We

have

served

as

the

auditor

of

one

or

more

BlackRock

investment

companies

since

1992.

Important

Tax

Information

(unaudited)

83

Important

Tax

Information

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable

by

law,

of

distributions

from

direct

federal

obligation

interest

for

the

fiscal

period

ended

September

30,

2022:

The

law

varies

in

each

state

as

to

whether

and

what

percent

of

ordinary

income

dividends

attributable

to

federal

obligations

is

exempt

from

state

income

tax.

Shareholders

are

advised

to

check

with

their

tax

advisers

to

determine

if

any

portion

of

the

dividends

received

is

exempt

from

state

income

tax.

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable by

law,

as

interest

income

eligible

to

be

treated

as

a

Section

163(j)

interest

dividend

for

the

fiscal

period

ended

September

30,

2022:

The

Funds

hereby

designate

the

following

amounts,

or

maximum

amounts

allowable

by

law,

as

interest-related

dividends

eligible

for

exemption

from

U.S.

withholding

tax

for

nonresident

aliens

and

foreign

corporations

for

the

fiscal

period

ended

September

30,

2022:

Fund

Name

Federal

Obligation

Interest

Sustainable

Low

Duration

Bond

.........................................................................................

$

137,340

Sustainable

Total

Return

..............................................................................................

78,228

Fund

Name

Interest

Dividends

Sustainable

High

Yield

Bond

...........................................................................................

$

2,060,127

Sustainable

Low

Duration

Bond

.........................................................................................

744,724

Sustainable

Total

Return

..............................................................................................

891,036

Fund

Name

Interest-Related

Dividends

Sustainable

High

Yield

Bond

...........................................................................................

$

1,686,053

Sustainable

Low

Duration

Bond

.........................................................................................

611,262

Sustainable

Total

Return

..............................................................................................

744,035

Director

and

Officer

Information

2022

BlackRock

Annual

Report

to

Shareholders

84

Independent

Directors

(a)

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

(c)

Principal

Occupation(s)

During

Past

Five

Years

Number

of

BlackRock-Advised

Registered

Investment

Companies

(“RICs”)

Consisting

of

Investment

Portfolios

(“Portfolios”)

Overseen

Public

Company

and

Other

Investment

Company

Directorships

Held

During

Past

Five

Years

R.

Glenn

Hubbard

1958

Chair

of

the

Board

(Since

2022)

Director

(Since

2019)

Dean,

Columbia

Business

School

from

2004

to

2019;

Faculty

member,

Columbia

Business

School

since

1988.

69

RICs

consisting

of

100

Portfolios

ADP

(data

and

information

services)

2004-2020;

Metropolitan

Life

Insurance

Company

(insurance);

KKR

Financial

Corporation

(finance)

from

2004

until

2014

W.

Carl

Kester

(d)

1951

Vice

Chair

of

the

Board

(Since

2022)

Director

(Since

2019)

George

Fisher

Baker

Jr.

Professor

of

Business

Administration,

Harvard

Business

School

since

2008;

Deputy

Dean

for

Academic

Affairs

from

2006

to

2010;

Chairman

of

the

Finance

Unit,

from

2005

to

2006;

Senior

Associate

Dean

and

Chairman

of

the

MBA

Program

from

1999

to

2005;

Member

of

the

faculty

of

Harvard

Business

School

since

1981.

71

RICs

consisting

of

102

Portfolios

None

Cynthia

L.

Egan

1955

Director

(Since

2019)

Advisor,

U.S.

Department

of

the

Treasury

from

2014

to

2015;

President,

Retirement

Plan

Services,

for

T.

Rowe

Price

Group,

Inc.

from

2007

to

2012;

executive

positions

within

Fidelity

Investments

from

1989

to

2007.

69

RICs

consisting

of

100

Portfolios

Unum

(insurance);

The

Hanover

Insurance

Group

(Board

Chair)

(insurance);

Huntsman

Corporation

(Lead

Independent

Director

and

non

Executive

Vice

Chair

of

the

Board)

(chemical

products);

Envestnet

(investment

platform)

from

2013

until

2016

Frank

J.

