N-Q 1 d701948dnq.htm BLACKROCK FUNDS BLACKROCK FUNDS

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-05742

Name of Fund: BlackRock Funds

            BlackRock China A Opportunities Fund

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 52nd Street, New York, NY 10055

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

Date of fiscal year end: 10/31/2019

Date of reporting period: 01/31/2019

Item 1 – Schedule of Investments

Schedule of Investments  (unaudited)

January 31, 2019

   

BlackRock China A Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks — 99.7%

 

China — 99.7%  

5I5J Holding Group Co. Ltd., Class A

     10,200     $ 6,562  

AECC Aero-Engine Control Co. Ltd., Class A

     14,300       26,012  

AECC Aviation Power Co. Ltd., Class A

     7,500       24,686  

Aier Eye Hospital Group Co. Ltd., Class A

     5,000       20,358  

Air China Ltd., Class A

     2,400       2,966  

Angang Steel Co. Ltd., Class A

     23,000       17,917  

Anhui Conch Cement Co. Ltd., Class A

     45,400       221,062  

Anhui Expressway Co. Ltd., Class A

     12,700       10,582  

Anhui Yingjia Distillery Co. Ltd., Class A

     67,200       145,404  

Avic Capital Co. Ltd., Class A

     105,119       68,491  

AVIC Jonhon OptronicTechnology Co. Ltd., Class A

     19,700       103,678  

AVIC Shenyang Aircraft Co. Ltd., Class A(a)

     6,000       26,461  

Bank of Communications Co. Ltd., Class A

     306,100       286,422  

Bank of Hangzhou Co. Ltd., Class A

     186,900       217,541  

Bank of Jiangsu Co. Ltd., Class A

     28,900       26,838  

Bank of Ningbo Co. Ltd., Class A

     25,900       67,700  

Bank of Shanghai Co. Ltd., Class A

     125,000       215,394  

Baoshan Iron & Steel Co. Ltd., Class A

     69,600       73,216  

Beijing Shiji Information Technology Co. Ltd., Class A

     7,700       32,141  

Beijing Shunxin Agriculture Co. Ltd., Class A

     2,100       12,544  

Beijing SL Pharmaceutical Co. Ltd., Class A

     11,600       41,947  

Beijing Thunisoft Corp. Ltd., Class A

     22,100       48,170  

Beijing Ultrapower Software Co. Ltd., Class A

     15,300       6,980  

Bluefocus Intelligent Communications Group Co. Ltd., Class A

     36,672       20,876  

By-health Co. Ltd., Class A

     14,600       37,526  

Changjiang Publishing & Media Co. Ltd., Class A

     31,900       30,641  

Changjiang Securities Co. Ltd., Class A

     69,900       55,665  

China Everbright Bank Co. Ltd., Class A

     400,000       244,874  

China International Marine Containers Group Co. Ltd., Class A

     38,700       64,620  

China International Travel Service Corp. Ltd., Class A

     11,400       93,236  

China Merchants Bank Co. Ltd., Class A

     103,400       454,215  

China Merchants Expressway Network & Technology Holdings Co. Ltd., Class A

     27,400       33,749  

China Merchants Securities Co. Ltd., Class A

     22,500       48,522  

China Merchants Shekou Industrial Zone Holdings Co. Ltd., Class A

     24,600       71,152  

China Pacific Insurance Group Co. Ltd., Class A

     23,600       109,218  

China Petroleum & Chemical Corp., Class A

     207,900       178,095  

China Resources Double Crane Pharmaceutical Co. Ltd., Class A

     62,400       101,518  

China Shenhua Energy Co. Ltd., Class A

     51,200       152,349  

China Union Holdings Ltd., Class A

     154,900       126,523  

China United Network Communications Ltd., Class A

     100       79  

China Vanke Co. Ltd., Class A

     52,400       218,293  

Chinese Universe Publishing and Media Group Co. Ltd., Class A

     22,400       42,791  

Chow Tai Seng Jewellery Co. Ltd., Class A

     1,700       7,202  

CMST Development Co. Ltd., Class A

     10,600       8,001  

COFCO Property Group Co. Ltd., Class A

     8,100       5,983  

COFCO Tunhe Sugar Co. Ltd., Class A

     158,400       163,839  
Security   Shares     Value  
China (continued)  

