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 FundsSM
BlackRock Advantage International Fund
BlackRock Advantage Large Cap Growth Fund
BlackRock Advantage Small Cap Core Fund
BlackRock Commodity Strategies Fund
BlackRock Energy Opportunities Fund
BlackRock Health Sciences Opportunities Portfolio
BlackRock High Equity Income Fund
BlackRock Mid-Cap Growth Equity Portfolio
BlackRock SMID-Cap Growth Equity Fund
BlackRock Technology Opportunities Fund
BlackRock U.S. Insights Long/Short Equity Fund
Fund Address:  100 Bellevue Parkway, Wilmington, DE 19809
Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock FundsSM,
50 Hudson Yards, New York, NY 10001
Registrant's telephone number, including area code:
(800) 441-7762
Date of fiscal year end:
05/31/2025
Date of reporting period:
05/31/2025
Item 1 — Reports to Stockholders
(a) The Reports to Shareholders are attached herewith
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BlackRock Advantage International Fund
Institutional Shares | BROIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage International Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $54 0.50%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 16.48%.
  • For the same period, the Fund’s benchmark, the MSCI EAFE Index, returned 13.33%.
What contributed to performance?
The Fund delivered strong positive absolute performance during a period of heightened geopolitical tensions and market volatility. In regional and country terms, positive contributions were led by the Fund’s exposure to Japan where equities were boosted by structural reforms. Exposure to European financials also contributed meaningfully as banks in the region benefited from higher interest rates. This positioning was driven by sentiment insights, in particular those looking at broker reports and company executive views as these highly responsive measures proved adept at positioning the portfolio against a rapidly changing market backdrop. Quality-related measures also proved additive, most notably those looking at company balance sheets. Finally, macro thematic insights drove positive positioning within industrials, specifically in companies positioned to benefit from defense and aerospace spending increases amid rising geopolitical tensions.
What detracted from performance?
Insights based on analyzing informed investor sentiment detracted modestly, most notably positioning within energy names as the sector broadly lagged with oil prices range-bound at relatively low levels. In addition, positioning in European healthcare companies weighed on return given disappointing obesity drug trial data results and increased competition among weight loss drug manufacturers.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 16.48 % 13.13 % 6.90 %
MSCI EAFE Index 13.33 11.42 5.97
Key Fund statistics
Net Assets $4,880,629,060
Number of Portfolio Holdings 414
Net Investment Advisory Fees $10,342,204
Portfolio Turnover Rate 113%
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Global Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Geographic allocation
Country Percent of
Net Assets
Japan 23.0 %
United Kingdom 14.0 %
Germany 10.9 %
France 10.5 %
United States 7.2 %
Australia 6.0 %
Switzerland 5.6 %
Netherlands 4.4 %
Italy 2.7 %
Sweden 2.6 %
Other# 11.0 %
Short-Term Securities 2.9 %
Liabilities in Excess of Other Assets (0.8 )%
Ten largest holdings
Security(a) Percent of
Net Assets
SAP SE 2.7 %
Novartis AG, Registered Shares 2.2 %
ASML Holding NV 2.2 %
Roche Holding AG, NVS 1.9 %
AstraZeneca PLC 1.5 %
ABB Ltd., Registered Shares 1.3 %
Shell PLC 1.3 %
Commonwealth Bank of Australia 1.3 %
Safran SA 1.2 %
Deutsche Telekom AG, Registered Shares 1.2 %
​(a)
Excludes short-term securities.
​#
Ten largest countries are presented. Additional countries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage International Fund
Institutional Shares | BROIX
Annual Shareholder Report — May 31, 2025
BROIX-05/25-AR
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BlackRock Advantage International Fund
Investor A Shares | BROAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage International Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $82 0.76%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 16.14%.
  • For the same period, the Fund’s benchmark, the MSCI EAFE Index, returned 13.33%.
What contributed to performance?
The Fund delivered strong positive absolute performance during a period of heightened geopolitical tensions and market volatility. In regional and country terms, positive contributions were led by the Fund’s exposure to Japan where equities were boosted by structural reforms. Exposure to European financials also contributed meaningfully as banks in the region benefited from higher interest rates. This positioning was driven by sentiment insights, in particular those looking at broker reports and company executive views as these highly responsive measures proved adept at positioning the portfolio against a rapidly changing market backdrop. Quality-related measures also proved additive, most notably those looking at company balance sheets. Finally, macro thematic insights drove positive positioning within industrials, specifically in companies positioned to benefit from defense and aerospace spending increases amid rising geopolitical tensions.
What detracted from performance?
Insights based on analyzing informed investor sentiment detracted modestly, most notably positioning within energy names as the sector broadly lagged with oil prices range-bound at relatively low levels. In addition, positioning in European healthcare companies weighed on return given disappointing obesity drug trial data results and increased competition among weight loss drug manufacturers.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 16.14 % 12.84 % 6.62 %
Investor A Shares (with sales charge) 10.05 11.63 6.04
MSCI EAFE Index 13.33 11.42 5.97
Key Fund statistics
Net Assets $4,880,629,060
Number of Portfolio Holdings 414
Net Investment Advisory Fees $10,342,204
Portfolio Turnover Rate 113%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Global Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Geographic allocation
Country Percent of
Net Assets
Japan 23.0 %
United Kingdom 14.0 %
Germany 10.9 %
France 10.5 %
United States 7.2 %
Australia 6.0 %
Switzerland 5.6 %
Netherlands 4.4 %
Italy 2.7 %
Sweden 2.6 %
Other# 11.0 %
Short-Term Securities 2.9 %
Liabilities in Excess of Other Assets (0.8 )%
Ten largest holdings
Security(a) Percent of
Net Assets
SAP SE 2.7 %
Novartis AG, Registered Shares 2.2 %
ASML Holding NV 2.2 %
Roche Holding AG, NVS 1.9 %
AstraZeneca PLC 1.5 %
ABB Ltd., Registered Shares 1.3 %
Shell PLC 1.3 %
Commonwealth Bank of Australia 1.3 %
Safran SA 1.2 %
Deutsche Telekom AG, Registered Shares 1.2 %
​(a)
Excludes short-term securities.
​#
Ten largest countries are presented. Additional countries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage International Fund
Investor A Shares | BROAX
Annual Shareholder Report — May 31, 2025
BROAX-05/25-AR
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BlackRock Advantage International Fund
Investor C Shares | BROCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage International Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $161 1.50%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned 15.32%.
  • For the same period, the Fund’s benchmark, the MSCI EAFE Index, returned 13.33%.
What contributed to performance?
The Fund delivered strong positive absolute performance during a period of heightened geopolitical tensions and market volatility. In regional and country terms, positive contributions were led by the Fund’s exposure to Japan where equities were boosted by structural reforms. Exposure to European financials also contributed meaningfully as banks in the region benefited from higher interest rates. This positioning was driven by sentiment insights, in particular those looking at broker reports and company executive views as these highly responsive measures proved adept at positioning the portfolio against a rapidly changing market backdrop. Quality-related measures also proved additive, most notably those looking at company balance sheets. Finally, macro thematic insights drove positive positioning within industrials, specifically in companies positioned to benefit from defense and aerospace spending increases amid rising geopolitical tensions.
What detracted from performance?
Insights based on analyzing informed investor sentiment detracted modestly, most notably positioning within energy names as the sector broadly lagged with oil prices range-bound at relatively low levels. In addition, positioning in European healthcare companies weighed on return given disappointing obesity drug trial data results and increased competition among weight loss drug manufacturers.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 15.32 % 12.01 % 5.97 %
Investor C Shares (with sales charge) 14.32 12.01 5.97
MSCI EAFE Index 13.33 11.42 5.97
Key Fund statistics
Net Assets $4,880,629,060
Number of Portfolio Holdings 414
Net Investment Advisory Fees $10,342,204
Portfolio Turnover Rate 113%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Global Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Geographic allocation
Country Percent of
Net Assets
Japan 23.0 %
United Kingdom 14.0 %
Germany 10.9 %
France 10.5 %
United States 7.2 %
Australia 6.0 %
Switzerland 5.6 %
Netherlands 4.4 %
Italy 2.7 %
Sweden 2.6 %
Other# 11.0 %
Short-Term Securities 2.9 %
Liabilities in Excess of Other Assets (0.8 )%
Ten largest holdings
Security(a) Percent of
Net Assets
SAP SE 2.7 %
Novartis AG, Registered Shares 2.2 %
ASML Holding NV 2.2 %
Roche Holding AG, NVS 1.9 %
AstraZeneca PLC 1.5 %
ABB Ltd., Registered Shares 1.3 %
Shell PLC 1.3 %
Commonwealth Bank of Australia 1.3 %
Safran SA 1.2 %
Deutsche Telekom AG, Registered Shares 1.2 %
​(a)
Excludes short-term securities.
​#
Ten largest countries are presented. Additional countries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage International Fund
Investor C Shares | BROCX
Annual Shareholder Report — May 31, 2025
BROCX-05/25-AR
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BlackRock Advantage International Fund
Class K Shares | BROKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage International Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $49 0.45%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 16.58%.
  • For the same period, the Fund’s benchmark, the MSCI EAFE Index, returned 13.33%.
What contributed to performance?
The Fund delivered strong positive absolute performance during a period of heightened geopolitical tensions and market volatility. In regional and country terms, positive contributions were led by the Fund’s exposure to Japan where equities were boosted by structural reforms. Exposure to European financials also contributed meaningfully as banks in the region benefited from higher interest rates. This positioning was driven by sentiment insights, in particular those looking at broker reports and company executive views as these highly responsive measures proved adept at positioning the portfolio against a rapidly changing market backdrop. Quality-related measures also proved additive, most notably those looking at company balance sheets. Finally, macro thematic insights drove positive positioning within industrials, specifically in companies positioned to benefit from defense and aerospace spending increases amid rising geopolitical tensions.
What detracted from performance?
Insights based on analyzing informed investor sentiment detracted modestly, most notably positioning within energy names as the sector broadly lagged with oil prices range-bound at relatively low levels. In addition, positioning in European healthcare companies weighed on return given disappointing obesity drug trial data results and increased competition among weight loss drug manufacturers.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 16.58 % 13.19 % 6.94 %
MSCI EAFE Index 13.33 11.42 5.97
Key Fund statistics
Net Assets $4,880,629,060
Number of Portfolio Holdings 414
Net Investment Advisory Fees $10,342,204
Portfolio Turnover Rate 113%
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Global Opportunities Portfolio.
Performance shown prior to the Class K Shares inception date of January 25, 2018 is that of Institutional Shares. The performance of the Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Geographic allocation
Country Percent of
Net Assets
Japan 23.0 %
United Kingdom 14.0 %
Germany 10.9 %
France 10.5 %
United States 7.2 %
Australia 6.0 %
Switzerland 5.6 %
Netherlands 4.4 %
Italy 2.7 %
Sweden 2.6 %
Other# 11.0 %
Short-Term Securities 2.9 %
Liabilities in Excess of Other Assets (0.8 )%
Ten largest holdings
Security(a) Percent of
Net Assets
SAP SE 2.7 %
Novartis AG, Registered Shares 2.2 %
ASML Holding NV 2.2 %
Roche Holding AG, NVS 1.9 %
AstraZeneca PLC 1.5 %
ABB Ltd., Registered Shares 1.3 %
Shell PLC 1.3 %
Commonwealth Bank of Australia 1.3 %
Safran SA 1.2 %
Deutsche Telekom AG, Registered Shares 1.2 %
​(a)
Excludes short-term securities.
​#
Ten largest countries are presented. Additional countries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage International Fund
Class K Shares | BROKX
Annual Shareholder Report — May 31, 2025
BROKX-05/25-AR
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BlackRock Advantage International Fund
Class R Shares | BGORX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage International Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class R Shares $108 1.00%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class R Shares returned 15.90%.
  • For the same period, the Fund’s benchmark, the MSCI EAFE Index, returned 13.33%.
What contributed to performance?
The Fund delivered strong positive absolute performance during a period of heightened geopolitical tensions and market volatility. In regional and country terms, positive contributions were led by the Fund’s exposure to Japan where equities were boosted by structural reforms. Exposure to European financials also contributed meaningfully as banks in the region benefited from higher interest rates. This positioning was driven by sentiment insights, in particular those looking at broker reports and company executive views as these highly responsive measures proved adept at positioning the portfolio against a rapidly changing market backdrop. Quality-related measures also proved additive, most notably those looking at company balance sheets. Finally, macro thematic insights drove positive positioning within industrials, specifically in companies positioned to benefit from defense and aerospace spending increases amid rising geopolitical tensions.
What detracted from performance?
Insights based on analyzing informed investor sentiment detracted modestly, most notably positioning within energy names as the sector broadly lagged with oil prices range-bound at relatively low levels. In addition, positioning in European healthcare companies weighed on return given disappointing obesity drug trial data results and increased competition among weight loss drug manufacturers.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class R Shares 15.90 % 12.56 % 6.32 %
MSCI EAFE Index 13.33 11.42 5.97
Key Fund statistics
Net Assets $4,880,629,060
Number of Portfolio Holdings 414
Net Investment Advisory Fees $10,342,204
Portfolio Turnover Rate 113%
Average annual total returns reflect reductions for distribution and service fees.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Global Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Geographic allocation
Country Percent of
Net Assets
Japan 23.0 %
United Kingdom 14.0 %
Germany 10.9 %
France 10.5 %
United States 7.2 %
Australia 6.0 %
Switzerland 5.6 %
Netherlands 4.4 %
Italy 2.7 %
Sweden 2.6 %
Other# 11.0 %
Short-Term Securities 2.9 %
Liabilities in Excess of Other Assets (0.8 )%
Ten largest holdings
Security(a) Percent of
Net Assets
SAP SE 2.7 %
Novartis AG, Registered Shares 2.2 %
ASML Holding NV 2.2 %
Roche Holding AG, NVS 1.9 %
AstraZeneca PLC 1.5 %
ABB Ltd., Registered Shares 1.3 %
Shell PLC 1.3 %
Commonwealth Bank of Australia 1.3 %
Safran SA 1.2 %
Deutsche Telekom AG, Registered Shares 1.2 %
​(a)
Excludes short-term securities.
​#
Ten largest countries are presented. Additional countries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage International Fund
Class R Shares | BGORX
Annual Shareholder Report — May 31, 2025
BGORX-05/25-AR
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BlackRock Advantage Large Cap Growth Fund
Institutional Shares | CMVIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Large Cap Growth Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $68 0.62%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 17.86%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Growth Index returned 17.62%.
What contributed to performance?
Smart money sentiment insights that track hedge fund positioning at prime brokers supported successful positioning in industrials as supply chain bottlenecks cleared and capital goods orders recovered. Text-based sentiment measures drawn from broker reports proved additive within consumer discretionary, where steady wage growth and renewed appetite for travel and leisure kept spending resilient. A macro insight that monitors private market equity offering activity contributed in financials, benefiting returns as capital raising picked up on improved market sentiment during the spring rally.
What detracted from performance?
Traditional valuation measures evaluating company sales relative to enterprise value struggled within healthcare, as valuation-driven stocks lagged when the market rotated toward higher-growth narratives. Sentiment insights that compare bond market default risk with equity risk premiums underperformed in information technology, misreading the sector’s artificial intelligence-led advance while bond market credit spreads stayed wide. Finally, a macro model designed to block out short-term sentiment swings detracted in energy as volatile oil prices rendered its mean reversion signal ineffective.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 17.86 % 16.12 % 14.43 %
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Growth Index 17.62 17.69 16.08
Key Fund statistics
Net Assets $1,409,328,664
Number of Portfolio Holdings 150
Net Investment Advisory Fees $6,641,969
Portfolio Turnover Rate 149%
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Flexible Equity Fund.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 48.9 %
Consumer Discretionary 14.0 %
Communication Services 12.3 %
Health Care 7.9 %
Financials 7.9 %
Industrials 3.6 %
Consumer Staples 3.5 %
Real Estate 0.4 %
Energy 0.4 %
Materials 0.1 %
Short-Term Securities 0.9 %
Other Assets Less Liabilities 0.1 %
Ten largest holdings
Security(b) Percent of
Net Assets
Microsoft Corp. 9.3 %
Apple Inc. 7.7 %
NVIDIA Corp. 7.6 %
Broadcom, Inc. 5.1 %
Amazon.com, Inc. 4.9 %
Meta Platforms, Inc., Class A 4.8 %
Tesla, Inc. 3.2 %
Alphabet, Inc., Class C, NVS 2.8 %
Eli Lilly & Co. 2.3 %
Costco Wholesale Corp. 2.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Large Cap Growth Fund
Institutional Shares | CMVIX
Annual Shareholder Report — May 31, 2025
CMVIX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Advantage Large Cap Growth Fund
Investor A Shares | BMCAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Large Cap Growth Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $95 0.87%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 17.58%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Growth Index returned 17.62%.
What contributed to performance?
Smart money sentiment insights that track hedge fund positioning at prime brokers supported successful positioning in industrials as supply chain bottlenecks cleared and capital goods orders recovered. Text-based sentiment measures drawn from broker reports proved additive within consumer discretionary, where steady wage growth and renewed appetite for travel and leisure kept spending resilient. A macro insight that monitors private market equity offering activity contributed in financials, benefiting returns as capital raising picked up on improved market sentiment during the spring rally.
What detracted from performance?
Traditional valuation measures evaluating company sales relative to enterprise value struggled within healthcare, as valuation-driven stocks lagged when the market rotated toward higher-growth narratives. Sentiment insights that compare bond market default risk with equity risk premiums underperformed in information technology, misreading the sector’s artificial intelligence-led advance while bond market credit spreads stayed wide. Finally, a macro model designed to block out short-term sentiment swings detracted in energy as volatile oil prices rendered its mean reversion signal ineffective.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 17.58 % 15.83 % 14.13 %
Investor A Shares (with sales charge) 11.41 14.59 13.51
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Growth Index 17.62 17.69 16.08
Key Fund statistics
Net Assets $1,409,328,664
Number of Portfolio Holdings 150
Net Investment Advisory Fees $6,641,969
Portfolio Turnover Rate 149%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Flexible Equity Fund.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 48.9 %
Consumer Discretionary 14.0 %
Communication Services 12.3 %
Health Care 7.9 %
Financials 7.9 %
Industrials 3.6 %
Consumer Staples 3.5 %
Real Estate 0.4 %
Energy 0.4 %
Materials 0.1 %
Short-Term Securities 0.9 %
Other Assets Less Liabilities 0.1 %
Ten largest holdings
Security(b) Percent of
Net Assets
Microsoft Corp. 9.3 %
Apple Inc. 7.7 %
NVIDIA Corp. 7.6 %
Broadcom, Inc. 5.1 %
Amazon.com, Inc. 4.9 %
Meta Platforms, Inc., Class A 4.8 %
Tesla, Inc. 3.2 %
Alphabet, Inc., Class C, NVS 2.8 %
Eli Lilly & Co. 2.3 %
Costco Wholesale Corp. 2.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Large Cap Growth Fund
Investor A Shares | BMCAX
Annual Shareholder Report — May 31, 2025
BMCAX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Advantage Large Cap Growth Fund
Investor C Shares | BMCCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Large Cap Growth Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $176 1.62%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned 16.71%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Growth Index returned 17.62%.
What contributed to performance?
Smart money sentiment insights that track hedge fund positioning at prime brokers supported successful positioning in industrials as supply chain bottlenecks cleared and capital goods orders recovered. Text-based sentiment measures drawn from broker reports proved additive within consumer discretionary, where steady wage growth and renewed appetite for travel and leisure kept spending resilient. A macro insight that monitors private market equity offering activity contributed in financials, benefiting returns as capital raising picked up on improved market sentiment during the spring rally.
What detracted from performance?
Traditional valuation measures evaluating company sales relative to enterprise value struggled within healthcare, as valuation-driven stocks lagged when the market rotated toward higher-growth narratives. Sentiment insights that compare bond market default risk with equity risk premiums underperformed in information technology, misreading the sector’s artificial intelligence-led advance while bond market credit spreads stayed wide. Finally, a macro model designed to block out short-term sentiment swings detracted in energy as volatile oil prices rendered its mean reversion signal ineffective.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 16.71 % 14.97 % 13.43 %
Investor C Shares (with sales charge) 15.81 14.97 13.43
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Growth Index 17.62 17.69 16.08
Key Fund statistics
Net Assets $1,409,328,664
Number of Portfolio Holdings 150
Net Investment Advisory Fees $6,641,969
Portfolio Turnover Rate 149%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Flexible Equity Fund.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 48.9 %
Consumer Discretionary 14.0 %
Communication Services 12.3 %
Health Care 7.9 %
Financials 7.9 %
Industrials 3.6 %
Consumer Staples 3.5 %
Real Estate 0.4 %
Energy 0.4 %
Materials 0.1 %
Short-Term Securities 0.9 %
Other Assets Less Liabilities 0.1 %
Ten largest holdings
Security(b) Percent of
Net Assets
Microsoft Corp. 9.3 %
Apple Inc. 7.7 %
NVIDIA Corp. 7.6 %
Broadcom, Inc. 5.1 %
Amazon.com, Inc. 4.9 %
Meta Platforms, Inc., Class A 4.8 %
Tesla, Inc. 3.2 %
Alphabet, Inc., Class C, NVS 2.8 %
Eli Lilly & Co. 2.3 %
Costco Wholesale Corp. 2.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Large Cap Growth Fund
Investor C Shares | BMCCX
Annual Shareholder Report — May 31, 2025
BMCCX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Advantage Large Cap Growth Fund
Class K Shares | BMCKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Large Cap Growth Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $62 0.57%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 17.96%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Growth Index returned 17.62%.
What contributed to performance?
Smart money sentiment insights that track hedge fund positioning at prime brokers supported successful positioning in industrials as supply chain bottlenecks cleared and capital goods orders recovered. Text-based sentiment measures drawn from broker reports proved additive within consumer discretionary, where steady wage growth and renewed appetite for travel and leisure kept spending resilient. A macro insight that monitors private market equity offering activity contributed in financials, benefiting returns as capital raising picked up on improved market sentiment during the spring rally.
What detracted from performance?
Traditional valuation measures evaluating company sales relative to enterprise value struggled within healthcare, as valuation-driven stocks lagged when the market rotated toward higher-growth narratives. Sentiment insights that compare bond market default risk with equity risk premiums underperformed in information technology, misreading the sector’s artificial intelligence-led advance while bond market credit spreads stayed wide. Finally, a macro model designed to block out short-term sentiment swings detracted in energy as volatile oil prices rendered its mean reversion signal ineffective.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 17.96 % 16.17 % 14.38 %
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Growth Index 17.62 17.69 16.08
Key Fund statistics
Net Assets $1,409,328,664
Number of Portfolio Holdings 150
Net Investment Advisory Fees $6,641,969
Portfolio Turnover Rate 149%
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Flexible Equity Fund.
Performance shown prior to the Class K Shares inception date of January 25, 2018 is that of Investor A Shares. The performance of the Class K Shares would be substantially similar to Investor A Shares because Class K Shares and Investor A Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Investor A Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Investor A Shares because Class K Shares have lower expenses than the Investor A Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 48.9 %
Consumer Discretionary 14.0 %
Communication Services 12.3 %
Health Care 7.9 %
Financials 7.9 %
Industrials 3.6 %
Consumer Staples 3.5 %
Real Estate 0.4 %
Energy 0.4 %
Materials 0.1 %
Short-Term Securities 0.9 %
Other Assets Less Liabilities 0.1 %
Ten largest holdings
Security(b) Percent of
Net Assets
Microsoft Corp. 9.3 %
Apple Inc. 7.7 %
NVIDIA Corp. 7.6 %
Broadcom, Inc. 5.1 %
Amazon.com, Inc. 4.9 %
Meta Platforms, Inc., Class A 4.8 %
Tesla, Inc. 3.2 %
Alphabet, Inc., Class C, NVS 2.8 %
Eli Lilly & Co. 2.3 %
Costco Wholesale Corp. 2.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Large Cap Growth Fund
Class K Shares | BMCKX
Annual Shareholder Report — May 31, 2025
BMCKX-05/25-AR
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BlackRock Advantage Large Cap Growth Fund
Class R Shares | BMCRX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Large Cap Growth Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class R Shares $122 1.12%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class R Shares returned 17.29%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Growth Index returned 17.62%.
What contributed to performance?
Smart money sentiment insights that track hedge fund positioning at prime brokers supported successful positioning in industrials as supply chain bottlenecks cleared and capital goods orders recovered. Text-based sentiment measures drawn from broker reports proved additive within consumer discretionary, where steady wage growth and renewed appetite for travel and leisure kept spending resilient. A macro insight that monitors private market equity offering activity contributed in financials, benefiting returns as capital raising picked up on improved market sentiment during the spring rally.
What detracted from performance?
Traditional valuation measures evaluating company sales relative to enterprise value struggled within healthcare, as valuation-driven stocks lagged when the market rotated toward higher-growth narratives. Sentiment insights that compare bond market default risk with equity risk premiums underperformed in information technology, misreading the sector’s artificial intelligence-led advance while bond market credit spreads stayed wide. Finally, a macro model designed to block out short-term sentiment swings detracted in energy as volatile oil prices rendered its mean reversion signal ineffective.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class R Shares 17.29 % 15.55 % 13.82 %
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Growth Index 17.62 17.69 16.08
Key Fund statistics
Net Assets $1,409,328,664
Number of Portfolio Holdings 150
Net Investment Advisory Fees $6,641,969
Portfolio Turnover Rate 149%
Average annual total returns reflect reductions for distribution and service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund's returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Flexible Equity Fund.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 48.9 %
Consumer Discretionary 14.0 %
Communication Services 12.3 %
Health Care 7.9 %
Financials 7.9 %
Industrials 3.6 %
Consumer Staples 3.5 %
Real Estate 0.4 %
Energy 0.4 %
Materials 0.1 %
Short-Term Securities 0.9 %
Other Assets Less Liabilities 0.1 %
Ten largest holdings
Security(b) Percent of
Net Assets
Microsoft Corp. 9.3 %
Apple Inc. 7.7 %
NVIDIA Corp. 7.6 %
Broadcom, Inc. 5.1 %
Amazon.com, Inc. 4.9 %
Meta Platforms, Inc., Class A 4.8 %
Tesla, Inc. 3.2 %
Alphabet, Inc., Class C, NVS 2.8 %
Eli Lilly & Co. 2.3 %
Costco Wholesale Corp. 2.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Large Cap Growth Fund
Class R Shares | BMCRX
Annual Shareholder Report — May 31, 2025
BMCRX-05/25-AR
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BlackRock Advantage Small Cap Core Fund
Institutional Shares | BDSIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Small Cap Core Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $50 0.50%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 0.21%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2000® Index returned 1.19%.
What contributed to performance?
Fundamental quality measures that favor founder-led companies drove gains within financials, the Fund’s strongest contributor in sector terms. Sentiment insights that track persistent short-selling activity and seek to align with “smart” sellers added to returns in industrials, helping to identify companies benefiting from improving order flows as supply chain pressures eased. Fundamental insights based on high research and development spending relative to stock price contributed in information technology where smaller software and services firms continued to capitalize on demand driven by innovation.
What detracted from performance?
Fundamental measures that favor companies trading at low sales-to-enterprise-value ratios detracted in materials, where value-driven stock narratives remained under pressure. Another valuation insight that rewards high cash flow generation relative to enterprise value underperformed in energy, failing to offset the sector’s broad weakness. A macro signal that seeks to block out short-term sentiment swings struggled in consumer discretionary during the sector’s late-period downturn. Finally, the Fund employed derivatives, such as future’s contracts, which marginally detracted from results.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 0.21 % 9.74 % 7.47 %
Russell 3000® Index 13.12 15.34 12.21
Russell 2000® Index 1.19 9.64 6.64
Key Fund statistics
Net Assets $3,967,156,900
Number of Portfolio Holdings 786
Net Investment Advisory Fees $15,422,725
Portfolio Turnover Rate 88%
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 18.2 %
Industrials 16.9 %
Health Care 16.9 %
Information Technology 13.6 %
Consumer Discretionary 10.5 %
Real Estate 6.0 %
Energy 4.1 %
Materials 3.7 %
Consumer Staples 3.7 %
Communication Services 2.8 %
Utilities 2.4 %
Short-Term Securities 4.2 %
Liabilities in Excess of Other Assets (3.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Sprouts Farmers Market, Inc. 1.6 %
CubeSmart 1.3 %
ExlService Holdings, Inc. 0.8 %
Houlihan Lokey, Inc., Class A 0.7 %
Primoris Services Corp. 0.7 %
MasTec, Inc. 0.7 %
New Jersey Resources Corp. 0.6 %
Enova International, Inc. 0.6 %
Elastic NV 0.6 %
Comfort Systems U.S.A., Inc. 0.6 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Small Cap Core Fund
Institutional Shares | BDSIX
Annual Shareholder Report — May 31, 2025
BDSIX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Advantage Small Cap Core Fund
Investor A Shares | BDSAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Small Cap Core Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $75 0.75%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned (0.06)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2000® Index returned 1.19%.
What contributed to performance?
Fundamental quality measures that favor founder-led companies drove gains within financials, the Fund’s strongest contributor in sector terms. Sentiment insights that track persistent short-selling activity and seek to align with “smart” sellers added to returns in industrials, helping to identify companies benefiting from improving order flows as supply chain pressures eased. Fundamental insights based on high research and development spending relative to stock price contributed in information technology where smaller software and services firms continued to capitalize on demand driven by innovation.
What detracted from performance?
Fundamental measures that favor companies trading at low sales-to-enterprise-value ratios detracted in materials, where value-driven stock narratives remained under pressure. Another valuation insight that rewards high cash flow generation relative to enterprise value underperformed in energy, failing to offset the sector’s broad weakness. A macro signal that seeks to block out short-term sentiment swings struggled in consumer discretionary during the sector’s late-period downturn. Finally, the Fund employed derivatives, such as future’s contracts, which marginally detracted from results.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares (0.06 )% 9.45 % 7.20 %
Investor A Shares (with sales charge) (5.31 ) 8.28 6.62
Russell 3000® Index 13.12 15.34 12.21
Russell 2000® Index 1.19 9.64 6.64
Key Fund statistics
Net Assets $3,967,156,900
Number of Portfolio Holdings 786
Net Investment Advisory Fees $15,422,725
Portfolio Turnover Rate 88%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 18.2 %
Industrials 16.9 %
Health Care 16.9 %
Information Technology 13.6 %
Consumer Discretionary 10.5 %
Real Estate 6.0 %
Energy 4.1 %
Materials 3.7 %
Consumer Staples 3.7 %
Communication Services 2.8 %
Utilities 2.4 %
Short-Term Securities 4.2 %
Liabilities in Excess of Other Assets (3.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Sprouts Farmers Market, Inc. 1.6 %
CubeSmart 1.3 %
ExlService Holdings, Inc. 0.8 %
Houlihan Lokey, Inc., Class A 0.7 %
Primoris Services Corp. 0.7 %
MasTec, Inc. 0.7 %
New Jersey Resources Corp. 0.6 %
Enova International, Inc. 0.6 %
Elastic NV 0.6 %
Comfort Systems U.S.A., Inc. 0.6 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Small Cap Core Fund
Investor A Shares | BDSAX
Annual Shareholder Report — May 31, 2025
BDSAX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Advantage Small Cap Core Fund
Investor C Shares | BDSCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Small Cap Core Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $149 1.50%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned (0.82)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2000® Index returned 1.19%.
What contributed to performance?
Fundamental quality measures that favor founder-led companies drove gains within financials, the Fund’s strongest contributor in sector terms. Sentiment insights that track persistent short-selling activity and seek to align with “smart” sellers added to returns in industrials, helping to identify companies benefiting from improving order flows as supply chain pressures eased. Fundamental insights based on high research and development spending relative to stock price contributed in information technology where smaller software and services firms continued to capitalize on demand driven by innovation.
What detracted from performance?
Fundamental measures that favor companies trading at low sales-to-enterprise-value ratios detracted in materials, where value-driven stock narratives remained under pressure. Another valuation insight that rewards high cash flow generation relative to enterprise value underperformed in energy, failing to offset the sector’s broad weakness. A macro signal that seeks to block out short-term sentiment swings struggled in consumer discretionary during the sector’s late-period downturn. Finally, the Fund employed derivatives, such as future’s contracts, which marginally detracted from results.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares (0.82 )% 8.65 % 6.55 %
Investor C Shares (with sales charge) (1.82 ) 8.65 6.55
Russell 3000® Index 13.12 15.34 12.21
Russell 2000® Index 1.19 9.64 6.64
Key Fund statistics
Net Assets $3,967,156,900
Number of Portfolio Holdings 786
Net Investment Advisory Fees $15,422,725
Portfolio Turnover Rate 88%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 18.2 %
Industrials 16.9 %
Health Care 16.9 %
Information Technology 13.6 %
Consumer Discretionary 10.5 %
Real Estate 6.0 %
Energy 4.1 %
Materials 3.7 %
Consumer Staples 3.7 %
Communication Services 2.8 %
Utilities 2.4 %
Short-Term Securities 4.2 %
Liabilities in Excess of Other Assets (3.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Sprouts Farmers Market, Inc. 1.6 %
CubeSmart 1.3 %
ExlService Holdings, Inc. 0.8 %
Houlihan Lokey, Inc., Class A 0.7 %
Primoris Services Corp. 0.7 %
MasTec, Inc. 0.7 %
New Jersey Resources Corp. 0.6 %
Enova International, Inc. 0.6 %
Elastic NV 0.6 %
Comfort Systems U.S.A., Inc. 0.6 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Small Cap Core Fund
Investor C Shares | BDSCX
Annual Shareholder Report — May 31, 2025
BDSCX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Advantage Small Cap Core Fund
Class K Shares | BDSKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Advantage Small Cap Core Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $45 0.45%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 0.25%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2000® Index returned 1.19%.
What contributed to performance?
Fundamental quality measures that favor founder-led companies drove gains within financials, the Fund’s strongest contributor in sector terms. Sentiment insights that track persistent short-selling activity and seek to align with “smart” sellers added to returns in industrials, helping to identify companies benefiting from improving order flows as supply chain pressures eased. Fundamental insights based on high research and development spending relative to stock price contributed in information technology where smaller software and services firms continued to capitalize on demand driven by innovation.
What detracted from performance?
Fundamental measures that favor companies trading at low sales-to-enterprise-value ratios detracted in materials, where value-driven stock narratives remained under pressure. Another valuation insight that rewards high cash flow generation relative to enterprise value underperformed in energy, failing to offset the sector’s broad weakness. A macro signal that seeks to block out short-term sentiment swings struggled in consumer discretionary during the sector’s late-period downturn. Finally, the Fund employed derivatives, such as future’s contracts, which marginally detracted from results.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 0.25 % 9.79 % 7.52 %
Russell 3000® Index 13.12 15.34 12.21
Russell 2000® Index 1.19 9.64 6.64
Key Fund statistics
Net Assets $3,967,156,900
Number of Portfolio Holdings 786
Net Investment Advisory Fees $15,422,725
Portfolio Turnover Rate 88%
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Performance shown prior to the Class K Shares inception date of March 28, 2016 is that of Institutional Shares. The performance of the Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 18.2 %
Industrials 16.9 %
Health Care 16.9 %
Information Technology 13.6 %
Consumer Discretionary 10.5 %
Real Estate 6.0 %
Energy 4.1 %
Materials 3.7 %
Consumer Staples 3.7 %
Communication Services 2.8 %
Utilities 2.4 %
Short-Term Securities 4.2 %
Liabilities in Excess of Other Assets (3.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Sprouts Farmers Market, Inc. 1.6 %
CubeSmart 1.3 %
ExlService Holdings, Inc. 0.8 %
Houlihan Lokey, Inc., Class A 0.7 %
Primoris Services Corp. 0.7 %
MasTec, Inc. 0.7 %
New Jersey Resources Corp. 0.6 %
Enova International, Inc. 0.6 %
Elastic NV 0.6 %
Comfort Systems U.S.A., Inc. 0.6 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Advantage Small Cap Core Fund
Class K Shares | BDSKX
Annual Shareholder Report — May 31, 2025
BDSKX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Commodity Strategies Fund
Institutional Shares | BICSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Commodity Strategies Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $74 0.72%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 5.40%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the Bloomberg Commodity Index Total ReturnSM returned 1.69%.
What contributed to performance?
The Fund’s holdings in commodity derivatives—which it uses to achieve exposure to physical commodities—contributed to absolute performance, as did its positions in gold stocks. The gold miners Agnico-Eagle Mines Ltd., Kinross Gold Corp., Wheaton Precious Metals Corp., Lundin Gold, Inc. and AngloGold Ashanti PLC were all among the top absolute performers thanks to the combination of rising gold prices and improving management of their operational costs. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s position in the diversified mining company Glencore PLC, which was hurt by weak coal prices and concerns about the impact of U.S. tariffs, was a leading detractor from absolute performance. The pharmaceutical company Novo Nordisk A/S, which the Fund holds as part of its clinical nutrition theme, also detracted. The shares fell due to intensifying competition in the market for GLP-1 weight loss drugs. The paper and packaging company Graphic Packaging Holding Co. was a further detractor, as a slowdown in e-commerce growth dampened demand.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 5.40 % 12.91 % 4.53 %
MSCI All Country World Index 13.65 13.37 9.25
Bloomberg Commodity Index Total ReturnSM 1.69 12.65 1.92
Key Fund statistics
Net Assets $621,905,258
Number of Portfolio Holdings 182
Net Investment Advisory Fees $3,514,241
Portfolio Turnover Rate 106%
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Materials 37.0 %
Energy 12.5 %
Short-Term Securities 50.8 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Nutrien Ltd. 4.4 %
Corteva, Inc. 3.5 %
Exxon Mobil Corp. 2.4 %
Smurfit WestRock PLC 2.1 %
Packaging Corp. of America 1.6 %
Agnico Eagle Mines Ltd. 1.6 %
Graphic Packaging Holding Co. 1.3 %
Shell PLC 1.3 %
Wheaton Precious Metals Corp. 1.3 %
Mosaic Co. (The) 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, MSCI, Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Commodity Strategies Fund
Institutional Shares | BICSX
Annual Shareholder Report — May 31, 2025
BICSX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Commodity Strategies Fund
Investor A Shares | BCSAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Commodity Strategies Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $99 0.97%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 5.06%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the Bloomberg Commodity Index Total ReturnSM returned 1.69%.
What contributed to performance?
The Fund’s holdings in commodity derivatives—which it uses to achieve exposure to physical commodities—contributed to absolute performance, as did its positions in gold stocks. The gold miners Agnico-Eagle Mines Ltd., Kinross Gold Corp., Wheaton Precious Metals Corp., Lundin Gold, Inc. and AngloGold Ashanti PLC were all among the top absolute performers thanks to the combination of rising gold prices and improving management of their operational costs. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s position in the diversified mining company Glencore PLC, which was hurt by weak coal prices and concerns about the impact of U.S. tariffs, was a leading detractor from absolute performance. The pharmaceutical company Novo Nordisk A/S, which the Fund holds as part of its clinical nutrition theme, also detracted. The shares fell due to intensifying competition in the market for GLP-1 weight loss drugs. The paper and packaging company Graphic Packaging Holding Co. was a further detractor, as a slowdown in e-commerce growth dampened demand.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 5.06 % 12.61 % 4.25 %
Investor A Shares (with sales charge) (0.45 ) 11.41 3.69
MSCI All Country World Index 13.65 13.37 9.25
Bloomberg Commodity Index Total ReturnSM 1.69 12.65 1.92
Key Fund statistics
Net Assets $621,905,258
Number of Portfolio Holdings 182
Net Investment Advisory Fees $3,514,241
Portfolio Turnover Rate 106%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Materials 37.0 %
Energy 12.5 %
Short-Term Securities 50.8 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Nutrien Ltd. 4.4 %
Corteva, Inc. 3.5 %
Exxon Mobil Corp. 2.4 %
Smurfit WestRock PLC 2.1 %
Packaging Corp. of America 1.6 %
Agnico Eagle Mines Ltd. 1.6 %
Graphic Packaging Holding Co. 1.3 %
Shell PLC 1.3 %
Wheaton Precious Metals Corp. 1.3 %
Mosaic Co. (The) 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, MSCI, Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Commodity Strategies Fund
Investor A Shares | BCSAX
Annual Shareholder Report — May 31, 2025
BCSAX-05/25-AR
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BlackRock Commodity Strategies Fund
Investor C Shares | BCSCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Commodity Strategies Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $176 1.72%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned 4.25%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the Bloomberg Commodity Index Total ReturnSM returned 1.69%.
What contributed to performance?
The Fund’s holdings in commodity derivatives—which it uses to achieve exposure to physical commodities—contributed to absolute performance, as did its positions in gold stocks. The gold miners Agnico-Eagle Mines Ltd., Kinross Gold Corp., Wheaton Precious Metals Corp., Lundin Gold, Inc. and AngloGold Ashanti PLC were all among the top absolute performers thanks to the combination of rising gold prices and improving management of their operational costs. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s position in the diversified mining company Glencore PLC, which was hurt by weak coal prices and concerns about the impact of U.S. tariffs, was a leading detractor from absolute performance. The pharmaceutical company Novo Nordisk A/S, which the Fund holds as part of its clinical nutrition theme, also detracted. The shares fell due to intensifying competition in the market for GLP-1 weight loss drugs. The paper and packaging company Graphic Packaging Holding Co. was a further detractor, as a slowdown in e-commerce growth dampened demand.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 4.25 % 11.78 % 3.64 %
Investor C Shares (with sales charge) 3.25 11.78 3.64
MSCI All Country World Index 13.65 13.37 9.25
Bloomberg Commodity Index Total ReturnSM 1.69 12.65 1.92
Key Fund statistics
Net Assets $621,905,258
Number of Portfolio Holdings 182
Net Investment Advisory Fees $3,514,241
Portfolio Turnover Rate 106%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Materials 37.0 %
Energy 12.5 %
Short-Term Securities 50.8 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Nutrien Ltd. 4.4 %
Corteva, Inc. 3.5 %
Exxon Mobil Corp. 2.4 %
Smurfit WestRock PLC 2.1 %
Packaging Corp. of America 1.6 %
Agnico Eagle Mines Ltd. 1.6 %
Graphic Packaging Holding Co. 1.3 %
Shell PLC 1.3 %
Wheaton Precious Metals Corp. 1.3 %
Mosaic Co. (The) 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, MSCI, Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Commodity Strategies Fund
Investor C Shares | BCSCX
Annual Shareholder Report — May 31, 2025
BCSCX-05/25-AR
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BlackRock Commodity Strategies Fund
Class K Shares | BCSKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Commodity Strategies Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $69 0.67%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 5.45%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the Bloomberg Commodity Index Total ReturnSM returned 1.69%.
What contributed to performance?
The Fund’s holdings in commodity derivatives—which it uses to achieve exposure to physical commodities—contributed to absolute performance, as did its positions in gold stocks. The gold miners Agnico-Eagle Mines Ltd., Kinross Gold Corp., Wheaton Precious Metals Corp., Lundin Gold, Inc. and AngloGold Ashanti PLC were all among the top absolute performers thanks to the combination of rising gold prices and improving management of their operational costs. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s position in the diversified mining company Glencore PLC, which was hurt by weak coal prices and concerns about the impact of U.S. tariffs, was a leading detractor from absolute performance. The pharmaceutical company Novo Nordisk A/S, which the Fund holds as part of its clinical nutrition theme, also detracted. The shares fell due to intensifying competition in the market for GLP-1 weight loss drugs. The paper and packaging company Graphic Packaging Holding Co. was a further detractor, as a slowdown in e-commerce growth dampened demand.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 5.45 % 12.95 % 4.57 %
MSCI All Country World Index 13.65 13.37 9.25
Bloomberg Commodity Index Total ReturnSM 1.69 12.65 1.92
Key Fund statistics
Net Assets $621,905,258
Number of Portfolio Holdings 182
Net Investment Advisory Fees $3,514,241
Portfolio Turnover Rate 106%
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
Performance shown prior to the Class K Shares inception date of January 25, 2018 is that of Institutional Shares. The performance of the Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Materials 37.0 %
Energy 12.5 %
Short-Term Securities 50.8 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Nutrien Ltd. 4.4 %
Corteva, Inc. 3.5 %
Exxon Mobil Corp. 2.4 %
Smurfit WestRock PLC 2.1 %
Packaging Corp. of America 1.6 %
Agnico Eagle Mines Ltd. 1.6 %
Graphic Packaging Holding Co. 1.3 %
Shell PLC 1.3 %
Wheaton Precious Metals Corp. 1.3 %
Mosaic Co. (The) 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by Bloomberg Index Services Limited, MSCI, Inc., and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Commodity Strategies Fund
Class K Shares | BCSKX
Annual Shareholder Report — May 31, 2025
BCSKX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Energy Opportunities Fund
Institutional Shares | BACIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Energy Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $89 0.92%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned (7.60)%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI World Energy Index returned (7.34)%.
What contributed to performance?
The Fund’s holdings in energy distribution companies were notable contributors to absolute performance. The portfolio’s positions in this area were focused on companies with greater exposure to natural gas, liquid natural gas (“LNG”), and capabilities in the Permian Basin. Overweight positions in the distribution companies Williams Cos., TC Energy Corp., and Pembina Pipeline Corp. all contributed positively, as did the LNG exporter Cheniere Energy, Inc. Valuations for energy infrastructure assets generally increased due to expectations for rising U.S. power demand, as well as their lower sensitivity to crude oil prices. The Fund’s position in the uranium supplier Cameco Corp. also benefited from the outlook for growing power demand, together with anticipation of increased investment in nuclear power.
What detracted from performance?
Holdings in oil-related stocks were among the largest detractors. Oil prices fell sharply due to rising OPEC production and concerns that slower global growth would crimp demand. The Fund’s position in BP PLC detracted from returns, as did holdings in integrated energy companies such as Exxon Mobil Corp., Chevron Corp., and Total Energies SE. Holdings in energy exploration and production companies posted negative returns, as well. A position in ConocoPhillips, which was pressured by its bid for a competitor, also hurt absolute performance.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares (7.60 )% 18.18 % 2.83 %
MSCI All Country World Index 13.65 13.37 9.25
MSCI World Energy Index (7.34 ) 17.73 3.66
Key Fund statistics
Net Assets $264,678,340
Number of Portfolio Holdings 27
Net Investment Advisory Fees $2,294,865
Portfolio Turnover Rate 66%
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Oil, Gas & Consumable Fuels 95.8 %
Energy Equipment & Services 2.8 %
Short-Term Securities 0.7 %
Other Assets Less Liabilities 0.7 %
Ten largest holdings
Security(b) Percent of
Net Assets
Exxon Mobil Corp. 19.6 %
Shell PLC 10.5 %
Chevron Corp. 9.7 %
TotalEnergies SE 7.1 %
Canadian Natural Resources Ltd. 4.2 %
Cheniere Energy, Inc. 4.1 %
TC Energy Corp. 4.1 %
Williams Cos., Inc. (The) 4.1 %
Kinder Morgan, Inc. 3.8 %
EOG Resources, Inc. 3.7 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Energy Opportunities Fund
Institutional Shares | BACIX
Annual Shareholder Report — May 31, 2025
BACIX-05/25-AR
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BlackRock Energy Opportunities Fund
Investor A Shares | BACAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Energy Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $125 1.30%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned (8.00)%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI World Energy Index returned (7.34)%.
What contributed to performance?
The Fund’s holdings in energy distribution companies were notable contributors to absolute performance. The portfolio’s positions in this area were focused on companies with greater exposure to natural gas, liquid natural gas (“LNG”), and capabilities in the Permian Basin. Overweight positions in the distribution companies Williams Cos., TC Energy Corp., and Pembina Pipeline Corp. all contributed positively, as did the LNG exporter Cheniere Energy, Inc. Valuations for energy infrastructure assets generally increased due to expectations for rising U.S. power demand, as well as their lower sensitivity to crude oil prices. The Fund’s position in the uranium supplier Cameco Corp. also benefited from the outlook for growing power demand, together with anticipation of increased investment in nuclear power.
What detracted from performance?
Holdings in oil-related stocks were among the largest detractors. Oil prices fell sharply due to rising OPEC production and concerns that slower global growth would crimp demand. The Fund’s position in BP PLC detracted from returns, as did holdings in integrated energy companies such as Exxon Mobil Corp., Chevron Corp., and Total Energies SE. Holdings in energy exploration and production companies posted negative returns, as well. A position in ConocoPhillips, which was pressured by its bid for a competitor, also hurt absolute performance.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares (8.00 )% 17.70 % 2.40 %
Investor A Shares (with sales charge) (12.83 ) 16.44 1.85
MSCI All Country World Index 13.65 13.37 9.25
MSCI World Energy Index (7.34 ) 17.73 3.66
Key Fund statistics
Net Assets $264,678,340
Number of Portfolio Holdings 27
Net Investment Advisory Fees $2,294,865
Portfolio Turnover Rate 66%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Oil, Gas & Consumable Fuels 95.8 %
Energy Equipment & Services 2.8 %
Short-Term Securities 0.7 %
Other Assets Less Liabilities 0.7 %
Ten largest holdings
Security(b) Percent of
Net Assets
Exxon Mobil Corp. 19.6 %
Shell PLC 10.5 %
Chevron Corp. 9.7 %
TotalEnergies SE 7.1 %
Canadian Natural Resources Ltd. 4.2 %
Cheniere Energy, Inc. 4.1 %
TC Energy Corp. 4.1 %
Williams Cos., Inc. (The) 4.1 %
Kinder Morgan, Inc. 3.8 %
EOG Resources, Inc. 3.7 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Energy Opportunities Fund
Investor A Shares | BACAX
Annual Shareholder Report — May 31, 2025
BACAX-05/25-AR
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BlackRock Energy Opportunities Fund
Investor C Shares | BACCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Energy Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $191 2.00%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned (8.68)%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI World Energy Index returned (7.34)%.
What contributed to performance?
The Fund’s holdings in energy distribution companies were notable contributors to absolute performance. The portfolio’s positions in this area were focused on companies with greater exposure to natural gas, liquid natural gas (“LNG”), and capabilities in the Permian Basin. Overweight positions in the distribution companies Williams Cos., TC Energy Corp., and Pembina Pipeline Corp. all contributed positively, as did the LNG exporter Cheniere Energy, Inc. Valuations for energy infrastructure assets generally increased due to expectations for rising U.S. power demand, as well as their lower sensitivity to crude oil prices. The Fund’s position in the uranium supplier Cameco Corp. also benefited from the outlook for growing power demand, together with anticipation of increased investment in nuclear power.
What detracted from performance?
Holdings in oil-related stocks were among the largest detractors. Oil prices fell sharply due to rising OPEC production and concerns that slower global growth would crimp demand. The Fund’s position in BP PLC detracted from returns, as did holdings in integrated energy companies such as Exxon Mobil Corp., Chevron Corp., and Total Energies SE. Holdings in energy exploration and production companies posted negative returns, as well. A position in ConocoPhillips, which was pressured by its bid for a competitor, also hurt absolute performance.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares (8.68 )% 16.85 % 1.81 %
Investor C Shares (with sales charge) (9.58 ) 16.85 1.81
MSCI All Country World Index 13.65 13.37 9.25
MSCI World Energy Index (7.34 ) 17.73 3.66
Key Fund statistics
Net Assets $264,678,340
Number of Portfolio Holdings 27
Net Investment Advisory Fees $2,294,865
Portfolio Turnover Rate 66%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Oil, Gas & Consumable Fuels 95.8 %
Energy Equipment & Services 2.8 %
Short-Term Securities 0.7 %
Other Assets Less Liabilities 0.7 %
Ten largest holdings
Security(b) Percent of
Net Assets
Exxon Mobil Corp. 19.6 %
Shell PLC 10.5 %
Chevron Corp. 9.7 %
TotalEnergies SE 7.1 %
Canadian Natural Resources Ltd. 4.2 %
Cheniere Energy, Inc. 4.1 %
TC Energy Corp. 4.1 %
Williams Cos., Inc. (The) 4.1 %
Kinder Morgan, Inc. 3.8 %
EOG Resources, Inc. 3.7 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Energy Opportunities Fund
Investor C Shares | BACCX
Annual Shareholder Report — May 31, 2025
BACCX-05/25-AR
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BlackRock Health Sciences Opportunities Portfolio
Institutional Shares | SHSSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Health Sciences Opportunities Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $82 0.84%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned (5.77)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 3000® Health Care Index returned (6.31)%.
What contributed to performance?
Boston Scientific Corp. was the largest contributor to the Fund’s absolute performance. Shares of the biotech company rallied on the strength of revenue and earnings growth that exceeded analysts’ expectations. Abbott Laboratories also contributed to returns due to strong sales and earnings growth, particularly in its medical devices and diabetes care segments, as well as robust performance in diagnostics and emerging markets. Gilead Sciences, Inc. further contributed to Fund returns. The company delivered strong financial results with upbeat guidance, and it announced positive clinical trial results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
UnitedHealth Group Inc. was the largest detractor. The health insurer’s stock fell due to a combination of surging medical costs, the abrupt resignation of its chief executive officer, the withdrawal of its 2025 earnings guidance, and reports of a U.S. Department of Justice probe into potential Medicare fraud. Eli Lilly & Co. also detracted from performance, primarily as a result of earnings misses and reduced guidance. Thermo Fisher Scientific Inc., which reduced its guidance due to ongoing weakness in China, macroeconomic headwinds, and the negative impact of new tariffs, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares (5.77 )% 4.72 % 7.46 %
Russell 3000® Index 13.12 15.34 12.21
Russell 3000® Health Care Index (6.31 ) 5.44 7.14
Key Fund statistics
Net Assets $6,446,425,713
Number of Portfolio Holdings 131
Net Investment Advisory Fees $52,207,307
Portfolio Turnover Rate 43%
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Health Care Equipment & Supplies 29.1 %
Biotechnology 24.9 %
Pharmaceuticals 20.5 %
Health Care Providers & Services 15.2 %
Life Sciences Tools & Services 6.2 %
Financial Services 0.1 %
Short-Term Securities 6.0 %
Liabilities in Excess of Other Assets (2.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Eli Lilly & Co. 8.9 %
Boston Scientific Corp. 6.7 %
AbbVie, Inc. 6.0 %
Abbott Laboratories 5.4 %
UnitedHealth Group, Inc. 4.4 %
Johnson & Johnson 4.1 %
Stryker Corp. 4.0 %
Amgen, Inc. 3.3 %
Intuitive Surgical, Inc. 3.3 %
Edwards Lifesciences Corp. 2.9 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Health Sciences Opportunities Portfolio
Institutional Shares | SHSSX
Annual Shareholder Report — May 31, 2025
SHSSX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Health Sciences Opportunities Portfolio
Service Shares | SHISX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Health Sciences Opportunities Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Service Shares $112 1.15%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Service Shares returned (6.08)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 3000® Health Care Index returned (6.31)%.
What contributed to performance?
Boston Scientific Corp. was the largest contributor to the Fund’s absolute performance. Shares of the biotech company rallied on the strength of revenue and earnings growth that exceeded analysts’ expectations. Abbott Laboratories also contributed to returns due to strong sales and earnings growth, particularly in its medical devices and diabetes care segments, as well as robust performance in diagnostics and emerging markets. Gilead Sciences, Inc. further contributed to Fund returns. The company delivered strong financial results with upbeat guidance, and it announced positive clinical trial results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
UnitedHealth Group Inc. was the largest detractor. The health insurer’s stock fell due to a combination of surging medical costs, the abrupt resignation of its chief executive officer, the withdrawal of its 2025 earnings guidance, and reports of a U.S. Department of Justice probe into potential Medicare fraud. Eli Lilly & Co. also detracted from performance, primarily as a result of earnings misses and reduced guidance. Thermo Fisher Scientific Inc., which reduced its guidance due to ongoing weakness in China, macroeconomic headwinds, and the negative impact of new tariffs, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Service Shares (6.08 )% 4.40 % 7.14 %
Russell 3000® Index 13.12 15.34 12.21
Russell 3000® Health Care Index (6.31 ) 5.44 7.14
Key Fund statistics
Net Assets $6,446,425,713
Number of Portfolio Holdings 131
Net Investment Advisory Fees $52,207,307
Portfolio Turnover Rate 43%
Average annual total returns reflect reductions for service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Health Care Equipment & Supplies 29.1 %
Biotechnology 24.9 %
Pharmaceuticals 20.5 %
Health Care Providers & Services 15.2 %
Life Sciences Tools & Services 6.2 %
Financial Services 0.1 %
Short-Term Securities 6.0 %
Liabilities in Excess of Other Assets (2.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Eli Lilly & Co. 8.9 %
Boston Scientific Corp. 6.7 %
AbbVie, Inc. 6.0 %
Abbott Laboratories 5.4 %
UnitedHealth Group, Inc. 4.4 %
Johnson & Johnson 4.1 %
Stryker Corp. 4.0 %
Amgen, Inc. 3.3 %
Intuitive Surgical, Inc. 3.3 %
Edwards Lifesciences Corp. 2.9 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Health Sciences Opportunities Portfolio
Service Shares | SHISX
Annual Shareholder Report — May 31, 2025
SHISX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Health Sciences Opportunities Portfolio
Investor A Shares | SHSAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Health Sciences Opportunities Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $106 1.09%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned (6.03)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 3000® Health Care Index returned (6.31)%.
What contributed to performance?
Boston Scientific Corp. was the largest contributor to the Fund’s absolute performance. Shares of the biotech company rallied on the strength of revenue and earnings growth that exceeded analysts’ expectations. Abbott Laboratories also contributed to returns due to strong sales and earnings growth, particularly in its medical devices and diabetes care segments, as well as robust performance in diagnostics and emerging markets. Gilead Sciences, Inc. further contributed to Fund returns. The company delivered strong financial results with upbeat guidance, and it announced positive clinical trial results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
UnitedHealth Group Inc. was the largest detractor. The health insurer’s stock fell due to a combination of surging medical costs, the abrupt resignation of its chief executive officer, the withdrawal of its 2025 earnings guidance, and reports of a U.S. Department of Justice probe into potential Medicare fraud. Eli Lilly & Co. also detracted from performance, primarily as a result of earnings misses and reduced guidance. Thermo Fisher Scientific Inc., which reduced its guidance due to ongoing weakness in China, macroeconomic headwinds, and the negative impact of new tariffs, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares (6.03 )% 4.45 % 7.17 %
Investor A Shares (with sales charge) (10.95 ) 3.33 6.60
Russell 3000® Index 13.12 15.34 12.21
Russell 3000® Health Care Index (6.31 ) 5.44 7.14
Key Fund statistics
Net Assets $6,446,425,713
Number of Portfolio Holdings 131
Net Investment Advisory Fees $52,207,307
Portfolio Turnover Rate 43%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Health Care Equipment & Supplies 29.1 %
Biotechnology 24.9 %
Pharmaceuticals 20.5 %
Health Care Providers & Services 15.2 %
Life Sciences Tools & Services 6.2 %
Financial Services 0.1 %
Short-Term Securities 6.0 %
Liabilities in Excess of Other Assets (2.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Eli Lilly & Co. 8.9 %
Boston Scientific Corp. 6.7 %
AbbVie, Inc. 6.0 %
Abbott Laboratories 5.4 %
UnitedHealth Group, Inc. 4.4 %
Johnson & Johnson 4.1 %
Stryker Corp. 4.0 %
Amgen, Inc. 3.3 %
Intuitive Surgical, Inc. 3.3 %
Edwards Lifesciences Corp. 2.9 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Health Sciences Opportunities Portfolio
Investor A Shares | SHSAX
Annual Shareholder Report — May 31, 2025
SHSAX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Health Sciences Opportunities Portfolio
Investor C Shares | SHSCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Health Sciences Opportunities Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $179 1.85%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned (6.73)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 3000® Health Care Index returned (6.31)%.
What contributed to performance?
Boston Scientific Corp. was the largest contributor to the Fund’s absolute performance. Shares of the biotech company rallied on the strength of revenue and earnings growth that exceeded analysts’ expectations. Abbott Laboratories also contributed to returns due to strong sales and earnings growth, particularly in its medical devices and diabetes care segments, as well as robust performance in diagnostics and emerging markets. Gilead Sciences, Inc. further contributed to Fund returns. The company delivered strong financial results with upbeat guidance, and it announced positive clinical trial results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
UnitedHealth Group Inc. was the largest detractor. The health insurer’s stock fell due to a combination of surging medical costs, the abrupt resignation of its chief executive officer, the withdrawal of its 2025 earnings guidance, and reports of a U.S. Department of Justice probe into potential Medicare fraud. Eli Lilly & Co. also detracted from performance, primarily as a result of earnings misses and reduced guidance. Thermo Fisher Scientific Inc., which reduced its guidance due to ongoing weakness in China, macroeconomic headwinds, and the negative impact of new tariffs, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares (6.73 )% 3.67 % 6.55 %
Investor C Shares (with sales charge) (7.57 ) 3.67 6.55
Russell 3000® Index 13.12 15.34 12.21
Russell 3000® Health Care Index (6.31 ) 5.44 7.14
Key Fund statistics
Net Assets $6,446,425,713
Number of Portfolio Holdings 131
Net Investment Advisory Fees $52,207,307
Portfolio Turnover Rate 43%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Health Care Equipment & Supplies 29.1 %
Biotechnology 24.9 %
Pharmaceuticals 20.5 %
Health Care Providers & Services 15.2 %
Life Sciences Tools & Services 6.2 %
Financial Services 0.1 %
Short-Term Securities 6.0 %
Liabilities in Excess of Other Assets (2.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Eli Lilly & Co. 8.9 %
Boston Scientific Corp. 6.7 %
AbbVie, Inc. 6.0 %
Abbott Laboratories 5.4 %
UnitedHealth Group, Inc. 4.4 %
Johnson & Johnson 4.1 %
Stryker Corp. 4.0 %
Amgen, Inc. 3.3 %
Intuitive Surgical, Inc. 3.3 %
Edwards Lifesciences Corp. 2.9 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Health Sciences Opportunities Portfolio
Investor C Shares | SHSCX
Annual Shareholder Report — May 31, 2025
SHSCX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Health Sciences Opportunities Portfolio
Class K Shares | SHSKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Health Sciences Opportunities Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $73 0.75%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned (5.71)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 3000® Health Care Index returned (6.31)%.
What contributed to performance?
Boston Scientific Corp. was the largest contributor to the Fund’s absolute performance. Shares of the biotech company rallied on the strength of revenue and earnings growth that exceeded analysts’ expectations. Abbott Laboratories also contributed to returns due to strong sales and earnings growth, particularly in its medical devices and diabetes care segments, as well as robust performance in diagnostics and emerging markets. Gilead Sciences, Inc. further contributed to Fund returns. The company delivered strong financial results with upbeat guidance, and it announced positive clinical trial results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
UnitedHealth Group Inc. was the largest detractor. The health insurer’s stock fell due to a combination of surging medical costs, the abrupt resignation of its chief executive officer, the withdrawal of its 2025 earnings guidance, and reports of a U.S. Department of Justice probe into potential Medicare fraud. Eli Lilly & Co. also detracted from performance, primarily as a result of earnings misses and reduced guidance. Thermo Fisher Scientific Inc., which reduced its guidance due to ongoing weakness in China, macroeconomic headwinds, and the negative impact of new tariffs, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares (5.71 )% 4.81 % 7.52 %
Russell 3000® Index 13.12 15.34 12.21
Russell 3000® Health Care Index (6.31 ) 5.44 7.14
Key Fund statistics
Net Assets $6,446,425,713
Number of Portfolio Holdings 131
Net Investment Advisory Fees $52,207,307
Portfolio Turnover Rate 43%
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Performance shown prior to the Class K Shares inception date of June 8, 2016 is that of Investor A Shares. The performance of the Class K Shares would be substantially similar to Investor A Shares because Class K Shares and Investor A Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Investor A Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Investor A Shares because Class K Shares have lower expenses than the Investor A Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Health Care Equipment & Supplies 29.1 %
Biotechnology 24.9 %
Pharmaceuticals 20.5 %
Health Care Providers & Services 15.2 %
Life Sciences Tools & Services 6.2 %
Financial Services 0.1 %
Short-Term Securities 6.0 %
Liabilities in Excess of Other Assets (2.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Eli Lilly & Co. 8.9 %
Boston Scientific Corp. 6.7 %
AbbVie, Inc. 6.0 %
Abbott Laboratories 5.4 %
UnitedHealth Group, Inc. 4.4 %
Johnson & Johnson 4.1 %
Stryker Corp. 4.0 %
Amgen, Inc. 3.3 %
Intuitive Surgical, Inc. 3.3 %
Edwards Lifesciences Corp. 2.9 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Health Sciences Opportunities Portfolio
Class K Shares | SHSKX
Annual Shareholder Report — May 31, 2025
SHSKX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Health Sciences Opportunities Portfolio
Class R Shares | BHSRX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Health Sciences Opportunities Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class R Shares $139 1.44%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class R Shares returned (6.36)%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 3000® Health Care Index returned (6.31)%.
What contributed to performance?
Boston Scientific Corp. was the largest contributor to the Fund’s absolute performance. Shares of the biotech company rallied on the strength of revenue and earnings growth that exceeded analysts’ expectations. Abbott Laboratories also contributed to returns due to strong sales and earnings growth, particularly in its medical devices and diabetes care segments, as well as robust performance in diagnostics and emerging markets. Gilead Sciences, Inc. further contributed to Fund returns. The company delivered strong financial results with upbeat guidance, and it announced positive clinical trial results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
UnitedHealth Group Inc. was the largest detractor. The health insurer’s stock fell due to a combination of surging medical costs, the abrupt resignation of its chief executive officer, the withdrawal of its 2025 earnings guidance, and reports of a U.S. Department of Justice probe into potential Medicare fraud. Eli Lilly & Co. also detracted from performance, primarily as a result of earnings misses and reduced guidance. Thermo Fisher Scientific Inc., which reduced its guidance due to ongoing weakness in China, macroeconomic headwinds, and the negative impact of new tariffs, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class R Shares (6.36 )% 4.08 % 6.81 %
Russell 3000® Index 13.12 15.34 12.21
Russell 3000® Health Care Index (6.31 ) 5.44 7.14
Key Fund statistics
Net Assets $6,446,425,713
Number of Portfolio Holdings 131
Net Investment Advisory Fees $52,207,307
Portfolio Turnover Rate 43%
Average annual total returns reflect reductions for distribution and service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Health Care Equipment & Supplies 29.1 %
Biotechnology 24.9 %
Pharmaceuticals 20.5 %
Health Care Providers & Services 15.2 %
Life Sciences Tools & Services 6.2 %
Financial Services 0.1 %
Short-Term Securities 6.0 %
Liabilities in Excess of Other Assets (2.0 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Eli Lilly & Co. 8.9 %
Boston Scientific Corp. 6.7 %
AbbVie, Inc. 6.0 %
Abbott Laboratories 5.4 %
UnitedHealth Group, Inc. 4.4 %
Johnson & Johnson 4.1 %
Stryker Corp. 4.0 %
Amgen, Inc. 3.3 %
Intuitive Surgical, Inc. 3.3 %
Edwards Lifesciences Corp. 2.9 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Health Sciences Opportunities Portfolio
Class R Shares | BHSRX
Annual Shareholder Report — May 31, 2025
BHSRX-05/25-AR
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BlackRock High Equity Income Fund
Institutional Shares | BMCIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock High Equity Income Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $87 0.85%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 4.06%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Value Index returned 8.91%.
What contributed to performance?
The Fund utilizes an actively managed large-cap value approach that seeks to generate enhanced yield by combining dividend-paying equities with a single-stock covered call overlay. In doing so, the Fund utilizes derivatives known as equity-linked notes (“ELNs”), debt instruments with the potential for additional payouts tied to the return of a specific stock. The Fund’s primary objective is income generation, targeting a yield of around 8%, while investing in high-quality, attractively valued companies with a consistent dividend history.
Over the period, the use of ELNs had a positive impact on fund performance within the financials, industrials, consumer discretionary, healthcare, utilities, information technology, consumer staples, and communication services sectors.
What detracted from performance?
The use of ELNs had a negative impact on fund performance within the energy, materials, and real estate sectors.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 4.06 % 11.94 % 6.93 %
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Value Index 8.91 13.02 8.60
Key Fund statistics
Net Assets $1,795,170,680
Number of Portfolio Holdings 180
Net Investment Advisory Fees $14,049,604
Portfolio Turnover Rate 130%
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund’s returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock U.S. Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 20.6 %
Health Care 16.1 %
Industrials 12.6 %
Information Technology 11.9 %
Consumer Staples 8.7 %
Communication Services 7.2 %
Consumer Discretionary 6.9 %
Materials 5.9 %
Energy 5.1 %
Utilities 3.8 %
Real Estate 2.8 %
Short-Term Securities 5.0 %
Liabilities in Excess of Other Assets (6.6 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Baxter International, Inc. 2.1 %
Citigroup, Inc. 2.0 %
Comcast Corp., Class A 2.0 %
Cardinal Health, Inc. 1.9 %
First Citizens BancShares, Inc., Class A 1.7 %
WPP PLC 1.7 %
Samsung Electronics Co. Ltd., Registered Shares, GDR 1.6 %
SS&C Technologies Holdings, Inc. 1.5 %
Wells Fargo & Co. 1.5 %
JP Morgan Securities LLC (Wells Fargo & Co.), Series N0Q2 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock High Equity Income Fund
Institutional Shares | BMCIX
Annual Shareholder Report — May 31, 2025
BMCIX-05/25-AR
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BlackRock High Equity Income Fund
Investor A Shares | BMEAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock High Equity Income Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $112 1.10%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 3.81%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Value Index returned 8.91%.
What contributed to performance?
The Fund utilizes an actively managed large-cap value approach that seeks to generate enhanced yield by combining dividend-paying equities with a single-stock covered call overlay. In doing so, the Fund utilizes derivatives known as equity-linked notes (“ELNs”), debt instruments with the potential for additional payouts tied to the return of a specific stock. The Fund’s primary objective is income generation, targeting a yield of around 8%, while investing in high-quality, attractively valued companies with a consistent dividend history.
Over the period, the use of ELNs had a positive impact on fund performance within the financials, industrials, consumer discretionary, healthcare, utilities, information technology, consumer staples, and communication services sectors.
What detracted from performance?
The use of ELNs had a negative impact on fund performance within the energy, materials, and real estate sectors.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 3.81 % 11.65 % 6.64 %
Investor A Shares (with sales charge) (1.64 ) 10.45 6.07
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Value Index 8.91 13.02 8.60
Key Fund statistics
Net Assets $1,795,170,680
Number of Portfolio Holdings 180
Net Investment Advisory Fees $14,049,604
Portfolio Turnover Rate 130%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund’s returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock U.S. Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 20.6 %
Health Care 16.1 %
Industrials 12.6 %
Information Technology 11.9 %
Consumer Staples 8.7 %
Communication Services 7.2 %
Consumer Discretionary 6.9 %
Materials 5.9 %
Energy 5.1 %
Utilities 3.8 %
Real Estate 2.8 %
Short-Term Securities 5.0 %
Liabilities in Excess of Other Assets (6.6 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Baxter International, Inc. 2.1 %
Citigroup, Inc. 2.0 %
Comcast Corp., Class A 2.0 %
Cardinal Health, Inc. 1.9 %
First Citizens BancShares, Inc., Class A 1.7 %
WPP PLC 1.7 %
Samsung Electronics Co. Ltd., Registered Shares, GDR 1.6 %
SS&C Technologies Holdings, Inc. 1.5 %
Wells Fargo & Co. 1.5 %
JP Morgan Securities LLC (Wells Fargo & Co.), Series N0Q2 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock High Equity Income Fund
Investor A Shares | BMEAX
Annual Shareholder Report — May 31, 2025
BMEAX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock High Equity Income Fund
Investor C Shares | BMECX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock High Equity Income Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $188 1.85%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned 3.01%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Value Index returned 8.91%.
What contributed to performance?
The Fund utilizes an actively managed large-cap value approach that seeks to generate enhanced yield by combining dividend-paying equities with a single-stock covered call overlay. In doing so, the Fund utilizes derivatives known as equity-linked notes (“ELNs”), debt instruments with the potential for additional payouts tied to the return of a specific stock. The Fund’s primary objective is income generation, targeting a yield of around 8%, while investing in high-quality, attractively valued companies with a consistent dividend history.
Over the period, the use of ELNs had a positive impact on fund performance within the financials, industrials, consumer discretionary, healthcare, utilities, information technology, consumer staples, and communication services sectors.
What detracted from performance?
The use of ELNs had a negative impact on fund performance within the energy, materials, and real estate sectors.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 3.01 % 10.81 % 6.01 %
Investor C Shares (with sales charge) 2.05 10.81 6.01
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Value Index 8.91 13.02 8.60
Key Fund statistics
Net Assets $1,795,170,680
Number of Portfolio Holdings 180
Net Investment Advisory Fees $14,049,604
Portfolio Turnover Rate 130%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund’s returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock U.S. Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 20.6 %
Health Care 16.1 %
Industrials 12.6 %
Information Technology 11.9 %
Consumer Staples 8.7 %
Communication Services 7.2 %
Consumer Discretionary 6.9 %
Materials 5.9 %
Energy 5.1 %
Utilities 3.8 %
Real Estate 2.8 %
Short-Term Securities 5.0 %
Liabilities in Excess of Other Assets (6.6 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Baxter International, Inc. 2.1 %
Citigroup, Inc. 2.0 %
Comcast Corp., Class A 2.0 %
Cardinal Health, Inc. 1.9 %
First Citizens BancShares, Inc., Class A 1.7 %
WPP PLC 1.7 %
Samsung Electronics Co. Ltd., Registered Shares, GDR 1.6 %
SS&C Technologies Holdings, Inc. 1.5 %
Wells Fargo & Co. 1.5 %
JP Morgan Securities LLC (Wells Fargo & Co.), Series N0Q2 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock High Equity Income Fund
Investor C Shares | BMECX
Annual Shareholder Report — May 31, 2025
BMECX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock High Equity Income Fund
Class K Shares | BHEIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock High Equity Income Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $82 0.80%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 4.11%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell 1000® Value Index returned 8.91%.
What contributed to performance?
The Fund utilizes an actively managed large-cap value approach that seeks to generate enhanced yield by combining dividend-paying equities with a single-stock covered call overlay. In doing so, the Fund utilizes derivatives known as equity-linked notes (“ELNs”), debt instruments with the potential for additional payouts tied to the return of a specific stock. The Fund’s primary objective is income generation, targeting a yield of around 8%, while investing in high-quality, attractively valued companies with a consistent dividend history.
Over the period, the use of ELNs had a positive impact on fund performance within the financials, industrials, consumer discretionary, healthcare, utilities, information technology, consumer staples, and communication services sectors.
What detracted from performance?
The use of ELNs had a negative impact on fund performance within the energy, materials, and real estate sectors.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 4.11 % 11.98 % 6.95 %
Russell 1000® Index 13.73 15.66 12.58
Russell 1000® Value Index 8.91 13.02 8.60
Key Fund statistics
Net Assets $1,795,170,680
Number of Portfolio Holdings 180
Net Investment Advisory Fees $14,049,604
Portfolio Turnover Rate 130%
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
The Fund’s returns shown prior to June 12, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock U.S. Opportunities Portfolio.
Performance shown prior to the Class K Shares inception date of April 21, 2020 is that of Institutional Shares. The performance of the Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Financials 20.6 %
Health Care 16.1 %
Industrials 12.6 %
Information Technology 11.9 %
Consumer Staples 8.7 %
Communication Services 7.2 %
Consumer Discretionary 6.9 %
Materials 5.9 %
Energy 5.1 %
Utilities 3.8 %
Real Estate 2.8 %
Short-Term Securities 5.0 %
Liabilities in Excess of Other Assets (6.6 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Baxter International, Inc. 2.1 %
Citigroup, Inc. 2.0 %
Comcast Corp., Class A 2.0 %
Cardinal Health, Inc. 1.9 %
First Citizens BancShares, Inc., Class A 1.7 %
WPP PLC 1.7 %
Samsung Electronics Co. Ltd., Registered Shares, GDR 1.6 %
SS&C Technologies Holdings, Inc. 1.5 %
Wells Fargo & Co. 1.5 %
JP Morgan Securities LLC (Wells Fargo & Co.), Series N0Q2 1.3 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock High Equity Income Fund
Class K Shares | BHEIX
Annual Shareholder Report — May 31, 2025
BHEIX-05/25-AR
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BlackRock Mid-Cap Growth Equity Portfolio
Institutional Shares | CMGIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Mid-Cap Growth Equity Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $84 0.80%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 9.90%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell Midcap® Growth Index returned 23.23%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, financials and consumer discretionary sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In financials, positioning in capital markets was most additive, led by exposure to a financial technology platform. Finally, in consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the healthcare, utilities and materials sectors. In healthcare, positioning in the life sciences tools and services industry detracted, in particular exposure to a provider of pharmaceutical packaging. In utilities, positioning in independent power and renewable electricity providers weighed on return, most notably holdings of a power generation company. Finally, in materials, positioning in the construction materials industry detracted, most notably holdings of a construction company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 9.90 % 6.52 % 10.61 %
Russell 1000® Index 13.73 15.66 12.58
Russell Midcap® Growth Index 23.23 12.22 11.47
Key Fund statistics
Net Assets $8,649,804,136
Number of Portfolio Holdings 70
Net Investment Advisory Fees $64,983,827
Portfolio Turnover Rate 87%
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 33.3 %
Industrials 20.3 %
Financials 14.0 %
Health Care 12.6 %
Consumer Discretionary 9.9 %
Communication Services 6.9 %
Real Estate 1.5 %
Energy 1.5 %
Materials 0.5 %
Short-Term Securities 4.0 %
Liabilities in Excess of Other Assets (4.5 )%
Ten largest holdings
Security(b) Percent of
Net Assets
AppLovin Corp., Class A 6.2 %
Palantir Technologies, Inc., Class A 5.8 %
Axon Enterprise, Inc. 4.5 %
Vertiv Holdings Co., Class A 3.4 %
HEICO Corp. 3.3 %
Dexcom, Inc. 3.3 %
Ares Management Corp., Class A 3.1 %
Cloudflare, Inc., Class A 3.0 %
Howmet Aerospace, Inc. 2.8 %
Live Nation Entertainment, Inc. 2.8 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Mid-Cap Growth Equity Portfolio
Institutional Shares | CMGIX
Annual Shareholder Report — May 31, 2025
CMGIX-05/25-AR
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BlackRock Mid-Cap Growth Equity Portfolio
Service Shares | CMGSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Mid-Cap Growth Equity Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Service Shares $110 1.05%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Service Shares returned 9.58%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell Midcap® Growth Index returned 23.23%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, financials and consumer discretionary sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In financials, positioning in capital markets was most additive, led by exposure to a financial technology platform. Finally, in consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the healthcare, utilities and materials sectors. In healthcare, positioning in the life sciences tools and services industry detracted, in particular exposure to a provider of pharmaceutical packaging. In utilities, positioning in independent power and renewable electricity providers weighed on return, most notably holdings of a power generation company. Finally, in materials, positioning in the construction materials industry detracted, most notably holdings of a construction company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Service Shares 9.58 % 6.26 % 10.34 %
Russell 1000® Index 13.73 15.66 12.58
Russell Midcap® Growth Index 23.23 12.22 11.47
Key Fund statistics
Net Assets $8,649,804,136
Number of Portfolio Holdings 70
Net Investment Advisory Fees $64,983,827
Portfolio Turnover Rate 87%
Average annual total returns reflect reductions for service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 33.3 %
Industrials 20.3 %
Financials 14.0 %
Health Care 12.6 %
Consumer Discretionary 9.9 %
Communication Services 6.9 %
Real Estate 1.5 %
Energy 1.5 %
Materials 0.5 %
Short-Term Securities 4.0 %
Liabilities in Excess of Other Assets (4.5 )%
Ten largest holdings
Security(b) Percent of
Net Assets
AppLovin Corp., Class A 6.2 %
Palantir Technologies, Inc., Class A 5.8 %
Axon Enterprise, Inc. 4.5 %
Vertiv Holdings Co., Class A 3.4 %
HEICO Corp. 3.3 %
Dexcom, Inc. 3.3 %
Ares Management Corp., Class A 3.1 %
Cloudflare, Inc., Class A 3.0 %
Howmet Aerospace, Inc. 2.8 %
Live Nation Entertainment, Inc. 2.8 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Mid-Cap Growth Equity Portfolio
Service Shares | CMGSX
Annual Shareholder Report — May 31, 2025
CMGSX-05/25-AR
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BlackRock Mid-Cap Growth Equity Portfolio
Investor A Shares | BMGAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Mid-Cap Growth Equity Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $110 1.05%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 9.61%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell Midcap® Growth Index returned 23.23%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, financials and consumer discretionary sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In financials, positioning in capital markets was most additive, led by exposure to a financial technology platform. Finally, in consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the healthcare, utilities and materials sectors. In healthcare, positioning in the life sciences tools and services industry detracted, in particular exposure to a provider of pharmaceutical packaging. In utilities, positioning in independent power and renewable electricity providers weighed on return, most notably holdings of a power generation company. Finally, in materials, positioning in the construction materials industry detracted, most notably holdings of a construction company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 9.61 % 6.26 % 10.30 %
Investor A Shares (with sales charge) 3.85 5.12 9.71
Russell 1000® Index 13.73 15.66 12.58
Russell Midcap® Growth Index 23.23 12.22 11.47
Key Fund statistics
Net Assets $8,649,804,136
Number of Portfolio Holdings 70
Net Investment Advisory Fees $64,983,827
Portfolio Turnover Rate 87%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 33.3 %
Industrials 20.3 %
Financials 14.0 %
Health Care 12.6 %
Consumer Discretionary 9.9 %
Communication Services 6.9 %
Real Estate 1.5 %
Energy 1.5 %
Materials 0.5 %
Short-Term Securities 4.0 %
Liabilities in Excess of Other Assets (4.5 )%
Ten largest holdings
Security(b) Percent of
Net Assets
AppLovin Corp., Class A 6.2 %
Palantir Technologies, Inc., Class A 5.8 %
Axon Enterprise, Inc. 4.5 %
Vertiv Holdings Co., Class A 3.4 %
HEICO Corp. 3.3 %
Dexcom, Inc. 3.3 %
Ares Management Corp., Class A 3.1 %
Cloudflare, Inc., Class A 3.0 %
Howmet Aerospace, Inc. 2.8 %
Live Nation Entertainment, Inc. 2.8 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Mid-Cap Growth Equity Portfolio
Investor A Shares | BMGAX
Annual Shareholder Report — May 31, 2025
BMGAX-05/25-AR
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BlackRock Mid-Cap Growth Equity Portfolio
Investor C Shares | BMGCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Mid-Cap Growth Equity Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $188 1.80%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned 8.82%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell Midcap® Growth Index returned 23.23%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, financials and consumer discretionary sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In financials, positioning in capital markets was most additive, led by exposure to a financial technology platform. Finally, in consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the healthcare, utilities and materials sectors. In healthcare, positioning in the life sciences tools and services industry detracted, in particular exposure to a provider of pharmaceutical packaging. In utilities, positioning in independent power and renewable electricity providers weighed on return, most notably holdings of a power generation company. Finally, in materials, positioning in the construction materials industry detracted, most notably holdings of a construction company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 8.82 % 5.47 % 9.65 %
Investor C Shares (with sales charge) 7.82 5.47 9.65
Russell 1000® Index 13.73 15.66 12.58
Russell Midcap® Growth Index 23.23 12.22 11.47
Key Fund statistics
Net Assets $8,649,804,136
Number of Portfolio Holdings 70
Net Investment Advisory Fees $64,983,827
Portfolio Turnover Rate 87%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 33.3 %
Industrials 20.3 %
Financials 14.0 %
Health Care 12.6 %
Consumer Discretionary 9.9 %
Communication Services 6.9 %
Real Estate 1.5 %
Energy 1.5 %
Materials 0.5 %
Short-Term Securities 4.0 %
Liabilities in Excess of Other Assets (4.5 )%
Ten largest holdings
Security(b) Percent of
Net Assets
AppLovin Corp., Class A 6.2 %
Palantir Technologies, Inc., Class A 5.8 %
Axon Enterprise, Inc. 4.5 %
Vertiv Holdings Co., Class A 3.4 %
HEICO Corp. 3.3 %
Dexcom, Inc. 3.3 %
Ares Management Corp., Class A 3.1 %
Cloudflare, Inc., Class A 3.0 %
Howmet Aerospace, Inc. 2.8 %
Live Nation Entertainment, Inc. 2.8 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Mid-Cap Growth Equity Portfolio
Investor C Shares | BMGCX
Annual Shareholder Report — May 31, 2025
BMGCX-05/25-AR
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BlackRock Mid-Cap Growth Equity Portfolio
Class K Shares | BMGKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Mid-Cap Growth Equity Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $75 0.71%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 9.97%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell Midcap® Growth Index returned 23.23%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, financials and consumer discretionary sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In financials, positioning in capital markets was most additive, led by exposure to a financial technology platform. Finally, in consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the healthcare, utilities and materials sectors. In healthcare, positioning in the life sciences tools and services industry detracted, in particular exposure to a provider of pharmaceutical packaging. In utilities, positioning in independent power and renewable electricity providers weighed on return, most notably holdings of a power generation company. Finally, in materials, positioning in the construction materials industry detracted, most notably holdings of a construction company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 9.97 % 6.62 % 10.70 %
Russell 1000® Index 13.73 15.66 12.58
Russell Midcap® Growth Index 23.23 12.22 11.47
Key Fund statistics
Net Assets $8,649,804,136
Number of Portfolio Holdings 70
Net Investment Advisory Fees $64,983,827
Portfolio Turnover Rate 87%
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
Performance shown prior to the Class K Shares inception date of March 28, 2016 is that of Institutional Shares. The performance of the Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 33.3 %
Industrials 20.3 %
Financials 14.0 %
Health Care 12.6 %
Consumer Discretionary 9.9 %
Communication Services 6.9 %
Real Estate 1.5 %
Energy 1.5 %
Materials 0.5 %
Short-Term Securities 4.0 %
Liabilities in Excess of Other Assets (4.5 )%
Ten largest holdings
Security(b) Percent of
Net Assets
AppLovin Corp., Class A 6.2 %
Palantir Technologies, Inc., Class A 5.8 %
Axon Enterprise, Inc. 4.5 %
Vertiv Holdings Co., Class A 3.4 %
HEICO Corp. 3.3 %
Dexcom, Inc. 3.3 %
Ares Management Corp., Class A 3.1 %
Cloudflare, Inc., Class A 3.0 %
Howmet Aerospace, Inc. 2.8 %
Live Nation Entertainment, Inc. 2.8 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Mid-Cap Growth Equity Portfolio
Class K Shares | BMGKX
Annual Shareholder Report — May 31, 2025
BMGKX-05/25-AR
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BlackRock Mid-Cap Growth Equity Portfolio
Class R Shares | BMRRX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Mid-Cap Growth Equity Portfolio (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class R Shares $136 1.30%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class R Shares returned 9.34%.
  • For the same period, the Fund’s benchmark, the Russell 1000® Index, returned 13.73% and the Russell Midcap® Growth Index returned 23.23%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, financials and consumer discretionary sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In financials, positioning in capital markets was most additive, led by exposure to a financial technology platform. Finally, in consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the healthcare, utilities and materials sectors. In healthcare, positioning in the life sciences tools and services industry detracted, in particular exposure to a provider of pharmaceutical packaging. In utilities, positioning in independent power and renewable electricity providers weighed on return, most notably holdings of a power generation company. Finally, in materials, positioning in the construction materials industry detracted, most notably holdings of a construction company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class R Shares 9.34 % 5.99 % 10.03 %
Russell 1000® Index 13.73 15.66 12.58
Russell Midcap® Growth Index 23.23 12.22 11.47
Key Fund statistics
Net Assets $8,649,804,136
Number of Portfolio Holdings 70
Net Investment Advisory Fees $64,983,827
Portfolio Turnover Rate 87%
Average annual total returns reflect reductions for distribution and service fees.
The Fund has added the Russell 1000® Index in response to new regulatory requirements.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Information Technology 33.3 %
Industrials 20.3 %
Financials 14.0 %
Health Care 12.6 %
Consumer Discretionary 9.9 %
Communication Services 6.9 %
Real Estate 1.5 %
Energy 1.5 %
Materials 0.5 %
Short-Term Securities 4.0 %
Liabilities in Excess of Other Assets (4.5 )%
Ten largest holdings
Security(b) Percent of
Net Assets
AppLovin Corp., Class A 6.2 %
Palantir Technologies, Inc., Class A 5.8 %
Axon Enterprise, Inc. 4.5 %
Vertiv Holdings Co., Class A 3.4 %
HEICO Corp. 3.3 %
Dexcom, Inc. 3.3 %
Ares Management Corp., Class A 3.1 %
Cloudflare, Inc., Class A 3.0 %
Howmet Aerospace, Inc. 2.8 %
Live Nation Entertainment, Inc. 2.8 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Mid-Cap Growth Equity Portfolio
Class R Shares | BMRRX
Annual Shareholder Report — May 31, 2025
BMRRX-05/25-AR
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BlackRock SMID-Cap Growth Equity Fund
Institutional Shares | BSMDX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock SMID-Cap Growth Equity Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $86 0.85%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 2.69%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2500TM Growth Index returned 3.26%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, consumer discretionary and financials sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company. Finally, in financials, positioning in capital markets was most additive, led by exposure to a financial technology platform.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the information technology, healthcare and consumer staples sectors. In information technology, positioning in the semiconductors and semiconductor equipment industry detracted, in particular exposure to a provider of semiconductor materials. In healthcare, positioning in life sciences tools and services weighed on returns, most notably holdings of a pharmaceutical packaging company. Finally, in consumer staples, positioning in the food products industry detracted, most notably holdings of a pet food company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 29, 2021 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year Since Fund
Inception
Institutional Shares 2.69 % (10.48 )%
Russell 3000® Index 13.12 8.66
Russell 2500TM Growth Index 3.26 (2.32 )
Key Fund statistics
Net Assets $10,320,861
Number of Portfolio Holdings 91
Net Investment Advisory Fees $47,699
Portfolio Turnover Rate 36%
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
The Fund commenced operations on June 29, 2021.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Industrials 27.6 %
Information Technology 23.3 %
Consumer Discretionary 18.4 %
Health Care 11.2 %
Financials 8.2 %
Communication Services 6.3 %
Energy 2.8 %
Real Estate 0.8 %
Consumer Staples 0.7 %
Short-Term Securities 0.9 %
Liabilities in Excess of Other Assets (0.2 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Axon Enterprise, Inc. 3.9 %
Comfort Systems U.S.A., Inc. 3.4 %
Duolingo, Inc., Class A 3.1 %
Tradeweb Markets, Inc., Class A 2.7 %
Vertiv Holdings Co., Class A 2.5 %
Carvana Co., Class A 2.4 %
Galderma Group AG 2.4 %
Live Nation Entertainment, Inc. 2.4 %
Liberty Media Corp. - Liberty Formula One, Class C, NVS 2.3 %
Planet Fitness, Inc., Class A 2.2 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Material fund changes
This is a summary of certain and planned changes to the Fund since May 31, 2024.
On February 20, 2025, the Fund’s Board approved the closure of the Fund to new and subsequent investments and thereafter to liquidate the Fund. Accordingly, effective 4:00 p.m. (Eastern time) on June 6, 2025, the Fund no longer accepted orders to purchase Fund shares. On June 13, 2025, all of the assets of the Fund were liquidated completely, the shares of any shareholders were redeemed at the net asset value per share and the Fund was terminated as a series of the Trust.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock SMID-Cap Growth Equity Fund
Institutional Shares | BSMDX
Annual Shareholder Report — May 31, 2025
BSMDX-05/25-AR
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BlackRock SMID-Cap Growth Equity Fund
Investor A Shares | BSDAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock SMID-Cap Growth Equity Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $111 1.10%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 2.47%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2500TM Growth Index returned 3.26%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, consumer discretionary and financials sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company. Finally, in financials, positioning in capital markets was most additive, led by exposure to a financial technology platform.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the information technology, healthcare and consumer staples sectors. In information technology, positioning in the semiconductors and semiconductor equipment industry detracted, in particular exposure to a provider of semiconductor materials. In healthcare, positioning in life sciences tools and services weighed on returns, most notably holdings of a pharmaceutical packaging company. Finally, in consumer staples, positioning in the food products industry detracted, most notably holdings of a pet food company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 29, 2021 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year Since Fund
Inception
Investor A Shares 2.47 % (10.69 )%
Investor A Shares (with sales charge) (2.91 ) (11.91 )
Russell 3000® Index 13.12 8.66
Russell 2500TM Growth Index 3.26 (2.32 )
Key Fund statistics
Net Assets $10,320,861
Number of Portfolio Holdings 91
Net Investment Advisory Fees $47,699
Portfolio Turnover Rate 36%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
The Fund commenced operations on June 29, 2021.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Industrials 27.6 %
Information Technology 23.3 %
Consumer Discretionary 18.4 %
Health Care 11.2 %
Financials 8.2 %
Communication Services 6.3 %
Energy 2.8 %
Real Estate 0.8 %
Consumer Staples 0.7 %
Short-Term Securities 0.9 %
Liabilities in Excess of Other Assets (0.2 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Axon Enterprise, Inc. 3.9 %
Comfort Systems U.S.A., Inc. 3.4 %
Duolingo, Inc., Class A 3.1 %
Tradeweb Markets, Inc., Class A 2.7 %
Vertiv Holdings Co., Class A 2.5 %
Carvana Co., Class A 2.4 %
Galderma Group AG 2.4 %
Live Nation Entertainment, Inc. 2.4 %
Liberty Media Corp. - Liberty Formula One, Class C, NVS 2.3 %
Planet Fitness, Inc., Class A 2.2 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Material fund changes
This is a summary of certain and planned changes to the Fund since May 31, 2024.
On February 20, 2025, the Fund’s Board approved the closure of the Fund to new and subsequent investments and thereafter to liquidate the Fund. Accordingly, effective 4:00 p.m. (Eastern time) on June 6, 2025, the Fund no longer accepted orders to purchase Fund shares. On June 13, 2025, all of the assets of the Fund were liquidated completely, the shares of any shareholders were redeemed at the net asset value per share and the Fund was terminated as a series of the Trust.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock SMID-Cap Growth Equity Fund
Investor A Shares | BSDAX
Annual Shareholder Report — May 31, 2025
BSDAX-05/25-AR
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BlackRock SMID-Cap Growth Equity Fund
Class K Shares | BSDKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock SMID-Cap Growth Equity Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
This report describes changes to the Fund that occurred during the reporting period.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $76 0.75%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 2.77%.
  • For the same period, the Fund’s benchmark, the Russell 3000® Index, returned 13.12% and the Russell 2500TM Growth Index returned 3.26%.
What contributed to performance?
Positive contributions to the Fund’s performance over the period were led by investment decisions in the industrials, consumer discretionary and financials sectors. In industrials, holdings in the aerospace and defense industry proved beneficial, most notably exposure to a provider of public safety equipment. In consumer discretionary, positioning in the diversified consumer services industry contributed, most notably holdings of an educational technology company. Finally, in financials, positioning in capital markets was most additive, led by exposure to a financial technology platform.
What detracted from performance?
The largest detractors from performance over the period were investment decisions in the information technology, healthcare and consumer staples sectors. In information technology, positioning in the semiconductors and semiconductor equipment industry detracted, in particular exposure to a provider of semiconductor materials. In healthcare, positioning in life sciences tools and services weighed on returns, most notably holdings of a pharmaceutical packaging company. Finally, in consumer staples, positioning in the food products industry detracted, most notably holdings of a pet food company.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 29, 2021 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year Since Fund
Inception
Class K Shares 2.77 % (10.39 )%
Russell 3000® Index 13.12 8.66
Russell 2500TM Growth Index 3.26 (2.32 )
Key Fund statistics
Net Assets $10,320,861
Number of Portfolio Holdings 91
Net Investment Advisory Fees $47,699
Portfolio Turnover Rate 36%
The Fund has added the Russell 3000® Index in response to new regulatory requirements.
The Fund commenced operations on June 29, 2021.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Sector(a) Percent of
Net Assets
Industrials 27.6 %
Information Technology 23.3 %
Consumer Discretionary 18.4 %
Health Care 11.2 %
Financials 8.2 %
Communication Services 6.3 %
Energy 2.8 %
Real Estate 0.8 %
Consumer Staples 0.7 %
Short-Term Securities 0.9 %
Liabilities in Excess of Other Assets (0.2 )%
Ten largest holdings
Security(b) Percent of
Net Assets
Axon Enterprise, Inc. 3.9 %
Comfort Systems U.S.A., Inc. 3.4 %
Duolingo, Inc., Class A 3.1 %
Tradeweb Markets, Inc., Class A 2.7 %
Vertiv Holdings Co., Class A 2.5 %
Carvana Co., Class A 2.4 %
Galderma Group AG 2.4 %
Live Nation Entertainment, Inc. 2.4 %
Liberty Media Corp. - Liberty Formula One, Class C, NVS 2.3 %
Planet Fitness, Inc., Class A 2.2 %
​(a)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
Material fund changes
This is a summary of certain and planned changes to the Fund since May 31, 2024.
On February 20, 2025, the Fund’s Board approved the closure of the Fund to new and subsequent investments and thereafter to liquidate the Fund. Accordingly, effective 4:00 p.m. (Eastern time) on June 6, 2025, the Fund no longer accepted orders to purchase Fund shares. On June 13, 2025, all of the assets of the Fund were liquidated completely, the shares of any shareholders were redeemed at the net asset value per share and the Fund was terminated as a series of the Trust.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by FTSE International Limited and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock SMID-Cap Growth Equity Fund
Class K Shares | BSDKX
Annual Shareholder Report — May 31, 2025
BSDKX-05/25-AR
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BlackRock Technology Opportunities Fund
Institutional Shares | BGSIX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Technology Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $99 0.92%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned 16.22%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI All-Country World Information Technology 10/40 Index returned 15.75%.
What contributed to performance?
Broadcom, Inc., which benefited from significant growth in its artificial intelligence (“AI”) chip business as well as the successful integration of an acquisition, was the largest contributor to the Fund’s absolute performance. The semiconductor giant NVIDIA, Inc., which experienced rising demand for its AI-optimized graphics processing units in data centers, was also a top contributor. Spotify SA was an additional contributor of note. Shares of the music streaming application company rose on the strength of its first full year of profitability in 2024, a growing user base, and its efforts to augment monetization through price hikes and new subscription tiers.
What detracted from performance?
Micron Technology, Inc. was the largest detractor from returns. The stock declined as an oversupply of memory chips and slower demand in consumer electronics pressured prices and revenue growth. MongoDB, Inc. also detracted from performance, reflecting slower-than-expected revenue growth and disappointing financial guidance. The semiconductor company ASML NV, which reduced its revenue forecast due to excess semiconductor industry capacity, delayed orders from major clients, and weaker-than-expected demand outside the AI chip segment, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Institutional Shares 16.22 % 14.38 % 18.83 %
MSCI All Country World Index 13.65 13.37 9.25
MSCI All-Country World Information Technology 10/40 Index 15.75 18.64 18.14
MSCI All-Country World Information Technology Index 14.50 19.37 18.38
Key Fund statistics
Net Assets $6,056,850,565
Number of Portfolio Holdings 74
Net Investment Advisory Fees $44,166,278
Portfolio Turnover Rate 52%
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
The Fund’s returns shown prior to December 30, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Science & Technology Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Software 31.1 %
Semiconductors & Semiconductor Equipment 26.9 %
Technology Hardware, Storage & Peripherals 6.8 %
Broadline Retail 6.2 %
Interactive Media & Services 6.0 %
Entertainment 4.9 %
IT Services 4.6 %
Financial Services 3.3 %
Professional Services 2.7 %
Capital Markets 1.4 %
Other# 3.7 %
Short-Term Securities 2.7 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
NVIDIA Corp. 13.0 %
Microsoft Corp. 8.5 %
Broadcom, Inc. 6.7 %
Apple Inc. 5.9 %
Meta Platforms, Inc., Class A 4.6 %
Amazon.com, Inc. 3.2 %
Oracle Corp. 2.9 %
Snowflake, Inc., Class A 2.6 %
Cadence Design Systems, Inc. 2.4 %
Mastercard, Inc., Class A 2.1 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
​#
Ten largest industries are presented. Additional industries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Technology Opportunities Fund
Institutional Shares | BGSIX
Annual Shareholder Report — May 31, 2025
BGSIX-05/25-AR
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BlackRock Technology Opportunities Fund
Service Shares | BSTSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Technology Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Service Shares $126 1.17%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Service Shares returned 15.96%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI All-Country World Information Technology 10/40 Index returned 15.75%.
What contributed to performance?
Broadcom, Inc., which benefited from significant growth in its artificial intelligence (“AI”) chip business as well as the successful integration of an acquisition, was the largest contributor to the Fund’s absolute performance. The semiconductor giant NVIDIA, Inc., which experienced rising demand for its AI-optimized graphics processing units in data centers, was also a top contributor. Spotify SA was an additional contributor of note. Shares of the music streaming application company rose on the strength of its first full year of profitability in 2024, a growing user base, and its efforts to augment monetization through price hikes and new subscription tiers.
What detracted from performance?
Micron Technology, Inc. was the largest detractor from returns. The stock declined as an oversupply of memory chips and slower demand in consumer electronics pressured prices and revenue growth. MongoDB, Inc. also detracted from performance, reflecting slower-than-expected revenue growth and disappointing financial guidance. The semiconductor company ASML NV, which reduced its revenue forecast due to excess semiconductor industry capacity, delayed orders from major clients, and weaker-than-expected demand outside the AI chip segment, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Service Shares 15.96 % 14.10 % 18.54 %
MSCI All Country World Index 13.65 13.37 9.25
MSCI All-Country World Information Technology 10/40 Index 15.75 18.64 18.14
MSCI All-Country World Information Technology Index 14.50 19.37 18.38
Key Fund statistics
Net Assets $6,056,850,565
Number of Portfolio Holdings 74
Net Investment Advisory Fees $44,166,278
Portfolio Turnover Rate 52%
Average annual total returns reflect reductions for service fees.
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
The Fund’s returns shown prior to December 30, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Science & Technology Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Software 31.1 %
Semiconductors & Semiconductor Equipment 26.9 %
Technology Hardware, Storage & Peripherals 6.8 %
Broadline Retail 6.2 %
Interactive Media & Services 6.0 %
Entertainment 4.9 %
IT Services 4.6 %
Financial Services 3.3 %
Professional Services 2.7 %
Capital Markets 1.4 %
Other# 3.7 %
Short-Term Securities 2.7 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
NVIDIA Corp. 13.0 %
Microsoft Corp. 8.5 %
Broadcom, Inc. 6.7 %
Apple Inc. 5.9 %
Meta Platforms, Inc., Class A 4.6 %
Amazon.com, Inc. 3.2 %
Oracle Corp. 2.9 %
Snowflake, Inc., Class A 2.6 %
Cadence Design Systems, Inc. 2.4 %
Mastercard, Inc., Class A 2.1 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
​#
Ten largest industries are presented. Additional industries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock Technology Opportunities Fund
Service Shares | BSTSX
Annual Shareholder Report — May 31, 2025
BSTSX-05/25-AR
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BlackRock Technology Opportunities Fund
Investor A Shares | BGSAX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Technology Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $126 1.17%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned 15.96%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI All-Country World Information Technology 10/40 Index returned 15.75%.
What contributed to performance?
Broadcom, Inc., which benefited from significant growth in its artificial intelligence (“AI”) chip business as well as the successful integration of an acquisition, was the largest contributor to the Fund’s absolute performance. The semiconductor giant NVIDIA, Inc., which experienced rising demand for its AI-optimized graphics processing units in data centers, was also a top contributor. Spotify SA was an additional contributor of note. Shares of the music streaming application company rose on the strength of its first full year of profitability in 2024, a growing user base, and its efforts to augment monetization through price hikes and new subscription tiers.
What detracted from performance?
Micron Technology, Inc. was the largest detractor from returns. The stock declined as an oversupply of memory chips and slower demand in consumer electronics pressured prices and revenue growth. MongoDB, Inc. also detracted from performance, reflecting slower-than-expected revenue growth and disappointing financial guidance. The semiconductor company ASML NV, which reduced its revenue forecast due to excess semiconductor industry capacity, delayed orders from major clients, and weaker-than-expected demand outside the AI chip segment, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor A Shares 15.96 % 14.10 % 18.52 %
Investor A Shares (with sales charge) 9.88 12.87 17.88
MSCI All Country World Index 13.65 13.37 9.25
MSCI All-Country World Information Technology 10/40 Index 15.75 18.64 18.14
MSCI All-Country World Information Technology Index 14.50 19.37 18.38
Key Fund statistics
Net Assets $6,056,850,565
Number of Portfolio Holdings 74
Net Investment Advisory Fees $44,166,278
Portfolio Turnover Rate 52%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
The Fund’s returns shown prior to December 30, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Science & Technology Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Software 31.1 %
Semiconductors & Semiconductor Equipment 26.9 %
Technology Hardware, Storage & Peripherals 6.8 %
Broadline Retail 6.2 %
Interactive Media & Services 6.0 %
Entertainment 4.9 %
IT Services 4.6 %
Financial Services 3.3 %
Professional Services 2.7 %
Capital Markets 1.4 %
Other# 3.7 %
Short-Term Securities 2.7 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
NVIDIA Corp. 13.0 %
Microsoft Corp. 8.5 %
Broadcom, Inc. 6.7 %
Apple Inc. 5.9 %
Meta Platforms, Inc., Class A 4.6 %
Amazon.com, Inc. 3.2 %
Oracle Corp. 2.9 %
Snowflake, Inc., Class A 2.6 %
Cadence Design Systems, Inc. 2.4 %
Mastercard, Inc., Class A 2.1 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
​#
Ten largest industries are presented. Additional industries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Technology Opportunities Fund
Investor A Shares | BGSAX
Annual Shareholder Report — May 31, 2025
BGSAX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Technology Opportunities Fund
Investor C Shares | BGSCX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Technology Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor C Shares $205 1.91%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor C Shares returned 15.15%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI All-Country World Information Technology 10/40 Index returned 15.75%.
What contributed to performance?
Broadcom, Inc., which benefited from significant growth in its artificial intelligence (“AI”) chip business as well as the successful integration of an acquisition, was the largest contributor to the Fund’s absolute performance. The semiconductor giant NVIDIA, Inc., which experienced rising demand for its AI-optimized graphics processing units in data centers, was also a top contributor. Spotify SA was an additional contributor of note. Shares of the music streaming application company rose on the strength of its first full year of profitability in 2024, a growing user base, and its efforts to augment monetization through price hikes and new subscription tiers.
What detracted from performance?
Micron Technology, Inc. was the largest detractor from returns. The stock declined as an oversupply of memory chips and slower demand in consumer electronics pressured prices and revenue growth. MongoDB, Inc. also detracted from performance, reflecting slower-than-expected revenue growth and disappointing financial guidance. The semiconductor company ASML NV, which reduced its revenue forecast due to excess semiconductor industry capacity, delayed orders from major clients, and weaker-than-expected demand outside the AI chip segment, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Investor C Shares 15.15 % 13.26 % 17.81 %
Investor C Shares (with sales charge) 14.15 13.26 17.81
MSCI All Country World Index 13.65 13.37 9.25
MSCI All-Country World Information Technology 10/40 Index 15.75 18.64 18.14
MSCI All-Country World Information Technology Index 14.50 19.37 18.38
Key Fund statistics
Net Assets $6,056,850,565
Number of Portfolio Holdings 74
Net Investment Advisory Fees $44,166,278
Portfolio Turnover Rate 52%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for distribution and service fees.
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
The Fund’s returns shown prior to December 30, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Science & Technology Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Software 31.1 %
Semiconductors & Semiconductor Equipment 26.9 %
Technology Hardware, Storage & Peripherals 6.8 %
Broadline Retail 6.2 %
Interactive Media & Services 6.0 %
Entertainment 4.9 %
IT Services 4.6 %
Financial Services 3.3 %
Professional Services 2.7 %
Capital Markets 1.4 %
Other# 3.7 %
Short-Term Securities 2.7 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
NVIDIA Corp. 13.0 %
Microsoft Corp. 8.5 %
Broadcom, Inc. 6.7 %
Apple Inc. 5.9 %
Meta Platforms, Inc., Class A 4.6 %
Amazon.com, Inc. 3.2 %
Oracle Corp. 2.9 %
Snowflake, Inc., Class A 2.6 %
Cadence Design Systems, Inc. 2.4 %
Mastercard, Inc., Class A 2.1 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
​#
Ten largest industries are presented. Additional industries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Technology Opportunities Fund
Investor C Shares | BGSCX
Annual Shareholder Report — May 31, 2025
BGSCX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Technology Opportunities Fund
Class K Shares | BTEKX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Technology Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $90 0.83%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned 16.33%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI All-Country World Information Technology 10/40 Index returned 15.75%.
What contributed to performance?
Broadcom, Inc., which benefited from significant growth in its artificial intelligence (“AI”) chip business as well as the successful integration of an acquisition, was the largest contributor to the Fund’s absolute performance. The semiconductor giant NVIDIA, Inc., which experienced rising demand for its AI-optimized graphics processing units in data centers, was also a top contributor. Spotify SA was an additional contributor of note. Shares of the music streaming application company rose on the strength of its first full year of profitability in 2024, a growing user base, and its efforts to augment monetization through price hikes and new subscription tiers.
What detracted from performance?
Micron Technology, Inc. was the largest detractor from returns. The stock declined as an oversupply of memory chips and slower demand in consumer electronics pressured prices and revenue growth. MongoDB, Inc. also detracted from performance, reflecting slower-than-expected revenue growth and disappointing financial guidance. The semiconductor company ASML NV, which reduced its revenue forecast due to excess semiconductor industry capacity, delayed orders from major clients, and weaker-than-expected demand outside the AI chip segment, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class K Shares 16.33 % 14.47 % 18.88 %
MSCI All Country World Index 13.65 13.37 9.25
MSCI All-Country World Information Technology 10/40 Index 15.75 18.64 18.14
MSCI All-Country World Information Technology Index 14.50 19.37 18.38
Key Fund statistics
Net Assets $6,056,850,565
Number of Portfolio Holdings 74
Net Investment Advisory Fees $44,166,278
Portfolio Turnover Rate 52%
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
The Fund’s returns shown prior to December 30, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Science & Technology Opportunities Portfolio.
Performance shown prior to the Class K Shares inception date of December 10, 2019 is that of Institutional Shares. The performance of the Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Software 31.1 %
Semiconductors & Semiconductor Equipment 26.9 %
Technology Hardware, Storage & Peripherals 6.8 %
Broadline Retail 6.2 %
Interactive Media & Services 6.0 %
Entertainment 4.9 %
IT Services 4.6 %
Financial Services 3.3 %
Professional Services 2.7 %
Capital Markets 1.4 %
Other# 3.7 %
Short-Term Securities 2.7 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
NVIDIA Corp. 13.0 %
Microsoft Corp. 8.5 %
Broadcom, Inc. 6.7 %
Apple Inc. 5.9 %
Meta Platforms, Inc., Class A 4.6 %
Amazon.com, Inc. 3.2 %
Oracle Corp. 2.9 %
Snowflake, Inc., Class A 2.6 %
Cadence Design Systems, Inc. 2.4 %
Mastercard, Inc., Class A 2.1 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
​#
Ten largest industries are presented. Additional industries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Technology Opportunities Fund
Class K Shares | BTEKX
Annual Shareholder Report — May 31, 2025
BTEKX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock Technology Opportunities Fund
Class R Shares | BGSRX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock Technology Opportunities Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class R Shares $153 1.42%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class R Shares returned 15.68%.
  • For the same period, the Fund’s benchmark, the MSCI All Country World Index, returned 13.65% and the MSCI All-Country World Information Technology 10/40 Index returned 15.75%.
What contributed to performance?
Broadcom, Inc., which benefited from significant growth in its artificial intelligence (“AI”) chip business as well as the successful integration of an acquisition, was the largest contributor to the Fund’s absolute performance. The semiconductor giant NVIDIA, Inc., which experienced rising demand for its AI-optimized graphics processing units in data centers, was also a top contributor. Spotify SA was an additional contributor of note. Shares of the music streaming application company rose on the strength of its first full year of profitability in 2024, a growing user base, and its efforts to augment monetization through price hikes and new subscription tiers.
What detracted from performance?
Micron Technology, Inc. was the largest detractor from returns. The stock declined as an oversupply of memory chips and slower demand in consumer electronics pressured prices and revenue growth. MongoDB, Inc. also detracted from performance, reflecting slower-than-expected revenue growth and disappointing financial guidance. The semiconductor company ASML NV, which reduced its revenue forecast due to excess semiconductor industry capacity, delayed orders from major clients, and weaker-than-expected demand outside the AI chip segment, was another detractor of note.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 1, 2015 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year 5 Years 10 Years
Class R Shares 15.68 % 13.81 % 18.22 %
MSCI All Country World Index 13.65 13.37 9.25
MSCI All-Country World Information Technology 10/40 Index 15.75 18.64 18.14
MSCI All-Country World Information Technology Index 14.50 19.37 18.38
Key Fund statistics
Net Assets $6,056,850,565
Number of Portfolio Holdings 74
Net Investment Advisory Fees $44,166,278
Portfolio Turnover Rate 52%
Average annual total returns reflect reductions for distribution and service fees.
The Fund has added the MSCI All Country World Index in response to new regulatory requirements.
The Fund’s returns shown prior to December 30, 2017, are the returns of the Fund when it followed different investment strategies under the name BlackRock Science & Technology Opportunities Portfolio.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Industry allocation
Industry(a) Percent of
Net Assets
Software 31.1 %
Semiconductors & Semiconductor Equipment 26.9 %
Technology Hardware, Storage & Peripherals 6.8 %
Broadline Retail 6.2 %
Interactive Media & Services 6.0 %
Entertainment 4.9 %
IT Services 4.6 %
Financial Services 3.3 %
Professional Services 2.7 %
Capital Markets 1.4 %
Other# 3.7 %
Short-Term Securities 2.7 %
Liabilities in Excess of Other Assets (0.3 )%
Ten largest holdings
Security(b) Percent of
Net Assets
NVIDIA Corp. 13.0 %
Microsoft Corp. 8.5 %
Broadcom, Inc. 6.7 %
Apple Inc. 5.9 %
Meta Platforms, Inc., Class A 4.6 %
Amazon.com, Inc. 3.2 %
Oracle Corp. 2.9 %
Snowflake, Inc., Class A 2.6 %
Cadence Design Systems, Inc. 2.4 %
Mastercard, Inc., Class A 2.1 %
​(a)
For purposes of this report, industry sub-classifications may differ from those utilized by the Fund for compliance purposes.
​(b)
Excludes short-term securities.
​#
Ten largest industries are presented. Additional industries are found in Other.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by MSCI Inc. and its affiliates, nor does this company make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the company listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock Technology Opportunities Fund
Class R Shares | BGSRX
Annual Shareholder Report — May 31, 2025
BGSRX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock U.S. Insights Long/Short Equity Fund
Institutional Shares | BILSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock U.S. Insights Long/Short Equity Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Institutional Shares $158 1.61%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Institutional Shares returned (4.16)%.
  • For the same period, the Fund’s benchmark, the S&P 500® Index, returned 13.52%, and the Fund's customized benchmark, comprised of 50% S&P 500 Index and 50% ICE BofA 3 Month Treasury Bill Index returned 9.24%.
What contributed to performance?
Stock selection in financials, which was driven by fundamental quality measures and insights that evaluate sentiment among analysts and informed investors, contributed to absolute performance. The Fund used derivatives to implement its stock selection strategy. This aspect of the Fund’s positioning marginally contributed to results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s holdings in consumer-related stocks posted negative absolute returns, due primarily to a tilt toward companies that focus on less affluent customers. Positioning in the healthcare sector also detracted, as certain holdings were adversely affected by headline events such as the presidential election result and the death of United Health Care’s chief executive officer. Stock selection in the artificial intelligence (“AI”) theme also detracted as the Fund’s positioning in this area, which was driven by company fundamentals, was out of step with the speculative environment. Specifically, the Fund was hurt by a short position in International Business Machines Corp.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 13, 2023 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year Since Fund
Inception
Institutional Shares (4.16 )% 8.14 %
S&P 500® Index 13.52 18.32
50% S&P 500 Index/50% ICE BofA 3-Month U.S. Treasury Bill Index 9.24 11.75
Key Fund statistics
Net Assets $11,827,528
Number of Portfolio Holdings 636
Net Investment Advisory Fees $0
Portfolio Turnover Rate 313%
The Fund commenced operations on June 13, 2023.
On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Percent of Total Investments(a)
Sector(b) Long Short Total
Information Technology 12.7 % 6.0 % 18.7 %
Financials 9.5 % 7.6 % 17.1 %
Health Care 9.2 % 6.6 % 15.8 %
Industrials 7.7 % 6.2 % 13.9 %
Energy 5.0 % 4.0 % 9.0 %
Consumer Discretionary 4.8 % 1.8 % 6.6 %
Utilities 3.0 % 2.6 % 5.6 %
Communication Services 3.8 % 0.9 % 4.7 %
Real Estate 1.8 % 1.9 % 3.7 %
Consumer Staples 1.6 % 1.8 % 3.4 %
Materials 0.8 % 0.7 % 1.5 %
59.9 40.1 100.0
​(a)
Includes the gross market value of long and short securities of the underlying derivative contracts and excludes short-term securities and options, if any.
​(b)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by ICE Data Indices, LLC, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
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BlackRock U.S. Insights Long/Short Equity Fund
Institutional Shares | BILSX
Annual Shareholder Report — May 31, 2025
BILSX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock U.S. Insights Long/Short Equity Fund
Investor A Shares | BALSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock U.S. Insights Long/Short Equity Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Investor A Shares $182 1.86%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Investor A Shares returned (4.27)%.
  • For the same period, the Fund’s benchmark, the S&P 500® Index, returned 13.52%, and the Fund's customized benchmark, comprised of 50% S&P 500 Index and 50% ICE BofA 3 Month Treasury Bill Index returned 9.24%.
What contributed to performance?
Stock selection in financials, which was driven by fundamental quality measures and insights that evaluate sentiment among analysts and informed investors, contributed to absolute performance. The Fund used derivatives to implement its stock selection strategy. This aspect of the Fund’s positioning marginally contributed to results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s holdings in consumer-related stocks posted negative absolute returns, due primarily to a tilt toward companies that focus on less affluent customers. Positioning in the healthcare sector also detracted, as certain holdings were adversely affected by headline events such as the presidential election result and the death of United Health Care’s chief executive officer. Stock selection in the artificial intelligence (“AI”) theme also detracted as the Fund’s positioning in this area, which was driven by company fundamentals, was out of step with the speculative environment. Specifically, the Fund was hurt by a short position in International Business Machines Corp.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 13, 2023 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year Since Fund
Inception
Investor A Shares (4.27 )% 7.92 %
Investor A Shares (with sales charge) (9.30 ) 5.00
S&P 500® Index 13.52 18.32
50% S&P 500 Index/50% ICE BofA 3-Month U.S. Treasury Bill Index 9.24 11.75
Key Fund statistics
Net Assets $11,827,528
Number of Portfolio Holdings 636
Net Investment Advisory Fees $0
Portfolio Turnover Rate 313%
Assuming maximum sales charges. Average annual total returns with and without sales charges reflect reductions for service fees.
The Fund commenced operations on June 13, 2023.
On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Percent of Total Investments(a)
Sector(b) Long Short Total
Information Technology 12.7 % 6.0 % 18.7 %
Financials 9.5 % 7.6 % 17.1 %
Health Care 9.2 % 6.6 % 15.8 %
Industrials 7.7 % 6.2 % 13.9 %
Energy 5.0 % 4.0 % 9.0 %
Consumer Discretionary 4.8 % 1.8 % 6.6 %
Utilities 3.0 % 2.6 % 5.6 %
Communication Services 3.8 % 0.9 % 4.7 %
Real Estate 1.8 % 1.9 % 3.7 %
Consumer Staples 1.6 % 1.8 % 3.4 %
Materials 0.8 % 0.7 % 1.5 %
59.9 40.1 100.0
​(a)
Includes the gross market value of long and short securities of the underlying derivative contracts and excludes short-term securities and options, if any.
​(b)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by ICE Data Indices, LLC, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock U.S. Insights Long/Short Equity Fund
Investor A Shares | BALSX
Annual Shareholder Report — May 31, 2025
BALSX-05/25-AR
TSR - Blackrock Fund Logo
BlackRock U.S. Insights Long/Short Equity Fund
Class K Shares | BKLSX
Annual Shareholder Report — May 31, 2025
This annual shareholder report contains important information about BlackRock U.S. Insights Long/Short Equity Fund (the “Fund”) for the period of June 1, 2024 to May 31, 2025. You can find additional information about the Fund at blackrock.com/fundreports. You can also request this information by contacting us at (800) 441‑7762.
What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)
Class name Costs of a $10,000
investment		 Costs paid as a percentage of a
$10,000 investment
Class K Shares $153 1.56%
How did the Fund perform last year?
  • For the reporting period ended May 31, 2025, the Fund's Class K Shares returned (4.06)%.
  • For the same period, the Fund’s benchmark, the S&P 500® Index, returned 13.52%, and the Fund's customized benchmark, comprised of 50% S&P 500 Index and 50% ICE BofA 3 Month Treasury Bill Index returned 9.24%.
What contributed to performance?
Stock selection in financials, which was driven by fundamental quality measures and insights that evaluate sentiment among analysts and informed investors, contributed to absolute performance. The Fund used derivatives to implement its stock selection strategy. This aspect of the Fund’s positioning marginally contributed to results. The Fund’s cash position had no material impact on performance.
What detracted from performance?
The Fund’s holdings in consumer-related stocks posted negative absolute returns, due primarily to a tilt toward companies that focus on less affluent customers. Positioning in the healthcare sector also detracted, as certain holdings were adversely affected by headline events such as the presidential election result and the death of United Health Care’s chief executive officer. Stock selection in the artificial intelligence (“AI”) theme also detracted as the Fund’s positioning in this area, which was driven by company fundamentals, was out of step with the speculative environment. Specifically, the Fund was hurt by a short position in International Business Machines Corp.
The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.
Fund performance
Cumulative performance: June 13, 2023 through May 31, 2025
Initial investment of $10,000
Fund Performance - Growth of 10K
See “Average annual total returns” for additional information on fund performance.
Average annual total returns
1 Year Since Fund
Inception
Class K Shares (4.06 )% 8.21 %
S&P 500® Index 13.52 18.32
50% S&P 500 Index/50% ICE BofA 3-Month U.S. Treasury Bill Index 9.24 11.75
Key Fund statistics
Net Assets $11,827,528
Number of Portfolio Holdings 636
Net Investment Advisory Fees $0
Portfolio Turnover Rate 313%
The Fund commenced operations on June 13, 2023.
On December 1, 2023, the Fund began to compare its performance to the standard pricing time of the ICE BofA 3-Month U.S. Treasury Bill Index.
Past performance is not an indication of future results. Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or on the redemption or sale of fund shares. Visit blackrock.com for more recent performance information.
What did the Fund invest in?
(as of May 31, 2025)
Sector allocation
Percent of Total Investments(a)
Sector(b) Long Short Total
Information Technology 12.7 % 6.0 % 18.7 %
Financials 9.5 % 7.6 % 17.1 %
Health Care 9.2 % 6.6 % 15.8 %
Industrials 7.7 % 6.2 % 13.9 %
Energy 5.0 % 4.0 % 9.0 %
Consumer Discretionary 4.8 % 1.8 % 6.6 %
Utilities 3.0 % 2.6 % 5.6 %
Communication Services 3.8 % 0.9 % 4.7 %
Real Estate 1.8 % 1.9 % 3.7 %
Consumer Staples 1.6 % 1.8 % 3.4 %
Materials 0.8 % 0.7 % 1.5 %
59.9 40.1 100.0
​(a)
Includes the gross market value of long and short securities of the underlying derivative contracts and excludes short-term securities and options, if any.
​(b)
For purposes of this report, sector sub-classifications may differ from those utilized by the Fund for compliance purposes.
Additional information
If you wish to view additional information about the Fund, including but not limited to financial statements, the Fund’s prospectus, and proxy voting policies and procedures, please visit blackrock.com/fundreports. For proxy voting records, visit blackrock.com/proxyrecords.
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.
The Fund is not sponsored, endorsed, issued, sold, or promoted by ICE Data Indices, LLC, S&P Dow Jones Indices, and their respective affiliates, nor do these companies make any representation regarding the advisability of investing in the Fund. BlackRock is not affiliated with the companies listed above.
©2025 BlackRock, Inc. or its affiliates. All rights reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its affiliates. All other trademarks are those of their respective owners.
TSR - Blackrock Footer Logo
BlackRock U.S. Insights Long/Short Equity Fund
Class K Shares | BKLSX
Annual Shareholder Report — May 31, 2025
BKLSX-05/25-AR

