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: 811-05742

Name of Fund: BlackRock Funds

BlackRock Emerging Market Allocation Portfolio

Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds, 55 East 52^nd

Street, New York, NY 10055

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

Date of fiscal year end: 10/31/2016

Date of reporting period: 04/30/2016

Item 1 – Report to Stockholders

APRIL 30, 2016

  SEMI-ANNUAL REPORT (UNAUDITED)

BlackRock Emerging Market Allocation Portfolio  |  of BlackRock Funds^SM

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

	Page
The Markets in Review		3
Semi-Annual Report:
Fund Summary		4
Derivative Financial Instruments		6
About Fund Performance		7
Disclosure of Expenses		7
Financial Statements:
Consolidated Schedule of Investments		8
Consolidated Statement of Assets and Liabilities		26
Consolidated Statement of Operations		27
Consolidated Statements of Changes in Net Assets		28
Consolidated Financial Highlights		29
Notes to Consolidated Financial Statements		32
Officers and Trustees		43
Additional Information		44

2 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

The Markets in Review

Dear Shareholder,

Diverging monetary policies and shifting economic outlooks across regions have been the overarching themes driving financial markets over the past couple of years. Investors spent most of 2015 anticipating the end of the Federal Reserve’s (the “Fed”) near-zero interest rate policy as U.S. growth outpaced other developed markets. The Fed ultimately hiked rates in December, whereas the European Central Bank and the Bank of Japan took additional steps to stimulate growth, even introducing negative interest rates. The U.S. dollar had strengthened considerably ahead of these developments, causing profit challenges for U.S. companies that generate revenues overseas, and pressuring emerging market currencies and commodities prices.

Global market volatility increased in the latter part of 2015 and spilled over into early 2016. Oil prices were a key factor behind the instability after collapsing in mid-2015 due to excess global supply. China, one of the world’s largest consumers of oil, was another notable source of stress for financial markets. Signs of slowing economic growth, a depreciating yuan and declining confidence in the country’s policymakers stoked investors’ worries about the potential impact of China’s weakness on the global economy. Risk assets (such as equities and high yield bonds) suffered in this environment.

After a painful start to the new year, fears of a global recession began to fade as the first quarter wore on, allowing markets to calm and risk assets to rebound. Central bank stimulus in Europe and Japan, combined with a more tempered outlook for rate hikes in the United States, helped bolster financial markets. A softening in U.S. dollar strength offered some relief to U.S. exporters and emerging market economies. Oil prices found firmer footing as global supply showed signs of leveling off.

The selloff in risk assets at the turn of the year brought valuations to more reasonable levels, creating some appealing entry points for investors in 2016. Nonetheless, slow but relatively stable growth in the United States is countered by a less optimistic global economic outlook and uncertainties around the efficacy of China’s policy response, the potential consequences of negative interest rates in Europe and Japan, and a host of geopolitical risks.

For the 12 months ended April 30, 2016, higher-quality assets such as municipal bonds, U.S. Treasuries and investment grade corporate bonds generated positive returns, while riskier assets such as non-U.S. and small cap equities broadly declined.

At BlackRock, we believe investors need to think globally, extend their scope across a broad array of asset classes and be prepared to adjust accordingly as market conditions change over time. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of April 30, 2016
	6-month			12-month
U.S. large cap equities (S&P 500® Index)		0.43	%		1.21	%
U.S. small cap equities (Russell 2000® Index)		(1.90	)		(5.94	)
International equities (MSCI Europe, Australasia, Far East Index)		(3.07	)		(9.32	)
Emerging market equities (MSCI Emerging Markets Index)		(0.13	)		(17.87	)
3-month Treasury bills (BofA Merrill Lynch 3-Month U.S. Treasury Bill Index)		0.14			0.15
U.S. Treasury securities (BofA Merrill Lynch 10-Year U.S. Treasury Index)		3.76			3.74
U.S. investment grade bonds (Barclays U.S. Aggregate Bond Index)		2.82			2.72
Tax-exempt municipal bonds (S&P Municipal Bond Index)		3.52			5.16
U.S. high yield bonds (Barclays U.S. Corporate High Yield 2% Issuer Capped Index)		2.38			(1.08	)
Past performance is no guarantee of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

THIS PAGE NOT PART OF YOUR FUND REPORT 3

Fund Summary as of April 30, 2016

Investment Objective

BlackRock Emerging Market Allocation Portfolio’s (the “Fund”) investment objective is to seek total return.

On June 13, 2016, the Board of Trustees of the Fund approved a change in the name of the Fund to BlackRock Total Emerging Markets Fund effective on July 18, 2016.

Portfolio Management Commentary

How did the Fund perform?

• For the six-month period ended April 30, 2016, the Fund outperformed its custom blended benchmark, MSCI Emerging Markets Index (60%) (“MSCI EM” or the “equity benchmark”)/JPMorgan Emerging Markets Bond Index Plus (40%) (“EMBI+” or the “fixed income benchmark”).

What factors influenced performance?

• Within equities, the Fund’s overweight position in the materials sector — primarily in China, Turkey and Thailand — was the most important contributor to relative performance. The Fund was also helped by its positioning in financials, highlighted by long positions in Brazil and China and short positions in Turkey and Mexico. Underweights in the Brazilian telecommunications services and South Korean information technology sectors detracted from performance, as did off-benchmark allocations to the developed markets and frontier markets.

• The Fund’s fixed-income allocation made a positive contribution to returns. Long positions in Mexico, Colombia and South Korean local-currency bonds added value within the fixed-income portfolio. The Fund’s allocation to the bonds of developed-market companies with exposure to the emerging markets also contributed positively.

• As part of its investment strategy, the Fund uses derivatives, including total return swaps, to achieve exposure to specific markets or to manage market and/or equity risks. Through the use of total return swaps, the Fund was able to manage its desired exposures to the fixed income and equity markets. The use of derivatives detracted from performance.

• The Fund’s cash exposure resulted from maintaining long and short positions via the use of derivatives. The Fund was fully invested throughout the period, and the cash exposure did not have a material impact on performance.

Describe recent portfolio activity.

• Given the more benign outlook for U.S. Federal Reserve policy and the prospects for continued low interest rates around the world, the Fund increased its allocation to local currency bonds in countries with attractive yields, including Mexico, Colombia and South Africa.

• The Fund added to its equity positions, particularly in attractively valued sectors such as materials, in a reflection of China’s improving economic prospects. On the other hand, the Fund responded to the significant rally in Brazil by moving to an underweight in the country through reductions in the industrials and telecommunications services sectors. The Fund also shifted to an underweight in some of the more defensive sectors, including health care stocks in Hungary and consumer discretionary stocks in Indonesia.

Describe portfolio positioning at period end.

• The Fund continued to have a balanced exposure to fixed income and equities. In fixed income, the Fund favored countries with the highest credit quality. In addition, it had strategic allocations to some of the more stable local markets, such as Mexico, South Africa and South Korea. On the equity side, the Fund closed the period with overweights in Taiwan and Turkey and underweights in Mexico and South Korea.

4 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Total Return Based on a $10,000 Investment

¹  Assuming maximum sales charges, if any, transaction costs and other operating expenses, including investment advisory fees. Institutional Shares do not have a sales charge.

² Under normal circumstances, the Fund seeks to invest at least 80% of its net assets plus any borrowings for investment purposes in equity and debt instruments and related derivative instruments issued by, or tied economically to, companies or other issuers located in emerging markets.

³ A customized weighted index comprised of the returns of the MSCI Emerging Markets Index (60%)/JPMorgan Emerging Markets Bond Index Plus (40%). The MSCI Emerging Markets Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets and consists of the following 23 emerging market country indices: Brazil, Chile, China, Colombia, Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Peru, Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey and United Arab Emirates. JPMorgan Emerging Markets Bond Index Plus is a market capitalization-weighted index that tracks returns for actively traded external debt instruments in emerging markets.

⁴ Commencement of operations.

Performance Summary for the Period Ended April 30, 2016
				Average Annual Total Returns5
				1 Year						Since Inception6
	6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		4.08	%		(10.53	)%		N/A			(2.78	)%		N/A
Investor A		3.88			(10.74	)		(15.43	)%		(3.03	)		(4.79	)%
Investor C		3.50			(11.38	)		(12.26	)		(3.74	)		(3.74	)
MSCI Emerging Markets Index (60%)/JPMorgan Emerging Markets Bond Index Plus (40%)		2.52			(8.60	)		N/A			(1.78	)		N/A
MSCI Emerging Markets Index		(0.13	)		(17.87	)		N/A			(4.92	)		N/A
JPMorgan Emerging Markets Bond Index Plus		6.13			6.24			N/A			2.63			N/A

⁵ Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 7 for a detailed description of share classes, including any related sales charges and fees.

⁶ The Fund commenced operations on May 16, 2013.

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

Past performance is not indicative of future results.

Expense Example
	Actual						Hypothetical8
	Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		Expenses Paid During the Period7		Beginning Account Value November 1, 2015		Ending Account Value April 30, 2016		Expenses Paid During the Period7		Annualized Expense Ratio
Institutional	$	1,000.00	$	1,040.80	$	7.10	$	1,000.00	$	1,017.90	$	7.02		1.40	%
Investor A	$	1,000.00	$	1,038.80	$	8.36	$	1,000.00	$	1,016.66	$	8.27		1.65	%
Investor C	$	1,000.00	$	1,035.00	$	12.14	$	1,000.00	$	1,012.93	$	12.01		2.40	%

⁷ For each class of the Fund, expenses are equal to the annualized net expense ratio for the class, multiplied by the average account value over the period, multiplied by 182/366 (to reflect the one-half year period shown).

⁸ Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 366.

See “Disclosure of Expenses” on Page 7 for further information on how expenses were calculated.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 5

Fund Summary (concluded)

Portfolio Information as of April 30, 2016

Portfolio Composition	Percent of Long-Term Investments
Foreign Government Obligations		64	%
Corporate Bonds		16
Foreign Agency Obligations		12
Investment Companies		8

	Percentage of Total Investments1
Geographic Allocation	Long			Short			Total
China		11	%		5	%		16	%
Taiwan		6			3			9
South Korea		6			3			9
Mexico		5			3			8
United States		7			—			7
Turkey		4			2			6
Hong Kong		3			3			6
Brazil		4			2			6
South Africa		4			1			5
Thailand		3			1			4
Russia		3			—			3
Colombia		3			—			3
Philippines		3			—			3
Indonesia		2			—			2
Poland		2			—			2
Other2		9			2			11
Total		75	%		25	%		100	%

¹  Total investments include the gross notional values of long and short positions of the underlying derivative contracts utilized by the Fund and exclude short-term securities.

²  Other includes a 1% or less investment in each of the following countries: Argentina, Chile, Czech Republic, Greece, Hungary, India, Kazakhstan, Lithuania, Malaysia, Netherlands, Panama, Peru, Qatar, Romania, Saudi Arabia, Switzerland, Ukraine, United Arab Emirates, United Kingdom, Uruguay and Venezuela.

Derivative Financial Instruments

The Fund may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other asset without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the

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

6 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

About Fund Performance

• Institutional 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 5.25% and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

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

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com/funds to obtain performance data current to the most recent month end.

Performance results do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. Figures shown in the performance tables on the previous page assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor, has contractually agreed to waive and/or reimburse a portion of the Fund’s expenses. Without such waiver and/or reimbursement, the Fund’s performance would have been lower. The Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 5 of the Notes to Consolidated Financial Statements for additional information on waivers and reimbursements.

Disclosure of Expenses

Shareholders of the Fund may incur the following charges:

(a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, service and distribution fees, including 12b-1 fees, and other Fund expenses. The expense example on the previous page (which is based on a hypothetical investment of $1,000 invested on November 1, 2015 and held through April 30, 2016) is intended to assist shareholders both in calculating expenses based on an investment in the Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 7

Consolidated Schedule of Investments April 30, 2016 (Unaudited) (Percentages shown are based on Net Assets)

Corporate Bonds	Par   (000)			Value
United States — 10.6%
3M Co., 3.88%, 6/15/44		USD	50	$	52,731
Abbott Laboratories, 5.30%, 5/27/40			100		114,263
Amazon.com, Inc.:
4.80%, 12/05/34			50		56,878
4.95%, 12/05/44			75		87,623
Bristol-Myers Squibb Co., 4.50%, 3/01/44			100		115,476
Eli Lilly & Co., 3.70%, 3/01/45			100		103,650
Exxon Mobil Corp., 4.11%, 3/01/46			150		159,804
General Electric Co.:
6.75%, 3/15/32			150		207,331
5.88%, 1/14/38			150		197,762
6.88%, 1/10/39			75		109,763
4.13%, 10/09/42			75		80,032
4.50%, 3/11/44			100		112,371
Goldman Sachs Group, Inc.:
6.13%, 2/15/33			150		183,671
4.80%, 7/08/44			150		161,108
HSBC Holdings PLC:
6.50%, 9/15/37			225		271,497
6.10%, 1/14/42			125		158,748
Intel Corp.:
4.80%, 10/01/41			75		84,935
4.25%, 12/15/42			100		106,137
4.90%, 7/29/45			75		85,874
International Business Machines Corp., 5.60%, 11/30/39			75		93,130
Johnson & Johnson:
4.38%, 12/05/33			200		230,772
3.70%, 3/01/46			100		106,208
Merck & Co., Inc.:
6.50%, 12/01/33			100		135,240
3.70%, 2/10/45			100		102,258
Microsoft Corp.:
3.50%, 2/12/35			75		75,115
5.30%, 2/08/41			175		218,655
3.75%, 2/12/45			125		124,448
4.45%, 11/03/45			125		138,719
NIKE, Inc., 3.88%, 11/01/45			75		79,521
Oracle Corp.:
4.30%, 7/08/34			125		133,572
3.90%, 5/15/35			100		102,392
5.38%, 7/15/40			150		182,170
4.13%, 5/15/45			100		103,525
PepsiCo, Inc.:
4.00%, 3/05/42			100		103,809
4.25%, 10/22/44			100		108,527
4.45%, 4/14/46			50		55,806
Pfizer, Inc.:
7.20%, 3/15/39			100		147,548
4.40%, 5/15/44			75		85,313

Corporate Bonds	Par   (000)			Value
United States (continued)
Procter & Gamble Co., 5.55%, 3/05/37		USD	100	$	132,749
QUALCOMM, Inc., 4.80%, 5/20/45			100		101,245
Visa, Inc., 4.30%, 12/14/45			200		219,797
Wal-Mart Stores, Inc.:
5.25%, 9/01/35			125		156,151
6.50%, 8/15/37			150		209,945
5.63%, 4/01/40			75		97,240
5.63%, 4/15/41			200		260,451
4.30%, 4/22/44			100		112,364
Total Corporate Bonds — 10.6%					6,066,324
Foreign Agency Obligations
Chile — 1.4%
Bonos del Banco Central de Chile en UF, 3.00%, 3/01/22		CLP	362,647		603,996
Corp. Nacional del Cobre de Chile, 4.25%, 7/17/42		USD	200		180,733
					784,729
China — 0.4%
State Grid Overseas Investment 2013, Ltd., 3.13%, 5/22/23			200		202,330
Hong Kong — 0.5%
Sinochem Overseas Capital Co., Ltd., 4.50%, 11/12/20			100		106,317
Sinopec Group Overseas Development 2012, Ltd., 3.90%, 5/17/22			200		209,279
					315,596
Malaysia — 0.8%
Petroliam Nasional Bhd, 7.63%, 10/15/26			200		271,641
Petronas Capital, Ltd., 3.50%, 3/18/25			200		205,352
					476,993
Mexico — 1.0%
Mexican Udibonos, 4.50%, 12/04/25		MXN	5,996		392,949
Petroleos Mexicanos:
5.50%, 1/21/21		USD	100		105,000
6.50%, 6/02/41			50		49,900
5.63%, 1/23/46			25		22,258
					570,107
Netherlands — 0.4%
Kazakhstan Temir Zholy Finance BV, 6.38%, 10/06/20			200		202,660

Portfolio Abbreviations

ADR	American Depositary Receipts	KLIBOR	Kuala Lumpur Interbank Offered Rate	PLN	Polish Zloty
BKIBOR	Bangkok Interbank Offered Rate	KRW	South Korean Won	S&P	Standard and Poor’s
COP	Columbian Peso	LIBOR	London Interbank Offered Rate	THB	Thai Baht
CLP	Chilean Peso	MSCI	Morgan Stanley Capital International	TWD	Taiwan Dollar
ETF	Exchange-Traded Fund	MXN	Mexican Peso	USD	United States Dollar
GDR	Global Depositary Receipts	MYR	Malaysian Ringgit	WIBOR	Warsaw InterBank Offered Bank
INR	Indian Rupee	OTC	Over-the-Counter	ZAR	South African Rand

See Notes to Consolidated Financial Statements.

