UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT

INVESTMENT COMPANIES

Investment Company Act file number: 811-23339

Name of Fund: BlackRock Funds V

BlackRock Core Bond Portfolio

BlackRock Credit Strategies Income Fund

BlackRock GNMA Portfolio

BlackRock High Yield Bond Portfolio

BlackRock Low Duration Bond Portfolio

BlackRockU.S. Government Bond Portfolio

Fund Address:    100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Funds V, 55 East 52^nd Street, New York, NY 10055

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

Date of fiscal year end: 09/30/2019

Date of reporting period: 09/30/2019

Item 1 – Report to Stockholders

SEPTEMBER 30, 2019

2019 Annual Report

BlackRock Funds V

· BlackRock Credit Strategies Income Fund

· BlackRock GNMA Portfolio

· BlackRock U.S. Government Bond Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at www.blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

Investment performance in the 12 months ended September 30, 2019 was a tale of two markets. The first half of the reporting period was characterized by restrictive monetary policy, deteriorating economic growth, equity market volatility, and rising fear of an imminent recession. During the second half of the reporting period, stocks and bonds rebounded sharply, as influential central banks shifted toward accommodative monetary policy, which led to broad-based optimism that a near-term recession could be averted.

After the dust settled, equity and bond markets posted mixed returns while weathering significant volatility. Less volatile U.S. large cap equities and U.S. bonds advanced, while equities at the high end of the risk spectrum — emerging markets, international developed, and U.S. small cap — posted modest negative returns.

Fixed-income securities delivered strong returns with relatively low volatility, as interest rates declined (and bond prices rose). U.S. Treasuries, particularly long-term Treasuries, proved to be an effective ballast for diversified investors. Investment grade and high yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

In the U.S. equity market, volatility spiked in late 2018, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil. Volatility also rose in emerging markets, as the appreciating U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. An economic slowdown in Europe and ongoing uncertainty about Brexit led to negative performance for European equities.

As equity performance faltered and global economic growth slowed, the U.S. Federal Reserve (the “Fed”) shifted to a more patient perspective on the economy in January 2019. The Fed left interest rates unchanged for six months, then reduced interest rates twice thereafter. Following in the Fed’s footsteps, the European Central Bank announced aggressive economic stimulus measures, including lower interest rates and the return of its bond purchasing program. The Bank of Japan signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world despite the headwind of rising geopolitical and trade tensions. Hopes continued to remain high as the current economic expansion became the longest in U.S. history. Looking ahead, markets are pricing in additional rate cuts by the Fed over the next year, as investors anticipate a steady shift toward more stimulative monetary policy.

We continue to expect a slowing expansion with additional room to run. Despite a sharp slowdown in trade and manufacturing across the globe, U.S. consumers continued to spend at a relatively healthy pace, benefitting from the lowest unemployment rate in 50 years and rising wages. However, escalating trade tensions and the resulting disruptions in global supply chains are becoming increasingly unpredictable, as are geopolitical tensions in the Middle East.

We believe U.S. equities remain relatively attractive, but we are shifting to a more cautious stance within emerging markets and Asia ex-Japan equities. For bonds, U.S. Treasuries are likely to continue to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of September 30, 2019
	6-Month	12-Month
U.S. large cap equities (S&P 500® Index)	6.08%	4.25%
U.S. small cap equities (Russell 2000® Index)	(0.36)	(8.89)
International equities (MSCI Europe, Australasia, Far East Index)	2.57	(1.34)
Emerging market equities (MSCI Emerging Markets Index)	(3.66)	(2.02)
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	1.20	2.39
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	7.54	15.15
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	5.42	10.30
Tax-exempt municipal bonds (S&P Municipal Bond Index)	3.71	8.19
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	3.87	6.35
Past performance is no guarantee 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 Summaries		4
About Fund Performance		14
Disclosure of Expenses		15
The Benefits and Risks of Leveraging		15
Derivative Financial Instruments		15
Financial Statements:
Schedules of Investments		16
Statements of Assets and Liabilities		72
Statements of Operations		75
Statements of Changes in Net Assets		76
Statement of Cash Flows		78
Financial Highlights		80
Notes to Financial Statements		96
Report of Independent Registered Public Accounting Firm		115
Important Tax Information		115
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements		116
Trustee and Officer Information		120
Additional Information		123
Glossary of Terms Used in this Report		125

3

Fund Summary  as of September 30, 2019  BlackRock Credit Strategies Income Fund

Investment Objective

BlackRock Credit Strategies Income Fund’s (the “Fund”) investment objective is to seek to provide high current income, with a secondary objective of long-term capital appreciation.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended September 30, 2019, the Fund underperformed its Customized Reference Benchmark. The Customized Reference Benchmark is comprised of the returns of the Bloomberg Barclays Global High Yield 100% Hedged USD Index (25%), S&P/LSTA Leveraged Loan Index (25%), Bloomberg Barclays U.S. CMBS Investment Grade Index (25%), and JPMorgan Corporate Emerging Markets Bond Index Broad Diversified (CEMBI Broad Diversified) (25%). The Fund is not managed with reference to the current performance benchmark and its exposures may deviate meaningfully.

What factors influenced performance?

During the 12-month period, detractors from Fund performance were limited, as rates declined and risk assets performed well. Strategies against volatility in risk and interest rate markets detracted from Fund returns.

The Fund’s interest rate exposure was the largest contributor to performance for the 12-month period as Treasury yields declined. Emerging market exposure was additive, along with U.S. high yield corporate, investment grade corporate and floating rate loan interest (bank loan) positions, as these sectors continued to perform well. Finally, holdings in capital securities, European high yield and investment grade corporate issues, collateralized loan obligations and commercial mortgage backed securities added to Fund returns.

The Fund held an elevated cash position throughout the period. The cash position is representative of the Fund’s patient approach, as the investment adviser awaits favorable entry points into credit markets. The Fund’s cash position did not have a material impact on Fund performance during the period.

Lastly, as part of its investment strategy, the Fund employs derivatives, mainly forward contracts to manage foreign currency exposure of non-U.S. positions back to U.S. dollars, and interest rate futures to adjust duration positioning (sensitivity to interest rate changes) tactically as needed. Positive impacts included the use of forward foreign currency transactions used to manage non-U.S. positions back to U.S. dollars. Conversely, the Fund’s use of interest rate derivatives to manage exposure to interest rates had a negative effect. The Fund’s overall use of derivatives had a positive impact on Fund performance.

Describe recent portfolio activity.

Over the 12 months, the Fund navigated a period of heightened geopolitical risk, volatility and declining interest rates. The Fund added to its exposure within U.S. high yield and bank loans as both sectors continue to be supported by strong fundamentals and investor demand for income. Throughout the period, exposure to capital securities was decreased in favor of better relative value opportunities. The Fund also reduced exposure to European credit, as the region continues to face structural and geopolitical headwinds.

Describe portfolio positioning at period end.

The Fund ended the period with a lower duration (and corresponding sensitivity to interest rate changes) than its historic range. The Fund continued to hold meaningful allocations in high yield corporate bonds and bank loans. Overall, the Fund was positioned with an up-in-quality bias, focusing on companies with diverse and less cyclical cash flows given geopolitical uncertainty, fair valuations and potential late cycle volatility.

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.

4 2 0 1 9   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 September 30, 2019 (continued) BlackRock Credit Strategies Income Fund

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
Corporate Bonds	52	%
Floating Rate Loan Interests	25
Asset-Backed Securities	9
Investment Companies	7
Non-Agency Mortgage-Backed Securities	3
Foreign Agency Obligations	2
U.S. Treasury Obligations	2
U.S. Government Sponsored Agency Securities	—	(b)
Preferred Securities	—	(b)
Foreign Government Obligations	—	(b)
Common Stocks	—	(b)
Warrants	—	(b)
Other Interests	—	(b)

^(a)  Total Investments exclude short-term securities, options purchased and options written.

^(b)  Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION

Credit Rating (a)	Percent of Total Investments	(b)
AAA/Aaa(c)	3	%
AA/Aa	—	(d)
A	8
BBB/Baa	17
BB/Ba	24
B	31
CCC/Caa	3
CC/Ca	—	(d)
D	—	(d)
NR	14

^(a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)  Total Investments exclude short-term securities, options purchased and options written.

^(c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.

^(d)  Represents less than 1% of the Fund’s total investments.

F U N D   S U M M A R Y 5

Fund Summary  as of September 30, 2019 (continued) BlackRock Credit Strategies Income Fund

TOTAL RETURN BASED ON A $10,000 INVESTMENT

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

^(b) Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowings for investment purposes) in fixed-income securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Credit Strategies Income Fund (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Predecessor Fund’s returns between July 2, 2012 and July 1, 2016 are the returns of the Predecessor Fund when it followed a different investment objectives and different investment strategies under the name BlackRock Secured Credit Portfolio. The Predecessor Fund’s returns prior to July 2, 2012 are the returns of the Predecessor Fund when it followed different investment objectives and investment strategies under the name BlackRock Multi-Sector Bond Portfolio.

^(c)  Market value-weighted index designed to measure the performance of U.S. leveraged loan market. It mirrors the market-weighted performance of the largest institutional leveraged loans based upon market weightings, spreads and interest payments.

^(d)  Bloomberg Barclays Global High Yield 100% Hedged USD Index is a “hedged” version of the Bloomberg Barclays Global High Yield Index which is a multi-currency flagship measure of the global high yield debt market. The index represents the union of the U.S. High Yield, the Pan-European High Yield, and Emerging Markets (EM) Hard Currency High Yield Indices. The high yield and emerging markets sub-components are mutually exclusive.

^(e)  The index measures the market of conduit and fusion CMBS deals with a minimum current deal size of $300mn. The index is divided into two subcomponents: the U.S. Aggregate-eligible component, which contains bonds that are Employee Retirement Income Security Act of 1974, as amended (“ERISA”) eligible under the underwriter’s exemption, and the non-U.S. Aggregate- eligible component, which consists of bonds that are not ERISA eligible.

^(f)  A market capitalization weighted index consisting of U.S.-dollar-denominated emerging market corporate bonds. According to J.P. Morgan, this index limits the weights of those index countries with larger corporate debt stocks by only including a specified portion of these countries’ eligible current face amounts of debt outstanding.

^(g)  A customized performance benchmark comprised of the returns of the Bloomberg Barclays Global High Yield 100% Hedged USD Index (25%), the S&P/LSTA Leveraged Loan Index (25%), the Bloomberg Barclays U.S. CMBS Investment Grade Index (25%) and the JPMorgan Corporate Emerging Markets Bond Index Broad Diversified (CEMBI Broad Diversified) (25%).

^(h)  Commencement of operations.

6 2 0 1 9   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 September 30, 2019 (continued) BlackRock Credit Strategies Income Fund

Performance Summary for the Period Ended September 30, 2019

										Average Annual Total Returns (a)(b)
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			1 Year						5 Years						Since Inception(c)
										w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales       charge
Institutional		4.13	%		4.01	%		4.75	%		7.22	%		N/A			4.64	%		N/A			5.34	%		N/A
Investor A		3.78			3.68			4.62			6.96			4.28	%		4.38			3.85	%		5.07			4.79%
Investor C		3.13			2.99			4.12			6.16			5.16			3.60			3.60			4.29			4.29
Class K		4.18			4.06			4.77			7.27			N/A			4.67			N/A			5.35			N/A
S&P/LSTA Leveraged Loan Index		—			—			2.69			3.10			N/A			3.98			N/A			4.79			N/A
Bloomberg Barclays Global High Yield 100% Hedged USD Index		—			—			3.08			6.61			N/A			5.55			N/A			7.68			N/A
Bloomberg Barclays U.S. CMBS
Investment Grade Index		—			—			5.23			10.51			N/A			3.67			N/A			5.13			N/A
JPMorgan CEMBI Broad Diversified Index		—			—			5.22			10.59			N/A			5.21			N/A			6.10			N/A
Customized Reference Benchmark		—			—			4.07			7.71			N/A			4.63			N/A			5.95			N/A

^(a) Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 14 for a detailed description of share classes, including any related sales charges fees, and how performance was calculated for certain share classes.

^(b) Under normal market conditions, the Fund invests at least 80% of its net assets (plus the amount of any borrowing for investment purposes) in fixed-income securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Credit Strategies Income Fund (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization. The Predecessor Fund’s returns between July 2, 2012 and July 1, 2016 are the returns of the Predecessor Fund when it followed different investment objectives and different investment strategies under the name BlackRock Secured Credit Portfolio. The Predecessor Fund’s returns prior to July 2, 2012 are the returns of the Predecessor Fund when it followed different investment objectives and investment strategies under the name BlackRock Multi-Sector Bond Portfolio.

^(c)  The Fund commenced operations on February 26, 2010.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

Expense Example

	Actual						Hypothetical (a)						Annualized Expense Ratio
	Beginning       Account Value (04/01/19)		Ending   Account Value (09/30/19)		Expenses Paid During     the Period (b)		Beginning       Account Value (04/01/19)		Ending   Account Value (09/30/19)		Expenses Paid During   the Period (b)
Institutional		$        1,000.00	$	1,047.50	$	3.18		$        1,000.00	$	1,021.96	$	3.14	0.62%
Investor A		1,000.00		1,046.20		4.46		1,000.00		1,020.71		4.41	0.87
Investor C		1,000.00		1,041.20		8.29		1,000.00		1,016.95		8.19	1.62
Class K		1,000.00		1,047.70		2.93		1,000.00		1,022.21		2.89	0.57

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b) For each class of the Fund, expenses are equal to the annualized expense ratio for the class, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.

F U N D   S U M M A R Y 7

Fund Summary  as of September 30, 2019  BlackRock GNMA Portfolio

Investment Objective

BlackRock GNMA Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended September 30, 2019, the Fund’s Institutional and Class K Shares outperformed the benchmark, the Bloomberg Barclays GNMA MBS Index, while the Fund’s Service, Investor A and Investor C Shares underperformed the benchmark.

What factors influenced performance?

The largest positive contributors to the Fund’s performance included an out-of-benchmark allocation to agency collateralized mortgage obligations (“CMOs”) with prepayment protected and seasoned collateral. The use of mortgage derivatives, such as interest-only and inverse interest-only bonds also aided Fund returns.

An allocation to Treasury inflation-protected securities detracted modestly from Fund performance as inflation expectations declined during the period.

Describe recent portfolio activity.

Over the period, the Fund increased its allocation to agency mortgage backed securities (“MBS”) to an overweight, concentrated in deeply seasoned, higher coupon 30-year GNMA pools. The Fund trimmed its allocation to agency CMOs with seasoned collateral. The allocations to agency commercial mortgage backed securities (“CMBS”) and GNMA interest-only debt were reduced over the period, in favor of conventional agency MBS.

During the period, the Fund held a small percentage of assets in derivatives including futures contracts as a means to manage risk against allocations to securitized assets. The Fund’s use of derivatives had a negative impact on Fund performance.

Describe portfolio positioning at period end.

The Fund ended the period with an overweight position to agency MBS, on the view that current valuations are attractive relative to Treasuries and other high-quality fixed income sectors, and that fundamental headwinds including increased prepayments are lessening. The Fund continued to hold a small allocation to agency CMBS. Relative to the Bloomberg Barclays GNMA MBS Index, the Fund ended the period underweight overall portfolio duration.

The views expressed reflect the opinions of BlackRock as of the date of this report and are subject to change based on changes in market, economic or other conditions. These views are not intended to be a forecast of future events and are no guarantee of future results.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
U.S. Government Sponsored Agency Securities	99	%
U.S. Treasury Obligations	1
Non-Agency Mortgage-Backed Securities	—	(b)

^(a)  Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(b)  Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION

Credit Rating (a)	Percent of Total Investments	(b)
AAA/Aaa(c)	100	%
AA/Aa	—	(d)

^(a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)  Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.

^(d)  Represents less than 1% of the Fund’s total investments.

8 2 0 1 9   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 September 30, 2019 (continued) BlackRock GNMA Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

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

^(b) Under normal circumstances, the Fund invests at least 80% of its assets in Government National Mortgage Association (“GNMA”) securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock GNMA Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  An unmanaged index comprised of mortgage-backed pass through securities of GNMA.

Performance Summary for the Period Ended September 30, 2019

										Average Annual Total Returns (a)(b)
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			1 Year						5 Years						10 Years
										w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales       charge
Institutional		2.64	%		2.48	%		3.83	%		7.55	%		N/A			2.39	%		N/A			3.29	%		N/A
Service		2.39			2.17			3.70			7.18			N/A			2.07			N/A			2.95			N/A
Investor A		2.30			2.10			3.69			7.27			2.98	%		2.10			1.27	%		2.95			2.54%
Investor C		1.64			1.46			3.31			6.49			5.49			1.33			1.33			2.19			2.19
Class K		2.69			2.58			3.86			7.62			N/A			2.45			N/A			3.32			N/A
Bloomberg Barclays GNMA MBS Index		—			—			3.13			7.34			N/A			2.54			N/A			3.19			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees.

^(b)  Under normal circumstances, the Fund invests at least 80% of its assets in Government National Mortgage Association (“GNMA”) securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock GNMA Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

F U N D   S U M M A R Y 9

Fund Summary  as of September 30, 2019 (continued) BlackRock GNMA Portfolio

Expense Example

	Actual								Hypothetical (a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Ending Account Value (09/30/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,038.30	$	4.19	$	2.15	$	1,000.00	$	1,020.96	$	4.15	$	1,022.96	$	2.13
Service		1,000.00		1,037.00		5.41		3.37		1,000.00		1,019.75		5.37		1,021.76		3.35
Investor A		1,000.00		1,036.90		5.46		3.42		1,000.00		1,019.70		5.42		1,021.71		3.40
Investor C		1,000.00		1,033.10		9.07		7.03		1,000.00		1,016.14		9.00		1,018.15		6.98
Class K		1,000.00		1,038.60		4.09		2.04		1,000.00		1,021.06		4.05		1,023.06		2.03

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.82% for Institutional, 1.06% for Service, 1.07% for Investor A, 1.78% for Investor C and 0.80% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

^(c) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.42% for Institutional, 0.66% for Service, 0.67% for Investor A, 1.38% for Investor C and 0.40% for Class K), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.

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Fund Summary  as of September 30, 2019  BlackRock U.S. Government Bond Portfolio

Investment Objective

BlackRock U.S. Government Bond Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended September 30, 2019, the Fund underperformed the benchmark, the Bloomberg Barclays U.S. Government/Mortgage Index.

What factors influenced performance?

The most significant detractors from Fund performance relative to the benchmark included the Fund’s allocations to Treasury inflation-protected securities and other inflation strategies, as inflation expectations declined over the period. Security selection within 30-year agency mortgage backed securities (“MBS”) and U.S. Treasuries detracted as well.

Positive contributions to the Fund’s performance relative to the benchmark were led by an out-of-benchmark allocation to commercial mortgage-backed securities (“CMBS”). Positioning with respect to global interest rates and currencies also added to relative performance. Finally, an allocation to collateralized mortgage obligations (“CMOs”) was additive to Fund returns.

Describe recent portfolio activity.

Over the period, the Fund increased its allocation to agency MBS to an overweight, primarily in 30-year conventional pass through, and it also added to agency CMOs. The Fund maintained its overall allocation to CMBS, shifting out of agency CMBS collateral in favor of single-asset single borrower issues.

Describe portfolio positioning at period end.

The Fund ended the period with an overweight to agency MBS, on the view that current valuations are attractive relative to Treasuries and other high-quality fixed income sectors, and that fundamental headwinds including increased prepayments are lessening. The Fund maintained allocations to agency CMBS and agency CMOs. Outside of the United States, the Fund maintained modest allocations to local currency emerging market sovereign debt in Asia, Latin America, and Central Europe.

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.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
U.S. Government Sponsored Agency Securities	52	%
U.S. Treasury Obligations	43
Non-Agency Mortgage-Backed Securities	3
Asset-Backed Securities	1
Foreign Government Obligations	1
Foreign Agency Obligations	—	(b)

^(a)  Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(b)  Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION

Credit Rating (a)	Percent of Total Investments	(b)
AAA/Aaa(c)	98	%
AA/Aa	1
A	—	(d)
BBB/Baa	—	(d)
NR	1

^(a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)  Total Investments exclude short-term securities, options purchased, options written and TBA sale commitments.

^(c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.

^(d)  Represents less than 1% of the Fund’s total investments.

F U N D   S U M M A R Y 11

Fund Summary  as of September 30, 2019 (continued) BlackRock U.S. Government Bond Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

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

^(b) Under normal circumstances, the Fund invests at least 80% of its assets in bonds that are issued or guaranteed by the U.S. Government and its agencies. The Fund invests primarily in the highest rated government and agency bonds and maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg Barclays U.S. Government/Mortgage Index. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock U.S. Government Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c) An index that measures debt issued by the U.S. Government, and its agencies, as well as mortgage-backed pass-through securities of Ginnie Mae, Fannie Mae and Freddie Mac.

Performance Summary for the Period Ended September 30, 2019

										Average Annual Total Returns (a)(b)
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			1 Year						5 Years						10 Years
										w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales     charge
Institutional		1.98	%		1.77	%		4.35	%		8.86	%		N/A			2.55	%		N/A			2.98	%		N/A
Service		1.73			1.48			4.32			8.60			N/A			2.32			N/A			2.75			N/A
Investor A		1.67			1.46			4.32			8.57			4.23	%		2.27			1.44	%		2.67			2.25%
Investor C		1.00			0.72			3.83			7.78			6.78			1.50			1.50			1.87			1.87
Investor C1		1.19			0.73			4.04			7.99			N/A			1.69			N/A			2.09			N/A
Class K		2.03			1.90			4.38			8.81			N/A			2.57			N/A			2.99			N/A
Class R		1.48			1.08			4.19			8.30			N/A			2.01			N/A			2.42			N/A
Bloomberg Barclays U.S. Government/ Mortgage Index		—			—			4.60			9.34			N/A			2.86			N/A			3.07			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 14 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain share classes.

^(b)  Under normal circumstances, the Fund invests at least 80% of its assets in bonds that are issued or guaranteed by the U.S. Government and its agencies. The Fund invests primarily in the highest rated government and agency bonds and maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg Barclays U.S. Government/Mortgage Index. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock U.S. Government Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

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Fund Summary  as of September 30, 2019 (continued) BlackRock U.S. Government Bond Portfolio

Expense Example

	Actual										Hypothetical (a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period (c)		Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Ending Account Value (09/30/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,043.50	$	4.41	$	2.36	$	1,000.00	$	1,020.76	$	4.36	$	1,022.76	$	2.33
Service		1,000.00		1,043.20		6.10		4.05		1,000.00		1,019.10		6.02		1,021.11		4.00
Investor A		1,000.00		1,043.20		5.63		3.59		1,000.00		1,019.55		5.57		1,021.56		3.55
Investor C		1,000.00		1,038.30		9.40		7.36		1,000.00		1,015.84		9.30		1,017.85		7.28
Investor C1		1,000.00		1,040.40		8.29		6.24		1,000.00		1,016.95		8.19		1,018.95		6.17
Class K		1,000.00		1,043.80		4.35		2.31		1,000.00		1,020.81		4.31		1,022.81		2.28
Class R		1,000.00		1,041.90		6.76		4.71		1,000.00		1,018.45		6.68		1,020.46		4.66

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.86% for Institutional, 1.19% for Service, 1.10% for Investor A, 1.84% for Investor C, 1.62% for Investor C1, 0.85% for Class K and 1.32% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

^(c) For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.46% for Institutional, 0.79% for Service, 0.70% for Investor A, 1.44% for Investor C, 1.22% for Investor C1,0.45% for Class K and 0.92% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 15 for further information on how expenses were calculated.

F U N D   S U M M A R Y 13

About Fund Performance  

Institutional and Class K Shares are not subject to any sales charge. These shares bear no ongoing distribution or service fees and are available only to certain eligible investors. Class K Shares performance shown prior to the Credit Strategies Income Fund’s Class K Shares inception date of August 1, 2016 and U.S. Government Bond Portfolio’s Class K Shares inception date of January 25, 2018 is that of Institutional Shares. The performance of each Fund’s Class K Shares would be substantially similar to Institutional Shares because Class K Shares and Institutional Shares invest in the same portfolio of securities and performance would only differ to the extent that Class K Shares and Institutional Shares have different expenses. The actual returns of Class K Shares would have been higher than those of the Institutional Shares because Class K Shares have lower expenses than the Institutional Shares.

Service Shares (available only in GNMA Portfolio and U.S. Government Bond Portfolio) are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.00% for all Funds included in this report, except for Credit Strategies Income Fund (which is subject to an initial sales charge of 2.50%), and a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares.

Investor C1 Shares (available only in U.S. Government Bond Portfolio) are subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders. In addition, these shares are subject to a distribution fee of 0.55% per year and a service fee of 0.25% per year. Investor C1 Shares performance shown prior to the U.S. Government Bond Portfolio’s Investor C1 Shares inception date of July 18, 2011 is that of Institutional Shares (which have no distribution or service fees) and was restated to reflect Investor C1 Shares fees. Investor C1 Shares of U.S. Government Bond Portfolio are only available for dividend and capital gain reinvestment by existing shareholders and for purchase by certain employer-sponsored retirement plans. Effective November 8, 2018, the U.S. Government Bond Portfolio adopted an automatic conversion feature whereby Investor C1 Shares held for approximately ten years will be automatically converted into Investor A Shares.

Class R Shares (available only in U.S. Government Bond Portfolio) are not subject to any sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares are available only to certain employer-sponsored retirement plans. Class R Shares performance shown prior to the U.S. Government Bond Portfolio’s Class R Shares inception date of July 18, 2011 is that of Institutional Shares (which have no distribution or service fees) and was restated to reflect Class R Shares fees.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com to obtain performance data current to the most recent month-end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend date/payable date. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. With respect to each Fund’s voluntary waivers, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waivers may be reduced or discontinued at any time. With respect to each Fund’s contractual waivers, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

14 2 0 1 9   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

Disclosure of Expenses  

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, administration fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on April 1, 2019 and held through September 30, 2019) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance returns and NAV. However, there is no guarantee that these objectives can be achieved in all interest rate environments.

The Funds may utilize leverage by entering into reverse repurchase agreements.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by each Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is distributed to the Funds’ shareholders, and the value of these portfolio holdings is reflected in the Funds’ per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage.

Furthermore, the value of each Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively in addition to the impact on each Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that a Fund’s leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by the Funds’ shareholders and may reduce income.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

D I S C L O S U R E   O F   E X P E N S E S   /   T H E   B E N E F I T S   A N D   R I S K S   A N D   L E V E R A G I N G   /   D E R I V A T I V E   F I N A N C I A L   I N S T R U M E N T S 15

Schedule of Investments September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 7.8%
AIMCO CLO, Series 2017-AA, Class C, (LIBOR USD 3 Month + 2.45%), 4.73%, 07/20/29(a)(b)	USD		1,000	$	994,630
AIMCO CLO 10 Ltd., Series 2019-10A, Class D, (LIBOR USD 3 Month + 3.55%), 5.85%, 07/22/32(a)(b)			750		730,025
Ajax Mortgage Loan Trust: Series 2018-E, Class A, 4.38%, 06/25/58(b)(c)			2,904		2,935,138
Series 2018-F, Class A, 4.38%, 11/25/58(b)(c)(d)			3,137		3,160,590
Series 2018-G, Class A, 4.38%, 06/25/57(b)(c)(d)			3,139		3,158,301
Series 2019-E, Class A, 3.00%, 10/30/59			3,000		2,990,029
Series 2019-E, Class B, 4.88%, 10/30/59			280		278,277
Series 2019-E, Class C, 0.00%, 10/30/59(e)			720		326,507
Allegro CLO ll-S Ltd., Series 2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 4.43%, 10/21/28(a)(b)			1,000		991,454
ALM VIII Ltd., Series 2013-8A, Class CR, (LIBOR USD 3 Month + 3.95%), 6.25%, 10/15/28(a)(b)			1,000		993,232
ALM XVI Ltd.(a)(b):
Series 2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.20%, 07/15/27			1,200		1,183,990
Series 2015-16A, Class CR2, (LIBOR USD 3 Month + 2.70%), 5.00%, 07/15/27			1,000		987,227
AMMC CLO 19 Ltd., Series 2016-19A, Class D, (LIBOR USD 3 Month + 3.75%), 6.05%, 10/15/28(a)(b)			500		496,403
Anchorage Capital CLO 4-R Ltd.(a)(b):
Series 2014-4RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.11%, 01/28/31			1,000		963,931
Series 2014-4RA, Class D, (LIBOR USD 3 Month + 2.60%), 4.86%, 01/28/31			1,000		937,233
Anchorage Capital CLO Ltd., Series 2013-1A, Class CR, (LIBOR USD 3 Month + 3.20%), 5.50%, 10/13/30(a)(b)			1,000		971,908
Anchorage Capital Europe CLO 2 DAC, Series 2X, Class E, (EURIBOR 3 Month + 5.66%), 5.66%, 05/15/31(a)	EUR		140		150,401
Apidos CLO XX(a)(b):
Series 2015-20A, Class BRR, (LIBOR USD 3 Month + 1.95%), 4.27%, 07/16/31	USD		1,000		973,306
Series 2015-20A, Class CR, (LIBOR USD 3 Month + 2.95%), 5.27%, 07/16/31			1,500		1,453,523
Arbour CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 5.60%), 5.60%, 01/15/30(a)	EUR		183		194,649
Ares European CLO VIII BV, Series 8X, Class E, (EURIBOR 3 Month + 6.35%), 6.35%, 02/17/30(a)			200		218,950
Ares XLII CLO Ltd., Series 2017-42A, Class D, (LIBOR USD 3 Month + 3.45%), 5.73%, 01/22/28(a)(b)	USD		1,000		993,587
Ares XLIV CLO Ltd., Series 2017-44A, Class C, (LIBOR USD 3 Month + 3.45%), 5.75%, 10/15/29(a)(b)			1,000		981,682
Ares XLIX CLO Ltd., Series 2018-49A, Class D, (LIBOR USD 3 Month + 3.00%), 5.28%, 07/22/30(a)(b)			1,000		947,191
Ares XXVII CLO Ltd., Series 2013-2A, Class DR, (LIBOR USD 3 Month + 3.75%), 6.01%, 07/28/29(a)(b)			2,000		1,985,372
Ares XXXVIl CLO Ltd.(a)(b):
Series 2015-4A, Class BR, (LIBOR USD 3 Month + 1.80%), 4.10%, 10/15/30			250		242,222

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2015-4A, Class CR, (LIBOR USD 3 Month + 2.65%), 4.95%, 10/15/30	USD		1,000	$	951,478
Assurant CLO IV Ltd., Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.85%), 6.13%, 04/20/30(a)(b)			1,000		992,657
Atlas Senior Loan Fund X Ltd., Series 2018- 10A, Class D, (LIBOR USD 3 Month + 2.75%), 5.05%, 01/15/31(a)(b)			1,000		912,466
Atrium IX, Series 9A, Class DR, (LIBOR USD 3 Month + 3.60%), 5.74%, 05/28/30(a)(b)			1,000		983,005
Atrium XV, Series 15A, Class D, (LIBOR USD 3 Month + 3.00%), 5.26%, 01/23/31(a)(b)			500		482,194
Avoca CLO XV DAC, Series 15X, Class ER, (EURIBOR 3 Month + 4.13%), 4.13%, 04/15/31(a)	EUR		260		253,208
Benefit Street Partners CLO XII Ltd., Series 2017-12A, Class C, (LIBOR USD 3 Month + 3.05%), 5.35%, 10/15/30(a)(b)	USD		1,250		1,218,270
Cadogan Square CLO VIII DAC, Series 8X, Class E, (EURIBOR 3 Month + 6.30%), 6.30%, 01/15/30(a)	EUR		141		154,221
Cairn CLO IV BV, Series 2014-4X, Class ERR, (EURIBOR 3 Month + 5.88%), 5.88%, 04/30/31(a)			100		108,677
Carlyle Global Market Strategies CLO Ltd., Series 2016-3A, Class C, (LIBOR USD 3 Month + 4.00%), 6.28%, 10/20/29(a)(b)	USD		1,000		992,700
CBAM Ltd., Series 2017-3A, Class E1, (LIBOR USD 3 Month + 6.50%), 8.80%, 10/17/29(a)(b)			1,000		955,506
Cedar Funding II CLO Ltd., Series 2013-1A, Class DR, (LIBOR USD 3 Month + 3.60%), 5.70%, 06/09/30(a)(b)			1,000		998,871
Cedar Funding IV CLO Ltd., Series 2014-4A, Class DR, (LIBOR USD 3 Month + 3.65%), 5.91%, 07/23/30(a)(b)			1,000		995,670
Cedar Funding X CLO Ltd., Series 2019-10A, Class D, (LIBOR USD 3 Month + 3.85%), 4.83%, 10/20/32(a)(b)			1,000		992,629
ClFC Funding Ltd.(a)(b):
Series 2013-4A, Class DRR, (LIBOR USD 3 Month + 2.80%), 5.06%, 04/27/31			1,000		943,116
Series 2017-1A, Class D, (LIBOR USD 3 Month + 3.50%), 5.78%, 04/23/29			1,000		993,515
Series 2017-5A, Class B, (LIBOR USD 3 Month + 1.85%), 4.15%, 11/16/30			1,500		1,454,483
CVC Cordatus Loan Fund VIII DAC, Series 8X, Class F, (EURIBOR 3 Month + 7.65%), 4.90%, 04/23/30(a)	EUR		113		118,463
Dryden 32 Euro CLO BV, Series 2014-32X, Class ER, (EURIBOR 3 Month + 5.29%), 5.29%, 08/15/31(a)			140		144,933
Dryden 50 Senior Loan Fund, Series 2017-50A, Class C, (LIBOR USD 3 Month + 2.25%), 4.55%, 07/15/30(a)(b)	USD		2,000		1,987,400
Galaxy XVIll CLO Ltd., Series 2018-28A, Class C, (LIBOR USD 3 Month + 1.95%), 4.25%, 07/15/31(a)(b)			500		482,555
GoldenTree Loan Management US CLO 1 Ltd., Series 2017-1A, Class D, (LIBOR USD 3 Month + 3.35%), 5.63%, 04/20/29(a)(b)			2,000		1,987,341
GoldenTree Loan Management US CLO 5 Ltd., Series 2019-5A, Class D, (LIBOR USD 3 Month + 3.85%), 6.04%, 10/20/32(a)(b)			1,000		995,211

16 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Greywolf CLO V Ltd., Series 2015-1A, Class CR, (LIBOR USD 3 Month + 3.00%), 5.28%, 01/27/31(a)(b)	USD		1,000	$	935,281
Harvest CLO XVI DAC, Series 16X, Class ER, (EURIBOR 3 Month + 5.57%), 5.57%, 10/15/31(a)	EUR		330		347,548
Madison Park Funding XV Ltd., Series 2014- 15A, Class CR, (LIBOR USD 3 Month + 3.45%), 5.71%, 01/27/26(a)(b)	USD		1,000		997,127
Mariner CLO LLC, Series 2015-1A, Class CR, (LIBOR USD 3 Month + 2.50%), 4.78%, 04/20/29(a)(b)			2,000		1,992,818
Neuberger Berman CLO XXII Ltd., Series 2016-22A, Class CR, (LIBOR USD 3 Month + 2.20%), 4.50%, 10/17/30(a)(b)			1,000		985,739
Neuberger Berman CLO XXIII Ltd., Series 2016-23A, Class DR, (LIBOR USD 3 Month + 2.90%), 5.20%, 10/17/27(a)(b)			500		486,902
OCP CLO Ltd.(a)(b):
Series 2013-4A, Class CR, (LIBOR USD 3 Month + 3.96%), 6.24%, 04/24/29			1,000		990,931
Series 2015-8A, Class CR, (LIBOR USD 3 Month + 2.80%), 5.10%, 04/17/27			500		493,400
OCP Euro CLO DAC(a):
Series 2017-2X, Class E, (EURIBOR 3 Month + 5.00%), 5.00%, 01/15/32	EUR		148		159,149
Series 2017-2X, Class F, (EURIBOR 3 Month + 6.40%), 6.40%, 01/15/32			100		101,337
OCP Euro DAC, Series 2017-1X, Class E, (EURIBOR 3 Month + 5.35%), 5.35%, 06/18/30(a)			150		161,263
Octagon Investment Partners 28 Ltd., Series 2016-1A, Class C1R, (LIBOR USD 3 Month + 2.25%), 4.53%, 10/24/30(a)(b)	USD		1,000		988,343
Octagon Loan Funding Ltd., Series 2014-1A, Class DRR, (LIBOR USD 3 Month + 2.90%), 5.02%, 11/18/31(a)(b)			500		472,878
OHA Credit Funding 4 Ltd., Series 2019-4A, Class D, (LIBOR USD 3 Month + 3.75%), 0.00%, 10/22/32(a)(b)			1,000		1,000,000
OHA Credit Partners XI Ltd., Series 2015-11A, Class DR, (LIBOR USD 3 Month + 2.95%), 5.23%, 01/20/32(a)(b)			500		468,923
Option One Mortgage Loan Trust, Series 2007- FXD1, Class 2A1, 5.87%, 01/25/37(f)			1,268		1,261,109
OZLM Funding IV Ltd., Series 2013-4A, Class BR, (LIBOR USD 3 Month + 2.20%), 4.48%, 10/22/30(a)(b)			1,000		973,504
OZLM VI Ltd.(a)(b):
Series 2014-6A, Class B1S, (LIBOR USD 3 Month + 2.10%), 4.40%, 04/17/31			1,000		967,066
Series 2014-6A, Class CS, (LIBOR USD 3 Month + 3.13%), 5.43%, 04/17/31			1,000		942,119
OZLME BV, Series 1X, Class ER, (EURIBOR 3 Month + 5.90%), 5.90%, 01/18/30(a)(d)	EUR		158		172,212
OZLME II DAC, Series 2X, Class E, (EURIBOR 3 Month + 4.90%), 4.90%, 10/15/30(a)			100		106,028
Palmer Square CLO Ltd.(a)(b):
Series 2013-2A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.50%, 10/17/31	USD		2,000		1,958,035
Series 2019-1A, Class B, (LIBOR USD 3 Month + 2.65%), 0.00%, 11/14/32			1,000		1,000,000
Series 2019-1A, Class C, (LIBOR USD 3 Month + 3.75%), 0.00%, 11/14/32			1,000		1,000,000

Security			Par (000)		Value
Asset-Backed Securities (continued)
Palmer Square Loan Funding Ltd., Series 2019-3A, Class A2, (LIBOR USD 3 Month + 1.60%), 3.79%, 08/20/27(a)(b)		USD		1,500	$	1,498,466
Park Avenue Institutional Advisers CLO Ltd., Series 2019-1A, Class C, (LIBOR USD 3 Month + 3.85%), 6.41%, 05/15/32(a)(b)				1,500		1,471,675
Progress Residential Trust, Series 2019-SFR4, Class E, 3.44%, 11/17/36(b)				3,000		2,999,900
Regata XII Funding Ltd., Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.75%), 0.00%, 10/15/32(a)(b)				1,000		1,000,000
Regatta VII Funding Ltd., Series 2016-1A, Class DR, (LIBOR USD 3 Month + 2.75%), 4.91%, 12/20/28(a)(b)				1,000		948,467
Rockford Tower CLO Ltd.(a)(b):
Series 2017-3A, Class A,(LIBORUSD3 Month + 1.19%), 3.47%, 10/20/30				1,500		1,497,111
Series 2018-2A, Class C, (LIBOR USD 3 Month + 2.20%), 4.48%, 10/20/31				500		494,566
Series 2018-2A, Class D, (LIBOR USD 3 Month + 3.10%), 5.38%, 10/20/31				500		476,890
RRCLO 1X, 5.95%,04/15/32(c)		EUR		300		323,149
Texas Competitive Electric Holdings Co. LLC, Escrow, 5.10%, 10/10/17(d)(g)(h)		USD		815		—
TICP CLO IX Ltd., Series 2017-9A, Class D, (LIBOR USD 3 Month + 2.90%), 5.18%, 01/20/31(a)(b)				1,000		947,006
TICP CLO VII Ltd., Series 2017-7A, Class C, (LIBOR USD 3 Month + 2.60%), 4.90%, 07/15/29(a)(b)				1,000		1,003,797
TICP CLO XI Ltd.(a)(b):
Series 2018-11A, Class C, (LIBOR USD 3 Month + 2.15%), 4.43%, 10/20/31				600		587,553
Series 2018-11A, Class D, (LIBOR USD 3 Month + 3.05%), 5.33%, 10/20/31				550		524,329
Unique Pub Finance Co. plc (The), Series A4, 5.66%, 06/30/27		GBP		65		89,479
Vericrest Opportunity Loan Trust, Series 2019-NPL2, Class A1, 3.97%, 02/25/49(b)(f)		USD		3,015		3,025,053
Voya CLO Ltd., Series 2017-1A, Class C, (LIBOR USD 3 Month + 3.33%), 5.63%, 04/17/30(a)(b)				1,000		969,979
York CLO 1 Ltd., Series 2014-1A, Class DRR, (LIBOR USD 3 Month + 3.01%), 5.29%, 10/22/29(a)(b)				1,000		987,808
Total Asset-Backed Securities — 7.8% (Cost: $89,314,061)						88,145,267
	Shares
Common Stocks — 0.1%
Chemicals — 0.1%
Element Solutions, Inc.(h)				48,614		494,891
Commercial Services & Supplies — 0.0%
Preston Holdings LLC(d)(h)				1,227		6,675
Containers & Packaging — 0.0%
Crown Holdings, Inc.(h)				2,003		132,318
Diversified Telecommunication Services — 0.0%
Telecom Italia SpA				243,988		133,461
Electric Utilities — 0.0%
TexGen Power LLC(d)(h)				1,424		61,232

S C H E D U L E S   O F   I N V E S T M E N T S 17

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Shares		Value
Equity Real Estate Investment Trusts (REITs) — 0.0%
Gaming and Leisure Properties, Inc.			2,808	$	107,378
Health Care Providers & Services — 0.0%
New Millennium Holdco, Inc.(h)			3,880		27
Hotels, Restaurants & Leisure — 0.0%
Stars Group, Inc. (The)(h)			5,409		80,960
Machinery — 0.0%(h)
AFGlobal Corp.(d)			897		—
Ameriforge Group, Inc.			283		15,565
					15,565
Marine — 0.0%
Projector SA(d)(h)			1,227		—
Media — 0.0%
Clear Channel Outdoor Holdings, Inc.(h)			76,920		193,838
iHeartMedia, Inc., Class A(h)			797		11,955
SES SA, FDR			4,105		74,824
					280,617
Metals & Mining — 0.0%
Constellium SE, Class A(h)			22,768		289,381
Software — 0.0%
Avaya Holdings Corp.(h)			11		113
Total Common Stocks — 0.1% (Cost: $1,698,155)					1,602,618
	Par                 (000)
Corporate Bonds — 47.8%
Aerospace & Defense — 1.3%
Arconic, Inc., 5.13%, 10/01/24			723		769,995
BBA US Holdings, Inc., 5.38%, 05/01/26(b)			388		407,400
Bombardier, Inc.(b):
8.75%, 12/01/21			351		379,080
5.75%, 03/15/22			46		46,748
6.00%, 10/15/22			19		18,976
6.13%, 01/15/23			202		205,737
7.50%, 12/01/24			171		171,000
7.50%, 03/15/25			1,379		1,377,276
7.88%, 04/15/27			1,225		1,219,916
BWX Technologies, Inc., 5.38%, 07/15/26(b)			467		490,934
F-Brasile SpA, Series XR, 7.38%, 08/15/26(b)			400		416,000
Kratos Defense & Security Solutions, Inc., 6.50%, 11/30/25(b)			689		735,507
L3Harris Technologies, Inc., 4.40%, 06/15/28(b)			1,000		1,123,442
TransDigm UK Holdings plc, 6.88%, 05/15/26			452		485,900
TransDigm, Inc.:
6.00%, 07/15/22			127		128,905
6.50%, 05/15/25			121		125,538
6.25%, 03/15/26(b)			5,087		5,462,166
Triumph Group, Inc., 6.25%, 09/15/24(b)			275		286,055
United Technologies Corp.:
3.35%, 08/16/21			290		297,489
4.63%, 11/16/48			120		149,822
					14,297,886
Air Freight & Logistics — 0.0%
FedEx Corp., 4.05%, 02/15/48			155		152,013
XPO Logistics, Inc., 6.75%, 08/15/24(b)			161		174,685
					326,698

Security		Par (000)		Value
Airlines — 0.0%
ANA Holdings, Inc.(e)(i):
0.00%, 09/16/22	JPY		10,000	$	91,334
0.00%, 09/19/24			10,000		91,889
US Airways Pass-Through Trust, Series 2013- 1, Class B, 5.38%, 11/15/21	USD		101		104,933
					288,156
Auto Components — 0.6%
Allison Transmission, Inc.(b):
5.00%, 10/01/24			9		9,197
5.88%, 06/01/29			283		307,055
GKN Holdings Ltd., 4.63%, 05/12/32(f)	GBP		200		249,594
Icahn Enterprises LP:
6.25%, 02/01/22	USD		279		286,254
6.75%, 02/01/24			490		509,600
4.75%, 09/15/24(b)			65		64,935
6.38%, 12/15/25			219		230,281
6.25%, 05/15/26(b)			695		728,882
Panther BF Aggregator 2 LP:
4.38%, 05/15/26	EUR		234		259,830
6.25%, 05/15/26(b)	USD		1,219		1,282,997
8.50%, 05/15/27(b)			1,339		1,355,738
Weichai International Hong Kong Energy Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 6.08%), 3.75%(a)(j)			200		199,500
ZF North America Capital, Inc., 4.00%, 04/29/20(b)			750		754,883
					6,238,746
Automobiles — 0.2%
Daimler Finance North America LLC, 3.35%, 05/04/21(b)			750		762,356
General Motors Co., 5.00%, 10/01/28			500		531,177
Tesla, Inc., 5.30%, 08/15/25(b)			292		262,435
Volkswagen Group of America Finance LLC, 2.70%, 09/26/22(b)			305		306,464
					1,862,432
Banks — 3.6%
Allied Irish Banks plc, (EUR Swap Annual 5 Year + 7.34%), 7.38%(a)(j)	EUR		200		231,309
Banco Bilbao Vizcaya Argentaria SA, 1.00%, 06/21/26			600		677,764
Banco de Credito del Peru, (LIBOR USD 3 Month + 7.71%), 6.87%, 09/16/26(a)	USD		630		674,691
Banco de Sabadell SA, (EUR Swap Annual 5 Year + 6.41%), 6.50%(a)(j)	EUR		200		217,567
Banco General SA, 4.13%, 08/07/27	USD		500		522,893
Banco Inbursa SA Institucion de Banca Multiple, 4.13%, 06/06/24			653		669,223
Banco Inbursa SA Institucion De Banca Multiple Grupo Financiero Inbursa, 4.38%, 04/11/27			170		172,178
Banco Mercantil del Norte SA(a)(b)(j):
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.97%), 6.75%			340		338,525
(US Treasury Yield Curve Rate T Note Constant Maturity 10 Year + 5.47%), 7.50%			340		344,590
Banco Santander SA(a)(j):
(EUR Swap Annual 5 Year + 6.80%), 6.75%	EUR		200		236,765
(EUR Swap Annual 5 Year + 4.10%), 4.75%			200		211,178
Bangkok Bank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.90%), 3.73%, 09/25/34(a)	USD		1,100		1,115,070

18 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
Bank of America Corp.:
Series L, 4.18%,11/25/27	USD		2,000	$	2,159,032
(LIBOR USD 3 Month + 1.18%), 3.19%, 07/23/30(a)			850		876,623
Bank of East Asia Ltd. (The), (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.26%), 5.87%(a)(j)			1,220		1,246,230
Bank of Ireland Group plc, 1.38%, 08/29/23	EUR		150		167,821
Bankia SA(a)(j):
(EUR Swap Annual 5 Year + 5.82%), 6.00%			200		225,062
(EUR Swap Annual 5 Year + 6.22%), 6.37%			200		230,429
Barclays plc:
4.38%, 09/11/24	USD		200		206,789
(EUR Swap Annual 1 Year + 0.78%), 1.37%, 01/24/26(a)	EUR		375		418,216
(LIBOR USD 3 Month + 3.05%), 5.09%, 06/20/30(a)	USD		300		312,808
BB&T Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.00%), 4.80%(a)(j)			1,960		1,959,980
BBVA Bancomer SA, 4.38%, 04/10/24			650		682,500
Burgan Bank SAK, (USD Swap Semi 5 Year + 4.01%), 5.75%(a)(j)			400		398,300
Burgan Senior SPC Ltd., 3.13%, 09/14/21			500		501,250
CaixaBank SA(a)(j):
(EUR Swap Annual 5 Year + 6.50%), 6.75%	EUR		200		239,189
(EUR Swap Annual 5 Year + 4.50%), 5.25%			400		422,901
CBQ Finance Ltd., 3.25%, 06/13/21	USD		300		301,781
China Construction Bank Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.88%), 4.25%, 02/27/29(a)			495		518,203
CIT Group, Inc.:
5.00%, 08/01/23			642		683,730
6.13%, 03/09/28			130		152,100
Citigroup, Inc.:
(LIBOR USD 3 Month + 1.02%), 4.04%, 06/01/24(a)			500		528,315
(LIBOR USD 3 Month + 0.90%), 3.35%, 04/24/25(a)			610		632,027
4.30%, 11/20/26			500		538,619
Commerzbank AG:
8.13%, 09/19/23			200		233,218
4.00%, 03/23/26	EUR		150		183,752
Commonwealth Bank of Australia, 3.74%, 09/12/39(b)	USD		560		557,879
Credit Agricole SA(a)(j):
(EUR Swap Annual 5 Year + 5.12%), 6.50%	EUR		200		235,412
(USD Swap Semi 5 Year + 6.19%), 8.12%	USD		200		235,250
Discover Bank:
3.20%, 08/09/21			1,000		1,015,105
2.45%, 09/12/24			620		618,544
(USD Swap Semi 5 Year + 1.73%), 4.68%, 08/09/28(a)			465		486,155
Hongkong & Shanghai Banking Corp. Ltd (The), Series 3H, (LIBOR USD 3 Month + 0.00%), 2.50%(a)(j)			350		258,998
HSBC Holdings plc(a):
(LIBOR USD 3 Month + 0.65%), 2.78%, 09/11/21			1,000		1,001,366
(LIBOR USD 3 Month + 0.99%), 3.95%, 05/18/24			285		298,267
(LIBOR USD 3 Month + 1.61%), 3.97%, 05/22/30			510		544,523
ICICI Bank Ltd., 4.00%, 03/18/26			600		627,937

Security		Par (000)		Value
Banks (continued)
IKB Deutsche Industriebank AG, (EUR Swap Annual 5 Year + 3.62%), 4.00%, 01/31/28(a)	EUR		200	$	206,219
ING Groep NV, (USD Swap Semi 5 Year + 4.20%), 6.75%(a)(j)	USD		325		341,170
Intercorp Financial Services, Inc., 4.13%, 10/19/27			500		515,313
Intercorp Peru Ltd., 3.88%, 08/15/29(b)			351		352,755
Intesa Sanpaolo SpA, (EUR Swap Annual 5 Year + 7.19%), 7.75%(a)(j)	EUR		200		256,399
JPMorgan Chase & Co.:
(LIBOR USD 3 Month + 0.89%), 3.15%, 07/23/24(a)	USD		1,000		1,003,574
3.63%, 12/01/27			300		315,840
(SOFR + 1.51%), 2.74%, 10/15/30(a)			1,500		1,489,464
Series W, (LIBOR USD 3 Month + 1.00%), 3.16%, 05/15/47(a)			1,000		790,000
Kasikornbank PCL, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.70%), 3.34%, 10/02/31(a)			830		823,873
Kookmin Bank, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.64%), 4.35%(a)(j)			500		511,875
National Westminster Bank plc, Series C, (LIBOR USD 3 Month + 0.25%), 2.37%			200		161,400
Nordea Bank Abp, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.11%), 6.63%(a)(b)(j)			585		629,606
Royal Bank of Scotland Group plc(a):
(USD Swap Semi 5 Year + 7.60%), 8.62%(j)			995		1,065,496
(LIBOR USD 3 Month + 1.76%), 4.27%, 03/22/25			630		658,987
Samba Funding Ltd., 2.75%, 10/02/24			1,000		993,500
Santander UK plc, 5.00%, 11/07/23(b)			1,000		1,061,860
Shinhan Financial Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.05%), 5.87%(a)(j)			1,000		1,074,688
Shizuoka Bank Ltd. (The), (LIBOR USD 3 Month - 0.50%), 1.78%, 01/25/23(a)(i)			100		94,857
Societe Generale SA(a)(j):
(USD Swap Semi 5 Year + 6.24%), 7.38%(b)			200		210,420
(USD Swap Rate 5 Year + 5.87%), 8.00%			200		225,250
UniCredit SpA(a)(j):
(EUR Swap Annual 5 Year + 6.10%), 6.75%	EUR		200		226,710
(EUR Swap Annual 5 Year + 9.30%), 9.25%			200		251,233
(EURIBOR Swap Rate 5 Year + 7.33%), 7.50%			200		242,487
Wells Fargo & Co., 5.38%, 11/02/43	USD		500		627,270
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.65%), 2.08%, 09/09/22(a)			2,000		1,995,394
					41,235,704
Beverages — 0.1%
Anheuser-Busch InBev Worldwide, Inc., 4.60%, 04/15/48			750		865,006
Coca-Cola European Partners plc, (EURIBOR 3 Month + 0.18%), 0.00%, 11/16/21(a)	EUR		100		109,396
Coca-Cola Icecek A/S, 4.22%, 09/19/24	USD		250		247,874
					1,222,276
Biotechnology — 0.1%
AbbVie, Inc.:
3.38%, 11/14/21			680		696,953
4.88%, 11/14/48			500		551,618
					1,248,571

S C H E D U L E S   O F   I N V E S T M E N T S 19

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Building Products — 0.2%
Advanced Drainage Systems, Inc., 5.00%, 09/30/27(b)	USD		206	$	208,830
Builders FirstSource, Inc., 6.75%, 06/01/27(b)			62		66,805
CPG Merger Sub LLC, 8.00%, 10/01/21(b)			3		3,000
JELD-WEN, lnc.(b):
4.63%, 12/15/25			151		151,571
4.88%, 12/15/27			6		5,940
LIXIL Group Corp.(e)(i):
0.00%, 03/04/20	JPY		50,000		456,779
0.00%, 03/04/22			30,000		269,605
Masonite International Corp.(b):
5.75%, 09/15/26	USD		25		26,375
5.38%, 02/01/28			76		79,230
PGT Escrow Issuer, Inc., 6.75%, 08/01/26(b)			43		46,333
Standard Industries, Inc.(b):
5.38%, 11/15/24			205		211,150
6.00%, 10/15/25			497		521,085
					2,046,703
Capital Markets — 1.4%
ADCB Finance Cayman Ltd., 4.00%, 03/29/23(b)			240		251,175
CCTI Ltd., 3.63%, 08/08/22			710		702,456
Cerah Capital Ltd.,0.00%, 08/08/24(e)(i)			1,300		1,230,125
Cindai Capital Ltd., 0.00%, 02/08/23(e)(i)			900		870,882
Coastal Emerald Ltd.:
5.95%, 01/13/20			800		806,000
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 7.45%), 4.30%(a)(j)			595		594,108
Credit Suisse Group AG(a):
(USD Swap Semi 5 Year + 4.60%), 7.50%(b)(j)			200		213,750
(USD Swap Semi 5 Year + 3.46%), 6.25%(j)			200		211,500
(SOFR + 1.56%), 2.59%, 09/11/25(b)			1,500		1,485,152
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.82%), 6.37%(b)(j)			350		362,250
Deutsche Bank AG, 3.15%, 01/22/21			500		499,653
Goldman Sachs Bank USA, (SOFR + 0.60%), 2.71%, 05/24/21(a)			1,870		1,873,059
Huarong Finance 2019 Co. Ltd., 4.50%, 05/29/29			500		525,938
Hubei Science & Technology Investment Group Hong Kong Ltd., 4.38%, 03/05/21			200		201,500
Joy Treasure Assets Holdings, Inc.:
4.50%, 03/20/29			200		215,000
3.50%, 09/24/29			815		808,707
Morgan Stanley, (SOFR + 1.15%), 2.72%, 07/22/25(a)			1,040		1,050,419
MSCI, Inc.(b):
5.25%, 11/15/24			70		72,275
4.75%, 08/01/26			24		25,140
Poseidon Finance 1 Ltd., 0.00%, 02/01/25(e)(i)			1,490		1,475,477
SBI Holdings, Inc., 0.00%, 09/13/23(e)(i)	JPY		110,000		1,060,578
SURA Asset Management SA, 4.88%, 04/17/24	USD		400		429,750
UBS AG, (EURIBOR 3 Month + 0.50%), 0.12%, 04/23/21(a)	EUR		300		328,833
Xi Yang Overseas Ltd.,4.30%,06/05/24	USD		355		361,759
					15,655,486
Chemicals — 1.1%
Atotech Alpha 2 BV, 8.75%, (8.75% Cash or 9.50% PIK), 06/01/23(b)(k)			210		208,425
Atotech Alpha 3 BV, 6.25%, 02/01/25(b)			1,542		1,549,710
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			300		309,750

Security		Par (000)		Value
Chemicals (continued)
Blue Cube Spinco LLC:
9.75%, 10/15/23	USD		141	$	153,690
10.00%, 10/15/25			649		726,450
Braskem Netherlands Finance BV, 3.50%, 01/10/23			500		500,750
Chemours Co. (The):
6.63%, 05/15/23			293		289,337
5.38%, 05/15/27			145		125,067
CNAC HK Synbridge Co. Ltd., 5.00%, 05/05/20			730		737,300
Dow Chemical Co. (The), 5.55%, 11/30/48(b)			125		151,629
Element Solutions, Inc., 5.88%, 12/01/25(b)			1,456		1,521,371
Equate Petrochemical BV, 4.25%, 11/03/26			400		430,375
Fufeng Group Ltd., 5.88%, 08/28/21			200		207,776
Gates Global LLC, 6.00%, 07/15/22(b)			423		421,414
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			127		129,540
Mitsubishi Chemical Holdings Corp.(e)(i):
0.00%, 03/30/22	JPY		40,000		370,721
0.00%, 03/29/24			40,000		372,621
Monitchem HoldCo 2 SA, 9.50%, 09/15/26	EUR		100		106,327
Monitchem HoldCo 3 SA:
(EURIBOR 3 Month + 5.25%), 4.86%, 03/15/25(a)			224		245,418
5.25%, 03/15/25			296		323,432
NOVA Chemicals Corp., 4.88%, 06/01/24(b)	USD		21		21,595
Pearl Holding III Ltd., 9.50%, 12/11/22			1,000		725,000
PQ Corp.(b):
6.75%, 11/15/22			450		465,750
5.75%, 12/15/25			470		484,100
Rock International Investment, Inc., 6.63%, 03/27/20			1,000		744,450
TPC Group, Inc., 10.50%, 08/01/24(b)			208		216,840
UPLCorp.Ltd.,4.50%, 03/08/28			200		207,345
W.R. Grace & Co.(b):
5.13%, 10/01/21			250		259,713
5.63%, 10/01/24			200		215,500
					12,221,396
Commercial Services & Supplies — 0.8%
ACCO Brands Corp., 5.25%, 12/15/24(b)			64		66,240
ADT Security Corp. (The):
3.50%, 07/15/22			36		36,135
4.13%, 06/15/23			180		182,700
4.88%, 07/15/32(b)			591		517,125
Advanced Disposal Services, Inc., 5.63%, 11/15/24(b)			54		56,362
APX Group, Inc.:
8.75%, 12/01/20			146		143,445
7.88%, 12/01/22			123		122,268
8.50%, 11/01/24(b)			76		76,760
Aramark Services, Inc.:
5.00%, 04/01/25(b)			229		236,442
4.75%, 06/01/26			158		162,345
5.00%, 02/01/28(b)			815		847,600
Beijing Environment Bvi Co. Ltd., 5.30%, 10/18/21			1,745		1,800,077
Clean Harbors, Inc.(b):
4.88%, 07/15/27			249		259,894
5.13%, 07/15/29			270		286,200
GFL Environmental, lnc.(b):
7.00%, 06/01/26			219		230,498
8.50%, 05/01/27			663		735,101
Harland Clarke Holdings Corp., 8.38%, 08/15/22(b)			110		90,200
IAA, Inc., 5.50%, 06/15/27(b)			262		276,410

20 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Services & Supplies (continued)
Intrum AB, 3.50%, 07/15/26	EUR		151	$	167,216
KAR Auction Services, Inc., 5.13%, 06/01/25(b)	USD		528		546,480
Matthews International Corp., 5.25%, 12/01/25(b)			161		152,547
Mobile Mini, Inc., 5.88%, 07/01/24			559		575,770
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25(b)			21		20,737
Prime Security Services Borrower LLC(b):
5.25%, 04/15/24			469		481,452
5.75%, 04/15/26			374		389,446
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25(b)			414		432,113
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26	EUR		100		117,701
Waste Pro USA, Inc., 5.50%, 02/15/26(b)	USD		222		228,873
					9,238,137
Communications Equipment — 0.2%
CommScope, Inc.(b):
5.50%, 03/01/24			648		666,630
6.00%, 03/01/26			216		223,517
Nokia OYJ:
3.38%, 06/12/22			43		43,645
4.38%, 06/12/27			63		65,835
6.63%, 05/15/39			448		526,400
ViaSat, Inc., 5.63%, 04/15/27(b)			475		498,750
					2,024,777
Construction & Engineering — 0.3%
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)			222		209,790
China Railway Construction Corp. Ltd., 1.50%, 12/21/21(i)	CNY		4,000		558,839
China Shandong International Economic & Technical Finance 1 Ltd., 4.00%, 12/21/20	USD		600		591,000
China Singyes Solar Technologies Holdings Ltd.(g)(h):
6.75%, 10/17/18			500		417,500
0.00%, 02/15/19(l)			400		327,000
Delhi International Airport Ltd., 6.45%, 06/04/29			525		555,844
Ferrovial Netherlands BV, (EUR Swap Annual 5 Year + 2.13%), 2.12%(a)(j)	EUR		200		212,600
Leader Goal International Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 6.92%), 4.25%(a)(j)	USD		200		203,187
New Enterprise Stone & Lime Co., Inc.(b):
10.13%, 04/01/22			148		152,070
6.25%, 03/15/26			70		71,575
Zhengzhou Real Estate Group Co. Ltd., 3.95%, 10/09/22			460		459,983
					3,759,388
Construction Materials — 0.1%
Inversiones CMPC SA, 4.75%, 09/15/24			600		639,750
Taiwan Cement Corp., 0.00%, 12/10/23(e)(i)			800		931,454
					1,571,204
Consumer Finance — 1.1%
AerCap Ireland Capital DAC, 4.50%, 05/15/21			200		206,475
Ally Financial, Inc.:
4.13%, 02/13/22			7		7,157
8.00%, 11/01/31			2,556		3,533,670
CDBL Funding 1,3.00%, 04/24/23			800		802,000
Credit Acceptance Corp., 6.63%, 03/15/26(b)			64		68,480
Ford Motor Credit Co. LLC:
5.88%, 08/02/21			1,000		1,047,450
4.39%, 01/08/26			500		497,577

Security		Par (000)		Value
Consumer Finance (continued)
General Motors Financial Co., Inc.:
3.55%, 04/09/21	USD		140	$	142,039
(EURIBOR 3 Month + 0.68%), 0.28%, 05/10/21(a)	EUR		100		109,276
3.20%, 07/06/21	USD		1,000		1,010,256
4.20%, 11/06/21			475		490,036
Global Aircraft Leasing Co. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 09/15/24(b)(k)			351		354,510
Hanhui International Ltd., 4.37%, 08/22/22			570		573,562
LeasePlan Corp. NV(a):
(EURIBOR 3 Month + 0.50%), 0.13%, 01/25/21	EUR		200		218,377
(EURIBOR Swap Rate 5 Year + 7.56%), 7.38%(j)			200		233,415
Mulhacen Pte. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 08/01/23(k)			373		336,675
Navient Corp.:
5.00%, 10/26/20	USD		29		29,362
6.63%, 07/26/21			188		197,400
6.50%, 06/15/22			12		12,780
5.50%, 01/25/23			400		413,000
7.25%, 09/25/23			139		151,093
6.13%, 03/25/24			97		100,607
5.88%, 10/25/24			51		51,383
6.75%, 06/25/25			40		41,250
6.75%, 06/15/26			149		152,725
New Lion Bridge Co. Ltd., 9.75%, 10/10/20			430		384,313
Springleaf Finance Corp.:
6.13%, 05/15/22			22		23,485
6.88%, 03/15/25			209		230,292
7.13%, 03/15/26			494		548,007
6.63%, 01/15/28			208		223,662
Synchrony Financial, 2.85%, 07/25/22			245		247,062
Volkswagen Bank GmbH, (EURIBOR 3 Month + 0.42%), 0.00%, 06/15/21(a)	EUR		100		109,010
Volkswagen International Finance NV, Series NC6, (EUR Swap Annual 6 Year + 2.97%), 3.38%(a)(j)			200		228,540
Volkswagen Leasing GmbH, 1.13%, 04/04/24			200		223,410
					12,998,336
Containers & Packaging — 0.7%
Ardagh Packaging Finance plc(b):
4.63%, 05/15/23	USD		862		882,472
4.13%, 08/15/26			200		201,250
Berry Global, Inc., 4.88%, 07/15/26(b)			351		362,811
Crown Americas LLC:
4.75%, 02/01/26			570		596,362
4.25%, 09/30/26			35		36,225
Crown European Holdings SA, 2.25%, 02/01/23(b)	EUR		100		114,761
Graphic Packaging International LLC, 4.75%, 07/15/27(b)	USD		159		166,950
Greif, Inc., 6.50%, 03/01/27(b)			41		43,481
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)			257		267,923
LABL Escrow Issuer LLC, 6.75%, 07/15/26(b)			277		288,773
Mauser Packaging Solutions Holding Co.:
4.75%, 04/15/24	EUR		149		167,883
5.50%, 04/15/24(b)	USD		1,444		1,483,638
Reynolds Group Issuer, Inc.(b):
(LIBOR USD 3 Month + 3.50%), 5.80%, 07/15/21(a)			205		205,256
5.13%, 07/15/23			433		443,284
7.00%, 07/15/24			591		612,424

S C H E D U L E S   O F   I N V E S T M E N T S 21

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Containers & Packaging (continued)
Sealed Air Corp., 6.88%, 07/15/33(b)	USD		139	$	162,630
Trivium Packaging Finance BV(b)(f):
5.50%, 08/15/26			787		827,294
8.50%, 08/15/27			1,058		1,143,963
					8,007,380
Distributors — 0.2%(b)
American Builders & Contractors Supply Co., Inc.:
5.75%, 12/15/23			349		359,470
5.88%, 05/15/26			677		709,157
Core & Main Holdings LP, 8.63%, (8.63% Cash or 9.38% PIK), 09/15/24(k)			365		367,738
Core & Main LP, 6.13%,08/15/25			1,095		1,092,262
Performance Food Group, Inc., 5.50%, 10/15/27			214		225,235
					2,753,862
Diversified Consumer Services — 0.4%
BidFair MergeRight, Inc., 7.38%, 10/15/27(b)			300		305,646
Bright Scholar Education Holdings Ltd., 7.45%, 07/31/22			1,035		1,059,362
China Education Group Holdings Ltd., 2.00%, 03/28/24(i)	HKD		9,000		1,218,629
frontdoor, Inc., 6.75%, 08/15/26(b)	USD		696		762,134
Graham Holdings Co., 5.75%, 06/01/26(b)			308		331,100
Laureate Education, Inc., 8.25%, 05/01/25(b)			42		45,675
Service Corp. International, 5.13%, 06/01/29			304		324,900
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			714		740,775
					4,788,221
Diversified Financial Services — 1.0%
Allied Universal Holdco LLC(b):
6.63%, 07/15/26			1,041		1,099,556
9.75%, 07/15/27			78		81,286
Arrow Global Finance plc:
5.13%, 09/15/24	GBP		100		122,238
(EURIBOR 3 Month + 3.75%), 3.75%, 03/01/26(a)	EUR		100		108,995
Cabot Financial Luxembourg SA, 7.50%, 10/01/23	GBP		300		382,177
China Huadian Overseas Development Management Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.78%), 4.00%(a)(j)	USD		685		694,847
CK Hutchison International 16 Ltd., 2.75%, 10/03/26(b)			500		500,156
Fairstone Financial, Inc., 7.88%, 07/15/24(b)			54		56,396
Garfunkelux Holdco 3 SA:
7.50%, 08/01/22	EUR		330		341,872
(EURIBOR 3 Month + 4.50%), 4.50%, 09/01/23(a)			110		105,507
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20	USD		1,500		1,496,381
Grupo de Inversiones Suramericana SA, 5.70%, 05/18/21			371		387,927
HBOS Capital Funding LP, 6.85%(j)			416		422,240
LHC3 plc, 4.13%, (4.13% Cash or 9.00% PIK), 08/15/24(k)	EUR		553		626,699
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26			696		816,297
6.25%, 05/15/26(b)	USD		1,348		1,445,717
6.88%, 11/15/26	EUR		194		236,084
8.25%, 11/15/26(b)	USD		946		1,044,148

Security		Par (000)		Value
Diversified Financial Services (continued)
Verscend Escrow Corp., 9.75%, 08/15/26(b)	USD		1,174	$	1,250,157
					11,218,680
Diversified Telecommunication Services — 2.3%
Altice France SA:
6.25%, 05/15/24(b)			123		126,936
7.38%, 05/01/26(b)			1,454		1,558,993
5.88%, 02/01/27	EUR		250		301,395
8.13%, 02/01/27(b)	USD		1,246		1,375,273
5.50%, 01/15/28(b)			774		783,752
Arqiva Broadcast Finance plc, 6.75%, 09/30/23	GBP		100		131,094
AT&T, Inc.:
3.60%, 07/15/25	USD		350		368,436
4.50%, 03/09/48			1,000		1,075,631
CCO Holdings LLC(b):
4.00%, 03/01/23			211		214,429
5.75%, 02/15/26			152		160,664
5.13%, 05/01/27			1,226		1,279,637
5.00%, 02/01/28			82		84,768
5.38%, 06/01/29			1,562		1,663,530
CenturyLink, Inc.:
Series W, 6.75%, 12/01/23			1,251		1,369,845
Series Y, 7.50%, 04/01/24			62		69,338
5.63%, 04/01/25			846		877,725
Series P, 7.60%, 09/15/39			82		79,950
Series U, 7.65%, 03/15/42			82		79,745
Cincinnati Bell, Inc.(b):
7.00%, 07/15/24			345		319,125
8.00%, 10/15/25			28		24,500
DKT Finance ApS:
7.00%, 06/17/23	EUR		333		388,298
9.38%, 06/17/23(b)	USD		200		214,900
Embarq Corp., 8.00%, 06/01/36			196		193,795
Frontier Communications Corp.(b):
8.50%, 04/01/26			121		120,988
8.00%, 04/01/27			1,401		1,479,456
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			923		861,067
8.50%, 10/15/24(b)			412		414,962
9.75%, 07/15/25(b)			822		858,579
Level 3 Financing, Inc.:
5.63%, 02/01/23			11		11,137
5.13%, 05/01/23			42		42,435
5.38%, 05/01/25			6		6,215
5.25%, 03/15/26			521		541,762
4.63%, 09/15/27(b)			174		175,575
Level 3 Parent LLC, 5.75%, 12/01/22			22		22,088
Ooredoo International Finance Ltd., 3.75%, 06/22/26			600		630,750
Orange SA:
0.00%, 09/04/26	EUR		500		537,198
0.50%, 09/04/32			300		318,242
Qualitytech LP, 4.75%, 11/15/25(b)	USD		499		513,970
Qwest Corp., 6.75%, 12/01/21			7		7,565
Sable International Finance Ltd., 5.75%, 09/07/27(b)			200		206,690
Sprint Capital Corp.:
6.88%, 11/15/28			320		348,864
8.75%, 03/15/32			355		437,875
TDC A/S, 6.88%, 02/23/23(f)	GBP		200		280,047
Telecom Italia Capital SA:
6.38%, 11/15/33	USD		31		34,100
6.00%, 09/30/34			290		308,850
7.20%, 07/18/36			11		12,815
7.72%, 06/04/38			35		42,350

22 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		100	$	161,462
Telecom Italia SpA:
1.13%, 03/26/22(i)			100		109,487
5.30%, 05/30/24(b)	USD		701		755,994
3.00%, 09/30/25	EUR		100		116,249
2.38%, 10/12/27			300		334,034
Telesat Canada(b):
8.88%, 11/15/24	USD		74		79,291
6.50%, 10/15/27			117		118,901
Verizon Communications, Inc.:
1.38%, 10/27/26	EUR		150		175,073
3.88%, 02/08/29	USD		325		356,644
4.50%, 08/10/33			500		580,570
2.88%, 01/15/38	EUR		150		202,443
5.50%, 03/16/47	USD		225		296,959
5.01%, 04/15/49			290		364,624
Virgin Media Finance plc, 5.75%, 01/15/25(b)			862		887,860
Virgin Media Secured Finance plc:
5.50%, 08/15/26(b)			200		209,810
6.25%, 03/28/29	GBP		360		470,303
					26,175,043
Electric Utilities — 0.6%
ContourGlobal Power Holdings SA: 4.13%, 08/01/25	EUR		227		262,236
Duke Energy Corp., 3.95%, 08/15/47	USD		750		802,709
Edison International, 5.75%, 06/15/27			25		28,069
Enel Finance International NV, 4.25%, 09/14/23(b)			595		631,900
Exelon Corp., 4.45%, 04/15/46			500		565,354
Huachen Energy Co. Ltd., 6.63%, 05/18/20(h)			700		404,906
LLPL Capital Pte. Ltd., 6.88%, 02/04/39			469		543,159
Mong Duong Finance Holdings BV, 5.13%, 05/07/29			575		581,469
Naturgy Finance BV:
(EUR Swap Annual 9 Year + 3.08%), 3.38%(a)(j)	EUR		100		116,611
1.88%, 10/05/29			100		124,546
NextEra Energy Operating Partners LP(b):
4.25%, 07/15/24	USD		455		468,650
4.25%, 09/15/24			60		61,875
4.50%, 09/15/27			284		290,390
Oncor Electric Delivery Co. LLC, 3.10%, 09/15/49(b)			165		165,339
Tohoku Electric Power Co., Inc., 0.00%, 12/03/20(e)(i)	JPY		50,000		456,537
Virginia Electric & Power Co., Series B, 3.80%, 09/15/47	USD		500		541,312
Vistra Operations Co. LLC(b):
5.63%, 02/15/27			156		164,276
4.30%, 07/15/29			711		729,491
					6,938,829
Electrical Equipment — 0.2%
Bizlink Holding, Inc., 0.00%, 02/01/23(e)(i)			500		527,229
Sensata Technologies BV(b):
5.63%, 11/01/24			175		190,312
5.00%, 10/01/25			756		807,975
Vertiv Group Corp., 9.25%, 10/15/24(b)			221		212,989
					1,738,505
Electronic Equipment, Instruments & Components — 0.5%
Anixter, Inc., 6.00%, 12/01/25			274		302,770
Belden, Inc., 4.13%, 10/15/26	EUR		310		359,536
CDW LLC:
5.50%, 12/01/24	USD		1,325		1,458,825

Security		Par (000)		Value
Electronic Equipment, Instruments & Components (continued)
5.00%, 09/01/25	USD		150	$	155,813
4.25%, 04/01/28			90		91,809
Hon Hai Precision Industry Co. Ltd., 0.00%, 11/06/22(e)(i)			200		192,032
Ingenico Group SA, 1.63%, 09/13/24	EUR		200		217,915
Itron, Inc., 5.00%, 01/15/26(b)	USD		7		7,212
LG Display Co. Ltd., 1.50%, 08/22/24(j)			2,000		2,024,660
Sensata Technologies, Inc., 4.38%, 02/15/30(b)			156		155,805
Tsinghua Unic Ltd., 4.75%, 01/31/21			1,200		1,158,972
					6,125,349
Energy Equipment & Services — 0.5%
Anton Oilfield Services Group, 9.75%, 12/05/20			1,300		1,335,344
Apergy Corp., 6.38%, 05/01/26			138		136,965
Archrock Partners LP, 6.88%, 04/01/27(b)			261		276,976
Hilong Holding Ltd., 8.25%, 09/26/22			695		701,950
Nabors Industries, Inc.:
4.63%, 09/15/21			103		97,335
5.50%, 01/15/23			12		9,870
Noble Holding International Ltd.:
7.75%, 01/15/24			8		5,200
7.88%, 02/01/26(b)			346		249,120
Pacific Drilling SA, 8.38%, 10/01/23(b)			498		418,320
Rowan Cos., Inc., 4.88%, 06/01/22			210		157,500
Tervita Corp., 7.63%, 12/01/21(b)			441		448,166
Transocean Pontus Ltd., 6.13%, 08/01/25(b)			23		23,487
Transocean Poseidon Ltd., 6.88%, 02/01/27(b)			138		143,520
Transocean, Inc.:
6.50%, 11/15/20			10		10,200
8.51%, 12/15/21(f)			5		5,125
9.00%, 07/15/23(b)			810		832,275
7.25%, 11/01/25(b)			144		126,900
7.50%, 01/15/26(b)			29		25,810
USA Compression Partners LP:
6.88%, 04/01/26			669		694,087
6.88%, 09/01/27(b)			181		186,883
Valaris plc, 4.70%, 03/15/21			12		10,440
					5,895,473
Entertainment — 0.2%
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24			74		78,246
5.88%, 11/01/24			160		164,400
Live Nation Entertainment, lnc.(b):
5.38%, 06/15/22			57		57,712
4.88%, 11/01/24			71		73,559
Netflix, Inc.:
4.88%, 04/15/28			9		9,157
5.88%, 11/15/28			560		608,328
5.38%, 11/15/29(b)			1,044		1,088,370
Pinewood Finance Co. Ltd., 3.25%, 09/30/25	GBP		475		596,447
Ubisoft Entertainment SA, 0.00%, 09/24/24(e)(i)	EUR		80		105,979
					2,782,198
Equity Real Estate Investment Trusts (REITs ) — 1.0%
American Tower Corp., 3.13%, 01/15/27	USD		1,000		1,020,119
Brookfield Property REIT, Inc., 5.75%, 05/15/26(b)			245		256,025
Crown Castle International Corp., 3.80%, 02/15/28			1,000		1,063,519
CyrusOne LP, 5.38%,03/15/27			24		25,590
GLP Capital LP:
3.35%, 09/01/24			70		70,399
5.25%, 06/01/25			79		87,021
5.38%, 04/15/26			131		144,082
4.00%, 01/15/30			325		326,615

S C H E D U L E S   O F   I N V E S T M E N T S 23

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Inmobiliaria Colonial Socimi SA:
1.63%, 11/28/25	EUR		100	$	116,249
2.50%, 11/28/29			200		243,571
Iron Mountain, Inc.(b):
4.88%, 09/15/27	USD		169		172,833
4.88%, 09/15/29			277		281,238
iStar, Inc.:
6.00%, 04/01/22			78		80,309
5.25%, 09/15/22			60		61,275
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24			1,007		1,103,924
4.50%, 09/01/26			702		744,120
5.75%, 02/01/27(b)			36		40,421
4.50%, 01/15/28			397		411,887
MPT Operating Partnership LP:
5.50%, 05/01/24			34		34,893
5.00%, 10/15/27			1,304		1,365,940
4.63%, 08/01/29			328		337,840
Ryman Hospitality Properties, Inc., 4.75%, 10/15/27(b)			378		388,883
SBA Communications Corp., 4.88%, 09/01/24			1,147		1,187,145
Service Properties Trust:
4.35%, 10/01/24			143		144,761
4.75%, 10/01/26			143		143,831
Trust F/1401, 5.25%, 01/30/26			700		742,437
VICI Properties 1 LLC, 8.00%, 10/15/23			223		244,058
					10,838,985
Food & Staples Retailing — 0.1%
Albertsons Cos., Inc.:
6.63%, 06/15/24			114		119,415
5.75%, 03/15/25			89		91,523
5.88%, 02/15/28(b)			299		316,474
Casino Guichard Perrachon SA(f):
4.56%, 01/25/23	EUR		100		103,545
3.58%, 02/07/25			100		95,597
Cencosud SA, 6.63%, 02/12/45	USD		228		242,820
Distribuidora Internacional de Alimentacion SA, 1.00%, 04/28/21	EUR		200		170,668
Iceland Bondco plc, 4.63%, 03/15/25	GBP		100		102,790
Picard Groupe SAS, (EURIBOR 3 Month + 3.00%), 3.00%, 11/30/23(a)	EUR		200		213,525
					1,456,357
Food Products — 0.6%
Chobani LLC, 7.50%, 04/15/25(b)	USD		438		419,385
Darling Ingredients, Inc., 5.25%, 04/15/27(b)			214		224,700
Gruma SAB de CV, 4.88%, 12/01/24			760		819,612
JBS USA LUX SA(b):
5.88%, 07/15/24			369		380,088
5.75%, 06/15/25			900		937,638
6.75%, 02/15/28			179		198,187
6.50%, 04/15/29			650		721,487
5.50%, 01/15/30			757		802,405
Knight Castle Investments Ltd., 7.99%, 01/23/21			1,400		780,500
Post Holdings, Inc.(b):
5.50%, 03/01/25			309		323,677
5.00%, 08/15/26			76		78,820
5.63%, 01/15/28			237		251,220
5.50%, 12/15/29			438		456,615
Premier Foods Finance plc, 6.25%, 10/15/23	GBP		100		126,644
Sigma Finance Netherlands BV, 4.88%, 03/27/28	USD		331		351,584

Security		Par (000)		Value
Food Products (continued)
Simmons Foods, Inc., 7.75%, 01/15/24(b)	USD		283	$	306,348
					7,178,910
Gas Utilities — 0.1%
Perusahaan Gas Negara Tbk. PT, 5.13%, 05/16/24			769		839,171
Superior Plus LP, 7.00%, 07/15/26(b)			247		260,590
					1,099,761
Health Care Equipment & Supplies — 0.3%
Becton Dickinson and Co., 4.67%, 06/06/47			275		324,769
Hill-Rom Holdings, Inc., 4.38%, 09/15/27(b)			71		72,587
Hologic, Inc.(b):
4.38%, 10/15/25			127		130,175
4.63%, 02/01/28			171		177,199
Immucor, Inc., 11.13%, 02/15/22(b)			42		42,472
Ortho-Clinical Diagnostics, Inc., 6.63%, 05/15/22(b)			1,721		1,680,901
Sotera Health Holdings LLC, 6.50%, 05/15/23(b)			266		271,653
Teleflex, Inc.:
4.88%, 06/01/26			264		275,220
4.63%, 11/15/27			11		11,481
					2,986,457
Health Care Providers & Services — 1.6%
Acadia Healthcare Co., Inc., 5.13%, 07/01/22			241		242,807
AHP Health Partners, Inc., 9.75%, 07/15/26(b)			207		219,458
Anthem, Inc., 2.88%, 09/15/29			1,500		1,484,277
Centene Corp.:
6.13%, 02/15/24			108		112,342
4.75%, 01/15/25			108		110,862
5.38%, 06/01/26(b)			1,357		1,419,761
Community Health Systems, Inc.(b):
8.63%, 01/15/24			337		347,952
8.00%, 03/15/26			805		802,988
CVS Health Corp., 5.05%, 03/25/48			600		680,957
Eagle Holding Co. ll LLC(b)(k):
7.63%, (7.63% Cash or 8.38% PIK), 05/15/22			24		24,180
7.75%, (7.75% Cash or 8.50% PIK), 05/15/22			146		147,277
Encompass Health Corp., 5.75%, 11/01/24			224		226,341
Envision Healthcare Corp., 8.75%, 10/15/26(b)			196		119,560
HCA, Inc.:
5.38%, 02/01/25			543		593,227
5.88%, 02/15/26			7		7,825
5.38%, 09/01/26			391		429,592
5.63%, 09/01/28			512		570,522
5.88%, 02/01/29			853		958,115
5.25%, 06/15/49			490		534,513
MEDNAX, lnc.(b):
5.25%, 12/01/23			88		89,452
6.25%, 01/15/27			715		709,587
Molina Healthcare, Inc., 4.88%, 06/15/25(b)			462		464,310
MPH Acquisition Holdings LLC, 7.13%, 06/01/24(b)			510		469,837
NVA Holdings, Inc., 6.88%, 04/01/26(b)			88		93,390
Polaris Intermediate Corp., 8.50%, (8.50% Cash or 9.25% PIK), 12/01/22(b)(k)			375		318,467
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 05/01/23(b)			386		410,607
Surgery Center Holdings, Inc.(b):
6.75%, 07/01/25			379		340,153
10.00%, 04/15/27			186		188,790
Team Health Holdings, Inc., 6.38%, 02/01/25(b)			106		73,246

24 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Health Care Providers & Services (continued)
Tenet Healthcare Corp.:
8.13%, 04/01/22	USD		825	$	892,279
4.63%, 07/15/24			482		495,366
4.63%, 09/01/24(b)			264		271,572
4.88%, 01/01/26(b)			1,069		1,097,061
6.25%, 02/01/27(b)			258		268,720
5.13%, 11/01/27(b)			698		721,278
UnitedHealth Group, Inc., 3.50%, 08/15/39			800		832,792
Vizient, Inc., 6.25%, 05/15/27(b)			272		291,720
WellCare Health Plans, Inc.:
5.25%, 04/01/25			20		20,825
5.38%, 08/15/26(b)			750		800,475
					17,882,483
Health Care Technology — 0.1%
IQVIA, Inc.(b):
3.25%, 03/15/25	EUR		100		111,720
5.00%, 10/15/26	USD		200		209,500
5.00%, 05/15/27			944		988,840
					1,310,060
Hotels, Restaurants & Leisure — 2.0%
1011778 BC ULC(b):
4.25%, 05/15/24			178		183,180
5.00%, 10/15/25			1,755		1,814,757
3.88%, 01/15/28			344		346,188
Boyne USA, Inc., 7.25%, 05/01/25(b)			204		222,278
Cedar Fair LP, 5.25%, 07/15/29(b)			562		601,340
Churchill Downs, Inc.(b):
5.50%, 04/01/27			509		540,100
4.75%, 01/15/28			328		336,200
Cirsa Finance International SARL, 7.88%, 12/20/23(b)			200		212,300
Codere Finance 2 Luxembourg SA:
6.75%, 11/01/21	EUR		100		107,428
7.63%, 11/01/21(b)	USD		200		196,000
CPUK Finance Ltd.:
4.25%, 08/28/22	GBP		225		279,823
4.88%, 08/28/25			100		125,784
Eldorado Resorts, Inc.:
6.00%, 04/01/25	USD		152		160,360
6.00%, 09/15/26			148		162,060
Golden Nugget, Inc., 6.75%, 10/15/24(b)			1,502		1,528,285
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24			93		94,743
5.13%, 05/01/26			337		353,850
4.88%, 01/15/30(b)			1,155		1,219,507
Hilton Worldwide Finance LLC, 4.88%, 04/01/27			231		243,301
HIS Co. Ltd., 0.00%, 11/15/24(e)(i)	JPY		10,000		91,574
Huazhu Group Ltd., 0.38%, 11/01/22(i)	USD		913		947,940
IRB Holding Corp., 6.75%, 02/15/26(b)			189		189,945
KFC Holding Co.(b):
5.25%, 06/01/26			694		734,599
4.75%, 06/01/27			225		234,281
LHMC Finco 2 SARL, 7.25%, (7.25% Cash or 8.00% PIK), 10/02/25(k)	EUR		329		364,575
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26	USD		14		15,085
McDonald’s Corp., 4.45%, 09/01/48			500		577,981
MGM Resorts International:
6.63%, 12/15/21			755		817,929
7.75%, 03/15/22			493		551,549
6.00%, 03/15/23			25		27,542
Punch Taverns Finance B Ltd., 7.37%, 09/30/21	GBP		50		65,008
Sabre GLBL, lnc.,5.25%, 11/15/23(b)	USD		601		617,528

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
Scientific Games International, lnc.(b):
5.00%, 10/15/25	USD		1,396	$	1,440,393
8.25%, 03/15/26			809		858,227
Silversea Cruise Finance Ltd., 7.25%, 02/01/25(b)			16		17,088
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24			1,161		1,201,635
5.50%, 04/15/27			413		440,353
Station Casinos LLC, 5.00%, 10/01/25(b)			342		347,062
Studio City Finance Ltd., 7.25%, 02/11/24			800		840,000
Viking Cruises Ltd., 5.88%, 09/15/27(b)			1,580		1,674,168
Vinpearl JSC, 3.50%, 06/14/23(i)			600		659,058
Wyndham Destinations, Inc., 5.75%, 04/01/27(f)			274		295,920
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)			130		136,175
Wynn Las Vegas LLC, 5.25%, 05/15/27(b)			72		73,980
Wynn Resorts Finance LLC, 5.13%, 10/01/29(b)			393		411,825
Yum! Brands, Inc.:
4.75%, 01/15/30(b)			310		320,125
5.35%, 11/01/43			127		121,920
					22,800,949
Household Durables — 0.3%
Brookfield Residential Properties, Inc., 6.25%, 09/15/27(b)			187		187,935
Installed Building Products, Inc., 5.75%, 02/01/28(b)			101		104,156
Lennar Corp.:
6.25%, 12/15/21			360		380,700
4.88%, 12/15/23			134		142,375
4.75%, 05/30/25			228		243,344
5.25%, 06/01/26			108		116,775
4.75%, 11/29/27			438		469,755
Mattamy Group Corp.(b):
6.88%, 12/15/23			30		31,200
6.50%, 10/01/25			44		46,200
MDC Holdings, Inc., 6.00%, 01/15/43			32		33,040
Meritage Homes Corp., 5.13%, 06/06/27			60		63,300
PulteGroup, Inc., 6.38%, 05/15/33			352		389,523
Taylor Morrison Communities, Inc., 5.88%, 06/15/27(b)			127		139,383
Tempur Sealy International, Inc., 5.50%, 06/15/26			8		8,340
Toll Brothers Finance Corp., 3.80%, 11/01/29			144		141,751
TRI Pointe Group, Inc.:
4.88%, 07/01/21			97		99,910
5.25%, 06/01/27			2		2,005
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22			189		197,505
6.88%, 08/15/23			630		659,925
					3,457,122
Household Products — 0.1%
Energizer Holdings, Inc.(b):
6.38%, 07/15/26			11		11,783
7.75%, 01/15/27			377		420,053
Spectrum Brands, Inc.:
5.75%, 07/15/25			370		386,091
5.00%, 10/01/29(b)			86		87,505
					905,432
Independent Power and Renewable Electricity Producers — 0.7%
Calpine Corp.:
5.38%, 01/15/23			782		791,775
5.88%, 01/15/24(b)			70		71,575
5.50%, 02/01/24			26		26,260

S C H E D U L E S   O F   I N V E S T M E N T S 25

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Independent Power and Renewable Electricity Producers     (continued)
5.75%, 01/15/25	USD		812	$	826,210
5.25%, 06/01/26(b)			1,092		1,130,220
Clearway Energy Operating LLC:
5.38%, 08/15/24			111		113,775
5.75%, 10/15/25(b)			276		290,490
GCL New Energy Holdings Ltd., 7.10%, 01/30/21			1,800		1,697,062
NRG Energy, Inc.:
3.75%, 06/15/24(b)			63		64,828
6.63%, 01/15/27			1,135		1,229,602
5.75%, 01/15/28			62		66,650
4.45%, 06/15/29(b)			465		484,468
5.25%, 06/15/29(b)			536		576,361
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)			464		475,020
Talen Energy Supply LLC:
6.50%, 06/01/25			20		15,200
10.50%, 01/15/26(b)			20		17,250
					7,876,746
Industrial Conglomerates — 0.0%
General Electric Co., (EURIBOR 3 Month + 0.30%), 0.00%, 05/28/20(a)	EUR		100		108,593
Insurance — 1.3%
Acrisure LLC,8.13%, 02/15/24(b)	USD		131		141,152
Aegon NV, (EUR Swap Annual 5 Year + 5.21%), 5.63%(a)(j)	EUR		275		328,471
Alliant Holdings Intermediate LLC, 8.25%, 08/01/23(b)	USD		1,484		1,515,535
Allstate Corp. (The), (LIBOR USD 3 Month + 0.43%), 2.53%, 03/29/21(a)			275		275,272
AmWINS Group, Inc., 7.75%, 07/01/26(b)			227		244,025
Asahi Mutual Life Insurance Co., (USD Swap Semi 5 Year + 4.59%), 6.50%(a)(j)			800		834,114
Assicurazioni Generali SpA:
(LIBOR GBP 3 Month + 2.20%), 6.42%(a)(j)	GBP		100		132,023
(EURIBOR 3 Month + 4.50%), 4.60%(a)(j)	EUR		100		119,113
2.12%, 10/01/30			625		690,586
(EURIBOR 3 Month + 5.35%), 5.50%, 10/27/47(a)			450		589,289
(EURIBOR 3 Month + 5.35%), 5.00%, 06/08/48(a)			100		127,644
BNP Paribas Cardif SA, (EURIBOR 3 Month + 3.93%), 4.03%(a)(j)			200		241,424
Caisse Nationale de Reassurance Mutuelle Agricole Groupama, (EURIBOR 3 Month + 5.77%), 6.37%(a)(j)			200		254,141
CNO Financial Group, Inc., 5.25%, 05/30/29	USD		329		360,255
CNP Assurances:
1.88%, 10/20/22	EUR		100		114,627
(EURIBOR 3 Month + 4.60%), 4.50%, 06/10/47(a)			100		129,486
FWD Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 3.08%), 5.50%(a)(j)	USD		1,200		1,138,164
Galaxy Bidco Ltd., 6.50%, 07/31/26	GBP		105		127,102
GTCR AP Finance, Inc., 8.00%, 05/15/27(b)	USD		415		426,413
Heungkuk Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.47%), 4.48%(a)(j)			2,000		1,945,000
HUB International Ltd., 7.00%, 05/01/26(b)			1,294		1,329,197
KDB Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.66%), 7.50%(a)(j)			1,800		1,780,313

Security		Par (000)		Value
Insurance (continued)
QBE Insurance Group Ltd., (USD Swap Semi 10 Year + 4.40%), 5.87%, 06/17/46(a)	USD		1,200	$	1,289,753
Union Life Insurance Co. Ltd., 3.00%, 09/19/21			1,200		1,053,000
					15,186,099
Interactive Media & Services — 0.2%
Baidu, Inc., 4.13%, 06/30/25			600		637,500
Rackspace Hosting, Inc., 8.63%, 11/15/24(b)			41		37,716
Tencent Holdings Ltd.:
3.80%, 02/11/25			600		631,831
3.98%, 04/11/29			400		426,963
YY, Inc., 0.75%, 06/15/25(b)(i)			111		101,124
					1,835,134
Internet & Direct Marketing Retail — 0.1%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			500		524,050
Baozun, Inc., 1.63%, 05/01/24(b)(i)			413		445,007
Go Daddy Operating Co. LLC, 5.25%, 12/01/27(b)			179		188,174
Shop Direct Funding plc, 7.75%, 11/15/22	GBP		140		151,481
					1,308,712
IT Services — 0.7%
21Vianet Group, Inc., 7.88%, 10/15/21	USD		565		570,565
Banff Merger Sub, Inc.:
8.38%, 09/01/26	EUR		310		312,732
9.75%, 09/01/26(b)	USD		1,206		1,151,127
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b)			212		217,830
Fidelity National Information Services, Inc., 3.75%, 05/21/29			235		254,925
Fiserv, Inc., 3.50%, 07/01/29			1,345		1,415,098
Gartner, Inc., 5.13%, 04/01/25(b)			323		337,939
International Business Machines Corp., 4.25%, 05/15/49			660		759,272
Tempo Acquisition LLC, 6.75%, 06/01/25(b)			647		666,410
WEX, lnc., 4.75%, 02/01/23(b)			91		91,910
Zayo Group LLC:
6.00%, 04/01/23			876		898,995
6.38%, 05/15/25			388		399,563
5.75%, 01/15/27(b)			1,244		1,271,741
					8,348,107
Leisure Products — 0.1%
Mattel, Inc., 6.75%, 12/31/25(b)			560		584,326
Life Sciences Tools & Services — 0.4%
Avantor, Inc.(b):
6.00%, 10/01/24			1,900		2,035,907
9.00%, 10/01/25			1,509		1,690,080
Charles River Laboratories International, Inc., 5.50%, 04/01/26(b)			343		364,860
Syneos Health, Inc., 7.50%, 10/01/24(b)			67		69,345
WuXi App Tec Co. Ltd., 0.00%, 09/17/24(e)(i)			700		734,227
					4,894,419
Machinery — 0.5%
Amsted Industries, Inc., 5.63%, 07/01/27(b)			108		113,940
CNH Industrial Finance Europe SA, 1.75%, 09/12/25	EUR		100		115,344
Colfax Corp.(b):
6.00%, 02/15/24	USD		403		426,515
6.38%, 02/15/26			437		470,185
EnPro Industries, Inc., 5.75%, 10/15/26			416		443,560
Grinding Media, Inc., 7.38%, 12/15/23(b)			411		392,505
Manitowoc Co., Inc. (The), 9.00%, 04/01/26(b)			294		288,120
Mueller Water Products, Inc., 5.50%, 06/15/26(b)			399		416,955
Navistar International Corp., 6.63%, 11/01/25(b)			516		523,740
Platin 1426 GmbH, 5.38%, 06/15/23	EUR		364		373,354

26 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Machinery (continued)
RBS Global, Inc., 4.88%, 12/15/25(b)	USD		146	$	150,000
SPX FLOW, lnc.(b):
5.63%, 08/15/24			331		341,757
5.88%, 08/15/26			23		24,035
Stevens Holding Co., Inc., 6.13%, 10/01/26(b)			42		44,678
Terex Corp., 5.63%, 02/01/25(b)			653		670,141
Titan Acquisition Ltd., 7.75%, 04/15/26(b)			495		464,062
Wabash National Corp., 5.50%, 10/01/25(b)			187		183,728
					5,442,619
Marine — 0.0%
CMA CGM SA, 6.50%, 07/15/22	EUR		100		85,016
Media — 2.4%
Altice Financing SA(b):
6.63%, 02/15/23	USD		877		900,021
7.50%, 05/15/26			1,438		1,527,861
Altice Finco SA, 4.75%, 01/15/28	EUR		200		210,705
Altice Luxembourg SA:
7.75%, 05/15/22(b)	USD		434		443,222
7.63%, 02/15/25(b)			691		720,368
8.00%, 05/15/27	EUR		500		598,361
10.50%, 05/15/27(b)	USD		1,457		1,642,039
AMC Networks, Inc., 4.75%, 08/01/25			984		1,014,750
Block Communications, Inc., 6.88%, 02/15/25(b)			135		140,737
Charter Communications Operating LLC, 5.13%, 07/01/49			1,000		1,064,404
Clear Channel Worldwide Holdings, Inc.(b):
9.25%, 02/15/24			824		905,296
5.13%, 08/15/27			1,274		1,327,317
Comcast Corp.:
4.70%, 10/15/48			305		373,455
4.05%, 11/01/52			500		557,653
CSC Holdings LLC:
6.75%, 11/15/21			92		99,130
5.13%, 12/15/21(b)			270		270,054
5.38%, 07/15/23(b)			213		218,591
5.25%, 06/01/24			308		331,100
10.88%, 10/15/25(b)			1,267		1,434,814
5.50%, 05/15/26(b)			630		663,012
5.38%, 02/01/28(b)			629		662,809
5.75%, 01/15/30(b)			483		504,793
Diamond Sports Group LLC, 5.38%, 08/15/26(b)			729		756,338
Discovery Communications LLC, 3.95%, 03/20/28			500		519,007
DISH DBS Corp.:
6.75%, 06/01/21			447		470,378
5.88%, 07/15/22			857		891,280
5.00%, 03/15/23			316		319,255
5.88%, 11/15/24			26		25,772
Entercom Media Corp., 6.50%, 05/01/27(b)			198		206,910
GCI LLC, 6.63%, 06/15/24(b)			168		181,230
Gray Television, Inc.(b):
5.13%, 10/15/24			7		7,254
7.00%, 05/15/27			176		193,371
iHeartCommunications, Inc.:
6.38%, 05/01/26			153		165,101
5.25%, 08/15/27(b)			312		324,480
Interpublic Group of Cos., Inc. (The):
3.50%, 10/01/20			140		141,644
4.65%, 10/01/28			150		168,085
ITV plc, 1.38%, 09/26/26	EUR		175		192,343
MDC Partners, Inc., 6.50%, 05/01/24(b)	USD		57		51,941
Meredith Corp., 6.88%, 02/01/26			178		180,893
Midcontinent Communications, 5.38%, 08/15/27(b)			109		114,723

Security		Par (000)		Value
Media (continued)
Myriad International Holdings BV, 5.50%, 07/21/25	USD		700	$	777,000
Outfront Media Capital LLC, 5.00%, 08/15/27(b)			552		579,379
Radiate Holdco LLC(b):
6.88%, 02/15/23			17		17,489
6.63%, 02/15/25			125		125,887
SES SA(a)(j):
(EUR Swap Annual 5 Year + 4.66%), 4.62%	EUR		100		115,592
(EUR Swap Annual 5 Year + 5.40%), 5.63%			300		368,493
Sirius XM Radio, lnc.(b):
4.63%, 07/15/24	USD		174		180,408
5.38%, 07/15/26			3		3,150
5.00%, 08/01/27			969		1,000,492
5.50%, 07/01/29			341		364,018
Summer BidCo BV, 0.00%, (0.00% Cash or 9.75% PIK), 11/15/25(k)	EUR		274		314,127
TEGNA, Inc., 5.50%, 09/15/24(b)	USD		81		83,430
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28(b)			200		209,500
Univision Communications, Inc.(b):
5.13%, 05/15/23			75		75,234
5.13%, 02/15/25			135		131,200
Videotron Ltd., 5.13%, 04/15/27(b)			530		560,475
WMG Acquisition Corp., 5.50%, 04/15/26(b)			113		118,650
Ziggo Bond Co. BV:
4.63%, 01/15/25	EUR		100		112,047
5.88%, 01/15/25(b)	USD		715		734,662
6.00%, 01/15/27(b)			480		501,000
Ziggo BV, 5.50%, 01/15/27(b)			673		701,401
					27,594,131
Metals & Mining — 1.4%
BHP Billiton Finance Ltd., (EUR Swap Annual 5 Year + 4.80%), 5.63%, 10/22/79(a)	EUR		100		132,985
Big River Steel LLC, 7.25%, 09/01/25(b)	USD		316		333,380
China Hongqiao Group Ltd., 7.38%, 05/02/23			1,200		1,192,338
Chinalco Capital Holdings Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.79%), 4.10%(a)(j)			525		525,525
Constellium SE:
4.25%, 02/15/26	EUR		100		112,213
5.88%, 02/15/26(b)	USD		1,614		1,682,595
Freeport-McMoRan, Inc.:
3.55%, 03/01/22			126		126,315
3.88%, 03/15/23			1,199		1,207,992
5.00%, 09/01/27			175		174,144
5.25%, 09/01/29			155		154,516
5.45%, 03/15/43			1,908		1,719,108
HBIS Group Hong Kong Co. Ltd., 4.25%, 04/07/20			400		399,750
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22(b)			57		60,064
New Gold, Inc., 6.25%, 11/15/22(b)			354		354,956
Newmont Goldcorp Corp., 2.80%, 10/01/29			220		217,421
Novelis Corp.(b):
6.25%, 08/15/24			1,238		1,293,710
5.88%, 09/30/26			1,204		1,262,635
Shandong Iron and Steel Xinheng International Co. Ltd., 6.50%, 06/14/21			200		201,312
Steel Dynamics, Inc.:
5.50%, 10/01/24			198		203,207
4.13%, 09/15/25			81		81,810
5.00%, 12/15/26			91		95,323
Vale Overseas Ltd., 6.25%, 08/10/26			874		1,006,192

S C H E D U L E S   O F   I N V E S T M E N T S 27

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Metals & Mining (continued)
Vedanta Resources Finance II plc, 8.00%, 04/23/23	USD		1,000	$	1,005,000
Vedanta Resources Ltd., 6.38%, 07/30/22			2,136		2,096,617
					15,639,108
Multiline Retail — 0.1%
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		100		124,638
El Puerto de Liverpool SAB de CV, 3.88%, 10/06/26	USD		343		349,538
SACI Falabella, 4.38%, 01/27/25			600		635,625
					1,109,801
Multi-Utilities — 0.1%
Consumers Energy Co., 3.10%, 08/15/50			160		161,135
NGG Finance plc(a):
(EUR Swap Annual 5 Year + 2.14%), 1.62%, 12/05/79	EUR		150		162,476
(EUR Swap Annual 5 Year + 2.53%), 2.13%, 09/05/82			200		216,355
					539,966
Oil, Gas & Consumable Fuels — 3.3%
Aker BP ASA, 4.75%, 06/15/24(b)	USD		285		297,682
Antero Midstream Partners LP, 5.38%, 09/15/24			201		180,840
Antero Resources Corp., 5.38%, 11/01/21			130		125,450
Ascent Resources Utica Holdings LLC, 10.00%, 04/01/22(b)			78		77,977
Berry Petroleum Co. LLC, 7.00%, 02/15/26(b)			132		126,390
Brazos Valley Longhorn LLC, 6.88%, 02/01/25			75		64,500
California Resources Corp., 8.00%, 12/15/22(b)			15		7,425
Callon Petroleum Co.:
6.13%, 10/01/24			125		123,125
6.38%, 07/01/26			157		153,208
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23			202		191,395
8.25%, 07/15/25			177		173,389
Centennial Resource Production LLC, 6.88%, 04/01/27(b)			175		174,562
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24			188		216,068
5.88%, 03/31/25			130		144,642
5.13%, 06/30/27			1,357		1,485,067
Cheniere Energy Partners LP:
5.63%, 10/01/26			325		344,873
4.50%, 10/01/29(b)			477		488,329
Chesapeake Energy Corp.:
6.63%, 08/15/20			72		72,360
4.88%, 04/15/22			566		457,045
5.75%, 03/15/23			128		97,920
7.00%, 10/01/24			118		84,665
8.00%, 03/15/26(b)			59		40,415
CNX Resources Corp., 5.88%, 04/15/22			907		870,720
Comstock Resources, Inc., 9.75%, 08/15/26			148		123,697
CONSOL Energy, Inc., 11.00%, 11/15/25(b)			418		416,955
Corral Petroleum Holdings AB, 11.75%, (11.75% Cash or 13.25% PIK), 05/15/21(k)(l)	EUR		200		225,445
Covey Park Energy LLC, 7.50%, 05/15/25(b)	USD		228		182,400
Crestwood Midstream Partners LP:
6.25%, 04/01/23(f)			60		61,575
5.63%, 05/01/27(b)			344		351,203
CrownRock LP, 5.63%, 10/15/25(b)			907		912,651
DCP Midstream Operating LP:
5.38%, 07/15/25			12		12,780
5.13%, 05/15/29			25		25,469
6.45%, 11/03/36(b)			39		40,658

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
6.75%, 09/15/37(b)	USD		635	$	668,337
Denbury Resources, Inc.(b):
9.00%, 05/15/21			259		240,222
9.25%, 03/31/22			126		110,250
Enbridge, Inc.:
4.00%, 10/01/23			514		544,771
(LIBOR USD 3 Month + 3.64%), 6.25%, 03/01/78(a)			360		381,483
Endeavor Energy Resources LP(b):
5.50%, 01/30/26			492		511,680
5.75%, 01/30/28			97		103,063
Energy Transfer Operating LP, 5.15%, 02/01/43			150		155,974
Energy Transfer Partners LP, 5.88%, 03/01/22			500		534,757
EnLink Midstream LLC, 5.38%, 06/01/29			44		42,020
EnLink Midstream Partners LP:
4.40%, 04/01/24			85		81,859
4.15%, 06/01/25			6		5,565
4.85%, 07/15/26			138		131,100
5.60%, 04/01/44			105		85,838
5.05%, 04/01/45			109		87,200
5.45%, 06/01/47			109		88,835
Enterprise Products Operating LLC, 4.80%, 02/01/49			320		372,599
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			381		249,555
5.63%, 02/01/26			330		202,125
Genesis Energy LP:
6.00%, 05/15/23			99		99,371
5.63%, 06/15/24			15		14,363
6.50%, 10/01/25			27		26,325
6.25%, 05/15/26			96		92,640
Great Western Petroleum LLC, 9.00%, 09/30/21(b)			187		162,690
Greenko Mauritius Ltd., 6.25%, 02/21/23			1,000		1,015,000
Hess Corp., 5.80%, 04/01/47			500		575,232
Hess Infrastructure Partners LP, 5.63%, 02/15/26(b)			138		144,210
Indigo Natural Resources LLC, 6.88%, 02/15/26(b)			206		185,658
Ithaca Energy North Sea plc, 9.38%, 07/15/24(b)			200		208,700
Kinder Morgan Energy Partners LP, 3.50%, 03/01/21			500		507,559
Kinder Morgan, Inc., 5.55%, 06/01/45			250		294,678
Matador Resources Co., 5.88%, 09/15/26			247		247,469
MEG Energy Corp.(b):
6.38%, 01/30/23			190		183,350
7.00%, 03/31/24			69		66,585
6.50%, 01/15/25			524		534,480
Mongolian Mining Corp.:
9.25%, 04/15/24			1,250		1,181,250
MPLX LP:
(LIBOR USD 3 Month + 1.10%), 3.20%, 09/09/22(a)			2,195		2,201,925
Series B, (LIBOR USD 3 Month + 4.65%), 6.87%(a)(j)			627		626,247
5.50%, 02/15/49			375		434,894
Murphy Oil Corp.:
5.75%, 08/15/25			81		82,215
5.63%, 12/01/42(f)			57		50,160
Neerg Energy Ltd., 6.00%, 02/13/22			2,400		2,364,630
Neptune Energy Bondco plc, 6.63%, 05/15/25(b)			400		411,000
NGPL PipeCo LLC, 7.77%, 12/15/37(b)			126		163,207
Northern Oil and Gas, Inc., 8.50%, (8.50% Cash or 9.50% PIK), 05/15/23(k)			26		26,780
NuStar Logistics LP, 6.00%, 06/01/26			138		149,357

28 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Parkland Fuel Corp., 5.88%, 07/15/27(b)	USD		123	$	129,065
Parsley Energy LLC(b):
6.25%, 06/01/24			41		42,435
5.38%, 01/15/25			681		689,512
5.25%, 08/15/25			43		43,633
5.63%, 10/15/27			64		66,080
PBF Holding Co. LLC, 7.25%, 06/15/25			113		117,096
PDC Energy, Inc.:
1.13%, 09/15/21(i)			357		329,009
6.13%, 09/15/24			8		7,980
5.75%, 05/15/26			66		65,017
QEP Resources, Inc.:
6.88%, 03/01/21			66		65,505
5.38%, 10/01/22			185		176,962
5.25%, 05/01/23			198		183,649
5.63%, 03/01/26			231		199,307
Range Resources Corp.:
5.75%, 06/01/21			290		287,825
5.88%, 07/01/22			44		42,130
5.00%, 08/15/22			69		64,688
Reliance Industries Ltd., 4.13%, 01/28/25			750		799,219
ReNew Power Synthetic, 6.67%, 03/12/24			1,000		1,012,813
Santos Finance Ltd.:
4.13%, 09/14/27			781		793,204
5.25%, 03/13/29			500		540,567
Sinopec Capital 2013 Ltd., 3.13%, 04/24/23			900		918,562
SM Energy Co.:
6.13%, 11/15/22			155		148,544
5.00%, 01/15/24			94		84,365
5.63%, 06/01/25			38		32,578
6.75%, 09/15/26			102		89,250
6.63%, 01/15/27			50		43,125
Southwestern Energy Co.:
6.20%, 01/23/25(f)			56		49,279
7.75%, 10/01/27			51		44,466
SRC Energy, Inc., 6.25%, 12/01/25			38		37,619
Sunoco LP:
4.88%, 01/15/23			83		85,179
5.50%, 02/15/26			16		16,698
6.00%, 04/15/27			56		59,639
5.88%, 03/15/28			36		38,205
Tallgrass Energy Partners LP(b):
4.75%, 10/01/23			7		7,000
5.50%, 09/15/24			173		172,135
5.50%, 01/15/28			484		473,062
Targa Resources Partners LP:
4.25%, 11/15/23			57		57,428
5.13%, 02/01/25			98		100,778
5.88%, 04/15/26			122		129,283
5.38%, 02/01/27			15		15,506
6.50%, 07/15/27(b)			141		153,844
5.00%, 01/15/28			156		157,763
6.88%, 01/15/29(b)			1,100		1,201,827
Tengizchevroil Finance Co. International Ltd., 4.00%, 08/15/26			1,100		1,147,850
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			427		435,540
6.63%, 06/15/25(f)			7		7,378
5.00%, 01/31/28			121		125,840
Transportadora de Gas Internacional SA ESP, 5.55%, 11/01/28(b)			350		403,266
UGI International LLC, 3.25%, 11/01/25	EUR		168		193,586
Whiting Petroleum Corp., 6.63%, 01/15/26	USD		14		9,450
WPX Energy, Inc.:
8.25%, 08/01/23			106		119,250

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
5.75%, 06/01/26	USD		61	$	62,525
5.25%, 10/15/27			123		123,615
Yankuang Group Cayman Ltd., 4.75%, 11/30/20			385		386,917
					37,785,136
Paper & Forest Products — 0.1%
Fibria Overseas Finance Ltd., 4.00%, 01/14/25			450		458,156
Norbord, Inc., 6.25%, 04/15/23(b)			98		103,635
Suzano Austria GmbH, 7.00%, 03/16/47(b)			265		302,001
					863,792
Personal Products — 0.2%
Avon International Capital plc, 6.50%, 08/15/22(b)			64		66,320
Coty, Inc.:
4.00%, 04/15/23	EUR		100		109,086
4.75%, 04/15/26			100		109,725
6.50%, 04/15/26(b)	USD		101		97,970
Top Glove Labuan Ltd., 2.00%, 03/01/24(i)			1,000		977,280
Unilever NV:
1.13%, 02/12/27	EUR		175		205,578
1.63%, 02/12/33			125		154,845
					1,720,804
Pharmaceuticals — 1.1%
Allergan, Inc., 2.80%, 03/15/23	USD		1,012		1,021,229
Bausch Health Americas, Inc., 8.50%, 01/31/27(b)			314		352,402
Bausch Health Cos., Inc.(b):
5.88%, 05/15/23			116		117,450
7.00%, 03/15/24			209		219,651
6.13%, 04/15/25			248		256,990
5.50%, 11/01/25			1,343		1,405,248
9.00%, 12/15/25			888		996,780
5.75%, 08/15/27			175		189,145
7.00%, 01/15/28			878		945,694
7.25%, 05/30/29			608		664,118
Bayer AG(a):
(EUR Swap Annual 5 Year + 2.55%), 3.75%, 07/01/74	EUR		300		349,036
(EUR Swap Annual 5 Year + 2.01%), 2.38%, 04/02/75			200		220,324
Catalent Pharma Solutions, Inc.(b):
4.88%, 01/15/26	USD		372		382,695
5.00%, 07/15/27			320		332,000
Diocle Spa, (EURIBOR 3 Month + 3.88%), 3.88%, 06/30/26(a)	EUR		146		161,918
Elanco Animal Health, Inc., 4.90%, 08/28/28	USD		112		122,266
Luye Pharma Group Ltd., 1.50%, 07/09/24(i)			1,700		1,780,750
Nidda BondCo GmbH, 5.00%, 09/30/25	EUR		200		223,096
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)	USD		444		406,815
Rossini SARL, 6.75%, 10/30/25	EUR		712		855,319
Sanofi SA, Series 12FX, 1.38%, 03/21/30			200		242,472
Takeda Pharmaceutical Co. Ltd.:
2.25%, 11/21/26			125		152,447
5.00%, 11/26/28(b)	USD		1,000		1,170,595
3.00%, 11/21/30	EUR		175		227,394
					12,795,834
Professional Services — 0.2%(b)
Dun & Bradstreet Corp. (The):
6.88%, 08/15/26	USD		792		863,280
10.25%, 02/15/27			423		467,944
Jaguar Holding Co. II, 6.38%, 08/01/23			947		978,961
					2,310,185

S C H E D U L E S   O F   I N V E S T M E N T S 29

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Real Estate Management & Development — 6.8%
ADLER Real Estate AG, 3.00%, 04/27/26	EUR		100	$	115,150
Agile Group Holdings Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 9.22%), 6.87%(a)(j)	USD		200		194,688
Alam Synergy Pte. Ltd.:
11.50%, 04/22/21			280		296,362
6.63%, 04/24/22			230		217,541
APL Realty Holdings Pte. Ltd., 5.95%, 06/02/24			1,600		1,344,560
Central China Real Estate Ltd.:
7.33%, 01/27/20			390		388,050
6.88%, 10/23/20			850		847,875
6.75%, 11/08/21			745		730,830
7.25%, 04/24/23			1,600		1,544,000
CFLD Cayman Investment Ltd.:
8.63%, 02/28/21			501		511,020
8.60%, 04/08/24			1,081		1,069,852
China Aoyuan Group Ltd.:
7.95%, 09/07/21			416		429,000
7.95%, 02/19/23			2,289		2,340,503
China Evergrande Group:
8.25%, 03/23/22			1,000		895,313
9.50%, 04/11/22			1,695		1,548,806
4.25%, 02/14/23(i)	HKD		10,000		1,118,791
China SCE Group Holdings Ltd.:
7.45%, 04/17/21	USD		300		304,143
5.88%, 03/10/22			800		771,584
7.25%, 04/19/23			1,200		1,165,500
7.38%, 04/09/24			200		191,250
CIFI Holdings Group Co. Ltd., 6.55%, 03/28/24			1,500		1,466,250
Consus Real Estate AG, 9.63%, 05/15/24	EUR		100		109,544
Country Garden Holdings Co. Ltd., 6.15%, 09/17/25	USD		750		765,000
DEMIRE Deutsche Mittelstand Real Estate AG, 1.88%, 10/15/24	EUR		100		108,349
Easy Tactic Ltd.:
8.13%, 02/27/23	USD		400		385,000
8.63%, 02/27/24			1,945		1,867,200
8.13%, 07/11/24			870		816,547
Emaar Sukuk Ltd., 3.64%, 09/15/26			300		298,969
Esic Sukuk Ltd., 3.94%, 07/30/24			500		496,875
Fantasia Holdings Group Co. Ltd.:
8.38%, 03/08/21			200		186,562
11.75%, 04/17/22			850		801,404
7.95%, 07/05/22			750		641,016
Five Point Operating Co. LP, 7.88%, 11/15/25(b)			420		426,300
Future Land Development Holdings Ltd., 7.50%, 01/22/21			1,000		958,125
Global Prime Capital Pte. Ltd., 7.25%, 04/26/21			200		206,230
Golden Wheel Tiandi Holdings Co. Ltd., 7.00%, 01/18/21			200		180,375
Greenland Global Investment Ltd.:
(LIBOR USD 3 Month + 4.85%), 6.96%, 09/26/21(a)			1,000		1,016,025
Greenland Hong Kong Holdings Ltd., 9.88%, 06/17/20			800		827,250
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			44		45,265
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)			684		711,360
JGC Ventures Pte. Ltd., 10.75%, 08/30/21			900		954,558
Jingrui Holdings Ltd.:
9.45%, 04/23/21			200		183,538
10.88%, 10/04/21			1,200		1,098,000
Jinke Properties Group Co. Ltd., 8.38%, 06/20/21			800		780,000

Security		Par (000)		Value
Real Estate Management & Development (continued)
Kaisa Group Holdings Ltd.:
11.75%, 02/26/21	USD		760	$	772,113
11.50%, 01/30/23			1,356		1,291,590
KWG Group Holdings Ltd., 7.88%, 09/01/23			500		497,500
Leading Affluence Ltd., 4.50%, 01/24/23			400		410,908
Logan Property Holdings Co. Ltd.:
7.50%, 08/25/22			590		609,175
6.50%, 07/16/23			2,600		2,578,063
Longfor Group Holdings Ltd., 3.95%, 09/16/29			515		505,666
MAF Global Securities Ltd., 4.75%, 05/07/24			660		702,694
Modern Land China Co. Ltd., 12.85%, 10/25/21			1,329		1,249,260
New Metro Global Ltd.:
6.50%, 04/23/21			700		657,587
7.13%, 05/23/21			700		659,176
Newmark Group, Inc., 6.13%, 11/15/23			99		107,398
No Va Land Investment Group Corp., 5.50%, 04/27/23(i)			1,600		1,573,000
NWD MTN Ltd., 4.13%, 07/18/29			1,200		1,189,125
Powerlong Real Estate Holdings Ltd.:
5.95%, 07/19/20			1,751		1,741,667
6.95%, 04/17/21			1,500		1,494,285
Redco Properties Group Ltd., 13.50%, 01/21/20			810		814,050
Redsun Properties Group Ltd., 9.95%, 04/11/22			1,000		906,750
Ronshine China Holdings Ltd.:
11.25%, 08/22/21			460		485,098
8.75%, 10/25/22			615		613,463
8.95%, 01/22/23			1,060		1,053,375
Scenery Journey Ltd.:
11.00%, 11/06/20			2,800		2,796,500
13.00%, 11/06/22			500		500,156
Shimao Property Holdings Ltd., 5.60%, 07/15/26			2,400		2,451,000
Singha Estate PCL, 2.00%, 07/20/22(i)			800		791,750
Sino-Ocean Land Treasure IV Ltd.: 4.75%, 08/05/29			1,060		1,025,975
Summit Properties Ltd., 2.00%, 01/31/25	EUR		100		104,646
Sunac China Holdings Ltd.:
7.35%, 07/19/21	USD		1,600		1,602,912
7.25%, 06/14/22			690		671,887
7.95%, 10/11/23			1,200		1,171,125
Times China Holdings Ltd., 7.63%, 02/21/22			1,400		1,433,250
TLG Finance SARL, (EUR Swap Annual 5 Year + 3.98%), 3.38%(a)(j)	EUR		100		111,066
Unique Pub Finance Co. plc (The), Series N, 6.46%, 03/30/32(f)	GBP		200		282,442
Vonovia Finance BV:
0.88%, 07/03/23	EUR		100		111,699
1.50%, 01/14/28			200		231,958
Wanda Group Overseas Ltd., 7.50%, 07/24/22	USD		1,560		1,526,850
WeWork Cos., Inc., 7.88%, 05/01/25(b)			160		135,800
Xinyuan Real Estate Co. Ltd., 9.88%, 03/19/20			1,200		1,131,000
Yango Justice International Ltd., 10.25%, 03/18/22			275		254,403
Yanlord Land HK Co. Ltd., 6.80%, 02/27/24			1,020		1,047,731
Yuzhou Properties Co. Ltd.:
7.90%, 05/11/21			2,300		2,340,250
8.63%, 01/23/22			600		616,500
6.00%, 01/25/22			800		780,500
6.00%, 10/25/23			1,565		1,430,019
Zhenro Properties Group Ltd.:
12.50%, 01/02/21			1,200		1,262,625
9.80%, 08/20/21			340		347,331
9.15%, 03/08/22			690		688,275