(b) Not Applicable

Item 2 –

Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

 

Item 3 –

Audit Committee Financial Experts – The registrant’s board of trustees (the “board of trustees”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Neil A. Cotty

Henry R. Keizer

Kenneth L. Urish

Under applicable securities laws, a person determined to be an audit committee financial expert will not be deemed an “expert” for any purpose, including without limitation for the purposes of Section 11 of the Securities Act of 1933, as a result of being designated or identified as an audit committee financial expert. The designation or identification of a person as an audit committee financial expert does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations, and liabilities imposed on such person as a member of the audit committee and board of trustees in the absence of such designation or identification. The designation or identification of a person as an audit committee financial expert does not affect the duties, obligations, or liability of any other member of the audit committee or board of trustees.

 

Item 4 –

Principal Accountant Fees and Services

The following table presents fees billed by Deloitte & Touche LLP (“D&T”) in each of the last two fiscal years for the services rendered to the Fund:

 

     (a) Audit Fees    (b) Audit-Related Fees1    (c) Tax Fees2    (d) All Other Fees
Entity Name  

 Current 
Fiscal

Year

End

   

 Previous 
Fiscal

Year

End

   

 Current 
Fiscal

Year

End

   

 Previous 
Fiscal

Year

End

   

 Current 
Fiscal

Year

End

   

 Previous 
Fiscal

Year

End

   

 Current 
Fiscal

Year

End

   

 Previous 
Fiscal

Year

End

BlackRock Advantage International Fund   $33,928    $32,356    $0    $0    $16,300    $16,328    $388    $407
BlackRock Advantage Large Cap Growth Fund   $19,373    $18,476    $0    $0    $15,300    $15,288    $388    $407
BlackRock Advantage Small Cap Core Fund   $31,365    $29,913    $0    $0    $15,300    $15,288    $388    $407
BlackRock Commodity Strategies Fund   $48,073    $45,847    $0    $0    $22,900    $22,880    $388    $407
BlackRock Energy Opportunities Fund   $18,860    $17,987    $0    $0    $15,300    $15,288    $388    $407
BlackRock Health Sciences Opportunities Portfolio   $31,365    $29,913    $0    $0    $15,300    $15,288    $388    $407
BlackRock High Equity Income Fund   $22,755    $21,701    $0    $0    $15,300    $15,288    $388    $407
BlackRock Mid-Cap Growth Equity Portfolio   $19,168    $18,280    $0    $0    $15,300    $15,288    $388    $407
BlackRock SMID-Cap Growth Equity Fund   $19,168    $18,280    $0    $0    $15,300    $15,300    $388    $0
BlackRock Technology Opportunities Fund   $37,618    $35,876    $0    $0    $15,300    $15,288    $388    $407
BlackRock U.S. Insights Long/Short Equity Fund   $41,815    $39,884    $0    $0    $16,300    $16,328    $388    $0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (the “Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with

 

2

BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

 

      Current Fiscal Year End      Previous Fiscal Year End 

(b) Audit-Related Fees1

   $0    $0

(c) Tax Fees2

   $0    $0

(d) All Other Fees3

   $2,149,000    $2,149,000

1 The nature of the services includes assurance and related services reasonably related to the performance of the audit or review of financial statements not included in Audit Fees, including accounting consultations, agreed-upon procedure reports, attestation reports, comfort letters, out-of-pocket expenses and internal control reviews not required by regulators.

2 The nature of the services includes tax compliance and/or tax preparation, including services relating to the filing or amendment of federal, state or local income tax returns, regulated investment company qualification reviews, taxable income and tax distribution calculations.

3 Non-audit fees of $2,149,000 and $2,149,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(e)(1) Audit Committee Pre-Approval Policies and Procedures:

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

Any proposed services exceeding the pre-approved cost levels will require specific pre-approval by the Committee, as will any other services not subject to general pre-approval (e.g., unanticipated but permissible services). The Committee is informed of each service approved subject to general pre-approval at the next regularly scheduled in-person board meeting. At this meeting, an analysis of such services is presented to the Committee for ratification. The Committee may delegate to the Committee Chairman the authority to approve the provision of and fees for any specific engagement of permitted non-audit services, including services exceeding pre-approved cost levels.

(e)(2) None of the services described in each of Items 4(b) through (d) were approved by the Committee pursuant to the de minimis exception in paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

 

3

(f) Not Applicable

(g) The aggregate non-audit fees, defined as the sum of the fees shown under “Audit-Related Fees,” “Tax Fees” and “All Other Fees,” paid to the accountant for services rendered by the accountant to the registrant, the Investment Adviser and the Affiliated Service Providers were:

 

Entity Name    Current Fiscal Year 
End		     Previous Fiscal Year 
End
BlackRock Advantage International Fund   $16,688    $16,735
BlackRock Advantage Large Cap Growth Fund   $15,688    $15,695
BlackRock Advantage Small Cap Core Fund   $15,688    $15,695
BlackRock Commodity Strategies Fund   $23,288    $23,287
BlackRock Energy Opportunities Fund   $15,688    $15,695
BlackRock Health Sciences Opportunities Portfolio   $15,688    $15,695
BlackRock High Equity Income Fund   $15,688    $15,695
BlackRock Mid-Cap Growth Equity Portfolio   $15,688    $15,695
BlackRock SMID-Cap Growth Equity Fund   $15,688    $15,300
BlackRock Technology Opportunities Fund   $15,688    $15,695
BlackRock U.S. Insights Long/Short Equity Fund   $16,688    $16,328

Additionally, the amounts billed by D&T in connection with services provided to the Affiliated Service Providers of the Fund and of other funds sponsored and advised by BlackRock or its affiliates during the current and previous fiscal years for a service organization review and an accounting research tool subscription were:

 

 Current Fiscal Year 

End

  

 Previous Fiscal Year 

End

$2,149,000

   $2,149,000

These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

(h) The Committee has considered and determined that the provision of non-audit services that were rendered to the Investment Adviser and the Affiliated Service Providers that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence.

(i) – Not Applicable

(j) – Not Applicable

 

Item 5 –

Audit Committee of Listed Registrant – Not Applicable

 

Item 6 –

Investments

(a) The registrant’s Schedule of Investments is included as part of the Financial Statement and Financial Highlights for Open-End Management Investment Companies filed under Item 7 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 –

Financial Statements and Financial Highlights for Open-End Management Investment Companies

(a) The registrant’s Financial Statements are attached herewith.

(b) The registrant’s Financial Highlights are attached herewith.

 

 

4

 

LOGO

  MAY 31, 2025

 

  

2025 Annual Financial Statements

and Additional Information

 

BlackRock FundsSM

 

·  

BlackRock Commodity Strategies Fund

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

Table of Contents

 

      Page  

Derivative Financial Instruments

      3  

Consolidated Schedule of Investments

      4  

Consolidated Statement of Assets and Liabilities

      12  

Consolidated Statement of Operations

      14  

Consolidated Statements of Changes in Net Assets

      15  

Consolidated Financial Highlights

      16  

Notes to Consolidated Financial Statements

      20  

Report of Independent Registered Public Accounting Firm

      31  

Important Tax Information

      32  

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

      33  

Additional Information

      36  

Glossary of Terms Used in these Financial Statements

      38  

 

2

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 assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Fund must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Consolidated Financial Statements.

 

D E R I V A T I V E F I N A N C I A L I N S T R U M E N T S   3

Consolidated Schedule of Investments

May 31, 2025

   

BlackRock Commodity Strategies Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Chemicals — 9.9%  

CF Industries Holdings, Inc.

     51,756     $ 4,694,787  

Corteva, Inc.

     305,833       21,652,976  

Mosaic Co. (The)

     218,144       7,883,724  

Nutrien Ltd.

     466,826       27,556,739  
   

 

 

  
       61,788,226  
Containers & Packaging — 5.9%            

Graphic Packaging Holding Co.

     367,689       8,170,050  

International Paper Co.

     113,908       5,445,941  

Packaging Corp. of America

     51,485       9,945,357  

Smurfit WestRock PLC

     302,038       13,087,307  
   

 

 

  
      36,648,655  
Energy Equipment & Services — 0.4%            

TechnipFMC PLC

     52,266       1,628,086  

Tenaris SA

     34,188       572,563  
   

 

 

  
      2,200,649  
Metals & Mining — 19.1%            

Agnico Eagle Mines Ltd.

     83,440       9,835,748  

Alamos Gold, Inc., Class A

     97,641       2,528,627  

Alcoa Corp.

     7,995       214,026  

Allied Gold Corp.(a)(b)

     60,407       865,378  

Anglo American PLC

     74,864       2,220,417  

Anglogold Ashanti PLC

     77,625       3,400,751  

ArcelorMittal SA

     38,859       1,178,119  

Artemis Gold, Inc.(a)

     54,008       860,681  

Aya Gold & Silver, Inc.(a)

     37,123       319,198  

B2Gold Corp.

     86,853       291,757  

Barrick Mining Corp.

     208,899       4,002,505  

Bellevue Gold Ltd.(a)

     1,241,388       798,241  

BHP Group Ltd.

     157,675       3,873,288  

Blackstone Minerals Ltd.(a)(b)

     849,513       41,070  

Capricorn Metals Ltd.(a)

     70,516       445,958  

Capstone Copper Corp.(a)

     62,371       338,136  

Centerra Gold, Inc.

     78,308       558,630  

Chalice Mining Ltd.(a)(b)

     86,228       64,337  

Challenger Gold Ltd.(a)(b)

     1,264,054       78,465  

Champion Iron Ltd.

     79,887       223,163  

Develop Global Ltd.(a)

     508,671       1,314,168  

Discovery Silver Corp.(a)(b)

     403,781       959,177  

Dundee Precious Metals, Inc.

     105,861       1,631,479  

Eldorado Gold Corp.(a)(b)

     122,987       2,470,809  

Emerald Resources NL(a)

     188,015       578,577  

Endeavour Mining PLC

     158,500       4,858,888  

ERO Copper Corp.(a)(b)

     9,170       129,497  

FireFly Metals Ltd.(a)

     421,590       296,688  

First Quantum Minerals Ltd.(a)

     37,332       553,036  

Foran Mining Corp.(a)(b)

     379,975       827,868  

Founders Metals, Inc.(a)

     230,890       736,910  

Founders Metals, Inc.(a)(b)

     17,684       56,440  

Franco-Nevada Corp.

     11,898       2,004,198  

Freeport-McMoRan, Inc.

     69,822       2,686,751  

G Mining Ventures Corp.(a)(b)

     107,483       1,592,254  

Glencore PLC

     694,519       2,642,606  

Gold Fields Ltd., ADR

     49,001       1,127,023  

Grupo Mexico SAB de CV, Series B

     136,329       753,338  

IAMGOLD Corp.(a)(b)

     165,429       1,134,843  

Iluka Resources Ltd.

     34,750       82,237  

Ivanhoe Electric, Inc.(a)(b)

     18,947       139,260  

Ivanhoe Mines Ltd., Class A(a)

     173,254       1,341,997  

Kinross Gold Corp.

     527,063       7,781,030  

Lithium Royalty Corp.(a)(b)

     52,658       197,609  
Security   Shares     Value  
Metals & Mining (continued)            

Lundin Gold, Inc.

     76,790     $ 3,710,384  

Lundin Mining Corp.

     33,590       317,947  

Lynas Rare Earths Ltd.(a)

     132,458       681,095  

MAG Silver Corp.

     46,249       868,127  

Metals Acquisition Ltd. (Acquired 04/17/23, cost $615,000)(a)(c)

     70,500       857,280  

Newmont Corp.

     141,152       7,441,533  

NGEx Minerals Ltd.(a)

     35,836       411,017  

Nickel Industries Ltd.

     1,120,175       494,500  

Norsk Hydro ASA

     168,064       921,335  

Northern Star Resources Ltd.

     417,132       5,672,461  

Nucor Corp.

     14,763       1,614,482  

OR Royalties, Inc.

     71,702       1,832,324  

Pan American Silver Corp.

     60,837       1,483,814  

Polyus PJSC(a)(d)

     462,520       6  

Predictive Discovery Ltd.(a)

     2,536,639       631,507  

Reliance, Inc.

     552       161,637  

Rio Tinto PLC

     73,321       4,339,286  

Robex Resources, Inc.(a)(b)

     126,471       308,724  

Rupert Resources Ltd.(a)(b)

     62,411       231,935  

Rupert Resources Ltd. (Acquired 02/24/23, cost $315,608)(a)(c)

     91,372       339,561  

Sigma Lithium Corp.(a)(b)

     64,383       300,721  

Skeena Resources Ltd.(a)(b)

     36,579       468,582  

Sociedad Minera Cerro Verde SAA

     18,601       744,040  

Solaris Resources, Inc.(a)

     63,953       284,267  

Solaris Resources, Inc.(a)

     39,000       173,352  

Southern Copper Corp.

     9,076       825,099  

Steel Dynamics, Inc.

     13,368       1,645,200  

Teck Resources Ltd., Class B

     8,553       316,979  

Titan Mining Corp.(a)

     70,186       29,663  

Titan Mining Corp.(a)

     20,773       8,779  

Torex Gold Resources, Inc.(a)

     47,436       1,522,957  

United States Steel Corp.

     8,943       481,312  

Vale SA, ADR

     353,711       3,229,381  

Valterra Platinum Ltd.

     14,337       563,092  

Wheaton Precious Metals Corp.

     91,128       7,895,967  
   

 

 

  
       118,843,524  
Oil, Gas & Consumable Fuels — 12.1%            

Cameco Corp.

     20,650       1,208,644  

Cameco Corp. (CAD)

     23,615       1,382,467  

Canadian Natural Resources Ltd.

     106,522       3,234,431  

Cheniere Energy, Inc.

     13,522       3,204,579  

Chevron Corp.

     55,283       7,557,186  

ConocoPhillips

     22,909       1,955,283  

EOG Resources, Inc.

     26,153       2,839,431  

EQT Corp.

     33,185       1,829,489  

Exxon Mobil Corp.

     148,900       15,232,470  

Gazprom PJSC(a)(d)

     712,200       92  

Gaztransport Et Technigaz SA

     3,799       705,962  

Hess Corp.

     14,529       1,920,589  

Kinder Morgan, Inc.

     105,328       2,953,397  

Kosmos Energy Ltd.(a)

     198,012       328,700  

Pembina Pipeline Corp.

     39,927       1,496,299  

Permian Resources Corp., Class A

     137,526       1,734,203  

Shell PLC

     245,843       8,111,572  

Suncor Energy, Inc.

     60,428       2,148,346  

Targa Resources Corp.

     14,506       2,290,933  

TC Energy Corp.

     62,596       3,171,877  

TotalEnergies SE

     93,979       5,532,371  

Tourmaline Oil Corp.

     24,110       1,087,133  
 

 

 

4  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

(Percentages shown are based on Net Assets)

 

Security  

 

Shares

     Value  
Oil, Gas & Consumable Fuels (continued)            

Valero Energy Corp.

     17,365     $ 2,239,564  

Williams Cos., Inc. (The)

     52,094       3,152,208  
   

 

 

  
       75,317,226  
Paper & Forest Products — 2.1%            

Mondi PLC

     337,667       5,492,483  

UPM-Kymmene Oyj

     268,327       7,426,552  
   

 

 

  
      12,919,035  
   

 

 

  

Total Common Stocks — 49.5%
(Cost: $239,951,757)

       307,717,315  
   

 

 

  

Rights

    
Metals & Mining — 0.0%            

Kincross Gold Corp., CVR(a)

     11,812       8,387  
   

 

 

  

Total Rights — 0.0%
(Cost: $ —)

       8,387  
   

 

 

  

Warrants(a)

    
Metals & Mining — 0.0%            

Robex Resources, Inc.,
(Issued 07/10/24/Exercisable 07/10/25, 1 Share for 1 Warrant, Expires 06/27/26, Strike Price CAD 2.55)

     124,394       67,982  
   

 

 

  

Total Warrants — 0.0%
(Cost: $2)

       67,982  
   

 

 

  

Total Long-Term Investments — 49.5%
(Cost: $239,951,759)

       307,793,684  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 2.3%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(e)(f)(g)

     6,933,021       6,935,794  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(e)(f)

     7,285,557       7,285,557  
   

 

 

  
      14,221,351  
   

 

 

  
Security          

Par

(000)

      Value  
U.S. Treasury Obligations(h) — 48.5%                

U.S. Treasury Bills, 4.27%, 08/28/25

     USD        305,000      $ 301,874,619  
       

 

 

  

Total Short-Term Securities — 50.8%
(Cost: $316,071,028)

 

         316,095,970  
       

 

 

  

Total Investments — 100.3%
(Cost: $556,022,787)

           623,889,654  
Liabilities in Excess of Other Assets — (0.3)%      (1,984,396)  
       

 

 

  

Net Assets — 100.0%

         $  621,905,258  
       

 

 

  

 

(a)

Non-income producing security.

(b)

All or a portion of this security is on loan.

(c)

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $1,196,841, representing 0.2% of its net assets as of period end, and an original cost of $930,608.

(d)

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

(e)

Affiliate of the Fund.

(f)

Annualized 7-day yield as of period end.

(g)

All or a portion of this security was purchased with the cash collateral from loaned securities.

(h)

Rates are discount rates or a range of discount rates as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		    

Proceeds

from Sales

    

Net

Realized
Gain (Loss)

    

Change in
Unrealized
Appreciation
(Depreciation)

     Value at
05/31/25		     Shares
Held at
05/31/25		     Income    

Capital

Gain
Distributions
from Underlying
Funds

         
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 6,348,465     $  586,708 (a)    $     —     $ 161             $ 460     $ 6,935,794       6,933,021     $ 196,540 (b)    $ —     
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     3,589,797       3,695,760 (a)      —       —         —       7,285,557       7,285,557       363,044       —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     
          $    161       $    460     $  14,221,351       $  559,584     $    —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

 

 

C O N S O L I D A T E D  S C H E D U L E  O F  I N V E S T M E N T S

   5

Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

 

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Derivative Financial Instruments Outstanding as of Period End

OTC Total Return Swaps

    Paid by the Fund           Received by the Fund                 Termination            

Notional

 

Amount

            

 

Upfront

 

Premium

 

Paid

     

Unrealized

 

Appreciation

  
   

 

Rate

         

 

Frequency

           

 

Reference

          

 

Frequency

      Counterparty         Date             (000)      Value     (Received)      (Depreciation)  
   

3-month U.S. Treasury Bill, 4.35%(a)

             Quarterly       BCOMRINT              Quarterly      Goldman Sachs International          07/01/25        USD       5,095      $ (316,982 )    $    —      $ (316,982 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Societe Generale SA        07/01/25        USD       14,386        (577,192 )      —        (577,192 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      JPMorgan Chase Bank N.A.        07/21/25        USD       49,195        (1,214,314 )      —        (1,214,314 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Societe Generale SA        07/21/25        USD       10,382        542,249       —        542,249  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Societe Generale SA        07/21/25        USD       65,639        (2,077,525 )      —        (2,077,525 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        07/31/25        USD       2,015        17,985       —        17,985  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        07/31/25        USD       658        (965 )      —        (965 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        07/31/25        USD       3,421        (71,864 )      —        (71,864 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      JPMorgan Chase Bank N.A.        09/02/25        USD       2,045        (288,239 )      —        (288,239 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Merrill Lynch International        09/03/25        USD       2,254        268,497       —        268,497  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        09/30/25        USD       168        (3,406 )      —        (3,406 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Goldman Sachs International        10/14/25        USD       4,668        89,202       —        89,202  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      JPMorgan Chase Bank N.A.        10/14/25        USD       14,704        (365,206 )      —        (365,206 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        10/29/25        USD       425        (10,106 )      —        (10,106 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        10/29/25        USD       712        (16,951 )      —        (16,951 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        10/29/25        USD       612        (11,966 )      —        (11,966 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Societe Generale SA        10/29/25        USD       434        (6,246 )      —        (6,246 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Societe Generale SA        10/29/25        USD       135        4,868       —        4,868  

 

 

6  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

 

OTC Total Return Swaps (continued)

 

    Paid by the Fund           Received by the Fund                 Termination            

Notional

 

Amount

            

 

Upfront

 

Premium

 

Paid

     

Unrealized

 

Appreciation

  
   

 

Rate

         

 

Frequency

           

 

Reference

          

 

Frequency

      Counterparty         Date             (000)      Value     (Received)      (Depreciation)  
   

3-month U.S. Treasury Bill, 4.35%(a)

             Quarterly       BCOMRENT        Quarterly      JPMorgan Chase Bank N.A.        10/31/25        USD       3,492      $ (4,911 )    $    —      $ (4,911 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International          10/31/25        USD       10,099        (211,072 )      —        (211,072 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Societe Generale SA        10/31/25        USD       2,208        99,574       —        99,574  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Macquarie Bank Ltd.        12/02/25        USD       3,097        (61,603 )      —        (61,603 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Goldman Sachs International        12/22/25        USD       1,012        58,276       —        58,276  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        12/22/25        USD       612        (50,819 )      —        (50,819 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        12/22/25        USD       1,156        (167,005 )      —        (167,005 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        12/22/25        USD       960        (24,788 )      —        (24,788 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Societe Generale SA        12/22/25        USD       203        13,493       —        13,493  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        01/05/26        USD       261        14,597       —        14,597  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        01/05/26        USD       431        (1,129 )      —        (1,129 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        01/20/26        USD       6,232        (181,769 )      —        (181,769 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        01/21/26        USD       249        (835 )      —        (835 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        01/21/26        USD       426        (6,810 )      —        (6,810 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Goldman Sachs International        01/21/26        USD       487        (14,806 )      —        (14,806 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        01/21/26        USD       427        (12,412 )      —        (12,412 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Merrill Lynch International        01/21/26        USD       89        5,589       —        5,589  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        01/26/26        USD       1,354        (49,389 )      —        (49,389 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        01/28/26        USD       2,508        (74,757 )      —        (74,757 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        01/28/26        USD       10,363        (375,661 )      —        (375,661 ) 

 

 

C O N S O L I D A T E D  S C H E D U L E  O F  I N V E S T M E N T S

   7

Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

 

OTC Total Return Swaps (continued)

 

    Paid by the Fund           Received by the Fund                 Termination            

Notional

 

Amount

            

 

Upfront

 

Premium

 

Paid

     

Unrealized

 

Appreciation

  
   

 

Rate

         

 

Frequency

           

 

Reference

          

 

Frequency

      Counterparty         Date             (000)      Value     (Received)      (Depreciation)  
   

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly             BCOMRINT        Quarterly      Macquarie Bank Ltd.          02/02/26        USD       2,261      $ (1,381 )    $    —      $ (1,381 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

             Quarterly       BCOMRAGT              Quarterly      Macquarie Bank Ltd.        02/26/26        USD       11,502        (244,077 )      —        (244,077 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        03/02/26        USD       18,591        (554,113 )      —        (554,113 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Macquarie Bank Ltd.        03/16/26        USD       7,614        (205,162 )      —        (205,162 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Macquarie Bank Ltd.        03/23/26        USD       141        (4,246 )      —        (4,246 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Goldman Sachs International        03/31/26        USD       6,657        146,477       —        146,477  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Macquarie Bank Ltd.        03/31/26        USD       4,851        (98,639 )      —        (98,639 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Societe Generale SA        03/31/26        USD       1,559        102,381       —        102,381  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Merrill Lynch International        04/01/26        USD       15,467        (620,396 )      —        (620,396 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        04/07/26        USD       9,788        (297,913 )      —        (297,913 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Goldman Sachs International        04/30/26        USD       435        3,933       —        3,933  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        04/30/26        USD       1,151        (1,610 )      —        (1,610 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Macquarie Bank Ltd.        04/30/26        USD       2,436        (50,901 )      —        (50,901 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Merrill Lynch International        04/30/26        USD       248        11,183       —        11,183  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Goldman Sachs International        05/12/26        USD       391        6,353       —        6,353  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRENT        Quarterly      Goldman Sachs International        05/12/26        USD       406        (25,382 )      —        (25,382 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Macquarie Bank Ltd.        05/12/26        USD       201        (1,546 )      —        (1,546 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT        Quarterly      Macquarie Bank Ltd.        05/12/26        USD       479        (11,224 )      —        (11,224 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Macquarie Bank Ltd.        05/12/26        USD       93        527       —        527  
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRPRT        Quarterly      Goldman Sachs International        06/01/26        USD       2,787        (659 )      —        (659 ) 

 

 

8  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

 

OTC Total Return Swaps (continued)

 

    Paid by the Fund           Received by the Fund                 Termination            

Notional

 

Amount

            

 

Upfront

 

Premium

 

Paid

     

Unrealized

 

Appreciation

  
   

 

Rate

         

 

Frequency

           

 

Reference

          

 

Frequency

      Counterparty         Date             (000)      Value     (Received)      (Depreciation)  
   

3-month U.S. Treasury Bill, 4.35%(a)

             Quarterly             BCOMRENT        Quarterly      Goldman Sachs International          06/01/26        USD       2,180      $ (515 )    $     —      $ (515 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRAGT              Quarterly      Macquarie Bank Ltd.        06/01/26        USD       1,476        (349 )      —        (349 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRINT        Quarterly      Macquarie Bank Ltd.        06/01/26        USD       1,130        (267 )      —        (267 ) 
 

3-month U.S. Treasury Bill, 4.35%(a)

       Quarterly       BCOMRLIT        Quarterly      Macquarie Bank Ltd.        06/01/26        USD       177        (42 )      —        (42 ) 
                              

 

 

    

 

 

     

 

 

  
                               $  (6,931,966 )    $ —      $  (6,931,966 ) 
                              

 

 

    

 

 

     

 

 

  

 

  (a)

All or a portion of the security is held by a wholly-owned subsidiary. See Note 1 of the Notes to Consolidated Financial Statements for details on the wholly-owned subsidiary.

 

Balances Reported in the Consolidated Statement of Assets and Liabilities for OTC Swaps

 

         
      Swap
Premiums
Paid		      Swap
Premiums
Received		      Unrealized
Appreciation		      Unrealized
Depreciation

OTC Swaps

    $   —      $   —      $ 1,385,184      $(8,317,150)

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:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

 

               

Swaps — OTC

                     

Unrealized appreciation on OTC swaps; Swap premiums paid

      $ 1,385,184      $ —      $ —      $ —      $ —      $ —      $  1,385,184  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

 

               

Swaps — OTC

                     

Unrealized depreciation on OTC swaps; Swap premiums received

      $ 8,317,150      $ —      $ —      $ —      $ —      $ —      $ 8,317,150  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

For the period ended May 31, 2025, the effect of derivative financial instruments in the Consolidated Statement of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Swaps

    $ 9,424,444      $ —      $ —      $ —      $ —      $ —      $ 9,424,444  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Net Change in Unrealized Appreciation (Depreciation) on:                                                 

Swaps

    $  (9,887,146 )     $ —      $ —      $ —      $ —      $ —      $  (9,887,146 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

Total return swaps:

         

Average notional value

      $ 316,460,705  

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

 

 

C O N S O L I D A T E D  S C H E D U L E  O F  I N V E S T M E N T S

   9

Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

 

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

        

Swaps — OTC(a)

    $ 1,385,184        $ 8,317,150  
  

 

 

       

 

 

  

Total derivative assets and liabilities in the Consolidated Statement of Assets and Liabilities

    $ 1,385,184        $ 8,317,150  
  

 

 

       

 

 

  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

      —          —  
  

 

 

       

 

 

  

Total derivative assets and liabilities subject to an MNA

    $  1,385,184        $  8,317,150  
  

 

 

       

 

 

  

 

  (a)

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

 

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

 

           
Counterparty    Derivative
Assets
Subject to
an MNA by
Counterparty		       

Derivatives

Available

for Offset(a)

       

Non-

Cash

Collateral

Received(b)

       

Cash

Collateral

Received(b)

       

Net

Amount of

Derivative

Assets(c)

  

Goldman Sachs International(d)

    $ 336,823        $ (336,823 )       $ —        $ —        $ —  

Macquarie Bank Ltd.(d)

      527          (527 )         —          —          —  

Merrill Lynch International(d)

      285,269          (285,269 )         —          —          —  

Societe Generale SA(d)

      762,565          (762,565 )         —          —          —  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  
   $ 1,385,184        $  (1,385,184 )       $ —        $ —        $ —  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

$                         $                         $                         $                         $                        
Counterparty    Derivative
Liabilities
Subject to
an MNA by
Counterparty		        Derivatives
Available for
Offset(a)		        Non-Cash
Collateral
Pledged(b)		        Cash
Collateral
Pledged(b)		        Net Amount
of Derivative
Liabilities(e)		  

Goldman Sachs International(d)

    $ 1,540,228        $ (336,823 )       $ —        $ (810,000 )       $ 393,405  

JPMorgan Chase Bank N.A.(d)

      1,872,670          —          —          (743,000 )         1,129,670  

Macquarie Bank Ltd.(d)

      679,437          (527 )         —          (440,000 )         238,910  

Merrill Lynch International(d)

      1,563,852          (285,269 )         —          (810,000 )         468,583  

Societe Generale SA(d)

      2,660,963          (762,565 )         —          (1,500,000 )         398,398  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  
   $ 8,317,150        $  (1,385,184 )       $ —        $  (4,303,000 )       $ 2,628,966  
  

 

 

       

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)

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

 
  (b)

Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes.

 
  (c)

Net amount represents the net amount receivable from the counterparty in the event of default.

 
  (d)

Represents derivatives owned by the BlackRock Cayman Commodity Strategies Fund, Ltd., a wholly-owed subsidiary of the Fund. See Note 1 of the Notes to Consolidated Financial Statements.

 
  (e)

Net amount represents the net amount payable due to the counterparty in the event of default.

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Consolidated Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Consolidated Schedule of Investments above.

 

         
      Level 1        Level 2        Level 3        Total

Assets

                  

Investments

                  

Long-Term Investments

                  

Common Stocks

                  

Chemicals

    $  61,788,226        $ —        $ —        $ 61,788,226

Containers & Packaging

      36,648,655          —          —        36,648,655

Energy Equipment & Services

      1,628,086          572,563          —        2,200,649

Metals & Mining

      89,217,079           29,626,439          6        118,843,524

 

 

10  

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Consolidated Schedule of Investments (continued)

May 31, 2025

   

BlackRock Commodity Strategies Fund

 

Fair Value Hierarchy as of Period End (continued)

 

         
      Level 1        Level 2        Level 3        Total  

Common Stocks (continued)

                  

Oil, Gas & Consumable Fuels

    $ 60,967,229        $ 14,349,905        $ 92        $ 75,317,226  

Paper & Forest Products

      —          12,919,035          —          12,919,035  

Rights

      —          8,387          —          8,387  

Warrants

      67,982          —          —          67,982  

Short-Term Securities

                  

Money Market Funds

      14,221,351          —          —          14,221,351  

U.S. Treasury Obligations

      —          301,874,619          —          301,874,619  
  

 

 

       

 

 

       

 

 

       

 

 

  
   $  264,538,608        $  359,350,948        $ 98        $  623,889,654  
  

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                  

Assets

                  

Commodity Contracts

    $ —        $ 1,385,184        $ —        $ 1,385,184  

Liabilities

                  

Commodity Contracts

      —          (8,317,150 )         —          (8,317,150 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  
   $ —        $ (6,931,966 )       $ —          $ (6,931,966 ) 
  

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a)

Derivative financial instruments are swaps. Swaps are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to consolidated financial statements.

 

 

C O N S O L I D A T E D S C H E D U L E  O F  I N V E S T M E N T S

   11

Consolidated Statement of Assets and Liabilities

May 31, 2025

 

    

BlackRock
Commodity
Strategies

Fund

  

ASSETS

  

Investments, at value — unaffiliated(a)(b)

   $ 609,668,303  

Investments, at value — affiliated(c)

     14,221,351  

Cash

     4,407,556  

Cash pledged:

  

Collateral — OTC derivatives

     4,303,000  

Foreign currency, at value(d)

     6,574  

Receivables:

  

Investments sold

     4,232,598  

Securities lending income — affiliated

     14,801  

Capital shares sold

     582,455  

Dividends — unaffiliated

     876,038  

Dividends — affiliated

     38,004  

From the Manager

     34,069  

Unrealized appreciation on OTC swaps

     1,385,184  

Prepaid expenses

     24,481  
 

 

 

  

Total assets

     639,794,414  
 

 

 

  

LIABILITIES

  

Collateral on securities loaned

     6,937,078  

Payables:

  

Investments purchased

     1,465,675  

Administration fees

     21,961  

Capital shares redeemed

     503,645  

Deferred foreign capital gain tax

     18,150  

Investment advisory fees

     268,647  

Trustees’ and Officer’s fees

     767  

Other accrued expenses

     294,849  

Other affiliate fees

     2,419  

Professional fees

     30,172  

Service and distribution fees

     28,643  

Unrealized depreciation on OTC swaps

     8,317,150  
 

 

 

  

Total liabilities

     17,889,156  
 

 

 

  

Commitments and contingent liabilities

  

NET ASSETS

   $ 621,905,258  
 

 

 

  

NET ASSETS CONSIST OF:

  

Paid-in capital

   $ 745,847,556  

Accumulated loss

     (123,942,298 ) 
 

 

 

  

NET ASSETS

   $ 621,905,258  
 

 

 

  

(a) Investments, at cost — unaffiliated

   $ 541,801,787  

(b) Securities loaned, at value

   $ 6,107,405  

(c)  Investments, at cost — affiliated

   $ 14,221,000  

(d) Foreign currency, at cost

   $ 7,321  

 

 

12  

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Consolidated Statement of Assets and Liabilities (continued)

May 31, 2025

 

    

BlackRock
Commodity
Strategies

Fund

  
NET ASSET VALUE      
Institutional      

Net assets

   $  415,455,313  
 

 

 

  

Shares outstanding

     46,065,899  
 

 

 

  

Net asset value

   $ 9.02  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  
Investor A      

Net assets

   $ 80,092,403  
 

 

 

  

Shares outstanding

     8,976,430  
 

 

 

  

Net asset value

   $ 8.92  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  
Investor C      

Net assets

   $ 13,517,768  
 

 

 

  

Shares outstanding

     1,595,161  
 

 

 

  

Net asset value

   $ 8.47  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  
Class K      

Net assets

   $ 112,839,774  
 

 

 

  

Shares outstanding

     12,502,697  
 

 

 

  

Net asset value

   $ 9.03  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  

See notes to consolidated financial statements.

 

 

C O N S O L I D A T E D  S T A T E M E N T  O F  A S S E T S  A N D  L I A B I L I T I E S

   13

Consolidated Statement of Operations

Year Ended May 31, 2025

 

     BlackRock
Commodity
Strategies
Fund		  

INVESTMENT INCOME

  

Dividends — unaffiliated

   $ 7,042,912  

Dividends — affiliated

     363,044  

Interest — unaffiliated

     14,122,031  

Securities lending income — affiliated — net

     196,540  

Foreign taxes withheld

     (365,318 ) 

Foreign withholding tax claims

     239,348  
 

 

 

  

Total investment income

     21,598,557  
 

 

 

  

EXPENSES

  

Investment advisory

     3,925,160  

Transfer agent — class specific

     582,862  

Service and distribution — class specific

     357,919  

Administration

     265,736  

Professional

     173,172  

Administration — class specific

     126,676  

Registration

     82,949  

Accounting services

     71,146  

Custodian

     61,457  

Printing and postage

     59,221  

Trustees and Officer

     10,212  

Miscellaneous

     27,502  
 

 

 

  

Total expenses excluding interest expense

     5,744,012  

Interest expense

     2,741  
 

 

 

  

Total expenses

     5,746,753  
 

 

 

  

Less:

  

Administration fees waived by the Manager — class specific

     (126,676 ) 

Fees waived and/or reimbursed by the Manager

     (410,919 ) 

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     (319,138 ) 
 

 

 

  

Total expenses after fees waived and/or reimbursed

     4,890,020  
 

 

 

  

Net investment income

     16,708,537  
 

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

  

Net realized gain (loss) from:

  

Investments — unaffiliated(a)

     40,391,359  

Investments — affiliated

     161  

Foreign currency transactions

     (151,357 ) 

Swaps

     9,424,444  
 

 

 

  
    49,664,607  
 

 

 

  

Net change in unrealized appreciation (depreciation) on:

  

Investments — unaffiliated(b)

     (25,471,820 ) 

Investments — affiliated

     460  

Foreign currency translations

     9,996  

Swaps

     (9,887,146 ) 
 

 

 

  
    (35,348,510 ) 
 

 

 

  

Net realized and unrealized gain

     14,316,097  
 

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ 31,024,634  
 

 

 

  

(a) Net of foreign capital gain tax of

     $(2,180 ) 

(b) Net of decrease in deferred foreign capital gain tax of

     4,038  

See notes to consolidated financial statements.

 

 

14  

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Consolidated Statements of Changes in Net Assets

 

    BlackRock Commodity Strategies
Fund		  
     Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

 

  

OPERATIONS

    

Net investment income

   $ 16,708,537     $ 28,148,890  

Net realized gain (loss)

     49,664,607       (42,586,702 ) 

Net change in unrealized appreciation (depreciation)

     (35,348,510 )      112,403,648  
 

 

 

    

 

 

  

Net increase in net assets resulting from operations

     31,024,634       97,965,836  
 

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

    

Institutional

     (14,805,329 )      (63,779,042 ) 

Investor A

     (2,746,975 )      (9,950,222 ) 

Investor C

     (394,674 )      (2,042,128 ) 

Class K

     (3,688,020 )      (11,873,753 ) 
 

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (21,634,998 )      (87,645,145 ) 
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

    

Net decrease in net assets derived from capital share transactions

     (67,563,123 )      (456,087,656 ) 
 

 

 

    

 

 

  

NET ASSETS

    

Total decrease in net assets

     (58,173,487 )      (445,766,965 ) 

Beginning of year

     680,078,745        1,125,845,710  
 

 

 

    

 

 

  

End of year

   $   621,905,258     $ 680,078,745  
 

 

 

    

 

 

  

 

(a) 

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

 

See notes to consolidated financial statements.

 

 

C O N S O L I D A T E D  S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S

   15

Consolidated Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Commodity Strategies Fund  
    Institutional  
    

Year Ended

05/31/25

    

Year Ended

05/31/24

    

Year Ended

05/31/23

    

Year Ended

05/31/22

    

Year Ended

05/31/21

  
           

Net asset value, beginning of year

   $ 8.86     $ 8.62     $ 11.33     $ 9.22     $ 6.33  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.23       0.28       0.22       0.09       0.07  

Net realized and unrealized gain (loss)

     0.23       0.73       (2.08 )      2.27       2.88  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.46       1.01       (1.86 )      2.36       2.95  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.30 )      (0.77 )      (0.85 )      (0.25 )      (0.06 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 9.02     $ 8.86     $ 8.62     $ 11.33     $ 9.22  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     5.40 %      12.30 %      (16.46 )%      26.31 %      46.93 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     0.87 %      0.87 %      0.83 %      0.82 %      0.90 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.72 %      0.72 %      0.72 %      0.72 %      0.72 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.69 %      3.35 %      2.37 %      0.95 %      0.90 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 415,455     $ 463,551     $ 837,334     $ 2,061,348     $ 862,528  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     106 %      53 %      78 %      91 %(e)      58 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

 

 

16  

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Consolidated Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Commodity Strategies Fund (continued)  
    Investor A  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 8.77     $ 8.53     $ 11.23     $ 9.14     $ 6.28  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.21       0.26       0.20       0.07       0.05  

Net realized and unrealized gain (loss)

     0.22       0.73       (2.07 )      2.25       2.86  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.43       0.99       (1.87 )      2.32       2.91  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.28 )      (0.75 )      (0.83 )      (0.23 )      (0.05 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 8.92     $ 8.77     $ 8.53     $ 11.23     $ 9.14  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     5.06 %      12.12 %      (16.76 )%      26.06 %      46.53 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     1.14 %      1.12 %      1.07 %      1.13 %      1.18 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.97 %      0.97 %      0.97 %      0.97 %      0.97 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.44 %      3.10 %      2.15 %      0.68 %      0.62 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 80,092     $ 92,118     $ 120,674     $ 236,887     $ 127,923  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     106 %      53 %      78 %      91 %(e)      58 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

 

 

C O N S O L I D A T E D  F I N A N C I A L  H I G H L I G H T S

   17

Consolidated Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Commodity Strategies Fund (continued)  
    Investor C  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 8.34     $ 8.13     $ 10.75     $ 8.78     $ 6.04  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)(a)

     0.14       0.19       0.13       (0.00 )(b)      (0.01 ) 

Net realized and unrealized gain (loss)

     0.20       0.69       (1.98 )      2.15       2.75  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.34       0.88       (1.85 )      2.15       2.74  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(c)

     (0.21 )      (0.67 )      (0.77 )      (0.18 )      (0.00 )(b) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 8.47     $ 8.34     $ 8.13     $ 10.75     $ 8.78  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

          

Based on net asset value

     4.25 %      11.29 %      (17.34 )%      25.06 %      45.48 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

          

Total expenses

     1.88 %      1.86 %      1.80 %      1.81 %      1.96 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.72 %      1.72 %      1.72 %      1.72 %      1.72 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     1.69 %      2.34 %      1.49 %      (0.04 )%      (0.15 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 13,518     $ 16,586     $ 29,758     $ 42,138     $ 16,246  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     106 %      53 %      78 %      91 %(f)      58 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Amount is greater than $(0.005) per share.

(c) 

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

(d) 

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

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

 

 

18  

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Consolidated Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Commodity Strategies Fund (continued)  
    Class K  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 8.87     $ 8.62     $ 11.34     $ 9.22     $ 6.34  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.24       0.29       0.23       0.10       0.06  

Net realized and unrealized gain (loss)

     0.22       0.74       (2.09 )      2.27       2.89  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.46       1.03       (1.86 )      2.37       2.95  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net investment income(b)

     (0.30 )      (0.78 )      (0.86 )      (0.25 )      (0.07 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 9.03     $ 8.87     $ 8.62     $ 11.34     $ 9.22  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     5.45 %      12.49 %      (16.48 )%      26.47 %      46.76 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     0.76 %      0.77 %      0.72 %      0.72 %      0.80 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.67 %      0.67 %      0.67 %      0.67 %      0.67 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income

     2.73 %      3.40 %      2.42 %      1.02 %      0.76 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $ 112,840     $ 107,825     $ 138,079     $ 312,639     $ 197,360  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     106 %      53 %      78 %      91 %(e)      58 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

Portfolio turnover rate excludes in-kind transactions.

See notes to consolidated financial statements.

 

 

C O N S O L I D A T E D  F I N A N C I A L  H I G H L I G H T S

   19

Notes to Consolidated Financial Statements

 

1. ORGANIZATION

BlackRock FundsSM (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 Commodity Strategies Fund (the “Fund”) is a series of the Trust. The Fund is classified as diversified.

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

 

       
Share Class   Initial Sales Charge    CDSC      Conversion Privilege

Institutional and Class K Shares

   No      No      None

Investor A Shares

   Yes      No (a)     None

Investor C Shares

   No      Yes (b)     To Investor A Shares after approximately 8 years

 

  (a) 

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 
  (b) 

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

 

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of funds referred to as the BlackRock Multi-Asset Complex.

Basis of Consolidation: The accompanying consolidated financial statements of the Fund include the accounts of BlackRock Cayman Commodity Strategies Fund, Ltd. (the “Cayman Subsidiary”), which is a wholly-owned subsidiary of the Fund and primarily invests in commodity-related instruments and other derivatives. The Cayman 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 Cayman Subsidiary. The net liabilities of the Cayman Subsidiary as of period end were $(2,629,009), which is (0.42)% of the Fund’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Cayman Subsidiary is subject to the same investment policies and restrictions that apply to the Fund, except that the Cayman Subsidiary may invest without limitation in commodity-related instruments.

2. SIGNIFICANT ACCOUNTING POLICIES

The consolidated 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 consolidated financial statements, disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of increases and decreases in net assets from operations during the reporting period. Actual results could differ from those estimates. The Fund is considered an investment company under U.S. GAAP and follows the accounting and reporting guidance applicable to investment companies. Below is a summary of significant accounting policies:

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Fund is informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

The Fund does not isolate the effect of fluctuations in foreign exchange rates from the effect of fluctuations in the market prices of investments for financial reporting purposes. Accordingly, the effects of changes in exchange rates on investments are not segregated in the 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 U.S. federal income tax purposes.

Foreign Taxes: The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Consolidated Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of May 31, 2025, if any, are disclosed in the Consolidated Statement of Assets and Liabilities.

 

 

20  

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Notes to Consolidated Financial Statements (continued)

 

Consistent with U.S. GAAP accrual requirements for uncertain tax positions, the Fund recognizes tax reclaims when the Fund determines that it is more likely than not that the Fund will sustain its position that it is due the reclaim.

The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Consolidated Statement of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Cash: The Fund may maintain cash at its custodian which, at times may exceed United States federally insured limits. The Fund may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Fund is obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Consolidated Statement of Operations.

Collateralization: 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.

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

Net income and realized gains from investments held by the Cayman Subsidiary are treated as ordinary income for tax purposes. If a net loss is realized by the Cayman 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. Expenses directly related to the Fund and other shared expenses prorated to the Fund are allocated daily to each class based on its relative net assets or other appropriate methods. Other operating expenses shared by several funds, including other funds managed by the Manager, are prorated among those funds on the basis of relative net assets or other appropriate methods.

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances. For financial reporting purposes, custodian credits, if any, are included in interest income in the Consolidated Statement of Operations.

Segment Reporting: The Fund adopted Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures (“ASU 2023-07”) during the period. The Fund’s adoption of the new standard impacted financial statement disclosures only and did not affect the Fund’s financial position or results of operations.

The Chief Financial Officer acts as the Fund’s Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance and allocating resources with respect to the Fund. The CODM has concluded that the Fund operates as a single operating segment since the Fund has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Fund’s financial statements.

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 consolidated financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Trust (the “Board”) has approved the designation of the Fund’s Manager as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

 

  ·  

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.

 

  ·  

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities are sold could differ from the prices used by a fund. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

  ·  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s net asset value (“NAV”).

 

 

N O T E S  T O  C O N S O L I D A T E D F I N A N C I A L  S T A T E M E N T S

   21

Notes to Consolidated Financial Statements (continued)

 

  •  

Interest rate, credit default, inflation and currency swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate market data and discounted cash flows. Total return and equity swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using models that incorporate market trades and fair value of the underlying reference instruments.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that 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 Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the measurement date.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs:

(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the underlying investment or comparable issuers

(ii) recapitalizations and other transactions across the capital structure

(iii) market or relevant indices multiples of comparable issuers

(iv) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks

(v) quoted prices for similar investments or assets in active markets

(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates

(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics

(viii) relevant market news and other public sources.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held by the Fund. Certain information made available by a Private Company is as of a date that is earlier than the date the Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price the Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. 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 that the Fund has the ability to access for identical assets or liabilities;

 

  •  

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

 

  •  

Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may

 

 

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Notes to Consolidated Financial Statements (continued)

 

not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Consolidated Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Fund’s Consolidated Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Consolidated Statement of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities on loan by counterparty which are subject to offset under an MSLA:

 

         
Counterparty   Securities
Loaned at Value		      Cash
Collateral Received(a)		     Non-Cash
Collateral Received,
at Fair Value(a)		      Net
Amount		  

Barclays Capital, Inc.

   $ 80,679      $ (80,679 )    $ —      $ —  

BofA Securities, Inc.

     14,573        (14,573 )      —        —  

Citigroup Global Markets, Inc.

     2,301        (2,301 )      —        —  

J.P. Morgan Securities LLC

     2,014,085        (2,014,085 )      —        —  

Morgan Stanley

     1,712,823        (1,712,823 )      —        —  

SG Americas Securities LLC

     2,282,944        (2,282,944 )      —        —  
 

 

 

     

 

 

    

 

 

     

 

 

  
  $ 6,107,405      $ (6,107,405 )    $ —      $ —  
 

 

 

     

 

 

    

 

 

     

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Consolidated Statement of Assets and Liabilities.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Consolidated Schedule of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

 

 

N O T E S  T O  C O N S O L I D A T E D  F I N A N C I A L  S T A T E M E N T S

   23

Notes to Consolidated Financial Statements (continued)

 

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

For OTC swaps, any upfront premiums paid and any upfront fees received are shown as swap premiums paid and swap premiums received, respectively, in the 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.

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the CCP becomes the Fund’s counterparty on the swap. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Consolidated Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps 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 shown as variation margin receivable (or payable) on centrally cleared swaps in the Consolidated Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are amortized over the term of the contract and recorded as realized gains (losses) in the Consolidated Statement of Operations, including those at termination.

 

  •  

Total return swaps — Total return swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Total return swaps are agreements in which there is an exchange of cash flows whereby one party commits to make payments based on the total return (distributions plus capital gains/losses) of an underlying instrument, or basket of underlying instruments, in exchange for fixed or floating rate interest payments. If the total return of the instrument(s) or index underlying the transaction exceeds or falls short of the offsetting fixed or floating interest rate obligation, the Fund receives payment from or makes a payment to the counterparty.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Consolidated Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract 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. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

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

Cash collateral that has been pledged to cover obligations of the Fund and cash collateral received from the counterparty, if any, is reported separately in the 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 the counterparties are not fully collateralized, the Fund bears the risk of loss from counterparty non-performance. Likewise, to the extent the Fund has delivered collateral to a counterparty and stands ready to perform under the terms of its agreement with such counterparty, the Fund bears the risk of loss from a counterparty in the amount of the value of the collateral in the event the counterparty fails to return such collateral. Based on the terms of agreements, collateral may not be required for all derivative contracts.

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

 

 

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Notes to Consolidated Financial Statements (continued)

 

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

 

   
Average Daily Net Assets   Investment Advisory Fees  

First $1 billion

     0.62 % 

$1 billion - $3 billion

     0.58  

$3 billion - $5 billion

     0.56  

$5 billion - $10 billion

     0.54  

Greater than $10 billion

     0.53  

The Manager provides investment management and other services to the Cayman Subsidiary. The Manager does not receive separate compensation from the Cayman Subsidiary for providing investment management or administrative services. However, the Fund pays the Manager based on the Fund’s net assets, which includes the assets of the Cayman Subsidiary.

With respect to the Fund, the Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of the Fund for which BIL acts as Sub-Adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

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:

 

     
Share Class   Service Fees     Distribution Fees  

Investor A

     0.25 %      N/A  

Investor C

     0.25       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 shareholders.

For the year ended May 31, 2025, 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  

Service and distribution – class specific

   $ 210,324              $ 147,595               $ 357,919  

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 fee, which is shown as administration in the Consolidated Statement of Operations, is paid at the annual rates below.

 

   
Average Daily Net Assets   Administration Fees  

 

First $500 million

     0.0425 % 

$500 million - $1 billion

     0.0400  

$1 billion - $2 billion

     0.0375  

$2 billion - $4 billion

     0.0350  

$4 billion - $13 billion

     0.0325  

Greater than $13 billion

     0.0300  

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 year ended May 31, 2025, the Fund paid the following to the Manager in return for these services, which are included in administration – class specific in the Consolidated Statement of Operations:

 

     Institutional      Investor A      Investor C      Class K      Total  
           

Administration – class specific

   $ 85,470      $ 16,867      $ 2,959      $ 21,380      $ 126,676  

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended May 31, 2025, the Fund did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Fund. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended May 31, 2025, 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      Class K      Total  
           

Reimbursed amounts

   $ 4      $ 3,742      $ 720      $ 239      $ 4,705  

 

 

N O T E S  T O  C O N S O L I D A T E D  F I N A N C I A L  S T A T E M E N T S

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Notes to Consolidated Financial Statements (continued)

 

For the year ended May 31, 2025, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

 

           
     Institutional      Investor A      Investor C      Class K      Total  

Transfer agent — class specific

   $ 452,943      $ 108,955      $ 18,252      $ 2,712      $ 582,862  

Other Fees: For the year ended May 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares for a total of $3,400.

For the year ended May 31, 2025, affiliates received CDSCs as follows:

 

   
Share Class   Amounts  

Investor A

   $ 577  

Investor C

      1,695  

Expense Limitations, Waivers and Reimbursements: The Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations. For the year ended May 31, 2025, the amount waived was $5,895.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended May 31, 2025, there were no fees waived by the Manager pursuant to this arrangement.

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

       
Institutional   Investor A     Investor C     Class K  

0.72%

     0.97 %      1.72 %      0.67 % 

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2026, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended May 31, 2025, the Manager waived and/or reimbursed investment advisory fees of $405,024, which is included in fees waived and/or reimbursed by the Manager in the Consolidated Statement of Operations.

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific and transfer agent fees waived and/or reimbursed by the Manager — class specific, respectively, in the Consolidated Statement of Operations. For the year ended May 31, 2025, class specific expense waivers and/or reimbursements were as follows:

 

           
     Institutional      Investor A      Investor C      Class K      Total  

Administration fees waived by the Manager — class specific

   $ 85,470      $ 16,867      $ 2,959      $ 21,380      $ 126,676  

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     239,363        66,450        10,613        2,712        319,138  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, the money market fund will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.

Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.

 

 

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Notes to Consolidated Financial Statements (continued)

 

Pursuant to the current securities lending agreement, the Fund retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Consolidated Statement of Operations. For the year ended May 31, 2025, the Fund paid BIM $42,355 for securities lending agent services.

Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the SEC, the Fund could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.

During the period ended March 3, 2025, the Fund did not participate in the Interfund Lending Program.

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

Other Transactions: The Fund may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended May 31, 2025, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

       
Purchases   Sales            

Net Realized 

Gain (Loss) 

  

$ 129,597

     $ —                $   —   

 

7.

PURCHASES AND SALES

For the year ended May 31, 2025, purchases and sales of investments, excluding short-term securities, were $329,420,643 and $373,434,807, respectively.

 

8.

INCOME TAX INFORMATION

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

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of May 31, 2025, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s consolidated financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of date of these financial statements, all of which are subject to change, possibly with retroactive effect which may impact the Fund’s NAV.

The tax character of distributions paid was as follows:

 

       
            

Year Ended

05/31/25

     

Year Ended

05/31/24

  

Ordinary income

             

 

 $ 21,634,998

 

  

 

     

 

 $ 87,645,145

 

  

 

As of May 31, 2025, the tax components of accumulated earnings (loss) were as follows:

 

 

  
Fund Name  

Undistributed

Ordinary Income

     

Non-expiring

Capital Loss

Carryforwards(a)

     Net Unrealized
Gains (Losses)(b)		      Total  

 

  

BlackRock Commodity Strategies Fund

    $ 10,655,218      $ (189,409,453 )    $ 54,811,937      $  (123,942,298 ) 

 

  

 

(a) 

Amounts available to offset future realized capital gains.

 
(b) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the accounting for swap agreements, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the characterization of corporate actions.

 

 

 

N O T E S  T O  C O N S O L I D A T E D F I N A N C I A L  S T A T E M E N T S

   27

Notes to Consolidated Financial Statements (continued)

 

During the year ended May 31, 2025, the Fund utilized the following amount of its capital loss carryforward:

 

   
Fund Name   Utilized  

BlackRock Commodity Strategies Fund

   $ 31,158,849  

As of May 31, 2025, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

Fund Name   Tax Cost     

Gross Unrealized

Appreciation

     

Gross Unrealized

Depreciation

    

Net Unrealized

Appreciation

(Depreciation)

  

BlackRock Commodity Strategies Fund

   $ 562,136,982      $ 84,838,576      $ (23,085,904 )     $ 61,752,672  

 

9.

BANK BORROWINGS

The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2026 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2025, the Fund did not borrow under the credit agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.

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

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore the Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.

Counterparty Credit Risk: The Fund may be exposed to counterparty credit risk, or the risk that an entity may fail to or be unable to perform on its commitments related to unsettled or open transactions, including making timely interest and/or principal payments or otherwise honoring its obligations. The Fund manages counterparty credit risk by entering into transactions only with counterparties that the Manager believes have the financial resources to honor their obligations and by monitoring the financial stability of those counterparties. Financial assets, which potentially expose the Fund to market, issuer and counterparty credit risks, consist principally of financial instruments and

 

 

28  

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Notes to Consolidated Financial Statements (continued)

 

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.

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Consolidated Schedule of Investments.

The Fund invests a significant portion of its assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Consolidated Schedule of Investments.

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 decrease as interest rates rise and increase as interest rates fall. The Fund may be subject to a greater risk of rising interest rates during a period of historically low interest rates. Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Fund’s performance.

The Fund invests a significant portion of its assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Fund invests.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     Year Ended 05/31/25     Year Ended 05/31/24  
Share Class   Shares     Amount     Shares     Amount  

Institutional

        

Shares sold

     13,046,937     $   113,453,641       16,238,591     $  137,317,730  

Shares issued in reinvestment of distributions

     1,695,838       14,501,014       7,095,202       60,484,375  

Shares redeemed

     (20,988,453 )      (182,164,245 )      (68,198,567 )      (578,220,648 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (6,245,678 )    $ (54,209,590 )      (44,864,774 )    $ (380,418,543 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     1,234,555     $ 10,669,009       1,577,748     $ 13,256,153  

Shares issued in reinvestment of distributions

     319,621       2,707,750       1,156,635       9,757,319  

Shares redeemed

     (3,082,856 )      (26,596,176 )      (6,373,307 )      (53,134,580 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (1,528,680 )    $ (13,219,417 )      (3,638,924 )    $ (30,121,108 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor C

        

Shares sold

     128,087     $ 1,055,437       162,325     $ 1,312,561  

Shares issued in reinvestment of distributions

     48,741       393,494       252,922       2,040,080  

Shares redeemed and automatic conversion of shares

     (570,677 )      (4,633,882 )      (2,085,435 )      (16,739,947 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (393,849 )    $ (3,184,951 )      (1,670,188 )    $ (13,387,306 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 

 

N O T E S  T O  C O N S O L I D A T E D F I N A N C I A L  S T A T E M E N T S

   29

Notes to Consolidated Financial Statements (continued)

 

     Year Ended 05/31/25     Year Ended 05/31/24  
Share Class   Shares     Amount     Shares     Amount  

Class K

        

Shares sold

     3,597,413     $   31,456,261       4,418,921     $   37,807,441  

Shares issued in reinvestment of distributions

     430,520       3,684,290       1,393,260       11,870,505  

Shares redeemed

     (3,684,835 )      (32,089,716 )      (9,665,648 )      (81,838,645 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    343,098     $ 3,050,835       (3,853,467 )    $ (32,160,699 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (7,825,109 )    $ (67,563,123 )      (54,027,353 )    $ (456,087,656 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 

12.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

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Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock Commodity Strategies Fund and the Board of Trustees of BlackRock FundsSM:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying consolidated statement of assets and liabilities of BlackRock Commodity Strategies Fund of BlackRock FundsSM (the “Fund”), including the consolidated schedule of investments, as of May 31, 2025, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2025, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2025

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

R E P O R T  O F  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C  A C C O U N T I N G  F I R M

   31

Important Tax Information (unaudited)

 

The following amount, or maximum amount allowable by law, is hereby designated as qualified dividend income for individuals for the fiscal year ended May 31, 2025:

 

 

  

Fund Name

    

 Qualified Dividend

Income

  

 

 

  

BlackRock Commodity Strategies Fund

   $ 6,935,857  

 

  

The Fund hereby designates the following amount, or maximum amount allowable by law, of distributions from direct federal obligation interest for the fiscal year ended May 31, 2025:

 

 

  

Fund Name

    

 Federal Obligation

Interest

  

 

 

  

BlackRock Commodity Strategies Fund

   $ 11,927,134  

 

  

The law varies in each state as to whether and what percent of ordinary income dividends attributable to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.

The following percentage, or maximum percentage allowable by law, of ordinary income distributions paid during the fiscal year ended May 31, 2025 qualified for the dividends-received deduction for corporate shareholders:

 

 

  

Fund Name

    

 Dividends-Received

Deduction

  

 

 

  

BlackRock Commodity Strategies Fund

     10.24 % 

 

  

The Fund hereby designates the following amount, or maximum amount allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended May 31, 2025:

 

 

  

Fund Name

     Interest Dividends  

 

  

BlackRock Commodity Strategies Fund

   $ 12,078,301  

 

  

The Fund hereby designates the following amount, or maximum amount allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended May 31, 2025:

 

 

  

Fund Name

    

 Interest-Related

Dividends

  

 

 

  

BlackRock Commodity Strategies Fund

   $ 12,079,694  

 

  

 

 

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Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

 

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds (the “Trust”) met on April 22, 2025 (the “April Meeting”) and May 20-21, 2025 (the “May Meeting”) to consider the approval to continue the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of BlackRock Commodity Strategies Fund (the “Fund”), and BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor. The Board also considered the approval to continue the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Manager and BlackRock International Limited (the “Sub-Advisor”) with respect to the Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreement are referred to herein as the “Agreements.”

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreements for the Fund on an annual basis. The Board Members who are not “interested persons” of the Trust, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board Members”). The Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to the Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Board had four quarterly meetings per year, as well as numerous ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also held the April Meeting to consider specific information regarding the renewal of the Agreements. In considering the renewal of the Agreements, the Board assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considered information that was relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ investment performance analyses, and the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as applicable; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreements. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding the Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of the Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Fund; (g) a summary of aggregate amounts paid by the Fund to BlackRock; (h) sales and redemption data regarding the Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting, and such responses were reviewed by the Board Members.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more

 

 

D I S C L O S U R E  O F  I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T  A N D  S U B  -  A D V I S O R Y  A G R E E M E N T

   33

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)

 

information about some of the primary factors that were relevant to the Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by the Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the experience of the Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of certain trading, portfolio management, operations and/or information systems owned by BlackRock; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to the Fund. BlackRock and its affiliates provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide the Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. The Board also considered the operation of BlackRock’s business continuity plans.

The Board noted that the engagement of the Sub-Advisor with respect to the Fund facilitates the provision of investment advice and trading by investment personnel out of non-U.S. jurisdictions. The Board considered that this arrangement provides additional flexibility to the portfolio management team, which may benefit the Fund and its shareholders.

B. The Investment Performance of the Fund

The Board, including the Independent Board Members, reviewed and considered the performance history of the Fund throughout the year and at the April Meeting. The Board was provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the April meeting. In preparation for the April Meeting, the Board was also provided with reports independently prepared by Broadridge, which included an analysis of the Fund’s performance as of December 31, 2024, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of the Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for the one-, three- and five-year periods reported, the Fund ranked in the fourth, second and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable period.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Fund

The Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered that the fee and expense information in the Broadridge report for the Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of market volatility. The Board also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison is subject to Broadridge’s defined

 

 

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Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement (continued)

 

peer selection criteria and methodology. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Fund. The Board reviewed BlackRock’s estimated profitability with respect to the Fund and other funds the Board currently oversees for the year ended December 31, 2024 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized the limitations of calculating and comparing profitability at the individual fund level.

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time and resources, assumption of risk, and liability profile in servicing the Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and first quartiles, respectively, relative to the Fund’s Expense Peers. The Board further noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board additionally noted that the breakpoints can, conversely, adjust the advisory fee rate upward as the size of the Fund decreases below certain contractually specified levels. The Board also noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which any economies of scale might benefit the Fund in a variety of ways as the assets of the Fund increase. The Board considered multiple factors, including the advisory fee rate and breakpoints, unitary fee structure, fee waivers, and/or expense caps, as applicable. The Board considered the Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. With respect to securities lending, during the year the Board also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as securities lending agent. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the mutual fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of the Fund, for a one-year term ending June 30, 2026, and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to the Fund, for a one-year term ending June 30, 2026. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent legal counsel throughout the deliberative process.

 

 

D I S C L O S U R E  O F  I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T  A N D  S U B -A D V I S O R Y  A G R E E M E N T

   35

Additional Information

 

Changes in and Disagreements with Accountants

Not applicable.

Proxy Results

Not applicable.

Remuneration Paid to Trustees, Officers, and Others

Compensation to the independent directors/trustees of the Trust is paid by the Trust, on behalf of the Fund.

General Information

Quarterly performance, shareholder reports, semi-annual and annual financial statements, current net asset value and other information regarding the Fund may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and prospectuses by enrolling in the electronic delivery program.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1. Access the BlackRock website at blackrock.com

2. Select “Access Your Account”

3. Next, select “eDelivery” in the “Related Resources” box and follow the sign-up instructions.

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

 

 

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Additional Information (continued)

 

Fund and Service Providers

 

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

  

Distributor

BlackRock Investments, LLC

New York, NY 10001

Sub-Adviser

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

  

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02110

Accounting Agent and Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

  

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Custodian

The Bank of New York Mellon

New York, NY 10286

  

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

 

 

A D D I T I O N A L  I N F O R M A T I O N

   37

Glossary of Terms Used in these Financial Statements

 

Currency Abbreviation

CAD

  

Canadian Dollar

USD

  

United States Dollar

Portfolio Abbreviation

ADR

  

American Depositary Receipt

BCOMRAGT

  

Bloomberg Roll Select Agriculture Subindex Total ReturnSM

BCOMRENT

  

Bloomberg Roll Select Energy Subindex Total ReturnSM

BCOMRINT

  

Bloomberg Roll Select Industrial Metals Subindex Total ReturnSM

BCOMRLIT

  

Bloomberg Roll Select Livestock Subindex Total ReturnSM

BCOMRPRT

  

Bloomberg Roll Select Precious Metals Subindex Total ReturnSM

CVR

  

Contingent Value Rights

OTC

  

Over-the-Counter

 

 

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THIS PAGE INTENTIONALLY LEFT BLANK.

 

 

 

Want to know more?

blackrock.com | 800-441-7762

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

 

 

LOGO

   LOGO

 

LOGO

  MAY 31, 2025

 

  

2025 Annual Financial Statements and Additional Information

 

 

BlackRock FundsSM

 

·  

BlackRock Energy Opportunities Fund

·  

BlackRock High Equity Income Fund

 

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 

 

Table of Contents

 

      Page  

Schedules of Investments

      3  

Statements of Assets and Liabilities

      11  

Statements of Operations

      13  

Statements of Changes in Net Assets

      14  

Financial Highlights

      16  

Notes to Financial Statements

      23  

Report of Independent Registered Public Accounting Firm

      34  

Important Tax Information

      35  

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements

      36  

Additional Information

      40  

Glossary of Terms Used in these Financial Statements

      42  

 

2

Schedule of Investments

May 31, 2025

   

BlackRock Energy Opportunities Fund

(Percentages shown are based on Net Assets)

 

 

Security   Shares     Value  

Common Stocks

    
Energy Equipment & Services — 2.8%            

Poseidon Concepts Corp.(a)(b)

    35,081     $ —  

TechnipFMC PLC

     171,350       5,337,552  

Tenaris SA

     121,659          2,037,483  
   

 

 

  
      7,375,035  
Oil, Gas & Consumable Fuels — 95.8%            

Cameco Corp. (CAD)

     84,022       4,918,809  

Canadian Natural Resources Ltd.

     363,732       11,044,349  

Cheniere Energy, Inc.

     46,170       10,941,828  

Chevron Corp.

     188,715       25,797,340  

ConocoPhillips

     78,155       6,670,529  

EOG Resources, Inc.

     89,143       9,678,256  

EQT Corp.

     113,584       6,261,886  

Exxon Mobil Corp.

     507,982       51,966,559  

Gazprom PJSC(a)(b)

    639,500       83  

Gaztransport Et Technigaz SA

     13,564       2,520,576  

Hess Corp.

     49,955       6,603,551  

Kinder Morgan, Inc.

     359,361       10,076,482  

Kosmos Energy Ltd.(b)

    724,742       1,203,072  

Pembina Pipeline Corp.

     136,462       5,114,031  

Permian Resources Corp., Class A

     454,651       5,733,149  

Shell PLC

     838,922       27,680,172  

Suncor Energy, Inc.

     208,430       7,410,136  

Targa Resources Corp.

     50,433       7,964,884  

TC Energy Corp.

     213,597       10,823,431  
Security   Shares     Value  
Oil, Gas & Consumable Fuels (continued)            

TotalEnergies SE

     320,634     $ 18,875,134  

Tourmaline Oil Corp.

     82,530       3,721,322  

Valero Energy Corp.

     59,689       7,698,090  

Williams Cos., Inc. (The)

     177,674       10,751,054  
   

 

 

  
      253,454,723  
   

 

 

  

Total Long-Term Investments — 98.6%
(Cost: $195,423,054)

 

     260,829,758  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 0.7%            

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(c)(d)

    1,948,783       1,948,783  
   

 

 

  

Total Short-Term Securities — 0.7%
(Cost: $1,948,783)

       1,948,783  
   

 

 

  

Total Investments — 99.3%
(Cost: $197,371,837)

       262,778,541  

Other Assets Less Liabilities — 0.7%

       1,899,799  
   

 

 

  

Net Assets — 100.0%

     $  264,678,340  
   

 

 

  

 

(a) 

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

(b) 

Non-income producing security.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer  

Value at

05/31/24

    

Purchases

at Cost

    

Proceeds

from Sales

    

Net

Realized

Gain (Loss)

    

Change in

Unrealized

Appreciation

(Depreciation)

    

Value at

05/31/25

    

Shares

Held at

05/31/25

     Income    

Capital

Gain

Distributions

from Underlying

Funds

        
 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $ —     $ 120 (b)    $   —     $ (120 )            $    —     $ —       —     $ 47 (c)     $ —    
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     2,548,266         —       (599,483 )(b)        —         —       1,948,783       1,948,783       229,204       —    
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

    
          $ (120 )      $ —     $  1,948,783       $  229,251     $   —    
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

    

 

 (a)

As of period end, the entity is no longer held.

 (b)

Represents net amount purchased (sold).

 (c)

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   3

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Energy Opportunities Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
     Level 1      Level 2      Level 3      Total  

 

  

Assets

            

Investments

            

Long-Term Investments

            

Common Stocks

            

Energy Equipment & Services

    $ 5,337,552      $ 2,037,483      $ —      $ 7,375,035  

Oil, Gas & Consumable Fuels

      204,378,758        49,075,882        83        253,454,723  

Short-Term Securities

            

Money Market Funds

      1,948,783        —        —        1,948,783  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $  211,665,093      $  51,113,365      $ 83      $  262,778,541  
  

 

 

     

 

 

     

 

 

     

 

 

  

See notes to financial statements.

 

 

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Schedule of Investments

May 31, 2025

   

BlackRock High Equity Income Fund

(Percentages shown are based on Net Assets)

 

Security         

 

Shares

     Value  

Common Stocks

      
Aerospace & Defense — 3.3%                  

Airbus SE

       28,555     $      5,251,966  

Boeing Co. (The)(a)

      69,118       14,329,544  

L3Harris Technologies, Inc.

       86,757       21,198,205  

RTX Corp.

       129,887       17,726,978  
     

 

 

  
        58,506,693  
Automobile Components — 0.8%                  

Aptiv PLC(a)

      162,606       10,863,707  

Lear Corp.

       49,637       4,488,177  
     

 

 

  
        15,351,884  
Automobiles — 0.3%                  

General Motors Co.

       99,243       4,923,445  
     

 

 

  
Banks — 6.0%                  

Bank of America Corp.

       137,294       6,058,784  

Citigroup, Inc.

       483,550       36,420,986  

First Citizens BancShares, Inc., Class A

       16,957       31,351,458  

Flagstar Financial, Inc.

       609,635       7,022,995  

Wells Fargo & Co.

       357,512       26,734,748  
     

 

 

  
        107,588,971  
Beverages — 0.8%                  

Keurig Dr. Pepper, Inc.

       313,830       10,566,656  

Pernod Ricard SA

       35,735       3,695,087  
     

 

 

  
        14,261,743  
Broadline Retail — 1.1%                  

Amazon.com, Inc.(a)

      44,516       9,126,225  

PDD Holdings, Inc., ADR(a)

      104,775       10,111,835  
     

 

 

  
        19,238,060  
Building Products — 0.4%                  

Johnson Controls International PLC

       65,114       6,600,606  
     

 

 

  
Capital Markets — 1.9%                  

Carlyle Group, Inc. (The)

       173,468       7,840,754  

Charles Schwab Corp. (The)

       145,750       12,875,555  

Intercontinental Exchange, Inc.

       73,024       13,129,715  
     

 

 

  
        33,846,024  
Chemicals — 2.2%                  

Air Products & Chemicals, Inc.

       54,672       15,248,568  

Albemarle Corp.

       46,916       2,616,036  

International Flavors & Fragrances, Inc.

       141,596       10,840,590  

PPG Industries, Inc.

       104,374       11,564,639  
     

 

 

  
        40,269,833  
Commercial Services & Supplies — 0.6%        

Rentokil Initial PLC

       2,411,701       11,448,617  
     

 

 

  
Communications Equipment — 0.9%        

Cisco Systems, Inc.

       247,097       15,576,995  
     

 

 

  
Consumer Staples Distribution & Retail — 1.4%        

Dollar General Corp.

       129,571       12,600,780  

Dollar Tree, Inc.(a)

      136,543       12,324,371  
     

 

 

  
        24,925,151  
Containers & Packaging — 0.7%                  

Sealed Air Corp.

       392,576       12,640,947  
     

 

 

  
Diversified Telecommunication Services — 0.7%        

Verizon Communications, Inc.

       281,323       12,366,959  
     

 

 

  
Electric Utilities — 1.8%                  

American Electric Power Co., Inc.

       57,078       5,907,003  
Security         

 

Shares

     Value  
Electric Utilities (continued)                  

Exelon Corp.

       343,199     $     15,038,980  

PG&E Corp.

       678,765       11,457,553  
     

 

 

  
        32,403,536  
Electrical Equipment — 0.1%                  

Sensata Technologies Holding PLC

       58,973       1,536,836  
     

 

 

  
Electronic Equipment, Instruments & Components — 0.2%  

Keysight Technologies, Inc.(a)

      28,581       4,488,360  
     

 

 

  
Entertainment — 1.1%                  

Electronic Arts, Inc.

       100,326       14,424,872  

Walt Disney Co. (The)

       44,896       5,075,044  
     

 

 

  
        19,499,916  
Financial Services — 2.4%                  

Fidelity National Information Services, Inc.

       265,304       21,120,851  

Global Payments, Inc.

       92,745       7,012,450  

Visa, Inc., Class A

       11,324       4,135,412  

Voya Financial, Inc.

       156,947       10,440,114  
     

 

 

  
        42,708,827  
Food Products — 1.6%                  

Kraft Heinz Co. (The)

       685,391       18,320,501  

Lamb Weston Holdings, Inc.

       187,266       10,445,698  
     

 

 

  
        28,766,199  
Ground Transportation — 0.5%                  

CSX Corp.

       306,310       9,676,333  
     

 

 

  
Health Care Equipment & Supplies — 4.8%        

Baxter International, Inc.

       1,217,718       37,140,399  

Becton Dickinson & Co.

       136,267       23,518,322  

Koninklijke Philips NV

       326,408       7,526,822  

Medtronic PLC

       221,590       18,387,538  
     

 

 

  
        86,573,081  
Health Care Providers & Services — 5.1%        

Cardinal Health, Inc.

       217,448       33,582,669  

Centene Corp.(a)

      93,367       5,269,634  

Cigna Group (The)

       19,161       6,067,139  

CVS Health Corp.

       349,628       22,390,177  

Elevance Health, Inc.

       22,467       8,623,733  

Labcorp Holdings, Inc.

       64,623       16,089,188  
     

 

 

  
        92,022,540  
Health Care REITs — 0.5%                  

Healthcare Realty Trust, Inc.

       564,800       8,189,600  
     

 

 

  
Household Durables — 0.4%                  

Sony Group Corp., ADR(b)

      284,745       7,511,573  
     

 

 

  
Household Products — 0.8%                  

Henkel AG & Co. KGaA, Preference Shares, NVS

       180,373       14,452,397  
     

 

 

  
Industrial REITs — 0.8%                  

Rexford Industrial Realty, Inc.

       259,455       9,143,194  

STAG Industrial, Inc.

       139,059       4,947,719  
     

 

 

  
        14,090,913  
Insurance — 2.4%                  

American International Group, Inc.

       171,971       14,555,626  

Fidelity National Financial, Inc., Class A

       275,677       15,098,829  

Willis Towers Watson PLC

       42,489       13,449,893  
     

 

 

  
        43,104,348  
IT Services — 0.5%                  

Cognizant Technology Solutions Corp., Class A

       102,806       8,326,258  
     

 

 

  
Leisure Products — 0.3%                  

Hasbro, Inc.

       90,798       6,057,135  
     

 

 

  
 

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   5

Schedule of Investments (continued)

May 31, 2025

   

BlackRock High Equity Income Fund

(Percentages shown are based on Net Assets)

 

Security         

 

Shares

     Value  
Machinery — 0.7%                  

CNH Industrial NV

       395,556     $      4,948,406  

Fortive Corp.

       97,090       6,814,747  
     

 

 

  
        11,763,153  
Media — 4.3%                  

Comcast Corp., Class A

       1,036,396       35,828,210  

Paramount Global, Class B, NVS

       822,781       9,955,650  

WPP PLC

       3,850,653       31,098,049  
     

 

 

  
        76,881,909  
Metals & Mining — 0.3%                  

Teck Resources Ltd., Class B

       162,732       6,029,221  
     

 

 

  
Multi-Utilities — 0.4%                  

Sempra

       94,125       7,397,284  
     

 

 

  
Oil, Gas & Consumable Fuels — 3.7%        

BP PLC

       3,779,521       18,376,408  

Hess Corp.

       135,967       17,973,478  

Kosmos Energy Ltd.(a)

      7,054,416       11,710,331  

Shell PLC

       550,011       18,147,574  
     

 

 

  
        66,207,791  
Pharmaceuticals — 1.5%                  

Bayer AG, Registered Shares

       325,567       9,165,859  

Sanofi SA

       179,813       17,808,851  
     

 

 

  
        26,974,710  
Professional Services — 2.2%                  

Leidos Holdings, Inc.

       86,149       12,794,849  

SS&C Technologies Holdings, Inc.

       337,428       27,267,557  
     

 

 

  
        40,062,406  
Semiconductors & Semiconductor Equipment — 1.1%  

Intel Corp.

       79,611       1,556,395  

NVIDIA Corp.

       44,223       5,975,854  

STMicroelectronics NV, NY Shares, ADR

       465,819       11,650,133  
     

 

 

  
        19,182,382  
Software — 1.1%                  

Microsoft Corp.

       42,675       19,645,863  
     

 

 

  
Specialized REITs — 0.8%                  

Crown Castle, Inc.

       137,253       13,773,338  
     

 

 

  
Technology Hardware, Storage & Peripherals — 2.9%  

HP, Inc.

       550,499       13,707,425  

Samsung Electronics Co. Ltd., Registered Shares, GDR(c)

      28,336       28,537,013  

Western Digital Corp.(a)

      196,901       10,150,247  
     

 

 

  
        52,394,685  
Textiles, Apparel & Luxury Goods — 1.4%        

Burberry Group PLC

       436,184       6,101,972  

Capri Holdings Ltd.(a)

      316,943       5,743,007  

NIKE, Inc., Class B

       95,471       5,784,588  

Swatch Group AG (The)

       47,213       7,965,129  
     

 

 

  
        25,594,696  
Tobacco — 0.9%                  

British American Tobacco PLC

       355,396       15,999,363  
     

 

 

  
Trading Companies & Distributors — 0.5%        

WESCO International, Inc.