8 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

Foreign Agency Obligations	Par   (000)			Value
Philippines — 0.2%
Power Sector Assets & Liabilities Management Corp., 7.39%, 12/02/24		USD	100	$	134,802
South Africa — 0.3%
Eskom Holdings SOC, Ltd., 6.75%, 8/06/23			200		188,250
United Kingdom — 0.4%
Sinopec Group Overseas Development 2013, Ltd., 4.38%, 10/17/23			200		213,059
Total Foreign Agency Obligations — 5.4%					3,088,526
Foreign Government Obligations
Argentine Republic Government International Bond:
8.75%, 6/02/17			65		67,990
8.28%, 12/31/33			449		468,175
5.25%, 12/31/38			375		239,063
Brazilian Government International Bond:
4.88%, 1/22/21			350		356,125
8.88%, 4/15/24			100		121,750
4.25%, 1/07/25			200		186,000
8.75%, 2/04/25			100		122,500
8.25%, 1/20/34			100		115,250
7.13%, 1/20/37			100		103,500
5.00%, 1/27/45			200		161,500
Chile Government International Bond, 2.25%, 10/30/22			250		250,000
Colombia Government International Bond:
7.75%, 4/14/21		COP	4,750,000		1,698,281
4.38%, 7/12/21		USD	600		627,000
4.00%, 2/26/24			200		201,000
8.13%, 5/21/24			150		189,225
7.38%, 9/18/37			200		241,500
6.13%, 1/18/41			200		214,500
5.63%, 2/26/44			200		204,000
5.00%, 6/15/45			200		190,500
Export-Import Bank of China, 3.63%, 7/31/24			200		210,193
Indonesia Government International Bond:
11.63%, 3/04/19			200		250,764
3.75%, 4/25/22			400		409,811
8.50%, 10/12/35			100		138,975
7.75%, 1/17/38			200		261,766
6.75%, 1/15/44			200		244,923
Kazakhstan Government International Bond, 5.13%, 7/21/25			200		211,450
Korea Treasury Bond, 1.13%, 6/10/23		KRW	534,815		469,741
Lithuania Government International Bond:
5.13%, 9/14/17		USD	200		210,650
7.38%, 2/11/20			700		828,555
6.13%, 3/09/21			300		347,940
6.63%, 2/01/22			400		483,000
Mexico Government International Bond:
5.95%, 3/19/19			150		167,625
5.13%, 1/15/20			200		220,000
3.50%, 1/21/21			100		103,500
3.63%, 3/15/22			200		206,800
4.00%, 10/02/23			250		261,875
3.60%, 1/30/25			200		203,250
8.30%, 8/15/31			100		153,750

Foreign Government Obligations	Par   (000)			Value
Mexico Government International Bond (continued):
6.75%, 9/27/34		USD	100	$	130,000
6.05%, 1/11/40			250		296,250
4.75%, 3/08/44			330		333,300
5.55%, 1/21/45			250		281,250
4.60%, 1/23/46			200		197,700
5.75%, 10/12/49			276		284,280
Panama Government International Bond:
4.00%, 9/22/24			200		210,500
7.13%, 1/29/26			500		646,250
6.70%, 1/26/36			100		128,000
4.30%, 4/29/53			200		192,250
Peruvian Government International Bond:
7.13%, 3/30/19			200		229,700
8.75%, 11/21/33			100		151,750
6.55%, 3/14/37			330		423,225
5.63%, 11/18/50			250		289,375
Philippine Government International Bond:
8.38%, 6/17/19			150		181,619
6.50%, 1/20/20			100		117,745
4.00%, 1/15/21			100		109,737
4.20%, 1/21/24			300		340,236
10.63%, 3/16/25			50		81,835
5.50%, 3/30/26			400		500,877
9.50%, 2/02/30			100		170,752
7.75%, 1/14/31			225		347,010
6.38%, 1/15/32			200		279,567
6.38%, 10/23/34			300		426,742
5.00%, 1/13/37			200		252,410
3.95%, 1/20/40			200		220,924
Poland Government International Bond:
6.38%, 7/15/19			200		227,730
5.13%, 4/21/21			400		448,000
5.00%, 3/23/22			200		223,750
3.00%, 3/17/23			150		151,313
4.00%, 1/22/24			250		267,125
Romanian Government International Bond:
6.75%, 2/07/22			100		118,375
4.38%, 8/22/23			300		318,777
4.88%, 1/22/24			400		437,500
6.13%, 1/22/44			126		154,508
Russian Foreign Bond — Eurobond:
5.00%, 4/29/20			100		105,740
4.88%, 9/16/23			200		212,874
12.75%, 6/24/28			200		343,604
7.50%, 3/31/30			325		396,069
South Africa Government Bond — CPI Linked, 5.50%, 12/07/23		ZAR	5,499		491,698
South Africa Government International Bond:
5.88%, 5/30/22		USD	500		546,325
4.67%, 1/17/24			200		200,750
5.88%, 9/16/25			200		215,899
6.25%, 3/08/41			100		109,500
Turkey Government International Bond:
7.50%, 7/14/17			100		106,612
6.75%, 4/03/18			400		431,185
7.50%, 11/07/19			200		229,146
5.13%, 3/25/22			200		212,400
5.75%, 3/22/24			200		219,500
7.38%, 2/05/25			100		121,250
8.00%, 2/14/34			100		131,909

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 9

Consolidated Schedule of Investments (continued)

Foreign Government Obligations	Par   (000)				Value
Turkey Government International Bond (continued):
6.88%, 3/17/36		USD	100		$	119,125
6.75%, 5/30/40			100			118,750
4.88%, 4/16/43			400			375,000
6.63%, 2/17/45			200			236,280
Ukraine Government International Bond:
7.75%, 9/01/19			—	(a)		341
7.75%, 9/01/20			160			153,454
7.75%, 9/01/25			100			93,931
Uruguay Government International Bond, 7.63%, 3/21/36			200			259,750
Venezuela Government International Bond:
7.00%, 12/01/18			50			22,500
7.75%, 10/13/19			175			70,219
6.00%, 12/09/20			45			16,425
12.75%, 8/23/22			210			97,387
9.00%, 5/07/23			50			19,063
8.25%, 10/13/24			205			76,619
7.65%, 4/21/25			65			23,644
11.75%, 10/21/26			180			76,275
9.25%, 9/15/27			185			78,856
9.25%, 5/07/28			50			19,250
11.95%, 8/05/31			300			127,500
7.00%, 3/31/38			150			53,625
Total Foreign Government Obligations — 46.2%						26,425,244

Investment Companies	Shares		Value
United States — 5.1%
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio (b)		325,950	$	2,930,294
Total Long-Term Investments (Cost — $37,878,333) — 67.3%				38,510,388
Short-Term Securities — 32.3%
BlackRock Liquidity Funds, TempFund, Institutional Class, 0.40% (b)(c)		18,524,038		18,524,038
Total Short-Term Securities (Cost — $18,524,038) — 32.3%				18,524,038
Total Investments (Cost — $56,402,371) — 99.6%				57,034,426
Other Assets Less Liabilities — 0.4%				249,444
Net Assets — 100.0%			$	57,283,870

Notes to Consolidated Schedule of Investments

(a) Amount is less than $500.

(b) During the six months ended April 30, 2016, investments in issuers considered to be affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at October 31, 2015		Shares Purchased		Shares Sold			Shares Held at April 30, 2016		Value at April 30, 2016		Income		Realized Loss
BlackRock Emerging Markets Flexible Dynamic Bond Portfolio		320,593		5,357		—			325,950	$	2,930,294	$	53,165		—
BlackRock Liquidity Funds, TempFund, Institutional Class		21,581,862		—		(3,057,824	)1		18,524,038		18,524,038		26,026		—
iShares MSCI Frontier 100 ETF		20,794		—		(20,794	)		—		—		1,737	$	(149,908	)
Total										$	21,454,332	$	80,928	$	(149,908	)
1   Represents net shares sold.

(c) Current yield as of period end.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Contracts Long	Issue		Expiration		Notional Value		Unrealized Depreciation
157		SGX S&P Nifty Index		May 2016	$	2,478,245	$	(13,416	)

See Notes to Consolidated Financial Statements.

10 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	576,701	CLP	400,000,000	Goldman Sachs International		6/15/16	$	(26,433	)
USD	676,819	COP	2,200,000,000	BNP Paribas S.A.		6/15/16		(90,512	)
USD	249,676	COP	770,000,000	BNP Paribas S.A.		6/15/16		(18,890	)
USD	673,916	COP	2,200,000,000	Credit Suisse International		6/15/16		(93,415	)
USD	211,202	KRW	260,000,000	Goldman Sachs International		6/15/16		(15,444	)
USD	211,331	KRW	260,000,000	HSBC Bank PLC		6/15/16		(15,316	)
USD	189,392	MXN	3,425,000	Goldman Sachs International		6/15/16		(8,846	)
USD	190,500	MXN	3,425,000	Morgan Stanley & Co. International PLC		6/15/16		(7,738	)
USD	442,166	ZAR	7,100,000	Royal Bank of Scotland PLC		6/15/16		(52,401	)
INR	161,042,270	USD	2,386,165	Barclays Bank PLC		7/05/16		12,082
Total							$	(316,913	)

OTC Interest Rate Swaps

Fixed Rate	Floating Rate	Counterparty	Effective Date			Expiration Date		Notional Amount (000)		Value			Premiums Paid (Received)	Unrealized Appreciation (Depreciation)
5.63%1	Mexico Interbank TIIE 28 Day	Bank of America N.A.		9/21/16	2		9/15/21	MXN	1,660	$	380		—	$	380
5.73%1	Mexico Interbank TIIE 28 Day	Bank of America N.A.		9/21/16	2		9/15/21	MXN	11,720		5,511		—		5,511
0.81%1	Taiwan Secondary Commercial Paper 90 Days	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	TWD	38,070		(2,029	)	—		(2,029	)
0.81%1	Taiwan Secondary Commercial Paper 90 Days	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	TWD	4,510		(206	)	—		(206	)
1.55%1	3-Month LIBOR	Bank of America N.A.		9/21/16	2		9/21/21	KRW	90,000		180		—		180
1.58%1	3-Month LIBOR	Bank of America N.A.		9/21/16	2		9/21/21	KRW	711,010		2,571		—		2,571
1.83%1	6M WIBOR	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	PLN	4,760		(9,799	)	—		(9,799	)
1.91%1	6M BIBOR	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	THB	4,170		(219	)	—		(219	)
1.94%1	6M BIBOR	Bank of America N.A.		9/21/16	2		9/21/21	THB	43,030		(219	)	—		(219	)
3.79%1	3-Month KLIBOR	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	MYR	360		65		—		65
3.83%1	3-Month KLIBOR	BNP Paribas S.A.		9/21/16	2		9/21/21	MYR	5,400		3,607		—		3,607
4.34%1	Sinacofi Chile Interbank Rate Average	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	CLP	456,140		5,999		—		5,999
8.52%1	Taiwan Secondary Commercial Paper 90 Days	JPMorgan Chase Bank N.A.		9/21/16	2		9/21/21	ZAR	11,660		6,895		—		6,895
Total										$	12,736		—	$	12,736
1   Fund pays the floating rate and receives the fixed rate.
2   Forward swap.

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 11

Consolidated Schedule of Investments (continued)

OTC Total Return Swaps¹

Reference Entity	Counterparty		Expiration Date		Net Notional		Unrealized Appreciation (Depreciation)			Net Value of Reference Entities
Equity Securities Long/Short:		Goldman Sachs & Co.		5/05/16 – 11/01/17	$	15,586,556	$	1,679,838	2	$	17,288,441
		Goldman Sachs & Co.		5/19/16	$	1,525		1,988	3		—
		UBS AG		8/08/16	$	15,902,315		(1,389,330	)4		14,476,834
Total							$	292,496		$	31,765,275
1    The Fund receives or pays the total return on a portfolio of long and short positions underlying the total return swap. In addition, the Fund pays or receives a variable rate of interest, based on a specified benchmark, plus or minus a spread in a range of 20-1050 basis points. The benchmark and spread are determined based upon the country and/or currency of the individual underlying positions. The following are the specified benchmarks used in determining the variable rate of interest: GarbanIntercapital Federal Funds Rate Open IntercontinentalExchangeLIBOR: BRLSpot Next EURSpot Next JPYSpot Next MXNSpot Next USD1 Week
2    Amount includes $(22,047) of net dividends and financing fees.
3    Amount includes $3,513 of net dividends and financing fees.
4    Amount includes $36,151 of net dividends and financing fees.

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Goldman Sachs & Co. as of April 30, 2016, expiration dates 5/05/16 – 11/01/17:

	Shares		Value
Reference Entity — Long
Brazil
AMBEV SA		17,900	$	100,918
Banco Bradesco SA — ADR		7,443		55,599
Banco Bradesco SA, Preference Shares		49,104		369,788
Banco do Brasil SA		19,600		126,003
BM&FBovespa SA		15,600		77,926
Braskem SA — ADR		1,965		28,001
Braskem SA, Preference A Shares		1,400		9,993
BRF SA		6,500		92,985
BRF SA — ADR		12,792		181,902
CETIP SA — Mercados Organizado		19,900		244,291
Cia Brasileira de Distribuicao Grupo Pao de Acucar — ADR		2,488		36,449
Cia Brasileira de Distribuicao Grupo Pao de Acucar, Preference Shares		700		10,301
Cia Energetica de Minas Gerais — ADR		9,727		19,065
Cia Energetica de Minas Gerais, Preference Shares		9,800		19,519
Cia Energetica de Sao Paulo, Preference ‘B’ Shares		31,100		130,214
Companhia de Saneamento Basico do Estado de Sao Paulo		3,100		23,796
Equatorial Energia SA		2,300		28,449
Fibria Celulose SA		22,900		202,283
Fibria Celulose SA — Sponsored — ADR		17,823		157,912
Gerdau SA, Preference Shares		8,100		18,394
Hypermarcas SA		4,300		37,933
Itau Unibanco Holding SA, Preference Shares		25,034		239,258
Itau Unibanco Holding SA, Preference Shares — ADR		3,224		30,725
Itausa — Investimentos Itau SA, Preference Shares		135,200		340,432
JBS SA		37,900		99,619
Marfrig Global Foods SA		20,400		38,496
Minerva SA		5,100		15,674
Multiplus SA		9,100		100,413

	Shares		Value
Reference Entity — Long (continued)
Brazil (continued)
Petroleo Brasileiro SA, Preference Shares		15,900	$	47,294
Raia Drogasil SA		500		8,002
Smiles SA		500		5,801
Suzano Papel e Celulose SA, Preference ‘A’ Shares		32,200		122,930
Tim Participacoes SA		3,600		7,997
Tractebel Energia SA		8,100		89,850
Transmissora Alianca de Energia Eletrica SA		4,500		25,593
Ultrapar Participacoes SA		2,200		46,325
				3,190,130
China
3SBio, Inc.		72,000		86,916
Agile Property Holdings Ltd.		14,000		7,950
Air China Ltd., Class H		40,000		30,283
Alibaba Group Holding Ltd. — SP — ADR		5,506		423,632
Anhui Conch Cement Co. Ltd., Class H		140,500		370,227
Anhui Expressway Co. Ltd., Class H		36,000		28,666
Baidu, Inc. — ADR		1,693		328,950
Bank of China Ltd., Class H		352,000		142,523
Bank of Communications Co. Ltd., Class H		65,000		40,967
Beijing Capital International Airport Co. Ltd., Class H		208,000		223,164
Beijing North Star Co. Ltd.		14,000		4,446
BYD Electronic International Co. Ltd.		11,000		6,300
China Biologic Products, Inc.		728		85,176
China Cinda Asset Management Co. Ltd.		262,000		85,796
China CITIC Bank Corp. Ltd., Class H		72,000		45,155
China Communications Construction Co. Ltd., Class H		40,000		48,013
China Communications Services Corp. Ltd., Class H		242,000		114,222
China Construction Bank Corp., Class H		731,000		464,278
China Everbright Bank Co. Ltd., Class H		100,000		45,345
China Galaxy Securities Co. Ltd., Class H		48,000		42,100
China Harmony New Energy Auto Holding Ltd.		71,000		43,946
China Lesso Group Holdings Ltd.		13,000		7,148
China Life Insurance Co. Ltd., Class H		81,000		186,588
China Machinery Engineering Corp.		25,000		16,985
China Merchants Bank Co. Ltd., Class H		2,000		4,381

See Notes to Consolidated Financial Statements.