30 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Real Estate Management & Development (continued)
8.70%, 08/03/22	USD		1,200	$	1,180,377
					77,294,530
Road & Rail — 0.3%
Algeco Global Finance plc, 8.00%, 02/15/23(b)			200		199,560
Avis Budget Car Rental LLC, 5.75%, 07/15/27(b)			103		106,265
Capitol Investment Merger Sub 2 LLC, 10.00%, 08/01/24(b)			207		214,763
CAR, Inc., 8.88%, 05/10/22			700		672,000
Hertz Corp. (The), 7.63%, 06/01/22(b)			293		305,086
Lima Metro Line 2 Finance Ltd., 4.35%, 04/05/36(b)			200		213,063
Pacific National Finance Pty. Ltd., 4.75%, 03/22/28			300		314,606
Penske Truck Leasing Co. LP, 2.70%, 11/01/24(b)			330		330,694
Uber Technologies, Inc.(b):
7.50%, 11/01/23			309		311,318
7.50%, 09/15/27			278		277,305
					2,944,660
Semiconductors & Semiconductor Equipment — 0.3%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			29		32,806
Entegris, Inc., 4.63%, 02/10/26(b)			118		122,130
Global A&T Electronics Ltd., 8.50%, 01/12/23			1,400		1,312,063
Infineon Technologies AG(a)(j):
(EUR Swap Annual 5 Year + 3.39%), 1.00%	EUR		300		325,350
(EUR Swap Annual 5 Year + 4.00%), 1.00%			100		108,531
Lam Research Corp.:
3.75%, 03/15/26	USD		320		341,741
4.88%, 03/15/49			245		299,519
NXP BV, 5.35%, 03/01/26(b)			500		561,242
Qorvo, Inc., 5.50%, 07/15/26			271		286,244
QUALCOMM, lnc., 4.30%, 05/20/47			195		217,984
					3,607,610
Software — 1.1%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			586		621,160
Ascend Learning LLC: 6.88%, 08/01/25(b)			733		761,685
CDK Global, Inc.:
4.88%, 06/01/27			496		516,435
5.25%, 05/15/29(b)			393		406,755
Celestial Dynasty Ltd., 4.25%, 06/27/29			800		800,051
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			993		1,007,895
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			847		915,658
Infor US, Inc., 6.50%, 05/15/22			1,251		1,271,329
Informatica LLC, 7.13%, 07/15/23(b)			547		556,572
Nuance Communications, Inc., 5.63%, 12/15/26			506		535,095
PTC, Inc., 6.00%, 05/15/24			108		113,130
RP Crown Parent LLC, 7.38%, 10/15/24(b)			474		492,960
SAP SE, 1.25%, 03/10/28	EUR		200		237,631
Solera LLC, 10.50%, 03/01/24(b)	USD		1,573		1,662,850
Sophia LP, 9.00%,09/30/23(b)			135		138,206
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			1,501		1,568,582
TIBCO Software, Inc., 11.38%, 12/01/21(b)			277		289,032
Veritas US, Inc., 7.50%, 02/01/23(b)			200		197,689
					12,092,715
Specialty Retail — 0.3%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			86		89,010
eG Global Finance plc:
3.63%, 02/07/24	EUR		175		185,019

Security		Par (000)		Value
Specialty Retail (continued)
4.38%, 02/07/25	EUR		289	$	305,546
6.75%, 02/07/25(b)	USD		200		195,250
Group 1 Automotive, Inc., 5.25%, 12/15/23(b)			11		11,303
L Brands, Inc.:
6.88%, 11/01/35			187		161,989
6.75%, 07/01/36			8		6,787
Murphy Oil USA, Inc., 4.75%, 09/15/29			130		132,925
Penske Automotive Group, Inc., 5.50%, 05/15/26			166		173,611
PetSmart, Inc.(b):
7.13%, 03/15/23			107		100,580
5.88%, 06/01/25			803		800,992
SRS Distribution, Inc., 8.25%, 07/01/26(b)			192		195,840
Staples, Inc.(b):
7.50%, 04/15/26			958		987,027
10.75%, 04/15/27			120		123,300
					3,469,179
Technology Hardware, Storage & Peripherals — 0.3%
Apple, Inc., 3.75%, 11/13/47			750		836,325
Dell International LLC, 7.13%, 06/15/24(b)			499		525,946
NCR Corp.(b):
5.75%, 09/01/27			79		81,765
6.13%, 09/01/29			179		188,675
Nuoxi Capital Ltd.:
7.88%, 06/24/21			1,000		870,000
7.45%, 10/16/22			200		161,650
Western Digital Corp., 4.75%, 02/15/26			379		389,896
Xerox Corp.:
4.80%, 03/01/35			239		203,748
6.75%, 12/15/39			16		16,240
					3,274,245
Textiles, Apparel & Luxury Goods — 0.2%
Delta Merlin Dunia Tekstil PT, 8.63%, 03/12/24			600		91,500
European TopSoho SARL, 4.00%, 09/21/21(i)	EUR		100		101,447
Kering SA, 0.00%, 09/30/22(e)(i)			100		117,987
Prime Bloom Holdings Ltd.:
7.50%, 12/19/19	USD		1,100		897,187
6.95%, 07/05/22			355		236,141
William Carter Co. (The), 5.63%, 03/15/27(b)			307		328,490
					1,772,752
Thrifts & Mortgage Finance — 0.2%
Ladder Capital Finance Holdings LLLP, 5.25%, 10/01/25(b)			432		441,720
Mongolian Mortgage Corp. Hfc LLC, 9.75%, 01/29/22			1,200		1,184,625
Nationstar Mortgage Holdings, Inc.(b):
8.13%, 07/15/23			581		605,692
9.13%, 07/15/26			107		113,955
					2,345,992
Tobacco — 0.1%
Altria Group, Inc.:
3.80%, 02/14/24			245		256,114
4.40%, 02/14/26			120		128,322
5.95%, 02/14/49			485		570,338
BAT Capital Corp., (EURIBOR 3 Month + 0.50%), 0.09%, 08/16/21(a)	EUR		100		109,092
					1,063,866
Trading Companies & Distributors — 0.4%
Air Lease Corp., 3.88%, 07/03/23	USD		125		130,443
Beacon Roofing Supply, lnc.(b):
4.88%, 11/01/25			98		96,025
4.50%, 11/15/26			70		70,700
BOC Aviation Ltd., 3.00%, 09/11/29			1,000		982,049

S C H E D U L E S   O F   I N V E S T M E N T S 31

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Trading Companies & Distributors (continued)
Flexi-Van Leasing, Inc., 10.00%, 02/15/23(b)	USD		38	$	37,145
Fortress Transportation & Infrastructure Investors LLC(b):
6.75%, 03/15/22			19		19,855
6.50%, 10/01/25			117		120,218
HD Supply, Inc., 5.38%, 10/15/26(b)			1,890		2,001,038
Herc Holdings, Inc., 5.50%, 07/15/27(b)			301		313,040
United Rentals North America, Inc.:
4.63%, 07/15/23			38		38,840
5.50%, 07/15/25			90		93,645
4.63%, 10/15/25			365		372,478
5.88%, 09/15/26			229		244,183
6.50%, 12/15/26			7		7,626
5.50%, 05/15/27			17		18,020
5.25%, 01/15/30			261		273,562
					4,818,867
Transportation Infrastructure — 0.1%
Adani Ports & Special Economic Zone Ltd., 4.38%, 07/03/29			200		208,125
DP World Crescent Ltd., 3.91%, 05/31/23			700		718,375
Royal Capital BV, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 5.93%), 4.88%(a)(j)			219		220,275
Societa Iniziative Autostradali e Servizi SpA, 1.63%, 02/08/28	EUR		100		112,621
					1,259,396
Wireless Telecommunication Services — 0.9%
Connect Finco SARL, 6.75%, 10/01/26(b)	USD		1,166		1,187,862
Digicel International Finance Ltd., 8.75%, 05/25/24(b)			200		189,687
Gogo Intermediate Holdings LLC, 9.88%, 05/01/24(b)			410		438,700
Hughes Satellite Systems Corp., 5.25%, 08/01/26			290		310,300
Matterhorn Telecom SA, 4.00%, 11/15/27	EUR		150		171,293
Oztel Holdings SPC Ltd., 6.63%, 04/24/28	USD		731		735,569
SoftBank Group Corp.:
(USD Swap Rate 5 Year + 4.23%), 6.00%(a)(j)			200		185,000
4.75%, 07/30/25	EUR		485		583,994
3.13%, 09/19/25			100		111,311
5.00%, 04/15/28			300		362,681
4.00%, 09/19/29			100		112,265
Sprint Communications, Inc., 7.00%, 03/01/20(b)	USD		200		203,250
Sprint Corp.:
7.88%, 09/15/23			296		325,144
7.13%, 06/15/24			289		311,484
7.63%, 02/15/25			74		81,400
7.63%, 03/01/26			586		646,798
Telefonica Europe BV(a)(j):
(EUR Swap Annual 5 Year + 3.86%), 3.75%	EUR		100		115,153
(EUR Swap Annual 5 Year + 2.33%), 2.63%			100		110,914
(EUR Swap Annual 10 Year + 4.30%), 5.88%			200		252,197
(EUR Swap Annual 6 Year + 4.11%), 4.38%			600		719,023
(EUR Swap Annual 8 Year + 2.97%), 3.88%			200		233,802
(EUR Swap Annual 8 Year + 3.07%), 2.87%			200		219,442
T-Mobile USA, Inc.:
6.38%, 03/01/25	USD		10		10,360
6.50%, 01/15/26			318		341,910
4.50%, 02/01/26			273		280,999
4.75%, 02/01/28			306		320,229
Vodafone Group plc:
4.38%, 05/30/28			350		386,576

Security		Par (000)		Value
Wireless Telecommunication Services (continued)
2.50%, 05/24/39	EUR		100	$	123,639
(EUR Swap Annual 5 Year + 3.43%), 4.20%, 10/03/78(a)			368		457,245
(EUR Swap Annual 5 Year + 2.67%), 3.10%, 01/03/79(a)			400		461,267
Xplornet Communications, Inc., 9.63%, (9.63% Cash or 10.63% PIK), 06/01/22(b)(k)	USD		106		107,990
					10,097,484
Total Corporate Bonds — 47.8% (Cost: $532,302,407)					542,645,776
Floating Rate Loan Interests — 23.0%(l)
Aerospace & Defense — 0.5%
Atlantic Aviation FBO, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%), 5.80%, 12/06/25(d)			270		271,647
Dynasty Acquisition Co., Inc., Term Loan:
04/06/26(m)			2,072		2,080,281
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, 11/28/21(m)			613		606,525
Transdigm, Inc., Term Loan F, (LIBOR USD 1 Month + 2.50%), 4.54%, 06/09/23			3,056		3,046,401
					6,004,854
Air Freight & Logistics — 0.1%
Avolon Borrower 1 LLC, 1st Lien Term Loan B3, (LIBOR USD 1 Month + 1.75%), 3.79%, 01/15/25			678		680,358
Airlines — 0.3%
American Airlines, Inc., Term Loan B, 12/14/23(m)			1,390		1,388,467
American Airlines, Inc., Term Loan B23, (LIBOR USD 1 Month + 2.00%), 4.04%, 04/28/23			293		292,631
WestJet Airlines Ltd., Term Loan, 08/07/26(m)			1,375		1,384,460
					3,065,558
Auto Components — 0.2%
Adient US LLC, Term Loan B, (LIBOR USD 3 Month + 4.25%), 6.46% - 6.89%, 04/25/24			167		163,681
Panther BF Aggregator 2 LP, Term Loan B, 04/30/26(m)			1,874		1,854,098
Wand Newco 3, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 5.54%, 02/05/26			560		562,222
					2,580,001
Building Products — 0.1%
CPG International, Inc., Term Loan, (LIBOR USD 6 Month + 3.75%), 5.93%, 05/05/24			617		614,351
Wilsonart LLC, 1st Lien Term Loan B, (LIBOR USD 3 Month + 3.25%), 5.36%, 12/19/23			852		835,533
					1,449,884
Capital Markets — 0.4%
Deerfield Holdings Corp., Term Loan, 02/13/25(m)			1,074		1,055,024
Fortress Investment Group LLC, Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 12/27/22			373		373,254
Greenhill & Co., Inc., Term Loan, 04/12/24(d)(m)			444		434,010
Jefferies Finance LLC, Term Loan, 06/03/26(m)			556		554,990
RPI Finance Trust, Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 03/27/23			957		961,720
Travelport Finance (Luxembourg) SA, 1st Lien Term Loan, 05/29/26(m)			1,260		1,136,214
					4,515,212

32 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Chemicals — 0.9%
Alpha 3 BV, Term Loan, 01/31/24(m)	USD		1,937	$	1,908,223
Ascend Performance Materials LLC, Term Loan B, 08/14/26(m)			748		748,471
Axalta Dupont PC, Term Loan, 06/01/24(m)			1,387		1,386,718
Chemours Co. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 1.75%), 3.80%, 04/03/25			344		330,831
Ennis-Flint Road Infrastructure Investment, Term Loan, (LIBOR USD 1 Month + 3.50%), 5.54%, 06/13/23			81		73,797
Greenrock Finance, Inc., Term Loan, (LIBOR USD 3 Month + 3.50%), 5.60%, 06/28/24			138		137,879
Invictus Co., Term Loan B, 03/28/25(m)			911		865,570
Invictus Co., Term Loan B26, (LIBOR USD 3 Month + 6.75%), 8.90%, 03/30/26(d)			75		69,000
IPS Acquisition LLC, Term Loan B, 11/07/24(d)(m)			552		553,043
LTI Holdings, Inc., Term Loan, 09/06/25(m)			141		133,587
Messer Industries GmbH, Term Loan, 03/01/26(m)			971		968,859
Momentive Performance Materials, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.30%, 05/15/24			426		422,738
Nouryon Finance BV, Term Loan, 10/01/25(m)			523		511,207
OXEA Holding Vier GmbH, Term Loan, (LIBOR USD 1 Month + 3.50%), 5.63%, 10/14/24			1,117		1,111,068
PQ Corp., Term Loan, 02/08/25(m)			1,250		1,250,966
Vectra Co., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 02/23/25			138		134,524
					10,606,481
Commercial Services & Supplies — 1.1%
Advanced Disposal Services, Inc., Term Loan, (LIBOR USD 3 Month + 2.25%), 4.20%, 11/10/23			895		897,383
Allied Universal Holdco LLC Cov Lite, Term Loan B, 07/10/26(m)			2,011		2,011,980
Brand Energy & Infrastructure Services, Inc., Term Loan, 06/21/24(m)			1,111		1,083,034
Camelot US Acquisition 1 Co., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.29%, 10/03/23			833		837,560
Capri Acquisitions Bidco Ltd., Term Loan, 11/01/24(m)			1,302		1,284,580
Cast & Crew Payroll LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 4.00%), 6.05%, 01/16/26			428		430,657
Diamond (BC) BV, Term Loan, 09/06/24(m).			623		593,022
EnergySolutions LLC, Term Loan, (LIBOR USD 3 Month + 3.75%), 5.85%, 05/30/25			262		242,549
GFL Environmental, Inc., Term Loan B, 05/30/25(m)			1,001		992,553
Harland Clarke Holdings Corp., Term Loan B, (LIBOR USD 3 Month + 4.75%), 6.85%, 11/03/23			122		94,831
KAR Auction Services, Inc., Term Loan B, 09/19/26(m)			245		245,552
Prime Security Services Borrower LLC, 1st Lien Term Loan, 09/23/26(m)			906		895,664
Safe Fleet Holdings LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 02/01/25			137		132,800
ServiceMaster Co. LLC (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 2.50%), 4.54%, 11/08/23			71		70,570
Tempo Acquisition LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 05/01/24			2,201		2,207,720

Security		Par (000)		Value
Commercial Services & Supplies (continued)
US Ecology, Term Loan, 08/14/26(m)	USD		131	$	131,655
West Corp., Term Loan:
(LIBOR USD 1 Month + 4.00%), 0.00% - 6.04%, 10/10/24			909		810,598
(LIBOR USD1 Month + 3.50%), 5.54%, 10/10/24			25		21,734
					12,984,442
Communications Equipment — 0.0%
Ciena Corp., Term Loan B1, (LIBOR USD 1 Month + 2.00%), 4.04%, 09/26/25			378		379,712
Construction & Engineering — 0.1%(m)
Ply Gem, Inc., Term Loan B, 04/01/25			291		284,658
SRS Distribution, Inc., Term Loan B, 05/23/25			674		655,595
					940,253
Construction Materials — 0.4%
ABC Supply Co., Inc., Term Loan B, 10/31/23(m)			1,388		1,387,184
Core & Main LP, Term Loan, 08/01/24(m)			2,164		2,143,604
Foundation Building Materials, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.04%, 08/13/25			247		246,581
Plaskolite PPC Intermediate II LLC, 1st Lien Term Loan, 12/15/25(m)			477		450,910
TAMKO Building Products, Inc., 1st Lien Term Loan B, 05/29/26(m)			286		285,912
					4,514,191
Containers & Packaging — 0.9%
Berry Global, Inc., Term Loan Q, 10/01/22(m)			1,908		1,915,506
Berry Plastics, Term Loan U, (LIBOR USD 1 Month + 2.50%), 4.55%, 07/01/26			978		969,994
BWAY Holding Co., Term Loan, 04/03/24(m)			1,131		1,106,633
Charter NEX US, Inc., 1st Lien Term Loan:
(LIBOR USD 1 Month + 3.00%), 5.04%, 05/16/24			1,095		1,083,763
(LIBOR USD 1 Month + 3.50%), 5.54%, 05/16/24			431		430,291
Flex Acquisition Co., Inc., Term Loan, 12/29/23(m)			1,280		1,231,468
Pregis TopCo LLC, Term Loan, (LIBOR USD 6 Month + 4.00%), 6.25%, 07/31/26			329		327,766
Reynolds Group Holdings, Inc., 1st Lien Term Loan, 02/05/23(m)			3,030		3,034,163
					10,099,584
Diversified Consumer Services — 0.5%
AlixPartners LLP, 1st Lien Term Loan, (LIBOR USD 1 Month + 2.75%), 4.79%, 04/04/24			1,369		1,368,791
Bright Horizons Family Solutions LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.79%, 11/07/23			677		677,290
Research Now, Inc., Term Loan, (LIBOR USD 3 Month + 5.50%), 7.75%, 12/07/24			226		226,699
SIRVA Worldwide, Inc., 1st Lien Term Loan, 08/04/25(d)(m)			499		481,244
Spin Holdco, Inc., 1st Lien Term Loan B, 11/14/22(m)			1,883		1,850,013
TierPoint LLC, Term Loan, 05/06/24(m)			447		413,469
Trugreen Ltd. Partnership, 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.75%), 5.79%, 03/19/26			513		514,404
					5,531,910

S C H E D U L E S   O F   I N V E S T M E N T S 33

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Financial Services — 0.9%
Advisor Group Holdings, Inc., Term Loan, 07/31/26(m)	USD		731	$	715,466
CLEAResult Consulting, Inc., Term Loan, 08/15/25(m)			352		342,116
Genuine Financial Holdings LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 07/11/25			681		661,719
SMG US Midco 2, Inc., Term Loan, 01/23/25(m)			575		569,959
Sotheby’s, Inc., Term Loan B, 01/22/27(m)			868		857,697
Spring Education Group, Inc., Term Loan, 07/30/25(m)			572		571,190
Starwood Property Mortgage LLC, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.54%, 07/26/26			181		181,000
Triton Bidco, Term Loan B, 09/10/26(m)			3,783		3,720,921
VICI Properties 1 LLC, Term Loan B, 12/20/24(m)			1,850		1,853,960
Ziggo Secured Finance Partnership, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.53%, 04/15/25			1,111		1,108,632
					10,582,660
Diversified Telecommunication Services — 0.6%
Altice Financing SA, Term Loan, (LIBOR USD 1 Month + 2.75%), 4.81%, 01/31/26			577		561,083
Altice Financing SA, Term Loan B, (LIBOR USD 6 Month + 2.75%), 4.95%, 07/15/25			283		275,235
Altice France SA, Term Loan, (LIBOR USD 1 Month + 4.00%), 6.03%, 08/14/26			1,368		1,363,367
CenturyLink, Inc., Term Loan, 01/31/25(m)			717		712,246
Consolidated Communications, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.05%, 10/05/23			25		24,093
Level 3 Financing, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.29%, 02/22/24			939		940,269
MTN Infrastructure TopCo, Inc., Term Loan, 11/15/24(m)			1,122		1,109,328
Numericable US LLC, Term Loan, (LIBOR USD 1 Month + 3.69%), 5.72%, 01/31/26			306		303,076
Telesat Canada, Term Loan, (LIBOR USD 3 Month + 2.50%), 4.61%, 11/17/23			301		301,484
Zayo Group LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.04%, 01/19/21			654		654,648
					6,244,829
Electric Utilities — 0.1%
Calpine Construction Finance Co. LP, Term Loan B, (LIBOR USD 1 Month + 2.50%), 4.54%, 01/15/25			106		106,132
Edgewater Generation LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 12/13/25			420		414,777
EIF Channelview Cogeneration LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.25%), 6.30%, 05/03/25			56		56,621
Vistra Operations Co. LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.04%, 08/04/23			308		308,483
Vistra Operations Co. LLC, Term Loan B3, (LIBOR USD 1 Month + 2.00%), 4.02%, 12/31/25			380		380,905
					1,266,918

Security		Par (000)		Value
Electrical Equipment — 0.2%
Dell International LLC, Term Loan B, 09/19/25(m)	USD		1,068	$	1,072,238
GrafTech International Ltd., 1st Lien Term Loan B, (LIBOR USD 1 Month + 3.50%), 5.54%, 02/12/25			708		687,240
MH Sub 1 LLC, 1st Lien Term Loan, 09/13/24(m)			575		569,955
					2,329,433
Energy Equipment & Services — 0.0%
McDermott International, Inc., Term Loan, 05/09/25(m)			672		422,209
Entertainment — 0.4%
Creative Artists Agency LLC, Term Loan B, 02/15/24(m)			1,382		1,388,228
Kingpin Intermediate Holdings LLC, 1st Lien Term Loan B, 07/03/24(d)(m)			748		746,967
Live Nation Entertainment, Inc., 1st Lien Term Loan B3, (LIBOR USD 3 Month + 1.75%), 3.69%, 10/31/23			133		133,651
PCI Gaming Authority, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 05/29/26			678		681,358
Renaissance Learning, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 05/24/25			143		140,369
William Morris Endeavor Entertainment LLC, Term Loan B, 05/18/25(m)			1,606		1,557,453
					4,648,026
Equity Real Estate Investment Trusts (REITs) — 0.3%
Capital Automotive LP, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.55%, 03/25/24			94		94,058
Claros Mortgage Trust, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.29%, 08/09/26(d)			608		608,000
DTZ US Borrower LLC, Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 08/21/25			1,012		1,012,345
GEO Group Refinancing, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.05%, 03/22/24			407		362,469
Iron Mountain, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.79%, 01/02/26			889		879,860
RHP Hotel Properties LP, 1st Lien Term Loan B, 05/11/24(m)			554		554,103
					3,510,835
Food & Staples Retailing — 0.3%
Albertson’s LLC, Term Loan:
(LIBOR USD 1 Month + 2.75%), 4.79%, 11/17/25			255		256,755
(LIBOR USD 1 Month + 2.75%), 4.79%, 08/17/26			3		3,510
BCPE Empire Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 4.00%), 6.04%, 06/11/26			397		391,081
H-Food Holdings LLC, Term Loan, (LIBOR USD 1 Month + 3.69%), 5.73%, 05/23/25			116		108,482
H-Food Incremental, Term Loan, 05/23/25(m)			736		694,982
US Foods, Inc., Term Loan B:
(LIBOR USD 1 Month + 2.00%), 4.04%, 06/27/23			972		975,380
08/14/26(m)			756		758,366
					3,188,556

34 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Food Products — 0.6%
8th Avenue Food & Provisions, Inc., Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 10/01/25	USD		149	$	149,124
ARAMARK Services, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 1.75%), 3.79%, 03/11/25			680		680,725
Chobani LLC, Term Loan, 10/10/23(m)			1,535		1,520,380
Hostess Brands LLC, Term Loan, 08/03/22(m)			1,441		1,440,199
JBS USA LLC, Term Loan B, 05/01/26(m)			1,099		1,103,837
Nomad Foods Ltd., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.28%, 05/15/24			527		525,030
Post Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 05/24/24			591		592,389
TMK Hawk Parent Corp., Term Loan, 08/28/24(m)			1,269		1,053,857
					7,065,541
Health Care Equipment & Supplies — 0.2%
Immucor, Inc., 1st Lien Term Loan, 06/15/21(m)			1,854		1,850,329
Health Care Providers & Services — 1.1%
AHP Health Partners, Inc., Term Loan, 06/30/25(m)			329		329,243
Azalea TopCo, Inc., Term Loan, 07/24/26(m)			917		913,946
CHG Healthcare Services, Inc., Term Loan B, 06/07/23(m)			974		971,847
Concentra, Inc., Term Loan, (LIBOR USD 3 Month + 2.50%), 4.54%, 06/01/22(d)			225		225,832
Dentalcorp Perfect Smile ULC, 1st Lien Term Loan, 05/31/25(m)			580		570,329
Diplomat Pharmacy, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.55%, 12/20/24			221		205,417
Envision Healthcare Corp., Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 10/10/25			707		574,482
Femur Buyer, Inc., Term Loan, 03/05/26(d)(m)			252		252,368
Gentiva Health Services, Inc., Term Loan U, (LIBOR USD 1 Month + 3.75%), 5.81%, 07/02/25			740		743,415
HC Group Holdings III, Inc., 1st Lien Term Loan B, 04/07/22(m)			459		457,279
HCA, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 03/13/25			567		568,616
MPH Acquisition Holdings LLC, Term Loan, 06/07/23(m)			1,195		1,136,881
nThrive, Inc., 1st Lien Term Loan, 10/20/22(m)			1,131		1,013,960
Ortho-Clinical Diagnostics, Inc., Term Loan B, 06/30/25(m)			1,909		1,843,744
Radiology Partners, Inc., 1st Lien Term Loan B, (LIBOR USD 3 Month + 4.75%), 7.06% - 7.39%, 07/09/25			293		288,754
Team Health Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 4.79%, 02/06/24			429		352,020
Vizient, Inc., Term Loan B5, (LIBOR USD 1 Month + 2.50%), 4.54%, 05/06/26			218		218,843
Wink Holdco, Inc., Term Loan, 12/02/24(m)			723		710,137
WP CityMD Bidco LLC, Term Loan, 08/13/26(m)			723		714,642
					12,091,755
Health Care Technology — 0.4%
Athenahealth, Inc., Term Loan B, 02/05/26(m)			1,873		1,865,811
Change Healthcare Holdings LLC, Term Loan B, (LIBOR USD 1 Month + 2.50%), 4.54%, 03/01/24			1,664		1,654,987
Goodrx, Inc., Term Loan, 10/10/25(m)			548		547,506
					4,068,304

Security		Par (000)		Value
Hotels, Restaurants & Leisure — 1.9%
1011778 BC ULC, Term Loan, 02/16/24(m)	USD		1,733	$	1,737,729
Aristocrat Leisure Ltd., Term Loan B, (LIBOR USD 3 Month + 1.75%), 4.03%, 10/19/24			253		253,889
Boyd Gaming Corp., Term Loan B, (LIBOR USD 3 Month + 2.25%), 4.17% - 4.65%, 09/15/23			996		998,438
Caesars Resort Collection LLC, Term Loan, 12/23/24(m)			2,011		1,996,670
CityCenter Holdings LLC, Term Loan B, 04/18/24(m)			1,706		1,708,517
Eldorado Resorts, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.31%, 04/17/24			130		129,487
Four Seasons Holdings, Inc., Term Loan F, (LIBOR USD 1 Month + 2.00%), 4.04%, 11/30/23			1,381		1,386,688
Golden Nugget, Inc., 1st Lien Term Loan, 10/04/23(m)			831		829,975
Hilton Worldwide Finance LLC, Term Loan B2, (LIBOR USD 1 Month + 1.75%), 3.77%, 06/22/26			967		972,655
IRB Holding Corp., Term Loan B, 02/05/25(m)			1,863		1,853,796
KFC Holding Co., Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.79%, 04/03/25			412		412,709
Lakeland Tours LLC, Term Loan B, (LIBOR USD 3 Month + 3.75%), 5.90%, 12/16/24			470		471,246
MGM Growth Properties LLC, Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 03/21/25			1,789		1,792,112
Motorcity Casino Hotel, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.29%, 08/06/21			495		495,533
Playa Resorts Holding BV, 1st Lien Term Loan B, 04/29/24(d)(m)			595		576,804
Scientific Games International, Inc., Term Loan B, (LIBOR USD 3 Month + 2.75%), 4.79% - 4.90%, 08/14/24			1,259		1,247,256
Stars Group Holdings BV, Term Loan, 07/10/25(m)			1,920		1,926,960
Station Casinos LLC, Term Loan B, (LIBOR USD 1 Month + 2.50%), 4.55%, 06/08/23			1,012		1,014,812
Whatabrands LLC, Term Loan, 08/02/26(m)			1,423		1,428,521
Wyndham Hotels & Resorts, Inc., Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.79%, 05/30/25			446		448,069
					21,681,866
Household Durables — 0.0%
Serta Simmons Bedding LLC, Term Loan:
(LIBOR USD 1 Month + 3.50%), 5.54% - 5.56%, 11/08/23			178		108,740
(LIBOR USD 1 Month + 8.00%), 10.06%, 11/08/24			17		5,548
					114,288
Independent Power and Renewable Electricity Producers — 0.1%
AES Corp. (The), Term Loan, (LIBOR USD 3 Month + 1.75%), 3.87%, 05/31/22			13		12,556
Calpine Corp., 1st Lien Term Loan B5, (LIBOR USD 3 Month + 2.50%), 4.61%, 01/15/24			79		78,940
Calpine Corp., Term Loan, (LIBOR USD 1 Month + 2.50%), 4.54%, 08/12/26			362		362,476
Calpine Corp., Term Loan B9, (LIBOR USD 3 Month + 2.75%), 4.86%, 04/05/26			1,124		1,126,296
					1,580,268

S C H E D U L E S   O F   I N V E S T M E N T S 35

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Industrial Conglomerates — 0.4%
Filtration Group Corp., Term Loan B, 03/29/25(m)	USD		1,238	$	1,240,132
PSAV Holdings LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29% - 5.35%, 02/21/25			602		581,313
RBS Global, Inc., Term Loan, (LIBOR USD 1 Month + 2.00%), 4.04%, 08/21/24			296		297,444
Sundyne US Purchaser, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.00%), 6.04%, 04/23/26(d)			746		744,669
Vertiv Co., Term Loan B, 11/30/23(m)			2,106		2,000,694
					4,864,252
Insurance — 1.2%
Alliant Holdings Intermediate LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 05/09/25			166		164,067
Alliant Holdings Intermediate LLC, Term Loan, 05/09/25(m)			1,810		1,777,980
AmWINS Group, Inc., Term Loan, 01/25/24(m)			1,657		1,656,526
AssuredPartners, Inc., Term Loan, 10/22/24(m)			1,290		1,282,969
Asurion LLC, 1st Lien Term Loan B6, (LIBOR USD 1 Month + 3.00%), 5.04%, 11/03/23			457		458,515
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 8.54%, 08/04/25			554		562,587
Asurion LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 11/03/24			272		272,989
Asurion LLC, Term Loan B4, (LIBOR USD 1 Month + 3.00%), 5.04%, 08/04/22			1,049		1,052,413
HUB International Ltd., Term Loan B, (LIBOR USD 3 Month + 3.00%), 5.27%, 04/25/25			1,409		1,392,049
Sedgwick, 1st Lien Term Loan, 12/31/25(m)			2,104		2,067,236
Sedgwick, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.00%), 6.04%, 09/03/26			921		921,383
USI, Inc., 1st Lien Term Loan B, 05/16/24(m)			1,449		1,423,707
					13,032,421
IT Services — 2.2%
Altran Technologies SA, Term Loan, (LIBOR USD 3 Month + 2.25%), 4.41%, 03/20/25			99		98,562
Applied Systems, Inc., Term Loan:
09/19/24(m)			1,327		1,324,862
(LIBOR USD 3 Month + 7.00%), 9.10%, 09/19/25			100		100,383
Boxer Parent Co., Inc., Term Loan B, 10/02/25(m)			1,302		1,252,008
CCC Information Services, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 8.79%, 04/28/25			134		134,871
CCC Information Services, Inc., Term Loan, 04/29/24(m)			860		855,644
Epicor Software Corp., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.30%, 06/01/22			790		789,899
Evertec, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 5.54%, 11/27/24(d)			211		212,724
GoDaddy, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 02/15/24			670		671,099
Greeneden US Holdings I LLC, Term Loan B, 12/01/23(m)			659		654,534
IG Investments Holdings LLC, Term Loan, 05/23/25(m)			1,577		1,567,284
Mitchell International, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 11/29/24			1,495		1,430,217

Security		Par (000)		Value
IT Services (continued)
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.29%, 12/01/25(d)	USD		197	$	178,967
Outfront Media Capital LLC, 1st Lien Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 03/18/24			51		51,412
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.38%, 08/01/25			168		120,960
Rackspace Hosting, Inc., Term Loan, 11/03/23(m)			623		570,477
Sabre GLBL, Inc., Term Loan, (LIBOR USD 1 Month + 2.00%), 4.04%, 02/22/24			898		900,784
Solera LLC, Term Loan B1, 03/03/23(m)			2,220		2,208,237
Sophia LP, 1st Lien Term Loan B, 09/30/22(m)			2,564		2,563,899
SS&C Technologies Holdings, Inc., 1st Lien Term Loan B5, (LIBOR USD 1 Month + 2.25%), 4.29%, 04/16/25			2,478		2,486,739
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.29%, 04/16/25			340		341,073
SS&C Technologies Holdings, Inc., Term Loan B1, (LIBOR USD 1 Month + 2.25%), 4.29%, 07/08/22			202		202,128
Trans Union LLC, Term Loan, (LIBOR USD 1 Month + 2.00%), 4.04%, 04/10/23			1,507		1,510,779
Verscend Holding Corp., Term Loan B, (LIBOR USD 1 Month + 4.50%), 6.54%, 08/27/25.			1,930		1,935,099
Vertafore, Inc., Term Loan B, 07/02/25(m)			1,171		1,136,208
WEX, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.29%, 05/15/26			1,380		1,386,037
					24,684,886
Life Sciences Tools & Services — 0.3%
Albany Molecular Research, Inc., Term Loan:
08/30/24(m)			687		676,464
(LIBOR USD 1 Month + 7.00%), 9.04%, 08/30/25			60		59,400
Avantor Funding, Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 11/21/24			618		622,531
IQVIA, Inc., Term Loan B, (LIBOR USD 3 Month + 2.00%), 4.10%, 03/07/24			61		61,283
Sotera Health Holdings LLC, Term Loan:
05/15/22(m)			1,494		1,475,740
(LIBOR USD1 Month + 3.50%), 5.57%, 05/15/22			255		254,510
					3,149,928
Machinery — 0.4%
Doosan Infracore International, Inc., Term Loan B, (LIBOR USD 3 Month + 2.00%), 4.10%, 05/18/24			173		173,348
Gardner Denver, Inc., Term Loan B, 07/30/24(m)			627		628,627
Gates Global LLC, Term Loan B, 04/01/24(m)			1,448		1,423,336
Terex Corp., Term Loan, (LIBOR USD 1 Month + 2.75%), 4.79%, 01/31/24			71		70,821
Titan Acquisition Ltd., Term Loan, 03/28/25(m)			2,071		1,985,688
WELBILT, Inc., Term Loan, 10/11/25(d)(m)			443		443,754
					4,725,574
Media — 1.4%
Ascend Learning LLC, Term Loan B, 07/12/24(m)			889		884,412
Cable One, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 3.80%, 05/01/24			271		271,155

36 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Media (continued)
Cablevision CSC Holdings LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.28%, 07/17/25	USD		229	$	228,324
Charter Communications Operating LLC, Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.05%, 04/30/25			811		815,354
Clear Channel Outdoor Holdings, Inc., Term Loan, 08/21/26(m)			3,076		3,082,583
CSC Holdings LLC, Term Loan B, 01/25/26(m)			888		887,959
Diamond Sports Group LLC, Term Loan, 08/24/26(m)			1,377		1,383,885
Gray Television, Inc., Term Loan, (LIBOR USD 3 Month + 2.50%), 4.83%, 01/02/26			171		171,882
Gray Television, Inc., Term Loan B, (LIBOR USD 3 Month + 2.25%), 4.58%, 02/07/24			213		213,262
iHeartCommunications, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 4.00%), 6.10%, 05/01/26			708		712,092
Intelsat Jackson Holdings SA, Term Loan, (LIBOR USD 1 Month + 4.50%), 6.55%, 01/02/24			405		409,181
Learfield Communications LLC, Term Loan, 12/01/23(m)			965		967,790
Lions Gate Capital Holdings LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.29%, 03/24/25			559		556,746
Midcontinent Communications, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.28%, 08/15/26			218		219,437
Nexstar Broadcasting, Inc., Term Loan, 09/18/26(m)			476		477,933
Radiate Holdco LLC, 1st Lien Term Loan, 02/01/24(m)			978		973,903
Telenet Financing LLC, Term Loan, 08/15/26(m)			555		554,971
Trader Corp., Term Loan, 09/28/23(d)(m)			1,725		1,716,739
Univision Communications, Inc., Term Loan C5, (LIBOR USD 1 Month + 2.75%), 4.79%, 03/15/24			517		501,543
Virgin Media Bristol LLC, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.53%, 01/15/26			747		747,000
					15,776,151
Metals & Mining — 0.1%
Ball Metalpack Finco LLC, Term Loan, 07/31/25(m)			320		299,783
Equinox Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 3.00%), 5.04%, 03/08/24			1,107		1,106,704
					1,406,487
Multiline Retail — 0.0%
Leslie’s Poolmart, Inc., Term Loan B, (LIBOR USD 1 Month + 3.50%), 5.54%, 08/16/23			245		233,043
Neiman Marcus Group Ltd. LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 6.00%), 8.06%, 10/25/23			377		285,835
					518,878
Multi-Utilities — 0.1%
Exgen Renewables IV LLC, Term Loan, 11/28/24(m)			728		711,535
USIC Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.29%, 12/08/23			198		196,530
					908,065

Security		Par (000)		Value
Oil, Gas & Consumable Fuels — 0.2%
BCP Raptor II LLC, Term Loan, (LIBOR USD 1 Month + 4.75%), 6.79%, 11/03/25	USD		136	$	121,528
California Resources Corp., Term Loan, 12/31/21(m)			649		563,123
CNX Resources Corp., Term Loan, 11/28/22(m)			284		281,166
EURO Garages Ltd., Term Loan B, (LIBOR USD 3 Month + 4.00%), 6.10%, 02/07/25			892		880,920
EURO Garages Ltd., Term Loan B1, (LIBOR USD 3 Month + 4.00%), 6.10%, 02/07/25			113		111,831
Midcoast Operating LP, Term Loan, (LIBOR USD 3 Month + 5.50%), 7.60%, 06/30/25			182		178,341
					2,136,909
Personal Products — 0.1%
Sunshine Luxembourg VII SARL, Term Loan, 09/23/26(m)			768		771,203
Pharmaceuticals — 0.8%
Amneal Pharmaceuticals LLC, Term Loan B18, (LIBOR USD 1 Month + 3.50%), 5.56%, 03/21/25			428		364,111
Bausch Health Cos., Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 06/02/25			2,636		2,645,845
Catalent, Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.29%, 05/08/26			838		839,700
Endo Pharmaceuticals, Inc., Term Loan B, 04/29/24(m)			735		667,737
Grifols Worldwide Operations Ltd., Term Loan, (LIBOR USD 3 Month + 2.25%), 4.20%, 01/31/25			699		702,257
Jaguar Holding Co. I, Term Loan, 08/18/22(m)			3,562		3,563,007
Mallinckrodt International Finance SA, 1st Lien Term Loan B, (LIBOR USD 3 Month + 2.75%), 4.85%, 09/24/24			153		113,951
National Veterinary Associates, Inc., Term Loan B3, (LIBOR USD 1 Month + 2.75%), 4.79%, 02/02/25			638		636,791
					9,533,399
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, 02/06/26(m)			1,658		1,667,766
Real Estate Management & Development — 0.1%
ESH Hospitality, Inc., Term Loan B, (LIBOR USD 1 Month + 2.00%), 4.04%, 09/18/26			433		435,157
Forest City Enterprises LP, Term Loan B, (LIBOR USD 1 Month + 4.00%), 6.04%, 12/08/25			480		483,372
Realogy Group LLC, Term Loan, (LIBOR USD 1 Month + 2.25%), 4.30%, 02/08/25			244		231,570
					1,150,099
Road & Rail — 0.2%
Uber Technologies, Inc., Term Loan(m):(m)
07/13/23			1,523		1,510,171
03/14/25			197		195,881
					1,706,052
Semiconductors & Semiconductor Equipment — 0.1%
Microchip Technology, Inc., Term Loan, (LIBOR USD 1 Month + 2.00%), 4.05%, 05/29/25			567		567,670
ON Semiconductor Corp., Term Loan B, 09/19/26(m)			228		229,416
					797,086

S C H E D U L E S   O F   I N V E S T M E N T S 37

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Software — 1.8%
CERENCE, Inc., Term Loan, 09/30/24(d)(m)	USD		332	$	312,080
DTI Holdco, Inc., Term Loan, (LIBOR USD 3 Month + 4.75%), 7.01%, 09/29/23			314		287,975
Infor US, Inc., Term Loan, 02/01/22(m)			3,555		3,557,347
Informatica LLC, Term Loan B, (LIBOR USD 1 Month + 3.25%), 5.29%, 08/05/22			2,207		2,215,125
Kronos, Inc., 1st Lien Term Loan B, 11/01/23(m)			3,195		3,200,541
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.50%, 11/01/24			365		370,019
McAfee LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 09/30/24			1,933		1,936,790
PowerSchool Group LLC, 1st Lien Term Loan, 07/31/25(m)			464		455,761
Refinitiv US Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 10/01/25			2,049		2,059,179
RP Crown Parent LLC, 1st Lien Term Loan, 10/12/23(m)			1,105		1,105,269
SolarWinds Holdings, Inc., Term Loan B, 02/05/24(m)			2,206		2,207,203
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.29%, 04/16/25			225		225,233
TIBCO Software, Inc., Term Loan, (LIBOR USD 1 Month + 4.00%), 6.07%, 06/30/26			1,871		1,871,685
Ultimate Software Group, Inc. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 05/04/26			743		746,715
					20,550,922
Specialty Retail — 0.3%
Belron Finance US LLC, Term Loan B, (LIBOR USD 3 Month + 2.50%), 4.71%, 11/07/24(d)			559		559,977
Belron Finance US LLC, Term Loan B1, (LIBOR USD 3 Month + 2.50%), 4.68%, 11/06/25(d)			92		92,649
IAA, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.31%, 06/29/26			212		212,501
MED ParentCo LP, Term Loan, 07/31/26(m)			577		571,434
Midas Intermediate Holdco II LLC, Term Loan B, (LIBOR USD 3 Month + 2.75%), 4.85%, 08/18/21			433		417,241
Optiv, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 02/01/24(d)			105		80,713
PetSmart, Inc., Term Loan, 03/11/22(m)			965		940,277
					2,874,792
Technology Hardware, Storage & Peripherals — 0.1%
Western Digital Corp., 1st Lien Term Loan B, (LIBOR USD 1 Month + 1.75%), 3.86%, 04/29/23			1,528		1,522,148
Trading Companies & Distributors — 0.2%
Beacon Roofing Supply, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.29%, 01/02/25			471		469,301
HD Supply, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 3.79%, 10/17/23			1,007		1,010,249
United Rentals, Inc., Term Loan, (LIBOR USD 1 Month + 1.75%), 3.79%, 10/31/25			207		207,425
					1,686,975
Wireless Telecommunication Services — 0.3%
Digicel International Finance Ltd., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.34%, 05/27/24			584		504,780
Hargray Communications Group, Inc., Term Loan, 05/16/24(m)			457		456,046

Security		Par (000)		Value
Wireless Telecommunication Services (continued)
New LightSquared LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%), 0.00%, 12/07/20	USD		378	$	295,414
SBA Senior Finance II LLC, 2nd Lien Term Loan B, 04/06/25(m)			1,241		1,241,318
Sprint Communications, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 2.50%), 4.56%, 02/02/24			456		452,664
					2,950,222
Total Floating Rate Loan Interests — 23.0% (Cost: $261,584,739)					260,412,472
Foreign Agency Obligations — 1.3%
Chile — 0.2%
Corp. Nacional del Cobre de Chile, 3.63%, 08/01/27			500		525,156
Empresa de Transporte de Pasajeros Metro SA, 4.75%, 02/04/24			520		564,574
Empresa Nacional del Petroleo:
3.75%, 08/05/26			600		620,438
5.25%, 11/06/29(b)			220		252,271
					1,962,439
China — 0.1%
Chengdu Xingcheng Investment Group Co. Ltd., 2.50%, 03/20/21	EUR		100		105,179
China Minmetals Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.72%), 3.75%(a)(j)	USD		300		300,000
Guangxi Financial Investment Group Co. Ltd., 5.75%, 01/23/21			200		191,730
Xi’an Municipal Infrastructure Construction Investment Group Corp. Ltd., 4.00%, 06/24/22			215		216,613
					813,522
Colombia — 0.1%
Ecopetrol SA, 4.13%, 01/16/25			1,200		1,258,920
France — 0.0%
Electricite de France SA, (GBP Swap 13 Year + 3.96%), 6.00%(a)(j)	GBP		200		267,181
India — 0.3%
Indian Oil Corp. Ltd., 4.75%, 01/16/24	USD		1,200		1,279,125
Oil lndia Ltd., 5.13%, 02/04/29			640		726,600
Power Finance Corp. Ltd.:
3.75%, 06/18/24			315		321,492
3.75%, 12/06/27			303		302,716
4.50%, 06/18/29			365		381,311
Rural Electrification Corp. Ltd., 4.63%, 03/22/28			497		521,539
					3,532,783
Indonesia — 0.2%
Bank Mandiri Persero Tbk. PT, 3.75%, 04/11/24			205		211,791
Indonesia Asahan Aluminium Persero PT, 5.71%, 11/15/23(b)			200		220,562
Pertamina Persero PT, 4.30%, 05/20/23			1,250		1,313,672
Perusahaan Listrik Negara PT, 5.50%, 11/22/21			270		286,031
					2,032,056
Israel — 0.1%
Israel Electric Corp. Ltd., Series 6, 5.00%, 11/12/24(b)			660		725,381

38 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Mexico — 0.0%
Petroleos Mexicanos:
6.50%, 03/13/27	USD		461	$	478,907
5.35%, 02/12/28			140		133,963
					612,870
Morocco — 0.0%
OCP SA, 4.50%, 10/22/25			600		630,000
Peru — 0.1%
Corp. Financiera de Desarrollo SA, 4.75%, 07/15/25			400		440,500
Petroleos del Peru SA, 5.63%, 06/19/47			500		593,750
					1,034,250
South Africa — 0.1%
Transnet SOC Ltd., 4.00%, 07/26/22			660		664,744
Sri Lanka — 0.1%
SriLankan Airlines Ltd., 7.00%, 06/25/24			1,700		1,694,066
Total Foreign Agency Obligations — 1.3% (Cost: $14,623,912)					15,228,212
Foreign Government Obligations — 0.3%
Indonesia — 0.1%
Perusahaan Penerbit SBSN Indonesia III, 4.45%, 02/20/29			825		910,594
Maldives — 0.1%
Republic of Maldives, 7.00%, 06/07/22			900		850,500
Qatar — 0.0%
State of Qatar, 3.25%, 06/02/26			500		523,750
Sri Lanka — 0.1%
Democratic Socialist Republic of Sri Lanka, 6.83%, 07/18/26			1,000		987,812
Total Foreign Government Obligations — 0.3% (Cost: $3,212,844)					3,272,656
		Shares
Investment Companies — 6.6%
Invesco Senior Loan ETF			530,000		11,972,700
iShares 0-5 Year High Yield Corporate Bond ETF*			530,200		24,648,998
iShares Floating Rate Bond ETF*			491,932		25,073,774
iShares J.P. Morgan USD Emerging Markets Bond ETF*			32,813		3,719,353
SPDR S&P Oil & Gas Exploration & Production ETF			10,302		230,353
VanEck Vectors J.P. Morgan EM Local Currency Bond ETF			277,366		9,153,078
Total Investment Companies — 6.6% (Cost: $74,816,845)					74,798,256
		Par (000)
Non-Agency Mortgage-Backed Securities — 2.7%
Collateralized Mortgage Obligations — 1.1%
Alternative Loan Trust:
Series 2006-OA11, Class A1B, 2.21%, 09/25/46(c)			3,161		2,985,687
Series 2007-3T1, Class 1A1, 6.00%, 04/25/37			2,583		1,807,569
CGMSE, Series 2014-2X, 5.70%, 11/17/31(c)	EUR		117		122,474

Security			Par (000)		Value
Collateralized Mortgage Obligations (continued)
LSTAR Securities Investment Trust, Series 2019-1, Class A1, 3.79%, 03/01/24(b)(c)		USD		1,206	$	1,206,656
MCM Trust, Series 2018-NPL2, Class A, 4.00%, 10/25/28(b)(d)(f)				3,159		3,182,368
New Residential Mortgage Loan Trust, Series 2019-RPL1, Class A1, 4.33%, 02/26/24(b)(f)				3,321		3,343,950
						12,648,704
Commercial Mortgage-Backed Securities — 1.3%
BAMLL Commercial Mortgage Securities Trust, Series 2016-ISQ, Class E, 3.73%, 08/14/34(b)(c)				1,000		1,002,024
Citigroup Commercial Mortgage Trust(b):
Series 2015-SHP2, Class B, 3.88%, 07/15/27(c)				2,000		2,002,457
Series 2016-GC37, Class D, 2.79%, 04/10/49				1,000		853,738
Commercial Mortgage Trust, Series 2016- 667M, Class D, 3.28%, 10/10/36(b)(c)				1,000		1,013,731
CSAIL Commercial Mortgage Trust, Series 2019-C17, Class C, 3.93%, 09/15/52				2,858		2,971,018
DBJPM Mortgage Trust, Series 2016-C3, Class D, 3.63%, 08/10/49(b)(c)				530		514,200
DBUBS Mortgage Trust, Series 2017-BRBK, Class D, 3.65%, 10/10/34(b)(c)				990		1,018,907
GS Mortgage Securities Trust, Series 2015-GC32, Class D, 3.35%, 07/10/48				440		419,236
JPMCC Commercial Mortgage Securities Trust, Series 2017-JP5, Class D, 4.80%, 03/15/50(b)(c)				990		1,041,757
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2015-C23, Class D, 4.27%, 07/15/50(b)(c)				1,000		1,005,554
Series 2015-C25, Class D, 3.07%, 10/15/48				650		630,729
ROCKT, Series 2019-1A, 6.47%, 04/20/32(c)				500		498,246
Wells Fargo Commercial Mortgage Trust(c):
Series 2015-C30, Class C, 4.65%, 09/15/58				1,000		1,062,916
Series 2016-NXS5, Class D, 5.04%, 01/15/59				750		800,069
						14,834,582
Interest Only Commercial Mortgage-Backed Securities — 0.3%(c)
Benchmark Mortgage Trust, Series 2019-B13, Class XA, 1.00%, 08/15/57				25,708		2,213,837
JPMorgan Chase Commercial Mortgage Securities Trust, Series 2016-JP3, Class XC, 0.75%, 08/15/49(b)				8,700		388,107
						2,601,944
Total Non-Agency Mortgage-Backed Securities — 2.7% (Cost: $29,274,292)						30,085,230
	Beneficial Interest (000)
Other Interests — 0.0%(n)
Capital Markets — 0.0%
Millennium Corp. Claim(d)(h)				811		—
Total Other Interests — 0.0%						—

S C H E D U L E S   O F   I N V E S T M E N T S 39

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Preferred Securities — 0.4%
Capital Trusts — 0.4%
Banks — 0.2%(j)(l)
Bank of America Corp.:
Series X. 6.25%	USD		370	$	402,375
Series Z, 6.50%			30		33,375
Series AA, 6.10%			240		262,200
Series DD, 6.30%			60		67,500
JPMorgan Chase & Co., Series FF, 5.00%			1,630		1,666,463
Lloyds Banking Group pic, 6.41%(b)			100		105,000
Wells Fargo & Co., Series U, 5.87%			80		88,176
					2,625,089
Capital Markets — 0.1%(j)(l)
Goldman Sachs Group, Inc. (The), Series P, 5.00%			33		32,396
Morgan Stanley, Series J, 5.55%			1,250		1,267,313
					1,299,709
Oil, Gas & Consumable Fuels — 0.1%
Energy Transfer Operating LP, Series B, 6.63%(j)(l)			1,000		945,000
Total Capital Trusts — 0.4% (Cost: $4,852,782)					4,869,798
		Shares
Preferred Stocks — 0.0%
Banks — 0.0%
CF-B L2 (D), LLC (Acquired 4/08/15 - 12/15/15, cost $53,170)(j)(o)			56,090		40,536
Total Preferred Stocks — 0.0% (Cost: $54,874)					40,536
Total Preferred Securities — 0.4% (Cost: $4,907,656)					4,910,334
		Par (000)
U.S. Government Sponsored Agency Securities — 0.1%
Collateralized Mortgage Obligations — 0.1%
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes, Series 2018-DNA1, Class B1, (LIBOR USD 1 Month + 3.15%), 5.17%, 07/25/30(a)			1,500		1,521,327
Total U.S. Government Sponsored Agency Securities — 0.1% (Cost: $1,500,000)					1,521,327
U.S. Treasury Obligations — 2.1%
U.S. Treasury Notes:
2.63%, 07/31/20			22,000		22,136,641
3.13%, 11/15/28			1,000		1,122,656
Total U.S. Treasury Obligations — 2.1% (Cost: $23,032,703)					23,259,297

Security	Shares		Value
Warrants — 0.0%
Media — 0.0%
iHeartMedia, Inc. (Issued/exercisable 06/05/19, 1 share for 1 warrant, Expires 12/31/19, Strike Price USD 1.00)(h)		5,989	$	89,829
Total Warrants — 0.0%				89,829
Total Long-Term Investments — 92.2% (Cost: $1,036,375,410)				1,045,971,274
Short-Term Securities — 11.2%(p)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.87%*		124,707,965		124,707,965
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.77%		2,037,771		2,037,771
Total Short-Term Securities — 11.2% (Cost: $126,745,736)				126,745,736
Total Options Purchased — 0.0% (Cost: $2,985,290)				834,323
Total Investments Before Options Written — 103.4% (Cost: $1,166,106,436)				1,173,551,333
Total Options Written — (0.0)%
(Premium Received — $1,086,472)				(338,247	)
Total Investments Net of Options Written — 103.4% (Cost: $1,165,019,964)				1,173,213,086
Liabilities in Excess of Other Assets — (3.4)%				(38,678,106	)
Net Assets — 100.0%			$	1,134,534,980

40 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

^(a)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

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

^(c)  Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

^(e)  Zero-coupon bond.

^(f)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(g)  Issuer filed for bankruptcy and/or is in default.

^(h)  Non-income producing security.

⁽ⁱ⁾  Convertible security.

^(j)  Perpetual security with no stated maturity date.

^(k)  Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

^(l)  Variable rate security. Rate shown is the rate in effect as of period end.

^(m)  Represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.

⁽ⁿ⁾  Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

^(o)  Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $40,536, representing less than 0.05% of its net assets as of period end, and an original cost of $53,170.

^(p)  Annualized 7-day yield as of period end.

* During the year ended September 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Shares Held at 09/30/18	Shares Purchased	Shares Sold	Shares Held at 09/30/19		Value at 09/30/19		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund,
Institutional Class(b)	13,740,642	110,967,323	—	124,707,965	$	124,707,965	$	1,680,399	$	—		$	—
iShares 0-5 Year High Yield Corporate Bond ETF	—	530,200	—	530,200		24,648,998		217,165		—			(17,057)
iShares Floating Rate Bond ETF	—	491,932	—	491,932		25,073,774		306,536		—			63,951
iShares J.P. Morgan USD Emerging Markets Bond ETF	80,842	46,279	(94,308)	32,813		3,719,353		364,176		129,802			118,146
					$	178,150,090	$	2,568,276	$	129,802		$	165,040

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents net shares purchased (sold).

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

S C H E D U L E S   O F   I N V E S T M E N T S 41

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury Long Bond		191		12/19/19	$	31,002	$	(451,556)
U.S. Treasury Ultra Bond		119		12/19/19		22,837		(345,176)
EURO STOXX 50 lndex		3		12/20/19		116		1,670
STOXX 600 Banks lndex		7		12/20/19		50		167
U.S. Treasury 2 Year Note		43		12/31/19		9,267		(25,538)
U.S. Treasury 5 Year Note		449		12/31/19		53,498		(369,229)
								(1,189,662)
Short Contracts
Euro-Bobl		24		12/06/19		3,548		15,393
Euro-Bund		17		12/06/19		3,229		26,927
Euro-Schatz		1		12/06/19		122		393
U.S. Treasury 10 Year Note		152		12/19/19		19,808		(19,208)
U.S. Treasury 10 Year Ultra Note		299		12/19/19		42,579		545,320
Long Gilt		2		12/27/19		330		(1,967)
								566,858
							$	(622,804)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	363,696	EUR	330,000	BNP Paribas SA		10/03/19	$	3,985
USD	799,229	EUR	730,000	Bank of America NA		10/11/19		3,008
USD	11,044	EUR	10,000	Citibank NA		10/11/19		137
USD	965,143	EUR	880,000	Goldman Sachs International		10/11/19		5,314
USD	60,875,909	EUR	55,220,000	JPMorgan Chase Bank NA		10/11/19		646,615
USD	785,420	EUR	710,000	UBS AG		10/11/19		11,012
USD	161,910	GBP	130,000	Citibank NA		10/11/19		2,007
USD	12,436	GBP	10,000	JPMorgan Chase Bank NA		10/11/19		136
USD	7,913,469	GBP	6,410,000	UBS AG		10/11/19		29,026
USD	554,699	CNY	3,956,262	Bank of America NA		12/12/19		1,640
USD	105,298	EUR	94,680	Barclays Bank plc		12/12/19		1,532
USD	3,336,550	JPY	356,844,048	Bank of America NA		12/12/19		19,226
								723,638
EUR	24,000,000	USD	26,298,694	Morgan Stanley & Co. International plc		10/11/19		(121,529)
EUR	110,000	USD	120,987	UBS AG		10/11/19		(1,008)
GBP	3,170,000	USD	3,916,829	BNP Paribas SA		10/11/19		(17,659)
USD	2,455,619	HKD	19,245,671	Bank of America NA		12/12/19		(1,808)
USD	1,088,910	TWD	33,736,596	Bank of America NA		12/12/19		(4,013)
								(146,017)
Net Unrealized Appreciation							$	577,621

Exchange-Traded Options Purchased

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
iShares MSCI Emerging Markets ETF		44,538		10/18/19	USD	43.50	USD	182,027	$	133,614
iShares Russell 2000 ETF		11,081		10/18/19	USD	171.00	USD	167,700		16,622
SPDR S&P 500 ETF Trust		9,234		10/18/19	USD	314.00	USD	274,037		23,085

42 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

Exchange-Traded Options Purchased (continued)

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
EURO STOXX 50 Index		35		12/20/19	EUR	3,800.00	EUR	1,249	$	3,414
										176,735
Put
EURO STOXX 50 Index		1,211		10/18/19	EUR	3,250.00	EUR	43,226		40,258
									$	216,993

OTC Credit Default Swaptions Purchased

Description

Paid by the Fund

Received by the Fund

Counterparty

Notional Amount (000)(a)

Value

Rate/Reference

Frequency

Rate/Reference

Frequency

Expiration Date

Exercise Price

Put

Bought Protection on 5-Year Credit Default Swap

1.00%

Quarterly

CDX.NA.IG.32.V1

Quarterly

Morgan Stanley & Co. International plc

USD

USD

70.00

USD              25,000

$

24,634

Bought Protection on 5-Year Credit Default Swap

1.00%

Quarterly

CDX.NA.IG.32.V1

Quarterly

Morgan Stanley & Co. International plc

USD

USD

70.00

USD            159,000

156,671

$

181,305

^(a)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

OTC Interest Rate Swaptions Purchased

Description

Paid by the Fund

Received by the Fund

Counterparty

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Expiration Date

Exercise Price

Put

10-Year Interest Rate Swap

2.90%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

03/18/20

2.90

%

USD            42,000

$

6,566

30-Year Interest Rate Swap

2.50%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

08/13/21

2.50

%

USD            18,000

429,459

$

436,025

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
iShares MSCI Emerging Markets ETF		44,538		10/18/19	USD	44.00	USD	182,027	$	(222,689)
iShares Russell 2000 ETF		11,081		10/18/19	USD	173.00	USD	167,700		(11,081)
SPDR S&P 500 ETF Trust		9,234		10/18/19	USD	315.00	USD	274,037		(23,085)
										(256,855)
Put
EURO STOXX 50 Index		1,211		10/18/19	EUR	3,150.00	EUR	43,226		(21,779)
									$	(278,634)

S C H E D U L E S   O F   I N V E S T M E N T S 43

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

OTC Credit Default Swaptions Written

Paid by the Fund

Received by the Fund

Description

Rate/Reference

Frequency

Rate/Reference

Frequency

Counterparty

Expiration Date

Credit Rating (a)

Exercise Price

Notional Amount (000) (b)

Value

Put

Sold Protection on 5-Year Credit Default Swap

CDX.NA.IG.32.V1

Quarterly

1.00%

Quarterly

Morgan Stanley & Co. International plc

12/18/19

NR

USD

95.00

USD      25,000

$

(8,100)

Sold Protection on 5-Year Credit Default Swap

CDX.NA.IG.32.V1

Quarterly

1.00%

Quarterly

Morgan Stanley & Co. International plc

12/18/19

NR

USD

95.00

USD    159,000

(51,513)

$

(59,613)

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

Centrally Cleared Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund		Payment     Frequency	Termination Date	Credit     Rating	(a)		Notional Amount (000)	(b)		Value		Upfront Premium Paid   (Received)		Unrealized Appreciation   (Depreciation)
ITRAXX.FINSR.28.V2	1.00	%	Quarterly	12/20/22	NR		EUR	100		$	2,336	$	1,449	$	887
CDX.NA.HY.32.V2	5.00	%	Quarterly	06/20/24	BB+		USD	54,450			3,966,671		3,081,338		885,333
ITRAXX.EUR.Main.31.V2	1.00	%	Quarterly	06/20/24	BBB+		EUR	700			19,020		15,143		3,877
ITRAXX.FINSR.31.V2	1.00	%	Quarterly	06/20/24	A-		EUR	1,000			22,274		17,383		4,891
										$	4,010,301	$	3,115,313	$	894,988

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional     Amount (000)		Value		Upfront Premium Paid   (Received)		Unrealized Appreciation   (Depreciation)
UPC Holding BV		5.00	%		Quarterly	Bank of America NA		06/20/24	EUR	100	$	(21,569)	$	(23,343)	$	1,774
UPC Holding BV		5.00	%		Quarterly	BNP Paribas SA		06/20/24	EUR	31		(6,681)		(7,290)		609
UPC Holding BV		5.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/24	EUR	170		(36,669)		(37,981)		1,312
											$	(64,919)	$	(68,614)	$	3,695

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund		Payment Frequency	Counterparty	Termination Date	Credit Rating (a)		Notional Amount (000)	(b)		Value		Upfront Premium Paid   (Received)		Unrealized Appreciation   (Depreciation)
Casino Guichard Perrachon SA	1.00	%	Quarterly	Citibank NA	06/20/23	B	EUR	16		$	(2,900)	$	(1,786)	$	(1,114)
Casino Guichard Perrachon SA	1.00	%	Quarterly	Citibank NA	06/20/23	NR	EUR	33			(5,991)		(3,557)		(2,434)
Casino Guichard Perrachon SA	1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/23	NR	EUR	33			(5,996)		(3,560)		(2,436)
Casino Guichard Perrachon SA	1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/23	NR	EUR	20			(3,598)		(2,000)		(1,598)
Casino Guichard Perrachon SA	1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/23	NR	EUR	13			(2,399)		(1,333)		(1,066)
Garfunkelux Holdco 2 SA	5.00	%	Quarterly	Credit Suisse International	06/20/23	B-	EUR	100			2,358		1,033		1,325

44 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

OTC Credit Default Swaps — Sell Protection (continued)

Reference Obligation/Index	Financing Rate Received by the Fund		Payment Frequency	Counterparty	Termination Date	Credit Rating (a)		Notional Amount (000)	(b)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Casino Guichard Perrachon SA	1.00	%	Quarterly	Goldman Sachs International	12/20/23	NR	EUR	160		$	(33,030)	$	(21,502)	$	(11,528)
CenturyLink, Inc.	1.00	%	Quarterly	Barclays Bank plc	12/20/23	NR	USD	30			(944)		(1,944)		1,000
Chesapeake Energy Corp.	5.00	%	Quarterly	Barclays Bank plc	12/20/23	B+	USD	23			(5,185)		37		(5,222)
Chesapeake Energy Corp.	5.00	%	Quarterly	Barclays Bank plc	12/20/23	B+	USD	54			(12,173)		428		(12,601)
Garfunkelux Holdco 2 SA	5.00	%	Quarterly	Credit Suisse International	12/20/23	B-	EUR	19			351		303		48
Garfunkelux Holdco 2 SA	5.00	%	Quarterly	Credit Suisse International	12/20/23	B-	EUR	81			1,531		1,321		210
Casino Guichard Perrachon SA	5.00	%	Quarterly	Credit Suisse International	06/20/24	B	EUR	61			(3,661)		(4,977)		1,316
Casino Guichard Perrachon SA	5.00	%	Quarterly	Credit Suisse International	06/20/24	B	EUR	69			(4,142)		(4,879)		737
Garfunkelux Holdco 2 SA	5.00	%	Quarterly	Credit Suisse International	12/20/24	B-	EUR	60			513		(841)		1,354
Tesco plc	1.00	%	Quarterly	Barclays Bank plc	12/20/25	BB+	EUR	100			(2,708)		(2,649)		(59)
Telecom Italia SpA	1.00	%	Quarterly	Citibank NA	06/20/26	BB+	EUR	66			(5,468)		(9,505)		4,037
Virgin Media Finance plc	5.00	%	Quarterly	Credit Suisse International	12/20/26	B	EUR	130			30,649		32,879		(2,230)
Tesco plc	1.00	%	Quarterly	Morgan Stanley & Co. International plc	12/20/28	BB+	EUR	370			(28,526)		(34,684)		6,158
										$	(81,319)	$	(57,216)	$	(24,103)

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
3 month LIBOR	London Interbank Offered Rate		2.09%

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written

	Swap Premiums Paid	Swap Premiums Received	Unrealized       Appreciation		Unrealized       Depreciation		Value
Centrally Cleared Swaps(a)	$        3,115,313	$                  —	$	894,988	$	—	$	—
OTC Swaps	36,001	(161,831)		19,880		(40,288)		—
Options Written	N/A	N/A		830,094		(81,869)		(338,247)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

S C H E D U L E S   O F   I N V E S T M E N T S 45

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	1,837	$	—	$	588,033	$	—	$	589,870
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		723,638		—		—		723,638
Options purchased
Investments at value — unaffiliated(b)		—		181,305		216,993		—		436,025		—		834,323
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		894,988		—		—		—		—		894,988
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		55,881		—		—		—		—		55,881
	$	—	$	1,132,174	$	218,830	$	723,638	$	1,024,058	$	—	$	3,098,700
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		1,212,674		—		1,212,674
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		146,017		—		—		146,017
Options written
Options written at value		—		59,613		278,634		—		—		—		338,247
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		202,119		—		—		—		—		202,119
	$	—	$	261,732	$	278,634	$	146,017	$	1,212,674	$	—	$	1,899,057

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b)  Includes options purchased at value as reported in the Schedule of Investments.

For the year ended September 30, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	(91,314)	$	—	$	11,716,687	$	—	$	11,625,373
Forward foreign currency exchange contracts		—		—		—		5,995,265		—		—		5,995,265
Options purchased(a)		—		37,523		(1,533,444)		(265,203)		(1,506,306)		—		(3,267,430)
Options written		—		31,457		1,402,036		—		353,894		—		1,787,387
Swaps		—		(1,495,099)		—		—		(56,029)		—		(1,551,128)
	$	—	$	(1,426,119)	$	(222,722)	$	5,730,062	$	10,508,246	$	—	$	14,589,467
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		(2,928)		—		(657,471)		—		(660,399)
Forward foreign currency exchange contracts		—		—		—		(85,086)		—		—		(85,086)
Options purchased(b)		—		(223,495)		(1,215,795)		—		(213,902)		—		(1,653,192)
Options written		—		97,037		524,497		—		—		—		621,534
Swaps		—		830,587		—		—		—		—		830,587
	$	—	$	704,129	$	(694,226)	$	(85,086)	$	(871,373)	$	—	$	(946,556)

^(a)  Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)  Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

46 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	178,179,571
Average notional value of contracts — short		64,983,460
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		76,889,275
Average amounts sold — in USD		8,051,580
Options:
Average value of option contracts purchased		330,043
Average value of option contracts written		169,354
Average notional value of swaption contracts purchased		104,555,000
Average notional value of swaption contracts written		55,565,000
Credit default swaps:
Average notional value — buy protection		139,138
Average notional value — sell protection		23,299,756
Total return swaps:
Average notional value		168,250

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	34,086	$	34,486
Forward foreign currency exchange contracts		723,638		146,017
Options(a)		834,323		338,247
Swaps — Centrally cleared		167,064		—
Swaps — OTC(b)		55,881		202,119
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	1,814,992	$	720,869
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(418,143)		(313,120)
Total derivative assets and liabilities subject to an MNA	$	1,396,849	$	407,749

^(a)  Includes options purchased at value which is included in Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Schedule of Investments.

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

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (b)(c)
Bank of America NA	$	25,648	$	(25,648)	$	—	$	—	$	—
Barclays Bank plc		2,997		(2,997)		—		—		—
BNP Paribas SA		4,594		(4,594)		—		—		—
Citibank NA		12,747		(12,747)		—		—		—
Credit Suisse International		40,526		(12,927)		—		—		27,599
Goldman Sachs International		5,314		(5,314)		—		—		—
JPMorgan Chase Bank NA		1,077,522		(49,974)		—		(310,000)		717,548
Morgan Stanley & Co. International plc		187,463		(187,463)		—		—		—
UBS AG		40,038		(1,008)		—		—		39,030
	$	1,396,849	$	(302,672)	$	—	$	(310,000)	$	784,177

S C H E D U L E S   O F   I N V E S T M E N T S 47

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available     for Offset (a)		Non-cash Collateral Pledged		Cash         Collateral Pledged (d)		Net Amount of Derivative Liabilities (c)(e)
Bank of America NA	$	29,164	$	(25,648)	$	—	$	—	$	3,516
Barclays Bank plc		22,475		(2,997)		—		—		19,478
BNP Paribas SA		24,949		(4,594)		—		—		20,355
Citibank NA		18,396		(12,747)		—		—		5,649
Credit Suisse International		12,927		(12,927)		—		—		—
Goldman Sachs International		33,030		(5,314)		—		—		27,716
JPMorgan Chase Bank NA		49,974		(49,974)		—		—		—
Morgan Stanley & Co. International plc		215,826		(187,463)		—		(28,363)		—
UBS AG		1,008		(1,008)		—		—		—
	$	407,749	$	(302,672)	$	—	$	(28,363)	$	76,714

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

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(d)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(e)  Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	81,654,164	$	6,491,103	$	88,145,267
Common Stocks:
Chemicals		494,891		—		—		494,891
Commercial Services & Supplies		—		—		6,675		6,675
Containers & Packaging		132,318		—		—		132,318
Diversified Telecommunication Services		—		133,461		—		133,461
Electric Utilities		—		—		61,232		61,232
Equity Real Estate Investment Trusts (REITs)		107,378		—		—		107,378
Health Care Providers & Services		—		27		—		27
Hotels, Restaurants & Leisure		80,960		—		—		80,960
Machinery		—		15,565		—		15,565
Media		205,793		74,824		—		280,617
Metals & Mining		289,381		—		—		289,381
Software		113		—		—		113
Corporate Bonds (a)		—		542,645,776		—		542,645,776
Floating Rate Loan Interests:
Aerospace & Defense		—		5,733,207		271,647		6,004,854
Air Freight & Logistics		—		680,358		—		680,358
Airlines		—		3,065,558		—		3,065,558
Auto Components		—		2,580,001		—		2,580,001
Building Products		—		1,449,884		—		1,449,884
Capital Markets		—		4,081,202		434,010		4,515,212
Chemicals		—		9,984,438		622,043		10,606,481
Commercial Services & Supplies		—		12,984,442		—		12,984,442
Communications Equipment		—		379,712		—		379,712
Construction & Engineering		—		940,253		—		940,253
Construction Materials		—		4,514,191		—		4,514,191
Containers & Packaging		—		10,099,584		—		10,099,584
Diversified Consumer Services		—		5,050,666		481,244		5,531,910
Diversified Financial Services		—		10,582,660		—		10,582,660
Diversified Telecommunication Services		—		6,244,829		—		6,244,829
Electric Utilities		—		1,266,918		—		1,266,918

48 2 0 1 9   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  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

	Level 1		Level 2		Level 3		Total
Electrical Equipment	$	—	$	2,329,433	$	—	$	2,329,433
Energy Equipment & Services		—		422,209		—		422,209
Entertainment		—		3,901,059		746,967		4,648,026
Equity Real Estate Investment Trusts (REITs)		—		2,902,835		608,000		3,510,835
Food & Staples Retailing		—		3,188,556		—		3,188,556
Food Products		—		7,065,541		—		7,065,541
Health Care Equipment & Supplies		—		1,850,329		—		1,850,329
Health Care Providers & Services		—		11,613,555		478,200		12,091,755
Health Care Technology		—		4,068,304		—		4,068,304
Hotels, Restaurants & Leisure		—		21,105,062		576,804		21,681,866
Household Durables		—		114,288		—		114,288
Independent Power and Renewable Electricity Producers		—		1,580,268		—		1,580,268
Industrial Conglomerates		—		4,119,583		744,669		4,864,252
Insurance		—		13,032,421		—		13,032,421
IT Services		—		24,293,195		391,691		24,684,886
Life Sciences Tools & Services		—		3,149,928		—		3,149,928
Machinery		—		4,281,820		443,754		4,725,574
Media		—		14,059,412		1,716,739		15,776,151
Metals & Mining		—		1,406,487		—		1,406,487
Multiline Retail		—		518,878		—		518,878
Multi-Utilities		—		908,065		—		908,065
Oil, Gas & Consumable Fuels		—		2,136,909		—		2,136,909
Personal Products		—		771,203		—		771,203
Pharmaceuticals		—		9,533,399		—		9,533,399
Professional Services		—		1,667,766		—		1,667,766
Real Estate Management & Development		—		1,150,099		—		1,150,099
Road & Rail		—		1,706,052		—		1,706,052
Semiconductors & Semiconductor Equipment		—		797,086		—		797,086
Software		—		20,238,842		312,080		20,550,922
Specialty Retail		—		2,141,453		733,339		2,874,792
Technology Hardware, Storage & Peripherals		—		1,522,148		—		1,522,148
Trading Companies & Distributors		—		1,686,975		—		1,686,975
Wireless Telecommunication Services		—		2,950,222		—		2,950,222
Foreign Agency Obligations(a)		—		15,228,212		—		15,228,212
Foreign Government Obligations(a)		—		3,272,656		—		3,272,656
Investment Companies		74,798,256		—		—		74,798,256
Non-Agency Mortgage-Backed Securities		—		26,902,862		3,182,368		30,085,230
Capital Trusts(a)		—		4,869,798		—		4,869,798
U.S. Government Sponsored Agency Securities		—		1,521,327		—		1,521,327
U.S. Treasury Obligations		—		23,259,297		—		23,259,297
Warrants(a)		—		89,829		—		89,829
Short-Term Securities		126,745,736		—		—		126,745,736
Options Purchased:
Credit contracts		—		181,305		—		181,305
Equity contracts		216,993		—		—		216,993
Interest rate contracts		—		436,025		—		436,025
Unfunded Floating Rate Loan Interests(b)		—		1,691		—		1,691
Liabilities:
Unfunded Floating Rate Loan Interests(b)		—		(1,217)		—		(1,217)
Subtotal	$	203,071,819	$	952,136,887	$	18,302,565	$	1,173,511,271
Investments valued at NAV(c)								40,536
Total Investments							$	1,173,551,807
Derivative Financial Instruments(d)
Assets:
Credit contracts	$	—	$	914,868	$	—	$	914,868
Equity contracts		1,837		—		—		1,837
Foreign currency exchange contracts		—		723,638		—		723,638
Interest rate contracts		588,033		—		—		588,033
Liabilities:
Credit contracts		—		(99,901)		—		(99,901)
Equity contracts		(278,634)		—		—		(278,634)
Foreign currency exchange contracts		—		(146,017)		—		(146,017)

S C H E D U L E S   O F   I N V E S T M E N T S 49

Schedule of Investments  (continued) September 30, 2019 BlackRock Credit Strategies Income Fund

	Level 1		Level 2		Level 3		Total
Interest rate contracts	$	(1,212,674)	$	—	$	—	$	(1,212,674)
	$	(901,438)	$	1,392,588	$	—	$	491,150

^(a)  See above Schedule of Investments for values in each industry or country.

^(b)  Unfunded floating rate loan interests are valued at the unrealized appreciation (depreciation) on the commitment.

^(c)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(d)  Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

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

	Asset- Backed Securities		Common Stocks		Floating Rate Loan Interests		Non-Agency Mortgage- Backed Securities		Unfunded Floating Rate Loan Interests		Total
Investments:
Assets/Liabilities:
Opening balance, as of September 30, 2018	$	3,745,375	$	108,783	$	5,231,319	$	—	$	(110)	$	9,085,367
Transfers into level 3		—		—		2,276,310		—		—		2,276,310
Transfers out of level 3		(2,897,500)		—		(2,046,640)		—		—		(4,944,140)
Accrued discounts/premiums		—		—		4,240		—		—		4,240
Net realized gain (loss)		(26,777)		(15,521)		(127,658)		5,674		—		(164,282)
Net change in unrealized appreciation (depreciation)(a)(b)		71,650		22,776		(30,850)		31,114		110		94,800
Purchases		7,889,019		7,249		7,017,913		3,582,041		—		18,496,222
Sales		(2,290,664)		(55,380)		(3,763,447)		(436,461)		—		(6,545,952)
Closing balance, as of September 30, 2019	$	6,491,103	$	67,907	$	8,561,187	$	3,182,368	$	—	$	18,302,565
Net change in unrealized appreciation (depreciation) on investments still held at September 30, 2019 (b)	$	69,525	$	22,776	$	(47,170)	$	31,114	$	—	$	76,245

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

^(b) Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at September 30, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

The Fund’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.

See notes to financial statements.

50 2 0 1 9   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 September 30, 2019 BlackRock GNMA Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Non-Agency Mortgage-Backed Securities — 0.4%
Collateralized Mortgage Obligations — 0.4%
Seasoned Credit Risk Transfer Trust:
Series 2018-4, Class MA, 3.50%, 03/25/58	USD		1,177	$	1,225,744
Series 2019-2, Class MA, 3.50%, 08/25/58			674		704,948
					1,930,692
Total Non-Agency Mortgage-Backed Securities — 0.4% (Cost: $1,834,073)					1,930,692
U.S. Government Sponsored Agency Securities — 184.1%
Collateralized Mortgage Obligations — 10.1%
Federal Home Loan Mortgage Corp.:
Series 3745, Class ZA, 4.00%, 10/15/40			353		393,524
Series 3780, Class ZA, 4.00%, 12/15/40			665		746,283
Series 3960, Class PL, 4.00%, 11/15/41			900		1,007,283
Series 4325, Class ZX, 4.50%, 04/15/44			2,423		2,830,686
Series 4384, Class LB, 3.50%, 08/15/43			1,500		1,599,631
Federal National Mortgage Association:
Series 1996-48, Class Z, 7.00%, 11/25/26			190		205,893
Series 2010-134, Class KZ, 4.50%, 12/25/40			485		522,836
Series 2010-141, Class LZ, 4.50%, 12/25/40			356		386,939
Series 2011-8, Class ZA, 4.00%, 02/25/41			2,817		2,998,284
Series 2011-131, Class LZ, 4.50%, 12/25/41			322		345,651
Series 2017-76, Class PB, 3.00%, 10/25/57			1,125		1,175,461
Federal National Mortgage Association Variable Rate Notes, Series 2018-32, Class PS, (LIBOR USD 1 Month + 7.23%), 4.88%, 05/25/48(a)			1,839		2,032,398
Government National Mortgage Association:
Series 2009-122, Class PY, 6.00%, 12/20/39			730		819,175
Series 2016-123, Class LM, 3.00%, 09/20/46			400		424,168
Series 2019-5, Class P, 3.50%, 07/20/48			778		805,165
Government National Mortgage Association Variable Rate Notes(b):
Series 2009-31, Class PT, 3.63%, 05/20/39			288		297,607
Series 2014-107, Class WX, 6.82%, 07/20/39			1,348		1,535,697
Series 2015-55, Class A, 5.39%, 03/16/36			10,154		11,404,569
Series 2015-103, Class B, 6.90%, 01/20/40			6,377		7,305,480
Series 2015-187, Class C, 5.26%, 03/20/41			10,915		12,564,338
					49,401,068
Commercial Mortgage-Backed Securities — 1.0%
Federal Home Loan Mortgage Corp. Variable Rate Notes(b):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			1,701		1,792,853
Series 2019-SB61, Class A10F, 3.17%, 01/25/29			1,418		1,483,206
Federal National Mortgage Association ACES Variable Rate Notes, Series 2019-M1, Class A2, 3.67%, 09/25/28(b)			919		1,015,866
Government National Mortgage Association:
Series 2019-7, Class V, 3.00%, 05/16/35			172		181,433
Series 2019-53, Class V, 2.75%, 08/16/31			454		470,711
					4,944,069
Interest Only Collateralized Mortgage Obligations — 1.2%
Federal Home Loan Mortgage Corp., Series 4062, Class GI, 4.00%, 02/15/41			119		11,110
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 4901, Class CS, (LIBOR USD 1 Month + 6.10%), 4.07%, 07/25/49(a)			5,220		910,749

Security		Par (000)			Value
Interest Only Collateralized Mortgage Obligations (continued)
Federal National Mortgage Association:
Series 2014-68, Class YI, 4.50%, 11/25/44	USD		186		$	30,704
Series 2017-68, Class IE, 4.50%, 09/25/47			3,946			689,509
Series 2018-63, 3.00%, 09/25/48			829			115,595
Federal National Mortgage Association Variable Rate Notes(a):
Series 2015-66, Class AS, (LIBOR USD 1 Month + 6.25%), 4.23%, 09/25/45			7,089			1,242,382
Series 2016-60, Class SD, (LIBOR USD 1 Month + 6.10%), 4.08%, 09/25/46			1,100			193,401
Series 2016-78, Class CS, (LIBOR USD 1 Month + 6.10%), 4.08%, 05/25/39			1,374			244,892
Series 2016-81, Class CS, (LIBOR USD 1 Month + 6.10%), 4.08%, 11/25/46			1,951			330,708
Series 2017-70, Class SA, (LIBOR USD 1 Month + 6.15%), 4.13%, 09/25/47			1,479			303,432
Series 2019-25, Class SA, (LIBOR USD 1 Month + 6.05%), 4.03%, 06/25/49			5,077			1,020,266
Series 2019-35, Class SA, (LIBOR USD 1 Month + 6.10%), 4.08%, 07/25/49			2,867			498,113
Government National Mortgage Association:
Series 2014-113, Class NI, 5.00%, 07/20/44			232			44,110
Series 2017-139, Class IB, 4.50%, 09/20/47			750			111,355
Series 2017-144, Class DI, 4.50%, 09/20/47			577			83,173
Series 2018-89, Class CI, 5.00%, 12/20/47			720			143,828
						5,973,327
Interest Only Commercial Mortgage-Backed Securities — 2.2%
Federal National Mortgage Association ACES Variable Rate Notes, Series 2015-M1, Class X2,0.64%,09/25/24(b)			39,173			867,277
Government National Mortgage Association Variable Rate Notes:
Series 2016-22, 0.77%, 11/16/55(b)			21,529			1,110,260
Series 2016-45, 1.01%, 02/16/58(b)			15,795			1,095,410
Series 2016-92, 1.01%, 04/16/58(b)			5,302			373,037
Series 2016-110, 1.03%, 05/16/58(b)			4,983			370,525
Series 2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(a)			11,594			1,042,313
Series 2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(a)			24,860			1,807,664
Series 2016-151, 1.09%, 06/16/58(b)			16,791			1,293,998
Series 2017-53, 0.69%, 11/16/56(b)			20,385			1,122,449
Series 2017-61, 0.77%, 05/16/59(b)			4,759			324,333
Series 2017-64, 0.72%, 11/16/57(b)			7,128			447,760
Series 2017-72, 0.68%, 04/16/57(b)			11,880			708,524
						10,563,550
Mortgage-Backed Securities — 169.6%
Federal Home Loan Mortgage Corp.:
3.00%, 06/01/35 - 07/01/35			1,587			1,632,759
3.50%, 07/01/26 - 09/01/26			53			54,439
4.00%, 04/01/20 - 05/01/26			203			212,199
5.00%, 05/01/35 - 12/01/38			102			113,079
5.65%, 05/01/37 - 12/01/37			1,011			1,102,650
5.75%, 08/01/37 - 04/01/38			1,603			1,757,063
7.50%, 03/01/27			—	(c)		94
Federal National Mortgage Association:
3.13%, 09/01/27			940			1,004,701
3.16%, 03/01/27			1,447			1,539,104
3.40%, 04/01/41			165			166,150
3.50%, 11/01/46			1,917			1,987,748
4.45%, 03/01/36 - 06/01/36			798			826,192
4.94%, 01/01/35 - 05/01/35			185			189,047
5.00%, 04/01/36			102			105,276

S C H E D U L E S   O F   I N V E S T M E N T S 51

Schedule of Investments  (continued) September 30, 2019 BlackRock GNMA Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Mortgage-Backed Securities (continued)
5.20%, 08/01/34 - 09/01/34	USD		282	$	289,963
5.25%, 08/01/37 - 09/01/37			1,008		1,075,303
5.54%, 01/01/35			75		77,674
5.75%, 04/01/37			522		561,387
5.80%, 07/01/34			48		49,265
5.94%, 09/01/34			77		79,836
6.50%, 09/01/28 - 02/01/31			1,625		1,802,697
Government National Mortgage Association:
2.50%, 10/15/49(d)			9,380		9,466,986
3.00%, 05/15/42 - 09/20/46			18,372		18,972,016
3.00%, 10/15/49 - 11/15/49(d)			130,387		133,712,620
3.50%, 04/15/41 - 08/20/49			174,516		183,782,986
3.50%, 10/15/49(d)			46,239		47,901,617
4.00%, 10/20/41 - 12/20/47			53,851		57,031,584
4.00%, 10/15/49 - 11/15/49(d)			81,180		84,403,984
4.50%, 12/15/34 - 09/20/44			21,800		23,488,925
4.50%, 10/15/49 - 11/15/49(d)			107,577		112,352,584
5.00%, 09/15/28 - 09/20/48			33,613		36,571,847
5.00%, 10/15/49 - 11/15/49(d)			26,200		27,607,738
5.30%, 12/15/36 - 04/15/37			329		353,848
5.50%, 03/15/32 - 12/15/34			8,732		9,834,706
5.64%, 02/15/37 - 06/15/37			2,257		2,496,331
5.65%, 05/20/37 - 02/20/38			1,161		1,249,394
5.75%, 08/20/37 - 04/20/38			608		650,667
5.80%, 11/15/36 - 03/15/37			2,106		2,318,595
6.00%, 03/20/28 - 01/15/39			11,063		12,535,796
6.50%, 09/20/27 - 10/20/40			4,459		5,007,117
7.00%, 03/20/24 - 05/20/27			19		19,875
7.50%, 04/20/23 - 10/20/25			3		2,796
8.00%, 05/15/21 - 05/15/30			55		56,921
8.50%, 03/15/20 - 02/15/25			20		20,223
9.00%, 02/15/20 - 10/15/21			4		4,214
9.50%, 09/15/20 - 09/15/22			4		3,723
Uniform Mortgage-Backed Securities:
2.50%, 10/25/34(d)			154		155,308
3.00%, 07/01/35 - 06/01/43			22,820		23,502,195
3.00%, 10/25/49(d)			8,737		8,868,055
3.50%, 10/25/34(d)			1,796		1,857,457
3.50%, 03/01/43 - 08/01/43			2,148		2,250,049
4.00%, 07/01/43			3,674		3,923,523
5.00%, 01/01/21 - 07/01/35			1,748		1,929,482
5.25%, 07/01/37 - 08/01/37			628		676,080
5.50%, 12/01/32 - 04/01/35			144		160,756
6.50%, 08/01/35			817		927,240
					828,723,864
Total U.S. Government Sponsored Agency Securities — 184.1% (Cost: $889,851,459)					899,605,878
U.S. Treasury Obligations — 1.0%
U.S. Treasury Inflation Linked Notes, 0.50%, 04/15/24			4,761		4,817,947
Total U.S. Treasury Obligations — 1.0% (Cost: $4,773,529)					4,817,947
Total Long-Term Investments — 185.5% (Cost: $896,459,061)					906,354,517

Security			Shares		Value
Short-Term Securities — 2.9%
Money Market Funds — 0.6%
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.87%(e)*				2,823,418	$	2,823,418
Total Money Market Funds — 0.6% (Cost: $2,823,418)						2,823,418
	Par (000)
U.S. Treasury Obligations — 2.3%
U.S. Treasury Bills(f):
1.97%, 10/08/19				4,564		4,562,447
1.85%, 10/15/19				6,707		6,702,579
Total U.S. Treasury Obligations — 2.3% (Cost: $11,264,431)						11,265,026
Total Short-Term Securities — 2.9% (Cost: $14,087,849)						14,088,444
Total Options Purchased — 0.0% (Cost: $182,379)						14,494
Total Investments Before Options Written and TBA Sale Commitments — 188.4% (Cost: $910,729,289)						920,457,455
Total Options Written — (0.1)% (Premium Received — $377,896)						(399,529	)
TBA Sale Commitments — (44.2)%(d)
Mortgage-Backed Securities — (44.2)%
Government National Mortgage Association:
3.00%, 10/15/49		USD		26,502		(27,194,572	)
3.50%, 10/15/49 - 12/15/49				61,495		(63,698,877	)
4.00%, 10/15/49				46,175		(48,019,294	)
4.50%, 10/15/49				39,454		(41,228,874	)
5.00%, 10/15/49				13,100		(13,811,289	)
Uniform Mortgage-Backed Securities:
3.00%, 10/25/49 - 11/25/49				17,721		(17,981,350	)
3.50%, 10/25/49				364		(373,356	)
4.00%, 10/25/49				3,625		(3,761,362	)
Total TBA Sale Commitments — (44.2)% (Proceeds: $215,882,759)						(216,068,974	)
Total Investments Net of Options Written and TBA Sale Commitments — 144.1% (Cost: $694,468,634)						703,988,952
Liabilities in Excess of Other Assets — (44.1)%						(215,285,383	)
Net Assets — 100.0%					$	488,703,569

^(a)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(b)  Variable rate security. Rate shown is the rate in effect as of period end.

^(c)  Amount is less than 500.

^(d)  Represents or includes a TBA transaction.

^(e)  Annualized 7-day yield as of period end.

^(f)  Rates are discount rates or a range of discount rates as of period end.

52 2 0 1 9   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  (continued) September 30, 2019 BlackRock GNMA Portfolio

* During the year ended September 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 09/30/18		Net Activity		Shares Held at 09/30/19		Value at           09/30/19		Income		Net     Realized       Gain (Loss) (a)		Change in Unrealized Appreciation   (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		3,163,813		(340,395)		2,823,418	$	2,823,418	$	74,427	$	—	$	—

^(a)  Includes net capital gain distributions, if applicable.

S C H E D U L E S   O F   I N V E S T M E N T S 53

Schedule of Investments  (continued) September 30, 2019 BlackRock GNMA Portfolio

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
90-day Eurodollar		35		12/16/19	$	8,579	$	(361)
U.S. Treasury 2 Year Note		40		12/31/19		8,620		(23,176)
90-day Eurodollar		105		03/16/20		25,812		24,868
								1,331
Short Contracts
U.S. Treasury 10 Year Note		282		12/19/19		36,748		(187,010)
U.S. Treasury 10 Year Ultra Note		15		12/19/19		2,136		8,145
U.S. Treasury Long Bond		55		12/19/19		8,927		127,926
U.S. Treasury Ultra Bond		6		12/19/19		1,151		14,038
U.S. Treasury 5 Year Note		87		12/31/19		10,366		77,434
90-day Eurodollar		20		06/15/20		4,922		(2,804)
90-day Eurodollar		10		09/14/20		2,463		(2,126)
90-day Eurodollar		10		12/14/20		2,463		(2,176)
90-day Eurodollar		10		03/15/21		2,465		(6,676)
90-day Eurodollar		10		06/14/21		2,466		(1,758)
								24,993
							$	26,324

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Counterparty

Description

Rate

Frequency

Rate

Frequency

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Put

2-Year Interest Rate Swap

2.00%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

01/22/20

2.00

%

USD

38,500

$

13,800

5-Year Interest Rate Swap

2.72%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

02/03/20

2.72

%

USD

5,500

174

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

6,700

260

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

6,700

260

$

14,494

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
90-day Eurodollar December 2019 Futures		109		12/16/19	USD	98.25	USD	27,250	$	(12,263)
90-day Eurodollar March 2020 Futures		186		03/16/20	USD	98.00	USD	46,500		(169,725)
									$	(181,988)

OTC Interest Rate Swaptions Written

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.62%

Semi-Annual

Bank of America NA

11/06/19

1.62

%

USD

5,100

$

(60,732)

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.22%

Semi-Annual

Bank of America NA

11/14/19

1.22

%

USD

6,800

(12,954)

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.18%

Semi-Annual

Barclays Bank plc

12/04/19

1.18

%

USD

7,100

(18,678)

54 2 0 1 9   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  (continued) September 30, 2019 BlackRock GNMA Portfolio

OTC Interest Rate Swaptions Written (continued)

Description

Paid by the Fund

Received by the Fund

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.62%

Semi-Annual

Bank of America NA

12/11/19

1.62

%

USD

4,900

$

(74,073)

(166,437)

Put

10-Year Interest Rate Swap

1.62%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

12/11/19

1.62

%

USD

4,900

(51,104)

$

(217,541)

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3.07%	Semi-Annual	3 month LIBOR	Quarterly		10/11/20		USD	16,350	$	(358,306	)	$	—	$	(358,306)
3.05%	Semi-Annual	3 month LIBOR	Quarterly		10/15/20		USD	16,350		(354,983	)		130		(355,113)
3.11%	Semi-Annual	3 month LIBOR	Quarterly		10/23/20		USD	16,350		(373,272	)		—		(373,272)
3.06%	Semi-Annual	3 month LIBOR	Quarterly		10/25/20		USD	16,350		(360,594	)		—		(360,594)
2.66%	Semi-Annual	3 month LIBOR	Quarterly		02/06/23		USD	12,000		(443,280	)		—		(443,280)
2.87%	Semi-Annual	3 month LIBOR	Quarterly		03/23/23		USD	9,600		(432,811	)		—		(432,811)
3 month LIBOR	Quarterly	2.61%	Semi-Annual		02/07/24		USD	5,400		251,535			—		251,535
2.71%	Semi-Annual	3 month LIBOR	Quarterly		03/18/24		USD	13,300		(688,082	)		—		(688,082)
3 month LIBOR	Quarterly	3.13%	Semi-Annual		05/22/28		USD	1,750		240,608			—		240,608
2.85%	Semi-Annual	3 month LIBOR	Quarterly		12/21/28		USD	2,000		(237,634	)		—		(237,634)
2.64%	Semi-Annual	3 month LIBOR	Quarterly		03/14/29		USD	2,700		(257,622	)		—		(257,622)
3 month LIBOR	Quarterly	2.52%	Semi-Annual		04/08/29		USD	4,000		365,713			—		365,713
3 month LIBOR	Quarterly	1.45%	Semi-Annual		08/19/29		USD	2,100		(27,159	)		—		(27,159)
2.03%	Semi-Annual	3 month LIBOR	Quarterly		09/09/29		USD	8,200		(344,863	)		—		(344,863)
3 month LIBOR	Quarterly	1.47%	Semi-Annual		09/09/29		USD	1,800		(18,585	)		—		(18,585)
1.59%	Semi-Annual	3 month LIBOR	Quarterly		09/12/29		USD	1,400		(1,138	)		—		(1,138)
									$	(3,040,473	)	$	130	$	(3,040,603)

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
3 month LIBOR	London Interbank Offered Rate	2.09%

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps and Options Written

	Swap       Premiums Paid		Swap       Premiums Received		Unrealized       Appreciation		Unrealized       Depreciation		Value
Centrally Cleared Swaps(a)	$	130	$	—	$	857,856	$	(3,898,459)	$	—
Options Written		N/A		N/A		93,663		(115,296)		(399,529)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

S C H E D U L E S   O F   I N V E S T M E N T S 55

Schedule of Investments  (continued) September 30, 2019 BlackRock GNMA Portfolio

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit       Contracts		Equity       Contracts		Foreign Currency Exchange Contracts		Interest Rate       Contracts		Other       Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	252,411	$	—	$	252,411
Options purchased
Investments at value — unaffiliated(b)		—		—		—		—		14,494		—		14,494
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		857,856		—		857,856
	$	—	$	—	$	—	$	—	$	1,124,761	$	—	$	1,124,761
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		226,087		—		226,087
Options written
Options written at value		—		—		—		—		399,529		—		399,529
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		3,898,459		—		3,898,459
	$	—	$	—	$	—	$	—	$	4,524,075	$	—	$	4,524,075

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b)  Includes options purchased at value as reported in the Schedule of Investments.

For the year ended September 30, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit       Contracts		Equity       Contracts		Foreign Currency Exchange Contracts		Interest Rate           Contracts		Other       Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	(7,814,818)	$	—	$	(7,814,818)
Options purchased(a)		—		—		—		—		31,735		—		31,735
Options written		—		—		—		—		471,928		—		471,928
Swaps		—		—		—		—		(223,159)		—		(223,159)
	$	—	$	—	$	—	$	—	$	(7,534,314)	$	—	$	(7,534,314)
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—		(679,625)		—		(679,625)
Options purchased(b)		—		—		—		—		(156,461)		—		(156,461)
Options written		—		—		—		—		(132,665)		—		(132,665)
Swaps		—		—		—		—		(3,327,207)		—		(3,327,207)
	$	—	$	—	$	—	$	—	$	(4,295,958)	$	—	$	(4,295,958)

^(a)  Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)  Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

56 2 0 1 9   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  (continued) September 30, 2019 BlackRock GNMA Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	35,348,984
Average notional value of contracts — short		111,724,169
Options:
Average value of option contracts purchased		—	(a)
Average value of option contracts written		110,485
Average notional value of swaption contracts purchased		26,250,000
Average notional value of swaption contracts written		53,500,000
Interest rate swaps:
Average notional value — pays fixed rate		114,475,000
Average notional value — receives fixed rate		14,875,000

^(a)  Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period.

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	30,173	$	2,898
Options(a)		14,494		399,529
Swaps — Centrally cleared		4,119		—
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	48,786	$	402,427
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(34,292)		(184,886)
Total derivative assets and liabilities subject to an MNA	$	14,494	$	217,541

^(a)  Includes options purchased at value which is included in Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Schedule of Investments.

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

Counterparty	Derivative Assets Subject to an MNA by             Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Received		Cash           Collateral Received		Net Amount of Derivative Assets (b)
Barclays Bank plc	$	174	$	(174)	$	—	$	—	$	—
Citibank NA		520		—		—		—		520
JPMorgan Chase Bank NA		13,800		—		—		—		13,800
	$	14,494	$	(174)	$	—	$	—	$	14,320
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (c)
Bank of America NA	$	198,863	$	—	$	—	$	—	$	198,863
Barclays Bank plc		18,678		(174)		—		(10,000)		8,504
	$	217,541	$	(174)	$	—	$	(10,000)	$	207,367

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

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount represents the net amount payable due to the counterparty in the event of default.

S C H E D U L E S   O F   I N V E S T M E N T S 57

Schedule of Investments  (continued) September 30, 2019 BlackRock GNMA Portfolio

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments(a)	$	—	$	906,354,517	$	—	$	906,354,517
Short-Term Securities:
Money Market Funds		2,823,418		—		—		2,823,418
U.S. Treasury Obligations		—		11,265,026		—		11,265,026
Options Purchased:
Interest rate contracts		—		14,494		—		14,494
Liabilities:
Investments:
TBA Sale Commitments		—		(216,068,974)		—		(216,068,974)
	$	2,823,418	$	701,565,063	$	—	$	704,388,481
Derivative Financial Instruments(b)
Assets:
Interest rate contracts	$	252,411	$	857,856	$	—	$	1,110,267
Liabilities:
Interest rate contracts		(408,075)		(4,116,000)		—		(4,524,075)
	$	(155,664)	$	(3,258,144)	$	—	$	(3,413,808)

^(a)  See above Schedule of Investments for values in each security type. Investments categorized as Level 2 are included in security type.

^(b) Derivative financial instruments are swaps, futures contracts and options written. Swaps and futures contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

See notes to financial statements.

58 2 0 1 9   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 September 30, 2019 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 1.1%(a)
Dryden XXVIII Senior Loan Fund, Series 2013-28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 3.36%, 08/15/30(b)	USD		5,800	$	5,801,807
LMREC, Inc., Series 2016-CRE2, Class A, (LIBOR USD 1 Month + 1.70%), 3.74%, 11/24/31(b)			291		292,202
Progress Residential Trust, Series 2017-SFR1, Class A, 2.77%, 08/17/34			976		979,053
Total Asset-Backed Securities — 1.1% (Cost: $7,067,072)					7,073,062
Foreign Agency Obligations — 0.1%
Mexico — 0.1%
Petroleos Mexicanos:
6.38%, 02/04/21			35		36,531
(LIBOR USD 3 Month + 3.65%), 5.79%, 03/11/22(b)			23		23,917
6.88%, 08/04/26			54		58,050
6.50%, 03/13/27			31		32,204
5.35%, 02/12/28			72		68,895
7.69%, 01/23/50(a)			212		220,496
					440,093
Total Foreign Agency Obligations — 0.1% (Cost: $430,592)					440,093
Foreign Government Obligations — 0.9%
Colombia — 0.1%
Republic of Colombia:
10.00%, 07/24/24	COP		1,261,800		436,456
6.25%, 11/26/25			923,400		276,280
					712,736
France — 0.3%
Republic of France, 1.75%, 05/25/66(a)	EUR		1,140		1,737,316
Indonesia — 0.1%
Republic of Indonesia:
8.25%, 05/15/29	IDR		3,096,000		232,098
6.63%, 05/15/33			552,000		35,232
8.38%, 03/15/34			2,433,000		180,568
7.50%, 06/15/35			706,000		48,847
8.38%, 04/15/39			4,136,000		305,502
					802,247
Mexico — 0.3%
United Mexican States:
6.50%, 06/09/22	MXN		131		659,827
8.00%, 12/07/23			41		216,132
8.00%, 09/05/24			32		172,008
10.00%, 12/05/24			97		560,061
					1,608,028
Russia — 0.1%
Russian Federation, 8.50%, 09/17/31	RUB		43,503		750,032
South Africa — 0.0%
Republic of South Africa, 5.75%, 09/30/49	USD		200		199,350
Total Foreign Government Obligations — 0.9% (Cost: $5,839,592)					5,809,709

Security		Par (000)		Value
Non-Agency Mortgage-Backed Securities — 3.9%
Collateralized Mortgage Obligations — 0.6%
Seasoned Credit Risk Transfer Trust:
Series 2018-2, Class MA, 3.50%, 11/25/57	USD		1,162	$	1,210,615
Series 2018-3, Class MA, 3.50%, 08/25/57			1,613		1,681,397
Series 2019-2, Class MA, 3.50%, 08/25/58			899		939,930
					3,831,942
Commercial Mortgage-Backed Securities — 2.8%
AREIT Trust, Series 2018-CRE1, Class A, 2.88%, 02/14/35(a)(c)			87		86,911
Commercial Mortgage Trust, Series 2017-PANW, Class A, 3.24%, 10/10/29(a)			4,050		4,219,269
CSAIL Commercial Mortgage Trust, Series 2019-C17, Class C, 3.93%, 09/15/52			929		965,737
Hudson Yards Mortgage Trust, Series 2019-30HY, Class D, 3.56%, 07/10/39(a)(c)			526		547,592
JPMCC Commercial Mortgage Securities Trust, Series 2019-COR5, Class A4, 3.39%, 06/13/52			852		915,631
Morgan Stanley Capital I Trust:
Series 2018-SUN, Class A, 2.93%, 07/15/35(a)(c)			1,480		1,478,135
Series 2019-H6, Class A4, 3.42%, 06/15/52			1,407		1,512,587
Series 2019-H7, Class A4, 3.26%, 07/15/52			1,757		1,866,752
One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 09/13/49(a)			2,673		2,686,446
RAIT Trust, Series 2017-FL7, Class A, 2.98%, 06/15/37(a)(c)			213		212,070
UBS Commercial Mortgage Trust, Series 2019-C17, Class A4, 2.92%, 09/15/52			2,821		2,905,624
					17,396,754
Interest Only Commercial Mortgage-Backed Securities — 0.5%(c)
Core Industrial Trust(a):
Series 2015-TEXW, Class XA, 0.90%, 02/10/34			28,981		429,984
Series 2015-WEST, Class XA, 1.08%, 02/10/37			14,427		654,090
CSAIL Commercial Mortgage Trust:
Series 2018-C14, Class XA, 0.73%, 11/15/51			3,502		147,677
Series 2019-C16, Class XA, 1.73%, 06/15/52			10,316		1,265,155
UBS Commercial Mortgage Trust, Series 2019-C17, Class XA, 1.00%, 09/15/52			7,794		901,283
					3,398,189
Total Non-Agency Mortgage-Backed Securities — 3.9% (Cost: $24,278,910)					24,626,885
U.S. Government Sponsored Agency Securities — 70.7%
Agency Obligations — 0.8%
Federal Home Loan Bank, 4.00%, 04/10/28			4,100		4,795,164
Federal National Mortgage Association Variable Rate Notes, Series 1996-W1, Class AL, 7.25%, 03/25/26(d)			5		5,401
					4,800,565
Collateralized Mortgage Obligations — 3.3%
Federal Home Loan Mortgage Corp., Series 4901, Class BF, (LIBOR USD 1 Month + 0.40%), 2.43%, 07/25/49(b)			2,531		2,529,906
Federal National Mortgage Association:
Series 2011-8, Class ZA, 4.00%, 02/25/41			2,700		2,873,355
Series 2014-27, Class VC, 4.00%, 05/25/31			3,236		3,450,688

S C H E D U L E S   O F   I N V E S T M E N T S 59

Schedule of Investments  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Collateralized Mortgage Obligations (continued)
Series 2019-39, Class LF, (LIBOR USD 1 Month + 0.45%), 2.47%, 08/25/49(b)	USD		2,776	$	2,770,332
Government National Mortgage Association:
Series 2016-123, Class LM, 3.00%, 09/20/46			500		530,210
Series 2019-21, Class FL, (LIBOR USD 1 Month + 0.45%), 2.49%, 02/20/49(b)			3,607		3,608,768
Series 2019-89, Class FH, (LIBOR USD 1 Month + 0.40%), 2.44%, 07/20/49(b)			3,629		3,625,339
Government National Mortgage Association Variable Rate Notes, Series 2014-107, Class WX, 6.82%, 07/20/39(d)			1,311		1,493,702
					20,882,300
Commercial Mortgage-Backed Securities — 1.0%
Federal Home Loan Mortgage Corp. Variable Rate Notes(d):
Series 2019-SB60, Class A10F, 3.31%, 01/25/29			2,271		2,392,923
Series 2019-SB61, Class A10F, 3.17%, 01/25/29			1,899		1,986,995
Federal National Mortgage Association ACES Variable Rate Notes, Series 2019-M1, Class A2, 3.67%, 09/25/28(d)			1,169		1,292,217
Government National Mortgage Association:
Series 2019-7, Class V, 3.00%, 05/16/35			234		246,668
Series 2019-53, Class V, 2.75%, 08/16/31			613		636,014
					6,554,817
Interest Only Commercial Mortgage-Backed Securities — 2.0%
Federal Home Loan Mortgage Corp. Variable Rate Notes, Series 2015-K718, Class X2A, 0.10%, 02/25/48(a)(d)			191,075		341,508
Federal National Mortgage Association ACES Variable Rate Notes, Series 2015-M1, Class X2, 0.64%, 09/25/24(d)			62,869		1,391,902
Government National Mortgage Association Variable Rate Notes:
Series 2005-9, 0.51%, 01/16/45(d)			2,939		32,136
Series 2005-50, 0.42%, 06/16/45(d)			1,699		12,648
Series 2006-30, 2.39%, 05/16/46(d)			1,137		65,489
Series 2016-22, 0.77%, 11/16/55(d)			25,163		1,297,667
Series 2016-45, 1.01%, 02/16/58(d)			19,986		1,386,087
Series 2016-92, 1.01%, 04/16/58(d)			6,878		483,924
Series 2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(b)			14,798		1,330,391
Series 2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(b)			31,161		2,265,794
Series 2016-151, 1.09%, 06/16/58(d)			9,871		760,716
Series 2017-30, 0.74%, 08/16/58(d)			6,990		411,223
Series 2017-44, 0.70%, 04/17/51(d)			7,109		395,158
Series 2017-53, 0.69%, 11/16/56(d)			19,620		1,080,291
Series 2017-61, 0.77%, 05/16/59(d)			4,822		328,627
Series 2017-64, 0.72%, 11/16/57(d)			8,299		521,331
Series 2017-72, 0.68%, 04/16/57(d)			12,557		748,921
					12,853,813
Mortgage-Backed Securities — 63.6%
Federal Home Loan Mortgage Corp.:
2.50%, 03/01/30 - 04/01/31			2,113		2,141,190
3.00%, 09/01/27 - 12/01/46			5,343		5,505,011
3.50%, 12/01/40 - 01/01/48			23,416		24,669,188
4.00%, 08/01/40 - 06/01/48			7,188		7,699,221
4.50%, 02/01/39 - 08/01/48			3,858		4,174,260
5.00%, 04/01/36 - 10/01/41			1,138		1,257,178
5.50%, 06/01/41			1,145		1,292,253

Security		Par (000)			Value
Mortgage-Backed Securities (continued)
Federal National Mortgage Association:
3.00%, 02/01/44	USD		659		$	678,352
3.13%, 09/01/27			1,195			1,276,807
3.16%, 03/01/27			1,841			1,957,908
3.50%, 11/01/46			2,248			2,330,462
4.00%, 01/01/41			100			106,576
Government National Mortgage Association:
3.00%, 02/15/45 - 12/20/46			15,911			16,407,031
3.00%, 10/15/49(e)			1,532			1,572,035
3.50%, 01/15/42 - 10/20/46			26,154			27,394,453
3.50%, 10/15/49(e)			3,737			3,871,555
4.00%, 04/20/39 - 01/15/48			5,302			5,605,333
4.00%, 10/15/49 - 11/15/49(e)			16,853			17,520,866
4.50%, 12/20/39 - 09/20/48			6,282			6,757,722
4.50%, 10/15/49 - 11/15/49(e)			22,645			23,646,652
5.00%, 12/15/38 - 07/20/41			2,707			3,000,828
5.00%, 10/15/49 - 11/15/49(e)			520			547,940
7.00%, 06/15/23 - 11/15/23			—	(f)		48
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32			1,271			1,260,861
2.50%, 04/01/30 - 02/01/33			7,063			7,155,217
2.50%, 10/25/34 - 10/25/49(e)			6,322			6,355,049
3.00%, 04/01/28 - 03/01/47			36,839			37,962,731
3.00%, 10/25/34 - 10/25/49(e)			21,360			21,698,942
3.50%, 11/01/28 - 01/01/48			34,168			35,954,969
3.50%, 10/25/49 - 11/25/49(e)			33,320			34,179,746
4.00%, 09/01/33 - 08/01/49			36,785			39,343,258
4.00%, 10/25/49 - 11/25/49(e)			30,457			31,613,184
4.50%, 02/01/25 - 07/01/48			8,480			9,166,542
4.50%, 10/25/49 - 11/25/49(e)			7,993			8,418,266
5.00%, 11/01/32 - 06/01/45			1,009			1,106,763
5.00%, 10/25/49(e)			2,268			2,429,063
5.50%, 02/01/35 - 04/01/41			3,497			3,933,997
6.00%, 05/01/33 - 06/01/41			3,154			3,621,378
6.50%, 05/01/40			695			800,823
						404,413,658
Total U.S. Government Sponsored Agency Securities — 70.7% (Cost: $444,788,956)						449,505,153
U.S. Treasury Obligations — 59.1%
U.S. Treasury Bonds:
4.25%, 05/15/39			1,760			2,424,125
4.50%, 08/15/39			1,760			2,503,119
4.38%, 11/15/39			1,760			2,468,881
3.13%, 02/15/43			6,770			8,074,547
2.88%, 05/15/43 - 11/15/46			13,280			15,294,746
3.63%, 08/15/43			6,770			8,731,449
3.75%, 11/15/43			6,770			8,904,930
3.00%, 02/15/48			6,510			7,729,353
2.25%, 08/15/49(g)			9,205			9,467,127
U.S. Treasury Inflation Linked Notes, 0.50%, 04/15/24(g)			26,399			26,714,898
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25			42,310			42,680,024
2.50%, 12/31/20			19,530			19,697,836
1.13%, 07/31/21(g)			29,290			28,998,244
1.75%, 07/31/21 - 07/31/24			65,705			66,043,938
1.50%, 01/31/22 - 08/15/26			44,920			44,699,364
2.13%, 12/31/22(g)			13,020			13,242,255
2.75%, 05/31/23(g)			13,020			13,561,144
2.13%, 07/31/24 - 05/15/25			27,340			28,077,099
2.25%, 08/15/27			13,020			13,611,495
2.88%, 08/15/28			3,910			4,299,167
3.13%, 11/15/28			3,910			4,389,586

60 2 0 1 9   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  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio (Percentages shown are based on Net Assets)

Security			Par (000)		Value
U.S. Treasury Obligations (continued)
1.63%, 08/15/29(g)		USD		3,920	$	3,901,931
Total U.S. Treasury Obligations — 59.1% (Cost: $362,509,109)						375,515,258
Total Long-Term Investments — 135.8% (Cost: $844,914,231)						862,970,160
Short-Term Securities — 1.1%
Commercial Paper — 0.8%
Macquarie Bank Ltd., 3.27%, 10/11/19(a)(h)				5,200		5,196,457
Total Commercial Paper — 0.8% (Cost: $5,195,407)						5,196,457
	Shares
Money Market Funds — 0.3%(i)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.87%*				1,676,500		1,676,500
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.77%				11,402		11,402
Total Money Market Funds — 0.3% (Cost: $1,687,902)						1,687,902
Total Short-Term Securities — 1.1% (Cost: $6,883,309)						6,884,359
Total Options Purchased — 0.0% (Cost: $363,693)						131,789
Total Investments Before Options Written and TBA Sale Commitments — 136.9% (Cost: $852,161,233)						869,986,308
Total Options Written — (0.1)% (Premium Received — $503,357)						(532,139	)

Security		Par (000)		Value
TBA Sale Commitments — (17.7)%(e)
Mortgage-Backed Securities — (17.7)%
Government National Mortgage Association:
3.00%, 10/15/49	USD		10,312	$	(10,581,707	)
3.50%, 10/15/49 - 12/15/49			10,102		(10,461,546	)
4.00%, 10/15/49			6,536		(6,797,057	)
4.50%, 10/15/49			8,744		(9,210,769	)
5.00%, 10/15/49			260		(274,117	)
Uniform Mortgage-Backed Securities:
2.50%, 10/25/34 - 11/25/34			13,036		(13,145,912	)
3.00%, 10/25/34 - 11/25/49			27,734		(28,148,292	)
3.50%, 10/25/34 - 10/25/49			14,155		(14,531,550	)
4.00%, 10/25/34 - 10/25/49			10,141		(10,525,459	)
4.50%, 10/25/34 - 10/25/49			3,014		(3,164,862	)
5.50%, 10/25/49			2,704		(2,926,974	)
6.00%, 10/25/49			2,510		(2,777,080	)
Total TBA Sale Commitments — (17.7)% (Proceeds: $112,428,787)					(112,545,325	)
Total Investments Net of Options Written and TBA Sale Commitments — 119.1% (Cost: $739,229,089)					756,908,844
Liabilities in Excess of Other Assets — (19.1)%					(121,383,728	)
Net Assets — 100.0%				$	635,525,116

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

^(b)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

^(c) Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

^(d)  Variable rate security. Rate shown is the rate in effect as of period end.

^(e)  Represents or includes a TBA transaction.

^(f)  Amount is less than $500.

^(g)  All or a portion of the security has been pledged as collateral in connection with outstanding reverse repurchase agreements.

^(h)  Rates are discount rates or a range of discount rates as of period end.

⁽ⁱ⁾  Annualized 7-day yield as of period end.

* During the year ended September 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 09/30/18	Net Activity	Shares Held at 09/30/19		Value at 09/30/19		Income		Net Realized Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class	6,255,598	(4,579,098)	1,676,500	$	1,676,500	$	90,449	$	—		$	—

^(a)  Includes net capital gain distributions, if applicable.

S C H E D U L E S   O F   I N V E S T M E N T S 61

Schedule of Investments  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

Reverse Repurchase Agreements

Counterparty

Interest Rate

Trade Date

Maturity Date

Face Value

Face Value Including         Accrued Interest

Type of Non-Cash Underlying Collateral

Remaining Contractual         Maturity of  the Agreements

Bank of America Securities, Inc.

2.50%

09/30/19

10/01/19

$

7,875,000

$

7,875,547

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

2.50

09/30/19

10/01/19

13,312,950

13,313,875

U.S. Treasury Obligations

Overnight

Bank of America Securities, Inc.

2.50

09/30/19

10/01/19

29,033,713

29,035,729

U.S. Treasury Obligations

Overnight

Deutsche Bank Securities, Inc.

1.85

09/30/19

10/01/19

26,793,375

26,794,752

U.S. Treasury Obligations

Overnight

Deutsche Bank Securities, Inc.

1.90

09/30/19

10/01/19

3,905,300

3,905,506

U.S. Treasury Obligations

Overnight

Deutsche Bank Securities, Inc.