       54,940       9,223,877  
     

 

 

  

Total Common Stocks — 66.2%
(Cost: $1,033,072,200)

 

     1,188,084,458  
     

 

 

  
Security         

Par

(000)

     Value  

Equity-Linked Notes

      
Aerospace & Defense — 1.6%                  

Barclays Capital, Inc. (Airbus SE) 26.96% 06/30/25

     EUR       39,300     $      7,070,529  

Morgan Stanley & Co. LLC (Boeing Co. (The)) Series DMTH 20.32% 06/12/25

     USD       29,900       5,659,108  

Toronto-Dominion Bank (L3Harris Technologies, Inc.) 21.78% 07/21/25

       64,000       15,678,080  
     

 

 

  
        28,407,717  
Air Freight & Logistics — 0.3%                  

Nomura Securities International, Inc. (FedEx Corp.) 25.13% 07/14/25

       22,700       4,928,821  
     

 

 

  
Automobile Components — 0.5%                  

BNP Paribas Securities Corporation (Aptiv PLC) 29.81% 06/12/25

       103,100       6,067,817  

JP Morgan Securities LLC (Lear Corp.) Series MU0V 28.92% 06/12/25

       31,100       2,782,018  
     

 

 

  
        8,849,835  
Automobiles — 0.2%                  

Mizuho Securities USA LLC (General Motors Co.) 19.82% 07/14/25

       73,300       3,620,619  
     

 

 

  
Banks — 3.8%                  

Barclays Capital, Inc. (First Citizens BancShares, Inc.) 20.43% 07/24/25

       12,400       22,711,455  

Citigroup Global Markets, Inc. (First Citizens BancShares, Inc.) 12.89% 06/02/25

       11,600       21,399,213  

JP Morgan Securities LLC (Wells Fargo & Co.) Series N0Q2 18.63% 07/03/25

       318,300       23,893,708  
     

 

 

  
        68,004,376  
Beverages — 0.4%                  

Mizuho Securities USA LLC (Keurig Dr. Pepper, Inc.) 17.00% 07/10/25

       123,600       4,133,405  

RBC Capital Markets LLC (Pernod Ricard SA) 27.47% 06/30/25

     EUR       26,300       2,766,854  
     

 

 

  
        6,900,259  
Broadline Retail — 0.7%                  

BNP Paribas Securities Corporation (PDD Holdings, Inc.) 31.04% 06/12/25

     USD       67,000       6,479,140  

SG Americas Securities LLC (Amazon.com, Inc.) 21.36% 06/09/25

       28,900       5,801,199  
     

 

 

  
        12,280,339  
Building Products — 0.2%                  

Morgan Stanley & Co. LLC (Johnson Controls International PLC) Series MU19 25.52% 06/26/25

       42,400       4,019,613  
     

 

 

  
Capital Markets — 0.7%                  

JP Morgan Securities LLC (Intercontinental Exchange, Inc.) Series MTOD 17.65% 06/26/25

       31,000       5,509,451  

SG Americas Securities LLC (Carlyle Group, Inc. (The)) 19.65% 07/10/25

       156,500       7,155,950  
     

 

 

  
        12,665,401  
Chemicals — 1.6%                  

Barclays Capital, Inc. (PPG Industries, Inc.) 17.55% 07/24/25

       77,100       8,478,687  

BMO Capital Markets Corp. (PPG Industries, Inc.) 27.20% 06/02/25

       51,100       5,392,976  

Nomura Securities International, Inc. (International Flavors & Fragrances, Inc.) 24.67% 06/26/25

       89,900       6,911,210  
 

 

 

6  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock High Equity Income Fund

(Percentages shown are based on Net Assets)

 

Security         

Par

(000)

     Value  
Chemicals (continued)                  

RBC Capital Markets LLC (Air Products & Chemicals, Inc.) 20.83% 06/20/25

     USD       21,700     $      6,006,864  

Toronto-Dominion Bank (Albemarle Corp.) 25.80% 07/10/25

       34,600       1,952,142  
     

 

 

  
        28,741,879  
Commercial Services & Supplies — 0.4%        

Barclays Capital, Inc. (Rentokil Initial PLC) 29.03% 07/17/25

     GBP       1,498,100       7,000,037  
     

 

 

  
Communications Equipment — 0.5%        

SG Americas Securities LLC (Cisco Systems, Inc.) 17.45% 06/09/25

     USD       161,100       9,548,438  
     

 

 

  
Consumer Staples Distribution & Retail — 1.0%        

Morgan Stanley & Co. LLC (Dollar General Corp.) Series 0004 20.82% 06/16/25

       92,600       8,852,174  

SG Americas Securities LLC (Dollar Tree, Inc.) 32.59% 06/09/25

       100,600       8,614,571  
     

 

 

  
        17,466,745  
Containers & Packaging — 0.7%                  

Mizuho Securities USA LLC (Sealed Air Corp.) 20.92% 07/03/25

       147,238       4,641,564  

Morgan Stanley & Co. LLC (Sealed Air Corp.) Series MU18 22.27% 06/26/25

       117,700       3,603,373  

RBC Capital Markets LLC (Sealed Air Corp.) 23.57% 06/26/25

       169,050       5,230,603  
     

 

 

  
        13,475,540  
Diversified Telecommunication Services — 0.5%        

Mizuho Securities USA LLC (Verizon Communications, Inc.) 16.32% 07/03/25

       207,800       8,923,594  
     

 

 

  
Electric Utilities — 1.3%                  

JP Morgan Securities LLC (American Electric Power Co., Inc.) Series MU0W 17.57% 06/12/25

       36,100       3,757,351  

Mizuho Securities USA LLC (PG&E Corp.) 21.22% 07/21/25

       501,600       8,406,315  

SG Americas Securities LLC (Exelon Corp.) 14.96% 07/10/25

       253,600       11,050,612  
     

 

 

  
        23,214,278  
Electrical Equipment — 0.2%                  

Morgan Stanley & Co. LLC (Sensata Technologies Holding PLC) Series DMTG 29.47% 06/12/25

       167,100       3,986,918  
     

 

 

  
Electronic Equipment, Instruments & Components — 0.2%  

SG Americas Securities LLC (Keysight Technologies, Inc.) 22.72% 07/10/25

       21,000       3,363,997  
     

 

 

  
Entertainment — 0.7%                  

Mizuho Securities USA LLC (Walt Disney Co. (The)) 19.32% 07/10/25

       33,100       3,722,983  

Nomura Securities International, Inc. (Electronic Arts, Inc.) 20.40% 06/20/25

       56,500       8,180,395  
     

 

 

  
        11,903,378  
Financial Services — 1.6%                  

Mizuho Securities USA LLC (Visa, Inc.) 19.32% 07/21/25

       12,500       4,470,475  

Nomura Securities International, Inc. (Voya Financial, Inc.) 29.11% 06/20/25

       101,100       6,282,307  

SG Americas Securities LLC (Global Payments, Inc.) 27.08% 06/09/25

       60,600       4,580,342  

Toronto-Dominion Bank (Fidelity National Information Services, Inc.) 19.22% 06/16/25

       169,700       13,513,024  
     

 

 

  
        28,846,148  
Security         

Par

(000)

     Value  
Food Products — 0.9%                  

BNP Paribas Securities Corporation (Kraft Heinz Co. (The)) 21.09% 07/21/25

     USD       411,200     $     11,065,392  

BNP Paribas Securities Corporation (Lamb Weston Holdings, Inc.) 21.61% 07/14/25

       112,300       6,087,005  
     

 

 

  
        17,152,397  
Health Care Equipment & Supplies — 1.0%  

JP Morgan Securities LLC (Koninklijke Philips NV) Series MTOP 58.21% 06/05/25

     EUR       212,200       4,920,678  

Mizuho Securities USA LLC (Medtronic PLC) 20.02% 07/14/25

     USD       163,700       13,646,418  
     

 

 

  
        18,567,096  
Health Care Providers & Services — 2.6%        

BMO Capital Markets Corp. (Cigna Group (The)) 20.84% 06/09/25

       11,300       3,565,320  

BNP Paribas Securities Corporation (Elevance Health, Inc.) 30.79% 07/21/25

       18,300       6,949,425  

Mizuho Securities USA LLC (Centene Corp.) 24.27% 06/26/25

       68,900       3,916,573  

Morgan Stanley & Co. LLC (CVS Health Corp.) Series MU17 24.17% 06/26/25

       258,300       16,686,329  

RBC Capital Markets LLC (CVS Health Corp.) 17.48% 06/26/25

       52,510       3,390,136  

UBS Securities LLC (Labcorp Holdings, Inc.) 17.30% 07/03/25

       47,600       11,848,980  
     

 

 

  
        46,356,763  
Household Products — 0.3%                  

RBC Capital Markets LLC (Henkel AG & Co. KGaA) 34.71% 06/05/25

     EUR       64,100       5,079,796  
     

 

 

  
Industrial REITs — 0.2%                  

BNP Paribas Securities Corporation (STAG Industrial, Inc.) 16.50% 07/14/25

     USD       102,700       3,631,478  
     

 

 

  
Insurance — 1.9%                  

Nomura Securities International, Inc. (Fidelity National Financial, Inc.) 17.30% 06/20/25

       54,940       3,009,904  

Nomura Securities International, Inc. (Fidelity National Financial, Inc.) 22.84% 06/20/25

       203,600       11,184,070  

Nomura Securities International, Inc. (Willis Towers Watson PLC) 14.78% 07/21/25

       6,220       1,931,990  

Toronto-Dominion Bank (American International Group, Inc.) 19.41% 06/16/25

       111,900       9,417,530  

Toronto-Dominion Bank (Willis Towers Watson PLC) 23.01% 07/21/25

       25,100       7,852,033  
     

 

 

  
        33,395,527  
IT Services — 0.5%                  

Morgan Stanley & Co. LLC (Cognizant Technology Solutions Corp.) Series DMTI 23.07% 06/12/25

       125,200       9,521,091  
     

 

 

  
Leisure Products — 0.4%                  

RBC Capital Markets LLC (Hasbro, Inc.) 22.15% 06/16/25

       103,500       6,728,375  
     

 

 

  
Machinery — 0.2%                  

JP Morgan Securities LLC (CNH Industrial NV) Series EMUb 22.95% 07/10/25

       292,300       3,731,914  
     

 

 

  
Metals & Mining — 0.2%                  

RBC Capital Markets LLC (Teck Resources Ltd.) 21.17% 07/14/25

       120,200       4,410,663  
     

 

 

  
Multi-Utilities — 0.3%                  

RBC Capital Markets LLC (Sempra) 23.38% 06/16/25

       64,400       4,989,988  
     

 

 

  
 

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   7

Schedule of Investments (continued)

May 31, 2025

   

BlackRock High Equity Income Fund

(Percentages shown are based on Net Assets)

 

Security         

Par

(000)

     Value  
Oil, Gas & Consumable Fuels — 1.3%        

Barclays Capital, Inc. (BP PLC) 24.28% 07/17/25

     GBP       2,286,600     $     11,056,735  

Barclays Capital, Inc. (Shell PLC) 30.84% 06/30/25

       406,500       13,292,624  
     

 

 

  
        24,349,359  
Pharmaceuticals — 1.0%                  

JP Morgan Securities LLC (Bayer AG) Series MTOQ 40.77% 06/05/25

     EUR       208,000       5,352,518  

RBC Capital Markets LLC (Sanofi SA) 20.17% 07/17/25

       132,900       13,460,549  
     

 

 

  
        18,813,067  
Professional Services — 1.4%                  

Morgan Stanley & Co. LLC (SS&C Technologies Holdings, Inc.) Series 0003 23.13% 06/16/25

     USD       77,900       5,993,644  

Nomura Securities International, Inc. (Leidos Holdings, Inc.) 22.94% 06/20/25

       47,700       7,090,410  

Nomura Securities International, Inc. (SS&C Technologies Holdings, Inc.) 22.12% 06/26/25

       118,200       9,343,934  

SG Americas Securities LLC (Robert Half, Inc.) 23.55% 06/26/25

       62,000       2,874,906  
     

 

 

  
        25,302,894  
Semiconductors & Semiconductor Equipment — 1.1%  

BNP Paribas Securities Corporation (STMicroelectronics NV) 24.12% 07/24/25

       279,400       7,082,790  

Citigroup Global Markets, Inc. (STMicroelectronics NV) 29.01% 06/02/25

       317,700       6,923,360  

Mizuho Securities USA LLC (NVIDIA Corp.) 25.72% 07/14/25

       26,500       3,588,134  

SG Americas Securities LLC (Intel Corp.) 36.63% 06/09/25

       134,900       2,663,918  
     

 

 

  
        20,258,202  
Software — 1.5%                  

BNP Paribas Securities Corporation (Microsoft Corp.) 12.72% 07/24/25

       31,400       14,382,456  

HSBC Bank PLC (Microsoft Corp.) Series 0057 10.30% 06/02/25

       30,800       12,922,201  
     

 

 

  
        27,304,657  
Specialized REITs — 0.6%                  

Nomura Securities International, Inc. (Crown Castle, Inc.) 23.16% 07/14/25

       101,400       10,173,373  
     

 

 

  
Technology Hardware, Storage & Peripherals — 1.4%        

BNP Paribas Securities Corporation (Western Digital Corp.) 22.13% 07/24/25

       145,500       7,621,290  

Citigroup Global Markets, Inc. (Western Digital Corp.) 29.51% 06/02/25

       161,400       6,479,105  

SG Americas Securities LLC (HP, Inc.) 22.01% 07/10/25

       406,800       10,290,565  
     

 

 

  
        24,390,960  
Security         

Par

(000)

     Value  
Textiles, Apparel & Luxury Goods — 0.8%        

Barclays Capital, Inc. (Burberry Group PLC) 45.60% 06/30/25

     GBP       322,300     $ 3,491,400  

Barclays Capital, Inc. (Swatch Group AG (The)) 34.56% 06/30/25

     CHF       41,900       7,023,360  

SG Americas Securities LLC (NIKE, Inc.) 27.51% 06/09/25

     USD       61,500       3,714,155  
     

 

 

  
        14,228,915  
Tobacco — 0.7%                  

RBC Capital Markets LLC (British American Tobacco PLC) 14.07% 06/05/25

     GBP       269,800       11,911,421  
     

 

 

  

Total Equity-Linked Notes — 35.4%
(Cost: $631,958,449)

         636,445,868  
     

 

 

  

Total Long-Term Investments — 101.6%
(Cost: $1,665,030,649)

 

       1,824,530,326  
     

 

 

  
            Shares         

Short-Term Securities

      
Money Market Funds — 5.0%                  

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(d)(e)(f)

      6,294,282       6,296,800  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(d)(e)

      83,051,080       83,051,080  
     

 

 

  

Total Short-Term Securities — 5.0%
(Cost: $89,347,880)

         89,347,880  
     

 

 

  

Total Investments — 106.6%
(Cost: $1,754,378,529)

         1,913,878,206  

Liabilities in Excess of Other Assets — (6.6)%

 

     (118,707,526 ) 
     

 

 

  

Net Assets — 100.0%

       $  1,795,170,680  
     

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

8  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock High Equity Income Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		     Shares
Held at
05/31/25		     Income    

Capital

Gain

Distributions
from Underlying
Funds

  

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 1,740,145     $ 4,560,347 (a)    $ —     $ (3,692 )    $ —     $ 6,296,800       6,294,282     $ 9,845 (b)     $ —  

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     19,702,202       63,348,878 (a)      —       —       —       83,051,080       83,051,080       2,609,586       —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $ (3,692 )    $ —     $  89,347,880       $  2,619,431     $ —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
      Level 1      Level 2      Level 3      Total  

Assets

            

Investments

            

Long-Term Investments

            

Common Stocks

            

Aerospace & Defense

    $     53,254,727      $    5,251,966      $ —      $     58,506,693  

Automobile Components

      15,351,884        —        —        15,351,884  

Automobiles

      4,923,445        —        —        4,923,445  

Banks

      107,588,971        —        —        107,588,971  

Beverages

      10,566,656        3,695,087        —        14,261,743  

Broadline Retail

      19,238,060        —        —        19,238,060  

Building Products

      6,600,606        —        —        6,600,606  

Capital Markets

      33,846,024        —        —        33,846,024  

Chemicals

      40,269,833        —        —        40,269,833  

Commercial Services & Supplies

      —        11,448,617        —        11,448,617  

Communications Equipment

      15,576,995        —        —        15,576,995  

Consumer Staples Distribution & Retail

      24,925,151        —        —        24,925,151  

Containers & Packaging

      12,640,947        —        —        12,640,947  

Diversified Telecommunication Services

      12,366,959        —        —        12,366,959  

Electric Utilities

      32,403,536        —        —        32,403,536  

Electrical Equipment

      1,536,836        —        —        1,536,836  

Electronic Equipment, Instruments & Components

      4,488,360        —        —        4,488,360  

Entertainment

      19,499,916        —        —        19,499,916  

Financial Services

      42,708,827        —        —        42,708,827  

Food Products

      28,766,199        —        —        28,766,199  

Ground Transportation

      9,676,333        —        —        9,676,333  

Health Care Equipment & Supplies

      79,046,259        7,526,822        —        86,573,081  

Health Care Providers & Services

      92,022,540        —        —        92,022,540  

Health Care REITs

      8,189,600        —        —        8,189,600  

Household Durables

      7,511,573        —        —        7,511,573  

Household Products

      —        14,452,397        —        14,452,397  

Industrial REITs

      14,090,913        —        —        14,090,913  

Insurance

      43,104,348        —        —        43,104,348  

IT Services

      8,326,258        —        —        8,326,258  

Leisure Products

      6,057,135        —        —        6,057,135  

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   9

Schedule of Investments (continued)

May 31, 2025

   

BlackRock High Equity Income Fund

 

 

Fair Value Hierarchy as of Period End (continued)

 

         
      Level 1      Level 2      Level 3      Total  

Common Stocks (continued)

            

Machinery

    $ 11,763,153      $ —      $ —      $ 11,763,153  

Media

      45,783,860        31,098,049        —        76,881,909  

Metals & Mining

      6,029,221        —        —        6,029,221  

Multi-Utilities

      7,397,284        —        —        7,397,284  

Oil, Gas & Consumable Fuels

      29,683,809        36,523,982        —        66,207,791  

Pharmaceuticals

      —        26,974,710        —        26,974,710  

Professional Services

      40,062,406        —        —        40,062,406  

Semiconductors & Semiconductor Equipment

      19,182,382        —        —        19,182,382  

Software

      19,645,863        —        —        19,645,863  

Specialized REITs

      13,773,338        —        —        13,773,338  

Technology Hardware, Storage & Peripherals

      23,857,672        28,537,013        —        52,394,685  

Textiles, Apparel & Luxury Goods

      11,527,595        14,067,101        —        25,594,696  

Tobacco

      —        15,999,363        —        15,999,363  

Trading Companies & Distributors

      9,223,877        —        —        9,223,877  

Equity-Linked Notes

      —        636,445,868        —        636,445,868  

Short-Term Securities

            

Money Market Funds

      89,347,880        —        —        89,347,880  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $  1,081,857,231      $  832,020,975      $ —      $  1,913,878,206  
  

 

 

     

 

 

     

 

 

     

 

 

  

A reconciliation of Level 3 financial instruments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

      Equity-Linked
Notes		          

Assets

      

Opening Balance, as of May 31, 2024

    $ 20,384,632     

Transfers into Level 3

      —     

Transfers out of Level 3

      —     

Accrued discounts/premiums

      —     

Net realized gain (loss)

      (249,328 )    

Net change in unrealized appreciation (depreciation)(a)(b)

     (101,215 )    

Purchases

      —     

Sales

      (20,034,089 )    
  

 

 

     

Closing Balance, as of May 31, 2025

    $ —     
  

 

 

     

Net change in unrealized appreciation (depreciation) on investments still held at May 31, 2025(b)

   $ —     
  

 

 

     

 

  (a) 

Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.

 
  (b) 

Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at May 31, 2025, is generally due to investments no longer held or categorized as Level 3 at period end.

 

See notes to financial statements.

 

 

10  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Statements of Assets and Liabilities

May 31, 2025

 

 

    

BlackRock

Energy
Opportunities

Fund

    

BlackRock

High Equity Income

Fund

  

ASSETS

    

Investments, at value — unaffiliated(a)(b)

  $ 260,829,758     $ 1,824,530,326  

Investments, at value — affiliated(c)

    1,948,783       89,347,880  

Cash

     38,950       196,417  

Foreign currency, at value(d)

    23,070       1,964,453  

Receivables:

    

Investments sold

     1,295,211       —  

Securities lending income — affiliated

     —537    

Capital shares sold

     107,643       2,804,771  

Dividends — unaffiliated

     1,313,823       2,520,778  

Dividends — affiliated

     14,955       221,990  

Interest — unaffiliated

     —       4,270,152  

From the Manager

     15,155       74,355  

Prepaid expenses

     32,274       50,142  
 

 

 

    

 

 

  

Total assets

     265,619,622       1,925,981,801  
 

 

 

    

 

 

  

LIABILITIES

    

Collateral on securities loaned

     —       6,296,800  

Payables:

    

Investments purchased

     —       115,232,012  

Administration fees

     9,720       59,527  

Capital shares redeemed

     481,761       6,659,446  

Income dividend distributions

     —       829,613  

Interest expense

     4,648       —  

Investment advisory fees

     165,309       1,090,450  

IRS compliance fee for foreign withholding tax claims

     24,335       —  

Trustees’ and Officer’s fees

     339       2,422  

Other accrued expenses

     41,208       157,501  

Other affiliate fees

     15,411       4,847  

Professional fees

     33,893       33,181  

Service and distribution fees

     48,341       111,480  

Transfer agent fees

     116,317       333,842  
 

 

 

    

 

 

  

Total liabilities

     941,282       130,811,121  
 

 

 

    

 

 

  

Commitments and contingent liabilities

    

NET ASSETS

   $ 264,678,340     $ 1,795,170,680  
 

 

 

    

 

 

  

NET ASSETS CONSIST OF:

    

Paid-in capital

   $ 474,843,831     $ 1,827,538,607  

Accumulated loss

     (210,165,491 )      (32,367,927 ) 
 

 

 

    

 

 

  

NET ASSETS

   $ 264,678,340     $ 1,795,170,680  
 

 

 

    

 

 

  

(a) Investments, at cost — unaffiliated

   $ 195,423,054     $ 1,665,030,649  

(b) Securities loaned, at value

   $ —     $ 6,106,970  

(c)  Investments, at cost — affiliated

   $ 1,948,783     $ 89,347,880  

(d) Foreign currency, at cost

   $ 23,129     $ 1,965,823  

 

 

S T A T E M E N T S O F A S S E T S A N D L I A B I L I T I E S

   11

Statements of Assets and Liabilities (continued)

May 31, 2025

 

 

    

BlackRock

Energy
Opportunities

Fund

     

BlackRock

High Equity Income

Fund

  

NET ASSET VALUE

     
Institutional             

Net assets

   $ 89,899,245      $ 1,294,019,575  
 

 

 

     

 

 

  

Shares outstanding

     6,833,675        46,449,660  
 

 

 

     

 

 

  

Net asset value

   $ 13.16      $ 27.86  
 

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited  
 

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001  
 

 

 

     

 

 

  
Investor A             

Net assets

   $ 159,042,235      $ 286,434,531  
 

 

 

     

 

 

  

Shares outstanding

     12,483,162        12,290,370  
 

 

 

     

 

 

  

Net asset value

   $ 12.74      $ 23.31  
 

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited  
 

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001  
 

 

 

     

 

 

  
Investor C             

Net assets

   $ 15,736,860      $ 60,229,325  
 

 

 

     

 

 

  

Shares outstanding

     1,286,832        4,163,892  
 

 

 

     

 

 

  

Net asset value

   $ 12.23      $ 14.46  
 

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited  
 

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001  
 

 

 

     

 

 

  
Class K             

Net assets

     N/A      $ 154,487,249  
 

 

 

     

 

 

  

Shares outstanding

     N/A        5,548,645  
 

 

 

     

 

 

  

Net asset value

     N/A      $ 27.84  
 

 

 

     

 

 

  

Shares authorized

     N/A        Unlimited  
 

 

 

     

 

 

  

Par value

     N/A      $ 0.001  
 

 

 

     

 

 

  

See notes to financial statements.

 

 

12  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Statements of Operations

Year Ended May 31, 2025

 

 

    

BlackRock

Energy

Opportunities

Fund

    

BlackRock

High Equity Income

Fund

  

INVESTMENT INCOME

    

Dividends — unaffiliated

   $ 10,363,590     $ 31,558,189  

Dividends — affiliated

     229,204       2,609,586  

Interest — unaffiliated

     —       138,199,235  

Securities lending income — affiliated — net

     47       9,845  

Foreign taxes withheld

     (342,632 )      (695,564 ) 

Foreign withholding tax claims

     403,981       166,393  

IRS compliance fee for foreign withholding tax claims

     (2,763 )      —  
 

 

 

    

 

 

  

Total investment income

     10,651,427       171,847,684  
 

 

 

    

 

 

  

EXPENSES

    

Investment advisory

     2,304,832       15,131,086  

Service and distribution — class specific

     633,402       1,356,720  

Transfer agent — class specific

     456,151       1,694,562  

Administration

     130,607       759,286  

Professional

     85,207       75,358  

Administration — class specific

     61,476       385,143  

Registration

     60,698       122,744  

Accounting services

     53,318       141,829  

Printing and postage

     29,340       47,472  

Custodian

     19,226       142,722  

Trustees and Officer

     8,229       20,399  

Miscellaneous

     14,819       46,382  
 

 

 

    

 

 

  

Total expenses excluding interest expense

     3,857,305       19,923,703  

Interest expense

     109       67,283  
 

 

 

    

 

 

  

Total expenses

     3,857,414       19,990,986  
 

 

 

    

 

 

  

Less:

    

Administration fees waived — class specific

     (25,186 )      (383,628 ) 

Fees waived and/or reimbursed by the Manager

     (9,967 )      (1,081,482 ) 

Transfer agent fees waived and/or reimbursed — class specific

     (106,396 )      (834,101 ) 
 

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     3,715,865       17,691,775  
 

 

 

    

 

 

  

Net investment income

     6,935,562       154,155,909  
 

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

    

Net realized gain (loss) from:

    

Investments — unaffiliated

     25,329,082       (49,937,804 ) 

Investments — affiliated

     (120 )      (3,692 ) 

Foreign currency transactions

     (49,166 )      497,229  
 

 

 

    

 

 

  
    25,279,796       (49,444,267 ) 
 

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

    

Investments — unaffiliated

     (58,219,363 )      (42,891,514 ) 

Foreign currency translations

     4,046       127,614  
 

 

 

    

 

 

  
    (58,215,317 )      (42,763,900 ) 
 

 

 

    

 

 

  

Net realized and unrealized loss

     (32,935,521 )      (92,208,167 ) 
 

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $ (25,999,959 )    $ 61,947,742  
 

 

 

    

 

 

  

See notes to financial statements.

 

 

S T A T E M E N T S O F O P E R A T I O N S

   13

 

Statements of Changes in Net Assets

 

 

    BlackRock Energy Opportunities Fund  
     Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

 

  

OPERATIONS

    

Net investment income

   $ 6,935,562     $ 7,995,879  

Net realized gain

     25,279,796       20,452,624  

Net change in unrealized appreciation (depreciation)

     (58,215,317 )      54,592,066  
 

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     (25,999,959 )      83,040,569  
 

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

   

Institutional

     (2,737,473 )      (4,041,903 ) 

Investor A

     (4,137,028 )      (6,302,765 ) 

Investor C

     (292,886 )      (458,800 ) 
 

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (7,167,387 )      (10,803,468 ) 
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

    

Net decrease in net assets derived from capital share transactions

     (45,440,730 )      (105,569,884 ) 
 

 

 

    

 

 

  

NET ASSETS

    

Total decrease in net assets

     (78,608,076 )      (33,332,783 ) 

Beginning of year

     343,286,416       376,619,199  
 

 

 

    

 

 

  

End of year

   $ 264,678,340     $ 343,286,416  
 

 

 

    

 

 

  

 

(a) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.

 

See notes to financial statements.

  

 

 

 

14  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

 

Statements of Changes in Net Assets (continued)

 

 

    BlackRock High Equity Income Fund  
    

Year Ended

05/31/25

    

Year Ended

05/31/24

  

INCREASE (DECREASE) IN NET ASSETS

 

  

OPERATIONS

    

Net investment income

   $    154,155,909     $    138,011,642  

Net realized loss

     (49,444,267 )      (14,910,913 ) 

Net change in unrealized appreciation (depreciation)

     (42,763,900 )      218,437,823  
 

 

 

    

 

 

  

Net increase in net assets resulting from operations

     61,947,742       341,538,552  
 

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

   

Institutional

     (109,099,595 )      (101,737,937 ) 

Investor A

     (23,182,826 )      (19,982,439 ) 

Investor C

     (4,360,427 )      (3,614,308 ) 

Class K

     (17,164,484 )      (13,231,823 ) 
 

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (153,807,332 )      (138,566,507 ) 
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

    

Net decrease in net assets derived from capital share transactions

     (145,700,990 )      (139,152,881 ) 
 

 

 

    

 

 

  

NET ASSETS

    

Total increase (decrease) in net assets

     (237,560,580 )      63,819,164  

Beginning of year

     2,032,731,260       1,968,912,096  
 

 

 

    

 

 

  

End of year

   $  1,795,170,680     $  2,032,731,260  
 

 

 

    

 

 

  

 

(a) 

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

 

See notes to financial statements.

 

 

S T A T E M E N T S O F C H A N G E S I N N E T A S S E T S

   15

Financial Highlights

(For a share outstanding throughout each period)

 

 

    BlackRock Energy Opportunities Fund  
    Institutional  
     Year Ended
05/31/25		     Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 14.60     $ 11.94      $ 13.73     $ 8.55      $ 6.64  
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

    0.35       0.35        0.42       0.32        0.26  

Net realized and unrealized gain (loss)

     (1.44 )      2.75        (1.88 )      5.11        1.90  
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net increase (decrease) from investment operations

     (1.09 )      3.10        (1.46 )      5.43        2.16  
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Distributions from net investment income(b)

    (0.35 )      (0.44 )       (0.33 )      (0.25 )       (0.25 ) 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 13.16     $ 14.60      $ 11.94     $ 13.73      $ 8.55  
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

           

Based on net asset value

     (7.60 )%      26.56 %       (10.59 )%      65.17 %       33.50 % 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets(d)

           

Total expenses

     1.04 %      1.07 %       1.03 %      1.11 %       1.33 % 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.92 %      0.91 %       0.91 %      0.91 %       0.91 % 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed and excluding professional fees for foreign withholding tax claims

     0.91 %      0.91 %       0.91 %      0.91 %       0.91 % 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     2.54 %      2.59 %       3.28 %      3.05 %       3.75 % 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

            

Net assets, end of year (000)

   $ 89,899     $ 116,190      $ 153,530     $ 128,580      $ 52,377  
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     66 %      35 %       77 %      75 %       79 % 
 

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

16  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

    BlackRock Energy Opportunities Fund (continued)  
    Investor A  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 14.15      $ 11.58      $ 13.33      $ 8.31      $ 6.46  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

    0.29        0.29        0.37        0.27        0.23  

Net realized and unrealized gain (loss)

     (1.40 )       2.67        (1.84 )       4.97        1.84  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     (1.11 )       2.96        (1.47 )       5.24        2.07  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(b)

    (0.30 )       (0.39 )       (0.28 )       (0.22 )       (0.22 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 12.74      $ 14.15      $ 11.58      $ 13.33      $ 8.31  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     (8.00 )%       26.06 %       (10.97 )%       64.51 %       33.00 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     1.31 %       1.36 %       1.33 %       1.43 %       1.73 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     1.30 %       1.32 %       1.32 %       1.32 %       1.32 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed and excluding professional fees for foreign withholding tax claims

     1.29 %       1.32 %       1.32 %       1.32 %       1.32 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

     2.17 %       2.22 %       2.94 %       2.66 %       3.30 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

              

Net assets, end of year (000)

   $ 159,042      $ 209,291      $ 204,035      $ 232,979      $ 103,858  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     66 %       35 %       77 %       75 %       79 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   17

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

    BlackRock Energy Opportunities Fund (continued)  
    Investor C  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 13.61      $ 11.14      $ 12.83      $ 8.01      $ 6.24  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

    0.19        0.19        0.27        0.19        0.17  

Net realized and unrealized gain (loss)

     (1.36 )       2.57        (1.76 )       4.79        1.77  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     (1.17 )       2.76        (1.49 )       4.98        1.94  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions from net investment income(b)

    (0.21 )       (0.29 )       (0.20 )       (0.16 )       (0.17 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 12.23      $ 13.61      $ 11.14      $ 12.83      $ 8.01  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     (8.68 )%       25.20 %       (11.57 )%       63.37 %       31.89 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     2.01 %       2.10 %       2.05 %       2.16 %       2.53 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     2.00 %       2.04 %       2.03 %       2.04 %       2.04 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed and excluding professional fees for foreign withholding tax claims

     1.99 %       2.04 %       2.03 %       2.04 %       2.04 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

     1.51 %       1.49 %       2.22 %       1.92 %       2.60 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

              

Net assets, end of year (000)

   $ 15,737      $ 17,804      $ 19,054      $ 26,559      $ 10,699  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     66 %       35 %       77 %       75 %       79 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

18  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights

(For a share outstanding throughout each period)

 

 

    BlackRock High Equity Income Fund  
    Institutional  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 29.01      $ 26.23      $ 29.54      $ 29.99     $ 22.81  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

    2.31        1.89        1.86        1.99       1.81  

Net realized and unrealized gain (loss)

     (1.15 )       2.78        (3.25 )       (0.20 )      7.13  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     1.16        4.67        (1.39 )       1.79       8.94  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (2.31 )       (1.89 )       (1.86 )       (1.95 )      (1.76 ) 

From net realized gain

     —        —        (0.06 )       (0.29 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (2.31 )       (1.89 )       (1.92 )       (2.24 )      (1.76 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 27.86      $ 29.01      $ 26.23      $ 29.54     $ 29.99  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     4.06 %       18.41 %       (4.70 )%       6.28 %(d)       40.81 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.98 %       0.99 %       1.00 %       1.02 %      1.12 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.85 %       0.85 %       0.85 %       0.85 %      0.85 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     8.07 %       6.89 %       6.81 %       6.76 %      6.93 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $ 1,294,020      $ 1,446,440      $ 1,475,683      $ 953,582     $ 277,653  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     130 %       85 %       126 %       140 %      146 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   19

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

    BlackRock High Equity Income Fund (continued)  
    Investor A  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 24.27      $ 21.94      $ 24.73      $ 25.16     $ 19.14  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

    1.87        1.53        1.49        1.58       1.42  

Net realized and unrealized gain (loss)

     (0.96 )       2.32        (2.72 )       (0.14 )      6.03  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.91        3.85        (1.23 )       1.44       7.45  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (1.87 )       (1.52 )       (1.50 )       (1.58 )      (1.43 ) 

From net realized gain

     —        —        (0.06 )       (0.29 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (1.87 )       (1.52 )       (1.56 )       (1.87 )      (1.43 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 23.31      $ 24.27      $ 21.94      $ 24.73     $ 25.16  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     3.81 %       18.14 %       (4.96 )%       5.99 %(d)       40.44 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.22 %       1.23 %       1.24 %       1.31 %      1.40 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.10 %       1.10 %       1.10 %       1.10 %      1.10 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     7.83 %       6.65 %       6.54 %       6.41 %      6.64 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $ 286,435      $ 303,692      $ 296,254      $ 293,050     $ 208,207  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     130 %       85 %       126 %       140 %      146 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

20  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

    BlackRock High Equity Income Fund (continued)  
    Investor C  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 15.06      $ 13.62      $ 15.37      $ 15.75     $ 11.98  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

    1.05        0.84        0.82        0.87       0.78  

Net realized and unrealized gain (loss)

     (0.60 )       1.44        (1.68 )       (0.09 )      3.78  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.45        2.28        (0.86 )       0.78       4.56  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (1.05 )       (0.84 )       (0.83 )       (0.87 )      (0.79 ) 

From net realized gain

     —        —        (0.06 )       (0.29 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (1.05 )       (0.84 )       (0.89 )       (1.16 )      (0.79 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 14.46      $ 15.06      $ 13.62      $ 15.37     $ 15.75  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     3.01 %       17.22 %       (5.63 )%       5.17 %(d)      39.41 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.97 %       1.98 %       1.98 %       2.04 %      2.18 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.85 %       1.85 %       1.85 %       1.85 %      1.85 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     7.08 %       5.90 %       5.80 %       5.67 %      5.85 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $ 60,229      $ 62,685      $ 59,276      $ 42,543     $ 22,379  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     130 %       85 %       126 %       140 %      146 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   21

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

 

    BlackRock High Equity Income Fund (continued)  
    Class K  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 28.99      $ 26.21      $ 29.53      $ 30.00     $ 22.81  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

    2.32        1.91        1.87        2.00       1.78  

Net realized and unrealized gain (loss)

     (1.15 )       2.77        (3.25 )       (0.21 )      7.19  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     1.17        4.68        (1.38 )       1.79       8.97  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (2.32 )       (1.90 )       (1.88 )       (1.97 )      (1.78 ) 

From net realized gain

     —        —        (0.06 )       (0.29 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (2.32 )       (1.90 )       (1.94 )       (2.26 )      (1.78 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 27.84      $ 28.99      $ 26.21      $ 29.53     $ 30.00  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     4.11 %       18.48 %       (4.68 )%       6.27 %(d)      40.93 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.89 %       0.88 %       0.89 %       0.98 %      1.01 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.80 %       0.80 %       0.80 %       0.80 %      0.80 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     8.10 %       6.94 %       6.88 %       6.76 %      6.94 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $ 154,487      $ 219,915      $ 137,700      $ 535     $ 359  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     130 %       85 %       126 %       140 %      146 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

22  

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Notes to Financial Statements

 

1.  ORGANIZATION

BlackRock FundsSM (the “Trust”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. The Trust is organized as a Massachusetts business trust. The following, each of which is a series of the Trust, are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

     
Fund Name   Herein Referred To As    Diversification Classification

BlackRock Energy Opportunities Fund

   Energy Opportunities    Non-Diversified

BlackRock High Equity Income Fund

   High Equity Income    Diversified

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

 

       
Share Class   Initial Sales Charge    CDSC      Conversion Privilege

Institutional and Class K Shares

   No    No      None

Investor A Shares

   Yes    No(a)    None

Investor C Shares

   No    Yes(b)    To Investor A Shares after approximately 8 years

 

  (a) 

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 
  (b) 

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

 

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Multi-Asset Complex.

2.  SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Funds are informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Interest income, including amortization and accretion of premiums and discounts on debt securities, is recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of May 31, 2025, if any, are disclosed in the Statements of Assets and Liabilities.

Consistent with U.S. GAAP accrual requirements for uncertain tax positions, each Fund recognizes tax reclaims when the Fund determines that it is more likely than not that each Fund will sustain its position that it is due the reclaim.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   23

Notes to Financial Statements (continued)

 

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Cash: The Funds may maintain cash at their custodian which, at times may exceed United States federally insured limits. The Funds may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

Distributions: Distributions paid by Energy Opportunities are recorded on the ex-dividend dates. For High Equity Income, distributions from net investment income are declared daily and paid monthly. For High Equity Income, distributions of capital gains are recorded on the ex dividend dates and made at least annually. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

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

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

The Funds have an arrangement with their custodian whereby credits are earned on uninvested cash balances. For financial reporting purposes, custodian credits, if any, are included in interest income in the Statements of Operations.

Segment Reporting: The Funds adopted Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures (“ASU 2023-07”) during the period. The Funds’ adoption of the new standard impacted financial statement disclosures only and did not affect each Fund’s financial position or results of operations.

The Chief Financial Officer acts as the Funds’ Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance and allocating resources with respect to each Fund. The CODM has concluded that each Fund operates as a single operating segment since each Fund has a single investment strategy as disclosed in their prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Funds’ financial statements.

3.  INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of each Fund (the “Board”) has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

  ·  

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.

 

  ·  

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities are sold could differ from the prices used by a fund. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

  ·  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s net asset value (“NAV”).

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.

 

 

24  

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Notes to Financial Statements (continued)

 

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the measurement date.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs:

(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the underlying investment or comparable issuers

(ii) recapitalizations and other transactions across the capital structure

(iii) market or relevant indices multiples of comparable issuers

(iv) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks

(v) quoted prices for similar investments or assets in active markets

(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates

(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics

(viii) relevant market news and other public sources.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Certain information made available by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. 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 that each Fund has the ability to access for identical assets or liabilities;

 

  ·  

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

 

  ·  

Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4.  SECURITIES AND OTHER INVESTMENTS

Equity-Linked Notes: Equity-linked notes seek to generate income and provide exposure to the performance of an underlying security, group of securities or exchange-traded funds (the “underlying reference instrument”). In an equity-linked note, a fund purchases a note from a bank or broker-dealer and in return, the issuer provides for interest payments during the term of the note. At maturity or when the security is sold, a fund will either settle by taking physical delivery of the underlying reference instrument or by receipt of a cash settlement amount equal to the value of the note at termination or maturity. The use of equity-linked notes involves the risk that the value of the note changes

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   25

Notes to Financial Statements (continued)

 

unfavorably due to movements in the value of the underlying reference instrument. Equity-linked notes are considered general unsecured contractual obligations of the bank or broker-dealer. A fund must rely on the creditworthiness of the issuer for its investment returns.

Securities Lending: Certain Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedules of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Funds’ Schedules of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statements of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Fund’s securities on loan by counterparty which are subject to offset under an MSLA:

 

Fund Name/Counterparty    Securities
Loaned at Value		      Cash
Collateral Received(a)		      Non-Cash
Collateral Received,
at Fair Value(a) 		    

Net

Amount

  

High Equity Income

            

Citigroup Global Markets, Inc.

    $ 1,092,132      $ (1,092,132 )     $ —      $ —  

Morgan Stanley

      5,014,838        (5,014,838 )       —        —  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $ 6,106,970      $ (6,106,970 )     $ —      $
 		  
—		  
 
  

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by the Fund is disclosed in the Fund’s Statements of Assets and Liabilities.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5.  INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of each Fund, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

      Investment Advisory Fees  
Average Daily Net Assets   

Energy

Opportunities

  

First $1 billion

      0.750 % 

$1 billion - $2 billion 

      0.700  

$2 billion - $3 billion 

      0.675  

Greater than $3 billion

      0.650  

 

 

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Notes to Financial Statements (continued)

 

      Investment Advisory Fees  
Average Daily Net Assets   

High Equity

Income

  

First $1 billion

      0.810 % 

$1 billion - $3 billion 

      0.760  

$3 billion - $5 billion 

      0.730  

$5 billion - $10 billion 

      0.700  

Greater than $10 billion

      0.680  

With respect to Energy Opportunities, the Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL, for services it provides for that portion of the Fund for which BIL acts as Sub-Adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

Service and Distribution Fees: The Trust, on behalf of each 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, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

 

Share Class    Service Fees      Distribution Fees  

Investor A

      0.25 %       N/A  

Investor C

      0.25        0.75 % 

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

For the year ended May 31, 2025, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

 

Fund Name    Investor A      Investor C      Total

BlackRock Energy Opportunities Fund

    $ 459,316      $ 174,086      $ 633,402

BlackRock High Equity Income Fund

      740,582        616,138      1,356,720

Administration: The Trust, on behalf of each 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 each Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.

 

Average Daily Net Assets    Administration Fees  

First $500 million

      0.0425 % 

$500 million - $1 billion

      0.0400  

$1 billion - $2 billion

      0.0375  

$2 billion - $4 billion

      0.0350  

$4 billion - $13 billion

      0.0325  

Greater than $13 billion

      0.0300  

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

For the year ended May 31, 2025, the following table shows the class specific administration fees borne directly by each share class of each Fund:

 

Fund Name    Institutional      Investor A      Investor C      Class K      Total

Energy Opportunities

    $ 21,179      $ 36,809      $ 3,488      $ —      $ 61,476

High Equity Income

      270,940        59,329        12,341        42,533      385,143

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended May 31, 2025, the Funds did not pay any amounts to affiliates in return for these services.

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended May 31, 2025, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

Fund Name    Institutional      Investor A      Investor C      Class K      Total

Energy Opportunities

    $ 2,303      $ 29,354      $ 2,944      $ —      $ 34,601

High Equity Income

      3,900        22,782        3,580        659      30,921

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

  27

Notes to Financial Statements (continued)

 

For the year ended May 31, 2025, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

 

Fund Name    Institutional      Investor A      Investor C      Class K      Total

Energy Opportunities

    $ 149,062      $ 287,689      $ 19,400      $ —      $ 456,151

High Equity Income

      1,346,018        278,288        55,133        15,123      1,694,562

Other Fees: For the year ended May 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

 

Fund Name    Amounts

Energy Opportunities

    $ 10,803

High Equity Income

    29,263

For the year ended May 31, 2025, affiliates received CDSCs as follows:

 

Share Class    Energy
Opportunities		      High
Equity
Income

Investor A

    $ 1,410      $  309

Investor C

      29,060      3,058

Expense Limitations, Waivers and Reimbursements: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of a Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended May 31, 2025, the amounts waived were as follows:

 

Fund Name    Amounts Waived

Energy Opportunities

    $     3,723

High Equity Income

    39,425

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended May 31, 2025, there were no fees waived by the Manager pursuant to this arrangement.

With respect to each Fund, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

Fund Name    Institutional             Investor A              Investor C              Class K  

Energy Opportunities

      0.91 %         1.32 %          2.04 %          0.91 %(a) 

High Equity Income

      0.85                1.10                 1.85                 0.80 % 

 

  (a)

  There were no shares outstanding as of May 31, 2025.

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2026, unless approved by the Board, including a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended May 31, 2025, the amounts included in the Statements of Operations were as follows:

 

Fund Name    Amounts Waived

Energy Opportunities

    $     6,244

High Equity Income

    1,042,057

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific and transfer agent fees waived and/or reimbursed by the Manager — class specific, respectively, in the Statements of Operations. For the year ended May 31, 2025, class specific expense waivers and/or reimbursements were as follows:

 

 

     Administration Fees Waived by the Manager - Class Specific
  

 

 

Fund Name    Institutional      Investor A      Investor C      Class K      Total

 

Energy Opportunities

    $ 21,179      $ 3,646      $ 361      $ —      $  25,186

High Equity Income

       269,658          59,185          12,310         42,475      383,628

 

 

 

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Notes to Financial Statements (continued)

 

 

  
     Transfer Agent Fees Waived and/or Reimbursed by the Manager -  
     Class Specific  
  

 

 

  
Fund Name    Institutional      Investor A      Investor C      Class K      Total  

 

  

Energy Opportunities

    $ 101,715      $ 4,452      $ 229      $ —      $  106,396  

High Equity Income

       667,506         128,269         23,249         15,077        834,101  

 

  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Funds are responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Funds bear to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, the money market fund will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.

Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral, (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. Each Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, Energy Opportunities retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Pursuant to the current securities lending agreement, High Equity Income retains 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, Energy Opportunities, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. High Equity Income, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 84% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2025, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, High Equity Income would retain for the remainder of that calendar year securities lending income in an amount equal to 81% of securities lending income (which excluded collateral investment fees ), and this amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the year ended May 31, 2025, each Fund paid BIM the following amounts for securities lending agent services:

 

Fund Name    Amounts

Energy Opportunities

    $   10

High Equity Income

    2,160

Trustees and Officers: Certain trustees and/or officers of the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Trust’s Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors. For the year ended May 31, 2025, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

Fund Name    Purchases      Sales      Net Realized
Gain (Loss)		  

Energy Opportunities

    $ 651,957      $ —       $ —  

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   29

Notes to Financial Statements (continued)

 

6.

PURCHASES AND SALES

For the year ended May 31, 2025, purchases and sales of investments, excluding short-term securities and equity-linked notes, were as follows:

 

Fund Name    Purchases      Sales

Energy Opportunities

    $ 200,034,195      $ 245,030,266

High Equity Income

       1,582,418,589      1,733,966,123

 

7.

INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of May 31, 2025, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of date of these financial statements, all of which are subject to change, possibly with retroactive effect which may impact the Funds’ NAV.

The tax character of distributions paid was as follows:

 

Fund Name   

Year Ended

05/31/25

             

Year Ended

05/31/24

Energy Opportunities

         

Ordinary income

    $ 7,167,387         $  10,803,469
  

 

 

        

 

High Equity Income

         

Ordinary income

    $  153,807,332         $ 138,566,507
  

 

 

        

 

 

                       

As of May 31, 2025, the tax components of accumulated earnings (loss) were as follows:

 

 

  
Fund Name    Undistributed
Ordinary Income		      Non-expiring
Capital Loss
Carryforwards(a) 		      Net Unrealized
Gains (Losses)(b) 		      Total  

 

  

Energy Opportunities

    $ 2,925,587      $ (270,412,603 )     $ 57,321,525      $  (210,165,491 ) 

High Equity Income

      159,624        (94,298,012 )       61,770,461        (32,367,927 ) 

 

  

 

(a) 

Amounts available to offset future realized capital gains.

(b) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and the characterization of corporate actions.

During the year ended May 31, 2025, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:

 

Fund Name    Utilized

Energy Opportunities

    $ 22,053,859

As of May 31, 2025, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

Fund Name    Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		      Net Unrealized
Appreciation
(Depreciation)

Energy Opportunities

    $ 205,460,862      $ 63,798,358      $ (6,480,679 )     $ 57,317,679

High Equity Income

      1,852,126,630        98,528,185        (36,776,609 )     61,751,576

 

8.

BANK BORROWINGS

The Trust, on behalf of each Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds

 

 

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Notes to Financial Statements (continued)

 

rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2026 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2025, the Funds did not borrow under the credit agreement.

 

9.

PRINCIPAL RISKS

In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A Fund may invest in illiquid investments. An illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause each Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a Fund may lose value, regardless of the individual results of the securities and other instruments in which a Fund invests. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.

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

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a Fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the certain Funds invest.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   31

Notes to Financial Statements (continued)

 

10.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     Year Ended 05/31/25     Year Ended 05/31/24  
Fund Name/Share Class   Shares     Amount     Shares     Amount  

Energy Opportunities

        

Institutional

        

Shares sold

     2,415,823     $ 33,321,224       7,173,629     $ 97,116,078  

Shares issued in reinvestment of distributions

     194,227       2,730,593       314,646       4,030,855  

Shares redeemed

     (3,732,110 )      (50,997,270 )      (12,393,223 )      (165,638,410 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (1,122,060 )    $ (14,945,453 )      (4,904,948 )    $ (64,491,477 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     3,044,257     $ 40,806,852       3,464,629     $ 45,743,773  

Shares issued in reinvestment of distributions

     292,834       3,996,854       500,381       6,209,339  

Shares redeemed

     (5,642,592 )      (75,268,033 )      (6,800,384 )      (88,026,155 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (2,305,501 )    $ (30,464,327 )      (2,835,374 )    $ (36,073,043 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor C

        

Shares sold

     542,016     $ 7,024,241       176,928     $ 2,249,456  

Shares issued in reinvestment of distributions

     22,181       290,421       38,007       455,047  

Shares redeemed and automatic conversion of shares

     (585,964 )      (7,345,612 )      (617,417 )      (7,709,867 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (21,767 )    $ (30,950 )      (402,482 )    $ (5,005,364 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (3,449,328 )    $ (45,440,730 )      (8,142,804 )    $ (105,569,884 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

High Equity Income

        

Institutional

        

Shares sold

     18,635,786     $ 524,021,705       21,509,286     $ 588,083,365  

Shares issued in reinvestment of distributions

     3,663,485       105,083,107       3,537,819       97,630,330  

Shares redeemed

     (25,716,293 )      (718,766,553 )      (31,448,082 )      (861,048,299 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (3,417,022 )    $ (89,661,741 )      (6,400,977 )    $ (175,334,604 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     1,530,371     $ 36,595,669       1,989,055     $ 45,453,814  

Shares issued in reinvestment of distributions

     948,580       22,749,050       840,974       19,429,061  

Shares redeemed

     (2,703,518 )      (64,288,164 )      (3,817,910 )      (87,203,434 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (224,567 )    $ (4,943,445 )      (987,881 )    $ (22,320,559 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor C

        

Shares sold

     526,434     $ 7,784,988       608,558     $ 8,640,528  

Shares issued in reinvestment of distributions

     293,234       4,364,283       250,046       3,586,042  

Shares redeemed and automatic conversions of shares

     (817,683 )      (12,073,385 )      (1,050,128 )      (14,933,876 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    1,985     $ 75,886       (191,524 )    $ (2,707,306 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     1,473,885     $ 41,664,605       3,626,200     $ 96,784,712  

Shares issued in reinvestment of distributions

     597,649       17,164,290       473,682       13,113,564  

Shares redeemed

     (4,109,180 )      (110,000,585 )      (1,767,169 )      (48,688,688 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (2,037,646 )    $ (51,171,690 )      2,332,713     $ 61,209,588  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (5,677,250 )    $  (145,700,990 )      (5,247,669 )    $  (139,152,881 )
 

 

 

    

 

 

    

 

 

    

 

 

  

As of May 31, 2025, BlackRock Financial Management, Inc., an affiliate of the Fund, owned 11,882 Class K Shares of High Equity Income.

 

 

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Notes to Financial Statements (continued)

 

11. FOREIGN WITHHOLDINGS TAX CLAIMS

The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which each of the Funds is able to pass through to shareholders as a foreign tax credit in the current year, the Funds will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Funds.

Certain of the outstanding foreign tax reclaims are not deemed by the Funds to meet the recognition criteria under U.S. GAAP as of May 31, 2025 and have not been recorded in the applicable Fund’s net asset value. The recognition by the Funds of these amounts would have a positive impact on the applicable Fund’s performance. If a Fund receives a tax refund that has not been previously recorded, investors in the Fund at the time the claim is successful will benefit from any resulting increase in the Fund’s NAV. Investors who sold their shares prior to such time will not benefit from such NAV increase.

The Energy Opportunities is seeking a closing agreement with the IRS to address any prior years’ U.S. income tax liabilities attributable to Fund shareholders resulting from the recovery of foreign taxes. The closing agreement would result in the Fund paying a compliance fee to the IRS, on behalf of its shareholders, representing the estimated tax savings generated from foreign tax credits claimed by Fund shareholders on their tax returns in prior years. The Fund has accrued a liability for the estimated IRS compliance fee related to foreign withholding tax claims, which is disclosed in the Statements of Assets and Liabilities. The actual IRS compliance fee may differ from the estimate and that difference may be material.

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   33

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock Energy Opportunities Fund and BlackRock High Equity Income Fund and the Board of Trustees of BlackRock FundsSM:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock Energy Opportunities Fund and BlackRock High Equity Income Fund of BlackRock FundsSM (the “Funds”), including the schedules of investments, as of May 31, 2025, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of May 31, 2025, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

 

/s/ Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2025

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

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Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Qualified Dividend
Income		  

 

  

Energy Opportunities

   $   10,243,017  

High Equity Income

     28,540,781    

 

  

The following amount, or maximum amount allowable by law, is hereby designated as qualified business income for individuals for the fiscal year ended May 31, 2025:

 

 

 

    
     Fund Name    Qualified Business
Income		        
 

 

    
 

High Equity Income

    $ 568,317    
 

 

    

The Funds hereby designate the following amounts, or maximum amounts allowable by law, of distributions from direct federal obligation interest for the fiscal year ended May 31, 2025:

 

 

 

    
     Fund Name    Federal Obligation
Interest		        
 

 

    
 

Energy Opportunities

    $ 73,860    
 

High Equity Income

        1,161,485    
 

 

    

The law varies in each state as to whether and what percent of ordinary income dividends attributable to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.

The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended May 31, 2025 qualified for the dividends-received deduction for corporate shareholders:

 

 

  
Fund Name   Dividends-Received
Deduction		  

 

  

Energy Opportunities

       76.66 % 

High Equity Income

     11.96  

 

  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Interest Dividends  

 

  

Energy Opportunities

   $ 148,775  

High Equity Income

       2,275,439  

 

  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Interest-Related
Dividends		  

 

  

Energy Opportunities

   $ 148,881  

High Equity Income

       2,341,703  

 

  

 

 

I M P O R T A N T T A X I N F O R M A T I O N

   35

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements

 

The Board of Trustees (the “Board”, the members of which are referred to as “Board Members”) of BlackRock Funds (the “Trust”) met on April 22, 2025 (the “April Meeting”) and May 20-21, 2025 (the “May Meeting”) to consider the approval to continue the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of BlackRock Energy Opportunities Fund (“Energy Opportunities Fund”) and BlackRock High Equity Income Fund (“High Equity Income Fund” and, together with Energy Opportunities Fund, the “Funds” and each, a “Fund”), and BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Board also considered the approval to continue the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Manager and BlackRock International Limited with respect to Energy Opportunities Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock”. The Advisory Agreement and the Sub-Advisory Agreement are referred to herein as the “Agreements”.

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreements for each Fund on an annual basis. The Board Members who are not “interested persons” of the Trust, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board Members”). The Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to each Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Board had four quarterly meetings per year, as well as numerous ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also held the April Meeting to consider specific information regarding the renewal of the Agreements. In considering the renewal of the Agreements, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considered information that was relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to each Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ investment performance analyses, and the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Funds for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Funds; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of each Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and each Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as applicable; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Funds; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreements. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Funds’ operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting, and such responses were reviewed by the Board Members.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Funds; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to

 

 

 

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Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements (continued)

 

engage in open, candid discussions with the Board. The Board evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of each Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by each Fund’s portfolio management team discussing each Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the experience of each Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of certain trading, portfolio management, operations and/or information systems owned by BlackRock; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third-parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Funds, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. The Board also considered the operation of BlackRock’s business continuity plans.

The Board noted that the engagement of the Sub-Advisor with respect to Energy Opportunities Fund facilitates the provision of investment advice and trading by investment personnel out of non-U.S. jurisdictions. The Board considered that this arrangement provides additional flexibility to the portfolio management team, which may benefit Energy Opportunities Fund and its shareholders.

B. The Investment Performance of the Funds

The Board, including the Independent Board Members, reviewed and considered the performance history of each Fund throughout the year and at the April Meeting. The Board was provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the April meeting. In preparation for the April Meeting, the Board was also provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2024, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for the one-, three- and five-year periods reported, Energy Opportunities Fund ranked in the second, third and third quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable periods.

The Board noted that for the one-, three- and five-year periods reported, High Equity Income Fund ranked in the fourth, third and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds

The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual

 

 

 

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Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements (continued)

 

management fee rate gives effect to any management fee reimbursements or waivers. The Board considered that the fee and expense information in the Broadridge report for each Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of market volatility. The Board also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison is subject to Broadridge’s defined peer selection criteria and methodology. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2024 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized the limitations of calculating and comparing profitability at the individual fund level.

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time and resources, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that High Equity Income Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the third and second quartiles, respectively, relative to the Fund’s Expense Peers. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Board noted that Energy Opportunities Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio ranked in the fourth and first quartiles, respectively, relative to the Fund’s Expense Peers. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Board also noted that each Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board additionally noted that the breakpoints can, conversely, adjust the advisory fee rate upward as the size of a Fund decreases below certain contractually specified levels.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which any economies of scale might benefit the Funds in a variety of ways as the assets of the Funds increase. The Board considered multiple factors, including the advisory fee rate and breakpoints, unitary fee structure, fee waivers, and/or expense caps, as applicable. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Funds, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, distribution, securities lending and cash management services. With respect to securities lending, during the year the Board also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as securities lending agent. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the mutual fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Funds.

Conclusion

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of each Fund for a one-year term ending June 30, 2026, and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to Energy Opportunities Fund, for a one-year

 

 

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Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements (continued)

 

term ending June 30, 2026. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent legal counsel throughout the deliberative process.

 

 

D I S C L O S U R E O F I N V E S T M E N T A D V I S O R Y A G R E E M E N T A N D S U B - A D V I S O R Y A G R E E M E N T S

   39

Additional Information

 

Changes in and Disagreements with Accountants

Not applicable.

Proxy Results

Not applicable.

Remuneration Paid to Trustees, Officers, and Others

Compensation to the independent directors/trustees of the Trust is paid by the Trust, on behalf of the Funds.

General Information

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40  

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Additional Information (continued)

 

Fund and Service Providers

 

Investment Adviser and Administrator

  

Independent Registered Public Accounting Firm

BlackRock Advisors, LLC

  

Deloitte & Touche LLP

Wilmington, DE 19809

  

Boston, MA 02110

Sub-Adviser(a)

 

Distributor

BlackRock International Limited

  

BlackRock Investments, LLC

Edinburgh, EH3 8BL

  

New York, NY 10022

United Kingdom

  

Accounting Agent and Transfer Agent

  

Legal Counsel

BNY Mellon Investment Servicing (US) Inc.

  

Sidley Austin LLP

Wilmington, DE 19809

  

New York, NY 10019

Custodian

  

Address of the Trust

The Bank of New York Mellon

  

100 Bellevue Parkway

New York, NY 10286

  

Wilmington, DE 19809

(a) BlackRock Energy Opportunities Fund.

  

 

 

A D D I T I O N A L I N F O R M A T I O N

   41

Glossary of Terms Used in these Financial Statements

 

 

Currency Abbreviation

CAD

  

Canadian Dollar

CHF

  

Swiss Franc

EUR

  

Euro

GBP

  

British Pound

USD

  

United States Dollar

Portfolio Abbreviation

ADR

  

American Depositary Receipt

GDR

  

Global Depositary Receipt

NVS

  

Non-Voting Shares

REIT

  

Real Estate Investment Trust

 

 

42  

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THIS PAGE INTENTIONALLY LEFT BLANK.

 

Want to know more?

blackrock.com | 800-441-7762

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

 

 

LOGO

   LOGO

 

LOGO

  MAY 31, 2025

 

  

2025 Annual Financial Statements

and Additional Information

 

BlackRock Capital Appreciation Fund, Inc.

BlackRock FundsSM

 

·  

BlackRock Health Sciences Opportunities Portfolio

·  

BlackRock Mid-Cap Growth Equity Portfolio

·  

BlackRock Technology Opportunities Fund

 

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 

 

Table of Contents

 

      Page  

Schedules of Investments

      3  

Statements of Assets and Liabilities

      16  

Statements of Operations

      18  

Statements of Changes in Net Assets

      19  

Financial Highlights

      21  

Notes to Financial Statements

      44  

Report of Independent Registered Public Accounting Firm

      58  

Important Tax Information

      59  

Disclosure of Investment Advisory Agreements

      60  

Additional Information

      64  

Glossary of Terms Used in these Financial Statements

      66  

 

 

2    

Schedule of Investments

May 31, 2025

   

BlackRock Capital Appreciation Fund, Inc.

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

    
Aerospace & Defense — 2.0%            

TransDigm Group, Inc.

     48,422     $ 71,104,317  
   

 

 

  
Automobiles — 4.0%            

Ferrari NV

     120,689       57,781,066  

Tesla, Inc.(a)

     251,704       87,205,368  
   

 

 

  
      144,986,434  
Broadline Retail — 9.8%            

Amazon.com, Inc.(a)

     1,715,880       351,772,559  
   

 

 

  
Building Products — 1.6%            

Trane Technologies PLC

     136,298       58,644,940  
   

 

 

  
Capital Markets — 2.9%            

KKR & Co., Inc., Class A

     517,749       62,885,793  

S&P Global, Inc.

     82,903       42,517,633  
   

 

 

  
      105,403,426  
Chemicals — 0.8%            

Sherwin-Williams Co. (The)

     77,114       27,669,274  
   

 

 

  
Commercial Services & Supplies — 1.2%            

Copart, Inc.(a)

     857,694       44,154,087  
   

 

 

  
Entertainment — 5.9%            

Netflix, Inc.(a)

     115,571       139,520,778  

Spotify Technology SA(a)

     107,863       71,743,996  
   

 

 

  
      211,264,774  
Financial Services — 4.4%            

Visa, Inc., Class A

     435,135       158,906,951  
   

 

 

  
Ground Transportation — 0.0%            

Old Dominion Freight Line, Inc.

     10,662       1,707,733  
   

 

 

  
Health Care Equipment & Supplies — 3.4%            

Boston Scientific Corp.(a)

     450,820       47,453,313  

Intuitive Surgical, Inc.(a)

     132,421       73,141,415  
   

 

 

  
      120,594,728  
Hotels, Restaurants & Leisure — 0.9%            

Hilton Worldwide Holdings, Inc.

     125,692       31,226,921  
   

 

 

  
Interactive Media & Services — 9.8%            

Alphabet, Inc., Class A

     619,247       106,349,480  

Meta Platforms, Inc., Class A

     381,716       247,157,293  
   

 

 

  
      353,506,773  
IT Services — 0.4%            

Shopify, Inc., Class A(a)

     120,442       12,913,791  
   

 

 

  
Life Sciences Tools & Services — 1.2%            

Danaher Corp.

     233,104       44,266,450  
   

 

 

  
Media — 1.2%            

Charter Communications, Inc., Class A(a)

     104,807       41,531,870  
   

 

 

  
Pharmaceuticals — 3.0%            

Eli Lilly & Co.

     144,840       106,844,123  
   

 

 

  
Real Estate Management & Development — 0.2%  

CoStar Group, Inc.(a)

     101,324       7,453,393  
   

 

 

  
Semiconductors & Semiconductor Equipment — 19.9%  

ASML Holding NV, Registered Shares(b)

     38,780       28,571,941  

Broadcom, Inc.

     895,763       216,837,349  

NVIDIA Corp.

     3,147,841       425,367,754  

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

     228,042       44,085,080  
   

 

 

  
      714,862,124  
Security   Shares     Value  
Software — 18.9%            

AppLovin Corp., Class A(a)

     198,528     $ 78,021,504  

Cadence Design Systems, Inc.(a)

     333,405       95,710,573  

Fair Isaac Corp.(a)

     20,885       36,053,358  

Intuit, Inc.

     129,095       97,269,210  

Microsoft Corp.

     810,854       373,284,747  
   

 

 

  
      680,339,392  
Technology Hardware, Storage & Peripherals — 5.9%  

Apple Inc.

     1,055,881       212,073,699  
   

 

 

  
Total Common Stocks — 97.4%            

(Cost: $1,394,744,586)

       3,501,227,759  
   

 

 

  

Preferred Securities

    
Preferred Stocks — 2.5%            
Interactive Media & Services — 1.1%            

Bytedance Ltd., Series E-1, (Acquired 11/11/20, cost $19,426,516)(a)(c)(d)

     177,291       41,138,604  
   

 

 

  
Software — 1.4%            

Databricks, Inc.

    

Series D, (Acquired 03/27/25, cost $34,703,225)(a)(c)(d)

     375,170       37,573,275  

Series J, (Acquired 01/21/25, cost $10,208,948)(a)(c)(d)

     110,367       11,053,255  
   

 

 

  
      48,626,530  
   

 

 

  
Total Preferred Securities — 2.5%            

(Cost: $64,338,688)

       89,765,134  
   

 

 

  
Total Long-Term Investments — 99.9%            

(Cost: $1,459,083,274)

       3,590,992,893  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 0.7%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(e)(f)(g)

     19,424,505       19,432,275  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(e)(f)

     5,447,738       5,447,738  
   

 

 

  
Total Short-Term Securities — 0.7%            

(Cost: $24,880,013)

       24,880,013  
   

 

 

  
Total Investments — 100.6%            

(Cost: $1,483,963,287)

       3,615,872,906  
Liabilities in Excess of Other Assets — (0.6)%     (23,194,198)  
   

 

 

  
Net Assets — 100.0%         $3,592,678,708  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $89,765,134, representing 2.5% of its net assets as of period end, and an original cost of $64,338,689.

(e) 

Affiliate of the Fund.

(f) 

Annualized 7-day yield as of period end.

(g) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   3

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Capital Appreciation Fund, Inc.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

    
    Affiliated Issuer   Value at
05/31/24		     

Purchases

at Cost

    

Proceeds

from Sales

      Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
05/31/25		      Shares
Held at
05/31/25		      Income    

Capital

Gain
Distributions
from Underlying
Funds

      
 

 

    
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ —      $  19,429,607 (a)    $ —      $  2,668      $ —      $  19,432,275        19,424,505      $ 3,462 (b)    $ —    

 

 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     4,697,315        750,423 (a)      —        —        —        5,447,738        5,447,738        189,717       —    
           

 

 

     

 

 

     

 

 

        

 

 

    

 

 

    
            $ 2,668      $ —      $ 24,880,013         $  193,179     $ —    
           

 

 

     

 

 

     

 

 

        

 

 

    

 

 

    

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

     Level 1      Level 2      Level 3      Total  

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

   $ 3,501,227,759      $ —      $ —      $ 3,501,227,759  

Preferred Securities

     —        —        89,765,134        89,765,134  

Short-Term Securities

           

Money Market Funds

     24,880,013        —        —        24,880,013  
 

 

 

     

 

 

     

 

 

     

 

 

  
  $  3,526,107,772      $   —      $  89,765,134      $  3,615,872,906  
 

 

 

     

 

 

     

 

 

     

 

 

  

A reconciliation of Level 3 financial instruments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

     Preferred
Securities		  

Assets

  

Opening Balance, as of May 31, 2024

   $ 30,813,176  

Transfers into Level 3

     —  

Transfers out of Level 3

     —  

Accrued discounts/premiums

     —  

Net realized gain (loss)

     —  

Net change in unrealized appreciation (depreciation)(a)(b)

     14,039,785  

Purchases

     44,912,173  

Sales

     —  
 

 

 

  

Closing Balance, as of May 31, 2025

   $ 89,765,134  
 

 

 

  

Net change in unrealized appreciation (depreciation) on investments still held at May 31, 2025(b)

   $  14,039,785  
 

 

 

  

 

  (a) 

Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.

 
  (b) 

Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at May 31, 2025, is generally due to investments no longer held or categorized as Level 3 at period end.

 

 

 

 

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Schedule of Investments (continued)

May 31, 2025

   

 BlackRock Capital Appreciation Fund, Inc.

 

The following table summarizes the valuation approaches used and unobservable inputs utilized by the Valuation Committee to determine the value of certain of the Fund’s Level 3 financial instruments as of period end.

 

     Value      Valuation Approach     

Unobservable

Inputs

      Range of
Unobservable Inputs
Utilized(a)		      Weighted Average of
Unobservable Inputs
Based on Fair Value		  

Assets

              

Preferred Securities

   $ 89,765,134        Market        Revenue Multiple        1.50x - 17.00x        9.90x  

 

  (a)

A significant change in unobservable input could result in a correlated or inverse change in value.

 

See notes to financial statements.

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   5

Schedule of Investments

May 31, 2025

   

BlackRock Health Sciences Opportunities Portfolio

(Percentages shown are based on Net Assets)

 

Security        Shares     Value  

Common Stocks

          
Biotechnology — 24.3%                

4D Molecular Therapeutics, Inc.(a)

       154,258     $ 558,414  

AbbVie, Inc.

       2,072,351       385,685,245  

Alkermes PLC(a)

       169,810       5,197,884  

Allogene Therapeutics, Inc.(a)(b)

       1,413,527       1,653,827  

Alnylam Pharmaceuticals, Inc.(a)

       502,787       153,128,809  

Amgen, Inc.

       748,486       215,698,696  

Arcellx, Inc.(a)

       207,201       12,858,894  

Argenx SE, ADR(a)

       117,950       67,616,017  

Ascendis Pharma A/S, ADR(a)

       124,134       20,213,981  

Autolus Therapeutics PLC, ADR(a)(b)

       850,117       1,487,705  

Beam Therapeutics, Inc.(a)(b)

       187,715       2,971,528  

Biohaven Ltd.(a)

       230,982       3,420,843  

BioMarin Pharmaceutical, Inc.(a)

       281,157       16,326,787  

BioNTech SE, ADR(a)

       47,467       4,547,813  

Blueprint Medicines Corp.(a)

       204,909       20,767,527  

Bridgebio Pharma, Inc.(a)

       231,965       7,944,801  

CG oncology, Inc.(a)

       68,649       1,758,787  

Denali Therapeutics, Inc.(a)

       269,381       3,566,604  

Disc Medicine, Inc.(a)(b)

       96,722       4,514,983  

Dyne Therapeutics, Inc.(a)

       322,438       3,856,358  

Exact Sciences Corp.(a)

       620,545       34,924,273  

Exelixis, Inc.(a)(b)

       342,550       14,743,352  

Gilead Sciences, Inc.

       1,125,322       123,875,446  

Incyte Corp.(a)(b)

       160,906       10,468,544  

Insmed, Inc.(a)

       658,178       45,894,752  

Ionis Pharmaceuticals, Inc.(a)(b)

       155,518       5,211,408  

Kymera Therapeutics, Inc.(a)(b)

       60,530       1,794,109  

Legend Biotech Corp., ADR(a)

       140,057       4,054,650  

Merus NV(a)

       230,676       12,934,003  

Metsera, Inc.(a)(b)

       152,727       4,080,865  

Moderna, Inc.(a)

       407,880       10,833,293  

MoonLake Immunotherapeutics(a)(b)

       77,153       3,009,739  

Natera, Inc.(a)

       151,876       23,955,401  

Neurocrine Biosciences, Inc.(a)

       144,705       17,801,609  

Nuvalent, Inc., Class A(a)

       367,660       27,431,113  

Protagonist Therapeutics, Inc.(a)

       262,826       12,476,350  

Prothena Corp. PLC(a)

       436,720       2,004,545  

PTC Therapeutics, Inc.(a)

       274,700       13,328,444  

Regeneron Pharmaceuticals, Inc.

       144,734       70,960,186  

REGENXBIO, Inc.(a)

       247,495       2,190,331  

Rhythm Pharmaceuticals, Inc.(a)

       690,347       42,338,982  

Roivant Sciences Ltd.(a)(b)

       757,759       8,327,771  

Scholar Rock Holding Corp.(a)

       103,615       3,005,871  

Stoke Therapeutics, Inc.(a)(b)

       925,936       8,833,429  

Summit Therapeutics, Inc.(a)(b)

       227,720       4,147,920  

TScan Therapeutics, Inc.(a)

       650,525       930,251  

Vaxcyte, Inc.(a)

       102,708       3,336,983  

Vertex Pharmaceuticals, Inc.(a)

       225,865       99,843,623  

Viking Therapeutics, Inc.(a)(b)

       118,964       3,188,235  

Vir Biotechnology, Inc.(a)

       272,240       1,344,866  

Voyager Therapeutics, Inc.(a)

       425,922       1,167,026  

Xenon Pharmaceuticals, Inc.(a)

       330,873       9,545,686  

Zealand Pharma A/S(a)(b)

       92,335       6,418,318  
     

 

 

  
        1,568,176,877  
Financial Services — 0.2%                

Helix Acquisition Corp. II, Class A(a)

       850,715       9,204,736  
     

 

 

  
Health Care Equipment & Supplies — 29.1%        

Abbott Laboratories

       2,604,639       347,927,678  

Alcon AG(b)

       443,060       38,076,576  

Boston Scientific Corp.(a)

       4,073,041       428,728,296  
Security        Shares     Value  
Health Care Equipment & Supplies (continued)  

Cooper Cos., Inc. (The)(a)

           343,632     $ 23,463,193  

Dexcom, Inc.(a)

       351,585       30,165,993  

Edwards Lifesciences Corp.(a)

       2,418,472       189,172,880  

GE HealthCare Technologies, Inc.

       268,721       18,955,579  

Glaukos Corp.(a)

       101,118       9,534,416  

Hologic, Inc.(a)

       156,655       9,739,241  

IDEXX Laboratories, Inc.(a)(b)

       86,759       44,538,600  

Inspire Medical Systems, Inc.(a)(b)

       58,973       8,150,069  

Insulet Corp.(a)

       66,855       21,729,881  

Intuitive Surgical, Inc.(a)

       381,710       210,833,702  

Medtronic PLC

       1,992,642       165,349,433  

Novocure Ltd.(a)

       641,675       12,262,409  

Nyxoah SA(a)(b)

       392,838       3,005,211  

Orchestra BioMed Holdings, Inc.(a)(b)

       250,564       714,107  

Penumbra, Inc.(a)

       149,102       39,805,761  

STERIS PLC

       75,548       18,525,125  

Stryker Corp.

       672,262       257,234,332  
     

 

 

  
        1,877,912,482  
Health Care Providers & Services — 15.1%        

Cencora, Inc.

       333,871       97,236,590  

Centene Corp.(a)

       260,875       14,723,785  

Cigna Group (The)

       222,702       70,516,361  

CVS Health Corp.

       815,115       52,199,965  

Elevance Health, Inc.

       279,607       107,324,351  

Exo Imaging, Inc. (Acquired 06/24/21, cost $11,178,821)(a)(c)(d)

       19,083       6,967  

Guardant Health, Inc.(a)

       129,627       5,265,449  

HCA Healthcare, Inc.

       255,378       97,398,615  

Humana, Inc.

       146,579       34,171,962  

Labcorp Holdings, Inc.

       197,993       49,294,317  

McKesson Corp.

       147,956       106,455,822  

Quest Diagnostics, Inc.

       303,566       52,620,130  

UnitedHealth Group, Inc.

       934,338       282,085,986  
     

 

 

  
        969,300,300  
Health Care Technology — 0.0%            

Carbon Health Technologies, Inc. (Acquired 07/09/21, cost $18,064,000)(a)(c)(d)

       2,720,277       27,203  
     

 

 

  
Life Sciences Tools & Services — 6.2%            

Agilent Technologies, Inc.

       261,530       29,270,438  

Bio-Techne Corp.

       219,569       10,627,140  

Danaher Corp.

       554,987       105,392,031  

IQVIA Holdings, Inc.(a)

       88,638       12,438,570  

Mettler-Toledo International, Inc.(a)

       15,479       17,886,294  

Repligen Corp.(a)

       167,659       19,795,498  

Thermo Fisher Scientific, Inc.

       267,577       107,785,367  

Waters Corp.(a)

       197,840       69,093,642  

West Pharmaceutical Services, Inc.

       134,864       28,436,074  
     

 

 

  
        400,725,054  
Pharmaceuticals — 20.4%                

AstraZeneca PLC

       324,659       47,557,370  

Bristol-Myers Squibb Co.

       2,279,200       110,039,776  

Daiichi Sankyo Co. Ltd.

       781,700       20,804,088  

Edgewise Therapeutics, Inc.(a)

       286,215       4,087,150  

Eli Lilly & Co.

       778,943       574,602,883  

Galderma Group AG

       116,108       15,254,664  

Johnson & Johnson

       1,717,195       266,525,836  

Merck & Co., Inc.

       616,926       47,404,594  

Pfizer, Inc.

       3,436,345       80,719,744  

Structure Therapeutics, Inc., ADR(a)

       103,023       2,241,781  

Teva Pharmaceutical Industries Ltd., ADR(a)

       3,047,795       51,142,000  

UCB SA

       111,585       20,299,496  
 

 

 

6  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Health Sciences Opportunities Portfolio

(Percentages shown are based on Net Assets)

 

Security        Shares     Value  
Pharmaceuticals (continued)            

WaVe Life Sciences Ltd.(a)

       309,930     $ 1,862,679  

Zoetis, Inc., Class A

       422,297       71,211,943  
     

 

 

  
        1,313,754,004  
     

 

 

  

Total Common Stocks — 95.3%
(Cost: $3,805,476,058)

         6,139,100,656  
     

 

 

  
         

Par

(000)

         

Other Interests(a)(c)(d)(e)

      

Afferent Pharmaceuticals, Inc., Series C (Acquired 06/30/15, cost $0)

   USD     3,421       34  

Affinivax Inc. (Acquired 08/19/22, cost $0)

       123       1,186,480  
     

 

 

  

Total Other Interests — 0.0%
(Cost: $0)

         1,186,514  
     

 

 

  
          Shares         

Preferred Securities

      
Preferred Stocks — 0.7%                
Biotechnology — 0.5%                

Adarx Pharmaceuticals, Inc.,
Series C, (Acquired 08/02/23, cost $6,399,994)(a)(c)(d)

       769,230       8,738,453  

Cellarity, Inc.,
Series B, (Acquired 01/15/21, cost $5,149,998)(a)(c)(d)

       858,333       1,828,249  

Genesis Therapeutics, Inc.,
Series B, (Acquired 08/10/23, cost $4,207,998)(a)(c)(d)

       823,870       4,803,162  

Goldfinch Bio, Inc., Series B, (Acquired 06/26/20,cost $4,152,184)(a)(c)(d)

       3,518,800       985,264  

Kartos Therapeutics, Inc.

      

Series C, (Acquired 08/22/23, cost $6,974,988)(a)(c)(d)

       1,233,856       6,995,964  

Series D, (Acquired 02/19/25, cost $1,919,018)(a)(c)(d)

       339,469       1,924,789  

Laronde, Inc., Series B, (Acquired 07/28/21, cost $10,822,560)(a)(c)(d)

       386,520       8,835,847  
     

 

 

  
        34,111,728  
Health Care Equipment & Supplies — 0.0%        

Swift Health Systems, Inc.,
Series D, (Acquired 08/27/21, cost $5,270,016)(a)(c)(d)

       1,700       3,791  
     

 

 

  
Health Care Providers & Services — 0.1%        

Exo Imaging, Inc., (Acquired 07/24/24, cost $577,098)(a)(c)(d)

       890,877       659,784  

Quanta Dialysis Technologies Ltd., Series D, (Acquired 06/18/21, cost $9,727,321)(a)(c)(d)

       80,024,425       6,684,896  
     

 

 

  
        7,344,680  
Pharmaceuticals — 0.1%                

Insitro, Series C, (Acquired 03/10/21, cost $10,839,964)(a)(c)(d)

       592,636       4,995,921  
     

 

 

  

Total Preferred Securities — 0.7%
(Cost: $66,041,139)

         46,456,120  
     

 

 

  
Security        Shares     Value  

Rights

      
Biotechnology — 0.0%                

Korro Bio, Inc., CVR(a)(c)

       428,010     $ 4  

Mirati Therapeutics, Inc., CVR(a)(b)(c)

       228,510       169,098  
     

 

 

  
        169,102  
Health Care Equipment & Supplies — 0.0%        

ABIOMED INC, CVR(a)(c)

       243,643       538,451  
     

 

 

  

Total Rights — 0.0%
(Cost: $ —)

         707,553  
     

 

 

  

Warrants(a)

          
Health Care Providers & Services — 0.0%        

CareMax, Inc., (Issued 09/15/20/Exercisable 07/21/21, 1 Share for 1 Warrant, Expires 08/06/26, Strike Price USD 11.50)(c)

       88,432       186  
     

 

 

  
Pharmaceuticals — 0.0%                

Nuvation Bio, Inc., (Issued/Exercisable 08/17/20, 1 Share for 1 Warrant, Expires 07/07/27, Strike Price USD 11.50)

       77,354       20,112  
     

 

 

  

Total Warrants — 0.0%
(Cost: $306,235)

         20,298  
     

 

 

  

Total Long-Term Investments — 96.0%
(Cost: $3,871,823,432)

 

     6,187,471,141  
     

 

 

  

Short-Term Securities

      
Money Market Funds — 6.0%                

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(f)(g)(h)

       52,980,376       53,001,569  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(f)(g)

       332,559,809       332,559,809  
     

 

 

  

Total Short-Term Securities — 6.0%
(Cost: $385,558,827)

         385,561,378  
     

 

 

  

Total Investments — 102.0%
(Cost: $4,257,382,259)

         6,573,032,519  

Liabilities in Excess of Other Assets — (2.0)%

 

     (126,606,806 ) 
     

 

 

  

Net Assets — 100.0%

       $ 6,446,425,713  
     

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $47,676,804, representing 0.7% of its net assets as of period end, and an original cost of $95,283,960.

(e) 

Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

(f) 

Affiliate of the Fund.

(g) 

Annualized 7-day yield as of period end.

(h) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   7

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Health Sciences Opportunities Portfolio

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

 

    
    Affiliated Issuer   Value at
05/31/24		     

Purchases

at Cost

     Proceeds from
Sales		     Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
05/31/25		     

Shares

Held at
05/31/25

      Income    

Capital

Gain
Distributions
from Underlying
Funds

      
 

 

    

 

  

BlackRock Cash Funds: Institutional, SL Agency Shares

   $  77,919,089      $ —     $  (24,941,131 )(a)    $ 21,060      $ 2,551      $  53,001,569        52,980,376      $ 357,474 (b)    $ —      
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     90,612,409        241,947,400 (a)      —       —        —        332,559,809        332,559,809        7,841,598       —    
          

 

 

     

 

 

     

 

 

        

 

 

    

 

 

    
           $ 21,060      $ 2,551      $ 385,561,378         $  8,199,072     $ —    
          

 

 

     

 

 

     

 

 

        

 

 

    

 

 

    

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

         
     Level 1      Level 2      Level 3      Total  

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

           

Biotechnology

   $ 1,561,758,559      $ 6,418,318      $ —      $ 1,568,176,877  

Financial Services

     9,204,736        —        —        9,204,736  

Health Care Equipment & Supplies

     1,877,912,482        —        —        1,877,912,482  

Health Care Providers & Services

     969,293,333        —        6,967        969,300,300  

Health Care Technology

     —        —        27,203        27,203  

Life Sciences Tools & Services

     400,725,054        —        —        400,725,054  

Pharmaceuticals

     1,209,838,386        103,915,618        —        1,313,754,004  

Other Interests

     —        —        1,186,514        1,186,514  

Preferred Securities

     —        —        46,456,120        46,456,120  

Rights

     —        —        707,553        707,553  

Warrants

     20,112        —        186        20,298  

Short-Term Securities

           

Money Market Funds

     385,561,378        —        —        385,561,378  
 

 

 

     

 

 

     

 

 

     

 

 

  
  $  6,414,314,040      $  110,333,936      $  48,384,543      $  6,573,032,519  
 

 

 

     

 

 

     

 

 

     

 

 

  

See notes to financial statements.

 

 

8  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments

May 31, 2025

   

BlackRock Mid-Cap Growth Equity Portfolio

(Percentages shown are based on Net Assets)

 

Security        Shares     Value  

Common Stocks

          
Aerospace & Defense — 11.3%                

Axon Enterprise, Inc.(a)

       516,464     $   387,533,927  

HEICO Corp.

       954,229       285,925,177  

Howmet Aerospace, Inc.

       1,445,338       245,548,473  

Loar Holdings, Inc.(a)(b)

       689,182       59,993,293  
     

 

 

  
        979,000,870  
Automobiles — 2.0%                

Ferrari NV(b)

       368,901       176,615,043  
     

 

 

  
Biotechnology — 1.4%                

Natera, Inc.(a)

       770,327       121,503,678  
     

 

 

  
Capital Markets — 10.4%                

Ares Management Corp., Class A

       1,605,582       265,723,821  

Blue Owl Capital, Inc., Class A

       8,891,460       166,092,473  

Robinhood Markets, Inc., Class A(a)(b)

       1,443,965       95,518,284  

TPG, Inc., Class A

       3,372,922       162,338,736  

Tradeweb Markets, Inc., Class A

       1,445,953       208,867,911  
     

 

 

  
        898,541,225  
Commercial Services & Supplies — 3.2%                

Copart, Inc.(a)

       2,914,889       150,058,486  

Rollins, Inc.

       2,277,329       130,377,085  
     

 

 

  
        280,435,571  
Construction & Engineering — 2.2%                

Quanta Services, Inc.

       553,203       189,505,220  
     

 

 

  
Construction Materials — 0.5%                

Vulcan Materials Co.

       176,230       46,713,286  
     

 

 

  
Diversified Consumer Services — 2.3%                

Duolingo, Inc., Class A(a)

       377,185       195,989,098  
     

 

 

  
Electrical Equipment — 3.4%                

Vertiv Holdings Co., Class A

       2,764,560       298,378,961  
     

 

 

  
Electronic Equipment, Instruments & Components — 1.6%  

Coherent Corp.(a)

       1,102,401       83,374,587  

Teledyne Technologies, Inc.(a)

       115,188       57,462,686  
     

 

 

  
        140,837,273  
Entertainment — 5.0%                

Liberty Media Corp. - Liberty Formula One, Class C, NVS(a)

       1,971,146       190,274,723  

Live Nation Entertainment, Inc.(a)

       1,735,768       238,130,012  
     

 

 

  
        428,404,735  
Financial Services — 3.6%                

Adyen NV(a)(c)

       91,065       174,524,192  

Affirm Holdings, Inc., Class A(a)

       2,631,710       136,585,749  
     

 

 

  
        311,109,941  
Ground Transportation — 0.1%                

Saia, Inc.(a)(b)

       35,493       9,384,704  
     

 

 

  
Health Care Equipment & Supplies — 7.7%        

Alcon AG

       722,024       62,050,743  

Align Technology, Inc.(a)

       49,795       9,009,907  

Dexcom, Inc.(a)

       3,300,915       283,218,507  

IDEXX Laboratories, Inc.(a)

       229,609       117,872,076  

Masimo Corp.(a)(b)

       1,171,467       190,363,388  
     

 

 

  
        662,514,621  
Health Care Providers & Services — 1.6%        

Cencora, Inc.

       476,579       138,798,868  
     

 

 

  
Health Care Technology — 0.7%                

Doximity, Inc., Class A(a)

       1,092,564       56,911,659  
     

 

 

  
Security        Shares     Value  
Hotels, Restaurants & Leisure — 2.5%                

DraftKings, Inc., Class A(a)(b)

           890,308     $    31,944,251  

Flutter Entertainment PLC(a)

       202,121       51,075,977  

Planet Fitness, Inc., Class A(a)

       1,236,069       127,104,975  

Wingstop, Inc.(b)

       11,733       4,009,166  
     

 

 

  
        214,134,369  
Interactive Media & Services — 0.2%                

Reddit, Inc., Class A(a)(b)

       120,137       13,497,392  
     

 

 

  
IT Services — 3.0%                

Cloudflare, Inc., Class A(a)(b)

       1,549,068       256,974,890  
     

 

 

  
Life Sciences Tools & Services — 1.3%                

Repligen Corp.(a)(b)

       134,749       15,909,815  

Waters Corp.(a)(b)

       267,614       93,461,513  

West Pharmaceutical Services, Inc.

       14,905       3,142,719  
     

 

 

  
        112,514,047  
Media — 1.7%                

Charter Communications, Inc., Class A(a)(b)

       382,565       151,599,033  
     

 

 

  
Oil, Gas & Consumable Fuels — 1.5%                

Antero Resources Corp.(a)

       1,575,610       59,006,595  

Expand Energy Corp.

       580,234       67,382,574  
     

 

 

  
        126,389,169  
Real Estate Management & Development — 1.5%        

CoStar Group, Inc.(a)(b)

       1,026,192       75,486,684  

Landbridge Co. LLC, Class A(b)

       809,712       57,853,922  
     

 

 

  
        133,340,606  
Semiconductors & Semiconductor Equipment — 3.3%        

ASM International NV

       298,795       162,618,025  

Astera Labs, Inc.(a)

       1,005,599       91,227,941  

BE Semiconductor Industries NV

       24,419       2,950,918  

Entegris, Inc.

       333,884       22,951,186  

Lattice Semiconductor Corp.(a)

       96,667       4,344,215  

Onto Innovation, Inc.(a)

       12,518       1,150,905  
     

 

 

  
        285,243,190  
Software — 25.4%                

AppLovin Corp., Class A(a)

       1,366,294       536,953,542  

Bentley Systems, Inc., Class B

       2,377,683       113,486,810  

Cadence Design Systems, Inc.(a)

       700,019       200,954,454  

Confluent, Inc., Class A(a)

       1,733,082       39,912,879  

CyberArk Software Ltd.(a)

       243,100       93,053,818  

Fair Isaac Corp.(a)

       121,896       210,426,627  

Gitlab, Inc., Class A(a)(b)

       434,142       19,757,802  

Guidewire Software, Inc.(a)

       644,197       138,515,239  

Nutanix, Inc., Class A(a)

       1,647,216       126,324,995  

Palantir Technologies, Inc., Class A(a)

       3,837,456       505,699,952  

Roper Technologies, Inc.

       114,131       65,085,485  

Tyler Technologies, Inc.(a)(b)

       249,862       144,167,875  

Vertex, Inc., Class A(a)(b)

       62,009       2,453,696  
     

 

 

  
        2,196,793,174  
Specialty Retail — 2.5%                

Carvana Co., Class A(a)

       630,652       206,324,108  

Floor & Decor Holdings, Inc., Class A(a)

       103,077       7,389,590  
     

 

 

  
        213,713,698  
Textiles, Apparel & Luxury Goods — 0.6%        

Brunello Cucinelli SpA

       417,794       51,489,446  
     

 

 

  

Total Common Stocks — 100.5%
(Cost: $5,827,806,135)

         8,690,333,767  
     

 

 

  
 

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   9

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Mid-Cap Growth Equity Portfolio

(Percentages shown are based on Net Assets)

 

Security       

Par

(000)

     Value  

Other Interests(a)(d)(e)

      

GCI Liberty, Inc., Class A

   USD     1,529     $ 15  
     

 

 

  

Total Other Interests — 0.0%
(Cost: $0)

 

     15  
     

 

 

  

Total Long-Term Investments — 100.5%
(Cost: $5,827,806,135)

 

     8,690,333,782  
     

 

 

  
          Shares         

Short-Term Securities

      
Money Market Funds — 4.0%                

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(f)(g)(h)

       351,203,978       351,344,459  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(f)(g)

       186,976       186,976  
     

 

 

  

Total Short-Term Securities — 4.0%
(Cost: $351,503,136)

 

     351,531,435  
     

 

 

  

Total Investments — 104.5%
(Cost: $6,179,309,271)

 

     9,041,865,217  

Liabilities in Excess of Other Assets — (4.5)%

 

     (392,061,081 ) 
     

 

 

  

Net Assets — 100.0%

       $ 8,649,804,136  
     

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

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

(e) 

Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

(f) 

Affiliate of the Fund.

(g) 

Annualized 7-day yield as of period end.

(h) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

Affiliated Issuer   Value at
05/31/24		      Purchases
at Cost		      Proceeds from
Sales		     Net
Realized
Gain (Loss)		      Change in
Unrealized
Appreciation
(Depreciation)		      Value at
05/31/25		     

Shares

Held at

05/31/25

      Income    

Capital

Gain

Distributions

from Underlying

Funds

  

BlackRock Cash Funds: Institutional, SL Agency Shares

   $  462,938,124      $ —      $  (111,815,351 )(a)    $ 191,634      $ 30,052      $  351,344,459        351,203,978      $ 971,263 (b)    $ —  

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     750,097        —        (563,121 )(a)      —        —        186,976        186,976        1,049,993       —  
         

 

 

     

 

 

     

 

 

        

 

 

    

 

 

  
          $ 191,634      $ 30,052      $ 351,531,435         $  2,021,256     $ —  
         

 

 

     

 

 

     

 

 

        

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

 

 

10  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Mid-Cap Growth Equity Portfolio

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

     Level 1      Level 2      Level 3      Total  

Assets

           

Investments

           

Long-Term Investments

           

Common Stocks

           

Aerospace & Defense

   $ 979,000,870      $ —      $ —      $ 979,000,870  

Automobiles

     176,615,043        —        —        176,615,043  

Biotechnology

     121,503,678        —        —        121,503,678  

Capital Markets

     898,541,225        —        —        898,541,225  

Commercial Services & Supplies

     280,435,571        —        —        280,435,571  

Construction & Engineering

     189,505,220        —        —        189,505,220  

Construction Materials

     46,713,286        —        —        46,713,286  

Diversified Consumer Services

     195,989,098        —        —        195,989,098  

Electrical Equipment

     298,378,961        —        —        298,378,961  

Electronic Equipment, Instruments & Components

     140,837,273        —        —        140,837,273  

Entertainment

     428,404,735        —        —        428,404,735  

Financial Services

     136,585,749        174,524,192        —        311,109,941  

Ground Transportation

     9,384,704        —        —        9,384,704  

Health Care Equipment & Supplies

     662,514,621        —        —        662,514,621  

Health Care Providers & Services

     138,798,868        —        —        138,798,868  

Health Care Technology

     56,911,659        —        —        56,911,659  

Hotels, Restaurants & Leisure

     214,134,369        —        —        214,134,369  

Interactive Media & Services

     13,497,392        —        —        13,497,392  

IT Services

     256,974,890        —        —        256,974,890  

Life Sciences Tools & Services

     112,514,047        —        —        112,514,047  

Media

     151,599,033        —        —        151,599,033  

Oil, Gas & Consumable Fuels

     126,389,169        —        —        126,389,169  

Real Estate Management & Development

     133,340,606        —        —        133,340,606  

Semiconductors & Semiconductor Equipment

     119,674,247        165,568,943        —        285,243,190  

Software

     2,196,793,174        —        —        2,196,793,174  

Specialty Retail

     213,713,698        —        —        213,713,698  

Textiles, Apparel & Luxury Goods

     —        51,489,446        —        51,489,446  

Other Interests

     —        —        15        15  

Short-Term Securities

           

Money Market Funds

     351,531,435        —        —        351,531,435  
 

 

 

     

 

 

     

 

 

     

 

 

  
  $  8,650,282,621      $  391,582,581      $ 15      $  9,041,865,217  
 

 

 

     

 

 

     

 

 

     

 

 

  

See notes to financial statements.

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   11

Schedule of Investments

May 31, 2025

   

BlackRock Technology Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Common Stocks            
Automobiles — 0.6%            

Tesla, Inc.(a)

     98,818     $     34,236,484  
   

 

 

  
Broadline Retail — 6.2%            

Alibaba Group Holding Ltd.

     4,306,852       61,320,151  

Amazon.com, Inc.(a)

     956,017       195,993,045  

MercadoLibre, Inc.(a)

     46,415       118,975,105  
   

 

 

  
      376,288,301  
Capital Markets — 1.4%            

CME Group, Inc., Class A

     149,578       43,228,042  

Deutsche Boerse AG, Registered Shares

     130,565       42,061,367  
   

 

 

  
      85,289,409  
Communications Equipment — 1.0%            

Arista Networks, Inc.(a)

     715,397       61,981,996  
   

 

 

  
Consumer Finance — 0.2%            

Klarna Group PLC (Acquired 09/15/20, cost $11,017,172)(a)(b)(c)

     307,200       11,498,496  
   

 

 

  
Diversified Consumer Services — 0.0%            

Think & Learn Private Ltd. (Acquired 09/30/20, cost $3,427,642)(a)(b)(c)

     2,241       —  
   

 

 

  
Electronic Equipment, Instruments & Components — 0.6%  

Coherent Corp.(a)

     452,378       34,213,348  
   

 

 

  
Entertainment — 4.9%            

Netflix, Inc.(a)

     49,709       60,010,196  

Nintendo Co. Ltd.

     559,700       45,663,936  

Spotify Technology SA(a)(d)

     185,589       123,442,667  

Take-Two Interactive Software, Inc.(a)

     291,696       66,004,971  
   

 

 

  
      295,121,770  
Financial Services — 3.3%            

Adyen NV(a)(e)

     37,641       72,138,199  

Mastercard, Inc., Class A

     220,549       129,153,495  
   

 

 

  
      201,291,694  
Industrial Conglomerates — 1.3%            

Hitachi Ltd.

     2,828,900       78,814,086  
   

 

 

  
Interactive Media & Services — 5.6%            

Alphabet, Inc., Class A

     355,297       61,018,707  

Meta Platforms, Inc., Class A

     431,285       279,252,725  
   

 

 

  
      340,271,432  
IT Services — 4.6%            

Farmer’s Business Network, Inc.(a)(b)

     194,200       240,808  

International Business Machines Corp.

     173,639       44,982,920  

Shopify, Inc., Class A(a)

     460,460       49,370,521  

Snowflake, Inc., Class A(a)

     768,918       158,143,365  

Twilio, Inc., Class A(a)

     245,120       28,850,624  
   

 

 

  
      281,588,238  
Professional Services — 2.7%            

RELX PLC

     1,467,427       78,968,383  

Thomson Reuters Corp.

     436,666       86,757,279  
   

 

 

  
      165,725,662  
Semiconductors & Semiconductor Equipment — 26.4%  

ASM International NV

     88,936       48,403,075  

ASML Holding NV

     73,956       54,486,359  

Broadcom, Inc.

     1,680,805       406,872,466  

Disco Corp.

     134,200       30,062,287  

Intel Corp.

     1,484,640       29,024,712  

Lam Research Corp.

     850,173       68,685,477  

Microchip Technology, Inc.

     386,568       22,436,407  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Monolithic Power Systems, Inc.

     52,667     $     34,860,287  

NVIDIA Corp.

     5,845,944       789,962,413  

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

     592,428       114,528,181  
   

 

 

  
      1,599,321,664  
Software — 30.3%            

AppLovin Corp., Class A(a)

     223,496       87,833,928  

Atlassian Corp., Class A(a)

     208,912       43,376,399  

Autodesk, Inc.(a)

     160,675       47,579,081  

Cadence Design Systems, Inc.(a)

     504,700       144,884,229  

Constellation Software, Inc.

     22,901       83,032,666  

Crowdstrike Holdings, Inc., Class A(a)

     190,532       89,811,069  

CyberArk Software Ltd.(a)

     167,884       64,262,638  

Databricks, Inc. (Acquired 07/24/20, cost $5,122,891)(a)(b)(c)

     319,983       32,046,297  

Elastic NV(a)

     255,981       20,701,183  

Guidewire Software, Inc.(a)

     272,068       58,500,061  

Microsoft Corp.

     1,119,667       515,449,900  

Oracle Corp.

     1,061,226       175,664,740  

Palo Alto Networks, Inc.(a)

     212,465       40,882,515  

Rubrik, Inc., Class A(a)

     494,544       47,154,770  

Salesforce, Inc.

     185,835       49,315,034  

Samsara, Inc., Class A(a)

     941,327       43,809,359  

SAP SE

     392,732       118,809,351  

ServiceNow, Inc.(a)

     117,507       118,810,153  

Unqork, Inc. (Acquired 03/05/21, cost
$4,093,769)(a)(b)(c)

     149,520       771,523  

Xero Ltd.(a)

     436,358       51,834,312  
   

 

 

  
      1,834,529,208  
Specialty Retail — 0.0%            

AceVector Ltd. (Acquired 05/07/14, cost

    

$1,414,399)(a)(b)(c)

     304,000       105,685  
   

 

 

  
Technology Hardware, Storage & Peripherals — 6.8%  

Apple Inc.

     1,774,046       356,317,139  

Samsung Electronics Co. Ltd.

     670,369       27,202,032  

Xiaomi Corp., Class B(a)(e)

     4,102,400       26,407,196  
   

 

 

  
      409,926,367  
   

 

 

  
Total Common Stocks — 95.9%  

(Cost: $3,043,625,816)

       5,810,203,840  
   

 

 

  

Preferred Securities

    
Preferred Stocks — 1.7%  
Diversified Consumer Services — 0.0%  

Think & Learn Private Ltd., Series F, (Acquired 09/30/20, cost $6,867,746)(a)(b)(c)

     2,371       —  
   

 

 

  
Interactive Media & Services — 0.4%  

Bytedance Ltd., Series E-1, (Acquired 11/11/20,cost $10,748,384)(a)(b)(c)

     94,889       22,018,043  
   

 

 

  
Semiconductors & Semiconductor Equipment — 0.5%  

PsiQuantum Corp., Series C, (Acquired 09/09/19,cost $2,698,454)(a)(b)(c)

     581,814       19,624,586  

SambaNova Systems, Inc., Series C, (Acquired 02/20/20, cost $9,804,574)(a)(b)(c)

     184,153       8,695,705  
   

 

 

  
      28,320,291  
Software — 0.8%            

Databricks, Inc.

    

Series F, (Acquired 10/22/19, cost
$3,700,005)(a)(b)(c)

     258,450       25,883,767  

 

 

 

 

12  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Technology Opportunities Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Software (continued)            

Databricks, Inc.

    

Series G, (Acquired 02/01/21, cost
$12,500,003)(a)(b)(c)

     211,425     $ 21,174,214  

Unqork, Inc.

    

Series A, (Acquired 03/05/21, cost
$194,941)(a)(b)(c)

     7,120       39,018  

Series B, (Acquired 03/05/21, cost
$314,315)(a)(b)(c)

     11,480       70,487  

Series C, (Acquired 09/18/20, cost
$8,323,340)(a)(b)(c)

     304,000       2,441,120  

Series Seed, (Acquired 03/05/21, cost
$489,544)(a)(b)(c)

     17,880       93,512  

Series Seed A, (Acquired 03/05/21, cost
$180,704)(a)(b)(c)

     6,600       34,386  
   

 

 

  
      49,736,504  
   

 

 

  

Total Preferred Securities — 1.7%
(Cost: $55,822,010)

       100,074,838  
   

 

 

  

Warrants(a)(b)

    
Software — 0.0%            

Constellation Software, Inc., (Issued/Exercisable 08/22/23, 1 Share for 1 Warrant, Expires 03/31/40, Strike Price CAD 0.00)

     22,107       —  
   

 

 

  

Total Warrants — 0.0%
(Cost: $0)

       —  
   

 

 

  

Total Long-Term Investments — 97.6%
(Cost: $3,099,447,826)

       5,910,278,678  
   

 

 

  

 

Security   Shares      Value  

Short-Term Securities

     
Money Market Funds — 2.7%             

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(f)(g)(h)

     8,829,668      $ 8,833,200  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(f)(g)

     153,923,002        153,923,002  
    

 

 

  

Total Short-Term Securities — 2.7%
(Cost: $162,756,202)

        162,756,202  
    

 

 

  

Total Investments — 100.3%
(Cost: $3,262,204,028)

        6,073,034,880  
Liabilities in Excess of Other Assets — (0.3)%      (16,184,315)  
    

 

 

  

Net Assets — 100.0%

      $ 6,056,850,565  
    

 

 

  

 

(a) 

Non-income producing security.

 

(b) 

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

 

(c) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $144,496,839, representing 2.4% of its net assets as of period end, and an original cost of $80,897,883.

 

(d) 

All or a portion of this security is on loan.

 

(e) 

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

 

(f) 

Affiliate of the Fund.

 

(g) 

Annualized 7-day yield as of period end.

 

(h) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

 

  
Affiliated Issuer   Value at
05/31/24		    

Purchases

at Cost

     Proceeds
from Sales		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		    

Shares

Held at
05/31/25

     Income    

Capital

Gain

Distributions

from Underlying

Funds

  

 

  

BlackRock Cash Funds: Institutional, SL Agency Shares

   $  42,718,478     $ —     $  (33,873,582)(a)     $ (11,696)     $ —     $ 8,833,200       8,829,668     $ 137,669(b)     $ —  

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     25,083,311       128,839,691(a)       —       —       —       153,923,002       153,923,002       2,284,411       —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $ (11,696)     $ —     $  162,756,202       $  2,422,080     $ —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   13

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Technology Opportunities Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1             Level 2             Level 3            Total  

 

  

Assets

                                     

Investments

                   

Long-Term Investments

                   

Common Stocks

                   

Automobiles

   $ 34,236,484         $ —         $ —           $ 34,236,484  

Broadline Retail

     314,968,150           61,320,151           —          376,288,301  

Capital Markets

     43,228,042           42,061,367           —          85,289,409  

Communications Equipment

     61,981,996           —           —          61,981,996  

Consumer Finance

     —           —           11,498,496          11,498,496  

Diversified Consumer Services

     —           —           —          —  

Electronic Equipment, Instruments & Components

     34,213,348           —           —          34,213,348  

Entertainment

     249,457,834           45,663,936           —          295,121,770  

Financial Services

     129,153,495           72,138,199           —          201,291,694  

Industrial Conglomerates

     —           78,814,086           —          78,814,086  

Interactive Media & Services

     340,271,432           —           —          340,271,432  

IT Services

     281,347,430           —           240,808          281,588,238  

Professional Services

     86,757,279           78,968,383           —          165,725,662  

Semiconductors & Semiconductor Equipment

     1,466,369,943           132,951,721           —          1,599,321,664  

Software

     1,631,067,725           170,643,663           32,817,820          1,834,529,208  

Specialty Retail

     —           —           105,685          105,685  

Technology Hardware, Storage & Peripherals

     356,317,139           53,609,228           —          409,926,367  

Preferred Securities

     —           —           100,074,838          100,074,838  

Warrants

     —           —           —          —  

Short-Term Securities

                   

Money Market Funds

     162,756,202           —           —          162,756,202  
 

 

 

        

 

 

        

 

 

       

 

 

  
  $  5,192,126,499         $  736,170,734         $  144,737,647        $  6,073,034,880  
 

 

 

        

 

 

        

 

 

       

 

 

  

A reconciliation of Level 3 financial instruments is presented when the Fund had a significant amount of Level 3 investments at the beginning and/or end of the year in relation to net assets. The following table is a reconciliation of Level 3 investments for which significant unobservable inputs were used in determining fair value:

 

               
    

Common

Stocks

            

Preferred

Stocks

             Warrants             Total  

Assets

                 

Opening Balance, as of May 31, 2024

   $ 35,470,366              $ 83,769,762              $ — (c)             $ 119,240,128  

Transfers into Level 3

     —          —          —          —  

Transfers out of Level 3

     —          —          —          —  

Accrued discounts/premiums

     —          —          —          —  

Net realized gain (loss)

     —          (144,905 )         —          (144,905 ) 

Net change in unrealized appreciation (depreciation)(a)(b)

     9,192,443          18,797,336          —          27,989,779  

Purchases

     11,017,172          —          —          11,017,172  

Sales

     (11,017,172 )         (2,347,355 )         —          (13,364,527 ) 
 

 

 

       

 

 

       

 

 

       

 

 

  

Closing Balance, as of May 31, 2025

   $     44,662,809        $  100,074,838        $           — (c)       $    144,737,647  
 

 

 

       

 

 

       

 

 

       

 

 

  

Net change in unrealized appreciation (depreciation) on investments still held at May 31, 2025(b)

   $ 8,752,495        $ 20,188,304        $ —        $ 28,940,799  
 

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

Included in the related net change in unrealized appreciation (depreciation) in the Statements of Operations.

 
  (b) 

Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at May 31, 2025, is generally due to investments no longer held or categorized as Level 3 at period end.

 
  (c) 

Rounds to less than $1.

 

 

 

14  

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Schedule of Investments (continued)

May 31, 2025

   

BlackRock Technology Opportunities Fund

 

The following table summarizes the valuation approaches used and unobservable inputs utilized by the Valuation Committee to determine the value of certain of the Fund’s Level 3 financial instruments as of period end.

 

        Value        Valuation Approach       

 Unobservable

Inputs

  

 

     

 Range of
Unobservable Inputs
Utilized		  
 
(a) 		    

 Weighted Average of
Unobservable Inputs
Based on Fair Value		  
 
 		  

  

  

Assets

               

  

 

Common Stocks

   $ 44,662,809        Market        Revenue Multiple        1.35x - 17.00x       13.47x    
            Volatility        70%       —    
            Time to Exit        3.0 years       —    
 

Preferred Stocks

     100,074,838        Market        Revenue Multiple        1.50x - 17.00x       12.32x    
            Volatility        70%-90%       76%    
            Time to Exit        3.0 - 4.0 years       3.6 years    
            Market Adjustment Multiple        1.10x       —    
   

 

 

               
    $  144,737,647               
   

 

 

               

 

  (a)

A significant change in unobservable input would have resulted in a correlated (inverse) significant change to value.

See notes to financial statements.