12 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

	Shares		Value
Reference Entity — Long (continued)
China (continued)
China Molybdenum Co. Ltd.		24,000	$	4,032
China Pacific Insurance Group Co. Ltd., Class H		40,000		140,258
China Petroleum & Chemical Corp. — ADR		3,824		270,624
China Petroleum & Chemical Corp. Class H		130,000		91,609
China Railway Construction Corp. Ltd., Class H		25,000		31,782
China Railway Group Ltd., Class H		220,000		174,136
China Telecom Corp. Ltd., Class H		38,000		18,813
China Unicom Hong Kong Ltd.		58,000		67,877
China Vanke Co. Ltd., Class H		1,900		4,742
CITIC Securities Co. Ltd., Class H		115,000		252,745
CNOOC Ltd.		20,000		24,706
Cogobuy Group		12,000		17,365
Dalian Wanda Commercial Properties Co. Ltd., Class H		25,900		169,559
Datang International Power Generation Co. Ltd., Class H		298,000		84,660
Dongfang Electric Corp. Ltd.		8,000		6,220
Dongfeng Motor Group Co. Ltd., Class H		58,000		63,382
Fuyao Glass Industry Group Co. Ltd.		4,400		9,918
GF Securities Co. Ltd., Class H		10,400		23,604
Great Wall Motor Co. Ltd., Class H		153,500		115,476
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H		44,000		93,208
Huadian Fuxin Energy Corp. Ltd.		46,000		10,020
Huadian Power International Corp. Ltd., Class H		126,000		64,609
Huaneng Power International, Inc., Class H		58,000		41,369
Huatai Securities Co. Ltd., Class H		12,800		27,000
Industrial & Commercial Bank of China Ltd., Class H		880,000		471,153
Jiangsu Expressway Co. Ltd., Class H		14,000		18,398
Jiangxi Copper Co. Ltd., Class H		48,000		58,604
Longfor Properties Co. Ltd.		69,500		97,503
Lonking Holdings Ltd.		105,000		17,528
Metallurgical Corp. of China Ltd.		343,000		103,063
NetEase, Inc. — ADR		5,532		778,352
New China Life Insurance Co. Ltd., Class H		18,500		60,308
New Oriental Education & Technology Group, Inc. — ADR		3,255		127,466
People’s Insurance Co. Group of China Ltd., Class H		395,000		158,855
PICC Property & Casualty Co. Ltd., Class H		50,000		90,954
Ping An Insurance Group Co. of China Ltd., Class H		111,000		520,932
Shanghai Electric Group Co. Ltd., Class H		44,000		18,393
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		27,600		58,500
Shenzhen Expressway Co. Ltd.		58,000		51,475
Sino-Ocean Land Holdings Ltd.		249,500		112,209
Sinopec Shanghai Petrochemical Co. Ltd., Class H		122,000		59,844
Sinopharm Group Co. Ltd., Class H		22,800		97,453
Sinotrans Ltd., Class H		153,000		70,714
Sohu.com, Inc.		6,689		300,537
Tencent Holdings Ltd.		50,500		1,027,590
Tianjin Capital Environmental Protection Group Co. Ltd.		40,000		22,238
Tianneng Power International Ltd.		122,000		99,924
Weichai Power Co. Ltd., Class H		44,000		52,837
Xinjiang Goldwind Science & Technology Co. Ltd.		27,600		45,455
XTEP International Holdings Ltd.		9,500		5,604
Zhejiang Expressway Co. Ltd., Class H		108,000		110,203
ZTE Corp., Class H		66,160		102,931
				9,429,894
Czech Republic
Czech Republic AS		548		5,568

	Shares		Value
Reference Entity — Long (continued)
Hong Kong
Beijing Enterprises Holdings Ltd.		2,000	$	10,431
Belle International Holdings Ltd.		123,000		75,012
CGN Meiya Power Holdings Co. Ltd.		38,000		5,731
China Everbright Ltd.		6,000		11,844
China High Speed Transmission Equipment Group Co. Ltd.		94,000		72,849
China Jinmao Holdings Group Ltd.		236,000		67,569
China Mobile Ltd.		40,000		459,231
China Mobile Ltd. — ADR		8,425		484,606
China Power International Development Ltd.		206,000		87,925
China Resources Cement Holdings Ltd.		166,000		54,623
China Resources Land Ltd.		78,222		192,167
China Resources Power Holdings Co. Ltd.		32,000		53,896
China Taiping Insurance Holdings Co. Ltd.		33,600		68,468
China Unicom Hong Kong Ltd. — ADR		12,058		141,079
ENN Energy Holdings Ltd.		6,000		29,266
Geely Automobile Holdings Ltd.		255,000		126,758
GOME Electrical Appliances Holding Ltd.		505,000		64,767
Haier Electronics Group Co. Ltd.		36,000		60,463
KWG Property Holding Ltd.		112,000		72,464
Shimao Property Holdings Ltd.		57,000		78,669
Sino Biopharmaceutical Ltd.		160,000		113,377
Skyworth Digital Holdings Ltd.		96,000		62,478
				2,393,673
Hungary
MOL Hungarian Oil & Gas PLC		3,986		243,549
Indonesia
AKR Corporindo Tbk PT		38,300		18,814
Bank Central Asia Tbk PT		34,700		34,246
Bank Negara Indonesia Persero Tbk PT		7,700		2,666
Matahari Department Store Tbk PT		46,400		66,531
Telekomunikasi Indonesia Persero Tbk PT		49,400		13,254
Telekomunikasi Indonesia Persero Tbk PT — ADR		8,767		467,895
Unilever Indonesia Tbk PT		22,400		72,145
United Tractors Tbk PT		182,300		206,368
				881,919
Malaysia
Astro Malaysia Holdings Bhd		95,800		67,759
British American Tobacco Malaysia Bhd		23,900		280,694
IOI Corp. Bhd		36,800		41,548
KNM Group Bhd		69,000		8,355
MISC Bhd		23,900		51,697
Petronas Chemicals Group Bhd		29,600		50,843
Top Glove Corp. Bhd		104,900		133,098
YTL Power International Bhd		104,500		40,125
				674,119
Mexico
Alfa SAB de CV, Series A		343,400		645,497
Alsea SAB de CV		7,200		27,574
America Movil SAB de CV, Series L		198,700		140,438
Cemex SAB de CV		549,704		408,013
Cemex SAB de CV — ADR		48,150		358,717
El Puerto de Liverpool SAB de CV, Series C1		28,695		326,184
Gentera SAB de CV		48,300		96,069
Gruma SAB de CV		25,786		376,689
Grupo Aeroportuario del Centro Norte SAB de C.V.		9,200		53,239
Grupo Aeroportuario del Pacifico SAB de CV, Class B		25,800		243,084
Grupo Bimbo SAB de CV, Series A		128,200		390,830
Grupo Televisa SAB CPO		7,300		42,541

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 13

Consolidated Schedule of Investments (continued)

	Shares		Value
Reference Entity — Long (continued)
Mexico (continued)
Industrias Penoles SAB de CV		3,060	$	47,835
Kimberly-Clark de Mexico SAB de CV, Class A		107,900		255,378
OHL Mexico SAB de CV		36,500		59,360
Promotora y Operadora de Infraestructura SAB de CV		29,535		374,564
Wal-Mart de Mexico SAB de CV		124,206		307,182
				4,153,194
Netherlands
Yandex NV		7,128		145,910
Peru
Credicorp Ltd.		2,732		397,288
Southern Copper Corp.		1,402		41,597
				438,885
Philippines
Energy Development Corp.		578,900		72,713
Globe Telecom, Inc.		3,320		155,104
Jollibee Foods Corp.		1,290		6,311
Metropolitan Bank & Trust Co.		4		7
				234,135
Poland
Bank Handlowy w Warszawie SA		751		14,567
Enea SA		27,234		84,198
Energa SA		3,775		12,300
Eurocash SA		416		5,944
Orange Polska SA		4,596		7,490
Polski Koncern Naftowy Orlen SA		19,117		344,784
Polskie Gornictwo Naftowe i Gazownictwo SA		14,128		18,818
Tauron Polska Energia SA		119,772		92,846
				580,947
Qatar
Barwa Real Estate Co.		11,791		108,451
Commercial Bank of Qatar QSC		607		6,333
Qatar Electricity & Water Co.		1,099		62,576
Qatar National Bank		1,151		45,150
				222,510
Russia
Aeroflot — Russian Airlines OJSC		98,227		116,994
AK Transneft OAO, Preference Shares		1		3,075
Alrosa AO		165,200		186,100
Gazprom OAO — ADR		73,192		380,304
Inter Rao Ues OAO		2,347,000		66,413
Lukoil PJSC — ADR		8,320		354,495
Magnitogorsk Iron & Steel Works OJSC		134,300		49,308
Magnitogorsk Iron & Steel Works OJSC, — GDR		4,100		19,724
MMC Norilsk Nickel		267		38,584
MMC Norilsk Nickel PJSC — ADR		5,069		74,906
Mobile Telesystems — ADR		4,844		44,855
Moscow Exchange MICEX-RTS OAO		95,740		151,127
NovaTek OAO — GDR		740		71,414
Novolipetsk Steel OJSC — GDR		1,013		13,760
Polymetal International PLC		2,711		28,102
Sberbank of Russia		24,990		47,686
Severstal PAO — GDR		4,614		53,736
Sistema JSFC		96,900		29,044
Tatneft OAO		12,132		63,485

	Shares		Value
Reference Entity — Long (continued)
Russia (continued)
Tatneft PAO — ADR		1,994	$	62,859
Uralkali PJSC — GDR		761		9,587
				1,865,558
South Africa
Barclays Africa Group Ltd.		2,990		30,277
Barloworld Ltd.		4,497		25,960
Bidvest Group Ltd.		14,260		362,296
Capitec Bank Holdings Ltd.		2,953		122,531
Clicks Group Ltd.		2,467		18,018
Harmony Gold Mining Co. Ltd. — ADR		9,559		34,986
Hyprop Investments Ltd.		35,814		308,820
Imperial Holdings Ltd.		384		4,013
Investec Ltd.		2,948		22,760
Mediclinic International PLC		5,985		79,021
Mondi Ltd.		2,212		42,589
Mr Price Group Ltd.		2,646		33,638
MTN Group Ltd.		4,612		48,281
Naspers Ltd., Class N		1,911		262,975
Netcare Ltd.		38,995		99,433
PSG Group Ltd.		218		3,045
Redefine Properties Ltd.		18,095		15,619
Sanlam Ltd.		2,064		10,023
Sappi Ltd.		22,696		98,434
Sasol Ltd.		5,209		170,387
Sasol Ltd. — ADR		3,619		118,667
Sibanye Gold Ltd.		28,112		107,604
Standard Bank Group Ltd.		20,603		185,022
Vodacom Group Ltd.		1,186		13,790
				2,218,189
South Korea
Cell Biotech Co. Ltd.		471		25,070
Coway Co. Ltd.		2,757		238,695
Crown Confectionery Co. Ltd.		1		433
Daesang Corp.		150		3,755
GS Home Shopping, Inc.		143		23,119
Hyundai Development Co-Engineering & Construction		3,404		149,957
Hyundai Engineering & Construction Co. Ltd.		2,340		81,974
Hyundai Home Shopping Network Corp.		196		22,948
Hyundai Merchant Marine Co. Ltd.		13,575		23,490
Hyundai Motor Co.		70		8,783
Hyundai Steel Co.		3,057		167,681
Hyundai Wia Corp.		809		68,310
Industrial Bank of Korea		10,969		116,594
Interpark Holdings Corp.		1,624		12,506
Kangwon Land, Inc.		8,542		319,744
KEPCO Plant Service & Engineering Co. Ltd.		98		6,479
Kia Motors Corp.		157		6,585
Korea Electric Power Corp.		714		38,784
Korea Investment Holdings Co. Ltd.		1,203		48,387
Korea Zinc Co. Ltd.		96		41,628
KT Corp.		2,188		58,610
KT Corp. — ADR		44,483		605,414
KT&G Corp.		1,553		167,313
LG Display Co. Ltd.		934		19,442
LG Household & Health Care Ltd.		207		182,257
LG Innotek Co. Ltd.		862		55,492
LG Uplus Corp.		1,419		13,920

See Notes to Consolidated Financial Statements.

14 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

	Shares		Value
Reference Entity — Long (continued)
South Korea (continued)
Lotte Chemical Corp.		303	$	77,286
Lotte Food Co. Ltd.		53		38,080
Lotte Shopping Co. Ltd.		300		71,425
LS Corp.		2,565		113,662
Medy-Tox, Inc.		109		40,293
NAVER Corp.		480		284,471
Orion Corp.		7		5,695
Poongsan Corp.		710		19,770
S-Oil Corp.		292		22,193
Samsung Card Co. Ltd.		649		22,054
Samsung Electronics Co. Ltd.		527		574,341
Samsung SDS Co. Ltd.		143		21,322
Shinhan Financial Group Co. Ltd.		1,403		51,442
Shinhan Financial Group Co. Ltd. — ADR		7,655		279,867
Silicon Works Co. Ltd.		1,354		37,787
SK Hynix, Inc.		13,273		325,558
SK Innovation Co. Ltd.		1,059		143,026
SK Networks Co. Ltd.		4,011		23,824
SKC Co. Ltd.		1,511		37,019
Sungwoo Hitech Co. Ltd.		13,238		107,877
Yuhan Corp.		46		11,749
				4,816,111
Taiwan
AU Optronics Corp.		66,000		18,886
AU Optronics Corp. — ADR		49,242		137,878
Catcher Technology Co. Ltd.		10,000		69,988
Cathay Financial Holding Co. Ltd.		67,000		75,026
Chailease Holding Co. Ltd.		2,080		3,481
ChipMOS Technologies Bermuda Ltd.		1,522		25,600
Chunghwa Telecom Co. Ltd.		52,000		175,564
Chunghwa Telecom Co. Ltd. — ADR		18,505		631,020
Compeq Manufacturing Co. Ltd.		132,000		73,036
Cub Elecparts, Inc.		1,149		13,885
Elan Microelectronics Corp.		59,000		60,944
Elite Advanced Laser Corp.		14,400		68,903
Everlight Electronics Co. Ltd.		40,000		55,928
Faraday Technology Corp.		30,600		40,912
Feng TAY Enterprise Co. Ltd.		66,340		285,052
First Financial Holding Co. Ltd.		555		271
Foxconn Technology Co. Ltd.		66,660		137,129
Fubon Financial Holding Co. Ltd.		227,000		274,969
Highwealth Construction Corp.		11,200		16,789
Hon Hai Precision Industry Co. Ltd.		181,692		432,802
Hon Hai Precision Industry Co. Ltd. — GDR		3,641		17,722
Hota Industrial Manufacturing Co. Ltd.		6,000		28,707
Innolux Corp.		437,000		134,863
Inventec Co. Ltd.		15,000		9,891
King Yuan Electronics Co. Ltd.		261,000		229,717
Lite-On Technology Corp.		21,285		25,853
Micro-Star International Co. Ltd.		3,000		4,775
Novatek Microelectronics Corp.		4,000		13,938
PChome Online, Inc.		4,804		50,776
Pegatron Corp.		16,000		33,707
PharmaEngine, Inc.		1,000		6,894
Pou Chen Corp.		143,000		179,763
Radiant Opto-Electronics Corp.		20,000		28,704
Sitronix Technology Corp.		49,000		142,877
Taiwan Cement Corp.		75,000		76,290

	Shares			Value
Reference Entity — Long (continued)
Taiwan (continued)
Taiwan Cooperative Financial Holding Co. Ltd.		8		$	4
Taiwan Fertilizer Co. Ltd.		60,000			81,437
Taiwan Semiconductor Manufacturing Co. Ltd.		150,000			689,155
Taiwan Semiconductor Manufacturing Co. Ltd. — ADR		9,078			214,150
Transcend Information, Inc.		3,000			8,418
Uni-President Enterprises Corp.		26,000			46,805
Yuanta Financial Holding Co. Ltd.		547,093			180,066
					4,802,575
Thailand
Airports of Thailand PCL		43,300			485,932
Bangchak Petroleum PCL		17,200			15,265
Bumrungrad Hospital PCL		21,500			124,950
Central Pattana PCL		259,600			392,038
Delta Electronics Thailand PCL		99,800			205,714
Indorama Ventures PCL		307,000			250,487
IRPC PCL		255,000			37,232
Pruksa Real Estate PCL		62,100			45,779
PTT Exploration & Production PCL, Foreign Registered Shares		18,600			40,070
PTT Global Chemical PCL, Foreign Registered Shares		350,100			626,431
Siam Cement PCL, Foreign Registered Shares		3,400			47,431
Thai Oil PCL		78,500			148,325
Thai Union Group PCL		77,100			45,691
Tipco Asphalt PCL		16,900			11,902
					2,477,247
Turkey
Arcelik AS		75,880			509,438
BIM Birlesik Magazalar AS		224			4,930
Enka Insaat ve Sanayi AS		137,733			239,097
Eregli Demir ve Celik Fabrikalari TAS		137,657			229,622
KOC Holding AS		108,905			569,022
Koza Altin Isletmeleri AS		3,271			21,413
TAV Havalimanlari Holding AS		9,047			52,722
Turk Hava Yollari		77,079			189,959
Turk Telekomunikasyon AS		9,097			21,970
Turkiye Is Bankasi, Class C		94,558			165,793
					2,003,966
United Kingdom
British American Tobacco PLC		2,518			154,261
United States
Genpact Ltd.		9,816			273,768
Total Reference Entity — Long					41,206,108
Reference Entity — Short
Brazil
AMBEV SA — ADR		(56,394	)		(315,242	)
Cosan Ltd., Class A Shares		(1,879	)		(10,109	)
CPFL Energia SA — ADR		(4,058	)		(46,992	)
EcoRodovias Infraestrutura e Logistica SA		(18,700	)		(40,779	)
Embraer SA — ADR		(17,763	)		(410,325	)
Petroleo Brasileiro SA — ADR		(12,080	)		(71,272	)
Telefonica Brasil SA — ADR		(27,689	)		(341,129	)
Tim Participacoes SA — ADR		(22,717	)		(251,932	)
					(1,487,780	)

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 15

Consolidated Schedule of Investments (continued)

