N-CSR 1 d583184dncsr.htm BLACKROCK FUNDS III BlackRock Funds III

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: 811-07332

 

Name of Fund:   BlackRock Funds III
       BlackRock Diversified Fixed Income Fund
       BlackRock LifePath® ESG Index 2025 Fund
       BlackRock LifePath® ESG Index 2030 Fund
       BlackRock LifePath® ESG Index 2035 Fund
       BlackRock LifePath® ESG Index 2040 Fund
       BlackRock LifePath® ESG Index 2045 Fund
       BlackRock LifePath® ESG Index 2050 Fund
       BlackRock LifePath® ESG Index 2055 Fund
       BlackRock LifePath® ESG Index 2060 Fund
       BlackRock LifePath® ESG Index 2065 Fund
       BlackRock LifePath® ESG Index Retirement Fund

 

Fund Address:   100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds III, 50 Hudson Yards, New York, NY 10001

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

Date of fiscal year end: 10/31/2023

Date of reporting period: 10/31/2023

 


Item 1 – Report to Stockholders

(a) The Report to Shareholders is attached herewith.

 


 

LOGO

  OCTOBER 31, 2023

 

  

2023 Annual Report

 

 

 

BlackRock Funds III

·  BlackRock LifePath® ESG Index Retirement Fund

·  BlackRock LifePath® ESG Index 2025 Fund

·  BlackRock LifePath® ESG Index 2030 Fund

·  BlackRock LifePath® ESG Index 2035 Fund

·  BlackRock LifePath® ESG Index 2040 Fund

·  BlackRock LifePath® ESG Index 2045 Fund

·  BlackRock LifePath® ESG Index 2050 Fund

·  BlackRock LifePath® ESG Index 2055 Fund

·  BlackRock LifePath® ESG Index 2060 Fund

·  BlackRock LifePath® ESG Index 2065 Fund

 

 

 

 

Not FDIC Insured • May Lose Value • No Bank Guarantee


The Markets in Review

Dear Shareholder,

The combination of continued economic growth and cooling inflation provided a supportive backdrop for investors during the 12-month reporting period ended October 31, 2023. Significantly tighter monetary policy helped to rein in inflation, as the annual increase in the Consumer Price Index declined to its long-term average of approximately 3% in October 2023. Meanwhile, real economic growth proved more resilient than many investors anticipated. A moderating labor market also helped ease inflationary pressure, although wages continued to grow and unemployment rates touched the lowest levels in decades before rising slightly. This robust labor market powered further growth in consumer spending, backstopping the economy. On October 7, 2023, Hamas launched a horrific attack on Israel. The ensuing war will have a significant humanitarian impact and could lead to heightened economic and market volatility. We see geopolitics as a structural market risk going forward. See our geopolitical risk dashboard at blackrock.com for more details.

Equity returns were solid during the period, as the durability of consumer spending mitigated investors’ concerns about the economy’s trajectory. The U.S. economy continued to show strength, and growth further accelerated in the third quarter of 2023. However, equity returns were uneven, as the performance of a few notable technology companies supported gains among large-capitalization U.S. stocks, while small-capitalization U.S. stocks declined overall. Meanwhile, international developed market equities advanced, and emerging market equities posted solid gains.

The 10-year U.S. Treasury yield rose during the reporting period, driving its price down, as investors reacted to elevated inflation and attempted to anticipate future interest rate changes. The corporate bond market benefited from improving economic sentiment, although high-yield corporate bond prices fared significantly better than investment-grade bonds as demand from yield-seeking investors remained strong.

The U.S. Federal Reserve (the “Fed”), attempting to manage persistent inflation, raised interest rates six times during the 12-month period, but slowed and then paused its tightening later in the period. The Fed also wound down its bond-buying programs and incrementally reduced its balance sheet by not replacing securities that reach maturity.

Supply constraints appear to have become an embedded feature of the new macroeconomic environment, making it difficult for developed economies to increase production without sparking higher inflation. Geopolitical fragmentation and an aging population risk further exacerbating these constraints, keeping the labor market tight and wage growth high. Although the Fed has decelerated the pace of interest rate hikes and recently opted for several pauses, we believe that the new economic regime means that the Fed will need to maintain high rates for an extended period to keep inflation under control. Furthermore, ongoing structural changes may mean that the Fed will be hesitant to cut interest rates in the event of faltering economic activity lest inflation accelerate again.

While we favor an overweight position in developed market equities in the long term, we prefer an underweight stance in the near term. Expectations for corporate earnings remain elevated, which seems inconsistent with macroeconomic constraints. Nevertheless, we are overweight on Japanese stocks in the near term as shareholder-friendly policies generate increased investor interest. We also believe that stocks with an AI tilt should benefit from an investment cycle that is set to support revenues and margins. In credit, there are selective opportunities in the near term despite tightening credit and financial conditions. For fixed income investing with a six- to twelve-month horizon, we see the most attractive investments in short-term U.S. Treasuries, U.S. inflation-linked bonds, euro area government bonds and gilts, U.S. mortgage-backed securities, and hard-currency emerging market bonds.

Overall, our view is that investors need to think globally, position themselves to be prepared for a decarbonizing economy, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

 

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

LOGO

Rob Kapito

President, BlackRock Advisors, LLC

 

Total Returns as of October 31, 2023  
 
     6-Month   12-Month  
 

U.S. large cap equities (S&P 500® Index)

    1.39%       10.14%  
 

U.S. small cap equities (Russell 2000® Index)

    (5.29)         (8.56)    
 

International equities (MSCI Europe, Australasia, Far East Index)

    (7.88)         14.40     
 

Emerging market equities (MSCI Emerging Markets Index)

    (4.78)         10.80     
 

3-month Treasury bills (ICE BofA 3-Month U.S. Treasury Bill Index)

    2.63          4.77     
 

U.S. Treasury securities (ICE BofA 10-Year U.S. Treasury Index)

    (9.70)         (3.25)    
 

U.S. investment grade bonds
(Bloomberg U.S. Aggregate Bond Index)

    (6.13)         0.36     
 

Tax-exempt municipal bonds
(Bloomberg Municipal Bond Index)

    (4.65)         2.64     
 

U.S. high yield bonds (Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index)

    0.02          6.23     
Past performance is not an indication of future results. Index performance is shown for illustrative purposes only. You cannot invest directly in an index.

 

 

 

 

2  

T H I S   P A G E   I S   N O T   P A R T   O F   Y O U R   F U N D   R E P O R T


Table of Contents

 

      Page

The Markets in Review

   2

Annual Report:

  

Fund Summary

   4

About Fund Performance

   25

Disclosure of Expenses

   26

Financial Statements:

  

Schedules of Investments

   27

Statements of Assets and Liabilities

   47

Statements of Operations

   50

Statements of Changes in Net Assets

   53

Financial Highlights

   58

Notes to Financial Statements

   88

Report of Independent Registered Public Accounting Firm

   101

Important Tax Information

   102

Disclosure of Investment Advisory Agreement

   104

Trustee and Officer Information

   108

Additional Information

   112

Glossary of Terms Used in this Report

   114

 

 

 

LOGO

 

 

  3


Fund Summary    as of October  31, 2023    LifePath ESG Index Funds

 

Portfolio Management Commentary

How did each Fund perform?

For the 12-month period ended October 31, 2023, the LifePath® ESG Index Funds (as defined below) across the vintages 2025, 2030, 2035, 2045, 2050, 2055, 2060 and 2065, Institutional and Class K Shares outperformed their respective custom benchmark, while Investor A Shares underperformed.

For the LifePath® ESG Index Funds with the vintage of Retirement, Institutional and Class K Shares outperformed its custom benchmark while Investor A Shares performed in line.

For the LifePath® ESG Index Funds with the vintage of 2040, all of the Fund’s share classes outperformed its custom benchmark.

What factors influenced performance?

Across the portfolios, positive contributions were led by iShares Emerging Markets Small Cap ETF, iShares ESG Aware MSCI EAFE ETF, and iShares ESG Aware MSCI EM ETF.