2.10

09/30/19

10/01/19

9,435,125

9,435,675

U.S. Treasury Obligations

Overnight

$

90,355,463

$

90,361,084

62 2 0 1 9   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  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-BTP		15		12/06/19	$	2,384	$	10,432
90-day Eurodollar		75		12/16/19		18,383		(2,916)
U.S. Treasury 10 Year Note		333		12/19/19		43,394		179,938
U.S. Treasury 10 Year Ultra Note		46		12/19/19		6,551		21,460
U.S. Treasury Long Bond		16		12/19/19		2,597		(39,898)
U.S. Treasury Ultra Bond		11		12/19/19		2,111		(44,966)
90-day Eurodollar		167		03/16/20		41,053		40,957
								165,007
Short Contracts
Euro-Bund		11		12/06/19		2,089		(10,751)
Euro-Buxl		12		12/06/19		2,845		49,372
U.S. Treasury 2 Year Note		2		12/31/19		431		(3)
U.S. Treasury 5 Year Note		117		12/31/19		13,940		(47,466)
								(8,848)
							$	156,159

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
CAD	152,407	EUR	105,000	Deutsche Bank AG		10/01/19	$	593
BRL	4,292,608	EUR	936,000	BNP Paribas SA		10/02/19		12,938
BRL	458,678	USD	110,000	Citibank NA		10/02/19		393
USD	3,466,245	EUR	3,145,000	State Street Bank and Trust Co.		10/03/19		38,092
INR	3,246,300	USD	45,000	BNP Paribas SA		10/07/19		846
USD	55,000	KRW	65,546,267	UBS AG		10/10/19		319
USD	80,617	COP	277,322,100	Citibank NA		10/23/19		1,006
USD	227,366	COP	779,795,100	Credit Suisse International		10/23/19		3,510
USD	186,096	COP	641,469,600	JPMorgan Chase Bank NA		10/23/19		1,950
USD	330,724	COP	1,134,467,840	Natwest Markets plc		10/23/19		5,053
ZAR	2,412,494	USD	158,732	Citibank NA		10/23/19		87
TWD	3,099,540	USD	100,000	Morgan Stanley & Co. International plc		10/30/19		61
BRL	208,425	USD	50,000	Barclays Bank plc		11/04/19		40
BRL	1,887,422	USD	450,000	JPMorgan Chase Bank NA		11/04/19		3,142
USD	1,653,005	MXN	32,389,302	BNP Paribas SA		11/06/19		21,889
USD	230,000	MXN	4,539,959	Citibank NA		11/06/19		1,369
USD	210,000	RUB	13,577,705	Citibank NA		11/06/19		1,617
USD	2,191,930	EUR	1,690,000	Deutsche Bank AG		12/13/19		339,568
CAD	872,595	AUD	954,000	Citibank NA		12/18/19		14,005
CAD	1,326	USD	1,000	Citibank NA		12/18/19		2
CHF	130,295	EUR	119,000	JPMorgan Chase Bank NA		12/18/19		974
EUR	1,087,000	CAD	1,576,297	JPMorgan Chase Bank NA		12/18/19		638
NOK	5,380,000	SEK	5,733,084	Bank of America NA		12/18/19		6,558
USD	178,000	AUD	259,486	BNP Paribas SA		12/18/19		2,425
USD	60,000	CHF	59,283	BNP Paribas SA		12/18/19		184
USD	664,154	EUR	596,000	JPMorgan Chase Bank NA		12/18/19		10,582
USD	57,000	EUR	51,693	Natwest Markets plc		12/18/19		314
USD	178,000	GBP	143,349	JPMorgan Chase Bank NA		12/18/19		1,172
USD	950,000	JPY	102,102,200	BNP Paribas SA		12/18/19		211
USD	209,000	JPY	22,467,268	Citibank NA		12/18/19		2
USD	130,000	JPY	13,971,880	Royal Bank of Canada		12/18/19		29
USD	2,000	NOK	18,074	Bank of America NA		12/18/19		11
USD	531,912	NZD	835,000	BNP Paribas SA		12/18/19		8,099
USD	601,039	NZD	954,000	Citibank NA		12/18/19		2,576
USD	2,206,126	EUR	1,690,000	Deutsche Bank AG		02/25/20		343,556

S C H E D U L E S   O F   I N V E S T M E N T S 63

Schedule of Investments  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
JPY	225,690,000	USD	2,091,271	JPMorgan Chase Bank NA		03/16/20	$	20,879
USD	2,252,845	JPY	225,690,000	HSBC Bank plc		03/16/20		140,695
								985,385
CAD	1,569,169	EUR	1,087,000	JPMorgan Chase Bank NA		10/01/19		(363)
EUR	1,192,000	CAD	1,725,420	Deutsche Bank AG		10/01/19		(3,131)
BRL	288,945	USD	70,000	BNP Paribas SA		10/02/19		(458)
BRL	1,100,979	USD	270,000	Citibank NA		10/02/19		(5,020)
EUR	954,000	BRL	4,379,576	BNP Paribas SA		10/02/19		(14,250)
USD	450,000	BRL	1,883,835	JPMorgan Chase Bank NA		10/02/19		(3,395)
USD	45,000	INR	3,233,250	HSBC Bank plc		10/07/19		(662)
ARS	1,725,500	USD	35,000	JPMorgan Chase Bank NA		10/15/19		(7,936)
USD	15,000	ARS	1,035,000	BNP Paribas SA		10/15/19		(1,233)
USD	45,000	ARS	3,120,000	Goldman Sachs International		10/15/19		(3,935)
COP	272,880,000	USD	80,000	Barclays Bank plc		10/23/19		(1,665)
USD	156,060	ZAR	2,412,494	HSBC Bank plc		10/23/19		(2,759)
USD	100,000	TWD	3,125,000	BNP Paribas SA		10/30/19		(883)
IDR	3,410,400,000	USD	240,000	BNP Paribas SA		11/06/19		(419)
IDR	2,267,520,000	USD	160,000	Citibank NA		11/06/19		(707)
MXN	4,506,666	USD	230,000	BNP Paribas SA		11/06/19		(3,046)
RUB	17,337,830	USD	270,000	Goldman Sachs International		11/06/19		(3,909)
USD	438,118	IDR	6,301,007,548	Bank of America NA		11/06/19		(4,528)
USD	342,719	IDR	4,974,201,481	Citibank NA		11/06/19		(6,719)
USD	240,000	IDR	3,546,000,000	JPMorgan Chase Bank NA		11/06/19		(9,106)
USD	240,000	MXN	4,791,312	Citibank NA		11/06/19		(1,289)
USD	770,947	RUB	50,928,635	Morgan Stanley & Co. International plc		11/06/19		(10,676)
ARS	1,798,500	USD	35,000	HSBC Bank plc		11/13/19		(8,167)
EUR	1,690,000	USD	2,067,749	JPMorgan Chase Bank NA		12/13/19		(215,387)
AUD	954,000	CAD	868,297	Citibank NA		12/18/19		(10,757)
AUD	1,192,000	NZD	1,288,259	JPMorgan Chase Bank NA		12/18/19		(1,612)
AUD	51,704	USD	35,000	JPMorgan Chase Bank NA		12/18/19		(16)
BRL	3,629,787	USD	889,000	UBS AG		12/18/19		(19,537)
CHF	56,967	USD	58,000	JPMorgan Chase Bank NA		12/18/19		(520)
EUR	119,000	CHF	129,883	Citibank NA		12/18/19		(557)
EUR	358,000	USD	396,625	Bank of America NA		12/18/19		(4,043)
EUR	98,817	USD	110,000	BNP Paribas SA		12/18/19		(1,637)
EUR	238,500	USD	264,955	HSBC Bank plc		12/18/19		(3,417)
EUR	355,000	USD	393,449	JPMorgan Chase Bank NA		12/18/19		(4,157)
EUR	238,500	USD	264,798	Standard Chartered Bank		12/18/19		(3,259)
JPY	138,516,674	USD	1,289,000	Citibank NA		12/18/19		(471)
JPY	10,069,186	USD	94,000	UBS AG		12/18/19		(333)
NOK	1,595,740	USD	179,000	BNP Paribas SA		12/18/19		(3,378)
NZD	282,142	USD	179,000	BNP Paribas SA		12/18/19		(2,007)
NZD	835,000	USD	531,061	Deutsche Bank AG		12/18/19		(7,249)
NZD	954,000	USD	599,722	JPMorgan Chase Bank NA		12/18/19		(1,258)
SEK	5,768,339	NOK	5,380,000	JPMorgan Chase Bank NA		12/18/19		(2,958)
SEK	1,234,616	USD	128,000	BNP Paribas SA		12/18/19		(1,903)
SEK	474,460	USD	49,000	Natwest Markets plc		12/18/19		(541)
USD	889,000	BRL	3,722,216	JPMorgan Chase Bank NA		12/18/19		(2,603)
USD	179,000	CAD	237,158	BNP Paribas SA		12/18/19		(244)
USD	178,000	JPY	19,146,886	BNP Paribas SA		12/18/19		(111)
ZAR	11,037,000	JPY	79,810,256	BNP Paribas SA		12/18/19		(21,028)
ZAR	765,000	JPY	5,523,345	JPMorgan Chase Bank NA		12/18/19		(1,379)
EUR	1,690,000	USD	2,082,663	JPMorgan Chase Bank NA		02/25/20		(220,093)
								(624,711)
Net Unrealized Appreciation							$	360,674

64 2 0 1 9   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  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

OTC Currency Options Purchased

Description	Counterparty	Expiration Date			Exercise Price		Notional Amount (000)			Value
Call
EUR Currency	Morgan Stanley & Co. International plc		10/23/19	CHF		1.13		EUR	1,192	$	38
Put
USD Currency	BNP Paribas SA		12/17/19	JPY		106.00		USD	3,280		24,359
USD Currency	Royal Bank of Canada		12/17/19	JPY		106.00		USD	385		2,859
USD Currency	Deutsche Bank AG		12/20/19	JPY		106.00		USD	3,323		25,806
											53,024
										$	53,062

OTC Interest Rate Swaptions Purchased

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional         Amount (000)

Value

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.70%

Semi-Annual

Bank of America NA

03/17/20

1.70

%

USD

1,546

$

39,155

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.70%

Semi-Annual

Bank of America NA

03/17/20

1.70

%

USD

46

1,165

40,320

Put

2-Year Interest Rate Swap

2.00%

Semi-Annual

3 month LIBOR

Quarterly

JPMorgan Chase Bank NA

01/22/20

2.00

%

USD

51,200

18,352

5-Year Interest Rate Swap

2.72%

Semi-Annual

3 month LIBOR

Quarterly

Barclays Bank plc

02/03/20

2.72

%

USD

7,000

222

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

8,900

345

10-Year Interest Rate Swap

3.20%

Semi-Annual

3 month LIBOR

Quarterly

Citibank NA

02/20/20

3.20

%

USD

8,900

345

10-Year Interest Rate Swap

1.70%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

03/17/20

1.70

%

USD

1,546

18,590

10-Year Interest Rate Swap

1.70%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

03/17/20

1.70

%

USD

46

553

38,407

$

78,727

Exchange-Traded Options Written

Description	Number of Contracts		Expiration Date		Exercise Price			Notional         Amount (000)			Value
Call
90-day Eurodollar December 2019 Futures		149		12/16/19		USD	98.25		USD	37,250	$	(16,763)
90-day Eurodollar March 2020 Futures		249		03/16/20		USD	98.00		USD	62,250		(227,213)
											$	(243,976)

OTC Interest Rate Swaptions Written

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional         Amount (000)

Value

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.62%

Semi-Annual

Bank of America NA

11/06/19

1.62

%

USD

6,700

$

(79,784)

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.22%

Semi-Annual

Bank of America NA

11/14/19

1.22

%

USD

9,100

(17,336)

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.18%

Semi-Annual

Barclays Bank plc

12/04/19

1.18

%

USD

9,500

(24,992)

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.62%

Semi-Annual

Bank of America NA

12/11/19

1.62

%

USD

6,500

(98,260)

(220,372)

S C H E D U L E S   O F   I N V E S T M E N T S 65

Schedule of Investments  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

OTC Interest Rate Swaptions Written (continued)

Paid by the Fund

Received by the Fund

Description

Rate

Frequency

Rate

Frequency

Counterparty

Expiration Date

Exercise Rate

Notional         Amount (000)

Value

Put

10-Year Interest Rate Swap

1.62%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

12/11/19

1.62

%

USD

6,500

$

(67,791)

$

(288,163)

Centrally Cleared Inflation Swaps

Paid by the Fund		Received by the Fund
Reference	Frequency	Rate		Frequency	Termination Date		Notional Amount (000)			Value		Upfront Premium Paid         (Received)		Unrealized Appreciation   (Depreciation)
0.81%	At Termination		1 month HICPXT	At Termination		09/15/24		EUR	9,643	$	(7,430)	$	—	$	(7,430)
1 month HICPXT	At Termination		0.99%	At Termination		09/15/29		EUR	9,643		14,510		—		14,510
										$	7,080	$	—	$	7,080

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Effective Date			Termination Date		Notional Amount (000)			Value		Upfront Premium Paid     (Received)		Unrealized Appreciation   (Depreciation)
28 day MXIBTIIE	Monthly	8.21%	Monthly		N/A			10/07/20		MXN	15,001	$	8,500	$	—	$	8,500
1.37%	Semi-Annual	3 month LIBOR	Quarterly		N/A			11/30/20		USD	10,970		22,452		—		22,452
6.86%	Monthly	28 day MXlBTIIE	Monthly		07/24/20	(a)		07/23/21		MXN	2,886		(844)		—		(844)
6.90%	Monthly	28 day MXlBTIIE	Monthly		07/27/20	(a)		07/26/21		MXN	4,029		(1,256)		—		(1,256)
6.78%	Monthly	28 day MXlBTIIE	Monthly		08/07/20	(a)		08/06/21		MXN	12,748		(3,292)		—		(3,292)
6 month GBP LIBOR	Semi-Annual	0.75%	Semi- Annual		N/A			09/24/21		GBP	12,820		26,180		—		26,180
6 month GBP LIBOR	Semi-Annual	0.73%	Semi- Annual		N/A			09/26/21		GBP	12,770		19,484		—		19,484
7.23%	Monthly	28 day MXlBTIIE	Monthly		N/A			07/18/22		MXN	3,130		(2,751)		—		(2,751)
7.23%	Monthly	28 day MXlBTIIE	Monthly		N/A			07/19/22		MXN	1,565		(1,377)		—		(1,377)
7.22%	Monthly	28 day MXlBTIIE	Monthly		N/A			07/20/22		MXN	602		(524)		—		(524)
7.21%	Monthly	28 day MXlBTIIE	Monthly		N/A			07/25/22		MXN	843		(730)		—		(730)
7.20%	Monthly	28 day MXlBTIIE	Monthly		N/A			08/03/22		MXN	5,734		(4,818)		—		(4,818)
28 day MXIBTIIE	Monthly	7.00%	Monthly		N/A			08/11/22		MXN	7,262		4,260		—		4,260
7.11%	Monthly	28 day MXlBTIIE	Monthly		N/A			10/14/22		MXN	4,224		(3,369)		—		(3,369)
7.11%	Monthly	28 day MXlBTIIE	Monthly		N/A			10/14/22		MXN	3,205		(2,579)		—		(2,579)
2.50%	Semi-Annual	3 month LIBOR	Quarterly		N/A			01/29/23		USD	11,601		(364,678)		—		(364,678)
28 day MXIBTIIE	Monthly	8.39%	Monthly		N/A			01/18/24		MXN	7,223		26,015		—		26,015
28 day MXIBTIIE	Monthly	8.13%	Monthly		N/A			02/02/24		MXN	3,790		11,778		—		11,778
28 day MXIBTIIE	Monthly	8.14%	Monthly		N/A			02/05/24		MXN	2,724		8,535		—		8,535
3 month LIBOR	Quarterly	2.61%	Semi- Annual		N/A			02/07/24		USD	7,000		326,062		—		326,062
2.71%	Semi-Annual	3 month LIBOR	Quarterly		N/A			03/18/24		USD	17,400		(900,198)		—		(900,198)
28 day MXIBTIIE	Monthly	6.73%	Monthly		N/A			08/09/24		MXN	2,448		942		—		942
28 day MXIBTIIE	Monthly	6.67%	Monthly		N/A			08/12/24		MXN	5,385		1,415		—		1,415
28 day MXIBTIIE	Monthly	6.72%	Monthly		N/A			08/13/24		MXN	4,634		1,667		—		1,667
3 month LIBOR	Quarterly	2.13%	Semi- Annual		N/A			08/25/25		USD	130		4,553		—		4,553
3.07%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/31/25		USD	30,810		(2,763,744)		—		(2,763,744)
3.04%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/31/25		USD	18,200		(1,599,907)		—		(1,599,907)
2.85%	Semi-Annual	3 month LIBOR	Quarterly		N/A			12/21/28		USD	2,600		(308,925)		—		(308,925)
3 month LIBOR	Quarterly	1.45%	Semi- Annual		N/A			08/19/29		USD	2,800		(36,213)		—		(36,213)
3 month LIBOR	Quarterly	1.47%	Semi- Annual		N/A			09/09/29		USD	2,500		(25,811)		—		(25,811)

66 2 0 1 9   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  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

Centrally Cleared Interest Rate Swaps (continued)

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Effective Date			Termination Date		Notional Amount (000)			Value		Upfront Premium Paid     (Received)		Unrealized Appreciation (Depreciation)
2.03%	Semi-Annual	3 month LIBOR	Quarterly		N/A			09/09/29		USD	11,200	$	(471,033)	$	—	$	(471,033)
1.59%	Semi-Annual	3 month LIBOR	Quarterly		N/A			09/12/29		USD	1,700		(1,382)		—		(1,382)
1.61%	Semi-Annual	3 month LIBOR	Quarterly		10/01/19	(a)		10/01/29		USD	4,700		(12,541)		—		(12,541)
												$	(6,044,129)	$	—	$	(6,044,129)

^(a)  Forward Swap.

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency	Counterparty	Termination Date		Notional Amount (000)			Value		Upfront Premium Paid     (Received)		Unrealized Appreciation (Depreciation)
Republic of Colombia		1.00	%	Quarterly	Citibank NA		12/20/24		USD	350	$	(1,211)	$	(1,328)	$	117
Republic of Colombia		1.00	%	Quarterly	Morgan Stanley & Co. International plc		12/20/24		USD	180		(622)		(716)		94
Republic of South Africa		1.00	%	Quarterly	Goldman Sachs International		12/20/24		USD	376		16,588		15,170		1,418
United Mexican States		1.00	%	Quarterly	Citibank NA		12/20/24		USD	60		461		380		81
United Mexican States		1.00	%	Quarterly	Citibank NA		12/20/24		USD	130		998		824		174
United Mexican States		1.00	%	Quarterly	Citibank NA		12/20/24		USD	228		1,752		1,800		(48)
United Mexican States		1.00	%	Quarterly	Citibank NA		12/20/24		USD	101		776		797		(21)
											$	18,742	$	16,927	$	1,815

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Counterparty	Termination Date			Notional Amount (000)		Value		Upfront Premium Paid     (Received)		Unrealized Appreciation   (Depreciation)
1 day BZDIOVER	At Termination	6.35%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL		2,303	$	6,443	$	—	$	6,443
1 day BZDIOVER	At Termination	8.27%	At Termination	JPMorgan Chase Bank NA		01/02/23	BRL		1,367		28,501		—		28,501
6.31%	Monthly	28 day MXIBTIIE	Monthly	Deutsche Bank AG		08/11/25	MXN		7,502		5,337		—		5,337
										$	40,281	$	—	$	40,281

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate	0.02%
1 month HICPXT	Harmonized Index Of Consumer Prices Excluding Tobacco	0.19%
28 day MXIBTIIE	Mexico Interbank TIIE 28-Day	8.00%
3 month LIBOR	London Interbank Offered Rate	2.09%
6 month GBP LIBOR	London Interbank Offered Rate	0.83%

S C H E D U L E S   O F   I N V E S T M E N T S 67

Schedule of Investments  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps, OTC Swaps and Options Written

	Swap Premiums Paid		Swap Premiums Received		Unrealized Appreciation		Unrealized     Depreciation			Value
Centrally Cleared Swaps(a)	$	—	$	—	$	476,353	$	(6,513,402	)	$	—
OTC Swaps		18,971		(2,044)		42,165		(69	)		—
Options Written		N/A		N/A		125,497		(154,279	)		(532,139)

^(a) Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	302,159	$	—	$	302,159
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		985,385		—		—		985,385
Options purchased
Investments at value — unaffiliated(b)		—		—		—		53,062		78,727		—		131,789
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		—		—		—		461,843		14,510		476,353
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		20,855		—		—		40,281		—		61,136
	$	—	$	20,855	$	—	$	1,038,447	$	883,010	$	14,510	$	1,956,822
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		146,000		—		146,000
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		624,711		—		—		624,711
Options written
Options written at value		—		—		—		—		532,139		—		532,139
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		—		—		—		6,505,972		7,430		6,513,402
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		2,113		—		—		—		—		2,113
	$	—	$	2,113	$	—	$	624,711	$	7,184,111	$	7,430	$	7,818,365

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b)  Includes options purchased at value as reported in the Schedule of Investments.

For the year ended September 30, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	—	$	—	$	1,966,563	$	—	$	1,966,563
Forward foreign currency exchange contracts		—		—		—		28,922		—		—		28,922
Options purchased(a)		—		—		—		(105,923)		(110,414)		—		(216,337)
Options written		—		—		—		—		531,845		—		531,845
Swaps		—		(56,021)		—		2,016		(1,199,052)		(279,146)		(1,532,203)
	$	—	$	(56,021)	$	—	$	(74,985)	$	1,188,942	$	(279,146)	$	778,790

68 2 0 1 9   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  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—		611,644		—		611,644
Forward foreign currency exchange contracts		—		—		—		(315,892)		—		—		(315,892)
Options purchased(b)		—		—		—		12,797		(52,398)		—		(39,601)
Options written		—		—		—		—		(73,632)		—		(73,632)
Swaps		—		11,949		—		—		(6,632,160)		3,587		(6,616,624)
	$	—	$	11,949	$	—	$	(303,095)	$	(6,146,546)	$	3,587	$	(6,434,105)

^(a)  Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)  Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	160,257,668
Average notional value of contracts — short		43,987,555
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		28,758,484
Average amounts sold — in USD		19,742,870
Options:
Average value of option contracts purchased		41,841
Average value of option contracts written		148,196
Average notional value of swaption contracts purchased		53,596,500
Average notional value of swaption contracts written		106,175,000
Credit default swaps:
Average notional value — buy protection		1,819,432
Interest rate swaps:
Average notional value — pays fixed rate		174,010,763
Average notional value — receives fixed rate		72,419,132
Currency swaps:
Average notional value — pays fixed rate		11,045
Average notional value — receives fixed rate		10,919
Inflation swaps:
Average notional value — pays fixed rate		8,931,439
Average notional value — receives fixed rate		8,665,610

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	17,542	$	29,383
Forward foreign currency exchange contracts		985,385		624,711
Options(a)		131,789		532,139
Swaps — Centrally cleared		28,436		—
Swaps — OTC(b)		61,136		2,113
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	1,224,288	$	1,188,346
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(45,978)		(273,359)
Total derivative assets and liabilities subject to an MNA	$	1,178,310	$	914,987

^(a)  Includes options purchased at value which is included in Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Schedule of Investments.

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

S C H E D U L E S   O F   I N V E S T M E N T S 69

Schedule of Investments  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

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

Counterparty	Derivative Assets Subject to an MNA by             Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Received		Cash             Collateral Received		Net Amount of Derivative Assets (b)(c)
Bank of America NA	$	66,032	$	(66,032)	$	—	$	—	$	—
Barclays Bank plc		262		(262)		—		—		—
BNP Paribas SA		70,951		(50,597)		—		—		20,354
Citibank NA		25,920		(25,920)		—		—		—
Credit Suisse International		3,510		—		—		—		3,510
Deutsche Bank AG		714,860		(10,380)		—		—		704,480
Goldman Sachs International		16,588		(7,844)		—		—		8,744
HSBC Bank plc		140,695		(15,005)		—		—		125,690
JPMorgan Chase Bank NA		92,633		(92,633)		—		—		—
Morgan Stanley & Co. International plc		193		(193)		—		—		—
Natwest Markets plc		5,367		(541)		—		—		4,826
Royal Bank of Canada		2,888		—		—		—		2,888
State Street Bank and Trust Co.		38,092		—		—		—		38,092
UBS AG		319		(319)		—		—		—
	$	1,178,310	$	(269,726)	$	—	$	—	$	908,584
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Pledged		Cash Collateral Pledged		Net Amount of Derivative Liabilities (c)(d)
Bank of America NA	$	271,742	$	(66,032)	$	—	$	—	$	205,710
Barclays Bank plc		26,657		(262)		—		(10,000)		16,395
BNP Paribas SA		50,597		(50,597)		—		—		—
Citibank NA		26,917		(25,920)		—		—		997
Deutsche Bank AG		10,380		(10,380)		—		—		—
Goldman Sachs International		7,844		(7,844)		—		—		—
HSBC Bank plc		15,005		(15,005)		—		—		—
JPMorgan Chase Bank NA		470,783		(92,633)		—		—		378,150
Morgan Stanley & Co. International plc		11,392		(193)		—		—		11,199
Natwest Markets plc		541		(541)		—		—		—
Standard Chartered Bank		3,259		—		—		—		3,259
UBS AG		19,870		(319)		—		—		19,551
	$	914,987	$	(269,726)	$	—	$	(10,000)	$	635,261

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

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(d)  Net amount represents the net amount payable due to the counterparty in the event of default.

70 2 0 1 9   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  (continued) September 30, 2019 BlackRock U.S. Government Bond Portfolio

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments(a)	$	—	$	862,970,160	$	—	$	862,970,160
Short-Term Securities:
Commercial Paper		—		5,196,457		—		5,196,457
Money Market Funds		1,687,902		—		—		1,687,902
Options Purchased:
Foreign currency exchange contracts		—		53,062		—		53,062
Interest rate contracts		—		78,727		—		78,727
Liabilities:
Investments:
TBA Sale Commitments		—		(112,545,325)		—		(112,545,325)
	$	1,687,902	$	755,753,081	$	—	$	757,440,983
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—	$	1,884	$	—	$	1,884
Foreign currency exchange contracts		—		985,385		—		985,385
Interest rate contracts		302,159		502,124		—		804,283
Other contracts		—		14,510		—		14,510
Liabilities:
Credit contracts		—		(69)		—		(69)
Foreign currency exchange contracts		—		(624,711)		—		(624,711)
Interest rate contracts		(389,976)		(6,794,135)		—		(7,184,111)
Other contracts		—		(7,430)		—		(7,430)
	$	(87,817)	$	(5,922,442)	$	—	$	(6,010,259)

^(a)  See above Schedule of Investments for values in each security type. Investments categorized as Level 2 are included in security type.

^(b)  Derivative financial instruments are swaps, futures contracts, forward foreign currency exchange contracts and options written. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument and options written are shown at value.

The Fund may hold assets and/or liabilities in which the fair value approximates the carrying amount or face value, including accrued interest, for financial statement purposes. As of period end, Reverse Repurchase Agreements of $90,361,084 are categorized as Level 2 within the disclosure hierarchy.

See notes to financial statements.

S C H E D U L E S   O F   I N V E S T M E N T S 71

Statements of Assets and Liabilities  

September 30, 2019

	BlackRock Credit Strategies Income Fund		BlackRock GNMA Portfolio		BlackRock U.S. Government Bond Portfolio
ASSETS
Investments at value — unaffiliated(a)	$	995,401,243	$	917,634,037	$	868,309,808
Investments at value — affiliated(b)		178,150,090		2,823,418		1,676,500
Cash		—		3,789		80,246
Cash pledged:
Collateral — OTC derivatives		450,000		10,000		10,000
Futures contracts		1,427,078		917,310		916,650
Centrally cleared swaps		3,184,000		1,007,000		3,128,560
Foreign currency at value(c)		1,597,977		—		3,450,069
Receivables:
Investments sold		8,121,435		121,395,236		66,712,236
TBA sale commitments		—		215,882,759		112,428,787
Capital shares sold		5,423,676		3,931,304		2,803,157
Dividends — affiliated		182,623		6,466		5,471
Dividends — unaffiliated		3,061		14		—
Interest — unaffiliated		9,532,293		2,678,250		3,271,426
From the Manager		51,390		22,650		64,284
Variation margin on futures contracts		34,086		30,173		17,542
Variation margin on centrally cleared swaps		167,064		4,119		28,436
Swap premiums paid		36,001		—		18,971
Unrealized appreciation on:
Forward foreign currency exchange contracts		723,638		—		985,385
OTC swaps		19,880		—		42,165
Unfunded floating rate loan interests		1,691		—		—
Prepaid expenses		91,615		63,229		74,855
Total assets		1,204,598,841		1,266,409,754		1,064,024,548
LIABILITIES
Bank overdraft		35,241		—		—
Cash received:
Collateral — OTC derivatives		310,000		—		10,000
Collateral — TBA commitments		—		274,000		20,000
Options written at value(d)		338,247		399,529		532,139
TBA sale commitments at value(e)		—		216,068,974		112,545,325
Reverse repurchase agreements at value		—		—		90,361,084
Payables:
Investments purchased		64,504,458		556,788,543		221,492,347
Accounting services fees		85,067		19,226		28,518
Administration fees		37,335		17,093		22,142
Capital shares redeemed		2,809,264		3,382,842		1,429,650
Custodian fees		59,761		22,714		40,549
Income dividend distributions		515,094		282,854		586,173
Investment advisory fees		417,838		97,904		163,825
Trustees’ and Officer’s fees		1,334		3,438		2,911
Other affiliates		651		4,602		5,417
Printing fees		38,342		4,602		22,956
Professional fees		81,011		72,070		82,538
Registration fees		12,506		13,731		14,539
Service and distribution fees		47,866		60,601		116,042
Transfer agent fees		270,289		148,033		323,383
Other accrued expenses		115,718		42,531		43,687
Variation margin on futures contracts		34,486		2,898		29,383
Swap premiums received		161,831		—		2,044
Unrealized depreciation on:
Forward foreign currency exchange contracts		146,017		—		624,711
OTC swaps		40,288		—		69
Unfunded floating rate loan interests		1,217		—		—
Total liabilities		70,063,861		777,706,185		428,499,432
NET ASSETS	$	1,134,534,980	$	488,703,569	$	635,525,116

72 2 0 1 9    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

Statements of Assets and Liabilities  (continued)

September 30, 2019

	BlackRock Credit Strategies Income Fund		BlackRock GNMA Portfolio			BlackRock U.S. Government Bond Portfolio
NET ASSETS CONSIST OF
Paid-in capital	$	1,120,995,673	$	554,532,898		$	673,489,206
Accumulated earnings (loss)		13,539,307		(65,829,329	)		(37,964,090	)
NET ASSETS	$	1,134,534,980	$	488,703,569		$	635,525,116
(a) Investments at cost — unaffiliated	$	988,228,501	$	907,905,871		$	850,484,733
(b) Investments at cost — affiliated	$	177,877,935	$	2,823,418		$	1,676,500
(c)  Foreign currency at cost	$	1,598,416	$	—		$	3,487,164
(d) Premiums received	$	1,086,472	$	377,896		$	503,357
(e) Proceeds from TBA sale commitments	$	—	$	215,882,759		$	112,428,787

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 73

Statements of Assets and Liabilities  (continued)

September 30, 2019

	BlackRock Credit Strategies Income Fund		BlackRock GNMA Portfolio		BlackRock U.S. Government Bond Portfolio
NET ASSET VALUE
Institutional
Net assets	$	919,409,124	$	264,810,501	$	217,814,798
Share outstanding(f)		89,115,435		27,999,566		20,505,376
Net asset value	$	10.32	$	9.46	$	10.62
Service
Net assets	$	—	$	6,637,811	$	8,040,471
Share outstanding(f)		—		702,997		757,326
Net asset value	$	—	$	9.44	$	10.62
Investor A
Net assets	$	102,856,857	$	137,064,747	$	354,704,294
Share outstanding(f)		9,970,700		14,431,192		33,315,328
Net asset value	$	10.32	$	9.50	$	10.65
Investor C
Net assets	$	32,197,267	$	34,256,873	$	26,193,465
Share outstanding(f)		3,120,316		3,622,690		2,463,911
Net asset value	$	10.32	$	9.46	$	10.63
Investor C1
Net assets	$	—	$	—	$	10,007,169
Share outstanding(f)		—		—		941,480
Net asset value	$	—	$	—	$	10.63
Class K
Net assets	$	80,071,732	$	45,933,637	$	5,030,679
Share outstanding(f)		7,762,167		4,872,669		473,550
Net asset value	$	10.32	$	9.43	$	10.62
Class R
Net assets	$	—	$	—	$	13,734,240
Share outstanding(f)		—		—		1,290,135
Net asset value	$	—	$	—	$	10.65

^(f)  Unlimited number of shares authorized, $0.001 par value.

See notes to financial statements.

74 2 0 1 9    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

Statements of Operations   

Year Ended September 30, 2019

	BlackRock Credit Strategies Income Fund			BlackRock GNMA Portfolio			BlackRock U.S. Government Bond Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	2,568,276		$	74,427		$	90,449
Dividends — unaffiliated		943,711			896			2,337
Interest — unaffiliated		39,718,023			17,597,890			21,071,787
Foreign taxes withheld		(4,571	)		—			(12,968	)
Total investment income		43,225,439			17,673,213			21,151,605
EXPENSES
Investment advisory		4,100,322			1,553,134			2,368,114
Transfer agent — class specific		766,596			541,950			1,126,191
Service and distribution — class specific		509,998			680,063			1,391,895
Accounting services		342,652			74,128			107,991
Administration		340,733			194,144			255,388
Administration — class specific		164,269			91,353			121,432
Registration		148,102			103,422			131,327
Custodian		105,471			35,082			58,943
Professional		87,934			82,259			75,380
Board realignment and consolidation		38,034			49,383			67,830
Printing		26,790			23,419			30,458
Trustees and Officer		12,687			9,659			11,028
Offering		—			—			14,407
Miscellaneous		208,612			83,389			51,711
Total expenses excluding interest expense		6,852,200			3,521,385			5,812,095
Interest expense		—			2,409,457			3,075,432
Total expenses		6,852,200			5,930,842			8,887,527
Less:
Fees waived and/or reimbursed by the Manager		(701,745	)		(517,407	)		(763,681	)
Transfer agent fees waived and/or reimbursed — class specific		(407,797	)		(331,490	)		(804,100	)
Administration fees waived — class specific		(163,857	)		(91,353	)		(121,424	)
Total expenses after fees waived and/or reimbursed		5,578,801			4,990,592			7,198,322
Net investment income		37,646,638			12,682,621			13,953,283
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated	$	129,802		$	—		$	—
Investments — unaffiliated		(7,044,074	)		4,095,704			5,570,275
Forward foreign currency exchange contracts		5,995,265			—			28,922
Foreign currency transactions		185,607			—			181,225
Futures contracts		11,625,373			(7,814,818	)		1,966,563
Options written		1,787,387			471,928			531,845
Short sales — unaffiliated		78,051			—			—
Swaps		(1,551,128	)		(223,159	)		(1,532,203	)
		11,206,283			(3,470,345	)		6,746,627
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		165,040			—			—
Investments — unaffiliated		11,588,956			27,404,907			35,590,766
Forward foreign currency exchange contracts		(85,086	)		—			(315,892	)
Foreign currency translations		7,170			—			2,041
Futures contracts		(660,399	)		(679,625	)		611,644
Options written		621,534			(132,665	)		(73,632	)
Swaps		830,587			(3,327,207	)		(6,616,624	)
Unfunded floating rate loan interests		391			—			—
		12,468,193			23,265,410			29,198,303
Net realized and unrealized gain		23,674,476			19,795,065			35,944,930
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	61,321,114		$	32,477,686		$	49,898,213

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 75

Statements of Changes in Net Assets

	BlackRock Credit Strategies Income Fund						BlackRock GNMA Portfolio
	Year Ended September 30,						Year Ended September 30,
	2019			2018			2019			2018
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	37,646,638		$	20,943,910		$	12,682,621		$	12,845,340
Net realized gain (loss)		11,206,283			5,709,706			(3,470,345	)		(203,091)
Net change in unrealized appreciation (depreciation)		12,468,193			(13,936,497	)		23,265,410			(21,061,983)
Net increase (decrease) in net assets resulting from operations		61,321,114			12,717,119			32,477,686			(8,419,734)
DISTRIBUTIONS TO SHAREHOLDERS(a)(b)
From net investment income:
Institutional		(33,063,857	)		(16,112,100	)		(9,407,704	)		(10,078,634)
Service		—			—			(252,843	)		(279,131)
Investor A		(3,996,498	)		(3,885,278	)		(4,412,535	)		(4,674,749)
Investor C		(1,240,495	)		(986,678	)		(950,086	)		(1,369,949)
Class K		(2,349,783	)		(199,081	)		(1,314,642	)		(755,655)
From return of capital:
Institutional		—			—			(35,973	)		—
Service		—			—			(967	)		—
Investor A		—			—			(16,873	)		—
Investor C		—			—			(3,633	)		—
Class K		—			—			(5,027	)		—
Decrease in net assets resulting from distributions to shareholders		(40,650,633	)		(21,183,137	)		(16,400,283	)		(17,158,118)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		535,223,240			109,557,535			30,377,670			(116,492,897)
NET ASSETS(b)
Total increase (decrease) in net assets		555,893,721			101,091,517			46,455,073			(142,070,749)
Beginning of year		578,641,259			477,549,742			442,248,496			584,319,245
End of year	$	1,134,534,980		$	578,641,259		$	488,703,569		$	442,248,496

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

^(b)  Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information.

See notes to financial statements.

76 2 0 1 9    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

Statements of Changes in Net Assets  (continued)

	BlackRock U.S. Government Bond Portfolio
	Year Ended September 30,
	2019			2018
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	13,953,283		$	12,440,365
Net realized gain (loss)		6,746,627			(8,636,280)
Net change in unrealized appreciation (depreciation)		29,198,303			(16,066,202)
Net increase (decrease) in net assets resulting from operations		49,898,213			(12,262,117)
DISTRIBUTIONS TO SHAREHOLDERS(a)(b)
From net investment income:
Institutional		(5,086,218	)		(3,998,385)
Service		(64,915	)		(41,989)
Investor A		(8,976,963	)		(8,369,184)
Investor B1		—			(302)
Investor C		(549,706	)		(534,817)
Investor C1		(257,385	)		(307,943)
Class K		(74,873	)		(17,877)
Class R		(391,511	)		(389,299)
From return of capital:
Institutional		(19,062	)		—
Service		(243	)		—
Investor A		(33,644	)		—
Investor C		(2,060	)		—
Investor C1		(965	)		—
Class K		(281	)		—
Class R		(1,467	)		—
Decrease in net assets resulting from distributions to shareholders		(15,459,293	)		(13,659,796)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		7,461,750			(55,274,556)
NET ASSETS(b)
Total increase (decrease) in net assets		41,900,670			(81,196,469)
Beginning of year		593,624,446			674,820,915
End of year	$	635,525,116		$	593,624,446

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

^(b)  Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information.

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 77

Statement of Cash Flows

September 30, 2019

	BlackRock U.S. Government Bond Portfolio
CASH PROVIDED BY OPERATING ACTIVITIES
Net increase in net assets resulting from operations	$	49,898,213
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
Proceeds from sales of long-term investments and principal paydowns		5,738,088,661
Purchases of long-term investments		(5,692,649,086)
Net proceeds from sales of short-term securities		6,756,692
Amortization of premium and accretion of discount on investments		(1,055,160)
Premiums received from options written		1,822,872
Premiums paid on closing options written		(1,014,280)
Net realized (gain) loss on investments and options written		(6,102,120)
Net unrealized (appreciation) depreciation on investments, options written, forward foreign currency exchange contracts, foreign currency translations and swaps		(35,293,163)
(Increase) Decrease in Assets:
Receivables:
Dividends — affiliated		(221)
Interest — unaffiliated		16,216
From the Manager		142,818
Variation margin on futures contracts		90,645
Variation margin on centrally cleared swaps		(28,436)
Swap premiums paid		(7,608)
Prepaid expenses		(22,728)
Increase (Decrease) in Liabilities:
Cash received:
Collateral — OTC derivatives		(830,000)
Collateral — TBA commitments		20,000
Payables:
Accounting services fees		28,518
Administration fees		12,321
Board realignment and consolidation		(134,185)
Custodian fees		4,348
Investment advisory fees		40,044
Trustees’ and Officer’s fees		(2,140)
Other affiliates		4,068
Printing fees		22,956
Professional fees		(7,279)
Registration fees		14,539
Service and distribution fees		(11,092)
Transfer agent fees		100,825
Interest expense		(19,109)
Other accrued expenses		(71,876)
Variation margin on futures contracts		(46,180)
Variation margin on centrally cleared swaps		(16,800)
Swap premiums received		(228)
Net cash provided by operating activities		59,752,045
CASH (USED FOR) FINANCING ACTIVITIES
Cash dividends paid to shareholders		(2,834,932)
Payments on redemption of capital shares		(239,803,739)
Proceeds from issuance of capital shares		231,952,058
Net borrowing of reverse repurchase agreements		(44,180,561)
Net cash (used for) financing activities		(54,867,174)
CASH IMPACT FROM FOREIGN EXCHANGE FLUCTUATIONS
Cash impact from foreign exchange fluctuations		(39,623)
CASH AND FOREIGN CURRENCY
Net increase in restricted and unrestricted cash and foreign currency		4,845,248
Restricted and unrestricted cash and foreign currency at beginning of year		2,740,277
Restricted and unrestricted cash and foreign currency at end of year	$	7,585,525
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
Cash paid during the year for interest expense	$	3,056,323
NON-CASH FINANCING ACTIVITIES
Capital shares issued in reinvestment of dividends and distributions paid to shareholders	$	12,782,902

78 2 0 1 9    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

Statement of Cash Flows  (continued)

September 30, 2019

	Year Ended September 30, 2019		Year Ended September 30, 2018
RECONCILIATION OF RESTRICTED AND UNRESTRICTED CASH AND FOREIGN CURRENCY TO THE STATEMENT OF ASSETS AND LIABILITIES:
Cash	$	80,246	$	147,574
Cash pledged:
Collateral — OTC derivatives		10,000		—
Futures contracts		916,650		710,650
Centrally cleared swaps		3,128,560		291,560
Foreign currency at value		3,450,069		1,590,493
	$	7,585,525	$	2,740,277

See notes to financial statements.

F I N A N C I A L   S T A T E M E N T S 79

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund
	Institutional
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.13		$	10.31		$	10.14		$	9.99		$	10.31
Net investment income(a)		0.47			0.43			0.41			0.43			0.42
Net realized and unrealized gain (loss)		0.24			(0.18	)		0.20			0.16			(0.28)
Net increase from investment operations		0.71			0.25			0.61			0.59			0.14
Distributions(b)
From net investment income		(0.52	)		(0.43	)		(0.44	)		(0.44	)		(0.45)
From net realized gain		—			—			—			—			(0.01)
Total distributions		(0.52	)		(0.43	)		(0.44	)		(0.44	)		(0.46)
Net asset value, end of year	$	10.32		$	10.13		$	10.31		$	10.14		$	9.99
Total Return(c)
Based on net asset value		7.22%			2.52%			6.12%			6.09%			1.36%
Ratios to Average Net Assets(d)
Total expenses(e)		0.78%			0.83%			0.90%			0.80%			0.80%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.62%			0.63%			0.63%			0.68%			0.70%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.62%			0.63%			0.63%			0.68%			0.70%
Net investment income		4.64%			4.22%			4.03%			4.28%			4.13%
Supplemental Data
Net assets, end of year (000)	$	919,409		$	457,518		$	337,106		$	218,738		$	211,705
Portfolio turnover rate		77%			100%			126%			101%			65%
(a) Based on average shares outstanding.
(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Where applicable, assumes the reinvestment of distributions.
(d) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.01	%		0.02	%		0.01	%		0.01%
(e) Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			0.82%			0.90%			0.80%			N/A

See notes to financial statements.

80 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Investor A
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.13		$	10.30		$	10.13		$	9.99		$	10.31
Net investment income(a)		0.44			0.40			0.39			0.40			0.40
Net realized and unrealized gain (loss)		0.24			(0.16	)		0.19			0.16			(0.28)
Net increase from investment operations		0.68			0.24			0.58			0.56			0.12
Distributions(b)
From net investment income		(0.49	)		(0.41	)		(0.41	)		(0.42	)		(0.43)
From net realized gain		—			—			—			—			(0.01)
Total distributions		(0.49	)		(0.41	)		(0.41	)		(0.42	)		(0.44)
Net asset value, end of year	$	10.32		$	10.13		$	10.30		$	10.13		$	9.99
Total Return(c)
Based on net asset value		6.96%			2.36%			5.86%			5.72%			1.12%
Ratios to Average Net Assets(d)
Total expenses		1.04%			1.12%(e)			1.17%			1.10%			1.10%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.87%			0.88%			0.88%			0.93%			0.95%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.87%			0.88%			0.88%			0.93%			0.95%
Net investment income		4.40%			3.94%			3.81%			4.04%			3.90%
Supplemental Data
Net assets, end of year (000)	$	102,857		$	75,462		$	109,702		$	120,167		$	108,127
Portfolio turnover rate		77%			100%			126%			101%			65%
(a) Based on average shares outstanding.
(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.
(d) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.01	%		0.02	%		0.01	%		0.01%

^(e) Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended September 30, 2018, the expense ratio would have been 1.11%.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 81

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Investor C
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.13		$	10.31		$	10.14		$	9.99		$	10.31
Net investment income(a)		0.37			0.33			0.31			0.33			0.32
Net realized and unrealized gain (loss)		0.23			(0.18	)		0.19			0.16			(0.28)
Net increase from investment operations		0.60			0.15			0.50			0.49			0.04
Distributions(b)
From net investment income		(0.41	)		(0.33	)		(0.33	)		(0.34	)		(0.35)
From net realized gain		—			—			—			—			(0.01)
Total distributions		(0.41	)		(0.33	)		(0.33	)		(0.34	)		(0.36)
Net asset value, end of year	$	10.32		$	10.13		$	10.31		$	10.14		$	9.99
Total Return(c)
Based on net asset value		6.16%			1.50%			5.07%			5.04%			0.36%
Ratios to Average Net Assets(d)
Total expenses		1.79%			1.84%(e)			1.90%			1.82%			1.83%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.62%			1.63%			1.63%			1.68%			1.70%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.62%			1.63%			1.63%			1.68%			1.70%
Net investment income		3.66%			3.21%			3.06%			3.28%			3.15%
Supplemental Data
Net assets, end of year (000)	$	32,197		$	29,812		$	30,536		$	29,321		$	24,678
Portfolio turnover rate		77%			100%			126%			101%			65%
(a) Based on average shares outstanding.
(b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions.
(d) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.04	%		0.01	%		0.02	%		0.01	%		0.01%

^(e)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees for the year ended September 30, 2018, the expense ratio would have been 1.83%.

See notes to financial statements.

82 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Credit Strategies Income Fund (continued)
	Class K
		Year Ended September 30,								Period from
										08/01/16 (a)
		2019			2018			2017		to 09/30/16
Net asset value, beginning of period	$	10.13		$	10.31		$	10.14	$	10.08
Net investment income(b)		0.47			0.44			0.42		0.07
Net realized and unrealized gain (loss)		0.24			(0.18	)		0.19		0.06
Net increase from investment operations		0.71			0.26			0.61		0.13
Distributions from net investment income(c)		(0.52	)		(0.44	)		(0.44)		(0.07	)
Net asset value, end of period	$	10.32		$	10.13		$	10.31	$	10.14
Total Return(d)
Based on net asset value		7.27%			2.57%			6.17%		1.32%(e)
Ratios to Average Net Assets(f)
Total expenses		0.69%			0.74%(g)			0.84%		0.76%(h)
Total expenses after fees waived and/or reimbursed and paid indirectly		0.57%			0.57%			0.58%		0.57%(h)
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.57%			0.57%			0.58%		0.57%(h)
Net investment income		4.65%			4.37%			4.11%		4.36%(h)
Supplemental Data
Net assets, end of period (000)	$	80,072		$	15,849		$	206	$	201
Portfolio turnover rate		77%			100%			126%		101%(i)

^(a)  Commencement of operations.

^(b)  Based on average shares outstanding.

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

^(d)  Where applicable, assumes the reinvestment of distributions.

^(e)  Aggregate total return.

^(f)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:

	Year Ended September 30,						Period from
							08/01/16 (a)
	2019		2018		2017		to 09/30/16
Investments in underlying funds		0.04%		0.01%		0.02%	0.01%

^(g)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

^(h)  Annualized.

⁽ⁱ⁾  Portfolio turnover rate is representative of the Fund for the entire year.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 83

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio
	Institutional
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.13		$	9.59		$	9.89		$	9.83		$	9.83
Net investment income(a)		0.27			0.25			0.19			0.19			0.15
Net realized and unrealized gain (loss)		0.41			(0.38	)		(0.19	)		0.15			0.09
Net increase (decrease) from investment operations		0.68			(0.13	)		—			0.34			0.24
Distributions(b)
From net investment income		(0.35	)		(0.33	)		(0.30	)		(0.28	)		(0.24	)
From return of capital		(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.35	)		(0.33	)		(0.30	)		(0.28	)		(0.24	)
Net asset value, end of year	$	9.46		$	9.13		$	9.59		$	9.89		$	9.83
Total Return(d)
Based on net asset value		7.55%			(1.36)%			0.01%			3.54%			2.45%
Ratios to Average Net Assets(e)
Total expenses		1.14	%		1.06%			0.74%			0.66%			0.82%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.95	%		0.84%			0.52%			0.57%			0.55%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.42	%		0.42%			0.43%			0.55%			0.55%
Net investment income		2.92	%		2.69%			1.93%			1.88%			1.49%
Supplemental Data
Net assets, end of year (000)	$	264,811		$	249,030		$	316,891		$	457,730		$	420,167
Portfolio turnover rate (f)		1,482%			1,450%			1,198%			1,139%			1,164%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, assumes the reinvestment of distributions. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%
(f)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		947	%		823	%		423	%		502%			429%

See notes to financial statements.

84 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Service
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.12		$	9.57		$	9.87		$	9.82		$	9.82
Net investment income(a)		0.25			0.22			0.16			0.16			0.11
Net realized and unrealized gain (loss)		0.39			(0.36	)		(0.19	)		0.14			0.09
Net increase (decrease) from investment operations		0.64			(0.14	)		(0.03	)		0.30			0.20
Distributions(b)
From net investment income		(0.32	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)
From return of capital		(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.32	)		(0.31	)		(0.27	)		(0.25	)		(0.20	)
Net asset value, end of year	$	9.44		$	9.12		$	9.57		$	9.87		$	9.82
Total Return(d)
Based on net asset value		7.18%			(1.51)%			(0.25)%			3.08%			2.09%
Ratios to Average Net Assets(e)
Total expenses		1.43%			1.32%			1.05%			0.98%	(f)		1.16%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.20%			1.09%			0.79%			0.92%			0.90%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.67%			0.67%			0.68%			0.90%			0.90%
Net investment income		2.70%			2.41%			1.68%			1.60%			1.15%
Supplemental Data
Net assets, end of year (000)	$	6,638		$	7,592		$	9,347		$	12,129		$	28,828
Portfolio turnover rate(g)		1,482%			1,450%			1,198%			1,139%			1,164%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, assumes the reinvestment of distributions. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%
(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (g)   Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		947	%		823	%		423	%		502	%		429	%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 85

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Investor A
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.17		$	9.63		$	9.93		$	9.87		$	9.87
Net investment income(a)		0.25			0.23			0.16			0.15			0.11
Net realized and unrealized gain (loss)		0.40			(0.38	)		(0.19	)		0.16			0.09
Net increase (decrease) from investment operations		0.65			(0.15	)		(0.03	)		0.31			0.20
Distributions(b)
From net investment income		(0.32)			(0.31	)		(0.27	)		(0.25	)		(0.20	)
From return of capital		(0.00)	(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00)	(c)
Total distributions		(0.32)			(0.31	)		(0.27	)		(0.25	)		(0.20	)
Net asset value, end of year	$	9.50		$	9.17		$	9.63		$	9.93		$	9.87
Total Return(d)
Based on net asset value		7.27%			(1.58)%			(0.23)%			3.19%			2.08%
Ratios to Average Net Assets(e)
Total expenses		1.43%			1.33%			1.01%	(f)		0.92%			1.07%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.20%			1.09%			0.78%			0.91%			0.91%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.67%			0.67%			0.68%			0.89%			0.91%
Net investment income		2.67%			2.44%			1.68%			1.51%			1.14%
Supplemental Data
Net assets, end of year (000)	$	137,065		$	120,582		$	172,685		$	256,577		$	186,427
Portfolio turnover rate(g)		1,482%			1,450%			1,198%			1,139%			1,164%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03%
(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (g) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		947%			823%			423%			502%			429%

See notes to financial statements.

86 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Investor C
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.13		$	9.58		$	9.88		$	9.83		$	9.83
Net investment income(a)		0.18			0.16			0.09			0.08			0.04
Net realized and unrealized gain (loss)		0.40			(0.37	)		(0.19	)		0.14			0.09
Net increase (decrease) from investment operations		0.58			(0.21	)		(0.10	)		0.22			0.13
Distributions(b)
From net investment income		(0.25	)		(0.24	)		(0.20	)		(0.17	)		(0.13	)
From return of capital		(0.00	)(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.25	)		(0.24	)		(0.20	)		(0.17	)		(0.13	)
Net asset value, end of year	$	9.46		$	9.13		$	9.58		$	9.88		$	9.83
Total Return(d)
Based on net asset value		6.49%			(2.24)%			(0.99)%			2.31%			1.32%
Ratios to Average Net Assets(e)
Total expenses		2.17%			2.07%			1.76%	(f)		1.68%			1.82%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.95%			1.84%			1.53%			1.67%			1.66%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.42%			1.42%			1.43%			1.65%			1.66%
Net investment income		1.96%			1.70%			0.93%			0.79%			0.40%
Supplemental Data
Net assets, end of year (000)	$	34,257		$	44,241		$	64,370		$	96,578		$	100,335
Portfolio turnover rate(g)		1,482%			1,450%			1,198%			1,139%			1,164%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.00	%		0.00	%		0.01	%		0.01	%		0.03	%
(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (g) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		947%			823%			423%			502%			429%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 87

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock GNMA Portfolio (continued)
	Class K
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.10		$	9.55		$	9.85		$	9.80		$	9.79
Net investment income(a)		0.27			0.25			0.19			0.19			0.15
Net realized and unrealized gain (loss)		0.41			(0.37	)		(0.19	)		0.15			0.10
Net increase (decrease) from investment operations		0.68			(0.12	)		—			0.34			0.25
Distributions(b)
From net investment income		(0.35)			(0.33	)		(0.30	)		(0.29	)		(0.24	)
From return of capital		(0.00)	(c)		—			(0.00	)(c)		(0.00	)(c)		(0.00	)(c)
Total distributions		(0.35)			(0.33	)		(0.30	)		(0.29	)		(0.24	)
Net asset value, end of year	$	9.43		$	9.10		$	9.55		$	9.85		$	9.80
Total Return(d)
Based on net asset value		7.62%			(1.22)%			0.04%			3.47%			2.58%
Ratios to Average Net Assets(e)
Total expenses		1.03%			0.94%			0.66%			0.56%			0.70%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.90%			0.79%			0.50%			0.54%			0.52%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.37%			0.37%			0.38%			0.52%			0.52%
Net investment income		2.93%			2.73%			2.00%			1.90%			1.49%
Supplemental Data
Net assets, end of year (000)	$	45,934		$	20,802		$	21,025		$	19,209		$	17,253
Portfolio turnover rate(f)		1,482%			1,450%			1,198%			1,139%			1,164%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, assumes the reinvestment of distributions. (e) Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.00%			0.00%			0.01%			0.01%			0.03%
(f)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		947%			823%			423%			502%			429%

See notes to financial statements.

88 2 0 1 9    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

Financial Highlights  

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio
	Institutional
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.03		$	10.45		$	10.76		$	10.64		$	10.59
Net investment income(a)		0.26			0.23			0.20			0.18			0.18
Net realized and unrealized gain (loss)		0.62			(0.40	)		(0.26	)		0.20			0.12
Net increase (decrease) from investment operations		0.88			(0.17	)		(0.06	)		0.38			0.30
Distributions(b)
From net investment income		(0.29	)		(0.25	)		(0.24	)		(0.26	)		(0.25	)
From return of capital		(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.29	)		(0.25	)		(0.25	)		(0.26	)		(0.25	)
Net asset value, end of year	$	10.62		$	10.03		$	10.45		$	10.76		$	10.64
Total Return(d)
Based on net asset value		8.86%			(1.68)%			(0.55)%			3.67%			2.80%
Ratios to Average Net Assets
Total expenses		1.20%			1.04%			0.90%			0.92%			0.92%
Total expenses after fees waived and/or reimbursed and paid indirectly		0.96%			0.76%			0.58%			0.73%			0.65%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.45%			0.45%			0.46%			0.62%			0.62%
Net investment income		2.51%			2.21%			1.81%			1.70%			1.71%
Supplemental Data
Net assets, end of year (000)	$	217,815		$	166,465		$	165,709		$	156,865		$	152,632
Portfolio turnover rate(e)		837%			892%			982%			929%			1,090%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, assumes the reinvestment of distributions. (e) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		571%			590%			658%			619%			741%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 89

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Service
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.03		$	10.45		$	10.75		$	10.63		$	10.58
Net investment income(a)		0.21			0.20			0.17			0.16			0.16
Net realized and unrealized gain (loss)		0.64			(0.40	)		(0.25	)		0.20			0.11
Net increase (decrease) from investment operations		0.85			(0.20	)		(0.08	)		0.36			0.27
Distributions(b)
From net investment income		(0.26	)		(0.22	)		(0.21	)		(0.24	)		(0.22	)
From return of capital		(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.26	)		(0.22	)		(0.22	)		(0.24	)		(0.22	)
Net asset value, end of year	$	10.62		$	10.03		$	10.45		$	10.75		$	10.63
Total Return(d)
Based on net asset value		8.60%			(1.93)%			(0.70)%			3.47%			2.61%
Ratios to Average Net Assets
Total expenses		1.48%			1.28%			1.18%			1.21%			1.14%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.21%			1.01%			0.82%			0.92%			0.84%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.70%			0.70%			0.70%			0.81%			0.81%
Net investment income		2.04%			1.96%			1.57%			1.51%			1.53%
Supplemental Data
Net assets, end of year (000)	$	8,040		$	541		$	2,039		$	4,452		$	3,575
Portfolio turnover rate(e)		837%			892%			982%			929%			1,090%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, assumes the reinvestment of distributions. (e) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		571%			590%			658%			619%			741%

See notes to financial statements.

90 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Investor A
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.06		$	10.47		$	10.79		$	10.66		$	10.61
Net investment income(a)		0.24			0.20			0.15			0.15			0.15
Net realized and unrealized gain (loss)		0.61			(0.39	)		(0.25	)		0.21			0.12
Net increase (decrease) from investment operations		0.85			(0.19	)		(0.10	)		0.36			0.27
Distributions(b)
From net investment income		(0.26	)		(0.22	)		(0.21	)		(0.23	)		(0.22	)
From return of capital		(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.26	)		(0.22	)		(0.22	)		(0.23	)		(0.22	)
Net asset value, end of year	$	10.65		$	10.06		$	10.47		$	10.79		$	10.66
Total Return(d)
Based on net asset value		8.57%			(1.82)%			(0.88)%			3.42%			2.52%
Ratios to Average Net Assets
Total expenses		1.47%			1.31%			1.16%	(e)		1.19%			1.10%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.21%			1.01%			0.83%			1.06%			0.94%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.70%			0.70%			0.71%			0.95%			0.90%
Net investment income		2.28%			1.96%			1.56%			1.40%			1.43%
Supplemental Data
Net assets, end of year (000)	$	354,704		$	353,770		$	422,775		$	463,530		$	517,485
Portfolio turnover rate(f)		837%			892%			982%			929%			1,090%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e) Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (f)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		571%			590%			658%			619%			741%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 91

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Investor C
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.04		$	10.46		$	10.77		$	10.65		$	10.60
Net investment income(a)		0.16			0.12			0.07			0.07			0.07
Net realized and unrealized gain (loss)		0.61			(0.40	)		(0.24	)		0.20			0.11
Net increase (decrease) from investment operations		0.77			(0.28	)		(0.17	)		0.27			0.18
Distributions(b)
From net investment income		(0.18	)		(0.14	)		(0.13	)		(0.15	)		(0.13	)
From return of capital		(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.18	)		(0.14	)		(0.14	)		(0.15	)		(0.13	)
Net asset value, end of year	$	10.63		$	10.04		$	10.46		$	10.77		$	10.65
Total Return(d)
Based on net asset value		7.78%			(2.66)%			(1.54)%			2.53%			1.68%
Ratios to Average Net Assets
Total expenses		2.30%			2.14%			1.94%			1.97%			1.91%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.96%			1.76%			1.58%			1.83%			1.75%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.45%			1.45%			1.46%			1.72%			1.72%
Net investment income		1.55%			1.21%			0.80%			0.62%			0.62%
Supplemental Data
Net assets, end of year (000)	$	26,193		$	35,014		$	38,574		$	51,545		$	49,408
Portfolio turnover rate(e)		837%			892%			982%			929%			1,090%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		571%			590%			658%			619%			741%

See notes to financial statements.

92 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Investor C1
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	10.04		$	10.46		$	10.77		$	10.64		$	10.60
Net investment income(a)		0.18			0.15			0.08			0.09			0.09
Net realized and unrealized gain (loss)		0.61			(0.41	)		(0.23	)		0.21			0.10
Net increase (decrease) from investment operations		0.79			(0.26	)		(0.15	)		0.30			0.19
Distributions(b)
From net investment income		(0.20	)		(0.16	)		(0.15	)		(0.17	)		(0.15	)
From return of capital		(0.00	)(c)		—			(0.01	)		—			—
Total distributions		(0.20	)		(0.16	)		(0.16	)		(0.17	)		(0.15	)
Net asset value, end of year	$	10.63		$	10.04		$	10.46		$	10.77		$	10.64
Total Return(d)
Based on net asset value		7.99%			(2.46)%			(1.34)%			2.82%			1.78%
Ratios to Average Net Assets
Total expenses		2.27%			2.04%			1.80%			1.83%			1.74%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.76%			1.56%			1.37%			1.64%			1.56%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		1.25%			1.25%			1.26%			1.53%			1.53%
Net investment income		1.76%			1.42%			1.00%			0.83%			0.81%
Supplemental Data
Net assets, end of year (000)	$	10,007		$	16,656		$	23,431		$	54,029		$	68,972
Portfolio turnover rate(e)		837%			892%			982%			929%			1,090%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		571%			590%			658%			619%			741%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 93

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Class K
	Year Ended 09/30/2019			Period from   01/25/18 (a)    to 09/30/18
Net asset value, beginning of period	$	10.04		$	10.27
Net investment income(b)		0.25			0.14
Net realized and unrealized gain (loss)		0.62			(0.20)
Net increase (decrease) from investment operations		0.87			(0.06)
Distributions(c)
From net investment income		(0.29	)		(0.17)
From return of capital		(0.00	)(d)		—
Total distributions		(0.29	)		(0.17)
Net asset value, end of period	$	10.62		$	10.04
Total Return(e)
Based on net asset value		8.81	%		(0.60)%(f)
Ratios to Average Net Assets
Total expenses		1.06	%		1.03%(g)(h)
Total expenses after fees waived and/or reimbursed and paid indirectly		0.91	%		0.86%(g)
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.40	%		0.40%(g)
Net investment income		2.44	%		2.03%(g)
Supplemental Data
Net assets, end of period (000)	$	5,031		$	1,517
Portfolio turnover rate(i)		837	%		892%(j)
(a) Commencement of operations.
(b) Based on average shares outstanding.
(c)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations.
(d) Amount is greater than $(0.005) per share.
(e) Where applicable, assumes the reinvestment of distributions.
(f)  Aggregate total return.
(g) Annualized.
(h) Offering and Board realignment and consolidation costs were not annualized in the calculation of the expense ratios. If these expenses were annualized, the total expenses would have been 1.04%.
(i)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended 09/30/2019			Period from 01/25/18 (a) to 09/30/18
Portfolio turnover rate (excluding MDRs)		571%			590%

^(j)  Portfolio turnover rate is representative of the Portfolio for the entire year.

See notes to financial statements.

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Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock U.S. Government Bond Portfolio (continued)
	Class R
	Year Ended September 30,
	2019			2018		2017		2016		2015
Net asset value, beginning of year	$	10.06		$	10.47	$	10.78	$	10.66	$	10.61
Net investment income(a)		0.21			0.18		0.13		0.12		0.12
Net realized and unrealized gain (loss)		0.61			(0.40)		(0.24)		0.20		0.11
Net increase (decrease) from investment operations		0.82			(0.22)		(0.11)		0.32		0.23
Distributions(b)
From net investment income		(0.23)			(0.19)		(0.19)		(0.20)		(0.18)
From return of capital		(0.00)	(c)		—		(0.01)		—		—
Total distributions		(0.23)			(0.19)		(0.20)		(0.20)		(0.18)
Net asset value, end of year	$	10.65		$	10.06	$	10.47	$	10.78	$	10.66
Total Return(d)
Based on net asset value		8.30%			(2.07)%		(1.04)%		3.06%		2.20%
Ratios to Average Net Assets
Total expenses		2.11%			1.64%		1.47%		1.49%		1.41%
Total expenses after fees waived and/or reimbursed and paid indirectly		1.46%			1.26%		1.08%		1.32%		1.24%
Total expenses after fees waived and/or reimbursed and paid indirectly and excluding interest expense		0.95%			0.95%		0.96%		1.21%		1.21%
Net investment income		2.06%			1.72%		1.30%		1.12%		1.13%
Supplemental Data
Net assets, end of year (000)	$	13,734		$	19,660	$	22,215	$	26,247	$	21,940
Portfolio turnover rate(e)		837%			892%		982%		929%		1,090%
(a) Based on average shares outstanding. (b) Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d) Where applicable, assumes the reinvestment of distributions. (e) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018		2017		2016		2015
Portfolio turnover rate (excluding MDRs)		571%			590%		658%		619%		741%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 95

Notes to Financial Statements

1. ORGANIZATION

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

Fund Name	Herein Referred To As	Diversification                 Classification
BlackRock Credit Strategies Income Fund	Credit Strategies Income	Diversified
BlackRock GNMA Portfolio	GNMA	Diversified
BlackRock U.S. Government Bond Portfolio	U.S. Government Bond	Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold without a sales charge and only to certain eligible investors. Class R Shares are sold without a sales charge and only to certain employer-sponsored retirement plans. Service, Investor A, Investor C, Investor C1 and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C and Investor C1 Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Investor C1 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C and, if applicable, Investor C1 Shares held for approximately ten years will be automatically converted into Investor A Shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C and Investor C1 shareholders may vote on material changes to the Investor A Shares distribution and service plan).

Share Class	Initial Sales Charge	CDSC			Conversion  Privilege
Institutional, Service, Class K and Class R Shares	No		No		None
Investor A Shares	Yes		No	(a)	None
Investor C and Investor C1 Shares	No		No	(b)	To Investor A Shares after approximately 10 years

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

^(b) A CDSC of 1.00% is assessed on certain redemptions of Investor C and C1 Shares made within one year after purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (“Manager”) or its affiliates, are included in a complex of open-end non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

Segregation and Collateralization: In cases where a Fund enters into certain investments (e.g., dollar rolls, TBA sale commitments, futures contracts, forward foreign currency exchange contracts, options written and swaps) or certain borrowings (e.g., reverse repurchase transactions) that would be treated as “senior securities” for 1940 Act purposes, a Fund may segregate or designate on its books and records cash or liquid assets having a market value at least equal to the amount of its future obligations under such investments or borrowings. Doing so allows the investment or borrowings to be excluded from treatment as a “senior security.” Furthermore, if required by an

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Notes to Financial Statements  (continued)

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

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. The portion of distributions, if any, that exceeds a fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. The character and timing of distributions are determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by the Trust’s Board effective January 1, 2019, the trustees/directors who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Trust until such amounts are distributed in accordance with the Plan.

Offering Costs: Offering costs are amortized over a 12-month period beginning with the commencement of operations of a class of shares.

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance on the Funds.

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

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

3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

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

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

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

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

• Investments in open-end U.S. mutual funds are valued at net asset value (“NAV”) each business day.

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

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 97

Notes to Financial Statements  (continued)

on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

• Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. OTC options and options on swaps (“swaptions”) are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

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

• To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services.

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

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

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

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

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

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

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

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

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3.

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Notes to Financial Statements  (continued)

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of September 30, 2019, certain investments of Credit Strategies Income were valued using NAV per share or its equivalent as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Asset-Backed and Mortgage-Backed Securities: Asset-backed securities are generally issued as pass-through certificates or as debt instruments. Asset-backed securities issued as pass-through certificates represent undivided fractional ownership interests in an underlying pool of assets. Asset-backed securities issued as debt instruments, which are also known as collateralized obligations, are typically issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security will have the effect of shortening the maturity of the security. In addition, a fund may subsequently have to reinvest the proceeds at lower interest rates. If a fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

For mortgage pass-through securities (the “Mortgage Assets”) there are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.

Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Collateralized Debt Obligations: Collateralized debt obligations (“CDOs”), including collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”), are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

Inflation-Indexed Bonds: Inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statements of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation- indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.

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Notes to Financial Statements  (continued)

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are typically issued by the U.S. Government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. Stripped mortgage-backed securities may be privately issued.

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

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

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.

When a fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, a fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. A fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a fund having a contractual relationship only with the lender, not with the borrower. A fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a fund assumes the credit risk of both the borrower and the lender that is selling the Participation. A fund’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a fund having a direct contractual relationship with the borrower, and a fund may enforce compliance by the borrower with the terms of the loan agreement.

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Notes to Financial Statements  (continued)

In connection with floating rate loan interests, certain funds may also enter into unfunded floating rate loan interests (“commitments”). In connection with these commitments, a fund earns a commitment fee, typically set as a percentage of the commitment amount. Such fee income, which is included in interest income in the Statements of Operations, is recognized ratably over the commitment period. Unfunded floating rate loan interests are marked-to-market daily, and any unrealized appreciation (depreciation) is included in the Statements of Assets and Liabilities and Statements of Operations. As of period end, Credit Strategies Income had the following unfunded floating rate loan interests:

Borrower	Par	Commitment Amount	Value	Unrealized Appreciation         (Depreciation)
Allied Universal Holdco LLC, Term Loan	$            199,112	$        197,515	$        199,206	$                1,691
BCPE Empire Holdings, Term Loan B	78,154	77,969	77,031	(938)
MED Parentco LP, Term Loan	144,094	142,968	142,689	(279)

Forward Commitments, When-Issued and Delayed Delivery Securities: Certain funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

TBA Commitments: TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. When entering into TBA commitments, a fund may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

In order to better define contractual rights and to secure rights that will help a fund mitigate their counterparty risk, TBA commitments may be entered into by a fund under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other things, collateral posting terms and netting provisions in the event of default and/or termination event. The collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of the collateral currently pledged by a fund and the counterparty. Cash collateral that has been pledged to cover the obligations of a fund and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a fund, if any, is noted in the Schedules of Investments. Typically, a fund is permitted to sell, re-pledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a fund are not fully collateralized, contractually or otherwise, a fund bears the risk of loss from counterparty non-performance.

Mortgage Dollar Roll Transactions: Certain funds may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and realize gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.

Reverse Repurchase Agreements: Reverse repurchase agreements are agreements with qualified third party broker dealers in which a fund sells securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. A fund receives cash from the sale to use for other investment purposes. During the term of the reverse repurchase agreement, a fund continues to receive the principal and interest payments on the securities sold. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. A fund may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk. If a fund suffers a loss on its investment of the transaction proceeds from a reverse repurchase agreement, a fund would still be required to pay the full repurchase price. Further, a fund remains subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, a fund would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

Cash received in exchange for securities delivered plus accrued interest due to the counterparty is recorded as a liability in the Statements of Assets and Liabilities at face value including accrued interest. Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value. Interest payments made by a fund to the counterparties are recorded as a component of interest expense in the Statements of Operations. In periods of increased demand for the security, a fund may receive a fee for the use of the security by the counterparty, which may result in interest income to a fund.

For the year ended September 30, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate for the Funds were as follows:

	GNMA		U.S. Government Bond
Average Borrowings	$	95,692,139	$	125,268,065
Daily Weighted Average Interest Rate		2.51%		2.42%

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Notes to Financial Statements  (continued)

Reverse repurchase transactions are entered into by a fund under Master Repurchase Agreements (each, an “MRA”), which permit a fund, under certain circumstances, including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables under the MRA with collateral held and/or posted to the counterparty and create one single net payment due to or from a fund. With reverse repurchase transactions, typically a fund and counterparty under an MRA are permitted to sell, re-pledge, or use the collateral associated with the transaction. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Pursuant to the terms of the MRA, a fund receives or posts securities and cash as collateral with a market value in excess of the repurchase price to be paid or received by a fund upon the maturity of the transaction. Upon a bankruptcy or insolvency of the MRA counterparty, a fund is considered an unsecured creditor with respect to excess collateral and, as such, the return of excess collateral may be delayed.

As of period end, the following table is a summary of a Fund’s open reverse repurchase agreements by counterparty which are subject to offset under an MRA on a net basis:

Counterparty		Reverse     Repurchase Agreements		Fair Value of Non-cash Collateral Pledged Including Accrued Interest	(a)		Cash         Collateral Pledged		Net             Amount
U.S. Government Bond
Bank of America Securities, Inc.	$	(50,225,151)	$	50,225,151		$	—	$	—
Deutsche Bank Securities, Inc.		(40,135,933)		40,135,933			—		—
	$	(90,361,084)	$	90,361,084		$	—	$	—

^(a)  Net collateral, including accrued interest, with a value of $90,426,460 has been pledged/received in connection with open reverse repurchase agreements. Excess of net collateral pledged to the individual counterparty is not shown for financial reporting purposes.

In the event the counterparty of securities under an MRA files for bankruptcy or becomes insolvent, a fund’s use of the proceeds from the agreement may be restricted while the counterparty, or its trustee or receiver, determines whether or not to enforce a fund’s obligation to repurchase the securities.

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

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

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

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated and in some cases, may be used to obtain exposure to a particular market.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statements of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies and such value may exceed the amounts reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statements of Assets and Liabilities.

Options: Certain Funds purchase and write call and put options to increase or decrease their exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

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Notes to Financial Statements  (continued)

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value — unaffiliated and options written at value, respectively, in the Statements of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statements of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statements of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Funds write a call option, such option is typically “covered,” meaning that they hold the underlying instrument subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statements of Assets and Liabilities.

• Swaptions — Certain Funds purchase and write options on swaps (“swaptions”) primarily to preserve a return or spread on a particular investment or portion of the Funds’ holdings, as a duration management technique or to protect against an increase in the price of securities it anticipates purchasing at a later date. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

• Foreign currency options — Certain Funds purchase and write foreign currency options, foreign currency futures and options on foreign currency futures to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk). Foreign currency options give the purchaser the right to buy from or sell to the writer a foreign currency at any time before the expiration of the option.

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that they may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when it otherwise would not, or at a price different from the current market value.

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

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

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Funds’ counterparty on the swap agreement becomes the CCP. The Funds are required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statements of Operations.

• Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).

The Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Funds will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

• Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.

• Currency swaps — Currency swaps are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

Currency swaps are interest rate swaps in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of

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Notes to Financial Statements  (continued)

interest payments, either fixed or floating, based on the notional amounts of two different currencies. The notional amounts are typically determined based on the spot exchange rates at the inception of the trade. Currency swaps may also involve an exchange of notional amounts at the start, during and/or at expiration of the contract, either at the current spot rate or another specified rate.

• Forward swaps — Certain Funds enter into forward interest rate swaps and forward total return swaps. In a forward swap, each Fund and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.

• Inflation swaps — Inflation swaps are entered into to gain or reduce exposure to inflation (inflation risk). In an inflation swap, one party makes fixed interest payments on a notional principal amount in exchange for another party’s variable payments based on an inflation index, such as the Consumer Price Index.

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

Master Netting Arrangements: In order to define their contractual rights and to secure rights that will help them mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

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

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

	Credit Strategies   Income
Average Daily Net Assets	Investment   Advisory Fees
First $1 Billion		0.500%
$1 Billion — $2 Billion		0.450
$2 Billion — $3 Billion		0.425
Greater than $3 Billion		0.400

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Notes to Financial Statements  (continued)

	GNMA			U.S. Government   Bond
Average Daily Net Assets	Investment Advisory Fees			Investment   Advisory Fees
First $1 Billion		0.340	%		0.390%
$1 Billion — $3 Billion		0.320			0.370
$3 Billion — $5 Billion		0.310			0.350
$5 Billion — $10 Billion		0.300			0.340
Greater than $10 Billion		0.280			0.330

With respect to Credit Strategies Income, the Manager entered into separate sub-advisory agreements with BlackRock International Limited (“BIL”) and BlackRock (Singapore) Limited (“BRS”), each an affiliate of the Manager. The Manager pays BIL and BRS for services they provide for that portion of the Fund for which BIL and BRS, as applicable, acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by Credit Strategies Income to the Manager.

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

	Service Fees			Distribution Fees
Service		0.25	%		—%
Investor A		0.25			—
Investor C		0.25			0.75
Investor C1		0.25			0.55
Class R		0.25			0.25

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

For the year ended September 30, 2019, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

	Service		Investor A		Investor C		Investor C1		Class R		Total
Credit Strategies Income	$	—	$	207,569	$	302,429	$	—	$	—	$	509,998
GNMA		18,081		318,149		343,833		—		—		680,063
U.S. Government Bond		6,952		889,743		307,200		102,892		85,108		1,391,895

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

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

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

For the year ended September 30, 2019, the following table shows the class specific administration fees borne directly by each share class of each Fund:

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	132,049	$	—	$	16,605	$	6,048	$	—	$	9,567	$	—	$	164,269
GNMA		50,579		1,446		25,450		6,876		—		7,002		—		91,353
U.S. Government Bond		37,029		556		71,173		6,144		2,572		554		3,404		121,432

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 105

Notes to Financial Statements  (continued)

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended September 30, 2019, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Service		Investor A		Total
GNMA	$	16,401	$	1,909	$	1,011	$	19,321
U.S. Government Bond		90,313		373		2,255		92,941

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended September 30, 2019, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	1,153	$	—	$	881	$	2,052	$	—	$	1,985	$	—	$	6,071
GNMA		14,882		19		2,879		1,653		—		139		—		19,572
U.S. Government Bond		799		19		23,649		1,264		138		18		95		25,982

For the year ended September 30, 2019, the following table shows the class specific transfer agent fees borne directly by each share class of each Fund:

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	638,197	$	—	$	85,082	$	32,391	$	—	$	10,926	$	—	$	766,596
GNMA		286,669		10,804		195,390		48,625		—		462		—		541,950
U.S. Government Bond		280,436		5,599		612,880		77,408		53,951		541		95,376		1,126,191

Other Fees: For the year ended September 30, 2019 affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

Credit Strategies Income	$	27,127
GNMA		17,879
U.S. Government Bond		5,733

For the year ended September 30, 2019, affiliates received CDSCs as follows:

	Investor A		Investor C
Credit Strategies Income	$	1,731	$	3,693
GNMA		237		1,259
U.S. Government Bond		4,209		4,417

Expense Limitations, Waivers, Reimbursements, and Recoupments: With respect to each Fund, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. This amount is included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amounts waived were as follows:

Credit Strategies Income	$	54,294
GNMA		2,458
U.S. Government Bond		2,535

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through January 31, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees or by a vote of a majority of the outstanding voting securities of a Fund. This amount is included in fees waived and/ or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, Credit Strategies Income waived $113,198 in investment advisory fees pursuant to this arrangement.

The Funds have incurred expenses in connection with the realignment and consolidation of the boards of directors/trustees of certain BlackRock-advised funds. The Manager has voluntarily agreed to reimburse certain Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amounts reimbursed were as follows:

Credit Strategies Income	$	38,034
GNMA		49,383
U.S. Government Bond		67,830

106 2 0 1 9    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

Notes to Financial Statements  (continued)

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

	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R
Credit Strategies Income		0.62%		N/A		0.87%		1.62%		N/A		0.57%		N/A
GNMA		0.42		0.67%		0.67		1.42		N/A		0.37		1.17%(a)
U.S. Government Bond		0.45		0.70		0.70		1.45		1.25%		0.40		0.95

^(a)  Share class currently active, but no assets in share class.

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 2020, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amounts included in fees waived and/or reimbursed by the Manager in the Statements of Operations were as follows:

Credit Strategies Income	$	496,219
GNMA		465,566
U.S. Government Bond		693,316

These amounts waived and/or reimbursed are included in administration fees waived — class specific and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statements of Operations. For the year ended September 30, 2019, class specific expense waivers and/or reimbursements are as follows:

Administration Fees Waived	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	131,698	$	—	$	16,576	$	6,044	$	—	$	9,539	$	—	$	163,857
GNMA		50,579		1,446		25,450		6,876		—		7,002		—	$	91,353
U.S. Government Bond		37,028		550		71,172		6,144		2,572		554		3,404	$	121,424

Transfer Agent Fees Waived and/or Reimbursed	Institutional		Service		Investor A		Investor C		Investor C1		Class K		Class R		Total
Credit Strategies Income	$	331,155	$	—	$	47,352	$	18,855	$	—	$	10,435	$	—	$	407,797
GNMA		160,579		7,196		131,829		31,423		—		463		—	$	331,490
U.S. Government Bond		181,804		4,141		423,326		61,098		47,028		478		86,225	$	804,100

With respect to the contractual expense limitation, if during a Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) each Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as a Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 107

Notes to Financial Statements  (continued)

As of September 30, 2019, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring September 30,
	2020		2021
Credit Strategies Income
Fund Level	$	664,969	$	496,219
Institutional		230,226		462,853
Investor A		90,715		63,928
Investor C		20,726		24,899
Class K		1,461		19,974
GNMA
Fund Level		572,508		465,565
Institutional		264,722		211,158
Service		8,863		8,642
Investor A		153,353		157,279
Investor C		55,052		38,299
Class K		4,904		7,465
U.S. Government Bond
Fund Level		702,225		693,316
Institutional		241,975		218,832
Service		2,652		4,691
Investor A		652,882		494,498
Investor C		93,152		67,242
Investor C1		66,151		49,600
Class K		143		1,032
Class R		50,276		89,629

The following fund level and class specific waivers and/or reimbursements previously recorded by the Funds, which were subject to recoupment by the Manager, expired on September 30, 2019:

	Credit Strategies Income		GNMA		U.S. Government Bond
Fund Level	$	803,546	$	953,892	$	1,061,276
Institutional		138,899		293,432		270,711
Service		—		14,157		8,837
Investor A		94,871		179,172		743,595
Investor C		20,190		74,667		89,731
Investor C1		—		—		107,294
Class K		96		4,805		—
Class R		—		—		56,634

Interfund Lending: In accordance with an exemptive order (the “Order”) from the U.S. Securities and Exchange Commission (“SEC”), each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 331/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended September 30, 2019, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Trust are trustees and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended September 30, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:

	Purchases		Sales		Net Realized Gain (Loss)
Credit Strategies Income	$	3,604,223	$	385,769	$	(34,216)
U.S. Government Bond		1,985		—		—

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Notes to Financial Statements  (continued)

7. PURCHASES AND SALES

For the year ended September 30, 2019, purchases and sales of investments, including paydowns and mortgage dollar rolls and excluding short-term securities, were as follows:

	Credit Strategies Income		GNMA		U.S. Government Bond
Purchases
Non-U.S. Government Securities	$	1,054,504,935	$	9,933,084,719	$	5,400,292,751
U.S. Government Securities		1,031,250		4,729,198		386,821,343
	$	1,055,536,185	$	9,937,813,917	$	5,787,114,094
Sales
Non-U.S. Government Securities	$	558,451,498	$	9,918,869,121	$	5,373,645,606
U.S. Government Securities		24,491,346		4,507,045		379,065,693
	$	582,942,844	$	9,923,376,166	$	5,752,711,299

For the year ended September 30, 2019, purchases and sales related to mortgage dollar rolls were as follows:

	GNMA		U.S. Government Bond
Purchases	$	3,581,382,510	$	1,828,362,336
Sales		3,582,677,180		1,827,964,768

8. INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended September 30, 2019. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of period end, the following permanent differences attributable to distributions paid in excess of taxable income were reclassified to the following accounts:

	GNMA			U.S. Government Bond
Paid in capital	$	(383,420	)	$	(612,141	)
Accumulated earnings (loss)		383,420			612,141

The tax character of distributions paid was as follows:

	Ordinary Income		Return of Capital		Total
Credit Strategies Income
09/30/19	$	40,650,633	$	—	$	40,650,633
09/30/18		21,183,137		—		21,183,137
GNMA
09/30/19		16,337,810		62,473		16,400,283
09/30/18		17,158,118		—		17,158,118
U.S. Government Bond
09/30/19		15,401,571		57,722		15,459,293
09/30/18		13,659,796		—		13,659,796

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 109

Notes to Financial Statements  (continued)

As of period end, the tax components of accumulated net earnings (losses) were as follows:

	Undistributed Ordinary Income		Non-expiring Capital Loss     Carryforward (a)			Net Unrealized Gains (Losses) (b)		Qualified Late-year Losses (c)			Total
Credit Strategies Income	$	5,344,835	$	—		$	8,194,472	$	—		$	13,539,307
GNMA		—		(72,661,922	)		6,832,593		—			(65,829,329	)
U.S. Government Bond		—		(48,622,814	)		11,078,178		(419,454	)		(37,964,090	)

^(a) Amounts available to offset future realized capital gains.

^(b) The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales, the realization for tax purposes of unrealized gains/losses on certain futures, options, and foreign currency contracts, the timing and recognition of partnership income, dividends deemed recognized for tax purposes, the accounting for swap agreements and the classification of investments.

^(c) The Funds have elected to defer certain qualified late-year losses and recognize such losses in the next taxable year.

During the year ended September 30, 2019, the Funds listed below utilized the following amounts of their respective capital loss carryforward:

	Credit     Strategies Income		U.S. Government Bond
Amount utilized	$	3,397,033	$	6,598,515

As of September 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Credit Strategies Income			GNMA			U.S. Government Bond
Tax cost	$	1,167,216,560		$	910,765,859		$	852,350,658
Gross unrealized appreciation	$	21,853,730		$	13,692,816		$	23,761,252
Gross unrealized depreciation		(13,654,999	)		(6,577,369	)		(12,093,652	)
Net unrealized appreciation	$	8,198,731		$	7,115,447		$	11,667,600

9. BANK BORROWINGS

BlackRock Funds V, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Of the aggregate $2.25 billion commitment amount, $500 million is specifically designated to Credit Strategies Income and the BlackRock Floating Rate Income Portfolio in the aggregate. The remaining $1.75 billion commitment is available to all Participating Funds, but Credit Strategies Income and BlackRock Floating Rate Income Portfolio can borrow up to an additional $350 million in the aggregate of the remaining aggregate commitment, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amount sand interest at a rate equal to the higher of (a) one-month LIBOR (but in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statements of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended September 30, 2019, the Funds did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

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

110 2 0 1 9    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

Notes to Financial Statements  (continued)

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

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

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

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

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

For OTC options purchased, each Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Funds should the counterparty fail to perform under the contracts. Options written by the Funds do not typically give rise to counterparty credit risk, as options written generally obligate the Funds, and not the counterparty, to perform. The Funds may be exposed to counterparty credit risk with respect to options written to the extent each Fund deposits collateral with its counterparty to a written option.

With exchange-traded options purchased, futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

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

Certain Funds invest a significant portion of their assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Investment percentages in these securities are presented in the Schedules of Investments. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions.

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Year Ended 09/30/19						Year Ended 09/30/18
	Shares			Amount			Shares			Amount
Credit Strategies Income
Institutional
Shares sold		65,723,825		$	663,085,768			30,663,664		$	312,912,888
Shares issued in reinvestment of distributions		2,914,388			29,393,206			1,431,697			14,608,534
Shares redeemed		(24,678,714	)		(247,207,703	)		(19,647,469	)		(201,012,316	)
Net increase		43,959,499		$	445,271,271			12,447,892		$	126,509,106

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 111

Notes to Financial Statements  (continued)

	Year Ended 09/30/19						Year Ended 09/30/18
	Shares			Amount			Shares			Amount
Investor A
Shares sold and automatic conversion of shares		6,426,382		$	64,943,941			3,166,847		$	32,449,295
Shares issued in reinvestment of distributions		368,175			3,706,033			368,057			3,759,810
Shares redeemed		(4,273,098	)		(42,987,376	)		(6,732,725	)		(68,655,355	)
Net increase (decrease)		2,521,459		$	25,662,598			(3,197,821	)	$	(32,446,250	)
Investor C
Shares sold		1,111,478		$	11,196,542			720,427		$	7,385,232
Shares issued in reinvestment of distributions		115,945			1,164,939			90,789			926,825
Shares redeemed and automatic conversion of shares		(1,049,227	)		(10,552,124	)		(831,606	)		(8,503,523	)
Net increase (decrease)		178,196		$	1,809,357			(20,390	)	$	(191,466	)
Class K
Shares sold		6,948,483		$	70,078,828			1,636,086		$	16,620,739
Shares issued in reinvestment of distributions		231,036			2,339,282			18,750			189,994
Shares redeemed		(981,717	)		(9,938,096	)		(110,413	)		(1,124,588	)
Net increase		6,197,802		$	62,480,014			1,544,423		$	15,686,145
Total Net Increase		52,856,956		$	535,223,240			10,774,104		$	109,557,535
GNMA
Institutional
Shares sold		15,427,334		$	142,988,642			8,235,177		$	76,954,602
Shares issued in reinvestment of distributions		864,234			8,003,637			907,201			8,440,083
Shares redeemed		(15,566,731	)		(144,024,973	)		(14,927,980	)		(138,958,841	)
Net increase (decrease)		724,837		$	6,967,306			(5,785,602	)	$	(53,564,156	)
Service
Shares sold		164,494		$	1,526,020			237,288		$	2,211,882
Shares issued in reinvestment of distributions		27,198			251,100			30,051			279,000
Shares redeemed		(321,603	)		(2,989,876	)		(411,148	)		(3,839,839	)
Net decrease		(129,911	)	$	(1,212,756	)		(143,809	)	$	(1,348,957	)
Investor A
Shares sold and automatic conversion of shares		5,250,976		$	48,741,502			2,188,335		$	20,624,609
Shares issued in reinvestment of distributions		450,307			4,187,905			476,811			4,457,112
Shares redeemed		(4,421,131	)		(41,065,515	)		(7,454,101	)		(70,067,424	)
Net increase (decrease)		1,280,152		$	11,863,892			(4,788,955	)	$	(44,985,703	)
Investor C
Shares sold		1,163,829		$	10,937,269			342,624		$	3,226,389
Shares issued in reinvestment of distributions		91,518			845,219			129,810			1,207,606
Shares redeemed and automatic conversion of shares		(2,479,363	)		(22,822,846	)		(2,342,985	)		(21,833,050	)
Net decrease		(1,224,016	)	$	(11,040,358	)		(1,870,551	)	$	(17,399,055	)
Class K
Shares sold		3,022,864		$	27,813,799			564,163		$	5,237,470
Shares issued in reinvestment of distributions		142,490			1,318,004			81,540			755,360
Shares redeemed		(578,778	)		(5,332,217	)		(560,546	)		(5,187,856	)
Net increase		2,586,576		$	23,799,586			85,157		$	804,974
Total Net Increase (Decrease)		3,237,638		$	30,377,670			(12,503,760	)	$	(116,492,897	)
U.S. Government Bond
Institutional
Shares sold		10,668,766		$	109,831,549			6,415,507		$	65,409,242
Shares issued in reinvestment of distributions		384,160			3,965,079			290,375			2,961,241
Shares redeemed		(7,136,526	)		(73,080,273	)		(5,974,946	)		(60,945,688	)
Net increase		3,916,400		$	40,716,355			730,936		$	7,424,795
Service
Shares sold		751,150		$	7,875,541			22,592		$	232,303
Shares issued in reinvestment of distributions		6,221			65,067			4,094			41,757
Shares redeemed		(54,005	)		(556,203	)		(167,939	)		(1,689,673	)
Net increase (decrease)		703,366		$	7,384,405			(141,253	)	$	(1,415,613	)
Investor A
Shares sold and automatic conversion of shares		8,716,105		$	89,895,499			3,984,573		$	40,780,328
Shares issued from conversion(a)		—			—			6,251			64,884
Shares issued in reinvestment of distributions		730,163			7,535,350			681,003			6,965,635
Shares redeemed		(11,304,953	)		(116,685,677	)		(9,863,976	)		(100,907,231	)
Net decrease		(1,858,685	)	$	(19,254,828	)		(5,192,149	)	$	(53,096,384	)

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Notes to Financial Statements  (continued)

	Year Ended 09/30/19						Year Ended 09/30/18
	Shares			Amount			Shares			Amount
Investor B1
Shares sold		—		$	—			—		$	2
Shares issued in reinvestment of distributions		—			—			21			217
Shares converted(a)		—			—			(6,275	)		(64,884	)
Shares redeemed		—			—			(1,114	)		(11,585	)
Net decrease		—		$	—			(7,368	)	$	(76,250	)
Investor C
Shares sold		1,161,487		$	11,995,422			1,024,029		$	10,546,671
Shares issued in reinvestment of distributions		48,463			498,458			46,914			479,246
Shares redeemed and automatic conversion of shares		(2,232,542	)		(23,016,807	)		(1,272,743	)		(12,997,763	)
Net decrease		(1,022,592	)	$	(10,522,927	)		(201,800	)	$	(1,971,846	)
Investor C1
Shares sold		338,307		$	3,502,377			254,602		$	2,603,380
Shares issued in reinvestment of distributions		25,010			256,867			30,010			306,631
Shares redeemed		(1,080,651	)		(11,093,108	)		(866,715	)		(8,881,566	)
Net decrease		(717,334	)	$	(7,333,864	)		(582,103	)	$	(5,971,555	)
							Period from 01/25/18 (b) to 09/30/18
Class K
Shares sold		377,980		$	3,927,086			178,325		$	1,808,269
Shares issued in reinvestment of distributions		6,679			69,463			1,517			15,354
Shares redeemed		(62,292	)		(647,151	)		(28,659	)		(290,017	)
Net increase		322,367		$	3,349,398			151,183		$	1,533,606
							Year Ended 09/30/18
Class R
Shares sold		623,197		$	6,385,776			605,380		$	6,198,711
Shares issued in reinvestment of distributions		38,152			392,618			38,013			388,804
Shares redeemed		(1,326,242	)		(13,655,183	)		(809,824	)		(8,288,824	)
Net decrease		(664,893	)	$	(6,876,789	)		(166,431	)	$	(1,701,309	)
Total Net Increase (Decrease)		678,629		$	7,461,750			(5,408,985	)	$	(55,274,556	)

^(a)  Effective December 27, 2017, Investor B1 shares were converted into Investor A shares.

^(b)  Commencement of operations.

As of September 30, 2019, BlackRock HoldCo 2, Inc., an affiliate of the Funds, owned 19,841 Class K Shares of Credit Strategies Income and BlackRock Financial Management, Inc., an affiliate of the Funds, owned 19,550 Class K Shares of U.S. Government Bond.

12. REGULATION S-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation in the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to Financial Statements.

Prior year distribution information and undistributed (distributions in excess of) net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 113

Notes to Financial Statements  (continued)

Distributions for the year ended September 30, 2018 were classified as follows:

Fund Name	Class	Net Investment Income
Credit Strategies Income	Institutional	$	(16,112,100	)
	Investor A		(3,885,278	)
	Investor C		(986,678	)
	Class K		(199,081	)
GNMA	Institutional		(10,078,634	)
	Service		(279,131	)
	Investor A		(4,674,749	)
	Investor C		(1,369,949	)
	Class K		(755,655	)
U.S. Government Bond	Institutional		(3,998,385	)
	Service		(41,989	)
	Investor A		(8,369,184	)
	Investor B1 (a)		(302	)
	Investor C		(534,817	)
	Investor C1		(307,943	)
	Class K		(17,877	)
	Class R		(389,299	)

^(a)  Effective December 27, 2017, Investor B1 shares were converted into Investor A shares.

Undistributed (distributions in excess of) net investment income as of September 30, 2018 was as follows:

	Undistributed (Distributions in Excess of) Net Investment Income
Credit Strategies Income	$	(94,529	)
GNMA		7,754
U.S. Government Bond		(1,459,210	)

13. SUBSEQUENT EVENTS

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

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Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Credit Strategies Income Fund, BlackRock GNMA Portfolio and BlackRock U.S. Government Bond Portfolio and the Board of Trustees of BlackRock Funds V:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock Credit Strategies Income Fund, BlackRock GNMA Portfolio and BlackRock U.S. Government Bond Portfolio of BlackRock Funds V (the “Funds”), including the schedules of investments, as of September 30, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, the statement of cash flows for BlackRock U.S. Government Bond Portfolio for the year then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of September 30, 2019, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, and the cash flows of BlackRock U.S. Government Bond Portfolio for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2019, by correspondence with the custodian, agent banks and brokers; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

November 20, 2019

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

Important Tax Information  (unaudited)

During the fiscal year ended September 30, 2019, the following information is provided with respect to the ordinary income distribution paid by the Funds:

	Payable Dates	Credit Strategies Income			GNMA	U.S. Government Bond
Interest-Related Dividends and Qualified Short-Term Capital Gains for Non-U.S. Residents(a)	October 2018 — December 2018		48.83	%	100.00%	100.00%
	January 2019 — September 2019		60.17		100.00	89.19
Qualified Dividend Income for Individuals(b)	October 2018		7.33		—	—
	November 2018 — December 2018		6.20		—	—
	January 2019 — September 2019		4.65		—	—
Dividends Qualifying for the Dividends Received Deductions for Corporations(b)	October 2018 — September 2019		0.51		—	—
Federal Obligation Interest(c)	October 2018 — September 2019		2.20		1.52	44.53

^(a)  Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

^(b)  The Fund hereby designates the percentage indicated above or the maximum amount allowable by law.

^(c)  The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.

R E P O R T   O F   I N D E P E N D E N T   R E G I S T E R E D   P U B L I C   A C C O U N T I N G   F I R M   /   I M P O R T A N T   T A X   I N F O R M A T I O N 115

Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds V (the “Trust”) met in person on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement”) between the Trust, on behalf of each of BlackRock Credit Strategies Income Fund (the “Credit Strategies Income Fund”), BlackRock GNMA Portfolio (the “GNMA Portfolio”) and BlackRock U.S. Government Bond Portfolio (the “U.S. Government Bond Portfolio” and together with the Credit Strategies Income Fund and the GNMA Portfolio, the “Funds” and each, a “Fund”), each a series of the Trust, and BlackRock Advisors, LLC (the “Manager”), each Fund’s investment advisor. The Board also considered the approval of the sub-advisory agreements (collectively, the “Sub-Advisory Agreements”) between the Manager and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited (together, the “Sub-Advisors”), with respect to the Credit Strategies Income Fund. The Manager and the Sub-Advisors are referred to herein as “BlackRock.” The Advisory Agreement and the Sub-Advisory Agreements are referred to herein as the “Agreements.”

Activities and Composition of the Board

On the date of the June Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of the Board are Independent Board Members. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreements

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreements on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreements, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to each Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of management.

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

Board Considerations in Approving the Agreements

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

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreements. As a result of the discussions that occurred during the May Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability;

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

(b) economies of scale; (c) fund expenses and potential fee waivers; and (d) differences in services provided and management fees between open-end funds and other product channels.

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

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

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

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

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

B. The Investment Performance of each Fund and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the May Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

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

The Board noted that for the one-, three- and five-year periods reported, the Credit Strategies Income Fund ranked in the second, second, and first quartiles, respectively, against its Performance Peers.

The Board noted that for the one-, three- and five-year periods reported, the GNMA Portfolio ranked in the third, third and first quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the GNMA Portfolio’s underperformance during the applicable periods.

The Board noted that for the one-, three- and five-year periods reported, the U.S. Government Bond Portfolio ranked in the third, second, and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the U.S. Government Bond Portfolio’s underperformance during the applicable period.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The

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

total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non 12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31,2018 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is difficult.

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

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

The Board noted that the Credit Strategies Income Fund’s contractual management fee rate ranked in the third quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Credit Strategies Income Fund’s Expense Peers. The Board also noted that the Credit Strategies Income Fund has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Credit Strategies Income Fund increases above certain contractually specified levels. The Board noted that if the size of the Credit Strategies Income Fund were to decrease, the Credit Strategies Income Fund could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Credit Strategies Income Fund’s total expenses as a percentage of the Credit Strategies Income Fund’s average daily net assets on a class-by-class basis. In addition, the Board noted that BlackRock proposed, and the Board agreed to, a lower contractual expense cap on a class-by-class basis. This expense cap reduction was implemented on March 29, 2018.

The Board noted that the GNMA Portfolio’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the first quartile, relative to the GNMA Portfolio’s Expense Peers. The Board also noted that the GNMA Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the GNMA Portfolio increases above certain contractually specified levels. The Board noted that if the size of the GNMA Portfolio were to decrease, the GNMA Portfolio could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the GNMA Portfolio’s total expenses as a percentage of the GNMA Portfolio’s average daily net assets on a class-by-class basis.

The Board noted that the U.S. Government Bond Portfolio’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the U.S. Government Bond Portfolio’s Expense Peers. The Board also noted that the U.S. Government Bond Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the U.S. Government Bond Portfolio increases above certain contractually specified levels. The Board noted that if the size of the U.S. Government Bond Portfolio were to decrease, the U.S. Government Bond Portfolio could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the U.S. Government Bond Portfolio’s total expenses as a percentage of the U.S. Government Bond Portfolio’s average daily net assets on a class-by-class basis.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and expense caps had been approved by the Board. The Board also considered the extent to which each Fund benefits from such economies in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate. In its consideration, the Board Members took into account the existence of any expense caps and further considered the continuation and/or implementation, as applicable, of such caps.

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

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

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

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

Conclusion

The Board, including the Independent Board Members, approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of each Fund, for a one-year term ending June 30, 2020, and the Sub-Advisory Agreements between the Manager and the Sub-Advisors, with respect to the Credit Strategies Income Fund, for a one-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreements were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

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Trustee and Officer Information

Independent Trustees (a)
Name Year of Birth (b)	Position(s) Held (Length of Service) (c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships held During Past Five Years
Richard E. Cavanagh 1946	Co-Chair of the Board and Trustee (Since 2019)	Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.	86 RICs consisting of 110 Portfolios	None
Karen P. Robards 1950	Co-Chair of the Board and Trustee (Since 2019)	Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987.	86 RICs consisting of 110 Portfolios	Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017
Michael J. Castellano 1946	Trustee (Since 2019)	Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015.	86 RICs consisting of 110 Portfolios	None
Cynthia L. Egan 1955	Trustee (Since 2019)	Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007.	86 RICs consisting of 110 Portfolios	Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016
Frank J. Fabozzi (d) 1948	Trustee (Since 2019)	Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011.	87 RICs consisting of 111 Portfolios	None
Henry Gabbay 1947	Trustee (Since 2007)	Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity and BlackRock Closed-End Fund Boards from 2007 through 2014; Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	86 RICs consisting of 110 Portfolios	None
R. Glenn Hubbard 1958	Trustee (Since 2019)	Dean, Columbia Business School from 2004 to 2019; Faculty member, Columbia Business School since 1988.	86 RICs consisting of 110 Portfolios	ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014
W. Carl Kester(d) 1951	Trustee (Since 2019)	George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.	87 RICs consisting of 111 Portfolios	None

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Trustee and Officer Information  (continued)

Independent Trustees (a) (continued)
Name Year of Birth (b)	Position(s) Held (Length of Service) (c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships held During Past Five Years
Catherine A. Lynch(d) 1961	Trustee (Since 2019)	Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999.	87 RICs consisting of 111 Portfolios	None
Interested Trustees (a)(e)
Robert Fairbairn 1965	Trustee (Since 2015)	Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BIackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.	123 RICs consisting of 289 Portfolios	None
John M. Perlowski(d) 1964	Trustee (Since 2015); President and Chief Executive Officer (Since 2010)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.	124 RICs consisting of 290 Portfolios	None
(a) The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. (b) Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate. (c)  Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Trustees first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. Certain other Independent Trustees became members of the boards of the closed-end funds in the Fixed-Income Complex as follows: Michael J. Castellano, 2011; Cynthia L. Egan, 2016; and Catherine A. Lynch, 2016. (d) Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund. (e) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

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Trustee and Officer Information  (continued)

Officers Who Are Not Trustees (a)
Name Year of Birth(b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years
Jennifer McGovern 1977	Vice President (Since 2014)	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Product Development and Oversight for BlackRock’s Strategic Product Management Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews 1966	Chief Financial Officer (Since 2007)	Chief Financial Officer of the iShares® exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife 1970	Treasurer (Since 2007)	Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle 1968	Anti-Money Laundering Compliance Officer (Since 2019)	Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn 1975	Secretary (Since 2019)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.
(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. (b) Officers of the Trust serve at the pleasure of the Board.

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Effective September 4, 2019, Janey Ahn replaced Benjamin Archibald as the Secretary of the Trust.

Effective September 5, 2019, Lisa Belle replaced John MacKessy as the Anti-Money Laundering Compliance Officer of the Trust.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers^(a)

BlackRock International Limited

Edinburgh, EH3 8BL, United Kingdom

BlackRock (Singapore) Limited

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

^(a)  For Credit Strategies Income.

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Additional Information

General Information

Householding

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

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at http://www.sec.gov. The Funds’ Forms N-PORT and N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

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

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

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

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

A D D I T I O N A L   I N F O R M A T I O N 123

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

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Glossary of Terms Used in this Report

Currency
ARS	Argentine Peso
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
CNY	Chinese Yuan
COP	Colombian Peso
EUR	Euro
GBP	British Pound
HKD	Hong Kong Dollar
IDR	Indonesian Rupiah
INR	Indian Rupee
JPY	Japanese Yen
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
RUB	New Russian Ruble
SEK	Swedish Krona
TWD	Taiwan New Dollar
USD	United States Dollar
ZAR	South African Rand
Portfolio Abbreviations
BZDIOVER	Overnight Brazil CETIP — Interbank Rate
CLO	Collateralized Loan Obligation
DAC	Designated Activity Company
ETF	Exchange-Traded Fund
EURIBOR	Euro Interbank Offered Rate
FDR	Fiduciary Depositary Receipt
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
MXIBTIIE	Mexico Interbank TIIE 28-Day
OTC	Over-the-counter
PCL	Public Company Limited
PIK	Payment-In-Kind
REIT	Real Estate Investment Trust
S&P	Standard & Poor’s
SOFR	Secured Overnight Financing Rate
SPDR	Standard & Poor’s Depositary Receipts
TBA	To-be-announced

G L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T 125

Want to know more?

blackrock.com     |     877-275-1255 (1-877-ASK-1BLK)

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

TaxableCGU-9/19-AR

SEPTEMBER 30, 2019

2019 Annual Report

BlackRock Funds V

· BlackRock Core Bond Portfolio

· BlackRock High Yield Bond Portfolio

· BlackRock Low Duration Bond Portfolio

Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of each Fund’s shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports from BlackRock or from your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on a website, and you will be notified by mail each time a report is posted and provided with a website link to access the report.

You may elect to receive all future reports in paper free of charge. If you hold accounts directly with BlackRock, you can call (800) 441-7762 to inform BlackRock that you wish to continue receiving paper copies of your shareholder reports. If you hold accounts through a financial intermediary, you can follow the instructions included with this disclosure, if applicable, or contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. Please note that not all financial intermediaries may offer this service. Your election to receive reports in paper will apply to all funds advised by BlackRock Advisors, LLC, BlackRock Fund Advisors or their affiliates, or all funds held with your financial intermediary, as applicable.

If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive electronic delivery of shareholder reports and other communications by: (i) accessing the BlackRock website at www.blackrock.com/edelivery and logging into your accounts, if you hold accounts directly with BlackRock, or (ii) contacting your financial intermediary, if you hold accounts through a financial intermediary. Please note that not all financial intermediaries may offer this service.

Not FDIC Insured • May Lose Value • No Bank Guarantee

The Markets in Review

Dear Shareholder,

Investment performance in the 12 months ended September 30, 2019 was a tale of two markets. The first half of the reporting period was characterized by restrictive monetary policy, deteriorating economic growth, equity market volatility, and rising fear of an imminent recession. During the second half of the reporting period, stocks and bonds rebounded sharply, as influential central banks shifted toward accommodative monetary policy, which led to broad-based optimism that a near-term recession could be averted.

After the dust settled, equity and bond markets posted mixed returns while weathering significant volatility. Less volatile U.S. large cap equities and U.S. bonds advanced, while equities at the high end of the risk spectrum — emerging markets, international developed, and U.S. small cap — posted modest negative returns.

Fixed-income securities delivered strong returns with relatively low volatility, as interest rates declined (and bond prices rose). U.S. Treasuries, particularly long-term Treasuries, proved to be an effective ballast for diversified investors. Investment grade and high yield corporate bonds also posted positive returns, as the credit fundamentals in corporate markets remained relatively solid.

In the U.S. equity market, volatility spiked in late 2018, as a wide range of risks were brought to bear on markets, ranging from rising interest rates and slowing global growth to heightened trade tensions and political turmoil. Volatility also rose in emerging markets, as the appreciating U.S. dollar and higher interest rates in the U.S. disrupted economic growth abroad. An economic slowdown in Europe and ongoing uncertainty about Brexit led to negative performance for European equities.

As equity performance faltered and global economic growth slowed, the U.S. Federal Reserve (the “Fed”) shifted to a more patient perspective on the economy in January 2019. The Fed left interest rates unchanged for six months, then reduced interest rates twice thereafter. Following in the Fed’s footsteps, the European Central Bank announced aggressive economic stimulus measures, including lower interest rates and the return of its bond purchasing program. The Bank of Japan signaled a continuation of accommodative monetary policy, while China committed to looser credit conditions and an increase in fiscal spending.

The outpouring of global economic stimulus led to a sharp rally in risk assets throughout the world despite the headwind of rising geopolitical and trade tensions. Hopes continued to remain high as the current economic expansion became the longest in U.S. history. Looking ahead, markets are pricing in additional rate cuts by the Fed over the next year, as investors anticipate a steady shift toward more stimulative monetary policy.

We continue to expect a slowing expansion with additional room to run. Despite a sharp slowdown in trade and manufacturing across the globe, U.S. consumers continued to spend at a relatively healthy pace, benefitting from the lowest unemployment rate in 50 years and rising wages. However, escalating trade tensions and the resulting disruptions in global supply chains are becoming increasingly unpredictable, as are geopolitical tensions in the Middle East.

We believe U.S. equities remain relatively attractive, but we are shifting to a more cautious stance within emerging markets and Asia ex-Japan equities. For bonds, U.S. Treasuries are likely to continue to help buffer against volatility in risk assets, while income from other types of bonds can continue to offer steady returns.

In this environment, investors need to think globally, extend their scope across a broad array of asset classes, and be nimble as market conditions change. We encourage you to talk with your financial advisor and visit blackrock.com for further insight about investing in today’s markets.

Sincerely,

Rob Kapito

President, BlackRock Advisors, LLC

Rob Kapito

President, BlackRock Advisors, LLC

Total Returns as of September 30, 2019
	6-Month	12-Month
U.S. large cap equities (S&P 500® Index)	6.08%	4.25%
U.S. small cap equities (Russell 2000® Index)	(0.36)	(8.89)
International equities (MSCI Europe, Australasia, Far East Index)	2.57	(1.34)
Emerging market equities (MSCI Emerging Markets Index)	(3.66)	(2.02)
3-month Treasury bills (ICE BofAML 3-Month U.S. Treasury Bill Index)	1.20	2.39
U.S. Treasury securities (ICE BofAML 10-Year U.S. Treasury Index)	7.54	15.15
U.S. investment grade bonds (Bloomberg Barclays U.S. Aggregate Bond Index)	5.42	10.30
Tax-exempt municipal bonds (S&P Municipal Bond Index)	3.71	8.19
U.S. high yield bonds (Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index)	3.87	6.35
Past performance is no guarantee 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 Summaries		4
About Fund Performance		13
Disclosure of Expenses		14
The Benefits and Risks of Leveraging		14
Derivative Financial Instruments		14
Financial Statements:
Schedules of Investments		15
Statements of Assets and Liabilities		100
Statements of Operations		103
Statements of Changes in Net Assets		105
Financial Highlights		107
Notes to Financial Statements		129
Report of Independent Registered Public Accounting Firm		151
Important Tax Information		152
Disclosure of Investment Advisory Agreement and Sub-Advisory Agreements		153
Trustee and Officer Information		158
Additional Information		161
Glossary of Terms Used in this Report		163

3

Fund Summary  as of September 30, 2019  BlackRock Core Bond Portfolio

Investment Objective

BlackRock Core Bond Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended September 30, 2019, the Fund’s Institutional and Class K Shares outperformed the benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, while the Fund’s Service, Investor A, Investor C and Class R Shares underperformed.

What factors influenced performance?

During the period, the Fund’s overweight position to investment grade corporate credit led to positive contributions to Fund performance. Exposure to municipal bonds also added to Fund returns. In addition, the Fund’s duration positioning (sensitivity to changes in interest rates) contributed positively as Treasury yields declined over the period. Finally, within securitized assets, allocations to collateralized loan obligations (“CLOs”) and commercial mortgage-backed securities contributed positively to Fund performance.

The Fund’s overweight exposure to agency mortgage-backed securities (“MBS”) and global interest rates exposure under the Fund’s macro-oriented strategy detracted from Fund performance.

Describe recent portfolio activity.

During the fourth quarter of 2018, the Fund’s overweight in duration (sensitivity to interest rate changes) was reduced, while exposure was rotated further out the yield curve. On the view that slowing economic growth and a near-neutral interest rate policy by the Fed should keep U.S. interest rates range-bound in the near term, the Fund added to higher quality spread sectors such as agency MBS, investment grade credits and municipal bonds. Despite broader market weakness during the fourth quarter, securitized assets held up well, and the Fund took profits there.

In the first quarter of 2019, as risk assets rebounded sharply, the Fund’s overweight in duration was modestly increased, while exposure was shifted slightly toward longer-dated issues. Following the aggressive re-pricing of risk assets in late 2018, the investment adviser used the opportunity to add to the Fund’s overweight in investment grade credits. Given the decline in interest rates and pick-up in mortgage prepayment speeds, the Fund shifted to an underweight in agency MBS, while maintaining diversified exposure in securitized assets.

During the third quarter of 2019, the Fund’s duration was increased slightly to a modest overweight versus the benchmark. Globally, the Fund marginally increased allocations in non-U.S. sovereign bonds that should benefit from a more accommodative monetary policy from the European Central Bank (“ECB”). Within spread sectors, the Fund emphasized high quality “carry” assets (i.e., low risk, income-generating assets) given trade uncertainties and the slowdown in global growth. In particular, an overweight position in agency MBS was increased based on attractive valuations. Lastly, the Fund slightly reduced its overweight to investment grade credit in anticipation of heavy issuance in September, while maintaining a preference for high quality, less cyclical names within the sector.

Describe portfolio positioning at period end.

At period end, the Fund was positioned with an overweight in duration versus the benchmark as geopolitical uncertainty continued to pressure interest rates lower. The Fund had non-benchmark exposure to interest rates in European peripheral markets that should benefit from ECB accommodation. In addition, the Fund held an overweight in agency MBS given attractive valuations, as well as elevated demand from banks and other institutions. The Fund maintained an overweight in investment grade credit as well.

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.

4 2 0 1 9   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 September 30, 2019 (continued) BlackRock Core Bond Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

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

^(b)  The Fund normally invests at least 80% of its assets in bonds and maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg Barclays U.S. Aggregate Bond Index (the “benchmark”). On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Core Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  A widely recognized unmanaged market-weighted index, comprised of investment grade corporate bonds rated BBB or better, mortgages and U.S. Treasury and U.S. Government agency issues with at least one year to maturity.

Performance Summary for the Period Ended September 30, 2019

										Average Annual Total Returns (a)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales       charge
Institutional		2.34	%		2.23	%		5.63	%		10.52	%		N/A			3.30	%		N/A			4.16	%		N/A
Service		2.09			1.94			5.39			10.24			N/A			3.01			N/A			3.86			N/A
Investor A		2.01			1.86			5.39			10.24			5.83	%		3.01			2.17	%		3.85			3.43%
Investor C		1.34			1.16			5.01			9.45			8.45			2.24			2.24			3.09			3.09
Class K		2.39			2.35			5.65			10.55			N/A			3.37			N/A			4.26			N/A
Class R		1.84			1.67			5.36			9.95			N/A			2.77			N/A			3.59			N/A
Bloomberg Barclays U.S. Aggregate Bond Index		—			—			5.42			10.30			N/A			3.38			N/A			3.75			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 13 for a detailed description of share classes, including any related sales charges and fees.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

F U N D   S U M M A R Y 5

Fund Summary  as of September 30, 2019 (continued) BlackRock Core Bond Portfolio

Expense Example

	Actual								Hypothetical (a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During   the Period (b)		Expenses Paid During   the Period (c)		Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Ending Account Value (09/30/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,056.30	$	2.32	$	2.22	$	1,000.00	$	1,022.81	$	2.28	$	1,022.91	$	2.18
Service		1,000.00		1,053.90		3.50		3.40		1,000.00		1,021.66		3.45		1,021.76		3.35
Investor A		1,000.00		1,053.90		3.60		3.50		1,000.00		1,021.56		3.55		1,021.66		3.45
Investor C		1,000.00		1,050.10		7.40		7.30		1,000.00		1,017.85		7.28		1,017.95		7.18
Class K		1,000.00		1,056.50		2.06		1.96		1,000.00		1,023.06		2.03		1,023.16		1.93
Class R		1,000.00		1,053.60		4.84		4.74		1,000.00		1,020.36		4.76		1,020.46		4.66

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.45% for Institutional, 0.68% for Service, 0.70% for Investor A, 1.44% for Investor C, 0.40% for Class K and 0.94% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.43% for Institutional, 0.66% for Service, 0.68% for Investor A, 1.42% for Investor C, 0.38% for Class K and 0.92% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 14 for further information on how expenses were calculated.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
U.S. Government Sponsored Agency Obligations	39	%
Corporate Bonds	32
U.S. Treasury Obligations	15
Asset-Backed Securities	6
Non-Agency Mortgage-Backed Securities	3
Municipal Bonds	3
Foreign Government Obligations	2
Foreign Agency Obligations	—	(b)
Capital Trusts	—	(b)
Other Interests	—	(b)

^(a)  Total Investments exclude short-term securities, options purchased and TBA sale commitments.

^(b)  Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION

Credit Rating (a)	Percent of Total Investments	(b)
AAA/Aaa(c)	60	%
AA/Aa	6
A	16
BBB/Baa	17
BB/Ba	—	(d)
B	—	(d)
CCC/Caa	—	(d)
NR	1

^(a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/ Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)  Total Investments exclude short-term securities, options purchased and TBA sale commitments.

^(c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.

^(d)  Represents less than 1% of the Fund’s total investments.

6 2 0 1 9   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 September 30, 2019 BlackRock High Yield Bond Portfolio

Investment Objective

BlackRock High Yield Bond Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended September 30, 2019, the Fund’s Institutional and Class K Shares performed in line with the benchmark, the Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index, while the Fund’s Service, Investor A, Investor C, Investor C1 and Class R Shares underperformed.

What factors influenced performance?

Detractors during the 12-month period included an underweight to BB-rated credits, as BB-rated high yield bonds outperformed B-rated and CCC-rated bonds during the period by a significant margin. Across sectors, underweight positions to home construction and retailers detracted, along with selection in the gaming sector. Tactical equity holdings also weighed on relative results as these idiosyncratic positions underperformed the high yield market.

Conversely, strong security selection across the high yield market represented a key driver of positive relative performance. From a sector perspective, the Fund’s exposures to the technology and pharmaceuticals sectors were among the top contributors to Fund performance. A combination of an underweight and credit selection in the energy sector also was additive. Relative value positions in investment grade credits were positive as well given sharp declines in interest rates that spurred investment grade issues to outperform the high yield market during the 12-month period.

Describe recent portfolio activity.

The Fund saw its overall risk level versus the benchmark decline during the period, but this was largely driven by the energy sector as well as by the higher beta, stressed segment of the market having become more volatile. Given the Fund’s underweight to these issuers, this resulted in an aggregate risk level that was lower than the benchmark. However, excluding energy, the portfolio increased its overall risk level during the period. In terms of bond ratings, the Fund maintained its underweight to BB-rated bonds but reduced this underweight given a more benign interest rate environment. In addition, the Fund increased its overweight to CCC-rated issues slightly, but this was more name specific, and not reflective of a broadly bullish view on lower-rated issuers. The Fund increased its sector exposure to technology, pharmaceuticals and health care high yield bonds, while reducing exposure to energy and gaming. The Fund also continued to reduce its exposure to floating rate loan interests (“bank loans’) given the dovish pivot by the Fed and a view that rate risk would be significantly reduced in the near future.

Describe portfolio positioning at period end.

In a market that saw increasing performance dispersion over the period, the Fund remained focused on specific issuer stories rather than on broad sector themes, although there were particular segments of the market that required greater caution due to either longer-term fundamental concerns or higher sensitivity to slowing global economic activity. Overall, the Fund remained underweight in BB-rated credits. The Fund was also overweight to B-rated issuers and select CCC-rated bonds with improving credit positions, specific catalysts or attractive yields. Importantly, the Fund maintained underweights to the market’s “tails”: both the higher-yielding segment of the market that contains a larger concentration of stressed assets and the lower yielding portion whose spreads are less attractive. By period end, from a sector standpoint, technology, aerospace &defense, and banking were the Fund’s largest overweight positions, while retailers, home construction and media companies were its largest underweights. From an asset allocation perspective, the Fund ended the period with an 8.5% allocation to bank loans, slightly reduced from earlier in the period. The portfolio’s equity positioning was roughly 1.1% at period end, reflecting both common equity positions and futures hedges. The Fund also maintained positions in high yield liquid products (a combination of high yield exchange-traded funds, high yield credit default swaps and total return swaps).

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.

F U N D   S U M M A R Y 7

Fund Summary  as of September 30, 2019 (continued) BlackRock High Yield Bond Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

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

^(b)  The Fund invests primarily in non-investment grade bonds with maturities of ten years or less. The Fund normally invests at least 80% of its assets in high yield bonds. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock High Yield Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  An unmanaged index comprised of issues that meet the following criteria: at least $150 million par value outstanding, maximum credit rating of Ba1, at least one year to maturity, and no issuer represents more than 2 percent of the index.