Fabozzi

(d)

1948

Director

(Since

2019)

Editor

of

The

Journal

of

Portfolio

Management

since

1986;

Professor

of

Finance,

EDHEC

Business

School

(France)

from

2011

to

2022;

Professor

of

Practice,

Johns

Hopkins

University

since

2021;

Visiting

Professor,

Princeton

University

for

the

2013

to

2014

academic

year

and

Spring

2017

semester;

Professor

in

the

Practice

of

Finance,

Yale

University

School

of

Management

from

1994

to

2011

and

currently

a

Teaching

Fellow

in

Yale's

Executive

Programs;

Board

Member,

BlackRock

Equity-Liquidity

Funds

from

2014

to

2016;

affiliated

professor

Karlsruhe

Institute

of

Technology

from

2008

to

2011;

Visiting

Professor,

Rutgers

University

for

the

Spring

2019

semester;

Visiting

Professor,

New

York

University

for

the

2019

academic

year;

Adjunct

Professor

of

Finance,

Carnegie

Mellon

University

in

fall

2020

semester.

71

RICs

consisting

of

102

Portfolios

None

Lorenzo

A.

Flores

1964

Director

(Since

2021)

Vice

Chairman,

Kioxia,

Inc.

since

2019;

Chief

Financial

Officer,

Xilinx,

Inc.

from

2016

to

2019;

Corporate

Controller,

Xilinx,

Inc.

from

2008

to

2016.

69

RICs

consisting

of

100

Portfolios

None

Stayce

D.

Harris

1959

Director

(Since

2021)

Lieutenant

General,

Inspector

General,

Office

of

the

Secretary

of

the

United

States

Air

Force

from

2017

to

2019;

Lieutenant

General,

Assistant

Vice

Chief

of

Staff

and

Director,

Air

Staff,

United

States

Air

Force

from

2016

to

2017;

Major

General,

Commander,

22nd

Air

Force,

AFRC,

Dobbins

Air

Reserve

Base,

Georgia

from

2014

to

2016;

Pilot,

United

Airlines

from

1990

to

2020.

69

RICs

consisting

of

100

Portfolios

The

Boeing

Company

J.

Phillip

Holloman

1955

Director

(Since

2021)

President

and

Chief

Operating

Officer,

Cintas

Corporation

from

2008

to

2018.

69

RICs

consisting

of

100

Portfolios

PulteGroup,

Inc.

(home

construction);

Rockwell

Automation

Inc.

(industrial

automation)

Catherine

A.

Lynch

(d)

1961

Director

(Since

2019)

Chief

Executive

Officer,

Chief

Investment

Officer

and

various

other

positions,

National

Railroad

Retirement

Investment

Trust

from

2003

to

2016;

Associate

Vice

President

for

Treasury

Management,

The

George

Washington

University

from

1999

to

2003;

Assistant

Treasurer,

Episcopal

Church

of

America

from

1995

to

1999.

71

RICs

consisting

of

102

Portfolios

PennyMac

Mortgage

Investment

Trust

Director

and

Officer

Information

(continued)

85

Director

and

Officer

Information

Interested

Directors

(a)(e)

(a)

The

address

of

each

Director

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Each

Independent

Director

holds

office

until

his

or

her

successor

is

duly

elected

and

qualifies

or

until

his

or

her

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Corporation’s/

Trust’s

by-laws

or

charter

or

statute,

or

until

December

31

of

the

year

in

which

he

or

she

turns

75.

Directors

who

are

“interested

persons,”

as

defined

in

the

Investment

Company

Act

serve

until

their

successor

is

duly

elected

and

qualifies

or

until

their

earlier

death,

resignation,

retirement

or

removal

as

provided

by

the

Corporation’s/Trust’s

by-laws

or

statute,

or

until

December

31

of

the

year

in

which

they

turn

72.

The

Board

may

determine

to

extend

the

terms

of

Independent

Directors

on

a

case-by-case

basis,

as

appropriate.

(c)

Following

the

combination

of

Merrill

Lynch

Investment

Managers,

L.P.

(“MLIM”)

and

BlackRock,

Inc.

in

September

2006,

the

various

legacy

MLIM

and

legacy

BlackRock

fund

boards

were

realigned

and

consolidated

into

three

new

fund

boards

in

2007.

Certain

Independent

Directors

first

became

members

of

the

boards

of

other

legacy

MLIM

or

legacy

BlackRock

funds

as

follows:

Frank

J.

Fabozzi,

1988;

R.

Glenn

Hubbard,

2004;

and

W.

Carl

Kester,

1995.

Certain

other

Independent

Directors

became

members

of

the

boards

of

the

closed-end

funds

in

the

Fixed-Income

Complex

as

follows:

Cynthia

L.

Egan,

2016;

and

Catherine

A.

Lynch,

2016.