The weakest performers across the portfolios were iShares ESG Aware MSCI US Small Cap ETF, iShares Developed Real Estate Index Fund, and iShares MSCI Canada ETF.

Describe recent portfolio activity.

Each LifePath® ESG Index Fund has its own time horizon, which affects its acceptable level of risk and, in turn, the strategic allocation of its holdings across asset classes. On a quarterly basis, the strategic allocation of each LifePath® ESG Index Fund is systematically adjusted to reflect the shareholders’ remaining investment time horizon. During the period, the LifePath® ESG Index Funds were rebalanced in accordance with their updated strategic allocations. Daily cash flows were allocated to the underlying funds and instruments as appropriate.

Describe portfolio positioning at period end.

At period end, each of the LifePath® ESG Index Funds was invested according to its respective strategic allocation benchmark within tolerance limits.

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.

Glide Path Evolution

The BlackRock LifePath® ESG Index Retirement Fund along with the BlackRock LifePath® ESG Index Funds with target dates of 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060 and 2065 are referred to collectively as the “LifePath® ESG Index Funds”. Under normal circumstances, the asset allocation of each LifePath ESG Index Fund will change over time according to a predetermined “glide path” as each LifePath ESG Index Fund approaches its respective target date. The glide path represents the shifting of asset classes over time. Each LifePath ESG Index Fund’s asset allocations become more conservative prior to retirement as time elapses. This reflects the need for reduced investment risks as retirement approaches and the need for lower volatility of each LifePath ESG Index Fund, which may be a primary source of income after retirement. As each LifePath ESG Index Fund approaches its target date, its asset allocation will shift so that each LifePath ESG Index Fund invests a greater percentage of its assets in fixed-income index funds. The asset allocation targets are established by the portfolio managers. The investment team, including the portfolio managers, meets regularly to assess market conditions, review the asset allocation targets of each LifePath ESG Index Fund, and determine whether any changes are required to enable each LifePath ESG Index Fund to achieve its investment objective. Because the BlackRock LifePath® ESG Index Retirement Fund is in its most conservative phase, its allocation generally does not become more conservative over time, although its allocation may change to maintain its risk profile.

Although the asset allocation targets listed for the glide path are general, long-term targets, BlackRock Fund Advisors (“BFA” or the “Manager”) may periodically adjust the proportion of equity index funds and fixed-income index funds in each LifePath ESG Index Fund, based on an assessment of the current market conditions, the potential contribution of each asset class to the expected risk and return characteristics of each LifePath ESG Index Fund, reallocations of each LifePath ESG Index Fund’s composition to reflect intra-year movement along the glide path and other factors. In general, such adjustments will be limited; however, BFA may determine that a greater degree of variation is warranted to protect a LifePath ESG Index Fund or achieve its investment objective.

 

 

 

4  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index Retirement Fund

 

Investment Objective

BlackRock LifePath® ESG Index Retirement Fund’s (“LifePath ESG Index Retirement Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index Retirement Fund will be broadly diversified across global asset classes.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index Retirement Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index Retirement Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    52.0     8.0     2.2     0.3     11.6     1.4     0.1     0.4     20.1     3.9  
 

11/01/20 to 10/31/21

    52.0       8.0       2.2       0.3       11.3       1.5       0.6       0.5       19.1       4.5    
 

11/01/21 to 10/31/22

    52.0       8.0       2.2       1.5       10.3       1.5       1.0       0.6       18.4       4.5    
 

11/01/22 to 10/31/23

    52.0       8.0       2.2       1.0       8.1       1.2       2.4       0.5       20.7       3.9    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  5


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index Retirement Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    3.78     (0.89 )% 

Investor A

    3.50       (1.12

Class K

    3.84       (0.84

LifePath® ESG Retirement Fund Custom Benchmark

    3.54       (0.82

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index Retirement Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors who are currently withdrawing, or plan in the near future to begin withdrawing, a substantial portion of their investment.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Fixed-Income Funds

    60.4%  

Equity Funds

    40.0     

Money Market Funds

    9.6     

Liabilities in Excess of Other Assets

    (10.0)    

 

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware U.S. Aggregate Bond ETF

    52.3%  

iShares ESG Aware MSCI USA ETF

    21.9     

BlackRock Cash Funds: Institutional, SL Agency Shares

    9.4     

iShares TIPS Bond ETF

    8.1     

iShares ESG Aware MSCI EAFE ETF

    7.1     

iShares ESG Aware MSCI USA Small-Cap ETF

    3.4     

iShares ESG Aware MSCI EM ETF

    3.0     

iShares Developed Real Estate Index Fund, Class K

    2.2     

iShares MSCI EAFE Small-Cap ETF

    1.1     

iShares MSCI Canada ETF

    0.8     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

6  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2025 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2025 Fund’s (“LifePath ESG Index 2025 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2025 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2025 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2025 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    40.8     7.3     2.4     1.2     14     1.9     2.1     0.5     24.9     4.9  
 

11/01/20 to 10/31/21

    42.6       7.4       2.3       1.0       13.3       2.0       2.0       0.7       23.6       5.1    
 

11/01/21 to 10/31/22

    45.8       7.6       2.1       1.5       12.0       1.8       1.5       0.7       22.1       4.9    
 

11/01/22 to 10/31/23

    47.5       7.8       2.2       1.1       9.3       1.4       2.8       0.6       23.3       4.0    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  7


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2025 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    4.16     0.09

Investor A

    3.98       (0.13

Class K

    4.33       0.14  

LifePath® ESG Index 2025 Fund Custom Benchmark

    4.10       0.22  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2025 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2025.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Fixed-Income Funds

    56.7%  

Equity Funds

    43.7     

Money Market Funds

    0.2     

Liabilities in Excess of Other Assets

    (0.6)    

 

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware U.S. Aggregate Bond ETF

    48.8%  

iShares ESG Aware MSCI USA ETF

    23.9     

iShares ESG Aware MSCI EAFE ETF

    7.9     

iShares TIPS Bond ETF

    7.9     

iShares ESG Aware MSCI USA Small-Cap ETF

    3.5     

iShares ESG Aware MSCI EM ETF

    3.4     

iShares Developed Real Estate Index Fund, Class K

    2.1     

iShares MSCI EAFE Small-Cap ETF

    1.3     

iShares MSCI Canada ETF

    1.0     

iShares MSCI Emerging Markets Small-Cap ETF

    0.6     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

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2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2030 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2030 Fund’s (“LifePath ESG Index 2030 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2030 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2030 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2030 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    29.9     6.2     3.0     2.0     17.5     2.5     2.6     0.7     29.9     5.7  
 

11/01/20 to 10/31/21

    31.5       6.4       2.9       1.8       16.6       2.5       2.5       0.9       29.1       5.8    
 

11/01/21 to 10/31/22

    34.1       6.7       2.8       1.5       15.2       2.3       2.2       0.9       28.9       5.4    
 

11/01/22 to 10/31/23

    35.9       6.8       2.7       1.3       12.3       1.9       3.7       0.8       30.3       4.3    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  9


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2030 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    5.48     1.38

Investor A

    5.16       1.12  

Class K

    5.55       1.44  

LifePath® ESG Index 2030 Fund Custom Benchmark

    5.22       1.49  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2030 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2030.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    56.3%  

Fixed-Income Funds

    43.8     

Money Market Funds

    1.0     

Liabilities in Excess of Other Assets

    (1.1)    

 

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware U.S. Aggregate Bond ETF

    36.8%  

iShares ESG Aware MSCI USA ETF

    31.0     

iShares ESG Aware MSCI EAFE ETF

    10.6     

iShares TIPS Bond ETF

    7.0     

iShares ESG Aware MSCI EM ETF

    4.6     

iShares ESG Aware MSCI USA Small-Cap ETF

    3.8     

iShares Developed Real Estate Index Fund, Class K

    2.6     

iShares MSCI EAFE Small-Cap ETF

    1.7     

iShares MSCI Canada ETF

    1.2     

BlackRock Cash Funds: Institutional, SL Agency Shares

    0.8     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2035 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2035 Fund’s (“LifePath ESG Index 2035 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2035 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2035 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2035 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    19.6     4.9     3.6     3.0     20.9     3.1     3.3     0.9     34.6     6.1  
 