Daqin Railway Co. Ltd., Class A

     85,600     $ 109,390  

DHC Software Co. Ltd., Class A

     48,800       47,184  

Dongfang Electric Corp. Ltd., Class A(a)

     129,900       179,825  

Fangda Special Steel Technology Co. Ltd., Class A

     54,800       88,877  

Focused Photonics Hangzhou, Inc., Class A

     900       3,153  

Foshan Haitian Flavouring & Food Co. Ltd., Class A

     7,700       83,288  

Foshan Nationstar Optoelectronics Co. Ltd., Class A

     5,500       8,379  

Foxconn Industrial Internet Co. Ltd., Class A(a)

     26,500       45,423  

Fujian Longking Co. Ltd., Class A

     19,900       32,954  

Fujian Star-net Communication Co. Ltd., Class A

     37,300       97,459  

Gemdale Corp., Class A

     43,800       71,983  

GF Securities Co. Ltd., Class A

     5,500       10,454  

Grandblue Environment Co. Ltd., Class A

     31,500       65,287  

Gree Electric Appliances, Inc. of Zhuhai, Class A

     47,377       295,999  

Greenland Holdings Corp. Ltd., Class A

     49,700       47,778  

Guangzhou Restaurant Group Co. Ltd., Class A

     2,300       9,589  

Guangzhou Shiyuan Electronic Technology Co. Ltd., Class A

     10,000       91,659  

Guizhou Panjiang Refined Coal Co. Ltd., Class A

     14,600       10,595  

Guizhou Space Appliance Co. Ltd., Class A

     2,700       10,031  

Guotai Junan Securities Co. Ltd., Class A

     39,800       99,921  

Hangzhou Hangyang Co. Ltd., Class A

     1,400       2,019  

Hangzhou Hikvision Digital Technology Co. Ltd., Class A

     3,400       15,335  

Hengtong Optic-electric Co. Ltd., Class A

     2,500       6,507  

Hesteel Co. Ltd., Class A

     134,700       61,831  

Huadong Medicine Co. Ltd., Class A

     11,500       45,733  

Huatai Securities Co. Ltd., Class A

     26,600       76,402  

Huaxin Cement Co. Ltd., Class A

     12,200       32,953  

Huayu Automotive Systems Co. Ltd., Class A

     16,100       48,738  

Hubei Jumpcan Pharmaceutical Co. Ltd., Class A

     9,800       49,047  

Iflytek Co. Ltd., Class A

     8,472       34,710  

Industrial & Commercial Bank of China Ltd., Class A

     1,900       1,610  

Industrial Bank Co. Ltd., Class A

     122,100       300,115  

Jafron Biomedical Co. Ltd., Class A

     5,300       31,402  

Jiangsu Financial Leasing Co. Ltd., Class A

     17,700       14,616  

Jiangsu Nhwa Pharmaceutical Co. Ltd., Class A

     2,900       4,004  

Jiangsu Wuzhong Industrial Co., Class A

     7,100       5,984  

Jiangsu Yanghe Brewery Joint-Stock Co. Ltd., Class A

     6,500       92,102  

Jiangsu Zhongnan Construction Group Co. Ltd., Class A

     68,000       63,454  

Jiangxi Wannianqing Cement Co. Ltd., Class A

     14,200       23,655  

Jiayou International Logistics Co. Ltd., Class A

     3,700       20,212  

Jinke Properties Group Co. Ltd., Class A

     40,900       34,962  

Jinneng Science&Technology Co. Ltd., Class A

     800       1,477  

Jointo Energy Investment Co. Ltd. Hebei, Class A

     53,500       47,146  

Joyoung Co. Ltd., Class A

     18,400       46,373  

Juneyao Airlines Co. Ltd., Class A

     39,700       71,950  

Kweichow Moutai Co. Ltd., Class A

     1,200       123,878  

Lingyuan Iron & Steel Co. Ltd., Class A

     3,000       1,239  

Livzon Pharmaceutical Group, Inc., Class A

     9,500       38,599  

Luxshare Precision Industry Co. Ltd., Class A

     11,700       28,811  

Luzhou Laojiao Co. Ltd., Class A

     32,200       206,019  

Maanshan Iron & Steel Co. Ltd., Class A

     100       54  

Metallurgical Corp. of China Ltd., Class A

     392,900       171,391  

New China Life Insurance Co. Ltd., Class A

     8,400       53,069  

Northeast Securities Co. Ltd., Class A

     163,600       162,590  

O-film Tech Co. Ltd., Class A

     19,700       29,708  
 

 

 

     1  

Schedule of Investments  (unaudited) (continued)

January 31, 2019

   

BlackRock China A Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
China (continued)  