Performance Summary for the Period Ended September 30, 2019

										Average Annual Total Returns (a)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales     charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales    charge
Institutional		4.87	%		4.86	%		4.64	%		6.34	%		N/A			5.07	%		N/A			8.39	%		N/A
Service		4.61			4.60			4.51			6.06			N/A			4.76			N/A			8.05			N/A
Investor A		4.38			4.38			4.61			6.00			1.76	%		4.74			3.88	%		8.04			7.60%
Investor C		3.86			3.85			4.10			5.25			4.25			3.99			3.99			7.26			7.26
Investor C1		4.04			4.03			4.18			5.39			N/A			4.15			N/A			7.44			N/A
Class K		5.00			4.99			4.70			6.32			N/A			5.16			N/A			8.48			N/A
Class R		4.27			4.26			4.33			5.69			N/A			4.43			N/A			7.71			N/A
Bloomberg Barclays U.S. Corporate High Yield 2% Issuer Capped Index		—			—			3.87			6.35			N/A			5.38			N/A			7.92			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 13 for a detailed description of share classes, including any related sales charges and fees.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

8 2 0 1 9   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 September 30, 2019 (continued) BlackRock High Yield Bond Portfolio

Expense Example

	Actual								Hypothetical (a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During     the Period (b)		Expenses Paid During     the Period (c)		Beginning Account Value (04/01/19)		Ending    Account Value (09/30/19)		Expenses Paid During the Period (b)		Ending Account Value (09/30/19)		Expenses Paid During the Period (c)
Institutional	$	1,000.00	$	1,046.40	$	3.03	$	3.03	$	1,000.00	$	1,022.11	$	2.99	$	1,022.11	$	2.99
Service		1,000.00		1,045.10		4.36		4.36		1,000.00		1,020.81		4.31		1,020.81		4.31
Investor A		1,000.00		1,046.10		4.67		4.67		1,000.00		1,020.51		4.61		1,020.51		4.61
Investor C		1,000.00		1,041.00		8.29		8.29		1,000.00		1,016.95		8.19		1,016.95		8.19
Investor C1		1,000.00		1,041.80		7.58		7.58		1,000.00		1,017.65		7.49		1,017.65		7.49
Class K		1,000.00		1,047.00		2.46		2.46		1,000.00		1,022.66		2.43		1,022.66		2.43
Class R		1,000.00		1,043.30		6.15		6.15		1,000.00		1,019.05		6.07		1,019.05		6.07

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.59% for Institutional, 0.85% for Service, 0.91% for Investor A, 1.62% for Investor C, 1.48% for Investor C1, 0.48% for Class K and 1.20% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.59% for Institutional, 0.85% for Service, 0.91% for Investor A, 1.62% for Investor C, 1.48% for Investor C1, 0.48% for Class K and 1.20% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 14 for further information on how expenses were calculated.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments	(a)
Corporate Bonds	84	%
Floating Rate Loan Interests	9
Investment Companies	3
Preferred Securities	2
Asset-Backed Securities	1
Common Stocks	1
Other Interests	—	(b)
Non-Agency Mortgage-Backed Securities	—	(b)
Foreign Agency Obligations	—	(b)

^(a)  Total Investments exclude short-term securities and options purchased.

^(b)  Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION

Credit Rating (a)	Percent of Total Investments	(b)
AA/Aa	—%	(c)
A	—(c)
BBB/Baa	6
BB/Ba	40
B	39
CCC/Caa	10
NR	5

^(a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)  Total Investments exclude short-term securities and options purchased.

^(c)  Represents less than 1% of the Fund’s total investments.

F U N D   S U M M A R Y 9

Fund Summary  as of September 30, 2019  BlackRock Low Duration Bond Portfolio

Investment Objective

BlackRock Low Duration Bond Portfolio’s (the “Fund”) investment objective is to seek to maximize total return, consistent with income generation and prudent investment management.

Portfolio Management Commentary

How did the Fund perform?

For the 12-month period ended September 30, 2019, the Fund’s Class K Shares matched the return of the benchmark, the ICE BofAML 1-3 Year U.S. Corporate & Government Index, while all of the Fund’s other share classes underperformed the benchmark.

What factors influenced performance?

During the period, the main detractors from Fund performance were its allocations to sovereign bonds and emerging market debt.

Conversely, positive contributions to performance were led by the Fund’s allocations to assets that trade at a yield spread above Treasuries, most notably investment grade corporate bonds. Elsewhere within spread sectors, exposure to securitized assets including commercial mortgage-backed securities (“CMBS”), mortgage-backed securities (“MBS”), asset-backed securities (“ABS”), and collateralized loan obligations (“CLOs”) also added to relative performance. Lastly, exposure to high yield corporate bonds contributed positively to Fund returns.

Describe recent portfolio activity.

Entering the period, the Fund had increased its exposure to investment grade corporate bonds, anticipating that muted new-issue supply would support credit spread tightening by the end of 2018. Instead, prevailing “risk-off” market sentiment and a flurry of negative news within credit issues spurred considerable spread widening during the fourth quarter of 2018. The investment adviser maintained a positive outlook regarding corporate credit entering 2019, on the view that the Fed’s abrupt change to a dovish stance in the face of broad-based signs of a U.S. economic slowdown would support a narrowing of credit spreads.

During the second quarter of 2019, the Fund slightly reduced exposure to corporate bonds and rotated into ABS on the belief that the U.S. consumer remained strong. The Fund also added to its CMBS holdings, as the sector lagged the overall retracement in spreads seen in the first quarter of 2019, making it appear attractive on a relative basis.

Entering the third quarter of 2019, the Fund was positioned with a longer duration (sensitivity to interest rate changes) bias on the increased probability that the Fed would begin easing during the quarter. The Fund continued to reduce exposure to banking issues within corporate credit and to a lesser extent to ABS on valuation concerns, while rotating into agency MBS. The investment adviser believed that agency MBS were attractively valued relative to other spread sectors and positioned the portfolio to benefit from a pickup in demand from banks seeking to maintain their net interest margin. Within corporate credit, the Fund added to its European exposure on the view that this segment should benefit from the European Central Bank’s bond-buying program.

Describe portfolio positioning at period end.

At the end of the reporting period, the Fund was positioned with an overweight to corporate credit and underweights to government sectors such as Treasury, agency and sovereign bonds. The Fund also held non-benchmark allocations to ABS, CMBS and agency MBS. Finally, the Fund was positioned with a marginally longer duration that the benchmark on the belief that the deceleration in economic data should prompt rates to move lower during the fourth quarter absent a conclusive resolution of trade disputes.

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.

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Fund Summary  as of September 30, 2019 (continued) BlackRock Low Duration Bond Portfolio

TOTAL RETURN BASED ON A $10,000 INVESTMENT

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

^(b)  The Fund invests primarily in investment grade bonds and maintains an average portfolio duration that is between 0-3 years. The Fund normally invests at least 80% of its assets in debt securities. On September 17, 2018, the Fund acquired all of the assets, subject to the liabilities, of BlackRock Low Duration Bond Portfolio (the “Predecessor Fund”), a series of BlackRock Funds II, through a tax-free reorganization (the “Reorganization”). The Predecessor Fund is the performance and accounting survivor of the Reorganization.

^(c)  An unmanaged index comprised of investment grade corporate bonds and U.S. Government Agency and U.S. Treasury securities with a maturity ranging from one to three years.

Performance Summary for the Period Ended September 30, 2019

										Average Annual Total Returns (a)
										1 Year						5 Years						10 Years
	Standardized 30-Day Yields			Unsubsidized 30-Day Yields			6-Month Total Returns			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge			w/o sales charge			w/sales charge
Institutional		2.21	%		2.17	%		2.29	%		4.59	%		N/A			1.97	%		N/A			2.73	%		N/A
Service		1.96			1.85			2.17			4.23			N/A			1.66			N/A			2.40			N/A
Investor A		1.92			1.80			2.17			4.23			1.88	%		1.68			1.21	%		2.40			2.17	%
Investor A1		2.11			2.03			2.24			4.38			N/A			1.84			N/A			2.57			N/A
Investor C		1.22			1.12			1.78			3.56			2.56			0.92			0.92			1.66			1.66
Investor C2		1.82			1.75			2.08			4.05			N/A			1.50			N/A			2.26			N/A
Investor C3		1.32			1.11			1.83			3.66			N/A			0.99			N/A			1.67			N/A
Class K		2.26			2.22			2.32			4.65			N/A			2.02			N/A			2.78			N/A
Class R		1.72			1.27			2.04			3.97			N/A			1.40			N/A			2.04			N/A
ICE BofAML 1-3 Year U.S. Corporate & Government Index		—			—			2.20			4.65			N/A			1.60			N/A			1.56			N/A

^(a)  Assuming maximum sales charges, if any. Average annual total returns with and without sales charges reflect reductions for distribution and service fees. See “About Fund Performance” on page 13 for a detailed description of share classes, including any related sales charges and fees, and how performance was calculated for certain classes.

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

Past performance is not indicative of future results.

Performance results may include adjustments made for financial reporting purposes in accordance with U.S. generally accepted accounting principles.

F U N D   S U M M A R Y 11

Fund Summary  as of September 30, 2019 (continued) BlackRock Low Duration Bond Portfolio

Expense Example

	Actual								Hypothetical (a)
					Including interest expense		Excluding interest expense				Including interest expense				Excluding interest expense
	Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Expenses Paid During the Period  (c)		Beginning Account Value (04/01/19)		Ending Account Value (09/30/19)		Expenses Paid During the Period (b)		Ending Account Value (09/30/19)		Expenses Paid During the Period  (c)
Institutional	$	1,000.00	$	1,022.90	$	2.03	$	2.03	$	1,000.00	$	1,023.06	$	2.03	$	1,023.06	$	2.03
Service		1,000.00		1,021.70		3.29		3.29		1,000.00		1,021.81		3.29		1,021.81		3.29
Investor A		1,000.00		1,021.70		3.29		3.29		1,000.00		1,021.81		3.29		1,021.81		3.29
Investor A1		1,000.00		1,022.40		2.53		2.53		1,000.00		1,022.56		2.54		1,022.56		2.54
Investor C		1,000.00		1,017.80		7.08		7.08		1,000.00		1,018.05		7.08		1,018.05		7.08
Investor C2		1,000.00		1,020.80		4.05		4.05		1,000.00		1,021.06		4.05		1,021.06		4.05
Investor C3		1,000.00		1,018.30		6.58		6.58		1,000.00		1,018.55		6.58		1,018.55		6.58
Class K		1,000.00		1,023.20		1.78		1.78		1,000.00		1,023.31		1.78		1,023.31		1.78
Class R		1,000.00		1,020.40		4.56		4.56		1,000.00		1,020.56		4.56		1,020.56		4.56

^(a)  Hypothetical 5% annual return before expenses is calculated by prorating the number of days in the most recent fiscal half year divided by 365.

^(b)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.40% for Institutional, 0.65% for Service, 0.65% for Investor A, 0.50% for Investor A1, 1.40% for Investor C, 0.80% for Investor C2, 1.30% for Investor C3, 0.35% for Class K and 0.90% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

^(c)  For each class of the Fund, expenses are equal to the annualized expense ratio for the class (0.40% for Institutional, 0.65% for Service, 0.65% for Investor A, 0.50% for Investor A1, 1.40% for Investor C, 0.80% for Investor C2, 1.30% for Investor C3, 0.35% for Class K and 0.90% for Class R), multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period shown).

See “Disclosure of Expenses” on page 14 for further information on how expenses were calculated.

Portfolio Information

PORTFOLIO COMPOSITION

Asset Type	Percent of Total Investments (a)
Corporate Bonds		32	%
Asset-Backed Securities		21
U.S. Government Sponsored Agency Securities		18
Non-Agency Mortgage-Backed Securities		14
U.S. Treasury Obligations		12
Investment Companies		2
Foreign Government Obligations		1
Foreign Agency Obligations		—	(b)
Municipal Bonds		—	(b)

^(a)  Total Investments exclude short-term securities and TBA sale commitments.

^(b)  Represents less than 1% of the Fund’s total investments.

CREDIT QUALITY ALLOCATION

Credit Rating (a)	Percent of Total Investments (b)
AAA/Aaa(c)		61	%
AA/Aa		4
A		11
BBB/Baa		20
BB/Ba		—	(d)
B		—	(d)
D		—	(d)
NR		4

^(a)  For financial reporting purposes, credit quality ratings shown above reflect the highest rating assigned by either S&P Global Ratings or Moody’s Investors Service if ratings differ. These rating agencies are independent, nationally recognized statistical rating organizations and are widely used. Investment grade ratings are credit ratings of BBB/ Baa or higher. Below investment grade ratings are credit ratings of BB/Ba or lower. Investments designated NR are not rated by either rating agency. Unrated investments do not necessarily indicate low credit quality. Credit quality ratings are subject to change.

^(b)  Total Investments exclude short-term securities and TBA sale commitments.

^(c)  The investment adviser evaluates the credit quality of unrated investments based upon certain factors including, but not limited to, credit ratings for similar investments and financial analysis of sectors, individual investments and/or issuers. Using this approach, the investment adviser has deemed unrated U.S. Government Sponsored Agency Securities and U.S. Treasury Obligations to be of similar credit quality as investments rated AAA/Aaa.

^(d)  Represents less than 1% of the Fund’s total investments.

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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.

Service Shares are not subject to any sales charge. These shares are subject to a service fee of 0.25% per year (but no distribution fee) and are only available to certain eligible investors.

Investor A Shares are subject to a maximum initial sales charge (front-end load) of 4.00% for all Funds included in this report, except for BlackRock Low Duration Bond Portfolio (“Low Duration Bond”), which is subject to an initial sales charge of 2.25%. These shares are subject to a service fee of 0.25% per year (but no distribution fee). Certain redemptions of these shares may be subject to a contingent deferred sales charge (“CDSC”) where no initial sales charge was paid at the time of purchase. These shares are generally available through financial intermediaries.

Investor A1 Shares (available only in Low Duration Bond) are subject to a maximum initial sales charge (front-end load) of 1.00% and a service fee of 0.10% per year (but no distribution fee). The maximum initial sales charge does not apply to current eligible shareholders of Investor A1 Shares of the Fund. Certain redemption of these shares may be subject to a CDSC where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

Investor C Shares are subject to a 1.00% CDSC if redeemed within one year of purchase. In addition, these shares are subject to a distribution fee of 0.75% per year and a service fee of 0.25% per year. These shares are generally available through financial intermediaries. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C Shares held for approximately ten years will be automatically converted into Investor A Shares.

Investor C1, Investor C2 and Investor C3 Shares (Investor C1 Shares available only in BlackRock High Yield Bond Portfolio (“High Yield Bond”); Investor C2 and Investor C3 Shares available only in Low Duration Bond) are subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders. In addition, these shares are subject to a distribution fee of 0.55%, 0.30% and 0.65% per year, respectively, and a service fee of 0.25%, 0.10% and 0.25% per year, respectively. Prior to July 18, 2011, Low Duration Bond’s Investor C3 Shares performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Investor C3 Shares fees. Effective November 8, 2018, each Fund adopted an automatic conversion feature whereby Investor C1, Investor C2 and Investor C3 Shares held for approximately ten years will be automatically converted into Investor A Shares.

Class R Shares are not subject to any sales charge. These shares are subject to a distribution fee of 0.25% per year and a service fee of 0.25% per year. These shares are available only to certain employer sponsored retirement plans. Prior to July 18, 2011, Low Duration Bond’s Class R Shares performance results are those of Institutional Shares (which have no distribution or service fees) restated to reflect Class R Shares fees.

Investor A1, Investor B1, Investor C1, Investor C2 and Investor C3 Shares of their respective Funds are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans.

Performance information reflects past performance and does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Refer to www.blackrock.com to obtain performance data current to the most recent month end. Performance results do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. Figures shown in the performance tables on the previous pages assume reinvestment of all distributions, if any, at net asset value (“NAV”) on the ex-dividend/payable dates. Investment return and principal value of shares will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Distributions paid to each class of shares will vary because of the different levels of service, distribution and transfer agency fees applicable to each class, which are deducted from the income available to be paid to shareholders.

BlackRock Advisors, LLC (the “Manager”), each Fund’s investment adviser, has contractually and/or voluntarily agreed to waive and/or reimburse a portion of each Fund’s expenses. Without such waiver and/or reimbursement, each Fund’s performance would have been lower. With respect to each Fund’s voluntary waivers, the Manager is under no obligation to waive and/or reimburse or to continue waiving and/or reimbursing its fees and such voluntary waivers may be reduced or discontinued at any time. With respect to each Fund’s contractual waivers, the Manager is under no obligation to continue waiving and/or reimbursing its fees after the applicable termination date of such agreement. See Note 6 of the Notes to Financial Statements for additional information on waivers and/or reimbursements.

The standardized 30-day yield includes the effects of any waivers and/or reimbursements. The unsubsidized 30-day yield excludes the effects of any waivers and/or reimbursements.

A B O U T   F U N D   P E R F O R M A N C E 13

Disclosure of Expenses

Shareholders of each Fund may incur the following charges: (a) transactional expenses, such as sales charges; and (b) operating expenses, including investment advisory fees, administration fees, service and distribution fees, including 12b-1 fees, acquired fund fees and expenses, and other fund expenses. The expense examples on the previous pages (which are based on a hypothetical investment of $1,000 invested on April 1, 2019 and held through September 30, 2019) are intended to assist shareholders both in calculating expenses based on an investment in each Fund and in comparing these expenses with similar costs of investing in other mutual funds.

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

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

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

The Benefits and Risks of Leveraging

The Funds may utilize leverage to seek to enhance returns and NAV. However, there is no guarantee that these objectives can be achieved in all interest rate environments.

The Funds may utilize leverage by entering into reverse repurchase agreements.

In general, the concept of leveraging is based on the premise that the financing cost of leverage, which is based on short-term interest rates, is normally lower than the income earned by each Fund on its longer-term portfolio investments purchased with the proceeds from leverage. To the extent that the total assets of each Fund (including the assets obtained from leverage) are invested in higher-yielding portfolio investments, the Funds’ shareholders benefit from the incremental net income.

The interest earned on securities purchased with the proceeds from leverage is distributed to the Funds’ shareholders, and the value of these portfolio holdings is reflected in the Funds’ per share NAV. However, in order to benefit shareholders, the return on assets purchased with leverage proceeds must exceed the ongoing costs associated with the leverage. If interest and other ongoing costs of leverage exceed a Fund’s return on assets purchased with leverage proceeds, income to shareholders is lower than if the Funds had not used leverage.

Furthermore, the value of each Fund’s portfolio investments generally varies inversely with the direction of long-term interest rates, although other factors can also influence the value of portfolio investments. As a result, changes in interest rates can influence each Fund’s NAV positively or negatively in addition to the impact on each Fund’s performance from leverage. Changes in the direction of interest rates are difficult to predict accurately, and there is no assurance that a Fund’s leveraging strategy will be successful.

The use of leverage also generally causes greater changes in each Fund’s NAV and dividend rates than comparable portfolios without leverage. In a declining market, leverage is likely to cause a greater decline in the NAV of a Fund’s shares than if the Fund were not leveraged. In addition, each Fund may be required to sell portfolio securities at inopportune times or at distressed values in order to comply with regulatory requirements applicable to the use of leverage or as required by the terms of the leverage instruments, which may cause the Funds to incur losses. The use of leverage may limit a Fund’s ability to invest in certain types of securities or use certain types of hedging strategies. Each Fund incurs expenses in connection with the use of leverage, all of which are borne by the Funds’ shareholders and may reduce income.

Derivative Financial Instruments

The Funds may invest in various derivative financial instruments. These instruments are used to obtain exposure to a security, commodity, index, market, and/or other assets without owning or taking physical custody of securities, commodities and/or other referenced assets or to manage market, equity, credit, interest rate, foreign currency exchange rate, commodity and/or other risks. Derivative financial instruments may give rise to a form of economic leverage and involve risks, including the imperfect correlation between the value of a derivative financial instrument and the underlying asset, possible default of the counterparty to the transaction or illiquidity of the instrument. The Funds’ successful use of a derivative financial instrument depends on the investment adviser’s ability to predict pertinent market movements accurately, which cannot be assured. The use of these instruments may result in losses greater than if they had not been used, may limit the amount of appreciation a Fund can realize on an investment and/or may result in lower distributions paid to shareholders. The Funds’ investments in these instruments, if any, are discussed in detail in the Notes to Financial Statements.

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Schedule of Investments September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 6.9%
Adams Mill CLO Ltd., Series 2014-1A, Class A2R, (LIBOR USD 3 Month + 1.10%), 3.40%, 07/15/26(a)(b)	USD		978	$	977,751
Allegro CLO II-S Ltd., Series 2014-1RA, Class A1, (LIBOR USD 3 Month + 1.08%), 3.36%, 10/21/28(a)(b)			1,130		1,127,688
Allegro CLO IV Ltd.(a)(b):
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.45%, 01/15/30			1,460		1,460,386
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.70%), 4.00%, 01/15/30			560		560,215
ALM V Ltd.(a)(b):
Series 2012-5A, Class A2R3, (LIBOR USD 3 Month + 1.25%), 3.55%, 10/18/27			1,000		990,929
Series 2012-5A, Class BR3, (LIBOR USD 3 Month + 1.65%), 3.95%, 10/18/27			610		600,709
ALM VII R Ltd., Series 2013-7RA, Class A1R, (LIBOR USD 3 Month + 1.41%), 3.71%, 10/15/28(a)(b)			690		689,784
ALM XII Ltd.(a)(b):
Series 2015-12A, Class A1R2, (LIBOR USD 3 Month + 0.89%), 3.21%, 04/16/27			266		266,449
Series 2015-12A, Class BR2, (LIBOR USD 3 Month + 1.65%), 3.97%, 04/16/27			1,110		1,104,168
ALM XVI Ltd.(a)(b):
Series 2015-16A, Class A2R2, (LIBOR USD 3 Month + 1.50%), 3.80%, 07/15/27			1,480		1,475,408
Series 2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.20%, 07/15/27			560		552,529
ALM XVIII Ltd., Series 2016-18A, Class A2R, (LIBOR USD 3 Month + 1.65%), 3.95%, 01/15/28(a)(b)			250		249,363
AMMC CLO 16 Ltd., Series 2015-16A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.90%, 04/14/29(a)(b)			250		248,291
AMMC CLO XII Ltd., Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.38%, 11/10/30(a)(b)			500		498,170
AMMC CLO XIII Ltd., Series 2013-13A, Class A1LR, (LIBOR USD 3 Month + 1.26%), 3.54%, 07/24/29(a)(b)			790		792,509
AMMC CLO XIV Ltd., Series 2014-14A, Class A1LR, (LIBOR USD 3 Month + 1.25%), 3.53%, 07/25/29(a)(b)			1,530		1,529,881
Anchorage Capital CLO 1-R Ltd., Series 2018-1RA, Class A1, (LIBOR USD 3 Month + 0.99%), 3.29%, 04/13/31(a)(b)			2,240		2,212,680
Anchorage Capital CLO 3-R Ltd., Series 2014-3RA, Class B, (LIBOR USD 3 Month + 1.50%), 3.76%, 01/28/31(a)(b)			1,040		1,021,142
Anchorage Capital CLO 4-R Ltd., Series 2014-4RA, Class A, (LIBOR USD 3 Month + 1.05%), 3.31%, 01/28/31(a)(b)			920		916,921
Anchorage Capital CLO 5-R Ltd.(a)(b):
Series 2014-5RA, Class B, (LIBOR USD 3 Month + 1.45%), 3.75%, 01/15/30			420		413,342
Series 2014-5RA, Class C, (LIBOR USD 3 Month + 1.85%), 4.15%, 01/15/30			250		246,760
Anchorage Capital CLO 6 Ltd., Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.27%), 3.57%, 07/15/30(a)(b)			580		579,673
Anchorage Capital CLO 7 Ltd.(a)(b):
Series 2015-7A, Class AR, (LIBOR USD 3 Month + 0.96%), 3.26%, 10/15/27			5,890		5,879,991

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2015-7A, Class CR, (LIBOR USD 3 Month + 1.70%), 4.00%, 10/15/27	USD		620	$	613,577
Anchorage Capital CLO 8 Ltd.(a)(b):
Series 2016-8A, Class AR, (LIBOR USD 3 Month + 1.00%), 3.26%, 07/28/28			570		570,287
Series 2016-8A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.86%, 07/28/28			650		647,380
Anchorage Capital CLO Ltd., Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.55%, 10/13/30(a)(b)			670		668,615
Apidos CLO XII, Series 2013-12A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.38%, 04/15/31(a)(b)			4,166		4,145,895
Apidos CLO XV, Series 2013-15A, Class A1RR, (LIBOR USD 3 Month + 1.01%), 3.29%, 04/20/31(a)(b)			500		494,454
Apidos CLO XVI, Series 2013-16A, Class A1R, (LIBOR USD 3 Month + 0.98%), 3.28%, 01/19/25(a)(b)			90		90,030
Apidos CLO XVIII, Series 2018-18A, Class A1, (LIBOR USD 3 Month + 1.14%), 3.42%, 10/22/30(a)(b)			350		348,736
Arbor Realty Commercial Real Estate Notes Ltd., Series 2017-FL2, Class A, (LIBOR USD 1 Month + 0.99%), 3.02%, 08/15/27(a)(b)			450		449,944
Ares XXXVII CLO Ltd., Series 2015-4A, Class A1R, (LIBOR USD 3 Month + 1.17%), 3.47%, 10/15/30(a)(b)			310		309,610
Atrium IX, Series 9A, Class AR, (LIBOR USD 3 Month + 1.24%), 3.38%, 05/28/30(a)(b)			990		990,004
Atrium XII, Series 12A, Class AR, (LIBOR USD 3 Month + 0.83%), 3.11%, 04/22/27(a)(b)			380		380,067
Avery Point IV CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month + 1.10%), 3.38%, 04/25/26(a)(b)			4,292		4,294,724
Avery Point V CLO Ltd.(a)(b):
Series 2014-5A, Class AR, (LIBOR USD 3 Month + 0.98%), 3.28%, 07/17/26			701		700,790
Series 2014-5A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.80%, 07/17/26			650		647,640
Avery Point VI CLO Ltd.(a)(b):
Series 2015-6A, Class AR, (LIBOR USD 3 Month + 1.05%), 3.34%, 08/05/27			900		900,915
Series 2015-6A, Class BR, (LIBOR USD 3 Month + 1.50%), 3.79%, 08/05/27			840		834,287
Avery Point VII CLO Ltd., Series 2015-7A, Class AR, (LIBOR USD 3 Month + 1.14%), 3.44%, 01/15/28(a)(b)			1,650		1,649,918
B2R Mortgage Trust, Series 2015-2, Class A, 3.34%, 11/15/48(b)			127		126,791
Babson CLO Ltd., Series 2015-IA, Class BR, (LIBOR USD 3 Month + 1.40%), 3.68%, 01/20/31(a)(b)			250		244,030
Bain Capital Credit CLO Ltd., Series 2018-2A, Class A1, (LIBOR USD 3 Month + 1.08%), 3.38%, 07/19/31(a)(b)			330		327,246
Barings CLO Ltd., Series 2018-3A, Class A1, (LIBOR USD 3 Month + 0.95%), 3.23%, 07/20/29(a)(b)			270		269,817
Battalion CLO VII Ltd., Series 2014-7A, Class A1RR, (LIBOR USD 3 Month + 1.04%), 3.34%, 07/17/28(a)(b)			800		797,969
Battalion CLO X Ltd., Series 2016-10A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.53%, 01/24/29(a)(b)			4,880		4,889,985

S C H E D U L E S   O F   I N V E S T M E N T S 15

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
BDS Ltd., Series 2019-FL3, Class A, (LIBOR USD 1 Month + 1.40%), 3.42%, 12/15/35(a)(b)	USD		1,080	$	1,082,333
Benefit Street Partners CLO II Ltd., Series 2013-IIA, Class A2R, (LIBOR USD 3 Month + 1.75%), 4.05%, 07/15/29(a)(b)			650		647,848
Benefit Street Partners CLO V-B Ltd., Series 2018-5BA, Class A1A, (LIBOR USD 3 Month + 1.09%), 3.37%, 04/20/31(a)(b)			360		357,774
Benefit Street Partners CLO VII Ltd., Series 2015-VIIA, Class A1AR, (LIBOR USD 3 Month + 0.78%), 3.08%, 07/18/27(a)(b)			670		670,073
Black Diamond CLO Ltd., Series 2013-1A, Class A2R, (LIBOR USD 3 Month + 1.45%), 3.75%, 02/06/26(a)(b)			500		499,933
BlueMountain CLO Ltd.(a)(b):
Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.23%), 3.51%, 01/20/29			1,360		1,361,107
Series 2013-2A, Class A1R, (LIBOR USD 3 Month + 1.18%), 3.46%, 10/22/30			1,770		1,768,422
Series 2015-3A, Class A1R, (LIBOR USD 3 Month + 1.00%), 3.28%, 04/20/31			250		248,397
Carlyle Global Market Strategies CLO Ltd.(a)(b):
Series 2014-1A, Class A1R2, (LIBOR USD 3 Month + 0.97%), 3.27%, 04/17/31			800		791,612
Series 2014-3RA, Class A1A, (LIBOR USD 3 Month + 1.05%), 3.31%, 07/27/31			3,360		3,338,991
Series 2015-3A, Class A2R, (LIBOR USD 3 Month + 1.60%), 3.86%, 07/28/28			530		529,778
Carlyle US CLO Ltd., Series 2016-4A, Class A2R, (LIBOR USD 3 Month + 1.45%), 3.73%, 10/20/27(a)(b)			250		247,307
CBAM Ltd.(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.53%, 07/20/30			1,600		1,594,404
Series 2017-2A, Class B1, (LIBOR USD 3 Month + 1.75%), 4.05%, 10/17/29			810		808,522
CDO Repack SPC Ltd., Series 2006-CLF1, Class D1, 7.11%, 05/20/30(b)			500		532,015
Cedar Funding II CLO Ltd., Series 2013-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 3.85%, 06/09/30(a)(b)			550		547,953
Cedar Funding VI CLO Ltd., Series 2016-6A, Class AR, (LIBOR USD 3 Month + 1.09%), 3.37%, 10/20/28(a)(b)			2,980		2,976,167
Cedar Funding VIII CLO Ltd.(a)(b):
Series 2017-8A, Class A1, (LIBOR USD 3 Month + 1.25%), 3.55%, 10/17/30			4,530		4,529,125
Series 2017-8A, Class B, (LIBOR USD 3 Month + 1.70%), 4.00%, 10/17/30			750		741,381
Series 2017-8A, Class C, (LIBOR USD 3 Month + 2.25%), 4.55%, 10/17/30			250		244,889
Cent CLO 17 Ltd., Series C17A, Class A1AR, (LIBOR USD 3 Month + 1.03%), 3.30%, 04/30/31(a)(b)			1,860		1,841,952
Cent CLO 24 Ltd., Series 2015-24A, Class A1R, (LIBOR USD 3 Month + 1.07%), 3.37%, 10/15/26(a)(b)			920		919,792
CIFC Funding Ltd.(a)(b):
Series 2014-4RA, Class A1A, (LIBOR USD 3 Month + 1.13%), 3.43%, 10/17/30			6,450		6,443,657
Series 2017-1A, Class B, (LIBOR USD 3 Month + 1.70%), 3.98%, 04/23/29			340		338,796
Series 2018-1A, Class A, (LIBOR USD 3 Month + 1.00%), 3.30%, 04/18/31			1,230		1,216,962

Security		Par (000)		Value
Asset-Backed Securities (continued)
Cloud Pass-Through Trust, Series 2019-1A, Class CLOU, 3.55%, 12/05/22(b)(c)	USD		1,949	$	1,973,658
Cumberland Park CLO Ltd., Series 2015-2A, Class CR, (LIBOR USD 3 Month + 1.80%), 4.08%, 07/20/28(a)(b)			310		304,497
Deer Creek CLO Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.18%), 3.46%, 10/20/30(a)(b)			500		496,569
Dryden 43 Senior Loan Fund, Series 2016-43A, Class AR, (LIBOR USD 3 Month + 1.14%), 3.42%, 07/20/29(a)(b)			1,590		1,590,873
Dryden 53 CLO Ltd., Series 2017-53A, Class A, (LIBOR USD 3 Month + 1.12%), 3.42%, 01/15/31(a)(b)			4,900		4,881,086
Dryden XXV Senior Loan Fund, Series 2012-25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 3.20%, 10/15/27(a)(b)			3,240		3,240,094
Dryden XXVI Senior Loan Fund, Series 2013-26A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.20%, 04/15/29(a)(b)			330		329,556
Dryden XXVIII Senior Loan Fund, Series 2013-28A, Class A1LR, (LIBOR USD 3 Month + 1.20%), 3.36%, 08/15/30(a)(b)			1,660		1,660,517
Eaton Vance CLO Ltd.(a)(b):
Series 2013-1A, Class A1RR, (LIBOR USD 3 Month + 1.16%), 3.38%, 01/15/28			270		270,196
Series 2013-1A, Class A2RR, (LIBOR USD 3 Month + 1.85%), 4.07%, 01/15/28			250		250,124
Elm CLO Ltd.(a)(b):
Series 2014-1A, Class ARR, (LIBOR USD 3 Month + 1.17%), 3.47%, 01/17/29			5,500		5,506,273
Series 2014-1A, Class BRR, (LIBOR USD 3 Month + 1.75%), 4.05%, 01/17/29			470		469,874
Flatiron CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 0.89%), 3.19%, 04/15/27(a)(b)			739		738,830
Galaxy XXIII CLO Ltd., Series 2017-23A, Class A, (LIBOR USD 3 Month + 1.28%), 3.56%, 04/24/29(a)(b)			577		577,009
Galaxy XXIX CLO Ltd.(a)(b):
Series 2018-29A, Class B, (LIBOR USD 3 Month + 1.40%), 3.56%, 11/15/26			250		248,419
Series 2018-29A, Class C, (LIBOR USD 3 Month + 1.68%), 3.84%, 11/15/26			350		347,097
GoldenTree Loan Opportunities IX Ltd., Series 2014-9A, Class AR2, (LIBOR USD 3 Month + 1.11%), 3.37%, 10/29/29(a)(b)			420		419,210
GSAA Home Equity Trust, Series 2006-5, Class 2A1, (LIBOR USD 1 Month + 0.07%), 2.09%, 03/25/36(a)			583		281,756
Halcyon Loan Advisors Funding Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.36%, 07/25/27(a)(b)			5,000		4,994,513
Highbridge Loan Management Ltd.(a)(b):
Series 12A-18, Class A1B, (LIBOR USD 3 Month + 1.25%), 3.55%, 07/18/31			250		249,283
Series 6A-2015, Class A1R, (LIBOR USD 3 Month + 1.00%), 3.29%, 02/05/31			3,030		3,000,839
Home Partners of America Trust, Series 2016-2, Class A, (LIBOR USD 1 Month + 1.15%), 3.17%, 10/17/33(a)(b)			171		170,953
HPS Loan Management Ltd., Series 10A-16, Class A1R, (LIBOR USD 3 Month + 1.14%), 3.28%, 01/20/28(a)(b)			970		969,206

16 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
ICG US CLO Ltd., Series 2015-1A, Class A1R, (LIBOR USD 3 Month + 1.14%), 3.44%, 10/19/28(a)(b)	USD		865	$	863,243
Invitation Homes Trust, Series 2018-SFR3, Class A, (LIBOR USD 1 Month + 1.00%), 3.02%, 07/17/37(a)(b)			664		663,272
LCM XXI LP, Series 21A, Class AR, (LIBOR USD 3 Month + 0.88%), 3.16%, 04/20/28(a)(b)			820		816,809
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month + 1.13%), 3.16%, 05/15/28(a)(b)			1,810		1,811,354
Madison Park Funding X Ltd., Series 2012-10A, Class AR2, (LIBOR USD 3 Month + 1.22%), 3.50%, 01/20/29(a)(b)			1,700		1,699,950
Madison Park Funding XI Ltd., Series 2013- 11A, Class AR, (LIBOR USD 3 Month + 1.16%), 3.42%, 07/23/29(a)(b)			2,000		2,002,464
Madison Park Funding XIII Ltd., Series 2014- 13A, Class AR2, (LIBOR USD 3 Month + 0.95%), 3.25%, 04/19/30(a)(b)			1,090		1,088,627
Madison Park Funding XIX Ltd., Series 2015- 19A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.53%, 01/22/28(a)(b)			1,160		1,159,971
Madison Park Funding XXVI Ltd., Series 2017- 26A, Class AR, (LIBOR USD 3 Month + 1.20%), 3.46%, 07/29/30(a)(b)			1,665		1,666,108
Marathon CRE Ltd., Series 2018-FL1, Class A, (LIBOR USD 1 Month + 1.15%), 3.18%, 06/15/28(a)(b)			420		420,085
Marble Point CLO XI Ltd., Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.18%), 3.48%, 12/18/30(a)(b)			430		428,301
MidOcean Credit CLO III, Series 2014-3A, Class A3A2, (LIBOR USD 3 Month + 0.97%), 3.25%, 04/21/31(a)(b)			480		472,292
Mid-State Trust VII, Series 7, Class A, 6.34%, 12/15/36			1,376		1,458,396
Mountain Hawk II CLO Ltd., Series 2013-2A, Class BR, (LIBOR USD 3 Month + 1.60%), 3.88%, 07/20/24(a)(b)			931		931,128
MP CLO III Ltd., Series 2013-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 3.53%, 10/20/30(a)(b)			830		827,924
MP CLO VIII Ltd.(a)(b):
Series 2015-2A, Class AR, (LIBOR USD 3 Month + 0.91%), 3.17%, 10/28/27			1,420		1,420,029
Series 2015-2A, Class BR, (LIBOR USD 3 Month + 1.42%), 3.68%, 10/28/27			1,500		1,486,023
Navient Private Education Loan Trust, Series 2014-CTA, Class B, (LIBOR USD 1 Month + 1.75%), 3.78%, 10/17/44(a)(b)			895		904,113
Neuberger Berman Loan Advisers CLO Ltd., Series 2017-26A, Class A, (LIBOR USD 3 Month + 1.17%), 3.47%, 10/18/30(a)(b)			1,430		1,427,514
Oaktree CLO Ltd., Series 2015-1A, Class A1R, (LIBOR USD 3 Month + 0.87%), 3.15%, 10/20/27(a)(b)			500		499,708
OCP CLO Ltd.(a)(b):
Series 2014-5A, Class A1R, (LIBOR USD 3 Month + 1.08%), 3.35%, 04/26/31			140		138,770
Series 2015-10A, Class BR, (LIBOR USD 3 Month + 1.85%), 4.12%, 10/26/27			380		377,664
Series 2017-13A, Class A1A, (LIBOR USD 3 Month + 1.26%), 3.56%, 07/15/30			2,610		2,611,259

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2017-14A, Class B, (LIBOR USD 3 Month + 1.95%), 4.09%, 11/20/30	USD		250	$	243,568
Octagon Investment Partners Ltd., Series 2018-18A, Class A1A, (LIBOR USD 3 Month + 0.96%), 3.28%, 04/16/31(a)(b)			1,780		1,759,870
Octagon Investment Partners XVI Ltd., Series 2013-1A, Class A1R, (LIBOR USD 3 Month + 1.02%), 3.32%, 07/17/30(a)(b)			2,755		2,720,356
Octagon Investment Partners XVII Ltd., Series 2013-1A, Class A1R2, (LIBOR USD 3 Month + 1.00%), 3.28%, 01/25/31(a)(b)			2,390		2,374,700
Octagon Investment Partners XXIII Ltd., Series 2015-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.15%, 07/15/27(a)(b)			370		363,539
OFSI Fund VI Ltd., Series 2014-6A, Class A2R, (LIBOR USD 3 Month + 1.13%), 3.43%, 03/20/25(a)(b)			2,460		2,456,557
OFSI Fund VII Ltd., Series 2014-7A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.20%, 10/18/26(a)(b)			489		488,293
OHA Credit Partners IX Ltd., Series 2013-9A, Class A1R, (LIBOR USD 3 Month + 1.01%), 3.29%, 10/20/25(a)(b)			70		70,426
OHA Loan Funding Ltd., Series 2013-2A, Class AR, (LIBOR USD 3 Month + 1.04%), 3.19%, 05/23/31(a)(b)			4,495		4,474,162
OneMain Financial Issuance Trust, Series 2019-2A, Class A, 3.14%, 10/14/36(b)			3,140		3,168,740
OZLM Funding IV Ltd., Series 2013-4A, Class A1R, (LIBOR USD 3 Month + 1.25%), 3.53%, 10/22/30(a)(b)			9,195		9,142,833
OZLM Ltd., Series 2019-24A, Class A2A, (LIBOR USD 3 Month + 2.25%), 4.41%, 07/20/32(a)(b)			250		249,798
OZLM VIII Ltd., Series 2014-8A, Class BRR, (LIBOR USD 3 Month + 2.20%), 4.50%, 10/17/29(a)(b)			340		332,234
OZLM XIV Ltd., Series 2015-14A, Class A2AR, (LIBOR USD 3 Month + 1.70%), 4.00%, 01/15/29(a)(b)			2,110		2,098,020
Palmer Square CLO Ltd.(a)(b):
Series 2015-1A, Class A1R2, (LIBOR USD 3 Month + 1.22%), 3.37%, 05/21/29			2,420		2,419,426
Series 2015-1A, Class A2R2, (LIBOR USD 3 Month + 1.65%), 3.80%, 05/21/29			530		529,821
Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.33%, 04/18/31			850		844,298
Series 2018-2A, Class A1A, (LIBOR USD 3 Month + 1.10%), 3.42%, 07/16/31			1,070		1,062,313
Series 2018-3A, Class A2, (LIBOR USD 3 Month + 1.35%), 3.51%, 08/15/26			776		772,899
Palmer Square Loan Funding Ltd.(a)(b):
Series 2017-1A, Class A2, (LIBOR USD 3 Month + 1.30%), 3.60%, 10/15/25			1,760		1,753,968
Series 2018-4A, Class A1, (LIBOR USD 3 Month + 0.90%), 3.06%, 11/15/26			551		550,305
Series 2019-3A, Class A2, (LIBOR USD 3 Month + 1.60%), 3.79%, 08/20/27			440		439,550
Parallel Ltd., Series 2017-1A, Class B, (LIBOR USD 3 Month + 1.70%), 3.98%, 07/20/29(a)(b)			500		495,521
Park Avenue Institutional Advisers CLO Ltd.(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month + 1.22%), 3.40%, 11/14/29			1,870		1,865,590
Series 2017-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 3.88%, 11/14/29			780		776,817

S C H E D U L E S   O F   I N V E S T M E N T S 17

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Progress Residential Trust, Series 2017-SFR1, Class A, 2.77%, 08/17/34(b)	USD		737	$	739,285
Race Point IX CLO Ltd., Series 2015-9A, Class A1AR, (LIBOR USD 3 Month + 1.21%), 3.51%, 10/15/30(a)(b)			720		719,999
Regatta VI Funding Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.36%, 07/20/28(a)(b)			2,360		2,356,029
Riserva CLO Ltd., Series 2016-3A, Class AR, (LIBOR USD 3 Month + 1.14%), 3.44%, 10/18/28(a)(b)			1,040		1,039,916
Rockford Tower CLO Ltd.(a)(b):
Series 2017-2A, Class B, (LIBOR USD 3 Month + 1.75%), 4.05%, 10/15/29			860		854,142
Series 2017-3A, Class A, (LIBOR USD 3 Month + 1.19%), 3.47%, 10/20/30			2,090		2,085,974
Romark WM-R Ltd., Series 2018-1A, Class A1, (LIBOR USD 3 Month + 1.03%), 3.31%, 04/20/31(a)(b)			720		712,187
RR 3 Ltd., Series 2018-3A, Class A1R2, (LIBOR USD 3 Month + 1.09%), 3.39%, 01/15/30(a)(b)			670		665,410
RR 6 Ltd., Series 2019-6A, Class A1A, (LIBOR USD 3 Month + 1.25%), 3.63%, 04/15/30(a)(b)			2,140		2,139,951
Silver Creek CLO Ltd., Series 2014-1A, Class CR, (LIBOR USD 3 Month + 2.30%), 4.58%, 07/20/30(a)(b)			500		494,555
SLM Private Credit Student Loan Trust, Series 2004-B, Class A3, (LIBOR USD 3 Month + 0.33%), 2.45%, 03/15/24(a)			1,030		1,024,408
SLM Private Education Loan Trust, Series 2011-C, Class A2A, (LIBOR USD 1 Month + 3.25%), 5.28%, 10/17/44(a)(b)			199		199,566
SMB Private Education Loan Trust, Series 2015-B, Class B, 3.50%, 12/17/40(b)			990		1,016,302
Sound Point CLO XIV Ltd., Series 2016-3A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.30%, 01/23/29(a)(b)			1,000		1,003,253
Sound Point CLO XV Ltd., Series 2017-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.25%, 01/23/29(a)(b)			280		280,000
Sound Point CLO XXIII Ltd., Series 2019-2A, Class A1, (LIBOR USD 3 Month + 1.40%), 3.88%, 04/15/32(a)(b)			4,180		4,177,191
Steele Creek CLO Ltd., Series 2017-1A, Class A, (LIBOR USD 3 Month + 1.25%), 3.55%, 01/15/30(a)(b)			1,070		1,066,745
Symphony CLO XVII Ltd., Series 2016-17A, Class AR, (LIBOR USD 3 Month + 0.88%), 3.18%, 04/15/28(a)(b)			880		876,079
Symphony CLO XVIII Ltd., Series 2016-18A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.41%, 01/23/28(a)(b)			900		900,482
THL Credit Wind River CLO Ltd.(a)(b):
Series 2012-1A, Class BR2, (LIBOR USD 3 Month + 1.45%), 3.75%, 01/15/26			280		279,569
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.05%), 3.35%, 07/15/28			1,120		1,118,616
TIAA CLO III Ltd., Series 2017-2A, Class A, (LIBOR USD 3 Month + 1.15%), 3.47%, 01/16/31(a)(b)			910		902,180
TICP CLO VI Ltd., Series 2016-6A, Class BR, (LIBOR USD 3 Month + 1.70%), 4.00%, 01/15/29(a)(b)			1,190		1,185,817

Security		Par (000)		Value
Asset-Backed Securities (continued)
Towd Point Mortgage Trust(b)(c):
Series 2019-SJ2, Class A2, 4.25%, 11/25/58	USD		3,000	$	3,092,976
Series 2019-SJ2, Class M1, 4.50%, 11/25/58			3,000		3,128,017
Union Pacific Railroad Co. Pass-Through Trust, Series 2014-1, 3.23%, 05/14/26			1,425		1,488,589
Venture 35 CLO Ltd., Series 2018-35A, Class AS, (LIBOR USD 3 Month + 1.15%), 3.43%, 10/22/31(a)(b)			660		659,295
Venture CLO 32 Ltd., Series 2018-32A, Class A2A, (LIBOR USD 3 Month + 1.07%), 3.37%, 07/18/31(a)(b)			350		347,052
Venture XVIII CLO Ltd., Series 2014-18A, Class AR, (LIBOR USD 3 Month + 1.22%), 3.52%, 10/15/29(a)(b)			3,230		3,235,905
Voya CLO Ltd.(a)(b):
Series 2017-4A, Class A1, (LIBOR USD 3 Month + 1.13%), 3.43%, 10/15/30			1,680		1,677,136
Series 2019-1A, Class A, (LIBOR USD 3 Month + 1.17%), 3.81%, 04/15/29			2,240		2,239,961
Westcott Park CLO Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.21%), 3.49%, 07/20/28(a)(b)			1,210		1,212,983
York CLO 2 Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month + 1.15%), 3.43%, 01/22/31(a)(b)			1,250		1,242,909
York CLO 4 Ltd., Series 2016-2A, Class A, (LIBOR USD 3 Month + 1.63%), 3.91%, 01/20/30(a)(b)			700		701,397
York CLO-3 Ltd.(a)(b):
Series 2016-1A, Class AR, (LIBOR USD 3 Month + 1.25%), 3.53%, 10/20/29			520		519,609
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.75%), 4.03%, 10/20/29			930		924,146
Total Asset-Backed Securities — 6.9% (Cost: $230,579,306)					229,973,311
Corporate Bonds — 39.5%
Aerospace & Defense — 1.8%
Airbus SE, 3.95%, 04/10/47(b)			1,230		1,424,911
Arconic, Inc., 5.40%, 04/15/21			2,830		2,927,734
BAE Systems Holdings, Inc.(b):
2.85%, 12/15/20			728		730,725
3.80%, 10/07/24			204		214,247
3.85%, 12/15/25			1,827		1,920,982
4.75%, 10/07/44			87		102,014
Boeing Co. (The):
3.25%, 02/01/35			258		267,344
3.38%, 06/15/46			163		163,507
3.85%, 11/01/48			569		619,632
3.83%, 03/01/59			698		744,110
General Dynamics Corp., 3.75%, 05/15/28			788		877,000
L3Harris Technologies, Inc.:
2.70%, 04/27/20			522		523,045
3.85%, 06/15/23(b)			3,725		3,923,709
3.95%, 05/28/24(b)			725		769,353
3.83%, 04/27/25			109		116,407
3.85%, 12/15/26(b)			3,200		3,437,510
4.40%, 06/15/28			2,646		2,972,628
4.40%, 06/15/28(b)			415		466,228
4.85%, 04/27/35			82		97,077
5.05%, 04/27/45			1,045		1,311,163
Lockheed Martin Corp.:
3.10%, 01/15/23			438		451,562
2.90%, 03/01/25			520		538,358

18 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Aerospace & Defense (continued)
3.55%, 01/15/26	USD		229	$	245,517
3.60%, 03/01/35			4,330		4,680,909
4.50%, 05/15/36			480		576,420
3.80%, 03/01/45			164		182,675
Northrop Grumman Corp.:
2.93%, 01/15/25			2,904		2,993,569
3.25%, 01/15/28			3,411		3,579,836
3.85%, 04/15/45			803		885,379
4.03%, 10/15/47			357		404,920
Raytheon Co.:
3.15%, 12/15/24			291		305,810
7.20%, 08/15/27			630		840,939
7.00%, 11/01/28			2,010		2,662,319
4.20%, 12/15/44			590		700,684
Rolls-Royce plc, 2.13%, 06/18/21	EUR		249		281,153
Textron, Inc.:
3.65%, 03/15/27	USD		845		881,705
3.90%, 09/17/29			1,562		1,672,472
United Technologies Corp.:
3.35%, 08/16/21			180		184,649
1.95%, 11/01/21			3,290		3,287,409
3.65%, 08/16/23			65		68,785
1.15%, 05/18/24	EUR		1,065		1,208,689
3.95%, 08/16/25	USD		56		61,351
3.13%, 05/04/27			11		11,527
4.13%, 11/16/28			3,382		3,826,347
5.40%, 05/01/35			515		658,069
6.13%, 07/15/38			1,138		1,564,101
4.50%, 06/01/42			2,196		2,629,814
					58,994,294
Air Freight & Logistics — 0.1%
FedEx Corp.:
0.45%, 08/05/25	EUR		1,050		1,145,228
3.30%, 03/15/27	USD		62		63,579
3.90%, 02/01/35			500		511,543
3.88%, 08/01/42			1,219		1,177,339
United Parcel Service, Inc.:
3.40%, 03/15/29			929		994,095
2.50%, 09/01/29			891		887,588
4.25%, 03/15/49			81		93,583
					4,872,955
Airlines — 0.9%
Air Canada Pass-Through Trust(b):
Series 2015-2, Class B, 5.00%, 12/15/23			439		458,655
Series 2017-1, Class B, 3.70%, 01/15/26			9		9,040
Series 2017-1, Class AA, 3.30%, 01/15/30			482		497,086
American Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.38%, 10/01/22			19		19,316
Series 2015-1, Class B, 3.70%, 05/01/23			253		255,104
Series 2015-2, Class B, 4.40%, 09/22/23			1,956		2,022,371
Series 2016-1, Class B, 5.25%, 01/15/24			635		675,335
Series 2016-2, Class B, 4.38%, 06/15/24(b)			837		861,859
Series 2017-1, Class B, 4.95%, 02/15/25			692		729,783
Series 2017-2, Class B, 3.70%, 10/15/25			431		433,853
Series 2016-3, Class B, 3.75%, 10/15/25			21		21,145
Series 2015-2, Class AA, 3.60%, 09/22/27			351		368,247
Series 2019-1, Class B, 3.85%, 02/15/28			1,230		1,242,387
Series 2016-2, Class AA, 3.20%, 06/15/28			496		509,338
Series 2016-3, Class AA, 3.00%, 10/15/28			1,047		1,066,034
Series 2017-1, Class AA, 3.65%, 02/15/29			397		421,809
Series 2017-2, Class AA, 3.35%, 10/15/29			529		544,313
Series 2019-1, Class AA, 3.15%, 02/15/32			1,135		1,165,772
Continental Airlines Pass-Through Trust, Series 2012-1, Class B, 6.25%, 04/11/20			12		12,095

Security		Par (000)		Value
Airlines (continued)
Delta Air Lines Pass-Through Trust, Series 2019-1, Class AA, 3.20%, 04/25/24	USD		990	$	1,034,255
Delta Air Lines, Inc.:
2.88%, 03/13/20			11,781		11,806,152
2.60%, 12/04/20			30		30,053
United Airlines Pass-Through Trust:
Series 2014-1, Class B, 4.75%, 04/11/22			21		21,244
Series 2014-2, Class B, 4.63%, 09/03/22			170		175,675
Series 2016-2, Class B, 3.65%, 10/07/25			104		104,734
Series 2016-1, Class B, 3.65%, 01/07/26			139		141,692
Series 2018-1, Class B, 4.60%, 03/01/26			547		569,877
Series 2015-1, Class AA, 3.45%, 12/01/27			252		262,826
Series 2019-2, Class B, 3.50%, 05/01/28			901		902,486
Series 2016-1, Class AA, 3.10%, 07/07/28			61		62,279
Series 2016-2, Class AA, 2.88%, 10/07/28			504		509,415
Series 2018-1, Class AA, 3.50%, 03/01/30			613		641,372
Series 2019-2, Class AA, 2.70%, 05/01/32			885		882,555
US Airways Pass-Through Trust:
Series 2012-2, Class B, 6.75%, 06/03/21			35		36,753
Series 2013-1, Class B, 5.38%, 11/15/21			146		152,348
					28,647,258
Auto Components — 0.0%
Lear Corp., 5.25%, 05/15/49			85		87,432
Automobiles — 0.5%
Daimler Finance North America LLC(b):
3.10%, 05/04/20			2,575		2,589,885
2.30%, 02/12/21			3,005		3,007,324
3.35%, 05/04/21			3,060		3,110,410
General Motors Co.:
5.00%, 04/01/35			74		74,277
6.60%, 04/01/36			630		721,814
6.25%, 10/02/43			645		706,618
5.40%, 04/01/48			99		99,167
Hyundai Capital America(b):
2.55%, 04/03/20			7,145		7,160,630
3.95%, 02/01/22			290		297,798
Toyota Motor Corp., 2.76%, 07/02/29			46		47,570
					17,815,493
Banks — 8.6%
ABN AMRO Bank NV, 2.65%, 01/19/21(b)			2,120		2,129,391
Australia & New Zealand Banking Group Ltd., 2.63%, 11/09/22			790		803,385
Banco Internacional del Peru SAA Interbank, 3.25%, 10/04/26(b)			360		359,550
Banco Santander SA:
3.85%, 04/12/23			400		416,837
2.71%, 06/27/24			1,600		1,617,563
3.31%, 06/27/29			1,800		1,859,635
Bank of America Corp.:
(LIBOR USD 3 Month + 0.66%), 2.37%, 07/21/21(a)			1,170		1,171,846
(LIBOR USD 3 Month + 0.63%), 2.33%, 10/01/21(a)			13,138		13,152,725
(LIBOR USD 3 Month + 0.37%), 2.74%, 01/23/22(a)			320		321,812
(LIBOR USD 3 Month + 0.63%), 3.50%, 05/17/22(a)			434		442,610
3.30%, 01/11/23			1,327		1,371,014
(LIBOR USD 3 Month + 0.93%), 2.82%, 07/21/23(a)			1,285		1,304,528
4.00%, 04/01/24			17		18,223
(LIBOR USD 3 Month + 0.94%), 3.86%, 07/23/24(a)			201		211,739
4.20%, 08/26/24			336		360,392

S C H E D U L E S   O F   I N V E S T M E N T S 19

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
4.00%, 01/22/25	USD		140	$	148,657
(LIBOR USD 3 Month + 0.97%), 3.46%, 03/15/25(a)			1,319		1,374,536
Series L, 3.95%, 04/21/25			18		19,075
3.88%, 08/01/25			93		100,236
(LIBOR USD 3 Month + 0.81%), 3.37%, 01/23/26(a)			241		250,673
4.45%, 03/03/26			3,076		3,352,194
3.50%, 04/19/26			657		697,520
4.25%, 10/22/26			18		19,435
(LIBOR USD 3 Month + 1.06%), 3.56%, 04/23/27(a)			9		9,493
Series L, 4.18%, 11/25/27			63		68,009
(LIBOR USD 3 Month + 1.58%), 3.82%, 01/20/28(a)			1,260		1,352,539
Series FF, (LIBOR USD 3 Month + 2.93%), 5.87%(a)(d)			1,550		1,674,000
(LIBOR USD 3 Month + 1.51%), 3.71%, 04/24/28(a)			7,744		8,236,358
(LIBOR USD 3 Month + 1.37%), 3.59%, 07/21/28(a)			365		385,353
(LIBOR USD 3 Month + 1.04%), 3.42%, 12/20/28(a)			7,982		8,336,408
(LIBOR USD 3 Month + 1.07%), 3.97%, 03/05/29(a)			3,087		3,344,784
(LIBOR USD 3 Month + 1.31%), 4.27%, 07/23/29(a)			79		87,878
(LIBOR USD 3 Month + 1.21%), 3.97%, 02/07/30(a)			541		591,212
(LIBOR USD 3 Month + 1.18%), 3.19%, 07/23/30(a)			238		245,454
Series L, 4.75%, 04/21/45			20		24,074
Bank of Montreal:
3.10%, 07/13/20			45		45,388
Series D, 3.10%, 04/13/21			293		298,025
1.90%, 08/27/21			35		34,948
2.90%, 03/26/22			451		459,665
Series E, 3.30%, 02/05/24			313		325,705
2.50%, 06/28/24			192		194,037
Banque Federative du Credit Mutuel SA:
0.13%, 02/05/24	EUR		1,100		1,203,861
0.75%, 06/08/26			400		451,119
Barclays plc:
(LIBOR USD 3 Month + 1.90%), 4.97%, 05/16/29(a)	USD		2,200		2,413,481
5.25%, 08/17/45			270		304,463
4.95%, 01/10/47			1,035		1,136,107
BNP Paribas SA:
(USD Swap Semi 5 Year + 6.31%), 7.63%(a)(b)(d)			1,705		1,796,644
3.50%, 03/01/23(b)			3,440		3,550,570
(LIBOR USD 3 Month + 2.24%), 4.70%, 01/10/25(a)(b)			1,890		2,043,006
(USD Swap Semi 5 Year + 5.15%), 7.38%(a)(b)(d)			1,655		1,849,462
1.50%, 05/25/28	EUR		1,600		1,936,037
China Construction Bank Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 1.88%), 4.25%, 02/27/29(a)	USD		300		314,062
Citibank NA:
3.40%, 07/23/21			5,578		5,709,019
3.65%, 01/23/24			8,104		8,594,828
Citigroup, Inc.:
4.05%, 07/30/22			5		5,236

Security		Par (000)		Value
Banks (continued)
(LIBOR USD 3 Month + 1.02%), 4.04%, 06/01/24(a)	USD		313	$	330,725
4.40%, 06/10/25			1,273		1,370,244
5.50%, 09/13/25			21		23,807
3.20%, 10/21/26			345		356,638
4.45%, 09/29/27			1,392		1,518,777
(LIBOR USD 3 Month + 1.56%), 3.89%, 01/10/28(a)			1,795		1,922,728
(LIBOR USD 3 Month + 1.39%), 3.67%, 07/24/28(a).			2,465		2,609,571
(LIBOR USD 3 Month + 1.15%), 3.52%, 10/27/28(a)			2,590		2,708,597
4.65%, 07/23/48			60		73,429
Citizens Bank NA, 2.25%, 03/02/20			4,956		4,957,544
Cooperatieve Rabobank UA, 1.38%, 02/03/27	EUR		990		1,184,746
Credit Agricole SA:
(USD Swap Semi 5 Year + 6.19%), 8.12%(a)(b)(d)	USD		2,300		2,705,375
1.25%, 04/14/26	EUR		1,100		1,291,091
Credit Suisse Group Funding Guernsey Ltd.:
3.80%, 09/15/22	USD		2,410		2,506,109
3.80%, 06/09/23			450		469,970
3.75%, 03/26/25			510		535,637
Danske Bank A/S(b):
5.00%, 01/12/22			3,388		3,561,971
3.88%, 09/12/23			1,540		1,596,589
5.38%, 01/12/24			1,355		1,488,374
Fifth Third Bancorp, 3.65%, 01/25/24			470		495,436
HSBC Holdings plc:
3.40%, 03/08/21			318		323,004
(LIBOR USD 3 Month + 1.06%), 3.26%, 03/13/23(a)			1,050		1,068,891
(LIBOR USD 3 Month + 1.21%), 3.80%, 03/11/25(a)			425		442,863
(USD Swap Rate 5 Year + 3.75%), 6.00%(a)(d)			2,240		2,303,885
(LIBOR USD 3 Month + 1.55%), 4.04%, 03/13/28(a)			2,992		3,177,356
(USD Swap Rate 5 Year + 3.61%), 6.50%(a)(d)			200		209,190
(LIBOR USD 3 Month + 1.61%), 3.97%, 05/22/30(a)			200		213,538
ING Groep NV:
4.10%, 10/02/23			5,650		5,997,492
4.63%, 01/06/26(b)			500		553,620
JPMorgan Chase & Co.:
4.25%, 10/15/20			69		70,604
2.55%, 03/01/21			2,869		2,885,104
4.63%, 05/10/21			3,562		3,702,059
(LIBOR USD 3 Month + 0.61%), 3.51%, 06/18/22(a)			64		65,444
2.97%, 01/15/23			4,610		4,693,406
3.20%, 01/25/23			100		103,274
(LIBOR USD 3 Month + 0.70%), 3.21%, 04/01/23(a)			4,407		4,514,389
(LIBOR USD 3 Month + 0.94%), 2.78%, 04/25/23(a)			709		718,040
3.38%, 05/01/23			49		50,677
2.70%, 05/18/23			774		787,012
3.88%, 02/01/24			60		63,928
(LIBOR USD 3 Month + 0.73%), 3.56%, 04/23/24(a)			161		167,891
(LIBOR USD 3 Month + 0.89%), 3.80%, 07/23/24(a)			2,693		2,840,233
3.88%, 09/10/24			348		370,281

20 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
(LIBOR USD 3 Month + 1.00%), 4.02%, 12/05/24(a)	USD		5,767	$	6,149,163
3.13%, 01/23/25			271		280,609
(LIBOR USD 3 Month + 1.16%), 3.22%, 03/01/25(a)			32		33,131
3.90%, 07/15/25			33		35,579
(SOFR +1.16%), 2.30%, 10/15/25(a)			1,260		1,255,236
3.20%, 06/15/26			310		321,823
2.95%, 10/01/26			360		369,112
4.13%, 12/15/26			49		53,466
(LIBOR USD 3 Month + 1.25%), 3.96%, 01/29/27(a)			120		129,751
4.25%, 10/01/27			136		149,414
(LIBOR USD 3 Month + 1.34%), 3.78%, 02/01/28(a)			5,755		6,157,164
(LIBOR USD 3 Month + 1.38%), 3.54%, 05/01/28(a)			6,917		7,293,724
(LIBOR USD 3 Month + 0.95%), 3.51%, 01/23/29(a)			273		288,572
(LIBOR USD 3 Month + 1.26%), 4.20%, 07/23/29(a)			797		883,313
(LIBOR USD 3 Month + 1.16%), 3.70%, 05/06/30(a)			1,430		1,532,231
(SOFR +1.51%), 2.74%, 10/15/30(a)			2,710		2,690,965
(LIBOR USD 3 Month + 1.36%), 3.88%, 07/24/38(a)			679		750,195
(LIBOR USD 3 Month + 1.46%), 4.03%, 07/24/48(a)			15		16,958
KeyBank NA, 3.35%, 06/15/21			1,075		1,096,629
KeyCorp, 4.15%, 10/29/25			483		528,542
Kookmin Bank, (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 2.64%), 4.35%(a)(d)			700		716,625
Lloyds Banking Group plc, 3.75%, 01/11/27			1,682		1,744,380
Mitsubishi UFJ Financial Group, Inc.:
3.54%, 07/26/21			1,080		1,104,305
3.00%, 02/22/22			1,276		1,298,697
3.46%, 03/02/23			8,400		8,701,559
3.76%, 07/26/23			240		252,301
3.29%, 07/25/27			205		214,197
4.05%, 09/11/28			10		11,070
Mizuho Financial Group, Inc.:
2.63%, 04/12/21(b)			3,350		3,364,284
2.27%, 09/13/21			242		241,851
2.95%, 02/28/22			8,029		8,143,945
(LIBOR USD 3 Month + 1.10%), 2.55%, 09/13/25(a)			2,120		2,114,179
3.66%, 02/28/27			203		217,497
(LIBOR USD 3 Month + 1.31%), 2.87%, 09/13/30(a)			1,127		1,122,277
Nordea Bank Abp, 2.13%, 05/29/20(b)			2,295		2,296,005
Royal Bank of Scotland Group plc, (LIBOR USD 3 Month +1.48%), 3.50%, 05/15/23(a)			457		463,083
Santander UK Group Holdings plc, 2.88%, 08/05/21			2,095		2,102,483
Santander UK plc, 5.00%, 11/07/23(b)			3,682		3,909,769
Shinhan Financial Group Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year +1.50%), 3.34%, 02/05/30(a)			800		810,321
Societe Generale SA, 0.00%, 05/27/22	EUR		2,800		3,057,903
Standard Chartered plc(a)(b):
(LIBOR USD 3 Month + 1.15%), 4.25%, 01/20/23	USD		4,390		4,538,817
(LIBOR USD 3 Month + 1.08%), 3.89%, 03/15/24			1,067		1,101,461

Security		Par (000)		Value
Banks (continued)
Sumitomo Mitsui Financial Group, Inc.:
2.70%, 07/16/24	USD		875	$	884,762
3.04%, 07/16/29			1,180		1,206,999
SunTrust Banks, Inc.:
2.80%, 05/17/22			935		951,273
3.20%, 04/01/24			17		17,673
4.00%, 05/01/25			75		81,067
Svenska Handelsbanken AB:
2.40%, 10/01/20			360		361,464
3.35%, 05/24/21			290		296,079
3.90%, 11/20/23			250		267,148
Toronto-Dominion Bank (The):
3.50%, 07/19/23			818		862,600
0.38%, 04/25/24	EUR		1,045		1,152,019
2.65%, 06/12/24	USD		157		159,959
UBS Group Funding Switzerland AG(b): 2.95%, 09/24/20			3,935		3,968,934
(LIBOR USD 3 Month + 0.95%), 2.86%, 08/15/23(a)			4,430		4,477,789
(USD Swap Semi 5 Year + 4.34%), 7.00%(a)(d)			2,600		2,761,200
4.13%, 09/24/25			2,724		2,942,921
United Overseas Bank Ltd., (USD Swap Semi 5 Year + 1.79%), 3.88%(a)(d)			400		402,125
US Bancorp:
2.95%, 07/15/22			948		970,017
2.40%, 07/30/24			1,592		1,612,471
3.10%, 04/27/26			225		233,714
Series X, 3.15%, 04/27/27			39		41,335
US Bank NA, (LIBOR USD 3 Month + 0.29%), 3.10%, 05/21/21(a)			745		749,619
Wells Fargo &Co.:
2.60%, 07/22/20			368		369,737
2.55%, 12/07/20			926		930,969
2.50%, 03/04/21			5,116		5,140,017
4.60%, 04/01/21			658		681,985
2.10%, 07/26/21			58		57,942
3.50%, 03/08/22			747		770,808
2.63%, 07/22/22			4,452		4,501,428
3.75%, 01/24/24			4,459		4,718,245
3.30%, 09/09/24			151		157,633
3.00%, 02/19/25			170		174,335
3.55%, 09/29/25			279		294,868
3.00%, 04/22/26			2,024		2,075,323
3.00%, 10/23/26			471		483,712
(LIBOR USD 3 Month + 1.17%), 3.20%, 06/17/27(a)			272		281,051
(LIBOR USD 3 Month + 1.31%), 3.58%, 05/22/28(a)			4,999		5,295,814
4.15%, 01/24/29			518		574,348
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21(a)			3,180		3,208,052
Woori Bank, 5.13%, 08/06/28			200		227,591
					287,441,952
Beverages — 0.6%
Anheuser-Busch Cos. LLC:
4.70%, 02/01/36			7,095		8,195,420
4.90%, 02/01/46			1,059		1,263,628
Anheuser-Busch InBev Worldwide, Inc.:
4.00%, 04/13/28			88		97,053
4.75%, 01/23/29			5,736		6,666,731
5.55%, 01/23/49			110		143,959
Coca-Cola Co. (The):
2.20%, 05/25/22			90		90,739

S C H E D U L E S   O F   I N V E S T M E N T S 21

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Beverages (continued)
3.20%, 11/01/23	USD		4	$	4,207
2.88%, 10/27/25			321		335,925
2.25%, 09/01/26			360		361,905
Coca-Cola European Partners plc, 1.13%, 04/12/29.	EUR		535		614,474
Molson Coors Brewing Co.:
5.00%, 05/01/42	USD		40		44,177
4.20%, 07/15/46			338		341,557
PepsiCo, Inc.:
4.45%, 04/14/46			178		221,749
3.45%, 10/06/46			1,078		1,161,772
4.00%, 05/02/47			438		512,970
					20,056,266
Biotechnology — 0.5%
AbbVie, Inc.:
3.60%, 05/14/25			505		525,243
4.50%, 05/14/35			3,173		3,400,271
Amgen, Inc.:
4.40%, 05/01/45			1,850		2,090,656
4.66%, 06/15/51			98		114,741
Baxalta, Inc., 5.25%, 06/23/45			229		296,163
Celgene Corp.:
3.95%, 10/15/20			190		193,356
2.25%, 08/15/21			215		215,008
3.25%, 08/15/22			950		978,811
3.55%, 08/15/22			1,030		1,068,202
2.75%, 02/15/23			1,428		1,453,462
3.25%, 02/20/23			1,570		1,625,290
3.63%, 05/15/24			25		26,400
Gilead Sciences, Inc.:
2.55%, 09/01/20			30		30,145
3.25%, 09/01/22			20		20,662
3.70%, 04/01/24			595		629,852
3.50%, 02/01/25			1,316		1,389,399
3.65%, 03/01/26			151		161,846
4.60%, 09/01/35			1,068		1,266,141
4.80%, 04/01/44			66		78,933
4.50%, 02/01/45			399		461,739
4.75%, 03/01/46			140		166,635
					16,192,955
Building Products — 0.1%
Johnson Controls International plc:
4.63%, 07/02/44(e)			400		434,819
5.13%, 09/14/45			30		35,005
4.50%, 02/15/47			16		17,638
Owens Corning:
3.95%, 08/15/29			415		421,960
4.30%, 07/15/47			56		50,856
Sika Capital BV, 0.88%, 04/29/27	EUR		640		727,844
					1,688,122
Capital Markets — 1.9%
Bank of New York Mellon Corp. (The):
Series E, (LIBOR USD 3 Month + 3.42%), 4.95%(a)(d)	USD		705		708,525
2.95%, 01/29/23			65		66,752
(LIBOR USD 3 Month + 1.07%), 3.44%, 02/07/28(a)			1,555		1,648,861
BAWAG PSK Bank fuer Arbeit und Wirtschaft und Oesterreichische Postsparkasse AG, 0.38%, 09/03/27	EUR		600		633,773
Charles Schwab Corp. (The), 3.20%, 03/02/27	USD		725		758,742
China Cinda Finance 2017 I Ltd., 4.75%, 02/21/29.			300		337,781

Security		Par (000)		Value
Capital Markets (continued)
CME Group, Inc.:
3.00%, 09/15/22	USD		13	$	13,416
3.75%, 06/15/28			298		333,002
Coastal Emerald Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 7.45%), 4.30%(a)(d)			700		698,951
Credit Suisse Group AG(a)(b):
(LIBOR USD 3 Month + 1.20%), 3.00%, 12/14/23			772		779,791
(LIBOR USD 3 Month + 1.24%), 4.21%, 06/12/24			2,623		2,762,080
Deutsche Bank AG:
2.70%, 07/13/20			3,770		3,762,283
2.95%, 08/20/20			265		264,893
4.25%, 10/14/21			710		721,268
Goldman Sachs Group, Inc. (The):
2.55%, 10/23/19			3,987		3,987,481
2.75%, 09/15/20			1,050		1,055,642
5.25%, 07/27/21			29		30,562
2.35%, 11/15/21			3,184		3,187,343
5.75%, 01/24/22			110		118,513
(LIBOR USD 3 Month + 1.05%), 2.91%, 06/05/23(a)			640		648,276
(LIBOR USD 3 Month + 0.99%), 2.90%, 07/24/23(a)			113		114,518
3.75%, 05/22/25			203		214,822
3.75%, 02/25/26			138		145,941
3.50%, 11/16/26			845		877,828
3.85%, 01/26/27			2,922		3,098,405
(LIBOR USD 3 Month + 1.51%), 3.69%, 06/05/28(a)			3,768		3,952,309
(LIBOR USD 3 Month + 1.16%), 3.81%, 04/23/29(a)			326		346,117
(LIBOR USD 3 Month + 1.30%), 4.22%, 05/01/29(a)			655		714,991
(LIBOR USD 3 Month + 1.37%), 4.02%, 10/31/38(a)			1,150		1,238,285
(LIBOR USD 3 Month + 1.43%), 4.41%, 04/23/39(a)			125		141,176
Huarong Finance 2019 Co. Ltd., 4.50%, 05/29/29.			600		631,125
Hubei Science &Technology Investment Group Hong Kong Ltd., 4.38%, 03/05/21			200		201,500
Intercontinental Exchange, Inc.:
2.75%, 12/01/20			63		63,484
2.35%, 09/15/22			11		11,089
4.00%, 10/15/23			55		58,700
3.75%, 12/01/25			2,045		2,201,541
3.10%, 09/15/27			101		105,785
3.75%, 09/21/28			1,835		2,010,145
Joy Treasure Assets Holdings, Inc., 4.50%, 03/20/29.			200		215,000
Moody’s Corp.:
2.75%, 12/15/21			97		98,284
4.88%, 02/15/24			139		153,153
Morgan Stanley:
3.13%, 01/23/23			40		41,030
3.75%, 02/25/23			3,016		3,153,353
3.70%, 10/23/24			67		70,944
4.00%, 07/23/25			354		381,888
3.13%, 07/27/26			40		41,224
6.25%, 08/09/26			707		857,210
3.63%, 01/20/27			2,705		2,864,172
(LIBOR USD 3 Month + 1.34%), 3.59%, 07/22/28(a)			7,136		7,522,590

22 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Capital Markets (continued)
(LIBOR USD 3 Month + 1.14%), 3.77%, 01/24/29(a)	USD		3,317	$	3,545,136
Northern Trust Corp.:
3.15%, 05/03/29			90		95,234
(LIBOR USD 3 Month + 1.13%), 3.38%, 05/08/32(a)			1,605		1,647,163
Nuveen LLC, 4.00%, 11/01/28(b)			110		122,848
State Street Corp., 2.65%, 05/19/26			813		833,872
UBS Group AG, (LIBOR USD 3 Month + 1.47%), 3.13%, 08/13/30(a)(b)			689		693,694
Volvo Treasury AB, (EURIBOR 3 Month + 0.65%), 0.22%, 09/13/21(a)	EUR		2,000		2,193,917
					63,176,408
Chemicals — 0.5%
Air Liquide Finance SA, 2.50%, 09/27/26(b)	USD		239		241,329
CNAC HK Finbridge Co. Ltd., 4.63%, 03/14/23			1,800		1,888,312
Dow Chemical Co. (The):
9.00%, 04/01/21			915		998,856
3.00%, 11/15/22			395		402,450
4.55%, 11/30/25(b)			45		49,431
3.63%, 05/15/26(b)			1,852		1,933,044
4.38%, 11/15/42			1,584		1,644,278
DuPont de Nemours, Inc.:
4.49%, 11/15/25			4,125		4,558,593
5.42%, 11/15/48			1,613		2,042,119
RPM International, Inc., 4.25%, 01/15/48			150		146,411
SABIC Capital II BV, 4.00%, 10/10/23(b)			214		224,700
Sherwin-Williams Co. (The), 4.00%, 12/15/42.			538		557,036
UPL Corp. Ltd., 4.50%, 03/08/28			400		414,689
					15,101,248
Commercial Services & Supplies — 0.5%
RELX Capital, Inc.:
3.13%, 10/15/22			100		102,039
3.50%, 03/16/23			2,327		2,410,740
1.30%, 05/12/25	EUR		865		999,596
4.00%, 03/18/29	USD		2,035		2,221,146
Republic Services, Inc.:
3.55%, 06/01/22			884		915,877
4.75%, 05/15/23			1,910		2,068,751
2.50%, 08/15/24			205		207,177
2.90%, 07/01/26			824		847,800
3.95%, 05/15/28			1,811		2,003,830
Waste Management, Inc.:
2.95%, 06/15/24			75		77,607
3.13%, 03/01/25			145		152,063
3.45%, 06/15/29			85		91,794
3.90%, 03/01/35			302		333,037
4.00%, 07/15/39			1,811		2,056,974
4.15%, 07/15/49			1,085		1,264,395
					15,752,826
Communications Equipment — 0.1%
Cisco Systems, Inc., 2.95%, 02/28/26			280		294,945
Motorola Solutions, Inc., 4.60%, 05/23/29			2,875		3,133,068
					3,428,013
Construction & Engineering — 0.0%
Leader Goal International Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 6.92%), 4.25%(a)(d)			300		304,781
Consumer Finance — 1.2%
American Express Co.:
2.50%, 08/01/22			1,270		1,282,749
3.70%, 08/03/23			442		465,675
3.40%, 02/22/24			1,050		1,098,127

Security		Par (000)		Value
Consumer Finance (continued)
4.20%, 11/06/25	USD		1,794	$	1,971,497
3.13%, 05/20/26			2,140		2,224,525
American Express Credit Corp.:
Series F, 2.60%, 09/14/20			11		11,057
2.25%, 05/05/21			813		815,884
2.70%, 03/03/22			55		55,958
American Honda Finance Corp., 2.15%, 09/10/24.			1,200		1,194,878
Capital One Financial Corp.:
3.45%, 04/30/21			397		404,190
4.75%, 07/15/21			499		521,010
3.90%, 01/29/24			3,107		3,282,554
3.75%, 03/09/27			1,094		1,148,368
3.80%, 01/31/28			257		271,131
Discover Financial Services, 4.10%, 02/09/27			388		412,861
Ford Motor Credit Co. LLC:
3.34%, 03/18/21			205		205,957
5.88%, 08/02/21			3,248		3,402,118
3.22%, 01/09/22			6,600		6,593,310
2.98%, 08/03/22			1,710		1,695,932
4.25%, 09/20/22			615		629,647
5.58%, 03/18/24			672		714,383
4.69%, 06/09/25			535		545,727
4.13%, 08/04/25			455		450,159
General Motors Financial Co., Inc.:
3.15%, 06/30/22			705		713,134
3.50%, 11/07/24			570		576,452
4.00%, 01/15/25			2,488		2,554,349
4.00%, 10/06/26			173		175,056
Hyundai Capital Services, Inc., 3.00%, 08/29/22(b)			1,650		1,662,891
Synchrony Financial:
2.70%, 02/03/20			742		742,842
4.38%, 03/19/24			709		752,340
4.50%, 07/23/25			40		42,688
Toyota Motor Credit Corp.:
2.63%, 01/10/23			667		682,039
3.05%, 01/11/28			790		834,497
3.65%, 01/08/29			162		179,386
Volkswagen International Finance NV:
1.88%, 03/30/27	EUR		500		575,927
3.30%, 03/22/33			400		518,737
					39,408,035
Containers &Packaging — 0.0%
International Paper Co., 6.00%, 11/15/41	USD		1,005		1,226,475
Diversified Consumer Services — 0.1%
American University (The), 3.67%, 04/01/49			1,422		1,567,664
Massachusetts Institute of Technology, 3.96%, 07/01/38.			1,866		2,176,643
					3,744,307
Diversified Financial Services — 0.3%
AXA Equitable Holdings, Inc.:
3.90%, 04/20/23			210		219,185
5.00%, 04/20/48			370		398,827
GE Capital International Funding Co. Unlimited Co., 4.42%, 11/15/35			2,420		2,532,575
ORIX Corp., 2.90%, 07/18/22			951		967,003
Shell International Finance BV:
1.88%, 05/10/21			295		295,030
3.25%, 05/11/25			645		682,393
1.25%, 05/12/28	EUR		535		635,993
4.13%, 05/11/35	USD		1,169		1,350,970
6.38%, 12/15/38			805		1,176,707

S C H E D U L E S   O F   I N V E S T M E N T S 23

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Financial Services (continued)
3.63%, 08/21/42	USD		533	$	573,689
4.55%, 08/12/43			132		162,308
4.00%, 05/10/46			20		23,024
Siemens Financieringsmaatschappij NV:
1.25%, 02/28/31	EUR		1,150		1,363,934
0.50%, 09/05/34			330		351,764
					10,733,402
Diversified Telecommunication Services — 1.7%
AT&T, Inc.:
3.00%, 02/15/22	USD		114		116,330
3.20%, 03/01/22			227		232,536
3.80%, 03/15/22			239		248,103
3.40%, 06/15/22(e)			194		199,977
3.00%, 06/30/22			982		1,002,352
0.00%, 11/27/22(b)(f)			3,000		2,776,958
3.60%, 02/17/23			390		406,714
3.80%, 03/01/24			321		339,241
3.55%, 06/01/24			473		494,594
3.60%, 07/15/25			796		837,928
3.80%, 02/15/27			334		353,483
4.30%, 02/15/30			5,974		6,573,060
4.50%, 05/15/35			1,548		1,698,452
6.35%, 03/15/40			187		237,467
6.00%, 08/15/40			1,483		1,849,369
5.35%, 09/01/40			279		326,901
6.38%, 03/01/41			184		236,887
5.15%, 03/15/42			351		402,204
4.30%, 12/15/42			131		136,702
4.80%, 06/15/44			995		1,100,614
4.35%, 06/15/45			2,445		2,569,342
4.85%, 07/15/45			874		974,875
4.75%, 05/15/46			140		155,255
5.15%, 11/15/46			369		426,374
5.45%, 03/01/47			166		200,817
Deutsche Telekom International Finance BV, 3.60%, 01/19/27(b)			890		939,765
Orange SA, 1.38%, 09/04/49	EUR		300		310,511
Telstra Corp. Ltd., 3.50%, 09/21/22			2,450		2,956,145
Verizon Communications, Inc.:
(LIBOR USD 3 Month + 0.55%), 2.70%, 05/22/20(a)	USD		4,232		4,243,391
4.13%, 03/16/27			10,057		11,104,683
4.50%, 08/10/33			2,061		2,393,111
4.40%, 11/01/34			1,162		1,329,263
4.27%, 01/15/36			6,526		7,338,132
5.25%, 03/16/37			292		361,514
4.81%, 03/15/39			614		735,912
4.75%, 11/01/41			401		475,591
4.13%, 08/15/46			94		104,726
5.50%, 03/16/47			12		15,838
					56,205,117
Electric Utilities — 2.5%
Adani Transmission Ltd., 4.00%, 08/03/26			200		204,437
AEP Texas, Inc.:
3.95%, 06/01/28			2,580		2,848,140
Series G, 4.15%, 05/01/49			19		21,863
AEP Transmission Co. LLC:
3.75%, 12/01/47			110		120,008
4.25%, 09/15/48			490		576,478
3.15%, 09/15/49			425		418,079
Alabama Power Co.:
Series 13-A, 3.55%, 12/01/23			190		200,821
3.75%, 03/01/45			1,425		1,535,892
Series B, 3.70%, 12/01/47			430		463,006

Security		Par (000)		Value
Electric Utilities (continued)
Series A, 4.30%, 07/15/48	USD		437	$	510,873
3.45%, 10/01/49			375		386,755
Alliant Energy Finance LLC, 3.75%, 06/15/23(b)			419		437,987
Baltimore Gas & Electric Co.:
3.50%, 08/15/46			1,218		1,264,641
3.75%, 08/15/47			557		601,251
4.25%, 09/15/48			230		268,096
3.20%, 09/15/49			230		227,574
Bi Hai Co. Ltd., 6.25%, 03/05/22			200		206,187
CenterPoint Energy Houston Electric LLC, 3.95%, 03/01/48			448		511,212
Commonwealth Edison Co., Series 122, 2.95%, 08/15/27.			310		321,025
Dayton Power & Light Co. (The), 3.95%, 06/15/49(b)			1,078		1,183,698
DTE Electric Co., Series A, 4.05%, 05/15/48			1,575		1,826,344
Duke Energy Carolinas LLC:
3.05%, 03/15/23			246		254,523
3.95%, 11/15/28			326		363,936
2.45%, 08/15/29			1,365		1,366,018
5.30%, 02/15/40			163		211,308
4.25%, 12/15/41			40		46,134
3.88%, 03/15/46			480		532,906
3.70%, 12/01/47			925		1,004,197
3.20%, 08/15/49			765		767,074
Duke Energy Florida LLC:
3.80%, 07/15/28			861		948,463
6.40%, 06/15/38			765		1,123,510
3.40%, 10/01/46			570		588,647
Duke Energy Ohio, Inc., 3.65%, 02/01/29			2,650		2,899,398
Duke Energy Progress LLC:
3.00%, 09/15/21			395		402,320
3.25%, 08/15/25			895		943,962
3.70%, 09/01/28			2,285		2,508,028
3.45%, 03/15/29			285		307,604
4.10%, 03/15/43			705		795,656
4.20%, 08/15/45			670		776,223
Enexis Holding NV, 0.75%, 07/02/31	EUR		1,300		1,468,200
Entergy Arkansas LLC, 4.20%, 04/01/49	USD		32		37,041
Entergy Corp., 2.95%, 09/01/26			30		30,464
Entergy Louisiana LLC:
5.40%, 11/01/24			340		393,514
4.20%, 09/01/48			1,265		1,481,988
4.20%, 04/01/50			15		17,633
ESB Finance DAC, 1.13%, 06/11/30	EUR		565		659,853
Eversource Energy, Series L, 2.90%, 10/01/24	USD		2,259		2,314,452
Exelon Corp.:
4.95%, 06/15/35			226		264,532
4.45%, 04/15/46			445		503,165
FirstEnergy Transmission LLC(b):
4.35%, 01/15/25			3,408		3,676,592
4.55%, 04/01/49			995		1,170,445
Florida Power & Light Co.:
(LIBOR USD 3 Month + 0.40%), 2.64%, 05/06/22(a)			5,710		5,711,569
2.75%, 06/01/23			622		638,253
3.25%, 06/01/24			80		83,983
5.25%, 02/01/41			240		314,440
3.95%, 03/01/48			810		936,363
3.15%, 10/01/49			1,645		1,673,834
Indiana Michigan Power Co., Series L, 3.75%, 07/01/47.			280		303,967
Interstate Power &Light Co.:
3.60%, 04/01/29			25		26,808
3.50%, 09/30/49			80		80,389

24 2 0 1 9   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  (continued) September 30, 2018 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Electric Utilities (continued)
ITC Holdings Corp., 2.70%, 11/15/22	USD		1,194	$	1,205,486
Kansas City Power & Light Co., 4.20%, 03/15/48			245		286,923
LLPL Capital Pte. Ltd., 6.88%, 02/04/39			296		343,048
MidAmerican Energy Co.:
4.40%, 10/15/44			740		887,446
3.95%, 08/01/47			39		44,387
Mid-Atlantic Interstate Transmission LLC, 4.10%, 05/15/28(b)			366		403,486
Northern States Power Co.:
3.40%, 08/15/42			1,160		1,214,946
4.00%, 08/15/45			320		365,451
3.60%, 09/15/47			240		260,522
4.20%, 09/01/48			405		465,003
2.90%, 03/01/50			440		425,384
NSTAR Electric Co.:
3.20%, 05/15/27			282		296,822
3.25%, 05/15/29			140		149,287
Ohio Power Co.:
Series G, 6.60%, 02/15/33			1,165		1,615,336
4.00%, 06/01/49			585		665,283
Oklahoma Gas & Electric Co., 3.30%, 03/15/30			2,330		2,425,406
Oncor Electric Delivery Co. LLC:
3.70%, 11/15/28(b)			1,255		1,381,905
5.75%, 03/15/29			100		126,553
4.55%, 12/01/41			410		500,219
3.80%, 09/30/47			547		605,571
4.10%, 11/15/48			42		49,450
3.80%, 06/01/49(b)			180		201,806
3.10%, 09/15/49(b)			490		491,006
PacifiCorp:
5.75%, 04/01/37			140		187,813
6.25%, 10/15/37			75		105,509
4.10%, 02/01/42			160		182,180
4.13%, 01/15/49			1,540		1,785,408
Public Service Electric & Gas Co.:
3.00%, 05/15/27			50		52,065
3.65%, 09/01/28			1,440		1,577,442
3.20%, 05/15/29			40		42,521
5.50%, 03/01/40			120		160,061
3.65%, 09/01/42			31		33,341
RTE Reseau de Transport d’Electricite SADIR, 1.13%, 09/09/49	EUR		500		533,686
Southwestern Electric Power Co., Series M, 4.10%, 09/15/28	USD		715		792,186
Southwestern Public Service Co., 3.75%, 06/15/49			19		20,952
Tampa Electric Co.:
4.30%, 06/15/48			267		312,272
4.45%, 06/15/49			912		1,100,844
Trans-Allegheny Interstate Line Co., 3.85%, 06/01/25(b)			2,524		2,682,981
Union Electric Co., 3.50%, 03/15/29			830		902,019
Virginia Electric & Power Co.:
Series C, 2.75%, 03/15/23			1,365		1,393,440
Series A, 3.15%, 01/15/26			150		156,053
Series A, 3.50%, 03/15/27			1,163		1,240,651
4.00%, 01/15/43			747		828,220
4.45%, 02/15/44			341		400,882
Series B, 4.20%, 05/15/45			679		774,421
Series C, 4.00%, 11/15/46			675		754,139
Vistra Operations Co. LLC, 4.30%, 07/15/29(b)			2,078		2,132,043
Wisconsin Power & Light Co., 3.00%, 07/01/29			194		202,301
					84,525,915

Security		Par (000)		Value
Electrical Equipment — 0.1%
Eaton Capital Unlimited Co., 0.70%, 05/14/25	EUR		810	$	899,722
Schneider Electric SE, 0.25%, 09/09/24			1,600		1,768,523
					2,668,245
Electronic Equipment, Instruments & Components — 0.0%
Corning, Inc.:
3.70%, 11/15/23	USD		180		188,293
4.38%, 11/15/57			505		520,018
Tyco Electronics Group SA:
3.45%, 08/01/24			215		224,514
3.13%, 08/15/27			504		518,146
					1,450,971
Energy Equipment & Services — 0.0%
Halliburton Co.:
7.45%, 09/15/39			9		12,819
4.75%, 08/01/43			17		18,341
Schlumberger Finance BV, 0.00%, 10/15/24	EUR		700		761,736
					792,896
Entertainment — 0.2%
NBCUniversal Media LLC:
5.95%, 04/01/41	USD		1,550		2,132,570
4.45%, 01/15/43			1,095		1,269,458
Viacom, Inc.:
6.88%, 04/30/36			580		758,180
4.38%, 03/15/43			43		44,349
5.85%, 09/01/43			50		61,327
Walt Disney Co. (The)(b):
6.20%, 12/15/34			222		315,812
6.40%, 12/15/35			922		1,328,325
6.65%, 11/15/37			373		560,568
5.40%, 10/01/43			138		190,651
4.75%, 09/15/44			140		181,369
Warner Media LLC, 7.63%, 04/15/31			395		536,122
					7,378,731
Equity Real Estate Investment Trusts (REITs) — 0.6%
American Tower Corp.:
3.30%, 02/15/21			15		15,214
2.25%, 01/15/22			2,070		2,072,721
4.70%, 03/15/22			10		10,594
3.50%, 01/31/23			60		62,161
3.00%, 06/15/23			410		419,401
5.00%, 02/15/24			404		446,375
3.38%, 05/15/24			320		332,602
2.95%, 01/15/25			160		163,377
4.00%, 06/01/25			580		619,921
3.38%, 10/15/26			618		642,714
2.75%, 01/15/27			390		389,368
3.13%, 01/15/27			214		218,306
3.95%, 03/15/29			478		514,807
3.80%, 08/15/29			898		958,440
CC Holdings GS V LLC, 3.85%, 04/15/23			533		558,640
Crown Castle International Corp.:
3.40%, 02/15/21			20		20,274
2.25%, 09/01/21			40		40,033
4.88%, 04/15/22			88		93,550
5.25%, 01/15/23			328		357,116
3.15%, 07/15/23			2,010		2,059,449
3.20%, 09/01/24			2,670		2,742,594
3.70%, 06/15/26			1,463		1,542,458
4.00%, 03/01/27			80		86,063
3.65%, 09/01/27			392		415,051
3.80%, 02/15/28			14		14,889
4.30%, 02/15/29			100		110,405
3.10%, 11/15/29			2,655		2,663,382

S C H E D U L E S   O F   I N V E S T M E N T S 25

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
GLP Capital LP, 5.25%, 06/01/25	USD		2,013	$	2,217,380
Prologis Euro Finance LLC, 1.50%, 09/10/49	EUR		210		218,683
Realty Income Corp.:
3.25%, 10/15/22	USD		315		325,064
3.00%, 01/15/27			648		667,693
Trust F/1401, 4.87%, 01/15/30(b)			205		210,862
					21,209,587
Food & Staples Retailing — 0.4%
Alimentation Couche-Tard, Inc., 3.55%, 07/26/27(b)			3,005		3,123,851
Kroger Co. (The), 2.65%, 10/15/26			994		984,851
Walgreens Boots Alliance, Inc.:
3.45%, 06/01/26			5,105		5,271,879
4.80%, 11/18/44			92		97,158
Walmart, Inc.:
3.40%, 06/26/23			407		428,427
2.65%, 12/15/24			2		2,063
3.55%, 06/26/25			133		143,583
3.25%, 07/08/29			2,241		2,420,918
5.25%, 09/01/35			25		33,280
3.95%, 06/28/38			1,280		1,499,457
4.00%, 04/11/43			544		637,931
					14,643,398
Food Products — 0.1%
Campbell Soup Co., 8.88%, 05/01/21			560		611,846
Tyson Foods, Inc.:
4.00%, 03/01/26			242		262,397
3.55%, 06/02/27			760		805,312
4.35%, 03/01/29			65		73,582
4.55%, 06/02/47			90		100,932
5.10%, 09/28/48			156		189,525
					2,043,594
Gas Utilities — 0.1%
Atmos Energy Corp., 3.38%, 09/15/49			460		466,907
Dominion Energy Gas Holdings LLC:
4.80%, 11/01/43			358		427,264
4.60%, 12/15/44			890		1,051,211
Piedmont Natural Gas Co., Inc., 3.64%, 11/01/46			92		94,812
					2,040,194
Health Care Equipment & Supplies — 0.4%
Abbott Laboratories:
3.75%, 11/30/26			3,742		4,076,697
4.75%, 04/15/43			74		91,320
Baxter International, Inc., 1.70%, 08/15/21			110		109,103
Becton Dickinson and Co.:
2.68%, 12/15/19			465		465,113
3.30%, 03/01/23			1,150		1,171,666
Covidien International Finance SA, 2.95%, 06/15/23			710		733,111
DH Europe Finance II SARL, 0.20%, 03/18/26	EUR		995		1,081,182
Edwards Lifesciences Corp., 4.30%, 06/15/28	USD		219		246,692
Medtronic Global Holdings SCA:
0.38%, 03/07/23	EUR		2,385		2,630,013
3.35%, 04/01/27	USD		15		16,120
1.50%, 07/02/39	EUR		115		133,541
Medtronic, Inc.:
3.50%, 03/15/25	USD		250		268,348
4.38%, 03/15/35			2,705		3,255,306
					14,278,212

Security		Par (000)		Value
Health Care Providers & Services — 1.4%
Aetna, Inc.:
4.50%, 05/15/42	USD		952	$	1,004,644
4.13%, 11/15/42			687		687,832
4.75%, 03/15/44			565		619,178
Anthem, Inc.:
3.50%, 08/15/24			123		128,911
3.65%, 12/01/27			61		64,098
4.10%, 03/01/28			373		402,864
2.88%, 09/15/29			335		331,488
CHRISTUS Health, Series C, 4.34%, 07/01/28			767		867,903
Cigna Corp.:
3.75%, 07/15/23			26		27,226
4.13%, 11/15/25			13		13,958
4.38%, 10/15/28			1,912		2,089,197
Cigna Holding Co., 3.25%, 04/15/25			1,847		1,901,682
CommonSpirit Health:
3.35%, 10/01/29			839		848,281
4.19%, 10/01/49			554		570,229
CVS Health Corp.:
3.70%, 03/09/23			887		923,312
4.10%, 03/25/25			1,627		1,738,392
2.88%, 06/01/26			28		28,065
4.88%, 07/20/35			210		233,935
4.78%, 03/25/38			239		261,749
5.13%, 07/20/45			2,978		3,375,447
5.05%, 03/25/48			516		585,623
Dignity Health, 3.81%, 11/01/24			450		475,921
Express Scripts Holding Co.:
2.60%, 11/30/20			275		276,195
3.30%, 02/25/21			686		695,039
4.80%, 07/15/46			18		20,150
HCA, Inc.:
4.75%, 05/01/23			4,939		5,290,349
5.00%, 03/15/24			1,449		1,582,233
5.25%, 04/15/25			3,970		4,415,577
4.50%, 02/15/27			188		201,570
4.13%, 06/15/29			2,691		2,822,013
Laboratory Corp. of America Holdings, 2.63%, 02/01/20.			1,130		1,130,792
Montefiore Obligated Group, Series 18-C, 5.25%, 11/01/48			797		933,317
PeaceHealth Obligated Group, Series 2018, 4.79%, 11/15/48			107		137,253
SSM Health Care Corp., Series 2018, 3.69%, 06/01/23			1,549		1,627,085
Sutter Health, Series 2018, 3.70%, 08/15/28			185		201,046
UnitedHealth Group, Inc.:
3.50%, 02/15/24			16		16,850
3.75%, 07/15/25			5,467		5,878,264
3.10%, 03/15/26			207		216,369
3.85%, 06/15/28			753		824,346
3.88%, 12/15/28			38		41,838
2.88%, 08/15/29			201		205,146
3.50%, 08/15/39			1,140		1,186,728
5.70%, 10/15/40			460		609,487
5.95%, 02/15/41			50		68,067
4.63%, 11/15/41			579		684,934
3.95%, 10/15/42			1,274		1,377,861
4.75%, 07/15/45			210		255,227
4.25%, 06/15/48			120		137,773
4.45%, 12/15/48			180		212,859
					48,228,303

26 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Hotels, Restaurants & Leisure — 0.2%
McDonald’s Corp.:
3.70%, 01/30/26	USD		1,155	$	1,239,753
6.30%, 03/01/38			205		280,197
3.70%, 02/15/42			446		458,347
3.63%, 05/01/43			258		262,415
4.88%, 12/09/45			120		145,099
4.45%, 03/01/47			320		367,433
4.45%, 09/01/48			290		335,229
3.63%, 09/01/49			2,840		2,870,690
					5,959,163
Household Durables — 0.2%
Lennar Corp., 4.13%, 01/15/22			3,020		3,091,725
Toll Brothers Finance Corp., 5.88%, 02/15/22			2,830		3,010,413
					6,102,138
Household Products — 0.0%
Clorox Co. (The), 3.10%, 10/01/27			240		250,335
Procter & Gamble Co. (The), 0.63%, 10/30/24	EUR		1,150		1,293,091
					1,543,426
Independent Power and Renewable Electricity Producers — 0.0%
NRG Energy, Inc.(b):
3.75%, 06/15/24	USD		124		127,597
4.45%, 06/15/29			400		416,747
					544,344
Industrial Conglomerates — 0.2%
3M Co.:
3.00%, 08/07/25			645		676,638
2.88%, 10/15/27			197		204,700
3.38%, 03/01/29			240		258,166
2.38%, 08/26/29			845		840,489
General Electric Co.:
5.88%, 01/14/38			175		210,417
6.88%, 01/10/39			72		95,252
4.13%, 10/09/42			139		139,087
Honeywell International, Inc.:
1.30%, 02/22/23	EUR		4,815		5,490,876
3.81%, 11/21/47	USD		350		402,888
					8,318,513
Insurance — 0.8%
Allianz Finance II BV, 0.25%, 06/06/23	EUR		2,900		3,202,578
Aon Corp.:
4.50%, 12/15/28	USD		2,865		3,233,604
3.75%, 05/02/29			1,691		1,804,131
Aon plc, 4.75%, 05/15/45			425		499,171
Berkshire Hathaway Finance Corp., 4.25%, 01/15/49			485		574,184
Brighthouse Financial, Inc., 4.70%, 06/22/47			80		71,369
China Reinsurance Finance Corp. Ltd., 3.38%, 03/09/22			500		501,250
Hartford Financial Services Group, Inc. (The), 4.30%, 04/15/43			360		399,671
Heungkuk Life Insurance Co. Ltd., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year +2.47%), 4.48%(a)(d)			400		389,000
Marsh & McLennan Cos., Inc.:
3.50%, 12/29/20			728		739,619
4.05%, 10/15/23			565		601,390
3.50%, 06/03/24			2,194		2,313,888
3.50%, 03/10/25			415		438,723
1.35%, 09/21/26	EUR		695		802,822
4.38%, 03/15/29	USD		1,403		1,586,788
4.35%, 01/30/47			157		180,828
4.20%, 03/01/48			1,156		1,303,335
4.90%, 03/15/49			165		206,695

Security		Par (000)		Value
Insurance (continued)
MetLife, Inc.:
4.13%, 08/13/42	USD		75	$	83,548
4.05%, 03/01/45			55		61,490
Metropolitan Life Global Funding I:
0.00%, 09/23/22	EUR		130		142,078
0.38%, 04/09/24			935		1,033,059
Principal Financial Group, Inc., 3.70%, 05/15/29	USD		545		586,965
Travelers Cos., Inc. (The):
6.25%, 06/15/37			15		21,240
4.60%, 08/01/43			683		839,815
3.75%, 05/15/46			130		142,992
4.00%, 05/30/47			7		8,021
4.10%, 03/04/49			47		54,920
Trinity Acquisition plc, 4.40%, 03/15/26			888		962,986
Willis North America, Inc.:
3.60%, 05/15/24			2,397		2,490,854
3.88%, 09/15/49			110		107,582
					25,384,596
Interactive Media & Services — 0.0%
Baidu, Inc., 4.38%, 05/14/24			755		805,230
Tencent Holdings Ltd., 3.98%, 04/11/29			600		640,444
					1,445,674
Internet & Direct Marketing Retail — 0.2%
Alibaba Group Holding Ltd., 3.60%, 11/28/24			1,170		1,226,277
Amazon.com, Inc.:
2.40%, 02/22/23			3		3,049
3.88%, 08/22/37			1,565		1,800,575
4.95%, 12/05/44			65		86,044
Expedia Group, Inc.:
3.80%, 02/15/28			160		167,452
3.25%, 02/15/30(b)			2,260		2,253,555
					5,536,952
IT Services — 1.3%
Fidelity National Information Services, Inc.:
3.63%, 10/15/20			116		117,547
1.10%, 07/15/24	EUR		3,250		3,691,895
5.00%, 10/15/25	USD		269		305,678
3.00%, 08/15/26			3,510		3,614,069
3.75%, 05/21/29			59		64,002
4.75%, 05/15/48			1,255		1,522,312
Fiserv, Inc.:
4.75%, 06/15/21			751		781,973
3.85%, 06/01/25			660		705,544
3.20%, 07/01/26			3,945		4,082,662
4.20%, 10/01/28			1,597		1,766,603
3.50%, 07/01/29			1,409		1,482,433
1.63%, 07/01/30	EUR		720		843,759
Global Payments, Inc.:
2.65%, 02/15/25	USD		470		472,176
3.20%, 08/15/29			2,545		2,580,862
IBM Credit LLC, 3.45%, 11/30/20			1,135		1,154,793
International Business Machines Corp.:
2.90%, 11/01/21			485		494,315
3.63%, 02/12/24			220		233,311
3.00%, 05/15/24			1,167		1,209,953
3.30%, 05/15/26			4,261		4,493,315
4.70%, 02/19/46			284		344,868
Mastercard, Inc.:
1.10%, 12/01/22	EUR		2,600		2,937,958
2.95%, 11/21/26	USD		611		642,826
2.95%, 06/01/29			2,394		2,511,118
3.65%, 06/01/49			428		484,810

S C H E D U L E S   O F   I N V E S T M E N T S 27

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
IT Services (continued)
PayPal Holdings, Inc.:
2.40%, 10/01/24	USD		325	$	326,762
2.65%, 10/01/26			375		377,583
Total System Services, Inc.:
3.80%, 04/01/21			860		878,071
3.75%, 06/01/23			730		759,722
4.00%, 06/01/23			76		79,778
4.80%, 04/01/26			2,959		3,287,593
Visa, Inc.:
4.15%, 12/14/35			849		1,022,758
4.30%, 12/14/45			520		645,292
					43,916,341
Life Sciences Tools & Services — 0.3%
Agilent Technologies, Inc.:
3.88%, 07/15/23			392		411,967
3.05%, 09/22/26			2,061		2,104,797
2.75%, 09/15/29			970		959,312
Thermo Fisher Scientific, Inc.:
3.65%, 12/15/25			43		46,126
2.95%, 09/19/26			4,300		4,430,148
3.20%, 08/15/27			393		410,835
2.60%, 10/01/29			1,880		1,872,701
5.30%, 02/01/44			20		25,505
					10,261,391
Machinery — 0.0%
Atlas Copco Finance DAC, 0.13%, 09/03/29	EUR		570		607,498
CNH Industrial NV, 3.85%, 11/15/27	USD		190		195,797
Illinois Tool Works, Inc., 0.63%, 12/05/27	EUR		585		654,346
					1,457,641
Media — 1.1%
Charter Communications Operating LLC:
4.46%, 07/23/22	USD		20		21,057
4.50%, 02/01/24			1,297		1,393,397
4.91%, 07/23/25			1,195		1,310,862
4.20%, 03/15/28			834		877,086
5.05%, 03/30/29			197		220,398
6.38%, 10/23/35			2,246		2,719,536
6.48%, 10/23/45			3,795		4,617,857
5.38%, 05/01/47			37		40,314
5.75%, 04/01/48			335		381,898
Comcast Corp.:
3.30%, 10/01/20			4,134		4,190,284
3.15%, 03/01/26			1,795		1,879,517
2.35%, 01/15/27			15		14,936
3.15%, 02/15/28			418		435,667
4.15%, 10/15/28			289		324,179
4.25%, 10/15/30			540		614,246
4.25%, 01/15/33			395		454,280
7.05%, 03/15/33			14		20,159
4.20%, 08/15/34			343		392,000
4.40%, 08/15/35			803		935,343
6.50%, 11/15/35			550		770,597
3.20%, 07/15/36			3,274		3,349,555
4.60%, 10/15/38			69		82,428
4.50%, 01/15/43			324		379,284
4.75%, 03/01/44			24		29,139
3.40%, 07/15/46			1,140		1,165,787
3.97%, 11/01/47			249		273,455
4.00%, 03/01/48			6		6,637
4.70%, 10/15/48			702		859,559
4.00%, 11/01/49			70		77,743
4.95%, 10/15/58			4		5,084

Security		Par (000)		Value
Media (continued)
Cox Communications, Inc.(b):
3.15%, 08/15/24	USD		4,635	$	4,746,713
3.35%, 09/15/26			284		293,329
Discovery Communications LLC:
5.00%, 09/20/37			444		477,301
4.95%, 05/15/42			450		472,735
5.20%, 09/20/47			334		365,213
Fox Corp., 4.03%, 01/25/24(b)			495		526,318
Historic TW, Inc., 6.63%, 05/15/29			190		240,326
MMS USA Financing, Inc., 0.63%, 06/13/25	EUR		800		875,055
TCI Communications, Inc., 7.88%, 02/15/26	USD		291		380,406
Time Warner Cable LLC:
5.00%, 02/01/20			1,291		1,301,436
5.50%, 09/01/41			613		660,080
4.50%, 09/15/42			132		129,894
					38,311,090
Metals & Mining — 0.3%
Anglo American Capital plc(b):
3.63%, 09/11/24			2,686		2,774,834
4.75%, 04/10/27			1,112		1,199,168
4.50%, 03/15/28			200		212,325
ArcelorMittal:
3.60%, 07/16/24			146		147,487
6.13%, 06/01/25			16		18,004
4.55%, 03/11/26			495		517,920
Barrick Gold Corp., 5.25%, 04/01/42			465		564,152
Barrick PD Australia Finance Pty. Ltd., 5.95%, 10/15/39			90		116,032
BHP Billiton Finance USA Ltd.:
4.13%, 02/24/42			253		291,346
5.00%, 09/30/43			237		305,976
Chalco Hong Kong Investment Co. Ltd., 4.88%, 09/07/21			300		308,202
HBIS Group Hong Kong Co. Ltd., 4.25%, 04/07/20			200		199,875
Minera Mexico SA de CV, 4.50%, 01/26/50(b)			836		818,151
Newmont Goldcorp Corp.:
2.80%, 10/01/29			475		469,432
4.88%, 03/15/42			55		64,854
Novolipetsk Steel Via Steel Funding DAC, 4.70%, 05/30/26(b)			238		255,032
Nucor Corp., 5.20%, 08/01/43			303		378,076
Teck Resources Ltd., 6.25%, 07/15/41			161		178,941
					8,819,807
Multiline Retail — 0.0%
Dollar General Corp.:
3.88%, 04/15/27			177		189,707
4.13%, 05/01/28			46		50,299
					240,006
Multi-Utilities — 0.2%
Ameren Illinois Co., 3.80%, 05/15/28			868		964,812
Berkshire Hathaway Energy Co., 5.15%, 11/15/43			85		107,497
Black Hills Corp., 3.95%, 01/15/26			465		491,487
Consumers Energy Co.:
3.38%, 08/15/23			14		14,667
3.80%, 11/15/28			81		90,177
3.95%, 07/15/47			155		176,766
4.05%, 05/15/48			625		724,730
3.75%, 02/15/50			694		774,539
3.10%, 08/15/50			425		428,016
DTE Energy Co., Series D, 3.70%, 08/01/23			730		765,452
Engie SA, 1.38%, 06/21/39	EUR		700		831,379

28 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Multi-Utilities (continued)
NiSource, Inc., 3.49%, 05/15/27	USD		630	$	660,692
					6,030,214
Oil, Gas & Consumable Fuels — 3.8%
Abu Dhabi Crude Oil Pipeline LLC, 4.60%, 11/02/47			500		581,250
Andeavor Logistics LP, 5.20%, 12/01/47			40		43,199
Antero Resources Corp., 5.38%, 11/01/21			3,020		2,914,300
Boardwalk Pipelines LP, 4.80%, 05/03/29			136		144,435
BP Capital Markets America, Inc.:
2.75%, 05/10/23			865		883,082
3.80%, 09/21/25			1,761		1,899,838
3.12%, 05/04/26			595		620,348
3.94%, 09/21/28			106		117,466
BP Capital Markets plc, 1.53%, 09/26/22	EUR		2,500		2,854,443
Cheniere Corpus Christi Holdings LLC, 7.00%, 06/30/24	USD		2,820		3,241,026
Chevron Corp.:
2.10%, 05/16/21			105		105,405
2.36%, 12/05/22			20		20,272
3.19%, 06/24/23			40		41,703
2.90%, 03/03/24			496		514,637
Cimarex Energy Co.:
4.38%, 06/01/24			608		638,866
3.90%, 05/15/27			1,018		1,036,492
4.38%, 03/15/29			30		31,572
Concho Resources, Inc., 3.75%, 10/01/27			1,018		1,058,070
Continental Resources, Inc., 3.80%, 06/01/24			1,060		1,080,198
Devon Energy Corp., 5.85%, 12/15/25			1,180		1,402,547
Diamondback Energy, Inc., 4.75%, 11/01/24			435		445,331
Enbridge Energy Partners LP, 5.50%, 09/15/40			120		141,752
Enbridge, Inc.:
3.70%, 07/15/27			1,156		1,226,676
4.50%, 06/10/44			70		76,747
(LIBOR USD 3 Month +3.42%), 5.50%, 07/15/77(a)			1,230		1,237,959
Energen Corp., 4.63%, 09/01/21			950		977,312
Energy Transfer Operating LP:
5.88%, 01/15/24			1,161		1,290,636
4.90%, 02/01/24			270		290,793
5.50%, 06/01/27			888		1,004,590
5.80%, 06/15/38			285		326,154
6.50%, 02/01/42			2,432		2,917,138
5.95%, 10/01/43			29		32,821
5.15%, 03/15/45			169		177,382
6.13%, 12/15/45			265		310,896
5.30%, 04/15/47			485		521,692
Enterprise Products Operating LLC:
3.75%, 02/15/25			95		101,218
3.13%, 07/31/29			63		64,512
Series D, 6.88%, 03/01/33			80		109,826
Series H, 6.65%, 10/15/34			45		62,059
7.55%, 04/15/38			100		147,443
6.13%, 10/15/39			8		10,389
5.95%, 02/01/41			233		298,037
4.45%, 02/15/43			1,741		1,903,474
4.85%, 03/15/44			214		245,688
5.10%, 02/15/45			320		376,744
4.25%, 02/15/48			22		23,776
EOG Resources, Inc.:
4.15%, 01/15/26			300		331,788
3.90%, 04/01/35			75		83,520
Exxon Mobil Corp.:
2.22%, 03/01/21			4		4,021
1.90%, 08/16/22			117		117,509

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
2.71%, 03/06/25	USD		1,824	$	1,883,567
2.28%, 08/16/26			1,732		1,745,529
3.00%, 08/16/39			10		10,002
3.57%, 03/06/45			70		76,073
3.10%, 08/16/49			1,435		1,440,683
Hess Corp., 6.00%, 01/15/40			319		369,539
Kinder Morgan Energy Partners LP:
4.25%, 09/01/24			402		431,045
6.50%, 02/01/37			560		695,548
6.95%, 01/15/38			929		1,212,732
6.38%, 03/01/41			116		142,200
5.00%, 03/01/43			750		823,007
5.50%, 03/01/44			191		220,257
Kinder Morgan, Inc.:
5.00%, 02/15/21(b)			173		178,693
3.15%, 01/15/23			3,274		3,351,283
4.30%, 03/01/28			1,961		2,126,728
5.05%, 02/15/46			1,099		1,218,863
Marathon Petroleum Corp.:
4.75%, 12/15/23			800		867,779
5.13%, 12/15/26			67		75,309
5.85%, 12/15/45			345		392,485
MPLX LP:
(LIBOR USD 3 Month + 0.90%), 3.00%, 09/09/21(a)			1,355		1,359,499
(LIBOR USD 3 Month + 1.10%), 3.20%, 09/09/22(a)			1,845		1,850,821
4.88%, 12/01/24			347		380,913
5.25%, 01/15/25(b)			200		211,112
4.00%, 02/15/25			2,336		2,468,150
4.13%, 03/01/27			3,945		4,160,314
4.25%, 12/01/27(b)			5,403		5,716,321
NGPL PipeCo LLC, 4.38%, 08/15/22(b)			2,768		2,869,323
Northwest Pipeline LLC, 4.00%, 04/01/27			2,085		2,199,539
Occidental Petroleum Corp.:
4.85%, 03/15/21			95		98,242
2.60%, 08/13/21			1,372		1,380,937
3.13%, 02/15/22			20		20,314
2.60%, 04/15/22			150		150,759
2.70%, 08/15/22			3,086		3,114,716
2.70%, 02/15/23			860		864,563
2.90%, 08/15/24			730		735,463
3.50%, 06/15/25			94		96,642
3.50%, 08/15/29			901		913,795
0.00%, 10/10/36(f)			5,545		2,738,564
4.40%, 04/15/46			791		805,677
Plains All American Pipeline LP, 3.65%, 06/01/22.			44		45,130
Rockies Express Pipeline LLC, 4.95%, 07/15/29(b)			2,907		2,892,981
Sabine Pass Liquefaction LLC:
5.63%, 04/15/23(e)			2,044		2,220,953
5.75%, 05/15/24			2,985		3,327,117
5.63%, 03/01/25			4,402		4,942,732
5.88%, 06/30/26			1,550		1,775,988
Santos Finance Ltd., 5.25%, 03/13/29			600		648,681
Spectra Energy Partners LP:
3.38%, 10/15/26			21		21,734
4.50%, 03/15/45			1,420		1,544,408
Suncor Energy, Inc.:
3.60%, 12/01/24			589		621,250
6.80%, 05/15/38			420		588,916
6.50%, 06/15/38			39		53,704
4.00%, 11/15/47			179		192,309

S C H E D U L E S   O F   I N V E S T M E N T S 29

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Sunoco Logistics Partners Operations LP:
5.35%, 05/15/45	USD		823	$	883,041
5.40%, 10/01/47			72		78,560
Texas Eastern Transmission LP(b):
3.50%, 01/15/28			1,318		1,370,515
4.15%, 01/15/48			525		552,823
Total Capital Canada Ltd., 2.75%, 07/15/23			40		41,106
Total Capital International SA:
3.70%, 01/15/24			2,205		2,352,814
2.43%, 01/10/25			490		495,513
1.54%, 05/31/39	EUR		300		373,786
TransCanada PipeLines Ltd.:
4.88%, 01/15/26	USD		2,605		2,924,255
4.25%, 05/15/28			820		906,464
4.63%, 03/01/34			94		106,797
5.85%, 03/15/36			213		262,600
4.75%, 05/15/38			340		387,879
6.10%, 06/01/40			1,004		1,295,824
5.10%, 03/15/49			6		7,204
Transcontinental Gas Pipe Line Co. LLC:
7.85%, 02/01/26			1,523		1,931,771
4.00%, 03/15/28			1,200		1,283,236
4.60%, 03/15/48			470		520,437
Valero Energy Corp.:
3.40%, 09/15/26			1,297		1,326,368
4.35%, 06/01/28			49		53,190
6.63%, 06/15/37			85		109,987
Western Midstream Operating LP:
5.38%, 06/01/21			3,320		3,414,230
4.00%, 07/01/22			520		526,284
4.65%, 07/01/26			84		82,997
4.50%, 03/01/28			350		337,961
Williams Cos., Inc. (The):
3.70%, 01/15/23			155		160,290
4.55%, 06/24/24			594		639,326
3.75%, 06/15/27			478		493,720
Series A, 7.50%, 01/15/31			495		650,357
5.75%, 06/24/44			531		612,773
					126,542,029
Paper & Forest Products — 0.2%
Georgia-Pacific LLC:
5.40%, 11/01/20(b)			1,945		2,011,941
3.73%, 07/15/23(b)			1,054		1,107,103
3.60%, 03/01/25(b)			530		562,205
7.38%, 12/01/25			1,203		1,524,390
7.75%, 11/15/29			300		428,235
8.88%, 05/15/31			165		261,408
Suzano Austria GmbH:
6.00%, 01/15/29			258		278,511
7.00%, 03/16/47(b)			238		271,231
					6,445,024
Pharmaceuticals — 1.1%
Allergan Finance LLC:
3.25%, 10/01/22			227		231,851
4.63%, 10/01/42			98		101,677
Allergan Funding SCS:
3.80%, 03/15/25			3,278		3,432,488
4.55%, 03/15/35			1,661		1,763,249
Bayer US Finance II LLC(b):
3.88%, 12/15/23			805		840,905
3.38%, 07/15/24			209		213,771
2.85%, 04/15/25			1,500		1,445,289
Bayer US Finance LLC, 3.38%, 10/08/24(b)			327		335,068