	Shares			Value
Reference Entity — Short (continued)
Chile
Banco Santander Chile — ADR		(7,431	)	$	(144,161	)
Enersis Chile SA — ADR		(9,908	)		(63,114	)
Enersis SA — ADR		(6,999	)		(59,912	)
Sociedad Quimica y Minera de Chile SA — ADR		(5,828	)		(121,397	)
					(388,584	)
China
58.com, Inc. — ADR		(2,375	)		(129,794	)
AAC Technologies Holdings, Inc.		(25,500	)		(176,995	)
AviChina Industry & Technology Co. Ltd., Class H		(225,000	)		(156,833	)
BBMG Corp.		(30,500	)		(22,290	)
CGN Power Co. Ltd.		(361,000	)		(115,194	)
China Dongxiang Group Co. Ltd.		(20,000	)		(4,119	)
China Eastern Airlines Corp. Ltd., Class H		(102,000	)		(55,764	)
China Longyuan Power Group Corp., Class H		(123,000	)		(85,097	)
China Medical System Holdings Ltd.		(101,000	)		(131,068	)
China Minsheng Banking Corp. Ltd.		(40,500	)		(38,041	)
China National Building Material Co. Ltd., Class H		(248,000	)		(127,861	)
China Oilfield Services Ltd.		(132,000	)		(114,510	)
China Shanshui Cement Group Ltd.		(763,000	)		(95,443	)
China Shenhua Energy Co. Ltd.		(99,000	)		(166,700	)
China Shipping Container Lines Co. Ltd., Class H		(33,000	)		(7,533	)
China Shipping Development Co. Ltd., Class H		(38,000	)		(26,982	)
China Southern Airlines Co. Ltd., Class H		(102,000	)		(63,958	)
China Tian Lun Gas Holdings Ltd.		(73,500	)		(54,958	)
CNOOC Ltd. — ADR		(641	)		(79,119	)
Country Garden Holdings Co. Ltd.		(619,000	)		(244,240	)
Ctrip.com International Ltd. — ADR		(7,400	)		(322,714	)
Fosun International Ltd.		(113,000	)		(156,134	)
Guangshen Railway Co. Ltd.		(14,000	)		(7,252	)
Guangzhou Automobile Group Co. Ltd., Class H		(18,000	)		(20,917	)
Guangzhou R&F Properties Co. Ltd.		(52,000	)		(72,515	)
Haitian International Holdings Ltd.		(4,000	)		(6,825	)
Hengan International Group Co. Ltd.		(59,500	)		(533,109	)
Hollysys Automation Technologies Ltd.		(5,805	)		(111,282	)
Huaneng Renewables Corp. Ltd.		(152,000	)		(44,853	)
JD.com, Inc. — ADR		(23,419	)		(598,590	)
PetroChina Co. Ltd.		(52,000	)		(38,045	)
Semiconductor Manufacturing International Corp.		(1,846,000	)		(151,756	)
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		(44,000	)		(26,414	)
Shenzhou International Group Holdings Ltd.		(22,000	)		(113,730	)
Shui On Land Ltd.		(1,166,500	)		(304,417	)
Sichuan Expressway Co. Ltd.		(46,000	)		(15,379	)
SINA Corp.		(4,157	)		(208,224	)
SOHO China Ltd.		(302,500	)		(152,085	)
SouFun Holdings Ltd. — ADR		(14,847	)		(84,480	)
Sunac China Holdings Ltd.		(30,000	)		(19,180	)
TAL Education Group — ADR		(5,312	)		(307,352	)
Tingyi Cayman Islands Holding Corp.		(178,000	)		(207,355	)
Uni-President China Holdings Ltd.		(46,000	)		(42,838	)
Vipshop Holdings Ltd. — ADR		(2,558	)		(34,891	)
Want Want China Holdings Ltd.		(120,000	)		(92,040	)
West China Cement Ltd.		(198,000	)		(41,783	)
YY, Inc. — ADR		(7,638	)		(479,819	)
Zhuzhou CSR Times Electric Co. Ltd.		(40,500	)		(230,434	)
					(6,320,912	)
Colombia
Bancolombia SA — ADR		(3,510	)		(135,802	)

	Shares			Value
Reference Entity — Short (continued)
Czech Republic
CEZ		(1,691	)	$	(33,023	)
Greece
Tsakos Energy Navigation Ltd.		(10,415	)		(66,239	)
Hong Kong
Brilliance China Automotive Holdings Ltd.		(172,000	)		(169,651	)
China Everbright International Ltd.		(237,000	)		(265,328	)
China Gas Holdings Ltd.		(8,000	)		(11,550	)
China Mengniu Dairy Co. Ltd.		(8,000	)		(13,529	)
China Merchants Holdings International Co. Ltd.		(168,000	)		(498,323	)
China Oceanwide Holdings Ltd.		(64,000	)		(7,402	)
China Resources Gas Group Ltd.		(20,000	)		(56,597	)
China Traditional Chinese Medicine Co. Ltd.		(618,000	)		(289,961	)
China Travel International Investment Hong Kong Ltd.		(136,000	)		(39,636	)
CITIC Ltd.		(413,000	)		(602,276	)
COSCO Pacific Ltd.		(228,000	)		(242,461	)
Far East Horizon Ltd.		(331,000	)		(262,740	)
Hopewell Highway Infrastructure Ltd.		(716,500	)		(357,051	)
Kunlun Energy Co. Ltd.		(326,000	)		(283,000	)
Poly Property Group Co. Ltd.		(144,000	)		(38,443	)
Shanghai Industrial Holdings Ltd.		(101,000	)		(229,625	)
Towngas China Co. Ltd.		(219,000	)		(113,309	)
Yuexiu Property Co. Ltd.		(356,000	)		(51,683	)
					(3,532,565	)
India
MakeMyTrip Ltd.		(16,029	)		(294,292	)
Indonesia
Charoen Pokphand Indonesia Tbk PT		(191,400	)		(53,700	)
Mexico
America Movil SAB de CV — ADR, Series L		(9,465	)		(134,024	)
Arca Continental SAB de C.V.		(4,900	)		(33,824	)
Coca-Cola Femsa SAB de C.V.		(16,600	)		(144,284	)
Fibra Uno Administracion SA de C.V.		(258,688	)		(615,872	)
Fomento Economico Mexicano SAB de C.V.		(22,200	)		(206,559	)
Genomma Lab Internacional SAB de C.V.		(83,900	)		(92,167	)
Grupo Aeroportuario del Sureste SAB de C.V.		(6,390	)		(98,131	)
Grupo Carso SAB de C.V.		(49,362	)		(236,042	)
Grupo Financiero Banorte SAB de C.V.		(12,300	)		(69,827	)
Grupo Financiero Inbursa SAB de C.V.		(41,900	)		(82,267	)
Grupo Lala SAB de C.V.		(51,800	)		(138,528	)
Grupo Mexico SAB de C.V.		(226,100	)		(575,085	)
Grupo Televisa SAB — ADR		(11,447	)		(334,596	)
Infraestructura Energetica Nova SAB de C.V.		(175,336	)		(685,154	)
Mexichem SAB de C.V.		(234,521	)		(592,005	)
					(4,038,365	)
Peru
Cia de Minas Buenaventura SAA — ADR		(12,081	)		(122,622	)
Poland
Bank Pekao SA		(755	)		(30,704	)
Powszechny Zaklad Ubezpieczen SA		(21,732	)		(196,701	)
					(227,405	)
South Africa
Aspen Pharmacare Holdings Ltd.		(377	)		(8,894	)
Coronation Fund Managers Ltd.		(749	)		(3,892	)
Foschini Group Ltd.		(14,883	)		(159,882	)
Impala Platinum Holdings Ltd.		(5,438	)		(22,646	)
Life Healthcare Group Holdings Ltd.		(6,227	)		(16,335	)

See Notes to Consolidated Financial Statements.

16 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

	Shares			Value
Reference Entity — Short (continued)
South Africa (continued)
Nampak Ltd.		(23,841	)	$	(40,779	)
Remgro Ltd.		(23,873	)		(428,968	)
RMB Holdings Ltd.		(4,490	)		(18,356	)
Woolworths Holdings Ltd.		(577	)		(3,716	)
					(703,468	)
South Korea
Cheil Industries, Inc.		(4,543	)		(520,627	)
Daelim Industrial Co. Ltd.		(968	)		(76,606	)
Dong-A ST Co. Ltd.		(112	)		(13,998	)
EQUISnZAROO Co. Ltd.		(1,986	)		(8,772	)
G-treeBNT Co. Ltd.		(309	)		(5,262	)
Halla Visteon Climate Control Corp.		(5,965	)		(53,701	)
Hyundai Glovis Co. Ltd.		(84	)		(13,962	)
Hyundai Heavy Industries Co. Ltd.		(523	)		(52,912	)
Korea Aerospace Industries Ltd.		(629	)		(37,257	)
LG Display Co. Ltd. — ADR		(16,431	)		(168,418	)
LG International Corp.		(2,987	)		(98,879	)
S-1 Corp.		(1,031	)		(84,090	)
Samsung SDI Co. Ltd.		(32	)		(3,187	)
Samsung Techwin Co. Ltd.		(4,999	)		(181,970	)
Samwha Capacitor Co. Ltd.		(1,397	)		(18,008	)
					(1,337,649	)
Switzerland
Luxoft Holding, Inc.		(10,650	)		(615,677	)
Taiwan
Advanced Semiconductor Engineering, Inc. — ADR		(36,076	)		(185,070	)
Asustek Computer, Inc.		(18,000	)		(157,795	)
Chang Hwa Commercial Bank		(645,210	)		(336,361	)
Cheng Shin Rubber Industry Co. Ltd.		(122,000	)		(253,145	)
Delta Electronics, Inc.		(49,000	)		(226,974	)
Evergreen Marine Corp. Taiwan Ltd.		(270,250	)		(99,485	)
Far EasTone Telecommunications Co. Ltd.		(80,000	)		(180,393	)
LuxNet Corp.		(4,000	)		(6,999	)
President Chain Store Corp.		(38,000	)		(268,674	)
Quanta Computer, Inc.		(299,000	)		(480,603	)
Shin Kong Financial Holding Co. Ltd.		(107,000	)		(21,595	)
Taiwan Mobile Co. Ltd.		(68,000	)		(224,152	)
Wistron Corp.		(203,392	)		(120,071	)
					(2,561,317	)
Thailand
Advanced Info Service PCL		(800	)		(3,573	)
Turkey
Anadolu Efes Biracilik Ve Malt Sanayii AS		(35,664	)		(280,388	)
Turkcell Iletisim Hizmetleri AS — ADR		(55,242	)		(596,614	)
Turkiye Garanti Bankasi AS		(194,823	)		(599,707	)
Turkiye Halk Bankasi		(2,763	)		(10,611	)
					(1,487,320	)
United States
AES Corp.		(41,528	)		(463,452	)
Dorian LPG Ltd.		(4,323	)		(43,922	)
					(507,374	)
Total Reference Entity — Short					(23,917,667	)
Net Value of Reference Entity — Goldman Sachs & Co.					17,288,441

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with Goldman Sachs & Co. as of April 30, 2016, expiration date 5/19/16:

	Shares		Value
Reference Entity — Long
United Kingdom
Eurasian Natural Resources Corp. PLC		448		—
Net Value of Reference Entity — Goldman Sachs & Co.				—

The following table represents the individual long and short positions and related values of the equity securities underlying the total return swap with UBS AG as of April 30, 2016, expiration date 8/08/16:

Reference Entity — Long
Brazil
AES Tiete Energia SA	13,000	$	53,372
Banco Bradesco SA, Preference Shares	4,052		30,514
Banco do Brasil SA	6,600		42,430
BM&FBovespa SA	12,300		61,442
Braskem SA, Preference A Shares	1,400		9,993
BRF SA	10,100		144,485
CETIP SA — Mercados Organizado	3,800		46,649
Cia Brasileira de Distribuicao Grupo Pao de Acucar, Preference Shares	1,800		26,488
Cia Energetica de Sao Paulo, Preference ‘B’ Shares	16,000		66,991
Equatorial Energia SA	900		11,132
Fibria Celulose SA	6,100		53,883
Hypermarcas SA	6,200		54,694
Itau Unibanco Holding SA, Preference Shares	12,350		118,033
JBS SA	61,500		161,652
Marfrig Global Foods SA	13,600		25,664
Minerva SA	10,270		31,563
MRV Engenharia e Participacoes SA	10,700		37,396
Multiplus SA	4,600		50,758
Smiles SA	5,900		68,448
Suzano Papel e Celulose SA, Preference ‘A’ Shares	22,300		85,135
Telefonica Brasil SA, Preference Shares	600		7,390
Transmissora Alianca de Energia Eletrica SA	7,200		40,948
Ultrapar Participacoes SA	3,700		77,911
			1,306,971
Chile
Aguas Andinas SA, Class A	124,546		72,161
Banco Santander Chile SA	545,445		26,245
Empresa Nacional de Electricidad SA	6,671		6,140
Endesa SA	6,671		3,127
			107,673
China
3SBio, Inc.	91,500		110,456
Agricultural Bank of China Ltd., Class H	342,000		123,432
Air China Ltd., Class H	56,000		42,397
Anhui Expressway Co. Ltd., Class H	86,000		68,481
Bank of China Ltd., Class H	283,000		114,585
Bank of Communications Co. Ltd., Class H	420,000		264,712
BYD Electronic International Co. Ltd.	57,500		32,930
China Cinda Asset Management Co. Ltd.	246,000		80,556
China CITIC Bank Corp. Ltd., Class H	19,000		11,916
China Communications Construction Co. Ltd., Class H	157,000		188,453
China Communications Services Corp. Ltd., Class H	428,000		202,013
China Construction Bank Corp., Class H	185,000		117,499
China Everbright Bank Co. Ltd., Class H	219,000		99,305

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 17

Consolidated Schedule of Investments (continued)

	Shares		Value
Reference Entity — Long (continued)
China (continued)
China Galaxy Securities Co. Ltd., Class H		264,500	$	231,990
China Harmony New Energy Auto Holding Ltd.		47,500		29,401
China Lesso Group Holdings Ltd.		78,000		42,885
China Life Insurance Co. Ltd., Class H		17,000		39,160
China Machinery Engineering Corp.		85,000		57,749
China Molybdenum Co. Ltd.		24,000		4,032
China Pacific Insurance Group Co. Ltd., Class H		60,600		212,490
China Petroleum & Chemical Corp. Class H		130,000		91,609
China Railway Construction Corp. Ltd., Class H		127,500		162,090
China Railway Group Ltd., Class H		99,000		78,361
China Telecom Corp. Ltd., Class H		288,000		142,579
China Vanke Co. Ltd., Class H		32,500		81,121
CITIC Securities Co. Ltd., Class H		48,500		106,592
CSPC Pharmaceutical Group Ltd.		40,000		35,551
Dalian Wanda Commercial Properties Co. Ltd., Class H		1,700		11,129
Datang International Power Generation Co. Ltd., Class H		12,000		3,409
Dongfang Electric Corp. Ltd.		6,800		5,287
Dongfeng Motor Group Co. Ltd., Class H		120,000		131,135
Fuyao Glass Industry Group Co. Ltd.		1,600		3,606
GF Securities Co. Ltd., Class H		9,800		22,242
Great Wall Motor Co. Ltd., Class H		90,000		67,706
Greentown China Holdings Ltd.		17,000		12,633
Guangzhou Baiyunshan Pharmaceutical Holdings Co. Ltd., Class H		40,000		84,735
Haitong Securities Co. Ltd., Class H		43,200		71,393
Huadian Fuxin Energy Corp. Ltd.		146,000		31,804
Huadian Power International Corp. Ltd., Class H		104,000		53,328
Huaneng Power International, Inc., Class H		268,000		191,153
Huatai Securities Co. Ltd., Class H		42,000		88,594
Industrial & Commercial Bank of China Ltd., Class H		278,000		148,841
Jiangsu Expressway Co. Ltd., Class H		30,000		39,425
Jiangxi Copper Co. Ltd., Class H		81,000		98,894
Longfor Properties Co. Ltd.		72,000		101,010
Lonking Holdings Ltd.		36,000		6,009
Metallurgical Corp. of China Ltd.		440,000		132,209
New China Life Insurance Co. Ltd., Class H		10,800		35,207
On-Bright Electronics, Inc.		3,000		15,797
People’s Insurance Co. Group of China Ltd., Class H		294,000		118,237
PICC Property & Casualty Co. Ltd., Class H		54,000		98,230
Ping An Insurance Group Co. of China Ltd., Class H		4,000		18,772
Shanghai Electric Group Co. Ltd., Class H		52,000		21,737
Shanghai Pharmaceuticals Holding Co. Ltd., Class H		68,500		145,190
Shenzhen Expressway Co. Ltd.		22,000		19,525
Sino-Ocean Land Holdings Ltd.		23,000		10,344
Sinopec Engineering Group Co. Ltd., Class H		6,000		5,565
Sinopec Shanghai Petrochemical Co. Ltd., Class H		324,000		158,930
Sinopharm Group Co. Ltd., Class H		58,000		247,906
Sinotrans Ltd., Class H		79,000		36,513
Tencent Holdings Ltd.		23,900		486,325
Tianjin Capital Environmental Protection Group Co. Ltd.		110,000		61,154
Tianneng Power International Ltd.		160,000		131,048
TravelSky Technology Ltd., Class H		19,000		35,308
Weichai Power Co. Ltd., Class H		27,000		32,423
Xinjiang Goldwind Science & Technology Co. Ltd.		40,200		66,207
XTEP International Holdings Ltd.		16,500		9,733
Zijin Mining Group Co. Ltd., Class H		38,000		12,678