 

 

S C H E D U L E S O F  I N V E S T M E N T S

   15

Statements of Assets and Liabilities

May 31, 2025

 

    BlackRock        BlackRock        BlackRock     
    Capital        Health        Mid-Cap        BlackRock  
    Appreciation        Sciences        Growth        Technology  
    Fund,        Opportunities        Equity        Opportunities  
      Inc.        Portfolio        Portfolio        Fund  

ASSETS

           

Investments, at value — unaffiliated(a)(b)

   $ 3,590,992,893      $ 6,187,471,141      $ 8,690,333,782      $ 5,910,278,678  

Investments, at value — affiliated(c)

     24,880,013        385,561,378        351,531,435        162,756,202  

Cash

     2,667        —        6,665        —  

Foreign currency, at value(d)

     —        —        276,120        6,963  

Receivables:

           

Investments sold

     1,267,571        32,653,621        8,954,188        —  

Securities lending income — affiliated

     1,683        47,284        73,993        5,364  

Capital shares sold

     776,135        4,239,469        4,328,615        4,669,572  

Dividends — unaffiliated

     1,341,569        7,996,151        2,795,275        2,981,928  

Dividends — affiliated

     21,818        1,194,252        50,846        344,891  

From the Manager

     82,134        —        144,013        27,680  

Prepaid expenses

     41,889        62,907        86,692        78,833  
 

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

     3,619,408,372        6,619,226,203        9,058,581,624        6,081,150,111  
 

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES

           

Collateral on securities loaned

     19,432,275        52,987,574        351,138,880        8,833,200  

Payables:

           

Investments purchased

     1,325,639        103,953,635        8,500,354        —  

Administration fees

     —        307,711        307,221        189,760  

Capital shares redeemed

     3,118,591        9,374,548        41,365,226        9,268,730  

Investment advisory fees

     1,757,232        3,739,049        4,627,848        3,720,363  

Directors’ and Officer’s fees

     4,892        10,477        18,280        7,117  

Other accrued expenses

     546,893        1,570,805        2,290,884        1,536,834  

Other affiliate fees

     2,532        55,242        18,968        16,168  

Professional fees

     58,175        44,938        34,318        22,575  

Service and distribution fees

     483,435        756,511        475,509        704,799  
 

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

     26,729,664        172,800,490        408,777,488        24,299,546  
 

 

 

     

 

 

     

 

 

     

 

 

  

Commitments and contingent liabilities

           

NET ASSETS

   $ 3,592,678,708      $ 6,446,425,713      $ 8,649,804,136      $ 6,056,850,565  
 

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS CONSIST OF:

           

Paid-in capital

   $ 1,197,031,840      $ 3,811,576,031      $ 5,649,167,424      $ 2,899,674,187  

Accumulated earnings

     2,395,646,868        2,634,849,682        3,000,636,712        3,157,176,378  
 

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS

   $  3,592,678,708      $  6,446,425,713      $  8,649,804,136      $  6,056,850,565  
 

 

 

     

 

 

     

 

 

     

 

 

  

(a) Investments, at cost — unaffiliated

   $ 1,459,083,274      $ 3,871,823,432      $ 5,827,806,135      $ 3,099,447,826  

(b) Securities loaned, at value

   $ 18,787,635      $ 49,693,858      $ 343,170,845      $ 9,045,904  

(c) Investments, at cost — affiliated

   $ 24,880,013      $ 385,558,827      $ 351,503,136      $ 162,756,202  

(d) Foreign currency, at cost

   $ —      $ —      $ 274,345      $ 7,683  

 

 

16  

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Statements of Assets and Liabilities (continued)

May 31, 2025

 

    

BlackRock
Capital
Appreciation
Fund,

Inc.

      BlackRock
Health
Sciences
Opportunities
Portfolio		     

BlackRock
Mid-Cap
Growth

Equity

Portfolio

      BlackRock
Technology
Opportunities
Fund		  

NET ASSET VALUE

           
Institutional                           

Net assets

   $ 838,015,098      $ 3,295,417,816      $ 3,641,576,653      $ 3,071,364,508  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     19,374,781        50,624,607        84,578,909        41,944,904  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 43.25      $ 65.10      $ 43.06      $ 73.22  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     300 million        Unlimited        Unlimited        Unlimited  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.001      $ 0.001      $ 0.001  
 

 

 

     

 

 

     

 

 

     

 

 

  
Service                           

Net assets

     N/A      $ 24,526,114      $ 46,070,883      $ 50,592,374  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     N/A        403,930        1,206,261        747,868  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

     N/A      $ 60.72      $ 38.19      $ 67.65  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     N/A        Unlimited        Unlimited        Unlimited  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

     N/A      $ 0.001      $ 0.001      $ 0.001  
 

 

 

     

 

 

     

 

 

     

 

 

  
Investor A                           

Net assets

   $ 2,132,548,852      $ 2,287,337,727      $ 1,492,673,050      $ 2,116,249,578  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     57,636,225        37,885,661        41,017,815        32,100,048  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 37.00      $ 60.37      $ 36.39      $ 65.93  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     300 million        Unlimited        Unlimited        Unlimited  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.001      $ 0.001      $ 0.001  
 

 

 

     

 

 

     

 

 

     

 

 

  
Investor C                           

Net assets

   $ 38,409,746      $ 192,391,253      $ 149,020,436      $ 288,544,550  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     2,178,164        3,993,443        5,594,717        5,634,147  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 17.63      $ 48.18      $ 26.64      $ 51.21  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     300 million        Unlimited        Unlimited        Unlimited  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.001      $ 0.001      $ 0.001  
 

 

 

     

 

 

     

 

 

     

 

 

  
Class K                           

Net assets

   $ 560,119,107      $ 439,081,500      $ 3,245,829,986      $ 479,903,611  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     12,767,340        6,731,138        74,873,518        6,530,061  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 43.87      $ 65.23      $ 43.35      $ 73.49  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     300 million        Unlimited        Unlimited        Unlimited  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.001      $ 0.001      $ 0.001  
 

 

 

     

 

 

     

 

 

     

 

 

  
Class R                           

Net assets

   $ 23,585,905      $ 207,671,303      $ 74,633,128      $ 50,195,944  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     961,720        3,572,532        2,117,890        763,948  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 24.52      $ 58.13      $ 35.24      $ 65.71  
 

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     500 million        Unlimited        Unlimited        Unlimited  
 

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.10      $ 0.001      $ 0.001      $ 0.001  
 

 

 

     

 

 

     

 

 

     

 

 

  

See notes to financial statements.

 

 

S T A T E M E N T S  O F A S S E T S  A N D L I A B I L I T I E S

   17

Statements of Operations

Year Ended May 31, 2025

 

    

BlackRock
Capital
Appreciation
Fund,

Inc.

    

BlackRock
Health

Sciences

Opportunities
Portfolio

    

BlackRock
Mid-Cap
Growth

Equity

Portfolio

     BlackRock
Technology
Opportunities
Fund		  

INVESTMENT INCOME

        

Dividends — unaffiliated

   $ 15,008,618 (a)    $ 88,924,112     $ 28,340,806     $ 25,274,394  

Dividends — affiliated

     189,717       7,841,598       1,049,993       2,284,411  

Securities lending income — affiliated — net

     3,462       357,474       971,263       137,669  

Other income

     10,484       —       —       —  

Foreign taxes withheld

     (249,894 )      (403,121 )      (468,798 )      (984,867 ) 

Foreign withholding tax claims

     416,745       —       —       —  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total investment income

     15,379,132       96,720,063       29,893,264       26,711,607  
 

 

 

    

 

 

    

 

 

    

 

 

  

EXPENSES

        

Investment advisory

     22,112,522       52,334,214       65,001,888       44,202,451  

Service and distribution — class specific

     5,916,405       10,699,175       6,087,902       8,542,204  

Transfer agent — class specific

     2,520,574       7,248,982       8,888,028       5,668,171  

Accounting services

     232,499       462,347       599,412       354,887  

Professional

     218,959       129,426       118,328       129,599  

Reorganization

     98,677       —       —       —  

Registration

     95,982       143,703       197,194       177,974  

Printing and postage

     53,782       63,495       87,756       57,431  

Custodian

     39,538       174,738       114,465       63,856  

Directors and Officer

     31,709       63,692       85,849       49,702  

Administration

     —       2,716,710       3,532,013       2,078,207  

Administration — class specific

     —       1,557,340       2,059,549       1,163,733  

Miscellaneous

     68,509       248,302       153,747       103,032  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses excluding interest expense

     31,389,156       75,842,124       86,926,131       62,591,247  

Interest expense

     14,219       697       278,898       21,175  
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses

     31,403,375       75,842,821       87,205,029       62,612,422  
 

 

 

    

 

 

    

 

 

    

 

 

  

Less:

        

Administration fees waived by the Manager — class specific

     —       —       (1,228,923 )      (646,033 ) 

Fees waived and/or reimbursed by the Manager

     (426,549 )      (126,907 )      (18,061 )      (36,173 ) 

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     (392,753 )      —       (1,158,865 )      (148,292 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     30,584,073       75,715,914       84,799,180       61,781,924  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (15,204,941 )      21,004,149       (54,905,916 )      (35,070,317 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

        

Net realized gain (loss) from:

        

Investments — unaffiliated

     443,895,649       746,901,300       1,463,754,146       1,049,647,702  

Investments — affiliated

     2,668       21,060       191,634       (11,696 ) 

Foreign currency transactions

     (7,953 )      29,792       97,168       352,983  
 

 

 

    

 

 

    

 

 

    

 

 

  
    443,890,364       746,952,152       1,464,042,948       1,049,988,989  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

        

Investments — unaffiliated

     69,781,274       (1,159,042,508 )      (444,317,716 )      (174,319,940 ) 

Investments — affiliated

     —       2,551       30,052       —  

Foreign currency translations

     (1,594 )      103,867       88,081       39,973  
 

 

 

    

 

 

    

 

 

    

 

 

  
    69,779,680       (1,158,936,090 )      (444,199,583 )      (174,279,967 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

     513,670,044       (411,983,938 )      1,019,843,365       875,709,022  
 

 

 

    

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $  498,465,103     $ (390,979,789 )    $ 964,937,449     $ 840,638,705  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Includes $3,851,625 related to a special distribution from TransDigm Group, Inc.

 

See notes to financial statements.

 

 

18  

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Statements of Changes in Net Assets

 

 

    BlackRock Capital Appreciation Fund, Inc.     BlackRock Health Sciences Opportunities
Portfolio		  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment income (loss)

   $ (15,204,941 )    $ (10,611,713 )    $ 21,004,149     $ 25,316,530  

Net realized gain

     443,890,364       341,112,234       746,952,152       395,305,992  

Net change in unrealized appreciation (depreciation)

     69,779,680       713,790,114       (1,158,936,090 )      615,065,988  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     498,465,103       1,044,290,635       (390,979,789 )      1,035,688,510  
 

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Institutional

     (88,121,130 )      (24,574,161 )      (326,473,190 )      (165,666,116 ) 

Service

     —       —       (2,429,838 )      (1,218,171 ) 

Investor A

     (271,930,786 )      (69,431,098 )      (229,221,310 )      (108,961,191 ) 

Investor C

     (9,645,989 )      (2,509,299 )      (27,918,920 )      (16,034,475 ) 

Class K

     (57,998,828 )      (22,193,494 )      (39,451,171 )      (17,980,192 ) 

Class R

     (4,429,049 )      (1,215,316 )      (20,274,657 )      (8,884,277 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (432,125,782 )      (119,923,368 )      (645,769,086 )      (318,744,422 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

        

Net increase (decrease) in net assets derived from capital share transactions

     41,389,125       (551,525,947 )      (830,958,717 )      (872,061,789 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

        

Total increase (decrease) in net assets

     107,728,446       372,841,320       (1,867,707,592 )      (155,117,701 ) 

Beginning of year

     3,484,950,262       3,112,108,942       8,314,133,305       8,469,251,006  
 

 

 

    

 

 

    

 

 

    

 

 

  

End of year

   $ 3,592,678,708     $ 3,484,950,262     $ 6,446,425,713     $ 8,314,133,305  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

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

 

See notes to financial statements.

 

 

S T A T E M E N T S O F C H A N G E S I N N E T A S S E T S

   19

Statements of Changes in Net Assets (continued)

 

    BlackRock Mid-Cap Growth Equity
Portfolio		     BlackRock Technology Opportunities Fund  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

        

OPERATIONS

        

Net investment loss

   $ (54,905,916 )    $ (47,778,831 )    $ (35,070,317 )    $ (27,099,028 ) 

Net realized gain

     1,464,042,948       1,006,857,842       1,049,988,989       280,429,599  

Net change in unrealized appreciation (depreciation)

     (444,199,583 )      1,133,709,179       (174,279,967 )      1,259,756,995  
 

 

 

    

 

 

    

 

 

    

 

 

  

Net increase in net assets resulting from operations

     964,937,449       2,092,788,190       840,638,705       1,513,087,566  
 

 

 

    

 

 

    

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

        

Institutional

     —       —       (119,062,757 )      —  

Service

     —       —       (2,282,496 )      —  

Investor A

     —       —       (91,250,925 )      —  

Investor C

     —       —       (16,449,865 )      —  

Class K

     —       —       (13,171,916 )      —  

Class R

     —       —       (2,124,025 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     —       —       (244,341,984 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

        

Net increase (decrease) in net assets derived from capital share transactions

     (3,982,272,835 )      (1,914,227,253 )      124,995,870       (566,590,067 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

NET ASSETS

        

Total increase (decrease) in net assets

     (3,017,335,386 )      178,560,937       721,292,591       946,497,499  

Beginning of year

     11,667,139,522       11,488,578,585       5,335,557,974       4,389,060,475  
 

 

 

    

 

 

    

 

 

    

 

 

  

End of year

   $ 8,649,804,136     $ 11,667,139,522     $ 6,056,850,565     $ 5,335,557,974  
 

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

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

 

See notes to financial statements.

 

 

20  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights

(For a share outstanding throughout each period)

 

 

    BlackRock Capital Appreciation Fund, Inc.  
 

 

 

  
    Institutional  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		      Year Ended
05/31/22		     Period from
10/01/20 to
05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 41.93     $ 31.69     $ 31.98      $ 43.32     $ 38.32     $ 30.52  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income (loss)(a)

     (0.11 )(b)      (0.06 )      0.00 (c)       (0.09 )      (0.06 )      (0.07 ) 

Net realized and unrealized gain (loss)

     6.18       11.51       1.82        (6.14 )      7.06       10.81  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     6.07       11.45       1.82        (6.23 )      7.00       10.74  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(d)

     (4.75 )      (1.21 )      (2.11 )       (5.11 )      (2.00 )      (2.94 ) 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 43.25     $ 41.93     $ 31.69      $ 31.98     $ 43.32     $ 38.32  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(e)

             

Based on net asset value

     15.03 %      37.03 %      6.81 %       (17.30 )%      18.72 %(f)      38.17 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(g)

             

Total expenses

     0.73 %      0.75 %      0.73 %       0.70 %      0.72 %(h)      0.75 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.70 %      0.74 %      0.73 %       0.70 %      0.72 %(h)      0.75 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (0.27 )%      (0.17 )%      0.01 %       (0.21 )%      (0.21 )%(h)      (0.22 )% 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of period (000)

   $ 838,015     $ 784,361     $ 678,965      $ 943,275     $ 1,072,833     $ 911,484  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     29 %      21 %      43 %       55 %      25 %      42 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Includes a one-time special distribution from TransDigm Group, Inc. Excluding such special distribution, the net investment income would have been $(0.16) per share and (0.38)% of average net assets.

(c) 

Amount is less than $0.005 per share.

(d) 

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

(e) 

Where applicable, assumes the reinvestment of distributions.

(f) 

Not annualized.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   21

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Capital Appreciation Fund, Inc. (continued)  
 

 

 

  
    Investor A  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 36.54     $ 27.77     $ 28.38     $ 39.00     $ 34.74     $ 27.99  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.19 )(b)      (0.13 )      (0.07 )      (0.18 )      (0.11 )      (0.14 ) 

Net realized and unrealized gain (loss)

     5.36       10.04       1.57       (5.39 )      6.37       9.83  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     5.17       9.91       1.50       (5.57 )      6.26       9.69  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(c)

     (4.71 )      (1.14 )      (2.11 )      (5.05 )      (2.00 )      (2.94 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 37.00     $ 36.54     $ 27.77     $ 28.38     $ 39.00     $ 34.74  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

            

Based on net asset value

     14.76 %      36.66 %      6.53 %      (17.51 )%      18.51 %(e)      37.84 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

            

Total expenses

     0.97 %      1.00 %      1.00 %      0.97 %      0.97 %(g)      1.01 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.95 %      0.99 %      1.00 %      0.97 %      0.97 %(g)      1.01 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.52 )%      (0.42 )%      (0.27 )%      (0.48 )%      (0.46 )%(g)      (0.48 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 2,132,549     $ 2,117,888     $ 1,723,973     $ 1,871,340     $ 2,551,211     $ 2,195,906  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     29 %      21 %      43 %      55 %      25 %      42 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Includes a one-time special distribution from TransDigm Group, Inc. Excluding such special distribution, the net investment income would have been $(0.23) per share and (0.62)% of average net assets.

(c) 

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

(d) 

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

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

See notes to financial statements.

 

 

22  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Capital Appreciation Fund, Inc. (continued)  
 

 

 

  
    Investor C  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 19.74     $ 15.52     $ 17.01     $ 25.27     $ 23.27     $ 19.81  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.24 )(b)      (0.22 )      (0.16 )      (0.29 )      (0.20 )      (0.25 ) 

Net realized and unrealized gain (loss)

     2.80       5.50       0.78       (3.05 )      4.20       6.65  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.56       5.28       0.62       (3.34 )      4.00       6.40  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(c)

     (4.67 )      (1.06 )      (2.11 )      (4.92 )      (2.00 )      (2.94 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 17.63     $ 19.74     $ 15.52     $ 17.01     $ 25.27     $ 23.27  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

            

Based on net asset value

     13.94 %      35.61 %      5.62 %      (18.18 )%      17.89 %(e)      36.73 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

            

Total expenses

     1.80 %      1.84 %      1.84 %      1.76 %      1.77 %(g)      1.79 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.74 %      1.83 %      1.84 %      1.76 %      1.77 %(g)      1.79 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (1.31 )%      (1.26 )%      (1.11 )%      (1.28 )%      (1.27 )%(g)      (1.26 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 38,410     $ 40,228     $ 39,581     $ 48,332     $ 72,075     $ 89,336  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     29 %      21 %      43 %      55 %      25 %      42 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Includes a one-time special distribution from TransDigm Group, Inc. Excluding such special distribution, the net investment income would have been $(0.25) per share and (1.41)% of average net assets.

(c) 

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

(d) 

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

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   23

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Capital Appreciation Fund, Inc. (continued)  
 

 

 

  
    Class K  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		      Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 42.46     $ 32.08     $ 32.32      $ 43.71     $ 38.63     $ 30.71  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income (loss)(a)

     (0.09 )(b)      (0.03 )      0.02        (0.06 )      (0.03 )      (0.04 ) 

Net realized and unrealized gain (loss)

     6.26       11.65       1.85        (6.20 )      7.11       10.90  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     6.17       11.62       1.87        (6.26 )      7.08       10.86  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(c)

     (4.76 )      (1.24 )      (2.11 )       (5.13 )      (2.00 )      (2.94 ) 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 43.87     $ 42.46     $ 32.08      $ 32.32     $ 43.71     $ 38.63  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(d)

             

Based on net asset value

     15.10 %      37.14 %      6.90 %       (17.22 )%      18.78 %(e)      38.33 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

             

Total expenses

     0.65 %      0.65 %      0.65 %       0.64 %      0.63 %(g)      0.64 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.63 %      0.65 %      0.65 %       0.63 %      0.63 %(g)      0.64 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (0.21 )%      (0.08 )%      0.08 %       (0.15 )%      (0.13 )%(g)      (0.11 )% 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of period (000)

   $ 560,119     $ 517,123     $ 645,860      $ 646,115     $ 845,106     $ 682,107  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     29 %      21 %      43 %       55 %      25 %      42 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Includes a one-time special distribution from TransDigm Group, Inc. Excluding such special distribution, the net investment income would have been $(0.13) per share and (0.31)% of average net assets.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

See notes to financial statements.

 

 

24  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Capital Appreciation Fund, Inc. (continued)  
 

 

 

  
    Class R  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 25.70     $ 19.86     $ 21.02     $ 30.12     $ 27.30     $ 22.65  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.21 )(b)      (0.17 )      (0.11 )      (0.23 )      (0.15 )      (0.17 ) 

Net realized and unrealized gain (loss)

     3.71       7.10       1.06       (3.88 )      4.97       7.76  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.50       6.93       0.95       (4.11 )      4.82       7.59  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(c)

     (4.68 )      (1.09 )      (2.11 )      (4.99 )      (2.00 )      (2.94 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 24.52     $ 25.70     $ 19.86     $ 21.02     $ 30.12     $ 27.30  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

            

Based on net asset value

     14.46 %      36.14 %      6.17 %      (17.82 )%      18.26 %(e)      37.45 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

            

Total expenses

     1.33 %      1.36 %      1.37 %      1.33 %      1.30 %(g)      1.28 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.26 %      1.35 %      1.36 %      1.33 %      1.30 %(g)      1.28 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.84 )%      (0.78 )%      (0.63 )%      (0.85 )%      (0.80 )%(g)      (0.75 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 23,586     $ 25,350     $ 23,731     $ 24,371     $ 36,933     $ 37,741  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     29 %      21 %      43 %      55 %      25 %      42 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Includes a one-time special distribution from TransDigm Group, Inc. Excluding such special distribution, the net investment income would have been $(0.23) per share and (0.95)% of average net assets.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   25

Financial Highlights

(For a share outstanding throughout each period)

 

 

    BlackRock Health Sciences Opportunities Portfolio  
 

 

 

  
    Institutional  
 

 

 

  
    Year Ended
05/31/25		           Year Ended
05/31/24		           Year Ended
05/31/23		           Year Ended
05/31/22		           Period from
10/01/20
to 05/31/21		           Year Ended
09/30/20		  
                       

Net asset value, beginning of period

   $ 74.83       $ 68.47       $ 72.10       $ 81.77       $ 75.37       $ 61.55  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

     0.29         0.32         0.34         0.24         0.13         0.19  

Net realized and unrealized gain (loss)

     (4.19 )        8.71         1.07         (2.75 )        9.66         16.26  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (3.90 )        9.03         1.41         (2.51 )        9.79         16.45  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                      

From net investment income

     (0.25 )        (0.33 )        (0.38 )        (0.16 )        (0.13 )        (0.32 ) 

From net realized gain

     (5.58 )        (2.34 )        (4.66 )        (7.00 )        (3.26 )        (2.31 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

     (5.83 )        (2.67 )        (5.04 )        (7.16 )        (3.39 )        (2.63 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of period

   $ 65.10       $ 74.83       $ 68.47       $ 72.10       $ 81.77       $ 75.37  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                      

Based on net asset value

     (5.77 )%        13.57 %        2.25 %        (3.55 )%(d)        13.37 %(e)        27.34 %(f) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(g)

                      

Total expenses

     0.84 %        0.84 %        0.84 %        0.85 %        0.84 %(h)        0.85 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.84 %        0.84 %        0.84 %        0.85 %        0.84 %(h)        0.85 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

     0.40 %        0.45 %        0.49 %        0.31 %        0.24 %(h)        0.28 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                      

Net assets, end of period (000)

   $  3,295,418       $  4,374,721       $  4,436,816       $  5,062,514       $  5,990,131       $  5,133,191  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

     43 %        27 %        29 %        51 %        19 %        28 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Not annualized.

(f)

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

26  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Health Sciences Opportunities Portfolio (continued)  
 

 

 

  
    Service  
 

 

 

  
    Year Ended
05/31/25		           Year Ended
05/31/24		           Year Ended
05/31/23		           Year Ended
05/31/22		           Period from
10/01/20
to 05/31/21		           Year Ended
09/30/20		  
                       

Net asset value, beginning of period

   $ 70.27       $ 64.44       $ 68.16       $ 77.63       $ 71.63       $ 58.66  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income (loss)(a)

     0.06         0.10         0.13         0.01         (0.03 )        (0.01 ) 

Net realized and unrealized gain (loss)

     (3.91 )        8.20         1.00         (2.61 )        9.18         15.48  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (3.85 )        8.30         1.13         (2.60 )        9.15         15.47  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                      

From net investment income

     (0.12 )        (0.13 )        (0.19 )        —         —         (0.19 ) 

From net realized gain

     (5.58 )        (2.34 )        (4.66 )        (6.87 )        (3.15 )        (2.31 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

     (5.70 )        (2.47 )        (4.85 )        (6.87 )        (3.15 )        (2.50 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of period

   $ 60.72       $ 70.27       $ 64.44       $ 68.16       $ 77.63       $ 71.63  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                      

Based on net asset value

     (6.08 )%        13.24 %        1.94 %        (3.83 )%(d)        13.15 %(e)        26.96 %(f) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(g)

                      

Total expenses

     1.15 %        1.14 %        1.14 %        1.14 %        1.14 %(h)        1.15 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     1.15 %        1.14 %        1.14 %        1.14 %        1.14 %(h)        1.15 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income (loss)

     0.09 %        0.15 %        0.19 %        0.02 %        (0.07 )%(h)        (0.02 )% 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                      

Net assets, end of period (000)

   $ 24,526       $ 31,141       $ 33,055       $ 36,625       $ 43,825       $ 40,252  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

     43 %        27 %        29 %        51 %        19 %        28 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Not annualized.

(f) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   27

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Health Sciences Opportunities Portfolio (continued)  
 

 

 

  
    Investor A  
 

 

 

  
    Year Ended
05/31/25		           Year Ended
05/31/24		           Year Ended
05/31/23		           Year Ended
05/31/22		           Period from
10/01/20
to 05/31/21		           Year Ended
09/30/20		  
                       

Net asset value, beginning of period

   $ 69.88       $ 64.11       $ 67.84       $ 77.31       $ 71.37       $ 58.45  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income (loss)(a)

     0.11         0.13         0.16         0.05         (0.01 )        0.01  

Net realized and unrealized gain (loss)

     (3.89 )        8.15         0.99         (2.59 )        9.15         15.42  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (3.78 )        8.28         1.15         (2.54 )        9.14         15.43  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                      

From net investment income

     (0.15 )        (0.17 )        (0.22 )        —         —         (0.20 ) 

From net realized gain

     (5.58 )        (2.34 )        (4.66 )        (6.93 )        (3.20 )        (2.31 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

     (5.73 )        (2.51 )        (4.88 )        (6.93 )        (3.20 )        (2.51 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of period

   $ 60.37       $ 69.88       $ 64.11       $ 67.84       $ 77.31       $ 71.37  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                      

Based on net asset value

     (6.03 )%        13.28 %        1.99 %        (3.78 )%(d)        13.18 %(e)        26.99 %(f) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(g)

                      

Total expenses

     1.09 %        1.09 %        1.09 %        1.09 %        1.10 %(h)        1.11 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     1.09 %        1.09 %        1.09 %        1.09 %        1.10 %(h)        1.11 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income (loss)

     0.16 %        0.20 %        0.24 %        0.07 %        (0.02 )%(h)        0.01 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                      

Net assets, end of period (000)

   $ 2,287,338       $ 2,851,925       $ 2,865,706       $ 3,151,912       $ 3,496,818       $ 3,135,882  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

     43 %        27 %        29 %        51 %        19 %        28 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Not annualized.

(f) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

28  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Health Sciences Opportunities Portfolio (continued)  
 

 

 

  
    Investor C  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 57.16     $ 53.11     $ 57.24     $ 66.15     $ 61.38     $ 50.74  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.34 )      (0.31 )      (0.27 )      (0.43 )      (0.33 )      (0.40 ) 

Net realized and unrealized gain (loss)

     (3.06 )      6.70       0.80       (2.17 )      7.85       13.34  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (3.40 )      6.39       0.53       (2.60 )      7.52       12.94  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     (5.58 )      (2.34 )      (4.66 )      (6.31 )      (2.75 )      (2.30 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 48.18     $ 57.16     $ 53.11     $ 57.24     $ 66.15     $ 61.38  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     (6.73 )%      12.42 %      1.22 %      (4.50 )%(d)      12.61 %(e)      26.09 %(f) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(g)

            

Total expenses

     1.85 %      1.86 %      1.85 %      1.84 %      1.84 %(h)      1.85 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.85 %      1.86 %      1.85 %      1.84 %      1.84 %(h)      1.85 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.61 )%      (0.57 )%      (0.51 )%      (0.68 )%      (0.77 )%(h)      (0.72 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 192,391     $ 311,994     $ 404,306     $ 542,880     $ 719,525     $ 773,522  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     43 %      27 %      29 %      51 %      19 %      28 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Not annualized.

(f) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   29

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Health Sciences Opportunities Portfolio (continued)  
 

 

 

  
    Class K  
 

 

 

  
    Year Ended
05/31/25		           Year Ended
05/31/24		           Year Ended
05/31/23		           Year Ended
05/31/22		           Period from
10/01/20
to 05/31/21		           Year Ended
09/30/20		  
                       

Net asset value, beginning of period

   $ 74.95       $ 68.58       $ 72.21       $ 81.91       $ 75.50       $ 61.63  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income(a)

     0.36         0.39         0.40         0.33         0.18         0.27  

Net realized and unrealized gain (loss)

     (4.21 )        8.72         1.08         (2.77 )        9.68         16.28  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (3.85 )        9.11         1.48         (2.44 )        9.86         16.55  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                      

From net investment income

     (0.29 )        (0.40 )        (0.45 )        (0.26 )        (0.19 )        (0.37 ) 

From net realized gain

     (5.58 )        (2.34 )        (4.66 )        (7.00 )        (3.26 )        (2.31 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

     (5.87 )        (2.74 )        (5.11 )        (7.26 )        (3.45 )        (2.68 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of period

   $ 65.23       $ 74.95       $ 68.58       $ 72.21       $ 81.91       $ 75.50  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                      

Based on net asset value

     (5.71 )%        13.68 %        2.34 %        (3.44 )%(d)        13.45 %(e)        27.47 %(f) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(g)

                      

Total expenses

     0.75 %        0.75 %        0.75 %        0.74 %        0.74 %(h)        0.75 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     0.75 %        0.75 %        0.75 %        0.74 %        0.74 %(h)        0.75 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment income

     0.50 %        0.54 %        0.59 %        0.42 %        0.34 %(h)        0.39 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                      

Net assets, end of period (000)

   $ 439,082       $ 496,504       $ 487,287       $ 436,984       $ 464,179       $ 344,822  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

     43 %        27 %        29 %        51 %        19 %        28 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Not annualized.

(f) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

30  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Health Sciences Opportunities Portfolio (continued)  
 

 

 

  
    Class R  
 

 

 

  
    Year Ended
05/31/25		           Year Ended
05/31/24		           Year Ended
05/31/23		           Year Ended
05/31/22		           Period from
10/01/20
to 05/31/21		           Year Ended
09/30/20		  
                       

Net asset value, beginning of period

   $ 67.59       $ 62.14       $ 65.94       $ 75.28       $ 69.54       $ 57.05  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment loss(a)

     (0.13 )        (0.11 )        (0.08 )        (0.21 )        (0.18 )        (0.20 ) 

Net realized and unrealized gain (loss)

     (3.74 )        7.90         0.96         (2.52 )        8.91         15.05  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net increase (decrease) from investment operations

     (3.87 )        7.79         0.88         (2.73 )        8.73         14.85  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Distributions(b)

                      

From net investment income

     (0.01 )        —         (0.02 )        —         —         (0.05 ) 

From net realized gain

     (5.58 )        (2.34 )        (4.66 )        (6.61 )        (2.99 )        (2.31 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total distributions

     (5.59 )        (2.34 )        (4.68 )        (6.61 )        (2.99 )        (2.36 ) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net asset value, end of period

   $ 58.13       $ 67.59       $ 62.14       $ 65.94       $ 75.28       $ 69.54  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total Return(c)

                      

Based on net asset value

     (6.36 )%        12.88 %        1.62 %        (4.12 )%(d)        12.91 %(e)        26.60 %(f) 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Ratios to Average Net Assets(g)

                      

Total expenses

     1.45 %        1.46 %        1.46 %        1.45 %        1.44 %(h)        1.45 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Total expenses after fees waived and/or reimbursed

     1.44 %        1.46 %        1.46 %        1.45 %        1.44 %(h)        1.45 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Net investment loss

     (0.20 )%        (0.17 )%        (0.13 )%        (0.29 )%        (0.37 )%(h)        (0.32 )% 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Supplemental Data

                      

Net assets, end of period (000)

   $ 207,671       $ 247,848       $ 242,080       $ 263,195       $ 289,676       $ 260,488  
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

Portfolio turnover rate

     43 %        27 %        29 %        51 %        19 %        28 % 
 

 

 

      

 

 

      

 

 

      

 

 

      

 

 

      

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a capital contribution from affiliate, which had no impact on the Fund’s total return.

(e) 

Not annualized.

(f) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(g) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(h) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   31

Financial Highlights

(For a share outstanding throughout each period)

 

 

    BlackRock Mid-Cap Growth Equity Portfolio  
 

 

 

  
    Institutional  
 

 

 

  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 39.18     $ 32.79     $ 32.83     $ 45.95     $ 36.56     $ 28.68  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.21 )      (0.14 )      (0.08 )      (0.23 )      (0.15 )      (0.14 ) 

Net realized and unrealized gain (loss)

     4.09       6.53       0.04       (10.52 )      9.54       8.14  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.88       6.39       (0.04 )      (10.75 )      9.39       8.00  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     —       —       —       (2.37 )      —       (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 43.06     $ 39.18     $ 32.79     $ 32.83     $ 45.95     $ 36.56  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     9.90 %      19.49 %      (0.12 )%      (24.87 )%      25.68 %(d)      27.98 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.83 %      0.85 %      0.84 %      0.81 %      0.80 %(f)      0.85 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.80 %      0.80 %      0.80 %      0.80 %      0.80 %(f)      0.80 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.51 )%      (0.38 )%      (0.25 )%      (0.52 )%      (0.52 )%(f)      (0.43 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 3,641,577     $ 5,194,320     $ 5,266,832     $ 7,095,644     $ 9,260,191     $ 6,003,280  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     87 %      48 %      46 %      28 %      22 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

32  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Mid-Cap Growth Equity Portfolio (continued)  
    Service  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 34.85     $ 29.23     $ 29.34     $ 41.34     $ 32.95     $ 25.92  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.28 )      (0.21 )      (0.14 )      (0.31 )      (0.20 )      (0.19 ) 

Net realized and unrealized gain (loss)

     3.62       5.83       0.03       (9.39 )      8.59       7.34  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.34       5.62       (0.11 )      (9.70 )      8.39       7.15  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     —       —       —       (2.30 )      —       (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 38.19     $ 34.85     $ 29.23     $ 29.34     $ 41.34     $ 32.95  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     9.58 %      19.23 %      (0.38 )%      (25.06 )%      25.46 %(d)      27.68 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.14 %      1.12 %      1.10 %      1.09 %      1.10 %(f)      1.11 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.05 %      1.05 %      1.05 %      1.05 %      1.05 %(f)      1.05 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.76 )%      (0.63 )%      (0.50 )%      (0.77 )%      (0.78 )%(f)      (0.67 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 46,071     $ 59,731     $ 62,693     $ 81,276     $ 104,997     $ 83,680  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     87 %      48 %      46 %      28 %      22 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   33

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Mid-Cap Growth Equity Portfolio (continued)  
    Investor A  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  

Net asset value, beginning of period

   $ 33.20     $ 27.85     $ 27.96     $ 39.50     $ 31.48     $ 24.78  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.27 )      (0.20 )      (0.14 )      (0.29 )      (0.19 )      (0.18 ) 

Net realized and unrealized gain (loss)

     3.46       5.55       0.03       (8.94 )      8.21       7.00  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.19       5.35       (0.11 )      (9.23 )      8.02       6.82  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     —       —       —       (2.31 )      —       (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 36.39     $ 33.20     $ 27.85     $ 27.96     $ 39.50     $ 31.48  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     9.61 %      19.21 %      (0.39 )%      (25.05 )%      25.48 %(d)      27.61 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.11 %      1.13 %      1.13 %      1.09 %      1.09 %(f)      1.14 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.05 %      1.05 %      1.05 %      1.05 %      1.05 %(f)      1.05 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.76 )%      (0.63 )%      (0.50 )%      (0.78 )%      (0.78 )%(f)      (0.67 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 1,492,673     $ 1,622,438     $ 1,637,289     $ 1,913,190     $ 2,577,151     $ 1,917,773  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     87 %      48 %      46 %      28 %      22 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

34  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Mid-Cap Growth Equity Portfolio (continued)  
    Investor C  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  

Net asset value, beginning of period

   $ 24.48     $ 20.69     $ 20.93     $ 30.22     $ 24.20     $ 19.21  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.39 )      (0.32 )      (0.25 )      (0.43 )      (0.29 )      (0.30 ) 

Net realized and unrealized gain (loss)

     2.55       4.11       0.01       (6.67 )      6.31       5.41  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.16       3.79       (0.24 )      (7.10 )      6.02       5.11  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     —       —       —       (2.19 )      —       (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 26.64     $ 24.48     $ 20.69     $ 20.93     $ 30.22     $ 24.20  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     8.82 %      18.32 %      (1.15 )%      (25.61 )%      24.88 %(d)      26.72 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.81 %      1.84 %      1.83 %      1.78 %      1.80 %(f)      1.84 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.80 %      1.80 %      1.80 %      1.78 %      1.79 %(f)      1.80 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (1.51 )%      (1.38 )%      (1.25 )%      (1.51 )%      (1.52 )%(f)      (1.42 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 149,020     $ 184,966     $ 194,849     $ 243,284     $ 357,360     $ 280,143  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     87 %      48 %      46 %      28 %      22 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   35

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Mid-Cap Growth Equity Portfolio (continued)  
    Class K  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 39.42     $ 32.95     $ 32.96     $ 46.10     $ 36.66     $ 28.74  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.17 )      (0.11 )      (0.05 )      (0.17 )      (0.12 )      (0.12 ) 

Net realized and unrealized gain (loss)

     4.10       6.58       0.04       (10.58 )      9.56       8.16  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.93       6.47       (0.01 )      (10.75 )      9.44       8.04  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     —       —       —       (2.39 )      —       (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 43.35     $ 39.42     $ 32.95     $ 32.96     $ 46.10     $ 36.66  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     9.97 %      19.64 %      (0.03 )%      (24.79 )%      25.75 %(d)      28.06 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.71 %      0.71 %      0.71 %      0.70 %      0.70 %(f)      0.73 %(g) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.71 %      0.71 %      0.71 %      0.70 %      0.70 %(f)      0.73 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.42 )%      (0.29 )%      (0.15 )%      (0.40 )%      (0.42 )%(f)      (0.36 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 3,245,830     $ 4,520,357     $ 4,233,488     $ 4,376,642     $ 3,674,402     $ 2,011,727  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     87 %      48 %      46 %      28 %      22 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

See notes to financial statements.

 

 

36  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Mid-Cap Growth Equity Portfolio (continued)  
    Class R  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 32.23     $ 27.11     $ 27.28     $ 38.65     $ 30.85     $ 24.34  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.34 )      (0.26 )      (0.20 )      (0.37 )      (0.25 )      (0.24 ) 

Net realized and unrealized gain (loss)

     3.35       5.38       0.03       (8.73 )      8.05       6.87  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.01       5.12       (0.17 )      (9.10 )      7.80       6.63  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     —       —       —       (2.27 )      —       (0.12 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 35.24     $ 32.23     $ 27.11     $ 27.28     $ 38.65     $ 30.85  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     9.34 %      18.89 %      (0.62 )%      (25.24 )%      25.28 %(d)      27.33 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.42 %      1.41 %      1.42 %      1.40 %      1.39 %(f)      1.45 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.30 %      1.30 %      1.30 %      1.30 %      1.30 %(f)      1.30 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (1.01 )%      (0.88 )%      (0.75 )%      (1.02 )%      (1.03 )%(f)      (0.92 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 74,633     $ 85,328     $ 93,427     $ 93,527     $ 98,300     $ 59,411  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     87 %      48 %      46 %      28 %      22 %      35 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   37

Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Technology Opportunities Fund  
    Institutional  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 65.44     $ 47.74     $ 45.31     $ 64.81     $ 55.33     $ 32.63  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.33 )      (0.23 )      (0.13 )      (0.30 )      (0.28 )      (0.22 ) 

Net realized and unrealized gain (loss)

     10.97       17.93       2.56       (14.51 )      12.67       23.43  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     10.64       17.70       2.43       (14.81 )      12.39       23.21  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     (2.86 )      —       —       (4.69 )      (2.91 )      (0.51 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 73.22     $ 65.44     $ 47.74     $ 45.31     $ 64.81     $ 55.33  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     16.22 %      37.08 %      5.36 %      (25.09 )%      22.68 %(d)      72.07 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.93 %      0.97 %      0.98 %      0.94 %      0.92 %(f)      0.98 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.92 %      0.92 %      0.92 %      0.92 %      0.92 %(f)      0.92 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.46 )%      (0.41 )%      (0.30 )%      (0.48 )%      (0.66 )%(f)      (0.50 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 3,071,365     $ 2,751,350     $ 2,316,550     $ 2,943,616     $ 4,958,187     $ 3,641,519  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     52 %      21 %      39 %      29 %      25 %      27 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

38  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Technology Opportunities Fund (continued)  
    Service  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 60.78     $ 44.45     $ 42.30     $ 60.86     $ 52.20     $ 30.88  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.47 )      (0.34 )      (0.21 )      (0.42 )      (0.37 )      (0.30 ) 

Net realized and unrealized gain (loss)

     10.20       16.67       2.36       (13.52 )      11.94       22.13  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     9.73       16.33       2.15       (13.94 )      11.57       21.83  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     (2.86 )      —       —       (4.62 )      (2.91 )      (0.51 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 67.65     $ 60.78     $ 44.45     $ 42.30     $ 60.86     $ 52.20  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     15.96 %      36.74 %      5.08 %      (25.28 )%      22.46 %(d)      71.68 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.21 %      1.21 %      1.20 %      1.19 %      1.17 %(f)      1.19 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.17 %      1.17 %      1.17 %      1.17 %      1.16 %(f)      1.17 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.71 )%      (0.67 )%      (0.55 )%      (0.73 )%      (0.90 )%(f)      (0.74 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 50,592     $ 46,993     $ 47,332     $ 55,439     $ 83,886     $ 50,710  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     52 %      21 %      39 %      29 %      25 %      27 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   39

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Technology Opportunities Fund (continued)  
    Investor A  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 59.29     $ 43.37     $ 41.27     $ 59.47     $ 51.06     $ 30.22  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.46 )      (0.33 )      (0.21 )      (0.41 )      (0.36 )      (0.29 ) 

Net realized and unrealized gain (loss)

     9.96       16.25       2.31       (13.19 )      11.68       21.64  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     9.50       15.92       2.10       (13.60 )      11.32       21.35  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     (2.86 )      —       —       (4.60 )      (2.91 )      (0.51 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 65.93     $ 59.29     $ 43.37     $ 41.27     $ 59.47     $ 51.06  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     15.96 %      36.71 %      5.09 %      (25.28 )%      22.48 %(d)      71.65 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.19 %      1.21 %      1.23 %      1.21 %      1.19 %(f)      1.25 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.17 %      1.17 %      1.17 %      1.17 %      1.17 %(f)      1.17 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.71 )%      (0.66 )%      (0.54 )%      (0.73 )%      (0.91 )%(f)      (0.74 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $  2,116,250     $ 1,959,752     $  1,572,976     $  1,695,648     $  2,524,052     $  1,773,399  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     52 %      21 %      39 %      29 %      25 %      27 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Technology Opportunities Fund (continued)  
    Investor C  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 46.92     $ 34.58     $ 33.17     $ 48.77     $ 42.52     $ 25.43  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.73 )      (0.56 )      (0.40 )      (0.68 )      (0.54 )      (0.48 ) 

Net realized and unrealized gain (loss)

     7.88       12.90       1.81       (10.52 )      9.70       18.08  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     7.15       12.34       1.41       (11.20 )      9.16       17.60  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     (2.86 )      —       —       (4.40 )      (2.91 )      (0.51 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 51.21     $ 46.92     $ 34.58     $ 33.17     $ 48.77     $ 42.52  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     15.15 %      35.68 %      4.25 %      (25.81 )%      21.89 %(d)      70.39 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.92 %      1.97 %      1.98 %      1.92 %      1.91 %(f)      1.98 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.91 %      1.92 %      1.92 %      1.91 %      1.90 %(f)      1.92 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (1.46 )%      (1.42 )%      (1.30 )%      (1.47 )%      (1.65 )%(f)      (1.49 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 288,545     $ 292,034     $ 259,247     $ 291,802     $ 427,435     $ 317,792  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     52 %      21 %      39 %      29 %      25 %      27 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   41

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Technology Opportunities Fund (continued)  
    Class K  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Period from
12/10/19(a)
to 09/30/20		  
             

Net asset value, beginning of period

   $ 65.61     $ 47.83     $ 45.37     $ 64.89     $ 55.36     $ 34.59  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(b)

     (0.27 )      (0.19 )      (0.10 )      (0.24 )      (0.24 )      (0.16 ) 

Net realized and unrealized gain (loss)

     11.01       17.97       2.56       (14.55 )      12.68       20.93  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     10.74       17.78       2.46       (14.79 )      12.44       20.77  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(c)

     (2.86 )      —       —       (4.73 )      (2.91 )      —  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 73.49     $ 65.61     $ 47.83     $ 45.37     $ 64.89     $ 55.36  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

            

Based on net asset value

     16.33 %      37.17 %      5.42 %      (25.05 )%      22.77 %(e)      60.05 %(e) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

            

Total expenses

     0.84 %      0.85 %      0.87 %      0.84 %      0.83 %(g)      0.87 %(g) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.83 %      0.85 %      0.87 %      0.83 %      0.82 %(g)      0.86 %(g) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.38 )%      (0.34 )%      (0.24 )%      (0.38 )%      (0.56 )%(g)      (0.46 )%(g) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 479,904     $ 241,109     $ 157,185     $ 135,879     $ 122,568     $ 75,426  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     52 %      21 %      39 %      29 %      25 %      27 %(h) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Portfolio turnover is representative of the Fund for the entire year.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Technology Opportunities Fund (continued)  
    Class R  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Period from
10/01/20
to 05/31/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 59.25     $ 43.44     $ 41.44     $ 59.75     $ 51.37     $ 30.48  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.61 )      (0.46 )      (0.30 )      (0.56 )      (0.46 )      (0.38 ) 

Net realized and unrealized gain (loss)

     9.93       16.27       2.30       (13.25 )      11.75       21.78  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     9.32       15.81       2.00       (13.81 )      11.29       21.40  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions from net realized gain(b)

     (2.86 )      —       —       (4.50 )      (2.91 )      (0.51 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 65.71     $ 59.25     $ 43.44     $ 41.44     $ 59.75     $ 51.37  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     15.68 %      36.39 %      4.83 %      (25.47 )%      22.28 %(d)      71.20 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     1.53 %      1.55 %      1.58 %      1.54 %      1.50 %(f)      1.57 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.42 %      1.42 %      1.42 %      1.42 %      1.42 %(f)      1.42 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.96 )%      (0.91 )%      (0.79 )%      (0.98 )%      (1.17 )%(f)      (0.99 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $ 50,196     $ 44,320     $ 35,771     $ 35,001     $ 50,186     $ 38,907  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     52 %      21 %      39 %      29 %      25 %      27 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   43

Notes to Financial Statements

 

1. ORGANIZATION

BlackRock Capital Appreciation Fund, Inc. (the “Corporation”) and BlackRock FundsSM (the “Trust”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies. The Corporation is organized as a Maryland corporation. The Trust is organized as a Massachusetts business trust. BlackRock Capital Appreciation Fund, Inc. is the only series of the Corporation. BlackRock Health Sciences Opportunities Portfolio, BlackRock Mid-Cap Growth Equity Portfolio and BlackRock Technology Opportunities Fund are series of the Trust. The following are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

     
Fund Name   Herein Referred To As    Diversification Classification

BlackRock Capital Appreciation Fund, Inc.

   Capital Appreciation    Diversified

BlackRock Health Sciences Opportunities Portfolio

   Health Sciences Opportunities    Diversified

BlackRock Mid-Cap Growth Equity Portfolio

   Mid-Cap Growth Equity    Diversified

BlackRock Technology Opportunities Fund

   Technology Opportunities    Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold only to certain eligible investors. Service, Investor A, Investor C and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C and Class R Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Class R Shares are sold only to certain employer-sponsored retirement plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

 

       
Share Class   Initial Sales Charge      CDSC     Conversion Privilege  

Institutional, Service, Class K and Class R Shares

     No        No       None  

Investor A Shares

     Yes        No (a)      None  

Investor C Shares

     No        Yes (b)      To Investor A Shares after approximately 8 years  

 

  (a)

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 
  (b)

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

 

The Board of Directors of the Corporation and the Board of Trustees of the Trust are collectively referred to throughout this report as the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Directors”.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Funds are informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a

 

 

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Notes to Financial Statements (continued)

 

 

reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of May 31, 2025, if any, are disclosed in the Statements of Assets and Liabilities.

Consistent with U.S. GAAP accrual requirements for uncertain tax positions, each Fund recognizes tax reclaims when the Fund determines that it is more likely than not that each Fund will sustain its position that it is due the reclaim.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Cash: The Funds may maintain cash at their custodian which, at times may exceed United States federally insured limits. The Funds may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

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

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

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

The Funds have an arrangement with their custodian whereby credits are earned on uninvested cash balances. For financial reporting purposes, custodian credits, if any, are included in interest income in the Statements of Operations.

Segment Reporting: The Funds adopted Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures (“ASU 2023-07”) during the period. The Funds’ adoption of the new standard impacted financial statement disclosures only and did not affect each Fund’s financial position or results of operations.

The Chief Financial Officer acts as the Funds’ Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance and allocating resources with respect to each Fund. The CODM has concluded that each Fund operates as a single operating segment since each Fund has a single investment strategy as disclosed in their prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Funds’ financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of each Fund has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s net asset value (“NAV”).

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   45

Notes to Financial Statements (continued)

 

 

techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the measurement date.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs:

(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the underlying investment or comparable issuers

(ii) recapitalizations and other transactions across the capital structure

(iii) market or relevant indices multiples of comparable issuers

(iv) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks

(v) quoted prices for similar investments or assets in active markets

(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates

(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics

(viii) relevant market news and other public sources.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Certain information made available by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. 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 that each Fund has the ability to access for identical assets or liabilities;

 

  •  

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

 

  •  

Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

Warrants: Warrants entitle a fund to purchase a specified number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date of the warrants, if any. If the price of the underlying stock does not rise above the strike price before the

 

 

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Notes to Financial Statements (continued)

 

 

warrant expires, the warrant generally expires without any value and a fund will lose any amount it paid for the warrant. Thus, investments in warrants may involve more risk than investments in common stock. Warrants may trade in the same markets as their underlying stock; however, the price of the warrant does not necessarily move with the price of the underlying stock.

Commitments: Commitments are agreements to acquire an investment at a future date (subject to conditions) in connection with a potential public or non-public offering. Such agreements may obligate a fund to make future cash payments. As of May 31, 2025, Health Sciences Opportunities had an outstanding commitment of $2,243,000. This commitment is not included in the net assets of Health Sciences Opportunities as of May 31, 2025.

Securities Lending: The Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Funds collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedules of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Funds’ Schedules of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statements of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Funds’ securities on loan by counterparty which are subject to offset under an MSLA:

 

         
 Fund Name/Counterparty  

Securities

Loaned at Value

     

Cash

Collateral Received(a)

    

Non-Cash

Collateral Received,

at Fair Value(a)

      Net
Amount		  

 Capital Appreciation

          

 Morgan Stanley

   $ 18,787,635      $ (18,787,635 )    $ —      $ —  
 

 

 

     

 

 

    

 

 

     

 

 

  

 Health Sciences Opportunities

          

 BNP Paribas SA

   $ 198,900      $ (198,900 )    $ —      $ —  

 BofA Securities, Inc.

     603,585        (603,585 )      —        —  

 Citigroup Global Markets, Inc.

     10,987,240        (10,987,240 )      —        —  

 Goldman Sachs & Co. LLC

     3,631,943        (3,631,943 )      —        —  

 J.P. Morgan Securities LLC

     9,663,232        (9,663,232 )      —        —   

 Jefferies LLC

     4,568,881        (4,568,881 )      —        —  

 Morgan Stanley

     19,443,086        (19,443,086 )      —        —  

 State Street Bank & Trust Co.

     596,991        (596,991 )      —        —  
 

 

 

     

 

 

    

 

 

     

 

 

  
  $ 49,693,858      $ (49,693,858 )    $ —      $ —  
 

 

 

     

 

 

    

 

 

     

 

 

  

 Mid-Cap Growth Equity

          

 BofA Securities, Inc.

   $ 1,981,860      $ (1,981,860 )    $ —      $ —  

 Citigroup Global Markets, Inc.

     45,882,215        (45,882,215 )      —        —  

 Goldman Sachs & Co. LLC

     9,169,854        (9,169,854 )      —        —  

 J.P. Morgan Securities LLC

     145,117,800        (145,117,800 )      —        —  

 Morgan Stanley

     109,392,650        (109,392,650 )      —        —  

 National Financial Services LLC

     3,125,098        (3,125,098 )      —        —  

 State Street Bank & Trust Co.

     28,501,368        (28,501,368 )      —        —  
 

 

 

     

 

 

    

 

 

     

 

 

  
  $ 343,170,845      $ (343,170,845 )    $ —      $ —  
 

 

 

     

 

 

    

 

 

     

 

 

  

 

 

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Notes to Financial Statements (continued)

 

 

         
 Fund Name/Counterparty   Securities
Loaned at Value		      Cash
Collateral Received(a)		     Non-Cash
Collateral Received,
at Fair Value(a)		      Net Amount  

 Technology Opportunities

          

 Goldman Sachs & Co. LLC

   $ 9,045,904      $ (8,833,200 )    $ —      $  212,704  
 

 

 

     

 

 

    

 

 

     

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Corporation, on behalf of Capital Appreciation, and the Trust, on behalf of Health Sciences Opportunities, Mid-Cap Growth Equity and Technology Opportunities, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services and with respect to Capital Appreciation, administrative services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

   
    Investment Advisory Fees  
Average Daily Net Assets   Capital Appreciation  

First $1 billion

     0.650 % 

$1 billion - $1.5 billion

     0.625  

$1.5 billion - $5 billion

     0.600  

$5 billion - $7.5 billion

     0.575  

Greater than $7.5 billion

     0.550  

 

        
   
    Investment AdvisoryFees  
Average Daily Net Assets   Health Sciences Opportunities  

First $1 billion

     0.750 % 

$1 billion - $2 billion

     0.700  

$2 billion - $3 billion

     0.675  

$3 billion - $10 billion

     0.650  

Greater than $10 billion

     0.640  

 

   
    Investment Advisory Fees  
Average Daily Net Assets   Technology Opportunities  

First $1 billion

     0.820 % 

$1 billion - $3 billion

     0.770  

$3 billion - $5 billion

     0.740  

$5 billion - $10 billion

     0.710  

Greater than $10 billion

     0.700  

 

  
   
    Investment Advisory Fees  
Average Daily Net Assets   Mid-Cap Growth Equity  

First $1 billion

     0.700 % 

$1 billion - $3 billion

     0.660  

$3 billion - $5 billion

     0.630  

$5 billion - $10 billion

     0.610  

$10 billion - $18 billion

     0.600  

Greater than $18 billion

     0.590  

Service and Distribution Fees: The Corporation, on behalf of Capital Appreciation, and the Trust, on behalf of Health Sciences Opportunities, Mid-Cap Growth Equity and Technology Opportunities, entered into a Distribution Agreement and a Distribution and Service Plan with BlackRock Investments, LLC (“BRIL”), an affiliate of the Manager.

 

 

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Notes to Financial Statements (continued)

 

 

Pursuant to the Distribution and Service Plan and in accordance with Rule 12b-1 under the 1940 Act, each Fund pays BRIL ongoing service and distribution fees. The fees are accrued daily and paid monthly at annual rates based upon the average daily net assets of the relevant share class of each Fund as follows:

 

       
    Capital Appreciation            Health Sciences Opportunities  
Share Class   Service Fees     Distribution Fees             Service Fees     Distribution Fees  

Service

     N/A       N/A          0.25 %      N/A  

Investor A

     0.25 %      N/A          0.25       N/A  

Investor C

     0.25       0.75 %         0.25       0.75 % 

Class R

     0.25       0.25                0.25       0.25  
                
       
    Mid-Cap Growth Equity            Technology Opportunities  
Share Class   Service Fees     Distribution Fees             Service Fees     Distribution Fees  

Service

     0.25 %      N/A          0.25 %      N/A  

Investor A

     0.25       N/A          0.25       N/A  

Investor C

     0.25       0.75 %         0.25       0.75 % 

Class R

     0.25       0.25                0.25       0.25  

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

For the year ended May 31, 2025, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

 

           
Fund Name   Service      Investor A      Investor C      Class R      Total  

Capital Appreciation

   $ —      $  5,396,670      $ 397,242      $ 122,493      $ 5,916,405  

Health Sciences Opportunities

      72,062        6,780,276         2,649,465         1,197,372        10,699,175  

Mid-Cap Growth Equity

     134,128        3,882,100        1,669,052        402,622        6,087,902  

Technology Opportunities

     127,813        5,202,710        2,975,871        235,810        8,542,204  

Administration: The Trust, on behalf of Health Sciences Opportunities, Mid-Cap Growth Equity and Technology Opportunities, entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of each Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.

 

   
Average Daily Net Assets   Administration Fees  

First $500 million

     0.0425 % 

$500 million - $1 billion

     0.0400  

$1 billion - $2 billion

     0.0375  

$2 billion - $4 billion

     0.0350  

$4 billion - $13 billion

     0.0325  

Greater than $13 billion

     0.0300  

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

For the year ended May 31, 2025, the following table shows the class specific administration fees borne directly by each share class of each Fund:

 

               
Fund Name   Institutional      Service      Investor A      Investor C      Class K      Class R      Total  

Health Sciences Opportunities

   $  807,567      $  5,777      $  543,521      $  53,119      $  99,370      $  47,986      $  1,557,340  

Mid-Cap Growth Equity

     885,773        10,755        311,209        33,460        802,213        16,139        2,059,549  

Technology Opportunities

     599,812        10,239        416,830        59,619        67,789        9,444        1,163,733  

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended May 31, 2025, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

 

     
Fund Name   Institutional      Total  

Capital Appreciation

   $  168,684      $  168,684  

 

 

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   49

Notes to Financial Statements (continued)

 

 

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended May 31, 2025, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

               
Fund Name   Institutional      Service      Investor A      Investor C      Class K      Class R      Total  

Capital Appreciation

   $ 3,178      $ —      $  102,553      $ 8,115      $ 3,551      $ 254      $  117,651  

Health Sciences Opportunities

      17,312         482        92,594         12,883        2,512        1,154        126,937  

Mid-Cap Growth Equity

     64        331        163,547        3,955         10,199         1,222        179,318  

Technology Opportunities

     7,571        154        49,529        8,597        1,546        784        68,181  

For the year ended May 31, 2025, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

 

               
Fund Name   Institutional      Service      Investor A      Investor C      Class K      Class R      Total  

Capital Appreciation

   $ 684,825      $ —      $ 1,698,737      $ 62,440      $ 28,728      $ 45,844      $  2,520,574  

Health Sciences Opportunities

      3,820,135        46,582        2,580,991         287,262        28,466         485,546        7,248,982  

Mid-Cap Growth Equity

     5,808,195        102,986        2,467,463        184,463         147,631        177,290        8,888,028  

Technology Opportunities

     2,982,868        67,324        2,249,588        265,586        10,463        92,342        5,668,171  

Other Fees: For the year ended May 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

 

   
Fund Name   Amounts  

Capital Appreciation

   $ 48,349  

Health Sciences Opportunities

     45,924  

Mid-Cap Growth Equity

     39,427  

Technology Opportunities

     122,168  

For the year ended May 31, 2025, affiliates received CDSCs as follows:

 

         
Share Class  

Capital

Appreciation

     

Health

Sciences

Opportunities

     

Mid-Cap

Growth

Equity

     

Technology

Opportunities

  

Investor A

   $ 4,662      $ 10,753      $  17,674      $ 2,618  

Investor C

     2,337        9,550        5,190        17,787  

Expense Limitations, Waivers, Reimbursements, and Recoupments: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the directors who are not “interested persons” of the Corporation or the Trust, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of a Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended May 31, 2025, the amounts waived were as follows:

 

   
Fund Name   Amounts Waived  

Capital Appreciation

   $ 3,139  

Health Sciences Opportunities

     126,907  

Mid-Cap Growth Equity

     18,061  

Technology Opportunities

     36,173  

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended May 31, 2025, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

With respect to each Fund (except Health Sciences Opportunities), the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The current expense limitations as a percentage of average daily net assets are as follows:

 

       
Share Class   Capital Appreciation     Mid-Cap Growth Equity     Technology Opportunities  

Institutional

     0.67 %      0.80 %      0.92 % 

Service

     N/A       1.05       1.17  

Investor A

     0.92       1.05       1.17  

Investor C 

     1.67       1.80       1.92  

Class K

     0.62       0.75       0.87  

Class R

     1.17       1.30       1.42  

 

 

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Notes to Financial Statements (continued)

 

 

Prior to December 12, 2024, the expense limitations as a percentage of average daily net assets for Capital Appreciation were 1.94% for Investor C and 0.72% for Class K.

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2026 (or June 30, 2035 with respect to Capital Appreciation), unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund.

For the year ended May 31, 2025, Capital Appreciation waived and/or reimbursed the Manager investment advisory fees and other expenses of $423,410, which is included in fees waived and/or reimbursed by the Manager in the Statements of Operations.

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific and transfer agent fees waived and/or reimbursed by the Manager — class specific, respectively, in the Statements of Operations. For the year ended May 31, 2025, class specific expense waivers and/or reimbursements were as follows:

 

     Administration Fees Waived by the Manager - Class Specific  
Fund Name   Institutional      Service      Investor A      Investor C      Class R      Total  

Mid-Cap Growth Equity

   $ 877,672      $  10,755      $  310,756      $  13,600      $  16,140      $  1,228,923  

Technology Opportunities

     298,081        10,239        314,369        13,900        9,444        646,033  

 

     Transfer Agent Fees Waived and/or Reimbursed by the Manager - Class Specific  
Fund Name   Institutional      Service      Investor A      Investor C      Class K      Class R      Total  

Capital Appreciation

   $ 122,721      $ —      $  235,968      $ 18,930      $ 2,674      $  12,460      $ 392,753  

Mid-Cap Growth Equity

     457,058         37,770        582,290        2,898        —        78,849         1,158,865  

Technology Opportunities

     21,652        11,430        74,514        146        —        40,550        148,292  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Funds are responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Funds bear to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, the money market fund will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.

Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. Each Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, Capital Appreciation, Health Sciences Opportunities, Mid-Cap Growth Equity and Technology Opportunities retains 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, Capital Appreciation, Health Sciences Opportunities, Mid-Cap Growth Equity and Technology Opportunities, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 84% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2025, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, each Fund would retain for the remainder of that calendar year securities lending income in an amount equal to 81% of securities lending income (which excluded collateral investment fees), and this amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the year ended May 31, 2025, each Fund paid BIM the following amounts for securities lending agent services:

 

   
Fund Name   Amounts  

Capital Appreciation

   $ 752  

Health Sciences Opportunities

     83,299  

Mid-Cap Growth Equity

      213,547  

Technology Opportunities

     32,141  

 

 

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Notes to Financial Statements (continued)

 

 

Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the SEC, Capital Appreciation could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by Capital Appreciation’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.

During the period ended, March 3, 2025, Capital Appreciation did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Corporation and the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Corporation’s/Trust’s Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors or trustees. For the year ended May 31, 2025, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

       
Fund Name   Purchases      Sales      Net Realized
Gain (Loss)		  

Mid-Cap Growth Equity

   $  27,786,897      $ —      $ —  

6. PURCHASES AND SALES

For the year ended May 31, 2025, purchases and sales of investments, excluding short-term securities, were as follows:

 

     
Fund Name   Purchases      Sales  

Capital Appreciation

   $ 1,047,834,214      $ 1,447,746,235  

Health Sciences Opportunities

      3,331,926,581        4,958,564,997  

Mid-Cap Growth Equity

     8,986,136,351         12,986,438,391  

Technology Opportunities

     2,966,738,905        3,245,981,178  

7. INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of May 31, 2025, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of date of these financial statements, all of which are subject to change, possibly with retroactive effect which may impact the Funds’ NAV.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, the following permanent differences attributable to nondeductible expenses, distributions in connection with fund share redemptions and net operating losses were reclassified to the following accounts:

 

     
Fund Name   Paid-in capital     Accumulated earnings (loss)  

Capital Appreciation

   $ (12,779,076 )    $ 12,779,076  

Health Sciences Opportunities

     53,762,197       (53,762,197 ) 

Mid-Cap Growth Equity

     (56,322,591 )      56,322,591  

Technology Opportunities

     (30,839,086 )      30,839,086  

 

 

52  

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Notes to Financial Statements (continued)

 

 

The tax character of distributions paid was as follows:

 

     
Fund Name   Year Ended
05/31/25		      Year Ended
05/31/24		  

Capital Appreciation

     

Ordinary income

   $ 27,766,660      $ 10,641,994  

Long term capital gains

     404,359,122        109,281,374  
 

 

 

     

 

 

  
  $  432,125,782      $  119,923,368  
 

 

 

     

 

 

  

Health Sciences Opportunities

     

Ordinary income

   $ 21,909,727      $ 29,900,676  

Long term capital gains

     623,859,359        288,843,746  
 

 

 

     

 

 

  
  $ 645,769,086      $ 318,744,422  
 

 

 

     

 

 

  

Technology Opportunities

     

Long term capital gains

   $ 244,341,984      $ —  
 

 

 

     

 

 

  

 

 

As of May 31, 2025, the tax components of accumulated net earnings were as follows:

 

         
Fund Name   Undistributed Long-Term
Capital Gains		      Net Unrealized
Gains (Losses)(a)		      Qualified Late-Year
Ordinary Losses(b)		      Total  

Capital Appreciation

   $ 277,622,485      $ 2,126,763,169      $ (8,738,786 )     $ 2,395,646,868  

Health Sciences Opportunities

     380,460,566        2,256,446,625        (2,057,509 )       2,634,849,682  

Mid-Cap Growth Equity

     336,521,683        2,686,207,974        (22,092,945 )       3,000,636,712  

Technology Opportunities

     384,090,449        2,786,994,956        (13,909,027 )       3,157,176,378  

 

(a) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales and straddles, the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts, characterization of corporate actions and the realization for tax purposes of unrealized gains on investments in passive foreign investment companies.

 
(b) 

The Funds have elected to defer these qualified late-year losses and recognize such losses in the next taxable year.

 

During the year ended May 31, 2025, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:

 

   
Fund Name    Utilized  

Mid-Cap Growth Equity

    $  1,282,051,982  

Technology Opportunities

      441,794,511  

As of May 31, 2025, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

         
Fund Name   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

Capital Appreciation

   $  1,489,111,526      $ 2,149,678,453      $ (22,917,073 )    $  2,126,761,380  

Health Sciences Opportunities

     4,316,629,022        2,488,494,823        (232,091,326 )      2,256,403,497  

Mid-Cap Growth Equity

     6,355,681,979        2,746,607,670        (60,424,432 )      2,686,183,238  

Technology Opportunities

     3,285,908,831        2,854,468,732        (67,342,683 )      2,787,126,049  

8. BANK BORROWINGS

The Corporation and the Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day,

$2.40 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2026 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2025, the Funds did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability;

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   53

Notes to Financial Statements (continued)

 

 

(iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A Fund may invest in illiquid investments. An illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause each Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a Fund may lose value, regardless of the individual results of the securities and other instruments in which a Fund invests. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.

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

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

The Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

 

54  

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Notes to Financial Statements (continued)

 

 

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     
    Year Ended 05/31/25     Year Ended 05/31/24  

Fund Name/Share Class

   Shares     Amount     Shares     Amount  

 Capital Appreciation

        

Institutional

        

Shares sold

     2,710,540     $ 112,834,100       2,375,172     $ 85,564,796  

Shares issued in reinvestment of distributions

     1,780,020       75,331,070       607,843       20,849,409  

Shares redeemed

     (3,821,884 )      (162,356,316)       (5,700,478 )      (206,766,629)  
 

 

 

    

 

 

    

 

 

    

 

 

  
    668,676     $ 25,808,854       (2,717,463 )    $ (100,352,424 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     2,783,717     $ 100,946,288       3,059,279     $ 95,896,183  

Shares issued in reinvestment of distributions

     6,895,509       250,959,260       2,141,572       64,101,470  

Shares redeemed

     (10,004,202 )      (362,895,783 )      (9,329,188 )      (296,845,503 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (324,976 )    $ (10,990,235 )      (4,128,337 )    $ (136,847,850 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor C

        

Shares sold

     321,989     $ 5,772,361       259,279     $ 4,516,743  

Shares issued in reinvestment of distributions

     528,664       9,494,605       150,664       2,462,125  

Shares redeemed and automatic conversion of shares

     (710,891 )      (12,777,860 )      (921,149 )      (15,736,877 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    139,762     $ 2,489,106       (511,206 )    $ (8,758,009 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     1,314,311     $ 55,940,126       1,392,489     $ 50,192,656  

Shares issued in reinvestment of distributions

     1,319,751       56,569,322       625,650       21,705,654  

Shares redeemed

     (2,046,318 )      (87,771,711 )      (9,972,800 )      (372,605,778 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    587,744     $ 24,737,737       (7,954,661 )    $ (300,707,468 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class R

        

Shares sold

     192,144     $ 4,633,334       149,207     $ 3,233,921  

Shares issued in reinvestment of distributions

     180,101       4,414,337       57,317       1,211,907  

Shares redeemed

     (396,828 )      (9,704,008 )      (415,361 )      (9,306,024 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (24,583 )    $ (656,337 )      (208,837 )    $ (4,860,196 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    1,046,623     $ 41,389,125       (15,520,504 )    $ (551,525,947 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

  Health Sciences Opportunities

        

Institutional

        

Shares sold

     7,335,504     $ 526,145,787       8,193,691     $ 583,683,482  

Shares issued in reinvestment of distributions

     4,346,692       311,816,395       2,283,482       157,422,926  

Shares redeemed

     (19,519,518 )      (1,397,601,173)       (16,815,339 )      (1,183,104,439)  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (7,837,322 )    $ (559,638,991 )      (6,338,166 )    $ (441,998,031 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Service

        

Shares sold

     30,670     $ 2,072,463       41,297     $ 2,740,817  

Shares issued in reinvestment of distributions

     35,938       2,410,205       18,476       1,199,629  

Shares redeemed

     (105,871 )      (7,186,693 )      (129,496 )      (8,549,804 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (39,263 )    $ (2,704,025 )      (69,723 )    $ (4,609,358 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     2,404,374     $ 162,210,046       3,148,635     $ 208,743,219  

Shares issued in reinvestment of distributions

     3,310,459       220,806,364       1,628,677       105,093,179  

Shares redeemed

     (8,638,584 )      (575,328,436 )      (8,665,399 )      (573,000,127 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (2,923,751 )    $ (192,312,026 )      (3,888,087 )    $ (259,163,729 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   55

Notes to Financial Statements (continued)

 

 

     
    Year Ended 05/31/25     Year Ended 05/31/24  

Fund Name/Share Class

   Shares     Amount     Shares     Amount  

 Health Sciences Opportunities (continued)

        

Investor C

        

Shares sold

     230,855     $ 12,791,845       340,682     $ 18,635,857  

Shares issued in reinvestment of distributions

     514,028       27,658,619       298,034       15,871,867  

Shares redeemed and automatic conversion of shares

     (2,209,489 )      (119,236,399)       (2,792,967 )      (151,349,046)  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (1,464,606 )    $ (78,785,935 )      (2,154,251 )    $ (116,841,322 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     1,593,956     $ 115,627,270       1,849,326     $ 131,524,955  

Shares issued in reinvestment of distributions

     547,643       39,303,488       255,328       17,603,287  

Shares redeemed

     (2,034,841 )      (146,170,723 )      (2,585,491 )      (183,510,131 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    106,758     $ 8,760,035       (480,837 )    $ (34,381,889 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class R

        

Shares sold

     247,765     $ 15,757,043       293,019     $ 18,639,450  

Shares issued in reinvestment of distributions

     314,853       20,274,657       141,806       8,875,180  

Shares redeemed

     (657,216 )      (42,309,475 )      (663,365 )      (42,582,090 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (94,598 )    $ (6,277,775 )      (228,540 )    $ (15,067,460 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (12,252,782 )    $ (830,958,717 )      (13,159,604 )    $ (872,061,789 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 Mid-Cap Growth Equity

        

Institutional

        

Shares sold

     15,032,152     $ 611,861,106       25,774,794     $ 943,438,772  

Shares redeemed

     (63,014,035 )      (2,576,136,207 )      (53,836,267 )      (1,966,094,068 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (47,981,883 )    $ (1,964,275,101 )      (28,061,473 )    $ (1,022,655,296 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Service

        

Shares sold

     127,661     $ 4,685,835       218,068     $ 7,181,094  

Shares redeemed

     (635,513 )      (23,434,344 )      (648,553 )      (21,108,643 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (507,852 )    $ (18,748,509 )      (430,485 )    $ (13,927,549 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     3,606,779     $ 126,439,042       5,192,371     $ 162,981,384  

Shares redeemed

     (11,454,473 )      (398,340,114 )      (15,109,163 )      (469,268,479 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (7,847,694 )    $ (271,901,072 )      (9,916,792 )    $ (306,287,095 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor C

        

Shares sold

     242,076     $ 6,183,661       459,280     $ 10,686,451  

Shares redeemed and automatic conversion of shares

     (2,201,784 )      (56,464,433 )      (2,320,240 )      (53,855,034 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (1,959,708 )    $ (50,280,772 )      (1,860,960 )    $ (43,168,583 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     14,816,872     $ 610,234,528       23,280,033     $ 866,092,270  

Shares redeemed

     (54,628,834 )      (2,269,019,642 )      (37,065,253 )      (1,369,957,463 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (39,811,962 )    $ (1,658,785,114 )      (13,785,220 )    $ (503,865,193 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class R

        

Shares sold

     368,272     $ 12,381,997       550,929     $ 16,719,131  

Shares redeemed

     (897,697 )      (30,664,264 )      (1,350,214 )      (41,042,668 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (529,425 )    $ (18,282,267 )      (799,285 )    $ (24,323,537 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (98,638,524 )    $  (3,982,272,835 )      (54,854,215 )    $  (1,914,227,253 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

 

 

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Notes to Financial Statements (continued)

 

 

     
    Year Ended 05/31/25     Year Ended 05/31/24  

Fund Name/Share Class

   Shares     Amount     Shares     Amount  

 Technology Opportunities

        

Institutional

        

Shares sold

     10,676,855     $ 750,964,446       9,723,910     $ 537,366,881  

Shares issued in reinvestment of distributions

     1,523,620       112,641,239       —       —  

Shares redeemed

     (12,300,761 )      (862,120,690)       (16,207,338 )      (891,747,608)  
 

 

 

    

 

 

    

 

 

    

 

 

  
    (100,286 )    $ 1,484,995       (6,483,428 )    $ (354,380,727 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Service

        

Shares sold

     257,946     $ 17,247,737       206,830     $ 10,760,963  

Shares issued in reinvestment of distributions

     33,359       2,280,726       —       —  

Shares redeemed

     (316,600 )      (20,353,931 )      (498,430 )      (25,937,289 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (25,295 )    $ (825,468 )      (291,600 )    $ (15,176,326 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor A

        

Shares sold and automatic conversion of shares

     5,044,809     $ 324,334,699       5,008,601     $ 252,087,332  

Shares issued in reinvestment of distributions

     1,325,531       88,320,110       —       —  

Shares redeemed

     (7,322,687 )      (466,015,973 )      (8,228,564 )      (416,589,841 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (952,347 )    $ (53,361,164 )      (3,219,963 )    $ (164,502,509 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Investor C

        

Shares sold

     676,637     $ 33,933,803       731,500     $ 29,296,687  

Shares issued in reinvestment of distributions

     312,597       16,233,137       —       —  

Shares redeemed and automatic conversion of shares

     (1,579,819 )      (79,231,894 )      (2,003,356 )      (79,620,760 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    (590,585 )    $ (29,064,954 )      (1,271,856 )    $ (50,324,073 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

Class K

        

Shares sold

     4,192,619     $ 299,508,059       1,737,800     $ 95,856,044  

Shares issued in reinvestment of distributions

     177,138       13,138,324       —       —  

Shares redeemed

     (1,514,409 )      (107,269,314 )      (1,349,293 )      (74,821,457 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    2,855,348     $ 205,377,069       388,507     $ 21,034,587  
 

 

 

    

 

 

    

 

 

    

 

 

  

Class R

        

Shares sold

     266,788     $ 17,130,381       281,736     $ 14,160,044  

Shares issued in reinvestment of distributions

     31,897       2,120,805       —       —  

Shares redeemed

     (282,790 )      (17,865,794 )      (357,121 )      (17,401,063 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    15,895     $ 1,385,392       (75,385 )    $ (3,241,019 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  
    1,202,730     $ 124,995,870       (10,953,725 )    $ (566,590,067 ) 
 

 

 

    

 

 

    

 

 

    

 

 

  

As of May 31, 2025, shares owned by BlackRock Financial Management, Inc., an affiliate of the Fund, were as follows:

 

   
Share Class   Technology
Opportunities

Class K

   8,673

11. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   57

Report of Independent Registered Public Accounting Firm

 

 

To the Shareholders and the Board of Directors of BlackRock Capital Appreciation Fund, Inc., and the Shareholders of BlackRock Health Sciences Opportunities Portfolio, BlackRock Mid-Cap Growth Equity Portfolio, and BlackRock Technology Opportunities Fund, and the Board of Trustees of BlackRock FundsSM:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock Capital Appreciation Fund, Inc., and BlackRock Health Sciences Opportunities Portfolio, BlackRock Mid-Cap Growth Equity Portfolio, and BlackRock Technology Opportunities Fund of BlackRock FundsSM (the “Funds”), including the schedules of investments, as of May 31, 2025, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the four years in the period then ended, for the period from October 1, 2020 through May 31, 2021, and for the year ended September 30, 2020, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of May 31, 2025, and the results of their operations for the year then ended, the statements of changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the four years in the period then ended, for the period from October 1, 2020 through May 31, 2021, and for the year ended September 30, 2020, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/  Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2025

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

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Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended May 31, 2025:

 

   
Fund Name   Qualified Dividend
Income		  

Capital Appreciation

   $ 14,751,632  

Health Sciences Opportunities

     87,796,333  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as capital gain dividends, subject to a long-term capital gains tax rate as noted below, for the fiscal year ended May 31, 2025:

 

   
Fund Name  

20% Rate

Long-Term
Capital Gain
Dividends

  

Capital Appreciation

   $   404,359,122  

Health Sciences Opportunities

     677,621,556  

Technology Opportunities

     244,341,984  

The Funds hereby designate the following amount, or maximum amount allowable by law, of distributions from direct federal obligation interest for the fiscal year ended May 31, 2025:

 

   
Fund Name   Federal Obligation
Interest		  

Health Sciences Opportunities

   $ 873,066  

The law varies in each state as to whether and what percent of ordinary income dividends attributable to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.

The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended May 31, 2025 qualified for the dividends-received deduction for corporate shareholders:

 

   
Fund Name   Dividends-Received
Deduction		  

Capital Appreciation

     25.86 % 

Health Sciences Opportunities

     100.00  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended May 31, 2025:

 

   
Fund Name   Interest Dividends  

Health Sciences Opportunities

   $ 1,759,217  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends and qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended May 31, 2025:

 

     
Fund Name   Interest-Related
Dividends		      Qualified
Short-Term
Capital Gains		  

Capital Appreciation

   $ —      $ 27,766,660  

Health Sciences Opportunities

     1,759,858        —  

 

 

I M P O R T A N T  T A X I  N F O R M A T I O N

   59

Disclosure of Investment Advisory Agreements

 

The Board of Trustees of BlackRock Funds (the “Trust”) met on April 22, 2025 and May 20-21, 2025 to consider the approval to continue the investment advisory agreement (the “Trust Advisory Agreement”) between the Trust, on behalf of BlackRock Mid-Cap Growth Equity Portfolio (“Mid-Cap Growth Equity Portfolio”), BlackRock Health Sciences Opportunities Portfolio (“Health Sciences Opportunities Portfolio”) and BlackRock Technology Opportunities Fund (“Technology Opportunities Fund”), and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

The Board of Directors of BlackRock Capital Appreciation Fund, Inc. (the “Corporation” or “Capital Appreciation Fund”) met on April 22, 2025 and May 20-21, 2025 to consider the approval to continue the investment advisory agreement (the “Corporation Advisory Agreement”) between the Corporation and the Manager, its investment advisor.

Mid-Cap Growth Equity Portfolio, Health Sciences Opportunities Portfolio, Technology Opportunities Fund and Capital Appreciation Fund are referred to herein individually as a “Fund” or collectively as the “Funds.” The Trust Advisory Agreement and the Corporation Advisory Agreement are referred to herein individually as an “Agreement” or collectively as the “Agreements.” For simplicity: (a) the Board of Trustees of the Trust and the Board of Directors of the Corporation are referred to herein individually as the “Board” and collectively as the “Boards” and the members are referred to as “Board Members”; and (b) the meetings held on April 22, 2025 are referred to as the “April Meeting” and the meetings held on May 20-21, 2025 are referred to as the “May Meeting.”

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Boards consider the approval of the continuation of the pertinent Agreements for each Fund on an annual basis. The Board Members who are not “interested persons” of the Trust or the Corporation, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board Members”). Each Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to the pertinent Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Boards had four quarterly meetings per year, as well as numerous ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Boards similarly met throughout the year. The Boards also held the April Meeting to consider specific information regarding the renewal of the Agreements. In considering the renewal of the Agreements, the Boards assessed, among other things, the nature, extent and quality of the services provided to the pertinent Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the pertinent Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Boards, acting directly and through their committees, considered information that was relevant to their annual consideration of the renewal of the pertinent Agreement(s), including the services and support provided by BlackRock to the Funds and their shareholders. BlackRock also furnished additional information to the Boards in response to specific questions from the Boards. Among the matters the Boards considered, with respect to each Fund, as pertinent, were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, an applicable benchmark, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ investment performance analyses, and the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and each Fund’s adherence to applicable compliance policies and procedures, as applicable; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as applicable; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Boards received and reviewed materials specifically relating to the renewal of the pertinent Agreements. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist their deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding the fees and expenses of each Fund as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the pertinent Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Boards as appropriate regarding BlackRock’s and the Funds’ operations.

At the April Meeting, each Board reviewed materials relating to its consideration of the pertinent Agreements and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting, and such responses were reviewed by the Board Members.

At the May Meeting, each Board concluded, with respect to the pertinent Fund, its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to its

 

 

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Disclosure of Investment Advisory Agreements  (continued)

 

Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

Each Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of the portfolio holdings of the pertinent Fund. Each Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to each Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

Each Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the applicable Fund. Throughout the year, each Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Boards met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. Each Board also reviewed the materials provided by the applicable Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

Each Board considered, among other factors, with respect to BlackRock: the experience of the applicable Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of certain trading, portfolio management, operations and/or information systems owned by BlackRock; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. Each Board engaged in a review of BlackRock’s compensation structure with respect to the applicable Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Boards considered the nature and quality of the administrative and other non-investment advisory services provided to the Funds. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third-parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide each Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers, including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Boards reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. Each Board also considered the operation of BlackRock’s business continuity plans.

B. The Investment Performance of the Funds

Each Board, including the Independent Board Members, reviewed and considered the performance history of the applicable Fund throughout the year and at the April Meeting. The Boards were provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the April meeting. In preparation for the April Meeting, the Boards were also provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2024, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, with respect to each Fund, the applicable Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers. Each Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the year.

In evaluating performance, the Boards focused particular attention on funds with less favorable performance records. The Boards also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Boards recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Boards also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board of the Trust noted that for the one-, three- and five-year periods reported, Technology Opportunities Fund ranked in the first, second and second quartiles, respectively, against its Performance Peers.

The Board of the Trust noted that for the one-, three- and five-year periods reported, Health Sciences Opportunities Portfolio ranked in the second, first and first quartiles, respectively, against its Performance Peers.

The Board of the Corporation noted that for the one-, three- and five-year periods reported, Capital Appreciation Fund ranked in the second, third and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable period.

The Board of the Trust noted that for the one-, three- and five-year periods reported, Mid-Cap Growth Equity Portfolio ranked in the third, fourth and third quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable periods.

 

 

D I S C L O S U R E  O F  I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T S

   61

Disclosure of Investment Advisory Agreements  (continued)

 

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds

Each Board, including the Independent Board Members, reviewed the applicable Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. Each Board also compared the applicable Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Boards considered that the fee and expense information in the Broadridge report for the Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of market volatility. The Boards also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison is subject to Broadridge’s defined peer selection criteria and methodology. The Boards considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board reviewed BlackRock’s profitability methodology and were also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Funds. The Boards reviewed BlackRock’s estimated profitability with respect to the Funds and other funds the Boards currently oversee for the year ended December 31, 2024 compared to available aggregate estimated profitability data provided for the prior two years. The Boards reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Boards thus recognized the limitations of calculating and comparing profitability at the individual fund level.

The Boards received and reviewed statements relating to BlackRock’s financial condition. The Boards reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Boards considered the differences between BlackRock and these other firms, including the contribution of BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available.

Each Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the pertinent Agreement(s) and to continue to provide the high quality of services that is expected by the Board. The Boards further considered factors including but not limited to BlackRock’s commitment of time and resources, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board of the Corporation noted that Capital Appreciation Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile relative to the Fund’s Expense Peers. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Board of the Trust noted that Mid-Cap Growth Equity Portfolio’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio ranked in the fourth and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board considered information provided by BlackRock in response to follow-up questions from the Board regarding the Fund’s total expense ratio relative to its Expense Peers. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Board of the Trust noted that Health Sciences Opportunities Portfolio’s contractual management fee rate ranked in the fourth quartile, and that the actual management fee rate and total expense ratio each ranked in the third quartile relative to the Fund’s Expense Peers. The Board considered information provided by Blackrock in response to follow-up questions from the Board regarding the Fund’s total expense ratio relative to its Expense Peers.

The Board of the Trust noted that Technology Opportunities Fund’s contractual management fee rate ranked in the fourth quartile, and that the actual management fee rate and total expense ratio each ranked in the fourth quartile relative to the Fund’s Expense Peers. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

The Boards also noted that each Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Boards additionally noted that the breakpoints can, conversely, adjust the advisory fee rate upward as the size of the pertinent Fund decreases below certain contractually specified levels.

D. Economies of Scale

Each Board, including the Independent Board Members, considered the extent to which any economies of scale might benefit the Funds in a variety of ways as the assets of the pertinent Fund increase. Each Board considered multiple factors, including the advisory fee rate and breakpoints, unitary fee structure, fee waivers, and/or expense caps, as applicable. Each Board considered the applicable Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

Each Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the applicable Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as

 

 

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Disclosure of Investment Advisory Agreements  (continued)

 

service providers to the Fund, including for administrative, distribution, securities lending and cash management services. With respect to securities lending, during the year the Boards also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as securities lending agent. The Boards also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Boards also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with their consideration of the pertinent Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the mutual fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board of the Trust’s year-long deliberative process, the Board of the Trust, including the Independent Board Members, unanimously approved the continuation of the Trust Advisory Agreement between the Manager and the Trust, on behalf of Mid-Cap Growth Equity Portfolio, Health Sciences Opportunities Portfolio and Technology Opportunities Fund for a one-year term ending June 30, 2026.

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board of the Corporation’s year-long deliberative process, the Board of the Corporation, including the Independent Board Members, unanimously approved the continuation of the Corporation Advisory Agreement between the Manager and the Corporation, on behalf of Capital Appreciation Fund, for a one-year term ending June 30, 2026.

Based upon their evaluation of all of the aforementioned factors in their totality, as well as other information, the Boards, including the Independent Board Members, were satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund, as pertinent, and its shareholders. In arriving at its decision to approve the Agreements, the Boards did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent legal counsel throughout the deliberative process.

 

 

D I S C L O S U R E  O F  I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T S

   63

Additional Information

 

Changes in and Disagreements with Accountants

Not applicable.

Proxy Results

Not applicable.

Remuneration Paid to Directors, Officers, and Others

Compensation to the independent directors/trustees of the Corporation/Trust is paid by the Corporation/Trust, on behalf of the Funds.

General Information

Quarterly performance, shareholder reports, semi-annual and annual financial statements, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and prospectuses by enrolling in the electronic delivery program.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1. Access the BlackRock website at blackrock.com

2. Select “Access Your Account”

3. Next, select “eDelivery” in the “Related Resources” box and follow the sign-up instructions.

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

 

 

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Additional Information  (continued)

 

Fund and Service Providers

 

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Accounting Agent and Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

The Bank of New York Mellon

New York, NY 10286

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02110

Distributor

BlackRock Investments, LLC

New York, NY 10001

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Corporation/Trust

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

A D D I T I O N A L  I N F O R M A T I O N

   65

Glossary of Terms Used in these Financial Statements

 

Currency Abbreviation
CAD   Canadian Dollar
USD   United States Dollar

 

Portfolio Abbreviation

ADR   American Depositary Receipt
CVR   Contingent Value Rights
NVS   Non-Voting Shares

 

 

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THIS PAGE INTENTIONALLY LEFT BLANK.

 

 

 

 

 

Want to know more?

blackrock.com | 800-441-7762

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

 

 

LOGO

   LOGO

 

LOGO

  MAY 31, 2025

 

  

2025 Annual Financial Statements

and Additional Information

 

 

BlackRock FundsSM

· BlackRock SMID-Cap Growth Equity Fund

 

 

 

 

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 

Table of Contents

 

      Page  

Schedule of Investments

      3  

Statement of Assets and Liabilities

      6  

Statement of Operations

      7  

Statements of Changes in Net Assets

      8  

Financial Highlights

      9  

Notes to Financial Statements

      12  

Report of Independent Registered Public Accounting Firm

      19  

Disclosure of Investment Advisory Agreement

      20  

Additional Information

      23  

Glossary of Terms Used in these Financial Statements

      25  

 

 

2    

Schedule of Investments

May 31, 2025

   

BlackRock SMID-Cap Growth Equity Fund

(Percentages shown are based on Net Assets)

 

Security  

 

Shares

     Value  

Common Stocks

    
Aerospace & Defense — 8.2%            

Axon Enterprise, Inc.(a)

    541     $      405,945  

HEICO Corp.

     739       221,434  

Loar Holdings, Inc.(a)

          2,570       223,718  
   

 

 

  
      851,097  
Air Freight & Logistics — 0.4%            

GXO Logistics, Inc.(a)

    948       39,001  
   

 

 

  
Automobile Components — 0.5%            

Fox Factory Holding Corp.(a)

    1,920       49,248  
   

 

 

  
Biotechnology — 1.7%            

Halozyme Therapeutics, Inc.(a)

    1,261       70,704  

Natera, Inc.(a)

    679       107,099  
   

 

 

  
      177,803  
Broadline Retail — 0.1%            

Etsy, Inc.(a)

    141       7,804  
   

 

 

  
Building Products — 1.8%            

AZEK Co., Inc. (The), Class A(a)

    3,704       183,385  
   

 

 

  
Capital Markets — 7.0%            

Carlyle Group, Inc. (The)

     681       30,781  

MarketAxess Holdings, Inc.

     71       15,365  

Morningstar, Inc.

     629       193,996  

TPG, Inc., Class A

     4,198       202,050  

Tradeweb Markets, Inc., Class A

     1,911       276,044  
   

 

 

  
      718,236  
Commercial Services & Supplies — 2.4%            

Casella Waste Systems, Inc., Class A(a)

    1,564       183,316  

GFL Environmental, Inc.

     1,181       59,558  
   

 

 

  
      242,874  
Construction & Engineering — 3.9%            

Comfort Systems U.S.A., Inc.

     741       354,368  

WillScot Holdings Corp., Class A

     1,624       43,767  
   

 

 

  
      398,135  
Distributors — 0.3%            

Pool Corp.

     94       28,256  
   

 

 

  
Diversified Consumer Services — 5.2%            

Bright Horizons Family Solutions, Inc.(a)

    1,272       164,342  

Duolingo, Inc., Class A(a)

    613       318,521  

European Wax Center, Inc., Class A(a)

    1,795       9,137  

Mister Car Wash, Inc.(a)

    6,710       47,507  
   

 

 

  
      539,507  
Electrical Equipment — 2.5%            

Vertiv Holdings Co., Class A

     2,359       254,607  
   

 

 

  
Electronic Equipment, Instruments & Components —1.0%  

Coherent Corp.(a)

    1,318       99,680  
   

 

 

  
Entertainment — 4.7%            

Liberty Media Corp.—Liberty Formula One, Class C, NVS(a)

    2,480       239,394  

Live Nation Entertainment, Inc.(a)

    1,784       244,747  
   

 

 

  
      484,141  
Financial Services — 1.2%            

Affirm Holdings, Inc., Class A(a)

    2,144       111,274  

Jack Henry & Associates, Inc.

     95       17,211  
   

 

 

  
      128,485  
Food Products — 0.7%            

Freshpet, Inc.(a)

    943       75,591  
   

 

 

  
Security  

 

Shares

     Value  
Ground Transportation — 1.4%            

Saia, Inc.(a)

    541     $      143,046  
   

 

 

  
Health Care Equipment & Supplies — 3.4%            

Align Technology, Inc.(a)

    663       119,963  

Inmode Ltd.(a)

    232       3,401  

Inspire Medical Systems, Inc.(a)

    124       17,137  

Masimo Corp.(a)

          1,278       207,675  

Teleflex, Inc.

     29       3,546  
   

 

 

  
      351,722  
Health Care Providers & Services — 0.7%            

Surgery Partners, Inc.(a)

    2,934       69,272  
   

 

 

  
Health Care Technology — 0.2%            

Phreesia, Inc.(a)

    879       21,527  
   

 

 

  
Hotels, Restaurants & Leisure — 5.6%            

Churchill Downs, Inc.

     1,322       126,212  

DraftKings, Inc., Class A(a)

    5,131       184,100  

Planet Fitness, Inc., Class A(a)

    2,241       230,442  

Vail Resorts, Inc.

     231       36,999  
   

 

 

  
      577,753  
Industrial REITs — 0.2%            

Rexford Industrial Realty, Inc.

     558       19,664  
   

 

 

  
Interactive Media & Services — 1.6%            

Match Group, Inc.

     430       12,874  

Pinterest, Inc., Class A(a)

    847       26,350  

Reddit, Inc., Class A(a)

    1,088       122,237  
   

 

 

  
      161,461  
IT Services — 1.3%            

Globant SA(a)

    589       57,775  

MongoDB, Inc., Class A(a)

    416       78,553  
   

 

 

  
      136,328  
Life Sciences Tools & Services — 2.7%            

Bio-Techne Corp.

     737       35,671  

Medpace Holdings, Inc.(a)

    191       56,326  

Repligen Corp.(a)

    945       111,576  

West Pharmaceutical Services, Inc.

     377       79,490  
   

 

 

  
      283,063  
Machinery — 2.9%            

AutoStore Holdings Ltd.(a)(b)

    58,481       30,685  

Energy Recovery, Inc.(a)

    4,082       51,474  

Graco, Inc.

     1,670       141,382  

IDEX Corp.

     449       81,229  
   

 

 

  
      304,770  
Oil, Gas & Consumable Fuels — 2.8%            

Northern Oil & Gas, Inc.

     1,323       35,165  

Permian Resources Corp., Class A

     5,449       68,712  

Texas Pacific Land Corp.

     165       183,815  
   

 

 

  
      287,692  
Pharmaceuticals — 2.4%            

Galderma Group AG

     1,871       245,818  
   

 

 

  
Professional Services — 1.4%            

Booz Allen Hamilton Holding Corp., Class A

     1,130       120,063  

Paylocity Holding Corp.(a)

    148       28,253  
   

 

 

  
      148,316  
Real Estate Management & Development — 0.6%        

Landbridge Co. LLC, Class A

     928       66,306  
   

 

 

  
Semiconductors & Semiconductor Equipment — 8.8%        

ASM International NV

     329       179,057  
 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   3

Schedule of Investments (continued)

May 31, 2025

   

BlackRock SMID-Cap Growth Equity Fund

(Percentages shown are based on Net Assets)

 

Security  

 

Shares

     Value  
Semiconductors & Semiconductor Equipment (continued)        

Astera Labs, Inc.(a)

          1,273     $      115,487  

BE Semiconductor Industries NV

     1,229       148,519  

Credo Technology Group Holding Ltd.(a)

    2,927       178,430  

Entegris, Inc.

     1,946       133,768  

Lattice Semiconductor Corp.(a)

    1,060       47,636  

Monolithic Power Systems, Inc.

     30       19,857  

Onto Innovation, Inc.(a)

    970       89,182  
   

 

 

  
      911,936  
Software — 10.6%            

ANSYS, Inc.(a)

    229       75,758  

Bentley Systems, Inc., Class B

     4,139       197,554  

Confluent, Inc., Class A(a)

    6,317       145,480  

CyberArk Software Ltd.(a)

    332       127,083  

Gitlab, Inc., Class A(a)

    2,467       112,273  

Guidewire Software, Inc.(a)

    732       157,395  

JFrog Ltd.(a)

    1,776       76,261  

Manhattan Associates, Inc.(a)

    392       74,002  

Monday.com Ltd.(a)

    242       71,993  

PTC, Inc.(a)

    130       21,882  

Zscaler, Inc.(a)

    123       33,911  
   

 

 

  
      1,093,592  
Specialty Retail — 3.3%            

Carvana Co., Class A(a)

    772       252,567  

Floor & Decor Holdings, Inc., Class A(a)

    1,211       86,817  
   

 

 

  
      339,384  
Technology Hardware, Storage & Peripherals — 1.6%  

Pure Storage, Inc., Class A(a)

    3,082       165,164  
   

 

 

  
Textiles, Apparel & Luxury Goods — 3.5%            

Brunello Cucinelli SpA

     1,522       187,573  

On Holding AG, Class A(a)

    2,855       169,559  
   

 

 

  
      357,132  
Security  

 

Shares

     Value  
Trading Companies & Distributors — 2.7%            

Core & Main, Inc., Class A(a)

          1,887     $      103,427  

QXO, Inc.

     6,828       116,076  

SiteOne Landscape Supply, Inc.(a)

    540       63,077  
   

 

 

  
      282,580  
   

 

 

  

Total Long-Term Investments — 99.3%
(Cost: $9,019,954)

       10,244,376  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 0.9%            

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(c)(d)

    97,761       97,761  
   

 

 

  

Total Short-Term Securities — 0.9%
(Cost: $97,761)

       97,761  
   

 

 

  

Total Investments — 100.2%
(Cost: $9,117,715)

       10,342,137  

Liabilities in Excess of Other Assets — (0.2)%

       (21,276 ) 
   

 

 

  

Net Assets — 100.0%

     $ 10,320,861  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
05/31/24		    

Purchases

at Cost

     Proceeds
from Sales		    

Net

Realized
Gain (Loss)

     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		     Shares
Held at
05/31/25		     Income    

Capital

Gain

Distributions
from Underlying

Funds

  

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $  451,119     $ —     $  (451,069 )(b)    $ (60 )    $ 10     $ —       —     $ 1,006 (c)    $ —  

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     111,395       —       (13,634 )(b)      —       —       97,761       97,761       1,963       —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  
        $ (60 )    $ 10     $ 97,761       $ 2,969     $ —  
       

 

 

    

 

 

    

 

 

      

 

 

    

 

 

  

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

 

 

4  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock SMID-Cap Growth Equity Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
     Level 1      Level 2      Level 3      Total  

 

  

Assets

            

Investments

            

Long-Term Investments

            

Common Stocks

            

Aerospace & Defense

    $ 851,097      $ —      $ —      $ 851,097  

Air Freight & Logistics

      39,001        —        —        39,001  

Automobile Components

      49,248        —        —        49,248  

Biotechnology

      177,803        —        —        177,803  

Broadline Retail

      7,804        —        —        7,804  

Building Products

      183,385        —        —        183,385  

Capital Markets

      718,236        —        —        718,236  

Commercial Services & Supplies

      242,874        —        —        242,874  

Construction & Engineering

      398,135        —        —        398,135  

Distributors

      28,256        —        —        28,256  

Diversified Consumer Services

      539,507        —        —        539,507  

Electrical Equipment

      254,607        —        —        254,607  

Electronic Equipment, Instruments & Components

      99,680        —        —        99,680  

Entertainment

      484,141        —        —        484,141  

Financial Services

      128,485        —        —        128,485  

Food Products

      75,591        —        —        75,591  

Ground Transportation

      143,046        —        —        143,046  

Health Care Equipment & Supplies

      351,722        —        —        351,722  

Health Care Providers & Services

      69,272        —        —        69,272  

Health Care Technology

      21,527        —        —        21,527  

Hotels, Restaurants & Leisure

      577,753        —        —        577,753  

Industrial REITs

      19,664        —        —        19,664  

Interactive Media & Services

      161,461        —        —        161,461  

IT Services

      136,328        —        —        136,328  

Life Sciences Tools & Services

      283,063        —        —        283,063  

Machinery

      274,085        30,685        —        304,770  

Oil, Gas & Consumable Fuels

      287,692        —        —        287,692  

Pharmaceuticals

      —        245,818        —        245,818  

Professional Services

      148,316        —        —        148,316  

Real Estate Management & Development

      66,306        —        —        66,306  

Semiconductors & Semiconductor Equipment

      584,360        327,576        —        911,936  

Software

      1,093,592        —        —        1,093,592  

Specialty Retail

      339,384        —        —        339,384  

Technology Hardware, Storage & Peripherals

      165,164        —        —        165,164  

Textiles, Apparel & Luxury Goods

      169,559        187,573        —        357,132  

Trading Companies & Distributors

      282,580        —        —        282,580  

Short-Term Securities

            

Money Market Funds

      97,761        —        —        97,761  
  

 

 

     

 

 

     

 

 

     

 

 

  
   $  9,550,485      $  791,652      $  —      $  10,342,137  
  

 

 

     

 

 

     

 

 

     

 

 

  

See notes to financial statements.

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   5

Statement of Assets and Liabilities

May 31, 2025

     

 

    

BlackRock

SMID-Cap

Growth

Equity

Fund

  

ASSETS

  

Investments, at value — unaffiliated(a)

  $ 10,244,376  

Investments, at value — affiliated(b)

    97,761  

Receivables:

  

Securities lending income — affiliated

     60  

Capital shares sold

     45  

Dividends — unaffiliated

     2,221  

Dividends — affiliated

     497  

From the Manager

     1,419  
 

 

 

  

Total assets

     10,346,379  
 

 

 

  

LIABILITIES

  

Payables:

  

Administration fees

     496  

Investment advisory fees

     6,071  

Professional fees

     18,812  

Service fees

     139  
 

 

 

  

Total liabilities

     25,518  
 

 

 

  

Commitments and contingent liabilities

  

NET ASSETS

   $  10,320,861  
 

 

 

  

NET ASSETS CONSIST OF:

  

Paid-in capital

   $ 15,415,207  

Accumulated loss

     (5,094,346 ) 
 

 

 

  

NET ASSETS

   $ 10,320,861  
 

 

 

  

(a) Investments, at cost — unaffiliated

   $ 9,019,954  

(b) Investments, at cost — affiliated

   $ 97,761  

NET ASSET VALUE

  

Institutional

  

Net assets

   $ 67,777  
 

 

 

  

Shares outstanding

     5,229  
 

 

 

  

Net asset value

   $ 12.96  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  
Investor A      

Net assets

   $ 621,673  
 

 

 

  

Shares outstanding

     48,434  
 

 

 

  

Net asset value

   $ 12.84  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  
Class K      

Net assets

   $ 9,631,411  
 

 

 

  

Shares outstanding

     740,159  
 

 

 

  

Net asset value

   $ 13.01  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  

See notes to financial statements.

 

 

6  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Statement of Operations

Year Ended May 31, 2025

 

    

BlackRock

SMID-Cap

Growth

Equity

Fund

  

INVESTMENT INCOME

  

Dividends — unaffiliated

   $ 40,490  

Dividends — affiliated

     1,963  

Securities lending income — affiliated — net

     1,006  

Foreign taxes withheld

     (895 ) 
 

 

 

  

Total investment income

     42,564  
 

 

 

  

EXPENSES

  

Investment advisory

     71,900  

Professional

     17,993  

Trustees and Officer

     6,175  

Administration — class specific

     5,717  

Service — class specific

     1,286  

Miscellaneous

     58  
 

 

 

  

Total expenses excluding interest expense

     103,129  

Interest expense

     38  
 

 

 

  

Total expenses

     103,167  
 

 

 

  

Less:

  

Fees waived and/or reimbursed by the Manager

     (24,201 ) 
 

 

 

  

Total expenses after fees waived and/or reimbursed

     78,966  
 

 

 

  

Net investment loss

     (36,402 ) 
 

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

  

Net realized gain (loss) from:

  

Investments — unaffiliated

     (190,450 ) 

Investments — affiliated

     (60 ) 

Foreign currency transactions

     32  
 

 

 

  
    (190,478 ) 
 

 

 

  

Net change in unrealized appreciation (depreciation) on:

  

Investments — unaffiliated

     540,213  

Investments — affiliated

     10  
 

 

 

  
    540,223  
 

 

 

  

Net realized and unrealized gain

     349,745  
 

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $  313,343  
 

 

 

  

See notes to financial statements.