Ping An Insurance Group Co. of China Ltd., Class A

     66,800     $ 632,122  

Qiaqia Food Co. Ltd., Class A

     1,100       3,218  

Rainbow Department Store Co. Ltd., Class A

     46,200       79,120  

Red Star Macalline Group Corp. Ltd., Class A

     15,900       26,382  

RiseSun Real Estate Development Co. Ltd., Class A

     118,100       162,653  

Sansteel Minguang Co. Ltd. Fujian, Class A

     1,200       2,546  

Sany Heavy Industry Co. Ltd., Class A

     170,200       232,735  

SDIC Power Holdings Co. Ltd., Class A

     64,100       77,842  

Shandong Hualu Hengsheng Chemical Co. Ltd., Class A

     20,200       37,412  

Shandong Shanda WIT Science & Tech Co. Ltd., Class A

     11,600       25,753  

Shanghai Fosun Pharmaceutical Group Co. Ltd., Class A

     9,300       32,418  

Shanghai M&G Stationery, Inc., Class A

     1,200       5,396  

Shanghai Pharmaceuticals Holding Co. Ltd., Class A

     87,500       210,671  

Shanghai Tunnel Engineering Co. Ltd., Class A

     82,300       79,242  

Shennan Circuits Co. Ltd., Class A

     100       1,407  

Shenzhen Kaifa Technology Co. Ltd., Class A

     170,300       148,556  

Shenzhen Kinwong Electronic Co. Ltd., Class A

     7,300       53,695  

Shenzhen Sinovatio Technology Co. Ltd., Class A

     400       5,204  

Shenzhen Sunlord Electronics Co. Ltd., Class A

     15,600       35,436  

Shenzhen Suntak Circuit Technology Co. Ltd., Class A

     17,700       34,760  

Sichuan Kelun Pharmaceutical Co. Ltd., Class A

     24,400       78,182  

Sieyuan Electric Co. Ltd., Class A

     14,000       20,921  

Sinopec Shanghai Petrochemical Co. Ltd., Class A

     93,900       72,371  

Songcheng Performance Development Co. Ltd., Class A

     22,900       66,823  

SooChow Securities Co. Ltd., Class A

     141,300       148,726  

Sunflower Pharmaceutical Group Co. Ltd., Class A

     29,102       61,467  

Sunwoda Electronic Co. Ltd., Class A

     41,200       59,417  

Suzhou Keda Technology Co. Ltd., Class A

     21,600       62,023  

Taiji Computer Corp. Ltd., Class A

     3,800       12,801  

Tian Di Science & Technology Co. Ltd., Class A

     63,700       32,183  

Tongkun Group Co. Ltd., Class A

     24,500       39,105  

Tsingtao Brewery Co. Ltd., Class A

     17,500       98,812  

Universal Scientific Industrial Shanghai Co. Ltd., Class A

     23,300       33,489  

Venustech Group, Inc., Class A

     19,800       65,324  

Wanxiang Qianchao Co. Ltd., Class A

     46,200       36,560  

Weichai Power Co. Ltd., Class A

     73,898       97,996  

Weifu High-Technology Group Co. Ltd., Class A

     39,217       110,966  

Xiamen C & D, Inc., Class A

     12,300       14,147  

Xiamen Comfort Science & Technology Group Co. Ltd., Class A

     26,700       60,906  

Xiangpiaopiao Food Co. Ltd., Class A

     1,200       3,505  

Xinjiang Zhongtai Chemical Co. Ltd., Class A

     53,000       56,920  

Xinxing Ductile Iron Pipes Co. Ltd., Class A

     153,800       98,813  

Xinyu Iron & Steel Co. Ltd., Class A

     60,700       49,364  

Yonyou Network Technology Co. Ltd., Class A

     19,900       72,025  

Zhejiang Jingxin Pharmaceutical Co. Ltd., Class A

     3,900       4,926  

Zhejiang Semir Garment Co. Ltd., Class A

     9,400       13,262  

Zhejiang Supor Co. Ltd., Class A

     6,600       52,279  

Zoomlion Heavy Industry Science and Technology Co. Ltd., Class A

     254,300       141,460  
Security   Shares     Value  
China (continued)  

ZTE Corp., Class A(a)

     6,500     $ 19,753  
   

 

 

  
      10,900,056  
   

 

 

  