Security		Par (000)		Value
Pharmaceuticals (continued)
Bristol-Myers Squibb Co.(b):
3.20%, 06/15/26	USD		3,867	$	4,056,928
3.40%, 07/26/29			450		480,655
4.13%, 06/15/39			5		5,666
Eli Lilly &Co., 4.15%, 03/15/59			990		1,165,666
GlaxoSmithKline Capital plc:
2.88%, 06/01/22			393		401,519
3.38%, 06/01/29			1,200		1,287,579
GlaxoSmithKline Capital, Inc., 3.88%, 05/15/28			735		811,140
Johnson &Johnson, 2.45%, 03/01/26			275		279,822
Merck &Co., Inc.:
3.60%, 09/15/42			200		220,407
3.70%, 02/10/45			377		425,173
Merck Financial Services GmbH, 0.01%, 12/15/23	EUR		3,800		4,150,880
Mylan, Inc.:
5.40%, 11/29/43	USD		245		257,757
5.20%, 04/15/48			390		412,856
Novartis Capital Corp.:
2.40%, 09/21/22			100		101,584
3.40%, 05/06/24			971		1,031,995
3.00%, 11/20/25			498		524,176
3.10%, 05/17/27			606		643,973
4.40%, 05/06/44			205		253,583
Pfizer,Inc.:
1.95%, 06/03/21			457		457,565
4.00%, 12/15/36			428		489,987
4.30%, 06/15/43			15		17,578
4.40%, 05/15/44			56		66,687
4.13%, 12/15/46			10		11,604
Roche Finance Europe BV,0.50%, 02/27/23	EUR		2,400		2,678,138
Shire Acquisitions Investments Ireland DAC:
2.88%, 09/23/23	USD		482		491,375
3.20%, 09/23/26			2,934		3,027,292
Takeda Pharmaceutical Co. Ltd.(b):
4.40%, 11/26/23			810		872,347
5.00%, 11/26/28			2,635		3,084,517
Wyeth LLC, 5.95%, 04/01/37			1,414		1,920,691
					37,993,438
Real Estate Management & Development — 0.1%
Celulosa Arauco y Constitucion SA, 4.25%, 04/30/29(b)			200		208,121
Esic Sukuk Ltd., 3.94%, 07/30/24			600		596,250
Franshion Brilliant Ltd., 4.25%, 07/23/29			400		396,736
Longfor Group Holdings Ltd., 3.95%, 09/16/29			200		196,375
NWD MTN Ltd., 4.13%, 07/18/29			500		495,469
					1,892,951
Road & Rail — 0.7%
Burlington Northern Santa Fe LLC:
3.00%, 04/01/25			145		151,236
5.75%, 05/01/40			1,067		1,435,489
5.05%, 03/01/41			400		500,310
4.95%, 09/15/41			27		33,495
4.40%, 03/15/42			40		46,939
4.55%, 09/01/44			355		426,191
4.15%, 04/01/45			1,222		1,405,903
4.05%, 06/15/48			270		309,738
CSX Corp.:
3.80%, 03/01/28			37		40,314
4.25%, 03/15/29			445		502,467
6.00%, 10/01/36			218		281,236
6.15%, 05/01/37			121		159,111
3.80%, 11/01/46			170		178,587
4.30%, 03/01/48			1,078		1,213,749

30 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Road & Rail (continued)
4.75%, 11/15/48	USD		455	$	548,603
4.50%, 03/15/49			17		19,988
3.35%, 09/15/49			698		681,902
4.25%, 11/01/66			705		747,812
GLP China Holdings Ltd., 4.97%, 02/26/24			300		315,938
Norfolk Southern Corp.:
3.25%, 12/01/21			56		57,166
2.90%, 02/15/23			166		169,516
3.65%, 08/01/25			1,165		1,245,194
2.90%, 06/15/26			1,245		1,284,236
3.95%, 10/01/42			239		258,183
4.45%, 06/15/45			23		26,470
3.94%, 11/01/47			39		42,344
4.10%, 05/15/49			318		355,586
4.05%, 08/15/52			772		843,600
Penske Truck Leasing Co. LP(b):
4.45%, 01/29/26			95		102,588
3.40%, 11/15/26			376		384,288
4.20%, 04/01/27			1,207		1,284,393
Ryder System, Inc.:
3.45%, 11/15/21			199		203,693
2.80%, 03/01/22			53		53,672
2.50%, 09/01/22			310		312,189
3.75%, 06/09/23			131		137,436
Union Pacific Corp.:
3.15%, 03/01/24			910		945,036
2.75%, 03/01/26			1,097		1,114,151
3.38%, 02/01/35			2,123		2,191,830
3.60%, 09/15/37			1,281		1,350,309
3.55%, 08/15/39			24		25,127
4.50%, 09/10/48			91		108,585
3.80%, 10/01/51			80		85,544
3.88%, 02/01/55			1,224		1,276,851
3.95%, 08/15/59			23		24,403
					22,881,398
Semiconductors & Semiconductor Equipment — 1.3%
Analog Devices, Inc.:
3.90%, 12/15/25			163		175,295
3.50%, 12/05/26			320		335,137
Applied Materials, Inc.:
3.30%, 04/01/27			1,938		2,062,170
5.10%, 10/01/35			935		1,185,040
5.85%, 06/15/41			170		232,020
4.35%, 04/01/47			1,417		1,729,115
Broadcom Corp.:
2.38%, 01/15/20			6,086		6,085,615
3.88%, 01/15/27			4,015		4,031,943
Broadcom, Inc., 4.25%, 04/15/26(b)			2,137		2,207,323
Intel Corp.:
4.80%, 10/01/41			605		763,013
4.10%, 05/19/46			8		9,325
KLA Corp., 4.10%, 03/15/29			1,441		1,589,808
KLA-Tencor Corp., 5.00%, 03/15/49			932		1,147,518
Lam Research Corp.:
2.75%, 03/15/20			1,081		1,082,674
3.75%, 03/15/26			1,690		1,804,821
4.88%, 03/15/49			815		996,359
NVIDIA Corp., 3.20%, 09/16/26			3,925		4,126,659
NXP BV(b):
4.13%, 06/01/21			4,312		4,424,234
3.88%, 09/01/22			770		794,645
4.63%, 06/01/23			288		306,565
4.88%, 03/01/24			2,040		2,211,152
3.88%, 06/18/26			113		119,002

Security		Par (000)		Value
Semiconductors & Semiconductor Equipment (continued)
5.55%, 12/01/28	USD		26	$	30,164
4.30%, 06/18/29			1,074		1,147,352
QUALCOMM, Inc.:
4.65%, 05/20/35			486		572,547
4.80%, 05/20/45			9		10,748
4.30%, 05/20/47			535		598,059
Texas Instruments, Inc.:
2.75%, 03/12/21			260		263,093
2.25%, 05/01/23			460		465,007
2.90%, 11/03/27			20		21,001
2.25%, 09/04/29			960		945,104
3.88%, 03/15/39			20		23,088
4.15%, 05/15/48			405		496,329
					41,991,925
Software — 0.6%
Autodesk, Inc., 3.50%, 06/15/27			3,442		3,556,255
Microsoft Corp.:
2.70%, 02/12/25			11		11,404
3.50%, 02/12/35			2,533		2,799,355
4.20%, 11/03/35			500		598,059
3.45%, 08/08/36			2,691		2,974,673
3.50%, 11/15/42			10		11,001
3.75%, 02/12/45			29		33,217
4.45%, 11/03/45			147		185,642
3.70%, 08/08/46			3,020		3,437,136
3.95%, 08/08/56			11		13,028
4.50%, 02/06/57			20		25,980
Oracle Corp.:
2.50%, 10/15/22			57		57,848
3.40%, 07/08/24			300		316,344
2.65%, 07/15/26			1,746		1,782,712
3.25%, 05/15/30			152		161,369
3.90%, 05/15/35			1,559		1,721,356
3.80%, 11/15/37			39		42,460
5.38%, 07/15/40			241		313,405
4.13%, 05/15/45			43		48,681
4.00%, 07/15/46			1,594		1,782,290
SAP SE:
0.75%, 12/10/24	EUR		500		567,447
1.63%, 03/10/31			200		246,972
					20,686,634
Specialty Retail — 0.2%
Home Depot, Inc. (The):
2.80%, 09/14/27	USD		296		309,636
3.90%, 12/06/28			272		305,607
2.95%, 06/15/29			599		628,613
5.88%, 12/16/36			822		1,136,788
5.95%, 04/01/41			193		276,295
4.20%, 04/01/43			240		281,953
4.88%, 02/15/44			100		128,912
4.25%, 04/01/46			122		146,107
3.90%, 06/15/47			80		91,591
3.50%, 09/15/56			441		469,182
Lowe’s Cos., Inc.:
4.38%, 09/15/45			1,200		1,325,947
4.05%, 05/03/47			130		138,764
					5,239,395
Technology Hardware, Storage &Peripherals — 0.3%
Apple, Inc.:
1.00%, 11/10/22	EUR		2,400		2,714,959
3.00%, 02/09/24	USD		1,168		1,217,026
3.35%, 02/09/27			123		131,502
3.85%, 05/04/43			5,147		5,770,993

S C H E D U L E S   O F   I N V E S T M E N T S 31

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Technology Hardware, Storage &Peripherals (continued)
3.45%, 02/09/45	USD		601	$	637,019
4.38%, 05/13/45			2		2,421
4.65%, 02/23/46			110		138,314
Dell International LLC, 8.35%, 07/15/46(b)			220		290,168
Hewlett Packard Enterprise Co.(e):
3.60%, 10/15/20			15		15,193
4.40%, 10/15/22			170		180,080
HP, Inc., 3.75%, 12/01/20			19		19,312
Seagate HDD Cayman, 4.25%, 03/01/22			149		153,872
					11,270,859
Textiles, Apparel & Luxury Goods — 0.1%
LVMH Moet Hennessy Louis Vuitton SE, 0.13%, 02/28/23	EUR		2,300		2,525,646
Thrifts &Mortgage Finance — 0.2%
BPCE SA(b):
3.00%, 05/22/22	USD		1,986		2,015,290
2.70%, 10/01/29			3,302		3,279,971
					5,295,261
Tobacco — 0.7%
Altria Group, Inc.:
1.00%, 02/15/23	EUR		2,300		2,549,186
4.40%, 02/14/26	USD		1,880		2,010,376
4.80%, 02/14/29			1,654		1,811,839
5.80%, 02/14/39			49		56,749
4.50%, 05/02/43			608		609,856
5.38%, 01/31/44			1,963		2,182,133
6.20%, 02/14/59			215		252,091
BAT Capital Corp., 3.22%, 09/06/26			645		636,871
BAT International Finance plc:
3.95%, 06/15/25(b)			2,520		2,623,368
3.13%, 03/06/29	EUR		815		998,445
Philip Morris International, Inc.:
2.50%, 08/22/22	USD		561		566,329
2.88%, 05/01/24			1,239		1,270,558
4.50%, 03/20/42			245		271,979
Reynolds American, Inc.:
4.45%, 06/12/25			5,965		6,361,972
5.85%, 08/15/45			1,205		1,333,424
					23,535,176
Trading Companies & Distributors — 0.0%
GATX Corp., 2.60%, 03/30/20			1,182		1,183,114
Transportation Infrastructure — 0.0%
Adani Ports & Special Economic Zone Ltd., 4.38%, 07/03/29			600		624,375
Wireless Telecommunication Services — 0.2%
Sprint Spectrum Co. LLC, 3.36%, 09/20/21(b)(e)			2,400		2,408,498
Vodafone Group plc:
3.75%, 01/16/24			835		879,223
4.13%, 05/30/25			723		780,656
4.38%, 05/30/28			118		130,331
6.15%, 02/27/37			23		29,006
5.00%, 05/30/38			75		85,705
4.38%, 02/19/43			387		399,789
5.25%, 05/30/48			1,885		2,184,969
5.13%, 06/19/59			66		75,586
					6,973,763
Total Corporate Bonds — 39.5% (Cost: $1,263,973,826)					1,323,089,669

Security		Par (000)		Value
Foreign Agency Obligations — 0.7%
China — 0.0%
China Minmetals Corp., (US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.72%), 3.75%(a)(d)	USD		200	$	200,000
Colombia — 0.0%
Ecopetrol SA, 7.38%, 09/18/43			219		293,255
Empresas Publicas de Medellin ESP, 4.25%, 07/18/29(b)			308		322,476
					615,731
India — 0.0%
Power Finance Corp. Ltd., 4.50%, 06/18/29			903		943,353
Rural Electrification Corp. Ltd., 4.63%, 03/22/28			300		314,812
					1,258,165
Indonesia — 0.1%
Indonesia Asahan Aluminium Persero PT, 5.71%, 11/15/23			800		882,250
Pertamina Persero PT, 4.70%, 07/30/49			200		207,500
Perusahaan Listrik Negara PT, 4.88%, 07/17/49			700		752,500
Perusahaan Penerbit SBSN Indonesia III, 4.40%, 03/01/28			200		218,750
					2,061,000
Mexico — 0.4%
Petroleos Mexicanos:
6.38%, 02/04/21			602		628,338
(LIBOR USD 3 Month +3.65%), 5.79%, 03/11/22(a)			116		120,627
6.88%, 08/04/26			499		536,425
6.49%, 01/23/27(b)			245		255,412
6.50%, 03/13/27			8,278		8,599,549
5.35%, 02/12/28			669		640,149
7.69%, 01/23/50(b)			2,447		2,545,064
					13,325,564
Netherlands — 0.1%
TenneT Holding BV, 1.25%, 10/24/33	EUR		1,065		1,260,827
Norway — 0.1%
Telenor ASA:
0.00%, 09/25/23			410		448,756
0.75%, 05/31/26			2,725		3,080,555
					3,529,311
Total Foreign Agency Obligations — 0.7% (Cost: $21,920,111)					22,250,598
Foreign Government Obligations — 2.5%
Colombia — 0.3%
Republic of Colombia:
10.00%, 07/24/24	COP		6,505,600		2,250,283
6.25%, 11/26/25			4,760,500		1,424,333
3.88%, 04/25/27	USD		7,542		8,003,948
					11,678,564
France — 0.3%
Republic of France, 1.75%, 05/25/66(b)	EUR		6,098		9,292,358
Hungary — 0.1%
Republic of Hungary, 5.38%, 03/25/24	USD		2,860		3,228,225
Indonesia — 0.3%
Republic of Indonesia:
4.10%, 04/24/28			1,130		1,219,694

32 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Indonesia (continued)
8.25%, 05/15/29	IDR		51,247,000	$	3,841,833
6.63%, 05/15/33			5,775,000		368,591
8.38%, 03/15/34			27,149,000		2,014,898
7.50%, 06/15/35			7,377,000		510,408
8.38%, 04/15/39			45,653,000		3,372,115
					11,327,539
Mexico — 0.6%
United Mexican States:
6.50%, 06/09/22	MXN		675		3,398,935
8.00%, 12/07/23			210		1,113,991
8.00%, 09/05/24			166		886,371
10.00%, 12/05/24			499		2,886,339
4.15%, 03/28/27	USD		11,841		12,545,539
					20,831,175
Panama — 0.1%
Republic of Panama, 3.88%, 03/17/28			3,312		3,598,695
Peru — 0.1%
Republic of Peru, 4.13%, 08/25/27			2,903		3,257,710
Philippines — 0.2%
Republic of the Philippines, 3.00%, 02/01/28			5,080		5,324,043
Russia — 0.2%
Russian Federation, 8.50%, 09/17/31	RUB		475,145		8,191,938
South Africa — 0.1%
Republic of South Africa:
4.85%, 09/30/29	USD		520		518,700
5.75%, 09/30/49			1,209		1,205,071
					1,723,771
United Arab Emirates — 0.1%
Emirate of Abu Dhabi United Arab Emirates(b):
2.13%, 09/30/24			1,080		1,073,250
2.50%, 09/30/29			1,214		1,205,805
					2,279,055
Uruguay — 0.1%
Oriental Republic of Uruguay, 4.38%, 10/27/27			2,680		2,945,488
Total Foreign Government Obligations — 2.5% (Cost: $81,826,250)					83,678,561
Municipal Bonds — 3.9%
Aldine Independent School District (Permanent School Fund Guarantee Program (The)), Series 2019F-1, GO, 5.00%, 02/15/43			220		270,248
American Municipal Power, Inc. (Combined Hydroelectric Project);
Series 2010B, RB, 7.83%, 02/15/41			350		558,145
Series 2009B, RB, 6.45%, 02/15/44			875		1,263,080
Bay Area Toll Authority, Series 2010S-1, RB, 7.04%, 04/01/50			2,650		4,444,156
Berks County Industrial Development Authority (Tower Health Project), Series 2017, RB, 5.00%, 11/01/47			420		484,273
Central Puget Sound Regional Transit Authority, Series 2015S-1, RB, 5.00%, 11/01/50			420		492,475
City of Atlanta, Series 2015, RB, 5.00%, 11/01/40			200		233,732
City of Aurora;
Series 2016, RB, 5.00%, 08/01/41			840		1,011,797
Series 2016, RB, 5.00%, 08/01/46			340		402,645

Security		Par (000)		Value
Municipal Bonds (continued)
City of Cleveland, Series 2018, GO, 5.00%, 12/01/43	USD		1,255	$	1,524,336
City of San Antonio Electric & Gas Systems, Series 2010A, RB, 5.81%, 02/01/41			815		1,171,791
Colorado Health Facilities Authority (CommonSpirit Health), Series 2019A-2, RB, 5.00%, 08/01/44			2,740		3,256,846
Commonwealth Financing Authority, Series 2019A, RB, 3.81%, 06/01/41			2,400		2,655,408
Commonwealth of Massachusetts;
Series 2017F, GO, 5.00%, 11/01/40			1,350		1,646,257
Series 2018A, GO, 5.00%, 01/01/46			1,595		1,931,673
Series 2017F, GO, 5.00%, 11/01/46			2,575		3,109,415
Series 2018A, GO, 5.00%, 01/01/48			1,090		1,318,377
Series 2019H, GO, 2.90%, 09/01/49			930		907,196
County of Miami-Dade, Series 2019E, RB, 2.53%, 10/01/30			1,215		1,201,574
District of Columbia, Series 2016A, GO, 5.00%, 06/01/41			2,925		3,494,029
Dutchess County Local Development Corp. (Health Quest Systems, Inc. Project), Series 2016B, RB, 5.00%, 07/01/46			805		938,815
Health & Educational Facilities Authority of the State of Missouri, Series 2016A, RB, 3.65%, 01/15/46			140		154,445
Long Island Power Authority, Series 2017, RB, 5.00%, 09/01/47			1,145		1,369,855
Los Angeles Community College District, Series 2010E, GO, 6.60%, 08/01/42			800		1,251,536
Los Angeles Department of Water & Power System (Water System Revenue Bonds), Series 2010A, RB, 6.60%, 07/01/50			415		679,741
Los Angeles Unified School District, Series 2010I, GO, 6.76%, 07/01/34			1,580		2,220,595
Louisiana Public Facilities Authority, Series 2018E, RB, 5.00%, 07/01/48			290		344,694
Maryland Community Development Administration, Series 2018A, RB, 3.85%, 09/01/33			370		406,190
Massachusetts Development Finance Agency;
Series 2018J-2, RB, 5.00%, 07/01/43			210		251,603
Series 2018J-2, RB, 5.00%, 07/01/48			600		713,574
Massachusetts Housing Finance Agency;
Series 2014B, RB, 4.50%, 12/01/39			220		229,625
Series 2014B, RB, 4.60%, 12/01/44			225		241,119
Series 2015A, RB, 4.50%, 12/01/48			275		290,197
Massachusetts Port Authority, Series 2016B, RB, 5.00%, 07/01/43			380		444,361
Metropolitan Atlanta Rapid Transit Authority, Series 2015A, RB, 5.00%, 07/01/41			580		682,828
Metropolitan Government Nashville & Davidson County Health & Educational Facilities Board (Vanderbilt University Medical Center), Series 2016A, RB, 5.00%, 07/01/40			210		244,910
Metropolitan Transportation Authority;
Series 2010A, RB, 6.67%, 11/15/39			200		293,284
Series 2019C, RB, 5.00%, 11/15/40			640		792,864
Series 2010E, RB, 6.81%, 11/15/40			610		887,910
Series 2019C, RB, 5.00%, 11/15/42			760		937,338
Series 2019C, RB, 5.00%, 11/15/43			540		674,590
Series 2019B, RB, 5.00%, 11/15/52			730		883,592
Michigan State Housing Development Authority;
Series 2018B, RB, 3.55%, 10/01/33			250		268,360
Series 2018A, RB, 4.00%, 10/01/43			240		260,174
Series 2018A, RB, 4.05%, 10/01/48			110		118,338

S C H E D U L E S   O F   I N V E S T M E N T S 33

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Municipal Bonds (continued)
Series 2018A, RB, 4.15%, 10/01/53	USD		560	$	604,122
Municipal Electric Authority of Georgia (Plant Vogtle Units 3&4 Units Project), Series 2010A, RB, 6.64%, 04/01/57			321		440,727
New Jersey Transportation Trust Fund Authority;
Series 2010C, RB, 5.75%, 12/15/28			720		833,342
Series 2009B, RB, 6.88%, 12/15/39			1,260		1,263,692
New Jersey Turnpike Authority, Series 2009F, RB, 7.41%, 01/01/40			496		794,875
New York City Housing Development Corp.;
Series 2018C-1-A, RB, 3.70%, 11/01/38			260		274,459
Series 2018C-1-B, RB, 3.85%, 11/01/43			780		809,305
Series 2014C-1-A, RB, 4.20%, 11/01/44			3,490		3,645,794
Series 2018C-1-A, RB, 4.00%, 11/01/53			830		873,608
New York City Transitional Finance Authority Future Tax Secured;
Series 2014A, Sub-Series A-2, RB, 3.65%, 11/01/24			895		948,602
Series 2018, Sub-Series C-4, RB, 3.55%, 05/01/25			1,205		1,290,953
Series 2014A, Sub-Series A-2, RB, 3.75%, 11/01/25			895		949,998
New York City Water & Sewer System;
Series 2010GG, RB, 5.72%, 06/15/42			1,720		2,475,751
Series 2020AA, RB, 5.38%, 06/15/43(g)			2,725		2,858,607
Series 2020AA, RB, 5.38%, 06/15/43			1,395		1,458,291
Series 2011AA, RB, 5.44%, 06/15/43			410		574,562
Series 2011EE, RB, 5.50%, 06/15/43(g)			4,935		5,184,760
Series 2011CC, RB, 5.88%, 06/15/44			330		491,053
Series 2018CC, RB, 5.00%, 06/15/48			1,250		1,499,375
New York State Dormitory Authority, Series 2010H, RB, 5.39%, 03/15/40			320		425,434
New York Transportation Development Corp. (Delta Air Lines, Inc. Laguardia Airport Terminals C&D Redevelopment Project), Series 2018, RB, 5.00%, 01/01/30			1,365		1,640,157
Northeast Ohio Regional Sewer District, Series 2014, RB, 5.00%, 11/15/49			3,045		3,521,360
Pennsylvania Turnpike Commission, Series 2017B, Sub-Series B-1, RB, 5.25%, 06/01/47			2,120		2,505,713
Permanent University Fund - University of Texas System, Series 2017A, RB, 3.38%, 07/01/47			1,285		1,404,081
Port Authority of New York & New Jersey, Series 181, RB, 4.96%, 08/01/46			1,535		2,025,985
Port of Seattle, Series 2018A, RB, 5.00%, 05/01/43			220		257,743
Public Finance Authority (Denver International Airport Great Hall Project), Series 2017, RB, 5.00%, 09/30/49			1,070		1,089,035
Rutgers The State University of New Jersey, Series 2010H, RB, 5.67%,05/01/40			1,770		2,308,770
Salt River Project Agricultural Improvement & Power District, Series 2015A, RB, 5.00%, 12/01/45			600		697,296
San Francisco City & County Airport Comm- San Francisco International Airport, Series 2019F, RB, 5.00%, 05/01/50			580		712,924
San Jose Redevelopment Agency Successor Agency, Series 2017A-T, 3.18%, 08/01/26			445		473,048
South Carolina Public Service Authority, Series 2016D, RB, 2.39%, 12/01/23			1,095		1,119,955

Security		Par (000)		Value
Municipal Bonds (continued)
State of California;
Series 2018, GO, 4.60%, 04/01/38	USD		2,870	$	3,251,681
Series 2009, GO, 7.55%, 04/01/39			920		1,515,534
Series 2009, GO, 7.30%, 10/01/39			420		654,406
State of Connecticut, Series 2008A, GO, 5.85%, 03/15/32			1,280		1,681,741
State of Delaware, GO, 5.00%, 02/01/24			2,320		2,685,725
State of Illinois, Series 2003, GO, 5.10%, 06/01/33			3,525		3,812,323
State of Maryland, Series 2019A, GO, 5.00%, 08/01/30			660		869,200
State of Oregon, Series 2003, GO, 5.89%, 06/01/27			1,795		2,177,191
State of Washington, Series 2018C, GO, 5.00%, 02/01/39			1,935		2,385,797
Texas Private Activity Bond Surface Transportation Corp. (NTE Mobility Partners Segments 3 LLC Segment 3C Project), RB, 5.00%, 06/30/58			1,570		1,834,576
Triborough Bridge & Tunnel Authority, Series 2017A, RB, 5.00%, 11/15/47			2,135		2,583,841
University of California;
Series 2019BD, RB, 3.35%, 07/01/29			1,335		1,444,270
Series 2015AO, RB, 5.00%, 05/15/32			440		527,714
Series 2009R, RB, 5.77%, 05/15/43			6,160		8,363,802
Series 2012AD, RB, 4.86%, 05/15/12			219		289,853
University of California Medical Center, Series 2016L, RB, 5.00%, 05/15/47			370		430,303
Utah Transit Authority, Series 2039, RB, 5.94%, 06/15/39			1,455		2,026,102
Virginia Small Business Financing Authority (Transform 66 P3 Project), Series 2017, RB, 5.00%, 12/31/52			590		680,547
Total Municipal Bonds — 3.9% (Cost: $120,941,499)					129,625,974
Non-Agency Mortgage-Backed Securities — 3.8%
Collateralized Mortgage Obligations — 0.4%
CHL Mortgage Pass-Through Trust, Series 2004-29, Class 1A1, 2.56%, 02/25/35(c)			306		297,335
JPMorgan Mortgage Trust, Series 2017-3, Class 1A6, 3.00%, 08/25/47(b)(c)			4,635		4,655,837
Mortgage Loan Resecuritization Trust, Series 2009-RS1, Class A85, 2.44%, 04/16/36(b)(c)			6,843		5,933,920
MortgageIT Trust, Series 2004-1, Class A1, 2.80%, 11/25/34(c)			518		522,089
New Residential Mortgage Loan Trust, Series 2019-2A, Class A1, 4.25%, 12/25/57(b)(c)			512		533,670
Structured Asset Securities Corp. Assistance Loan Trust, Series 2003-AL1, Class A, 3.36%, 04/25/31(b)			270		269,459
					12,212,310
Commercial Mortgage-Backed Securities — 3.0%
1211 Avenue of the Americas Trust, Series 2015-1211, Class D, 4.28%, 08/10/35(b)(c)			150		159,305
280 Park Avenue Mortgage Trust, Series 2017-280P, Class D, 3.56%, 09/15/34(b)(c)			640		641,195
Americold LLC, Series 2010-ARTA, Class C, 6.81%, 01/14/29(b)			500		519,514
AOA Mortgage Trust, Series 2015-1177, Class C, 3.11%, 12/13/29(b)(c)			1,550		1,559,887
AREIT Trust, Series 2018-CRE1, Class A, 2.88%, 02/14/35(b)(c)			13		13,437

34 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Ashford Hospitality Trust, Series 2018-ASHF, Class D, 4.13%, 04/15/35(b)(c)	USD		421	$	422,050
Atrium Hotel Portfolio Trust, Series 2017-ATRM, Class D, 3.98%, 12/15/36(b)(c)			4,050		4,055,027
Aventura Mall Trust, Series 2013-AVM, Class D, 3.87%, 12/05/32(b)(c)			500		505,874
BAMLL Commercial Mortgage Securities Trust(b)(c):
Series 2017-SCH, Class CL, 3.53%, 11/15/32			1,450		1,449,841
Series 2017-SCH, Class DL, 4.03%, 11/15/32			1,490		1,489,836
Series 2018-DSNY, Class D, 3.73%, 09/15/34			830		832,593
Banc of America Commercial Mortgage Trust, Series 2007-1, Class AMFX, 5.48%, 01/15/49(c)			116		115,907
Bancorp Commercial Mortgage Trust (The), Series 2018-CR3, Class A, 2.88%, 01/15/33(b)(c)			403		401,376
BANK, Series 2019-BN19, Class C, 4.17%, 08/15/61(c)			420		452,465
Barclays Commercial Mortgage Trust:
Series 2019-C3, Class C, 4.18%, 05/15/52			323		348,009
Series 2019-C3, Class D, 3.00%, 05/15/52(b)			252		235,800
BBCMS Mortgage Trust(b)(c):
Series 2018-TALL, Class A, 2.75%, 03/15/37			232		231,423
Series 2018-TALL, Class D, 3.48%, 03/15/37			600		599,998
BBCMS Trust, Series 2015-SRCH, Class A1, 3.31%, 08/10/35(b)			1,119		1,165,211
BB-UBS Trust, Series 2012-SHOW, Class E, 4.16%, 11/05/36(b)(c)			260		261,840
Bear Stearns Commercial Mortgage Securities Trust(c):
Series 2005-PWR7, Class B, 5.21%, 02/11/41			196		195,365
Series 2007-T26, Class AM, 5.51%, 01/12/45			179		178,121
Benchmark Mortgage Trust:
Series 2018-B3, Class D, 3.06%, 04/10/51(b)(c)			130		122,500
Series 2019-B10, Class 3CCA, 4.03%, 03/15/62(b)(c)			1,113		1,181,561
Series 2019-B13, Class A4, 2.95%, 08/15/57			407		422,339
BWAY Mortgage Trust(b):
Series 2013-1515, Class A2, 3.45%, 03/10/33			710		752,205
Series 2013-1515, Class C, 3.45%, 03/10/33			2,810		2,903,458
Series 2013-1515, Class E, 3.72%, 03/10/33			100		103,215
BXP Trust(b)(c):
Series 2017-CC, Class D, 3.67%, 08/13/37			210		216,112
Series 2017-GM, Class D, 3.54%, 06/13/39			140		144,819
CAMB Commercial Mortgage Trust, Series 2019-LIFE, Class D, 3.78%, 12/15/37(b)(c)			1,385		1,391,406
CCRESG Commercial Mortgage Trust, Series 2016-HEAT, Class D, 5.67%, 04/10/29(b)(c)			200		204,495
CD Mortgage Trust:
Series 2006-CD3, Class AM, 5.65%, 10/15/48			1,281		1,317,688
Series 2017-CD3, Class A4, 3.63%, 02/10/50			280		303,364
Series 2017-CD4, Class A4, 3.51%, 05/10/50(c)			10		10,768
CFCRE Commercial Mortgage Trust:
Series 2016-C3, Class A3, 3.87%, 01/10/48			110		119,177

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2018-TAN, Class C, 5.29%, 02/15/33(b)	USD		840	$	899,530
CGDBB Commercial Mortgage Trust(b)(c):
Series 2017-BIOC, Class A, 2.82%, 07/15/32			1,200		1,199,998
Series 2017-BIOC, Class D, 3.63%, 07/15/32			1,250		1,250,002
CHC Commercial Mortgage Trust, Series 2019-CHC, Class B, 3.53%, 06/15/34(b)(c)			1,612		1,614,018
Citigroup Commercial Mortgage Trust:
Series 2013-375P, Class C, 3.63%, 05/10/35(b)(c)			245		250,943
Series 2014-GC19, Class C, 5.26%, 03/10/47(c)			120		130,178
Series 2016-C1, Class D, 5.12%, 05/10/49(b)(c)			110		115,145
Series 2016-P3, Class C, 4.99%, 04/15/49(c)			501		549,400
Series 2016-P3, Class D, 2.80%, 04/15/49(b)(c)			29		25,454
Series 2017-C4, Class A4, 3.47%, 10/12/50			290		311,935
Commercial Mortgage Trust:
Series 2014-CR14, Class A4, 4.24%, 02/10/47(c)			600		647,257
Series 2014-CR15, Class C, 4.90%, 02/10/47(c)			70		75,983
Series 2014-CR16, Class A4, 4.05%, 04/10/47			1,534		1,647,091
Series 2014-CR17, Class A5, 3.98%, 05/10/47			831		892,244
Series 2014-CR18, Class A4, 3.55%, 07/15/47			130		136,304
Series 2014-CR19, Class A5, 3.80%, 08/10/47			440		470,921
Series 2014-LC15, Class A4, 4.01%, 04/10/47			320		343,076
Series 2014-UBS4, Class C, 4.80%, 08/10/47(c)			551		576,964
Series 2015-CR24, Class A5, 3.70%, 08/10/48			300		322,272
Series 2015-CR25, Class A4, 3.76%, 08/10/48			854		919,511
Series 2015-LC19, Class A4, 3.18%, 02/10/48			420		438,847
Series 2015-LC19, Class C, 4.39%, 02/10/48(c)			1,160		1,228,473
Series 2015-LC19, Class D, 2.87%, 02/10/48(b)			615		587,267
Series 2015-LC23, Class A4, 3.77%, 10/10/48			200		216,100
Series 2016-667M, Class D, 3.28%, 10/10/36(b)(c)			440		446,041
Series 2017-COR2, Class A3, 3.51%, 09/10/50			270		289,782
Series 2017-COR2, Class D, 3.00%, 09/10/50(b)			4,150		3,922,070
Core Industrial Trust(b):
Series 2015-CALW, Class A, 3.04%, 02/10/34			342		348,782
Series 2015-TEXW, Class A, 3.08%, 02/10/34			3,374		3,449,075
Series 2015-TEXW, Class D, 3.98%, 02/10/34(c)			440		448,575
CSAIL Commercial Mortgage Trust:
Series 2015-C2, Class A4, 3.50%, 06/15/57			270		286,159

S C H E D U L E S   O F   I N V E S T M E N T S 35

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2018-C14, Class C, 5.06%, 11/15/51(c)	USD		270	$	305,527
Series 2019-C16, Class A3, 3.33%, 06/15/52			580		617,637
Series 2019-C16, Class C, 4.24%, 06/15/52(c)			800		856,628
Series 2019-C17, Class C, 3.93%, 09/15/52			949		986,528
Series 2019-C17, Class D, 2.50%, 09/15/52(b)			772		659,848
CSMC Trust(b):
Series 2015-GLPB, Class A, 3.64%, 11/15/34			1,107		1,160,204
Series 2017-PFHP, Class A, 2.98%, 12/15/30(c)			530		529,338
Series 2017-TIME, Class A, 3.65%, 11/13/39			230		244,242
DBJPM Mortgage Trust, Series 2016-C1, Class A4, 3.28%, 05/10/49			240		253,771
DBUBS Mortgage Trust(b):
Series 2011-LC1A, Class E, 5.88%, 11/10/46(c)			1,310		1,357,166
Series 2017-BRBK, Class A, 3.45%, 10/10/34			1,080		1,134,685
Series 2017-BRBK, Class D, 3.65%, 10/10/34(c)			360		370,512
Eleven Madison Mortgage Trust, Series 2015-11MD, Class A, 3.67%, 09/10/35(b)(c)			350		374,793
GPMT Ltd., Series 2018-FL1, Class A, 2.94%, 11/21/35(b)(c)			415		415,022
GS Mortgage Securities Corp. II(b):
Series 2005-ROCK, Class A, 5.37%, 05/03/32			800		920,930
Series 2013-KING, Class D, 3.55%, 12/10/27(c)			1,150		1,148,609
GS Mortgage Securities Corp. Trust(b):
Series 2016-RENT, Class C, 4.20%, 02/10/29(c)			395		400,104
Series 2017-500K, Class D, 3.33%, 07/15/32(c)			360		360,113
Series 2017-GPTX, Class A, 2.86%, 05/10/34			570		572,292
Series 2018-HULA, Class D, 3.83%, 07/15/25(c)			276		277,097
Series 2019-BOCA, Class A, 3.23%, 06/15/38(c)			317		317,197
GS Mortgage Securities Trust:
Series 2014-GC20, Class B, 4.53%, 04/10/47(c)			400		429,694
Series 2015-GC28, Class B, 3.98%, 02/10/48			150		158,676
Series 2015-GC32, Class C, 4.56%, 07/10/48(c)			790		845,646
Series 2015-GS1, Class A3, 3.73%, 11/10/48			150		162,360
Series 2017-GS6, Class A3, 3.43%, 05/10/50			300		320,973
Series 2017-GS7, Class A4, 3.43%, 08/10/50			403		429,653
Series 2017-GS7, Class D, 3.00%, 08/10/50(b)			150		143,400
Series 2017-GS7, Class E, 3.00%, 08/10/50(b)			50		46,663
HMH Trust, Series 2017-NSS, Class A, 3.06%, 07/05/31(b)			1,890		1,919,860
Hudson Yards Mortgage Trust, Series 2016-10HY, Class A, 2.84%, 08/10/38(b)			660		679,321

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
IMT Trust(b):
Series 2017-APTS, Class AFX, 3.48%, 06/15/34	USD		440	$	461,750
Series 2017-APTS, Class DFX, 3.61%, 06/15/34(c)			730		743,027
InTown Hotel Portfolio Trust, Series 2018-STAY, Class A, 2.73%, 01/15/33(b)(c)			150		149,764
JPMBB Commercial Mortgage Securities Trust: Series 2014-C21, Class A5, 3.77%, 08/15/47			450		480,597
Series 2014-C26, Class A4, 3.49%, 01/15/48			753		797,545
Series 2015-C33, Class D1, 4.27%, 12/15/48(b)(c)			553		554,475
JPMCC Commercial Mortgage Securities Trust:
Series 2017-JP5, Class D, 4.80%, 03/15/50(b)(c)			520		547,186
Series 2017-JP6, Class A5, 3.49%, 07/15/50			270		290,524
Series 2017-JP7, Class B, 4.05%, 09/15/50			90		97,330
Series 2019-COR5, Class C, 3.75%, 06/13/52			678		700,000
JPMDB Commercial Mortgage Securities Trust,
Series 2017-C5, Class A5, 3.69%, 03/15/50			420		457,040
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2012-CBX, Class A4FL, 3.32%, 06/15/45(b)(c)			107		108,319
Series 2014-C20, Class A5, 3.80%, 07/15/47			480		512,572
Series 2015-JP1, Class A5, 3.91%, 01/15/49			50		54,611
Series 2015-JP1, Class C, 4.89%, 01/15/49(c)			730		795,656
Series 2015-JP1, Class D, 4.39%, 01/15/49(c)			770		786,589
Series 2015-JP1, Class E, 4.39%, 01/15/49(b)(c)			299		289,048
Series 2015-UES, Class C, 3.74%, 09/05/32(b)(c)			990		995,066
Series 2016-NINE, Class A, 2.95%, 10/06/38(b)(c)			1,330		1,371,484
MAD Mortgage Trust, Series 2017-330M, Class D, 4.11%, 08/15/34(b)(c)			300		307,356
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2014-C16, Class A5, 3.89%, 06/15/47			1,120		1,196,453
Series 2015-C23, Class A4, 3.72%, 07/15/50			248		266,719
Series 2015-C23, Class D, 4.27%, 07/15/50(b)(c)			424		426,355
Series 2015-C25, Class C, 4.68%, 10/15/48(c)			320		346,185
Series 2015-C26, Class A5, 3.53%, 10/15/48			74		79,000
Series 2015-C26, Class D, 3.06%, 10/15/48(b)			653		620,894
Series 2017-C33, Class C, 4.56%, 05/15/50(c)			585		635,484
Morgan Stanley Capital Barclays Bank Trust, Series 2016-MART, Class A, 2.20%, 09/13/31(b)			200		199,894
Morgan Stanley Capital I Trust:
Series 2007-T27, Class AJ, 6.14%, 06/11/42(c)			379		402,319
Series 2014-CPT,Class E, 3.56%, 07/13/29(b)(c)			350		353,501
Series 2017-H1, Class C, 4.28%, 06/15/50(c)			290		309,639
Series 2017-H1, Class D, 2.55%, 06/15/50(b)			2,440		2,219,659
Series 2017-HR2, Class D, 2.73%, 12/15/50			1,360		1,243,118
Series 2018-H3, Class A5, 4.18%, 07/15/51			37		41,814
Series 2018-H3, Class C, 5.01%, 07/15/51(c)			730		810,009

36 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2018-H3, Class D, 3.00%, 07/15/51(b)	USD		510	$	468,775
Series 2019-AGLN, Class D, 3.78%, 03/15/34(b)(c)			1,700		1,699,997
Series 2019-H6, Class A4, 3.42%, 06/15/52			420		451,518
Series 2019-L2, Class A4, 4.07%, 03/15/52			347		391,409
Natixis Commercial Mortgage Securities Trust(b) (c):
Series 2018-FL1, Class A, 3.15%, 06/15/35			178		177,017
Series 2019-10K, Class D, 4.27%, 05/15/39			900		961,765
Series 2019-LVL, Class D, 4.44%, 08/15/38			310		338,466
One Bryant Park Trust, Series 2019-OBP, Class A, 2.52%, 09/13/49(b)			550		552,767
Prima Capital CRE Securitization Ltd., Series 2015-4A, Class C, 4.00%, 08/24/49(b)(h)			370		377,289
Scorpio European Loan Conduit No. 34 DAC, Series 34A, Class C, 2.87%, 05/17/29(b)(c)	GBP		260		319,379
SG Commercial Mortgage Securities Trust, Series 2019-PREZ, Class D,
1.00%, 09/15/39(b)(c)	USD		460		468,047
UBS Commercial Mortgage Trust, Series 2019- C17, Class A4, 2.92%, 09/15/52			801		825,028
VNDO Mortgage Trust, Series 2013-PENN, Class D, 4.08%, 12/13/29(b)(c)			150		151,349
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC18, Class A5, 3.41%, 12/15/47			130		137,033
Series 2015-C27, Class C, 3.89%, 02/15/48			425		429,929
Series 2015-C28, Class A4, 3.54%, 05/15/48			220		234,168
Series 2015-C30, Class A4, 3.66%, 09/15/58			390		418,786
Series 2015-C31, Class A4, 3.70%, 11/15/48			250		269,247
Series 2015-NXS1, Class A5, 3.15%, 05/15/48			89		92,901
Series 2015-NXS2, Class A5, 3.77%, 07/15/58(c)			890		959,329
Series 2015-NXS4, Class A4, 3.72%, 12/15/48			150		161,723
Series 2015-NXS4, Class D, 3.75%, 12/15/48(c)			181		183,862
Series 2015-P2, Class A4, 3.81%, 12/15/48			510		553,360
Series 2016-NXS5, Class D, 5.04%, 01/15/59(c)			2,717		2,898,385
Series 2017-C39, Class C, 4.12%, 09/15/50			160		169,874
Series 2017-C39, Class D, 4.50%, 09/15/50(b)(c)			120		122,455
Series 2017-HSDB, Class A, 2.89%, 12/13/31(b)(c)			397		395,834
Series 2018-1745, Class A, 3.87%, 06/15/36(b)(c)			210		230,912
Series 2018-C44, Class D, 3.00%, 05/15/51(b)			260		244,535
Series 2018-C45, Class C, 4.73%, 06/15/51			130		141,233
WFRBS Commercial Mortgage Trust:
Series 2011-C3, Class A3FL, 2.97%, 03/15/44(b)(c)			10		9,865
Series 2014-C21, Class A5, 3.68%, 08/15/47			485		515,414
					102,467,700
Interest Only Commercial Mortgage-Backed Securities — 0.4%(c)
245 Park Avenue Trust, Series 2017-245P, Class XA, 0.27%, 06/05/37(b)			11,000		148,610
Banc of America Commercial Mortgage Trust:
Series 2017-BNK3, Class XB, 0.78%, 02/15/50			4,185		180,143
Series 2017-BNK3, Class XD, 1.44%, 02/15/50(b)			2,000		163,540

Security		Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities (continued)
BANK:
Series 2019-BN20, Class XA, 0.84%, 09/15/61	USD		2,480	$	170,828
Series 2019-BN20, Class XB, 0.36%, 09/15/61			8,371		282,180
Barclays Commercial Mortgage Trust, Series 2019-C3, Class XA, 1.51%, 05/15/52			4,369		460,710
BBCMS Trust, Series 2015-SRCH, Class XA, 1.12%, 08/10/35(b)			7,280		433,670
BB-UBS Trust, Series 2012-SHOW, Class XA, 0.73%, 11/05/36(b)			65,905		1,963,257
Benchmark Mortgage Trust: Series 2019-B13, Class XA, 1.00%, 08/15/57			14,595		1,256,844
Series 2019-B9, Class XA, 1.21%, 03/15/52			4,953		403,884
CFCRE Commercial Mortgage Trust, Series 2016-C4, Class XB, 0.89%, 05/10/58			2,030		90,761
Commercial Mortgage Trust:
Series 2013-CR6, Class XA, 1.19%, 03/10/46			17,946		470,625
Series 2015-3BP,Class XA, 0.17%, 02/10/35(b)			40,878		208,887
Series 2018-COR3, Class XD, 1.75%, 05/10/51(b)			770		97,370
Core Industrial Trust, Series 2015-TEXW, Class XA, 0.90%, 02/10/34(b)			5,876		87,175
CSAIL Commercial Mortgage Trust:
Series 2017-CX10, Class XB, 0.22%, 11/15/50			3,170		52,516
Series 2019-C16, Class XA, 1.73%, 06/15/52			11,145		1,366,837
Series 2019-C17, Class XA, 1.37%, 09/15/52			10,230		1,076,852
Series 2019-C17, Class XB, 0.56%, 09/15/52			4,040		201,297
DBGS Mortgage Trust, Series 2019-1735, Class X, 0.43%, 04/10/37(b)			5,975		165,089
DBJPM Mortgage Trust, Series 2017-C6, Class XD, 1.00%, 06/10/50			3,040		184,558
GS Mortgage Securities Corp. II, Series 2013- KING, Class XA, 0.84%, 12/10/27(b)			28,834		565
JPMBB Commercial Mortgage Securities Trust, Series 2014-C22, Class XA, 1.01%, 09/15/47			1,015		34,837
JPMDB Commercial Mortgage Securities Trust, Series 2016-C4, Class XC, 0.75%, 12/15/49(b)			1,800		83,305
JPMorgan Chase Commercial Mortgage Securities Trust:
Series 2013-LC11, Class XB, 0.65%, 04/15/46			4,040		73,463
Series 2016-JP3, Class XC, 0.75%, 08/15/49(b)			4,330		193,161
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2016-C31, Class XA, 1.56%, 11/15/49			965		70,924
Morgan Stanley Capital I Trust:
Series 2017-H1, Class XD, 2.36%, 06/15/50(b)			3,030		439,926
Series 2018-H4, Class XA, 1.04%, 12/15/51			3,202		209,339
Series 2019-H6, Class XB, 0.87%, 06/15/52			5,210		327,772
Series 2019-L2, Class XA, 1.20%, 03/15/52			2,056		167,871
Olympic Tower Mortgage Trust, Series 2017- OT,Class XA, 0.51%, 05/10/39(b)			10,700		302,489

S C H E D U L E S   O F   I N V E S T M E N T S 37

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Interest Only Commercial Mortgage-Backed Securities (continued)
One Market Plaza Trust(b):
Series 2017-1MKT, Class XCP, 0.22%, 02/10/32	USD		17,050		$	58,652
Series 2017-1MKT, Class XNCP, 0.00%, 02/10/32(h)			3,410			36
UBS Commercial Mortgage Trust:
Series 2018-C14, Class XA, 1.18%, 12/15/51			1,214			90,485
Series 2019-C17, Class XA, 1.00%, 09/15/52			6,868			794,202
Wells Fargo Commercial Mortgage Trust:
Series 2016-BNK1, Class XD, 1.40%, 08/15/49(b)			1,180			84,382
Series 2018-C44, Class XA, 0.92%, 05/15/51			5,548			290,608
Series 2019-C50, Class XA, 1.63%, 05/15/52			4,929			531,358
						13,219,008
Total Non-Agency Mortgage-Backed Securities — 3.8% (Cost: $123,363,358)						127,899,018
		Beneficial Interest (000)
Other Interests — 0.0%(i)
Capital Markets — 0.0%
Lehman Brothers Holdings, Inc.(h)(j)(k)			16,030			—
Total Other Interests — 0.0%						—
		Par (000)
Capital Trusts — 0.4%
Banks — 0.1%
JPMorgan Chase & Co., Series FF, 5.00%(d)(l)			2,290			2,341,227
Capital Markets — 0.2%(d)(l)
Bank of New York Mellon Corp. (The), Series F, 4.62%			2,494			2,548,768
State Street Corp.:
Series F, 5.25%			1,110			1,129,425
Series H, 5.63%			2,280			2,359,185
						6,037,378
Entertainment — 0.1%
NBCUniversal Enterprise, Inc., 5.25%(b)(d)			4,000			4,120,000
Total Capital Trusts — 0.4% (Cost: $12,249,128)						12,498,605
U.S. Government Sponsored Agency Securities — 47.0%
Agency Obligations — 0.1%
Federal National Mortgage Association, 6.63%, 11/15/30			1,500			2,196,697
Collateralized Mortgage Obligations — 0.0%
Federal Home Loan Mortgage Corp.:
Series 1591, Class PK, 6.35%, 10/15/23			258			274,160
Series 2996, Class MK, 5.50%, 06/15/35			7			8,184
Federal National Mortgage Association:
Series 2005-29, Class AT, 4.50%, 04/25/35			—	(m)		477
Series 2005-29, Class WB, 4.75%, 04/25/35			100			103,866
Series 2005-48, Class AR, 5.50%, 02/25/35			10			10,161
Series 2005-62, Class CQ, 4.75%, 07/25/35			51			51,928
						448,776

Security		Par (000)		Value
Commercial Mortgage-Backed Securities — 0.4%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series K076, Class A2, 3.90%, 04/25/28	USD		1,288	$	1,452,746
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes(l):
Series KL4F, Class A2AS, 3.68%, 10/25/25			382		409,719
Series KW06, Class A2, 3.80%, 06/25/28			240		269,389
Federal Home Loan Mortgage Corp. Variable Rate Notes:
Series 2016-K54, Class B, 4.19%, 04/25/48(b)(l)			300		319,347
Series 2017-K64, Class B, 4.12%, 05/25/50(b)(l)			664		715,974
Series 2018-K77, Class B, 4.30%, 05/25/51(b)(l)			180		195,050
Series 2018-K80, Class B, (LIBOR USD 1 Month +0.00%), 4.37%, 08/25/50(a)(b)			340		370,084
Series 2018-SB52, Class A10F, 3.48%, 06/25/28(l)			563		592,016
Series 2018-SB53, Class A10F, 3.66%, 06/25/28(l)			339		365,197
Federal National Mortgage Association ACES Variable Rate Notes, Series 2006-M2, Class A2A, 5.27%, 10/25/32(l)			6,475		7,366,740
Government National Mortgage Association:
Series 2015-97, Class VA, 2.25%, 12/16/38			244		240,984
Series 2016-158, Class VA, 2.00%, 03/16/35			157		151,348
					12,448,594
Interest Only Commercial Mortgage-Backed Securities — 0.1%
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes, Series KW03, Class X1, 0.98%, 06/25/27(l)			2,106		105,493
Federal National Mortgage Association ACES Variable Rate Notes, Series 2013-M5, Class X2, 2.16%, 01/25/22(l)			4,374		100,150
Government National Mortgage Association Variable Rate Notes:
Series 2012-23, 0.56%, 06/16/53(l)			1,020		23,552
Series 2013-30, 0.79%, 09/16/53(l)			2,977		115,884
Series 2013-63, 0.79%, 09/16/51(l)			4,311		218,636
Series 2013-78, 0.76%, 10/16/54(l)			3,142		124,529
Series 2013-191, 0.73%, 11/16/53(l)			832		26,669
Series 2015-22, 0.70%, 03/16/55(l)			2,551		110,863
Series 2015-37, 0.76%, 10/16/56(l)			567		31,287
Series 2015-48, 0.69%, 02/16/50(l)			1,423		61,296
Series 2016-13, 0.87%, 04/16/57(l)			3,075		187,709
Series 2016-26, 0.96%, 02/16/58(l)			7,985		549,762
Series 2016-67, 1.17%, 07/16/57(l)			1,171		90,390
Series 2016-87, 1.00%, 08/16/58(l)			6,952		468,281
Series 2016-92, 1.01%, 04/16/58(l)			1,953		137,403
Series 2016-96, 0.98%, 12/16/57(l)			3,951		287,333
Series 2016-97, 1.04%, 07/16/56(l)			2,351		173,423
Series 2016-110, 1.03%, 05/16/58(l)			4,501		334,667
Series 2016-113, (LIBOR USD 1 Month + 0.00%), 1.18%, 02/16/58(a)			1,985		178,473
Series 2016-119, (LIBOR USD 1 Month + 0.00%), 1.12%, 04/16/58(a)			513		37,322
Series 2016-128, 0.95%, 09/16/56(l)			3,228		236,414
Series 2016-152, 0.91%, 08/15/58(l)			2,853		205,309
Series 2016-162, 1.00%, 09/16/58(l)			5,459		431,896
Series 2016-165, 0.97%, 12/16/57(l)			1,586		123,564
Series 2016-175, 0.92%, 09/16/58(l)			2,608		186,320

38 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)			Value
Interest Only Commercial Mortgage-Backed Securities (continued)
Series 2018-106, 0.49%, 04/16/60(l)	USD		2,536		$	144,032
						4,690,657
Mortgage-Backed Securities — 46.4%
Federal Home Loan Mortgage Corp.:
2.50%, 01/01/29 - 04/01/31			7,364			7,461,279
3.00%, 09/01/27 - 04/01/47			18,196			18,747,207
3.50%, 11/01/41 - 01/01/48			48,226			50,856,718
4.00%, 08/01/40 - 08/01/47			17,164			18,332,526
4.50%, 02/01/39 - 04/01/49			36,973			39,943,620
5.00%, 07/01/35 - 11/01/41			3,963			4,370,706
5.50%, 05/01/36 - 06/01/41			2,628			2,964,769
6.00%, 11/01/28 - 12/01/32			5			6,211
8.00%, 11/01/22			—	(m)		251
Federal National Mortgage Association:
4.00%, 01/01/41			301			319,728
7.00%, 06/01/32			12			14,051
Government National Mortgage Association:
3.00%, 12/20/44 - 12/20/46			40,431			41,707,663
3.00%, 10/15/49 - 11/15/49(n)			48,928			50,176,327
3.50%, 01/15/42 - 04/20/48			15,813			16,697,716
3.50%, 10/15/49(n)			78,550			81,374,905
4.00%, 04/20/39 - 06/20/47			7,907			8,374,648
4.00%, 10/15/49 - 11/15/49(n)			70,595			73,392,320
4.50%, 12/20/39 - 09/20/48			16,248			17,395,697
4.50%, 10/15/49 - 11/15/49(n)			31,537			32,938,423
5.00%, 12/15/38 - 07/20/41			5,333			5,913,932
5.00%, 10/15/49 - 11/15/49(n)			11,126			11,723,806
5.50%, 03/15/32 - 11/15/33			5			5,696
5.50%, 10/15/49(n)			4,400			4,697,516
6.00%, 12/15/36			47			51,469
7.50%, 11/15/29			—	(m)		373
Uniform Mortgage-Backed Securities:
2.00%, 10/01/31 - 03/01/32			4,162			4,128,636
2.50%, 09/01/27 - 02/01/33			19,738			19,989,415
2.50%, 10/25/34 - 10/25/49(n)			13,278			13,302,677
3.00%, 04/01/28 - 11/01/48			86,332			88,980,413
3.00%, 10/25/34 - 10/25/49(n)			52,778			53,651,982
3.50%, 08/01/27 - 01/01/48			95,731			100,838,610
3.50%, 10/25/49 - 11/25/49(n)			221,841			227,563,704
4.00%, 08/01/33 - 08/01/48			88,132			94,316,500
4.00%, 10/25/49 - 11/25/49(n)			223,317			231,792,682
4.50%, 02/01/25 - 05/01/49			84,892			92,285,928
4.50%, 10/25/34 - 11/25/49(n)			104,337			109,878,964
5.00%, 11/01/32 - 06/01/45			5,160			5,668,886
5.00%, 10/25/49(n)			6,680			7,154,384
5.50%, 10/01/21 - 04/01/41			6,034			6,792,466
6.00%, 01/01/21 - 06/01/41			8,645			9,934,298
6.50%, 05/01/40			1,801			2,074,516
						1,555,821,618
Total U.S. Government Sponsored Agency Securities — 47.0% (Cost: $1,556,531,573)						1,575,606,342
U.S. Treasury Obligations —18.2%
U.S. Treasury Bonds:
4.25%, 05/15/39			2,372			3,267,059
4.50%, 08/15/39			2,372			3,373,521
4.38%, 11/15/39			2,372			3,327,379
3.13%, 02/15/43			9,130			10,889,308
2.88%, 05/15/43 - 11/15/46			17,921			20,639,908
3.63%, 08/15/43			9,130			11,775,203
3.75%, 11/15/43			9,130			12,009,160
3.00%, 02/15/48			8,791			10,437,596
2.25%, 08/15/49			12,425			12,778,821

Security		Par (000)		Value
U.S. Treasury Obligations (continued)
U.S. Treasury Inflation Linked Notes, 0.50%, 04/15/24	USD		138,187	$	139,840,806
U.S. Treasury Notes:
2.00%, 07/31/20 - 02/15/25			57,100		57,599,443
2.50%, 12/31/20			26,357		26,583,505
1.13%, 07/31/21			39,534		39,140,204
1.75%, 07/31/21 - 07/31/24			88,682		89,139,516
1.50%, 01/31/22 - 08/15/26			60,622		60,324,221
2.13%, 12/31/22 - 05/15/25			54,467		55,761,648
2.75%, 05/31/23			17,573		18,303,378
2.25%, 08/15/27			17,573		18,371,336
2.88%, 08/15/28			5,269		5,793,430
3.13%, 11/15/28			5,269		5,915,276
1.63%, 08/15/29			5,281		5,256,658
Total U.S. Treasury Obligations — 18.2% (Cost: $592,851,797)					610,527,376
Total Long-Term Investments — 122.9% (Cost: $4,004,236,848)					4,115,149,454
		Shares
Short-Term Securities — 1.4%(o)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.87%*			45,790,217		45,790,217
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.77%			148,336		148,336
Total Short-Term Securities — 1.4% (Cost: $45,938,553)					45,938,553
Total Options Purchased — 0.0% (Cost: $595,879)					539,360
Total Investments Before TBA Sale Commitments — 124.3% (Cost: $4,050,771,280)					4,161,627,367
		Par (000)
TBA Sale Commitments — (9.2)%(n)
Mortgage-Backed Securities — (9.2)%
Government National Mortgage Association:
3.00%, 10/15/49			10,574		(10,849,815	)
3.50%, 10/15/49			4,152		(4,301,294	)
4.00%, 10/15/49			22,601		(23,503,716	)
4.50%, 10/15/49			19,764		(20,782,488	)
5.00%, 10/15/49			5,563		(5,865,053	)
Uniform Mortgage-Backed Securities:
2.50%, 10/25/34 - 11/25/34			15,572		(15,702,853	)
3.50%, 10/25/34 - 10/25/49			69,837		(71,645,151	)
4.00%, 10/25/34 - 10/25/49			69,995		(72,637,875	)
4.50%, 10/25/34 - 10/25/49			33,133		(34,828,440	)
3.00%, 10/25/49			33,917		(34,425,273	)
5.50%, 10/25/49			5,112		(5,533,540	)
6.00%, 10/25/49			6,269		(6,936,061	)
Total TBA Sale Commitments — (9.2)% (Proceeds: $306,733,181)					(307,011,559	)
Total Investments Net of TBA Sale Commitments — 115.1% (Cost: $3,744,038,099)					3,854,615,808
Liabilities in Excess of Other Assets — (15.1)%					(504,784,237	)
Net Assets — 100.0%				$	3,349,831,571

S C H E D U L E S   O F   I N V E S T M E N T S 39

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio

^(a)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

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

^(c)  Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

^(d)  Perpetual security with no stated maturity date.

^(e)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(f)  Zero-coupon bond.

^(g)  U.S. Government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

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

⁽ⁱ⁾  Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

^(j)  Issuer filed for bankruptcy and/or is in default.

^(k)  Non-income producing security.

^(l)  Variable rate security. Rate shown is the rate in effect as of period end.

^(m)  Amount is less than 500.

⁽ⁿ⁾  Represents or includes a TBA transaction.

^(o)  Annualized 7-day yield as of period end.

* During the year ended September 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, were as follows:

Affiliate	Shares Held at 09/30/18		Net Activity		Shares Held at 09/30/19		Value at 09/30/19		Income		Net Realized Gain (Loss) (a)		Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class		14,150,807		31,639,410		45,790,217	$	45,790,217	$	698,532	$	—	$	—

^(a)  Includes net capital gain distributions, if applicable.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

40 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
Euro-BTP		79		12/06/19	$	12,558	$	55,242
U.S. Treasury 10 Year Ultra Note		457		12/19/19		65,080		210,158
U.S. Treasury Ultra Bond		766		12/19/19		147,000		(2,511,900	)
U.S. Treasury 2 Year Note		502		12/31/19		108,181		200,219
U.S. Treasury 5 Year Note		318		12/31/19		37,889		140,258
								(1,906,023	)
Short Contracts
Euro-Bobl		289		12/06/19		42,729		200,645
Euro-Bund		148		12/06/19		28,109		18,162
Euro-Buxl		83		12/06/19		19,676		286,681
Euro-Schatz		11		12/06/19		1,347		(69	)
U.S. Treasury 10 Year Note		1,137		12/19/19		148,165		(106,860	)
U.S. Treasury Long Bond		97		12/19/19		15,744		101,009
								499,568
							$	(1,406,455	)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
CAD	762,038	EUR	525,000	Deutsche Bank AG		10/01/19	$	2,964
BRL	22,169,296	EUR	4,834,000	BNP Paribas SA		10/02/19		66,816
BRL	2,418,484	USD	580,000	Citibank NA		10/02/19		2,073
USD	57,833,003	EUR	52,331,000	Barclays Bank plc		10/03/19		790,494
USD	4,813,328	EUR	4,344,000	BNP Paribas SA		10/03/19		78,225
USD	2,847,612	EUR	2,579,000	Citibank NA		10/03/19		36,417
USD	4,993,722	EUR	4,509,000	Commonwealth Bank of Australia		10/03/19		78,764
USD	46,601,069	EUR	42,151,000	Goldman Sachs International		10/03/19		655,095
USD	18,492,871	EUR	16,779,000	State Street Bank and Trust Co.		10/03/19		203,210
INR	16,592,200	USD	230,000	BNP Paribas SA		10/07/19		4,324
USD	285,000	KRW	339,645,273	UBS AG		10/10/19		1,655
USD	415,666	COP	1,429,892,200	Citibank NA		10/23/19		5,189
USD	1,172,129	COP	4,020,043,850	Credit Suisse International		10/23/19		18,099
USD	959,487	COP	3,307,339,700	JPMorgan Chase Bank NA		10/23/19		10,052
USD	1,702,656	COP	5,840,486,080	Natwest Markets plc		10/23/19		26,034
ZAR	12,327,567	USD	811,104	Citibank NA		10/23/19		446
TWD	15,498,000	USD	500,000	HSBC Bank plc		10/30/19		315
USD	1,010,000	TWD	31,253,335	UBS AG		10/30/19		1,063
BRL	2,376,045	USD	570,000	Barclays Bank plc		11/04/19		453
BRL	19,293,642	USD	4,600,000	JPMorgan Chase Bank NA		11/04/19		32,117
USD	5,649,938	IDR	79,264,467,052	UBS AG		11/06/19		81,609
USD	8,587,667	MXN	168,268,461	BNP Paribas SA		11/06/19		113,716
USD	2,340,000	MXN	46,189,148	Citibank NA		11/06/19		13,928
USD	2,100,000	RUB	135,777,054	Citibank NA		11/06/19		16,174
USD	10,804,010	EUR	8,330,000	Deutsche Bank AG		12/13/19		1,673,731
CAD	4,447,126	AUD	4,862,000	Citibank NA		12/18/19		71,377
CAD	6,630	USD	5,000	Citibank NA		12/18/19		11
CHF	665,711	EUR	608,000	JPMorgan Chase Bank NA		12/18/19		4,974
EUR	5,553,000	CAD	8,052,600	JPMorgan Chase Bank NA		12/18/19		3,260
NOK	27,430,000	SEK	29,230,203	Bank of America NA		12/18/19		33,438
USD	909,000	AUD	1,325,129	BNP Paribas SA		12/18/19		12,383
USD	304,000	CHF	300,365	BNP Paribas SA		12/18/19		931
USD	3,386,516	EUR	3,039,000	JPMorgan Chase Bank NA		12/18/19		53,956
USD	292,000	EUR	264,814	Natwest Markets plc		12/18/19		1,606
USD	1,000	GBP	798	BNP Paribas SA		12/18/19		15

S C H E D U L E S   O F   I N V E S T M E N T S 41

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	905,000	GBP	728,826	JPMorgan Chase Bank NA		12/18/19	$	5,957
USD	4,895,000	JPY	526,095,020	BNP Paribas SA		12/18/19		1,086
USD	1,067,000	JPY	114,701,315	Citibank NA		12/18/19		9
USD	665,000	JPY	71,471,540	Royal Bank of Canada		12/18/19		148
USD	9,000	NOK	81,333	Bank of America NA		12/18/19		49
USD	2,710,520	NZD	4,255,000	BNP Paribas SA		12/18/19		41,273
USD	3,063,157	NZD	4,862,000	Citibank NA		12/18/19		13,127
USD	10,873,982	EUR	8,330,000	Deutsche Bank AG		02/25/20		1,693,386
JPY	1,109,230,000	USD	10,278,262	JPMorgan Chase Bank NA		03/16/20		102,617
USD	11,072,370	JPY	1,109,230,000	HSBC Bank plc		03/16/20		691,491
								6,644,057
CAD	8,016,186	EUR	5,553,000	JPMorgan Chase Bank NA		10/01/19		(1,856	)
EUR	6,078,000	CAD	8,797,905	Deutsche Bank AG		10/01/19		(15,964	)
BRL	5,201,015	USD	1,260,000	BNP Paribas SA		10/02/19		(8,236	)
BRL	11,254,452	USD	2,760,000	Citibank NA		10/02/19		(51,315	)
EUR	4,862,000	BRL	22,320,268	BNP Paribas SA		10/02/19		(72,633	)
USD	4,600,000	BRL	19,256,980	JPMorgan Chase Bank NA		10/02/19		(34,708	)
USD	230,000	INR	16,525,500	HSBC Bank plc		10/07/19		(3,382	)
ARS	9,367,000	USD	190,000	JPMorgan Chase Bank NA		10/15/19		(43,084	)
USD	75,000	ARS	5,175,000	BNP Paribas SA		10/15/19		(6,167	)
USD	225,000	ARS	15,600,000	Goldman Sachs International		10/15/19		(19,678	)
COP	1,398,510,000	USD	410,000	Barclays Bank plc		10/23/19		(8,531	)
USD	797,451	ZAR	12,327,567	HSBC Bank plc		10/23/19		(14,099	)
USD	500,000	TWD	15,625,000	BNP Paribas SA		10/30/19		(4,415	)
USD	510,000	BRL	2,125,032	BNP Paribas SA		11/04/19		(189	)
IDR	17,620,400,000	USD	1,240,000	BNP Paribas SA		11/06/19		(2,167	)
IDR	23,808,960,000	USD	1,680,000	Citibank NA		11/06/19		(7,421	)
MXN	45,850,428	USD	2,340,000	BNP Paribas SA		11/06/19		(30,986	)
RUB	177,231,145	USD	2,760,000	Goldman Sachs International		11/06/19		(39,961	)
USD	2,220,783	IDR	31,939,306,316	Bank of America NA		11/06/19		(22,953	)
USD	625,435	IDR	9,012,516,480	BNP Paribas SA		11/06/19		(7,694	)
USD	1,730,737	IDR	25,119,764,686	Citibank NA		11/06/19		(33,926	)
USD	1,240,000	IDR	18,321,000,000	JPMorgan Chase Bank NA		11/06/19		(47,050	)
USD	1,240,000	MXN	24,755,112	Citibank NA		11/06/19		(6,660	)
USD	4,490,975	RUB	295,490,000	Citibank NA		11/06/19		(44,032	)
USD	3,901,478	RUB	257,734,690	Morgan Stanley &Co. International plc		11/06/19		(54,083	)
ARS	9,762,750	USD	190,000	HSBC Bank plc		11/13/19		(44,344	)
EUR	8,330,000	USD	10,191,922	JPMorgan Chase Bank NA		12/13/19		(1,061,642	)
AUD	4,862,000	CAD	4,425,222	Citibank NA		12/18/19		(54,822	)
AUD	6,078,000	NZD	6,568,831	JPMorgan Chase Bank NA		12/18/19		(8,225	)
AUD	262,951	USD	178,000	JPMorgan Chase Bank NA		12/18/19		(81	)
BRL	19,904,625	USD	4,875,000	UBS AG		12/18/19		(107,133	)
CHF	289,747	USD	295,000	JPMorgan Chase Bank NA		12/18/19		(2,644	)
EUR	608,000	CHF	663,602	Citibank NA		12/18/19		(2,845	)
EUR	1,823,000	USD	2,019,683	Bank of America NA		12/18/19		(20,586	)
EUR	503,969	USD	561,000	BNP Paribas SA		12/18/19		(8,349	)
EUR	1,214,000	USD	1,348,662	HSBC Bank plc		12/18/19		(17,392	)
EUR	1,825,000	USD	2,022,662	JPMorgan Chase Bank NA		12/18/19		(21,371	)
EUR	1,214,000	USD	1,347,858	Standard Chartered Bank		12/18/19		(16,588	)
JPY	712,141,197	USD	6,627,000	Citibank NA		12/18/19		(2,421	)
JPY	51,095,763	USD	477,000	UBS AG		12/18/19		(1,690	)
NOK	8,121,338	USD	911,000	BNP Paribas SA		12/18/19		(17,191	)
NZD	1,435,928	USD	911,000	BNP Paribas SA		12/18/19		(10,214	)
NZD	4,255,000	USD	2,706,184	Deutsche Bank AG		12/18/19		(36,937	)
NZD	4,862,000	USD	3,056,444	JPMorgan Chase Bank NA		12/18/19		(6,414	)
SEK	29,409,952	NOK	27,430,000	JPMorgan Chase Bank NA		12/18/19		(15,079	)
SEK	6,298,472	USD	653,000	BNP Paribas SA		12/18/19		(9,707	)
SEK	2,440,082	USD	252,000	Natwest Markets plc		12/18/19		(2,783	)
USD	4,875,000	BRL	20,411,479	JPMorgan Chase Bank NA		12/18/19		(14,277	)
USD	911,000	CAD	1,206,988	BNP Paribas SA		12/18/19		(1,240	)
USD	910,000	JPY	97,885,769	BNP Paribas SA		12/18/19		(567	)
ZAR	56,292,000	JPY	407,056,900	BNP Paribas SA		12/18/19		(107,260	)

42 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Forward Foreign Currency Exchange Contracts (continued)

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
ZAR	3,880,000	JPY	28,013,864	JPMorgan Chase Bank NA		12/18/19	$	(6,993	)
EUR	8,330,000	USD	10,265,434	JPMorgan Chase Bank NA		02/25/20		(1,084,837	)
EUR	9,821,000	USD	10,918,976	State Street Bank and Trust Co.		02/25/20		(95,133	)
								(3,359,955	)
	Net Unrealized Appreciation						$	3,284,102

OTC Currency Options Purchased

Description	Counterparty	Expiration Date		Exercise Price		Notional Amount (000)		Value
Call
EUR Currency	Morgan Stanley & Co. International plc		10/23/19	CHF	1.13	EUR	6,078	$	193
Put
USD Currency	BNP Paribas SA		12/17/19	JPY	106.00	USD	16,870		125,282
USD Currency	Royal Bank of Canada		12/17/19	JPY	106.00	USD	1,980		14,704
USD Currency	Deutsche Bank AG		12/20/19	JPY	106.00	USD	17,503		135,928
									275,914
								$	276,107

OTC Interest Rate Swaptions Purchased

Description

Paid by the Fund

Received by the Fund

Counterparty

Expiration Date

Exercise Rate

Notional Amount (000)

Value

Rate

Frequency

Rate

Frequency

Call

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.70%

Semi-Annual

Bank of America NA

03/17/20

1.70

%

USD

6,623

$

167,740

10-Year Interest Rate Swap

3 month LIBOR

Quarterly

1.70%

Semi-Annual

Bank of America NA

03/17/20

1.70

%

USD

425

10,764

178,504

Put

10-Year Interest Rate Swap

1.70%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

03/17/20

1.70

%

USD

6,623

79,639

10-Year Interest Rate Swap

1.70%

Semi-Annual

3 month LIBOR

Quarterly

Bank of America NA

03/17/20

1.70

%

USD

425

5,110

84,749

$

263,253

Centrally Cleared Inflation Swaps

Paid by the Fund		Received by the Fund		Termination Date				Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Reference	Frequency	Rate	Frequency			Notional Amount (000)
0.81%	At Termination	1 month HICPXT	At Termination		09/15/24	EUR	50,909	$	(39,221	)	$	—	$	(39,221	)
1 month HICPXT	At Termination	0.99%	At Termination		09/15/29	EUR	50,909		76,603			—		76,603
								$	37,382		$	—	$	37,382

S C H E D U L E S   O F   I N V E S T M E N T S 43

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Centrally Cleared Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency	Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CDX.NA.IG.33.V1		1.00	%	Quarterly		12/20/24	USD	18,206	$	(367,498	)	$	(379,612	)	$	12,114
ITRAXX.EUR.Main.32.V1		1.00	%	Quarterly		12/20/24	EUR	76,189		(1,960,672	)		(1,921,069	)		(39,603	)
									$	(2,328,170	)	$	(2,300,681	)	$	(27,489	)

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Effective Date			Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
28 day MXIBTIIE	Monthly	8.21%	Monthly		N/A			10/07/20	MXN	76,196	$	43,171		$	—	$	43,171
6.86%	Monthly	28 day MXIBTIIE	Monthly		07/24/20	(a)		07/23/21	MXN	14,879		(4,367	)		—		(4,367	)
6.90%	Monthly	28 day MXIBTIIE	Monthly		07/27/20	(a)		07/26/21	MXN	20,768		(6,476	)		—		(6,476	)
6.78%	Monthly	28 day MXIBTIIE	Monthly		08/07/20	(a)		08/06/21	MXN	65,716		(16,970	)		—		(16,970	)
6 month GBP LIBOR	Semi-Annual	0.75%	Semi-Annual		N/A			09/24/21	GBP	67,645		138,136			—		138,136
6 month GBP LIBOR	Semi-Annual	0.73%	Semi-Annual		N/A			09/26/21	GBP	67,355		102,766			—		102,766
7.23%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/18/22	MXN	16,156		(14,199	)		—		(14,199	)
7.23%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/19/22	MXN	8,078		(7,107	)		—		(7,107	)
7.22%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/20/22	MXN	3,107		(2,700	)		—		(2,700	)
7.21%	Monthly	28 day MXIBTIIE	Monthly		N/A			07/25/22	MXN	4,349		(3,771	)		—		(3,771	)
7.20%	Monthly	28 day MXIBTIIE	Monthly		N/A			08/03/22	MXN	29,591		(24,867	)		—		(24,867	)
28 day MXIBTIIE	Monthly	7.00%	Monthly		N/A			08/11/22	MXN	37,133		21,785			—		21,785
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	19,509		(15,559	)		—		(15,559	)
7.11%	Monthly	28 day MXIBTIIE	Monthly		N/A			10/14/22	MXN	14,801		(11,910	)		—		(11,910	)
28 day MXIBTIIE	Monthly	8.39%	Monthly		N/A			01/18/24	MXN	36,980		133,201			—		133,201
28 day MXIBTIIE	Monthly	8.13%	Monthly		N/A			02/02/24	MXN	19,406		60,302			—		60,302
28 day MXIBTIIE	Monthly	8.14%	Monthly		N/A			02/05/24	MXN	13,946		43,698			—		43,698
28 day MXIBTIIE	Monthly	6.73%	Monthly		N/A			08/09/24	MXN	12,536		4,823			—		4,823
28 day MXIBTIIE	Monthly	6.67%	Monthly		N/A			08/12/24	MXN	27,583		7,244			—		7,244
28 day MXIBTIIE	Monthly	6.72%	Monthly		N/A			08/13/24	MXN	23,733		8,537			—		8,537
28 day MXIBTIIE	Monthly	6.32%	Monthly		N/A			07/17/25	MXN	14,506		(9,567	)		—		(9,567	)
3 month LIBOR	Quarterly	2.13%	Semi-Annual		N/A			08/25/25	USD	485		16,985			—		16,985
2.27%	Semi-Annual	3 month LIBOR	Quarterly		N/A			09/11/25	USD	367		(15,916	)		—		(15,916	)
2.91%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/23/26	USD	844		(78,199	)		—		(78,199	)
2.93%	Semi-Annual	3 month LIBOR	Quarterly		N/A			08/24/28	USD	1,870		(216,516	)		—		(216,516	)
3.16%	Semi-Annual	3 month LIBOR	Quarterly		N/A			10/03/28	USD	1,035		(150,402	)		—		(150,402	)
											$	2,122		$	—	$	2,122

^(a) Forward swap.

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/20		USD	1,491	$	(7,782	)	$	2,427		$	(10,209	)
United Mexican States		1.00	%		Quarterly	Bank of America NA		09/20/20		USD	1,491		(9,529	)		4,333			(13,862	)
Republic of Colombia		1.00	%		Quarterly	Citibank NA		12/20/24		USD	1,742		(6,026	)		(6,609	)		583
Republic of Colombia		1.00	%		Quarterly	Morgan Stanley &Co. International plc		12/20/24		USD	970		(3,355	)		(3,861	)		506

44 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio

OTC Credit Default Swaps — Buy Protection (continued)

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty		Termination Date		Notional Amount (000)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Republic of South Africa		1.00	%		Quarterly		Goldman Sachs International		12/20/24		USD	1,923	$	84,837		$	77,586		$	7,251
State of Qatar		1.00	%		Quarterly		JPMorgan Chase Bank NA		12/20/24		USD	454		(10,608	)		(11,790	)		1,182
United Mexican States		1.00	%		Quarterly		Citibank NA		12/20/24		USD	470		3,609			2,980			629
United Mexican States		1.00	%		Quarterly		Citibank NA		12/20/24		USD	2,060		15,820			13,063			2,757
United Mexican States		1.00	%		Quarterly		Citibank NA		12/20/24		USD	817		6,274			6,445			(171	)
United Mexican States		1.00	%		Quarterly		Citibank NA		12/20/24		USD	3,513		26,981			27,717			(736	)
CMBX.NA.9.AAA-		0.50	%		Monthly		Credit Suisse International		09/17/58		USD	1,280		(16,414	)		14,851			(31,265	)
CMBX.NA.9.AAA-		0.50	%		Monthly		Deutsche Bank AG		09/17/58		USD	1,030		(13,208	)		12,109			(25,317	)
CMBX.NA.9.AAA-		0.50	%		Monthly		Morgan Stanley & Co. International plc		09/17/58		USD	860		(11,028	)		9,977			(21,005	)
CMBX.NA.9.AAA-		0.50	%		Monthly		Morgan Stanley & Co. International plc		09/17/58		USD	720		(9,233	)		8,350			(17,583	)
CMBX.NA.9.AAA-		0.50	%		Monthly		Morgan Stanley & Co. International plc		09/17/58		USD	1,570		(20,132	)		19,634			(39,766	)
CMBX.NA.9.BBB-		3.00	%		Monthly		Citigroup Global Markets,Inc.		09/17/58		USD	440		11,908			15,136			(3,228	)
CMBX.NA.9.BBB-		3.00	%		Monthly		Morgan Stanley & Co. International plc		09/17/58		USD	288		7,794			16,194			(8,400	)
CMBX.NA.6.AAA-		0.50	%		Monthly		Deutsche Bank AG		05/11/63		USD	1,824		(15,745	)		(1,379	)		(14,366	)
CMBX.NA.6.AAA-		0.50	%		Monthly		Deutsche Bank AG		05/11/63		USD	781		(6,740	)		(115	)		(6,625	)
CMBX.NA.6.BBB-		3.00	%		Monthly		JPMorgan Securities LLC		05/11/63		USD	270		22,735			25,208			(2,473	)
CMBX.NA.6.BBB-		3.00	%		Monthly		JPMorgan Securities LLC		05/11/63		USD	10		842			601			241
													$	51,000		$	232,857		$	(181,857	)

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency		Counterparty		Termination Date		Credit Rating (a)	Notional Amount (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%		Quarterly		Bank of America NA		06/20/20	BBB+		USD	1,491	$	7,782		$	(2,727	)	$	10,509
United Mexican States		1.00	%		Quarterly		JPMorgan Chase Bank NA		09/20/20	BBB+		USD	1,491		9,529			(3,864	)		13,393
CMBX.NA.3.AM		0.50	%		Monthly		Credit Suisse International		12/13/49	NR		USD	5		(17	)		(476	)		459
CMBX.NA.3.AM		0.50	%		Monthly		Goldman Sachs International		12/13/49	NR		USD	12		(43	)		(1,205	)		1,162
CMBX.NA.3.AM		0.50	%		Monthly		JPMorgan Chase Bank NA		12/13/49	NR		USD	60		(217	)		(5,707	)		5,490
CMBX.NA.9.BBB-		3.00	%		Monthly		Deutsche Bank AG		09/17/58	NR		USD	723		(19,567	)		(84,772	)		65,205
CMBX.NA.9.BBB-		3.00	%		Monthly		Deutsche Bank AG		09/17/58	NR		USD	352		(9,526	)		(36,597	)		27,071
CMBX.NA.9.BBB-		3.00	%		Monthly		Morgan Stanley & Co. International plc		09/17/58	NR		USD	207		(5,602	)		(24,694	)		19,092
CMBX.NA.9.BBB-		3.00	%		Monthly		Morgan Stanley & Co. International plc		09/17/58	NR		USD	72		(1,948	)		(3,539	)		1,591
CMBX.NA.10.A		2.00	%		Monthly		Deutsche Bank AG		11/17/59	A-		USD	4,050		15,664			(170,157	)		185,821
CMBX.NA.10.A		2.00	%		Monthly		Deutsche Bank AG		11/17/59	A-		USD	2,020		7,812			(86,323	)		94,135
CMBX.NA.10.BBB-		3.00	%		Monthly		JPMorgan Securities LLC		11/17/59	NR		USD	35		(1,146	)		(2,931	)		1,785
CMBX.NA.6.BBB-		3.00	%		Monthly		Credit Suisse International		05/11/63	BBB-		USD	280		(23,577	)		(21,625	)		(1,952	)
														$	(20,856	)	$	(444,617	)	$	423,761

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

S C H E D U L E S   O F   I N V E S T M E N T S 45

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio

OTC Interest Rate Swaps

Paid by the Fund		Received by the Fund		Counterparty		Termination Date		Notional Amount (000)		Value			Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Rate	Frequency	Rate	Frequency
3.27%	Semi-Annual	3 month LIBOR	Quarterly		Deutsche Bank AG		05/16/21	USD	8,580	$	(297,823	)	$	—	$	(297,823	)
1 day BZDIOVER	At Termination	6.35%	At Termination		JPMorgan Chase Bank NA		01/02/23	BRL	23,630		66,121			—		66,121
1 day BZDIOVER	At Termination	8.27%	At Termination		JPMorgan Chase Bank NA		01/02/23	BRL	6,925		144,378			—		144,378
5.73%	Monthly	28 day MXIBTIIE	Monthly		Bank of America NA		01/03/25	MXN	7,400		14,225			—		14,225
28 day MXIBTIIE	Monthly	6.43%	Monthly		Bank of America NA		06/06/25	MXN	6,011		(2,443	)		—		(2,443	)
28 day MXIBTIIE	Monthly	6.33%	Monthly		Citibank NA		06/09/25	MXN	3,006		(1,913	)		—		(1,913	)
28 day MXIBTIIE	Monthly	6.33%	Monthly		Citibank NA		07/17/25	MXN	7,228		(4,677	)		—		(4,677	)
6.31%	Monthly	28 day MXIBTIIE	Monthly		Bank of America NA		08/11/25	MXN	7,575		5,336			—		5,336
6.31%	Monthly	28 day MXIBTIIE	Monthly		Bank of America NA		08/11/25	MXN	7,575		5,335			—		5,335
6.31%	Monthly	28 day MXIBTIIE	Monthly		Deutsche Bank AG		08/11/25	MXN	28,117		20,005			—		20,005
28 day MXIBTIIE	Monthly	6.27%	Monthly		Bank of America NA		12/05/25	MXN	901		(790	)		—		(790	)
										$	(52,246	)	$	—	$	(52,246	)

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
1 day BZDIOVER	Overnight Brazil CETIP — Interbank Rate		0.02	%
1 month HICPXT	Harmonized Index Of Consumer Prices Excluding Tobacco		0.19	%
28 day MXIBTIIE	Mexico Interbank TIIE 28-Day		8.00	%
3 month LIBOR	London Interbank Offered Rate		2.09	%
6 month GBP LIBOR	London Interbank Offered Rate		0.83	%

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps and OTC Swaps

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	—	$	(2,300,681	)	$	669,365	$	(657,350	)
OTC Swaps		256,611		(468,371	)		694,262		(504,604	)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

46 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	1,212,374	$	—	$	1,212,374
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		6,644,057		—		—		6,644,057
Options purchased
Investments at value — unaffiliated(b)		—		—		—		276,107		263,253		—		539,360
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		12,114		—		—		580,648		76,603		669,365
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		695,473		—		—		255,400		—		950,873
	$	—	$	707,587	$	—	$	6,920,164	$	2,311,675	$	76,603	$	10,016,029
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		2,618,829		—		2,618,829
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		3,359,955		—		—		3,359,955
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		39,603		—		—		578,526		39,221		657,350
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		665,329		—		—		307,646		—		972,975
	$	—	$	704,932	$	—	$	3,359,955	$	3,505,001	$	39,221	$	7,609,109

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b)  Includes options purchased at value as reported in the Schedule of Investments.

For the year ended September 30, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts			Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—		$	10,068,040		$	—		$	10,068,040
Forward foreign currency exchange contracts		—		—			—		(1,729,114	)		—			—			(1,729,114	)
Options purchased(a)		—		—			—		(541,444	)		(1,884,240	)		—			(2,425,684	)
Options written		—		—			—		—			987,030			—			987,030
Swaps		—		(21,377	)		—		9,997			517,438			(1,458,979	)		(952,921	)
	$	—	$	(21,377	)	$	—	$	(2,260,561	)	$	9,688,268		$	(1,458,979	)	$	5,947,351
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—			—		—			4,605,290			—			4,605,290
Forward foreign currency exchange contracts		—		—			—		(52,595	)		—			—			(52,595	)
Options purchased(b)		—		—			—		62,121			756,440			—			818,561
Options written		—		—			—		—			(57,715	)		—			(57,715	)
Swaps		—		(204,034	)		—		—			(85,294	)		19,999			(269,329	)
	$	—	$	(204,034)		$	—	$	9,526		$	5,218,721		$	19,999		$	5,044,212

^(a)  Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)  Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

S C H E D U L E S   O F   I N V E S T M E N T S 47

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	612,894,012
Average notional value of contracts — short		328,070,158
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		179,054,423
Average amounts sold — in USD		82,756,755
Options:
Average value of option contracts purchased		215,047
Average value of option contracts written		—	(a)
Average notional value of swaption contracts purchased		35,953,500
Average notional value of swaption contracts written		57,810,000
Credit default swaps:
Average notional value — buy protection		83,916,332
Average notional value — sell protection		16,372,254
Interest rate swaps:
Average notional value — pays fixed rate		287,474,081
Average notional value — receives fixed rate		302,626,486
Currency swaps:
Average notional value — pays fixed rate		54,779
Average notional value — receives fixed rate		54,152
Inflation swaps:
Average notional value — pays fixed rate		46,578,277
Average notional value — receives fixed rate		44,640,044

^(a) Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period.

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets			Liabilities
Derivative Financial Instruments:
Futures contracts	$	227,028		$	60,339
Forward foreign currency exchange contracts		6,644,057			3,359,955
Options(a)		539,360			—
Swaps — Centrally cleared		21,557			—
Swaps — OTC(b)		950,873			972,975
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	8,382,875		$	4,393,269
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(248,585	)		(60,339	)
Total derivative assets and liabilities subject to an MNA	$	8,134,290		$	4,332,930

^(a) Includes options purchased at value which is included in Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Schedule of Investments.

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

48 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Received		Cash Collateral Received			Net Amount of Derivative Assets (b)(c)
Bank of America NA	$	336,478	$	(63,361	)	$	—	$	—		$	273,117
Barclays Bank plc		790,947		(8,531	)		—		—			782,416
BNP Paribas SA		444,051		(287,015	)		—		—			157,036
Citibank NA		212,925		(212,925	)		—		—			—
Citigroup Global Markets, Inc.		15,136		(3,228	)		—		—			11,908
Commonwealth Bank of Australia		78,764		—			—		—			78,764
Credit Suisse International		33,409		(33,409	)		—		—			—
Deutsche Bank AG		3,910,355		(776,375	)		—		—			3,133,980
Goldman Sachs International		741,094		(60,844	)		—		—			680,250
HSBC Bank plc		691,806		(79,217	)		—		—			612,589
JPMorgan Chase Bank NA		445,924		(445,924	)		—		—			—
JPMorgan Securities LLC		27,835		(5,404	)		—		—			22,431
Morgan Stanley & Co. International plc		75,537		(75,537	)		—		—			—
Natwest Markets plc		27,640		(2,783	)		—		—			24,857
Royal Bank of Canada		14,852		—			—		—			14,852
State Street Bank and Trust Co.		203,210		(95,133	)		—		—			108,077
UBS AG		84,327		(84,327	)		—		—			—
	$	8,134,290	$	(2,234,013	)	$	—	$	—		$	5,900,277
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)			Non-cash Collateral Pledged		Cash Collateral Pledged (d)			Net Amount of Derivative Liabilities (c)(e)
Bank of America NA	$	63,361	$	(63,361	)	$	—	$	—		$	—
Barclays Bank plc		8,531		(8,531	)		—		—			—
BNP Paribas SA		287,015		(287,015	)		—		—			—
Citibank NA		217,548		(212,925	)		—		—			4,623
Citigroup Global Markets, Inc.		3,228		(3,228	)		—		—			—
Credit Suisse International		55,318		(33,409	)		—		—			21,909
Deutsche Bank AG		776,375		(776,375	)		—		—			—
Goldman Sachs International		60,844		(60,844	)		—		—			—
HSBC Bank plc		79,217		(79,217	)		—		—			—
JPMorgan Chase Bank NA		2,379,831		(445,924	)		—		(240,000	)		1,693,907
JPMorgan Securities LLC		5,404		(5,404	)		—		—			—
Morgan Stanley & Co. International plc		172,931		(75,537	)		—		(97,394	)		—
Natwest Markets plc		2,783		(2,783	)		—		—			—
Standard Chartered Bank		16,588		—			—		—			16,588
State Street Bank and Trust Co.		95,133		(95,133	)		—		—			—
UBS AG		108,823		(84,327	)		—		—			24,496
	$	4,332,930	$	(2,234,013	)	$	—	$	(337,394	)	$	1,761,523

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

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(d)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(e)  Net amount represents the net amount payable due to the counterparty in the event of default.

S C H E D U L E S   O F   I N V E S T M E N T S 49

Schedule of Investments  (continued) September 30, 2019 BlackRock Core Bond Portfolio

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—		$	229,973,311		$	—	$	229,973,311
Corporate Bonds(a)		—			1,323,089,669			—		1,323,089,669
Foreign Agency Obligations(a)		—			22,250,598			—		22,250,598
Foreign Government Obligations(a)		—			83,678,561			—		83,678,561
Municipal Bonds		—			129,625,974			—		129,625,974
Non-Agency Mortgage-Backed Securities		—			127,521,693			377,325		127,899,018
Capital Trusts(a)		—			12,498,605			—		12,498,605
U.S. Government Sponsored Agency Securities		—			1,575,606,342			—		1,575,606,342
U.S. Treasury Obligations		—			610,527,376			—		610,527,376
Short-Term Securities		45,938,553			—			—		45,938,553
Options Purchased:
Foreign currency exchange contracts		—			276,107			—		276,107
Interest rate contracts		—			263,253			—		263,253
Liabilities:
Investments:
TBA Sale Commitments		—			(307,011,559	)		—		(307,011,559	)
	$	45,938,553		$	3,808,299,930		$	377,325	$	3,854,615,808
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—		$	450,976		$	—	$	450,976
Foreign currency exchange contracts		—			6,644,057			—		6,644,057
Interest rate contracts		1,212,374			836,048			—		2,048,422
Other contracts		—			76,603			—		76,603
Liabilities:
Credit contracts		—			(236,561	)		—		(236,561	)
Foreign currency exchange contracts		—			(3,359,955	)		—		(3,359,955	)
Interest rate contracts		(2,618,829	)		(886,172	)		—		(3,505,001	)
Other contracts		—			(39,221	)		—		(39,221	)
	$	(1,406,455	)	$	3,485,775		$	—	$	2,079,320

^(a)  See above Schedule of Investments for values in each industry or country.

^(b)  Derivative financial instruments are swaps, futures contracts and forward foreign currency exchange contracts. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

50 2 0 1 9   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  (continued) September 30, 2019 BlackRock Core Bond Portfolio

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

	Asset- Backed Securities			Corporate Bonds			Non-Agency Mortgage- Backed Securities			U.S. Government Sponsored Agency Securities			Total
Investments:
Assets:
Opening balance, as of September 30, 2018	$	2,458,305		$	27,000,000		$	1,822,934		$	341,030		$	31,622,269
Transfers into level 3		—			—			—			—			—
Transfers out of level 3		(2,458,305	)		—			(1,225,838	)		(341,030	)		(4,025,173	)
Accrued discounts/premiums		—			—			(9	)		—			(9	)
Net realized loss		—			—			(68	)		—			(68	)
Net change in unrealized appreciation(a)(b)		—			—			4,347			—			4,347
Purchases		—			—			152,961			—			152,961
Sales		—			(27,000,000	)		(377,002	)		—			(27,377,002	)
Closing balance, as of September 30, 2019	$	—		$	—		$	377,325		$	—		$	377,325
Net change in unrealized appreciation on investments still held at September 30, 2019(b)	$	—		$	—		$	5,010		$	—		$	5,010

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

^(b) Any difference between net change in unrealized appreciation (depreciation) and net change in unrealized appreciation (depreciation) on investments still held at September 30, 2019 is generally due to investments no longer held or categorized as Level 3 at period end.

The Fund’s investments that are categorized as Level 3 were valued utilizing third party pricing information without adjustment. Such valuations are based on unobservable inputs. A significant change in third party information could result in a significantly lower or higher value of such Level 3 investments.

See notes to financial statements.

S C H E D U L E S   O F   I N V E S T M E N T S 51

Consolidated Schedule of Investments September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 1.0%
AIMCO CLO, Series 2017-AA, Class C, (LIBOR USD 3 Month + 2.45%), 4.73%, 07/20/29(a)(b)	USD		750	$	745,973
Allegro CLO II-S Ltd., Series 2014-1RA, Class B, (LIBOR USD 3 Month + 2.15%), 4.43%, 10/21/28(a)(b)			1,830		1,814,361
Allegro CLO VIII Ltd., Series 2018-2A, Class C, (LIBOR USD 3 Month + 2.15%), 4.45%, 07/15/31(a)(b)			250		243,744
ALM VI Ltd., Series 2012-6A, Class CR3, (LIBOR USD 3 Month + 2.70%), 5.00%, 07/15/26(a)(b)			4,630		4,571,061
ALM VII R Ltd., Series 2013-7RA, Class BR, (LIBOR USD 3 Month + 2.70%), 5.00%, 10/15/28(a)(b)			1,000		996,999
ALM VII R-2 Ltd., Series 2013-7R2A, Class BR2, (LIBOR USD 3 Month + 2.20%), 4.50%, 10/15/27(a)(b)			1,500		1,472,573
ALM VIII Ltd., Series 2013-8A, Class CR, (LIBOR USD 3 Month + 3.95%), 6.25%, 10/15/28(a)(b)			2,750		2,731,387
ALM XVI Ltd.(a)(b):
Series 2015-16A, Class BR2, (LIBOR USD 3 Month + 1.90%), 4.20%, 07/15/27			1,000		986,658
Series 2015-16A, Class CR2, (LIBOR USD 3 Month + 2.70%), 5.00%, 07/15/27			7,000		6,910,588
AMMC CLO 16 Ltd., Series 2015-16A, Class DR, (LIBOR USD 3 Month + 3.55%), 5.85%, 04/14/29(a)(b)			2,500		2,482,452
AMMC CLO 19 Ltd.(a)(b):
Series 2016-19A, Class C, (LIBOR USD 3 Month + 2.80%), 5.10%, 10/15/28			838		839,443
Series 2016-19A, Class D, (LIBOR USD 3 Month + 3.75%), 6.05%, 10/15/28			1,000		992,807
AMMC CLO 22 Ltd., Series 2018-22A, Class D, (LIBOR USD 3 Month + 2.70%), 4.98%, 04/25/31(a)(b)			510		476,437
Anchorage Capital CLO 4-R Ltd., Series 2014-4RA, Class D, (LIBOR USD 3 Month + 2.60%), 4.86%, 01/28/31(a)(b)			5,250		4,920,474
Anchorage Capital CLO 6 Ltd.(a)(b):
Series 2015-6A, Class CR, (LIBOR USD 3 Month + 2.40%), 4.70%, 07/15/30			2,300		2,287,870
Series 2015-6A, Class DR, (LIBOR USD 3 Month + 3.55%), 5.85%, 07/15/30			3,250		3,194,962
Anchorage Capital CLO 8 Ltd., Series 2016-8A, Class DR, (LIBOR USD 3 Month + 3.00%), 5.26%, 07/28/28(a)(b)			1,500		1,482,843
Anchorage Capital Europe CLO 2 DAC, Series 2X, Class E, (EURIBOR 3 Month + 5.66%), 5.66%, 05/15/31(a)	EUR		1,561		1,676,975
Apidos CLO XV(a)(b):
Series 2013-15A, Class CRR, (LIBOR USD 3 Month + 1.85%), 4.13%, 04/20/31	USD		1,000		968,161
Series 2013-15A, Class DRR, (LIBOR USD 3 Month + 2.70%), 4.98%, 04/20/31			1,000		928,393

Security		Par (000)		Value
Asset-Backed Securities (continued)
Apidos CLO XX, Series 2015-20A, Class BRR, (LIBOR USD 3 Month + 1.95%), 4.27%, 07/16/31(a)(b)	USD		1,000	$	973,306
Apidos CLO XXIII, Series 2015-23A, Class D2, (LIBOR USD 3 Month + 5.95%), 8.25%, 01/15/27(a)(b)			2,000		1,975,018
Apidos CLO XXIX, Series 2018-29A, Class C, (LIBOR USD 3 Month + 2.75%), 5.03%, 07/25/30(a)(b)			1,500		1,403,943
Aqueduct European CLO DAC, Series 2017-2X, Class E, (EURIBOR 3 Month + 4.40%), 4.40%, 10/15/30(a)	EUR		884		891,709
Arbour CLO IV DAC, Series 4X, Class E, (EURIBOR 3 Month + 5.60%), 5.60%, 01/15/30(a)			917		975,370
Ares European CLO VIII BV, Series 8X, Class E, (EURIBOR 3 Month + 6.35%), 6.35%, 02/17/30(a)			700		766,324
Ares XLIV CLO Ltd., Series 2017-44A, Class C, (LIBOR USD 3 Month + 3.45%), 5.75%, 10/15/29(a)(b)	USD		1,000		981,682
Ares XLIX CLO Ltd.(a)(b):
Series 2018-49A, Class B, (LIBOR USD 3 Month + 1.65%), 3.93%, 07/22/30			500		495,164
Series 2018-49A, Class E, (LIBOR USD 3 Month + 5.70%), 7.98%, 07/22/30			500		464,875
Ares XLVI CLO Ltd., Series 2017-46A, Class SUB, (LIBOR USD 3 Month + 0.00%), 0.00%, 01/15/30(a)(b)			2,000		1,718,430
Ares XLVIII CLO, Series 2018-48A, Class C, (LIBOR USD 3 Month + 1.80%), 4.08%, 07/20/30(a)(b)			1,250		1,201,991
Ares XXXIIR CLO Ltd., Series 2014- 32RA, Class B, (LIBOR USD 3 Month + 1.80%), 3.96%, 05/15/30(a)(b)			1,500		1,437,341
Ares XXXVR CLO Ltd., Series 2015- 35RA, Class C, (LIBOR USD 3 Month + 1.90%), 4.20%, 07/15/30(a)(b)			1,000		968,905
Assurant CLO I Ltd., Series 2017-1A, Class E, (LIBOR USD 3 Month + 6.46%), 8.74%, 10/20/29(a)(b)			350		342,912
Assurant CLO IV Ltd., Series 2019-1A, Class D, (LIBOR USD 3 Month + 3.85%), 6.13%, 04/20/30(a)(b)			1,000		992,657
Atlas Senior Loan Fund X Ltd., Series 2018-10A, Class B, (LIBOR USD 3 Month + 1.50%), 3.80%, 01/15/31(a)(b)			1,800		1,760,482
Atrium IX, Series 9A, Class DR, (LIBOR USD 3 Month + 3.60%), 5.74%, 05/28/30(a)(b)			500		491,502
Atrium VIII, Series 8A, Class SUB, 0.00%, 10/23/24(b)(c)			11,500		1,123,113
Atrium XIV LLC, Series 14A, Class C, (LIBOR USD 3 Month + 1.95%), 4.27%, 08/23/30(a)(b)			3,210		3,125,560
Atrium XV, Series 15A, Class C, (LIBOR USD 3 Month + 2.20%), 4.46%, 01/23/31(a)(b)			1,250		1,231,558
Avery Point IV CLO Ltd., Series 2014- 1A, Class CR, (LIBOR USD 3 Month + 2.35%), 4.63%, 04/25/26(a)(b)			1,000		999,579

52 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Avoca Capital CLO X Ltd., Series 10X, Class ER, (EURIBOR 3 Month + 6.05%), 6.05%, 01/15/30(a)	EUR		800	$	871,012
Avoca CLO DAC, Series 2018X, Class E, (EURIBOR 3 Month + 4.60%), 4.60%, 04/15/31(a)			700		713,435
Avoca CLO XV DAC, Series 15X, Class ER, (EURIBOR 3 Month + 4.13%), 4.13%, 04/15/31(a)			620		603,803
Avoca CLO XVII DAC, Series 17X, Class E, (EURIBOR 3 Month + 5.95%), 5.95%, 01/15/30(a)			1,279		1,387,766
Barings Euro CLO BV, Series 2018-3X, Class E, (EURIBOR 3 Month + 5.79%), 5.79%, 07/27/31(a)			1,200		1,243,032
Benefit Street Partners CLO VI Ltd., Series 2015-VIA, Class CR, (LIBOR USD 3 Month + 3.45%), 5.75%, 10/18/29(a)(b)	USD		3,250		3,215,847
Benefit Street Partners CLO XII Ltd., Series 2017-12A, Class C, (LIBOR USD 3 Month + 3.05%), 5.35%, 10/15/30(a)(b)			2,000		1,949,232
Bilbao CLO I DAC, Series 1X, Class D, (EURIBOR 3 Month + 4.73%), 4.73%, 07/20/31(a)	EUR		400		405,743
BlueMountain CLO Ltd., Series 2015- 1A, Class C, (LIBOR USD 3 Month + 3.75%), 6.05%, 04/13/27(a)(b)	USD		1,250		1,246,041
Cairn CLO IV BV, Series 2014-4X, Class ERR, (EURIBOR 3 Month + 5.88%), 5.88%, 04/30/31(a)	EUR		400		434,710
Carlyle Global Market Strategies CLO Ltd.(a)(b):
Series 2015-3A, Class A2R, (LIBOR USD 3 Month + 1.60%), 3.86%, 07/28/28	USD		2,000		1,999,163
Series 2015-4A, Class SBB1, (LIBOR USD 3 Month + 8.50%), 10.78%, 07/20/32			1,824		1,767,000
Series 2016-1A, Class BR, (LIBOR USD 3 Month + 1.85%), 4.13%, 04/20/27			500		493,467
Series 2016-3A, Class C, (LIBOR USD 3 Month + 4.00%), 6.28%, 10/20/29			1,000		992,700
Carlyle US CLO Ltd.(a)(b):
Series 2016-4A, Class BR, (LIBOR USD 3 Month + 2.10%), 4.38%, 10/20/27			1,000		993,535
Series 2017-2A, Class B, (LIBOR USD 3 Month + 2.40%), 4.68%, 07/20/31			1,750		1,732,135
Series 2017-4A, Class C, (LIBOR USD 3 Month + 2.80%), 5.10%, 01/15/30			1,000		929,947
CBAM Ltd.(a)(b):
Series 2017-2A, Class C1, (LIBOR USD 3 Month + 2.40%), 4.70%, 10/17/29			1,500		1,488,419
Series 2018-6A, Class B1, (LIBOR USD 3 Month + 1.50%), 3.80%, 07/15/31			2,000		1,965,727

Security		Par (000)		Value
Asset-Backed Securities (continued)
Cedar Funding IV CLO Ltd., Series 2014-4A, Class DR, (LIBOR USD 3 Month + 3.65%), 5.91%, 07/23/30(a)(b)	USD		3,000	$	2,987,009
Cedar Funding IX CLO Ltd.(a)(b):
Series 2018-9A, Class C, (LIBOR USD 3 Month + 1.75%), 4.03%, 04/20/31			1,250		1,188,049
Series 2018-9A, Class D, (LIBOR USD 3 Month + 2.60%), 4.88%, 04/20/31			1,400		1,295,883
Cent CLO 17 Ltd., Series C17A, Class A2R, (LIBOR USD 3 Month + 1.60%), 3.87%, 04/30/31(a)(b)			1,000		988,339
CIFC Funding Ltd.(a)(b):
Series 2014-2RA, Class A3, (LIBOR USD 3 Month + 1.90%), 4.18%, 04/24/30			2,000		1,954,615
Series 2014-4RA, Class B, (LIBOR USD 3 Month + 2.20%), 4.50%, 10/17/30			850		844,470
Series 2017-1A, Class D, (LIBOR USD 3 Month + 3.50%), 5.78%, 04/23/29			1,500		1,490,273
Clear Creek CLO, Series 2015-1A, Class DR, (LIBOR USD 3 Month + 2.95%), 5.23%, 10/20/30(a)(b)			1,350		1,285,510
CVC Cordatus Loan Fund VIII DAC, Series 8X, Class F, (EURIBOR 3 Month + 7.65%), 4.90%, 04/23/30(a)	EUR		551		577,639
Dewolf Park CLO Ltd., Series 2017-1A, Class C, (LIBOR USD 3 Month + 2.15%), 4.45%, 10/15/30(a)(b)	USD		1,000		986,725
Dryden 50 Senior Loan Fund, Series 2017-50A, Class C, (LIBOR USD 3 Month + 2.25%), 4.55%, 07/15/30(a)(b)			3,000		2,981,101
Fillmore Park CLO Ltd., Series 2018-1A, Class D, (LIBOR USD 3 Month + 2.90%), 5.20%, 07/15/30(a)(b)			1,000		952,904
Galaxy XVIII CLO Ltd., Series 2018- 28A, Class C, (LIBOR USD 3 Month + 1.95%), 4.25%, 07/15/31(a)(b)			250		241,278
Galaxy XXIX CLO Ltd., Series 2018- 29A, Class C, (LIBOR USD 3 Month + 1.68%), 3.84%, 11/15/26(a)(b)			1,500		1,487,560
Galaxy XXVI CLO Ltd., Series 2018- 26A, Class B, (LIBOR USD 3 Month + 1.70%), 3.85%, 11/22/31(a)(b)			250		248,654
GoldenTree Loan Management US CLO 3 Ltd., Series 2018-3A, Class C, (LIBOR USD 3 Month + 1.90%), 4.18%, 04/20/30(a)(b)			2,500		2,432,038
Greywolf CLO V Ltd., Series 2015-1A, Class CR, (LIBOR USD 3 Month + 3.00%), 5.28%, 01/27/31(a)(b)			2,000		1,870,562
GT Loan Financing I Ltd., Series 2013- 1A, Class CR, (LIBOR USD 3 Month + 2.10%), 4.36%, 07/28/31(a)(b)			1,000		976,426
Harvest CLO XVI DAC, Series 16X, Class ER, (EURIBOR 3 Month + 5.57%), 5.57%, 10/15/31(a)	EUR		1,125		1,184,823
Jamestown CLO IV Ltd., Series 2014- 4A, Class SUB, 0.00%, 07/15/26(b)(c)	USD		2,000		188,408

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 53

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Madison Park Funding XIII Ltd., Series 2014-13A, Class CR2, (LIBOR USD 3 Month + 1.90%), 4.20%, 04/19/30(a)(b)	USD		1,500	$	1,471,374
Madison Park Funding XV Ltd., Series 2014-15A, Class B1R, (LIBOR USD 3 Month + 2.20%), 4.46%, 01/27/26(a)(b)			1,000		1,002,539
Madison Park Funding XXV Ltd., Series 2017-25A, Class B, (LIBOR USD 3 Month + 2.35%), 4.63%, 04/25/29(a)(b)			1,000		1,000,968
Madison Park Funding XXXI Ltd., Series 2018-31A, Class B, (LIBOR USD 3 Month + 1.70%), 3.96%, 01/23/31(a)(b)			500		496,061
Neuberger Berman CLO XXII Ltd., Series 2016-22A, Class DR, (LIBOR USD 3 Month + 3.10%), 5.40%, 10/17/30(a)(b)			3,750		3,414,934
Neuberger Berman CLO XXIII Ltd., Series 2016-23A, Class CR, (LIBOR USD 3 Month + 2.15%), 4.45%, 10/17/27(a)(b)			1,400		1,382,500
Neuberger Berman Loan Advisers CLO Ltd., Series 2018-27A, Class D, (LIBOR USD 3 Month + 2.60%), 4.90%, 01/15/30(a)(b)			1,000		922,649
Oak Hill Credit Partners X-R Ltd., Series 2014-10RA, Class C, (LIBOR USD 3 Month + 2.20%), 4.48%, 12/12/30(a)(b)			1,522		1,485,291
OCP Euro CLO DAC(a):
Series 2017-2X, Class E, (EURIBOR 3 Month + 5.00%), 5.00%, 01/15/32	EUR		1,347		1,448,469
Series 2017-2X, Class F, (EURIBOR 3 Month + 6.40%), 6.40%, 01/15/32			900		912,036
OCP Euro DAC, Series 2017-1X, Class E, (EURIBOR 3 Month + 5.35%), 5.35%, 06/18/30(a)			1,700		1,827,651
Octagon Investment Partners 31 LLC, Series 2017-1A, Class E, (LIBOR USD 3 Month + 6.30%), 8.58%, 07/20/30(a)(b)	USD		1,000		954,614
Octagon Investment Partners 33 Ltd., Series 2017-1A, Class C, (LIBOR USD 3 Month + 2.75%), 5.03%, 01/20/31(a)(b)			1,750		1,636,652
Octagon Investment Partners 39 Ltd., Series 2018-3A, Class E, (LIBOR USD 3 Month + 5.75%), 8.03%, 10/20/30(a)(b)			300		278,148
Octagon Investment Partners XXII Ltd., Series 2014-1A, Class CRR, (LIBOR USD 3 Month + 1.90%), 4.18%, 01/22/30(a)(b)			1,000		967,017
Octagon Investment Partners XXIII Ltd., Series 2015-1A, Class CR, (LIBOR USD 3 Month + 1.85%), 4.15%, 07/15/27(a)(b)			750		736,903
OHA Credit Partners XI Ltd.(a)(b):
Series 2015-11A, Class DR, (LIBOR USD 3 Month + 2.95%), 5.23%, 01/20/32			534		500,810
Series 2015-11A, Class ER, (LIBOR USD 3 Month + 5.75%), 8.03%, 01/20/32			2,250		2,042,216

Security		Par (000)		Value
Asset-Backed Securities (continued)
OHA Credit Partners XII Ltd., Series 2015-12A, Class DR, (LIBOR USD 3 Month + 2.90%), 5.16%, 07/23/30(a)(b)	USD		1,250	$	1,180,002
OZLM Funding IV Ltd., Series 2013-4A, Class BR, (LIBOR USD 3 Month + 2.20%), 4.48%, 10/22/30(a)(b)			3,000		2,920,511
OZLM Funding Ltd., Series 2012-1A, Class CR2, (LIBOR USD 3 Month + 3.60%), 5.88%, 07/22/29(a)(b)			1,000		976,050
OZLM VI Ltd.(a)(b):
Series 2014-6A, Class A2AS, (LIBOR USD 3 Month + 1.75%), 4.05%, 04/17/31			1,500		1,487,507
Series 2014-6A, Class B1S, (LIBOR USD 3 Month + 2.10%), 4.40%, 04/17/31			3,000		2,901,197
OZLM XIX Ltd., Series 2017-19A, Class C, (LIBOR USD 3 Month + 3.10%), 5.40%, 11/22/30(a)(b)			1,250		1,198,328
OZLME BV, Series 1X, Class ER, (EURIBOR 3 Month + 5.90%), 5.90%, 01/18/30(a)(d)	EUR		990		1,079,050
OZLME II DAC, Series 2X, Class E, (EURIBOR 3 Month + 4.90%), 4.90%, 10/15/30(a)			807		855,646
OZLME III DAC, Series 3X, Class E, (EURIBOR 3 Month + 4.80%), 4.80%, 08/24/30(a)			1,000		1,037,478
Palmer Square CLO Ltd.(a)(b):
Series 2015-1A, Class BR2, (LIBOR USD 3 Month + 2.25%), 4.40%, 05/21/29	USD		3,500		3,497,115
Series 2018-2A, Class D, (LIBOR USD 3 Month + 5.60%), 7.92%, 07/16/31			1,000		897,818
Regatta VII Funding Ltd.(a)(b):
Series 2016-1A, Class CR, (LIBOR USD 3 Month + 2.00%), 4.16%, 12/20/28			750		737,379
Series 2016-1A, Class DR, (LIBOR USD 3 Month + 2.75%), 4.91%, 12/20/28			2,000		1,896,933
Rockford Tower CLO Ltd.(a)(b):
Series 2018-2A, Class B, (LIBOR USD 3 Month + 1.80%), 4.08%, 10/20/31			500		497,727
Series 2018-2A, Class C, (LIBOR USD 3 Month + 2.20%), 4.48%, 10/20/31			750		741,848
Series 2018-2A, Class D, (LIBOR USD 3 Month + 3.10%), 5.38%, 10/20/31			1,000		953,781
Seneca Park CLO Ltd., Series 2014-1A, Class SUB, 0.00%, 07/17/26(b)(c)			2,500		148,935
Symphony CLO XVIII Ltd., Series 2016- 18A, Class D, (LIBOR USD 3 Month + 4.00%), 6.26%, 01/23/28(a)(b)			1,000		992,866
TIAA CLO IV Ltd., Series 2018-1A, Class A2, (LIBOR USD 3 Month + 1.70%), 3.98%, 01/20/32(a)(b)			2,000		1,972,926
TICP CLO XII Ltd., Series 2018-12A, Class D, (LIBOR USD 3 Month + 2.80%), 5.10%, 01/15/31(a)(b)			4,500		4,317,881

54 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Treman Park CLO Ltd.(a)(b):
Series 2015-1A, Class C3RR, (LIBOR USD 3 Month + 2.00%), 4.28%, 10/20/28	USD		250	$	247,510
Series 2015-1A, Class DRR, (LIBOR USD 3 Month + 2.65%), 4.93%, 10/20/28			1,800		1,755,028
TRESTLES CLO II Ltd., Series 2018- 2A, Class B, (LIBOR USD 3 Month + 1.90%), 4.18%, 07/25/31(a)(b)			1,250		1,198,730
Voya CLO Ltd., Series 2014-1A, Class CR2, (LIBOR USD 3 Month + 2.80%), 5.10%, 04/18/31(a)(b)			1,000		910,712
York CLO 1 Ltd., Series 2014-1A, Class CRR, (LIBOR USD 3 Month + 2.10%), 4.38%, 10/22/29(a)(b)			1,500		1,470,944
Total Asset-Backed Securities — 1.0% (Cost: $190,392,166)					173,995,296
		Shares
Common Stocks — 1.0%
Auto Components — 0.1%
UCI International, Inc.(d)(e)			1,260,653		28,679,856
Chemicals — 0.3%
Element Solutions, Inc.(e)(f)			4,671,745		47,558,363
Commercial Services & Supplies — 0.0%
FreedomPay, Inc.(d)(e)			314,534		3
Containers & Packaging — 0.1%
Crown Holdings, Inc.(e)			174,885		11,552,904
Diversified Financial Services — 0.0%(e)
Adelphia Recovery Trust			1,339,784		1,340
Adelphia Recovery Trust(d)			130,590		171
					1,511
Diversified Telecommunication Services — 0.0%
Telecom Italia SpA(e)			2,751,062		1,526,233
Equity Real Estate Investment Trusts (REITs) — 0.1%
Gaming and Leisure Properties, Inc.			464,262		17,753,379
Hotels, Restaurants & Leisure — 0.1%
Stars Group, Inc. (The)(e)			1,296,417		19,404,422
Media — 0.1%
Clear Channel Outdoor Holdings, Inc.(e)			4,744,023		11,954,938
SES SA, FDR			31,276		570,082
					12,525,020
Metals & Mining — 0.2%
Constellium SE, Class A(e)			2,522,574		32,061,915
Oil, Gas & Consumable Fuels — 0.0%(d)(e)
KCAD Holdings I Ltd.			4,067,849,248		2,847,495
Osum Oil Sands Corp.(g)			1,600,000		2,765,596
					5,613,091
Semiconductors & Semiconductor Equipment — 0.0%
SunPower Corp.(e)			1,369		15,018
Total Common Stocks — 1.0% (Cost: $210,759,355)					176,691,715

Security		Par (000)		Value
Corporate Bonds — 82.5%
Aerospace & Defense — 4.0%
Arconic, Inc.:
5.40%, 04/15/21	USD		5,357	$	5,542,003
5.87%, 02/23/22			9,751		10,384,815
5.13%, 10/01/24			36,942		39,343,230
BBA US Holdings, Inc., 5.38%, 05/01/26(b)			11,433		12,004,650
Bombardier, Inc.(b):
8.75%, 12/01/21			35,626		38,476,080
5.75%, 03/15/22			5,590		5,680,837
6.13%, 01/15/23			15,790		16,082,115
7.50%, 12/01/24			12,792		12,792,000
7.50%, 03/15/25			30,433		30,394,959
7.88%, 04/15/27			92,225		91,842,266
BWX Technologies, Inc., 5.38%, 07/15/26(b)			11,437		12,023,146
F-Brasile SpA, Series XR, 7.38%, 08/15/26(b)			14,861		15,455,440
Kratos Defense & Security Solutions, Inc., 6.50%, 11/30/25(b)			14,100		15,051,750
TransDigm UK Holdings plc, 6.88%, 05/15/26			25,077		26,957,775
TransDigm, Inc.:
6.00%, 07/15/22			6,055		6,145,825
6.50%, 05/15/25			4,330		4,492,375
6.25%, 03/15/26(b)			307,614		330,300,533
Triumph Group, Inc., 6.25%, 09/15/24(b)			17,029		17,713,566
					690,683,365
Air Freight & Logistics — 0.0%
XPO Logistics, Inc., 6.75%, 08/15/24(b)			3,750		4,068,750
Auto Components — 1.5%
Allison Transmission, Inc., 5.88%, 06/01/29(b)			22,107		23,986,095
GKN Holdings Ltd., 4.63%, 05/12/32(h)	GBP		1,800		2,246,348
Icahn Enterprises LP:
6.25%, 02/01/22	USD		618		634,068
6.75%, 02/01/24			10,994		11,433,760
4.75%, 09/15/24(b)			3,969		3,965,031
6.38%, 12/15/25			15,483		16,280,568
6.25%, 05/15/26(b)			24,235		25,416,456
IHO Verwaltungs GmbH(i):
3.63%, (3.63% Cash or 4.38% PIK), 05/15/25	EUR		1,344		1,516,164
3.88%, (3.88% Cash or 4.63% PIK), 05/15/27(j)			911		1,012,804
Panther BF Aggregator 2 LP:
4.38%, 05/15/26			4,068		4,517,052
6.25%, 05/15/26(b)	USD		67,577		71,124,793
8.50%, 05/15/27(b)			90,444		91,574,550
					253,707,689
Automobiles — 0.1%
Tesla, Inc., 5.30%, 08/15/25(b)			11,701		10,516,274
Banks — 1.4%
ABN AMRO Bank NV, (EUR Swap Annual 5 Year + 5.45%), 5.75%(a)(k)	EUR		1,900		2,138,396
Allied Irish Banks plc(a):
(EUR Swap Annual 5 Year + 7.34%), 7.38%(k)			1,444		1,670,052
(EUR Swap Annual 5 Year + 3.95%), 4.13%, 11/26/25			2,078		2,354,471
Banco Bilbao Vizcaya Argentaria SA, (EUR Swap Annual 5 Year + 9.18%), 8.88%(a)(k)			1,000		1,204,395