11/01/20 to 10/31/21

    21.2       5.1       3.5       2.7       19.9       3.1       3.0       1.1       34.5       5.9    
 

11/01/21 to 10/31/22

    23.9       5.5       3.4       1.7       18.1       2.7       2.9       1.1       35.0       5.7    
 

11/01/22 to 10/31/23

    25.4       5.7       3.3       1.6       15.0       2.3       4.5       0.9       36.7       4.6    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  11


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2035 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    6.32     2.59

Investor A

    6.16       2.35  

Class K

    6.36       2.64  

LifePath® ESG Index 2035 Fund Custom Benchmark

    6.24       2.65  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2035 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2035.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    68.2%  

Fixed-Income Funds

    32.1     

Money Market Funds

    26.5     

Liabilities in Excess of Other Assets

    (26.8)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    37.5%  

iShares ESG Aware U.S. Aggregate Bond ETF

    26.3     

BlackRock Cash Funds: Institutional, SL Agency Shares

    26.2     

iShares ESG Aware MSCI EAFE ETF

    13.2     

iShares TIPS Bond ETF

    5.8     

iShares ESG Aware MSCI EM ETF

    5.7     

iShares ESG Aware MSCI USA Small-Cap ETF

    4.1     

iShares Developed Real Estate Index Fund, Class K

    3.2     

iShares MSCI EAFE Small-Cap ETF

    2.1     

iShares MSCI Canada ETF

    1.5     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

12  

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2040 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2040 Fund’s (“LifePath ESG Index 2040 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2040 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2040 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2040 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    10.8     3.2     4.2     3.9     23.9     3.6     3.9     1.0     39.1     6.4  
 

11/01/20 to 10/31/21

    12.2       3.5       4.1       3.5       23.0       3.6       3.4       1.2       39.4       6.1    
 

11/01/21 to 10/31/22

    14.4       4.0       3.9       1.9       20.8       3.1       3.5       1.2       41.3       5.9    
 

11/01/22 to 10/31/23

    15.7       4.2       3.8       1.9       17.6       2.7       5.3       1.1       42.9       4.8    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  13


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2040 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    8.15     3.84

Investor A

    7.78       3.56  

Class K

    8.22       3.90  

LifePath® ESG Index 2040 Fund Custom Benchmark

    7.22       3.68  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2040 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2040.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    79.3%  

Fixed-Income Funds

    20.7     

Money Market Funds

    2.5     

Liabilities in Excess of Other Assets

    (2.5)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    43.8%  

iShares ESG Aware U.S. Aggregate Bond ETF

    16.4     

iShares ESG Aware MSCI EAFE ETF

    15.3     

iShares ESG Aware MSCI EM ETF

    6.7     

iShares TIPS Bond ETF

    4.3     

iShares ESG Aware MSCI USA Small-Cap ETF

    4.4     

iShares Developed Real Estate Index Fund, Class K

    3.7     

iShares MSCI EAFE Small-Cap ETF

    2.5     

BlackRock Cash Funds: Institutional, SL Agency Shares

    2.3     

iShares MSCI Canada ETF

    1.8     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2045 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2045 Fund’s (“LifePath ESG Index 2045 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2045 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2045 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2045 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    4.2     1.6     4.5     4.6     26.3     4.0     4.4     1.1     42.7     6.6  
 

11/01/20 to 10/31/21

    5.0       1.9       4.5       4.2       25.5       4.0       3.7       1.4       43.6       6.2    
 

11/01/21 to 10/31/22

    6.5       2.3       4.4       2.0       23.3       3.5       4.1       1.4       46.4       6.1    
 

11/01/22 to 10/31/23

    7.4       2.5       4.3       2.1       20.0       3.0       6.0       1.3       48.4       5.0    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  15


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2045 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    8.29     4.50

Investor A

    8.03       4.26  

Class K

    8.34       4.55  

LifePath® ESG Index 2045 Fund Custom Benchmark

    8.09       4.51  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2045 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2045.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    89.7%  

Fixed-Income Funds

    10.5     

Money Market Funds

    1.8     

Liabilities in Excess of Other Assets

    (2.0)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    49.5%  

iShares ESG Aware MSCI EAFE ETF

    17.5     

iShares ESG Aware U.S. Aggregate Bond ETF

    7.9     

iShares ESG Aware MSCI EM ETF

    7.8     

iShares ESG Aware MSCI USA Small-Cap ETF

    4.5     

iShares Developed Real Estate Index Fund, Class K

    4.1     

iShares MSCI EAFE Small-Cap ETF

    2.9     

iShares TIPS Bond ETF

    2.6     

iShares MSCI Canada ETF

    2.1     

BlackRock Cash Funds: Institutional, SL Agency Shares

    1.6     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

16  

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2050 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2050 Fund’s (“LifePath ESG Index 2050 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2050 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2050 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2050 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    1.3     0.5     4.8     4.9     27.5     4.2     4.6     1.2     44.3     6.7  
 

11/01/20 to 10/31/21

    1.5       0.6       4.7       4.7       26.8       4.3       3.9       1.5       45.7       6.3    
 

11/01/21 to 10/31/22

    2.0       0.8       4.7       2.2       24.7       3.8       4.4       1.5       49.7       6.2    
 

11/01/22 to 10/31/23

    2.5       1.0       4.5       2.3       21.5       3.3       6.5       1.4       51.8       5.2    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  17


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2050 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    8.84     4.91

Investor A

    8.42       4.62  

Class K

    8.89       4.96  

LifePath® ESG Index 2050 Fund Custom Benchmark

    8.65       4.96  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2050 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2050.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    96.3%  

Fixed-Income Funds

    3.8     

Money Market Funds

    2.2     

Liabilities in Excess of Other Assets

    (2.3)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    53.2%  

iShares ESG Aware MSCI EAFE ETF

    19.0     

iShares ESG Aware MSCI EM ETF

    8.3     

iShares ESG Aware MSCI USA Small-Cap ETF

    4.9     

iShares Developed Real Estate Index Fund, Class K

    4.2     

iShares MSCI EAFE Small-Cap ETF

    3.1     

iShares ESG Aware U.S. Aggregate Bond ETF

    2.7     

iShares MSCI Canada ETF

    2.2     

BlackRock Cash Funds: Institutional, SL Agency Shares

    1.9     

iShares MSCI Emerging Markets Small-Cap ETF

    1.4     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2055 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2055 Fund’s (“LifePath ESG Index 2055 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2055 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2055 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2055 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    0.8     0.2     4.8     5.0     27.7     4.2     4.7     1.2     44.6     6.8  
 

11/01/20 to 10/31/21

    0.8       0.2       4.8       4.8       27.1       4.3       4.0       1.5       46.2       6.3    
 

11/01/21 to 10/31/22

    0.8       0.2       4.8       2.2       25.2       3.8       4.5       1.5       50.7       6.3    
 

11/01/22 to 10/31/23

    0.7       0.3       4.5       2.3       22.1       3.4       6.7       1.4       53.4       5.2    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  19


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2055 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    8.91     5.00

Investor A

    8.76       4.76  

Class K

    8.97       5.05  

LifePath® ESG Index 2055 Fund Custom Benchmark

    8.84       5.06  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2055 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2055.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    99.2%  

Money Market Funds

    10.3     

Fixed-Income Funds

    1.1     

Liabilities in Excess of Other Assets

    (10.6)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    54.8%  

iShares ESG Aware MSCI EAFE ETF

    19.7     

BlackRock Cash Funds: Institutional, SL Agency Shares

    10.0     

iShares ESG Aware MSCI EM ETF

    8.6     

iShares ESG Aware MSCI USA Small-Cap ETF

    4.9     

iShares Developed Real Estate Index Fund, Class K

    4.2     

iShares MSCI EAFE Small-Cap ETF

    3.2     

iShares MSCI Canada ETF

    2.3     

iShares MSCI Emerging Markets Small-Cap ETF

    1.5     

iShares ESG Aware U.S. Aggregate Bond ETF

    0.8     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2060 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2060 Fund’s (“LifePath ESG Index 2060 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2060 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2060 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2060 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    0.9     0.1     4.8     5.0     27.7     4.2     4.7     1.2     44.6     6.8  
 