 

 

S T A T E M E N T  O F  O P E R A T I O N S

   7

Statements of Changes in Net Assets

   

 

 

 

    BlackRock SMID-Cap Growth Equity Fund  
     Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

 

  

OPERATIONS

    

Net investment loss

   $ (36,402 )    $ (27,880 ) 

Net realized loss

     (190,478 )      (581,925 ) 

Net change in unrealized appreciation (depreciation)

     540,223       1,596,390  
 

 

 

    

 

 

  

Net increase in net assets resulting from operations

     313,343       986,585  
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

    

Net increase in net assets derived from capital share transactions

     355,431       132,415  
 

 

 

    

 

 

  

NET ASSETS

    

Total increase in net assets

     668,774       1,119,000  

Beginning of year

     9,652,087       8,533,087  
 

 

 

    

 

 

  

End of year

   $ 10,320,861     $ 9,652,087  
 

 

 

    

 

 

  

See notes to financial statements.

 

 

8  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights

(For a share outstanding throughout each period)

   

 

 

 

    BlackRock SMID-Cap Growth Equity Fund  
    Institutional  
     
 Year Ended
05/31/25		  
 		     
 Year Ended
05/31/24		  
 		     
 Year Ended
05/31/23		  
 		     

 Period from
06/29/21

to 05/31/22

  
(a)  

 

         

Net asset value, beginning of period

   $ 12.62      $ 11.32      $ 11.45      $ 20.00  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net investment loss(b)

    (0.06 )       (0.05 )       (0.04 )       (0.09 ) 

Net realized and unrealized gain (loss)

     0.40        1.35        (0.09 )       (8.46 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     0.34        1.30        (0.13 )       (8.55 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of period

   $ 12.96      $ 12.62      $ 11.32      $ 11.45  
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

          

Based on net asset value

     2.69 %       11.48 %       (1.14 )%       (42.75 )%(d) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

          

Total expenses

     1.09 %       1.12 %       1.23 %       1.06 %(f)(g) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.85 %       0.85 %       0.85 %       0.85 %(f) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net investment loss

     (0.44 )%       (0.40 )%       (0.36 )%       (0.56 )%(f) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

           

Net assets, end of period (000)

   $ 68      $ 66      $ 59      $ 59  
 

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     36 %       36 %       53 %       54 % 
 

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.07%.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   9

Financial Highlights (continued)

(For a share outstanding throughout each period)

   

 

 

 

    BlackRock SMID-Cap Growth Equity Fund (continued)  
    Investor A  
     
 Year Ended
05/31/25		  
 		     
 Year Ended
05/31/24		  
 		     
 Year Ended
05/31/23		  
 		     

 Period from

06/29/21

to 05/31/22

  

(a) 

 

         

Net asset value, beginning of period

   $ 12.53      $ 11.26      $ 11.43      $ 20.00  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net investment loss(b)

    (0.09 )       (0.08 )       (0.07 )       (0.13 ) 

Net realized and unrealized gain (loss)

     0.40        1.35        (0.10 )       (8.44 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     0.31        1.27        (0.17 )       (8.57 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of period

   $ 12.84      $ 12.53      $ 11.26      $ 11.43  
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

          

Based on net asset value

     2.47 %       11.28 %       (1.49 )%       (42.85 )%(d) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

          

Total expenses

     1.33 %       1.37 %       1.48 %       1.31 %(f)(g) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     1.10 %       1.10 %       1.10 %       1.10 %(f) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net investment loss

     (0.67 )%       (0.64 )%       (0.61 )%       (0.80 )%(f) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

           

Net assets, end of period (000)

   $ 622      $ 220      $ 82      $ 66  
 

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     36 %       36 %       53 %       54 % 
 

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.32%.

See notes to financial statements.

 

 

10  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

   

 

 

 

    BlackRock SMID-Cap Growth Equity Fund (continued)  
    Class K  
     
 Year Ended
05/31/25		  
 		     
 Year Ended
05/31/24		  
 		     
 Year Ended
05/31/23		  
 		     

 Period from
06/29/21

to 05/31/22

  
(a)  

 

         

Net asset value, beginning of period

   $ 12.66      $ 11.34      $ 11.46      $ 20.00  
 

 

 

     

 

 

     

 

 

     

 

 

  

Net investment loss(b)

    (0.04 )       (0.04 )       (0.03 )       (0.07 ) 

Net realized and unrealized gain (loss)

     0.39        1.36        (0.09 )       (8.47 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     0.35        1.32        (0.12 )       (8.54 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of period

   $ 13.01      $ 12.66      $ 11.34      $ 11.46  
 

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

          

Based on net asset value

     2.77 %       11.64 %       (1.05 )%       (42.70 )%(d) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

          

Total expenses

     0.99 %       1.02 %       1.13 %       0.96 %(f)(g) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.75 %       0.75 %       0.75 %       0.75 %(f) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Net investment loss

     (0.34 )%       (0.30 )%       (0.26 )%       (0.46 )%(f) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

           

Net assets, end of period (000)

   $ 9,631      $ 9,366      $ 8,392      $ 8,528  
 

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     36 %       36 %       53 %       54 % 
 

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f)

Annualized.

(g) 

Audit costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 0.97%.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   11

Notes to Financial Statements

 

1. ORGANIZATION

BlackRock FundsSM (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 SMID-Cap Growth Equity Fund (the “Fund”) is a series of the Trust. The Fund is classified as diversified.

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

 

       
Share Class   Initial Sales Charge      CDSC     Conversion Privilege  

Institutional and Class K Shares

     No        No       None  

Investor A Shares

     Yes        No (a)      None  

 

  (a)

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager” or “BAL”) or its affiliates, is included in a complex of funds referred to as the BlackRock Multi-Asset Complex.

On February 20, 2025, the Board of Trustees of the Trust (the “Board”) approved the closure of the Fund to new and subsequent investments and thereafter to liquidate the Fund. Accordingly, effective 4:00 p.m. (Eastern time) on June 6, 2025, the Fund will no longer accept orders to purchase Fund shares. On June 13, 2025, (the “Liquidation Date”), all of the assets of the Fund will be liquidated completely, the shares of any shareholders on the Liquidation Date will be redeemed at the net asset value (“NAV”) per share and the Fund will then be terminated as a series of the Trust.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Fund is informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Fund may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which the Fund invests. These foreign taxes, if any, are paid by the Fund and are reflected in its Statement of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of May 31, 2025, if any, are disclosed in the Statement of Assets and Liabilities.

The Fund files withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Fund may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statement of Operations includes tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Cash: The Fund may maintain cash at its custodian which, at times may exceed United States federally insured limits. The Fund may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Fund is obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statement of Operations.

 

 

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Notes to Financial Statements (continued)

 

Collateralization: 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.

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

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

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

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances. For financial reporting purposes, custodian credits, if any, are included in interest income in the Statement of Operations.

Segment Reporting: The Fund adopted Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures (“ASU 2023-07”) during the period. The Fund’s adoption of the new standard impacted financial statement disclosures only and did not affect the Fund’s financial position or results of operations.

The Chief Financial Officer acts as the Fund’s Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance and allocating resources with respect to the Fund. The CODM has concluded that the Fund operates as a single operating segment since the Fund has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Fund’s financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board has approved the designation of the Fund’s Manager as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s NAV.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that 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 Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the measurement date.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. 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 that the Fund has the ability to access for identical assets or liabilities;

 

  •  

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

 

  •  

Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The

 

 

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Notes to Financial Statements (continued)

 

inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services. The Manager is responsible for the management of the Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of the Fund.

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

 

   
Average Daily Net Assets   Investment Advisory Fees  

First $1 billion

     0.70 % 

$1 billion - $3 billion

     0.66  

$3 billion - $5 billion

     0.63  

$5 billion - $10 billion

     0.61  

Greater than $10 billion

     0.60  

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:

 

     
Share Class   Service Fees     Distribution Fees  

Investor A

     0.25 %      N/A  

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

 

 

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Notes to Financial Statements (continued)

 

For the year ended May 31, 2025, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

 

   
     Investor A  

Service — class specific

   $ 1,286  

Administration: The Trust, on behalf of the Fund, entered into an Administration Agreement with BAL, to provide general administrative services (other than investment advice and related portfolio activities). BAL has agreed to bear all of the Fund’s ordinary operating expenses, excluding, generally, investment advisory fees, distribution fees, brokerage and other expenses related to the execution of portfolio transactions, extraordinary expenses and certain other expenses which are borne by the Fund. BAL may delegate certain of its administration duties to sub-administrators. BAL is entitled to receive for these administrative services an annual fee based on the average daily net assets of the Fund as follows:

 

Institutional

     0.15 % 

Investor A

     0.15  

Class K

     0.05  

From time to time, BAL may waive such fees in whole or in part. Any such waiver will reduce the expenses of the Fund and, accordingly, have a favorable impact on its performance. For the year ended May 31, 2025, there were no fees waived/reimbursed by BAL pursuant to this arrangement.

For the year ended May 31, 2025, the following table shows the class specific administration fees borne directly by each share class of the Fund:

 

               
     Institutional              Investor A               Class K               Total   

Administration — class specific

   $ 102              $ 771               $ 4,844               $  5,717   

Other Fees: For the year ended May 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares for a total of $706.

Expense Limitations, Waivers and Reimbursements: The Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended May 31, 2025, the amount waived was $33.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. For the year ended May 31, 2025, there were no fees waived by the Manager pursuant to this arrangement.

The fees and expenses of the Fund’s Independent Trustees, counsel to the Independent Trustees and the Fund’s independent registered public accounting firm (together, the “independent expenses”) are paid directly by the Fund. BAL has contractually agreed to reimburse the Fund or provide an offsetting credit for such independent expenses through June 30, 2026. The amount waived is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended May 31, 2025, the amount waived was $24,168.

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, the money market fund will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.

Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

 

 

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Notes to Financial Statements (continued)

 

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 84% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2025, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, the Fund would retain for the remainder of that calendar year securities lending income in an amount equal to 81% of securities lending income (which excluded collateral investment fees), and this amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the year ended May 31, 2025, the Fund paid BIM $227 for securities lending agent services.

Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the SEC, the Fund could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.

During the period ended March 3, 2025, the Fund did not participate in the Interfund Lending Program.

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

6. PURCHASES AND SALES

For the year ended May 31, 2025, purchases and sales of investments, excluding short-term securities, were $3,916,863 and $3,659,178, 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 U.S. federal income tax provision is required.

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of May 31, 2025, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of date of these financial statements, all of which are subject to change, possibly with retroactive effect which may impact the Fund’s NAV.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, permanent differences attributable to net operating loss were reclassified to the following accounts:

 

     
Fund Name   Paid-in capital     Accumulated earnings (loss)  

BlackRock SMID-Cap Growth Equity Fund

   $ (32,358 )    $ 32,358  

As of May 31, 2025, the tax components of accumulated earnings (loss) were as follows:

 

         
Fund Name   Non-expiring
Capital Loss
Carryforwards(a)		     Net Unrealized
Gains (Losses)(b)		      Qualified Late-Year
Ordinary Losses(c)		     Total  

BlackRock SMID-Cap Growth Equity Fund

   $ (6,278,378 )    $ 1,197,337      $ (13,305 )    $  (5,094,346 ) 

 

(a) 

Amounts available to offset future realized capital gains.

 
(b)

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales.

 
(c) 

The Fund has elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

 

As of May 31, 2025, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

         
Fund Name   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		     Net Unrealized
Appreciation
(Depreciation)		  

BlackRock SMID-Cap Growth Equity Fund

   $  9,144,800      $ 2,488,255      $ (1,290,918 )    $ 1,197,337  

 

 

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Notes to 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 party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2026 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2025, the Fund did not borrow under the credit agreement.

9. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

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

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.

The Fund invests a significant portion of its assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedule of Investments.

The Fund invests a significant portion of its assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Fund invests.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   17

Notes to Financial Statements (continued)

 

10. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

       
    Year Ended 05/31/25            Year Ended 05/31/24  
Share Class   Shares     Amount             Shares     Amount  

Institutional

           

Shares sold

     22     $ 317          —     $ —  
 

 

 

    

 

 

       

 

 

    

 

 

  

Investor A

           

Shares sold

     38,184     $ 452,334          17,493     $ 221,015  

Shares redeemed

     (7,317 )      (98,410 )         (7,238 )      (89,255 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    30,867     $ 353,924          10,255     $ 131,760  
 

 

 

    

 

 

       

 

 

    

 

 

  

Class K

           

Shares sold

     93     $ 1,200          87     $ 1,055  

Shares redeemed

     (1 )      (10 )         (31 )      (400 ) 
 

 

 

    

 

 

       

 

 

    

 

 

  
    92     $ 1,190          56     $ 655  
 

 

 

    

 

 

       

 

 

    

 

 

  
    30,981     $ 355,431          10,311     $ 132,415  
 

 

 

    

 

 

       

 

 

    

 

 

  

As of May 31, 2025, shares owned by BlackRock Financial Management, Inc., an affiliate of the Fund, were as follows:

 

   
Share Class       

Institutional

     5,000  

Investor A

     5,000  

Class K

     740,000  

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, 2025, all of the assets of the Fund were liquidated completely, the shares of any shareholders were redeemed at the NAV per share and the Fund was terminated as a series of the Trust.

 

 

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Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock SMID-Cap Growth Equity Fund and the Board of Trustees of BlackRock FundsSM:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of BlackRock SMID-Cap Growth Equity Fund of BlackRock FundsSM (the “Fund”), including the schedule of investments, as of May 31, 2025, the related statement of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the three years in the period then ended and for the period from June 29, 2021 (commencement of operations) through May 31, 2022, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2025, and the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended, and the financial highlights for each of the three years in the period then ended and for the period from June 29, 2021 (commencement of operations) through May 31, 2022, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2025

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

R E P O R T  O F  I N D E P E N D E N T  R E G I S T E R E D  P U B L I C  A C C O U N T I N G  F I R M

   19

Disclosure of Investment Advisory Agreement

 

The Board of Trustees (the “Board”, the members of which are referred to as “Board Members”) of BlackRock Funds (the “Trust”) met on April 22, 2025 (the “April Meeting”) and May 20-21, 2025 (the “May Meeting”) to consider the approval to continue the investment advisory agreement (the “Agreement”) between the Trust, on behalf of BlackRock SMID-Cap Growth Equity Fund (the “Fund”), and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), the Fund’s investment advisor.

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreement for the Fund on an annual basis. The Board Members who are not “interested persons” of the Trust, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board Members”). The Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to the Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Board had four quarterly meetings per year, as well as numerous ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also held the April Meeting to consider specific information regarding the renewal of the Agreement. In considering the renewal of the Agreement, the Board assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considered information that was relevant to its annual consideration of the renewal of the Agreement, including the services and support provided by BlackRock to the Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ investment performance analyses, and the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as applicable; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreement. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding the Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of the Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreement and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Fund; (g) a summary of aggregate amounts paid by the Fund to BlackRock; (h) sales and redemption data regarding the Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreement and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting, and such responses were reviewed by the Board Members.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

 

 

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Disclosure of Investment Advisory Agreement (continued)

 

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by the Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the experience of the Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of certain trading, portfolio management, operations and/or information systems owned by BlackRock; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to the Fund. BlackRock and its affiliates provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide the Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. The Board also considered the operation of BlackRock’s business continuity plans.

B. The Investment Performance of the Fund

The Board, including the Independent Board Members, reviewed and considered the performance history of the Fund throughout the year and at the April Meeting. The Board was provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the April meeting. In preparation for the April Meeting, the Board was also provided with reports independently prepared by Broadridge, which included an analysis of the Fund’s performance as of December 31, 2024, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of the Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for each of the one-year, three-year and since-inception periods reported, the Fund ranked in the fourth quartile against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable periods. The Board was informed that, among other things, underperformance was driven by stock specific issues as well as an unfavorable macroeconomic backdrop that impacted SMID-cap growth to a higher degree than the overall market. The Board and BlackRock discussed BlackRock’s strategy for improving the Fund’s investment performance. Discussions covered topics such as performance attribution, the Fund’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Fund

The Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Board considered that the fee and expense information in the Broadridge report for the Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of market volatility. The Board also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison is subject to Broadridge’s defined peer selection criteria and methodology. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

 

 

D I S C L O S U R E  O F I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T

   21

Disclosure of Investment Advisory Agreement (continued)

 

The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Fund. The Board reviewed BlackRock’s estimated profitability with respect to the Fund and other funds the Board currently oversees for the year ended December 31, 2024 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized the limitations of calculating and comparing profitability at the individual fund level.

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time and resources, assumption of risk, and liability profile in servicing the Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio ranked in the third and first quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board additionally noted that the breakpoints can, conversely, adjust the advisory fee rate upward as the size of the Fund decreases below certain contractually specified levels. The Board further noted that BlackRock and its affiliates have contractually agreed to reimburse or otherwise compensate the Fund for certain other fees and expenses.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which any economies of scale might benefit the Fund in a variety of ways as the assets of the Fund increase. The Board considered multiple factors, including the advisory fee rate and breakpoints, unitary fee structure, fee waivers, and/or expense caps, as applicable. The Board considered the Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. With respect to securities lending, during the year the Board also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as securities lending agent. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreement, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the mutual fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board, including the Independent Board Members, unanimously approved the continuation of the Agreement between the Manager and the Trust, on behalf of the Fund, for a one-year term ending June 30, 2026. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent legal counsel throughout the deliberative process.

 

 

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Additional Information

 

Changes in and Disagreements with Accountants

Not applicable.

Proxy Results

Not applicable.

Remuneration Paid to Trustees, Officers, and Others

Compensation to the independent directors/trustees of the Trust is paid by the Trust, on behalf of the Fund.

General Information

Quarterly performance, shareholder reports, semi-annual and annual financial statements, current net asset value and other information regarding the Fund may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and prospectuses by enrolling in the electronic delivery program.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

 

1.  

Access the BlackRock website at blackrock.com

2.  

Select “Access Your Account”

3.  

Next, select “eDelivery” in the “Related Resources” box and follow the sign-up instructions.

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

 

 

A D D I T I O N A L  I N F O R M A T I O N

  23

Additional Information (continued)

 

Fund and Service Providers

 

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Adviser

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

Accounting Agent and Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

The Bank of New York Mellon

New York, NY 10286

Distributor

BlackRock Investments, LLC

New York, NY 10001

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02110.

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

24  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Glossary of Terms Used in these Financial Statements

 

 

Portfolio Abbreviation

NVS

  

  Non-Voting Shares

REIT

  

  Real Estate Investment Trust

 

 

 

G L O S S A R Y  O F  T E R M S  U S E D  I N  T H E S E  FI N A N C I A L  S T A T E M E N T S

   25

 

 

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

 

 

LOGO

   LOGO

 

LOGO

  MAY 31, 2025

 

   2025 Annual Financial Statements and Additional Information

 

BlackRock FundsSM

 

·  

BlackRock U.S. Insights Long/Short Equity Fund

 

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 

Table of Contents

 

      Page  

Derivative Financial Instruments

      3  

Schedule of Investments

      4  

Statement of Assets and Liabilities

      18  

Statement of Operations

      19  

Statements of Changes in Net Assets

      20  

Financial Highlights

      21  

Notes to Financial Statements

      24  

Report of Independent Registered Public Accounting Firm

      34  

Important Tax Information

      35  

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

      36  

Additional Information

      39  

Glossary of Terms Used in these Financial Statements

      41  

 

 

 

2    

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 assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Fund must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Fund’s successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation the Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Fund’s investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

D E R I V A T I V E  F I N A N C I A L  I N S T R U M E N T S

   3

Schedule of Investments

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

(Percentages shown are based on Net Assets)

 

Security  

 

Shares

     Value  

Common Stocks

    
Capital Markets — 0.3%            

Etoro Group Ltd., Class A(a)

        580     $     34,336  
   

 

 

  
Health Care Providers & Services — 0.2%            

Hinge Health, Inc., Class A(a)

    696       27,033  
   

 

 

  
Media — 0.2%            

MNTN, Inc., Class A(a)

    758       19,124  
   

 

 

  

Software — 0.1%

    

SailPoint, Inc.(a)

    463       8,158  
   

 

 

  

Total Long-Term Investments — 0.8%
(Cost: $75,209)

       88,651  
   

 

 

  

 

Security         

Par

(000)

     Value  

Short-Term Securities

      
U.S. Treasury Obligations(b) — 88.9%                  

U.S. Treasury Bills, 4.17%, 11/06/25

     USD       10,710     $  10,514,977  
     

 

 

  

Total Short-Term Securities — 88.9%
(Cost: $10,517,709)

         10,514,977  
     

 

 

  

Total Investments — 89.7%
(Cost: $10,592,918)

         10,603,628  

Other Assets Less Liabilities — 10.3%

 

       1,223,900  
     

 

 

  

Net Assets — 100.0%

       $ 11,827,528  
     

 

 

  

 

(a) 

Non-income producing security.

(b) 

Rates are discount rates or a range of discount rates as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                     
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		            Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		     Shares
Held at
05/31/25		     Income    

Capital

Gain
Distributions
from Underlying
Funds

         
 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

  $  3,806     $   —     $ (3,804 )(b)    $   (2)             $   —     $   —       —     $   22 (c)    $   —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Derivative Financial Instruments Outstanding as of Period End

Equity Swap Contracts

 

                 
Reference Entity   Counterparty       

Notional

Amount

     Termination Date     Spread     Reference Rate     Payment
Frequency		     Value/Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a)

               

AbbVie, Inc.

   HSBC Bank PLC   USD     62,540       02/09/28       0.20 %      1D OBFR01       Monthly     $ 179  

Accenture PLC, Class A

   Goldman Sachs Bank USA       9,373       08/18/26       0.20 %      1D FEDL01       Monthly       (185 ) 

Accenture PLC, Class A

   Merrill Lynch International       53,006       06/15/28       0.20 %      1D OBFR01       Monthly       (1,048 ) 

Alcon AG

   HSBC Bank PLC       96,455       02/09/28       -       1D OBFR01       Monthly       (10,000 ) 

Allegion PLC

   Barclays Bank PLC       17,845       07/14/25       0.20 %      1D OBFR01       Monthly       135  

Allegion PLC

   Goldman Sachs Bank USA       92,463       08/18/26       0.20 %      1D FEDL01       Monthly       (136 ) 

Allegion PLC

   HSBC Bank PLC       146,546       02/09/28       0.20 %      1D OBFR01       Monthly       1,862  

Allegion PLC

   Merrill Lynch International       79,601       06/15/28       0.20 %      1D OBFR01       Monthly       (117 ) 

Allstate Corp. (The)

   Barclays Bank PLC       5,873       07/14/25       0.20 %      1D OBFR01       Monthly       213  

Allstate Corp. (The)

   Merrill Lynch International       112,899       06/15/28       0.20 %      1D OBFR01       Monthly       2,530  

Alphabet, Inc., Class A

   HSBC Bank PLC       23,759       02/09/28       -       1D OBFR01       Monthly       2,689  

Alphabet, Inc., Class A

   Merrill Lynch International       319,066       06/15/28       0.20 %      1D OBFR01       Monthly       15,140  

Amazon.com, Inc.

   Barclays Bank PLC       29,450       07/14/25       0.20 %      1D OBFR01       Monthly       277  

Amazon.com, Inc.

   Goldman Sachs Bank USA       243,332       08/19/26       0.20 %      1D FEDL01       Monthly       (190 ) 

Amazon.com, Inc.

   HSBC Bank PLC       154,132       02/09/28       0.20 %      1D OBFR01       Monthly       (1,604 ) 

Amazon.com, Inc.

   Merrill Lynch International       96,430       06/15/28       0.20 %      1D OBFR01       Monthly       (75 ) 

Ameren Corp.

   Goldman Sachs Bank USA       60,706       08/18/26       0.20 %      1D FEDL01       Monthly       38  

Ameren Corp.

   Merrill Lynch International       2,324       06/15/28       0.20 %      1D OBFR01       Monthly       1  

 

 

4  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

                 
Reference Entity   Counterparty        Notional
Amount		     Termination Date     Spread     Reference Rate     Payment
Frequency		     Value/Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a) (continued)

                

Apple Inc.

   Goldman Sachs Bank USA   USD     11,207       08/18/26       0.20 %      1D FEDL01       Monthly     $ (562 ) 

Apple Inc.

   HSBC Bank PLC       315,984       02/09/28       0.20 %      1D OBFR01       Monthly       5,376  

Aptiv PLC

   Goldman Sachs Bank USA       54,412       08/18/26       0.20 %      1D FEDL01       Monthly       (1,031 ) 

Aptiv PLC

   Merrill Lynch International       33,369       06/15/28       0.20 %      1D OBFR01       Monthly       (632 ) 

ASML Holding NV, Registered Shares

   Barclays Bank PLC       25,184       07/14/25       0.20 %      1D OBFR01       Monthly       (134 ) 

ASML Holding NV, Registered Shares

   Goldman Sachs Bank USA       3,792       08/18/26       0.20 %      1D FEDL01       Monthly       (108 ) 

ASML Holding NV, Registered Shares

   HSBC Bank PLC       56,642       02/09/28       -       1D OBFR01       Monthly       2,299  

Assurant, Inc.

   Merrill Lynch International       59,445       06/15/28       0.20 %      1D OBFR01       Monthly       1,043  

Avantor, Inc.

   Barclays Bank PLC       28,163       07/14/25       0.20 %      1D OBFR01       Monthly       109  

Avantor, Inc.

   Goldman Sachs Bank USA       33,898       08/18/26       0.20 %      1D FEDL01       Monthly       185  

Avantor, Inc.

   HSBC Bank PLC       20,102       02/09/28       0.20 %      1D OBFR01       Monthly       1,031  

Avantor, Inc.

   Merrill Lynch International       1,400       06/15/28       0.20 %      1D OBFR01       Monthly       8  

Bank of America Corp.

   Barclays Bank PLC       2,815       07/14/25       0.20 %      1D OBFR01       Monthly       53  

Bank of America Corp.

   Goldman Sachs Bank USA       67,324       08/18/26       0.20 %      1D FEDL01       Monthly       (379 ) 

Bank of America Corp.

   HSBC Bank PLC       29,162       02/09/28       -       1D OBFR01       Monthly       1,774  

Baxter International, Inc.

   Barclays Bank PLC       35,325       07/14/25       0.20 %      1D OBFR01       Monthly       268  

Baxter International, Inc.

   Goldman Sachs Bank USA       77,259       08/18/26       0.20 %      1D FEDL01       Monthly       (1,344 ) 

Baxter International, Inc.

   Merrill Lynch International       22,194       06/15/28       0.20 %      1D OBFR01       Monthly       (386 ) 

Biogen, Inc.

   HSBC Bank PLC       6,985       02/09/28       0.20 %      1D OBFR01       Monthly       673  

Biogen, Inc.

   Merrill Lynch International       69,272       06/15/28       0.20 %      1D OBFR01       Monthly       3,410  

Blue Owl Capital, Inc., Class A

   Goldman Sachs Bank USA       151,623       08/18/26       0.20 %      1D FEDL01       Monthly       (5,023 ) 

Blue Owl Capital, Inc., Class A

   HSBC Bank PLC       62,943       02/09/28       0.20 %      1D OBFR01       Monthly       475  

Boston Scientific Corp.

   Barclays Bank PLC       38,874       07/14/25       0.20 %      1D OBFR01       Monthly       283  

Boston Scientific Corp.

   Merrill Lynch International       138,310       06/15/28       0.20 %      1D OBFR01       Monthly       528  

BP PLC, ADR

   Barclays Bank PLC       221,536       07/14/25       0.20 %      1D OBFR01       Monthly       1,225  

BP PLC, ADR

   Goldman Sachs Bank USA       3,433       08/18/26       0.20 %      1D FEDL01       Monthly       (115 ) 

BP PLC, ADR

   HSBC Bank PLC       18,412       02/09/28       0.20 %      1D OBFR01       Monthly       328  

BP PLC, ADR

   Merrill Lynch International       28,243       06/15/28       0.20 %      1D OBFR01       Monthly       (947 ) 

Broadcom, Inc.

   Goldman Sachs Bank USA       251,716       08/18/26       0.20 %      1D FEDL01       Monthly       10,203  

Broadcom, Inc.

   HSBC Bank PLC       211,094       02/09/28       0.20 %      1D OBFR01       Monthly       34,849  

Broadcom, Inc.

   Merrill Lynch International       9,306       06/15/28       0.20 %      1D OBFR01       Monthly       377  

Cadence Design Systems, Inc.

   HSBC Bank PLC       170,918       02/09/28       -       1D OBFR01       Monthly       (11,594 ) 

Cadence Design Systems, Inc.

   Merrill Lynch International       133,246       06/15/28       0.20 %      1D OBFR01       Monthly       (13,251 ) 

Camden Property Trust

   Barclays Bank PLC       61,547       07/14/25       0.20 %      1D OBFR01       Monthly       1,662  

Capital One Financial Corp.

   Barclays Bank PLC       104,352       07/14/25       0.20 %      1D OBFR01       Monthly       327  

Capital One Financial Corp.

   HSBC Bank PLC       36,294       02/09/28       -       1D OBFR01       Monthly       142  

Cardinal Health, Inc.

   Barclays Bank PLC       54,591       07/14/25       0.20 %      1D OBFR01       Monthly       698  

Cardinal Health, Inc.

   Goldman Sachs Bank USA       27,322       08/18/26       0.20 %      1D FEDL01       Monthly       323  

Cardinal Health, Inc.

   HSBC Bank PLC       97,787       02/09/28       -       1D OBFR01       Monthly       4,761  

Carlyle Group, Inc. (The)

   Barclays Bank PLC       72,910       07/14/25       0.20 %      1D OBFR01       Monthly       1,264  

Carvana Co., Class A

   Barclays Bank PLC       17,833       07/14/25       0.20 %      1D OBFR01       Monthly       1,470  

Carvana Co., Class A

   HSBC Bank PLC       77,093       02/09/28       0.20 %      1D OBFR01       Monthly       11,240  

Carvana Co., Class A

   Merrill Lynch International       10,706       06/15/28       0.20 %      1D OBFR01       Monthly       1,071  

Cencora, Inc.

   Barclays Bank PLC       190,192       07/14/25       0.20 %      1D OBFR01       Monthly       279  

Cencora, Inc.

   Goldman Sachs Bank USA       36,318       08/18/26       0.20 %      1D FEDL01       Monthly       669  

Charles Schwab Corp. (The)

   Barclays Bank PLC       61,030       07/14/25       0.20 %      1D OBFR01       Monthly       720  

Charles Schwab Corp. (The)

   HSBC Bank PLC       24,130       02/09/28       0.20 %      1D OBFR01       Monthly       1,135  

Charles Schwab Corp. (The)

   Merrill Lynch International       70,840       06/15/28       0.20 %      1D OBFR01       Monthly       185  

Chevron Corp.

   Goldman Sachs Bank USA       11,950       08/18/26       0.20 %      1D FEDL01       Monthly       (467 ) 

Chevron Corp.

   HSBC Bank PLC       94,695       02/09/28       -       1D OBFR01       Monthly       (235 ) 

Chevron Corp.

   Merrill Lynch International       159,616       06/15/28       0.20 %      1D OBFR01       Monthly       (6,238 ) 

Cintas Corp.

   Barclays Bank PLC       77,138       07/14/25       0.20 %      1D OBFR01       Monthly       1,684  

Cisco Systems, Inc.

   Barclays Bank PLC       91,492       07/14/25       0.20 %      1D OBFR01       Monthly       (462 ) 

Cisco Systems, Inc.

   Goldman Sachs Bank USA       6,940       08/18/26       0.20 %      1D FEDL01       Monthly       (132 ) 

Cisco Systems, Inc.

   Merrill Lynch International       22,877       06/15/28       0.20 %      1D OBFR01       Monthly       (434 ) 

Citigroup, Inc.

   HSBC Bank PLC       81,741       02/09/28       -       1D OBFR01       Monthly       4,199  

Citigroup, Inc.

   Merrill Lynch International       139,387       06/15/28       0.20 %      1D OBFR01       Monthly       (1,174 ) 

Citizens Financial Group, Inc.

   Goldman Sachs Bank USA       20,651       08/18/26       0.20 %      1D FEDL01       Monthly       (678 ) 

Citizens Financial Group, Inc.

   HSBC Bank PLC       30,264       02/09/28       0.20 %      1D OBFR01       Monthly       1,048  

Citizens Financial Group, Inc.

   Merrill Lynch International       182,400       06/15/28       0.20 %      1D OBFR01       Monthly       (5,990 ) 

 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   5

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

                 
Reference Entity   Counterparty        Notional
Amount		     Termination Date     Spread     Reference Rate     Payment
Frequency		     Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a) (continued)

                

Coca-Cola Co. (The)

   Barclays Bank PLC   USD     16,718       07/14/25       0.20 %      1D OBFR01       Monthly     $ 226  

Coca-Cola Co. (The)

   HSBC Bank PLC       68,821       02/09/28       0.20 %      1D OBFR01       Monthly       899  

Cognizant Technology Solutions Corp., Class A

   HSBC Bank PLC       61,229       02/09/28       0.20 %      1D OBFR01       Monthly       1,376  

Coherent Corp.

   Goldman Sachs Bank USA       51,233       08/18/26       0.20 %      1D FEDL01       Monthly       (2,074 ) 

Coherent Corp.

   HSBC Bank PLC       4,730       02/09/28       0.20 %      1D OBFR01       Monthly       338  

Coherent Corp.

   Merrill Lynch International       5,281       06/15/28       0.20 %      1D OBFR01       Monthly       (214 ) 

Colgate-Palmolive Co.

   Barclays Bank PLC       17,635       07/14/25       0.20 %      1D OBFR01       Monthly       396  

Colgate-Palmolive Co.

   HSBC Bank PLC       107,724       02/09/28       -       1D OBFR01       Monthly       2,502  

Comcast Corp., Class A

   Barclays Bank PLC       2,940       07/14/25       0.20 %      1D OBFR01       Monthly       (2 ) 

Comcast Corp., Class A

   Goldman Sachs Bank USA       194,315       08/19/26       0.20 %      1D FEDL01       Monthly       (4,180 ) 

Confluent, Inc., Class A

   HSBC Bank PLC       21,903       02/09/28       0.20 %      1D OBFR01       Monthly       2,140  

Confluent, Inc., Class A

   Merrill Lynch International       70,889       06/15/28       0.20 %      1D OBFR01       Monthly       942  

Crown Castle, Inc.

   HSBC Bank PLC       140,151       02/09/28       -       1D OBFR01       Monthly       (3,976 ) 

CVS Health Corp.

   Goldman Sachs Bank USA       123,056       08/18/26       0.20 %      1D FEDL01       Monthly       7,265  

CVS Health Corp.

   HSBC Bank PLC       2,375       02/09/28       0.20 %      1D OBFR01       Monthly       (133 ) 

CVS Health Corp.

   Merrill Lynch International       4,959       06/15/28       0.20 %      1D OBFR01       Monthly       293  

Danaher Corp.

   Barclays Bank PLC       69,180       07/14/25       0.20 %      1D OBFR01       Monthly       893  

Danaher Corp.

   Goldman Sachs Bank USA       95,666       08/18/26       0.20 %      1D FEDL01       Monthly       (526 ) 

Danaher Corp.

   HSBC Bank PLC       13,637       02/09/28       0.20 %      1D OBFR01       Monthly       (344 ) 

Danaher Corp.

   Merrill Lynch International       12,412       06/15/28       0.20 %      1D OBFR01       Monthly       (68 ) 

Devon Energy Corp.

   Barclays Bank PLC       37,804       07/14/25       0.20 %      1D OBFR01       Monthly       (1,068 ) 

Devon Energy Corp.

   Goldman Sachs Bank USA       45,992       08/19/26       0.20 %      1D FEDL01       Monthly       (4,324 ) 

Devon Energy Corp.

   HSBC Bank PLC       34,484       02/09/28       0.20 %      1D OBFR01       Monthly       (1,804 ) 

Devon Energy Corp.

   Merrill Lynch International       54,041       06/15/28       0.20 %      1D OBFR01       Monthly       (5,081 ) 

Dexcom, Inc.

   Merrill Lynch International       60,654       06/15/28       0.20 %      1D OBFR01       Monthly       92  

Dollar General Corp.

   Goldman Sachs Bank USA       54,957       08/18/26       0.20 %      1D FEDL01       Monthly       2,518  

Dominion Energy, Inc.

   Barclays Bank PLC       25,270       07/14/25       0.20 %      1D OBFR01       Monthly       459  

Dominion Energy, Inc.

   Goldman Sachs Bank USA       173,596       08/18/26       0.20 %      1D FEDL01       Monthly       5,141  

DTE Energy Co.

   Barclays Bank PLC       62,464       07/14/25       0.20 %      1D OBFR01       Monthly       942  

Dun & Bradstreet Holdings, Inc.

   Barclays Bank PLC       1,600       07/14/25       0.20 %      1D OBFR01       Monthly       4  

Dun & Bradstreet Holdings, Inc.

   Goldman Sachs Bank USA       25,584       08/19/26       0.20 %      1D FEDL01       Monthly       85  

Dun & Bradstreet Holdings, Inc.

   HSBC Bank PLC       51,578       02/09/28       0.20 %      1D OBFR01       Monthly       230  

Dun & Bradstreet Holdings, Inc.

   Merrill Lynch International       33,424       06/15/28       0.20 %      1D OBFR01       Monthly       112  

Ecolab, Inc.

   Barclays Bank PLC       10,646       07/14/25       0.20 %      1D OBFR01       Monthly       244  

Ecolab, Inc.

   Goldman Sachs Bank USA       79,332       08/18/26       0.20 %      1D FEDL01       Monthly       3,010  

Edwards Lifesciences Corp.

   Barclays Bank PLC       217,340       07/14/25       0.20 %      1D OBFR01       Monthly       9,968  

Elevance Health, Inc.

   Barclays Bank PLC       3,845       07/14/25       0.20 %      1D OBFR01       Monthly       (7 ) 

Elevance Health, Inc.

   HSBC Bank PLC       2,474       02/09/28       0.20 %      1D OBFR01       Monthly       (171 ) 

Elevance Health, Inc.

   Merrill Lynch International       54,990       06/15/28       0.20 %      1D OBFR01       Monthly       (869 ) 

Entegris, Inc.

   Barclays Bank PLC       32,707       07/14/25       0.20 %      1D OBFR01       Monthly       (1,980 ) 

Entegris, Inc.

   Goldman Sachs Bank USA       12,722       08/18/26       0.20 %      1D FEDL01       Monthly       (1,586 ) 

Entegris, Inc.

   HSBC Bank PLC       12,410       02/09/28       0.20 %      1D OBFR01       Monthly       (1,343 ) 

Entegris, Inc.

   Merrill Lynch International       4,496       06/15/28       0.20 %      1D OBFR01       Monthly       (372 ) 

Entergy Corp.

   Barclays Bank PLC       180,604       07/14/25       0.20 %      1D OBFR01       Monthly       4,444  

Entergy Corp.

   Merrill Lynch International       5,809       06/15/28       0.20 %      1D OBFR01       Monthly       104  

EOG Resources, Inc.

   Barclays Bank PLC       19,942       07/14/25       0.20 %      1D OBFR01       Monthly       (400 ) 

EOG Resources, Inc.

   HSBC Bank PLC       13,933       02/09/28       0.20 %      1D OBFR01       Monthly       (145 ) 

EOG Resources, Inc.

   Merrill Lynch International       51,210       06/15/28       0.20 %      1D OBFR01       Monthly       (3,222 ) 

EQT Corp.

   Merrill Lynch International       61,088       06/15/28       0.20 %      1D OBFR01       Monthly       (1,547 ) 

Equinix, Inc.

   Barclays Bank PLC       3,466       07/14/25       0.20 %      1D OBFR01       Monthly       89  

Equinix, Inc.

   Goldman Sachs Bank USA       57,238       08/18/26       0.20 %      1D FEDL01       Monthly       1,424  

Equinix, Inc.

   Merrill Lynch International       36,424       06/15/28       0.20 %      1D OBFR01       Monthly       906  

Evergy, Inc.

   Barclays Bank PLC       22,916       07/14/25       0.20 %      1D OBFR01       Monthly       61  

Evergy, Inc.

   Merrill Lynch International       60,142       06/15/28       0.20 %      1D OBFR01       Monthly       (638 ) 

Exelon Corp.

   Merrill Lynch International       58,891       06/15/28       0.20 %      1D OBFR01       Monthly       529  

Fidelity National Financial, Inc., Class A

   Barclays Bank PLC       103,379       07/14/25       0.20 %      1D OBFR01       Monthly       2,217  

Fidelity National Financial, Inc., Class A

   Goldman Sachs Bank USA       29,596       08/19/26       0.20 %      1D FEDL01       Monthly       (1,444 ) 

Fidelity National Financial, Inc., Class A

   HSBC Bank PLC       129,636       02/09/28       -       1D OBFR01       Monthly       (10,785 ) 

Flutter Entertainment PLC

   Barclays Bank PLC       17,148       07/14/25       0.20 %      1D OBFR01       Monthly       1,046  

Flutter Entertainment PLC

   Goldman Sachs Bank USA       31,733       08/18/26       0.20 %      1D FEDL01       Monthly       1,118  

 

 

 

6  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity   Counterparty   Notional
Amount		     Termination Date     Spread     Reference Rate     Payment
Frequency		     Value/Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a) (continued)

              

Flutter Entertainment PLC

   HSBC Bank PLC     USD 36,839       02/09/28       0.20 %      1D OBFR01       Monthly     $ 1,572  

Flutter Entertainment PLC

   Merrill Lynch International     77,380       06/15/28       0.20 %      1D OBFR01       Monthly       2,726  

Fortrea Holdings, Inc.

   Barclays Bank PLC     28,086       07/14/25       0.20 %      1D OBFR01       Monthly       397  

Fortrea Holdings, Inc.

   Goldman Sachs Bank USA     11,310       08/18/26       0.20 %      1D FEDL01       Monthly       (1,071 ) 

Fortrea Holdings, Inc.

   HSBC Bank PLC     18,624       02/09/28       0.20 %      1D OBFR01       Monthly       (5,165 ) 

Fortrea Holdings, Inc.

   Merrill Lynch International     12,168       06/15/28       0.20 %      1D OBFR01       Monthly       (798 ) 

Fox Corp., Class A, NVS

   Barclays Bank PLC     60,038       07/14/25       0.20 %      1D OBFR01       Monthly       (44 ) 

Fox Corp., Class A, NVS

   HSBC Bank PLC     2,723       02/09/28       0.20 %      1D OBFR01       Monthly       244  

Fox Corp., Class A, NVS

   Merrill Lynch International     2,884       06/15/28       0.20 %      1D OBFR01       Monthly       (27 ) 

Franklin Resources, Inc.

   Merrill Lynch International     60,951       06/15/28       0.20 %      1D OBFR01       Monthly       (1,484 ) 

General Motors Co.

   Barclays Bank PLC     49,724       07/14/25       0.20 %      1D OBFR01       Monthly       333  

General Motors Co.

   HSBC Bank PLC     43,562       02/09/28       0.20 %      1D OBFR01       Monthly       2,079  

General Motors Co.

   Merrill Lynch International     2,105       06/15/28       0.20 %      1D OBFR01       Monthly       (21 ) 

Gitlab, Inc., Class A

   Barclays Bank PLC     6,210       07/14/25       0.20 %      1D OBFR01       Monthly       (294 ) 

Gitlab, Inc., Class A

   Goldman Sachs Bank USA     6,891       08/18/26       0.20 %      1D FEDL01       Monthly       (838 ) 

Gitlab, Inc., Class A

   HSBC Bank PLC     44,428       02/09/28       0.20 %      1D OBFR01       Monthly       (3,606 ) 

Gitlab, Inc., Class A

   Merrill Lynch International     13,108       06/15/28       0.20 %      1D OBFR01       Monthly       (1,594 ) 

Hasbro, Inc.

   Merrill Lynch International     96,116       06/15/28       0.20 %      1D OBFR01       Monthly       347  

Hess Corp.

   Barclays Bank PLC     286,434       07/14/25       0.20 %      1D OBFR01       Monthly       4,780  

Hess Corp.

   Goldman Sachs Bank USA     18,370       08/18/26       0.20 %      1D FEDL01       Monthly       (392 ) 

Hilton Worldwide Holdings, Inc.

   Barclays Bank PLC     60,744       07/14/25       0.20 %      1D OBFR01       Monthly       372  

Home Depot, Inc. (The)

   Barclays Bank PLC     11,350       07/14/25       0.20 %      1D OBFR01       Monthly       67  

Home Depot, Inc. (The)

   Goldman Sachs Bank USA     22,718       08/18/26       0.20 %      1D FEDL01       Monthly       (620 ) 

Home Depot, Inc. (The)

   HSBC Bank PLC     11,311       02/09/28       -       1D OBFR01       Monthly       106  

Home Depot, Inc. (The)

   Merrill Lynch International     89,735       06/15/28       0.20 %      1D OBFR01       Monthly       (2,451 ) 

Hubbell, Inc.

   Barclays Bank PLC     1,947       07/14/25       0.20 %      1D OBFR01       Monthly       1  

Hubbell, Inc.

   Goldman Sachs Bank USA     3,480       08/18/26       0.20 %      1D FEDL01       Monthly       26  

Hubbell, Inc.

   HSBC Bank PLC     53,895       02/09/28       0.20 %      1D OBFR01       Monthly       5,321  

Hubbell, Inc.

   Merrill Lynch International     68,435       06/15/28       0.20 %      1D OBFR01       Monthly       520  

Huntington Bancshares, Inc.

   Barclays Bank PLC     62,476       07/14/25       0.20 %      1D OBFR01       Monthly       810  

Huntington Bancshares, Inc.

   Merrill Lynch International     3,784       06/15/28       0.20 %      1D OBFR01       Monthly       (110 ) 

ICON PLC

   Barclays Bank PLC     48,764       07/14/25       0.20 %      1D OBFR01       Monthly       1,263  

ICON PLC

   Goldman Sachs Bank USA     7,713       08/18/26       0.20 %      1D FEDL01       Monthly       (26 ) 

ICON PLC

   HSBC Bank PLC     2,107       02/09/28       0.20 %      1D OBFR01       Monthly       (153 ) 

ICON PLC

   Merrill Lynch International     1,568       06/15/28       0.20 %      1D OBFR01       Monthly       (5 ) 

Intercontinental Exchange, Inc.

   Goldman Sachs Bank USA     71,514       08/18/26       0.20 %      1D FEDL01       Monthly       2,025  

Intercontinental Exchange, Inc.

   Merrill Lynch International     4,721       06/15/28       0.20 %      1D OBFR01       Monthly       134  

International Flavors & Fragrances, Inc.

   Goldman Sachs Bank USA     64,558       08/18/26       0.20 %      1D FEDL01       Monthly       365  

Intuit, Inc.

   Barclays Bank PLC     57,282       07/14/25       0.20 %      1D OBFR01       Monthly       7,516  

Intuit, Inc.

   HSBC Bank PLC     5,905       02/09/28       0.20 %      1D OBFR01       Monthly       876  

Intuitive Surgical, Inc.

   Barclays Bank PLC     4,884       07/14/25       0.20 %      1D OBFR01       Monthly       87  

Intuitive Surgical, Inc.

   Merrill Lynch International     64,992       06/15/28       0.20 %      1D OBFR01       Monthly       (921 ) 

Invesco Ltd.

   Merrill Lynch International     70,457       06/15/28       0.20 %      1D OBFR01       Monthly       (3,955 ) 

Johnson Controls International PLC

   Barclays Bank PLC     69,960       07/14/25       0.20 %      1D OBFR01       Monthly       2,317  

Johnson Controls International PLC

   HSBC Bank PLC     5,292       02/09/28       0.20 %      1D OBFR01       Monthly       588  

Johnson Controls International PLC

   Merrill Lynch International     21,681       06/15/28       0.20 %      1D OBFR01       Monthly       1,026  

Jones Lang LaSalle, Inc.

   Goldman Sachs Bank USA     4,004       08/18/26       0.20 %      1D FEDL01       Monthly       (218 ) 

Jones Lang LaSalle, Inc.

   Merrill Lynch International     59,827       06/15/28       0.20 %      1D OBFR01       Monthly       (3,261 ) 

Keurig Dr Pepper, Inc.

   Barclays Bank PLC     49,713       07/14/25       0.20 %      1D OBFR01       Monthly       994  

Keurig Dr Pepper, Inc.

   Merrill Lynch International     66,275       06/15/28       0.20 %      1D OBFR01       Monthly       257  

Keysight Technologies, Inc.

   Barclays Bank PLC     65,828       07/14/25       0.20 %      1D OBFR01       Monthly       (1,913 ) 

Keysight Technologies, Inc.

   Goldman Sachs Bank USA     32,132       08/18/26       0.20 %      1D FEDL01       Monthly       (1,509 ) 

Keysight Technologies, Inc.

   HSBC Bank PLC     79,469       02/09/28       0.20 %      1D OBFR01       Monthly       2,506  

L3Harris Technologies, Inc.

   Merrill Lynch International     61,706       06/15/28       0.20 %      1D OBFR01       Monthly       4,755  

M&T Bank Corp.

   Barclays Bank PLC     16,074       07/14/25       0.20 %      1D OBFR01       Monthly       181  

M&T Bank Corp.

   HSBC Bank PLC     43,759       02/09/28       0.20 %      1D OBFR01       Monthly       1,171  

Marvell Technology, Inc.

   Goldman Sachs Bank USA     95,062       08/18/26       0.20 %      1D FEDL01       Monthly       (7,305 ) 

Marvell Technology, Inc.

   HSBC Bank PLC     35,154       02/09/28       0.20 %      1D OBFR01       Monthly       1,562  

Marvell Technology, Inc.

   Merrill Lynch International     49,943       06/15/28       0.20 %      1D OBFR01       Monthly       (3,838 ) 

Mastercard, Inc., Class A

   Barclays Bank PLC     59,865       07/14/25       0.20 %      1D OBFR01       Monthly       1,623  

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   7

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

                 
Reference Entity   Counterparty            Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a) (continued)

                      

Mastercard, Inc., Class A

   Goldman Sachs Bank USA      USD        5,822        08/18/26        0.20 %      1D FEDL01        Monthly      $ 34  

McKesson Corp.

   Barclays Bank PLC         8,528        07/14/25        0.20 %      1D OBFR01        Monthly        106  

McKesson Corp.

   Goldman Sachs Bank USA         67,142        08/18/26        0.20 %      1D FEDL01        Monthly        1,211  

McKesson Corp.

   HSBC Bank PLC         11,044        02/09/28        0.20 %      1D OBFR01        Monthly        468  

McKesson Corp.

   Merrill Lynch International         21,203        06/15/28        0.20 %      1D OBFR01        Monthly        382  

Medtronic PLC

   Barclays Bank PLC         57,689        07/14/25        0.20 %      1D OBFR01        Monthly        1,476  

Medtronic PLC

   Merrill Lynch International         11,969        06/15/28        0.20 %      1D OBFR01        Monthly        (435 ) 

Meta Platforms, Inc., Class A

   Barclays Bank PLC         19,734        07/14/25        0.20 %      1D OBFR01        Monthly        339  

Meta Platforms, Inc., Class A

   Goldman Sachs Bank USA         95,938        08/18/26        0.20 %      1D FEDL01        Monthly        538  

Meta Platforms, Inc., Class A

   HSBC Bank PLC         87,510        02/09/28        0.20 %      1D OBFR01        Monthly        5,082  

Microsoft Corp.

   Barclays Bank PLC         115,080        07/14/25        0.20 %      1D OBFR01        Monthly        1,391  

Microsoft Corp.

   Goldman Sachs Bank USA         498,443        08/18/26        0.20 %      1D FEDL01        Monthly        7,953  

Microsoft Corp.

   Merrill Lynch International         151,799        06/15/28        0.20 %      1D OBFR01        Monthly        2,422  

MongoDB, Inc., Class A

   Barclays Bank PLC         41,676        07/14/25        0.20 %      1D OBFR01        Monthly        55  

MongoDB, Inc., Class A

   Goldman Sachs Bank USA         46,101        08/18/26        0.20 %      1D FEDL01        Monthly        (404 ) 

MongoDB, Inc., Class A

   HSBC Bank PLC         35,673        02/09/28        0.20 %      1D OBFR01        Monthly        1,904  

MongoDB, Inc., Class A

   Merrill Lynch International         30,480        06/15/28        0.20 %      1D OBFR01        Monthly        (267 ) 

Morgan Stanley

   Barclays Bank PLC         60,100        07/14/25        0.20 %      1D OBFR01        Monthly        842  

Motorola Solutions, Inc.

   Goldman Sachs Bank USA         47,665        08/18/26        0.20 %      1D FEDL01        Monthly        (1,142 ) 

Motorola Solutions, Inc.

   Merrill Lynch International         11,916        06/15/28        0.20 %      1D OBFR01        Monthly        (286 ) 

Nasdaq, Inc.

   Goldman Sachs Bank USA         21,864        08/18/26        0.20 %      1D FEDL01        Monthly        608  

Nasdaq, Inc.

   Merrill Lynch International         42,428        06/15/28        0.20 %      1D OBFR01        Monthly        1,180  

Natera, Inc.

   Barclays Bank PLC         8,844        07/14/25        0.20 %      1D OBFR01        Monthly        304  

Natera, Inc.

   HSBC Bank PLC         7,641        02/09/28        0.20 %      1D OBFR01        Monthly        (227 ) 

Natera, Inc.

   Merrill Lynch International         62,150        06/15/28        0.20 %      1D OBFR01        Monthly        3,465  

Netflix, Inc.

   Barclays Bank PLC         104,541        07/14/25        0.20 %      1D OBFR01        Monthly        1,695  

Netflix, Inc.

   Goldman Sachs Bank USA         35,136        08/18/26        0.20 %      1D FEDL01        Monthly        (126 ) 

NextEra Energy, Inc.

   Barclays Bank PLC         55,828        07/14/25        0.20 %      1D OBFR01        Monthly        3,086  

NextEra Energy, Inc.

   HSBC Bank PLC         2,323        02/09/28        0.20 %      1D OBFR01        Monthly        79  

NextEra Energy, Inc.

   Merrill Lynch International         3,728        06/15/28        0.20 %      1D OBFR01        Monthly        (196 ) 

Nice Ltd., ADR

   HSBC Bank PLC         64,198        02/09/28        -       1D OBFR01        Monthly        847  

Nice Ltd., ADR

   Merrill Lynch International         18,528        06/15/28        0.20 %      1D OBFR01        Monthly        554  

NVIDIA Corp.

   Barclays Bank PLC         387,465        07/14/25        0.20 %      1D OBFR01        Monthly        6,709  

NVIDIA Corp.

   Goldman Sachs Bank USA         29,797        08/18/26        0.20 %      1D FEDL01        Monthly        66  

Old Dominion Freight Line, Inc.

   Barclays Bank PLC         100,146        07/14/25        0.20 %      1D OBFR01        Monthly        (2,122 ) 

Old Dominion Freight Line, Inc.

   HSBC Bank PLC         11,208        02/09/28        -       1D OBFR01        Monthly        3  

Parker-Hannifin Corp.

   HSBC Bank PLC         132,791        02/09/28        0.20 %      1D OBFR01        Monthly        4,802  

PG&E Corp.

   Barclays Bank PLC         10,212        07/14/25        0.20 %      1D OBFR01        Monthly        (84 ) 

PG&E Corp.

   HSBC Bank PLC         52,279        02/09/28        -       1D OBFR01        Monthly        (913 ) 

Planet Fitness, Inc., Class A

   Goldman Sachs Bank USA         55,751        08/18/26        0.20 %      1D FEDL01        Monthly        2,760  

PNC Financial Services Group, Inc. (The)

   Goldman Sachs Bank USA         60,478        08/18/26        0.20 %      1D FEDL01        Monthly        (1,904 ) 

PNC Financial Services Group, Inc. (The)

   Merrill Lynch International         718        06/15/28        0.20 %      1D OBFR01        Monthly        (23 ) 

PPG Industries, Inc.

   Barclays Bank PLC         103,203        07/14/25        0.20 %      1D OBFR01        Monthly        (380 ) 

Prologis, Inc.

   Barclays Bank PLC         56,328        07/14/25        0.20 %      1D OBFR01        Monthly        1,881  

Prologis, Inc.

   Merrill Lynch International         2,622        06/15/28        0.20 %      1D OBFR01        Monthly        (15 ) 

Public Service Enterprise Group, Inc.

   Merrill Lynch International         59,693        06/15/28        0.20 %      1D OBFR01        Monthly        1,971  

Ralph Lauren Corp., Class A

   Barclays Bank PLC         85,168        07/14/25        0.20 %      1D OBFR01        Monthly        (187 ) 

Reinsurance Group of America, Inc.

   Goldman Sachs Bank USA         2,657        08/18/26        0.20 %      1D FEDL01        Monthly        (14 ) 

Reinsurance Group of America, Inc.

   HSBC Bank PLC         44,049        02/09/28        -       1D OBFR01        Monthly        268  

Reinsurance Group of America, Inc.

   Merrill Lynch International         14,551        06/15/28        0.20 %      1D OBFR01        Monthly        (117 ) 

Robert Half, Inc.

   Barclays Bank PLC         2,047        07/14/25        0.20 %      1D OBFR01        Monthly        (32 ) 

Robert Half, Inc.

   Goldman Sachs Bank USA         34,732        08/18/26        0.20 %      1D FEDL01        Monthly        (1,030 ) 

Robert Half, Inc.

   HSBC Bank PLC         6,029        02/09/28        0.20 %      1D OBFR01        Monthly        61  

Robert Half, Inc.

   Merrill Lynch International         19,442        06/15/28        0.20 %      1D OBFR01        Monthly        (577 ) 

Rollins, Inc.

   Goldman Sachs Bank USA         7,046        08/18/26        0.20 %      1D FEDL01        Monthly        110  

Rollins, Inc.

   Merrill Lynch International         74,014        06/15/28        0.20 %      1D OBFR01        Monthly        1,155  

RTX Corp.

   Barclays Bank PLC         28,691        07/14/25        0.20 %      1D OBFR01        Monthly        516  

RTX Corp.

   Goldman Sachs Bank USA         14,907        08/18/26        0.20 %      1D FEDL01        Monthly        106  

RTX Corp.

   HSBC Bank PLC         75,401        02/09/28        0.20 %      1D OBFR01        Monthly        4,577  

S&P Global, Inc.

   HSBC Bank PLC         15,736        02/09/28        0.20 %      1D OBFR01        Monthly        163  

 

 

8  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

                 
Reference Entity   Counterparty            Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a) (continued)

                      

S&P Global, Inc.

   Merrill Lynch International      USD        126,704        06/15/28        0.20 %      1D OBFR01        Monthly      $ (1,567 ) 

Saia, Inc.

   Goldman Sachs Bank USA         5,225        08/18/26        0.20 %      1D FEDL01        Monthly        (201 ) 

Saia, Inc.

   HSBC Bank PLC         59,576        02/09/28        0.20 %      1D OBFR01        Monthly        (4,314 ) 

Salesforce, Inc.

   Goldman Sachs Bank USA         11,340        08/18/26        0.20 %      1D FEDL01        Monthly        (990 ) 

Salesforce, Inc.

   Merrill Lynch International         86,646        06/15/28        0.20 %      1D OBFR01        Monthly        (7,566 ) 

Sanofi SA, ADR

   Barclays Bank PLC         101,344        07/14/25        0.20 %      1D OBFR01        Monthly        (6,060 ) 

Sanofi SA, ADR

   Goldman Sachs Bank USA         16,580        08/18/26        0.20 %      1D FEDL01        Monthly        (486 ) 

Sanofi SA, ADR

   Merrill Lynch International         50,402        06/15/28        0.20 %      1D OBFR01        Monthly        (1,477 ) 

Sempra

   Barclays Bank PLC         43,134        07/14/25        0.20 %      1D OBFR01        Monthly        1,034  

Sempra

   Goldman Sachs Bank USA         4,206        08/18/26        0.20 %      1D FEDL01        Monthly        117  

Sempra

   HSBC Bank PLC         11,214        02/09/28        -       1D OBFR01        Monthly        417  

Sempra

   Merrill Lynch International         34,259        06/15/28        0.20 %      1D OBFR01        Monthly        950  

Shell PLC, ADR

   Barclays Bank PLC         50,320        07/14/25        0.20 %      1D OBFR01        Monthly        206  

Shell PLC, ADR

   Goldman Sachs Bank USA         152,032        08/19/26        0.20 %      1D FEDL01        Monthly        (2,640 ) 

Shell PLC, ADR

   Merrill Lynch International         21,902        06/15/28        0.20 %      1D OBFR01        Monthly        (380 ) 

Snowflake, Inc., Class A

   Goldman Sachs Bank USA         141,770        08/18/26        0.20 %      1D FEDL01        Monthly        7,546  

Spotify Technology SA

   Barclays Bank PLC         60,766        07/14/25        0.20 %      1D OBFR01        Monthly        1,092  

SS&C Technologies Holdings, Inc.

   HSBC Bank PLC         76,777        02/09/28        0.20 %      1D OBFR01        Monthly        3,063  

SS&C Technologies Holdings, Inc.

   Merrill Lynch International         5,327        06/15/28        0.20 %      1D OBFR01        Monthly        87  

STAG Industrial, Inc.

   Barclays Bank PLC         13,605        07/14/25        0.20 %      1D OBFR01        Monthly        520  

STAG Industrial, Inc.

   Goldman Sachs Bank USA         99,344        08/18/26        0.20 %      1D FEDL01        Monthly        280  

STAG Industrial, Inc.

   HSBC Bank PLC         27,765        02/09/28        0.20 %      1D OBFR01        Monthly        1,410  

Stanley Black & Decker, Inc.

   Barclays Bank PLC         54,200        07/14/25        0.20 %      1D OBFR01        Monthly        (743 ) 

Stanley Black & Decker, Inc.

   Goldman Sachs Bank USA         3,461        08/18/26        0.20 %      1D FEDL01        Monthly        (254 ) 

Stanley Black & Decker, Inc.

   HSBC Bank PLC         3,429        02/09/28        0.20 %      1D OBFR01        Monthly        (92 ) 

STERIS PLC

   Goldman Sachs Bank USA         67,151        08/18/26        0.20 %      1D FEDL01        Monthly        (454 ) 

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

   Barclays Bank PLC         2,943        07/14/25        0.20 %      1D OBFR01        Monthly        (43 ) 

Taiwan Semiconductor Manufacturing Co. Ltd., ADR

   Merrill Lynch International         83,709        06/15/28        0.20 %      1D OBFR01        Monthly        (388 ) 

Targa Resources Corp.

   Barclays Bank PLC         2,705        07/14/25        0.20 %      1D OBFR01        Monthly        (20 ) 

Targa Resources Corp.

   Goldman Sachs Bank USA         55,095        08/18/26        0.20 %      1D FEDL01        Monthly        (2,820 ) 

Targa Resources Corp.

   HSBC Bank PLC         2,561        02/09/28        0.20 %      1D OBFR01        Monthly        (34 ) 

TechnipFMC PLC

   HSBC Bank PLC         65,251        02/09/28        -       1D OBFR01        Monthly        3,186  

Thermo Fisher Scientific, Inc.

   Barclays Bank PLC         69,283        07/14/25        0.20 %      1D OBFR01        Monthly        405  

Thermo Fisher Scientific, Inc.

   HSBC Bank PLC         163,901        02/09/28        -       1D OBFR01        Monthly        (3,176 ) 

Thermo Fisher Scientific, Inc.

   Merrill Lynch International         3,239        06/15/28        0.20 %      1D OBFR01        Monthly        (17 ) 

TotalEnergies SE, ADR

   HSBC Bank PLC         61,289        02/09/28        0.20 %      1D OBFR01        Monthly        (1,259 ) 

TPG, Inc., Class A

   Goldman Sachs Bank USA         2,513        08/18/26        0.20 %      1D FEDL01        Monthly        (155 ) 

TPG, Inc., Class A

   HSBC Bank PLC         9,167        02/09/28        0.20 %      1D OBFR01        Monthly        (118 ) 

TPG, Inc., Class A

   Merrill Lynch International         52,956        06/15/28        0.20 %      1D OBFR01        Monthly        (2,853 ) 

Tradeweb Markets, Inc., Class A

   Goldman Sachs Bank USA         137,330        08/18/26        0.20 %      1D FEDL01        Monthly        909  

Tradeweb Markets, Inc., Class A

   HSBC Bank PLC         19,609        02/09/28        0.20 %      1D OBFR01        Monthly        (108 ) 

Tradeweb Markets, Inc., Class A

   Merrill Lynch International         75,051        06/15/28        0.20 %      1D OBFR01        Monthly        497  

TransDigm Group, Inc.

   Goldman Sachs Bank USA         59,036        08/18/26        0.20 %      1D FEDL01        Monthly        2,638  

TransDigm Group, Inc.

   HSBC Bank PLC         12,465        02/09/28        -       1D OBFR01        Monthly        751  

United Rentals, Inc.

   Barclays Bank PLC         14,073        07/14/25        0.20 %      1D OBFR01        Monthly        94  

United Rentals, Inc.

   HSBC Bank PLC         62,310        02/09/28        -       1D OBFR01        Monthly        3,569  

United Rentals, Inc.

   Merrill Lynch International         18,546        06/15/28        0.20 %      1D OBFR01        Monthly        (128 ) 

UWM Holdings Corp., Class A

   Merrill Lynch International         74,350        06/15/28        0.20 %      1D OBFR01        Monthly        2,873  

Veeva Systems, Inc., Class A

   Goldman Sachs Bank USA         21,744        08/18/26        0.20 %      1D FEDL01        Monthly        3,429  

Veeva Systems, Inc., Class A

   Merrill Lynch International         40,347        06/15/28        0.20 %      1D OBFR01        Monthly        6,363  

Verisk Analytics, Inc.

   Barclays Bank PLC         66,326        07/14/25        0.20 %      1D OBFR01        Monthly        (42 ) 

Verizon Communications, Inc.

   Barclays Bank PLC         90,400        07/14/25        0.20 %      1D OBFR01        Monthly        1,740  

Verizon Communications, Inc.

   Goldman Sachs Bank USA         31,219        08/18/26        0.20 %      1D FEDL01        Monthly        345  

Vertiv Holdings Co., Class A

   Barclays Bank PLC         21,361        07/14/25        0.20 %      1D OBFR01        Monthly        765  

Vertiv Holdings Co., Class A

   HSBC Bank PLC         4,117        02/09/28        0.20 %      1D OBFR01        Monthly        524  

Vertiv Holdings Co., Class A

   Merrill Lynch International         117,709        06/15/28        0.20 %      1D OBFR01        Monthly        2,848  

Visa, Inc., Class A

   Barclays Bank PLC         105,243        07/14/25        0.20 %      1D OBFR01        Monthly        2,123  

Voya Financial, Inc.

   Barclays Bank PLC         85,298        07/14/25        0.20 %      1D OBFR01        Monthly        (352 ) 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   9

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity    Counterparty    Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Long Contracts(a) (continued)

                    

Voya Financial, Inc.

    Goldman Sachs Bank USA      USD 14,011        08/18/26        0.20 %      1D FEDL01        Monthly      $ (508 ) 

Walmart, Inc.

    HSBC Bank PLC      28,547        02/09/28        0.20 %      1D OBFR01        Monthly        378  

Walmart, Inc.

    Merrill Lynch International      81,705        06/15/28        0.20 %      1D OBFR01        Monthly        2,010  

Waste Connections, Inc.

    Barclays Bank PLC      20,271        07/14/25        0.20 %      1D OBFR01        Monthly        227  

Waste Connections, Inc.

    Merrill Lynch International      125,276        06/15/28        0.20 %      1D OBFR01        Monthly        4,015  

Waters Corp.

    Barclays Bank PLC      7,318        07/14/25        0.20 %      1D OBFR01        Monthly        16  

Waters Corp.

    Goldman Sachs Bank USA      5,274        08/18/26        0.20 %      1D FEDL01        Monthly        (35 ) 

Waters Corp.

    Merrill Lynch International      52,037        06/15/28        0.20 %      1D OBFR01        Monthly        (349 ) 

WESCO International, Inc.

    Barclays Bank PLC      69,819        07/14/25        0.20 %      1D OBFR01        Monthly        863  

WESCO International, Inc.

    HSBC Bank PLC      126,147        02/09/28        0.20 %      1D OBFR01        Monthly        3,968  

WillScot Holdings Corp., Class A

    Barclays Bank PLC      51,082        07/14/25        0.20 %      1D OBFR01        Monthly        (821 ) 

WillScot Holdings Corp., Class A

    Goldman Sachs Bank USA      4,996        08/18/26        0.20 %      1D FEDL01        Monthly        (441 ) 

WillScot Holdings Corp., Class A

    Merrill Lynch International      71,269        06/15/28        0.20 %      1D OBFR01        Monthly        (6,293 ) 

Wingstop, Inc.

    HSBC Bank PLC      62,730        02/09/28        0.20 %      1D OBFR01        Monthly        1,509  

Zoetis, Inc., Class A

    Barclays Bank PLC      42,760        07/14/25        0.20 %      1D OBFR01        Monthly        1,758  

Zoetis, Inc., Class A

    HSBC Bank PLC      17,301        02/09/28        0.20 %      1D OBFR01        Monthly        743  
                   

 

 

  

Total long positions of equity swaps

                       135,577  
                   

 

 

  

Short Contracts(b)

                   

AAON, Inc.

    Barclays Bank PLC      (67,460 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        2,464  

AAON, Inc.

    Goldman Sachs Bank USA      (3,852 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        289  

AES Corp. (The)

    Barclays Bank PLC      (83,319 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (3,980 ) 

AES Corp. (The)

    Goldman Sachs Bank USA      (620 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        116  

Airbnb, Inc., Class A

    Goldman Sachs Bank USA      (20,245 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,153  

Airbnb, Inc., Class A

    HSBC Bank PLC      (42,593 )       02/09/28        -       1D OBFR01        Monthly        (880 ) 

Airbnb, Inc., Class A

    Merrill Lynch International      (5,608 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        319  

Akamai Technologies, Inc.

    Barclays Bank PLC      (2,103 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        53  

Akamai Technologies, Inc.

    HSBC Bank PLC      (62,200 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        6,923  

Akamai Technologies, Inc.

    Merrill Lynch International      (2,831 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        21  

Allegro MicroSystems, Inc.

    HSBC Bank PLC      (61,639 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        1,788  

Ally Financial, Inc.

    Barclays Bank PLC      (2,036 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (64 ) 

Ally Financial, Inc.

    HSBC Bank PLC      (6,265 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (281 ) 

Ally Financial, Inc.

    Merrill Lynch International      (55,019 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,154  

Altria Group, Inc.

    Barclays Bank PLC      (51,295 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,133 ) 

Altria Group, Inc.

    HSBC Bank PLC      (44,616 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (2,539 ) 

American Express Co.

    Barclays Bank PLC      (18,954 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (453 ) 

American Express Co.

    HSBC Bank PLC      (43,967 )       02/09/28        -       1D OBFR01        Monthly        (1,610 ) 

Amgen, Inc.

    Goldman Sachs Bank USA      (80,547 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (3,601 ) 

Amphenol Corp., Class A

    Goldman Sachs Bank USA      (2,650 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (48 ) 

Amphenol Corp., Class A

    HSBC Bank PLC      (60,140 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (2,452 ) 

Antero Resources Corp.

    Goldman Sachs Bank USA      (65,454 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        4,523  

Antero Resources Corp.

    Merrill Lynch International      (2,575 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        178  

Ares Management Corp., Class A

    Barclays Bank PLC      (41,249 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,450 ) 

Ares Management Corp., Class A

    Merrill Lynch International      (72,541 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,376  

Arthur J Gallagher & Co.

    Goldman Sachs Bank USA      (60,552 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (1,640 ) 

Asana, Inc., Class A

    Goldman Sachs Bank USA      (18,468 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        164  

Asana, Inc., Class A

    Merrill Lynch International      (43,982 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        389  

Astera Labs, Inc.

    Barclays Bank PLC      (50,828 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        1,930  

Astera Labs, Inc.

    Merrill Lynch International      (17,977 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        287  

AT&T Inc.

    Barclays Bank PLC      (23,881 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (500 ) 

AT&T Inc.

    HSBC Bank PLC      (1,209 )       02/09/28        -       1D OBFR01        Monthly        (15 ) 

AT&T Inc.

    Merrill Lynch International      (58,158 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (1,000 ) 

Becton Dickinson & Co.

    Barclays Bank PLC      (3,963 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (6 ) 

Becton Dickinson & Co.

    HSBC Bank PLC      (11,421 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (316 ) 

Becton Dickinson & Co.

    Merrill Lynch International      (45,652 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (85 ) 

Berkshire Hathaway, Inc., Class B

    Barclays Bank PLC      (9,568 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (7 ) 

Berkshire Hathaway, Inc., Class B

    HSBC Bank PLC      (79,041 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        1,431  

Berkshire Hathaway, Inc., Class B

    Merrill Lynch International      (8,117 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        54  

Bio-Rad Laboratories, Inc., Class A

    Barclays Bank PLC      (47,245 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        44  

Bio-Rad Laboratories, Inc., Class A

    Goldman Sachs Bank USA      (3,405 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        228  

 

 

10  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity    Counterparty    Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Short Contracts(b) (continued)

                    

Bio-Rad Laboratories, Inc., Class A

    HSBC Bank PLC      USD (4,338 )       02/09/28        (0.15 )%      1D OBFR01        Monthly      $ 254  

Bio-Rad Laboratories, Inc., Class A

    Merrill Lynch International      (5,350 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        358  

Bio-Techne Corp.

    Barclays Bank PLC      (46,137 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,053 ) 

Bio-Techne Corp.

    Goldman Sachs Bank USA      (5,113 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (17 ) 

Bio-Techne Corp.

    HSBC Bank PLC      (10,006 )       02/09/28        -       1D OBFR01        Monthly        277  

Blackstone, Inc., Class A

    Barclays Bank PLC      (70,930 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (948 ) 

Blackstone, Inc., Class A

    Goldman Sachs Bank USA      (19,224 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,047  

Blackstone, Inc., Class A

    HSBC Bank PLC      (126,388 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        949  

Blackstone, Inc., Class A

    Merrill Lynch International      (5,870 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        320  

Booking Holdings, Inc.

    Barclays Bank PLC      (80,129 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (2,655 ) 

Brighthouse Financial, Inc.

    Merrill Lynch International      (139,161 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (256 ) 

Brown & Brown, Inc.

    Barclays Bank PLC      (52,344 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,171 ) 

Brown & Brown, Inc.

    Merrill Lynch International      (61,582 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (1,303 ) 

BXP, Inc.

    Barclays Bank PLC      (113,813 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (4,755 ) 

Canadian National Railway Co.

    Merrill Lynch International      (61,850 )       06/15/28        (0.05 )%      1D OBFR01        Monthly        1,825  

Cava Group, Inc.

    Goldman Sachs Bank USA      (6,340 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        82  

Cava Group, Inc.

    Merrill Lynch International      (57,906 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        5,649  

Cboe Global Markets, Inc.

    Merrill Lynch International      (62,674 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (2,854 ) 

CBRE Group, Inc., Class A

    Barclays Bank PLC      (9,755 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (372 ) 

CBRE Group, Inc., Class A

    HSBC Bank PLC      (24,729 )       02/09/28        -       1D OBFR01        Monthly        100  

CBRE Group, Inc., Class A

    Merrill Lynch International      (38,039 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,533  

CenterPoint Energy, Inc.

    Barclays Bank PLC      (55,673 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (150 ) 

CenterPoint Energy, Inc.

    HSBC Bank PLC      (6,603 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        124  

Charles River Laboratories International, Inc.

    Goldman Sachs Bank USA      (42,500 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        998  

Charles River Laboratories International, Inc.

    Merrill Lynch International      (75,278 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,767  

Clorox Co. (The)

    Barclays Bank PLC      (12,514 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (146 ) 

Clorox Co. (The)

    Goldman Sachs Bank USA      (71,680 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,651  

Clorox Co. (The)

    HSBC Bank PLC      (41,035 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        1,339  

CME Group, Inc., Class A

    Merrill Lynch International      (72,336 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (3,960 ) 

Comerica, Inc.

    Barclays Bank PLC      (37,198 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (482 ) 

Comerica, Inc.

    Merrill Lynch International      (28,982 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        494  

Conagra Brands, Inc.

    Barclays Bank PLC      (2,900 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (75 ) 

Conagra Brands, Inc.

    HSBC Bank PLC      (57,818 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        822  

Constellation Energy Corp.

    Barclays Bank PLC      (5,246 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (264 ) 

Constellation Energy Corp.

    Goldman Sachs Bank USA      (67,687 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (5,177 ) 

Constellation Energy Corp.

    HSBC Bank PLC      (4,600 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (605 ) 

Constellation Energy Corp.

    Merrill Lynch International      (3,413 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (261 ) 

Copart, Inc.

    Barclays Bank PLC      (59,507 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        9,006  

Copart, Inc.

    Goldman Sachs Bank USA      (3,589 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        655  

Copart, Inc.

    HSBC Bank PLC      (2,533 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        422  

Copart, Inc.

    Merrill Lynch International      (2,393 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        437  

Core & Main, Inc., Class A

    Goldman Sachs Bank USA      (101,330 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (4,398 ) 

Core & Main, Inc., Class A

    Merrill Lynch International      (12,922 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (561 ) 

Coterra Energy, Inc.

    Goldman Sachs Bank USA      (117,796 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,813  

Coterra Energy, Inc.

    HSBC Bank PLC      (42,911 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (2,209 ) 

Coterra Energy, Inc.

    Merrill Lynch International      (58,580 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,087  

Credo Technology Group Holding Ltd.

    Barclays Bank PLC      (10,393 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (31 ) 

Credo Technology Group Holding Ltd.

    Goldman Sachs Bank USA      (47,604 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (1,103 ) 

Crowdstrike Holdings, Inc., Class A

    Goldman Sachs Bank USA      (103,888 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        186  

CSX Corp.

    Barclays Bank PLC      (60,974 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,891 ) 

CSX Corp.

    Goldman Sachs Bank USA      (30,486 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (282 ) 

CSX Corp.

    HSBC Bank PLC      (6,226 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (565 ) 

CSX Corp.

    Merrill Lynch International      (5,415 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (50 ) 

DaVita, Inc.

    Barclays Bank PLC      (3,740 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        61  

DaVita, Inc.

    Goldman Sachs Bank USA      (139,436 )       08/19/26        (0.15 )%      1D FEDL01        Monthly        7,127  

DaVita, Inc.

    HSBC Bank PLC      (74,688 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        3,832  

DENTSPLY SIRONA, Inc.

    Barclays Bank PLC      (126,435 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,037 ) 

DENTSPLY SIRONA, Inc.

    Goldman Sachs Bank USA      (6,732 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        212  

DENTSPLY SIRONA, Inc.

    Merrill Lynch International      (14,504 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        457  

Duke Energy Corp.

    Goldman Sachs Bank USA      (52,753 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (810 ) 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   11

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity    Counterparty    Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Short Contracts(b) (continued)

                    

Duke Energy Corp.

    HSBC Bank PLC      USD (8,178 )       02/09/28        (0.15 )%      1D OBFR01        Monthly      $ (62 ) 

Eaton Corp. PLC

    Barclays Bank PLC      (10,274 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        28  

Eaton Corp. PLC

    HSBC Bank PLC      (131,720 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (5,646 ) 

Emerson Electric Co.

    Barclays Bank PLC      (25,113 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (434 ) 

Emerson Electric Co.

    Merrill Lynch International      (76,239 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        552  

Enbridge, Inc.

    Merrill Lynch International      (100,127 )       06/15/28        -       1D OBFR01        Monthly        (3,477 ) 

EPAM Systems, Inc.

    Barclays Bank PLC      (59,608 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        2,026  

EPAM Systems, Inc.

    Merrill Lynch International      (6,713 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        82  

Exact Sciences Corp.

    Barclays Bank PLC      (46,370 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        164  

Exact Sciences Corp.

    Goldman Sachs Bank USA      (3,202 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (6 ) 

Exact Sciences Corp.

    Merrill Lynch International      (9,830 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (19 ) 

Expedia Group, Inc.

    Goldman Sachs Bank USA      (2,813 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (21 ) 

Expedia Group, Inc.

    HSBC Bank PLC      (25,738 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (275 ) 

Expedia Group, Inc.

    Merrill Lynch International      (68,479 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (222 ) 

Exxon Mobil Corp.

    Goldman Sachs Bank USA      (29,642 )       08/19/26        (0.15 )%      1D FEDL01        Monthly        1,714  

Exxon Mobil Corp.

    HSBC Bank PLC      (108,934 )       02/09/28        -       1D OBFR01        Monthly        3,872  

Exxon Mobil Corp.

    Merrill Lynch International      (82,738 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        4,785  

Ferguson Enterprises, Inc.

    Goldman Sachs Bank USA      (66,142 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (229 ) 

Fifth Third Bancorp

    Goldman Sachs Bank USA      (41,938 )       08/19/26        (0.15 )%      1D FEDL01        Monthly        1,381  

Fifth Third Bancorp

    HSBC Bank PLC      (4,546 )       02/09/28        -       1D OBFR01        Monthly        (113 ) 

Fifth Third Bancorp

    Merrill Lynch International      (28,077 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        924  

FirstEnergy Corp.

    Barclays Bank PLC      (219,650 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        262  

Five9, Inc.

    Barclays Bank PLC      (3,127 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        52  

Five9, Inc.

    Goldman Sachs Bank USA      (43,553 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,826  

Five9, Inc.

    HSBC Bank PLC      (7,907 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (47 ) 

Five9, Inc.

    Merrill Lynch International      (15,883 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        666  

Fortinet, Inc.

    Barclays Bank PLC      (21,138 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        375  

Fortinet, Inc.

    HSBC Bank PLC      (107,416 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (4,440 ) 

Fortinet, Inc.

    Merrill Lynch International      (1,641 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        12  

Fortive Corp.

    Barclays Bank PLC      (2,736 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (2 ) 

Fortive Corp.

    Merrill Lynch International      (143,003 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        4,518  

GFL Environmental, Inc.

    Goldman Sachs Bank USA      (118,849 )       08/19/26        (0.15 )%      1D FEDL01        Monthly        (3,394 ) 

GFL Environmental, Inc.

    Merrill Lynch International      (41,136 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (1,175 ) 

Gilead Sciences, Inc.

    Barclays Bank PLC      (42,483 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,329 ) 

Gilead Sciences, Inc.

    HSBC Bank PLC      (17,080 )       02/09/28        -       1D OBFR01        Monthly        (2,074 ) 

Gilead Sciences, Inc.

    Merrill Lynch International      (2,107 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (205 ) 

Globe Life, Inc.

    Barclays Bank PLC      (1,913 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (37 ) 

Globe Life, Inc.

    Goldman Sachs Bank USA      (55,583 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (599 ) 

Globe Life, Inc.

    HSBC Bank PLC      (2,425 )       02/09/28        -       1D OBFR01        Monthly        (13 ) 

HCA Healthcare, Inc.

    Barclays Bank PLC      (58,756 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (741 ) 

Hexcel Corp.

    Barclays Bank PLC      (8,227 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (130 ) 

Hexcel Corp.

    Goldman Sachs Bank USA      (1,892 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        41  

Hexcel Corp.

    HSBC Bank PLC      (53,561 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (1,022 ) 

HF Sinclair Corp.

    Barclays Bank PLC      (50,942 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (977 ) 

HF Sinclair Corp.

    HSBC Bank PLC      (24,498 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (1,443 ) 

HubSpot, Inc.

    Barclays Bank PLC      (86,636 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        5,230  

HubSpot, Inc.

    Merrill Lynch International      (41,920 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,807  

Inspire Medical Systems, Inc.

    Barclays Bank PLC      (54,877 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        2,914  

Inspire Medical Systems, Inc.

    HSBC Bank PLC      (3,445 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        266  

Inspire Medical Systems, Inc.

    Merrill Lynch International      (3,006 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        104  

International Business Machines Corp.

    Barclays Bank PLC      (8,268 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (22 ) 

International Business Machines Corp.

    Merrill Lynch International      (211,211 )       06/15/28        -       1D OBFR01        Monthly        6,035  

IQVIA Holdings, Inc.

    Barclays Bank PLC      (2,485 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (41 ) 

IQVIA Holdings, Inc.

    Goldman Sachs Bank USA      (5,885 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        132  

IQVIA Holdings, Inc.

    Merrill Lynch International      (52,240 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        37  

J M Smucker Co. (The)

    Barclays Bank PLC      (28,557 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (158 ) 

J M Smucker Co. (The)

    Merrill Lynch International      (58,803 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        21  

Jackson Financial, Inc., Class A

    Barclays Bank PLC      (29,091 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (233 ) 

Jackson Financial, Inc., Class A

    Goldman Sachs Bank USA      (37,488 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,448  

Johnson & Johnson

    Barclays Bank PLC      (36,932 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (629 ) 

 

 

12  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity    Counterparty    Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Short Contracts(b) (continued)

                    

Johnson & Johnson

    Goldman Sachs Bank USA      USD (40,993 )       08/19/26        (0.15 )%      1D FEDL01        Monthly      $ (1,534 ) 

Kenvue, Inc.

    Barclays Bank PLC      (64,766 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,020 ) 

KeyCorp

    Barclays Bank PLC      (55,339 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (600 ) 

KeyCorp

    HSBC Bank PLC      (4,484 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (84 ) 

KeyCorp

    Merrill Lynch International      (1,137 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        43  

Labcorp Holdings, Inc.

    Barclays Bank PLC      (55,151 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1,614 ) 

Labcorp Holdings, Inc.

    HSBC Bank PLC      (9,204 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (8 ) 

Lam Research Corp.

    Barclays Bank PLC      (5,862 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        126  

Lam Research Corp.

    HSBC Bank PLC      (66,886 )       02/09/28        -       1D OBFR01        Monthly        (5,260 ) 

Lattice Semiconductor Corp.

    Goldman Sachs Bank USA      (5,957 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        833  

Lattice Semiconductor Corp.

    HSBC Bank PLC      (57,510 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        4,795  

Linde PLC

    Barclays Bank PLC      (57,834 )       07/14/25        0.10 %      1D OBFR01        Monthly        (1,081 ) 

Linde PLC

    HSBC Bank PLC      (3,173 )       02/09/28        -       1D OBFR01        Monthly        (100 ) 

Lowe’s Cos., Inc.

    Barclays Bank PLC      (59,070 )       07/14/25        0.10 %      1D OBFR01        Monthly        (523 ) 

Lowe’s Cos., Inc.

    HSBC Bank PLC      (2,245 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (13 ) 

LPL Financial Holdings, Inc.

    Barclays Bank PLC      (129,826 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (3,357 ) 

LPL Financial Holdings, Inc.

    HSBC Bank PLC      (7,458 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (1,060 ) 

Markel Group, Inc.

    Goldman Sachs Bank USA      (61,378 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (756 ) 

Medpace Holdings, Inc.

    Barclays Bank PLC      (121,021 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (772 ) 

Medpace Holdings, Inc.

    Merrill Lynch International      (26,380 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        134  

MSCI, Inc., Class A

    Barclays Bank PLC      (54,696 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (14 ) 

MSCI, Inc., Class A

    Goldman Sachs Bank USA      (101,848 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        2,016  

MSCI, Inc., Class A

    Merrill Lynch International      (63,295 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,253  

Murphy Oil Corp.

    Goldman Sachs Bank USA      (129,427 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        9,351  

Murphy Oil Corp.

    HSBC Bank PLC      (90,673 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        1,908  

Murphy Oil Corp.

    Merrill Lynch International      (5,256 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        380  

Norfolk Southern Corp.

    Barclays Bank PLC      (22,526 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (703 ) 

Norfolk Southern Corp.

    Goldman Sachs Bank USA      (39,026 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (514 ) 

Norfolk Southern Corp.

    Merrill Lynch International      (84,149 )       06/15/28        0.30 %      1D OBFR01        Monthly        (1,107 ) 

Northern Trust Corp.

    Barclays Bank PLC      (42,028 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (134 ) 

Northern Trust Corp.

    Goldman Sachs Bank USA      (54,272 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        369  

Northern Trust Corp.

    HSBC Bank PLC      (60,654 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (3,817 ) 

NRG Energy, Inc.

    Goldman Sachs Bank USA      (3,876 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (22 ) 

NRG Energy, Inc.

    HSBC Bank PLC      (114,684 )       02/09/28        -       1D OBFR01        Monthly        (33,889 ) 

NRG Energy, Inc.

    Merrill Lynch International      (4,961 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (28 ) 

NXP Semiconductors NV

    Barclays Bank PLC      (3,537 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        97  

NXP Semiconductors NV

    Goldman Sachs Bank USA      (54,158 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        5,037  

NXP Semiconductors NV

    HSBC Bank PLC      (16,406 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (223 ) 

Occidental Petroleum Corp.

    Barclays Bank PLC      (27,277 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        199  

Occidental Petroleum Corp.

    HSBC Bank PLC      (25,900 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        413  

Occidental Petroleum Corp.

    Merrill Lynch International      (109,206 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        6,522  

Okta, Inc., Class A

    Barclays Bank PLC      (25,727 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        4,577  

Okta, Inc., Class A

    HSBC Bank PLC      (60,184 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        11,075  

Omega Healthcare Investors, Inc.

    Merrill Lynch International      (123,517 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (2,209 ) 

Otis Worldwide Corp.

    Barclays Bank PLC      (3,693 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        70  

Otis Worldwide Corp.

    Goldman Sachs Bank USA      (56,563 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,451  

Paychex, Inc.

    Barclays Bank PLC      (62,472 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (692 ) 

Paycom Software, Inc.

    HSBC Bank PLC      (38,649 )       02/09/28        -       1D OBFR01        Monthly        (1,510 ) 

Paycom Software, Inc.

    Merrill Lynch International      (20,004 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (205 ) 

Penske Automotive Group, Inc.

    Goldman Sachs Bank USA      (63,505 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        624  

Pfizer, Inc.

    Goldman Sachs Bank USA      (4,091 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (161 ) 

Pfizer, Inc.

    HSBC Bank PLC      (50,608 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (1,164 ) 

Pfizer, Inc.

    Merrill Lynch International      (5,966 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (235 ) 

Pool Corp.

    Barclays Bank PLC      (5,462 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        52  

Pool Corp.

    Goldman Sachs Bank USA      (1,881 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        78  

Pool Corp.

    HSBC Bank PLC      (44,944 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        156  

Pool Corp.

    Merrill Lynch International      (9,406 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        388  

Procore Technologies, Inc.

    Barclays Bank PLC      (4,737 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        35  

Procore Technologies, Inc.

    Goldman Sachs Bank USA      (6,429 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        383  

Procore Technologies, Inc.

    HSBC Bank PLC      (17,729 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (206 ) 

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   13

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity    Counterparty    Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Short Contracts(b) (continued)

                    

Procore Technologies, Inc.

    Merrill Lynch International      USD (97,145 )       06/15/28        (0.15 )%      1D OBFR01        Monthly      $ 5,794  

PTC, Inc.

    Goldman Sachs Bank USA      (55,835 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,131  

PTC, Inc.

    HSBC Bank PLC      (49,587 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (1,078 ) 

PTC, Inc.

    Merrill Lynch International      (46,214 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        936  

Pure Storage, Inc., Class A

    Barclays Bank PLC      (80,992 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        3,555  

Pure Storage, Inc., Class A

    Goldman Sachs Bank USA      (27,352 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        932  

Pure Storage, Inc., Class A

    HSBC Bank PLC      (1,910 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (180 ) 

QXO, Inc.

    Goldman Sachs Bank USA      (96,514 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (4,330 ) 

Range Resources Corp.

    Barclays Bank PLC      (21,833 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        759  

Range Resources Corp.

    Merrill Lynch International      (38,769 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        2,174  

Raymond James Financial, Inc.

    HSBC Bank PLC      (74,516 )       02/09/28        -       1D OBFR01        Monthly        (737 ) 

Regency Centers Corp.

    Barclays Bank PLC      (54,234 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (816 ) 

Regency Centers Corp.

    Merrill Lynch International      (5,662 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        34  

Republic Services, Inc.

    HSBC Bank PLC      (2,380 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (193 ) 

Republic Services, Inc.

    Merrill Lynch International      (59,525 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (2,996 ) 

SBA Communications Corp.

    Goldman Sachs Bank USA      (63,000 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (770 ) 

SBA Communications Corp.

    HSBC Bank PLC      (20,823 )       02/09/28        -       1D OBFR01        Monthly        416  

Schlumberger NV

    Barclays Bank PLC      (21,763 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        512  

Schlumberger NV

    HSBC Bank PLC      (3,947 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        146  

Schlumberger NV

    Merrill Lynch International      (57,581 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        4,304  

Sherwin-Williams Co. (The)

    Goldman Sachs Bank USA      (70,121 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        512  

Sherwin-Williams Co. (The)

    HSBC Bank PLC      (68,239 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (1,011 ) 

Sherwin-Williams Co. (The)

    Merrill Lynch International      (19,880 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        145  

Simon Property Group, Inc.

    Goldman Sachs Bank USA      (64,397 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (16 ) 

Skyworks Solutions, Inc.

    Goldman Sachs Bank USA      (40,766 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        1,833  

Skyworks Solutions, Inc.

    HSBC Bank PLC      (11,372 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (294 ) 

Skyworks Solutions, Inc.

    Merrill Lynch International      (61,583 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        2,769  

Solventum Corp.

    Barclays Bank PLC      (137,182 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (812 ) 

Solventum Corp.

    Goldman Sachs Bank USA      (40,409 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (83 ) 

Solventum Corp.

    Merrill Lynch International      (29,541 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        (61 ) 

Stryker Corp.

    HSBC Bank PLC      (65,783 )       02/09/28        (0.10 )%      1D OBFR01        Monthly        (31 ) 

T Rowe Price Group, Inc.

    Barclays Bank PLC      (96,066 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        885  

T Rowe Price Group, Inc.

    HSBC Bank PLC      (6,672 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (67 ) 

TC Energy Corp.

    Merrill Lynch International      (62,263 )       06/15/28        -       1D OBFR01        Monthly        (936 ) 

Teleflex, Inc.

    Barclays Bank PLC      (2,705 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        15  

Teleflex, Inc.

    Goldman Sachs Bank USA      (3,921 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        131  

Teleflex, Inc.

    HSBC Bank PLC      (53,248 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        1,650  

Teleflex, Inc.

    Merrill Lynch International      (2,909 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        97  

The Campbell’s Co.

    Barclays Bank PLC      (6,310 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        13  

The Campbell’s Co.

    Goldman Sachs Bank USA      (3,076 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        81  

The Campbell’s Co.

    HSBC Bank PLC      (45,258 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        1,959  

The Campbell’s Co.

    Merrill Lynch International      (71,738 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,888  

Thomson Reuters Corp.

    Barclays Bank PLC      (162,714 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (3,750 ) 

TKO Group Holdings, Inc., Class A

    Barclays Bank PLC      (19,373 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (196 ) 

TKO Group Holdings, Inc., Class A

    Goldman Sachs Bank USA      (15,823 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        358  

TKO Group Holdings, Inc., Class A

    HSBC Bank PLC      (89,718 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        5,921  

Trade Desk, Inc. (The), Class A

    Goldman Sachs Bank USA      (60,596 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        871  

Trade Desk, Inc. (The), Class A

    Merrill Lynch International      (18,938 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        209  

TransMedics Group, Inc.

    Barclays Bank PLC      (12,581 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (386 ) 

TransMedics Group, Inc.

    Goldman Sachs Bank USA      (47,384 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (2,066 ) 

TransMedics Group, Inc.

    HSBC Bank PLC      (7,829 )       02/09/28        -       1D OBFR01        Monthly        (2,849 ) 

Trex Co., Inc.

    Merrill Lynch International      (61,531 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        4,264  

Truist Financial Corp.

    Barclays Bank PLC      (4,423 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (1 ) 

Truist Financial Corp.

    Goldman Sachs Bank USA      (11,036 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        450  

Truist Financial Corp.

    Merrill Lynch International      (47,192 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,925  

U.S. Bancorp

    Goldman Sachs Bank USA      (15,380 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        342  

U.S. Bancorp

    Merrill Lynch International      (58,355 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,296  

UL Solutions, Inc., Class A

    Goldman Sachs Bank USA      (3,908 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (25 ) 

UL Solutions, Inc., Class A

    HSBC Bank PLC      (55,899 )       02/09/28        -       1D OBFR01        Monthly        (801 ) 

Universal Health Services, Inc., Class B

    Barclays Bank PLC      (27,624 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (548 ) 

 

 

14  

2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

Equity Swap Contracts (continued)

 

               
Reference Entity    Counterparty    Notional
Amount		      Termination Date      Spread     Reference Rate      Payment
Frequency		      Value/Unrealized
Appreciation
(Depreciation)		  

Short Contracts(b) (continued)

                    

Universal Health Services, Inc., Class B

    Goldman Sachs Bank USA      USD (40,743 )       08/18/26        (0.15 )%      1D FEDL01        Monthly      $ 1,150  

Universal Health Services, Inc., Class B

    HSBC Bank PLC      (32,160 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        (1,152 ) 

Universal Health Services, Inc., Class B

    Merrill Lynch International      (25,073 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        708  

Vail Resorts, Inc.

    Barclays Bank PLC      (11,130 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (883 ) 

Vail Resorts, Inc.

    HSBC Bank PLC      (48,756 )       02/09/28        -       1D OBFR01        Monthly        (5,702 ) 

VeriSign, Inc.

    Barclays Bank PLC      (57,955 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (626 ) 

Viatris, Inc.

    Goldman Sachs Bank USA      (33,921 )       08/19/26        (0.15 )%      1D FEDL01        Monthly        -  

Viatris, Inc.

    Merrill Lynch International      (34,747 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        -  

Vistra Corp.

    Barclays Bank PLC      (4,796 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (181 ) 

Vistra Corp.

    Goldman Sachs Bank USA      (87,587 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        (4,902 ) 

Vistra Corp.

    HSBC Bank PLC      (31,000 )       02/09/28        -       1D OBFR01        Monthly        (4,325 ) 

Western Alliance Bancorp

    Barclays Bank PLC      (3,900 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (10 ) 

Western Alliance Bancorp

    HSBC Bank PLC      (124,942 )       02/09/28        (0.15 )%      1D OBFR01        Monthly        4,234  

Weyerhaeuser Co.

    Barclays Bank PLC      (8,307 )       07/14/25        (0.15 )%      1D OBFR01        Monthly        (217 ) 

Weyerhaeuser Co.

    Goldman Sachs Bank USA      (2,118 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        45  

Weyerhaeuser Co.

    Merrill Lynch International      (51,855 )       06/15/28        (0.15 )%      1D OBFR01        Monthly        1,097  

WW Grainger, Inc.

    HSBC Bank PLC      (59,616 )       02/09/28        -       1D OBFR01        Monthly        (2,375 ) 

Zimmer Biomet Holdings, Inc.

    Goldman Sachs Bank USA      (61,387 )       08/18/26        (0.15 )%      1D FEDL01        Monthly        2,859  
                   

 

 

  

Total short positions of equity swaps

                       21,070  
                   

 

 

  

Total long and short positions of equity swaps

                    156,647  

Net dividends and financing fees

                       (1,819 ) 
                   

 

 

  

Total equity swap contracts including dividends and financing fees

 

               $ 154,828  
                   

 

 

  

 

  (a)

The Fund receives the total return on a reference entity and pays a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying position.

  (b)

The Fund pays the total return on a reference entity and receives a variable rate of interest, based on a specified benchmark. The benchmark and spread are determined based upon the country and/or currency of the individual underlying position.

Balances Reported in the Statement of Assets and Liabilities for OTC Swaps

 

         
    

Swap

Premiums

Paid

     

Swap

Premiums

Received

     

Unrealized

Appreciation

     

Unrealized

Depreciation

  

OTC Swaps

   $  —      $ —      $  569,641      $  (414,813)  

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
     

Commodity

Contracts

     

Credit

Contracts

     

Equity

Contracts

     

Foreign

Currency

Exchange

Contracts

     

Interest

Rate

Contracts

     

Other

Contracts

      Total  

Assets — Derivative Financial Instruments

                     

Swaps — OTC

                     

Unrealized appreciation on OTC swaps;

                     

Swap premiums paid

    $ —      $ —      $ 569,641      $ —      $ —      $ —      $ 569,641  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Liabilities — Derivative Financial Instruments

                     

Swaps — OTC

                     

Unrealized depreciation on OTC swaps;

                     

Swap premiums received

    $ —      $ —      $ 414,813      $ —      $ —      $ —      $ 414,813  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   15

Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

For the period ended May 31, 2025, the effect of derivative financial instruments in the Statement of Operations was as follows:

 

               
     

Commodity

Contracts

     

Credit

Contracts

     

Equity

Contracts

     

Foreign

Currency

Exchange

Contracts

     

Interest

Rate

Contracts

     

Other

Contracts

      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ 59,353      $ —      $ —      $ —      $ 59,353  

Swaps

      —        —        (1,154,147 )       —        —        —        (1,154,147 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   $ —      $ —      $ (1,094,794 )     $ —      $ —      $ —      $ (1,094,794 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ (31,424 )     $ —      $ —      $ —      $ (31,424 ) 

Swaps

      —        —        257,396        —        —        —        257,396  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   $ —      $ —      $ 225,972      $ —      $ —      $ —      $ 225,972  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

  

Futures contracts:

   

Average notional value of contracts — long

    $ 939,956  

Average notional value of contracts — short

      20,693  

Equity swaps:

   

Average notional value — long

      18,831,263  

Average notional value — short

      13,703,540  

 

  

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

Derivative Financial Instruments – Offsetting as of Period End

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

 

     
      Assets      Liabilities  

Derivative Financial Instruments

      

Swaps — OTC(a)

   $ 569,641      $ 414,813  
  

 

 

     

 

 

  

Total derivative assets and liabilities in the Statement of Assets and Liabilities

    $ 569,641      $ 414,813  
  

 

 

     

 

 

  

Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)

      —        (1,819 ) 
  

 

 

     

 

 

  

Total derivative assets and liabilities subject to an MNA

    $  569,641      $  412,994  
  

 

 

     

 

 

  

 

  (a) 

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

 

 

 

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Schedule of Investments (continued)

May 31, 2025

   

BlackRock U.S. Insights Long/Short Equity Fund

 

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

 

           
Counterparty   

Derivative

Assets

Subject to

an MNA by

Counterparty

     

Derivatives

Available

for Offset(a)

     

Non-

Cash

Collateral

Received(b)

     

Cash

Collateral

Received(b)

     

Net

Amount of

Derivative

Assets(c)

  

Barclays Bank PLC

    $ 117,144      $ (63,482 )     $ —      $ —      $ 53,662  

Goldman Sachs Bank USA

      120,667        (86,571 )       —        —        34,096  

HSBC Bank PLC

      190,414        (156,035 )       —        —        34,379  

Merrill Lynch International

      141,416        (106,906 )       —        —        34,510  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
   $ 569,641      $ (412,994 )     $ —      $ —      $ 156,647  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

Counterparty   

Derivative

Liabilities

Subject to

an MNA by

Counterparty

     

Derivatives

Available

for Offset(a)

       

Non-

Cash

Collateral

Pledged(b)

       

Cash

Collateral

Pledged(b)

    

Net

Amount of

Derivative

Liabilities(d)

  

Barclays Bank PLC

    $ 63,482      $ (63,482 )       $ —        $ —     $ —  

Goldman Sachs Bank USA

      86,571        (86,571 )         —          —       —  

HSBC Bank PLC

      156,035        (156,035 )         —          —       —  

Merrill Lynch International

      106,906        (106,906 )         —          —       —  
  

 

 

     

 

 

       

 

 

       

 

 

    

 

 

  
   $ 412,994      $ (412,994 )       $ —        $ —     $ —  
  

 

 

     

 

 

       

 

 

       

 

 

    

 

 

  

 

  (a) 

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

 
  (b) 

Excess of collateral received/pledged, if any, from the individual counterparty is not shown for financial reporting purposes.

 
  (c) 

Net amount represents the net amount receivable from the counterparty in the event of default.

 
  (d)

Net amount represents the net amount payable due to the counterparty in the event of default.

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1      Level 2     Level 3     Total  

 

  

Assets

         

Investments

         

Long-Term Investments

         

Common Stocks

   $ 88,651      $ —     $ —     $ 88,651  

Short-Term Securities

         

U.S. Treasury Obligations

     —        10,514,977       —       10,514,977  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $  88,651      $  10,514,977     $ —     $  10,603,628  
 

 

 

     

 

 

    

 

 

    

 

 

  

Derivative Financial Instruments(a)

        

Assets

         

Equity Contracts

   $ —      $ 569,641     $ —     $ 569,641  

Liabilities

         

Equity Contracts

     —        (414,813 )      —       (414,813 ) 
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ —      $ 154,828     $ —     $ 154,828  
 

 

 

     

 

 

    

 

 

    

 

 

  

 

  (a) 

Derivative financial instruments are swaps. Swaps are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E  O F  I N V E S T M E N T S

   17

Statement of Assets and Liabilities

May 31, 2025

 

    

BlackRock U.S. Insights
Long/Short Equity

Fund

  

ASSETS

  

Investments, at value — unaffiliated(a)

  $    10,603,628  

Cash

     635,404  

Cash pledged:

  

Collateral — OTC derivatives

     445,707  

Receivables:

  

Securities lending income — affiliated

     13  

Swaps

     639,927  

From the Administrator

     27,544  

Unrealized appreciation on OTC swaps

     569,641  

Prepaid expenses

     32,350  
 

 

 

  

Total assets

     12,954,214  
 

 

 

  

LIABILITIES

  

Payables:

  

Swaps

     656,575  

Directors’ and Officer’s fees

     118  

Other accrued expenses

     43,507  

Professional fees

     11,610  

Service and distribution fees

     63  

Unrealized depreciation on OTC swaps

     414,813  
 

 

 

  

Total liabilities

     1,126,686  
 

 

 

  

Commitments and contingent liabilities

  

NET ASSETS

   $ 11,827,528  
 

 

 

  

NET ASSETS CONSIST OF:

  

Paid-in capital

   $ 12,017,534  

Accumulated loss

     (190,006 ) 
 

 

 

  

NET ASSETS

   $ 11,827,528  
 

 

 

  

(a) Investments, at cost — unaffiliated

   $ 10,592,918  

NET ASSET VALUE

  

Institutional

  

Net assets

   $ 116,362  
 

 

 

  

Shares outstanding

     12,206  
 

 

 

  

Net asset value

   $ 9.53  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  

Investor A

  

Net assets

   $ 299,061  
 

 

 

  

Shares outstanding

     31,459  
 

 

 

  

Net asset value

   $ 9.51  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  

Class K

  

Net assets

   $ 11,412,105  
 

 

 

  

Shares outstanding

     1,196,339  
 

 

 

  

Net asset value

   $ 9.54  
 

 

 

  

Shares authorized

     Unlimited  
 

 

 

  

Par value

   $ 0.001  
 

 

 

  

See notes to financial statements.