	Shares		Value
Reference Entity — Long (continued)
China (continued)
ZTE Corp., Class H		21,600	$	33,605
				5,877,321
Colombia
Almacenes Exito SA		763		4,291
Cementos Argos SA		1,951		7,931
Corp. Financiera Colombiana SA		208		2,817
Ecopetrol SA		26,107		12,968
Grupo Argos SA		1,923		12,691
Grupo de Inversiones Suramericana SA		1,587		21,448
Interconexion Electrica SA		4,360		13,315
Isagen SA ESP		8,850		12,753
				88,214
Czech Republic
Czech Republic AS		1,714		17,416
Greece
Alpha Bank AE		680		1,478
Eurobank Ergasias SA		617		521
FF Group		218		4,493
Hellenic Telecommunications Organization SA		2,017		19,636
Jumbo SA		476		6,235
National Bank of Greece SA		844		252
OPAP SA		1,808		13,667
Piraeus Bank SA		145		43
Titan Cement Co. SA		329		7,505
				53,830
Hong Kong
Belle International Holdings Ltd.		66,000		40,250
CGN Meiya Power Holdings Co. Ltd.		44,000		6,636
China Everbright Ltd.		22,000		43,429
China High Speed Transmission Equipment Group Co. Ltd.		21,000		16,275
China Huarong Energy Co. Ltd.		1,200		115
China Jinmao Holdings Group Ltd.		292,000		83,602
China Mobile Ltd.		33,500		384,606
China Power International Development Ltd.		52,000		22,195
China Resources Cement Holdings Ltd.		488,000		160,578
China Resources Land Ltd.		4,000		9,827
China Resources Power Holdings Co. Ltd.		58,000		97,686
China Taiping Insurance Holdings Co. Ltd.		12,000		24,453
Geely Automobile Holdings Ltd.		90,000		44,738
GOME Electrical Appliances Holding Ltd.		649,000		83,236
Guangdong Investment Ltd.		56,000		79,075
Haier Electronics Group Co. Ltd.		50,000		83,976
Huabao International Holdings Ltd.		49,000		19,279
KWG Property Holding Ltd.		168,500		109,020
Nine Dragons Paper Holdings Ltd.		43,000		30,811
Shimao Property Holdings Ltd.		9,500		13,112
Skyworth Digital Holdings Ltd.		208,000		135,369
				1,488,268
Hungary
MOL Hungarian Oil & Gas PLC		6,193		378,399
Indonesia
Adhi Karya Persero Tbk PT		38,600		7,795
Bank Central Asia Tbk PT		24,000		23,686
Bank Negara Indonesia Persero Tbk PT		52,900		18,316

See Notes to Consolidated Financial Statements.

18 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

	Shares		Value
Reference Entity — Long (continued)
Indonesia (continued)
Gudang Garam Tbk PT		1,000	$	5,240
Indofood Sukses Makmur Tbk PT		213,600		114,809
Matahari Department Store Tbk PT		69,100		99,080
Telekomunikasi Indonesia Persero Tbk PT		1,034,300		277,495
United Tractors Tbk PT		154,700		175,124
				721,545
Malaysia
Astro Malaysia Holdings Bhd		25,500		18,036
British American Tobacco Malaysia Bhd		9,000		105,701
IOI Corp. Bhd		41,200		46,516
KNM Group Bhd		667,400		80,811
MISC Bhd		15,400		33,311
Petronas Chemicals Group Bhd		43,600		74,890
Tenaga Nasional Bhd		57,500		211,225
Top Glove Corp. BHD		19,800		25,122
Westports Holdings Bhd		47,200		50,054
YTL Power International Bhd		57,900		22,232
				667,898
Netherlands
Steinhoff International Holdings NV		7,831		48,987
Philippines
Energy Development Corp.		800,400		100,535
Globe Telecom, Inc.		2,645		123,569
Megaworld Corp.		83,000		6,658
Metro Pacific Investments Corp.		245,000		30,310
				261,072
Poland
Bank Handlowy w Warszawie SA		1,296		25,138
Enea SA		14,069		43,497
Energa SA		7,498		24,430
Eurocash SA		3,125		44,649
KGHM Polska Miedz SA		4,280		83,443
Orange Polska SA		25,322		41,265
PGE SA		13,126		45,325
Polskie Gornictwo Naftowe i Gazownictwo SA		4,736		6,308
Powszechna Kasa Oszczednosci Bank Polski SA		1,020		6,536
Tauron Polska Energia SA		229,267		177,726
				498,317
Qatar
Ezdan Holding Group QSC		805		4,062
Qatar National Bank		708		27,773
				31,835
Russia
Aeroflot — Russian Airlines OJSC		36,436		43,397
Alrosa AO		123,300		138,899
Gazprom OAO — ADR		4,398		22,852
Inter Rao Ues OAO		5,634,000		159,426
Lukoil PJSC — ADR		540		23,008
Magnitogorsk Iron & Steel Works OJSC		216,200		79,377
Magnitogorsk Iron & Steel Works OJSC — GDR		3,836		18,454
MMC Norilsk Nickel		248		35,838
NovaTek OAO — GDR		148		14,283
Polymetal International PLC		2,910		30,165
Rosneft Oil Co.		10,650		57,662
Rosneft Oil Co. OJSC		12,367		67,871

	Shares		Value
Reference Entity — Long (continued)
Russia (continued)
Sberbank of Russia		1,330	$	2,538
Severstal OAO		1,900		21,422
Severstal PAO — GDR		2,442		28,440
Tatneft OAO		8,490		44,427
Tatneft PAO — ADR		4,094		129,060
Uralkali OJSC		8,960		22,576
Uralkali PJSC — GDR		4,371		55,066
				994,761
South Africa
AngloGold Ashanti Ltd.		721		11,721
Barclays Africa Group Ltd.		6,012		60,879
Barloworld Ltd.		1,431		8,261
Bidvest Group Ltd.		1,042		26,474
Clicks Group Ltd.		13,420		98,016
FirstRand Ltd.		35,136		112,931
Gold Fields Ltd.		2,041		9,443
Investec Ltd.		1,543		11,913
Kumba Iron Ore Ltd.		9,032		73,403
Mediclinic International PLC		5,993		79,126
Mondi Ltd.		1,952		37,583
Mr. Price Group Ltd.		3,443		43,770
MTN Group Ltd.		14,993		156,954
Naspers Ltd., Class N		510		70,182
Netcare Ltd.		128,526		327,726
Pick n Pay Stores Ltd.		7,577		39,307
PSG Group Ltd.		699		9,762
Sappi Ltd.		8,131		35,265
Sibanye Gold Ltd.		1,325		5,072
Standard Bank Group Ltd.		6,237		56,010
Telkom SA SOC Ltd.		7,793		31,071
Truworths International Ltd.		5,669		42,332
Vodacom Group Ltd.		4,318		50,205
				1,397,406
South Korea
Amorepacific Corp.		37		13,196
Cell Biotech Co. Ltd.		412		21,930
Coway Co. Ltd.		1,060		91,772
GS Home Shopping, Inc.		102		16,490
Hyundai Development Co-Engineering & Construction		332		14,626
Hyundai Engineering & Construction Co. Ltd.		977		34,226
Hyundai Mipo Dockyard		205		13,071
Hyundai Mobis Co. Ltd.		2,196		500,472
Hyundai Steel Co.		1,914		104,986
Hyundai Wia Corp.		554		46,779
Interpark Holdings Corp.		3,239		24,944
Kangwon Land, Inc.		1,026		38,405
KB Financial Group, Inc.		1,957		59,878
Kia Motors Corp.		880		36,909
Korea Electric Power Corp.		1,984		107,768
Korea Investment Holdings Co. Ltd.		1,649		66,326
Korea Zinc Co. Ltd.		61		26,451
KT Corp.		3,713		99,460
KT&G Corp.		69		7,434
LG Display Co. Ltd.		1,386		28,850
LG Electronics, Inc.		324		16,487
LG Household & Health Care Ltd.		135		118,863
LG Life Sciences Ltd.		159		9,518

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 19

Consolidated Schedule of Investments (continued)

	Shares		Value
Reference Entity — Long (continued)
South Korea (continued)
Lotte Chemical Corp.		228	$	58,156
LOTTE Himart Co. Ltd.		345		17,042
Lotte Shopping Co. Ltd.		43		10,238
LS Corp.		838		37,134
NAVER Corp.		424		251,282
Neowiz Games Corp.		452		5,912
NongShim Co. Ltd.		179		58,620
Orion Corp.		87		70,781
Poongsan Corp.		2,552		71,060
POSCO		413		86,530
Posco ICT Co. Ltd.		1		5
S-Oil Corp.		410		31,161
Samsung Card Co. Ltd.		222		7,544
Samsung Electronics Co. Ltd.		611		665,886
Samsung SDS Co. Ltd.		124		18,489
Shinhan Financial Group Co. Ltd.		2,716		99,585
SK Hynix, Inc.		4,549		111,577
SK Innovation Co. Ltd.		344		46,460
SK Networks Co. Ltd.		702		4,170
SKC Co. Ltd.		386		9,457
Sungwoo Hitech Co. Ltd.		9,115		74,279
Woori Bank		912		8,379
				3,242,588
Taiwan
AU Optronics Corp.		522,000		149,371
Catcher Technology Co. Ltd.		18,000		125,979
Cathay Financial Holding Co. Ltd.		100,000		111,979
Chaun-Choung Technology Corp.		4,000		13,638
Chen Full International Co. Ltd.		13,000		23,929
Compeq Manufacturing Co. Ltd.		15,000		8,300
Elite Advanced Laser Corp.		30,000		143,548
Everlight Electronics Co. Ltd.		72,000		100,669
First Financial Holding Co. Ltd.		132,600		64,848
FocalTech Systems Co. Ltd.		6,310		5,404
Formosa Chemicals & Fibre Corp.		33,000		84,090
Formosa Petrochemical Corp.		48,000		136,145
Foxconn Technology Co. Ltd.		68,680		141,284
Fubon Financial Holding Co. Ltd.		103,000		124,766
General Interface Solution Holding Ltd.		12,000		31,741
Gintech Energy Corp.		24,000		16,296
Highwealth Construction Corp.		5,400		8,095
Hon Hai Precision Industry Co. Ltd.		155,510		370,435
Hon Hai Precision Industry Co. Ltd. — GDR		23,906		116,360
Hota Industrial Manufacturing Co. Ltd.		17,000		81,337
Innolux Corp.		586,311		180,942
Inventec Co. Ltd.		58,000		38,243
King Yuan Electronics Co. Ltd.		240,000		211,234
Lite-On Technology Corp.		27,425		33,311
MediaTek, Inc.		2,000		14,184
Micro-Star International Co. Ltd.		239,000		380,396
Nan Ya Plastics Corp.		2,000		3,909
Nanya Technology Corp.		19,000		22,102
Novatek Microelectronics Corp.		2,000		6,969
PChome Online, Inc.		8,476		89,587
Pegatron Corp.		37,000		77,947
Pou Chen Corp.		136,000		170,963
Radiant Opto-Electronics Corp.		33,000		47,361
Ruentex Industries Ltd.		36,000		50,131

	Shares			Value
Reference Entity — Long (continued)
Taiwan (continued)
SinoPac Financial Holdings Co. Ltd.		13,957		$	4,124
Sitronix Technology Corp.		52,000			151,624
Taiwan Fertilizer Co. Ltd.		41,000			55,649
Taiwan Semiconductor Manufacturing Co. Ltd.		100,000			459,437
Transcend Information, Inc.		7,000			19,643
Uni-President Enterprises Corp.		24,840			44,717
Vanguard International Semiconductor Corp.		20,000			30,475
Yuanta Financial Holding Co. Ltd.		63,160			20,788
Zhen Ding Technology Holding Ltd.		38,000			79,642
					4,051,592
Thailand
Airports of Thailand PCL		14,700			164,970
Bangchak Petroleum PCL		8,600			7,632
Central Pattana PCL		115,300			174,122
Delta Electronics Thailand PCL		85,900			177,063
IRPC PCL		287,400			41,962
Pruksa Real Estate PCL		65,500			48,286
PTT Exploration & Production PCL, Foreign Registered Shares		96,100			207,029
Siam Cement PCL, Foreign Registered Shares		2,200			30,691
Thai Oil PCL		105,700			199,719
Thai Union Group PCL		77,800			46,105
Tipco Asphalt PCL		44,500			31,340
					1,128,919
Turkey
Arcelik AS		25,737			172,791
BIM Birlesik Magazalar AS		15,362			338,065
Enka Insaat ve Sanayi AS		104,517			181,436
Eregli Demir ve Celik Fabrikalari TAS		234,952			391,917
KOC Holding AS		26,003			135,864
Koza Altin Isletmeleri AS		16,554			108,369
TAV Havalimanlari Holding AS		24,545			143,037
Turk Hava Yollari		103,513			255,105
Turk Telekomunikasyon AS		94,702			228,717
Turkcell Iletisim Hizmetleri AS		7,973			34,503
Turkiye Is Bankasi, Class C		1,951			3,421
Vestel Beyaz Esya Sanayi ve Ticaret		2,093			9,631
					2,002,856
United Arab Emirates
DP World Ltd.		184			3,433
Emaar Malls Group PJSC		15,694			12,285
Emaar Properties PJSC		11,503			21,051
					36,769
United Kingdom
BHP Billiton PLC		4,552			62,478
British American Tobacco PLC		5,770			353,490
SABMiller PLC		811			49,573
					465,541
Total Reference Entity — Long					24,868,178
Reference Entity — Short
Brazil
Centrais Eletricas Brasileiras SA, Preferred B Shares		(4,000	)		(14,898	)
Cielo SA		(64,748	)		(630,678	)

See Notes to Consolidated Financial Statements.

20 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

	Shares			Value
Reference Entity — Short (continued)
Brazil (continued)
Cosan SA Industria e Comercio		(600	)	$	(5,555	)
EcoRodovias Infraestrutura e Logistica SA		(26,900	)		(58,661	)
WEG SA		(14,900	)		(65,765	)
					(775,557	)
China
AAC Technologies Holdings, Inc.		(8,500	)		(58,998	)
AviChina Industry & Technology Co. Ltd., Class H		(21,000	)		(14,638	)
BBMG Corp.		(95,000	)		(69,429	)
CGN Power Co. Ltd.		(46,000	)		(14,678	)
China Conch Venture Holdings Ltd.		(25,500	)		(51,595	)
China Longyuan Power Group Corp., Class H		(5,000	)		(3,459	)
China Medical System Holdings Ltd.		(17,000	)		(22,061	)
China Minsheng Banking Corp. Ltd.		(1,500	)		(1,409	)
China National Building Material Co. Ltd., Class H		(58,000	)		(29,903	)
China Oilfield Services Ltd.		(6,000	)		(5,205	)
China Shanshui Cement Group Ltd.		(23,000	)		(2,877	)
China Shenhua Energy Co. Ltd.		(13,000	)		(21,890	)
China Shipping Container Lines Co. Ltd., Class H		(84,000	)		(19,176	)
China Southern Airlines Co. Ltd., Class H		(26,000	)		(16,303	)
Country Garden Holdings Co. Ltd.		(10,000	)		(3,946	)
CSR Corp. Ltd., Class H		(20,000	)		(19,410	)
Fosun International Ltd.		(448	)		(619	)
Guangshen Railway Co. Ltd.		(90,000	)		(46,622	)
Guangzhou R&F Properties Co. Ltd.		(13,200	)		(18,408	)
Haitian International Holdings Ltd.		(8,000	)		(13,649	)
Hengan International Group Co. Ltd.		(500	)		(4,480	)
Huaneng Renewables Corp. Ltd.		(56,000	)		(16,525	)
Kingsoft Corp. Ltd.		(22,000	)		(50,512	)
Li Ning Co. Ltd.		(120,500	)		(52,261	)
Semiconductor Manufacturing International Corp.		(75,000	)		(6,166	)
Shandong Weigao Group Medical Polymer Co. Ltd., Class H		(28,000	)		(16,809	)
Shenzhou International Group Holdings Ltd.		(4,000	)		(20,678	)
Shui On Land Ltd.		(194,500	)		(50,758	)
Sichuan Expressway Co. Ltd.		(32,000	)		(10,698	)
SOHO China Ltd.		(32,000	)		(16,088	)
Sunac China Holdings Ltd.		(3,000	)		(1,918	)
Want Want China Holdings Ltd.		(23,000	)		(17,641	)
West China Cement Ltd.		(262,000	)		(55,289	)
Xinyi Solar Holdings Ltd.		(908,000	)		(357,889	)
Zhuzhou CSR Times Electric Co. Ltd.		(2,000	)		(11,379	)
					(1,123,366	)
Czech Republic
CEZ		(2,748	)		(53,665	)
Hong Kong
Alibaba Pictures Group Ltd.		(120,000	)		(28,034	)
Brilliance China Automotive Holdings Ltd.		(28,000	)		(27,618	)
China Everbright International Ltd.		(1,000	)		(1,119	)
China Mengniu Dairy Co. Ltd.		(43,000	)		(72,718	)
China Merchants Holdings International Co. Ltd.		(2,000	)		(5,932	)
China Resources Gas Group Ltd.		(4,000	)		(11,319	)
China Travel International Investment Hong Kong Ltd.		(42,000	)		(12,241	)
CITIC Ltd.		(2,000	)		(2,917	)
COSCO Pacific Ltd.		(40,000	)		(42,537	)
Far East Horizon Ltd.		(30,000	)		(23,813	)
Hopewell Highway Infrastructure Ltd.		(5,000	)		(2,492	)
Kunlun Energy Co. Ltd.		(28,000	)		(24,307	)