11/01/20 to 10/31/21

    0.9       0.1       4.8       4.8       27.1       4.3       4.0       1.5       46.2       6.3    
 

11/01/21 to 10/31/22

    0.9       0.1       4.8       2.2       25.2       3.8       4.5       1.5       50.7       6.3    
 

11/01/22 to 10/31/23

    0.9       0.1       4.5       2.3       22.1       3.4       6.7       1.4       53.4       5.2    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  21


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2060 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    8.96     5.00

Investor A

    8.68       4.73  

Class K

    9.01       5.04  

LifePath® ESG Index 2060 Fund Custom Benchmark

    8.84       5.05  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2060 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2060.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    98.9%  

Money Market Funds

    1.4     

Fixed-Income Funds

    1.0     

Liabilities in Excess of Other Assets

    (1.3)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    54.6%  

iShares ESG Aware MSCI EAFE ETF

    19.5     

iShares ESG Aware MSCI EM ETF

    8.5     

iShares ESG Aware MSCI USA Small-Cap ETF

    5.1     

iShares Developed Real Estate Index Fund, Class K

    4.3     

iShares MSCI EAFE Small-Cap ETF

    3.2     

iShares MSCI Canada ETF

    2.3     

iShares MSCI Emerging Markets Small-Cap ETF

    1.4     

BlackRock Cash Funds: Treasury, SL Agency Shares

    1.4     

iShares ESG Aware U.S. Aggregate Bond ETF

    0.9     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

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Fund Summary    as of October 31, 2023    BlackRock LifePath® ESG Index 2065 Fund

 

Investment Objective

BlackRock LifePath® ESG Index 2065 Fund’s (“LifePath ESG Index 2065 Fund” or the “LifePath ESG Index Fund”) investment objective is to seek to provide for retirement outcomes based on quantitatively measured risk. In pursuit of this objective, LifePath ESG Index 2065 Fund will be broadly diversified across global asset classes, with asset allocations becoming more conservative over time.

GROWTH OF $10,000 INVESTMENT

 

LOGO

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

  (a) 

The LifePath ESG Index Fund compares its performance to that of a customized weighted index (the “LifePath ESG Index 2065 Fund Custom Benchmark”) comprised of the indexes indicated below, which reflects the investment adviser’s changes to the benchmark’s weightings over time. The investment adviser adjusts the weightings of these indexes periodically based upon its evaluation and adjustment of the LifePath ESG Index Fund’s asset allocation strategy. The weightings are presented annually but they are adjusted quarterly.

 

The LifePath ESG Index 2065 Fund’s custom benchmark consists of the following:

 

           Period(a)  

Bloomberg
MSCI

U.S. Aggregate
ESG Focus
Index

    Bloomberg
U.S.Treasury
Inflation
Protected
Securities
(TIPS) Index
(Series-L)
    FTSE EPRA
Nareit
Developed
Index
    MSCI
Canada
Custom
Capped
Index
    MSCI EAFE
Extended
ESG
Focus Index
    MSCI
EAFE
Small
Cap
Index
   

MSCI
Emerging
Markets

Extended
ESG Focus
Index

   

MSCI
Emerging

Markets

Small
Cap Index

    MSCI USA
Extended
ESG Focus
Index
    MSCI USA
Small Cap
Extended
ESG
Focus Index
            
 

08/18/20 to 10/31/20

    1.0     0.0     4.8     5.0     27.7     4.2     4.7     1.2     44.6     6.8  
 

11/01/20 to 10/31/21

    1.0       0.0       4.8       4.8       27.1       4.3       4.0       1.5       46.2       6.3    
 

11/01/21 to 10/31/22

    1.0       0.0       4.8       2.2       25.2       3.8       4.5       1.5       50.7       6.3    
 

11/01/22 to 10/31/23

    1.0       0.1       4.5       2.3       22.1       3.4       6.7       1.4       53.3       5.2    

 

  (a) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

See “About Fund Performance” for descriptions of the indexes.

 

 

F U N D   S U M M A R Y

  23


Fund Summary    as of October 31, 2023 (continued)    BlackRock LifePath® ESG Index 2065 Fund

 

Performance

 

    Average Annual Total Returns(a)(b)  
 

 

 

 
          Since  
      1 Year       Inception (c) 

Institutional

    9.03     5.04

Investor A

    8.71       4.78  

Class K

    9.08       5.09  

LifePath® ESG Index 2065 Fund Custom Benchmark

    8.84       5.05  

Bloomberg MSCI U.S. Aggregate ESG Focus Index

    0.38       (5.41

Bloomberg U.S. TIPS Index (Series-L)

    (0.72     (1.93

FTSE EPRA Nareit Developed Index

    (6.03     (1.59

MSCI Canada Custom Capped Index

    (1.24     5.50  

MSCI EAFE Extended ESG Focus Index

    14.40       3.24  

MSCI EAFE Small Cap Index

    6.47       (0.64

MSCI Emerging Markets Extended ESG Focus Index

    10.98       (3.75

MSCI Emerging Markets Small Cap Index

    17.20       8.28  

MSCI USA Extended ESG Focus Index

    8.86       7.31  

MSCI USA Small Cap Extended ESG Focus Index

    (5.30     6.00  

 

  (a) 

See “About Fund Performance” for a detailed description of share classes, including any related fees.

 
  (b) 

LifePath ESG Index 2065 Fund normally invests its assets in underlying funds according to an asset allocation strategy designed for investors planning to retire or begin withdrawing assets around the year 2065.

 
  (c) 

The LifePath ESG Index Fund commenced operations on August 18, 2020.

 

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.

 

PORTFOLIO COMPOSITION

 

 
Asset Type  

Percent of   

Net Assets   

 

 

 

Equity Funds

    99.3%  

Money Market Funds

    9.6     

Fixed-Income Funds

    1.1     

Liabilities in Excess of Other Assets

    (10.0)    

 

 

TEN LARGEST HOLDINGS

 

 
Security(a)  

Percent of   

Net Assets   

 

 

 

iShares ESG Aware MSCI USA ETF

    54.8%  

iShares ESG Aware MSCI EAFE ETF

    19.7     

BlackRock Cash Funds: Institutional, SL Agency Shares

    9.0     

iShares ESG Aware MSCI EM ETF

    8.5     

iShares ESG Aware MSCI USA Small-Cap ETF

    5.1     

iShares Developed Real Estate Index Fund, Class K

    4.3     

iShares MSCI EAFE Small-Cap ETF

    3.2     

iShares MSCI Canada ETF

    2.3     

iShares MSCI Emerging Markets Small-Cap ETF

    1.4     

iShares ESG Aware U.S. Aggregate Bond ETF

    1.0     

 

 
 

 

(a) 

Excludes short-term securities.

 

 

24  

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About Fund Performance

 

Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors.

Investor A Shares are not subject to any sales charge and bear no ongoing distribution fee. These shares are subject to an ongoing service fee of 0.25% per year. These shares are generally available through financial intermediaries.

Past performance is not an indication of future results. Financial markets have experienced extreme volatility and trading in many instruments has been disrupted. These circumstances may continue for an extended period of time and may continue to affect adversely the value and liquidity of the LifePath ESG Index Funds’ investments. As a result, current performance may be lower or higher than the performance data quoted. Refer to blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on LifePath ESG Index Fund distributions or the redemption of LifePath ESG Index Fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date or payable date, as applicable. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

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

The LifePath ESG Index Funds’ custom benchmarks are hypothetical representations of the performance of the respective LifePath ESG Index Fund’s asset classes according to their weightings as of the most recent quarter-end. The weightings of the various indexes that are included in the LifePath ESG Index Funds’ custom benchmarks are adjusted quarterly to reflect the LifePath ESG Index Funds’ changing asset allocations over time. As of October 31, 2023, the following indexes are used to calculate the LifePath ESG Index Funds’ custom benchmarks: Bloomberg MSCI U.S. Aggregate ESG Focus Index, Bloomberg U.S. Treasury Inflation Protected Securities (“TIPS”) Index (Series-L), FTSE EPRA Nareit Developed Index, MSCI Canada Custom Capped Index, MSCI EAFE Extended ESG Focus Index, MSCI EAFE Small Cap Index, MSCI Emerging Markets Extended ESG Focus Index, MSCI Emerging Markets Small Cap Index, MSCI USA Extended ESG Focus Index and MSCI USA Small Cap Extended ESG Focus Index.