 

 

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Statement of Operations

Year Ended May 31, 2025

 

    

BlackRock U.S. Insights
Long/Short Equity

Fund

  

INVESTMENT INCOME

  

Interest — unaffiliated

   $      548,275  

Securities lending income — affiliated — net

     22  
 

 

 

  

Total investment income

     548,297  
 

 

 

  

EXPENSES

  

Investment advisory

     163,105  

Professional

     159,753  

Registration

     50,849  

Accounting services

     37,157  

Printing and postage

     30,123  

Trustees and Officer

     6,281  

Administration

     5,097  

Custodian

     3,323  

Administration — class specific

     2,398  

Service and distribution — class specific

     865  

Transfer agent — class specific

     801  

Miscellaneous

     11,755  
 

 

 

  

Total expenses excluding interest expense

     471,507  

Interest expense

     53  
 

 

 

  

Total expenses

     471,560  
 

 

 

  

Less:

  

Administration fees waived

     (3,663 ) 

Administration fees waived by the Manager — class specific

     (2,376 ) 

Fees waived and/or reimbursed by the Manager

     (276,520 ) 

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     (604 ) 
 

 

 

  

Total expenses after fees waived and/or reimbursed

     188,397  
 

 

 

  

Net investment income

     359,900  
 

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

  

Net realized gain (loss) from:

  

Investments — unaffiliated

     6,175  

Investments — affiliated

     (2 ) 

Futures contracts

     59,353  

Swaps

     (1,154,147 ) 
 

 

 

  
    (1,088,621 ) 
 

 

 

  

Net change in unrealized appreciation (depreciation) on:

  

Investments — unaffiliated

     (1,060 ) 

Futures contracts

     (31,424 ) 

Foreign currency translations

     22  

Swaps

     257,396  
 

 

 

  
    224,934  
 

 

 

  

Net realized and unrealized loss

     (863,687 ) 
 

 

 

  

NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ (503,787 ) 
 

 

 

  

See notes to financial statements.

 

 

S T A T E M E N T O F O P E R A T I O N S

   19

 

Statements of Changes in Net Assets

 

    BlackRock U.S. Insights Long/Short Equity
Fund		  
    

Year Ended

05/31/25

    

Period from

06/13/23(a)

to 05/31/24

  

INCREASE (DECREASE) IN NET ASSETS

 

  

OPERATIONS

    

Net investment income

   $       359,900     $       382,301  

Net realized gain (loss)

     (1,088,621 )      1,864,418  

Net change in unrealized appreciation (depreciation)

     224,934       (59,417 ) 
 

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     (503,787 )      2,187,302  
 

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(b)

   

Institutional

     (13,319 )      (9,320 ) 

Investor A

     (45,448 )      (13,901 ) 

Class K

     (1,306,472 )      (915,213 ) 
 

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (1,365,239 )      (938,434 ) 
 

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

    

Net increase in net assets derived from capital share transactions

     1,253,252       11,194,434  
 

 

 

    

 

 

  

NET ASSETS

    

Total increase (decrease) in net assets

     (615,774 )      12,443,302  

Beginning of period

     12,443,302       —  
 

 

 

    

 

 

  

End of period

   $ 11,827,528     $ 12,443,302  
 

 

 

    

 

 

  

 

(a) 

Commencement of operations.

 
(b) 

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

 

See notes to financial statements.

 

 

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Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock U.S. Insights Long/Short Equity
Fund		  
    Institutional  
     
 Year Ended
05/31/25		  
 		    

 Period from

06/13/23

to 05/31/24

  

(a)  

 

Net asset value, beginning of period

   $     11.15     $     10.00  
 

 

 

    

 

 

  

Net investment income(b)

    0.29       0.36  

Net realized and unrealized gain (loss)

     (0.69 )      1.72  
 

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.40 )      2.08  
 

 

 

    

 

 

  

Distributions(c)

   

From net investment income

     (0.94 )      (0.93 ) 

From net realized gain

     (0.28 )      —  
 

 

 

    

 

 

  

Total distributions

     (1.22 )      (0.93 ) 
 

 

 

    

 

 

  

Net asset value, end of period

   $ 9.53     $ 11.15  
 

 

 

    

 

 

  

Total Return(d)

   

Based on net asset value

     (4.16 )%      21.71 %(e)  
 

 

 

    

 

 

  

Ratios to Average Net Assets(f)

   

Total expenses

     4.06 %      4.85 %(g)(h)(i)  
 

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.61 %      1.55 %(g)(h)(i)  
 

 

 

    

 

 

  

Net investment income

     2.96 %      3.47 %(g)  
 

 

 

    

 

 

  

Supplemental Data

    

Net assets, end of period (000)

   $ 116     $ 122  
 

 

 

    

 

 

  

Portfolio turnover rate(j)

    313 %      — % 
 

 

 

    

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Includes non-recurring expenses of offering and organization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 2.93% and 1.14%, respectively.

(i) 

Audit, printing, offering, and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses and total expenses after fees waived and/or reimbursed would have been 4.94% and 1.59%, respectively.

(j) 

Excludes underlying investments in equity swaps.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   21

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock U.S. Insights Long/Short Equity Fund (continued)  
    Investor A  
     

 Year Ended

05/31/25

  

 

    

 Period from

06/13/23

to 05/31/24

  

(a)  

 

Net asset value, beginning of period

   $       11.13     $       10.00  
 

 

 

    

 

 

  

Net investment income(b)

    0.27       0.34  

Net realized and unrealized gain (loss)

     (0.68 )      1.71  
 

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.41 )      2.05  
 

 

 

    

 

 

  

Distributions(c)

   

From net investment income

     (0.93 )      (0.92 ) 

From net realized gain

     (0.28 )      —  
 

 

 

    

 

 

  

Total distributions

     (1.21 )      (0.92 ) 
 

 

 

    

 

 

  

Net asset value, end of period

   $ 9.51     $ 11.13  
 

 

 

    

 

 

  

Total Return(d)

   

Based on net asset value

     (4.27 )%      21.37 %(e) 
 

 

 

    

 

 

  

Ratios to Average Net Assets(f)

   

Total expenses

     4.20 %      4.90 %(g)(h)(i) 
 

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.86 %      1.80 %(g)(h)(i) 
 

 

 

    

 

 

  

Net investment income

     2.77 %      3.24 %(g) 
 

 

 

    

 

 

  

Supplemental Data

    

Net assets, end of period (000)

   $ 299     $ 396  
 

 

 

    

 

 

  

Portfolio turnover rate(j)

    313 %      — % 
 

 

 

    

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

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

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Includes non-recurring expenses of offering and organization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 3.14% and 1.54%, respectively.

(i) 

Audit, printing, offering, and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses and total expenses after fees waived and/or reimbursed would have been 4.99% and 1.83%, respectively.

(j) 

Excludes underlying investments in equity swaps.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock U.S. Insights Long/Short Equity Fund (continued)  
    Class K  
     

 Year Ended

05/31/25

  

 

    

 Period from

06/13/23

to 05/31/24

  

(a)  

 

Net asset value, beginning of period

   $        11.15     $        10.00  
 

 

 

    

 

 

  

Net investment income(b)

    0.29       0.36  

Net realized and unrealized gain (loss)

     (0.68 )      1.72  
 

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.39 )      2.08  
 

 

 

    

 

 

  

Distributions(c)

   

From net investment income

     (0.94 )      (0.93 ) 

From net realized gain

     (0.28 )      —  
 

 

 

    

 

 

  

Total distributions

     (1.22 )      (0.93 ) 
 

 

 

    

 

 

  

Net asset value, end of period

   $ 9.54     $ 11.15  
 

 

 

    

 

 

  

Total Return(d)

   

Based on net asset value

     (4.06 )%      21.73 %(e)  
 

 

 

    

 

 

  

Ratios to Average Net Assets(f)

   

Total expenses

     3.92 %      4.75 %(g)(h)(i)  
 

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.56 %      1.52 %(g)(h)(i)  
 

 

 

    

 

 

  

Net investment income

     3.01 %      3.50 %(g)  
 

 

 

    

 

 

  

Supplemental Data

    

Net assets, end of period (000)

   $ 11,412     $ 11,925  
 

 

 

    

 

 

  

Portfolio turnover rate(j)

    313 %      — % 
 

 

 

    

 

 

  

 

(a) 

Commencement of operations.

(b) 

Based on average shares outstanding.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g) 

Annualized.

(h) 

Includes non-recurring expenses of offering and organization costs. Without these costs, total expenses and total expenses after fees waived and/or reimbursed would have been 2.84% and 1.12%, respectively.

(i) 

Audit, printing, offering, and organization costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses and total expenses after fees waived and/or reimbursed would have been 4.84% and 1.56%, respectively.

(j) 

Excludes underlying investments in equity swaps.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   23

Notes to Financial Statements

 

1. ORGANIZATION

BlackRock FundsSM (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 U.S. Insights Long/Short Equity Fund (the “Fund”) is a series of the Trust. The Fund is classified as non-diversified.

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

 

       
Share Class   Initial Sales Charge      CDSC     Conversion Privilege  

Institutional and Class K Shares

     No        No       None  

Investor A Shares

     Yes        No (a)      None  

 

  (a) 

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 

The Fund, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, is included in a complex of funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Interest income, including amortization and accretion of premiums and discounts on debt securities is recognized daily on an accrual basis. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: The Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Cash: The Fund may maintain cash at its custodian which, at times may exceed United States federally insured limits. The Fund may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Fund is obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statement of Operations.

Collateralization: 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.

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

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

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

The Fund has an arrangement with its custodian whereby credits are earned on uninvested cash balances. For financial reporting purposes, custodian credits, if any, are included in interest income in the Statement of Operations.

 

 

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Notes to Financial Statements (continued)

 

Segment Reporting: The Fund adopted Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures (“ASU 2023-07”) during the period. The Fund’s adoption of the new standard impacted financial statement disclosures only and did not affect the Fund’s financial position or results of operations.

The Chief Financial Officer acts as the Fund’s Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance and allocating resources with respect to the Fund. The CODM has concluded that the Fund operates as a single operating segment since the Fund has a single investment strategy as disclosed in its prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Fund’s financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: The Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of Trustees of the Fund (the “Board”) has approved the designation of the Fund’s Manager as the valuation designee for the Fund. The Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of the Fund’s assets and liabilities:

 

  •  

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.

 

  •  

Fixed-income investments for which market quotations are readily available are generally valued using the last available bid price provided by independent dealers or third-party pricing services. Pricing services generally value fixed-income securities assuming orderly transactions of an institutional round lot size, but a fund may hold or transact in such securities in smaller, odd lot sizes. Odd lots of securities in certain asset classes may trade at lower prices than institutional round lots, and the value ultimately realized when the securities are sold could differ from the prices used by a fund. The pricing services may use matrix pricing or valuation models that utilize certain inputs and assumptions to derive values, including transaction data (e.g., recent representative bids and offers), market data, credit quality information, perceived market movements, news, and other relevant information. Certain fixed-income securities, including asset-backed and mortgage related securities may be valued based on valuation models that consider the estimated cash flows of each tranche of the entity, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche. The amortized cost method of valuation may be used with respect to debt obligations with sixty days or less remaining to maturity unless the Manager determines such method does not represent fair value.

 

  •  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s net asset value (“NAV”).

 

  •  

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

 

  •  

Interest rate, credit default, inflation and currency swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using daily swap curves and models that incorporate market data and discounted cash flows. Total return and equity swap agreements are valued utilizing quotes received daily by independent pricing services or through brokers, which are derived using models that incorporate market trades and fair value of the underlying reference instruments.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the NYSE. Each business day, the Fund uses current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that 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 Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the measurement date.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. 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 that the Fund has the ability to access for identical assets or liabilities;

 

  •  

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

 

  •  

Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   25

Notes to Financial Statements (continued)

 

inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by privately held companies or funds that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: The Fund may lend its securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by the Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Fund is entitled to all distributions made on or in respect of the loaned securities, but does not receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedule of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Fund’s Schedule of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statement of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Fund under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Fund, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Fund can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, the Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. The Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by the Fund.

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Fund engages in various portfolio investment strategies using derivative contracts both to increase the returns of the Fund and/or to manage its exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedule of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

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

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

 

 

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Notes to Financial Statements (continued)

 

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

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

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the CCP becomes the Fund’s counterparty on the swap. The Fund is required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Fund is required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedule of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statement of Assets and Liabilities. Pursuant to the contract, the Fund agrees to receive from or pay to the broker variation margin. Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statement of Assets and Liabilities. Payments received from (paid to) the counterparty are amortized over the term of the contract and recorded as realized gains (losses) in the Statement of Operations, including those at termination.

 

  ·  

Equity swaps — Equity swaps are entered into to obtain exposure to a security or market without owning such security or investing directly in such market or to exchange the risk/return of one security or market (e.g., fixed-income) with another security or market (e.g., equity or commodity prices) (equity risk, commodity price risk and/or interest rate risk).

Equity swaps are designed to function as direct economic investments in long or short equity positions. This means that the Fund 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. Benefits and risks include capital appreciation (depreciation), corporate actions and dividends received and paid. Equity swaps incur interest charges and credits (“financing fees”) related to the notional value of the position. These interest charges and credits are based on a specified benchmark rate plus or minus a specified spread.

Swap transactions involve, to varying degrees, elements of interest rate, credit and market risks in excess of the amounts recognized in the Statement of Assets and Liabilities. Such risks involve the possibility that there will be no liquid market for these agreements, that the counterparty to the agreements may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreements, and that there may be unfavorable changes in interest rates and/or market values associated with these transactions.

Master Netting Arrangements: In order to define its contractual rights and to secure rights that will help it mitigate its counterparty risk, the Fund may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with its derivative contract 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. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against the right of offset in bankruptcy, insolvency or other events.

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

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

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of the Fund, entered into an Investment Advisory Agreement with the Manager, the Fund’s investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory and administrative 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.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   27

Notes to Financial Statements (continued)

 

For such services, the Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of the Fund’s net assets:

 

   
Average Daily Net Assets   Investment Advisory Fees  

First $1 billion

     1.36 % 

$1 billion - $3 billion

     1.28  

$3 billion - $5 billion

     1.22  

$5 billion - $10 billion

     1.18  

Greater than $10 billion

     1.15  

The Manager entered into a sub-advisory agreement with BlackRock International Limited (“BIL”), an affiliate of the Manager. The Manager pays BIL for services it provides for that portion of the Fund for which BIL acts as Sub-Adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by the Fund to the Manager.

Service and Distribution Fees: The Trust, on behalf of the Fund, entered into a Distribution Agreement and 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:

 

     
Share Class   Service Fees     Distribution Fees  

Investor A

     0.25 %      N/A  

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

For the year ended May 31, 2025, the following table shows the class specific service and distribution fees borne directly by each share class of the Fund:

 

   
     Investor A  

Service and distribution — class specific

   $ 865  

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 fee, which is shown as administration in the Statement of Operations, is paid at the annual rates below:

 

   
Average Daily Net Assets   Administration Fees  

First $500 million

     0.0425 % 

$500 million - $1 billion

     0.0400  

$1 billion - $2 billion

     0.0375  

$2 billion - $4 billion

     0.0350  

$4 billion - $13 billion

     0.0325  

Greater than $13 billion

     0.0300  

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

For the year ended May 31, 2025, the Fund paid the following to the Manager in return for these services, which are included in administration — class specific in the Statement of Operations:

 

               
     Institutional              Investor A              Class K              Total  

Administration — class specific

   $  23              $  69              $  2,306              $  2,398  

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Fund with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended May 31, 2025, the Fund did not pay any amounts to affiliates in return for these services.

For the year ended May 31, 2025, the following table shows the class specific transfer agent fees borne directly by each share class of the Fund:

 

         
     Institutional      Investor A      Class K      Total  

Transfer agent — class specific

   $  161      $  547      $  93      $  801  

Other Fees: For the year ended May 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of the Fund’s Investor A Shares for a total of $5.

Expense Limitations, Waivers, Reimbursements, and Recoupments: The Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees the Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the trustees who are not “interested persons” of the Trust, as defined in the 1940 Act (“Independent Trustees”), or by a vote of a majority of the outstanding voting securities of the Fund. The amount of waivers and/or reimbursements of fees and expenses made

 

 

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Notes to Financial Statements (continued)

 

pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended May 31, 2025, there were no fees waived by the Manager pursuant to this arrangement.

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of the Fund’s assets invested in affiliated equity and fixed-income mutual funds, and affiliated exchange-traded funds that have a contractual management fee through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund. This amount is included in fees waived and/or reimbursed by the Manager in the Statement of Operations. For the year ended May 31, 2025, there were no fees waived by the Manager pursuant to this arrangement.

The Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of the Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

     
Institutional   Investor A     Class K 

1.61%

     1.86 %    1.56%

The Manager has agreed not to reduce or discontinue these contractual expense limitations through June 30, 2026, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of the Fund.

For the year ended May 31, 2025, the Fund waived and/or reimbursed the Manager investment advisory fees and other expenses of $276,520, which is included in fees waived and/or reimbursed by the Manager in the Statement of Operations.

The Fund also had a waiver of administration fees, which are included in Administration fees waived in the Statement of Operations. For the year ended May 31, 2025, the amount was $3,663.

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific and transfer agent fees waived and/or reimbursed by the Manager — class specific, respectively, in the Statement of Operations. For the year ended May 31, 2025, class specific expense waivers and/or reimbursements were as follows:

 

         
     Institutional      Investor A      Class K      Total  

Administration fees waived by the Manager — class specific

   $ 23      $ 48      $  2,305      $  2,376  

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     103        408        93        604  

With respect to the contractual expense limitation, 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 current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) the Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as the Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time. Effective June 14, 2030, the repayment arrangement between the Fund and the Manager pursuant to which the Fund may be required to repay amounts waived and/or reimbursed under the Fund’s contractual caps on net expenses will be terminated.

As of May 31, 2025, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement were as follows:

 

     Expiring May 31,  
Fund Level/Share Class   2026      2027  

Fund Level

   $  207,693      $  280,183  

Institutional

     95        126  

Investor A

     96        456  

Class K

     2,223        2,399  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Fund, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Fund is responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Fund bears to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, the money market fund will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   29

Notes to Financial Statements (continued)

 

fee is less than 0.01% of the value of the shares redeemed. The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.

Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral, (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. The Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, the Fund retains 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, the Fund, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 84% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2025, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, the Fund would retain for the remainder of that calendar year securities lending income in an amount equal to 81% of securities lending income (which excluded collateral investment fees ), and this amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by the Fund is shown as securities lending income — affiliated — net in the Statement of Operations. For the year ended May 31, 2025, the Fund paid BIM $5 for securities lending agent services.

Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the SEC, the Fund could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by the Fund’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.

During the period ended March 3, 2025, the Fund did not participate in the Interfund Lending Program.

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

7. PURCHASES AND SALES

For the year ended May 31, 2025, purchases and sales of investments, excluding short-term securities, were $254,140 and $217,336, respectively.

8. INCOME TAX INFORMATION

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

The Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on the Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on the Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Fund as of May 31, 2025, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Fund’s financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of date of these financial statements, all of which are subject to change, possibly with retroactive effect which may impact the Fund’s NAV.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, permanent differences attributable to net operating losses were reclassified to the following accounts:

 

     
Fund Name   Paid-in capital     Accumulated earnings (loss)  

U.S. Insights Long/Short Equity

   $  (335,242 )    $ 335,242  

 

 

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Notes to Financial Statements (continued)

 

The tax character of distributions paid was as follows:

 

     
     Year Ended
05/31/25		      Year Ended
05/31/24		  

Ordinary income

   $ 1,162,992      $  938,434  

Long-term capital gains

     202,247        —  
 

 

 

     

 

 

  
  $ 1,365,239      $ 938,434  
 

 

 

     

 

 

  

 

  

As of May 31, 2025, the tax components of accumulated earnings (loss) were as follows:

 

 

  
Fund Name   Net Unrealized
Gains (Losses)(a) 		      Qualified Late-Year
Capital Losses(b) 		    Qualified Late-Year
Ordinary Losses(b) 		    Total  

 

  

U.S. Insights Long/Short Equity

   $  10,688      $  (31,531 )    $  (169,163 )    $  (190,006 ) 

 

  

 

(a) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the accounting for swap agreements.

 
(b) 

The Fund has elected to defer these qualified late-year losses and recognize such losses in the next taxable year.

 

As of May 31, 2025, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

Fund Name   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		      Net Unrealized
Appreciation
(Depreciation)		  

U.S. Insights Long/Short Equity

   $  10,592,918      $  585,574      $  (574,864)      $  10,710  

9. BANK BORROWINGS

The Trust, on behalf of the Fund, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Fund may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Fund, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2026 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2025, the Fund did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, the Fund invests in securities or other instruments and may enter into certain transactions, and such activities subject the Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Fund and its investments. The Fund’s prospectus provides details of the risks to which the Fund is subject.

The Fund may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.

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

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. The Fund may invest in illiquid investments. An illiquid investment is any investment that the Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. The Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause the Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of the Fund may lose value, regardless of the individual results of the securities and other instruments in which the Fund invests. The Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   31

Notes to Financial Statements (continued)

 

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

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

With exchange-traded 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 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.

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with the fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within the Fund’s portfolio are disclosed in its Schedule of Investments.

The Fund invests a significant portion of its assets in 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 decrease as interest rates rise and increase as interest rates fall. The Fund may be subject to a greater risk of rising interest rates during a period of historically low interest rates. Changing interest rates may have unpredictable effects on markets, may result in heightened market volatility, and could negatively impact the Fund’s performance.

The Fund invests a significant portion of its assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate, it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Fund invests.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     Year Ended 05/31/25     Period from 06/13/23(a)
to 05/31/24		  
Share Class   Shares     Amount     Shares      Amount  

Institutional

         

Shares sold

     —     $ —       10,000      $ 100,000  

Shares issued in reinvestment of distributions

     1,291       12,993       915        9,320  
 

 

 

    

 

 

    

 

 

     

 

 

  
    1,291     $ 12,993       10,915      $ 109,320  
 

 

 

    

 

 

    

 

 

     

 

 

  

Investor A

         

Shares sold and automatic conversion of shares

     3,843     $ 40,718       34,230      $ 356,000  

Shares issued in reinvestment of distributions

     4,483       45,122       1,366        13,901  

Shares redeemed

     (12,463 )       (120,059 )      —        —  
 

 

 

    

 

 

    

 

 

     

 

 

  
    (4,137 )    $ (34,219 )      35,596      $ 369,901  
 

 

 

    

 

 

    

 

 

     

 

 

  

 

 

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Notes to Financial Statements (continued)

 

     Year Ended 05/31/25      Period from 06/13/23(a)
to 05/31/24		  
Share Class   Shares      Amount      Shares      Amount  

Class K

           

Shares sold

     —      $ —        980,000      $  9,800,000  

Shares issued in reinvestment of distributions

     126,436        1,274,478        89,903        915,213  
 

 

 

     

 

 

     

 

 

     

 

 

  
    126,436      $ 1,274,478        1,069,903      $ 10,715,213  
 

 

 

     

 

 

     

 

 

     

 

 

  
    123,590      $  1,253,252        1,116,414      $  11,194,434  
 

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Commencement of operations.

 

As of May 31, 2025, shares owned by BlackRock Financial Management, Inc., an affiliate of the Fund, were as follows:

 

Share Class       

Institutional

     12,206  

Investor A

     12,183  

Class K

     1,196,339  

12. SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   33

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock U.S. Insights Long/Short Equity Fund and the Board of Trustees of BlackRock FundsSM:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of BlackRock U.S. Insights Long/Short Equity Fund of BlackRock FundsSM (the “Fund”), including the schedule of investments, as of May 31, 2025, the related statement of operations for the year then ended, the statements of changes in net assets and the financial highlights for the year then ended and for the period from June 13, 2023 (commencement of operations) through May 31, 2024, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of May 31, 2025, and the results of its operations for the year then ended, and the changes in its net assets and the financial highlights for the year then ended and for the period from June 13, 2023 (commencement of operations) through May 31, 2024, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2025

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

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Important Tax Information (unaudited)

 

The Fund hereby designates the following amount, or maximum amount allowable by law, as capital gain dividends, subject to a long-term capital gains tax rate as noted below, for the fiscal year ended May 31, 2025:

 

   
Fund Name   20% Rate
Long-Term
Capital Gain
Dividends		  

BlackRock U.S. Insights Long/Short Equity Fund

   $ 202,247  

The Fund hereby designates the following amount, or maximum amount allowable by law, as qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended May 31, 2025:

 

   
Fund Name   Qualified
Short-Term
Capital Gains		  

BlackRock U.S. Insights Long/Short Equity Fund

   $ 112,717  

 

 

I M P O R T A N T  T A X  I N F O R M A T I O N

   35

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement

 

The Board of Trustees (the “Board”, the members of which are referred to as “Board Members”) of BlackRock Funds (the “Trust”) met on April 22, 2025 (the “April Meeting”) and May 20-21, 2025 (the “May Meeting”) to consider the approval to continue the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of BlackRock U.S. Insights Long/Short Equity Fund (the “Fund”), and BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor. The Board also considered the approval to continue the sub-advisory agreement (the “Sub-Advisory Agreement”) between the Manager and BlackRock International Limited (the “Sub-Advisor”) with respect to the Fund. The Manager and the Sub-Advisor are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreement are referred to herein as the “Agreements.”

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Board considers the approval of the continuation of the Agreements for the Fund on an annual basis. The Board Members who are not “interested persons” of the Trust, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board Members”). The Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to the Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Board had four quarterly meetings per year, as well as numerous ad hoc meetings and executive sessions throughout the year, as needed. The committees of the Board similarly met throughout the year. The Board also held the April Meeting to consider specific information regarding the renewal of the Agreements. In considering the renewal of the Agreements, the Board assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Board, acting directly and through its committees, considered information that was relevant to its annual consideration of the renewal of the Agreements, including the services and support provided by BlackRock to the Fund and its shareholders. BlackRock also furnished additional information to the Board in response to specific questions from the Board. Among the matters the Board considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ investment performance analyses, and the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and the Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as applicable; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of the Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Board received and reviewed materials specifically relating to the renewal of the Agreements. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist its deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding the Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of the Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Fund; (g) a summary of aggregate amounts paid by the Fund to BlackRock; (h) sales and redemption data regarding the Fund’s shares; and (i) various additional information requested by the Board as appropriate regarding BlackRock’s and the Fund’s operations.

At the April Meeting, the Board reviewed materials relating to its consideration of the Agreements and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting, and such responses were reviewed by the Board Members.

At the May Meeting, the Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of the Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated profits realized by BlackRock and its affiliates from their relationship with the Fund; (d) the Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Fund; and (g) other factors deemed relevant by the Board Members.

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. The Board evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to the Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

 

 

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Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

A. Nature, Extent and Quality of the Services Provided by BlackRock

The Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the Fund. Throughout the year, the Board compared Fund performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Board met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. The Board also reviewed the materials provided by the Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

The Board considered, among other factors, with respect to BlackRock: the experience of the Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of certain trading portfolio management, operations and/or information systems owned by BlackRock commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Board also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. The Board engaged in a review of BlackRock’s compensation structure with respect to the Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Board considered the nature and quality of the administrative and other non-investment advisory services provided to the Fund. BlackRock and its affiliates provide the Fund with certain administrative, shareholder and other services (in addition to any such services provided to the Fund by third parties) and officers and other personnel as are necessary for the operations of the Fund. In particular, BlackRock and its affiliates provide the Fund with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers including, among others, the Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Fund, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing the Fund’s distribution partners, and shareholder call center and other services. The Board reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. The Board also considered the operation of BlackRock’s business continuity plans.

The Board noted that the engagement of the Sub-Advisor with respect to the Fund facilitates the provision of investment advice and trading by investment personnel out of non-U.S. jurisdictions. The Board considered that this arrangement provides additional flexibility to the portfolio management team, which may benefit the Fund and its shareholders.

B. The Investment Performance of the Fund

The Board, including the Independent Board Members, reviewed and considered the performance history of the Fund throughout the year and at the April Meeting. The Board was provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the April meeting. In preparation for the April Meeting, the Board was also provided with reports independently prepared by Broadridge, which included an analysis of the Fund’s performance as of December 31, 2024, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of the Fund throughout the year.

In evaluating performance, the Board focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board noted that for each of the one-year and since-inception periods reported, the Fund ranked in the fourth quartile against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable periods. The Board was informed that, among other things, underperformance was driven by a combination of a below target beta for the first half of 2024 followed by weakness across security selection the second half of 2024. The Board and BlackRock discussed BlackRock’s strategy for improving the Fund’s investment performance. Discussions covered topics such as performance attribution, the Fund’s investment personnel, and the resources appropriate to support the Fund’s investment processes.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Fund

The Board, including the Independent Board Members, reviewed the Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared the Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual

 

 

D I S C L O S U R E  O F  I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T  A N D  S U B - A D V I S O R Y  A G R E E M E N T

   37

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreement  (continued)

 

management fee rate gives effect to any management fee reimbursements or waivers. The Board considered that the fee and expense information in the Broadridge report for the Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of market volatility. The Board also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison is subject to Broadridge’s defined peer selection criteria and methodology. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to the Fund. The Board reviewed BlackRock’s estimated profitability with respect to the Fund and other funds the Board currently oversees for the year ended December 31, 2024 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized the limitations of calculating and comparing profitability at the individual fund level.

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Board considered the differences between BlackRock and these other firms, including the contribution of BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Board noted that, in general, individual fund or product line profitability of other advisors is not publicly available.

The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time and resources, assumption of risk, and liability profile in servicing the Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Fund’s contractual management fee rate ranked in the fourth quartile, and that the actual management fee rate and total expense ratio ranked in the first and third quartiles, respectively, relative to the Fund’s Expense Peers. The Board also noted that the Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Fund increases above certain contractually specified levels. The Board additionally noted that the breakpoints can, conversely, adjust the advisory fee rate upward as the size of the Fund decreases below certain contractually specified levels. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale

The Board, including the Independent Board Members, considered the extent to which any economies of scale might benefit the Fund in a variety of ways as the assets of the Fund increase. The Board considered multiple factors, including the advisory fee rate and breakpoints, unitary fee structure, fee waivers, and/or expense caps, as applicable. The Board considered the Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

The Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Fund, including for administrative, distribution, securities lending and cash management services. With respect to securities lending, during the year the Board also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as securities lending agent. The Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the Agreements, the Board also received information regarding BlackRock’s brokerage and soft dollar practices. The Board received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Board noted the competitive nature of the mutual fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board’s year-long deliberative process, the Board, including the Independent Board Members, unanimously approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of the Fund, for a one-year term ending June 30, 2026, and the Sub-Advisory Agreement between the Manager and the Sub-Advisor, with respect to the Fund, for a one-year term ending June 30, 2026. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent legal counsel throughout the deliberative process.

 

 

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Additional Information

 

Changes in and Disagreements with Accountants

Not applicable.

Proxy Results

Not applicable.

Remuneration Paid to Trustees, Officers, and Others

Compensation to the independent directors/trustees of the Trust is paid by the Trust, on behalf of the Fund.

General Information

Quarterly performance, shareholder reports, semi-annual and annual financial statements, current net asset value and other information regarding the Fund may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Fund and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and prospectuses by enrolling in the electronic delivery program.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1. Access the BlackRock website at blackrock.com

2. Select “Access Your Account”

3. Next, select “eDelivery” in the “Related Resources” box and follow the sign-up instructions.

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

 

 

A D D I T I O N A L  I N F O R M A T I O N

   39

Additional Information  (continued)

 

Fund and Service Providers

 

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Adviser

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

Accounting Agent and Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

The Bank of New York Mellon

New York, NY 10286

Distributor

BlackRock Investments, LLC

New York, NY 10001

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02110

Legal Counsel

Sidley Austin LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

 

 

 

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Glossary of Terms Used in these Financial Statements

 

 

Currency Abbreviation
USD   United States Dollar

 

Portfolio Abbreviation

1D FEDL01   USD - 1D Overnight Fed Funds Effective Rate
1D OBFR01   USD - 1D Overnight Bank Funding Rate
ADR   American Depositary Receipt
NVS   Non-Voting Shares
OTC   Over-the-Counter

 

 

G L O S S A R Y  O F  T E R M S  U S E D  I N  T H E S E  F I N A N C I A L  S T A T E M E N T S

   41

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Want to know more?

blackrock.com | 800-441-7762

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

 

 

LOGO

   LOGO

 

LOGO

  MAY 31, 2025

 

  

2025 Annual Financial Statements

and Additional Information

 

BlackRock FundsSM

 

·  

BlackRock Advantage International Fund

·  

BlackRock Advantage Large Cap Growth Fund

·  

BlackRock Advantage Small Cap Core Fund

BlackRock Large Cap Series Funds, Inc.

 

·  

BlackRock Advantage Large Cap Core Fund

·  

BlackRock Advantage Large Cap Value Fund

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee

 

Table of Contents

 

      Page  

Derivative Financial Instruments

      3  

Schedules of Investments

      4  

Statements of Assets and Liabilities

      36  

Statements of Operations

      38  

Statements of Changes in Net Assets

      40  

Financial Highlights

      43  

Notes to Financial Statements

      67  

Report of Independent Registered Public Accounting Firm

      82  

Important Tax Information

      83  

Disclosure of Investment Advisory Agreements

      85  

Additional Information

      89  

Glossary of Terms Used in these Financial Statements

      91  

 

 

2    

Derivative Financial Instruments

 

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. Pursuant to Rule 18f-4 under the 1940 Act, among other things, the Funds must either use derivative financial instruments with embedded leverage in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

 

 

D E R I V A T I V E  F I N A N C I A L  I N S T R U M E N T S

   3

Schedule of Investments

May 31, 2025

   

BlackRock Advantage International Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Australia — 6.0%  

AGL Energy Ltd.

     441,915     $ 2,892,890  

ANZ Group Holdings Ltd.

     773,667       14,477,811  

Aristocrat Leisure Ltd.

     541,252       21,748,871  

ASX Ltd.

     565       25,960  

Aurizon Holdings Ltd.

     971,668       1,847,792  

BHP Group Ltd.

     1,148,996       28,225,100  

Commonwealth Bank of Australia

     554,747       62,946,523  

Computershare Ltd.

     195,095       5,051,166  

Evolution Mining Ltd.

     1,379,070       7,918,115  

Glencore PLC

     7,714,532       29,353,368  

Insurance Australia Group Ltd.

     507,953       2,829,160  

JB Hi-Fi Ltd.

     51,744       3,594,741  

Macquarie Group Ltd.

     135,750       18,726,782  

National Australia Bank Ltd.

     6,370       155,887  

Northern Star Resources Ltd.

     1,431,815       19,470,851  

Pro Medicus Ltd.

     19,775       3,585,170  

Qantas Airways Ltd.

     922,783       6,306,434  

QBE Insurance Group Ltd.

     163,104       2,436,475  

REA Group Ltd.

     43,104       6,658,078  

Rio Tinto PLC

     77,160       4,566,486  

Rocketboots Ltd.(a)(b)

     1,389       79  

Santos Ltd.

     2,432,096       10,330,043  

SEEK Ltd.

     185,772       2,909,420  

Sonic Healthcare Ltd.

     542,798       9,336,260  

South32 Ltd.

     2,624,789       5,175,117  

Technology One Ltd.

     106,147       2,810,335  

Transurban Group

     1,154,853       10,554,297  

Wesfarmers Ltd.

     192,034       10,275,056  
   

 

 

  
       294,208,267  
Austria — 0.1%            

BAWAG Group AG(c)

     49,147       6,123,238  
   

 

 

  
Belgium — 0.4%            

Ageas SA/NV

     132,604       8,658,873  

Anheuser-Busch InBev SA/NV

     169,731       11,985,225  
   

 

 

  
      20,644,098  
Brazil — 0.1%            

Yara International ASA

     74,745       2,681,572  
   

 

 

  
China — 0.6%            

BOC Hong Kong Holdings Ltd.

     643,500       2,706,248  

Prosus NV, Class N

     453,852       23,313,561  

Yangzijiang Shipbuilding Holdings Ltd.

     1,043,900       1,710,235  
   

 

 

  
      27,730,044  
Denmark — 1.7%            

AP Moller - Maersk A/S, Class A

     364       650,138  

Danske Bank A/S

     89,506       3,429,844  

Demant A/S(a)

     49,093       1,928,067  

Genmab A/S(a)

     27,418       5,784,092  

GN Store Nord AS(a)

     223,800       3,286,881  

Novo Nordisk A/S, Class B

     778,941       55,342,075  

Pandora A/S

     18,303       3,345,668  

Tryg A/S

     75,296       1,934,546  

Vestas Wind Systems A/S

     440,734       6,970,324  
   

 

 

  
      82,671,635  
Finland — 0.3%            

Nokia Oyj

     178,431       928,608  

Nordea Bank Abp

     614,850       8,914,155  
Security   Shares     Value  
Finland (continued)            

Sampo Oyj, A Shares

     134,154     $ 1,431,715  

Wartsila Oyj Abp

     248,856       4,989,546  
   

 

 

  
      16,264,024  
France — 10.5%            

Air Liquide SA

     104,038       21,557,602  

Amundi SA(c)

     22,961       1,874,606  

AXA SA

     843,845       39,775,119  

BioMerieux

     715       95,878  

BNP Paribas SA

     343,157       30,051,804  

Bouygues SA

     22,447       978,771  

Bureau Veritas SA

     663,050       22,657,946  

Capgemini SE

     66,824       11,097,003  

Carrefour SA

     442,515       6,617,530  

Credit Agricole SA

     933,698       17,095,245  

Danone SA

     309,696       26,478,176  

Dassault Systemes SE

     401,606       15,059,600  

Eiffage SA

     39,689       5,459,055  

Engie SA

     1,365,050       29,461,892  

FDJ UNITED, Class A(c)

     36,768       1,349,351  

Gaztransport Et Technigaz SA

     15,714       2,920,107  

Hermes International SCA

     10,580       29,174,499  

Ipsen SA

     37,816       4,452,455  

L’Oreal SA

     15,741       6,662,623  

LVMH Moet Hennessy Louis Vuitton SE

     100,600       54,566,120  

Orange SA

     2,127,684       31,756,570  

Safran SA

     201,801       59,684,077  

Sanofi SA

     359,965       35,651,277  

SPIE SA

     10,943       556,264  

Thales SA

     11,430       3,500,683  

TotalEnergies SE

     540,432       31,814,238  

Valeo SE

     395,844       4,169,084  

Vallourec SACA

     5,667       95,942  

Veolia Environnement SA

     333,803       11,488,371  

Vinci SA

     24,937       3,563,140  
   

 

 

  
       509,665,028  
Germany — 10.9%            

adidas AG, Class N

     164,795       41,102,063  

Allianz SE, Registered Shares

     124,082       49,212,594  

CTS Eventim AG & Co. KGaA

     5,230       634,381  

Deutsche Bank AG, Registered Shares

     1,056,021       29,246,639  

Deutsche Telekom AG, Registered Shares

     1,523,016       57,674,236  

E.ON SE, Class N

     1,883,381       33,008,332  

Fresenius Medical Care AG

     70,726       4,017,563  

GEA Group AG

     49,142       3,291,365  

Henkel AG & Co. KGaA

     18,917       1,388,982  

Henkel AG & Co. KGaA, Preference Shares, NVS

     134,686       10,791,724  

Hugo Boss AG

     82,407       3,818,419  

Infineon Technologies AG, Class N

     25,806       1,003,330  

Mercedes-Benz Group AG, Class N

     339,872       20,323,575  

Merck KGaA

     48,109       6,304,149  

Nemetschek SE

     31,534       4,383,889  

Porsche Automobil Holding SE, Preference Shares, NVS

     13,259       530,092  

Rational AG

     3,377       2,776,677  

Rheinmetall AG

     14,951       32,043,992  

SAP SE

     442,543       133,878,183  

Scout24 SE(c)

     41,427       5,644,611  

Siemens AG, Registered Shares

     213,549       51,363,510  

Siemens Energy AG(a)

     262,764       25,678,755  

Siemens Healthineers AG(c)

     227,010       12,015,053  
   

 

 

  
      530,132,114  
 

 

 

4  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage International Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Hong Kong — 1.7%            

AIA Group Ltd.

     4,516,200     $ 37,593,427  

CK Infrastructure Holdings Ltd.

     74,000       478,189  

CLP Holdings Ltd.

     562,500       4,763,478  

Henderson Land Development Co. Ltd.

     4,000       12,483  

Jardine Matheson Holdings Ltd.

     36,800       1,641,518  

Link REIT

     1,512,600       8,005,040  

Sun Hung Kai Properties Ltd.

     561,500       6,031,449  

Swire Pacific Ltd., Class A

     210,000       1,788,875  

Techtronic Industries Co. Ltd.

     1,224,500       13,638,880  

WH Group Ltd.(c)

     10,605,000       9,754,029  

Wharf Real Estate Investment Co. Ltd.

     102,000       254,344  
   

 

 

  
      83,961,712  
India — 0.0%            

AceVector Ltd. (Acquired 05/07/14, cost $804,375)(a)(d)(e)

     172,800       60,074  
   

 

 

  
Ireland — 0.1%            

Kerry Group PLC, Class A

     61,674       6,741,869  
   

 

 

  
Israel — 0.7%            

Bank Hapoalim BM

     322,925       5,417,512  

Bank Leumi Le-Israel BM

     385,454       6,220,574  

Elbit Systems Ltd.

     1,097       440,806  

Israel Discount Bank Ltd., Class A

     316,253       2,693,331  

Mizrahi Tefahot Bank Ltd.

     107,511       6,161,782  

Nice Ltd.(a)

     87,713       14,855,746  

Nova Ltd.(a)(b)

     1,177       247,576  
   

 

 

  
       36,037,327  
Italy — 2.7%            

A2A SpA

     2,541,610       6,599,248  

Amplifon SpA

     360,919       8,296,353  

Banca Monte dei Paschi di Siena SpA

     1,155,080       9,546,489  

BPER Banca SPA

     258,670       2,297,682  

Buzzi SpA

     27,639       1,421,952  

Coca-Cola HBC AG

     95,392       4,971,124  

Enel SpA

     4,061,234       37,330,901  

Eni SpA

     141,056       2,080,160  

Ferrari NV

     1,278       611,696  

FinecoBank Banca Fineco SpA

     83,189       1,799,042  

Generali

     252,853       9,203,918  

Infrastrutture Wireless Italiane SpA(c)

     131,976       1,549,398  

Intesa Sanpaolo SpA

     3,933,615       21,960,313  

Italgas SpA

     408,040       3,356,961  

Leonardo SpA

     78,116       4,832,235  

MFE-MediaForEurope NV, Class A

     23       85  

MFE-MediaForEurope NV, Class B

     2       10  

Moncler SpA

     27,326       1,710,639  

Nexi SpA(c)

     685,811       4,126,550  

Recordati Industria Chimica e Farmaceutica SpA

     80,493       4,830,463  

Saipem SpA

     864,217       2,143,234  

Snam SpA

     163,314       977,107  

Unipol Assicurazioni SpA

     93,248       1,825,025  
   

 

 

  
      131,470,585  
Japan — 23.0%            

Aeon Co. Ltd.

     271,400       8,343,695  

AGC, Inc.

     74,100       2,197,990  

Ajinomoto Co., Inc.

     72,600       1,814,991  

Amada Co. Ltd.

     622,700       6,362,813  

Asahi Group Holdings Ltd.

     334,200       4,404,764  

Asahi Intecc Co. Ltd.

     190,600       2,955,601  

Asahi Kasei Corp.

     620,400       4,359,501  

Astellas Pharma, Inc.

     1,502,800       14,844,105  
Security   Shares     Value  
Japan (continued)            

Brother Industries Ltd.

     127,500     $ 2,175,949  

Canon, Inc.

     851,800       26,021,645  

Capcom Co. Ltd.

     4,300       127,566  

Central Japan Railway Co.

     265,500       5,800,037  

Chubu Electric Power Co., Inc.

     404,700       4,957,230  

Chugai Pharmaceutical Co. Ltd.

     235,400       12,307,070  

Concordia Financial Group Ltd.

     41,000       262,836  

Cosmo Energy Holdings Co. Ltd.

     2,900       122,320  

Dai Nippon Printing Co. Ltd.

     81,200       1,197,436  

Dai-ichi Life Holdings, Inc.

     896,800       6,999,968  

Daikin Industries Ltd.

     136,500       15,531,057  

Daito Trust Construction Co. Ltd.

     79,900       9,000,242  

Daiwa House Industry Co. Ltd.

     243,400       8,206,459  

Daiwa Securities Group, Inc.

     333,200       2,253,887  

Denso Corp.

     794,400       10,725,074  

Dentsu Group, Inc.

     13,300       287,271  

DMG Mori Co. Ltd.

     63,200       1,350,429  

East Japan Railway Co.

     50,900       1,066,752  

ENEOS Holdings, Inc.

     1,918,500       9,090,044  

FANUC Corp.

     529,600       14,134,634  

Fast Retailing Co. Ltd.

     43,400       14,456,082  

Fuji Electric Co. Ltd.

     19,300       852,517  

Fujitsu Ltd.

     429,100       9,827,415  

Fukuoka Financial Group, Inc.

     8,500       233,059  

Hamamatsu Photonics KK

     35,900       385,190  

Hitachi Ltd.

     1,411,200       39,316,497  

Horiba Ltd.

     9,300       661,720  

Hoya Corp.

     30,900       3,648,301  

Hulic Co. Ltd.

     383,300       3,880,974  

Inpex Corp.

     612,500       8,190,207  

J Front Retailing Co. Ltd.

     224,100       3,138,545  

Japan Exchange Group, Inc.

     217,400       2,381,274  

Japan Post Bank Co. Ltd.

     399,500       4,308,451  

Japan Post Holdings Co. Ltd.

     483,300       4,735,599  

Japan Post Insurance Co. Ltd.

     44,000       967,834  

Kakaku.com, Inc.

     242,200       4,130,771  

Kansai Electric Power Co., Inc. (The)

     955,000       10,835,563  

Kao Corp.

     10,200       465,644  

KDDI Corp.

     64,600       1,118,259  

Keyence Corp.

     46,200       19,337,950  

Kirin Holdings Co. Ltd.

     152,200       2,183,503  

Komatsu Ltd.

     43,700       1,328,095  

Kuraray Co. Ltd.

     12,600       159,534  

Kyocera Corp.

     503,500       6,121,860  

Kyushu Electric Power Co., Inc.

     419,900       3,606,265  

Kyushu Railway Co.

     5,000       134,237  

LY Corp.

     2,211,700       7,975,132  

Marubeni Corp.

     98,900       2,004,633  

Mazda Motor Corp.

     962,000       6,034,375  

McDonald’s Holdings Co. Japan Ltd.

     128,300       5,440,719  

MISUMI Group, Inc.

     30,400       400,974  

Mitsubishi Chemical Group Corp.

     1,376,800       7,328,749  

Mitsubishi Electric Corp.

     286,500       5,717,680  

Mitsubishi Estate Co. Ltd.

     63,900       1,161,318  

Mitsubishi HC Capital, Inc.

     437,500       3,212,520  

Mitsubishi UFJ Financial Group, Inc.

     4,048,400        56,630,287  

Mitsui & Co. Ltd.

     932,200       19,465,417  

Mitsui Fudosan Co. Ltd.

     1,225,900       11,741,042  

Mizuho Financial Group, Inc.

     676,500       18,812,292  

MS&AD Insurance Group Holdings, Inc.

     391,300       9,320,170  

Murata Manufacturing Co. Ltd.

     1,709,300       24,799,960  

NEC Corp.

     673,000       17,567,544  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   5

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage International Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Japan (continued)            

NH Foods Ltd.

     400     $ 14,064  

Nippon Express Holdings, Inc.

     115,200       2,137,324  

Nippon Telegraph & Telephone Corp.

     27,467,600       30,582,237  

Nissan Chemical Corp.

     123,700       3,718,740  

Nomura Holdings, Inc.

     3,516,300       21,487,659  

Nomura Real Estate Holdings, Inc.

     1,051,100       6,154,851  

Nomura Research Institute Ltd.

     205,200       7,910,048  

Obayashi Corp.

     368,400       5,558,570  

Obic Co. Ltd.

     130,200       4,751,721  

Olympus Corp.

     655,300       8,396,355  

Ono Pharmaceutical Co. Ltd.

     269,600       2,935,480  

ORIX Corp.

     756,000       16,021,040  

Osaka Gas Co. Ltd.

     15,200       386,998  

Otsuka Corp.

     168,500       3,463,534  

Otsuka Holdings Co. Ltd.

     150,800       7,666,669  

Pan Pacific International Holdings Corp.

     115,400       3,779,072  

Panasonic Holdings Corp.

     1,717,800       19,688,511  

Rakuten Group, Inc.(a)

     468,100       2,576,374  

Recruit Holdings Co. Ltd.

     682,400        40,643,906  

Resona Holdings, Inc.

     474,800       4,208,198  

Rohto Pharmaceutical Co. Ltd.

     18,600       262,112  

Sanwa Holdings Corp.

     24,200       833,140  

SBI Holdings, Inc.

     2,600       78,743  

Secom Co. Ltd.

     184,700       6,725,694  

Sega Sammy Holdings, Inc.

     35,700       673,368  

Sekisui House Ltd.

     224,000       5,079,677  

Shimadzu Corp.

     28,600       690,553  

Shimizu Corp.

     501,300       5,511,470  

Shin-Etsu Chemical Co. Ltd.

     1,212,600       38,718,525  

Shionogi & Co. Ltd.

     495,400       8,271,959  

Skylark Holdings Co. Ltd.

     182,300       4,025,478  

SMC Corp.

     32,500       12,186,263  

SoftBank Corp.

     10,529,600       16,179,344  

SoftBank Group Corp.

     155,300       8,112,618  

Sojitz Corp.

     200,300       4,940,193  

Sompo Holdings, Inc.

     228,100       6,902,615  

Sony Group Corp.

     1,949,500       52,180,183  

Sumitomo Chemical Co. Ltd.

     1,684,300       4,038,866  

Sumitomo Corp.

     503,300       12,817,326  

Sumitomo Mitsui Financial Group, Inc.

     2,161,700       55,536,103  

Sumitomo Mitsui Trust Group, Inc.

     300,800       8,139,560  

Sysmex Corp.

     43,600       731,617  

T&D Holdings, Inc.

     112,100       2,564,583  

Takashimaya Co. Ltd.

     190,900       1,521,585  

Takeda Pharmaceutical Co. Ltd.

     1,019,500       30,610,591  

TDK Corp.

     814,600       8,920,050  

Terumo Corp.

     453,600       8,326,653  

Tohoku Electric Power Co., Inc.

     528,000       3,668,978  

Tokio Marine Holdings, Inc.

     458,300       19,382,575  

Tokyo Electron Ltd.

     190,700       30,009,511  

Tokyo Gas Co. Ltd.

     233,900       7,843,280  

Tokyo Tatemono Co. Ltd.

     178,600       3,163,307  

Tokyu Fudosan Holdings Corp.

     609,900       4,443,733  

Tosoh Corp.

     42,300       626,020  

TOTO Ltd.

     4,900       125,327  

Toyota Motor Corp.

     1,273,200       24,239,447  

Toyota Tsusho Corp.

     522,100       11,033,736  

Unicharm Corp.

     64,800       515,453  

West Japan Railway Co.

     6,500       140,077  

ZOZO, Inc.

     600       6,501  
   

 

 

  
       1,122,777,689  
Security   Shares     Value  
Luxembourg — 0.0%            

SES SA

     9     $ 51  
   

 

 

  
Mexico — 0.1%            

Fresnillo PLC

     276,151       4,342,248  
   

 

 

  
Netherlands — 4.4%            

Adyen NV(a)(c)

     4,477       8,580,078  

Aegon Ltd.

     279,513       2,001,238  

Argenx SE(a)

     11,593       6,651,745  

ASM International NV

     9,426       5,130,064  

ASML Holding NV

     143,446       105,682,437  

ASR Nederland NV

     71,481       4,583,595  

Euronext NV(c)

     29,595       4,823,369  

Heineken NV

     39,580       3,531,032  

ING Groep NV

     1,416,055       30,080,060  

Koninklijke Ahold Delhaize NV

     330,006       13,927,580  

NN Group NV

     140,383       8,833,124  

Wolters Kluwer NV, Class C

     103,797       18,406,292  
   

 

 

  
       212,230,614  
New Zealand — 1.0%            

Xero Ltd.(a)

     425,351       50,526,807  
   

 

 

  
Norway — 0.6%            

Aker BP ASA

     239,716       5,515,966  

DNB Bank ASA

     71,491       1,912,084  

Gjensidige Forsikring ASA

     199       5,038  

Kongsberg Gruppen ASA

     89,576       15,776,145  

Mowi ASA

     93,554       1,746,892  

Salmar ASA

     20,184       899,712  

Telenor ASA

     174,787       2,683,687  

Var Energi ASA

     866,539       2,514,314  
   

 

 

  
      31,053,838  
Portugal — 0.0%            

EDP SA

     61,680       246,187  

Jeronimo Martins SGPS SA

     1,674       42,195  
   

 

 

  
      288,382  
Singapore — 1.7%            

DBS Group Holdings Ltd.

     840,560       29,001,409  

Singapore Technologies Engineering Ltd.

     699,800       4,230,811  

Singapore Telecommunications Ltd.

     13,453,700       39,720,006  

STMicroelectronics NV

     277,571       6,968,330  

United Overseas Bank Ltd.

     171,900       4,722,051  
   

 

 

  
      84,642,607  
Spain — 1.9%            

ACS Actividades de Construccion y Servicios SA

     85,762       5,633,381  

Banco Bilbao Vizcaya Argentaria SA

     106,335       1,596,296  

Banco Santander SA

     3,497,514       27,901,959  

Bankinter SA

     799,189       10,282,105  

Endesa SA

     178,578       5,457,151  

Industria de Diseno Textil SA

     409,235       22,170,421  

Telefonica SA

     3,193,032       17,102,436  
   

 

 

  
      90,143,749  
Sweden — 2.6%            

AddTech AB, B Shares

     62,743       2,156,275  

Alfa Laval AB

     166,309       7,075,524  

Assa Abloy AB, Class B

     504,218       16,004,176  

Atlas Copco AB, B Shares

     536,733       7,640,811  

Atlas Copco AB, Class A

     1,351,912       21,715,545  

Evolution AB(c)

     106,222       7,286,025  

Getinge AB, B Shares

     81,927       1,581,396  

Hexagon AB, B Shares

     588,172       5,929,642  

Industrivarden AB, A Shares

     20,151       730,538  
 

 

 

6  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage International Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Sweden (continued)            

Investment AB Latour, B Shares

     10,819     $ 285,324  

Lifco AB, B Shares

     71       2,891  

Sandvik AB

     411,775       8,988,084  

Securitas AB, B Shares

     65,164       963,684  

Skanska AB, B Shares

     71,387       1,698,320  

Swedbank AB, A Shares

     388,978       10,532,496  

Swedish Orphan Biovitrum AB(a)

     111,218       3,399,678  

Tele2 AB, B Shares

     140,923       2,108,517  

Telefonaktiebolaget LM Ericsson, B Shares

     2,381,227       20,270,356  

Trelleborg AB, B Shares

     9,445       345,645  

Volvo AB, B Shares

     223,371       6,189,308  
   

 

 

  
       124,904,235  
Switzerland — 5.6%            

ABB Ltd., Registered Shares

     1,156,503       65,513,231  

Accelleron Industries AG

     76,961       4,444,332  

Belimo Holding AG, Registered Shares

     6,504       6,293,303  

Chocoladefabriken Lindt & Spruengli AG, NVS

     475       7,648,267  

Chocoladefabriken Lindt & Spruengli AG, Registered Shares

     16       2,513,761  

Cie Financiere Richemont SA, Registered Shares

     1,163       219,466  

Clariant AG, Registered Shares

     129,832       1,464,224  

DSM-Firmenich AG

     13,389       1,490,450  

Flughafen Zurich AG, Registered Shares

     17,220       4,778,142  

Givaudan SA, Registered Shares

     6,908       34,740,966  

Helvetia Holding AG, Registered Shares

     19,571       4,639,097  

Kuehne + Nagel International AG, Registered Shares

     4,557       1,025,401  

Logitech International SA, Registered Shares

     163,159       13,595,343  

Medmix AG(c)

     2       26  

Nestlé SA, Registered Shares

     303,344       32,317,402  

Schindler Holding AG, NVS

     5,747       2,047,901  

Schindler Holding AG, Registered Shares

     5,502       1,892,139  

SGS SA, Registered Shares

     167,304       17,473,789  

Sonova Holding AG, Registered Shares

     6,102       1,916,655  

UBS Group AG, Registered Shares

     1,024,214       32,672,980  

Zurich Insurance Group AG, Class N

     49,799       34,930,900  
   

 

 

  
      271,617,775  
United Kingdom — 14.0%            

3i Group PLC

     1,138       62,505  

Admiral Group PLC

     17,999       813,034  

Ashtead Group PLC

     13,477       789,153  

AstraZeneca PLC

     505,339       74,024,111  

BAE Systems PLC

     1,515,458       38,856,156  

Barclays PLC

     8,904,488       39,433,150  

Barratt Redrow PLC

     358,314       2,227,102  

Beazley PLC

     31,514       401,587  

Berkeley Group Holdings PLC

     57,306       3,250,424  

British American Tobacco PLC

     144,707       6,514,479  

Burberry Group PLC

     12,499       174,854  

Centrica PLC

     1,358,611       2,905,130  

CK Hutchison Holdings Ltd.

     3,970,500       22,201,907  

Close Brothers Group PLC(a)

     15       67  

Compass Group PLC

     296,525       10,426,669  

ConvaTec Group PLC(c)

     440,162       1,721,446  

Direct Line Insurance Group PLC

     257,173       1,034,271  

Drax Group PLC

     25,801       230,572  

Experian PLC

     718,678       35,793,976  

Halma PLC

     37,078       1,453,609  

HSBC Holdings PLC

     4,861,955       57,278,833  

IG Group Holdings PLC

     351,196       5,312,468  

IMI PLC

     69,544       1,865,626  

Imperial Brands PLC

     725,850       27,527,641  
Security   Shares     Value  
United Kingdom (continued)            

Informa PLC

     712,619     $ 7,555,979  

InterContinental Hotels Group PLC

     21,428       2,455,394  

International Consolidated Airlines Group SA

     2,959,786       13,023,686  

Intertek Group PLC

     244,011       15,755,446  

J Sainsbury PLC

     1,728,579       6,648,131  

Lloyds Banking Group PLC

     39,904       41,564  

London Stock Exchange Group PLC

     300,095       45,661,524  

NatWest Group PLC

     4,492,705       31,902,041  

Next PLC

     10,714       1,859,383  

RELX PLC

     398,631       21,452,001  

Rightmove PLC

     164,652       1,659,094  

Rolls-Royce Holdings PLC

     4,127,061       48,026,536  

Sage Group PLC (The)

     1,179,599       19,399,999  

Shell PLC

     1,984,553       65,480,186  

Smith & Nephew PLC

     262,802       3,813,570  

Smiths Group PLC

     435,576       12,661,173  

Standard Chartered PLC

     306,745       4,785,610  

Taylor Wimpey PLC

     74,879       120,712  

Tesco PLC

     1,444,078       7,556,326  

Unilever PLC

     383,002       24,374,766  

Vodafone Group PLC

     14,595,705       15,136,691  

Weir Group PLC (The)

     1,459       47,759  
   

 

 

  
      683,716,341  
United States — 7.2%            

BP PLC

     4,174,414       20,296,417  

Carnival PLC(a)

     75,846       1,578,971  

CSL Ltd.

     110,926       17,700,481  

GSK PLC

     1,960,509       39,825,677  

Holcim AG

     270,126       29,932,714  

James Hardie Industries PLC(a)

     35,473       816,126  

Novartis AG, Registered Shares

     933,817       107,789,679  

QIAGEN NV

     31,514       1,422,514  

Roche Holding AG, NVS

     281,762       91,276,037  

Roche Holding AG

     9,008       3,077,983  

Schneider Electric SE

     116,601       29,419,806  

Stellantis NV

     526,952       5,371,473  

Tenaris SA

     242,309       4,058,067  
   

 

 

  
      352,565,945  
   

 

 

  

Total Long-Term Investments — 97.9%
(Cost: $4,092,285,006)

 

     4,777,201,868  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 2.9%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(f)(g)(h)

     25,902,614       25,912,976  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(f)(g)

     115,902,006       115,902,006  
   

 

 

  

Total Short-Term Securities — 2.9%
(Cost: $141,814,982)

 

     141,814,982  
   

 

 

  

Total Investments — 100.8%
(Cost: $4,234,099,988)

 

     4,919,016,850  

Liabilities in Excess of Other Assets — (0.8)%

 

     (38,387,790 ) 
   

 

 

  

Net Assets — 100.0%

     $  4,880,629,060  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

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

 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   7

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage International Fund

 

(e) 

Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $60,074, representing less than 0.05% of its net assets as of period end, and an original cost of $804,375.

(f) 

Affiliate of the Fund.

(g) 

Annualized 7-day yield as of period end.

(h) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		    

Change in
Unrealized
Appreciation
(Depreciation)

     Value at
05/31/25		    

Shares

Held at
05/31/25

     Income     Capital Gain
Distributions
from
Underlying
Funds		         
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $ 760,404     $  25,152,140 (a)    $   —     $ 432      $ —     $ 25,912,976       25,902,614     $ 2,129 (b)    $ —     
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     60,864,854       55,037,152 (a)      —       —       —       115,902,006       115,902,006       3,205,953       —     
         

 

 

      

 

 

      

 

 

    

 

 

     
          $ 432     $ —     $  141,814,982       $  3,208,082     $   —     
         

 

 

      

 

 

      

 

 

    

 

 

     

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

            

MSCI EAFE Index

      540        06/20/25      $ 70,322      $ 151,235  
           

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 151,235      $ —      $ —      $ —      $ 151,235  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

 

 

8  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage International Fund

 

For the period ended May 31, 2025, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ 4,218,085      $ —      $ —      $ —      $ 4,218,085  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ (51,293 )     $ —      $ —      $ —      $ (51,293 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

  

Futures contracts:

   

Average notional value of contracts — long

    $ 76,771,305  

 

  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1            Level 2             Level 3             Total  

 

  

Assets

                   

Investments

                   

Long-Term Investments

                   

Common Stocks

                   

Australia

   $ 26,039        $ 294,182,228         $ —         $ 294,208,267  

Austria

     —          6,123,238           —           6,123,238  

Belgium

     —          20,644,098           —           20,644,098  

Brazil

     —          2,681,572           —           2,681,572  

China

     —          27,730,044           —           27,730,044  

Denmark

     1,934,546          80,737,089           —           82,671,635  

Finland

     —          16,264,024           —           16,264,024  

France

     —          509,665,028           —           509,665,028  

Germany

     —          530,132,114           —           530,132,114  

Hong Kong

     —          83,961,712           —           83,961,712  

India

     —          —           60,074           60,074  

Ireland

     —          6,741,869           —           6,741,869  

Israel

     —          36,037,327           —           36,037,327  

Italy

     —          131,470,585           —           131,470,585  

Japan

     1,412,031          1,121,365,658           —           1,122,777,689  

Luxembourg

     —          51           —           51  

Mexico

     —          4,342,248           —           4,342,248  

Netherlands

     —          212,230,614           —           212,230,614  

New Zealand

     —          50,526,807           —           50,526,807  

Norway

     904,750          30,149,088           —           31,053,838  

Portugal

     —          288,382           —           288,382  

Singapore

     —          84,642,607           —           84,642,607  

Spain

     —          90,143,749           —           90,143,749  

Sweden

     2,891          124,901,344           —           124,904,235  

Switzerland

     —          271,617,775           —           271,617,775  

United Kingdom

     —          683,716,341           —           683,716,341  

United States

     —          352,565,945           —           352,565,945  

Short-Term Securities

                   

Money Market Funds

     141,814,982          —           —           141,814,982  
 

 

 

       

 

 

        

 

 

        

 

 

  
  $ 146,095,239        $ 4,772,861,537         $ 60,074         $ 4,919,016,850  
 

 

 

       

 

 

        

 

 

        

 

 

  

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   9

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage International Fund

 

Fair Value Hierarchy as of Period End (continued)

 

 

  
     Level 1             Level 2             Level 3             Total  

 

  

Derivative Financial Instruments(a)

                     

Assets

                     

Equity Contracts

    $ 151,235         $    —         $    —         $ 151,235  
  

 

 

        

 

 

        

 

 

        

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

10  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments

May 31, 2025

   

BlackRock Advantage Large Cap Growth Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 0.2%  

HEICO Corp., Class A

     673     $ 158,720  

Lockheed Martin Corp.

     4,145       1,999,465  
   

 

 

  
      2,158,185  
Air Freight & Logistics — 0.2%            

FedEx Corp.

     14,917       3,253,398  
   

 

 

  
Automobile Components — 0.0%            

BorgWarner, Inc.

     18,677       618,022  
   

 

 

  
Automobiles — 3.2%            

Tesla, Inc.(a)

     128,759       44,609,843  
   

 

 

  
Banks — 0.1%            

Bank of America Corp.

     26,415       1,165,694  
   

 

 

  
Beverages — 0.1%            

Monster Beverage Corp.(a)

     5,260       336,377  

PepsiCo, Inc.

     4,148       545,255  
   

 

 

  
      881,632  
Biotechnology — 1.7%            

AbbVie, Inc.

     50,421       9,383,852  

Amgen, Inc.

     3,344       963,674  

BioMarin Pharmaceutical, Inc.(a)

     6,504       377,687  

Gilead Sciences, Inc.

     31,142       3,428,111  

Incyte Corp.(a)

     3,123       203,183  

Natera, Inc.(a)

     28,757       4,535,842  

Regeneron Pharmaceuticals, Inc.

     5,212       2,555,339  

Sarepta Therapeutics, Inc.(a)

     28,869       1,085,475  

United Therapeutics Corp.(a)

     3,318       1,057,944  
   

 

 

  
      23,591,107  
Broadline Retail — 5.4%            

Amazon.com, Inc.(a)

     338,901       69,478,094  

Coupang, Inc., Class A(a)

     75,800       2,126,190  

MercadoLibre, Inc.(a)

     1,905       4,883,067  
   

 

 

  
       76,487,351  
Capital Markets — 3.7%            

Blackstone, Inc., Class A

     46,509       6,453,589  

Charles Schwab Corp. (The)

     135,938       12,008,763  

Intercontinental Exchange, Inc.

     22,398       4,027,160  

Moody’s Corp.

     20,818       9,978,484  

Morgan Stanley

     85,921       11,000,466  

S&P Global, Inc.

     17,385       8,916,071  
   

 

 

  
      52,384,533  
Chemicals — 0.0%            

Cabot Corp.

     1       75  
   

 

 

  
Commercial Services & Supplies — 0.9%            

Cintas Corp.

     52,089       11,798,159  

Waste Connections, Inc.

     4,292       845,910  
   

 

 

  
      12,644,069  
Communications Equipment — 0.9%            

Arista Networks, Inc.(a)

     55,409       4,800,636  

Ciena Corp.(a)

     5,036       403,182  

Cisco Systems, Inc.

     20,040       1,263,321  

Motorola Solutions, Inc.

     13,544       5,625,907  
   

 

 

  
      12,093,046  
Construction & Engineering — 0.6%            

Comfort Systems U.S.A., Inc.

     12,894       6,166,298  

MasTec, Inc.(a)

     12,250       1,910,142  
   

 

 

  
      8,076,440  
Security   Shares     Value  
Consumer Finance — 0.2%            

American Express Co.

     11,674     $ 3,432,740  
   

 

 

  
Consumer Staples Distribution & Retail — 3.1%            

Costco Wholesale Corp.

     30,938       32,181,089  

Sprouts Farmers Market, Inc.(a)

     3,874       669,660  

Walmart, Inc.

     115,212       11,373,728  
   

 

 

  
      44,224,477  
Containers & Packaging — 0.1%            

Packaging Corp. of America

     4,410       851,880  
   

 

 

  
Electric Utilities — 0.1%            

Entergy Corp.

     9,073       755,599  
   

 

 

  
Electrical Equipment — 0.1%            

Eaton Corp. PLC

     4,786       1,532,477  
   

 

 

  
Electronic Equipment, Instruments & Components — 2.1%            

Amphenol Corp., Class A

     89,416       8,041,181  

Badger Meter, Inc.

     3,154       782,886  

Corning, Inc.

     160,049       7,936,830  

Flex Ltd.(a)

     207,070       8,759,061  

Keysight Technologies, Inc.(a)

     15,097       2,370,833  

Trimble, Inc.(a)

     8,440       601,518  

Zebra Technologies Corp., Class A(a)

     2,802       811,935  
   

 

 

  
      29,304,244  
Entertainment — 2.2%            

Netflix, Inc.(a)

     22,462        27,116,800  

ROBLOX Corp., Class A(a)

     26,830       2,333,673  

Spotify Technology SA(a)

     426       283,350  

Walt Disney Co. (The)

     15,174       1,715,269  
   

 

 

  
      31,449,092  
Financial Services — 3.1%            

Mastercard, Inc., Class A

     29,766       17,430,969  

Remitly Global, Inc.(a)

     15,341       327,684  

Toast, Inc., Class A(a)

     7,017       295,977  

Visa, Inc., Class A

     69,868       25,515,095  
   

 

 

  
      43,569,725  
Ground Transportation — 0.8%            

Uber Technologies, Inc.(a)

     131,854       11,096,833  
   

 

 

  
Health Care Equipment & Supplies — 1.4%            

Boston Scientific Corp.(a)

     93,517       9,843,599  

Edwards Lifesciences Corp.(a)

     4,477       350,191  

Intuitive Surgical, Inc.(a)

     5,308       2,931,821  

Medtronic PLC

     75,661       6,278,350  
   

 

 

  
      19,403,961  
Health Care Providers & Services — 1.1%            

Cardinal Health, Inc.

     72,395       11,180,684  

Cencora, Inc.

     4,889       1,423,872  

UnitedHealth Group, Inc.

     9,068       2,737,720  
   

 

 

  
      15,342,276  
Health Care Technology — 0.1%            

Veeva Systems, Inc., Class A(a)

     6,662       1,863,361  
   

 

 

  
Hotels, Restaurants & Leisure — 1.9%            

Airbnb, Inc., Class A(a)

     8,304       1,071,216  

Booking Holdings, Inc.

     3,126       17,252,175  

Brinker International, Inc.(a)

     2,837       489,751  

Chipotle Mexican Grill, Inc.(a)

     6,885       344,801  

DoorDash, Inc., Class A(a)

     26,419       5,512,325  

Dutch Bros, Inc., Class A(a)

     7,721       557,456  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   11

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Growth Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Hotels, Restaurants & Leisure (continued)            

Flutter Entertainment PLC(a)

     5,363     $ 1,355,230  

Yum! Brands, Inc.

     6,366       916,322  
   

 

 

  
      27,499,276  
Household Durables — 0.4%            

Garmin Ltd.

     21,132       4,289,162  

Taylor Morrison Home Corp., Class A(a)

     7,861       442,417  

Toll Brothers, Inc.

     8,685       905,411  
   

 

 

  
      5,636,990  
Industrial Conglomerates — 0.0%            

Honeywell International, Inc.

     19       4,307  
   

 

 

  
Insurance — 0.7%            

Aon PLC, Class A

     625       232,550  

Progressive Corp. (The)

     24,354       6,939,185  

Travelers Cos., Inc. (The)

     12,336       3,401,035  
   

 

 

  
      10,572,770  
Interactive Media & Services — 10.0%            

Alphabet, Inc., Class A

     175,791       30,190,346  

Alphabet, Inc., Class C, NVS

     227,676       39,353,797  

Meta Platforms, Inc., Class A

     105,399       68,244,798  

Pinterest, Inc., Class A(a)

     87,497       2,722,032  
   

 

 

  
       140,510,973  
IT Services — 0.7%            

Accenture PLC, Class A

     2,478       785,080  

GoDaddy, Inc., Class A(a)

     18,941       3,450,103  

MongoDB, Inc., Class A(a)

     3,887       733,982  

Snowflake, Inc., Class A(a)

     17,751       3,650,848  

VeriSign, Inc.

     5,859       1,596,402  
   

 

 

  
      10,216,415  
Machinery — 0.8%            

Flowserve Corp.

     6,117       305,300  

Parker-Hannifin Corp.

     16,302       10,835,939  
   

 

 

  
      11,141,239  
Media — 0.1%            

Fox Corp., Class A, NVS

     14,231       781,851  

Trade Desk, Inc. (The), Class A(a)

     4,652       349,924  
   

 

 

  
      1,131,775  
Oil, Gas & Consumable Fuels — 0.4%            

Targa Resources Corp.

     33,567       5,301,236  
   

 

 

  
Passenger Airlines — 0.0%            

Alaska Air Group, Inc.(a)

     6,905       351,672  
   

 

 

  
Pharmaceuticals — 3.7%            

Bristol-Myers Squibb Co.

     93,507       4,514,518  

Eli Lilly & Co.

     44,147       32,565,917  

Merck & Co., Inc.

     170,350       13,089,694  

Pfizer, Inc.

     64,743       1,520,813  
   

 

 

  
      51,690,942  
Retail REITs — 0.0%            

Simon Property Group, Inc.

     3,153       514,160  
   

 

 

  
Semiconductors & Semiconductor Equipment — 18.0%  

Advanced Micro Devices, Inc.(a)

     230,305       25,501,673  

Analog Devices, Inc.

     4,498       962,482  

Applied Materials, Inc.

     35,187       5,515,562  

Broadcom, Inc.

     294,303       71,241,927  

Credo Technology Group Holding Ltd.(a)

     11,909       725,973  

KLA Corp.

     6,081       4,602,587  

Lam Research Corp.

     156,274       12,625,377  

Marvell Technology, Inc.

     99,063       5,962,602  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

NVIDIA Corp.

     787,659     $ 106,436,361  

Onto Innovation, Inc.(a)

     4,160       382,470  

QUALCOMM, Inc.

     87,622       12,722,714  

Rambus, Inc.(a)

     35,996       1,924,706  

Texas Instruments, Inc.

     25,205       4,608,734  
   

 

 

  
       253,213,168  
Software — 19.3%            

Adobe, Inc.(a)

     36,880       15,308,519  

AppLovin Corp., Class A(a)

     4,312       1,694,616  

Atlassian Corp., Class A(a)

     21,687       4,502,872  

Autodesk, Inc.(a)

     30,964       9,169,060  

Cadence Design Systems, Inc.(a)

     8,194       2,352,252  

Datadog, Inc., Class A(a)

     15,137       1,784,350  

Dynatrace, Inc.(a)

     28,023       1,513,522  

Elastic NV(a)

     70,520       5,702,952  

Fair Isaac Corp.(a)

     2,514       4,339,868  

Fortinet, Inc.(a)

     55,908       5,690,316  

FreedomPay, Inc.(a)(b)

     43,051       762,864  

Intuit, Inc.

     16,697       12,580,689  

Microsoft Corp.

     284,678       131,054,364  

Nutanix, Inc., Class A(a)

     1,883       144,407  

Oracle Corp.

     86,482       14,315,365  

Palantir Technologies, Inc., Class A(a)

     107,477       14,163,319  

Palo Alto Networks, Inc.(a)

     22,926       4,411,421  

Rubrik, Inc., Class A(a)

     6,475       617,391  

SailPoint, Inc.(a)

     15,903       280,211  

Salesforce, Inc.

     85,542       22,700,281  

ServiceNow, Inc.(a)

     13,612       13,762,957  

Workday, Inc., Class A(a)

     19,916       4,933,392  
   

 

 

  
      271,784,988  
Specialized REITs — 0.4%            

Equinix, Inc.

     6,608       5,873,323  
   

 

 

  
Specialty Retail — 2.6%            

AutoNation, Inc.(a)

     2,601       478,194  

Bath & Body Works, Inc.

     34,626       973,683  

Home Depot, Inc. (The)

     60,997       22,464,585  

Lithia Motors, Inc., Class A

     2,593       821,748  

O’Reilly Automotive, Inc.(a)

     2,660       3,637,550  

TJX Cos., Inc. (The)

     64,010       8,122,869  
   

 

 

  
      36,498,629  
Technology Hardware, Storage & Peripherals — 7.9%            

Apple Inc.

     543,111       109,083,845  

Dell Technologies, Inc., Class C

     4,401       489,699  

NetApp, Inc.

     25,044       2,483,363  
   

 

 

  
      112,056,907  
Textiles, Apparel & Luxury Goods — 0.4%            

Ralph Lauren Corp., Class A

     21,953       6,076,810  
   

 

 

  
Tobacco — 0.3%            

Philip Morris International, Inc.

     24,122       4,356,192  
   

 

 

  
Total Long-Term Investments — 99.0%            

(Cost: $880,481,157)

        1,395,221,832  
   

 

 

  
 

 

 

12  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Growth Fund

 

Security   Shares     Value  

Short-Term Securities

    
Money Market Funds — 0.9%            

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(c)(d)

     13,188,787     $ 13,188,787  
   

 

 

  

Total Short-Term Securities — 0.9%
(Cost: $13,188,787)

 

     13,188,787  
   

 

 

  

Total Investments — 99.9%
(Cost: $893,669,944)

 

     1,408,410,619  

Other Assets Less Liabilities — 0.1%

 

     918,045  
   

 

 

  

Net Assets — 100.0%

     $  1,409,328,664  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

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

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		     Shares
Held at
05/31/25		     Income     Capital Gain
Distributions
from
Underlying
Funds		         
 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

   $ —     $ —     $ (558 )(b)    $ 558     $ —     $ —       —     $ 4,414 (c)    $ —     
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     11,949,669       1,239,118 (b)      —       —       —       13,188,787       13,188,787       599,711       —     
         

 

 

    

 

 

    

 

 

      

 

 

    

 

 

     

 

 

  
          $ 558     $   —     $ 13,188,787       $ 604,125     $   —     
         

 

 

    

 

 

    

 

 

      

 

 

    

 

 

     

 

 

  

 

  (a) 

As of period end, the entity is no longer held.

 
  (b)

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

            

NASDAQ 100 E-Mini Index

      30        06/20/25      $ 12,826      $ 337,761  
           

 

 

  

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   13

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Growth Fund

 

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 337,761      $ —      $ —      $ —      $ 337,761  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended May 31, 2025, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ 1,885,971      $ —      $ —      $ —      $ 1,885,971  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ 49,016      $ —      $ —      $ —      $ 49,016  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

  

Futures contracts:

   

Average notional value of contracts — long

    $ 14,066,205  

 

  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1            Level 2            Level 3            Total  

 

  

Assets

                 

Investments

                 

Long-Term Investments

                 

Common Stocks

   $ 1,394,458,968               $ —               $ 762,864               $ 1,395,221,832  

Short-Term Securities

                 

Money Market Funds

     13,188,787          —          —          13,188,787  
 

 

 

       

 

 

       

 

 

       

 

 

  
  $ 1,407,647,755        $ —        $ 762,864        $ 1,408,410,619  
 

 

 

       

 

 

       

 

 

       

 

 

  

Derivative Financial Instruments(a)

                 

Assets

                 

Equity Contracts

   $ 337,761        $   —        $ —        $ 337,761  
 

 

 

       

 

 

       

 

 

       

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

14  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 2.0%  

AAR Corp.(a)(b)

     31,916     $ 1,959,962  

AeroVironment, Inc.(a)

     8,628       1,536,043  

AerSale Corp.(a)

     89,207       525,429  

Archer Aviation, Inc., Class A(a)(b)

     381,646       3,850,808  

Astronics Corp.(a)(b)

     52,245       1,631,089  

ATI, Inc.(a)

     70,896       5,646,157  

BWX Technologies, Inc.

     19,621       2,464,398  

Ducommun, Inc.(a)

     154,435       10,869,135  

Huntington Ingalls Industries, Inc.

     4,164       928,822  

Kratos Defense & Security Solutions, Inc.(a)

     96,570       3,562,467  

Leonardo DRS, Inc.

     154,150       6,520,545  

Loar Holdings, Inc.(a)

     3,295       286,830  

Mercury Systems, Inc.(a)(b)

     72,723       3,581,608  

Moog, Inc., Class A

     108,472       20,100,946  

Rocket Lab Corp.(a)(b)

     280,682       7,519,471  

Triumph Group, Inc.(a)

     30,470       785,821  

V2X, Inc.(a)

     132,179       5,985,065  
   

 

 

  
      77,754,596  
Air Freight & Logistics — 0.0%            

Hub Group, Inc., Class A

     17,210       580,149  
   

 

 

  
Automobile Components — 1.3%            

Adient PLC(a)

     607,236       9,466,809  

BorgWarner, Inc.

     148,744       4,921,939  

Cooper-Standard Holdings, Inc.(a)(b)

     84,671       1,950,820  

Dana, Inc.

     256,976       4,273,511  

Dorman Products, Inc.(a)

     56,176       7,264,119  

Gentex Corp.

     61,536       1,327,331  

Goodyear Tire & Rubber Co. (The)(a)

     280,488       3,200,368  

Modine Manufacturing Co.(a)(b)

     87,520       7,946,816  

Patrick Industries, Inc.

     32,780       2,814,491  

Standard Motor Products, Inc.

     242,966       7,361,870  
   

 

 

  
       50,528,074  
Automobiles — 0.1%            

Winnebago Industries, Inc.

     94,977       3,222,570  
   

 

 

  
Banks — 9.3%            

1st Source Corp.

     136,372       8,258,688  

Amalgamated Financial Corp.

     413,540       12,497,179  

Ameris Bancorp

     104,060       6,396,568  

Atlantic Union Bankshares Corp.

     30,440       913,809  

Axos Financial, Inc.(a)(b)

     86,245       5,997,477  

Bank of Marin Bancorp

     78,657       1,676,181  

Bank7 Corp.

     25,017       966,157  

BankUnited, Inc.

     7,346       249,617  

Business First Bancshares, Inc.

     44,303       1,053,968  

Byline Bancorp, Inc.

     80,008       2,069,807  

Capital City Bank Group, Inc.

     189,096       7,136,483  

Capitol Federal Financial, Inc.

     177,089       1,011,178  

Chemung Financial Corp.

     64,486       3,022,459  

Coastal Financial Corp.(a)(b)

     27,974       2,458,635  

Colony Bankcorp, Inc.

     231,482       3,539,360  

Commerce Bancshares, Inc.

     23,170       1,459,942  

Community Trust Bancorp, Inc.

     74,263       3,791,126  

Community West Bancshares

     13,381       238,182  

ConnectOne Bancorp, Inc.

     365,401       8,393,261  

Customers Bancorp, Inc.(a)(b)

     12,336       628,643  

Dime Community Bancshares, Inc.

     54,468       1,397,649  

Eagle Bancorp, Inc.

     39,561       696,274  

Enterprise Bancorp, Inc.

     20,550       792,202  

Enterprise Financial Services Corp.

     269,264       14,254,836  
Security   Shares     Value  
Banks (continued)            

FB Financial Corp.

     276,073     $ 12,050,586  

Financial Institutions, Inc.

     65,265       1,685,142  

First Bank

     46,314       672,942  

First Busey Corp.

     121,790       2,693,995  

First Business Financial Services, Inc.

     132,135       6,444,224  

First Community Bankshares, Inc.

     66,415       2,497,204  

First Financial Bankshares, Inc.

     363,744       12,825,613  

First Financial Corp.

     122,131       6,331,271  

First Financial Northwest, Inc.(a)

     10,701       5,993  

First Hawaiian, Inc.

     611,846       14,610,882  

First Horizon Corp.

     340,664       6,772,400  

First Internet Bancorp

     65,815       1,596,014  

First Interstate BancSystem, Inc., Class A

     290,405       7,884,496  

First of Long Island Corp. (The)

     76,556       908,720  

First United Corp.

     26,985       810,899  

Flushing Financial Corp.

     117,281       1,410,890  

FNB Corp.

     232,320       3,222,278  

Hancock Whitney Corp.

     284,613       15,559,793  

HarborOne Bancorp, Inc.

     59,920       681,890  

HBT Financial, Inc.

     166,191       3,888,869  

Heritage Commerce Corp.

     699,732       6,479,518  

Heritage Financial Corp.

     34,073       796,627  

HomeTrust Bancshares, Inc.

     127,297       4,594,149  

Horizon Bancorp, Inc.

     573,666       8,513,203  

Independent Bank Corp.

     193,705       6,107,519  

Kearny Financial Corp.

     854,925       5,155,198  

Live Oak Bancshares, Inc.

     19,295       529,648  

Mercantile Bank Corp.

     60,420       2,668,147  

Metropolitan Bank Holding Corp.(a)

     25,640       1,658,139  

Mid Penn Bancorp, Inc.

     67,240       1,791,946  

Midland States Bancorp, Inc.

     328,994       5,553,419  

MidWestOne Financial Group, Inc.

     16,809       483,259  

National Bank Holdings Corp., Class A

     55,340       2,000,541  

Nicolet Bankshares, Inc.

     30,970       3,798,161  

Northeast Bank

     7,045       590,582  

Northfield Bancorp, Inc.

     402,954       4,706,503  

Northrim BanCorp, Inc.

     110,281        10,101,740  

OceanFirst Financial Corp.

     964,066       16,205,949  

Origin Bancorp, Inc.

     86,711       2,955,978  

Park National Corp.

     15,134       2,460,183  

Peapack-Gladstone Financial Corp.

     111,946       3,069,559  

Peoples Bancorp, Inc.

     68,957       2,021,819  

Primis Financial Corp.

     48,162       456,094  

Prosperity Bancshares, Inc.

     107,549       7,490,788  

Provident Financial Services, Inc.

     481,474       8,040,616  

Republic Bancorp, Inc., Class A

     32,707       2,241,738  

Riverview Bancorp, Inc.

     201,450       1,120,062  

ServisFirst Bancshares, Inc.

     80,202       5,969,435  

Shore Bancshares, Inc.

     227,981       3,303,445  

Sierra Bancorp

     84,265       2,306,333  

SmartFinancial, Inc.

     42,735       1,358,118  

South Plains Financial, Inc.

     83,040       2,986,949  

Southern First Bancshares, Inc.(a)

     51,115       1,843,718  

Southside Bancshares, Inc.

     28,544       804,655  

SouthState Corp.

     18,446       1,619,559  

Stellar Bancorp, Inc.

     23,175       623,871  

Tompkins Financial Corp.

     9,058       556,161  

United Bankshares, Inc.

     93,880       3,392,823  

United Community Banks, Inc.

     60,563       1,740,581  

Unity Bancorp, Inc.

     5,184       229,159  

Univest Financial Corp.

     185,388       5,472,654  

Valley National Bancorp

     787,143       6,911,116  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   15

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Banks (continued)            

Veritex Holdings, Inc.

     61,981     $ 1,499,940  

Washington Trust Bancorp, Inc.

     270,137       7,471,989  

WesBanco, Inc.

     603,348       18,571,051  
   

 

 

  
      369,706,424  
Beverages — 0.2%            

Boston Beer Co., Inc. (The), Class A(a)

     35,909       8,253,684  

Vita Coco Co., Inc. (The)(a)

     15,472       550,648  
   

 

 

  
      8,804,332  
Biotechnology — 8.2%            

4D Molecular Therapeutics, Inc.(a)

     152,112       550,645  

ACADIA Pharmaceuticals, Inc.(a)

     364,442       7,861,014  

ADMA Biologics, Inc.(a)

     318,088       6,310,866  

Agios Pharmaceuticals, Inc.(a)

     106,644       3,422,206  

Akero Therapeutics, Inc.(a)

     50,773       2,520,879  

Alector, Inc.(a)

     675,745       898,741  

Alkermes PLC(a)

     147,564       4,516,934  

Allogene Therapeutics, Inc.(a)(b)

     328,343       384,161  

Amicus Therapeutics, Inc.(a)

     1,329,994       8,073,064  

AnaptysBio, Inc.(a)(b)

     35,268       784,008  

Apellis Pharmaceuticals, Inc.(a)

     55,114       933,080  

Arcellx, Inc.(a)

     5,843       362,617  

Arcturus Therapeutics Holdings, Inc.(a)

     145,301       1,820,621  

Arcus Biosciences, Inc.(a)

     194,127       1,733,554  

Ardelyx, Inc.(a)

     891,265       3,270,943  

Arrowhead Pharmaceuticals, Inc.(a)

     182,405       2,931,248  

ARS Pharmaceuticals, Inc.(a)

     65       938  

Atossa Therapeutics, Inc.(a)(b)

     246,842       191,821  

Avidity Biosciences, Inc.(a)(b)

     53,432       1,655,323  

Beam Therapeutics, Inc.(a)(b)

     48,372       765,729  

BioCryst Pharmaceuticals, Inc.(a)

     945,485        10,163,964  

BioMarin Pharmaceutical, Inc.(a)

     49,379       2,867,438  

Blueprint Medicines Corp.(a)

     87,253       8,843,092  

Bridgebio Pharma, Inc.(a)

     193,003       6,610,353  

CareDx, Inc.(a)(b)

     172,643       2,933,205  

Catalyst Pharmaceuticals, Inc.(a)

     445,060       11,108,698  

Celldex Therapeutics, Inc.(a)

     147,560       2,918,737  

Coherus Biosciences, Inc.(a)(b)

     1,000,977       779,761  

Crinetics Pharmaceuticals, Inc.(a)

     55,309       1,687,478  

Cytokinetics, Inc.(a)

     182,759       5,669,184  

Day One Biopharmaceuticals, Inc.(a)

     454,562       2,900,106  

Denali Therapeutics, Inc.(a)

     303,411       4,017,162  

Dyne Therapeutics, Inc.(a)

     137,334       1,642,515  

Emergent BioSolutions, Inc.(a)

     155,130       980,422  

Enanta Pharmaceuticals, Inc.(a)

     109,547       649,614  

Exact Sciences Corp.(a)

     13,664       769,010  

Exelixis, Inc.(a)

     50,414       2,169,819  

Fate Therapeutics, Inc.(a)

     955,562       1,156,230  

Halozyme Therapeutics, Inc.(a)

     136,222       7,637,968  

Ideaya Biosciences, Inc.(a)

     476,569       9,478,957  

Incyte Corp.(a)

     45,614       2,967,647  

Insmed, Inc.(a)

     216,381       15,088,247  

Intellia Therapeutics, Inc.(a)(b)

     555,833       3,818,573  

Ionis Pharmaceuticals, Inc.(a)

     212,444       7,118,998  

Iovance Biotherapeutics, Inc.(a)(b)

     566,319       991,058  

iTeos Therapeutics, Inc.(a)

     599,276       6,004,745  

Karyopharm Therapeutics, Inc.(a)(b)

     46,617       195,791  

Kiniksa Pharmaceuticals International PLC(a)

     181,843       4,975,224  

Kodiak Sciences, Inc.(a)

     529,224       1,799,362  

Krystal Biotech, Inc.(a)

     18,777       2,365,151  

Kura Oncology, Inc.(a)

     445,472       2,534,736  

Kymera Therapeutics, Inc.(a)(b)

     74,783       2,216,568  

Madrigal Pharmaceuticals, Inc.(a)

     19,809       5,452,625  
Security   Shares     Value  
Biotechnology (continued)            

MannKind Corp.(a)

     347,972     $ 1,444,084  

MiMedx Group, Inc.(a)

     518,363       3,333,074  

Mirum Pharmaceuticals, Inc.(a)(b)

     34,867       1,550,187  

Moderna, Inc.(a)(b)

     264,569       7,026,953  

Myriad Genetics, Inc.(a)

     213,608       895,017  

Natera, Inc.(a)

     40,682       6,416,772  

Nurix Therapeutics, Inc.(a)

     143,350       1,523,810  

Olema Pharmaceuticals, Inc.(a)

     151,119       797,908  

ORIC Pharmaceuticals, Inc.(a)(b)

     67,007       547,447  

PMV Pharmaceuticals, Inc.(a)

     280,445       246,287  

Protagonist Therapeutics, Inc.(a)

     12,819       608,518  

Prothena Corp. PLC(a)

     68,410       314,002  

PTC Therapeutics, Inc.(a)

     184,370       8,945,632  

Puma Biotechnology, Inc.(a)

     222,482       729,741  

Recursion Pharmaceuticals, Inc., Class A(a)(b)

     316,374       1,322,443  

REGENXBIO, Inc.(a)

     580,895       5,140,921  

Relay Therapeutics, Inc.(a)

     1,078,888       3,236,664  

Replimune Group, Inc.(a)

     132,862       1,193,101  

Revolution Medicines, Inc.(a)(b)

     180,855       7,125,687  

Rhythm Pharmaceuticals, Inc.(a)

     21,905       1,343,434  

Rigel Pharmaceuticals, Inc.(a)

     72,295       1,388,064  

Sangamo Therapeutics, Inc.(a)(b)

     627,426       291,753  

Sarepta Therapeutics, Inc.(a)

     166,655       6,266,228  

Scholar Rock Holding Corp.(a)(b)

     115,743       3,357,704  

SpringWorks Therapeutics, Inc.(a)

     53,265       2,488,008  

Summit Therapeutics, Inc.(a)(b)

     38,623       703,518  

Syndax Pharmaceuticals, Inc.(a)(b)

     579,260       6,105,400  

TG Therapeutics, Inc.(a)

     417,412       14,655,335  

Tourmaline Bio, Inc.(a)

     19,876       331,532  

Travere Therapeutics, Inc.(a)

     308,317       4,630,921  

Twist Bioscience Corp.(a)

     303,708       8,898,644  

Ultragenyx Pharmaceutical, Inc.(a)

     175,692       5,978,799  

Vanda Pharmaceuticals, Inc.(a)

     1,051,878       4,565,150  

Vaxcyte, Inc.(a)

     133,328       4,331,827  

Vera Therapeutics, Inc., Class A(a)

     16,009       303,371  

Veracyte, Inc.(a)

     312,827       8,324,326  

Verve Therapeutics, Inc.(a)

     407,716       1,814,336  

Viking Therapeutics, Inc.(a)(b)

     141,061       3,780,435  

Vir Biotechnology, Inc.(a)

     400,463       1,978,287  

Voyager Therapeutics, Inc.(a)

     114,859       314,714  

Xencor, Inc.(a)

     285,341       2,282,728  
   

 

 

  
       326,033,592  
Broadline Retail — 0.0%            

Kohl’s Corp.

     62,199       505,678  

Macy’s, Inc.

     27,650       328,758  
   

 

 

  
      834,436  
Building Products — 1.2%            

American Woodmark Corp.(a)

     48,085       2,710,551  

Apogee Enterprises, Inc.

     30,085       1,162,785  

Armstrong World Industries, Inc.

     2,140       333,048  

Gibraltar Industries, Inc.(a)

     166,884       9,776,065  

Griffon Corp.

     163,046       11,209,413  

JELD-WEN Holding, Inc.(a)

     218,094       796,043  

Resideo Technologies, Inc.(a)

     707,968       14,654,938  

Zurn Elkay Water Solutions Corp.

     194,757       7,048,256  
   

 

 

  
      47,691,099  
Capital Markets — 3.0%            

Acadian Asset Management, Inc.

     207,584       6,250,354  

Etoro Group Ltd., Class A(a)(b)

     82,952       4,910,758  

Evercore, Inc., Class A

     76,923       17,806,905  

Federated Hermes, Inc., Class B

     161,694       6,823,487  
 

 

 

16  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Capital Markets (continued)            

Houlihan Lokey, Inc., Class A

     151,721     $ 26,502,624  

Invesco Ltd.

     609,675       8,815,901  

Piper Sandler Cos

     41,404       10,411,036  

PJT Partners, Inc., Class A

     132,053       19,895,105  

SEI Investments Co.

     32,411       2,763,362  

Victory Capital Holdings, Inc., Class A

     79,165       4,909,022  

Virtu Financial, Inc., Class A

     165,518       6,652,168  

Virtus Investment Partners, Inc.

     8,601       1,468,191  
   

 

 

  
      117,208,913  
Chemicals — 0.5%            

Balchem Corp.

     21,331       3,555,878  

Huntsman Corp.

     157,807       1,757,970  

Minerals Technologies, Inc.

     58,460       3,319,359  

Mosaic Co. (The)

     80,304       2,902,186  

Rayonier Advanced Materials, Inc.(a)

     228,018       877,869  

Tronox Holdings PLC

     1,404,753       7,978,997  
   

 

 

  
      20,392,259  
Commercial Services & Supplies — 0.9%            

ABM Industries, Inc.

     37,566       1,977,850  

ACV Auctions, Inc., Class A(a)

     116,108       1,901,849  

BrightView Holdings, Inc.(a)

     59,079       920,451  

CoreCivic, Inc.(a)

     437,208       9,601,088  

GEO Group, Inc. (The)(a)

     305,150       8,281,771  

Healthcare Services Group, Inc.(a)

     381,881       5,384,522  

Steelcase, Inc., Class A

     372,736       3,842,908  

Tetra Tech, Inc.

     104,082       3,636,625  
   

 

 

  
       35,547,064  
Communications Equipment — 1.1%            

ADTRAN Holdings, Inc.(a)

     301,908       2,424,321  

Calix, Inc.(a)

     350,303       16,198,011  

Ciena Corp.(a)

     169,534       13,572,892  

CommScope Holding Co., Inc.(a)

     546,094       3,298,408  

NETGEAR, Inc.(a)

     227,819       6,681,931  
   

 

 

  
          42,175,563  
Construction & Engineering — 2.8%            

Argan, Inc.

     11,327       2,382,068  

Comfort Systems U.S.A., Inc.

     48,589       23,236,718  

Dycom Industries, Inc.(a)

     48,149       11,070,418  

Fluor Corp.(a)

     244,265       10,156,539  

MasTec, Inc.(a)

     165,769       25,848,360  

Matrix Service Co.(a)

     67,511       824,984  

Primoris Services Corp.

     365,289       26,340,990  

Sterling Infrastructure, Inc.(a)

     18,408       3,460,888  

Tutor Perini Corp.(a)

     237,875       8,772,830  
   

 

 

  
      112,093,795  
Construction Materials — 0.0%            

United States Lime & Minerals, Inc.

     6,416       659,436  
   

 

 

  
Consumer Finance — 2.0%            

Encore Capital Group, Inc.(a)

     89,188       3,380,225  

Enova International, Inc.(a)

     269,085       24,936,107  

EZCORP, Inc., Class A, NVS(a)

     835,862       11,242,344  

FirstCash Holdings, Inc.

     90,545       11,581,611  

LendingClub Corp.(a)

     43,213       433,427  

LendingTree, Inc.(a)

     53,719       1,881,239  

OneMain Holdings, Inc.

     213,782       11,082,459  

PRA Group, Inc.(a)

     322,453       4,575,608  

Regional Management Corp.

     120,656       3,191,351  

Upstart Holdings, Inc.(a)

     122,336       5,770,589  
   

 

 

  
      78,074,960  
Security   Shares     Value  
Consumer Staples Distribution & Retail — 1.9%  

Andersons, Inc. (The)

     20,976     $ 744,858  

SpartanNash Co.

     67,087       1,305,513  

Sprouts Farmers Market, Inc.(a)

     366,710       63,389,490  

United Natural Foods, Inc.(a)

     323,444       9,887,683  
   

 

 

  
      75,327,544  
Containers & Packaging — 0.3%            

Crown Holdings, Inc.

     107,140       10,553,290  
   

 

 

  
Distributors — 0.0%            

GigaCloud Technology, Inc., Class A(a)

     30,033       527,379  
   

 

 

  
Diversified Consumer Services — 1.4%            

American Public Education, Inc.(a)

     76,163       2,243,000  

Bright Horizons Family Solutions, Inc.(a)

     134,967       17,437,736  

Coursera, Inc.(a)

     468,065       4,142,375  

Frontdoor, Inc.(a)

     33,934       1,866,709  

Laureate Education, Inc., Class A(a)

     781,118       17,575,155  

OneSpaWorld Holdings Ltd.

     56,889       1,072,927  

Strategic Education, Inc.

     20,691       1,887,640  

Stride, Inc.(a)

     61,753       9,348,787  
   

 

 

  
      55,574,329  
Diversified REITs — 0.2%            

Alexander & Baldwin, Inc.

     227,796       4,079,826  

American Assets Trust, Inc.

     177,486       3,539,071  

Armada Hoffler Properties, Inc.

     157,179       1,093,966  

Essential Properties Realty Trust, Inc.

     34,219       1,112,118  
   

 

 

  
      9,824,981  
Diversified Telecommunication Services — 0.5%        

ATN International, Inc.

     17,082       242,735  

Bandwidth, Inc., Class A(a)

     244,526       3,428,255  

Frontier Communications Parent, Inc.(a)

     18,594       673,661  

IDT Corp., Class B

     100,493       6,189,364  

Iridium Communications, Inc.

     135,361       3,438,169  

Lumen Technologies, Inc.(a)

     1,023,014       4,010,215  
   

 

 

  
      17,982,399  
Electric Utilities — 0.3%            

Genie Energy Ltd., Class B

     46,164       975,907  

TXNM Energy, Inc.

     199,145       11,289,530  
   

 

 

  
      12,265,437  
Electrical Equipment — 1.1%            

Allient, Inc.

     36,219       1,101,058  

American Superconductor Corp.(a)(b)

     147,398       4,165,467  

Bloom Energy Corp., Class A(a)(b)

     441,106       8,147,228  

EnerSys

     6,249       522,604  

Generac Holdings, Inc.(a)

     9,935       1,213,362  

NEXTracker, Inc., Class A(a)

     390,773       22,152,921  

NuScale Power Corp., Class A(a)

     64,954       2,077,878  

Sensata Technologies Holding PLC

     48,335       1,259,610  

Sunrun, Inc.(a)

     285,531       2,138,627  

Vicor Corp.(a)

     23,078       1,007,124  
   

 

 

  
       43,785,879  
Electronic Equipment, Instruments & Components — 2.9%  

Badger Meter, Inc.

     56,228       13,956,914  

Benchmark Electronics, Inc.

     210,011       7,669,602  

Cognex Corp.

     16,503       494,595  

Fabrinet(a)(b)

     70,181       16,343,050  

FARO Technologies, Inc.(a)

     21,592       914,853  

Flex Ltd.(a)

     190,451       8,056,077  

Insight Enterprises, Inc.(a)

     93,060       12,134,094  

Itron, Inc.(a)

     9,089       1,050,688  

Kimball Electronics, Inc.(a)

     57,220       1,035,682  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   17

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Methode Electronics, Inc.

     222,217     $ 1,766,625  

OSI Systems, Inc.(a)

     17,909       3,924,041  

PC Connection, Inc.

     179,903       11,765,656  

Plexus Corp.(a)

     63,605       8,348,792  

Rogers Corp.(a)

     29,889       1,989,711  

Sanmina Corp.(a)

     111,616       9,452,759  

ScanSource, Inc.(a)

     76,134       3,074,291  

TTM Technologies, Inc.(a)

     502,030       14,990,616  
   

 

 

  
       116,968,046  
Energy Equipment & Services — 1.8%            

Archrock, Inc.

     401,216       9,990,278  

Borr Drilling Ltd.(b)

     259,795       454,641  

ChampionX Corp.

     158,778       3,821,787  

Expro Group Holdings NV(a)

     100,792       838,589  

Helix Energy Solutions Group, Inc.(a)

     259,034       1,603,421  

Liberty Energy, Inc., Class A

     386,548       4,480,091  

Noble Corp. PLC

     325,663       8,066,673  

NOV, Inc.

     391,942       4,703,304  

Oceaneering International, Inc.(a)

     337,904       6,443,829  

Oil States International, Inc.(a)

     519,767       2,260,987  

Patterson-UTI Energy, Inc.

     627,722       3,465,025  

ProPetro Holding Corp.(a)

     807,404       4,359,982  

RPC, Inc.

     119,973       532,680  

Seadrill Ltd.(a)

     43,839       1,017,065  

Tidewater, Inc.(a)(b)

     162,051       6,435,045  

Transocean Ltd.(a)(b)

     5,154,160       12,833,858  
   

 

 

  
      71,307,255  
Entertainment — 0.3%            

Eros Media World PLC, Class A(a)

     23,977       —  

Eventbrite, Inc., Class A(a)

     325,945       769,230  

Marcus Corp. (The)

     132,950       2,456,916  

Roku, Inc., Class A(a)(b)

     143,632       10,407,575  
   

 

 

  
      13,633,721  
Financial Services — 2.2%            

Affirm Holdings, Inc., Class A(a)

     28,842       1,496,900  

Alerus Financial Corp.