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 55

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
Banco BPM SpA:
1.75%, 04/24/23	EUR		1,653	$	1,830,831
2.50%, 06/21/24			2,700		3,048,326
Banco de Sabadell SA(a):
(EUR Swap Annual 5 Year + 6.41%), 6.50%(k)			1,000		1,087,835
(EUR Swap Annual 5 Year + 5.10%), 5.38%, 12/12/28			1,400		1,695,690
Banco Espirito Santo SA(e)(l):
2.63%, 05/08/17			10,400		2,153,741
4.75%, 01/15/18			12,300		2,547,213
4.00%, 01/21/19			12,000		2,485,086
Banco Santander SA(a)(k):
(EUR Swap Annual 5 Year + 6.80%), 6.75%			900		1,065,443
(EUR Swap Annual 5 Year + 4.10%), 4.75%			1,400		1,478,244
Bank of America Corp., Series V, (LIBOR USD 3 Month + 3.39%), 5.53%(a)(k)	USD		82		82,107
Bank of Ireland, (EUR Swap Annual 5 Year + 6.96%), 7.38%(a)(k)	EUR		2,836		3,209,858
Bank of Ireland Group plc, (U.K. Government Bonds 5 Year Note Generic Bid Yield + 2.70%), 3.12%, 09/19/27(a)	GBP		500		606,721
Bankia SA(a)(k):
(EUR Swap Annual 5 Year + 5.82%), 6.00%	EUR		2,400		2,700,750
(EUR Swap Annual 5 Year + 6.22%), 6.37%			800		921,714
Barclays plc:
4.38%, 09/11/24	USD		28,717		29,691,712
(U.K. Government Bonds 5 Year Note Generic Bid Yield + 6.02%), 6.37%(a)(k)	GBP		850		1,051,221
5.20%, 05/12/26	USD		7,800		8,285,815
(EUR Swap Annual 5 Year + 1.90%), 2.00%, 02/07/28(a)	EUR		800		864,356
CaixaBank SA(a)(k):
(EUR Swap Annual 5 Year + 6.50%), 6.75%			800		956,758
(EUR Swap Annual 5 Year + 4.50%), 5.25%			2,000		2,114,503
CIT Bank NA, (SOFR + 1.72%), 2.97%, 09/27/25(a)	USD		9,298		9,295,211
CIT Group, Inc.:
5.00%, 08/01/23			3,919		4,173,735
4.75%, 02/16/24			2		2,119
6.13%, 03/09/28			10,335		12,091,950
6.00%, 04/01/36			23,131		25,964,548
Credit Agricole SA(a)(k):
(EUR Swap Annual 5 Year + 5.12%), 6.50%	EUR		3,637		4,280,963
(USD Swap Semi 5 Year + 6.19%), 8.12%	USD		600		705,750
Erste Group Bank AG(a)(k):
(EUR Swap Annual 5 Year + 9.02%), 8.88%	EUR		1,600		1,994,490
(EUR Swap Annual 5 Year + 6.20%), 6.50%			800		1,004,960
Hongkong & Shanghai Banking Corp. Ltd. (The), Series 3H, (LIBOR USD 3 Month + 0.00%), 2.50%(a)(k)	USD		2,290		1,694,585

Security		Par (000)		Value
Banks (continued)
HSBC Holdings plc, (USD Swap Rate 5 Year + 3.75%), 6.00%(a)(k)	USD		24,053	$	24,738,991
ING Groep NV, (USD Swap Semi 5 Year + 4.20%), 6.75%(a)(k)			2,764		2,901,520
Intesa Sanpaolo SpA, (EUR Swap Annual 5 Year + 7.19%), 7.75%(a)(k)	EUR		2,483		3,183,188
JPMorgan Chase & Co., Series FF, (SOFR + 3.38%), 5.00%(a)(k)	USD		49,005		50,101,242
National Westminster Bank plc, Series C, (LIBOR USD 3 Month + 0.25%), 2.37%(a)(k)			1,240		1,000,680
Royal Bank of Scotland Group plc, (USD Swap Semi 5 Year + 7.60%), 8.62%(a)(k)			6,571		7,036,555
Societe Generale SA, (USD Swap Rate 5 Year + 5.87%), 8.00%(a)(k)			600		675,750
UBS Group Funding Switzerland AG, (EUR Swap Annual 5 Year + 5.29%), 5.75%(a)(k)	EUR		4,238		5,058,033
UniCredit SpA(a)(k):
(EUR Swap Annual 5 Year + 6.10%), 6.75%			622		705,067
(EUR Swap Annual 5 Year + 9.30%), 9.25%			2,294		2,881,648
(EURIBOR Swap Rate 5 Year + 7.33%), 7.50%			1,475		1,788,340
					236,524,563
Building Products — 0.6%(b)
Advanced Drainage Systems, Inc., 5.00%, 09/30/27	USD		13,364		13,547,621
Builders FirstSource, Inc., 6.75%, 06/01/27			5,305		5,716,137
CPG Merger Sub LLC, 8.00%, 10/01/21			18,362		18,362,000
James Hardie International Finance DAC, 4.75%, 01/15/25			2,080		2,142,400
JELD-WEN, Inc.:
4.63%, 12/15/25			7,080		7,106,762
4.88%, 12/15/27			96		95,040
Masonite International Corp.:
5.75%, 09/15/26			1,286		1,356,730
5.38%, 02/01/28			9,427		9,827,648
PGT Escrow Issuer, Inc., 6.75%, 08/01/26			5,037		5,427,368
Standard Industries, Inc.:
5.50%, 02/15/23			797		812,940
5.38%, 11/15/24			21,930		22,587,900
6.00%, 10/15/25			21,641		22,689,723
					109,672,269
Capital Markets — 0.4%
Credit Suisse Group AG(a)(k):
(USD Swap Semi 5 Year + 4.60%), 7.50%(b)			6,617		7,071,919
(USD Swap Semi 5 Year + 4.60%), 7.50%			969		1,070,745
(USD Swap Semi 5 Year + 3.46%), 6.25%(b)			1,000		1,057,500
(US Treasury Yield Curve Rate T Note Constant Maturity 5 Year + 4.82%), 6.37%(b)			23,920		24,757,200
Lehman Brothers Holdings Capital Trust Escrow Bonds(e)(l):
5.38%, 10/17/12	EUR		4,550		66,950
4.75%, 01/16/14			14,545		214,020

56 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Capital Markets (continued)
(EURIBOR 3 Month + 0.30%), 0.00%, 02/05/14(a)	EUR		22,800	$	335,486
LPL Holdings, Inc., 5.75%, 09/15/25(b)	USD		3,669		3,815,760
MSCI, Inc.(b):
5.25%, 11/15/24			7,540		7,785,050
5.75%, 08/15/25			193		202,409
4.75%, 08/01/26			1,189		1,245,477
Owl Rock Capital Corp., 5.25%, 04/15/24			9,446		9,938,800
Pershing Square Holdings Ltd., 5.50%, 07/15/22(b)			14,000		14,655,900
					72,217,216
Chemicals — 2.2%
Atotech Alpha 2 BV, 8.75%, (8.75% Cash or 9.50% PIK), 06/01/23(b)(i)			16,872		16,745,460
Atotech Alpha 3 BV, 6.25%, 02/01/25(b)			63,469		63,786,345
Axalta Coating Systems LLC, 4.88%, 08/15/24(b)			28,625		29,555,312
Blue Cube Spinco LLC:
9.75%, 10/15/23			36,481		39,764,290
10.00%, 10/15/25			35,094		39,282,030
Chemours Co. (The):
6.63%, 05/15/23			19,433		19,190,088
4.00%, 05/15/26	EUR		6,252		6,231,289
5.38%, 05/15/27	USD		6,149		5,303,697
Element Solutions, Inc., 5.88%, 12/01/25(b)			64,152		67,032,264
Gates Global LLC, 6.00%, 07/15/22(b)			16,132		16,071,505
GCP Applied Technologies, Inc., 5.50%, 04/15/26(b)			8,146		8,308,920
INEOS Group Holdings SA, 5.38%, 08/01/24	EUR		817		911,426
Monitchem HoldCo 2 SA, 9.50%, 09/15/26			1,000		1,063,268
Monitchem HoldCo 3 SA:
(EURIBOR 3 Month + 5.25%), 4.86%, 03/15/25(a)			1,413		1,548,108
5.25%, 03/15/25			1,993		2,177,701
NOVA Chemicals Corp., 4.88%, 06/01/24(b)	USD		1,606		1,651,530
Olin Corp., 5.50%, 08/15/22			255		269,025
PQ Corp.(b):
6.75%, 11/15/22			14,100		14,593,500
5.75%, 12/15/25			23,695		24,405,850
Solvay Finance SA, (EUR Swap Annual 5 Year + 5.22%), 5.87%(a)(k)	EUR		900		1,158,753
Solvay SA, (EUR Swap Annual 5 Year + 3.92%), 4.25%(a)(k)			500		600,188
TPC Group, Inc., 10.50%, 08/01/24(b)	USD		16,063		16,745,678
W.R. Grace & Co., 5.63%, 10/01/24(b)			1,619		1,744,473
					378,140,700
Commercial Services & Supplies — 1.8%
AA Bond Co. Ltd., 4.25%, 07/31/20	GBP		159		197,722
ADT Security Corp. (The):
6.25%, 10/15/21	USD		944		1,005,360
3.50%, 07/15/22			2,307		2,315,651
4.13%, 06/15/23			1,043		1,058,645
4.88%, 07/15/32(b)			28,324		24,783,500
Advanced Disposal Services, Inc., 5.63%, 11/15/24(b)			7,587		7,918,931
APX Group, Inc.:
8.75%, 12/01/20			11,536		11,334,120
7.88%, 12/01/22			2,159		2,146,154
8.50%, 11/01/24(b)			7,550		7,625,500

Security		Par (000)		Value
Commercial Services & Supplies (continued)
Aramark Services, Inc.:
5.00%, 04/01/25(b)	USD		6,323	$	6,528,498
4.75%, 06/01/26			569		584,647
5.00%, 02/01/28(b)			25,492		26,511,680
Clean Harbors, Inc.(b):
4.88%, 07/15/27			16,016		16,716,700
5.13%, 07/15/29			10,014		10,614,840
GFL Environmental, Inc.(b):
7.00%, 06/01/26			21,443		22,568,757
8.50%, 05/01/27			30,605		33,933,294
Harland Clarke Holdings Corp., 8.38%, 08/15/22(b)			7,258		5,951,560
IAA, Inc., 5.50%, 06/15/27(b)			21,371		22,546,405
Intrum AB:
2.75%, 07/15/22	EUR		936		1,032,373
3.50%, 07/15/26			1,754		1,942,361
KAR Auction Services, Inc., 5.13%, 06/01/25(b)	USD		2,927		3,029,445
Matthews International Corp., 5.25%, 12/01/25(b)			2,787		2,640,682
Mobile Mini, Inc., 5.88%, 07/01/24			34,030		35,050,900
Nielsen Co. Luxembourg SARL (The), 5.00%, 02/01/25(b)			5,499		5,430,262
Prime Security Services Borrower LLC(b):
5.25%, 04/15/24			10,864		11,152,439
5.75%, 04/15/26			21,551		22,441,057
Ritchie Bros Auctioneers, Inc., 5.38%, 01/15/25(b)			4,373		4,564,319
SPIE SA, 2.63%, 06/18/26	EUR		700		792,530
Techem Verwaltungsgesellschaft 674 mbH, 6.00%, 07/30/26			1,200		1,412,408
Verisure Holding AB, 3.50%, 05/15/23			1,382		1,558,746
Verisure Midholding AB, 5.75%, 12/01/23			1,867		2,095,985
Waste Pro USA, Inc., 5.50%, 02/15/26(b)	USD		4,433		4,570,246
					302,055,717
Communications Equipment — 0.7%
CommScope, Inc.(b):
5.50%, 03/01/24			38,355		39,457,706
6.00%, 03/01/26			22,676		23,465,125
Nokia OYJ, 6.63%, 05/15/39			23,469		27,576,075
ViaSat, Inc., 5.63%, 04/15/27(b)			34,731		36,467,550
					126,966,456
Construction & Engineering — 0.2%
Brand Industrial Services, Inc., 8.50%, 07/15/25(b)			13,344		12,610,080
Ferrovial Netherlands BV, (EUR Swap
Annual 5 Year + 2.13%), 2.12%(a)(k)	EUR		1,400		1,488,197
New Enterprise Stone & Lime Co., Inc.(b):
10.13%, 04/01/22	USD		11,036		11,339,490
6.25%, 03/15/26			3,485		3,563,412
					29,001,179
Construction Materials — 0.0%
CEMEX Finance LLC, 4.63%, 06/15/24	EUR		400		457,779
Cemex SAB de CV, 3.13%, 03/19/26			1,450		1,617,890
Holcim Finance Luxembourg SA, (EURIBOR Swap Rate 5 Year + 3.07%), 3.00%(a)(k)			925		1,057,737
					3,133,406

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 57

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Consumer Finance — 1.9%
Ally Financial, Inc.:
4.13%, 03/30/20	USD		1,900	$	1,911,875
4.13%, 02/13/22			577		589,982
3.88%, 05/21/24			10,301		10,659,475
5.75%, 11/20/25			1,161		1,300,343
8.00%, 11/01/31			116,941		161,670,933
Credit Acceptance Corp., 6.63%, 03/15/26(b)			7,636		8,170,520
Global Aircraft Leasing Co. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 09/15/24(b)(i)			28,518		28,803,180
LeasePlan Corp. NV, (EURIBOR Swap Rate 5 Year + 7.56%), 7.38%(a)(k)	EUR		1,450		1,692,259
Mulhacen Pte. Ltd., 6.50%, (6.50% Cash or 7.25% PIK), 08/01/23(i)			2,236		2,017,995
Navient Corp.:
5.00%, 10/26/20	USD		4,891		4,952,137
6.63%, 07/26/21			9,208		9,668,400
6.50%, 06/15/22			1,229		1,308,885
5.50%, 01/25/23			8,593		8,872,273
7.25%, 09/25/23			6,192		6,730,704
6.13%, 03/25/24			6,031		6,255,293
5.88%, 10/25/24			9,013		9,080,597
6.75%, 06/25/25			2,087		2,152,219
6.75%, 06/15/26			5,904		6,051,600
Springleaf Finance Corp.:
5.63%, 03/15/23			3,727		3,969,255
6.88%, 03/15/25			16,178		17,826,134
7.13%, 03/15/26			14,629		16,228,315
6.63%, 01/15/28			11,443		12,304,658
Volkswagen International Finance NV, Series NC6, (EUR Swap Annual 6 Year + 2.97%), 3.38%(a)(k)	EUR		1,800		2,056,856
					324,273,888
Containers & Packaging — 2.4%
Ardagh Packaging Finance plc:
4.63%, 05/15/23(b)	USD		52,712		53,963,910
6.75%, 05/15/24	EUR		2,247		2,574,782
4.13%, 08/15/26(b)	USD		14,723		14,815,019
4.75%, 07/15/27(b)	GBP		4,000		5,028,170
4.75%, 07/15/27			1,215		1,527,307
Berry Global, Inc., 4.88%, 07/15/26(b)	USD		26,436		27,325,571
Crown Americas LLC:
4.75%, 02/01/26			14,806		15,490,778
4.25%, 09/30/26			19,859		20,554,065
Crown European Holdings SA, 3.38%, 05/15/25	EUR		1,932		2,332,981
Graphic Packaging International LLC:
4.88%, 11/15/22	USD		223		233,035
4.75%, 07/15/27(b)			6,475		6,798,750
Greif, Inc., 6.50%, 03/01/27(b)			1,720		1,824,060
Horizon Parent Holdings SARL, 8.25%, (8.25% Cash or 9.00% PIK), 02/15/22(i)	EUR		1,238		1,377,114
Intertape Polymer Group, Inc., 7.00%, 10/15/26(b)	USD		5,412		5,642,010
LABL Escrow Issuer LLC, 6.75%, 07/15/26(b)			18,707		19,502,048
Mauser Packaging Solutions Holding Co.:
4.75%, 04/15/24	EUR		2,116		2,384,173
5.50%, 04/15/24(b)	USD		73,123		75,130,226
Reynolds Group Issuer, Inc.(b):
5.13%, 07/15/23			11,026		11,287,867
7.00%, 07/15/24			22,807		23,633,754

Security		Par (000)		Value
Containers & Packaging (continued)
Sealed Air Corp.(b):
5.25%, 04/01/23	USD		534	$	568,710
5.13%, 12/01/24			2,230		2,386,100
6.88%, 07/15/33			158		184,860
Trivium Packaging Finance BV:
3.75%, 08/15/26(h)	EUR		2,605		3,002,581
(EURIBOR 3 Month + 3.75%), 3.75%, 08/15/26(a)			370		413,900
5.50%, 08/15/26(b)(h)	USD		51,520		54,157,824
8.50%, 08/15/27(b)(h)			60,525		65,442,656
					417,582,251
Distributors — 0.6%
American Builders & Contractors Supply Co., Inc.(b):
5.75%, 12/15/23			1,301		1,340,030
5.88%, 05/15/26			16,811		17,609,523
Core & Main Holdings LP, 8.63%, (8.63% Cash or 9.38% PIK), 09/15/24(b)(i)			24,182		24,363,365
Core & Main LP, 6.13%, 08/15/25(b)			36,058		35,967,855
Parts Europe SA:
4.38%, 05/01/22	EUR		899		982,036
(EURIBOR 3 Month + 5.50%), 5.50%, 05/01/22(a)			747		814,193
Performance Food Group, Inc., 5.50%, 10/15/27(b)	USD		13,532		14,242,430
					95,319,432
Diversified Consumer Services — 0.6%
BidFair MergeRight, Inc., 7.38%, 10/15/27(b)			19,000		19,357,580
frontdoor, Inc., 6.75%, 08/15/26(b)			16,276		17,822,546
Graham Holdings Co., 5.75%, 06/01/26(b)			8,749		9,405,175
Laureate Education, Inc., 8.25%, 05/01/25(b)			5,260		5,720,250
Service Corp. International:
5.38%, 05/15/24			716		738,940
5.13%, 06/01/29			18,793		20,085,019
ServiceMaster Co. LLC (The), 5.13%, 11/15/24(b)			29,658		30,770,175
					103,899,685
Diversified Financial Services — 1.5%
Allied Universal Holdco LLC(b):
6.63%, 07/15/26			59,304		62,639,850
9.75%, 07/15/27			6,746		7,030,142
Arrow Global Finance plc:
5.13%, 09/15/24	GBP		900		1,100,139
(EURIBOR 3 Month + 3.75%), 3.75%, 03/01/26(a)	EUR		900		980,955
Cabot Financial Luxembourg II SA, (EURIBOR 3 Month + 6.38%), 6.37%, 06/14/24(a)			115		129,888
Cabot Financial Luxembourg SA, 7.50%, 10/01/23	GBP		2,100		2,675,241
Fairstone Financial, Inc., 7.88%, 07/15/24(b)	USD		4,756		4,967,047
Garfunkelux Holdco 3 SA:
7.50%, 08/01/22	EUR		4,030		4,174,982
(EURIBOR 3 Month + 4.50%), 4.50%, 09/01/23(a)			650		623,451
HBOS Capital Funding LP, 6.85%(k)	USD		6,050		6,140,750
LHC3 plc, 4.13%, (4.13% Cash or 9.00% PIK), 08/15/24(i)	EUR		3,876		4,393,183
Nexi Capital SpA, 4.13%, 11/01/23			519		580,407

58 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Financial Services (continued)
Refinitiv US Holdings, Inc.:
4.50%, 05/15/26(b)	EUR		20,132	$	23,611,629
4.50%, 05/15/26			3,809		4,467,350
6.25%, 05/15/26(b)	USD		2,994		3,211,035
6.88%, 11/15/26	EUR		1,665		2,026,187
8.25%, 11/15/26(b)	USD		50,327		55,548,426
Verscend Escrow Corp., 9.75%, 08/15/26(b)			72,335		77,027,371
					261,328,033
Diversified Telecommunication Services — 5.9%
Altice France SA:
6.25%, 05/15/24(b)			6,447		6,653,304
2.50%, 01/15/25	EUR		1,577		1,744,634
7.38%, 05/01/26(b)	USD		82,411		88,361,898
5.88%, 02/01/27	EUR		3,300		3,978,416
8.13%, 02/01/27(b)	USD		42,499		46,908,271
3.38%, 01/15/28	EUR		2,614		2,895,143
5.50%, 01/15/28(b)	USD		52,217		52,874,934
Arqiva Broadcast Finance plc, 6.75%, 09/30/23.	GBP		500		655,469
CCO Holdings LLC(b):
4.00%, 03/01/23	USD		13,302		13,518,158
5.75%, 02/15/26			5,794		6,124,258
5.50%, 05/01/26			5,000		5,237,000
5.13%, 05/01/27			44,047		45,974,056
5.88%, 05/01/27			2,771		2,930,332
5.00%, 02/01/28			30,378		31,403,258
5.38%, 06/01/29			66,541		70,866,165
CenturyLink, Inc.:
Series W, 6.75%, 12/01/23			15,506		16,979,070
Series Y, 7.50%, 04/01/24			22,639		25,318,326
5.63%, 04/01/25			12,115		12,569,312
Series P, 7.60%, 09/15/39			7,040		6,864,000
Series U, 7.65%, 03/15/42			7,040		6,846,400
Cincinnati Bell, Inc.(b):
7.00%, 07/15/24			9,031		8,353,675
8.00%, 10/15/25			12,007		10,506,125
DKT Finance ApS:
7.00%, 06/17/23	EUR		4,200		4,897,457
9.38%, 06/17/23(b)	USD		1,600		1,719,200
eircom Finance DAC, 3.50%, 05/15/26	EUR		530		616,152
Embarq Corp., 8.00%, 06/01/36	USD		20,503		20,272,341
Frontier Communications Corp., 8.00%, 04/01/27(b).			89,149		94,141,344
Intelsat Jackson Holdings SA:
5.50%, 08/01/23			33,709		31,447,126
8.50%, 10/15/24(b)			45,349		45,675,059
9.75%, 07/15/25(b)			53,451		55,829,570
Level 3 Financing, Inc.:
5.63%, 02/01/23			4,578		4,635,225
5.38%, 05/01/25			3,452		3,575,547
5.25%, 03/15/26			6,925		7,200,961
4.63%, 09/15/27(b)			13,830		13,955,162
Level 3 Parent LLC, 5.75%, 12/01/22.			5,863		5,886,452
Qualitytech LP, 4.75%, 11/15/25(b)			8,678		8,938,340
Qwest Corp., 6.75%, 12/01/21			8,930		9,651,187
Sable International Finance Ltd., 5.75%, 09/07/27(b).			5,600		5,787,320
Sprint Capital Corp.:
6.88%, 11/15/28			28,749		31,342,160
8.75%, 03/15/32			30,444		37,551,152
Telecom Italia Capital SA:
6.38%, 11/15/33			9,783		10,761,300
6.00%, 09/30/34			15,395		16,395,675

Security		Par (000)		Value
Diversified Telecommunication Services (continued)
7.20%, 07/18/36	USD		1,047	$	1,219,766
7.72%, 06/04/38			3,752		4,539,920
Telecom Italia Finance SA, 7.75%, 01/24/33	EUR		462		745,954
Telecom Italia SpA:
1.13%, 03/26/22(m)			1,600		1,751,796
5.88%, 05/19/23	GBP		400		543,746
4.00%, 04/11/24	EUR		5,364		6,435,526
5.30%, 05/30/24(b)	USD		30,941		33,368,322
2.75%, 04/15/25	EUR		3,713		4,226,096
3.00%, 09/30/25			500		581,246
Telesat Canada(b):
8.88%, 11/15/24	USD		6,251		6,697,946
6.50%, 10/15/27			7,591		7,714,354
Virgin Media Finance plc(b):
6.00%, 10/15/24			3,000		3,090,000
5.75%, 01/15/25			39,516		40,701,480
Virgin Media Secured Finance plc:
5.25%, 01/15/26(b)			4,908		5,030,050
4.88%, 01/15/27	GBP		3,815		4,877,987
5.00%, 04/15/27			1,000		1,294,101
6.25%, 03/28/29			90		117,576
5.50%, 05/15/29(b)	USD		17,074		17,820,987
					1,018,597,787
Electric Utilities — 0.5%
ContourGlobal Power Holdings SA:
3.38%, 08/01/23	EUR		2,714		3,062,753
4.13%, 08/01/25			1,806		2,086,871
Edison International, 5.75%, 06/15/27	USD		2,055		2,307,302
EDP — Energias de Portugal SA, (EUR Swap Annual 5 Year + 4.29%), 4.50%, 04/30/79(a)	EUR		500		603,560
Naturgy Finance BV(a)(k):
(EUR Swap Annual 8 Year + 3.35%), 4.13%			2,700		3,201,725
(EUR Swap Annual 9 Year + 3.08%), 3.38%			1,700		1,982,397
NextEra Energy Operating Partners LP(b):
4.25%, 07/15/24	USD		26,174		26,959,220
4.25%, 09/15/24			5,804		5,985,375
4.50%, 09/15/27			3,889		3,976,502
Vistra Operations Co. LLC(b):
3.55%, 07/15/24			10,550		10,620,022
5.50%, 09/01/26			310		324,322
5.63%, 02/15/27			381		401,212
4.30%, 07/15/29			28,092		28,822,600
					90,333,861
Electrical Equipment — 0.4%
Orano SA, 3.38%, 04/23/26	EUR		900		1,054,477
Sensata Technologies BV(b):
5.63%, 11/01/24	USD		2,346		2,551,275
5.00%, 10/01/25			12,068		12,897,675
Vertiv Group Corp., 9.25%, 10/15/24(b)			21,961		21,164,914
Vertiv Group Corp. (Acquired 05/09/19, cost $26,185,150), 10.00%, 06/30/24(d)(n)			26,995		27,399,925
					65,068,266
Electronic Equipment, Instruments & Components — 0.3%
Belden, Inc., 4.13%, 10/15/26	EUR		2,420		2,806,701
CDW LLC:
5.50%, 12/01/24	USD		25,375		27,937,875
4.25%, 04/01/28			9,335		9,522,634

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 59

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Electronic Equipment, Instruments & Components (continued)
Itron, Inc., 5.00%, 01/15/26(b)	USD		1,171	$	1,206,481
Sensata Technologies, Inc., 4.38%, 02/15/30(b)			9,737		9,724,829
					51,198,520
Energy Equipment & Services — 1.3%
Apergy Corp., 6.38%, 05/01/26			11,427		11,341,297
Archrock Partners LP, 6.88%, 04/01/27(b)			6,621		7,026,271
Nabors Industries, Inc.:
4.63%, 09/15/21			7,468		7,057,260
5.50%, 01/15/23			2,496		2,052,960
Noble Holding International Ltd.:
7.75%, 01/15/24			669		434,850
7.88%, 02/01/26(b)			30,653		22,070,160
Pacific Drilling SA, 8.38%, 10/01/23(b)			32,409		27,223,560
Rowan Cos., Inc., 4.88%, 06/01/22			27,295		20,471,250
Tervita Corp., 7.63%, 12/01/21(b)			15,370		15,619,763
Transocean Pontus Ltd., 6.13%, 08/01/25(b)			3,767		3,823,881
Transocean Poseidon Ltd., 6.88%, 02/01/27(b)			7,800		8,112,000
Transocean, Inc.:
6.50%, 11/15/20			1,241		1,265,820
8.51%, 12/15/21(h)			549		562,725
5.80%, 10/15/22(h)			300		291,750
9.00%, 07/15/23(b)			46,877		48,166,117
7.25%, 11/01/25(b)			9,392		8,276,700
7.50%, 01/15/26(b)			5,795		5,157,550
USA Compression Partners LP:
6.88%, 04/01/26			22,082		22,910,075
6.88%, 09/01/27(b)			12,557		12,965,103
Valaris plc, 4.70%, 03/15/21			2,480		2,157,600
					226,986,692
Entertainment — 0.7%
Entertainment One Ltd., 4.63%, 07/15/26	GBP		1,679		2,245,051
Lions Gate Capital Holdings LLC(b):
6.38%, 02/01/24	USD		4,699		4,968,628
5.88%, 11/01/24			10,166		10,445,565
Live Nation Entertainment, Inc.(b):
5.38%, 06/15/22			228		230,850
4.88%, 11/01/24			1,849		1,915,633
Netflix, Inc.:
4.88%, 04/15/28			5,750		5,850,338
5.88%, 11/15/28			47,061		51,122,364
3.88%, 11/15/29	EUR		2,710		3,130,990
5.38%, 11/15/29(b)	USD		31,926		33,282,855
Pinewood Finance Co. Ltd., 3.25%, 09/30/25	GBP		979		1,229,309
					114,421,583
Equity Real Estate Investment Trusts (REITs) — 2.4%
Brookfield Property REIT, Inc., 5.75%, 05/15/26(b)	USD		11,247		11,753,115
CyrusOne LP:
5.00%, 03/15/24			2,777		2,874,195
5.38%, 03/15/27			2,040		2,175,150
Equinix, Inc.:
2.88%, 03/15/24	EUR		2,251		2,543,912
2.88%, 10/01/25			1,239		1,397,714
2.88%, 02/01/26			414		469,771
GLP Capital LP:
3.35%, 09/01/24	USD		5,100		5,129,070
5.25%, 06/01/25			8,615		9,489,681
5.38%, 04/15/26			3,645		4,008,990

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
5.75%, 06/01/28	USD		4,199	$	4,776,320
4.00%, 01/15/30			25,110		25,234,797
Iron Mountain UK plc, 3.88%, 11/15/25	GBP		2,332		2,878,699
Iron Mountain, Inc.:
3.00%, 01/15/25	EUR		823		916,790
4.88%, 09/15/27(b)	USD		12,972		13,266,205
4.88%, 09/15/29(b)			16,380		16,630,614
iStar, Inc.:
4.63%, 09/15/20			1,946		1,969,722
6.00%, 04/01/22			852		877,219
MGM Growth Properties Operating Partnership LP:
5.63%, 05/01/24			42,550		46,645,437
4.50%, 09/01/26			24,001		25,441,060
5.75%, 02/01/27(b)			4,476		5,025,653
4.50%, 01/15/28			16,130		16,734,875
MPT Operating Partnership LP:
5.50%, 05/01/24			7,145		7,332,556
5.25%, 08/01/26			3,406		3,568,636
5.00%, 10/15/27			49,523		51,875,343
4.63%, 08/01/29			25,387		26,148,610
Ryman Hospitality Properties, Inc., 4.75%, 10/15/27(b)			24,024		24,715,651
SBA Communications Corp.:
4.88%, 07/15/22			1,888		1,913,205
4.00%, 10/01/22			20,023		20,423,460
4.88%, 09/01/24			47,077		48,724,695
Service Properties Trust:
4.35%, 10/01/24			9,016		9,127,034
4.75%, 10/01/26			9,016		9,068,384
VICI Properties 1 LLC, 8.00%, 10/15/23			5,645		6,171,164
					409,307,727
Food & Staples Retailing — 0.3%
Albertsons Cos., Inc.:
5.75%, 03/15/25			9,843		10,122,049
5.88%, 02/15/28(b)			25,698		27,199,791
Casino Guichard Perrachon SA(h):
4.56%, 01/25/23	EUR		200		207,091
3.58%, 02/07/25			500		477,982
Distribuidora Internacional de Alimentacion SA, 1.00%, 04/28/21			2,100		1,792,013
Hipercor SA, 3.88%, 01/19/22			1,300		1,516,460
Iceland Bondco plc, 4.63%, 03/15/25	GBP		500		513,952
Picard Groupe SAS, (EURIBOR 3 Month + 3.00%), 3.00%, 11/30/23(a)	EUR		500		533,814
Tesco Corporate Treasury Services plc, 2.50%, 05/02/25	GBP		1,308		1,634,697
					43,997,849
Food Products — 1.5%
Boparan Finance plc, 5.50%, 07/15/21			350		264,661
Chobani LLC, 7.50%, 04/15/25(b)	USD		19,874		19,029,355
Darling Ingredients, Inc., 5.25%, 04/15/27(b)			8,309		8,724,450
JBS Investments II GmbH, 7.00%, 01/15/26(b)			3,900		4,208,061
JBS USA LUX SA(b):
5.88%, 07/15/24			28,109		28,953,676
5.75%, 06/15/25			33,654		35,061,410
6.75%, 02/15/28			10,605		11,741,723
6.50%, 04/15/29			44,955		49,899,151
5.50%, 01/15/30			29,739		31,522,745
Nomad Foods Bondco plc, 3.25%, 05/15/24	EUR		1,000		1,122,648

60 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Food Products (continued)
Post Holdings, Inc.(b):
5.50%, 03/01/25	USD		11,083	$	11,609,443
5.00%, 08/15/26			2,145		2,224,579
5.75%, 03/01/27			15,493		16,425,679
5.63%, 01/15/28			3,517		3,728,020
5.50%, 12/15/29			18,772		19,569,810
Premier Foods Finance plc, 6.25%, 10/15/23	GBP		800		1,013,149
Simmons Foods, Inc., 7.75%, 01/15/24(b)	USD		13,292		14,388,590
					259,487,150
Gas Utilities — 0.1%
Superior Plus LP, 7.00%, 07/15/26(b)			16,946		17,878,369
Health Care Equipment & Supplies — 0.9%
Hill-Rom Holdings, Inc., 4.38%, 09/15/27(b)			4,343		4,440,066
Hologic, Inc.(b):
4.38%, 10/15/25			13,564		13,903,100
4.63%, 02/01/28			12,102		12,540,697
Immucor, Inc., 11.13%, 02/15/22(b)			4,666		4,718,493
Ortho-Clinical Diagnostics, Inc., 6.63%, 05/15/22(b)			90,887		88,769,333
Sotera Health Holdings LLC, 6.50%, 05/15/23(b)			23,659		24,161,754
Teleflex, Inc.:
5.25%, 06/15/24			414		426,420
4.88%, 06/01/26			9,384		9,782,820
4.63%, 11/15/27			3,930		4,101,937
					162,844,620
Health Care Providers & Services — 5.0%
Acadia Healthcare Co., Inc., 5.13%, 07/01/22			6,468		6,516,510
AHP Health Partners, Inc., 9.75%, 07/15/26(b)			10,244		10,860,504
Centene Corp., 5.38%, 06/01/26(b)			81,287		85,046,524
Community Health Systems, Inc.(b):
8.63%, 01/15/24			36,737		37,930,952
8.00%, 03/15/26			37,150		37,057,125
Eagle Holding Co. II LLC(b)(i):
7.63%, (7.63% Cash or 8.38% PIK), 05/15/22			4,645		4,679,837
7.75%, (7.75% Cash or 8.50% PIK), 05/15/22			16,714		16,860,248
Encompass Health Corp., 5.75%, 11/01/24			428		432,473
Envision Healthcare Corp., 8.75%, 10/15/26(b)			10,680		6,514,800
HCA, Inc.:
5.38%, 02/01/25			22,487		24,567,047
5.88%, 02/15/26			2,551		2,851,508
5.38%, 09/01/26			19,928		21,894,894
5.63%, 09/01/28			57,897		64,514,627
5.88%, 02/01/29			30,017		33,715,995
MEDNAX, Inc.(b):
5.25%, 12/01/23			8,268		8,404,422
6.25%, 01/15/27			30,089		29,861,226
Molina Healthcare, Inc.:
5.38%, 11/15/22(h)			9,225		9,778,869
4.88%, 06/15/25(b)			19,219		19,315,095
MPH Acquisition Holdings LLC, 7.13%, 06/01/24(b)			30,803		28,377,264
NVA Holdings, Inc., 6.88%, 04/01/26(b)			8,631		9,159,649
Polaris Intermediate Corp., 8.50%, (8.50% Cash or 9.25% PIK), 12/01/22(b)(i)			34,538		29,357,583

Security		Par (000)		Value
Health Care Providers & Services (continued)
RegionalCare Hospital Partners Holdings, Inc., 8.25%, 05/01/23(b)	USD		28,682	$	30,510,477
Surgery Center Holdings, Inc.(b):
6.75%, 07/01/25			23,810		21,369,475
10.00%, 04/15/27			11,800		11,977,000
Team Health Holdings, Inc., 6.38%, 02/01/25(b)			11,804		8,156,564
Tenet Healthcare Corp.:
8.13%, 04/01/22			46,546		50,341,826
4.63%, 07/15/24			11,200		11,510,576
4.63%, 09/01/24(b)			17,602		18,106,826
4.88%, 01/01/26(b)			78,740		80,806,925
6.25%, 02/01/27(b)			32,552		33,904,536
5.13%, 11/01/27(b)			46,755		48,314,279
Vizient, Inc., 6.25%, 05/15/27(b)			15,397		16,513,282
WellCare Health Plans, Inc.:
5.25%, 04/01/25			15,431		16,067,529
5.38%, 08/15/26(b)			19,670		20,993,791
					856,270,238
Health Care Technology — 0.3%
IQVIA, Inc.:
3.50%, 10/15/24	EUR		600		665,401
3.25%, 03/15/25(b)			1,962		2,191,944
3.25%, 03/15/25			9,875		11,032,337
5.00%, 10/15/26(b)	USD		12,852		13,462,470
5.00%, 05/15/27(b)			26,853		28,128,518
					55,480,670
Hotels, Restaurants & Leisure — 4.4%
1011778 BC ULC(b):
4.25%, 05/15/24			12,097		12,449,023
5.00%, 10/15/25			62,172		64,288,956
3.88%, 01/15/28			22,564		22,707,507
Aramark International Finance SARL, 3.13%, 04/01/25	EUR		1,140		1,279,074
Boyne USA, Inc., 7.25%, 05/01/25(b)	USD		8,910		9,708,336
Cedar Fair LP, 5.25%, 07/15/29(b)			20,146		21,556,220
Churchill Downs, Inc.(b):
5.50%, 04/01/27			41,406		43,935,907
4.75%, 01/15/28			18,068		18,519,700
Cirsa Finance International SARL:
7.88%, 12/20/23(b)			800		849,200
4.75%, 05/22/25	EUR		466		534,582
Codere Finance 2 Luxembourg SA:
6.75%, 11/01/21			200		214,855
7.63%, 11/01/21(b)	USD		1,700		1,666,000
CPUK Finance Ltd.:
4.25%, 08/28/22	GBP		1,511		1,879,170
4.88%, 08/28/25			350		440,244
Eldorado Resorts, Inc., 6.00%, 09/15/26	USD		4,530		4,960,350
Golden Nugget, Inc., 6.75%, 10/15/24(b)			63,362		64,470,835
Hilton Domestic Operating Co., Inc.:
4.25%, 09/01/24			9,432		9,608,850
5.13%, 05/01/26			17,116		17,971,800
4.88%, 01/15/30(b)			54,134		57,157,384
Hilton Worldwide Finance LLC:
4.63%, 04/01/25			966		994,980
4.88%, 04/01/27			9,576		10,085,922
International Game Technology plc, 3.50%, 06/15/26	EUR		1,250		1,447,590
IRB Holding Corp., 6.75%, 02/15/26(b)	USD		4,701		4,724,505
KFC Holding Co.(b):
5.00%, 06/01/24			2,000		2,075,000
5.25%, 06/01/26			11,539		12,214,031
4.75%, 06/01/27			9,832		10,237,570

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 61

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Hotels, Restaurants & Leisure (continued)
LHMC Finco 2 SARL, 7.25%, (7.25% Cash or 8.00% PIK), 10/02/25(i)	EUR		2,220	$	2,460,049
Marriott Ownership Resorts, Inc., 6.50%, 09/15/26	USD		1,952		2,103,280
MGM Resorts International:
6.63%, 12/15/21			29,211		31,645,737
7.75%, 03/15/22			25,414		28,432,167
6.00%, 03/15/23			2,672		2,943,742
Pinnacle Bidco plc, 6.38%, 02/15/25	GBP		1,145		1,497,514
Sabre GLBL, Inc.(b):
5.38%, 04/15/23	USD		7,952		8,111,040
5.25%, 11/15/23			8,281		8,508,727
Scientific Games International, Inc.:
5.00%, 10/15/25(b)			33,835		34,910,953
3.38%, 02/15/26	EUR		8,200		9,125,279
8.25%, 03/15/26(b)	USD		47,411		50,295,960
Sisal Group SpA, 7.00%, 07/31/23	EUR		800		902,130
Six Flags Entertainment Corp.(b):
4.88%, 07/31/24	USD		14,975		15,499,125
5.50%, 04/15/27			19,964		21,286,216
Station Casinos LLC, 5.00%, 10/01/25(b)			10,943		11,104,956
Stonegate Pub Co. Financing plc(a):
(LIBOR GBP 3 Month + 4.38%), 5.16%, 03/15/22	GBP		951		1,175,866
(LIBOR GBP 3 Month + 6.25%), 7.03%, 03/15/22			1,029		1,265,200
Viking Cruises Ltd.(b):
6.25%, 05/15/25	USD		3,000		3,135,000
5.88%, 09/15/27			45,225		47,920,410
Wyndham Destinations, Inc.(h):
5.40%, 04/01/24			288		303,840
5.75%, 04/01/27			3,170		3,423,600
Wyndham Hotels & Resorts, Inc., 5.38%, 04/15/26(b)			4,841		5,070,948
Wynn Las Vegas LLC, 5.25%, 05/15/27(b)			4,688		4,816,920
Wynn Resorts Finance LLC, 5.13%, 10/01/29(b)			30,373		31,827,867
Yum! Brands, Inc.:
4.75%, 01/15/30(b)			23,935		24,716,717
5.35%, 11/01/43			718		689,280
					749,150,114
Household Durables — 0.9%
Brookfield Residential Properties, Inc.(b):
6.13%, 07/01/22			959		973,964
6.25%, 09/15/27			11,651		11,709,255
Installed Building Products, Inc., 5.75%, 02/01/28(b)			6,390		6,589,688
Lennar Corp.:
8.38%, 01/15/21			7,612		8,154,355
6.25%, 12/15/21			3,054		3,229,605
4.88%, 12/15/23			3,645		3,872,812
5.25%, 06/01/26			2,830		3,059,938
4.75%, 11/29/27			14,244		15,276,690
Mattamy Group Corp.(b):
6.88%, 12/15/23			3,699		3,846,960
6.50%, 10/01/25			6,095		6,399,750
MDC Holdings, Inc., 6.00%, 01/15/43			5,518		5,697,335
Meritage Homes Corp., 5.13%, 06/06/27			4,173		4,402,515
PulteGroup, Inc.:
6.38%, 05/15/33			12,324		13,637,738
6.00%, 02/15/35			7,702		8,202,630
Taylor Morrison Communities, Inc., 5.88%, 06/15/27(b)			12,752		13,995,320

Security		Par (000)		Value
Household Durables (continued)
Tempur Sealy International, Inc., 5.50%, 06/15/26	USD		218	$	227,265
Toll Brothers Finance Corp., 3.80%, 11/01/29			8,829		8,691,091
TRI Pointe Group, Inc.:
4.88%, 07/01/21			882		908,460
5.88%, 06/15/24			1,663		1,771,095
5.25%, 06/01/27			4,355		4,365,888
Williams Scotsman International, Inc.(b):
7.88%, 12/15/22			5,775		6,034,875
6.88%, 08/15/23			15,442		16,175,495
					147,222,724
Household Products — 0.1%
Energizer Holdings, Inc.(b):
6.38%, 07/15/26			3,236		3,466,209
7.75%, 01/15/27			12,797		14,258,417
Spectrum Brands, Inc.:
5.75%, 07/15/25			1,510		1,575,670
5.00%, 10/01/29(b)			5,348		5,441,590
					24,741,886
Independent Power and Renewable Electricity Producers — 1.5%
Calpine Corp.:
6.00%, 01/15/22(b)			2,726		2,735,132
5.38%, 01/15/23			58,280		59,008,500
5.88%, 01/15/24(b)			2,509		2,565,452
5.50%, 02/01/24			776		783,760
5.75%, 01/15/25			32,285		32,849,988
5.25%, 06/01/26(b)			27,978		28,957,230
Clearway Energy Operating LLC:
5.38%, 08/15/24			15,327		15,710,175
5.75%, 10/15/25(b)			13,635		14,350,837
NRG Energy, Inc.:
3.75%, 06/15/24(b)			7,805		8,031,424
6.63%, 01/15/27			21,517		23,310,442
5.75%, 01/15/28			15,058		16,187,350
4.45%, 06/15/29(b)			24,117		25,126,704
5.25%, 06/15/29(b)			23,296		25,050,189
Pattern Energy Group, Inc., 5.88%, 02/01/24(b)			6,341		6,491,599
Talen Energy Supply LLC:
6.50%, 06/01/25			2,582		1,962,320
10.50%, 01/15/26(b)			2,376		2,049,300
					265,170,402
Insurance — 1.2%
Acrisure LLC, 8.13%, 02/15/24(b)			8,996		9,693,190
Aegon NV, (EUR Swap Annual 5 Year + 5.21%), 5.63%(a)(k)	EUR		825		985,412
Alliant Holdings Intermediate LLC, 8.25%, 08/01/23(b)	USD		66,143		67,548,539
AmWINS Group, Inc., 7.75%, 07/01/26(b)			6,147		6,608,025
Ardonagh Midco 3 plc, 8.63%, 07/15/23(b)			11,884		11,468,060
Assicurazioni Generali SpA:
(EURIBOR 3 Month + 4.50%), 4.60%(a)(k)	EUR		900		1,072,017
2.12%, 10/01/30			1,525		1,685,029
(EURIBOR 3 Month + 5.35%), 5.50%, 10/27/47(a)			1,377		1,803,225
(EURIBOR 3 Month + 5.35%), 5.00%, 06/08/48(a)			900		1,148,796
Caisse Nationale de Reassurance Mutuelle Agricole Groupama:
(EURIBOR 3 Month + 5.77%), 6.37%(a)(k)			800		1,016,566

62 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Insurance (continued)
6.00%, 01/23/27	EUR		500	$	693,511
CNO Financial Group, Inc., 5.25%, 05/30/29	USD		20,545		22,496,775
Galaxy Bidco Ltd., 6.50%, 07/31/26	GBP		733		887,291
GTCR AP Finance, Inc., 8.00%, 05/15/27(b)	USD		14,138		14,526,795
HUB International Ltd., 7.00%, 05/01/26(b)			62,608		64,310,938
NN Group NV, (EURIBOR 3 Month + 3.90%), 4.38%(a)(k)	EUR		1,154		1,375,721
					207,319,890
Interactive Media & Services — 0.0%
Rackspace Hosting, Inc., 8.63%, 11/15/24(b)	USD		9,073		8,346,253
Internet & Direct Marketing Retail — 0.1%
Go Daddy Operating Co. LLC, 5.25%, 12/01/27(b)			11,591		12,185,039
Shop Direct Funding plc, 7.75%, 11/15/22	GBP		899		972,721
					13,157,760
IT Services — 1.5%
Banff Merger Sub, Inc.:
8.38%, 09/01/26	EUR		1,247		1,257,991
9.75%, 09/01/26(b)	USD		77,465		73,940,343
Booz Allen Hamilton, Inc., 5.13%, 05/01/25(b)			18,004		18,499,110
Gartner, Inc., 5.13%, 04/01/25(b)			15,196		15,898,815
InterXion Holding NV, 4.75%, 06/15/25	EUR		1,510		1,783,662
Tempo Acquisition LLC, 6.75%, 06/01/25(b)	USD		43,010		44,300,300
United Group BV:
4.38%, 07/01/22	EUR		948		1,053,909
4.88%, 07/01/24			3,096		3,508,857
WEX, Inc., 4.75%, 02/01/23(b)	USD		8,539		8,624,390
Zayo Group LLC:
6.00%, 04/01/23			10,941		11,228,201
6.38%, 05/15/25			20,918		21,541,357
5.75%, 01/15/27(b)			62,734		64,132,968
					265,769,903
Leisure Products — 0.2%
Mattel, Inc., 6.75%, 12/31/25(b)			40,923		42,700,695
Life Sciences Tools & Services — 1.1%
Avantor, Inc.:
4.75%, 10/01/24	EUR		1,237		1,438,737
6.00%, 10/01/24(b)	USD		84,570		90,619,292
9.00%, 10/01/25(b)			51,257		57,407,840
Charles River Laboratories International, Inc., 5.50%, 04/01/26(b)			19,584		20,832,088
Syneos Health, Inc., 7.50%, 10/01/24(b)			10,284		10,643,940
					180,941,897
Machinery — 1.3%
Amsted Industries, Inc., 5.63%, 07/01/27(b)			8,828		9,313,540
Colfax Corp.(b):
6.00%, 02/15/24			25,413		26,895,848
6.38%, 02/15/26			17,717		19,062,385
EnPro Industries, Inc., 5.75%, 10/15/26			5,037		5,370,702
Grinding Media, Inc., 7.38%, 12/15/23(b)			15,098		14,418,590
Manitowoc Co., Inc. (The), 9.00%, 04/01/26(b)			6,911		6,772,780
Mueller Water Products, Inc., 5.50%, 06/15/26(b)			11,150		11,651,750

Security		Par (000)		Value
Machinery (continued)
Navistar International Corp., 6.63%, 11/01/25(b)	USD		23,541	$	23,894,115
Platin 1426 GmbH, 5.38%, 06/15/23	EUR		2,823		2,895,544
RBS Global, Inc., 4.88%, 12/15/25(b)	USD		26,078		26,792,537
SPX FLOW, Inc.(b):
5.63%, 08/15/24			7,784		8,036,980
5.88%, 08/15/26			2,484		2,595,780
Stevens Holding Co., Inc., 6.13%, 10/01/26(b)			7,007		7,453,696
Terex Corp., 5.63%, 02/01/25(b)			10,063		10,327,154
Titan Acquisition Ltd., 7.75%, 04/15/26(b)			32,170		30,159,375
Wabash National Corp., 5.50%, 10/01/25(b)			14,308		14,057,610
					219,698,386
Marine — 0.0%
CMA CGM SA, 6.50%, 07/15/22	EUR		500		425,081
Media — 6.7%
Adelphia Commercial Bonds, Escrow, Series B, 10.50%, 07/15/04(d)(e)(l)	USD		800		—
Altice Financing SA(b):
6.63%, 02/15/23			50,659		51,988,799
7.50%, 05/15/26			32,782		34,830,547
Altice Finco SA:
7.63%, 02/15/25(b)			712		738,700
4.75%, 01/15/28	EUR		1,100		1,158,876
Altice Luxembourg SA:
7.75%, 05/15/22(b)	USD		9,122		9,315,843
7.63%, 02/15/25(b)			36,744		38,305,620
8.00%, 05/15/27	EUR		3,654		4,372,820
10.50%, 05/15/27(b)	USD		45,778		51,591,806
AMC Networks, Inc.:
4.75%, 12/15/22			1,101		1,116,480
5.00%, 04/01/24			2,528		2,603,916
4.75%, 08/01/25			16,105		16,608,281
Century Communications Corp., Escrow, 0.00%, 03/15/13(d)(e)(l)			625		—
Clear Channel Worldwide Holdings, Inc.(b):
9.25%, 02/15/24			55,595		61,080,003
5.13%, 08/15/27			91,614		95,448,046
CSC Holdings LLC:
5.13%, 12/15/21(b)			41,749		41,757,350
5.38%, 07/15/23(b)			26,215		26,903,144
5.25%, 06/01/24			11,740		12,620,500
7.75%, 07/15/25(b)			27,235		29,283,072
6.63%, 10/15/25(b)			866		926,880
10.88%, 10/15/25(b)			77,009		87,208,842
5.50%, 05/15/26(b)			11,572		12,178,373
5.38%, 02/01/28(b)			14,342		15,112,882
6.50%, 02/01/29(b)			39,865		44,308,951
5.75%, 01/15/30(b)			20,470		21,393,606
Diamond Sports Group LLC, 5.38%, 08/15/26(b)			45,906		47,627,475
DISH DBS Corp.:
6.75%, 06/01/21			20,670		21,751,041
5.88%, 07/15/22			55,701		57,929,040
5.00%, 03/15/23			28,142		28,431,863
5.88%, 11/15/24			7,986		7,916,122
Entercom Media Corp., 6.50%, 05/01/27(b)			7,589		7,930,505
GCI LLC, 6.63%, 06/15/24(b)			7,449		8,035,609
Gray Television, Inc.(b):
5.13%, 10/15/24			1,771		1,835,199
7.00%, 05/15/27			10,861		11,932,980

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 63

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Media (continued)
iHeartCommunications, Inc.:
6.38%, 05/01/26	USD		8,374	$	9,044,377
5.25%, 08/15/27(b)			19,076		19,839,040
MDC Partners, Inc., 6.50%, 05/01/24(b)			3,665		3,339,731
Meredith Corp., 6.88%, 02/01/26			2,430		2,469,488
Midcontinent Communications, 5.38%, 08/15/27(b)			8,651		9,105,177
Outfront Media Capital LLC, 5.00%, 08/15/27(b)			32,610		34,227,456
Quebecor Media, Inc., 5.75%, 01/15/23			1,537		1,671,488
Radiate Holdco LLC(b):
6.88%, 02/15/23			3,219		3,311,546
6.63%, 02/15/25			8,069		8,126,290
SES SA(a)(k):
(EUR Swap Annual 5 Year + 4.66%), 4.62%	EUR		500		577,961
(EUR Swap Annual 5 Year + 5.40%), 5.63%			3,000		3,684,931
Sirius XM Radio, Inc.(b):
4.63%, 07/15/24	USD		6,451		6,688,590
5.38%, 04/15/25			1,248		1,293,240
5.38%, 07/15/26			278		291,861
5.00%, 08/01/27			36,093		37,266,022
5.50%, 07/01/29			25,409		27,124,108
Summer BidCo BV, 0.00%, (0.00% Cash or 9.75% PIK), 11/15/25(i)	EUR		1,131		1,296,633
TEGNA, Inc., 5.50%, 09/15/24(b)	USD		2,361		2,431,830
Tele Columbus AG, 3.88%, 05/02/25	EUR		400		415,976
Telenet Finance Luxembourg Notes SARL, 5.50%, 03/01/28(b)	USD		21,400		22,416,500
Telenet Finance VI Luxembourg SCA, 4.88%, 07/15/27	EUR		1,345		1,618,949
Univision Communications, Inc.(b):
5.13%, 05/15/23	USD		10,175		10,206,797
5.13%, 02/15/25			6,595		6,409,351
UPC Holding BV:
5.50%, 01/15/28(b)			1,560		1,618,500
3.88%, 06/15/29	EUR		1,000		1,144,720
UPCB Finance VII Ltd., 3.63%, 06/15/29			1,554		1,797,747
Videotron Ltd., 5.13%, 04/15/27(b)	USD		4,323		4,571,573
WMG Acquisition Corp.:
4.13%, 11/01/24	EUR		1,728		1,946,514
5.50%, 04/15/26(b)	USD		6,577		6,905,850
3.63%, 10/15/26	EUR		822		950,815
Ziggo Bond Co. BV:
4.63%, 01/15/25			849		951,276
5.88%, 01/15/25(b)	USD		28,259		29,036,122
6.00%, 01/15/27(b)			8,705		9,085,844
Ziggo BV:
4.25%, 01/15/27	EUR		3,423		4,020,043
5.50%, 01/15/27(b)	USD		24,019		25,032,602
					1,154,162,119
Metals & Mining — 2.5%
Big River Steel LLC, 7.25%, 09/01/25(b)			17,914		18,899,270
Constellium SE:
5.75%, 05/15/24(b)			25,748		26,456,070
6.63%, 03/01/25(b)			17,252		17,985,210
4.25%, 02/15/26	EUR		1,500		1,683,188
5.88%, 02/15/26(b)	USD		37,031		38,604,817
Freeport-McMoRan, Inc.:
3.55%, 03/01/22			21,555		21,608,887
3.88%, 03/15/23			39,813		40,111,598
4.55%, 11/14/24			4,690		4,806,312
5.00%, 09/01/27			7,565		7,528,007

Security		Par (000)		Value
Metals & Mining (continued)
5.25%, 09/01/29	USD		17,537	$	17,482,197
5.45%, 03/15/43			98,481		88,731,381
Joseph T Ryerson & Son, Inc., 11.00%, 05/15/22(b)			5,799		6,110,696
Kaiser Aluminum Corp., 5.88%, 05/15/24			8,483		8,831,736
New Gold, Inc., 6.25%, 11/15/22(b)			21,503		21,561,058
Novelis Corp.(b):
6.25%, 08/15/24			34,399		35,946,955
5.88%, 09/30/26			37,574		39,403,854
Steel Dynamics, Inc.:
5.25%, 04/15/23			2,444		2,486,770
5.50%, 10/01/24			3,949		4,052,859
4.13%, 09/15/25			5,151		5,202,510
5.00%, 12/15/26			8,051		8,433,422
thyssenkrupp AG:
1.88%, 03/06/23	EUR		1,147		1,248,923
2.88%, 02/22/24			4,272		4,795,945
					421,971,665
Mortgage Real Estate Investment Trusts (REITs) — 0.0%
Starwood Property Trust, Inc., 5.00%, 12/15/21	USD		5,368		5,542,460
Multiline Retail — 0.0%
B&M European Value Retail SA, 4.13%, 02/01/22	GBP		770		959,713
Multi-Utilities — 0.0%(a)
NGG Finance plc:
(EUR Swap Annual 5 Year + 2.14%), 1.62%, 12/05/79	EUR		775		839,457
(EUR Swap Annual 5 Year + 2.53%), 2.13%, 09/05/82			1,000		1,081,776
RWE AG, (EUR Swap Annual 5 Year + 2.64%), 2.75%, 04/21/75			1,818		2,021,944
					3,943,177
Oil, Gas & Consumable Fuels — 7.2%
Aker BP ASA, 4.75%, 06/15/24(b)	USD		13,718		14,328,451
Antero Midstream Partners LP, 5.38%, 09/15/24			4,198		3,776,941
Antero Resources Corp., 5.38%, 11/01/21			11,417		11,017,405
Ascent Resources Utica Holdings LLC, 10.00%, 04/01/22(b)			13,989		13,984,803
Berry Petroleum Co. LLC, 7.00%, 02/15/26(b)			9,865		9,445,737
Brazos Valley Longhorn LLC, 6.88%, 02/01/25			8,238		7,084,680
California Resources Corp., 8.00%, 12/15/22(b)			1,016		502,920
Callon Petroleum Co.:
6.13%, 10/01/24			6,429		6,332,565
6.38%, 07/01/26			17,816		17,385,744
Carrizo Oil & Gas, Inc.:
6.25%, 04/15/23			10,069		9,540,378
8.25%, 07/15/25			13,282		13,011,047
Centennial Resource Production LLC, 6.88%, 04/01/27(b)			9,768		9,743,580
Cheniere Corpus Christi Holdings LLC:
7.00%, 06/30/24			9,855		11,326,351
5.88%, 03/31/25			13,533		15,057,222
5.13%, 06/30/27			42,804		46,843,628
Cheniere Energy Partners LP:
5.25%, 10/01/25			3,159		3,277,462
5.63%, 10/01/26			11,441		12,140,617

64 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
4.50%, 10/01/29(b)	USD		31,457	$	32,204,104
Chesapeake Energy Corp.:
6.63%, 08/15/20			9,925		9,974,625
4.88%, 04/15/22			31,782		25,663,965
5.75%, 03/15/23			18,365		14,049,225
7.00%, 10/01/24			9,292		6,667,010
8.00%, 03/15/26(b)			7,535		5,161,475
CNX Resources Corp., 5.88%, 04/15/22			65,821		63,188,160
Comstock Resources, Inc., 9.75%, 08/15/26			10,751		8,985,578
CONSOL Energy, Inc., 11.00%, 11/15/25(b)			28,985		28,912,537
Covey Park Energy LLC, 7.50%, 05/15/25(b)			14,024		11,219,200
Crestwood Midstream Partners LP:
6.25%, 04/01/23(h)			6,875		7,055,469
5.63%, 05/01/27(b)			19,097		19,496,891
CrownRock LP, 5.63%, 10/15/25(b)			43,836		44,109,098
DCP Midstream Operating LP:
5.38%, 07/15/25			9,807		10,444,455
5.13%, 05/15/29			11,861		12,083,394
6.45%, 11/03/36(b)			14,865		15,496,762
6.75%, 09/15/37(b)			11,508		12,112,170
Denbury Resources, Inc.(b):
9.00%, 05/15/21			19,061		17,679,077
9.25%, 03/31/22			10,904		9,541,000
Endeavor Energy Resources LP(b):
5.50%, 01/30/26			20,800		21,632,000
5.75%, 01/30/28			23,071		24,512,938
EnLink Midstream LLC, 5.38%, 06/01/29			502		479,410
EnLink Midstream Partners LP:
4.40%, 04/01/24			15,656		15,077,511
4.15%, 06/01/25			522		484,155
4.85%, 07/15/26			2,839		2,697,050
5.60%, 04/01/44			7,271		5,944,042
5.05%, 04/01/45			10,255		8,204,000
5.45%, 06/01/47			3,121		2,543,615
Extraction Oil & Gas, Inc.(b):
7.38%, 05/15/24			25,439		16,662,545
5.63%, 02/01/26			22,971		14,069,738
Genesis Energy LP:
6.00%, 05/15/23			4,508		4,524,905
5.63%, 06/15/24			1,884		1,803,930
6.50%, 10/01/25			715		697,125
6.25%, 05/15/26			5,961		5,752,365
Great Western Petroleum LLC, 9.00%, 09/30/21(b)			23,732		20,646,840
Hess Infrastructure Partners LP, 5.63%, 02/15/26(b)			10,250		10,711,250
Indigo Natural Resources LLC, 6.88%, 02/15/26(b)			13,434		12,107,393
Ithaca Energy North Sea plc, 9.38%, 07/15/24(b)			875		913,063
Matador Resources Co., 5.88%, 09/15/26			18,462		18,497,078
MEG Energy Corp.(b):
6.38%, 01/30/23			12,447		12,011,355
7.00%, 03/31/24			3,522		3,398,730
6.50%, 01/15/25			41,213		42,037,260
Murphy Oil Corp.:
5.75%, 08/15/25			2,081		2,112,215
5.63%, 12/01/42(h)			6,168		5,427,840
Neptune Energy Bondco plc, 6.63%, 05/15/25(b)			2,026		2,081,715
NGPL PipeCo LLC, 7.77%, 12/15/37(b)			12,656		16,393,277

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Northern Oil and Gas, Inc., 8.50%, (8.50% Cash or 9.50% PIK), 05/15/23(i)	USD		2,656	$	2,736,002
NuStar Logistics LP, 6.00%, 06/01/26			7,513		8,131,320
Parkland Fuel Corp., 5.88%, 07/15/27(b)			10,796		11,328,351
Parsley Energy LLC(b):
6.25%, 06/01/24			3,672		3,800,520
5.38%, 01/15/25			18,270		18,498,375
5.25%, 08/15/25			6,084		6,173,496
5.63%, 10/15/27			10,644		10,989,930
PBF Holding Co. LLC, 7.25%, 06/15/25			6,180		6,404,025
PDC Energy, Inc.:
1.13%, 09/15/21(m)			484		446,051
6.13%, 09/15/24			1,849		1,844,378
5.75%, 05/15/26			6,740		6,639,574
QEP Resources, Inc.:
6.88%, 03/01/21			8,213		8,151,402
5.38%, 10/01/22			17,076		16,334,048
5.25%, 05/01/23			6,833		6,337,744
5.63%, 03/01/26			15,030		12,967,884
Range Resources Corp.:
5.75%, 06/01/21			11,584		11,497,120
5.88%, 07/01/22			4,045		3,873,087
5.00%, 08/15/22			7,325		6,867,188
Repsol International Finance BV(a):
(EUR Swap Annual 6 Year + 3.56%), 3.88%(k)	EUR		1,151		1,314,123
(EUR Swap Annual 10 Year + 4.20%), 4.50%, 03/25/75			1,714		2,146,222
SM Energy Co.:
6.13%, 11/15/22	USD		14,560		13,953,576
5.00%, 01/15/24			6,742		6,050,945
5.63%, 06/01/25			2,710		2,323,283
6.75%, 09/15/26			6,106		5,342,750
6.63%, 01/15/27			1,914		1,650,825
Southwestern Energy Co.:
6.20%, 01/23/25(h)			4,863		4,279,343
7.75%, 10/01/27			4,792		4,178,025
SRC Energy, Inc., 6.25%, 12/01/25			2,220		2,197,756
Sunoco LP:
4.88%, 01/15/23			7,653		7,853,891
5.50%, 02/15/26			5,098		5,320,630
6.00%, 04/15/27			5,692		6,061,866
Tallgrass Energy Partners LP(b):
4.75%, 10/01/23			5,885		5,885,000
5.50%, 09/15/24			13,142		13,076,290
5.50%, 01/15/28			25,673		25,092,790
Targa Resources Partners LP:
4.25%, 11/15/23			3,270		3,294,525
5.13%, 02/01/25			4,963		5,103,701
5.88%, 04/15/26			16,678		17,673,677
5.38%, 02/01/27			728		752,570
6.50%, 07/15/27(b)			15,935		17,386,519
5.00%, 01/15/28			10,670		10,790,571
6.88%, 01/15/29(b)			42,306		46,222,266
TerraForm Power Operating LLC(b):
4.25%, 01/31/23			9,326		9,512,520
6.63%, 06/15/25(h)			2,845		2,998,658
5.00%, 01/31/28			13,686		14,233,440
Whiting Petroleum Corp., 6.63%, 01/15/26			908		612,900
WPX Energy, Inc.:
8.25%, 08/01/23			8,039		9,043,875
5.75%, 06/01/26			6,302		6,459,550

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 65

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
5.25%, 10/15/27	USD		7,721	$	7,759,605
					1,231,859,258
Paper & Forest Products — 0.1%
Norbord, Inc., 6.25%, 04/15/23(b)			9,325		9,861,188
Personal Products — 0.1%
Avon International Capital plc, 6.50%, 08/15/22(b)			5,504		5,703,520
Coty, Inc.:
4.00%, 04/15/23	EUR		700		763,601
4.75%, 04/15/26			400		438,901
6.50%, 04/15/26(b)	USD		4,299		4,170,030
					11,076,052
Pharmaceuticals — 2.4%
Bausch Health Americas, Inc.(b):
9.25%, 04/01/26			5,491		6,239,094
8.50%, 01/31/27			50,273		56,421,388
Bausch Health Cos., Inc.:
5.50%, 03/01/23(b)			9,122		9,236,025
4.50%, 05/15/23	EUR		19,671		21,650,522
5.88%, 05/15/23(b)	USD		7,612		7,707,150
7.00%, 03/15/24(b)			27,858		29,277,644
6.13%, 04/15/25(b)			33,939		35,169,289
5.50%, 11/01/25(b)			48,714		50,971,894
9.00%, 12/15/25(b)			20,519		23,032,577
5.75%, 08/15/27(b)			21,926		23,698,279
7.00%, 01/15/28(b)			25,194		27,136,457
7.25%, 05/30/29(b)			28,835		31,496,470
Bayer AG(a):
(EUR Swap Annual 5 Year + 2.55%), 3.75%, 07/01/74	EUR		1,800		2,094,216
(EUR Swap Annual 5 Year + 2.01%), 2.38%, 04/02/75			1,800		1,982,918
Catalent Pharma Solutions, Inc.(b):
4.88%, 01/15/26	USD		17,224		17,719,190
5.00%, 07/15/27			19,771		20,512,412
Diocle Spa, (EURIBOR 3 Month + 3.88%), 3.88%, 06/30/26(a)	EUR		981		1,087,953
Elanco Animal Health, Inc., 4.90%, 08/28/28	USD		11,807		12,889,212
Nidda BondCo GmbH:
5.00%, 09/30/25	EUR		500		557,740
7.25%, 09/30/25			1,899		2,193,176
Par Pharmaceutical, Inc., 7.50%, 04/01/27(b)	USD		36,966		33,870,098
Rossini SARL, 6.75%, 10/30/25	EUR		4,307		5,173,958
					420,117,662
Professional Services — 1.0%
Dun & Bradstreet Corp. (The)(b):
6.88%, 08/15/26	USD		36,839		40,154,510
10.25%, 02/15/27			33,708		37,289,475
House of Finance NV (The), 4.38%, 07/15/26	EUR		1,556		1,731,922
Intertrust Group BV, 3.38%, 11/15/25			2,973		3,406,493
Jaguar Holding Co. II, 6.38%, 08/01/23(b)	USD		79,457		82,138,674
					164,721,074
Real Estate Management & Development — 0.3%
ADLER Real Estate AG, 3.00%, 04/27/26	EUR		1,700		1,957,553
Consus Real Estate AG, 9.63%, 05/15/24			841		921,268
DEMIRE Deutsche Mittelstand Real Estate AG, 1.88%, 10/15/24			1,000		1,083,487

Security		Par (000)		Value
Real Estate Management & Development (continued)
Five Point Operating Co. LP, 7.88%, 11/15/25(b)	USD		12,818	$	13,010,270
Greystar Real Estate Partners LLC, 5.75%, 12/01/25(b)			9,567		9,842,051
Howard Hughes Corp. (The), 5.38%, 03/15/25(b)			7,320		7,612,800
Newmark Group, Inc., 6.13%, 11/15/23			4,887		5,301,574
Residomo SRO, 3.38%, 10/15/24	EUR		1,903		2,142,882
Summit Properties Ltd., 2.00%, 01/31/25			1,140		1,192,965
TLG Finance SARL, (EUR Swap Annual 5 Year + 3.98%), 3.38%(a)(k)			1,000		1,110,659
Unique Pub Finance Co. plc (The), Series N, 6.46%, 03/30/32(h)	GBP		2,266		3,200,068
WeWork Cos., Inc., 7.88%, 05/01/25(b)	USD		10,536		8,942,430
					56,318,007
Road & Rail — 0.6%
Algeco Global Finance plc:
6.50%, 02/15/23	EUR		5,000		5,463,374
8.00%, 02/15/23(b)	USD		13,207		13,177,945
Avis Budget Car Rental LLC, 5.75%, 07/15/27(b)			9,741		10,049,790
Avis Budget Finance plc, 4.75%, 01/30/26	EUR		3,282		3,814,206
Capitol Investment Merger Sub 2 LLC, 10.00%, 08/01/24(b)	USD		8,948		9,283,550
Europcar Mobility Group, 4.00%, 04/30/26	EUR		1,845		2,046,149
Hertz Corp. (The), 7.63%, 06/01/22(b)	USD		24,420		25,427,325
Hertz Holdings Netherlands BV, 5.50%, 03/30/23	EUR		2,939		3,350,397
Loxam SAS:
3.25%, 01/14/25			1,431		1,604,473
3.75%, 07/15/26			1,202		1,355,974
Uber Technologies, Inc.(b):
7.50%, 11/01/23	USD		13,755		13,858,163
7.50%, 09/15/27			18,384		18,338,040
					107,769,386
Semiconductors & Semiconductor Equipment — 0.3%
Advanced Micro Devices, Inc., 7.50%, 08/15/22			3,867		4,374,544
Entegris, Inc., 4.63%, 02/10/26(b)			9,420		9,749,700
Infineon Technologies AG(a)(k):
(EUR Swap Annual 5 Year + 3.39%), 1.00%	EUR		1,600		1,735,200
(EUR Swap Annual 5 Year + 4.00%), 1.00%			700		759,715
Qorvo, Inc., 5.50%, 07/15/26	USD		13,048		13,781,950
Sensata Technologies UK Financing Co. plc, 6.25%, 02/15/26(b)			7,060		7,518,900
Versum Materials, Inc., 5.50%, 09/30/24(b)			7,600		8,094,000
					46,014,009
Software — 4.0%
ACI Worldwide, Inc., 5.75%, 08/15/26(b)			36,684		38,885,040
Ascend Learning LLC:
6.88%, 08/01/25(b)			40,759		42,330,940
CDK Global, Inc.:
4.88%, 06/01/27			33,458		34,836,470
5.25%, 05/15/29(b)			6,841		7,080,435
Change Healthcare Holdings LLC, 5.75%, 03/01/25(b)			38,194		38,766,910
Genesys Telecommunications Laboratories, Inc., 10.00%, 11/30/24(b)			52,425		56,674,570

66 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Software (continued)
Infor US, Inc., 6.50%, 05/15/22	USD		114,610	$	116,472,412
Informatica LLC, 7.13%, 07/15/23(b)			40,152		40,854,660
Nuance Communications, Inc.:
6.00%, 07/01/24			5,774		6,033,830
5.63%, 12/15/26			6,037		6,384,128
PTC, Inc., 6.00%, 05/15/24			9,563		10,017,243
RP Crown Parent LLC, 7.38%, 10/15/24(b)			30,480		31,699,200
Solera LLC, 10.50%, 03/01/24(b)			106,384		112,460,654
Sophia LP, 9.00%, 09/30/23(b)			14,234		14,572,057
SS&C Technologies, Inc., 5.50%, 09/30/27(b)			68,544		71,630,194
TIBCO Software, Inc., 11.38%, 12/01/21(b)			54,723		57,100,030
Veritas US, Inc., 7.50%, 02/01/23(b)			8,806		8,704,229
					694,503,002
Specialty Retail — 1.3%
Asbury Automotive Group, Inc., 6.00%, 12/15/24			16,795		17,382,825
eG Global Finance plc:
3.63%, 02/07/24	EUR		1,746		1,845,961
4.38%, 02/07/25			2,717		2,872,553
6.75%, 02/07/25(b)	USD		23,041		22,493,776
Group 1 Automotive, Inc.:
5.00%, 06/01/22(h)			5,548		5,603,480
5.25%, 12/15/23(b)			1,743		1,790,932
L Brands, Inc.:
6.88%, 11/01/35			19,575		16,956,844
6.75%, 07/01/36			3,311		2,808,887
Murphy Oil USA, Inc., 4.75%, 09/15/29			7,936		8,114,560
Penske Automotive Group, Inc., 5.50%, 05/15/26			1,524		1,593,875
PetSmart, Inc.(b):
7.13%, 03/15/23			8,957		8,419,580
5.88%, 06/01/25			42,216		42,110,460
SRS Distribution, Inc., 8.25%, 07/01/26(b)			12,585		12,836,700
Staples, Inc.(b):
7.50%, 04/15/26			65,936		67,933,861
10.75%, 04/15/27			13,776		14,154,840
Tendam Brands SAU, 5.00%, 09/15/24	EUR		1,501		1,670,911
					228,590,045
Technology Hardware, Storage & Peripherals — 0.6%
Dell International LLC(b):
4.42%, 06/15/21	USD		5,347		5,513,334
7.13%, 06/15/24			30,704		32,362,016
NCR Corp.(b):
5.75%, 09/01/27			5,998		6,207,930
6.13%, 09/01/29			13,563		14,296,080
Western Digital Corp., 4.75%, 02/15/26			28,444		29,261,765
Xerox Corp.:
4.80%, 03/01/35			19,432		16,565,780
6.75%, 12/15/39			1,333		1,352,995
					105,559,900
Textiles, Apparel & Luxury Goods — 0.1%
European TopSoho SARL, 4.00%, 09/21/21(m)	EUR		1,800		1,826,048
Kering SA, 0.00%, 09/30/22(m)(o)			300		353,961
William Carter Co. (The), 5.63%, 03/15/27(b)	USD		10,831		11,589,170
					13,769,179

Security		Par (000)		Value
Thrifts & Mortgage Finance — 0.3%
Deutsche Pfandbriefbank AG, 4.60%, 02/22/27	EUR		700	$	836,959
Ladder Capital Finance Holdings LLLP, 5.25%, 10/01/25(b)	USD		7,960		8,139,100
Nationstar Mortgage Holdings, Inc.(b):
8.13%, 07/15/23			16,818		17,532,765
9.13%, 07/15/26			17,303		18,427,695
					44,936,519
Trading Companies & Distributors — 1.2%
Beacon Roofing Supply, Inc.(b):
4.88%, 11/01/25			3,899		3,820,435
4.50%, 11/15/26			4,496		4,540,960
Flexi-Van Leasing, Inc., 10.00%, 02/15/23(b)			6,105		5,967,638
Fortress Transportation & Infrastructure Investors LLC(b):
6.75%, 03/15/22			3,498		3,655,410
6.50%, 10/01/25			3,567		3,665,093
HD Supply, Inc., 5.38%, 10/15/26(b)			84,823		89,806,351
Herc Holdings, Inc., 5.50%, 07/15/27(b)			25,695		26,722,800
United Rentals North America, Inc.:
4.63%, 07/15/23			639		653,122
5.50%, 07/15/25			12,489		12,994,804
4.63%, 10/15/25			16,529		16,867,638
5.88%, 09/15/26			12,612		13,448,176
6.50%, 12/15/26			2,152		2,344,604
5.50%, 05/15/27			8,093		8,578,580
5.25%, 01/15/30			15,627		16,379,127
					209,444,738
Transportation Infrastructure — 0.0%
Swissport Financing SARL, 5.25%, 08/15/24	EUR		1,682		1,899,753
Wireless Telecommunication Services — 2.0%
Connect Finco SARL, 6.75%, 10/01/26(b)	USD		75,502		76,917,663
Digicel International Finance Ltd., 8.75%, 05/25/24(b)			16,144		15,311,575
Gogo Intermediate Holdings LLC, 9.88%, 05/01/24(b)			26,926		28,810,820
Hughes Satellite Systems Corp., 5.25%, 08/01/26			7,666		8,202,620
Matterhorn Telecom SA, 4.00%, 11/15/27	EUR		2,000		2,283,903
SoftBank Group Corp.:
4.00%, 04/20/23			5,541		6,457,642
4.50%, 04/20/25			1,400		1,674,045
4.75%, 07/30/25			3,209		3,863,993
3.13%, 09/19/25			600		667,867
5.00%, 04/15/28			1,896		2,292,142
4.00%, 09/19/29			900		1,010,384
Sprint Corp.:
7.88%, 09/15/23	USD		27,262		29,946,217
7.13%, 06/15/24			9,653		10,404,003
7.63%, 02/15/25			8,088		8,896,800
7.63%, 03/01/26			47,334		52,244,902
Telefonica Europe BV(a)(k):
(GBP Swap 5 Year + 4.46%), 6.75%	GBP		1,200		1,556,610
(EUR Swap Annual 5 Year + 3.86%), 3.75%	EUR		1,200		1,381,839
(EUR Swap Annual 5 Year + 2.33%), 2.63%			1,500		1,663,713
(EUR Swap Annual 10 Year + 4.30%), 5.88%			2,600		3,278,555
(EUR Swap Annual 6 Year + 4.11%), 4.38%			4,000		4,793,487

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 67

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Wireless Telecommunication Services (continued)
(EUR Swap Annual 8 Year + 2.97%), 3.88%	EUR		2,200	$	2,571,823
(EUR Swap Annual 8 Year + 3.07%), 2.87%			900		987,488
T-Mobile USA, Inc.:
4.00%, 04/15/22	USD		1,180		1,209,500
6.00%, 03/01/23			2,626		2,675,080
6.00%, 04/15/24			1,489		1,544,837
6.38%, 03/01/25			8,418		8,720,711
5.13%, 04/15/25			866		896,310
6.50%, 01/15/26			3,524		3,788,970
4.50%, 02/01/26			17,255		17,760,571
4.75%, 02/01/28			29,201		30,558,847
Vodafone Group plc:
0.00%, 11/26/20(m)(o)	GBP		500		605,221
(EUR Swap Annual 5 Year + 3.43%), 4.20%, 10/03/78(a)	EUR		2,100		2,609,276
(EUR Swap Annual 5 Year + 2.67%), 3.10%, 01/03/79(a)			2,600		2,998,235
Xplornet Communications, Inc., 9.63%, (9.63% Cash or 10.63% PIK), 06/01/22(b)(i)	USD		6,882		7,002,609
					345,588,258
Total Corporate Bonds — 82.5% (Cost: $13,783,333,875)					14,194,216,360
Floating Rate Loan Interests — 8.5%(j)
Aerospace & Defense — 0.1%
Atlantic Aviation FBO, Inc., Term Loan B, (LIBOR USD 1 Month + 3.75%), 5.80%, 12/06/25(d)			2,611		2,627,588
Sequa Mezzanine Holdings LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.19%, 11/28/21			10,327		10,223,556
					12,851,144
Airlines — 0.1%
WestJet Airlines Ltd., Term Loan, 08/07/26(p)			15,025		15,128,372
Auto Components — 0.1%
Panther BF Aggregator 2 LP, Term Loan B, 04/30/26(p)			21,771		21,540,175
Building Products — 0.0%(p)
Advanced Drainage Systems, Inc., Term Loan, 09/18/26			1,305		1,309,894
CPG International, Inc., Term Loan, 05/05/24			2,100		2,089,040
					3,398,934
Capital Markets — 0.1%
Jefferies Finance LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.88%, 06/03/26			9,596		9,580,980
Travelport Finance (Luxembourg) SA, 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.10%, 05/29/26			17,282		15,578,827
					25,159,807
Chemicals — 0.4%
Alpha 3 BV, Term Loan, 01/31/24(p)			31,700		31,224,715
Ascend Performance Materials LLC, Term Loan B, 08/14/26(p)			20,349		20,361,820

Security		Par (000)		Value
Chemicals (continued)
Invictus Co., Term Loan B26, (LIBOR USD 3 Month + 6.75%), 8.90%, 03/30/26(d)	USD		2,582	$	2,375,411
Momentive Performance Materials, Inc., Term Loan B, 05/15/24(p)			6,065		6,019,411
					59,981,357
Commercial Services & Supplies — 0.7%
Brand Energy & Infrastructure Services, Inc., Term Loan, 06/21/24(p)			85,139		83,010,586
Capri Acquisitions Bidco Ltd., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.51%, 11/01/24			4,000		3,946,240
Diamond (BC) BV, Term Loan, 09/06/24(p)			11,086		10,545,360
GFL Environmental, Inc., Term Loan B, 05/30/25(p)			18,249		18,086,396
KAR Auction Services, Inc., Term Loan B, 09/19/26(p)			2,835		2,845,472
					118,434,054
Construction & Engineering — 0.1%
SRS Distribution, Inc., Term Loan B, 05/23/25(p)			18,013		17,532,754
Construction Materials — 0.0%
Core & Main LP, Term Loan, (LIBOR USD 3 Month + 2.75%), 4.85% - 4.88%, 08/01/24			3,500		3,467,205
Containers & Packaging — 0.1%
BWAY Holding Co., Term Loan, (LIBOR USD 3 Month + 3.25%), 5.59%, 04/03/24			8,489		8,302,341
Charter NEX US, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.50%), 5.54%, 05/16/24			4,294		4,287,968
					12,590,309
Diversified Consumer Services — 0.0%
TierPoint LLC, Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 05/06/24			6,851		6,343,530
Diversified Financial Services — 0.2%(p)
Sotheby’s, Inc., Term Loan B, 01/22/27			7,411		7,323,031
Triton Bidco, Term Loan B, 09/10/26			32,284		31,754,220
					39,077,251
Diversified Telecommunication Services — 0.3%
Altice France SA, Term Loan, (LIBOR USD 1 Month + 4.00%), 6.03%, 08/14/26			10,878		10,841,515
CenturyLink, Inc., Term Loan, (LIBOR USD 1 Month + 2.75%), 4.79%, 01/31/25			33,098		32,859,068
					43,700,583
Energy Equipment & Services — 0.5%
McDermott International, Inc., Term Loan, 05/09/25(p)			60,758		38,201,798
Pioneer Energy Services Corp., Term Loan, (LIBOR USD 1 Month + 7.75%), 9.80%, 11/08/22(d)			41,248		39,186,043
					77,387,841

68 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Entertainment — 0.0%
Renaissance Learning, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 05/24/25	USD		3,192	$	3,126,876
Food & Staples Retailing — 0.0%
US Foods, Inc., Term Loan B, 08/14/26(p)			7,192		7,214,511
Food Products — 0.0%
Chobani LLC, Term Loan, 10/10/23(p)			6,895		6,830,353
Health Care Equipment & Supplies — 0.3%
Immucor, Inc., 1st Lien Term Loan, (LIBOR USD 3 Month + 5.00%), 7.10%, 06/15/21			43,927		43,831,092
Health Care Providers & Services — 0.5%
AHP Health Partners, Inc., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.54%, 06/30/25			6,851		6,859,300
Azalea TopCo, Inc., Term Loan, (LIBOR USD 1 Month + 3.50%), 5.54%, 07/24/26			18,004		17,944,047
Envision Healthcare Corp., Term Loan, 10/10/25(p)			48,309		39,265,949
Gentiva Health Services, Inc., Term Loan U, (LIBOR USD 1 Month + 3.75%), 5.81%, 07/02/25			13,191		13,257,116
Quorum Health Corp., 1st Lien Term Loan, (LIBOR USD 3 Month + 6.75%), 9.01%, 04/29/22			10,722		10,539,299
					87,865,711
Health Care Technology — 0.2%
Athenahealth, Inc., Term Loan B, (LIBOR USD 3 Month + 4.50%), 6.68%, 02/05/26			42,047		41,889,202
Hotels, Restaurants & Leisure — 0.2%
Nascar Holdings, Inc., Term Loan, 07/27/26(p)			9,567		9,625,263
Stars Group Holdings BV, Term Loan, (LIBOR USD 3 Month + 3.50%), 5.60%, 07/10/25			23,691		23,779,992
					33,405,255
Independent Power and Renewable Electricity Producers — 0.0%
Calpine Corp., Term Loan, (LIBOR USD 1 Month + 2.50%), 4.54%, 08/12/26			4,107		4,112,257
Industrial Conglomerates — 0.3%
Vertiv Co., Term Loan B, 11/30/23(p)			46,737		44,400,080
Insurance — 0.4%
Alliant Holdings Intermediate LLC, Term Loan, (LIBOR USD 1 Month + 3.00%), 5.05%, 05/09/25			5,485		5,387,570
Asurion LLC, 2nd Lien Term Loan B2, (LIBOR USD 1 Month + 6.50%), 8.54%, 08/04/25			22,991		23,347,361
Sedgwick, 1st Lien Term Loan, 12/31/25(p)			23,154		22,748,418
Sedgwick, Inc., 1st Lien Term Loan B, (LIBOR USD 1 Month + 4.00%), 6.04%, 09/03/26			12,078		12,086,788
					63,570,137

Security		Par (000)		Value
IT Services — 0.6%
CCC Information Services, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 6.75%), 8.79%, 04/28/25	USD		2,118	$	2,131,977
DigiCert Holdings, Inc., Term Loan B, 08/07/26(p)			10,778		10,737,583
Mitchell International, Inc., 1st Lien Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 11/29/24			6,626		6,341,268
Mitchell International, Inc., 2nd Lien Term Loan, (LIBOR USD 1 Month + 7.25%), 9.29%, 12/01/25(d)			5,095		4,636,871
Peak 10 Holding Corp., 2nd Lien Term Loan, (LIBOR USD 3 Month + 7.25%), 9.38%, 08/01/25			3,818		2,749,052
SS&C Technologies Holdings, Inc., Term Loan B, (LIBOR USD 1 Month + 2.25%), 4.29%, 04/16/25			6,922		6,939,057
Veritas US, Inc., Term Loan B1, (LIBOR USD 3 Month + 4.50%), 6.54% - 6.60%, 01/27/23			4,140		3,903,120
Verscend Holding Corp., Term Loan B, (LIBOR USD 1 Month + 4.50%), 6.54%, 08/27/25			64,760		64,922,298
					102,361,226
Life Sciences Tools & Services — 0.3%
Albany Molecular Research, Inc., Term Loan, (LIBOR USD 1 Month + 3.25%), 5.29%, 08/30/24			4,065		3,999,930
Sotera Health Holdings LLC, Term Loan:
(LIBOR USD 1 Month + 3.00%), 5.04% , 05/15/22			35,390		34,948,018
05/15/22(p)			3,491		3,479,624
					42,427,572
Machinery — 0.3%(p)
MHI Holdings LLC, Term Loan B, 09/20/26(d)			11,110		11,082,225
Titan Acquisition Ltd., Term Loan, 03/28/25			40,300		38,633,435
					49,715,660
Media — 1.0%
Ascend Learning LLC, Term Loan B, 07/12/24(p)			7,663		7,626,682
Clear Channel Outdoor Holdings, Inc., Term Loan, 08/21/26(p)			42,308		42,398,539
Intelsat Jackson Holdings SA, Term Loan:
(LIBOR USD 1 Month + 3.75%), 5.80% , 11/27/23			4,956		4,966,854
(LIBOR USD 1 Month + 4.50%), 6.55% , 01/02/24			15,189		15,353,337
(LIBOR USD 6 Month + 6.63%), 6.63% , 01/02/24			84,234		85,944,954
Promotora de Informaciones SA, Term Loan, (EURIBOR 6 Month + 4.00%), 4.00%, 12/31/22	EUR		450		476,480
Xplornet Communications, Inc., Term Loan, (LIBOR USD 3 Month + 4.00%), 6.10%, 09/09/21(d)	USD		8,980		8,957,962
					165,724,808

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 69

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Multiline Retail — 0.1%
Neiman Marcus Group Ltd. LLC, 1st Lien Term Loan, (LIBOR USD 1 Month + 6.00%), 8.06%, 10/25/23	USD		14,472	$	10,969,232
Oil, Gas & Consumable Fuels — 0.2%
BCP Raptor II LLC, Term Loan, (LIBOR USD 1 Month + 4.75%), 6.79%, 11/03/25			3,588		3,214,565
California Resources Corp., Term Loan, 12/31/21(p)			24,018		20,850,339
CNX Resources Corp., Term Loan, (LIBOR USD 1 Month + 4.50%), 6.55%, 11/28/22			10,554		10,448,425
Midcoast Operating LP, Term Loan, (LIBOR USD 3 Month + 5.50%), 7.60%, 06/30/25			1,711		1,679,339
					36,192,668
Pharmaceuticals — 0.1%
Bausch Health Cos., Inc., Term Loan, (LIBOR USD 1 Month + 3.00%), 5.04%, 06/02/25			8,752		8,783,726
Endo Pharmaceuticals, Inc., Term Loan B, (LIBOR USD 1 Month + 4.25%), 6.31%, 04/29/24			12,313		11,185,654
Jaguar Holding Co. I, Term Loan, (LIBOR USD 1 Month + 2.50%), 4.54%, 08/18/22			3,670		3,671,665
					23,641,045
Professional Services — 0.1%
Dun & Bradstreet Corp. (The), 1st Lien Term Loan B, (LIBOR USD 1 Month + 5.00%), 7.05%, 02/06/26			13,660		13,740,457
Road & Rail — 0.1%
Uber Technologies, Inc., Term Loan(p):
07/13/23			3,491		3,461,190
(LIBOR USD 1 Month + 4.00%), 6.03% , 03/14/25			21,310		21,154,463
					24,615,653
Semiconductors & Semiconductor Equipment — 0.0%
ON Semiconductor Corp., Term Loan B, 09/19/26(p)			5,733		5,757,129
Software — 0.9%
Infor US, Inc., Term Loan, (LIBOR USD 3 Month + 2.75%), 4.85%, 02/01/22			6,600		6,605,076
Kronos, Inc., 2nd Lien Term Loan B, (LIBOR USD 3 Month + 8.25%), 10.50%, 11/01/24			35,285		35,770,137
Refinitiv US Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 10/01/25			92,309		92,770,105
SS&C Technologies Holdings, Inc., Term Loan, (LIBOR USD 1 Month + 2.25%), 4.29%, 04/16/25			4,126		4,135,908
TIBCO Software, Inc., Term Loan, (LIBOR USD 1 Month + 4.00%), 6.07%, 06/30/26			9,624		9,628,042
Ultimate Software Group, Inc. (The), 1st Lien Term Loan, (LIBOR USD 1 Month + 3.75%), 5.79%, 05/04/26			4,770		4,793,365
					153,702,633

Security		Par (000)		Value
Wireless Telecommunication Services — 0.2%
Ligado Networks LLC, Term Loan, 12/07/20(p)	USD		62,796	$	21,955,821
New LightSquared LLC, 1st Lien Term Loan, (LIBOR USD 3 Month + 0.00%), 0.00%, 12/07/20			13,464		10,516,606
					32,472,427
Total Floating Rate Loan Interests — 8.5% (Cost: $1,530,715,343)					1,454,159,300
Foreign Agency Obligations — 0.0%
France — 0.0%
Electricite de France SA(a)(k):
(EUR Swap Annual 6 Year + 3.44%), 4.00%	EUR		2,100		2,463,263
(GBP Swap 13 Year + 3.96%), 6.00%	GBP		500		667,953
					3,131,216
Total Foreign Agency Obligations — 0.0% (Cost: $3,190,717)					3,131,216
		Shares
Investment Companies — 3.1%
iShares 0-5 Year High Yield Corporate Bond ETF*			1,500,000		69,735,000
iShares Broad USD High Yield Corporate Bond ETF*			1,687,800		69,115,410
iShares iBoxx $ High Yield Corporate Bond ETF(f)*			1,784,036		155,514,418
SPDR Bloomberg Barclays High Yield Bond ETF			1,281,652		139,366,838
SPDR Bloomberg Barclays Short Term High Yield Bond ETF			3,282,800		88,668,428
SPDR S&P Oil & Gas Exploration & Production ETF			666,910		14,912,108
Total Investment Companies — 3.1% (Cost: $538,700,274)					537,312,202
		Par (000)
Non-Agency Mortgage-Backed Securities — 0.0%
Collateralized Mortgage Obligations — 0.0%
CGMSE_14-2X, Series 2014-2X, 5.70%, 11/17/31(c)	EUR		1,255		1,313,718
Commercial Mortgage-Backed Securities — 0.0%
ROCKT(c):
Series 2019-1A, 5.37%, 04/20/32	USD		998		993,617
Series 2019-1A, 6.47%, 04/20/32			3,922		3,908,238
					4,901,855
Total Non-Agency Mortgage-Backed Securities — 0.0% (Cost: $6,333,863)					6,215,573
		Beneficial Interest (000)
Other Interests — 0.0%(q)
Auto Components — 0.0%
Lear Corp., Escrow(d)(e)(l)			15,314		2

70 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio (Percentages shown are based on Net Assets)

Security		Beneficial Interest (000)		Value
Capital Markets — 0.0%
Lehman Brothers Holdings Capital Trust Escrow Bonds(e)(l)	USD		11,550	$	160,545
Lehman Brothers Holdings Capital Trust VII Escrow Bonds			5,500		76,450
Lehman Brothers Holdings Capital Trust VII Escrow Bonds(e)(l)			1,000		13,900
Lehman Brothers Holdings, Inc.(e)(l)			5,675		78,882
					329,777
Independent Power and Renewable Electricity Producers — 0.0%(d)(e)(l)
Mirant America Corp., Escrow			1,864		—
Mirant America Corp., Escrow(f)			3,270		1
					1
Media — 0.0%
Adelphia Communications Corp., Escrow(d)(e)(l)			325		—
Total Other Interests — 0.0%					329,780
		Par (000)
Preferred Securities — 1.9%
Capital Trusts — 1.5%
Banks — 1.4%(j)(k)
Bank of America Corp.:
Series X, 6.25%			27,568		29,980,200
Series Z, 6.50%			21,031		23,396,987
Series AA, 6.10%			30,014		32,790,295
Series DD, 6.30%			16,620		18,697,500
CIT Group, Inc., Series A, 5.80%			14,850		15,072,750
JPMorgan Chase & Co.:
Series I, 5.74%			15,347		15,418,931
Series V, 5.64%			17,297		17,297,000
Series Z, 5.30%			770		778,663
Series Q, 5.15%			7,221		7,437,630
Series S, 6.75%			11,855		13,159,050
Series X, 6.10%			25,667		27,844,075
Wells Fargo & Co., Series U, 5.87%			34,239		37,738,226
					239,611,307
Capital Markets — 0.1%(j)(k)
Goldman Sachs Group, Inc. (The), Series P, 5.00%			6,608		6,487,074
Morgan Stanley, Series H, 5.91%			6,961		7,018,080
					13,505,154
Entertainment — 0.0%
NBCUniversal Enterprise, Inc., 5.25%(b)(k)			2,827		2,911,810
Total Capital Trusts — 1.5% (Cost: $246,248,207)					256,028,271
		Shares
Preferred Stocks — 0.0%
Banks — 0.0%
CF-B L2 (D), LLC (Acquired 4/08/15-12/15/15, cost $3,532,445)(k)(n)			3,610,706		2,609,457
Total Preferred Stocks — 0.0% (Cost: $3,532,445)					2,609,457

Security	Shares		Value
Trust Preferreds — 0.4%
Banks — 0.4%
GMAC Capital Trust I, Series 2, 7.94%, 02/15/40(j)		2,327,792	$	61,011,428
Total Trust Preferreds — 0.4% (Cost: $53,123,046)				61,011,428
Total Preferred Securities — 1.9% (Cost: $302,903,698)				319,649,156
Total Long-Term Investments — 98.0% (Cost: $16,566,329,291)				16,865,700,598
Short-Term Securities — 2.3%(r)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.87%*		380,229,234		380,229,234
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.77%		8,344,380		8,344,380
SL Liquidity Series, LLC, Money Market Series, 2.13%(s)*		6,690,336		6,691,674
Total Short-Term Securities — 2.3% (Cost: $395,265,177)				395,265,288
Total Options Purchased — 0.0% (Cost: $53,160)				25,656
Total Investments — 100.3% (Cost: $16,961,647,628)				17,260,991,542
Liabilities in Excess of Other Assets — (0.3)%				(49,875,456	)
Net Assets — 100.0%			$	17,211,116,086

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 71

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

^(a) Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

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

^(c) Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

^(e) Non-income producing security.

^(f) Security, or a portion of the security, is on loan.

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

^(h) Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

⁽ⁱ⁾ Payment-in-kind security which may pay interest/dividends in additional par/shares and/or in cash. Rates shown are the current rate and possible payment rates.

^(j) Variable rate security. Rate shown is the rate in effect as of period end.

^(k) Perpetual security with no stated maturity date.

^(l) Issuer filed for bankruptcy and/or is in default.

^(m) Convertible security.

⁽ⁿ⁾ Restricted security as to resale, excluding 144A securities. The Fund held restricted securities with a current value of $30,009,382, representing 0.17% of its net assets as of period end, and an original cost of $29,717,595.

^(o) Zero-coupon bond.

^(p) Represents an unsettled loan commitment at period end. Certain details associated with this purchase are not known prior to the settlement date, including coupon rate.

^(q) Other interests represent beneficial interests in liquidation trusts and other reorganization or private entities.

^(r) Annualized 7-day yield as of period end.

^(s) Security was purchased with the cash collateral from loaned securities.

^* During the year ended September 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Par/Shares Held at 09/30/18		Shares Purchased		Shares Sold			Par/Shares Held at 09/30/19		Value at 09/30/19		Income			Net Realized Gain (Loss) (a)			Change in Unrealized Appreciation (Depreciation)
BlackRock Liquidity Funds, T-Fund, Institutional Class(b)		698,160,915		—		(317,931,681	)		380,229,234	$	380,229,234	$	8,564,624		$	—		$	—
SL Liquidity Series, LLC, Money Market Series(b)		147,372,085		—		(140,681,749	)		6,690,336		6,691,674		382,233	(c)		12,047			(137	)
iShares 0-5 Year High Yield Corporate Bond ETF		—		1,500,000		—			1,500,000		69,735,000		—			—			10,000
iShares Broad USD High Yield Corporate Bond ETF		—		1,687,800		—			1,687,800		69,115,410		—			—			—
iShares iBoxx $ High Yield Corporate Bond ETF		—		18,848,110		(17,064,074	)		1,784,036		155,514,418		4,467,642			(1,528,313	)		763,546
Peninsula Energy Ltd., Warrants (Expires 12/31/18)(d)		3,502,308		—		(3,502,308	)		—		—		—			12			(2,520	)
										$	681,285,736	$	13,414,499		$	(1,516,254	)	$	770,889

^(a) Includes net capital gain distributions, if applicable.

^(b) Represents net shares purchased (sold).

^(c) 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.

^(d) As of period end, the entity is no longer held by the Fund.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

72 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
EURO STOXX 50 Index		30		12/20/19	$	1,162	$	16,681
STOXX 600 Banks Index		50		12/20/19		357		1,199
								17,880
Short Contracts
Euro-Bobl		37		12/06/19		5,471		37,381
Euro-Bund		10		12/06/19		1,899		948
Long Gilt		18		12/27/19		2,971		(20,542)
U.S. Treasury 5 Year Note		7		12/31/19		834		5,350
								23,137
							$	41,017

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	403,301,770	EUR	365,791,000	Bank of America NA		10/03/19	$	4,577,566
USD	52,307,605	EUR	47,672,103	Citibank NA		10/03/19		343,447
USD	11,063,429	EUR	10,115,200	Goldman Sachs International		10/03/19		37,529
								4,958,542
EUR	3,168,000	USD	3,471,332	Citibank NA		10/03/19		(18,108)
USD	7,078,661	AUD	10,492,000	State Street Bank and Trust Co.		10/03/19		(3,184)
USD	12,136,676	GBP	9,938,000	Standard Chartered Bank		10/03/19		(83,102)
USD	30,638,509	GBP	25,415,118	UBS AG		10/03/19		(611,955)
								(716,349)
Net Unrealized Appreciation							$	4,242,193

Exchange-Traded Options Purchased

Description

Number of Contracts

Expiration Date

Exercise Price

Notional Amount (000)

Value

Call

EURO STOXX 50 Index

263

12/20/19

EUR

3,800.00

EUR

9,388

$

25,656

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Counterparty	Termination Date		Notional      Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
UPC Holding BV		5.00	%		Quarterly	Bank of America NA		06/20/24	EUR	790	$	(170,403)	$	(184,406)	$	14,003
UPC Holding BV		5.00	%		Quarterly	BNP Paribas SA		06/20/24	EUR	229		(49,434)		(53,949)		4,515
UPC Holding BV		5.00	%		Quarterly	JPMorgan Chase Bank NA		06/20/24	EUR	1,250		(269,624)		(279,272)		9,648
											$	(489,461)	$	(517,627)	$	28,166

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 73

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund		Payment Frequency	Counterparty	Termination Date	Credit Rating	(a)		Notional Amount (000)	(b)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
Casino Guichard Perrachon SA	1.00	%	Quarterly	Barclays Bank plc	06/20/23	NR		EUR	200		$	(36,060	)	$	(19,695	)	$	(16,365	)
Casino Guichard Perrachon SA	1.00	%	Quarterly	Barclays Bank plc	06/20/23	B		EUR	800			(144,321	)		(79,675	)		(64,646	)
Casino Guichard Perrachon SA	1.00	%	Quarterly	Citibank NA	06/20/23	B		EUR	1,044			(188,311	)		(115,957	)		(72,354	)
Casino Guichard Perrachon SA	1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/23	B		EUR	10			(1,803	)		(762	)		(1,041	)
CenturyLink, Inc.	1.00	%	Quarterly	Barclays Bank plc	06/20/23	NR		USD	20,000			(341,286	)		(1,685,703	)		1,344,417
Casino Guichard Perrachon SA	1.00	%	Quarterly	Goldman Sachs International	12/20/23	NR		EUR	210			(43,351	)		(28,221	)		(15,130	)
CenturyLink, Inc.	1.00	%	Quarterly	Barclays Bank plc	12/20/23	NR		USD	5,176			(162,837	)		(335,418	)		172,581
Chesapeake Energy Corp.	5.00	%	Quarterly	Barclays Bank plc	12/20/23	B+		USD	7,878			(1,776,046	)		62,399			(1,838,445	)
Chesapeake Energy Corp.	5.00	%	Quarterly	Barclays Bank plc	12/20/23	B+		USD	3,825			(862,322	)		6,181			(868,503	)
Casino Guichard Perrachon SA	5.00	%	Quarterly	Credit Suisse International	06/20/24	B		EUR	432			(25,913	)		(35,222	)		9,309
Casino Guichard Perrachon SA	5.00	%	Quarterly	Credit Suisse International	06/20/24	B		EUR	488			(29,314	)		(34,531	)		5,217
Garfunkelux Holdco 2 SA	5.00	%	Quarterly	Credit Suisse International	06/20/24	B-		EUR	1,100			14,913			(95,884	)		110,797
Telecom Italia SpA	1.00	%	Quarterly	Goldman Sachs International	06/20/24	BB+		EUR	260			(6,655	)		(22,578	)		15,923
Garfunkelux Holdco 2 SA	5.00	%	Quarterly	Credit Suisse International	12/20/24	B-		EUR	460			3,935			(6,446	)		10,381
CenturyLink, Inc.	1.00	%	Quarterly	Barclays Bank plc	06/20/25	NR		USD	3,720			(341,898	)		(565,066	)		223,168
Tesco plc	1.00	%	Quarterly	Barclays Bank plc	12/20/25	BB+		EUR	1,500			(40,617	)		(39,732	)		(885	)
Telecom Italia SpA	1.00	%	Quarterly	Citibank NA	06/20/26	BB+		EUR	459			(37,856	)		(65,804	)		27,948
Virgin Media Finance plc	5.00	%	Quarterly	Credit Suisse International	12/20/26	B		EUR	930			219,264			235,210			(15,946	)
Tesco plc	1.00	%	Quarterly	Morgan Stanley & Co. International plc	12/20/28	BB+		EUR	2,930			(225,891	)		(274,661	)		48,770
											$	(4,026,369	)	$	(3,101,565	)	$	(924,804	)

^(a)  Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b)  The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

OTC Total Return Swaps

Paid by the Fund		Received by the Fund
Rate (Amount)/ Reference	Frequency	Rate/ Reference	Frequency	Counterparty	Termination Date			Notional Amount (000)	Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
1 month LIBOR plus 0.30%	At Termination	iShares iBoxx $ High Yield Corporate Bond ETF	At Termination	Goldman Sachs International		10/01/19	USD	2,092	$	(863,923	)	$	—		$	(863,923	)
1 month LIBOR plus 0.30%	At Termination	SPDR Lehman High Yield Bond ETF	At Termination	Goldman Sachs International		10/01/19	USD	1,392		(735,864	)		—			(735,864	)
3 month LIBOR	Quarterly	iBoxx USD Liquid High Yield Total Return Index	At Termination	Goldman Sachs International		12/20/19	USD	67,858		(410,274	)		(363,848	)		(46,426	)
3 month LIBOR	Quarterly	iBoxx USD Liquid High Yield Total Return Index	At Termination	JPMorgan Chase Bank     NA		12/20/19	USD	75,000		(478,528	)		(402,143	)		(76,385	)
3 month LIBOR	At Termination	iBoxx USD Liquid High Yield Total Return Index	At Termination	Morgan Stanley & Co. International plc		12/20/19	USD	160,000		(860,419	)		(887,151	)		26,732

74 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

OTC Total Return Swaps (continued)

Paid by the Fund		Received by the Fund
Rate (Amount)/ Reference	Frequency	Rate/Reference	Frequency	Counterparty	Termination Date		Notional Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
3 month LIBOR	Quarterly	iBoxx USD Liquid High Yield Total Return Index	At Termination	Goldman Sachs International		03/20/20	USD	67,858	$	(353,494)	$	(388,863)	$	35,369
									$	(3,702,502)	$	(2,042,005)	$	(1,660,497)

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
1 month LIBOR	London Interbank Offered Rate	2.02%
3 month LIBOR	London Interbank Offered Rate	2.09%

Balances Reported in the Statements of Assets and Liabilities for OTC Swaps

	Swap Premiums Paid		Swap Premiums Received		Unrealized Appreciation		Unrealized Depreciation
OTC Swaps	$	303,790	$	(5,964,987)	$	2,058,778	$	(4,615,913)

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	17,880	$	—	$	43,679	$	—	$	61,559
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		4,958,542		—		—		4,958,542
Options purchased
Investments at value — unaffiliated(b)		—		—		25,656		—		—		—		25,656
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		2,300,467		—		—		62,101		—		2,362,568
	$	—	$	2,300,467	$	43,536	$	4,958,542	$	105,780	$	—	$	7,408,325
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		20,542		—		20,542
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		716,349		—		—		716,349
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		6,816,297		1,599,787		—		2,164,816		—		10,580,900
	$	—	$	6,816,297	$	1,599,787	$	716,349	$	2,185,358	$	—	$	11,317,791

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts, if any, are reported in the Consolidated Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

^(b)  Includes options purchased at value as reported in the Consolidated Schedule of Investments.

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 75

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

For the year ended September 30, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—	$	(10,506,354)	$	—	$	1,618,340	$	—	$	(8,888,014)
Forward foreign currency exchange contracts		—		—		—		56,570,364		—		—		56,570,364
Options purchased(a)		—		522,200		(15,536,915)		—		—		—		(15,014,715)
Options written		—		2,781,000		7,687,050		—		—		—		10,468,050
Swaps		—		(25,625,257)		16,643,586		—		19,537,585		—		10,555,914
	$	—	$	(22,322,057)	$	(1,712,633)	$	56,570,364	$	21,155,925	$	—	$	53,691,599
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		(439,406)		—		(265,285)		—		(704,691)
Forward foreign currency exchange contracts		—		—		—		1,138,865		—		—		1,138,865
Options purchased(b)		—		—		167,853		—		—		—		167,853
Swaps		—		(4,810,663)		(3,981,063)		—		(2,826,324)		—		(11,618,050)
	$	—	$	(4,810,663)	$	(4,252,616)	$	1,138,865	$	(3,091,609)	$	—	$	(11,016,023)

^(a)  Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)  Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	264,483,607
Average notional value of contracts — short		47,250,920
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		866,681,632
Average amounts sold — in USD		255,973,342
Options:
Average value of option contracts purchased		9,806
Average value of option contracts written		—(a)
Average notional value of swaption contracts purchased		—(a)
Average notional value of swaption contracts written		107,500,000
Credit default swaps:
Average notional value — buy protection		1,038,789
Average notional value — sell protection		97,204,588
Total return swaps:
Average notional value		337,000,948

^(a)  Derivative not held at any quarter-end. The risk exposure table serves as an indicator of activity during the period.

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	10,411	$	5,939
Forward foreign currency exchange contracts		4,958,542		716,349
Options(a)		25,656		—
Swaps — OTC(b)		2,362,568		10,580,900
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	7,357,177	$	11,303,188
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(36,067)		(5,939)
Total derivative assets and liabilities subject to an MNA	$	7,321,110	$	11,297,249

^(a)  Includes options purchased at value which is included in Investments at value — unaffiliated in the Statements of Assets and Liabilities and reported in the Consolidated Schedule of Investments.

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

76 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

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

Counterparty	Derivative Assets Subject to an MNA by             Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (b)(c)
Bank of America NA	$	4,591,569	$	(184,406)	$	—	$	—	$	4,407,163
Barclays Bank plc		1,808,746		(1,808,746)		—		—		—
BNP Paribas SA		4,515		(4,515)		—		—		—
Citibank NA		371,395		(272,223)		—		—		99,172
Credit Suisse International		370,914		(188,029)		—		—		182,885
Goldman Sachs International		88,821		(88,821)		—		—		—
JPMorgan Chase Bank NA		9,648		(9,648)		—		—		—
Morgan Stanley & Co. International plc		75,502		(75,502)		—		—		—
	$	7,321,110	$	(2,631,890)	$	—	$	—	$	4,689,220
Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Pledged		Cash Collateral Pledged (d)		Net Amount of Derivative Liabilities (c)(e)
Bank of America NA	$	184,406	$	(184,406)	$	—	$	—	$	—
Barclays Bank plc		5,514,133		(1,808,746)		—		(3,090,000)		615,387
BNP Paribas SA		53,949		(4,515)		—		—		49,434
Citibank NA		272,223		(272,223)		—		—		—
Credit Suisse International		188,029		(188,029)		—		—		—
Goldman Sachs International		2,464,853		(88,821)		—		(1,700,000)		676,032
JPMorgan Chase Bank NA		759,603		(9,648)		—		(400,000)		349,955
Morgan Stanley & Co. International plc		1,161,812		(75,502)		—		(420,000)		666,310
Standard Chartered Bank		83,102		—		—		—		83,102
State Street Bank and Trust Co.		3,184		—		—		—		3,184
UBS AG		611,955		—		—		—		611,955
	$	11,297,249	$	(2,631,890)	$	—	$	(5,610,000)	$	3,055,359

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

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(d)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(e)  Net amount represents the net amount payable due to the counterparty in the event of default.

Fair Value Hierarchy as of Period End

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

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

	Level 1		Level 2		Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—	$	172,916,246	$	1,079,050	$	173,995,296
Common Stocks:
Auto Components		—		—		28,679,856		28,679,856
Chemicals		47,558,363		—		—		47,558,363
Commercial Services & Supplies		—		—		3		3
Containers & Packaging		11,552,904		—		—		11,552,904
Diversified Financial Services		—		1,340		171		1,511
Diversified Telecommunication Services		—		1,526,233		—		1,526,233
Equity Real Estate Investment Trusts (REITs)		17,753,379		—		—		17,753,379
Hotels, Restaurants & Leisure		19,404,422		—		—		19,404,422
Media		11,954,938		570,082		—		12,525,020

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 77

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

	Level 1		Level 2		Level 3		Total
Metals & Mining	$	32,061,915	$	—	$	—	$	32,061,915
Oil, Gas & Consumable Fuels		—		—		5,613,091		5,613,091
Semiconductors & Semiconductor Equipment		15,018		—		—		15,018
Corporate Bonds:
Aerospace & Defense		—		690,683,365		—		690,683,365
Air Freight & Logistics		—		4,068,750		—		4,068,750
Auto Components		—		253,707,689		—		253,707,689
Automobiles		—		10,516,274		—		10,516,274
Banks		—		236,524,563		—		236,524,563
Building Products		—		109,672,269		—		109,672,269
Capital Markets		—		72,217,216		—		72,217,216
Chemicals		—		378,140,700		—		378,140,700
Commercial Services & Supplies		—		302,055,717		—		302,055,717
Communications Equipment		—		126,966,456		—		126,966,456
Construction & Engineering		—		29,001,179		—		29,001,179
Construction Materials		—		3,133,406		—		3,133,406
Consumer Finance		—		324,273,888		—		324,273,888
Containers & Packaging		—		417,582,251		—		417,582,251
Distributors		—		95,319,432		—		95,319,432
Diversified Consumer Services		—		103,899,685		—		103,899,685
Diversified Financial Services		—		261,328,033		—		261,328,033
Diversified Telecommunication Services		—		1,018,597,787		—		1,018,597,787
Electric Utilities		—		90,333,861		—		90,333,861
Electrical Equipment		—		37,668,341		27,399,925		65,068,266
Electronic Equipment, Instruments & Components		—		51,198,520		—		51,198,520
Energy Equipment & Services		—		226,986,692		—		226,986,692
Entertainment		—		114,421,583		—		114,421,583
Equity Real Estate Investment Trusts (REITs)		—		409,307,727		—		409,307,727
Food & Staples Retailing		—		43,997,849		—		43,997,849
Food Products		—		259,487,150		—		259,487,150
Gas Utilities		—		17,878,369		—		17,878,369
Health Care Equipment & Supplies		—		162,844,620		—		162,844,620
Health Care Providers & Services		—		856,270,238		—		856,270,238
Health Care Technology		—		55,480,670		—		55,480,670
Hotels, Restaurants & Leisure		—		749,150,114		—		749,150,114
Household Durables		—		147,222,724		—		147,222,724
Household Products		—		24,741,886		—		24,741,886
Independent Power and Renewable Electricity Producers		—		265,170,402		—		265,170,402
Insurance		—		207,319,890		—		207,319,890
Interactive Media & Services		—		8,346,253		—		8,346,253
Internet & Direct Marketing Retail		—		13,157,760		—		13,157,760
IT Services		—		265,769,903		—		265,769,903
Leisure Products		—		42,700,695		—		42,700,695
Life Sciences Tools & Services		—		180,941,897		—		180,941,897
Machinery		—		219,698,386		—		219,698,386
Marine		—		425,081		—		425,081
Media		—		1,154,162,119		—		1,154,162,119
Metals & Mining		—		421,971,665		—		421,971,665
Mortgage Real Estate Investment Trusts (REITs)		—		5,542,460		—		5,542,460
Multiline Retail		—		959,713		—		959,713
Multi-Utilities		—		3,943,177		—		3,943,177
Oil, Gas & Consumable Fuels		—		1,231,859,258		—		1,231,859,258
Paper & Forest Products		—		9,861,188		—		9,861,188
Personal Products		—		11,076,052		—		11,076,052
Pharmaceuticals		—		420,117,662		—		420,117,662
Professional Services		—		164,721,074		—		164,721,074
Real Estate Management & Development		—		56,318,007		—		56,318,007
Road & Rail		—		107,769,386		—		107,769,386
Semiconductors & Semiconductor Equipment		—		46,014,009		—		46,014,009
Software		—		694,503,002		—		694,503,002
Specialty Retail		—		228,590,045		—		228,590,045
Technology Hardware, Storage & Peripherals		—		105,559,900		—		105,559,900
Textiles, Apparel & Luxury Goods		—		13,769,179		—		13,769,179
Thrifts & Mortgage Finance		—		44,936,519		—		44,936,519
Trading Companies & Distributors		—		209,444,738		—		209,444,738
Transportation Infrastructure		—		1,899,753		—		1,899,753

78 2 0 1 9   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

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

	Level 1		Level 2		Level 3		Total
Wireless Telecommunication Services	$	—	$	345,588,258	$	—	$	345,588,258
Floating Rate Loan Interests:
Aerospace & Defense		—		10,223,556		2,627,588		12,851,144
Airlines		—		15,128,372		—		15,128,372
Auto Components		—		21,540,175		—		21,540,175
Building Products		—		3,398,934		—		3,398,934
Capital Markets		—		25,159,807		—		25,159,807
Chemicals		—		57,605,946		2,375,411		59,981,357
Commercial Services & Supplies		—		118,434,054		—		118,434,054
Construction & Engineering		—		17,532,754		—		17,532,754
Construction Materials		—		3,467,205		—		3,467,205
Containers & Packaging		—		12,590,309		—		12,590,309
Diversified Consumer Services		—		6,343,530		—		6,343,530
Diversified Financial Services		—		39,077,251		—		39,077,251
Diversified Telecommunication Services		—		43,700,583		—		43,700,583
Energy Equipment & Services		—		38,201,798		39,186,043		77,387,841
Entertainment		—		3,126,876		—		3,126,876
Food & Staples Retailing		—		7,214,511		—		7,214,511
Food Products		—		6,830,353		—		6,830,353
Health Care Equipment & Supplies		—		43,831,092		—		43,831,092
Health Care Providers & Services		—		87,865,711		—		87,865,711
Health Care Technology		—		41,889,202		—		41,889,202
Hotels, Restaurants & Leisure		—		33,405,255		—		33,405,255
Independent Power and Renewable Electricity Producers		—		4,112,257		—		4,112,257
Industrial Conglomerates		—		44,400,080		—		44,400,080
Insurance		—		63,570,137		—		63,570,137
IT Services		—		97,724,355		4,636,871		102,361,226
Life Sciences Tools & Services		—		42,427,572		—		42,427,572
Machinery		—		38,633,435		11,082,225		49,715,660
Media		—		156,766,846		8,957,962		165,724,808
Multiline Retail		—		10,969,232		—		10,969,232
Oil, Gas & Consumable Fuels		—		36,192,668		—		36,192,668
Pharmaceuticals		—		23,641,045		—		23,641,045
Professional Services		—		13,740,457		—		13,740,457
Road & Rail		—		24,615,653		—		24,615,653
Semiconductors & Semiconductor Equipment		—		5,757,129		—		5,757,129
Software		—		153,702,633		—		153,702,633
Wireless Telecommunication Services		—		32,472,427		—		32,472,427
Foreign Agency Obligations(a)		—		3,131,216		—		3,131,216
Investment Companies		537,312,202		—		—		537,312,202
Non-Agency Mortgage-Backed Securities		—		6,215,573		—		6,215,573
Other Interests		—		329,777		3		329,780
Preferred Securities:
Banks		61,011,428		239,611,307		—		300,622,735
Capital Markets		—		13,505,154		—		13,505,154
Entertainment		—		2,911,810		—		2,911,810
Short-Term Securities		388,573,614		—		—		388,573,614
Options Purchased:
Equity contracts		25,656		—		—		25,656
Subtotal	$	1,127,223,839	$	15,992,828,373	$	131,638,199	$	17,251,690,411
Investments valued at NAV(b)								9,301,131
Total Investments							$	17,260,991,542
Derivative Financial Instruments(c)
Assets:
Credit contracts	$	—	$	1,996,677	$	—	$	1,996,677
Equity contracts		17,880		—		—		17,880
Foreign currency exchange contracts		—		4,958,542		—		4,958,542
Interest rate contracts		43,679		62,101		—		105,780
Liabilities:
Credit contracts		—		(2,893,315)		—		(2,893,315)
Equity contracts		—		(1,599,787)		—		(1,599,787)
Foreign currency exchange contracts		—		(716,349)		—		(716,349)

C O N S O L I D A T E D   S C H E D U L E S   O F   I N V E S T M E N T S 79

Consolidated Schedule of Investments  (continued) September 30, 2019 BlackRock High Yield Bond Portfolio

	Level 1			Level 2			Level 3		Total
Interest rate contracts	$	(20,542	)	$	(122,811	)	$	—	$	(143,353	)
	$	41,017		$	1,685,058		$	—	$	1,726,075

^(a)  See above Consolidated Schedule of Investments for values in each country.