The Bloomberg MSCI U.S. Aggregate ESG Focus Index is an optimized fixed-income index designed to reflect the performance of U.S. dollar-denominated, investment-grade bonds from issuers generally evaluated for favorable ESG practices, while exhibiting risk and return characteristics similar to those of the Bloomberg U.S. Aggregate Bond Index. The Bloomberg U.S. TIPS Index (Series-L) is a market value-weighted index that tracks inflation-protected securities issued by the U.S. Treasury. The FTSE EPRA Nareit Developed Index is a global market capitalization weighted index composed of listed real estate securities from Developed Markets (DM) countries in North America, Europe, and Asia. The MSCI Canada Custom Capped Index is an index that is designed to measure the performance of the large and mid-cap segments of the Canadian market. The MSCI Canada Custom Capped Index uses a variation of MSCI 25/50 Indexes methodology. The MSCI EAFE Extended ESG Focus Index is an index based on the MSCI EAFE Index, its parent index, which includes securities across DM countries around the world, excluding the US and Canada. The Index is designed to maximize exposure to positive environmental, social and governance (ESG) factors while exhibiting risk and return characteristics similar to those of the MSCI EAFE Index. The MSCI EAFE Small Cap Index is an equity index which captures small cap representation across DM countries around the world, excluding the US and Canada. The index covers approximately 14% of the free float-adjusted market capitalization in each country. The MSCI Emerging Markets Extended ESG Focus Index is an index based on the MSCI Emerging Markets Index, its parent index, which includes securities across Emerging Markets (EM) countries. The index is designed to maximize exposure to positive ESG factors while exhibiting risk and return characteristics similar to those of the MSCI Emerging Markets Index. The MSCI Emerging Markets Small Cap Index is an equity index which includes small cap representation across EM countries. The index covers approximately 14% of the free float-adjusted market capitalization in each country. The MSCI USA Extended ESG Focus Index is an optimized equity index designed to reflect the equity performance of U.S. companies that have favorable ESG characteristics, while exhibiting risk and return characteristics similar to those of the MSCI USA Index. The MSCI USA Small Cap Extended ESG Focus Index is an index based on the MSCI USA Small Cap Index, its parent index, which includes small cap stocks across the U.S. equity markets. The Index is designed to maximize exposure to positive ESG factors while exhibiting risk and return characteristics similar to those of the MSCI USA Small Cap Index.

 

 

A B O U T   F U N D   P E R F O R M A N C E

  25


Disclosure of Expenses

 

Shareholders of each LifePath ESG Index Fund may incur the following charges: (a) transactional expenses; and (b) operating expenses, including investment advisory fees, administration fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples shown (which are based on a hypothetical investment of $1,000 invested at the beginning of the period and held through the end of the period) are intended to assist shareholders both in calculating expenses based on an investment in each LifePath ESG Index Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

Expense Example

 

    Actual      Hypothetical 5% Return         
 

 

 

    

 

 

    
     Beginning
Account Value
(05/01/23)
     Ending
Account Value
(10/31/23)
     Expenses
Paid During
the Period (a)
     Beginning
Account Value
(05/01/23)
     Ending
Account Value
(10/31/23)
     Expenses
Paid During
the Period (a)
     Annualized
Expense
Ratio
 

LifePath ESG Index Retirement Fund

 

           

Institutional

    $ 1,000.00        $ 954.50        $ 0.57        $ 1,000.00        $ 1,024.62        $ 0.59        0.12

Investor A

    1,000.00        953.10        1.78        1,000.00        1,023.38        1.85        0.36  

Class K

    1,000.00        954.80        0.30        1,000.00        1,024.89        0.31        0.06  

LifePath ESG Index 2025 Fund

 

              

Institutional

    1,000.00        955.70        0.54        1,000.00        1,024.66        0.56        0.11  

Investor A

    1,000.00        955.10        1.76        1,000.00        1,023.41        1.82        0.36  

Class K

    1,000.00        957.00        0.28        1,000.00        1,024.92        0.29        0.06  

LifePath ESG Index 2030 Fund

 

              

Institutional

    1,000.00        961.40        0.48        1,000.00        1,024.72        0.49        0.10  

Investor A

    1,000.00        960.60        1.70        1,000.00        1,023.47        1.75        0.34  

Class K

    1,000.00        961.80        0.22        1,000.00        1,024.99        0.22        0.04  

LifePath ESG Index 2035 Fund

 

              

Institutional

    1,000.00        962.40        0.41        1,000.00        1,024.78        0.43        0.08  

Investor A

    1,000.00        962.10        1.64        1,000.00        1,023.53        1.70        0.33  

Class K

    1,000.00        962.50        0.16        1,000.00        1,025.04        0.17        0.03  

LifePath ESG Index 2040 Fund

 

           

Institutional

    1,000.00        972.70        0.36        1,000.00        1,024.84        0.37        0.07  

Investor A

    1,000.00        971.40        1.60        1,000.00        1,023.58        1.65        0.32  

Class K

    1,000.00        973.10        0.11        1,000.00        1,025.09        0.11        0.02  

LifePath ESG Index 2045 Fund

 

              

Institutional

    1,000.00        969.40        0.31        1,000.00        1,024.89        0.32        0.06  

Investor A

    1,000.00        968.20        1.56        1,000.00        1,023.62        1.60        0.31  

Class K

    1,000.00        969.60        0.07        1,000.00        1,025.13        0.07        0.01  

LifePath ESG Index 2050 Fund

 

              

Institutional

    1,000.00        970.20        0.29        1,000.00        1,024.92        0.29        0.06  

Investor A

    1,000.00        968.40        1.53        1,000.00        1,023.65        1.58        0.31  

Class K

    1,000.00        970.40        0.04        1,000.00        1,025.16        0.05        0.01  

LifePath ESG Index 2055 Fund

 

              

Institutional

    1,000.00        971.00        0.28        1,000.00        1,024.92        0.29        0.06  

Investor A

    1,000.00        969.80        1.53        1,000.00        1,023.65        1.57        0.31  

Class K

    1,000.00        971.20        0.03        1,000.00        1,025.17        0.04        0.01  

LifePath ESG Index 2060 Fund

 

              

Institutional

    1,000.00        971.00        0.28        1,000.00        1,024.92        0.29        0.06  

Investor A

    1,000.00        969.90        1.53        1,000.00        1,023.66        1.57        0.31  

Class K

    1,000.00        971.20        0.04        1,000.00        1,025.17        0.04        0.01  

LifePath ESG Index 2065 Fund

 

              

Institutional

    1,000.00        971.00        0.28        1,000.00        1,024.92        0.29        0.06  

Investor A

    1,000.00        970.20        1.53        1,000.00        1,023.65        1.57        0.31  

Class K

    1,000.00        971.20        0.03        1,000.00        1,025.17        0.04        0.01  

 

(a) 

For each class of the LifePath ESG Index Funds, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period shown).