	Shares			Value
Reference Entity — Short (continued)
Hong Kong (continued)
Poly Property Group Co. Ltd.		(37,000	)	$	(9,878	)
Shanghai Industrial Holdings Ltd.		(13,000	)		(29,556	)
Shenzhen International Holdings Ltd.		(61,000	)		(99,544	)
Towngas China Co. Ltd.		(8,000	)		(4,139	)
WH Group Ltd.		(84,500	)		(68,253	)
Yuexiu Property Co. Ltd.		(48,000	)		(6,968	)
					(473,385	)
Hungary
OTP Bank PLC		(9,272	)		(245,681	)
Richter Gedeon Nyrt		(7,730	)		(153,561	)
					(399,242	)
India
Larsen & Toubro Ltd. — GDR		(6,908	)		(131,812	)
Reliance Industries Ltd. — GDR		(813	)		(24,065	)
					(155,877	)
Indonesia
Tower Bersama Infrastructure Tbk PT		(39,500	)		(17,698	)
Malaysia
Gamuda BHD		(74,600	)		(90,708	)
IJM Corp. BHD		(6,200	)		(5,476	)
					(96,184	)
Russia
Magnit OJSC — GDR		(1,399	)		(48,500	)
MegaFon OAO — GDR		(6,499	)		(74,860	)
Surgutneftegas OAO — ADR		(17,083	)		(90,783	)
					(214,143	)
South Africa
Aspen Pharmacare Holdings Ltd.		(8,552	)		(201,757	)
Coronation Fund Managers Ltd.		(3,572	)		(18,558	)
Discovery Holdings Ltd.		(4,532	)		(40,562	)
Foschini Group Ltd.		(2,910	)		(31,261	)
Impala Platinum Holdings Ltd.		(1,742	)		(7,254	)
Life Healthcare Group Holdings Ltd.		(98,765	)		(259,090	)
Nampak Ltd.		(84,295	)		(144,181	)
Rand Merchant Insurance Holdings Ltd.		(4,944	)		(14,805	)
Resilient REIT Ltd.		(21,004	)		(200,675	)
RMB Holdings Ltd.		(3,167	)		(12,948	)
Woolworths Holdings Ltd.		(34,110	)		(219,644	)
					(1,150,735	)
South Korea
Cheil Worldwide, Inc.		(275	)		(4,043	)
CJ Corp.		(199	)		(37,244	)
Daelim Industrial Co. Ltd.		(26	)		(2,058	)
Daewoo International Corp.		(382	)		(8,263	)
Daewoo Securities Co. Ltd.		(3,204	)		(23,059	)
Dongbu Insurance Co. Ltd.		(612	)		(37,513	)
Doosan Heavy Industries & Construction Co. Ltd.		(1,237	)		(28,161	)
Hankook Tire Co. Ltd.		(5,610	)		(260,940	)
Hanwha Chemical Corp.		(7,295	)		(159,748	)
Hanwha Life Insurance Co. Ltd.		(5,254	)		(30,744	)
Hyundai Department Store Co. Ltd.		(764	)		(98,585	)
Hyundai Glovis Co. Ltd.		(357	)		(59,339	)
Hyundai Marine & Fire Insurance Co. Ltd.		(381	)		(10,605	)
KB Insurance Co. Ltd.		(1,425	)		(38,688	)

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 21

Consolidated Schedule of Investments (continued)

	Shares			Value
Reference Entity — Short (continued)
South Korea (continued)
KCC Corp.		(139	)	$	(51,685	)
Korea Aerospace Industries Ltd.		(2,479	)		(146,839	)
LG Chem Ltd.		(166	)		(43,059	)
LG Corp.		(189	)		(11,264	)
Lotte Chilsung Beverage Co. Ltd.		(4	)		(6,913	)
NCSoft Corp.		(880	)		(176,341	)
Samsung Electro-Mechanics Co. Ltd.		(9,357	)		(425,938	)
Samsung Electronics Co. Ltd. — GDR		(338	)		(184,568	)
Samsung Fire & Marine Insurance Co. Ltd.		(457	)		(117,807	)
Samsung Life Insurance Co. Ltd.		(2,551	)		(244,723	)
Samsung SDI Co. Ltd.		(3,763	)		(374,755	)
Samsung Securities Co. Ltd.		(844	)		(28,986	)
SK Holdings Co. Ltd.		(30	)		(5,880	)
					(2,617,748	)
Taiwan
Asustek Computer, Inc.		(10,000	)		(87,664	)
Compal Electronics, Inc.		(75,000	)		(44,024	)
Delta Electronics, Inc.		(51,573	)		(238,893	)
Far Eastern New Century Corp.		(5,000	)		(3,734	)
Largan Precision Co. Ltd.		(2,000	)		(139,608	)
President Chain Store Corp.		(3,000	)		(21,211	)
Quanta Computer, Inc.		(28,000	)		(45,006	)
Shin Kong Financial Holding Co. Ltd.		(361,000	)		(72,859	)
Wistron Corp.		(705,539	)		(416,508	)
					(1,069,507	)

	Shares			Value
Reference Entity — Short (continued)
Thailand
Advanced Info Service PCL		(15,200	)	$	(67,885	)
Bangkok Dusit Medical Services PCL		(238,800	)		(162,710	)
BTS Group Holdings PCL		(35,500	)		(9,350	)
CP ALL PCL		(415,500	)		(544,206	)
Krung Thai Bank PCL		(405,500	)		(203,156	)
PTT PCL		(68,300	)		(594,423	)
Siam Commercial Bank PCL		(2,100	)		(8,026	)
					(1,589,756	)
Turkey
Emlak Konut Gayrimenkul Yatirim Ortakligi		(448,841	)		(482,378	)
Gubre Fabrikalari TAS		(17,393	)		(35,545	)
Haci Omer Sabanci Holding		(7,553	)		(27,249	)
Tofas Turk Otomobil Fabrikasi		(1,339	)		(10,593	)
Tupras Turkiye Petrol Rafinerileri AS		(2,306	)		(60,822	)
Turkiye Garanti Bankasi AS		(12,310	)		(37,894	)
					(654,481	)
Total Reference Entity — Short					(10,391,344	)
Net Value of Reference Entity — UBS AG					14,476,834

Derivative Financial Instruments Categorized by Risk Exposure

As of period end, the fair values of derivative financial instruments located in the Consolidated Statement of Assets and Liabilities were as follows:

Assets — Derivative Financial Instruments		Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Forward foreign currency exchange contracts	Unrealized appreciation on forward foreign currency exchange contracts		—		—		—	$	12,082		—		—	$	12,082
Swaps — OTC	Unrealized appreciation on OTC swaps		—		—	$	1,681,826		—	$	25,208		—		1,707,034
Total			—			$	1,681,826	$	12,082	$	25,208		—	$	1,719,116
Liabilities — Derivative Financial Instruments
Futures contracts	Net unrealized depreciation1		—		—	$	13,416		—		—		—	$	13,416
Forward foreign currency exchange contracts	Unrealized depreciation on forward foreign currency exchange contracts		—		—		—	$	328,995		—		—		328,995
Swaps — OTC	Unrealized depreciation on OTC swaps		—		—		1,389,330		—	$	12,472		—		1,401,802
Total			—		—	$	1,402,746	$	328,995	$	12,472		—	$	1,744,213
1    Includes cumulative appreciation (depreciation) on futures contracts, if any, as reported in the Consolidated Schedule of Investments. Only current day’s variation margin is reported within the Consolidated Statement of Assets and Liabilities.

See Notes to Consolidated Financial Statements.

22 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (continued)

For the six months ended April 30, 2016, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:

Net Realized Gain (Loss) from:	Commodity Contracts		Credit Contracts		Equity Contracts			Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts		Total
Futures contracts		—		—	$	(190,724	)		—			—			—	$	(190,724	)
Forward foreign currency exchange contracts		—		—		—		$	182,105			—			—		182,105
Swaps		—		—		(17,108,402	)		—		$	150,261			—		(16,958,141	)
Total		—		—	$	(17,299,126	)	$	182,105		$	150,261			—	$	(16,966,760	)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—	$	74,069			—			—			—	$	74,069
Forward foreign currency exchange contracts		—		—		—		$	(372,082	)		—			—		(372,082	)
Swaps		—				2,757,726			—		$	(26,451	)		—		2,731,275
Total		—		—	$	2,831,795		$	(372,082	)	$	(26,451	)		—	$	2,433,262

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	2,424,630
Foreign currency exchange contracts:
Average amounts purchased — in USD	$	3,353,820
Average amounts sold — in USD	$	2,410,412
Interest rate swaps:
Average notional value — receives fixed rate	$	7,904,175
Total return swaps:
Average notional value	$	32,433,142

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts		—	$	5,338
Forward foreign currency exchange contracts	$	12,082		328,995
Swaps — OTC1		1,707,034		1,401,802
Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities	$	1,719,116	$	1,736,135
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		—		(5,338	)
Total derivative assets and liabilities subject to an MNA	$	1,719,116	$	1,730,797
1    Includes unrealized appreciation (depreciation) on OTC swaps and swap premiums paid/received in the Consolidated Statement of Assets and Liabilities.

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 23

Consolidated Schedule of Investments (continued)

The following table presents 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 Offset1			Non-cash Collateral Received		Cash Collateral Received			Net Amount of Derivative Assets2
Bank of America N.A.	$	8,642	$	(219	)		—		—		$	8,423
Barclays Bank PLC		12,082		—			—		—			12,082
BNP Paribas S.A.		3,607		(3,607	)		—		—			—
Goldman Sachs & Co.		1,681,826		—			—	$	(1,400,000	)		281,826
JPMorgan Chase Bank N.A.		12,959		(12,253	)		—		—			706
Total	$	1,719,116	$	(16,079	)		—	$	(1,400,000	)	$	303,037
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset1			Non-cash Collateral Pledged		Cash Collateral Pledged			Net Amount of Derivative Liabilities3
Bank of America N.A.	$	219	$	(219	)		—		—			—
BNP Paribas S.A.		109,402		(3,607	)		—		—		$	105,795
Credit Suisse International		93,415		—			—		—			93,415
Goldman Sachs International		50,723		—			—		—			50,723
HSBC Bank PLC		15,316		—			—		—			15,316
JPMorgan Chase Bank N.A.		12,253		(12,253	)		—		—			—
Morgan Stanley & Co. International PLC		7,738		—			—		—			7,738
Royal Bank of Scotland PLC		52,401		—			—		—			52,401
UBS AG		1,389,330		—			—	$	(1,158,729	)		230,601
Total	$	1,730,797	$	(16,079	)		—	$	(1,158,729	)	$	555,989
1    The amount of derivatives available for offset is limited to the amount of derivative assets and/or liabilities that are subject to an MNA.
2    Net amount represents the net amount receivable from the counterparty in the event of default.
3    Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Corporate Bonds		—		$	6,066,324			—	$	6,066,324
Foreign Agency Obligations		—			3,088,526			—		3,088,526
Foreign Government Obligations		—			26,425,244			—		26,425,244
Investment Companies	$	2,930,294			—			—		2,930,294
Short-Term Securities		18,524,038			—			—		18,524,038
Total	$	21,454,332		$	35,580,094			—	$	57,034,426
Derivative Financial Instruments1
Assets:
Equity contracts		—		$	1,681,826			—	$	1,681,826
Foreign currency exchange contracts		—			12,082			—		12,082
Interest rate contracts		—			25,208			—		25,208
Liabilities:
Equity contracts	$	(13,416	)		(1,389,330	)		—		(1,402,746	)
Foreign currency exchange contracts		—			(328,995	)		—		(328,995	)
Interest rate contracts		—			(12,472	)		—		(12,472	)
Total	$	(13,416	)	$	(11,681	)		—	$	(25,097	)
1    Derivative financial instruments are swaps futures contracts and foreign currency exchange contracts. Swaps, futures contracts and foreign currency enchange contracts are valued at the unrealized appreciation (depreciation) of the instrument.

See Notes to Consolidated Financial Statements.

24 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Consolidated Schedule of Investments (concluded)

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount for financial statement purposes. As of period end, such assets and/or liabilities are categorized within the disclosure hierarchy as follows:
	Level 1		Level 2			Level 3		Total
Assets:
Cash	$	33,960		—			—	$	33,960
Cash pledged as collateral for OTC derivatives		1,158,729		—			—		1,158,729
Cash pledged for futures contracts		104,480		—			—		104,480
Foreign currency at value		3,913		—			—		3,913
Liabilities:
Cash received as collateral for OTC derivatives		—	$	(1,400,000	)		—		(1,400,000	)
Total	$	1,301,082	$	(1,400,000	)		—	$	(98,918	)

During the six months ended April 30, 2016, there were no transfers between levels.

See Notes to Consolidated Financial Statements.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 25

Consolidated Statement of Assets and Liabilities

April 30, 2016 (Unaudited)
Assets
Investments at value — unaffiliated (cost — $34,912,567)	$	35,580,094
Investments at value — affiliated (cost — $21,489,804)		21,454,332
Cash		33,960
Cash pledged:
Futures contracts		104,480
OTC derivatives		1,158,729
Foreign currency at value (cost $3,994)		3,913
Receivables:
Interest		521,912
Dividend — affiliated		19,752
Capital shares sold		52,703
Unrealized appreciation on:
Forward foreign currency exchange contracts		12,082
OTC swaps		1,707,034
Prepaid expenses		33,725
Total assets		60,682,716
Liabilities
Cash received as collateral for OTC derivatives		1,400,000
Payables:
Investment advisory fees		27,839
Capital shares redeemed		51,162
Administration fees		2,927
Service and distribution fees		908
Officer’s & Trustees’ fees		197
Other accrued expenses		179,678
Variation margin on futures contracts		5,338
Unrealized depreciation on:
Forward foreign currency exchange contracts		328,995
OTC swaps		1,401,802
Total liabilities		3,398,846
Net Assets	$	57,283,870
Net Assets Consist of
Paid-in capital	$	63,037,365
Undistributed net investment income		305,659
Accumulated net realized loss		(6,668,365	)
Net unrealized appreciation (depreciation)		609,211
Net Assets	$	57,283,870
Net Asset Value
Institutional — Based on net assets of $54,693,612 and 6,118,669 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	8.94
Investor A — Based on net assets of $1,716,487 and 192,686 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	8.91
Investor C — Based on net assets of $873,771 and 98,403 shares outstanding, unlimited number of shares authorized, $0.001 par value	$	8.88

See Notes to Consolidated Financial Statements.
26	BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO	APRIL 30, 2016

Consolidated Statement of Operations

Six Months Ended April 30, 2016 (Unaudited)
Investment Income
Interest	$	822,475
Dividends — affiliated		80,928
Foreign taxes withheld		(564	)
Total income		902,839
Expenses
Investment advisory		267,325
Administration		11,361
Administration — class specific		5,347
Service and distribution — class specific		5,920
Transfer agent — class specific		7,154
Professional		68,095
Accounting Services		42,886
Pricing		31,617
Registration		19,760
Printing		18,366
Custodian		4,883
Officer and Trustees		3,504
Miscellaneous		7,519
Total expenses		493,737
Less:
Fees waived by the Manager		(100,648	)
Administration fees waived — class specific		(5,250	)
Transfer agent fees waived and/or reimbursed — class specific		(7,154	)
Fees paid indirectly		(128	)
Total expenses after fees waived and/or reimbursed and paid indirectly		380,557
Net investment income		522,282
Realized and Unrealized Gain (Loss)
Net realized gain (loss) from:
Investments — unaffiliated		14,242,427
Investments — affiliated		(149,908	)
Futures contracts		(190,724	)
Foreign currency transactions		165,045
Swaps		(16,958,141	)
		(2,891,301	)
Net change in unrealized appreciation (depreciation) on:
Investments — unaffiliated		1,659,027
Investments — affiliated		178,228
Futures contracts		74,069
Foreign currency translations		(369,720	)
Swaps		2,731,275
		4,272,879
Total realized and unrealized gain		1,381,578
Net Increase in Net Assets Resulting from Operations	$	1,903,860

See Notes to Consolidated Financial Statements.
	BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO	APRIL 30, 2016	27

Consolidated Statements of Changes in Net Assets

Increase (Decrease) in Net Assets:	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015
Operations
Net investment income	$	522,282		$	632,570
Net realized loss		(2,891,301	)		(2,650,442	)
Net change in unrealized appreciation (depreciation)		4,272,879			(5,121,983	)
Net increase (decrease) in net assets resulting from operations		1,903,860			(7,139,855	)
Distributions to Shareholders1
From net investment income:
Institutional		(656,002	)		(336,028	)
Investor A		(19,525	)		(3,973	)
Decrease in net assets resulting from distributions to shareholders		(675,527	)		(340,001	)
Capital Share Transactions
Net increase (decrease) in net assets derived from capital share transactions		(996,377	)		9,872,790
Net Assets
Total increase in net assets		231,956			2,392,934
Beginning of period		57,051,914			54,658,980
End of period	$	57,283,870		$	57,051,914
Undistributed net investment income, end of period	$	305,659		$	458,904

¹    Distributions for annual periods determined in accordance with federal income tax regulations.