^(b)  Certain investments of the Fund were fair valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

^(c)  Derivative financial instruments are swaps, futures contracts and forward foreign currency exchange contracts. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

80 2 0 1 9   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   September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities — 21.9%
Allegro CLO II-S Ltd., Series 2014-1RA, Class A1, (LIBOR USD 3 Month +1.08%), 3.36%, 10/21/28(a)(b)	USD		5,600	$	5,588,544
Ally Auto Receivables Trust, Series 2018-3, Class A2, 2.72%, 05/17/21			5,899		5,903,168
ALM XII Ltd., Series 2015-12A, Class A1R2, (LIBOR USD 3 Month +0.89%), 3.21%, 04/16/27(a)(b)			6,809		6,808,231
ALM XVII Ltd., Series 2015-17A, Class A1AR, (LIBOR USD 3 Month +0.93%), 3.23%, 01/15/28(a)(b)			3,680		3,671,482
AmeriCredit Automobile Receivables Trust:
Series 2017-1, Class A3, 1.87%, 08/18/21			975		974,677
Series 2017-4, Class A3, 2.04%, 07/18/22			13,412		13,404,223
Series 2018-1, Class A3, 3.07%, 12/19/22			12,640		12,732,881
Series 2018-2, Class A3, 3.15%, 03/20/23			9,940		10,055,325
Series 2019-1, Class A3, 2.97%, 11/20/23			11,160		11,322,839
Series 2019-3, Class A3, 2.06%, 04/18/24			26,850		26,870,707
AMMC CLO XIII Ltd., Series 2013-13A, Class A1LR, (LIBOR USD 3 Month +1.26%), 3.54%, 07/24/29(a)(b)			4,000		4,012,705
Anchorage Capital CLO 7 Ltd., Series 2015-7A, Class AR, (LIBOR USD 3 Month +0.96%), 3.26%, 10/15/27(a)(b)			14,523		14,498,321
Ares XXIX CLO Ltd., Series 2014-1A, Class A1R, (LIBOR USD 3 Month +1.19%), 3.49%, 04/17/26(a)(b)			8,637		8,647,825
Atlas Senior Loan Fund III Ltd., Series 2013-1A, Class AR, (LIBOR USD 3 Month +0.83%), 2.95%, 11/17/27(a)(b)			5,400		5,393,875
Atrium XII, Series 12A, Class AR, (LIBOR USD 3 Month +0.83%), 3.11%, 04/22/27(a)(b)			19,400		19,403,440
Avery Point IV CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month +1.10%), 3.38%, 04/25/26(a)(b)			2,170		2,171,795
Avery Point V CLO Ltd., Series 2014-5A, Class AR, (LIBOR USD 3 Month +0.98%), 3.28%, 07/17/26(a)(b)			1,986		1,986,777
Ballyrock CLO Ltd., Series 2016-1A, Class CR, (LIBOR USD 3 Month +2.40%), 4.70%, 10/15/28(a)(b)			3,000		2,998,476
Benefit Street Partners CLO II Ltd., Series 2013-IIA, Class A2R, (LIBOR USD 3 Month +1.75%), 4.05%, 07/15/29(a)(b)			8,355		8,327,343
Benefit Street Partners CLO VII Ltd., Series 2015-VIIA, Class A1AR, (LIBOR USD 3 Month +0.78%), 3.08%, 07/18/27(a)(b)			9,500		9,501,038
BlueMountain CLO Ltd., Series 2012-2A, Class AR2, (LIBOR USD 3 Month +1.05%), 3.19%, 11/20/28(a)(b)			13,440		13,446,646
BMW Floorplan Master Owner Trust, Series 2018-1, Class A1, 3.15%, 05/15/23(b)			16,230		16,517,200
BSPRT Issuer Ltd., Series 2018-FL3, Class A, (LIBOR USD 1 Month +1.05%), 3.08%, 03/15/28(a)(b)			17,970		17,969,975
Carmax Auto Owner Trust, Series 2019-3, Class A3, 2.18%, 08/15/24			24,830		24,966,818
Catamaran CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month +0.90%), 3.18%, 04/22/27(a)(b)			5,278		5,262,988
Cedar Funding VI CLO Ltd., Series 2016-6A, Class AR, (LIBOR USD 3 Month +1.09%), 3.37%, 10/20/28(a)(b)			26,890		26,855,414
Chesapeake Funding II LLC(b): Series 2018-1A, Class A1, 3.04%, 04/15/30			13,184		13,327,477

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2019-1A, Class B, 3.11%, 04/15/31	USD		5,230	$	5,360,859
Series 2019-1A, Class C, 3.36%, 04/15/31			4,930		5,057,921
Series 2019-1A, Class D, 3.80%, 04/15/31			6,630		6,799,607
CIFC Funding Ltd.(a)(b):
Series 2014-4RA, Class A1A, (LIBOR USD 3 Month +1.13%), 3.43%, 10/17/30			29,185		29,156,299
Series 2015-2A, Class AR, (LIBOR USD 3 Month +0.78%), 3.08%, 04/15/27			27,099		27,028,186
Credit Acceptance Auto Loan Trust(b):
Series 2017-1A, Class A, 2.56%, 10/15/25			5,169		5,171,151
Series 2018-1A, Class A, 3.01%, 02/16/27			24,197		24,342,132
Series 2018-2A, Class A, 3.47%, 05/17/27			35,490		36,004,648
Series 2019-1A, Class A, 3.33%, 02/15/28			25,440		25,992,221
Drive Auto Receivables Trust:
Series 2018-4, Class A3, 3.04%, 11/15/21			827		827,736
Series 2019-2, Class A3, 3.04%, 03/15/23			17,640		17,793,070
Series 2019-4, Class A3, 2.16%, 05/15/23			7,930		7,924,395
Dryden XXV Senior Loan Fund, Series 2012- 25A, Class ARR, (LIBOR USD 3 Month + 0.90%), 3.20%, 10/15/27(a)(b)			30,600		30,600,884
Dryden XXVI Senior Loan Fund, Series 2013- 26A, Class AR, (LIBOR USD 3 Month + 0.90%), 3.20%, 04/15/29(a)(b)			13,800		13,781,418
EDvestinU Private Education Loan Issue No. 1 LLC, Series 2019-A, Class A, 3.58%, 11/25/38(b)(c)			10,817		11,023,429
Enterprise Fleet Financing LLC(b):
Series 2016-2, Class A3, 2.04%, 02/22/22			12,262		12,253,065
Series 2017-1, Class A2, 2.13%, 07/20/22			1,270		1,269,681
Series 2017-1, Class A3, 2.60%, 07/20/22			4,260		4,274,480
Series 2018-1, Class A2, 2.87%, 10/20/23			16,417		16,490,409
Series 2019-1, Class A2, 2.98%, 10/22/24			21,680		21,923,202
Series 2019-2, Class A3, 2.38%, 02/20/25			14,800		14,923,980
FCI Funding LLC, Series 2019-1A, Class A, 3.63%, 02/18/31(b)			11,558		11,641,897
Ford Credit Auto Lease Trust, Series 2019-A, Class A2A, 2.84%, 09/15/21			70,100		70,351,463
Ford Credit Floorplan Master Owner Trust:
Series 2017-2, Class A1, 2.16%, 09/15/22			15,670		15,674,737
Series 2019-2, Class A, 3.06%, 04/15/26			32,120		33,311,578
Ford Credit Floorplan Master Owner Trust A, Series 2019-4, Class A, 2.44%, 09/15/26			41,920		42,144,700
GMF Floorplan Owner Revolving Trust, Series 2019-1, Class A, 2.70%, 04/15/24(b)			18,745		19,023,674
Halcyon Loan Advisors Funding Ltd., Series 2015-2A, Class AR, (LIBOR USD 3 Month + 1.08%), 3.36%, 07/25/27(a)(b)			20,265		20,242,759
Hyundai Auto Lease Securitization Trust, Series 2019-A, Class A2, 2.92%, 07/15/21(b)			21,183		21,295,868
KKR CLO Ltd., Series 16, Class A2R, (LIBOR USD 3 Month +1.80%), 4.08%, 01/20/29(a)(b)			10,610		10,607,134
Lendmark Funding Trust, Series 2018-1A, Class A, 3.81%, 12/21/26(b)			18,440		18,830,926
Litigation Fee Residual Funding LLC, Series 2015-1, 4.00%, 10/30/27(d)			7,616		7,587,900
LoanCore Issuer Ltd., Series 2018-CRE1, Class A, (LIBOR USD 1 Month +1.13%), 3.16%, 05/15/28(a)(b)			12,180		12,189,108
Madison Park Funding XII Ltd., Series 2014- 12A, Class AR, (LIBOR USD 3 Month + 1.26%), 3.54%, 07/20/26(a)(b)			2,959		2,959,705
Madison Park Funding XIX Ltd., Series 2015- 19A, Class A2R, (LIBOR USD 3 Month + 1.75%), 4.03%, 01/22/28(a)(b)			16,700		16,682,278

S C H E D U L E S   O F   I N V E S T M E N T S 81

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Marathon CRE Ltd., Series 2018-FL1, Class A, (LIBOR USD 1 Month +1.15%), 3.18%, 06/15/28(a)(b)	USD		5,690	$	5,691,156
Mariner Finance Issuance Trust, Series 2019- AA, Class A, 2.96%, 07/20/32(b)			6,804		6,886,618
Mercedes-Benz Master Owner Trust, Series 2019-BA, Class A, 2.61%, 05/15/24(b)			28,750		29,195,915
Mill City Mortgage Loan Trust, Series 2016-1, Class A1, (LIBOR USD 1 Month +0.00%), 2.50%, 04/25/57(a)(b)			12,747		12,766,508
Mill City Solar Loan Ltd., Series 2019-2GS, Class A, 3.69%, 07/20/43(b)			11,682		11,832,819
Navient Private Education Loan Trust, Series 2014-CTA, Class A, (LIBOR USD 1 Month + 0.70%), 2.73%, 09/16/24(a)(b)			242		241,993
Navient Private Education Refi Loan Trust(b):
Series 2019-A, Class A1, 3.03%, 01/15/43			8,013		8,077,128
Series 2019-CA, Class A2, 3.13%, 02/15/68			8,545		8,776,393
Series 2019-EA, Class A2B, (LIBOR USD 1 Month +0.92%), 2.95%, 05/15/68(a)			16,440		16,430,039
Navient Student Loan Trust(b):
Series 2018-EA, Class A2, 4.00%, 12/15/59			2,872		3,041,521
Series 2019-BA, Class A2A, 3.39%, 12/15/59			7,880		8,218,195
Nissan Auto Receivables Owner Trust, Series 2019-A, Class A4, 3.00%, 09/15/25			6,590		6,808,336
Nissan Master Owner Trust Receivables(a):
Series 2017-C, Class A, (LIBOR USD 1 Month +0.32%), 2.35%, 10/17/22			12,800		12,803,799
Series 2019-A, Class A, (LIBOR USD 1 Month +0.56%), 2.59%, 02/15/24			26,180		26,279,510
NLY Commercial Mortgage Trust, Series 2019-FL2, Class A, (LIBOR USD 1 Month + 1.30%), 3.33%, 02/15/36(a)(b)			5,121		5,127,157
OCP CLO Ltd., Series 2015-8A, Class A1R, (LIBOR USD 3 Month +0.85%), 3.15%, 04/17/27(a)(b)			2,292		2,292,260
Octagon Investment Partners 30 Ltd., Series 2017-1A, Class B, (LIBOR USD 3 Month + 2.35%), 4.63%, 03/17/30(a)(b)			4,200		4,162,043
OFSI Fund VI Ltd., Series 2014-6A, Class BR, (LIBOR USD 3 Month +1.50%), 3.80%, 03/20/25(a)(b)			6,345		6,252,618
OneMain Direct Auto Receivables Trust, Series 2018-1A, Class A, 3.43%, 12/16/24(b)			22,405		22,780,114
Onemain Financial Issuance Trust, Series 2018-1A, Class A, 3.30%, 03/14/29(b)			4,835		4,920,197
OneMain Financial Issuance Trust, Series 2019-2A, Class A, 3.14%, 10/14/36(b)			7,730		7,800,753
OZLM VIII Ltd., Series 2014-8A, Class A1RR, (LIBOR USD 3 Month +1.17%), 3.47%, 10/17/29(a)(b)			24,210		24,155,627
Palmer Square CLO Ltd., Series 2014-1A, Class A1R2, (LIBOR USD 3 Month + 1.13%), 3.43%, 01/17/31(a)(b)			15,000		14,967,518
Palmer Square Credit Funding Ltd., Series 2019-1A, Class B, (LIBOR USD 3 Month + 2.25%), 4.53%, 04/20/27(a)(b)			3,450		3,448,259
Palmer Square Loan Funding Ltd.(a)(b):
Series 2017-1A, Class A1, (LIBOR USD 3 Month +0.74%), 3.04%, 10/15/25			7,060		7,060,846
Series 2018-5A, Class A1, (LIBOR USD 3 Month +0.85%), 3.13%, 01/20/27			31,374		31,260,190

Security		Par (000)		Value
Asset-Backed Securities (continued)
Parallel Ltd.(a)(b):
Series 2015-1A, Class AR, (LIBOR USD 3 Month +0.85%), 3.13%, 07/20/27	USD		13,000	$	12,986,576
Series 2017-1A, Class C, (LIBOR USD 3 Month +2.45%), 4.73%, 07/20/29			1,200		1,188,415
PFS Financing Corp.(b):
Series 2016-BA, Class A, 1.87%, 10/15/21			5,130		5,130,534
Series 2018-B, Class A, 2.89%, 02/15/23			9,430		9,522,631
Series 2019-A, Class A1, (LIBOR USD 1 Month +0.55%), 2.58%, 04/15/24(a)			8,480		8,487,562
Series 2019-A, Class A2, 2.86%, 04/15/24			10,780		10,977,673
Recette CLO Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month +0.92%), 3.20%, 10/20/27(a)(b)			10,000		10,001,637
Regatta VI Funding Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month +1.08%), 3.36%, 07/20/28(a)(b)			19,235		19,202,631
Regatta VII Funding Ltd., Series 2016-1A, Class AR, (LIBOR USD 3 Month +1.06%), 3.22%, 12/20/28(a)(b)			23,500		23,416,241
Santander Drive Auto Receivables Trust:
Series 2018-2, Class A3, 2.75%, 09/15/21			3,662		3,662,301
Series 2019-1, Class A2A, 2.91%, 01/18/22			14,951		14,971,752
Santander Retail Auto Lease Trust, Series 2019-B, Class A2A, 2.29%, 04/20/22(b)			23,850		23,913,310
Sesac Finance LLC, Series 2019-1, Class A2, 5.22%, 07/25/49(b)			3,060		3,157,430
Silver Creek CLO Ltd., Series 2014-1A, Class AR, (LIBOR USD 3 Month +1.24%), 3.52%, 07/20/30(a)(b)			5,000		5,000,753
SLM Private Credit Student Loan Trust(a):
Series 2004-A, Class A3, (LIBOR USD 3 Month +0.40%), 2.52%, 06/15/33			1,669		1,646,683
Series 2004-B, Class A3, (LIBOR USD 3 Month +0.33%), 2.45%, 03/15/24			2,810		2,793,839
Series 2007-A, Class A4A, (LIBOR USD 3 Month +0.24%), 2.36%, 12/16/41			7,300		7,113,201
SLM Private Education Loan Trust(b):
Series 2011-A, Class A3, (LIBOR USD 1 Month +2.50%), 4.53%, 01/15/43(a)			2,784		2,795,142
Series 2011-C, Class A2B, 4.54%, 10/17/44			835		838,393
Series 2013-B, Class A2A, 1.85%, 06/17/30			64		64,260
SLM Student Loan Trust, Series 2013-4, Class A, (LIBOR USD 1 Month +0.55%), 2.57%, 06/25/43(a)			5,876		5,814,963
SMB Private Education Loan Trust(b):
Series 2015-A, Class A2A, 2.49%, 06/15/27			7,154		7,176,247
Series 2016-A, Class A2A, 2.70%, 05/15/31			5,466		5,512,270
Series 2016-B, Class A2A, 2.43%, 02/17/32			4,583		4,598,873
Series 2018-A, Class A2A, 3.50%, 02/15/36			21,515		22,568,518
Series 2018-B, Class A2B, (LIBOR USD 1 Month +0.72%), 2.75%, 01/15/37(a)			11,460		11,403,986
Series 2019-A, Class A2A, 3.44%, 07/15/36			6,210		6,474,438
SoFi Professional Loan Program LLC(b):
Series 2015-A, Class A1, (LIBOR USD 1 Month +1.20%), 3.22%, 03/25/33(a)			2,375		2,384,348
Series 2015-D, Class A2, 2.72%, 10/27/36			6,341		6,394,297
Series 2016-A, Class A2, 2.76%, 12/26/36			2,981		2,999,296
Series 2016-C, Class A2B, 2.36%, 12/27/32			2,731		2,740,264
Series 2016-D, Class A2B, 2.34%, 04/25/33			2,669		2,676,065
Series 2016-E, Class A2B, 2.49%, 01/25/36			1,797		1,804,366
Series 2017-C, Class A2A, 1.75%, 07/25/40			1,093		1,091,482
Series 2018-A, Class A2B, 2.95%, 02/25/42			7,770		7,919,046
Series 2019-A, Class A2FX, 3.69%, 06/15/48			6,180		6,548,760

82 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Asset-Backed Securities (continued)
Series 2019-B, Class A2FX, 3.09%, 08/17/48	USD		4,080	$	4,227,227
SoFi Professional Loan Program Trust(b):
Series 2018-C, Class A2FX, 3.59%, 01/25/48			4,663		4,857,176
Series 2018-D, Class A1FX, 3.12%, 02/25/48			5,580		5,624,729
Sound Point CLO XV Ltd., Series 2017-1A, Class C, (LIBOR USD 3 Month +2.50%), 4.76%, 01/23/29(a)(b)			1,500		1,490,158
Soundview Home Loan Trust, Series 2003-2, Class A2, (LIBOR USD 1 Month +1.30%), 3.32%, 11/25/33(a)			364		369,624
SpringCastle Funding Asset-Backed Notes, Series 2019-AA, Class A, 3.20%, 05/27/36(b)			29,933		30,253,238
Springleaf Funding Trust(b):
Series 2015-BA, Class A, 3.48%, 05/15/28			5,363		5,422,658
Series 2017-AA, Class A, 2.68%, 07/15/30			8,215		8,234,182
TICP CLO I Ltd., Series 2015-1A, Class AR, (LIBOR USD 3 Month +0.80%), 3.08%, 07/20/27(a)(b)			8,135		8,106,176
Towd Point Mortgage Trust(b)(c):
Series 2016-3, Class A1, 2.25%, 04/25/56			8,084		8,051,529
Series 2016-4, Class A1, 2.25%, 07/25/56			11,150		11,083,759
Treman Park CLO Ltd., Series 2015-1A, Class ARR, (LIBOR USD 3 Month +1.07%), 3.35%, 10/20/28(a)(b)			50,000		50,078,355
Tryon Park CLO Ltd., Series 2013-1A, Class A1SR, (LIBOR USD 3 Month +0.89%), 3.19%, 04/15/29(a)(b)			5,070		5,069,668
Voya CLO Ltd., Series 2014-3A, Class A1R, (LIBOR USD 3 Month +0.72%), 3.00%, 07/25/26(a)(b)			7,225		7,211,943
Wheels SPV 2 LLC, Series 2017-1A, Class A2, 1.88%, 04/20/26(b)			790		788,946
Total Asset-Backed Securities — 21.9% (Cost: $1,609,896,618)					1,620,287,753
Corporate Bonds — 33.8%
Aerospace & Defense — 0.9%
Boeing Co. (The), 2.70%, 05/01/22			4,580		4,669,727
Northrop Grumman Corp., 2.55%, 10/15/22			14,910		15,109,419
Rockwell Collins, Inc., 2.80%, 03/15/22			3,693		3,753,729
Rolls-Royce plc, 2.13%, 06/18/21	EUR		1,220		1,377,535
United Technologies Corp.:
3.35%, 08/16/21	USD		26,970		27,666,517
1.95%, 11/01/21			10,000		9,992,125
1.13%, 12/15/21	EUR		2,880		3,211,832
3.65%, 08/16/23	USD		1,090		1,153,473
1.15%, 05/18/24	EUR		1,580		1,793,172
					68,727,529
Air Freight & Logistics — 0.0%
FedEx Corp., 0.45%, 08/05/25			2,272		2,478,055
Airlines — 0.3%
American Airlines Group, Inc., 5.00%, 06/01/22(b)	USD		1,155		1,199,294
American Airlines Pass-Through Trust, Series 2013-2, Class B, 5.60%, 07/15/20(b)			3,331		3,386,898
Continental Airlines Pass-Through Trust, Series 2000-1, Class B, 8.39%, 11/01/20			2		1,883
Delta Air Lines, Inc.:
2.88%, 03/13/20			6,535		6,548,952
2.60%, 12/04/20			6,980		6,992,370

Security		Par (000)		Value
Airlines (continued)
Northwest Airlines Pass-Through Trust, Series 2002-1, Class G-2, 6.26%, 11/20/21	USD		429	$	440,779
					18,570,176
Auto Components — 0.1%
ZF North America Capital, Inc.(b):
4.00%, 04/29/20			5,894		5,932,371
4.50%, 04/29/22			2,431		2,487,601
					8,419,972
Automobiles — 0.6%
Daimler Finance North America LLC, 3.35%, 05/04/21(b)			5,520		5,610,935
Daimler International Finance BV, 0.25%, 08/09/21	EUR		610		668,355
Hyundai Capital America, 2.55%, 04/03/20(b)	USD		4,680		4,690,238
Nissan Motor Acceptance Corp.(b):
2.25%, 01/13/20			12,670		12,665,430
2.13%, 03/03/20			9,045		9,037,844
Volkswagen Group of America Finance LLC(b):
2.40%, 05/22/20			6,500		6,503,408
2.70%, 09/26/22			2,145		2,155,296
					41,331,506
Banks — 8.1%
AIB Group plc, (LIBOR USD 3 Month +1.87%), 4.26%, 04/10/25(a)(b)			2,985		3,103,917
Bancolombia SA, 5.95%, 06/03/21			11,615		12,239,306
Bank of America Corp.:
(LIBOR USD 3 Month +0.66%), 2.37%, 07/21/21(a)			12,225		12,244,286
(LIBOR USD 3 Month +0.37%), 2.74%, 01/23/22(a)			3,500		3,519,817
2.50%, 10/21/22			19,800		19,934,604
3.30%, 01/11/23			21,340		22,047,803
(LIBOR USD 3 Month +1.02%), 2.88%, 04/24/23(a)			5,690		5,773,264
(LIBOR USD 3 Month +0.93%), 2.82%, 07/21/23(a)			14,500		14,720,355
Bank of America NA, (LIBOR USD 3 Month + 0.65%), 3.34%, 01/25/23(a)			1,740		1,786,315
Banque Federative du Credit Mutuel SA:
0.13%, 02/05/24	EUR		3,400		3,721,024
2.63%, 03/18/24			500		608,842
Barclays Bank plc, 2.65%, 01/11/21	USD		6,000		6,017,278
Barclays plc:
2.88%, 06/08/20			17,900		17,916,826
(LIBOR USD 3 Month +1.40%), 4.61%, 02/15/23(a)			6,970		7,237,981
CaixaBank SA, 0.75%, 04/18/23	EUR		4,200		4,674,152
Capital One NA, 2.35%, 01/31/20	USD		7,215		7,217,144
Citigroup, Inc.:
2.75%, 04/25/22			2,760		2,801,082
(LIBOR USD 3 Month +0.72%), 3.14%, 01/24/23(a)			500		509,110
Citizens Bank NA:
2.25%, 03/02/20			5,665		5,666,765
2.20%, 05/26/20			7,192		7,192,375
2.55%, 05/13/21			17,131		17,248,526
3.25%, 02/14/22			4,825		4,942,388
Commonwealth Bank of Australia, 2.05%, 09/18/20(b)			4,575		4,578,321
Credit Agricole SA, 0.88%, 01/19/22	EUR		4,900		5,466,679
Credit Suisse Group Funding Guernsey Ltd., 3.13%, 12/10/20	USD		23,300		23,518,483
Danske Bank A/S, (LIBOR USD 3 Month + 1.25%), 3.00%, 09/20/22(a)(b)			17,255		17,318,233

S C H E D U L E S   O F   I N V E S T M E N T S 83

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Banks (continued)
Discover Bank, 3.35%, 02/06/23	USD		5,225	$	5,385,951
Fifth Third Bancorp, 2.60%, 06/15/22			2,700		2,728,903
HSBC Holdings plc, (LIBOR USD 3 Month + 1.06%), 3.26%, 03/13/23(a)			16,480		16,776,499
Huntington National Bank (The):
2.38%, 03/10/20			8,680		8,687,482
2.88%, 08/20/20			11,820		11,898,723
3.13%, 04/01/22			4,255		4,357,132
ING Groep NV, 1.00%, 09/20/23	EUR		4,500		5,072,597
JPMorgan Chase & Co.:
2.55%, 03/01/21	USD		6,000		6,033,679
(LIBOR USD 3 Month +0.61%), 2.76%, 06/18/22(a)			13,095		13,134,865
3.25%, 09/23/22			13,100		13,540,154
(LIBOR USD 3 Month +0.94%), 2.78%, 04/25/23(a)			12,940		13,104,996
(LIBOR USD 3 Month +0.73%), 3.56%, 04/23/24(a)			5,865		6,116,044
(LIBOR USD 3 Month +0.89%), 3.80%, 07/23/24(a)			7,900		8,331,914
KeyBank NA, 2.25%, 03/16/20			9,420		9,427,070
Mitsubishi UFJ Financial Group, Inc.:
2.95%, 03/01/21			11,887		12,001,422
3.54%, 07/26/21			2,005		2,050,122
3.22%, 03/07/22			11,470		11,739,866
Royal Bank of Scotland Group plc, 3.88%, 09/12/23			8,585		8,863,042
Santander Holdings USA, Inc.:
4.45%, 12/03/21			16,970		17,724,592
3.70%, 03/28/22			5,480		5,633,879
3.40%, 01/18/23			860		880,033
Santander UK Group Holdings plc:
3.57%, 01/10/23			1,715		1,739,509
(LIBOR USD 3 Month +1.08%), 3.37%, 01/05/24(a)			3,715		3,773,485
Santander UK plc, 5.00%, 11/07/23(b)			15,318		16,265,574
Societe Generale SA, 0.00%, 05/27/22	EUR		1,900		2,075,005
Sumitomo Mitsui Financial Group, Inc., 2.85%, 01/11/22	USD		15,220		15,426,339
SunTrust Banks, Inc.:
(LIBOR USD 3 Month +0.50%), 3.53%, 10/26/21(a)			19,125		19,393,787
2.70%, 01/27/22			1,655		1,673,481
Svenska Handelsbanken AB, 3.35%, 05/24/21			6,075		6,202,338
Toronto-Dominion Bank (The), 0.38%, 04/25/24	EUR		3,400		3,748,195
UBS Group Funding Switzerland AG(b):
2.65%, 02/01/22	USD		15,085		15,212,885
(LIBOR USD 3 Month +0.95%), 2.86%, 08/15/23(a)			5,810		5,872,676
Wells Fargo & Co.:
2.50%, 03/04/21			10,000		10,046,946
1.13%, 10/29/21	EUR		2,005		2,240,923
3.07%, 01/24/23	USD		1,855		1,889,030
3.75%, 01/24/24			8,005		8,470,409
Wells Fargo Bank NA, (LIBOR USD 3 Month + 0.49%), 3.33%, 07/23/21(a)			37,630		37,961,949
Westpac Banking Corp., 3.15%, 01/16/24(b)			28,235		29,631,303
					597,117,675
Beverages — 0.2%
Anheuser-Busch InBev Worldwide, Inc., 4.15%, 01/23/25.			8,600		9,392,889
Coca-Cola Co. (The), 1.13%, 09/22/22	EUR		2,300		2,604,327
Keurig Dr Pepper, Inc., 4.06%, 05/25/23	USD		4,200		4,441,706
					16,438,922

Security		Par (000)		Value
Biotechnology — 0.3%
AbbVie, Inc.:
2.90%, 11/06/22	USD		1,945	$	1,982,287
3.75%, 11/14/23			17,100		17,983,325
Celgene Corp., 2.75%, 02/15/23			3,030		3,084,027
Gilead Sciences, Inc., 3.25%, 09/01/22			1,965		2,030,049
					25,079,688
Capital Markets — 0.5%
Credit Suisse Group AG, 3.57%, 01/09/23(b)			8,565		8,758,157
Deutsche Bank AG, 4.25%, 02/04/21			11,560		11,689,133
ING Bank NV, 0.00%, 04/08/22	EUR		2,400		2,624,015
Moody’s Corp., 2.63%, 01/15/23	USD		5,085		5,146,090
Morgan Stanley, 2.75%, 05/19/22			105		106,525
UBS AG, (EUR Swap Annual 5 Year +3.40%), 4.75%, 02/12/26(a)	EUR		6,025		6,951,391
Volvo Treasury AB, (EURIBOR 3 Month + 0.65%), 0.22%, 09/13/21(a)			4,200		4,607,225
					39,882,536
Chemicals — 0.2%
Air Liquide Finance SA, 0.38%, 04/18/22			2,500		2,763,159
BASF SE, 2.00%, 12/05/22			4,520		5,259,768
International Flavors &Fragrances, Inc., 0.50%, 09/25/21			4,080		4,488,709
					12,511,636
Commercial Services &Supplies — 0.0%
Waste Management, Inc., 2.95%, 06/15/24	USD		2,710		2,804,209
Consumer Finance — 2.5%
AerCap Ireland Capital DAC:
4.25%, 07/01/20			3,540		3,588,632
4.50%, 05/15/21			12,270		12,667,272
3.95%, 02/01/22			7,750		8,001,992
3.50%, 05/26/22			5,035		5,163,346
4.63%, 07/01/22			4,515		4,767,540
2.88%, 08/14/24			11,000		11,010,651
American Express Co., 2.50%, 08/01/22			3,865		3,903,799
American Honda Finance Corp., 1.38%, 11/10/22	EUR		890		1,012,433
Capital One Financial Corp.:
2.40%, 10/30/20	USD		4,420		4,432,604
3.20%, 01/30/23			10,000		10,262,653
Ford Motor Credit Co. LLC:
2.60%, 11/04/19			17,070		17,069,235
3.34%, 03/28/22			1,772		1,774,332
4.14%, 02/15/23			9,830		9,980,700
5.58%, 03/18/24			21,900		23,281,230
General Motors Financial Co., Inc.:
3.70%, 11/24/20			7,720		7,816,500
3.20%, 07/06/21			29,901		30,207,673
4.20%, 11/06/21			4,325		4,461,910
Harley-Davidson Financial Services, Inc., 2.15%, 02/26/20(b)			4,440		4,431,765
John Deere Capital Corp., 2.60%, 03/07/24			2,310		2,357,091
Synchrony Financial, 2.85%, 07/25/22			4,740		4,779,888
Volkswagen Leasing GmbH:
(EURIBOR 3 Month +0.45%), 0.07%, 08/02/21(a)	EUR		5,600		6,104,392
1.00%, 02/16/23			9,800		10,893,858
					187,969,496
Containers & Packaging — 0.0%
WRKCo, Inc., 3.75%, 03/15/25	USD		2,210		2,326,395

84 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Diversified Financial Services — 1.4%
AIG Global Funding, 1.95%, 10/18/19(b)	USD		1,255	$	1,254,940
GE Capital International Funding Co. Unlimited Co., 2.34%, 11/15/20			22,130		22,076,613
JPMorgan Chase Bank NA(a):
(LIBOR USD 3 Month +0.28%), 2.60%, 02/01/21			26,955		26,999,685
(LIBOR USD 3 Month +0.35%), 3.09%, 04/26/21			36,790		36,971,013
Shell International Finance BV, 1.25%, 03/15/22	EUR		950		1,072,938
Siemens Financieringsmaatschappij NV:
0.00%, 09/05/21			7,830		8,572,303
0.38%, 09/06/23			2,585		2,874,818
					99,822,310
Diversified Telecommunication Services — 1.5%
AT&T, Inc., 3.80%, 03/15/22	USD		21,950		22,786,029
BellSouth LLC, 4.27%, 04/26/20(b)(e)			36,000		36,362,880
Orange SA:
0.50%, 01/15/22	EUR		3,400		3,758,875
0.75%, 09/11/23			8,000		8,980,491
Telstra Corp. Ltd., 3.50%, 09/21/22			4,700		5,670,973
Verizon Communications, Inc.:
2.95%, 03/15/22	USD		25,515		26,125,040
0.50%, 06/02/22	EUR		1,675		1,851,883
3.88%, 02/08/29	USD		2,965		3,253,687
					108,789,858
Electric Utilities — 1.3%
Alliant Energy Finance LLC, 3.75%, 06/15/23(b)			8,085		8,451,371
American Electric Power Co., Inc., 2.15%, 11/13/20			10,525		10,531,114
Duke Energy Corp.:
1.80%, 09/01/21			21,874		21,776,394
3.95%, 10/15/23			8,435		8,952,527
ESB Finance DAC, 3.49%, 01/12/24	EUR		1,350		1,694,737
Exelon Corp., 2.45%, 04/15/21	USD		4,890		4,900,952
FirstEnergy Corp., Series A, 2.85%, 07/15/22			4,346		4,412,000
Florida Power & Light Co., (LIBOR USD 3 Month +0.40%), 2.64%, 05/06/22(a)			9,155		9,157,515
Iberdrola International BV, 3.50%, 02/01/21	EUR		4,000		4,573,618
ITC Holdings Corp., 2.70%, 11/15/22	USD		2,180		2,200,970
NextEra Energy Capital Holdings, Inc., 2.40%, 09/01/21.			16,865		16,969,055
RTE Reseau de Transport d’Electricite SADIR, 1.63%, 10/08/24	EUR		1,000		1,174,369
					94,794,622
Electrical Equipment — 0.1%
Eaton Capital Unlimited Co., 0.02%, 05/14/21			6,455		7,048,390
Schneider Electric SE, 0.25%, 09/09/24			1,400		1,547,457
					8,595,847
Electronic Equipment, Instruments & Components — 0.1%
Amphenol Corp., 2.20%, 04/01/20	USD		6,520		6,522,141
Energy Equipment & Services — 0.3%
Baker Hughes a GE Co. LLC, 2.77%, 12/15/22			6,130		6,232,039
Halliburton Co., 3.50%, 08/01/23			11,000		11,431,148
Schlumberger Finance BV, 0.00%, 10/15/24	EUR		1,520		1,654,056
					19,317,243
Equity Real Estate Investment Trusts (REITs) — 0.2%
American Tower Corp.:
3.45%, 09/15/21	USD		9,200		9,411,442
3.50%, 01/31/23			3,070		3,180,591
Crown Castle International Corp., 3.20%, 09/01/24			3,205		3,292,140

Security		Par (000)		Value
Equity Real Estate Investment Trusts (REITs) (continued)
Nationwide Health Properties, Inc., 6.59%, 07/07/38.	USD		1,400	$	1,825,286
					17,709,459
Food Products — 0.4%
Conagra Brands, Inc., (LIBOR USD 3 Month + 0.75%), 3.03%, 10/22/20(a)			12,485		12,487,553
Kraft Heinz Foods Co., 4.88%, 02/15/25(b)			4,618		4,754,124
Wm Wrigley Jr. Co., 3.38%, 10/21/20(b)			8,820		8,945,653
					26,187,330
Health Care Equipment & Supplies — 0.6%
Abbott Ireland Financing DAC, 0.88%, 09/27/23	EUR		1,520		1,710,163
Abbott Laboratories, 2.90%, 11/30/21	USD		9,930		10,109,534
Becton Dickinson and Co.:
2.68%, 12/15/19			7,013		7,014,700
2.40%, 06/05/20			6,145		6,150,023
DH Europe Finance II SARL, 0.20%, 03/18/26	EUR		2,625		2,852,364
Medtronic Global Holdings SCA:
0.00%, 12/02/22			9,505		10,375,722
0.38%, 03/07/23			2,225		2,453,576
					40,666,082
Health Care Providers & Services — 0.6%
Anthem, Inc., 3.13%, 05/15/22	USD		2,685		2,746,556
Cigna Corp., 3.20%, 09/17/20			15,000		15,145,377
CVS Health Corp.:
3.35%, 03/09/21			9,930		10,088,792
2.63%, 08/15/24			495		497,201
4.30%, 03/25/28			9,250		10,002,351
Express Scripts Holding Co., 2.60%, 11/30/20			8,700		8,737,805
					47,218,082
Hotels, Restaurants & Leisure — 0.2%
Carnival Corp.:
3.95%, 10/15/20			4,525		4,605,613
1.88%, 11/07/22	EUR		4,020		4,630,781
Marriott International, Inc., 2.88%, 03/01/21	USD		2,620		2,643,243
					11,879,637
Household Products — 0.0%
Procter & Gamble Co. (The):
2.00%, 08/16/22	EUR		1,425		1,650,448
0.63%, 10/30/24			840		944,519
					2,594,967
Independent Power and Renewable Electricity Producers — 0.1%
Exelon Generation Co. LLC, 5.20%, 10/01/19.	USD		4,600		4,600,000
NRG Energy, Inc., 3.75%, 06/15/24(b)			1,940		1,996,280
					6,596,280
Industrial Conglomerates — 0.4%
General Electric Co., 5.50%, 01/08/20			3,700		3,728,722
Honeywell International, Inc., 1.30%, 02/22/23	EUR		12,010		13,695,830
Roper Technologies, Inc., 3.65%, 09/15/23	USD		8,180		8,586,996
					26,011,548
Insurance — 0.4%
Allianz Finance II BV, 0.25%, 06/06/23	EUR		2,500		2,760,843
American International Group, Inc.:
3.38%, 08/15/20	USD		3,952		3,998,792
6.40%, 12/15/20			1,965		2,064,877
Aon plc, 2.80%, 03/15/21			3,789		3,817,213
Marsh & McLennan Cos., Inc., 2.35%, 03/06/20			7,145		7,148,074
Metropolitan Life Global Funding I:
0.00%, 09/23/22	EUR		830		907,112
2.38%, 01/11/23			1,285		1,510,011
0.38%, 04/09/24			2,700		2,983,164
Pricoa Global Funding I, 2.45%, 09/21/22(b)	USD		4,090		4,125,678

S C H E D U L E S   O F   I N V E S T M E N T S 85

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Insurance (continued)
Willis Towers Watson plc, 5.75%, 03/15/21	USD		2,206	$	2,312,515
					31,628,279
Interactive Media & Services — 0.1%
Baidu, Inc., 2.88%, 07/06/22			8,205		8,241,348
IT Services — 0.5%
Fiserv, Inc.:
3.50%, 10/01/22			8,270		8,589,808
2.75%, 07/01/24			45		45,782
International Business Machines Corp.:
0.38%, 01/31/23	EUR		2,665		2,943,303
3.00%, 05/15/24	USD		13,570		14,069,464
Mastercard, Inc., 1.10%, 12/01/22	EUR		3,955		4,469,086
PayPal Holdings, Inc., 2.40%, 10/01/24	USD		5,065		5,092,460
Total System Services, Inc., 3.75%, 06/01/23			4,640		4,828,919
					40,038,822
Machinery — 0.1%
Atlas Copco AB, 2.50%, 02/28/23	EUR		1,650		1,962,944
Illinois Tool Works, Inc., 0.25%, 12/05/24			1,930		2,123,352
Parker-Hannifin Corp., 2.70%, 06/14/24	USD		2,115		2,154,191
					6,240,487
Media — 0.9%
Charter Communications Operating LLC:
3.58%, 07/23/20			13,200		13,318,222
4.46%, 07/23/22			11,709		12,327,481
4.50%, 02/01/24			2,280		2,449,457
Comcast Corp., 3.70%, 04/15/24			9,410		10,034,019
Cox Communications, Inc., 3.15%, 08/15/24(b)			7,755		7,941,911
Discovery Communications LLC:
4.38%, 06/15/21			3,695		3,820,503
3.30%, 05/15/22			10,000		10,235,940
Interpublic Group of Cos., Inc. (The):
3.50%, 10/01/20			4,490		4,542,743
3.75%, 10/01/21			1,545		1,583,875
Sky Ltd., 1.50%, 09/15/21	EUR		2,040		2,292,814
					68,546,965
Metals & Mining — 0.0%
Anglo American Capital plc, 4.13%, 04/15/21(b)	USD		2,221		2,265,642
Multi-Utilities — 0.8%
CenterPoint Energy, Inc., 2.50%, 09/01/22			5,150		5,180,029
Dominion Energy, Inc.(e):
2.52%, 07/01/20			2,525		2,530,646
2.72%, 08/15/21			10,910		10,976,697
DTE Energy Co., Series D, 3.70%, 08/01/23			4,690		4,917,768
Engie SA, 0.38%, 02/28/23	EUR		3,600		3,978,753
Sempra Energy:
1.63%, 10/07/19	USD		7,405		7,404,297
(LIBOR USD 3 Month +0.50%), 2.80%, 01/15/21(a)			6,185		6,178,304
Veolia Environnement SA, 0.67%, 03/30/22	EUR		5,400		5,981,950
WEC Energy Group, Inc., 3.38%, 06/15/21	USD		12,505		12,776,244
					59,924,688
Oil, Gas & Consumable Fuels — 2.9%
Apache Corp.:
3.63%, 02/01/21			497		503,052
3.25%, 04/15/22			2,286		2,327,220
BP Capital Markets plc, 1.53%, 09/26/22	EUR		6,405		7,313,082
Concho Resources, Inc., 4.38%, 01/15/25	USD		8,530		8,841,726
Continental Resources, Inc., 3.80%, 06/01/24			11,070		11,280,934
Enbridge Energy Partners LP, 5.20%, 03/15/20			5,330		5,396,821
Enbridge, Inc., 2.90%, 07/15/22			530		540,008
Encana Corp., 3.90%, 11/15/21			4,850		4,968,561

Security		Par (000)		Value
Oil, Gas & Consumable Fuels (continued)
Energy Transfer Operating LP:
4.15%, 10/01/20	USD		21,449	$	21,768,725
3.60%, 02/01/23			2,900		2,978,987
4.50%, 04/15/24			1,433		1,527,494
Energy Transfer Partners LP, 5.00%, 10/01/22			12,400		13,156,296
Kinder Morgan Energy Partners LP, 4.25%, 09/01/24			1,530		1,640,545
Kinder Morgan, Inc., 5.00%, 02/15/21(b)			7,000		7,230,354
MPLX LP:
(LIBOR USD 3 Month +0.90%), 3.00%, 09/09/21(a)			8,130		8,156,992
6.25%, 10/15/22(b)			2,658		2,724,551
3.50%, 12/01/22(b)			4,885		5,023,638
Newfield Exploration Co., 5.63%, 07/01/24			38,388		42,347,297
Occidental Petroleum Corp.:
4.85%, 03/15/21			13,350		13,805,636
2.60%, 08/13/21			2,285		2,299,883
2.70%, 08/15/22			11,440		11,546,454
Sabine Pass Liquefaction LLC, 5.75%, 05/15/24			2,747		3,061,839
Spectra Energy Partners LP, 4.75%, 03/15/24			1,710		1,862,830
Sunoco Logistics Partners Operations LP,
5.50%, 02/15/20			3,000		3,030,922
Sunoco LP, 4.88%, 01/15/23			860		882,575
Total Capital International SA, 2.13%, 03/15/23	EUR		2,600		3,056,612
TransCanada PipeLines Ltd., 3.75%, 10/16/23	USD		1,580		1,665,780
Williams Cos., Inc. (The):
5.25%, 03/15/20			8,168		8,274,332
4.00%, 11/15/21			4,650		4,767,003
3.60%, 03/15/22			3,340		3,430,783
3.70%, 01/15/23			7,000		7,238,927
					212,649,859
Pharmaceuticals — 1.7%
Allergan Finance LLC, 3.25%, 10/01/22			12,773		13,045,959
Allergan Funding SCS:
3.00%, 03/12/20			25,100		25,171,700
3.45%, 03/15/22			39,913		40,902,087
Allergan, Inc., 2.80%, 03/15/23			6,200		6,256,543
Bayer US Finance II LLC, 4.25%, 12/15/25(b)			4,370		4,668,714
Bayer US Finance LLC, 2.38%, 10/08/19(b)			9,135		9,134,926
Merck Financial Services GmbH, 0.01%, 12/15/23	EUR		8,200		8,957,163
Novartis Finance SA, 0.50%, 08/14/23			815		910,298
Roche Finance Europe BV:
0.50%, 02/27/23			1,850		2,064,398
0.88%, 02/25/25			1,400		1,603,826
Sanofi, 0.00%, 09/13/22			1,200		1,313,839
Shire Acquisitions Investments Ireland DAC, 2.88%, 09/23/23	USD		4,600		4,689,469
Takeda Pharmaceutical Co. Ltd., 4.40%, 11/26/23(b)			6,815		7,339,558
					126,058,480
Real Estate Management & Development — 0.1%
Unique Pub Finance Co. plc (The), Series M, 7.40%, 03/28/24(e)	GBP		4,920		6,935,206
Road & Rail — 1.5%
CSX Corp., 3.70%, 10/30/20	USD		5,920		5,992,476
Penske Truck Leasing Co. LP(b):
3.05%, 01/09/20			20,121		20,145,217
3.30%, 04/01/21			7,930		8,036,797
3.38%, 02/01/22			14,259		14,552,896
4.25%, 01/17/23			3,235		3,421,061
2.70%, 03/14/23			11,114		11,201,634
2.70%, 11/01/24			3,595		3,602,565

86 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Road & Rail (continued)
Ryder System, Inc.:
2.65%, 03/02/20	USD		5,675	$	5,682,183
2.88%, 09/01/20			2,250		2,264,648
2.80%, 03/01/22			11,000		11,139,460
2.88%, 06/01/22			3,575		3,632,095
3.75%, 06/09/23			4,735		4,967,642
3.65%, 03/18/24			9,500		9,981,126
2.50%, 09/01/24			3,110		3,121,198
					107,740,998
Semiconductors & Semiconductor Equipment — 1.3%
Analog Devices, Inc., 2.85%, 03/12/20			2,115		2,122,622
Broadcom Corp., 2.38%, 01/15/20			27,055		27,053,289
Broadcom, Inc., 3.13%, 04/15/21(b)			8,380		8,460,386
Lam Research Corp., 2.80%, 06/15/21			15,230		15,411,630
NXP BV(b):
4.13%, 06/01/21			18,800		19,289,333
4.63%, 06/15/22			3,820		3,998,315
3.88%, 09/01/22			15,404		15,897,027
QUALCOMM, Inc., 2.60%, 01/30/23			3,065		3,114,718
					95,347,320
Software — 0.2%
Amadeus Capital Markets SAU, 1.63%, 11/17/21	EUR		3,100		3,486,201
CA, Inc., 3.60%, 08/15/22	USD		3,655		3,727,806
Dassault Systemes SE, 0.00%, 09/16/22	EUR		2,800		3,062,955
SAP SE, 0.25%, 03/10/22			3,900		4,291,414
					14,568,376
Technology Hardware, Storage & Peripherals — 0.7%
Apple, Inc., 1.00%, 11/10/22			5,250		5,938,973
Dell International LLC(b):
4.42%, 06/15/21	USD		4,668		4,813,211
5.45%, 06/15/23			24,470		26,630,174
Hewlett Packard Enterprise Co., 3.60%, 10/15/20(e)			8,000		8,103,020
Xerox Corp., 3.50%, 08/20/20			8,620		8,645,429
					54,130,807
Textiles, Apparel & Luxury Goods — 0.1%
LVMH Moet Hennessy Louis Vuitton SE:
0.00%, 02/28/21	EUR		6,400		7,006,108
0.38%, 05/26/22			500		551,733
					7,557,841
Tobacco — 1.2%
Altria Group, Inc.:
3.49%, 02/14/22	USD		5,610		5,755,329
2.85%, 08/09/22			8,485		8,586,290
1.00%, 02/15/23	EUR		4,650		5,153,789
3.80%, 02/14/24	USD		7,700		8,049,308
BAT Capital Corp.:
2.76%, 08/15/22			8,765		8,842,396
3.22%, 08/15/24			10,000		10,109,491
2.79%, 09/06/24			21,500		21,313,981
BAT International Finance plc:
3.25%, 06/07/22(b)			545		556,733
0.88%, 10/13/23	EUR		2,400		2,648,338
Philip Morris International, Inc., 0.13%, 08/03/26			1,140		1,214,158
Reynolds American, Inc.:
6.88%, 05/01/20	USD		7,889		8,095,387
3.25%, 06/12/20			6,460		6,500,859
					86,826,059

Security		Par (000)		Value
Trading Companies & Distributors — 0.3%
Air Lease Corp., 2.63%, 07/01/22	USD		8,375	$	8,409,119
Aviation Capital Group LLC, 2.88%, 01/20/22(b)			7,310		7,339,581
International Lease Finance Corp., 4.63%, 04/15/21			5,702		5,871,812
					21,620,512
Transportation Infrastructure — 0.0%
Autoroutes du Sud de la France SA, 2.95%, 01/17/24	EUR		2,100		2,570,814
Wireless Telecommunication Services — 0.1%
Sprint Spectrum Co. LLC(b):
3.36%, 09/20/21(e)	USD		1,573		1,578,397
4.74%, 03/20/25			8,110		8,621,011
					10,199,408
Total Corporate Bonds — 33.8% (Cost: $2,475,125,764)					2,503,455,112
Foreign Agency Obligations — 0.3%
Brazil — 0.2%
Centrais Eletricas Brasileiras SA, 5.75%, 10/27/21(b)			11,000		11,490,710
Chile — 0.1%
Empresa Nacional del Petroleo, 5.25%, 08/10/20(b)			6,150		6,282,609
Saudi Arabia — 0.0%
Saudi Arabian Oil Co., 2.88%, 04/16/24(b)			3,245		3,280,695
Total Foreign Agency Obligations — 0.3% (Cost: $20,388,073)					21,054,014
Foreign Government Obligations — 1.2%
Canada — 1.1%
Canada Housing Trust No. 1, 2.65%, 12/15/28(b)	CAD		100,195		81,086,973
Cyprus — 0.1%
Republic of Cyprus, 4.63%, 02/03/20(b)	EUR		8,454		9,366,660
Total Foreign Government Obligations — 1.2% (Cost: $88,605,249)					90,453,633
		Shares
Investment Companies — 2.2%
iShares Short Maturity Bond ETF*			3,180,000		160,081,199
Total Investment Companies — 2.2% (Cost: $159,438,279)					160,081,199
		Par (000)
Municipal Bonds — 0.3%
South Carolina Public Service Authority;
Series 2016D, RB, 2.39%, 12/01/23	USD		13,915		14,232,123
Series 2012E, RB, 3.72%, 12/01/23			8,400		8,780,520
Total Municipal Bonds — 0.3% (Cost: $21,397,051)					23,012,643

S C H E D U L E S   O F   I N V E S T M E N T S 87

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Non-Agency Mortgage-Backed Securities — 15.1%
Collateralized Mortgage Obligations — 2.1%
Banc of America Mortgage Trust, Series 2003-J, Class 2A1, 4.59%, 11/25/33(c)	USD		339	$	343,471
Bear Stearns ARM Trust, Series 2004-5, Class 2A, 4.47%, 07/25/34(c)			483		487,046
BlackRock Capital Finance LP, Series 1997-R2, Class AP, 1.15%, 12/25/35(b)(c)*			19		16,809
Chase Home Lending Mortgage Trust(b)(c):
Series 2019-ATR2, Class A11, 2.92%, 07/25/49			4,967		4,986,732
Series 2019-ATR2, Class A3, 3.50%, 07/25/49			10,630		10,783,236
CHL Mortgage Pass-Through Trust:
Series 2004-29, Class 1A1, 2.56%, 02/25/35(c)			350		339,868
Series 2005-17, Class 1A6, 5.50%, 09/25/35			775		777,536
Series 2005-HYB8, Class 2A1, 4.20%, 12/20/35(c)			977		875,035
Gosforth Funding plc, Series 2018-1A, Class A1, 2.58%, 08/25/60(b)(c)			10,581		10,573,800
JPMorgan Mortgage Trust(b)(c):
Series 2016-2, Class A1, 2.82%, 06/25/46			13,040		13,045,904
Series 2017-1, Class A4, 3.50%, 01/25/47			13,840		14,012,874
Series 2017-3, Class 1A6, 3.00%, 08/25/47			10,982		11,030,985
Series 2017-6, Class A6, 3.00%, 12/25/48			7,211		7,247,222
Lanark Master Issuer plc, Series 2019-1A, Class 1A1, 2.90%, 12/22/69(b)(c)			8,941		8,961,022
MortgageIT Trust, Series 2004-1, Class A1, 2.80%, 11/25/34(c)			954		961,943
National RMBS Trust, Series 2012-2, Class A1, 2.11%, 06/20/44(c)	AUD		966		653,516
New Residential Mortgage Loan Trust(b)(c):
Series 2016-3A, Class A1B, 3.25%, 09/25/56	USD		2,850		2,896,749
Series 2018-1A, Class A1A, 4.00%, 12/25/57			9,414		9,764,014
Permanent Master Issuer plc, Series 2018-1A, Class 1A1, 2.68%, 07/15/58(b)(c)			16,640		16,679,379
RCO V Mortgage LLC, Series 2019-1, Class A1, 3.72%, 05/24/24(b)(e)			9,540		9,579,361
Seasoned Credit Risk Transfer Trust, Series 2018-2, Class MA, 3.50%, 11/25/57			10,511		10,947,229
Sequoia Mortgage Trust(b)(c):
Series 2017-CH1, Class A2, 3.50%, 08/25/47			8,654		8,770,452
Series 2017-CH2, Class A10, 4.00%, 12/25/47			3,983		4,025,180
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-13, Class A2, 0.49%, 09/25/34(c)			836		800,583
TORRENS Trust, Series 2013-1, Class A, 2.01%, 04/12/44(c)	AUD		5,318		3,589,716
Walsh Acceptance, Series 1997-2, Class A, 4.19%, 03/01/27(b)(c)	USD		5		2,726
					152,152,388
Commercial Mortgage-Backed Securities — 13.0%
280 Park Avenue Mortgage Trust, Series 2017- 280P,Class D, 3.56%, 09/15/34(b)(c)			6,910		6,922,904
AOA Mortgage Trust, Series 2015-1177, Class D, 3.11%, 12/13/29(b)(c)			4,855		4,878,769
Aventura Mall Trust, Series 2013-AVM, Class A, 3.87%, 12/05/32(b)(c)			16,080		16,268,921

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
BAMLL Commercial Mortgage Securities Trust(b):
Series 2012-PARK, Class A, 2.96%, 12/10/30	USD		4,175	$	4,296,204
Series 2018-DSNY,Class A, 2.88%, 09/15/34(c)			12,495		12,463,642
BAMLL Trust, Series 2011-FSHN, Class D, 5.62%, 07/11/33(b)			7,600		7,908,139
BANK:
Series 2018-BN14, Class A2, 4.13%, 09/15/60			6,000		6,437,052
Series 2019-BN16, Class A2, 3.93%, 02/15/52			12,200		13,019,503
Bear Stearns Commercial Mortgage Securities Trust(c):
Series 2005-PW10, Class AJ, 5.78%, 12/11/40			19,428		19,846,683
Series 2005-PW10, Class B, 5.79%, 12/11/40			13,697		13,974,205
BX Commercial Mortgage Trust, Series 2018- IND, Class A, 2.78%, 11/15/35(b)(c)			4,712		4,711,666
Caesars Palace Las Vegas Trust, Series 2017- VICI, Class A, 3.53%, 10/15/34(b)			12,989		13,502,640
CFCRE Commercial Mortgage Trust, Series 2018-TAN, Class B, 4.69%, 02/15/33(b)			12,500		13,302,216
CGDBB Commercial Mortgage Trust, Series 2017-BIOC, Class A, 2.82%, 07/15/32(b)(c)			5,940		5,939,992
Citigroup Commercial Mortgage Trust:
Series 2012-GC8, Class A4, 3.02%, 09/10/45			14,552		14,887,830
Series 2013-375P,Class A, 3.25%, 05/10/35(b)			9,460		9,807,095
Series 2013-GC11, Class A3, 2.82%, 04/10/46			27,635		28,230,065
Series 2016-P3, Class A2, 2.74%, 04/15/49			13,102		13,158,147
CLNS Trust, Series 2017-IKPR, Class A, 2.85%, 06/11/32(b)(c)			21,360		21,306,468
Commercial Mortgage Trust:
Series 2012-CR1, Class A3, 3.39%, 05/15/45			9,571		9,820,367
Series 2012-CR3, Class A3, 2.82%, 10/15/45			7,746		7,853,331
Series 2013-CR10, Class ASB, 3.80%, 08/10/46			2,637		2,723,748
Series 2013-CR12, Class A4, 4.05%, 10/10/46			15,633		16,660,466
Series 2013-CR13, Class A4, 4.19%, 11/10/46(c)			4,515		4,866,510
Series 2014-CR15, Class ASB, 3.60%, 02/10/47			5,367		5,530,143
Series 2014-UBS3, Class ASB, 3.37%, 06/10/47			18,853		19,349,245
Series 2014-UBS5, Class ASB, 3.55%, 09/10/47			7,294		7,510,478
Series 2014-UBS6, Class ASB, 3.39%, 12/10/47			1,800		1,858,576
Series 2015-CR22, Class A3, 3.21%, 03/10/48			28,180		28,669,520
Series 2015-CR23, Class A2, 2.85%, 05/10/48			16,620		16,624,564
Series 2015-CR24, Class ASB, 3.45%, 08/10/48			7,580		7,857,850
Series 2015-LC21, Class A2, 2.98%, 07/10/48			30,242		30,298,000

88 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Series 2015-LC21, Class ASB, 3.42%, 07/10/48	USD		9,600	$	9,967,488
Core Industrial Trust, Series 2015-CALW, Class A, 3.04%, 02/10/34(b)			22,521		23,000,275
CSAIL Commercial Mortgage Trust:
Series 2015-C1, Class A4, 3.51%, 04/15/50			6,563		6,955,990
Series 2015-C1, Class ASB, 3.35%, 04/15/50			13,700		14,141,817
Exantas Capital Corp. Ltd., Series 2018-RSO6, Class A, 2.85%, 06/15/35(b)(c)			6,418		6,415,678
Four Times Square Trust Commercial Mortgage Pass-Through Certificates, Series 2006-4TS, Class A, 5.40%, 12/13/28(b)			8,312		8,570,336
Great Wolf Trust, Series 2017-WOLF, Class A, 2.88%, 09/15/34(b)(c)			5,980		5,978,083
GS Mortgage Securities Corp. II, Series 2013-GC10, Class A4, 2.68%, 02/10/46			4,540		4,617,806
GS Mortgage Securities Corp. Trust(b):
Series 2012-ALOH, Class A, 3.55%, 04/10/34			17,000		17,490,691
Series 2018-FBLU, Class A, 2.98%, 11/15/35(c)			12,230		12,229,880
Series 2019-SOHO, Class A, 2.93%, 06/15/36(c)			12,154		12,165,339
GS Mortgage Securities Trust:
Series 2011-GC5, Class AS, 5.21%, 08/10/44(b)(c)			8,891		9,309,638
Series 2012-GC6, Class A3, 3.48%, 01/10/45			11,008		11,248,046
Series 2013-GC13, Class AAB, 3.72%, 07/10/46(c)			6,190		6,361,404
Series 2013-GC14, Class A3, 3.53%, 08/10/46			7,899		7,947,407
Series 2014-GC24, Class AAB, 3.65%, 09/10/47			9,484		9,821,966
Series 2019-GC38, Class A2, 3.87%, 02/10/52			8,134		8,691,966
Hawaii Hotel Trust, Series 2019-MAUI, Class A, 3.18%, 05/15/38(b)(c)			18,950		18,967,720
JPMBB Commercial Mortgage Securities Trust, Series 2014-C23, Class ASB, 3.66%, 09/15/47			6,692		6,924,292
JPMCC Commercial Mortgage Securities Trust, Series 2017-JP6, Class A3, 3.11%, 07/15/50			17,260		17,769,460
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2019-BKWD, Class A, 3.05%, 09/15/29(b)(c)			1,864		1,866,133
JPMorgan Chase Commercial Mortgage Securities Trust(b):
Series 2003-CB7, Class F, 5.89%, 01/12/38(c)			522		522,917
Series 2011-C4, Class A4, 4.39%, 07/15/46			34,406		35,272,125
Series 2012-HSBC, Class A, 3.09%, 07/05/32			16,133		16,532,978
Series 2018-WPT, Class AFX, 4.25%, 07/05/33			7,070		7,564,286
KNDL Mortgage Trust(b)(c):
Series 2019-KNSQ, Class A, 2.83%, 05/15/36			9,012		9,011,963
Series 2019-KNSQ, Class D, 3.38%, 05/15/36			2,972		2,972,464
LMREC, Inc., Series 2015-CRE1, Class AR, 3.02%, 02/22/32(b)(c)			1,276		1,270,060
Madison Avenue Trust, Series 2013-650M, Class A, 3.84%, 10/12/32(b)			16,255		16,412,327

Security		Par (000)		Value
Commercial Mortgage-Backed Securities (continued)
Morgan Stanley Bank of America Merrill Lynch Trust:
Series 2013-C13, Class A4, 4.04%, 11/15/46	USD		11,900	$	12,737,870
Series 2013-C9, Class AAB, 2.66%, 05/15/46			4,335		4,369,950
Series 2014-C15, Class A4, 4.05%, 04/15/47			9,800		10,525,622
Series 2014-C18, Class ASB, 3.62%, 10/15/47			9,900		10,226,350
Series 2014-C19, Class A2, 3.10%, 12/15/47			245		245,288
Series 2014-C19, Class ASB, 3.33%, 12/15/47			7,950		8,185,299
Series 2015-C23, Class A2, 2.98%, 07/15/50			25,100		25,129,477
Morgan Stanley Capital I Trust:
Series 2007-T27, Class AJ, 6.14%, 06/11/42(c)			5,329		5,662,267
Series 2012-C4, Class A4, 3.24%, 03/15/45			12,941		13,202,028
Series 2014-CPT, Class A, 3.35%, 07/13/29(b)			11,100		11,293,565
Series 2014-MP, Class A, 3.47%, 08/11/33(b)			4,215		4,317,632
Series 2018-BOP, Class A, 2.88%, 08/15/33(b)(c)			3,810		3,790,914
Natixis Commercial Mortgage Securities Trust, Series 2018-FL1, Class A, 3.15%, 06/15/35(b)(c)			6,084		6,065,148
PFP Ltd., Series 2019-5, Class A, 3.00%, 04/14/36(b)(c)			6,851		6,854,909
RAIT Trust, Series 2017-FL7, Class A, 2.98%, 06/15/37(b)(c)			733		730,720
UBS Commercial Mortgage Trust, Series 2012-C1, Class A3, 3.40%, 05/10/45			4,205		4,298,459
UBS-Barclays Commercial Mortgage Trust:
Series 2013-C5, Class AS, 3.35%, 03/10/46(b)			9,713		9,992,972
Series 2013-C6, Class ASB, 2.79%, 04/10/46			5,644		5,690,628
VNDO Mortgage Trust, Series 2012-6AVE, Class A, 3.00%, 11/15/30(b)			17,397		17,801,278
Wells Fargo Commercial Mortgage Trust:
Series 2014-LC16, Class ASB, 3.48%, 08/15/50			10,962		11,289,284
Series 2015-C28, Class ASB, 3.31%, 05/15/48			4,986		5,161,512
Series 2015-LC22, Class ASB, 3.57%, 09/15/58			8,810		9,212,908
WFRBS Commercial Mortgage Trust:
Series 2011-C5, Class A4, 3.67%, 11/15/44			28,691		29,370,305
Series 2012-C10, Class ASB, 2.45%, 12/15/45			13,495		13,533,858
Series 2012-C6, Class A4, 3.44%, 04/15/45			1,970		2,008,746
Series 2014-C21, Class ASB, 3.39%, 08/15/47			14,198		14,524,448
Series 2014-C21, Class ASBF, 2.58%, 08/15/47(b)(c)			3,673		3,677,153
Series 2014-C24, Class ASB, 3.32%, 11/15/47			10,315		10,629,643
					961,013,707

S C H E D U L E S   O F   I N V E S T M E N T S 89

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security		Par (000)		Value
Interest Only Commercial Mortgage-Backed Securities — 0.0%(c)
Commercial Mortgage Trust, Series 2015- CR23, Class XA, 1.08%, 05/10/48	USD		39,397	$	1,374,281
Core Industrial Trust, Series 2015-TEXW, Class XA, 0.90%, 02/10/34(b)			99,250		1,472,548
					2,846,829
Total Non-Agency Mortgage-Backed Securities — 15.1% (Cost: $1,113,922,750)					1,116,012,924
U.S. Government Sponsored Agency Securities — 19.0%
Collateralized Mortgage Obligations — 1.4%
Federal Home Loan Mortgage Corp.:
Series 1165, Class LD, 7.00%, 11/15/21			24		24,566
Series 3710, Class MG, 4.00%, 08/15/25(e)			928		983,190
Series 3959, Class MA, 4.50%, 11/15/41			2,215		2,366,325
Series 3986, Class M, 4.50%, 09/15/41			2,716		2,870,490
Series 4459, Class BN, 3.00%, 08/15/43			9,777		10,122,492
Series 4569, Class JA, 3.00%, 03/15/42			14,365		14,597,892
Federal Home Loan Mortgage Corp. Structured Agency Credit Risk Debt Notes(a):
Series 2017-DNA2, Class M1, (LIBOR USD 1 Month +1.20%), 3.22%, 10/25/29			15,969		16,021,196
Series 2017-HQA3, Class M1, (LIBOR USD 1 Month +0.55%), 2.57%, 04/25/30			384		383,863
Federal National Mortgage Association:
Series 2011-48, Class MG,
4.00%, 06/25/26(e)			1,667		1,773,207
Series 2011-84, Class MG, 4.00%, 09/25/26(e)			2,259		2,365,707
Series 2014-48, Class AB, 4.00%, 10/25/40			6,646		6,811,932
Federal National Mortgage Association Variable Rate Notes:
Series 1997-20, Class FB, 3.02%, 03/25/27(f)			95		95,291
Series 2017-C02, Class 2M1, (LIBOR USD 1 Month +1.15%), 3.17%, 09/25/29(a)			4,232		4,238,906
Series 2017-C04, Class 2M1, (LIBOR USD 1 Month +0.85%), 2.87%, 11/25/29(a)			6,051		6,053,518
Government National Mortgage Association:
Series 2013-131, Class PA, 3.50%, 06/16/42			5,215		5,332,073
Series 2018-36, Class AM, 3.00%, 07/20/45			26,540		27,181,416
					101,222,064
Commercial Mortgage-Backed Securities — 0.3%
Federal Home Loan Mortgage Corp., Series KJ05, Class A2, 2.16%, 10/25/21			11,543		11,574,622
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates, Series KIR2, Class A1, 2.75%, 03/25/27			7,584		7,792,520
					19,367,142
Interest Only Commercial Mortgage-Backed Securities — 0.0%(f)
Federal Home Loan Mortgage Corp. Multifamily Structured Pass-Through Certificates Variable Rate Notes, Series K718, Class X1, 0.73%, 01/25/22			11,796		141,486
Federal National Mortgage Association ACES Variable Rate Notes, Series 2013-M5, Class X2, 2.16%, 01/25/22			12,262		280,784
Government National Mortgage Association Variable Rate Notes, Series 2012-120, 0.78%, 02/16/53			24,879		1,218,996
					1,641,266
Mortgage-Backed Securities — 17.3%
Federal Home Loan Mortgage Corp.: 2.50%, 11/01/27			18,241		18,504,503

Security		Par (000)			Value
Mortgage-Backed Securities (continued)
4.00%, 02/01/34 - 03/01/34	USD		29,809		$	31,813,619
4.50%, 07/01/47 - 03/01/49			111,585			121,977,331
Federal Home Loan Mortgage Corp. Variable Rate Notes, (LIBOR USD 12 Month + 1.63%), 2.93%, 10/01/45(a)			5,279			5,353,295
Federal National Mortgage Association Variable Rate Notes(a):
(LIBOR USD 12 Month +1.59%), 2.86%, 09/01/45			10,234			10,402,199
(LIBOR USD 12 Month +1.59%), 2.90%, 11/01/45			796			808,147
(LIBOR USD 12 Month +1.59%), 3.15%, 06/01/45			11,476			11,727,891
(LIBOR USD 12 Month +1.73%), 3.32%, 09/01/42			7,742			7,948,853
Uniform Mortgage-Backed Securities:
2.50%, 12/01/27 - 04/01/32			52,976			53,534,446
2.50%, 10/25/34(g)			119,912			120,930,783
3.00%, 12/01/26 - 04/01/33			71,739			73,669,172
3.00%, 10/25/34(g)			32,874			33,603,392
3.50%, 04/01/34			4,475			4,718,480
4.00%, 04/01/26 - 05/01/34			141,581			148,918,249
4.00%, 10/25/34 - 11/25/49(g)			460,363			477,901,504
4.50%, 10/25/34(g)			10,490			10,809,112
4.50%, 03/01/47 - 06/01/49			139,953			151,281,764
5.00%, 04/01/21			—	(h)		393
5.50%, 06/01/20 - 10/01/21			136			138,756
6.50%, 04/01/21			12			12,386
						1,284,054,275
Total U.S. Government Sponsored Agency Securities — 19.0% (Cost: $1,395,967,564)						1,406,284,747
U.S. Treasury Obligations — 11.9%
U.S. Treasury Notes:
1.63%, 06/30/20			1,000			998,242
1.88%, 06/30/20			22,200			22,201,734
2.00%, 07/31/20			75,000			75,079,102
1.38%, 09/30/20			350,000			348,468,750
1.75%, 10/31/20			13,000			12,991,367
1.50%, 08/15/22 - 09/15/22			426,300			425,435,719
Total U.S. Treasury Obligations — 11.9% (Cost: $884,516,187)						885,174,914
Total Long-Term Investments — 105.7% (Cost: $7,769,257,535)						7,825,816,939
Short-Term Securities — 2.3%
Commercial Paper — 0.6%
VW Credit, Inc.: 3.02%, 10/25/19 - 11/06/19(b)(i)			43,000			42,915,601
Total Commercial Paper — 0.6% (Cost: $42,893,520)						42,915,601

90 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio (Percentages shown are based on Net Assets)

Security	Shares		Value
Money Market Funds — 0.6%(j)
BlackRock Liquidity Funds, T-Fund, Institutional Class, 1.87%*		47,697,236	$	47,697,236
JPMorgan U.S. Treasury Plus Money Market Fund, Agency Class, 1.77%		17,664		17,664
Total Money Market Funds — 0.6% (Cost: $47,714,900)				47,714,900
Total Repurchase Agreements — 1.1% (Cost: $80,000,000)				80,000,000
Total Short-Term Securities — 2.3% (Cost: $170,608,420)				170,630,501
Total Investments Before TBA Sale Commitments — 108.0% (Cost: $7,939,865,955)				7,996,447,440
	Par (000)
TBA Sale Commitments — (1.3)%
Mortgage-Backed Securities — (1.3)%
Uniform Mortgage-Backed Securities, 4.00%, 10/25/49(g)		92,763		(96,252,483)
Total TBA Sale Commitments — (1.3)% (Proceeds: $96,136,572)				(96,252,483)
Total Investments Net of TBA Sale Commitments — 106.7% (Cost: $7,843,729,383)				7,900,194,957
Liabilities in Excess of Other Assets — (6.7)%				(497,331,471)
Net Assets — 100.0%			$	7,402,863,486

^(a)  Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end.

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

^(c)  Variable or floating rate security, which interest rate adjusts periodically based on changes in current interest rates and prepayments on the underlying pool of assets. Rate shown is the rate in effect as of period end.

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

^(e)  Step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate as of period end.

^(f)  Variable rate security. Rate shown is the rate in effect as of period end.

^(g)  Represents or includes a TBA transaction.

^(h)  Amount is less than 500.

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

^(j)  Annualized 7-day yield as of period end.

* During the year ended September 30, 2019, investments in issuers considered to be an affiliate/affiliates of the Fund for purposes of Section 2(a)(3) of the Investment Company Act of 1940, as amended, and/or related parties of the Fund were as follows:

Affiliated Persons and/or Related Parties	Par/Shares Held at 09/30/18	Shares Purchased	Shares Sold		Par/Shares Held at 09/30/19		Value at 09/30/19		Income		Net Realized  Gain (Loss)	(a)		Change in Unrealized Appreciation (Depreciation	)
BlackRock Liquidity Funds, T-Fund, Institutional Class(b)	28,177,471	19,519,765	—		47,697,236	$	47,697,236	$	1,750,490	$	—		$	—
BlackRock Capital Finance LP, Series 1997-R2, Class AP	18,554	—	—		18,554		16,809		2,047		—			357
iShares Short Maturity Bond ETF	1,180,000	2,000,000	—		3,180,000		160,081,199		3,211,963		—			642,900
iShares Short-Term Corporate Bond ETF(c)	—	1,300,000	(1,300,000	)	—		—		177,919		337,126			—
						$	207,795,244	$	5,142,419	$	337,126		$	643,257

^(a)  Includes net capital gain distributions, if applicable.

^(b)  Represents net shares purchased (sold).

^(c)  As of period end, the entity is no longer held by the Fund.

For Fund compliance purposes, the Fund’s industry classifications refer to one or more of the industry sub-classifications used by one or more widely recognized market indexes or rating group indexes, and/or as defined by the investment adviser. These definitions may not apply for purposes of this report, which may combine such industry sub-classifications for reporting ease.

S C H E D U L E S   O F   I N V E S T M E N T S 91

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio     

Repurchase Agreements

Repurchase Agreements

Collateral

Counterparty

Coupon Rate

Purchase Date

Maturity Date

Par (000)

At Value (000)

Proceeds Including Interest

Position

Original Par

Position Received, At Value

Mizuho Securities USA LLC

2.65

%(a)

09/30/19

04/08/20

$

80,000

$

80,000

$    81,126,637

Corporate/Debt Obligations, 2.31% to 8.55%, due 05/01/24 to 01/25/49

$    103,857,731

$    91,081,104

^(a)  Variable rate security. Rate as of period end and maturity is the date the principal owed can be recovered through demand.

92 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio     

Derivative Financial Instruments Outstanding as of Period End

Futures Contracts

Description	Number of Contracts		Expiration Date		Notional Amount (000)		Value/ Unrealized Appreciation (Depreciation)
Long Contracts
U.S. Treasury 2 Year Note		11,182		12/31/19	$	2,409,721	$	(5,979,205)
Short Contracts
Euro-Bobl		881		12/06/19		130,257		918,375
Euro-Bund		18		12/06/19		3,419		33,914
Euro-Schatz		548		12/06/19		67,094		183,537
Canada 10 Year Bond		769		12/18/19		82,771		495,899
U.S. Treasury 10 Year Note		916		12/19/19		119,366		(214,116)
U.S. Treasury 10 Year Ultra Note		118		12/19/19		16,804		(153,572)
U.S. Treasury Long Bond		60		12/19/19		9,739		144,506
U.S. Treasury Ultra Bond		3		12/19/19		576		12,226
U.S. Treasury 5 Year Note		5,464		12/31/19		651,027		1,141,457
								2,562,226
							$	(3,416,979)

Forward Foreign Currency Exchange Contracts

Currency Purchased		Currency Sold		Counterparty	Settlement Date		Unrealized Appreciation (Depreciation)
USD	845,748	EUR	769,000	ANZ Banking Group Ltd.		10/03/19	$	7,513
USD	250,453,474	EUR	227,159,000	Bank of America NA		10/03/19		2,842,704
USD	6,100,764	EUR	5,518,000	Barclays Bank plc		10/03/19		85,963
USD	2,055,540	EUR	1,856,000	Commonwealth Bank of Australia		10/03/19		32,439
USD	2,953,845	EUR	2,665,000	Goldman Sachs International		10/03/19		48,907
USD	534,739	EUR	487,000	Goldman Sachs International		11/05/19		2,474
CAD	24,627,340	AUD	27,250,000	State Street Bank and Trust Co.		12/18/19		175,256
								3,195,256
USD	852,127	AUD	1,263,000	State Street Bank and Trust Co.		10/03/19		(367)
USD	76,862,471	CAD	102,141,000	Bank of America NA		10/03/19		(235,135)
USD	929,129	GBP	761,000	State Street Bank and Trust Co.		10/03/19		(6,598)
AUD	27,250,000	CAD	24,817,044	BNP Paribas SA		12/18/19		(318,634)
								(560,734)
Net Unrealized Appreciation							$	2,634,522

Centrally Cleared Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency		Termination Date	Notional Amount (000)		Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
CDX.NA.IG.33.V1		1.00	%		Quarterly	12/20/24	USD	94,700	$	(1,911,572	)	$	(1,974,582	)	$	63,010
ITRAXX.EUR.Main.32.V1		1.00	%		Quarterly	12/20/24	EUR	12,175		(313,316	)		(320,680	)		7,364
									$	(2,224,888	)	$	(2,295,262	)	$	70,374

S C H E D U L E S   O F   I N V E S T M E N T S 93

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio

Centrally Cleared Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund		Payment Frequency	Termination Date	Credit Rating	(a)		Notional Amount (000)	(b)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
CDX.NA.IG.32.V1	1.00	%	Quarterly	06/20/24	A		USD	68,000		$	1,473,870	$	1,509,258	$	(35,388)
CDX.NA.HY.33.V1	5.00	%	Quarterly	12/20/24	B		USD	52,000			3,567,448		3,437,420		130,028
										$	5,041,318	$	4,946,678	$	94,640

^(a) Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b) The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

Centrally Cleared Interest Rate Swaps

Paid by the Fund		Received by the Fund
Rate	Frequency	Rate	Frequency	Termination Date		Notional       Amount (000)		Value	Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
3 month BA	Semi-Annual	1.64%	Semi-Annual		08/19/21	CAD	244,230	$(844,515)	$	(14,573)	$	(829,942)
1.55%	Semi-Annual	3 month LIBOR	Quarterly		08/21/21	USD	182,540	486,964		10,373		476,591
								$      (357,551)	$	(4,200)	$	(353,351)

OTC Credit Default Swaps — Buy Protection

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency	Counterparty	Termination Date	Notional       Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/20	USD	2,086	$	(10,894)	$	3,388	$	(14,282)
United Mexican States		1.00	%	Quarterly	Bank of America NA	09/20/20	USD	2,086		(13,338)		6,065		(19,403)
BAT International Finance plc		1.00	%	Quarterly	JPMorgan Chase Bank NA	12/20/23	EUR	4,874		(80,635)		(2,265)		(78,370)
BAT International Finance plc		1.00	%	Quarterly	JPMorgan Chase Bank NA	12/20/23	EUR	3,249		(53,751)		(1,519)		(52,232)
BAT International Finance plc		1.00	%	Quarterly	JPMorgan Chase Bank NA	12/20/23	EUR	3,249		(53,752)		(10,666)		(43,086)
Allstate Corp. (The)		1.00	%	Quarterly	Morgan Stanley &Co. International plc	06/20/24	USD	7,000		(253,591)		(247,990)		(5,601)
American International Group, Inc.		1.00	%	Quarterly	Morgan Stanley &Co. International plc	06/20/24	USD	7,000		(97,656)		(106,565)		8,909
Apache Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,239		64,624		111,039		(46,415)
Apache Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,239		64,623		108,408		(43,785)
Apache Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,239		64,624		101,810		(37,186)
Apache Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	6,283		125,371		187,235		(61,864)
CBS Corp.		1.00	%	Quarterly	Goldman Sachs Bank USA	06/20/24	USD	10,000		(177,610)		(69,063)		(108,547)
ConocoPhillips		1.00	%	Quarterly	Morgan Stanley &Co. International plc	06/20/24	USD	7,000		(166,835)		(165,095)		(1,740)
Devon Energy Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,242		(11,168)		35,501		(46,669)
Devon Energy Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,242		(11,168)		24,301		(35,469)
Devon Energy Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,242		(11,168)		18,610		(29,778)
Devon Energy Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,242		(11,168)		29,887		(41,055)
Halliburton Co.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	7,000		(64,800)		(90,433)		25,633
Halliburton Co.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,468		(32,101)		(20,112)		(11,989)
Halliburton Co.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	1,734		(16,051)		(9,266)		(6,785)
Halliburton Co.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	1,734		(16,051)		(9,280)		(6,771)
Halliburton Co.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,468		(32,101)		(15,402)		(16,699)
Halliburton Co.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	3,468		(32,100)		(18,509)		(13,591)
Hess Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	2,420		18,270		54,580		(36,310)
Hess Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	2,420		18,270		42,391		(24,121)
Hess Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	2,420		18,270		57,598		(39,328)
Hess Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24	USD	2,420		18,270		59,679		(41,409)
Kinder Morgan, Inc.		1.00	%	Quarterly	Morgan Stanley & Co. International plc	06/20/24	USD	7,000		(112,870)		(97,734)		(15,136)
Kraft Heinz Foods Co.		1.00	%	Quarterly	BNP Paribas SA	06/20/24	USD	3,441		(7,135)		58,080		(65,215)
Kraft Heinz Foods Co.		1.00	%	Quarterly	BNP Paribas SA	06/20/24	USD	689		(1,428)		11,003		(12,431)
Lowe’s Cos., Inc.		1.00	%	Quarterly	Morgan Stanley & Co. International plc	06/20/24	USD	7,000		(223,392)		(186,302)		(37,090)
Mondelez International, Inc.		1.00	%	Quarterly	Morgan Stanley & Co. International plc	06/20/24	USD	7,000		(196,140)		(179,542)		(16,598)

94 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio

OTC Credit Default Swaps — Buy Protection (continued)

Reference Obligation/Index	Financing Rate Paid by the Fund			Payment Frequency	Counterparty		Termination Date	Notional       Amount (000)		Value		Upfront Premium Paid (Received)		Unrealized Appreciation (Depreciation)
Northrop Grumman Systems Corp.		1.00	%	Quarterly		Morgan Stanley & Co. International plc	06/20/24	USD	7,000	$	(255,049)	$	(241,125)	$	(13,924)
Pfizer, Inc.		1.00	%	Quarterly		Morgan Stanley & Co. International plc	06/20/24	USD	7,000		(235,493)		(224,823)		(10,670)
TWDC Enterprises 18 Corp.		1.00	%	Quarterly		BNP Paribas SA	06/20/24	USD	2,858		(103,223)		(104,550)		1,327
TWDC Enterprises 18 Corp.		1.00	%	Quarterly		BNP Paribas SA	06/20/24	USD	3,355		(121,176)		(120,000)		(1,176)
Financial Guaranty Insurance Company		1.00	%	Quarterly		JPMorgan Chase Bank NA	12/20/24	USD	1,500		45,822		48,061		(2,239)
People’s Republic of China		1.00	%	Quarterly		Bank of America NA	12/20/24	USD	34,342		(897,718)		(920,940)		23,222
										$	(2,861,418)	$	(1,883,545)	$	(977,873)

OTC Credit Default Swaps — Sell Protection

Reference Obligation/Index	Financing Rate Received by the Fund			Payment Frequency	Counterparty	Termination Date	Credit Rating (a)		Notional Amount (000) (b)			Value			Upfront Premium Paid (Received)			Unrealized Appreciation (Depreciation)
United Mexican States		1.00	%	Quarterly	Bank of America NA	06/20/20		BBB+		USD	2,086	$	10,894		$	(3,817	)	$	14,711
United Mexican States		1.00	%	Quarterly	JPMorgan Chase Bank NA	09/20/20		BBB+		USD	2,086		13,338			(5,397	)		18,735
21st Century Fox America, Inc.		1.00	%	Quarterly	BNP Paribas SA	06/20/24		A		USD	3,302		117,229			104,407			12,822
21st Century Fox America, Inc.		1.00	%	Quarterly	BNP Paribas SA	06/20/24		A		USD	2,911		103,356			97,111			6,245
Anadarko Petroleum Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24		BBB		USD	5,228		25,676			115,313			(89,637	)
Anadarko Petroleum Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24		BBB		USD	1,743		8,559			34,481			(25,922	)
Anadarko Petroleum Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24		BBB		USD	6,970		34,235			138,420			(104,185	)
Anadarko Petroleum Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24		BBB		USD	6,059		29,756			120,482			(90,726	)
Financial Guaranty
Insurance Company		1.00	%	Quarterly	Citibank NA	06/20/24		BBB-		USD	15,005		(842,169	)		(1,085,499	)		243,330
International Business Machines Corp.		1.00	%	Quarterly	JPMorgan Chase Bank NA	06/20/24		A		USD	20,000		541,158			511,874			29,284
												$	42,032		$	27,375		$	14,657

^(a) Using the rating of the issuer or the underlying securities of the index, as applicable, provided by S&P Global Ratings.

^(b) The maximum potential amount the Fund may pay should a negative credit event take place as defined under the terms of the agreement.

The following reference rates, and their values as of period end, are used for security descriptions:

Reference Index		Reference Rate
3 month BA	Canadian Bankers Acceptances	1.97%
3 month LIBOR	London Interbank Offered Rate	2.09%

S C H E D U L E S   O F   I N V E S T M E N T S 95

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio

Balances Reported in the Statements of Assets and Liabilities for Centrally Cleared Swaps and OTC Swaps

	Swap Premiums Paid		Swap Premiums Received			Unrealized Appreciation		Unrealized Depreciation
Centrally Cleared Swaps(a)	$	4,957,051	$	(2,309,835	)	$	676,993	$	(865,330)
OTC Swaps		2,079,724		(3,935,894)			384,218		(1,347,434)

^(a)  Includes cumulative appreciation (depreciation) on centrally cleared swaps, as reported in the Schedule of Investments. Only current day’s variation margin is reported within the Statements of Assets and Liabilities and is net of any previously paid (received) swap premium amounts.

Derivative Financial Instruments Categorized by Risk Exposure

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

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Assets — Derivative Financial Instruments
Futures contracts
Unrealized appreciation on futures contracts(a)	$	—	$	—	$	—	$	—	$	2,929,914	$	—	$	2,929,914
Forward foreign currency exchange contracts
Unrealized appreciation on forward foreign currency exchange contracts		—		—		—		3,195,256		—		—		3,195,256
Swaps — centrally cleared
Unrealized appreciation on centrally cleared swaps(a)		—		200,402		—		—		476,591		—		676,993
Swaps — OTC
Unrealized appreciation on OTC swaps; Swap premiums paid		—		2,463,942		—		—		—		—		2,463,942
	$	—	$	2,664,344	$	—	$	3,195,256	$	3,406,505	$	—	$	9,266,105
Liabilities — Derivative Financial Instruments
Futures contracts
Unrealized depreciation on futures contracts(a)		—		—		—		—		6,346,893		—		6,346,893
Forward foreign currency exchange contracts
Unrealized depreciation on forward foreign currency exchange contracts		—		—		—		560,734		—		—		560,734
Swaps — centrally cleared
Unrealized depreciation on centrally cleared swaps(a)		—		35,388		—		—		829,942		—		865,330
Swaps — OTC
Unrealized depreciation on OTC swaps; Swap premiums received		—		5,283,328		—		—		—		—		5,283,328
	$	—	$	5,318,716	$	—	$	560,734	$	7,176,835	$	—	$	13,056,285

^(a)  Net cumulative unrealized appreciation (depreciation) on futures contracts and centrally cleared swaps, if any, are reported in the Schedule of Investments. In the Statements of Assets and Liabilities, only current day’s variation margin is reported in receivables or payables and the net cumulative unrealized appreciation (depreciation) is included in accumulated earnings (loss).

For the year ended September 30, 2019, the effect of derivative financial instruments in the Statements of Operations were as follows:

	Commodity Contracts		Credit Contracts			Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts			Other Contracts			Total
Net Realized Gain (Loss) from:
Futures contracts	$	—	$	—		$	—	$	—	$	(11,798,464	)	$	—		$	(11,798,464	)
Forward foreign currency exchange contracts		—		—			—		6,793,402		—			—			6,793,402
Options purchased(a)		—		(91,875	)		—		—		(5,355,047	)		—			(5,446,922	)
Options written		—		(49,125	)		—		—		(2,020,354	)		—			(2,069,479	)
Swaps		—		3,498,848			—		—		458,275			(439,764	)		3,517,359
	$	—	$	3,357,848		$	—	$	6,793,402	$	(18,715,590	)	$	(439,764	)	$	(9,004,104	)

96 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio     

	Commodity Contracts		Credit Contracts		Equity Contracts		Foreign Currency Exchange Contracts		Interest Rate Contracts		Other Contracts		Total
Net Change in Unrealized Appreciation (Depreciation) on:
Futures contracts		—		—		—		—		(3,777,792)		—		(3,777,792)
Forward foreign currency exchange contracts		—		—		—		2,206,972		—		—		2,206,972
Options purchased(b)		—		—		—		—		683,211		—		683,211
Options written		—		—		—		—		(6,688,092)		—		(6,688,092)
Swaps		—		(960,403)		—		—		5,389,337		—		4,428,934
	$	—	$	(960,403)	$	—	$	2,206,972	$	(4,393,336)	$	—	$	(3,146,767)

^(a)  Options purchased are included in net realized gain (loss) from investments — unaffiliated.

^(b)  Options purchased are included in net change in unrealized appreciation (depreciation) on investments — unaffiliated.

Average Quarterly Balances of Outstanding Derivative Financial Instruments

Futures contracts:
Average notional value of contracts — long	$	2,749,669,982
Average notional value of contracts — short		870,958,637
Forward foreign currency exchange contracts:
Average amounts purchased — in USD		274,261,801
Average amounts sold — in USD		67,337,970
Options:
Average notional value of swaption contracts purchased		678,242,250
Average notional value of swaption contracts written		1,568,935,000
Credit default swaps:
Average notional value — buy protection		160,360,155
Average notional value — sell protection		162,733,223
Interest rate swaps:
Average notional value — pays fixed rate		447,192,000
Average notional value — receives fixed rate		308,883,201
Inflation swaps:
Average notional value — pays fixed rate		15,388,575

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

Derivative Financial Instruments — Offsetting as of Period End

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

	Assets		Liabilities
Derivative Financial Instruments:
Futures contracts	$	553,796	$	401,344
Forward foreign currency exchange contracts		3,195,256		560,734
Swaps — Centrally cleared		48,432		—
Swaps — OTC(a)		2,463,942		5,283,328
Total derivative assets and liabilities in the Statements of Assets and Liabilities	$	6,261,426	$	6,245,406
Derivatives not subject to a Master Netting Agreement or similar agreement (“MNA”)		(602,228)		(401,344)
Total derivative assets and liabilities subject to an MNA	$	5,659,198	$	5,844,062

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

S C H E D U L E S   O F   I N V E S T M E N T S 97

Schedule of Investments  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio

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

Counterparty	Derivative Assets Subject to an MNA by Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Received		Cash Collateral Received		Net Amount of Derivative Assets (b)(c)
ANZ Banking Group Ltd.	$	7,513	$	—	$	—	$	—	$	7,513
Bank of America NA		2,886,702		(1,179,295)		—		—		1,707,407
Barclays Bank plc		85,963		—		—		—		85,963
BNP Paribas SA		290,995		(290,995)		—		—		—
Citibank NA		243,330		(243,330)		—		—		—
Commonwealth Bank of Australia		32,439		—		—		—		32,439
Goldman Sachs International		51,381		—		—		—		51,381
JPMorgan Chase Bank NA		1,876,710		(1,222,752)		—		(570,000)		83,958
Morgan Stanley & Co. International plc		8,909		(8,909)		—		—		—
State Street Bank and Trust Co.		175,256		(6,965)		—		—		168,291
	$	5,659,198	$	(2,952,246)	$	—	$	(570,000)	$	2,136,952

Counterparty	Derivative Liabilities Subject to an MNA by Counterparty		Derivatives Available for Offset (a)		Non-cash Collateral Pledged		Cash Collateral Pledged (d)		Net Amount of Derivative Liabilities (c)(e)
Bank of America NA	$	1,179,295	$	(1,179,295)	$	—	$	—	$	—
BNP Paribas SA		622,006		(290,995)		—		—		331,011
Citibank NA		1,085,499		(243,330)		—		(842,169)		—
Goldman Sachs Bank USA		177,610		—		—		—		177,610
JPMorgan Chase Bank NA		1,222,752		(1,222,752)		—		—		—
Morgan Stanley & Co. International plc		1,549,935		(8,909)		—		(1,541,026)		—
State Street Bank and Trust Co.		6,965		(6,965)		—		—		—
	$	5,844,062	$	(2,952,246)	$	—	$	(2,383,195)	$	508,621

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

^(b)  Net amount represents the net amount receivable from the counterparty in the event of default.

^(c)  Net amount may also include forward foreign currency exchange contracts that are not required to be collateralized.

^(d)  Excess of collateral pledged to the individual counterparty is not shown for financial reporting purposes.

^(e)  Net amount represents the net amount payable due to the counterparty in the event of default.

98 2 0 1 9   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  (continued) September 30, 2019 BlackRock Low Duration Bond Portfolio

Fair Value Hierarchy as of Period End

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

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

	Level 1			Level 2			Level 3		Total
Assets:
Investments:
Long-Term Investments:
Asset-Backed Securities	$	—		$	1,612,699,853		$	7,587,900	$	1,620,287,753
Corporate Bonds(a)		—			2,503,455,112			—		2,503,455,112
Foreign Agency Obligations(a)		—			21,054,014			—		21,054,014
Foreign Government Obligations(a)		—			90,453,633			—		90,453,633
Investment Companies		160,081,199			—			—		160,081,199
Municipal Bonds		—			23,012,643			—		23,012,643
Non-Agency Mortgage-Backed Securities		—			1,116,012,924			—		1,116,012,924
U.S. Government Sponsored Agency Securities		—			1,406,284,747			—		1,406,284,747
U.S. Treasury Obligations		—			885,174,914			—		885,174,914
Short-Term Securities:
Commercial Paper		—			42,915,601			—		42,915,601
Money Market Funds		47,714,900			—			—		47,714,900
Repurchase Agreements		—			80,000,000			—		80,000,000
Liabilities:
Investments:
TBA Sale Commitments		—			(96,252,483	)		—		(96,252,483	)
	$	207,796,099		$	7,684,810,958		$	7,587,900	$	7,900,194,957
Derivative Financial Instruments(b)
Assets:
Credit contracts	$	—		$	584,620		$	—	$	584,620
Foreign currency exchange contracts		—			3,195,256			—		3,195,256
Interest rate contracts		2,929,914			476,591			—		3,406,505
Liabilities:
Credit contracts		—			(1,382,822	)		—		(1,382,822	)
Foreign currency exchange contracts		—			(560,734	)		—		(560,734	)
Interest rate contracts		(6,346,893	)		(829,942	)		—		(7,176,835	)
	$	(3,416,979	)	$	1,482,969		$	—	$	(1,934,010	)

^(a)  See above Schedule of Investments for values in each industry or country.

^(b)  Derivative financial instruments are swaps, futures contracts and forward foreign currency exchange contracts. Swaps, futures contracts and forward foreign currency exchange contracts are valued at the unrealized appreciation (depreciation) on the instrument.

See notes to financial statements.

S C H E D U L E S   O F   I N V E S T M E N T S 99

Statements of Assets and Liabilities

September 30, 2019

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio (a)		BlackRock Low Duration Bond Portfolio
ASSETS
Investments at value — unaffiliated (b)(c)	$	4,115,837,150	$	16,579,705,806	$	7,708,652,196
Investments at value — affiliated (d)		45,790,217		681,285,736		207,795,244
Cash		653,996		5,718,157		12,574
Cash pledged:
Collateral — OTC derivatives		870,000		6,320,000		3,770,000
Collateral — TBA commitments		—		—		1,234,343
Futures contracts		5,330,520		252,950		7,882,000
Centrally cleared swaps		4,565,778		—		4,814,000
Foreign currency at value (e)		6,634,830		9,046,350		6,926,004
Repurchase agreements at value — unaffiliated (f)		—		—		80,000,000
Receivables:
Investments sold		371,064,015		95,241,517		254,086,411
Securities lending income — affiliated		—		21,321		—
Swaps		6,421		—		—
TBA sale commitments		306,733,181		—		96,136,572
Capital shares sold		6,260,070		80,298,819		18,857,582
Dividends — affiliated		113,328		674,427		507,559
Dividends — unaffiliated		583		570,787		218,801
Interest — unaffiliated		22,776,869		246,117,408		32,098,126
From the Manager		173,923		—		211,140
Variation margin on futures contracts		227,028		10,411		553,796
Variation margin on centrally cleared swaps		21,557		—		48,432
Swap premiums paid		256,611		303,790		2,079,724
Unrealized appreciation on:
Forward foreign currency exchange contracts		6,644,057		4,958,542		3,195,256
OTC swaps		694,262		2,058,778		384,218
Prepaid expenses		128,757		508,803		147,179
Other assets		—		43,311		—
Total assets		4,894,783,153		17,713,136,913		8,429,611,157
LIABILITIES
Cash received:
Collateral — OTC derivatives		260,000		—		570,000
Collateral — TBA commitments		102,732		—		—
Cash collateral on securities loaned at value		—		6,668,116		—
TBA sale commitments at value (g)		307,011,559		—		96,252,483
Payables:
Investments purchased		1,223,882,538		359,035,735		901,199,964
Accounting services fees		60,227		195,299		95,459
Administration fees		103,101		732,354		213,868
Board realignment and consolidation		137,344		907,907		—
Capital shares redeemed		5,609,189		101,734,492		16,490,554
Custodian fees		85,373		144,577		57,291
Income dividend distributions		1,425,847		10,113,357		1,916,488
Investment advisory fees		873,828		5,533,220		1,668,216
Trustees’ and Officer’s fees		3,500		39,439		14,569
Other affiliates		6,285		95,743		—
Printing fees		25,878		254,176		44,847
Professional fees		150,497		203,296		99,565
Registration fees		69,299		372,544		127,254
Service and distribution fees		153,000		616,417		411,984
Transfer agent fees		508,464		3,780,044		1,248,570
Other accrued expenses		89,652		290,923		91,153
Variation margin on futures contracts		60,339		5,939		401,344
Swap premiums received		468,371		5,964,987		3,935,894
Unrealized depreciation on:
Forward foreign currency exchange contracts		3,359,955		716,349		560,734
OTC swaps		504,604		4,615,913		1,347,434
Total liabilities		1,544,951,582		502,020,827		1,026,747,671
NET ASSETS	$	3,349,831,571	$	17,211,116,086	$	7,402,863,486

100 2 0 1 9    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

Statements of Assets and Liabilities   (continued)

September 30, 2019

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio (a)			BlackRock Low Duration Bond Portfolio
NET ASSETS CONSIST OF
Paid-in capital	$	3,260,689,904	$	17,814,999,257		$	7,429,741,063
Accumulated earnings (loss)		89,141,667		(603,883,171	)		(26,877,577	)
NET ASSETS	$	3,349,831,571	$	17,211,116,086		$	7,402,863,486
(a) Consolidated Statement of Assets and Liabilities.
(b) Investments at cost — unaffiliated	$	4,004,981,063	$	16,281,135,549		$	7,652,711,970
(c)  Securities loaned at value	$	—	$	5,571,323		$	—
(d) Investments at cost — affiliated	$	45,790,217	$	680,512,079		$	207,153,985
(e) Foreign currency at cost	$	6,665,549	$	9,052,441		$	7,041,509
(f)  Repurchase agreements at cost — unaffiliated	$	—	$	—		$	80,000,000
(g) Proceeds from TBA sale commitments	$	306,733,181	$	—		$	96,136,572

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 101

Statements of Assets and Liabilities  (continued)

September 30, 2019

	BlackRock Core Bond Portfolio		BlackRock High Yield Bond Portfolio (a)		BlackRock Low Duration Bond Portfolio
NET ASSET VALUE
Institutional
Net assets	$	1,935,102,019	$	10,693,109,753	$	5,374,564,103
Share outstanding (h)		195,108,543		1,392,589,495		557,669,397
Net asset value	$	9.92	$	7.68	$	9.64
Service
Net assets	$	40,194,603	$	154,657,603	$	30,950,198
Share outstanding (h)		4,051,548		20,131,196		3,212,961
Net asset value	$	9.92	$	7.68	$	9.63
Investor A
Net assets	$	492,425,566	$	1,329,155,994	$	1,318,473,382
Share outstanding (h)		49,576,969		173,155,748		136,847,847
Net asset value	$	9.93	$	7.68	$	9.63
Investor A1
Net assets	$	—	$	—	$	8,621,142
Share outstanding (h)		—		—		894,091
Net asset value	$	—	$	—	$	9.64
Investor C
Net assets	$	49,847,515	$	262,203,982	$	152,889,980
Share outstanding (h)		5,039,887		34,109,392		15,876,251
Net asset value	$	9.89	$	7.69	$	9.63
Investor C1
Net assets	$	—	$	1,339,347	$	—
Share outstanding (h)		—		174,147		—
Net asset value	$	—	$	7.69	$	—
Investor C2
Net assets	$	—	$	—	$	13,073
Share outstanding (h)		—		—		1,357
Net asset value	$	—	$	—	$	9.63
Investor C3
Net assets	$	—	$	—	$	462,591
Share outstanding (h)		—		—		48,047
Net asset value	$	—	$	—	$	9.63
Class K
Net assets	$	829,549,379	$	4,644,939,263	$	512,940,148
Share outstanding (h)		83,389,972		604,502,347		53,272,337
Net asset value	$	9.95	$	7.68	$	9.63
Class R
Net assets	$	2,712,489	$	125,710,144	$	3,948,869
Share outstanding (h)		272,970		16,374,247		409,989
Net asset value	$	9.94	$	7.68	$	9.63

^(h)  Unlimited number of shares authorized, $0.001 par value.

See notes to financial statements.

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Statements of Operations

Year Ended September 30, 2019

	BlackRock Core Bond Portfolio			BlackRock High Yield Bond Portfolio (a)			BlackRock Low Duration Bond Portfolio
INVESTMENT INCOME
Dividends — affiliated	$	698,532		$	13,032,266		$	5,140,372
Dividends — unaffiliated		7,287			11,597,440			25,673
Interest — affiliated		—			—			2,047
Interest — unaffiliated		106,758,218			991,430,311			192,333,326
Securities lending income — affiliated — net		—			382,233			—
Foreign taxes withheld		(83,793	)		(5,704	)		—
Total investment income		107,380,244			1,016,436,546			197,501,418
EXPENSES
Investment advisory		10,536,998			64,463,253			18,784,341
Transfer agent — class specific		2,646,442			14,519,181			6,128,757
Service and distribution — class specific		1,769,759			7,077,599			5,046,768
Administration		1,174,490			5,215,946			2,328,199
Administration — class specific		621,083			3,135,405			1,317,249
Accounting services		231,645			822,355			368,261
Registration		199,427			818,939			563,463
Custodian		126,976			237,222			80,791
Professional		110,069			292,967			126,636
Board realignment and consolidation		95,572			499,201			235,491
Trustees and Officer		39,045			174,415			78,182
Printing		24,341			236,230			162,090
Recoupment of past waived and/or reimbursed fees — class specific		—			6,708			—
Miscellaneous		122,053			197,763			179,346
Total expenses excluding interest expense		17,697,900			97,697,184			35,399,574
Interest expense		2,549,230			423,214			94
Total expenses		20,247,130			98,120,398			35,399,668
Less:
Transfer agent fees waived and/or reimbursed — class specific		(1,471,312	)		(67,703	)		(2,280,303	)
Fees waived and/or reimbursed by the Manager		(757,748	)		(638,107	)		(636,895	)
Administration fees waived — class specific		(621,083	)		(158,230	)		(1,278,521	)
Total expenses after fees waived and/or reimbursed		17,396,987			97,256,358			31,203,949
Net investment income	$	89,983,257		$	919,180,188		$	166,297,469

F I N A N C I A L    S T A T E M E N T S 103

Statements of Operations  (continued)

Year Ended September 30, 2019

	BlackRock Core Bond Portfolio			BlackRock High Yield Bond Portfolio (a)			BlackRock Low Duration Bond Portfolio
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) from:
Investments — affiliated	$	—		$	(1,516,254	)	$	337,126
Investments — unaffiliated		45,684,999			(348,062,977	)		11,234,506
Forward foreign currency exchange contracts		(1,729,114	)		56,570,364			6,793,402
Foreign currency transactions		732,119			(1,899,048	)		570,072
Futures contracts		10,068,040			(8,888,014	)		(11,798,464	)
Options written		987,030			10,468,050			(2,069,479	)
Payment by affiliate		—			—			7,407	(b)
In-kind redemptions		—			(6,621,345	)(c)		—
Swaps		(952,921	)		10,555,914			3,517,359
		54,790,153			(289,393,310	)		8,591,929
Net change in unrealized appreciation (depreciation) on:
Investments — affiliated		—			770,889			643,257
Investments — unaffiliated		161,788,460			318,996,286			116,753,566
Forward foreign currency exchange contracts		(52,595	)		1,138,865			2,206,972
Foreign currency translations		31,663			(1,028,661	)		(84,237	)
Futures contracts		4,605,290			(704,691	)		(3,777,792	)
Options written		(57,715	)		—			(6,688,092	)
Swaps		(269,329	)		(11,618,050	)		4,428,934
Unfunded floating rate loan interests		—			(7,631	)		—
		166,045,774			307,547,007			113,482,608
Net realized and unrealized gain		220,835,927			18,153,697			122,074,537
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	310,819,184		$	937,333,885		$	288,372,006

^(a)  Consolidated Statement of Operations.

^(b)  Includes a payment by an affiliate of $7,407 to compensate for a trade operating error.

^(c)  See Note 2 of the Notes to Financial Statements.

See notes to financial statements.

104 2 0 1 9    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

Statements of Changes in Net Assets

	BlackRock Core Bond Portfolio
	Year Ended September 30,
	2019			2018
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	89,983,257		$	79,371,813
Net realized gain (loss)		54,790,153			(43,337,388	)
Net change in unrealized appreciation (depreciation)		166,045,774			(84,829,163	)
Net increase (decrease) in net assets resulting from operations		310,819,184			(48,794,738	)
DISTRIBUTIONS TO SHAREHOLDERS (a)(b)
Institutional		(54,866,553	)		(49,176,129	)
Service		(1,140,698	)		(1,313,225	)
Investor A		(12,439,292	)		(11,068,762	)
Investor C		(1,075,593	)		(1,076,563	)
Class K		(22,749,446	)		(20,266,346	)
Class R		(69,151	)		(69,177	)
Decrease in net assets resulting from distributions to shareholders		(92,340,733	)		(82,970,202	)
CAPITAL SHARE TRANSACTIONS
Net increase in net assets derived from capital share transactions		126,135,356			3,157,226
NET ASSETS (b)
Total increase (decrease) in net assets		344,613,807			(128,607,714	)
Beginning of year		3,005,217,764			3,133,825,478
End of year	$	3,349,831,571		$	3,005,217,764

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

^(b)  Prior year distribution character information and distributions in excess of net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information.

See notes to financial statements.

F I N A N C I A L    S T A T E M E N T S 105

Statements of Changes in Net Assets  (continued)

	BlackRock High Yield Bond Portfolio (a)						BlackRock Low Duration Bond Portfolio
	Year Ended September 30,						Year Ended September 30,
	2019			2018			2019			2018
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS
Net investment income	$	919,180,188		$	872,463,488		$	166,297,469		$	116,564,645
Net realized gain (loss)		(289,393,310	)		114,756,370			8,591,929			(27,184,611	)
Net change in unrealized appreciation (depreciation)		307,547,007			(452,252,714	)		113,482,608			(55,762,909	)
Net increase in net assets resulting from operations		937,333,885			534,967,144			288,372,006			33,617,125
DISTRIBUTIONS TO SHAREHOLDERS (b)(c)
From net investment income:
Institutional		(580,933,412	)		(531,199,992	)		(124,569,486	)		(81,907,734	)
Service		(9,749,405	)		(11,541,240	)		(777,510	)		(610,577	)
Investor A		(72,925,661	)		(78,539,545	)		(31,842,725	)		(24,927,180	)
Investor A1		—			—			(237,126	)		(203,510	)
Investor B		—			(2,353	)		—			—
Investor B1		—			(3,549	)		—			—
Investor C		(14,058,610	)		(17,220,416	)		(2,783,764	)		(2,339,410	)
Investor C1		(121,119	)		(533,144	)		—			—
Investor C2		—			—			(3,312	)		(12,375	)
Investor C3		—			—			(12,932	)		(23,728	)
Class K		(250,925,461	)		(270,216,627	)		(10,204,261	)		(4,580,840	)
Class R		(6,710,371	)		(6,686,249	)		(83,184	)		(78,663	)
From return of capital:
Institutional		—			—			(2,335,509	)		(7,528,485	)
Service		—			—			(14,577	)		(64,339	)
Investor A		—			—			(597,009	)		(2,610,782	)
Investor A1		—			—			(4,446	)		(19,768	)
Investor C		—			—			(52,192	)		(406,288	)
Investor C2		—			—			(62	)		(1,416	)
Investor C3		—			—			(242	)		(3,788	)
Class K		—			—			(191,316	)		(410,717	)
Class R		—			—			(1,560	)		(9,502	)
Decrease in net assets resulting from distributions to shareholders		(935,424,039	)		(915,943,115	)		(173,711,213	)		(125,739,102	)
CAPITAL SHARE TRANSACTIONS
Net increase (decrease) in net assets derived from capital share transactions		1,246,394,497			(1,215,307,142	)		1,270,043,891			1,243,421,397
NET ASSETS (c)
Total increase (decrease) in net assets		1,248,304,343			(1,596,283,113	)		1,384,704,684			1,151,299,420
Beginning of year		15,962,811,743			17,559,094,856			6,018,158,802			4,866,859,382
End of year	$	17,211,116,086		$	15,962,811,743		$	7,402,863,486		$	6,018,158,802

^(a)  Consolidated Statements of Changes in Net Assets.

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

^(c)  Prior year distribution character information and undistributed (distributions in excess of) net investment income has been modified or removed to conform with current year Regulation S-X presentation changes. Refer to Note 12 for this prior year information.

See notes to financial statements.

106 2 0 1 9    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

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Institutional
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.25		$	9.65		$	9.86		$	9.65		$	9.63
Net investment income (a)		0.28			0.25			0.23			0.21			0.21
Net realized and unrealized gain (loss)		0.68			(0.39	)		(0.19	)		0.24			0.05
Net increase (decrease) from investment operations		0.96			(0.14	)		0.04			0.45			0.26
Distributions from net investment income (b)		(0.29	)		(0.26	)		(0.25	)		(0.24	)		(0.24	)
Net asset value, end of year	$	9.92		$	9.25		$	9.65		$	9.86		$	9.65
Total Return (c)
Based on net asset value		10.52%			(1.50)%			0.46%			4.78%			2.66%
Ratios to Average Net Assets
Total expenses		0.60%			0.62%			0.66%			0.62%			0.60%(d)
Total expenses after fees waived and/or reimbursed		0.51%			0.54%			0.52%			0.50%			0.46%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.43%			0.44%			0.43%			0.45%			0.46%
Net investment income		2.94%			2.61%			2.36%			2.16%			2.15%
Supplemental Data
Net assets, end of year (000)	$	1,935,102		$	1,762,677		$	1,778,980		$	1,853,077		$	1,774,919
Portfolio turnover rate (e)		684%			658%			712%			594%			863%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (e)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		481%			455%			493%			422%			616%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 107

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Service
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.25		$	9.65		$	9.86		$	9.66		$	9.63
Net investment income (a)		0.26			0.22			0.20			0.18			0.18
Net realized and unrealized gain (loss)		0.67			(0.39	)		(0.18	)		0.23			0.05
Net increase (decrease) from investment operations		0.93			(0.17	)		0.02			0.41			0.23
Distributions from net investment income (b)		(0.26	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)
Net asset value, end of year	$	9.92		$	9.25		$	9.65		$	9.86		$	9.66
Total Return (c)
Based on net asset value		10.24%			(1.74)%			0.20%			4.32%			2.44%
Ratios to Average Net Assets
Total expenses (d)		0.94%			0.98%			0.92%			0.87%			0.90%
Total expenses after fees waived and/or reimbursed		0.76%			0.79%			0.78%			0.84%			0.80%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.68%			0.69%			0.68%			0.79%			0.80%
Net investment income		2.70%			2.36%			2.11%			1.81%			1.86%
Supplemental Data
Net assets, end of year (000)	$	40,195		$	49,375		$	55,196		$	55,154		$	46,481
Portfolio turnover rate (e)		684%			658%			712%			594%			863%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			0.92	%		0.80	%		N/A
(e)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		481	%		455	%		493	%		422	%		616	%

See notes to financial statements.

108 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Investor A
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.26		$	9.66		$	9.87		$	9.67		$	9.64
Net investment income (a)		0.26			0.22			0.20			0.18			0.18
Net realized and unrealized gain (loss)		0.67			(0.39	)		(0.18	)		0.23			0.05
Net increase (decrease) from investment operations		0.93			(0.17	)		0.02			0.41			0.23
Distributions from net investment income (b)		(0.26	)		(0.23	)		(0.23	)		(0.21	)		(0.20	)
Net asset value, end of year	$	9.93		$	9.26		$	9.66		$	9.87		$	9.67
Total Return (c)
Based on net asset value		10.24%			(1.74)%			0.21%			4.32%			2.42%
Ratios to Average Net Assets
Total expenses		0.93%			0.97%			0.96%			0.91%			0.89%(d)
Total expenses after fees waived and/or reimbursed		0.76%			0.79%			0.78%			0.84%			0.80%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.68%			0.69%			0.68%			0.79%			0.80%
Net investment income		2.69%			2.36%			2.11%			1.81%			1.82%
Supplemental Data
Net assets, end of year (000)	$	492,426		$	427,610		$	470,559		$	503,640		$	474,202
Portfolio turnover rate (e)		684%			658%			712%			594%			863%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (d)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (e)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		481%			455%			493%			422%			616%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 109

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Investor C
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.22		$	9.62		$	9.83		$	9.63		$	9.60
Net investment income (a)		0.19			0.15			0.13			0.10			0.10
Net realized and unrealized gain (loss)		0.67			(0.39	)		(0.19	)		0.24			0.06
Net increase (decrease) from investment operations		0.86			(0.24	)		(0.06	)		0.34			0.16
Distributions from net investment income (b)		(0.19	)		(0.16	)		(0.15	)		(0.14	)		(0.13	)
Net asset value, end of year	$	9.89		$	9.22		$	9.62		$	9.83		$	9.63
Total Return (c)
Based on net asset value		9.45%			(2.49)%			(0.55)%			3.55%			1.66%
Ratios to Average Net Assets
Total expenses (d)		1.68%			1.68%			1.68%			1.63%			1.62%
Total expenses after fees waived and/or reimbursed		1.51%			1.54%			1.52%			1.59%			1.55%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.43%			1.44%			1.44%			1.54%			1.55%
Net investment income		1.96%			1.63%			1.35%			1.06%			1.07%
Supplemental Data
Net assets, end of year (000)	$	49,848		$	61,437		$	71,628		$	110,227		$	109,272
Portfolio turnover rate (e)		684%			658%			712%			594%			863%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (d)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			1.68%			N/A			1.61%
(e) Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		481%			455%			493%			422%			616%

See notes to financial statements.

110 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Class K
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.28		$	9.68		$	9.89		$	9.68		$	9.65
Net investment income (a)		0.29			0.25			0.23			0.21			0.22
Net realized and unrealized gain (loss)		0.67			(0.39	)		(0.18	)		0.25			0.05
Net increase (decrease) from investment operations		0.96			(0.14	)		0.05			0.46			0.27
Distributions from net investment income (b)		(0.29	)		(0.26	)		(0.26	)		(0.25	)		(0.24	)
Net asset value, end of year	$	9.95		$	9.28		$	9.68		$	9.89		$	9.68
Total Return (c)
Based on net asset value		10.55%			(1.44)%			0.52%			4.83%			2.83%
Ratios to Average Net Assets
Total expenses		0.51%			0.54%			0.54%			0.49%			0.47%(d)
Total expenses after fees waived and/or reimbursed		0.46%			0.49%			0.48%			0.45%			0.41%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.38%			0.39%			0.38%			0.40%			0.40%
Net investment income		2.99%			2.66%			2.41%			2.20%			2.21%
Supplemental Data
Net assets, end of year (000)	$	829,549		$	701,197		$	753,563		$	701,478		$	728,521
Portfolio turnover rate (e)		684%			658%			712%			594%			863%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (e)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		481%			455%			493%			422%			616%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 111

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Core Bond Portfolio
	Class R
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.27		$	9.67		$	9.88		$	9.67		$	9.64
Net investment income (a)		0.23			0.20			0.18			0.15			0.15
Net realized and unrealized gain (loss)		0.68			(0.39	)		(0.19	)		0.25			0.06
Net increase (decrease) from investment operations		0.91			(0.19	)		(0.01	)		0.40			0.21
Distributions from net investment income (b)		(0.24	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
Net asset value, end of year	$	9.94		$	9.27		$	9.67		$	9.88		$	9.67
Total Return (c)
Based on net asset value		9.95%			(1.98)%			(0.04)%			4.16%			2.17%
Ratios to Average Net Assets
Total expenses		1.21%			1.25%			1.24%			1.21%			1.17%
Total expenses after fees waived and/or reimbursed		1.01%			1.04%			1.03%			1.09%			1.05%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.93%			0.94%			0.93%			1.04%			1.05%
Net investment income		2.45%			2.13%			1.86%			1.56%			1.57%
Supplemental Data
Net assets, end of year (000)	$	2,712		$	2,921		$	3,900		$	3,761		$	3,050
Portfolio turnover rate (d)		684%			658%			712%			594%			863%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		481%			455%			493%			422%			616%

See notes to financial statements.

112 2 0 1 9    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

Consolidated Financial Highlights

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Institutional
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Net investment income (a)		0.44			0.42			0.43			0.41			0.40
Net realized and unrealized gain (loss)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		0.46			0.26			0.71			0.65			(0.22	)
Distributions (b)
From net investment income		(0.45	)		(0.44	)		(0.47	)		(0.46	)		(0.44	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.45	)		(0.44	)		(0.47	)		(0.46	)		(0.56	)
Net asset value, end of year	$	7.68		$	7.67		$	7.85		$	7.61		$	7.42
Total Return (c)
Based on net asset value		6.34%			3.48%			9.64%(d)			9.21%			(2.82)%
Ratios to Average Net Assets (e)
Total expenses		0.60%			0.61%			0.62%			0.61%(f)			0.59%
Total expenses after fees waived and/or reimbursed		0.60%			0.61%			0.61%			0.61%			0.59%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.60%			0.61%			0.59%			0.60%			0.58%
Net investment income		5.89%			5.49%			5.61%			5.58%			5.08%
Supplemental Data
Net assets, end of year (000)	$	10,693,110		$	9,680,691		$	9,728,106		$	9,031,925		$	10,926,678
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 113

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Service
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.67		$	7.85		$	7.62		$	7.42		$	8.20
Net investment income (a)		0.42			0.40			0.41			0.39			0.38
Net realized and unrealized gain (loss)		0.02			(0.16	)		0.27			0.25			(0.62	)
Net increase (decrease) from investment operations		0.44			0.24			0.68			0.64			(0.24	)
Distributions (b)
From net investment income		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.42	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.54	)
Net asset value, end of year	$	7.68		$	7.67		$	7.85		$	7.62		$	7.42
Total Return (c)
Based on net asset value		6.06%			3.19%			9.15%(d)			9.04%			(3.13)%
Ratios to Average Net Assets (e)
Total expenses (f)		0.87%			0.90%			0.93%			0.90%			0.90%
Total expenses after fees waived and/or reimbursed		0.87%			0.89%			0.93%			0.89%			0.90%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.87%			0.89%			0.90%			0.89%			0.90%
Net investment income		5.64%			5.20%			5.31%			5.32%			4.76%
Supplemental Data
Net assets, end of year (000)	$	154,658		$	176,188		$	231,741		$	378,766		$	303,043
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			0.90	%		N/A			0.90	%		N/A

See notes to financial statements.

114 2 0 1 9    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

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Investor A
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Net investment income (a)		0.42			0.40			0.41			0.39			0.38
Net realized and unrealized gain (loss)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		0.44			0.24			0.69			0.63			(0.24	)
Distributions (b)
From net investment income		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.42	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.43	)		(0.42	)		(0.45	)		(0.44	)		(0.54	)
Net asset value, end of year	$	7.68		$	7.67		$	7.85		$	7.61		$	7.42
Total Return (c)
Based on net asset value		6.00%			3.15%			9.29%(d)			8.86%			(3.11)%
Ratios to Average Net Assets (e)
Total expenses (f)		0.94%			0.96%			0.98%			0.93%			0.93%
Total expenses after fees waived and/or reimbursed		0.92%			0.93%			0.94%			0.93%			0.92%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.92%			0.93%			0.91%			0.92%			0.92%
Net investment income		5.58%			5.17%			5.29%			5.27%			4.75%
Supplemental Data
Net assets, end of year (000)	$	1,329,156		$	1,326,541		$	1,672,705		$	3,733,406		$	2,797,049
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02%			0.01%			0.01%			0.01%			0.01%
(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			0.97%			0.90%			0.89%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 115

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Investor C
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.68		$	7.86		$	7.62		$	7.43		$	8.21
Net investment income (a)		0.37			0.35			0.35			0.33			0.32
Net realized and unrealized gain (loss)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		0.39			0.19			0.63			0.57			(0.30	)
Distributions (b)
From net investment income		(0.38	)		(0.37	)		(0.39	)		(0.38	)		(0.36	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.38	)		(0.37	)		(0.39	)		(0.38	)		(0.48	)
Net asset value, end of year	$	7.69		$	7.68		$	7.86		$	7.62		$	7.43
Total Return (c)
Based on net asset value		5.25%			2.43%			8.48%	(d)		8.04%			(3.85)%
Ratios to Average Net Assets (e)
Total expenses		1.64%			1.64%			1.69%			1.69%			1.67%(f)
Total expenses after fees waived and/or reimbursed		1.64%			1.63%			1.68%			1.69%			1.67%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.64%			1.63%			1.66%			1.68%			1.66%
Net investment income		4.87%			4.47%			4.55%			4.51%			4.00%
Supplemental Data
Net assets, end of year (000)	$	262,204		$	329,005		$	417,276		$	539,243		$	578,935
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%

^(f)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios.

See notes to financial statements.

116 2 0 1 9    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

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Investor C1
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.68		$	7.86		$	7.62		$	7.43		$	8.21
Net investment income (a)		0.38			0.36			0.36			0.34			0.33
Net realized and unrealized gain (loss)		0.02			(0.16	)		0.29			0.25			(0.62	)
Net increase (decrease) from investment operations		0.40			0.20			0.65			0.59			(0.29	)
Distributions (b)
From net investment income		(0.39	)		(0.38	)		(0.41	)		(0.40	)		(0.37	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.39	)		(0.38	)		(0.41	)		(0.40	)		(0.49	)
Net asset value, end of year	$	7.69		$	7.68		$	7.86		$	7.62		$	7.43
Total Return (c)
Based on net asset value		5.39%			2.65%			8.67%	(d)		8.23%			(3.68)%
Ratios to Average Net Assets (e)
Total expenses		1.51%			1.43%			1.51%			1.51%			1.49%
Total expenses after fees waived and/or reimbursed		1.48%			1.43%			1.51%			1.51%			1.49%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.48%			1.43%			1.48%			1.50%			1.49%
Net investment income		5.00%			4.69%			4.75%			4.69%			4.19%
Supplemental Data
Net assets, end of year (000)	$	1,339		$	9,409		$	12,353		$	52,539		$	61,492
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02%			0.01%			0.01%			0.01%			0.01%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 117

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Class K
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.68		$	7.85		$	7.62		$	7.42		$	8.20
Net investment income (a)		0.45			0.43			0.44			0.42			0.41
Net realized and unrealized gain (loss)		0.01			(0.15	)		0.27			0.25			(0.62	)
Net increase (decrease) from investment operations		0.46			0.28			0.71			0.67			(0.21	)
Distributions (b)
From net investment income		(0.46	)		(0.45	)		(0.48	)		(0.47	)		(0.45	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.46	)		(0.45	)		(0.48	)		(0.47	)		(0.57	)
Net asset value, end of year	$	7.68		$	7.68		$	7.85		$	7.62		$	7.42
Total Return (c)
Based on net asset value		6.32%			3.73%			9.59%(d)			9.44%			(2.76)%
Ratios to Average Net Assets (e)
Total expenses (f)		0.49%			0.50%			0.53%			0.53%			0.53%
Total expenses after fees waived and/or reimbursed		0.49%			0.50%			0.52%			0.53%			0.51%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		0.49%			0.50%			0.50%			0.52%			0.51%
Net investment income		5.99%			5.59%			5.70%			5.71%			5.17%
Supplemental Data
Net assets, end of year (000)	$	4,644,939		$	4,312,394		$	5,363,522		$	5,028,654		$	1,853,500
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02	%		0.01	%		0.01	%		0.01	%		0.01	%
(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		0.49	%		0.50	%		0.53	%		0.53	%		N/A

See notes to financial statements.