 

 

26  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index Retirement Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies(a)

   

Equity Funds — 40.0%

   

iShares Developed Real Estate Index Fund, Class K

    8,023     $ 63,701  

iShares ESG Aware MSCI EAFE ETF

    3,075       205,810  

iShares ESG Aware MSCI EM ETF

    2,981       87,552  

iShares ESG Aware MSCI USA ETF

    6,932       635,387  

iShares ESG Aware MSCI USA Small-Cap ETF

    3,159       99,350  

iShares MSCI Canada ETF

    744       23,615  

iShares MSCI EAFE Small-Cap ETF(b)

    603       32,447  

iShares MSCI Emerging Markets Small-Cap ETF

    286       14,878  
   

 

 

 
      1,162,740  
Fixed-Income Funds — 60.4%            

iShares ESG Aware U.S. Aggregate Bond ETF

    34,192       1,520,518  

iShares TIPS Bond ETF(b)

    2,301       236,543  
   

 

 

 
      1,757,061  

Money Market Funds — 9.6%

   

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)

    274,628       274,738  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)

    5,436       5,436  
   

 

 

 
      280,174  
   

 

 

 

Total Investments — 110.0%
(Cost: $3,431,330)

      3,199,975  

Liabilities in Excess of Other Assets — (10.0)%

 

    (290,212
   

 

 

 

Net Assets — 100.0%

    $   2,909,763  
   

 

 

 

 

(a) 

Affiliate of the Fund.

 

(b) 

All or a portion of this security is on loan.

 

(c) 

Annualized 7-day yield as of period end.

 

(d) 

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 October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
10/31/22
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 732,939     $     $ (458,563 )(a)    $ 335     $ 27     $ 274,738       274,628     $ 5,249 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    3,606       1,830 (a)                         5,436       5,436       507        

iShares Developed Real Estate Index Fund, Class K

    40,936       29,938       (1,808     (203     (5,162     63,701       8,023       1,404        

iShares ESG Aware MSCI EAFE ETF

    187,288       104,103       (109,600     4,869       19,150       205,810       3,075       5,616        

iShares ESG Aware MSCI EM ETF

    25,380       65,824       (1,879     (683     (1,090     87,552       2,981       957        

iShares ESG Aware MSCI USA ETF

    345,744       315,244       (55,245     2,399       27,245       635,387       6,932       8,179        

iShares ESG Aware MSCI USA Small-Cap ETF

    90,538       45,900       (31,583     604       (6,109     99,350       3,159       1,528        

iShares ESG Aware U.S. Aggregate Bond ETF

    960,632       702,132       (77,699      (18,274     (46,273     1,520,518       34,192       39,124        

iShares MSCI Canada ETF

    26,787       10,155       (12,595     (1,729     997       23,615       744       673        

iShares MSCI EAFE Small-Cap ETF

    27,100       13,608       (9,583     23       1,299       32,447       603       633        

iShares MSCI Emerging Markets Small-Cap ETF

    9,228       5,875       (1,726     97       1,404       14,878       286       188        

iShares TIPS Bond ETF

    150,010       102,576       (6,132     (1,183     (8,728     236,543       2,301       5,183        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (13,745   $ (17,240   $  3,199,975       $  69,241     $             —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

 

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

  27


Schedule of Investments  (continued)

October 31, 2023

   BlackRock LifePath® ESG Index Retirement Fund

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1      Level 2      Level 3      Total  

Assets

           

Investments

           

Investment Companies

           

Equity Funds

   $ 1,162,740      $      $      $ 1,162,740  

Fixed-Income Funds

     1,757,061                      1,757,061  

Money Market Funds

     280,174                      280,174  
  

 

 

    

 

 

    

 

 

    

 

 

 
   $  3,199,975      $             —      $             —      $  3,199,975  
  

 

 

    

 

 

    

 

 

    

 

 

 

See notes to financial statements.

 

 

28  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index 2025 Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies(a)

   

Equity Funds — 43.7%

   

iShares Developed Real Estate Index Fund, Class K

    7,940     $ 63,046  

iShares ESG Aware MSCI EAFE ETF

    3,477       232,716  

iShares ESG Aware MSCI EM ETF

    3,382       99,329  

iShares ESG Aware MSCI USA ETF

    7,695       705,322  

iShares ESG Aware MSCI USA Small-Cap ETF

    3,330       104,729  

iShares MSCI Canada ETF

    885       28,090  

iShares MSCI EAFE Small-Cap ETF

    716       38,528  

iShares MSCI Emerging Markets Small-Cap ETF

    349       18,155  
   

 

 

 
      1,289,915  
Fixed-Income Funds — 56.7%            

iShares ESG Aware U.S. Aggregate Bond ETF

    32,404         1,441,006  

iShares TIPS Bond ETF

    2,245       230,786  
   

 

 

 
      1,671,792  
Security   Shares     Value  

 

 

Money Market Funds — 0.2%

   

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(b)

    6,405     $ 6,405  
   

 

 

 

Total Investments — 100.6%
(Cost: $3,161,821)

      2,968,112  

Liabilities in Excess of Other Assets — (0.6)%

 

    (16,340
   

 

 

 
Net Assets — 100.0%         $  2,951,772  
   

 

 

 

 

(a) 

Affiliate of the Fund.

 

(b) 

Annualized 7-day yield as of period end.

 

Affiliates

Investments in issuers considered to be affiliate(s) of the Fund during the year ended October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
10/31/22
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

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

  $  1,123,681     $     $  (1,123,944 )(b)    $ 269     $ (6   $           $ 3,420 (c)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    5,067       1,338 (b)                         6,405       6,405       545        

iShares Developed Real Estate Index Fund, Class K

    53,630       21,688       (7,410     (585     (4,277     63,046       7,940       1,374        

iShares ESG Aware MSCI EAFE ETF

    303,475       62,130       (179,369     11,456       35,024       232,716       3,477       5,952        

iShares ESG Aware MSCI EM ETF

    41,181       67,763       (9,328     (1,558     1,271       99,329       3,382       1,241        

iShares ESG Aware MSCI USA ETF

    566,636        235,132       (131,978     3,197       32,335       705,322       7,695       10,445        

iShares ESG Aware MSCI USA Small-Cap ETF

    131,205       27,408       (46,830     3,202       (10,256     104,729       3,330       1,788        

iShares ESG Aware U.S. Aggregate Bond ETF

    1,162,673       484,530       (166,639     (31,486     (8,072     1,441,006       32,404       38,179        

iShares MSCI Canada ETF

    37,951       6,843       (16,018     (64     (622     28,090       885       848        

iShares MSCI EAFE Small-Cap ETF

    43,757       8,871       (17,796     (762     4,458       38,528       716       638        

iShares MSCI Emerging Markets Small-Cap ETF

    15,531       4,214       (3,683     (289     2,382       18,155       349       248        

iShares TIPS Bond ETF

    197,034       66,979       (26,404     (4,425     (2,398     230,786       2,245       5,073        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (21,045   $     49,839     $  2,968,112       $  69,751     $             —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (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 fees and collateral investment expenses, and other payments to and from borrowers of securities.

 

 

 

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

  29


Schedule of Investments  (continued)

October 31, 2023

   BlackRock LifePath® ESG Index 2025 Fund

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Investment Companies

                 

Equity Funds

   $ 1,289,915        $        $        $ 1,289,915  

Fixed-Income Funds

     1,671,792                            1,671,792  

Money Market Funds

     6,405                            6,405  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  2,968,112        $             —        $             —        $  2,968,112  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

30  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index 2030 Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies(a)

   

Equity Funds — 56.3%

   

iShares Developed Real Estate Index Fund, Class K

    17,100     $ 135,775  

iShares ESG Aware MSCI EAFE ETF

    8,367       560,003  

iShares ESG Aware MSCI EM ETF

    8,225       241,568  

iShares ESG Aware MSCI USA ETF(b)

    17,824       1,633,749  

iShares ESG Aware MSCI USA Small-Cap ETF

    6,334       199,204  

iShares MSCI Canada ETF

    2,035       64,591  

iShares MSCI EAFE Small-Cap ETF

    1,682       90,508  

iShares MSCI Emerging Markets Small-Cap ETF

    766       39,847  
   

 

 

 
      2,965,245  
Fixed-Income Funds — 43.8%            

iShares ESG Aware U.S. Aggregate Bond ETF

    43,591       1,938,492  

iShares TIPS Bond ETF(b)

    3,599       369,977  
   

 

 

 
      2,308,469  
Money Market Funds — 1.0%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)