(d)

Dr.

Fabozzi,

Dr.

Kester,

Ms.

Lynch

and

Mr.

Perlowski

are

also

Directors

of

the

BlackRock

Credit

Strategies

Fund

and

BlackRock

Private

Investments

Fund.

(e)

Mr.

Fairbairn

and

Mr.

Perlowski

are

both

“interested

persons,”

as

defined

in

the

1940

Act,

of

the

Corporation/Trust

based

on

their

positions

with

BlackRock,

Inc.

and

its

affiliates.

Mr.

Fairbairn

and

Mr.

Perlowski

are

also

board

members

of

the

BlackRock

Multi-Asset

Complex.

Robert

Fairbairn

1965

Director

(Since

2015)

Vice

Chairman

of

BlackRock,

Inc.

since

2019;

Member

of

BlackRock's

Global

Executive

and

Global

Operating

Committees;

Co-Chair

of

BlackRock's

Human

Capital

Committee;

Senior

Managing

Director

of

BlackRock,

Inc.

from

2010

to

2019;

oversaw

BlackRock's

Strategic

Partner

Program

and

Strategic

Product

Management

Group

from

2012

to

2019;

Member

of

the

Board

of

Managers

of

BlackRock

Investments,

LLC

from

2011

to

2018;

Global

Head

of

BlackRock's

Retail

and

iShares

®

businesses

from

2012

to

2016.

97

RICs

consisting

of

264

Portfolios

None

John

M.

Perlowski

(d)

1964

Director

(Since

2015);

President

and

Chief

Executive

Officer

(Since

2010)

Managing

Director

of

BlackRock,

Inc.

since

2009;

Head

of

BlackRock

Global

Accounting

and

Product

Services

since

2009;

Advisory

Director

of

Family

Resource

Network

(charitable

foundation)

since

2009.

99

RICs

consisting

of

266

Portfolios

None

Director

and

Officer

Information

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

86

Officers

Who

Are

Not

Directors

(a)

(a)

The

address

of

each

Officer

is

c/o

BlackRock,

Inc.,

55

East

52nd

Street,

New

York,

New

York

10055.

(b)

Officers

of

the

Corporation/Trust

serve

at

the

pleasure

of

the

Board.

Further

information

about

the

Corporation’s/Trust’s

Directors

and

Officers

is

available

in

the

Funds’

Statement

of

Additional

Information,

which

can

be

obtained

without

charge

by

calling

(800)

441-7762.

Name

Year

of

Birth

(b)

Position(s)

Held

(Length

of

Service)

Principal

Occupation(s)

During

Past

Five

Years

Jennifer

McGovern

1977

Vice

President

(Since

2014)

Managing

Director

of

BlackRock,

Inc.

since

2016;

Director

of

BlackRock,

Inc.

from

2011

to

2015;

Head

of

Americas

Product

Development

and

Governance

for

BlackRock’s

Global

Product

Group

since

2019;

Head

of

Product

Structure

and

Oversight

for

BlackRock's

U.S.

Wealth

Advisory

Group

from

2013

to

2019.

Trent

Walker

1974

Chief

Financial

Officer

(Since

2021)

Managing

Director

of

BlackRock,

Inc.

since

September

2019;

Executive

Vice

President

of

PIMCO

from

2016

to

2019;

Senior

Vice

President

of

PIMCO

from

2008

to

2015;

Treasurer

from

2013

to

2019

and

Assistant

Treasurer

from

2007

to

2017

of

PIMCO

Funds,

PIMCO

Variable

Insurance

Trust,

PIMCO

ETF

Trust,

PIMCO

Equity

Series,

PIMCO

Equity

Series

VIT,

PIMCO

Managed

Accounts

Trust,

2

PIMCO-sponsored

interval

funds

and

21

PIMCO-sponsored

closed-end

funds.

Jay

M.

Fife

1970

Treasurer

(Since

2007)

Managing

Director

of

BlackRock,

Inc.

since

2007.

Charles

Park

1967

Chief

Compliance

Officer

(Since

2014)

Anti-Money

Laundering

Compliance

Officer

for

certain

BlackRock-advised

Funds

from

2014

to

2015;

Chief

Compliance

Officer

of

BlackRock

Advisors,

LLC

and

the

BlackRock-advised

Funds

in

the

BlackRock

Multi-Asset

Complex

and

the

BlackRock

Fixed-Income

Complex

since

2014;

Principal

of

and

Chief

Compliance

Officer

for

iShares

®

Delaware

Trust

Sponsor

LLC

since

2012

and

BlackRock

Fund

Advisors

(“BFA”)

since

2006;

Chief

Compliance

Officer

for

the

BFA-advised

iShares

®

exchange

traded

funds

since

2006;

Chief

Compliance

Officer

for

BlackRock

Asset

Management

International

Inc.

since

2012.