Total Common Stocks — 99.7%
(Cost: $10,029,783)

 

     10,900,056  
   

 

 

  

Total Long-Term Investments — 99.7%
(Cost: $10,029,783)

 

     10,900,056  
   

 

 

  

Short-Term Securities — 0.0%(b)(c)

 

BlackRock Liquidity Funds, T-Fund,
Institutional Class, 2.26%

     1       1  
   

 

 

  

Total Short-Term Securities — 0.0%
(Cost: $1)

 

     1  
   

 

 

  

Total Investments — 99.7%
(Cost: $10,029,784)

 

     10,900,057  

Other Assets Less Liabilities — 0.3%

 

     34,189  
   

 

 

  

Net Assets — 100.0%

 

   $ 10,934,246  
   

 

 

  
 
(a) 

Non-income producing security.

(b) 

Annualized 7-day yield as of period end.

(c) 

During the period ended January 31, 2019, investments in issuers considered to be an affiliate 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
12/28/18 (a)		      Net
Activity		      Shares
Held at
01/31/19		      Value at
01/31/19		      Income      Net Realized
Gain (Loss) (b)		      Change in
Unrealized
Appreciation
(Depreciation)		  

BlackRock Liquidity Funds, T-Fund, Institutional Class

      —        1        1      $ 1      $ 5,230      $ —      $ —  
           

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Commencement of operations.    

 
  (b) 

Includes net capital gain distributions, if applicable.

 

 

 

2   

Schedule of Investments  (unaudited) (continued)

January 31, 2019

   

BlackRock China A Opportunities Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a fair value hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  •  

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

 

  •  

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

 

  •  

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)

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the BlackRock Global Valuation Methodologies Committee (the “Global Valuation Committee”) in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds. There may not be a secondary market, and/or there are a limited number of investors. Level 3 investments may also be adjusted to reflect illiquidity and/or non-transferability, with the amount of such discount estimated by the Global Valuation Committee in the absence of market information.

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 is based on the pricing transparency of the investments and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy:

 

      Level 1        Level 2        Level 3        Total  

Assets:

                  

Investments:

                  

Long-Term Investments

                  

Common Stocks:

 

China

    $ 89,840        $ 10,810,216        $             —        $ 10,900,056  

Short-Term Securities

      1          —          —          1  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ 89,841        $ 10,810,216        $             —        $ 10,900,057  
  

 

 

       

 

 

       

 

 

       

 

 

  

During the period ended January 31, 2019, there were no transfers between levels.

 

 

     3  

Item 2 – Controls and Procedures

 

2(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.
2(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 registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3 – Exhibits

            Certifications – Attached hereto

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:   March 22, 2019

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:   March 22, 2019

 

By:  

/s/ Neal J. Andrews

  Neal J. Andrews
 

Chief Financial Officer (principal financial officer) of

BlackRock Funds

Date:   March 22, 2019