    43,866       43,884  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)

    10,045       10,045  
   

 

 

 
      53,929  
   

 

 

 

Total Investments — 101.1%
(Cost: $5,475,939)

      5,327,643  

Liabilities in Excess of Other Assets — (1.1)%

 

    (58,255
   

 

 

 

Net Assets — 100.0%

    $   5,269,388  
   

 

 

 
    

 

(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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 October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
10/31/22
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $  1,049,206     $     $  (1,006,192 )(a)    $ 842     $ 28     $ 43,884       43,866     $ 4,700 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    5,785       4,260 (a)                         10,045       10,045       1,827        

iShares Developed Real Estate Index Fund, Class K

    78,441       87,192       (20,036     (1,740     (8,082     135,775       17,100       2,314        

iShares ESG Aware MSCI EAFE ETF

    438,075       359,263       (297,371     7,041       52,995       560,003       8,367       9,456        

iShares ESG Aware MSCI EM ETF

    57,636       213,661       (25,312     (7,371     2,954       241,568       8,225       1,840        

iShares ESG Aware MSCI USA ETF

    841,465        1,029,372       (275,543     155       38,300       1,633,749       17,824       18,128        

iShares ESG Aware MSCI USA Small-Cap ETF

    160,844       130,822       (78,227     717       (14,952     199,204       6,334       2,476        

iShares ESG Aware U.S. Aggregate Bond ETF

    980,416       1,277,888       (268,340     (51,326     (146     1,938,492       43,591       35,992        

iShares MSCI Canada ETF

    44,624       39,543       (16,779     847       (3,644     64,591       2,035       1,115        

iShares MSCI EAFE Small-Cap ETF

    63,675       54,940       (31,765     (3,212     6,870       90,508       1,682       1,024        

iShares MSCI Emerging Markets Small-Cap ETF

    23,708       23,359       (10,133     (612     3,525       39,847       766       382        

iShares TIPS Bond ETF

    195,332       233,100       (49,567     (8,318     (570     369,977       3,599       5,666        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $  (62,977   $     77,278     $  5,327,643       $  84,920     $             —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

 

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

  31


Schedule of Investments  (continued)

October 31, 2023

   BlackRock LifePath® ESG Index 2030 Fund

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Investment Companies

                 

Equity Funds

   $ 2,965,245        $        $        $ 2,965,245  

Fixed-Income Funds

     2,308,469                            2,308,469  

Money Market Funds

     53,929                            53,929  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  5,327,643        $             —        $             —        $  5,327,643  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

32  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index 2035 Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies(a)

   

Equity Funds — 68.2%

   

iShares Developed Real Estate Index Fund, Class K

    12,658     $ 100,506  

iShares ESG Aware MSCI EAFE ETF

    6,196       414,698  

iShares ESG Aware MSCI EM ETF(b)

    6,062       178,041  

iShares ESG Aware MSCI USA ETF(b)

    12,875       1,180,123  

iShares ESG Aware MSCI USA Small-Cap ETF

    4,059       127,656  

iShares MSCI Canada ETF

    1,519       48,213  

iShares MSCI EAFE Small-Cap ETF(b)

    1,242       66,832  

iShares MSCI Emerging Markets Small-Cap ETF

    576       29,963  
   

 

 

 
        2,146,032  
Fixed-Income Funds — 32.1%            

iShares ESG Aware U.S. Aggregate Bond ETF

    18,593       826,831  

iShares TIPS Bond ETF(b)

    1,791       184,115  
   

 

 

 
      1,010,946  
Money Market Funds — 26.5%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)

    824,480       824,810  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)

    8,047       8,047  
   

 

 

 
      832,857  
   

 

 

 

Total Investments — 126.8%
(Cost: $4,030,636)

      3,989,835  

Liabilities in Excess of Other Assets — (26.8)%

 

    (842,326
   

 

 

 

Net Assets — 100.0%

    $ 3,147,509  
   

 

 

 

    

 

(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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 October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
10/31/22
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 575,447     $ 249,207 (a)    $     $ 114     $ 42     $ 824,810       824,480     $ 5,936 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    5,790       2,257 (a)                         8,047       8,047       473        

iShares Developed Real Estate Index Fund, Class K

    77,174       34,941       (2,613     (495     (8,501     100,506       12,658       2,313        

iShares ESG Aware MSCI EAFE ETF

    426,076       131,230       (203,882         10,217       51,057       414,698       6,196       10,869        

iShares ESG Aware MSCI EM ETF

    58,755       129,546       (6,940     (1,450     (1,870     178,041       6,062       2,011        

iShares ESG Aware MSCI USA ETF

    834,862       360,085       (76,900     173       61,903       1,180,123       12,875       17,324        

iShares ESG Aware MSCI USA Small-Cap ETF

    137,443       45,651       (47,548     1,062       (8,952     127,656       4,059       2,060        

iShares ESG Aware U.S. Aggregate Bond ETF

    556,184       328,690       (25,768     (5,808     (26,467     826,831       18,593       21,876        

iShares MSCI Canada ETF

    41,816       12,441       (3,999     (50     (1,995     48,213       1,519       1,131        

iShares MSCI EAFE Small-Cap ETF

    61,790       17,735       (16,484     (1,223     5,014       66,832       1,242       1,214        

iShares MSCI Emerging Markets Small-Cap ETF

    22,749       6,926       (3,131     (134     3,553       29,963       576       389        

iShares TIPS Bond ETF

    126,604       68,723       (4,276     (866     (6,070     184,115       1,791       4,101        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ 1,540     $         67,714     $  3,989,835       $  69,697     $             —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

 

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

  33


Schedule of Investments  (continued)

October 31, 2023

   BlackRock LifePath® ESG Index 2035 Fund

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Investment Companies

                 

Equity Funds

   $ 2,146,032        $        $        $ 2,146,032  

Fixed-Income Funds

     1,010,946                            1,010,946  

Money Market Funds

     832,857                            832,857  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $ 3,989,835        $        $        $ 3,989,835  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

34  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index 2040 Fund

(Percentages shown are based on Net Assets)

 

Security   Shares      Value  

 

 

Investment Companies(a)

    

Equity Funds — 79.3%

    

iShares Developed Real Estate Index Fund, Class K

    31,783      $ 252,358  

iShares ESG Aware MSCI EAFE ETF

    15,477        1,035,876  

iShares ESG Aware MSCI EM ETF(b)

    15,451        453,796  

iShares ESG Aware MSCI USA ETF

    32,263        2,957,227  

iShares ESG Aware MSCI USA Small-Cap ETF

    9,324        293,240  

iShares MSCI Canada ETF

    3,814        121,056  

iShares MSCI EAFE Small-Cap ETF

    3,159        169,986  

iShares MSCI Emerging Markets Small-Cap ETF

    1,450        75,429  
    

 

 

 
         5,358,968  
Fixed-Income Funds — 20.7%             

iShares ESG Aware U.S. Aggregate Bond ETF

    24,901        1,107,347  

iShares TIPS Bond ETF(b)

    2,869        294,933  
    

 

 

 
       1,402,280  
Money Market Funds — 2.5%             

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)

    151,493        151,554  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)

    14,338        14,338  
    

 

 

 
       165,892  
    

 

 

 

Total Investments — 102.5%
(Cost: $7,002,380)

       6,927,140  

Liabilities in Excess of Other Assets — (2.5)%

 

     (169,757
    

 

 

 

Net Assets — 100.0%

     $ 6,757,383  
    

 

 

 

    

 