Lisa

Belle

1968

Anti-Money

Laundering

Compliance

Officer

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2019;

Global

Financial

Crime

Head

for

Asset

and

Wealth

Management

of

JP

Morgan

from

2013

to

2019;

Managing

Director

of

RBS

Securities

from

2012

to

2013;

Head

of

Financial

Crimes

for

Barclays

Wealth

Americas

from

2010

to

2012.

Janey

Ahn

1975

Secretary

(Since

2019)

Managing

Director

of

BlackRock,

Inc.

since

2018;

Director

of

BlackRock,

Inc.

from

2009

to

2017.

Effective

May

31,

2022,

Karen

P.

Robards

retired

as

a

Director

of

the

Corporation/Trust.

Effective

December

31,

2021,

Richard

E.

Cavanagh

and

Michael

J.

Castellano

retired

as

Directors

of

the

Corporation/Trust.

Additional

Information

87

Additional

Information

General

Information 

Quarterly

performance,

semi-annual

and

annual

reports,

current

net

asset

value

and

other

information

regarding

the

Funds

may

be

found

on

BlackRock’s

website,

which

can

be

accessed

at

blackrock.com

.

Any

reference

to

BlackRock’s

website

in

this

report

is

intended

to

allow

investors

public

access

to

information

regarding

the

Funds

and

does

not,

and

is

not

intended

to,

incorporate

BlackRock’s

website

in

this

report.

Householding

The

Funds

will

mail

only

one

copy

of

shareholder

documents,

including

prospectuses,

annual

and

semi-annual

reports,

Rule

30e-3

notices

and

proxy

statements,

to

shareholders

with

multiple

accounts

at

the

same

address.

This

practice

is

commonly

called

“householding”

and

is

intended

to

reduce

expenses

and

eliminate

duplicate

mailings

of

shareholder

documents.

Mailings

of

your

shareholder

documents

may

be

householded

indefinitely

unless

you

instruct

us

otherwise.

If

you

do

not

want

the

mailing

of

these

documents

to

be

combined

with

those

for

other

members

of

your

household,

please

call

the

Funds at

(800)

441-7762.

Availability

of

Quarterly

Schedule

of

Investments

The

Funds

file

their

complete

schedules

of

portfolio

holdings

with

the

SEC

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to their

reports

on

Form

N-PORT.

The

Funds’

Forms

N-PORT are

available

on

the

SEC’s

website

at

sec.gov

.

Additionally,

each

Fund

makes

its

portfolio

holdings

for

the

first

and

third

quarters

of

each

fiscal

year

available

at

blackrock.com/fundreports

.

Availability

of

Proxy

Voting

Policies,

Procedures

and

Voting

Records

A

description

of

the

policies

and

procedures

that

the

Funds

use

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

information

about

how

the

Funds

voted

proxies

relating

to

securities

held

in

the

Funds'

portfolios

during

the

most

recent

12-month

period

ended

June

30 is

available

without

charge,

upon

request (1)

by

calling

(800)

441-

7762

;

(2)

on

the

BlackRock

website

at

blackrock.com

;

and

(3)

on

the

SEC’s

website

at

sec.gov

.

BlackRock’s

Mutual

Fund

Family

BlackRock

offers

a

diverse

lineup

of

open-end

mutual

funds

crossing

all

investment

styles

and

managed

by

experts

in

equity,

fixed-income

and

tax-exempt

investing.

Visit

blackrock.com

for

more

information.

Shareholder

Privileges

Account

Information

Call

us

at

(800)

441-7762

from

8:00

AM

to

6:00

PM

ET

on

any

business

day

to

get

information

about

your

account

balances,

recent

transactions

and

share

prices.

You

can

also

visit

blackrock.com

for

more

information.

Automatic

Investment

Plans

Investor

class

shareholders

who

want

to

invest

regularly

can

arrange

to

have

$50

or

more

automatically

deducted

from

their

checking

or

savings

account

and

invested

in

any

of

the

BlackRock

funds.