See Notes to Consolidated Financial Statements.
28	BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO	APRIL 30, 2016

Consolidated Financial Highlights

	Institutional
	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31,						Period May 16, 20131 to October 31, 2013
				2015			2014
Per Share Operating Performance
Net asset value, beginning of period	$	8.70		$	9.84		$	9.53		$	10.00
Net investment income2		0.08			0.11			0.05			0.05
Net realized and unrealized gain (loss)		0.26			(1.19	)		0.34			(0.52	)
Net increase (decrease) from investment operations		0.34			(1.08	)		0.39			(0.47	)
Distributions from net investment income3		(0.10	)		(0.06	)		(0.08	)		—
Net asset value, end of period	$	8.94		$	8.70		$	9.84		$	9.53
Total Return4
Based on net asset value		4.08%	5		(10.97)%			4.18%			(4.70)%	5
Ratios to Average Net Assets6
Total expenses		1.82%	7		1.74%			2.01%			1.92%	7,8
Total expenses after fees waived and/or reimbursed and paid indirectly		1.40%	7		1.40%			1.40%			1.40%	7
Net investment income		1.98%	7		1.15%			0.56%			1.08%	7
Supplemental Data
Net assets, end of period (000)	$	54,694		$	54,526		$	51,671		$	48,532
Portfolio turnover rate9		27%			34%			37%			12%

¹  Commencement of operations.

²  Based on average shares outstanding.

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

⁴  Where applicable, assumes the reinvestment of distributions.

⁵  Aggregate total return.

⁶  Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.10% for the six months ended April 30, 2016, 0.11% for the year ended October 31, 2015 and 0.12% for the year ended October 31, 2014 and period ended October 31, 2013.

⁷  Annualized.

⁸  Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.97%.

⁹  Excludes investments underlying the total return swaps.

See Notes to Consolidated Financial Statements.
	BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO	APRIL 30, 2016	29

Consolidated Financial Highlights (continued)

	Investor A
	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31,						Period May 16, 20131 to October  31, 2013
				2015			2014
Per Share Operating Performance
Net asset value, beginning of period	$	8.67		$	9.81		$	9.52		$	10.00
Net investment income2		0.07			0.10			0.02			0.04
Net realized and unrealized gain (loss)		0.26			(1.19	)		0.35			(0.52	)
Net increase (decrease) from investment operations		0.33			(1.09	)		0.37			(0.48	)
Distributions from net investment income3		(0.09	)		(0.05	)		(0.08	)		—
Net asset value, end of period	$	8.91		$	8.67		$	9.81		$	9.52
Total Return4
Based on net asset value		3.88%	5		(11.15)%			3.90%			(4.80)%	5
Ratios to Average Net Assets6
Total expenses		2.26%	7		2.15%			2.54%			2.63%	7,8
Total expenses after fees waived and/or reimbursed and paid indirectly		1.65%	7		1.65%			1.65%			1.65%	7
Net investment income		1.74%	7		1.02%			0.23%			0.82%	7
Supplemental Data
Net assets, end of period (000)	$	1,716		$	1,628		$	698		$	71
Portfolio turnover rate9		27%			34%			37%			12%

¹  Commencement of operations.

²  Based on average shares outstanding.

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

⁴  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.

⁵  Aggregate total return.

⁶  Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.10% for the six months ended April 30, 2016, 0.11% for the year ended October 31, 2015 and 0.12% for the year ended October 31, 2014 and period ended October 31, 2013.

⁷  Annualized.

⁸  Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 2.66%.

⁹  Excludes investments underlying the total return swaps.

See Notes to Consolidated Financial Statements.
30	BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO	APRIL 30, 2016

Consolidated Financial Highlights (concluded)

	Investor C
	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31,						Period May 16, 20131 to October  31, 2013
				2015			2014
Per Share Operating Performance
Net asset value, beginning of period	$	8.58		$	9.73		$	9.49		$	10.00
Net investment income (loss)2		0.04			(0.01	)		(0.05	)		0.00	3
Net realized and unrealized gain (loss)		0.26			(1.14	)		0.34			(0.51	)
Net increase (decrease) from investment operations		0.30			(1.15	)		0.29			(0.51	)
Distributions from net investment income4		—			—			(0.05	)		—
Net asset value, end of period	$	8.88		$	8.58		$	9.73		$	9.49
Total Return5
Based on net asset value		3.50%	6		(11.82)%			3.14%			(5.10)%	6
Ratios to Average Net Assets7
Total expenses		2.99%	8		2.91%			3.25%			3.43%	8,9
Total expenses after fees waived and/or reimbursed and paid indirectly		2.40%	8		2.40%			2.40%			2.40%	8
Net investment income (loss)		0.99%	8		(0.10)%			(0.57)%			0.06%	8
Supplemental Data
Net assets, end of period (000)	$	874		$	898		$	2,290		$	71
Portfolio turnover rate10		27%			34%			37%			12%

¹  Commencement of operations.

²  Based on average shares outstanding.

³  Amount is less than $0.005 per share.

⁴  Distributions for annual periods are determined in accordance with federal income tax regulations.

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

⁶  Aggregate total return.

⁷  Ratios do not include expenses incurred indirectly as a result of investments in underlying funds of approximately 0.10% for the six months ended April 30, 2016, 0.11% for the year ended October 31, 2015 and 0.12% for the year ended October 31, 2014 and period ended October 31, 2013.

⁸  Annualized.

⁹  Organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 3.47%.

¹⁰ Excludes investments underlying the total return swaps.

See Notes to Consolidated Financial Statements.
	BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO	APRIL 30, 2016	31

Notes to Consolidated Financial Statements (Unaudited)

1. Organization:

BlackRock Funds^SM (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. BlackRock Emerging Market Allocation Portfolio (the “Fund”) is a series of the Trust. The Fund is classified as non-diversified under the 1940 Act.

The Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional Shares are sold only to certain eligible investors. Investor A and Investor C Shares are generally available through financial intermediaries. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures.

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

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

Basis of Consolidation: The accompanying consolidated financial statements of the Fund include the accounts of BlackRock Cayman Emerging Market Allocation Fund, Ltd. (the “Subsidiary”), which is a wholly-owned subsidiary of the Fund and primarily invests in commodity-related instruments. The Subsidiary enables the Fund to hold these commodity-related instruments and satisfy regulated investment company tax requirements. The Fund may invest up to 25% of its total assets in the Subsidiary. Intercompany accounts and transactions, if any, have been eliminated. During the six months ended April 30, 2016, there were no transactions in the Subsidiary. The Subsidiary is subject to the same investment policies and restrictions that apply to the Fund, except that the Subsidiary may invest without limitation in commodity-related instruments.

The Fund, together with certain other registered investment companies advised by the Manager or its affiliates, is included in a complex of open-end funds referred to as the Equity-Liquidity Complex.

2. Significant Accounting Policies:

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

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

The Fund does not isolate changes in the exchange rates from the changes in the market prices of investments held or sold for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the Consolidated Statement of Operations from the effects of changes in market prices of those investments, but are included as a component of net realized and unrealized gain (loss) from investments. The Fund reports realized currency gains (losses) on foreign currency related transactions as components of net realized gain (loss) for financial reporting purposes, whereas such components are generally treated as ordinary income for federal income tax purposes.

Segregation and Collateralization: In cases where the Fund enters into certain investments (e.g., futures contracts, forward foreign currency exchange contracts and swaps) that would be treated as “senior securities” for 1940 Act purposes, the Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments. Doing so allows the investment to be excluded from treatment as a “senior security.” Furthermore, if required by an exchange or counterparty agreement, the Fund may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments or obligations.

Investment Transactions and Investment Income: For financial reporting purposes, investment transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on investment transactions are determined on the identified cost basis. Interest income,

32 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Notes to Consolidated Financial Statements (continued)

including amortization and accretion of premiums and discounts on debt securities, is recognized on the accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Distributions: Distributions paid by the Fund are recorded on the ex-dividend date. The character and timing of distributions are determined in accordance with federal income tax regulations, which may differ from U.S. GAAP.

Net income and realized gains from investments held by the Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Subsidiary in any taxable year, the loss will generally not be available to offset the Fund’s ordinary income and/or capital gains for that year.

Indemnifications: In the normal course of business, the Fund enters into contracts that contain a variety of representations that provide general indemnification. The Fund’s maximum exposure under these arrangements is unknown because it involves future potential claims against the Fund, which cannot be predicted with any certainty.

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

The Fund has an arrangement with its custodian whereby fees may be reduced by credits earned on uninvested cash balances, which, if applicable, are shown as fees paid indirectly in the Consolidated Statement of Operations. The custodian imposes fees on overdrawn cash balances, which can be offset by accumulated credits earned or may result in additional custody charges. Effective October 2015, the custodian is imposing fees on certain uninvested cash balances.

3. Investment Valuation and Fair Value Measurements:

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) as of the close of trading on the New York Stock Exchange (“NYSE”) (generally 4:00 p.m., Eastern time) (or if the reporting date falls on a day the NYSE is closed, investments are valued at fair value as of the report date). U.S. GAAP defines fair value as the price the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under policies approved by the Board of Trustees of the Trust (the “Board”). The BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) is the committee formed by management to develop global pricing policies and procedures and to oversee the pricing function for all financial instruments.

Fair Value Inputs and Methodologies: The following methods (or “techniques”) and inputs are used to establish the fair value of the Fund’s assets and liabilities:

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

• Bond investments are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services. Floating rate loan interests are valued at the mean of the bid prices from one or more brokers or dealers as obtained from a pricing service. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measures. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche-specific spread to the benchmark yield based on the unique attributes of the tranche.

• Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of business on the NYSE. Occasionally, events affecting the values of such instruments may occur between the foreign market close and the close of business on the NYSE that may not be reflected in the computation of the Fund’s net assets. Each business day, the Fund uses a pricing service to assist with the valuation of certain foreign exchange-traded equity securities and foreign exchange-traded over-the-counter (“OTC”) options (the “Systematic Fair Value Price”). Using current market factors, the Systematic Fair Value Price is designed to value such foreign securities and foreign options at fair value as of the close of business on the NYSE, which follows the close of the local markets.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 33

Notes to Consolidated Financial Statements (continued)

• Investments in open-end U.S. mutual funds are valued at NAV each business day.

• Futures contracts traded on exchanges are valued at their last sale price.

• Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of business on the NYSE. Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of business on the NYSE. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

• Swap agreements are valued utilizing quotes received daily by the Fund’s pricing service or through brokers, which are derived using daily swap curves and models that incorporate a number of market data factors, such as discounted cash flows, trades and values of the underlying reference instruments.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such instruments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that the Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Global Valuation Committee, or its delegate, deems relevant consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

Fair Value Hierarchy: Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial statement purposes as follows:

• Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

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

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. The significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments are typically categorized as Level 3. The fair value hierarchy for the Fund’s investments and derivative financial instruments have been included in the Consolidated Schedule of Investments.

Changes in valuation techniques may result in transfers into or out of an assigned level within the hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. Derivative Financial Instruments:

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as equity risk, interest rate risk and foreign currency exchange rate risk. Derivative financial instruments categorized by risk exposure are included in the Consolidated Schedule of Investments. These contracts may be transacted on an exchange or OTC.

Futures Contracts: The Fund invests in long and/or short positions in futures and options on futures contracts to gain exposure to, or manage exposure to changes in the value of equity securities (equity risk).

34 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Notes to Consolidated Financial Statements (continued)

Futures contracts are agreements between the Fund and a counterparty to buy or sell a specific quantity of an underlying instrument at a specified price and on a specified date. Depending on the terms of a contract, it is settled either through physical delivery of the underlying instrument on the settlement date or by payment of a cash amount on the settlement date. Upon entering into a futures contract, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on a contract’s size and risk profile. The initial margin deposit must then be maintained at an established level over the life of the contract.

Securities deposited as initial margin are designated in the Consolidated Schedule of Investments and cash deposited, if any, is shown as cash pledged for futures contracts in the Consolidated Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and, if any, shown as variation margin receivable (or payable) on futures contracts in the Consolidated Statement of Assets and Liabilities. When the contract is closed, a realized gain or loss is recorded in the Consolidated Statement of Operations equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. The use of futures contracts involves the risk of an imperfect correlation in the movements in the price of futures contracts and interest, foreign currency exchange rates or underlying assets.

Forward Foreign Currency Exchange Contracts: The Fund enters into forward foreign currency exchange contracts 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 Fund are denominated and in some cases, may be used to obtain exposure to a particular market.

The daily change in market value is recorded as unrealized appreciation (depreciation) in the Consolidated Statement of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Consolidated Statement 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 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.

Swaps: The Fund enters into swap contracts to manage exposure to issuers, markets and securities. Such contracts are agreements between the Fund and a counterparty to make periodic net payments on a specified notional amount or a net payment upon termination. Swap agreements are privately negotiated in the OTC market and may be entered into as a bilateral contract (“OTC swaps”) or centrally cleared (“centrally cleared swaps”).

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the Consolidated Statement of Assets and Liabilities and amortized over the term of the contract. The daily fluctuation in market value is recorded as unrealized appreciation (depreciation) on OTC Swaps in the Consolidated Statement of Assets and Liabilities. Payments received or paid are recorded in the Consolidated Statement of Operations as realized gains or losses, respectively. When an OTC swap is terminated, a realized gain or loss is recorded in the Consolidated Statement of Operations equal to the difference between the proceeds from (or cost of) the closing transaction and the Fund’s basis in the contract, if any. Generally, the basis of the contract is the premium received or paid.

• Total return swaps — The Fund enters into total return swaps to obtain exposure to a portfolio of long and short securities without owning such securities.

Under the terms of a contract, the swap is designed to function as a portfolio of direct investments in long and short equity positions. This means that the Fund has the ability to trade in and out of these long and short positions within the swap and will receive the economic benefits and risks equivalent to direct investment in these positions, subject to certain adjustments due to events related to the counterparty and its hedge. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid, all of which are reflected in the swap’s market value. The market value also includes interest charges and credits (“financing fees”) related to the notional values of the long and short positions and cash balances within the swap. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread determined based upon the country and/or currency of the positions in the portfolio.

Positions within the swap and financing fees are reset periodically. During a reset, any unrealized appreciation (depreciation) on positions and accrued financing fees become available for cash settlement between the Fund and the counterparty. The amounts that are available for cash settlement are recorded as realized gains or losses in the Consolidated Statement of Operations. Cash settlement in and out of the swap may occur at a reset date or any other date, at the discretion of the Fund and the counterparty, over the life of the agreement. Certain swaps have no stated expiration and can be terminated by either party at any time.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 35

Notes to Consolidated Financial Statements (continued)

• Interest rate swaps — The Fund enters into interest rate swaps to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate risk (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.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its counterparties. An ISDA Master Agreement is a bilateral agreement between the 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, the 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. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events. In addition, certain ISDA Master Agreements allow counterparties to terminate derivative contracts prior to maturity in the event the Fund’s net assets decline by a stated percentage or the Fund fails to meet the terms of its ISDA Master Agreements. The result would cause the Fund to accelerate payment of any net liability owed to the counterparty.

Collateral Requirements: For derivatives traded under an ISDA Master Agreement, the collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of any collateral currently pledged by the Fund and the counterparty.

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately on the Consolidated Statement of Assets and Liabilities as cash pledged as collateral and cash received as collateral, respectively. Non-cash collateral pledged by the Fund, if any, is noted in the Consolidated Schedule of Investments. Generally, the amount of collateral due from or to a counterparty is subject to a certain minimum transfer amount threshold before a transfer is required, which is determined at the close of business of the Fund. Any additional required collateral is delivered to/pledged by the Fund on the next business day. Typically, the counterparty is not permitted to sell, re-pledge or use cash and non-cash collateral it receives. The Fund generally agrees not to use non-cash collateral that it receives but may, absent default or certain other circumstances defined in the underlying ISDA Master Agreement, be permitted to use cash collateral received. In such cases, interest may be paid pursuant to the collateral arrangement with the counterparty. To the extent amounts due to the Fund from its counterparties are not fully collateralized, it bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, it bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

For financial reporting purposes, the Fund does not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Consolidated Statement of Assets and Liabilities.

5. Investment Advisory Agreement and Other Transactions with Affiliates:

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

Investment Advisory Fees

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

Average Daily Net Assets	Investment Advisory Fee
First $1 Billion		1.00%
$1 Billion — $3 Billion		0.94%
$3 Billion — $5 Billion		0.90%
$5 Billion — $10 Billion		0.87%
Greater than $10 Billion		0.85%

36 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Notes to Consolidated Financial Statements (continued)

The Manager provides investment management and other services to the Subsidiary. The Manager does not receive separate compensation from the Subsidiary for providing investment management or administrative services. However, the Fund pays the Manager based on the Fund’s net assets, plus the proceeds of any debt securities or outstanding borrowings used for leverage, which includes the assets of the Subsidiary.