(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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 October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
10/31/22
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 90,700     $ 60,336 (a)    $     $ 518     $     $ 151,554       151,493     $ 6,945 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    8,157       6,181 (a)                         14,338       14,338       2,599        

iShares Developed Real Estate Index Fund, Class K

    105,211       186,695       (17,233     (2,678     (19,637     252,358       31,783       4,266        

iShares ESG Aware MSCI EAFE ETF

    581,229       754,198       (356,283     5,271       51,461       1,035,876       15,477       16,140        

iShares ESG Aware MSCI EM ETF

    79,741       420,820       (33,757     (5,710     (7,298     453,796       15,451       2,920        

iShares ESG Aware MSCI USA ETF

     1,152,223        2,029,187       (256,824     1,218       31,423       2,957,227       32,263       30,863        

iShares ESG Aware MSCI USA Small-Cap ETF

    169,072       220,429       (74,954     (1,407     (19,900     293,240       9,324       3,160        

iShares ESG Aware U.S. Aggregate Bond ETF

    395,219       822,769       (73,310     (16,202     (21,129     1,107,347       24,901       17,788        

iShares MSCI Canada ETF

    52,385       84,701       (8,405     (341     (7,284     121,056       3,814       1,540        

iShares MSCI EAFE Small-Cap ETF

    85,885       116,210       (31,500     (3,803     3,194       169,986       3,159       1,803        

iShares MSCI Emerging Markets Small-Cap ETF

    32,022       47,653       (7,496     (522     3,772       75,429       1,450       577        

iShares TIPS Bond ETF

    107,879       213,924       (18,833     (3,744     (4,293     294,933       2,869       3,931        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $ (27,400   $ 10,309     $  6,927,140       $  92,532     $  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

 

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

  35


Schedule of Investments  (continued)

October 31, 2023

   BlackRock LifePath® ESG Index 2040 Fund

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Investment Companies

                 

Equity Funds

   $ 5,358,968        $        $        $ 5,358,968  

Fixed-Income Funds

     1,402,280                            1,402,280  

Money Market Funds

     165,892                            165,892  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  6,927,140        $             —        $             —        $  6,927,140  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

36  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index 2045 Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies(a)

   

Equity Funds — 89.7%

   

iShares Developed Real Estate Index Fund, Class K

    21,487     $ 170,606  

iShares ESG Aware MSCI EAFE ETF

    10,844       725,789  

iShares ESG Aware MSCI EM ETF

    10,960       321,895  

iShares ESG Aware MSCI USA ETF

    22,322       2,046,035  

iShares ESG Aware MSCI USA Small-Cap ETF

    5,916       186,058  

iShares MSCI Canada ETF

    2,674       84,873  

iShares MSCI EAFE Small-Cap ETF(b)

    2,230       119,996  

iShares MSCI Emerging Markets Small-Cap ETF(b)

    1,030       53,580  
   

 

 

 
        3,708,832  
Fixed-Income Funds — 10.5%            

iShares ESG Aware U.S. Aggregate Bond ETF

    7,311       325,120  

iShares TIPS Bond ETF

    1,054       108,351  
   

 

 

 
      433,471  
Money Market Funds — 1.8%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)

    67,678       67,705  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)

    9,612       9,612  
   

 

 

 
      77,317  
   

 

 

 

Total Investments — 102.0%
(Cost: $4,121,233)

      4,219,620  

Liabilities in Excess of Other Assets — (2.0)%

 

    (84,121
   

 

 

 

Net Assets — 100.0%

    $ 4,135,499  
   

 

 

 

    

 

(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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 October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

                   
Affiliated Issuer   Value at
10/31/22
    Purchases
at Cost
    Proceeds
from Sales
    Net
Realized
Gain (Loss)
    Change in
Unrealized
Appreciation
(Depreciation)
    Value at
10/31/23
    Shares
Held at
10/31/23
    Income     Capital Gain
Distributions
from
Underlying
Funds
 

BlackRock Cash Funds: Institutional, SL Agency Shares

  $ 68,027     $     $ (757 )(a)     $ 431     $ 4     $ 67,705       67,678     $ 5,811 (b)    $  

BlackRock Cash Funds: Treasury, SL Agency Shares

    9,165       447 (a)                         9,612       9,612       513        

iShares Developed Real Estate Index Fund, Class K

    146,767       44,883       (6,431     (1,245     (13,368     170,606       21,487       4,097        

iShares ESG Aware MSCI EAFE ETF

    796,257       168,704       (351,069     255       111,642       725,789       10,844       20,042        

iShares ESG Aware MSCI EM ETF

    108,532       233,254       (13,945     (1,590     (4,356     321,895       10,960       3,725        

iShares ESG Aware MSCI USA ETF

    1,591,691       458,805       (116,742     (9,222     121,503       2,046,035       22,322       31,254        

iShares ESG Aware MSCI USA Small-Cap ETF

    214,189       54,436       (70,826     (1,030     (10,711     186,058       5,916       3,042        

iShares ESG Aware U.S. Aggregate Bond ETF

    217,347       130,339       (10,023     (1,937     (10,606     325,120       7,311       8,534        

iShares MSCI Canada ETF

    71,081       20,864       (3,148     (63     (3,861     84,873       2,674       1,943        

iShares MSCI EAFE Small-Cap ETF

    116,653       20,803       (24,557     (4,280     11,377       119,996       2,230       2,250        

iShares MSCI Emerging Markets Small-Cap ETF

    44,584       7,725       (5,190     (557     7,018       53,580       1,030       736        

iShares TIPS Bond ETF

    73,090       42,954       (3,574     (722     (3,397     108,351       1,054       2,404        
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 
        $  (19,960   $  205,245     $  4,219,620       $  84,351     $             —  
       

 

 

   

 

 

   

 

 

     

 

 

   

 

 

 

 

  (a) 

Represents net amount purchased (sold).

 
  (b) 

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

 

 

 

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

  37


Schedule of Investments  (continued)

October 31, 2023

   BlackRock LifePath® ESG Index 2045 Fund

 

Fair Value Hierarchy as of Period End

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

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

 

         
      Level 1        Level 2        Level 3        Total  

Assets

                 

Investments

                 

Investment Companies

                 

Equity Funds

   $ 3,708,832        $        $        $ 3,708,832  

Fixed-Income Funds

     433,471                            433,471  

Money Market Funds

     77,317                            77,317  
  

 

 

      

 

 

      

 

 

      

 

 

 
   $  4,219,620        $             —        $             —        $  4,219,620  
  

 

 

      

 

 

      

 

 

      

 

 

 

See notes to financial statements.

 

 

38  

2 0 2 3   B L A C K R O C K   A N N U A L   R E P O R T   T O   S H A R E H O L D E R S


Schedule of Investments

October 31, 2023

  

BlackRock LifePath® ESG Index 2050 Fund

(Percentages shown are based on Net Assets)

 

Security   Shares     Value  

 

 

Investment Companies(a)

   

Equity Funds — 96.3%

   

iShares Developed Real Estate Index Fund, Class K

    24,864     $ 197,418  

iShares ESG Aware MSCI EAFE ETF

    13,302       890,303  

iShares ESG Aware MSCI EM ETF

    13,150       386,215  

iShares ESG Aware MSCI USA ETF

    27,155       2,489,027  

iShares ESG Aware MSCI USA Small-Cap ETF(b)

    7,332       230,591  

iShares MSCI Canada ETF

    3,217       102,108  

iShares MSCI EAFE Small-Cap ETF

    2,690       144,749  

iShares MSCI Emerging Markets Small-Cap ETF

    1,256       65,337  
   

 

 

 
      4,505,748  
Fixed-Income Funds — 3.8%            

iShares ESG Aware U.S. Aggregate Bond ETF

    2,845       126,517  

iShares TIPS Bond ETF(b)

    482       49,550  
   

 

 

 
      176,067  
Money Market Funds — 2.2%            

BlackRock Cash Funds: Institutional, SL Agency Shares, 5.54%(c)(d)

    90,023       90,059  

BlackRock Cash Funds: Treasury, SL Agency Shares, 5.33%(c)

    14,899       14,899  
   

 

 

 
      104,958  
   

 

 

 

Total Investments — 102.3%
(Cost: $4,658,894)

      4,786,773  

Liabilities in Excess of Other Assets — (2.3)%

 

    (109,759
   

 

 

 

Net Assets — 100.0%

    $ 4,677,014  
   

 

 

 

    

 

(a) 

Affiliate of the Fund.

(b) 

All or a portion of this security is on loan.

(c) 

Annualized 7-day yield as of period end.

(d) 

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 October 31, 2023 for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

 

&