Systematic

Withdrawal

Plans

Investor

class

shareholders

can

establish

a

systematic

withdrawal

plan

and

receive

periodic

payments

of

$50

or

more

from

their

BlackRock

funds,

as

long

as

their

account

balance

is

at

least

$10,000.

Retirement

Plans

Shareholders

may

make

investments

in

conjunction

with

Traditional,

Rollover,

Roth,

Coverdell,

Simple

IRAs,

SEP

IRAs

and

403(b)

Plans.

BlackRock

Privacy

Principles

BlackRock

is

committed

to

maintaining

the

privacy

of

its

current

and

former

fund

investors

and

individual

clients

(collectively,

“Clients”)

and

to

safeguarding

their

non-public

personal

information.

The

following

information

is

provided

to

help

you

understand

what

personal

information

BlackRock

collects,

how

we

protect

that

information

and

why

in

certain

cases

we

share

such

information

with

select

parties.

If

you

are

located

in

a

jurisdiction

where

specific

laws,

rules

or

regulations

require

BlackRock

to

provide

you

with

additional

or

different

privacy-related

rights

beyond

what

is

set

forth

below,

then

BlackRock

will

comply

with

those

specific

laws,

rules

or

regulations.

BlackRock

obtains

or

verifies

personal

non-public

information

from

and

about

you

from

different

sources,

including

the

following:

(i)

information

we

receive

from

you

or,

if

applicable,

your

financial

intermediary,

on

applications,

forms

or

other

documents;

(ii)

information

about

your

transactions

with

us,

our

affiliates,

or

others;

(iii)

information

we

receive

from

a

consumer

reporting

agency;

and

(iv)

from

visits

to

our

websites.

Additional

Information

(continued)

2022

BlackRock

Annual

Report

to

Shareholders

88

BlackRock

does

not

sell

or

disclose

to

non-affiliated

third

parties

any

non-public

personal

information

about

its

Clients,

except

as

permitted

by

law

or

as

is

necessary

to

respond

to

regulatory

requests

or

to

service

Client

accounts.

These

non-affiliated

third

parties

are

required

to

protect

the

confidentiality

and

security

of

this

information

and

to

use

it

only

for

its

intended

purpose.

We

may

share

information

with

our

affiliates

to

service

your

account

or

to

provide

you

with

information

about

other

BlackRock

products

or

services

that

may

be

of

interest

to

you.

In

addition,

BlackRock

restricts

access

to

non-public

personal

information

about

its

Clients

to

those

BlackRock

employees

with

a

legitimate

business

need

for

the

information.

BlackRock

maintains

physical,

electronic

and

procedural

safeguards

that

are

designed

to

protect

the

non-public

personal

information

of

its

Clients,

including

procedures

relating

to

the

proper

storage

and

disposal

of

such

information.

Fund

and

Service

Providers

Investment

Adviser

and

Administrator

BlackRock

Advisors,

LLC

Wilmington,

DE

19809

Sub-Advisers

BlackRock

International

Limited

Edinburgh,

EH3

8BL

United

Kingdom

BlackRock

(Singapore)

Limited

(a)

079912

Singapore

Accounting

Agent

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Transfer

Agent

BNY

Mellon

Investment

Servicing

(US)

Inc.

Wilmington,

DE

19809

Custodian

JPMorgan

Chase

Bank,

N.A.

New

York,

NY

10179

Independent

Registered

Public

Accounting

Firm

Deloitte

&

Touche

LLP

Boston,

MA

02116

Distributor

BlackRock

Investments,

LLC

New

York,

NY

10022

Legal

Counsel

Willkie

Farr

&

Gallagher

LLP

New

York,

NY

10019

Address

of

the

Trust

100

Bellevue

Parkway

Wilmington,

DE

19809

(a)

For

BlackRock

Sustainable

Low

Duration

Bond

Fund

and

BlackRock

Sustainable

Total

Return

Fund.

Glossary

of

Terms

Used

in

this

Report

89

Glossary

of

Terms

Used

in

this

Report

Currency

Abbreviation

EUR

Euro

GBP

British

Pound

JPY

Japanese

Yen

USD

United

States

Dollar

Portfolio

Abbreviation

CLO

Collateralized

Loan

Obligation

CSMC

Credit

Suisse

Mortgage

Capital

DAC

Designated

Activity

Company

EURIBOR

Euro

Interbank

Offered

Rate

GO

General

Obligation

Bonds

LIBOR

London

Interbank

Offered

Rate

MSCI

Morgan

Stanley

Capital

International

OTC

Over-the-counter

RB

Revenue

Bonds

REIT

Real

Estate

Investment

Trust

SOFR

Secured

Overnight

Financing

Rate

TBA

To-be-announced

TONAR

Tokyo

Overnight

Average

Rate

Want

to

know

more?

blackrock.com

|

800-441-7762

This

report

is

intended

for

current

holders.