     26,018       546,638  

Banco Latinoamericano de Comercio Exterior SA, Class E

     152,262       6,245,787  

Essent Group Ltd.

     259,755       15,065,790  

EVERTEC, Inc.

     20,714       750,468  

Mr. Cooper Group, Inc.(a)

     17,323       2,243,848  

NMI Holdings, Inc., Class A(a)

     480,877       19,100,434  

Pagseguro Digital Ltd., Class A

     514,711       4,586,075  

Remitly Global, Inc.(a)(b)

     1,073,838       22,937,180  

Repay Holdings Corp., Class A(a)

     298,309       1,434,866  

StoneCo Ltd., Class A(a)(b)

     844,029       11,520,996  

Velocity Financial, Inc.(a)

     168,858       2,828,372  
   

 

 

  
      88,757,354  
Food Products — 0.7%            

Cal-Maine Foods, Inc.

     113,501       10,888,151  

Fresh Del Monte Produce, Inc.

     45,773       1,616,702  

John B. Sanfilippo & Son, Inc.

     30,037       1,866,499  

Lancaster Colony Corp.

     53,652       8,981,345  

SunOpta, Inc.(a)

     497,139       3,102,147  

Vital Farms, Inc.(a)

     87,852       2,797,208  
   

 

 

  
      29,252,052  
Gas Utilities — 0.9%            

Brookfield Infrastructure Corp., Class A

     139,111       5,504,622  

New Jersey Resources Corp.

     549,356       25,209,947  
Security   Shares     Value  
Gas Utilities (continued)            

ONE Gas, Inc.

     19,020     $ 1,421,935  

Southwest Gas Holdings, Inc.

     51,120       3,671,950  
   

 

 

  
      35,808,454  
Ground Transportation — 0.5%            

ArcBest Corp.

     35,305       2,213,270  

Covenant Logistics Group, Inc., Class A

     271,794       6,169,724  

Lyft, Inc., Class A(a)

     594,498       9,060,149  

Saia, Inc.(a)

     4,565       1,207,032  
   

 

 

  
      18,650,175  
Health Care Equipment & Supplies — 1.6%            

Accuray, Inc.(a)

     337,460       516,314  

AngioDynamics, Inc.(a)

     247,368       2,523,154  

Cerus Corp.(a)

     413,481       525,121  

DENTSPLY SIRONA, Inc.

     105,313       1,682,902  

Envista Holdings Corp.(a)

     135,252       2,471,054  

Haemonetics Corp.(a)

     65,190       4,414,015  

iRadimed Corp.

     61,356       3,551,285  

iRhythm Technologies, Inc.(a)

     45,249       6,357,484  

Lantheus Holdings, Inc.(a)

     62,476       4,720,687  

LeMaitre Vascular, Inc.

     80,172       6,590,138  

LivaNova PLC(a)

     39,349       1,701,844  

NeuroPace, Inc.(a)

     156,537       2,069,419  

Novocure Ltd.(a)

     390,489       7,462,245  

Omnicell, Inc.(a)

     164,738       5,003,093  

OraSure Technologies, Inc.(a)

     489,954       1,411,067  

RxSight, Inc.(a)

     55,131       842,953  

SI-BONE, Inc.(a)

     88,798       1,678,282  

Surmodics, Inc.(a)

     21,487       623,553  

Tactile Systems Technology, Inc.(a)

     107,268       1,059,808  

Tandem Diabetes Care, Inc.(a)

     47,901       949,398  

TransMedics Group, Inc.(a)

     51,538       6,551,511  

Varex Imaging Corp.(a)

     203,096       1,557,746  
   

 

 

  
       64,263,073  
Health Care Providers & Services — 4.0%            

Acadia Healthcare Co., Inc.(a)

     99,312       2,248,424  

AdaptHealth Corp.(a)

     61,795       554,919  

Addus HomeCare Corp.(a)

     37,160       4,121,416  

agilon health, Inc.(a)

     464,987       1,032,271  

Alignment Healthcare, Inc.(a)

     564,197       8,671,708  

Aveanna Healthcare Holdings, Inc.(a)

     139,722       744,718  

BrightSpring Health Services, Inc.(a)(b)

     178,789       4,256,966  

Brookdale Senior Living, Inc.(a)

     316,264       2,058,879  

Castle Biosciences, Inc.(a)

     218,932       3,496,344  

Concentra Group Holdings Parent, Inc.

     129,429       2,799,549  

CorVel Corp.(a)

     92,221       10,261,431  

Cross Country Healthcare, Inc.(a)

     50,417       664,496  

Encompass Health Corp.

     25,443       3,076,059  

Enhabit, Inc.(a)

     63,325       664,912  

Ensign Group, Inc. (The)

     82,447       12,141,145  

Fulgent Genetics, Inc.(a)

     21,751       450,681  

Guardant Health, Inc.(a)

     217,303       8,826,848  

HealthEquity, Inc.(a)

     37,453       3,768,146  

Hims & Hers Health, Inc., Class A(a)

     335,621       18,982,724  

LifeStance Health Group, Inc.(a)

     442,774       2,630,077  

NeoGenomics, Inc.(a)

     98,578       717,648  

Option Care Health, Inc.(a)

     47,101       1,539,261  

Pediatrix Medical Group, Inc.(a)

     106,195       1,502,659  

Pennant Group, Inc. (The)(a)

     21,445       615,686  

Privia Health Group, Inc.(a)

     807,946       18,388,851  

Progyny, Inc.(a)

     726,881       15,627,941  

RadNet, Inc.(a)(b)

     56,407       3,242,838  
 

 

 

18  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Health Care Providers & Services (continued)  

Select Medical Holdings Corp.

     923,444     $ 14,119,459  

Universal Health Services, Inc., Class B

     39,625       7,542,619  

Viemed Healthcare, Inc.(a)

     356,962       2,373,797  
   

 

 

  
       157,122,472  
Health Care REITs — 0.2%            

Alexandria Real Estate Equities, Inc.

     24,062       1,688,912  

CareTrust REIT, Inc.

     253,094       7,278,983  

PACS Group, Inc.(a)

     44,767       444,089  
   

 

 

  
      9,411,984  
Health Care Technology — 0.4%            

Doximity, Inc., Class A(a)

     91,985       4,791,499  

Evolent Health, Inc., Class A(a)

     91,039       678,240  

Health Catalyst, Inc.(a)

     263,871       1,002,710  

Phreesia, Inc.(a)

     345,003       8,449,123  

Teladoc Health, Inc.(a)

     244,916       1,694,819  
   

 

 

  
      16,616,391  
Hotel & Resort REITs — 0.7%            

Apple Hospitality REIT, Inc.

     71,357       827,028  

Braemar Hotels & Resorts, Inc.

     1,940,560       4,424,477  

Chatham Lodging Trust

     942,339       6,718,877  

DiamondRock Hospitality Co.

     316,980       2,421,727  

RLJ Lodging Trust

     1,475,788       10,773,252  

Summit Hotel Properties, Inc.

     267,357       1,171,024  
   

 

 

  
      26,336,385  
Hotels, Restaurants & Leisure — 1.6%            

Accel Entertainment, Inc., Class A(a)

     214,105       2,402,258  

Brinker International, Inc.(a)

     112,206       19,370,122  

Dutch Bros, Inc., Class A(a)

     52,979       3,825,084  

El Pollo Loco Holdings, Inc.(a)

     169,143       1,776,002  

Everi Holdings, Inc.(a)

     126,747       1,788,400  

Life Time Group Holdings, Inc.(a)(b)

     400,192       11,445,491  

Norwegian Cruise Line Holdings Ltd.(a)

     104,952       1,852,403  

Rush Street Interactive, Inc., Class A(a)(b)

     266,106       3,376,885  

Shake Shack, Inc., Class A(a)

     81,527       10,581,389  

Super Group SGHC Ltd.

     137,722       1,203,690  

Texas Roadhouse, Inc.

     24,419       4,766,833  
   

 

 

  
      62,388,557  
Household Durables — 1.7%            

Beazer Homes U.S.A., Inc.(a)

     25,107       515,196  

Century Communities, Inc.

     191,198       9,917,440  

Champion Homes, Inc.(a)

     33,185       2,170,299  

Ethan Allen Interiors, Inc.

     41,074       1,073,263  

LGI Homes, Inc.(a)

     20,351       1,019,585  

M/I Homes, Inc.(a)

     206,979       22,066,031  

Newell Brands, Inc.

     498,399       2,641,515  

Taylor Morrison Home Corp., Class A(a)

     240,813       13,552,956  

Tri Pointe Homes, Inc.(a)

     449,254       13,244,008  
   

 

 

  
      66,200,293  
Household Products — 0.4%            

Central Garden & Pet Co.(a)

     18,562       669,346  

Central Garden & Pet Co., Class A, NVS(a)

     238,368       7,620,625  

WD-40 Co.

     26,968       6,570,214  
   

 

 

  
      14,860,185  
Independent Power and Renewable Electricity Producers — 0.0%  

Spruce Power Holding Corp.(a)

     110       218  
   

 

 

  
Industrial REITs — 0.5%            

Americold Realty Trust, Inc.

     269,571       4,466,792  

First Industrial Realty Trust, Inc.

     326,966       16,161,929  
   

 

 

  
      20,628,721  
Security   Shares     Value  
Insurance — 1.7%            

Ambac Financial Group, Inc.(a)

     234,025     $ 1,832,416  

AMERISAFE, Inc.

     148,336       7,041,510  

Crawford & Co., Class A, NVS

     53,932       560,354  

Donegal Group, Inc., Class A

     109,797       2,217,899  

eHealth, Inc.(a)

     184,051       754,609  

Globe Life, Inc.

     56,940       6,939,278  

Goosehead Insurance, Inc., Class A

     6,149       665,691  

Hanover Insurance Group, Inc. (The)

     35,778       6,296,213  

Heritage Insurance Holdings, Inc.(a)

     28,973       708,969  

Mercury General Corp.

     53,734       3,464,768  

Oscar Health, Inc., Class A(a)(b)

     470,039       6,486,538  

Palomar Holdings, Inc.(a)

     51,029       8,749,943  

Reinsurance Group of America, Inc.

     15,985       3,249,591  

Root, Inc., Class A(a)

     2,062       270,101  

Selectquote, Inc.(a)

     291,706       633,002  

Stewart Information Services Corp.

     145,727       8,793,167  

Tiptree, Inc.

     34,434       763,746  

United Fire Group, Inc.

     72,134       2,052,212  

Universal Insurance Holdings, Inc.

     174,437       4,734,220  
   

 

 

  
      66,214,227  
Interactive Media & Services — 1.3%            

EverQuote, Inc., Class A(a)

     310,473       7,156,403  

Grindr, Inc.(a)(b)

     435,171       10,626,876  

MediaAlpha, Inc., Class A(a)

     424,843       4,333,399  

Nextdoor Holdings, Inc., Class A(a)

     548,142       838,657  

QuinStreet, Inc.(a)

     476,018       7,268,795  

Shutterstock, Inc.

     118,416       2,184,775  

TrueCar, Inc.(a)

     272,299       394,833  

Yelp, Inc.(a)

     343,505       13,111,586  

ZipRecruiter, Inc., Class A(a)(b)

     921,834       5,503,349  
   

 

 

  
       51,418,673  
IT Services — 0.3%            

ASGN, Inc.(a)

     38,426       2,029,277  

Backblaze, Inc., Class A(a)

     55,947       318,898  

Fastly, Inc., Class A(a)

     174,446       1,269,967  

Grid Dynamics Holdings, Inc., Class A(a)

     55,305       692,972  

Hackett Group, Inc. (The)

     177,075       4,341,879  

Kyndryl Holdings, Inc.(a)

     8,267       322,744  

Unisys Corp.(a)

     188,302       898,200  
   

 

 

  
      9,873,937  
Leisure Products — 0.1%            

Mattel, Inc.(a)

     68,058       1,289,018  

Peloton Interactive, Inc., Class A(a)(b)

     519,116       3,685,724  
   

 

 

  
      4,974,742  
Life Sciences Tools & Services — 0.4%            

10X Genomics, Inc., Class A(a)

     154,448       1,471,889  

AbCellera Biologics, Inc.(a)(b)

     349,412       705,812  

Adaptive Biotechnologies Corp.(a)

     780,484       7,430,208  

Codexis, Inc.(a)

     532,849       1,225,553  

CryoPort, Inc.(a)

     110,838       666,136  

Harvard Bioscience, Inc.(a)

     307       143  

MaxCyte, Inc.(a)

     402,595       958,176  

Personalis, Inc.(a)

     614,931       2,847,131  

Seer, Inc., Class A(a)(b)

     314,668       604,163  
   

 

 

  
      15,909,211  
Machinery — 2.7%            

Alamo Group, Inc.

     8,612       1,705,521  

Atmus Filtration Technologies, Inc.

     294,570       10,610,411  

Chart Industries, Inc.(a)

     21,779       3,416,254  

Energy Recovery, Inc.(a)

     268,442       3,385,054  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   19

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Machinery (continued)            

Enpro, Inc.

     6,928     $ 1,282,650  

Federal Signal Corp.

     20,628       1,940,476  

Flowserve Corp.

     345,520       17,244,903  

Greenbrier Cos., Inc. (The)

     81,449       3,670,906  

ITT, Inc.

     55,984       8,427,831  

Manitowoc Co., Inc. (The)(a)

     451,065       4,740,693  

Miller Industries, Inc.

     11,905       539,654  

Mueller Industries, Inc.

     154,602       12,038,858  

Shyft Group, Inc. (The)

     191,324       2,006,989  

SPX Technologies, Inc.(a)

     85,392       12,987,269  

Watts Water Technologies, Inc., Class A

     45,554       11,029,535  

Worthington Enterprises, Inc.

     188,307       11,093,165  
   

 

 

  
       106,120,169  
Marine Transportation — 0.3%            

Genco Shipping & Trading Ltd.

     288,280       3,816,827  

Matson, Inc.

     78,998       8,914,924  
   

 

 

  
      12,731,751  
Media — 0.7%            

Entravision Communications Corp., Class A

     307,587       636,705  

EW Scripps Co. (The), Class A(a)

     185,240       411,233  

Gambling.com Group Ltd.(a)(b)

     72,573       855,636  

Gray Media, Inc.

     196,087       778,465  

Integral Ad Science Holding Corp.(a)

     293,680       2,390,555  

Magnite, Inc.(a)

     128,036       2,094,669  

New York Times Co. (The), Class A

     193,754       11,067,229  

Paramount Global, Class B, NVS

     74,259       898,534  

PubMatic, Inc., Class A(a)(b)

     83,552       977,558  

TEGNA, Inc.

     115,061       1,923,820  

Thryv Holdings, Inc.(a)(b)

     289,149       3,845,682  

Townsquare Media, Inc., Class A

     77       531  
   

 

 

  
      25,880,617  
Metals & Mining — 2.8%            

Alcoa Corp.

     193,450       5,178,656  

Alpha Metallurgical Resources, Inc.(a)

     102,077       11,436,707  

Carpenter Technology Corp.

     70,515       16,571,025  

Century Aluminum Co.(a)

     444,078       6,878,768  

Cleveland-Cliffs, Inc.(a)(b)

     1,425,968       8,313,393  

Coeur Mining, Inc.(a)

     1,026,698       8,295,720  

Compass Minerals International, Inc.(a)

     196,914       3,782,718  

Constellium SE, Class A(a)

     305,718       3,711,416  

Hecla Mining Co.

     426,612       2,192,786  

i-80 Gold Corp.(a)

     531,838       267,568  

Kaiser Aluminum Corp.

     136,850       9,933,941  

Materion Corp.

     59,849       4,634,108  

Novagold Resources, Inc.(a)

     669,832       2,397,998  

Olympic Steel, Inc.

     248,329       7,362,955  

Piedmont Lithium, Inc.(a)(b)

     100,433       620,676  

Radius Recycling, Inc., Class A

     112,398       3,328,105  

Ramaco Resources, Inc., Class A

     359,819       3,252,764  

Ramaco Resources, Inc., Class B

     3,320       24,738  

Ryerson Holding Corp.

     136,607       2,835,961  

SSR Mining, Inc.(a)

     39,390       465,984  

SunCoke Energy, Inc.

     889,097       7,237,250  

Tredegar Corp.(a)

     72,228       605,271  
   

 

 

  
      109,328,508  
Mortgage Real Estate Investment Trusts (REITs) — 0.0%            

TPG RE Finance Trust, Inc.

     185,925       1,427,904  
   

 

 

  
Multi-Utilities — 1.1%            

Avista Corp.

     332,586       12,807,887  

Black Hills Corp.

     163,286       9,547,332  
Security   Shares     Value  
Multi-Utilities (continued)            

Northwestern Energy Group, Inc.

     332,618     $ 18,403,754  

Unitil Corp.

     19,169       1,051,036  
   

 

 

  
      41,810,009  
Office REITs — 0.3%            

Brandywine Realty Trust

     134,887       570,572  

COPT Defense Properties

     335,676       9,214,306  

Piedmont Office Realty Trust, Inc., Class A

     260,872       1,857,409  
   

 

 

  
      11,642,287  
Oil, Gas & Consumable Fuels — 2.3%            

Antero Resources Corp.(a)

     28,830       1,079,683  

California Resources Corp.

     132,627       5,858,135  

Chord Energy Corp.

     123,159       11,084,310  

Civitas Resources, Inc.

     112,232       3,071,790  

Delek U.S. Holdings, Inc.

     39,615       762,589  

Dorian LPG Ltd.

     44,632       955,571  

Encore Energy Corp.(a)(b)

     198,939       399,867  

Energy Fuels, Inc.(a)(b)

     150,462       735,759  

Evolution Petroleum Corp.

     217,373       976,005  

HF Sinclair Corp.

     10,715       387,133  

International Seaways, Inc.

     47,341       1,753,984  

Matador Resources Co.

     221,331       9,519,446  

Murphy Oil Corp.

     342,375       7,165,909  

Par Pacific Holdings, Inc.(a)

     534,679       11,543,720  

PBF Energy, Inc., Class A

     408,286       7,777,848  

Plains GP Holdings LP, Class A

     457,206       8,046,826  

REX American Resources Corp.(a)

     66,805       2,815,163  

Scorpio Tankers, Inc.

     93,225       3,704,761  

SM Energy Co.

     582,009       13,630,651  
   

 

 

  
       91,269,150  
Passenger Airlines — 0.9%            

Alaska Air Group, Inc.(a)

     238,153       12,129,132  

SkyWest, Inc.(a)

     208,854       21,188,238  

Sun Country Airlines Holdings, Inc.(a)

     216,387       2,505,762  
   

 

 

  
      35,823,132  
Personal Care Products — 0.3%            

BellRing Brands, Inc.(a)

     199,055       12,530,512  
   

 

 

  
Pharmaceuticals — 2.2%            

Arvinas, Inc.(a)

     236,760       1,704,672  

Atea Pharmaceuticals, Inc.(a)

     672,825       1,998,290  

Axsome Therapeutics, Inc.(a)

     81,973       8,620,281  

Collegium Pharmaceutical, Inc.(a)(b)

     154,253       4,494,932  

Corcept Therapeutics, Inc.(a)

     198,814       15,420,014  

Edgewise Therapeutics, Inc.(a)(b)

     136,794       1,953,418  

Evolus, Inc.(a)

     64,865       596,109  

Fulcrum Therapeutics, Inc.(a)

     129,124       887,728  

Harmony Biosciences Holdings, Inc.(a)

     180,598       6,230,631  

Nektar Therapeutics(a)

     1,008,152       730,406  

Nuvation Bio, Inc., Class A(a)(b)

     605,107       1,282,827  

Pacira BioSciences, Inc.(a)

     271,207       7,007,989  

Phibro Animal Health Corp., Class A

     56,214       1,372,746  

Prestige Consumer Healthcare, Inc.(a)

     110,413       9,459,082  

Rafael Holdings, Inc., Class B(a)

     220       315  

Scilex Holding Co.(a)(b)

     12,289       62,920  

Supernus Pharmaceuticals, Inc.(a)(b)

     382,726       12,132,414  

Tarsus Pharmaceuticals, Inc.(a)

     155,744       6,689,205  

Theravance Biopharma, Inc.(a)

     158,859       1,455,148  

Trevi Therapeutics, Inc.(a)

     793,269       5,164,181  

Xeris Biopharma Holdings, Inc.(a)

     191,086       943,965  
   

 

 

  
      88,207,273  
 

 

 

20  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Professional Services — 2.7%            

CACI International, Inc., Class A(a)(b)

     21,524     $ 9,212,272  

Conduent, Inc.(a)

     338,144       757,443  

CRA International, Inc.

     11,595       2,203,630  

CSG Systems International, Inc.

     12,139       801,902  

ExlService Holdings, Inc.(a)

     648,434       29,821,480  

Franklin Covey Co.(a)

     81,480       1,905,002  

Heidrick & Struggles International, Inc.

     17,174       749,817  

Huron Consulting Group, Inc.(a)

     2,432       347,363  

IBEX Holdings Ltd.(a)

     65,456       1,884,478  

ICF International, Inc.

     84,050       7,221,576  

KBR, Inc.

     51,470       2,686,219  

Kelly Services, Inc., Class A, NVS

     122,273       1,433,040  

Kforce, Inc.

     32,807       1,338,526  

Legalzoom.com, Inc.(a)

     630,164       5,753,397  

ManpowerGroup, Inc.

     476,036       19,969,710  

Maximus, Inc.

     60,429       4,381,707  

NV5 Global, Inc.(a)

     269,234       5,950,071  

Parsons Corp.(a)

     24,490       1,587,932  

Resources Connection, Inc.

     152,234       793,900  

ShiftPixy, Inc.(a)(c)

     1       —  

TriNet Group, Inc.

     66,976       5,573,073  

Willdan Group, Inc.(a)

     25,965       1,403,408  
   

 

 

  
       105,775,946  
Real Estate Management & Development — 0.5%  

Anywhere Real Estate, Inc.(a)

     400,144       1,396,503  

Compass, Inc., Class A(a)

     367,601       2,172,522  

Forestar Group, Inc.(a)

     39,635       759,010  

FRP Holdings, Inc.(a)

     58,636       1,590,208  

RMR Group, Inc. (The), Class A

     184,320       2,783,232  

St. Joe Co. (The)

     206,970       9,253,629  
   

 

 

  
      17,955,104  
Residential REITs — 0.2%            

Bluerock Homes Trust, Inc., Class A

     77       795  

Elme Communities

     96,372       1,547,734  

NexPoint Residential Trust, Inc.

     131,189       4,460,426  

Veris Residential, Inc.

     228,450       3,472,440  
   

 

 

  
      9,481,395  
Retail REITs — 1.8%            

Agree Realty Corp.

     165,715       12,478,339  

Brixmor Property Group, Inc.

     731,266       18,581,469  

NETSTREIT Corp.

     294,598       4,743,028  

NNN REIT, Inc.

     479,068       20,005,880  

Saul Centers, Inc.

     10,171       342,559  

Tanger, Inc.

     334,921       9,980,646  

Urban Edge Properties

     380,042       6,901,563  
   

 

 

  
      73,033,484  
Semiconductors & Semiconductor Equipment — 2.5%  

ACM Research, Inc., Class A(a)

     99,537       2,244,559  

Ambarella, Inc.(a)

     167,584       8,821,622  

Axcelis Technologies, Inc.(a)(b)

     63,314       3,567,111  

Credo Technology Group Holding Ltd.(a)

     345,664       21,071,677  

Diodes, Inc.(a)

     108,094       4,799,374  

Ichor Holdings Ltd.(a)

     62,663       988,822  

Impinj, Inc.(a)

     33,660       3,840,269  

inTEST Corp.(a)

     35,226       213,117  

Lattice Semiconductor Corp.(a)(b)

     40,368       1,814,138  

MaxLinear, Inc.(a)

     248,564       2,831,144  

Onto Innovation, Inc.(a)

     63,492       5,837,455  

Power Integrations, Inc.

     70,741       3,517,950  

Rambus, Inc.(a)

     228,506       12,218,216  

Semtech Corp.(a)

     117,384       4,381,945  
Security   Shares     Value  
Semiconductors & Semiconductor Equipment (continued)  

Silicon Laboratories, Inc.(a)

     15,791     $ 1,903,289  

SiTime Corp.(a)

     57,102       11,195,989  

Synaptics, Inc.(a)

     173,746       10,209,315  
   

 

 

  
      99,455,992  
Software — 6.7%            

8x8, Inc.(a)

     662,356       1,086,264  

ACI Worldwide, Inc.(a)

     318,282       14,723,725  

Alarm.com Holdings, Inc.(a)

     266,771       15,312,655  

Amplitude, Inc., Class A(a)

     370,075       4,585,229  

Asana, Inc., Class A(a)

     241,448       4,324,334  

Aurora Innovation, Inc., Class A(a)

     925,002       5,605,512  

Bit Digital, Inc.(a)(b)

     830,901       1,960,926  

Box, Inc., Class A(a)(b)

     302,760       11,450,383  

Braze, Inc., Class A(a)

     154,016       5,667,789  

C3.ai, Inc., Class A(a)(b)

     157,645       4,191,781  

Cleanspark, Inc.(a)(b)

     116,248       1,003,220  

Clear Secure, Inc., Class A

     70,773       1,751,632  

Clearwater Analytics Holdings, Inc., Class A(a)

     539,126       12,453,811  

Commvault Systems, Inc.(a)

     30,451       5,577,101  

Confluent, Inc., Class A(a)

     166,784       3,841,036  

Domo, Inc., Class B(a)

     258,816       3,286,963  

D-Wave Quantum, Inc.(a)(b)

     146,463       2,391,741  

Elastic NV(a)

     293,160       23,707,849  

Five9, Inc.(a)

     133,027       3,526,546  

Freshworks, Inc., Class A(a)

     418,817       6,395,336  

Gitlab, Inc., Class A(a)(b)

     89,352       4,066,409  

Intapp, Inc.(a)

     25,046       1,380,536  

InterDigital, Inc.

     36,927       8,022,760  

JFrog Ltd.(a)

     66,547       2,857,528  

LiveRamp Holdings, Inc.(a)

     299,203       9,748,034  

MARA Holdings, Inc.(a)

     97,682       1,379,270  

Olo, Inc., Class A(a)

     322,297       2,807,207  

Ooma, Inc.(a)

     442,886       6,045,394  

Pagaya Technologies Ltd., Class A(a)(b)

     130,978       2,153,278  

PROS Holdings, Inc.(a)

     276,052       4,855,755  

Q2 Holdings, Inc.(a)

     110,250       9,649,080  

Qualys, Inc.(a)

     111,533       15,452,897  

Rapid7, Inc.(a)

     46,394       1,064,742  

RingCentral, Inc., Class A(a)(b)

     296,580       7,690,319  

Riot Platforms, Inc.(a)(b)

     143,455       1,157,682  

Rubrik, Inc., Class A(a)

     12,837       1,224,008  

SEMrush Holdings, Inc., Class A(a)

     210,729       2,073,573  

Tenable Holdings, Inc.(a)

     239,614       7,720,363  

Upland Software, Inc.(a)

     146,742       316,963  

Varonis Systems, Inc.(a)

     223,950       10,677,936  

Verint Systems, Inc.(a)

     247,205       4,335,976  

Workiva, Inc., Class A(a)

     243,108       16,358,737  

Zeta Global Holdings Corp., Class A(a)

     813,568       10,690,283  
   

 

 

  
       264,572,563  
Specialized REITs — 1.5%            

CubeSmart

     1,180,106       50,461,332  

Four Corners Property Trust, Inc.

     287,172       7,928,819  
   

 

 

  
      58,390,151  
Specialty Retail — 3.7%            

1-800-Flowers.com, Inc., Class A(a)(b)

     207,688       1,021,825  

Abercrombie & Fitch Co., Class A(a)

     94,198       7,393,601  

America’s Car-Mart, Inc.(a)

     20,752       1,032,619  

Asbury Automotive Group, Inc.(a)(b)

     13,505       3,077,925  

AutoNation, Inc.(a)

     4,693       862,808  

Bath & Body Works, Inc.

     190,502       5,356,916  

Boot Barn Holdings, Inc.(a)

     61,641       9,881,669  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   21

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialty Retail (continued)            

Camping World Holdings, Inc., Class A

     17,754     $ 288,680  

CarParts.com, Inc.(a)

     170,354       149,554  

Carvana Co., Class A(a)

     11,323       3,704,433  

Chewy, Inc., Class A(a)

     79,162       3,582,080  

Conn’s, Inc.(a)(b)

     224,237       —  

Five Below, Inc.(a)

     93,483       10,897,313  

Floor & Decor Holdings, Inc., Class A(a)

     11,768       843,648  

Foot Locker, Inc.(a)

     130,258       3,094,930  

Gap, Inc. (The)

     67,625       1,508,714  

Genesco, Inc.(a)

     31,923       693,687  

Group 1 Automotive, Inc.

     35,262       14,948,267  

Haverty Furniture Cos., Inc.

     116,853       2,449,239  

Lands’ End, Inc.(a)

     77,609       653,468  

Lithia Motors, Inc., Class A

     12,960       4,107,154  

Lulu’s Fashion Lounge Holdings, Inc.(a)

     163       67  

National Vision Holdings, Inc.(a)

     300,608       5,955,044  

Penske Automotive Group, Inc.

     32,187       5,284,462  

Petco Health & Wellness Co., Inc.(a)

     317,613       1,165,640  

RealReal, Inc. (The)(a)(b)

     201,719       1,139,712  

Revolve Group, Inc., Class A(a)

     433,306       8,926,104  

RH(a)

     28,064       5,082,671  

Sonic Automotive, Inc., Class A

     61,615       4,308,737  

Stitch Fix, Inc., Class A(a)

     969,841       4,286,697  

Upbound Group, Inc.

     246,505       5,654,825  

Urban Outfitters, Inc.(a)

     94,469       6,603,383  

Victoria’s Secret & Co.(a)

     144,050       3,055,300  

Warby Parker, Inc., Class A(a)

     329,599       6,977,611  

Wayfair, Inc., Class A(a)

     151,744       6,257,923  

Winmark Corp.

     9,709       4,124,577  

Zumiez, Inc.(a)

     262,529       3,278,987  
   

 

 

  
       147,650,270  
Technology Hardware, Storage & Peripherals — 0.2%  

IonQ, Inc.(a)(b)

     208,342       8,404,516  
   

 

 

  
Textiles, Apparel & Luxury Goods — 0.6%            

G-III Apparel Group Ltd.(a)

     351,465       10,210,058  

Ralph Lauren Corp., Class A

     33,926       9,391,056  

Unifi, Inc.(a)

     38,167       191,598  

VF Corp.

     333,140       4,150,925  
   

 

 

  
      23,943,637  
Tobacco — 0.1%            

Turning Point Brands, Inc.

     74,735       5,554,305  
   

 

 

  
Trading Companies & Distributors — 2.0%            

BlueLinx Holdings, Inc.(a)

     62,208       4,162,959  

Boise Cascade Co.

     222,862       19,362,251  

DNOW, Inc.(a)

     853,808       12,311,911  

FTAI Aviation Ltd.

     157,071       18,400,868  

GATX Corp.

     17,540       2,793,070  

Global Industrial Co.

     15,408       401,378  

H&E Equipment Services, Inc.

     33,707       3,190,031  

Herc Holdings, Inc.

     37,306       4,625,944  

McGrath RentCorp

     39,022       4,385,292  

MRC Global, Inc.(a)

     78,017       968,191  

Rush Enterprises, Inc., Class A

     152,554       7,574,306  

Xometry, Inc., Class A(a)(b)

     52,356       1,735,601  
   

 

 

  
      79,911,802  
Security   Shares     Value  
Water Utilities — 0.1%            

California Water Service Group

     49,237     $ 2,326,448  

H2O America

     61,042       3,203,484  
   

 

 

  
      5,529,932  
Wireless Telecommunication Services — 0.1%  

Spok Holdings, Inc.

     25,508       413,230  

Telephone & Data Systems, Inc.

     97,056       3,334,844  
   

 

 

  
      3,748,074  
   

 

 

  

Total Common Stocks — 98.8%
(Cost: $3,792,858,361)

 

      3,917,923,109  
   

 

 

  
Rights            
Biotechnology — 0.0%            

Albireo Pharma Inc., CVR(a)(b)(c)

     28,456       99,596  

Chinook Therapeutics, Inc., CVR(a)(c)

     35,990       5,758  

Flexion Therapeutics, Inc., CVR(a)(c)

     73,745       20,649  

Jounce Therapeutics, Inc., CVR(a)

     10,334       90  

Poseida Therapeutics, Inc., CVR(a)(c)

     104,999       145,949  
   

 

 

  
          272,042  
Health Care Providers & Services — 0.0%  

Surface Oncology, Inc., CVR(a)

     58,721       5,515  
   

 

 

  
Paper & Forest Products — 0.0%            

Resolute Forest Products, Inc., CVR(a)(c)

     72,036       77,079  
   

 

 

  

Total Rights — 0.0%
(Cost: $ —)

 

     354,636  
   

 

 

  

Total Long-Term Investments — 98.8%
(Cost: $3,792,858,361)

 

     3,918,277,745  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 4.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(d)(e)(f)

     126,783,679       126,834,392  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(d)(e)

     41,068,103       41,068,103  
   

 

 

  

Total Short-Term Securities — 4.2%
(Cost: $167,892,974)

 

     167,902,495  
   

 

 

  

Total Investments — 103.0%
(Cost: $3,960,751,335)

 

     4,086,180,240  

Liabilities in Excess of Other Assets — (3.0)%

 

     (119,023,340 ) 
   

 

 

  

Net Assets — 100.0%

     $ 3,967,156,900  
   

 

 

  

 

(a)

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

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

(d) 

Affiliate of the Fund.

(e) 

Annualized 7-day yield as of period end.

(f) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

 

22  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		     Shares
Held at
05/31/25		     Income     Capital Gain
Distributions
from
Underlying
Funds		         
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $  153,856,296     $ —     $ (27,035,366 )(a)    $ 3,941             $ 9,521     $ 126,834,392       126,783,679     $ 432,236 (b)    $ —     
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     34,625,874       6,442,229 (a)      —       —            —       41,068,103       41,068,103       1,916,253       —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     
          $ 3,941       $ 9,521     $ 167,902,495       $ 2,348,489     $ —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

            

Russell 2000 E-Mini Index

      447        06/20/25      $ 46,227      $ 262,930  
           

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 262,930      $ —      $ —      $ —      $ 262,930  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended May 31, 2025, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ (3,406,621 )     $ —      $ —      $ —      $ (3,406,621 ) 
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ 291,006      $ —      $ —      $ —      $ 291,006  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   23

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

  

Futures contracts:

   

Average notional value of contracts — long

    $ 45,380,018  

 

  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1            Level 2             Level 3             Total  

 

  

Assets

                   

Investments

                          

Long-Term Investments

                   

Common Stocks

                   

Aerospace & Defense

   $ 77,754,596        $ —                $    —                $ 77,754,596  

Air Freight & Logistics

     580,149          —           —           580,149  

Automobile Components

     50,528,074          —           —           50,528,074  

Automobiles

     3,222,570          —           —           3,222,570  

Banks

     369,700,431          5,993           —           369,706,424  

Beverages

     8,804,332          —           —           8,804,332  

Biotechnology

     326,033,592          —           —           326,033,592  

Broadline Retail

     834,436          —           —           834,436  

Building Products

     47,691,099          —           —           47,691,099  

Capital Markets

     117,208,913          —           —           117,208,913  

Chemicals

     20,392,259          —           —           20,392,259  

Commercial Services & Supplies

     35,547,064          —           —           35,547,064  

Communications Equipment

     42,175,563          —           —           42,175,563  

Construction & Engineering

     112,093,795          —           —           112,093,795  

Construction Materials

     659,436          —           —           659,436  

Consumer Finance

     78,074,960          —           —           78,074,960  

Consumer Staples Distribution & Retail

     75,327,544          —           —           75,327,544  

Containers & Packaging

     10,553,290          —           —           10,553,290  

Distributors

     527,379          —           —           527,379  

Diversified Consumer Services

     55,574,329          —           —           55,574,329  

Diversified REITs

     9,824,981          —           —           9,824,981  

Diversified Telecommunication Services

     17,982,399          —           —           17,982,399  

Electric Utilities

     12,265,437          —           —           12,265,437  

Electrical Equipment

     43,785,879          —           —           43,785,879  

Electronic Equipment, Instruments & Components

     116,968,046          —           —           116,968,046  

Energy Equipment & Services

     71,307,255          —           —           71,307,255  

Entertainment

     13,633,721          —           —           13,633,721  

Financial Services

     88,757,354          —           —           88,757,354  

Food Products

     29,252,052          —           —           29,252,052  

Gas Utilities

     35,808,454          —           —           35,808,454  

Ground Transportation

     18,650,175          —           —           18,650,175  

Health Care Equipment & Supplies

     64,263,073          —           —           64,263,073  

Health Care Providers & Services

     157,122,472          —           —           157,122,472  

Health Care REITs

     9,411,984          —           —           9,411,984  

Health Care Technology

     16,616,391          —           —           16,616,391  

Hotel & Resort REITs

     26,336,385          —           —           26,336,385  

Hotels, Restaurants & Leisure

     62,388,557          —           —           62,388,557  

Household Durables

     66,200,293          —           —           66,200,293  

Household Products

     14,860,185          —           —           14,860,185  

Independent Power and Renewable Electricity Producers

     218          —           —           218  

Industrial REITs

     20,628,721          —           —           20,628,721  

Insurance

     66,214,227          —           —           66,214,227  

Interactive Media & Services

     51,418,673          —           —           51,418,673  

IT Services

     9,873,937          —           —           9,873,937  

Leisure Products

     4,974,742          —           —           4,974,742  

Life Sciences Tools & Services

     15,909,211          —           —           15,909,211  

 

 

24  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Small Cap Core Fund

 

Fair Value Hierarchy as of Period End (continued)

 

 

  
    Level 1            Level 2           Level 3           Total  

 

  

Common Stocks (continued)

               

Machinery

   $ 106,120,169               $ —              $ —              $ 106,120,169  

Marine Transportation

     12,731,751          —         —         12,731,751  

Media

     25,880,617          —         —         25,880,617  

Metals & Mining

     109,328,508          —         —         109,328,508  

Mortgage Real Estate Investment Trusts (REITs)

     1,427,904          —         —         1,427,904  

Multi-Utilities

     41,810,009          —         —         41,810,009  

Office REITs

     11,642,287          —         —         11,642,287  

Oil, Gas & Consumable Fuels

     91,269,150          —         —         91,269,150  

Passenger Airlines

     35,823,132          —         —         35,823,132  

Personal Care Products

     12,530,512          —         —         12,530,512  

Pharmaceuticals

     88,207,273          —         —         88,207,273  

Professional Services

     105,775,946          —         —         105,775,946  

Real Estate Management & Development

     17,955,104          —         —         17,955,104  

Residential REITs

     9,481,395          —         —         9,481,395  

Retail REITs

     73,033,484          —         —         73,033,484  

Semiconductors & Semiconductor Equipment

     99,455,992          —         —         99,455,992  

Software

     264,572,563          —         —         264,572,563  

Specialized REITs

     58,390,151          —         —         58,390,151  

Specialty Retail

     147,650,270          —         —         147,650,270  

Technology Hardware, Storage & Peripherals

     8,404,516          —         —         8,404,516  

Textiles, Apparel & Luxury Goods

     23,943,637          —         —         23,943,637  

Tobacco

     5,554,305          —         —         5,554,305  

Trading Companies & Distributors

     79,911,802          —         —         79,911,802  

Water Utilities

     5,529,932          —         —         5,529,932  

Wireless Telecommunication Services

     3,748,074          —         —         3,748,074  

Rights

     —          5,605         349,031         354,636  

Short-Term Securities

               

Money Market Funds

     167,902,495          —         —         167,902,495  
 

 

 

       

 

 

      

 

 

      

 

 

  
  $ 4,085,819,611        $ 11,598       $ 349,031       $ 4,086,180,240  
 

 

 

       

 

 

      

 

 

      

 

 

  

Derivative Financial Instruments(a)

               

Assets

               

Equity Contracts

   $ 262,930        $ —       $ —       $ 262,930  
 

 

 

       

 

 

      

 

 

      

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   25

Schedule of Investments

May 31, 2025

   

BlackRock Advantage Large Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 1.3%  

Lockheed Martin Corp.

     79,093     $ 38,152,881  
   

 

 

  
Air Freight & Logistics — 1.1%            

Expeditors International of Washington, Inc.

     140,820       15,874,639  

FedEx Corp.

     78,452       17,110,381  
   

 

 

  
      32,985,020  
Automobile Components — 0.7%            

BorgWarner, Inc.

     682,630       22,588,227  
   

 

 

  
Automobiles — 1.4%            

Tesla, Inc.(a)

     125,189       43,372,981  
   

 

 

  
Banks — 4.0%            

Bank of America Corp.

     1,177,229       51,951,116  

JPMorgan Chase & Co.

     139,667       36,872,088  

PNC Financial Services Group, Inc. (The)

     177,544       30,858,922  
   

 

 

  
          119,682,126  
Beverages — 0.3%            

Coca-Cola Co. (The)

     136,751       9,859,747  
   

 

 

  
Biotechnology — 3.1%            

AbbVie, Inc.

     157,245       29,264,867  

Biogen, Inc.(a)

     116,447       15,113,656  

BioMarin Pharmaceutical, Inc.(a)

     224,253       13,022,372  

Natera, Inc.(a)

     65,187       10,281,946  

Regeneron Pharmaceuticals, Inc.

     31,539       15,462,941  

United Therapeutics Corp.(a)

     28,410       9,058,528  
   

 

 

  
      92,204,310  
Broadline Retail — 4.1%            

Amazon.com, Inc.(a)

     611,201        125,302,317  
   

 

 

  
Capital Markets — 5.9%            

Charles Schwab Corp. (The)

     494,968       43,725,473  

CME Group, Inc., Class A

     54,344       15,705,416  

Intercontinental Exchange, Inc.

     138,489       24,900,322  

Invesco Ltd.

     637,615       9,219,913  

Moody’s Corp.

     82,202       39,401,063  

Morgan Stanley

     346,441       44,354,841  
   

 

 

  
      177,307,028  
Commercial Services & Supplies — 1.1%            

Cintas Corp.

     149,560       33,875,340  
   

 

 

  
Communications Equipment — 0.6%            

Motorola Solutions, Inc.

     46,704       19,399,908  
   

 

 

  
Construction & Engineering — 1.1%            

Comfort Systems U.S.A., Inc.

     29,219       13,973,403  

MasTec, Inc.(a)

     126,485       19,722,806  
   

 

 

  
      33,696,209  
Consumer Staples Distribution & Retail — 3.4%  

Costco Wholesale Corp.

     45,709       47,545,588  

Walmart, Inc.

     555,398       54,828,890  
   

 

 

  
      102,374,478  
Containers & Packaging — 0.7%            

Packaging Corp. of America

     106,569       20,585,934  
   

 

 

  
Electric Utilities — 1.2%            

Entergy Corp.

     435,074       36,232,963  
   

 

 

  
Electrical Equipment — 0.8%            

Eaton Corp. PLC

     70,804       22,671,441  
   

 

 

  
Electronic Equipment, Instruments & Components — 1.5%  

Amphenol Corp., Class A

     222,426       20,002,770  
Security   Shares     Value  
Electronic Equipment, Instruments & Components (continued)  

Corning, Inc.

     429,565     $ 21,302,128  

Flex Ltd.(a)

     118,582       5,016,019  
   

 

 

  
      46,320,917  
Energy Equipment & Services — 0.4%            

Halliburton Co.

     605,675       11,865,173  
   

 

 

  
Entertainment — 1.5%            

Netflix, Inc.(a)

     24,164       29,171,506  

Walt Disney Co. (The)

     153,750       17,379,900  
   

 

 

  
      46,551,406  
Financial Services — 2.0%            

Berkshire Hathaway, Inc., Class B(a)

     39,217       19,763,799  

Mastercard, Inc., Class A

     25,406       14,877,754  

Visa, Inc., Class A

     69,395       25,342,360  
   

 

 

  
      59,983,913  
Ground Transportation — 0.7%            

Uber Technologies, Inc.(a)

     243,720       20,511,475  
   

 

 

  
Health Care Equipment & Supplies — 2.6%            

Boston Scientific Corp.(a)

     342,133       36,012,920  

Medtronic PLC

     513,571       42,616,121  
   

 

 

  
      78,629,041  
Health Care Providers & Services — 2.3%            

Cardinal Health, Inc.

     249,074       38,466,988  

Centene Corp.(a)

     175,665       9,914,533  

UnitedHealth Group, Inc.

     70,309       21,226,990  
   

 

 

  
      69,608,511  
Health Care REITs — 0.9%            

Ventas, Inc.

     433,410       27,859,595  
   

 

 

  
Hotel & Resort REITs — 0.0%            

RLJ Lodging Trust

     51       372  
   

 

 

  
Hotels, Restaurants & Leisure — 1.6%            

Booking Holdings, Inc.

     5,149       28,416,971  

DoorDash, Inc., Class A(a)

     27,960       5,833,854  

Yum! Brands, Inc.

     99,965       14,388,962  
   

 

 

  
      48,639,787  
Household Durables — 0.6%            

DR Horton, Inc.

     67,715       7,994,433  

Toll Brothers, Inc.

     110,265       11,495,126  
   

 

 

  
      19,489,559  
Household Products — 0.9%            

Colgate-Palmolive Co.

     296,578       27,563,959  
   

 

 

  
Insurance — 1.8%            

Progressive Corp. (The)

     49,375       14,068,419  

Travelers Cos., Inc. (The)

     142,155       39,192,133  
   

 

 

  
       53,260,552  
Interactive Media & Services — 7.0%            

Alphabet, Inc., Class A

     452,007       77,627,682  

Alphabet, Inc., Class C, NVS

     267,858       46,299,255  

Meta Platforms, Inc., Class A

     136,799       88,575,985  
   

 

 

  
      212,502,922  
Machinery — 1.7%            

Flowserve Corp.

     455,469       22,732,458  

Parker-Hannifin Corp.

     44,459       29,551,897  
   

 

 

  
      52,284,355  
 

 

 

26  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Core Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Media — 0.8%            

Comcast Corp., Class A

     644,038     $ 22,264,394  

Fox Corp., Class B

     7,459       375,038  
   

 

 

  
      22,639,432  
Metals & Mining — 0.4%            

Nucor Corp.

     98,373       10,758,071  
   

 

 

  
Oil, Gas & Consumable Fuels — 3.0%            

Cheniere Energy, Inc.

     105,730       25,056,953  

Devon Energy Corp.

     849,337       25,700,938  

Targa Resources Corp.

     95,324       15,054,519  

Williams Cos., Inc. (The)

     395,242       23,916,093  
   

 

 

  
      89,728,503  
Passenger Airlines — 0.4%            

Delta Air Lines, Inc.

     225,874       10,930,043  
   

 

 

  
Pharmaceuticals — 3.9%            

Bristol-Myers Squibb Co.

     448,848       21,670,381  

Eli Lilly & Co.

     45,893       33,853,889  

Merck & Co., Inc.

     359,658       27,636,121  

Pfizer, Inc.

     1,520,287       35,711,542  
   

 

 

  
      118,871,933  
Retail REITs — 0.8%            

Simon Property Group, Inc.

     140,481       22,908,237  
   

 

 

  
Semiconductors & Semiconductor Equipment — 10.9%  

Advanced Micro Devices, Inc.(a)

     155,532       17,222,058  

Broadcom, Inc.

     258,416       62,554,761  

Lam Research Corp.

     343,050       27,715,010  

Marvell Technology, Inc.

     264,220       15,903,402  

NVIDIA Corp.

     1,314,340       177,606,764  

QUALCOMM, Inc.

     126,182       18,321,626  

Texas Instruments, Inc.

     57,183       10,455,912  
   

 

 

  
       329,779,533  
Software — 11.8%            

Adobe, Inc.(a)

     58,598       24,323,444  

Autodesk, Inc.(a)

     110,061       32,591,263  

Elastic NV(a)

     162,441       13,136,604  

Fair Isaac Corp.(a)

     5,276       9,107,853  

InterDigital, Inc.

     6       1,304  
Security   Shares     Value  
Software (continued)            

Intuit, Inc.

     16,370     $ 12,334,304  

Microsoft Corp.

     455,217       209,563,698  

Palantir Technologies, Inc., Class A(a)

     120,612       15,894,249  

SailPoint, Inc.(a)

     35,225       620,665  

Salesforce, Inc.

     114,255       30,319,849  

ServiceNow, Inc.(a)

     8,202       8,292,960  
   

 

 

  
      356,186,193  
Specialized REITs — 1.1%            

Equinix, Inc.

     38,542       34,256,901  
   

 

 

  
Specialty Retail — 1.8%            

Home Depot, Inc. (The)

     151,366       55,746,584  
   

 

 

  
Technology Hardware, Storage & Peripherals — 5.7%  

Apple Inc.

     864,300       173,594,655  
   

 

 

  
Textiles, Apparel & Luxury Goods — 0.7%            

Ralph Lauren Corp., Class A

     76,378       21,142,194  
   

 

 

  
Tobacco — 1.3%            

Philip Morris International, Inc.

     213,753       38,601,654  
   

 

 

  

Total Long-Term Investments — 98.9%
(Cost: $2,059,256,417)

 

     2,990,506,380  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 1.0%            

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(b)(c)

     29,457,388       29,457,388  
   

 

 

  

Total Short-Term Securities — 1.0%
(Cost: $29,457,388)

 

     29,457,388  
   

 

 

  

Total Investments — 99.9%
(Cost: $2,088,713,805)

 

     3,019,963,768  

Other Assets Less Liabilities — 0.1%

 

     2,036,280  
   

 

 

  

Net Assets — 100.0%

     $  3,022,000,048  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

Affiliate of the Fund.

(c) 

Annualized 7-day yield as of period end.

 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   27

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Core Fund

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		    

Change in
Unrealized
Appreciation
(Depreciation)

     Value at
05/31/25		     Shares
Held at
05/31/25		     Income     Capital Gain
Distributions
from
Underlying
Funds		         
 

BlackRock Cash Funds: Institutional, SL Agency Shares(a)

   $  7,654,832     $   —     $ (7,649,662 )(b)    $ (5,350 )            $   180     $   —       —     $ 13,820 (c)    $   —     
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     25,852,986       3,604,402 (b)      —       —         —       29,457,388       29,457,388       1,296,740       —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     
          $ (5,350 )      $ 180     $ 29,457,388       $ 1,310,560     $ —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     

 

  (a) 

As of period end, the entity is no longer held.

 
  (b) 

Represents net amount purchased (sold).

 
  (c) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

            

S&P 500 E-Mini Index

      103        06/20/25      $ 30,467      $ 2,224,979  
           

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 2,224,979      $ —      $ —      $ —      $ 2,224,979  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended May 31, 2025, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ 214,457      $ —      $ —      $ —      $ 214,457  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ 1,423,821      $ —      $ —      $ —      $ 1,423,821  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

 

28  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Core Fund

 

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

  

Futures contracts:

   

Average notional value of contracts — long

    $ 31,917,228  

 

  

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

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1            Level 2           Level 3           Total  

 

  

Assets

               

Investments

               

Long-Term Investments

               

Common Stocks

   $ 2,990,506,380               $   —              $   —              $ 2,990,506,380  

Short-Term Securities

               

Money Market Funds

     29,457,388          —         —         29,457,388  
 

 

 

       

 

 

      

 

 

      

 

 

  
  $ 3,019,963,768        $ —       $ —       $ 3,019,963,768  
 

 

 

       

 

 

      

 

 

      

 

 

  

Derivative Financial Instruments(a)

               

Assets

               

Equity Contracts

   $ 2,224,979        $ —       $ —       $ 2,224,979  
 

 

 

       

 

 

      

 

 

      

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   29

Schedule of Investments 

May 31, 2025

   

BlackRock Advantage Large Cap Value Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

Common Stocks

 

Aerospace & Defense — 3.1%  

Curtiss-Wright Corp.

     744     $ 327,442  

General Dynamics Corp.

     7,978       2,221,793  

General Electric Co.

     7,238       1,779,896  

HEICO Corp., Class A

     11,415       2,692,114  

Lockheed Martin Corp.

     12,626       6,090,530  

Northrop Grumman Corp.

     2,256       1,093,641  

RTX Corp.

     38,989       5,321,219  
   

 

 

  
      19,526,635  
Air Freight & Logistics — 1.5%            

Expeditors International of Washington, Inc.

     15,819       1,783,276  

FedEx Corp.

     18,503       4,035,504  

United Parcel Service, Inc., Class B

     38,613       3,766,312  
   

 

 

  
      9,585,092  
Automobile Components — 0.5%            

BorgWarner, Inc.

     101,684       3,364,724  
   

 

 

  
Automobiles — 0.3%            

General Motors Co.

     43,319       2,149,056  
   

 

 

  
Banks — 8.2%            

Bank of America Corp.

     326,388        14,403,503  

Citigroup, Inc.

     108,579       8,178,170  

Citizens Financial Group, Inc.

     36,060       1,455,021  

FNB Corp.

     21,898       303,725  

Huntington Bancshares, Inc.

     26,192       409,381  

JPMorgan Chase & Co.

     67,756       17,887,584  

PNC Financial Services Group, Inc. (The)

     49,147       8,542,240  
   

 

 

  
      51,179,624  
Beverages — 0.8%            

Coca-Cola Co. (The)

     51,524       3,714,880  

Keurig Dr. Pepper, Inc.

     41,494       1,397,103  
   

 

 

  
      5,111,983  
Biotechnology — 3.7%            

AbbVie, Inc.

     26,684       4,966,159  

Amgen, Inc.

     1,148       330,831  

Biogen, Inc.(a)

     28,671       3,721,209  

BioMarin Pharmaceutical, Inc.(a)

     43,333       2,516,347  

Gilead Sciences, Inc.

     42,217       4,647,247  

Incyte Corp.(a)

     11,777       766,212  

Ionis Pharmaceuticals, Inc.(a)

     6,426       215,335  

Moderna, Inc.(a)

     3,602       95,669  

Natera, Inc.(a)

     6,886       1,086,129  

Regeneron Pharmaceuticals, Inc.

     5,623       2,756,845  

Sarepta Therapeutics, Inc.(a)

     10,939       411,306  

Ultragenyx Pharmaceutical, Inc.(a)

     9,552       325,055  

United Therapeutics Corp.(a)

     3,880       1,237,138  
   

 

 

  
      23,075,482  
Broadline Retail — 0.2%            

Amazon.com, Inc.(a)

     5,498       1,127,145  
   

 

 

  
Building Products — 0.5%            

Allegion PLC

     603       86,048  

Armstrong World Industries, Inc.

     3,069       477,629  

Johnson Controls International PLC

     11,216       1,136,966  

Owens Corning

     2,371       317,595  

Trane Technologies PLC

     3,141       1,351,478  
   

 

 

  
      3,369,716  
Capital Markets — 7.5%            

Blackstone, Inc., Class A

     478       66,327  

Cboe Global Markets, Inc.

     2,450       561,344  
Security   Shares     Value  
Capital Markets (continued)            

Charles Schwab Corp. (The)

     98,536     $ 8,704,670  

CME Group, Inc., Class A

     16,087       4,649,143  

Etoro Group Ltd., Class A(a)(b)

     10,210       604,432  

Evercore, Inc., Class A

     737       170,608  

Interactive Brokers Group, Inc., Class A

     2,619       549,152  

Intercontinental Exchange, Inc.

     38,804       6,976,959  

Invesco Ltd.

     171,774       2,483,852  

Janus Henderson Group PLC

     3,361       122,105  

Moody’s Corp.

     5,395       2,585,932  

Morgan Stanley

     79,046       10,120,260  

Nasdaq, Inc.

     27,868       2,328,093  

S&P Global, Inc.

     11,526       5,911,224  

XP, Inc., Class A

     37,180       719,805  
   

 

 

  
       46,553,906  
Chemicals — 1.3%            

DuPont de Nemours, Inc.

     42,122       2,813,750  

Ecolab, Inc.

     3,177       843,875  

Huntsman Corp.

     93,393       1,040,398  

LyondellBasell Industries NV, Class A

     28,673       1,619,738  

Mosaic Co. (The)

     32,858       1,187,488  

Scotts Miracle-Gro Co. (The)

     9,074       540,447  
   

 

 

  
      8,045,696  
Commercial Services & Supplies — 1.4%            

Cintas Corp.

     27,422       6,211,083  

Waste Connections, Inc.

     12,818       2,526,300  

Waste Management, Inc.

     1,161       279,766  
   

 

 

  
      9,017,149  
Communications Equipment — 1.3%            

Cisco Systems, Inc.

     61,843       3,898,583  

Juniper Networks, Inc.

     8,123       291,859  

Motorola Solutions, Inc.

     9,678       4,020,048  
   

 

 

  
      8,210,490  
Construction & Engineering — 1.0%            

AECOM

     6,107       670,854  

Comfort Systems U.S.A., Inc.

     3,726       1,781,885  

EMCOR Group, Inc.

     747       352,479  

MasTec, Inc.(a)

     20,359       3,174,579  
   

 

 

  
      5,979,797  
Construction Materials — 0.0%            

CRH PLC

     974       88,790  
   

 

 

  
Consumer Finance — 0.8%            

American Express Co.

     13,498       3,969,087  

OneMain Holdings, Inc.

     13,846       717,777  
   

 

 

  
      4,686,864  
Consumer Staples Distribution & Retail — 3.6%            

Costco Wholesale Corp.

     4,508       4,689,131  

Sprouts Farmers Market, Inc.(a)

     2,486       429,730  

Target Corp.

     12,788       1,202,200  

Walmart, Inc.

     163,917       16,181,886  
   

 

 

  
      22,502,947  
Containers & Packaging — 1.0%            

Crown Holdings, Inc.

     21,834       2,150,649  

Packaging Corp. of America

     22,140       4,276,784  
   

 

 

  
      6,427,433  
Diversified Consumer Services — 0.1%            

Bright Horizons Family Solutions, Inc.(a)

     4,767       615,896  
   

 

 

  
 

 

 

30  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Value Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Diversified Telecommunication Services — 1.4%  

AT&T Inc.

     106,472     $ 2,959,921  

Verizon Communications, Inc.

     130,181       5,722,757  
   

 

 

  
      8,682,678  
Electric Utilities — 2.3%            

Duke Energy Corp.

     2,731       321,493  

Edison International

     9,992       556,055  

Entergy Corp.

     86,681       7,218,794  

Exelon Corp.

     43,696       1,914,759  

IDACORP, Inc.

     8,747       1,040,456  

NextEra Energy, Inc.

     11,563       816,810  

OGE Energy Corp.

     45,170       2,008,710  

PG&E Corp.

     33,653       568,062  
   

 

 

  
      14,445,139  
Electrical Equipment — 1.7%            

AMETEK, Inc.

     13,432       2,400,836  

Eaton Corp. PLC

     20,559       6,582,992  

GE Vernova, Inc.

     3,818       1,805,837  
   

 

 

  
      10,789,665  
Electronic Equipment, Instruments & Components — 1.9%  

Amphenol Corp., Class A

     31,941       2,872,454  

Badger Meter, Inc.

     635       157,620  

Corning, Inc.

     84,579       4,194,273  

Flex Ltd.(a)

     62,080       2,625,984  

Insight Enterprises, Inc.(a)

     1,427       186,067  

Keysight Technologies, Inc.(a)

     2,784       437,199  

TE Connectivity PLC

     2,407       385,288  

Trimble, Inc.(a)

     6,313       449,927  

Zebra Technologies Corp., Class A(a)

     1,409       408,286  
   

 

 

  
      11,717,098  
Energy Equipment & Services — 0.5%            

Halliburton Co.

     149,025       2,919,400  

TechnipFMC PLC

     14,155       440,928  
   

 

 

  
      3,360,328  
Entertainment — 0.9%            

Take-Two Interactive Software, Inc.(a)

     786       177,856  

Walt Disney Co. (The)

     46,123       5,213,744  
   

 

 

  
      5,391,600  
Financial Services — 2.8%            

Berkshire Hathaway, Inc., Class B(a)

     33,218       16,740,543  

Remitly Global, Inc.(a)(b)

     48,934       1,045,230  
   

 

 

  
       17,785,773  
Food Products — 0.2%            

Ingredion, Inc.

     9,827       1,367,132  

Kellanova

     1,612       133,200  
   

 

 

  
      1,500,332  
Ground Transportation — 0.6%            

Knight-Swift Transportation Holdings, Inc.

     53,470       2,369,791  

Uber Technologies, Inc.(a)

     9,237       777,386  

Union Pacific Corp.

     2,555       566,341  
   

 

 

  
      3,713,518  
Health Care Equipment & Supplies — 2.7%            

Boston Scientific Corp.(a)

     50,518       5,317,525  

Edwards Lifesciences Corp.(a)

     26,690       2,087,692  

Medtronic PLC

     115,619       9,594,064  
   

 

 

  
      16,999,281  
Health Care Providers & Services — 3.7%            

Acadia Healthcare Co., Inc.(a)

     19,585       443,404  

Cardinal Health, Inc.

     44,739       6,909,491  
Security   Shares     Value  
Health Care Providers & Services (continued)            

Centene Corp.(a)

     45,286     $ 2,555,942  

Cigna Group (The)

     3,977       1,259,277  

CVS Health Corp.

     13,647       873,954  

Elevance Health, Inc.

     3,250       1,247,480  

Encompass Health Corp.

     10,897       1,317,447  

McKesson Corp.

     442       318,023  

Tenet Healthcare Corp.(a)

     3,506       591,708  

UnitedHealth Group, Inc.

     22,404       6,763,992  

Universal Health Services, Inc., Class B

     2,733       520,227  
   

 

 

  
      22,800,945  
Health Care REITs — 0.6%            

Ventas, Inc.

     53,484       3,437,951  

Welltower, Inc.

     3,745       577,779  
   

 

 

  
      4,015,730  
Health Care Technology — 0.1%            

Veeva Systems, Inc., Class A(a)

     1,612       450,876  
   

 

 

  
Hotels, Restaurants & Leisure — 1.4%            

Booking Holdings, Inc.

     724       3,995,705  

Brinker International, Inc.(a)

     1,317       227,354  

Flutter Entertainment PLC(a)

     890       224,903  

McDonald’s Corp.

     5,612       1,761,326  

Texas Roadhouse, Inc.

     2,612       509,889  

Yum! Brands, Inc.

     15,883       2,286,199  
   

 

 

  
      9,005,376  
Household Durables — 1.0%            

DR Horton, Inc.

     13,205       1,558,982  

Garmin Ltd.

     10,498       2,130,779  

NVR, Inc.(a)

     122       868,143  

Taylor Morrison Home Corp., Class A(a)

     2,884       162,312  

Toll Brothers, Inc.

     12,127       1,264,240  
   

 

 

  
      5,984,456  
Household Products — 1.9%            

Colgate-Palmolive Co.

     59,283       5,509,762  

Procter & Gamble Co. (The)

     38,449       6,532,101  
   

 

 

  
       12,041,863  
Industrial Conglomerates — 0.6%            

Honeywell International, Inc.

     16,395       3,716,255  
   

 

 

  
Insurance — 4.0%            

Allstate Corp. (The)

     21,585       4,530,044  

Aon PLC, Class A

     6,848       2,548,004  

Brown & Brown, Inc.

     1,443       162,915  

CNA Financial Corp.

     8,583       411,212  

First American Financial Corp.

     2,484       138,632  

Globe Life, Inc.

     13,190       1,607,465  

Hanover Insurance Group, Inc. (The)

     4,538       798,597  

Hartford Insurance Group, Inc. (The)

     6,981       906,413  

Progressive Corp. (The)

     4,899       1,395,872  

Reinsurance Group of America, Inc.

     4,370       888,377  

Travelers Cos., Inc. (The)

     30,146       8,311,252  

Unum Group

     38,655       3,158,500  
   

 

 

  
      24,857,283  
Interactive Media & Services — 0.8%            

Alphabet, Inc., Class A

     19,101       3,280,406  

Meta Platforms, Inc., Class A

     1,495       967,997  

Pinterest, Inc., Class A(a)

     16,854       524,328  
   

 

 

  
      4,772,731  
IT Services — 1.2%            

Accenture PLC, Class A

     17,485       5,539,598  
 

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   31

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Value Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
IT Services (continued)            

GoDaddy, Inc., Class A(a)

     306     $ 55,738  

International Business Machines Corp.

     912       236,263  

MongoDB, Inc., Class A(a)

     585       110,465  

VeriSign, Inc.

     6,415       1,747,895  
   

 

 

  
      7,689,959  
Life Sciences Tools & Services — 1.0%            

Agilent Technologies, Inc.

     4,023       450,254  

Danaher Corp.

     8,465       1,607,504  

Thermo Fisher Scientific, Inc.

     9,592       3,863,849  
   

 

 

  
      5,921,607  
Machinery — 2.9%            

Caterpillar, Inc.

     2,088       726,687  

Crane Co.

     1,465       251,101  

Cummins, Inc.

     9,628       3,095,209  

Flowserve Corp.

     45,377       2,264,766  

Illinois Tool Works, Inc.

     4,049       992,329  

Parker-Hannifin Corp.

     11,345       7,541,022  

Pentair PLC

     29,483       2,924,124  

Westinghouse Air Brake Technologies Corp.

     1,988       402,212  
   

 

 

  
      18,197,450  
Media — 1.5%            

Comcast Corp., Class A

     184,510       6,378,511  

Fox Corp., Class A, NVS

     42,298       2,323,852  

Fox Corp., Class B

     3,318       166,829  

New York Times Co. (The), Class A

     11,440       653,453  
   

 

 

  
      9,522,645  
Metals & Mining — 1.0%            

Alcoa Corp.

     7,024       188,032  

Freeport-McMoRan, Inc.

     26,295       1,011,832  

Newmont Corp.

     43,184       2,276,661  

Nucor Corp.

     19,601       2,143,565  

Reliance, Inc.

     1,014       296,919  
   

 

 

  
      5,917,009  
Multi-Utilities — 1.1%            

CMS Energy Corp.

     10,312       724,212  

Consolidated Edison, Inc.

     31,436       3,284,748  

NiSource, Inc.

     76,143       3,010,694  
   

 

 

  
      7,019,654  
Oil, Gas & Consumable Fuels — 5.4%            

Antero Resources Corp.(a)

     29,195       1,093,353  

Cheniere Energy, Inc.

     14,298       3,388,483  

Chevron Corp.

     43,316       5,921,297  

Chord Energy Corp.

     4,637       417,330  

Civitas Resources, Inc.

     12,601       344,889  

ConocoPhillips

     33,290       2,841,302  

Devon Energy Corp.

     179,100       5,419,566  

EOG Resources, Inc.

     1,502       163,072  

EQT Corp.

     5,384       296,820  

Exxon Mobil Corp.

     66,384       6,791,083  

Marathon Petroleum Corp.

     867       139,362  

Ovintiv, Inc.

     20,267       725,964  

Targa Resources Corp.

     14,593       2,304,672  

Valero Energy Corp.

     3,311       427,020  

Williams Cos., Inc. (The)

     61,271       3,707,508  
   

 

 

  
       33,981,721  
Passenger Airlines — 0.5%            

Alaska Air Group, Inc.(a)

     9,878       503,086  
Security   Shares     Value  
Passenger Airlines (continued)            

American Airlines Group, Inc.(a)

     34,247     $ 390,758  

Delta Air Lines, Inc.

     41,781       2,021,783  
   

 

 

  
      2,915,627  
Pharmaceuticals — 3.4%            

Bristol-Myers Squibb Co.

     115,636       5,582,906  

Johnson & Johnson

     31,306       4,859,004  

Merck & Co., Inc.

     24,206       1,859,989  

Pfizer, Inc.

     388,277       9,120,627  
   

 

 

  
      21,422,526  
Professional Services — 0.2%            

Booz Allen Hamilton Holding Corp., Class A

     5,064       538,050  

CACI International, Inc., Class A(a)

     1,330       569,240  

Dun & Bradstreet Holdings, Inc.

     7,527       67,818  

UL Solutions, Inc., Class A

     1,406       100,529  
   

 

 

  
      1,275,637  
Real Estate Management & Development — 0.0%  

Zillow Group, Inc., Class A(a)

     1,147       75,897  
   

 

 

  
Retail REITs — 1.8%            

Brixmor Property Group, Inc.

     11,297       287,057  

Kimco Realty Corp.

     189,495       4,028,663  

NNN REIT, Inc.

     38,967       1,627,262  

Simon Property Group, Inc.

     33,939       5,534,433  
   

 

 

  
      11,477,415  
Semiconductors & Semiconductor Equipment — 2.9%  

Advanced Micro Devices, Inc.(a)

     12,230       1,354,228  

Analog Devices, Inc.

     3,295       705,064  

Credo Technology Group Holding Ltd.(a)

     7,628       465,003  

Intel Corp.

     72,971       1,426,583  

Lam Research Corp.

     20,144       1,627,434  

Marvell Technology, Inc.

     48,681       2,930,109  

Micron Technology, Inc.

     5,999       566,666  

NVIDIA Corp.

     5,421       732,540  

Onto Innovation, Inc.(a)

     2,872       264,052  

QUALCOMM, Inc.

     25,205       3,659,766  

Rambus, Inc.(a)

     3,788       202,544  

Texas Instruments, Inc.

     22,757       4,161,117  
   

 

 

  
      18,095,106  
Software — 2.4%            

Adobe, Inc.(a)

     7,093       2,944,233  

Atlassian Corp., Class A(a)

     1,335       277,186  

Autodesk, Inc.(a)

     10,181       3,014,798  

Datadog, Inc., Class A(a)

     722       85,109  

Elastic NV(a)

     25,392       2,053,451  

Fair Isaac Corp.(a)

     380       655,987  

Fortinet, Inc.(a)

     5,054       514,396  

Microsoft Corp.

     6,077       2,797,608  

Rubrik, Inc., Class A(a)

     3,920       373,772  

SailPoint, Inc.(a)

     6,892       121,437  

Salesforce, Inc.

     6,972       1,850,160  

Tenable Holdings, Inc.(a)

     1,769       56,997  

Workday, Inc., Class A(a)

     266       65,891  

Workiva, Inc., Class A(a)

     983       66,146  
   

 

 

  
       14,877,171  
Specialized REITs — 2.4%            

CubeSmart

     72,370       3,094,541  

Digital Realty Trust, Inc.

     10,714       1,837,665  

Equinix, Inc.

     8,303       7,379,873  

Extra Space Storage, Inc.

     5,018       758,471  
 

 

 

32  

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Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Value Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  
Specialized REITs (continued)            

Iron Mountain, Inc.

     16,900     $ 1,668,199  

Public Storage

     220       67,850  
   

 

 

  
      14,806,599  
Specialty Retail — 2.4%            

AutoNation, Inc.(a)

     2,820       518,457  

Bath & Body Works, Inc.

     33,951       954,702  

Five Below, Inc.(a)

     1,562       182,082  

Home Depot, Inc. (The)

     16,295       6,001,286  

Lithia Motors, Inc., Class A

     5,106       1,618,143  

O’Reilly Automotive, Inc.(a)

     670       916,225  

Penske Automotive Group, Inc.

     4,273       701,541  

TJX Cos., Inc. (The)

     29,590       3,754,971  

Urban Outfitters, Inc.(a)

     4,988       348,661  
   

 

 

  
      14,996,068  
Technology Hardware, Storage & Peripherals — 0.5%  

Apple Inc.

     14,627       2,937,833  
   

 

 

  
Textiles, Apparel & Luxury Goods — 0.4%            

Ralph Lauren Corp., Class A

     7,962       2,203,961  

Under Armour, Inc., Class C, NVS(a)

     4,747       29,906  

VF Corp.

     8,883       110,682  
   

 

 

  
      2,344,549  
Tobacco — 1.6%            

Philip Morris International, Inc.

     55,270       9,981,209  
   

 

 

  
Trading Companies & Distributors — 0.1%            

Air Lease Corp., Class A

     7,377       424,989  
Security   Shares     Value  
Wireless Telecommunication Services — 0.3%  

T-Mobile U.S., Inc.

     7,370     $ 1,785,014  
   

 

 

  

Total Long-Term Investments — 98.9%
(Cost: $558,521,336)

 

     618,315,037  
   

 

 

  

Short-Term Securities

    
Money Market Funds — 1.1%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 4.46%(c)(d)(e)

     957,462       957,844  

BlackRock Liquidity Funds, T-Fund, Institutional Shares, 4.20%(c)(d)

     5,901,960       5,901,960  
   

 

 

  

Total Short-Term Securities — 1.1%
(Cost: $6,859,804)

 

     6,859,804  
   

 

 

  

Total Investments — 100.0%
(Cost: $565,381,140)

 

     625,174,841  

Liabilities in Excess of Other Assets — (0.0)%

       (151,912 ) 
   

 

 

  

Net Assets — 100.0%

     $ 625,022,929  
   

 

 

  

 

(a) 

Non-income producing security.

(b) 

All or a portion of this security is on loan.

(c) 

Affiliate of the Fund.

(d) 

Annualized 7-day yield as of period end.

(e) 

All or a portion of this security was purchased with the cash collateral from loaned securities.

 

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended May 31, 2025 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
    Affiliated Issuer   Value at
05/31/24		     Purchases
at Cost		     Proceeds
from Sales		     Net
Realized
Gain (Loss)		     Change in
Unrealized
Appreciation
(Depreciation)		     Value at
05/31/25		     Shares
Held at
05/31/25		     Income     Capital Gain
Distributions
from
Underlying
Funds		         
 

BlackRock Cash Funds: Institutional, SL Agency Shares

   $  3,324,253     $ —       (2,366,659 )(a)    $   250       $   —     $ 957,844       957,462     $ 4,168 (b)    $   —     
 

BlackRock Liquidity Funds, T-Fund, Institutional Shares

     5,735,335       166,625 (a)      —       —               —       5,901,960       5,901,960       275,693       —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     
          $ 250       $ —     $  6,859,804       $ 279,861     $ —     
         

 

 

      

 

 

    

 

 

      

 

 

    

 

 

     

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

All or a portion represents securities lending income earned from the reinvestment of cash collateral from loaned securities, net of collateral investment fees, and other payments to and from borrowers of securities.

 

For purposes of this report, industry and sector sub-classifications may differ from those utilized by the Fund for compliance purposes.

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   33

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Value Fund

 

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

 

Description    Number of
Contracts		      Expiration
Date		      Notional
Amount (000)		      Value/
Unrealized
Appreciation
(Depreciation)		  

Long Contracts

            

S&P 500 E-Mini Index

      25        06/20/25      $ 7,395      $ 591,660  
           

 

 

  

Derivative Financial Instruments Categorized by Risk Exposure

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

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Assets — Derivative Financial Instruments

                     

Futures contracts

                     

Unrealized appreciation on futures contracts(a)

    $ —      $ —      $ 591,660      $ —      $ —      $ —      $ 591,660  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

  (a) 

Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

 

For the period ended May 31, 2025, the effect of derivative financial instruments in the Statements of Operations was as follows:

 

               
      Commodity
Contracts		      Credit
Contracts		      Equity
Contracts		      Foreign
Currency
Exchange
Contracts		      Interest
Rate
Contracts		      Other
Contracts		      Total  

Net Realized Gain (Loss) from:

                     

Futures contracts

    $ —      $ —      $ 163,175      $ —      $ —      $ —      $ 163,175  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net Change in Unrealized Appreciation (Depreciation) on:

                     

Futures contracts

    $ —      $ —      $ 408,415      $ —      $ —      $ —      $ 408,415  
  

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Average Quarterly Balances of Outstanding Derivative Financial Instruments

 

 

  

Futures contracts:

   

Average notional value of contracts — long

    $ 6,930,059  

 

  

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

 

 

34  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Schedule of Investments (continued)

May 31, 2025

   

BlackRock Advantage Large Cap Value Fund

 

Fair Value Hierarchy as of Period End

Various inputs are used in determining the fair value of financial instruments at the measurement date. For a description of the input levels and information about the Fund’s policy regarding valuation of financial instruments, refer to the Notes to Financial Statements.

The following table summarizes the Fund’s financial instruments categorized in the fair value hierarchy. The breakdown of the Fund’s financial instruments into major categories is disclosed in the Schedule of Investments above.

 

 

  
    Level 1            Level 2           Level 3           Total  

 

  

Assets

               

Investments

               

Long-Term Investments

               

Common Stocks

   $  618,315,037               $ —              $ —              $ 618,315,037  

Short-Term Securities

               

Money Market Funds

     6,859,804          —         —         6,859,804  
 

 

 

       

 

 

      

 

 

      

 

 

  
  $ 625,174,841        $    —       $ —       $  625,174,841  
 

 

 

       

 

 

      

 

 

      

 

 

  

Derivative Financial Instruments(a)

               

Assets

               

Equity Contracts

   $ 591,660        $ —       $ —       $ 591,660  
 

 

 

       

 

 

      

 

 

      

 

 

  

 

  (a) 

Derivative financial instruments are futures contracts. Futures contracts are valued at the unrealized appreciation (depreciation) on the instrument.

 

See notes to financial statements.

 

 

S C H E D U L E S  O F  I N V E S T M E N T S

   35

Statements of Assets and Liabilities

May 31, 2025

 

     BlackRock
Advantage
International
Fund		      BlackRock
Advantage
Large Cap
Growth Fund		      BlackRock
Advantage
Small Cap
Core Fund		      BlackRock
Advantage
Large Cap
Core Fund		      BlackRock
Advantage
Large Cap
Value Fund		  

ASSETS

              

Investments, at value — unaffiliated(a)(b)

   $ 4,777,201,868      $ 1,395,221,832      $ 3,918,277,745      $ 2,990,506,380      $ 618,315,037  

Investments, at value — affiliated(c)

     141,814,982        13,188,787        167,902,495        29,457,388        6,859,804  

Cash

     194,736        —        —        369,395        72,697  

Cash pledged:

              

Futures contracts

     4,691,000        1,155,000        4,210,000        2,551,000        532,006  

Foreign currency, at value(d)

     634,280        83,203        —        —        —  

Receivables:

              

Investments sold

     48,341,560        6,564,721        14,496,459        14,384,409        2,826,688  

Securities lending income — affiliated

     787        —        30,146        —        1,593  

Capital shares sold

     21,937,614        465,238        8,511,948        827,608        266,793  

Dividends — unaffiliated

     25,125,350        608,725        2,291,850        2,033,325        824,002  

Dividends — affiliated

     324,037        48,206        147,144        99,675        20,236  

From the Manager

     167,325        73,135        158,750        134,125        27,626  

Variation margin on futures contracts

     8,961        —        —        —        —  

Foreign withholding tax claims

     289,254        —        —        —        —  

Prepaid expenses

     110,525        38,223        88,620        41,819        38,909  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total assets

     5,020,842,279        1,417,447,070        4,116,115,157        3,040,405,124        629,785,391  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

LIABILITIES

              

Bank overdraft

     —        —        244,202        —        —  

Collateral on securities loaned

     25,912,628        —        126,824,535        —        957,845  

Payables:

              

Investments purchased

     103,889,276        6,165,383        15,545,525        14,433,799        2,824,509  

Administration fees

     143,414        46,829        124,007        95,461        22,188  

Capital shares redeemed

     7,592,254        856,351        3,576,342        1,720,161        472,524  

Investment advisory fees

     1,510,640        572,237        1,301,493        895,471        176,924  

Directors’ and Officer’s fees

     1,531        1,504        4,642        6,795        1,492  

Other accrued expenses

     939,354        284,617        746,597        745,656        179,997  

Other affiliate fees

     21,582        —        8,283        76,192        5,133  

Professional fees

     96,184        15,792        17,933        18,565        18,590  

Registration fees

     —        —        200,033        —        —  

Service and distribution fees

     106,356        151,025        146,423        370,615        95,409  

Variation margin on futures contracts

     —        24,668        218,242        42,361        7,851  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total liabilities

     140,213,219        8,118,406        148,958,257        18,405,076        4,762,462  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Commitments and contingent liabilities

              

NET ASSETS

   $ 4,880,629,060      $ 1,409,328,664      $ 3,967,156,900      $ 3,022,000,048      $ 625,022,929  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS CONSIST OF:

              

Paid-in capital

   $ 4,095,568,876      $ 867,144,437      $ 3,890,551,398      $ 1,968,150,913      $ 534,093,003  

Accumulated earnings

     785,060,184        542,184,227        76,605,502        1,053,849,135        90,929,926  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

NET ASSETS

   $ 4,880,629,060      $ 1,409,328,664      $ 3,967,156,900      $ 3,022,000,048      $ 625,022,929  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

(a) Investments, at cost — unaffiliated

   $ 4,092,285,006      $ 880,481,157      $ 3,792,858,361      $ 2,059,256,417      $ 558,521,336  

(b) Securities loaned, at value

   $ 245,130      $ —      $ 121,520,739      $ —      $ 912,326  

(c)  Investments, at cost — affiliated

   $ 141,814,982      $ 13,188,787      $ 167,892,974      $ 29,457,388      $ 6,859,804  

(d) Foreign currency, at cost

   $ 634,440      $ 85,016      $ —      $ —      $ —  

 

 

36  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Statements of Assets and Liabilities (continued)

May 31, 2025

 

     BlackRock
Advantage
International
Fund		      BlackRock
Advantage
Large Cap
Growth Fund		      BlackRock
Advantage
Small Cap
Core Fund		      BlackRock
Advantage
Large Cap
Core Fund		      BlackRock
Advantage
Large Cap
Value Fund		  

NET ASSET VALUE

              
Institutional                                  

Net assets

   $ 3,263,049,741      $ 769,318,544      $ 2,171,665,052      $ 1,256,680,723      $ 206,774,756  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     147,932,606        30,309,360        125,831,237        56,936,478        6,690,518  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 22.06      $ 25.38      $ 17.26      $ 22.07      $ 30.91  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        400 million        400 million  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001      $ 0.001      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Investor A                                  

Net assets

   $ 375,898,291      $ 598,516,747      $ 660,533,373      $ 1,582,287,889      $ 386,921,191  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     17,271,624        25,459,490        38,571,123        76,581,879        12,959,052  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 21.76      $ 23.51      $ 17.13      $ 20.66      $ 29.86  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        300 million        400 million  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001      $ 0.001      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Investor C                                  

Net assets

   $ 17,104,174      $ 31,033,668      $ 10,474,138      $ 44,961,442      $ 13,867,173  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     813,755        1,768,517        634,925        2,871,772        522,121  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 21.02      $ 17.55      $ 16.50      $ 15.66      $ 26.56  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        400 million        400 million  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001      $ 0.001      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Class K                                  

Net assets

   $ 1,185,947,146      $ 8,167,502      $ 1,124,484,337      $ 122,087,754      $ 12,115,969  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     53,746,215        321,705        65,091,274        5,528,952        391,959  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 22.07      $ 25.39      $ 17.28      $ 22.08      $ 30.91  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        Unlimited        2 billion        2 billion  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001      $ 0.001      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  
Class R                                  

Net assets

   $ 38,629,708      $ 2,292,203      $ N/A      $ 15,982,240      $ 5,343,840  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares outstanding

     1,778,234        91,705        N/A        873,040        190,690  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value

   $ 21.72      $ 25.00      $ N/A      $ 18.31      $ 28.02  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Shares authorized

     Unlimited        Unlimited        N/A        200 million        200 million  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Par value

   $ 0.001      $ 0.001      $ N/A      $ 0.10      $ 0.10  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

See notes to financial statements.

 

 

S T A T E M E N T S  O F  A S S E T S  A N D  L I A B I L I T I E S

   37

Statements of Operations

Year Ended May 31, 2025

 

     BlackRock
Advantage
International
Fund		     BlackRock
Advantage
Large Cap
Growth Fund		     BlackRock
Advantage
Small Cap
Core Fund		  

INVESTMENT INCOME

      

Dividends — unaffiliated

   $ 104,757,741     $ 8,734,470     $ 47,940,986  

Dividends — affiliated

     3,205,953       599,711       1,916,253  

Securities lending income — affiliated — net

     2,129       4,414       432,236  

Other income

     45,770       —       —  

Foreign taxes withheld

     (8,078,379 )      (369 )      (17,599 ) 

Foreign withholding tax claims

     1,598,812       —       —  
 

 

 

    

 

 

    

 

 

  

Total investment income

     101,532,026       9,338,226       50,271,876  
 

 

 

    

 

 

    

 

 

  

EXPENSES

      

Investment advisory

     11,669,011       7,456,125       16,647,373  

Transfer agent — class specific

     2,413,181       1,426,861       2,469,985  

Service and distribution — class specific

     1,050,255       1,797,972       1,477,172  

Administration

     1,034,571       534,453       1,454,914  

Administration — class specific

     541,125       265,047       782,516  

Custodian

     365,253       35,231       110,929  

Professional

     192,292       46,423       92,871  

Accounting services

     185,481       109,042       250,743  

Registration

     141,117       88,164       121,447  

Printing and postage

     44,336       44,150       46,261  

Directors and Officer

     23,980       15,917       35,088  

Miscellaneous

     4,666       38,271       79,054  
 

 

 

    

 

 

    

 

 

  

Total expenses excluding interest expense

     17,665,268       11,857,656       23,568,353  

Interest expense

     13,372       134       —  
 

 

 

    

 

 

    

 

 

  

Total expenses

     17,678,640       11,857,790       23,568,353  
 

 

 

    

 

 

    

 

 

  

Less:

      

Administration fees waived by the Manager — class specific

     (541,125 )      (265,047 )      (782,516 ) 

Fees waived and/or reimbursed by the Manager

     (1,326,807 )      (814,156 )      (1,224,648 ) 

Transfer agent fees waived and/or reimbursed by the Manager — class specific

     (1,333,119 )      (765,763 )      (1,101,886 ) 
 

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     14,477,589       10,012,824       20,459,303  
 

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     87,054,437       (674,598 )      29,812,573  
 

 

 

    

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

      

Net realized gain (loss) from:

      

Investments — unaffiliated

     104,320,742       196,893,782       213,559,565  

Investments — affiliated

     432       558       3,941  

Futures contracts

     4,218,085       1,885,971       (3,406,621 ) 

Foreign currency transactions

     (266,126 )      —       —  
 

 

 

    

 

 

    

 

 

  
    108,273,133       198,780,311       210,156,885  
 

 

 

    

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

      

Investments — unaffiliated

     390,635,886       21,439,492       (246,140,766 ) 

Investments — affiliated

     —       —       9,521  

Futures contracts

     (51,293 )      49,016       291,006  

Foreign currency translations

     905,745       3,694       —  
 

 

 

    

 

 

    

 

 

  
    391,490,338       21,492,202       (245,840,239 ) 
 

 

 

    

 

 

    

 

 

  

Net realized and unrealized gain (loss)

     499,763,471       220,272,513       (35,683,354 ) 
 

 

 

    

 

 

    

 

 

  

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

   $ 586,817,908     $ 219,597,915     $ (5,870,781 ) 
 

 

 

    

 

 

    

 

 

  

See notes to financial statements.

 

 

38  

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Statements of Operations (continued)

Year Ended May 31, 2025

 

     BlackRock
Advantage
Large Cap
Core Fund		     BlackRock
Advantage
Large Cap
Value Fund		  

INVESTMENT INCOME

    

Dividends — unaffiliated

   $ 37,136,310     $ 12,919,393  

Dividends — affiliated

     1,296,740       275,693  

Securities lending income — affiliated — net

     13,820       4,168  

Foreign taxes withheld

     —       2,782  
 

 

 

    

 

 

  

Total investment income

     38,446,870       13,202,036  
 

 

 

    

 

 

  

EXPENSES

    

Investment advisory

     12,845,518       3,133,340  

Service and distribution — class specific

     4,560,349       1,171,592  

Transfer agent — class specific

     2,866,587       562,828  

Administration

     1,133,326       268,283  

Administration — class specific

     597,751       127,913  

Accounting services

     200,017       71,503  

Professional

     119,447       100,014  

Registration

     103,741       87,146  

Custodian

     82,636       112,697  

Printing and postage

     43,591       25,066  

Directors and Officer

     31,295       11,621  

Miscellaneous

     32,912       25,659  
 

 

 

    

 

 

  

Total expenses excluding interest expense

     22,617,170       5,697,662  

Interest expense

     125       6  
 

 

 

    

 

 

  

Total expenses

     22,617,295       5,697,668  
 

 

 

    

 

 

  

Less:

    

Administration fees waived

     —       (34 ) 

Administration fees waived by the Manager — class specific

     (597,751 )      (127,913 ) 

Fees waived and/or reimbursed by the Manager

     (1,742,614 )      (701,717 ) 

Transfer agent fees waived and/or reimbursed — class specific

     (1,402,364 )      (247,287 ) 
 

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     18,874,566       4,620,717  
 

 

 

    

 

 

  

Net investment income

     19,572,304       8,581,319  
 

 

 

    

 

 

  

REALIZED AND UNREALIZED GAIN (LOSS)

    

Net realized gain (loss) from:

    

Investments — unaffiliated

     316,860,653       68,435,906  

Investments — affiliated

     (5,350 )      250  

Futures contracts

     214,457       163,175  
 

 

 

    

 

 

  
    317,069,760       68,599,331  
 

 

 

    

 

 

  

Net change in unrealized appreciation (depreciation) on:

    

Investments — unaffiliated

     8,464,880       (24,480,500 ) 

Investments — affiliated

     180       —  

Futures contracts

     1,423,821       408,415  
 

 

 

    

 

 

  
    9,888,881       (24,072,085 ) 
 

 

 

    

 

 

  

Net realized and unrealized gain

     326,958,641       44,527,246  
 

 

 

    

 

 

  

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS

   $ 346,530,945     $ 53,108,565  
 

 

 

    

 

 

  

See notes to financial statements.

 

 

S T A T E M E N T S  O F  O P E R A T I O N S

   39

 

Statements of Changes in Net Assets

 

    BlackRock Advantage
International Fund		           BlackRock Advantage Large Cap
Growth Fund		  
     Year Ended
05/31/25		     Year Ended
05/31/24		            Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

 

        

OPERATIONS

          

Net investment income (loss)

   $ 87,054,437     $ 38,108,647       $ (674,598 )    $ 949,147  

Net realized gain

     108,273,133       65,371,744         198,780,311       132,674,713  

Net change in unrealized appreciation (depreciation)

     391,490,338       174,630,396         21,492,202       180,428,268  
 

 

 

    

 

 

      

 

 

    

 

 

  

Net increase in net assets resulting from operations

     586,817,908       278,110,787         219,597,915       314,052,128  
 

 

 

    

 

 

      

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Institutional

     (49,388,009 )      (24,298,025 )        (132,790,887 )      (5,262,541 ) 

Investor A

     (8,409,706 )      (6,057,012 )        (120,993,971 )      (3,948,921 ) 

Investor C

     (372,491 )      (149,273 )        (8,241,941 )      (262,948 ) 

Class K

     (8,955,985 )      (6,005,547 )        (1,426,523 )      (47,549 ) 

Class R

     (1,035,538 )      (612,167 )        (312,822 )      (4,973 ) 
 

 

 

    

 

 

      

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (68,161,729 )      (37,122,024 )        (263,766,144 )      (9,526,932 ) 
 

 

 

    

 

 

      

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

     2,614,586,897       288,550,165         226,835,987       (30,979,579 ) 
 

 

 

    

 

 

      

 

 

    

 

 

  

NET ASSETS

          

Total increase in net assets

     3,133,243,076       529,538,928         182,667,758       273,545,617  

Beginning of year

     1,747,385,984       1,217,847,056         1,226,660,906       953,115,289  
 

 

 

    

 

 

      

 

 

    

 

 

  

End of year

   $ 4,880,629,060     $ 1,747,385,984       $ 1,409,328,664     $ 1,226,660,906  
 

 

 

    

 

 

      

 

 

    

 

 

  

 

(a) 

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

 

See notes to financial statements.

 

 

40  

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Statements of Changes in Net Assets (continued)

 

    BlackRock Advantage Small Cap
Core Fund		           BlackRock Advantage Large Cap
Core Fund		  
     Year Ended
05/31/25		     Year Ended
05/31/24		            Year Ended
05/31/25		     Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

 

        

OPERATIONS

          

Net investment income

   $ 29,812,573     $ 29,437,447       $ 19,572,304     $ 23,908,759  

Net realized gain

     210,156,885       121,265,322         317,069,760       328,751,562  

Net change in unrealized appreciation (depreciation)

     (245,840,239 )      624,106,586         9,888,881       410,087,805  
 

 

 

    

 

 

      

 

 

    

 

 

  

Net increase (decrease) in net assets resulting from operations

     (5,870,781 )      774,809,355         346,530,945       762,748,126  
 

 

 

    

 

 

      

 

 

    

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

          

Institutional

     (17,000,404 )      (22,210,384 )        (167,464,480 )      (14,370,753 ) 

Investor A

     (3,015,910 )      (2,752,160 )        (224,692,388 )      (11,658,748 ) 

Investor C

     (2,514 )      (22,398 )        (8,195,750 )      (186,649 ) 

Class K

     (9,840,648 )      (10,886,458 )        (6,036,630 )      (323,379 ) 

Class R

     —       —         (2,468,740 )      (100,028 ) 
 

 

 

    

 

 

      

 

 

    

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (29,859,476 )      (35,871,400 )        (408,857,988 )      (26,639,557 ) 
 

 

 

    

 

 

      

 

 

    

 

 

  

CAPITAL SHARE TRANSACTIONS

          

Net increase (decrease) in net assets derived from capital share transactions

     488,089,617       (666,316,198 )        237,104,096       (714,144,215 ) 
 

 

 

    

 

 

      

 

 

    

 

 

  

NET ASSETS

          

Total increase in net assets

     452,359,360       72,621,757         174,777,053       21,964,354  

Beginning of year

     3,514,797,540       3,442,175,783         2,847,222,995       2,825,258,641  
 

 

 

    

 

 

      

 

 

    

 

 

  

End of year

   $ 3,967,156,900     $ 3,514,797,540       $ 3,022,000,048     $ 2,847,222,995  
 

 

 

    

 

 

      

 

 

    

 

 

  

 

(a) 

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

 

See notes to financial statements.

 

 

S T A T E M E N T S  O F  C H A N G E S  I N  N E T  A S S E T S

   41

 

Statements of Changes in Net Assets (continued)

 

    BlackRock Advantage Large Cap
Value Fund		  
     Year Ended
05/31/25		             Year Ended
05/31/24		  

INCREASE (DECREASE) IN NET ASSETS

 

     

OPERATIONS

       

Net investment income

   $ 8,581,319        $ 9,006,911  

Net realized gain

     68,599,331          62,624,250  

Net change in unrealized appreciation (depreciation)

     (24,072,085 )         58,748,318  
 

 

 

       

 

 

  

Net increase in net assets resulting from operations

     53,108,565          130,379,479  
 

 

 

       

 

 

  

DISTRIBUTIONS TO SHAREHOLDERS(a)

       

Institutional

     (27,004,307 )         (5,038,560 ) 

Investor A

     (53,574,227 )         (10,006,852 ) 

Investor C

     (2,016,357 )         (338,418 ) 

Class K

     (1,566,110 )         (421,604 ) 

Class R

     (1,067,189 )         (185,940 ) 
 

 

 

       

 

 

  

Decrease in net assets resulting from distributions to shareholders

     (85,228,190 )         (15,991,374 ) 
 

 

 

       

 

 

  

CAPITAL SHARE TRANSACTIONS

       

Net increase (decrease) in net assets derived from capital share transactions

     35,641,259          (35,263,026 ) 
 

 

 

       

 

 

  

NET ASSETS

       

Total increase in net assets

     3,521,634          79,125,079  

Beginning of year

     621,501,295          542,376,216  
 

 

 

       

 

 

  

End of year

   $ 625,022,929        $ 621,501,295  
 

 

 

       

 

 

  

 

(a) 

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

 

See notes to financial statements.

 

 

42  

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Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Advantage International Fund  
    Institutional  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 19.59      $ 16.73      $ 16.48      $ 19.89     $ 14.52  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

     0.64        0.49        0.48        0.46       0.38  

Net realized and unrealized gain (loss)

     2.49        2.86        0.29        (2.28 )      5.30  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.13        3.35        0.77        (1.82 )      5.68  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

             

From net investment income

     (0.53 )       (0.49 )       (0.52 )       (0.62 )      (0.31 ) 

From net realized gain

     (0.13 )       —        —        (0.97 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (0.66 )       (0.49 )       (0.52 )       (1.59 )      (0.31 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 22.06      $ 19.59      $ 16.73      $ 16.48     $ 19.89  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

     16.48 %       20.40 %       5.10 %       (9.93 )%      39.57 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     0.63 %       0.70 %       0.68 %       0.73 %      0.78 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.50 %       0.50 %       0.50 %       0.50 %      0.50 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     3.19 %       2.73 %       3.08 %       2.51 %      2.21 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  3,263,050      $  1,183,511      $  771,698      $  710,116     $  616,649  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     113 %       128 %       128 %       132 %      247 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   43

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage International Fund (continued)  
    Investor A  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 19.34      $ 16.52      $ 16.28      $ 19.65      $ 14.35  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income(a)

     0.49        0.42        0.44        0.35        0.33  

Net realized and unrealized gain (loss)

     2.54        2.85        0.28        (2.19 )       5.24  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     3.03        3.27        0.72        (1.84 )       5.57  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Distributions(b)

              

From net investment income

     (0.48 )       (0.45 )       (0.48 )       (0.56 )       (0.27 ) 

From net realized gain

     (0.13 )       —        —        (0.97 )       —  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total distributions

     (0.61 )       (0.45 )       (0.48 )       (1.53 )       (0.27 ) 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 21.76      $ 19.34      $ 16.52      $ 16.28      $ 19.65  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total Return(c)

              

Based on net asset value

     16.14 %       20.11 %       4.82 %       (10.13 )%       39.21 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(d)

              

Total expenses

     0.89 %       0.92 %       1.00 %       1.02 %       1.05 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.76 %       0.75 %       0.75 %       0.75 %       0.75 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed and excluding interest expense and professional fees for foreign withholding tax claims

     0.75 %       0.75 %       0.75 %       0.75 %       0.75 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Net investment income

     2.50 %       2.38 %       2.82 %       1.93 %       1.95 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Supplemental Data

              

Net assets, end of year (000)

   $  375,898      $  264,866      $  230,879      $  240,255      $  456,083  
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     113 %       128 %       128 %       132 %       247 % 
 

 

 

     

 

 

     

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c)

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

(d)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

44  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage International Fund (continued)  
    Investor C  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 18.70      $ 16.03      $ 15.81      $ 19.12     $ 13.95  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

     0.31        0.36        0.32        0.22       0.16  

Net realized and unrealized gain (loss)

     2.49        2.67        0.27        (2.15 )      5.14  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.80        3.03        0.59        (1.93 )      5.30  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

             

From net investment income

     (0.35 )       (0.36 )       (0.37 )       (0.41 )      (0.13 ) 

From net realized gain

     (0.13 )       —        —        (0.97 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (0.48 )       (0.36 )       (0.37 )       (1.38 )      (0.13 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 21.02      $ 18.70      $ 16.03      $ 15.81     $ 19.12  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

     15.32 %       19.21 %       4.04 %       (10.83 )%      38.21 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     1.86 %       1.73 %       1.78 %       1.83 %      1.88 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.50 %       1.50 %       1.50 %       1.50 %      1.50 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     1.62 %       2.09 %       2.10 %       1.27 %      0.98 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  17,104      $  14,765      $  2,598      $  2,356     $  3,664  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     113 %       128 %       128 %       132 %      247 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b)

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   45

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage International Fund (continued)  
    Class K  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 19.59      $ 16.73      $ 16.48      $ 19.89     $ 14.52  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

     0.75        0.48        0.52        0.46       0.46  

Net realized and unrealized gain (loss)

     2.40        2.88        0.26        (2.28 )      5.23  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     3.15        3.36        0.78        (1.82 )      5.69  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

             

From net investment income

     (0.54 )       (0.50 )       (0.53 )       (0.62 )      (0.32 ) 

From net realized gain

     (0.13 )       —        —        (0.97 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (0.67 )       (0.50 )       (0.53 )       (1.59 )      (0.32 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 22.07      $ 19.59      $ 16.73      $ 16.48     $ 19.89  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

     16.58 %       20.45 %       5.16 %       (9.89 )%      39.64 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     0.52 %       0.56 %       0.57 %       0.61 %      0.63 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.45 %       0.45 %       0.45 %       0.45 %      0.45 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     3.74 %       2.71 %       3.28 %       2.55 %      2.65 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  1,185,947      $  249,178      $  193,748      $  103,329     $  103,454  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     113 %       128 %       128 %       132 %      247 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

46  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage International Fund (continued)  
    Class R  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 19.30      $ 16.53      $ 16.29      $ 19.68     $ 14.36  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income(a)

     0.41        0.40        0.45        0.33       0.28  

Net realized and unrealized gain (loss)

     2.57        2.82        0.23        (2.23 )      5.26  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.98        3.22        0.68        (1.90 )      5.54  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Distributions(b)

             

From net investment income

     (0.43 )       (0.45 )       (0.44 )       (0.52 )      (0.22 ) 

From net realized gain

     (0.13 )       —        —        (0.97 )      —  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total distributions

     (0.56 )       (0.45 )       (0.44 )       (1.49 )      (0.22 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 21.72      $ 19.30      $ 16.53      $ 16.29     $ 19.68  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total Return(c)

             

Based on net asset value

     15.90 %       19.81 %       4.54 %       (10.42 )%      38.91 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     1.36 %       1.32 %       1.33 %       1.35 %      1.36 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.00 %       1.00 %       1.00 %       1.00 %      1.00 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Net investment income

     2.09 %       2.26 %       2.75 %       1.81 %      1.67 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  38,630      $  35,066      $  18,925      $  2,753     $  3,416  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     113 %       128 %       128 %       132 %      247 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   47

Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Growth Fund  
    Institutional  
     Year Ended
05/31/25		      Year Ended
05/31/24		     Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 26.17      $ 19.76     $ 18.77      $ 23.33     $ 18.23  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net investment income(a)

     0.02        0.05       0.09        0.03       0.04  

Net realized and unrealized gain (loss)

     4.52        6.58       0.96        (1.25 )      6.59  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     4.54        6.63       1.05        (1.22 )      6.63  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (0.01 )       (0.06 )      (0.06 )       —       (0.07 ) 

From net realized gain

     (5.32 )       (0.16 )      —        (3.34 )      (1.46 ) 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total distributions

     (5.33 )       (0.22 )      (0.06 )       (3.34 )      (1.53 ) 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 25.38      $ 26.17     $ 19.76      $ 18.77     $ 23.33  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     17.86 %       33.74 %(d)      5.62 %       (7.80 )%      37.54 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.76 %       0.80 %      0.75 %       0.75 %      0.83 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.62 %       0.62 %      0.61 %       0.61 %      0.62 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net investment income

     0.08 %       0.22 %      0.50 %       0.15 %      0.21 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of year (000)

   $  769,319      $  639,878     $  499,742      $  432,076     $  125,061  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     149 %       128 %      130 %       130 %      134 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

48  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Growth Fund (continued)  
    Investor A  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 24.58     $ 18.57     $ 17.67      $ 22.13     $ 17.35  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net investment income (loss)(a)

     (0.04 )      (0.01 )      0.04        (0.03 )      (0.01 ) 

Net realized and unrealized gain (loss)

     4.24       6.19       0.89        (1.16 )      6.27  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     4.20       6.18       0.93        (1.19 )      6.26  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Distributions(b)

           

From net investment income

     —       (0.01 )      (0.03 )       —       (0.02 ) 

From net realized gain

     (5.27 )      (0.16 )      —        (3.27 )      (1.46 ) 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total distributions

     (5.27 )      (0.17 )      (0.03 )       (3.27 )      (1.48 ) 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 23.51     $ 24.58     $ 18.57      $ 17.67     $ 22.13  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total Return(c)

           

Based on net asset value

     17.58 %      33.45 %(d)      5.28 %       (8.05 )%      37.28 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

           

Total expenses

     1.00 %      1.01 %      1.06 %       1.07 %      1.08 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.87 %      0.87 %      0.87 %       0.87 %      0.87 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Net investment income (loss)

     (0.17 )%      (0.03 )%      0.24 %       (0.16 )%      (0.04 )% 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Supplemental Data

           

Net assets, end of year (000)

   $  598,517     $  548,827     $  441,983      $  452,791     $  909,344  
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     149 %      128 %      130 %       130 %      134 % 
 

 

 

    

 

 

    

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d)

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(e)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   49

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Growth Fund (continued)  
    Investor C  
     Year Ended
05/31/25		      Year Ended
05/31/24		     Year Ended
05/31/23		      Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 19.52      $ 14.88     $ 14.24      $ 18.42      $ 14.67  
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net investment loss(a)

     (0.17 )       (0.14 )      (0.07 )       (0.16 )       (0.13 ) 

Net realized and unrealized gain (loss)

     3.34        4.94       0.71        (0.87 )       5.27  
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net increase (decrease) from investment operations

     3.17        4.80       0.64        (1.03 )       5.14  
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Distributions from net realized gain(b)

     (5.14 )       (0.16 )      —        (3.15 )       (1.39 ) 
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net asset value, end of year

   $ 17.55      $ 19.52     $ 14.88      $ 14.24      $ 18.42  
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     16.71 %       32.46 %(d)      4.50 %       (8.74 )%       36.25 % 
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Ratios to Average Net Assets(e)

             

Total expenses

     1.92 %       1.83 %      1.87 %       1.83 %       1.84 % 
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     1.62 %       1.62 %      1.62 %       1.62 %       1.62 % 
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Net investment loss

     (0.91 )%       (0.79 )%      (0.51 )%       (0.89 )%       (0.78 )% 
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  31,034      $  30,540     $  8,372      $  10,162      $  12,989  
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

Portfolio turnover rate

     149 %       128 %      130 %       130 %       134 % 
 

 

 

     

 

 

    

 

 

     

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

50  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Growth Fund (continued)  
    Class K  
     Year Ended
05/31/25		      Year Ended
05/31/24		     Year Ended
05/31/23		      Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 26.17      $ 19.76     $ 18.77      $ 23.33     $ 18.23  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net investment income(a)

     0.03        0.06       0.10        0.04       0.05  

Net realized and unrealized gain (loss)

     4.54        6.58       0.95        (1.25 )      6.59  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net increase (decrease) from investment operations

     4.57        6.64       1.05        (1.21 )      6.64  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (0.02 )       (0.07 )      (0.06 )       —       (0.08 ) 

From net realized gain

     (5.33 )       (0.16 )      —        (3.35 )      (1.46 ) 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total distributions

     (5.35 )       (0.23 )      (0.06 )       (3.35 )      (1.54 ) 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net asset value, end of year

   $ 25.39      $ 26.17     $ 19.76      $ 18.77     $ 23.33  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     17.96 %       33.81 %(d)      5.63 %       (7.76 )%      37.60 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Ratios to Average Net Assets(e)

            

Total expenses

     0.66 %       0.67 %      0.69 %       0.69 %      0.69 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.57 %       0.57 %      0.57 %       0.57 %      0.57 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Net investment income

     0.13 %       0.27 %      0.53 %       0.18 %      0.25 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of year (000)

   $  8,168      $  5,855     $  2,489      $  2,177     $  1,152  
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

Portfolio turnover rate

     149 %       128 %      130 %       130 %      134 % 
 

 

 

     

 

 

    

 

 

     

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   51

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Growth Fund (continued)  
    Class R  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 25.86     $ 19.57     $ 18.64     $ 23.17     $ 18.10  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss(a)

     (0.10 )      (0.06 )      (0.00 )(b)      (0.09 )      (0.06 ) 

Net realized and unrealized gain (loss)

     4.46       6.51       0.94       (1.25 )      6.55  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     4.36       6.45       0.94       (1.34 )      6.49  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(c)

          

From net investment income

     —       —       (0.01 )      —       —  

From net realized gain

     (5.22 )      (0.16 )      —       (3.19 )      (1.42 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

     (5.22 )      (0.16 )      (0.01 )      (3.19 )      (1.42 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 25.00     $ 25.86     $  19.57     $  18.64     $  23.17  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

          

Based on net asset value

     17.29 %      33.12 %(e)      5.03 %      (8.28 )%      36.93 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

          

Total expenses

     1.37 %      1.40 %      1.42 %      1.50 %      1.36 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.12 %      1.12 %      1.12 %      1.12 %      1.12 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.41 )%      (0.28 )%      (0.03 )%      (0.39 )%      (0.30 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $  2,292     $  1,561     $ 530     $ 349     $ 577  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     149 %      128 %      130 %      130 %      134 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

Amount is less than $0.005 per share.