118 2 0 1 9    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

Consolidated Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock High Yield Bond Portfolio
	Class R
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	7.67		$	7.85		$	7.61		$	7.42		$	8.20
Net investment income (a)		0.40			0.38			0.38			0.36			0.35
Net realized and unrealized gain (loss)		0.02			(0.16	)		0.28			0.24			(0.62	)
Net increase (decrease) from investment operations		0.42			0.22			0.66			0.60			(0.27	)
Distributions (b)
From net investment income		(0.41	)		(0.40	)		(0.42	)		(0.41	)		(0.39	)
From net realized gain		—			—			—			—			(0.12	)
Total distributions		(0.41	)		(0.40	)		(0.42	)		(0.41	)		(0.51	)
Net asset value, end of year	$	7.68		$	7.67		$	7.85		$	7.61		$	7.42
Total Return (c)
Based on net asset value		5.69%			2.83%			8.94%	(d)		8.51%			(3.43)%
Ratios to Average Net Assets (e)
Total expenses (f)		1.22%			1.24%			1.26%			1.26%			1.23%
Total expenses after fees waived and/or reimbursed		1.21%			1.24%			1.26%			1.26%			1.23%
Total expenses after fees waived and/or reimbursed and excluding interest expense and income tax		1.21%			1.24%			1.23%			1.25%			1.22%
Net investment income		5.28%			4.86%			4.96%			4.95%			4.46%
Supplemental Data
Net assets, end of year (000)	$	125,710		$	128,584		$	132,868		$	113,010		$	97,300
Portfolio turnover rate		102%			90%			86%			90%			70%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Where applicable, assumes the reinvestment of distributions. (d)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (e)  Excludes expenses incurred indirectly as a result of investments in underlying funds as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Investments in underlying funds		0.02%			0.01%			0.01%			0.01%			0.01%
(f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			1.26%			1.26%			1.22%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 119

Financial Highlights

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Institutional
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.47		$	9.63		$	9.65		$	9.68		$	9.74
Net investment income (a)		0.25			0.21			0.16			0.16			0.16
Net realized and unrealized gain (loss)		0.18			(0.14	)		0.02			—			(0.04	)
Net increase from investment operations		0.43			0.07			0.18			0.16			0.12
Distributions (b)
From net investment income		(0.26	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.26	)		(0.23	)		(0.20	)		(0.19	)		(0.18	)
Net asset value, end of year	$	9.64		$	9.47		$	9.63		$	9.65		$	9.68
Total Return (d)
Based on net asset value		4.59%	(e)		0.69%	(e)		1.88%			1.63%			1.19%
Ratios to Average Net Assets
Total expenses		0.45%	(f)		0.52%	(g)		0.49%	(g)		0.50%			0.52%(g)
Total expenses after fees waived and/or reimbursed		0.40%	(f)		0.48%			0.43%			0.47%			0.45%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.40%	(f)		0.40%			0.41%			0.45%			0.45%
Net investment income		2.60%	(f)		2.21%			1.69%			1.66%			1.61%
Supplemental Data
Net assets, end of year (000)	$	5,374,564		$	4,274,410		$	3,097,000		$	3,020,681		$	2,885,841
Portfolio turnover rate (h)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

120 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Service
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income (a)		0.22			0.18			0.14			0.13			0.13
Net realized and unrealized gain (loss)		0.17			(0.14	)		0.02			(0.01	)		(0.05	)
Net increase from investment operations		0.39			0.04			0.16			0.12			0.08
Distributions (b)
From net investment income		(0.23	)		(0.18	)		(0.17	)		(0.15	)		(0.15	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.23	)		(0.20	)		(0.17	)		(0.15	)		(0.15	)
Net asset value, end of year	$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return (d)
Based on net asset value		4.23%	(e)		0.43%	(e)		1.73%			1.29%			0.78%
Ratios to Average Net Assets
Total expenses (f)		0.76%	(g)		0.87%			0.81%			0.81%			0.88%
Total expenses after fees waived and/or reimbursed		0.65%	(g)		0.74%			0.68%			0.81%			0.77%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.65%	(g)		0.66%			0.67%			0.79%			0.77%
Net investment income		2.36%	(g)		1.93%			1.41%			1.32%			1.31%
Supplemental Data
Net assets, end of year (000)	$	30,950		$	29,050		$	37,710		$	60,358		$	56,550
Portfolio turnover rate (h)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			0.81%			0.78%			0.88%
(g) Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (h)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 121

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor A
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income (a)		0.22			0.18			0.14			0.13			0.12
Net realized and unrealized gain (loss)		0.17			(0.14	)		0.02			(0.01	)		(0.04	)
Net increase from investment operations		0.39			0.04			0.16			0.12			0.08
Distributions (b)
From net investment income		(0.23	)		(0.18	)		(0.17	)		(0.15	)		(0.15	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.23	)		(0.20	)		(0.17	)		(0.15	)		(0.15	)
Net asset value, end of year	$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return (d)
Based on net asset value		4.23%	(e)		0.43%	(e)		1.73%			1.29%			0.75%
Ratios to Average Net Assets
Total expenses (f)		0.78%	(g)		0.88%			0.81%			0.83%			0.86%
Total expenses after fees waived and/or reimbursed		0.65%	(g)		0.74%			0.68%			0.81%			0.79%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.65%	(g)		0.66%			0.66%			0.79%			0.79%
Net investment income		2.35%	(g)		1.94%			1.47%			1.32%			1.29%
Supplemental Data
Net assets, end of year (000)	$	1,318,473		$	1,267,494		$	1,309,023		$	875,788		$	822,299
Portfolio turnover rate (h)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Includes recoupment of past waived and/or reimbursed fees. Excluding the recoupment of past waived and/or reimbursed fees, the expense ratios were as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Expense ratios		N/A			N/A			N/A			N/A			0.85%
(g)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (h)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

122 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor A1
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.48		$	9.64		$	9.65		$	9.68		$	9.75
Net investment income (a)		0.24			0.20			0.15			0.15			0.14
Net realized and unrealized gain (loss)		0.17			(0.14	)		0.03			(0.01	)		(0.05	)
Net increase from investment operations		0.41			0.06			0.18			0.14			0.09
Distributions (b)
From net investment income		(0.25	)		(0.20	)		(0.19	)		(0.17	)		(0.16	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.25	)		(0.22	)		(0.19	)		(0.17	)		(0.16	)
Net asset value, end of year	$	9.64		$	9.48		$	9.64		$	9.65		$	9.68
Total Return (d)
Based on net asset value		4.38%(e)			0.59%(e)			1.88%			1.48%			0.94%
Ratios to Average Net Assets
Total expenses		0.59%(f)			0.70%			0.66%			0.68%			0.69%
Total expenses after fees waived and/or reimbursed		0.50%(f)			0.59%			0.53%			0.62%			0.60%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.50%(f)			0.51%			0.51%			0.60%			0.60%
Net investment income		2.51%(f)			2.09%			1.59%			1.51%			1.47%
Supplemental Data
Net assets, end of year (000)	$	8,621		$	9,492		$	10,751		$	11,892		$	14,742
Portfolio turnover rate (g)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 123

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor C
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.46		$	9.63		$	9.64		$	9.67		$	9.73
Net investment income (a)		0.15			0.11			0.06			0.06			0.05
Net realized and unrealized gain (loss)		0.18			(0.15	)		0.03			(0.01	)		(0.04	)
Net increase (decrease) from investment operations		0.33			(0.04	)		0.09			0.05			0.01
Distributions (b)
From net investment income		(0.16	)		(0.11	)		(0.10	)		(0.08	)		(0.07	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.16	)		(0.13	)		(0.10	)		(0.08	)		(0.07	)
Net asset value, end of year	$	9.63		$	9.46		$	9.63		$	9.64		$	9.67
Total Return (d)
Based on net asset value		3.56%	(e)		(0.42)%(e)			0.97%			0.55%			0.11%
Ratios to Average Net Assets
Total expenses		1.52%	(f)		1.62%			1.58%			1.59%			1.59%
Total expenses after fees waived and/or reimbursed		1.40%	(f)		1.49%			1.43%			1.55%			1.53%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.40%	(f)		1.41%			1.42%			1.53%			1.53%
Net investment income		1.61%	(f)		1.18%			0.67%			0.58%			0.54%
Supplemental Data
Net assets, end of year (000)	$	152,890		$	172,631		$	243,527		$	372,307		$	361,424
Portfolio turnover rate (g)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

124 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor C2
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income (a)		0.21			0.17			0.11			0.11			0.11
Net realized and unrealized gain (loss)		0.17			(0.14	)		0.04			—			(0.05	)
Net increase from investment operations		0.38			0.03			0.15			0.11			0.06
Distributions (b)
From net investment income		(0.22	)		(0.17	)		(0.16	)		(0.14	)		(0.13	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.22	)		(0.19	)		(0.16	)		(0.14	)		(0.13	)
Net asset value, end of year	$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return (d)
Based on net asset value		4.05%	(e)		0.28%	(e)		1.57%			1.14%			0.60%
Ratios to Average Net Assets
Total expenses		1.21%	(f)		1.04%			0.97%	(g)		0.98%			0.99%
Total expenses after fees waived and/or reimbursed		0.80%	(f)		0.89%			0.83%			0.96%			0.94%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.80%	(f)		0.81%			0.82%			0.94%			0.94%
Net investment income		2.19%	(f)		1.78%			1.20%			1.17%			1.14%
Supplemental Data
Net assets, end of year (000)	$	13		$	574		$	852		$	6,139		$	6,938
Portfolio turnover rate (h)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 125

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Investor C3
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.46		$	9.63		$	9.64		$	9.67		$	9.73
Net investment income (a)		0.16			0.12			0.06			0.06			0.06
Net realized and unrealized gain (loss)		0.18			(0.15	)		0.04			(0.01	)		(0.06	)
Net increase (decrease) from investment operations		0.34			(0.03	)		0.10			0.05			0.00
Distributions (b)
From net investment income		(0.17	)		(0.12	)		(0.11	)		(0.08	)		(0.06	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.17	)		(0.14	)		(0.11	)		(0.08	)		(0.06	)
Net asset value, end of year	$	9.63		$	9.46		$	9.63		$	9.64		$	9.67
Total Return (d)
Based on net asset value		3.66%	(e)		(0.32)%(e)			1.07%			0.57%			0.14%
Ratios to Average Net Assets
Total expenses		1.61%	(f)		1.67%			1.56%	(g)		1.57%			1.57%
Total expenses after fees waived and/or reimbursed		1.30%	(f)		1.39%			1.33%			1.52%			1.50%
Total expenses after fees waived and/or reimbursed and excluding interest expense		1.30%	(f)		1.31%			1.32%			1.50%			1.50%
Net investment income		1.69%	(f)		1.29%			0.69%			0.61%			0.57%
Supplemental Data
Net assets, end of year (000)	$	463		$	1,675		$	2,197		$	18,350		$	21,631
Portfolio turnover rate (h)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, excludes the effects of any sales charges and assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

126 2 0 1 9    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

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Class K
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.46		$	9.62		$	9.64		$	9.67		$	9.73
Net investment income (a)		0.25			0.22			0.15			0.16			0.16
Net realized and unrealized gain (loss)		0.18			(0.15	)		0.03			—			(0.04	)
Net increase from investment operations		0.43			0.07			0.18			0.16			0.12
Distributions (b)
From net investment income		(0.26	)		(0.21	)		(0.20	)		(0.19	)		(0.18	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.26	)		(0.23	)		(0.20	)		(0.19	)		(0.18	)
Net asset value, end of year	$	9.63		$	9.46		$	9.62		$	9.64		$	9.67
Total Return (d)
Based on net asset value		4.65%	(e)		0.73%	(e)		1.93%			1.69%			1.24%
Ratios to Average Net Assets
Total expenses		0.37%	(f)		0.46%			0.43%			0.44%			0.44%(g)
Total expenses after fees waived and/or reimbursed		0.35%	(f)		0.44%			0.37%			0.41%			0.40%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.35%	(f)		0.35%			0.36%			0.40%			0.40%
Net investment income		2.64%	(f)		2.27%			1.63%			1.71%			1.67%
Supplemental Data
Net assets, end of year (000)	$	512,940		$	258,340		$	161,006		$	930,769		$	927,190
Portfolio turnover rate (h)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes recoupment of past waived and/or reimbursed fees with no financial impact to the expense ratios. (h)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

F I N A N C I A L    H I G H L I G H T S 127

Financial Highlights  (continued)

(For a share outstanding throughout each period)

	BlackRock Low Duration Bond Portfolio
	Class R
	Year Ended September 30,
	2019			2018			2017			2016			2015
Net asset value, beginning of year	$	9.47		$	9.63		$	9.64		$	9.67		$	9.74
Net investment income (a)		0.20			0.16			0.11			0.10			0.10
Net realized and unrealized gain (loss)		0.17			(0.14	)		0.03			—			(0.05	)
Net increase from investment operations		0.37			0.02			0.14			0.10			0.05
Distributions (b)
From net investment income		(0.21	)		(0.16	)		(0.15	)		(0.13	)		(0.12	)
From return of capital		(0.00	)(c)		(0.02	)		—			—			—
Total distributions		(0.21	)		(0.18	)		(0.15	)		(0.13	)		(0.12	)
Net asset value, end of year	$	9.63		$	9.47		$	9.63		$	9.64		$	9.67
Total Return (d)
Based on net asset value		3.97%	(e)		0.18%	(e)		1.47%			1.04%			0.48%
Ratios to Average Net Assets
Total expenses		1.18%	(f)		1.24%			1.25%			1.24%			1.16%
Total expenses after fees waived and/or reimbursed		0.90%	(f)		0.99%			0.93%			1.06%			1.05%
Total expenses after fees waived and/or reimbursed and excluding interest expense		0.90%	(f)		0.91%			0.92%			1.04%			1.05%
Net investment income		2.10%	(f)		1.69%			1.18%			1.07%			1.02%
Supplemental Data
Net assets, end of year (000)	$	3,949		$	4,493		$	4,794		$	5,181		$	4,247
Portfolio turnover rate (g)		182%			218%			292%			316%			289%
(a)  Based on average shares outstanding. (b)  Distributions for annual periods determined in accordance with U.S. federal income tax regulations. (c)  Amount is greater than $(0.005) per share. (d)  Where applicable, assumes the reinvestment of distributions. (e)  Includes payment received from an affiliate, which had no impact on the Fund’s total return. (f)  Excludes expenses incurred indirectly as a result of investments in underlying funds of 0.01%. (g)  Includes mortgage dollar roll transactions (“MDRs”). Additional information regarding portfolio turnover rate is as follows:
	Year Ended September 30,
	2019			2018			2017			2016			2015
Portfolio turnover rate (excluding MDRs)		144%			169%			208%			246%			231%

See notes to financial statements.

128 2 0 1 9    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

Notes to Financial Statements

1. ORGANIZATION

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

Fund Name	Herein Referred To As	Diversification Classification
BlackRock Core Bond Portfolio	Core Bond	Diversified
BlackRock High Yield Bond Portfolio	High Yield Bond	Diversified
BlackRock Low Duration Bond Portfolio	Low Duration Bond	Diversified

Each Fund offers multiple classes of shares. All classes of shares have identical voting, dividend, liquidation and other rights and are subject to the same terms and conditions, except that certain classes bear expenses related to the shareholder servicing and distribution of such shares. Institutional, Service and Class K Shares are sold without a sales charge and only to certain eligible investors. Investor A Shares are generally sold with an initial sales charge, and may be subject to a CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. Investor A1 Shares are subject to a maximum sales charge on purchases of 1.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans, which are currently the only investors who may invest in Investor A1 Shares. Investor C, Investor C1, Investor C2 and Investor C3 Shares may be subject to a 1.00% CDSC if redeemed within one year of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through the reinvestment of dividends and capital gains by existing shareholders. Class R Shares are sold without a sales charge and available only to certain employer-sponsored retirement plans. Service, Investor A, Investor A1, Investor C, Investor C1, Investor C2 and Class R Shares bear certain expenses related to shareholder servicing of such shares, and Investor C, Investor C1, Investor C2 and Class R Shares also bear certain expenses related to the distribution of such shares. Investor A and Investor C Shares are generally available through financial intermediaries. Investor A1, C1, C2 and C3 Shares are only available for dividend and capital gain reinvestment by existing shareholders, and for purchase by certain employer-sponsored retirement plans. Effective November 8, 2018, the Funds adopted an automatic conversion feature whereby Investor C, C1, C2 and C3 Shares held for approximately ten years will be automatically converted into Investor A Shares. Each class has exclusive voting rights with respect to matters relating to its shareholder servicing and distribution expenditures (except that Investor C, C1, C2 and C3 shareholders may vote on material changes to the Investor A Shares distribution and service plan).

Share Class	Initial Sales Charge			CDSC			Conversion Privilege
Institutional, Service, Class K and Class R Shares		No			No		None
Investor A Shares.		Yes			No	(a)	None
Investor A1 Shares		No	(b)		No	(c)	None
Investor C Shares		No			Yes		To Investor A Shares after approximately 10 years
Investor C1, Investor C2 and Investor C3 Shares		No			No	(d)	To Investor A Shares after approximately 10 years

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

^(b)  Investor A1 Shares are subject to a maximum sales charge on purchases of 1.00%. The sales charge does not apply to dividend and capital gain reinvestments by existing shareholders and new purchases for certain employer-sponsored retirement plans, which are currently the only investors who may invest in Investor A1 Shares.

^(c)  Investor A1 Shares may be subject to CDSC for certain redemptions where no initial sales charge was paid at the time of purchase. However, the CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

^(d)  A CDSC of 1.00% is assessed on certain redemptions of Investor C1, C2 and C3 Shares made within one year after purchase. The CDSC does not apply to redemptions by certain employer-sponsored retirement plans or to redemptions of shares acquired through reinvestment of dividends and capital gains by existing shareholders.

The Funds, together with certain other registered investment companies advised by BlackRock Advisors, LLC (the “Manager”) or its affiliates, are included in a complex of open-end non-index fixed-income mutual funds and all BlackRock-advised closed-end funds referred to as the BlackRock Fixed-Income Complex.

Basis of Consolidation: The accompanying consolidated financial statements of High Yield Bond include the accounts of BLK BR HY (Luxembourg) Investments, S.a.r.l. (the “Taxable Subsidiary”), which is a wholly-owned taxable subsidiary of High Yield Bond which holds shares of private Canadian companies. Gains on the sale of such shares will generally not be subject to capital gains taxes in Canada. Income earned on the investment held by the Taxable Subsidiary may be taxable to such subsidiary in Luxembourg. A tax provision, if any, is included in expenses in the Consolidated Statement of Operations for High Yield Bond. An income tax provision for income, if any, is shown as income tax in the Consolidated Statement of Operations. A tax provision for realized and unrealized gains, if any, is included as a reduction of realized and/or unrealized gain (loss) in the Consolidated Statement of Operations for High Yield Bond. The net assets of the Taxable Subsidiary as of period end were $2,754,830, which is 0.02% of High Yield Bond’s consolidated net assets. Intercompany accounts and transactions, if any, have been eliminated. The Subsidiary is subject to the same investment policies and restrictions that apply to High Yield Bond, except that the Subsidiary may invest without limitation in commodity-related instruments.

2. SIGNIFICANT ACCOUNTING POLICIES

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

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

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

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

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

In-Kind Redemptions: High Yield Bond transferred securities and cash to shareholders in connection with an in-kind redemption transaction. For financial reporting purposes, these transactions were treated as a sale of securities and the resulting gains and losses were recognized based on the market value of the securities on the date of the redemption. For the year ended September 30, 2019, High Yield Bond had in-kind redemptions of $128,056,817. For tax purposes, no gains or losses were recognized.

Net gains and losses resulting from such in-kind redemptions, which are included in the Consolidated Statement of Operations were as follows:

Investments — unaffiliated	$	(6,631,801	)
Options written		10,456
	$	(6,621,345	)

Distributions: Distributions from net investment income are declared daily and paid monthly. Distributions of capital gains are recorded on the ex-dividend date and made at least annually. Portions of return of capital distributions under U.S. GAAP may be taxed at ordinary income rates. The character of distributions is determined in accordance with U.S. federal income tax regulations, which may differ from U.S. GAAP. The portion of distributions that exceeds a Fund’s current and accumulated earnings and profits, as measured on a tax basis, constitute a non-taxable return of capital. Realized net capital gains can be offset by capital losses carried forward from prior years. However, certain Funds have capital loss carryforwards from pre-2012 tax years that offset realized net capital gains but do not offset current earnings and profits. Consequently, if distributions in any tax year are less than the Fund’s current earnings and profits but greater than net investment income and net realized capital gains (taxable income), distributions in excess of taxable income are not treated as non-taxable return of capital, but rather may be taxable to shareholders at ordinary income rates. Under certain circumstances, taxable excess distributions could be significant. See Note 8, Income Tax Information, for the tax character of each Fund’s distributions paid during the year.

Deferred Compensation Plan: Under the Deferred Compensation Plan (the “Plan”) approved by each Fund’s Board effective January 1, 2019, the trustees who are not “interested persons” of the Funds, as defined in the 1940 Act (“Independent Trustees”), may defer a portion of their annual complex-wide compensation. Deferred amounts earn an approximate return as though equivalent dollar amounts had been invested in common shares of certain funds in the BlackRock Fixed-Income Complex selected by the Independent Trustees. This has the same economic effect for the Independent Trustees as if the Independent Trustees had invested the deferred amounts directly in certain funds in the BlackRock Fixed-Income Complex.

The Plan is not funded and obligations thereunder represent general unsecured claims against the general assets of each Fund, as applicable. Deferred compensation liabilities are included in the Trustees’ and Officer’s fees payable in the Statements of Assets and Liabilities and will remain as a liability of the Funds until such amounts are distributed in accordance with the Plan.

Recent Accounting Standards: In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update “Premium Amortization of Purchased Callable Debt Securities” which amends the amortization period for certain purchased callable debt securities. Under the new guidance, the premium amortization of purchased callable debt securities that have explicit, non-contingent call features and are callable at fixed prices will be amortized to the earliest call date. The guidance will be applied on a modified retrospective basis and is effective for fiscal years, and their interim periods, beginning after December 15, 2018. Management continues to evaluate the impact of this guidance on the Funds.

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

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

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3. INVESTMENT VALUATION AND FAIR VALUE MEASUREMENTS

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

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

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

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

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

• Municipal investments (including commitments to purchase such investments on a “when-issued” basis) are valued on the basis of prices provided by dealers or pricing services. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments and information with respect to various relationships between investments.

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

• High Yield Bond values its investment in SL Liquidity Series, LLC, Money Market Series (the “Money Market Series”) at fair value, which is ordinarily based upon its pro rata ownership in the underlying fund’s net assets. The Money Market Series seeks current income consistent with maintaining liquidity and preserving capital. Although the Money Market Series is not registered under the 1940 Act, its investments may follow the parameters of investments by a money market fund that is subject to Rule 2a-7 under the 1940 Act.

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

• Forward foreign currency exchange contracts are valued at the mean between the bid and ask prices and are determined as of the close of trading on the NYSE based on that day’s prevailing forward exchange rate for the underlying currencies. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available.

• Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. An exchange-traded option for which there is no mean price is valued at the last bid (long positions) or ask (short positions) price. If no bid or ask price is available, the prior day’s price will be used, unless it is determined that the prior day’s price no longer reflects the fair value of the option. OTC options and options on swaps (“swaptions”) are valued by an independent pricing service using a mathematical model, which incorporates a number of market data factors, such as the trades and prices of the underlying instruments.

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

• To-be-announced (“TBA”) commitments are valued on the basis of last available bid prices or current market quotations provided by pricing services.

If events (e.g., a company announcement, market volatility or a natural disaster) occur that are expected to materially affect the value of such investments, or in the event that the application of these methods of valuation results in a price for an investment that is deemed not to be representative of the market value of such investment, or if a price is not available, the investment will be valued by the Global Valuation Committee, or its delegate, in accordance with a policy approved by the Board as reflecting fair value (“Fair Valued Investments”). The fair valuation approaches that may be used by the Global Valuation Committee will include market approach, income approach and cost approach. Valuation techniques such as discounted cash flow, use of market comparables and matrix pricing are types of valuation approaches and are typically used in determining fair value. When determining the price for Fair Valued Investments, the Global Valuation Committee, or its delegate, seeks to determine the price that each Fund might reasonably expect to receive or pay from the current sale or purchase of that asset or liability in an arm’s-length transaction. Fair value determinations shall be based

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Notes to Financial Statements  (continued)

upon all available factors that the Global Valuation Committee, or its delegate, deems relevant and consistent with the principles of fair value measurement. The pricing of all Fair Valued Investments is subsequently reported to the Board or a committee thereof on a quarterly basis.

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

	Standard Inputs Generally Considered By Third Party Pricing Services
Market approach	(i)  recent market transactions, including subsequent rounds of financing, in the underlying investment or comparable issuers; (ii) recapitalizations and other transactions across the capital structure; and (iii)   market multiples of comparable issuers.
Income approach	(i)  future cash flows discounted to present and adjusted as appropriate for liquidity, credit, and/or market risks; (ii) quoted prices for similar investments or assets in active markets; and (iii)   other risk factors, such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, recovery rates, liquidation amounts and/or default rates.
Cost approach	(i)  audited or unaudited financial statements, investor communications and financial or operational metrics issued by the Private Company; (ii) changes in the valuation of relevant indices or publicly traded companies comparable to the Private Company; (iii)   relevant news and other public sources; and (iv)   known secondary market transactions in the Private Company’s interests and merger or acquisition activity in companies comparable to the Private Company.

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

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

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

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

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

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

The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety. Investments classified within Level 3 have significant unobservable inputs used by the Global Valuation Committee in determining the price for Fair Valued Investments. Level 3 investments include equity or debt issued by Private Companies. There may not be a secondary market, and/or there are a limited number of investors. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investments and derivative financial instruments and is not necessarily an indication of the risks associated with investing in those securities.

As of September 30, 2019, certain investments of the High Yield Bond were valued using NAV per share as no quoted market value is available and therefore have been excluded from the fair value hierarchy.

4. SECURITIES AND OTHER INVESTMENTS

Asset-Backed and Mortgage-Backed Securities: Asset-backed securities are generally issued as pass-through certificates or as debt instruments. Asset-backed securities issued as pass-through certificates represent undivided fractional ownership interests in an underlying pool of assets. Asset-backed securities issued as debt instruments, which are also known as collateralized obligations, are typically issued as the debt of a special purpose entity organized solely for the purpose of owning such assets and issuing such debt. Asset-backed securities are often backed by a pool of assets representing the obligations of a number of different parties. The yield characteristics of certain asset-backed securities may differ from traditional debt securities. One such major difference is that all or a principal part of the obligations may be prepaid at any time because the underlying assets (i.e., loans) may be prepaid at any time. As a result, a decrease in interest rates in the market may result in increases in the level of prepayments as borrowers, particularly mortgagors, refinance and repay their loans. An increased prepayment rate with respect to an asset-backed security will have the

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effect of shortening the maturity of the security. In addition, a fund may subsequently have to reinvest the proceeds at lower interest rates. If a fund has purchased such an asset-backed security at a premium, a faster than anticipated prepayment rate could result in a loss of principal to the extent of the premium paid.

For mortgage pass-through securities (the “Mortgage Assets”) there are a number of important differences among the agencies and instrumentalities of the U.S. Government that issue mortgage-related securities and among the securities that they issue. For example, mortgage-related securities guaranteed by Ginnie Mae are guaranteed as to the timely payment of principal and interest by Ginnie Mae and such guarantee is backed by the full faith and credit of the United States. However, mortgage-related securities issued by Freddie Mac and Fannie Mae, including Freddie Mac and Fannie Mae guaranteed mortgage pass-through certificates, which are solely the obligations of Freddie Mac and Fannie Mae, are not backed by or entitled to the full faith and credit of the United States, but are supported by the right of the issuer to borrow from the U.S. Treasury.

Non-agency mortgage-backed securities are securities issued by non-governmental issuers and have no direct or indirect government guarantees of payment and are subject to various risks. Non-agency mortgage loans are obligations of the borrowers thereunder only and are not typically insured or guaranteed by any other person or entity. The ability of a borrower to repay a loan is dependent upon the income or assets of the borrower. A number of factors, including a general economic downturn, acts of God, terrorism, social unrest and civil disturbances, may impair a borrower’s ability to repay its loans.

Collateralized Debt Obligations: Collateralized debt obligations (“CDOs”), including collateralized bond obligations (“CBOs”) and collateralized loan obligations (“CLOs”), are types of asset-backed securities. A CDO is an entity that is backed by a diversified pool of debt securities (CBOs) or syndicated bank loans (CLOs). The cash flows of the CDO can be split into multiple segments, called “tranches,” which will vary in risk profile and yield. The riskiest segment is the subordinated or “equity” tranche. This tranche bears the greatest risk of defaults from the underlying assets in the CDO and serves to protect the other, more senior, tranches from default in all but the most severe circumstances. Since it is shielded from defaults by the more junior tranches, a “senior” tranche will typically have higher credit ratings and lower yields than their underlying securities, and often receive investment grade ratings from one or more of the nationally recognized rating agencies. Despite the protection from the more junior tranches, senior tranches can experience substantial losses due to actual defaults, increased sensitivity to future defaults and the disappearance of one or more protecting tranches as a result of changes in the credit profile of the underlying pool of assets.

Inflation-Indexed Bonds: Inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) are fixed-income securities whose principal value is periodically adjusted according to the rate of inflation. If the index measuring inflation rises or falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed and certain corporate inflation-indexed bonds) will be adjusted upward or downward, and consequently the interest payable on these securities (calculated with respect to a larger or smaller principal amount) will be increased or reduced, respectively. Any upward or downward adjustment in the principal amount of an inflation-indexed bond will be included as interest income in the Statements of Operations, even though investors do not receive their principal until maturity. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds. For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.

Multiple Class Pass-Through Securities: Multiple class pass-through securities, including collateralized mortgage obligations (“CMOs”) and commercial mortgage-backed securities, may be issued by Ginnie Mae, U.S. Government agencies or instrumentalities or by trusts formed by private originators of, or investors in, mortgage loans. In general, CMOs are debt obligations of a legal entity that are collateralized by a pool of residential or commercial mortgage loans or Mortgage Assets. The payments on these are used to make payments on the CMOs or multiple pass-through securities. Multiple class pass-through securities represent direct ownership interests in the Mortgage Assets. Classes of CMOs include interest only (“IOs”), principal only (“POs”), planned amortization classes and targeted amortization classes. IOs and POs are stripped mortgage-backed securities representing interests in a pool of mortgages, the cash flow from which has been separated into interest and principal components. IOs receive the interest portion of the cash flow while POs receive the principal portion. IOs and POs can be extremely volatile in response to changes in interest rates. As interest rates rise and fall, the value of IOs tends to move in the same direction as interest rates. POs perform best when prepayments on the underlying mortgages rise since this increases the rate at which the principal is returned and the yield to maturity on the PO. When payments on mortgages underlying a PO are slower than anticipated, the life of the PO is lengthened and the yield to maturity is reduced. If the underlying Mortgage Assets experience greater than anticipated prepayments of principal, a fund’s initial investment in the IOs may not fully recoup.

Stripped Mortgage-Backed Securities: Stripped mortgage-backed securities are typically issued by the U.S. Government, its agencies and instrumentalities. Stripped mortgage-backed securities are usually structured with two classes that receive different proportions of the interest (IOs) and principal (POs) distributions on a pool of Mortgage Assets. Stripped mortgage-backed securities may be privately issued.

Zero-Coupon Bonds: Zero-coupon bonds are normally issued at a significant discount from face value and do not provide for periodic interest payments. These bonds may experience greater volatility in market value than other debt obligations of similar maturity which provide for regular interest payments.

Capital Securities and Trust Preferred Securities: Capital securities, including trust preferred securities, are typically issued by corporations, generally in the form of interest-bearing notes with preferred securities characteristics. In the case of trust preferred securities, an affiliated business trust of a corporation issues these securities, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The securities can be structured with either a fixed or adjustable coupon that can have either a perpetual or stated maturity date. For trust preferred securities, the issuing bank or corporation pays interest to the trust, which is then distributed to holders of these securities as a dividend. Dividends can be deferred without creating an event of default or acceleration, although maturity cannot take place unless all cumulative payment obligations have been met. The deferral of payments does not affect the purchase or sale of these securities in the open market. These securities generally are rated below that of the issuing company’s senior debt securities and are freely callable at the issuer’s option.

Preferred Stocks: Preferred stock has a preference over common stock in liquidation (and generally in receiving dividends as well), but is subordinated to the liabilities of the issuer in all respects. As a general rule, the market value of preferred stock with a fixed dividend rate and no conversion element varies inversely with interest rates and perceived credit risk, while the market price of convertible preferred stock generally also reflects some element of conversion value. Because preferred stock is junior to debt securities and other obligations of the issuer, deterioration in the credit quality of the issuer will cause greater changes in the value of a preferred stock than in a more senior

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debt security with similar stated yield characteristics. Unlike interest payments on debt securities, preferred stock dividends are payable only if declared by the issuer’s board of directors. Preferred stock also may be subject to optional or mandatory redemption provisions.

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

Floating Rate Loan Interests: Floating rate loan interests are typically issued to companies (the “borrower”) by banks, other financial institutions, or privately and publicly offered corporations (the “lender”). Floating rate loan interests are generally non-investment grade, often involve borrowers whose financial condition is troubled or uncertain and companies that are highly leveraged or in bankruptcy proceedings. In addition, transactions in floating rate loan interests may settle on a delayed basis, which may result in proceeds from the sale not being readily available for a fund to make additional investments or meet its redemption obligations. Floating rate loan interests may include fully funded term loans or revolving lines of credit. Floating rate loan interests are typically senior in the corporate capital structure of the borrower. Floating rate loan interests generally pay interest at rates that are periodically determined by reference to a base lending rate plus a premium. Since the rates reset only periodically, changes in prevailing interest rates (and particularly sudden and significant changes) can be expected to cause some fluctuations in the NAV of a fund to the extent that it invests in floating rate loan interests. The base lending rates are generally the lending rate offered by one or more European banks, such as the London Interbank Offered Rate (“LIBOR”), the prime rate offered by one or more U.S. banks or the certificate of deposit rate. Floating rate loan interests may involve foreign borrowers, and investments may be denominated in foreign currencies. These investments are treated as investments in debt securities for purposes of a fund’s investment policies.

When a fund purchases a floating rate loan interest, it may receive a facility fee and when it sells a floating rate loan interest, it may pay a facility fee. On an ongoing basis, a fund may receive a commitment fee based on the undrawn portion of the underlying line of credit amount of a floating rate loan interest. Facility and commitment fees are typically amortized to income over the term of the loan or term of the commitment, respectively. Consent and amendment fees are recorded to income as earned. Prepayment penalty fees, which may be received by a fund upon the prepayment of a floating rate loan interest by a borrower, are recorded as realized gains. A fund may invest in multiple series or tranches of a loan. A different series or tranche may have varying terms and carry different associated risks.

Floating rate loan interests are usually freely callable at the borrower’s option. A fund may invest in such loans in the form of participations in loans (“Participations”) or assignments (“Assignments”) of all or a portion of loans from third parties. Participations typically will result in a fund having a contractual relationship only with the lender, not with the borrower. A fund has the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the Participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing Participations, a fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, nor any rights of offset against the borrower. A fund may not benefit directly from any collateral supporting the loan in which it has purchased the Participation. As a result, a fund assumes the credit risk of both the borrower and the lender that is selling the Participation. A fund’s investment in loan participation interests involves the risk of insolvency of the financial intermediaries who are parties to the transactions. In the event of the insolvency of the lender selling the Participation, a fund may be treated as a general creditor of the lender and may not benefit from any offset between the lender and the borrower. Assignments typically result in a fund having a direct contractual relationship with the borrower, and a fund may enforce compliance by the borrower with the terms of the loan agreement.

Forward Commitments, When-Issued and Delayed Delivery Securities: Certain funds may purchase securities on a when-issued basis and may purchase or sell securities on a forward commitment basis. Settlement of such transactions normally occurs within a month or more after the purchase or sale commitment is made. A fund may purchase securities under such conditions with the intention of actually acquiring them, but may enter into a separate agreement to sell the securities before the settlement date. Since the value of securities purchased may fluctuate prior to settlement, a fund may be required to pay more at settlement than the security is worth. In addition, a fund is not entitled to any of the interest earned prior to settlement. When purchasing a security on a delayed delivery basis, a fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations. In the event of default by the counterparty, a fund’s maximum amount of loss is the unrealized appreciation of unsettled when-issued transactions.

TBA Commitments: TBA commitments are forward agreements for the purchase or sale of mortgage-backed securities for a fixed price, with payment and delivery on an agreed upon future settlement date. The specific securities to be delivered are not identified at the trade date. However, delivered securities must meet specified terms, including issuer, rate and mortgage terms. When entering into TBA commitments, a fund may take possession of or deliver the underlying mortgage-backed securities but can extend the settlement or roll the transaction. TBA commitments involve a risk of loss if the value of the security to be purchased or sold declines or increases, respectively, prior to settlement date.

In order to better define contractual rights and to secure rights that will help a fund mitigate their counterparty risk, TBA commitments may be entered into by a fund under Master Securities Forward Transaction Agreements (each, an “MSFTA”). An MSFTA typically contains, among other things, collateral posting terms and netting provisions in the event of default and/or termination event. The collateral requirements are typically calculated by netting the mark-to-market amount for each transaction under such agreement and comparing that amount to the value of the collateral currently pledged by a fund and the counterparty. Cash collateral that has been pledged to cover the obligations of a fund and cash collateral received from the counterparty, if any, is reported separately in the Statements of Assets and Liabilities as cash pledged as collateral for TBA commitments or cash received as collateral for TBA commitments, respectively. Non-cash collateral pledged by a fund, if any, is noted in the Schedules of Investments. Typically, a fund is permitted to sell, re-pledge or use the collateral it receives; however, the counterparty is not permitted to do so. To the extent amounts due to a fund are not fully collateralized, contractually or otherwise, a fund bears the risk of loss from counterparty non-performance.

Mortgage Dollar Roll Transactions: Certain funds may sell TBA mortgage-backed securities and simultaneously contract to repurchase substantially similar (i.e., same type, coupon and maturity) securities on a specific future date at an agreed upon price. During the period between the sale and repurchase, a fund is not entitled to receive interest and principal payments on the securities sold. Mortgage dollar roll transactions are treated as purchases and sales and realize gains and losses on these transactions. Mortgage dollar rolls involve the risk that the market value of the securities that a fund is required to purchase may decline below the agreed upon repurchase price of those securities.

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Notes to Financial Statements  (continued)

Repurchase Agreements: Repurchase agreements are commitments to purchase a security from a counterparty who agrees to repurchase the same security at a mutually agreed upon date and price. On a daily basis, the counterparty is required to maintain collateral subject to the agreement and in value no less than the agreed upon repurchase amount. Pursuant to the custodial undertaking associated with a tri-party repurchase arrangement, an unaffiliated third party custodian maintains accounts to hold collateral for a fund and its counterparties. Typically, a fund and counterparty are not permitted to sell, re-pledge or use the collateral absent a default by the counterparty or a fund, respectively.

In the event the counterparty defaults and the fair value of the collateral declines, a fund could experience losses, delays and costs in liquidating the collateral.

Repurchase agreements are entered into by a fund under Master Repurchase Agreements (each, an “MRA”). The MRA permits a fund, under certain circumstances including an event of default (such as bankruptcy or insolvency), to offset payables and/or receivables with collateral held by and/or posted to the counterparty. As a result, one single net payment is created. Bankruptcy or insolvency laws of a particular jurisdiction may impose restrictions on or prohibitions against such a right of offset in the event of the MRA counterparty’s bankruptcy or insolvency. Based on the terms of the MRA, a fund receives securities as collateral with a market value in excess of the repurchase price at maturity. Upon a bankruptcy or insolvency of the MRA counterparty, a fund would recognize a liability with respect to such excess collateral. The liability reflects a fund’s obligation under bankruptcy law to return the excess to the counterparty.

Reverse Repurchase Agreements: Reverse repurchase agreements are agreements with qualified third party broker dealers in which a fund sells securities to a bank or broker-dealer and agrees to repurchase the same securities at a mutually agreed upon date and price. A fund receives cash from the sale to use for other investment purposes. During the term of the reverse repurchase agreement, a fund continues to receive the principal and interest payments on the securities sold. Certain agreements have no stated maturity and can be terminated by either party at any time. Interest on the value of the reverse repurchase agreements issued and outstanding is based upon competitive market rates determined at the time of issuance. A fund may utilize reverse repurchase agreements when it is anticipated that the interest income to be earned from the investment of the proceeds of the transaction is greater than the interest expense of the transaction. Reverse repurchase agreements involve leverage risk. If a fund suffers a loss on its investment of the transaction proceeds from a reverse repurchase agreement, a fund would still be required to pay the full repurchase price. Further, a fund remains subject to the risk that the market value of the securities repurchased declines below the repurchase price. In such cases, a fund would be required to return a portion of the cash received from the transaction or provide additional securities to the counterparty.

Cash received in exchange for securities delivered plus accrued interest due to the counterparty is recorded as a liability in the Statements of Assets and Liabilities at face value including accrued interest. Due to the short-term nature of the reverse repurchase agreements, face value approximates fair value. Interest payments made by a fund to the counterparties are recorded as a component of interest expense in the Statements of Operations. In periods of increased demand for the security, a fund may receive a fee for the use of the security by the counterparty, which may result in interest income to a fund.

For the year ended September 30, 2019, the average amount of reverse repurchase agreements outstanding and the daily weighted average interest rate were as follows:

	Core Bond			High Yield Bond			Low Duration Bond
Average Borrowings	$	100,681,254		$	21,787,424		$	4,104
Daily Weighted Average Interest Rate		2.38	%		0.62	%		0.00	%

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

The market value of any securities on loan, all of which were classified as investment companies in the Funds’ Schedules of Investments, and the value of any related collateral are shown separately in the Statements of Assets and Liabilities as a component of investments at value — unaffiliated, and collateral on securities loaned at value, respectively. As of period end, any securities on loan were collateralized by cash and/or U.S. Government obligations. Cash collateral invested by the securities lending agent, BlackRock Investment Management, LLC (“BIM”), if any, is disclosed in the Schedules of Investments.

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

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Notes to Financial Statements  (continued)

As of period end, the following table is a summary of High Yield Bond securities lending agreements by counterparty which are subject to offset under an MSLA:

Counterparty	Securities Loaned at Value		Cash Collateral Received(a)			Net Amount
Goldman Sachs & Co.	$	32	$	(32	)	$	—
Jefferies & Co. LLC		4,586,885		(4,586,885	)		—
Morgan Stanley & Co. LLC		984,406		(984,406	)		—
	$	5,571,323	$	(5,571,323	)	$	—

^(a)  Collateral received in excess of the market value of securities on loan is not presented in this table. The total cash collateral received by High Yield Bond is disclosed in the Fund’s Statements of Assets and Liabilities.

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

5. DERIVATIVE FINANCIAL INSTRUMENTS

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

Futures Contracts: Futures contracts are purchased or sold to gain exposure to, or manage exposure to, changes in interest rates (interest rate risk) and changes in the value of equity securities (equity risk) or foreign currencies (foreign currency exchange rate risk).

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

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

Forward Foreign Currency Exchange Contracts: Forward foreign currency exchange contracts are entered into to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk).

A forward foreign currency exchange contract is an agreement between two parties to buy and sell a currency at a set exchange rate on a specified date. These contracts help to manage the overall exposure to the currencies in which some of the investments held by the Funds are denominated and in some cases, may be used to obtain exposure to a particular market.

The contract is marked-to-market daily and the change in market value is recorded as unrealized appreciation (depreciation) in the Statements of Assets and Liabilities. When a contract is closed, a realized gain or loss is recorded in the Statements of Operations equal to the difference between the value at the time it was opened and the value at the time it was closed. Non-deliverable forward foreign currency exchange contracts are settled with the counterparty in cash without the delivery of foreign currency. The use of forward foreign currency exchange contracts involves the risk that the value of a forward foreign currency exchange contract changes unfavorably due to movements in the value of the referenced foreign currencies, and such value may exceed the amount(s) reflected in the Statements of Assets and Liabilities. Cash amounts pledged for forward foreign currency exchange contracts are considered restricted and are included in cash pledged as collateral for OTC derivatives in the Statements of Assets and Liabilities.

Options: Certain Funds purchase and write call and put options to increase or decrease their exposure to the risks of underlying instruments, including equity risk, interest rate risk and/or commodity price risk and/or, in the case of options written, to generate gains from options premiums.

A call option gives the purchaser (holder) of the option the right (but not the obligation) to buy, and obligates the seller (writer) to sell (when the option is exercised) the underlying instrument at the exercise or strike price at any time or at a specified time during the option period. A put option gives the holder the right to sell and obligates the writer to buy the underlying instrument at the exercise or strike price at any time or at a specified time during the option period.

Premiums paid on options purchased and premiums received on options written, as well as the daily fluctuation in market value, are included in investments at value — unaffiliated and options written at value, respectively, in the Statements of Assets and Liabilities. When an instrument is purchased or sold through the exercise of an option, the premium is offset against the cost or proceeds of the underlying instrument. When an option expires, a realized gain or loss is recorded in the Statements of Operations to the extent of the premiums received or paid. When an option is closed or sold, a gain or loss is recorded in the Statements of Operations to the extent the cost of the closing transaction exceeds the premiums received or paid. When the Funds write a call option, such option is typically “covered,” meaning that they hold the underlying instrument

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Notes to Financial Statements  (continued)

subject to being called by the option counterparty. When the Funds write a put option, such option is covered by cash in an amount sufficient to cover the obligation. These amounts, which are considered restricted, are included in cash pledged as collateral for options written in the Statements of Assets and Liabilities.

• Swaptions — Certain Funds purchase and write swaptions primarily to preserve a return or spread on a particular investment or portion of the Funds’ holdings, as a duration management technique or to protect against an increase in the price of securities it anticipates purchasing at a later date. The purchaser and writer of a swaption is buying or granting the right to enter into a previously agreed upon interest rate or credit default swap agreement (interest rate risk and/or credit risk) at any time before the expiration of the option.

• Foreign currency options — Certain Funds purchase and write foreign currency options, foreign currency futures and options on foreign currency futures to gain or reduce exposure to foreign currencies (foreign currency exchange rate risk). Foreign currency options give the purchaser the right to buy from or sell to the writer a foreign currency at any time before the expiration of the option.

In purchasing and writing options, the Funds bear the risk of an unfavorable change in the value of the underlying instrument or the risk that they may not be able to enter into a closing transaction due to an illiquid market. Exercise of a written option could result in the Funds purchasing or selling a security when they otherwise would not, or at a price different from the current market value.

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

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

In a centrally cleared swap, immediately following execution of the swap contract, the swap contract is novated to a central counterparty (the “CCP”) and the Funds’ counterparty on the swap agreement becomes the CCP. The Funds are required to interface with the CCP through the broker. Upon entering into a centrally cleared swap, the Funds are required to deposit initial margin with the broker in the form of cash or securities in an amount that varies depending on the size and risk profile of the particular swap. Securities deposited as initial margin are designated in the Schedules of Investments and cash deposited is shown as cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Amounts pledged, which are considered restricted cash, are included in cash pledged for centrally cleared swaps in the Statements of Assets and Liabilities. Pursuant to the contract, the Funds agree to receive from or pay to the broker an amount of cash equal to the daily fluctuation in market value of the contract (“variation margin”). Variation margin is recorded as unrealized appreciation (depreciation) and shown as variation margin receivable (or payable) on centrally cleared swaps in the Statements of Assets and Liabilities. Payments received from (paid to) the counterparty, including at termination, are recorded as realized gains (losses) in the Statements of Operations.

• Credit default swaps — Credit default swaps are entered into to manage exposure to the market or certain sectors of the market, to reduce risk exposure to defaults of corporate and/or sovereign issuers or to create exposure to corporate and/or sovereign issuers to which a fund is not otherwise exposed (credit risk).

The Funds may either buy or sell (write) credit default swaps on single-name issuers (corporate or sovereign), a combination or basket of single-name issuers or traded indexes. Credit default swaps are agreements in which the protection buyer pays fixed periodic payments to the seller in consideration for a promise from the protection seller to make a specific payment should a negative credit event take place with respect to the referenced entity (e.g., bankruptcy, failure to pay, obligation acceleration, repudiation, moratorium or restructuring). As a buyer, if an underlying credit event occurs, the Funds will either (i) receive from the seller an amount equal to the notional amount of the swap and deliver the referenced security or underlying securities comprising the index, or (ii) receive a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index. As a seller (writer), if an underlying credit event occurs, the Funds will either pay the buyer an amount equal to the notional amount of the swap and take delivery of the referenced security or underlying securities comprising the index or pay a net settlement of cash equal to the notional amount of the swap less the recovery value of the security or underlying securities comprising the index.

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

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

• Interest rate swaps — Interest rate swaps are entered into to gain or reduce exposure to interest rates or to manage duration, the yield curve or interest rate (interest rate risk).

Interest rate swaps are agreements in which one party pays a stream of interest payments, either fixed or floating, in exchange for another party’s stream of interest payments, either fixed or floating, on the same notional amount for a specified period of time. In more complex interest rate swaps, the notional principal amount may decline (or amortize) over time.

• Forward swaps — Certain Funds enter into forward interest rate swaps and forward total return swaps. In a forward swap, each Fund and the counterparty agree to make periodic net payments beginning on a specified date or a net payment at termination.

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Notes to Financial Statements  (continued)

• Inflation swaps — Inflation swaps are entered into to gain or reduce exposure to inflation (inflation risk). In an inflation swap, one party makes fixed interest payments on a notional principal amount in exchange for another party’s variable payments based on an inflation index, such as the Consumer Price Index.

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

Master Netting Arrangements: In order to define their contractual rights and to secure rights that will help them mitigate their counterparty risk, the Funds may enter into an International Swaps and Derivatives Association, Inc. Master Agreement (“ISDA Master Agreement”) or similar agreement with their counterparties. An ISDA Master Agreement is a bilateral agreement between each Fund and a counterparty that governs certain OTC derivatives and typically contains, among other things, collateral posting terms and netting provisions in the event of a default and/or termination event. Under an ISDA Master Agreement, each Fund may, under certain circumstances, offset with the counterparty certain derivative financial instruments’ payables and/or receivables with collateral held and/or posted and create one single net payment. The provisions of the ISDA Master Agreement typically permit a single net payment in the event of default including the bankruptcy or insolvency of the counterparty. Bankruptcy or insolvency laws of a particular jurisdiction may restrict or prohibit the right of offset in bankruptcy, insolvency or other events.

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

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

For financial reporting purposes, the Funds do not offset derivative assets and derivative liabilities that are subject to netting arrangements, if any, in the Statements of Assets and Liabilities.

6. INVESTMENT ADVISORY AGREEMENT AND OTHER TRANSACTIONS WITH AFFILIATES

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

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

	Core Bond
Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.350	%
$1 Billion — $2 Billion		0.340
$2 Billion — $3 Billion		0.330
Greater than $3 Billion		0.320

	High Yield Bond
Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.500	%
$1 Billion — $2 Billion		0.450
$2 Billion — $3 Billion		0.425
$3 Billion — $25 Billion		0.400
$25 Billion — $30 Billion		0.375
Greater than $30 Billion		0.350

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Notes to Financial Statements  (continued)

	Low Duration Bond
Average Daily Net Assets	Investment Advisory Fees
First $1 Billion		0.310	%
$1 Billion — $3 Billion		0.290
$3 Billion — $5 Billion		0.280
$5 Billion — $10 Billion		0.270
Greater than $10 Billion		0.260

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

With respect to Core Bond, the Manager entered into a sub-advisory agreement, effective August 27, 2019, with BlackRock International Limited (“BIL”) and BlackRock (Singapore) Limited (“BRS”), (collectively, the “Sub-Advisers”), each an affiliate of the Manager. The Manager pays BIL and BRS for services they provide for that portion of Core Bond for which BIL and BRS, acts as sub-adviser, a monthly fee that is equal to a percentage of the investment advisory fees paid by Core Bond to the Manager.

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

	Service Fees			Distribution Fees
Service		0.25	%		—	%
Investor A		0.25			—
Investor A1		0.10			—
Investor C		0.25			0.75
Investor C1		0.25			0.55
Investor C2		0.10			0.30
Investor C3		0.25			0.65
Class R		0.25			0.25

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

For the year ended September 30, 2019, the following table shows the class specific service and distribution fees borne directly by each share class of each Fund:

	Core Bond		High Yield Bond		Low Duration Bond
Service	$	102,781	$	423,635	$	80,160
Investor A		1,123,055		3,202,887		3,285,398
Investor A1		—		—		9,216
Investor C		530,236		2,811,458		1,645,792
Investor C1		—		18,663		—
Investor C2		—		—		584
Investor C3		—		—		6,561
Class R		13,687		620,956		19,057
	$	1,769,759	$	7,077,599	$	5,046,768

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

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

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

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 139

Notes to Financial Statements  (continued)

For the year ended September 30, 2019, the following table shows the class specific administration fees borne directly by each share class of each Fund:

	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	363,477	$	1,941,826	$	936,688
Service		8,222		33,888		6,412
Investor A		89,837		256,210		262,811
Investor A1		—		—		1,843
Investor C		10,604		56,225		32,913
Investor C1		—		466		—
Investor C2		—		—		30
Investor C3		—		—		145
Class K		148,396		821,954		75,645
Class R		547		24,836		762
	$	621,083	$	3,135,405	$	1,317,249

Transfer Agent: Pursuant to written agreements, certain financial intermediaries, some of which may be affiliates, provide the Funds with sub-accounting, recordkeeping, sub-transfer agency and other administrative services with respect to servicing of underlying investor accounts. For these services, these entities receive an asset-based fee or an annual fee per shareholder account, which will vary depending on share class and/or net assets. For the year ended September 30, 2019, the Funds paid the following amounts to affiliates of BlackRock in return for these services, which are included in transfer agent — class specific in the Statements of Operations:

	Institutional		Service		Investor A		Total
Core Bond	$	370,520	$	3,333	$	5,732	$	379,585
High Yield Bond		393,664		1,850		2,265		397,779
Low Duration Bond		195,303		525		117		195,945

The Manager maintains a call center that is responsible for providing certain shareholder services to the Funds. Shareholder services include responding to inquiries and processing purchases and sales based upon instructions from shareholders. For the year ended September 30, 2019, each Fund reimbursed the Manager the following amounts for costs incurred in running the call center, which are included in transfer agent — class specific in the Statements of Operations:

	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	3,249	$	25,386	$	9,790
Service		218		463		396
Investor A		7,357		39,023		7,382
Investor A1		—		—		285
Investor C		1,345		4,707		1,470
Investor C1		—		156		—
Investor C2		—		—		93
Investor C3		—		—		35
Class K		1,385		3,444		599
Class R		39		1,551		134
	$	13,593	$	74,730	$	20,184

For the year ended September 30, 2019, the following table shows the class specific transfer agent fees borne directly by each class of each Fund:

	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	1,705,823	$	10,835,453	$	3,686,431
Service		74,074		226,192		44,890
Investor A		770,458		2,568,516		2,106,597
Investor A1		—		—		11,642
Investor C		87,752		420,701		244,427
Investor C1		—		4,978		—
Investor C2		—		—		647
Investor C3		—		—		2,471
Class K		2,862		177,476		19,632
Class R		5,473		285,865		12,020
	$	2,646,442	$	14,519,181	$	6,128,757

Other Fees: For the year ended September 30, 2019, affiliates earned underwriting discounts, direct commissions and dealer concessions on sales of each Fund’s Investor A Shares as follows:

Core Bond	$	32,578
High Yield Bond		92,721
Low Duration Bond		70,945

140 2 0 1 9    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

Notes to Financial Statements  (continued)

For the year ended September 30, 2019, affiliates received CDSCs as follows:

	Investor A		Investor C
Core Bond	$	1,064	$	789
High Yield Bond		36,868		15,820
Low Duration Bond		37,124		9,186

Expense Limitations, Waivers, Reimbursements and Recoupments: With respect to each Fund, the Manager voluntarily agreed to waive its investment advisory fees by the amount of investment advisory fees each Fund pays to the Manager indirectly through its investment in affiliated money market funds (the “affiliated money market fund waiver”). The amount of waivers and/or reimbursements of fees and expenses made pursuant to the expense limitation described below will be reduced by the amount of the affiliated money market fund waiver. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amounts waived were as follows:

Core Bond	$	23,083
High Yield Bond		278,598
Low Duration Bond		58,180

The Manager has contractually agreed to waive its investment advisory fee with respect to any portion of each Fund’s assets invested in affiliated equity and fixed-income mutual funds and affiliated exchange-traded funds that have a contractual management fee through January 31, 2020. The contractual agreement may be terminated upon 90 days’ notice by a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amounts waived in investment advisory fees pursuant to these arrangements were as follows:

High Yield Bond	$	359,509
Low Duration Bond		342,093

The Funds have incurred expenses in connection with the realignment and consolidation of the boards of trustees of certain BlackRock-advised funds. The Manager has voluntarily agreed to reimburse certain Funds for all or a portion of such expenses, which amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amount reimbursed for Low Duration Bond was $235,491.

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

	Institutional			Service			Investor A			Investor A1			Investor C			Investor C1			Investor C2			Investor C3			Class K			Class R
Core Bond		0.43	%		0.68	%		0.68	%		N/A			1.43	%		N/A			N/A			N/A			0.38	%		0.93	%
High Yield Bond		0.67			1.02			0.92			N/A			1.72			1.56	%		N/A			N/A			0.58			1.28
Low Duration
Bond		0.40			0.65			0.65			0.50	%		1.40			N/A			0.80	%		1.30	%		0.35			0.90

The Manager has agreed not to reduce or discontinue these contractual expense limitations through January 31, 2020, unless approved by the Board, including a majority of the Independent Trustees, or by a vote of a majority of the outstanding voting securities of a Fund. These amounts are included in fees waived and/or reimbursed by the Manager in the Statements of Operations. For the year ended September 30, 2019, the amounts waived and/or reimbursed by the Manager were as follows:

Core Bond	$	734,665
Low Duration Bond		1,131

These amounts waived and/or reimbursed are included in administration fees waived — class specific and transfer agent fees waived and/or reimbursed — class specific, respectively, in the Statements of Operations. For the year ended September 30, 2019, class specific expense waivers and/or reimbursements are as follows:

Administration Fees Waived	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	363,477	$	—	$	936,590
Service		8,222		—		6,412
Investor A		89,837		158,159		262,810
Investor A1		—		—		1,843
Investor C		10,604		—		32,913
Investor C1		—		71		—
Investor C2		—		—		27
Investor C3		—		—		145
Class K		148,396		—		37,019
Class R		547		—		762
	$	621,083	$	158,230	$	1,278,521

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 141

Notes to Financial Statements  (continued)

Transfer Agent Fees Waived and/or Reimbursed	Core Bond		High Yield Bond		Low Duration Bond
Institutional	$	801,774	$	—	$	786,728
Service		53,641		—		25,083
Investor A		547,401		67,279		1,297,238
Investor A1		—		—		5,961
Investor C		61,526		—		143,447
Investor C1		—		424		—
Investor C2		—		—		558
Investor C3		—		—		2,011
Class K		2,862		—		9,614
Class R		4,108		—		9,663
	$	1,471,312	$	67,703	$	2,280,303

With respect to the contractual expense limitation, if during a Fund’s fiscal year the operating expenses of a share class, that at any time during the prior two fiscal years received a waiver and/or reimbursement from the Manager, are less than the current expense limitation for that share class, the Manager is entitled to be reimbursed by such share class up to the lesser of: (a) the amount of fees waived and/or expenses reimbursed during those prior two fiscal years under the agreement and (b) an amount not to exceed either the current expense limitation of that share class or the expense limitation of the share class in effect at the time that the share class received the applicable waiver and/or reimbursement, provided that:

(1) each Fund, of which the share class is a part, has more than $50 million in assets for the fiscal year, and

(2) the Manager or an affiliate continues to serve as a Fund’s investment adviser or administrator.

This repayment applies only to the contractual expense limitation on net expenses and does not apply to the contractual investment advisory fee waiver described above or any voluntary waivers that may be in effect from time to time.

For the year ended September 30, 2019, the Manager recouped the following class specific waivers and/or reimbursements previously recorded by the Funds:

	Class K
High Yield Bond	$	6,708

As of September 30, 2019, the fund level and class specific waivers and/or reimbursements subject to possible future recoupment under the expense limitation agreement are as follows:

	Expiring September 30,
	2020		2021
Core Bond
Fund Level	$	1,018,164	$	734,665
Institutional		894,920		1,165,251
Service		83,608		61,863
Investor A		655,762		637,238
Investor C		69,990		72,130
Class K		149,611		151,258
Class R		5,691		4,655
High Yield Bond
Investor A		364,355		225,438
Investor C1		—		495
Low Duration Bond
Fund Level		14,318		1,131
Institutional		780,528		1,723,318
Service		35,327		31,495
Investor A		1,578,009		1,560,048
Investor A1		9,457		7,804
Investor C		225,545		176,360
Investor C2		978		585
Investor C3		5,082		2,156
Class K		22,813		46,633
Class R		11,332		10,425

142 2 0 1 9    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

Notes to Financial Statements  (continued)

The following fund level and class specific waivers and/or reimbursements previously recorded by the Funds, which were subject to recoupment by the Manager, expired on September 30, 2019:

	Core Bond		High Yield Bond		Low Duration Bond
Fund Level	$	1,395,106	$	—	$	1,360,340
Institutional		1,665,141		—		1,065,697
Service		57,664		—		48,650
Investor A		666,882		922,943		1,139,307
Investor A1		—		—		11,425
Investor C		100,310		—		375,156
Investor C2		—		—		4,355
Investor C3		—		—		22,086
Class K		141,557		—		100,254
Class R		6,421		—		14,220

Securities Lending: The U.S. Securities and Exchange Commission (“SEC”) has issued an exemptive order which permits BIM, an affiliate of the Manager, to serve as securities lending agent for the Funds, subject to applicable conditions. As securities lending agent, BIM bears all operational costs directly related to securities lending. High Yield Bond is responsible for expenses in connection with the investment of cash collateral received for securities on loan (the “collateral investment expenses”). The cash collateral is invested in a private investment company managed by the Manager or its affiliates. However, BIM has agreed to cap the collateral investment expenses of the private investment company to an annual rate of 0.04%. The investment adviser to the private investment company will not charge any advisory fees with respect to shares purchased by the High Yield Bond. The private investment company in which the cash collateral has been invested may, under certain circumstances, impose a liquidity fee of up to 2% of the value withdrawn or temporarily restrict withdrawals for up to 10 business days during a 90 day period, in the event that the private investment company’s weekly liquid assets fall below certain thresholds.

Securities lending income is equal to the total of income earned from the reinvestment of cash collateral, net of fees and other payments to and from borrowers of securities, and less the collateral investment expenses. High Yield Bond retains a portion of securities lending income and remits a remaining portion to BIM as compensation for its services as securities lending agent.

Pursuant to the current securities lending agreement, High Yield Bond retains 73.5% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

In addition, commencing the business day following the date that the aggregate securities lending income earned across the BlackRock Fixed-Income Complex in a calendar year exceeds a specified threshold, High Yield Bond, pursuant to the securities lending agreement, will retain for the remainder of that calendar year securities lending income in an amount equal to 80% of securities lending income (which excludes collateral investment expenses), and this amount retained can never be less than 70% of the total of securities lending income plus the collateral investment expenses.

Prior to January 1, 2019, High Yield Bond retained 71.5% of securities lending income (which excluded collateral investment expenses) and the amount retained could never be less than 65% of the total of securities lending income plus the collateral investment expenses. In addition, commencing the business day following the date that the aggregate securities lending income earned across a complex of open-end funds referred to as the Equity-Bond Complex in a calendar year exceeded a specified threshold, the Fund would retain for the remainder of that calendar year 75% of securities lending income (which excluded collateral investment expenses), and the amount retained could never be less than 65% of the total of securities lending income plus the collateral investment expenses.

The share of securities lending income earned by High Yield Bond is shown as securities lending income — affiliated — net in the Consolidated Statement of Operations. For the year ended September 30, 2019, High Yield Bond paid BIM $114,119 for securities lending agent services.

Interfund Lending: In accordance with an exemptive order (the “Order”) from the SEC, each Fund may participate in a joint lending and borrowing facility for temporary purposes (the “Interfund Lending Program”), subject to compliance with the terms and conditions of the Order, and to the extent permitted by each Fund’s investment policies and restrictions. Each Fund is currently permitted to borrow under the Interfund Lending Program.

A lending BlackRock fund may lend in aggregate up to 15% of its net assets, but may not lend more than 5% of its net assets to any one borrowing fund through the Interfund Lending Program. A borrowing BlackRock fund may not borrow through the Interfund Lending Program or from any other source more than 33 1/3% of its total assets (or any lower threshold provided for by the fund’s investment restrictions). If a borrowing BlackRock fund’s total outstanding borrowings exceed 10% of its total assets, each of its outstanding interfund loans will be subject to collateralization of at least 102% of the outstanding principal value of the loan. All interfund loans are for temporary or emergency purposes and the interest rate to be charged will be the average of the highest current overnight repurchase agreement rate available to a lending fund and the bank loan rate, as calculated according to a formula established by the Board.

During the year ended September 30, 2019, the Funds did not participate in the Interfund Lending Program.

Trustees and Officers: Certain trustees and/or officers of the Trusts are trustees and/or officers of BlackRock or its affiliates. The Funds reimburse the Manager for a portion of the compensation paid to the Funds’ Chief Compliance Officer, which is included in Trustees and Officer in the Statements of Operations.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 143

Notes to Financial Statements  (continued)

Other Transactions: The Funds may purchase securities from, or sell securities to, an affiliated fund provided the affiliation is due solely to having a common investment adviser, common officers, or common trustees. For the year ended September 30, 2019, the purchase and sale transactions and any net realized gains (losses) with affiliated funds in compliance with Rule 17a-7 under the 1940 Act were as follows:

	Purchases		Sales		Net Realized Gain (Loss)
Core Bond	$	5,948,031	$	2,165,431	$	43,277
High Yield Bond		428,014,480		379,523,183		1,242,803
Low Duration Bond		373,109		—		—

During the year ended September 30, 2019, Low Duration Bond received a reimbursement of $7,407 from an affiliate, which is included in payment by affiliate in the Statements of Operations, related to an operating event.

7. PURCHASES AND SALES

For the year ended September 30, 2019, purchases and sales of investments, including paydowns, mortgage dollar rolls and excluding short-term securities, were as follows:

	Core Bond		High Yield Bond		Low Duration Bond
Purchases
Non-U.S. Government Securities	$	22,665,327,298	$	17,101,101,733	$	10,034,141,185
U.S. Government Securities		855,497,636		—		3,412,528,874
	$	23,520,824,934	$	17,101,101,733	$	13,446,670,059
Sales
Non-U.S. Government Securities	$	22,108,575,144	$	15,618,992,201	$	8,521,620,237
U.S. Government Securities		904,362,079		—		3,098,121,237
	$	23,012,937,223	$	15,618,992,201	$	11,619,741,474

For the year ended September 30, 2019, purchases and sales related to mortgage dollar rolls were as follows:

	Core Bond		Low Duration Bond
Purchases	$	6,823,902,964	$	2,373,406,003
Sales		6,825,022,831		2,391,494,660

8. INCOME TAX INFORMATION

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

Each Fund files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The statute of limitations on each Fund’s U.S. federal tax returns generally remains open for each of the four years ended September 30, 2019. The statutes of limitations on each Fund’s state and local tax returns may remain open for an additional year depending upon the jurisdiction.

Management has analyzed tax laws and regulations and their application to the Funds as of September 30, 2019, inclusive of the open tax return years, and does not believe that there are any uncertain tax positions that require recognition of a tax liability in the Funds’ financial statements.

U.S. GAAP requires that certain components of net assets be adjusted to reflect permanent differences between financial and tax reporting. These reclassifications have no effect on net assets or net asset values per share. As of September 30, 2019, the following permanent differences attributable to non-deductible expenses, the expiration of capital loss carryforwards, and in-kind redemptions, were reclassified to the following accounts:

	Core Bond			High Yield Bond
Paid-in capital	$	(4,533,965	)	$	(7,007,425	)
Accumulated earnings		4,533,965			7,007,425

144 2 0 1 9    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

Notes to Financial Statements  (continued)

The tax character of distributions paid was as follows:

	Ordinary Income		Return of Capital		Total
Core Bond
09/30/19	$	92,340,733	$	—	$	92,340,733
09/30/18		82,970,202		—		82,970,202
High Yield Bond
09/30/19		935,424,039		—		935,424,039
09/30/18		915,943,115		—		915,943,115
Low Duration Bond
09/30/19		170,514,300		3,196,913		173,711,213
09/30/18		114,684,017		11,055,085		125,739,102

As of September 30, 2019, the tax components of accumulated net earnings (losses) were as follows:

	Undistributed Ordinary Income		Non-expiring Capital Loss Carryforward			Net Unrealized Gains (Losses)(a)		Total
Core Bond	$	446,389	$	(21,019,301	)	$	109,714,579	$	89,141,667
High Yield Bond		36,349,023		(899,114,199	)		258,882,005		(603,883,171	)
Low Duration Bond		—		(75,779,519	)		48,901,942		(26,877,577	)

^(a)  Amounts available to offset future realized capital gains.

^(b)  The differences between book-basis and tax-basis net unrealized gains (losses) were attributable primarily to the tax deferral of losses on wash sales and straddles, the deferral of compensation to trustees, the timing and recognition of partnership income, the realization for tax purposes of unrealized gains/losses on certain futures, options, and foreign currency contracts, unrealized gain on stock of passive foreign investment companies, the classification of investments and the accounting for swap agreements.

During the year ended September 30, 2019, the Funds listed below utilized the following amounts of their respective capital loss carryforward:

	Core Bond
Amount utilized	$	60,625,131

As of September 30, 2019, gross unrealized appreciation and depreciation for investments and derivatives based on cost for U.S. federal income tax purposes were as follows:

	Core Bond			High Yield Bond			Low Duration Bond
Tax cost	$	4,051,598,515		$	16,996,168,648		$	7,941,237,496
Gross unrealized appreciation	$	122,785,074		$	586,951,011		$	84,602,441
Gross unrealized depreciation		(12,870,197	)		(322,522,992	)		(30,489,252	)
Net unrealized appreciation	$	109,914,877		$	264,428,019		$	54,113,189

9. BANK BORROWINGS

The Trust, on behalf of the Funds, along with certain other funds managed by the Manager and its affiliates (“Participating Funds”), is a party to a 364-day, $2.25 billion credit agreement with a group of lenders. Under this agreement, the Funds may borrow to fund shareholder redemptions. Excluding commitments designated for certain individual funds, the Participating Funds, including the Funds, can borrow up to an aggregate commitment amount of $1.75 billion at any time outstanding, subject to asset coverage and other limitations as specified in the agreement. The credit agreement has the following terms: a fee of 0.10% per annum on unused commitment amounts and interest at a rate equal to the higher of (a) one-month LIBOR (but, in any event, not less than 0.00%) on the date the loan is made plus 0.80% per annum or (b) the Fed Funds rate (but, in any event, not less than 0.00%) in effect from time to time plus 0.80% per annum on amounts borrowed. The agreement expires in April 2020 unless extended or renewed. Prior to April 18, 2019, Participating Funds paid an upfront commitment fee of 0.02% on the total commitment amounts, in addition to administration, legal and arrangement fees, which are included in miscellaneous expenses in the Statements of Operations. These fees were allocated among such funds based upon portions of the aggregate commitment available to them and relative net assets of Participating Funds. During the year ended September 30, 2019, the Funds did not borrow under the credit agreement.

10. PRINCIPAL RISKS

In the normal course of business, certain Funds invest in securities or other instruments and may enter into certain transactions, and such activities subject each Fund to various risks, including among others, fluctuations in the market (market risk) or failure of an issuer to meet all of its obligations. The value of securities or other instruments may also be affected by various factors, including, without limitation: (i) the general economy; (ii) the overall market as well as local, regional or global political and/or social instability; (iii) regulation, taxation or international tax treaties between various countries; or (iv) currency, interest rate and price fluctuations. Each Fund’s prospectus provides details of the risks to which each Fund is subject.

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 145

Notes to Financial Statements  (continued)

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

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

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

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

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

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

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

For OTC options purchased, each Fund bears the risk of loss in the amount of the premiums paid plus the positive change in market values net of any collateral held by the Funds should the counterparty fail to perform under the contracts. Options written by the Funds do not typically give rise to counterparty credit risk, as options written generally obligate the Funds, and not the counterparty, to perform. The Funds may be exposed to counterparty credit risk with respect to options written to the extent each Fund deposits collateral with its counterparty to a written option.

With exchange-traded options purchased, futures and centrally cleared swaps, there is less counterparty credit risk to the Funds since the exchange or clearinghouse, as counterparty to such instruments, guarantees against a possible default. The clearinghouse stands between the buyer and the seller of the contract; therefore, credit risk is limited to failure of the clearinghouse. While offset rights may exist under applicable law, a Fund does not have a contractual right of offset against a clearing broker or clearinghouse in the event of a default (including the bankruptcy or insolvency). Additionally, credit risk exists in exchange-traded futures and centrally cleared swaps with respect to initial and variation margin that is held in a clearing broker’s customer accounts. While clearing brokers are required to segregate customer margin from their own assets, in the event that a clearing broker becomes insolvent or goes into bankruptcy and at that time there is a shortfall in the aggregate amount of margin held by the clearing broker for all its clients, typically the shortfall would be allocated on a pro rata basis across all the clearing broker’s customers, potentially resulting in losses to the Funds.

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

Certain Funds may invest in securities that are rated below investment grade quality (sometimes called “junk bonds”), which are predominantly speculative, have greater credit risk and generally are less liquid than, and have more volatile prices than, higher quality securities.

Certain Funds invest a significant portion of their assets in securities backed by commercial or residential mortgage loans or in issuers that hold mortgage and other asset-backed securities. Investment percentages in these securities are presented in the Schedules of Investments. Changes in economic conditions, including delinquencies and/or defaults on assets underlying these securities, can affect the value, income and/or liquidity of such positions.

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Notes to Financial Statements  (continued)

11. CAPITAL SHARE TRANSACTIONS

Transactions in capital shares for each class were as follows:

	Year Ended 09/30/19						Year Ended 09/30/18
Core Bond	Shares			Amount			Shares			Amount
Institutional
Shares sold		58,954,554		$	562,957,286			48,864,216		$	461,412,091
Shares issued in reinvestment of distributions		5,225,917			49,860,865			4,670,910			43,949,305
Shares redeemed		(59,622,838	)		(568,545,951	)		(47,337,773	)		(445,092,552	)
Net increase		4,557,633		$	44,272,200			6,197,353		$	60,268,844
Service
Shares sold		747,668		$	7,155,368			835,063		$	7,863,521
Shares issued in reinvestment of distributions		118,602			1,128,634			139,083			1,309,412
Shares redeemed		(2,150,888	)		(20,174,665	)		(1,356,404	)		(12,719,786	)
Net decrease		(1,284,618	)	$	(11,890,663	)		(382,258	)	$	(3,546,853	)
Investor A
Shares sold		13,311,539		$	126,824,365			10,063,854		$	95,387,559
Shares issued in reinvestment of distributions		1,256,238			12,004,462			1,128,590			10,637,313
Shares redeemed		(11,149,529	)		(105,604,612	)		(13,725,459	)		(129,864,709	)
Net increase (decrease)		3,418,248		$	33,224,215			(2,533,015	)	$	(23,839,837	)
Investor C
Shares sold		1,179,700		$	11,240,172			1,494,279		$	13,985,191
Shares issued in reinvestment of distributions		103,735			984,358			103,614			972,869
Shares redeemed		(2,903,618	)		(27,358,066	)		(2,381,204	)		(22,358,952	)
Net decrease		(1,620,183	)	$	(15,133,536	)		(783,311	)	$	(7,400,892	)
Class K
Shares sold		16,217,659		$	155,733,531			11,779,731		$	110,535,607
Shares issued in reinvestment of distributions		2,295,745			21,971,817			2,000,052			18,876,186
Shares redeemed		(10,702,500	)		(101,646,792	)		(16,063,679	)		(150,890,070	)
Net increase (decrease)		7,810,904		$	76,058,556			(2,283,896	)	$	(21,478,277	)
Class R
Shares sold		48,863		$	463,854			75,189		$	707,644
Shares issued in reinvestment of distributions		7,247			69,144			7,262			68,532
Shares redeemed		(98,276	)		(928,414	)		(170,668	)		(1,621,935	)
Net decrease		(42,166	)	$	(395,416	)		(88,217	)	$	(845,759	)
Total Net Increase		12,839,818		$	126,135,356			126,656		$	3,157,226
High Yield Bond
Institutional
Shares sold		1,013,381,817		$	7,603,463,797			586,349,409		$	4,530,072,111
Shares issued in reinvestment of distributions		69,159,001			519,713,900			60,347,512			465,690,685
Shares redeemed		(951,987,667	)		(7,118,339,335	)		(624,073,337	)		(4,827,053,831	)
Net increase		130,553,151		$	1,004,838,362			22,623,584		$	168,708,965
Service
Shares sold		26,925,349		$	202,663,801			14,655,447		$	112,931,159
Shares issued in reinvestment of distributions		1,283,402			9,634,956			1,481,742			11,444,802
Shares redeemed		(31,038,176	)		(233,953,036	)		(22,694,030	)		(174,612,474	)
Net decrease		(2,829,425	)	$	(21,654,279	)		(6,556,841	)	$	(50,236,513	)
Investor A
Shares sold		89,269,598		$	668,379,422			65,901,722		$	509,696,743
Shares issued from conversion		—			—			58,722			457,442
Shares issued in reinvestment of distributions		8,705,424			65,323,251			9,119,150			70,395,875
Shares redeemed		(97,803,313	)		(732,231,738	)		(115,276,588	)		(891,159,372	)
Net increase (decrease)		171,709		$	1,470,935			(40,196,994	)	$	(310,609,312	)
Investor B
Shares sold		—		$	—			1		$	14
Shares issued in reinvestment of distributions		—			—			201			1,571
Shares converted(a)		—			—			(26,195	)		(204,319	)
Shares redeemed		—			—			(977	)		(7,670	)
Net decrease		—		$	—			(26,970	)	$	(210,404	)

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 147

Notes to Financial Statements  (continued)

	Year Ended 09/30/19						Year Ended 09/30/18
	Shares			Amount			Shares			Amount
Investor B1
Shares sold		—		$	—			2		$	(156	)
Shares issued in reinvestment of distributions		—			—			305			2,390
Shares converted(a)		—			—			(32,493	)		(253,123	)
Shares redeemed		—			—			(7,526	)		(58,645	)
Net decrease		—		$	—			(39,712	)	$	(309,534	)
Investor C
Shares sold		5,808,760		$	43,856,756			5,685,024		$	44,078,825
Shares issued in reinvestment of distributions		1,690,358			12,686,090			2,016,261			15,585,289
Shares redeemed		(16,231,675	)		(121,962,508	)		(17,963,106	)		(139,096,212	)
Net decrease		(8,732,557	)	$	(65,419,662	)		(10,261,821	)	$	(79,432,098	)
Investor C1
Shares sold		14,297		$	106,914			13,954		$	107,955
Shares issued in reinvestment of distributions		15,555			116,637			68,229			527,643
Shares redeemed		(1,080,338	)		(8,132,021	)		(428,848	)		(3,319,224	)
Net decrease		(1,050,486	)	$	(7,908,470	)		(346,665	)	$	(2,683,626	)
Class K
Shares sold		296,089,454		$	2,234,441,701			185,109,008		$	1,435,151,275
Shares issued in reinvestment of distributions		29,816,561			224,062,721			30,920,042			238,861,237
Shares redeemed		(283,213,492	)		(2,120,629,398	)		(337,131,550	)		(2,613,300,234	)
Net increase (decrease)		42,692,523		$	337,875,024			(121,102,500	)	$	(939,287,722	)
Class R
Shares sold		3,653,480		$	27,476,499			4,081,198		$	31,570,362
Shares issued in reinvestment of distributions		893,735			6,703,839			865,499			6,678,105
Shares redeemed		(4,938,196	)		(36,987,751	)		(5,111,967	)		(39,495,365	)
Net decrease		(390,981	)	$	(2,807,413	)		(165,270	)	$	(1,246,898	)
Total Net Increase (Decrease)		160,413,934		$	1,246,394,497			(156,073,189	)	$	(1,215,307,142	)
Low Duration Bond
Institutional
Shares sold		255,637,955		$	2,438,891,645			226,980,442		$	2,165,652,977
Shares issued in reinvestment of distributions		12,760,621			121,859,736			8,912,201			84,833,324
Shares redeemed		(162,007,772	)		(1,541,598,872	)		(106,092,654	)		(1,010,911,223	)
Net increase		106,390,804		$	1,019,152,509			129,799,989		$	1,239,575,078
Service
Shares sold		1,362,027		$	12,939,297			736,550		$	7,014,649
Shares issued in reinvestment of distributions		82,838			790,447			70,741			673,866
Shares redeemed		(1,300,321	)		(12,422,888	)		(1,655,138	)		(15,771,867	)
Net increase (decrease)		144,544		$	1,306,856			(847,847	)	$	(8,083,352	)
Investor A
Shares sold		40,678,905		$	387,195,143			34,251,555		$	327,011,931
Shares issued in reinvestment of distributions		3,279,253			31,288,962			2,778,801			26,461,888
Shares redeemed		(40,973,256	)		(390,594,187	)		(39,099,997	)		(372,645,094	)
Net increase (decrease)		2,984,902		$	27,889,918			(2,069,641	)	$	(19,171,275	)
Investor A1
Shares sold		13,578		$	129,648			13,543		$	128,840
Shares issued in reinvestment of distributions		18,921			180,655			17,269			164,600
Shares redeemed		(140,020	)		(1,342,934	)		(144,663	)		(1,383,566	)
Net decrease		(107,521	)	$	(1,032,631	)		(113,851	)	$	(1,090,126	)
Investor C
Shares sold		3,973,118		$	37,653,643			1,103,649		$	10,521,418
Shares issued in reinvestment of distributions		253,439			2,416,147			247,205			2,353,382
Shares redeemed		(6,590,562	)		(62,681,598	)		(8,409,998	)		(80,184,616	)
Net decrease		(2,364,005	)	$	(22,611,808	)		(7,059,144	)	$	(67,309,816	)
Investor C2
Shares sold		—		$	—			17		$	166
Shares issued in reinvestment of distributions		353			3,354			1,441			13,726
Shares redeemed		(59,579	)		(563,951	)		(29,331	)		(279,223	)
Net decrease		(59,226	)	$	(560,597	)		(27,873	)	$	(265,331	)

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Notes to Financial Statements  (continued)

	Year Ended 09/30/19						Year Ended 09/30/18
	Shares			Amount			Shares			Amount
Investor C3
Shares sold		18,194		$	172,285			2,780		$	26,536
Shares issued in reinvestment of distributions		1,370			13,039			2,835			26,991
Shares redeemed		(148,549	)		(1,404,724	)		(56,862	)		(542,348	)
Net decrease		(128,985	)	$	(1,219,400	)		(51,247	)	$	(488,821	)
Class K
Shares sold		43,738,804		$	417,163,489			18,291,643		$	173,880,864
Shares issued in reinvestment of distributions		1,074,665			10,261,330			518,270			4,927,624
Shares redeemed		(18,840,509	)		(179,698,612	)		(8,238,963	)		(78,334,082	)
Net increase		25,972,960		$	247,726,207			10,570,950		$	100,474,406
Class R
Shares sold		233,380		$	2,232,441			133,977		$	1,277,899
Shares issued in reinvestment of distributions		8,783			83,723			9,157			87,174
Shares redeemed		(306,773	)		(2,923,327	)		(166,426	)		(1,584,439	)
Net decrease		(64,610	)	$	(607,163	)		(23,292	)	$	(219,366	)
Total Net Increase		132,768,863		$	1,270,043,891			130,178,044		$	1,243,421,397

^(a)  Effective December 27, 2017, Investor B and Investor B1 Shares were converted into Investor A Shares.

12. REGULATION S-X AMENDMENTS

On August 17, 2018, the SEC adopted amendments to certain disclosure requirements in Securities Act Release No. 33-10532, Disclosure Update and Simplification. The Funds have adopted the amendments pertinent to Regulation S-X in this shareholder report. The amendments impacted certain disclosure presentation on the Statements of Assets and Liabilities, Statements of Changes in Net Assets and Notes to Financial Statements.

Prior year distribution information and undistributed (distributions in excess of) net investment income in the Statements of Changes in Net Assets has been modified to conform to the current year presentation in accordance with the Regulation S-X changes.

Distributions for the year ended September 30, 2018 were classified as follows:

Fund Name	Share Class	Net Investment Income			Return of Capital
Core Bond	Institutional	$	(49,176,129	)	$	—
	Service		(1,313,225	)		—
	Investor A		(11,068,762	)		—
	Investor C		(1,076,563	)		—
	Class K		(20,266,346	)		—
	Class R		(69,177	)		—
High Yield Bond	Institutional		(531,199,992	)		—
	Service		(11,541,240	)		—
	Investor A		(78,539,545	)		—
	Investor B		(2,353	)		—
	Investor B1		(3,549	)		—
	Investor C		(17,220,416	)		—
	Investor C1		(533,144	)		—
	Class K		(270,216,627	)		—
	Class R		(6,686,249	)		—
Low Duration Bond	Institutional		(81,907,734	)		(7,528,485	)
	Service		(610,577	)		(64,339	)
	Investor A		(24,927,180	)		(2,610,782	)
	Investor A1		(203,510	)		(19,768	)
	Investor C		(2,339,410	)		(406,288	)
	Investor C2		(12,375	)		(1,416	)
	Investor C3		(23,728	)		(3,788	)
	Class K		(4,580,840	)		(410,717	)
	Class R		(78,663	)		(9,502	)

N O T E S   T O   F I N A N C I A L   S T A T E M E N T S 149

Notes to Financial Statements  (continued)

Undistributed (distributions in excess of) net investment income as of September 30, 2018 was as follows:

	Undistributed (Distributions in Excess of) Net Investment Income
Core Bond	$	(898,632	)
High Yield Bond		2,960,907
Low Duration Bond		(9,017,365	)

13. SUBSEQUENT EVENTS

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

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Report of Independent Registered Public Accounting Firm

To the Shareholders of BlackRock Core Bond Portfolio, BlackRock High Yield Bond Portfolio and BlackRock Low Duration Bond Portfolio and the Board of Trustees of BlackRock Funds V:

Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statements of assets and liabilities of BlackRock Core Bond Portfolio and BlackRock Low Duration Bond Portfolio of BlackRock Funds V, including the schedules of investments, as of September 30, 2019, the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, the financial highlights for each of the five years in the period then ended, and the related notes. We have also audited the accompanying consolidated statement of assets and liabilities of BlackRock High Yield Bond Portfolio of BlackRock Funds V (collectively with BlackRock Core Bond Portfolio and BlackRock Low Duration Bond Portfolio, the “Funds”), including the consolidated schedule of investments, as of September 30, 2019, the related consolidated statement of operations for the year then ended, the consolidated statements of changes in net assets for each of the two years in the period then ended, the consolidated financial highlights for each of the five years in the period then ended, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Funds as of September 30, 2019, and the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

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

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

Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of September 30, 2019, by correspondence with the custodian, agent banks and brokers; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.

Deloitte & Touche LLP

Boston, Massachusetts

November 20, 2019

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

R E P O R T   O F   I N D E P E N D E N T   R E G I S T E R E D   P U B L I C   A C C O U N T I N G   F I R M 151

Important Tax Information  (unaudited)

During the fiscal year ended September 30, 2019, the following information is provided with respect to the ordinary income distributions paid by the Funds:

	Payable Dates	Core Bond			High Yield Bond			Low Duration Bond
Qualified Dividend Income for Individuals(a)	October 2018		—	%		3.60	%		—	%
	November 2018 — December 2018		—			3.50			—
	January 2019 — September 2019		—			2.03			—
Dividends Qualifying for the Dividends Received Deductions for Corporations(a)	October 2018 — September 2019		—			1.13			—
Federal Obligation Interest(b)	October 2018 — September 2019		17.00			0.00			8.53
Interest-Related Dividends for Non-U.S. Residents(c)	October 2018 — December 2018		97.25			69.04			100.00
	January 2019 — September 2019		78.60			76.13			67.78

^(a) The Funds hereby designate the percentage indicated above or the maximum amount allowable by law.

^(b) The law varies in each state as to whether and what percentage of dividend income attributable to federal obligations is exempt from state income tax. We recommend that you consult your tax advisor to determine if any portion of the dividends you received is exempt from state income taxes.

^(c) Represents the portion of the taxable ordinary income dividends eligible for exemption from U.S. withholding tax for nonresident aliens and foreign corporations.

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Disclosure of Investment Advisory Agreement

The Board of Trustees (the “Board,” the members of which are referred to as “Board Members”) of BlackRock Funds V (the “Trust”) met in person on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”) to consider the approval of the investment advisory agreement (the “Advisory Agreement” or the “Agreement”) between the Trust, on behalf of BlackRock Core Bond Portfolio (the “Core Bond Portfolio”), BlackRock High Yield Bond Portfolio (the “High Yield Bond Portfolio”) and BlackRock Low Duration Bond Portfolio (the “Low Duration Bond Portfolio” and together with the Core Bond Portfolio and the High Yield Bond Portfolio, the “Funds” and each, a “Fund”), each a series of the Trust, and BlackRock Advisors, LLC (the “Manager” or “BlackRock”), each Fund’s investment advisor.

Activities and Composition of the Board

On the date of the June Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). The Board Members are responsible for the oversight of the operations of each Fund and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Board Members have retained independent legal counsel to assist them in connection with their duties. The Co-Chairs of the Board are Independent Board Members. The Board has established five standing committees: an Audit Committee, a Governance and Nominating Committee, a Compliance Committee, a Performance Oversight Committee and an Executive Committee, each of which is chaired by an Independent Board Member and composed of Independent Board Members (except for the Executive Committee, which also has one interested Board Member).

The Agreement

Consistent with the requirements of the 1940 Act, the Board considers the continuation of the Agreement on an annual basis. The Board has four quarterly meetings per year, each typically extending for two days, and additional in-person and telephonic meetings throughout the year, as needed. While the Board also has a fifth one-day meeting to consider specific information surrounding the renewal of the Agreement, the Board’s consideration entails a year-long deliberative process whereby the Board and its committees assess BlackRock’s services to each Fund. In particular, the Board assessed, among other things, the nature, extent and quality of the services provided to each Fund by BlackRock, BlackRock’s personnel and affiliates, including (as applicable): investment management; accounting, administrative and shareholder services; oversight of each Fund’s service providers; risk management and oversight; legal and compliance services; and ability to meet applicable legal and regulatory requirements. Throughout the year, including during the contract renewal process, the Independent Board Members were advised by independent legal counsel, and met with independent legal counsel in various executive sessions outside of the presence of management.

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

Board Considerations in Approving the Agreement

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

At the May Meeting, the Board reviewed materials relating to its consideration of the Agreement. As a result of the discussions that occurred during the May Meeting, and as a culmination of the Board’s year-long deliberative process, the Board presented BlackRock with questions and requests for additional information. BlackRock responded to these requests with additional written information in advance of the June Meeting. Topics covered included: (a) the methodology for measuring estimated fund profitability; (b) economies of scale; (c) fund expenses and potential fee waivers; and (d) differences in services provided and management fees between open-end funds and other product channels.

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Disclosure of Investment Advisory Agreement  (continued)

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

The Board also considered other matters it deemed important to the approval process, such as other payments made to BlackRock or its affiliates relating to securities lending and cash management, and BlackRock’s services related to the valuation and pricing of Fund portfolio holdings. The Board noted the willingness of BlackRock personnel to engage in open, candid discussions with the Board. The Board did not identify any particular information as determinative, and each Board Member may have attributed different weights to the various items considered.

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

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

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

B. The Investment Performance of each Fund and BlackRock: The Board, including the Independent Board Members, also reviewed and considered the performance history of each Fund. In preparation for the May Meeting, the Board was provided with reports independently prepared by Broadridge, which included a comprehensive analysis of each Fund’s performance as of December 31, 2018. Broadridge ranks funds in quartiles, ranging from first to fourth, where first is the most desirable quartile position and fourth is the least desirable. In connection with its review, the Board received and reviewed information regarding the investment performance of each Fund as compared to its Performance Peers. The Board and its Performance Oversight Committee regularly review, and meet with Fund management to discuss, the performance of each Fund throughout the year.

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

The Board noted that for the one-, three- and five-year periods reported, the Core Bond Portfolio ranked in the third, third and second quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the Core Bond Portfolio’s underperformance during the applicable periods.

The Board noted that for the one-, three- and five-year periods reported, the High Yield Bond Portfolio ranked in the third, second and first quartiles, respectively, against its Performance Peers. The Board and BlackRock reviewed the High Yield Bond Portfolio’s underperformance during the applicable periods.

The Board noted that for each of the one-, three- and five-year periods reported, the Low Duration Bond Portfolio ranked in the second quartile against its Performance Peers.

C. Consideration of the Advisory/Management Fees and the Estimated Cost of the Services and Estimated Profits Realized by BlackRock and its Affiliates from their Relationship with each Fund: The Board, including the Independent Board Members, reviewed each Fund’s contractual management fee rate compared with those of its Expense Peers. The contractual management fee rate represents a combination of the advisory fee and any administrative fees, before taking into account any reimbursements or fee waivers. The Board also compared each Fund’s total expense ratio, as well as its actual management fee rate, to those of its Expense Peers. The total expense ratio represents a fund’s total net operating expenses, including any 12b-1 or non 12b-1 service fees. The total expense ratio gives effect to any expense reimbursements or fee waivers that benefit a fund, and the actual management fee rate gives effect to any management fee reimbursements or waivers that benefit a fund. The Board considered the services provided and the fees charged by BlackRock and its affiliates to other types of clients with similar investment mandates, as applicable, including institutional accounts and sub-advised mutual funds (including mutual funds sponsored by third parties).

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Disclosure of Investment Advisory Agreement  (continued)

The Board received and reviewed statements relating to BlackRock’s financial condition. The Board reviewed BlackRock’s profitability methodology and was also provided with an estimated profitability analysis that detailed the revenues earned and the expenses incurred by BlackRock for services provided to each Fund. The Board reviewed BlackRock’s estimated profitability with respect to each Fund and other funds the Board currently oversees for the year ended December 31, 2018 compared to available aggregate estimated profitability data provided for the prior two years. The Board reviewed BlackRock’s estimated profitability with respect to certain other U.S. fund complexes managed by the Manager and/or its affiliates. The Board reviewed BlackRock’s assumptions and methodology of allocating expenses in the estimated profitability analysis, noting the inherent limitations in allocating costs among various advisory products. The Board recognized that profitability may be affected by numerous factors including, among other things, fee waivers and expense reimbursements by the Manager, the types of funds managed, precision of expense allocations and business mix. The Board thus recognized that calculating and comparing profitability at individual fund levels is difficult.

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

In addition, the Board considered the estimated cost of the services provided to each Fund by BlackRock, and BlackRock’s and its affiliates’ estimated profits relating to the management of each Fund and the other funds advised by BlackRock and its affiliates. As part of its analysis, the Board reviewed BlackRock’s methodology in allocating its costs of managing the Funds, to each Fund. The Board considered whether BlackRock has the financial resources necessary to attract and retain high quality investment management personnel to perform its obligations under the Agreement and to continue to provide the high quality of services that is expected by the Board. The Board further considered factors including but not limited to BlackRock’s commitment of time, assumption of risk, and liability profile in servicing each Fund, including in contrast to what is required of BlackRock with respect to other products with similar investment mandates across the open-end fund, ETF, closed-end fund, sub-advised mutual fund, separately managed account, collective investment trust, and institutional separate account product channels, as applicable.

The Board noted that the Core Bond Portfolio’s contractual management fee rate ranked in the first quartile, and that the actual management fee rate and total expense ratio ranked in the first and second quartiles, respectively, relative to the Core Bond Portfolio’s Expense Peers. The Board also noted that the Core Bond Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Core Bond Portfolio increases above certain contractually specified levels. The Board noted that if the size of the Core Bond Portfolio were to decrease, the Core Bond Portfolio could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Core Bond Portfolio’s total expenses as a percentage of the Core Bond Portfolio’s average daily net assets on a class-by-class basis.

The Board noted that the High Yield Bond Portfolio’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio each ranked in the second quartile, relative to the High Yield Bond Portfolio’s Expense Peers. The Board also noted that the High Yield Bond Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the High Yield Bond Portfolio increases above certain contractually specified levels. The Board noted that if the size of the High Yield Bond Portfolio were to decrease, the High Yield Bond Portfolio could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the High Yield Bond Portfolio’s total expenses as a percentage of the High Yield Bond Portfolio’s average daily net assets on a class-by-class basis.

The Board noted that the Low Duration Bond Portfolio’s contractual management fee rate ranked in the second quartile, and that the actual management fee rate and total expense ratio ranked in the second and first quartiles, respectively, relative to the Low Duration Bond Portfolio’s Expense Peers. The Board also noted that the Low Duration Bond Portfolio has an advisory fee arrangement that includes breakpoints that adjust the fee rate downward as the size of the Low Duration Bond Portfolio increases above certain contractually specified levels. The Board noted that if the size of the Low Duration Bond Portfolio were to decrease, the Low Duration Bond Portfolio could lose the benefit of one or more breakpoints. The Board further noted that BlackRock and the Board have contractually agreed to a cap on the Low Duration Bond Portfolio’s total expenses as a percentage of the Low Duration Bond Portfolio’s average daily net assets on a class-by-class basis. In addition, the Board noted that BlackRock proposed, and the Board agreed to, a lower contractual expense cap on a class-by-class basis. This expense cap reduction was implemented on March 29, 2018.

D. Economies of Scale: The Board, including the Independent Board Members, considered the extent to which economies of scale might be realized as the assets of each Fund increase, including the existence of fee waivers and/or expense caps, as applicable, noting that any contractual fee waivers and expense caps had been approved by the Board. The Board also considered the extent to which each Fund benefits from such economies in a variety of ways, and whether there should be changes in the advisory fee rate or breakpoint structure in order to enable each Fund to more fully participate in these economies of scale. The Board considered each Fund’s asset levels and whether the current fee schedule was appropriate. In its consideration, the Board Members took into account the existence of any expense caps and further considered the continuation and/or implementation, as applicable, of such caps.

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

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

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

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Disclosure of Investment Advisory Agreement  (continued)

Conclusion

The Board, including the Independent Board Members, approved the continuation of the Advisory Agreement between the Manager and the Trust, on behalf of each Fund, for a one-year term ending June 30, 2020. Based upon its evaluation of all of the aforementioned factors in their totality, as well as other information, the Board, including the Independent Board Members, was satisfied that the terms of the Agreement were fair and reasonable and in the best interest of each Fund and its shareholders. In arriving at its decision to approve the Agreement, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

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Disclosure of Sub-Advisory Agreements

The Board of Trustees (the “Board,” and the members of which are referred to as “Board Members”) of BlackRock Funds V (the “Trust”), on behalf of its series BlackRock Core Bond Portfolio (the “Fund”), met in person on July 29, 2019 (the “July Meeting”) to consider the initial approval of the sub-advisory agreements (the “Sub-Advisory Agreements”) between BlackRock Advisors, LLC (the “Manager”), the Fund’s investment advisor, and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited with respect to the Fund. The Sub-Advisory Agreements were substantially similar to the sub-advisory agreements previously approved with respect to certain other portfolios of the Trust.

On the date of the July Meeting, the Board consisted of eleven individuals, nine of whom were not “interested persons” of the Trust as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Board Members”). Pursuant to the 1940 Act, the Board is required to consider the initial approval of the Sub-Advisory Agreements.

At the July Meeting, the Board reviewed materials relating to its consideration of the proposed Sub-Advisory Agreements. The Fund’s investment advisory agreement with the Manager was most recently approved by the Board at in-person meetings on May 1, 2019 (the “May Meeting”) and June 5-6, 2019 (the “June Meeting”). A discussion of the basis for the Board’s approval of this agreement at the May and June Meetings is included in the Fund’s annual shareholder report for the fiscal year ended September 30, 2019. The factors considered by the Board at the July Meeting in connection with approval of the proposed Sub-Advisory Agreements were substantially the same as the factors considered at the May and June Meetings.

Following discussion, all the Board Members present at the July Meeting, including all the Independent Board Members present, approved the Sub-Advisory Agreements between the Manager and (a) BlackRock International Limited and (b) BlackRock (Singapore) Limited with respect to the Fund for a two-year term beginning on the effective date of the Sub-Advisory Agreements. Based upon its evaluation of all of the aforementioned factors in their totality, the Board, including the Independent Board Members, was satisfied that the terms of the Sub-Advisory Agreements were fair and reasonable and in the best interest of the Fund and its shareholders. In arriving at its decision to approve the Sub-Advisory Agreements, the Board did not identify any single factor or group of factors as all-important or controlling, but considered all factors together, and different Board Members may have attributed different weights to the various factors considered. The Independent Board Members were also assisted by the advice of independent legal counsel in making this determination.

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Trustee and Officer Information

Independent Trustees (a)
Name Year of Birth (b)	Position(s) Held (Length of Service) (c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships held During the Past Five Years
Richard E. Cavanagh 1946	Co-Chair of the Board and Trustee (Since 2019)	Director, The Guardian Life Insurance Company of America since 1998; Board Chair, Volunteers of America (a not-for-profit organization) from 2015 to 2018 (board member since 2009); Director, Arch Chemicals (chemical and allied products) from 1999 to 2011; Trustee, Educational Testing Service from 1997 to 2009 and Chairman thereof from 2005 to 2009; Senior Advisor, The Fremont Group since 2008 and Director thereof since 1996; Faculty Member/Adjunct Lecturer, Harvard University since 2007 and Executive Dean from 1987 to 1995; President and Chief Executive Officer, The Conference Board, Inc. (global business research organization) from 1995 to 2007.	86 RICs consisting of 110 Portfolios	None
Karen P. Robards 1950	Co-Chair of the Board and Trustee (Since 2019)	Principal of Robards & Company, LLC (consulting and private investing) since 1987; Co-founder and Director of the Cooke Center for Learning and Development (a not-for-profit organization) since 1987; Director of Enable Injections, LLC (medical devices) since 2019; Investment Banker at Morgan Stanley from 1976 to 1987.	86 RICs consisting of 110 Portfolios	Greenhill & Co., Inc.; AtriCure, Inc. (medical devices) from 2000 until 2017
Michael J. Castellano 1946	Trustee (Since 2019)	Chief Financial Officer of Lazard Group LLC from 2001 to 2011; Chief Financial Officer of Lazard Ltd from 2004 to 2011; Director, Support Our Aging Religious (non-profit) from 2009 to June 2015 and since 2017; Director, National Advisory Board of Church Management at Villanova University since 2010; Trustee, Domestic Church Media Foundation since 2012; Director, CircleBlack Inc. (financial technology company) since 2015.	86 RICs consisting of 110 Portfolios	None
Cynthia L. Egan 1955	Trustee (Since 2019)	Advisor, U.S. Department of the Treasury from 2014 to 2015; President, Retirement Plan Services, for T. Rowe Price Group, Inc. from 2007 to 2012; executive positions within Fidelity Investments from 1989 to 2007.	86 RICs consisting of 110 Portfolios	Unum (insurance); The Hanover Insurance Group (insurance); Envestnet (investment platform) from 2013 until 2016
Frank J. Fabozzi(d) 1948	Trustee (Since 2019)	Editor of The Journal of Portfolio Management since 1986; Professor of Finance, EDHEC Business School (France) since 2011; Visiting Professor, Princeton University for the 2013 to 2014 academic year and Spring 2017 semester; Professor in the Practice of Finance, Yale University School of Management from 1994 to 2011 and currently a Teaching Fellow in Yale’s Executive Programs; Board Member, BlackRock Equity-Liquidity Funds from 2014 to 2016; affiliated professor Karlsruhe Institute of Technology from 2008 to 2011.	87 RICs consisting of 111 Portfolios	None
Henry Gabbay 1947	Trustee (Since 2007)	Board Member, BlackRock Equity-Bond Board from 2007 to 2018; Board Member, BlackRock Equity-Liquidity and BlackRock Closed-End Fund Boards from 2007 through 2014; Consultant, BlackRock, Inc. from 2007 to 2008; Managing Director, BlackRock, Inc. from 1989 to 2007; Chief Administrative Officer, BlackRock Advisors, LLC from 1998 to 2007; President of BlackRock Funds and BlackRock Allocation Target Shares (formerly, BlackRock Bond Allocation Target Shares) from 2005 to 2007 and Treasurer of certain closed-end funds in the BlackRock fund complex from 1989 to 2006.	86 RICs consisting of 110 Portfolios	None
R. Glenn Hubbard 1958	Trustee (Since 2019)	Dean, Columbia Business School from 2004 to 2019; Faculty Member, Columbia Business School since 1988.	86 RICs consisting of 110 Portfolios	ADP (data and information services); Metropolitan Life Insurance Company (insurance); KKR Financial Corporation (finance) from 2004 until 2014
W. Carl Kester(d) 1951	Trustee (Since 2019)	George Fisher Baker Jr. Professor of Business Administration, Harvard Business School since 2008; Deputy Dean for Academic Affairs from 2006 to 2010; Chairman of the Finance Unit, from 2005 to 2006; Senior Associate Dean and Chairman of the MBA Program from 1999 to 2005; Member of the faculty of Harvard Business School since 1981.	87 RICs consisting of 111 Portfolios	None

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Trustee and Officer Information  (continued)

Independent Trustees (a) (continued)
Name Year of Birth (b)	Position(s) Held (Length of Service) (c)	Principal Occupation(s) During Past Five Years	Number of BlackRock-Advised Registered Investment Companies (“RICs”) Consisting of Investment Portfolios (“Portfolios”) Overseen	Public Company and Other Investment Company Directorships held During the Past Five Years
Catherine A. Lynch(d) 1961	Trustee (Since 2019)	Chief Executive Officer, Chief Investment Officer and various other positions, National Railroad Retirement Investment Trust from 2003 to 2016; Associate Vice President for Treasury Management, The George Washington University from 1999 to 2003; Assistant Treasurer, Episcopal Church of America from 1995 to 1999.	87 RICs consisting of 111 Portfolios	None
Interested Trustees (a)(e)
Robert Fairbairn 1965	Trustee (Since 2015)	Vice Chairman of BlackRock, Inc. since 2019; Member of BlackRock’s Global Executive and Global Operating Committees; Co-Chair of BlackRock’s Human Capital Committee; Senior Managing Director of BlackRock, Inc. from 2010 to 2019; oversaw BlackRock’s Strategic Partner Program and Strategic Product Management Group from 2012 to 2019; Member of the Board of Managers of BlackRock Investments, LLC from 2011 to 2018; Global Head of BlackRock’s Retail and iShares® businesses from 2012 to 2016.	123 RICs consisting of 289 Portfolios	None
John M. Perlowski(d) 1964	Trustee (Since 2015); President and Chief Executive Officer (Since 2010)	Managing Director of BlackRock, Inc. since 2009; Head of BlackRock Global Accounting and Product Services since 2009; Advisory Director of Family Resource Network (charitable foundation) since 2009.	124 RICs consisting of 290 Portfolios	None
(a) The address of each Trustee is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. (b) Each Independent Trustee holds office until his or her successor is duly elected and qualifies or until his or her earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or charter or statute, or until December 31 of the year in which he or she turns 75. Trustees who are “interested persons,” as defined in the Investment Company Act serve until their successor is duly elected and qualifies or until their earlier death, resignation, retirement or removal as provided by the Trust’s by-laws or statute, or until December 31 of the year in which they turn 72. The Board may determine to extend the terms of Independent Trustees on a case-by-case basis, as appropriate. (c) Following the combination of Merrill Lynch Investment Managers, L.P. (“MLIM”) and BlackRock, Inc. in September 2006, the various legacy MLIM and legacy BlackRock fund boards were realigned and consolidated into three new fund boards in 2007. Certain Independent Trustees first became members of the boards of other legacy MLIM or legacy BlackRock funds as follows: Richard E. Cavanagh, 1994; Frank J. Fabozzi, 1988; R. Glenn Hubbard, 2004; W. Carl Kester, 1995; and Karen P. Robards, 1998. Certain other Independent Trustees became members of the boards of the closed-end funds in the Fixed-Income Complex as follows: Michael J. Castellano, 2011; Cynthia L. Egan, 2016; and Catherine A. Lynch, 2016. (d) Dr. Fabozzi, Dr. Kester, Ms. Lynch and Mr. Perlowski are also trustees of the BlackRock Credit Strategies Fund. (e) Mr. Fairbairn and Mr. Perlowski are both “interested persons,” as defined in the 1940 Act, of the Trust based on their positions with BlackRock, Inc. and its affiliates. Mr. Fairbairn and Mr. Perlowski are also board members of the BlackRock Multi-Asset Complex.

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Trustee and Officer Information  (continued)

Officers Who Are Not Trustees (a)
Name Year of Birth (b)	Position(s) Held (Length of Service)	Principal Occupation(s) During Past Five Years
Jennifer McGovern 1977	Vice President (Since 2014)	Managing Director of BlackRock, Inc. since 2016; Director of BlackRock, Inc. from 2011 to 2015; Head of Product Development and Oversight for BlackRock’s Strategic Product Management Group since 2019; Head of Product Structure and Oversight for BlackRock’s U.S. Wealth Advisory Group from 2013 to 2019.
Neal J. Andrews 1966	Chief Financial Officer (Since 2007)	Chief Financial Officer of the iShares® exchange traded funds since 2019; Managing Director of BlackRock, Inc. since 2006.
Jay M. Fife 1970	Treasurer (Since 2007)	Managing Director of BlackRock, Inc. since 2007.
Charles Park 1967	Chief Compliance Officer (Since 2014)	Anti-Money Laundering Compliance Officer for certain BlackRock-advised Funds from 2014 to 2015; Chief Compliance Officer of BlackRock Advisors, LLC and the BlackRock-advised Funds in the BlackRock Multi-Asset Complex and the BlackRock Fixed-Income Complex since 2014; Principal of and Chief Compliance Officer for iShares® Delaware Trust Sponsor LLC since 2012 and BlackRock Fund Advisors (“BFA”) since 2006; Chief Compliance Officer for the BFA-advised iShares® exchange traded funds since 2006; Chief Compliance Officer for BlackRock Asset Management International Inc. since 2012.
Lisa Belle 1968	Anti-Money Laundering Compliance Officer (Since 2019)	Managing Director of BlackRock, Inc. since 2019; Global Financial Crime Head for Asset and Wealth Management of JP Morgan from 2013 to 2019; Managing Director of RBS Securities from 2012 to 2013; Head of Financial Crimes for Barclays Wealth Americas from 2010 to 2012.
Janey Ahn 1975	Secretary (Since 2019)	Managing Director of BlackRock, Inc. since 2018; Director of BlackRock, Inc. from 2009 to 2017.
(a) The address of each Officer is c/o BlackRock, Inc., 55 East 52nd Street, New York, New York 10055. (b) Officers of the Trust serve at the pleasure of the Board.

Further information about the Trust’s Trustees and Officers is available in the Trust’s Statement of Additional Information, which can be obtained without charge by calling (800) 441-7762.

Effective September 4, 2019, Janey Ahn replaced Benjamin Archibald as the Secretary of the Trust.

Effective September 5, 2019, Lisa Belle replaced John MacKessy as the Anti-Money Laundering Compliance Officer of the Trust.

Investment Adviser and Administrator

BlackRock Advisors, LLC

Wilmington, DE 19809

Sub-Advisers^(a)

BlackRock International Limited

Edinburgh, EH3 8BL

United Kingdom

BlackRock (Singapore) Limited

079912 Singapore

Accounting Agent

JPMorgan Chase Bank, N.A.

New York, NY 10179

Transfer Agent

BNY Mellon Investment Servicing (US) Inc.

Wilmington, DE 19809

Custodian

JPMorgan Chase Bank, N.A.

New York, NY 10179

Independent Registered Public Accounting Firm

Deloitte & Touche LLP

Boston, MA 02116

Distributor

BlackRock Investments, LLC

New York, NY 10022

Legal Counsel

Willkie Farr & Gallagher LLP

New York, NY 10019

Address of the Trust

100 Bellevue Parkway

Wilmington, DE 19809

^(a)  For Core Bond.

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Additional Information

General Information

Householding

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

Availability of Quarterly Schedule of Investments

The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT, and for reporting periods ended prior to March 31, 2019, filed such information on Form N-Q. The Funds’ Forms N-PORT and N-Q are available on the SEC’s website at http:// www.sec.gov. The Funds’ Forms N-PORT and N-Q may also be obtained upon request and without charge by calling (800) 441-7762.

Availability of Proxy Voting Policies and Procedures

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

Availability of Proxy Voting Record

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

BlackRock’s Mutual Fund Family

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

Shareholder Privileges

Account Information

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

Automatic Investment Plans

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

Systematic Withdrawal Plans

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

Retirement Plans

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

A D D I T I O N A L   I N F O R M A T I O N 161

Additional Information  (continued)

BlackRock Privacy Principles

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

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

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

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

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

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Glossary of Terms Used in this Report

Currency
ARS	Argentine Peso
AUD	Australian Dollar
BRL	Brazilian Real
CAD	Canadian Dollar
CHF	Swiss Franc
COP	Colombian Peso
EUR	Euro
GBP	British Pound
IDR	Indonesian Rupiah
INR	Indian Rupee
JPY	Japanese Yen
KRW	South Korean Won
MXN	Mexican Peso
NOK	Norwegian Krone
NZD	New Zealand Dollar
RUB	New Russian Ruble
SEK	Swedish Krona
TWD	Taiwan New Dollar
USD	United States Dollar
ZAR	South African Rand

Portfolio Abbreviations
BA	Canadian Bankers Acceptances
BZDIOVER	Overnight Brazil CETIP — Interbank Rate
CLO	Collateralized Loan Obligation
CSMC	Credit Suisse Mortgage Capital
DAC	Designated Activity Company
ETF	Exchange-Traded Fund
EURIBOR	Euro Interbank Offered Rate
FDR	Fiduciary Depositary Receipt
GO	General Obligation Bonds
LIBOR	London Interbank Offered Rate
MSCI	Morgan Stanley Capital International
MXIBTIIE	Mexico Interbank TIIE 28-Day
OTC	Over-the-counter
PIK	Payment-In-Kind
RB	Revenue Bonds
REIT	Real Estate Investment Trust
S&P	Standard & Poor’s
SCA	Svenska Cellulosa Aktiebolaget
SOFR	Secured Overnight Financing Rate
SPDR	Standard & Poor’s Depositary Receipts
TBA	To-be-announced

G L O S S A R Y   O F   T E R M S   U S E D   I N   T H I S   R E P O R T 163

Want to know more?

blackrock.com    |    877-275-1255 (1-877-ASK-1BLK)

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

Taxable3-9/19-AR

Item 2 – Code of Ethics – The registrant (or the “Fund”) has adopted a code of ethics, as of the end of the period covered by this report, applicable to the registrant’s principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. During the period covered by this report, the code of ethics was amended to update certain information and to make other non-material changes. During the period covered by this report, there have been no waivers granted under the code of ethics. The registrant undertakes to provide a copy of the code of ethics to any person upon request, without charge, who calls 1-800-441-7762.

Item 3 – Audit Committee Financial Expert – The registrant’s board of directors (the “board of directors”), has determined that (i) the registrant has the following audit committee financial experts serving on its audit committee and (ii) each audit committee financial expert is independent:

Michael Castellano

Frank J. Fabozzi

Henry Gabbay

Catherine A. Lynch

Karen P. Robards

The registrant’s board of directors has determined that Karen P. Robards qualifies as an audit committee financial expert pursuant to Item 3(c)(4) of Form N-CSR.

Ms. Robards has a thorough understanding of generally accepted accounting principles, financial statements and internal control over financial reporting as well as audit committee functions. Ms. Robards has been President of Robards & Company, a financial advisory firm, since 1987. Ms. Robards was formerly an investment banker for more than 10 years where she was responsible for evaluating and assessing the performance of companies based on their financial results. Ms. Robards has over 30 years of experience analyzing financial statements. She also is a member of the audit committee of one publicly held company and a non-profit organization.

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

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Item 4 – Principal Accountant Fees and Services

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

	(a) Audit Fees		(b) Audit-Related  Fees1		(c) Tax Fees2		(d) All Other Fees
Entity Name	Current   Fiscal Year   End	Previous   Fiscal Year   End	Current   Fiscal Year   End	Previous   Fiscal Year   End	Current   Fiscal Year   End	Previous   Fiscal Year   End	Current   Fiscal Year   End	Previous   Fiscal Year   End
BlackRock Core Bond Portfolio	$53,550	$53,550	$38	$0	$20,600	$20,600	$0	$0
BlackRock Credit Strategies Income Fund	$52,428	$52,428	$213	$0	$16,000	$16,000	$0	$0
BlackRock GNMA Portfolio	$38,964	$38,964	$38	$0	$16,000	$16,000	$0	$0
BlackRock High Yield Bond Portfolio	$75,582	$78,030	$38	$0	$29,352	$34,100	$0	$0
BlackRock Low Duration Bond Portfolio	$44,268	$44,268	$38	$0	$20,600	$20,600	$0	$0
BlackRock U.S. Government Bond Portfolio	$38,352	$39,576	$38	$0	$16,000	$15,400	$0	$0

The following table presents fees billed by D&T that were required to be approved by the registrant’s audit committee (the “Committee”) for services that relate directly to the operations or financial reporting of the Fund and that are rendered on behalf of BlackRock Advisors, LLC (“Investment Adviser” or “BlackRock”) and entities controlling, controlled by, or under common control with BlackRock (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Fund (“Affiliated Service Providers”):

	Current Fiscal Year End	Previous Fiscal Year End
(b) Audit-Related Fees1	$0	$0
(c) Tax Fees2	$0	$0
(d) All Other Fees3	$2,050,500	$2,274,000

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

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

³ Non-audit fees of $2,050,500 and $2,274,000 for the current fiscal year and previous fiscal year, respectively, were paid to the Fund’s principal accountant in their entirety by BlackRock, in connection with services provided to the Affiliated Service Providers of the Fund and of certain other funds sponsored and advised by BlackRock or its affiliates for a service organization review and an accounting research tool subscription. These amounts represent aggregate fees paid by BlackRock and were not allocated on a per fund basis.

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

The Committee has adopted policies and procedures with regard to the pre-approval of services. Audit, audit-related and tax compliance services provided to the registrant on an annual basis require specific pre-approval by the Committee. The Committee also must approve other non-audit services provided to the registrant and those non-audit services provided to the Investment Adviser and Affiliated Service Providers that relate directly to the operations and the financial reporting of the registrant. Certain of these non-audit services that the Committee believes are (a) consistent with the SEC’s auditor independence rules and (b) routine and recurring services that will not impair the independence of the independent accountants may be approved by the Committee without consideration on a specific case-by-case basis (“general pre-approval”). The term of any general pre-approval is 12 months from the date of the pre-approval, unless the Committee provides

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for a different period. Tax or other non-audit services provided to the registrant which have a direct impact on the operations or financial reporting of the registrant will only be deemed pre-approved provided that any individual project does not exceed $10,000 attributable to the registrant or $50,000 per project. For this purpose, multiple projects will be aggregated to determine if they exceed the previously mentioned cost levels.

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

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

(f) Not Applicable

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

Entity Name	Current Fiscal Year   End	Previous Fiscal Year   End
BlackRock Core Bond Portfolio	$20,638	$20,600
BlackRock Credit Strategies Income Fund	$16,213	$16,000
BlackRock GNMA Portfolio	$16,038	$16,000
BlackRock High Yield Bond Portfolio	$29,390	$34,100
BlackRock Low Duration Bond Portfolio	$20,638	$20,600
BlackRock U.S. Government Bond Portfolio	$16,038	$15,400

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

Current Fiscal Year   End	Previous Fiscal Year   End
$2,050,500	$2,274,000

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

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

Item 5 – Audit Committee of Listed Registrants – Not Applicable

Item 6 – Investments

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

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

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

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

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

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

Item 11 – Controls and Procedures

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

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

Item 12 – Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not Applicable to the registrant.

Item 13 – Exhibits attached hereto

(a)(1) – Code of Ethics – See Item 2

(a)(2) – Certifications – Attached hereto

5

(a)(3) – Not Applicable

(a)(4) – Not Applicable

(b) – Certifications – Attached hereto

6

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

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

Date: December 3, 2019

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

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

Date: December 3, 2019

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

Date: December 3, 2019

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