It

is

not

authorized

for

use

as

an

offer

of

sale

or

a

solicitation

of

an

offer

to

buy

shares

of

the

Funds

unless

preceded

or

accompanied

by

the

Funds’

current

prospectus.

Past

performance

results

shown

in

this

report

should

not

be

considered

a

representation

of

future

performance.

Investment

returns

and

principal

value

of

shares

will

fluctuate

so

that

shares,

when

redeemed,

may

be

worth

more

or

less

than

their

original

cost.

Statements

and

other

information

herein

are

as

dated

and

are

subject

to

change.

SHYB-09/22-AR

Item 2 – Code of Ethics –

The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.  During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes.  During the period covered by this report, there have been no waivers granted under the code of ethics. The

registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

               Frank J. Fabozzi

Lorenzo A. Flores
Catherine A. Lynch

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert.  The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of directors in the absence of such designation or identification.  The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of directors.

Item 4 – Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

	(a) Audit Fees		(b) Audit-Related Fees1		(c) Tax Fees2		(d) All Other Fees
Entity Name	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Core Bond Portfolio	$74,970	$74,235	$44	$210	$21,400	$19,400	$431	$0
BlackRock GNMA Portfolio	$38,148	$37,774	$44	$210	$16,900	$14,900	$431	$0
BlackRock High Yield Bond Portfolio	$74,970	$74,235	$44	$210	$50,915	$20,000	$431	$0
BlackRock Impact Mortgage Fund (Formerly BlackRock U.S. Government Bond Portfolio)	$37,536	$37,168	$44	$210	$16,900	$14,900	$431	$0
BlackRock Income Fund	$59,976	$59,388	$44	$210	$16,900	$14,900	$431	$0
BlackRock Low Duration Bond Portfolio	$59,976	$59,388	$44	$210	$22,000	$20,000	$431	$0
BlackRock Sustainable High Yield Bond Fund	$74,072	$74,336	$44	$0	$16,900	$23,000	$218	$0
BlackRock Sustainable Low Duration Bond Fund	$53,958	N/A	$44	N/A	$28,900	N/A	$0	N/A

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$2,098,000	$2,032,000

1

The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2

The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3

Non-audit fees of $2,098,000 and $2,032,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription.  These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services.  Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee.  The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant.  Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”).  The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period.  Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project.  For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

                        Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services).  The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting.  At this meeting, an analysis of such services is presented to the Committee for ratification.  The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2)  None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f) Not Applicable

(g)

The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

Entity Name	Current Fiscal Year End	Previous Fiscal Year End
BlackRock Core Bond Portfolio	$21,875	$19,610
BlackRock GNMA Portfolio	$17,375	$15,110
BlackRock High Yield Bond Portfolio	$51,390	$20,210
BlackRock Impact Mortgage Fund (Formerly BlackRock U.S. Government Bond Portfolio)	$17,375	$15,110
BlackRock Income Fund	$17,375	$15,110
BlackRock Low Duration Bond Portfolio	$22,475	$20,210
BlackRock Sustainable High Yield Bond Fund	$17,162	$23,000
BlackRock Sustainable Low Duration Bond Fund	$28,944	N/A

              Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

Current Fiscal Year End	Previous Fiscal Year End
$2,098,000	$2,032,000

              These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

              (h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and

the Affiliated Service Providers

that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

               (i) – Not Applicable

               (j) – Not Applicable

Item 5 –  Audit Committee of Listed Registrant – Not Applicable

Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1(a) of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 –  Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 –  Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act)

that occurred during the period covered by this report

that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

Item 13 – Exhibits attached hereto

              (a)(1) Code of Ethics – See Item 2

              (a)(2) Section 302 Certifications are attached

section302

(a)(3)

Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(4)

Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached

section906

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Funds V  

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds V  

Date: November 22, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:     /s/ John M. Perlowski

John M. Perlowski

Chief Executive Officer (principal executive officer) of

BlackRock Funds V  

Date: November 22, 2022

By:     /s/ Trent Walker

          Trent Walker

Chief Financial Officer (principal financial officer) of

BlackRock Funds V  

Date: November 22, 2022