(c) 

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

(d) 

Where applicable, assumes the reinvestment of distributions.

(e) 

Includes a payment received from an affiliate, which had no impact on the Fund’s total return.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

52  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Advantage Small Cap Core Fund  
    Institutional  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 17.35      $ 14.06      $ 15.35     $ 20.72     $ 13.09  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.14        0.14        0.14       0.13       0.12  

Net realized and unrealized gain (loss)

     (0.09 )       3.31        (1.02 )      (3.28 )      7.97  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.05        3.45        (0.88 )      (3.15 )      8.09  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (0.14 )       (0.16 )       (0.12 )      (0.14 )      (0.10 ) 

From net realized gain

     —        —        (0.29 )      (2.08 )      (0.36 ) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (0.14 )       (0.16 )       (0.41 )      (2.22 )      (0.46 ) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 17.26      $ 17.35      $ 14.06     $ 15.35     $ 20.72  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     0.21 %       24.68 %       (5.75 )%      (16.89 )%      62.61 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

            

Total expenses

     0.57 %       0.57 %       0.59 %      0.59 %      0.60 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.50 %       0.50 %       0.50 %      0.50 %      0.50 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.78 %       0.86 %       0.93 %      0.69 %      0.65 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of year (000)

   $  2,171,665      $  2,020,581      $  2,152,757     $  2,501,959     $  2,802,145  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     88 %       75 %       93 %      81 %      63 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   53

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Small Cap Core Fund (continued)  
    Investor A  
     Year Ended
05/31/25		     Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 17.23     $ 13.96      $ 15.24     $ 20.58     $ 13.02  
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.09       0.09        0.10       0.08       0.08  

Net realized and unrealized gain (loss)

     (0.09 )      3.30        (1.01 )      (3.25 )      7.91  
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.00       3.39        (0.91 )      (3.17 )      7.99  
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

           

From net investment income

     (0.10 )      (0.12 )       (0.08 )      (0.09 )      (0.07 ) 

From net realized gain

     —       —        (0.29 )      (2.08 )      (0.36 ) 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (0.10 )      (0.12 )       (0.37 )      (2.17 )      (0.43 ) 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 17.13     $ 17.23      $ 13.96     $ 15.24     $ 20.58  
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

           

Based on net asset value

     (0.06 )%      24.42 %       (5.98 )%      (17.08 )%      62.05 % 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

           

Total expenses

     0.91 %      0.93 %       0.93 %      0.92 %      0.95 % 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.75 %      0.75 %       0.75 %      0.75 %      0.75 % 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.52 %      0.59 %       0.67 %      0.44 %      0.45 % 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

           

Net assets, end of year (000)

   $  660,533     $  382,878      $  315,694     $  358,594     $  530,664  
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     88 %      75 %       93 %      81 %      63 % 
 

 

 

    

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

54  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Small Cap Core Fund (continued)  
    Investor C  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 16.64     $ 13.50     $ 14.80     $ 20.08     $ 12.74  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)(a)

     (0.04 )      (0.03 )      (0.01 )      (0.05 )      (0.05 ) 

Net realized and unrealized gain (loss)

     (0.10 )      3.20       (0.98 )      (3.18 )      7.74  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     (0.14 )      3.17       (0.99 )      (3.23 )      7.69  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

          

From net investment income

     —       (0.03 )      (0.02 )      —       —  

From net realized gain

     —       —       (0.29 )      (2.05 )      (0.35 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

     —       (0.03 )      (0.31 )      (2.05 )      (0.35 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 16.50     $ 16.64     $ 13.50     $ 14.80     $ 20.08  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(c)

          

Based on net asset value

     (0.82 )%      23.55 %      (6.70 )%      (17.74 )%      60.90 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

          

Total expenses

     1.65 %      1.71 %      1.69 %      1.64 %      1.70 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.50 %      1.50 %      1.50 %      1.50 %      1.50 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment loss

     (0.21 )%      (0.18 )%      (0.07 )%      (0.30 )%      (0.32 )% 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

          

Net assets, end of year (000)

   $  10,474     $  11,679     $  9,276     $  10,969     $  12,880  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     88 %      75 %      93 %      81 %      63 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   55

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Small Cap Core Fund (continued)  
    Class K  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 17.37      $ 14.07      $ 15.36     $ 20.73     $ 13.10  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.15        0.14        0.14       0.13       0.13  

Net realized and unrealized gain (loss)

     (0.09 )       3.33        (1.02 )      (3.27 )      7.97  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     0.06        3.47        (0.88 )      (3.14 )      8.10  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (0.15 )       (0.17 )       (0.12 )      (0.15 )      (0.11 ) 

From net realized gain

     —        —        (0.29 )      (2.08 )      (0.36 ) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (0.15 )       (0.17 )       (0.41 )      (2.23 )      (0.47 ) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 17.28      $ 17.37      $ 14.07     $ 15.36     $ 20.73  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     0.25 %       24.80 %       (5.70 )%      (16.84 )%      62.63 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

            

Total expenses

     0.51 %       0.51 %       0.51 %      0.51 %      0.52 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.45 %       0.45 %       0.45 %      0.45 %      0.45 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.84 %       0.89 %       0.97 %      0.73 %      0.71 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of year (000)

   $  1,124,484      $  1,099,659      $  964,449     $  967,682     $  920,752  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     88 %       75 %       93 %      81 %      63 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

See notes to financial statements.

 

 

56  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Core Fund  
    Institutional  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Period from
10/01/21
to 05/31/22		     Year Ended
09/30/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 22.42      $ 17.36      $ 18.39      $ 23.32     $ 18.78     $ 16.87  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.18        0.19        0.20        0.13       0.19       0.22  

Net realized and unrealized gain (loss)

     2.57        5.06        (0.18 )       (0.87 )      5.31       2.41  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.75        5.25        0.02        (0.74 )      5.50       2.63  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

               

From net investment income

     (0.18 )       (0.19 )       (0.20 )       (0.19 )      (0.22 )      (0.29 ) 

From net realized gain

     (2.92 )       —        (0.85 )       (4.00 )      (0.74 )      (0.43 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (3.10 )       (0.19 )       (1.05 )       (4.19 )      (0.96 )      (0.72 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 22.07      $ 22.42      $ 17.36      $ 18.39     $ 23.32     $ 18.78  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

               

Based on net asset value

     12.62 %       30.47 %       0.63 %       (5.20 )%(d)      30.31 %      15.96 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

     0.60 %       0.63 %       0.63 %       0.61 %(f)(g)      0.68 %(h)      0.84 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.48 %       0.48 %       0.48 %       0.48 %(f)(g)      0.48 %(h)      0.48 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.81 %       0.95 %       1.17 %       0.92 %(f)(g)      0.87 %(h)      1.29 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

               

Net assets, end of period (000)

   $  1,256,681      $  1,193,777      $  1,479,014      $  1,547,621     $  1,721,850     $  1,399,612  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     117 %       116 %       105 %       73 %(j)      111 %(j)      99 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

From October 1, 2021 through April 25, 2022, the Fund invested in the Master Advantage Large Cap Core Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(h) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of less than 0.01%.

(i) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(j) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to April 25, 2022.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   57

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Core Fund (continued)  
    Investor A  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Period from
10/01/21
to 05/31/22		     Year Ended
09/30/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 21.17      $ 16.40      $ 17.44      $ 22.30     $ 18.00     $ 16.20  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.12        0.13        0.15        0.09       0.13       0.17  

Net realized and unrealized gain (loss)

     2.42        4.79        (0.19 )       (0.82 )      5.08       2.31  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.54        4.92        (0.04 )       (0.73 )      5.21       2.48  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

               

From net investment income

     (0.13 )       (0.15 )       (0.15 )       (0.13 )      (0.17 )      (0.25 ) 

From net realized gain

     (2.92 )       —        (0.85 )       (4.00 )      (0.74 )      (0.43 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (3.05 )       (0.15 )       (1.00 )       (4.13 )      (0.91 )      (0.68 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 20.66      $ 21.17      $ 16.40      $ 17.44     $ 22.30     $ 18.00  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

               

Based on net asset value

     12.34 %       30.18 %       0.34 %       (5.37 )%(d)      30.01 %      15.66 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

     0.86 %       0.88 %       0.90 %       0.86 %(f)(g)      0.93 %(h)      1.09 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.73 %       0.73 %       0.73 %       0.73 %(f)(g)      0.73 %(h)      0.73 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.56 %       0.70 %       0.92 %       0.67 %(f)(g)      0.62 %(h)      1.04 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

               

Net assets, end of period (000)

   $  1,582,288      $  1,547,821      $  1,271,384      $  1,382,899     $  1,519,185     $  1,325,195  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     117 %       116 %       105 %       73 %(j)      111 %(j)      99 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c)

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

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

From October 1, 2021 through April 25, 2022, the Fund invested in the Master Advantage Large Cap Core Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(h) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of less than 0.01%.

(i) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(j) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to April 25, 2022.

See notes to financial statements.

 

 

58  

2 0 2 5  B L A C K R O C K  A N N U A L  F I N A N C I A L  S T A T E M E N T S  A N D  A D D I T I O N A L  I N F O R M A T I O N

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Core Fund (continued)  
    Investor C  
     Year Ended
05/31/25		     Year Ended
05/31/24		     Year Ended
05/31/23		     Period from
10/01/21
to 05/31/22		     Year Ended
09/30/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 16.73     $ 13.01     $ 14.06     $ 18.68     $ 15.14     $ 13.72  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)(a)

     (0.03 )      (0.01 )      0.02       (0.01 )      (0.02 )      0.04  

Net realized and unrealized gain (loss)

     1.91       3.80       (0.16 )      (0.61 )      4.28       1.95  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     1.88       3.79       (0.14 )      (0.62 )      4.26       1.99  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (0.03 )      (0.07 )      (0.06 )      (0.00 )(c)      —       (0.14 ) 

From net realized gain

     (2.92 )      —       (0.85 )      (4.00 )      (0.72 )      (0.43 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total distributions

     (2.95 )      (0.07 )      (0.91 )      (4.00 )      (0.72 )      (0.57 ) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 15.66     $ 16.73     $ 13.01     $ 14.06     $ 18.68     $ 15.14  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total Return(d)

            

Based on net asset value

     11.52 %      29.21 %      (0.42 )%      (5.81 )%(e)      29.03 %      14.80 % 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(f)

            

Total expenses

     1.68 %      1.69 %      1.72 %      1.69 %(g)(h)      1.69 %(i)      1.87 %(j) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.48 %      1.48 %      1.48 %      1.48 %(g)(h)      1.48 %(i)      1.48 %(j) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net investment income (loss)

     (0.19 )%      (0.05 )%      0.17 %      (0.08 )%(g)(h)      (0.13 )%(i)      0.32 %(j) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of period (000)

   $  44,961     $  44,928     $  31,813     $  38,506     $  42,561     $  31,921  
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     117 %      116 %      105 %      73 %(k)      111 %(k)      99 %(k) 
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Amount is greater than $(0.005) per share.

(d) 

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

(e) 

Not annualized.

(f) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(g)

Annualized.

(h) 

From October 1, 2021 through April 25, 2022, the Fund invested in the Master Advantage Large Cap Core Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(i) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of less than 0.01%.

(j) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(k) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to April 25, 2022.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   59

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Core Fund (continued)  
    Class K  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Period from
10/01/21
to 05/31/22		     Year Ended
09/30/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 22.42      $ 17.36      $ 18.40      $ 23.34     $ 18.79     $ 16.88  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.19        0.20        0.21        0.13       0.20       0.22  

Net realized and unrealized gain (loss)

     2.59        5.06        (0.19 )       (0.87 )      5.32       2.42  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.78        5.26        0.02        (0.74 )      5.52       2.64  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

               

From net investment income

     (0.20 )       (0.20 )       (0.21 )       (0.20 )      (0.23 )      (0.30 ) 

From net realized gain

     (2.92 )       —        (0.85 )       (4.00 )      (0.74 )      (0.43 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (3.12 )       (0.20 )       (1.06 )       (4.20 )      (0.97 )      (0.73 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 22.08      $ 22.42      $ 17.36      $ 18.40     $ 23.34     $ 18.79  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

               

Based on net asset value

     12.73 %       30.53 %       0.63 %       (5.18 )%(d)      30.42 %      16.01 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

     0.51 %       0.52 %       0.54 %       0.51 %(f)(g)      0.55 %(h)      0.70 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.43 %       0.43 %       0.43 %       0.43 %(f)(g)      0.43 %(h)      0.43 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.85 %       1.01 %       1.22 %       0.98 %(f)(g)      0.91 %(h)      1.30 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

               

Net assets, end of period (000)

   $  122,088      $  41,460      $  31,568      $  61,965     $  56,736     $  34,078  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     117 %       116 %       105 %       73 %(j)      111 %(j)      99 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

From October 1, 2021 through April 25, 2022, the Fund invested in the Master Advantage Large Cap Core Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(h) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of less than 0.01%.

(i)

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(j) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to April 25, 2022.

See notes to financial statements.

 

 

60  

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Core Fund (continued)  
    Class R  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		      Period from
10/01/21
to 05/31/22		     Year Ended
09/30/21		     Year Ended
09/30/20		  
             

Net asset value, beginning of period

   $ 19.07      $ 14.80      $ 15.84      $ 20.60     $ 16.66     $ 15.03  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.06        0.07        0.10        0.05       0.07       0.13  

Net realized and unrealized gain (loss)

     2.18        4.32        (0.17 )       (0.72 )      4.70       2.13  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.24        4.39        (0.07 )       (0.67 )      4.77       2.26  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

               

From net investment income

     (0.08 )       (0.12 )       (0.12 )       (0.09 )      (0.09 )      (0.20 ) 

From net realized gain

     (2.92 )       —        (0.85 )       (4.00 )      (0.74 )      (0.43 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (3.00 )       (0.12 )       (0.97 )       (4.09 )      (0.83 )      (0.63 ) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of period

   $ 18.31      $ 19.07      $ 14.80      $ 15.84     $ 20.60     $ 16.66  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

               

Based on net asset value

     12.08 %       29.82 %       0.14 %       (5.55 )%(d)      29.67 %      15.38 % 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(e)

               

Total expenses

     1.21 %       1.22 %       1.24 %       1.23 %(f)(g)      1.26 %(h)      1.37 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     0.98 %       0.98 %       0.98 %       0.98 %(f)(g)      0.98 %(h)      0.98 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.31 %       0.44 %       0.68 %       0.42 %(f)(g)      0.37 %(h)      0.83 %(i) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

               

Net assets, end of period (000)

   $  15,982      $  19,237      $  11,479      $  13,967     $  14,399     $  12,416  
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     117 %       116 %       105 %       73 %(j)      111 %(j)      99 %(j) 
 

 

 

     

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Not annualized.

(e) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(f) 

Annualized.

(g) 

From October 1, 2021 through April 25, 2022, the Fund invested in the Master Advantage Large Cap Core Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(h) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of less than 0.01%.

(i) 

Includes the Fund’s share of the Master Portfolio’s allocated expenses and/or net investment income. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.01%.

(j) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to April 25, 2022.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   61

Financial Highlights

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Value Fund  
    Institutional  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 32.45      $ 26.63      $ 29.79     $ 35.07      $ 24.74  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

     0.48        0.51        0.47       0.45        0.46  

Net realized and unrealized gain (loss)

     2.31        6.16        (2.02 )      (0.21 )       10.36  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net increase (decrease) from investment operations

     2.79        6.67        (1.55 )      0.24        10.82  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Distributions(b)

             

From net investment income

     (0.49 )       (0.50 )       (0.47 )      (0.47 )       (0.49 ) 

From net realized gain

     (3.84 )       (0.35 )       (1.14 )      (5.05 )       —  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

     (4.33 )       (0.85 )       (1.61 )      (5.52 )       (0.49 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 30.91      $ 32.45      $ 26.63     $ 29.79      $ 35.07  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     8.89 %       25.48 %       (4.97 )%      0.63 %       44.37 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     0.71 %       0.71 %       0.70 %      0.70 %       0.84 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.54 %       0.54 %       0.54 %      0.54 %       0.54 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     1.52 %       1.73 %       1.72 %      1.41 %       1.58 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  206,775      $  193,379      $  164,434     $  186,903      $  194,452  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     120 %       118 %       116 %      136 %       126 %(f) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d)

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

From June 1, 2020 through February 28, 2021, the Fund invested in the Master Advantage Large Cap Value Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.03%.

(f) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to March 1, 2021.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Value Fund (continued)  
    Investor A  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 31.48      $ 25.86      $ 28.98     $ 34.26      $ 24.18  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

     0.39        0.43        0.39       0.36        0.38  

Net realized and unrealized gain (loss)

     2.24        5.97        (1.97 )      (0.20 )       10.13  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net increase (decrease) from investment operations

     2.63        6.40        (1.58 )      0.16        10.51  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Distributions(b)

             

From net investment income

     (0.41 )       (0.43 )       (0.40 )      (0.39 )       (0.43 ) 

From net realized gain

     (3.84 )       (0.35 )       (1.14 )      (5.05 )       —  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

     (4.25 )       (0.78 )       (1.54 )      (5.44 )       (0.43 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 29.86      $ 31.48      $ 25.86     $ 28.98      $ 34.26  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     8.63 %       25.15 %       (5.22 )%      0.40 %       44.01 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     0.96 %       0.96 %       0.97 %      0.97 %       1.10 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.79 %       0.79 %       0.79 %      0.79 %       0.79 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     1.28 %       1.48 %       1.47 %      1.16 %       1.33 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  386,921      $  393,788      $  345,671     $  394,334      $  405,607  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     120 %       118 %       116 %      136 %       126 %(f) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

From June 1, 2020 through February 28, 2021, the Fund invested in the Master Advantage Large Cap Value Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.03%.

(f) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to March 1, 2021.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   63

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Value Fund (continued)  
    Investor C  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		     Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 28.44      $ 23.43      $ 26.40     $ 31.69     $ 22.31  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income(a)

     0.14        0.19        0.17       0.12       0.16  

Net realized and unrealized gain (loss)

     2.02        5.40        (1.78 )      (0.19 )      9.37  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net increase (decrease) from investment operations

     2.16        5.59        (1.61 )      (0.07 )      9.53  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Distributions(b)

            

From net investment income

     (0.20 )       (0.23 )       (0.22 )      (0.17 )      (0.15 ) 

From net realized gain

     (3.84 )       (0.35 )       (1.14 )      (5.05 )      —  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total distributions

     (4.04 )       (0.58 )       (1.36 )      (5.22 )      (0.15 ) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net asset value, end of year

   $ 26.56      $ 28.44      $ 23.43     $ 26.40     $ 31.69  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total Return(c)

            

Based on net asset value

     7.80 %       24.21 %       (5.89 )%      (0.38 )%      42.99 % 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Ratios to Average Net Assets(d)

            

Total expenses

     1.75 %       1.76 %       1.74 %      1.73 %      1.85 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Total expenses after fees waived and/or reimbursed

     1.54 %       1.54 %       1.54 %      1.54 %      1.54 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Net investment income

     0.53 %       0.73 %       0.72 %      0.41 %      0.63 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Supplemental Data

            

Net assets, end of year (000)

   $  13,867      $  14,553      $  14,894     $  18,099     $  20,880  
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

Portfolio turnover rate

     120 %       118 %       116 %      136 %      126 %(f) 
 

 

 

     

 

 

     

 

 

    

 

 

    

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

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

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

From June 1, 2020 through February 28, 2021, the Fund invested in the Master Advantage Large Cap Value Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.03%.

(f) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to March 1, 2021.

See notes to financial statements.

 

 

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Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Value Fund (continued)  
    Class K  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 32.45      $ 26.64      $ 29.80     $ 35.08      $ 24.74  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

     0.50        0.53        0.48       0.47        0.47  

Net realized and unrealized gain (loss)

     2.31        6.14        (2.01 )      (0.22 )       10.38  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net increase (decrease) from investment operations

     2.81        6.67        (1.53 )      0.25        10.85  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Distributions(b)

             

From net investment income

     (0.51 )       (0.51 )       (0.49 )      (0.48 )       (0.51 ) 

From net realized gain

     (3.84 )       (0.35 )       (1.14 )      (5.05 )       —  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

     (4.35 )       (0.86 )       (1.63 )      (5.53 )       (0.51 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 30.91      $ 32.45      $ 26.64     $ 29.80      $ 35.08  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     8.94 %       25.49 %       (4.91 )%      0.69 %       44.48 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     0.63 %       0.62 %       0.63 %      0.63 %       0.74 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     0.49 %       0.49 %       0.49 %      0.49 %       0.49 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     1.57 %       1.80 %       1.77 %      1.47 %       1.62 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  12,116      $  12,053      $  10,451     $  10,210      $  8,258  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     120 %       118 %       116 %      136 %       126 %(f) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

From June 1, 2020 through February 28, 2021, the Fund invested in the Master Advantage Large Cap Value Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.03%.

(f) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to March 1, 2021.

See notes to financial statements.

 

 

F I N A N C I A L  H I G H L I G H T S

   65

Financial Highlights (continued)

(For a share outstanding throughout each period)

 

    BlackRock Advantage Large Cap Value Fund (continued)  
    Class R  
     Year Ended
05/31/25		      Year Ended
05/31/24		      Year Ended
05/31/23		     Year Ended
05/31/22		      Year Ended
05/31/21		  
           

Net asset value, beginning of year

   $ 29.80      $ 24.52      $ 27.56     $ 32.84      $ 23.18  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income(a)

     0.30        0.34        0.31       0.27        0.29  

Net realized and unrealized gain (loss)

     2.10        5.65        (1.87 )      (0.19 )       9.71  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net increase (decrease) from investment operations

     2.40        5.99        (1.56 )      0.08        10.00  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Distributions(b)

             

From net investment income

     (0.34 )       (0.36 )       (0.34 )      (0.31 )       (0.34 ) 

From net realized gain

     (3.84 )       (0.35 )       (1.14 )      (5.05 )       —  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total distributions

     (4.18 )       (0.71 )       (1.48 )      (5.36 )       (0.34 ) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net asset value, end of year

   $ 28.02      $ 29.80      $ 24.52     $ 27.56      $ 32.84  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total Return(c)

             

Based on net asset value

     8.31 %       24.84 %       (5.43 )%      0.14 %       43.63 % 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Ratios to Average Net Assets(d)

             

Total expenses

     1.33 %       1.35 %       1.36 %      1.35 %       1.41 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Total expenses after fees waived and/or reimbursed

     1.04 %       1.04 %       1.04 %      1.04 %       1.04 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Net investment income

     1.03 %       1.23 %       1.22 %      0.91 %       1.11 %(e) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Supplemental Data

             

Net assets, end of year (000)

   $  5,344      $  7,729      $  6,925     $  8,440      $  9,015  
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

Portfolio turnover rate

     120 %       118 %       116 %      136 %       126 %(f) 
 

 

 

     

 

 

     

 

 

    

 

 

     

 

 

  

 

(a) 

Based on average shares outstanding.

(b) 

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

(c) 

Where applicable, assumes the reinvestment of distributions.

(d) 

Excludes fees and expenses incurred indirectly as a result of investments in underlying funds.

(e) 

From June 1, 2020 through February 28, 2021, the Fund invested in the Master Advantage Large Cap Value Portfolio (the “Master Portfolio”) as part of a master-feeder structure and received its corresponding allocated fees waived and expenses and/or net investment income from the Master Portfolio. Includes the Fund’s share of the Master Portfolio’s allocated fees waived of 0.03%.

(f) 

Portfolio turnover rate includes transactions from the Master Portfolio prior to March 1, 2021.

See notes to financial statements.

 

 

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Notes to Financial Statements

 

1. ORGANIZATION

BlackRock FundsSM (the “Trust”) and BlackRock Large Cap Series Funds, Inc. (the “Corporation”) are each registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as open-end management investment companies. The Trust is organized as a Massachusetts business trust. The Corporation is organized as a Maryland corporation. BlackRock Advantage International Fund, BlackRock Advantage Large Cap Growth Fund and BlackRock Small Cap Core Fund are series of the Trust. BlackRock Advantage Large Cap Core Fund and BlackRock Advantage Large Cap Value Fund are series of the Corporation. The following are referred to herein collectively as the “Funds” or individually as a “Fund”:

 

     
Fund Name   Herein Referred To As    Diversification Classification

BlackRock Advantage International Fund

   Advantage International    Diversified

BlackRock Advantage Large Cap Growth Fund

   Advantage Large Cap Growth    Diversified

BlackRock Advantage Small Cap Core Fund

   Advantage Small Cap Core    Diversified

BlackRock Advantage Large Cap Core Fund

   Advantage Large Cap Core    Diversified

BlackRock Advantage Large Cap Value Fund

   Advantage Large Cap Value    Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional and Class K Shares are sold only to certain eligible investors. Investor A, Investor C and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C and Class R Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Class R Shares are sold only to certain employer-sponsored retirement plans. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C shareholders may vote on material changes to the Investor A Shares distribution and service plan).

 

       
Share Class   Initial Sales Charge    CDSC      Conversion Privilege

Institutional, Class K and Class R Shares

   No      No      None

Investor A Shares

   Yes      No (a)     None

Investor C Shares

   No      Yes (b)     To Investor A Shares after approximately 8 years

 

  (a)

Investor A Shares may be subject to a contingent deferred sales charge (“CDSC”) for certain redemptions where no initial sales charge was paid at the time of purchase.

 
  (b) 

A CDSC of 1.00% is assessed on certain redemptions of Investor C Shares made within one year after purchase.

 

The Board of Directors of the Corporation and the Board of Trustees of the Trust are collectively referred to throughout this report as the “Board”, and the directors/trustees thereof are collectively referred to throughout this report as “Directors.”

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of funds referred to as the BlackRock Multi-Asset Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

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

Investment Transactions and Income Recognition: For financial reporting purposes, investment transactions are recorded on the dates the transactions are executed. Realized gains and losses on investment transactions are determined using the specific identification method. Dividend income and capital gain distributions, if any, are recorded on the ex-dividend dates. Non-cash dividends, if any, are recorded on the ex-dividend dates at fair value. Dividends from foreign securities where the ex-dividend dates may have passed are subsequently recorded when the Funds are informed of the ex-dividend dates. Under the applicable foreign tax laws, a withholding tax at various rates may be imposed on capital gains, dividends and interest. Upon notification from issuers, a portion of the dividend income received from a real estate investment trust may be redesignated as a reduction of cost of the related investment and/or realized gain. Income, expenses and realized and unrealized gains and losses are allocated daily to each class based on its relative net assets.

Foreign Currency Translation: Each Fund’s books and records are maintained in U.S. dollars. Securities and other assets and liabilities denominated in foreign currencies are translated into U.S. dollars using exchange rates determined as of the close of trading on the New York Stock Exchange (“NYSE”). Purchases and sales of investments are recorded at the rates of exchange prevailing on the respective dates of such transactions. Generally, when the U.S. dollar rises in value against a foreign currency, the investments denominated in that currency will lose value; the opposite effect occurs if the U.S. dollar falls in relative value.

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

Foreign Taxes: The Funds may be subject to foreign taxes (a portion of which may be reclaimable) on income, stock dividends, capital gains on investments, or certain foreign currency transactions. All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign jurisdictions in which each Fund

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

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Notes to Financial Statements (continued)

 

invests. These foreign taxes, if any, are paid by each Fund and are reflected in its Statements of Operations as follows: foreign taxes withheld at source are presented as a reduction of income, foreign taxes on securities lending income are presented as a reduction of securities lending income, foreign taxes on stock dividends are presented as “Foreign taxes withheld”, and foreign taxes on capital gains from sales of investments and foreign taxes on foreign currency transactions are included in their respective net realized gain (loss) categories. Foreign taxes payable or deferred as of May 31, 2025, if any, are disclosed in the Statements of Assets and Liabilities.

Consistent with U.S. GAAP accrual requirements for uncertain tax positions, each Fund recognizes tax reclaims when the Fund determines that it is more likely than not that each Fund will sustain its position that it is due the reclaim.

The Funds file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. The Funds may record a reclaim receivable based on collectability, which includes factors such as the jurisdiction’s applicable laws, payment history and market convention. The Statements of Operations include tax reclaims recorded as well as professional and other fees, if any, associated with recovery of foreign withholding taxes.

Cash: The Funds may maintain cash at their custodian which, at times may exceed United States federally insured limits. The Funds may, at times, have outstanding cash disbursements that exceed deposited cash amounts at the custodian during the reporting period. The Funds are obligated to repay the custodian for any overdraft, including any related costs or expenses, where applicable. For financial reporting purposes, overdraft fees, if any, are included in interest expense in the Statements of Operations.

Collateralization: If required by an exchange or counterparty agreement, the Funds may be required to deliver/deposit cash and/or securities to/with an exchange, or broker-dealer or custodian as collateral for certain investments.

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

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

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

The Funds have an arrangement with their custodian whereby credits are earned on uninvested cash balances. For financial reporting purposes, custodian credits, if any, are included in interest income in the Statements of Operations.

Segment Reporting: The Funds adopted Financial Accounting Standards Board Update 2023-07, Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures (“ASU 2023-07”) during the period. The Funds’ adoption of the new standard impacted financial statement disclosures only and did not affect each Fund’s financial position or results of operations.

The Chief Financial Officer acts as the Funds’ Chief Operating Decision Maker (“CODM’) and is responsible for assessing performance and allocating resources with respect to each Fund. The CODM has concluded that each Fund operates as a single operating segment since each Fund has a single investment strategy as disclosed in their prospectus, against which the CODM assesses performance. The financial information provided to and reviewed by the CODM is presented within the Funds’ financial statements.

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

Investment Valuation Policies: Each Fund’s investments are valued at fair value (also referred to as “market value” within the financial statements) each day that the Fund is open for business and, for financial reporting purposes, as of the report date. U.S. GAAP defines fair value as the price a fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date. The Board of each Fund has approved the designation of each Fund’s Manager as the valuation designee for each Fund. Each Fund determines the fair values of its financial instruments using various independent dealers or pricing services under the Manager’s policies. If a security’s market price is not readily available or does not otherwise accurately represent the fair value of the security, the security will be valued in accordance with the Manager’s policies and procedures as reflecting fair value. The Manager has formed a committee (the “Valuation Committee”) to develop pricing policies and procedures and to oversee the pricing function for all financial instruments, with assistance from other BlackRock pricing committees.

Fair Value Inputs and Methodologies: The following methods and inputs are used to establish the fair value of each Fund’s assets and liabilities:

 

  ·  

Equity investments traded on a recognized securities exchange are valued at that day’s official closing price, as applicable, on the exchange where the stock is primarily traded. Equity investments traded on a recognized exchange for which there were no sales on that day may be valued at the last trade or last available bid (long positions) or ask (short positions) price.

 

  ·  

Investments in open-end U.S. mutual funds (including money market funds) are valued at that day’s net asset value (“NAV”).

 

  ·  

Futures contracts are valued based on that day’s last reported settlement or trade price on the exchange where the contract is traded.

Generally, trading in foreign instruments is substantially completed each day at various times prior to the close of trading on the New York Stock Exchange (“NYSE”). Each business day, the Funds use current market factors supplied by independent pricing services to value certain foreign instruments (“Systematic Fair Value Price”). The Systematic Fair Value Price is designed to value such foreign securities at fair value as of the close of trading on the NYSE, which occurs after the close of the local markets.

If events (e.g., market volatility, company announcement or a natural disaster) occur that are expected to materially affect the value of such investment, or in the event that application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not

 

 

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Notes to Financial Statements (continued)

 

available, the investment will be valued by the Valuation Committee in accordance with the Manager’s policies and procedures as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Valuation Committee include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Valuation Committee seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based upon all available factors that the Valuation Committee deems relevant and consistent with the principles of fair value measurement as of the measurement date.

For investments in equity or debt issued by privately held companies or funds (“Private Company” or collectively, the “Private Companies”) and other Fair Valued Investments, the fair valuation approaches that are used by the Valuation Committee and third-party pricing services utilized by the Valuation Committee include one or a combination of, but not limited to, the following inputs:

(i) recent market transactions, including secondary market transactions, merger or acquisition activity and subsequent rounds of financing in the underlying investment or comparable issuers

(ii) recapitalizations and other transactions across the capital structure

(iii) market or relevant indices multiples of comparable issuers

(iv) future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks

(v) quoted prices for similar investments or assets in active markets

(vi) other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates

(vii) audited or unaudited financial statements, investor communications and Private Company financial or operational metrics

(viii) relevant market news and other public sources.

Investments in series of preferred stock issued by Private Companies are typically valued utilizing a market approach to determine the enterprise value of the company. Such investments often contain rights and preferences that differ from other series of preferred and common stock of the same issuer. Enterprise valuation techniques such as an option pricing model (“OPM”), a probability weighted expected return model (“PWERM”), current value method or a hybrid of those techniques are used as deemed appropriate under the circumstances. The use of these valuation techniques involves a determination of the exit scenarios of the investment in order to appropriately allocate the enterprise value of the company among the various parts of its capital structure.

Private Companies are not subject to public company disclosure, timing, and reporting standards applicable to other investments held by a Fund. Certain information made available by a Private Company is as of a date that is earlier than the date a Fund is calculating its NAV. This factor may result in a difference between the value of the investment and the price a Fund could receive upon the sale of the investment.

Fair Value Hierarchy: Various inputs are used in determining the fair value of financial instruments at the measurement date. 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 that each Fund has the ability to access for identical assets or liabilities;

 

  ·  

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly; and

 

  ·  

Level 3 – Inputs that are unobservable and significant to the entire fair value measurement for the asset or liability (including the Valuation Committee’s assumptions used in determining the fair value of financial instruments).

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies that may not have a secondary market and/or may have a limited number of investors. The categorization of a value determined for financial instruments is based on the pricing transparency of the financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

4. SECURITIES AND OTHER INVESTMENTS

Securities Lending: Certain Funds may lend their securities to approved borrowers, such as brokers, dealers and other financial institutions. The borrower pledges and maintains with the Fund collateral consisting of cash, an irrevocable letter of credit issued by a bank, or securities issued or guaranteed by the U.S. Government. The initial collateral received by each Fund is required to have a value of at least 102% of the current value of the loaned securities for securities traded on U.S. exchanges and a value of at least 105% for all other securities. The collateral is maintained thereafter at a value equal to at least 100% of the current market value of the securities on loan. The market value of the loaned securities is determined at the close of each business day of the Fund and any additional required collateral is delivered to the Fund, or excess collateral returned by the Fund, on the next business day. During the term of the loan, the Funds are entitled to all distributions made on or in respect of the loaned securities, but do not

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   69

Notes to Financial Statements (continued)

 

receive interest income on securities received as collateral. Loans of securities are terminable at any time and the borrower, after notice, is required to return borrowed securities within the standard time period for settlement of securities transactions.

As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedules of Investments. Any non-cash collateral received cannot be sold, re-invested or pledged by the Fund, except in the event of borrower default. The securities on loan, if any, are disclosed in the Funds’ Schedules of Investments. The market value of any securities on loan and the value of related collateral, if any, are shown separately in the Statements of Assets and Liabilities as a component of investments at value – unaffiliated and collateral on securities loaned, respectively.

Securities lending transactions are entered into by the Funds under Master Securities Lending Agreements (each, an “MSLA”), which provide the right, in the event of default (including bankruptcy or insolvency), for the non-defaulting party to liquidate the collateral and calculate a net exposure to the defaulting party or request additional collateral. In the event that a borrower defaults, the Funds, as lender, would offset the market value of the collateral received against the market value of the securities loaned. When the value of the collateral is greater than that of the market value of the securities loaned, the lender is left with a net amount payable to the defaulting party. However, bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of an MSLA counterparty’s bankruptcy or insolvency. Under the MSLA, absent an event of default, the borrower can resell or re-pledge the loaned securities, and the Funds can reinvest cash collateral received in connection with loaned securities. Upon an event of default, the parties’ obligations to return the securities or collateral to the other party are extinguished, and the parties can resell or re-pledge the loaned securities or the collateral received in connection with the loaned securities in order to satisfy the defaulting party’s net payment obligation for all transactions under the MSLA. The defaulting party remains liable for any deficiency.

As of period end, the following table is a summary of the Funds’ securities on loan by counterparty which are subject to offset under an MSLA:

 

         

Fund Name/Counterparty

    
 Securities
Loaned at Value		  
 		     
 Cash Collateral
Received		  
(a) 		    
 Non-Cash Collateral
Received, at Fair Value		  
(a) 		    
 Net
Amount		  
 

Advantage International

         

BofA Securities, Inc.

   $ 78      $ (78 )    $ —     $ —  

Goldman Sachs & Co. LLC

     245,052        (245,052 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 245,130      $ (245,130 )    $ —     $ —  
 

 

 

     

 

 

    

 

 

    

 

 

  

Advantage Small Cap Core

         

Barclays Capital, Inc.

   $ 205,174      $ (205,174 )    $ —     $ —  

BNP Paribas SA

     3,695,191        (3,695,191 )      —       —  

BofA Securities, Inc.

     4,404,054        (4,404,054 )      —       —  

Citigroup Global Markets, Inc.

     14,448,734        (14,448,734 )      —       —  

J.P. Morgan Securities LLC

     36,119,465        (36,119,465 )      —       —  

Jefferies LLC

     229,870        (229,870 )      —       —  

Morgan Stanley

     43,242,110        (43,242,110 )      —       —  

National Financial Services LLC

     2,434,983        (2,434,983 )      —       —  

SG Americas Securities LLC

     336,841        (336,841 )      —       —  

State Street Bank & Trust Co.

     15,074,648        (15,074,648 )      —       —  

Toronto-Dominion Bank

     1,329,669        (1,329,669 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 121,520,739      $ (121,520,739 )    $ —     $ —  
 

 

 

     

 

 

    

 

 

    

 

 

  

Advantage Large Cap Value

         

J.P. Morgan Securities LLC

   $ 598,334      $ (598,334 )    $ —     $ —  

National Financial Services LLC

     313,992        (313,992 )      —       —  
 

 

 

     

 

 

    

 

 

    

 

 

  
  $ 912,326      $ (912,326 )    $ —     $ —  
 

 

 

     

 

 

    

 

 

    

 

 

  

 

  (a) 

Collateral received, if any, in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by each Fund is disclosed in the Funds’ Statements of Assets and Liabilities.

 

The risks of securities lending include the risk that the borrower may not provide additional collateral when required or may not return the securities when due. To mitigate these risks, each Fund benefits from a borrower default indemnity provided by BIM. BIM’s indemnity allows for full replacement of the securities loaned to the extent the collateral received does not cover the value on the securities loaned in the event of borrower default. Each Fund could incur a loss if the value of an investment purchased with cash collateral falls below the market value of the loaned securities or if the value of an investment purchased with cash collateral falls below the value of the original cash collateral received. Such losses are borne entirely by each Fund.

 

 

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Notes to Financial Statements (continued)

 

5. DERIVATIVE FINANCIAL INSTRUMENTS

The Funds engage in various portfolio investment strategies using derivative contracts both to increase the returns of the Funds and/or to manage their exposure to certain risks such as credit risk, equity risk, interest rate risk, foreign currency exchange rate risk, commodity price risk or other risks (e.g., inflation risk). Derivative financial instruments categorized by risk exposure are included in the Schedules of Investments. These contracts may be transacted on an exchange or over-the-counter (“OTC”).

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

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

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

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

Investment Advisory: The Trust, on behalf of Advantage International, Advantage Large Cap Growth and Advantage Small Cap Core, and the Corporation, on behalf of Advantage Large Cap Core and Advantage Large Cap Value, entered into an Investment Advisory Agreement with the Manager, the Funds’ investment adviser and an indirect, wholly-owned subsidiary of BlackRock, Inc. (“BlackRock”), to provide investment advisory services. The Manager is responsible for the management of each Fund’s portfolio and provides the personnel, facilities, equipment and certain other services necessary to the operations of each Fund.

For such services, each Fund pays the Manager a monthly fee at an annual rate equal to the following percentages of the average daily value of each Fund’s net assets:

 

   
   

Investment Advisory Fees

  
Average Daily Net Assets   Advantage
International		     Advantage Large
Cap Growth		     Advantage Small
Cap Core		     Advantage Large
Cap Core		     Advantage Large
Cap Value		  

First $1 billion

     0.45 %      0.57 %      0.45 %      0.45 %      0.49 % 

$1 billion - $3 billion

     0.42       0.54       0.42       0.42       0.46  

$3 billion - $5 billion

     0.41       0.51       0.41       0.41       0.44  

$5 billion - $10 billion

     0.39       0.50       0.39       0.39       0.43  

Greater than $10 billion

     0.38       0.48       0.38       0.38       0.42  

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

 

       
   

Advantage International

    

Advantage Large Cap Growth

    

Advantage Small Cap Core

  
Share Class   Service Fees     Distribution Fees     Service Fees     Distribution Fees     Service Fees     Distribution Fees  

Investor A

     0.25 %      N/A       0.25 %      N/A       0.25 %      N/A  

Investor C

     0.25       0.75 %      0.25       0.75 %      0.25 %      0.75 % 

Class R

     0.25       0.25       0.25       0.25       N/A       N/A  
           
         
               

Advantage Large Cap Core

    

Advantage Large Cap Value

  
Share Class                 Service Fees     Distribution Fees     Service Fees     Distribution Fees  

Investor A

         0.25 %      N/A       0.25 %      N/A  

Investor C

         0.25       0.75 %      0.25       0.75 % 

Class R

                     0.25       0.25       0.25       0.25  

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

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   71

Notes to Financial Statements (continued)

 

For the year ended May 31, 2025, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

 

         
Fund Name   Investor A        Investor C        Class R        Total  

Advantage International

   $ 723,707        $ 148,936        $ 177,612        $ 1,050,255  

Advantage Large Cap Growth

     1,470,050          319,070          8,852          1,797,972  

Advantage Small Cap Core

     1,356,687          120,485          —          1,477,172  

Advantage Large Cap Core

     4,007,589          469,262          83,498          4,560,349  

Advantage Large Cap Value

     994,462          143,582          33,548          1,171,592  

Administration: The Trust, on behalf of Advantage International, Advantage Large Cap Growth and Advantage Small Cap Core, and the Corporation, on behalf of Advantage Large Cap Core and Advantage Large Cap Value, entered into an Administration Agreement with the Manager, an indirect, wholly-owned subsidiary of BlackRock, to provide administrative services. For these services, the Manager receives an administration fee computed daily and payable monthly, based on a percentage of the average daily net assets of each Fund. The administration fee, which is shown as administration in the Statements of Operations, is paid at the annual rates below.

 

   
Average Daily Net Assets   Administration Fees  

First $500 million

     0.0425 % 

$500 million - $1 billion

     0.0400  

$1 billion - $2 billion

     0.0375  

$2 billion - $4 billion

     0.0350  

$4 billion - $13 billion

     0.0325  

Greater than $13 billion

     0.0300  

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

For the year ended May 31, 2025, the following table shows the class specific administration fees borne directly by each share class of each Fund:

 

             
Fund Name   Institutional      Investor A      Investor C      Class K      Class R      Total  

Advantage International

   $ 362,312      $ 57,927      $ 2,982      $ 110,791      $ 7,113      $ 541,125  

Advantage Large Cap Growth

     139,060        117,772        6,389        1,472        354        265,047  

Advantage Small Cap Core

     434,876        108,550        2,414        236,676        —        782,516  

Advantage Large Cap Core

     249,629        321,135        9,398        14,259        3,330        597,751  

Advantage Large Cap Value

     41,630        79,687        2,877        2,373        1,346        127,913  

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended May 31, 2025, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

 

     
Fund Name   Institutional      Total  

Advantage International

   $ 729,479      $ 729,479  

Advantage Large Cap Growth

     598,144        598,144  

Advantage Small Cap Core

     273,936        273,936  

Advantage Large Cap Core

     541,295        541,295  

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended May 31, 2025, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

 

             
Fund Name   Institutional      Investor A      Investor C      Class K      Class R      Total  

Advantage International

   $ 8,905      $ 15,722      $ 1,819      $ 691      $ 4,497      $ 31,634  

Advantage Large Cap Growth

     2,274        96,390        5,737        118        67        104,586  

Advantage Small Cap Core

     4,434        15,572        1,525        1,465        —        22,996  

Advantage Large Cap Core

     17,597        119,796        2,446        69        194        140,102  

Advantage Large Cap Value

     727        24,237        1,885        55        111        27,015  

For the year ended May 31, 2025, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

 

             
Fund Name   Institutional      Investor A      Investor C      Class K      Class R      Total  

Advantage International

   $  1,898,294      $ 338,614      $ 49,694      $ 8,568      $  118,011      $  2,413,181  

Advantage Large Cap Growth

     744,554        591,567        86,204        723        3,813        1,426,861  

Advantage Small Cap Core

     1,537,261        867,353        18,227        47,144        —        2,469,985  

Advantage Large Cap Core

     1,152,464        1,598,581        80,148        1,938        33,456        2,866,587  

Advantage Large Cap Value

     183,092        345,442        18,852        847        14,595        562,828  

 

 

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Notes to Financial Statements (continued)

 

Other Fees: For the year ended May 31, 2025, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

 

   
Fund Name   Amounts  

Advantage International

   $ 6,682  

Advantage Large Cap Growth

     25,653  

Advantage Small Cap Core

     14,702  

Advantage Large Cap Core

     32,631  

Advantage Large Cap Value

     8,603  

For the year ended May 31, 2025, affiliates received CDSCs as follows:

 

           
Share Class   Advantage
International		      Advantage
Large Cap
Growth		      Advantage
Small Cap
Core		      Advantage
Large Cap
Core		      Advantage
Large Cap
Value		  

Investor A

   $ 626      $ 1,103      $ 2,855      $ 11,172      $ 479  

Investor C

     161        790        3,582        1,980        3,770  

Expense Limitations, Waivers and Reimbursements: With respect to each Fund, the Manager contractually agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”) through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Directors who are not “interested persons” of the Trust or the Corporation, as defined in the 1940 Act (“Independent Directors”), or by a vote of a majority of the outstanding voting securities of a Fund. The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended May 31, 2025, the amounts waived were as follows:

 

   
Fund Name   Amounts Waived  

Advantage International

   $ 53,364  

Advantage Large Cap Growth

     9,750  

Advantage Small Cap Core

     31,107  

Advantage Large Cap Core

     20,841  

Advantage Large Cap Value

     4,461  

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through June 30, 2026. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund. For the year ended May 31, 2025, there were no fees waived and/or reimbursed by the Manager pursuant to this arrangement.

With respect to each Fund, the Manager contractually agreed to waive and/or reimburse fees or expenses in order to limit expenses, excluding interest expense, dividend expense, tax expense, acquired fund fees and expenses, and certain other fund expenses, which constitute extraordinary expenses not incurred in the ordinary course of each Fund’s business (“expense limitation”). The expense limitations as a percentage of average daily net assets are as follows:

 

           
Fund Name   Institutional     Investor A     Investor C     Class K     Class R  

Advantage International

     0.50 %      0.75 %      1.50 %      0.45 %      1.00 % 

Advantage Large Cap Growth

     0.62       0.87       1.62       0.57       1.12  

Advantage Small Cap Core

     0.50       0.75       1.50       0.45       N/A  

Advantage Large Cap Core

     0.48       0.73       1.48       0.43       0.98  

Advantage Large Cap Value

     0.54       0.79       1.54       0.49       1.04  

The Manager has agreed not to reduce or discontinue the contractual expense limitations through June 30, 2026 (June 30, 2035 with respect to Advantage Large Cap Growth Class R Shares), unless approved by the Board, including a majority of the Independent Directors, or by a vote of a majority of the outstanding voting securities of a Fund.

For the year ended May 31, 2025, the Manager waived and/or reimbursed investment advisory fees, which is included in fees waived and/or reimbursed by the Manager in the Statements of Operations, as follows:

 

   
Fund Name   Amounts Waived  

Advantage International

   $ 1,273,443  

Advantage Large Cap Growth

     804,406  

Advantage Small Cap Core

     1,193,541  

Advantage Large Cap Core

     1,721,773  

Advantage Large Cap Value

     697,256  

Advantage Large Cap Value also had a waiver of administration fees, which are included in Administration fees waived in the Statements of Operations. For the year ended May 31, 2025, the amount was $34.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   73

Notes to Financial Statements (continued)

 

In addition, these amounts waived and/or reimbursed by the Manager are included in administration fees waived by the Manager — class specific, transfer agent fees waived and/or reimbursed by the Manager — class specific, service and distribution fees waived and service distribution fees reimbursed respectively, in the Statements of Operations. For the year ended May 31, 2025, class specific expense waivers and/or reimbursements were as follows:

 

   
   

Administration Fees Waived by the Manager - Class Specific

  
Fund Name   Institutional      Investor A      Investor C      Class K      Class R      Total  

Advantage International

   $ 362,312      $ 57,927      $ 2,982      $  110,791      $ 7,113      $  541,125  

Advantage Large Cap Growth

     139,060        117,772        6,389        1,472        354        265,047  

Advantage Small Cap Core

     434,876        108,550        2,414        236,676        —        782,516  

Advantage Large Cap Core

     249,629        321,135        9,398        14,259        3,330        597,751  

Advantage Large Cap Value

     41,630        79,687        2,877        2,373        1,346        127,913  

 

   
   

Transfer Agent Fees Waived and/or

Reimbursed by the Manager - Class Specific

  
Fund Name   Institutional      Investor A      Investor C      Class K      Class R      Total  

Advantage International

   $ 989,309      $ 193,211      $ 42,026      $ 8,568      $  100,005      $  1,333,119  

Advantage Large Cap Growth

     396,897        295,344        69,876        723        2,923        765,763  

Advantage Small Cap Core

     449,820        592,883        12,039        47,144        —        1,101,886  

Advantage Large Cap Core

     528,499        790,514        56,023        1,938        25,390        1,402,364  

Advantage Large Cap Value

     79,010        144,858        11,420        847        11,152        247,287  

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. The Funds are responsible for fees in connection with the investment of cash collateral received for securities on loan (the “collateral investment fees”). The cash collateral is invested in a money market fund, BlackRock Cash Funds: Institutional, managed by the Manager or its affiliates. However, BIM has agreed to reduce the amount of securities lending income it receives in order to effectively limit the collateral investment fees the Funds bear to an annual rate of 0.04%. The SL Agency Shares of such money market fund will not be subject to a sales load, distribution fee or service fee. The money market fund in which the cash collateral has been reinvested may impose a discretionary liquidity fee of up to 2% on all redemptions. Discretionary liquidity fees may be imposed or terminated at any time at the discretion of the board of directors of the money market fund, or its delegate, if it is determined that such fee would be, or would not be, respectively, in the best interest of the money market fund. Additionally, the money market fund will impose a mandatory liquidity fee if the money market fund’s total net redemptions on a single day exceed 5% of the money market fund’s net assets, unless the amount of the fee is less than 0.01% of the value of the shares redeemed. The money market fund will determine the size of the mandatory liquidity fee by making a good faith estimate of certain costs the money market fund would incur if it were to sell a pro rata amount of each security in the portfolio to satisfy the amount of net redemptions on that day. There is no limit to the size of a mandatory liquidity fee. If the money market fund cannot estimate the costs of selling a pro rata amount of each portfolio security in good faith and supported by data, it is required to apply a default liquidity fee of 1% on the value of shares redeemed on that day.

Securities lending income is generally equal to the total of income earned from the reinvestment of cash collateral (and excludes collateral investment fees), and any fees or other payments to and from borrowers of securities. Each Fund retains a portion of the securities lending income and remits the remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, each Fund (except Advantage International) retains 81% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Pursuant to the current securities lending agreement, Advantage International retains 82% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeds specified thresholds, each Fund (except Advantage International), pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 84% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees. Advantage International, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 85% of securities lending income (which excludes collateral investment fees), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment fees.

Prior to January 1, 2025, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Multi-Asset Complex in a calendar year exceeded a specified threshold, each Fund (except Advantage International) would retain for the remainder of that calendar year securities lending income in an amount equal to 81% of securities lending income (which excluded collateral investment fees), and this amount retained could never be less than 70% of the total of securities lending income plus the collateral investment fees.

The share of securities lending income earned by each Fund is shown as securities lending income — affiliated — net in the Statements of Operations. For the year ended May 31, 2025, each Fund paid BIM the following amounts for securities lending agent services:

 

   
Fund Name   Amounts  

Advantage International

   $ 466  

Advantage Large Cap Growth

     1,014  

Advantage Small Cap Core

     100,497  

Advantage Large Cap Core

     3,272  

 

 

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Notes to Financial Statements (continued)

 

   
Fund Name   Amounts  

Advantage Large Cap Value

   $ 985  

Interfund Lending: Prior to March 3, 2025, in accordance with an exemptive order (the “Order”) from the SEC, each Fund other than Advantage Large Cap Growth could participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Effective March 3, 2025, the Interfund Lending Program was not renewed but remains available for renewal in the future.

During the period ended March 3, 2025, the Funds did not participate in the Interfund Lending Program.

Directors and Officers: Certain directors and/or officers of the Corporation and the Trust are directors and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Corporation’s/Trust’s Chief Compliance Officer, which is included in Directors and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common directors or trustees. For the year ended May 31, 2025, the purchase and sale transactions and any net realized gains (losses) with an affiliated fund in compliance with Rule 17a-7 under the 1940 Act were as follows:

 

       
Fund Name   Purchases      Sales      Net Realized
Gain		  

Advantage International

   $  623,319,073      $  448,077,469      $  14,457,252  

Advantage Large Cap Growth

     499,100,019        499,557,726        41,278,317  

Advantage Small Cap Core

     74,749,660        122,314,378        14,181,301  

Advantage Large Cap Core

     343,169,678        388,265,947        48,195,744  

Advantage Large Cap Value

     68,762,369        85,285,447        8,008,408  

7. PURCHASES AND SALES

For the year ended May 31, 2025, purchases and sales of investments, excluding short-term securities, were as follows:

 

     
Fund Name   Purchases      Sales  

Advantage International

   $  5,639,388,426      $  3,058,004,971  

Advantage Large Cap Growth

     1,953,866,009        1,989,314,086  

Advantage Small Cap Core

     3,871,936,784        3,401,818,458  

Advantage Large Cap Core

     3,463,132,134        3,615,443,295  

Advantage Large Cap Value

     762,648,597        802,864,164  

8. INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for a period of three years after they are filed. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of May 31, 2025, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements. Management’s analysis is based on the tax laws and judicial and administrative interpretations thereof in effect as of date of these financial statements, all of which are subject to change, possibly with retroactive effect which may impact the Funds’ NAV.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or NAVs per share. As of period end, permanent differences attributable to distributions in connection with fund share redemptions were reclassified to the following accounts:

 

     
Fund Name   Paid-in capital      Accumulated earnings (loss)  

Advantage Large Cap Value

   $ 3,450,328      $ (3,450,328 ) 

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   75

Notes to Financial Statements (continued)

 

The tax character of distributions paid was as follows:

 

     
Fund Name   Year Ended
05/31/25		      Year Ended
05/31/24		  

Advantage International

     

Ordinary income

   $ 52,333,022      $ 37,122,024  

Long term capital gains

     15,828,707        —  
 

 

 

     

 

 

  
  $ 68,161,729      $  37,122,024  
 

 

 

     

 

 

  

Advantage Large Cap Growth

     

Ordinary income

   $ 79,903,303      $ 1,571,523  

Long term capital gains

     183,862,841        7,955,409  
 

 

 

     

 

 

  
  $  263,766,144      $ 9,526,932  
 

 

 

     

 

 

  

Advantage Small Cap Core

     

Ordinary income

   $ 29,859,476      $ 35,871,400  
 

 

 

     

 

 

  

Advantage Large Cap Core

     

Ordinary income

   $ 166,740,762      $ 26,639,557  

Long term capital gains

     242,117,226        —  
 

 

 

     

 

 

  
  $ 408,857,988      $ 26,639,557  
 

 

 

     

 

 

  

Advantage Large Cap Value

     

Ordinary income

   $ 57,636,023      $ 8,914,549  

Long term capital gains

     27,592,167        7,076,825  
 

 

 

     

 

 

  
  $ 85,228,190      $ 15,991,374  
 

 

 

     

 

 

  

 

  

As of May 31, 2025, the tax components of accumulated earnings (loss) were as follows:

 

         
Fund Name   Undistributed
Ordinary Income		      Undistributed Long-Term
Capital Gains		      Net Unrealized
Gains (Losses)(a)		      Total  

Advantage International

   $ 123,499,477      $ 36,696,200      $ 624,864,507      $ 785,060,184  

Advantage Large Cap Growth

     21,433,081        29,563,233        491,187,913        542,184,227  

Advantage Small Cap Core

     7,356,801        6,922,566        62,326,135        76,605,502  

Advantage Large Cap Core

     17,827,530        134,512,190        901,509,415        1,053,849,135  

Advantage Large Cap Value

     9,802,910        24,797,933        56,329,083        90,929,926  

 

  (a) 

The difference between book-basis and tax-basis net unrealized gains (losses) was attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains (losses) on certain foreign currency contracts and futures contracts, the realization for tax purposes of unrealized gains on investments in passive foreign investment companies and the characterization of corporate actions.

 

During the year ended May 31, 2025, the Funds listed below utilized the following amounts of their respective capital loss carryforwards:

 

   
Fund Name   Utilized  

Advantage International

   $ 36,663,284  

Advantage Small Cap Core

     203,707,240  

As of May 31, 2025, gross unrealized appreciation and depreciation based on cost of investments (including short positions and derivatives, if any) for U.S. federal income tax purposes were as follows:

 

         
Fund Name   Tax Cost      Gross Unrealized
Appreciation		      Gross Unrealized
Depreciation		    

Net Unrealized
Appreciation

(Depreciation)

  

Advantage International

   $  4,295,261,005      $ 653,268,635      $ (29,512,790 )    $ 623,755,845  

Advantage Large Cap Growth

     917,220,893        512,954,652        (21,764,926 )      491,189,726  

Advantage Small Cap Core

     4,023,854,106        535,751,912        (473,425,778 )      62,326,134  

Advantage Large Cap Core

     2,118,454,353        975,973,345        (74,463,930 )      901,509,415  

Advantage Large Cap Value

     568,831,801        87,061,453        (30,718,413 )      56,343,040  

 

9.

BANK BORROWINGS

The Trust, on behalf of Advantage International, Advantage Large Cap Growth and Advantage Small Cap Core, and the Corporation, on behalf of Advantage Large Cap Core and Advantage Large Cap Value, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is party to a 364-day, $2.40 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) Overnight Bank Funding Rate (“OBFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum, (b) the Fed Funds

 

 

76   2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Notes to Financial Statements (continued)

 

rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed or (c) the sum of (x) Daily Simple Secured Overnight Financing Rate (“SOFR”) (but, in any event, not less than 0.00%) on the date the loan is made plus 0.10% and (y) 0.80% per annum. The agreement expires in April 2026 unless extended or renewed. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended May 31, 2025, the Funds did not borrow under the credit agreement.

 

10.

PRINCIPAL RISKS

In the normal course of business, the Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation, tariffs or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Local, regional or global events such as war, acts of terrorism, the spread of infectious illness or other public health issues, recessions, or other events could have a significant impact on the Funds and their investments. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

The Funds may be exposed to additional risks when reinvesting cash collateral in money market funds that do not seek to maintain a stable NAV per share of $1.00, which may be subject to mandatory and discretionary liquidity fees under certain circumstances.

Valuation Risk: The market values of equities, such as common stocks and preferred securities or equity related investments, such as futures and options, may decline due to general market conditions which are not specifically related to a particular company. They may also decline due to factors which affect a particular industry or industries. A Fund may invest in illiquid investments. An illiquid investment is any investment that a Fund reasonably expects cannot be sold or disposed of in current market conditions in seven calendar days or less without the sale or disposition significantly changing the market value of the investment. A Fund may experience difficulty in selling illiquid investments in a timely manner at the price that it believes the investments are worth. Prices may fluctuate widely over short or extended periods in response to company, market or economic news. Markets also tend to move in cycles, with periods of rising and falling prices. This volatility may cause each Fund’s NAV to experience significant increases or decreases over short periods of time. If there is a general decline in the securities and other markets, the NAV of a Fund may lose value, regardless of the individual results of the securities and other instruments in which a Fund invests. A Fund’s ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third-party service providers.

The price a Fund could receive upon the sale of any particular portfolio investment may differ from a Fund’s valuation of the investment, particularly for securities that trade in thin or volatile markets or that are valued using a fair valuation technique or a price provided by an independent pricing service. Changes to significant unobservable inputs and assumptions (i.e., publicly traded company multiples, growth rate, time to exit) due to the lack of observable inputs may significantly impact the resulting fair value and therefore a Fund’s results of operations. As a result, the price received upon the sale of an investment may be less than the value ascribed by a Fund, and a Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment.

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

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

With exchange-traded futures, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

Geographic/Asset Class Risk: A diversified portfolio, where this is appropriate and consistent with a fund’s objectives, minimizes the risk that a price change of a particular investment will have a material impact on the NAV of a fund. The investment concentrations within each Fund’s portfolio are disclosed in its Schedule of Investments.

Certain Funds invest a significant portion of their assets in securities within a single or limited number of market sectors. When a fund concentrates its investments in this manner, it assumes the risk that economic, regulatory, political and social conditions affecting such sectors may have a significant impact on the Fund and could affect the income from, or the value or liquidity of, the Fund’s portfolio. Investment percentages in specific sectors are presented in the Schedules of Investments.

Certain Funds invest a significant portion of their assets in securities of issuers located in the United States. A decrease in imports or exports, changes in trade regulations, inflation and/or an economic recession in the United States may have a material adverse effect on the U.S. economy and the securities listed on U.S. exchanges. Proposed and adopted policy and legislative changes in the United States may also have a significant effect on U.S. markets generally, as well as on the value of certain securities. Governmental agencies project that the United States will continue to maintain elevated public debt levels for the foreseeable future which may constrain future economic growth. Circumstances could arise that could prevent the timely payment of interest or principal on U.S. government debt, such as reaching the legislative “debt ceiling.” Such non-payment would result in substantial negative consequences for the U.S. economy and the global financial system. If U.S. relations with certain countries deteriorate,

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   77

Notes to Financial Statements (continued)

 

it could adversely affect issuers that rely on the United States for trade. The United States has also experienced increased internal unrest and discord. If these trends were to continue, they may have an adverse impact on the U.S. economy and the issuers in which the Funds invest.

Advantage International invests a significant portion of its assets in securities of issuers located in Europe or with significant exposure to European issuers or countries. The European financial markets have recently experienced volatility and adverse trends due to concerns about economic downturns in, or rising government debt levels of, several European countries as well as acts of war in the region. These events may spread to other countries in Europe and may affect the value and liquidity of certain of the Fund’s investments.

Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. The United Kingdom has withdrawn from the European Union, and one or more other countries may withdraw from the European Union and/or abandon the Euro, the common currency of the European Union. These events and actions have adversely affected, and may in the future adversely affect, the value and exchange rate of the Euro and may continue to significantly affect the economies of every country in Europe, including countries that do not use the Euro and non-European Union member states. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far reaching. In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022. The extent and duration of the military action, resulting sanctions and resulting future market disruptions in the region are impossible to predict, but have been, and may continue to be, significant and have a severe adverse effect on the region, including significant negative impacts on the economy and the markets for certain securities and commodities, such as oil and natural gas, as well as other sectors.

Advantage International invests a significant portion of its assets in securities of issuers located in Asia or with significant exposure to Asian issuers or countries. The Asian financial markets have recently experienced volatility and adverse trends due to concerns in several Asian countries regarding monetary policy, government intervention in the markets, rising government debt levels or economic downturns. These events may spread to other countries in Asia and may affect the value and liquidity of certain of the Fund’s investments.

Significant Shareholder Redemption Risk: Certain shareholders may own or manage a substantial amount of fund shares and/or hold their fund investments for a limited period of time. Large redemptions of fund shares by these shareholders may force a fund to sell portfolio securities, which may negatively impact the fund’s NAV, increase the fund’s brokerage costs, and/or accelerate the realization of taxable income/gains and cause the fund to make additional taxable distributions to shareholders.

 

11.

CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

 

     
    Year Ended 05/31/25      Year Ended 05/31/24  
Fund Name/Share Class   Shares      Amount      Shares      Amount  

Advantage International

           

Institutional

           

Shares sold

     109,283,830      $  2,200,589,185        23,297,357      $ 414,287,683  

Shares issued in reinvestment of distributions

     2,331,042        45,153,839        1,383,179        24,124,489  

Shares redeemed

     (24,097,125 )       (486,562,846 )       (10,399,113 )       (186,487,678 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    87,517,747      $ 1,759,180,178        14,281,423      $ 251,924,494  
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     5,614,729      $ 110,909,359        1,964,803      $ 34,539,277  

Shares issued in reinvestment of distributions

     402,643        7,702,303        319,591        5,512,362  

Shares redeemed

     (2,442,734 )       (47,715,668 )       (2,564,768 )       (44,937,995 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    3,574,638      $ 70,895,994        (280,374 )     $ (4,886,356 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor C

           

Shares sold

     205,037      $ 3,909,116        759,644      $ 12,470,746  

Shares issued in reinvestment of distributions

     20,101        372,401        8,965        149,273  

Shares redeemed and automatic conversion of shares

     (200,918 )       (3,828,891 )       (141,151 )       (2,420,929 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    24,220      $ 452,626        627,458      $ 10,199,090  
 

 

 

     

 

 

     

 

 

     

 

 

  

Class K

           

Shares sold

     51,396,214      $ 991,005,728        2,590,705      $ 46,132,287  

Shares issued in reinvestment of distributions

     462,357        8,955,985        344,221        6,005,317  

Shares redeemed

     (10,829,822 )       (215,078,714 )       (1,798,410 )       (32,102,894 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    41,028,749      $ 784,882,999        1,136,516      $ 20,034,710  
 

 

 

     

 

 

     

 

 

     

 

 

  

 

 

78   2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Notes to Financial Statements (continued)

 

     
    Year Ended 05/31/25      Year Ended 05/31/24  
Fund Name/Share Class   Shares      Amount      Shares      Amount  

Advantage International (continued)

           

Class R

           

Shares sold

     487,845      $ 9,494,280        1,017,841      $ 17,350,290  

Shares issued in reinvestment of distributions

     54,195        1,035,538        35,544        612,167  

Shares redeemed

     (580,304 )       (11,354,718 )       (381,525 )       (6,684,230 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    (38,264 )     $ (824,900 )       671,860      $ 11,278,227  
 

 

 

     

 

 

     

 

 

     

 

 

  
    132,107,090      $ 2,614,586,897        16,436,883      $ 288,550,165  
 

 

 

     

 

 

     

 

 

     

 

 

  

Advantage Large Cap Growth

           

Institutional

           

Shares sold

     5,564,680      $ 137,365,853        3,274,605      $ 74,950,123  

Shares issued in reinvestment of distributions

     4,987,362        129,647,525        235,499        5,243,158  

Shares redeemed

     (4,696,936 )       (123,889,192 )       (4,350,268 )       (97,770,614 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    5,855,106      $ 143,124,186        (840,164 )     $ (17,577,333 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     1,369,989      $ 32,838,557        985,440      $ 21,327,952  

Shares issued in reinvestment of distributions

     4,866,084        117,659,241        183,148        3,842,876  

Shares redeemed

     (3,106,423 )       (74,148,286 )       (2,634,857 )       (56,679,531 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    3,129,650      $ 76,349,512        (1,466,269 )     $ (31,508,703 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor C

           

Shares sold

     292,255      $ 5,317,763        1,314,696      $ 20,739,576  

Shares issued in reinvestment of distributions

     447,907        8,228,042        15,709        263,290  

Shares redeemed and automatic conversion of shares

     (536,328 )       (9,470,996 )       (328,177 )       (5,811,599 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    203,834      $ 4,074,809        1,002,228      $ 15,191,267  
 

 

 

     

 

 

     

 

 

     

 

 

  

Class K

           

Shares sold

     105,078      $ 2,703,814        138,788      $ 3,023,950  

Shares issued in reinvestment of distributions

     52,367        1,361,231        2,010        44,757  

Shares redeemed

     (59,441 )       (1,535,411 )       (43,058 )       (985,582 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    98,004      $ 2,529,634        97,740      $ 2,083,125  
 

 

 

     

 

 

     

 

 

     

 

 

  

Class R

           

Shares sold

     34,108      $ 825,804        36,480      $ 901,709  

Shares issued in reinvestment of distributions

     12,194        312,822        225        4,973  

Shares redeemed

     (14,981 )       (380,780 )       (3,405 )       (74,617 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    31,321      $ 757,846        33,300      $ 832,065  
 

 

 

     

 

 

     

 

 

     

 

 

  
    9,317,915      $ 226,835,987        (1,173,165 )     $ (30,979,579 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Advantage Small Cap Core

           

Institutional

           

Shares sold

     36,255,072      $ 653,384,270        21,347,099      $ 333,503,755  

Shares issued in reinvestment of distributions

     877,781        16,960,194        1,441,914        22,168,806  

Shares redeemed

     (27,741,700 )       (495,346,481 )       (59,497,255 )       (936,471,823 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    9,391,153      $ 174,997,983        (36,708,242 )     $ (580,799,262 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     26,250,441      $ 458,810,007        4,034,735      $ 63,459,431  

Shares issued in reinvestment of distributions

     155,609        3,014,256        180,437        2,751,052  

Shares redeemed

     (10,062,007 )       (180,510,807 )       (4,608,184 )       (72,025,154 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    16,344,043      $ 281,313,456        (393,012 )     $ (5,814,671 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   79

Notes to Financial Statements (continued)

 

     
    Year Ended 05/31/25      Year Ended 05/31/24  
Fund Name/Share Class   Shares      Amount      Shares      Amount  

Advantage Small Cap Core (continued)

           

Investor C

           

Shares sold

     192,135      $ 3,354,087        207,623      $ 3,184,439  

Shares issued in reinvestment of distributions

     133        2,511        1,527        22,365  

Shares redeemed and automatic conversion of shares

     (259,412 )       (4,353,432 )       (194,068 )       (2,922,880 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    (67,144 )     $ (996,834 )       15,082      $ 283,924  
 

 

 

     

 

 

     

 

 

     

 

 

  

Class K

           

Shares sold

     14,776,571      $ 264,820,724        10,206,738      $ 162,561,113  

Shares issued in reinvestment of distributions

     508,877        9,825,285        706,613        10,874,632  

Shares redeemed

     (13,506,537 )       (241,870,997 )       (16,148,319 )       (253,421,934 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    1,778,911      $ 32,775,012        (5,234,968 )     $ (79,986,189 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    27,446,963      $ 488,089,617        (42,321,140 )     $  (666,316,198 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Advantage Large Cap Core

           

Institutional

           

Shares sold

     4,901,286      $ 108,928,769        4,253,897      $ 85,531,661  

Shares issued in reinvestment of distributions

     6,824,168        152,053,419        692,648        13,247,256  

Shares redeemed

     (8,046,068 )       (178,761,785 )       (36,907,101 )       (738,281,082 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    3,679,386      $ 82,220,403        (31,960,556 )     $ (639,502,165 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor A

           

Shares sold and automatic conversion of shares

     3,492,799      $ 72,667,388        4,162,870      $ 77,141,036  

Shares issued in reinvestment of distributions

     10,131,144        211,932,648        603,551        10,921,227  

Shares redeemed

     (10,172,908 )       (212,016,675 )       (9,152,406 )       (171,310,982 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    3,451,035      $ 72,583,361        (4,385,985 )     $ (83,248,719 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor C

           

Shares sold

     499,466      $ 7,992,470        1,011,189      $ 14,414,272  

Shares issued in reinvestment of distributions

     499,829        8,029,473        12,705        182,763  

Shares redeemed and automatic conversion of shares

     (813,790 )       (12,914,239 )       (782,761 )       (11,561,228 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    185,505      $ 3,107,704        241,133      $ 3,035,807  
 

 

 

     

 

 

     

 

 

     

 

 

  

Class K

           

Shares sold

     4,218,196      $ 93,555,579        766,994      $ 15,907,891  

Shares issued in reinvestment of distributions

     269,362        6,007,448        16,885        323,379  

Shares redeemed

     (807,452 )       (17,528,032 )       (753,056 )       (14,656,265 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    3,680,106      $ 82,034,995        30,823      $ 1,575,005  
 

 

 

     

 

 

     

 

 

     

 

 

  

Class R

           

Shares sold

     156,730      $ 2,856,469        346,800      $ 5,958,058  

Shares issued in reinvestment of distributions

     132,563        2,468,740        6,126        100,028  

Shares redeemed

     (425,172 )       (8,167,576 )       (119,768 )       (2,062,229 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    (135,879 )     $ (2,842,367 )       233,158      $ 3,995,857  
 

 

 

     

 

 

     

 

 

     

 

 

  
    10,860,153      $ 237,104,096        (35,841,427 )     $ (714,144,215 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Advantage Large Cap Value

           

Institutional

           

Shares sold

     1,450,247      $ 45,574,832        927,476      $ 27,481,322  

Shares issued in reinvestment of distributions

     764,805        23,946,218        156,585        4,498,448  

Shares redeemed

     (1,483,999 )       (46,611,031 )       (1,298,843 )       (37,668,127 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    731,053      $ 22,910,019        (214,782 )     $ (5,688,357 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

 

 

80   2 0 2 5 B L A C K R O C K A N N U A L F I N A N C I A L S T A T E M E N T S A N D A D D I T I O N A L I N F O R M A T I O N

Notes to Financial Statements (continued)

 

     
    Year Ended 05/31/25      Year Ended 05/31/24  
Fund Name/Share Class   Shares      Amount      Shares      Amount  

Advantage Large Cap Value (continued)

           

Investor A

           

Shares sold and automatic conversion of shares

     704,352      $ 21,472,423        633,902      $ 18,495,637  

Shares issued in reinvestment of distributions

     1,599,849        48,484,401        323,626        9,028,137  

Shares redeemed

     (1,852,410 )       (56,231,657 )       (1,815,261 )       (52,151,342 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    451,791      $ 13,725,167        (857,733 )     $  (24,627,568 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Investor C

           

Shares sold

     101,045      $ 2,742,000        59,407      $ 1,538,116  

Shares issued in reinvestment of distributions

     71,958        1,952,910        13,191        333,274  

Shares redeemed and automatic conversion of shares

     (162,600 )       (4,396,509 )       (196,611 )       (5,153,312 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    10,403      $ 298,401        (124,013 )     $ (3,281,922 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Class K

           

Shares sold

     99,111      $ 3,088,303        193,424      $ 5,568,726  

Shares issued in reinvestment of distributions

     50,029        1,566,111        14,682        421,603  

Shares redeemed

     (128,551 )       (4,045,979 )       (229,117 )       (7,039,729 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    20,589      $ 608,435        (21,011 )     $ (1,049,400 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

Class R

           

Shares sold

     18,803      $ 536,038        24,923      $ 685,611  

Shares issued in reinvestment of distributions

     37,342        1,065,365        7,025        185,628  

Shares redeemed

     (124,836 )       (3,502,166 )       (55,037 )       (1,487,018 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    (68,691 )     $ (1,900,763 )       (23,089 )     $ (615,779 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  
    1,145,145      $ 35,641,259        (1,240,628 )     $ (35,263,026 ) 
 

 

 

     

 

 

     

 

 

     

 

 

  

As of May 31, 2025, shares owned by BlackRock Financial Management, Inc., an affiliate of the Funds, were as follows:

 

   
Share Class   Advantage
Large Cap
Growth		  

Class K

     12,217  

 

12.

FOREIGN WITHHOLDINGS TAX CLAIMS

The Internal Revenue Service (“IRS”) has issued guidance to address U.S. income tax liabilities attributable to fund shareholders resulting from the recovery of foreign taxes withheld in prior calendar years. These withheld foreign taxes were passed through to shareholders in the form of foreign tax credits in the year the taxes were withheld. Assuming there are sufficient foreign taxes paid which Advantage International is able to pass through to shareholders as a foreign tax credit in the current year, the Fund will be able to offset the prior years’ withholding taxes recovered against the foreign taxes paid in the current year. Accordingly, no federal income tax liability is recorded by the Fund.

Certain of the outstanding foreign tax reclaims are not deemed by the Fund to meet the recognition criteria under U.S. GAAP as of May 31, 2025 and have not been recorded in the applicable Fund’s net asset value. The recognition by the Fund of these amounts would have a positive impact on the applicable Fund’s performance. If a Fund receives a tax refund that has not been previously recorded, investors in the Fund at the time the claim is successful will benefit from any resulting increase in the Fund’s NAV. Investors who sold their shares prior to such time will not benefit from such NAV increase.

 

13.

SUBSEQUENT EVENTS

Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment or additional disclosure in the financial statements.

 

 

N O T E S  T O  F I N A N C I A L  S T A T E M E N T S

   81

Report of Independent Registered Public Accounting Firm

 

To the Shareholders of BlackRock Advantage International Fund, BlackRock Advantage Large Cap Growth Fund and BlackRock Advantage Small Cap Core Fund and the Board of Trustees of BlackRock FundsSM, and to the Shareholders of BlackRock Advantage Large Cap Core Fund and BlackRock Advantage Large Cap Value Fund and the Board of Directors of BlackRock Large Cap Series Funds, Inc.:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock Advantage International Fund, BlackRock Advantage Large Cap Growth Fund, and BlackRock Advantage Small Cap Core Fund of BlackRock FundsSM, and BlackRock Advantage Large Cap Core Fund and BlackRock Advantage Large Cap Value Fund of BlackRock Large Cap Series Funds, Inc. (the “Funds”), including the schedules of investments, as of May 31, 2025, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for the periods indicated in the table below, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of May 31, 2025, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for the periods indicated in the table below, in conformity with accounting principles generally accepted in the United States of America.

 

   
 Fund   Financial Highlights

BlackRock Advantage International Fund, BlackRock Advantage Large Cap Growth Fund, BlackRock Advantage Large Cap Value Fund, BlackRock Advantage Small Cap Core Fund

   For each of the five years in the period ended May 31, 2025

 BlackRock Advantage Large Cap Core Fund

   For each of the three years in the period ended May 31, 2025, for the period from October 1, 2021 through May 31, 2022, and for each of the two years in the period ended September 30, 2021

Basis for Opinion

These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement, whether due to error or fraud. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of May 31, 2025, by correspondence with custodians or counterparties; when replies were not received, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

/s/ Deloitte & Touche LLP

Boston, Massachusetts

July 22, 2025

We have served as the auditor of one or more BlackRock investment companies since 1992.

 

 

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Important Tax Information (unaudited)

 

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified dividend income for individuals for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Qualified Dividend
Income		  

 

  

Advantage International

   $ 90,455,486  

Advantage Large Cap Growth

     8,375,591  

Advantage Small Cap Core

     38,421,070  

Advantage Large Cap Core

     35,961,936  

Advantage Large Cap Value

     10,917,401  

 

  

The following amounts, or maximum amounts allowable by law, are hereby designated as qualified business income for individuals for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Qualified Business
Income		  

 

  

Advantage Large Cap Growth

   $ 45,895  

Advantage Large Cap Core

     1,202,951  

Advantage Large Cap Value

     602,162  

 

  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as capital gain dividends, subject to a long-term capital gains tax rate as noted below, for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   20% Rate
Long-Term
Capital Gain
Dividends		  

 

  

Advantage International

   $ 15,828,707  

Advantage Large Cap Growth

     183,862,841  

Advantage Large Cap Core

     242,117,226  

Advantage Large Cap Value

     29,838,821  

 

  

The Fund intends to pass through to its shareholders the following amount, or maximum amount allowable by law, of foreign source income earned and foreign taxes paid for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Foreign Source
Income Earned		      Foreign Taxes
Paid		  

 

  

Advantage International

   $ 90,749,739      $ 8,078,379  

 

  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, of distributions from direct federal obligation interest for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Federal Obligation
Interest		  

 

  

Advantage International

   $ 1,380,159  

Advantage Small Cap Core

     568,598  

Advantage Large Cap Core

     327,494  

Advantage Large Cap Value

     88,901  

 

  

The law varies in each state as to whether and what percent of ordinary income dividends attributable to federal obligations is exempt from state income tax. Shareholders are advised to check with their tax advisers to determine if any portion of the dividends received is exempt from state income tax.

The following percentages, or maximum percentages allowable by law, of ordinary income distributions paid during the fiscal year ended May 31, 2025 qualified for the dividends-received deduction for corporate shareholders:

 

 

  
Fund Name   Dividends-Received 
Deduction 		  

 

  

Advantage Large Cap Growth

     14.24%  

Advantage Small Cap Core

     100.00   

Advantage Large Cap Core

     31.68   

Advantage Large Cap Value

     36.65   

 

  

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest income eligible to be treated as a Section 163(j) interest dividend for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Interest Dividends  

 

  

Advantage International

   $ 2,769,038  

Advantage Small Cap Core

     1,146,368  

Advantage Large Cap Core

     660,016  

Advantage Large Cap Value

     179,194  

 

  

 

 

I M P O R T A N T  T A X  I N F O R M A T I O N

   83

Important Tax Information (unaudited) (continued)

 

The Funds hereby designate the following amounts, or maximum amounts allowable by law, as interest-related dividends and qualified short-term capital gains eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations for the fiscal year ended May 31, 2025:

 

 

  
Fund Name   Interest-Related
Dividends		      Qualified
Short-Term
Capital Gains		  

 

  

Advantage International

   $ 2,782,019      $ —  

Advantage Large Cap Growth

     —        79,576,383  

Advantage Small Cap Core

     1,146,368        —  

Advantage Large Cap Core

     660,137        146,283,074  

Advantage Large Cap Value

     179,200        48,937,302  

 

  

 

 

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Disclosure of Investment Advisory Agreements

 

The Board of Trustees of BlackRock Funds (the “Trust”) met on April 22, 2025 and May 20-21, 2025 to consider the approval to continue the investment advisory agreement (the “Trust Advisory Agreement”) between the Trust, on behalf of BlackRock Advantage International Fund (“Advantage International Fund”), BlackRock Advantage Large Cap Growth Fund (“Advantage Large Cap Growth Fund”) and BlackRock Advantage Small Cap Core Fund (“Advantage Small Cap Core Fund”), and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

The Board of Directors of BlackRock Large Cap Series Funds, Inc. (the “Corporation”) met on April 22, 2025 and May 20-21, 2025 to consider the approval to continue the investment advisory agreement (the “Corporation Advisory Agreement”) between the Corporation, on behalf of BlackRock Advantage Large Cap Value Fund (“Advantage Large Cap Value Fund”) and BlackRock Advantage Large Cap Core Fund (“Advantage Large Cap Core Fund”), and the Manager, each Fund’s investment advisor.

Advantage International Fund, Advantage Large Cap Growth Fund, Advantage Small Cap Core Fund, Advantage Large Cap Value Fund and Advantage Large Cap Core Fund are referred to herein individually as a “Fund” or collectively as the “Funds.” The Trust Advisory Agreement and the Corporation Advisory Agreement are referred to herein individually as an “Agreement” or collectively as the “Agreements.” For simplicity: (a) the Board of Trustees of the Trust and the Board of Directors of the Corporation are referred to herein individually as the “Board” and collectively as the “Boards” and the members are referred to as “Board Members”; and (b) the meetings held on April 22, 2025 are referred to as the “April Meeting” and the meetings held on May 20-21, 2025 are referred to as the “May Meeting.”

The Approval Process

Consistent with the requirements of the Investment Company Act of 1940 (the “1940 Act”), the Boards consider the approval of the continuation of the pertinent Agreement for each Fund on an annual basis. The Board Members who are not “interested persons” of the Trust or the Corporation, as defined in the 1940 Act, are considered independent Board Members (the “Independent Board Members”). Each Board’s consideration entailed a year-long deliberative process during which the Board and its committees assessed BlackRock’s various services to the pertinent Fund, including through the review of written materials and oral presentations, and the review of additional information provided in response to requests from the Independent Board Members. The Boards had four quarterly meetings per year, as well as numerous ad hoc meetings and executive sessions throughout the year, as needed. The committees of each Board similarly met throughout the year. The Boards also held the April Meeting to consider specific information regarding the renewal of the Agreements. In considering the renewal of the Agreements, the Boards assessed, among other things, the nature, extent and quality of the services provided to the Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management services; accounting oversight; administrative and shareholder services; oversight of the Fund’s service providers; risk management and oversight; and legal, regulatory and compliance services. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of BlackRock’s management.

During the year, the Boards, acting directly and through their committees, considered information that was relevant to their annual consideration of the renewal of the pertinent Agreement, including the services and support provided by BlackRock to the Funds and their shareholders. BlackRock also furnished additional information to the Boards in response to specific questions from the Boards. Among the matters the Boards considered were: (a) investment performance for one-year, three-year, five-year, and/or since inception periods, as applicable, against peer funds, relevant benchmarks, and other performance metrics, as applicable, as well as BlackRock senior management’s and portfolio managers’ investment performance analyses, and the reasons for any outperformance or underperformance relative to its peers, benchmarks, and other performance metrics, as applicable; (b) fees, including advisory, administration, if applicable, and other amounts paid to BlackRock and its affiliates by the Fund for services; (c) Fund operating expenses and how BlackRock allocates expenses to the Fund; (d) the resources devoted to, risk oversight of, and compliance reports relating to, implementation of the Fund’s investment objective, policies and restrictions, and meeting regulatory requirements; (e) BlackRock’s and each Fund’s adherence to applicable compliance policies and procedures; (f) the nature, character and scope of non-investment management services provided by BlackRock and its affiliates and the estimated cost of such services, as applicable; (g) BlackRock’s and other service providers’ internal controls and risk and compliance oversight mechanisms; (h) BlackRock’s implementation of the proxy voting policies approved by the Board; (i) the use of brokerage commissions and execution quality of portfolio transactions; (j) BlackRock’s implementation of each Fund’s valuation and liquidity procedures; (k) an analysis of management fees paid to BlackRock for products with similar investment mandates across the open-end fund, exchange-traded fund (“ETF”), closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable, and the similarities and differences between these products and the services provided as compared to the Fund; (l) BlackRock’s compensation methodology for its investment professionals and the incentives and accountability it creates, along with investment professionals’ investments in the fund(s) they manage; and (m) periodic updates on BlackRock’s business.

Prior to and in preparation for the April Meeting, the Boards received and reviewed materials specifically relating to the renewal of the pertinent Agreement. The Independent Board Members continuously engaged in a process with their independent legal counsel and BlackRock to review the nature and scope of the information provided to the Board to better assist their deliberations. The materials provided in connection with the April Meeting included, among other things: (a) information independently compiled and prepared by Broadridge Financial Solutions, Inc. (“Broadridge”), based on either a Lipper classification or Morningstar category, regarding each Fund’s fees and expenses as compared with a peer group of funds as determined by Broadridge (“Expense Peers”) and the investment performance of each Fund as compared with a peer group of funds (“Performance Peers”); (b) information on the composition of the Expense Peers and Performance Peers and a description of Broadridge’s methodology; (c) information on the estimated profits realized by BlackRock and its affiliates pursuant to the Agreements and a discussion of fall-out benefits to BlackRock and its affiliates; (d) a general analysis provided by BlackRock concerning investment management fees received in connection with other types of investment products, such as institutional accounts, sub-advised mutual funds, ETFs, closed-end funds, open-end funds, and separately managed accounts, under similar investment mandates, as well as the performance of such other products, as applicable; (e) a review of non-management fees; (f) the existence, impact and sharing of potential economies of scale, if any, with the Funds; (g) a summary of aggregate amounts paid by each Fund to BlackRock; (h) sales and redemption data regarding each Fund’s shares; and (i) various additional information requested by the Boards as appropriate regarding BlackRock’s and the Funds’ operations.

At the April Meeting, each Board reviewed materials relating to its consideration of the pertinent Agreement and the Independent Board Members presented BlackRock with questions and requests for additional information. BlackRock responded to these questions and requests with additional written information in advance of the May Meeting, and such responses were reviewed by the Board Members.

At the May Meeting, each Board concluded its assessment of, among other things: (a) the nature, extent and quality of the services provided by BlackRock; (b) the investment performance of each Fund as compared to its Performance Peers and to other metrics, as applicable; (c) the advisory fee and the estimated cost of the services and estimated

 

 

D I S C L O S U R E  O F  I N V E S T M E N T  A D V I S O R Y  A G R E E M E N T S

   85

Disclosure of Investment Advisory Agreements (continued)

 

profits realized by BlackRock and its affiliates from their relationship with the Funds; (d) each Fund’s fees and expenses compared to its Expense Peers; (e) the existence and sharing of potential economies of scale; (f) any fall-out benefits to BlackRock and its affiliates as a result of BlackRock’s relationship with the Funds; and (g) other factors deemed relevant by the Board Members.

Each Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. Each Board noted the willingness of BlackRock’s personnel to engage in open, candid discussions with the Board. Each Board evaluated the information available to it on a fund-by-fund basis. The following paragraphs provide more information about some of the primary factors that were relevant to each Board’s decision. The Board Members did not identify any particular information, or any single factor as determinative, and each Board Member may have attributed different weights to the various items and factors considered.

A. Nature, Extent and Quality of the Services Provided by BlackRock

Each Board, including the Independent Board Members, reviewed the nature, extent and quality of services provided by BlackRock, including the investment advisory services, and the resulting performance of the applicable Fund. Throughout the year, each Board compared each Fund’s performance to the performance of a comparable group of mutual funds, relevant benchmarks, and performance metrics, as applicable. The Boards met with BlackRock’s senior management personnel responsible for investment activities, including the senior investment officers. Each Board also reviewed the materials provided by each Fund’s portfolio management team discussing the Fund’s performance, investment strategies and outlook.

Each Board considered, among other factors, with respect to BlackRock: the experience of each Fund’s portfolio management team; research capabilities; investments by portfolio managers in the funds they manage; portfolio trading capabilities; use of certain trading, portfolio management, operations and/or information systems owned by BlackRock; commitment to compliance; credit analysis capabilities; risk analysis and oversight capabilities; and the approach to training and retaining portfolio managers and other research, advisory and management personnel. The Boards also considered BlackRock’s overall risk management program, including the continued efforts of BlackRock and its affiliates to address cybersecurity risks and the role of BlackRock’s Risk & Quantitative Analysis Group. Each Board engaged in a review of BlackRock’s compensation structure with respect to each Fund’s portfolio management team and BlackRock’s ability to attract and retain high-quality talent and create performance incentives.

In addition to investment advisory services, the Boards considered the nature and quality of the administrative and other non-investment advisory services provided to each Fund. BlackRock and its affiliates provide the Funds with certain administrative, shareholder and other services (in addition to any such services provided to the Funds by third-parties) and officers and other personnel as are necessary for the operations of the Funds. In particular, BlackRock and its affiliates provide the Funds with administrative services including, among others: (i) responsibility for disclosure documents, such as the prospectus, the summary prospectus (as applicable), the statement of additional information and periodic shareholder reports; (ii) oversight of daily accounting and pricing; (iii) responsibility for periodic filings with regulators; (iv) overseeing and coordinating the activities of third-party service providers including, among others, each Fund’s custodian, fund accountant, transfer agent, and auditor; (v) organizing Board meetings and preparing the materials for such Board meetings; (vi) providing legal and compliance support; (vii) furnishing analytical and other support to assist the Board in its consideration of strategic issues such as the merger, consolidation or repurposing of certain open-end funds; and (viii) performing or managing administrative functions necessary for the operation of the Funds, such as tax reporting, expense management, fulfilling regulatory filing requirements, overseeing each Fund’s distribution partners, and shareholder call center and other services. The Boards reviewed the structure and duties of BlackRock’s fund administration, shareholder services, and legal and compliance departments and considered BlackRock’s policies and procedures for assuring compliance with applicable laws and regulations. Each Board also considered the operation of BlackRock’s business continuity plans.

B. The Investment Performance of the Funds

Each Board, including the Independent Board Members, reviewed and considered the performance history of each Fund throughout the year and at the April Meeting. Each Board was provided with Fund performance reporting and analysis, relative to applicable performance metrics, by BlackRock throughout the year and at the April meeting. In preparation for the April Meeting, the Boards were also provided with reports independently prepared by Broadridge, which included an analysis of each Fund’s performance as of December 31, 2024, as compared to its Performance Peers. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, with respect to each Fund, the applicable Board received and reviewed information regarding the investment performance of the Fund as compared to its Performance Peers. Each Board and its Performance Oversight Committee regularly review and meet with Fund management to discuss the performance of each Fund throughout the year.

In evaluating performance, the Boards focused particular attention on funds with less favorable performance records. The Board also noted that while it found the data provided by Broadridge generally useful, it recognized the limitations of such data, including in particular, that notable differences may exist between a fund and its Performance Peers (for example, the investment objectives and strategies). Further, the Boards recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce significantly different results. The Board also acknowledged that long-term performance could be impacted by even one period of significant outperformance or underperformance, and that a single investment theme could have the ability to disproportionately affect long-term performance.

The Board of the Trust noted that for each of the one-, three- and five-year periods reported, Advantage International Fund ranked in the first quartile against its Performance Peers.

The Board of the Corporation noted that for the one-, three- and five-year periods reported, Advantage Large Cap Core Fund ranked in the first, second and second quartiles, respectively, against its Performance Peers.

The Board of the Trust noted that for each of the one-, three- and five-year periods reported, Advantage Large Cap Growth Fund ranked in the second quartile against its Performance Peers.

 

 

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Disclosure of Investment Advisory Agreements (continued)

 

The Board of the Corporation noted that for the one-, three- and five-year periods reported, Advantage Large Cap Value Fund ranked in the second, third and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable period.

The Board of the Trust noted that for the one-, three- and five-year periods reported, Advantage Small Cap Core Fund ranked in the second, third and third quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Fund’s underperformance relative to its Performance Peers during the applicable periods.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with the Funds

Each Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. Each Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non-12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers, and the actual management fee rate gives effect to any management fee reimbursements or waivers. The Boards considered that the fee and expense information in the Broadridge report for the Fund reflected information for a specific period and that historical asset levels and expenses may differ from current levels, particularly in a period of market volatility. The Board also noted that while it found the expense comparison provided by Broadridge generally useful, it recognized that the comparison is subject to Broadridge’s defined peer selection criteria and methodology. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Boards reviewed BlackRock’s profitability methodology and were also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Boards reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Boards currently oversee for the year ended December 31, 2024 compared to available aggregate estimated profitability data provided for the prior two years. The Boards reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Boards reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Boards recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Boards thus recognized the limitations of calculating and comparing profitability at the individual fund level.

The Boards received and reviewed statements relating to BlackRock’s financial condition. The Boards reviewed BlackRock’s overall operating margin, in general, compared to that of certain other publicly traded asset management firms. The Boards considered the differences between BlackRock and these other firms, including the contribution of BlackRock’s technology business, BlackRock’s expense management, and the relative product mix. The Boards noted that, in general, individual fund or product line profitability of other advisors is not publicly available.

Each Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreements and to continue to provide the high quality of services that is expected by the Board. The Boards further considered factors including but not limited to BlackRock’s commitment of time and resources, assumption of risk, and liability profile in servicing the Funds, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The applicable Board noted that each of Advantage International Fund’s, Advantage Small Cap Core Fund’s and Advantage Large Cap Core Fund’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Fund’s Expense Peers.

The Board of the Trust noted that Advantage Large Cap Growth Fund’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and first quartiles, respectively, relative to the Fund’s Expense Peers.

The Board of the Corporation noted that Advantage Large Cap Value Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile relative to the Fund’s Expense Peers.

The Boards also noted that each Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the pertinent Fund increases above certain contractually specified levels. The Boards additionally noted that the breakpoints can, conversely, adjust the advisory fee rate upward as the size of the pertinent Fund decreases below certain contractually specified levels. The Boards further noted that BlackRock and the applicable Board have contractually agreed to a cap on each Fund’s total expenses as a percentage of the Fund’s average daily net assets on a class-by-class basis.

D. Economies of Scale

Each Board, including the Independent Board Members, considered the extent to which any economies of scale might benefit the Funds in a variety of ways as the assets of the Funds increase. Each Board considered multiple factors, including the advisory fee rate and breakpoints, unitary fee structure, fee waivers, and/or expense caps, as applicable. Each Board considered each Fund’s asset levels and whether the current fee schedule was appropriate.

E. Other Factors Deemed Relevant by the Board Members

Each Board, including the Independent Board Members, also took into account other ancillary or “fall-out” benefits that BlackRock or its affiliates may derive from BlackRock’s respective relationships with the applicable Fund, both tangible and intangible, such as BlackRock’s ability to leverage its investment professionals who manage other portfolios and its risk management personnel, an increase in BlackRock’s profile in the investment advisory community, and the engagement of BlackRock’s affiliates as service providers to the Funds, including for administrative, distribution, securities lending and cash management services. With respect to securities lending, during the year the Board also considered information provided by independent third-party consultants related to the performance of each BlackRock affiliate as securities lending agent. The

 

 

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Disclosure of Investment Advisory Agreements (continued)

 

Board also considered BlackRock’s overall operations and its efforts to expand the scale of, and improve the quality of, its operations. The Board also noted that, subject to applicable law, BlackRock may use and benefit from third-party research obtained by soft dollars generated by certain registered fund transactions to assist in managing all or a number of its other client accounts.

In connection with its consideration of the pertinent Agreements, the Boards also received information regarding BlackRock’s brokerage and soft dollar practices. The Boards received reports from BlackRock which included information on brokerage commissions and trade execution practices throughout the year.

The Boards noted the competitive nature of the mutual fund marketplace, and that shareholders are able to redeem their Fund shares if they believe that the pertinent Fund’s fees and expenses are too high or if they are dissatisfied with the performance of the Fund.

Conclusion

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board of the Trust’s year-long deliberative process, the Board of the Trust, including the Independent Board Members, unanimously approved the continuation of the Trust Advisory Agreement between the Manager and the Trust, on behalf of each of Advantage International Fund, Advantage Large Cap Growth Fund and Advantage Small Cap Core Fund, for a one-year term ending June 30, 2026.

At the May Meeting, in a continuation of the discussions that occurred during the April Meeting, and as a culmination of the Board of the Corporation’s year-long deliberative process, the Board of the Corporation, including the Independent Board Members, unanimously approved the continuation of the Corporation Advisory Agreement between the Manager and the Corporation, on behalf of each of Advantage Large Cap Value Fund and Advantage Large Cap Core Fund, for a one-year term ending June 30, 2026.

Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Boards, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Boards did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were advised by independent legal counsel throughout the deliberative process.

 

 

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Additional Information

 

Changes in and Disagreements with Accountants

Not applicable.

Proxy Results

Not applicable.

Remuneration Paid to Directors, Officers, and Others

Compensation to the independent directors/trustees of the Corporation/Trust is paid by the Corporation/Trust, on behalf of the Funds.

General Information

Quarterly performance, shareholder reports, semi-annual and annual financial statements, current net asset value and other information regarding the Funds may be found on BlackRock’s website, which can be accessed at blackrock.com. Any reference to BlackRock’s website in this report is intended to allow investors public access to information regarding the Funds and does not, and is not intended to, incorporate BlackRock’s website in this report.

Electronic Delivery

Shareholders can sign up for e-mail notifications of quarterly statements, annual and semi-annual shareholder reports and prospectuses by enrolling in the electronic delivery program.

To enroll in electronic delivery:

Shareholders Who Hold Accounts with Investment Advisors, Banks or Brokerages:

Please contact your financial advisor. Please note that not all investment advisors, banks or brokerages may offer this service.

Shareholders Who Hold Accounts Directly with BlackRock:

1. Access the BlackRock website at blackrock.com

2. Select “Access Your Account”

3. Next, select “eDelivery” in the “Related Resources” box and follow the sign-up instructions.

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

Call us at (800) 441-7762 from 8:00 AM to 6:00 PM ET on any business day to get information about your account balances, recent transactions and share prices. You can also visit blackrock.com for more information.

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

 

 

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Additional Information (continued)

 

Fund and Service Providers

 

Investment Adviser and Administrator   Independent Registered Public Accounting Firm
BlackRock Advisors, LLC   Deloitte & Touche LLP
Wilmington, DE 19809   Boston, MA 02110
Accounting Agent and Transfer Agent   Distributor
BNY Mellon Investment Servicing (US) Inc.   BlackRock Investments, LLC
Wilmington, DE 19809   New York, NY 10001
Custodian   Legal Counsel
The Bank of New York Mellon   Sidley Austin LLP
New York, NY 10286   New York, NY 10019
  Address of the Trust and the Corporation
  100 Bellevue Parkway
  Wilmington, DE 19809

 

 

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Glossary of Terms Used in these Financial Statements

 

Portfolio Abbreviation

 

CVR    Contingent Value Rights
LP    Limited Partnership
NVS    Non-Voting Shares
REIT    Real Estate Investment Trust

 

 

 

 

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Want to know more?

blackrock.com | 800-441-7762

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

 

 

 

LOGO

   LOGO

Item 8 –

Changes in and Disagreements with Accountants for Open-End Management Investment Companies – See Item 7

 

Item 9 –

Proxy Disclosures for Open-End Management Investment Companies – See Item 7

 

Item 10 –

Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies – See Item 7

 

Item 11 –

Statement Regarding Basis for Approval of Investment Advisory Contract – See Item 7

 

Item 12 –

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

 

Item 13 –

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

 

5

Item 14 –

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

 

Item 15 –

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

 

Item 16 –

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 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended.

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

 

Item 17 –

Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable

 

Item 18 –

Recovery of Erroneously Awarded Compensation – Not Applicable

 

Item 19 –

Exhibits attached hereto

(a)(1) Code of Ethics – See Item 2

(a)(2) Any policy required by the listing standards adopted pursuant to Rule 10D-1 under the Exchange Act (17 CFR 240.10D-1) by the registered national securities exchange or registered national securities association upon which the registrant’s securities are listed – Not Applicable

(a)(3) Section 302 Certifications are attached.

(a)(4) Any written solicitation to purchase securities under Rule 23c-1 – Not Applicable

(a)(5) Change in Registrant’s independent public accountant – Not Applicable

(b) Section 906 Certifications are attached.

 

 

6

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 FundsSM

 

 

 By:

     

/s/ John M. Perlowski       

      

John M. Perlowski

      

Chief Executive Officer (principal executive officer) of

      

BlackRock FundsSM

Date: July 22, 2025

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 FundsSM

Date: July 22, 2025

 

 

 By:

     

/s/ Trent Walker       

      

Trent Walker

      

Chief Financial Officer (principal financial officer) of

      

BlackRock FundsSM

Date: July 22, 2025

 

 

7