The Manager, with respect to the Fund, entered into separate sub-advisory agreements with BlackRock International Limited, BlackRock Asset Management North Asia Limited and BlackRock (Singapore) Limited (collectively, the “Sub-Advisors”), each an affiliate of the Manager. The Manager pays the Sub-Advisors for services they provide a monthly fee that is a percentage of the investment advisory fees paid by the Fund to the Manager.

Service and Distribution Fees

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

	Investor A		Investor C
Service Fee		0.25%		0.25%
Distribution Fee		—		0.75%

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

For the six months ended April 30, 2016, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

Investor A	Investor C		Total
$1,948	$	3,972	$	5,920

Administration

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

Average Daily Net Assets	Administration Fee
First $500 Million		0.0425%
$500 Million — $1 Billion		0.0400%
$1 Billion — $2 Billion		0.0375%
$2 Billion — $4 Billion		0.0350%
$4 Billion — $13 Billion		0.0325%
Greater than $13 Billion		0.0300%

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

For the six months ended April 30, 2016, the following table shows the class specific administration fees borne directly by each class of the Fund:

Institutional	Investor A		Investor C		Total
$5,111	$	156	$	80	$	5,347

Transfer Agent

Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to sub-accounts they service. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets.

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 37

Notes to Consolidated Financial Statements (continued)

For the six months ended April 30, 2016, the following table shows the class specific transfer agent fees borne directly by each class of the Fund:

Institutional	Investor A		Investor C		Total
$4,733	$	1,663	$	758	$	7,154

Other Fees

For the six months ended April 30, 2016, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares, which totaled $537.

For the six months ended April 30, 2016, affiliates received CDSCs of $934 for the Fund’s Investor C Shares.

Expense Limitations, Waivers, Reimbursements and Recoupments

The Manager, with respect to the Fund, 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 the Fund’s business. The current expense limitations as a percentage of average daily net assets are as follows:

	Expense Limitation
Institutional		1.40%
Investor A		1.65%
Investor C		2.40%

For the six months ended April 30, 2016, the Manager waived $80,972 which is included in fees waived by the Manager in the Consolidated Statement of Operations.

The Manager has agreed not to reduce or discontinue these contractual expense limitations prior to March 1, 2017, unless approved by the Board, including a majority of the Independent Trustees or by the vote of a majority of the outstanding voting securities of the Fund.

The Manager, with respect to the Fund, voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds. This amount is included in fees waived by the Manager in the Consolidated Statement of Operations. However, the Manager does not waive its investment advisory fees by the amount of investment advisory fees paid in connection with the Fund’s investments in other affiliated investment companies, if any. For the six months ended April 30, 2016, the Fund waived $13,949.

In addition, the Manager has contractually agreed to waive the management fee on assets estimated to be attributed to the Fund’s investments in other equity and fixed income mutual funds managed by BlackRock or its affiliates. This amount is included in fees waived by the Manager in the Consolidated Statement of Operations. For the six months ended April 30, 2016, the amount waived was $5,727.

For the six months ended April 30, 2016, the amounts included in administration fees waived – class specific in the Consolidated Statement of Operations:

Institutional	Investor A		Investor C		Total
$5,019	$	153	$	78	$	5,250

The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing subscriptions and redemptions based upon instructions from shareholders. For the six months ended April 30, 2016, the Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Consolidated Statement of Operations:

Institutional	Investor A		Investor C		Total
$150	$	152	$	27	$	329

For the six months ended April 30, 2016, the amounts included in transfer agent fees waived and/or reimbursed– class specific in the Consolidated Statement of Operations:

Institutional	Investor A		Investor C		Total
$4,733	$	1,663	$	758	$	7,154

38 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Notes to Consolidated Financial Statements (continued)

If during the 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 expense limit for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of the following expenses:

(a) The amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement.

(b) The amount by which the expense limit for that share class exceeds the operating expenses of the share class for the current fiscal year, provided that:

• The Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year.

• The Manager or an affiliate continues to serve as the Fund’s investment advisor or administrator.

In the event the expense limit for a share class is changed subsequent to a fiscal year in which the Manager becomes entitled to reimbursement for fees waived and/or reimbursed, the amount available to reimburse the Manager shall be calculated by reference to the expense limit for that share class in effect at the time the Manager became entitled to receive such reimbursement, rather than the subsequently changed expense limit for that share class.

On April 30, 2016, the Fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring October 31,
	2016		2017		2018
Fund level	$	276,538	$	133,450	$	80,972
Institutional	$	13,572	$	16,945	$	9,752
Investor A	$	873	$	2,541	$	1,816
Investor C	$	2,361	$	3,337	$	836

Officers and Trustees

Certain officers and/or trustees of the Trust are officers and/or directors of BlackRock or its affiliates. The Fund reimburses the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Officer and Trustees in the Consolidated Statement of Operations.

6. Purchases and Sales:

For the six months ended April 30, 2016, purchases and sales of investments, excluding short-term securities, were $11,893,958 and $9,836,354, respectively.

7. Income Tax Information:

It is the Fund’s policy to comply with the requirements of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies, and to distribute substantially all of its taxable income to its shareholders. Therefore, no federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns remains open for each of the two years ended October 31, 2015 and the period ended October 31, 2013. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of April 30, 2016, inclusive of the open tax return years, and does not believe there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements.

As of October 31, 2015, the Fund had a capital loss carryforward available to offset future realized gains of $19,867, with no expiration date.

As of April 30, 2016, gross unrealized appreciation and depreciation based on cost for federal income tax purposes were as follows:

Tax cost	$	60,159,326
Gross unrealized appreciation	$	1,065,104
Gross unrealized depreciation		(4,190,004	)
Net unrealized depreciation	$	(3,124,900	)

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 39

Notes to Consolidated Financial Statements (continued)

8. Bank Borrowings:

The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.1 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.6 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 0.12% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2017 unless extended or renewed. Prior to April 21, 2016, a fee per annum was 0.06% on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. Participating Funds paid administration, legal and arrangement fees, which, if applicable, are included in miscellaneous expenses in the Consolidated Statement of Operations. 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 six months ended April 30, 2016, the Fund did not borrow under the credit agreement.

9. Principal Risks:

In the normal course of business, the Fund invests in securities and enters into transactions where risks exist due to fluctuations in the market (market risk) or failure of the issuer to meet all its obligations, including the ability to pay principal and interest when due (issuer credit risk). The value of securities held by the Fund may decline in response to certain events, including those directly involving the issuers of securities owned by the Fund. Investments in the securities of issuers domiciled in countries with emerging capital markets involve certain additional risks that do not generally apply to investments in securities of issuers in more developed capital markets, such as (i) low or nonexistent trading volume, resulting in a lack of liquidity and increased volatility in prices for such securities; (ii) uncertain national policies and social, political and economic instability, increasing the potential for expropriation of assets, confiscatory taxation, high rates of inflation or unfavorable diplomatic developments; and (iii) possible fluctuations in exchange rates, differing legal systems and the existence or possible imposition of exchange controls, custodial restrictions or other foreign or U.S. governmental laws or restrictions applicable to such investments. Changes arising from the general economy, the overall market and local, regional or global political and/or social instability, as well as currency, interest rate and price fluctuations, may also affect the securities’ value.

The Fund may be exposed to prepayment risk, which is the risk that borrowers may exercise their option to prepay principal earlier than scheduled during periods of declining interest rates, which would force the Fund to reinvest in lower yielding securities. The Fund may also be exposed to reinvestment risk, which is the risk that income from the Fund’s portfolio will decline if the Fund invests the proceeds from matured, traded or called fixed income securities at market interest rates that are below the Fund portfolio’s current earnings rate.

Counterparty Credit Risk: Similar to issuer credit risk, the Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and receivables due from counterparties. The extent of the Fund’s exposure to market, issuer and counterparty credit risks with respect to these financial assets is approximately their value recorded in the Consolidated Statement of Assets and Liabilities, less any collateral held by the Fund.

A derivative contract may suffer a mark-to-market loss if the value of the contract decreases due to an unfavorable change in the market rates or values of the underlying instrument. Losses can also occur if the counterparty does not perform under the contract.

The Fund’s risk of loss from counterparty credit risk on OTC derivatives is generally limited to the aggregate unrealized gain less the value of any collateral held by the Fund.

With exchange-traded futures, there is less counterparty credit risk to the Fund since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, the Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to

40 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Notes to Consolidated Financial Statements (continued)

segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Fund.

Concentration Risk: The Fund invests a significant portion of its assets in fixed-income securities and/or uses derivatives tied to the fixed-income markets. Changes in market interest rates or economic conditions may affect the value and/or liquidity of such investments. Interest rate risk is the risk that prices of bonds and other fixed-income securities will increase as interest rates fall and decrease as interest rates rise. The Fund may be subject to a greater risk of rising interest rates due to the current period of historically low rates.

As of period end, the Fund’s investments had the following industry classifications:

	Percent of Total Investments
Industry	Long			Short			Total
Banks		5%			2%			7%
Technology Hardware & Equipment		4			2			6
Telecommunication Services		4			1			5
Oil, Gas & Consumable Fuels		4			1			5
Food, Beverage & Tobacco		3			1			4
Internet Software & Services		2			1			3
Semiconductors & Semiconductor Equipment		2			1			3
Industrial Conglomerates		2			1			3
Metals & Mining		2			1			3
Transportation		1			1			2
Real Estate Management & Development		1			1			2
Insurance		2			—			2
Other		43	1		12	2		55
Total		75%			25%			100%

¹  Consists of Foreign Government Obligations (19%) and Investment Companies (2%) with the remainder consisting of other industries that were each 1% or less of total investments (22%).

²  All other industries held were each 1% or less of total investments.

10. Capital Share Transactions:

Transactions in capital shares for each class were as follows:

	Six Months Ended April 30, 2016						Year Ended October 31, 2015
	Shares			Amount			Shares			Amount
Institutional
Shares sold		445,402		$	3,772,410			1,449,077		$	13,792,309
Shares issued in reinvestment of distributions		11,611			94,865			899			8,237
Shares redeemed		(604,310	)		(4,919,447	)		(435,195	)		(3,856,587	)
Net increase (decrease)		(147,297	)	$	(1,052,172	)		1,014,781		$	9,943,959
Investor A
Shares sold		106,974		$	932,718			200,735		$	1,913,242
Shares issued in reinvestment of distributions		2,369			19,304			421			3,850
Shares redeemed		(104,547	)		(860,850	)		(84,482	)		(776,216	)
Net increase		4,796		$	91,172			116,674		$	1,140,876
Investor C
Shares sold		39,295		$	337,789			73,566		$	702,667
Shares issued in reinvestment of distributions		—			—			—			—
Shares redeemed		(45,516	)		(373,166	)		(204,283	)		(1,914,712	)
Net decrease		(6,221	)	$	(35,377	)		(130,717	)	$	(1,212,045	)
Total Net Increase (Decrease)		(148,722	)	$	(996,377	)		1,000,738		$	9,872,790

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 41

Notes to Consolidated Financial Statements (concluded)

At April 30, 2016, the following shares of the Fund were owned by affiliates:

Institutional	5,091,436
Investor A	2,500
Investor C	2,500

11. Subsequent Events:

Management’s evaluation of the impact of all subsequent events on the Fund’s financial statements was completed through the date the financial statements were issued and the following items were noted:

On June 13, 2016, the Board of the Fund approved a change in the name of the Fund to BlackRock Total Emerging Markets Fund effective on July 18, 2016.

42 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Officers and Trustees

Rodney D. Johnson, Chair of the Board and Trustee

David O. Beim, Trustee

Susan J. Carter, Trustee

Collette Chilton, Trustee

Neil A. Cotty, Trustee

Dr. Matina S. Horner, Trustee

Cynthia A. Montgomery, Trustee

Barbara G. Novick, Trustee

Joseph P. Platt, Trustee

Robert C. Robb, Jr., Trustee

Mark Stalnecker, Trustee

Kenneth L. Urish, Trustee

Claire A. Walton, Trustee

Frederick W. Winter, Trustee

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

Richard Hoerner, CFA, Vice President

Jennifer McGovern, Vice President

Neal J. Andrews, Chief Financial Officer

Jay M. Fife, Treasurer

Charles Park, Chief Compliance Officer

Fernanda Piedra, Anti-Money Laundering Compliance Officer

Benjamin Archibald, Secretary

Effective December 31, 2015, Herbert I. London and Toby Rosenblatt retired as Trustees of the Trust.

Effective February 5, 2016, Frank J. Fabozzi resigned as a Trustee of the Trust.

Effective February 8, 2016, Susan J. Carter, Neil A. Cotty and Claire A. Walton were elected to serve as Trustees of the Trust.

Investment Advisor and Administrator BlackRock Advisors, LLC Wilmington, DE 19809	Sub-Advisors BlackRock International Limited Edinburgh, EH3 8BL United Kingdom BlackRock Asset Management North Asia Limited Hong Kong, China BlackRock (Singapore) Limited 079912 Singapore	Transfer Agent BNY Mellon Investment Servicing (US) Inc. Wilmington, DE 19809	Distributor BlackRock Investments, LLC New York, NY 10022
Accounting Agent and Custodian State Street Bank and Trust Company Boston, MA 02110		Independent Registered Public Accounting Firm Deloitte & Touche LLP Boston, MA 02116	Legal Counsel Sidley Austin LLP New York, NY 10019
			Address of the Fund 100 Bellevue Parkway Wilmington, DE 19809

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 43

Additional Information

Proxy Results

A Special Meeting of Shareholders was held on February 8, 2016 for shareholders of record on December 11, 2015, to elect a Board of Trustees of the Trust.

		Votes For		Votes Withheld
Approved the Trustees* as follows:	David O. Beim		3,327,629,620		22,971,395
	Susan J. Carter		3,329,237,692		21,363,323
	Collette Chilton		3,329,179,365		21,421,650
	Neil A. Cotty		3,328,526,288		22,074,727
	Matina S. Horner		3,326,965,973		23,635,042
	Rodney D. Johnson		3,327,844,311		22,756,704
	Cynthia A. Montgomery		3,328,882,847		21,718,168
	Joseph P. Platt		3,327,563,553		23,037,462
	Robert C. Robb, Jr.		3,327,822,475		22,778,540
	Mark Stalnecker		3,327,691,900		22,909,115
	Kenneth L. Urish		3,324,875,151		25,725,864
	Claire A. Walton		3,329,000,010		21,601,005
	Frederick W. Winter		3,327,879,107		22,721,908
	Barbara G. Novick		3,327,607,976		22,993,039
	John M. Perlowski		3,326,473,221		24,127,794

* Denotes Trust-wide proposal and voting results.

General Information

Householding

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

Availability of Quarterly Schedule of Investments

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

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

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

BlackRock’s Mutual Fund Family

BlackRock offers a diverse lineup of open-end mutual funds crossing all investment styles and managed by experts in equity, fixed income and tax-exempt investing. Visit http://www.blackrock.com for more information.

44 BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016

Additional Information (concluded)

Shareholder Privileges

Account Information

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

Automatic Investment Plans

Investor Class shareholders who want to invest regularly can arrange to have $50 or more automatically deducted from their checking or savings account and invested in any of the BlackRock funds.

Systematic Withdrawal Plans

Investor Class shareholders can establish a systematic withdrawal plan and receive periodic payments of $50 or more from their BlackRock funds, as long as their account balance is at least $10,000.

Retirement Plans

Shareholders may make investments in conjunction with Traditional, Rollover, Roth, Coverdell, Simple IRAs, SEP IRAs and 403(b) Plans.

BlackRock Privacy Principles

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

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

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

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

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

BLACKROCK EMERGING MARKET ALLOCATION PORTFOLIO APRIL 30, 2016 45

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

EMAP-4/16-SAR

Item 2 – Code of Ethics – Not Applicable to this semi-annual report

Item 3 – Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 – Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 – Audit Committee of Listed Registrants – Not Applicable

Item 6 – Investments

(a) The registrant’s Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this Form.

(b) Not Applicable due to no such divestments during the semi-annual period covered since the previous Form N-CSR filing.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not Applicable

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 – Submission of Matters to a Vote of Security Holders –There have been no material changes to these procedures.

Item 11 – Controls and Procedures

(a) – The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by
Rule 30a-3(b) under the 1940 Act and Rule 15d-15(b) under the Securities Exchange Act of 1934, as amended.

(b) – There were no changes in the registrant’s internal control over financial reporting (as defined in
Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits attached hereto

(a)(1) – Code of Ethics – Not Applicable to this semi-annual report

(a)(2) – Certifications – Attached hereto

(a)(3) – Not Applicable

(b) – Certifications – Attached hereto

2

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BlackRock Funds

By:	/s/ John M. Perlowski
	John M. Perlowski
	Chief Executive Officer (principal executive officer) of
	BlackRock Funds

Date: July 1, 2016

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

Date: July 1, 2016

By:	/s/ Neal J. Andrews
	Neal J. Andrews
	Chief Financial Officer (principal financial officer) of
	BlackRock Funds

Date: July 1, 2016

3